,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bhgg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ba1         
#bjbc,ms4 ,s9ema 7= h]self & ,mr4       
,romney7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to e/abli% a mat*$ sav+s    
program = l[-income /ud5ts4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,e>n to 
,le>n ,act4  #b4 ,f9d+s ,congress f9ds !
 foll[+3 7#a7 ,skyrocket+ co/s ( high]  
education are outpac+ available f9ancial
 aid4 ,individuals 9 ! ,unit$ ,/ates owe
 m ?an #a1gjj1jjj1jjj1jjj 9 /ud5t loan  
debt1 & m ?an #c1jjj /ud5t loan borr[]s 
default on a /ud5t loan e day1 _m ( :om 
did n complete _! educational program   
be=e obta9+ a degree4  7#b7 ,! co/ (    
pay+ = public high] education & work=ce 
tra9+ programs cont9ues to rise :ile !  
pur*as+ p[] ( ,f$]al ,pell ,grant aid   
has significantly dim9i%$4  7#c7 ,!     
conflu5ce ( ^! issues =ces prospective  
/ud5ts to make ! t\gh *oice betwe5 =ego+

 po/second>y education & borr[+ en\gh   
money to pay = x1 an am\nt t is (t5 _m  
times _! annual sal>y & c rema9 a       
f9ancial burd5 = decades aft] ^! /ud5ts 
graduate4  7#d7 ,! high] rates ( loan   
del9qu5cies & default among l[- &       
mod]ate-income populations (t5 lead to  
increas$ f9ancial h>d%ip1 few] assets1 &
 l[] net wor?4  7#e7 ,9 #bjac1 !        
,brook+s ,in/itute f\nd t ! increas+    
debt burd5 repres5ts a drag on rec5t    
graduates & also s]ves z a det]r5t to   
w\ld-be /ud5ts :o may "q ! trade-(f     
betwe5 ! debt burd5 & ! pay(f ( a       
college degree4  7#f7 ,dur+ ! #bjae-bjaf
 academic ye>1 ! ,dep>tm5t ( ,education 
f\nd t ne>ly #c 9 #d /ud5ts exp]i5c$    
unmet ne$1 & t unmet ne$ among          
po/second>y /ud5ts _h ris5 by #bc p]c5t 
s9ce ! #bjaa-bjab academic ye>4  7#g7 ,!
 ,f$]al ,res]ve ,sy/em has det]m9$ /ud5t
 loan paym5ts are displac+ retirem5t    
sav+s1 home own]%ip1 small bus9ess      
developm5t1 & o!r =ms ( build+ weal?4   
7#h7 ,! ,report on ! ,economic          

,well-,be+ ( ,unit$ ,/ates ,h\seholds 9 
#bjah by ! ,f$]al ,res]ve f\nd t #b 9 #c
 graduates ) a ba*elor's degree or high]
 feel t _! educational inve/m5t paid (f 
f9ancially1 b only #c 9 #aj /ud5ts :o   
/>t$ high] education programs b did n   
complete a degree %>e ?is view4  7#i7 ,!
 ,unit$ ,/ates urg5tly ne$s a new1      
innovative approa* to f9ancial aid to   
help l[-income /ud5ts a*ieve _!         
educational goals1 graduate ) af=dable  
am\nts ( /ud5t loan debt1 & improve _!  
f9ancial capability4  #c4 ,purpose ,x is
 ! purpose ( ?is ,act to-- 7#a7 e/abli% 
a prov5 & innovative mat*$ sav+s program
 = l[-income /ud5ts t provides !        
f9ancial res\rces & support ^? /ud5ts   
ne$ to atta9 _! educational goals2  7#b7
 provide a mu*-ne$$ supplem5t to        
traditional f9ancial aid options ?r\gh  
mat*$ sav+s2  7#c7 give /ud5ts ! tools  
to succe$ by giv+ /ud5ts ! opportunity  
to inve/ 9 _! education & to improve _! 
f9ancial capability ?r\gh f9ancial      
emp[]m5t tra9+ & success coa*+2 &  7#d7 

help /ud5ts-- 7,a7 develop heal?y       
f9ancial habits & life skills2  7,b7    
prep>e to emb>k on a lifetime ( heal?y  
f9ancial practices aft] graduation2 &   
7,c7 m9imize or elim9ate /ud5t loan     
debt4  #d4 ,def9itions ,9 ?is ,act3 7#a7
 #ebi acc\nt ,! t]m #ebi acc\nt means a 
qualifi$ tuition program z def9$ 9      
section #ebi7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf4  7#b7 ,eligible          
educational in/itution ,! t]m eligible  
educational in/itution means-- 7,a7 an  
in/itution ( high] education1 z def9$ 9 
section #ajb ( ! ,high] ,education ,act 
( #aife 7#bj ,u4,s4,c4 #ajjb72 or  7,b7 
an area c>e] & te*nical education s*ool1
 z def9$ 9 section #c7c7 ( ! ,c>l ,d4   
,p]k9s ,c>e] & ,te*nical ,education ,act
 ( #bjjf 7#bj ,u4,s4,c4 #bcjb7c774  7#c7
 ,eligible entity ,! t]m eligible entity
 means a ,/ate or a nonpr(it            
organization4  7#d7 ,eligible /ud5t ,!  
t]m eligible /ud5t means an individual  
:o-- 7,a7 is select$ to p>ticipate 9 a  
po/second>y education mat* sav+s acc\nt 

program2  7,b7 has be5 admitt$ to an    
eligible educational in/itution2  7,c7  
is a /ud5t f a l[-income family1 z      
det]m9$ by ! eligible entity2  7,d7     
successfully completes a requir$        
pr]equisite p]sonal f9ance tra9+        
program2  7,e7 agrees to contribute     
sav+s to ! po/second>y education mat*   
sav+s acc\nt adm9i/]$ by ! eligible     
entity "u ?is section2 &  7,f7 meets any
 o!r eligibility crit]ia z def9$ by !   
eligible entity4  7#e7 ,f9ancial        
capability tra9+ plat=m ,! t]m ,f9ancial
 ,capability ,tra9+ ,plat=m means a     
program = use by a po/second>y education
 mat* sav+s acc\nt program c>ri$ out ) a
 grant "u section #e t-- 7,a7 deliv]s   
f9ancial capability tra9+ to p>ticipat+ 
/ud5ts t is design$ to help /ud5ts      
improve _! f9ancial capability & ov]all 
f9ancial well-be+2  7,b7 includes an    
initial assessm5t to id5tify individual 
le>n+ goals & objectives2  7,c7 creates 
a p]sonal & dynamic le>n+ exp]i5ce = ea*
 individual p>ticipant1 includ+ ongo+   

assessm5ts & int]im mile/ones relat$ to 
le>n+ objectives & long]-t]m goals2 &   
7,d7 includes modules on /ud5t loans1   
f9ancial aid1 budget+ & cr$it1 consum]  
debt1 h\s+ co/s1 retirem5t1 ! importance
 ( em]g5cy sav+s1 bank+ 7includ+ *eck+ &
 sav+s acc\nts71 cr$it use & int]e/     
rates1 pr$atory l5d+ practices1 privacy1
 & security1 :i* %all be conduct$ by or 
at ! direction ( ! eligible entity4     
7#f7 ,po/second>y education mat* sav+s  
acc\nt ,! t]m po/second>y education mat*
 sav+s acc\nt means an acc\nt t is--    
7,a7 a cu/odial acc\nt2 or  7,b7 a #ebi 
acc\nt4  7#g7 ,program guide ,! t]m     
,program ,guide means a guide t includes
 program policies & proc$ures1 a sav+s  
plan agreem5t template1 a )drawal =m    
template1 recomm5d$ timel9es1 o!r key   
=ms1 & ! /ructure = implem5t+ & report+ 
program results = a po/second>y         
education mat* sav+s acc\nt program     
c>ri$ out ) a grant "u ?is section4     
7#h7 ,report+ da%bo>d ,! t]m ,report+   
,da%bo>d means a robu/ onl9e data portal

 = po/second>y education mat* sav+s     
acc\nt programs c>ri$ out ) a grant "u  
?is section t-- 7,a7 all[s eligible     
entities to monitor /ud5t progress1     
track a*ievem5t1 & measure relevant     
behavioral *ange2  7,b7 /&>dizes &      
facilitates /ud5t evaluation across     
p>ticipat+ eligible educational         
in/itutions2 &  7,c7 is 9 compliance ) !
 requirem5ts ( section #ddd ( ! ,g5]al  
,education ,provisions ,act 7commonly   
kn[n z ! ,family ,educational ,rights & 
,privacy ,act ( #aigd7 7#bj ,u4,s4,c4   
#abcb;g74  7#i7 ,secret>y ,! t]m        
,secret>y means ! ,secret>y (           
,education4  7#aj7 ,/ud5t ) prelim9>y   
eligibility ,! t]m /ud5t ) prelim9>y    
eligibility means an individual :o--    
7,a7 is f a l[-income family1 z det]m9$ 
by an eligible entity2  7,b7 plans to   
att5d an eligible educational           
in/itution2 &  7,c7 meets ! requirem5ts 
describ$ 9 subp>agraphs 7,e7 & 7,f7 (   
p>agraph 7#d74  7#aa7 ,success coa*+    
model ,! t]m ,success ,coa*+ ,model     

includes-- 7,a7 f9ancial capability     
tra9+ to address budget+1 manag+ /ud5t  
debt1 sav+s1 debit managem5t1 cr$it     
c>ds1 retirem5t read9ess1 & cr$it       
reports2  7,b7 po/second>y education    
read9ess tra9+ t provides m5tor+ to help
 /ud5ts be bett] prep>$ = ! *all5ges (  
po/second>y education2 &  7,c7 work=ce  
read9ess tra9+ to le>n int]view+1 resume
 skills1 & c>e] exploration4  #e4       
,po/second>y education mat* sav+s acc\nt
 demon/ration grant program  7a7 ,grant 
e/abli%$  7#a7 ,9 g5]al ,n lat] ?an #i  
mon?s aft] ! date ( enactm5t ( ?is ,act1
 ! ,secret>y %all e/abli% a po/second>y 
education mat* sav+s acc\nt demon/ration
 grant program describ$ 9 ?is section1  
?r\gh :i* ! ,secret>y %all aw>d grants1 
on a competitive basis1 to eligible     
entities to enable ^? eligible entities 
to c>ry out ! activities describ$ 9     
subsection 7e74  7#b7 ,tools = grantees 
,! ,secret>y %all develop ! ,report+    
,da%bo>d1 ,f9ancial ,capability ,tra9+  
,plat=m1 ,program ,guide1 & ,success    

,coa*+ ,model & make ^? tools available 
to grantees4  7#c7 ,pell eligibility n  
affect$ ,! ,secret>y %all ensure t1     
not)/&+ any o!r provision ( law-- 7,a7  
p>ticipation 9 ! grant program %all n   
affect a /ud5t's eligibility = a ,f$]al 
,pell ,grant "u section #dja ( ! ,high] 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgj;a72 &  7,b7 funds deposit$ 9 a    
po/second>y education mat* sav+s acc\nt 
by a p>ticipat+ /ud5t1 z well z any     
mat*+ funds "u ?is section1 %all n be   
consid]$ :5 a det]m9ation is made ab\t t
 /ud5t's eligibility = ,f$]al /ud5t aid 
"u title ,,iv ( ! ,high] ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ajgj et seq471 
includ+ = a ,f$]al ,pell ,grant4  7b7   
,application ,an eligible entity t      
desires to p>ticipate 9 ! grant program 
"u ?is section %all submit an           
application to ! ,secret>y at su* "t1 9 
su* mann]1 & conta9+ su* in=mation z !  
,secret>y may det]m9e1 includ+1 at a    
m9imum-- 7#a7 a demon/ration (-- 7,a7 a 
commitm5t ( non-,f$]al mat*+ funds at a 

