Contact: Allie Arcese
Director of Communications
WASHINGTON, D.C., MARCH 29, 2023 — On Tuesday, a bipartisan group of lawmakers led by Sen. Mike Braun (R-Ind.) and Rep. Lloyd Smucker (R-Penn.) introduced a pair of bills in the Senate and House of Representatives — both titled the Student Loan Tax Elimination Act — that would eliminate student loan origination fees, which essentially function as a hidden tax on student loans. NASFAA has long advocated for the elimination of origination fees, and found that they have generated billions of dollars in revenue for the federal government over the last several years.
“Student loan origination fees are a relic of bank-based lending and have created a complex and unnecessary financial burden for students. Eliminating them will not only decrease the cost of college for students, but will also help students and families better understand the student loan program.
Finding bipartisan agreement can be tough in D.C., but lawmakers from across the political spectrum agree: origination fees stand in clear opposition to the overwhelming congressional support for simplification, transparency, and affordability in the federal student aid system. We applaud Sens. Braun, Sinema, Warren, Hawley, Kaine, Coons, and Van Hollen, as well as Rep. Smucker for reintroducing this legislative fix. We call on all members of Congress to join the growing momentum to end the hidden student loan tax on students and parents."
To set up an interview with a NASFAA spokesperson to discuss the impact of eliminating student loan origination fees, please email NASFAA Director of Communications Allie Arcese or call (202) 785-6954.
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 3/29/2023