Blog Home

"Middle aged woman, a teacher and mentor, advising male student sitting in a office building by the window. "
"Middle aged woman, a teacher and mentor, advising male student sitting in a office building by the window. "
Policy and Advocacy Legislation Student Loans Letter to Legislator
Policy and Advocacy Legislation Student Loans Letter to Legislator

AccessLex Institute Supports Bill that Would Help Borrowers Access Nonprofit and State-Based Financing Options

The Honorable Bill Cassidy
Chairman
Senate Health, Education, Labor, and Pensions Committee
428 Dirksen Senate Office Building
Washington, D.C. 20510

The Honorable Bernie Sanders
Ranking Member
Senate Health, Education, Labor, and Pensions Committee
332 Dirksen Senate Office Building
Washington, D.C. 20510

Dear Chairman Cassidy and Ranking Member Sanders:

AccessLex Institute® is pleased to offer its support for the bipartisan State-Based Education Loan Awareness Act. Introduced on March 19, 2026 by Senators Bill Cassidy (R-LA), Lisa Murkowski (RAK), Jack Reed (D-RI), and Jeanne Shaheen (D-NH), S.4097 would make it easier for institutions of higher education to inform students about loans offered by nonprofit and state agency lenders by excluding them from certain requirements relating to a preferred lender arrangement.

AccessLex Institute, in partnership with its nearly 200 nonprofit and state-affiliated ABA-approved member law schools, has been committed to improving access to legal education and to maximizing the affordability and value of a law degree since 1983. The AccessLex Center for Legal Education Excellence® advocates for policies that make legal education work better for students and society alike and conducts research on the most critical issues facing legal education today.

In 2008, in response to concerns of schools steering students toward private lenders using “preferred lender lists” in exchange for benefits to the institution, Congress enacted preferred lender arrangement requirements regulating how institutions could share information about private student loans. While these reforms were designed to protect borrowers and increase transparency, nonprofit and state agency lenders which deliver affordable, student‑focused financing were also included in the definition of “private lender,” limiting institutions from providing borrowers with information about these lower cost loans.

This restriction has become even more consequential following the enactment of the One Big Beautiful Bill Act (OBBBA) which eliminates the Grad PLUS Loan Program and reduces the amount of federal loans that students may borrow annually to $20,500 (for graduate degree programs) and $50,000 (for professional degree programs), when many programs and the associated cost of living expenses significantly exceed this limit. 

Students and families are struggling to bridge the gap between reduced federal investment in higher education and rising tuition. The State-Based Education Loan Awareness Act will make it easier for borrowers to access affordable financing options, which may determine whether students can pursue and complete a degree. That is why AccessLex Institute supports the State-Based Education Loan Awareness Act which represents a timely and targeted solution to this longstanding challenge, restoring institutions’ ability to share information about nonprofit and state‑based lending options without triggering preferred lender requirements. 

Thank you for your time and attention to this matter. If you have any questions, please do not hesitate to contact me at [email protected] or Nancy Conneely, Managing Director of Policy, at [email protected].

Sincerely,
Christopher P. Chapman
President and Chief Executive Officer
 

Back to Results