[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6502 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6502
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
_______________________________________________________________________
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 weblinks to 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.
``(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, a disclosure that the interest rates and
fees on such loans are set annually and affect total
cost over time, a link to any website that includes
current information on interest rates and fees, and 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 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.
``(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 best practices and the requirements of
subsection (a).
``(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 award year
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) which are
subject to change 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 of attendance.--
``(i) Annual net price of attendance.--The
annual net price of attendance for the award
year covered by the financial aid offer.
``(ii) Disclosure.--A disclosure that the
total and annual net price of attendance of the
student includes costs that are not required
costs and 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, and any other loan (such as a Federal,
State, or private loan)), including--
``(i) the total amount of each type of loan
offered to the student;
``(ii) for each loan, any applicable
interest rate, including any capitalization of
interest on the loan, and fees (including
origination fees and additional costs);
``(iii) if applicable, information on any
loan repayment plan offered by the institution;
and
``(iv) a disclosure that the interest rates
and fees on such loans can affect total cost
over time, and a disclosure that such loans
have to be repaid and the student can borrow an
amount less than the recommended 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.
``(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) Cost information for the most recent award year.--
``(A) Average annual net price required for
completion.--Average annual net price required for
completion for the most recent award year for the
program of study.
``(B) Total average net price required for
completion.--The average total net price required for
completion based on the time to credential for the
program of study (as determined based on the most
recent award year).
``(C) Average annual price of attendance.--Average
annual price of attendance for the most recent award
year for the program of study.
``(D) Total average annual 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)
``(E) Disclosure.--A disclosure that the
information provided in this paragraph is based on
required costs and amounts of grant and scholarship aid
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)(A) 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 the Department
of Education's website on financial aid.
``(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 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 stu