Exploring the cost of a 4-year institution is not a simple process and can be quite confusing. Fortunately, several Colleges and Universities in Texas have made a pledge to make the cost of attending school easier to understand. They are members of the College Cost Transparency Initiative. Members of this initiative pledge to the uphold the following standards:
Critical components to be included and displayed prominently on every financial aid offer include:
- An estimate of a student’s total Cost of Attendance, including a breakdown of the costs to be paid to the college or university and the costs paid to others.
- The type and source of all financial aid being offered, separated into
- Grants and scholarships that do not need to be repaid.
- Student loans or other financing that must be repaid.
- Student employment or work
- An estimated net price for the student, derived by subtracting grants and scholarships from the total Cost of Attendance.
- Information, either on the financial aid offer or by an easily identified and accessible weblink, explaining whether the financial aid is being offered once or on an ongoing basis, and if the aid is renewable, any requirements that must be met for renewal.
- All loans should be unambiguously labeled as such. using the word “loan”.
- Use commonly understood terms and definitions, using the College Cost Transparency Initiative’s glossary of terms.
In addition, financial aid offers must include the following, either directly on the financial aid offer, as part of supplemental materials, or as easily accessible web links:
- If student employment is offered, information about employment requirements and information on job placement.
- If federal student loans are included, terms and conditions and information on how much such debt may cost over time.
- Actionable next steps for students to accept or decline their financial aid or update one of the data elements used to calculate their estimated costs, such as housing, as well as important dates and contact information for the financial aid office.
