,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dihd ,,in ,,the ,,house ,,of ,,representatives ,june #bf1 #bjad ,mr4 ,guthrie 7for himself1 ,mr4 ,hudson1 and ,mr4 ,kline7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce ,a ,,bill ,to amend the loan counseling requirements under the ,higher ,education ,act of #aife1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,empowering ,students ,through ,enhanced ,financial ,counseling ,act4 #b4 ,annual counseling ,section #dhe7l7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7l77 is amended-- 7#a7 in the subsection heading1 by striking ,entrance and inserting ,annual2 7#b7 in paragraph 7#a7-- 7,a7 in the paragraph heading1 by striking disbursement and inserting acceptance2 7,b7 in subparagraph 7,a7-- 7i7 in the matter preceding clause 7i7-- 7,i7 by striking at or prior to and inserting prior to or in conjunction with2 and 7,,ii7 by striking a disbursement to a first-time borrower of a loan made1 insured1 or guaranteed under part ,b 7other than a loan made pursuant to section #dbh;,c or a loan made on behalf of a student pursuant to section #dbh;,b7 or and inserting acceptance 7in a manner described in subparagraph 7,a71 7,b71 or 7,c7 of paragraph 7#d77 by a borrower of a loan2 and 7ii7 in clause 7ii7-- 7,i7 in the matter preceding subclause 7,i7-- 7aa7 by striking may and inserting shall2 and 7bb7 by inserting 1 for each award year for which the borrower receives a loan made under part ,d after provided2 7,,ii7 in subclause 7,i71 by striking an entrance counseling session conduction in person and inserting a counseling session conducted in person2 7,,iii7 by striking subclause 7,,ii72 7,,iv7 by redesignating subclause 7,,iii7 as subclause 7,,ii72 7,v7 in subclause 7,,ii71 as so redesignated1 by striking the period at the end and inserting 2 or2 and 7,,vi7 by adding at the end the following3 7,,iii7 through the use of the online counseling tool described in subsection 7o77#a77;,b74 2 and 7,c7 in subparagraph 7,b7-- 7i7 by striking ,the ,secretary and inserting ,in the case of institutions not using the online counseling tool described in subsection 7o77#a77;,b71 the ,secretary2 7ii7 by striking encourage institutions and inserting require such institutions2 7iii7 by inserting 1 during an annual counseling session that is in-person or online1 after the use2 and 7iv7 by striking ,b or2 7#c7 in paragraph 7#b7-- 7,a7 by redesignating subparagraphs 7,c7 through 7,g7 and subparagraphs 7,h7 through 7,k71 as subparagraphs 7,h7 through 7,l71 respectively1 and subparagraphs 7,n7 through 7,q71 respectively2 and 7,b7 by inserting after subparagraph 7,b71 the following3 7,c7 ,an explanation that the borrower is not required to accept the full amount of the loan offered to the borrower4 7,d7 ,an explanation that the borrower should consider accepting any grant1 scholarship1 or ,state or ,federal work-study jobs for which the borrower is eligible prior to accepting ,federal student loans4 7,e7 ,a recommendation to the borrower to exhaust the borrower's ,federal student loan options prior to taking out private loans and a warning that private loans may not offer the same benefits and repayment options as ,federal student loans4 7,f7 ,an explanation of the approved educational expenses for which the borrower may use a loan made under part ,d4 7,g7 ,information on the annual and aggregate loan limits for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans4 2 7,c7 in subparagraph 7,i71 as so redesignated-- 7i7 by striking a loan made under section #dbh;,b or #dbh;,h12 and 7ii7 by striking 1 or a and inserting or a2 7,d7 in subparagraph 7,l71 as so redesignated-- 7i7 in the matter preceding clause 7i71 by striking ,sample and inserting ,for a first-time borrower1 sample2 7ii7 in clause 7i77,i71 by striking loans under section #dbh or #dbh;,h and inserting ,federal ,direct ,stafford ,loans or ,federal ,direct ,unsubsidized ,stafford ,loans2 and 7iii7 in clause 7i77,,ii71 by striking loans under section #dbh1 #dbh;,b1 or #dbh;,h and inserting ,federal ,direct ,,plus ,loans or ,federal ,direct ,unsubsidized ,stafford ,loans2 7,e7 by inserting after subparagraph 7,l71 as so redesignated and amended1 the following3 7,m7 ,for a borrower with an outstanding balance of principal or interest due on a loan made under this title-- 7i7 a statement of the amount of such outstanding balance2 7ii7 based on such outstanding balance1 the anticipated monthly payment amount under each repayment plan that may be