This bill, titled the "Outcomes-Based Financing (OBF) for Students Act," aims to create a robust consumer protection framework for Outcomes-Based Financing (OBF) products . These financial products provide upfront financing for education or workforce training, with repayment obligations contingent on the recipient's future income, featuring an income threshold , a maximum duration , and a maximum number of payments . The legislation clarifies the tax treatment of OBF products. It excludes from gross income any amounts discharged from an OBF loan or payment agreement and treats OBF payments as deductible interest on education loans. Furthermore, employer payments towards OBF products are considered educational assistance, and the bill clarifies how amounts received by OBF providers are treated for tax purposes. To ensure transparency, the bill mandates comprehensive disclosures for OBF products. The Bureau of Consumer Financial Protection (BCFP) is directed to create regulations and model disclosure forms, requiring providers to clearly present information such as the payment calculation method, income threshold, maximum duration, and a comparison table of payment scenarios at various income levels. Advertising of OBF products must also clearly state key terms like the payment calculation method, duration, and income threshold. Significant consumer safeguards are introduced, including a prohibition on accelerating payments for most OBF products, with limited exceptions for outcomes-based loans. Affordability limits dictate that OBF payments cannot exceed 20 percent of a recipient's income, and a minimum income threshold (250 percent of the federal poverty line) must be met before payments are required. The bill also sets limits on the OBF duration (360 months) and the maximum number of payments (240), and provides discharge protections in cases of death or total and permanent disability. The bill outlines rules for estimating income if recipients fail to provide documentation and prohibits the assignment of wages. It also addresses the preemption of state laws , stipulating that OBF products are not to be treated as insurance or wagering contracts, and preempting state laws concerning wage assignment, equal payments, ability to repay, financing limits, and usury, while allowing for specific state legislation to impose alternative limits. Finally, the bill makes other clarifying amendments to federal laws. It directs the Treasury to allow ongoing consent for the release of taxpayer information to OBF providers and amends the Higher Education Act of 1965 regarding OBF payments for proprietary institutions and disclosure requirements for preferred lender arrangements. The Equal Credit Opportunity Act is amended to permit OBF underwriting based on historical outcomes data, and the Fair Credit Reporting Act is updated to allow reporting of OBF contract terms while prohibiting speculation on future amounts for outcomes-based payment agreements.