,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #daic  ,,in ,,the ,,house ,,of  
,,representatives  ,august #af1         
#bjai,ms4 ,shalala 7for herself1 ,mr4   
,gaetz1 ,mr4 ,stewart1 ,mr4 ,mc,adams1  
,ms4 ,herrera ,beutler1 and ,ms4        
,spanberger7 introduced the following   
bill2 which was referred to the         
,committee on ,education and ,labor  ,a 
,,bill  ,to improve ,federal student    
loan disclosures1 and for other         
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,student ,loan      
,disclosure ,transparency ,act of #bjai4
  #b4 ,required disclosures before      
disbursement ,section #dcc7;a7 of the   
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajhc7;a77 is amended--  7#a7 
by striking and at the end of paragraph 
7#ah72  7#b7 by striking the period and 
inserting 2 and at the end of paragraph 
7#ai72 and  7#c7 by adding at the end   
the following new paragraph3  7#bj7 a   
separate written or electronic          
statement1 in simple and understandable 

terms1 showing--  7,a7 for the loan or  
loans being disbursed-- 7i7 the         
principal amount of the loan1 the stated
 interest rate on the loan1 the number  
of required monthly payments to be made 
on the loan 7which shall be based on a  
standard repayment plan or1 in the case 
of a borrower who has selected another  
repayment plan1 on the repayment plan   
selected by the borrower71 and the      
estimated number of months before the   
start of the repayment period for the   
loan 7based on the expected date on     
which the repayment period is to begin  
or the deferment period under           
#dbh;,b7d77#a7 is to end1 as            
applicable72  7ii7 the estimated balance
 to be owed by the borrower on such loan
 7including1 if applicable1 the         
estimated amount of interest to be      
capitalized7 as of the scheduled date on
 which the repayment period is to begin 
or the deferment period under           
#dbh;,b7d77#a7 is to end1 as applicable1
 and an estimate of the projected       

monthly payment2 and  7iii7 an estimate 
of the aggregate amount the borrower    
will pay for the loan or loans1         
including the total amount of monthly   
payments made over the life of the loan 
plus the amount of any charges for the  
loan1 such as an origination fee2  7,b7 
for each other loan owed by the borrower
 to the lender1 the information         
described in clauses 7i7 through 7iii7  
of subparagraph 7,a72 and  7,c7 an      
estimate of the total cumulative amount 
the borrower will pay for all loans owed
 by the borrower to that lender1        
including the loan being disbursed1 as  
determined by calculating the sum of the
 estimated aggregate amounts the        
borrower will pay for each loan in      
accordance with subparagraphs 7,a7 and  
7,b74  4  #c4 ,disclosure of projected  
monthly payment amounts ,section #dcc of
 the ,higher ,education ,act of #aife   
7#bj ,u4,s4,c4 #ajhc7 is further        
amended-- 7#a7 in subsection 7b71 by    
amending paragraph 7#i7 to read as      

follows3  7#i7 information of interest  
charges1 accrual1 and payments1         
including-- 7,a7 the projected total of 
interest charges which the borrower will
 pay on the loan or loans1 assuming that
 the borrower makes payments exactly in 
accordance with the repayment schedule2 
7,b7 projections of the borrower's      
monthly repayment amount1 assuming      
interest accrual resulting from         
capitalization of interest while the    
borrower1 or the student on whose behalf
 the loan is made1 is in school 7as     
applicable71 which shall disclose the   
cost to the borrower of--  7i7          
capitalizing the interest2 and  7ii7    
paying the interest as the interest     
accrues2 and  7,c7 if the borrower has  
already paid interest on the loan or    
loans1 the amount of interest paid2  2  
and  7#b7 by striking subsection 7d71   
and redesignating subsections 7e7 and   
7f7 as subsections 7d7 and 7e71         
respectively4  #d4 ,required monthly    
disclosures ,section #dcc7;d7 of the    

,higher ,education ,act of #aife1 as so 
redesignated by section #c of this ,act1
 is amended--  7#a7 in the subsection   
header1 by striking during repayment and
 inserting for the life of the loan2 and
  7#b7 by amending paragraph 7#a7 to    
read as follows3  7#a7 ,pertinent       
information about loans provided on a   
monthly basis ,each eligible lender     
shall provide the borrower of one or    
more loans made1 insured1 or guaranteed 
under this part or part ,d with a       
written monthly bill or statement       
7including through electronic means71 in
 simple and understandable terms1 of    
pertinent loan information described in 
this paragraph that--  7,a7 with respect
 to a borrower who is in repayment      
status1 shall include a bill that       
corresponds to each payment installment 
time period in which a payment is due2  
7,b7 with respect to a borrower who is  
not in repayment status1 shall be a     
statement for each month of the period  
during which the borrower is not        

