H.R.4747: Making College More Affordable Act

The Make College More Affordable Act would establish federal “interest-free” education loans for undergraduate students. The terms and conditions of these loans would be the same as Stafford Loans, though the interest rate would be 3.76 percent. Notably, interest would accrue, but only during periods when the borrower is not earning taxable income due to “professional negligence, professional incompetence, or malicious action on the part of the borrower.” The legislation does not explicitly define the terms “professional negligence,” “professional incompetence,” or “malicious action.”

Additionally, payment would automatically be withheld from the pre-tax income of the borrower. This amount would exist on a progressive scale, depending on borrower’s gross income, capping at 10 percent.