Student Loan Contract Act of 2025

This bill changes the name of the “master promissory note” for federal Direct Loans to “student loan contract.” It also updates related loan disclosure language to match this change. The goal is to make the paperwork name clearer and more straightforward for borrowers.

Key points:

• Who’s affected: Students and borrowers using federal Direct Loans under the Higher Education Act.
• What changes: The form you sign is now called a “student loan contract,” and related loan disclosures are updated to use that term.
• How it works: Each student loan contract only applies to the loans you take out in the same award year as your first loan under that contract.
• When: Applies to enrollment periods that begin on or after the date the law takes effect.