SB595-SSA1,6,65 b. An explanation that private student loan lenders can offer variable interest
6rates that can increase or decrease over time, depending on market conditions.
SB595-SSA1,6,107 c. An explanation that private student loans have a range of interest rates and
8fees and students should determine the interest rate of, and any fees associated with,
9the private student loan included in their financial aid award package before
10accepting the loan.
SB595-SSA1,6,1311 d. An explanation that students should contact the lender of the private
12student loan or their institution's financial aid office if they have any questions about
13a private student loan.
SB595-SSA1,6,1514 e. An explanation that the interest rate on a private loan may depend on the
15borrower's credit rating.
SB595-SSA1,6,1916 2. If the institution of higher education provides a private loan lender list,
17provide general information about the loans available through the lender and
18disclose the basis for each lender's inclusion on the list. The institution shall also
19disclose with the list that the student may choose any lender.
SB595-SSA1,6,2520 (c) 1. A lender may not accept a final and complete application for a private
21student loan from an applicant, or assess any fees upon an applicant, without first
22receiving certification from the applicant's institution of higher education that the
23applicant has received counseling from the institution under pars. (a) and (b) and
24that the counseling was conducted in person, unless the certification specified that
25the applicant elected to receive the counseling in a manner other than in person.
SB595-SSA1,7,6
12. The certification required by subd. 1. shall be signed by the applicant and
2the institutional counselor, and shall include the date of the counseling and the
3name, address, and telephone number of both the counselor and the applicant. An
4electronic facsimile copy of the counseling certification satisfies the requirement
5under this subdivision. The lender shall maintain the certification in an accurate,
6reproducible, and accessible format for the term of the student loan.
SB595-SSA1,7,10 7(4) Exit counseling. (a) As close as practicable to the date that a student
8graduates from, transfers from, withdraws from, or otherwise completes his or her
9program of study at the institution of higher education, the institution shall provide
10the student with information relating to all of the following:
SB595-SSA1,7,1411 1. Repayment plans that are available, including a description of the different
12features of each plan and sample information showing the average anticipated
13monthly payments, and the difference in interest paid and total payments, under
14each plan.
SB595-SSA1,7,1615 2. Debt management strategies designed to facilitate the repayment of
16indebtedness.
SB595-SSA1,7,1817 3. The options to prepay each loan, pay each loan on a shorter schedule, or
18change repayment plans.
SB595-SSA1,7,2019 4. The likely consequences of default on the loan, including adverse credit
20reports, delinquent debt collection procedures, and litigation.
SB595-SSA1,7,2121 5. The effects of consolidation on a borrower's underlying loan benefits.
SB595-SSA1,7,2222 6. Grace periods, loan forgiveness, cancellation, and deferment opportunities.
SB595-SSA1,7,2323 7. The borrower benefit programs of different lenders.
SB595-SSA1,7,2424 8. The tax benefits that may be available to borrowers.
SB595-SSA1,7,2525 9. How to enroll in income-based repayment.
SB595-SSA1,8,3
1(b) With respect to a student who leaves an institution of higher education
2without the knowledge of the institution, the institution shall attempt to provide the
3information described in par. (a) to the student in writing.
SB595-SSA1,8,7 4(5) Fee. An institution of higher education may assess a reasonable fee to the
5lender to defray the cost of counseling under this section in an amount not exceeding
6$50. The higher educational aids board and the department of financial institutions
7shall jointly promulgate rules to implement and administer this subsection.
SB595-SSA1,4 8Section 4. 224.30 (6) of the statutes is created to read:
SB595-SSA1,8,99 224.30 (6) Student lending transparency. (a) In this subsection:
SB595-SSA1,8,1010 1. "Higher education expenses" includes all of the following:
SB595-SSA1,8,1111 a. Tuition and fees.
SB595-SSA1,8,1212 b. Books and supplies
SB595-SSA1,8,1313 c. Room and board.
SB595-SSA1,8,1514 2. "Private student loan" means a loan issued by a private lending institution
15for the purpose of paying for or financing higher education expenses.
SB595-SSA1,8,1816 3. "Private lending institution" means any private entity that itself or through
17an affiliate makes available student loans to pay for or finance higher education
18expenses.
SB595-SSA1,8,2019 4. "Student borrower" means any individual who borrows money from a private
20lending institution to finance higher education expenses.
SB595-SSA1,8,2321 (b) The department shall compile data related to private student loans for the
22purpose of comparing private lending institutions' student loan interest rates and
23repayment plans, including all of the following:
SB595-SSA1,8,2424 1. Policies relating to deferment and forbearance.
SB595-SSA1,8,2525 2. Loan default policies and penalties.
SB595-SSA1,9,3
13. Any other information that the department deems relevant for the purpose
2of creating a list of private lending institutions that provide the lowest rates and best
3repayment options on student loans.
SB595-SSA1,9,64 (c) 1. Using the data compiled under par. (b), the department shall create and
5maintain a list of private lending institutions that provide the lowest rates and best
6repayment options on student loans.
SB595-SSA1,9,127 2. In addition to the list under subd. 1., the department shall compile a list of
8the 10 best private lending institutions based on rates and policies that are most
9favorable to the student borrower. The department may also consider the private
10lending institutions' policies for allowing a student borrower to borrow more than 10
11percent over the student borrower's total cost of higher education expenses when
12determining if a private lending institution should be placed on this list.
SB595-SSA1,9,1913 (d) The department shall place the lists created and compiled under par. (c) at
14an easily accessible location on the department's Internet site. The department shall
15update its Internet site on a monthly basis to ensure that the student loan
16information in these lists is current and accurate. Information pertaining to lending
17institutions that do not make the list compiled under par. (c) 2. shall also be posted
18on the department's Internet site and those lending institutions that provide the
19worst rates and strictest repayment options shall be clearly indicated.
SB595-SSA1,9,2220 (e) The department shall make any list or other data under this subsection that
21appears on the department's Internet site available to be linked as provided in ss.
2239.28 (7) and 39.54 (3).
SB595-SSA1,9,2423 (f) The department may satisfy its duties under this subsection through a
24designee or 3rd-party contractor.
SB595-SSA1,5
1Section 5. Effective dates. This act takes effect on the day after publication,
2except as follows:
SB595-SSA1,10,5 3(1) Financial aid information. The treatment of sections 39.28 (7), 39.54, and
4224.30 (6) of the statutes takes effect on the first day of the 7th month beginning after
5publication.
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