Title: Educating Student Loan Borrowers Act of 2017
Policy area: Education

Summary:
Educating Student Loan Borrowers Act of 2017
This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to expand disclosure requirements related to student loan repayment options applicable to an institution of higher education that participates in the William D. Ford Federal Direct Loan Program.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3051 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3051

  To amend the Higher Education Act of 1965 to require contractors to 
 provide certain annual disclosures during a period of loan repayment, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 2017

 Mr. Welch (for himself and Mr. Katko) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
  To amend the Higher Education Act of 1965 to require contractors to 
 provide certain annual disclosures during a period of loan repayment, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Educating Student Loan Borrowers Act 
of 2017''.

SEC. 2. DISCLOSURES REQUIRED DURING LOAN REPAYMENT.

    (a) Contractor Required Disclosures.--Section 455(p) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(p)) is amended--
            (1) by striking ``Each institution'' and inserting the 
        following:
            ``(1) In general.--Each institution''; and
            (2) by adding at the end the following:
            ``(2) Annual required disclosures.--
                    ``(A) Annual disclosure.--In addition to the 
                disclosures required under paragraph (1), each 
                contractor described in such paragraph shall provide 
                the borrower of a loan made under this part with a 
                disclosure each year in which a payment is due to such 
                contractor on such loan that includes--
                            ``(i) a description of the repayment plans 
                        available to the borrower, including how the 
                        borrower should request a change in repayment 
                        plan;
                            ``(ii) a description of repayment plans 
                        available to public service employees;
                            ``(iii) a general description of the terms 
                        and conditions under which the borrower may 
                        obtain full or partial forgiveness or 
                        cancellation of the principal and interest of a 
                        loan made under this part;
                            ``(iv) with respect to--
                                    ``(I) a borrower repaying a loan 
                                under an income contingent repayment 
                                plan under subsection (e), a reminder 
                                to provide the Secretary the income 
                                information necessary to determine the 
                                borrower's annual repayment obligation 
                                under such subsection; and
                                    ``(II) a borrower repaying a loan 
                                under an income-based repayment plan 
                                under section 493C, a reminder to 
                                provide the Secretary with the income 
                                information necessary to determine the 
                                borrower's annual repayment obligation 
                                under such section; and
                            ``(v) recommendations on where to obtain 
                        more detailed information on repayment plans 
                        and loan forgiveness, including a link to the 
                        appropriate page of the Department's website 
                        with respect to such information.
                    ``(B) Requirements.--The information included in a 
                disclosure required under subparagraph (A) shall--
                            ``(i) be provided to the borrower of a loan 
                        made under this part not later than March 1 of 
                        each year in which a payment is due on such 
                        loan;
                            ``(ii) be correctly labeled to indicate 
                        that such information is available from the 
                        Department;
                            ``(iii) not be labeled to indicate that 
                        such information is created by the contractor; 
                        and
                            ``(iv) to the extent practicable, be 
                        disseminated in both physical and electronic 
                        form to the borrower.
                    ``(C) Consumer tested information.--The Secretary 
                shall ensure that the Department information provided 
                to borrowers under subparagraph (A)(iii) is consumer 
                tested and updated periodically.''.
    (b) Department Guidance.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall issue guidance with 
respect to the information required to be disclosed under paragraph (2) 
of section 455(p) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(p)), as amended by this section.
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