Washington, DC – Today, Congressman John Curtis (R-UT) spoke on the House floor, championing his Transparency in Student Lending Act. The legislation would improve the information provided to students and families taking on federal loans to finance higher education, before they’re disbursed. Click here to read more.

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“College education can be a life-changing investment, but it comes at a tremendous cost. Right now, 44 million Americans collectively hold $1.5 trillion in student loan debt. I represent the youngest congressional district in the country and many of my constituents are struggling with student debt. With this legislation, we can help young people make fully informed financial decisions for their families and their futures.”

Background

The Transparency in Student Lending Act would require disclosure of the annual percentage rate (APR) for federal student loans before disbursement. The APR assists borrowers by showing the true cost of a loan, helping students and their families make more informed financial decisions. Currently, borrowers of private student loans receive this information, but borrowers of loans issued by the Department of Education do not.

The APR is expressed as a single percentage number that represents the actual yearly costs of funds over the term of the loan and takes into account the stated interest rate of the loan and any fees or additional costs associated with the loan. Click here to read more.

The full speech, as prepared for delivery, is below:

Mr. Speaker, I’m pleased to introduce the Transparency in Student Lending Act. 

College education can be a life-changing investment, but it comes at a tremendous cost. Right now, 44 million Americans collectively hold $1.5 trillion in student loan debt.

The Federal Government lends 90 percent of all education loans.

However, unlike any other lender, the Federal Government does not provide students with complete information about the total cost of their loan—leaving borrowers unaware of hidden costs and fees until they enter repayment.

I’ve introduced this bill to require complete information be provided to students before they take out a loan.

Mr. Speaker, I represent the youngest congressional district in the country and many of my constituents are struggling with student debt. With this legislation, we can help young people make fully informed financial decisions for their families and their futures.

I yield my time.