Bill > HR3298

This bill, known as the "Know Before You Owe Federal Student Loan Act of 2025," introduces comprehensive changes to student loan counseling and disclosure requirements. The legislation modifies pre-loan counseling protocols by requiring institutions to provide more detailed financial guidance to student borrowers, including estimates of monthly loan payments relative to expected income, living expenses, and potential health insurance costs. It mandates that students manually confirm the exact dollar amount of loans they wish to borrow and requires institutions to warn students about the risks of high debt-to-income ratios. Additionally, the bill introduces a new requirement for lenders to provide quarterly statements to borrowers during periods when loan payments are not required, detailing loan balances, interest rates, total payments made, and offering guidance about voluntary payments and interest accumulation. The statements must also explain the potential long-term financial implications of not paying interest while in school or during deferment periods. The bill aims to improve financial literacy and transparency in student lending by ensuring borrowers have comprehensive, clear information about their loans at multiple stages of the borrowing and repayment process.

Education

https://www.congress.gov/bill/119th-congress/house-bill/3298/all-info