S. 4097, the State-Based Education Loan Awareness Act, advanced out of committee on July 30, 2026.
S. 4097 — State-Based Education Loan Awareness Act
What it does
This bill exempts state-based education loan programs from federal 'preferred lender' rules that normally restrict how colleges can recommend private lenders to students. It defines state-based programs as those run by state agencies or nonprofits, funded without federal backing, offering rates as good as federal PLUS loans, and only to students who have exhausted federal aid. The bill also requires a GAO report tracking how student borrowing patterns change across federal, state, institutional, and private loans after recent student loan reforms.
Quorum's transparency scan gave State-Based Education Loan Awareness Act a moderate transparency flag.
What happens next
S. 4097 advanced out of committee. Next stop: a floor vote.
Who is behind it
Filed by Lisa Murkowski. Cosponsored by Bill Cassidy, Chuck Grassley, Dan Sullivan and Jack Reed.