Require the Disclosure of APR for Federal Student Loans
EFC is strongly in favor of requiring the disclosure of annual percentage rates (APR) for federal student loans. The federal government is currently not subject to the same disclosure requirements as private lenders, and, as a result, consumers are often unaware of the total expense associated with a federal student loan, including origination fees and the potential effects of deferment, forbearance, and interest capitalization on the total cost of their loan.
The federal government, as the originator of more than 90 percent of all education loans in the nation, should be required to provide a more complete picture of the costs of these loans so students and families can make fully informed higher education financing decisions.
EFC endorses the bipartisan, bicameral Transparency In Student Lending Act.