# 119-hr-4862: LOAN Act 119-hr-4862, LOAN Act, is a 119th Congress bill sponsored by Rep. Scott, Robert C. "Bobby" [D-VA-3] (D-VA); status introduced; PRIA reads it as touching household money (as of 2026-09-21). - Canonical: https://policyrisk.com/legislation/119-hr-4862 - As of: 2026-09-21 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-4862 - Congress: 119 - Title: LOAN Act - Status: introduced - Introduced: 2025-08-01 - Sponsor: Rep. Scott, Robert C. "Bobby" [D-VA-3] (D-VA) - Cosponsors: 27 - Policy area: Education - Touches household money: yes - Last recorded action: 2026-09-21 ## Summary **An overhaul of Pell Grants and federal student-loan rules.** The LOAN Act would raise and fully fund Pell Grant maximums, expand who can get Pell, and replace many loan rules with two clear repayment tracks plus new refinancing options. - Students and families: Raises the Pell maximum from $10,000 in 2026–27 to $14,000 by 2031–32 and then ties future increases to inflation. It also restores Pell eligibility to 18 semesters and adds rules that let students with negative Student Aid Indexes get extra aid. - Borrowers: Ends origination fees for new loans and creates two repayment pathways — a Fixed Plan and an Income-Driven Repayment (IDR) plan. The IDR plan can lead to forgiveness after about 20 years for non‑graduate loans and about 25 years for graduate loans. - Public service and defaulted borrowers: Streamlines Public Service Loan Forgiveness to 96 qualifying payments, builds an online PSLF portal and jobs database, and creates a rehabilitation pathway with affordable monthly payments and credit-report removal after successful rehab. ## Cosponsors (27) - Rep. Castro, Joaquin [D-TX-20] (D-TX), 2025-09-08T00:00:00.000Z - Rep. Subramanyam, Suhas [D-VA-10] (D-VA), 2025-08-01T00:00:00.000Z - Rep. Underwood, Lauren [D-IL-14] (D-IL), 2025-08-01T00:00:00.000Z - Rep. Moore, Gwen [D-WI-4] (D-WI), 2025-08-01T00:00:00.000Z - Rep. Thanedar, Shri [D-MI-13] (D-MI), 2025-08-01T00:00:00.000Z - Rep. McClellan, Jennifer L. [D-VA-4] (D-VA), 2025-08-26T00:00:00.000Z - Rep. Carson, André [D-IN-7] (D-IN), 2025-08-26T00:00:00.000Z - Rep. Davis, Danny K. [D-IL-7] (D-IL), 2025-09-08T00:00:00.000Z - Rep. Ansari, Yassamin [D-AZ-3] (D-AZ), 2025-09-08T00:00:00.000Z - Rep. Fields, Cleo [D-LA-6] (D-LA), 2025-09-08T00:00:00.000Z - Rep. Garamendi, John [D-CA-8] (D-CA), 2025-09-08T00:00:00.000Z - Rep. Bonamici, Suzanne [D-OR-1] (D-OR), 2025-09-08T00:00:00.000Z - Rep. Williams, Nikema [D-GA-5] (D-GA), 2025-09-08T00:00:00.000Z - Rep. Wilson, Frederica S. [D-FL-24] (D-FL), 2025-09-08T00:00:00.000Z - Del. Norton, Eleanor Holmes [D-DC-At Large] (D-DC), 2025-09-08T00:00:00.000Z - Rep. Tonko, Paul [D-NY-20] (D-NY), 2025-09-08T00:00:00.000Z - Rep. Kennedy, Timothy M. [D-NY-26] (D-NY), 2025-09-09T00:00:00.000Z - Rep. Evans, Dwight [D-PA-3] (D-PA), 2025-09-11T00:00:00.000Z - Rep. Chu, Judy [D-CA-28] (D-CA), 2025-11-18T00:00:00.000Z - Rep. Walkinshaw, James R. [D-VA-11] (D-VA), 2025-11-20T00:00:00.000Z - Rep. Grijalva, Adelita S. [D-AZ-7] (D-AZ), 2025-11-20T00:00:00.000Z - Rep. Adams, Alma S. [D-NC-12] (D-NC), 2025-12-03T00:00:00.000Z - Rep. Green, Al [D-TX-9] (D-TX), 2026-02-24T00:00:00.000Z - Rep. Simon, Lateefah [D-CA-12] (D-CA), 2026-04-28T00:00:00.000Z - Rep. Lynch, Stephen F. [D-MA-8] (D-MA), 2026-06-03T00:00:00.000Z - Rep. DeSaulnier, Mark [D-CA-10] (D-CA), 2026-06-29T00:00:00.000Z - Rep. Figures, Shomari [D-AL-2] (D-AL), 2026-07-20T00:00:00.000Z ## Provisions PRIA read - Lower rates, no fees, and interest rules: benefit, medium. If enacted, loans first disbursed on or after July 1, 2026 