Financial Literacy College Education Act

“(j) Best practices for teaching financial literacy

“(1) In general—After soliciting public comments and consulting with and receiving input from relevant parties, including a diverse set of institutions of higher education and other interested stakeholders, including students, parents, and consumer advocacy groups, the Commission shall, by not later than 1 year after the date of enactment of this subsection, establish best practices for institutions of higher education regarding methods to—

“(A) teach financial literacy skills; and

“(B) provide useful and necessary information to assist students at institutions of higher education when making financial decisions related to student borrowing.

“(2) Best practices—The best practices described in paragraph (1) shall include the following:

“(A) Methods to ensure that each student has a clear sense of the student’s total borrowing obligations, including monthly payments, and repayment options.

“(B) The most effective ways to engage students in financial literacy education, including frequency and timing of communication with students.

“(C) Information on how to target different student populations, including part-time students, first-time students, and other nontraditional students.

“(D) Ways to clearly communicate the importance of graduating on a student’s ability to repay student loans.

“(3) Maintenance of best practices—The Commission shall maintain and periodically update the best practices information required under this subsection at least every 2 years and make the best practices available to the public.

“(4) Rule of construction—Nothing in this subsection shall be construed to require an institution of higher education to adopt the best practices required under this subsection.”