II 

108TH CONGRESS 

1ST SESSION S. 1800

To amend the Higher Education Act of 1965 to enhance literacy in finance 

and economics, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 30, 2003

Mr. AKAKA (for himself, Mr. SARBANES, and Mr. CORZINE) introduced the 

following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

A BILL

To amend the Higher Education Act of 1965 to enhance 

literacy in finance and economics, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘College Literacy in 

5 Finance and Economics (College LIFE) Act’’. 

6 SEC. 2. AREAS OF EMPHASIS. 

7 Part B of title I of the Higher Education Act of 1965 

8 (20 U.S.C. 1011 et seq.) is amended by adding at the end 

9 the following: 
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1 ‘‘SEC. 123. AREAS OF EMPHASIS. 

2 ‘‘In carrying out activities under this Act related to 

3 improving financial and economic literacy, education, and 

4 counseling, the Secretary shall emphasize, among other 

5 elements, basic personal income and household money 

6 management and financial planning skills, and basic eco7 nomic decision making skills, including how to—

8 ‘‘(1) create household budgets, initiate savings 

9 plans, and make strategic investment decisions for 

10 education, employment, retirement, home ownership, 

11 wealth building, or other savings goals; 

12 ‘‘(2) manage credit and debt effectively, includ13 ing student financial aid and credit card debt, and 

14 understand the merits of establishing and maintain15 ing excellent credit history; 

16 ‘‘(3) understand, evaluate, and compare fair 

17 and favorable financial products, services, and op18 portunities, and avoid abusive, predatory, or decep19 tive financial products, services, and opportunities; 

20 ‘‘(4) complete tax returns and understand tax 

21 consequences when making certain financial deci22 sions, such as placing an investment or purchasing 

23 a home; 

24 ‘‘(5) identify economic problems, alternatives, 

25 benefits, and costs; 
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1 ‘‘(6) analyze the incentives at work in an eco2 nomic situation; 

3 ‘‘(7) examine the consequences of changes in 

4 economic conditions and public policies; 

5 ‘‘(8) collect and organize economic evidence, in6 cluding understanding, evaluating, and making stra7 tegic decisions using economic indicators; 

8 ‘‘(9) compare benefits with costs; and 

9 ‘‘(10) improve financial and economic literacy 

10 and education through all other related skills.’’. 

11 SEC. 3. COORDINATION. 

12 In carrying out the financial and economic literacy 

13 activities authorized under this Act and the amendments 

14 made by this Act, the Secretary of Education, to the great15 est extent practicable, shall coordinate such activities with 

16 the financial and economic literacy efforts of a Federal 

17 commission comprised of members from the Department 

18 of Education, the Department of the Treasury, and other 

19 entities the President, the Secretary of Education, and the 

20 Secretary of the Treasury determine appropriate. 

21 SEC. 4. ENHANCEMENT OF FINANCIAL LITERACY AND ECO22 NOMIC LITERACY. 

23 The Higher Education Act of 1965 (20 U.S.C. 1001 

24 et seq.) is amended—
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1 (1) in section 201(a)(3), by inserting ‘‘personal 

2 finance,’’ after ‘‘economics,’’; 

3 (2) in section 311(c)—

4 (A) by redesignating paragraphs (7) 

5 through (12) as paragraphs (8) through (13), 

6 respectively; and 

7 (B) by inserting after paragraph (6) the 

8 following: 

9 ‘‘(7) Education or counseling services designed 

10 to improve the financial literacy and economic lit11 eracy of students and their parents.’’; 

12 (3) in section 316(c)(2)—

13 (A) by redesignating subparagraphs (G) 

14 through (L) as subparagraphs (H) through 

15 (M), respectively; 

16 (B) by inserting after subparagraph (F) 

17 the following: 

18 ‘‘(G) education or counseling services de19 signed to improve the financial literacy and eco20 nomic literacy of students and their parents;’’; 

