H.R. 6502
College Financial Aid Clarity Act of 2025
Sponsor: Lisa C. McClain
3 cosponsors
Official summary
Written by the Congressional Research Service.
College Financial Aid Clarity Act of 2025
This bill requires the Department of Education (ED) to develop, and for institutions of higher education (IHEs) to use, a standardized, consumer-tested format for all financial aid offers.
Any financial aid offer must include specified details and disclosures, including (1) cost information (e.g., cost of attendance and net price); (2) disclosures related to loans (e.g., applicable interest rates); (3) information on student employment opportunities; and (4) next steps for accepting, adjusting, or declining financial aid.
Each IHE that participates in federal student aid programs must (1) include the required information for all financial aid offers (including paper, mobile, or electronic offers), (2) provide supplemental content and disclosures (e.g., requirements for renewing financial aid), and (3) use consistent terminology for all communications related to financial aid offers.
Text of the bill
Where this section came from
-
Dec 9, 2025 · Introduced in House Referred to House Committee on Education and Workforce, Dec 9
-
Jan 21, 2026 · Reported in House Marked up by House Committee on Education and Workforce, Dec 11 Reported by House Committee on Education and Workforce, Jan 21 Committee members' individual votes aren't in our records.
… 10 unchanged passages …
(2) Supplemental content and disclosures. Each institution of higher education described in paragraph (1) shall provide, in supplemental documents or through easily accessible
weblinks
links
to
on
the institution’s portal or a website, the following: (A) The renewability requirements and conditions under which the student can expect to receive
,
similar amounts of financial aid that is included in the student’s financial aid offer
for each award year the student is enrolled at the institution
, similar amounts of financial aid
.
… 1 unchanged passage …
(C) If loans made under part D of title IV or other education loans offered through Federal programs are included
,
— (i)
a disclosure that the interest rates and fees on such loans are set annually and affect total cost over time
,
; (ii)
a link to any website that includes current information on interest rates and fees
,
;
and
(iii)
a disclosure that such loans have to be repaid and the student can borrow an amount less than the offered loan amount. (D) A link to the College Financing Plan website of the Department (or
the
a
successor website).
(3) Omission of information. An institution of higher education may omit information listed in subsection (c) or paragraph (2) of this subsection from a financial aid offer or supplemental document provided to a student, respectively, if the information— (A) relates to aid— (i) for which the student is ineligible; or (ii) is provided through a program with which the institution does not participate; or (B) is otherwise inapplicable to the student.
… 9 unchanged passages …
(B) notify each institution of higher education that receives Federal financial assistance under this Act of such
best
requirements
practices
and the requirements of subsection (a). (3) Sample of financial aid offers. Not later than July 1, 2029,
and
every other year thereafter,
the
Secretary shall, in a manner consistent with applicable Federal privacy statutes— (A) collect a random representative sample of financial aid offers made by institutions for the most recent award year; and (B) review such offers for compliance with the
requirements of subsection (a
)(1)(A)(i
).
… 2 unchanged passages …
(A) Award year information. The program of study and the award year of such program of study covered by the financial aid offer, and an explanation that the amount of financial aid offered may differ—
… 5 unchanged passages …
(iii) An indication, as applicable, about whether any of the items used to calculate the required costs included in clause (i)
which
are
subject to change are
—
… 3 unchanged passages …
(D) Annual net price
of attendance
. (i) Annual net price
of
for
attendance
completion
. The annual net price
of
for
attendance
completion
for the award year covered by the financial aid offer
, and a disclosure that such amount is an estimate
. (ii)
Disclosure.
Annual
A
net
disclosure
price
that
of
the
attendance.
total
The
and
annual net price of attendance
of
for
the
student
award year covered by the financial aid offer, and a disclosure that such amount— (I)
includes costs that are not required costs
;
and
(II)
is an estimate. (E) Loans. Information on each loan for which the student is eligible for the award year covered by the offer (including any
loan disbursed by the institution
institutional
,
and any other loan (such as a
Federal, State, or private loan
)),
),
including— (i)
the
with
total
respect
amount
to
of
each
type
such
of
loan
— (I) the total amount
offered to the student; (
ii
II
)
for each loan,
any applicable interest rate, including
any
information
capitalization
on
of
circumstances in which
interest
may be capitalized
on the loan, and
any applicable
fees (including origination fees and additional costs);
and
(
iii
III
)
if applicable,
information on any
applicable
loan repayment
plan
assistance
offered by the institution;
and
(
iv
ii
) a disclosure that the interest rates and fees on such loans can affect total cost over time
,
;
and
(iii)
a disclosure that such loans have to be repaid
;
and
(iv) a disclosure that
the student can borrow an amount less than the
recommended
offered
loan amount. (2) Grants and scholarships for the program length. The amount of grant and scholarship aid for the program length of the
student’s
program of study
for which the financial aid offer is provided
.
… 6 unchanged passages …
(5)
Cost
Average
information
costs
for the most recent award year. (A)
Average
In
annual
general.
net
With
price
respect
required
to a program of study
for
completion.
which
Average
the
annual
financial
net
aid
price
offer
required
is
for
provided—
completion
(i)
for the most recent award year for
the
which
program
data
of
is
study.
available—
(
B
I
)
Total
the
average
annual
net price required for completion
.
;
The
and
average
(II)
total
the
net
average annual
price
required
of
for
attendance;
completion
and
based
(ii)
on
with
the
respect
time
to
students who completed a
credential for the program of study
(as
during
determined based on
the most recent award year
).
—
(
C
I
)
Average
the
annual
average
price
total
of
net
attendance.
price
Average
required
annual
for
price
completion
of
based
attendance
on
for
the
most
time
recent
to
award
credential
year
for the program of study
.
; and
(
D
II
)
Total
the
average
annual
total
net price of attendance
. The average annual net price of attendance
based on the time to credential for the program of study
.
(
as determined based on the most recent award year
B
)
(E)
Disclosure. A disclosure that the information provided in
this
subparagraph
paragraph
(A)
is based on
the
required costs and amounts of grant and scholarship aid
applicable to other students
for the most recent award year, and such information may not be applicable to the student receiving the financial aid offer.
… 5 unchanged passages …
(B) Payment. Information on when and how costs described in paragraph (1)(
A
B
) must be paid.
… 1 unchanged passage …
(D) Financial aid information. Information about where a student or the student’s family can seek additional information regarding the financial aid offered, including contact information for the institution’s financial aid office and
a link to
the Department of Education’s
website
student
on
financial aid
website
. (E) College costs and student outcome information. Information about where a student or a student’s family can seek additional information on college costs and student outcomes, including a link to the Department of Education’s College Scorecard website (or
a
successor website) and how to use such website to compare information from institutions of higher education regarding such costs and outcomes.
… 25 unchanged passages …
(A)
Net price determinations. (i)
Total net price required for completion. The term total net price required for completion means, with respect to a student in a program of study— (
I
i
) the required costs charged to such student for the program of study for the time to credential; minus (
II
ii
) the amount of grant and scholarship aid that is available to the student for such program for the time to credential. (
ii
B
) Annual net price required for completion. The term annual net price required for completion means, with respect to a student in a program of study— (
I
i
) the required costs charged to such student for the program of study for an award year; minus (
II
ii
) the amount of grant and scholarship aid that is available to the student for such program for such award year. (4) Net price
required for completion. (A) Net price determinations. (i) Total net price required for completion. The term total net price required for completion means, with respect to a student in a program
of
study— (I) the required costs charged to such student for the program of study for the time to credential; minus (II) the amount of grant and scholarship aid that is available to the student for such program for the time to credential. (ii) Annual net price required for completion. The term annual net price required for completion means, with respect to a student in a program of study— (I) the required costs charged to such student for the program of study for an award year; minus (II) the amount of grant and scholarship aid that is available to the student for such program for such award year. (5) Net price of
attendance.
… 2 unchanged passages …
(ii) the sum, for the
program
time
length
to credential
of the program of study, of all the costs listed in section 472(a) that are not required costs. (B) Annual net price of attendance. The term annual net price of attendance means, with respect to a student in a program of study, the
net
sum
price
of
attendance
the
for
annual
a
net
specific
price
year
required
of
for
the
completion
program
for
of
an
study,
award
determined
year
by
and
disaggregating
the
total
costs
net
listed
price
in
of
section
attendance
472(a)
for
that
the
are
student
not
by
required
each
costs
year of expected enrollment
for
the
such
program
award
length of the program of study
year
. (
6
5
) Program of study.
… 10 unchanged passages …
(
7
6
) Program length. The term program length means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements to obtain the degree or credential awarded for a specific program of study. (
8
7
) Time to credential. The term ‘time to credential’ means, with respect to a student, the actual amount of time in weeks, months, or years it takes the student to complete the requirements to obtain the degree or credential awarded for a specific program of study. (
9
8
) Cost of attendance. The term cost of attendance has the meaning given such term in section 472.
]
(b) Program participation agreement. Section 487 (a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following:
… 3 unchanged passages …
(c) Cost of attendance of a program of study.
