,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bdei  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #aj1     
#bjad ,mr4 ,grassley introduced the     
following bill2 which was read twice and
 referred to the ,committee on ,health1 
,education1 ,labor1 and ,pensions  ,a   
,,bill  ,to revise counseling           
requirements for certain borrowers of   
student loans and for other purposes4   
#a4  ,short title  ,this ,act may be    
cited as the ,know ,before ,you ,owe    
,federal ,student ,loan ,act of #bjad4  
#b4  ,pre-,loan ,counseling and         
certification of loan amount  ,section  
#dhe7l7 of the ,higher ,education ,act  
of #aife 7#bj ,u4,s4,c4 #ajib7l77 is    
amended--  7#a7 in the subsection       
heading1 by striking ,entrance          
,counseling and inserting ,pre-,loan    
,counseling2  7#b7 in paragraph 7#a7--  
7,a7 in subparagraph 7,a7--  7i7 in the 
matter preceding clause 7i71 by striking
 a disbursement to a first-time borrower
 of a loan and inserting the first      

disbursement of each new loan 7or the   
first disbursement in each award year if
 more than one new loan is obtained in  
the same award year72 and  7,b7 in      
clause 7ii77,i71 by striking an entrance
 counseling and inserting a counseling2 
7#c7 in paragraph 7#b7--  7,a7 by       
striking clause 7i7 of subparagraph 7,g7
 and inserting the following3  7i7 an   
estimate of the borrower's projected    
loan debt-to-income ratio upon          
graduation1 calculated using the best   
available data on starting wages for the
 borrower's program of study and the    
estimated total student loan debt1      
including ,federal and private loan debt
 already incurred and the estimated     
future debt required to complete the    
program of study2 and  2 and  7,b7 by   
adding at the end the following3  7,l7  
,a statement that the borrower should   
borrow the minimum amount necessary to  
cover expenses and that the borrower    
does not have to accept the full amount 
of loans for which the borrower is      

eligible4  7,m7 ,information about the  
default risk of having a projected loan 
debt-to-income ratio greater than #ab   
percent4  7,n7 ,options for reducing    
borrowing through scholarships1 reduced 
expenses1 work-study1 or other work     
opportunities4  7,o7 ,an explanation of 
the importance of graduating on time to 
avoid additional borrowing1 and         
information on how adding an additional 
year of study impacts total             
indebtedness4  2 and  7#d7 by adding at 
the end the following3  7#c7 ,in        
addition to the other requirements of   
this subsection1 each eligible          
institution shall1 prior to certifying a
 ,federal direct loan under part ,d for 
disbursement to a student 7other than a 
,federal ,direct ,consolidation ,loan or
 a ,federal ,direct ,,plus loan made on 
behalf of a student71 ensure that the   
student manually enter1 either in       
writing or through electronic means1 the
 exact dollar amount of ,federal direct 
loan funding under part ,d that such    

student desires to borrow4  4  #c4      
,conforming ,amendments  7a7  ,program  
participation agreements  ,section      
#dhg7;e77#b77;,b77ii77,,iv7 of the      
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajid7;e77#b77;,b77ii77,,iv77 
is amended--  7#a7 by striking ,entrance
 and exit counseling and inserting      
,pre-loan and exit counseling2 and  7#b7
 by striking entrance and exit          
counseling and inserting pre-loan and   
exit counseling4  7b7  ,regulatory      
relief and improvement  ,section #dhg;,a
 of the ,higher ,education ,act of #aife
 7#bj ,u4,s4,c4 #ajid;a7 is amended by  
striking entrance and exit interviews   
and inserting pre-loan and exit         
interviews each place the term appears4