Ernst Leads Bipartisan Effort to Give Students a Clear Picture of College Costs Upfront

WASHINGTON – As students and families across the United States face mounting student loan debt, U.S. Senator Joni Ernst (R-Iowa) is leading a bipartisan effort, supported by her fellow Iowan, Senator Chuck Grassley (R-Iowa), to provide more transparency to prospective students before they take out a loan.

The Student Transparency for Understanding Decisions in Education Net Terms (STUDENT) Act 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. The bipartisan bill was introduced by Senators Ernst and Maggie Hassan (D-N.H.), and cosponsored by Senators Grassley, Joe Manchin (D-W.V.), Ron Johnson (R-Wis.), and Tim Kaine (D-Va.). Supporting organizations include Iowa College Aid and Iowa Student Loan Liquidity Corporation.

“The one 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 the tools they need to make the best decisions for their financial future,” said Ernst.

“Too many students find themselves overwhelmed as interest piles up on loans they never understood in the first place,” said Grassley. “The answer isn’t to cancel loans after the fact, it’s to provide students with greater transparency before they borrow. This bill will help students in Iowa and across the country get ahead by making informed and responsible borrowing decisions.”

“The STUDENT Act gives students and their families the information necessary to understand their federal student loans and their repayment obligations,” said Mark Wiederspan, Executive Director of Iowa College Aid. “We hope this information helps make the decision to borrow more transparent, and helps students learn the best way to finance and achieve their postsecondary education.”

You can find full bill text here.

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