Chairman Miller Says Students and Parents Deserve a ‘College Consumer’s Bill of Rights’
Higher Ed Legislation Set for Vote Tomorrow Includes Key Consumer Protections for Student and Parent Borrowers

Wednesday, February 6, 2008

WASHINGTON, DC -- Students and parents who take out loans to pay for college deserve a College Consumer’s Bill of Rights, said U.S. Rep. George Miller (D-CA) today.

Tomorrow, the U.S. House of Representatives is voting on legislation (H.R. 4137) to make college more affordable and accessible for all qualified students. The legislation includes a number of key consumer protections for student and parent borrowers. Together these protections form a Bill of Rights for college consumers, said Miller, the chairman of the House education committee and sponsor of the legislation.

“I urge all of my colleagues to support this critical legislation, which will protect the rights of students and parents who borrow money to pay for a college education,” said Miller. “For too long, the rules of the education loan programs have been tilted in favor of the banks and lenders. It is time that the rules favored students and families who are already struggling to pay for college amidst rising tuition prices. The borrower protections in this legislation really add up to a College Consumer’s Bill of Rights, and this Bill of Rights will make the college loan programs work in the best interests of students and families again.”

►Below are the 10 key rights that students will gain if H.R. 4137 becomes law. You can also view the College Consumer’s Bill of Rights by clicking here.

The College Consumer’s Bill of Rights

1. You Have the Right to pay off your college loans early without incurring an early-repayment charge.

2. You Have the Right to change your mind and cancel a private loan within three days of signing an agreement with a lender.

3. You Have the Right to take 30 days after you are approved for a private loan to think about whether that loan is right for you – without risking changes to the loan terms.

4. You Have the Right to take out a loan from the lender of your choice, regardless of whether that lender is on your college’s list of “preferred lenders.”

5. You Have the Right to know if you are eligible for a federal student loan before you take out a private student loan that could carry higher interest rates and fees and feature more stringent repayment requirements.

6. You Have the Right to clear and complete information from lending companies trying to earn your business. This information includes the interest rates you could pay, the estimated total cost of your loan, and your repayment options.

7. You Have the Right to clear and complete information from lending companies that have approved you for a loan or made a loan to you. This information includes your interest rate, fees and finance charges, total repayment amount, and maximum monthly payment.

8. You Have the Right to know that your student financial aid office does not accept gifts from or share revenues with lending companies.

9. You Have the Right not to be subject to deceptive marketing campaigns by lending companies.

10. You Have the Right to know that your student financial aid office and lenders offering both federal and private students loans are acting in your best interests.

►For more information on the College Opportunity and Affordability Act, click here.

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FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853