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114-hr-3947114th Congress

Student Loan Payment Optimization Act

Sponsored By: Representative Deutch, Theodore E. [D-FL-22]

Unknown

Summary

Student Loan Payment Optimization Act This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 and the Truth in Lending Act to establish rules that lenders must follow regarding the overpayment and underpayment of student loan payments for borrowers with one or more loans that are grouped together. These rules are applicable to the Federal Family Education Loan and the William D. Ford Federal Direct Loan programs, except for income-based repayment plans, and federal Perkins Loans. The bill requires lenders to apply payments that are more than the monthly payment amount towards any outstanding fees owed and then towards the principal due on the loan that bears the highest interest rate. In addition, lenders must apply payments that are less than the monthly payment amount towards any outstanding fees owed and then towards the loan with the smallest balance of principal and interest combined unless the borrower requests otherwise.

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Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & CoSponsors

Sponsor

Deutch, Theodore E. [D-FL-22]

FL • D

Cosponsors

  • Rep. Wilson, Frederica S. [D-FL-24]

    FL • D

    Sponsored 12/15/2015

  • Rep. Frankel, Lois [D-FL-22]

    FL • D

    Sponsored 12/15/2015

  • Rep. Swalwell, Eric [D-CA-14]

    CA • D

    Sponsored 2/10/2016

Roll Call Votes

No roll call votes available for this bill.

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