New federal law lets companies make income-based student loans with fewer rules.
S. 4943 — Outcomes-Based Financing (OBF) for Students Act · Filed by Todd Young (R-IN) · 2 cosponsors · Introduced Jun 24, 2026 · Referred to committee
Your members of Congress
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What it does
The bill creates a new type of student loan called outcomes-based financing. Borrowers pay a percentage of their income each month instead of a fixed amount. Payments cannot exceed 20 percent of income. Borrowers must earn at least 250 percent of the poverty line to owe anything. Federal rules override state rules for these loans.
Who it affects
Students who borrow through outcomes-based financing will be affected. Lenders and companies that offer these loans will be affected. States lose power to set their own rules for these loans.
One thing to notice
The bill removes state rules that limit how much lenders can charge. States can only bring back their own rules if they name this bill in new state laws.
From the analysis of the bill text, linked under Primary records below.
Where it stands
2 cosponsors: 2 Democrats.
- Jun 24, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Jun 24, 2026 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
1 groups reported lobbying about this bill. They filed 1 reports from Jun 2026 to Jun 2026.
Those reports show $220,000 in lobbying spending. Each report lists about 6 bills. So that money was not all for this bill.
More groups named this bill than 0% of bills with any report.
Todd Young, who sponsored the bill, received $698,220 from PACs for the 2026 election.
- Slm Corporation — $220,000 in 1 report
Lobbying is legal. These reports show who lobbied about this bill, not what changed.
Words to know
- outcomes-based financing — A loan where monthly payments are a percentage of the borrower's income instead of a fixed amount.
- poverty line — The income level the government sets as the minimum needed to live.
- lobbying — Trying to influence lawmakers about a bill. Companies and groups pay people to do this.
- PACs — Groups that collect money and give it to candidates for office.
- sponsored — To sponsor a bill is to introduce it in Congress and put your name on it.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (50,012 characters) on Aug 17, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 14,522 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Jun 2026 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 20, 2026 · page rendered 2026-09-22.
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