,,ii #aac? ,,congress #a/ ,session ,s4 #edf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,m>* #ac1 #bjac ,mr4 ,h>k9 7= himself1 ,ms4 ,mikulski1 ,mrs4 ,murray1 ,mr4 ,frank51 ,ms4 ,w>r51 ,mr4 ,blum5?al1 ,mr4 ,s&]s1 ,mr4 ,rockefell]1 ,mr4 ,durb91 ,mr4 ,laut5b]g1 & ,mr4 ,murphy7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to am5d entrance c\nsel+ & exit c\nsel+ = borr[]s "u ! ,high] ,education ,act ( #aife1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,sm>t] ,borr[+ ,act4 #b4 ,am5dm5ts to ! ,high] ,education ,act ( #aife 7a7 ,notification ( ,pell grant eligibility ,section #dja ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a7 is am5d$ by add+ at ! end ! foll[+3 7k7 ,notification ( ,pell grant eligibility 7#a7 ,9 ,g5]al ,ea* eligible in/itution %all1 n less ?an once e #b ye>s :ile a /ud5t is enroll$ 9 ! in/itution1 notify ea* /ud5t enroll$ 9 ! in/itution :o is receiv+ a ,f$]al ,pell ,grant ( ! p]iod ( "t t ! /ud5t has rema9+ be=e ! /ud5t w n be eligible = a ,f$]al ,pell ,grant 9 accordance ) subsection 7c77#e7 because ! p]iod ( "t = :i* ! /ud5t has receiv$ a ,f$]al ,pell ,grant1 9 ! aggregate1 exce$s ! p]iod ( enrollm5t describ$ 9 subsection 7c77#e74 7#b7 ,pell ,grant ,recipi5ts :o are borr[]s ,9 ! case ( a /ud5t :o is receiv+ a ,f$]al ,pell ,grant :o is also a borr[] ( a loan made1 insur$1 or gu>ante$ "u "p ,b 7o!r ?an a loan made pursuant to section #dbh;,c or a loan made on behalf ( a /ud5t pursuant to section #dbh;,b7 or made "u "p ,d 7o!r ?an a ,f$]al ,direct ,consolidation ,loan or a ,f$]al ,direct ,,plus loan made on behalf ( a /ud5t71 ! requirem5t describ$ 9 p>agraph 7#a7 %all be c>ri$ out 9 accordance ) ! notification & c\nsel+ requirem5ts describ$ 9 section #dhe7o74 4 7b7 ,in/itution ,eligibility ,section #dce ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhe7 is am5d$-- 7#a7 9 subsection 7a77#g7-- 7,a7 9 subp>agraph 7,a71 by add+ at ! end ! foll[+3 7iii7 ,summ>y ( default prev5tion plan ,ea* in/itution subject to ?is subp>agraph %all prep>e a summ>y ( ! plan describ$ "u clause 7i7 t is direct$ to a /ud5t audi5ce1 & %all make ! summ>y available to /ud5ts at ! in/itution4 2 & 7,b7 by ins]t+ aft] subp>agraph 7,b7 ! foll[+3 7,c7 ,additional notification & loan c\nsel+ requirem5ts ,an in/itution ^: cohort default rate is equal to or great] ?an ! ?re%old p]c5tage specifi$ 9 p>agraph 7#b77;,b77iv7 9 any fiscal ye> %all1 9 ord] to reta9 or rega91 z ! case may be1 /atus z an eligible in/itution1 c>ry out ! additional notification & loan c\nsel+ requirem5ts describ$ "u section #dhe7o77#c74 4 7c7 ,/ud5t ,loan ,c\nsel+ ,section #dhe ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 9 p>agraph 7#a77;,a7-- 7i7 by /rik+ clause 7i7 & ins]t+ ! foll[+3 7i7 p]sonaliz$ in=mation t reflects ! borr[]'s actual borr[+ circum/ances1 :i* %all include-- 7,i7 ! repaym5t plans available1 includ+ income-bas$ & pay-z-y-e>n repaym5t options2 7,,ii7 a description ( ! diff]5t features ( ea* plan2 & 7,,iii7 p]sonaliz$ in=mation %[+ e/imates ( ! borr[]'s anticipat$ mon?ly paym5ts & ! diff]5ce 9 total int]e/ paid & total paym5ts "u ea* plan2 2 7ii7 by r$esignat+ clauses 7viii7 & 7ix7 z clauses 7ix7 & 7x71 respectively2 7iii7 by ins]t+ aft] clause 7vii7 ! foll[+3 7viii7 a /atem5t t /ud5t loans mu/ be repaid ev5 if ! /ud5t is dissatisfi$ ) ! quality ( education t ! /ud5t receives2 2 & 7iv7 by add+ at ! end ! foll[+3 7,c7 ,! c\nsel+ describ$ 9 subp>agraph 7,a7-- 7i7 %all be provid$ 9 a simple & und]/&able mann] t