,i  #aadth ,,congress  #b;d ,session    
,h4 ,r4 #ejaf  ,,in ,,the ,,house ,,of  
,,representatives  ,april #bj1 #bjaf    
,mr4 ,salmon introduced the following   
bill2 which was referred to the         
,committee on ,education and the        
,workforce  ,a ,,bill  ,to amend the    
,higher ,education ,act of #aife to     
require the ,secretary of ,education to 
provide student borrowers with          
instruction in general principles of    
financial literacy through its online   
counseling tool1 and for other purposes4
  #a4 ,short title ,this ,act may be    
cited as the ,financial ,literacy for   
,financial ,aid ,act4  #b4 ,online      
counseling tools  7a7 ,option for       
institutions of higher education        
,section #dhe7l77#a77;,a77ii7 of the    
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajib7l77#a77;,a77ii77 is     
amended--  7#a7 in subclause 7,,ii71 by 
striking or at the end2  7#b7 in        
subclause 7,,iii71 by striking the      
period at the end and inserting 2 or2   

and  7#c7 by adding at the end the      
following3  7,,iv7 through the use of   
the online counseling tool described in 
subsection 7n74  4  7b7 ,requirements   
for ,secretary of ,education ,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  7n7 ,online counseling tools
  7#a7 ,in general ,beginning not later 
than #a year after the date of the      
enactment of the ,financial ,literacy   
for ,financial ,aid ,act1 the ,secretary
 shall maintain an online counseling    
tool that-- 7,a7 provides the entrance  
counseling required under subsection    
7l72 and  7,b7 meets the applicable     
requirements of this subsection4  7#b7  
,requirements of tools ,in maintaining  
the online counseling tool described in 
paragraph 7#a71 the ,secretary shall    
ensure that the tool is--  7,a7 consumer
 tested1 in consultation with other     
relevant ,federal agencies1 to ensure   
that the tool is effective in helping   

individuals understand the information  
described in subsection 7l77#b72  7,b7  
interactive and tests the borrower's    
understanding of the information        
described in subsection 7l77#b72  7,c7  
understandable to borrowers of loans    
made under part ,d2  7,d7 effective in  
providing instruction in general        
financial literacy in accordance with   
paragraph 7#c7 of this subsection2 and  
7,e7 freely available to all eligible   
institutions4  7#c7 ,general principles 
of financial literacy ,the ,secretary   
shall ensure that the online counseling 
tool provides instruction in general    
principles of financial literacy1       
including the following3  7,a7 ,personal
 income ,an explanation of-- 7i7 how to 
identify various types of income and    
expenses2  7ii7 gross and net pay and   
how to read a paycheck stub2 and  7iii7 
how to craft financial goals4  7,b7     
,taxes ,an explanation of-- 7i7 the     
history of taxes2  7ii7 the purpose and 
uses of taxes2 and  7iii7 how to        

differentiate between types of taxes4   
7,c7 ,retirement ,an explanation of--   
7i7 the importance of planning for      
retirement2  7ii7 retirement strategies 
to achieve financial goals2  7iii7 how  
to differentiate among the types of     
investment vehicles for retirement2 and 
7iv7 how to assess overall financial    
situation in determining retirement     
needs4  7,d7 ,spending plans and banking
 resources ,an explanation of--  7i7 the
 benefits of transaction and savings    
accounts2  7ii7 how compound interest   
helps saved money grow2 and  7iii7 how  
to define and create a spending plan4   
7,e7 ,credit cards ,an explanation of-- 
7i7 how to define and calculate the cost
 of borrowing2  7ii7 the difference     
between good debt and bad debt2  7iii7  
credit cards and how to evaluate credit 
card offers2  7iv7 consumer credit      
rights2 and  7v7 credit scores4  7,f7   
,financial recovery and giving back ,an 
explanation of--  7i7 how to assess     
financial health2  7ii7 how to budget2  

7iii7 how to find ways to reduce        
expenses or increase income2  7iv7 the  
difference between credit repair and    
credit consolidation2  7v7 the          
importance of charitable giving2 and    
7vi7 how to define future financial     
goals4  7#d7 ,record of counseling      
completion ,the ,secretary shall use the
 online counseling tool described in    
paragraph 7#a7 to keep a record of which
 individuals have received counseling   
using the tool1 and notify the          
applicable institutions of the          
individual's completion of such         
counseling4  4  #c4 ,report ,not later  
than #b years after the date of the     
enactment of this ,act1 and not less    
than once every #c years thereafter1 the
 ,secretary shall submit to the         
,committee on ,education and the        
,workforce of the ,house of             
,representatives1 and the ,committee on 
,health1 ,education1 ,labor1 and        
,pensions of the ,senate1 a written     
report that includes an evaluation of   

the effectiveness of the instruction in 
general principles of financial literacy
 described in section #dhe7n77#c7 of the
 ,higher ,education ,act of #aife 7#bj  
,u4,s4,c4 #ajib7n77#c771 as added by    
this ,act4