Senators Call for Greater Transparency for Student Loans

Last week, Senator Joe Manchin (D-WV) introduced the Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act. This bipartisan legislation would allow student loan applicants to access an estimate of the total amount of interest they would pay, based on a standard 10-year repayment plan, during or prior to accepting a loan. “Every student and their family deserve to know the full costs of taking out a loan to pay for college before they make such an important decision,” said Senator Manchin in a press release. “I’m proud to introduce the bipartisan STUDENT Act to provide greater transparency around student loan borrowing and ensure families have all of the facts necessary to learn the best way to finance a college education. I encourage my colleagues on both sides of the aisle to support this commonsense, bipartisan legislation.”

Legislation was also introduced by Senators John Thune (R-SD) and Bill Cassidy, MD (R-LA) to end the current suspension of student loan payments. Titled the Stop Reckless Student Loan Actions Act, the legislation would end the suspension of repayments on qualifying federal student loans and prohibit the president from cancelling federal student loans due to a national emergency. The Biden Administration’s Student Debt Relief Program is on hold as the Supreme Court considers its legality.