Empowering Students Through Enhanced Financial Counseling Act

Bill: 114-hr-3179
Sponsor: Rep. Guthrie, Brett [R-KY-2]
Introduced: 2015-07-23 in the House
Policy area: Education
Subjects: Consumer affairs
Educational guidance
Government information and archives
Government lending and loan guarantees
Government studies and investigations
Higher education
Interest, dividends, interest rates
School administration
Student aid and college costs

Summary:
action_date: 2015-07-23
text: 

Empowering Students Through Enhanced Financial Counseling Act

 
This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to modify loan counseling requirements for an institution of higher education (IHE) that participates in federal student aid programs.
 
Currently, an IHE must provide entrance counseling to a student who is a first-time federal student loan borrower. This bill replaces required entrance counseling with required annual counseling. Also, it expands the required recipients of such annual counseling to include, in addition to student borrowers, Federal Pell Grant recipients and parent PLUS Loan borrowers. 
 
Each annual counseling recipient must receive comprehensive information on the terms, conditions, and responsibilities with respect to a grant or loan and general information on a typical student budget, the right to request an annual credit report, average income and employment data, and financial management resources. Additionally, the bill revises, expands, or establishes specific annual counseling information requirements for student borrowers, Pell Grant recipients, or parent PLUS Loan borrowers. 
 
The legislation revises and expands exit counseling information requirements to include an outstanding loan balance summary, the anticipated monthly payments under standard and income-based repayment plans, an explanation of the grace period preceding repayment, the option to pay accrued interest before it capitalizes, the right to request an annual credit report, and loan servicer contact information.
 
It directs ED to maintain a consumer-tested online counseling tool that provides annual and exit counseling. 
 
 The Institute of Education Sciences must study the impact and effectiveness of exit counseling, annual counseling, and the online counseling tool. 

action_date: 2016-07-11
text: 

Empowering Students Through Enhanced Financial Counseling Act

 
(Sec. 2) This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to modify loan counseling requirements for an institution of higher education (IHE) that participates in federal student aid programs.
 
Currently, an IHE must provide entrance counseling to a student who is a first-time federal student loan borrower. This bill replaces required entrance counseling with required annual counseling. Also, it expands the required recipients of such annual counseling to include, in addition to student borrowers, Federal Pell Grant recipients and parent PLUS Loan borrowers. 
 
Each annual counseling recipient must receive comprehensive information on the terms, conditions, and responsibilities with respect to a grant or loan and general information on a typical student budget, the right to request an annual credit report, average income and employment data, and financial management resources. Additionally, the bill revises, expands, or establishes specific annual counseling information requirements for student borrowers, Pell Grant recipients, or parent PLUS Loan borrowers. 
 
(Sec. 3) The legislation revises and expands exit counseling information requirements to include an outstanding loan balance summary, the anticipated monthly payments under standard and income-based repayment plans, an explanation of the grace period preceding repayment, the option to pay accrued interest before it capitalizes, the right to request an annual credit report, and loan servicer contact information.
 
(Sec. 4) It directs ED to maintain a consumer-tested online counseling tool that provides annual and exit counseling. 
 
 (Sec. 5) The Institute of Education Sciences must study the impact and effectiveness of exit counseling, annual counseling, and the online counseling tool.
 
(Sec. 6) No additional funds are authorized to carry out the requirements of this bill.


Legislative actions:
action_date: 2016-07-12
text: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
action_date: 2016-07-11
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2016-07-11
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4607-4609)
action_date: 2016-07-11
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H4607-4609)
action_date: 2016-07-11
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 3179.
action_date: 2016-07-11
text: Considered under suspension of the rules. (consideration: CR H4607-4611)
action_date: 2016-07-11
text: Mr. Guthrie moved to suspend the rules and pass the bill, as amended.
action_date: 2016-07-11
text: Placed on the Union Calendar, Calendar No. 523.
action_date: 2016-07-11
text: Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 114-675.
action_date: 2016-07-11
text: Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 114-675.
action_date: 2016-06-22
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2016-06-22
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-11-16
text: Referred to the Subcommittee on Higher Education and Workforce Training.
action_date: 2015-07-23
text: Referred to the House Committee on Education and the Workforce.
action_date: 2015-07-23
text: Introduced in House
action_date: 2015-07-23
text: Introduced in House