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New Government-Guaranteed Student Loans: Affordable Financing for Undergraduates

This Act establishes the Affordable Future Loan Program, a new government-guaranteed student loan option specifically for undergraduate students. The program aims to increase access to higher education by prohibiting discrimination based on creditworthiness and subsidizing interest while the borrower is enrolled or in deferment. It introduces flexible repayment options, including an Income-Driven Repayment plan, ensuring payments remain manageable based on the borrower's financial situation after graduation.
Key points
New student loans are available to undergraduates without considering their creditworthiness or Expected Family Contribution (EFC).
The government pays the interest on the loan while the student is enrolled, serving in the military, or undergoing cancer treatment.
Annual loan limits are set at $19,000 (adjusted for inflation) minus other federal aid received.
Borrowers can choose between a 15-year fixed repayment plan or an Income-Driven Repayment plan based on discretionary income.
Defaulted borrowers can restore eligibility for federal aid after making 6 consecutive, affordable monthly payments.
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Additional Information
Print number: 118_S_4926
Sponsor: Sen. Rounds, Mike [R-SD]
Process start date: 2024-08-01
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Affordable Future Loan Program Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4926.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-08-01.

What are the main provisions?

Key points include:

  • New student loans are available to undergraduates without considering their creditworthiness or Expected Family Contribution (EFC).
  • The government pays the interest on the loan while the student is enrolled, serving in the military, or undergoing cancer treatment.
  • Annual loan limits are set at $19,000 (adjusted for inflation) minus other federal aid received.
  • Borrowers can choose between a 15-year fixed repayment plan or an Income-Driven Repayment plan based on discretionary income.
  • Defaulted borrowers can restore eligibility for federal aid after making 6 consecutive, affordable monthly payments.
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 Sen. Rounds, Mike [R-SD].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Education