Helping Students Plan for College Act of 2021

To require institutions of higher education to notify students of the impact of private scholarships and grants on eligibility for institutional financial aid, and for other purposes. 1. Short title This Act may be cited as the Helping Students Plan for College Act of 2021 2. Private scholarship impact on institutional financial aid Section 485(a)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(a)(1) (1) in subparagraph (A), by inserting , and, in the case of an institution described in subparagraph (W), a statement that eligibility for such programs may be impacted by the receipt of financial assistance not received under this title, including all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student’s need is made institution (2) in subparagraph (U), by striking and (3) in subparagraph (V), by striking the period and inserting ; and (4) by adding at the end the following new subparagraph: (W) in the case of an institution that adjusts awards of institutional financial aid based on student receipt of financial assistance not received under this title, the institutional policies on making such adjustments, including scholarships, grants, loans, or other assistance, and how receipt of such assistance may impact eligibility for, and the amount of, institutional financial aid awards. . 3. GAO study and report (a) Study Not later than 90 days after the date of enactment of this Act, the Comptroller General shall begin to conduct a study on the relationship between— (1) financial assistance not received under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. (2) eligibility for, and the amount of, institutional financial aid awards to students by institutions of higher education, as defined in section 102 of such Act ( 20 U.S.C. 1002 (b) Data The study conducted under subsection (a) (1) the demographic characteristics of students who use private scholarships to pay for college; and (2) policies of institutions of higher education for accounting for private scholarships when awarding financial aid, and how such policies can affect financial aid offers. (c) Report At the conclusion of the study conducted in accordance with this section, the Comptroller General shall submit a report on the results of such study to the Committee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, and shall make such report publicly available. Such report shall include recommendations, as appropriate, for legislative action to support the use of financial assistance not received under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.

Summary: Helping Students Plan for College Act of 2021 This bill requires certain statements related to the impact of nonfederal financial assistance (e.g., private scholarships, grants, and loans) on financial-aid awards from an institution of higher education (IHE). Specifically, the bill requires an IHE that participates in federal student-aid programs and adjusts its financial-aid awards based on students receiving such other financial assistance to provide enrolled and prospective students with a statement about (1) its policies on adjusting awards, and (2) how receipt of such other financial assistance may impact student eligibility for and the amount of financial-aid awards from the IHE. The Government Accountability Office must study and report on the relationship between such other financial assistance and eligibility for and the amount of financial-aid awards from IHEs.