,,ib  ,union ,calendar ,no4 #cid  #aaith
 ,,congress  #b;d ,session  ,h4 ,r4     
#fejb  ,report ,no4 #aai-dfj  ,,in ,,the
 ,,house ,,of ,,representatives         
,december #i1 #bjbe ,mrs4 ,mc,clain 7for
 herself and ,mrs4 ,kim7 introduced the 
following bill2 which was referred to   
the ,committee on ,education and        
,workforce  ,january #ba1 #bjbf         
,additional sponsors3 ,mr4 ,norcross and
 ,mr4 ,vindman  ,january #ba1 #bjbf     
,reported with an amendment1 committed  
to the ,committee of the ,whole ,house  
on the ,state of the ,union1 and ordered
 to be printed ,strike out all after the
 enacting clause and insert the part    
printed in italic ,for text of          
introduced bill1 see copy of bill as    
introduced ,december #i1 #bjbe  ,a      
,,bill  ,to amend the ,higher ,education
 ,act of #aife to require the ,secretary
 of ,education to develop requirements  
for institutions of higher education on 
formatting financial aid offer forms1   
and for other purposes4  #a4 ,short     

title ,this ,act may be cited as the    
,college ,financial ,aid ,clarity ,act  
of #bjbe4  #b4 ,financial aid offers    
7a7 ,in general ,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 ,financial aid offers  7a7        
,institutional requirements  7#a7 ,in   
general ,beginning on ,july #a1 #bjbi1  
an institution of higher education that 
receives ,federal financial assistance  
under this ,act-- 7,a7 shall--  7i7 for 
all financial aid offers 7including     
paper1 or mobile-optimized or other     
electronic offers71 include the         
information 7including terminology7     
listed in subsection 7c71 and meet the  
requirements of paragraphs 7#a7 and 7#b7
 of subsection 7d71 in compliance with  
the requirements published pursuant to  
subsection 7b77#b72  7ii7 provide the   
supplemental content and disclosures    
described in paragraph 7#b72 and  7iii7 
for all communications from the         

institution related to financial aid    
offers 7including the supplemental      
content and disclosures described in    
paragraph 7#b771 use the terminology    
referenced in subsection 7c7 in a       
consistent manner2 and  7,b7 in the case
 of an electronic financial aid offer   
that includes a requirement that a      
student confirm receipt of such offer1  
may not consider such confirmation an   
acceptance or rejection of such offer4  
7#b7 ,supplemental content and          
disclosures ,each institution of higher 
education described in paragraph 7#a7   
shall provide1 in supplemental documents
 or through easily accessible links on  
the institution's portal or a website1  
the following3 7,a7 ,the renewability   
requirements and conditions under which 
the student can expect to receive1 for  
each award year the student is enrolled 
at the institution1 similar amounts of  
financial aid4  7,b7 ,whether the       
financial aid offer may change if aid   
from outside sources is applied after   

the student receives the initial        
financial aid offer1 and1 if applicable1
 how that financial aid offer will      
change4  7,c7 ,if loans made under part 
,d of title ,,iv or other education     
loans offered through ,federal programs 
are included--  7i7 a disclosure that   
the interest rates and fees on such     
loans are set annually and affect total 
cost over time2  7ii7 a link to any     
website that includes current           
information on interest rates and fees2 
and  7iii7 a disclosure that such loans 
have to be repaid and the student can   
borrow an amount less than the offered  
loan amount4  7,d7 ,a link to the       
,college ,financing ,plan website of the
 ,department 7or a successor website74  
7b7 ,secretarial requirements  7#a7     
,requirements for institutions of higher
 education  7,a7 ,consumer testing ,the 
,secretary shall-- 7i7 in consultation  
with the heads of relevant ,federal     
agencies1 not later than #i months after
 the date of enactment of the ,college  

,financial ,aid ,clarity ,act of #bjbe1 
establish a process for consumer        
testing1 with the representatives       
described in subparagraph 7,b71         
requirements for institutions of higher 
education on formatting financial aid   
offers to include the information       
7including terminology7 listed in       
subsection 7c71 and to meet the         
requirements of paragraphs 7#a7 and 7#b7
 of subsection 7d71 in a manner that is 
simple and understandable for students  
and the students' families2 and  7ii7   
not later than #h months after the      
process for consumer testing is         
established pursuant to clause 7i71     
conduct and conclude such consumer      
testing4  7,b7 ,representatives ,the    
representatives described in this       
subparagraph are 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 nonprofit organizations     
7including scholarship-granting         
organizations71 private lenders1 and    
,states4  7,c7 ,nonapplication of       
paperwork reduction act ,subchapter ,i  
of chapter #ce of title #dd1 ,united    
,states ,code1 shall not apply to the   
consumer testing process under this     
subsection4  7#b7 ,publication and      
notice ,not later than ,july #a1 #bjbh1 
the ,secretary shall--  7,a7 publish the
 requirements developed pursuant to     
paragraph 7#a77;,a7 on a publicly       
available website2 and  7,b7 notify each
 institution of higher education that   
receives ,federal financial assistance  
under this ,act of such requirements and
 the requirements of subsection 7a74    
7#c7 ,sample of financial aid offers    
,not later than ,july #a1 #bjbi1 and    

