Sec. 3. Annual loan counseling
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Section 485 of the Higher Education Act of 1965 ( 20 U.S.C. 1092 ) is amended by adding at the end the following: Each institution of higher education participating in any program under this title shall annually provide each student described in paragraph
(3)with a written notification (which may be in electronic form) inviting the student to attend financial counseling described in paragraph (2). The counseling described in paragraph
(1)may be provided in person or via telephone or electronic form, and shall include each of the following: Information on each student loan that the institution is aware that the student has borrowed, including Federal loans, private loans, and loans from the institution. The total amount of the cumulative student loan debt from the loans described in subparagraph (A). The student's estimated monthly repayment amount for Federal loans, which shall include— estimates based on each applicable debt bracket for the fixed repayment plan described under section 493E; and an additional estimate based on the income-based repayment plan described under section 493C(f), calculated on the basis of a hypothetical income and a family size of 1. A statement that the monthly amount described in subparagraph
(C)does not include any amounts that the student may be required to repay for private or institutional loans. For each Federal loan described in subparagraph (A), the interest rate for the loan, as of the date of the counseling, and a statement that the interest rate on student loans may vary based on when the loan was borrowed and other factors. A notification that some students may qualify for a Federal Pell Grant. The percentage of the total aggregate borrowing limit that the student has reached, as of the date of the counseling, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans, and a statement that such aggregate borrowing limit may change based on the borrower's student status (whether undergraduate or graduate) or if there is a change in the borrower's dependency status. Any information, including financial planning resources, that the institution determines is appropriate to include in the counseling. A statement that the information provided through the counseling contains only estimates and information relevant to the student to the best of the institution's knowledge. The notification described in paragraph
(1)shall be provided to each student— who is enrolled in the institution; and who is a student for which the institution has knowledge that the student has 1 or more student loans, including any such loans from another institution that a student may have transferred from or been previously enrolled in. .
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Sec. 3
Annual loan counseling
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