I 
117TH CONGRESS 
2D SESSION 
H. R. 8472 
To amend the Higher Education Act of 1965 to provide for Federal student 
loan reform. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 21, 2022 
Mrs. LURIA introduced the following bill; which was 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 jurisdic-
tion of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to provide 
for Federal student loan reform. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Leveraging Opportuni-
ties for Americans Now Act of 2022’’ or the ‘‘LOAN Act 
of 2022’’. 
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SEC. 2. ELIMINATION OF INTEREST AND REPLACEMENT 
WITH FINANCING FEES. 
Section 455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e) is amended by adding at the end the fol-
lowing: 
‘‘(r) ELIMINATION OF INTEREST AND REPLACEMENT 
WITH FINANCING FEES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN
GENERAL.—Except as provided 
under subparagraph (B), beginning on July 1, 
2022, the Secretary shall make loans under this 
part in accordance with this subsection. 
‘‘(B) EXCEPTION.—Beginning on July 1, 
2022, the Secretary shall make loans under this 
part in accordance with the provisions of this 
part other than this subsection to a borrower 
who— 
‘‘(i) was enrolled in an institution of 
higher education on June 30, 2022; and 
‘‘(ii) elects to borrow a loan under 
this part in accordance with the provisions 
of this part other than this subsection. 
‘‘(2) ELIMINATION
OF
INTEREST.—For loans 
made under this part in accordance with this sub-
section for which the first disbursement is made on 
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or after July 1, 2022, the applicable rate of interest 
shall be equal to 0 percent. 
‘‘(3) FINANCING FEES.— 
‘‘(A) IN GENERAL.—Beginning on July 1, 
2022, the Secretary shall charge the borrower 
of a loan made under this part in accordance 
with this subsection a financing fee determined 
in accordance with this paragraph and issued 
on the date the loan is dispersed. 
‘‘(B) DETERMINATION
OF
FEE.—The fi-
nancing fee for a borrower of a loan made 
under this part— 
‘‘(i) that is used for enrollment in an 
undergraduate course of study (except a 
Federal Direct PLUS Loan made on be-
half of a dependent student), shall be equal 
to, from the principal amount of the loan, 
20 percent of the amount of such loan; 
‘‘(ii) that is used for enrollment in a 
course of study necessary for enrollment in 
a program leading to a degree or certifi-
cate, shall be equal to, from the principal 
amount of the loan, 20 percent of the 
amount of such loan; 
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‘‘(iii) that is used for enrollment in a 
program that is necessary for a profes-
sional credential or certification from a 
State that is required for employment as a 
teacher in an elementary or secondary 
school in that State, shall be equal to, 
from the principal amount of the loan, 20 
percent of the amount of such loan; and 
‘‘(iv) that is a Federal Direct PLUS 
Loan made on behalf of a dependent stu-
dent or used for enrollment in a graduate 
or professional course of study, shall be 
equal to, from the principal amount of the 
loan, 35 percent of the amount of such 
loan. 
‘‘(C) REDUCTION DUE TO PREPAYMENT.— 
‘‘(i) IN GENERAL.—In order to pro-
vide an incentive to borrowers to pay the 
balance of a loan made under this part 
earlier than required under the applicable 
repayment plan, the Secretary may credit 
or refund any such borrowers for an 
amount of the financing fee charged under 
this subsection. 
‘‘(ii) REGULATIONS.— 
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‘‘(bb) 150 percent of the 
poverty line applicable to the bor-
rower’s family size as determined 
under section 673(2) of the Com-
munity Services Block Grant Act 
(42 U.S.C. 9902(2)). 
‘‘(D) METHODOLOGY OF PAYMENT.—The 
Secretary shall establish an amortization sched-
ule for the repayment of financing fees charged 
under this subsection. 
‘‘(4) RULEMAKING FOR CONSOLIDATION.—Not 
later than 18 months after the date of enactment of 
the LOAN Act of 2022, the Secretary shall promul-
gate rules regarding Federal Direct Consolidation 
Loans made under this part in accordance with this 
subsection, including a rule that the financing fee 
for such a Federal Direct Consolidation Loan deter-
mined in accordance with this subsection shall not 
exceed the sum of the financing fees applicable to 
the consolidated loans.’’. 
SEC. 3. INCOME DEPENDENT EDUCATION ASSISTANCE RE-
PAYMENT PLAN. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
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‘‘SEC. 460A. INCOME DEPENDENT EDUCATION ASSISTANCE 
REPAYMENT PLAN. 
