‘‘(i) IN
GENERAL.—With respect to 
each borrower of a loan made under this 
part who selects a new repayment plan in 
accordance with the notice received under 
subparagraph (B) and who continues to be 
delinquent on such loan for a period de-
scribed in clause (ii), the Secretary shall, 
as soon as practicable after such period, 
carry out the procedures described in sub-
paragraph (C) for the borrower’s loans 
made under this part, if such procedures 
would result in lower monthly repayment 
amounts on such loan. 
‘‘(ii) DESCRIPTION OF PERIOD.—The 
duration of the period described in clause 
(i) shall be the amount of time that the 
Secretary determines is sufficient to indi-
cate that the borrower may benefit from 
repaying such loan under a new repayment 
plan, but in no case shall such period be 
less than 60 days. 
‘‘(E) OPT-OUT.—A borrower of a loan 
made under this part shall have the right to opt 
out of the procedures under this paragraph. 
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‘‘(F) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph. 
‘‘(10) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE RE-
HABILITATING DEFAULTED LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.— 
‘‘(i) IN GENERAL.—In the case of any 
borrower who is rehabilitating a loan made 
under this part pursuant to section 
428F(a), the Secretary may obtain such 
information as is reasonably necessary re-
garding the income and family size of the 
borrower (and the borrower’s spouse, if ap-
plicable). 
‘‘(ii) AVAILABILITY OF RETURNS AND 
RETURN INFORMATION.—Returns and re-
turn information (as defined in section 
6103 of the Internal Revenue Code of 
1986) may be obtained under this subpara-
graph only to the extent authorized by sec-
tion 6103(l)(13) of such Code. 
‘‘(B) 
BORROWER
NOTIFICATION.—Not 
later than 30 days after a borrower makes the 
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6th payment required for the loan rehabilitation 
described in subparagraph (A), the Secretary 
shall notify the borrower of the process under 
subparagraph (C) with respect to such loan. 
‘‘(C) SECRETARY’S
AUTOMATIC
ENROLL-
MENT.—With respect to each borrower who has 
made the 9th payment required for the loan re-
habilitation described in subparagraph (A) and 
is eligible for the income-based repayment plan 
under section 493C(c), the Secretary shall, as 
soon as practicable after such payment, provide 
the borrower with the income-based repayment 
plan. 
‘‘(D) OPT-OUT.—A borrower of a loan 
made under this part shall have the right to opt 
out of the procedures under this paragraph. 
‘‘(E) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall— 
(1) take effect as soon as the Secretary of Edu-
cation determines practicable after the Secretary fi-
nalizes the procedures under section 107; and 
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(2) apply to all borrowers of loans made under 
part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.). 
SEC. 305. SEPARATING JOINT CONSOLIDATION LOANS. 
(a) IN
GENERAL.—Section 455(g) (20 U.S.C. 
1087e(g)), as amended by section 104, is further amended 
by adding at the end the following: 
‘‘(3) 
SEPARATING
JOINT
CONSOLIDATION 
LOANS.— 
‘‘(A) IN GENERAL.—A married couple, or 
2 individuals who were previously a married 
couple, and who received a joint consolidation 
loan as such married couple under subpara-
graph (C) of section 428C(a)(3) (as such sub-
paragraph was in effect on or before June 30, 
2006), may apply to the Secretary for each in-
dividual borrower in the married couple (or pre-
viously married couple) to receive a separate 
Federal Direct Consolidation Loan under this 
part— 
‘‘(i) that shall— 
‘‘(I) unless the Secretary receives 
notice of an agreement described in 
subclause (II)(aa), be equal to the 
sum of— 
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‘‘(aa) the unpaid principal 
and accrued unpaid interest of 
the percentage of the joint con-
solidation loan that, as of the day 
before such joint consolidation 
loan was made, was attributable 
to the loans of the individual bor-
rower for whom such separate 
consolidation loan is being made; 
and 
‘‘(bb) any other loans de-
scribed in section 428C(a)(4) 
that such individual borrower se-
lects for consolidation under this 
part; or 
‘‘(II) be equal to the sum of— 
‘‘(aa) the unpaid principal 
and accrued unpaid interest of 
the percentage of the joint con-
solidation loan that, as of the 
date of application under this 
paragraph, the married couple 
(or previously married couple) 
agrees shall be considered attrib-
utable to the loans of the indi-
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vidual borrower for whom such 
separate consolidation loan is 
being made; and 
‘‘(bb) any other loans de-
scribed in section 428C(a)(4) 
that such individual borrower se-
lects for consolidation under this 
part; 
‘‘(ii) the proceeds of which shall be 
paid by the Secretary to the holder or 
holders— 
‘‘(I) of the joint consolidation 
loan for the purpose of discharging 
the liability on the percentage of such 
joint consolidation loan described in 
subclause (I)(aa) or (II)(aa) of clause 
(i); and 
‘‘(II) of the loans selected for 
consolidation under subclause (I)(bb) 
or (II)(bb) of clause (i) for the pur-
pose of discharging the liability on 
such loans; 
‘‘(iii) except as otherwise provided in 
this paragraph, that has the same terms 
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couple (or previously married couple) shall 
jointly apply under such subparagraph. 
