The Student Loan Contract Act of 2024 would change the terminology used in federal student lending by renaming "master promissory notes" to "student loan contracts" for loans made under part D of the Higher Education Act of 1965. This change would apply to any master promissory note form created or used for new loans beginning on or after the bill's enactment date. The legislation also clarifies that a student loan contract can only be used for loans within the same academic award year in which the initial loan was taken out. The bill makes conforming changes to existing law to reflect this new terminology. The bill affects borrowers taking out new federal student loans under part D, as well as loan servicers and schools that administer these loans.
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