Section 1 Short title
This Act may be cited as the “Eliminating the Hidden Student Loan Tax Act”.
Eliminating the Hidden Student Loan Tax Act
A BILL
To amend the Higher Education Act of 1965 to eliminate origination fees for Federal Direct Loans.
Sec. 2 Elimination of origination fees for Federal Direct Loans
Sense of Congress— It is the sense of Congress that no origination fees should be charged on any future Federal Direct Loans.
Repeal of origination fees— Subsection (c) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.
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.