,i  #aaeth ,,congress  #b;d ,session    
,h4 ,r4 #fdgc  ,,in ,,the ,,house ,,of  
,,representatives  ,july #bc1 #bjah,ms4 
,de,lauro introduced the following bill2
 which was referred to the ,committee on
 ,education and the ,workforce  ,a      
,,bill  ,to increase transparency with  
respect to loan repayment options for   
,federal student loan borrowers4  #a4   
,short title ,this ,act may be cited as 
the ,transparency in ,student ,loan     
,consultation ,act of #bjah4  #b4       
,findings ,congress finds as follows3   
7#a7 ,loopholes in ,federal law allow   
institutions of higher education and    
third party consultants that contract   
with such institutions to provide       
borrowers with inaccurate or incomplete 
information1 including with respect to  
borrower repayment options4  7#b7 ,the  
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajja et seq47 does not       
contain borrower-centered provisions    
that would allow the ,secretary of      
,education to establish minimum         

standards governing communications that 
institutions of higher education and    
third party consultants may have with   
borrowers who are no longer enrolled at 
such an institution4  7#c7 ,the ,higher 
,education ,act of #aife requires that  
institutions of higher education provide
 certain information to borrowers about 
the borrower's student loans when the   
borrower enters and exits the student   
loan program1 but such ,act does not    
require or permit the ,department of    
,education to oversee communications    
between the institutions or third party 
consultants and the borrowers after the 
borrowers are no longer enrolled at an  
institution4  7#d7 ,in a report released
 ,april1 #bf1 #bjah1 the ,government    
,accountability ,office 7hereinafter    
referred to as ,,gao7 found that some   
institutions of higher education hired  
third party consultants that encouraged 
student loan borrowers with past-due    
payments to put loans in forbearance1 an
 option that allows borrowers to        

temporarily postpone payments4  7#e7    
,loan forbearance can help borrowers    
avoid default in the short-term1 but    
ultimately increases loan costs over    
time4  7#f7 ,the ,,gao found that #e of 
the #i third party consultants hired by 
institutions of higher education1 that  
served about #hjj out of #a1cjj         
institutions1 encouraged forbearance    
over potentially more beneficial        
options4  7#g7 ,the ,,gao also found    
that #d of the #e third party           
consultants provided inaccurate or      
incomplete information to borrowers     
about their repayment options4          
,inaccurate information about the       
consequences of default could cause a   
borrower to feel undue pressure to      
choose forbearance1 even when the       
borrower is eligible for more favorable 
repayment and postponement options4     
7#h7 ,borrowers who only receive a      
forbearance application may inaccurately
 assume that forbearance is the only or 
preferred option to avoid default4  7#i7

 ,moreover1 borrowers may miss the      
opportunity to learn about other1       
potentially more favorable repayment and
 postponement options from the          
,department of ,education's loan        
servicers1 who are responsible for      
counseling borrowers and approving      
forbearance requests4  7#aj7 ,student   
loan borrowers deserve accurate and     
complete information about loan         
repayment options to make informed      
decisions about loan repayment that are 
in their best interest1 not the interest
 of institutions of higher education or 
third party consultants4  #c4 ,loan     
repayment transparency  ,section        
#dhg7;a7 of the ,higher ,education ,act 
of #aife 7#bj ,u4,s4,c4 #ajid7 is       
amended by adding at the end the        
following3  7#cj7 ,the institution will 
ensure that any information related to  
student loan repayment that is provided 
to a borrower who is in repayment status
 or who will enter repayment status     
within #f months1 whether provided      

directly by the institution or by a     
third party servicer who has a contract 
with the institution--  7,a7 is accurate
 and complete2  7,b7 if such information
 is related to the provision1           
explanation1 selection1 or revision of  
any loan repayment or consolidation     
option1 includes a list and explanation 
of each of the loan repayment options   
and ,federal loan consolidation options 
available to the borrower1 including an 
explanation of any special options that 
may be available due to the particular  
circumstances of the borrower2 and  7,c7
 with respect to a borrower who has     
failed to make an installment payment   
when due1 or who is otherwise requesting
 default prevention1 aversion1 or debt  
management counseling1 includes an      
explanation of the borrower's repayment 
status and repayment schedule1 and a    
description of each option for which the
 borrower is eligible to make1 schedule1
 postpone1 or reduce loan payments1     
including loan forgiveness1             

cancellation1 deferment1 and forbearance
 opportunities4  4