includes me*anisms to *eck = compreh5sion2 & 7ii7 %all be provid$-- 7,i7 dur+ an exit c\nsel+ session conduct$ 9 p]son2 or 7,,ii7 onl9e4 2 & 7,b7 9 p>agraph 7#b77;,a77iv71 by /rik+ 1 address1 social security numb]1 ref]5ces1 & driv]'s lic5se numb] & ins]t+ 1 po/al address1 social security numb]1 ref]5ces1 driv]'s lic5se numb]1 phone numb]1 & p]sonal electronic mail+ address2 7#b7 9 subsection 7l7-- 7,a7 by /rik+ p>agraph 7#a7 & ins]t+ ! foll[+3 7#a7 ,disclosure requir$ prior to sign+ ma/] promissory note ,ea* eligible in/itution %all1 prior to ! sign+ ( ! ma/] promissory note to a fir/-"t borr[] at su* in/itution ( a loan made "u "p ,d 7o!r ?an a ,f$]al ,direct ,consolidation ,loan or a ,f$]al ,direct ,,plus loan made on behalf ( a /ud5t71 ensure t ! borr[] receives compreh5sive in=mation on ! t]ms & conditions ( ! loan & ( ! responsibilities ! borr[] has ) respect to su* loan 9 accordance ) p>agraph 7#b74 ,su* in=mation-- 7,a7 %all be provid$ ?r\gh ! use ( int]active programs t te/ ! borr[]'s und]/&+ ( ! t]ms & conditions ( ! borr[]'s loans "u "p ,d1 us+ simple & und]/&able language & cle> =matt+2 & 7,b7 %all be provid$-- 7i7 dur+ an entrance c\nsel+ session conduct$ 9 p]son2 or 7ii7 onl9e4 2 7,b7 9 p>agraph 7#b71 by add+ at ! end ! foll[+3 7,l7 7i7 ,a disclosure t ,f$]al /ud5t loans (f] g5]ally m favorable t]ms & b5eficial repaym5t options ?an private education loans1 an explanation ( ! diff]5ce & relevance betwe5 /ud5t loans ) a fix$ int]e/ rate z comp>$ to /ud5t loans ) a v>iable int]e/ rate1 & a recomm5dation t /ud5ts exam9e available ,f$]al /ud5t loan options be=e apply+ = private education loans4 7ii7 ,an explanation writt5 by ! ,secret>y1 9 consultation ) ! heads ( relevant ,f$]al ag5cies1 includ+ ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau & ! ,commission] ( ! ,int]nal ,rev5ue ,s]vice1 (-- 7,i7 ! b5efits unique to /ud5t loans made "u "p ,d1 includ+ repaym5t plans1 loan =giv5ess1 & loan def]m5t2 & 7,,ii7 ! loan t]ms t borr[]s %\ld exam9e c>efully if consid]+ a private education loan4 7,m7 ,an explanation1 if applicable1 t a /ud5t may refuse all or "p ( a /ud5t loan made "u "p ,d t is made to ! /ud5t1 :i* c\ld help m9imize ! /ud5t's debt obligations4 7,n7 ,in=mation relat+ to ! in/itution's cohort default rate1 includ+-- 7i7 ! cohort default rate1 z describ$ 9 section #dce7m71 ( ! in/itution & an easy to und]/& description ( :at a cohort default rate is2 7ii7 ! p]c5tage ( /ud5ts at ! in/itution ( high] education :o borr[ ,f$]al /ud5t loans "u ?is title2 7iii7 ! national av]age cohort default rate 7z det]m9$ by ! ,secret>y 9 accordance ) section #dce7m772 & 7iv7 if ! cohort default rate = ! in/itution 7z describ$ 9 clause 7i77 is great] ?an ! national av]age cohort default rate 7z describ$ 9 clause 7iii771 !n ! in/itution %all provide-- 7,i7 ! loan repaym5t rate at ! in/itution1 z calculat$ by ! ,secret>y 9 accordance ) subsection 7n71 &1 if applicable1 ! loan repaym5t rate ( ea* program at ! in/itution t is subject to ga9ful employm5t regulations "u section #ffh4g ( title #cd1 ,code ( ,f$]al ,regulations2 7,,ii7 an easy to und]/& description ( :at a loan repaym5t rate is2 & 7,,iii7 a disclosure to ! /ud5t t ! in/itution's cohort default rate is above ! national av]age4 7,o7 ,a /atem5t t /ud5t loans mu/ be repaid ev5 if ! /ud5t is dissatisfi$ ) ! quality ( education t ! /ud5t receives4 7,p7 ,! p]c5t ( /ud5ts at ! in/itution :o obta9 a degree or c]tificate )9 #aej p]c5t ( ! normal "t = completion (1 or graduation f1 ! /ud5t's program4 2 & 7,c7 by add+ at ! end ! foll[+3 7#c7 ,borr[] ,contact ,in=mation ,ea* eligible in/itution %all require t a borr[] :o receives entrance c\nsel+ "u ?is subsection on or aft] ! date ( enactm5t ( ! ,sm>t] ,borr[+ ,act submit to ! in/itution1 dur+ ! entrance c\nsel+ requir$ by ?is subsection1 ! borr[]'s contact in=mation at ! "t ( ! entrance c\nsel+1 includ+ ! borr[]'s-- 7,a7 phone numb]2 7,b7 po/al address2 & 7,c7 p]sonal electronic mail+ address4 2 & 7#c7 by add+ at ! end ! foll[+3 7n7 ,loan ,repaym5t ,rate 7#a7 ,9 ,g5]al ,n less ?an once e fiscal ye>1 ! ,secret>y %all calculate ! loan repaym5t rate = ea* in/itution ( high] education t is p>ticipat+ 9 a program "u ?is title or seek+ to rega9 eligibility to p>ticipate 9 a program "u ?is title4 ,! ,secret>y %all make ! loan repaym5t rate = ea* su* in/itution publicly available on ! ,college ,navigator website ( ! ,national ,c5t] = ,education ,/ati/ics4 7#b7 ,me?od ( ,calculation 7,a7 ,9 ,g5]al ,= purposes ( ?is subsection1 ! loan repaym5t rate = an in/itution %all be equal to ! proportion t-- 7i7 ! sum ( ! total orig9al out/&+ pr9cipal balance ( all loans paid 9 full ( ! in/itution plus ! total orig9al out/&+ pr9cipal balance ( all paym5ts-made loans ( ! in/itution2 be>s to 7ii7 ! orig9al out/&+ pr9cipal balance ( all loans describ$ 9 subp>agraph 7,b7 ( ! in/itution4 7,b7 ,orig9al out/&+ pr9cipal balance 7i7 ,9 ,g5]al ,= purposes ( subp>agraph 7,a71 ! orig9al out/&+ pr9cipal balance is ! total am\nt ( ! out/&+ balance1 includ+ capitaliz$ int]e/1 on loans "u "p ,b & "p ,d ow$ by /ud5ts = att5dance at ! in/itution on ! date ^? loans fir/ ent]$ repaym5t1 subject to clauses 7ii7 & 7iii74 7ii7 ,exclusion ,! orig9al out/&+ pr9cipal balance does n include loans made to p>5t borr[]s "u section #dbh;,b or ! ,f$]al ,direct ,,plus ,loan ,program4 7iii7 ,consolidation ,loans ,= loans made "u section #dbh;,c or ,f$]al ,direct ,consolidation ,loans1 ! orig9al out/&+ pr9cipal balance is ! orig9al out/&+ pr9cipal balance ( ! loans "u "p ,b & "p ,d attributable to a borr[]'s att5dance at ! in/itution4 7,c7 ,loans ,paid 9 ,full 7i7 ,9 ,g5]al ,= purposes ( subp>agraph 7,a77i71 a loan paid 9 full is a loan describ$ 9 subp>agraph 7,b7 t-- 7,i7 7aa7 has nev] be5 9 default2 or 7bb7 9 ! case ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan1 nei!r ! consolidation loan nor ! und]ly+ loan or loans has ev] be5 9 default2 & 7,,ii7 has be5 paid 9 full by a borr[]4 7ii7 ,consolidation loans & ref9anc+ ,a loan t is paid ?r\gh a loan made "u section #dbh;,c1 a ,f$]al ,direct ,consolidation ,loan1 or "u ano!r ref9anc+ process provid$ = "u ?is ,act1 is n c\nt$ z a loan paid 9 full = purposes ( ?is subp>agraph until ! consolidation loan or o!r f9ancial in/rum5t is paid 9 full by ! borr[]4 7,d7 ,paym5ts-,made ,loans 7i7 ,9 ,g5]al ,9 ?is p>agraph1 ! t]m paym5ts-made loan is a loan describ$ 9 subp>agraph 7,b7 t has nev] be5 9 default or1 9 ! case ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan1 nei!r ! consolidation loan nor ! und]ly+ loan or loans h ev] be5 9 default1 :]e-- 7,i7 = all und]graduate programs1 paym5ts made by a borr[] dur+ ! mo/ rec5tly complet$ fiscal ye> r$uce ! out/&+ balance ( a loan1 includ+ ! out/&+ balance ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan1 to an am\nt t is less ?an ! out/&+ balance ( ! loan at ! beg9n+ ( t fiscal ye>2 7,,ii7 = po/-baccalaureate c]tificate1 ma/]'s degree1 doctoral degree1 or fir/-pr(essional