(1) in paragraph (4), by striking ‘‘the origina-
tion fee and’’ and inserting ‘‘finance charges, the 
origination fee, and’’; 
(2) by redesignating paragraphs (6) through 
(19) as paragraphs (7) through (20), respectively; 
and 
(3) by inserting after paragraph (5), the fol-
lowing: 
‘‘(6) the annual percentage rate applicable to 
the loan, taking into account— 
‘‘(A) the amount of the loan; 
‘‘(B) the stated interest rate of the loan; 
‘‘(C) the standard term for a loan of the 
same type; 
‘‘(D) any fees or additional costs associ-
ated with the loan; and 
‘‘(E) any capitalization of interest on the 
loan;’’. 
SEC. 3. PLAIN LANGUAGE DISCLOSURE FORM. 
Section 455(p) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(p)) is amended— 
(1) by striking ‘‘Each institution’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—Each institution’’; and 
(2) by adding at the end the following: 
VerDate Sep 11 2014 
04:03 Feb 23, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1161.IH
H1161
kjohnson on DSK79L0C42 with BILLS
‘‘(2) PLAIN LANGUAGE DISCLOSURE FORM.— 
‘‘(A) DEVELOPMENT
AND
ISSUANCE
OF 
FORM.—Not later than 18 months after the 
date of the enactment of this paragraph, the 
Secretary shall, based on consumer testing, de-
velop and issue a model form to be known as 
the ‘Plain Language Disclosure Form’ that 
shall be used by institutions and contractors de-
scribed in paragraph (1) to comply with the dis-
closure requirements of such paragraph. 
‘‘(B) FORMAT.—The Secretary shall en-
sure that the Plain Language Disclosure 
Form— 
‘‘(i) enables borrowers to easily iden-
tify the information required to be dis-
closed under section 433(a) with respect to 
a loan, with emphasis on the loan terms 
determined by the Secretary to be critical 
to understanding the total costs of the loan 
and the estimated monthly repayment; 
‘‘(ii) has a clear format and design, 
including easily readable font; and 
‘‘(iii) is as succinct as practicable. 
VerDate Sep 11 2014 
04:03 Feb 23, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1161.IH
H1161
kjohnson on DSK79L0C42 with BILLS
‘‘(C) CONSULTATION.—In developing Plain 
Language Disclosure Form, the Secretary shall, 
as appropriate, consult with— 
‘‘(i) the Federal Reserve Board; 
‘‘(ii) institutions and contractors de-
scribed in paragraph (1); 
‘‘(iii) borrowers of loans under this 
part; and 
‘‘(iv) other organizations involved in 
the provision of financial assistance to stu-
dents, as identified by the Secretary. 
‘‘(3) ELECTRONIC SYSTEM FOR COMPLIANCE.— 
In carrying out paragraph (2), Secretary shall de-
velop and implement an electronic system that may 
be used by institutions and contractors described in 
paragraph (1) to generate a Plain Language Disclo-
sure Form for each borrower by— 
‘‘(A) enabling institutions and contractors 
to enter personalized loan request information 
electronically; 
‘‘(B) integrating appropriate data found in 
the National Student Loan Data System; and 
‘‘(C) generating and integrating personal-
ized borrower information. 
VerDate Sep 11 2014 
04:03 Feb 23, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1161.IH
H1161
kjohnson on DSK79L0C42 with BILLS
‘‘(4) LIMIT
ON
LIABILITY.—Nothing in this 
paragraph shall be construed to create a private 
right of action against an institution or contractor 
described in paragraph (1) with respect to the form 
or electronic system developed under this paragraph. 
‘‘(5) BORROWER
SIGNATURE
REQUIRED.—Be-
ginning after the issuance of the Plain Language 
Disclosure Form by the Secretary under paragraph 
(2), a loan may not be issued to a borrower under 
this part unless the borrower acknowledges, in writ-
ing (which may include an electronic signature), that 
the borrower has read the Plain Language Disclo-
sure Form for the loan concerned. 
‘‘(6) CONSUMER
TESTING
DEFINED.—In this 
subsection, the term ‘consumer testing’ means the 
solicitation of feedback from individuals, including 
borrowers and prospective borrowers of loans under 
this part (as determined by the Secretary), about 
the usefulness of different methods of disclosing ma-
terial terms of loans on the Plain Language Disclo-
sure Form to maximize borrowers’ understanding of 
the terms and conditions of such loans.’’. 
SEC. 4. REPORT TO CONGRESS. 
Not later than 2 years after the date of the enact-
ment of this Act, the Secretary of Education shall submit 
VerDate Sep 11 2014 
04:03 Feb 23, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1161.IH
H1161
kjohnson on DSK79L0C42 with BILLS
to Congress a report that includes a description of the 
methods and procedures used to develop the Plain Lan-
guage Disclosure Form required under section 455(p)(2) 
of the Higher Education Act of 1965 (as added by section 
3 of this Act). 
Æ 
VerDate Sep 11 2014 
04:03 Feb 23, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H1161.IH
H1161
kjohnson on DSK79L0C42 with BILLS