STUDENT Act
- Bill Number
- H.R. 6134
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-11-19: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2025-12-05T21:59:41Z
AI-Generated Summary
Purpose
The STUDENT Act (H.R. 6134) aims to increase transparency in federal student loans by requiring lenders to disclose the total interest that borrowers would pay over the full life of the loan. This helps borrowers better understand the long-term cost of their debt before signing.
Key Provisions
- Disclosure Requirement: Lenders must include in loan disclosures (under section 433(a) of the Higher Education Act) the estimated total interest payable over the loan's lifetime.
- Calculation Basis: The interest estimate uses the standard repayment plan, determined by the borrower's total outstanding principal across all their loans.
- Scope: Applies to certain federal student loans under Title IV, Part B of the Higher Education Act (these are loans like Federal Family Education Loans, or FFEL, which are government-backed but issued by private lenders).
- Short Title: Officially named the "Student Transparency for Understanding Decisions in Education Net Terms Act" or "STUDENT Act."
Significant Changes to Existing Law
- Amends Section 455(p) of the Higher Education Act of 1965 (20 U.S.C. 1087e(p)), which already requires some disclosures for these loans.
- Adds a new subparagraph (2) mandating the total lifetime interest disclosure, building on existing rules without altering repayment plans or loan terms themselves.
- Expands current disclosure obligations to include this forward-looking estimate, which was not previously required.
Potential Impacts
- On Citizens (Borrowers): Provides clearer information on total loan costs, enabling more informed decisions about borrowing, repayment options, or avoiding unnecessary debt. Could reduce surprises in long-term payments for students and families.
- On Government Agencies: The U.S. Department of Education will need to update guidance, forms, and oversight for lenders to ensure compliance, potentially increasing administrative workload but improving program transparency.
- On International Relations: No direct impact, as this focuses on domestic federal student aid.
- Broader Effects: May encourage borrowers to explore income-driven repayment plans or loan forgiveness options, indirectly influencing student debt levels (currently over $1.7 trillion nationwide).
Main Stakeholders Affected
- Primary: Federal student loan borrowers, especially those with FFEL program loans, who gain access to better cost estimates.
- Secondary: Private lenders and loan servicers participating in federal programs, who must implement the new disclosure.
- Tertiary: Higher education institutions (colleges and universities), which may see indirect effects on enrollment or advising as students weigh costs more carefully; and the U.S. Department of Education, responsible for enforcement.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protection in federal lending by mandating transparent disclosures, aligning with broader laws like the Truth in Lending Act (which requires clear credit cost info). No major challenges anticipated, as it builds on existing statutory authority without creating new entitlements.
- Constitutional: Neutral; involves congressional regulation of federal spending and education policy under the Spending Clause, with no free speech or privacy concerns raised.
- Political: Addresses growing concerns over student debt affordability and transparency, potentially appealing across party lines by empowering individuals without increasing government spending. Could set precedent for similar disclosures in other federal aid programs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Hinson, Ashley [R-IA-2], Rep. Nunn, Zachary [R-IA-3]
Recent Actions
- 2025-11-19: Referred to the House Committee on Education and Workforce.
- 2025-11-19: Introduced in House
- 2025-11-19: Introduced in House
Bill Versions
- Student Transparency for Understanding Decisions in Education Net Terms Act — issued 2025-11-19 — PDF (2 pages)