degree programs1 ! total out/&+ balance ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan at ! end ( ! mo/ rec5tly complet$ fiscal ye> is less ?an ! total out/&+ balance ( ! consolidation loan at ! beg9n+ ( ! fiscal ye>2 or 7,,iii7 a borr[] is 9 ! process ( qualify+ = public s]vice loan =giv5ess "u section #dee7m7 & submits an employm5t c]tification to ! ,secret>y t demon/rates ! borr[] is engag$ 9 qualify+ employm5t & ! borr[] made qualify+ paym5ts on ! loan dur+ ! mo/ rec5tly complet$ fiscal ye>4 7ii7 ,out/&+ balance ( a loan 7,i7 ,9 ,g5]al ,! out/&+ balance ( a loan includes any unpaid accru$ int]e/ t has n be5 capitaliz$4 7,,ii7 ,consolidation loan ,! out/&+ balance ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan includes any unpaid accru$ int]e/ t has n be5 capitaliz$4 7,e7 ,exclusions ,= ! mo/ rec5tly complet$ fiscal ye>1 ! orig9al out/&+ pr9cipal balance ( ! foll[+ loans is exclud$ f bo? ! num]ator & ! d5om9ator ( ! ratio3 7i7 ,loans t 7 9 an 9-s*ool def]m5t /atus "u section #dbh7;b77#a77,m77i7 or #dee7;f77#b77;,a7 dur+ any "p ( ! fiscal ye>4 7ii7 ,loans t 7 9 a milit>y-relat$ def]m5t /atus "u section #dbh7;b77#a77,m77ii7 or #dee7;f77#b77;,c7 dur+ any "p ( ! fiscal ye>4 7iii7 ,loans t 7 dis*>g$ z a result ( ! dea? ( ! borr[] "u subsection 7a77#a7 or 7d7 ( section #dcg4 7iv7 ,loans t 7 assign$ or transf]r$ to ! ,secret>y & t are be+ consid]$ = dis*>ge z a result ( ! total & p]man5t disability ( ! borr[]1 or 7 dis*>g$ by ! ,secret>y on t basis "u section #dcg7;a74 7o7 ,additional notifications & c\nsel+ = borr[]s 7#a7 ,annual ,notifications ,subject to subp>agraph 7,e71 ea* eligible in/itution %all1 n less ?an once e ye> :ile a /ud5t is enroll$ 9 ! in/itution1 c>ry out ! notification requirem5ts describ$ 9 subp>agraphs 7,a71 7,b71 7,c71 & 7,d7 ) respect to a borr[] ( a loan made1 insur$1 or gu>ante$ "u "p ,b 7o!r ?an a loan made pursuant to section #dbh;,c or a loan made on behalf ( a /ud5t pursuant to section #dbh;,b7 or made "u "p ,d 7o!r ?an a ,f$]al ,direct ,consolidation ,loan or a ,f$]al ,direct ,,plus loan made on behalf ( a /ud5t74 ,su* notification requirem5ts may be fulfill$ by notifications provid$ ?r\gh exi/+ me?ods ( communication1 su* z ! annual f9ancial aid aw>d lett]4 7,a7 ,/ud5t ,loan ,balance2 ,loan ,t]ms ,! eligible in/itution %all provide ! borr[] ) a writt5 notification (-- 7i7 ! borr[]'s out/&+ balance ( pr9cipal & int]e/ ow+ on any loan made1 insur$1 or gu>ante$ "u ?is title2 7ii7 ! borr[]'s repaym5t options2 & 7iii7 a disclosure t ,f$]al /ud5t loans (f] g5]ally m favorable t]ms & b5eficial repaym5t options ?an private education loans1 an explanation ( ! diff]5ce & relevance betwe5 /ud5t loans ) a fix$ int]e/ rate z comp>$ to /ud5t loans ) a v>iable int]e/ rate1 & a recomm5dation t /ud5ts exam9e available ,f$]al /ud5t loan options be=e apply+ = private education loans4 7,b7 ,f$]al ,direct ,/af=d ,loan ,eligibility ,9 addition to ! notifications "u subp>agraph 7,a7 & "u subp>agraph 7,c71 if applicable1 9 ! case ( a borr[] describ$ 9 p>agraph 7#a7 :o qualifies = a ,f$]al ,direct ,/af=d ,loan & :o 0 a new borr[] on or aft] ,july #a1 #bjac1 ! in/itution %all provide-- 7i7 a writt5 notification ( ! p]iod ( "t t ! borr[] has rema9+ be=e ! borr[] w n be eligible = a ,f$]al ,direct ,/af=d ,loan 9 accordance ) section #dee7q7 because ! p]iod ( "t = :i* ! borr[] has receiv$ ,f$]al ,direct ,/af=d ,loans1 9 ! aggregate1 exce$s ! p]iod ( enrollm5t describ$ 9 section #dee7q77#c72 & 7ii7 a