Federal Student Loan Documents Renamed to "Student Loan Contracts"
This law renames the primary document used for federal student loans (Master Promissory Note) to the "Student Loan Contract." This change emphasizes the binding legal nature of the agreement. Furthermore, each contract will only be valid for loans taken out within a single award year, potentially requiring more frequent documentation but increasing clarity regarding annual obligations.
Key points
Federal student loans will now be documented using a "Student Loan Contract" instead of the previous "Master Promissory Note."
New contracts will only apply to loans taken out within the same award year, limiting their multi-year use and potentially requiring annual signing.
Status:
Introduced
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