,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bcba  ,,in ,,the ,,house ,,of  
,,representatives  ,april #ab1 #bjai    
,mr4 ,van ,drew introduced the following
 bill2 which was referred to the        
,committee on ,education and ,labor  ,a 
,,bill  ,to require a standard financial
 aid offer form1 and for other purposes4
  #a4 ,short title ,this ,act may be    
cited as the ,understanding the ,true   
,cost of ,college ,act of #bjai4  #b4   
,institution financial aid offer form   
,section #dhd of the ,higher ,education 
,opportunity ,act 7#bj ,u4,s4,c4 #ajib  
note7 is amended to read as follows3    
#dhd4 ,institution ,financial ,aid      
,offer ,form  7a7 ,standard format and  
terminology ,the ,secretary of          
,education1 in consultation with the    
heads of relevant ,federal agencies1    
shall develop standard terminology and a
 standard format for financial aid offer
 forms based on recommendations from    
representatives of students1 veterans1  
servicemembers1 students' families1     

institutions of higher education        
7including community colleges1          
for-profit institutions1 four-year      
public institutions1 and four-year      
private nonprofit institutions71        
financial aid experts1 secondary school 
and postsecondary counselors1 nonprofit 
organizations1 and consumer groups4  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 a form titled       
,financial ,aid ,offer1 which shall     
include the following items clearly     
separated from each other with separate 
headings1 and1 if in paper format1      
listed on the first page of the         
financial aid offer form3  7#a7 ,cost   
information  7,a7 ,information on the   
student's estimated cost of attendance1 
including the following3 7i7 ,total     
direct costs1 including the component   
totals each for--  7,i7 tuition and     
fees1 as determined under section #dgb  

of the ,higher ,education ,act of #aife 
7#bj ,u4,s4,c4 #ajhgll72 and  7,,ii7    
college-sponsored housing and food costs
 7as determined based on the costs for  
room and board under such section74     
7ii7 ,total estimated other expenses1   
including-- 7,i7 the component totals   
each for housing and food costs for     
students who reside off-campus2 and     
7,,ii7 for all students1 books1         
supplies1 transportation1 and           
miscellaneous personal expenses 7which  
may include costs of health insurance   
and dependent care71 as determined under
 section #dgb of the ,higher ,education 
,act of #aife 7#bj ,u4,s4,c4 #ajhgll74  
7,b7 ,an indication of the academic     
period covered by the financial aid     
offer1 and an explanation that the      
financial aid offered may change for    
academic periods not covered by the aid 
offer4  7,c7 ,an indication of whether  
cost and aid estimates are based on     
full-time or part-time enrollment4  7,d7
 ,an indication1 as applicable1 about   

whether the tuition and fees are        
estimated based on the previous year1 or
 are set1 for the academic period       
indicated in accordance with            
subparagraph 7,b74  7#b7 ,financial aid 
,the amount and source 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 grant aid offered       
through other ,federal programs1 or     
grant aid offered by the institution1 a 
,state1 or1 if known1 an outside source 
to the student for such academic period1
 including-- 7,a7 a disclosure that the 
financial aid does not have to be       
repaid2 and  7,b7 if institutional aid  
is included-- 7i7 the conditions under  
which the student can expect to receive 
similar amounts of such financial aid   
for each academic period the student is 
enrolled at the institution2 and  7ii7  
whether the institutional aid offer may 
change if grants or scholarships from   

outside sources are applied after the   
student receives the offer form1 and1 if
 applicable1 how that aid will change4  
7#c7 ,net price  7,a7 ,the net price    
that the student1 or the student's      
family on behalf of the student1 is     
estimated to have to pay for the student
 to attend the institution for such     
academic period1 equal to--  7i7 the    
cost of attendance as described in      
paragraph 7#a77;,a7 for the student for 
the period indicated in paragraph       
7#a77;,b72 minus  7ii7 the amount of    
grant aid described in paragraph 7#b7   
that is included in the financial aid   
offer form4  7,b7 ,a disclosure that the
 net price is an estimate of the total  
expenses for the year and not equivalent
 to the amount the student will owe     
directly to the institution4  7#d7      
,work-study ,information on work-study  
employment opportunities1 offered in    
accordance with part ,c of title ,,iv of
 the ,higher ,education ,act of #aife   
7#bj ,u4,s4,c4 #ajhg-ea et seq47        

