Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB1970 Compare Versions

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Old	New	Differences
1	1	II
2	2	118THCONGRESS
3	3	1
4	4	STSESSION S. 1970
5	5	To modify requirements relating to financial aid disclosures.
6	6	IN THE SENATE OF THE UNITED STATES
7	7	JUNE14, 2023
8	8	Mr. D
9	9	AINES(for himself, Mr. CASSIDY, Mrs. BLACKBURN, and Mrs. CAPITO)
10	10	introduced the following bill; which was read twice and referred to the
11	11	Committee on Health, Education, Labor, and Pensions
12	12	A BILL
13	13	To modify requirements relating to financial aid disclosures.
14	14	Be it enacted by the Senate and House of Representa-1
15	15	tives of the United States of America in Congress assembled, 2
16	16	SECTION 1. SHORT TITLE. 3
17	17	This Act may be cited as the ‘‘Informed Student Bor-4
18	18	rowing Act of 2023’’. 5
19	19	SEC. 2. ENTRANCE COUNSELING FINANCIAL AID DISCLO-6
20	20	SURES. 7
21	21	Section 485(l) of the Higher Education Act of 1965 8
22	22	(20 U.S.C. 1092(l)) is amended— 9
23	23	(1) in the subsection heading, by striking ‘‘E
24	24	N-10
25	25	TRANCE’’; 11
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28	28	•S 1970 IS
29	29	(2) in paragraph (1)(A)— 1
30	30	(A) in the matter preceding clause (i), by 2
31	31	striking ‘‘a disbursement to a first-time bor-3
32	32	rower’’ and inserting ‘‘the first disbursement to 4
33	33	a borrower in each award year’’; and 5
34	34	(B) in the matter preceding subclause (I) 6
35	35	of paragraph clause (ii), by striking ‘‘may’’ and 7
36	36	inserting ‘‘shall’’; 8
37	37	(3) in paragraph (2)— 9
38	38	(A) by redesignating subparagraphs (A) 10
39	39	through (K) as subparagraphs (B) through (L); 11
40	40	(B) by inserting before subparagraph (B), 12
41	41	as so redesignated, the following: 13
42	42	‘‘(A) An explanation that the borrower will 14
43	43	need to affirmatively determine and manually 15
44	44	enter, in accordance with subsection (n), the 16
45	45	Federal loan amount that the borrower will bor-17
46	46	row (which may be equal to or less than the 18
47	47	Federal loan amount for which the borrower is 19
48	48	eligible) for each award year.’’; 20
49	49	(C) by striking subparagraph (G) and in-21
50	50	serting the following: 22
51	51	‘‘(G) Sample monthly repayment amounts, 23
52	52	under a standard repayment plan and under 24
53	53	the income-driven repayment plan that had the 25
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56	56	•S 1970 IS
57	57	highest enrollment in the previous year for bor-1
58	58	rowers (excluding parent borrowers), based 2
59	59	on— 3
60	60	‘‘(i)(I) the median levels of indebted-4
61	61	ness, as appropriate, of— 5
62	62	‘‘(aa) undergraduate borrowers of 6
63	63	Federal Direct Stafford Loans or 7
64	64	Federal Unsubsidized Stafford Loans 8
65	65	who were enrolled in the institution; 9
66	66	‘‘(bb) graduate borrowers of Fed-10
67	67	eral Direct Stafford Loans, Federal 11
68	68	Unsubsidized Stafford Loans, or Fed-12
69	69	eral Direct Plus Loans who were en-13
70	70	rolled in the institution; and 14
71	71	‘‘(cc) parent borrowers of Federal 15
72	72	Direct Plus Loans made on behalf of 16
73	73	dependent students who were enrolled 17
74	74	at the institution; 18
75	75	‘‘(II) the median cumulative indebted-19
76	76	ness of borrowers of loans described in 20
77	77	subclause (I) in the same program as the 21
78	78	borrower at the same institution; and 22
79	79	‘‘(ii) the median annual earnings for 23
80	80	individuals who attended the institution, as 24
81	81	described in subparagraph (N).’’; and 25
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84	84	•S 1970 IS
85	85	(D) by adding at the end the following: 1
86	86	‘‘(M) A statement that the borrower does 2
87	87	not have to accept the full amount of loans for 3
88	88	which the borrower is eligible, and an expla-4
89	89	nation that loan eligibility calculations are de-5
90	90	termined based on a cost of attendance that 6
91	91	may include expenses such as housing, food, 7
92	92	and transportation. 8
93	93	‘‘(N) The most recent College Scorecard 9
94	94	information (or information from a similar suc-10
95	95	cessor website) that shows the median annual 11
96	96	earnings of students who received Federal stu-12
97	97	dent aid and who are no longer enrolled at the 13
98	98	institution and are working, at the time that is 14
99	99	10 years after the date of such students’ entry 15
100	100	to the institution— 16
101	101	‘‘(i) for individuals who were enrolled 17
102	102	in the institution; and 18
103	103	‘‘(ii) if available through the College 19
104	104	Scorecard (or similar successor website), 20
105	105	for individuals who were enrolled in the 21
106	106	borrower’s undergraduate or graduate pro-22
107	107	gram. 23
108	108	‘‘(O) The percentage of borrowers who at-24
109	109	tended the institution and have completed or 25
