I 
112TH CONGRESS 
2D SESSION 
H. R. 6506 
To amend the Higher Education Opportunity Act to add disclosure require-
ments to the institution financial aid offer form and to amend the 
Higher Education Act of 1965 to make such form mandatory. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2012 
Mr. COURTNEY (for himself, Mr. TIERNEY, Mr. TONKO, Ms. NORTON, Ms. 
BORDALLO, Mr. QUIGLEY, Mr. LARSON of Connecticut, Mr. CARSON of 
Indiana, Ms. WOOLSEY, Mr. LARSEN of Washington, Mr. BRALEY of 
Iowa, and Mr. MURPHY of Connecticut) introduced the following bill; 
which was referred to the Committee on Education and the Workforce 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Understanding the 
True Cost of College Act of 2012’’. 
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SEC. 2. INSTITUTION FINANCIAL AID OFFER FORM. 
(a) INSTITUTION FINANCIAL AID OFFER FORM.— 
Section 484 of the Higher Education Opportunity Act (20 
U.S.C. 1092 note) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) STANDARD FORMAT.—The Secretary of Edu-
cation, in consultation with the heads of relevant Federal 
agencies, shall develop a standard format for financial aid 
offer forms based on recommendations from representa-
tives of students, students’ families, institutions of higher 
education, secondary school and postsecondary counselors, 
and nonprofit consumer groups.’’; 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) KEY
REQUIRED
CONTENTS
FOR
OFFER 
FORM.—The standard format developed under subsection 
(a) shall include, in a consumer-friendly manner that is 
simple and understandable, the following items clearly sep-
arated from each other and listed on the first page of the 
financial aid offer form in either electronic or written for-
mat: 
‘‘(1) Information on the student’s cost of at-
tendance based on the most current costs for the 
academic period covered by the financial aid offer 
form, including the following: 
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‘‘(A) Tuition and fees, as determined 
under section 472 of the Higher Education Act 
of 1965 (20 U.S.C. 1087ll). 
‘‘(B) Room and board costs, as determined 
under section 472 of the Higher Education Act 
of 1965 (20 U.S.C. 1087ll). 
‘‘(C) Books and supplies, as determined 
under section 472 of the Higher Education Act 
of 1965 (20 U.S.C. 1087ll). 
‘‘(D) Transportation, as determined under 
section 472 of the Higher Education Act of 
1965 (20 U.S.C. 1087ll). 
‘‘(E) Miscellaneous personal expenses, as 
determined under section 472 of the Higher 
Education Act of 1965 (20 U.S.C. 1087ll). 
‘‘(2) The amount of financial aid that the stu-
dent does not have to repay, such as scholarships, 
grant aid offered under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), or 
grant aid offered by the institution, a State, or an 
outside source to the student for such academic pe-
riod, including a disclosure that the financial aid 
does not have to be repaid and whether the student 
can expect to receive similar amounts of such finan-
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cial aid for each academic period the student is en-
rolled at the institution. 
‘‘(3) The net amount that the student, or the 
student’s family on behalf of the student, will have 
to pay for the student to attend the institution for 
such academic period, equal to— 
‘‘(A) the cost of attendance as described in 
paragraph (1) for the student for such aca-
demic period, minus 
‘‘(B) the amount of financial aid described 
in paragraph (2) that is included in the finan-
cial aid offer form. 
‘‘(4) Work study assistance, including a disclo-
sure that the aid must be earned by the student and 
a disclosure that the assistance offered is subject to 
the availability of employment opportunities. 
‘‘(5) The types and amounts of loans under 
part D or E of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1087a et seq., 1087aa et seq.) 
that the institution recommends for the student for 
such academic period, a disclosure that such loans 
have to be repaid, a disclosure that the student can 
borrow a lesser amount than the recommended loan 
amount, a clear use of the word ‘loan’ to describe 
the recommended loan amounts, the interest rates, 
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fees, the expected monthly repayment amounts as-
suming a 10-year repayment plan, and the total 
amounts the student will pay over the life of the 
loans. 
‘‘(6) Where a student or the student’s family 
can seek additional information regarding the finan-
cial aid offered, including contact information for 
the institution’s financial aid office and the Depart-
ment of Education’s Web site on financial aid. 
‘‘(7) A disclosure that Federal student loans 
offer generally more favorable terms and beneficial 
repayment options than private education loans so 
students should examine available Federal student 
loan options before applying for private education 
loans, and an explanation to be written by the Sec-
retary of Education, in consultation with the heads 
of relevant Federal agencies, of the benefits unique 
to Federal student loans, including various repay-
ment plans, loan forgiveness, and loan deferment, 
and the terms to examine carefully if considering a 
private education loan. 
‘‘(8) The deadline and summary of the process, 
if any, for accepting the financial aid offered in the 
financial aid offer form. 
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‘‘(9) The academic period covered by the finan-
cial aid offer form and a clear indication whether the 
aid offered is based on full-time or part-time enroll-
ment. 
‘‘(10) With respect to institutions where more 
than 30 percent of enrolled students borrow loans to 
pay for their education, the institution’s most recent 
cohort default rate, as defined in section 435(m) of 
the Higher Education Act of 1965 (20 U.S.C. 
1085(m)), compared to the national average cohort 
default rate. 
‘‘(11) Any other information the Secretary of 
Education, in consultation with the heads of relevant 
Federal agencies, determines necessary so that stu-
dents and parents can make informed loan bor-
rowing decisions, including quality metrics such as 
percentage of students at the institution who take 
out student loans and average debt at graduation for 
students at the institution.’’; and 
(3) by adding at the end the following: 
‘‘(c) OTHER REQUIRED CONTENTS FOR THE OFFER 
FORM.—The standard format developed under subsection 
(a) shall also include the following information to be in-
cluded on the financial aid offer form in a concise format 
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determined by the Secretary of Education, in consultation 
with the heads of relevant Federal agencies: 
‘‘(1) A concise summary of the terms and con-
ditions of financial aid recommended under para-
graphs (2), (4), and (5) of subsection (b) and a 
method to provide students with additional informa-
tion about such terms and conditions, such as links 
to the supplementary information, including that the 
student may be eligible for longer loan repayment 
terms. 
‘‘(2) At the institution’s discretion, additional 
options for paying for the net amount listed in sub-
section (b)(3), such as the amount recommended to 
be paid by the student or student’s family, Federal 
Direct PLUS Loans under section 455 of the High-
er Education Act of 1965 (20 U.S.C. 1087e), or pri-
vate education loans. If the institution recommends 
private education loans, as defined in section 140 of 
the Truth in Lending Act (15 U.S.C. 1650), the fi-
nancial aid offer form shall contain the additional 
following disclosures on the offer form: 
‘‘(A) The availability of, and the student’s 
potential eligibility for, Federal financial assist-
ance under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.). 
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‘‘(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) The student’s ability to select a pri-
vate educational lender of the student’s choice. 
‘‘(D) The student’s right to accept or re-
ject a private education loan within the 30-day 
period following a private educational lender’s 
approval of a student’s application and a stu-
dent’s 3-day right-to-cancel period. 
‘‘(E) With respect to dependent students, 
any reference to private education loans shall be 
accompanied by information about the rec-
ommended family contribution and the avail-
ability of, and terms and conditions associated 
with, Federal Direct PLUS Loans under sec-
tion 455 of the Higher Education Act of 1965 
(20 U.S.C. 1087e) for the student’s parents re-
gardless of family income, and of the student’s 
increased 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 
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parents are not able to borrow under the Fed-
eral Direct PLUS Loan program. 
‘‘(3) The following disclosures: 
‘‘(A) That the financial aid offer form only 
contains information for 1 academic period and 
the financial aid offered in following academic 
periods may change, unless the institution is of-
fering aid that covers multiple academic peri-
ods. 
‘‘(B) How non-institutional scholarships 
awarded to the student affect the financial aid 
package offered to the student. 
‘‘(C) A concise summary of any Federal or 
institutional conditions required to receive and 
renew financial aid and a method to provide 
students with additional information about 
these conditions, such as links to the supple-
mentary information. 
‘‘(d) ADDITIONAL REQUIREMENTS FOR FINANCIAL 
AID OFFER FORM.—In addition to the requirements listed 
under subsections (b) and (c), the financial aid offer form 
shall meet the following requirements: 
‘‘(1) Clearly distinguish between the aid offered 
in paragraphs (2), (4), and (5) of subsection (b), by 
including a subtotal for the aid offered in each of 
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such paragraphs and by refraining from commin-
gling the different types of aid described in such 
paragraphs. 
