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US Lawmakers Approves Bill About Student Loans

On Thursday both houses in the US Congress finally approved what they called a major legislation that urged student loan firms to disclose properly the terms and conditions of student loans. The legislation seeks out to help students to properly monitor their loans with the new guidelines. After the successful voting Thursday the legislators would now proceed to submitting the approved legislation to the White House for Pres. George W. Bush’s final signature. Legislators Thursday voted 380-49 in favor of the urging of lenders to properly disclose terms and conditions of the student loans. Just like the teacher appreciation programs, students are expected to give due recognition to congress for the success of the legislation.

Tagged as Higher Education Act, lawmakers say this is now considered a major legislation for the US schools world wide with the senators unable to execute good legislations before Congress and Senate ends in August. Lending firms today may. Chairman, Edward Kennedy said this piece of legislation has been waited by students as they want transparency in their student loan program. In fact, during the presentation of both education committees, chair Edward Kennedy was given the award for massively campaigning for this legislation. The only sad thing to note, however, is that Kennedy was not around during the debate because he was suffering from illness.

Below are salient points of the bill:

• Student loan lending firms would tell their students they are very eligible for supporting the student’s loan program.

• The legislations mandated financial institutions to give proper disclosure of their loan terms and conditions as well as other important information to students during the course of their studies.

• The measure also urge private lenders to ask students for student’s enrollment, available and remaining financial aid as well as the details of the outstanding loan the students had.

• They are also required to give information to the borrowers about the borrowing process which include terms and conditions, charges and fees and the interest rate of the loans.

• Lending firms are told not to charge their students who want to complete payments of their loans early based on quoted rate terms at least up to 30 days.

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