,,ii #aafth ,,congress #ast ,session ,s4 #hhg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bg1 #bjai,mr4 ,grassley 7for himself1 ,ms4 ,smith1 and ,ms4 ,ernst7 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 loans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,know ,before ,you ,owe ,federal ,student ,loan ,act of #bjai4 #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#a77;,a7-- 7,a7 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 subparagraph 7,g7 and inserting the following3 7,g7 ,an estimate of the borrower's monthly payment amount compared to the borrower's estimated monthly income after taxes1 after living expenses 7using ,consumer ,expenditure ,survey data from the ,bureau of ,labor ,statistics71 after estimated health insurance costs1 and after any other relevant expenses1 based on-- 7i7 the best available data on starting wages for the borrower's program of study1 if available2 and 7ii7 the estimated total student loan debt of the borrower1 including-- 7,i7 ,federal debt2 7,,ii7 to the best of the institution's knowledge1 private loan debt already incurred2 and 7,,iii7 the estimated future debt required to complete the program of study4 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 ,a warning that the higher the borrower's debt-to-income ratio is1 the more difficulty the borrower is likely to experience in repaying the loan4 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 what course load is necessary to graduate on time1 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 7,a7 ,in addition to the other requirements of this subsection and in accordance with subparagraph 7,b71 each eligible institution shall 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 7,b7 ,the eligible institution shall ensure that the student carries out the activity described in subparagraph 7,a7-- 7i7 in the course of the process used by the institution for students to accept a student loan award2 7ii7 prior to the institution 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 student72 and 7iii7 after ensuring that the student has completed all of the pre-loan counseling requirements under this subsection4 4 #c4 ,required periodic disclosures during periods when loan payments are not required ,section #dcc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhc7 is amended-- 7#a7 by redesignating subsection 7f7 as subsection 7g72 and 7#b7 by inserting after subsection 7e7 the following3 7f7 ,required periodic disclosures during periods when loan payments are not required ,during any period of time when a borrower of one or more loans1 made1 insured1 or guaranteed under this part or part ,d is not required to make a payment to an eligible lender on the borrower's loan from that eligible lender1 such eligible lender shall provide such borrower with a quarterly statement that includes1 in simple and understandable terms-- 7#a7 the original principal amount of each of the borrower's loans1 and the original principal amount of those loans in the aggregate2 7#b7 the borrower's current balance1 as of the time of the statement1 as applicable2 7#c7 the interest rate on each loan2 7#d7 the total amount the borrower has paid in interest on each loan2 7#e7 the aggregate amount the borrower has paid for each loan1 including the amount the borrower has paid in interest1 the amount the borrower has paid in fees1 and the amount the borrower has paid against the balance2 7#f7 the lender's or loan servicer's address1 toll-free phone number1 and webpage for payment and billing error purposes1 including information about how a borrower can make voluntary payments when a loan is not in repayment status2 7#g7 an explanation-- 7,a7 that the borrower has the option to pay the interest that accrues on each loan while the borrower is a student at an institution of higher education or during a period of deferment or forbearance1 if applicable2 and 7,b7 if the borrower does not pay such interest while attending an institution or during a period of deferment or forbearance1 any accumulated interest on the loan will be capitalized when the loan goes into repayment1 resulting in more interest being paid over the life of the loan2 7#h7 the amount of interest that has accumulated since the last statement based on the typical installment time period and the aggregate interest accrued to date2 and 7#i7 an explanation that making even small payments of any unspecified amount while the borrower is a student at an institution of higher education1 or during a period of deferment or forbearance1 if applicable1 can help to offset interest accrual over the life of the loan4 4 #d4 ,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