I 
118TH CONGRESS 
1ST SESSION H. R. 1371 
To improve Federal student loan disclosures, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2023 
Ms. SPANBERGER (for herself, Mr. WALTZ, Mrs. CHAVEZ-DEREMER, Mr. 
JOHNSON of Ohio, Ms. SCHRIER, and Mr. STANTON) introduced the fol-
lowing bill; which was referred to the Committee on Education and the 
Workforce 
A BILL 
To improve Federal student loan disclosures, and for other 
purposes. 
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 ‘‘Student Loan Disclo-
sure Transparency Act of 2023’’. 
SEC. 2. REQUIRED DISCLOSURES BEFORE DISBURSEMENT. 
Section 433(a) of the Higher Education Act of 1965 
(20 U.S.C. 1083(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(18); 
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(2) by striking the period and inserting ‘‘; and’’ 
at the end of paragraph (19); and 
(3) by adding at the end the following new 
paragraph: 
‘‘(20) a separate written or electronic state-
ment, in simple and understandable terms, show-
ing— 
‘‘(A) for the loan or loans being dis-
bursed— 
‘‘(i) the principal amount of the loan, 
the stated interest rate on the loan, the 
number of required monthly payments to 
be made on the loan (which shall be based 
on a standard repayment plan or, in the 
case of a borrower who has selected an-
other repayment plan, on the repayment 
plan selected by the borrower), and the es-
timated number of months before the start 
of the repayment period for the loan 
(based on the expected date on which the 
repayment period is to begin or the 
deferment period under 428B(d)(1) is to 
end, as applicable); 
‘‘(ii) the estimated balance to be owed 
by the borrower on such loan (including, if 
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applicable, the estimated amount of inter-
est to be capitalized) as of the scheduled 
date on which the repayment period is to 
begin or the deferment period under 
428B(d)(1) is to end, as applicable, and an 
estimate of the projected monthly payment; 
and 
‘‘(iii) an estimate of the aggregate 
amount the borrower will pay for the loan 
or loans, including the total amount of 
monthly payments made over the life of 
the loan plus the amount of any charges 
for the loan, such as an origination fee; 
‘‘(B) for each other loan owed by the bor-
rower to the lender, the information described 
in clauses (i) through (iii) of subparagraph (A); 
and 
‘‘(C) an estimate of the total cumulative 
amount the borrower will pay for all loans owed 
by the borrower to that lender, including the 
loan being disbursed, as determined by calcu-
lating the sum of the estimated aggregate 
amounts the borrower will pay for each loan in 
accordance with subparagraphs (A) and (B).’’. 
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SEC. 3. DISCLOSURE OF PROJECTED MONTHLY PAYMENT 
AMOUNTS. 
Section 433 of the Higher Education Act of 1965 (20 
U.S.C. 1083) is further amended— 
(1) in subsection (b), by amending paragraph 
(9) to read as follows: 
‘‘(9) information of interest charges, accrual, 
and payments, including— 
‘‘(A) the projected total of interest charges 
which the borrower will pay on the loan or 
loans, assuming that the borrower makes pay-
ments exactly in accordance with the repayment 
schedule; 
‘‘(B) projections of the borrower’s monthly 
repayment amount, assuming interest accrual 
resulting from capitalization of interest while 
the borrower, or the student on whose behalf 
the loan is made, is in school (as applicable), 
which shall disclose the cost to the borrower 
of— 
‘‘(i) capitalizing the interest; and 
‘‘(ii) paying the interest as the inter-
est accrues; and 
‘‘(C) if the borrower has already paid in-
terest on the loan or loans, the amount of inter-
est paid;’’; and 
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(2) by striking subsection (d), and redesig-
nating subsections (e) and (f) as subsections (d) and 
(e), respectively. 
SEC. 4. REQUIRED MONTHLY DISCLOSURES. 
