In mid-March, Congresswoman Jaime Herrera Beutler, R-Battle Ground, reintroduced the Student Loan Disclosure Transparency Act, according to a news release.
The bill is co-led by Rep. Abigail Spanberger, D-Virginia, and cosponsored by many bipartisan representatives in the House.
This bipartisan legislation requires that student borrowers who apply for and accept federal student loans receive a separate monthly loan disclosure statement with information on projected payments, accrued interest, total cost of attendance and other personalized details in easy and understandable terms.
“Students who choose to further their education deserve simplicity and transparency in the student loan process. The lack of clarity around student loans today is contributing to this nation’s student loan debt crisis, and it’s why I’m leading bipartisan legislation to address this issue. This bill will help set up Southwest Washington students for success by empowering them to make the best decisions for their educational and financial future,” Herrera Beutler said in the news release.
According to the release, the Higher Education Act (HEA) currently requires disclosures at three points: disbursement, at or prior to repayment and during repayment. The Student Loan Disclosure Transparency Act would improve transparency across the entire life of the loan while a borrower attends college and during any period of repayment, deferment, forbearance or delinquency, according to Herrera Beutler.
