,,ii #aahth ,,congress #ast ,session ,s4 #bhgg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ba1 #bjbc,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 #a1gjj1jjj1jjj1jjj in student loan debt1 and more than #c1jjj student loan borrowers default on a student loan every day1 many of whom did not complete their educational program before obtaining 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 it1 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 #bjae-bjaf academic year1 the ,department of ,education found that nearly #c in #d students experienced unmet need1 and that unmet need among postsecondary students had risen by #bc percent since the #bjaa-bjab academic year4 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 ,report on the ,economic ,well-,being of ,united ,states ,households in #bjah by the ,federal ,reserve found that #b in #c 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 new1 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 ,purpose ,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 ,eligible educational institution ,the term eligible educational institution means-- 7,a7 an institution of higher education1 as defined in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb72 or 7,b7 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#c7 ,eligible entity ,the term eligible entity means a ,state or a nonprofit organization4 7#d7 ,eligible student ,the term eligible student means an individual who-- 7,a7 is selected to participate in a postsecondary education match savings account program2 7,b7 has been admitted to an eligible educational institution2 7,c7 is a student from a low-income family1 as determined by the eligible entity2 7,d7 successfully completes a required prerequisite personal finance training program2 7,e7 agrees to contribute savings to the postsecondary education match savings account administered by the eligible entity under this section2 and 7,f7 meets any other eligibility criteria as defined by the eligible entity4 7#e7 ,financial capability training platform ,the term ,financial ,capability ,training ,platform means a program for use by a postsecondary education match savings account program carried out with a grant under section #e 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 and 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#f7 ,postsecondary education match savings account ,the term postsecondary education match savings account means an account that is-- 7,a7 a custodial account2 or 7,b7 a #ebi account4 7#g7 ,program guide ,the term ,program ,guide means a guide that includes program policies and procedures1 a savings plan agreement template1 a withdrawal form template1 recommended timelines1 other key forms1 and the structure for implementing and reporting program results for a postsecondary education match savings account program carried out with a grant under this section4 7#h7 ,reporting dashboard ,the term ,reporting ,dashboard means a robust online data portal for postsecondary education match savings account 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 eligible educational institutions2 and 7,c7 is in compliance with the requirements of section #ddd of the ,general ,education ,provisions ,act 7commonly known as the ,family ,educational ,rights and ,privacy ,act of #aigd7 7#bj ,u4,s4,c4 #abcb;g74 7#i7 ,secretary ,the term ,secretary means the ,secretary of ,education4 7#aj7 ,student with preliminary eligibility ,the term student with preliminary eligibility means an individual who-- 7,a7 is from a low-income family1 as determined by an eligible entity2 7,b7 plans to attend an eligible educational institution2 and 7,c7 meets the requirements described in subparagraphs 7,e7 and 7,f7 of paragraph 7#d74 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 postsecondary education 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 #e4 ,postsecondary education match savings account 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 postsecondary education match savings account 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 ,grant under section #dja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a72 and 7,b7 funds deposited in a postsecondary education match 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 under this section 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 program under this section1 the ,secretary shall give priority to eligible entities that-- 7,a7 target eligible students and students with preliminary eligibility at a statewide level with networks of participating eligible educational institutions2 and 7,b7 commit to supporting selected students through the student's graduation from an eligible educational institution4 7#b7 ,diversity of projects ,the ,secretary shall ensure1 to the maximum extent practicable1 that the eligible entities awarded grants 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 with 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 postsecondary education match savings account1 establish a postsecondary education match savings account for each participating eligible student or student with 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 ,upon a participating student or student's family depositing #ajj into a postsecondary education match savings account for the appropriate academic year1 the eligible entity shall provide a match of #h into the student's postsecondary education match savings account for each subsequent dollar deposited by the student or student's family4 7,b7 ,withdrawal from school ,if a participating student withdraws from an eligible educational institution during the drop-add period at that eligible educational 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,c7 ,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 educational 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 eligible student1 or a student with preliminary eligibility1 who does not meet or maintain the requirements of paragraph 7#d7 or 7#aj7 of section #d1 respectively1 shall be entitled to withdraw funds that the student or the student's family contributed to the postsecondary education match savings account in accordance with the terms and conditions that are contained in the agreement for that postsecondary education match savings account1 as described in paragraph 7#a77;,c74 7,b7 ,expiration 7i7 ,in general ,the participation of an eligible student or student with preliminary eligibility in the postsecondary education match savings account demonstration grant program shall terminate on the expiration date described in clause 7ii74 ,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 a postsecondary education match savings account shall be made available for withdrawal in accordance with subparagraph 7,a74 7ii7 ,expiration date ,the expiration date described in this clause is-- 7,i7 the date that is #h years after the date on which a participating eligible student first enrolled in an eligible educational institution2 or 7,,ii7 in the case of a student with preliminary eligibility1 or a participating eligible student who does not enroll in an eligible educational institution1 the date that is #d years after the date on which the student first agrees to participate in the postsecondary education match savings account demonstration grant program4 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 nonadministrative 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 section shall enter into a data sharing agreement with eligible educational 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 ,family ,educational ,rights and ,privacy ,act of #aigd7 7#bj ,u4,s4,c4 #abcb;g74 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 students making a deposit into a postsecondary education match savings account supported under this section4 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 participating eligible 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 postsecondary education match savings accounts by participating students and their families4 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 #a year after the establishment of the demonstration project under this section1 the ,secretary shall prepare and submit to ,congress a report containing the following information3 7#a7 ,the effects of incentives and organizational or institutional support on postsecondary 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 postsecondary education match savings accounts on savings rates and postsecondary education 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 section and whether a permanent postsecondary education savings grant program should be established4 7#e7 ,the characteristics of postsecondary education match 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 may reserve not more than #aj percent of the amounts appropriated under section #f to provide technical assistance to eligible entities receiving grants under this section4 #f4 ,authorization of appropriations ,there are authorized to be appropriated to carry out this ,act #ajj1jjj1jjj for fiscal year #bjbd and each of the succeeding #d years4