LOAN Act

Lowering Obstacles to Achievement Now Act or the LOAN Act

This bill makes various changes to federal student aid programs, including the Federal Pell Grant program and the Public Service Loan Forgiveness (PSLF) program.

Specifically, the bill revises the Federal Pell Grant program by

• providing funding to increase the maximum Pell Grant award for each eligible student,
• requiring the award amount to be adjusted for inflation,
• allowing students who receive means-tested federal benefits (e.g., Medicaid) to automatically qualify for the maximum Pell Grant award plus an additional award amount,
• raising from 12 to 18 the total number of semesters during which a student may receive a Pell Grant, and
• allowing income-eligible graduate students who received Pell Grants during their undergraduate education to utilize their remaining Pell Grant eligibility toward their first graduate degree.

Additionally, the bill revises the PSLF program by

• reducing the number of monthly loan payments required for loan forgiveness, and
• removing the requirement that a borrower must be employed in a public service job at the time of loan forgiveness.

The bill makes Dreamer students (i.e., students who have been granted Deferred Action for Childhood Arrivals status) who entered the United States before the age of 18 and who meet certain educational criteria eligible for federal financial aid.

The bill also (1) establishes refinancing programs for federal student loans and private student loans; and (2) repeals origination fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

The Loan Opportunities for American Nationals (LOAN) Act, also known as Bill 118 hr 1731, was introduced in the US Congress with the aim of providing financial assistance to American citizens who are in need of loans for various purposes. The bill seeks to create a loan program that would offer low-interest loans to individuals who may not qualify for traditional bank loans.

Under the LOAN Act, eligible individuals would be able to apply for loans through a designated government agency, which would assess their financial situation and determine the amount of the loan they qualify for. The loans would have a low interest rate, making them more accessible to those in need of financial assistance.

The bill also includes provisions for loan forgiveness for individuals who meet certain criteria, such as working in a designated public service field or experiencing financial hardship. This would help alleviate the burden of debt for those who are struggling to repay their loans. Overall, the LOAN Act aims to provide a helping hand to American citizens who are in need of financial assistance, by offering low-interest loans and opportunities for loan forgiveness. It is designed to be a non-partisan solution to address the financial needs of individuals who may not qualify for traditional bank loans.