S. 1557 — Net Price Calculator Improvement Act

This section establishes minimum standards for net price calculators (i.e., online tools that allow prospective students to estimate their expected net price of attendance after grants and scholarships) on institutions of higher education websites, requiring compliance not later than one year after enactment of the Net Price Calculator Improvement Act. The standards require (1) prominently labeling and placing the calculator link on cost and aid webpages; (2) displaying on the input screen a chart of net prices for title IV aid recipients disaggregated by income categories for the most recent year available; (3) specifying on the results screen the individual net price (most prominent), cost of attendance components (e.g., total program cost, annual tuition and fees, room and board), estimated grant aid by source and year, percentage of students receiving grant aid by enrollment year, a disclaimer, and handling of veterans'/service members' benefits; (4) using data from not earlier than two academic years prior to the most recent year; and (5) prohibiting sale or sharing of user data, marking contact requests as optional, and including a confidentiality statement. (Thus, these changes enhance transparency and usability for prospective students comparing college costs and aid.)

This section authorizes the Secretary of Education to develop a universal net price calculator (i.e., a Department-branded tool, potentially based on an existing platform) on the College Navigator website that enables users to answer one set of questions to receive net price estimates—including required institutional information on costs, aid, and outcomes—for any institution required to maintain a net price calculator under the Higher Education Act of 1965. The calculator must be developed in consultation with relevant federal agencies and, prior to public release, consumer-tested for up to 6 months among students (including low-income, first-generation, adult, and prospective students), families, institutions, counselors, and nonprofit consumer groups, with results used to finalize the tool and reported to Congress within 3 months of testing completion (including any modifications made). This section also requires the Secretary to submit a report to Congress, not later than 1 year after enactment of the Net Price Calculator Improvement Act, on steps taken to raise awareness of net price calculators among prospective students and families, particularly middle school and high school students and those from low-income families.