DDRamey: This amendment is also included in net price.
(1) Determination of cost of attendance of a program of study.
(A) In general.
Section 472(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)) is amended— (
i
A
) in paragraph (1), by striking carrying the same academic workload and inserting enrolled in the same program of study and carrying the same academic workload; (
ii
B
) in paragraph (2), by striking same course of study and inserting same program of study; and (
iii
C
) in paragraph (14), by striking program and inserting program of study.
… 3 unchanged passages …
What is a markup?
A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.
(a) In general. Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is amended by adding at the end the following:
124. Financial aid offers
(a) Institutional requirements
(1) In general. Beginning on July 1, 2029, an institution of higher education that receives Federal financial assistance under this Act—
(A) shall—
(i) for all financial aid offers (including paper, or mobile-optimized or other electronic offers), include the information (including terminology) listed in subsection (c), and meet the requirements of paragraphs (1) and (2) of subsection (d), in compliance with the requirements published pursuant to subsection (b)(2);
(ii) provide the supplemental content and disclosures described in paragraph (2); and
(iii) for all communications from the institution related to financial aid offers (including the supplemental content and disclosures described in paragraph (2)), use the terminology referenced in subsection (c) in a consistent manner; and
(B) in the case of an electronic financial aid offer that includes a requirement that a student confirm receipt of such offer, may not consider such confirmation an acceptance or rejection of such offer.
(2) Supplemental content and disclosures. Each institution of higher education described in paragraph (1) shall provide, in supplemental documents or through easily accessible links on the institution’s portal or a website, the following:
(A) The renewability requirements and conditions under which the student can expect to receive, for each award year the student is enrolled at the institution, similar amounts of financial aid.
(B) Whether the financial aid offer may change if aid from outside sources is applied after the student receives the initial financial aid offer, and, if applicable, how that financial aid offer will change.
(C) If loans made under part D of title IV or other education loans offered through Federal programs are included—
(i) a disclosure that the interest rates and fees on such loans are set annually and affect total cost over time;
(ii) a link to any website that includes current information on interest rates and fees; and
(iii) a disclosure that such loans have to be repaid and the student can borrow an amount less than the offered loan amount.
(D) A link to the College Financing Plan website of the Department (or a successor website).
(b) Secretarial requirements
(1) Requirements for institutions of higher education
(A) Consumer testing. The Secretary shall—
(i) in consultation with the heads of relevant Federal agencies, not later than 9 months after the date of enactment of the College Financial Aid Clarity Act of 2025, establish a process for consumer testing, with the representatives described in subparagraph (B), requirements for institutions of higher education on formatting financial aid offers to include the information (including terminology) listed in subsection (c), and to meet the requirements of paragraphs (1) and (2) of subsection (d), in a manner that is simple and understandable for students and the students’ families; and
(ii) not later than 8 months after the process for consumer testing is established pursuant to clause (i), conduct and conclude such consumer testing.
(B) Representatives. The representatives described in this subparagraph are representatives of students (including low-income students, first generation college students, adult students, veterans, servicemembers, and prospective students), students’ families (including low-income families, families with first generation college students, and families with prospective students), institutions of higher education, secondary school and postsecondary counselors, nonprofit organizations (including scholarship-granting organizations), private lenders, and States.
(C) Nonapplication of paperwork reduction act. Subchapter I of chapter 35 of title 44, United States Code, shall not apply to the consumer testing process under this subsection.
(2) Publication and notice. Not later than July 1, 2028, the Secretary shall—
(A) publish the requirements developed pursuant to paragraph (1)(A) on a publicly available website; and
(B) notify each institution of higher education that receives Federal financial assistance under this Act of such requirements and the requirements of subsection (a).
(3) Sample of financial aid offers. Not later than July 1, 2029, and every other year thereafter, the Secretary shall, in a manner consistent with applicable Federal privacy statutes—
(A) collect a random representative sample of financial aid offers made by institutions for the most recent award year; and
(B) review such offers for compliance with the requirements of subsection (a)(1)(A)(i).
(c) Information required. To comply with subsection (a), an institution of higher education shall include the following information in any financial aid offer that is made by the institution:
(1) Information for the award year covered by the offer
(A) Award year information. The program of study and the award year of such program of study covered by the financial aid offer, and an explanation that the amount of financial aid offered may differ—
(i) for academic periods not covered by the financial aid offer, such as a summer term or future award year; and
(ii) by program of study.
