State-based Education Loan Awareness Act

Bill: 116-s-3054
Sponsor: full_name: Sen. Murkowski, Lisa [R-AK]
Introduced: 2019-12-16
Policy area: Education
Subjects: Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

State and local government operations

Student aid and college costs
Latest action: action_date: 2019-12-16
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2019-12-16
action_desc: Introduced in Senate
text: <p><b>State-based Education Loan Awareness Act</b></p> <p>This bill excludes certain arrangements or agreements regarding education loans from the definition of a <i>preferred lender arrangement</i>.</p> <p>A preferred lender arrangement is an arrangement or agreement between a lender and an institution of higher education (IHE) that receives federal funding or assistance (1) under which a lender issues education loans to students attending the IHE; and (2) that relates to the IHE recommending, promoting, or endorsing the education loan products of the lender.</p> <p>The bill provides that arrangements or agreements made under a state-based education loan program or that are funded, insured, or guaranteed by any federal agency other than the Department of Education do not meet the definition of a preferred lender agreement for purposes of certain required disclosures to student borrowers. </p>

tv_txt: II 116th CONGRESS 1st Session S. 3054 IN THE SENATE OF THE UNITED STATES December 16, 2019 Ms. Murkowski (for herself, Mr. Reed , and Mr. Braun ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To establish that a State-based education loan program is excluded from certain requirements relating to a preferred lender arrangement.

1. Short title This Act may be cited as the State-based Education Loan Awareness Act . 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 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 program; or (iv) arrangements or agreements with respect to education loans funded, insured, or guaranteed by any other Federal agency that is not the Department of Education. ; 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 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 by an institution of higher education (as defined under section 102)— (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 (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. .