Know Before You Owe Federal Student Loan Act of 2023

This bill requires colleges to provide pre-loan counseling to students before they take out federal student loans, including an estimate of monthly payments compared to expected income after expenses (using government data) and a full breakdown of all debt (federal, private, and future costs). It also mandates that lenders send borrowers quarterly statements during non-payment periods (like while in school), showing loan balances, interest rates, payments made, and how making small payments can reduce total interest. These changes apply directly to students receiving federal loans, colleges, and loan servicers. The goal is to improve transparency about long-term repayment impacts before borrowing begins.