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119-s-3538119th CongressWALLET

Student Loan Tax Elimination Act

Sponsored By: Senator Banks, Jim [R-IN]

Introduced

Summary

Eliminates origination fees on Federal Direct student loans. This bill would repeal subsection (c) of section 455 of the Higher Education Act of 1965 and remove origination fees on Direct loans. The repeal would apply to loans with their first disbursement, or to Federal Direct Consolidation Loans when the application is received, on or after the July 1 following enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

No origination fees for student loans

This bill would repeal the rule that allows origination fees on Federal Direct student loans. You would not pay origination fees on Direct loans whose first principal disbursement is made on or after July 1 following the date of enactment. If your Federal Direct consolidation application is received on or after that date, you would also not pay an origination fee. An origination fee is money taken from your loan when it is given to you.

Sponsors & CoSponsors

Sponsor

Banks, Jim [R-IN]

IN • R

Cosponsors

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 12/17/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 12/17/2025

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 12/17/2025

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 5/20/2026

Roll Call Votes

No roll call votes available for this bill.

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