[House Report 119-461]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-461
=======================================================================
STUDENT FINANCIAL CLARITY ACT OF 2025
----------------
January 21, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
----------------
Mr. Walberg, from the Committee on Education and Workforce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 6498]
The Committee on Education and Workforce, to whom was
referred the bill (H.R. 6498) to amend the Higher Education Act
of 1965 to increase transparency in college tuition for
consumers, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Student Financial Clarity Act of
2025''.
SEC. 2. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
(a) Amendment.--Section 132 of the Higher Education Act of 1965 (20
U.S.C. 1015a) is amended by striking subsections (a) through (j) and
inserting the following:
``(a) Definitions.--In this section:
``(1) College scorecard website.--The term `College Scorecard
website' means the College Scorecard website required under
subsection (b) and includes any successor website.
``(2) Cost of attendance.--The term `cost of attendance' has
the meaning given such term in section 472(a).
``(3) Required costs.--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--
``(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).
``(4) Amount of grant and scholarship aid.--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--
``(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.
``(5) Net price required for completion.--
``(A) Total net price required for completion.--The
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.
``(B) Annual net price required for completion.--The
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.
``(6) Net price of attendance.--
``(A) Total net price of attendance.--The 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 time to credential,
of all the costs listed in section 472(a) that
are not required costs.
``(B) Annual net price of attendance.--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 the
student's time to credential.
``(7) Program length.--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.
``(8) Time to credential.--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.
``(b) Consumer Information.--
``(1) Availability of information for title iv institutions
and programs.--Not later than 18 months after the effective
date of this subsection, the Secretary shall make publicly
available on the College Scorecard website the following
information with respect to students of the institution who
have received Federal financial assistance described in
paragraph (2)(I), for the most recent award year for which such
information is available:
``(A) Institutions.--With respect to each institution
of higher education that participates in a program
under title IV, the following:
``(i) A link to the website of the
institution.
``(ii) A link to the Universal Net Price
calculator described in subsection (c) and, if
applicable, a link to any net price calculator
developed by the institution in accordance with
paragraph (7) of such subsection.
``(iii) Information on the type of
institution, including predominant and highest
credential awarded, research intensity, and
programs of study offered.
``(iv) In the case of an institution that
requires scores for a college entrance
examination (such as the SAT or ACT) to be
submitted, data on such submitted scores.
``(v) The acceptance rate, determined by
calculating the percentage of individuals who
submitted a completed application to the
institution who were accepted for enrollment.
``(vi) The institution's cohort default rate,
as defined under section 435(m).
``(vii) A link to the website of the
institution containing the information on
campus safety required to be collected under
section 485(i).
``(B) Institutions and programs of study.--With
respect to each such institution and to each program of
study at each such institution, the following:
``(i) The geographic location.
``(ii) Information on student enrollment,
including the number and percentage of students
enrolled full-time, less than full-time, and
enrolled in distance education.
``(iii) Information on the number of degree-
or certificate-seeking undergraduate students
who have transferred from another institution.
``(iv) Information on student progression and
completion, including time to credential and
rates of withdrawal, retention, transfer, or
completion.
