United States · Bill · S
S. 887 (116th)
Know Before You Owe Federal Student Loan Act of 2019
Introduced
27 March 2019
Last action
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Status
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Sponsors
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Subjects
Discovery layer
Source updated
21 April 2025
Summary
Know Before You Owe Federal Student Loan Act of 2019 This bill expands lender disclosure requirements and modifies loan counseling 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, including specified information on the loan and interest amounts. The statement must also explain the option to pay accrued interest while a student is in deferment or forbearance. The bill requires an institution of higher education (IHE) that participates in federal student aid programs to provide pre-loan counseling to a student borrower of a federal student loan upon or prior to the first disbursement of each new loan. Currently, an IHE must provide one-time entrance counseling to a student who is a first-time federal student loan borrower. The bill also revises and expands required elements of pre-loan counseling to include an estimate of the borrower's monthly payment amount compared to the borrower's estimated monthly income after taxes and other expenses, a statement to borrow the minimum necessary amount, a warning that a 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 the student manually enters the exact dollar amount of the loan.
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Documents
3 official files
Introduced in Senate (text)
Introduced in Senate (text)
Introduced in Senate · EN · 27 March 2019
Introduced in Senate (PDF)
Introduced in Senate · EN · 27 March 2019
Introduced in Senate
summary · EN · 27 March 2019
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Sources
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- Official source: https://www.congress.gov/bill/116th-congress/senate-bill/887
- Open data entity: https://api.congress.gov/v3/bill/116/s/887