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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1800 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Literacy in Finance and 
Economics (College LIFE) Act''.

SEC. 2. AREAS OF EMPHASIS.

    Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 
1011 et seq.) is amended by adding at the end the following:

``SEC. 123. AREAS OF EMPHASIS.

    ``In carrying out activities under this Act related to improving 
financial and economic literacy, education, and counseling, the 
Secretary shall emphasize, among other elements, basic personal income 
and household money management and financial planning skills, and basic 
economic decision making skills, including how to--
            ``(1) create household budgets, initiate savings plans, and 
        make strategic investment decisions for education, employment, 
        retirement, home ownership, wealth building, or other savings 
        goals;
            ``(2) manage credit and debt effectively, including student 
        financial aid and credit card debt, and understand the merits 
        of establishing and maintaining excellent credit history;
            ``(3) understand, evaluate, and compare fair and favorable 
        financial products, services, and opportunities, and avoid 
        abusive, predatory, or deceptive financial products, services, 
        and opportunities;
            ``(4) complete tax returns and understand tax consequences 
        when making certain financial decisions, such as placing an 
        investment or purchasing a home;
            ``(5) identify economic problems, alternatives, benefits, 
        and costs;
            ``(6) analyze the incentives at work in an economic 
        situation;
            ``(7) examine the consequences of changes in economic 
        conditions and public policies;
            ``(8) collect and organize economic evidence, including 
        understanding, evaluating, and making strategic decisions using 
        economic indicators;
            ``(9) compare benefits with costs; and
            ``(10) improve financial and economic literacy and 
        education through all other related skills.''.

SEC. 3. COORDINATION.

    In carrying out the financial and economic literacy activities 
authorized under this Act and the amendments made by this Act, the 
Secretary of Education, to the greatest extent practicable, shall 
coordinate such activities with the financial and economic literacy 
efforts of a Federal commission comprised of members from the 
Department of Education, the Department of the Treasury, and other 
entities the President, the Secretary of Education, and the Secretary 
of the Treasury determine appropriate.

SEC. 4. ENHANCEMENT OF FINANCIAL LITERACY AND ECONOMIC LITERACY.

    The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 201(a)(3), by inserting ``personal 
        finance,'' after ``economics,'';
            (2) in section 311(c)--
                    (A) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents.'';
            (3) in section 316(c)(2)--
                    (A) by redesignating subparagraphs (G) through (L) 
                as subparagraphs (H) through (M), respectively;
                    (B) by inserting after subparagraph (F) the 
                following:
                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and their parents;''; and
                    (C) in subparagraph (M), as redesignated by 
                subparagraph (A), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (L)'';
            (4) in section 317(c)(2)--
                    (A) in subparagraph (G), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (H), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(I) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and their parents.'';
            (5) in section 323(a)--
                    (A) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents.'';
            (6) in section 326(c)--
                    (A) by redesignating paragraphs (5) through (7) as 
                paragraphs (6) through (8), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents;'';
            (7) in section 503(b)--
                    (A) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents.'';
            (8) in section 402B(b)--
                    (A) by redesignating paragraphs (3) through (10) as 
                paragraphs (4) through (11), respectively;
                    (B) by inserting after paragraph (2) the following:
            ``(3) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (9) in section 402C--
                    (A) in subsection (b)--
                            (i) by redesignating paragraphs (2) through 
                        (12) as paragraphs (3) through (13), 
                        respectively;
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents;''; and
                            (iii) in paragraph (13), as redesignated by 
                        clause (i), by striking ``paragraphs (1) 
                        through (11)'' and inserting ``paragraphs (1) 
                        through (12)''; and
                    (B) in subsection (e), by striking ``subsection 
                (b)(10)'' and inserting ``subsection (b)(11)'';
            (10) in section 402D(b)--
                    (A) by redesignating paragraphs (2) through (10) as 
                paragraphs (3) through (11), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (11) in section 402E(b)--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (8) and (9), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents;'';
            (12) in section 402F(b)--
                    (A) by redesignating paragraphs (4) through (10) as 
                paragraphs (5) through (11), respectively;
                    (B) by inserting after paragraph (3) the following:
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and 
        their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (13) in section 404D(b)(2)(A)(ii), by striking ``and 
        academic counseling'' and inserting ``academic counseling, and 
        financial literacy and economic literacy education or 
        counseling'';
            (14) by striking section 418A(c)(1)(B)(i) and inserting the 
        following:
                    ``(i) personal, academic, career, and economic 
                education or personal finance counseling as an ongoing 
                part of the program;'';
            (15) in section 428F(b), by inserting at the end the 
        following: ``Where appropriate, such program shall include 
        making available financial and economic education materials for 
        the borrower.'';
            (16) in section 432(k)(1), by striking ``and offering'' and 
        all that follows through the period and inserting ``, offering 
        loan repayment matching provisions as part of employee benefit 
        packages, and providing employees with financial and economic 
        education and counseling.'';
            (17) in section 441(c)--
                    (A) in paragraph (1), by inserting ``financial 
                literacy and economic literacy,'' after ``social 
                services,''; and
                    (B) in paragraph (4)(C), by striking the period at 
                the end and inserting ``and counseling for the purposes 
                of improving financial literacy and economic 
                literacy.'';
            (18) in section 485--
                    (A) in subsection (a)(1)(D), by striking the 
                semicolon at the end and inserting ``, including the 
                merits of taking a personal finance course, if the 
                institution offers such a course, and of the student 
                reviewing the student's personal credit profile not 
                less frequently than once a year;'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)(A)--
                                    (I) in clause (i), by striking 
                                ``and'' after the semicolon;
                                    (II) in clause (ii), by striking 
                                the period at the end and inserting ``; 
                                and''; and
                                    (III) by adding at the end the 
                                following:
                            ``(iii) if it is determined during the 
                        counseling that the borrower is not connected 
                        to a mainstream financial institution, 
                        information about low-cost financial services 
                        and the benefits of using such services, and 
                        where and how the borrower could open a low-
                        cost account in a federally insured credit 
                        union or bank.''; and
                            (ii) by adding at the end the following:
            ``(3) Pilot program.--
                    ``(A) Authorization.--
                            ``(i) In general.--The Secretary shall 
                        establish a pilot program that awards a total 
                        of 5 grants to 5 different institutions of 
                        higher education that are located in 
                        geographically different parts of the United 
                        States to enable the institutions to provide 
                        annual personal finance counseling for students 
                        enrolled at such institutions.
                            ``(ii) Minority serving institutions.--In 
                        awarding grants under this paragraph, the 
                        Secretary shall award not less than 2 of the 5 
                        grants to institutions of higher education that 
                        are eligible to receive assistance under title 
                        III or title V.
                    ``(B) Application.--An institution of higher 
                education that desires to receive a grant under this 
                paragraph shall submit an application to the Secretary 
                at such time, in such manner, and containing such 
                information as the Secretary may require.
                    ``(C) Use of funds.--
                            ``(i) Counseling.--
                                    ``(I) In general.--In addition to 
                                making available exit counseling under 
                                paragraph (1), an institution of higher 
                                education that receives a grant under 
                                this paragraph shall through financial 
                                aid officers or otherwise, make 
                                available counseling to borrowers of 
                                loans which are made, insured, or 
                                guaranteed under part B (other than 
                                loans made pursuant to section 428B) of 
                                this title or made under part D or E of 
                                this title at the commencement of the 
                                borrower's course of study at the 
                                institution, not less frequently than 
                                once annually while the borrower is 
                                enrolled at the institution, and not 
                                later than 30 days after completion of 
                                the course of study for which the 
                                borrower enrolled at the institution or 
                                at the time of departure from such 
                                institution.
                                    ``(II) Content.--The counseling 
                                required under subclause (I) shall 
                                include the average anticipated monthly 
                                repayments, a review of the repayment 
                                options available, the total amount of 
                                interest that would be paid over a 
                                range of possible interest rates and 
                                the amount of interest in the monthly 
                                payments, information on the 
                                availability and content of a personal 
                                finance course if such course is 
                                offered by the institution and if not 
                                already completed by the individual, 
                                and such debt and management strategies 
                                as the institution determines are 
                                designed to facilitate the repayment of 
                                such indebtedness, which may be 
                                implemented in partnership with State 
                                or local public, private, and nonprofit 
                                entities approved by the local 
                                educational agency that serves schools 
                                in the area where the institution is 
                                located, or a campus committee formed 
                                for the purpose of evaluating the 
                                qualifications of such entities. If it 
                                is determined during the counseling 
                                that the borrower is not connected to a 
                                mainstream financial institution, the 
                                counseling shall include information 
                                about low-cost financial services and 
                                the benefits of using such services, 
                                and where and how the borrower could 
                                open a low-cost account in a federally 
                                insured credit union or bank.
                            ``(ii) Permissive use.--Grant funds 
                        received under this paragraph may be used to 
                        pay for additional financial aid personnel or 
                        for training for existing financial aid 
                        personnel.
                            ``(iii) Study.--
                                    ``(I) In general.--An institution 
                                of higher education that receives a 
                                grant under this paragraph shall 
                                conduct a study to evaluate the 
                                impacts, if any, of the financial and 
                                economic literacy and counseling 
                                activities on students' levels of 
                                savings and indebtedness, and 
                                creditworthiness, and such activities' 
                                effectiveness in reducing the incidence 
                                of problems with handling credit, 
                                including bankruptcy filing and student 
                                financial loan default.
                                    ``(II) Assistance.--An institution 
                                of higher education may conduct the 
                                study under subclause (I) with the 
                                assistance of appropriate Federal 
                                agencies or other entities approved by 
                                the Secretary.
                                    ``(III) Report.--Not later than 6 
                                months after completion of the study 
                                under subclause (I), the institution of 
                                higher education shall report the 
                                results of such study to the Secretary, 
                                the Secretary of the Treasury, the 
                                Committee on Health, Education, Labor, 
                                and Pensions of the Senate, the 
                                Committee on Banking, Housing, and 
                                Urban Affairs of the Senate, 
the Committee on Education and the Workforce of the House of 
Representatives, and the Committee on Financial Services of the House 
of Representatives.
                    ``(D) Duration.--Grants awarded under this 
                paragraph shall be for a period of 3 years.
                    ``(E) Amount.--The Secretary shall award grants of 
                not more than $1,000,000 annually to each institution 
                of higher education awarded a grant under this 
                paragraph. The Secretary may determine the grant award 
                amount based on the number of students to be counseled 
                at the institution of higher education.
                    ``(F) Report.--Not later than 90 days after the 
                date of completion of the pilot program under this 
                paragraph, the Secretary shall submit a report to 
                Congress on the effectiveness of the program.
                    ``(G) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph such sums as may be necessary for each of 
                fiscal years 2005 through 2009.''; and
                    (C) in subsection (c), by adding at the end the 
                following: ``Appropriate Federal agencies shall provide 
                material developed by such agencies for the purpose of 
                financial education, to financial assistance 
                information personnel at institutions of higher 
                education for the use of such personnel in financial 
                aid counseling.''; and
            (19) in section 491(d)(8), by inserting ``, including those 
        related to financial literacy activities,'' after ``resources 
        and services''.

SEC. 5. GRANT PROGRAMS.

    (a) Innovative Delivery Systems.--
            (1) Definitions.--In this subsection:
                    (A) Delivery system.--The term ``delivery system'' 
                means any range of media or methods that institutions 
                of higher education use to instruct or to convey 
                information to the students enrolled at such 
                institutions.
                    (B) Eligible entity.--The term ``eligible 
                entity''--
                            (i) means an institution of higher 
                        education; and
                            (ii) includes an institution of higher 
                        education in partnership with a public, 
                        private, or nonprofit entity.
                    (C) Institution of higher education.--The term 
                ``institution of higher education'' has the meaning 
                given the term in section 101 of the Higher Education 
                Act of 1965 (20 U.S.C. 1001).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of Education.
            (2) Authorization.--From funds appropriated under paragraph 
        (10), the Secretary shall award grants, on a competitive basis, 
        to eligible entities to enable such entities to develop or 
        sponsor experimental financial literacy delivery systems.
            (3) Application.--
                    (A) In general.--An eligible entity that desires to 
                receive a grant under this subsection shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    (B) Content.--An application submitted under 
                subparagraph (A) shall include--
                            (i) a description of the plan for the 
                        development or sponsorship of the financial 
                        literacy delivery system the eligible entity 
                        intends to support with grant funds received 
                        under this subsection;
                            (ii) information on the students expected 
                        to be served by such system; and
                            (iii) information on the means by which the 
                        effectiveness of such system will be measured.
            (4) Awarding of grants.--In awarding grants under this 
        subsection, the Secretary shall--
                    (A) give priority to eligible entities that take 
                measures to ban or discourage the proliferation of 
                credit cards and abusive credit marketing practices on 
                campus; and
                    (B) consider--
                            (i) the quality of the proposed financial 
                        literacy delivery system and the degree to 
                        which such system may be used as a model for 
                        adoption by other institutions of higher 
                        education;
                            (ii) the resources, if any, that the 
                        eligible entity intends to dedicate to the 
                        implementation of the plan for the development 
                        or sponsorship of such system;
                            (iii) the degree to which technology is to 
                        be used in the implementation of such plan; and
                            (iv) the degree to which the eligible 
                        entity will collaborate with other entities in 
                        implementing such plan.
            (5) Use of funds.--An eligible entity awarded a grant under 
        this subsection shall use the grant funds--
                    (A) to develop or sponsor an experimental financial 
                literacy delivery system; and
                    (B) for activities that explore and assess the 
                effectiveness of various delivery systems in delivering 
                personal financial education and counseling to students 
                and in increasing student personal financial literacy.
            (6) Obligation.--Grant funds received under this subsection 
        shall be available for obligation for a period of not more than 
        4 years.
            (7) Technical assistance.--From not more than 5 percent of 
        the funds appropriated to carry out this subsection, the 
        Secretary shall make technical assistance available to eligible 
        entities that receive grants under this subsection.
            (8) Report.--An eligible entity that receives a grant under 
        this subsection shall submit a report--
                    (A) on an annual basis, to the Secretary on the 
                effectiveness of the financial literacy delivery 
                system; and
                    (B) at the end of the grant period, to the 
                appropriate committees of Congress on the effectiveness 
                of the financial literacy delivery system.
            (9) Regulations.--The Secretary shall promulgate 
        regulations to carry out this subsection.
            (10) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $5,000,000 for 
        each of fiscal years 2005 through 2009.
    (b) Personal Finance Course.--
            (1) Definitions.--In this subsection:
                    (A) Eligible entity.--The term ``eligible 
                entity''--
                            (i) means an institution of higher 
                        education; and
                            (ii) includes an institution of higher 
                        education in partnership with a public, 
                        private, or nonprofit entity.
                    (B) Institution of higher education.--The term 
                ``institution of higher education'' has the meaning 
                given the term in section 101 of the Higher Education 
                Act of 1965 (20 U.S.C. 1001).
                    (C) Secretary.--The term ``Secretary'' means the 
                Secretary of Education.
            (2) Authorization.--From funds appropriated under paragraph 
        (8), the Secretary shall award grants, on a competitive basis, 
        to eligible entities to enable such entities to--
                    (A) if such entities do not offer a course in 
                personal finance, create a course in personal finance; 
                or
                    (B) if such entities offer a course in personal 
                finance, share best practices and related information 
                with other institutions of higher education about 
                successful personal finance courses.
            (3) Application.--
                    (A) In general.--An eligible entity that desires to 
                receive a grant under this subsection shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    (B) Content.--An application submitted under 
                subparagraph (A) shall include--
                            (i) if the entity intends to create a 
                        course in personal finance with grant funds 
                        received under this subsection, information on 
                        the number of students who could enroll in such 
                        course and the expected outcomes of the course; 
                        or
                            (ii) if the entity already offers a course 
                        in personal finance, information on how the 
                        institution will share its best practices with 
                        other institutions.
            (4) Awarding of grants.--In awarding grants under this 
        subsection, the Secretary shall give priority to eligible 
        entities that take measures to ban or discourage the 
        proliferation of credit cards and abusive credit marketing 
        practices on campus.
            (5) Obligation.--Grant funds received under this subsection 
        shall be available for obligation for a period of not more than 
        3 years.
            (6) Report.--An eligible entity that receives a grant under 
        this subsection shall submit a report--
                    (A) on an annual basis, to the Secretary on the 
                effectiveness of the personal finance course in 
                increasing the personal financial literacy of students 
                who complete such course; and
                    (B) at the end of the grant period, to the 
                appropriate committees of Congress on the effectiveness 
                of the personal finance course in increasing the 
                personal financial literacy of students who complete 
                such course.
            (7) Regulations.--The Secretary shall promulgate 
        regulations to carry out this subsection.
            (8) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $5,000,000 for 
        each of fiscal years 2005 through 2009.
    (c) Integration.--
            (1) Authorization.--From funds appropriated under paragraph 
        (6), the Secretary of Education (referred to in this subsection 
        as the ``Secretary'') shall award a grant, on a competitive 
        basis, to a nonprofit organization, or a consortium of 
        nonprofit organizations, working in partnership with relevant 
        Federal agencies, educational organizations, and other 
        nonprofit organizations, to study and recommend the best ways 
        to integrate personal finance and economics into basic 
        educational subjects.
            (2) Application.--A nonprofit organization, or consortium 
        of nonprofit organizations, that desires to receive the grant 
        under this subsection shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            (3) Awarding of grants.--In awarding the grant under this 
        subsection, the Secretary shall--
                    (A) give priority to an applicant that has as its 
                primary purpose the improvement of the quality of 
                student understanding of personal finance and 
                economics; and
                    (B) consider--
                            (i) the previous record of work of the 
                        applicant in improving the quality of student 
                        understanding of personal finance and 
                        economics; and
                            (ii) the degree to which the applicant has 
                        collaborated with other entities that have as 
                        their primary purpose the improvement of the 
                        quality of student understanding of personal 
                        finance and economics.
            (4) Report.--Not later than 2 years after the grant funds 
        have been distributed under this subsection, the nonprofit 
        organization, or consortium of nonprofit organizations, that 
        receives the grant under this subsection shall submit to the 
        Secretary and the appropriate committees of Congress a report 
        on the best ways to integrate personal finance and economics 
        into basic educational subjects.
            (5) Regulations.--The Secretary shall promulgate 
        regulations to carry out this subsection.
            (6) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        each of fiscal years 2005 through 2007.
    (d) Teacher and Counselor Training.--
            (1) Definitions.--In this subsection:
                    (A) Eligible entity.--The term ``eligible 
                entity''--
                            (i) means--
                                    (I) an education department of an 
                                institution of higher education; or
                                    (II) an organization described in 
