Bill Overview
Title: Simplifying Access to Student Loan Information Act of 2022
Description: Simplifying Access to Student Loan Information Act of This bill expands the National Student Loan Data System (NSLDS) to include information about private education loans. Specifically, the bill requires private educational lenders to submit to the NSLDS information regarding private education loans made to borrowers, including the outstanding balances and interest rates of such loans. Currently, only federal student loan information is available in the NSLDS. The bill requires the Department of Education to ensure that a cosigner of a private education loan for which information is included in the NSLDS has access only to that information in a separate account, ensure that a private educational lender has access to the NSLDS only to submit information regarding the lender's loans, and establish a functionality within the NSLDS that enables a student borrower of federal student loans to input the information necessary to compare repayment plans.
Sponsors: Sen. Shaheen, Jeanne [D-NH]
Target Audience
Population: Individuals with private education loans in the United States
Estimated Size: 3800000
- The bill impacts borrowers of private education loans, as it introduces new reporting requirements for these loans in the NSLDS.
- Private educational lenders will be required to report loan data to the NSLDS, impacting their operations.
- Cosigners on private loans will be affected as they will be granted access to their specific loan information through the NSLDS.
- The features for comparing repayment plans will impact federal student loan borrowers, helping them manage their loan repayment options more effectively.
- Currently, there are millions of student loan borrowers in the U.S.; a significant number have private loans in addition to federal loans.
- Approximately 9% of the total student loan debt in the U.S. is private, equating to about $130 billion, which suggests a large population is involved.
- Globally, while the bill is U.S.-specific, international students or individuals with private U.S. education loans may be impacted as well, though this number is likely smaller than domestically involved populations.
Reasoning
- The population impacted by this policy primarily includes borrowers and cosigners of private educational loans, as well as federal student loan borrowers who will be able to better manage their repayment plans.
- Given the budget constraints, the policy focuses on introducing efficiencies that can be scaled and maintained within the $1.145 billion budget over ten years.
- This simulation considers individuals across different demographical and financial backgrounds to understand how this policy might vary in impact across the targeted population.
Simulated Interviews
Marketing Specialist (New York, NY)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The ability to see all my loans in one place will help me plan better.
- I often forget the details of my private loans; this will make tracking them easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Software Engineer (Austin, TX)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- It sounds beneficial, but I manage most of my finances online already.
- I'm curious how it will integrate with my financial planning tools.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Student (Los Angeles, CA)
Age: 22 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 3/20
Statement of Opinion:
- Having all the loan information in one place would decrease my stress.
- This will help in planning my post-graduation finances better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
High School Teacher (Chicago, IL)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- It's good to have visibility into a loan I've cosigned.
- But worried about the security of information.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Small Business Owner (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- I'm glad I can see the loan details I've cosigned more easily.
- I hope this doesn't complicate or breach my son's privacy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Nurse (Seattle, WA)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Having a comprehensive view will help me choose the best repayment strategies.
- I like the idea but hope it doesn't add more bureaucratic hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Data Analyst (San Francisco, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- Doesn't directly affect me anymore, but would have been useful a few years ago.
- It seems like a smart move for future graduates.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cosigner for nephew's private loan (Atlanta, GA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- Generally, it looks helpful to see the loan status.
- I'm interested in how cosigners will be notified about this new access.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Accountant (Denver, CO)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 3/20
Statement of Opinion:
- This bill might help others like me avoid financial slipping.
- I could've used this before refinancing, knowledge is power.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Graphic Designer (Boston, MA)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- I am skeptical whether this will change much in practice.
- Having loans in one system is promising for managing what I owe.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $150000000 (Low: $120000000, High: $180000000)
Year 2: $140000000 (Low: $110000000, High: $170000000)
Year 3: $130000000 (Low: $100000000, High: $160000000)
Year 5: $120000000 (Low: $90000000, High: $150000000)
Year 10: $80000000 (Low: $60000000, High: $100000000)
Year 100: $20000000 (Low: $15000000, High: $25000000)
Key Considerations
- Cost estimates focus heavily on IT infrastructure and platform upgrades.
- Ensuring seamless integration of private loan data with existing federal data will be crucial.
- Ongoing maintenance and updates to the NSLDS are necessary for the policy's success.