| 1 | 1 | | I |
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| 2 | 2 | | 118THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 1198 |
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| 5 | 5 | | To require a standard financial aid offer form, and for other purposes. |
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| 6 | 6 | | IN THE HOUSE OF REPRESENTATIVES |
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| 7 | 7 | | FEBRUARY27, 2023 |
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| 8 | 8 | | Mrs. K |
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| 9 | 9 | | IMof California (for herself, Mr. KRISHNAMOORTHI, and Mr. |
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| 10 | 10 | | G |
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| 11 | 11 | | OTTHEIMER) introduced the following bill; which was referred to the |
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| 12 | 12 | | Committee on Education and the Workforce |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To require a standard financial aid offer form, and for other |
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| 15 | 15 | | purposes. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
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| 19 | 19 | | This Act may be cited as the ‘‘Understanding the 4 |
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| 20 | 20 | | True Cost of College Act of 2023’’. 5 |
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| 21 | 21 | | SEC. 2. INSTITUTION FINANCIAL AID OFFER FORM. 6 |
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| 22 | 22 | | Section 484 of the Higher Education Opportunity 7 |
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| 23 | 23 | | Act (20 U.S.C. 1092 note) is amended to read as follows: 8 |
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| 25 | 25 | | kjohnson on DSK79L0C42PROD with BILLS 2 |
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| 26 | 26 | | •HR 1198 IH |
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| 27 | 27 | | ‘‘SEC. 484. INSTITUTION FINANCIAL AID OFFER FORM. 1 |
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| 28 | 28 | | ‘‘(a) S |
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| 29 | 29 | | TANDARDFORMAT ANDTERMINOLOGY.—The 2 |
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| 30 | 30 | | Secretary of Education, in consultation with the heads of 3 |
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| 31 | 31 | | relevant Federal agencies, shall develop standard termi-4 |
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| 32 | 32 | | nology and a standard format for financial aid offer forms 5 |
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| 33 | 33 | | based on recommendations from representatives of stu-6 |
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| 34 | 34 | | dents, veterans, servicemembers, students’ families, insti-7 |
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| 35 | 35 | | tutions of higher education (including community colleges, 8 |
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| 36 | 36 | | for-profit institutions, four-year public institutions, and 9 |
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| 37 | 37 | | four-year private nonprofit institutions), financial aid ex-10 |
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| 38 | 38 | | perts, secondary school and postsecondary counselors, 11 |
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| 39 | 39 | | nonprofit organizations, and consumer groups. 12 |
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| 40 | 40 | | ‘‘(b) K |
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| 41 | 41 | | EYREQUIREDCONTENTS FOR OFFER 13 |
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| 42 | 42 | | F |
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| 43 | 43 | | ORM.—The standard format developed under subsection 14 |
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| 44 | 44 | | (a) shall include, in a consumer-friendly manner that is 15 |
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| 45 | 45 | | simple and understandable, a form titled ‘Financial Aid 16 |
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| 46 | 46 | | Offer’, which shall include the following items, with costs 17 |
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| 47 | 47 | | listed first followed by grants and scholarships, clearly 18 |
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| 48 | 48 | | separated from each other with separate headings: 19 |
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| 49 | 49 | | ‘‘(1) C |
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| 50 | 50 | | OST INFORMATION.— 20 |
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| 51 | 51 | | ‘‘(A) Information on the student’s esti-21 |
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| 52 | 52 | | mated cost of attendance, including the fol-22 |
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| 53 | 53 | | lowing: 23 |
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| 54 | 54 | | ‘‘(i) Total direct costs, including the 24 |
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| 55 | 55 | | component totals each for— 25 |
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| 57 | 57 | | kjohnson on DSK79L0C42PROD with BILLS 3 |
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| 58 | 58 | | •HR 1198 IH |
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| 59 | 59 | | ‘‘(I) tuition and fees, as deter-1 |
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| 60 | 60 | | mined under section 472 of the High-2 |
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| 61 | 61 | | er Education Act of 1965 (20 U.S.C. 3 |
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| 62 | 62 | | 1087ll); and 4 |
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| 63 | 63 | | ‘‘(II) college-sponsored housing 5 |
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| 64 | 64 | | and food costs (as determined based 6 |
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| 65 | 65 | | on the costs for room and board 7 |
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| 66 | 66 | | under such section). 8 |
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| 67 | 67 | | ‘‘(ii) Total estimated other expenses, 9 |
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| 68 | 68 | | including— 10 |
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| 69 | 69 | | ‘‘(I) the component totals each 11 |
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| 70 | 70 | | for housing and food costs for stu-12 |
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| 71 | 71 | | dents who reside off-campus; and 13 |
