Miller-Meeks, Grassley Reintroduce Bill to Equip Students with Full Loan Info Before Borrowing
Washington, D.C. – U.S. Representative Mariannette Miller-Meeks (IA-01), alongside Senator Chuck Grassley (R-IA), has reintroduced the Know Before You Owe Federal Student Loan Act of 2025, legislation that ensures students are fully informed before taking on federal student loans.
The bill strengthens pre-loan counseling and requires students to manually confirm the amount they choose to borrow. It also mandates clear, updated disclosures throughout the borrowing period—including estimated monthly payments, projected income, and personalized financial comparisons—so students can make informed decisions and avoid over-borrowing.
"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. It’s about transparency, responsibility, and protecting future borrowers from being blindsided."
“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." Said Senator Grassley. "Our Know Before You Owe Federal Student Loan Act will enhance current loan counseling requirements for higher education institutions. It will also help students decide how much they want to borrow, not just accept the maximum possible loan that’s offered. In the Senate, I’m working to help America’s next generation pursue higher education opportunities without breaking the bank.”
"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," said Steve McCullough, President and CEO of Iowa Student Loan Liquidity Corporation. "Congresswoman Miller-Meeks’ Know Before You Owe bill takes that principle nationwide, empowering students to make informed choices and achieve better outcomes from college. We commend her for reintroducing this important legislation."
The legislation comes at a time when student loan debt in the U.S. has surpassed $1.7 trillion. While some politicians push sweeping forgiveness plans, this bill focuses on up-front clarity to prevent future debt crises—giving students real numbers, not false promises.
The Know Before You Owe Act also requires quarterly loan statements even when repayment is not due, helping students track debt accumulation and understand the impact of interest over time.
Senator Grassley is leading the companion bill in the Senate. The bill is supported by members of Iowa’s congressional delegation and national advocates for student financial literacy.
Background:
The Know Before You Owe Federal Student Loan Act of 2025 will:
- Require institutions to provide personalized pre-loan counseling every year, not just once.
- Include clear comparisons of debt-to-income based on a student’s field of study.
- Require borrowers to manually confirm their loan amount before funds are disbursed.
- Provide quarterly loan updates during school and deferment to track total borrowing and interest accrual.
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