II 

118TH CONGRESS 

1ST SESSION S. 528 

To require a standard financial aid offer form, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 27, 2023 

Mr. GRASSLEY (for himself, Ms. SMITH, and Ms. ERNST) introduced the following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

A BILL 

To require a standard financial aid offer form, and for other 

purposes. 

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 2023’’. 

6 SEC. 2. INSTITUTION FINANCIAL AID OFFER FORM. 

7 Section 484 of the Higher Education Opportunity 

8 Act (20 U.S.C. 1092 note) is amended to read as follows: 


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1 ‘‘SEC. 484. INSTITUTION FINANCIAL AID OFFER FORM. 

2 ‘‘(a) STANDARD FORMAT AND TERMINOLOGY.—The 

3 Secretary of Education, in consultation with the heads of 

4 relevant Federal agencies, shall develop standard termi5 nology and a standard format for financial aid offer forms 

6 based on recommendations from representatives of stu7 dents, veterans, servicemembers, students’ families, insti8 tutions of higher education (including community colleges, 

9 for-profit institutions, four year public institutions, and 

10 four year private nonprofit institutions), financial aid ex11 perts, secondary school and postsecondary counselors, 

12 nonprofit organizations, and consumer groups. 

13 ‘‘(b) KEY REQUIRED CONTENTS FOR OFFER

14 FORM.—The standard format developed under subsection 

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

16 simple and understandable, a form titled ‘Financial Aid 

17 Offer’, which shall include the following items, with costs 

18 listed first followed by grants and scholarships, clearly 

19 separated from each other with separate headings: 

20 ‘‘(1) COST INFORMATION.— 

21 ‘‘(A) Information on the student’s esti22 mated cost of attendance, including the fol23 lowing: 

24 ‘‘(i) Total direct costs, including the 

25 component totals each for— 


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1 ‘‘(I) tuition and fees, as deter2 mined under section 472 of the High3 er Education Act of 1965 (20 U.S.C. 

4 1087ll); and 

5 ‘‘(II) college-sponsored housing 

6 and food costs (as determined based 

7 on the costs for room and board 

8 under such section). 

9 ‘‘(ii) Total estimated other expenses, 

10 including— 

11 ‘‘(I) the component totals each 

12 for housing and food costs for stu13 dents who reside off-campus; and 

14 ‘‘(II) for all students, books, sup15 plies, transportation, and miscella16 neous personal expenses (which may 

17 include costs of health insurance and 

18 dependent care), as determined under 

19 section 472 of the Higher Education 

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

21 ‘‘(B) An indication of the academic period 

22 covered by the financial aid offer, and an expla23 nation that the financial aid offered may 

24 change for academic periods not covered by the 

25 aid offer or by program. 


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1 ‘‘(C) An indication of whether cost and aid 

2 estimates are based on full-time or part-time 

3 enrollment. 

4 ‘‘(D) An indication, as applicable, about 

5 whether the tuition and fees are estimated 

6 based on the previous year, or are set, for the 

7 academic period indicated in accordance with 

8 subparagraph (B). 

9 ‘‘(2) GRANTS AND SCHOLARSHIPS.—The aggre10 gate amount of grants and scholarships by source 

11 that the student does not have to repay, such as 

12 grant aid offered under title IV of the Higher Edu13 cation Act of 1965 (20 U.S.C. 1070 et seq.) and 

14 grant aid offered through other Federal programs, 

15 grant aid offered by the institution, grant aid of16 fered by the State, and, if known, grant aid from an 

17 outside source to the student for such academic pe18 riod, including— 

19 ‘‘(A) a disclosure that the grants and 

20 scholarships do not have to be repaid; and 

21 ‘‘(B) if institutional aid is included— 

22 ‘‘(i) the conditions under which the 

23 student can expect to receive similar 

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1 demic period the student is enrolled at the 

2 institution; and 

3 ‘‘(ii) whether the institutional aid 

4 offer may change if grants or scholarships 

5 from outside sources are applied after the 

6 student receives the offer form, and, if ap7 plicable, how that aid will change. 

