[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6502 Reported in House (RH)]
<DOC>
Union Calendar No. 394
119th CONGRESS
2d Session
H. R. 6502
[Report No. 119-460]
To amend the Higher Education Act of 1965 to require the Secretary of
Education to develop requirements for institutions of higher education
on formatting financial aid offer forms, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 9, 2025
Mrs. McClain (for herself and Mrs. Kim) introduced the following bill;
which was referred to the Committee on Education and Workforce
January 21, 2026
Additional sponsors: Mr. Norcross and Mr. Vindman
January 21, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced December
9, 2025]
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to require the Secretary of
Education to develop requirements for institutions of higher education
on formatting financial aid offer forms, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``College Financial Aid Clarity Act of
2025''.
SEC. 2. FINANCIAL AID OFFERS.
(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:
``SEC. 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''.
Union Calendar No. 394
119th CONGRESS
2d Session
H. R. 6502
[Report No. 119-460]
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to require the Secretary of
Education to develop requirements for institutions of higher education
on formatting financial aid offer forms, and for other purposes.
_______________________________________________________________________
January 21, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed