I 
117TH CONGRESS 
2D SESSION 
H. R. 6425 
To amend the Higher Education Act of 1965 to increase the maximum 
Federal Pell Grant amount, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 19, 2022 
Mr. DEFAZIO introduced the following bill; which was referred to the Com-
mittee on Education and Labor, and in addition to the Committees on 
Agriculture, and Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to increase 
the maximum Federal Pell Grant amount, 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 ‘‘Achieving Independ-
ence through Degrees Act’’ or the ‘‘AID Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
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TITLE I—ADJUSTMENTS TO FEDERAL PELL GRANTS 
Sec. 101. Increase in maximum Federal Pell Grant amount. 
Sec. 102. Increase in total semesters of Federal Pell Grant eligibility. 
Sec. 103. Extending Federal Pell Grant eligibility of certain short-term pro-
grams. 
Sec. 104. Full exclusion from gross income for Pell Grants. 
Sec. 105. Expanding the use for Pell Grants. 
TITLE II—FINANCIAL AID COUNSELING FOR BORROWERS 
Sec. 201. Annual financial aid counseling. 
Sec. 202. Exit counseling. 
Sec. 203. Online counseling tools. 
Sec. 204. Longitudinal study on the effectiveness of student loan counseling. 
TITLE III—ADJUSTMENTS TO THE FAFSA FORM 
Sec. 301. Provisional independence for certain students. 
Sec. 302. Revision of FAFSA form. 
TITLE IV—FINANCIAL AID SHOPPING SHEET 
Sec. 401. Secretarial requirements. 
Sec. 402. Requirements for institutions of higher education. 
TITLE V—SNAP AND HIGHER EDUCATION 
Sec. 501. SNAP treatment of living expenses included in educational loans. 
Sec. 502. Eligibility of students to participate in the supplemental nutrition as-
sistance program. 
TITLE VI—ADJUSTMENTS TO CAMPUS-BASED STUDENT 
FINANCIAL AID PROGRAMS 
PART 1—FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS 
Sec. 601. Purpose; appropriations authorized. 
Sec. 602. Allocation of funds. 
PART 2—FEDERAL WORK-STUDY PROGRAMS 
Sec. 610. Purpose; authorization of appropriations. 
Sec. 611. Allocation formula. 
Sec. 612. Grants for Federal work-study programs. 
Sec. 613. Flexible use of funds. 
Sec. 614. Job location and development programs. 
Sec. 615. Community service. 
Sec. 616. Pilot grant program. 
Sec. 617. Department activities. 
Sec. 618. Study and report. 
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TITLE I—ADJUSTMENTS TO 
FEDERAL PELL GRANTS 
SEC. 101. INCREASE IN MAXIMUM FEDERAL PELL GRANT 
AMOUNT. 
(a) AWARD YEAR 2022–2023.—Section 401(b)(7)(C) 
of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(7)(C)) is amended by striking clauses (ii) and 
(iii) and inserting the following: 
‘‘(ii) AWARD
YEAR
2022–2023.—For 
award year 2022–2023, the amount deter-
mined under this subparagraph for pur-
poses of subparagraph (B)(iii) shall be in-
creased to $13,000.’’. 
(b) AWARD YEAR 2023–2024, AND EACH SUBSE-
QUENT AWARD YEAR.—Section 401(b)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(5)), as 
amended by the FAFSA Simplification Act under section 
703 of division FF of Public Law 116–260, is further 
amended to read as follows: 
‘‘(5) 
TOTAL
MAXIMUM
FEDERAL
PELL 
GRANT.— 
‘‘(A) AWARD YEAR 2023–2024.—For award 
year 2023–2024, the total maximum Federal 
Pell Grant award per student shall be equal to 
the sum of— 
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‘‘(i) $13,000; and 
‘‘(ii) the amount specified as the max-
imum Federal Pell Grant in the last en-
acted appropriation Act applicable to that 
award year. 
‘‘(B) AWARD YEAR 2024–2025, AND EACH 
SUBSEQUENT AWARD YEAR.—For award year 
2024–2025 and each subsequent award year, 
the total maximum Federal Pell Grant award 
per student shall be equal to the sum of— 
‘‘(i)(I) for award year 2024–2025, 
$13,000, increased by a percentage equal 
to the annual adjustment percentage for 
award year 2024–2025; and 
‘‘(II) for award year 2025–2026 and 
each subsequent award year, the amount 
determined under this clause for the pre-
ceding year, increased by a percentage 
equal to the annual adjustment percentage 
for the award year for which the amount 
under this clause is being determined; and 
‘‘(ii) the amount specified as the max-
imum Federal Pell Grant in the last en-
acted appropriation Act applicable to that 
award year. 
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‘‘(C) ROUNDING.—The total maximum 
Federal Pell Grant for any award year shall be 
rounded to the nearest $5. 
‘‘(D) ANNUAL ADJUSTMENT PERCENTAGE 
DEFINED.—In this paragraph, the term ‘annual 
adjustment percentage’ as applied to an award 
year, is equal to the estimated percentage 
change in the Consumer Price Index (as deter-
mined by the Secretary, using the definition in 
section 478(f)) for the most recent calendar 
year ending prior to the beginning of that 
award year.’’. 
SEC. 102. INCREASE IN TOTAL SEMESTERS OF FEDERAL 
PELL GRANT ELIGIBILITY. 
(a) AWARD YEAR 2022–2023.—Section 401(c)(5) of 
the Higher Education Act of 1965 (20 U.S.C. 
1070a(c)(5)) is amended by striking ‘‘12’’ both places it 
appears and inserting ‘‘15’’. 
(b) AWARD YEAR 2023–2024, AND EACH SUBSE-
QUENT AWARD YEAR.—Section 401(d)(5)(A) of the High-
er Education Act of 1965 (20 U.S.C. 1070a(d)(5)(A)), as 
amended by the FAFSA Simplification Act under section 
703 of division FF of Public Law 116–260, is further 
amended by striking ‘‘12’’ both places it appears and in-
serting ‘‘15’’. 
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SEC. 103. EXTENDING FEDERAL PELL GRANT ELIGIBILITY 
OF CERTAIN SHORT-TERM PROGRAMS. 
(a) AWARD YEAR 2022–2023.—Section 401 of the 
Higher Education Act of 1965 (20 U.S.C. 1070a), is 
amended by inserting after subsection (j) the following: 
‘‘(k) JOB TRAINING FEDERAL PELL GRANT PRO-
GRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
CAREER
PATHWAY
PRO-
GRAM.—The term ‘eligible career pathway pro-
gram’ means a program that— 
‘‘(i) meets the requirements of section 
484(d)(2); 
‘‘(ii) is a program of training services 
listed under included on the list established 
under section 122(d) of the Workforce In-
novation and Opportunity Act (29 U.S.C. 
3152(d)); and 
‘‘(iii) is part of a career pathway, as 
defined in section 3 of such Act (29 U.S.C. 
3102). 
‘‘(B) JOB TRAINING PROGRAM.—The term 
‘job training program’ means a career and tech-
nical education program at an institution of 
higher education that— 
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‘‘(i) provides not less than 150, and 
not more than 600, clock hours of instruc-
tional time over a period of not less than 
8, and not more than 15, weeks; 
‘‘(ii) provides training aligned with 
the requirements of employers in the State 
or local area, which may include in-demand 
industry sectors or occupations, as defined 
in section 3 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3102), in 
the State or local area (as defined in such 
section); 
‘‘(iii) is a program of training services 
that is provided through an eligible pro-
vider of training services listed under sec-
tion 122(d) of such Act (29 U.S.C. 
