I 
112TH CONGRESS 
2D SESSION 
H. R. 6273 
To amend the Truth in Lending Act and the Higher Education Act of 
1965 to require certain creditors to obtain certifications from institutions 
of higher education, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 2, 2012 
Mr. POLIS (for himself, Mr. BISHOP of New York, and Ms. SCHWARTZ) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and the Workforce, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Truth in Lending Act and the Higher Edu-
cation Act of 1965 to require certain creditors to obtain 
certifications from institutions of higher education, and 
for other purposes. 
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 ‘‘Know Before You Owe 
Private Student Loan Act of 2012’’. 
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SEC. 2. AMENDMENTS TO THE TRUTH IN LENDING ACT. 
(a) IN GENERAL.—Section 128(e) of the Truth in 
Lending Act (15 U.S.C. 1638(e)) is amended— 
(1) by striking paragraph (3) and inserting the 
following: 
‘‘(3) 
INSTITUTIONAL
CERTIFICATION
RE-
QUIRED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), before a creditor may issue 
any funds with respect to an extension of credit 
described in this subsection, the creditor shall 
obtain from the relevant institution of higher 
education where such loan is to be used for a 
student, such institution’s certification of— 
‘‘(i) the enrollment status of the stu-
dent; 
‘‘(ii) the student’s cost of attendance 
at the institution as determined by the in-
stitution under part F of title IV of the 
Higher Education Act of 1965; and 
‘‘(iii) the difference between— 
‘‘(I) such cost of attendance; and 
‘‘(II) the student’s estimated fi-
nancial assistance, including such as-
sistance received under title IV of the 
Higher Education Act of 1965 and 
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other financial assistance known to 
the institution, as applicable. 
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), a creditor may issue funds with 
respect to an extension of credit described in 
this subsection without obtaining from the rel-
evant institution of higher education such insti-
tution’s certification if such institution fails to 
provide within 15 business days of the credi-
tor’s request for such certification— 
‘‘(i) the requested certification; or 
‘‘(ii) notification that the institution 
has received the request for certification 
and will need additional time to comply 
with the certification request. 
‘‘(C) LOANS
DISBURSED
WITHOUT
CER-
TIFICATION.—If a creditor issues funds without 
obtaining a certification, as described in sub-
paragraph (B), such creditor shall report the 
issuance of such funds in a manner determined 
by the Director of the Consumer Financial Pro-
tection Bureau.’’; 
(2) by redesignating paragraphs (9), (10), and 
(11) as paragraphs (10), (11), and (12), respec-
tively; and 
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(3) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) PROVISION OF INFORMATION.— 
‘‘(A) PROVISION OF INFORMATION TO STU-
DENTS.— 
‘‘(i) LOAN
STATEMENT.—A creditor 
that issues any funds with respect to an 
extension of credit described in this sub-
section shall send loan statements, where 
such loan is to be used for a student, to 
borrowers of such funds not less than once 
every 3 months during the time that such 
student is enrolled at an institution of 
higher education. 
‘‘(ii) CONTENTS
OF
LOAN
STATE-
MENT.—Each 
statement 
described 
in 
clause (i) shall— 
‘‘(I) report the borrower’s total 
remaining debt to the creditor, includ-
ing accrued but unpaid interest and 
capitalized interest; 
‘‘(II) report any debt increases 
since the last statement; and 
‘‘(III) list the current interest 
rate for each loan. 
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‘‘(B) NOTIFICATION OF LOANS DISBURSED 
WITHOUT
CERTIFICATION.—On or before the 
date a creditor issues any funds with respect to 
an extension of credit described in this sub-
section, the creditor shall notify the relevant in-
stitution of higher education, in writing, of the 
amount of the extension of credit and the stu-
dent on whose behalf credit is extended. The 
form of such written notification shall be sub-
ject to the regulations of the Consumer Finan-
cial Protection Bureau. 
‘‘(C) ANNUAL
REPORT.—A creditor that 
issues funds with respect to an extension of 
credit described in this subsection shall prepare 
and submit an annual report to the Consumer 
Financial Protection Bureau containing the re-
quired information about private student loans 
to be determined by the Consumer Financial 
Protection Bureau, in consultation with the 
Secretary of Education.’’. 
(b) DEFINITION OF PRIVATE EDUCATION LOAN.— 
Section 140(a)(7)(A) of the Truth in Lending Act (15 
U.S.C. 1650(a)(7)(A)) is amended— 
(1) by redesignating clause (ii) as clause (iii); 
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