Financial literacy bill would add portal to Education Department website

Financial literacy bill would add portal to Education Department website
The Financial Fitness Act would provide resources for student borrowers on 'core personal finance concepts such as budgeting, saving and investing.'
NOV 01, 2021

Congress would create a comprehensive financial education site for student borrowers under a House bill submitted Friday by Rep. Teresa Leger Fernández, D-N.M.

The Financial Fitness Act, which is co-sponsored by Rep. Victoria Spartz, R-Ind., would provide resources on “core personal finance concepts such as budgeting, saving and investing” in addition to education on “managing student loan repayment including benefits, policies and forgiveness,” an announcement from Leger Fernández’s office stated.

The need for the program is shown by the immense debt and budgeting needs of low-income and minority students and the fact that personal finance is not “a core part of a student's basic education,” the representative said in the announcement.

Financial education resources would benefit students before they opt to take on loans for higher education, Spartz said in a statement.

“Nearly 43 million people owe an average of $36,406 in federal student loans, and student loan debt in the United States totals $1.73 trillion, growing six times faster than the nation’s economy,” a preamble to the bill read. “Student debt has significant racial equity implications. Almost half of Black college students are using federal student loans to cover educational costs, and Black college graduates are still substantially more likely than white college graduates to default on their debt within four years of graduation.”

In addition, the need for more financial literacy is evident given the higher risk of loan default among veterans, parents, and low-income and first-generation college students, according to the bill.

Leveraging online trading to boost financia literacy

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.