SEC. 2. FINANCIAL AID OFFERS. 
Section 485 of the Higher Education Act of 1965 (20 
U.S.C. 1092) is amended by adding at the end the fol-
lowing: 
‘‘(n) FINANCIAL AID OFFERS.— 
‘‘(1) INSTITUTIONAL
REQUIREMENTS.—Begin-
ning with the first award year that begins not less 
than 1 year after the Secretary publishes require-
ments under subparagraph (2), each institution of 
higher education participating in any program under 
this title shall provide to each enrolled student (and 
prospective student accepted for enrollment) at such 
institution who applies for financial assistance under 
this title, a financial aid offer that— 
‘‘(A) shall comply with the requirements 
published by the Secretary under paragraph 
(2); and 
‘‘(B) may be supplemented by the institu-
tion with additional, non-contradictory informa-
tion related to financial aid as long as such sup-
plementary information uses the standardized 
terms and definitions described in paragraph 
(2). 
‘‘(2) SECRETARIAL REQUIREMENTS.—Not later 
than 18 months after the date of enactment of the 
College Cost Transparency and Student Protection 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
Act, the Secretary shall, based on the consumer test-
ing conducted under paragraph (4), publish require-
ments for financial aid offers to be used by institu-
tions of higher education under paragraph (1), 
which shall— 
‘‘(A) serve as the primary source for Fed-
eral, State, and institutional financial aid infor-
mation provided by an institution of higher edu-
cation participating in any program under this 
title to each enrolled student (and prospective 
student accepted for enrollment) at such insti-
tution; 
‘‘(B) include a requirement that no finan-
cial aid offer may be referred to as an award 
letter; 
‘‘(C) include the required content described 
in paragraph (3); 
‘‘(D) establish standardized terms and 
definitions, including for the required content 
described in paragraph (3), which shall be in-
cluded in each financial aid offer; and 
‘‘(E) establish formatting requirements 
with respect to the organization of the contents 
described in paragraph (3), which— 
‘‘(i) shall include— 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(I) a requirement that prohibits 
any such offer from displaying loans 
in a manner that indicates or implies 
that such loans reduce the amount 
owed to the institution or reduce the 
out-of-pocket costs; and 
‘‘(II) requirements that ensure 
that before completing the component 
of an offer relating to indirect costs, 
a student completes the component of 
an offer relating to direct costs and 
confirms that such student is seeking 
financial assistance for indirect costs; 
and 
‘‘(ii) may not establish, or require 
that institutions of higher education use, a 
uniform format for such offers. 
‘‘(3) REQUIRED
CONTENT
FOR
A
FINANCIAL 
AID OFFER.— 
‘‘(A) IN GENERAL.—An institution of high-
er education shall provide, to each enrolled stu-
dent (and prospective student accepted for en-
rollment) at such institution who applies for fi-
nancial assistance under this title, a financial 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
aid offer for an academic period covered by 
such offer, which shall include the following: 
‘‘(i) A component relating to the di-
rect costs for such student for such aca-
demic period, which shall include the con-
tent described in subparagraphs (B) and 
(D). 
‘‘(ii) In a case in which the student 
completes the component described in 
clause (i) and confirms that such student 
is seeking financial assistance for indirect 
costs for such academic period, a compo-
nent relating to such indirect costs, which 
shall include the content described in sub-
paragraphs (C) and (D). 
‘‘(B) COMPONENT FOR DIRECT COSTS.— 
The component of a financial aid offer relating 
to direct costs shall include the following con-
tent: 
‘‘(i) ESTIMATED
SUM
OF
DIRECT 
COSTS.—The estimated sum of the stu-
dent’s direct costs for the academic period 
covered by such offer, which shall be the 
sum of— 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(I) the cost of tuition and fees, 
as defined in section 472(a)(1), as 
amended by section 702 of the 
FAFSA Simplification Act; and 
‘‘(II) any other required ex-
penses, as determined by the institu-
tion and presented as an itemized list. 
‘‘(ii) GRANTS AND SCHOLARSHIPS.— 
‘‘(I) IN
GENERAL.—The aggre-
gate amount of grants and scholar-
ships by source that the student does 
not have to repay, such as grant aid 
offered under this title and grant aid 
offered through other Federal pro-
grams, grant aid offered by the insti-
tution, grant aid offered by the State, 
and, if known, grant aid from an out-
side source for such academic period. 
