II 

109TH CONGRESS 

1ST SESSION S. 468 

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 

FEBRUARY 28, 2005 

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 the Financial 

17 Literacy and Education Commission established under 

18 section 513 of the Fair and Accurate Credit Transactions 

19 Act (20 U.S.C. 9702). 

20 SEC. 4. ENHANCEMENT OF FINANCIAL LITERACY AND ECO21 NOMIC LITERACY. 

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

23 et seq.) is amended— 
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1 (1) in section 201(a)(3) (20 U.S.C. 

2 1021(a)(3)), by inserting ‘‘personal finance,’’ after 

3 ‘‘economics,’’; 

4 (2) in section 311(c) (20 U.S.C. 1057(c))— 

5 (A) by redesignating paragraphs (7) 

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

7 respectively; and 

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

9 following: 

10 ‘‘(7) Education or counseling services designed 

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

13 (3) in section 316(c)(2) (20 U.S.C. 

14 1059c(c)(2))— 

15 (A) by redesignating subparagraphs (G) 

16 through (L) as subparagraphs (H) through 

17 (M), respectively; 

18 (B) by inserting after subparagraph (F) 

19 the following: 

20 ‘‘(G) education or counseling services de21 signed to improve the financial literacy and eco22 nomic literacy of students and their parents;’’; 

23 and 

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

25 by subparagraph (A), by striking ‘‘subpara-
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1 graphs (A) through (K)’’ and inserting ‘‘sub2 paragraphs (A) through (L)’’; 

3 (4) in section 317(c)(2) (20 U.S.C. 

4 1059d(c)(2))— 

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

6 ‘‘and’’ after the semicolon; 

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

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

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

10 ‘‘(I) education or counseling services de11 signed to improve the financial literacy and eco12 nomic literacy of students and their parents.’’; 

13 (5) in section 323(a) (20 U.S.C. 1062(a))— 

14 (A) by redesignating paragraphs (7) 

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

16 respectively; and 

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

18 following: 

19 ‘‘(7) Education or counseling services designed 

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

22 (6) in section 326(c) (20 U.S.C. 1063b(c))— 

23 (A) by redesignating paragraphs (5) 

24 through (7) as paragraphs (6) through (8), re25 spectively; and 
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1 (B) by inserting after paragraph (4) the 

2 following: 

3 ‘‘(5) education or counseling services designed 

4 to improve the financial literacy and economic lit5 eracy of students and their parents;’’; 

6 (7) in section 402B(b) (20 U.S.C. 1070a– 

7 12(b))— 

8 (A) by redesignating paragraphs (3) 

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

10 respectively; 

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

12 following: 

13 ‘‘(3) education or counseling services designed 

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

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

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

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

19 through (10)’’; 

20 (8) in section 402C (20 U.S.C. 1070a–13)— 

21 (A) in subsection (b)— 

22 (i) by redesignating paragraphs (2) 

23 through (12) as paragraphs (3) through 

24 (13), respectively; 
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1 (ii) by inserting after paragraph (1) 

2 the following: 

3 ‘‘(2) education or counseling services designed 

4 to improve the financial literacy and economic lit5 eracy of students and their parents;’’; and 

6 (iii) in paragraph (13), as redesig7 nated by clause (i), by striking ‘‘para8 graphs (1) through (11)’’ and inserting 

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

10 (B) in subsection (e), by striking ‘‘sub11 section (b)(10)’’ and inserting ‘‘subsection 

12 (b)(11)’’; 

13 (9) in section 402D(b) (20 U.S.C. 1070a– 

14 14(b))— 

15 (A) by redesignating paragraphs (2) 

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

17 respectively; 

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

19 following: 

20 ‘‘(2) education or counseling services designed 

21 to improve the financial literacy and economic lit22 eracy of students and their parents;’’; and 

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

24 subparagraph (A), by striking ‘‘paragraphs (1) 
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1 through (9)’’ and inserting ‘‘paragraphs (1) 

2 through (10)’’; 

3 (10) in section 402E(b) (20 U.S.C. 1070a– 

4 15(b))— 

5 (A) by redesignating paragraphs (7) and 

6 (8) as paragraphs (8) and (9), 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 (11) in section 402F(b) (20 U.S.C. 1070a– 

13 16(b))— 

14 (A) by redesignating paragraphs (4) 

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

16 respectively; 

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

18 following: 

19 ‘‘(4) 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 (12) in section 404D(b)(2)(A)(ii) (20 U.S.C. 

2 1070a–24(b)(2)(A)(ii)), by striking ‘‘and academic 

3 counseling’’ and inserting ‘‘academic counseling, and 

4 financial literacy and economic literacy education or 

5 counseling’’; 

6 (13) by striking section 418A(c)(1)(B)(i) (20 

7 U.S.C. 1070d–2(c)(1)(B)(i)) and inserting the fol8 lowing: 

9 ‘‘(i) personal, academic, career, and eco10 nomic education or personal finance counseling 

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

12 (14) in section 428F (20 U.S.C. 1078–6), by 

13 adding at the end the following: 

14 ‘‘(c) FINANCIAL AND ECONOMIC LITERACY.—Where 

15 appropriate, each program described under subsection (b) 

16 shall include making available financial and economic edu17 cation materials for the borrower.’’; 

18 (15) in section 432(k)(1) (20 U.S.C. 

19 1082(k)(1)), by striking ‘‘and offering’’ and all that 

20 follows through the period and inserting ‘‘, offering 

21 loan repayment matching provisions as part of em22 ployee benefit packages, and providing employees 

23 with financial and economic education and coun24 seling.’’; 

25 (16) in section 441(c) (42 U.S.C. 2751(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 (17) in section 485 (20 U.S.C. 1092)— 

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 Representa3 tives, and the Committee on Financial 

4 Services of the House of Representa5 tives. 

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 such sums as may be necessary to carry out 

23 this paragraph for each of fiscal years 2006 

24 through 2010. Such funds shall remain avail25 able until expended.’’; 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 (18) in section 491(d)(8) (20 U.S.C. 

9 1098(d)(8)), by inserting ‘‘, including those related 

10 to financial literacy activities,’’ after ‘‘resources and 

11 services’’; and 

12 (19) in section 503(b) (20 U.S.C. 1101b(b))— 

13 (A) by redesignating paragraphs (5) 

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

15 respectively; and 

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

17 following: 

18 ‘‘(5) Education or counseling services designed 

19 to improve the financial literacy and economic lit20 eracy of students and their parents.’’. 

21 SEC. 5. GRANT PROGRAMS. 

22 (a) INNOVATIVE DELIVERY SYSTEMS.— 

23 (1) DEFINITIONS.—In this subsection: 

24 (A) DELIVERY SYSTEM.—The term ‘‘deliv25 ery system’’ means any range of media or 
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1 methods that institutions of higher education 

2 use to instruct or to convey information to the 

3 students enrolled at such institutions. 

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

5 entity’’— 

6 (i) means an institution of higher edu7 cation; and 

8 (ii) includes an institution of higher 

9 education in partnership with a public, pri10 vate, or nonprofit entity. 

11 (C) INSTITUTION OF HIGHER EDU12 CATION.—The term ‘‘institution of higher edu13 cation’’ has the meaning given the term in sec14 tion 101 of the Higher Education Act of 1965 

15 (20 U.S.C. 1001). 

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

17 means the Secretary of Education. 

18 (2) AUTHORIZATION.—From funds appro19 priated under paragraph (10), the Secretary shall 

20 award grants, on a competitive basis, to eligible enti21 ties to enable such entities to develop or sponsor ex22 perimental financial literacy delivery systems. 

23 (3) APPLICATION.— 

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

25 desires to receive a grant under this subsection 
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1 shall submit an application to the Secretary at 

2 such time, in such manner, and containing such 

3 information as the Secretary may require. 

4 (B) CONTENT.—An application submitted 

5 under subparagraph (A) shall include— 

6 (i) a description of the plan for the 

7 development or sponsorship of the financial 

8 literacy delivery system the eligible entity 

9 intends to support with grant funds re10 ceived under this subsection; 

11 (ii) information on the students ex12 pected to be served by such system; and 

13 (iii) information on the means by 

14 which the effectiveness of such system will 

15 be measured. 

16 (4) AWARDING OF GRANTS.—In awarding 

17 grants under this subsection, the Secretary shall— 

18 (A) give priority to eligible entities that 

19 take measures to ban or discourage the pro20 liferation of credit cards and abusive credit 

21 marketing practices on campus; and 

22 (B) consider— 

23 (i) the quality of the proposed finan24 cial literacy delivery system and the degree 

25 to which such system may be used as a 
20 

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1 model for adoption by other institutions of 

2 higher education; 

3 (ii) the resources, if any, that the eli4 gible entity intends to dedicate to the im5 plementation of the plan for the develop6 ment or sponsorship of such system; 

7 (iii) the degree to which technology is 

8 to be used in the implementation of such 

9 plan; and 

10 (iv) the degree to which the eligible 

11 entity will collaborate with other entities in 

12 implementing such plan. 

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

14 a grant under this subsection shall use the grant 

15 funds— 

16 (A) to develop or sponsor an experimental 

17 financial literacy delivery system; and 

18 (B) for activities that explore and assess 

19 the effectiveness of various delivery systems in 

20 delivering personal financial education and 

21 counseling to students and in increasing stu22 dent personal financial literacy. 

23 (6) OBLIGATION.—Grant funds received under 

24 this subsection shall be available for obligation for a 

25 period of not more than 4 years. 
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1 (7) TECHNICAL ASSISTANCE.—From not more 

2 than 5 percent of the funds appropriated to carry 

3 out this subsection, the Secretary shall make tech4 nical assistance available to eligible entities that re5 ceive grants under this subsection. 

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

7 grant under this subsection shall submit a report— 

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

9 on the effectiveness of the financial literacy de10 livery system; and 

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

12 appropriate committees of Congress on the ef13 fectiveness of the financial literacy delivery sys14 tem. 

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 such sums as 

19 may be necessary to carry out this subsection for 

20 each of fiscal years 2006 through 2010. Such funds 

21 shall remain available until expended. 

22 (b) PERSONAL FINANCE COURSE.— 

23 (1) DEFINITIONS.—In this subsection: 

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

25 entity’’— 
22 

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1 (i) means an institution of higher edu2 cation; and 

3 (ii) includes an institution of higher 

4 education in partnership with a public, pri5 vate, or nonprofit entity. 

6 (B) INSTITUTION OF HIGHER EDU7 CATION.—The term ‘‘institution of higher edu8 cation’’ has the meaning given the term in sec9 tion 101 of the Higher Education Act of 1965 

10 (20 U.S.C. 1001). 

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

12 means the Secretary of Education. 

13 (2) AUTHORIZATION.—From funds appro14 priated under paragraph (8), the Secretary shall 

15 award grants, on a competitive basis, to eligible enti16 ties to enable such entities to— 

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

18 in personal finance, create a course in personal 

19 finance; or 

20 (B) if such entities offer a course in per21 sonal finance, share best practices and related 

22 information with other institutions of higher 

23 education about successful personal finance 

24 courses. 

25 (3) APPLICATION.— 
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1 (A) IN GENERAL.—An eligible entity that 

2 desires to receive a grant under this subsection 

3 shall submit an application to the Secretary at 

4 such time, in such manner, and containing such 

5 information as the Secretary may require. 

6 (B) CONTENT.—An application submitted 

7 under subparagraph (A) shall include— 

8 (i) if the entity intends to create a 

9 course in personal finance with grant 

10 funds received under this subsection, infor11 mation on the number of students who 

12 could enroll in such course and the ex13 pected outcomes of the course; or 

14 (ii) if the entity already offers a 

15 course in personal finance, information on 

16 how the institution will share its best prac17 tices with other institutions. 

18 (4) AWARDING OF GRANTS.—In awarding 

19 grants under this subsection, the Secretary shall give 

20 priority to eligible entities that take measures to ban 

21 or discourage the proliferation of credit cards and 

22 abusive credit marketing practices on campus. 

23 (5) OBLIGATION.—Grant funds received under 

24 this subsection shall be available for obligation for a 

25 period of not more than 3 years. 
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1 (6) 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 personal finance 

5 course in increasing the personal financial lit6 eracy of students who complete such course; 

7 and 

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

9 appropriate committees of Congress on the ef10 fectiveness of the personal finance course in in11 creasing the personal financial literacy of stu12 dents who complete such course. 

13 (7) REGULATIONS.—The Secretary shall pro14 mulgate regulations to carry out this subsection. 

15 (8) AUTHORIZATION OF APPROPRIATIONS.— 

16 There is authorized to be appropriated such sums as 

17 may be necessary to carry out this subsection for 

18 each of fiscal years 2006 through 2010. Such funds 

19 shall remain available until expended. 

20 (c) INTEGRATION.— 

21 (1) AUTHORIZATION.—From funds appro22 priated under paragraph (6), the Secretary of Edu23 cation (referred to in this subsection as the ‘‘Sec24 retary’’) shall award a grant, on a competitive basis, 

25 to a nonprofit organization, or a consortium of non-
25 

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1 profit organizations, working in partnership with rel2 evant Federal agencies, educational organizations, 

3 and other nonprofit organizations, to study and rec4 ommend the best ways to integrate personal finance 

5 and economics into basic educational subjects. 

6 (2) APPLICATION.—A nonprofit organization, or 

7 consortium of nonprofit organizations, that desires 

8 to receive the grant under this subsection shall sub9 mit an application to the Secretary at such time, in 

10 such manner, and containing such information as 

11 the Secretary may require. 

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

13 grant under this subsection, the Secretary shall— 

14 (A) give priority to an applicant that has 

15 as its primary purpose the improvement of the 

16 quality of student understanding of personal fi17 nance and economics; and 

18 (B) consider— 

19 (i) the previous record of work of the 

20 applicant in improving the quality of stu21 dent understanding of personal finance 

22 and economics; and 

23 (ii) the degree to which the applicant 

24 has collaborated with other entities that 

25 have as their primary purpose the improve-
26 

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1 ment of the quality of student under2 standing of personal finance and econom3 ics. 

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

5 grant funds have been distributed under this sub6 section, the nonprofit organization, or consortium of 

7 nonprofit organizations, that receives the grant 

8 under this subsection shall submit to the Secretary 

9 and the appropriate committees of Congress a report 

10 on the best ways to integrate personal finance and 

11 economics into basic educational subjects. 

12 (5) REGULATIONS.—The Secretary shall pro13 mulgate regulations to carry out this subsection. 

14 (6) AUTHORIZATION OF APPROPRIATIONS.— 

15 There is authorized to be appropriated such sums as 

16 may be necessary to carry out this subsection for 

17 each of fiscal years 2006 through 2008. Such funds 

18 shall remain available until expended. 

19 (d) TEACHER AND COUNSELOR TRAINING.— 

20 (1) DEFINITIONS.—In this subsection: 

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

22 entity’’— 

23 (i) means— 

24 (I) an education department of 

25 an institution of higher education; or 
27 

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1 (II) an organization described in 

2 section 501(c)(3) of the Internal Rev3 enue Code of 1986, that has as its 

4 primary purpose the improvement of 

5 the quality of student understanding 

6 of personal finance and economics 

7 through effective teaching; and 

8 (ii) includes a partnership of the enti9 ties described in clause (i). 

10 (B) INSTITUTION OF HIGHER EDU11 CATION.—The term ‘‘institution of higher edu12 cation’’ has the meaning given the term in sec13 tion 101 of the Higher Education Act of 1965 

14 (20 U.S.C. 1001). 

