Congress·In Committee·S. 3761

Student Loans: Tax Changes for State-Funded Loan Programs

Student Loan Bond Expansion Act of 2026

Legislative Progress

Senate

House

President

Law

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.

2 milestones2 actions

Feb 3, 2026Senate

Read twice and referred to the Committee on Finance.

Feb 3, 2026

Introduced in Senate

1 bill

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

Apr 7 — Referred to the House Committee on Ways and Means.

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.

(4)

D: 3R: 1

Congress.gov

Official legislative information

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