Private Student Loan Transparency and Improvement Act of 2007

An original bill to establish requirements for private lenders to protect student borrowers receiving private educational loans, and for other purposes.

4/21/2008--Reported to Senate without amendment. (This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Private Student Loan Transparency and Improvement Act of 2007 - Title I: Preventing Unfair and Deceptive Private Educational Lending Practices and Eliminating Conflicts of Interest -
(Sec. 101) Amends the Truth in Lending Act to prohibit a private educational lender from:
(1) offering or providing any gift to specified educational institutions or their personnel in exchange for any advantage or consideration provided to such lender related to its educational loan activities; or
(2) engaging in revenue sharing with such institutions.
Prohibits such lender from marketing loans in any way that implies the institution endorses the lender's private educational loans (co-branding).
Prohibits an employee in the financial aid office of an educational institution who has responsibilities regarding financial aid, and also serves on an advisory group established by a lender, from receiving anything of value from such lender. States it is unlawful for a lender to impose a fee or penalty for early repayment or prepayment of any private educational loan.
Subjects violations of this Act to civil liability. Title II: Improved Disclosures for Private Educational Loans -
(Sec. 201) Sets forth mandatory terms and disclosures governing private educational loans, including applications and solicitations without the requirement of an application. Requires the lender to disclose before the loan transaction is consummated the terms governing the interest rate and payments. Applies the Truth in Lending Act to all private educational loans. Title III: College Affordability -
(Sec. 301) Requires the appropriate federal financial supervisory agency to give a private educational lender credit toward meeting community credit needs, for purposes of the Community Reinvestment Act of 1977, for making low-cost private educational loans to low-income borrowers.
Title IV: Financial Literacy
(Sec. 401) Directs the Secretary of the Treasury to engage in specified coordinated education efforts to enhance financial literacy among students at institutions of higher education. Directs the Financial Literacy and Education Commission to report to Congress on the state of financial education among students at institutions of higher education. Title V: Study and Report on Nonindividual Information -
(Sec. 501) Directs the Comptroller General to study and report to Congress on the impact on borrowers of the inclusion of nonindividual factors, including cohort default rate, accreditation, and graduation rate at institutions of higher education, used in the underwriting criteria to determine the pricing of private educational loans. Requires such study to examine:
(1) whether and to what extent the inclusion of nonindividual factors increases access to such loans for borrowers who lack credit history; or results in less favorable rates for them; and
(2) affects the types of private educational loan products and rates available at certain institutions of higher education. Requires also an assessment of the extent to which the use of nonindividual factors in underwriting may have a disparate impact on the pricing of private educational loans, based on gender, race, income level, and institution of higher education.

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Sponsor

• Sen. Christopher Dodd [D, CT]

Committees

• Senate Banking, Housing, and Urban Affairs

Amendments

This bill has no amendments.

Amendments to S.2894

Number	Status	Purpose

Bill Status

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Introduced		Voted on by Senate		Voted on by House		Considered By President		Bill Becomes Law
April 21, 2008

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All Bill Actions

• Added to calendar on Apr 21, 2008: Placed on Senate Legislative Calendar under General Orders. Calendar No. 702..
• Apr 21, 2008: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Dodd. With written report No. 110-327.
• Introduced on Apr 21, 2008.

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Related Issue Areas:

• Students
• Student loan funds
• Student aid
• Signs and symbols
• 25 more
• School personnel
• Restrictive trade practices
• Personal budgets
• Minorities
• Liability (Law)
• Law
• Higher education
• Gifts
• Emblems
• Education
• Debtor and creditor
• Consumers
• Consumer education
• Consumer credit
• Congressional reporting requirements
• Congressional investigations
• Congress
• Conflict of interests
• Community development banking
• Communications
• College costs
• College administration
• Business
• Black colleges
• Finance

Data from the Congressional Research Service

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Blog Coverage

April 20, 2008 S. 2894, An original bill to establish requirements for private ...

S. 2894 would establish requirements for private lenders to protect student borrowers receiving private educational loans.... Vote on This Bill: For | Against.

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April 20, 2008 Bill Action: Scheduled for Debate: S. 2894: An original bill to ...

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April 20, 2008 Bill Introduced: S.2894 An original bill to establish requirements ...

An original bill to establish requirements for private lenders to protect student borrowers receiving private educational loans, and for other purposes.

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