would get a fixed annual rate set each year no higher than 5.0%. The bill would replace the prior 4% origination fee with 0% for loans disbursed on or after July 1, 2026. It would ban capitalization of interest in many cases and require len… - Public Service Loan Forgiveness changes: benefit, medium. If enacted, PSLF would require 96 qualifying monthly payments made after October 1, 2007 while you worked in public service to get forgiveness. The bill clarifies which payments, deferments, and forbearances count toward PSLF and how prepayments apply. It would allow work as an independent contract… - Default, fraud, and rehabilitation rules: mixed, high. If enacted, the Secretary could accelerate and collect the entire unpaid balance when a borrower defaults and use standard collection tools like wage garnishment and IRS offsets. The Secretary could also demand repayment within 30 days if the borrower was found ineligible for a loan because of frau… - More Pell, grants, and student aid rules: mixed, high. If enacted, the maximum Pell Grant would rise on a schedule: $10,000 for 2026–2027; $11,000 for 2027–2028; $12,000 for 2028–2029; $13,000 for 2029–2030; and $14,000 for 2030–2031. From 2031–2032 on, the maximum would be $14,000 plus the annual CPI increase, rounded to the nearest $50. The bill woul… - New repayment and IDR rules: mixed, high. If enacted, loans made on or after July 1, 2026 would use one of two plans: a fixed plan or a new income-driven plan. The bill would set fixed-plan terms (10 years standard; longer tiered terms for some consolidations) and a $50 minimum monthly payment. The new income-driven plan would base payment… - Restore prior higher education law: mixed, high. If enacted, the bill would repeal Subtitles A through F of Public Law 119-21 and restore the prior Higher Education Act text as if those subtitles had never been enacted. This would reverse many recent statutory changes to the Higher Education Act and could affect students, borrowers, and instituti… - Federal student loan refinancing option: mixed, medium. If enacted, the Department would run a federal refinancing program for eligible loans disbursed before July 1, 2026. The new refinanced loan would equal unpaid principal plus accrued unpaid interest and late charges, carry a fixed rate (subject to the cap), and exclude capitalized interest and fees… - Private student loan reporting rules: mixed, medium. If enacted, private student loan lenders would have to report aggregate data to federal agencies. Reports would show total private loan debt held, number of borrowers, average interest rate, and delinquency and default proportions (30/60/90 days and in default). The data would be used by the Depart… ## Related bills - 119-hr-7973: Momnibus Act - 119-hr-51: Washington, D.C. Admission Act - 119-hr-5390: FAMILY Act - 119-hr-15: Equality Act - 119-hr-2743: Raise the Wage Act of 2025 - 119-hr-1589: American Dream and Promise Act of 2025 ## Sources - [119-hr-4862 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/4862) ## Related - [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973) - [119-hr-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-hr-51) - [119-hr-5390: FAMILY Act](https://policyrisk.com/legislation/119-hr-5390) - [119-hr-15: Equality Act](https://policyrisk.com/legislation/119-hr-15) - [119-hr-2743: Raise the Wage Act of 2025](https://policyrisk.com/legislation/119-hr-2743) - [119-hr-1589: American Dream and Promise Act of 2025](https://policyrisk.com/legislation/119-hr-1589) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-4862 (as of 2026-09-21).