Earn to Learn Act

The "Earn to Learn Act" addresses the escalating costs of higher education and the substantial student loan debt burden, particularly for low-income students. Its primary purpose is to establish an innovative matched savings program that complements existing financial aid options. This initiative aims to help students achieve their educational goals, develop healthy financial habits, and significantly minimize their reliance on student loans. The Act authorizes the Secretary of Education to create a competitive demonstration grant program, awarding funds to eligible entities such as states and nonprofit organizations. These grantees will implement postsecondary education match savings accounts for low-income students. Eligibility for students requires admission to an educational institution, completion of prerequisite personal finance training, and a commitment to contribute personal savings. A critical provision of the bill ensures that participation in this program, including both student deposits and federal matching funds, will not affect a student's eligibility for Federal Pell Grants or other federal student aid . Grantees must secure a 1:1 non-Federal matching fund commitment for the federal grant itself. For individual student participants, after an initial $100 deposit, the eligible entity will provide an 8:1 match for each subsequent dollar saved by the student or their family. To support program implementation and ensure consistency, the Secretary will develop and provide grantees with essential tools, including a Financial Capability Training Platform , a Success Coaching Model , and a Reporting Dashboard . Grant funds are specifically allocated for selecting eligible students, delivering financial literacy education, establishing savings accounts, and reserving matching funds. The bill also mandates data sharing agreements with educational institutions and requires annual progress reports from grantees to ensure accountability and evaluate program effectiveness. The Secretary is required to submit a comprehensive report to Congress within one year, evaluating the program's impact on student savings rates, postsecondary retention, and completion, and assessing the potential for establishing a permanent program. This evaluation will inform future policy decisions regarding financial aid innovation. To fund this initiative, the Act authorizes $100,000,000 for fiscal year 2027 and each of the succeeding four years .