‘‘(ii) SEPARATE
APPLICATION.—An 
individual borrower in a married couple (or 
previously married couple) may apply for a 
separate consolidation loan under subpara-
graph (A) separately and without regard to 
whether or when the other individual bor-
rower in the married couple (or previously 
married couple) applies under such sub-
paragraph, in a case in which— 
‘‘(I) the individual borrower has 
experienced from the other individual 
borrower— 
‘‘(aa) domestic violence (as 
defined in section 40002(a) of 
the Violence Against Women Act 
of 1994 (42 U.S.C. 13925(a))); 
‘‘(bb) economic abuse (in-
cluding behaviors that control 
such borrower’s ability to ac-
quire, use, and maintain access 
to money, credit, or the joint fi-
nancial obligations of both bor-
rowers); or 
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‘‘(cc) other exceptional cir-
cumstances, as determined by the 
Secretary; and 
‘‘(II) the Secretary determines 
that authorizing each individual bor-
rower to apply separately under sub-
paragraph (A) would be in the best 
fiscal interests of the Federal Govern-
ment, including by reducing the risk 
of delinquency or default. 
‘‘(C) BORROWER
ELIGIBILITY.—Notwith-
standing section 428C(a)(3)(A), the Secretary 
shall provide a consolidation loan under this 
part to each borrower who— 
‘‘(i) applies for such loan under sub-
paragraph (A); and 
‘‘(ii) meets the requirements of sub-
paragraphs (A) and (B). 
‘‘(D) 
SPECIAL
RULE.—Notwithstanding 
any other provision of this title, an individual 
who has a joint consolidation loan and wishes 
for the Secretary to discharge the loans due to 
total and permanent disability pursuant to sec-
tion 437(a), shall first separate the joint con-
solidation loan in accordance with this section 
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before the Secretary may discharge any portion 
of the loan.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
428C(a)(3)(B)(i)(V) (20 U.S.C. 1078–3(3)(B)(i)(V)) is 
amended— 
(1) by striking ‘‘or’’ at the end of item (bb); 
(2) by striking the period at the end of item 
(cc) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(dd) for the purpose of sepa-
rating a joint consolidation loan into 2 
separate Federal Direct Consolidation 
Loans under section 455(g)(3).’’. 
SEC. 306. REMOVING THE COLLECTION COST REQUIRE-
MENT. 
(a) 
REMOVAL
OF
REQUIREMENT.—Section 
484A(b)(1) (20 U.S.C. 1091a(b)(1)) is amended by strik-
ing ‘‘shall be required to pay, in addition to other charges 
specified in this title, reasonable collection costs’’ and in-
serting ‘‘shall not be required to pay collection costs’’. 
(b) 
REPAYMENT
AFTER
DEFAULT.—Section 
455(d)(6) (20 U.S.C. 1087e(d)(6)), as redesignated under 
section 103(b), is amended by striking ‘‘to—’’ and all that 
follows through the period at the end and inserting ‘‘to 
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repay the loan pursuant to an income-based repayment 
plan under section 493C(c).’’. 
TITLE IV—IMPROVING LOAN IN-
FORMATION 
AND 
COUN-
SELING 
SEC. 401. STUDENT LOAN CONTRACT; SIMPLIFYING LOAN 
DISCLOSURES. 
