Kim, Grassley, Smith Renew Push for Student Loan Reform Bill Following Alarming GAO Report

Washington, DC – Today, the Government Accountability Office (GAO) published

an alarming report, finding that a vast majority – 91 percent – of colleges mislead potential students on the true cost of their education. After reviewing the report, U.S. Rep. Young Kim (CA-39) and Sens. Chuck Grassley (R-IA) and Tina Smith (D-MN) renewed their push for the Understanding the True Cost of College Act.   

GAO analyzed a representative sample of 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 percent of colleges understate the total cost;  

-65 percent leave out important details about aid packages; and, 

-31 percent list loans as grants. 

The GAO report notes the Understanding the True Cost of College Act is already before Congress and would help fix this lack of clarity. Specifically, the bill would require colleges to follow well-documented best practices for information contained in all financial aid offer letters. It would create a universal financial aid offer letter so students can easily compare financial aid packages between schools. 

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