The bill would also require colleges with higher than average default rates to ramp up their counseling to include financial literacy and budgeting.
"This is a very solid piece of legislation," says Kantrowitz, who notes that the bill has enough bipartisan support to be included in reauthorization of the Higher Education Act, which expires at the end of 2014.
Whether Congress can come together to pass a new iteration of the Higher Education Act this year is still a big question mark, he says.
"The last reauthorization was originally supposed to occur in 2002," Kantrowitz says. "They passed 13 extension bills until it was finally passed in 2008, and this Congress is at least as contentious."
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
Corrected on : Corrected 1/15/14: A previous version of this article misstated the name of the New America Foundation.