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Congress·In Committee·H.R. 2660

Student Loans: Tax Changes for State-Funded Loan Programs

To amend the Internal Revenue Code of 1986 to exempt qualified student loan bonds from the volume cap and the alternative minimum tax.

12 months ago·View on Congress.gov
Part of: Congress Moves to Lift Caps on State-Issued Student Loan Bonds
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Stalled

No legislative action in over 90 days.

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill, introduced by Representative Feenstra, changes tax laws to make it easier and cheaper for states to fund their own student loan programs. It removes a federal limit on how many tax-exempt bonds states can sell specifically for student loans.
  • The policy also exempts these bonds from the Alternative Minimum Tax. This makes the bonds more attractive to investors, which allows state agencies to borrow money at lower interest rates. These savings are typically passed down to students in the form of lower interest rates on their loans.
  • Currently, states have a 'volume cap,' which is a total dollar limit on certain tax-exempt bonds they can issue each year. By removing student loan bonds from this cap, states can fund more education loans without having to take money away from other projects like affordable housing or infrastructure.
  • If this bill becomes law, the changes would apply to any new bonds issued after the start date. This would primarily help students who rely on state-based lending programs rather than just federal student loans.

Milestones

2 milestones2 actions
Apr 7, 2025House

Referred to the House Committee on Ways and Means.

Apr 7, 2025

Introduced in House

Related Bills

1 bill
S. 3761Related bill

Student Loan Bond Expansion Act of 2026

Feb 3 — Read twice and referred to the Committee on Finance.

Source Information

Document Type

Congressional Bill

Official Title

To amend the Internal Revenue Code of 1986 to exempt qualified student loan bonds from the volume cap and the alternative minimum tax.

Bill NumberHR 2660
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(3)
D: 1R: 2

Analysis generated by AI. Always verify with official sources.