Trahan, Guthrie Introduce the Net Price Calculator Improvement Act

Trahan, Guthrie Introduce the Net Price Calculator Improvement Act:

Washington, October 15, 2021

WASHINGTON, D.C. – Today, Congresswoman Lori Trahan (D-MA-03), along with Congressman Brett Guthrie (R-KY-02), introduced the Net Price Calculator Improvement Act. This bipartisan legislation would make improvements to existing law by increasing transparency and the accessibility of information about the cost of college for students and their families.

“For many individuals and families, a college education is one of the biggest financial investments they will ever make,” said Congresswoman Trahan. “As the costs of higher education continue to skyrocket, prospective students and their families are often forced to choose schools without a full understanding of the return on their investment. As a former first-generation college student, a stepmom to three college graduates, and a mother of two young girls, I know firsthand how difficult it can be to find key information beyond sticker prices to understand how much a family needs to earn, save, or borrow in order to afford a college education. I’m proud to work with Congressman Guthrie on this important legislation that will finally ensure students and their parents have the full picture of what it will cost to attend an institution by reinforcing transparency and accountability in our higher education system. This bill passed out of the Education and Labor Committee as an amendment last Congress, and I look forward to its swift passage once again.”

“The financial cost of attending a college or university has more than doubled since I was in college and continues to rise each year,” said Congressman Guthrie. “Cost is one of the most important factors for prospective students and their families when deciding which college to attend. However, this information is not as transparent as it should be, which can lead to students taking on more financial burden than expected. I reintroduced the Net Price Calculator Improvement Act to require institutions of higher education to be clearer with students on the total cost of attendance, so students can have the information needed to more accurately compare prices and choose the best college for them.”

In 2008, Congress first required institutions of higher education to provide Net Price Calculator tools on their websites with the Higher Education Opportunity Act. However, this tool has been implemented inconsistently, and the price calculator can be difficult to find on institutions’ websites when trying to compare costs between institutions. 

The Net Price Calculator Improvement Act would make Net Price Calculator tools more consistent and easier to find, and it would require tuition, room and board, and other costs to be listed prominently on higher education institutions’ websites. This bill would also require the Secretary of Education to make updates to the Department of Education’s universal net price calculator on their website by conducting consumer testing, and then report to Congress about how the changes are expected to improve the tool’s effectiveness when implemented.

The full text of the Net Price Calculator Improvement Act can be found HERE.