,,ii #aafth ,,congress #b;d ,session ,s4 #cdgg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ab1 #bjbj,ms4 ,sinema 7for herself and ,mr4 ,romney7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to establish a matched savings program for low-income students4 #a4 ,short title ,this ,act may be cited as the ,earn to ,learn ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,skyrocketing costs of higher education are outpacing available financial aid4 ,individuals in the ,united ,states owe more than #a1ejj1jjj1jjj1jjj in student loan debt1 and more than #c1jjj student loan borrowers default on a student loan every day1 many of whom left college before finishing a degree4 7#b7 ,the cost of paying for public higher education and workforce training programs continues to rise while the purchasing power of ,federal ,pell ,grant aid has significantly diminished4 7#c7 ,the confluence of these issues forces prospective students to make the tough choice between foregoing postsecondary education and borrowing enough money to pay for college1 an amount that is often many times their annual salary and can remain a financial burden for decades after these students graduate4 7#d7 ,the higher rates of loan delinquencies and default among low- and moderate-income populations often lead to increased financial hardship1 fewer assets1 and lower net worth4 7#e7 ,in #bjac1 the ,brookings ,institute found that the increasing debt burden represents a drag on recent graduates and also serves as a deterrent to would-be students who may question the trade-off between the debt burden and the payoff of a college degree4 7#f7 ,during the academic year #bjae-bjaf the ,department of ,education found that nearly #c in #d students experience unmet need1 and that unmet need among college students has risen by #bc percent since academic year #bjaa-bjab4 7#g7 ,the ,federal ,reserve ,system has determined student loan payments are displacing retirement savings1 home ownership1 small business development1 and other forms of building wealth4 7#h7 ,the ,economic ,well-,being of ,u4,s4 ,households in #bjah report by the ,federal ,reserve found that two-thirds of graduates with a bachelor's degree or higher feel that their educational investment paid off financially1 but only #c in #aj students who started higher education programs but did not complete a degree share this view4 7#i7 ,the ,united ,states urgently needs a new national1 innovative approach to financial aid to help low-income students achieve their educational goals1 graduate with affordable amounts of student loan debt1 and improve their financial capability4 #c4 ,purposes ,it is the purpose of this ,act to-- 7#a7 establish a proven and innovative matched savings program for low-income students that provides the financial resources and support those students need to attain their educational goals2 7#b7 provide a much-needed supplement to traditional financial aid options through matched savings2 7#c7 give students the tools to succeed by giving students the opportunity to invest in their education and to improve their financial capability through financial empowerment training and success coaching2 and 7#d7 help students-- 7,a7 develop healthy financial habits and life skills2 7,b7 prepare to embark on a lifetime of healthy financial practices after graduation2 and 7,c7 minimize or eliminate student loan debt4 #d4 ,definitions ,in this ,act3 7#a7 #ebi account ,the term #ebi account means a qualified tuition program as defined in section #ebi7;b7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,cost of attendance ,the term cost of attendance has the meaning given that term in section #dgb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgll74 7#c7 ,custodial account ,the term custodial account means a financial account established for the benefit of an eligible student1 which shall be treated as a trust if the assets of the custodial account are held by a bank 7as defined in section #djh7n7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #djh 7n777 or another person who demonstrates1 to the satisfaction of the ,secretary1 that the manner in which such person will administer the custodial account will be consistent with the requirements of this ,act4 7#d7 ,educational savings account ,the term educational savings account means an account that is-- 7,a7 a custodial account2 or 7,b7 a #ebi account4 7#e7 ,eligible educational institution ,the term eligible educational institution means the following3 7,a7 ,institution of higher education ,an institution of higher education1 as defined in section #aja or #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja1 #ajjb74 7,b7 ,area career and technical education school ,an area career and technical education school1 as defined in section #c7c7 of the ,carl ,d4 ,perkins ,career and ,technical ,education ,act of #bjjf 7#bj ,u4,s4,c4 #bcjb7c774 7#f7 ,eligible entity ,the term eligible entity means a ,state or a nonprofit organization4 7#g7 ,eligible student 7,a7 ,in ,general ,the term eligible student means an individual who-- 7i7 is selected to participate in a college match savings program2 7ii7 has been admitted to an institution of higher education2 7iii7 is a student from a low-income family1 as determined by the eligible entity2 7iv7 successfully completes a required prerequisite personal finance training program2 7v7 agrees to contribute savings to the educational savings account administered by the eligible entity under this section2 7vi7 has submitted a ,free ,application for ,federal ,student ,aid 7,,fafsa72 and 7vii7 meets any other eligibility criteria as defined by the eligible entity4 7,b7 ,preliminary eligibility ,notwithstanding subparagraph 7,a71 a student may be selected to participate in the college match savings program on a preliminary basis and given an educational savings account if the student is from a low-income family1 as determined by the eligible entity1 who plans to attend an institution of higher education4 7#h7 ,financial ,capability ,training ,platform ,the term ,financial ,capability ,training ,platform means a program for use by a college match