(a) STUDENT LOAN CONTRACT.—Section 455 (20 
U.S.C. 1087e), as amended by section 202, is further 
amended by inserting after subsection (b) the following: 
‘‘(c) STUDENT LOAN CONTRACT; SIMPLIFYING LOAN 
DISCLOSURES.— 
‘‘(1) STUDENT LOAN CONTRACT.— 
‘‘(A) IN GENERAL.—Any master promis-
sory 
note 
form 
described 
in 
section 
432(m)(1)(D) that is developed or used for cov-
ered loans shall be referred to as a ‘student 
loan contract’. 
‘‘(B) CLARIFICATION
ON
USE.—Notwith-
standing section 432(m)(1)(D)(i), each student 
loan contract for a covered loan shall— 
‘‘(i) not be entered into by a student 
unless the student has completed all re-
quired counseling related to such loan, in-
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cluding counseling required under section 
485(l); 
‘‘(ii) be signed by the student entering 
such student loan contract after completion 
of such counseling; 
‘‘(iii) be used only for the academic 
year for which the initial loans are made 
under the contract and shall be valid for 
additional loans within an academic year; 
and 
‘‘(iv) include options for the student 
to enter both the student’s current contact 
information and permanent contact infor-
mation that is likely to remain valid upon 
the student’s exit from the institution. 
‘‘(C) COVERED LOAN.— 
‘‘(i) IN GENERAL.—In this subsection, 
the term ‘covered loan’ means a loan made 
under this part on or after the effective 
date of the Affordable Loans for Any Stu-
dent Act, except with respect to a borrower 
described in clause (ii). 
‘‘(ii) EXCEPTION.—A borrower is de-
scribed in this clause if the loan made 
under this part on or after the effective 
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date of the Affordable Loans for Any Stu-
dent Act with respect to such borrower is 
for the 2020–2021 academic year and the 
borrower has already taken out a loan 
under this part (other than a Federal Di-
rect Consolidation Loan) for such aca-
demic year (including any such loan for at-
tendance at another institution from which 
the student transferred or in which the 
student had previously enrolled). 
‘‘(2) LOAN
DISCLOSURES.—For loans made 
under this part for periods of enrollment beginning 
on or after the effective date of the Affordable 
Loans for Any Student Act, the Secretary shall take 
such steps as are necessary to streamline the stu-
dent loan disclosure requirements under this Act. 
The Secretary shall ensure that information required 
to be disclosed to a student who is applying for, re-
ceiving, or preparing to repay a loan under this part 
shall be consumer-tested and delivered in a manner 
that— 
‘‘(A) reduces and simplifies the paperwork 
students are required to complete; 
‘‘(B) limits the number of times a student 
is presented with disclosures by incorporating 
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the streamlined disclosures into required stu-
dent loan counseling under section 485(l), the 
student loan contract under this subsection, or 
both; and 
‘‘(C) is effective in helping the student un-
derstand the student’s rights and obligations as 
a Federal student loan borrower. 
‘‘(3) ANNUAL
LOAN
ACCEPTANCE.—Prior to 
making the first disbursement of a covered loan 
(other than a Federal Direct Consolidation Loan) to 
a borrower for an academic year, the eligible institu-
tion shall ensure that the borrower— 
‘‘(A) has completed the applicable coun-
seling under paragraph (2) or (3) of section 
485(l); and 
‘‘(B) after completing such counseling, ac-
cepts the loan for such academic year by— 
‘‘(i) signing and returning to the insti-
tution the student loan contract described 
in section 455(c)(1) that affirmatively 
states that the borrower accepts the loan; 
or 
‘‘(ii) electronically signing an elec-
tronic version of such student loan con-
tract, which may be done through the on-
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line counseling tool in accordance with sec-
tion 485(n)(1)(B).’’. 
(b) CONFORMING AMENDMENT.—Section 487(a)(7) 
(20 U.S.C. 1094(a)(7)) is amended by striking ‘‘section 
485’’ and inserting ‘‘sections 455(c)(3) and 485’’. 
SEC. 402. ANNUAL AND PRE-LOAN INFORMATION AND 
COUNSELING REQUIREMENTS. 
