A newly released federal watchdog report on the cost of higher education this week prompted U.S. Rep. Young Kim (R-CA) to call for action on her bipartisan bill to streamline and improve transparency of the financial aid process so students and families can better navigate decisions regarding the cost of college.
The Government Accountability Office (GAO) report, entitled Financial Aid Offers: Action Needed to Improve Information on College Costs and Student Aid, found that 91 percent of colleges understate the total cost of a college education.
“Today’s GAO report reaffirms what we hear every day from students and families in California and across the nation — too many colleges misrepresent the total cost of programs and financial aid options,” said Rep. Kim on Dec. 5, when the GAO report was publicly released.
After reviewing the GAO report, Rep. Kim renewed her push for action on the Understanding the True Cost of College Act of 2021, H.R. 6002, which she sponsored in November 2021 with lead original cosponsor U.S. Rep. Raja Krishnamoorthi (D-IL). The bill remains under consideration in the U.S. House Education and Labor Committee.
If enacted, H.R. 6002 would require the U.S. Department of Education to develop standard terminology and a format for financial aid offer forms based on recommendations from representatives of certain groups, including students, veterans, and institutions of higher education, according to the congressional record bill summary.
“Families deserve the most accurate information regarding the cost of college and available resources,” said Rep. Kim. “That is why Congress must pass our Understanding the True Cost of College Act as soon as possible to ensure a streamlined, transparent financial aid process that allows families to make the best, informed decision possible to reduce student debt.
“I will not stop fighting to make life more affordable for the communities I represent,” the congresswoman added.
The GAO, which in its report analyzed a representative sample of financial aid offer letters from hundreds of colleges to compare prices and inform future decisions, also found that 65 percent of higher education institutions leave out important details about aid packages; and 31 percent list loans as grants.
Additionally, the GAO report notes that Rep. Kim’s bill is already before Congress and would help fix this lack of clarity by creating a universal financial aid offer letter so students can easily compare financial aid packages between schools.
The measure is endorsed by 35 organizations, including the U.S. Chamber of Commerce, Veterans Education Success, the NAACP, Partners for College Affordability and Public Trust, the National Scholarship Providers Association, and the Institute for Higher Education Policy.