Transparency in Student Lending Act

II 116TH CONGRESS 1ST SESSION S. 234 To amend the Higher Education Act of 1965 to require the disclosure of the annual percentage rates applicable to Federal student loans. IN THE SENATE OF THE UNITED STATES JANUARY 28, 2019 Mr. ENZI (for himself, Mr. BARRASSO, and Ms. ERNST) introduced the fol- lowing bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Higher Education Act of 1965 to require the disclosure of the annual percentage rates applicable to Federal student loans. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Transparency in Stu- 4 dent Lending Act’’. 5 SEC. 2. REQUIRED DISCLOSURES. 6 Section 455(p) of the Higher Education Act of 1965 7 (20 U.S.C. 1087e(p)) is amended— 8 VerDate Sep 11 2014 02:04 Feb 01, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 kjohnson on DSK79L0C42 with BILLS 2 •S 234 IS (1) by striking ‘‘Each institution’’ and inserting 1 the following: 2 ‘‘(1) IN GENERAL.—Each institution’’; and 3 (2) by adding at the end the following: 4 ‘‘(2) DISCLOSURE OF APR PRIOR TO DISBURSE- 5 MENT.—In addition to the disclosures required 6 under paragraph (1), each institution and contractor 7 described in such paragraph shall disclose to a bor- 8 rower before disbursement of a loan made under this 9 part, in writing and in a form the borrower may 10 keep, the annual percentage rate applicable to the 11 loan, taking into account— 12 ‘‘(A) the amount of the loan; 13 ‘‘(B) the stated interest rate of the loan; 14 ‘‘(C) the standard term for a loan of the 15 same type; 16 ‘‘(D) any fees or additional costs associ- 17 ated with the loan; and 18 ‘‘(E) any capitalization of interest on the 19 loan.’’. 20 Æ VerDate Sep 11 2014 02:04 Feb 01, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S234.IS S234 kjohnson on DSK79L0C42 with BILLS