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house Bill H.R. 3179

Does Federal Financial Aid Counseling for Students and Parents Need to be Improved?

Argument in favor

Some Americans who are struggling with their student loan debt didn’t fully understand the repercussions of borrowing thousands of dollars in federal loans. That’s a symptom of inadequate counseling, which this bill looks to improve.

Aidan-WC's Opinion
···
07/22/2016
This is evidently not a manner of conducting an increase in finical aid. For those that closely read the description of this proposal it clearly stated that this would be an implementation to improve the financial stability knowledge for students. Any form of finical advantage to conduct throughout our universities would exemplify the matter of competence throughout congress. Consulting with individuals that have an advancement in the manner of maintaining finical stabilization for future economic growth would be a LARGE GUIDELINE FOR FUTURE GENERATIONS TO COME AND ESPECIALLY FOR LOWER CLASS CITIZENS THAT WERE PROVIDED WITH A SCHOLARSHIP ALTHOUGH NOT THE FINICAL NOURISHMENT FROM THEIR FAMILIES/ GUARDIANS. I see this finical advantage for academics as distinct opportunity for students just to have a general basis of what responsibility and integrity it takes to manage and maintain your money as well. Additionally, according to the detailed column this bill would propose an implementation in which students may gather more knowledge of their further obligations with their accounts and future strategies of how to grow and broaden them as well. We must enhance the ability for students in colleges/universities to have federal assistance in the ability to have a stabilized finical status!. Although, it's not an implementation of what Bernie Sanders proposed at first "Your all getting free tuition" and a few weeks later it was if both of your parents were making a combined income of 125,000 according to the mainstream media sources and strictly for public colleges only! So yes Harvard or Columbia or if your looking forward to go to an Ivy League you can unfortunately forget going for "free tuition". ITS SIMPlY NOT FEASIBLE! I was always looking forward to shoot for Harvard and possibly head to business or law school. Thank you for your time.
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Holly's Opinion
···
09/25/2016
Counseling absolutely needs to be improved. It's almost as if there is little to no counseling on the hopes that high interest loans are obtained.
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Nelz's Opinion
···
08/30/2016
Even though there may already be financial counseling, doesn't mean people are currently benefiting from it.For example, their are many programs set in place that do not work for people and need to be enhanced or changed.This bill is looking to fix a problem that has been swept under the rug for many years,
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Argument opposed

There is already financial aid counseling for students and parents that they go through before accepting federal student loans. There’s no need to improve the quality of the counseling as borrowers need to do their due diligence and inform themselves.

operaman's Opinion
···
07/11/2016
This loan is between parent and student. As Hillary says in her book, "it takes a village" to acquire a student loan. The poor (no cash) snowflake has been protected by parents and family through the formative years. If the student hasn't been paying attention during high school about their graduation and possible college acceptance and pending financial funding then our snowflake needs someone's co-sign signature. College is expensive, mostly after the Feds got involved. Talk to your parents, think about local higher education. Scholarships may be available, so if you have a job, save your money and consider postponing your higher education for several years. A little hard work will help you appreciate higher education. Study more and forget that summer in European hostels living out of a backpack.
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Mart's Opinion
···
07/11/2016
Cut the apron strings. And while we're at it, cut funding for higher education, it's driving up the price, creating astronomical debt and controlling curriculum.
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Brandon's Opinion
···
07/12/2016
Federal Financial aid should be abolished. Its not the responsibility of the people to ensure kids can enter university. Get a job and go to a school you can afford.
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What is House Bill H.R. 3179?

This bill would seek to improve the financial counseling received by students taking out loans for their education. Annual financial aid counseling would be required for all borrowers in addition to students receiving Pell Grants, and the Dept. of Education would be required to make this counseling tool available online.

Each year, both students and parents — or whoever is doing the borrowing — would be required to go through interactive counseling that reflects their personal borrowing situation each year. The counseling would provide an awareness about the financial obligations students and parents are accumulating, and require them to consent each year before accepting federal student loans. Financial aid exit counseling would also be provided when the student concludes their education to inform the student about repayment options, grace periods, and forbearance.

The Dept. of Education would be required to begin a longitudinal (over multiple years) study about the effectiveness of student loan counseling in improving student performance in the following categories:

  • Student persistence;

  • Degree attainment;

  • Program completion;

  • Successful entry into student loan repayment;

  • Cumulative borrowing levels;

  • Other factors that the Secretary of Education may determine.

No new funds would be made available for implementing this legislation if it’s enacted, as the Dept. of Education would be able to use $2 million in funding it has already been given to use on maintaining its financial aid counseling tool.

The Dept. of Education does currently require students and parents to go through counseling and sign a promissory note before accepting federal student loans, but it is less involved than what would be offered under this bill. For example, this bill would require a signature to accept each loan during the course of a year, and counseling is currently only required before the student accepts their first loan rather than each year.

Impact

Students and parents borrowing federal student loans; colleges, universities, and other higher education institutions; and the Dept. of Education.

Cost of House Bill H.R. 3179

$2.00 Million
The CBO estimates that implementing this bill would cost $2 million, which would come from funds reserved by the Dept. of Education.

More Information

In-Depth: Sponsoring Rep. Brett Guthrie (R-KY) introduced this bill to ensure that students and their parents go through an adequate student loan counseling process that gives them the power to make informed financial choices:

“Students need timely and comprehensive information on facts and existing options surrounding financing their college education in order to make wise and informed decisions. Current policies do not provide students with the tools they need to have a clear understanding of their financial obligations. My bill will improve the quality of counseling for student borrowers so that they have the ability to choose the best-suited financing option for them.”