8 ‘‘(3) NET PRICE.— 

9 ‘‘(A) The net price that the student, or the 

10 student’s family on behalf of the student, is es11 timated to have to pay for the student to attend 

12 the institution for such academic period, equal 

13 to— 

14 ‘‘(i) the cost of attendance as de15 scribed in paragraph (1)(A) for the stu16 dent for the period indicated in paragraph 

17 (1)(B); minus 

18 ‘‘(ii) the amount of grant aid de19 scribed in paragraph (2) that is included in 

20 the financial aid offer form. 

21 ‘‘(B) A disclosure that the net price is an 

22 estimate of the total expenses for the year and 

23 not equivalent to the amount the student will 

24 owe directly to the institution. 

25 ‘‘(4) LOANS.— 


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1 ‘‘(A) Information on any loan under part 

2 D or part E of title IV of the Higher Education 

3 Act of 1965 (20 U.S.C. 1087a et seq.; 20 

4 U.S.C. 1087aa et seq.) (except a Federal Direct 

5 PLUS Loan under part D of that Act) that the 

6 institution recommends for the student for the 

7 academic period covered by the offer, which 

8 shall be made— 

9 ‘‘(i) with clear use of the word ‘loan’ 

10 to describe the recommended loan 

11 amounts; and 

12 ‘‘(ii) with clear labeling of subsidized 

13 and unsubsidized loans. 

14 ‘‘(B) A disclosure that such loans have to 

15 be repaid and a disclosure that the student can 

16 borrow a lesser or, if applicable, greater amount 

17 than the recommended loan amount. 

18 ‘‘(C) A disclosure that the interest rates 

19 and fees on such loans are set annually and af20 fect total cost over time, and a link to a De21 partment of Education website that includes 

22 current information on interest rates and fees. 

23 ‘‘(D) A link to the Department of Edu24 cation’s repayment calculator website for stu25 dents with instruction that this website contains 


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1 customizable estimates of expected repayment 

2 costs under different loan repayment plans. 

3 ‘‘(5) PROCESS FOR ACCEPTING OR DECLINING

4 AID AND NEXT STEPS.— 

5 ‘‘(A) The deadlines and a summary of the 

6 process (including the next steps) for— 

7 ‘‘(i) accepting the financial aid offered 

8 in the financial aid offer form; 

9 ‘‘(ii) requesting higher loan amounts 

10 if recommended loan amounts were in11 cluded; and 

12 ‘‘(iii) declining aid offered in the 

13 form. 

14 ‘‘(B) Information on when and how direct 

15 costs to the institution must be paid. 

16 ‘‘(C) A disclosure that verification of finan17 cial circumstances may require the student to 

18 submit further documentation. 

19 ‘‘(D) Information about where a student or 

20 the student’s family can seek additional infor21 mation regarding the financial aid offered, in22 cluding contact information for the institution’s 

23 financial aid office and the Department of Edu24 cation’s website on financial aid. 


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1 ‘‘(6) ADDITIONAL INFORMATION.—Any other 

2 information the Secretary of Education, in consulta3 tion with the heads of relevant Federal agencies, in4 cluding the Secretary of the Treasury and the Direc5 tor of the Bureau of Consumer Financial Protection, 

6 determines necessary (based on the results of the 

7 consumer testing under paragraph (g)(2)) so that 

8 students and parents can make informed loan bor9 rowing decisions, which may include— 

10 ‘‘(A) the most recent cohort default rate, 

11 as defined in section 435(m) of the Higher 

12 Education Act of 1965 (20 U.S.C. 1085(m)) 

13 with respect to an institution where more than 

14 30 percent of enrolled students borrow loans to 

15 pay for their education, and a comparison to 

16 the national average cohort default rate; 

17 ‘‘(B) the percentage of students at the in18 stitution who borrow student loans; 

19 ‘‘(C) the median loan debt at graduation 

20 for students at the institution (clearly marked 

21 as including only Federal loans if private loan 

22 data are not available to be included); and 

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1 derstand full college costs, financial aid gaps, 

2 and options for covering those gaps. 

