A group of Senate Republicans have unveiled a piece of college affordability legislation that would aim to give prospective college students an estimated total of the amount of interest they would accrue on their student loans.
The Student Transparency for Understanding Decisions in Education Net Terms, or STUDENT Act, was introduced by Sen. Joni Ernst (R-Iowa), who said the goal of the bill is to provide students with a “clear picture” about the true costs of higher education.
According to Ernst, the measure would provide student loan applicants with an estimate of the total amount of interest they would pay during or prior to accepting a loan. The interest accrual would be based on a standard 10-year repayment plan. Additionally, the interest calculation would be required to be disclosed to a student, while or before the applicant takes out a loan.
Sens. Chuck Grassley (R-Iowa) and Ron Johnson (R-Wis.) signed on as original cosponsors. None of the original cosigners sit on the Senate Health, Education, Labor, and Pensions Committee, but the legislation has been referred to the committee.
In the legislation’s unveiling, Ernst and Grassley also highlighted a number of bipartisan college affordability bills, including the Net Price Calculator Improvement Act, Understanding the True Cost of College Act of 2021, and the Know Before You Owe Federal Student Loan Act.
For more information on legislation related to institutional policies and financial aid awareness check out NASFAA’s legislative tracker.
Publication Date: 3/28/2022