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In its latest effort to simplify consumer finance, the new federal Consumer Financial Protection Bureau has teamed up with the Department of Education to create a one-page financial aid “shopping sheet.”

The idea here is that a single sheet of basic information would help students and their families better understand the amount of financial aid they qualify for, and compare aid packages offered by different colleges and universities before deciding which school to attend.

The draft sheet (you can see it here; the agencies want public feedback on the format, and what changes would make it better) would help make the costs, and risks, of student loans clear before students have enrolled. It outlines the student’s total estimated debt and monthly loan payments after graduation.

Raj Date, who is leading the bureau, said in a statement that student loans can help make lives better by helping people access education. “But in these tough economic times,” he said, “the stakes have never been higher for students and their families to clearly understand the costs and risks of student loans.”

Student loans in the United States now appear to be the biggest source of household debt after mortgages. In part, that’s because more students are going to college, but it’s also because tuition is increasing.

The draft form includes the total cost of attendance, including tuition, fees, and other expenses; a clear distinction between scholarships, which don’t have to be repaid, and loans; a list of the different federal loans available to the student; the total estimated student loan debt at graduation; and the estimated monthly debt payments after graduation.

The bureau is also offering a new tool to help students who may be struggling to repay their college debt evaluate possible options.

Take a look at the form and the tool, and let us know what you think in the comments section.

Article source: http://feeds.nytimes.com/click.phdo?i=c0b911387e88a8ccf872c0c788aa36f1