3152(d)); 
‘‘(iv) provides a student, upon comple-
tion of the program, with a recognized 
postsecondary credential, as defined in sec-
tion 3 of such Act, that is recognized by 
employers in the relevant industry, includ-
ing credentials recognized by industry or 
sector partnerships in the State or local 
area where the industry is located; 
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‘‘(v) has been determined, by the in-
stitution of higher education, to provide 
academic content, an amount of instruc-
tional time, and a recognized postsec-
ondary credential that are sufficient to— 
‘‘(I) meet the hiring requirements 
of potential employers; and 
‘‘(II) satisfy any applicable edu-
cational prerequisite requirement for 
professional licensure or certification, 
so that the student who completes the 
program and seeks employment quali-
fies to take any licensure or certifi-
cation examination needed to practice 
or find employment in an occupation 
that the program prepares students to 
enter; 
‘‘(vi) may include integrated or basic 
skills courses; and 
‘‘(vii) may be offered as part of an eli-
gible career pathway program. 
‘‘(2) GRANT
PROGRAM.—For the award year 
beginning on July 1, 2022, and each subsequent 
award year, the Secretary shall carry out a program 
through which the Secretary shall award job training 
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Federal Pell Grants to students in job training pro-
grams. Each job training Federal Pell Grant award-
ed under this subsection shall have the same terms 
and conditions, and be awarded in the same manner, 
as a Federal Pell Grant awarded under subsection 
(a), except as follows: 
‘‘(A) A student who is eligible to receive a 
job training Federal Pell Grant under this sub-
section is a student who— 
‘‘(i) has not yet attained a bacca-
laureate degree or postbaccalaureate de-
gree; 
‘‘(ii) attends an institution of higher 
education; 
‘‘(iii) is enrolled, or accepted for en-
rollment, in a job training program at such 
institution of higher education; and 
‘‘(iv) meets all other eligibility re-
quirements for a Federal Pell Grant (ex-
cept with respect to the type of program of 
study, as provided in clause (iii)). 
‘‘(B) The amount of a job training Federal 
Pell Grant for an eligible student shall be deter-
mined 
under 
subsection 
(b)(2)(A), 
except 
that— 
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‘‘(i) the maximum Federal Pell Grant 
awarded under this subsection for an 
award year shall be 50 percent of the max-
imum Federal Pell Grant awarded under 
subsection (b)(2)(A) applicable to that 
award year; and 
‘‘(ii) subsection (b)(4) shall not apply. 
‘‘(3) INCLUSION
IN
TOTAL
ELIGIBILITY
PE-
RIOD.—Any period during which a student receives 
a job training Federal Pell Grant under this sub-
section shall be included in calculating the student’s 
period of eligibility for Federal Pell Grants under 
subsection (c), and any regulations under such sub-
section regarding students who are enrolled in an 
undergraduate program on less than a full-time 
basis shall similarly apply to students who are en-
rolled in a job training program at an eligible insti-
tution on less than a full-time basis.’’. 
(b) AWARD YEAR 2023–2024, AND EACH SUBSE-
QUENT AWARD YEAR.—Section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a), as amended by the 
FAFSA Simplification Act under section 703 of division 
FF of Public Law 116–260, is further amended by insert-
ing after subsection (j), the following: 
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‘‘(k) JOB TRAINING FEDERAL PELL GRANT PRO-
GRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
CAREER
PATHWAY
PRO-
GRAM.—The term ‘eligible career pathway pro-
gram’ means a program that— 
‘‘(i) meets the requirements of section 
484(d)(2); 
‘‘(ii) is a program of training services 
listed under included on the list established 
under section 122(d) of the Workforce In-
novation and Opportunity Act (29 U.S.C. 
3152(d)); and 
‘‘(iii) is part of a career pathway, as 
defined in section 3 of such Act (29 U.S.C. 
3102). 
‘‘(B) JOB TRAINING PROGRAM.—The term 
‘job training program’ means a career and tech-
nical education program at an institution of 
higher education that— 
‘‘(i) provides not less than 150, and 
not more than 600, clock hours of instruc-
tional time over a period of not less than 
8, and not more than 15, weeks; 
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‘‘(ii) provides training aligned with 
the requirements of employers in the State 
or local area, which may include in-demand 
industry sectors or occupations, as defined 
in section 3 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3102), in 
the State or local area (as defined in such 
section); 
‘‘(iii) is a program of training services 
that is provided through an eligible pro-
vider of training services listed under sec-
tion 122(d) of such Act (29 U.S.C. 
