Empowering Students Through Enhanced Financial Counseling Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. ESTES of Kansas. Mr. Chairman, I rise in support of H.R. 1635, the Empowering Students Through Enhanced Financial Counseling Act.

As a member of the Committee on Education and the Workforce and a father of three, I value the importance of higher education and making sure everyone has a way to pay for it.

For the last decade, a generation of students have graduated college with massive debt and little prospects for a job.

Thankfully, today, unemployment is at a historic low, and for the first time ever, we have more job openings than job seekers. Our economy is finally on the move, but the burden of student debt remains. In fact, Americans currently have more than $1.4 trillion in student debt. Unfortunately, much of this aid was received without adequate information about how to make the best financial choices.

Currently, individuals receiving student financial loans must complete a one-time entrance counseling session, but this counseling can occur after the students have already signed up to take out the loan and is not required for those who receive Pell grants.

Before completing classes, students must complete exit counseling. However, this information is very general, rather than being specific to the individual's specific situation.

These generic counseling sessions have failed our country and not helped students to put themselves on financially sound footing. That is why I am proud to support H.R. 1635.

This bill ensures borrowers who participate in a Federal loan program or receive a Pell grant get targeted counseling every year and not just once they enter and exit the program.

It also provides awareness about financial obligation borrowers are accumulating by requiring the borrower's consent each year before receiving Federal student loans.

These steps give students the tools they need to be financially responsible, while having the opportunities to get the education they deserve.

Mr. Chair, I want to thank my colleagues on the Committee on Education and the Workforce for recognizing the importance of financial literacy and bringing forth this legislation that will help families in Kansas and throughout the country.

Mr. Chair, I urge my colleagues to support this bill.

BREAK IN TRANSCRIPT

Source