II 

114TH CONGRESS 

1ST SESSION S. 2149 

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 

OCTOBER 7, 2015 

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 2015’’. 


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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.), or 

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

23 outside source to the student for such academic pe24 riod, including a disclosure that the financial aid 

25 does not have to be repaid and whether the student 


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1 can expect to receive similar amounts of such finan2 cial aid for each academic period the student is en3 rolled at the institution. 

4 ‘‘(3) The net price that the student, or the stu5 dent’s family on behalf of the student, is estimated 

6 to have to pay for the student to attend the institu7 tion for such academic period, with a disclaimer that 

8 actual costs for some items may depend on decisions 

9 by the student, equal to— 

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

11 paragraph (1) for the student for such aca12 demic period, minus 

13 ‘‘(B) the amount of financial aid described 

14 in paragraph (2) that is included in the finan15 cial aid offer form. 

16 ‘‘(4) Work study assistance, including a disclo17 sure that the aid must be earned by the student and 

18 a disclosure that the assistance offered is subject to 

19 the availability of employment opportunities. 

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

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

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

23 that the institution recommends for the student for 

24 such academic period, a disclosure that such loans 

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


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1 borrow a lesser amount than the recommended loan 

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

3 the recommended loan amounts, the interest rates, 

4 fees, the expected monthly repayment amounts (as5 suming a 10-year repayment plan), the total amount 

6 the student will pay over the life of the loans (as7 suming a 10-year repayment plan), and a disclosure 

8 that the student may be eligible for longer repay9 ment terms, such as extended or income-based plans, 

10 and that longer repayment terms may result in the 

11 student paying more money over the life of the 

12 loans. 

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

14 can seek additional information regarding the finan15 cial aid offered, including contact information for 

16 the institution’s financial aid office and the Depart17 ment of Education’s website on financial aid. 

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

19 offer generally more favorable terms and beneficial 

20 repayment options than private education loans so 

21 students should examine available Federal student 

22 loan options before applying for private education 

23 loans, and an explanation to be written by the Sec24 retary of Education, in consultation with the heads 

25 of relevant Federal agencies, of the benefits unique 


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1 to Federal student loans, including various repay2 ment plans, loan forgiveness, and loan deferment, 

3 and the terms to examine carefully if considering a 

4 private education loan. 

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

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

7 financial aid offer form. 

8 ‘‘(9) The academic period covered by the finan9 cial aid offer form and a clear indication whether the 

10 aid offered is based on full-time or part-time enroll11 ment. 

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

13 than 30 percent of enrolled students borrow loans to 

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

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

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

17 1085(m)), compared to the national average cohort 

18 default rate. 

19 ‘‘(11) Any other information the Secretary of 

20 Education, in consultation with the heads of relevant 

21 Federal agencies, determines necessary so that stu22 dents and parents can make informed loan bor23 rowing decisions, including quality metrics such as 

24 percentage of students at the institution who take 


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1 out student loans and average debt at graduation for 

2 students at the institution.’’; and 

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

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

5 FORM.—The standard format developed under subsection 

6 (a) shall also include the following information to be in7 cluded on the financial aid offer form in a concise format 

8 determined by the Secretary of Education, in consultation 

9 with the heads of relevant Federal agencies: 

10 ‘‘(1) A concise summary of the terms and con11 ditions of financial aid recommended under para12 graphs (2), (4), and (5) of subsection (b), and a 

13 method to provide students with additional informa14 tion about such terms and conditions, such as links 

15 to the supplementary information. 

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

17 options for paying for the net amount listed in sub18 section (b)(3), such as the amount recommended to 

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

20 Direct PLUS Loans under section 455 of the High21 er Education Act of 1965 (20 U.S.C. 1087e), or pri22 vate education loans. If the institution recommends 

23 private education loans, as defined in section 140 of 

24 the Truth in Lending Act (15 U.S.C. 1650), the fiVerDate Sep 11 2014 03:06 Oct 10, 2015 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2149.IS S2149

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1 nancial aid offer form shall contain the additional 

2 following disclosures on the offer form: 

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

4 potential eligibility for, Federal financial assist5 ance under title IV of the Higher Education 

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

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

8 education loan on the student’s potential eligi9 bility for other financial assistance, including 

10 Federal financial assistance under title IV of 

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

12 1070 et seq.). 

13 ‘‘(C) The student’s ability to select a pri14 vate educational lender of the student’s choice. 

15 ‘‘(D) The student’s right to accept or re16 ject a private education loan within the 30-day 

17 period following a private educational lender’s 

18 approval of a student’s application and a stu19 dent’s 3-day right-to-cancel period. 

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

21 any reference to private education loans shall be 

22 accompanied by information about the rec23 ommended family contribution and the avail24 ability of, and terms and conditions associated 

25 with, Federal Direct PLUS Loans under secVerDate Sep 11 2014 03:06 Oct 10, 2015 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2149.IS S2149

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1 tion 455 of the Higher Education Act of 1965 

2 (20 U.S.C. 1087e) for the student’s parents re3 gardless of family income, and of the student’s 

4 increased eligibility for Federal student loans 

5 under title IV of the Higher Education Act of 

6 1965 (20 U.S.C. 1070 et seq.) if the student’s 

7 parents are not able to borrow under the Fed8 eral Direct PLUS Loan program. 

9 ‘‘(3) The following disclosures: 

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

11 contains information for 1 academic period and 

12 the financial aid offered in following academic 

13 periods may change, unless the institution is of14 fering aid that covers multiple academic peri15 ods. 

16 ‘‘(B) How non-institutional scholarships 

17 awarded to the student affect the financial aid 

18 package offered to the student. 

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

20 institutional conditions required to receive and 

21 renew financial aid and a method to provide 

22 students with additional information about 

23 these conditions, such as links to the supple24 mentary information. 


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1 ‘‘(d) ADDITIONAL REQUIREMENTS FOR FINANCIAL

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

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

4 shall meet the following requirements: 

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

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

7 including a subtotal for the aid offered in each of 

8 such paragraphs and by refraining from commin9 gling the different types of aid described in such 

10 paragraphs. 

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

12 the terms described in subsection (b) that are devel13 oped by the Secretary of Education in consultation 

14 with the heads of relevant Federal agencies, rep15 resentatives of institutions of higher education, non16 profit consumer groups, students, and secondary 

17 school and higher education guidance counselors, not 

18 later than 3 months after the date of enactment of 

19 the Understanding the True Cost of College Act of 

20 2015. 

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

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

23 than the Federal maximum available to the student, 

24 the institution shall provide additional information 

25 on Federal student loans, including the types and 


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1 amounts for which the student is eligible in an at2 tached document or webpage. 

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

4 the Secretary of Education, in consultation with the 

5 heads of relevant Federal agencies, representatives 

6 of institutions of higher education, nonprofit con7 sumer groups, students, and secondary school and 

8 higher education guidance counselors determine is 

9 appropriate to produce multiple draft financial aid 

10 offer designs for consumer testing not later than 3 

11 months after the date of enactment of the Under12 standing the True Cost of College Act of 2015 to en13 sure— 

14 ‘‘(A) that figures described in paragraphs 

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

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

17 displayed prominently on the first page of the 

18 financial aid offer form whether produced in 

19 written or electronic format; and 

20 ‘‘(B) that the other information required 

21 in (b) and (c) appears in a standard format and 

22 design on the financial aid offer form. 

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

24 accessed and read the financial aid offer form, if 

25 provided to the student in electronic format. 


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1 ‘‘(6) Include language developed by the Sec2 retary of Education, in consultation with the heads 

3 of relevant Federal agencies, notifying eligible stu4 dents that they may be eligible for education bene5 fits, and where they can locate more information 

6 about such benefits, described in the following provi7 sions: 

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

9 title 38, United States Code. 

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

11 or 1608 of title 10, United States Code. 

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

13 10, United States Code. 

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

15 section shall preclude an institution from supplementing 

16 the financial aid offer form with additional information so 

17 long as such additional information supplements the fi18 nancial aid offer form and is not located on the financial 

19 aid offer form. 

20 ‘‘(f) CONSUMER TESTING.— 

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

22 after the date of enactment of the Understanding 

23 the True Cost of College Act of 2015, the Secretary 

24 of Education, in consultation with the heads of rel25 evant Federal agencies, shall establish a process to 


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1 submit the financial aid offer form developed under 

2 this section for consumer testing among representa3 tives of students (including low-income students, 

4 first generation college students, adult students, and 

5 prospective students), students’ families (including 

6 low-income families, families with first generation 

7 college students, and families with prospective stu8 dents), institutions of higher education, secondary 

9 school and postsecondary counselors, and nonprofit 

10 consumer groups. 

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

12 Secretary of Education shall ensure that the con13 sumer testing lasts no longer than 6 months after 

14 the process for consumer testing is developed under 

15 paragraph (1). 

16 ‘‘(3) USE OF RESULTS.—The results of con17 sumer testing under paragraph (1) shall be used in 

18 the final development of the financial aid offer form. 

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

20 than 3 months after the date the consumer testing 

21 under paragraph (1) concludes, the Secretary of 

22 Education shall submit to Congress the final stand23 ard financial aid offer form and a report detailing 

24 the results of such testing, including whether the 

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1 ard financial aid offer form pursuant to subsection 

2 (b)(10). 

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

4 of Education may modify the definitions, terms, for5 matting, and design of the financial aid offer form 

6 based on the results of consumer testing required 

7 under this subsection and before finalizing the 

8 form.’’. 

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

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

11 is amended by adding at the end the following: 

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

13 FORM. 

14 ‘‘(a) IN GENERAL.—Notwithstanding any other pro15 vision of law, each institution of higher education that re16 ceives Federal financial assistance under this Act shall use 

17 the financial aid offer form developed under section 484 

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

19 note) in providing written or electronic financial aid offers 

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

21 institution. 

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

23 subsection (a) shall take effect 8 months after the Sec24 retary of Education finalizes the offer form developed 


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1 under section 484(a) of the Higher Education Oppor2 tunity Act (20 U.S.C. 1092 note).’’. 

Æ 


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