``(v) Information on college costs and
financial aid, including--
``(I) the average, median, minimum,
and maximum values of--
``(aa) the required costs for
such award year (determined for
an institution based on the
required costs for all programs
of study);
``(bb) the cost of attendance
for such award year (determined
for an institution based on the
cost of attendance for all
programs of study);
``(cc) the amount of grant
and scholarship aid received by
students for such award year
(determined for an institution
based on the amount of grant
and scholarship aid received by
students for all programs of
study);
``(dd) the information
described in item (cc) and
subclause (II)(cc),
disaggregated--
``(AA) by the type of
source described in
subparagraphs (A)
through (E) of
subsection (a)(4); and
``(BB) by whether
such aid is need-based,
merit-based, or
athletic-based, or is
another type of aid;
``(II) with respect to students who
completed a credential during the most
recent award year, the average, median,
minimum, and maximum values of--
``(aa) the program length
(determined for an institution
based on the program length for
all programs of study);
``(bb) the time to credential
(determined for an institution
based on the time to credential
for all programs of study);
``(cc) the amount of grant
and scholarship aid received
for the time to credential
(determined for an institution
based on the amount of grant
and scholarship aid received by
students for all programs of
study);
``(dd) the total net price
required for completion
(determined for an institution
based on the total net price
required for completion for all
programs of study); and
``(ee) the total net price
required for attendance
(determined for an institution
based on the total net price
required for attendance for all
programs of study);
``(III) the number and percentage of
students receiving any amount of grant
and scholarship aid for such award
year, and with respect to students who
completed a credential during the most
recent award year, the number and
percentage of such students receiving
any amount of grant and scholarship aid
for the time to credential;
``(IV) the average annual percentage
change and average annual dollar change
in the required costs for each of the
three most recent academic years for
which data are available; and
``(V) the average annual percentage
change and average annual dollar change
in the total and annual net price
required for completion for each of the
three most recent academic years for
which data are available.
``(vi) Information on student debt and
repayment, including--
``(I) the average, median, minimum,
and maximum amounts borrowed by
students under title IV;
``(II) information with respect to
repayment of loans made under title IV,
including borrower-based repayment
rates, dollar-based repayment rates,
and time spent in repayment; and
``(III) the number and percentage of
students who--
``(aa) are borrowers of a
loan made under title IV;
``(bb) are not borrowers of a
loan made under title IV, but
have at least one parent who is
a borrower of a loan made under
title IV on behalf of the
student; and
``(cc) are borrowers of a
loan made under title IV, and
have at least one parent who is
a borrower of a loan made under
title IV on behalf of the
student.
``(vii) Information on the earnings of
students, including the average, median,
minimum, and maximum values of--
``(I) with respect to students who
complete a program of study in the most
recent award year for which data are
available--
``(aa) the annual earnings of
such students; and
``(bb) the value-added
earnings (as defined in section
481(b)(3)(A)(iv)) of such
students; and
``(II) the annual earnings of
students who were enrolled in a program
of study at the institution during the
most recent award year for which data
are available, and who at the time the
information is reported--
``(aa) have not completed
such program of study; and
``(bb) are not enrolled at
the institution in any program
of study.
``(C) Programs of study.--With respect to each
program of study at each such institution, the
credential awarded for completion of the program of
study.
``(2) Disaggregated information.--The Secretary shall ensure
the information described in paragraph (1) is disaggregated, as
applicable, by the following student characteristics:
``(A) Financial circumstances including--
``(i) household income categories, as
determined by students' and families' adjusted
gross income; and
``(ii) student aid index categories, as
determined by the Secretary.
``(B) Sex.
``(C) Race and ethnicity.
``(D) Classification as a student with a disability.
``(E) Enrollment status, including part-time or full-
time enrollment, and status as a distance education
student.
``(F) Status as a first year, second year, third
year, or subsequent year student, based on the number
of years a student has been enrolled at the institution
or in the program of study, as applicable.
``(G) Status as an in-district, in-State, or out-of-
State student.
``(H) Status as an international student.
``(I) The type of Federal financial assistance
received, including--
``(i) a Pell Grant;
``(ii) a loan made under title IV; and
``(iii) assistance described in section
131(f)(4) administered, sponsored, or supported
by the Department of Defense or the Department
of Veterans Affairs.
``(J) Status as a participant in a program described
in section 116(b)(3)(A)(ii) of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3141(b)(3)(A)(ii)).
``(3) Comparisons; access; privacy.--The Secretary shall
ensure that the College Scorecard website--
``(A) includes a method for users to easily compare
institutions and programs, including in a manner that
allows for such comparison based on--
``(i) the institutional and program
information described in paragraph (1); and
``(ii) the student characteristics described
in paragraph (2);
``(B) provides access to information in an electronic
and downloadable format; and
``(C) complies with applicable Federal privacy
statutes and uses appropriate statistical disclosure
limitation techniques necessary to ensure that the data
released to the public cannot be used to identify
specific individuals, including with respect to
disaggregated information under paragraph (2).