Section 433(d) of the Higher Education Act of 1965, 
as so redesignated by section 3 of this Act, is amended— 
(1) in the subsection header, by striking ‘‘DUR-
ING REPAYMENT’’ and inserting ‘‘FOR THE LIFE OF 
THE LOAN’’; and 
(2) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) PERTINENT INFORMATION ABOUT LOANS 
PROVIDED
ON
A
MONTHLY
BASIS.—Each eligible 
lender shall provide the borrower of one or more 
loans made, insured, or guaranteed under this part 
or part D with a written monthly bill or statement 
(including through electronic means), in simple and 
understandable terms, of pertinent loan information 
described in this paragraph that— 
‘‘(A) with respect to a borrower who is in 
repayment status, shall include a bill that cor-
responds to each payment installment time pe-
riod in which a payment is due; 
‘‘(B) with respect to a borrower who is not 
in repayment status, shall be a statement for 
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‘‘(v) the amount of interest that has 
accumulated on each loan and on all loans 
in the aggregate since the last statement, 
and the total interest accrued to date on 
each loan and on all loans in the aggregate 
during the life of the loans; 
‘‘(vi) the aggregate amount the bor-
rower has paid for each loan and all loans 
in the aggregate, including the amount the 
borrower has paid in interest, the amount 
the borrower has paid in fees, and the 
amount the borrower has paid against the 
principal; 
‘‘(vii) an estimate of the aggregate 
amount the borrower will pay during the 
life of the loan for each loan and on all 
loans in the aggregate, including the total 
amount of monthly payments made over 
the life of the loans plus the amount of any 
charges for the loans, such as origination 
fees; 
‘‘(viii) a description of each fee the 
borrower has been charged for the most re-
cently preceding installment time period; 
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‘‘(ix) the date by which the borrower 
needs to make a payment in order to avoid 
additional fees and the amount of such 
payment and the amount of such fees; 
‘‘(x) with respect to a borrower who is 
not in repayment, the estimated balance to 
be owed by the borrower on each loan and 
on all loans in the aggregate, and an esti-
mate of the projected monthly payment on 
each loan and on all loans in the aggre-
gate, on the estimated date the borrower 
will enter (or re-enter) repayment status; 
‘‘(xi) a reminder that the borrower 
has the option to change repayment plans, 
a list of the names of the repayment plans 
available to the borrower, a link to the ap-
propriate page of the Department’s website 
to obtain a more detailed description of the 
repayment plans, and directions for the 
borrower to request a change in repayment 
plan; 
‘‘(xii) an explanation— 
‘‘(I) that the borrower has the 
option to pay the interest that accrues 
on each loan while the borrower is a 
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student at an institution of higher 
education or during a period of 
deferment or forbearance, if applica-
ble; and 
‘‘(II) if the borrower does not 
pay such interest while attending an 
institution or during a period of 
deferment or forbearance, any accu-
mulated interest on the loan will be 
capitalized when the loan goes into re-
payment, resulting in more interest 
being paid over the life of the loan; 
‘‘(xiii) an explanation that making 
even small payments of any amount while 
the borrower is a student at an institution 
of higher education, or during a period of 
deferment or forbearance, if applicable, can 
help to offset interest accrual over the life 
of the loan; 
‘‘(xiv) the lender’s or loan servicer’s 
address, toll-free phone number, and 
website for payment and billing error pur-
poses, including information about how a 
borrower can make voluntary payments 
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when a loan is not in repayment status; 
and 
‘‘(xv) an explanation to borrowers 
that loans made under this part of part D 
have significant protections for borrowers 
that aren’t offered by the private market, 
including a number of income-driven re-
payment options, which offer flexible re-
payments terms and loan forgiveness for 
struggling borrowers.’’. 
SEC. 5. REPORT TO CONGRESS ON CONSUMER TESTING. 
Not later than 24 months after the date of enactment 
of this Act, the Secretary shall— 
(1) conduct consumer testing by obtaining feed-
back from individuals, including borrowers and pro-
spective borrowers of loans under the Higher Edu-
cation Act of 1965, on the usefulness and effective-
ness of disclosing monthly terms of loans under sec-
tion 433 of the Higher Education Act of 1965, as 
amended by this Act, to maximize borrowers’ under-
standing of the terms and conditions of such loans; 
and 
(2) submit to Congress a report on the results 
of such consumer testing. 
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SEC. 6. EFFECTIVE DATE. 
The amendments made by this Act to the Higher 
Education Act of 1965 shall take effect 180 days after 
the date of enactment of this Act. 
Æ 
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