U.S. Representative Ed Royce (R-Calif.) released the following statement on the passage of H.R. 4984, the Empowering Students Through Enhanced Financial Counseling Act:
“As national student loan debt rises, it’s imperative that borrowers know exactly what their financial obligation will total so they can make informed decisions about spending for college and paying off loans afterwards. A college education is often the cornerstone of the American Dream, and gaining one in a fiscally responsible manner better places young people on the path to success.”
The Empowering Students Through Financial Counseling Act ensures borrowers, both students and parents, who are participating in federal student loan programs receive interactive counseling each year that provides awareness about the financial obligations students and parents are accumulating. Borrowers are required to consent each year before receiving federal student loans.
Additionally, it calls for informing low-income students about the terms and conditions of the Pell Grant program through annual counseling that will be provided to all grant recipients. And finally, the legislation directs the United States Department of Education to maintain a consumer-tested, online counseling tool that academic institutions can use to provide annual loan, exit, and Pell Grant counseling to students.
Rep. Royce, Chairman of the House Foreign …read more
Source: U.S. Rep. Ed Royce