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IN HB1397
Bill
Status
1/13/2016
Primary Sponsor
Terri Jo Austin
Click for details
AI Summary
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Requires postsecondary educational institutions to include information about federal education loans in all printed and online financial aid materials and private loan applications, highlighting flexible repayment options (income-based repayment, loan forgiveness) and income-independent availability.
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Mandates institutions provide written disclosures with private loan information showing whether rates are fixed or variable, warning that rates can fluctuate based on market conditions and credit ratings, and advising students to compare terms before accepting loans.
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Requires institutions providing lists of private loan lenders to explain the basis for each lender's inclusion and state that applicants can choose any lender, plus disclose general loan information available through each lender.
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Mandates institutions report annually to the Commission for Higher Education (by December 1) on student borrowing statistics by credential type, including number and percentage of borrowers, total principal borrowed, and average cumulative principal.
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Requires institutions to make annual borrowing data publicly available on their websites and upon request, and prohibits approving private loans without first informing students of all unused federal and state financial aid available to them.
Legislative Description
Education loan information. Requires a postsecondary educational institution to provide information regarding: (1) federal education loans in all printed and online financial aid materials issued or distributed by the institution and with private loan applications provided or made available by the institution; and (2) private loan information with any private loan information included as part of the institution's financial aid or loan package and with any list of private loan lenders provided by the institution. Requires, before December 1 of each year, a postsecondary educational institution to: (1) provide to the commission for higher education; (2) make available on the
Last Action
First reading: referred to Committee on Education
1/13/2016