IB 
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] 
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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. 
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Be it enacted by the Senate and House of Representa-
tives 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 Edu-
cation 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 Fed-
eral financial assistance under this Act— 
‘‘(A) shall— 
‘‘(i) for all financial aid offers (includ-
ing paper, or mobile-optimized or other elec-
tronic offers), include the information (in-
cluding terminology) listed in subsection 
(c), and meet the requirements of para-
graphs (1) and (2) of subsection (d), in 
compliance with the requirements published 
pursuant to subsection (b)(2); 
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‘‘(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 stu-
dent confirm receipt of such offer, may not con-
sider such confirmation an acceptance or rejec-
tion of such offer. 
‘‘(2) SUPPLEMENTAL
CONTENT
AND
DISCLO-
SURES.—Each institution of higher education de-
scribed in paragraph (1) shall provide, in supple-
mental 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 en-
rolled at the institution, similar amounts of fi-
nancial aid. 
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‘‘(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 in-
cludes 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— 
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‘‘(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 sub-
paragraph (B), requirements for institu-
tions of higher education on formatting fi-
nancial aid offers to include the informa-
tion (including terminology) listed in sub-
section (c), and to meet the requirements of 
paragraphs (1) and (2) of subsection (d), in 
a manner that is simple and understand-
able 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 con-
clude such consumer testing. 
‘‘(B) REPRESENTATIVES.—The representa-
tives described in this subparagraph are rep-
resentatives of students (including low-income 
students, first generation college students, adult 
students, veterans, servicemembers, and prospec-
tive students), students’ families (including low- 
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income families, families with first generation 
college students, and families with prospective 
students), institutions of higher education, sec-
ondary school and postsecondary counselors, non-
profit 
organizations 
(including 
scholarship- 
granting organizations), private lenders, and 
States. 
‘‘(C) NONAPPLICATION OF PAPERWORK RE-
DUCTION ACT.—Subchapter I of chapter 35 of 
title 44, United States Code, shall not apply to 
the consumer testing process under this sub-
section. 
‘‘(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 edu-
cation that receives Federal financial assistance 
under this Act of such requirements and the re-
quirements of subsection (a). 
‘‘(3) SAMPLE OF FINANCIAL AID OFFERS.—Not 
later than July 1, 2029, and every other year there-
after, the Secretary shall, in a manner consistent with 
applicable Federal privacy statutes— 
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‘‘(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 sub-
section (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 COV-
ERED BY THE OFFER.— 
‘‘(A) AWARD YEAR INFORMATION.—The pro-
gram of study and the award year of such pro-
gram 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.—Infor-
mation on the student’s estimated cost of attend-
ance for the award year covered by the financial 
aid offer, including the following: 
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‘‘(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 cal-
culate the required costs included in clause 
(i) are— 
‘‘(I) estimated based on the pre-
vious year; or 
‘‘(II) set for the award year cov-
ered by the financial aid offer. 
‘‘(C) 
ANNUAL
GRANTS
AND
SCHOLAR-
SHIPS.—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 COMPLE-
TION.—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 ATTEND-
ANCE.—The annual net price of attendance 
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for the award year covered by the financial 
aid offer, and a disclosure that such 
amount— 
‘‘(I) includes costs that are not re-
quired 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 
cir-
cumstances in which interest may be 
capitalized on the loan, and any appli-
cable fees (including origination fees 
and additional costs); and 
‘‘(III) information on any appli-
cable 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; 
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‘‘(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 PRO-
GRAM LENGTH.—The amount of grant and scholar-
ship 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, insti-
tutional work-study programs, or State work-study 
programs), including— 
‘‘(A) the maximum annual amount the stu-
dent may earn through such an employment op-
portunity; and 
‘‘(B) a disclosure that any amounts received 
pursuant to such an employment opportunity 
may be— 
‘‘(i) subject to the availability of quali-
fied employment opportunities upon enroll-
ment; and 
‘‘(ii) disbursed over time as earned by 
the student. 
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‘‘(4) NET PRICE CALCULATOR.—A link to the 
universal net price calculator website described in sec-
tion 132(c)(4). 
‘‘(5) AVERAGE COSTS FOR THE MOST RECENT 
AWARD YEAR.— 
‘‘(A) IN GENERAL.—With respect to a pro-
gram 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 com-
pleted a credential for the program of study 
during the most recent award year— 
‘‘(I) the average total net price re-
quired 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 creden-
tial for the program of study. 
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‘‘(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 infor-
mation may not be applicable to the student re-
ceiving 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 of-
fered; 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 re-
quire the student to submit further documenta-
tion. 
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‘‘(D) FINANCIAL AID INFORMATION.—Infor-
mation about where a student or the student’s 
family can seek additional information regard-
ing the financial aid offered, including contact 
information for the institution’s financial aid of-
fice and a link to the Department of Education’s 
student financial aid website. 
‘‘(E) COLLEGE COSTS AND STUDENT OUT-
COME INFORMATION.—Information about where 
a student or a student’s family can seek addi-
tional information on college costs and student 
outcomes, including a link to the Department of 
Education’s College Scorecard website (or a suc-
cessor 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 for-
mat the information listed in subsection (c) in ac-
cordance with paragraph (2). 
‘‘(2) FORMAT OF REQUIRED INFORMATION.—The 
information listed in subsection (c) shall be formatted 
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‘‘(i) in a manner that ensures none of 
the information is inappropriately omitted 
or deemphasized; and 
‘‘(ii) in a consistent format for all fi-
nancial 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 creden-
tial 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 car-
rying the same academic workload, as deter-
mined by the institution; and 
‘‘(B) in a case in which the institution re-
quires a student to reside in institutionally 
owned or operated housing or to use institution-
ally owned or operated food services, the applica-
ble standard allowance for such housing or food 
services determined by the institution in accord-
ance with section 472(a)(5). 
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‘‘(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 creden-
tial 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 ath-
letic-based, or another type of grant and scholarship 
aid, that is— 
‘‘(A) offered under title IV; 
‘‘(B) offered through other Federal pro-
grams; 
‘‘(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 
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‘‘(ii) the amount of grant and scholar-
ship 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 re-
quired 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 scholar-
ship 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 list-
ed in section 472(a) that are not required 
costs. 
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‘‘(B) ANNUAL
NET
PRICE
OF
ATTEND-
ANCE.—The term ‘annual net price of attend-
ance’ means, with respect to a student in a pro-
gram 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 re-
quired 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 clas-
sified by a combination of— 
‘‘(I) one or more CIP codes; and 
‘‘(II) one credential level, deter-
mined 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 Instruc-
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tional Programs published by the National Cen-
ter for Education Statistics. 
‘‘(C) CREDENTIAL LEVEL.— 
‘‘(i) IN GENERAL.—The term ‘creden-
tial level’ means the level of the degree or 
other credential awarded by an institution 
of higher education to students who com-
plete a program of study of the institution. 
Each degree or other credential awarded by 
an institution shall be categorized by the in-
stitution 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 de-
gree, a bachelor’s degree, and a post-bacca-
laureate 
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 creden-
tial level, the term ‘graduate credential’ in-
cludes credentials such as a master’s degree, 
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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, mar-
keting 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 ac-
tual amount of time in weeks, months, or years it 
takes the student to complete the requirements to ob-
tain 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 sec-
tion 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 re-
quirements of section 124(a).’’. 
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(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 ‘‘en-
rolled in the same program of study and car-
rying 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 ‘‘pro-
gram’’ 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 in-
serting ‘‘of such programs of study at the institu-
tion’’. 
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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 re-
quire the Secretary of Education to develop re-
quirements 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 Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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