Student Loan Tax Elimination Act

HR 1842, the Student Loan Tax Elimination Act, eliminates origination fees on Federal Direct student loans. It directly affects borrowers who take out new Federal Direct loans under Title IV of the Higher Education Act, removing a one-time fee charged when loans are issued. The bill repeals the specific provision (section 455(c)) that required these fees, applying to loans with their first disbursement or consolidation application on or after March 27, 2022. This change reduces the initial cost for eligible borrowers by removing this fee from the loan amount.