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Student Loan Reform: No Interest, New Fees, and Income-Driven Repayment

This act significantly changes federal student loans by eliminating traditional interest and replacing it with one-time financing fees. It also introduces a new income-dependent repayment plan, aiming to make debt management easier for students after graduation.
Key points
No more interest: New federal student loans will not accrue interest; instead, a one-time financing fee of 20% or 35% of the loan amount will be charged at disbursement.
Fee refunds for early repayment: Borrowers may receive a partial refund of the financing fee for early loan repayment, depending on their income level.
Income-driven repayment: A new repayment plan is introduced where monthly payments are 10% of income exceeding 150% of the federal poverty line, adjusting payments to financial capacity.
Automatic tax data sharing: The Treasury Department will share income data with the Department of Education to automatically determine repayment obligations and fee adjustments.
Financial hardship provisions: The act allows for payment adjustments in cases of unforeseen, extreme financial hardship unrelated to changes in annual income.
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Expired
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Additional Information
Print number: 117_HR_8472
Sponsor: Rep. Luria, Elaine G. [D-VA-2]
Process start date: 2022-07-21
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

LOAN Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_8472.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-07-21.

What are the main provisions?

Key points include:

  • No more interest: New federal student loans will not accrue interest; instead, a one-time financing fee of 20% or 35% of the loan amount will be charged at disbursement.
  • Fee refunds for early repayment: Borrowers may receive a partial refund of the financing fee for early loan repayment, depending on their income level.
  • Income-driven repayment: A new repayment plan is introduced where monthly payments are 10% of income exceeding 150% of the federal poverty line, adjusting payments to financial capacity.
  • Automatic tax data sharing: The Treasury Department will share income data with the Department of Education to automatically determine repayment obligations and fee adjustments.
  • Financial hardship provisions: The act allows for payment adjustments in cases of unforeseen, extreme financial hardship unrelated to changes in annual income.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Luria, Elaine G. [D-VA-2].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

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