Washington, DC – Today, U.S. Representatives Young Kim (CA-40) and Raja Krishnamoorthi (IL-08) reintroduced the Understanding the True Cost of College Act, a bipartisan bill to improve and streamline the financial aid process for students and families.
Companion legislation was introduced in the Senate by Sens. Chuck Grassley (R-IA) and Tina Smith (D-MN).
The Understanding the True Cost of College Act would improve financial aid transparency by:
- Standardizing financial aid offer forms and ensuring the Department of Education works with colleges, consumer groups, students, and school guidance counselors to develop standard definitions for award letters
- Establishing the minimum necessary information to be included on page one of the uniform financial aid offer form.
“After putting myself through school and raising four kids, I have experienced firsthand as a student and as a parent how confusing the financial aid process can be. Students and families deserve transparency on the costs of going to college when evaluating educational opportunities,” said Kim. “The Understanding the True Cost of College Act ensures that colleges provide accurate pricing information so students can evaluate the best way for them to receive a quality education and reduce debt. I’m glad to partner with Rep. Krishnamoorthi, Sen. Grassley, and Sen. Smith on this commonsense initiative to support students and families.”
“As college costs continue to soar, students and families deserve honest, clear information to make one of the most important financial decisions of their lives,” Congressman Krishnamoorthi said. “The Understanding the True Cost of College Act will empower them with transparency and fairness, helping prevent unnecessary debt and ensuring every student has the opportunity to pursue higher education.”
“When it comes to college costs, we ought to focus on fixing the process on the front-end before students get in over their heads. The federal government should be offering commonsense resources to better prepare borrowers. Our Understanding the True Cost of College Act will bring much-needed clarity to the financial aid process, creating a universal standard to help students more easily compare aid packages between schools. In the Senate, I’m working to help America’s next generation pursue higher education opportunities without breaking the bank,” Grassley said.
“For too long, students have been hindered by confusing, inconsistent, and misleading information when trying to figure out student loans and federal financial aid,” said Smith. “The decision to go to college and how to pay for it is often one of the most important financial decisions someone can make, second to getting a mortgage and buying a house, so it’s critical that students have the information they need. This bipartisan legislation cuts through the noise, creating a universal financial aid offer form that allows students and families to compare financial aid offers easily, on an apples-to-apples basis, to make the best decision for themselves.”
Read the bill HERE.
