H.R. 1371House118th Congress (2023-2025)In Committee

Student Loan Disclosure Transparency Act of 2023

Introduced March 3, 2023

AI-Generated Summary

Updated January 20, 2026 at 4:20 AM UTC

The Student Loan Disclosure Transparency Act of 2023 aims to make federal student loan information clearer for borrowers. It requires lenders to give simple, easy‑to‑understand disclosures before a loan is disbursed and to provide detailed monthly statements for the life of the loan. The law also mandates a consumer‑testing report to Congress. It affects anyone with federal student loans and the lenders or servicers that issue them.

Key Provisions

  • Requires a separate written or electronic statement before disbursement that plainly shows the loan’s principal, interest rate, payment schedule, estimated balance, total cost and similar details for any other loans the borrower has, plus a cumulative total.
  • Adds disclosure of projected monthly payments, including total interest to be paid, interest that will be capitalized, and any interest already paid.
  • Mandates monthly statements, delivered in simple language, that include balances, interest rates, payments made, fees, projected future payments, repayment‑plan options, and explanations of interest capitalization and borrower rights.
  • Changes the monthly statement header to apply for the entire life of the loan and sets timing – first statement within 30 days of disbursement and then each month thereafter.
  • Requires the Secretary of Education to conduct consumer testing on the usefulness of these disclosures and to report the findings to Congress within 24 months of enactment.
  • Sets the amendments to take effect 180 days after the law is enacted.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Education and the Workforce.

March 3, 2023

View full timeline
HouseIntro Referral

Introduced in House

March 3, 2023

HouseIntro Referral

Referred to the House Committee on Education and the Workforce.

March 3, 2023

Floor Debate

19 members

What members said about H.R. 1371 on the floor

11 Republicans8 Democrats
Bennie G. Thompson
Rep. Bennie G. ThompsonD-MS-2 · Jul 25, 2024

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in strong opposition to this unserious and politically motivated resolution. It is sad that today we are wasting time…

Mark E. Green
Rep. Mark E. GreenR-TN-7 · Jul 25, 2024

Mr. Speaker, pursuant to House Resolution 1376, I call up the resolution (H. Res. 1371) strongly condemning the Biden Administration and its Border Czar, Kamala Harris's, failure to secure the United…

Elise M. Stefanik
Rep. Elise M. StefanikR-NY-21 · Jul 25, 2024

Mr. Speaker, I rise to condemn Vice President Kamala Harris for her failed and dangerous policies as Joe Biden's border czar that caused the most catastrophic border crisis in modern history. No…

Pramila Jayapal
Rep. Pramila JayapalD-WA-7 · Jul 25, 2024

Mr. Speaker, I rise in strong opposition to this resolution. Here we go again. The Republican majority made their appropriations bills so extreme that they can't pass the vast majority of them with…

August Pfluger
Rep. August PflugerR-TX-11 · Jul 25, 2024

Mr. Speaker, I rise to offer support for H. Res. 1371, Strongly Condemning the Biden Administration and Its Border Czar, Kamala Harris's, Failure to Secure the United States Southern Border, and in…

Show 8 more
Nanette Diaz Barragán
Rep. Nanette Diaz BarragánD-CA-44 · Jul 25, 2024

Mr. Speaker, I thank Ranking Member Thompson for yielding. We should be offended at the lies. We should be offended that the American people are being lied to. We should be offended that kids were…

Timothy M. Kennedy
Rep. Timothy M. KennedyD-NY-26 · Jul 25, 2024

Mr. Speaker, I thank the gentleman for yielding time. Mr. Speaker, I rise today to discuss the border crisis, an issue my Republican colleagues are quick to pontificate on but refuse to address. At…

Daniel S. Goldman
Rep. Daniel S. GoldmanD-NY-10 · Jul 25, 2024

Mr. Speaker, I thank the ranking member for yielding. Mr. Speaker, I rise today to address the Republicans' desperate attempt to, yet again, use the official business of the House of Representatives…

Delia C. Ramirez
Rep. Delia C. RamirezD-IL-3 · Jul 25, 2024

Mr. Speaker, as I walked in here, all I heard was what I hear in my committee, constant criminalizing of immigrant communities. Let me tell you, I rise in strong opposition to H. Res. 1371. What this…

Beth Van Duyne
Rep. Beth Van DuyneR-TX-24 · Jul 25, 2024

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, I rise today in support of this necessary rebuke of Vice President Kamala Harris' abject failure to do anything meaningful to secure the…

Nathaniel Moran
Rep. Nathaniel MoranR-TX-1 · Jul 25, 2024

Mr. Speaker, I thank Chairman Green for yielding. Today, I rise in strong support of H.J. Res. 1371 introduced by Congresswoman Elise Stefanik. Each day, the failed policies of this administration…

Darrell Issa
Rep. Darrell IssaR-CA-48 · Jul 25, 2024

Mr. Speaker, I rise today in support of H. Res. 1371, and I stand before you for the fourth time requesting that my State's former attorney general, former U.S. Senator, and now Vice President and…

Carlos A. Gimenez
Rep. Carlos A. GimenezR-FL-28 · Jul 25, 2024

Mr. Speaker, I rise in support of H. Res. 1371. Mr. Speaker, in March 2021, President Biden proclaimed Vice President Kamala Harris as our Nation's border czar. Yet, over the last 3\1/2\ years, it is…

Show 6 more
Marjorie Taylor Greene
Rep. Marjorie Taylor GreeneR-GA-14 · Jul 25, 2024

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, since being appointed as border czar by President Joe Biden, Kamala Harris has undoubtedly been a complete failure in her job and has…

Monica De La Cruz
Rep. Monica De La CruzR-TX-15 · Jul 25, 2024

Mr. Speaker, this is a subject that is very, very close to me and my community. I am on the border of Texas, over 80 percent of my district being Hispanic. This is a resolution that I strongly…

Rudy Yakym III
Rep. Rudy Yakym IIIR-IN-2 · Jul 25, 2024

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, I rise in strong support of this resolution introduced by my colleague, Representative Stefanik. In March 2021, an Axios headline…

Katie Porter
Rep. Katie PorterD-CA-47 · Jul 25, 2024

Mr. Speaker, I was unable to be present to cast my vote today. Had I been present, I would have voted NAY on Roll Call No. 400.

Cori Bush
Rep. Cori BushD-MO-1 · Jul 25, 2024

Mr. Speaker, I was not present during today's vote series. Had I been present, I would have voted NAY on Roll Call No. 400.

Sam Graves
Rep. Sam GravesR-MO-6 · Jul 25, 2024

Mr. Speaker, I missed one Roll Call vote today. Had I been present, I would have voted ``YEA'' on Roll Call No. 400.

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in HouseIssued March 3, 2023

I

118th CONGRESS

1st Session

H. R. 1371

IN THE HOUSE OF REPRESENTATIVES

March 3, 2023

Ms. Spanberger (for herself, Mr. Waltz, Mrs. Chavez-DeRemer, Mr. Johnson of Ohio, Ms. Schrier, and Mr. Stanton) introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To improve Federal student loan disclosures, and for other purposes.

1.

Short title

This Act may be cited as the Student Loan Disclosure Transparency Act of 2023.

2.

Required disclosures before disbursement

Section 433(a) of the Higher Education Act of 1965 (20 U.S.C. 1083(a)) is amended—

(1)

by striking and at the end of paragraph (18);

(2)

by striking the period and inserting ; and at the end of paragraph (19); and

(3)

by adding at the end the following new paragraph:

(20)

a separate written or electronic statement, in simple and understandable terms, showing—

(A)

for the loan or loans being disbursed—

(i)

the principal amount of the loan, the stated interest rate on the loan, the number of required monthly payments to be made on the loan (which shall be based on a standard repayment plan or, in the case of a borrower who has selected another repayment plan, on the repayment plan selected by the borrower), and the estimated number of months before the start of the repayment period for the loan (based on the expected date on which the repayment period is to begin or the deferment period under 428B(d)(1) is to end, as applicable);

(ii)

the estimated balance to be owed by the borrower on such loan (including, if applicable, the estimated amount of interest to be capitalized) as of the scheduled date on which the repayment period is to begin or the deferment period under 428B(d)(1) is to end, as applicable, and an estimate of the projected monthly payment; and

(iii)

an estimate of the aggregate amount the borrower will pay for the loan or loans, including the total amount of monthly payments made over the life of the loan plus the amount of any charges for the loan, such as an origination fee;

(B)

for each other loan owed by the borrower to the lender, the information described in clauses (i) through (iii) of subparagraph (A); and

(C)

an estimate of the total cumulative amount the borrower will pay for all loans owed by the borrower to that lender, including the loan being disbursed, as determined by calculating the sum of the estimated aggregate amounts the borrower will pay for each loan in accordance with subparagraphs (A) and (B).

.

3.

Disclosure of projected monthly payment amounts

Section 433 of the Higher Education Act of 1965 (20 U.S.C. 1083) is further amended—

(1)

in subsection (b), by amending paragraph (9) to read as follows:

(9)

information of interest charges, accrual, and payments, including—

(A)

the projected total of interest charges which the borrower will pay on the loan or loans, assuming that the borrower makes payments exactly in accordance with the repayment schedule;

(B)

projections of the borrower’s monthly repayment amount, assuming interest accrual resulting from capitalization of interest while the borrower, or the student on whose behalf the loan is made, is in school (as applicable), which shall disclose the cost to the borrower of—

(i)

capitalizing the interest; and

(ii)

paying the interest as the interest accrues; and

(C)

if the borrower has already paid interest on the loan or loans, the amount of interest paid;

; and

(2)

by striking subsection (d), and redesignating subsections (e) and (f) as subsections (d) and (e), respectively.

