[Congressional Record Volume 162, Number 114 (Thursday, July 14, 2016)]
[Extensions of Remarks]
[Page E1115]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     EMPOWERING STUDENTS THROUGH ENHANCED FINANCIAL COUNSELING ACT

                                 ______
                                 

                               speech of

                         HON. SUZANNE BONAMICI

                               of oregon

                    in the house of representatives

                         Monday, July 11, 2016

  Ms. BONAMICI. Mr. Speaker, I rise today to support H.R. 3179, the 
Empowering Students Through Enhanced Financial Counseling Act. I 
appreciate the opportunity to work with Congressman Guthrie on this 
important legislation, and I commend Chairman Kline and Ranking Member 
Scott for their leadership, without which this bill would not be on the 
path to becoming law.
  The Empowering Students Through Enhanced Financial Counseling Act 
will provide college students with clearer information about their 
rights and obligations as student loan borrowers. The current process 
of borrowing student loans and preparing for repayment can be 
confusing. In fact, I have heard from many borrowers who did not 
understand the terms of their loans or the tools and programs available 
to help them manage their debt. The lack of information on the benefits 
and consequences of taking on student debt is especially troubling 
during a time when more students are turning to loans to cover the 
costs of higher education--and they are borrowing larger amounts, on 
average.
  This legislation will put in place several commonsense requirements 
to help student loan borrowers make informed decisions about borrowing 
and plan for the future. The bill will require annual loan counseling. 
Each year students can track how much they have borrowed, how much they 
are projected to borrow, how much interest has accrued and will 
continue to accrue, and what they are likely to be asked to pay each 
month upon entering repayment. In addition to regularly monitoring 
their debt, students will be reminded that they can pay off interest, 
if they are able to, before it capitalizes, that they are not obligated 
to borrow the full amount for which they are eligible, and that Federal 
student loans tend to provide more benefits and safeguards than private 
education loans.
  The Empowering Students Through Enhanced Financial Counseling Act 
provides comprehensive information to Pell Grant recipients so that 
they understand the terms of the grants and the circumstances in which 
they may have to repay the grants. The bill also provides improved 
information to parents who borrow PLUS Loans to cover the costs of a 
child's education. By providing more frequent information to loan 
borrowers and extending counseling to parents and Pell Grant 
recipients, this bill will help more people take steps to reduce 
borrowing and prepare to repay their student loans successfully.
  Furthermore, this legislation requires a longitudinal study of the 
effects of loan counseling. The study will examine whether better 
counseling contributes to a reduction in borrowing, a decrease in 
delinquencies and defaults, and an increase in program completion. 
Importantly, the effects of loan counseling will be disaggregated by 
race, gender, and income--allowing policymakers to determine whether 
enhanced counseling is benefiting all loan borrowers.
  Once again, I would like to thank Congressman Guthrie, Chairman 
Kline, and Ranking Member Scott for their partnership on this 
legislation and their commitment to making college more affordable and 
accessible. Congress has a lot of work to do, but the Empowering 
Students Through Enhanced Financial Counseling Act is an important step 
that will help more students navigate the student loan market and build 
successful futures.

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