Empowering Students Through Enhanced Financial Counseling Act

Floor Speech

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Ms. STEFANIK. Mr. Chairman, I thank Chairwoman Foxx.

Today, young Americans are burdened with more than $1.4 trillion in student debt. As the cost of college tuition continues to rise, we know that students who do not complete their degrees and graduate bear the heaviest burden when paying back loans.

This is why we must ensure that borrowing is done wisely and that we provide students with information so they don't feel compelled to drop out because of a change in finances.

Financial literacy is the foundation needed for students to make informed decisions, yet over 40 percent of students carrying high debt loads cannot remember ever receiving financial counseling.

Many students work very hard to line up savings, scholarships, grants, and loans to pay for their education only to have something change in their personal life. This could be the death or an illness of a family member, the loss of a parent's or student's job, an investment that didn't work out, or any number of situations resulting in a significant change to the student's financial circumstances.

When students are faced with these hardships, some rush into a loan that may not be in their best interest, and some may even decide to drop out of school. We should not accept either of those outcomes, especially when our Nation's schools are equipped with the dedicated support of financial aid officers. These individuals are able to help guide a student through the many complexities of financing higher education and are also ready and willing to guide students through unexpected financial turbulence.

We know that students who do receive adequate financial guidance are positioned to have much stronger financial health than those who do not. One challenge to this goal of financial literacy is ensuring students know who to go to when finances become an issue. This problem is particularly harmful to first-generation college students who may not have any family members or friends who can help advise on this type of situation or may not know where to look for additional financial guidance.

My amendment adds to the important work of this underlying bill by ensuring all students receive an explanation of how they can seek additional assistance from their financial aid office should they face a change in personal financial circumstances.

Since students will not be required to take out the maximum loan that they are eligible for, my amendment also clarifies that the loan the borrower receives is the amount the borrower wants to take out.

Mr. Chairman, I ask my colleagues to support this commonsense amendment and the underlying bill, and I reserve the balance of my time.

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Ms. STEFANIK. Mr. Chairman, I thank my colleague and friend, the gentlewoman from Oregon, for her support.

As she mentioned, this is a commonsense amendment. It particularly helps first-generation college students access the financial counseling they need. This improves the bill.

Mr. Chairman, I yield back the balance of my time.

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