S.3255 - Student Borrower Bill of Rights Act of 2006109th Congress (2005-2006)
|Sponsor:||Sen. Clinton, Hillary Rodham [D-NY] (Introduced 05/26/2006)|
|Committees:||Senate - Health, Education, Labor, and Pensions|
|Latest Action:||05/26/2006 Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (All Actions)|
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Summary: S.3255 — 109th Congress (2005-2006)All Information (Except Text)
Introduced in Senate (05/26/2006)
Student Borrower Bill of Rights Act of 2006 - Urges the Department of Education to vigorously enforce rules requiring lenders to complete lender verification certificates in a timely manner for borrowers seeking to consolidate loans.
Amends the Higher Education Act of 1965 to require specified loan participants under the Federal Family Education Loan (FFEL) and Federal Perkins Loan programs to disclose to each national credit bureau organization any on-time payments made for such loans and their status as student loans.
Repeals the single holder rule which requires borrowers to apply to their current lenders for FFEL consolidation loans.
Offers Federal Direct Consolidation Loans (FDCLs) to borrowers who are unable to obtain insured FFEL consolidation loans with income-sensitive repayment terms.
Requires FFEL consolidation loan borrowers or lenders to pay the Department 1% of the balance owed on the sum of such loans to obtain a subsequent FFEL consolidation loan. Allows borrowers to refinance FDCLs.
Creates a student borrower bill of rights requiring lenders to provide student borrowers with specified loan information at specified periods of time. Urges the Department to distribute a training manual and provide technical assistance to those counseling borrowers concerning the repayment of federal student loans.
Limits, on the basis of a borrower's income, the monthly payment amount required of federal student loan borrowers. Discharges such borrowers' loan liability if they cannot engage in any substantial gainful activity due to a medically determinable impairment which can be expected to result in death or last at least 60 continuous months. Amends federal bankruptcy law to discharge certain educational benefit overpayments, repayments, and student loan debt.
Directs the Secretary to study the interest rates and fees charged to private student loan borrowers. Limits the collection fee on defaulted federal student loans and the total interest and fees that can be imposed on such loan borrowers.
Requires institutions of higher education that enroll students receiving assistance, and tout the employment prospects of their graduates, to make information publicly available concerning graduates' employment, earnings, and loan defaults. Establishes a settlement and appeals process for federal student loan borrowers who suffer economic losses from violation of their rights. Makes institutions of higher education liable for the total amount of a federal student loan if they provide incentives to admissions officers to secure student enrollments or financial aid. Requires lenders to provide borrowers with an easy and unbiased means of designating an overpayment as a prepayment or payment against federal student loan principal.