                                section 501(c)(3) of the Internal 
                                Revenue Code of 1986, that has as its 
                                primary purpose the improvement of the 
                                quality of student understanding of 
personal finance and economics through effective teaching; and
                            (ii) includes a partnership of the entities 
                        described in clause (i).
                    (B) Institution of higher education.--The term 
                ``institution of higher education'' has the meaning 
                given the term in section 101 of the Higher Education 
                Act of 1965 (20 U.S.C. 1001).
                    (C) Secretary.--The term ``Secretary'' means the 
                Secretary of Education.
                    (D) State.--The term ``State'' means each of the 50 
                States, the District of Columbia, the Commonwealth of 
                Puerto Rico, the United States Virgin Islands, Guam, 
                American Samoa, the Commonwealth of the Northern 
                Mariana Islands, the freely associated states of the 
                Republic of the Marshall Islands, the Federated States 
                of Micronesia, and the Republic of Palau.
            (2) Authorization.--From funds appropriated under paragraph 
        (10), the Secretary shall award grants, on a competitive basis, 
        to eligible entities to enable the entities to fund--
                    (A) preservice teacher training programs in the 
                instruction of economics and personal finance in 
                elementary schools and secondary schools; and
                    (B) programs to provide preservice and inservice 
                training of secondary school counselors in advising 
                students on the importance of improving their economic 
                and personal financial literacy.
            (3) Application.--
                    (A) In general.--An eligible entity that desires to 
                receive a grant under this subsection shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    (B) Content.--An application submitted under 
                subparagraph (A) shall include information on--
                            (i) the number of individuals who would be 
                        served by the eligible entity if awarded a 
                        grant under this subsection; and
                            (ii) the expected outcomes of the proposed 
                        training.
            (4) Awarding of grants.--
                    (A) In general.--In awarding grants under this 
                subsection, the Secretary shall--
                            (i) give priority to eligible entities that 
                        take measures to ban or discourage the 
                        proliferation of credit cards and abusive 
                        credit marketing practices on campus; and
                            (ii) consider the applicant's past record 
                        of success in carrying out similar training 
                        programs.
                    (B) Grants to all states.--For any fiscal year for 
                which the amount appropriated to carry out this 
                paragraph is more than $25,000,000, the Secretary shall 
                award not less than 1 grant to an eligible entity in 
                each State.
            (5) Coordination with existing programs.--In carrying out 
        programs funded under this subsection, an eligible entity may 
        coordinate activities with other training programs, including 
        programs authorized under the Excellence in Economic Education 
        Act of 2001 (20 U.S.C. 7267 et seq.).
            (6) Supplement, not supplant.--Grant funds received under 
        this subsection shall be used to supplement, and not supplant, 
        non-Federal funds available to the eligible entity for the 
        purpose of carrying out similar training programs.
            (7) Obligation.--Grant funds received under this subsection 
        shall be available for obligation for a period of not more than 
        3 years.
            (8) Report.--An eligible entity that receives a grant under 
        this subsection shall submit a report--
                    (A) on an annual basis, to the Secretary on the 
                effectiveness of training teachers and counselors in 
                instructing and advising students on personal finance; 
                and
                    (B) at the end of the grant period, to the 
                appropriate committees of Congress on the effectiveness 
                of training teachers and counselors in instructing and 
                advising students on personal finance.
            (9) Regulations.--The Secretary shall promulgate 
        regulations to carry out this subsection.
            (10) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of fiscal years 2005 through 2009.

SEC. 6. EVALUATION.

    Not later than 6 years after the date of enactment of this Act, the 
Comptroller General of the United States shall submit to the Committee 
on Health, Education, Labor, and Pensions of the Senate, the Committee 
on Banking, Housing, and Urban Affairs of the Senate, the Committee on 
Education and the Workforce of the House of Representatives, and the 
Committee on Financial Services of the House of Representatives, an 
evaluation of the range and effectiveness of financial and economic 
education and financial aid counseling activities of institutions of 
higher education, lenders, servicers, and guaranty agencies as 
emphasized by the Secretary of Education pursuant to section 123 of the 
Higher Education Act of 1965.
                                 <all>
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