Sec. 2. Pre-loan counseling and certification of loan amount
462 words·~2 min read·
/bill/116/s/887/is/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 485(l) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(l) ) is amended— in the subsection heading, by striking and inserting Entrance Counseling ; Pre-Loan Counseling in paragraph (1)(A)— in the matter preceding clause (i), by striking a disbursement to a first-time borrower of a loan and inserting the first disbursement of each new loan (or the first disbursement in each award year if more than one new loan is obtained in the same award year) ; and in clause (ii)(I), by striking an entrance counseling and inserting a counseling ; in paragraph (2)— by striking subparagraph
(G)and inserting the following: An estimate of the borrower's monthly payment amount compared to the borrower's estimated monthly income after taxes, after living expenses (using Consumer Expenditure Survey data from the Bureau of Labor Statistics), after estimated health insurance costs, and after any other relevant expenses, based on— the best available data on starting wages for the borrower's program of study, if available; and the estimated total student loan debt of the borrower, including— Federal debt; to the best of the institution's knowledge, private loan debt already incurred; and the estimated future debt required to complete the program of study. ; and by adding at the end the following: A statement that the borrower should borrow the minimum amount necessary to cover expenses and that the borrower does not have to accept the full amount of loans for which the borrower is eligible. A warning that the higher the borrower’s debt-to-income ratio is, the more difficulty the borrower is likely to experience in repaying the loan. Options for reducing borrowing through scholarships, reduced expenses, work-study, or other work opportunities. An explanation of the importance of graduating on time to avoid additional borrowing, what course load is necessary to graduate on time, and information on how adding an additional year of study impacts total indebtedness. ; and by adding at the end the following: In addition to the other requirements of this subsection and in accordance with subparagraph (B), each eligible institution shall ensure that the student manually enter, either in writing or through electronic means, the exact dollar amount of Federal Direct Loan funding under part D that such student desires to borrow. The eligible institution shall ensure that the student carries out the activity described in subparagraph (A)— in the course of the process used by the institution for students to accept a student loan award; prior to the institution certifying a Federal Direct Loan under part D for disbursement to a student (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student); and after ensuring that the student has completed all of the pre-loan counseling requirements under this subsection. .
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 2
Pre-loan counseling and certification of loan amount
Cites 1Cited by 0 across 0 sources