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Doubling Pell Grants, Capping Student Loan Interest, and Improving Forgiveness

This bill doubles the maximum Pell Grant award and expands eligibility to include Dreamers and graduate students. It caps interest rates on new and refinanced student loans at 5%, eliminates origination fees, and sets the timeline for Public Service Loan Forgiveness at 8 years.
Key points
Increases the maximum Pell Grant to $14,000 by the 2030-2031 award year.
Caps interest rates on new and refinanced federal and private student loans at a maximum of 5%.
Sets the Public Service Loan Forgiveness (PSLF) requirement at 96 monthly payments (8 years).
Eliminates interest capitalization, preventing unpaid interest from being added to the principal loan balance.
Expands federal financial aid eligibility to include Dreamer students.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_4862
Sponsor: Rep. Scott, Robert C. "Bobby" [D-VA-3]
Process start date: 2025-08-01
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

LOAN Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_4862.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-08-01.

What are the main provisions?

Key points include:

  • Increases the maximum Pell Grant to $14,000 by the 2030-2031 award year.
  • Caps interest rates on new and refinanced federal and private student loans at a maximum of 5%.
  • Sets the Public Service Loan Forgiveness (PSLF) requirement at 96 monthly payments (8 years).
  • Eliminates interest capitalization, preventing unpaid interest from being added to the principal loan balance.
  • Expands federal financial aid eligibility to include Dreamer students.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Scott, Robert C. "Bobby" [D-VA-3].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-19.

CATEGORIES

Education Economy