Summary

1/23/2013--Introduced.Know Before You Owe Private Student Loan Act of 2013 - Amends the Truth in Lending Act to require a lender, before issuing a private education loan for... Read More

Status

This bill was introduced on Jan 23, 2013, in a previous session of Congress, but was not passed.

Bill Text

A BILL

To amend the Truth in Lending Act and the Higher Education Act of 1965 to require certain creditors to obtain certifications from institutions of higher education, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Know Before You Owe Private Student Loan Act of 2013''.

SEC. 2. AMENDMENTS TO THE TRUTH IN LENDING ACT.

(a) In General.--Section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)) is amended-- (1) by striking paragraph (3) and inserting the following: ``(3) Institutional certification required.-- ``(A) In general.--Except as provided in subparagraph (B), before a creditor may issue any funds with respect to an extension of credit described in this subsection, the creditor shall obtain from the relevant institution of higher education where such loan is to be used for a student, such institution's certification of-- ``(i) the enrollment status of the student; ``(ii) the student's cost of attendance at the institution as determined by the institution under part F of title IV of the Higher Education Act of 1965; and ``(iii) the difference between-- ``(I) such cost of attendance; and ``(II) the student's estimated financial assistance, including such assistance received under title IV of the Higher Education Act of 1965 and other financial assistance known to the institution, as applicable. ``(B) Exception.--Notwithstanding subparagraph (A), a creditor may issue funds with respect to an extension of credit...

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Sentiment Map

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Nation

46 Supporting
61 Opposing
43% 57%

State: CA

7 Supporting
4 Opposing
64% 36%

District: 1st

1 Supporting
0 Opposing
100% 0%

Popularity Trend

Organizations Supporting

Consumer Action supports S 113 because it would require schools to counsel students before they sign on to expensive, even unnecessary, private student loan debt and inform them if they have any untapped federal loan eligibility. It would also require the prospective borrower’s school to confirm the student’s enrollment status, cost of attendance and estimated federal financial aid assistance before the private student loan is approved.

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Consumer Action 2 years ago

Organizations Opposing

No organizations opposing yet.

Users Supporting

I support S. 113: Know Before You Owe Private Student Loan Act of 2013 because I have a lot of close friends who are headed to college and I think that legislation to help these students succeed and get into their careers on the right foot is very important.

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VA
7
cindella204
VA-7
1 year ago

I support S. 113: Know Before You Owe Private Student Loan Act of 2013 because I personally have a large amount of students loans, and while they were necessary and I knew what I was getting into, many students do not, and it is tragic that so many young people are entering into their adult lives overburdened with debt.

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PA
7
aburke626
PA-7
1 year ago

Users Opposing

I oppose S. 113: Know Before You Owe Private Student Loan Act of 2013 because...If Durbin is behind it is terrible for America!

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MO
4
mackelby
MO-4
1 year ago

I oppose S. 113: Know Before You Owe Private Student Loan Act of 2013 You can't mortgage your way through life. The degrees of such students ought be called a degree in "corruption" if they can't or don't pay their bill.

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CA
6
EXPOSE-CAFR
CA-6
1 year ago

I oppose S. 113: Know Before You Owe Private Student Loan Act of 2013 because...I might consider supporting this if the federal government was included and had to show that it was responsible in loan collections, but it is not. .

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CT
1
howiem9
CT-1
2 years ago

I oppose S. 113: Know Before You Owe Private Student Loan Act of 2013. The federal government should get out of the loan-making business, especially to students - especially when the national debt is so remarkably huge (aka do not lend money that is not yours to lend). Federal loans are high-risk for students and if a crisis hits before the student can pay it back, they are unable to be forgiven the debt (as in case of bankruptcy due to caregiving circumstances). If the Federal Loan had not been available, a friend of mine would have waited to pursue a further degree until she either had a job which paid for some schooling or a bigger paycheck. No amount of financial counseling or warnings would have deterred her, because she was assured that a master's degree was what she needed. This bill is not the answer.

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PA
11
as1orig
PA-11
2 years ago

I oppose S. 113 ("A bill to amend the Truth in Lending Act and the Higher Education Act of") because...immediately the catch-all phrase "and for other purposes" makes me extremely cautious of the bill. The Student Loan program was taken over by the Federal Government under ObamaCare legislation. Now that it has been taken away from private loan sources, the government wants to make requirements on the colleges, which will require them to expend time and money to meet government regulations. Why not return the student loans to the private sector? Think of the taxpayer money saved, personnel time saved, and more jobs in the private sector and less jobs in the government sector. It would appear to be a win-win situation. The Federal government needs to be smaller and that action would help. Vote "NO" on S. 113.

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CO
7
Ruth
CO-7
2 years ago

Bill Summary

1/23/2013--Introduced.Know Before You Owe Private Student Loan Act of 2013 - Amends the Truth in Lending Act to require a lender, before issuing a private education loan for a student attending an institution of higher education (IHE), to obtain the IHE's certification of: (1) the student's enrollment status, (2) the student's cost of attendance, and (3) the difference between that cost and the student's estimated financial assistance. Eliminates the requirement that such lenders obtain a self-certification form from the private education loan applicant. Allows a lender to issue such loan without a certification if there is no response from the relevant IHE within 15 business days of the lender's request for the certification. Requires private educational lenders to: (1) send loan statements to borrowers at least once every three months a student is enrolled at an IHE; (2) notify the relevant IHE, in writing, of the loan amount and the student to whom it applies no later than the date funds are issued; and (3) submit an annual report to the Consumer Financial Protection Bureau (CFPB) containing information the CFPB requires concerning private student loans. Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require IHEs, before providing lenders with certifications, to determine whether students have exhausted their options for title IV assistance and notify borrowers of: (1) the availability of such assistance, (2) their ability to choose their own private educational lender, (3) the impact of the proposed private education loan on their eligibility for other financial assistance, and (4) their right to accept or reject a private education loan within 30 days of the lender's approval of their application and to cancel the loan within 3 business days of its consummation.

S. 112The Alpine Lakes Wilderness Additions and Pratt and Middle Fork Snoqualmie Rivers Protection Act S. 114The Fairness for Struggling Students Act