Transparency in Student Lending Act

I 116TH CONGRESS 1ST SESSION H. R. 811 To amend the Higher Education Act of 1965 to require the disclosure of the annual percentage rates applicable to Federal student loans. IN THE HOUSE OF REPRESENTATIVES JANUARY 28, 2019 Mr. CURTIS (for himself, Mr. POSEY, and Mr. BUDD) introduced the following bill; which was referred to the Committee on Education and Labor 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 (1) by striking ‘‘Each institution’’ and inserting 9 the following: 10 VerDate Sep 11 2014 04:11 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H811.IH H811 kjohnson on DSK79L0C42 with BILLS 2 •HR 811 IH ‘‘(1) IN GENERAL.—Each institution’’; and 1 (2) by adding at the end the following: 2 ‘‘(2) DISCLOSURE OF APR PRIOR TO DISBURSE- 3 MENT.—In addition to the disclosures required 4 under paragraph (1), each institution and contractor 5 described in such paragraph shall disclose to a bor- 6 rower before disbursement of a loan made under this 7 part, in writing and in a form the borrower may 8 keep, the annual percentage rate applicable to the 9 loan, taking into account— 10 ‘‘(A) the amount of the loan; 11 ‘‘(B) the stated interest rate of the loan; 12 ‘‘(C) the standard term for a loan of the 13 same type; 14 ‘‘(D) any fees or additional costs associ- 15 ated with the loan; and 16 ‘‘(E) any capitalization of interest on the 17 loan.’’. 18 Æ VerDate Sep 11 2014 04:11 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H811.IH H811 kjohnson on DSK79L0C42 with BILLS