,i #aafth ,,congress #ast ,session ,h4 ,r4 #dcdc ,,in ,,the ,,house ,,of ,,representatives ,september #ag1 #bjai,mrs4 ,trahan 7for herself and ,mr4 ,smucker7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to amend the ,higher ,education ,act of #aife to direct the ,secretary of ,education to publish requirements for financial aid offers to be provided by institutions of higher education to enrolled and prospective students1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,financial ,aid ,communication and ,transparency ,act of #bjai or the ,,fact ,act of #bjai4 #b4 ,financial aid offers ,section #dhe of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7 is amended by adding at the end the following3 7n7 ,financial aid offers 7#a7 ,requirements for offers 7,a7 ,secretarial requirements ,not later than #ah months after the date of enactment of the ,financial ,aid ,communication and ,transparency ,act of #bjai the ,secretary shall1 based on the consumer testing conducted under subparagraph 7,e71 publish requirements for financial aid offers that shall-- 7i7 include a requirement that financial aid offers shall serve as the primary source for ,federal1 ,state1 and institutional financial aid information provided by an institution of higher education participating in any program under this title to each prospective student accepted for admission and each enrolled student at such institution2 7ii7 include a requirement that such offers include a standardized quick reference box described in subparagraph 7,d72 7iii7 establish standardized terms and definitions1 including for the elements listed in subparagraph 7,c71 that shall be included in each such offer2 7iv7 establish formatting requirements with respect to the organization of the elements listed in subparagraph 7,c71 which shall include1 at a minimum1 a requirement that prohibits such offers from displaying loans in a manner that indicates or implies that such loans reduce the amount owed to the institution or reduce the net price2 and 7v7 specify the simple1 plain-language1 and consumer-friendly information to be included in each such offer with respect to the financial aid being offered to a student1 which shall include-- 7,i7 an explanation of differences among each such type of financial aid1 including clear explanations that-- 7aa7 grants and scholarships do not have to be repaid2 7bb7 loans 7including loans made under part ,d and private education loans 7as defined in section #adj of the ,truth in ,lending ,act77 must be repaid with interest2 and 7cc7 payments under ,federal work-study programs under part ,c are contingent on finding qualified employment and are typically disbursed incrementally in paychecks2 7,,ii7 information clarifying that students may-- 7aa7 decline to accept a loan made under part ,d2 or 7bb7 accept an amount of such loan that is less than the amount of such loan included in the financial aid offer2 and 7,,iii7 in a case in which the institution offers a student such a loan in an amount that is less than the maximum amount for which the student is eligible1 an explanation that the student is eligible for additional loans under part ,d4 7,b7 ,institutional requirements ,beginning with the award year that begins not less than #a year after the ,secretary publishes requirements under subparagraph 7,a71 each institution of higher education described in subparagraph 7,a77i7 shall provide a financial aid offer to each student described in such subparagraph prior to each academic year that-- 7i7 shall comply with the requirements published by the ,secretary under subparagraph 7,a72 and 7ii7 may be supplemented by the institution with additional1 non-contradictory information related to financial aid as long as such supplementary information uses the standardized terms and definitions described in subparagraph 7,a77iii74 7,c7 ,elements ,a financial aid offer provided by an institution of higher education shall include the following elements with respect to the academic year for which the offer is being provided3 7i7 ,the cost of attendance1 which shall include separately calculated subtotals of-- 7,i7 an itemized list of estimated direct costs owed to the institution2 and 7,,ii7 an itemized list of anticipated student expenses not covered under subclause 7,i74 7ii7 ,federal1 ,state1 and institutional financial aid available to the student1 which shall include separately calculated subtotals of-- 7,i7 grants and scholarships2 7,,ii7 loans made under part ,d 7excluding ,federal ,direct ,parent ,,plus ,loans72 and 7,,iii7 ,federal work-study programs under part ,c and other on-campus employment4 7iii7 ,other options that may be available to students to cover the cost of attendance 7including ,federal ,direct ,parent ,,plus ,loans1 tuition payment plans1 savings1 and earnings from other employment74 7iv7 ,the net price1 which shall be determined by calculating the difference between-- 7,i7 the cost of attendance described in clause 7i72 and 7,,ii7 the grants and scholarships described in clause 7ii77,i74 7v7 ,next step instructions1 including-- 7,i7 the process and deadlines for accepting the financial aid2 and 7,,ii7 information about where to find additional information on the financial aid offered4 7vi7 ,any other information determined necessary by the ,secretary based on the consumer testing conducted under subparagraph 7,e71 which may include the following3 7,i7 ,an estimate of the net direct cost1 which shall be determined by calculating the difference between-- 7aa7 the direct costs owed to the institution described in clause 7i77,i72 and 7bb7 the grants and scholarships described in clause 7ii77,i74 7,,ii7 ,information on average student debt1 loan repayment and default rates1 loan repayment options1 and graduation rates4 7,,iii7 ,in the case of a prospective student1 the process and deadlines for enrolling at the institution4 7,,iv7 ,information regarding the enrollment period covered by the aid offer1 and whether the cost and aid estimates are based on full-time or part-time enrollment4 7,d7 ,standardized quick reference box ,a financial aid offer provided by an institution of higher education shall include a standardized quick reference box to enable students to quickly and easily compare key information on college costs and financial aid-- 7i7 that shall be included in an identical fashion for each student receiving a financial aid offer from the institution on the first page of such offer2 7ii7 the contents and structure of which shall be developed through consumer testing conducted under paragraph 7,e72 and 7iii7 shall include three data elements3 7,i7 ,cost of attendance4 7,,ii7 ,total grants and scholarships offered4 7,,iii7 ,net price4 7,e7 ,consumer testing ,the ,secretary shall-- 7i7 conduct consumer testing that shall serve as the basis in determining the requirements for financial aid offers published under subparagraph 7,a71 which shall include students 7including low-income students1 ,english learners1 first generation college students1 veteran students1 graduate students1 and undergraduate students 7including prospective students and returning students771 students' families 7including low-income families1 families of ,english learners1 and families with first generation college students71 institutions of higher education 7including representatives from two- and four-year institutions1 public and private institutions1 and minority-serving institutions71 secondary school and postsecondary counselors1 financial aid administrators1 nonprofit college access organizations1 and nonprofit consumer groups2 and 7ii7 not later than #fj days after the publication of the requirements under subparagraph 7,a7-- 7,i7 issue a report on the findings of the consumer testing under this subparagraph2 and 7,,ii7 specify ways in which the findings are reflected in such requirements4 7#b7 ,definitions ,in this subsection-- 7,a7 the term cost of attendance has the meaning given the term in section #dgb2 7,b7 the term ,english learner has the meaning given the term in section #haja7bj7 of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja7bj771 except that such term does not include individuals described in subparagraph 7,b7 of such section2 7,c7 the term first generation college student has the meaning given the term in section #djb;,a7h72 7,d7 the term low-income student has the meaning given the term in section #dai,n7b77#g72 and 7,e7 the term minority-serving institution means an institution of higher education described in section #cga7;a74 4