savings program carried out with a grant under this section that-- 7,a7 delivers financial capability training to participating students that is designed to help students improve their financial capability and overall financial well-being2 7,b7 includes an initial assessment to identify individual learning goals and objectives2 7,c7 creates a personal and dynamic learning experience for each individual participant1 including ongoing assessments as well as interim milestones related to learning objectives and longer-term goals2 and 7,d7 includes modules on student loans1 financial aid1 budgeting and credit1 consumer debt1 housing costs1 retirement1 the importance of emergency savings1 banking 7including checking and savings accounts71 credit use and interest rates1 predatory lending practices1 privacy1 and security1 which shall be conducted by or at the direction of the eligible entity4 7#i7 ,program ,guide ,the term ,program ,guide means a guide that includes program policies and procedures1 a savings plan agreement template1 withdrawal form template1 recommended timelines1 other key forms1 and the structure for implementing and reporting program results for a college match savings program carried out with a grant under this section4 7#aj7 ,reporting ,dashboard ,the term ,reporting ,dashboard means a robust online data portal for college match savings programs carried out with a grant under this section that-- 7,a7 allows eligible entities to monitor student progress1 track achievement1 and measure relevant behavioral change2 7,b7 standardizes and facilitates student evaluation across participating institutions2 and 7,c7 is in compliance with the requirements of section #ddd of the ,general ,education ,provisions ,act 7commonly known as the #8,family ,educational ,rights and ,privacy ,act of #aigd'74 7#aa7 ,success ,coaching ,model ,the term ,success ,coaching ,model includes-- 7,a7 financial capability training to address budgeting1 managing student debt1 savings1 debit management1 credit cards1 retirement readiness1 and credit reports2 7,b7 college readiness training that provides mentoring to help students be better prepared for the challenges of postsecondary education2 and 7,c7 workforce readiness training to learn interviewing1 resume skills1 and career exploration4 7#ab7 ,secretary ,the term ,secretary means the ,secretary of ,education4 #e4 ,college savings demonstration grant program 7a7 ,grant established 7#a7 ,in ,general ,not later than #i months after the date of enactment of this ,act1 the ,secretary shall establish a college matched savings demonstration grant program described in this section1 through which the ,secretary shall award grants1 on a competitive basis1 to eligible entities to enable those eligible entities to carry out the activities described in subsection 7e74 7#b7 ,tools for grantees ,the ,secretary shall develop the ,reporting ,dashboard1 ,financial ,capability ,training ,platform1 ,program ,guide1 and ,success ,coaching ,model and make those tools available to grantees4 7#c7 ,pell eligibility not affected ,the ,secretary shall ensure that1 notwithstanding any other provision of law-- 7,a7 participation in the grant program shall not affect a student's eligibility for a ,federal ,pell ,grant2 and 7,b7 funds deposited in an educational savings account by a participating student1 as well as any matching funds under this section1 shall not be considered when a determination is made about that student's eligibility for ,federal student aid under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq471 including for a ,federal ,pell ,grant4 7b7 ,application ,an eligible entity that desires to participate in the grant program shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may determine1 including1 at a minimum-- 7#a7 a demonstration of-- 7,a7 a commitment of non-,federal matching funds at a ratio of #a3a 7which non-,federal funds may be provided by an entity other than the eligible entity72 7,b7 the ability to launch and implement the program2 and 7,c7 a plan for compliance with evaluation and program monitoring2 and 7#b7 an assurance that the applicant will utilize the ,reporting ,dashboard1 ,financial ,capability ,training ,platform1 and ,success ,coaching ,model developed by the ,secretary under subsection 7a77#b74 7c7 ,selection 7#a7 ,priority ,in selecting eligible entities to participate in the grant program1 the ,secretary shall give priority to eligible entities that-- 7,a7 target individuals at a statewide level with networks of participating eligible educational institutions2 and 7,b7 commit to supporting selected eligible students through the student's graduation from an institution of higher education4 7#b7 ,diversity of projects ,the ,secretary shall ensure1 to the maximum extent practical1 that the grants awarded under this section include eligible entities that represent a range of communities 7both rural and urban7 and diverse populations4 7d7 ,amount ,a grant awarded under this section shall be in an amount not to exceed the lesser of-- 7#a7 the aggregate amount of funds committed as matching contributions from non-,federal public or private sector sources2 or 7#b7 #aj1jjj1jjj4 7e7 ,uses of funds 7#a7 ,in ,general ,an eligible entity receiving a grant under this section shall use the grant funds to-- 7,a7 select eligible students1 or students who may have preliminary eligibility1 in the ,state in which the eligible entity is located to participate in the grant program2 7,b7 provide selected students with financial literacy education using the ,success ,coaching ,model2 7,c7 after ensuring that a selected eligible student or selected student with preliminary eligibility has completed an agreement regarding the terms and conditions of the educational savings account1 establish an educational savings account for each participating eligible student or student who has preliminary eligibility and allow students and their families to deposit funds in that account to save for attendance at an eligible educational institution2 and 7,d7 reserve matching funds for participating students in accordance with paragraph 