Press Releases

WASHINGTON – Congressman French Hill issued the following statement after voting in favor of the Empowering Students Through Enhanced Financial Counseling Act, which passed the House by 406-4.

“As a member of Congress and a former banker, I’ve heard from many students and parents telling me their concern of skyrocketing costs of higher education and the misuse of student loans. In my view, the lack of financial education connected to the use of student loans is a key challenge. By requiring borrowers to take annual financial counseling, we are promoting financial literacy for our families and students and ensuring they understand more fully the costs of taking student loans and the impact they can have on their future.”

Background

The Empowering Students Through Enhanced Financial Counseling Act, H.R. 1635, does the following:

• Ensures borrowers, both students and parents, who participate in the federal loan program receive interactive counseling each year that reflects their individual borrowing situation. 

• Provides awareness about the financial obligations students and parents are accumulating by requiring borrowers to consent each year before receiving federal student loans. 

• Informs low-income students about the terms and conditions of the Pell Grant program through annual counseling that will be provided to all grant recipients. 

• Directs the secretary of education to maintain and disseminate a consumer-tested, online counseling tool institutions can use to provide annual loan counseling, exit counseling, and annual Pell Grant counseling.

Delivers students the tools and information they need to borrow and repay their student loans in a responsible way.