<p>Thank you for your consideration in supporting PASFAA's campaign to see the Student Loan Tax Elimination Act (H.R. 3165) passed! The elimination of student loan origination fees has been a longtime effort that PASFAA as well as other organizations like NASFAA have advocated on behalf of. We appreciate Congressman Smucker's continued advocacy on this issue and we hope you will add your voice to this important issue.</p>


Support for the Student Loan Tax Elimination Act (H.R. 3165)

My name is (Insert your name here) and I am a (Position) at (institution), a member of PASFAA, and one of your local constituents. I write to you today to express my support of the Student Loan Tax Elimination Act (H.R. 3165), introduced by Congressman Smucker, and ask that you consider my perspective when deciding how to vote on the matter.

The Higher Education Act of 1965, as amended, requires an origination fee of one percent for all Direct Subsidized Loans, and a fee of four percent for all Direct PLUS Loans for both parents and graduate/professional students.

These fees tend to add unnecessary cost and confusion to the student loan process. Financial aid offices must deduct the fee when originating loans (currently at 1.057%) from the gross amount disbursed to their students. This amount reduces the amount of the loan that the student actually receives which may lead to an unexpected/higher balance due to their institution. Students then must repay the full amount of the loan, including the loan fee, after they have graduated or withdrawn from school. For many students and families, this creates an inability to properly predict what their loan balances will be upon graduation or if they withdraw. Removing these fees would be a step in the right direction by simplifying the process and helping to reduce the cost of borrowing.

I thank you for your time and consideration, and I welcome any questions that may come up as part of this. If you would like to get in touch with PASFAA regarding this issue, you may email them at governmentrelations@pasfaa.org.