Know Before You Owe Private Student Loan Act of 2012
Latest action · Oct 1, 2012 Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedAug 2, 2012
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Know Before You Owe Private Student Loan Act of 2012 - 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.
Cosponsors 7
Members who signed on, in the order they did. Signatures ran from Aug 2, 2012 to Nov 16, 2012; 2 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-PA | Allyson Y. Schwartz | Original | Aug 2, 2012 |
| D-NY | Timothy H. Bishop | Original | Aug 2, 2012 |
| D-GU | Madeleine Z. Bordallo | Sep 20, 2012 | |
| D-IL | Janice D. Schakowsky | Sep 21, 2012 | |
| D-MD | Elijah E. Cummings | Nov 13, 2012 | |
| D-CT | Joe Courtney | Nov 15, 2012 | |
| D-OR | Suzanne Bonamici | Nov 16, 2012 |
Committees 2
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Education and Workforce Committee | Referred Aug 2, 2012 |
| Higher Education and Workforce Development Subcommittee | Referred Sep 26, 2012 | |
| House | Financial Services Committee | Referred Aug 2, 2012 |
| Consumer Protection and Financial Institutions Subcommittee | Referred Oct 1, 2012 |
Actions 4
Everything that happened, newest first.
- Oct 1, 2012Referred to the Subcommittee on Financial Institutions and Consumer Credit.
- Sep 26, 2012Referred to the Subcommittee on Higher Education and Workforce Training.
- Aug 2, 2012Introduced in House
- Aug 2, 2012Referred to the Committee on Education and the Workforce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Constitutional authority
The sponsor’s statement, as printed in the page H5708.
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| S 2280 | Know Before You Owe Private Student Loan Act of 2012 | Identical bill | Mar 29, 2012 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- 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.
- Short Titles as Introduced
- Know Before You Owe Private Student Loan Act of 2012
Subjects
Assigned by the Library of Congress. Policy area: Education.
- Administrative law and regulatory procedures
- Banking and financial institutions regulation
- Consumer affairs
- Consumer Financial Protection Bureau
- Credit and credit markets
- Education
- Government information and archives
- Government lending and loan guarantees
- Higher education
- Student aid and college costs
Text 1
Each version as it was printed, newest first.
- Aug 2, 2012Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
