This bill would change how federal student loans are explained and accepted. Before each new loan is paid out, schools must give clearer counseling that shows what your monthly payment could be, compared to your likely take-home pay and typical living costs for your field of study. It must also add up all your expected student debt to finish your program. The counseling would warn about borrowing more than you need, explain how a higher debt-to-income ratio can make repayment harder, offer ways to borrow less (like scholarships, cutting costs, or work-study), and stress graduating on time to avoid extra debt. After counseling, you would have to manually type in the exact dollar amount you want to borrow before the school certifies your loan for payment .

When you’re not required to make payments—like while in school, deferment, or forbearance—your lender or servicer would have to send you a simple quarterly statement. It would show your original loan amounts, current balance, interest rate, how much you’ve paid (including interest and fees), and how to make voluntary payments. It would also explain that unpaid interest can get added to your balance later, raising total costs, and that even small payments now can reduce interest over time .

• Who is affected: Students taking out federal loans, colleges that certify those loans, and lenders/servicers who manage them .
• What changes:
  • More detailed pre-loan counseling for each new loan or award year, with realistic payment and income comparisons and tips to borrow less .
  • Students must confirm the exact loan amount by entering the dollar figure themselves before funds are certified .
  • Quarterly statements during non-payment periods with clear info on balances, interest, and how small payments can help .
• When it happens: Counseling before the first disbursement of each new loan (or each award year if multiple loans), and statements sent every quarter when payments aren’t required .