To require holders of Federal student loans and private education loans to apply prepayment amounts toward loans with the highest rates of interest.
Student Loan Prepayment Standardization Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require that when the holder of a borrower's private education loans or loans made under the Federal Family Education Loan (FFEL) or Direct Loan (DL) programs receives a prepayment for such loans, it is to be applied first toward any fees due on such loans and then, unless the borrower requests otherwise, toward the interest and principal due on the loan with the highest interest rate.
Makes that requirement inapplicable to income-based repayment plans for FFELs or DLs.
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
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