December 6, 2022

Most Colleges Give Inaccurate Price Details in Financial-Aid Letters, Federal Report Finds

 "GAO blasts poor disclosures to students, calls for legislation standardizing cost and aid information," according to The Wall Street Journal (12/6/22) writer Melissa Korn. 

According to the Government Accountability Office (GAO), most schools provide "woefully inadequate and even misleading" information to prospective students. 

I noticed this problem with my niece's college aid offers that listed federal student loans as "financial aid" in the same column with actual scholarships (that don't require repayment), implying that loans requiring repayment fit in the same category. And we all know how controversial student loans are as the burden for many students, especially those who borrow but don't graduate, is often far more than anticipated.

"Aid letters that are supposed to lay out tuition, fees and other expenses, and what grants, loans and other financing options are available to cover those costs, lack crucial information that would allow families to compare institutions. At their worst, some financial aid offer letters lead students to enroll in schools they can’t afford."

"One of the most troubling findings from its review, the GAO said, was that 91% of schools don’t properly list their net price, or the amount a student is expected to pay for tuition, fees, room, board and other expenses after taking into account scholarships and grants."

Free photos of Mentor

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