Summary

Requires the Secretary of Education to develop a single, standard financial aid offer form and uniform terminology so students can compare college costs and aid more easily. Colleges and universities must use that standard form and the Secretary’s standard terms for every financial aid offer (paper, mobile, or electronic) beginning with the first award year after the Secretary finalizes the form and terms.

Key Points

• Dept. of Education must create a consumer-tested, standard financial aid offer form and standard terminology.
• The form must include costs, grants, net price, loan amounts, repayment information/links, work-study info, options, and contact/process instructions.
• Colleges and universities must use the Department’s standard form and terms for all aid offers (paper, mobile, and electronic).
• Requirement takes effect at the start of the first award year after the Secretary finalizes the form and terminology.
• The Secretary must consult other federal agencies and perform consumer testing before finalizing the form.
• Private loan disclosures and dependent-student specific information are explicitly required on the form.
• Institutions will need to update systems and communications to comply, which may involve IT and administrative costs.
• The legislation streamlines comparisons across schools and aims to reduce student confusion and borrowing surprises.

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