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

This section adds a new section 124 to Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) to standardize financial aid offers provided by institutions of higher education receiving federal financial assistance. Beginning July 1, 2029, such institutions must (1) include in all financial aid offers (paper or electronic) the information and terminology specified in subsection (c)—such as award year, program of study, estimated cost of attendance (including required costs and academic workload used), grants and scholarships—and meet formatting requirements developed by the Secretary of Education; (2) provide supplemental content and disclosures (e.g., renewability conditions, effects of outside aid, loan interest rate and repayment details, link to the Department's College Financing Plan website); and (3) use specified terminology consistently in related communications, with electronic receipt confirmations not constituting acceptance or rejection. The Secretary must (1) establish a consumer-testing process within nine months of enactment (in consultation with specified stakeholders, exempt from Paperwork Reduction Act), conclude testing eight months later, publish requirements by July 1, 2028, and notify institutions; and (2) collect and review biennial compliance samples of financial aid offers beginning July 1, 2029. Separately, this section revises the definition of cost of attendance under 20 U.S.C. 1087ll(a) to base tuition and fees, and books/course materials/supplies/equipment costs, on students enrolled in the same program of study and carrying the same academic workload (previously, carrying the same academic workload; same course of study). (Thus, financial aid offers must reflect program-specific costs.)