3152(d)); 
‘‘(iv) provides a student, upon comple-
tion of the program, with a recognized 
postsecondary credential, as defined in sec-
tion 3 of such Act, that is recognized by 
employers in the relevant industry, includ-
ing credentials recognized by industry or 
sector partnerships in the State or local 
area where the industry is located; 
‘‘(v) has been determined, by the in-
stitution of higher education, to provide 
academic content, an amount of instruc-
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tional time, and a recognized postsec-
ondary credential that are sufficient to— 
‘‘(I) meet the hiring requirements 
of potential employers; and 
‘‘(II) satisfy any applicable edu-
cational prerequisite requirement for 
professional licensure or certification, 
so that the student who completes the 
program and seeks employment quali-
fies to take any licensure or certifi-
cation examination needed to practice 
or find employment in an occupation 
that the program prepares students to 
enter; 
‘‘(vi) may include integrated or basic 
skills courses; and 
‘‘(vii) may be offered as part of an eli-
gible career pathway program. 
‘‘(2) GRANT
PROGRAM.—For the award year 
beginning on July 1, 2023, and each subsequent 
award year, the Secretary shall carry out a program 
through which the Secretary shall award job training 
Federal Pell Grants to students in job training pro-
grams. Each job training Federal Pell Grant award-
ed under this subsection shall have the same terms 
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and conditions, and be awarded in the same manner, 
as a Federal Pell Grant awarded under subsection 
(a), except as follows: 
‘‘(A) A student who is eligible to receive a 
job training Federal Pell Grant under this sub-
section is a student who— 
‘‘(i) has not yet attained a bacca-
laureate degree or postbaccalaureate de-
gree; 
‘‘(ii) attends an institution of higher 
education; 
‘‘(iii) is enrolled, or accepted for en-
rollment, in a job training program at such 
institution of higher education; and 
‘‘(iv) meets all other eligibility re-
quirements for a Federal Pell Grant (ex-
cept with respect to the type of program of 
study, as provided in clause (iii)). 
‘‘(B) The amount of a job training Federal 
Pell Grant for an eligible student shall be deter-
mined under subsection (b)(1), except that— 
‘‘(i) the maximum Federal Pell Grant 
awarded under this subsection for an 
award year shall be 50 percent of the max-
imum Federal Pell Grant awarded under 
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subsection (b)(5), applicable to that award 
year; and 
‘‘(ii) the requirements related to the 
minimum Federal Pell Grant (as defined in 
section (a)(2)(F)) requirements shall not 
apply. 
‘‘(3) INCLUSION
IN
TOTAL
ELIGIBILITY
PE-
RIOD.—Any period during which a student receives 
a job training Federal Pell Grant under this sub-
section shall be included in calculating the student’s 
period of eligibility for Federal Pell Grants under 
subsection (d), and any regulations under such sub-
section regarding students who are enrolled in an 
undergraduate program on less than a full-time 
basis shall similarly apply to students who are en-
rolled in a job training program at an eligible insti-
tution on less than a full-time basis.’’. 
(c) ADDITIONAL SAFEGUARDS.—Section 496(a)(4) of 
the Higher Education Act of 1965 (20 U.S.C. 
