I 
118TH CONGRESS 
2D SESSION 
H. R. 8243 
To establish that a State-based education loan program is excluded from 
certain requirements relating to a preferred lender arrangement. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2024 
Mr. SESSIONS introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To establish that a State-based education loan program is 
excluded from certain requirements relating to a pre-
ferred lender arrangement. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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)— 
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(A) in clause (i), by striking ‘‘or’’ after the 
semicolon; 
(B) in clause (ii), by striking the period at 
the end and inserting a semicolon; 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 pro-
gram; or 
‘‘(iv) arrangements or agreements 
with respect to education loans funded, in-
sured, or guaranteed by any other Federal 
agency that is not the Department of Edu-
cation.’’; and 
(2) by adding at the end the following: 
‘‘(10) STATE-BASED
EDUCATION
LOAN
PRO-
GRAM.—The term ‘State-based education loan pro-
gram’ 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, in-
sured, or guaranteed by the Federal Govern-
ment; 
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‘‘(C) is authorized, established, or char-
tered 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 ac-
cordance 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 origi-
nated; and 
‘‘(E) is available only to a borrower who 
has been advised by an institution of higher 
education (as defined under section 102)— 
‘‘(i) that the borrower has the oppor-
tunity to exhaust eligibility for Federal 
education loans made 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, forbear-
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ance or deferment options, interest sub-
sidies, and tax benefits.’’. 
Æ 
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