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HR 3947 114th Congress House

Student Loan Payment Optimization Act

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

Introduced: December 15, 2015 See on congress.gov
Education Government lending and loan guaranteesHigher educationInterest, dividends, interest ratesStudent aid and college costs
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This bill died when the 114th Congress ended
It never became law before the 114th Congress (2015–2016) 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 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 23, 2016
Referred to the Subcommittee on Higher Education and Workforce Training.
Nov 5, 2015
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.
Nov 5, 2015
Introduced in House
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 Latest action March 23, 2016

Referred to the Subcommittee on Higher Education and Workforce Training.

 Plain-English summary Congressional Research Service

Student Loan Payment Optimization Act

This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 and the Truth in Lending Act to establish rules that lenders must follow regarding the overpayment and underpayment of student loan payments for borrowers with one or more loans that are grouped together. These rules are applicable to the Federal Family Education Loan and the William D. Ford Federal Direct Loan programs, except for income-based repayment plans, and federal Perkins Loans.

The bill requires lenders to apply payments that are more than the monthly payment amount towards any outstanding fees owed and then towards the principal due on the loan that bears the highest interest rate. In addition, lenders must apply payments that are less than the monthly payment amount towards any outstanding fees owed and then towards the loan with the smallest balance of principal and interest combined unless the borrower requests otherwise.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 3
 Cosponsors 2
All 2 Democratic 2
D
Frankel, Lois
Florida · Dec 15, 2015
 D
Wilson, Frederica S.
Florida · Dec 15, 2015
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 3947: Student Loan Payment Optimization Act. 114th Congress. Open America. https://openamerica.io/bill/114-HR-3947/
MLA
"H.R. 3947: Student Loan Payment Optimization Act." 114th Congress, 2026, Open America, https://openamerica.io/bill/114-HR-3947/.
Bluebook (legal)
H.R. 3947, 114th Cong. (2026), https://openamerica.io/bill/114-HR-3947/.
Markdown link
[H.R. 3947: Student Loan Payment Optimization Act](https://openamerica.io/bill/114-HR-3947/)
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