Sec. 301. Counseling and financial aid disclosures
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/bill/118/s/1972/is/section-301A 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 ; Entrance in paragraph (1)(A)— in the matter preceding clause (i), by striking a disbursement to a first-time borrower and inserting the first disbursement to a borrower in each award year ; and in the matter preceding subclause
(I)of paragraph clause (ii), by striking may and inserting shall ; in paragraph (2)— by redesignating subparagraphs
(A)through
(K)as subparagraphs
(B)through (L); by inserting before subparagraph (B), as so redesignated, the following: An explanation that the borrower will need to affirmatively determine and manually enter, in accordance with subsection (n), the Federal loan amount that the borrower will borrow (which may be equal to or less than the Federal loan amount for which the borrower is eligible) for each award year. ; by striking subparagraph
(G)and inserting the following: Sample monthly repayment amounts, under a standard repayment plan and under the income-driven repayment plan that had the highest enrollment in the previous year for borrowers (excluding parent borrowers), based on— the median levels of indebtedness, as appropriate, of— undergraduate borrowers of Federal Direct Stafford Loans or Federal Unsubsidized Stafford Loans who were enrolled in the institution; graduate borrowers of Federal Direct Stafford Loans, Federal Unsubsidized Stafford Loans, or Federal Direct Plus Loans who were enrolled in the institution; and parent borrowers of Federal Direct Plus Loans made on behalf of dependent students who were enrolled at the institution; the median cumulative indebtedness of borrowers of loans described in subclause
(I)in the same program as the borrower at the same institution; and the median annual earnings for individuals who attended the institution, as described in subparagraph (N). ; and by adding at the end the following: A statement that the borrower does not have to accept the full amount of loans for which the borrower is eligible, and an explanation that loan eligibility calculations are determined based on a cost of attendance that may include expenses such as housing, food, and transportation. The most recent College Scorecard information (or information from a similar successor website) that shows the median annual earnings of students who received Federal student aid and who are no longer enrolled at the institution and are working, at the time that is 10 years after the date of such students' entry to the institution— for individuals who were enrolled in the institution; and if available through the College Scorecard (or similar successor website), for individuals who were enrolled in the borrower's undergraduate or graduate program. The percentage of borrowers who attended the institution and have completed or are no longer enrolled that are in active repayment (as compared to all borrowers who attended the institution and have completed or are no longer enrolled). For undergraduate borrowers, the completion rate of the institution, as available through the College Scorecard (or similar successor website), for the most recent year for which data are available. A statement that— the statistics provided under this paragraph are averages and median values based on past years; the borrower's repayment amounts, median earnings, and likelihood of completion may vary from such statistics; and as appropriate, parent borrowers should be aware that information about the median earnings, completion rate, and percentage of borrowers in active repayment is based on data that excludes parent borrowers. A statement in writing and in a form the borrower may keep, of the annual percentage rate applicable to the loan based on a 10-year standard repayment plan, taking into account— the amount of the loan; the stated interest rate of the loan; the standard term for a loan of the same type; any fees or additional costs associated with the loan; and any capitalization of interest on the loan. ; and by adding at the end the following: The Secretary shall provide institutions with the data and statistics necessary to enable institutions to carry out this subsection. .
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Sec. 301
Counseling and financial aid disclosures
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