No CRS summary available for this bill.
This section amends section 151 of the Higher Education Act of 1965 (1) to add as an exception in paragraph (8)(B) arrangements or agreements with respect to education loans made under a State-based education loan program; and (2) to define the term "State-based education loan program" as a program that (A) is provided by a State agency, State authority, or nonprofit organization; (B) makes loans 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 loans with interest rates and fees—as calculated under sections 106 and 107 of the Truth in Lending Act (15 U.S.C. 1605, 1606)—at least as favorable as those of Direct PLUS Loans under part D of title IV at origination; and (E) is available only to borrowers advised by their institution of higher education (e.g., in a financial aid offer) to exhaust federal Direct Loan eligibility first, including the interest rates, fees, and benefits of such loans (e.g., income-driven repayment, forgiveness, forbearance, deferment, interest subsidies, and tax benefits).