1.Institution financial aid
offer form requirementsTitle
I of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended by
adding at the end the following:
EInstitution financial aid offer form
requirements
151.In this part:
(1)The
term adequacy, with respect to a financial aid offer form from a
covered institution, means a letter that provides parents and students with
comprehensive information on the postsecondary education costs and the terms
and conditions of financial aid offered so that the parents and students can
make informed educational loan borrowing decisions.
(2)The term cost of attendance has the
meaning given the term in section 472.
(3)The term covered institution means any
educational institution that—
(A)offers a
postsecondary educational degree, certificate, or program of study (including
any institution of higher education, as such term is defined in section 102);
and
(B)receives any
Federal funding or assistance.
152.Institution
requirements relating to financial aid offer forms
(a)
(1)Not later than October 1, 2009, the Secretary
shall—
(A)prepare a report
on the adequacy of the financial aid offer forms provided by covered
institutions to students and the parents of such students, after consulting
with—
(i)students;
(ii)parents of
students;
(iii)representatives
of covered institutions (including financial aid administrators, registrars,
and business officers); and
(iv)consumer groups
that receive no commercial or covered institution support;
(B)include in the
report model financial aid offer formats for financial aid offer forms
that—
(i)are based on the
report’s findings; and
(ii)include the
information described in paragraph (2); and
(C)(i)submit the report and
model formats to the Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and Labor of the House of
Representatives; and
(ii)make the report and model formats
available to covered institutions, lenders, and the public.
(2)The model financial aid offer formats developed under
paragraph (1) shall present, in a consumer-friendly manner, the following
information:
(A)The student's
total cost of attendance for the year for which the covered institution is
issuing the financial aid offer form, including the actual or estimated costs
included in the total cost of attendance for such year for each of the
following:
(i)Tuition and
fees.
(ii)Room and board
costs.
(iii)Books and
supplies.
(iv)Transportation
and miscellaneous expenses.
(B)The amount of
financial aid that the student does not have to repay, such as scholarships and
grants, offered to the student for such year.
(C)The conditions
under which the financial aid described in subparagraph (B) is renewable each
year.
(D)The net cost of
attendance for the student, calculated as the total cost of attendance for the
student (as described in subparagraph (A) less the amount of financial aid that
the student does not have to repay (as described in subparagraph (B)).
(E)The amount of
work-study assistance offered to the student for such year, and the conditions
that the student has to fulfill for the work-study assistance.
(F)Information about
loans for which the student, or a parent of the student, is eligible for such
year and loans the covered institution recommends for such year, as the
Secretary determines necessary for the model formats to meet the definition of
adequacy under this part. The information shall include the applicable interest
rates and other terms and conditions of the loans, including the estimated
monthly repayment amount. The loans may include loans under part B, D, or E of
title IV or awards under subpart 9 of part A of title IV (TEACH Grants).
(G)Where a student
or the student's parent can seek additional information regarding the financial
aid offered.
(H)Any other
information the Secretary determines necessary so that students and parents can
make informed student loan borrowing decisions.
(b)Covered
institution dutiesNot later than 1 year after the release of the
report and model financial aid offer formats described in subsection (a), each
covered institution shall—
(1)use one of the
model financial aid offer formats as part of the information provided in any
financial aid offer form that the covered institution provides to a student
attending or planning to attend the covered institution, or the parents of such
student; and
(2)ensure that such
student and the parents of such student receive the financial aid offer form in
time for such student or parent to take the information provided into account
before applying for or selecting an educational
loan.
.