(B) Annual cost information. Information on the student’s estimated cost of attendance for the award year covered by the financial aid offer, including the following:
(i) The required costs for such award year, including the academic workload used to determined such required costs.
(ii) The cost of attendance for such award year.
(iii) An indication, as applicable, about whether any of the items used to calculate the required costs included in clause (i) are—
(I) estimated based on the previous year; or
(II) set for the award year covered by the financial aid offer.
(C) Annual Grants and scholarships. The amount of grant and scholarship aid for the award year covered by the financial aid offer.
(D) Annual net price
(i) Annual net price for completion. The annual net price for completion for the award year covered by the financial aid offer, and a disclosure that such amount is an estimate.
(ii) Annual net price of attendance. The annual net price of attendance for the award year covered by the financial aid offer, and a disclosure that such amount—
(I) includes costs that are not required costs; and
(II) is an estimate.
(E) Loans. Information on each loan for which the student is eligible for the award year covered by the offer (including any institutional, Federal, State, or private loan), including—
(i) with respect to each such loan—
(I) the total amount offered to the student;
(II) any applicable interest rate, including information on circumstances in which interest may be capitalized on the loan, and any applicable fees (including origination fees and additional costs); and
(III) information on any applicable loan repayment assistance offered by the institution;
(ii) a disclosure that the interest rates and fees on such loans can affect total cost over time;
(iii) a disclosure that such loans have to be repaid; and
(iv) a disclosure that the student can borrow an amount less than the offered loan amount.
(2) Grants and scholarships for the program length. The amount of grant and scholarship aid for the program length of the program of study for which the financial aid offer is provided.
(3) Student employment. Information on work-study employment opportunities (including work-study programs under part C of title IV, institutional work-study programs, or State work-study programs), including—
(A) the maximum annual amount the student may earn through such an employment opportunity; and
(B) a disclosure that any amounts received pursuant to such an employment opportunity may be—
(i) subject to the availability of qualified employment opportunities upon enrollment; and
(ii) disbursed over time as earned by the student.
(4) Net price calculator. A link to the universal net price calculator website described in section 132(c)(4).
(5) Average costs for the most recent award year
(A) In general. With respect to a program of study for which the financial aid offer is provided—
(i) for the most recent award year for which data is available—
(I) the average annual net price required for completion; and
(II) the average annual price of attendance; and
(ii) with respect to students who completed a credential for the program of study during the most recent award year—
(I) the average total net price required for completion based on the time to credential for the program of study; and
(II) the average total net price of attendance based on the time to credential for the program of study.
(B) Disclosure. A disclosure that the information provided in subparagraph (A) is based on the required costs and amounts of grant and scholarship aid applicable to other students for the most recent award year, and such information may not be applicable to the student receiving the financial aid offer.
(6) Process for accepting, adjusting, or declining aid and next steps
(A) Deadlines. The deadlines and a summary of the process (including the next steps) for—
(i) accepting the financial aid offered;
(ii) adjusting the amount of aid offered; and
(iii) declining the aid offered.
(B) Payment. Information on when and how costs described in paragraph (1)(B) must be paid.
(C) Disclosure. A disclosure that verification of information provided on the Free Application for Federal Student Aid may require the student to submit further documentation.
(D) Financial aid information. Information about where a student or the student’s family can seek additional information regarding the financial aid offered, including contact information for the institution’s financial aid office and a link to the Department of Education’s student financial aid website.
(E) College costs and student outcome information. Information about where a student or a student’s family can seek additional information on college costs and student outcomes, including a link to the Department of Education’s College Scorecard website (or a successor website) and how to use such website to compare information from institutions of higher education regarding such costs and outcomes.
(d) Format requirements
(1) In general. To comply with subsection (a), any financial aid offer made by an institution of higher education shall be titled Financial Aid Offer, use plain language wherever possible, and format the information listed in subsection (c) in accordance with paragraph (2).
(2) Format of required information. The information listed in subsection (c) shall be formatted in a financial aid offer made by an institution of higher education as follows:
(A) The information required in subparagraphs (A) through (E) of subsection (c)(1) is listed in such order, under separate headings, and in the same font.
(B) There is a clear distinction between the required costs and any other costs of attendance included in such financial aid offer.
(C) There is a clear distinction between the aid offered under subparagraphs (C) and (E) of subsection (c)(1), including—
(i) by not combining the different types of aid described in such paragraphs; and
(ii) in such subparagraph (E)—
(I) by using the word loan to clearly describe the recommended loan amounts; and
(II) by clearly distinguishing between subsidized and unsubsidized loans.
(D) The terminology referenced in subsection (c) is used in a consistent manner.
