Schatz, Pocan introduce legislation to end student loan debt crisis

US Sen. Brian Schatz (D-Hawai‘i) and US Rep. Mark Pocan (D-Wis.) introduced the Debt-Free College Act, legislation that will reverse the growing student debt crisis in the United States. The bill restores a path to affordable college by providing states incentives through matching grants to increase investments in public higher education and provide students with debt-free college.

“Solving the student loan debt crisis means focusing on the full cost of college – that includes books, room and board, and supplies,” said Schatz. “Our bill brings states back to the table and leverages federal dollars to reinvest in public education and help students and their families cover the real cost of college.”

“Every student in America deserves the opportunity to get a college education without student debt crushing them for years after graduation,” said Pocan. “The Debt-Free College Act creates a federal-state partnership that would enable students to attend college debt-free within five years. Student debt isn’t just about tuition—it’s books, housing, supplies, and food. This bill reflects those true costs. If we believe in the value of our education system, then we should make it easier for students to pursue higher education, not financially burdensome for years to come. This bill helps ensure that college is accessible to all.”

The Debt-Free College Act would establish a state-federal partnership that provides a dollar-for-dollar federal match to state higher education appropriations in exchange for a commitment to help students pay for the full cost of attendance without having to take on debt. The bicameral legislation, first introduced in 2018, was the first proposal to go beyond free tuition, and ensure that students leave college without the financial burden of student loan debt.

According to the Education Data Initiative, 72% of student debt holders believe their student loan debt will delay homeownership. A 2025 survey from The Institute for College Access & Success found that student loans negatively impacted the ability to cover basic needs for more than 4 in 10 borrowers. Fifty-two percent of borrowers reported that their loans negatively impacted their ability to save for retirement while nearly a third said loans impacted their plans to get married and start a family.

The bill is cosponsored by US Sens. Alex Padilla (D-Calif.), Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.), Dick Durbin (D-Ill.), Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Tammy Baldwin (D-Wis.), and Ben Ray Luján (D-N.M.).

In the House, the bill is cosponsored by US Reps. Yvette Clarke (D-N.Y.), Morgan McGarvey (D-Ky.), Eleanor Holmes Norton (D-D.C.), Judy Chu (D-Calif.), Ayanna Pressley (D-Mass.), Danny Davis (D-Ill.), Rashida Tlaib (D-Mich.), Bonnie Watson Coleman (D-N.J.), Chellie Pingree (D-Maine), Zoe Lofgren (D-Calif.), Pramila Jayapal (D-Wash.), Dan Goldman (D-N.Y.), Vicente Gonzalez (D-Texas), Ted Lieu (D-Calif.), Lateefah Simon (D-Calif.), Jesús García (D-Ill.), and Cleo Fields (D-La.).