H.R. 6502: College Financial Aid Clarity Act of 2025

The College Financial Aid Clarity Act of 2025 aims to improve the transparency and consistency of financial aid offers from higher education institutions in the United States. The bill proposes specific requirements that these institutions must follow when providing financial aid offers to students beginning July 1, 2029. Here is a summary of the key provisions outlined in the bill:

Financial Aid Offer Requirements

Institutions that receive federal financial assistance must ensure that:

1. All financial aid offers include specific information and standardized terminology.
2. Supplemental content and disclosures about the financial aid are also provided.
3. The terminology used in communications related to financial aid must be consistent and in line with the established requirements.
4. Electronic offers requiring confirmation of receipt cannot use that confirmation as an acceptance or rejection of the offer.

Supplemental Disclosure Requirements

Institutions are required to provide additional information in a clear and accessible manner, including:

1. Details on the conditions for renewing financial aid and how it may change with outside funding.
2. Information about the terms of loans included in the aid offer, including interest rates and repayment obligations.
3. Links to resources such as the College Financing Plan website.

Consumer Testing and Implementation Timeline

The Secretary of Education must establish a consumer testing process to ensure that the financial aid offers are clear and understandable. Within nine months of the bill's enactment, the Secretary will develop requirements for formatting these offers, with a deadline of July 1, 2028, for publishing the finalized requirements.

Content Requirements for Financial Aid Offers

Financial aid offers must delineate various mandatory pieces of information, including:

1. The award year covered by the offer and any conditions that might affect the amount of aid offered in future years.
2. Estimated costs of attendance and required costs associated with attendance, including tuition and fees.
3. The total amount of available grants and scholarships and any loans included in the offer.
4. Details on work-study opportunities available to the student.

Format and Presentation

The financial aid offers must be clearly titled as "Financial Aid Offer" and presented using plain language. Essential pieces of information must be formatted clearly, making it easy for students and their families to understand their financial aid packages.

Omission of Inapplicable Information

Institutions may omit information from financial aid offers if it pertains to aid for which the student does not qualify or if it relates to programs the institution does not participate in.

Definitions and Additional Clarifications

The bill includes specific definitions for terms like "required costs," "institution of higher education," and "program of study" to ensure clarity in how institutions should present financial aid information.

Program Participation Agreement

Higher education institutions must agree to comply with the new requirements as part of their program participation agreements to continue receiving federal financial aid.

Relevant Companies

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