[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4097 Reported in Senate (RS)]
<DOC>
Calendar No. 539
119th CONGRESS
2d Session
S. 4097
To establish that a State-based education loan program is excluded from
certain requirements relating to a preferred lender arrangement.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 16, 2026
Ms. Murkowski (for herself, Mr. Reed, Mr. Cassidy, Mrs. Shaheen, Mr.
Sullivan, Mr. Lankford, and Mr. Grassley) introduced the following
bill; which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
August 4, 2026
Reported by Mr. Cassidy, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To establish that a State-based education loan program is excluded from
certain requirements relating to a preferred lender arrangement.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``State-Based Education Loan
Awareness Act''.</DELETED>
<DELETED>SEC. 2. STATE-BASED EDUCATION LOAN PROGRAMS.</DELETED>
<DELETED> Section 151 of the Higher Education Act of 1965 (20 U.S.C.
1019) is amended--</DELETED>
<DELETED> (1) in paragraph (8)(B)--</DELETED>
<DELETED> (A) in clause (i), by striking ``or''
after the semicolon;</DELETED>
<DELETED> (B) in clause (ii), by striking the period
at the end and inserting ``; or''; and</DELETED>
<DELETED> (C) by adding at the end the
following:</DELETED>
<DELETED> ``(iii) arrangements or agreements
with respect to education loans made under a
State-based education loan program.'';
and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(10) State-based education loan program.--The
term `State-based education loan program' means an education
loan program that--</DELETED>
<DELETED> ``(A) is provided by a State agency, State
authority, or nonprofit organization, separately or
jointly;</DELETED>
<DELETED> ``(B) makes loans that are not funded,
insured, or guaranteed by the Federal
Government;</DELETED>
<DELETED> ``(C) is authorized, established, or
chartered by State law, or otherwise approved by the
State;</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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)--</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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.''.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``State-Based Education Loan Awareness
Act''.
SEC. 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 Federal 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 in section
102)--
``(i) that the borrower should exhaust
Federal student loan eligibility 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.''.
SEC. 3. GAO REPORT ON CHANGES IN TRENDS OF STUDENT LOAN BORROWERS.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Comptroller General of the United States shall prepare
and submit a report to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and Workforce of
the House of Representatives on changes in trends of student loan
borrowers at institutions of higher education.
(b) Areas of Examination.--The report required under subsection (a)
shall examine, in particular--
(1) the implementation of student loan changes made by the
amendments made under title VIII of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res.
14'' (Public Law 119-21; 139 Stat. 72), including--
(A) the average total amount borrowed by students,
disaggregated by source, including the aggregate total
combined amount of Federal, State-based, institutional,
and private education loans;
(B) changes during the 2-year period following the
effective dates of the changes made by the amendments
made under such title VIII in the rates of borrowing--
(i) Federal, State-based, institutional,
and private education loans for undergraduate
and graduate borrowers; and
(ii) on behalf of dependent students under
the Federal Direct PLUS Loan program under part
D of title IV of the Higher Education Act of
1965 (20 U.S.C. 1087a et seq.); and
(C) the average amount borrowed in Federal, State-
based, institutional, and private education loans,
disaggregated by--
(i) enrollment status as a first-time
student or non-first-time student;
(ii) enrollment status as a full-time
student or part-time student;
(iii) type of degree or certificate sought
by the student for whom the loan was awarded;
(iv) Federal Pell Grant recipient status
under section 401 of the Higher Education Act
of 1965 (20 U.S.C. 1070a); and
(v) program of study of the student for
whom the loan was awarded;
(2) the availability of State-based education loan programs
(as defined in section 151 of the Higher Education Act of 1965
(20 U.S.C. 1019)) for students or parents of students at
institutions of higher education, including the extent to which
States expand existing or create new State-based education loan
programs;
(3) the differences in interest rates for Federal, State-
based, institutional, and private education loans;
(4) the extent to which students or parents of students
borrow both Federal education loans and State-based education
loans, institutional education loans, or private education
loans, or some combination thereof; and
(5) changes in outcomes for borrowers of Federal, State-
based, institutional, and private education loans, both in the
aggregate and disaggregated, to the extent practicable, by--
(A) type of institution of higher education
(whether public, private nonprofit, or proprietary);
(B) program of study;
(C) repayment rate;
(D) delinquency rate;
(E) default rate;
(F) use of deferment or forbearance; and
(G) rate of principal reduction.
Calendar No. 539
119th CONGRESS
2d Session
S. 4097
_______________________________________________________________________
A BILL
To establish that a State-based education loan program is excluded from
certain requirements relating to a preferred lender arrangement.
_______________________________________________________________________
August 4, 2026
Reported with an amendment