WASHINGTON (ABC4 News) – U.S. lawmakers want to make sure families know exactly what they are signing up for when they take on student loans.
The Transparency in Student Lending Act introduced by Representative John Curtis (R-Utah) and Senator Mike Enzi (R-Wy) would improve the information provided to students and families taking on federal loans to finance higher education.
The bill would require the disclosure of the annual percentage rate (APR) for federal student loans before disbursement. The APR assists borrowers by showing the true cost of a loan, helping students and their families make more informed financial decisions.
“As the primary provider of the vast majority of student loans and education financing options, the federal government should provide a transparent and full accounting of associated costs and fees for borrowers,” said Curtis.
Curtis said currently borrowers of private student loans receive this information, but borrowers of loans issued by the Department of Education do not. He spoke on the House floor Tuesday, pushing for the legislation.
“College education can be a life-changing investment, but it comes at a tremendous cost. Right now, 44 million Americans collectively hold $1.5 trillion in student loan debt. I represent the youngest congressional district in the country and many of my constituents are struggling with student debt. With this legislation, we can help young people make fully informed financial decisions for their families and their futures.”
Watch his entire remarks via the video below
The bill was cosponsored by U.S. Senators John Barrasso (R-WY), Joni Ernst (R-IA), and US Representatives Tedd Budd (R-NC), and Bill Posey (R-FL).