Student Loan Accountability and Disclosure Reform Act

Bill: 110-s-1262
Sponsor: Sen. Enzi, Michael B. [R-WY]
Introduced: 2007-05-02 in the Senate
Policy area: Education
Subjects: Civil Rights and Liberties, Minority Issues
Collection of accounts
College administration
College costs
Colleges
Commerce
Conflict of interests
Congressional reporting requirements
Consultants
Consumer education
Discrimination in consumer credit
Economics and Public Finance
Educational technology
Equipment and supplies
Ethics
Federal aid to education
Fees
Finance and Financial Sector
Fines (Penalties)
Gifts
Government Operations and Politics
Government paperwork
Governmental investigations
Higher education
Information technology
Interest rates
Law
Loan defaults
School personnel
Science, Technology, Communications
Securities
Stocks
Student aid
Student loan funds
Students' rights
Transportation and Public Works
Travel costs
Trusts and trustees
Web sites

Summary:
action_date: 2007-05-02
text: 
Student Loan Accountability and Disclosure Reform Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 (the Act) to expand prohibitions on guaranty agencies operating under the Federal Family Education Loan (FFEL) program by prohibiting their offering specified inducements to institutions of higher education (IHE) or lenders to secure business or providing certain services for such institutions without appropriate compensation. 
 
Requires lenders to provide student loan applicants with certain written information regarding: (1) loan conditions; (2) their possible qualification for title IV assistance; (3) the method for determining the applicable interest rate; and (4) whether the loans provided exceed a student's attendance costs. 
 
Directs the Secretary of Education and the Secretary of the Treasury to review the private educational loan market to identify possible discriminatory lending practices affecting students who qualify for a simplified needs test or application process.
 
Expands the activities disqualifying lenders from participation in the FFEL program, including: (1) offering specified inducements to IHEs; (2) performing certain uncompensated services for IHEs; and (3) entering into certain business arrangements with students or school financial aid employees.
 
Establishes a private loan exception to the prohibition IHE certification of a student's eligibility to borrow amounts in excess of those allowable under the FFEL program.
 
Requires limitation, suspension, or termination of an IHE's participation in title IV loan programs for noncompliance with a student loan code of conduct prohibiting IHEs or their financial aid employees from accepting certain inducements from, or entering into certain business arrangements with, lenders.
 
Bans IHEs from designating preferred lenders; but allows lenders to submit a standard electronic template to IHEs regarding loan conditions which will then be made available to students and their parents.
 
Terminates the authority of a school to serve as a lender or a lender to serve as a school trustee under the FFEL program.


Legislative actions:
action_date: 2007-05-02
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S5500-5502)
action_date: 2007-05-02
text: Sponsor introductory remarks on measure. (CR S5499-5500)
action_date: 2007-05-02
text: Introduced in Senate