Text: S.234 — 116th Congress (2019-2020)All Information (Except Text)

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Introduced in Senate (01/28/2019)


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 following 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 Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Transparency in Student Lending Act”.

SEC. 2. Required disclosures.

Section 455(p) of the Higher Education Act of 1965 (20 U.S.C. 1087e(p)) is amended—

(1) by striking “Each institution” and inserting the following:

“(1) IN GENERAL.—Each institution”; and

(2) by adding at the end the following:

“(2) DISCLOSURE OF APR PRIOR TO DISBURSEMENT.—In addition to the disclosures required under paragraph (1), each institution and contractor described in such paragraph shall disclose to a borrower before disbursement of a loan made under this part, in writing and in a form the borrower may keep, the annual percentage rate applicable to the loan, taking into account—

“(A) the amount of the loan;

“(B) the stated interest rate of the loan;

“(C) the standard term for a loan of the same type;

“(D) any fees or additional costs associated with the loan; and

“(E) any capitalization of interest on the loan.”.


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