Know Before You Owe Federal Student Loan Act of 2025

# Know Before You Owe Federal Student Loan Act of 2025 - Summary **What the Bill Would Do:** This bill aims to require the federal government to provide clearer information to student loan borrowers before they take out loans. While specific details aren't provided in the available information, the bill's title suggests it would mandate disclosure of loan terms, costs, and repayment obligations upfront—similar to "truth in lending" requirements that exist in other financial markets. The goal is to help borrowers understand what they're committing to before signing loan documents. **Who It Affects:** The bill would primarily affect students considering federal student loans and the Department of Education, which administers these loans.

Colleges and universities may also be impacted if they're required to provide additional disclosures or documentation to students. **Current Status:** As of now, the bill (S 1559) is in committee, meaning it hasn't yet advanced to a full Senate vote. It was introduced by Senator Chuck Grassley (R-Iowa) in the 119th Congress. The bill remains in the early legislative stage and would need committee approval and broader congressional support to move forward.