,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #cfab  ,,in ,,the ,,house ,,of  
,,representatives  ,november #ba1       
#bjac,mr4 ,polis 7for himself1 ,ms4     
,schwartz1 and ,mr4 ,bishop of ,new     
,york7 introduced the following bill2   
which was referred to the ,committee on 
,education and the ,workforce1 and in   
addition to the ,committee on ,financial
 ,services1 for a period to be          
subsequently determined by the ,speaker1
 in each case for consideration of such 
provisions as fall within the           
jurisdiction of the committee concerned 
,a ,,bill  ,to amend the ,truth in      
,lending ,act and the ,higher ,education
 ,act of #aife to require certain       
creditors to obtain certifications from 
institutions of higher education1 and   
for other purposes4  #a4 ,short title   
,this ,act may be cited as the ,know    
,before ,you ,owe ,private ,student     
,loan ,act of #bjac4  #b4 ,amendments to
 the truth in lending act  7a7 ,in      
general ,section #abh7;e7 of the ,truth 

in ,lending ,act 7#ae ,u4,s4,c4         
#afch7;e77 is amended-- 7#a7 by striking
 paragraph 7#c7 and inserting the       
following3  7#c7 ,institutional         
certification required  7,a7 ,in general
 ,except as provided in subparagraph    
7,b71 before a creditor may issue any   
funds with respect to an extension of   
credit described in this subsection1 the
 creditor shall obtain from the relevant
 institution of higher education where  
such loan is to be used for a student1  
such institution's certification of--   
7i7 the enrollment status of the        
student2  7ii7 the student's cost of    
attendance at the institution as        
determined by the institution under part
 ,f of title ,,iv of the ,higher        
,education ,act of #aife2 and  7iii7 the
 difference between-- 7,i7 such cost of 
attendance2 and  7,,ii7 the student's   
estimated financial assistance1         
including such assistance received under
 title ,,iv of the ,higher ,education   
,act of #aife and other financial       

assistance known to the institution1 as 
applicable4  7,b7 ,exception            
,notwithstanding subparagraph 7,a71 a   
creditor may issue funds with respect to
 an extension of credit described in    
this subsection without obtaining from  
the relevant institution of higher      
education such institution's            
certification if such institution fails 
to provide within #ae business days of  
the creditor's request for such         
certification-- 7i7 the requested       
certification2 or  7ii7 notification    
that the institution has received the   
request for certification and will need 
additional time to comply with the      
certification request4  7,c7 ,loans     
disbursed without certification ,if a   
creditor issues funds without obtaining 
a certification1 as described in        
subparagraph 7,b71 such creditor shall  
report the issuance of such funds in a  
manner determined by the ,director of   
the ,bureau4  2  7#b7 by redesignating  
paragraphs 7#i71 7#aj71 and 7#aa7 as    

paragraphs 7#aj71 7#aa71 and 7#ab71     
respectively2 and  7#c7 by inserting    
after paragraph 7#h7 the following3     
7#i7 ,provision of information  7,a7    
,provision of information to students   
7i7 ,loan statement ,a creditor that    
issues any funds with respect to an     
extension of credit described in this   
subsection shall send loan statements1  
where such loan is to be used for a     
student1 to borrowers of such funds not 
less than once every #c months during   
the time that such student is enrolled  
at an institution of higher education4  
7ii7 ,contents of loan statement ,each  
statement described in clause 7i7       
shall-- 7,i7 report the borrower's total
 remaining debt to the creditor1        
including accrued but unpaid interest   
and capitalized interest2  7,,ii7 report
 any debt increases since the last      
statement2 and  7,,iii7 list the current
 interest rate for each loan4  7,b7     
,notification of loans disbursed without
 certification ,on or before the date a 

creditor issues any funds with respect  
to an extension of credit described in  
this subsection1 the creditor shall     
notify the relevant institution of      
higher education1 in writing1 of the    
amount of the extension of credit and   
the student on whose behalf credit is   
extended4 ,the form of such written     
notification shall be subject to the    
regulations of the ,bureau4  7,c7       
,annual report ,a creditor that issues  
funds with respect to an extension of   
credit described in this subsection     
shall prepare and submit an annual      
report to the ,bureau containing the    
required information about private      
student loans to be determined by the   
,bureau1 in consultation with the       
,secretary of ,education4  4  7b7       
,definition of private education loan   
,section #adj7;a77#g77;,a7 of the ,truth
 in ,lending ,act 7#ae ,u4,s4,c4        
#afej7;a77#g77;,a77 is amended-- 7#a7 by
 redesignating clause 7ii7 as clause    
7iii72  7#b7 in clause 7i71 by striking 

