Introduced in March, 2012 by Senators Dick Durbin (D-IL) and Tom Harkin (D-IA), the Know Before You Owe Act of 2012 amends both the Higher Education Act and the Truth in Lending Act to strengthen requirements surrounding private student loans. Private lenders would have to obtain information before issuing a loan, including certification from the school that students have been fully informed of their financing options. This certification process has been found to reduce the amount borrowed 30% of the time and decrease the default rate. With requirements for both private lenders and schools, the bill aims to increase financial literacy among students and improve responsible lending practices.