WASHINGTON, D.C. – Today, Rep. Burgess Owens (UT-04), Chairman of the Higher Education and Workforce Development Subcommittee, co-sponsored the Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act that would provide student loan applicants with an estimate of the total amount of interest they would pay – based on a standard 10-year repayment plan – during or prior to accepting a loan.
“Predatory lending practices and excessive borrowing is burdening students and families in Utah with massive amounts of student debt,” said Rep. Owens. “The STUDENT Act offers increased transparency in the college financing process and equips families with the necessary information to make sound financial decisions.”
Current law does not require the disclosure of the total interest amount that a student loan applicant would pay based on the applicable repayment plan. As a result, many students are not aware of the actual amount they will end up paying over the life of a loan. The STUDENT Act makes the disclosure of the total interest amount required during or before an applicant takes out a loan.
The full text of the legislation is available here.
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