Ernst Leads Bipartisan Effort to Give Students Clear Estimate of College Costs

The bipartisan bill gives prospective students an estimate of the total amount of interest they would pay on a federal loan.
WASHINGTON – U.S. Senators Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), Ashley Moody (R-Fla.), Amy Klobuchar (D-Minn.), Maggie Hassan (D-N.H.), and Tim Kaine (D-Va.) are introducing a bipartisan bill to provide more transparency to students and families before taking out a federal loan.
TheStudent Transparency for Understanding Decisions in Education Net Terms (STUDENT) Actpulls back the curtain to give prospective students and families a clear estimate of the total amount of interest they would owe based on the outstanding principal of all the students’ loans.
“The only time students should be given acheat sheetis to reveal the true cost of college tuition,”said Senator Ernst.“My bipartisan bill will pull back the curtain and give our students and their families the tools they need to make the best decisions for their financial future.”
“As college students return to school, many are overwhelmed watching interest pile up on loans they never understood in the first place. OurSTUDENT Act, along with other legislation I’ve introduced, shines a light on the true costs that students and families face,”saidSenatorGrassley.“By increasing transparency, our legislation helps students make more informed decisions and empowers them to succeed.”
“What some young people may not understand before attending college or university is the full cost of repaying those student loans, which can add up to thousands more dollars than the principal due to interest payments,”saidSenator Moody.“Students and families should understand the full weight of this financial decision, and I am proud to co-sponsor legislation to bring more transparency to this process and empower students to make the best choice for their financial future.”
“Students and their families need to understand the true cost of student loans before taking on any debt,”said Senator Klobuchar. “Our bipartisan bill will increase transparency of the student loan process – providing families with the information they need to make the best decision for their futures.”
“Taking on student debt is a major financial commitment, and student borrowers have a right to understand exactly what that commitment means in real dollars,”said Senator Hassan. “As I continue to work to lower costs for families, this bipartisan bill will require the federal government to be upfront about the total interest cost of student loans so that student borrowers can make informed decisions about their financial futures.”
"Students make better choices when you have the information necessary to do so. They need to understand the impact of the interest they will be charged, and this bill provides this vital information,”said Steve McCullough, President and CEO of Iowa Student Loan Liquidity Corporation.
Background:
Ernst has long supported students who want to pursue higher education. Earlier this year, her bipartisanFamily Farm and Small Business Exemption Act, which keeps higher education accessible for Iowa farm families, became law as part of theOne Big Beautiful Bill.
Ernst alsocosponsoredtheFree Application for Federal Student Aid (FAFSA) Deadline Actthat became law, ensuring that the FAFSA form is available by Oct. 1 every year so students can have even greater certainty about the cost of higher education.
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