Provides strong bankruptcy protections by ensuring OBF products are not subject to the heightened certain student loans.
Ensure outcomes-based financing products receive bankruptcy protections and are not subject to heightened standards applied to certain student loans.
Occurrences
Evidence
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GovInfo lists S. 4943 as introduced by Todd Young with Warner and Coons, read twice, and referred to the Senate Committee on Finance. The last action date listed is June 24, 2026.
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The introduced bill states OBF obligations would be dischargeable in bankruptcy like loans not covered by 11 U.S.C. 523(a)(8), and Section 302 amends 11 U.S.C. 523(a)(8) to exclude funds provided as part of an OBF product.
Assessments
Todd Young materially advanced the promised policy by sponsoring S. 4943 in the 119th Congress, and the introduced text directly addressed the bankruptcy-treatment issue for outcomes-based financing products. However, the available official status shows the bill was only introduced, read twice, and referred to the Senate Finance Committee on June 24, 2026, with no evidence that the bankruptcy protections were enacted or otherwise implemented. This supports serious same-term effort, not fulfillment.