Bill > S3761

This bill, the Student Loan Bond Expansion Act of 2026, aims to make it easier and more affordable to finance student loans by amending the Internal Revenue Code of 1986. Specifically, it proposes to exempt "qualified student loan bonds" from two key limitations: the "volume cap," which is an annual limit on the total amount of certain tax-exempt bonds that can be issued by states and local governments, and the "alternative minimum tax" (AMT), a parallel tax system that can apply to individuals and corporations if their regular tax liability is too low. By removing these restrictions, the bill intends to encourage the issuance of more bonds to fund student loans, potentially leading to lower borrowing costs for students. The bill also clarifies that for certain pooled financing rules, a "student borrower" will not be considered the "ultimate borrower" when it comes to qualified student loan bonds, and it includes a provision that generally requires refunding bonds to also be qualified student loan bonds to maintain their AMT exemption. These changes would apply to bonds issued after the bill becomes law.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3761/all-info