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Congress·In Committee·27 days ago

Student Loans: Tax Changes for State-Funded Loan Programs

Also known as: Student Loan Bond Expansion Act of 2026

Legislative Progress

✓ Filed
Review
Senate
House
President

Key Points

  • Congress is considering a bill to make it easier for states to raise money for student loans. It would change tax rules to allow states to sell more student loan bonds, which are used to fund low-interest loans for college students.
  • Currently, there is a limit on how many of these special bonds a state can issue each year. This bill would remove that limit, allowing states to provide more financial aid to students who need help paying for school.
  • The plan also changes how these bonds are taxed. It would make the interest earned by investors tax-free, even for those who usually have to pay a specific alternative minimum tax. This makes the bonds more attractive to investors, which helps keep loan costs down.
  • If passed, this could lead to more available loans or lower interest rates for students getting help through state-run programs. The changes would apply to any new bonds issued after the bill becomes law.

Milestones

2 milestones2 actions
Feb 3, 2026Senate

Read twice and referred to the Committee on Finance.

Feb 3, 2026

Introduced in Senate

Source Information

Document Type

Congressional Bill

Official Title

Student Loan Bond Expansion Act of 2026

Bill NumberS 3761
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(3)
D: 2R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.