``(4) Annual updates; adjustments.--
``(A) Annual data.--The Secretary shall annually
update the data on the College Scorecard website
required under this subsection.
``(B) Adjustments.--The Secretary may adjust the data
required under subclauses (IV) and (V) of paragraph
(1)(B)(v) using the Consumer Price Index if the
Secretary determines such adjustment is necessary.
``(5) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the Integrated
Postsecondary Education Data System (referred to in this
section as `IPEDS'), including the reporting of information by
institutions and the timeliness of the data collected.
``(c) Universal Net Price Calculator.--
``(1) Establishment.--Not later than 18 months after the
effective date of this subsection, the Secretary shall
establish, on a dedicated website of the Department, a
Universal Net Price Calculator that--
``(A) allows an individual to select one or more
institutions of higher education and one or more
programs of study offered by each selected institution
for which estimates shall be calculated;
``(B) makes available to the individual, with respect
to each selected institution and each selected program
of study, the individual's--
``(i) annual estimated net price required for
completion for each year of expected enrollment
based on the program length of a program of
study, based on the average annual net price
required for completion for similarly situated
students (based on the individual's information
described in subparagraph (C)(iv)) for such
institution or program for the most recent
award year, adjusted in accordance with clauses
(i) through (iii) of subparagraph (C);
``(ii) total estimated net price required for
completion equal to the sum of the annual
estimated net price required for completion for
each year described in clause (i);
``(iii) annual estimated net price of
attendance for each year of expected enrollment
based on the program length of a program of
study, based on the average annual net price of
attendance for similarly situated students
(based on the individual's information
described in subparagraph (C)(iv)) for such
institution or program for the most recent
award year, adjusted in accordance with clauses
(i) through (iii) of subparagraph (C); and
``(iv) total estimated net price of
attendance equal to the sum of the annual
estimated net price of attendance for each year
described in clause (iii);
``(C) with respect to calculating net price estimates
as required by subparagraph (B)--
``(i) determines an estimated annual
percentage change for each year for which a net
price calculation is made, based on the annual
percentage change in an institution's or
program's required costs and other costs under
section 472(a), as applicable, for the most
recent three-year period for which such data
are reported;
``(ii) provides the individual with the
option to replace the estimated annual
percentage change described in clause (i) with
an alternative annual percentage change
specified by the individual;
``(iii) in the case of an institution that
offers a multi-year tuition or net price
guarantee program, allow the individual to have
net price estimates calculated based on the
provisions of such guarantee program; and
``(iv) uses the individual's information,
based on--
``(I) the single set of questions
developed by the Secretary in
accordance with paragraph (2);
``(II) the student-level data
elements reported by institutions in
accordance with section 668.408 of
title 34, Code of Federal Regulations
(or successor regulations);
``(III) in the case of an individual
who submits a Free Application for
Federal Student Aid described in
section 483, the contents of such
application; and
``(IV) any additional information
provided by the individual with respect
to the individual's grant and
scholarship aid;
``(D) includes a method for users to easily compare
institutions and programs; and
``(E) provides access to information in an electronic
and downloadable format.
``(2) Development of input questions.--The Secretary shall
develop a single set of questions for purposes of capturing the
information specified in subsection (b)(2).
``(3) Updates.--
``(A) Data.--The Secretary shall update the data on
the Universal Net Price Calculator Website, as required
under this subsection, not less than annually.
``(B) Technology and format.--The Secretary shall
regularly assess the format and technology of the
Universal Net Price Calculator website and make any
changes or updates that the Secretary considers
appropriate.
``(4) Integration with other federal financial aid
resources.--In accordance with subsection (d)(5) of section
483, the Secretary shall ensure that a website link or other
means of accessing the Universal Net Price Calculator is
included on the FAFSA website (or similar successor website).
``(5) Interagency coordination.--The Secretary, in
consultation with each appropriate head of a department or
agency of the Federal Government, shall ensure, to the greatest
extent practicable, that any information related to higher
education that is published by such department or agency is
consistent with the information published on the Universal Net
Price Calculator website.