1099b(a)(4)) is amended— 
(1) in subparagraph (A), by striking ‘‘and’’ 
after the semicolon; 
(2) in subparagraph (B)(ii), by inserting ‘‘and’’ 
after the semicolon; and 
(3) by adding at the end the following: 
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‘‘(C) if such agency or association has or 
seeks to include within its scope of recognition 
the evaluation of the quality of institutions of 
higher education participating in the job train-
ing Federal Pell Grant program under section 
401(k), such agency or association shall, in ad-
dition to meeting the other requirements of this 
subpart, demonstrate to the Secretary that, 
with respect to such job training programs— 
‘‘(i) the agency or association’s stand-
ards include a process for determining 
whether the program provides training 
aligned with the requirements of employers 
in the State or local area served by the 
program; and 
‘‘(ii) the agency or association re-
quires a demonstration that the program— 
‘‘(I) has identified each recog-
nized postsecondary credential offered 
and the corresponding industry or sec-
tor partnership that actively recog-
nizes each credential in the relevant 
industry in the State or local area 
where the industry is located; and 
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‘‘(II) provides the academic con-
tent and amount of instructional time 
that is sufficient to— 
‘‘(aa) meet the hiring re-
quirements of potential employ-
ers; and 
‘‘(bb) satisfy any applicable 
educational prerequisites for pro-
fessional licensure or certification 
requirements so that the student 
who completes the program and 
seeks employment qualifies to 
take any licensure or certification 
examination that is needed to 
practice or find employment in 
an occupation that the program 
prepares students to enter;’’. 
SEC. 104. FULL EXCLUSION FROM GROSS INCOME FOR 
PELL GRANTS. 
Section 117(b) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
‘‘(3) SPECIAL
RULE
FOR
PELL
GRANTS.— 
Amounts received under a Federal Pell Grant under 
subpart 1 of part A of title IV of the Higher Edu-
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cation Act of 1965 (20 U.S.C. 1070a et seq.) shall 
be treated as an amount received as a qualified 
scholarship notwithstanding whether such amount 
was used for qualified tuition and related expenses.’’. 
SEC. 105. EXPANDING THE USE FOR PELL GRANTS. 
(a) AWARD YEAR 2022–2023.—Section 401(e) of the 
Higher Education Act of 1965 (20 U.S.C. 1070a(e)) is 
amended by striking ‘‘Any disbursement allowed to be 
made by crediting the student’s account shall be limited 
to tuition and fees and, in the case of institutionally owned 
housing, room and board. The student may elect to have 
the institution provide other such goods and services by 
crediting the student’s account.’’ and inserting ‘‘Payments 
under this section may be used by the student for living 
and nontuition expenses.’’. 
(b) AWARD YEAR 2023–2024, AND EACH SUBSE-
QUENT AWARD YEAR.—Section 401(f) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a), as amended by the 
FAFSA Simplification Act under section 703 of division 
FF of Public Law 116–260, is further amended by strik-
ing ‘‘Any disbursement allowed to be made by crediting 
the student’s account shall be limited to tuition and fees, 
and food and housing if that food and housing is institu-
tionally owned or operated. The student may elect to have 
the institution provide other such goods and services by 
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crediting the student’s account.’’ and inserting ‘‘Payments 
under this section may be used by the student for living 
and nontuition expenses.’’. 
TITLE II—FINANCIAL AID 
COUNSELING FOR BORROWERS 
SEC. 201. ANNUAL FINANCIAL AID COUNSELING. 
Section 485(l) of the Higher Education Act of 1965 
(20 U.S.C. 1092(l)) is amended to read as follows: 
‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 
‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall ensure that each individual who re-
ceives a loan made under part D (other than a 
Federal Direct Consolidation Loan) receives 
comprehensive information on the terms and 
conditions of such loan and the responsibilities 
the individual has with respect to such loan. 
Such information shall be provided, for each 
award year for which the individual receives 
such loan, in a simple and understandable man-
ner— 
‘‘(i) during a counseling session con-
ducted in person; 
‘‘(ii) online, with the individual ac-
knowledging receipt of the information; or 
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‘‘(iii) through the use of the online 
counseling tool described in subsection 
(k)(1)(B). 
‘‘(B) USE OF INTERACTIVE PROGRAMS.— 
In the case of institutions not using the online 
counseling 
tool 
described 
in 
subsection 
(k)(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) ALL INDIVIDUALS.—The information to be 
provided under paragraph (1)(A) to each individual 
receiving counseling under this subsection shall in-
clude the following: 
‘‘(A) An explanation of how the individual 
may budget for typical educational expenses 
and a sample budget based on the cost of at-
tendance for the institution. 
