College Cost Transparency and Student Protection Act

College Cost Transparency and Student Protection Act

This bill outlines requirements for financial aid offers that must be provided to prospective and enrolled students.

Specifically, the bill requires the Department of Education (ED) to publish requirements for financial aid offers that each institution of higher education (IHE) participating in federal student aid programs must provide to students. These requirements include standardized terms and definitions, certain formatting requirements, and components regarding costs.

In particular, a financial aid offer must first include a component related to direct costs (i.e., tuition, fees, and other expenses required for the student to enroll in the IHE). If the student completes the component related to direct costs and confirms that the student is seeking financial assistance for indirect costs (e.g., housing and food, books and supplies, and transportation), then the offer must include components related to those indirect costs. IHEs may not refer to these offers as award letters.

The bill requires ED to ensure that information published on the website of each IHE or the College Scorecard includes information on costs, earnings, and loan payments in a manner consistent with financial aid offers. The College Scorecard is a comparison tool for information on school sizes, settings, graduation rates, average costs, and salary ranges per field of study.

The College Cost Transparency and Student Protection Act, also known as Bill 118 hr 1311, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to increase transparency in college costs and provide additional protections for students.

One key aspect of the bill is the requirement for colleges and universities to provide clear and easily accessible information on the total cost of attendance, including tuition, fees, and other expenses. This information must be made available to students and their families before they enroll in a program, helping them make more informed decisions about their education.

Additionally, the College Cost Transparency and Student Protection Act aims to address issues of predatory practices in higher education. The bill includes provisions to prevent colleges from engaging in deceptive marketing tactics and misleading students about the value of their programs. It also establishes a Student Protection Unit within the Department of Education to investigate complaints and enforce regulations. Overall, the College Cost Transparency and Student Protection Act seeks to empower students and families with the information they need to make sound financial decisions about their education. By increasing transparency and accountability in the higher education sector, this bill aims to protect students from unscrupulous practices and ensure that they have access to affordable, quality education.