I 
118TH CONGRESS 
1ST SESSION H. R. 4616 
To modify requirements relating to financial aid disclosures. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2023 
Mr. GROTHMAN introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To modify requirements relating to financial aid disclosures. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Informed Student Bor-
rowing Act of 2023’’. 
SEC. 2. ENTRANCE COUNSELING FINANCIAL AID DISCLO-
SURES. 
Section 485(l) of the Higher Education Act of 1965 
(20 U.S.C. 1092(l)) is amended— 
(1) in the subsection heading, by striking ‘‘EN-
TRANCE’’; 
(2) in paragraph (1)(A)— 
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(A) in the matter preceding clause (i), by 
striking ‘‘a disbursement to a first-time bor-
rower’’ and inserting ‘‘the first disbursement to 
a borrower in each award year’’; 
(B) in the matter preceding subclause (I) 
of paragraph clause (ii), by striking ‘‘may’’ and 
inserting ‘‘shall’’; 
(3) in paragraph (2)— 
(A) by redesignating subparagraphs (A) 
through (K) as subparagraphs (B) through (L); 
(B) by inserting before subparagraph (B), 
as so redesignated, the following: 
‘‘(A) 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 bor-
row (which may be equal to or less than the 
Federal loan amount for which the borrower is 
eligible) for each award year.’’; 
(C) by striking subparagraph (G) and in-
serting the following: 
‘‘(G) 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 bor-
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rowers (excluding parent borrowers), based 
on— 
‘‘(i)(I) the median levels of indebted-
ness, as appropriate, of— 
‘‘(aa) undergraduate borrowers of 
Federal Direct Stafford Loans or 
Federal Unsubsidized Stafford Loans 
who were enrolled in the institution; 
‘‘(bb) graduate borrowers of Fed-
eral Direct Stafford Loans, Federal 
Unsubsidized Stafford Loans, or Fed-
eral Direct Plus Loans who were en-
rolled in the institution; and 
‘‘(cc) parent borrowers of Federal 
Direct Plus Loans made on behalf of 
dependent students who were enrolled 
at the institution; 
‘‘(II) the median cumulative indebted-
ness of borrowers of loans described in 
subclause (I) in the same program as the 
borrower at the same institution; and 
‘‘(ii) the median annual earnings for 
individuals who attended the institution, as 
described in subparagraph (N).’’; and 
(D) by adding at the end the following: 
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‘‘(M) A statement that the borrower does 
not have to accept the full amount of loans for 
which the borrower is eligible, and an expla-
nation that loan eligibility calculations are de-
termined based on a cost of attendance that 
may include expenses such as housing, food, 
and transportation. 
‘‘(N) The most recent College Scorecard 
information (or information from a similar suc-
cessor website) that shows the median annual 
earnings of students who received Federal stu-
dent 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— 
‘‘(i) for individuals who were enrolled 
in the institution; and 
‘‘(ii) if available through the College 
Scorecard (or similar successor website), 
for individuals who were enrolled in the 
borrower’s undergraduate or graduate pro-
gram. 
‘‘(O) The percentage of borrowers who at-
tended the institution and have completed or 
are no longer enrolled that are in active repay-
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ment (as compared to all borrowers who at-
tended the institution and have completed or 
are no longer enrolled). 
‘‘(P) For undergraduate borrowers, the 
completion rate of the institution, as available 
through the College Scorecard (or similar suc-
cessor website), for the most recent year for 
which data are available. 
‘‘(Q) A statement that— 
‘‘(i) the statistics provided under this 
paragraph are averages and median values 
based on past years; 
‘‘(ii) 
the 
borrower’s 
repayment 
amounts, median earnings, and likelihood 
of completion may vary from such statis-
tics; and 
‘‘(iii) as appropriate, parent borrowers 
should be aware that information about 
the median earnings, completion rate, and 
percentage of borrowers in active repay-
ment is based on data that excludes parent 
borrowers. 
‘‘(R) A statement in writing and in a form 
the borrower may keep, of the annual percent-
age rate applicable to the loan based on a 10 
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year standard repayment plan, taking into ac-
count— 
‘‘(i) the amount of the loan; 
‘‘(ii) the stated interest rate of the 
loan; 
‘‘(iii) the standard term for a loan of 
the same type; 
‘‘(iv) any fees or additional costs asso-
ciated with the loan; and 
‘‘(v) any capitalization of interest on 
the loan.’’; and 
(4) by adding at the end the following: 
‘‘(3) INFORMATION FROM THE DEPARTMENT OF 
EDUCATION.—The Secretary shall provide institu-
tions with the data and statistics necessary to enable 
institutions to carry out this subsection.’’. 
SEC. 3. ANNUAL REQUIREMENT TO MANUALLY ENTER 
LOAN AMOUNT. 
Section 485 of the Higher Education Act of 1965 (20 
U.S.C. 1092), as amended by section 2, is further amend-
ed by adding at the end the following: 
‘‘(n) ANNUAL REQUIREMENT TO MANUALLY ENTER 
LOAN AMOUNT.— 
‘‘(1) IN GENERAL.—In addition to the other re-
quirements of this section and in accordance with 
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paragraph (2), each eligible institution shall ensure 
that, for each award year, each borrower enrolled in 
the institution who receives a Federal Direct Loan 
(other than a Federal Direct Consolidation Loan) 
and each parent borrower who is borrowing a Fed-
eral Direct PLUS Loan made on behalf of a student 
who is enrolled in the institution, for such year, shall 
manually enter, either in writing or through elec-
tronic means, the exact dollar amount of Federal Di-
rect Loan funding that such borrower desires to bor-
row for such year. 
‘‘(2) METHOD.—The eligible institution shall 
ensure that the borrower carries out the activity de-
scribed in paragraph (1)— 
‘‘(A) in the case of a student borrower, in 
the course of the process used by the institution 
for students to accept a student loan award; 
‘‘(B) prior to the institution certifying a 
Federal Direct Loan (other than a Federal Di-
rect Consolidation Loan), including a Federal 
Direct PLUS Loan made on behalf of a stu-
dent, for disbursement to a borrower; and 
‘‘(C) in the case of a student borrower, 
after ensuring that the student has completed 
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all of the counseling requirements under sub-
section (l).’’. 
SEC. 4. WORK STUDY. 
Section 485 of the Higher Education Act of 1965 (20 
U.S.C. 1092), as amended by sections 2 and 3, is further 
amended by adding at the end the following: 
‘‘(n) WORK STUDY.—If an institution provides a stu-
dent or a prospective student with a financial aid award 
notification that includes work study, the institution shall 
ensure that the notification includes an explanation that 
any work study funds are not directly awarded to the stu-
dent or institution, and such amounts must be earned 
through the student’s completion of work over time.’’. 
Æ 
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