4.

Required monthly disclosures

Section 433(d) of the Higher Education Act of 1965, as so redesignated by section 3 of this Act, is amended—

(1)

in the subsection header, by striking during repayment and inserting for the life of the loan; and

(2)

by amending paragraph (1) to read as follows:

(1)

Pertinent information about loans provided on a monthly basis

Each eligible lender shall provide the borrower of one or more loans made, insured, or guaranteed under this part or part D with a written monthly bill or statement (including through electronic means), in simple and understandable terms, of pertinent loan information described in this paragraph that—

(A)

with respect to a borrower who is in repayment status, shall include a bill that corresponds to each payment installment time period in which a payment is due;

(B)

with respect to a borrower who is not in repayment status, shall be a statement for each month of the period during which the borrower is not required to make a payment to the eligible lender, including while the borrower is in school and during periods of deferment or forbearance;

(C)

shall be provided to the borrower of a loan not more than 30 days after the first disbursement of the loan, and monthly thereafter for the life of the loan; and

(D)

shall include, for all outstanding loans made, insured, or guaranteed under this part or part D by the eligible lender to the borrower—

(i)

the original principal amount of each of the borrower’s loans owed to that lender, and the original principal amount of those loans in the aggregate;

(ii)

the borrower’s current balance on each loan and on all loans in the aggregate, as of the time of the bill or statement, as applicable;

(iii)

the interest rate on each loan;

(iv)

the total amount the borrower has paid in interest on each loan and on all loans in the aggregate;

(v)

the amount of interest that has accumulated on each loan and on all loans in the aggregate since the last statement, and the total interest accrued to date on each loan and on all loans in the aggregate during the life of the loans;

(vi)

the aggregate amount the borrower has paid for each loan and all loans in the aggregate, including the amount the borrower has paid in interest, the amount the borrower has paid in fees, and the amount the borrower has paid against the principal;

(vii)

an estimate of the aggregate amount the borrower will pay during the life of the loan for each loan and on all loans in the aggregate, including the total amount of monthly payments made over the life of the loans plus the amount of any charges for the loans, such as origination fees;

(viii)

a description of each fee the borrower has been charged for the most recently preceding installment time period;

(ix)

the date by which the borrower needs to make a payment in order to avoid additional fees and the amount of such payment and the amount of such fees;

(x)

with respect to a borrower who is not in repayment, the estimated balance to be owed by the borrower on each loan and on all loans in the aggregate, and an estimate of the projected monthly payment on each loan and on all loans in the aggregate, on the estimated date the borrower will enter (or re-enter) repayment status;

(xi)

a reminder that the borrower has the option to change repayment plans, a list of the names of the repayment plans available to the borrower, a link to the appropriate page of the Department's website to obtain a more detailed description of the repayment plans, and directions for the borrower to request a change in repayment plan;

(xii)

an explanation—

(I)

that the borrower has the option to pay the interest that accrues on each loan while the borrower is a student at an institution of higher education or during a period of deferment or forbearance, if applicable; and

(II)

if the borrower does not pay such interest while attending an institution or during a period of deferment or forbearance, any accumulated interest on the loan will be capitalized when the loan goes into repayment, resulting in more interest being paid over the life of the loan;

(xiii)

an explanation that making even small payments of any amount while the borrower is a student at an institution of higher education, or during a period of deferment or forbearance, if applicable, can help to offset interest accrual over the life of the loan;

(xiv)

the lender’s or loan servicer’s address, toll-free phone number, and website for payment and billing error purposes, including information about how a borrower can make voluntary payments when a loan is not in repayment status; and

(xv)

an explanation to borrowers that loans made under this part of part D have significant protections for borrowers that aren’t offered by the private market, including a number of income-driven repayment options, which offer flexible repayments terms and loan forgiveness for struggling borrowers.

.

5.

Report to Congress on consumer testing

Not later than 24 months after the date of enactment of this Act, the Secretary shall—

(1)

conduct consumer testing by obtaining feedback from individuals, including borrowers and prospective borrowers of loans under the Higher Education Act of 1965, on the usefulness and effectiveness of disclosing monthly terms of loans under section 433 of the Higher Education Act of 1965, as amended by this Act, to maximize borrowers’ understanding of the terms and conditions of such loans; and

(2)

submit to Congress a report on the results of such consumer testing.

6.

Effective date

The amendments made by this Act to the Higher Education Act of 1965 shall take effect 180 days after the date of enactment of this Act.