US SB4097

Amends the Higher Education Act of 1965 to exclude state-based education loan programs from federal "preferred lender arrangement" requirements that typically regulate how colleges can recommend specific lenders

Defines qualifying state-based education loan programs as those operated by state agencies, state authorities, or nonprofits that are authorized by state law and not federally funded, insured, or guaranteed

Requires qualifying programs to offer interest rates and fees at least as favorable as federal Direct PLUS loans at the time of origination

Mandates that borrowers receive advisement from their institution about exhausting federal loan eligibility first, along with information about federal loan benefits including income-driven repayment, loan forgiveness, forbearance/deferment options, and tax benefits