Parents Opt-in Protection Act

House Bill

H.R. 4986

119th Congress

Parents Opt-in Protection Act

In Committee

Introduced:Sep 8, 2025

Primary Sponsor

Mary E. Miller

Representative

Republican

IL-15

Cosponsors

29

Quick Stats

Policy Area

Education

Summary

The Parents Opt-in Protection Act aims to make federal student loans more affordable by eliminating interest, allowing loan refinancing, and creating a tiered interest rate system. It also establishes an Education Affordability Trust Fund to help cover administrative costs and potentially fund additional grants.

Latest Action

Referred to the Committee on Education and the Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

SponsorMary E. Miller (R-IL)

Introduced9/8/2025

StatusReferred to the House Committee on Education and Workforce.

ChamberHouse

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Vote Prediction

Parents Opt-in Protection Act

The Parents Opt-in Protection Act aims to make federal student loans more affordable by eliminating interest, allowing loan refinancing, and creating a tiered interest rate system. It also establishes an Education Affordability Trust Fund to help cover adminis

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The Parents Opt-in Protection Act aims to make federal student loans more affordable by eliminating interest, allowing loan refinancing, and creating a tiered interest rate system. It also establishes an Education Affordability Trust Fund to help cover administrative costs and potentially fund additional grants.

Bill Number: 4986
Sponsor: Mary E. Miller (R-IL)
Introduced: 9/8/2025
Status: Referred to the House Committee on Education and Workforce.
Policy Area: Education

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Parents Opt-in Protection Act
Bill Number: 4986
Sponsor: Mary E. Miller (R-IL)
Status: Referred to the House Committee on Education and Workforce.
Introduced: 9/8/2025
Summary: The Parents Opt-in Protection Act aims to make federal student loans more affordable by eliminating interest, allowing loan refinancing, and creating a tiered interest rate system. It also establishes an Education Affordability Trust Fund to help cover administrative costs and potentially fund addit

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

The Parents Opt-in Protection Act aims to make federal student loans more affordable by eliminating interest, allowing loan refinancing, and creating a tiered interest rate system. It also establishes an Education Affordability Trust Fund to help cover administrative costs and potentially fund additional grants.

Last updated: 12/30/2025

Official Summary

Congressional Research Service summary

Student Loan Interest Elimination ActThis bill makes changes to federal student loans, including to interest rates. Specifically, the bill directs the Department of Education (ED) to establish and implement procedures to (1) modify the terms of Federal Direct Loans so that beginning on July 1, 2024, no interest shall accrue on such a loan; and (2) allow a borrower to opt out of this loan modification.Additionally, ED must establish and implement procedures to (1) refinance eligible loans that are not Federal Direct Loans (e.g., privately held Federal Family Education Loans and Perkins Loans), and (2) allow a borrower to opt out of this loan refinancing. The bill outlines the terms and conditions of these refinanced loans, including by prohibiting ED from charging origination fees and specifying that no interest shall accrue on these loans.Next, the bill creates a tiered interest rate (based on the borrower's total adjusted available income) for federal student loans made on or after July 1, 2024. The bill caps this interest rate at 4%.The bill establishes the Education Affordability Trust Fund. ED must deposit all payments made on federal student loans into this trust fund. The Trust Fund Board, as established by this bill, must transfer the profits from investments of this trust fund to ED to pay for the administrative costs of carrying out federal student loan programs.The bill allows ED to use excess amounts of funds in the trust fund to carry out a Supplemental Pell Grant Program.

Key Points

Main provisions of the bill

Eliminates interest on federal student loans starting in July 2024, allowing borrowers to opt out if they choose
Allows refinancing of non-federal student loans with no origination fees and no interest
Establishes a tiered interest rate system for new federal student loans, capped at 4%
Creates an Education Affordability Trust Fund to cover administrative costs and potentially fund additional grants

How This Impacts Americans

Potential effects on citizens and communities

If passed, this bill would significantly reduce the long-term costs of federal student loans for millions of borrowers. It would especially benefit lower-income students and graduates by eliminating interest and providing more affordable repayment options. The Trust Fund could also lead to increased financial aid and grant opportunities, further improving college affordability.

Policy Areas

Primary Policy Area

Education

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

4986, 119th Congress (2025). "Parents Opt-in Protection Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-4986

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