I 
116TH CONGRESS 
1ST SESSION H. R. 2321 
To require a standard financial aid offer form, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2019 
Mr. VAN DREW introduced the following bill; which was referred to the 
Committee on Education and Labor 
A BILL 
To require a standard financial aid offer form, and for other 
purposes. 
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 2019’’. 
SEC. 2. INSTITUTION FINANCIAL AID OFFER FORM. 
Section 484 of the Higher Education Opportunity 
Act (20 U.S.C. 1092 note) is amended to read as follows: 
‘‘SEC. 484. INSTITUTION FINANCIAL AID OFFER FORM. 
‘‘(a) STANDARD FORMAT AND TERMINOLOGY.—The 
Secretary of Education, in consultation with the heads of 
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relevant Federal agencies, shall develop standard termi-
nology and a standard format for financial aid offer forms 
based on recommendations from representatives of stu-
dents, veterans, servicemembers, students’ families, insti-
tutions of higher education (including community colleges, 
for-profit institutions, four-year public institutions, and 
four-year private nonprofit institutions), financial aid ex-
perts, secondary school and postsecondary counselors, 
nonprofit organizations, and consumer groups. 
‘‘(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, a form titled ‘Financial Aid 
Offer’, which shall include the following items clearly sepa-
rated from each other with separate headings, and, if in 
paper format, listed on the first page of the financial aid 
offer form: 
‘‘(1) COST INFORMATION.— 
‘‘(A) Information on the student’s esti-
mated cost of attendance, including the fol-
lowing: 
‘‘(i) Total direct costs, including the 
component totals each for— 
‘‘(I) tuition and fees, as deter-
mined under section 472 of the High-
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er Education Act of 1965 (20 U.S.C. 
1087ll); and 
‘‘(II) college-sponsored housing 
and food costs (as determined based 
on the costs for room and board 
under such section). 
‘‘(ii) Total estimated other expenses, 
including— 
‘‘(I) the component totals each 
for housing and food costs for stu-
dents who reside off-campus; and 
‘‘(II) for all students, books, sup-
plies, transportation, and miscella-
neous personal expenses (which may 
include costs of health insurance and 
dependent care), as determined under 
section 472 of the Higher Education 
Act of 1965 (20 U.S.C. 1087ll). 
‘‘(B) An indication of the academic period 
covered by the financial aid offer, and an expla-
nation that the financial aid offered may 
change for academic periods not covered by the 
aid offer. 
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‘‘(C) An indication of whether cost and aid 
estimates are based on full-time or part-time 
enrollment. 
‘‘(D) An indication, as applicable, about 
whether the tuition and fees are estimated 
based on the previous year, or are set, for the 
academic period indicated in accordance with 
subparagraph (B). 
‘‘(2) FINANCIAL AID.—The amount and source 
of financial aid that the student does not have to 
repay, such as scholarships, grant aid offered under 
title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.), grant aid offered through 
other Federal programs, or grant aid offered by the 
institution, a State, or, if known, an outside source 
to the student for such academic period, including— 
‘‘(A) a disclosure that the financial aid 
does not have to be repaid; and 
‘‘(B) if institutional aid is included— 
‘‘(i) the conditions under which the 
student can expect to receive similar 
amounts of such financial aid for each aca-
demic period the student is enrolled at the 
institution; and 
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‘‘(ii) whether the institutional aid 
offer may change if grants or scholarships 
from outside sources are applied after the 
student receives the offer form, and, if ap-
plicable, how that aid will change. 
‘‘(3) NET PRICE.— 
‘‘(A) The net price that the student, or the 
student’s family on behalf of the student, is es-
timated to have to pay for the student to attend 
the institution for such academic period, equal 
to— 
‘‘(i) the cost of attendance as de-
scribed in paragraph (1)(A) for the stu-
dent for the period indicated in paragraph 
(1)(B); minus 
‘‘(ii) the amount of grant aid de-
scribed in paragraph (2) that is included in 
the financial aid offer form. 
‘‘(B) A disclosure that the net price is an 
estimate of the total expenses for the year and 
not equivalent to the amount the student will 
owe directly to the institution. 
‘‘(4) 
WORK-STUDY.—Information 
on 
work- 
study employment opportunities, offered in accord-
ance with part C of title IV of the Higher Education 
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Act of 1965 (20 U.S.C. 1087–51 et seq.) including 
a disclosure that the work-study aid offered is sub-
ject to the availability of qualified employment op-
portunities and is disbursed over time as earned by 
the student. Work-study employment opportunities 
(or a student’s potential income based on those op-
portunities) shall not be included in the category of 
financial aid described under paragraph (2). 
‘‘(5) LOANS.— 
‘‘(A) Information on any loan under part 
D or part E of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1087a et seq.; 20 
U.S.C. 1087aa et seq.) (except a Federal Direct 
PLUS Loan under part D of that Act) that the 
institution recommends for the student for the 
academic period covered by the offer, which 
shall be made— 
‘‘(i) with clear use of the word ‘loan’ 
to 
describe 
the 
recommended 
loan 
amounts; and 
‘‘(ii) with clear labeling of subsidized 
and unsubsidized loans. 
‘‘(B) A disclosure that such loans have to 
be repaid and a disclosure that the student can 
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borrow a lesser or, if applicable, greater amount 
than the recommended loan amount. 
‘‘(C) A disclosure that the interest rates 
and fees on such loans are set annually and af-
fect total cost over time, and a link to a De-
partment of Education website that includes 
current information on interest rates and fees. 
‘‘(D) A link to the Department of Edu-
cation’s repayment calculator website for stu-
dents with instruction that this website contains 
customizable estimates of expected repayment 
costs under different loan repayment plans. 
‘‘(6) 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. 
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‘‘(C) A disclosure that verification of finan-
cial circumstances may require the student to 
submit of 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. 
‘‘(7) 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; 
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‘‘(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) the estimated institutional charges 
that the student, or the student’s family on be-
half of the student, will have to pay directly to 
the institution for the student to attend the in-
stitution for the academic period described in 
paragraph (1)(B), equal to— 
‘‘(i) the total direct costs as described 
in paragraph (1)(A)(i) for the student for 
the period indicated in paragraph (1)(B); 
minus 
‘‘(ii) the amount of grant aid de-
scribed in paragraph (2) that is included 
on the financial aid offer form. 
‘‘(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-
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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, 
have to be repaid by the borrower, and may not 
be eligible for all the benefits available for Fed-
eral Direct Stafford Loans or Federal Direct 
Unsubsidized 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-
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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. 
‘‘(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), (4), 
and (5) of subsection (b), and a method to pro-
vide students with additional information about 
such terms and conditions, such as links to the 
supplementary information; and 
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‘‘(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. 
‘‘(2) 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 
such paragraphs and by refraining from commin-
gling the different types of aid described 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)(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 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 
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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-
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.— 
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‘‘(1) STANDARD
TERMINOLOGY.—Not later 
than 3 months after the date of enactment of the 
Understanding the True Cost of College Act of 
2019, the Secretary of Education, in consultation 
with the heads of relevant Federal agencies, includ-
ing the Secretary of the Treasury and the Director 
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 
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‘‘(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-
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 
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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 bor-
rower is ineligible for such aid. 
‘‘(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 2019, 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 information described in 
paragraphs (1) through (5) of subsection (b) is 
in the same font, appears in the same order, 
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and is displayed prominently on the first page 
of the financial aid offer form, if in paper for-
mat, or in a similarly prominent place if in elec-
tronic format, such that none of that informa-
tion is inappropriately omitted or de-empha-
sized; 
‘‘(B) that the other information required 
in subsection (b) appears in a standard format 
and design on the financial aid offer form; and 
‘‘(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 
2019, 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 
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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-
tions use the draft forms developed under para-
graph (1), including institutions— 
‘‘(i) that reflect a proportionate rep-
resentation (based on the total number of 
students enrolled in postsecondary edu-
cation) of community colleges, for-profit 
institutions, four-year public institutions, 
and four-year private nonprofit institu-
tions; and 
‘‘(ii) that reflect geographic diversity. 
‘‘(C) LENGTH OF CONSUMER TESTING.— 
The Secretary of Education shall ensure that 
the consumer testing under this paragraph lasts 
no longer than 8 months after the process for 
consumer testing is developed under subpara-
graph (A). 
‘‘(3) FINAL FORM.— 
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