Know Before You Owe Federal Student Loan Act of 2025 revises student loan counseling requirements.
The Know Before You Owe Federal Student Loan Act of 2025 amends the Higher Education Act of 1965 to revise counseling requirements for student loan borrowers. It changes "entrance counseling" to "pre-loan counseling" and requires students to manually enter the exact dollar amount of Federal Direct Loan funding they desire to borrow. The bill also mandates that lenders provide borrowers with quarterly statements during periods when loan payments are not required, including details such as the original principal amount, current balance, interest rate, and total interest paid.
Included in complete analysis
- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.