required to make a payment to the       
eligible lender1 including while the    
borrower is in school and during periods
 of deferment or forbearance2  7,c7     
shall be provided to the borrower of a  
loan not more than #cj days after the   
first disbursement of the loan1 and     
monthly thereafter for the life of the  
loan2 and  7,d7 shall include1 for all  
outstanding loans made1 insured1 or     
guaranteed under this part or part ,d by
 the eligible lender to the borrower--  
7i7 the original principal amount of    
each of the borrower's loans owed to    
that lender1 and the original principal 
amount of those loans in the aggregate2 
7ii7 the borrower's current balance on  
each loan and on all loans in the       
aggregate1 as of the time of the bill or
 statement1 as applicable2  7iii7 the   
interest rate on each loan2  7iv7 the   
total amount the borrower has paid in   
interest on each loan and on all loans  
in the aggregate2  7v7 the amount of    
interest that has accumulated on each   

loan and on all loans in the aggregate  
since the last statement1 and the total 
interest accrued to date on each loan   
and on all loans in the aggregate during
 the life of the loans2  7vi7 the       
aggregate amount the borrower has paid  
for each loan and all loans in the      
aggregate1 including the amount the     
borrower has paid in interest1 the      
amount the borrower has paid in fees1   
and the amount the borrower has paid    
against the principal2  7vii7 an        
estimate of the aggregate amount the    
borrower will pay during the life of the
 loan for each loan and on all loans in 
the aggregate1 including the total      
amount of monthly payments made over the
 life of the loans plus the amount of   
any charges for the loans1 such as      
origination fees2  7viii7 a description 
of each fee the borrower has been       
charged for the most recently preceding 
installment time period2  7ix7 the date 
by which the borrower needs to make a   
payment in order to avoid additional    

fees and the amount of such payment and 
the amount of such fees2  7x7 with      
respect to a borrower who is not in     
repayment1 the estimated balance to be  
owed by the borrower on each loan and on
 all loans in the aggregate1 and an     
estimate of the projected monthly       
payment on each loan and on all loans in
 the aggregate1 on the estimated date   
the borrower will enter 7or re-enter7   
repayment status2  7xi7 a reminder that 
the borrower has the option to change   
repayment plans1 a list of the names of 
the repayment plans available to the    
borrower1 a link to the appropriate page
 of the ,department's website to obtain 
a more detailed description of the      
repayment plans1 and directions for the 
borrower to request a change in         
repayment plan2  7xii7 an explanation-- 
7,i7 that the borrower has the option to
 pay the interest that accrues on each  
loan while the borrower is a student at 
an institution of higher education or   
during a period of deferment or         

forbearance1 if applicable2 and  7,,ii7 
if the borrower does not pay such       
interest while attending an institution 
or during a period of deferment or      
forbearance1 any accumulated interest on
 the loan will be capitalized when the  
loan goes into repayment1 resulting in  
more interest being paid over the life  
of the loan2  7xiii7 an explanation that
 making even small payments of any      
amount while the borrower is a student  
at an institution of higher education1  
or during a period of deferment or      
forbearance1 if applicable1 can help to 
offset interest accrual over the life of
 the loan2  7xiv7 the lender's or loan  
servicer's address1 toll-free phone     
number1 and website for payment and     
billing error purposes1 including       
information about how a borrower can    
make voluntary payments when a loan is  
not in repayment status2 and  7xv7 an   
explanation to borrowers that loans made
 under this part of part ,d have        
significant protections for borrowers   

that aren't offered by the private      
market1 including a number of           
income-driven repayment options1 which  
offer flexible repayments terms and loan
 forgiveness for struggling borrowers4  
4  #e4 ,report to ,congress on consumer 
testing ,not later than #bd months after
 the date of enactment of this ,act1 the
 ,secretary shall-- 7#a7 conduct        
consumer testing by obtaining feedback  
from individuals1 including borrowers   
and prospective borrowers of loans under
 the ,higher ,education ,act of #aife1  
on the usefulness and effectiveness of  
disclosing monthly terms of loans under 
section #dcc of the ,higher ,education  
,act of #aife1 as amended by this ,act1 
to maximize borrowers' understanding of 
the terms and conditions of such loans2 
and  7#b7 submit to ,congress a report  
on the results of such consumer testing4
  #f4 ,effective date ,the amendments   
made by this ,act to the ,higher        
,education ,act of #aife shall take     
effect #ahj days after the date of      

enactment of this ,act4