[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1970 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1970
To modify requirements relating to financial aid disclosures.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2023
Mr. Daines (for himself, Mr. Cassidy, Mrs. Blackburn, and Mrs. Capito)
introduced the following bill; which was read twice and referred to the
Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To modify requirements relating to financial aid disclosures.
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 ``Informed Student Borrowing Act of
2023''.
SEC. 2. ENTRANCE COUNSELING FINANCIAL AID DISCLOSURES.
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'';
(2) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``a disbursement to a first-time borrower'' and
inserting ``the first disbursement to a borrower in
each award year''; and
(B) in the matter preceding subclause (I) of
paragraph clause (ii), by striking ``may'' and
inserting ``shall'';
(3) in paragraph (2)--
(A) by redesignating subparagraphs (A) through (K)
as subparagraphs (B) through (L);
(B) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) An explanation that the borrower will need to
affirmatively determine and manually enter, in
accordance with subsection (n), the Federal loan amount
that the borrower will borrow (which may be equal to or
less than the Federal loan amount for which the
borrower is eligible) for each award year.'';
(C) by striking subparagraph (G) and inserting the
following:
``(G) Sample monthly repayment amounts, under a
standard repayment plan and under the income-driven
repayment plan that had the highest enrollment in the
previous year for borrowers (excluding parent
borrowers), based on--
``(i)(I) the median levels of indebtedness,
as appropriate, of--
``(aa) undergraduate borrowers of
Federal Direct Stafford Loans or
Federal Unsubsidized Stafford Loans who
were enrolled in the institution;
``(bb) graduate borrowers of
Federal Direct Stafford Loans, Federal
Unsubsidized Stafford Loans, or Federal
Direct Plus Loans who were enrolled in
the institution; and
``(cc) parent borrowers of Federal
Direct Plus Loans made on behalf of
dependent students who were enrolled at
the institution;
``(II) the median cumulative indebtedness
of borrowers of loans described in subclause
(I) in the same program as the borrower at the
same institution; and
``(ii) the median annual earnings for
individuals who attended the institution, as
described in subparagraph (N).''; and
(D) by adding at the end the following:
``(M) A statement that the borrower does not have
to accept the full amount of loans for which the
borrower is eligible, and an explanation that loan
eligibility calculations are determined based on a cost
of attendance that may include expenses such as
housing, food, and transportation.
``(N) The most recent College Scorecard information
(or information from a similar successor website) that
shows the median annual earnings of students who
received Federal student aid and who are no longer
enrolled at the institution and are working, at the
time that is 10 years after the date of such students'
entry to the institution--
``(i) for individuals who were enrolled in
the institution; and
``(ii) if available through the College
Scorecard (or similar successor website), for
individuals who were enrolled in the borrower's
undergraduate or graduate program.
``(O) The percentage of borrowers who attended the
institution and have completed or are no longer
enrolled that are in active repayment (as compared to
all borrowers who attended the institution and have
completed or are no longer enrolled).
``(P) For undergraduate borrowers, the completion
rate of the institution, as available through the
College Scorecard (or similar successor website), for
the most recent year for which data are available.
``(Q) A statement that--
``(i) the statistics provided under this
paragraph are averages and median values based
on past years;
``(ii) the borrower's repayment amounts,
median earnings, and likelihood of completion
may vary from such statistics; and
``(iii) as appropriate, parent borrowers
should be aware that information about the
median earnings, completion rate, and
percentage of borrowers in active repayment is
based on data that excludes parent borrowers.
``(R) A statement in writing and in a form the
borrower may keep, of the annual percentage rate
applicable to the loan based on a 10 year standard
repayment plan, taking into account--
``(i) the amount of the loan;
``(ii) the stated interest rate of the
loan;
``(iii) the standard term for a loan of the
same type;
``(iv) any fees or additional costs
associated with the loan; and
``(v) any capitalization of interest on the
loan.''; and
(4) by adding at the end the following:
``(3) Information from the department of education.--The
Secretary shall provide institutions with the data and
statistics necessary to enable institutions to carry out this
subsection.''.
SEC. 3. ANNUAL REQUIREMENT TO MANUALLY ENTER LOAN AMOUNT.
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092),
as amended by section 2, is further amended by adding at the end the
following:
``(n) Annual Requirement To Manually Enter Loan Amount.--
``(1) In general.--In addition to the other requirements of
this section and in accordance with paragraph (2), each
eligible institution shall ensure that, for each award year,
each borrower enrolled in the institution who receives a
Federal Direct Loan (other than a Federal Direct Consolidation
Loan) and each parent borrower who is borrowing a Federal
Direct PLUS Loan made on behalf of a student who is enrolled in
the institution, for such year, shall manually enter, either in
writing or through electronic means, the exact dollar amount of
Federal Direct Loan funding that such borrower desires to
borrow for such year.
``(2) Method.--The eligible institution shall ensure that
the borrower carries out the activity described in paragraph
(1)--
``(A) in the case of a student borrower, in the
course of the process used by the institution for
students to accept a student loan award;
``(B) prior to the institution certifying a Federal
Direct Loan (other than a Federal Direct Consolidation
Loan), including a Federal Direct PLUS Loan made on
behalf of a student, for disbursement to a borrower;
and
``(C) in the case of a student borrower, after
ensuring that the student has completed all of the
counseling requirements under subsection (l).''.
SEC. 4. WORK STUDY.
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092),
as amended by sections 2 and 3, is further amended by adding at the end
the following:
``(n) Work Study.--If an institution provides a student or a
prospective student with a financial aid award notification that
includes work study, the institution shall ensure that the notification
includes an explanation that any work study funds are not directly
awarded to the student or institution, and such amounts must be earned
through the student's completion of work over time.''.
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