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

4 FORM.—The standard form developed under subsection 

5 (a) shall include, in addition to the information described 

6 in subsection (b), the following information to be included 

7 on the financial aid offer form in a concise format deter8 mined by the Secretary of Education, in consultation with 

9 the heads of relevant Federal agencies: 

10 ‘‘(1) At the institution’s discretion— 

11 ‘‘(A) additional options and potential re12 sources for paying for the amount listed in sub13 section (b)(3), such as tuition payment plans; 

14 and 

15 ‘‘(B) a disclosure that Federal Direct 

16 PLUS Loans or private education loans may be 

17 available to cover remaining need, except that 

18 the institution may not include an amount for 

19 Federal Direct PLUS Loans or private edu20 cation loans and must include a disclosure for 

21 Federal Direct PLUS Loans that such loans 

22 are subject to an additional application process, 

23 and a disclosure that both types of loans have 

24 to be repaid by the borrower, and may not be 

25 eligible for all the benefits available for Federal 


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1 Direct Stafford Loans or Federal Direct Un2 subsidized Stafford Loans. 

3 ‘‘(2) The following information relating to pri4 vate student loans: 

5 ‘‘(A) A statement that students consid6 ering borrowing to cover the cost of attendance 

7 should consider available Federal student loans 

8 prior to applying for private education loans, in9 cluding an explanation that Federal student 

10 loans offer generally more favorable terms and 

11 beneficial repayment options than private loans. 

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

13 education loan on the student’s potential eligi14 bility for other financial assistance, including 

15 Federal financial assistance under title IV of 

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

17 1070 et seq.). 

18 ‘‘(C) A statement explaining the student’s 

19 ability to select a private educational lender of 

20 the student’s choice. 

21 ‘‘(3) Information on work-study employment 

22 opportunities, offered in accordance with part C of 

23 title IV of the Higher Education Act of 1965 (20 

24 U.S.C. 1087–51 et seq.) including a disclosure that 

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1 ability of qualified employment opportunities and is 

2 disbursed over time as earned by the student. Work3 study employment opportunities (or a student’s po4 tential income based on those opportunities) shall 

5 not be included in the category of financial aid de6 scribed under subsection (b)(2). 

7 ‘‘(d) ADDITIONAL REQUIREMENTS FOR FINANCIAL

8 AID OFFER FORM.—The financial aid offer form shall 

9 meet the following requirements: 

10 ‘‘(1) Include, in addition to the requirements 

11 described in subsections (b) and (c), a concise sum12 mary, in plain language, of— 

13 ‘‘(A) the terms and conditions of financial 

14 aid recommended under paragraphs (2) and (4) 

15 of subsection (b) and subsection (c)(3), and a 

16 method to provide students with additional in17 formation about such terms and conditions, 

18 such as links to the supplementary information; 

19 and 

20 ‘‘(B) Federal, State, or institutional condi21 tions required to receive and renew financial aid 

22 and a method to provide students with addi23 tional information about these conditions, such 

24 as links to the supplementary information. 


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

2 under paragraphs (2) and (4) of subsection (b) and 

3 subsection (c)(3), by including a subtotal for the aid 

4 offered in each of such paragraphs and by refraining 

5 from commingling the different types of aid de6 scribed in such paragraphs. 

7 ‘‘(3) Use standard terminology and definitions, 

8 as described in subsection (e)(1) and use plain lan9 guage where possible. 

10 ‘‘(4) If an institution’s recommended Federal 

11 student loan aid offered in subsection (b)(4) is less 

12 than the Federal maximum available to the student, 

13 the institution shall provide additional information 

14 on Federal student loans, including the types and 

15 amounts for which the student is eligible in an at16 tached document or webpage. 

17 ‘‘(5) Use the standard offer form described in 

18 subsection (e)(2). 

19 ‘‘(6) Include the standardized statement regard20 ing the possible availability of Federal education 

21 benefits, as established by the Secretary in accord22 ance with subsection (e)(3). 

23 ‘‘(7) Include a delivery confirmation for elec24 tronic financial aid offer forms, except that receipt 

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1 ered an acceptance or rejection of aid by the stu2 dent. 

3 ‘‘(8) With respect to dependent students, any 

4 reference to private education loans shall be accom5 panied by— 

6 ‘‘(A) information about the availability of, 

7 and terms and conditions associated with, Fed8 eral Direct PLUS Loans under section 455 of 

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

10 1087e) for the student’s parents regardless of 

11 family income; and 

12 ‘‘(B) a notification of the student’s in13 creased eligibility for Federal student loans 

14 under title IV of the Higher Education Act of 

15 1965 (20 U.S.C. 1070 et seq.) if the student’s 

16 parents are not able to borrow under the Fed17 eral Direct PLUS Loan program. 

18 ‘‘(e) STANDARD INFORMATION ESTABLISHED BY

19 THE SECRETARY.— 

20 ‘‘(1) STANDARD TERMINOLOGY.—Not later 

21 than 3 months after the date of enactment of the 

22 Understanding the True Cost of College Act of 

23 2023, the Secretary of Education, in consultation 

24 with the heads of relevant Federal agencies, includ25 ing the Secretary of the Treasury and the Director 


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1 of the Consumer Financial Protection Bureau, rep2 resentatives of institutions of higher education, non3 profit consumer groups, students, and secondary 

4 school and higher education guidance counselors, 

5 shall establish standard terminology and definitions 

6 for the terms described in subsection (b). 

7 ‘‘(2) STANDARD FORM.— 

8 ‘‘(A) IN GENERAL.—The Secretary of Edu9 cation shall develop multiple draft financial aid 

10 offer forms for consumer testing, carry out con11 sumer testing for such forms, and establish a fi12 nalized standard financial aid offer form, in ac13 cordance with the process established in sub14 section (g) and the requirements of this section. 

15 ‘‘(B) SEPARATE FINANCIAL AID OFFER

16 FORMS.—The Secretary may develop separate 

17 financial aid offer forms for— 

18 ‘‘(i) undergraduate students and grad19 uate students; and 

20 ‘‘(ii) first-time students and returning 

21 students. 

22 ‘‘(3) ADDITIONAL BENEFITS.—The Secretary of 

23 Education, in consultation with the heads of relevant 

24 Federal agencies, including the Secretary of the 

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1 retary of Defense, and the Director of the Consumer 

2 Financial Protection Bureau, shall establish stand3 ard language notifying students that they may be el4 igible for education benefits (and where students can 

5 locate more information about such benefits) includ6 ing benefits in accordance with each of the following: 

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

8 title 38, United States Code. 

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

10 or 1608 of title 10, United States Code. 

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

12 10, United States Code. 

13 ‘‘(f) SUPPLEMENTAL INFORMATION; REMOVAL OF

14 INFORMATION.— 

15 ‘‘(1) Nothing in this section shall preclude an 

16 institution from supplementing the financial aid 

17 offer form with additional information if such addi18 tional information supplements the financial aid 

19 offer form and is not located on the financial aid 

20 offer form, and provided such information utilizes 

21 the same standard terminology identified in sub22 section (e)(1). 

23 ‘‘(2) Nothing in this section shall preclude an 

24 institution from deleting a required item if the stu25 dent is ineligible for such aid. 


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1 ‘‘(g) DEVELOPMENT OF FINANCIAL AID OFFER

2 FORM.— 

3 ‘‘(1) DRAFT FORM.—Not later than 9 months 

4 after the date of enactment of the Understanding 

5 the True Cost of College Act of 2023, the Secretary 

6 of Education, in consultation with the heads of rel7 evant Federal agencies, including the Secretary of 

8 the Treasury and the Director of the Consumer Fi9 nancial Protection Bureau, representatives of insti10 tutions of higher education, nonprofit consumer 

11 groups, students, and secondary school and higher 

12 education guidance counselors, shall design and 

13 produce multiple draft financial aid offer forms for 

14 consumer testing with postsecondary students or 

15 prospective students. In developing that form, the 

16 Secretary shall ensure— 

17 ‘‘(A) that the headings described in para18 graphs (1) through (4) of subsection (b) is in 

19 the same font, appears in the same order, and 

20 is displayed prominently on the financial aid 

21 offer form, such that none of that information 

22 is inappropriately omitted or de-emphasized; 

23 ‘‘(B) that the other information required 

24 in subsection (b) appears in a standard format 

25 and design on the financial aid offer form; and 


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1 ‘‘(C) that the institution may include a 

2 logo or brand alongside the title of the financial 

3 aid offer form. 

4 ‘‘(2) CONSUMER TESTING.— 

5 ‘‘(A) IN GENERAL.—Not later than 9 

6 months after the date of enactment of the Un7 derstanding the True Cost of College Act of 

8 2023, the Secretary of Education, in consulta9 tion with the heads of relevant Federal agen10 cies, shall establish a process to submit the fi11 nancial aid offer form drafts developed under 

12 paragraph (1) for consumer testing among rep13 resentatives of students (including low-income 

14 students, first generation college students, adult 

15 students, veterans, servicemembers, and pro16 spective students), students’ families (including 

17 low-income families, families with first genera18 tion college students, and families with prospec19 tive students), institutions of higher education, 

20 secondary school and postsecondary counselors, 

21 and nonprofit consumer groups. 

22 ‘‘(B) PILOT.—During such consumer test23 ing, the Secretary shall ensure that not less 

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1 tions use the draft forms developed under para2 graph (1), including institutions— 

3 ‘‘(i) that reflect a proportionate rep4 resentation (based on the total number of 

5 students enrolled in postsecondary edu6 cation) of community colleges, for-profit 

7 institutions, four year public institutions, 

8 and four year private nonprofit institu9 tions; and 

10 ‘‘(ii) that reflect geographic diversity. 

11 ‘‘(C) LENGTH OF CONSUMER TESTING.— 

12 The Secretary of Education shall ensure that 

13 the consumer testing under this paragraph lasts 

14 no longer than 8 months after the process for 

15 consumer testing is developed under subpara16 graph (A). 

17 ‘‘(3) FINAL FORM.— 

18 ‘‘(A) IN GENERAL.—The results of con19 sumer testing under paragraph (2) shall be 

20 used in the final development of the financial 

21 aid offer form. 

22 ‘‘(B) REPORTING REQUIREMENT.—Not 

23 later than 3 months after the date the con24 sumer testing under paragraph (2) concludes, 

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1 gress and publish on its website the final stand2 ard financial aid offer form and a report detail3 ing the results of such testing, including wheth4 er the Secretary of Education added any addi5 tional items to the standard financial aid offer 

6 form pursuant to subsection (b)(6). 

7 ‘‘(4) AUTHORITY TO MODIFY.—The Secretary 

8 of Education may modify the definitions, terms, for9 matting, and design of the financial aid offer form 

10 based on the results of consumer testing required 

11 under this subsection and before finalizing the form, 

12 or in subsequent consumer testing. The Secretary 

13 may also recommend additional changes to Con14 gress.’’. 

15 SEC. 3. MANDATORY FORM. 

16 Part B of title I of the Higher Education Act of 1965 

17 (20 U.S.C. 1011 et seq.) is amended by adding at the end 

18 the following: 

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

20 FORM AND TERMS. 

21 ‘‘(a) IN GENERAL.—Notwithstanding any other pro22 vision of law, each institution of higher education that re23 ceives Federal financial assistance under this Act shall— 

24 ‘‘(1) use the financial aid offer form developed 

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1 tunity Act (20 U.S.C. 1092 note) in providing 

2 paper, mobile-optimized offers, or other electronic of3 fers to all students who apply for aid and are accept4 ed at the institution; and 

5 ‘‘(2) use the standard terminology and defini6 tions developed by the Secretary of Education under 

7 subsection (e)(1) of that Act for all communications 

8 from the institution related to financial aid offers. 

9 ‘‘(b) EFFECTIVE DATES.—The requirements under 

10 this section shall take effect at the start of the first award 

11 year after the Secretary of Education finalizes the stand12 ard terminology and form developed in accordance with 

13 section 484 of the Higher Education Opportunity Act (20 

14 U.S.C. 1092 note).’’. 

15 ‘‘(c) ADMINISTRATIVE PROCEDURES.—Section 492 

16 of the Higher Education Act (20 U.S.C. 1098a) shall not 

17 apply with respect to regulations promulgated in accord18 ance with this section.’’. 

Æ 


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