AR182

An Assembly Resolution urging Congress and the President of the United States to enact the “College Cost Transparency and Student Protection Act.”

Whereas, Current financial aid offers are incomparable across institutions of higher education, which makes it difficult for students and their families to compare and make an informed decision on which institution to attend; and

Whereas, Students who do not understand the full cost of attendance, the financial aid they have been offered, and their borrowing obligations rely more heavily on student loans to fund their education; and

Whereas, These financial decisions have broader impacts on the economy, as reports have found that people with higher levels of student loan debt may be less likely to become homeowners, start families, or open businesses; and

Whereas, The United States Government Accountability Office analyzed the lack of transparency in financial aid offers within the report, “Financial Aid Offers: Action Needed to Improve Information on College Costs and Student Aid” (GAO Report); and

Whereas, The GAO Report found that: 1) 91 percent of institutions of higher education do not include or understate the net price of attendance in their aid offers; 2) 55 percent of institutions do not itemize key direct and indirect costs in their financial aid offers; and 3) 24 percent of institutions do not provide a student with the total cost of attendance; and

Whereas, In response to the GAO Report, proposed federal legislation called the “College Cost Transparency and Student Protection Act” was introduced as H.R. 9429 on December 5, 2022; and

Whereas, The bill seeks to make higher education cost decisions more transparent by: 1) establishing standardized terms and definitions for key information on costs, grant aid, and other financing options; 2) requiring financial aid offers to be sequenced with direct costs of enrollment followed by an itemized list of indirect costs; and 3) publishing a College Scorecard that identifies the average cost of attendance and average net price of each institution of higher education; and

Whereas, New Jersey has a strong ongoing commitment to improving affordability of higher education and ensuring greater transparency in financial aid offers within the State; and

Whereas, New Jersey recently enacted the financial aid “shopping sheet” legislation, section 2 of P.L.2019, c.201 (C.18A:3B-6b), which has been recognized as an important step in the State’s ongoing commitment to ensuring greater transparency on the true cost of higher education; and

Whereas, The “College Cost Transparency and Student Protection Act” is essential legislation that aligns with, and expands, New Jersey’s commitment to providing greater transparency in financial aid offers; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey:

1. The Assembly of the State of New Jersey respectfully urges Congress and the President of the United States to enact the “College Cost Transparency and Student Protection Act.”

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President and Vice-President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the House of Representatives, and to every member of Congress elected from the State.

STATEMENT

This resolution respectfully urges Congress and the President of the United States to enact the “College Cost Transparency and Student Protection Act,” introduced in the United States House of Representatives as H.R. 9429 on December 5, 2022.

The “College Cost Transparency and Student Protection Act” seeks to make financial aid offers more transparent by: 1) establishing standardized terms related cost, grant aid, and financing options; 2) listing clearly a student’s direct costs first followed by the indirect costs of attendance; and 3) publishing a College Scorecard on each institution that informs a potential student the average cost of attendance.

The “College Cost Transparency and Student Protection Act” was introduced in response to the findings within the United States Government Accountability Office’s report, “Financial Aid Offers: Action Needed to Improve Information on College Costs and Student Aid” (GAO Report). The GAO Report found that: 1) 91 percent of institutions of higher education do not include or understate the net price of attendance in their aid offers; 2) 55 percent of institutions do not itemize key direct and indirect costs in their financial aid offers; and 3) 24 percent of institutions do not provide a student with the total cost of attendance. The GAO Report recommended that Congress enact legislation to address these issues.

Transparency in financial aid offers is crucial for students and their families to understand their financial obligations when selecting an institution of higher education. Without clear and comparable information, students may choose an unaffordable institution and be more likely to rely on excessive student loans to finance their education. New Jersey has expressed its commitment to making higher education affordable and ensuring greater transparency in financial aid offers. The “College Cost Transparency and Student Protection Act” is a next step in ensuring transparency and consumer friendly practices by institutions of higher education that aligns with New Jersey’s prior legislative enactments. The State recognizes the importance of creating a federal requirement for financial aid offers. Thus, the Senate respectfully urges Congress and the President to enact the “College Cost Transparency and Student Protection Act.”