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S. 3761: Student Loan Bond Expansion Act of 2026

The Student Loan Bond Expansion Act of 2026 is a proposed piece of legislation that aims to change certain financial regulations regarding student loan bonds. Here’s a summary of what the bill would do:

Exemption from Volume Cap

The bill proposes to exempt qualified student loan bonds from the volume cap that limits the amount of bonds that can be issued in a given year. This change means that more funds could potentially be raised through the issuance of these bonds, as there would be fewer restrictions on how much can be issued.

Changes to Definitions

The legislation includes a special provision for pooled financing bond rules specifically related to qualified student loan bonds. It states that under certain conditions, the term "ultimate borrower" would not include any student borrower. This clarification is intended to streamline how these bonds are managed and financed.

Exemption from Alternative Minimum Tax

In addition to the volume cap exemption, the bill also seeks to exempt qualified student loan bonds from the alternative minimum tax (AMT). The AMT is a type of tax that ensures individuals and corporations pay a minimum amount of tax regardless of deductions. By exempting these bonds from the AMT, the bill aims to make investments in student loan bonds more attractive to investors.

Effective Date

The provisions of the bill would apply to obligations issued after the date the Act is enacted. This means that any bonds issued before that date would not be affected by these new regulations.

Overall Purpose

The overall goal of the Student Loan Bond Expansion Act of 2026 is to facilitate the funding of student loans through the issuance of bonds, making it easier and potentially more beneficial for investors to support student loan programs. By lifting certain restrictions, the bill aims to enhance the financing options available for student loans.

Relevant Companies

  • Sallie Mae (SAL) - As a major player in student loans, Sallie Mae could be impacted by increased financing options for student loans, which might lead to more lending opportunities.
  • Navy Federal Credit Union (ED) - Being involved in student loan origination, changes in bond regulations could affect their ability to fund student loans.

This is an AI-generated summary of the bill text. There may be mistakes.

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Sponsors

5 bill sponsors

Actions

2 actions

Date Action
Feb. 03, 2026 Introduced in Senate
Feb. 03, 2026 Read twice and referred to the Committee on Finance.

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