Senate

Grassley to roll out student loan bill

by Jordain Carney - 09/14/15 10:46 AM ET

Sen. Chuck Grassley (R-Iowa) will introduce legislation this week aimed at increasing students’ awareness of their ability to pay back federal loans.

“A college education generally remains a good investment,” Grassley said in a statement. “But when students’ academic dreams become a nightmare upon graduation because they borrowed more from the federal government than they can afford to repay with the degree they earned, they understandably feel something is wrong.”

{mosads}Under Grassley’s legislation, all students who are going to take out a federal loan to help pay for college would have to undergo counseling that would include an estimate of how much the student will likely make upon graduating versus their loan debt. Students would also look at potential options for scholarships or work to help offset costs.

Grassley also wants students to either write down or type on a computer how much they are planning to borrow, so they can “make a conscious decision about how much they borrow rather than simply accepting the total amount of loans for which they are eligible,” according to his office.

Grassley said that his legislation, which also requires that students receive loan statements while in school, is based on similar programs in Iowa. He added that the “federal government … has a responsibility to at least ensure that students know what they’re getting themselves into before they get in over their heads. ”

The Iowa Republican is hoping that the legislation will be included in a reauthorization of the Higher Education Act, which expires at the end of the month.

Tags Chuck Grassley