A local congresswoman is helping with legislation to support students who borrow money to attend college and increase transparency in the federal student loan system.
Representative Abigail Spanberger (D-7th) has helped to introduce the Student Loan Disclosure Transparency Act.
Under this bill, borrowers would have to get monthly disclosures regarding their projected payments accrued interest, total coast of attendance, and other personalized information in terms that are easily understood.
According to a release, this would give borrowers more information as they begin to manage their finances and understand the financial commitment associated with taking on student loan debt.
The bill would also require such monthly disclosures throughout the life of the 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. “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.”
The release says this bill would improve transparency across the entire life of the loan while the borrower is still attending college, and during any period of repayment, deferment, forbearance or delinquency.
It would also help encourage students borrowers to pay interest fees and other costs prior to graduating.
Representatives Donna Shalala (D-Florida) and Matt Gaetz (R-Florida) created the bill which has also been co-sponsored by Chris Stewart (R-Utah), Ben McAdams (D-Utah), and Jaime Herrera Beutler (R-Washington).