HR6502-119

2. Financial aid offers 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: Beginning on July 1, 2029, an institution of higher education that receives Federal financial assistance under this Act— shall— 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); provide the supplemental content and disclosures described in paragraph (2); and 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 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. 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: 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. 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. 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. A link to the College Financing Plan website of the Department (or the successor website). 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— relates to aid— for which the student is ineligible; or is provided through a program with which the institution does not participate; or is otherwise inapplicable to the student. The Secretary shall— 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 not later than 8 months after the process for consumer testing is established pursuant to clause (i), conduct and conclude such consumer testing. 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. Subchapter I of chapter 35 of title 44, United States Code, shall not apply to the consumer testing process under this subsection. Not later than July 1, 2028, the Secretary shall— publish the requirements developed pursuant to paragraph (1)(A) on a publicly available website; and notify each institution of higher education that receives Federal financial assistance under this Act of such best practices and the requirements of subsection (a). 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: The award year covered by the financial aid offer, and an explanation that the amount of financial aid offered may differ— for academic periods not covered by the financial aid offer, such as a summer term or future award year; and by program of study. Information on the student’s estimated cost of attendance for the award year covered by the financial aid offer, including the following: The required costs for such award year, including the academic workload used to determined such required costs. The cost of attendance for such award year. 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— estimated based on the previous year; or set for the award year covered by the financial aid offer. The amount of grant and scholarship aid for the award year covered by the financial aid offer. The annual net price of attendance for the award year covered by the financial aid offer. 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. 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— the total amount of each type of loan offered to the student; for each loan, any applicable interest rate, including any capitalization of interest on the loan, and fees (including origination fees and additional costs); if applicable, information on any loan repayment plan offered by the institution; and 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. The amount of grant and scholarship aid for the program length of the student’s program of study. 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— the maximum annual amount the student may earn through such an employment opportunity; and a disclosure that any amounts received pursuant to such an employment opportunity may be— subject to the availability of qualified employment opportunities upon enrollment; and disbursed over time as earned by the student. A link to the universal net price calculator website described in section 132(c)(4). Average annual net price required for completion for the most recent award year for the program of study. 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). Average annual price of attendance for the most recent award year for the program of study. 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) 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. The deadlines and a summary of the process (including the next steps) for— accepting the financial aid offered; adjusting the amount of aid offered; and declining the aid offered. Information on when and how costs described in paragraph (1)(A) must be paid. A disclosure that verification of information provided on the Free Application for Federal Student Aid may require the student to submit further documentation. 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. 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. 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). The information listed in subsection (c) shall be formatted in a financial aid offer made by an institution of higher education as follows: 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. There is a clear distinction between the required costs and any other costs of attendance included in such financial aid offer. There is a clear distinction between the aid offered under subparagraphs (C) and (E) of subsection (c)(1), including— by not combining the different types of aid described in such paragraphs; and in such subparagraph (E)— by using the word loan to clearly describe the recommended loan amounts; and by clearly distinguishing between subsidized and unsubsidized loans. The terminology referenced in subsection (c) is used in a consistent manner. Such information is listed— in a manner that ensures none of the information is inappropriately omitted or deemphasized; and in a consistent format for all financial aid offers made by such institution. In this section: 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— 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 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). 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— offered under title IV; offered through other Federal programs; offered by the institution; offered by a State; or offered by any other source. The term total net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for the time to credential; minus the amount of grant and scholarship aid that is available to the student for such program for the time to credential. The term annual net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for an award year; minus the amount of grant and scholarship aid that is available to the student for such program for such award year. The term total net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for the time to credential; minus the amount of grant and scholarship aid that is available to the student for such program for the time to credential. The term annual net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for an award year; minus the amount of grant and scholarship aid that is available to the student for such program for such award year. The term total net price of attendance means, with respect to a student in a program of study, the sum of— the total net price required for completion; and the sum, for the program length of the program of study, of all the costs listed in section 472(a) that are not required costs. The term annual net price of attendance means, with respect to a student in a program of study, the net price of attendance for a specific year of the program of study, determined by disaggregating the total net price of attendance for the student by each year of expected enrollment for the program length of the program of study. The term program of study— means an eligible program at an institution of higher education that is classified by a combination of— one or more CIP codes; and one credential level, determined by the credential awarded upon completion of the program; and does not include a program of study abroad. 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. 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. 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)). 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. 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. 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. The term cost of attendance has the meaning given such term in section 472. Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following: The institution will comply with the requirements of section 124(a). Section 472(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)) is amended— 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; in paragraph (2), by striking same course of study and inserting same program of study; and in paragraph (14), by striking program and inserting program of study. Section 472(c) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(c)) is amended— by inserting of each program of study at the institution after cost of attendance; and by striking of the institution and inserting of such programs of study at the institution. 124.Financial aid offers (a)Institutional requirements (1)In generalBeginning 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 disclosuresEach 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 informationAn 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 testingThe 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)RepresentativesThe 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 actSubchapter I of chapter 35 of title 44, United States Code, shall not apply to the consumer testing process under this subsection. (2)Publication and noticeNot 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 requiredTo 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 informationThe 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 informationInformation 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 scholarshipsThe 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 attendanceThe annual net price of attendance for the award year covered by the financial aid offer. (ii)DisclosureA 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)LoansInformation 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 lengthThe amount of grant and scholarship aid for the program length of the student’s program of study. (3)Student employmentInformation 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 calculatorA 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 completionAverage annual net price required for completion for the most recent award year for the program of study. (B)Total average net price required for completionThe 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 attendanceAverage annual price of attendance for the most recent award year for the program of study. (D)Total average annual net price of attendanceThe 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)DisclosureA 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)DeadlinesThe 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)PaymentInformation on when and how costs described in paragraph (1)(A) must be paid. (C)DisclosureA 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 informationInformation 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 informationInformation 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 generalTo 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 informationThe 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)DefinitionsIn this section: (1)Required costsThe 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 aidThe 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)Net price determinations (i)Total net price required for completionThe 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. (ii)Annual net price required for completionThe 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 required for completion (A)Net price determinations (i)Total net price required for completionThe 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. (ii)Annual net price required for completionThe 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. (5)Net price of attendance (A)Total net price of attendanceThe 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 program length of the program of study, of all the costs listed in section 472(a) that are not required costs. (B)Annual net price of attendanceThe term annual net price of attendance means, with respect to a student in a program of study, the net price of attendance for a specific year of the program of study, determined by disaggregating the total net price of attendance for the student by each year of expected enrollment for the program length of the program of study. (6)Program of study (A)In generalThe 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 codeThe 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 generalThe 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 credentialWhen 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 credentialWhen 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. (7)Program lengthThe 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. (8)Time to credentialThe 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. (9)Cost of attendanceThe term cost of attendance has the meaning given such term in section 472. . (30)The institution will comply with the requirements of section 124(a)..

