II 

115TH CONGRESS 

1ST SESSION S. 888 

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 1965 to make such form mandatory. 

IN THE SENATE OF THE UNITED STATES 

APRIL 7, 2017 

Mr. GRASSLEY (for himself and Mr. FRANKEN) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, 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 

1965 to make such form mandatory. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Understanding the 

5 True Cost of College Act of 2017’’. 


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1 SEC. 2. INSTITUTION FINANCIAL AID OFFER FORM. 

2 (a) INSTITUTION FINANCIAL AID OFFER FORM.— 

3 Section 484 of the Higher Education Opportunity Act (20 

4 U.S.C. 1092 note) is amended— 

5 (1) by striking subsection (a) and inserting the 

6 following: 

7 ‘‘(a) STANDARD FORMAT.—The Secretary of Edu8 cation, in consultation with the heads of relevant Federal 

9 agencies, shall develop a standard format for financial aid 

10 offer forms based on recommendations from representa11 tives of students, students’ families, institutions of higher 

12 education, secondary school and postsecondary counselors, 

13 and nonprofit consumer groups.’’; 

14 (2) by striking subsection (b) and inserting the 

15 following: 

16 ‘‘(b) KEY REQUIRED CONTENTS FOR OFFER

17 FORM.—The standard format developed under subsection 

18 (a) shall include, in a consumer-friendly manner that is 

19 simple and understandable, the following items clearly sep20 arated from each other and listed on the first page of the 

21 financial aid offer form in either electronic or written for22 mat: 

23 ‘‘(1) Information on the student’s cost of at24 tendance, which denotes figures that are estimates 

25 with a disclaimer that actual costs may depend on 

26 decisions made by the student, based on the most 


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1 current costs for the academic period covered by the 

2 financial aid offer form, including the following: 

3 ‘‘(A) Tuition and fees, as determined 

4 under section 472 of the Higher Education Act 

5 of 1965 (20 U.S.C. 1087ll). 

6 ‘‘(B) Room and board costs, as determined 

7 under section 472 of the Higher Education Act 

8 of 1965 (20 U.S.C. 1087ll). 

9 ‘‘(C) Books and supplies, as determined 

10 under section 472 of the Higher Education Act 

11 of 1965 (20 U.S.C. 1087ll). 

12 ‘‘(D) Transportation, as determined under 

13 section 472 of the Higher Education Act of 

14 1965 (20 U.S.C. 1087ll). 

15 ‘‘(E) Miscellaneous personal expenses, as 

16 determined under section 472 of the Higher 

17 Education Act of 1965 (20 U.S.C. 1087ll). 

18 ‘‘(2) The amount of financial aid that the stu19 dent does not have to repay, such as scholarships, 

20 grant aid offered under title IV of the Higher Edu21 cation Act of 1965 (20 U.S.C. 1070 et seq.), grant 

22 aid offered through other Federal programs, or 

23 grant aid offered by the institution, a State, or an 

24 outside source to the student for such academic pe25 riod, including a disclosure that the financial aid 


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1 does not have to be repaid and whether the student 

2 can expect to receive similar amounts of such finan3 cial aid for each academic period the student is en4 rolled at the institution. 

5 ‘‘(3) The net price that the student, or the stu6 dent’s family on behalf of the student, is estimated 

7 to have to pay for the student to attend the institu8 tion for such academic period, with a disclaimer that 

9 actual costs for some items may depend on decisions 

10 by the student, equal to— 

11 ‘‘(A) the cost of attendance as described in 

12 paragraph (1) for the student for such aca13 demic period, minus 

14 ‘‘(B) the amount of grant aid described in 

15 paragraph (2) that is included in the financial 

16 aid offer form. 

17 ‘‘(4) Work study assistance, including a disclo18 sure that the aid must be earned by the student and 

19 a disclosure that the assistance offered is subject to 

20 the availability of employment opportunities. 

21 ‘‘(5) The types and amounts of loans under 

22 part D or E of title IV of the Higher Education Act 

23 of 1965 (20 U.S.C. 1087a et seq., 1087aa et seq.) 

