Bill > HR3165

This bill aims to eliminate origination fees on Federal Direct student loans by repealing section 455(c) of the Higher Education Act of 1965. Origination fees are charges imposed by lenders when a student loan is first disbursed, which typically represent a percentage of the total loan amount and are deducted from the loan proceeds before the funds are distributed to the borrower. The bill would remove these fees for all Federal Direct loans, including student and consolidation loans, where the first principal disbursement or loan consolidation application occurs on or after July 1 following the bill's enactment. By eliminating these fees, the legislation seeks to reduce the upfront financial burden on students and families borrowing money for higher education, potentially making student loans more affordable and accessible. The bill represents a targeted approach to minimizing the initial costs associated with obtaining federal student loans, which could provide financial relief to students at the beginning of their educational borrowing process.

Education

https://www.congress.gov/bill/119th-congress/house-bill/3165/all-info