Eliminating the Hidden Student Loan Tax Act

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3674 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3674

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2019

 Mrs. Davis of California (for herself, Mr. Smucker, and Ms. Davids of 
   Kansas) introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 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the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.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, 
2020.
                                 <all>