24 that the institution recommends for the student for 

25 such academic period, a disclosure that such loans 


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1 have to be repaid, a disclosure that the student can 

2 borrow a lesser amount than the recommended loan 

3 amount, a clear use of the word ‘loan’ to describe 

4 the recommended loan amounts, the interest rates, 

5 fees, the expected monthly repayment amounts (as6 suming a 10-year repayment plan and normal time 

7 for completion of, or graduation from, the student’s 

8 program of study), the total amount the student will 

9 pay over the life of the loans (assuming a 10-year 

10 repayment plan), and a disclosure that the student 

11 may be eligible for extended or income-driven repay12 ment plans that allow the borrower to make lower 

13 monthly payments along with an explanation that 

14 longer repayment terms may result in the student 

15 paying more money over the life of the loans. 

16 ‘‘(6) Where a student or the student’s family 

17 can seek additional information regarding the finan18 cial aid offered, including contact information for 

19 the institution’s financial aid office and the Depart20 ment of Education’s website on financial aid. 

21 ‘‘(7) A disclosure that Federal student loans 

22 offer generally more favorable terms and beneficial 

23 repayment options than private education loans so 

24 students should examine available Federal student 

25 loan options before applying for private education 


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1 loans, and an explanation to be written by the Sec2 retary of Education, in consultation with the heads 

3 of relevant Federal agencies, of the benefits unique 

4 to Federal student loans, including various repay5 ment plans, loan forgiveness, and loan deferment, 

6 and the terms to examine carefully if considering a 

7 private education loan. 

8 ‘‘(8) The deadline and summary of the process, 

9 if any, for accepting the financial aid offered in the 

10 financial aid offer form. 

11 ‘‘(9) The academic period covered by the finan12 cial aid offer form and a clear indication whether the 

13 aid offered is based on full-time or part-time enroll14 ment. 

15 ‘‘(10) With respect to institutions where more 

16 than 30 percent of enrolled students borrow loans to 

17 pay for their education, the institution’s most recent 

18 cohort default rate, as defined in section 435(m) of 

19 the Higher Education Act of 1965 (20 U.S.C. 

20 1085(m)), compared to the national average cohort 

21 default rate. 

22 ‘‘(11) The percentage of students at the institu23 tion who take out student loans and median debt at 

24 graduation for students at the institution. 


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1 ‘‘(12) Any other information the Secretary of 

2 Education, in consultation with the heads of relevant 

3 Federal agencies, determines necessary so that stu4 dents and parents can make informed loan bor5 rowing decisions.’’; and 

6 (3) by adding at the end the following: 

7 ‘‘(c) OTHER REQUIRED CONTENTS FOR THE OFFER

8 FORM.—The standard format developed under subsection 

9 (a) shall also include the following information to be in10 cluded on the financial aid offer form in a concise format 

11 determined by the Secretary of Education, in consultation 

12 with the heads of relevant Federal agencies: 

13 ‘‘(1) A concise summary of the terms and con14 ditions of financial aid recommended under para15 graphs (2), (4), and (5) of subsection (b), and a 

16 method to provide students with additional informa17 tion about such terms and conditions, such as links 

18 to the supplementary information. 

19 ‘‘(2) At the institution’s discretion, additional 

20 options for paying for the net amount listed in sub21 section (b)(3), such as the amount recommended to 

22 be paid by the student or student’s family, Federal 

23 Direct PLUS Loans under section 455 of the High24 er Education Act of 1965 (20 U.S.C. 1087e), or pri25 vate education loans. If the institution recommends 


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1 private education loans, as defined in section 140 of 

2 the Truth in Lending Act (15 U.S.C. 1650), the fi3 nancial aid offer form shall contain the additional 

4 following disclosures on the offer form: 

5 ‘‘(A) The availability of, and the student’s 

6 potential eligibility for, Federal financial assist7 ance under title IV of the Higher Education 

8 Act of 1965 (20 U.S.C. 1070 et seq.). 

9 ‘‘(B) The impact of a proposed private 

10 education loan on the student’s potential eligi11 bility for other financial assistance, including 

12 Federal financial assistance under title IV of 

13 the Higher Education Act of 1965 (20 U.S.C. 

14 1070 et seq.). 

15 ‘‘(C) The student’s ability to select a pri16 vate educational lender of the student’s choice. 

17 ‘‘(D) The student’s right to accept or re18 ject a private education loan within the 30-day 

19 period following a private educational lender’s 

20 approval of a student’s application and a stu21 dent’s 3-day right-to-cancel period. 

22 ‘‘(E) With respect to dependent students, 

23 any reference to private education loans shall be 

24 accompanied by information about the rec25 ommended family contribution and the availVerDate Sep 11 2014 23:31 Apr 17, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S888.IS S888

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1 ability of, and terms and conditions associated 

2 with, Federal Direct PLUS Loans under sec3 tion 455 of the Higher Education Act of 1965 

4 (20 U.S.C. 1087e) for the student’s parents re5 gardless of family income, and of the student’s 

6 increased eligibility for Federal student loans 

7 under title IV of the Higher Education Act of 

8 1965 (20 U.S.C. 1070 et seq.) if the student’s 

9 parents are not able to borrow under the Fed10 eral Direct PLUS Loan program. 

11 ‘‘(3) The following disclosures: 

12 ‘‘(A) That the financial aid offer form only 

13 contains information for 1 academic period and 

14 the financial aid offered in following academic 

15 periods may change, unless the institution is of16 fering aid that covers multiple academic peri17 ods. 

18 ‘‘(B) How non-institutional scholarships 

19 awarded to the student affect the financial aid 

20 package offered to the student. 

21 ‘‘(C) A concise summary of any Federal or 

22 institutional conditions required to receive and 

23 renew financial aid and a method to provide 

24 students with additional information about 


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1 these conditions, such as links to the supple2 mentary information. 

3 ‘‘(d) ADDITIONAL REQUIREMENTS FOR FINANCIAL

4 AID OFFER FORM.—In addition to the requirements listed 

5 under subsections (b) and (c), the financial aid offer form 

6 shall meet the following requirements: 

7 ‘‘(1) Clearly distinguish between the aid offered 

8 in paragraphs (2), (4), and (5) of subsection (b), by 

9 including a subtotal for the aid offered in each of 

10 such paragraphs and by refraining from commin11 gling the different types of aid described in such 

12 paragraphs. 

13 ‘‘(2) Use standard definitions and names for 

14 the terms described in subsection (b) that are devel15 oped by the Secretary of Education in consultation 

16 with the heads of relevant Federal agencies, rep17 resentatives of institutions of higher education, non18 profit consumer groups, students, and secondary 

19 school and higher education guidance counselors, not 

20 later than 3 months after the date of enactment of 

21 the Understanding the True Cost of College Act of 

22 2017. 

23 ‘‘(3) If an institution’s recommended Federal 

24 student loan aid offered in subsection (b)(5) is less 

25 than the Federal maximum available to the student, 


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1 the institution shall provide additional information 

2 on Federal student loans, including the types and 

3 amounts for which the student is eligible in an at4 tached document or webpage. 

5 ‘‘(4) Use standard formatting and design that 

6 the Secretary of Education, in consultation with the 

7 heads of relevant Federal agencies, representatives 

8 of institutions of higher education, nonprofit con9 sumer groups, students, and secondary school and 

10 higher education guidance counselors determine is 

11 appropriate to produce multiple draft financial aid 

12 offer designs for consumer testing not later than 3 

13 months after the date of enactment of the Under14 standing the True Cost of College Act of 2017 to en15 sure— 

16 ‘‘(A) that figures described in paragraphs 

17 (1) through (5) of subsection (b) are in the 

18 same font, appear in the same order, and are 

19 displayed prominently on the first page of the 

20 financial aid offer form whether produced in 

21 written or electronic format; and 

22 ‘‘(B) that the other information required 

23 in subsections (b) and (c) appears in a standard 

24 format and design on the financial aid offer 

25 form. 


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1 ‘‘(5) Include an attestation that the student has 

2 accessed and read the financial aid offer form, if 

3 provided to the student in electronic format. 

4 ‘‘(6) Include language developed by the Sec5 retary of Education, in consultation with the heads 

6 of relevant Federal agencies, notifying eligible stu7 dents that they may be eligible for education bene8 fits, and where they can locate more information 

9 about such benefits, described in the following provi10 sions: 

11 ‘‘(A) Chapter 30, 31, 32, 33, 34, or 35 of 

12 title 38, United States Code. 

13 ‘‘(B) Chapter 101, 105, 106A, 1606, 1607, 

14 or 1608 of title 10, United States Code. 

15 ‘‘(C) Section 1784a, 2005, or 2007 of title 

16 10, United States Code. 

17 ‘‘(e) ADDITIONAL INFORMATION.—Nothing in this 

18 section shall preclude an institution from supplementing 

19 the financial aid offer form with additional information so 

20 long as such additional information supplements the fi21 nancial aid offer form and is not located on the financial 

22 aid offer form. 

23 ‘‘(f) CONSUMER TESTING.— 

24 ‘‘(1) IN GENERAL.—Not later than 3 months 

25 after the date of enactment of the Understanding 


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1 the True Cost of College Act of 2017, the Secretary 

2 of Education, in consultation with the heads of rel3 evant Federal agencies, shall establish a process to 

4 submit the financial aid offer form developed under 

5 this section for consumer testing among representa6 tives of students (including low-income students, 

7 first generation college students, adult students, and 

8 prospective students), students’ families (including 

9 low-income families, families with first generation 

10 college students, and families with prospective stu11 dents), institutions of higher education, secondary 

12 school and postsecondary counselors, and nonprofit 

13 consumer groups. 

14 ‘‘(2) LENGTH OF CONSUMER TESTING.—The 

15 Secretary of Education shall ensure that the con16 sumer testing lasts no longer than 6 months after 

17 the process for consumer testing is developed under 

18 paragraph (1). 

19 ‘‘(3) USE OF RESULTS.—The results of con20 sumer testing under paragraph (1) shall be used in 

21 the final development of the financial aid offer form. 

22 ‘‘(4) REPORTING REQUIREMENT.—Not later 

23 than 3 months after the date the consumer testing 

24 under paragraph (1) concludes, the Secretary of 

25 Education shall submit to Congress the final standVerDate Sep 11 2014 23:31 Apr 17, 2017 Jkt 069200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S888.IS S888

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1 ard financial aid offer form and a report detailing 

2 the results of such testing, including whether the 

3 Secretary added any additional items to the stand4 ard financial aid offer form pursuant to subsection 

5 (b)(10). 

6 ‘‘(5) AUTHORITY TO MODIFY.—The Secretary 

7 of Education may modify the definitions, terms, for8 matting, and design of the financial aid offer form 

9 based on the results of consumer testing required 

10 under this subsection and before finalizing the 

11 form.’’. 

12 (b) MANDATORY FORM.—Part B of title I of the 

13 Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) 

14 is amended by adding at the end the following: 

15 ‘‘SEC. 124. USE OF MANDATORY FINANCIAL AID OFFER 

16 FORM. 

17 ‘‘(a) IN GENERAL.—Notwithstanding any other pro18 vision of law, each institution of higher education that re19 ceives Federal financial assistance under this Act shall use 

20 the financial aid offer form developed under section 484 

21 of the Higher Education Opportunity Act (20 U.S.C. 1092 

22 note) in providing written or electronic financial aid offers 

23 to students enrolled in, or accepted for enrollment in, the 

24 institution. 


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1 ‘‘(b) EFFECTIVE DATE.—The requirement under 

2 subsection (a) shall take effect 8 months after the Sec3 retary of Education finalizes the offer form developed 

4 under section 484(a) of the Higher Education Oppor5 tunity Act (20 U.S.C. 1092 note).’’. 

Æ 


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