1. Short title This Act may be cited as the Leveraging Opportunities for Americans Now Act of 2023 or the LOAN Act of 2023 . 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 following: (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, 2024, the Secretary shall make loans under this part in accordance with this subsection. (B) Exception Beginning on July 1, 2024, 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, 2024; 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 subsection for which the first disbursement is made on or after July 1, 2024, the applicable rate of interest shall be equal to 0 percent. (3) Financing fees (A) In general Beginning on July 1, 2024, 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 financing 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 behalf 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 certificate, shall be equal to, from the principal amount of the loan, 20 percent of the amount of such loan