This legislation, titled the "Student Loan Bond Expansion Act of 2026," aims to significantly alter the tax treatment of qualified student loan bonds. It proposes to exempt these bonds from state volume caps on private activity bonds, which currently limit the amount of tax-exempt debt states can issue annually. Additionally, the bill seeks to exclude interest on qualified student loan bonds from the alternative minimum tax (AMT) , making them more attractive to investors. By removing these financial and issuance restrictions, the bill intends to encourage the issuance of more tax-exempt bonds to fund student loans. A special rule clarifies that for pooled financing bonds, student borrowers are not considered "ultimate borrowers," further facilitating their issuance. These amendments would apply to all qualified student loan bonds issued after the bill's enactment.