releases: https://web.archive.org/web/20140222033758/http://schwartz.house.gov/press-release/schwartz-bill-seeks-stronger-disclosure-student-loan-options
Data license: MIT · Data source: dwillis/congress-press
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| https://web.archive.org/web/20140222033758/http://schwartz.house.gov/press-release/schwartz-bill-seeks-stronger-disclosure-student-loan-options | Schwartz Bill Seeks Stronger Disclosure of Student Loan Options | 2013-11-21 | 2013 | 2013-11 | Democrat | House | PA | Allyson Schwartz | S001162 | web.archive.org | legacy | Washington, D.C. – U.S. Reps. Allyson Y. Schwartz (PA-13), Jared Polis (CO-2) and Tim Bishop (NY-1) today reintroduced the Know Before You Owe Act to ensure that families and students have greater access to critical information about their student loan options. The legislation requires schools to counsel students on the financial aid options available to them from both the federal government and the private market. It also requires private lenders to adopt common-sense measures to protect student borrowers. “This bill empowers students and families to make the most informed choices about how to afford college and invest in their future without taking on unnecessary debt,” Schwartz said. “Strengthening the transparency of student loan options can help make college more affordable and provide a safeguard against those who might try to deceive students and families facing difficult financial decisions.” “In today’s knowledge-based economy, a college degree is the best investment that a student can make for their future,” Polis said. “However with the rising costs of higher education, today’s students are being hamstrung by record debt levels, forcing them to delay other important investments in their futures, including saving for a secure retirement or purchasing a home. By empowering students with simple disclosure and coordination about the federal financial aid options before they turn to more expensive private loans, the Know Before You Owe Act will go a long way to help students make smart choices about the most affordable student loan opportunities available to them. Through simple coordination and disclosure, we can save student loan borrowers billions of dollars and make their education more affordable.” Americans face more than $1 trillion in student loan debt, and 40 percent of students with private loans have not exhausted all of their federal loan options, according to the Consumer Financial Protection Bureau. There are several major differences between private student loans and federal student loans. Federal loans offer lower, fixed interest rates, consumer protections and manageable repayment options. In contrast, private student loans typically have uncapped, variable rates, hefty fees and few consumer protections. Higher education costs have steadily increased across the United States, and the Federal Reserve Bank of New York reports that student loan debt continues to exceed credit card debt. In Pennsylvania, tuition and fees average more than $12,000 at public four-year universities and over $35,000 at private universities. In 2011, 70 percent of college seniors in Pennsylvania graduated with student loan debt, with the average amount approaching $30,000, according to the Institute for College Access and Success. Pennsylvania ranks 7th in the nation for the number of college graduates saddled with student loan debt. “The Know Before You Owe Act would ensure that aid administrators are a part of the process of issuing private loans and that students and parents do not borrow more than they need to meet their postsecondary education-related expenses. It also guarantees that the institutions’ financial aid officers have an opportunity to counsel students about loan choices and indebtedness before they borrow. On behalf of PASFAA I want to thank Rep. Schwartz for her hard work on this issue and her dedication to helping Pennsylvania’s students and families gain access to postsecondary education,” said Cheryl De Paolis, President of the Pennsylvania Association of Student Financial Aid Administrators (PASFAA). “Students deserve to know what they’re signing up for when they enroll in college. As Millennials compare different colleges, transparency is key. I applaud Rep. Schwartz for introducing the Know Before You Owe Act, an important step to help prospective college students gather the necessary information needed to make smart investments for their future,” said Anne Johnson, Executive Director of Generation Progress. Organizations Supporting the Know Before You Owe Act: Pennsylvania Association of Student Financial Aid Administrators (PASFAA), National Association of Student Financial Aid Administrators, National Association for College Admission Counseling, National Council of La Raza, Generation Progress, Council for Opportunity in Education, Young Invincibles, National Consumer Law Center, The Institute for College Access and Success, National Consumers League, American Federation of Teachers, The Education Trust, U.S. Public Interest Research Group, Consumer Action, Democrats for Education Reform, American Podiatric Medical Students' Association, American Podiatric Medical Association, Association of American Medical Colleges, Demos, and Student Administrator Affairs in Higher Education. The Know Before You Owe Act requires private lenders to: Certify with the borrower’s school that the student is enrolled and the amount the student is eligible to borrow before issuing a private loan. Provide the borrower with quarterly updates on their loans, including accrued but unpaid interest and capitalized interest. Report information to the Consumer Financial Protection Bureau about their student loans. The bill requires institutions of higher education to: Inform students about their federal financial aid availability and eligibility; their ability to select a private lender of their choice; the impact of a private loan on their eligibility for other forms of financial aid; and their right to accept, reject or cancel a private loan as allowed under current law; and Notify students about the terms and conditions of federal and private student loans. Sens. Richard J. Durbin of Illinois and Tom Harkin of Iowa re-introduced companion legislation (S. 113) in the Senate on Jan. 23, 2013. ### | 1 | 2026-03-30T12:14:52Z | 2026-03-30T12:14:52Z |