S. 4097 · Where this bill is now
In committee
Introduced in the Senate, Mar 16, 2026
What this bill does
In plain words · AI-written from the official summaryChanges rules on state education loan programs
Right now, there are rules about which lenders colleges can recommend to their students—to protect students from biased recommendations. This bill carves out an exception for education loan programs run by states. It says that when a state runs its own education loan program and colleges recommend it, that wouldn't count as a "preferred lender arrangement" under federal rules, so different disclosure requirements would apply.
How it affects you
If you're a student considering education loans, this could affect what information your college has to give you about loan options. The summary doesn't spell out exactly how the disclosures would change or what that means practically for borrowers, but the bill makes state-based loan programs work differently under federal rules than other lenders colleges recommend.
Read the official summary (Introduced in Senate, Mar 16, 2026)
State-Based Education Loan Awareness Act
This bill excludes certain arrangements or agreements regarding education loans from the definition of a preferred lender arrangement .
A preferred lender arrangement is an arrangement or agreement between a lender and an institution of higher education (IHE) that receives federal funding or assistance (1) under which a lender issues education loans to students attending the IHE; and (2) that relates to the IHE recommending, promoting, or endorsing the education loan products of the lender.
The bill provides that arrangements or agreements made under a state-based education loan program do not meet the definition of a preferred lender agreement for purposes of certain required disclosures to student borrowers.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
2nd SessionS. 4097
A BILL
State-Based Education Loan Awareness Act
Sponsor: Sen. Lisa Murkowski (R-AK) · Introduced Mar 16, 2026 · Education · 2 versions of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Aug 4, 2026: “Placed on Senate Legislative Calendar under General Orders. Calendar No. 539.”
Sections
The wording of this bill hasn’t changed across its 2 official versions.