,,ii  #aacth ,,congress  #ast ,session  
,s4 #aaef  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #ac1     
#bjac ,mr4 ,franken 7for himself1 ,mr4  
,grassley1 ,mr4 ,harkin1 ,mr4 ,rubio1   
,mrs4 ,gillibrand1 ,mrs4 ,murray1 ,mr4  
,cardin1 ,mr4 ,schumer1 ,mr4 ,carper1   
,mr4 ,blumenthal1 ,mr4 ,wyden1 ,mr4     
,durbin1 ,mr4 ,whitehouse1 ,mr4 ,johnson
 of ,south ,dakota1 ,mr4 ,coons1 and    
,ms4 ,mikulski7 introduced the following
 bill2 which was read twice and referred
 to the ,committee on ,health1          
,education1 ,labor1 and ,pensions  ,a   
,,bill  ,to amend the ,higher ,education
 ,opportunity ,act to add disclosure    
requirements to the institution         
financial aid offer form and to amend   
the ,higher ,education ,act of #aife to 
make such form mandatory4  #a4 ,short   
title ,this ,act may be cited as the    
,understanding the ,true ,cost of       
,college ,act of #bjac4  #b4            
,institution financial aid offer form   
7a7 ,institution financial aid offer    

form ,section #dhd of the ,higher       
,education ,opportunity ,act 7#bj       
,u4,s4,c4 #ajib note7 is amended--  7#a7
 by striking subsection 7a7 and         
inserting the following3  7a7 ,standard 
,format ,the ,secretary of ,education1  
in consultation with the heads of       
relevant ,federal agencies1 shall       
develop a standard format for financial 
aid offer forms based on recommendations
 from representatives of students1      
students' families1 institutions of     
higher education1 secondary school and  
postsecondary counselors1 and nonprofit 
consumer groups4  2  7#b7 by striking   
subsection 7b7 and inserting the        
following3  7b7 ,key required contents  
for offer form ,the standard format     
developed under subsection 7a7 shall    
include1 in a consumer-friendly manner  
that is simple and understandable1 the  
following items clearly separated from  
each other and listed on the first page 
of the financial aid offer form in      
either electronic or written format3    

7#a7 ,information on the student's cost 
of attendance based on the most current 
costs for the academic period covered by
 the financial aid offer form1 including
 the following3  7,a7 ,tuition and fees1
 as determined under section #dgb of the
 ,higher ,education ,act of #aife 7#bj  
,u4,s4,c4 #ajhgll74  7,b7 ,room and     
board costs1 as determined under section
 #dgb of the ,higher ,education ,act of 
#aife 7#bj ,u4,s4,c4 #ajhgll74  7,c7    
,books and supplies1 as determined under
 section #dgb of the ,higher ,education 
,act of #aife 7#bj ,u4,s4,c4 #ajhgll74  
7,d7 ,transportation1 as determined     
under section #dgb of the ,higher       
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhgll74  7,e7 ,miscellaneous personal 
expenses1 as determined under section   
#dgb of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajhgll74  7#b7    
,the amount of financial aid that the   
student does not have to repay1 such as 
scholarships1 grant aid offered under   
title ,,iv of the ,higher ,education    

,act of #aife 7#bj ,u4,s4,c4 #ajgj et   
seq471 or grant aid offered by the      
institution1 a ,state1 or an outside    
source to the student for such academic 
period1 including a disclosure that the 
financial aid does not have to be repaid
 and whether the student can expect to  
receive similar amounts of such         
financial aid for each academic period  
the student is enrolled at the          
institution4  7#c7 ,the net price that  
the student1 or the student's family on 
behalf of the student1 will have to pay 
for the student to attend the           
institution for such academic period1   
equal to--  7,a7 the cost of attendance 
as described in paragraph 7#a7 for the  
student for such academic period1 minus 
7,b7 the amount of financial aid        
described in paragraph 7#b7 that is     
included in the financial aid offer     
form4  7#d7 ,work study assistance1     
including a disclosure that the aid must
 be earned by the student and a         
disclosure that the assistance offered  

is subject to the availability of       
employment opportunities4  7#e7 ,the    
types and amounts of loans under part ,d
 or ,e of title ,,iv of the ,higher     
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg;a et seq41 #ajhg;aa et seq47 that 
the institution recommends for the      
student for such academic period1 a     
disclosure that such loans have to be   
repaid1 a disclosure that the student   
can borrow a lesser amount than the     
recommended loan amount1 a clear use of 
the word loan to describe the           
recommended loan amounts1 the interest  
rates1 fees1 the expected monthly       
repayment amounts 7assuming a #aj-year  
repayment plan71 the total amount the   
student will pay over the life of the   
loans 7assuming a #aj-year repayment    
plan71 and a disclosure that the student
 may be eligible for longer repayment   
terms1 such as extended or income-based 
plans1 and that longer repayment terms  
may result in the student paying more   
money over the life of the loans4  7#f7 