``(6) Consumer testing.--In developing and maintaining the
College Scorecard website and the Universal Net Price
Calculator website, the Secretary, in consultation with each
appropriate head of each appropriate department and agency of
the Federal Government shall--
``(A) not later than 6 months after the date of the
effective date of this subsection, and not less than
once every 4 years thereafter, conduct consumer testing
with appropriate persons, including current and
prospective college students, family members of such
students, institutions of higher education, and
experts, to--
``(i) improve the usefulness and relevance of
the College Scorecard website, with respect to
the presentation of the consumer information
collected pursuant to subsection (b); and
``(ii) ensure that the Universal Net Price
Calculator website is usable and easily
understandable and provides useful and relevant
information to students and families; and
``(B) display prominently on such websites in simple,
understandable, and unbiased terms for the most recent
academic year for which satisfactory data is available,
the categories of information described in paragraphs
(1) and (2) of subsection (b) and paragraph (1)(B) of
this subsection that were determined to be useful and
relevant to students and families based on the consumer
testing described in subparagraph (A).
``(7) Use of net price calculator by institutions.--Not later
than two years after the date on which the Secretary makes the
calculator developed under paragraph (1) available to
institutions of higher education, each institution of higher
education that receives Federal funds under title IV shall make
publicly available on the institution's website a net price
calculator to provide to current and prospective students,
families, and other consumers a student's individual net price
estimates at such institution of higher education. Such
calculator may be a net price calculator developed--
``(A) by the Department pursuant to paragraph (1); or
``(B) by the institution of higher education, if the
institution's calculator includes, at a minimum, the
same data elements included in the calculator developed
under paragraph (1).
``(8) Notice.--A net price estimate calculated for an
individual using the Universal Net Price Calculator under this
subsection shall be accompanied by a clear and conspicuous
notice--
``(A) stating that the estimate--
``(i) does not represent a final
determination, or actual award, of financial
assistance;
``(ii) shall not be binding on the Secretary,
an institution of higher education, or a State;
and
``(iii) may change;
``(B) stating that an individual must complete the
Free Application for Federal Student Aid described in
section 483 in order to be eligible for, and receive,
an actual financial aid award that includes Federal
grant, loan, or work-study assistance under title IV;
``(C) including a link to the website of the
Department that allows individuals to access the Free
Application for Federal Student Aid described in
section 483; and
``(D) explaining that the net price estimate
calculated for an individual using the Universal Net
Price Calculator under this subsection may differ from
the net price calculated for such individual using an
institution's net price calculator due to differences
in data or methodology.''.
(b) Conforming Amendment.--Section 132 of the Higher Education Act of
1965 (20 U.S.C. 1015a) is further amended by redesignating subsections
(k) and (l) as subsections (d) and (e), respectively.
SEC. 3. OTHER AMENDMENTS.
(a) Cost of Attendance of a Program of Study.--
(1) Determination of cost of attendance of a program of
study.--
(A) In general.--Section 472(a) of the Higher
Education Act of 1965 (20 U.S.C. 1087ll(a)) is
amended--
(i) 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'';
(ii) in paragraph (2), by striking ``same
course of study'' and inserting ``same program
of study''; and
(iii) in paragraph (14), by striking
``program'' and inserting ``program of study''.
(2) Disclosure.--Section 472(c) of the Higher Education Act
of 1965 (20 U.S.C. 1087ll(c)) is amended--
(A) by inserting ``of each program of study at the
institution'' after ``cost of attendance''; and
(B) by striking ``of the institution'' and inserting
``of such programs of study at the institution''.
(b) Program of Study Defined.--Section 103 of the Higher Education
Act of 1965 (20 U.S.C. 1003) is amended--
(1) by redesignating paragraphs (15) through (24) as
paragraphs (16) through (25), respectively; and
(2) by inserting after paragraph (14) the following new
paragraph:
``(15) Program of study defined.--
``(A) In general.--The 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 code.--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.
