,,ii #aaith ,,congress #b;d ,session ,s4 #ddce ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bi1 #bjbf,mr4 ,cassidy 7for himself and ,mr4 ,grassley7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to establish requirements for financial aid offers made by institutions of higher education1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,improving ,financial ,aid ,offers for ,students ,act4 #b4 ,financial aid offer requirements ,section #dhd of the ,higher ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajib note7 is amended to read as follows3 #dhd4 ,financial aid offer requirements 7a7 ,financial aid offer ,in this section1 the term financial aid offer means a document or electronic notification that is provided or made available by a postsecondary educational institution to a student 7or prospective student7 that outlines the amounts and details of the financial aid being offered to the student 7or prospective student71 which may include scholarships1 grants1 loans1 employment1 or other forms of financial assistance1 to pay for expenses related to attending the institution4 7b7 ,standard terminology and model form ,the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies and in accordance with subsections 7g7 and 7h71 shall develop standard terminology and a model form for financial aid offers based on recommendations from representatives of students1 veterans1 servicemembers1 students' families1 institutions of higher education 7including #b-year public institutions1 #b-year private nonprofit institutions1 for-profit institutions1 #d-year public institutions1 and #d-year private nonprofit institutions71 higher education associations1 financial aid experts1 financial aid administrators1 secondary school and postsecondary counselors1 college access professionals1 nonprofit organizations1 and consumer groups4 ,such model form shall meet the requirements of subsections 7c7 and 7d7 and use the standard terminology developed pursuant to subsection 7g77#a74 7c7 ,key required contents for aid offer ,an institution of higher education receiving ,federal financial assistance under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 shall use a financial aid offer that includes the following items in a consumer-friendly manner that is simple and understandable1 with costs listed first1 followed by grants and scholarships1 and with each of the following categories of information clearly separated from each other with separate headings3 7#a7 ,cost information 7,a7 ,in general ,information on the student's estimated cost of attendance1 including the following3 7i7 ,direct costs ,the total cost of all items described in section #dgb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgll7 that are billed to the student by the institution or otherwise required by the institution for enrollment1 including such total cost disaggregated by the cost of each such item1 including1 as determined under such section-- 7,i7 tuition and fees 7and other required expenses72 and 7,,ii7 housing and food for a student participating in institutionally owned or operated food services or institutionally owned or operated housing4 7ii7 ,indirect costs ,the total cost of all items described in section #dgb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgll7 that are not billed to the student by the institution or otherwise required by the institution for enrollment1 including such total cost disaggregated by the cost of each such item1 including1 as determined under such section-- 7,i7 the component totals each for housing and food costs for students who reside off campus or off campus with family2 7,,ii7 books1 supplies1 equipment1 course materials1 and rental or purchase of a personal computer 7if such expenses are not charged with tuition and fees72 and 7,,iii7 transportation4 7,b7 ,academic period ,the academic period covered by the financial aid offer1 and an explanation that the amount of financial aid offered may change-- 7i7 for academic periods not covered by the financial aid offer2 or 7ii7 by program4 7,c7 ,enrollment status ,an indication of whether cost and aid estimates are based on full-time or part-time enrollment4 7,d7 ,estimated or set ,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 ,grants and scholarships ,the aggregate amount of grants and scholarships1 differentiated by source1 that the student does not have to repay1 such as grant aid offered under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 and grant aid offered through other ,federal programs1 grant and scholarship aid offered by the institution1 grant and scholarship aid offered by the ,state1 and1 if known1 grant and scholarship aid from an outside source to the student for such academic period1 including-- 7,a7 a disclosure that the grants and scholarships do 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 financial aid offer and1 to the extent practicable1 how that aid may change4 7#c7 ,net price 7,a7 ,in general ,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 and scholarship aid described in paragraph 7#b7 that is included in the financial aid offer4 7,b7 ,disclosure ,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 ,loans 7,a7 ,in general ,information on any loan under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a 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 financial aid 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 ,disclosure on repayment ,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 ,disclosure on interest rates and fees ,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 ,link to repayment calculator ,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#e7 ,process for accepting1 adjusting1 or declining aid and next steps 7,a7 ,in general ,the deadlines and a summary of the process 7including the next steps7 for-- 7i7 accepting the financial aid offered2 7ii7 adjusting the amount of financial aid offered2 and 7iii7 declining the financial aid offered4 7,b7 ,information on paying costs ,information on when and how costs described in paragraph 7#a77;,a77i7 must be paid1 including a clear indication of whether such cost is required or optional for the student4 7,c7 ,disclosure on verification of information ,a disclosure that verification of information provided on the ,free ,application for ,federal ,student ,aid1 or other applicable financial aid applications1 may require the student to submit further documentation4 7,d7 ,contact 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 the ,department of ,education's website on financial aid4 7d7 ,optional contents for financial aid offer ,a financial aid offer made by an institution of higher education receiving ,federal financial assistance under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 may include1 at the institution's discretion1 the information described in paragraphs 7#a71 7#b71 or 7#c74 ,if an institution does include information described in paragraph 7#a71 7#b71 or 7#c71 such information shall meet the requirements of the applicable paragraphs4 7#a7 ,additional options ,any of the following1 which1 if included1 shall comply with the requirements of this paragraph3 7,a7 ,additional options and potential resources for paying for the amount listed in subsection 7c77#c71 such as tuition payment plans and the terms and conditions of those plans4 7,b7 ,a disclosure that ,federal ,direct ,,plus ,loans made under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq471 private education loans1 or other financing products may be available to cover remaining need1 except that-- 7i7 the institution may not include an amount for such ,federal ,direct ,,plus ,loans1 private education loans1 or other financing products1 except as part of a revised or updated offer provided after such loan or financing product has been requested by the student or parent and approved or certified2 7ii7 if a ,federal ,direct ,,plus ,loan1 private education loan1 or other financing product amount is included in accordance with clause 7i71 the institution shall not represent the amount of such a loan or financing product in a manner in which that amount is commingled with the amount of other forms of financial assistance1 such as those described in paragraphs 7#b7 and 7#d7 of subsection 7c72 and 7iii7 the institution shall include a disclosure that such loans and agreements-- 7,i7 are subject to an additional application process and have to be repaid by the borrower2 and 7,,ii7 may not be eligible for all the benefits available for ,federal ,direct ,stafford ,loans or ,federal ,direct ,unsubsidized ,stafford ,loans4 7,c7 ,information about the net bill1 which-- 7i7 is defined as the amount the student1 or the student's family on behalf of the student1 is estimated to have to pay directly to the institution for the academic period1 equal to-- 7,i7 the direct costs of attending the covered institution as described in subsection 7c77#a77;,a77i72 minus 7,,ii7 the amount of grant and scholarship aid described in subsection 7c77#b7 that is included in the financial aid offer2 and 7ii7 shall include a clear explanation of how this net bill amount differs from the net price amount described in subsection 7c77#c74 7#b7 ,information on private education loans and other financing products ,information relating to private education loans and other financing products1 which1 if included1 shall contain the following3 7,a7 ,a disclosure that students considering borrowing to cover the cost of attendance should consider available ,federal student loans and compare the terms and repayment options prior to accepting private education loans or other financing products1 including an explanation that ,federal student loans generally offer more flexible repayment and forgiveness options than private education loans and other financing products4 7,b7 ,the impact of a proposed private education loan or other financing product 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 or other financing product provider of the student's choice4 7#c7 ,student employment ,information on work-study employment opportunities offered in accordance with part ,c of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg-ea et seq471 institutional work-study programs1 or ,state work-study programs1 which1 if included shall contain the following3 7,a7 ,the maximum annual amount the student may earn through the program4 7,b7 ,a disclosure that any work-study amount offered may be-- 7i7 subject to the availability of qualified employment opportunities upon the student's enrollment2 and 7ii7 disbursed over time as earned by the student4 7e7 ,additional requirements for financial aid offers ,each financial aid offer made by an institution of higher education receiving ,federal financial assistance under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 shall meet the following requirements3 7#a7 ,the financial aid offer shall include1 in addition to the requirements described in subsection 7c71 a concise summary1 in plain language1 of-- 7,a7 the terms and conditions of financial aid recommended under paragraphs 7#b7 and 7#d7 of subsection 7c7 7and subsection 7d77#c71 if included71 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 ,the financial aid offer shall clearly distinguish between the aid offered under subsection 7c77#b71 subsection 7c77#d71 and subsection 7d77#c7 7if included71 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 ,the financial aid offer shall use standard terminology