Future Caucus Member Rep. Andy Kim Seeks to Improve Student Financial Aid Transparency for Families
September 27, 2021
HR5381, the Front-Loaded Aid Transparency (FLAT) Act, was introduced this September by Future Caucus member Rep. Andy Kim (NJ-03) in an effort to increase financial aid transparency for prospective college students.
HR5381, the Front-Loaded Aid Transparency (FLAT) Act, was introduced this September by Future Caucus member Rep. Andy Kim (NJ-03) in an effort to increase financial aid transparency for prospective college students. This bipartisan legislation is cosponsored by fellow Future Caucus member Rep. Rodney Davis (IL-13), and would direct the Government Accountability Office (GAO) to conduct a study on the front-loading of grant aid by institutions of higher education. The study would focus on identifying the prevalence of potentially deceiving aid practices and their effects on enrollment intensity, student loan borrowing, retention, and graduation rates.
Financial aid “front-loading” occurs when a school provides more aid to students in the first year of their education than in subsequent years, a tactic often used to attract students to a school. There are currently no federal disclosure requirements regarding the contents of financial aid letters colleges and universities provide to students; the FLAT Act would force higher education institutions to explicitly inform both prospective and current students on how aid amounts could change throughout their time in school. This information will empower future students to choose the education path that best fits their needs, allowing them to securely plan for their educational and financial goals.
“Front-loading aid makes it harder for students and their families to plan for college,” said Congressman Kim. “Our bipartisan bill will increase transparency and help students and parents make the best financial decisions for their families. I am proud to work with Congressman Davis on this important bipartisan bill, and I look forward to working with my colleagues on both sides of the aisle to pass this common-sense measure.”
The FLAT Act is active in the House Committee on Education and Labor, and has been endorsed by both The Institute for College Access and Success and The Institute for Higher Education Policy.
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