Section 485(l) (20 U.S.C. 1092(l)) is amended to 
read as follows: 
‘‘(l) ANNUAL STUDENT LOAN COUNSELING
FOR 
BORROWERS.— 
‘‘(1) ANNUAL COUNSELING REQUIREMENT FOR 
INSTITUTIONS.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall ensure that each individual for whom 
the institution has knowledge that the student 
has accepted, or will accept, 1 or more student 
loans under part D (including any such loans 
for attendance at another institution from 
which the student transferred or in which the 
student had previously enrolled, other than a 
Federal Direct Consolidation Loan) for an aca-
demic year, receives comprehensive information 
on the terms and conditions of such loans and 
the responsibilities the individual has with re-
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spect to such loans. Such information shall be 
provided, for each academic year for which the 
individual receives such loans, in a simple, un-
derstandable, and consumer-friendly manner— 
‘‘(i) during a counseling session con-
ducted in person; 
‘‘(ii) online, with the individual ac-
knowledging receipt of the information; or 
‘‘(iii) through the use of the online 
counseling tool described in subsection 
(n)(1)(B). 
‘‘(B) USE OF INTERACTIVE PROGRAMS.— 
In the case of institutions not using the online 
counseling 
tool 
described 
in 
subsection 
(n)(1)(B), the Secretary shall require such in-
stitutions to carry out the requirements of sub-
paragraph (A) through the use of interactive 
programs, during an annual counseling session 
that is in-person or online, that test the individ-
ual’s understanding of the terms and conditions 
of the loan awarded to the individual, using 
simple and understandable language and clear 
formatting. 
‘‘(2) ANNUAL
LOAN
COUNSELING
FOR
BOR-
ROWERS RECEIVING LOANS MADE UNDER PART D 
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(OTHER THAN PARENT PLUS LOANS).—The informa-
tion to be provided under paragraph (1)(A) to a bor-
rower of a loan made under part D (other than a 
Federal Direct PLUS Loan made on behalf of a de-
pendent student) shall include the following: 
‘‘(A) A notification that some students 
may qualify for other financial aid that does not 
need to be repaid, and an explanation that the 
borrower should consider accepting any such 
grant, scholarship, military tuition assistance, 
veterans benefits, Federal or State work-study 
jobs, or other programs for which the borrower 
is eligible, prior to accepting student loans. 
‘‘(B) Information on the total outstanding 
student loan debt that the institution is aware 
that the student has borrowed, disaggregated 
by type of loan, including loans issued under 
this title, private education loans (as defined in 
section 140 of the Truth in Lending Act (15 
U.S.C. 1650)) that the institution has certified 
in accordance with section 487(a)(28), and edu-
cation loans from the institution, as applicable. 
‘‘(C) The student’s estimated monthly pay-
ment amounts for loans made, insured, or guar-
anteed under this title based on— 
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‘‘(i) the fixed repayment plan de-
scribed under section 493E for loans 
issued under part B or D; and 
‘‘(ii) the income-based repayment plan 
under section 493C(c), utilizing individual-
ized data applicable to the borrower as de-
scribed in paragraph (4). 
‘‘(D) A statement that the monthly 
amount described in subparagraph (C) does not 
include any amounts that the student may be 
required to repay for non-Federal education 
loans, including private education loans or insti-
tutional education loans. 
‘‘(E) An explanation of the use of the stu-
dent loan contract referred to in section 455(c). 
‘‘(F) A recommendation to the borrower to 
exhaust the borrower’s Federal student loan op-
tions prior to taking out private education 
loans, an explanation that Federal student 
loans typically offer better terms and conditions 
than private education loans, an explanation 
that Federal student loans offer consumer pro-
tections typically not available in the private 
education loan market, an explanation of treat-
ment of loans made under part D and private 
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education loans in bankruptcy, and an expla-
nation that if a borrower decides to take out a 
private education loan— 
‘‘(i) the borrower has the ability to se-
lect a private educational lender of the bor-
rower’s choice; 
‘‘(ii) the proposed private education 
loan may impact the borrower’s potential 
eligibility for other financial assistance, in-
cluding Federal financial assistance under 
this title; and 
‘‘(iii) the borrower has a right— 
‘‘(I) to accept the terms of the 
private education loan within 30 cal-
endar days following the date on 
which the application for such loan is 
approved and the borrower receives 
the required disclosure documents, 
pursuant to section 128(e) of the 
Truth in Lending Act (15 U.S.C. 
1638(e)); and 
‘‘(II) to cancel such loan within 3 
business days of the date on which the 
loan is consummated, pursuant to sec-
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‘‘(K) The contact information for the fi-
nancial aid office, or other appropriate office, at 
the institution that the borrower may contact if 
the borrower has any questions about the bor-
rower’s rights and responsibilities or the terms 
and conditions of the loan. 
