H.R.4603 - Leveraging Opportunities for Americans Now Act of 2019116th Congress (2019-2020)
|Sponsor:||Rep. Carbajal, Salud O. [D-CA-24] (Introduced 10/04/2019)|
|Committees:||House - Education and Labor; Ways and Means|
|Latest Action:||House - 10/04/2019 Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (All Actions)|
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Summary: H.R.4603 — 116th Congress (2019-2020)All Information (Except Text)
Introduced in House (10/04/2019)
Leveraging Opportunities for Americans Now Act of 2019 or the LOAN Act of 2019
This bill revises interest rates and repayment plans for federal student loans.
Specifically, the bill directs the Department of Education (ED) to set the interest rate on federal student loans made on or after July 1, 2021, at 0% and replace the interest with a one-time financing fee.
The bill permits ED to credit or refund borrowers who pay the balance of their loan earlier than required by their repayment plan with the amount of the financing fee.
The bill establishes an income-dependent education assistance repayment plan as the default repayment plan for federal student loans. A borrower may select either this new plan or a 10-year fixed repayment plan.
ED must calculate annual repayment amounts and provide annual statements to borrowers.
The Department of the Treasury must transmit tax information to ED as necessary to determine a borrower's repayment obligations and financing fee adjustments.