(E) Such information is listed—
(i) in a manner that ensures none of the information is inappropriately omitted or deemphasized; and
(ii) in a consistent format for all financial aid offers made by such institution.
(e) Definitions. In this section:
(1) Required costs. The term required costs means the sum of all the items listed in section 472(a) that are required by an institution of higher education for a program of study for the program length of a program of study, for the time to credential for a student, or for an award year of a program of study, as applicable, including—
(A) the tuition and fees normally assessed a student enrolled in such program of study carrying the same academic workload, as determined by the institution; and
(B) in a case in which the institution requires a student to reside in institutionally owned or operated housing or to use institutionally owned or operated food services, the applicable standard allowance for such housing or food services determined by the institution in accordance with section 472(a)(5).
(2) Amount of grant and scholarship aid. The term amount of grant and scholarship aid means the sum of all of the grant and scholarship aid that is available to the student for the program length of a program of study, for the time to credential for a student, or for an award year of a program of study, as applicable, that a student does not have to repay, including need-based, merit-based, or athletic-based, or another type of grant and scholarship aid, that is—
(A) offered under title IV;
(B) offered through other Federal programs;
(C) offered by the institution;
(D) offered by a State; or
(E) offered by any other source.
(3) Net price required for completion
(A) Total net price required for completion. The term total net price required for completion means, with respect to a student in a program of study—
(i) the required costs charged to such student for the program of study for the time to credential; minus
(ii) the amount of grant and scholarship aid that is available to the student for such program for the time to credential.
(B) Annual net price required for completion. The term annual net price required for completion means, with respect to a student in a program of study—
(i) the required costs charged to such student for the program of study for an award year; minus
(ii) the amount of grant and scholarship aid that is available to the student for such program for such award year.
(4) Net price of attendance
(A) Total net price of attendance. The term total net price of attendance means, with respect to a student in a program of study, the sum of—
(i) the total net price required for completion; and
(ii) the sum, for the time to credential of the program of study, of all the costs listed in section 472(a) that are not required costs.
(B) Annual net price of attendance. The term annual net price of attendance means, with respect to a student in a program of study, the sum of the annual net price required for completion for an award year and the costs listed in section 472(a) that are not required costs for such award year.
(5) Program of study
(A) In general. The term program of study—
(i) means an eligible program at an institution of higher education that is classified by a combination of—
(I) one or more CIP codes; and
(II) one credential level, determined by the credential awarded upon completion of the program; and
(ii) does not include a program of study abroad.
(B) Cip code. The term CIP code means the six-digit taxonomic identification code assigned by an institution of higher education to a specific program of study at the institution, determined by the institution of higher education in accordance with the Classification of Instructional Programs published by the National Center for Education Statistics.
(C) Credential level
(i) In general. The term credential level means the level of the degree or other credential awarded by an institution of higher education to students who complete a program of study of the institution. Each degree or other credential awarded by an institution shall be categorized by the institution as either undergraduate credential level or graduate credential level.
(ii) Undergraduate credential. When used with respect to a credential or credential level, the term undergraduate credential includes credentials such as an undergraduate certificate, an associate degree, a bachelor’s degree, and a post-baccalaureate certificate (including the coursework specified in paragraphs (3)(B) and (4)(B) of section 484(b)).
(iii) Graduate credential. When used with respect to a credential or credential level, the term graduate credential includes credentials such as a master’s degree, a doctoral degree, a professional degree (as defined under section 668.2 of title 34, Code of Federal Regulations), and a postgraduate certificate.
(6) Program length. The term program length means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements to obtain the degree or credential awarded for a specific program of study.
(7) Time to credential. The term ‘time to credential’ means, with respect to a student, the actual amount of time in weeks, months, or years it takes the student to complete the requirements to obtain the degree or credential awarded for a specific program of study.
(8) Cost of attendance. The term cost of attendance has the meaning given such term in section 472.
(b) Program participation agreement. Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following:
(30) The institution will comply with the requirements of section 124(a).
(c) Cost of attendance of a program of study
(1) Determination of cost of attendance of a program of study. Section 472(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)) is amended—
(A) in paragraph (1), by striking carrying the same academic workload and inserting enrolled in the same program of study and carrying the same academic workload;
(B) in paragraph (2), by striking same course of study and inserting same program of study; and
(C) in paragraph (14), by striking program and inserting program of study.
(2) Disclosure. Section 472(c) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(c)) is amended—
(A) by inserting of each program of study at the institution after cost of attendance; and
(B) by striking of the institution and inserting of such programs of study at the institution.