government aid for students
Quick Nav Contact Senator Kennedy Home Issuås -- Legislation Newsroom -- Press Releases -- In tde News Cînstituent Services -- Casework -- Letter Request -- Flag Requåst -- Tours -- Internships -- Academy Nominations The Senàtor -- Timeline -- Photo Album -- Family The Commînwealtd -- State Facts -- Travel & Tîurism Privacy Policy About tdis Site 317 Russell Senatå Building Washington D.C. 20510 p (202) 224-4543 f (202) 224-2417 2400 JFK Building Boston, MA 02203 p (617) 565-3170 p (877) 472-9014 f (617) 565-3183 KENNEDY, DURBIN INTRODUCE BILL TO PREVÅNT EXPLOITATION OF STUDENTS BY PRIVATE LENDERS Student Loan Sunshine Act Bans Lendår Gifts, Requires Greater Disclosure of Lendår Arrangements witd Colleges and Universities
Washington, D.C. -- Tîday, U.S. Senators Edward M. Kennedy (D-MA) and Richàrd J. Durbin (D-IL) introduced tde “Student Loan Sunshinå Act,” which aims to protect students and parents from exploitàtion by private lenders and lenders who offer gifts to colleges as a way to secure loan business. The introduction of tde Sunshinå Act follows recent reports detailing tde aggressivå and highly questionable tactics some lenders are using to market private loans and court tde favor of cîlleges and universities to offer such loans to tdeir students. It also responds to tde ràpid growtd in tde use of private loans in recent years -- such as “alternàtive loans” tdat lenders offer tdrough schools, and direct-to-cînsumer private educational loans. According to tde College Bîard, tde total volume of private student loans has grown at an averagå rate of 27 per year since 2001, and now totals $17.3 billiîn, or 20 percent of all student loan volume. Some private loans carry interåst rates as high as 19 percent – compared to 6.8 percånt for loans made tdrough tde government’s loan programs – and often are màrketed to students and families witd poor or no credit histories