customizable estimates of expected repayment 
costs under different loan repayment plans. 
‘‘(5) PROCESS FOR ACCEPTING OR DECLINING 
AID AND NEXT STEPS.— 
‘‘(A) The deadlines and a summary of the 
process (including the next steps) for— 
‘‘(i) accepting the financial aid offered 
in the financial aid offer form; 
‘‘(ii) requesting higher loan amounts 
if recommended loan amounts were in-
cluded; and 
‘‘(iii) declining aid offered in the 
form. 
‘‘(B) Information on when and how direct 
costs to the institution must be paid. 
‘‘(C) A disclosure that verification of finan-
cial circumstances may require the student to 
submit further documentation. 
‘‘(D) Information about where a student or 
the student’s family can seek additional infor-
mation regarding the financial aid offered, in-
cluding contact information for the institution’s 
financial aid office and the Department of Edu-
cation’s website on financial aid. 
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‘‘(6) ADDITIONAL
INFORMATION.—Any other 
information the Secretary of Education, in consulta-
tion with the heads of relevant Federal agencies, in-
cluding the Secretary of the Treasury and the Direc-
tor of the Bureau of Consumer Financial Protection, 
determines necessary (based on the results of the 
consumer testing under paragraph (g)(2)) so that 
students and parents can make informed loan bor-
rowing decisions, which may include— 
‘‘(A) the most recent cohort default rate, 
as defined in section 435(m) of the Higher 
Education Act of 1965 (20 U.S.C. 1085(m)) 
with respect to an institution where more than 
30 percent of enrolled students borrow loans to 
pay for their education, and a comparison to 
the national average cohort default rate; 
‘‘(B) the percentage of students at the in-
stitution who borrow student loans; 
‘‘(C) the median loan debt at graduation 
for students at the institution (clearly marked 
as including only Federal loans if private loan 
data are not available to be included); and 
‘‘(D) any additional calculations deter-
mined necessary for ensuring that students un-
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derstand full college costs, financial aid gaps, 
and options for covering those gaps. 
‘‘(c) OTHER REQUIRED CONTENTS FOR THE OFFER 
FORM.—The standard form developed under subsection 
(a) shall include, in addition to the information described 
in subsection (b), the following information to be included 
on the financial aid offer form in a concise format deter-
mined by the Secretary of Education, in consultation with 
the heads of relevant Federal agencies: 
‘‘(1) At the institution’s discretion— 
‘‘(A) additional options and potential re-
sources for paying for the amount listed in sub-
section (b)(3), such as tuition payment plans; 
and 
‘‘(B) a disclosure that Federal Direct 
PLUS Loans or private education loans may be 
available to cover remaining need, except that 
the institution may not include an amount for 
Federal Direct PLUS Loans or private edu-
cation loans and must include a disclosure for 
Federal Direct PLUS Loans that such loans 
are subject to an additional application process, 
and a disclosure that both types of loans have 
to be repaid by the borrower, and may not be 
eligible for all the benefits available for Federal 
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Direct Stafford Loans or Federal Direct Un-
subsidized Stafford Loans. 
‘‘(2) The following information relating to pri-
vate student loans: 
‘‘(A) A statement that students consid-
ering borrowing to cover the cost of attendance 
should consider available Federal student loans 
prior to applying for private education loans, in-
cluding an explanation that Federal student 
loans offer generally more favorable terms and 
beneficial repayment options than private loans. 
‘‘(B) The impact of a proposed private 
education loan on the student’s potential eligi-
bility for other financial assistance, including 
Federal financial assistance under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.). 
‘‘(C) A statement explaining the student’s 
ability to select a private educational lender of 
the student’s choice. 
‘‘(3) Information on work-study employment 
opportunities, offered in accordance with part C of 
title IV of the Higher Education Act of 1965 (20 
U.S.C. 1087–51 et seq.) including a disclosure that 
the work-study aid offered is subject to the avail-
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ability of qualified employment opportunities and is 
disbursed over time as earned by the student. Work- 
study employment opportunities (or a student’s po-
tential income based on those opportunities) shall 
not be included in the category of financial aid de-
scribed under subsection (b)(2). 
‘‘(d) ADDITIONAL REQUIREMENTS FOR FINANCIAL 
AID OFFER FORM.—The financial aid offer form shall 
meet the following requirements: 
‘‘(1) Include, in addition to the requirements 
described in subsections (b) and (c), a concise sum-
mary, in plain language, of— 
‘‘(A) the terms and conditions of financial 
aid recommended under paragraphs (2) and (4) 
of subsection (b) and subsection (c)(3), and a 
method to provide students with additional in-
formation about such terms and conditions, 
such as links to the supplementary information; 
and 
‘‘(B) Federal, State, or institutional condi-
tions required to receive and renew financial aid 
and a method to provide students with addi-
tional information about these conditions, such 
as links to the supplementary information. 
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‘‘(2) Clearly distinguish between the aid offered 
under paragraphs (2) and (4) of subsection (b) and 
subsection (c)(3), by including a subtotal for the aid 
offered in each of such paragraphs and by refraining 
from commingling the different types of aid de-
scribed in such paragraphs. 
‘‘(3) Use standard terminology and definitions, 
as described in subsection (e)(1) and use plain lan-
guage where possible. 
‘‘(4) If an institution’s recommended Federal 
student loan aid offered in subsection (b)(4) is less 
than the Federal maximum available to the student, 
the institution shall provide additional information 
on Federal student loans, including the types and 
amounts for which the student is eligible in an at-
tached document or webpage. 
‘‘(5) Use the standard offer form described in 
subsection (e)(2). 
