Rep. Jaime Herrera Beutler, R-Battle Ground, joined five colleagues in Congress last week in introducing the Student Loan Disclosure Transparency Act of 2019.
The bill would require lenders to send student borrowers a separate monthly statement with detailed information on accrued interest, projected payments and the total lifetime cost of the loan.
“I remember heading to college and weighing my options, stressing over expenses and trying to navigate the best path for my future. The challenges I hear from college students today are similar, and a lack of clarity and tools is contributing to this nation’s student loan debt crisis,” Herrera Beutler said in a media release. “We owe it to our students to increase transparency when they sign for a loan; the process should be simple and understandable, with the goal of setting up every young person for success.”
Currently, the law under the Higher Education Act requires communication from the lender at three points: disbursement, prior to repayment and during repayment. The proposed legislation would require ongoing monthly updates from the lender to the borrower.
The bill was introduced by Rep. Donna Shalala, D-Fla. It is also co-sponsored by Rep. Matt Gaetz, R-Fla; Rep. Chris Stewart, R-Utah; Rep. Ben McAdams, D-Utah; and Rep. Abigail Spanberger, D-Va.