HENDERSON, Ky (WEHT) – Indiana Senator Mike Braun joined fellow Republican Senator Josh Hawley (MO), Independent Senator Kyrsten Sinema (AZ) and Democratic senators Elizabeth Warren (MA), Tim Kaine (VA), Chris Coons (DE) and Chris Van Hollen (MD) to introduce the Student Loan Tax Elimination Act.
Senator Braun says the act would a hidden tax on federal student loans called an “origination fee.” Senator Braun says the fees historically existed to offset the costs of private-sector partners. However, since private sector partners no longer originate loans, the fee is no longer necessary.
“We should do what we can to ease the burden on American students, and removing this unnecessary tax on student borrowers won’t cost a thing,” said Senator Braun. “I’m proud to lead this bipartisan bill to eliminate a tax that is not good for borrowers or taxpayers.”
Representative Lloyd Smucker introduced the companion legislation in the House of Representatives. You can view the text of the bill online here.