Senator’s bipartisan bill endorsed by Arizona Education Association aims to lessen burden on students and families borrowing for college
WASHINGTON – Arizona senior Senator Kyrsten Sinema today joined Republican Senator Mike Braun (Ind.) to introduce the Student Loan Tax Elimination Act, bipartisan legislation that eliminates federal student loan origination fees, increasing the affordability of education and lessening the burden on students borrowing for college.
“Education was my key to opportunity. Our bill eliminates burdensome federal student loan fees, helping Arizona families better afford college and increasing opportunities available to Arizona students,” said Sinema.
“The Arizona Education Association is excited to see legislation moving forward that addresses concerns surrounding loan origination fees. As student borrowers work towards achieving a higher education, it is important that student aid protections are in place that allow for a simplified repayment process for those in most need of financial assistance,” said the Arizona Education Association.
Origination fees are charged by a lending bank when it processes a student loan. The fees are typically a percentage of the total amount a student borrows. In the case of federal student loans, the federal government charges students origination fees directly.
An estimated one-third of Arizona students graduate with an average of $24,000 in student loan debt, and the average undergraduate student in a four-year program will pay an estimated $235 in fees and associated interest on student loans.
Recently, Senator Sinema introduced the bipartisan Employer Participation in Repayment Act, which allows employers who help their employees pay off student loans to receive a tax exemption. Sinema also championed the Employer Participation in Student Loan Assistance Act in the U.S. House in 2017.