Advocacy Briefs: Kennedy Introduces Student Loan Oversight Bill.
On February 1, Senator Edward Kennedy (D-Massachusetts) and Senator Richard Durbin (D-Illinois), introduced the “Student Loan Sunshine Act” (S. 486) intended to “protect students and parents from exploitation by private lenders and lenders who offer gifts to colleges as a way to secure loan business.” The Sunshine Act requires full disclosure and explanation of special arrangements that lenders and colleges have to offer loan products at the college; bans lenders from offering gifts valued over $10 to college employees; requires preferred lender lists to have at least three non-affiliated lenders; and encourages borrowers to participate in the government’s loan programs before taking out private loans.
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