December 17, 2025
Mr. Banks (for himself, Mr. Kaine, Mr. Booker, and Mr. Van Hollen) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
To amend the Higher Education Act of 1965 to eliminate origination fees on Federal Direct loans.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Student Loan Tax Elimination Act
.
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Subsection (c) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.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 date of enactment of this Act.