21 and 

22 (C) in subparagraph (M), as redesignated 

23 by subparagraph (A), by striking ‘‘subpara24 graphs (A) through (K)’’ and inserting ‘‘sub25 paragraphs (A) through (L)’’; 
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1 (4) in section 317(c)(2)—

2 (A) in subparagraph (G), by striking 

3 ‘‘and’’ after the semicolon; 

4 (B) in subparagraph (H), by striking the 

5 period at the end and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(I) education or counseling services de8 signed to improve the financial literacy and eco9 nomic literacy of students and their parents.’’; 

10 (5) in section 323(a)—

11 (A) by redesignating paragraphs (7) 

12 through (12) as paragraphs (8) through (13), 

13 respectively; and 

14 (B) by inserting after paragraph (6) the 

15 following: 

16 ‘‘(7) Education or counseling services designed 

17 to improve the financial literacy and economic lit18 eracy of students and their parents.’’; 

19 (6) in section 326(c)—

20 (A) by redesignating paragraphs (5) 

21 through (7) as paragraphs (6) through (8), re22 spectively; and 

23 (B) by inserting after paragraph (4) the 

24 following:
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1 ‘‘(5) education or counseling services designed 

2 to improve the financial literacy and economic lit3 eracy of students and their parents;’’; 

4 (7) in section 503(b)—

5 (A) by redesignating paragraphs (5) 

6 through (14) as paragraphs (6) through (15), 

7 respectively; and 

8 (B) by inserting after paragraph (4) the 

9 following: 

10 ‘‘(5) Education or counseling services designed 

11 to improve the financial literacy and economic lit12 eracy of students and their parents.’’; 

13 (8) in section 402B(b)—

14 (A) by redesignating paragraphs (3) 

15 through (10) as paragraphs (4) through (11), 

16 respectively; 

17 (B) by inserting after paragraph (2) the 

18 following: 

19 ‘‘(3) education or counseling services designed 

20 to improve the financial literacy and economic lit21 eracy of students and their parents;’’; and 

22 (C) in paragraph (11), as redesignated by 

23 subparagraph (A), by striking ‘‘paragraphs (1) 

24 through (9)’’ and inserting ‘‘paragraphs (1) 

25 through (10)’’; 
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1 (9) in section 402C—

2 (A) in subsection (b)—

3 (i) by redesignating paragraphs (2) 

4 through (12) as paragraphs (3) through 

5 (13), respectively; 

6 (ii) by inserting after paragraph (1) 

7 the following: 

8 ‘‘(2) education or counseling services designed 

9 to improve the financial literacy and economic lit10 eracy of students and their parents;’’; and 

11 (iii) in paragraph (13), as redesig12 nated by clause (i), by striking ‘‘para13 graphs (1) through (11)’’ and inserting 

14 ‘‘paragraphs (1) through (12)’’; and 

15 (B) in subsection (e), by striking ‘‘sub16 section (b)(10)’’ and inserting ‘‘subsection 

17 (b)(11)’’; 

18 (10) in section 402D(b)—

19 (A) by redesignating paragraphs (2) 

20 through (10) as paragraphs (3) through (11), 

21 respectively; 

22 (B) by inserting after paragraph (1) the 

23 following: 
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1 ‘‘(2) education or counseling services designed 

2 to improve the financial literacy and economic lit3 eracy of students and their parents;’’; and 

4 (C) in paragraph (11), as redesignated by 

5 subparagraph (A), by striking ‘‘paragraphs (1) 

6 through (9)’’ and inserting ‘‘paragraphs (1) 

7 through (10)’’; 

8 (11) in section 402E(b)—

9 (A) by redesignating paragraphs (7) and 

10 (8) as paragraphs (8) and (9), respectively; and 

11 (B) by inserting after paragraph (6) the 

12 following: 

13 ‘‘(7) education or counseling services designed 

14 to improve the financial literacy and economic lit15 eracy of students and their parents;’’; 

16 (12) in section 402F(b)—

17 (A) by redesignating paragraphs (4) 

18 through (10) as paragraphs (5) through (11), 

19 respectively; 

20 (B) by inserting after paragraph (3) the 

21 following: 

22 ‘‘(4) education or counseling services designed 

23 to improve the financial literacy and economic lit24 eracy of students and their parents;’’; and 
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1 (C) in paragraph (11), as redesignated by 

2 subparagraph (A), by striking ‘‘paragraphs (1) 

3 through (9)’’ and inserting ‘‘paragraphs (1) 

4 through (10)’’; 

5 (13) in section 404D(b)(2)(A)(ii), by striking 

6 ‘‘and academic counseling’’ and inserting ‘‘academic 

7 counseling, and financial literacy and economic lit8 eracy education or counseling’’; 

9 (14) by striking section 418A(c)(1)(B)(i) and 

10 inserting the following: 

11 ‘‘(i) personal, academic, career, and eco12 nomic education or personal finance counseling 

13 as an ongoing part of the program;’’; 

14 (15) in section 428F(b), by inserting at the end 

15 the following: ‘‘Where appropriate, such program 

16 shall include making available financial and eco17 nomic education materials for the borrower.’’; 

18 (16) in section 432(k)(1), by striking ‘‘and of19 fering’’ and all that follows through the period and 

20 inserting ‘‘, offering loan repayment matching provi21 sions as part of employee benefit packages, and pro22 viding employees with financial and economic edu23 cation and counseling.’’; 

24 (17) in section 441(c)—
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1 (A) in paragraph (1), by inserting ‘‘finan2 cial literacy and economic literacy,’’ after ‘‘so3 cial services,’’; and 

4 (B) in paragraph (4)(C), by striking the 

5 period at the end and inserting ‘‘and counseling 

6 for the purposes of improving financial literacy 

7 and economic literacy.’’; 

8 (18) in section 485—

9 (A) in subsection (a)(1)(D), by striking the 

10 semicolon at the end and inserting ‘‘, including 

11 the merits of taking a personal finance course, 

12 if the institution offers such a course, and of 

13 the student reviewing the student’s personal 

14 credit profile not less frequently than once a 

15 year;’’; 

16 (B) in subsection (b)—

17 (i) in paragraph (1)(A)—

18 (I) in clause (i), by striking 

19 ‘‘and’’ after the semicolon; 

20 (II) in clause (ii), by striking the 

21 period at the end and inserting ‘‘; 

22 and’’; and 

23 (III) by adding at the end the 

24 following:
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1 ‘‘(iii) if it is determined during the 

2 counseling that the borrower is not con3 nected to a mainstream financial institu4 tion, information about low-cost financial 

5 services and the benefits of using such 

6 services, and where and how the borrower 

7 could open a low-cost account in a feder8 ally insured credit union or bank.’’; and 

9 (ii) by adding at the end the fol10 lowing: 

11 ‘‘(3) PILOT PROGRAM.—

12 ‘‘(A) AUTHORIZATION.—

13 ‘‘(i) IN GENERAL.—The Secretary 

14 shall establish a pilot program that awards 

15 a total of 5 grants to 5 different institu16 tions of higher education that are located 

17 in geographically different parts of the 

18 United States to enable the institutions to 

19 provide annual personal finance counseling 

20 for students enrolled at such institutions. 

21 ‘‘(ii) MINORITY SERVING INSTITU22 TIONS.—In awarding grants under this 

23 paragraph, the Secretary shall award not 

24 less than 2 of the 5 grants to institutions 
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1 of higher education that are eligible to re2 ceive assistance under title III or title V. 

