Bill Overview
Title: College Cost Transparency and Student Protection Act
Description: 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.
Sponsors: Rep. McClain, Lisa C. [R-MI-10]
Target Audience
Population: Prospective and Enrolled College Students Worldwide
Estimated Size: 20000000
- The target population includes prospective and enrolled college students as they will receive more transparent financial aid offers.
- The transparency in financial aid offers is likely to improve financial planning for these students and their families.
- The legislation impacts institutions of higher education which are required to provide this information.
- Educational policy makers and administrators will also be affected as they must comply with new regulations.
Reasoning
- Prospective and current college students are directly impacted as they will receive clearer financial aid offers, potentially improving their financial decision-making and educational experiences.
- Educational institutions will need to adapt their processes to comply with the standardized requirements, which may incur initial costs but lead to long-term benefits in transparency.
- Parents of students, educators, and policymakers will indirectly be affected as they may gain access to more reliable financial information, aiding in better advising and decision-making.
- The policy budget suggests a limited focused rollout initially with a broader impact expected over ten years, aligning with the gradual implementation and adaptation process.
- The financial transparency may not impact all students equally, with those less experienced in financial planning perhaps seeing greater benefits.
Simulated Interviews
college student (Austin, TX)
Age: 19 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- Financial aid information is really confusing, especially as the first person in our family to go to college.
- I hope this policy helps make things easier to understand so I can focus on my studies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
college student (Madison, WI)
Age: 22 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- Understanding how much I actually owe for school and what it's going to cost is always difficult.
- Any transparency makes it clearer how much debt I'm getting into and helps me plan better, so I think this policy is very positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
college administrator (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This policy will increase our workload initially but will ultimately help students understand their financial responsibilities better.
- We need to adapt our systems, and it will cost time and resources, but it's a worthwhile endeavor.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
college student (Los Angeles, CA)
Age: 20 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- I often find it hard to balance work and study, especially with unclear tuition and fee requirements.
- This policy might help me see exactly what I'm getting into, although I'm not sure how quickly I'll see the benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
prospective college student (Boulder, CO)
Age: 18 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 18/20
Statement of Opinion:
- Choosing a college is stressful, and financial aid is a big part of it. Any clarity is definitely a big help.
- I think this policy will help my family and me understand what we need to do to afford college.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
graduate student (Chapel Hill, NC)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- As an international student, financial transparency helps me plan better, even though the initial impact might be limited due to differences in aid availability.
- I hope it becomes a global standard eventually.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
financial aid advisor (Boston, MA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- Our task will be challenging initially as we adjust to the new rules, but the potential for better-guided students is promising.
- There's definitely a learning curve, but it's a positive change for future clarity in financial aid.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
recent graduate (Chicago, IL)
Age: 24 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Navigating post-graduation finances would have been less stressful with clearer financial aid information.
- Future students, especially those like me, might find this policy a big relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
high school student (Atlanta, GA)
Age: 17 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 17/20
Statement of Opinion:
- College costs are a big thing for my family. Any clear information only helps us make better decisions.
- This policy sounds really promising for people like me who need financial aid to study.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
high school counselor (Phoenix, AZ)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- Guiding students through the financial aid maze is one of the hardest parts of my job.
- This policy could simplify my work and help students make better financial decisions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $25000000 (Low: $20000000, High: $30000000)
Year 2: $12000000 (Low: $10000000, High: $14000000)
Year 3: $12000000 (Low: $10000000, High: $14000000)
Year 5: $12000000 (Low: $10000000, High: $14000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Ensuring that IHEs comply with new regulations could require enforcement resources.
- The scale and diversity of IHEs may pose challenges in standardizing financial aid offer terms and formats.
- Public acceptance and understanding of the new financial aid offer formats may vary across different demographics.
- IHEs' capacity and willingness to adapt to new regulations will be crucial.