A bipartisan group of representatives on Wednesday introduced a bill to eliminate student loan origination fees, which essentially function as a tax on federal student loans. A companion bill was introduced in the Senate last month.
The House bill—dubbed the Fee Free Student Loan Act and introduced by Reps. Susan Davis (D-CA), Lloyd Smucker (R-PA), and Sharice Davids (D-KS)—would save student loan borrowers more than $1.7 billion each year.
“Students who are about to take control of their future and invest in their higher education shouldn’t be hit with hidden fees.” Davis said in a statement. “Student debt makes it harder for graduates to fully participate in our economy, like buying a home or maybe venture out on a new startup. Federal student loans are an investment in our nation’s future. We need to be sure we are getting a good return on that investment by ensuring graduates can contribute to the economy when they leave college.”
During the 2019 NASFAA National Conference in Orlando last month, 2018-19 National Chair Lori Vedder urged financial aid administrators to write to their representatives to end student loan origination fees.