ratio ( #a3a 7:i* non-,f$]al funds may  
be provid$ by an entity o!r ?an !       
eligible entity72  7,b7 ! ability to    
laun* & implem5t ! program2 &  7,c7 a   
plan = compliance ) evaluation & program
 monitor+2 &  7#b7 an assurance t !     
applicant w utilize ! ,report+ ,da%bo>d1
 ,f9ancial ,capability ,tra9+ ,plat=m1 &
 ,success ,coa*+ ,model develop$ by !   
,secret>y "u subsection 7a77#b74  7c7   
,selection  7#a7 ,priority ,9 select+   
eligible entities to p>ticipate 9 !     
grant program "u ?is section1 !         
,secret>y %all give priority to eligible
 entities t-- 7,a7 t>get eligible /ud5ts
 & /ud5ts ) prelim9>y eligibility at a  
/atewide level ) networks ( p>ticipat+  
eligible educational in/itutions2 &     
7,b7 commit to support+ select$ /ud5ts  
?r\gh ! /ud5t's graduation f an eligible
 educational in/itution4  7#b7 ,div]sity
 ( projects ,! ,secret>y %all ensure1 to
 ! maximum ext5t practicable1 t !       
eligible entities aw>d$ grants "u ?is   
section include eligible entities t     

repres5t a range ( communities 7bo?     
rural & urban7 & div]se populations4    
7d7 ,am\nt ,a grant aw>d$ "u ?is section
 %all be 9 an am\nt n to exce$ ! less]  
(-- 7#a7 ! aggregate am\nt ( funds      
committ$ z mat*+ contributions f        
non-,f$]al public or private sector     
s\rces2 or  7#b7 #aj1jjj1jjj4  7e7 ,uses
 ( funds  7#a7 ,9 g5]al ,an eligible    
entity receiv+ a grant "u ?is section   
%all use ! grant funds to-- 7,a7 select 
eligible /ud5ts1 or /ud5ts ) prelim9>y  
eligibility1 9 ! ,/ate 9 :i* ! eligible 
entity is locat$ to p>ticipate 9 ! grant
 program2  7,b7 provide select$ /ud5ts )
 f9ancial lit]acy education us+ !       
,success ,coa*+ ,model2  7,c7 aft]      
ensur+ t a select$ eligible /ud5t or    
select$ /ud5t ) prelim9>y eligibility   
has complet$ an agreem5t reg>d+ ! t]ms &
 conditions ( ! po/second>y education   
mat* sav+s acc\nt1 e/abli% a po/second>y
 education mat* sav+s acc\nt = ea*      
p>ticipat+ eligible /ud5t or /ud5t )    
prelim9>y eligibility & all[ /ud5ts & _!

 families to deposit funds 9 t acc\nt to
 save = att5dance at an eligible        
educational in/itution2 &  7,d7 res]ve  
mat*+ funds = p>ticipat+ /ud5ts 9       
accordance ) p>agraph 7#b74  7#b7 ,mat*+
 funds  7,a7 ,9 g5]al ,^u a p>ticipat+  
/ud5t or /ud5t's family deposit+ #ajj   
into a po/second>y education mat* sav+s 
acc\nt = ! appropriate academic ye>1 !  
eligible entity %all provide a mat* ( #h
 into ! /ud5t's po/second>y education   
mat* sav+s acc\nt = ea* subsequ5t doll> 
deposit$ by ! /ud5t or /ud5t's family4  
7,b7 ,)drawal f s*ool ,if a p>ticipat+  
/ud5t )draws f an eligible educational  
in/itution dur+ ! drop-add p]iod at t   
eligible educational in/itution1 ! /ud5t
 %all be responsible = any am\nts ow$ = 
t academic p]iod & w n receive mat*+    
funds = t academic p]iod4  7,c7 ,delay (
 att5dance2 ext5uat+ circum/ances       
,subject to p>agraph 7#c71 ea* eligible 
entity %all describe 9 ! agreem5t "u    
p>agraph 7#a77;,c7 ! eligible entity's  
policy reg>d+ ! availability ( mat*+    