‘‘(B) An explanation that an individual has 
a right to annually request a disclosure of infor-
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mation collected by a consumer reporting agen-
cy pursuant to section 612(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681j(a)). 
‘‘(C) Based on the most recent data avail-
able from the American Community Survey 
available from the Department of Commerce, 
the estimated average income and percentage of 
employment in the State of domicile of the indi-
vidual for individuals with— 
‘‘(i) a high school diploma or equiva-
lent; 
‘‘(ii) some postsecondary education 
without completion of a degree or certifi-
cate; and 
‘‘(iii) a bachelor’s degree. 
‘‘(D) An introduction to the financial man-
agement resources provided by the Financial 
Literacy and Education Commission. 
‘‘(3) BORROWERS
RECEIVING
LOANS
MADE 
UNDER
PART
D
(OTHER
THAN
PARENT
PLUS 
LOANS).—The information to be provided under 
paragraph (1)(A) to a borrower of a loan made 
under part D (other than a Federal Direct PLUS 
Loan made on behalf of a dependent student) shall 
include the following: 
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‘‘(A) To the extent practicable, the effect 
of accepting the loan to be disbursed on the eli-
gibility of the borrower for other forms of stu-
dent financial assistance. 
‘‘(B) An explanation of the use of the mas-
ter promissory note. 
‘‘(C) An explanation that the borrower is 
not required to accept the full amount of the 
loan offered to the borrower. 
‘‘(D) An explanation that the borrower 
should consider accepting any grant, scholar-
ship, or State or Federal work-study jobs for 
which the borrower is eligible prior to accepting 
Federal student loans. 
‘‘(E) 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 of 
treatment of loans made under part D and pri-
vate education loans in bankruptcy, and an ex-
planation that if a borrower decides to take out 
a private education loan— 
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‘‘(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-
tion 128(e)(7) of such Act (15 U.S.C. 
1638(e)(7)). 
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‘‘(F) An explanation of the approved edu-
cational expenses for which the borrower may 
use a loan made under part D. 
‘‘(G) Information on the annual and aggre-
gate loan limits for Federal Direct Stafford 
Loans and Federal Direct Unsubsidized Staf-
ford Loans. 
‘‘(H) Information on how interest accrues 
and is capitalized during periods when the in-
terest is not paid by either the borrower or the 
Secretary. 
‘‘(I) In the case of a Federal Direct PLUS 
Loan or a Federal Direct Unsubsidized Staf-
ford Loan, the option of the borrower to pay 
the interest while the borrower is in school. 
‘‘(J) The definition of half-time enrollment 
at the institution, during regular terms and 
summer school, if applicable, and the con-
sequences of not maintaining at least half-time 
enrollment. 
‘‘(K) An explanation of the importance of 
contacting the appropriate offices at the institu-
tion of higher education if the borrower with-
draws prior to completing the borrower’s pro-
gram of study so that the institution can pro-
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vide exit counseling, including information re-
garding the borrower’s repayment options and 
loan consolidation. 
‘‘(L) For a first-time borrower— 
‘‘(i) a statement of the anticipated 
balance on the loan for which the borrower 
is receiving counseling under this sub-
section; 
‘‘(ii) based on such anticipated bal-
ance, the anticipated monthly payment 
amount under, at minimum— 
‘‘(I) the standard repayment 
plan; and 
‘‘(II) an income-based repayment 
plan under section 493C, as deter-
mined using regionally available data 
from the Bureau of Labor Statistics 
of the average starting salary for the 
occupation in which the borrower has 
an interest in or intends to be em-
ployed; 
‘‘(iii) an estimate of the projected 
monthly payment amount under each re-
payment plan described in clause (ii), 
based on the average cumulative indebted-
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ness at graduation for borrowers of loans 
made under part D who are in the same 
program of study as the borrower; and 
‘‘(iv) an explanation of how interest 
accrues once a student borrower enters 
into repayment status. 
