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S. 4097119th Congress
Official title: State-Based Education Loan Awareness Act
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
Colleges could form preferred-lender deals with state loan programs if they meet cost and disclosure conditions.
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This bill creates an exception to rules limiting "preferred lender" partnerships between colleges and private loan companies, allowing such arrangements with state-run or state-affiliated nonprofit loan programs. To qualify, these programs must not be federally funded or backed, must be authorized by state law, and must offer rates and fees at least as good as federal Direct PLUS loans. Colleges could only recommend these loans after students are told about their federal loan options, including income-based repayment and forgiveness programs.
This affects college students and families seeking financial aid, state governments running education loan programs, and colleges that help students find loans.
The change could expand the loan options colleges are permitted to promote, depending on how many states operate qualifying programs and how colleges use the new flexibility.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.