Hawkeye Reporter

Sens. Chuck Grassley and Joni Ernst, both Republicans from Iowa, have reintroduced the Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act. The bipartisan bill aims to provide students and families with clearer information about the total interest they would owe on federal student loans before borrowing.

Grassley stated, “As college students return to school, many are overwhelmed watching interest pile up on loans they never understood in the first place. Our STUDENT Act, along with other legislation I’ve introduced, shines a light on the true costs that students and families face. By increasing transparency, our legislation helps students make more informed decisions and empowers them to succeed.”

Ernst added, “The only time students should be given a cheat sheet is to reveal the true cost of college tuition. My bipartisan bill will pull back the curtain and give our students and their families the tools they need to make the best decisions for their financial future.”

Steve McCullough, President and CEO of Iowa Student Loan Liquidity Corporation, commented on the measure: "Students make better choices when you have the information necessary to do so. They need to understand the impact of the interest they will be charged, and this bill provides this vital information.”

The STUDENT Act has additional cosponsors including Sens. Amy Klobuchar (D-Minn.), Tim Kaine (D-Va.), and Maggie Hassan (D-N.H.).

Currently, federal law does not require loan applicants to be told how much total interest they will pay under their repayment plan. This lack of disclosure can leave borrowers unaware of what their long-term debt burden will actually be.

If enacted, the STUDENT Act would require that prospective borrowers receive an estimate of total interest owed during or before taking out a loan.

Grassley has also introduced other bipartisan bills focused on helping students better understand college costs. These include efforts such as improving net price calculators for early estimates of higher education expenses; creating standardized financial aid award letters for easier comparison between schools; and requiring annual counseling about likely loan costs relative to income before new federal student loans are disbursed.