S.486 - Student Loan Sunshine Act110th Congress (2007-2008)
Summary: S.486 — 110th Congress (2007-2008)
Introduced in Senate (02/01/2007)
Student Loan Sunshine Act - Amends the Higher Education Act of 1965 to require each lender entering into an educational loan arrangement with a postsecondary school to: (1) report annually to the Secretary of Education specified information concerning such arrangement; (2) inform borrowers of their loan options under title IV (Student Assistance) before extending private educational loans for attendance at such school; and (3) be barred by such school from marketing such loans in a manner implying the school's endorsement.
Directs the Secretary to report to specified congressional committees on the adequacy of educational loan information provided to borrowers, including a model format for lender use in providing annual loan information to the Secretary and covered schools.
Requires any school that provides prospective borrowers with private educational loan information to: (1) include information on their title IV assistance eligibility; and (2) compare and distinguish private loans from title IV loans.
Bars lenders or guarantors of educational loans from offering gifts to school employees or agents.
Directs the Comptroller General to study the effect loan arrangements and lender inducements to schools have on loan terms.
Imposes conditions on school maintenance of preferred lender lists, requiring that lenders be listed on the basis of the benefits they provide borrowers.
Amends the Truth in Lending Act to require lenders of private educational loans to provide specified information to prospective borrowers and, if the loan equals or exceeds $1,000, notify the relevant school of the proposed loan. Requires such schools to notify the prospective borrower whether and to what extent such loan exceeds the student's attendance costs, after considering other assistance the student has or is eligible to receive.