A bill to amend the Internal Revenue Code of 1986 to allow State secondary markets of student loan notes to continue serving the educational needs of post-secondary students and the Nation.

Amends the Internal Revenue Code to include supplemental student loan programs (not federally guaranteed) within the 18-month extended arbitrage period applied to qualified student loan bond proceeds. Makes permanent this extended arbitrage period (currently applicable only to bonds issued before 1989).

Makes permanent the provision exempting qualified student loan bonds from arbitrage rebate payment requirements. (The exception currently applies only to bonds issued before 1989.) Brings supplemental student loan programs within this aribtrage rebate exception.

Allows corporations authorized to issue qualified scholarship funding bonds to make or acquire loans under supplemental student loan programs. (Such corporations may currently acquire only federally-guaranteed student loan notes.)