Transparency in Student Lending Act

Bill: 114-hr-5838
Sponsor: full_name: Rep. Hultgren, Randy [R-IL-14]
Introduced: 2016-07-14
Policy area: Education
Subjects: Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2016-09-19
text: Referred to the Subcommittee on Higher Education and Workforce Training.

Summaries:
action_date: 2016-07-14
action_desc: Introduced in House
text: <p><b>Transparency in Student Lending Act</b></p> <p>This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to expand disclosure requirements for an institution of higher education (IHE) that participates in the Direct Loan program. Specifically, it requires an IHE to disclose, in federal student loan application materials, the annual percentage rate applicable to a Direct Loan. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5838 IN THE HOUSE OF REPRESENTATIVES July 14, 2016 Mr. Hultgren (for himself, Mr. Carney , Mr. Messer , and Mr. David Scott of Georgia ) 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 the disclosure of the annual percentage rates applicable to Federal student loans.

1. Short title This Act may be cited as the Transparency in Student Lending Act . 2. Required disclosures 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: (2) Disclosure of APR at time of application In addition to the disclosures required under paragraph (1), each institution and contractor described in such paragraph shall disclose, as part of the application material provided to a borrower of a loan made under this part, the estimated annual percentage rate applicable to the loan, taking into account— (A) the stated interest rate of the loan; and (B) any fees or additional costs associated with the loan. .