June 5th, 2012
02:05 PM ET
NEW YORK (CNNMoney) - The Obama administration announced a push to have colleges make better disclosures to students about the true cost of loans, as well as graduation and loan default rates at each school.
Vice President Joseph Biden, Education Secretary Arne Duncan and Richard Cordray, director of the Consumer Financial Protection Bureau, were set to meet Tuesday with presidents of 10 colleges that have committed to providing more detailed disclosure information to incoming students at the start of next school year.
The Obama administration officials at the meeting will later call on all colleges and universities to make the same disclosures.
The information to be provided by the 10 schools includes how much one year of college will cost, financial aid options to pay this cost, and net costs after grants and scholarships are taken into account.
They will also give students estimated monthly payments for the federal student loans the student would likely owe after graduation; and comparative information about the rates at which students enroll from one year to the next, graduate, and repay their loans without defaulting.