Ernst, Grassley Continue Work to Bring Transparency to College Tuition
The Supreme Court is set to review Biden’s plan to transfer $400 billion in student loan debt to hardworking Americans. GAO reports that 91% of colleges understate the total cost of their programs to students.
WASHINGTON – As the Supreme Court prepares to hear arguments this week on President Biden’s student debt transfer, U.S. Senators Joni Ernst (R-Iowa) and Chuck Grassley (R-Iowa) are continuing their work to create a universal financial aid offer letter so students can fully understand what they would owe and easily compare financial aid packages between institutions.
Last year, the Government Accountability Office (GAO) analyzed financial aid offer letters from hundreds of colleges. These letters are the first official notices from colleges to students, which are then used to compare prices and inform future decisions. The analysis found:
- 91% of colleges understate the total cost;
- 65% leave out important details about aid packages; and,
- 31% list loans as grants.
“President Biden’s desire to transfer $400 billion in student loan debt to working families is totally unfair,” said Ernst. “Student debt will continue to rise as long as students and their families are misled by colleges about the true costs associated with education. That’s why I partnered with Senator Grassley on this commonsense bill to ensure a streamlined, transparent process that equips families to make informed decisions before incurring debt.”
“I often hear from Iowa families who are frustrated and confused by the complex student loan borrowing process. So much of the student debt conversation focuses on repaying debt. We ought to fix the process on the front-end before students get in over their head. The federal government should be offering commonsense resources to better prepare borrowers,” Grassley said. “The Understanding the True Cost of College Act would provide additional clarity to the student loan process so that America’s next generation of leaders can pursue higher education opportunities without breaking the bank.”
In addition to the Understanding the True Cost of College Act, Ernst recently introduced the STUDENT Act with Senator Grassley to give students a clear estimate of the costs they would owe down the road before they take out a loan by incorporating the estimated total interest amount based on their repayment plan.
###
