The Student Loan Transparency Act, sponsored by Sen. Barbara Bailey, has received full approval from the Legislature and will soon become law. Senate Bill 5022 would make student lending more transparent by requiring higher-education institutions to provide simple and concise information to students about the costs of borrowing.
“The more information that our college students have about their financing options the better,” said Bailey, who has led efforts by the Senate majority to improve college affordability and access. “The Student Loan Transparency Act will help students make better decisions about their educational financing by providing information to student-borrowers in a way that makes sense.”
The notification must include an estimate of the:
- Total amount of student loans;
- Potential payoff amounts;
- Monthly repayment amounts, including principal and interest; and
- Percentage of federal-loan limits a student has reached.
The Majority Coalition Caucus made huge strides tackling student debt when it cut college tuition in 2015. Bailey, R-Oak Harbor, spearheaded the effort, known as the College Affordability Program.
“This law will provide more transparency regarding the real costs of college as student loan debt accumulates,” she added.