3 ‘‘(B) APPLICATION.—An institution of 

4 higher education that desires to receive a grant 

5 under this paragraph shall submit an applica6 tion to the Secretary at such time, in such man7 ner, and containing such information as the 

8 Secretary may require. 

9 ‘‘(C) USE OF FUNDS.—

10 ‘‘(i) COUNSELING.—

11 ‘‘(I) IN GENERAL.—In addition 

12 to making available exit counseling 

13 under paragraph (1), an institution of 

14 higher education that receives a grant 

15 under this paragraph shall through fi16 nancial aid officers or otherwise, make 

17 available counseling to borrowers of 

18 loans which are made, insured, or 

19 guaranteed under part B (other than 

20 loans made pursuant to section 428B) 

21 of this title or made under part D or 

22 E of this title at the commencement 

23 of the borrower’s course of study at 

24 the institution, not less frequently 

25 than once annually while the borrower 
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1 is enrolled at the institution, and not 

2 later than 30 days after completion of 

3 the course of study for which the bor4 rower enrolled at the institution or at 

5 the time of departure from such insti6 tution. 

7 ‘‘(II) CONTENT.—The counseling 

8 required under subclause (I) shall in9 clude the average anticipated monthly 

10 repayments, a review of the repay11 ment options available, the total 

12 amount of interest that would be paid 

13 over a range of possible interest rates 

14 and the amount of interest in the 

15 monthly payments, information on the 

16 availability and content of a personal 

17 finance course if such course is of18 fered by the institution and if not al19 ready completed by the individual, and 

20 such debt and management strategies 

21 as the institution determines are de22 signed to facilitate the repayment of 

23 such indebtedness, which may be im24 plemented in partnership with State 

25 or local public, private, and nonprofit 
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1 entities approved by the local edu2 cational agency that serves schools in 

3 the area where the institution is lo4 cated, or a campus committee formed 

5 for the purpose of evaluating the 

6 qualifications of such entities. If it is 

7 determined during the counseling that 

8 the borrower is not connected to a 

9 mainstream financial institution, the 

10 counseling shall include information 

11 about low-cost financial services and 

12 the benefits of using such services, 

13 and where and how the borrower 

14 could open a low-cost account in a 

15 federally insured credit union or bank. 

16 ‘‘(ii) PERMISSIVE USE.—Grant funds 

17 received under this paragraph may be used 

18 to pay for additional financial aid per19 sonnel or for training for existing financial 

20 aid personnel. 

21 ‘‘(iii) STUDY.—

22 ‘‘(I) IN GENERAL.—An institu23 tion of higher education that receives 

24 a grant under this paragraph shall 

25 conduct a study to evaluate the im-
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1 pacts, if any, of the financial and eco2 nomic literacy and counseling activi3 ties on students’ levels of savings and 

4 indebtedness, and creditworthiness, 

5 and such activities’ effectiveness in re6 ducing the incidence of problems with 

7 handling credit, including bankruptcy 

8 filing and student financial loan de9 fault. 

10 ‘‘(II) ASSISTANCE.—An institu11 tion of higher education may conduct 

12 the study under subclause (I) with the 

13 assistance of appropriate Federal 

14 agencies or other entities approved by 

15 the Secretary. 

16 ‘‘(III) REPORT.—Not later than 

17 6 months after completion of the 

18 study under subclause (I), the institu19 tion of higher education shall report 

20 the results of such study to the Sec21 retary, the Secretary of the Treasury, 

22 the Committee on Health, Education, 

23 Labor, and Pensions of the Senate, 

24 the Committee on Banking, Housing, 

25 and Urban Affairs of the Senate, the
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1 Committee on Education and the 

2 Workforce of the House of Represent3 atives, and the Committee on Finan4 cial Services of the House of Rep5 resentatives. 

6 ‘‘(D) DURATION.—Grants awarded under 

7 this paragraph shall be for a period of 3 years. 

8 ‘‘(E) AMOUNT.—The Secretary shall award 

9 grants of not more than $1,000,000 annually to 

10 each institution of higher education awarded a 

11 grant under this paragraph. The Secretary may 

12 determine the grant award amount based on 

13 the number of students to be counseled at the 

14 institution of higher education. 

