Spanberger Helps Introduce Bipartisan Legislation to Support Student Loan Borrowers, Increase Transparency in Federal Student Loan Disclosures
Bipartisan Bill Would Give Borrowers Regular, Pertinent Information Related to Projected Payments, Accrued Interest, & Other Personalized Details
Washington, August 19, 2019
HENRICO, V.A. – U.S. Representative Abigail Spanberger helped introduce bipartisan legislation to increase transparency in the federal student loan process and to give borrowers additional tools to understand and decrease their student debt burdens.
The Student Loan Disclosure Transparency Act would require separate, monthly disclosures to student loan borrowers regarding their projected payments, accrued interest, total cost of attendance, and other personalized details in understandable terms. This requirement would give students more information as they begin to manage their finances and understand the significant financial commitment associated with taking on student loan debt. Additionally, the bill would require these regular monthly disclosures throughout the life of a federal loan.
“Students who attend college are making an enormous investment in their futures and the long-term strength of their communities. Unfortunately, too many Central Virginia students and graduates are crippled by the weight of their student loan debt. This financial burden can stunt their ability to buy a home, start a business, and pursue their career goals,” said Spanberger. “I’m proud to help introduce this bill alongside House colleagues from both sides of the aisle. This bill is an important first step toward delivering the transparency that borrowers need to take control of their financial future and make informed, responsible decisions. We can and should do more to equip our young people with the tools they need to work, invest, and thrive across our Central Virginia communities—and I’ll keep fighting to advance this legislation and to promote greater financial literacy among all students.”
The Student Loan Disclosure Transparency Act would improve transparency across the entire life of the federal loan while the borrower attends college and during any period of repayment, deferment, forbearance, or delinquency. Additionally, the bill would help encourage student borrowers to pay interest fees and other costs before graduation.
The Spanberger-backed legislation is endorsed by the Bipartisan Policy Center, the National Association of Student Personnel Administrators (NASPA), the Association of American Colleges and Universities (AAC&U), and the American Association of Community Colleges (AACC).
The bipartisan bill is led by U.S. Representatives Donna Shalala (D-FL-27) and Matt Gaetz (R-FL-01). Additional cosponsors include U.S. Representatives Chris Stewart (R-UT-02), Ben McAdams (D-UT-04) and Jaime Herrera Beutler (R-WA-03).