To provide for the development of a student loan clearinghouse.

1. Adds SEC. 802. STUDENT LOAN CLEARINGHOUSE at the end of title VIII

   Adds a section

   In S. 1642 · Reported to Senate

   "(2) to disseminate information concerning those policies, procedures, and practices.".

   Inserted: SEC. 802. STUDENT LOAN CLEARINGHOUSE.

   Inserted: (a) Development.--Not later than 180 days after the date of enactment of this Act, the Secretary of Education shall establish 1 or more clearinghouses of information on student loans (including loans under parts B and D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a et seq.) and private loans, for both undergraduate and graduate students) for use by prospective borrowers or any person desiring information regarding available interest rates and other terms from lenders. Such a clearinghouse shall--

   Inserted: (1) have no affiliation with any institution of higher education or any lender;

   Inserted: (2) accept nothing of value from any lender, guaranty agency, or any entity affiliated with a lender or guaranty agency, except that the clearinghouse may establish a flat fee to be charged to each listed lender, based on the costs necessary to establish and maintain the clearinghouse;

   Inserted: (3) provide information regarding the interest rates, fees, borrower benefits, and any other matter that the Department of Education determines relevant to enable prospective borrowers to select a lender;

   Inserted: (4) provide interest rate information that complies with the Federal Trade Commission guidelines for consumer credit term disclosures; and

   Inserted: (5) be a nonprofit entity.

   Inserted: (b) Publication of List.--The Secretary of Education shall publish a list of clearinghouses described in subsection (a) on the website of the Department of Education and such list shall be updated not less often than every 90 days.

   Inserted: (c) Disclosure.--Beginning on the date the first clearinghouse described in subsection (a) is established, each institution of higher education that receives Federal assistance under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) and that designates 1 or more lenders as preferred, suggested, or otherwise recommended shall include a standard disclosure developed by the Secretary of Education on all materials that reference such lenders to inform students that the students might find a more attractive loan, with a lower interest rate, by visiting a clearinghouse described in subsection (a).

   Inserted: (d) Report.--Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit a report to Congress on whether students are using a clearinghouse described in subsection (a) to find and secure a student loan. The report shall assess whether students could have received a more attractive loan, one with a lower interest rate or better benefits, by using a clearinghouse described in subsection (a) instead of a preferred lender list.

   Original wording

   At the end of title VIII, add the following:

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As printed