The House plans to vote next week on legislation, the Empowering Students Through Enhanced Financial Counseling Act, H.R. 1635, which would provide annual financial counseling for student loan borrowers.
The bill, reintroduced by Reps. Brett Guthrie, R-Ky., chairman of the Higher Education and Workforce Development Subcommittee, and Suzanne Bonamici, D-Ore., amends, among other measures, the loan counseling requirements under the Higher Education Act of 1965.
In reintroducing the legislation, Bonamici said that for students receiving federal loans, financial counseling is currently only required at the beginning and end of their academic careers.
“Part of fixing the problem is ensuring that student borrowers grasp the extent of their financial obligations,” she said. “By requiring students to complete annual financial counseling when they accept federal student aid, we can help them better understand which financial options to draw from first and the implications of their future debt load and repayment scenarios.”