‘‘(L) An explanation that the student has 
the right to annually request a copy of the cred-
it report of the student from a consumer re-
porting agency pursuant to section 612(a) of 
the Fair Credit Reporting Act (15 U.S.C. 
1681j(a)). 
‘‘(M) For a first-time borrower, in addition 
to all the information described in subpara-
graphs (A) through (L)— 
‘‘(i) the anticipated balance on the 
loan for which the borrower is receiving 
counseling under this subsection; and 
‘‘(ii) information on the annual and 
aggregate loan limits for Federal Direct 
Stafford Loans and Federal Direct Unsub-
sidized Stafford Loans as it pertains to the 
loan for which the borrower is receiving 
counseling, and a statement that such ag-
gregate borrowing limit may change based 
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on the borrower’s student status (whether 
undergraduate or graduate) or if there is a 
change in the borrower’s dependency sta-
tus. 
‘‘(N) For a borrower with an outstanding 
balance of principal or interest due on a loan 
made under this title, including loans made 
under part B, in addition to all the information 
described in subparagraphs (A) through (L), 
the percentage of the total aggregate borrowing 
limit that the student has reached, as of the 
date of the counseling, 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. 
‘‘(3) BORROWERS
RECEIVING
PARENT
PLUS 
LOANS FOR DEPENDENT STUDENTS.—The informa-
tion to be provided under paragraph (1)(A) to a bor-
rower of a Federal Direct PLUS Loan made on be-
half of a dependent student shall include the fol-
lowing: 
‘‘(A) A notification that some students 
may qualify for other financial aid and an ex-
planation that the student for whom the bor-
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rower is taking out the loan should consider ac-
cepting any such grant, scholarship, military 
tuition assistance, veterans benefits, Federal or 
State work-study jobs, or other programs for 
which the student for whom the borrower is 
taking out the loan is eligible, prior to bor-
rowing any Federal Direct PLUS Loan on be-
half of a dependent student. 
‘‘(B) The information described in sub-
paragraphs (B) through (L) of paragraph (2), 
as applicable. 
‘‘(C) The option of the borrower to pay the 
interest on the loan while the loan is under 
pause payment. 
‘‘(D) An explanation that the borrower has 
the options to prepay each loan, pay each loan 
on a shorter schedule, and change repayment 
plans. 
‘‘(E) For each Federal Direct PLUS Loan 
made on behalf of a dependent student for 
which the borrower is receiving counseling 
under this subsection, the contact information 
for the loan servicer of the loan and a link to 
such servicer’s website. 
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‘‘(F) For a first-time borrower of such 
loan— 
‘‘(i) the anticipated balance on the 
loan for which the borrower is receiving 
counseling under this paragraph; and 
‘‘(ii) the estimated monthly payment 
amounts for such loan based on— 
‘‘(I) the fixed repayment plan de-
scribed in section 493E for the loan; 
and 
‘‘(II) the income-based repay-
ment plan under section 493C(c), uti-
lizing individualized data applicable to 
the borrower as described in para-
graph (4). 
‘‘(G) For a borrower undergoing coun-
seling that already has an outstanding balance 
of principal or interest due on a Federal Direct 
PLUS Loan made on behalf of a dependent 
student— 
‘‘(i) the anticipated balance of all 
Federal Direct PLUS Loans held by the 
borrower (including the one for which 
counseling is provided); and 
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‘‘(ii) the estimated monthly payment 
amounts for all such loans based on— 
‘‘(I) the fixed repayment plan de-
scribed in section 493E for loans 
issued under part B or D; and 
‘‘(II) the income-based repay-
ment plan under section 493C(c), uti-
lizing individualized data applicable to 
the borrower as described in para-
graph (4). 
‘‘(4) ESTIMATED REPAYMENT INFORMATION.— 
In providing estimated payments for income-based 
repayment plans under section 493C(c) for purposes 
of this section, the Secretary shall develop and im-
plement a database to generate repayment estimate 
for borrowers by— 
‘‘(A) enabling each institution to enter rel-
evant loan, program cost, and average indebted-
ness at graduation information electronically; 
‘‘(B) integrating applicable data on Fed-
eral loans made, insured, or guaranteed under 
this title from the National Student Loan Data 
System or a successor system; 
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‘‘(C) integrating available data on occupa-
tional earnings reasonably related to the stu-
dent’s program of study; 
‘‘(D) using a hypothetical family size of 1; 
and 
‘‘(E) providing a borrower the option to 
adjust these data elements and observe the cor-
responding change in estimated monthly pay-
ment amounts.’’. 