‘‘(II) FEDERAL
GRANT
AID.— 
With respect to Federal grant aid, the 
conditions under which the student 
can expect to receive similar amounts 
of such Federal grant aid for each 
academic period the student is en-
rolled at the institution. 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(III) 
INSTITUTIONAL
GRANT 
AID.—With respect to institutional 
grant aid— 
‘‘(aa) the conditions under 
which the student can expect to 
receive similar amounts of such 
institutional grant aid for each 
academic period the student is 
enrolled at the institution; and 
‘‘(bb) whether the institu-
tional grant aid offer may change 
if grants or scholarships from 
outside sources are applied after 
the student receives the financial 
aid offer, and, if applicable, how 
that institutional grant aid will 
change. 
‘‘(IV) 
INDIRECT
COSTS.—An 
identification of any grants or scholar-
ships described in subclause (I) that 
are required to be used for any indi-
rect costs selected by the student 
under subparagraph (C)(i). 
‘‘(iii) OUT-OF-POCKET COSTS (RELAT-
ING TO DIRECT COSTS).—The out-of-pocket 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
costs (relating to direct costs) that the stu-
dent, or the student’s family on behalf of 
the student, is estimated to have to pay for 
the student to attend the institution for 
such academic period, equal to— 
‘‘(I) the estimated sum of the 
student’s direct costs described in 
clause (i); minus 
‘‘(II) the aggregate amount of 
grants and scholarships described in 
clause (ii) that may be used to cover 
such direct costs. 
‘‘(iv) FINANCING OPTIONS.— 
‘‘(I) IN GENERAL.—In plain lan-
guage and based on consumer testing 
under paragraph (4), the offer shall 
include the following financing options 
(in the following order) to cover the 
total out-of-pocket costs determined 
under clause (iii): 
‘‘(aa) Cash or other personal 
resources, including the expected 
family contribution of the stu-
dent. 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(bb) Loans made to the 
student under part D (excluding 
Federal Direct PLUS Loans), 
which shall— 
‘‘(AA) 
clearly 
label 
whether the loan is sub-
sidized or unsubsidized; and 
‘‘(BB) require the stu-
dent to (1) accept any such 
loan by specifying the loan 
amount the student is ac-
cepting (which may be an 
amount that is less than the 
maximum amount for which 
such 
student 
is 
eligible 
under part D) or (2) decline 
any such loan. 
‘‘(cc) Work-study employ-
ment opportunities, offered in ac-
cordance with part C, and other 
campus employment, if applica-
ble, which shall require the stu-
dent to (1) accept any such op-
portunity or (2) decline any such 
opportunity. 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(II) DISCLOSURES RELATED TO 
COVERED FINANCING OPTIONS.—The 
following disclosures, in a simple, 
plain-language, and consumer-friendly 
manner (based on the consumer test-
ing under paragraph (4)): 
‘‘(aa) GRANTS AND SCHOL-
ARSHIPS.—Grants and scholar-
ships do not have to be repaid. 
‘‘(bb) 
ALL
LOANS.—All 
loans must be repaid with inter-
est. 
‘‘(cc) 
FEDERAL
WORK- 
STUDY
AID.—Any 
work-study 
employment opportunity offered 
under part C is subject to the 
availability of qualified employ-
ment opportunities and is dis-
bursed over time as earned by 
the student. 
‘‘(III) DISCLOSURE RELATED TO 
OTHER FINANCING OPTIONS.—A dis-
closure that other financing options 
(not listed in subclause (I)) may be 
available, including private education 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
loans, Federal Direct PLUS loans, or 
institutional or State loans, if applica-
ble. 
‘‘(IV) 
TUITION
PAYMENT 
PLANS.—In plain language, the offer 
shall include information on tuition 
payment plans, if applicable. 
‘‘(v) DISCLOSURE AND CONFIRMATION 
RELATING TO INDIRECT COSTS.—A disclo-
sure that the financing options for indirect 
costs selected by the student under sub-
paragraph (C)(i) may include loans that 
must be repaid with interest, and a re-
quirement for the student to confirm 
whether the student is seeking financial as-
sistance for such indirect costs. 
