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State Student Loans: New Rules and Mandatory Federal Option Disclosure.

This law changes rules for state-based education loan programs, exempting them from certain requirements regarding how colleges recommend lenders. Crucially, it mandates that before a student accepts a state-based loan, the college must fully inform them about all available Federal loan options, including income-driven repayment and loan forgiveness opportunities. This ensures students prioritize safer Federal options first before opting for state-based loans.
Key points
State-based student loan programs (not federally funded) are excluded from specific disclosure rules related to preferred lender arrangements.
Colleges must now mandatorily advise students about all benefits of Federal loans (like income-driven repayment and forgiveness) before the student accepts a state-based loan.
State-based loans must offer interest rates and fees that are at least as favorable as Federal Direct PLUS loans.
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Expired
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Additional Information
Print number: 118_HR_8243
Sponsor: Rep. Sessions, Pete [R-TX-17]
Process start date: 2024-05-06
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

State-Based Education Loan Awareness Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8243.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-05-06.

What are the main provisions?

Key points include:

  • State-based student loan programs (not federally funded) are excluded from specific disclosure rules related to preferred lender arrangements.
  • Colleges must now mandatorily advise students about all benefits of Federal loans (like income-driven repayment and forgiveness) before the student accepts a state-based loan.
  • State-based loans must offer interest rates and fees that are at least as favorable as Federal Direct PLUS loans.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sessions, Pete [R-TX-17].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and the Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Education