Legislative Tracker: Consumer Information & Transparency

Legislative Tracker Logo On this page, you'll find proposals to increase student and family awareness of institutional policies or provide students and borrowers with additional information.

H.R. 7359 - CFPB Student Loan Integrity and Transparency Act

Sponsor: Rep. Porter [D-CA]
Introduced: 2/14/24
NASFAA Summary & Analysis: This bill establishes a framework of coordination between the Bureau of Consumer Financial Protection and ED to assist borrowers who submit complaints about their private or federal student loans. The agencies will share relevant information with one another, such as the complaints they receive from student loan borrowers. Both agencies will also put into place safeguards to protect the confidentiality of the data shared. 

S. 3524 – Streamlining More Accessible, Reliable and Transparent Educational Resources for Debt Act (SMARTER Debt Act)

Sponsored: Sen. Manchin [D-WV]
Introduced: 12/14/2023
NASFAA Summary & Analysis: This bill would require that ED create an interactive online portal to provide accessible information on student loan forgiveness and repayment options, including eligibility requirements, application information, and submission deadlines. Through the dashboard, students and families would be able to search for loan forgiveness and repayment options by key categories, like program of study, career field, and type of student loan. 

S. 3404 – Student Loan Borrower Bill of Rights Act 

Sponsored: Sen. Durbin [D-IL]
Introduced: 12/05/2023
NASFAA Summary & Analysis: This bill would implement consistent student loan servicing and disclosure standards for both federal and private student loans. This bill would allow a borrower’s record of default to be removed from their credit report history once they have paid in full the amount owed on the defaulted loan. The bill also outlines what loan servicers would need to include in their disclosures moving forward, such as the payment due date, the contact information for the servicer and where the borrower should send any communication and payment, as well as information on alternative repayment options (including options for loan consolidation and forgiveness). Disclosure and outreach requirements specifically for at-risk borrowers are also included. This bill would also require loan servicers to establish Repayment Specialists who would be responsible for helping at-risk borrowers stay out of default. Loan servicers would also be required to establish their own timely error resolution processes in the event that borrowers want to inquire about any issues related to their student loans. 

S. 3362 – Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act 

Sponsor: Sen. Tillis [R-NC]
Introduced: 11/29/2023
NASFAA Summary and Analysis: This bill would lower the foreign gift reporting threshold for higher education institutions from $250,000 to $50,000. For certain countries, deemed “of concern”, institutions would be required to report any gift received regardless of the amount. Additionally, some institutions would need to develop a policy that would require certain employees of the institution to report foreign gifts valued at a certain amount and contracts over $5,000, as well as maintain a publicly available and searchable database with this information. Some institutions would also be required to submit annual reports to ED outlining any investments with a foreign entity or country of concern. Institutions that do not comply with the requirements outlined in the bill could be subject to fines. 

H.R. 6134 – Truth in Tuition Act of 2023

Sponsor: Rep. Cartwright [D-PA]
Introduced: 11/01/2023
NASFAA Summary & Analysis: This bill would require institutions to provide each student admitted to an undergraduate or graduate program with a multi-year tuition and fee schedule or give each student a single-year tuition and fee schedule and a non-binding multi-year estimate of the individual cost of their education after all financial aid is awarded. 

H.R.4616 — Informed Student Borrowing Act of 2023

Sponsor: Rep. Grotham [R-WI]
Introduced: 07/13/2023
NASFAA Summary & Analysis: This bill would require students receiving Direct Loans and parents receiving parent PLUS loans to complete EDs Entrance Counseling, renamed to just Counseling by this act, each award year that they plan to borrow Federal Loans, instead of just once at the beginning of their education career. The bill would also require students to actively acknowledge receipt of loan counseling materials. In addition to existing counseling requirements, institutions will need to provide disclosure materials including sample monthly repayment amounts based on the 10-year repayment plan and the most used income-driven repayment (IDR) plan, median annual earnings of students at the institution, percent of borrowers no longer enrolled and in repayment, completion rate for undergraduate borrowers, and the annual percentage rate of the loan based on a 10-year repayment plan so that students can compare to private loans. Additionally, work study notifications would be required to include an explanation that funds are awarded upon completion of work over time. 