15 ‘‘(F) REPORT.—Not later than 90 days 

16 after the date of completion of the pilot pro17 gram under this paragraph, the Secretary shall 

18 submit a report to Congress on the effectiveness 

19 of the program. 

20 ‘‘(G) AUTHORIZATION OF APPROPRIA21 TIONS.—There is authorized to be appropriated 

22 to carry out this paragraph such sums as may 

23 be necessary for each of fiscal years 2005 

24 through 2009.’’; and 
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1 (C) in subsection (c), by adding at the end 

2 the following: ‘‘Appropriate Federal agencies 

3 shall provide material developed by such agen4 cies for the purpose of financial education, to fi5 nancial assistance information personnel at in6 stitutions of higher education for the use of 

7 such personnel in financial aid counseling.’’; 

8 and 

9 (19) in section 491(d)(8), by inserting ‘‘, in10 cluding those related to financial literacy activities,’’ 

11 after ‘‘resources and services’’. 

12 SEC. 5. GRANT PROGRAMS. 

13 (a) INNOVATIVE DELIVERY SYSTEMS.—

14 (1) DEFINITIONS.—In this subsection: 

15 (A) DELIVERY SYSTEM.—The term ‘‘deliv16 ery system’’ means any range of media or 

17 methods that institutions of higher education 

18 use to instruct or to convey information to the 

19 students enrolled at such institutions. 

20 (B) ELIGIBLE ENTITY.—The term ‘‘eligible 

21 entity’’—

22 (i) means an institution of higher edu23 cation; and 
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1 (ii) includes an institution of higher 

2 education in partnership with a public, pri3 vate, or nonprofit entity. 

4 (C) INSTITUTION OF HIGHER EDU5 CATION.—The term ‘‘institution of higher edu6 cation’’ has the meaning given the term in sec7 tion 101 of the Higher Education Act of 1965 

8 (20 U.S.C. 1001). 

9 (D) SECRETARY.—The term ‘‘Secretary’’ 

10 means the Secretary of Education. 

11 (2) AUTHORIZATION.—From funds appro12 priated under paragraph (10), the Secretary shall 

13 award grants, on a competitive basis, to eligible enti14 ties to enable such entities to develop or sponsor ex15 perimental financial literacy delivery systems. 

16 (3) APPLICATION.—

17 (A) IN GENERAL.—An eligible entity that 

18 desires to receive a grant under this subsection 

19 shall submit an application to the Secretary at 

20 such time, in such manner, and containing such 

21 information as the Secretary may require. 

22 (B) CONTENT.—An application submitted 

23 under subparagraph (A) shall include—

24 (i) a description of the plan for the 

25 development or sponsorship of the financial 
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1 literacy delivery system the eligible entity 

2 intends to support with grant funds re3 ceived under this subsection; 

4 (ii) information on the students ex5 pected to be served by such system; and 

6 (iii) information on the means by 

7 which the effectiveness of such system will 

8 be measured. 

9 (4) AWARDING OF GRANTS.—In awarding 

10 grants under this subsection, the Secretary shall—

11 (A) give priority to eligible entities that 

12 take measures to ban or discourage the pro13 liferation of credit cards and abusive credit 

14 marketing practices on campus; and 

15 (B) consider—

16 (i) the quality of the proposed finan17 cial literacy delivery system and the degree 

18 to which such system may be used as a 

19 model for adoption by other institutions of 

20 higher education; 

21 (ii) the resources, if any, that the eli22 gible entity intends to dedicate to the im23 plementation of the plan for the develop24 ment or sponsorship of such system; 
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1 (iii) the degree to which technology is 

2 to be used in the implementation of such 

3 plan; and 

4 (iv) the degree to which the eligible 

5 entity will collaborate with other entities in 

6 implementing such plan. 

