I 
114TH CONGRESS 
2D SESSION 
H. R. 5755 
To amend the Higher Education Act of 1965 to require institutions of 
higher education to provide students with annual estimates of student 
loan borrowing costs. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2016 
Mr. MESSER (for himself, Ms. STEFANIK, Mr. ROKITA, Mrs. BROOKS of Indi-
ana, Mr. BUCSHON, Mr. SWALWELL of California, and Mr. YOUNG of In-
diana) introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to require 
institutions of higher education to provide students with 
annual estimates of student loan borrowing costs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Letter of Estimated 
Annual Debt for Students Act of 2016’’ or the ‘‘LEADS 
Act of 2016’’. 
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SEC. 2. ANNUAL ESTIMATE OF STUDENT LOAN BORROWING 
COSTS. 
Section 485 of the Higher Education Act of 1965 (20 
U.S.C. 1092) is amended by adding at the end the fol-
lowing: 
‘‘(n) ANNUAL ESTIMATE OF STUDENT LOAN BOR-
ROWING COSTS.— 
‘‘(1) IN GENERAL.—Beginning on July 1, 2018, 
each eligible institution shall provide a cost estimate 
described in paragraph (2) to each enrolled student 
who receives an education loan to attend the institu-
tion, not later than 30 days before the first day of 
each academic year beginning after the academic 
year for which the student first received such a loan 
to attend such institution. 
‘‘(2) CONTENTS OF ESTIMATE.—The estimate 
under paragraph (1) shall contain the following in-
formation: 
‘‘(A) CUMULATIVE BALANCES AND MONTH-
LY PAYMENTS.—A notice to the student of— 
‘‘(i) the cumulative balance of edu-
cation loans owed by the student as of the 
date of the notice; 
‘‘(ii) the amount of any new education 
loans expected to be disbursed during such 
academic year; 
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‘‘(iii) the projected cumulative balance 
of education loans that will be owed by the 
student after the completion of the stu-
dent’s course of study at the institution; 
and 
‘‘(iv) 
projected 
monthly 
payment 
amounts based on the cumulative balances 
described in clauses (i), (ii), and (iii), re-
spectively, assuming a standard repayment 
schedule. 
‘‘(B) INTEREST RATES.—The interest rate 
of each education loan, except that interest 
rates for a private education loan may be based 
on average private education loan interest rates 
if the institution cannot reasonably determine 
the actual interest rate of such loan. 
‘‘(C) DISCLAIMER.—A clear and con-
spicuous notice stating that any information 
provided under paragraph (1) is an estimate, 
accurate to the best of the institution’s knowl-
edge, and that an interest rate provided under 
subparagraph (B)— 
‘‘(i) in the case of a loan described in 
paragraph (6)(A)(i), is the applicable rate 
of interest of such loan; 
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‘‘(ii) in the case of a private education 
loan, may be based on average private edu-
cation loan interest rates; and 
‘‘(iii) does not include private edu-
cation loans of which the institution is not 
aware. 
‘‘(3) FORM OF ESTIMATE.—The estimate under 
paragraph (1) shall be— 
‘‘(A) provided to the student in hard copy 
format on the letterhead of the institution, by 
electronic mail or by another method the Sec-
retary may prescribe; and 
‘‘(B) delivered to the student separately 
from any other disclosures required under this 
Act. 
‘‘(4) LIMITATION OF LIABILITY.—An institution 
that provides the estimate under paragraph (1) in 
good faith shall not be liable to any person for inac-
curacies contained in such estimate. 
‘‘(5) STUDENT DEBT LETTER TEMPLATE.—Not 
later than July 1, 2017, and as necessary thereafter, 
the Secretary shall provide the following to eligible 
institutions: 
‘‘(A) Examples of estimates required under 
paragraph (2). 
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