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H.R. 3835 - Eliminating the Hidden Student Loan Tax Act
Introduced: 2017-09-26
Bill Status: Referred to the House Committee on Education and the Workforce.
 
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Full Text


115th CONGRESS
1st Session
H. R. 3835


    To amend the Higher Education Act of 1965 to eliminate origination fees for Federal Direct Loans.


IN THE HOUSE OF REPRESENTATIVES

September 26, 2017

    Mrs. Davis of California introduced the following bill; which was referred to the Committee on Education and the Workforce


A BILL

    To amend the Higher Education Act of 1965 to eliminate origination fees for Federal Direct Loans.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Eliminating the Hidden Student Loan Tax Act”.

SEC. 2. Elimination of origination fees for Federal Direct Loans.

(a) Sense of Congress.—It is the sense of Congress that no origination fees should be charged on any future Federal Direct Loans.

(b) Repeal of origination fees.—Subsection (c) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.

(c) Effective date.—The amendment made by subsection (b) shall apply with respect to loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first disbursement of principal is made, or, in the case of a Federal Direct Consolidation Loan, the application is received, on or after July 1, 2017.


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