WASHINGTON — Students will now be able to compare individual financial aid offers from different colleges using an interactive, online worksheet developed by the Consumer Financial Protection Bureau.
CFPB Director Richard Cordray unveiled the agency's latest student borrower tool Wednesday in South Dakota, where he visited with Senate Banking Committee Chairman Tim Johnson and met with students at Harrisburg High School.
The Financial Aid Comparison Shopper, which is being released in a
"Student loan debt has crossed the $1 trillion mark and tuition continues to climb," Corday said in a press release. "Now more than ever, students and their families need to know before they owe.
A recent report found that South Dakota has the largest percentage of students leaving college with debt — an average of more than $23,000 per student, according to information released by Johnson's office.
"Students' concerns should be focused on how to get a good grade on their next test, not whether tuition costs will put them into lifelong debt," Johnson said in a separate press release. "The Financial Aid Comparison Shopper is a real game changer for students and parents, and it is a perfect example of why we created the CFPB."
The worksheet also includes a so-called Military Benefit Calculator that can estimate education benefits for servicemembers, veterans and their families, including tuition assistance and benefits under the GI Bill.
This is the latest development in the CFPB's Know Before You Owe initiative, which aims to provide clear, concise disclosures for borrowers. The agency released a model financial aid offer form last year, as well as an interactive debt repayment assistance tool, and began taking student loan complaints last month.
CFPB and the Department of Education must deliver a joint report to Congress on the student loan market by July 21.