every other year thereafter1 the        
,secretary shall1 in a manner consistent
 with applicable ,federal privacy       
statutes-- 7,a7 collect a random        
representative sample of financial aid  
offers made by institutions for the most
 recent award year2 and  7,b7 review    
such offers for compliance with the     
requirements of subsection              
7a77#a77;,a77i74  7c7 ,information      
required ,to comply with subsection 7a71
 an institution of higher education     
shall include the following information 
in any financial aid offer that is made 
by the institution3  7#a7 ,information  
for the award year covered by the offer 
7,a7 ,award year information ,the       
program of study and the award year of  
such program of study covered by the    
financial aid offer1 and an explanation 
that the amount of financial aid offered
 may differ-- 7i7 for academic periods  
not covered by the financial aid offer1 
such as a summer term or future award   
year2 and  7ii7 by program of study4    

7,b7 ,annual cost information           
,information on the student's estimated 
cost of attendance for the award year   
covered by the financial aid offer1     
including the following3  7i7 ,the      
required costs for such award year1     
including the academic workload used to 
determined such required costs4  7ii7   
,the cost of attendance for such award  
year4  7iii7 ,an indication1 as         
applicable1 about whether any of the    
items used to calculate the required    
costs included in clause 7i7 are-- 7,i7 
estimated based on the previous year2 or
  7,,ii7 set for the award year covered 
by the financial aid offer4  7,c7       
,annual ,grants and scholarships ,the   
amount of grant and scholarship aid for 
the award year covered by the financial 
aid offer4  7,d7 ,annual net price  7i7 
,annual net price for completion ,the   
annual net price for completion for the 
award year covered by the financial aid 
offer1 and a disclosure that such amount
 is an estimate4  7ii7 ,annual net price

 of attendance ,the annual net price of 
attendance for the award year covered by
 the financial aid offer1 and a         
disclosure that such amount--  7,i7     
includes costs that are not required    
costs2 and  7,,ii7 is an estimate4  7,e7
 ,loans ,information on each loan for   
which the student is eligible for the   
award year covered by the offer         
7including any institutional1 ,federal1 
,state1 or private loan71 including--   
7i7 with respect to each such loan--    
7,i7 the total amount offered to the    
student2  7,,ii7 any applicable interest
 rate1 including information on         
circumstances in which interest may be  
capitalized on the loan1 and any        
applicable fees 7including origination  
fees and additional costs72 and  7,,iii7
 information on any applicable loan     
repayment assistance offered by the     
institution2  7ii7 a disclosure that the
 interest rates and fees on such loans  
can affect total cost over time2  7iii7 
a disclosure that such loans have to be 

repaid2 and  7iv7 a disclosure that the 
student can borrow an amount less than  
the offered loan amount4  7#b7 ,grants  
and scholarships for the program length 
,the amount of grant and scholarship aid
 for the program length of the program  
of study for which the financial aid    
offer is provided4  7#c7 ,student       
employment ,information on work-study   
employment opportunities 7including     
work-study programs under part ,c of    
title ,,iv1 institutional work-study    
programs1 or ,state work-study          
programs71 including--  7,a7 the maximum
 annual amount the student may earn     
through such an employment opportunity2 
and  7,b7 a disclosure that any amounts 
received pursuant to such an employment 
opportunity may be--  7i7 subject to the
 availability of qualified employment   
opportunities upon enrollment2 and  7ii7
 disbursed over time as earned by the   
student4  7#d7 ,net price calculator ,a 
link to the universal net price         
calculator website described in section 

#acb7;c77#d74  7#e7 ,average costs for  
the most recent award year  7,a7 ,in    
general ,with respect to a program of   
study for which the financial aid offer 
is provided--  7i7 for the most recent  
award year for which data is available--
 7,i7 the average annual net price      
required for completion2 and  7,,ii7 the
 average annual price of attendance2 and
  7ii7 with respect to students who     
completed a credential for the program  
of study during the most recent award   
year--  7,i7 the average total net price
 required for completion based on the   
time to credential for the program of   
study2 and  7,,ii7 the average total net
 price of attendance based on the time  
to credential for the program of study4 
7,b7 ,disclosure ,a disclosure that the 
information provided in subparagraph    
7,a7 is based on the required costs and 
amounts of grant and scholarship aid    
applicable to other students for the    
most recent award year1 and such        
information may not be applicable to the

 student receiving the financial aid    
offer4  7#f7 ,process for accepting1    
adjusting1 or declining aid and next    
steps  7,a7 ,deadlines ,the deadlines   
and a summary of the process 7including 
the next steps7 for-- 7i7 accepting the 
financial aid offered2  7ii7 adjusting  
the amount of aid offered2 and  7iii7   
declining the aid offered4  7,b7        
,payment ,information on when and how   
costs described in paragraph 7#a77;,b7  
must be paid4  7,c7 ,disclosure ,a      
disclosure that verification of         
information provided on the ,free       
,application for ,federal ,student ,aid 
may require the student to submit       
further documentation4  7,d7 ,financial 
aid information ,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 a
 link to the ,department of ,education's
 student financial aid website4  7,e7   

,college costs and student outcome      
information ,information about where a  
student or a student's family can seek  
additional information on college costs 
and student outcomes1 including a link  
to the ,department of ,education's      
,college ,scorecard website 7or a       
successor website7 and how to use such  
website to compare information from     
institutions of higher education        
regarding such costs and outcomes4  7d7 
,format requirements  7#a7 ,in general  
,to comply with subsection 7a71 any     
financial aid offer made by an          
institution of higher education shall be
 titled ,financial ,aid ,offer1 use     
plain language wherever possible1 and   
format the information listed in        
subsection 7c7 in accordance with       
paragraph 7#b74  7#b7 ,format of        
required information ,the information   
listed in subsection 7c7 shall be       
formatted in a financial aid offer made 
by an institution of higher education as
 follows3  7,a7 ,the information        

required in subparagraphs 7,a7 through  
7,e7 of subsection 7c77#a7 is listed in 
such order1 under separate headings1 and
 in the same font4  7,b7 ,there is a    
clear distinction between the required  
costs and any other costs of attendance 
included in such financial aid offer4   
7,c7 ,there is a clear distinction      
between the aid offered under           
subparagraphs 7,c7 and 7,e7 of          
subsection 7c77#a71 including-- 7i7 by  
not combining the different types of aid
 described in such paragraphs2 and  7ii7
 in such subparagraph 7,e7-- 7,i7 by    
using the word loan to clearly describe 
the recommended loan amounts2 and       
7,,ii7 by clearly distinguishing between
 subsidized and unsubsidized loans4     
7,d7 ,the terminology referenced in     
subsection 7c7 is used in a consistent  
manner4  7,e7 ,such information is      
listed-- 7i7 in a manner that ensures   
none of the information is              
inappropriately omitted or deemphasized2
 and  7ii7 in a consistent format for   

all financial aid offers made by such   
institution4  7e7 ,definitions ,in this 
section3  7#a7 ,required costs ,the term
 required costs means the sum of all the
 items listed in section #dgb7;a7 that  
are required by an institution of higher
 education for a program of study for   
the program length of a program of      
study1 for the time to credential for a 
student1 or for an award year of a      
program of study1 as applicable1        
including-- 7,a7 the tuition and fees   
normally assessed a student enrolled in 
such program of study carrying the same 
academic workload1 as determined by the 
institution2 and  7,b7 in a case in     
which the institution requires a student
 to reside in institutionally owned or  
operated housing or to use              
institutionally owned or operated food  
services1 the applicable standard       
allowance for such housing or food      
services determined by the institution  
in accordance with section #dgb7;a77#e74
  7#b7 ,amount of grant and scholarship 

aid ,the term amount of grant and       
scholarship aid means the sum of all of 
the grant and scholarship aid that is   
available to the student for the program
 length of a program of study1 for the  
time to credential for a student1 or for
 an award year of a program of study1 as
 applicable1 that a student does not    
have to repay1 including need-based1    
merit-based1 or athletic-based1 or      
another type of grant and scholarship   
aid1 that is--  7,a7 offered under title
 ,,iv2  7,b7 offered through other      
,federal programs2  7,c7 offered by the 
institution2  7,d7 offered by a ,state2 
or  7,e7 offered by any other source4   
7#c7 ,net price required for completion 
7,a7 ,total net price required for      
completion ,the term total net price    
required for completion means1 with     
respect to a student in a program of    
study--  7i7 the required costs charged 
to such student for the program of study
 for the time to credential2 minus  7ii7
 the amount of grant and scholarship aid

 that is available to the student for   
such program for the time to credential4
  7,b7 ,annual net price required for   
completion ,the term annual net price   
required for completion means1 with     
respect to a student in a program of    
study-- 7i7 the required costs charged  
to such student for the program of study
 for an award year2 minus  7ii7 the     
amount of grant and scholarship aid that
 is available to the student for such   
program for such award year4  7#d7 ,net 
price of attendance  7,a7 ,total net    
price of attendance ,the term total net 
price of attendance means1 with respect 
to a student in a program of study1 the 
sum of--  7i7 the total net price       
required for completion2 and  7ii7 the  
sum1 for the time to credential of the  
program of study1 of all the costs      
listed in section #dgb7;a7 that are not 
required costs4  7,b7 ,annual net price 
of attendance ,the term annual net price
 of attendance means1 with respect to a 
student in a program of study1 the sum  

of the annual net price required for    
completion for an award year and the    
costs listed in section #dgb7;a7 that   
are not required costs for such award   
year4  7#e7 ,program of study  7,a7 ,in 
general ,the term program of study--    
7i7 means an eligible program at an     
institution of higher education that is 
classified by a combination of-- 7,i7   
one or more ,,cip codes2 and  7,,ii7 one
 credential level1 determined by the    
credential awarded upon completion of   
the program2 and  7ii7 does not include 
a program of study abroad4  7,b7 ,cip   
code ,the term ,,cip code means the     
six-digit taxonomic identification code 
assigned by an institution of higher    
education to a specific program of study
 at the institution1 determined by the  
institution of higher education in      
accordance with the ,classification of  
,instructional ,programs published by   
the ,national ,center for ,education    
,statistics4  7,c7 ,credential level    
7i7 ,in general ,the term credential    

level means the level of the degree or  
other credential awarded by an          
institution of higher education to      
students who complete a program of study
 of the institution4 ,each degree or    
other credential awarded by an          
institution shall be categorized by the 
institution as either undergraduate     
credential level or graduate credential 
level4  7ii7 ,undergraduate credential  
,when used with respect to a credential 
or credential level1 the term           
undergraduate credential includes       
credentials such as an undergraduate    
certificate1 an associate degree1 a     
bachelor's degree1 and a                
post-baccalaureate certificate          
7including the coursework specified in  
paragraphs 7#c77;,b7 and 7#d77;,b7 of   
section #dhd7;b774  7iii7 ,graduate     
credential ,when used with respect to a 
credential or credential level1 the term
 graduate credential includes           
credentials such as a master's degree1 a
 doctoral degree1 a professional degree 

7as defined under section #ffh4b of     
title #cd1 ,code of ,federal            
,regulations71 and a postgraduate       
certificate4  7#f7 ,program length ,the 
term program length means the minimum   
amount of time in weeks1 months1 or     
years that is specified in the catalog1 
marketing materials1 or other official  
publications of an institution of higher
 education for a full-time student to   
complete the requirements to obtain the 
degree or credential awarded for a      
specific program of study4  7#g7 ,time  
to credential ,the term #8time to       
credential' means1 with respect to a    
student1 the actual amount of time in   
weeks1 months1 or years it takes the    
student to complete the requirements to 
obtain the degree or credential awarded 
for a specific program of study4  7#h7  
,cost of attendance ,the term cost of   
attendance has the meaning given such   
term in section #dgb4  4  7b7 ,program  
participation agreement ,section        
#dhg7;a7 of the ,higher ,education ,act 

of #aife 7#bj ,u4,s4,c4 #ajid7;a77 is   
amended by adding at the end the        
following3  7#cj7 ,the institution will 
comply with the requirements of section 
#abd7;a74  4  7c7 ,cost of attendance of
 a program of study  7#a7 ,determination
 of cost of attendance of a program of  
study ,section #dgb7;a7 of the ,higher  
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhgll7a77 is amended--  7,a7 in       
paragraph 7#a71 by striking carrying the
 same academic workload and inserting   
enrolled in the same program of study   
and carrying the same academic workload2
  7,b7 in paragraph 7#b71 by striking   
same course of study and inserting same 
program of study2 and  7,c7 in paragraph
 7#ad71 by striking program and         
inserting program of study4  7#b7       
,disclosure ,section #dgb7;c7 of the    
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajhgll7c77 is amended--  7,a7
 by inserting of each program of study  
at the institution after cost of        
attendance2 and  7,b7 by striking of the

 institution and inserting of such      
programs of study at the institution4   
,january #ba1 #bjbf ,reported with an   
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed