Us Congress 2023-2024 Regular Session

Us Congress House Bill HB4616 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	118THCONGRESS
3	3	1
4	4	STSESSION H. R. 4616
5	5	To modify requirements relating to financial aid disclosures.
6	6	IN THE HOUSE OF REPRESENTATIVES
7	7	JULY13, 2023
8	8	Mr. G
9	9	ROTHMANintroduced the following bill; which was referred to the
10	10	Committee on Education and the Workforce
11	11	A BILL
12	12	To modify requirements relating to financial aid disclosures.
13	13	Be it enacted by the Senate and House of Representa-1
14	14	tives of the United States of America in Congress assembled, 2
15	15	SECTION 1. SHORT TITLE. 3
16	16	This Act may be cited as the ‘‘Informed Student Bor-4
17	17	rowing Act of 2023’’. 5
18	18	SEC. 2. ENTRANCE COUNSELING FINANCIAL AID DISCLO-6
19	19	SURES. 7
20	20	Section 485(l) of the Higher Education Act of 1965 8
21	21	(20 U.S.C. 1092(l)) is amended— 9
22	22	(1) in the subsection heading, by striking ‘‘E
23	23	N-10
24	24	TRANCE’’; 11
25	25	(2) in paragraph (1)(A)— 12
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28	28	•HR 4616 IH
29	29	(A) in the matter preceding clause (i), by 1
30	30	striking ‘‘a disbursement to a first-time bor-2
31	31	rower’’ and inserting ‘‘the first disbursement to 3
32	32	a borrower in each award year’’; 4
33	33	(B) in the matter preceding subclause (I) 5
34	34	of paragraph clause (ii), by striking ‘‘may’’ and 6
35	35	inserting ‘‘shall’’; 7
36	36	(3) in paragraph (2)— 8
37	37	(A) by redesignating subparagraphs (A) 9
38	38	through (K) as subparagraphs (B) through (L); 10
39	39	(B) by inserting before subparagraph (B), 11
40	40	as so redesignated, the following: 12
41	41	‘‘(A) An explanation that the borrower will 13
42	42	need to affirmatively determine and manually 14
43	43	enter, in accordance with subsection (n), the 15
44	44	Federal loan amount that the borrower will bor-16
45	45	row (which may be equal to or less than the 17
46	46	Federal loan amount for which the borrower is 18
47	47	eligible) for each award year.’’; 19
48	48	(C) by striking subparagraph (G) and in-20
49	49	serting the following: 21
50	50	‘‘(G) Sample monthly repayment amounts, 22
51	51	under a standard repayment plan and under 23
52	52	the income-driven repayment plan that had the 24
53	53	highest enrollment in the previous year for bor-25
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56	56	•HR 4616 IH
57	57	rowers (excluding parent borrowers), based 1
58	58	on— 2
59	59	‘‘(i)(I) the median levels of indebted-3
60	60	ness, as appropriate, of— 4
61	61	‘‘(aa) undergraduate borrowers of 5
62	62	Federal Direct Stafford Loans or 6
63	63	Federal Unsubsidized Stafford Loans 7
64	64	who were enrolled in the institution; 8
65	65	‘‘(bb) graduate borrowers of Fed-9
66	66	eral Direct Stafford Loans, Federal 10
67	67	Unsubsidized Stafford Loans, or Fed-11
68	68	eral Direct Plus Loans who were en-12
69	69	rolled in the institution; and 13
70	70	‘‘(cc) parent borrowers of Federal 14
71	71	Direct Plus Loans made on behalf of 15
72	72	dependent students who were enrolled 16
73	73	at the institution; 17
74	74	‘‘(II) the median cumulative indebted-18
75	75	ness of borrowers of loans described in 19
76	76	subclause (I) in the same program as the 20
77	77	borrower at the same institution; and 21
78	78	‘‘(ii) the median annual earnings for 22
79	79	individuals who attended the institution, as 23
80	80	described in subparagraph (N).’’; and 24
81	81	(D) by adding at the end the following: 25
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84	84	•HR 4616 IH
85	85	‘‘(M) A statement that the borrower does 1
86	86	not have to accept the full amount of loans for 2
87	87	which the borrower is eligible, and an expla-3
88	88	nation that loan eligibility calculations are de-4
89	89	termined based on a cost of attendance that 5
90	90	may include expenses such as housing, food, 6
91	91	and transportation. 7
92	92	‘‘(N) The most recent College Scorecard 8
93	93	information (or information from a similar suc-9
94	94	cessor website) that shows the median annual 10
95	95	earnings of students who received Federal stu-11
96	96	dent aid and who are no longer enrolled at the 12
97	97	institution and are working, at the time that is 13
98	98	10 years after the date of such students’ entry 14
99	99	to the institution— 15
100	100	‘‘(i) for individuals who were enrolled 16
101	101	in the institution; and 17
102	102	‘‘(ii) if available through the College 18
103	103	Scorecard (or similar successor website), 19
104	104	for individuals who were enrolled in the 20
105	105	borrower’s undergraduate or graduate pro-21
106	106	gram. 22
107	107	‘‘(O) The percentage of borrowers who at-23
108	108	tended the institution and have completed or 24
109	109	are no longer enrolled that are in active repay-25
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112	112	•HR 4616 IH
113	113	ment (as compared to all borrowers who at-1
114	114	tended the institution and have completed or 2
115	115	are no longer enrolled). 3
116	116	‘‘(P) For undergraduate borrowers, the 4
117	117	completion rate of the institution, as available 5
118	118	through the College Scorecard (or similar suc-6
119	119	cessor website), for the most recent year for 7
120	120	which data are available. 8
121	121	‘‘(Q) A statement that— 9
122	122	‘‘(i) the statistics provided under this 10
123	123	paragraph are averages and median values 11
124	124	based on past years; 12
125	125	‘‘(ii) the borrower’s repayment 13
126	126	amounts, median earnings, and likelihood 14
127	127	of completion may vary from such statis-15
128	128	tics; and 16
129	129	‘‘(iii) as appropriate, parent borrowers 17
130	130	should be aware that information about 18
131	131	the median earnings, completion rate, and 19
132	132	percentage of borrowers in active repay-20
133	133	ment is based on data that excludes parent 21
134	134	borrowers. 22
135	135	‘‘(R) A statement in writing and in a form 23
136	136	the borrower may keep, of the annual percent-24
137	137	age rate applicable to the loan based on a 10 25
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140	140	•HR 4616 IH
141	141	year standard repayment plan, taking into ac-1
142	142	count— 2
143	143	‘‘(i) the amount of the loan; 3
144	144	‘‘(ii) the stated interest rate of the 4
145	145	loan; 5
146	146	‘‘(iii) the standard term for a loan of 6
147	147	the same type; 7
148	148	‘‘(iv) any fees or additional costs asso-8
149	149	ciated with the loan; and 9
150	150	‘‘(v) any capitalization of interest on 10
151	151	the loan.’’; and 11
152	152	(4) by adding at the end the following: 12
153	153	‘‘(3) I
154	154	NFORMATION FROM THE DEPARTMENT OF 13
155	155	EDUCATION.—The Secretary shall provide institu-14
156	156	tions with the data and statistics necessary to enable 15
157	157	institutions to carry out this subsection.’’. 16
158	158	SEC. 3. ANNUAL REQUIREMENT TO MANUALLY ENTER 17
159	159	LOAN AMOUNT. 18
160	160	Section 485 of the Higher Education Act of 1965 (20 19
161	161	U.S.C. 1092), as amended by section 2, is further amend-20
162	162	ed by adding at the end the following: 21
163	163	‘‘(n) A
164	164	NNUALREQUIREMENTTOMANUALLYENTER 22
165	165	L
166	166	OANAMOUNT.— 23
167	167	‘‘(1) I
168	168	N GENERAL.—In addition to the other re-24
169	169	quirements of this section and in accordance with 25
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172	172	•HR 4616 IH
173	173	paragraph (2), each eligible institution shall ensure 1
174	174	that, for each award year, each borrower enrolled in 2
175	175	the institution who receives a Federal Direct Loan 3
176	176	(other than a Federal Direct Consolidation Loan) 4
177	177	and each parent borrower who is borrowing a Fed-5
178	178	eral Direct PLUS Loan made on behalf of a student 6
179	179	who is enrolled in the institution, for such year, shall 7
180	180	manually enter, either in writing or through elec-8
181	181	tronic means, the exact dollar amount of Federal Di-9
182	182	rect Loan funding that such borrower desires to bor-10
183	183	row for such year. 11
184	184	‘‘(2) M
185	185	ETHOD.—The eligible institution shall 12
186	186	ensure that the borrower carries out the activity de-13
187	187	scribed in paragraph (1)— 14
188	188	‘‘(A) in the case of a student borrower, in 15
189	189	the course of the process used by the institution 16
190	190	for students to accept a student loan award; 17
191	191	‘‘(B) prior to the institution certifying a 18
192	192	Federal Direct Loan (other than a Federal Di-19
193	193	rect Consolidation Loan), including a Federal 20
194	194	Direct PLUS Loan made on behalf of a stu-21
195	195	dent, for disbursement to a borrower; and 22
196	196	‘‘(C) in the case of a student borrower, 23
197	197	after ensuring that the student has completed 24
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201	201	all of the counseling requirements under sub-1
202	202	section (l).’’. 2
203	203	SEC. 4. WORK STUDY. 3
204	204	Section 485 of the Higher Education Act of 1965 (20 4
205	205	U.S.C. 1092), as amended by sections 2 and 3, is further 5
206	206	amended by adding at the end the following: 6
207	207	‘‘(n) W
208	208	ORKSTUDY.—If an institution provides a stu-7
209	209	dent or a prospective student with a financial aid award 8
210	210	notification that includes work study, the institution shall 9
211	211	ensure that the notification includes an explanation that 10
212	212	any work study funds are not directly awarded to the stu-11
213	213	dent or institution, and such amounts must be earned 12
214	214	through the student’s completion of work over time.’’. 13
215	215	Æ
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