[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4222 Introduced in House (IH)]
<DOC>
114th CONGRESS
1st Session
H. R. 4222
To direct the Secretary of Education to carry out a pilot program under
which higher education savings accounts are established for the benefit
of eligible secondary school students.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2015
Mr. Carney introduced the following bill; which was referred to the
Committee on Education and the Workforce, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To direct the Secretary of Education to carry out a pilot program under
which higher education savings accounts are established for the benefit
of eligible secondary school students.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Higher Education Savings Accounts
Act of 2015''.
SEC. 2. HIGHER EDUCATION PLEDGE ACCOUNTS PILOT PROGRAM.
(a) In General.--The Secretary shall carry out a pilot program
under which savings accounts (to be known as ``higher education pledge
accounts'') are established for the benefit of eligible students in
accordance with this section.
(b) Eligibility and Selection of Participants.--
(1) Eligible students.--To be eligible to participate in
the pilot program, a student must be--
(A) enrolled in the 9th or 10th grade at a
secondary school; and
(B) eligible to receive free or reduced price
lunches under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.).
(2) Selection of eligible students.--The Secretary shall
select eligible students for participation in the pilot program
based on such criteria as the Secretary determines to be
appropriate.
(c) Deposits.--
(1) Initial deposit.--
(A) In general.--The Secretary shall deposit an
initial amount into each higher education pledge
account.
(B) Amount of initial deposit.--The amount of the
initial deposit described in subparagraph (A) shall be
equal to the amount of the maximum Federal Pell Grant
under section 401(b) of the Higher Education Act of
1965, as specified in the last enacted appropriation
Act applicable to that award year.
(2) Subsequent deposits.--
(A) In general.--The Secretary may make additional
deposits into a higher education pledge account based
on an evaluation of the academic progress of the
student in accordance with subsection (g).
(B) Amount of subsequent deposits.--The amount of
an additional deposit made under subparagraph (A) for
an award year beginning after the date of the initial
deposit under paragraph (1) shall be not less than the
amount of the maximum Federal Pell Grant under section
401(b) of the Higher Education Act of 1965, as
specified in the last enacted appropriation Act
applicable to that award year.
(d) Distributions.--A student may use funds from the student's
higher education pledge account only to pay the cost of attendance at a
qualified institution.
(e) Tax Treatment of Accounts.--
(1) In general.--A higher education pledge account is
exempt from taxation under subtitle A of the Internal Revenue
Code of 1986.
(2) Contributions and distributions.--For purposes of such
subtitle--
(A) any contribution to a higher education pledge
account by the Secretary under this Act shall not be
includible in gross income; and
(B) any distribution from a higher education pledge
account which is permitted under this Act shall not be
includible in the gross income of the individual for
whose benefit such account is maintained.
(f) Offset of Federal Pell Grant Amounts.--The amount of any
Federal Pell Grant awarded to a student attending a qualified
institution shall be reduced by the amount in such student's higher
education pledge account.
(g) Monitoring of Academic Progress.--The Secretary shall monitor
the academic progress of each student for whose benefit a higher
education pledge account is maintained.
(h) Financial Counseling.--The Secretary shall ensure that each
student for whose benefit a higher education pledge account is
maintained receives not less than 12 hours of financial counseling with
respect to--
(1) the rules pertaining to deposits, distributions, and
the tax treatment of funds in the higher education pledge
account; and
(2) sources of Federal financial assistance for higher
education.
SEC. 3. DEFINITIONS.
In this Act:
(1) Cost of attendance.--The term ``cost of attendance''
has the meaning given the term in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll).
(2) Federal financial assistance.--The term ``Federal
financial assistance'' means any grant, loan, or other
financial assistance that may be provided to an individual
student under the Higher Education Act of 1965.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102(a) of the Higher Education Act of 1965 (20
U.S.C. 1002(a)) except that such term does not include
proprietary institutions of higher education (as defined in
section 102(b) of such Act (20 U.S.C. 1002(b))).
(4) Qualified institution.--The term ``qualified
institution'' means an institution of higher education that--
(A) has in effect a program participation agreement
under section 487 of the Higher Education Act of 1965
(20 U.S.C. 1094); and
(B) is eligible to participate in programs under
title IV of such Act (20 U.S.C. 1070 et seq.).
(5) Secondary school.--The term ``secondary school'' has
the meaning given the term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Education.
<all>