Bill · S. 3538· Senate(119-S-3538)
Student Loan Tax Elimination Act
- Introduced
- 12/17/2025
- Last activity
- 12/17/2025 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Jim Banks
- Cosponsors
- - 0 - 4
- Introduced
- In Committee
What this bill would do
This bill, titled the Student Loan Tax Elimination Act, seeks to change the Higher Education Act of 1965. The primary goal is to eliminate origination fees on Federal Direct loans. This would involve repealing subsection (c) of section 455 of the Higher Education Act. The change would apply to loans where the first disbursement of principal occurs on or after July 1 following the bill's enactment. It also applies to Federal Direct Consolidation Loan applications received after that same date.
Yes· 3 of 6
Would people in their twenties and thirties be better off under this?+5
Eliminating loan origination fees provides direct financial relief to young adults pursuing higher education.
Would households on low incomes be better off under this?+5
Reducing the upfront costs of student loans benefits low-income households by making education more affordable.
Would middle-income households be better off under this?+5
The elimination of origination fees reduces the total cost of borrowing for middle-income families paying for college.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Elimination of fees: By repealing the origination fees found in subsection (c) of section 455 of the Higher Education Act of 1965, students will no longer have to pay these specific upfront costs on Federal Direct loans (Section 2(a)).
Potential Negative Impacts for People
- No negative impacts are mentioned: The provided text does not list any negative consequences or burdens resulting from the proposed changes (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+5Good For Middle Class Households+5Good For People With Disabilities+5Good For Students+5Good For Young Adults+5
- Education And Technology
- Improves Student Loan Relief+5
- 5/20/2026
- 1 Cosponsor added.
- 12/17/2025
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tammy BaldwinDemocrat · Wisconsin
Cory BookerDemocrat · New Jersey
Timothy KaineDemocrat · Virginia
Chris Van HollenDemocrat · Maryland