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S. 3054: State-based Education Loan Awareness Act


The text of the bill below is as of Dec 16, 2019 (Introduced).


II

116th CONGRESS

1st Session

S. 3054

IN THE SENATE OF THE UNITED STATES

December 16, 2019

(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.

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 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.

.