The Senate Banking Committee passed legislation Wednesday that would prohibit student lenders from offering gifts to schools as well as revenue sharing and loan cobranding arrangements between lenders and schools. The bill, sponsored by Committee Chairman Chris Dodd, also requires the Government Accountability Office (GAO) to study the extent that a school's accreditation and graduation rate affect interest rates for minority students. It extends provisions of the Truth in Lending Act to private student loans, prohibits prepayment penalties and requires banks to provide better disclosure on interest rates, fees and other terms. Lawmakers are seeking to regulate the student lending...
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