River Bend Times

U.S. Representative Mariannette Miller-Meeks and Senator Chuck Grassley have reintroduced the Know Before You Owe Federal Student Loan Act of 2025. This legislation aims to provide students with comprehensive information before they take on federal student loans.

The bill focuses on enhancing pre-loan counseling and requires students to confirm manually the amount they choose to borrow. It also mandates clear disclosures throughout the borrowing period, which include estimated monthly payments, projected income, and personalized financial comparisons.

"Borrowing for college is a serious commitment, not something that should be rushed into with little guidance or transparency," said Congresswoman Miller-Meeks. "This bipartisan bill ensures students and families understand the true cost of borrowing and have the tools to make smart financial decisions before debt piles up."

Senator Grassley added, "When it comes to college costs, we ought to focus on fixing the process on the front-end before students get in over their heads. The federal government should be offering commonsense resources to better prepare borrowers."

Steve McCullough, President and CEO of Iowa Student Loan Liquidity Corporation, expressed support for the legislation: "Our experience requiring applicants to complete the Student Loan Game Plan tool has shown that when students are equipped with clear, accurate information, they make smarter financial decisions."

The bill arrives as student loan debt in the U.S. exceeds $1.7 trillion. While some advocate for forgiveness plans, this legislation emphasizes up-front clarity to prevent future debt crises by providing real numbers instead of false promises.

The Know Before You Owe Act includes provisions for quarterly loan statements even when repayment is not due. This helps students track debt accumulation and understand interest impacts over time.

Senator Grassley leads the companion bill in the Senate with support from Iowa’s congressional delegation and national advocates for student financial literacy.

The Know Before You Owe Federal Student Loan Act of 2025 will require institutions to offer annual personalized pre-loan counseling and include comparisons of debt-to-income based on a student's field of study. Borrowers must manually confirm their loan amounts before funds are disbursed, and quarterly updates during school will help track total borrowing and interest accrual.