The Consumer Bankers Association (CBA) has forwarded correspondence to a pair of lawmakers in support of the Student Loan Disclosure Modernization Act.
CBA officials said the letter to the bill’s authors, Reps. Luke Messer (R-IN) and Emanuel Cleaver, II (D-MO), demonstrates backing of policies unleashing the private marketplace’s ability to serve students’ higher education goals while ensuring the federal government serves those most in need in a responsible manner.
The lawmakers said the bill requires the Department of Education to streamline the plain language disclosure form and more clearly explain the costs and terms of federal student loans. The current disclosure form is six pages long, runs more than 6,000 words, and is written in legal terminology.
“Over-lending by the federal government has left an entire generation with mountains of debt and has contributed to increasing tuition costs,” Richard Hunt, CBA president and CEO, said. “Banks already offer their customers a very clear, know-before-you-owe disclosure form. It is time to right-size federal student lending. CBA members are committed to helping students finance their higher education goals without overburdening their futures.”
CBA represents America’s retail banks above $10 billion in assets while advancing legislation and promoting policies geared toward creating a stronger industry and economy Member institutions account for 1.6 million jobs in America, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans.