I 
114TH CONGRESS 
1ST SESSION H. R. 3179 
To amend the loan counseling requirements under the Higher Education 
Act of 1965, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 23, 2015 
Mr. GUTHRIE (for himself, Mr. ALLEN, Ms. BONAMICI, Mr. KLINE, Mr. 
SCOTT of Virginia, Mr. HUNTER, Mr. WALBERG, Mr. HECK of Nevada, 
Mr. MESSER, Mr. CARTER of Georgia, Ms. STEFANIK, Mrs. DAVIS of 
California, Mr. GRIJALVA, Mr. SABLAN, Mr. POCAN, Mr. TAKANO, Ms. 
CLARK of Massachusetts, Mr. DESAULNIER, and Mr. HUDSON) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and the Workforce 
A BILL 
To amend the loan counseling requirements under the Higher 
Education Act of 1965, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Empowering Students 
Through Enhanced Financial Counseling Act’’. 
SEC. 2. ANNUAL COUNSELING. 
Section 485(l) of the Higher Education Act of 1965 
(20 U.S.C. 1092(l)) is amended to read as follows: 
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‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 
‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall ensure that each individual who re-
ceives a Federal Pell Grant or a loan made 
under part D (other than a Federal Direct Con-
solidation Loan) receives comprehensive infor-
mation on the terms and conditions of such 
Federal Pell Grant or loan and the responsibil-
ities the individual has with respect to such 
Federal Pell Grant or loan. Such information 
shall be provided, for each award year for which 
the individual receives such Federal Pell Grant 
or loan, in a simple and understandable man-
ner— 
‘‘(i) during a counseling session con-
ducted in person; 
‘‘(ii) online, with the individual ac-
knowledging receipt of the information; or 
‘‘(iii) through the use of the online 
counseling tool described in subsection 
(n)(1)(B). 
‘‘(B) USE OF INTERACTIVE PROGRAMS.— 
In the case of institutions not using the online 
counseling 
tool 
described 
in 
subsection 
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(n)(1)(B), the Secretary shall require such in-
stitutions to carry out the requirements of sub-
paragraph (A) through the use of interactive 
programs, during an annual counseling session 
that is in-person or online, that test the individ-
ual’s understanding of the terms and conditions 
of the Federal Pell Grant or loan awarded to 
the student, using simple and understandable 
language and clear formatting. 
‘‘(2) ALL INDIVIDUALS.—The information to be 
provided under paragraph (1)(A) to each individual 
receiving counseling under this subsection shall in-
clude the following: 
‘‘(A) An explanation of how the student 
may budget for typical educational expenses 
and a sample budget based on the cost of at-
tendance for the institution. 
‘‘(B) An explanation that an individual has 
a right to annually request a disclosure of infor-
mation collected by a consumer reporting agen-
cy pursuant to section 612(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681j(a)). 
‘‘(C) Based on the most recent data avail-
able from the American Community Survey 
available from the Department of Commerce, 
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the estimated average income and percentage of 
employment in the State of domicile of the bor-
rower for persons with— 
‘‘(i) a high school diploma or equiva-
lent; 
‘‘(ii) some post-secondary education 
without completion of a degree or certifi-
cate; and 
‘‘(iii) a bachelor’s degree. 
‘‘(D) An introduction to the financial man-
agement resources provided by the Financial 
Literacy and Education Commission. 
‘‘(3) STUDENTS
RECEIVING
FEDERAL
PELL 
GRANTS.—The information to be provided under 
paragraph (1)(A) to each student receiving a Fed-
eral Pell Grant shall include the following: 
‘‘(A) An explanation of the terms and con-
ditions of the Federal Pell Grant. 
‘‘(B) An explanation of approved edu-
cational expenses for which the student may use 
the Federal Pell Grant. 
‘‘(C) An explanation of why the student 
may have to repay the Federal Pell Grant. 
‘‘(D) An explanation of the maximum 
number of semesters or equivalent for which the 
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