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Bill > S1496


US S1496

Empowering Students Through Enhanced Financial Counseling Act


summary

Introduced
05/15/2019
In Committee
05/15/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to amend the loan counseling requirements under the Higher Education Act of 1965, and for other purposes. This bill modifies student loan counseling requirements applicable to institutions of higher education (IHEs). 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 financial counseling concerning information on the terms, conditions, and responsibilities of the grant or loan. Also, it expands the required recipients of such annual counseling to include, in addition to student borrowers, Pell Grant recipients and parent PLUS Loan borrowers. In additional, the bill revises, expands, or establishes specific annual counseling information requirements for student borrowers, Pell Grant recipients, or parent PLUS Loan borrowers. The bill revises and expands exit counseling information requirements for borrowers 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 the Department of Education 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.

AI Summary

This bill amends student loan counseling requirements under the Higher Education Act of 1965. It replaces required entrance counseling with annual financial counseling for student borrowers, Pell Grant recipients, and parent PLUS Loan borrowers. The bill expands the required counseling information, such as providing estimated monthly payments, explaining repayment options, and describing the consequences of default. It also directs the Department of Education to maintain consumer-tested online counseling tools for annual and exit counseling, and requires a longitudinal study on the effectiveness of student loan counseling.

Committee Categories

Health and Social Services

Sponsors (4)

Last Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (on 05/15/2019)

bill text


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