STUDENT Act
- Bill Number
- S. 2764
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-09-10: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2025-12-05T06:48:16Z
AI-Generated Summary
Purpose
The STUDENT Act (S. 2764) aims to increase transparency for federal student loan borrowers by requiring the disclosure of the total interest that would accumulate over the entire life of certain loans. This helps borrowers better understand the long-term financial costs before taking out or managing loans.
Key Provisions
- Disclosure Requirement: Amends Section 455(p) of the Higher Education Act of 1965 to mandate that disclosures for loans under Part B (Federal Family Education Loan Program, or FFEL) include the total interest payable over the loan's lifetime.
- Calculation Basis: The total interest is calculated using the standard repayment plan, which is determined by the borrower's total outstanding principal across all their loans.
- Integration with Existing Disclosures: This new information must be included in the standard loan disclosure form required under Section 433(a) of the Act.
Significant Changes to Existing Law
- Previously, disclosures under Section 455(p) focused on basic loan terms for Part B loans but did not require estimating total lifetime interest.
- The amendment restructures the section to add a new subparagraph (2), explicitly mandating the interest calculation alongside existing requirements, without altering other disclosure elements.
Potential Impacts
- On Borrowers: Provides clearer information on total costs, potentially leading to more informed borrowing decisions and reduced over-borrowing.
- On Government Agencies: The Department of Education and loan servicers will need to update systems and forms to include these calculations, which may involve minor administrative costs but promote better consumer protection.
- On Citizens: Enhances financial literacy among students and families, possibly influencing college affordability and debt management nationwide.
- International Relations: No direct impact, as this is a domestic education policy.
Main Stakeholders Affected
- Student Borrowers: Primary beneficiaries, gaining better insight into loan costs.
- Federal Loan Servicers and Lenders: Responsible for implementing and providing the new disclosures.
- Department of Education: Oversees compliance and may need to revise regulations or guidance.
- Educational Institutions: Indirectly affected, as clearer loan info could influence enrollment and financial aid counseling.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing consumer protection in federal lending laws by aligning with broader transparency goals in the Higher Education Act; no conflicts with current statutes anticipated.
- Constitutional: No significant issues, as it involves federal spending and regulation of interstate commerce in education financing.
- Political: Bipartisan sponsorship (introduced by Sens. Ernst, Klobuchar, Kaine, Moody, Grassley, and Hassan) signals broad support for student debt relief measures; could set precedent for further loan transparency reforms without major controversy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Sen. Klobuchar, Amy [D-MN], Sen. Kaine, Tim [D-VA], Sen. Moody, Ashley [R-FL], Sen. Grassley, Chuck [R-IA], Sen. Hassan, Margaret Wood [D-NH], Sen. Schmitt, Eric [R-MO], Sen. Ricketts, Pete [R-NE]
Recent Actions
- 2025-09-10: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2025-09-10: Introduced in Senate
Bill Versions
- Student Transparency for Understanding Decisions in Education Net Terms Act — issued 2025-09-10 — PDF (2 pages)