U.S. Rep. Randy Feenstra (R-IA) on Feb. 21 sponsored legislation that would provide student loan applicants with an upfront estimate of the total amount of interest they would have to pay on a federal student loan, making them aware of the actual amount they would end up paying over the life of a loan.
“When students consider the total cost of a college degree, interest payments on student loans should be a transparent component of their financial calculations,” the congressman said on Monday.
The Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act, H.R. 1125, would provide student loan applicants with 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, according to a bill summary provided by Rep. Feenstra’s office.
“The STUDENT Act provides students with the information they need to make sound financial decisions when it comes to their education,” said Rep. Feenstra. “As a father of four, these are the common-sense tools that every family should have at their disposal when considering the full cost of college.”
H.R. 1125, which Rep. Feenstra introduced with two GOP original cosponsors, including U.S. Rep. Mariannette Miller-Meeks (R-IA), is the companion bill to the same-named S. 469, sponsored on Feb. 16 by U.S. Sen. Joni Ernst (R-IA) alongside five original cosponsors, including U.S. Sen. Maggie Hassan (D-NH).