This legislation was passed by the House Education and Workforce Committee on a voice vote, and has the support of 38 bipartisan cosponsors equally divided between Democrats and Republicans.



Media:

Summary by Eric Revell
(Photo Credit: Flickr user Satsuma61)

AKA

Empowering Students Through Enhanced Financial Counseling Act

Official Title

To amend the loan counseling requirements under the Higher Education Act of 1965, and for other purposes.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Health, Education, Labor, and Pensions
  • The house Passed July 11th, 2016
    Passed by Voice Vote
      house Committees
      Committee on Education and Labor
      Higher Education and Workforce Investment
    IntroducedJuly 23rd, 2015

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    This is evidently not a manner of conducting an increase in finical aid. For those that closely read the description of this proposal it clearly stated that this would be an implementation to improve the financial stability knowledge for students. Any form of finical advantage to conduct throughout our universities would exemplify the matter of competence throughout congress. Consulting with individuals that have an advancement in the manner of maintaining finical stabilization for future economic growth would be a LARGE GUIDELINE FOR FUTURE GENERATIONS TO COME AND ESPECIALLY FOR LOWER CLASS CITIZENS THAT WERE PROVIDED WITH A SCHOLARSHIP ALTHOUGH NOT THE FINICAL NOURISHMENT FROM THEIR FAMILIES/ GUARDIANS. I see this finical advantage for academics as distinct opportunity for students just to have a general basis of what responsibility and integrity it takes to manage and maintain your money as well. Additionally, according to the detailed column this bill would propose an implementation in which students may gather more knowledge of their further obligations with their accounts and future strategies of how to grow and broaden them as well. We must enhance the ability for students in colleges/universities to have federal assistance in the ability to have a stabilized finical status!. Although, it's not an implementation of what Bernie Sanders proposed at first "Your all getting free tuition" and a few weeks later it was if both of your parents were making a combined income of 125,000 according to the mainstream media sources and strictly for public colleges only! So yes Harvard or Columbia or if your looking forward to go to an Ivy League you can unfortunately forget going for "free tuition". ITS SIMPlY NOT FEASIBLE! I was always looking forward to shoot for Harvard and possibly head to business or law school. Thank you for your time.
    Like (32)
    Follow
    Share
    This loan is between parent and student. As Hillary says in her book, "it takes a village" to acquire a student loan. The poor (no cash) snowflake has been protected by parents and family through the formative years. If the student hasn't been paying attention during high school about their graduation and possible college acceptance and pending financial funding then our snowflake needs someone's co-sign signature. College is expensive, mostly after the Feds got involved. Talk to your parents, think about local higher education. Scholarships may be available, so if you have a job, save your money and consider postponing your higher education for several years. A little hard work will help you appreciate higher education. Study more and forget that summer in European hostels living out of a backpack.
    Like (11)
    Follow
    Share
    Cut the apron strings. And while we're at it, cut funding for higher education, it's driving up the price, creating astronomical debt and controlling curriculum.
    Like (9)
    Follow
    Share
    Federal Financial aid should be abolished. Its not the responsibility of the people to ensure kids can enter university. Get a job and go to a school you can afford.
    Like (7)
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    If you can't understand the forms after graduating HS you have no business being in college.
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    Counseling absolutely needs to be improved. It's almost as if there is little to no counseling on the hopes that high interest loans are obtained.
    Like (3)
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    Share
    Even though there may already be financial counseling, doesn't mean people are currently benefiting from it.For example, their are many programs set in place that do not work for people and need to be enhanced or changed.This bill is looking to fix a problem that has been swept under the rug for many years,
    Like (3)
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    No no new institutions!
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    Instead of additional counseling, government should focus on reducing the interest rate of student loans. Students should not be in debt for a decade just because they obtained an education needed for most careers these days
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    Although the good thing about this bill is that it requires annual counseling, the fatal part is that it proposes to do it all online: no way. They will just click through and not read a word of it, guaranteed. Instead financial aid should depend on what major or track students are taking (engineering or math: OK, American studies or other basket weaving: NO WAY, get a job).
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    Nope - end financial aid all together, it's done nothing more than drive up the cost of education and student debt. Get the govt out of it all together.
    Like (2)
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    Has anyone on here taken out a student loan recently? Students are already required to go through financial counseling before a loan can be taken out. It's thorough and you can learn as much or as little as you please. You can fly through it and be done in five minutes, or you can sit down and learn the material over an hour. That's how it should be.
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    Right now
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    Student loan debt is one of the biggest setbacks ever. If I give anyone advice on college it's to do everything they can NOT to get a loan.
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    Tremendous need for improvement in this area needed.
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    As a current college student (and not a loan recipient, mind you. Thank you fed aid!) I can tell you that this is a difficult issue. My ultimate opinion is this: I did aid and loan counseling before I even enrolled in university, because I thought that I wouldn't get aid. As it turns out, I'm eligible for everything. There is information out there like loan counseling info sessions, info online available through most universities, and you can even do a simple google search. There is no need to invest funding in something people already have the resources for.
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    Students lack the information required to perform better in college. Many are awarded the HOPE Scholarship; however, they are underprepared for college. More orientations should be conducted.
    Like (1)
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    Everything is in writing. It explains terms and consequences. What should be taught more is money and loan management.
    Like (1)
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    Financial literacy for college loans is barely taught in high school or college unless parents and students seek it out, and many don't know how to become financially literate. This would be especially helpful for a student in college for the first time in their family.
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    The Federal government keeps moving to take over the job of Parents, Grandparents, and community mentors. The failures of Federal Government in the parental role are self-evident. Just read or watch the news.
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