This bill seeks to fundamentally reform federal student loan programs by eliminating interest on both existing and new loans. It mandates that, beginning July 1, 2026, no interest shall accrue on eligible federal direct loans, with an automatic modification process for borrowers. Furthermore, it establishes a mechanism for borrowers to refinance eligible non-federal direct loans into federal direct consolidation loans, which will also carry a zero percent interest rate and no origination fees. These refinanced loans will maintain the original repayment term, and prior payments will count towards income-driven repayment forgiveness. For new federal student loans disbursed or applied for 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. Students who would have received subsidized loans will instead be eligible for increased unsubsidized loan limits to compensate for this change. Additionally, annual and aggregate loan limits will be adjusted for inflation starting July 1, 2027, based on the Consumer Price Index. A central component of this legislation is the creation of the Education Affordability Trust Fund (EATF) , into which all repayments on federal student loans will be deposited. This fund will be overseen by a six-member Board, appointed by the President and confirmed by the Senate, with expertise in financial investments. The Board will appoint independent fund managers responsible for investing the Trust Fund's assets primarily in various types of bonds, adhering to strict rating and diversification requirements. These investments are prohibited in entities from countries lacking diplomatic relations with the U.S. or subject to sanctions. The primary purpose of the EATF is to transfer its investment returns, exceeding deposited loan repayments, to the Secretary of Education to cover the administrative costs of making federal direct loans. Should there be excess funds beyond these administrative needs, the Secretary may elect to use them for a Supplemental Federal Pell Grant Program . This program would provide additional Pell Grants to eligible students, potentially exceeding current maximum limits and not counting towards a student's lifetime duration limit. Excess funds could also support a Postsecondary Student Success Program for qualifying institutions. To facilitate the rapid implementation of these significant changes, the bill grants the Secretary of Education the authority to waive certain administrative requirements. Specifically, the Secretary may waive the master calendar requirements and negotiated rulemaking processes under the Higher Education Act of 1965. This provision aims to expedite the establishment of the new loan terms, refinancing programs, and the Education Affordability Trust Fund.