‘‘(C) COMPONENT FOR INDIRECT COSTS.— 
The component of a financial aid relating to in-
direct costs shall include the following content: 
‘‘(i) 
SELECTION
OF
INDIRECT 
COSTS.—The student shall have the ability 
to select each component of the cost of at-
tendance under section 472, as amended 
by section 702 of the FAFSA Simplifica-
tion Act (other than the direct costs deter-
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
mined under subparagraph (B)(i)) for 
which the student needs support for the 
academic period covered by the offer, 
which may include components relating to 
housing and food, books and supplies, 
transportation, and miscellaneous personal 
expenses. 
‘‘(ii) ESTIMATED
SUM
OF
INDIRECT 
COSTS.—The estimated sum of the stu-
dent’s indirect costs for the academic pe-
riod covered by such offer, as determined 
by the sum of each of the components of 
indirect costs selected under clause (i). 
‘‘(iii) GRANTS AND SCHOLARSHIPS.— 
Any amounts of the grants and scholar-
ships 
identified 
under 
subparagraph 
(B)(ii), which— 
‘‘(I) remain available after fi-
nancing the direct costs determined 
under subparagraph (B)(i); or 
‘‘(II) are required to be used for 
indirect costs, as described in sub-
clause (II) of subparagraph (B)(ii). 
‘‘(iv) OUT-OF-POCKET COSTS (RELAT-
ING
TO
INDIRECT
COSTS).—The out-of- 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
pocket costs (relating to indirect costs) 
that the student, or the student’s family on 
behalf of the student, is estimated to have 
to pay for the student to attend the insti-
tution for such academic period, equal to— 
‘‘(I) the estimated sum of indi-
rect costs determined under clause 
(ii); minus 
‘‘(II) the amount of grants and 
scholarships determined under clause 
(iii). 
‘‘(v) TOTAL COST OF ATTENDANCE.— 
The total cost of attendance for the stu-
dent, equal to the sum of— 
‘‘(I) the estimated sum of the 
student’s direct costs determined sub-
paragraph (B)(i); and 
‘‘(II) the estimated sum of the 
student’s indirect costs determined 
under clause (ii). 
‘‘(vi) 
TOTAL
OUT-OF-POCKET 
COSTS.—The total out-of-pocket costs that 
the student, or the student’s family on be-
half of the student, is estimated to have to 
pay for the student to attend the institu-
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
tion for such academic period, equal to the 
sum of— 
‘‘(I) the out-of-pocket costs (re-
lating to direct costs) determined 
under subparagraph (B)(iii); and 
‘‘(II) the out-of-pocket costs (re-
lating to indirect costs) determined 
under clause (iv). 
‘‘(vii) FINANCING OPTIONS.—In plain 
language, the offer shall include— 
‘‘(I) each of the financing options 
listed under subparagraph (B)(iv)(I), 
which remain available after financing 
the direct costs determined under sub-
paragraph (B)(i); and 
‘‘(II) the disclosures described in 
subclauses (II) and (III) of subpara-
graph (B)(iv). 
‘‘(D) REQUIRED
CONTENTS
FOR
BOTH 
COMPONENTS.—Each component of the offer 
described in clauses (i) and (ii) of subparagraph 
(A) shall include the following content: 
‘‘(i) ACADEMIC
PERIOD.—An indica-
tion of the academic period covered by the 
financial aid offer, an explanation that the 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
financial aid offered may change for aca-
demic periods not covered by the aid offer 
or by program, and an indication, as appli-
cable, about whether the costs identified 
under such offer are estimated based on 
the previous year, or are set, for the aca-
demic period covered by such offer. 
‘‘(ii) ENROLLMENT
INTENSITY.—An 
indication of whether cost and aid esti-
mates are based on full-time or part-time 
enrollment. 
‘‘(iii) INSTITUTIONAL GRANT AID.—In 
the case of an institution of higher edu-
cation that adjusts awards of institutional 
grant aid based on student receipt of fi-
nancial assistance not received under this 
title— 
‘‘(I) a statement that eligibility 
for institutional grant aid may be im-
pacted by the receipt of financial as-
sistance not received under this title 
(including all scholarships, grants, 
loans, or other assistance known to 
the institution at the time the deter-
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
mination of the student’s need is 
made); and 
‘‘(II) the institutional policies re-
lating to how receipt of such assist-
ance may impact eligibility for, and 
the amount of, institutional grant aid. 
‘‘(iv) NEXT
STEP
INSTRUCTIONS.— 
Next step instructions, including— 
‘‘(I) the process and deadlines for 
accepting (and declining) the financial 
aid offered in the offer; and 
‘‘(II) information about where to 
find additional information on the fi-
nancial aid offered, including contact 
information for the institution’s finan-
cial aid office and the Department of 
Education’s website on financial aid. 
