Imagine you’ve just been accepted to the college of your dreams. At first you feel elation, but then anxiety sets in — will you and your family be able to afford it? Since financial aid packages often blur the line between grants and loans, it might be hard to tell. A $40,000 "award" at one school might seem like a much better deal than a $20,000 package at another — unless you realize the larger "award" consists mostly of loans. With borrowing and loan default rates on the rise, aid packages have huge consequences for students’ educational and financial lives.
In response, the U.S. Department of Education recently unveiled a "Shopping Sheet" that standardizes the way financial aid packages are presented to students. This allows students and parents to easily compare the true cost of one college to another. But institutions don’t have to use the Shopping Sheet, and the National Association of Student Financial Aid Administrators (NASFAA), a powerful industry trade group, is trying to make sure they never do.
NASFAA should be an influential advocate for the Shopping Sheet. Part of its mission is to support policies that increase student access and success. But when the Shopping Sheet was recently unveiled by the Department of Education, NASFAA’s president, Justin Draeger, issued the following statement:
"We remain concerned with the inflexible standardization of the Shopping Sheet, and more broadly, with the multitude of consumer disclosure initiatives that have been introduced in recent months. Institutions need flexibility to design a financial aid award letter that best meets the needs of their unique student populations."
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