SEC. 403. EXIT COUNSELING. 
Section 485(b) (20 U.S.C. 1092(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), 
striking ‘‘through financial aid offices or 
otherwise’’ and inserting ‘‘through the use 
of an interactive program, during an exit 
counseling session that is in-person or on-
line, or through the use of the online coun-
seling 
tool 
described 
in 
subsection 
(n)(1)(A)’’; 
(ii) 
by 
redesignating 
clauses 
(i) 
through (ix) as clauses (v) through (xiii), 
respectively; 
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(iii) by inserting before clause (v), as 
redesignated by clause (ii), the following: 
‘‘(i) a summary of the outstanding 
balance of principal and interest due on 
the loans made to the borrower under part 
B, D, or E; 
‘‘(ii) an explanation of the grace pe-
riod preceding repayment and the expected 
date that the borrower will enter repay-
ment; 
‘‘(iii) an explanation that the borrower 
has the option to pay any interest that has 
accrued while the borrower was in school 
or that may accrue during the grace period 
preceding repayment or during an author-
ized period of pause payment; 
‘‘(iv) an explanation that the borrower 
may be approached during the repayment 
process by third-party student debt relief 
companies, that the borrower should use 
caution in any such dealings, and that the 
typical services provided by these compa-
nies are already offered to borrowers free 
of charge through the Department or its 
contractors;’’; 
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(iv) in clause (v), as redesignated by 
clause (ii)— 
(I) by striking ‘‘sample informa-
tion showing the average’’ and insert-
ing ‘‘information, based on the bor-
rower’s outstanding balance described 
in clause (i), showing the borrower’s’’; 
and 
(II) by striking ‘‘of each plan’’ 
and inserting ‘‘of the fixed repayment 
plan described in section 493E and 
the 
income-based 
repayment 
plan 
under section 493C(c), and any other 
repayment plan for which each loan 
may be eligible’’; 
(v) in clause (x), as redesignated by 
clause (ii)— 
(I) by inserting ‘‘decreased credit 
score,’’ after ‘‘credit reports,’’; and 
(II) by inserting ‘‘reduced ability 
to rent or purchase a home or car, po-
tential difficulty in securing employ-
ment,’’ after ‘‘Federal law,’’; 
(vi) in the matter preceding subclause 
(I) of clause (xi), as redesignated by clause 
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(ii), by striking ‘‘consolidation loan under 
section 428C or a’’; 
(vii) in each of clauses (xii) and (xiii), 
as redesignated by clause (ii), by striking 
‘‘and’’ at the end; and 
(viii) by adding at the end the fol-
lowing: 
‘‘(xiv) for each of the borrower’s loans 
made under part B, D, or E for which the 
borrower is receiving counseling under this 
subsection, the contact information for the 
loan servicer of the loan and a link to such 
servicer’s website; and 
‘‘(xv) an explanation that an indi-
vidual has a right to annually request a 
disclosure of information collected by a 
consumer reporting agency pursuant to 
section 612(a) of the Fair Credit Report-
ing Act (15 U.S.C. 1681j(a)).’’; and 
(B) in subparagraph (B), by striking ‘‘in 
writing’’ and inserting ‘‘online or in writing, ex-
cept that in the case of an institution using the 
online counseling tool described in subsection 
(n)(1)(A), the Secretary shall attempt to pro-
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vide such information to the student in the 
manner described in subsection (n)(3)(C)’’; and 
(2) in paragraph (2)(C), by inserting ‘‘, such as 
the online counseling tool described in subsection 
(n)(1)(A),’’ after ‘‘electronic means’’. 
SEC. 404. ONLINE COUNSELING TOOLS. 
