What does Preamble of Student Loan Tax Elimination Act do?

This bill proposes to amend the Higher Education Act of 1965. The proposed amendment aims to eliminate origination fees on Federal Direct loans.

What does SHORT TITLE. of Student Loan Tax Elimination Act do?

This bill is formally titled the Student Loan Tax Elimination Act.

What does ELIMINATION OF ORIGINATION FEES ON FEDERAL DIRECT LOANS. of Student Loan Tax Elimination Act do?

This section repeals subsection (c) of section 455 of the Higher Education Act of 1965. The repeal eliminates origination fees on Federal Direct Loans. The amendment applies to loans for which the first disbursement of principal is made on or after July 1 following the date of enactment. For Federal Direct Consolidation Loans, the amendment applies if the application is received on or after July 1 following the date of enactment.

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Student Loan Tax Elimination Act

Last updated: 12/17/2025 · Introduced: 12/17/2025

Author: Jim Banks (R-IN)

TL;DR (AI)

This bill eliminates origination fees for new Federal Direct Loans disbursed on or after July 1 following enactment.
The bill also eliminates origination fees for Federal Direct Consolidation Loans with applications received on or after July 1 following enactment.
The legislation amends the Higher Education Act of 1965 to remove the existing authority for these fees.

119th Congressin committeeHR. 3165(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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