Transparency in Student Lending Act

Transparency in Student Lending Act

This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to expand disclosure requirements for an institution of higher education (IHE) that participates in the Direct Loan program. Specifically, it requires an IHE to disclose, in federal student loan application materials, the annual percentage rate applicable to a Direct Loan.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5838 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5838

To amend the Higher Education Act of 1965 to require the disclosure of 
    the annual percentage rates applicable to Federal student loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2016

Mr. Hultgren (for himself, Mr. Carney, Mr. Messer, and Mr. David Scott 
 of Georgia) introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 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 at time of application.--In 
        addition to the disclosures required under paragraph (1), each 
        institution and contractor described in such paragraph shall 
        disclose, as part of the application material provided to a 
        borrower of a loan made under this part, the estimated annual 
        percentage rate applicable to the loan, taking into account--
                    ``(A) the stated interest rate of the loan; and
                    ``(B) any fees or additional costs associated with 
                the loan.''.
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