U.S. Senators John Barrasso and Cynthia Lummis, both R-WY, are introducing the Transparency in Student Lending Act to ensure families and student borrowers have all of the information they need relating to financial aid and the cost of loans for higher education.
The bill would require the Department of Education (ED) to disclose to borrowers of federal student loans such information as loan amounts, their annual percentage rates (APR), standard terms, and any fees or additional costs associated with the loan. This legislation would equip borrowers of federal student loans with information on the true cost of their loans, enabling students to make more informed financial decisions.
“Students face an overwhelming amount of information and financial decisions when trying to plan and pay for higher education. Those trying to plan for college and their future deserve to know the true cost of their loans,” said Senator Barrasso. “This important bill will provide students and families the transparency they need to feel confident about their financial aid decisions and avoid unexpected costs.”
“When young people across Wyoming apply for student loans, they should have a clear understanding of the financial obligations they are assuming,” said Senator Lummis. “Senator Barrasso and I are partnering to bring transparency to the student loan process to ensure borrowers understand the true cost of their loans and empower them to make informed decisions.”
This legislation was previously introduced by Wyoming Senator Mike Enzi in the 116th Congress. Senator Barrasso was a cosponsor.
The Transparency in Student Lending Act:
- Requires the Department of Education to disclose to borrowers the following information before the disbursement of their loan:
- The loan amount
- The loan’s stated interest rate
- The standard term for a loan of the same type
- Any fees or additional costs associated with the loan
- Any capitalization of interest on the loan
