WASHINGTON—Today, the House Committee on Education and Workforce advanced the College Financial Aid Clarity Act, legislation led by House Republican Conference Chairwoman Lisa McClain (R-Mich.) to ensure students and families receive clear, honest, and easy-to-understand financial aid information before making decisions about college.
“Right now, students are receiving financial aid offers that bury the true price of attendance in misleading information or fine print. The College Financial Aid Clarity Act fixes that by requiring colleges to present financial aid information clearly, consistently, and honestly. I’m proud to see this commonsense bill move forward,” Chairwoman McClain 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.