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| 72 | 72 | | ‘‘(II) for all students, books, sup-14 |
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| 73 | 73 | | plies, transportation, and miscella-15 |
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| 74 | 74 | | neous personal expenses (which may 16 |
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| 75 | 75 | | include costs of health insurance and 17 |
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| 76 | 76 | | dependent care), as determined under 18 |
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| 77 | 77 | | section 472 of the Higher Education 19 |
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| 78 | 78 | | Act of 1965 (20 U.S.C. 1087ll). 20 |
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| 79 | 79 | | ‘‘(B) An indication of the academic period 21 |
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| 80 | 80 | | covered by the financial aid offer, and an expla-22 |
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| 81 | 81 | | nation that the financial aid offered may 23 |
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| 82 | 82 | | change for academic periods not covered by the 24 |
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| 83 | 83 | | aid offer or by program. 25 |
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| 85 | 85 | | kjohnson on DSK79L0C42PROD with BILLS 4 |
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| 86 | 86 | | •HR 1198 IH |
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| 87 | 87 | | ‘‘(C) An indication of whether cost and aid 1 |
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| 88 | 88 | | estimates are based on full-time or part-time 2 |
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| 89 | 89 | | enrollment. 3 |
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| 90 | 90 | | ‘‘(D) An indication, as applicable, about 4 |
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| 91 | 91 | | whether the tuition and fees are estimated 5 |
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| 92 | 92 | | based on the previous year, or are set, for the 6 |
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| 93 | 93 | | academic period indicated in accordance with 7 |
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| 94 | 94 | | subparagraph (B). 8 |
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| 95 | 95 | | ‘‘(2) G |
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| 96 | 96 | | RANTS AND SCHOLARSHIPS .—The aggre-9 |
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| 97 | 97 | | gate amount of grants and scholarships by source 10 |
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| 98 | 98 | | that the student does not have to repay, such as 11 |
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| 99 | 99 | | grant aid offered under title IV of the Higher Edu-12 |
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| 100 | 100 | | cation Act of 1965 (20 U.S.C. 1070 et seq.) and 13 |
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| 101 | 101 | | grant aid offered through other Federal programs, 14 |
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| 102 | 102 | | grant aid offered by the institution, grant aid of-15 |
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| 103 | 103 | | fered by the State, and, if known, grant aid from an 16 |
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| 104 | 104 | | outside source to the student for such academic pe-17 |
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| 105 | 105 | | riod, including— 18 |
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| 106 | 106 | | ‘‘(A) a disclosure that the grants and 19 |
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| 107 | 107 | | scholarships do not have to be repaid; and 20 |
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| 108 | 108 | | ‘‘(B) if institutional aid is included— 21 |
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| 109 | 109 | | ‘‘(i) the conditions under which the 22 |
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| 110 | 110 | | student can expect to receive similar 23 |
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| 111 | 111 | | amounts of such financial aid for each aca-24 |
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| 113 | 113 | | kjohnson on DSK79L0C42PROD with BILLS 5 |
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| 114 | 114 | | •HR 1198 IH |
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| 115 | 115 | | demic period the student is enrolled at the 1 |
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| 116 | 116 | | institution; and 2 |
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| 117 | 117 | | ‘‘(ii) whether the institutional aid 3 |
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| 118 | 118 | | offer may change if grants or scholarships 4 |
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| 119 | 119 | | from outside sources are applied after the 5 |
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| 120 | 120 | | student receives the offer form, and, if ap-6 |
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| 121 | 121 | | plicable, how that aid will change. 7 |
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| 122 | 122 | | ‘‘(3) N |
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| 123 | 123 | | ET PRICE.— 8 |
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| 124 | 124 | | ‘‘(A) The net price that the student, or the 9 |
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| 125 | 125 | | student’s family on behalf of the student, is es-10 |
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| 126 | 126 | | timated to have to pay for the student to attend 11 |
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| 127 | 127 | | the institution for such academic period, equal 12 |
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| 128 | 128 | | to— 13 |
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| 129 | 129 | | ‘‘(i) the cost of attendance as de-14 |
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| 130 | 130 | | scribed in paragraph (1)(A) for the stu-15 |
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| 131 | 131 | | dent for the period indicated in paragraph 16 |
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| 132 | 132 | | (1)(B); minus 17 |
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| 133 | 133 | | ‘‘(ii) the amount of grant aid de-18 |
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| 134 | 134 | | scribed in paragraph (2) that is included in 19 |
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| 135 | 135 | | the financial aid offer form. 20 |
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| 136 | 136 | | ‘‘(B) A disclosure that the net price is an 21 |
