Summary of Amendments Submitted to the Rules Committee for H.R. 4984 - Empowering Students Through Enhanced Financial Counseling Act

Summaries Derived from Information Provided by Sponsors

Listed in Alphabetical Order

July 22, 2014 4:52 PM

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Cohen (TN)


Adds a requirement that students be told how federal and private student loans are treated in bankruptcy.

Hahn (CA)


Provides student loan borrowers with the national average cohort default rate in addition to the institution’s cohort default rate and the categorical national cohort default rate.

Kilmer (WA), Hinojosa (TX), Bachus (AL), Petri (WI), Tsongas (MA)


Ensures each individual is aware of financial management resources provided by the Treasury Department's Financial Literacy and Education Commission.

Kline (MN), Miller, George (CA)


MANAGER’S AMENDMENT Clarifies the information provided to first-time borrowers; a clarification that borrowers must accept their loans annually after the completion of the other counseling requirements; a requirement for the secretary of education, acting through the director of the Institute of Education Sciences, to conduct a longitudinal study of the impact and effectiveness of the student loan counseling required under this act; and other minor technical edits.

Murphy, Patrick (FL)


LATE Requires the inclusion of recent average income and employment data for different levels of educational attainment.

Pascrell (NJ), Runyan (NJ)


LATE Requires that information be provided to borrowers of a loan made under part D to inform the borrower that the borrower’s estate or any cosigner of a private loan may be obligated to repay the full amount of the loan in the event of the death or disability of the borrower.

Peters (MI)


REVISED Requires that student borrowers receive an explanation of the impact of a delinquency or default on a loan to their credit score, including the borrower’s future ability to find employment or purchase a home or a car.

Peters (MI)


WITHDRAWN Requires that student borrowers receive a ranking of their outstanding loans by interest rate and information on the potential benefits of repaying the loan with the highest interest rate first.

Sanchez, Loretta (CA)


Includes an explanation that if a student decides to transfer to another institution, not all of the student’s credits may be acceptable towards meeting specific degree or program requirements at such institution, therefore, eligibility for Federal Pell Grants will not reset due to the maximum number of semesters or equivalent.

Velázquez (NY)


LATE Counseling for limited English proficiency borrowers.

Waters (CA)


Requires for-profit or proprietary higher education institutions to disclose to students the consequences of failing to repay short-term private loans they may offer to cover remaining tuition balances after applying federal aid.

Waters (CA)


REVISED Requires additional explanation during annual interactive counseling that federal aid may not cover all attendance costs and that students are under no obligation to accept private loans from the institution or any other lender.