124. Financial aid offers Beginning on July 1, 2029, an institution of higher education that receives Federal financial assistance under this Act— shall— 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); provide the supplemental content and disclosures described in paragraph (2); and 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 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. 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: 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. 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. 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. A link to the College Financing Plan website of the Department (or the successor website). 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— relates to aid— for which the student is ineligible; or is provided through a program with which the institution does not participate; or is otherwise inapplicable to the student. The Secretary shall— 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 not later than 8 months after the process for consumer testing is established pursuant to clause (i), conduct and conclude such consumer testing. 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. Subchapter I of chapter 35 of title 44, United States Code, shall not apply to the consumer testing process under this subsection. Not later than July 1, 2028, the Secretary shall— publish the requirements developed pursuant to paragraph (1)(A) on a publicly available website; and notify each institution of higher education that receives Federal financial assistance under this Act of such best practices and the requirements of subsection (a). 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: The award year covered by the financial aid offer, and an explanation that the amount of financial aid offered may differ— for academic periods not covered by the financial aid offer, such as a summer term or future award year; and by program of study. Information on the student’s estimated cost of attendance for the award year covered by the financial aid offer, including the following: The required costs for such award year, including the academic workload used to determined such required costs. The cost of attendance for such award year. 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— estimated based on the previous year; or set for the award year covered by the financial aid offer. The amount of grant and scholarship aid for the award year covered by the financial aid offer. The annual net price of attendance for the award year covered by the financial aid offer. 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. 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— the total amount of each type of loan offered to the student; for each loan, any applicable interest rate, including any capitalization of interest on the loan, and fees (including origination fees and additional costs); if applicable, information on any loan repayment plan offered by the institution; and 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. The amount of grant and scholarship aid for the program length of the student’s program of study. 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— the maximum annual amount the student may earn through such an employment opportunity; and a disclosure that any amounts received pursuant to such an employment opportunity may be— subject to the availability of qualified employment opportunities upon enrollment; and disbursed over time as earned by the student. A link to the universal net price calculator website described in section 132(c)(4). Average annual net price required for completion for the most recent award year for the program of study. 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). Average annual price of attendance for the most recent award year for the program of study. 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) 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. The deadlines and a summary of the process (including the next steps) for— accepting the financial aid offered; adjusting the amount of aid offered; and declining the aid offered. Information on when and how costs described in paragraph (1)(A) must be paid. A disclosure that verification of information provided on the Free Application for Federal Student Aid may require the student to submit further documentation. 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. 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. 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). The information listed in subsection (c) shall be formatted in a financial aid offer made by an institution of higher education as follows: 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. There is a clear distinction between the required costs and any other costs of attendance included in such financial aid offer. There is a clear distinction between the aid offered under subparagraphs (C) and (E) of subsection (c)(1), including— by not combining the different types of aid described in such paragraphs; and in such subparagraph (E)— by using the word loan to clearly describe the recommended loan amounts; and by clearly distinguishing between subsidized and unsubsidized loans. The terminology referenced in subsection (c) is used in a consistent manner. Such information is listed— in a manner that ensures none of the information is inappropriately omitted or deemphasized; and in a consistent format for all financial aid offers made by such institution. In this section: 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— 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 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). 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— offered under title IV; offered through other Federal programs; offered by the institution; offered by a State; or offered by any other source. The term total net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for the time to credential; minus the amount of grant and scholarship aid that is available to the student for such program for the time to credential. The term annual net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for an award year; minus the amount of grant and scholarship aid that is available to the student for such program for such award year. The term total net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for the time to credential; minus the amount of grant and scholarship aid that is available to the student for such program for the time to credential. The term annual net price required for completion means, with respect to a student in a program of study— the required costs charged to such student for the program of study for an award year; minus the amount of grant and scholarship aid that is available to the student for such program for such award year. The term total net price of attendance means, with respect to a student in a program of study, the sum of— the total net price required for completion; and the sum, for the program length of the program of study, of all the costs listed in section 472(a) that are not required costs. The term annual net price of attendance means, with respect to a student in a program of study, the net price of attendance for a specific year of the program of study, determined by disaggregating the total net price of attendance for the student by each year of expected enrollment for the program length of the program of study. The term program of study— means an eligible program at an institution of higher education that is classified by a combination of— one or more CIP codes; and one credential level, determined by the credential awarded upon completion of the program; and does not include a program of study abroad. 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. 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. 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)). 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. 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. 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. The term cost of attendance has the meaning given such term in section 472.