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Enhanced Student Loan Disclosures and Informed Borrowing Decisions

New rules aim to increase awareness among students and parents about federal loans. They introduce a requirement to manually confirm loan amounts and provide more data on graduate earnings and repayment rates to help make better financial decisions.
Key points
Students and parents will be required to manually confirm the exact federal loan amount they wish to borrow each year, rather than automatically accepting the full eligible amount.
Colleges must provide more detailed loan information, including sample monthly repayment amounts, data on median earnings of graduates from that institution and program, and loan repayment percentages.
Work-study program notifications must clearly explain that these funds must be earned through work and are not directly awarded.
A requirement to disclose the annual percentage rate (APR) of the loan, including all fees and interest capitalization, is introduced to increase cost transparency.
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Expired
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Additional Information
Print number: 118_HR_4616
Sponsor: Rep. Grothman, Glenn [R-WI-6]
Process start date: 2023-07-13
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Informed Student Borrowing Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_4616.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-07-13.

What are the main provisions?

Key points include:

  • Students and parents will be required to manually confirm the exact federal loan amount they wish to borrow each year, rather than automatically accepting the full eligible amount.
  • Colleges must provide more detailed loan information, including sample monthly repayment amounts, data on median earnings of graduates from that institution and program, and loan repayment percentages.
  • Work-study program notifications must clearly explain that these funds must be earned through work and are not directly awarded.
  • A requirement to disclose the annual percentage rate (APR) of the loan, including all fees and interest capitalization, is introduced to increase cost transparency.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Grothman, Glenn [R-WI-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and the Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Education