Mandatory use of terms; financial aid offer form requirements

(a) In General Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is amended by adding at the end the following: 124. Use of mandatory financial aid offer terms (a) In general Notwithstanding any other provision of law, each institution of higher education that receives Federal financial assistance under this Act shall use the standard terminology and definitions developed by the Secretary of Education under subsection (g)(1) of section 484 of the Higher Education Opportunity Act (20 U.S.C. 1092 note) for all communications from the institution related to financial aid offers (as defined in subsection (a) of such section), regardless of whether such communications are electronic, written, or through another medium. (b) Effective date The requirements under this section shall take effect on the first date on which the Secretary releases the Free Application for Federal Student Aid for the applicable award year associated with that application, that occurs later than 1 year after the Secretary of Education finalizes the standard terminology and model form developed in accordance with section 484 of the Higher Education Opportunity Act (20 U.S.C. 1092 note). (c) Administrative procedures Section 492 shall not apply with respect to regulations promulgated in accordance with this section. 125. Requirements for financial aid offer forms (a) In General Beginning on July 1 following the effective date of section 124, and annually thereafter, each institution of higher education that receives Federal financial assistance under this Act shall submit to the Secretary a template of the form (without any student data) that the institution uses for financial aid offers (as defined in section 484(a) of the Higher Education Opportunity Act) to enrolled and prospective students. Institutions that use electronic systems to communicate financial aid offers may submit digital representations (such as screenshots) of those systems. (b) Forms Such institutions shall— (1) use the model financial aid offer form developed pursuant to section 484(h) of the Higher Education Opportunity Act (20 U.S.C. 1092 note); or (2) use the institution's own form for financial aid offers if that form meets the requirements of subsections (c), (d), and (e) of such section and uses the required terminology and definitions in accordance with section 124. (c) Public availability The Secretary shall make each template received under this section publicly available.. (b) Financial aid offer compliance Section 485(a) of the Higher Education Act of 1965 (20 U.S.C. 1092(a)) is amended by adding at the end the following: (8) Each eligible institution participating in any program under this title shall ensure that any financial aid offer (as defined in section 484(a) of the Higher Education Opportunity Act) communicated to a prospective or enrolled student complies with the requirements of sections 124 and 125..