including a disclosure that the         
work-study aid offered is subject to the
 availability of qualified employment   
opportunities and is disbursed over time
 as earned by the student4 ,work-study  
employment opportunities 7or a student's
 potential income based on those        
opportunities7 shall not be included in 
the category of financial aid described 
under paragraph 7#b74  7#e7 ,loans  7,a7
 ,information on any loan under part ,d 
or part ,e of title ,,iv of the ,higher 
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg;a et seq42 #bj ,u4,s4,c4 #ajhg;aa 
et seq47 7except a ,federal ,direct     
,,plus ,loan under part ,d of that ,act7
 that the institution recommends for the
 student for the academic period covered
 by the offer1 which shall be made-- 7i7
 with clear use of the word loan to     
describe the recommended loan amounts2  
and  7ii7 with clear labeling of        
subsidized and unsubsidized loans4  7,b7
 ,a disclosure that such loans have to  
be repaid and a disclosure that the     

student can borrow a lesser or1 if      
applicable1 greater amount than the     
recommended loan amount4  7,c7 ,a       
disclosure that the interest rates and  
fees on such loans are set annually and 
affect total cost over time1 and a link 
to a ,department of ,education website  
that includes current information on    
interest rates and fees4  7,d7 ,a link  
to the ,department of ,education's      
repayment calculator website for        
students with instruction that this     
website contains customizable estimates 
of expected repayment costs under       
different loan repayment plans4  7#f7   
,process for accepting or declining aid 
and next steps  7,a7 ,the deadlines and 
a summary of the process 7including the 
next steps7 for-- 7i7 accepting the     
financial aid offered in the financial  
aid offer form2  7ii7 requesting higher 
loan amounts if recommended loan amounts
 were included2 and  7iii7 declining aid
 offered in the form4  7,b7 ,information
 on when and how direct costs to the    

institution must be paid4  7,c7 ,a      
disclosure that verification of         
financial circumstances may require the 
student to submit of further            
documentation4  7,d7 ,information about 
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 ,additional     
information ,any other information the  
,secretary of ,education1 in            
consultation with the heads of relevant 
,federal agencies1 including the        
,secretary of the ,treasury and the     
,director of the ,bureau of ,consumer   
,financial ,protection1 determines      
necessary 7based on the results of the  
consumer testing under paragraph        
7g77#b77 so that students and parents   
can make informed loan borrowing        
decisions1 which may include--  7,a7 the
 most recent cohort default rate1 as    

defined in section #dce7m7 of the       
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajhe7m77 with respect to an  
institution where more than #cj percent 
of enrolled students borrow loans to pay
 for their education1 and a comparison  
to the national average cohort default  
rate2  7,b7 the percentage of students  
at the institution who borrow student   
loans2  7,c7 the median loan debt at    
graduation for students at the          
institution 7clearly marked as including
 only ,federal loans if private loan    
data are not available to be included72 
and  7,d7 the estimated institutional   
charges that the student1 or the        
student's family on behalf of the       
student1 will have to pay directly to   
the institution for the student to      
attend the institution for the academic 
period described in paragraph 7#a77;,b71
 equal to--  7i7 the total direct costs 
as described in paragraph 7#a77;,a77i7  
for the student for the period indicated
 in paragraph 7#a77;,b72 minus  7ii7 the

 amount of grant aid described in       
paragraph 7#b7 that is included on the  
financial aid offer form4  7c7 ,other   
required contents for the offer form    
,the standard form developed under      
subsection 7a7 shall include1 in        
addition to the information described in
 subsection 7b71 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 ,at the institution's discretion-- 
7,a7 additional options and potential   
resources for paying for the amount     
listed in subsection 7b77#c71 such as   
tuition payment plans2 and  7,b7 a      
disclosure that ,federal ,direct ,,plus 
,loans or private education loans may be
 available to cover remaining need1     
except that the institution may not     
include an amount for ,federal ,direct  
,,plus ,loans or private education loans
 and must include a disclosure for      

,federal ,direct ,,plus ,loans that such
 loans are subject to an additional     
application process1 have to be repaid  
by the borrower1 and may not be eligible
 for all the benefits available for     
,federal ,direct ,stafford ,loans or    
,federal ,direct ,unsubsidized ,stafford
 ,loans4  7#b7 ,the following           
information relating to private student 
loans3 7,a7 ,a statement that students  
considering borrowing to cover the cost 
of attendance should consider available 
,federal student loans prior to applying
 for private education loans1 including 
an explanation that ,federal student    
loans offer generally more favorable    
terms and beneficial repayment options  
than private loans4  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 ,a statement explaining the

 student's ability to select a private  
educational lender of the student's     
choice4  7d7 ,additional requirements   
for financial aid offer form ,the       
financial aid offer form shall meet the 
following requirements3 7#a7 ,include1  
in addition to the requirements         
described in subsections 7b7 and 7c71 a 
concise summary1 in plain language1 of--
  7,a7 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 information2
 and  7,b7 ,federal1 ,state1 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  7#b7        
,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#c7 ,use
 standard terminology and definitions1  
as described in subsection 7e77#a7 and  
use plain language where possible4  7#d7
 ,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#e7 ,use the standard offer  
form described in subsection 7e77#b74   
7#f7 ,include the standardized statement
 regarding the possible availability of 
,federal education benefits1 as         
established by the ,secretary in        
accordance with subsection 7e77#c74     
7#g7 ,include a delivery confirmation   

for electronic financial aid offer      
forms1 except that receipt of the       
financial aid offer form shall not be   
considered an acceptance or rejection of
 aid by the student4  7#h7 ,with respect
 to dependent students1 any reference to
 private education loans shall be       
accompanied by-- 7,a7 information about 
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  
income2 and  7,b7 a notification 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  7e7 ,standard information    
established by the ,secretary  7#a7     
,standard terminology ,not later than #c
 months after the date of enactment of  

the ,understanding the ,true ,cost of   
,college ,act of #bjai1 the ,secretary  
of ,education1 in consultation with the 
heads of relevant ,federal agencies1    
including the ,secretary of the         
,treasury and the ,director of the      
,consumer ,financial ,protection        
,bureau1 representatives of institutions
 of higher education1 nonprofit consumer
 groups1 students1 and secondary school 
and higher education guidance           
counselors1 shall establish standard    
terminology and definitions for the     
terms described in subsection 7b74  7#b7
 ,standard form  7,a7 ,in general ,the  
,secretary of ,education shall develop  
multiple draft financial aid offer forms
 for consumer testing1 carry out        
consumer testing for such forms1 and    
establish a finalized standard financial
 aid offer form1 in accordance with the 
process established in subsection 7g7   
and the requirements of this section4   
7,b7 ,separate financial aid offer forms
 ,the ,secretary may develop separate   

financial aid offer forms for--  7i7    
undergraduate students and graduate     
students2 and  7ii7 first-time students 
and returning students4  7#c7           
,additional benefits ,the ,secretary of 
,education1 in consultation with the    
heads of relevant ,federal agencies1    
including the ,secretary of the         
,treasury1 the ,secretary of ,veterans  
,affairs1 the ,secretary of ,defense1   
and the ,director of the ,consumer      
,financial ,protection ,bureau1 shall   
establish standard language notifying   
students that they may be eligible for  
education benefits 7and where students  
can locate more information about such  
benefits71 including benefits in        
accordance with each of the following3  
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  7f7  

,supplemental information2 removal of   
information  7#a7 ,nothing in this      
section shall preclude an institution   
from supplementing the financial aid    
offer form with additional information  
if such additional information          
supplements the financial aid offer form
 and is not located on the financial aid
 offer form1 and provided such          
information utilizes the same standard  
terminology identified in subsection    
7e77#a74  7#b7 ,nothing in this section 
shall preclude an institution from      
deleting a required item if the borrower
 is ineligible for such aid4  7g7       
,development of financial aid offer form
  7#a7 ,draft form ,not later than #i   
months after the date of enactment of   
the ,understanding the ,true ,cost of   
,college ,act of #bjai1 the ,secretary  
of ,education1 in consultation with the 
heads of relevant ,federal agencies1    
including the ,secretary of the         
,treasury and the ,director of the      
,consumer ,financial ,protection        

,bureau1 representatives of institutions
 of higher education1 nonprofit consumer
 groups1 students1 and secondary school 
and higher education guidance           
counselors1 shall design and produce    
multiple draft financial aid offer forms
 for consumer testing with postsecondary
 students or prospective students4 ,in  
developing that form1 the ,secretary    
shall ensure-- 7,a7 that the information
 described in paragraphs 7#a7 through   
7#e7 of subsection 7b7 is in the same   
font1 appears in the same order1 and is 
displayed prominently on the first page 
of the financial aid offer form1 if in  
paper format1 or in a similarly         
prominent place if in electronic format1
 such that none of that information is  
inappropriately omitted or              
de-emphasized2  7,b7 that the other     
information required in subsection 7b7  
appears in a standard format and design 
on the financial aid offer form2 and    
7,c7 that the institution may include a 
logo or brand alongside the title of the

 financial aid offer form4  7#b7        
,consumer testing  7,a7 ,in general ,not
 later than #i months after the date of 
enactment of the ,understanding the     
,true ,cost of ,college ,act of #bjai1  
the ,secretary of ,education1 in        
consultation with the heads of relevant 
,federal agencies1 shall establish a    
process to submit the financial aid     
offer form drafts developed under       
paragraph 7#a7 for consumer testing     
among representatives of students       
7including low-income students1 first   
generation college students1 adult      
students1 veterans1 servicemembers1 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 ,pilot ,during   
such consumer testing1 the ,secretary   
shall ensure that not less than #af and 

not more than #bd eligible institutions 
use the draft forms developed under     
paragraph 7#a71 including institutions--
  7i7 that reflect a proportionate      
representation 7based on the total      
number of students enrolled in          
postsecondary education7 of community   
colleges1 for-profit institutions1      
four-year public institutions1 and      
four-year private nonprofit             
institutions2 and  7ii7 that reflect    
geographic diversity4  7,c7 ,length of  
consumer testing ,the ,secretary of     
,education shall ensure that the        
consumer testing under this paragraph   
lasts no longer than #h months after the
 process for consumer testing is        
developed under subparagraph 7,a74  7#c7
 ,final form  7,a7 ,in general ,the     
results of consumer testing under       
paragraph 7#b7 shall be used in the     
final development of the financial aid  
offer form4  7,b7 ,reporting requirement
 ,not later than #c months after the    
date the consumer testing under         

paragraph 7#b7 concludes1 the ,secretary
 of ,education shall submit to ,congress
 and publish on its website the final   
standard financial aid offer form and a 
report detailing the results of such    
testing1 including whether the          
,secretary of ,education added any      
additional items to the standard        
financial aid offer form pursuant to    
subsection 7b77#h74  7#d7 ,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    
form1 or in subsequent consumer testing4
 ,the ,secretary may also recommend     
additional changes to ,congress4  4  #c4
 ,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 and terms  7a7 ,in general   

,notwithstanding any other provision of 
law1 each institution of higher         
education that receives ,federal        
financial assistance under this ,act    
shall--  7#a7 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 paper1 mobile-optimized       
offers1 or other electronic offers to   
all students who apply for aid and are  
accepted at the institution2 and  7#b7  
use the standard terminology and        
definitions developed by the ,secretary 
of ,education under subsection 7e77#a7  
of that ,act for all communications from
 the institution related to financial   
aid offers4  7b7 ,effective dates ,the  
requirements under this section shall   
take effect at the start of the first   
award year after the ,secretary of      
,education finalizes the standard       
terminology and form developed in       
accordance with section #dhd of the     
,higher ,education ,opportunity ,act    

7#bj ,u4,s4,c4 #ajib note74  4  7c7     
,administrative procedures ,section #dib
 of the ,higher ,education ,act 7#bj    
,u4,s4,c4 #ajih;a7 shall not apply with 
respect to regulations promulgated in   
accordance with this section4  4