Press Releases

Reps. Jim Banks and Emmanuel Cleaver Reintroduce Legislation to Make Student Loan Applications Simpler & Easy to Understand

Washington, D.C. – Today, Congressman Jim Banks (R-IN) and Congressman Emmanuel Cleaver II (D-MO) reintroduced the Student Loan Disclosure Modernization Act, which would modernize and simplify the Department of Education’s (ED) Plain Language Disclosure Form to help the loan applicant better understand the terms, conditions, and debt they are incurring.  This legislation would explain legal and financial terms such as annual percentage rate (APR), or the period of repayment, in plain language to better educate applicants before they sign the loan. It also would require the Plain Language Disclosure Form to be signed every time the student took out a new loan to ensure transparency.

Said Rep. Banks, “The cost of higher education in America is out of control and determining how to pay for such an investment is a major component of the college decision-making process.  While the Department of Education (ED) offers low-interest loans to those seeking assistance, not enough is being done to educate Americans about the loans they are applying for and the debt burden they are incurring.

“Transparency is key as aspiring students make decisions that could impact their lives for years to come.  In fact, as of last year, 53 members of Congress still owed a balance on their student loans. The ED must take the lead in improving student loan applications and this bill will help continue this process.”

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Congressman Jim Banks represents Indiana’s 3^rd Congressional District and serves on the House Armed Services Committee, Committee on Veterans Affairs, and Committee on Education and the Workforce.  All press inquiries may be directed to tw.arrighi@mail.house.gov.