Debt

H.R.1193 – Financial Literacy to Financial Freedom Act

Short Titles as Introduced:

Financial Literacy to Financial Freedom Act

Official Title as Introduced:

To amend the Higher Education Act of 1965 to authorize institutions of higher education to provide additional loan counseling, and for other purposes.

Summary:

Introduced in House (02/16/2017)

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.

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