State-Based Education Loan Awareness Act
Sponsored By: Senator Murkowski, Lisa [R-AK]
Introduced
Summary
Creates a clear federal definition of "State-based education loan programs". This bill would add that definition to the Higher Education Act and treat arrangements with qualifying state programs as part of the law's preferred lender rules.
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- Borrowers: Colleges would need to advise students to exhaust federal Direct loans first and tell them the rates, fees, income-driven repayment options, loan forgiveness paths, forbearance or deferment choices, and tax benefits before a state loan is offered.
- State programs and providers: Only state agencies, state authorities, or nonprofit organizations whose loans are not funded, insured, or guaranteed by the federal government and that are authorized by state law would qualify, and their rates and fees must be at least as favorable as Direct PLUS loans at origination.
- Colleges and lender arrangements: Institutions would include arrangements or agreements with qualifying state-based programs within the Higher Education Act's preferred lender framework.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New rules for state student loans
This bill would create a legal definition for a "State-based education loan program." To qualify, a program would have to be run by a State agency, authority, or nonprofit and not be funded, insured, or guaranteed by the Federal Government. Loans would need rates and fees at least as favorable as Direct PLUS loans at origination, calculated under the Truth in Lending Act. Borrowers could get these loans only after their school advised them to exhaust federal Title IV loan options first and gave them information on federal rates, fees, repayment plans, forgiveness, forbearance, subsidies, and tax benefits. The bill would also treat arrangements for these state loans as covered by the statute's preferred-lender rules. It would take effect when enacted.
Sponsors & CoSponsors
Sponsor
Murkowski, Lisa [R-AK]
AK • R
Cosponsors
Sen. Reed, Jack [D-RI]
RI • D
Sponsored 3/16/2026
Sen. Cassidy, Bill [R-LA]
LA • R
Sponsored 3/16/2026
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 3/16/2026
Dan Sullivan
AK • R
Sponsored 3/25/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov