What This Bill Does · Plain English
Summary · Congress.gov
State-Based Education Loan Awareness Act This bill excludes certain arrangements or agreements regarding education loans from the definition of a preferred lender arrangement . 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. The bill provides that arrangements or agreements made under a state-based education loan program do not meet the definition of a preferred lender agreement for purposes of certain required disclosures to student borrowers.
Action Timeline
2026-03-19
Committee on Health, Education, Labor, and Pensions. Hearings held.
2026-03-16
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
2026-03-16
Introduced in Senate
Frequently Asked Questions
Did S.4097 pass?
S.4097 is still alive. Current stage: REPORTED. Pass likelihood: pending.
What does S.4097 do?
State-Based Education Loan Awareness Act This bill excludes certain arrangements or agreements regarding education loans from the definition of a preferred lender arrangement . 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. The bill provides that arrangements or agreements made under a …
Who sponsored S.4097?
S.4097 was sponsored by Lisa Murkowski (R-Alaska).
Full Bill Text
119 S4097 IS: State-Based Education Loan Awareness Act U.S. Senate 2026-03-16 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 2d Session S. 4097 IN THE SENATE OF THE UNITED STATES March 16, 2026 Ms. Murkowski (for herself, Mr. Reed , Mr. Cassidy , and Mrs. Shaheen ) 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 ; or ; 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. ; 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, such as in a financial aid offer, 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. .
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