Uncool College Parents applaud Senator Richard Durkin of Illinois and Senator Tom Harkin of Iowa for proposing a bill that requires lenders and colleges to educate students about the real cost of college. The name of the bill is The Know Before You Owe Act of 2012.
Colleges must do a better job at providing students with borrowing options. Students need to be informed about federal loans and private loans. Federal loans are capped at 6.8% whereas private loans are variable and could rise over 15%. The Durbin-Harkin bill will explain how loans work. Put politics aside because this bill certainly deserves to become a law.
The original article was published in the NYTimes Sunday, April 8, 2012. Entitled “Disclosure to Student Borrowers” – A sensible bill to require lenders and colleges to educate students abou the real costs.