7 (5) USE OF FUNDS.—An eligible entity awarded 

8 a grant under this subsection shall use the grant 

9 funds—

10 (A) to develop or sponsor an experimental 

11 financial literacy delivery system; and 

12 (B) for activities that explore and assess 

13 the effectiveness of various delivery systems in 

14 delivering personal financial education and 

15 counseling to students and in increasing stu16 dent personal financial literacy. 

17 (6) OBLIGATION.—Grant funds received under 

18 this subsection shall be available for obligation for a 

19 period of not more than 4 years. 

20 (7) TECHNICAL ASSISTANCE.—From not more 

21 than 5 percent of the funds appropriated to carry 

22 out this subsection, the Secretary shall make tech23 nical assistance available to eligible entities that re24 ceive grants under this subsection.
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1 (8) REPORT.—An eligible entity that receives a 

2 grant under this subsection shall submit a report—

3 (A) on an annual basis, to the Secretary 

4 on the effectiveness of the financial literacy de5 livery system; and 

6 (B) at the end of the grant period, to the 

7 appropriate committees of Congress on the ef8 fectiveness of the financial literacy delivery sys9 tem. 

10 (9) REGULATIONS.—The Secretary shall pro11 mulgate regulations to carry out this subsection. 

12 (10) AUTHORIZATION OF APPROPRIATIONS.—

13 There is authorized to be appropriated to carry out 

14 this subsection $5,000,000 for each of fiscal years 

15 2005 through 2009. 

16 (b) PERSONAL FINANCE COURSE.—

17 (1) DEFINITIONS.—In this subsection: 

18 (A) ELIGIBLE ENTITY.—The term ‘‘eligible 

19 entity’’—

20 (i) means an institution of higher edu21 cation; and 

22 (ii) includes an institution of higher 

23 education in partnership with a public, pri24 vate, or nonprofit entity. 
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1 (B) INSTITUTION OF HIGHER EDU2 CATION.—The term ‘‘institution of higher edu3 cation’’ has the meaning given the term in sec4 tion 101 of the Higher Education Act of 1965 

5 (20 U.S.C. 1001). 

6 (C) SECRETARY.—The term ‘‘Secretary’’ 

7 means the Secretary of Education. 

8 (2) AUTHORIZATION.—From funds appro9 priated under paragraph (8), the Secretary shall 

10 award grants, on a competitive basis, to eligible enti11 ties to enable such entities to—

12 (A) if such entities do not offer a course 

13 in personal finance, create a course in personal 

14 finance; or 

15 (B) if such entities offer a course in per16 sonal finance, share best practices and related 

17 information with other institutions of higher 

18 education about successful personal finance 

19 courses. 

20 (3) APPLICATION.—

21 (A) IN GENERAL.—An eligible entity that 

22 desires to receive a grant under this subsection 

23 shall submit an application to the Secretary at 

24 such time, in such manner, and containing such 

25 information as the Secretary may require. 
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1 (B) CONTENT.—An application submitted 

2 under subparagraph (A) shall include—

3 (i) if the entity intends to create a 

4 course in personal finance with grant 

5 funds received under this subsection, infor6 mation on the number of students who 

7 could enroll in such course and the ex8 pected outcomes of the course; or 

9 (ii) if the entity already offers a 

10 course in personal finance, information on 

11 how the institution will share its best prac12 tices with other institutions. 

13 (4) AWARDING OF GRANTS.—In awarding 

14 grants under this subsection, the Secretary shall give 

15 priority to eligible entities that take measures to ban 

16 or discourage the proliferation of credit cards and 

17 abusive credit marketing practices on campus. 

18 (5) OBLIGATION.—Grant funds received under 

19 this subsection shall be available for obligation for a 

20 period of not more than 3 years. 

21 (6) REPORT.—An eligible entity that receives a 

22 grant under this subsection shall submit a report—

23 (A) on an annual basis, to the Secretary 

24 on the effectiveness of the personal finance 

25 course in increasing the personal financial lit-
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1 eracy of students who complete such course; 

2 and 

3 (B) at the end of the grant period, to the 

4 appropriate committees of Congress on the ef5 fectiveness of the personal finance course in in6 creasing the personal financial literacy of stu7 dents who complete such course. 

