May 1, 2025
Mr. Smucker (for himself and Ms. Davids of Kansas) introduced the following bill; which was referred to the Committee on Education and Workforce
To amend the Higher Education Act of 1965 to eliminate origination fees on Federal Direct loans.
Section 1. Short title
This Act may be cited as the Student Loan Tax Elimination Act
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Sec. 2. Elimination of origination fees on federal direct loans
(a) Repeal of origination fees
Subsection (c) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.
(b) Effective date
The amendment made by subsection (a) shall apply with respect to loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first disbursement of principal is made, or, in the case of a Federal Direct Consolidation Loan, the application is received, on or after July 1 following the enactment of this Act.