Student loan servicers must now show you the total interest you'll pay
S. 2764 — STUDENT Act · Filed by Joni Ernst (R-IA) · 7 cosponsors · Introduced Sep 10, 2025 · Referred to committee
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What it does
This bill requires federal student loan servicers to disclose to borrowers the total amount of interest they will pay over the life of their loan, calculated using the standard repayment plan. Currently, borrowers receive loan terms but may not see a clear upfront figure for total interest cost, making it harder to understand the true cost of borrowing.
Why we flagged it
The bill's sole operative mechanism is a disclosure requirement—it mandates that servicers provide borrowers with calculated information (total lifetime interest) that is already implicit in loan terms but not currently presented in a single, clear figure.
What the text implies
- Disclosure may prompt borrowers to explore alternative repayment plans (income-driven, accelerated payoff) not reflected in the standard-plan calculation, potentially reducing servicer revenue from extended-term loans.
- Standardized interest disclosure could facilitate comparison shopping and refinancing decisions, increasing competitive pressure on federal loan servicers.
The full analysis lists 3 implications of this text.
Who it affects
Borrowers gain material transparency about the true cost of federal student loans, enabling better-informed decisions about repayment strategies and loan management. The disclosure imposes no new cost on borrowers—only a requirement that servicers provide information already calculable from loan terms.