Messer Introduces Legislation to Help Reduce Student Loan Debt

Press Release

U.S. Rep. Luke Messer (R-IN) and Rep. Emanuel Cleaver, II (D-MO) today introduced bipartisan legislation to help combat student loan debt.

Messer and Cleaver's bill would make federal student loan disclosures easier to understand and aims to help reduce over-borrowing.

The Student Loan Disclosure Modernization Act, H.R. 4119, would require certain student loan disclosure forms to be simplified and consumer tested to make them easier to understand. The bill would also require students to sign the form every time they take out a new loan, acknowledging that they have read the form and understand the terms and conditions.

"This is a simple bill to make sure college students have full information about the loans they're getting to finance their education," Messer said. "Too often, students don't understand the terms of their loans and don't have a clear picture of how these loans will be paid back. Our goal with this is to empower students with information so they can make the best decisions about their education, finances and future."

"For way too long, student borrowers have been kept in the dark, trying to understand the terms and conditions of the loans they are incurring while pursuing higher education. This bill ensures that borrowers receive a plain language disclosure form with each loan so they are empowered to make a sound financial decision before they commit to signing a student loan. This is the first clear step to providing transparency in the lending process," said Congressman Emanuel Cleaver, II.

According to a 2016 Consumer Report Survey, 62% of Americans with student loan debt did not attend any financial aid information sessions prior to enrolling in college. A 2014 analysis conducted by the Brookings Institution found that over a quarter of first-year college students with federal student loans didn't know their loans came from the federal government.

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