Student Loan Tax Elimination Act
Sponsored By: Senator Banks, Jim [R-IN]
Introduced
Summary
Eliminates the origination fee on Federal Direct student loans to lower the upfront cost borrowers pay when they take out federal student loans. This bill would repeal subsection (c) of section 455 of the Higher Education Act so no origination fee applies to loans made under part D of title IV, including Federal Direct Consolidation Loans, when the first disbursement or, for consolidations, the application is 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 Fee on Federal Direct Loans
If enacted, this bill would remove the statutory origination fee for Federal Direct student loans. The repeal would apply to loans first disbursed on or after the July 1 following enactment. For Federal Direct Consolidation Loans, the repeal would apply to applications received on or after that July 1. This would lower up-front borrowing costs and could save many borrowers hundreds of dollars depending on loan size.
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
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov