Know Before You Owe Private Student Loan Act of 2012
Latest action · Mar 29, 2012 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S2255-2256)
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.
- IntroducedMar 29, 2012
- Passed SenateNot reached
- Passed HouseNot 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 Mar 29, 2012 to Jun 4, 2012, with 1 there on the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-IA | Tom Harkin | Original | Mar 29, 2012 |
| D-CT | Richard Blumenthal | Apr 16, 2012 | |
| D-OH | Sherrod Brown | Apr 16, 2012 | |
| D-MN | Al Franken | Apr 24, 2012 | |
| D-WV | John D. Rockefeller IV | Apr 25, 2012 | |
| I-VT | Bernard Sanders | May 8, 2012 | |
| D-OR | Ron Wyden | Jun 4, 2012 |
Actions 3
Everything that happened, newest first.
- Mar 29, 2012Introduced in Senate
- Mar 29, 2012Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S2255-2256)
- Mar 29, 2012Sponsor introductory remarks on measure. (CR S2254-2255)
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 6273 | Know Before You Owe Private Student Loan Act of 2012 | Identical bill | Oct 1, 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.
- Mar 29, 2012Introduced in Senate
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.