WASHINGTON—Today, Representatives Lisa McClain (R-Mich.) and Young Kim (R-Calif.) introduced the College Financial Aid Clarity Act, legislation that strengthens protections for students and families by requiring clear, consistent, and transparent college financial aid offer letters.
“The College Financial Aid Clarity Act puts an end to confusing financial aid letters and ensures families get the honest answers they deserve,” Rep. McClain said. “Too many students unknowingly take on unnecessary debt because some colleges present loans like free aid or hide essential costs. This bill brings long-overdue transparency so students can make informed decisions about their education.”
“After putting myself through school and raising four kids, I have experienced firsthand how confusing the financial aid process can be. Students and families deserve clear, honest information about what college will truly cost,” Rep. Kim said. “The College Financial Aid Clarity Act ensures colleges provide straightforward, consistent financial aid offers so students can compare options, avoid debt, and make informed decisions about their future. I’m grateful to Rep. McClain for championing this effort, and proud to continue leading solutions that bring transparency and accountability to higher education.”
“Students, families, and borrowers deserve transparency so they know upfront how much a college education will cost. Too often, students are surprised when a college degree costs far more than advertised as schools tack on fees and mislead students about loans on financial award letters. As a result, borrowers carry unexpectedly large student loan debt—limiting their ability to chase the American Dream. Republicans are passing innovative solutions like the Working Families Tax Cuts to bring down college costs, make education more affordable, and improve student outcomes. This bill is another strong step towards putting more money back in Americans’ pockets and expanding access to education that is worth the cost,” Education and Workforce Committee Chairman Tim Walberg said.
The College Financial Aid Clarity Act will:
- Require the U.S. Department of Education to develop a standardized, consumer-tested format for all college financial aid offers.
- Mandate all institutions receiving federal funds to use this transparent format starting July 1, 2029.
- Ensure plain-language, consistent terminology across all schools, with clear separation of:
- Grants and scholarships vs. loans
- Required program costs vs. optional cost-of-attendance items
- Subsidized vs. unsubsidized loan types
- Require disclosures of interest rates, fees, work-study eligibility, and annual/total net price.
- Provide families with clear instructions for accepting, declining, or adjusting aid—without allowing institutions to treat electronic confirmations as acceptance.
- Align cost-of-attendance definitions with program-specific metrics and strengthen compliance in institutions’ federal program participation agreements.
Click here to read the full text of the bill.
