Student Loan Bond Expansion Act of 2026

Lower-cost bonds for student loans

This bill would exempt qualified student loan bonds from the federal private-activity bond volume cap. It would also say qualified student loan bonds issued after enactment would not count as private activity bonds for Alternative Minimum Tax calculations. For pooled financings, student borrowers would not be treated as "ultimate borrowers" for those bonds. The AMT exception would not apply to a refunding bond unless it applied to the refunded (or original) bond. These changes would apply only to obligations issued after the date of enactment. This would make it easier or cheaper for issuers and investors to finance qualified student loans and would indirectly help borrowers.