Know Before You Owe Federal Student Loan Act of 2021

The Know Before You Owe Federal Student Loan Act of 2021 would require colleges to provide annual counseling to student loan borrowers that compares their estimated monthly payments to their projected future income. To increase transparency, lenders would be required to send quarterly statements showing how much interest is accruing even while students are still in school and not yet making payments. Additionally, students would have to manually enter the specific dollar amount they wish to borrow each year to ensure they are making a conscious decision about the total debt they are taking on.