University of Maryland pledges to make financial aid transparent

University of Maryland system is among 10 colleges and universities promising to make financial aid transparent to students. It’s part of an Obama Administration effort to make sure incoming students understand what they’re getting into. The hope is that other schools will voluntarily do the same.

Today, VP Joe Biden, Secretary of Education Arne Duncan and Richard Cordray of the Consumer Financial Protection Bureau are meeting with leaders of the 10 schools to announce this transparency goal beginning with the 2013-2014 school year.

That’s nice, but why do the schools wait so long?

Anyway, schools will provide such information as the cost of one year of college, make clear the differences between scholarships, grants and loans and even the rate that students continue in college and don’t default on their obligations.

The CFPB has put together a model form of a financial award letter and is still seeking comment on what consumers think about it.