The Know Before You Owe Federal Student Loan Act of 2025 requires colleges to provide more detailed financial counseling to student borrowers before they take out loans. Specifically, the bill mandates that schools give students clearer information about monthly loan payments relative to expected starting salary, their total debt load (including private loans), and alternatives to borrowing like scholarships and work-study programs. The legislation also requires students to manually confirm the exact dollar amount they want to borrow before loans are disbursed, and mandates that lenders send quarterly statements to borrowers during periods when they're not required to make payments, detailing their loan balance, interest accrued, and options for making voluntary payments. These requirements apply to all federal Direct Loan borrowers at participating institutions, with no specific funding or implementation timeline designated in the bill.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.