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Bill > HR1193


US HR1193

US HR1193
Financial Literacy to Financial Freedom Act


summary

Introduced
02/16/2017
In Committee
02/16/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Financial Literacy to Financial Freedom 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 one-time entrance counseling to a student who is a first-time Direct Loan (DL) program borrower. This bill allows an IHE to require any student DL program borrower to complete additional counseling on the terms, conditions, and responsibilities of a loan at or prior to its disbursement. Additionally, it requires an IHE to ensure that student and parent DL program borrowers annually accept a loan affirmatively prior to the first disbursement of such loan.

AI Summary

This bill, the Financial Literacy to Financial Freedom Act, amends the Higher Education Act of 1965 to allow institutions of higher education (IHEs) to require additional loan counseling for any student borrower in the Direct Loan (DL) program, not just first-time borrowers. The bill also requires IHEs to ensure that student and parent DL program borrowers annually affirm acceptance of their loans before the first disbursement. These changes are intended to improve financial literacy and help borrowers better understand the terms, conditions, and responsibilities of their student loans.

Committee Categories

Education

Sponsors (1)

Last Action

Referred to the House Committee on Education and the Workforce. (on 02/16/2017)

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