PRIA, Government Policy, Made Personal

Summary

The Secretary of the Treasury must work with the Secretary of Education, the Secretary of Agriculture (for land‑grant schools), and other federal financial‑education agencies to improve students’ money skills at eligible colleges and universities. They must create programs and courses that teach students about the short‑ and long‑term costs of college loans and other debt, how loan repayment works, and borrowers’ rights. They also must help students understand and use the financial aid process. They must find and study existing student financial‑education programs, especially ones that help with financial aid and that partner with nonprofits, schools, governments, or student groups. They must measure which programs actually change student behavior, promote the most effective ones, and encourage schools to adopt them. By 2 years after August 14, 2008, the Financial Literacy and Education Commission must report on progress to the Senate Committees on Banking, Housing, and Urban Affairs and on Health, Education, Labor, and Pensions, and to the House Committees on Financial Services and on Education and Labor. The Treasury Secretary must testify before the Senate Banking Committee and the House Financial Services Committee if asked.

Title 20, §9709

Education, Source: USLM XML via OLRC

(a)In general

The Secretary of the Treasury (in this section referred to as the “Secretary”), in coordination with the Secretary of Education, the Secretary of Agriculture (with respect to land-grant colleges and universities), and any other appropriate agency that is a member of the Financial Literacy and Education Commission established under the Financial Literacy and Education Improvement Act (20 U.S.C. 9701 et seq.), shall seek to enhance financial literacy among students at covered educational institutions through—

(1)the development of initiatives, programs, and curricula that improve student awareness of the short- and long-term costs associated with education loans and other debt assumed while in college, their repayment obligations, and their rights as borrowers; and

(2)assisting such students in navigating the financial aid process.

(b)Duties

For purposes of this section, the Secretary, working in conjunction with the Secretary of Education, the Secretary of Agriculture, and the Financial Literacy and Education Commission, shall—

(1)identify programs that promote or enhance financial literacy for college students, with specific emphasis on programs that impart the knowledge and ability for students to best navigate the financial aid process, including those that involve partnerships between nonprofit organizations, colleges and universities, State and local governments, and student organizations;

(2)evaluate the effectiveness of such programs in terms of measured results, including positive behavioral change among college students;

(3)promote the programs identified as being the most effective; and

(4)encourage covered educational institutions to implement financial education programs for their students, including those that have the highest evaluations.

(c)Report

(1)In general

Not later than 2 years after August 14, 2008, the Financial Literacy and Education Commission shall submit a report to the Committee on Banking, Housing, and Urban Affairs and the Committee on Health Education, Labor, and Pensions of the Senate and the Committee on Financial Services and the Committee on Education and Labor of the House of Representatives on the state of financial education among students at covered educational institutions.

(2)Content

The report required by this subsection shall include a description of progress made in enhancing financial education with respect to student understanding of financial aid, including the programs and evaluations required by this section.

(3)Appearance before Congress

The Secretary shall, upon request, provide testimony before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives concerning the report required by this subsection.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Financial Literacy and Education Improvement Act, referred to in subsec. (a), is title V of Pub. L. 108–159, Dec. 4, 2003, 117 Stat. 2003, which is classified generally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 9701 of this title and Tables. Codification Section was enacted as part of the Higher Education Opportunity Act, and also as part of the Private Student Loan Transparency and Improvement Act of 2008, and not as part of the Financial Literacy and Education Improvement Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Change of Name

Committee on Education and Labor of House of Representatives changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023. Definitions Pub. L. 110–315, title X, § 1041, Aug. 14, 2008, 122 Stat. 3489, provided that: “As used in this subtitle [subtitle D (§§ 1041, 1042) of title X of Pub. L. 110–315, enacting this section]— “(1) the terms ‘covered educational institution’, ‘private educational lender’, and ‘private education loan’ have the same meanings as in section 140 of the Truth in Lending Act [15 U.S.C. 1650], as added by this Act; “(2) the term ‘historically Black colleges and universities’ means a ‘part B institution’, within the meaning of section 322 of the Higher Education Act of 1965 (20 U.S.C. 1061))[sic]; and “(3) the term ‘land-grant colleges and universities’ has the same meaning as in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103).”

§9709 Coordinated Education Efforts