HR6498-119

What This Bill Does

The Student Financial Clarity Act rewrites section 132 of the Higher Education Act on transparency in college tuition for consumers. It defines the College Scorecard website and builds program-level pricing concepts around required costs, grant and scholarship aid, and total net price. Required costs include tuition and fees normally assessed for a student in the same program of study and, when required by the institution, allowances for institutionally owned or operated housing or food services. Grant and scholarship aid includes title IV aid, other federal aid, institutional aid, state aid, and other grants or scholarships a student does not have to repay.

The bill also updates Higher Education Act cost-of-attendance provisions so references are tied to each program of study at an institution. It adds a definition of program of study based on one or more CIP codes and one credential level, excluding study abroad programs. It defines CIP code by reference to the National Center for Education Statistics Classification of Instructional Programs and defines credential level by the degree or credential awarded on completion. The bill takes effect July 1, 2027 and applies beginning with award year 2027-2028.

Who Benefits and How

Prospective students benefit because program-level required costs, grant aid, and net price information make it easier to compare the real cost of credentials. Families comparing colleges benefit from clearer College Scorecard pricing categories tied to programs of study rather than only institution-wide figures. Student aid counselors benefit from more standardized cost terminology. Department of Education College Scorecard staff benefit from statutory direction for program-level data categories. State grant agencies benefit when their grants are explicitly included in the grant and scholarship aid definition.

Who Bears the Burden and How

Institutions of higher education must align tuition, fee, housing, food-service, grant, scholarship, and cost-of-attendance data to program-of-study categories. College financial-aid offices must classify programs by CIP code and credential level and support program-level disclosures. Department of Education data systems staff must update the College Scorecard and successor systems by the July 1, 2027 effective date. NCES classification staff may need to support consistent use of CIP codes. Institutional research offices must produce data for award year 2027-2028 and subsequent award years.

Key Provisions

• Rewrites Higher Education Act section 132 transparency rules for the College Scorecard website.
• Defines required costs by program of study, including tuition, fees, and required institutional housing or food services.
• Defines grant and scholarship aid to include title IV, other federal, institutional, state, and other non-repayable aid.
• Provides program-level net-price terminology for consumer comparison.
• Modifies cost-of-attendance provisions to refer to each program of study.
• Defines program of study using CIP codes and credential levels.
• Provides a July 1, 2027 effective date for award year 2027-2028 and later.