Bill · H.R. 3298· House(119-HR-3298)
Know Before You Owe Federal Student Loan Act of 2025
- Introduced
- 5/8/2025
- Last activity
- 5/8/2025 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Mariannette Miller-Meeks
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Know Before You Owe Federal Student Loan Act of 2025" changes how student loan counseling is handled. It replaces "Entrance Counseling" with "Pre-Loan Counseling," which must now happen for the first disbursement of every new loan. Borrowers will receive detailed estimates of monthly payments compared to their expected income and warnings about debt-to-income ratios. Students must also manually enter the exact dollar amount they wish to borrow. Additionally, lenders must provide quarterly statements to borrowers during periods when payments are not required.
Yes· 3 of 10
Would students be better off under this?+8
Significantly improves financial literacy and transparency for student borrowers.
Would people in their twenties and thirties be better off under this?+7
Provides critical financial education and transparency to young adults entering student debt.
Does this give people more protection from unfair business practices?+7
Increases transparency and disclosure for student loan borrowers regarding their debt and payment obligations.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Better Financial Awareness: Borrowers will receive an estimate of monthly payments compared to estimated monthly income after taxes, living expenses, and health insurance (Section 2).
- Debt Reduction Guidance: The bill requires a statement that borrowers should only take the minimum amount necessary and lists options for reducing borrowing, such as scholarships or work-study (Section 2).
- Academic Planning: Borrowers will be educated on the importance of graduating on time to avoid extra debt and how adding a year of study affects their total debt (Section 2).
- Prevention of Over-Borrowing: Students must manually enter the exact dollar amount they want to borrow, ensuring they are aware of the specific funding they are requesting (Section 2).
- Ongoing Transparency: Borrowers will receive quarterly statements during periods when payments aren't required, detailing their current balance, interest rates, and total interest paid (Section 3).
- Interest Management: The bill requires explanations on how making small voluntary payments during deferment or forbearance can help offset interest accrual (Section 3).
Potential Negative Impacts for People
- Increased Frequency of Requirements: Borrowers must now undergo counseling for the first disbursement of each new loan, or each award year if multiple new loans are taken, rather than just as first-time borrowers (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+8Good For Young Adults+7Good For Low Income Households+6Good For Middle Class Households+5
- Economy And Finance
- Improves Consumer Protection+7Improves Fiscal Responsibility+5Reduces National Debt+2
- Governance And Ideology
- Improves Government Transparency+6
- Education And Technology
- Improves College Affordability+4
- Social Issues And Justice
- Improves Poverty Reduction+3
- 5/8/2025
- Referred to the House Committee on Education and Workforce.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.