available to the borrower2 and 7iii7 based on such outstanding balance plus the anticipated outstanding balance on the loan for which the student is receiving counseling under this subsection and on any other ,federal student loans that the borrower may accept during the borrower's course of study for which the borrower enrolled at the institution1 an estimate of the projected monthly payment amount under each such repayment plan4 2 and 7,f7 in subparagraph 7,q71 as so redesignated-- 7i7 by striking name of and2 and 7ii7 by striking individual and inserting institution's financial aid office or other appropriate office at the institution2 and 7#d7 by adding at the end the following3 7#c7 ,annual loan acceptance ,prior to making the first disbursement of a loan made under part ,d 7other than a ,federal ,direct ,consolidation ,loan or a ,federal ,direct ,,plus loan made on behalf of a student7 to a borrower for an award year1 an eligible institution1 shall1 as part of carrying out the counseling requirements of this subsection for the loan1 ensure that the borrower accepts the loan for such award year by-- 7,a7 signing the master promissory note for the loan2 7,b7 signing and returning to the institution a separate written statement that affirmatively states that the borrower accepts the loan2 or 7,c7 electronically signing an electronic version of the statement described in subparagraph 7,b74 4 #c4 ,exit ,counseling ,section #dhe7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7;b77 is amended-- 7#a7 in paragraph 7#a77;,a7-- 7,a7 in the matter preceding clause 7i7-- 7i7 by striking through financial aid offices or otherwise and inserting through the use of an interactive program1 during an exit counseling session that is in-person or online1 or through the use of the online counseling tool described in subsection 7o77#a77;,a72 7ii7 by redesignating clauses 7i7 through 7ix7 as clauses 7iv7 through 7xii71 respectively2 7iii7 by inserting before clause 7iv71 as so redesignated1 the following3 7i7 a summary of the outstanding balance of principal and interest due on the loans made to the borrower under part ,b1 ,d1 or ,e2 7ii7 an explanation of the grace period preceding repayment and the expected date that the borrower will enter repayment2 7iii7 an explanation that the borrower has the option to pay any interest that has accrued while the borrower was in school or that may accrue during the grace period preceding repayment or during an authorized period of deferment or forbearance1 prior to the capitalization of the interest2 2 7iv7 in clause 7iv71 as so redesignated1 by striking sample information showing the average and inserting information1 based on the borrower's outstanding balance described in clause 7i71 showing the borrower's2 7v7 in clause 7x71 as so redesignated1 by striking consolidation loan under section #dbh;,c or a2 and 7vi7 by adding at the end the following3 7xiii7 for each of the borrower's loans made under part ,b1 ,d1 or ,e for which the borrower is receiving counseling under this subsection1 the contact information for the loan servicer of the loan and a link to such servicer's ,website4 2 7#b7 in paragraph 7#a77;,b7-- 7,a7 by inserting online or before in writing2 and 7,b7 by adding before the period at the end the following3 1 except that in the case of an institution using the online counseling tool described in subsection 7o77#a77;,a71 the ,secretary shall attempt to provide such information to the student in the manner described in subsection 7o77#c77;,c72 and 7#c7 in paragraph 7#b77;,c71 by inserting 1 such as the online counseling tool described in subsection 7o77#a77;,a71 after electronic means4 #d4 ,annual counseling for ,federal ,pell ,grant recipients ,section #dhe of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7 is amended by adding at the end the following3 7n7 ,annual counseling for ,federal ,pell ,grant recipients 7#a7 ,disclosure required prior to disbursement of ,federal ,pell ,grant 7,a7 ,in general ,each eligible institution shall1 prior to the first payment of a ,federal ,pell ,grant to a student for an award year1 ensure that the student receives comprehensive information on the terms and conditions of the ,federal ,pell ,grant in accordance with paragraph 7#b74 ,such information-- 7i7 shall be provided in a simple and understandable manner2 and 7ii7 shall be provided1 for each award year for which the student receives a ,federal ,pell ,grant-- 7,i7 during a counseling session conducted in