Student Loan Disclosure Transparency Act of 2023

This bill requires student loan lenders to provide clear, plain-language disclosures to borrowers before loan disbursement and monthly throughout the loan term. Before disbursing a loan, lenders must give a written statement showing the loan's principal, interest rate, estimated repayment timeline, total projected cost (including fees), and how existing loans affect the borrower's total debt. Monthly statements must detail current balances, interest rates, payments made, interest accrued, and projections of future payments, including explanations of how interest capitalization increases long-term costs. These disclosures directly affect all borrowers of federal student loans and the lenders/servicers managing those loans, aiming to improve transparency about loan terms and costs.