# 119-s-4943: Outcomes-Based Financing (OBF) for Students Act 119-s-4943, Outcomes-Based Financing (OBF) for Students Act, is a 119th Congress bill sponsored by Sen. Young, Todd [R-IN] (R-IN); status introduced; PRIA reads it as touching household money (as of 2026-07-18). - Canonical: https://policyrisk.com/legislation/119-s-4943 - As of: 2026-07-18 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-s-4943 - Congress: 119 - Title: Outcomes-Based Financing (OBF) for Students Act - Status: introduced - Introduced: 2026-06-24 - Sponsor: Sen. Young, Todd [R-IN] (R-IN) - Cosponsors: 2 - Policy area: Finance and Financial Sector - Touches household money: yes - Last recorded action: 2026-07-18 ## Summary **This bill would set federal rules for outcomes-based education financing, with a central goal of _capping how much of future income a recipient can be required to pay_.** It would define outcomes-based products, limit payments and pricing, require strong disclosures, and change tax and bankruptcy treatment for these arrangements. - Students and families: Limits an individual's OBF payment to no more than 20% of their income at any time and requires an income threshold no less than 250% of the federal poverty guideline before payments are due. It also bars payments when income is below the threshold. - Providers and pricing: Restricts effective APRs for recipients at or below 350% of the poverty line to 8% plus the high yield on the 10-year Treasury. It caps payment counts at 240 monthly payments and duration at 360 months unless a consumer asks to extend. - Regulators, schools, and reporting: Directs the Consumer Financial Protection Bureau to issue model disclosures and rules within 270 days, adds a new Fair Credit Reporting Act rule on how OBFs appear on credit reports, and amends the Higher Education Act and tax code for OBF treatment. ## Cosponsors (2) - Sen. Warner, Mark R. [D-VA] (D-VA), 2026-06-24T00:00:00.000Z - Sen. Coons, Christopher A. [D-DE] (D-DE), 2026-06-24T00:00:00.000Z ## Provisions PRIA read - Stronger payment limits for students: benefit, high. If enacted, this bill would cap OBF payments so you never pay more than 20% of your income at any time. It would set a minimum income threshold of at least 250% of the federal poverty line and require providers to add up future OBF burdens up to a statutory maximum ($70,000 for FY2025, then CPI-U i… - Tax relief for OBF students and helpers: benefit, high. If enacted, the bill would say forgiven or altered OBF obligations are not taxable income for taxpayers for tax years after enactment. It would let some excess payments under outcomes-based agreements count as student loan interest for the student loan interest deduction when the money paid qualifi… - Tax timing change for OBF providers: benefit, medium. If enacted, the bill would let OBF providers exclude from gross income amounts received that do not exceed the remaining financed principal. The rule would apply for taxable years beginning after enactment. This change would let providers defer reporting some receipts as taxable income and could af… - New disclosure and reporting rules: mixed, medium. If enacted, the bill would require the Consumer Financial Protection Bureau to publish model disclosures and write rules for OBF products within 270 days. Ads, applications, approvals, and closings would need clear facts, comparison tables using a $10,000 baseline, income scenarios, and a warning t… - Federal rules that override state limits: mixed, medium. If enacted, the bill would set federal rules for OBF products and preempt many state laws that conflict with those rules. The federal rules include a 20% income cap, a 250% of poverty minimum income threshold, a 240-payment limit, and a 360-month maximum duration. States could avoid preemption only… - Limits on proprietary college OBF accounting: mixed, low. If enacted, the bill would limit how proprietary (for-profit) colleges count OBF payments under the Higher Education Act. For OBF products they make, only payments received in the school's fiscal year would count, and only up to the amount financed under the product. This change affects school repo… ## Related bills - 119-s-1748: Kids Online Safety Act - 119-s-789: Critical Minerals Security Act of 2025 - 119-s-1686: Neighborhood Homes Investment Act - 119-s-1639: American Innovation and Jobs Act - 119-s-1241: Sanctioning Russia Act of 2025 - 119-s-199: A bill to amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the… ## Sources - [119-s-4943 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4943) ## Related - [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748) - [119-s-789: Critical Minerals Security Act of 2025](https://policyrisk.com/legislation/119-s-789) - [119-s-1686: Neighborhood Homes Investment Act](https://policyrisk.com/legislation/119-s-1686) - [119-s-1639: American Innovation and Jobs Act](https://policyrisk.com/legislation/119-s-1639) - [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241) - [119-s-199: A bill to amend the Internal Revenue Code of 1986 to provide special rules for…](https://policyrisk.com/legislation/119-s-199) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-s-4943 (as of 2026-07-18).