Senate bill mandates clearer college financial aid forms

What does this do?

This bill would require federally funded colleges and universities to present financial aid offers in a standard format. The format must list costs first, then grants and scholarships, then a net price, and then loans clearly separated in their own section. Schools could not call an aid offer an "award" or mix loans together with grants in ways that could confuse students.

Who does it affect?

This bill affects students and prospective students at federally funded colleges and universities, as well as the schools themselves. The Department of Education and the Government Accountability Office would also have responsibilities under the bill.

Why does it matter?

If passed, colleges that receive federal funding would need to change how they present financial aid offers and submit their templates to the Department of Education each year. The Government Accountability Office would later study whether the new forms are working and recommend changes if needed.

Where does it stand?