Section 485 (20 U.S.C. 1092) is amended by adding 
at the end the following: 
‘‘(n) ONLINE COUNSELING TOOLS.— 
‘‘(1) IN GENERAL.—Beginning not later than 1 
year after the date of enactment of the Affordable 
Loans for Any Student Act, the Secretary shall 
maintain— 
‘‘(A) an online counseling tool that pro-
vides the exit counseling required under sub-
section (b) and meets the applicable require-
ments of this subsection; and 
‘‘(B) an online counseling tool that pro-
vides the annual counseling required under sub-
section (l), enables a borrower to electronically 
sign and accept the borrower’s student loan 
contract for the upcoming academic year under 
section 455(c)(3)(B)(ii), and meets the applica-
ble requirements of this subsection. 
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‘‘(2) REQUIREMENTS OF TOOLS.—In maintain-
ing the online counseling tools described in para-
graph (1), the Secretary shall ensure that each such 
tool, and its underlying content— 
‘‘(A) are consumer tested, in consultation 
with other relevant Federal agencies, students, 
borrowers, institutions of higher education, sec-
ondary school and postsecondary counselors, 
and consumer advocacy organizations, to ensure 
that the tool is effective in helping individuals 
understand their rights and obligations with re-
spect to borrowing a loan made under part D; 
‘‘(B) are understandable to borrowers of 
loans made under part D; 
‘‘(C) freely available to all eligible institu-
tions; and 
‘‘(D) integrate applicable loan data from 
the National Student Loan Data System or a 
successor system, including data regarding 
loans made, insured, or guaranteed under this 
title and data regarding private education 
loans, pursuant to section 485B(i). 
‘‘(3) RECORD OF COUNSELING COMPLETION.— 
The Secretary shall— 
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‘‘(A) use each online counseling tool de-
scribed in paragraph (1) to keep a record of 
which individuals have received counseling using 
the tool and notify the applicable institutions of 
the individual’s completion of such counseling; 
‘‘(B) in the case of a borrower who re-
ceives annual counseling for a loan made under 
part D using the tool described in paragraph 
(1)(B)— 
‘‘(i) enable the borrower to accept and 
electronically sign the student loan con-
tract 
as 
required 
under 
section 
455(c)(3)(B)(ii) and notify the applicable 
institutions that the individual completed 
the counseling and electronically signed the 
contract; and 
‘‘(ii) if the borrower chooses not to 
sign the student loan contract through the 
online counseling— 
‘‘(I) 
inform 
the 
borrower, 
through the online counseling tool, of 
the date by when the borrower should 
accept and sign the student loan con-
tract for which the borrower has re-
ceived such counseling; and 
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‘‘(II) notify the applicable insti-
tution that the borrower completed 
the counseling but did not sign the 
student loan contract; and 
‘‘(C) in the case of a borrower described in 
subsection (b)(1)(B) at an institution that uses 
the online counseling tool described in para-
graph (1)(A) of this subsection, attempt to pro-
vide the information described in subsection 
(b)(1)(A) to the borrower through such tool. 
‘‘(o) LONGITUDINAL STUDY ON THE EFFECTIVENESS 
OF STUDENT LOAN COUNSELING.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of the Affordable Loans for 
Any Student Act, the Secretary, acting through the 
Director of the Institute of Education Sciences, shall 
begin conducting a rigorous, longitudinal study of 
the impact and effectiveness of the student loan 
counseling provided under section 485(n). 
‘‘(2) CONTENTS.— 
‘‘(A) BORROWER INFORMATION.—The lon-
gitudinal study carried out under paragraph (1) 
shall include borrower information, in the ag-
gregate and disaggregated by race and eth-
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nicity, gender, income quartile, and status as an 
individual with a disability, on— 
‘‘(i) student persistence; 
‘‘(ii) degree attainment; 
‘‘(iii) program completion; 
‘‘(iv) successfully maintaining current 
student loan repayment status following 
the student’s exit from the institution; 
‘‘(v) cumulative borrowing levels; and 
‘‘(vi) such other factors as the Sec-
retary may determine. 
‘‘(B) 
EXCEPTION.—The 
disaggregation 
under subparagraph (A) shall not be required 
in a case in which the number of borrowers in 
a category is insufficient to yield statistically re-
liable information or the results would reveal 
personally identifiable information about an in-
dividual borrower. 
‘‘(3) INTERIM
REPORTS.—Not later than 18 
months after the commencement of the study under 
paragraph (1), and annually thereafter, the Sec-
retary shall evaluate the progress of the study and 
report any short-term findings to the authorizing 
committees.’’. 
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SEC. 405. PRIVATE EDUCATION LOAN CERTIFICATION AND 
INFORMATION. 
(a) AMENDMENT TO THE HIGHER EDUCATION ACT 
OF 1965.— 
(1) IN GENERAL.—Section 487(a) (20 U.S.C. 
1094(a)) is amended by striking paragraph (28) and 
inserting the following: 
‘‘(28)(A) The institution shall— 
‘‘(i) upon the request of a private edu-
cational lender, acting in connection with an ap-
plication initiated by a borrower for a private 
education loan in accordance with section 
128(e)(3) of the Truth in Lending Act, provide 
certification to such private educational lend-
er— 
‘‘(I) that the student who initiated the 
application for the private education loan, 
or on whose behalf the application was ini-
tiated, is enrolled or is scheduled to enroll 
at the institution; 
‘‘(II) of such student’s cost of attend-
ance at the institution as determined under 
part F; and 
‘‘(III) of the difference between— 
‘‘(aa) the cost of attendance at 
the institution; and 
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‘‘(bb) the student’s estimated fi-
nancial assistance received under this 
title and other assistance known to 
the institution, as applicable; and 
‘‘(ii) provide the certification described in 
clause (i), or notify the private educational 
lender that the institution has received the re-
quest for certification and will need additional 
time to comply with the certification request— 
‘‘(I) within 15 business days of receipt 
of such certification request; and 
‘‘(II) only after the institution has 
completed the activities described in sub-
paragraph (B). 
‘‘(B) The institution shall, upon receipt of a 
certification request described in subparagraph 
(A)(i), and prior to providing such certification— 
‘‘(i) determine whether the student who 
initiated the application for the private edu-
cation loan, or on whose behalf the application 
was initiated, has applied for and exhausted the 
Federal financial assistance available to such 
student under this title and inform the student 
accordingly; and 
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‘‘(ii) provide the borrower whose loan ap-
plication has prompted the certification request 
by a private education lender, as described in 
subparagraph (A)(i), with the following infor-
mation and disclosures: 
‘‘(I) If the borrower has not yet ex-
hausted the financial assistance available 
to the borrower under this title, the 
amount of additional Federal student as-
sistance for which the borrower is eligible 
and the potential advantages of Federal 
loans under this title, including disclosure 
of— 
‘‘(aa) the fixed interest rates and 
pause payment processes; 
‘‘(bb) the option for and terms of 
income-based repayment, loan forgive-
ness programs, and additional protec-
tions; and 
‘‘(cc) the higher student loan lim-
its for dependent students whose par-
ents are not eligible for a Federal Di-
rect PLUS Loan. 
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‘‘(II) The borrower’s ability to select a 
private educational lender of the bor-
rower’s choice. 
‘‘(III) The impact of a proposed pri-
vate education loan on the borrower’s po-
tential eligibility for other financial assist-
ance, including Federal financial assistance 
under this title. 
‘‘(IV) The borrower’s right to accept 
or reject a private education loan within 
the 30-day period following a private edu-
cational lender’s approval of a borrower’s 
application and about a borrower’s 3-day 
right to cancel period under section 
128(e)(7) of the Truth in Lending Act (15 
U.S.C. 1650(e)(7)). 
‘‘(C) For purposes of this paragraph, the terms 
‘private educational lender’ and ‘private education 
loan’ have the meanings given such terms in section 
140 of the Truth in Lending Act (15 U.S.C. 
1650).’’. 
(2) NATIONAL STUDENT LOAN DATA SYSTEM.— 
Section 485B (20 U.S.C. 1092b) is amended— 
(A) in subsection (a), by striking ‘‘and 
loans made under parts D and E’’ and insert-
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101 
coordination with the Secretary of Edu-
cation, shall promulgate regulations re-
garding the private education loan infor-
mation required to be submitted under 
clause (i), including the content, method, 
and format for submission. The informa-
tion required for inclusion in the National 
Student Loan Data System shall include, 
at a minimum— 
‘‘(I) information identifying the 
borrower, including the borrower’s 
name and social security number; 
‘‘(II) the name of the institution 
of higher education that has certified 
the private education loan; 
‘‘(III) the name of the lender; 
‘‘(IV) the amount of the private 
education loan; 
‘‘(V) the term, or other enroll-
ment period, for which the private 
education loan is issued; and 
‘‘(VI) whether a cosigner was re-
quired as a condition of the private 
education loan.’’. 
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