As discussions surrounding the student loan landscape remain at the forefront of congressional chatter, Sen. Marco Rubio (R-Fla.) has reintroduced a student loan repayment bill that would aim to rework the repayment system by making adjustments to the monthly repayment plans.
The bill, the Leveraging Opportunities for Americans Now (LOAN) Act, would eliminate interest on federal student loans, replacing it with a financing fee which would be equal to the amount the loan costs to service, paid over the life of the loan. The financing fee would not increase over the life of the loan and the bill would not eliminate the current student loan origination fee.
“It’s time to update our federal student loan system, because fear of debt should never stand in the way of an education and the pursuit of a better life,” Rubio said.
This change would be implemented for new loans made on or after July 1, 2022. Borrowers who were actively enrolled prior to that date would be able to borrow loans under the current system or could choose to borrow loans under the LOAN Act program.
Rubio first unveiled this legislation in 2019 but the bill did not garner any cosponsors in the Senate.
Stay tuned to Today’s News for more coverage of legislation concerning student loans.
Publication Date: 8/6/2021