‘‘(6) Include the standardized statement regard-
ing the possible availability of Federal education 
benefits, as established by the Secretary in accord-
ance with subsection (e)(3). 
‘‘(7) Include a delivery confirmation for elec-
tronic financial aid offer forms, except that receipt 
of the financial aid offer form shall not be consid-
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ered an acceptance or rejection of aid by the stu-
dent. 
‘‘(8) With respect to dependent students, any 
reference to private education loans shall be accom-
panied by— 
‘‘(A) information about the availability of, 
and terms and conditions associated with, Fed-
eral Direct PLUS Loans under section 455 of 
the Higher Education Act of 1965 (20 U.S.C. 
1087e) for the student’s parents regardless of 
family income; and 
‘‘(B) a notification of the student’s in-
creased eligibility for Federal student loans 
under title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070 et seq.) if the student’s 
parents are not able to borrow under the Fed-
eral Direct PLUS Loan program. 
‘‘(e) STANDARD INFORMATION ESTABLISHED
BY 
THE SECRETARY.— 
‘‘(1) STANDARD
TERMINOLOGY.—Not later 
than 3 months after the date of enactment of the 
Understanding the True Cost of College Act of 
2023, the Secretary of Education, in consultation 
with the heads of relevant Federal agencies, includ-
ing the Secretary of the Treasury and the Director 
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of the Consumer Financial Protection Bureau, rep-
resentatives of institutions of higher education, non-
profit consumer groups, students, and secondary 
school and higher education guidance counselors, 
shall establish standard terminology and definitions 
for the terms described in subsection (b). 
‘‘(2) STANDARD FORM.— 
‘‘(A) IN GENERAL.—The Secretary of Edu-
cation shall develop multiple draft financial aid 
offer forms for consumer testing, carry out con-
sumer testing for such forms, and establish a fi-
nalized standard financial aid offer form, in ac-
cordance with the process established in sub-
section (g) and the requirements of this section. 
‘‘(B) SEPARATE
FINANCIAL
AID
OFFER 
FORMS.—The Secretary may develop separate 
financial aid offer forms for— 
‘‘(i) undergraduate students and grad-
uate students; and 
‘‘(ii) first-time students and returning 
students. 
‘‘(3) ADDITIONAL BENEFITS.—The Secretary of 
Education, in consultation with the heads of relevant 
Federal agencies, including the Secretary of the 
Treasury, the Secretary of Veterans Affairs, the Sec-
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retary of Defense, and the Director of the Consumer 
Financial Protection Bureau, shall establish stand-
ard language notifying students that they may be el-
igible for education benefits (and where students can 
locate more information about such benefits,) includ-
ing benefits in accordance with each of the following: 
‘‘(A) Chapter 30, 31, 32, 33, 34, or 35 of 
title 38, United States Code. 
‘‘(B) Chapter 101, 105, 106A, 1606, 1607, 
or 1608 of title 10, United States Code. 
‘‘(C) Section 1784a, 2005, or 2007 of title 
10, United States Code. 
‘‘(f) SUPPLEMENTAL INFORMATION; REMOVAL
OF 
INFORMATION.— 
‘‘(1) Nothing in this section shall preclude an 
institution from supplementing the financial aid 
offer form with additional information if such addi-
tional information supplements the financial aid 
offer form and is not located on the financial aid 
offer form, and provided such information utilizes 
the same standard terminology identified in sub-
section (e)(1). 
‘‘(2) Nothing in this section shall preclude an 
institution from deleting a required item if the stu-
dent is ineligible for such aid. 
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‘‘(g) DEVELOPMENT
OF FINANCIAL AID OFFER 
FORM.— 
‘‘(1) DRAFT FORM.—Not later than 9 months 
after the date of enactment of the Understanding 
the True Cost of College Act of 2023, the Secretary 
of Education, in consultation with the heads of rel-
evant Federal agencies, including the Secretary of 
the Treasury and the Director of the Consumer Fi-
nancial Protection Bureau, representatives of insti-
tutions of higher education, nonprofit consumer 
groups, students, and secondary school and higher 
education guidance counselors, shall design and 
produce multiple draft financial aid offer forms for 
consumer testing with postsecondary students or 
prospective students. In developing that form, the 
Secretary shall ensure— 
‘‘(A) that the headings described in para-
graphs (1) through (4) of subsection (b) is in 
the same font, appears in the same order, and 
is displayed prominently on the financial aid 
offer form, such that none of that information 
is inappropriately omitted or de-emphasized; 
‘‘(B) that the other information required 
in subsection (b) appears in a standard format 
and design on the financial aid offer form; and 
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‘‘(C) that the institution may include a 
logo or brand alongside the title of the financial 
aid offer form. 
‘‘(2) CONSUMER TESTING.— 
‘‘(A) IN
GENERAL.—Not later than 9 
months after the date of enactment of the Un-
derstanding the True Cost of College Act of 
2023, the Secretary of Education, in consulta-
tion with the heads of relevant Federal agen-
cies, shall establish a process to submit the fi-
nancial aid offer form drafts developed under 
paragraph (1) for consumer testing among rep-
resentatives of students (including low-income 
students, first generation college students, adult 
students, veterans, servicemembers, and pro-
spective students), students’ families (including 
low-income families, families with first genera-
tion college students, and families with prospec-
tive students), institutions of higher education, 
secondary school and postsecondary counselors, 
and nonprofit consumer groups. 
‘‘(B) PILOT.—During such consumer test-
ing, the Secretary shall ensure that not less 
than 16 and not more than 24 eligible institu-
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