The bipartisan bill gives prospective students an estimate of the total amount of interest they would pay on a federal loan.
WASHINGTON, D.C. – U.S. Senators Ashley Moody (R-Fla.), Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), Maggie Hassan (D-N.H.), and Tim Kaine (D-Va.) are introducing a bipartisan bill to provide more transparency to students and families before taking out a federal loan.
The Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act pulls back the curtain to give prospective students and families a clear estimate of the total amount of interest they would owe based on the outstanding principal of all the students’ loans.
Senator Ashley Moody said, “What some young people may not understand before attending college or university is the full cost of repaying those student loans, which can add up to thousands more dollars than the principal due to interest payments. Students and families should understand the full weight of this financial decision, and I am proud to co-sponsor legislation to bring more transparency to this process and empower students to make the best choice for their financial future.”
Senator Joni Ernst said, “The only time students should be given a cheat sheet is to reveal the true cost of college tuition. My bipartisan bill will pull back the curtain and give our students and their families the tools they need to make the best decisions for their financial future.”
Senator Chuck Grassley said,“As college students return to school, many are overwhelmed watching interest pile up on loans they never understood in the first place. Our STUDENT Act, along with other legislation I’ve introduced, shines a light on the true costs that students and families face. By increasing transparency, our legislation helps students make more informed decisions and empowers them to succeed.”
Senator Amy Klobuchar said, “Students and their families need to understand the true cost of student loans before taking on any debt. Our bipartisan bill will increase transparency of the student loan process – providing families with the information they need to make the best decision for their futures.”
Senator Maggie Hassan said, “Taking on student debt is a major financial commitment, and student borrowers have a right to understand exactly what that commitment means in real dollars. As I continue to work to lower costs for families, this bipartisan bill will require the federal government to be upfront about the total interest cost of student loans so that student borrowers can make informed decisions about their financial futures.”
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