Lowering Education Costs and Debt Act

This bill makes various changes to the federal student loan system, including by addressing options for student loan repayment.

First, the bill requires the National Center for Education Statistics to establish a secure and privacy-protected data system that contains information about postsecondary students.

Second, the bill requires the Department of Education (ED) to develop standard terminology and a format for financial aid offer forms based on recommendations from representatives of certain groups. Each institution of higher education (IHE) that participates in federal student aid programs must (1) use the standard form when offering financial aid to students, and (2) use the standard terminology and definitions developed by ED for all communications related to financial aid offers.

The bill revises and expands loan counseling for borrowers of federal student loans. For example, the bill requires an IHE that participates in federal student aid programs to provide loan counseling to a student borrower of a federal student loan at the first disbursement of a loan in each award year.

Additionally, the bill addresses options for student loan repayment and access to federal student loans. For example, the bill consolidates existing repayment plans into two options: a standard 10-year repayment plan and an income-driven repayment plan.

The bill limits federal student loan borrowing for graduate and professional students by (1) terminating the ability of a graduate or professional student to receive a Direct PLUS Loan, and (2) reducing the aggregate loan limits for Direct Unsubsidized Loans.