CONGRESS FOR VOTERS

RepublicanBill · H.R. 3165· House(119-HR-3165)

Student Loan Tax Elimination Act

Rep. Smucker
Age: 62 years
Pennsylvania
Introduced
5/1/2025
Last activity
5/1/2025 — Referred to the House Committee on Education and Workforce.
Sponsored by
Lloyd Smucker
Cosponsors
Republican - 0Democrat - 4
Education
  1. Introduced
  2. In Committee

What this bill would do

This bill is titled the "Student Loan Tax Elimination Act." It aims to amend the Higher Education Act of 1965. The primary goal is to eliminate origination fees on Federal Direct loans. This change involves repealing subsection (c) of section 455 of the Higher Education Act of 1965. The new rules would apply to loans where the first principal disbursement occurs on or after July 1 following the bill's enactment.

Yes· 3 of 6

  • Would people in their twenties and thirties be better off under this?+5

    Young adults attending college benefit from the elimination of upfront origination fees on their loans.

  • Would students be better off under this?+5

    Students benefit directly from the removal of the origination fee on their Federal Direct loans.

  • Does this make college cost less?+5

    By repealing origination fees on Federal Direct loans, the bill reduces the total cost of borrowing for higher education.

The opposite

  • Does this reduce what the federal government spends?-2

    The elimination of origination fees reduces the revenue the government collects from student loan borrowers.