7#b74 7#b7 ,matching funds 7,a7 ,in ,general ,for each #a that a student or student's family contributes to the student's educational savings account for an academic year1 up to a maximum of #ejj in contributions1 the eligible entity shall pay #h to the student's individual account at the student's eligible educational institution once that student meets the requirements of section #d7g77;,a74 7,b7 ,carry over ,any amounts that a student or student's family contributes to such account that are above #ejj for that year may be carried over and considered as contributions that are eligible to be matched in accordance with subparagraph 7,a7 for the following year4 7,c7 ,withdrawal from school ,if a participating student withdraws from an eligible institution during the drop-add period at that eligible institution1 the student shall be responsible for any amounts owed for that academic period and will not receive matching funds for that academic period4 7,d7 ,delay of attendance2 extenuating circumstances ,subject to paragraph 7#c71 each eligible entity shall describe in the agreement under paragraph 7#a77;,c7 the eligible entity's policy regarding the availability of matching funds in the event a student decides to delay attendance at an eligible institution or in the case of extenuating circumstances1 such as illness of a student4 7#c7 ,return of deposited funds 7,a7 ,in ,general ,each eligible entity shall ensure that a participating student1 including a student with preliminary eligibility1 who does not meet or maintain the requirements of section #d7g77;,a7 shall be entitled to withdraw funds that the student or the student's family contributed to the educational savings account in accordance with the terms and conditions that are contained in the agreement for that educational savings account1 as described in paragraph 7#a77;,c74 7,b7 ,expiration ,on the date that is #f years after the date on which a participating eligible student first enrolled in an eligible educational institution1 that student's participation in the college matched savings demonstration grant program shall terminate4 ,the eligible entity shall cease reserving matching funds on behalf of that student as described in paragraph 7#a77;,d74 ,any remaining funds that the student or the student's family deposited in an educational savings account shall be made available for withdrawal in accordance with subparagraph 7,a74 7#d7 ,management costs ,an eligible entity receiving a grant under this section may use not more than #e percent of grant funds for management costs1 which may include nonadminstrative and administrative functions1 including program management1 reporting requirements1 recruitment and enrollment of individuals1 and monitoring4 7f7 ,data sharing ,an eligible entity receiving a grant under this ,act shall enter into a data sharing agreement with eligible institutions in order to exchange data necessary to carry out the activities described in this section4 ,such data sharing shall be carried out in a manner that complies with the requirements of section #ddd of the ,general ,education ,provisions ,act 7commonly known as the #8,family ,educational ,rights and ,privacy ,act of #aigd'74 7g7 ,annual progress reports ,each eligible entity receiving a grant under this section shall prepare and submit to the ,secretary an annual progress report containing the following information1 in the aggregate and in a manner that protects personally identifiable information in accordance with ,federal privacy laws3 7#a7 ,the number and characteristics of participating eligible students making a deposit into an educational savings account4 7#b7 ,data on program goals and achievements including enrollment rates1 first-year retention rates1 program completion1 average ,federal student loan debt1 and share of students borrowing ,federal student loans4 7#c7 ,the amount that the eligible entity has reserved in accordance with subsection 7e77#a77;,d74 7#d7 ,the aggregate amounts deposited in educational savings accounts by students and their families1 without including any personally identifiable information4 7#e7 ,what service configurations of the eligible entity 7such as configurations relating to peer support1 structured planning exercises1 mentoring1 and case management7 increased the rate and consistency of participation in the demonstration project and how such configurations varied among different populations or communities4 7#f7 ,such other information as the ,secretary may require to evaluate the demonstration project4 7h7 ,report to ,congress ,not later than #ab months after the establishment of this demonstration project1 the ,secretary of ,education shall prepare and submit to ,congress a report containing the following information3 7#a7 ,the effects of incentives and organizational or institutional support on college retention in the demonstration project4 7#b7 ,the savings rates of individuals in the demonstration project1 in the aggregate and disaggregated by demographic characteristics including gender1 age1 family size1 race or ethnic background1 and income4 7#c7 ,the effects of educational savings accounts on savings rates1 college retention and completion1 and how such effects vary among different populations or communities4 7#d7 ,the lessons to be learned from the demonstration projects conducted under this ,act and whether a permanent college savings grant program should be established4 7#e7 ,the characteristics of educational savings accounts 7such as threshold amounts and match rates7 required to stimulate participation in the demonstration project1 and how such characteristics vary among different populations or communities4 7#f7 ,such other factors as may be prescribed by the ,secretary4 7i7 ,technical assistance ,the ,secretary of ,education may reserve not more than #aj percent of the amounts appropriated under this section to provide technical assistance to eligible entities receiving grants under this ,act4 #f4 ,authorization of appropriations ,there are authorized to be appropriated to carry out this ,act #ajj1jjj1jjj for fiscal year #bjbj and each of the succeeding #d years4