‘‘(M) For a borrower with an outstanding 
balance of principal or interest due on a loan 
made under this title— 
‘‘(i) a current statement of the 
amount of such outstanding balance and 
interest accrued; 
‘‘(ii) based on such outstanding bal-
ance, the anticipated monthly payment 
amount under, at minimum, the standard 
repayment plan and, using regionally avail-
able data from the Bureau of Labor Sta-
tistics of the average starting salary for 
the occupation the borrower intends to be 
employed, an income-based repayment plan 
under section 493C; 
‘‘(iii) an estimate of the projected 
monthly payment amount under each re-
payment plan described in clause (ii), 
based on— 
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‘‘(I) the outstanding balance de-
scribed in clause (i); 
‘‘(II) the anticipated outstanding 
balance on the loan for which the stu-
dent is receiving counseling under this 
subsection; 
‘‘(III) a projection for any other 
loans made under part D that the 
borrower is reasonably expected to ac-
cept during the borrower’s program of 
study based on at least the expected 
increase in the cost of attendance of 
such program; and 
‘‘(iv) an explanation of how interest 
accrues once a student borrower enters 
into repayment status. 
‘‘(N) The obligation of the borrower to 
repay the full amount of the loan, regardless of 
whether the borrower completes or does not 
complete the program in which the borrower is 
enrolled within the regular time for program 
completion. 
‘‘(O) The likely consequences of default on 
the loan, including adverse credit reports, delin-
quent debt collection procedures under Federal 
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law, and litigation, and a notice of the institu-
tion’s most recent cohort default rate (defined 
in section 435(m)), an explanation of the cohort 
default rate, the most recent national average 
cohort default rate, and the most recent na-
tional average cohort default rate for the cat-
egory 
of 
institution 
described 
in 
section 
435(m)(4) to which the institution belongs. 
‘‘(P) Information on the National Student 
Loan Data System and how the borrower can 
access the borrower’s records. 
‘‘(Q) The contact information for the insti-
tution’s financial aid office or other appropriate 
office at the institution the borrower may con-
tact if the borrower has any questions about the 
borrower’s rights and responsibilities or the 
terms and conditions of the loan. 
‘‘(4) 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: 
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‘‘(A) The information described in sub-
paragraphs (A) through (C) and (N) through 
(Q) of paragraph (3). 
‘‘(B) The option of the borrower to pay the 
interest on the loan while the loan is in 
deferment. 
‘‘(C) For a first-time borrower of such 
loan— 
‘‘(i) a statement of the anticipated 
balance on the loan for which the borrower 
is receiving counseling under this sub-
section; 
‘‘(ii) based on such anticipated bal-
ance, the anticipated monthly payment 
amount under the standard repayment 
plan; and 
‘‘(iii) an estimate of the projected 
monthly payment amount under the stand-
ard repayment plan, based on the average 
cumulative indebtedness of other borrowers 
of Federal Direct PLUS Loans made on 
behalf of dependent students who are in 
the same program of study as the student 
on whose behalf the borrower borrowed the 
loan. 
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‘‘(D) For a borrower with an outstanding 
balance of principal or interest due on such 
loan— 
‘‘(i) a statement of the amount of 
such outstanding balance; 
‘‘(ii) based on such outstanding bal-
ance, the anticipated monthly payment 
amount under the standard repayment 
plan; and 
‘‘(iii) an estimate of the projected 
monthly payment amount under the stand-
ard repayment plan, based on— 
‘‘(I) the outstanding balance de-
scribed in clause (i); 
‘‘(II) the anticipated outstanding 
balance on the loan for which the bor-
rower is receiving counseling under 
this subsection; and 
‘‘(III) a projection for any other 
Federal Direct PLUS Loan made on 
behalf of the dependent student that 
the borrower is reasonably expected to 
accept during the program of study of 
such student based on at least the ex-
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