Amendment SSA1-SB595

SB595-SSA1,6,6 b. An explanation that private student loan lenders can offer variable interest rates that can increase or decrease over time, depending on market conditions.

SB595-SSA1,6,10 c. An explanation that private student loans have a range of interest rates and fees and students should determine the interest rate of, and any fees associated with, the private student loan included in their financial aid award package before accepting the loan.

SB595-SSA1,6,13 d. An explanation that students should contact the lender of the private student loan or their institution's financial aid office if they have any questions about a private student loan.

SB595-SSA1,6,15 e. An explanation that the interest rate on a private loan may depend on the borrower's credit rating.

SB595-SSA1,6,19 2. If the institution of higher education provides a private loan lender list, provide general information about the loans available through the lender and disclose the basis for each lender's inclusion on the list. The institution shall also disclose with the list that the student may choose any lender.

SB595-SSA1,6,25 (c) 1. A lender may not accept a final and complete application for a private student loan from an applicant, or assess any fees upon an applicant, without first receiving certification from the applicant's institution of higher education that the applicant has received counseling from the institution under pars. (a) and (b) and that the counseling was conducted in person, unless the certification specified that the applicant elected to receive the counseling in a manner other than in person.

SB595-SSA1,7,6 2. The certification required by subd. 1. shall be signed by the applicant and the institutional counselor, and shall include the date of the counseling and the name, address, and telephone number of both the counselor and the applicant. An electronic facsimile copy of the counseling certification satisfies the requirement under this subdivision. The lender shall maintain the certification in an accurate, reproducible, and accessible format for the term of the student loan.

SB595-SSA1,7,10 (4) Exit counseling. (a) As close as practicable to the date that a student graduates from, transfers from, withdraws from, or otherwise completes his or her program of study at the institution of higher education, the institution shall provide the student with information relating to all of the following:

SB595-SSA1,7,14 1. Repayment plans that are available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan.

SB595-SSA1,7,16 2. Debt management strategies designed to facilitate the repayment of indebtedness.

SB595-SSA1,7,18 3. The options to prepay each loan, pay each loan on a shorter schedule, or change repayment plans.

SB595-SSA1,7,20 4. The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures, and litigation.

SB595-SSA1,7,21 5. The effects of consolidation on a borrower's underlying loan benefits.

SB595-SSA1,7,22 6. Grace periods, loan forgiveness, cancellation, and deferment opportunities.

SB595-SSA1,7,23 7. The borrower benefit programs of different lenders.

SB595-SSA1,7,24 8. The tax benefits that may be available to borrowers.

SB595-SSA1,7,25 9. How to enroll in income-based repayment.

SB595-SSA1,8,3 (b) With respect to a student who leaves an institution of higher education without the knowledge of the institution, the institution shall attempt to provide the information described in par. (a) to the student in writing.

SB595-SSA1,8,7 (5) Fee. An institution of higher education may assess a reasonable fee to the lender to defray the cost of counseling under this section in an amount not exceeding $50. The higher educational aids board and the department of financial institutions shall jointly promulgate rules to implement and administer this subsection.

SB595-SSA1,4 Section 4. 224.30 (6) of the statutes is created to read:

SB595-SSA1,8,9 224.30 (6) Student lending transparency. (a) In this subsection:

SB595-SSA1,8,10 1. "Higher education expenses" includes all of the following:

SB595-SSA1,8,11 a. Tuition and fees.

SB595-SSA1,8,12 b. Books and supplies

SB595-SSA1,8,13 c. Room and board.

SB595-SSA1,8,15 2. "Private student loan" means a loan issued by a private lending institution for the purpose of paying for or financing higher education expenses.

SB595-SSA1,8,18 3. "Private lending institution" means any private entity that itself or through an affiliate makes available student loans to pay for or finance higher education expenses.

SB595-SSA1,8,20 4. "Student borrower" means any individual who borrows money from a private lending institution to finance higher education expenses.

SB595-SSA1,8,23 (b) The department shall compile data related to private student loans for the purpose of comparing private lending institutions' student loan interest rates and repayment plans, including all of the following:

SB595-SSA1,8,24 1. Policies relating to deferment and forbearance.

SB595-SSA1,8,25 2. Loan default policies and penalties.

SB595-SSA1,9,3 3. Any other information that the department deems relevant for the purpose of creating a list of private lending institutions that provide the lowest rates and best repayment options on student loans.

SB595-SSA1,9,6 (c) 1. Using the data compiled under par. (b), the department shall create and maintain a list of private lending institutions that provide the lowest rates and best repayment options on student loans.

SB595-SSA1,9,12 2. In addition to the list under subd. 1., the department shall compile a list of the 10 best private lending institutions based on rates and policies that are most favorable to the student borrower. The department may also consider the private lending institutions' policies for allowing a student borrower to borrow more than 10 percent over the student borrower's total cost of higher education expenses when determining if a private lending institution should be placed on this list.

SB595-SSA1,9,19 (d) The department shall place the lists created and compiled under par. (c) at an easily accessible location on the department's Internet site. The department shall update its Internet site on a monthly basis to ensure that the student loan information in these lists is current and accurate. Information pertaining to lending institutions that do not make the list compiled under par. (c) 2. shall also be posted on the department's Internet site and those lending institutions that provide the worst rates and strictest repayment options shall be clearly indicated.

SB595-SSA1,9,22 (e) The department shall make any list or other data under this subsection that appears on the department's Internet site available to be linked as provided in ss. 39.28 (7) and 39.54 (3).

SB595-SSA1,9,24 (f) The department may satisfy its duties under this subsection through a designee or 3rd-party contractor.

SB595-SSA1,5 Section 5. Effective dates. This act takes effect on the day after publication, except as follows:

SB595-SSA1,10,5 (1) Financial aid information. The treatment of sections 39.28 (7), 39.54, and 224.30 (6) of the statutes takes effect on the first day of the 7th month beginning after publication.

SB595-SSA1,10,6 (End)