‘‘(2) Use standard definitions and names for 
the terms described in subsection (b) that are devel-
oped by the Secretary of Education in consultation 
with the heads of relevant Federal agencies, rep-
resentatives of institutions of higher education, non-
profit consumer groups, students, and secondary 
school and higher education guidance counselors, not 
later than 3 months after the date of enactment of 
the Understanding the True Cost of College Act of 
2012. 
‘‘(3) If an institution’s recommended Federal 
student loan aid offered in subsection (b)(5) 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 Web page. 
‘‘(4) Use standard formatting and design that 
the Secretary of Education, in consultation with the 
heads of relevant Federal agencies, representatives 
of institutions of higher education, nonprofit con-
sumer groups, students, and secondary school and 
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higher education guidance counselors determine is 
appropriate to produce multiple draft financial aid 
offer designs for consumer testing not later than 3 
months after the date of enactment of the Under-
standing the True Cost of College Act of 2012 to en-
sure— 
‘‘(A) that figures described in paragraphs 
(1) through (5) of subsection (b) are in the 
same font, appear in the same order, and are 
displayed prominently on the first page of the 
financial aid offer form whether produced in 
written or electronic format; and 
‘‘(B) that the other information required 
in (b) and (c) appears in a standard format and 
design on the financial aid offer form. 
‘‘(5) Include an attestation that the student has 
accessed and read the financial aid offer form, if 
provided to the student in electronic format. 
‘‘(6) Include language developed by the Sec-
retary of Education, in consultation with the heads 
of relevant Federal agencies, notifying eligible stu-
dents that they may be eligible for education bene-
fits, and where they can locate more information 
about such benefits, described in the following provi-
sions: 
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‘‘(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. 
‘‘(e) ADDITIONAL INFORMATION.—Nothing in this 
section shall preclude an institution from supplementing 
the financial aid offer form with additional information so 
long as such additional information supplements the fi-
nancial aid offer form and is not located on the financial 
aid offer form. 
‘‘(f) CONSUMER TESTING.— 
‘‘(1) IN GENERAL.—Not later than 3 months 
after the date of enactment of the Understanding 
the True Cost of College Act of 2012, the Secretary 
of Education, in consultation with the heads of rel-
evant Federal agencies, shall establish a process to 
submit the financial aid offer form developed under 
this section for consumer testing among representa-
tives 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 stu-
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dents), institutions of higher education, secondary 
school and postsecondary counselors, and nonprofit 
consumer groups. 
‘‘(2) LENGTH
OF
CONSUMER
TESTING.—The 
Secretary of Education shall ensure that the con-
sumer testing lasts no longer than 6 months after 
the process for consumer testing is developed under 
paragraph (1). 
‘‘(3) USE OF RESULTS.—The results of con-
sumer testing under paragraph (1) shall be used in 
the final development of the financial aid offer form. 
‘‘(4) REPORTING
REQUIREMENT.—Not later 
than 3 months after the date the consumer testing 
under paragraph (1) concludes, the Secretary of 
Education shall submit to Congress the final stand-
ard financial aid offer form and a report detailing 
the results of such testing, including whether the 
Secretary added any additional items to the stand-
ard financial aid offer form pursuant to subsection 
(b)(10). 
‘‘(5) AUTHORITY TO MODIFY.—The Secretary 
of Education may modify the definitions, terms, for-
matting, and design of the financial aid offer form 
based on the results of consumer testing required 
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under this subsection and before finalizing the 
form.’’. 
(b) MANDATORY FORM.—Part B of title I of the 
Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 124. USE OF MANDATORY FINANCIAL AID OFFER 
FORM. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, each institution of higher education that re-
ceives Federal financial assistance under this Act shall use 
the financial aid offer form developed under section 484 
of the Higher Education Opportunity Act (20 U.S.C. 1092 
note) in providing written or electronic financial aid offers 
to students enrolled in, or accepted for enrollment in, the 
institution. 
‘‘(b) EFFECTIVE DATE.—The requirement under 
subsection (a) shall take effect 8 months after the Sec-
retary of Education finalizes the offer form developed 
under section 484(a) of the Higher Education Oppor-
tunity Act (20 U.S.C. 1092 note).’’. 
Æ 
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