borrowers default on a student loan every day, many 
of whom did not complete their educational program 
before obtaining a degree. 
(2) The cost of paying for public higher edu-
cation and workforce training programs continues to 
rise while the purchasing power of Federal Pell 
Grant aid has significantly diminished. 
(3) The confluence of these issues forces pro-
spective students to make the tough choice between 
foregoing postsecondary education and borrowing 
enough money to pay for it, an amount that is often 
many times their annual salary and can remain a fi-
nancial burden for decades after these students 
graduate. 
(4) The higher rates of loan delinquencies and 
default among low- and moderate-income popu-
lations often lead to increased financial hardship, 
fewer assets, and lower net worth. 
(5) In 2013, the Brookings Institute found that 
the increasing debt burden represents a drag on re-
cent graduates and also serves as a deterrent to 
would-be students who may question the trade-off 
between the debt burden and the payoff of a college 
degree. 
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(6) During the 2015–2016 academic year, the 
Department of Education found that nearly 3 in 4 
students experienced unmet need, and that unmet 
need among postsecondary students had risen by 23 
percent since the 2011–2012 academic year. 
(7) The Federal Reserve System has deter-
mined student loan payments are displacing retire-
ment savings, home ownership, small business devel-
opment, and other forms of building wealth. 
(8) The Report on the Economic Well-Being of 
United States Households in 2018 by the Federal 
Reserve found that 2 in 3 graduates with a bach-
elor’s degree or higher feel that their educational in-
vestment paid off financially, but only 3 in 10 stu-
dents who started higher education programs but 
did not complete a degree share this view. 
(9) The United States urgently needs a new, in-
novative approach to financial aid to help low-income 
students achieve their educational goals, graduate 
with affordable amounts of student loan debt, and 
improve their financial capability. 
SEC. 3. PURPOSE. 
It is the purpose of this Act to— 
(1) establish a proven and innovative matched 
savings program for low-income students that pro-
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vides the financial resources and support those stu-
dents need to attain their educational goals; 
(2) provide a much-needed supplement to tradi-
tional financial aid options through matched savings; 
(3) give students the tools to succeed by giving 
students the opportunity to invest in their education 
and to improve their financial capability through fi-
nancial empowerment training and success coaching; 
and 
(4) help students— 
(A) develop healthy financial habits and 
life skills; 
(B) prepare to embark on a lifetime of 
healthy financial practices after graduation; and 
(C) minimize or eliminate student loan 
debt. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) 529 ACCOUNT.—The term ‘‘529 account’’ 
means a qualified tuition program as defined in sec-
tion 529(b) of the Internal Revenue Code of 1986. 
(2) ELIGIBLE
EDUCATIONAL
INSTITUTION.— 
The term ‘‘eligible educational institution’’ means— 
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(A) an institution of higher education, as 
defined in section 102 of the Higher Education 
Act of 1965 (20 U.S.C. 1002); or 
(B) an area career and technical education 
school, as defined in section 3(3) of the Carl D. 
Perkins Career and Technical Education Act of 
2006 (20 U.S.C. 2302(3)). 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a State or a nonprofit organization. 
(4) ELIGIBLE
STUDENT.—The term ‘‘eligible 
student’’ means an individual who— 
(A) is selected to participate in a postsec-
ondary education match savings account pro-
gram; 
(B) has been admitted to an eligible edu-
cational institution; 
(C) is a student from a low-income family, 
as determined by the eligible entity; 
(D) successfully completes a required pre-
requisite personal finance training program; 
(E) agrees to contribute savings to the 
postsecondary education match savings account 
administered by the eligible entity under this 
section; and 
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(F) meets any other eligibility criteria as 
defined by the eligible entity. 
(5) FINANCIAL
CAPABILITY
TRAINING
PLAT-
FORM.—The term ‘‘Financial Capability Training 
Platform’’ means a program for use by a postsec-
ondary education match savings account program 
carried out with a grant under section 5 that— 
(A) delivers financial capability training to 
participating students that is designed to help 
students improve their financial capability and 
overall financial well-being; 
(B) includes an initial assessment to iden-
tify individual learning goals and objectives; 
(C) creates a personal and dynamic learn-
ing experience for each individual participant, 
including ongoing assessments and interim 
milestones related to learning objectives and 
longer-term goals; and 
(D) includes modules on student loans, fi-
nancial aid, budgeting and credit, consumer 
debt, housing costs, retirement, the importance 
of emergency savings, banking (including check-
ing and savings accounts), credit use and inter-
est rates, predatory lending practices, privacy, 
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and security, which shall be conducted by or at 
the direction of the eligible entity. 
(6) POSTSECONDARY EDUCATION MATCH SAV-
INGS
ACCOUNT.—The term ‘‘postsecondary edu-
cation match savings account’’ means an account 
that is— 
(A) a custodial account; or 
(B) a 529 account. 
(7) PROGRAM
GUIDE.—The term ‘‘Program 
Guide’’ means a guide that includes program policies 
and procedures, a savings plan agreement template, 
a withdrawal form template, recommended timelines, 
other key forms, and the structure for implementing 
and reporting program results for a postsecondary 
education match savings account program carried 
out with a grant under this section. 
(8) REPORTING DASHBOARD.—The term ‘‘Re-
porting Dashboard’’ means a robust online data por-
tal for postsecondary education match savings ac-
count programs carried out with a grant under this 
section that— 
(A) allows eligible entities to monitor stu-
dent progress, track achievement, and measure 
relevant behavioral change; 
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(B) standardizes and facilitates student 
evaluation across participating eligible edu-
cational institutions; and 
(C) is in compliance with the requirements 
of section 444 of the General Education Provi-
sions Act (commonly known as the ‘‘Family 
Educational Rights and Privacy Act of 1974’’) 
(20 U.S.C. 1232g). 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(10) STUDENT
WITH
PRELIMINARY
ELIGI-
BILITY.—The term ‘‘student with preliminary eligi-
bility’’ means an individual who— 
(A) is from a low-income family, as deter-
mined by an eligible entity; 
(B) plans to attend an eligible educational 
institution; and 
(C) meets the requirements described in 
subparagraphs (E) and (F) of paragraph (4). 
(11) SUCCESS
COACHING
MODEL.—The term 
‘‘Success Coaching Model’’ includes— 
(A) financial capability training to address 
budgeting, managing student debt, savings, 
debit management, credit cards, retirement 
readiness, and credit reports; 
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(B) postsecondary education readiness 
training that provides mentoring to help stu-
dents be better prepared for the challenges of 
postsecondary education; and 
(C) workforce readiness training to learn 
interviewing, resume skills, and career explo-
ration. 
SEC. 5. POSTSECONDARY EDUCATION MATCH SAVINGS AC-
COUNT DEMONSTRATION GRANT PROGRAM. 
(a) GRANT ESTABLISHED.— 
(1) IN
GENERAL.—Not later than 9 months 
after the date of enactment of this Act, the Sec-
retary shall establish a postsecondary education 
match savings account demonstration grant program 
described in this section, through which the Sec-
retary shall award grants, on a competitive basis, to 
eligible entities to enable those eligible entities to 
carry out the activities described in subsection (e). 
(2) TOOLS
FOR
GRANTEES.—The Secretary 
shall develop the Reporting Dashboard, Financial 
Capability Training Platform, Program Guide, and 
Success Coaching Model and make those tools avail-
able to grantees. 
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(3) PELL
ELIGIBILITY
NOT
AFFECTED.—The 
Secretary shall ensure that, notwithstanding any 
other provision of law— 
(A) participation in the grant program 
shall not affect a student’s eligibility for a Fed-
eral Pell Grant under section 401 of the Higher 
Education Act of 1965 (20 U.S.C. 1070a); and 
(B) funds deposited in a postsecondary 
education match savings account by a partici-
pating student, as well as any matching funds 
under this section, shall not be considered when 
a determination is made about that student’s 
eligibility for Federal student aid under title IV 
of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.), including for a Federal 
Pell Grant. 
(b) APPLICATION.—An eligible entity that desires to 
participate in the grant program under this section shall 
submit an application to the Secretary at such time, in 
such manner, and containing such information as the Sec-
retary may determine, including, at a minimum— 
(1) a demonstration of— 
(A) a commitment of non-Federal match-
ing funds at a ratio of 1:1 (which non-Federal 
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funds may be provided by an entity other than 
the eligible entity); 
(B) the ability to launch and implement 
the program; and 
(C) a plan for compliance with evaluation 
and program monitoring; and 
(2) an assurance that the applicant will utilize 
the Reporting Dashboard, Financial Capability 
Training Platform, and Success Coaching Model de-
veloped by the Secretary under subsection (a)(2). 
(c) SELECTION.— 
(1) PRIORITY.—In selecting eligible entities to 
participate in the grant program under this section, 
the Secretary shall give priority to eligible entities 
that— 
(A) target eligible students and students 
with preliminary eligibility at a statewide level 
with networks of participating eligible edu-
cational institutions; and 
(B) commit to supporting selected students 
through the student’s graduation from an eligi-
ble educational institution. 
(2) DIVERSITY OF PROJECTS.—The Secretary 
shall ensure, to the maximum extent practicable, 
that the eligible entities awarded grants under this 
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section include eligible entities that represent a 
range of communities (both rural and urban) and di-
verse populations. 
(d) AMOUNT.—A grant awarded under this section 
shall be in an amount not to exceed the lesser of— 
(1) the aggregate amount of funds committed 
as matching contributions from non-Federal public 
or private sector sources; or 
(2) $10,000,000. 
(e) USES OF FUNDS.— 
(1) IN GENERAL.—An eligible entity receiving a 
grant under this section shall use the grant funds 
to— 
(A) select eligible students, or students 
with preliminary eligibility, in the State in 
which the eligible entity is located to participate 
in the grant program; 
(B) provide selected students with financial 
literacy education using the Success Coaching 
Model; 
(C) after ensuring that a selected eligible 
student or selected student with preliminary eli-
gibility has completed an agreement regarding 
the terms and conditions of the postsecondary 
education match savings account, establish a 
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postsecondary education match savings account 
for each participating eligible student or stu-
dent with preliminary eligibility and allow stu-
dents and their families to deposit funds in that 
account to save for attendance at an eligible 
educational institution; and 
(D) reserve matching funds for partici-
pating students in accordance with paragraph 
(2). 
(2) MATCHING FUNDS.— 
(A) IN
GENERAL.—Upon a participating 
student or student’s family depositing $100 into 
a postsecondary education match savings ac-
count for the appropriate academic year, the el-
igible entity shall provide a match of $8 into 
the student’s postsecondary education match 
savings account for each subsequent dollar de-
posited by the student or student’s family. 
(B) WITHDRAWAL
FROM
SCHOOL.—If a 
participating student withdraws from an eligible 
educational institution during the drop-add pe-
riod at that eligible educational institution, the 
student shall be responsible for any amounts 
owed for that academic period and will not re-
ceive matching funds for that academic period. 
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(C) DELAY
OF
ATTENDANCE; EXTENU-
ATING CIRCUMSTANCES.—Subject to paragraph 
(3), each eligible entity shall describe in the 
agreement under paragraph (1)(C) the eligible 
entity’s policy regarding the availability of 
matching funds in the event a student decides 
to delay attendance at an eligible educational 
institution or in the case of extenuating cir-
cumstances, such as illness of a student. 
(3) RETURN OF DEPOSITED FUNDS.— 
(A) IN
GENERAL.—Each eligible entity 
shall ensure that a participating eligible stu-
dent, or a student with preliminary eligibility, 
who does not meet or maintain the require-
ments of paragraph (4) or (10) of section 4, re-
spectively, shall be entitled to withdraw funds 
that the student or the student’s family contrib-
uted to the postsecondary education match sav-
ings account in accordance with the terms and 
conditions that are contained in the agreement 
for that postsecondary education match savings 
account, as described in paragraph (1)(C). 
(B) EXPIRATION.— 
(i) IN
GENERAL.—The participation 
of an eligible student or student with pre-
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liminary eligibility in the postsecondary 
education match savings account dem-
onstration grant program shall terminate 
on the expiration date described in clause 
(ii). The eligible entity shall cease reserv-
ing matching funds on behalf of that stu-
dent as described in paragraph (1)(D). 
Any remaining funds that the student or 
the student’s family deposited in a postsec-
ondary education match savings account 
shall be made available for withdrawal in 
accordance with subparagraph (A). 
(ii) EXPIRATION DATE.—The expira-
tion date described in this clause is— 
(I) the date that is 8 years after 
the date on which a participating eli-
gible student first enrolled in an eligi-
ble educational institution; or 
(II) in the case of a student with 
preliminary eligibility, or a partici-
pating eligible student who does not 
enroll in an eligible educational insti-
tution, the date that is 4 years after 
the date on which the student first 
agrees to participate in the postsec-
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ondary education match savings ac-
count demonstration grant program. 
(4) MANAGEMENT
COSTS.—An eligible entity 
receiving a grant under this section may use not 
more than 5 percent of grant funds for management 
costs, which may include nonadministrative and ad-
ministrative functions, including program manage-
ment, reporting requirements, recruitment and en-
rollment of individuals, and monitoring. 
(f) DATA SHARING.—An eligible entity receiving a 
grant under this section shall enter into a data sharing 
agreement with eligible educational institutions in order 
to exchange data necessary to carry out the activities de-
scribed in this section. Such data sharing shall be carried 
out in a manner that complies with the requirements of 
section 444 of the General Education Provisions Act (com-
monly known as the ‘‘Family Educational Rights and Pri-
vacy Act of 1974’’) (20 U.S.C. 1232g). 
(g) ANNUAL PROGRESS REPORTS.—Each eligible en-
tity receiving a grant under this section shall prepare and 
submit to the Secretary an annual progress report con-
taining the following information, in the aggregate and in 
a manner that protects personally identifiable information 
in accordance with Federal privacy laws: 
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(1) The number and characteristics of partici-
pating students making a deposit into a postsec-
ondary education match savings account supported 
under this section. 
(2) Data on program goals and achievements 
including enrollment rates, first-year retention rates, 
program completion, average Federal student loan 
debt, and share of participating eligible students 
borrowing Federal student loans. 
(3) The amount that the eligible entity has re-
served in accordance with subsection (e)(1)(D). 
(4) The aggregate amounts deposited in post-
secondary education match savings accounts by par-
ticipating students and their families. 
(5) What service configurations of the eligible 
entity (such as configurations relating to peer sup-
port, structured planning exercises, mentoring, and 
case management) increased the rate and consist-
ency of participation in the demonstration project 
and how such configurations varied among different 
populations or communities. 
(6) Such other information as the Secretary 
may require to evaluate the demonstration project. 
(h) REPORT TO CONGRESS.—Not later than 1 year 
after the establishment of the demonstration project under 
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this section, the Secretary shall prepare and submit to 
Congress a report containing the following information: 
(1) The effects of incentives and organizational 
or institutional support on postsecondary retention 
in the demonstration project. 
(2) The savings rates of individuals in the dem-
onstration 
project, 
in 
the 
aggregate 
and 
disaggregated by demographic characteristics includ-
ing gender, age, family size, race or ethnic back-
ground, and income. 
(3) The effects of postsecondary education 
match savings accounts on savings rates and post-
secondary education retention and completion, and 
how such effects vary among different populations or 
communities. 
(4) The lessons to be learned from the dem-
onstration projects conducted under this section and 
whether a permanent postsecondary education sav-
ings grant program should be established. 
(5) The characteristics of postsecondary edu-
cation match savings accounts (such as threshold 
amounts and match rates) required to stimulate par-
ticipation in the demonstration project, and how 
such characteristics vary among different popu-
lations or communities. 
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