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

16 means the Secretary of Education. 

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

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

19 the Commonwealth of Puerto Rico, the United 

20 States Virgin Islands, Guam, American Samoa, 

21 the Commonwealth of the Northern Mariana Is22 lands, the freely associated states of the Repub23 lic of the Marshall Islands, the Federated 

24 States of Micronesia, and the Republic of 

25 Palau. 
28 

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1 (2) AUTHORIZATION.—From funds appro2 priated under paragraph (10), the Secretary shall 

3 award grants, on a competitive basis, to eligible enti4 ties to enable the entities to fund— 

5 (A) preservice teacher training programs in 

6 the instruction of economics and personal fi7 nance in elementary schools and secondary 

8 schools; and 

9 (B) programs to provide preservice and in10 service training of secondary school counselors 

11 in advising students on the importance of im12 proving their economic and personal financial 

13 literacy. 

14 (3) APPLICATION.— 

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

16 desires to receive a grant under this subsection 

17 shall submit an application to the Secretary at 

18 such time, in such manner, and containing such 

19 information as the Secretary may require. 

20 (B) CONTENT.—An application submitted 

21 under subparagraph (A) shall include informa22 tion on— 

23 (i) the number of individuals who 

24 would be served by the eligible entity if 

25 awarded a grant under this subsection; and 
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1 (ii) the expected outcomes of the pro2 posed training. 

3 (4) AWARDING OF GRANTS.— 

4 (A) IN GENERAL.—In awarding grants 

5 under this subsection, the Secretary shall— 

6 (i) give priority to eligible entities that 

7 take measures to ban or discourage the 

8 proliferation of credit cards and abusive 

9 credit marketing practices on campus; and 

10 (ii) consider the applicant’s past 

11 record of success in carrying out similar 

12 training programs. 

13 (B) GRANTS TO ALL STATES.—For any 

14 fiscal year for which the amount appropriated 

15 to carry out this paragraph is more than 

16 $25,000,000, the Secretary shall award not less 

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

18 (5) COORDINATION WITH EXISTING PRO19 GRAMS.—In carrying out programs funded under 

20 this subsection, an eligible entity may coordinate ac21 tivities with other training programs, including pro22 grams authorized under the Excellence in Economic 

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

24 (6) SUPPLEMENT, NOT SUPPLANT.—Grant 

25 funds received under this subsection shall be used to 
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1 supplement, and not supplant, non-Federal funds 

2 available to the eligible entity for the purpose of car3 rying out similar training programs. 

4 (7) OBLIGATION.—Grant funds received under 

5 this subsection shall be available for obligation for a 

6 period of not more than 3 years. 

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

8 grant under this subsection shall submit a report— 

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

10 on the effectiveness of training teachers and 

11 counselors in instructing and advising students 

12 on personal finance; and 

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

14 appropriate committees of Congress on the ef15 fectiveness of training teachers and counselors 

16 in instructing and advising students on personal 

17 finance. 

18 (9) REGULATIONS.—The Secretary shall pro19 mulgate regulations to carry out this subsection. 

20 (10) AUTHORIZATION OF APPROPRIATIONS.— 

21 There is authorized to be appropriated such sums as 

22 may be necessary to carry out this subsection for 

23 each of fiscal years 2006 through 2010. Such funds 

24 shall remain available until expended. 
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1 SEC. 6. EVALUATION. 

2 Not later than 6 years after the date of enactment 

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

4 shall submit to the Committee on Health, Education, 

5 Labor, and Pensions of the Senate, the Committee on 

6 Banking, Housing, and Urban Affairs of the Senate, the 

7 Committee on Education and the Workforce of the House 

8 of Representatives, and the Committee on Financial Serv9 ices of the House of Representatives, an evaluation of the 

10 range and effectiveness of financial and economic edu11 cation and financial aid counseling activities of institutions 

12 of higher education, lenders, servicers, and guaranty agen13 cies as emphasized by the Secretary of Education pursu14 ant to section 123 of the Higher Education Act of 1965. 

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