Student Loan Contract Act of 2025

The Student Loan Contract Act of 2025 would rename the master promissory note (MPN) used for loans under Part D of Title IV of the Higher Education Act (HEA) to “student loan contracts.” The bill codifies this new term for contracts created or used for loans starting for periods of enrollment on or after the date of enactment. It also adds a clarification that a student loan contract for Part D loans may only be used with respect to loans for periods of enrollment in the same award year as the initial loans for which the contract was used. In addition, the bill adds a conforming amendment to a related HEA provision to refer to the “student loan contract.” Overall, the proposal is a terminology and usage clarification, not a change to loan terms or borrower rights. Potential impact: the change is largely administrative and semantic, aimed at standardizing naming and ensuring contract usage stays aligned with the original award year. Borrowers, schools, and loan servicers would encounter the new term in place of “master promissory note” and would need to follow the same substantive rules already governing Part D loans, with the added constraint that a single contract is tied to a specific award year.