H.R.5042/S.2629 — Higher Education Reform and Opportunity Act 

Sponsor:  Roy [Rep.-R-TX] & Lee [Sen.-R-UT]
Introduced: 07/27/2023
NASFAA Summary & Analysis: This bill would consolidate Federal Student Loans into one option, Federal Direct Simplification Loans, and phase out all income-contingent repayment plans. It would allow dependent undergraduates to borrow up to $30,000 over the course of their study, independent undergraduates to borrow up to $60,000, and graduate students to borrow up to $74,000. The undergraduate repayment term would be 15 years, and the graduate/professional repayment term would be 25 years. The bill would also require Title IV participating institutions to publish student outcomes data, including the number of students receiving federal and state grants and loans, default and non-repayment rates, as well as completion rates and other outcomes. The bill would make changes to the student loan repayment system, requiring institutions to pay an annual default rate fine in proportion to the amount of outstanding debt that students are not making regular on-time payments.

S.1970 — Informed Student Borrowing Act of 2023

Sponsor: Sen. Daines [R-MT]
Introduced: 06/14/2023
NASFAA Summary & Analysis: This bill would require students receiving Direct Loans and parents receiving parent PLUS loans to complete the Department of Education’s Entrance Counseling, renamed to just Counseling by this act, each award year that they plan to borrow Federal Loans, instead of just once at the beginning of their education career. The bill would also require students to actively acknowledge receipt of loan counseling materials. In addition to existing counseling requirements, institutions will need to provide disclosure materials including sample monthly repayment amounts based on the 10-year repayment plan and the most used income-driven repayment (IDR) plan, median annual earnings of students at the institution, percent of borrowers no longer enrolled and in repayment, completion rate for undergraduate borrowers, and the annual percentage rate of the loan based on a 10-year repayment plan so that students can compare to private loans. Additionally, work study notifications would be required to include an explanation that funds are awarded upon completion of work over time. 

 S.1972 — Lowering Education Costs and Debt Act

Sponsor: Sen. Cassidy [R-LA]
Introduced: 06/14/2023
NASFAA Summary & Analysis: This is a package of 5 bills including the College Transparency Act, the Understanding the True Cost of College Act, the Informed Student Borrowing Act, the Graduate Opportunity and Affordable Loans Act, and the Streamlining Accountability and Value in Education for Students Act. Together, these bills seek to simplify and increase transparency in the loan borrowing and repayment process by reducing the number of repayment plan options from nine plans to two, standardizing financial aid award letters, limiting graduate student borrowing, and reforming college data reporting systems to provide better outcomes data for students and families in the college search process. 

H.R.3453 — Higher Standards for Higher Education Act

Sponsor: Rep. Van Duyne [R-TX]
Introduced: 05/17/2023
NASFAA Summary & Analysis: This bill would require that ED collect and report additional data on default and other metrics, including the number of current and former students who enter federal student loan repayment and the percentage of those students who default before the end of the second succeeding fiscal year following the fiscal year in which the students entered repayment. Reporting would be required for each program of study at institutions for which ED already annually reports cohort default data. This bill would apply only to higher education institutions with endowments of $1 billion or more. 

H.R.3452 — Combating Predatory Lending in Higher Education Act of 2023
Sponsor: Rep. Van Duyne [R-TX]
Introduced: 05/17/2023
NASFAA Summary & Analysis: This bill would include PLUS loans made to graduate students and parents in the calculation for an institution's Cohort Default Rate (CDR). 

H.R.2957/S.1349  — College Transparency Act

Sponsor: Krishnamoorthi [Rep.-D-IL] & Cassidy [Sen.-R-LA]
Introduced: 04/27/2023
NASFAA Summary & Analysis: This bill would create a new "postsecondary student data system," thereby repealing the ban on the federal government from collecting student-level data. The bill aims to modernize the federal data reporting system, thereby reducing data reporting burdens on institutions. The data system would contain data elements related to student enrollment, persistence, retention, transfer, and completion measures. The bill contains several privacy provisions and includes prohibitions on the collection of certain information, including religion, course grades, and citizenship status, among others. Ultimately, the new data collection will be used to create a user-friendly portal for the public to compare institutions. The bill's provisions apply to all institutions of higher education that receive Title IV federal student aid.

