# 119-s-3538: Student Loan Tax Elimination Act

119-s-3538, Student Loan Tax Elimination Act, is a 119th Congress bill sponsored by Sen. Banks, Jim [R-IN] (R-IN); status introduced; PRIA reads it as touching household money (as of 2026-05-22).

- Canonical: https://policyrisk.com/legislation/119-s-3538
- As of: 2026-05-22
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3538
- Congress: 119
- Title: Student Loan Tax Elimination Act
- Status: introduced
- Introduced: 2025-12-17
- Sponsor: Sen. Banks, Jim [R-IN] (R-IN)
- Cosponsors: 4
- Policy area: Education
- Touches household money: yes
- Last recorded action: 2026-05-22

## 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.

## Cosponsors (4)

- Sen. Kaine, Tim [D-VA] (D-VA), 2025-12-17T00:00:00.000Z
- Sen. Booker, Cory A. [D-NJ] (D-NJ), 2025-12-17T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-12-17T00:00:00.000Z
- Sen. Baldwin, Tammy [D-WI] (D-WI), 2026-05-20T00:00:00.000Z

## Provisions PRIA read

- No origination fees for student loans: benefit, medium. 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 receive…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-524: Coast Guard Authorization Act of 2025
- 119-s-1816: Improving Seniors’ Timely Access to Care Act of 2025
- 119-s-1032: Major Richard Star Act
- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.
- 119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewellyn Kyl, former Senator for the State of Arizona.

## Sources
- [119-s-3538 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3538)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-524: Coast Guard Authorization Act of 2025](https://policyrisk.com/legislation/119-s-524)
- [119-s-1816: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-s-1816)
- [119-s-1032: Major Richard Star Act](https://policyrisk.com/legislation/119-s-1032)
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewel…](https://policyrisk.com/legislation/119-sres-897)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3538 (as of 2026-05-22).