Tools to Support Higher Education Choice

1. Tools to Support Higher Education Choice Carney McCullough Director, Policy Development Group U.S. Department of Education

2. Today’s Agenda Focusing on the Department’s newest college choice tools— • The College Scorecard • The Financial Aid Shopping Sheet

3. Background • White House initiative on Improving Transparency & Accountability • President Obama tasked his Administration with providing students and families new tools and relevant information to help them make sound financial decisions in pursuing their higher education goals: • Designing a College Scorecard • Creating a Financial Aid Shopping Sheet • Protecting Veterans, Military Spouses, and their Families • Led to several new “tools” to support choice process

4. Context • Suite of consumer information tools on college choice • College Affordability and Transparency Center • College Scorecard • College Navigator • Financial Aid Shopping Sheet

5. The College Scorecard

6. College Scorecard • Stage of choice process: identifying where to apply • Launched on the College Affordability & Transparency Center in February 2013 • Designed to help prospective students and their families as they begin to evaluate options for their investment in higher education • Provides key measures of college affordability and value to help prospective students identify institutions best suited to their goals, finances, and needs • http://collegecost.ed.gov

7. College Scorecard • Designed by ED and the Consumer Financial Protection Bureau (CFPB) as part of the “Know Before You Owe” campaign, initially designed for degree-granting institutions • Draft was posted for public comment on the White House website early in 2012 • Comparison group development included suggestions from an IPEDS Technical Review Panel (June 2012) on how to define institutional comparison groups for consumer information purposes

8. 2013-14 College Scorecard

9. College Scorecard: Current Metrics

10. College Scorecard • Metrics based on data provided by institutions • Updated annually • Accurate and timely reporting is key • Compared to “similar institutions” on each measure, defined as the predominant undergraduate award granted: • Primarily bachelor’s degree-granting • Primarily associate’s degree-granting • Primarily certificate granting

11. Next Steps… • Enhance functionality • Explore available data sources for employment outcomes

12. Scorecard Resources • 2/27/13: DCL offering guidance on the Net Price Calculator requirement • 4/12/13: EA describing SAIG Message Class File Update—related to median borrowing report • 5/6/13: EA announcing NSLDS Median Borrowing Backup Detail Report • Questions: CollegeScorecard@ed.gov

13. The Financial Aid Shopping Sheet

14. Shopping Sheet • Stage of choice process: choosing where to enroll • Standardized, clear, and concise format for providing prospective students their personalized financial aid offer • Designed to help prospective students and their families better understand the costs of college before making the final decision on where to enroll • Identifies the type and amount of aid qualified for and allows for easy comparison of aid packages offered by different institutions

15. HEOA Requirement • HEOA requirement for model aid offer format • Refocused attention on communicating aid offers • Goal of helping families make informed decisions about college • Required public meeting to discuss improvements & offer recommendations • Required development & distribution of model aid offer format • Public meeting held 9/13/11

16. Work with CFPB • After public meeting, began working with the Consumer Financial Protection Bureau • Logical connection— • Their focus on information to help consumers make good financial choices • Aid offer sets up conditions for financial transaction between student & school • Experience in developing and testing tools

17. Work with CFPB • “Thought-starter” format discussed at 2011 FSA conference and later posted on CFPB website • CFPB expertise and 1,000+ comments helped develop the current version • Valuable suggestions on structure and organization • Work led to Financial Aid Shopping Sheet announced by Secretary Duncan in July 2012

18. Shopping Sheet • Single sheet, standardized format • Can use as cover sheet with aid offer notification or as standalone notice of aid awards • Value as a consumer comparison tool • Transparently and consistently providing information to all students

19. Shopping Sheet • 745+ institutions have adopted the Shopping Sheet • Use is voluntary but strongly encouraged • Designed for undergrads and may be modified for graduate students • Fulfills information requirements for key pieces of Executive Order 13607

20. Executive Order 13607 • Established the Principles of Excellence • Signed April 27, 2012 • Designed to ensure information, support and protections are put in place for those students enrolled in postsecondary programs receiving federal military educational benefits • Electronic Announcement 6/29/12 with recorded webinar

21. Executive Order 13607 • Shopping Sheet required for schools that agree to comply with Executive Order 13607 • Provides a prospective veteran/service member student with personalized form that contains standardized information describing program costs and costs that may be covered by available Federal educational benefits and financial aid

22. 2013-14 Shopping Sheet

23. Institutional Banner

24. COA – Grants = Net Costs

25. Work, Loan, & Other Options

26. Institutional Metrics

27. Loan Repayment & Contact Info

28. Shopping Sheet and EDExpress • Release 3.0 issued on 5/16/13 • Create or import school data • Import ED provided metrics • Export Shopping Sheet records • Print Shopping Sheet

29. Next Steps… • Reviewing feedback we’ve received • Looking at modest adjustments for the second year • Would like another year of experience • Mindful about the systems implications of making major changes

30. Shopping Sheet Website • Collects development history and various resources • Annotated Shopping Sheet describes and clarifies the elements on the Shopping Sheet • Listing of institutions that have adopted the Shopping Sheet • Financial Aid Shopping Sheet FAQs • HTML specifications for the Shopping Sheet • Institutional Metric Data File for the Shopping Sheet • Address: http://www2.ed.gov/policy/highered/guid/aid-offer/index.html

31. Shopping Sheet Communications • 7/13/12: DCL GEN-12-10 on implementing Executive Order 13607 • 7/24/12: Secretary’s open letter to college presidents • 7/25/12: DCL GEN-12-12 to financial aid administrators • 8/30/12: DCL GEN-12-17 to institutions that agreed to comply with the Principles of Excellence in Executive Order 13607

32. Shopping Sheet Communications • 9/11/12: EA with implementation details • 9/25/12: Secretary’s blog post on ED.gov • 9/28/12: EA with HTML specs • 1/18/13: EA with Institutional Metric Data File • 1/30/13: DCL GEN-13-05 with FAQs • Questions: ShoppingSheet@ed.gov

33. Contact Information Carney McCullough Director, Policy Development Group Carney.McCullough@ed.gov 202-502-7639