8 (7) REGULATIONS.—The Secretary shall pro9 mulgate regulations to carry out this subsection. 

10 (8) AUTHORIZATION OF APPROPRIATIONS.—

11 There is authorized to be appropriated to carry out 

12 this subsection $5,000,000 for each of fiscal years 

13 2005 through 2009. 

14 (c) INTEGRATION.—

15 (1) AUTHORIZATION.—From funds appro16 priated under paragraph (6), the Secretary of Edu17 cation (referred to in this subsection as the ‘‘Sec18 retary’’) shall award a grant, on a competitive basis, 

19 to a nonprofit organization, or a consortium of non20 profit organizations, working in partnership with rel21 evant Federal agencies, educational organizations, 

22 and other nonprofit organizations, to study and rec23 ommend the best ways to integrate personal finance 

24 and economics into basic educational subjects. 
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1 (2) APPLICATION.—A nonprofit organization, or 

2 consortium of nonprofit organizations, that desires 

3 to receive the grant under this subsection shall sub4 mit an application to the Secretary at such time, in 

5 such manner, and containing such information as 

6 the Secretary may require. 

7 (3) AWARDING OF GRANTS.—In awarding the 

8 grant under this subsection, the Secretary shall—

9 (A) give priority to an applicant that has 

10 as its primary purpose the improvement of the 

11 quality of student understanding of personal fi12 nance and economics; and 

13 (B) consider—

14 (i) the previous record of work of the 

15 applicant in improving the quality of stu16 dent understanding of personal finance 

17 and economics; and 

18 (ii) the degree to which the applicant 

19 has collaborated with other entities that 

20 have as their primary purpose the improve21 ment of the quality of student under22 standing of personal finance and econom23 ics. 

24 (4) REPORT.—Not later than 2 years after the 

25 grant funds have been distributed under this sub-
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1 section, the nonprofit organization, or consortium of 

2 nonprofit organizations, that receives the grant 

3 under this subsection shall submit to the Secretary 

4 and the appropriate committees of Congress a report 

5 on the best ways to integrate personal finance and 

6 economics into basic educational subjects. 

7 (5) REGULATIONS.—The Secretary shall pro8 mulgate regulations to carry out this subsection. 

9 (6) AUTHORIZATION OF APPROPRIATIONS.—

10 There is authorized to be appropriated to carry out 

11 this subsection $1,000,000 for each of fiscal years 

12 2005 through 2007. 

13 (d) TEACHER AND COUNSELOR TRAINING.—

14 (1) DEFINITIONS.—In this subsection: 

15 (A) ELIGIBLE ENTITY.—The term ‘‘eligible 

16 entity’’—

17 (i) means—

18 (I) an education department of 

19 an institution of higher education; or 

20 (II) an organization described in 

21 section 501(c)(3) of the Internal Rev22 enue Code of 1986, that has as its 

23 primary purpose the improvement of 

24 the quality of student understanding
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1 of personal finance and economics 

2 through effective teaching; and 

3 (ii) includes a partnership of the enti4 ties described in clause (i). 

5 (B) INSTITUTION OF HIGHER EDU6 CATION.—The term ‘‘institution of higher edu7 cation’’ has the meaning given the term in sec8 tion 101 of the Higher Education Act of 1965 

9 (20 U.S.C. 1001). 

10 (C) SECRETARY.—The term ‘‘Secretary’’ 

11 means the Secretary of Education. 

