[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3399 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3399

To amend the Higher Education Act of 1965 to require the disclosure of 
    the annual percentage rates applicable to Federal student loans.


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                   IN THE SENATE OF THE UNITED STATES

                           September 27, 2016

  Mr. Kirk (for himself and Mr. Enzi) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

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                                 A BILL


 
To amend the Higher Education Act of 1965 to require the disclosure of 
    the annual percentage rates applicable to Federal student loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transparency in Student Lending 
Act''.

SEC. 2. REQUIRED DISCLOSURES.

    Section 455(p) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(p)) is amended--
            (1) by striking ``Each institution'' and inserting the 
        following:
            ``(1) In general.--Each institution''; and
            (2) by adding at the end the following:
            ``(2) Disclosure of apr prior to disbursement.--In addition 
        to the disclosures required under paragraph (1), each 
        institution and contractor described in such paragraph shall 
        disclose to a borrower before disbursement of a loan made under 
        this part, in writing and in a form the borrower may keep, the 
        annual percentage rate applicable to the loan, taking into 
        account--
                    ``(A) the amount of the loan;
                    ``(B) the stated interest rate of the loan;
                    ``(C) the standard term for a loan of the same 
                type;
                    ``(D) any fees or additional costs associated with 
                the loan; and
                    ``(E) any capitalization of interest on the 
                loan.''.
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