The STUDENT Act requires federal student loan servicers to disclose the total amount of interest borrowers will pay over the entire life of their loans. The bill amends existing disclosure rules under the Higher Education Act to include this lifetime interest calculation in the standard disclosure documents that borrowers receive, calculated based on the standard repayment plan applicable to their total outstanding loan balance. This affects all borrowers of federal student loans covered under the relevant loan programs. The legislation has no specified funding amount or implementation timeline in the text provided, but it would take effect once passed and signed into law. The bill aims to give students clearer, upfront information about the true cost of borrowing when making decisions about federal student loans.
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