Informed Student Borrowing Act of 2023

This bill requires colleges to provide student borrowers with clearer financial information before they accept federal loans. It mandates that students manually enter their desired loan amount each year (instead of automatically accepting full eligibility) and receive specific disclosures, including sample repayment costs based on median debt and earnings data from the College Scorecard. Institutions must also explain that borrowers aren't required to take the full loan amount offered and provide details on completion rates, repayment statistics, and the loan's annual percentage rate. These changes apply to all undergraduate and graduate students receiving Federal Direct Loans, as well as parent borrowers for PLUS Loans.