writt5 notification to su* /ud5t :5 ! p]iod ( "t = :i* ! borr[] has receiv$ ,f$]al ,direct ,/af=d ,loans1 9 ! aggregate1 rea*es-- 7,i7 except z provid$ 9 subclause 7,,ii7 or 7,,iii71 a p]iod equal to #ajj p]c5t ( ! publi%$ l5g? ( ! educational program 9 :i* ! /ud5t is enroll$2 7,,ii7 9 ! case ( a borr[] :o 0 previ\sly enroll$ 9 #a or m o!r educational programs t began on or aft] ,july #a1 #bjac1 a p]iod equival5t to #b_/c ( ! maximum p]iod ( "t t ! borr[] is eligible to receive a ,f$]al ,direct ,/af=d ,loan1 z calculat$ 9 accordance ) section #dee7q77#c77;,a77ii72 or 7,,iii7 9 ! case ( a borr[] :o 0 or is enroll$ on less ?an a full-"t basis or 9 ! case ( a borr[] ^: c\rse ( /udy or program is describ$ 9 p>agraph 7#c77;,b7 or 7#d77;,b7 ( section #dhd7;b71 a p]iod equival5t to #b_/c ( ! maximum p]iod ( "t t ! borr[] is eligible to receive a ,f$]al ,direct ,/af=d ,loan1 z calculat$ 9 accordance ) section #dee7q77#c77;,b74 7,c7 ,pell ,grant ,eligibility ,9 addition to ! notifications "u subp>agraph 7,a7 & "u subp>agraph 7,b71 if applicable1 9 ! case ( a borr[] describ$ 9 p>agraph 7#a7 :o is receiv+ a ,f$]al ,pell ,grant1 ! in/itution %all provide a writt5 notification to su* borr[] ( ! p]iod ( "t t ! borr[] has rema9+ be=e ! borr[] w n be eligible = a ,f$]al ,pell ,grant 9 accordance ) section #dja7;c77#e7 because ! p]iod ( "t = :i* ! borr[] has receiv$ a ,f$]al ,pell ,grant1 9 ! aggregate1 exce$s ! p]iod ( enrollm5t describ$ 9 section #dja7;c77#e74 7,d7 ,confirmation ( ,receipt ( ,notification ,ea* eligible in/itution %all require ! borr[]1 = ea* applicable notification describ$ 9 ?is p>agraph1 to provide writt5 confirmation 7includ+ ?r\gh electronic means7 t ! borr[] has receiv$ ! notification & und]/&s ! in=mation conta9$ 9 t notification4 7,e7 ,notifications by c]ta9 in/itutions ,9 ! case ( an in/itution describ$ 9 p>agraph 7#b77;,a71 ! notification requirem5ts "u ?is p>agraph 7includ+ ! confirmation ( notification describ$ 9 subp>agraph 7,d77 %all be c>ri$ out annually dur+ ! int]im 9-s*ool c\nsel+ describ$ 9 p>agraph 7#b77;,b74 7#b7 ,additional c\nsel+ requirem5ts = in/itutions ) great] ?an av]age cohort default rates 7,a7 ,applicability ,9 addition to ! c\nsel+ requir$ "u subsections 7b7 & 7l71 & any o!r requirem5ts "u ?is subsection1 ea* eligible in/itution t has a cohort default rate t is great] ?an ! national av]age cohort default rate 7z det]m9$ by ! ,secret>y 9 accordance ) section #dce7m77 %all c>ry out ! additional loan c\nsel+ describ$ 9 subp>agraphs 7,b71 7,c71 & 7,d74 ,su* c\nsel+ %all be provid$ 9 a simple & und]/&able mann] t includes me*anisms to *eck = compreh5sion4 7,b7 ,int]im 9-s*ool c\nsel+ ,ea* eligible in/itution describ$ 9 subp>agraph 7,a7 %all require ea* borr[] ( a loan made1 insur$1 or gu>ante$ "u "p ,b 7o!r ?an a loan made pursuant to section #dbh;,c or a loan made on behalf ( a /ud5t pursuant to section #dbh;,b7 or made "u "p ,d 7o!r ?an a ,f$]al ,direct ,consolidation ,loan or a ,f$]al ,direct ,,plus loan made on behalf ( a /ud5t71 to und]take n less ?an #a onl9e1 or 9-p]son1 c\nsel+ session at ! beg9n+ ( ea* academic ye> t ! borr[] is enroll$ at su* in/itution1 :i* %all include-- 7i7 ! applicable notification requirem5ts describ$ 9 p>agraph 7#a72 & 7ii7 a /atem5t t /ud5t loans mu/ be repaid ev5 if ! borr[] is dissatisfi$ ) ! quality ( education t ! borr[] receives4 7,c7 ,additional loan c\nsel+ requirem5ts = c]ta9 /ud5t borr[]s 7i7 ,9 ,g5]al ,ea* eligible in/itution describ$ 9 subp>agraph 