Helping Students Plan for College Act of 2021
Bill: H.R.5380 | Sponsor: Rep. Kim, Andy (D-NJ)
Policy area: Education

Summary:
Helping Students Plan for College Act of 2021
This bill requires certain statements related to the impact of nonfederal financial assistance (e.g., private scholarships, grants, and loans) on financial-aid awards from an institution of higher education (IHE).
Specifically, the bill requires an IHE that participates in federal student-aid programs and adjusts its financial-aid awards based on students receiving such other financial assistance to provide enrolled and prospective students with a statement about (1) its policies on adjusting awards, and (2) how receipt of such other financial assistance may impact student eligibility for and the amount of financial-aid awards from the IHE.
The Government Accountability Office must study and report on the relationship between such other financial assistance and eligibility for and the amount of financial-aid awards from IHEs.

To require institutions of higher education to notify students of the 
     impact of private scholarships and grants on eligibility for 
          institutional financial aid, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helping Students Plan for College 
Act of 2021''.

SEC. 2. PRIVATE SCHOLARSHIP IMPACT ON INSTITUTIONAL FINANCIAL AID.

    Section 485(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1092(a)(1)) is amended--
            (1) in subparagraph (A), by inserting ``, and, in the case 
        of an institution described in subparagraph (W), a statement 
        that eligibility for such programs may be impacted by the 
        receipt of financial assistance not received under this title, 
        including all scholarships, grants, loans, or other assistance 
        known to the institution at the time the determination of the 
        student's need is made'' after ``institution'';
            (2) in subparagraph (U), by striking ``and'' at the end;
            (3) in subparagraph (V), by striking the period and 
        inserting ``; and''; and
            (4) by adding at the end the following new subparagraph:
                    ``(W) in the case of an institution that adjusts 
                awards of institutional financial aid based on student 
                receipt of financial assistance not received under this 
                title, the institutional policies on making such 
                adjustments, including scholarships, grants, loans, or 
                other assistance, and how receipt of such assistance 
                may impact eligibility for, and the amount of, 
                institutional financial aid awards.''.

SEC. 3. GAO STUDY AND REPORT.

    (a) Study.--Not later than 90 days after the date of enactment of 
this Act, the Comptroller General shall begin to conduct a study on the 
relationship between--
            (1) financial assistance not received under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 
        including scholarships, grants, loans, or other assistance; and
            (2) eligibility for, and the amount of, institutional 
        financial aid awards to students by institutions of higher 
        education, as defined in section 102 of such Act (20 U.S.C. 
        1002).
    (b) Data.--The study conducted under subsection (a) shall include 
information on--
            (1) the demographic characteristics of students who use 
        private scholarships to pay for college; and
            (2) policies of institutions of higher education for 
        accounting for private scholarships when awarding financial 
        aid, and how such policies can affect financial aid offers.
    (c) Report.--At the conclusion of the study conducted in accordance 
with this section, the Comptroller General shall submit a report on the 
results of such study to the Committee on Education and Labor of the 
House of Representatives and the Committee on Health, Education, Labor, 
and Pensions of the Senate, and shall make such report publicly 
available. Such report shall include recommendations, as appropriate, 
for legislative action to support the use of financial assistance not 
received under title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), including scholarships, grants, loans, or other 
assistance, by students to supplement, and not supplant, institutional 
financial aid awards.
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