funds 9 ! ev5t a /ud5t decides to delay 
att5dance at an eligible educational    
in/itution or 9 ! case ( ext5uat+       
circum/ances1 su* z illness ( a /ud5t4  
7#c7 ,return ( deposit$ funds  7,a7 ,9  
g5]al ,ea* eligible entity %all ensure t
 a p>ticipat+ eligible /ud5t1 or a /ud5t
 ) prelim9>y eligibility1 :o does n meet
 or ma9ta9 ! requirem5ts ( p>agraph 7#d7
 or 7#aj7 ( section #d1 respectively1   
%all be entitl$ to )draw funds t ! /ud5t
 or ! /ud5t's family contribut$ to !    
po/second>y education mat* sav+s acc\nt 
9 accordance ) ! t]ms & conditions t are
 conta9$ 9 ! agreem5t = t po/second>y   
education mat* sav+s acc\nt1 z describ$ 
9 p>agraph 7#a77;,c74  7,b7 ,expiration 
7i7 ,9 g5]al ,! p>ticipation ( an       
eligible /ud5t or /ud5t ) prelim9>y     
eligibility 9 ! po/second>y education   
mat* sav+s acc\nt demon/ration grant    
program %all t]m9ate on ! expiration    
date describ$ 9 clause 7ii74 ,! eligible
 entity %all cease res]v+ mat*+ funds on
 behalf ( t /ud5t z describ$ 9 p>agraph 

7#a77;,d74 ,any rema9+ funds t ! /ud5t  
or ! /ud5t's family deposit$ 9 a        
po/second>y education mat* sav+s acc\nt 
%all be made available = )drawal 9      
accordance ) subp>agraph 7,a74  7ii7    
,expiration date ,! expiration date     
describ$ 9 ?is clause is-- 7,i7 ! date t
 is #h ye>s aft] ! date on :i* a        
p>ticipat+ eligible /ud5t fir/ enroll$ 9
 an eligible educational in/itution2 or 
7,,ii7 9 ! case ( a /ud5t ) prelim9>y   
eligibility1 or a p>ticipat+ eligible   
/ud5t :o does n enroll 9 an eligible    
educational in/itution1 ! date t is #d  
ye>s aft] ! date on :i* ! /ud5t fir/    
agrees to p>ticipate 9 ! po/second>y    
education mat* sav+s acc\nt demon/ration
 grant program4  7#d7 ,managem5t co/s   
,an eligible entity receiv+ a grant "u  
?is section may use n m ?an #e p]c5t (  
grant funds = managem5t co/s1 :i* may   
include nonadm9i/rative & adm9i/rative  
functions1 includ+ program managem5t1   
report+ requirem5ts1 recruitm5t &       
enrollm5t ( individuals1 & monitor+4    

