U.S. Sens. Joni Ernst (R-IA) and Maggie Hassan (D-NH) introduced legislation that seeks to provide more transparency to college students before they take out a loan.
Their bill, the Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act, would provide applicants with an estimate of the total amount of interest they would pay on the loan before accepting it. The interest would be based on a standard 10-year repayment plan.
The bill is cosponsored by U.S. Sens. Chuck Grassley (R-IA), Joe Manchin (D-WV), Ron Johnson (R-WI), and Tim Kaine (D-VA).
“The one 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 the tools they need to make the best decisions for their financial future,” Ernst said.
The bill has the support of the Iowa College Aid and Iowa Student Loan Liquidity Corporation.
“The STUDENT Act gives students and their families the information necessary to understand their federal student loans and their repayment obligations,” said Mark Wiederspan, executive director of Iowa College Aid. “We hope this information helps make the decision to borrow more transparent and helps students learn the best way to finance and achieve their postsecondary education.”