and after the semicolon2 and  7#c7 by   
adding after clause 7i7 the following3  
7ii7 is not made1 insured1 or guaranteed
 under title ,,vii or title ,,viii of   
the ,public ,health ,service ,act 7#db  
,u4,s4,c4 #bib et seq4 and #bif et      
seq472 and  4  7c7 ,regulations ,not    
later than #cfe days after the date of  
enactment of this ,act1 the ,bureau of  
,consumer ,financial ,protection shall  
issue regulations in final form to      
implement paragraphs 7#c7 and 7#i7 of   
section #abh7;e7 of the ,truth in       
,lending ,act 7#ae ,u4,s4,c4 #afch7;e771
 as amended by subsection 7a74 ,such    
regulations shall become effective not  
later than #f months after their date of
 issuance4  #c4 ,amendment to the higher
 education act of #aife  7a7 ,amendment 
to the higher education act of #aife    
,section #dhg7;a7 of the ,higher        
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajid7;a77 is amended by striking       
paragraph 7#bh7 and inserting the       
following3  7#bh7 7,a7 ,the institution 

shall-- 7i7 upon the request of a       
private educational lender1 acting in   
connection with an application initiated
 by a borrower for a private education  
loan in accordance with section         
#abh7;e77#c7 of the ,truth in ,lending  
,act1 provide certification to such     
private educational lender-- 7,i7 that  
the student who initiated the           
application for the private education   
loan1 or on whose behalf the application
 was initiated1 is enrolled or is       
scheduled to enroll at the institution2 
7,,ii7 of such student's cost of        
attendance at the institution as        
determined under part ,f of this title2 
and  7,,iii7 of the difference between--
 7aa7 the cost of attendance at the     
institution2 and  7bb7 the student's    
estimated financial assistance received 
under this title and other assistance   
known to the institution1 as applicable2
 and  7ii7 provide the certification    
described in clause 7i71 or notify the  
creditor that the institution has       

received the request for certification  
and will need additional time to comply 
with the certification request-- 7,i7   
within #ae business days of receipt of  
such certification request2 and  7,,ii7 
only after the institution has completed
 the activities described in            
subparagraph 7,b74  7,b7 ,the           
institution shall1 upon receipt of a    
certification request described in      
subparagraph 7,a77i71 and prior to      
providing such certification-- 7i7      
determine whether the student who       
initiated the application for the       
private education loan1 or on whose     
behalf the application was initiated1   
has applied for and exhausted the       
,federal financial assistance available 
to such student under this title and    
inform the student accordingly2 and     
7ii7 provide the borrower whose loan    
application has prompted the            
certification request by a private      
education lender1 as described in       
subparagraph 7,a77i71 with the following

 information and disclosures3 7,i7 ,the 
availability of1 and the borrower's     
potential eligibility for1 ,federal     
financial assistance under this title1  
including disclosing the terms1         
conditions1 interest rates1 and         
repayment options and programs of       
,federal student loans4  7,,ii7 ,the    
borrower's ability to select a private  
educational lender of the borrower's    
choice4  7,,iii7 ,the impact of a       
proposed private education loan on the  
borrower's potential eligibility for    
other financial assistance1 including   
,federal financial assistance under this
 title4  7,,iv7 ,the borrower's right to
 accept or reject a private education   
loan within the #cj-;day period         
following a private educational lender's
 approval of a borrower's application   
and about a borrower's #c-;day right to 
cancel period4  7,c7 ,for purposes of   
this paragraph1 the terms private       
educational lender and private education
 loan have the meanings given such terms

 in section #adj of the ,truth in       
,lending ,act 7#ae ,u4,s4,c4 #afej74  4 
7b7 ,effective date ,the amendment made 
by subsection 7a7 shall take effect on  
the effective date of the regulations   
described in section #b7;c74  #d4       
,report ,not later than #bd months after
 the issuance of regulations under      
section #b7;c71 the ,director of the    
,bureau of ,consumer ,financial         
,protection and the ,secretary of       
,education shall jointly submit to      
,congress a report on the compliance of 
institutions of higher education and    
private educational lenders with section
 #abh7;e77#c7 of the ,truth in ,lending 
,act 7#ae ,u4,s4,c4 #afch7;e771 as      
amended by section #b1 and section      
#dhg7;a77#bh7 of the ,higher ,education 
,act of #aife 7#bj ,u4,s4,c4 #ajid7;a771
 as amended by section #c4 ,such report 
shall include information about the     
degree to which specific institutions   
utilize certifications in effectively   
encouraging the exhaustion of ,federal  

student loan eligibility and lowering   
student private education loan debt4