and definitions1 as described in subsection 7g77#a7 and use plain language where possible4 7#d7 ,if an institution's recommended ,federal student loan aid offered in subsection 7c77#d7 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 web page4 7#e7 ,the financial aid offer shall include the standardized statement regarding the possible availability of ,federal education benefits1 as established by the ,secretary in accordance with subsection 7g77#b74 7#f7 ,with respect to dependent students1 any reference to private education loans in the financial aid offer shall be accompanied by-- 7,a7 information about the availability of1 and terms and conditions associated with1 ,federal ,direct ,,plus ,loans under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 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 part ,d of such title if the student's parents are not able to borrow under the ,federal ,direct ,,plus ,loan program under part ,d of such title4 7#g7 ,the financial aid offer shall include an explanation of how the indirect costs included in the financial aid offer pursuant to subsection 7c77#a77;,a77ii7 are estimated1 and a disclosure that the student's actual costs for these items may differ from the estimated costs4 7#h7 ,the financial aid offer shall not include any net price information except cost of attendance information in accordance with subsection 7c77#a71 net price information in accordance with subsection 7c77#c71 or 7as applicable7 net bill information in accordance with subsection 7d77#a77;,c74 7#i7 ,the financial aid offer shall not be titled or otherwise referred to as an award4 7f7 ,supplemental information2 removal of information 7#a7 ,supplemental information ,nothing in this section shall preclude an institution of higher education receiving ,federal financial assistance under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 from supplementing the financial aid offer with additional information if such additional information utilizes the same standard terminology identified in subsection 7g77#a7 and does not misrepresent costs1 financial aid offered1 or net price4 7#b7 ,removal of information ,nothing in this section shall preclude an institution from deleting a required item on a financial aid offer if-- 7,a7 the student is ineligible for such item2 7,b7 the institution does not participate in the program related to such item2 or 7,c7 the cost of attendance item is not applicable to the student4 7g7 ,standard terminology and definitions2 additional benefits 7#a7 ,standard terminology and definitions ,not later than #i months after the date of enactment of the ,improving ,financial ,aid ,offers for ,students ,act1 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 and the individuals and entities described in subsection 7b71 shall establish standard terminology and definitions for the terms described in subsections 7c7 and 7d74 7#b7 ,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 benefits7 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 7#c7 ,authority to ,modify ,the ,secretary of ,education may modify the standard terminology and definitions for the terms described in subsections 7c7 and 7d7 if such modifications are made after consultation with the individuals and entities described in subsection 7b7 and are issued not less than #ab months before the ,free ,application for ,federal ,student ,aid for the affected award year first becomes available4 7h7 ,development of model financial aid offer form 7#a7 ,model 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 model financial aid offer form1 in accordance with the process established under this subsection and the requirements of this section4 7,b7 ,separate financial aid offer forms ,the ,secretary may develop separate model financial aid offer forms for-- 7i7 undergraduate students and graduate students2 and 7ii7 first-time students and returning students4 7#b7 ,draft model form ,not later than #a year after the date of enactment of the ,improving ,financial ,aid ,offers for ,students ,act1 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 and the individuals and entities described in subsection 7b71 shall design and produce multiple draft financial aid offer forms for consumer testing with postsecondary students or prospective students4 ,in developing those forms1 the ,secretary shall ensure-- 7,a7 that the headings described in paragraphs 7#a7 through 7#d7 of subsection 7c7 are in the same font1 appear in the same order1 and are displayed prominently on the financial aid offer form1 such that none of that information is inappropriately omitted or de-emphasized2 7,b7 that the other information required in subsection 7c7 appears in a standard format and design on the financial aid offer2 and 7,c7 that the institution may include a logo or brand alongside the title of the financial aid offer4 7#c7 ,consumer testing 7,a7 ,in general ,not later than #a year after the date of enactment of the ,improving ,financial ,aid ,offers for ,students ,act1 the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies1 shall establish a process for consumer testing of the draft model forms developed under paragraph 7#b7 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 may conduct a pilot in which eligible institutions1 on a voluntary basis1 use the draft forms developed under paragraph 7#b74 7,c7 ,length of consumer testing ,the ,secretary of ,education shall ensure that the consumer testing under this paragraph lasts no longer than #a year after the process for consumer testing is developed under subparagraph 7,a74 7#d7 ,final model form 7,a7 ,in general ,the results of consumer testing under paragraph 7#c7 shall be used in the final development of the model financial aid offer form4 7,b7 ,reporting requirement ,not later than #c months after the date the consumer testing under paragraph 7#c7 concludes1 the ,secretary of ,education shall submit to ,congress and publish on its website the final model 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 model financial aid offer4 7#e7 ,authority to modify ,the ,secretary of ,education may modify or remove the definitions1 terms1 formatting1 or design of the model financial aid offer form based on the results of consumer testing required under this subsection and before finalizing the model form1 or in subsequent consumer testing4 ,the ,secretary may also recommend additional changes to ,congress4 4 #c4 ,mandatory use of terms2 financial aid offer form requirements 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 ,use of mandatory financial aid offer terms 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 standard terminology and definitions developed by the ,secretary of ,education under subsection 7g77#a7 of section #dhd of the ,higher ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajib note7 for all communications from the institution related to financial aid offers 7as defined in subsection 7a7 of such section71 regardless of whether such communications are electronic1 written1 or through another medium4 7b7 ,effective date ,the requirements under this section shall take effect on the first date on which the ,secretary releases the ,free ,application for ,federal ,student ,aid for the applicable award year associated with that application1 that occurs later than #a year after the ,secretary of ,education finalizes the standard terminology and model form developed in accordance with section #dhd of the ,higher ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajib note74 7c7 ,administrative procedures ,section #dib shall not apply with respect to regulations promulgated in accordance with this section4 #abe4 ,requirements for financial aid offer forms 7a7 ,in ,general ,beginning on ,july #a following the effective date of section #abd1 and annually thereafter1 each institution of higher education that receives ,federal financial assistance under this ,act shall submit to the ,secretary a template of the form 7without any student data7 that the institution uses for financial aid offers 7as defined in section #dhd7;a7 of the ,higher ,education ,opportunity ,act7 to enrolled and prospective students4 ,institutions that use electronic systems to communicate financial aid offers may submit digital representations 7such as screenshots7 of those systems4 7b7 ,forms ,such institutions shall-- 7#a7 use the model financial aid offer form developed pursuant to section #dhd7;h7 of the ,higher ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajib note72 or 7#b7 use the institution's own form for financial aid offers if that form meets the requirements of subsections 7c71 7d71 and 7e7 of such section and uses the required terminology and definitions in accordance with section #abd4 7c7 ,public availability ,the ,secretary shall make each template received under this section publicly available4 4 7b7 ,financial aid offer compliance ,section #dhe7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7;a77 is amended by adding at the end the following3 7#h7 ,each eligible institution participating in any program under this title shall ensure that any financial aid offer 7as defined in section #dhd7;a7 of the ,higher ,education ,opportunity ,act7 communicated to a prospective or enrolled student complies with the requirements of sections #abd and #abe4 4 #d4 ,,gao study ,not later than #a year after the date on which the financial aid offer form templates of institutions of higher education are submitted to the ,secretary of ,education in accordance with section #abe of the ,higher ,education ,act of #aife1 as added by section #c of this ,act1 the ,comptroller ,general of the ,united ,states shall prepare and submit to ,congress1 and make publicly available1 an initial study of such financial aid offer form templates1 and #c years after the initial study is submitted to ,congress1 the ,comptroller ,general shall submit a final study examining such templates4 ,both studies shall include recommendations about how to improve such templates1 as appropriate4 ,additional studies of such financial aid offer form templates may be conducted1 as determined necessary by the ,comptroller ,general or the ,chair or ,ranking ,member of the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate or the ,committee on ,education and ,workforce of the ,house of ,representatives4 #e4 ,rules of construction 7a7 ,no authorization for approval or mandated forms ,nothing in this ,act1 or the amendments made by this ,act1 shall be construed to authorize the ,secretary of ,education to-- 7#a7 require that a postsecondary educational institution receive approval from the ,department of ,education1 or any other ,federal agency1 for the institution's financial aid offer2 or 7#b7 regulate or require a mandated standard financial aid offer4 7b7 ,additional resources ,any requirements in this ,act1 and the amendments made by this ,act1 for a financial aid offer to contain certain information may be satisfied through the inclusion of specific and relevant website links or additional resources that contain such information1 provided that the dollar amounts of direct and indirect costs 7as described in paragraph 7#a7 of subsection 7c7 of section #dhd of the ,higher ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajib note771 grants and scholarships 7as described in paragraph 7#b7 of such subsection71 and net price 7as described in paragraph 7#c7 of such subsection7 are stated in the financial aid offer4