[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3054 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 3054
To establish that a State-based education loan program is excluded from
certain requirements relating to a preferred lender arrangement.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``State-based Education Loan Awareness
Act''.
SEC. 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.''.
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