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United States · Bill · HR

H.R. 4984 (113th)

Empowering Students Through Enhanced Financial Counseling Act

referredUnited States· United States Congress· EN

Introduced

26 June 2014

Last action

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Status

Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsors

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Subjects

Discovery layer

Source updated

21 July 2025

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Summary

Empowering Students Through Enhanced Financial Counseling Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require institutions of higher education (IHEs) to provide annual (currently, entrance) counseling to student borrowers under the William D. Ford Federal Direct Loan program, beginning at or prior to the student's acceptance of the loan. Requires that counseling to be conducted in person, online, or through the use of an online counseling tool maintained by the Secretary of Education. Adds to the information such counseling shall provide: an explanation that the borrower is not required to accept the full amount of the loan; an explanation that the borrower should consider accepting any grant, scholarship, or state or federal work-study jobs for which the borrower is eligible before accepting federal student loans; a recommendation to exhaust the borrower's federal student loan options prior to taking out private loans which may not offer as favorable terms and repayment options as federal student loans; an explanation of the educational expenses Direct Loans cover; information on the annual and aggregate limits on such loans; and information regarding the borrower's outstanding balance and anticipated monthly payment amount. Requires the exit counseling IHEs provide to student borrowers of loans under the Federal Family Education Loan (FFEL), Direct Loan, and Federal Perkins Loan programs to be conducted through: (1) the use of an interactive program, (2) during an in-person or online session, or (3) through the use of an online counseling tool maintained by the Secretary. Adds to the information such counseling shall provide: the outstanding principal and interest due on the loans; an explanation of the grace period preceding repayment and the expected date the borrower will enter repayment; an explanation that the borrower has the option to pay any interest that accrued while the borrower was in school or that may accrue during grace, deferment, or forbearance periods, prior to the capitalization of the interest; information showing the borrower's anticipated monthly payments under different repayment plans; and contact information for the loan servicer and a link to such servicer's website. Requires IHEs to provide annual counseling to Federal Pell Grant recipients that is conducted in person, online, or through the use of an online counseling tool maintained by the Secretary. Requires such counseling to include an explanation of: the Pell Grant; the educational expenses such Grants cover; why the student may have to repay the Grant; the maximum number of semesters or equivalent periods for which the student may be eligible for the Grant and the amount of time remaining on such eligibility; how the student may budget for typical educational expenses; and how the student may seek additional financial assistance from the IHE's financial aid office due to changes in the student's financial circumstances, including contact information for that office. Directs the Secretary to maintain consumer tested online counseling tools that provide recipients of assistance under title IV with the annual counseling and exit counseling this Act requires.

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Documents

11 official files

Referred in Senate (text)

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