‘‘(a) IN GENERAL.— 
‘‘(1) 
APPLICABILITY.—Notwithstanding 
any 
other provision of this Act, with respect to any loan 
made under this part after the date of enactment of 
the LOAN Act of 2022, the repayment plan options 
are only a 10-year fixed repayment plan and the re-
payment plan under this section. If the borrower of 
the loan does not select a repayment plan, the repay-
ment of such loan shall be made in accordance with 
this section. A borrower of a loan made under this 
part after the date of enactment of the LOAN Act 
of 2022 may affirmatively select the repayment plan 
under this section. 
‘‘(2) REGULATIONS.—Not later than 18 months 
after the date of enactment of the LOAN Act of 
2022, the Secretary shall promulgate rules— 
‘‘(A) outlining how the Department will 
implement the income dependent education as-
sistance repayment plan requirements for bor-
rowers under this section; and 
‘‘(B) regarding monthly repayment proc-
esses for borrowers of loans made under this 
part before the date of enactment of the LOAN 
Act of 2022. 
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‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed to eliminate or other-
wise affect the loan forgiveness or loan cancellation 
options available under this part to a borrower. 
‘‘(b) DUTIES OF THE SECRETARY OF THE TREAS-
URY.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall, with respect to each individual for 
whom a loan made under this part after the date of 
enactment of the LOAN Act of 2022 is in repay-
ment status, transmit to the Secretary of Edu-
cation— 
‘‘(A) in the case of such an individual who 
files an income tax return for such taxable year, 
such tax information as is necessary to deter-
mine the individual’s repayment obligation and 
financing fee adjustments, as determined by the 
Secretary under this part; and 
‘‘(B) in the case of any such individual 
who does not file a return for such taxable year, 
any available tax information of the individual 
as may be necessary to determine such obliga-
tion and whether such individual is delinquent 
under the terms of such loan for not so filing. 
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‘‘(2) ADDITIONAL PROGRAM REQUIREMENTS.— 
The Secretary of the Treasury shall establish such 
other policies, procedures, and guidance as may be 
necessary to carry out the purposes of this section, 
including measures to prevent underreporting and 
evasion of repayment or filing. 
‘‘(c) DUTIES OF THE SECRETARY OF EDUCATION.— 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out, as part of the loan repayment plan established 
under this section, the following activities: 
‘‘(A) CALCULATION
OF
ANNUAL
REPAY-
MENT AMOUNTS.—The Secretary shall calculate 
the annual repayment amount under this sec-
tion for borrowers with 1 or more loans made 
under this part after the date of enactment of 
the LOAN Act of 2022 in repayment status for 
one or more months in the taxable year for 
which the amount is determined regardless of 
which repayment plan the borrower is in, in-
cluding the repayment obligations of such bor-
rowers in accordance with subsection (d)(3). 
‘‘(B) COMMUNICATION
WITH
THE
SEC-
RETARY
OF
THE
TREASURY.—The Secretary 
shall transmit to the Secretary of the Treasury 
such information as is necessary for the Sec-
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retary of the Treasury to carry out subsection 
(d)(3). 
‘‘(C) ANNUAL STATEMENTS.—Upon calcu-
lating the annual repayment amounts under 
subparagraph (A) for a taxable year, the Sec-
retary shall provide a statement, on an annual 
basis, to each borrower with a loan made under 
this part after the date of enactment of the 
LOAN Act of 2022 regardless of which repay-
ment plan the borrower is in, which lists the 
following: 
‘‘(i) Total payments made on the bor-
rower’s annual repayment amount for such 
taxable year. 
‘‘(ii) The borrower’s annual repay-
ment amount for such taxable year. 
‘‘(iii) The outstanding balances on all 
the loans made to the borrower under this 
part after the date of enactment of the 
LOAN Act of 2022 and any other out-
standing balances on loans of the borrower 
that were made, insured, or guaranteed 
under this title. 
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‘‘(iv) A description of how the bor-
rower’s annual repayment amount was cal-
culated. 
‘‘(D) PAYMENTS ON A BORROWER’S BE-
HALF.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall— 
‘‘(I) provide a mechanism for 
other individuals or entities to make 
payments on the annual repayment 
amount of a borrower for a taxable 
year; and 
‘‘(II) notify the borrower that 
any payments made under subclause 
(I) for the taxable year that exceed 
the annual repayment amount for the 
year shall not be refunded to the bor-
rower, except as provided through the 
appeals process described in clause 
(ii). 
‘‘(ii) APPEALS
PROCESS.—The Sec-
retary shall make available a process 
through which a borrower can appeal for 
refund of payments made under clause (i) 
that exceed the annual repayment amount 
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