The STUDENT Act (S. 2764) would improve transparency around the true cost of federal student loans by requiring a new disclosure: the total amount of interest that would be paid over the life of a loan. This disclosure would be added to the information already provided to borrowers, using the standard repayment plan determined by the borrower’s total outstanding principal across all federal loans. In short, borrowers would see, in their loan disclosures, how much interest they would pay in total if they kept the standard repayment schedule. The change is codified as an amendment to the Higher Education Act of 1965. It would apply to federal student loans and would rely on the standard repayment plan that corresponds to the borrower’s combined loan principal. The bill was introduced in the Senate and referred to the Committee on Health, Education, Labor, and Pensions.
Key Points
- 1Purpose: Require a new mandated disclosure of the total interest to be paid over the life of a loan to enhance transparency for borrowers.
- 2Legal basis: Amends Section 455(p) of the Higher Education Act of 1965 to add this disclosure requirement; it builds on existing disclosure requirements under section 433(a).
- 3How it’s calculated: The total interest is calculated using the standard repayment plan that applies based on the borrower’s total outstanding principal across all federal loans.
- 4Scope: Applies to federal student loans (described as “certain Federal student loans” in the bill text); the calculation framework uses the borrower’s overall loan portfolio to select the applicable standard plan.
- 5Legislative status: Introduced in the Senate on September 10, 2025 by Ms. Ernst and several co-sponsors; referred to the Committee on Health, Education, Labor, and Pensions.