Enhanced Awareness Before Taking Federal Student Loans
New regulations aim to better inform students about the consequences of taking out student loans. They will increase awareness of debt levels, potential monthly repayments, and available options to reduce borrowing. Additionally, students will have to manually confirm the amount they wish to borrow and receive regular, clear information about their loans, even when not required to make payments.
Key points
Mandatory, expanded pre-loan counseling for each new student loan, including estimated monthly payments compared to future income.
Requirement for students to manually confirm the exact loan amount they wish to borrow before disbursement.
Regular, quarterly statements for borrowers, even when not repaying, detailing balance, interest, and early payment options.
Status:
Introduced
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