H.R. 6502

[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