Student Loan Tax Elimination Act
Source: Congress.gov ·
270 words in original text
What This Bill Does
This bill changes the Higher Education Act of 1965 by eliminating origination fees on Federal Direct loans. An origination fee is a charge the government adds to a loan when you first borrow money. The bill removes this fee for borrowers.
Who It Affects
Students or borrowers who take out Federal Direct loans or Federal Direct Consolidation Loans (loans that combine multiple student loans into one payment).
Key Provisions
- The bill repeals the rule that allows origination fees on Federal Direct loans (Sec. 2(a))
- This change applies to loans where the first payment of money is sent to the borrower on or after a specific date, or where a consolidation loan application is received on or after that date (Sec. 2(b))
What Changes
If this becomes law, borrowers will no longer pay origination fees when they take out new Federal Direct loans or consolidation loans going forward.
Important Definitions
Federal Direct loans: loans provided directly by the federal government to students to help pay for education.
Effective Date
The change applies to loans for which the first disbursement (payment of money) is made or, for consolidation loans, the application is received on or after Not specified in bill text (the date referenced in the bill text relates to when this bill was introduced, not when it becomes law).
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.