[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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