12 (D) STATE.—The term ‘‘State’’ means 

13 each of the 50 States, the District of Columbia, 

14 the Commonwealth of Puerto Rico, the United 

15 States Virgin Islands, Guam, American Samoa, 

16 the Commonwealth of the Northern Mariana Is17 lands, the freely associated states of the Repub18 lic of the Marshall Islands, the Federated 

19 States of Micronesia, and the Republic of 

20 Palau. 

21 (2) AUTHORIZATION.—From funds appro22 priated under paragraph (10), the Secretary shall 

23 award grants, on a competitive basis, to eligible enti24 ties to enable the entities to fund—
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1 (A) preservice teacher training programs in 

2 the instruction of economics and personal fi3 nance in elementary schools and secondary 

4 schools; and 

5 (B) programs to provide preservice and in6 service training of secondary school counselors 

7 in advising students on the importance of im8 proving their economic and personal financial 

9 literacy. 

10 (3) APPLICATION.—

11 (A) IN GENERAL.—An eligible entity that 

12 desires to receive a grant under this subsection 

13 shall submit an application to the Secretary at 

14 such time, in such manner, and containing such 

15 information as the Secretary may require. 

16 (B) CONTENT.—An application submitted 

17 under subparagraph (A) shall include informa18 tion on—

19 (i) the number of individuals who 

20 would be served by the eligible entity if 

21 awarded a grant under this subsection; and 

22 (ii) the expected outcomes of the pro23 posed training. 

24 (4) AWARDING OF GRANTS.—
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1 (A) IN GENERAL.—In awarding grants 

2 under this subsection, the Secretary shall—

3 (i) give priority to eligible entities that 

4 take measures to ban or discourage the 

5 proliferation of credit cards and abusive 

6 credit marketing practices on campus; and 

7 (ii) consider the applicant’s past 

8 record of success in carrying out similar 

9 training programs. 

10 (B) GRANTS TO ALL STATES.—For any 

11 fiscal year for which the amount appropriated 

12 to carry out this paragraph is more than 

13 $25,000,000, the Secretary shall award not less 

14 than 1 grant to an eligible entity in each State. 

15 (5) COORDINATION WITH EXISTING PRO16 GRAMS.—In carrying out programs funded under 

17 this subsection, an eligible entity may coordinate ac18 tivities with other training programs, including pro19 grams authorized under the Excellence in Economic 

20 Education Act of 2001 (20 U.S.C. 7267 et seq.). 

21 (6) SUPPLEMENT, NOT SUPPLANT.—Grant 

22 funds received under this subsection shall be used to 

23 supplement, and not supplant, non-Federal funds 

24 available to the eligible entity for the purpose of car25 rying out similar training programs. 
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1 (7) OBLIGATION.—Grant funds received under 

2 this subsection shall be available for obligation for a 

3 period of not more than 3 years. 

4 (8) REPORT.—An eligible entity that receives a 

5 grant under this subsection shall submit a report—

6 (A) on an annual basis, to the Secretary 

7 on the effectiveness of training teachers and 

8 counselors in instructing and advising students 

9 on personal finance; and 

10 (B) at the end of the grant period, to the 

11 appropriate committees of Congress on the ef12 fectiveness of training teachers and counselors 

13 in instructing and advising students on personal 

14 finance. 

15 (9) REGULATIONS.—The Secretary shall pro16 mulgate regulations to carry out this subsection. 

17 (10) AUTHORIZATION OF APPROPRIATIONS.—

18 There is authorized to be appropriated to carry out 

19 this subsection $10,000,000 for each of fiscal years 

20 2005 through 2009. 

21 SEC. 6. EVALUATION. 

22 Not later than 6 years after the date of enactment 

23 of this Act, the Comptroller General of the United States 

24 shall submit to the Committee on Health, Education, 

25 Labor, and Pensions of the Senate, the Committee on 
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1 Banking, Housing, and Urban Affairs of the Senate, the 

2 Committee on Education and the Workforce of the House 

3 of Representatives, and the Committee on Financial Serv4 ices of the House of Representatives, an evaluation of the 

5 range and effectiveness of financial and economic edu6 cation and financial aid counseling activities of institutions 

7 of higher education, lenders, servicers, and guaranty agen8 cies as emphasized by the Secretary of Education pursu9 ant to section 123 of the Higher Education Act of 1965.

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