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| 137 | 137 | | estimate of the total expenses for the year and 22 |
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| 138 | 138 | | not equivalent to the amount the student will 23 |
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| 139 | 139 | | owe directly to the institution. 24 |
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| 140 | 140 | | ‘‘(4) L |
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| 141 | 141 | | OANS.— 25 |
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| 143 | 143 | | kjohnson on DSK79L0C42PROD with BILLS 6 |
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| 144 | 144 | | •HR 1198 IH |
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| 145 | 145 | | ‘‘(A) Information on any loan under part 1 |
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| 146 | 146 | | D or part E of title IV of the Higher Education 2 |
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| 147 | 147 | | Act of 1965 (20 U.S.C. 1087a et seq.; 20 3 |
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| 148 | 148 | | U.S.C. 1087aa et seq.) (except a Federal Direct 4 |
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| 149 | 149 | | PLUS Loan under part D of that Act) that the 5 |
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| 150 | 150 | | institution recommends for the student for the 6 |
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| 151 | 151 | | academic period covered by the offer, which 7 |
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| 152 | 152 | | shall be made— 8 |
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| 153 | 153 | | ‘‘(i) with clear use of the word ‘loan’ 9 |
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| 154 | 154 | | to describe the recommended loan 10 |
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| 155 | 155 | | amounts; and 11 |
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| 156 | 156 | | ‘‘(ii) with clear labeling of subsidized 12 |
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| 157 | 157 | | and unsubsidized loans. 13 |
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| 158 | 158 | | ‘‘(B) A disclosure that such loans have to 14 |
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| 159 | 159 | | be repaid and a disclosure that the student can 15 |
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| 160 | 160 | | borrow a lesser or, if applicable, greater amount 16 |
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| 161 | 161 | | than the recommended loan amount. 17 |
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| 162 | 162 | | ‘‘(C) A disclosure that the interest rates 18 |
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| 163 | 163 | | and fees on such loans are set annually and af-19 |
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| 164 | 164 | | fect total cost over time, and a link to a De-20 |
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| 165 | 165 | | partment of Education website that includes 21 |
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| 166 | 166 | | current information on interest rates and fees. 22 |
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| 167 | 167 | | ‘‘(D) A link to the Department of Edu-23 |
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| 168 | 168 | | cation’s repayment calculator website for stu-24 |
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| 169 | 169 | | dents with instruction that this website contains 25 |
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| 171 | 171 | | kjohnson on DSK79L0C42PROD with BILLS 7 |
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| 172 | 172 | | •HR 1198 IH |
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| 173 | 173 | | customizable estimates of expected repayment 1 |
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| 174 | 174 | | costs under different loan repayment plans. 2 |
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| 175 | 175 | | ‘‘(5) P |
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| 176 | 176 | | ROCESS FOR ACCEPTING OR DECLINING 3 |
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| 177 | 177 | | AID AND NEXT STEPS.— 4 |
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| 178 | 178 | | ‘‘(A) The deadlines and a summary of the 5 |
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| 179 | 179 | | process (including the next steps) for— 6 |
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| 180 | 180 | | ‘‘(i) accepting the financial aid offered 7 |
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| 181 | 181 | | in the financial aid offer form; 8 |
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| 182 | 182 | | ‘‘(ii) requesting higher loan amounts 9 |
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| 183 | 183 | | if recommended loan amounts were in-10 |
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| 184 | 184 | | cluded; and 11 |
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| 185 | 185 | | ‘‘(iii) declining aid offered in the 12 |
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| 186 | 186 | | form. 13 |
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| 187 | 187 | | ‘‘(B) Information on when and how direct 14 |
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| 188 | 188 | | costs to the institution must be paid. 15 |
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| 189 | 189 | | ‘‘(C) A disclosure that verification of finan-16 |
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| 190 | 190 | | cial circumstances may require the student to 17 |
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| 191 | 191 | | submit further documentation. 18 |
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| 192 | 192 | | ‘‘(D) Information about where a student or 19 |
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| 193 | 193 | | the student’s family can seek additional infor-20 |
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| 194 | 194 | | mation regarding the financial aid offered, in-21 |
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| 195 | 195 | | cluding contact information for the institution’s 22 |
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| 196 | 196 | | financial aid office and the Department of Edu-23 |
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| 197 | 197 | | cation’s website on financial aid. 24 |
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| 199 | 199 | | kjohnson on DSK79L0C42PROD with BILLS 8 |
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| 200 | 200 | | •HR 1198 IH |
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| 201 | 201 | | ‘‘(6) ADDITIONAL INFORMATION .—Any other 1 |
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| 202 | 202 | | information the Secretary of Education, in consulta-2 |
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| 203 | 203 | | tion with the heads of relevant Federal agencies, in-3 |
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| 204 | 204 | | cluding the Secretary of the Treasury and the Direc-4 |
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| 205 | 205 | | tor of the Bureau of Consumer Financial Protection, 5 |
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| 206 | 206 | | determines necessary (based on the results of the 6 |
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| 207 | 207 | | consumer testing under paragraph (g)(2)) so that 7 |
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| 208 | 208 | | students and parents can make informed loan bor-8 |
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| 209 | 209 | | rowing decisions, which may include— 9 |
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| 210 | 210 | | ‘‘(A) the most recent cohort default rate, 10 |
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| 211 | 211 | | as defined in section 435(m) of the Higher 11 |
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| 212 | 212 | | Education Act of 1965 (20 U.S.C. 1085(m)) 12 |
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| 213 | 213 | | with respect to an institution where more than 13 |
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| 214 | 214 | | 30 percent of enrolled students borrow loans to 14 |
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| 215 | 215 | | pay for their education, and a comparison to 15 |
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| 216 | 216 | | the national average cohort default rate; 16 |
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| 217 | 217 | | ‘‘(B) the percentage of students at the in-17 |
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| 218 | 218 | | stitution who borrow student loans; 18 |
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| 219 | 219 | | ‘‘(C) the median loan debt at graduation 19 |
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| 220 | 220 | | for students at the institution (clearly marked 20 |
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| 221 | 221 | | as including only Federal loans if private loan 21 |
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| 222 | 222 | | data are not available to be included); and 22 |
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| 223 | 223 | | ‘‘(D) any additional calculations deter-23 |
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| 224 | 224 | | mined necessary for ensuring that students un-24 |
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| 226 | 226 | | kjohnson on DSK79L0C42PROD with BILLS 9 |
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| 227 | 227 | | •HR 1198 IH |
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| 228 | 228 | | derstand full college costs, financial aid gaps, 1 |
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| 229 | 229 | | and options for covering those gaps. 2 |
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| 230 | 230 | | ‘‘(c) O |
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| 231 | 231 | | THERREQUIREDCONTENTS FOR THE OFFER 3 |
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| 232 | 232 | | F |
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| 233 | 233 | | ORM.—The standard form developed under subsection 4 |
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| 234 | 234 | | (a) shall include, in addition to the information described 5 |
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| 235 | 235 | | in subsection (b), the following information to be included 6 |
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| 236 | 236 | | on the financial aid offer form in a concise format deter-7 |
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| 237 | 237 | | mined by the Secretary of Education, in consultation with 8 |
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| 238 | 238 | | the heads of relevant Federal agencies: 9 |
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| 239 | 239 | | ‘‘(1) At the institution’s discretion— 10 |
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| 240 | 240 | | ‘‘(A) additional options and potential re-11 |
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| 241 | 241 | | sources for paying for the amount listed in sub-12 |
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| 242 | 242 | | section (b)(3), such as tuition payment plans; 13 |
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| 243 | 243 | | and 14 |
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| 244 | 244 | | ‘‘(B) a disclosure that Federal Direct 15 |
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| 245 | 245 | | PLUS Loans or private education loans may be 16 |
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| 246 | 246 | | available to cover remaining need, except that 17 |
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| 247 | 247 | | the institution may not include an amount for 18 |
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| 248 | 248 | | Federal Direct PLUS Loans or private edu-19 |
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| 249 | 249 | | cation loans and must include a disclosure for 20 |
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| 250 | 250 | | Federal Direct PLUS Loans that such loans 21 |
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| 251 | 251 | | are subject to an additional application process, 22 |
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| 252 | 252 | | and a disclosure that both types of loans have 23 |
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| 253 | 253 | | to be repaid by the borrower, and may not be 24 |
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| 254 | 254 | | eligible for all the benefits available for Federal 25 |
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| 256 | 256 | | kjohnson on DSK79L0C42PROD with BILLS 10 |
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| 257 | 257 | | •HR 1198 IH |
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| 258 | 258 | | Direct Stafford Loans or Federal Direct Un-1 |
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| 259 | 259 | | subsidized Stafford Loans. 2 |
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| 260 | 260 | | ‘‘(2) The following information relating to pri-3 |
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| 261 | 261 | | vate student loans: 4 |
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| 262 | 262 | | ‘‘(A) A statement that students consid-5 |
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| 263 | 263 | | ering borrowing to cover the cost of attendance 6 |
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| 264 | 264 | | should consider available Federal student loans 7 |
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| 265 | 265 | | prior to applying for private education loans, in-8 |
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| 266 | 266 | | cluding an explanation that Federal student 9 |
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| 267 | 267 | | loans offer generally more favorable terms and 10 |
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| 268 | 268 | | beneficial repayment options than private loans. 11 |
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| 269 | 269 | | ‘‘(B) The impact of a proposed private 12 |
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| 270 | 270 | | education loan on the student’s potential eligi-13 |
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| 271 | 271 | | bility for other financial assistance, including 14 |
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| 272 | 272 | | Federal financial assistance under title IV of 15 |
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| 273 | 273 | | the Higher Education Act of 1965 (20 U.S.C. 16 |
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| 274 | 274 | | 1070 et seq.). 17 |
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| 275 | 275 | | ‘‘(C) A statement explaining the student’s 18 |
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| 276 | 276 | | ability to select a private educational lender of 19 |
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| 277 | 277 | | the student’s choice. 20 |
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| 278 | 278 | | ‘‘(3) Information on work-study employment 21 |
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| 279 | 279 | | opportunities, offered in accordance with part C of 22 |
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| 280 | 280 | | title IV of the Higher Education Act of 1965 (20 23 |
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| 281 | 281 | | U.S.C. 1087–51 et seq.) including a disclosure that 24 |
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| 282 | 282 | | the work-study aid offered is subject to the avail-25 |
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| 284 | 284 | | kjohnson on DSK79L0C42PROD with BILLS 11 |
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| 285 | 285 | | •HR 1198 IH |
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| 286 | 286 | | ability of qualified employment opportunities and is 1 |
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| 287 | 287 | | disbursed over time as earned by the student. Work- 2 |
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| 288 | 288 | | study employment opportunities (or a student’s po-3 |
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| 289 | 289 | | tential income based on those opportunities) shall 4 |
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| 290 | 290 | | not be included in the category of financial aid de-5 |
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| 291 | 291 | | scribed under subsection (b)(2). 6 |
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| 292 | 292 | | ‘‘(d) A |
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| 293 | 293 | | DDITIONALREQUIREMENTS FOR FINANCIAL 7 |
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| 294 | 294 | | A |
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| 295 | 295 | | IDOFFERFORM.—The financial aid offer form shall 8 |
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| 296 | 296 | | meet the following requirements: 9 |
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| 297 | 297 | | ‘‘(1) Include, in addition to the requirements 10 |
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| 298 | 298 | | described in subsections (b) and (c), a concise sum-11 |
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| 299 | 299 | | mary, in plain language, of— 12 |
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| 300 | 300 | | ‘‘(A) the terms and conditions of financial 13 |
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| 301 | 301 | | aid recommended under paragraphs (2) and (4) 14 |
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| 302 | 302 | | of subsection (b) and subsection (c)(3), and a 15 |
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| 303 | 303 | | method to provide students with additional in-16 |
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| 304 | 304 | | formation about such terms and conditions, 17 |
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| 305 | 305 | | such as links to the supplementary information; 18 |
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| 306 | 306 | | and 19 |
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| 307 | 307 | | ‘‘(B) Federal, State, or institutional condi-20 |
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| 308 | 308 | | tions required to receive and renew financial aid 21 |
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| 309 | 309 | | and a method to provide students with addi-22 |
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| 310 | 310 | | tional information about these conditions, such 23 |
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| 311 | 311 | | as links to the supplementary information. 24 |
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| 313 | 313 | | kjohnson on DSK79L0C42PROD with BILLS 12 |
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| 314 | 314 | | •HR 1198 IH |
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| 315 | 315 | | ‘‘(2) Clearly distinguish between the aid offered 1 |
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| 316 | 316 | | under paragraphs (2) and (4) of subsection (b) and 2 |
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| 317 | 317 | | subsection (c)(3), by including a subtotal for the aid 3 |
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| 318 | 318 | | offered in each of such paragraphs and by refraining 4 |
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| 319 | 319 | | from commingling the different types of aid de-5 |
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| 320 | 320 | | scribed in such paragraphs. 6 |
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| 321 | 321 | | ‘‘(3) Use standard terminology and definitions, 7 |
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| 322 | 322 | | as described in subsection (e)(1) and use plain lan-8 |
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| 323 | 323 | | guage where possible. 9 |
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| 324 | 324 | | ‘‘(4) If an institution’s recommended Federal 10 |
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| 325 | 325 | | student loan aid offered in subsection (b)(4) is less 11 |
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| 326 | 326 | | than the Federal maximum available to the student, 12 |
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| 327 | 327 | | the institution shall provide additional information 13 |
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| 328 | 328 | | on Federal student loans, including the types and 14 |
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| 329 | 329 | | amounts for which the student is eligible in an at-15 |
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| 330 | 330 | | tached document or webpage. 16 |
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| 331 | 331 | | ‘‘(5) Use the standard offer form described in 17 |
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| 332 | 332 | | subsection (e)(2). 18 |
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| 333 | 333 | | ‘‘(6) Include the standardized statement regard-19 |
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| 334 | 334 | | ing the possible availability of Federal education 20 |
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| 335 | 335 | | benefits, as established by the Secretary in accord-21 |
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| 336 | 336 | | ance with subsection (e)(3). 22 |
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| 337 | 337 | | ‘‘(7) Include a delivery confirmation for elec-23 |
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| 338 | 338 | | tronic financial aid offer forms, except that receipt 24 |
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| 339 | 339 | | of the financial aid offer form shall not be consid-25 |
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| 341 | 341 | | kjohnson on DSK79L0C42PROD with BILLS 13 |
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| 342 | 342 | | •HR 1198 IH |
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| 343 | 343 | | ered an acceptance or rejection of aid by the stu-1 |
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| 344 | 344 | | dent. 2 |
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| 345 | 345 | | ‘‘(8) With respect to dependent students, any 3 |
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| 346 | 346 | | reference to private education loans shall be accom-4 |
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| 347 | 347 | | panied by— 5 |
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| 348 | 348 | | ‘‘(A) information about the availability of, 6 |
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| 349 | 349 | | and terms and conditions associated with, Fed-7 |
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| 350 | 350 | | eral Direct PLUS Loans under section 455 of 8 |
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| 351 | 351 | | the Higher Education Act of 1965 (20 U.S.C. 9 |
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| 352 | 352 | | 1087e) for the student’s parents regardless of 10 |
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| 353 | 353 | | family income; and 11 |
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| 354 | 354 | | ‘‘(B) a notification of the student’s in-12 |
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| 355 | 355 | | creased eligibility for Federal student loans 13 |
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| 356 | 356 | | under title IV of the Higher Education Act of 14 |
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| 357 | 357 | | 1965 (20 U.S.C. 1070 et seq.) if the student’s 15 |
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| 358 | 358 | | parents are not able to borrow under the Fed-16 |
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| 359 | 359 | | eral Direct PLUS Loan program. 17 |
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| 360 | 360 | | ‘‘(e) S |
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| 361 | 361 | | TANDARDINFORMATION ESTABLISHED BY 18 |
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| 362 | 362 | | THESECRETARY.— 19 |
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| 363 | 363 | | ‘‘(1) S |
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| 364 | 364 | | TANDARD TERMINOLOGY .—Not later 20 |
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| 365 | 365 | | than 3 months after the date of enactment of the 21 |
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| 366 | 366 | | Understanding the True Cost of College Act of 22 |
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| 367 | 367 | | 2023, the Secretary of Education, in consultation 23 |
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| 368 | 368 | | with the heads of relevant Federal agencies, includ-24 |
|---|
| 369 | 369 | | ing the Secretary of the Treasury and the Director 25 |
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| 371 | 371 | | kjohnson on DSK79L0C42PROD with BILLS 14 |
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| 372 | 372 | | •HR 1198 IH |
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| 373 | 373 | | of the Consumer Financial Protection Bureau, rep-1 |
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| 374 | 374 | | resentatives of institutions of higher education, non-2 |
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| 375 | 375 | | profit consumer groups, students, and secondary 3 |
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| 376 | 376 | | school and higher education guidance counselors, 4 |
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| 377 | 377 | | shall establish standard terminology and definitions 5 |
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| 378 | 378 | | for the terms described in subsection (b). 6 |
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| 379 | 379 | | ‘‘(2) S |
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| 380 | 380 | | TANDARD FORM.— 7 |
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| 381 | 381 | | ‘‘(A) I |
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| 382 | 382 | | N GENERAL.—The Secretary of Edu-8 |
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| 383 | 383 | | cation shall develop multiple draft financial aid 9 |
|---|
| 384 | 384 | | offer forms for consumer testing, carry out con-10 |
|---|
| 385 | 385 | | sumer testing for such forms, and establish a fi-11 |
|---|
| 386 | 386 | | nalized standard financial aid offer form, in ac-12 |
|---|
| 387 | 387 | | cordance with the process established in sub-13 |
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| 388 | 388 | | section (g) and the requirements of this section. 14 |
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| 389 | 389 | | ‘‘(B) S |
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| 390 | 390 | | EPARATE FINANCIAL AID OFFER 15 |
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| 391 | 391 | | FORMS.—The Secretary may develop separate 16 |
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| 392 | 392 | | financial aid offer forms for— 17 |
|---|
| 393 | 393 | | ‘‘(i) undergraduate students and grad-18 |
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| 394 | 394 | | uate students; and 19 |
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| 395 | 395 | | ‘‘(ii) first-time students and returning 20 |
|---|
| 396 | 396 | | students. 21 |
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| 397 | 397 | | ‘‘(3) A |
|---|
| 398 | 398 | | DDITIONAL BENEFITS.—The Secretary of 22 |
|---|
| 399 | 399 | | Education, in consultation with the heads of relevant 23 |
|---|
| 400 | 400 | | Federal agencies, including the Secretary of the 24 |
|---|
| 401 | 401 | | Treasury, the Secretary of Veterans Affairs, the Sec-25 |
|---|
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| 404 | 404 | | •HR 1198 IH |
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| 405 | 405 | | retary of Defense, and the Director of the Consumer 1 |
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| 406 | 406 | | Financial Protection Bureau, shall establish stand-2 |
|---|
| 407 | 407 | | ard language notifying students that they may be el-3 |
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| 408 | 408 | | igible for education benefits (and where students can 4 |
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| 409 | 409 | | locate more information about such benefits,) includ-5 |
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| 410 | 410 | | ing benefits in accordance with each of the following: 6 |
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| 411 | 411 | | ‘‘(A) Chapter 30, 31, 32, 33, 34, or 35 of 7 |
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| 412 | 412 | | title 38, United States Code. 8 |
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| 413 | 413 | | ‘‘(B) Chapter 101, 105, 106A, 1606, 1607, 9 |
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| 414 | 414 | | or 1608 of title 10, United States Code. 10 |
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| 415 | 415 | | ‘‘(C) Section 1784a, 2005, or 2007 of title 11 |
|---|
| 416 | 416 | | 10, United States Code. 12 |
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| 417 | 417 | | ‘‘(f) S |
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| 418 | 418 | | UPPLEMENTAL INFORMATION; REMOVAL OF 13 |
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| 419 | 419 | | I |
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| 420 | 420 | | NFORMATION.— 14 |
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| 421 | 421 | | ‘‘(1) Nothing in this section shall preclude an 15 |
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| 422 | 422 | | institution from supplementing the financial aid 16 |
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| 423 | 423 | | offer form with additional information if such addi-17 |
|---|
| 424 | 424 | | tional information supplements the financial aid 18 |
|---|
| 425 | 425 | | offer form and is not located on the financial aid 19 |
|---|
| 426 | 426 | | offer form, and provided such information utilizes 20 |
|---|
| 427 | 427 | | the same standard terminology identified in sub-21 |
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| 428 | 428 | | section (e)(1). 22 |
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| 429 | 429 | | ‘‘(2) Nothing in this section shall preclude an 23 |
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| 430 | 430 | | institution from deleting a required item if the stu-24 |
|---|
| 431 | 431 | | dent is ineligible for such aid. 25 |
|---|
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| 434 | 434 | | •HR 1198 IH |
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| 435 | 435 | | ‘‘(g) DEVELOPMENT OF FINANCIALAIDOFFER 1 |
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| 436 | 436 | | F |
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| 437 | 437 | | ORM.— 2 |
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| 438 | 438 | | ‘‘(1) D |
|---|
| 439 | 439 | | RAFT FORM.—Not later than 9 months 3 |
|---|
| 440 | 440 | | after the date of enactment of the Understanding 4 |
|---|
| 441 | 441 | | the True Cost of College Act of 2023, the Secretary 5 |
|---|
| 442 | 442 | | of Education, in consultation with the heads of rel-6 |
|---|
| 443 | 443 | | evant Federal agencies, including the Secretary of 7 |
|---|
| 444 | 444 | | the Treasury and the Director of the Consumer Fi-8 |
|---|
| 445 | 445 | | nancial Protection Bureau, representatives of insti-9 |
|---|
| 446 | 446 | | tutions of higher education, nonprofit consumer 10 |
|---|
| 447 | 447 | | groups, students, and secondary school and higher 11 |
|---|
| 448 | 448 | | education guidance counselors, shall design and 12 |
|---|
| 449 | 449 | | produce multiple draft financial aid offer forms for 13 |
|---|
| 450 | 450 | | consumer testing with postsecondary students or 14 |
|---|
| 451 | 451 | | prospective students. In developing that form, the 15 |
|---|
| 452 | 452 | | Secretary shall ensure— 16 |
|---|
| 453 | 453 | | ‘‘(A) that the headings described in para-17 |
|---|
| 454 | 454 | | graphs (1) through (4) of subsection (b) is in 18 |
|---|
| 455 | 455 | | the same font, appears in the same order, and 19 |
|---|
| 456 | 456 | | is displayed prominently on the financial aid 20 |
|---|
| 457 | 457 | | offer form, such that none of that information 21 |
|---|
| 458 | 458 | | is inappropriately omitted or de-emphasized; 22 |
|---|
| 459 | 459 | | ‘‘(B) that the other information required 23 |
|---|
| 460 | 460 | | in subsection (b) appears in a standard format 24 |
|---|
| 461 | 461 | | and design on the financial aid offer form; and 25 |
|---|
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| 464 | 464 | | •HR 1198 IH |
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| 465 | 465 | | ‘‘(C) that the institution may include a 1 |
|---|
| 466 | 466 | | logo or brand alongside the title of the financial 2 |
|---|
| 467 | 467 | | aid offer form. 3 |
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| 468 | 468 | | ‘‘(2) C |
|---|
| 469 | 469 | | ONSUMER TESTING.— 4 |
|---|
| 470 | 470 | | ‘‘(A) I |
|---|
| 471 | 471 | | N GENERAL.—Not later than 9 5 |
|---|
| 472 | 472 | | months after the date of enactment of the Un-6 |
|---|
| 473 | 473 | | derstanding the True Cost of College Act of 7 |
|---|
| 474 | 474 | | 2023, the Secretary of Education, in consulta-8 |
|---|
| 475 | 475 | | tion with the heads of relevant Federal agen-9 |
|---|
| 476 | 476 | | cies, shall establish a process to submit the fi-10 |
|---|
| 477 | 477 | | nancial aid offer form drafts developed under 11 |
|---|
| 478 | 478 | | paragraph (1) for consumer testing among rep-12 |
|---|
| 479 | 479 | | resentatives of students (including low-income 13 |
|---|
| 480 | 480 | | students, first generation college students, adult 14 |
|---|
| 481 | 481 | | students, veterans, servicemembers, and pro-15 |
|---|
| 482 | 482 | | spective students), students’ families (including 16 |
|---|
| 483 | 483 | | low-income families, families with first genera-17 |
|---|
| 484 | 484 | | tion college students, and families with prospec-18 |
|---|
| 485 | 485 | | tive students), institutions of higher education, 19 |
|---|
| 486 | 486 | | secondary school and postsecondary counselors, 20 |
|---|
| 487 | 487 | | and nonprofit consumer groups. 21 |
|---|
| 488 | 488 | | ‘‘(B) P |
|---|
| 489 | 489 | | ILOT.—During such consumer test-22 |
|---|
| 490 | 490 | | ing, the Secretary shall ensure that not less 23 |
|---|
| 491 | 491 | | than 16 and not more than 24 eligible institu-24 |
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| 493 | 493 | | kjohnson on DSK79L0C42PROD with BILLS 18 |
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| 494 | 494 | | •HR 1198 IH |
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| 495 | 495 | | tions use the draft forms developed under para-1 |
|---|
| 496 | 496 | | graph (1), including institutions— 2 |
|---|
| 497 | 497 | | ‘‘(i) that reflect a proportionate rep-3 |
|---|
| 498 | 498 | | resentation (based on the total number of 4 |
|---|
| 499 | 499 | | students enrolled in postsecondary edu-5 |
|---|
| 500 | 500 | | cation) of community colleges, for-profit 6 |
|---|
| 501 | 501 | | institutions, four-year public institutions, 7 |
|---|
| 502 | 502 | | and four-year private nonprofit institu-8 |
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| 503 | 503 | | tions; and 9 |
|---|
| 504 | 504 | | ‘‘(ii) that reflect geographic diversity. 10 |
|---|
| 505 | 505 | | ‘‘(C) L |
|---|
| 506 | 506 | | ENGTH OF CONSUMER TESTING .— 11 |
|---|
| 507 | 507 | | The Secretary of Education shall ensure that 12 |
|---|
| 508 | 508 | | the consumer testing under this paragraph lasts 13 |
|---|
| 509 | 509 | | no longer than 8 months after the process for 14 |
|---|
| 510 | 510 | | consumer testing is developed under subpara-15 |
|---|
| 511 | 511 | | graph (A). 16 |
|---|
| 512 | 512 | | ‘‘(3) F |
|---|
| 513 | 513 | | INAL FORM.— 17 |
|---|
| 514 | 514 | | ‘‘(A) I |
|---|
| 515 | 515 | | N GENERAL.—The results of con-18 |
|---|
| 516 | 516 | | sumer testing under paragraph (2) shall be 19 |
|---|
| 517 | 517 | | used in the final development of the financial 20 |
|---|
| 518 | 518 | | aid offer form. 21 |
|---|
| 519 | 519 | | ‘‘(B) R |
|---|
| 520 | 520 | | EPORTING REQUIREMENT .—Not 22 |
|---|
| 521 | 521 | | later than 3 months after the date the con-23 |
|---|
| 522 | 522 | | sumer testing under paragraph (2) concludes, 24 |
|---|
| 523 | 523 | | the Secretary of Education shall submit to Con-25 |
|---|
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| 525 | 525 | | kjohnson on DSK79L0C42PROD with BILLS 19 |
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| 526 | 526 | | •HR 1198 IH |
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| 527 | 527 | | gress and publish on its website the final stand-1 |
|---|
| 528 | 528 | | ard financial aid offer form and a report detail-2 |
|---|
| 529 | 529 | | ing the results of such testing, including wheth-3 |
|---|
| 530 | 530 | | er the Secretary of Education added any addi-4 |
|---|
| 531 | 531 | | tional items to the standard financial aid offer 5 |
|---|
| 532 | 532 | | form pursuant to subsection (b)(6). 6 |
|---|
| 533 | 533 | | ‘‘(4) A |
|---|
| 534 | 534 | | UTHORITY TO MODIFY .—The Secretary 7 |
|---|
| 535 | 535 | | of Education may modify the definitions, terms, for-8 |
|---|
| 536 | 536 | | matting, and design of the financial aid offer form 9 |
|---|
| 537 | 537 | | based on the results of consumer testing required 10 |
|---|
| 538 | 538 | | under this subsection and before finalizing the form, 11 |
|---|
| 539 | 539 | | or in subsequent consumer testing. The Secretary 12 |
|---|
| 540 | 540 | | may also recommend additional changes to Con-13 |
|---|
| 541 | 541 | | gress.’’. 14 |
|---|
| 542 | 542 | | SEC. 3. MANDATORY FORM. 15 |
|---|
| 543 | 543 | | Part B of title I of the Higher Education Act of 1965 16 |
|---|
| 544 | 544 | | (20 U.S.C. 1011 et seq.) is amended by adding at the end 17 |
|---|
| 545 | 545 | | the following: 18 |
|---|
| 546 | 546 | | ‘‘SEC. 124. USE OF MANDATORY FINANCIAL AID OFFER 19 |
|---|
| 547 | 547 | | FORM AND TERMS. 20 |
|---|
| 548 | 548 | | ‘‘(a) I |
|---|
| 549 | 549 | | NGENERAL.—Notwithstanding any other pro-21 |
|---|
| 550 | 550 | | vision of law, each institution of higher education that re-22 |
|---|
| 551 | 551 | | ceives Federal financial assistance under this Act shall— 23 |
|---|
| 552 | 552 | | ‘‘(1) use the financial aid offer form developed 24 |
|---|
| 553 | 553 | | under section 484 of the Higher Education Oppor-25 |
|---|
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| 556 | 556 | | •HR 1198 IH |
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| 557 | 557 | | tunity Act (20 U.S.C. 1092 note) in providing 1 |
|---|
| 558 | 558 | | paper, mobile-optimized offers, or other electronic of-2 |
|---|
| 559 | 559 | | fers to all students who apply for aid and are accept-3 |
|---|
| 560 | 560 | | ed at the institution; and 4 |
|---|
| 561 | 561 | | ‘‘(2) use the standard terminology and defini-5 |
|---|
| 562 | 562 | | tions developed by the Secretary of Education under 6 |
|---|
| 563 | 563 | | subsection (e)(1) of that Act for all communications 7 |
|---|
| 564 | 564 | | from the institution related to financial aid offers. 8 |
|---|
| 565 | 565 | | ‘‘(b) E |
|---|
| 566 | 566 | | FFECTIVEDATES.—The requirements under 9 |
|---|
| 567 | 567 | | this section shall take effect at the start of the first award 10 |
|---|
| 568 | 568 | | year after the Secretary of Education finalizes the stand-11 |
|---|
| 569 | 569 | | ard terminology and form developed in accordance with 12 |
|---|
| 570 | 570 | | section 484 of the Higher Education Opportunity Act (20 13 |
|---|
| 571 | 571 | | U.S.C. 1092 note). 14 |
|---|
| 572 | 572 | | ‘‘(c) A |
|---|
| 573 | 573 | | DMINISTRATIVEPROCEDURES.—Section 492 15 |
|---|
| 574 | 574 | | of the Higher Education Act (20 U.S.C. 1098a) shall not 16 |
|---|
| 575 | 575 | | apply with respect to regulations promulgated in accord-17 |
|---|
| 576 | 576 | | ance with this section.’’. 18 |
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| 577 | 577 | | Æ |
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