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HR 4236 113th Congress House

Student Loan Fair Prepayment Act

Official title: To amend the Higher Education Act of 1965 and the Truth in Lending Act to clarify the application of prepayment amounts on student loans.

Introduced: May 21, 2014 See on congress.gov
Education Government lending and loan guaranteesHigher educationInterest, dividends, interest ratesStudent aid and college costsUser charges and fees
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This bill died when the 113th Congress ended
It never became law before the 113th Congress (2013–2014) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 13, 2014
Introduced in House
Mar 13, 2014
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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 Latest action March 13, 2014

Referred to the Committee on Education and the Workforce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

 Plain-English summary Congressional Research Service

Student Loan Fair Prepayment Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require that when the holder of a borrower's loans under the Federal Family Education Loan (FFEL) or William D. Ford Federal 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 principal due on the loan that bears the highest interest rate.

Makes that requirement inapplicable to income-based or income contingent repayment plans for FFELs or DLs.

Requires an institution of higher education holding a borrower's loans under the Federal Perkins Loan program to first apply any excess payments by the borrower toward any fees due on such loans and then, unless the borrower requests otherwise, toward the principal due on the loan that bears the highest interest rate.

Amends the Truth in Lending Act to require a private education loan holder that holds more than one private education loan for a borrower to apply any prepayments on those loans first toward any fees due on such loans and then, unless the borrower requests otherwise, toward the principal due on the loan that bears the highest interest rate.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 2
 Cosponsors 4
All 4 Democratic 1
Deutch, Theodore
· Jul 11, 2014
Perlmutter, Ed
· Jun 19, 2014
 D
Peters, Scott H.
California · May 21, 2014
JONES, WALTER
· May 7, 2014
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 4236: Student Loan Fair Prepayment Act. 113th Congress. Open America. https://openamerica.io/bill/113-HR-4236/
MLA
"H.R. 4236: Student Loan Fair Prepayment Act." 113th Congress, 2026, Open America, https://openamerica.io/bill/113-HR-4236/.
Bluebook (legal)
H.R. 4236, 113th Cong. (2026), https://openamerica.io/bill/113-HR-4236/.
Markdown link
[H.R. 4236: Student Loan Fair Prepayment Act](https://openamerica.io/bill/113-HR-4236/)
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