,where a student or the student's family
 can seek additional information        
regarding the financial aid offered1    
including contact information for the   
institution's financial aid office and  
the ,department of ,education's website 
on financial aid4  7#g7 ,a disclosure   
that ,federal student loans offer       
generally more favorable terms and      
beneficial repayment options than       
private education loans so students     
should examine available ,federal       
student loan options before applying for
 private education loans1 and an        
explanation to be written by the        
,secretary of ,education1 in            
consultation with the heads of relevant 
,federal agencies1 of the benefits      
unique to ,federal student loans1       
including various repayment plans1 loan 
forgiveness1 and loan deferment1 and the
 terms to examine carefully if          
considering a private education loan4   
7#h7 ,the deadline and summary of the   
process1 if any1 for accepting the      

financial aid offered in the financial  
aid offer form4  7#i7 ,the academic     
period covered by the financial aid     
offer form and a clear indication       
whether the aid offered is based on     
full-time or part-time enrollment4      
7#aj7 ,with respect to institutions     
where more than #cj percent of enrolled 
students borrow loans to pay for their  
education1 the institution's most recent
 cohort default rate1 as defined in     
section #dce7m7 of the ,higher          
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhe7m771 compared to the national     
average cohort default rate4  7#aa7 ,any
 other information the ,secretary of    
,education1 in consultation with the    
heads of relevant ,federal agencies1    
determines necessary so that students   
and parents can make informed loan      
borrowing decisions1 including quality  
metrics such as percentage of students  
at the institution who take out student 
loans and average debt at graduation for
 students at the institution4  2 and    

7#c7 by adding at the end the following3
  7c7 ,other required contents for the  
offer form ,the standard format         
developed under subsection 7a7 shall    
also include the following information  
to be included on the financial aid     
offer form in a concise format          
determined by the ,secretary of         
,education1 in consultation with the    
heads of relevant ,federal agencies3    
7#a7 ,a concise summary of the terms and
 conditions of financial aid recommended
 under paragraphs 7#b71 7#d71 and 7#e7  
of subsection 7b71 and a method to      
provide students with additional        
information about such terms and        
conditions1 such as links to the        
supplementary information4  7#b7 ,at the
 institution's discretion1 additional   
options for paying for the net amount   
listed in subsection 7b77#c71 such as   
the amount recommended to be paid by the
 student or student's family1 ,federal  
,direct ,,plus ,loans under section #dee
 of the ,higher ,education ,act of #aife

 7#bj ,u4,s4,c4 #ajhg;e71 or private    
education loans4 ,if the institution    
recommends private education loans1 as  
defined in section #adj of the ,truth in
 ,lending ,act 7#ae ,u4,s4,c4 #afej71   
the financial aid offer form shall      
contain the additional following        
disclosures on the offer form3  7,a7    
,the availability of1 and the student's 
potential eligibility for1 ,federal     
financial assistance under title ,,iv of
 the ,higher ,education ,act of #aife   
7#bj ,u4,s4,c4 #ajgj et seq474  7,b7    
,the impact of a proposed private       
education loan on the student's         
potential eligibility for other         
financial assistance1 including ,federal
 financial assistance under title ,,iv  
of the ,higher ,education ,act of #aife 
7#bj ,u4,s4,c4 #ajgj et seq474  7,c7    
,the student's ability to select a      
private educational lender of the       
student's choice4  7,d7 ,the student's  
right to accept or reject a private     
education loan within the #cj-;day      

period following a private educational  
lender's approval of a student's        
application and a student's #c-;day     
right-to-cancel period4  7,e7 ,with     
respect to dependent students1 any      
reference to private education loans    
shall be accompanied by information     
about the recommended family            
contribution and the availability of1   
and terms and conditions associated     
with1 ,federal ,direct ,,plus ,loans    
under section #dee of the ,higher       
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg;e7 for the student's parents      
regardless of family income1 and of the 
student's increased eligibility for     
,federal student loans under title ,,iv 
of the ,higher ,education ,act of #aife 
7#bj ,u4,s4,c4 #ajgj et seq47 if the    
student's parents are not able to borrow
 under the ,federal ,direct ,,plus ,loan
 program4  7#c7 ,the following          
disclosures3  7,a7 ,that the financial  
aid offer form only contains information
 for #a academic period and the         

financial aid offered in following      
academic periods may change1 unless the 
institution is offering aid that covers 
multiple academic periods4  7,b7 ,how   
non-institutional scholarships awarded  
to the student affect the financial aid 
package offered to the student4  7,c7 ,a
 concise summary of any ,federal or     
institutional conditions required to    
receive and renew financial aid and a   
method to provide students with         
additional information about these      
conditions1 such as links to the        
supplementary information4  7d7         
,additional requirements for financial  
aid offer form ,in addition to the      
requirements listed under subsections   
7b7 and 7c71 the financial aid offer    
form shall meet the following           
requirements3  7#a7 ,clearly distinguish
 between the aid offered in paragraphs  
7#b71 7#d71 and 7#e7 of subsection 7b71 
by including a subtotal for the aid     
offered in each of such paragraphs and  
by refraining from commingling the      

different types of aid described in such
 paragraphs4  7#b7 ,use standard        
definitions and names for the terms     
described in subsection 7b7 that are    
developed by the ,secretary of          
,education in consultation with the     
heads of relevant ,federal agencies1    
representatives of institutions of      
higher education1 nonprofit consumer    
groups1 students1 and secondary school  
and higher education guidance           
counselors1 not later than #c months    
after the date of enactment of the      
,understanding the ,true ,cost of       
,college ,act of #bjac4  7#c7 ,if an    
institution's recommended ,federal      
student loan aid offered in subsection  
7b77#e7 is less than the ,federal       
maximum available to the student1 the   
institution shall provide additional    
information on ,federal student loans1  
including the types and amounts for     
which the student is eligible in an     
attached document or webpage4  7#d7 ,use
 standard formatting and design that the

 ,secretary of ,education1 in           
consultation with the heads of relevant 
,federal agencies1 representatives of   
institutions of higher education1       
nonprofit consumer groups1 students1 and
 secondary school and higher education  
guidance counselors determine is        
appropriate to produce multiple draft   
financial aid offer designs for consumer
 testing not later than #c months after 
the date of enactment of the            
,understanding the ,true ,cost of       
,college ,act of #bjac to ensure--  7,a7
 that figures described in paragraphs   
7#a7 through 7#e7 of subsection 7b7 are 
in the same font1 appear in the same    
order1 and are displayed prominently on 
the first page of the financial aid     
offer form whether produced in written  
or electronic format2 and  7,b7 that the
 other information required in 7b7 and  
7c7 appears in a standard format and    
design on the financial aid offer form4 
7#e7 ,include an attestation that the   
student has accessed and read the       

financial aid offer form1 if provided to
 the student in electronic format4  7#f7
 ,include language developed by the     
,secretary of ,education1 in            
consultation with the heads of relevant 
,federal agencies1 notifying eligible   
students that they may be eligible for  
education benefits1 and where they can  
locate more information about such      
benefits1 described in the following    
provisions3  7,a7 ,chapter #cj1 #ca1    
#cb1 #cc1 #cd1 or #ce of title #ch1     
,united ,states ,code4  7,b7 ,chapter   
#aja1 #aje1 #ajf;,a1 #afjf1 #afjg1 or   
#afjh of title #aj1 ,united ,states     
,code4  7,c7 ,section #aghd;a1 #bjje1 or
 #bjjg of title #aj1 ,united ,states    
,code4  7e7 ,additional information     
,nothing in this section shall preclude 
an institution from supplementing the   
financial aid offer form with additional
 information so long as such additional 
information supplements the financial   
aid offer form and is not located on the
 financial aid offer form4  7f7         

,consumer testing  7#a7 ,in general ,not
 later than #c months after the date of 
enactment of the ,understanding the     
,true ,cost of ,college ,act of #bjac1  
the ,secretary of ,education1 in        
consultation with the heads of relevant 
,federal agencies1 shall establish a    
process to submit the financial aid     
offer form developed under this section 
for consumer testing among              
representatives of students 7including  
low-income students1 first generation   
college students1 adult students1 and   
prospective students71 students'        
families 7including low-income families1
 families with first generation college 
students1 and families with prospective 
students71 institutions of higher       
education1 secondary school and         
postsecondary counselors1 and nonprofit 
consumer groups4  7#b7 ,length of       
,consumer ,testing ,the ,secretary of   
,education shall ensure that the        
consumer testing lasts no longer than #f
 months after the process for consumer  

testing is developed under paragraph    
7#a74  7#c7 ,use of results ,the results
 of consumer testing under paragraph    
7#a7 shall be used in the final         
development of the financial aid offer  
form4  7#d7 ,reporting requirement ,not 
later than #c months after the date the 
consumer testing under paragraph 7#a7   
concludes1 the ,secretary of ,education 
shall submit to ,congress the final     
standard financial aid offer form and a 
report detailing the results of such    
testing1 including whether the          
,secretary added any additional items to
 the standard financial aid offer form  
pursuant to subsection 7b77#aj74  7#e7  
,authority to modify ,the ,secretary of 
,education may modify the definitions1  
terms1 formatting1 and design of the    
financial aid offer form based on the   
results of consumer testing required    
under this subsection and before        
finalizing the form4  4  7b7 ,mandatory 
form ,part ,b of title ,i of the ,higher
 ,education ,act of #aife 7#bj ,u4,s4,c4

 #ajaa et seq47 is amended by adding at 
the end the following3  #abd4 ,use of   
mandatory financial aid offer form  7a7 
,in general ,notwithstanding any other  
provision of law1 each institution of   
higher education that receives ,federal 
financial assistance under this ,act    
shall use the financial aid offer form  
developed under section #dhd of the     
,higher ,education ,opportunity ,act    
7#bj ,u4,s4,c4 #ajib note7 in providing 
written or electronic financial aid     
offers to students enrolled in1 or      
accepted for enrollment in1 the         
institution4  7b7 ,effective date ,the  
requirement under subsection 7a7 shall  
take effect #h months after the         
,secretary of ,education finalizes the  
offer form developed under section      
#dhd7;a7 of the ,higher ,education      
,opportunity ,act 7#bj ,u4,s4,c4 #ajib  
note74  4