Section 1 Short title
This Act may be cited as the “Transparency in Student Lending Act”.
Transparency in Student Lending Act
A BILL
To amend the Higher Education Act of 1965 to require the disclosure of the annual percentage rates applicable to Federal student loans.
Sec. 2 Required disclosures
Section 455(p) of the Higher Education Act of 1965 (20 U.S.C. 1087e(p)) is amended—
by striking “Each institution” and inserting the following:
“(1) In general—Each institution”
by adding at the end the following:
“(2) Disclosure of APR at time of application—In addition to the disclosures required under paragraph (1), each institution and contractor described in such paragraph shall disclose, as part of the application material provided to a borrower of a loan made under this part, the estimated annual percentage rate applicable to the loan, taking into account—
“(A) the stated interest rate of the loan; and
“(B) any fees or additional costs associated with the loan.”