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Consumer Disclosure Proposals

Consumer Disclosure Proposals Presented by the National Association of Student Financial Aid Administrators. Current Consumer Disclosure Climate. Major focus in Washington on consumer disclosure for students & families Numerous proposals regarding award letters and consumer disclosures

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Consumer Disclosure Proposals

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  1. Consumer Disclosure Proposals Presented by the National Association of Student Financial Aid Administrators

  2. Current Consumer Disclosure Climate • Major focus in Washington on consumer disclosure for students & families • Numerous proposals regarding award letters and consumer disclosures • Proposals contain overlaps in goals, mandates, and public outreach

  3. Recent Proposals

  4. College Scorecard

  5. Shopping Sheet

  6. Shopping Sheet Details • NASFAA has been in constant communication with ED, White House & CFPB on the issue • NASFAA appreciates that the Shopping Sheet is voluntary, but remains concerned about the inflexible nature: • One size fits all for every sector and type of student • Does not allow for information to tailor information to the unique needs of their students • Comparative information has potential to be inaccurate and misleading

  7. Shopping Sheet- Next Steps • As of end of September, 316 institutions had officially “signed on”—though many had done so de facto through their commitment to the VA Principles of Excellence • NASFAA remains in discussions with key stakeholders related to how the sheet can be improved • NASFAA Consumer Testing of Award Letters

  8. Comparison Worksheet

  9. Senator Franken’s Award Letter Standardization Bill

  10. Senator Blumenthal’s Consumer Disclosure Bill

  11. Federal Model Award Offer Forum

  12. Principles of Excellence (Shopping Sheet Provision)

  13. Recommendations from NASFAA Award Letter Task Force

  14. NASFA Award Letter Task Force Recommendations • Include 10 core elements: • Cost of Attendance • Scholarship & Grant Awards • Net Costs After Gift Aid • Self-Help Options • Assumptions (enrollment status; housing, etc.) • Link to Total Debt Aggregator • Link to Consumer Information Disclosures • Link to Glossary of Terms and Definitions • Contact Information for the Financial Aid Office • Deadlines and Next Steps

  15. NASFA Award Letter Task Force Recommendations 2. Components of COA should be broken down into: • Direct Costs • Indirect Costs 3. Students should be informed of the potential debt they may incur at a college before paying the enrollment deposit 4. Award notifications should provide enrolled students with their cumulative loan history

  16. NASFA Award Letter Task Force Recommendations 5. The U.S. Department of Education should mandate that there be a central loan database (aggregator) where students can see all—federal and private—loans. 6. Each award letter should link to school-created web resource that contains links to additional information

  17. Where to go from here? • With so many proposals addressing the same issues and large amounts of redundancy: • Create a dialogue to combine/analyze the numerous options • Conduct actual consumer testing so that measures of usability and comprehension are a part of discussions • Focus attention on the need to eliminate and/or streamline existing efforts before introducing new

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