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CBA Supports APR Disclosures for Federal Student Loan Borrowers
Jacqueline Ortiz Ramsay
Washington, D.C.– Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement following the re-introduction of the Transparency in Student Lending Act, H.R. 1283, by Representatives Randy Hultgren (R-IL), Luke Messer (R-IN), and David Scott (D-GA).
“Many federal student loan borrowers learn the true cost of their education much too late. As a result, we believe the Department of Education must help borrowers receive the information necessary to fully understand the true cost of their loan before they owe. Providing students and families with a disclosure on their annual percentage rate (APR) would assist them in making sound financial decisions. We commend Representatives Hultgren, Messer, and Scott for introducing legislation demanding the same level of transparency from the federal government as consumers expect and receive from our member banks in the private student loan market.”
H.R. 1283 would require the Department of Education to disclose a loan’s APR to federal student loan borrowers at the time of application. Banks already provide such disclosures to borrowers.
To read Richard Hunt’s op-ed in Morning Consult promoting the need for a “Know Before You Owe” initiative for federal student loans, please click here.
Click here for the announcement from Representatives Randy Hultgren (R-IL), Luke Messer (R-IN), and David Scott (D-GA).
About Consumer Bankers Association
The Consumer Bankers Association is the only national trade focused exclusively on retail banking. Established in 1919, the association is a leading voice in the banking industry and Washington, representing members who employ nearly two million Americans, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans.