Net Price Calculator Improvement Act

To amend the Higher Education Act of 1965 to make technical improvements to the Net Price Calculator system so that prospective students may have a more accurate understanding of the true cost of college. 1. Short title This Act may be cited as the Net Price Calculator Improvement Act 2. Minimum Standards for Net Price Calculators Section 132(h) of the Higher Education Act of 1965 ( 20 U.S.C. 1015a(h) (1) by redesignating paragraph (4) as paragraph (6); (2) in paragraph (2), by inserting before the period , and, not later than 1 year after the date of enactment of the Net Price Calculator Improvement Act, shall meet the requirements of paragraph (4)(B) (3) in paragraph (3), by inserting after the first sentence the following: Not later than 1 year after the date of enactment of the Net Price Calculator Improvement Act, such calculator shall meet the requirements of paragraph (4). (4) by inserting after paragraph (3) the following: (4) Minimum requirements for net price calculators Not later than 1 year after the date of enactment of the Net Price Calculator Improvement Act, a net price calculator for an institution of higher education shall, at a minimum, meet the following requirements: (A) The link for the calculator— (i) is clearly labeled as a net price calculator (ii) matches in size and font to the other prominent links on the primary menu; and (iii) may also be included on the institution’s compliance web page, which contains information relating to compliance with Federal, State, and local laws. (B) The results screen for the calculator specifies the following information: (i) The individual net price (as calculated under paragraph (2)) for the individual student, which is the most visually prominent figure on the results screen. (ii) Cost of attendance, including— (I) tuition and fees; (II) average annual cost of room and board for the institution for a first-time, full-time undergraduate student enrolled in the institution; (III) average annual cost of books and supplies for a first-time, full-time undergraduate student enrolled in the institution; and (IV) estimated cost of other expenses (including personal expenses and transportation) for a first-time, full-time undergraduate student enrolled in the institution. (iii) Estimated total need-based grant aid and merit-based grant aid, from Federal, State, and institutional sources, that may be available to the individual student, showing the subtotal for each category and the total of all sources of grant aid. (iv) Percentage of the first-time, full-time undergraduate students enrolled in the institution that received any type of grant aid described in clause (iii). (v) The disclaimer described in paragraph (6). (vi) In the case of a calculator that— (I) includes questions to estimate a student’s (or prospective student’s) eligibility for veterans’ education benefits (as defined in section 480) or educational benefits for active duty service members, such benefits are displayed on the results screen in a manner that clearly distinguishes them from the grant aid described in clause (iii); or (II) does not include questions to estimate eligibility for the benefits described in subclause (I), the results screen indicates that certain students (or prospective students) may qualify for such benefits and includes a link to information about such benefits. (C) The institution populates the calculator with data from not earlier than 2 academic years prior to the most recent academic year. (5) Prohibition on use of data collected by the net price calculator A net price calculator for an institution of higher education shall— (A) clearly indicate which questions are required to be completed for an estimate of the net price from the calculator; (B) in the case of a calculator that requests contact information from users, clearly mark such requests as optional (C) prohibit any personally identifiable information provided by users from being sold or made available to third parties; and (D) clearly state Any information that you provide on this site is confidential. The Net Price Calculator does not store your responses or require personal identifying information of any kind. . 3. Universal Net Price Calculator Section 132(h) of the Higher Education Act of 1965 ( 20 U.S.C. 1015a(h) (7) Universal net price calculator (A) In general The Secretary may develop a universal net price calculator that— (i) enables users to answer one set of questions and receive net prices for any institution that is required to have a net price calculator under this subsection; (ii) provides the information required under subparagraphs (B) and (C) of paragraph (4) for each institution for which a net price is being sought; (iii) is developed in consultation with the heads of relevant Federal agencies; and (iv) before being finalized and publicly released, is tested in accordance with subparagraph (B). (B) Consumer testing (i) In general If the Secretary develops a universal net price calculator under subparagraph (A), the Secretary, in consultation with the heads of relevant Federal agencies, shall establish a process to submit the universal net price calculator developed under this paragraph for consumer testing among representatives of students (including low-income students, first generation college students, adult students, and prospective students), students' families (including low-income families, families with first generation college students, and families with prospective students), institutions of higher education, secondary school and postsecondary counselors, and nonprofit consumer groups. (ii) Length of consumer testing The Secretary shall ensure that the consumer testing lasts no longer than 6 months after the process for consumer testing is developed under clause (i). (iii) Use of results The results of consumer testing under clause (i) shall be used in the final development of the universal net price calculator. (iv) Reporting requirement Not later than 3 months after the date the consumer testing under clause (i) concludes, the Secretary shall submit to Congress the final universal net price calculator and a report detailing the results of such testing, including whether the Secretary added any additional items to the calculator as a result of such testing. (v) Authority to modify The Secretary may modify the definitions, terms, formatting, and design of the universal net price calculator based on the results of consumer testing required under this paragraph and before finalizing the calculator. (8) Report from Secretary Not later than 1 year after the date of enactment of the Net Price Calculator Improvement Act .

Summary: Net Price Calculator Improvement Act - Amends the Higher Education Act of 1965 to establish the minimum requirements for the net price calculator that each institution of higher education (IHE) receiving federal funds under title IV (Student Assistance) of the Act must include on its website. (An IHE's "net price" is the average yearly price actually charged to first-time, full-time undergraduate students receiving student aid at the school after deducting such aid.) Requires the link for the calculator to be clearly labeled and conspicuously posted on an IHE's website. Requires each calculator's results page to include: the individual net price of attending the IHE (the individual net price is calculated like the net price but takes into account the cost of attendance for, and aid available to, the individual student to the extent practicable); the cost of attending the IHE; the estimated total need- and merit-based grant aid from federal, state, and institutional sources that may be available to the individual student; the percentage of such students enrolled at the school who receive any of that grant aid; and a notice that an estimate of an individual's net price is non-binding and subject to change. Requires calculators that estimate a user's eligibility for veterans' education benefits or educational benefits for active duty service members to clearly distinguish those benefits from other grant-aid. Requires calculators that do not make such estimates to provide users with notice of, and a link to information concerning, those benefits. Directs IHEs to populate their calculators with data from not earlier than two academic years prior to the most recent academic year. Requires the calculators to: (1) clearly indicate which questions need to be completed for a net price estimate, (2) clearly mark requests for contact information as optional, (3) prohibit personally identifiable information from being sold or made available to third parties, and (4) clearly state that any information a user provides is confidential and that the calculator does not store responses or require personal identifying information. Authorizes the Secretary of Education to develop a universal net price calculator that enables users to answer one set of questions and receive net prices for any IHE that is required to have a net price calculator.