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112	112	•S 1970 IS
113	113	are no longer enrolled that are in active repay-1
114	114	ment (as compared to all borrowers who at-2
115	115	tended the institution and have completed or 3
116	116	are no longer enrolled). 4
117	117	‘‘(P) For undergraduate borrowers, the 5
118	118	completion rate of the institution, as available 6
119	119	through the College Scorecard (or similar suc-7
120	120	cessor website), for the most recent year for 8
121	121	which data are available. 9
122	122	‘‘(Q) A statement that— 10
123	123	‘‘(i) the statistics provided under this 11
124	124	paragraph are averages and median values 12
125	125	based on past years; 13
126	126	‘‘(ii) the borrower’s repayment 14
127	127	amounts, median earnings, and likelihood 15
128	128	of completion may vary from such statis-16
129	129	tics; and 17
130	130	‘‘(iii) as appropriate, parent borrowers 18
131	131	should be aware that information about 19
132	132	the median earnings, completion rate, and 20
133	133	percentage of borrowers in active repay-21
134	134	ment is based on data that excludes parent 22
135	135	borrowers. 23
136	136	‘‘(R) A statement in writing and in a form 24
137	137	the borrower may keep, of the annual percent-25
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140	140	•S 1970 IS
141	141	age rate applicable to the loan based on a 10 1
142	142	year standard repayment plan, taking into ac-2
143	143	count— 3
144	144	‘‘(i) the amount of the loan; 4
145	145	‘‘(ii) the stated interest rate of the 5
146	146	loan; 6
147	147	‘‘(iii) the standard term for a loan of 7
148	148	the same type; 8
149	149	‘‘(iv) any fees or additional costs asso-9
150	150	ciated with the loan; and 10
151	151	‘‘(v) any capitalization of interest on 11
152	152	the loan.’’; and 12
153	153	(4) by adding at the end the following: 13
154	154	‘‘(3) I
155	155	NFORMATION FROM THE DEPARTMENT OF 14
156	156	EDUCATION.—The Secretary shall provide institu-15
157	157	tions with the data and statistics necessary to enable 16
158	158	institutions to carry out this subsection.’’. 17
159	159	SEC. 3. ANNUAL REQUIREMENT TO MANUALLY ENTER 18
160	160	LOAN AMOUNT. 19
161	161	Section 485 of the Higher Education Act of 1965 (20 20
162	162	U.S.C. 1092), as amended by section 2, is further amend-21
163	163	ed by adding at the end the following: 22
164	164	‘‘(n) A
165	165	NNUALREQUIREMENTTOMANUALLYENTER 23
166	166	L
167	167	OANAMOUNT.— 24
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170	170	•S 1970 IS
171	171	‘‘(1) IN GENERAL.—In addition to the other re-1
172	172	quirements of this section and in accordance with 2
173	173	paragraph (2), each eligible institution shall ensure 3
174	174	that, for each award year, each borrower enrolled in 4
175	175	the institution who receives a Federal Direct Loan 5
176	176	(other than a Federal Direct Consolidation Loan) 6
177	177	and each parent borrower who is borrowing a Fed-7
178	178	eral Direct PLUS Loan made on behalf of a student 8
179	179	who is enrolled in the institution, for such year, shall 9
180	180	manually enter, either in writing or through elec-10
181	181	tronic means, the exact dollar amount of Federal Di-11
182	182	rect Loan funding that such borrower desires to bor-12
183	183	row for such year. 13
184	184	‘‘(2) M
185	185	ETHOD.—The eligible institution shall 14
186	186	ensure that the borrower carries out the activity de-15
187	187	scribed in paragraph (1)— 16
188	188	‘‘(A) in the case of a student borrower, in 17
189	189	the course of the process used by the institution 18
190	190	for students to accept a student loan award; 19
191	191	‘‘(B) prior to the institution certifying a 20
192	192	Federal Direct Loan (other than a Federal Di-21
193	193	rect Consolidation Loan), including a Federal 22
194	194	Direct PLUS Loan made on behalf of a stu-23
195	195	dent, for disbursement to a borrower; and 24
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199	199	‘‘(C) in the case of a student borrower, 1
200	200	after ensuring that the student has completed 2
201	201	all of the counseling requirements under sub-3
202	202	section (l).’’. 4
203	203	SEC. 4. WORK STUDY. 5
204	204	Section 485 of the Higher Education Act of 1965 (20 6
205	205	U.S.C. 1092), as amended by sections 2 and 3, is further 7
206	206	amended by adding at the end the following: 8
207	207	‘‘(n) W
208	208	ORKSTUDY.—If an institution provides a stu-9
209	209	dent or a prospective student with a financial aid award 10
210	210	notification that includes work study, the institution shall 11
211	211	ensure that the notification includes an explanation that 12
212	212	any work study funds are not directly awarded to the stu-13
213	213	dent or institution, and such amounts must be earned 14
214	214	through the student’s completion of work over time.’’. 15
215	215	Æ
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