CHARLESTON, W.Va. – U.S. Senators Joe Manchin (D-W.Va.) and Tim Scott (R-S.C.), along with U.S. Representatives Jim Banks (R-IN-03) and Emanuel Cleaver (D-MO-05), urged U.S. Secretary of Education Miguel Cardona to direct the U.S. Department of Education to simplify the student loan disclosure forms and to disclose the terms of Direct Loans to borrowers, including students and families, prior to disbursement.
Student loan disclosure forms are essential in helping students and families understand the costs and terms of their student loan options. Right now, these forms are complicated, lengthy and filled with unhelpful legal jargon. Our bipartisan bill would increase transparency for students and families by simplifying the forms – which just makes sense. But the Department of Education can make these commonsense changes now by simplifying the forms. We urge Secretary Cardona to streamline and modernize the student loan disclosure forms to help empower applicants to be responsible borrowers.”
Currently, the Department of Education does not inform borrowers of consequential financial information, such as interest rates and origination fees before they take out a Direct Loan. In April, Senators Manchin and Scott reintroduced the bipartisan Student Loan Disclosure Modernization Act, which seeks to increase transparency for those looking to acquire student loans on a federal level. The legislation would provide applicants with a clear and succinct disclosure form, empowering them to be responsible borrowers.