Know Before You Owe Federal Student Loan Act of 2017

Summary

Know Before You Owe Federal Student Loan Act of 2017 This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to expand lender disclosure requirements. A lender must provide a quarterly statement to a Federal Family Education Loan or Direct Loan borrower during a period when loan payments are not required. Such statement must include the current loan balance, original principal loan amount, interest rate, total interest paid, aggregate payments, the lender's or servicer's contact information, accumulated interest amount, and information about making payments while a student to offset interest accrual. It must also explain the option to pay accrued interest before it capitalizes and suggest a payment amount based on interest charged. Additionally, the legislation modifies loan counseling requirements for an institution of higher education (IHE) that participates in federal student aid programs. Currently, an IHE must provide one-time entrance counseling to a student who is a first-time federal student loan borrower. This bill requires an IHE to provide pre-loan counseling to a student borrower of a federal student loan at or prior to the first disbursement of each new loan. It revises and expands required elements of pre-loan counseling to include a borrower's estimated debt-to-income ratio at graduation, a statement to borrow the minimum necessary amount, a warning that high debt-to-income ratio makes repayment more difficult, options to reduce borrowing, and an explanation of the importance of on-time graduation. Prior to certifying a Federal Direct Loan disbursement to a student, an IHE must ensure that such student manually enters the exact dollar amount of the loan.

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Timeline

1. 25 July 2017

   Introduced

   Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

   Source: IntroReferral

2. 25 July 2017

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · 25 July 2017 · Download file

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 25 July 2017

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 25 July 2017

  ViewDownloadOpen at official source

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• Introduced in Senate

  summary · EN · 25 July 2017

  Open at official source

  Leesvertaling

  Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.

  Vertaal naarNL · DutchDE · GermanFR · FrenchES · SpanishIT · ItalianPL · PolishPT · PortugueseSV · SwedishDA · DanishFI · FinnishEL · GreekCS · CzechHU · HungarianRO · RomanianBG · BulgarianHR · CroatianSK · SlovakSL · SlovenianLT · LithuanianLV · LatvianET · EstonianGA · IrishMT · Maltese

  Vertaal document

  Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.

Sponsors

• Sen. Grassley, Chuck [R-IA] · R · Sponsor
• Sen. Ernst, Joni [R-IA] · R · Sponsor
• Sen. Franken, Al [D-MN] · D · Sponsor
• Sen. Smith, Tina [D-MN] · D · Cosponsor
• · sshr00 · Standing

Related records

• related to → Know Before You Owe Federal Student Loan Act of 2019