Section 1 Short title
This Act may be cited as the “Student Loan Contract Act of 2019”.
Student Loan Contract Act of 2019
A BILL
To amend the Higher Education Act of 1965 to rename master promissory notes for loans made under part D to student loan contracts.
Sec. 2 Student loan contract and loan disclosures
Student loan contract— Section 432(m)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1082(m)(1)(D)) is amended by adding at the end the following:
“(iv) Student loan contract
“(I) In general—Any master promissory note form described in this subparagraph that is developed or used for loans made under part D for periods of enrollment beginning on or after the date of enactment of the Student Loan Contract Act of 2019 shall be referred to as a “student loan contract”.
“(II) Clarification on use—A student loan contract for loans made under part D for a student shall only be used with respect to loans made under part D for the periods of enrollment that are in the same award year for which the initial loans for which the contract is used were made.”
Conforming amendments— Section 485(l)(2)(B) of the Higher Education Act of 1965 (20 U.S.C. 1092(l)(2)(B)) is amended by inserting before the period at the end the following: “or the student loan contract”.
Effective date— The amendments made by this section shall take effect with respect to academic year 2019–2020 and each succeeding academic year.