[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3298 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3298
To revise counseling requirements for certain borrowers of student
loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2025
Mrs. Miller-Meeks introduced the following bill; which was referred to
the Committee on Education and Workforce
_______________________________________________________________________
A BILL
To revise counseling requirements for certain borrowers of student
loans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Know Before You Owe Federal Student
Loan Act of 2025''.
SEC. 2. PRE-LOAN COUNSELING AND CERTIFICATION OF LOAN AMOUNT.
Section 485(l) of the Higher Education Act of 1965 (20 U.S.C.
1092(l)) is amended--
(1) in the subsection heading, by striking ``Entrance
Counseling'' and inserting ``Pre-Loan Counseling'';
(2) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``a disbursement to a first-time borrower of a loan''
and inserting ``the first disbursement of each new loan
(or the first disbursement in each award year if more
than one new loan is obtained in the same award
year)''; and
(B) in clause (ii)(I), by striking ``an entrance
counseling'' and inserting ``a counseling'';
(3) in paragraph (2)--
(A) by striking subparagraph (G) and inserting the
following:
``(G) An estimate of the borrower's monthly payment
amount compared to the borrower's estimated monthly
income after taxes, after living expenses (using
Consumer Expenditure Survey data from the Bureau of
Labor Statistics), after estimated health insurance
costs, and after any other relevant expenses, based
on--
``(i) the best available data on starting
wages for the borrower's program of study, if
available; and
``(ii) the estimated total student loan
debt of the borrower, including--
``(I) Federal debt;
``(II) to the best of the
institution's knowledge, private loan
debt already incurred; and
``(III) the estimated future debt
required to complete the program of
study.''; and
(B) by adding at the end the following:
``(L) A statement that the borrower should borrow
the minimum amount necessary to cover expenses and that
the borrower does not have to accept the full amount of
loans for which the borrower is eligible.
``(M) A warning that the higher the borrower's
debt-to-income ratio is, the more difficulty the
borrower is likely to experience in repaying the loan.
``(N) Options for reducing borrowing through
scholarships, reduced expenses, work-study, or other
work opportunities.
``(O) An explanation of the importance of
graduating on time to avoid additional borrowing, what
course load is necessary to graduate on time, and
information on how adding an additional year of study
impacts total indebtedness.''; and
(4) by adding at the end the following:
``(3) Confirmation by student of loan amount provided.--
``(A) In general.--In addition to the other
requirements of this subsection and in accordance with
subparagraph (B), each eligible institution shall
ensure that the student manually enter, either in
writing or through electronic means, the exact dollar
amount of Federal Direct Loan funding under part D that
such student desires to borrow.
``(B) Timing.--The eligible institution shall
ensure that the student carries out the activity
described in subparagraph (A)--
``(i) in the course of the process used by
the institution for students to accept a
student loan award;
``(ii) prior to the institution certifying
a Federal Direct Loan under part D for
disbursement to a student (other than a Federal
Direct Consolidation Loan or a Federal Direct
PLUS loan made on behalf of a student); and
``(iii) after ensuring that the student has
completed all of the pre-loan counseling
requirements under this subsection.''.
SEC. 3. REQUIRED PERIODIC DISCLOSURES DURING PERIODS WHEN LOAN PAYMENTS
ARE NOT REQUIRED.
Section 433 of the Higher Education Act of 1965 (20 U.S.C. 1083) is
amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) Required Periodic Disclosures During Periods When Loan
Payments Are Not Required.--During any period of time when a borrower
of one or more loans, made, insured, or guaranteed under this part or
part D is not required to make a payment to an eligible lender on the
borrower's loan from that eligible lender, such eligible lender shall
provide such borrower with a quarterly statement that includes, in
simple and understandable terms--
``(1) the original principal amount of each of the
borrower's loans, and the original principal amount of those
loans in the aggregate;
``(2) the borrower's current balance, as of the time of the
statement, as applicable;
``(3) the interest rate on each loan;
``(4) the total amount the borrower has paid in interest on
each loan;
``(5) the aggregate amount the borrower has paid for each
loan, including the amount the borrower has paid in interest,
the amount the borrower has paid in fees, and the amount the
borrower has paid against the balance;
``(6) the lender's or loan servicer's address, toll-free
phone number, and webpage for payment and billing error
purposes, including information about how a borrower can make
voluntary payments when a loan is not in repayment status;
``(7) an explanation--
``(A) that the borrower has the option to pay the
interest that accrues on each loan while the borrower
is a student at an institution of higher education or
during a period of deferment or forbearance, if
applicable; and
``(B) if the borrower does not pay such interest
while attending an institution or during a period of
deferment or forbearance, any accumulated interest on
the loan will be capitalized when the loan goes into
repayment, resulting in more interest being paid over
the life of the loan;
``(8) the amount of interest that has accumulated since the
last statement based on the typical installment time period and
the aggregate interest accrued to date; and
``(9) an explanation that making even small payments of any
unspecified amount while the borrower is a student at an
institution of higher education, or during a period of
deferment or forbearance, if applicable, can help to offset
interest accrual over the life of the loan.''.
SEC. 4. CONFORMING AMENDMENTS.
(a) Program Participation Agreements.--Section 487(e)(2)(B)(ii)(IV)
of the Higher Education Act of 1965 (20 U.S.C. 1094(e)(2)(B)(ii)(IV))
is amended--
(1) by striking ``Entrance and exit counseling'' and
inserting ``Pre-loan and exit counseling''; and
(2) by striking ``entrance and exit counseling'' and
inserting ``pre-loan and exit counseling''.
(b) Regulatory Relief and Improvement.--Section 487A of the Higher
Education Act of 1965 (20 U.S.C. 1094a) is amended by striking
``entrance and exit interviews'' and inserting ``pre-loan and exit
interviews'' each place the term appears.
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