H.R.1682/S.889 — Protecting Students from Worthless Degrees Act

Sponsor: Krishnamoorthi [Rep.-D-IL] & Merkley [Sen.-D-OR]
Introduced: 03/21/2023
NASFAA Summary & Analysis: This bill aims to provide consumer protections for students by putting into place measures that would result in students being prepared to work in the occupation or profession of their choosing after successful completion of a program. No later than December 31 following the date of the enactment of this bill, the most senior executive officer of the institution will need to submit a certification to ED indicating that the institution and each of the eligible gainful employment programs included in the approval certification of the institution, meet the requirements outlined in the bill.

H.R.1371 — Student Loan Disclosure Transparency Act of 2023

Sponsor: Spanberger [Rep.-D-VA] 
Introduced: 03/03/2023
NASFAA Summary & Analysis: This bill would require that a written or electronic disclosure be sent before a student loan is disbursed outlining the principal loan amount, interest rate on the loan, and how many monthly payments will need to be made on the loan. The number of monthly payments and the projected amount of that payment will be determined by following a standard repayment plan, unless the borrower has otherwise selected another repayment plan. This disclosure would also include the number of months a borrower will have before their repayment period begins and the estimated balance that the borrower will owe on the loan, including a total estimate of the interest that will be capitalized. In addition to this disclosure before loan disbursement, the bill would require that each eligible lender of student loans distribute monthly disclosures to their borrowers outlining similar components to those previously mentioned. 

H.R.1311 — College Cost Transparency and Student Protection Act

Sponsor: McClain [Rep.-R-MI]
Introduced: 03/01/2023
NASFAA Summary & Analysis: This bill would amend the HEA and would require that ED publish requirements for financial aid offers used by institutions of higher education for currently enrolled and prospective students. This bill outlines that financial aid offers may not be referred to as an award letter, will need to include standardized terms and definitions, and establishes formatting requirements for the aid offers. It does not require an aid offer template. Additionally, the bill will turn the aid offer into a two-step process by which students are first offered aid only for their direct educational expenses. Students would then opt in to requesting aid for indirect expenses, after which a more customized aid offer with their estimated indirect expenses and aid eligibility is issued. Loans could not be presented in a way that "indicates or implies that such loans reduce the amount owed to the institution or reduce the out-of-pocket costs.”

S.530/H.R.1216 — Know Before You Owe Federal Student Loan Act of 2023

Sponsors: Grassley [Sen.-R-IA] & Miller-Meeks [Rep.-R-IA] 
Introduced: 02/27/2023
NASFAA Summary & Analysis: This bill would require entrance counseling, renamed “Pre-Loan Counseling,” to be administered before the disbursement of each new loan in each award year. This bill would also create periodic disclosures, which would be sent to every loan borrower on a quarterly basis, which contain updated information on how much they’ve borrowed, any interest capitalization that has occurred and their individual borrower information. 

S.531/H.R.1214 — Net Price Calculator Improvement Act

Sponsors: Grassley [Sen.-R-IA] & Guthrie [Rep.-R-KY] 
Introduced: 02/27/2023
NASFAA Summary & Analysis: This bill would allow the creation of a centralized website to allow students to compare estimates of their net price for individual institutions across multiple colleges at once. It would include the institution’s net price, as well as all components of the institution’s Cost of Attendance, as well as the estimated total need-based grant aid and merit-based grant aid, from Federal, State, and institutional sources, that may be available to the student. 

S.528/H.R.1198 — Understanding the True Cost of College Act of 2023

Sponsors: Grassley [Sen.-R-IA] & Kim [Rep.-R-CA]
Introduced: 02/27/2023
NASFAA Summary & Analysis: This bill would mandate standard terminology and a standard format for financial aid aid offers. The standardized items—such as the cost of attendance (listed direct and indirect costs), tuition, and fees—would need to be included on the first page of the aid offer. The aid offer must also include housing, food, books, supplies, and transportation, among other items in the cost of attendance. Grants and scholarships would need to be grouped together in their own section with a disclosure that grant aid does not need to be repaid. Subsidized and unsubsidized loans would need to be clearly labeled and include a disclosure that loans have to be repaid. Additionally, this bill would not permit that Federal Work-Study (FWS) be included in the financial aid category and a disclosure would need to indicate to students that FWS positions are subject to the availability of qualified employment and that these funds are paid over time throughout their employment.

Legislative Tracker Overview   |   Archive: Consumer Information & Transparency

Publication Date: 2/14/2024


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