7,a7 %all require ea* borr[] describ$ 9 clause 7ii7 to p>ticipate 9 an additional loan c\nsel+ session1 :i* %all-- 7,i7 be coord9at$ jo9tly by ! /ud5t's academic advisor & ! f9ancial aid (fice2 7,,ii7 include disclosure ( ! e/imat$ additional co/ ( att5dance t ! borr[] may incur by fail+ to progress ?r\gh ! borr[]'s educational program at a pace t meets ! requirem5ts = satisfactory progress1 z describ$ 9 section #dhd7;c72 & 7,,iii7 9 ! case ( a borr[] describ$ 9 clause 7ii77,,ii77bb71 include ! developm5t ( an in/itutionally approv$ academic plan design$ to ensure t ! borr[] w complete ! borr[]'s educational program )9 a reasonable timeframe4 7ii7 ,borr[]s 9 ne$ ( additional loan c\nsel+ ,a borr[] %all be subject to ! requirem5ts describ$ 9 clause 7i7 if-- 7,i7 ! borr[] has a loan made1 insur$1 or gu>ante$ "u "p ,b 7o!r ?an a loan made pursuant to section #dbh;,c or a loan made on behalf ( a /ud5t pursuant to section #dbh;,b7 or made "u "p ,d 7o!r ?an a ,f$]al ,direct ,consolidation ,loan or a ,f$]al ,direct ,,plus loan made on behalf ( a /ud5t72 & 7,,ii7 7aa7 ! borr[] has transf]r$ to ! in/itution f ano!r in/itution ( high] education2 or 7bb7 ! borr[] meets c]ta9 crit]ia t ! in/itution has det]m9$ may place a borr[] at great] risk ( default+ on /ud5t loans1 su* z swit*+ majors or decl>+ a major late1 )draw+ prematurely f an educational program1 or be+ 9 dang] ( fail+ to meet /&>ds ( academic progress4 7,d7 ,c\nsel+ = p>5t ,,plus borr[]s 7i7 ,9 ,g5]al ,ea* eligible in/itution describ$ 9 subp>agraph 7,a7 %all1 prior to disbursem5t ( a ,f$]al ,direct ,,plus loan made on behalf ( a /ud5t 9 an am\nt t is great] ?an #aj1jjj 7ei!r 9 a s+le aw>d ye> or 9 ! aggregate71 ensure t ! borr[] receives compreh5sive in=mation on ! t]ms & conditions ( ! loan & ( ! responsibilities ! borr[] has ) respect to su* loan4 ,su* in=mation-- 7,i7 %all be provid$ ?r\gh ! use ( int]active programs t te/ ! borr[]'s und]/&+ ( ! t]ms & conditions ( ! borr[]'s loan1 us+ simple & und]/&able language & cle> =matt+2 & 7,,ii7 %all be provid$-- 7aa7 dur+ a c\nsel+ session conduct$ 9 p]son2 or 7bb7 onl9e4 7ii7 ,in=mation to be provid$ ,! in=mation to be provid$ to ! borr[] "u clause 7i7 %all include ! foll[+3 7,i7 ,in=mation on h[ int]e/ accrues & is capitaliz$ dur+ p]iods :5 ! int]e/ is n paid by ! borr[]4 7,,ii7 ,an explanation ( :5 loan repaym5t beg9s & :at options are available = a borr[] :o may ne$ a def]m5t4 7,,iii7 ,! repaym5t plans t are available to ! borr[]1 includ+ p]sonaliz$ in=mation %[+-- 7aa7 e/imates ( ! borr[]'s anticipat$ mon?ly paym5ts "u ea* repaym5t plan t is available2 & 7bb7 ! diff]5ce 9 int]e/ paid & total paym5ts "u ea* repaym5t plan4 7,,iv7 ,! obligation ( ! borr[] to repay ! full am\nt ( ! loan1 reg>dless ( :e!r ! /ud5t on ^: behalf ! loan 0 made completes or does n complete ! program 9 :i* ! /ud5t is enroll$ )9 ! regul> "t = program completion4 7,v7 ,! obligation ( ! borr[] to repay ! full am\nt ( ! loan ev5 if ! /ud5t on ^: behalf ! loan 0 made is dissatisfi$ ) ! quality ( education t ! /ud5t receives4 7,,vi7 ,! likely consequ5ces ( default on ! loan1 includ+ adv]se cr$it reports1 del9qu5t debt collection proc$ures "u ,f$]al law1 & litigation4 7,,vii7 ,! "n ( & contact in=mation = ! individual ! borr[] may contact if ! borr[] has any que/ions ab\t ! borr[]'s rights & responsibilities or ! t]ms & conditions ( ! loan4 7#c7 ,additional c\nsel+ requirem5ts = c]ta9 in/itutions 7,a7 ,applicable ,in/itutions 7i7 ,in/itutions t may lose eligibility ,! ,secret>y %all require t an in/itution t has a cohort default rate t is equal to or great] ?an ! ?re%old p]c5tage specifi$ 9 section #dce7;a77#b77;,b7 = ! mo/ rec5t fiscal ye> = :i* data is available 7except 9 ! case ( an in/itution t meets ! crit]ia = a p>ticipation rate index appeal1 z describ$ 9 section #dce7;a77#h77 %all c]tify t ! in/itution has met ! c\nsel+ requirem5ts "u subsections 7b7 & 7l7 & "u ?is subsection1 includ+ ! requirem5ts describ$ 9 subp>agraph 7,b74 ,! c\nsel+ %all be provid$ 9 a simple & und]/&able mann] t includes me*anisms to *eck = compreh5sion4 7ii7 ,in/itutions t wi% to rega9 eligibility ,! ,secret>y %all require t an in/itution t loses eligibility "u "p ,b or "p ,d ( ?is title1 or "u any o!r program describ$ 9 ?is ,act1 9 accordance ) section #dce7;a77#b77;,b7 or section #ffh4bjf;a ( title #cd1 ,code ( ,f$]al ,regulations 7z 9 effect on ! day be=e ! date ( enactm5t ( ! ,sm>t] ,borr[+ ,act71 %all c]tify t ! in/itution has met ! c\nsel+ requirem5ts describ$ 9 subp>agraph 7,b7 z a condition ( rega9+ su* eligibility4 ,! c\nsel+ %all be provid$ 9 a simple & und]/&able mann] t includes me*anisms to *eck = compreh5sion4 7,b7 ,notification & ,c\nsel+ ,requirem5ts ,9 addition to ! c\nsel+ requir$ "u subsections 7b7 & 7l71 & any o!r requirem5ts "u ?is subsection1 an in/itution describ$ 9 subp>agraph 7,a7 %all1 = ea* fiscal ye> t ! in/itution has a cohort default rate t is equal to or great] ?an ! ?re%old p]c5tage specifi$ 9 section #dce7;a77#b77;,b71 include 9 ! in/itution's default prev5tion plan describ$ "u section #ffh4bag ( title #cd1 ,code ( ,f$]al ,regulations 7z 9 effect on ! day be=e ! date ( enactm5t ( ! ,sm>t] ,borr[+ ,act7 a specification t ! in/itution w-- 7i7 provide ea* /ud5t at ! in/itution ) a notification t ! in/itution is an at-risk in/itution t is subject to los+ eligibility 7or has lo/ eligibility1 z ! case may be7 = c]ta9 ,f$]al /ud5t aid programs due to ! in/itution's cohort default rate2 & 7ii7 provide ea* /ud5t at ! in/itution :o is receiv+ funds "u ?is title ) a c\nsel+ session1 ei!r 9 p]son or ov] ! telephone1 = ! purpose ( help+ ! /ud5t to develop a budget4 4 7d7 ,program ,p>ticipation ,agreem5ts ,section #dhg7;a7 is am5d$ by add+ at ! end ! foll[+3 7#cj7 ,! in/itution w provide ! ,secret>y ) any in=mation t ! ,secret>y reque/s 9 ord] to meet ! requirem5ts ( section #dce7n74 4 7e7 ,requir$ ,data ,any data t an in/itution ( high] education does n h access to & t is requir$ = compliance ) ?is section %all be provid$ or made available by ! ,dep>tm5t ( ,education1 or o!r ,f$]al ag5cies1 z appropriate4 #c4 ,explanation ( ! b5efits ( ,f$]al loans ,! ,secret>y ( ,education1 9 consultation ) ! heads ( relevant ,f$]al ag5cies1 %all prep>e & make available to eligible in/itutions1 z describ$ "u section #dhe7l77#b77,l77ii7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib7l77#b77,l77ii771 a writt5 explanation ( ! b5efits t are unique to ,f$]al /ud5t loans 7includ+ repaym5t plans1 loan =giv5ess1 & loan def]m5t7 & a description ( ! loan t]ms t borr[]s %\ld exam9e c>efully if consid]+ a private education loan4 #d4 ,longitud9al ,/udy ( ! ,effectiv5ess ( ,/ud5t ,loan ,c\nsel+ 7a7 ,9 ,g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,sm>t] ,borr[+ ,act1 ! ,secret>y ( ,education1 act+ ?r\gh ! ,director ( ! ,in/itute ( ,education ,sci5ces1 %all beg9 conduct+ a rigor\s longitud9al /udy ( ! impact & effectiv5ess ( /ud5t loan c\nsel+1 z provid$ 9 accordance ) subsections 7b71 7l71 & 7o7 ( section #dhe ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib7 & ?r\gh su* o!r means ( provid+ /ud5t loan c\nsel+ s]vices z ! ,secret>y may det]m9e4 ,! longitud9al /udy %all include in=mation ab\t /ud5t p]si/5ce1 degree atta9m5t1 program completion1 successful entry into /ud5t loan repaym5t1 cumulative borr[+ levels1 & su* o!r factors z ! ,secret>y may det]m9e4 7b7 ,int]im ,reports ,n lat] ?an #ah mon?s aft] ! comm5cem5t ( ! /udy describ$ "u ?is section1 & annually !reaft]1 ! ,secret>y %all evaluate ! progress ( ! /udy & report any %ort-t]m f9d+s to ! appropriate committees ( ,congress4 7c7 ,au?orization ( ,appropriations ,!re are au?oriz$ to be appropriat$ to c>ry out ?is section su* sums z may be necess>y = fiscal ye> #bjac & ea* ( ! #e succe$+ fiscal ye>s4 #e4 ,recomm5dations 7a7 ,national ,/ud5t ,loan ,data ,sy/em ,n lat] ?an #afj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,education & ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau %all prep>e & submit to ,congress a report conta9+ jo9t recomm5dations relat+ to ! inclusion ( private /ud5t loans into ! ,national ,/ud5t ,loan ,data ,sy/em e/abli%$ "u section #dhe;,b ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib;b74 7b7 ,recomm5dations = ,/ud5t ,loan ,c\nsel+ ,! ,secret>y ( ! ,treasury1 act+ ?r\gh ! ,presid5t's ,advisory ,c\ncil on ,f9ancial ,capability & ! ,f9ancial ,lit]acy & ,education ,commission 7,,flec71 %all prep>e & submit to ,congress a report conta9+ recomm5dations ab\t in=mation t %\ld be includ$ 9 f9ancial lit]acy c\nsel+ = fir/-"t /ud5t loan borr[]s4 #f4 ,consum] te/+ ( loan c\nsel+ & ma/] promissory note 7a7 ,e/abli%m5t ( ,consum] ,te/+ ,process ,n lat] ?an #c mon?s aft] ! date ( enactm5t ( ! ,sm>t] ,borr[+ ,act1 ! ,secret>y ( ,education %all e/abli% a process = consum] te/+ ! ma/] promissory note & onl9e entrance1 exit1 & int]im loan c\nsel+ tools1 includ+ onl9e tools t may be us$ dur+ ! c\nsel+ t is requir$ "u subsections 7b71 7l71 & 7o7 ( section #dhe ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib74 7b7 ,p>ticipants 9 ,consum] ,te/+ ,! consum] te/+ process describ$ 9 subsection 7a7 %all include-- 7#a7 repres5tatives ( /ud5ts 7includ+ l[-income /ud5ts1 fir/ g5]ation college /ud5ts1 adult /ud5ts1 & prospective /ud5ts72 7#b7 /ud5ts' families 7includ+ l[-income families1 families ) fir/ g5]ation college /ud5ts1 & families ) prospective /ud5ts72 7#c7 in/itutions ( high] education2 7#d7 po/second>y f9ancial aid (fic]s2 & 7#e7 nonpr(it consum] gr\ps4 7c7 ,duration ,! ,secret>y ( ,education %all ensure t ! consum] te/+ describ$ 9 ?is section la/s n long] ?an #f mon?s aft] ! process = consum] te/+ has be5 e/abli%$ "u subsection 7a74 7d7 ,use ( ,consum] ,te/+ ,results ,! ,secret>y ( ,education %all use ! results ( ! consum] te/+ 9 ! f9al developm5t ( onl9e entrance1 exit1 & int]im loan c\nsel+ tools1 includ+ onl9e tools t may be us$ dur+ ! c\nsel+ t is requir$ "u subsections 7b71 7l71 & 7o7 ( section #dhe ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib71 & ! f9al developm5t ( a revis$ ma/] promissory note4 7e7 ,report to ,congress ,n lat] ?an #c mon?s aft] ! date ! consum] te/+ concludes1 ! ,secret>y ( ,education %all submit to ,congress a report t conta9s-- 7#a7 ! f9al onl9e entrance1 exit1 & int]im loan c\nsel+ tools t ! ,dep>tm5t ( ,education plans to implem5t1 z describ$ "u subsection 7d71 & a revis$ ma/] promissory note2 & 7#b7 ! results ( ! consum] te/+ conduct$ "u ?is section4