This bill, titled the "Student Loan Interest Elimination Act," seeks to fundamentally reform federal student loan programs by eliminating interest on both existing and new loans. For current borrowers, it mandates that the Secretary of Education establish procedures to modify eligible Federal Direct Loans so that no interest accrues on them starting July 1, 2026. Borrowers of these loans can opt out of this modification at any time. Additionally, the bill creates a program for refinancing eligible non-Federal direct loans (such as certain FFELP loans or Public Health Service Act loans not held by the Secretary) into Federal Direct Consolidation Loans, which will also carry a 0% interest rate. These refinanced loans will retain their original repayment terms and allow borrowers to access existing loan forgiveness or other benefits. For new federal student loans disbursed on or after July 1, 2026, the bill sets the applicable interest rate at 0 percent for Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Concurrently, it terminates the authority to make new Federal Direct Stafford Loans (subsidized loans) after June 30, 2026, but increases the maximum annual amount for unsubsidized loans to compensate. Furthermore, the bill introduces an inflation adjustment for annual and aggregate loan limits, increasing them annually based on the Consumer Price Index starting July 1, 2027. A central component of the bill is the establishment of the Education Affordability Trust Fund within the Department of Education. All amounts repaid on federal student loans will be deposited into this Trust Fund, without further appropriation. The Trust Fund is overseen by a 6-member Board, appointed by the President with Senate advice and consent, comprising individuals with financial investment expertise. This Board is responsible for appointing independent fund managers and establishing investment guidelines. The independent fund managers are tasked with investing the Trust Fund's assets primarily in various types of bonds, adhering to strict rating and diversification requirements. The primary purpose of the Trust Fund's earnings (returns exceeding repayments) is to cover the administrative costs of the Department of Education in making loans. Any excess amounts in the Trust Fund can be used to fund a Supplemental Federal Pell Grant Program , providing additional grants to students, and to support the Postsecondary Student Success Program, with specific eligibility criteria for participating institutions. The Secretary of Education must report to Congress on the use of these excess funds.