‘‘(v) STATISTICS
ON
POST
COMPLE-
TION EARNINGS AND LOAN REPAYMENT.— 
‘‘(I) 
IN
GENERAL.—Statistics 
(which may be presented as monthly 
amounts) on the median earnings and 
median payments on loans made 
under part D (excluding Federal Di-
rect PLUS Loans), for graduates of, 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
or individuals who complete, the pro-
gram for which the student receiving 
the financial aid offer is enrolled (or, 
in a case in which the student has not 
selected a program of study, for the 
institution). 
‘‘(II) DISCLOSURE.—Any statis-
tics provided under this clause shall 
include a disclosure that such statis-
tics may not apply to the student re-
ceiving the offer. 
‘‘(vi) INFORMATION FOR PROSPECTIVE 
STUDENTS.—In the case of a prospective 
student, the process and deadlines for en-
rolling at the institution, if such informa-
tion is determined necessary by the Sec-
retary based on the consumer testing con-
ducted under paragraph (4). 
‘‘(vii) DELIVERY
CONFIRMATION.— 
Include a delivery confirmation for elec-
tronic financial aid offer forms, except that 
receipt of the forms shall not be considered 
an acceptance or rejection of aid. 
‘‘(4) 
CONSUMER
TESTING.—The 
Secretary 
shall— 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(A) conduct consumer testing that shall— 
‘‘(i) serve as the basis in determining 
the requirements for financial aid offers 
published under paragraph (2); and 
‘‘(ii) include students (including low- 
income students, English learners, first 
generation college students, veteran stu-
dents, graduate students, and under-
graduate students (including prospective 
students and returning students)), stu-
dents’ families (including low-income fami-
lies, families of English learners, and fami-
lies with first generation college students), 
institutions of higher education (including 
representatives from two- and four-year in-
stitutions, public and private institutions, 
and minority-serving institutions), sec-
ondary school and postsecondary coun-
selors, financial aid administrators, non-
profit college access organizations, and 
nonprofit consumer groups; and 
‘‘(B) not later than 60 days after the pub-
lication of the requirements under paragraph 
(2)— 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(i) issue a report on the findings of 
the consumer testing under this paragraph; 
and 
‘‘(ii) specify ways in which the find-
ings are reflected in such requirements. 
‘‘(5) DATA
REPORTING.—Not later than 18 
months after the date of enactment of the College 
Cost Transparency and Student Protection Act, the 
Secretary shall ensure that information published on 
the College Scorecard website of the Department (or 
any successor website), or the website of each insti-
tution of higher education participating in any pro-
gram under this title— 
‘‘(A) with respect to the net price or the 
cost of attendance of an institution of higher 
education, provides separate cost estimates for 
direct costs and indirect costs, in a manner con-
sist with the standard terms and definitions 
published under paragraph (2); and 
‘‘(B) with respect to the median earnings 
or median payments on loans made under this 
title for students who complete a program of 
study at an institution of higher education, pro-
vides such information in a manner consistent 
with paragraph (3)(D)(v). 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(6) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘cost of attendance’ has the 
meaning given the term in section 472; 
‘‘(B) the term ‘direct costs’, used with re-
spect to a student, means the costs determined 
under paragraph (3)(B)(i) for such student; 
‘‘(C) the term ‘English learner’ has the 
meaning given the term in section 8101(20) of 
the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7801(20)), except that such 
term does not include individuals described in 
subparagraph (B) of such section; 
‘‘(D) the term ‘first generation college stu-
dent’ has the meaning given the term in section 
402A(h); 
‘‘(E) the term ‘indirect costs’, used with 
respect to a student, means the costs deter-
mined under paragraph (3)(C)(ii) for such stu-
dent; 
‘‘(F) the term ‘low-income student’ has the 
meaning given the term in section 419N(b)(7); 
‘‘(G) the term ‘minority-serving institution’ 
means an institution of higher education de-
scribed in section 371(a); and 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(H) the term ‘private education loan’ has 
the meaning given the term in section 140 of 
the Truth in Lending Act.’’. 
Æ 
VerDate Sep 11 2014 
17:32 Dec 14, 2022
Jkt 039200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6301
E:\BILLS\H9429.IH
H9429
pamtmann on DSKBC07HB2PROD with BILLS