State-Based Education Loan Awareness Act

This Act may be cited as the State-Based Education Loan Awareness Act.
Section 151 of the Higher Education Act of 1965 (20 U.S.C. 1019) is amended—
in paragraph (8)(B)—
in clause (i), by striking or after the semicolon;
in clause (ii), by striking the period at the end and inserting ; or; and
by adding at the end the following:
arrangements or agreements with respect to education loans made under a State-based education loan program.
by adding at the end the following:
The term State-based education loan program means an education loan program that—
is provided by a State agency, State authority, or nonprofit organization, separately or jointly;
makes loans that are not funded, insured, or guaranteed by the Federal Government;
is authorized, established, or chartered by State law, or otherwise approved by the State;
offers one or more loans for which the interest rate and fees, as calculated in accordance with sections 106 and 107 of the Truth in Lending Act (15 U.S.C. 1605; 1606), are at least as favorable as the interest rate and fees of the Direct PLUS loans authorized under part D of title IV at the time such loan is originated; and
is available only to a borrower who has been advised, such as in a financial aid offer, by an institution of higher education (as defined under section 102)—
that the borrower has the opportunity to exhaust eligibility for Federal education loans made under part D of title IV prior to accepting a private education loan; and
of the interest rates, fees, and benefits of such Federal education loans, including income-driven repayment options, opportunities for loan forgiveness, forbearance or deferment options, interest subsidies, and tax benefits.