person2 7,,ii7 online1 with the student acknowledging receipt of the information2 or 7,,iii7 through the use of the online counseling tool described in subsection 7o77#a77;,c74 7,b7 ,use of interactive programs2 joint counseling permitted ,in the case of institutions not using the online counseling tool described in subsection 7o77#a77;,c7-- 7i7 the ,secretary shall require such institutions to carry out the requirements of subparagraph 7,a7 through the use1 during an annual counseling session that is in-person or online1 of interactive programs that test the student's understanding of the terms and conditions of the ,federal ,pell ,grant paid to the student1 using simple and understandable language and clear formatting2 and 7ii7 an annual counseling session described in subclause 7,i7 or 7,,ii7 of subparagraph 7,a77ii7 for a student may be conducted in conjunction with an annual counseling session described in subclause 7,i7 or 7,,ii7 of subsection 7l77#a77;,a77ii7 for such student4 7#b7 ,information to be provided ,the information to be provided to the student under paragraph 7#a77;,a7 shall include the following3 7,a7 ,an explanation of a ,federal ,pell ,grant4 7,b7 ,an explanation of approved educational expenses for which the student may use a ,federal ,pell ,grant4 7,c7 ,an explanation of why a student may have to repay the ,federal ,pell ,grant4 7,d7 ,an explanation of the maximum number of semesters or equivalent for which the student may be eligible to receive a ,federal ,pell ,grant1 and a statement of the amount of time remaining for which the student may be eligible to receive a ,federal ,pell ,grant4 7,e7 ,an explanation of how the student may budget for typical educational expenses and a sample budget based on the cost of attendance for the institution4 7,f7 ,an explanation of how the student may seek additional financial assistance from the institution's financial aid office due to a change in the student's financial circumstances1 and the contact information for such office4 4 #e4 ,online counseling tools ,section #dhe of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7 is further amended by adding at the end the following3 7o7 ,online counseling tools 7#a7 ,in general ,beginning not later than #a year after the date of enactment of the ,empowering ,students ,through ,enhanced ,financial ,counseling ,act1 the ,secretary shall maintain-- 7,a7 an online counseling tool that provides the exit counseling required under subsection 7b7 and meets the applicable requirements of this subsection2 7,b7 an online counseling tool that provides the annual counseling required under subsection 7l7 and meets the applicable requirements of this subsection2 and 7,c7 an online counseling tool that provides the ,federal ,pell ,grant counseling required under subsection 7n7 and meets the applicable requirements of this subsection4 7#b7 ,requirements of tools ,in maintaining the online counseling tools described in paragraph 7#a71 the ,secretary shall ensure-- 7,a7 in the case of the online counseling tools described in subparagraphs 7,a7 and 7,b7 of paragraph 7#a71 each such tool is consumer tested to ensure that the tool is effective in helping students understand their rights and obligations with respect to borrowing a loan made under part ,d2 7,b7 in the case of the online tool described in paragraph 7#a77;,c71 the tool is consumer tested to ensure that such tool is effective in helping students understand their rights and obligations with respect to receiving a ,federal ,pell ,grant2 and 7,c7 each such tool is understandable to students and freely available to all eligible institutions4 7#c7 ,record of counseling completion ,the ,secretary shall-- 7,a7 use each online counseling tool described in paragraph 7#a7 to keep a record of which students have received counseling using the tool1 and notify the applicable institutions of the students' completion of such counseling2 7,b7 in the case of a student who receives annual counseling using the tool described in paragraph 7#a77;,b71 notify the student by when the student should accept1 in a manner described in section #dhe7l77#c71 the loan for which the student has received such counseling2 and 7,c7 in the case of a student described in subsection 7b77#a77;,b7 at an institution that uses the online counseling tool described in paragraph 7#a77;,a7 of this subsection1 the ,secretary shall attempt to provide the information described in subsection 7b77#a77;,a7 to the student through such tool4 4