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H.R. 1193House115th Congress (2017-2019)In Committee

Financial Literacy to Financial Freedom Act

Sponsored by David A. TrottRep. David A. Trott (R-MI)
Introduced February 16, 2017

AI-Generated Summary

Updated April 15, 2026 at 12:52 PM UTC

The Financial Literacy to Financial Freedom Act amends the Higher Education Act to let colleges and universities require extra loan counseling for students taking federal student loans. It also makes sure borrowers formally accept their loans after receiving this counseling before any money is disbursed. The changes affect higher‑education institutions and students who receive federal Direct loans (except consolidation and PLUS loans).

Key Provisions

  • Allows eligible institutions to require additional loan or financial literacy counseling for borrowers before a loan disbursement, beyond the standard entrance counseling.
  • Requires borrowers to formally accept the loan—by signing the master promissory note, a written statement, or an electronic version—after receiving the counseling and before the first disbursement for the award year.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Education and the Workforce.

Education and Workforce Committee

February 16, 2017

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HouseIntro Referral

Introduced in House

February 16, 2017

HouseIntro Referral

Referred to the House Committee on Education and the Workforce.

Education and Workforce Committee

February 16, 2017

Bill Text

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Introduced in HouseIssued February 16, 2017

I

115th CONGRESS

1st Session

H. R. 1193

IN THE HOUSE OF REPRESENTATIVES

February 16, 2017

Mr. Trott introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To amend the Higher Education Act of 1965 to authorize institutions of higher education to provide additional loan counseling, and for other purposes.

1.

Short title

This Act may be cited as the Financial Literacy to Financial Freedom Act.

2.

Entrance counseling for borrowers

Section 485(l) of the Higher Education Act of 1965 (20 U.S.C. 1092(l)) is amended by adding at the end the following:

(3)

Additional counseling

In addition to the entrance counseling under paragraph (1), an eligible institution may require any borrower, at or prior to the time of a disbursement to the borrower of a loan made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student), to receive the information described in paragraph (2) with respect to such loan, or any other financial counseling, including financial literacy counseling.

(4)

Annual loan acceptance

Prior to making the first disbursement of a loan made under part D (other than a Federal Direct Consolidation Loan) to a borrower for an award year, an eligible institution, shall ensure that after receiving the applicable counseling under paragraph (2) or (3), the borrower accepts the loan for such award year by—

(A)

signing the master promissory note for the loan;

(B)

signing and returning to the institution a separate written statement that affirmatively states that the borrower accepts the loan; or

(C)

electronically signing an electronic version of the statement described in subparagraph (B).

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