Washington, DC - Senator Daniel K. Akaka (D-HI) today reintroduced the College LIFE Act aimed at addressing the issue of economic and financial literacy on college campuses.

"I am gravely concerned, both as a member of the U.S. Senate and particularly as a grandparent and great-grandparent, that our young people are entering college without proper direction or good skills for money management or economic decision making," said Senator Akaka.

The College LIFE Act proposes grant programs that would provide resources to (1) encourage innovative methods used in or out of the classroom to increase college students' financial literacy, (2) facilitate the sharing of best practices about or creation of college-level courses in personal finance, (3) assist integration of personal finance and economics into basic educational subjects, and (4) train teachers and high school counselors toward increasing financial and economic literacy in grades K-12.

The bill also proposes a pilot program for five higher education institutions to encourage students to take a personal finance course and participate in preventive annual credit counseling, working in conjunction with state or local public, private, and nonprofit entities selected by the local education agency or the school, and measuring the effectiveness of efforts in any behavioral changes that may result.

"As we work on increasing access to higher education, we must give students access to tools needed to make sound economic and financial decisions once they are on campus," Senator Akaka said. "Without this basic understanding college students are not effectively evaluating credit alternatives, managing their debt, and preparing for long-term financial goals."

The College LIFE Act emphasizes the importance of personal finance and economic education and counseling by authorizing these activities as allowable uses in existing Higher Education Act programs, such as TRIO, GEAR UP, and Title III and Title V Serving Institutions. These are programs that have been successful in expanding higher education access to populations with unique needs and, therefore, are ideal avenues through which we can further the important components of financial and economic literacy, such as wise budgeting, saving, debt management, tax preparation, and avoiding predatory or abusive practices.