LOAN Act

Summary

Lowering Obstacles to Achievement Now Act or the LOAN Act This bill revises federal student aid programs, including the Federal Pell Grant program and the Public Service Loan Forgiveness (PSLF) program. It also repeals the education provisions that were enacted under P.L. 119-21 (commonly known as the One Big Beautiful Bill Act). Among other provisions, the bill revises the Federal Pell Grant program by (1) providing funding to increase the maximum award for each eligible student, and (2) allowing income-eligible graduate students to utilize their remaining Pell Grant eligibility toward their first graduate degree. Changes to the PSLF program include (1) reducing the number of monthly loan payments required for loan forgiveness, and (2) removing the requirement that a borrower must be employed in a public service job at the time of forgiveness. The bill makes Dreamer students (i.e., students who have been granted Deferred Action for Childhood Arrivals status and who entered the United States before the age of 18) who meet certain educational criteria eligible for federal financial aid. The bill also (1) establishes refinancing programs for federal and private student loans; (2) creates a new income-driven repayment plan; and (3) repeals origination fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans. The bill repeals the education provisions that were enacted under P.L. 119-21. For example, the act addressed the amount of federal financial aid available to students by changing the mix and availability of student loans. (For more information, see CRS Report R48727 .)

Summary from the Congressional Research Service. How we handle summaries

Where it stands

Assigned to a committee for review.

House Committee on Education and Workforce · U.S. House of Representatives

Also referred to House Committee on the Budget · U.S. House of Representatives, Senate Committee on the Budget · U.S. Senate.

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Cosponsors

Related bills

• H.R. 2829SERVICE ActRelated bill

As identified by Congress.gov.

Full history

1. Sep 9, 2025

   Introduced

   Introduced in U.S. House

   U.S. House

2. Aug 1, 2025

   Introduced

   Introduced in House

   U.S. House of Representatives

3. Aug 1, 2025

   In committee

   Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, 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.

   U.S. House

4. Aug 1, 2025

   Referred to committee

   Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, 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.

5. Aug 1, 2025

   Referred to committee

   Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, 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.

Read the record

• Read on Congress.gov (opens in a new tab) The official record on Congress.gov.