S. 4097

119 S4097 IS: State-Based Education Loan Awareness Act
 U.S. Senate
 2026-03-16
 text/xml
 EN
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 II  119th CONGRESS  2d Session  S. 4097  IN THE SENATE OF THE UNITED STATES   March 16, 2026   Ms. Murkowski  (for herself,  Mr. Reed ,  Mr. Cassidy , and  Mrs. Shaheen ) introduced the following bill; which was read twice and referred to the  Committee on Health, Education, Labor, and Pensions    A BILL
To establish that a State-based education loan program is excluded from certain requirements relating to a preferred lender arrangement.
1.
Short title
This Act may be cited as the   State-Based Education Loan Awareness Act  .
2.
State-based education loan programs
Section 151 of the Higher Education Act of 1965 ( 20 U.S.C. 1019 ) is amended—
(1)
in paragraph (8)(B)—
(A)
in clause (i), by striking  or  after the semicolon;
(B)
in clause (ii), by striking the period at the end and inserting  ; or ; and
(C)
by adding at the end the following:
(iii)
arrangements or agreements with respect to education loans made under a State-based education loan program.
  ; and
(2)
by adding at the end the following:
(10)
State-based education loan program
The term  State-based education loan program  means an education loan program that—
(A)
is provided by a State agency, State authority, or nonprofit organization, separately or jointly;
(B)
makes loans that are not funded, insured, or guaranteed by the Federal Government;
(C)
is authorized, established, or chartered by State law, or otherwise approved by the State;
(D)
offers one or more loans for which the interest rate and fees, as calculated in accordance with sections 106 and 107 of the Truth in Lending Act ( 15 U.S.C. 1605 ; 1606), are at least as favorable as the interest rate and fees of the Direct PLUS loans authorized under part D of title IV at the time such loan is originated; and
(E)
is available only to a borrower who has been advised, such as in a financial aid offer, by an institution of higher education (as defined under section 102)—
(i)
that the borrower has the opportunity to exhaust eligibility for Federal education loans made under part D of title IV prior to accepting a private education loan; and
(ii)
of the interest rates, fees, and benefits of such Federal education loans, including income-driven repayment options, opportunities for loan forgiveness, forbearance or deferment options, interest subsidies, and tax benefits.
 .