7f7 ,data %>+ ,an eligible entity       
receiv+ a grant "u ?is section %all ent]
 into a data %>+ agreem5t ) eligible    
educational in/itutions 9 ord] to       
ex*ange data necess>y to c>ry out !     
activities describ$ 9 ?is section4 ,su* 
data %>+ %all be c>ri$ out 9 a mann] t  
complies ) ! requirem5ts ( section #ddd 
( ! ,g5]al ,education ,provisions ,act  
7commonly kn[n z ! ,family ,educational 
,rights & ,privacy ,act ( #aigd7 7#bj   
,u4,s4,c4 #abcb;g74  7g7 ,annual        
progress reports ,ea* eligible entity   
receiv+ a grant "u ?is section %all     
prep>e & submit to ! ,secret>y an annual
 progress report conta9+ ! foll[+       
in=mation1 9 ! aggregate & 9 a mann] t  
protects p]sonally id5tifiable in=mation
 9 accordance ) ,f$]al privacy laws3    
7#a7 ,! numb] & *>act]i/ics ( p>ticipat+
 /ud5ts mak+ a deposit into a           
po/second>y education mat* sav+s acc\nt 
support$ "u ?is section4  7#b7 ,data on 
program goals & a*ievem5ts includ+      
enrollm5t rates1 fir/-ye> ret5tion      

rates1 program completion1 av]age ,f$]al
 /ud5t loan debt1 & %>e ( p>ticipat+    
eligible /ud5ts borr[+ ,f$]al /ud5t     
loans4  7#c7 ,! am\nt t ! eligible      
entity has res]v$ 9 accordance )        
subsection 7e77#a77;,d74  7#d7 ,!       
aggregate am\nts deposit$ 9 po/second>y 
education mat* sav+s acc\nts by         
p>ticipat+ /ud5ts & _! families4  7#e7  
,:at s]vice configurations ( ! eligible 
entity 7su* z configurations relat+ to  
pe] support1 /ructur$ plann+ ex]cises1  
m5tor+1 & case managem5t7 increas$ !    
rate & consi/5cy ( p>ticipation 9 !     
demon/ration project & h[ su*           
configurations v>i$ among diff]5t       
populations or communities4  7#f7 ,su*  
o!r in=mation z ! ,secret>y may require 
to evaluate ! demon/ration project4  7h7
 ,report to congress ,n lat] ?an #a ye> 
aft] ! e/abli%m5t ( ! demon/ration      
project "u ?is section1 ! ,secret>y %all
 prep>e & submit to ,congress a report  
conta9+ ! foll[+ in=mation3 7#a7 ,!     
effects ( inc5tives & organizational or 

in/itutional support on po/second>y     
ret5tion 9 ! demon/ration project4  7#b7
 ,! sav+s rates ( individuals 9 !       
demon/ration project1 9 ! aggregate &   
disaggregat$ by demographic *>act]i/ics 
includ+ g5d]1 age1 family size1 race or 
e?nic backgr\nd1 & income4  7#c7 ,!     
effects ( po/second>y education mat*    
sav+s acc\nts on sav+s rates &          
po/second>y education ret5tion &        
completion1 & h[ su* effects v>y among  
diff]5t populations or communities4     
7#d7 ,! lessons to be le>n$ f !         
demon/ration projects conduct$ "u ?is   
section & :e!r a p]man5t po/second>y    
education sav+s grant program %\ld be   
e/abli%$4  7#e7 ,! *>act]i/ics (        
po/second>y education mat* sav+s acc\nts
 7su* z ?re%old am\nts & mat* rates7    
requir$ to /imulate p>ticipation 9 !    
demon/ration project1 & h[ su*          
*>act]i/ics v>y among diff]5t           
populations or communities4  7#f7 ,su*  
o!r factors z may be prescrib$ by !     
,secret>y4  7i7 ,te*nical assi/ance ,!  

,secret>y may res]ve n m ?an #aj p]c5t (
 ! am\nts appropriat$ "u section #f to  
provide te*nical assi/ance to eligible  
entities receiv+ grants "u ?is section4 
#f4 ,au?orization ( appropriations ,!re 
are au?oriz$ to be appropriat$ to c>ry  
out ?is ,act #ajj1jjj1jjj = fiscal ye>  
#bjbd & ea* ( ! succe$+ #d ye>s4