``(C) Credential level.--
``(i) In general.--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.
``(ii) Undergraduate credential.--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)).
``(iii) Graduate credential.--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.''.
(c) Elimination of Early Estimator Tool.--Paragraph (4) of section
485E(b) of the Higher Education Act of 1965 (20 U.S.C. 1092f(b)) is
repealed.
(d) Conforming Amendments.--
(1) Higher education act of 1965.--The Higher Education Act
of 1965 (20 U.S.C. 1001 et seq.), as amended by this Act, is
further amended--
(A) by striking ``College Navigator'' each place it
appears and inserting ``College Scorecard''; and
(B) in the header of section 487(d)(3), by striking
``college navigator'' and inserting ``college
scorecard''.
(2) Other references.--Any reference in any law (other than
the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)),
regulation, document, record, or other paper of the United
States to the College Navigator website shall be considered to
be a reference to the College Scorecard website.
SEC. 4. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
July 1, 2027, and shall apply with respect to award year 2027-2028 and
each subsequent award year, as determined under the Higher Education
Act of 1965.
Purpose
H.R. 6498, the Student Financial Clarity Act, amends the
Higher Education Act of 1965 (HEA) to strengthen transparency
and consumer access to information on college costs, financial
aid, debt, and outcomes by codifying and expanding the College
Scorecard (Scorecard). Specifically, the bill would update and
make publicly available institutional and program-level
consumer information on the Scorecard, using data from the most
recent award year and limited to students who received federal
financial assistance. This data would include information such
as required costs, grants and scholarships, student debt and
repayment, completion rates, and post-enrollment earnings. The
bill also requires data to be disaggregated by student
characteristics and by average, median, minimum, and maximum
values to improve comparability, while still complying with
federal privacy laws. Finally, the bill establishes a Universal
Net Price Calculator that allows students to receive multi-year
cost estimates using student-specific information and past data
from previously graduated students of the same institution.
Committee Action
113TH CONGRESS
First Session--Hearings
On April 24, 2013, the Subcommittee on Higher Education and
Workforce Training held a hearing on ``Keeping College Within
Reach: Enhancing Transparency for Students, Families, and
Taxpayers.'' The hearing examined efforts to improve higher
education transparency, including tools like the College
Navigator and College Scorecard, and challenges students face
in navigating postsecondary options. Testifying before the
Subcommittee were Dr. Donald Heller, Dean, College of
Education, Michigan State University, East Lansing, MI; Mr.
Alex Garrido, Student, Keiser University, Miami, FL; Dr. Nicole
Farmer Hurd, Founder and Executive Director, National College
Advising Corps, Carrboro, NC; and Mr. Travis Reindl, Program
Director, Postsecondary Education, National Governors
Association Center for Best Practices, Washington, D.C.
On November 13, 2013, the Committee on Education and the
Workforce held a hearing on ``Keeping College Within Reach:
Simplifying Federal Student Aid.'' The purpose of the hearing
was to examine the need to streamline, consolidate, and
simplify federal student aid programs. Testifying before the
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research
Professor of Education Policy, George Washington University
Graduate School of Education and Human Development, and Senior
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer
Mishory, J.D., Deputy Director, Young Invincibles, Washington,
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget
Project, New America Foundation, Washington, D.C.
118TH CONGRESS
Second Session--Hearings
On April 10, 2024, the Subcommittee on Higher Education and
Workforce Development held a hearing on ``FAFSA Fail: Examining
the Impact on Students, Families, and Schools.'' The purpose of
the hearing was to assess the causes and impacts of the failed
FAFSA rollout, including the effects of delays and data
inaccuracies on students and postsecondary institutions.
Testifying before the Subcommittee were Mr. Mark Kantrowitz,
President, Cerebly, Inc, York, Skokie, IL; Dr. Justin Draeger,
President & CEO, National Association of Student Financial Aid
Administrators, Washington, D.C.; Ms. Kim Cook, CEO, National
College Attainment Network, Washington, D.C.; and Ms. Rachelle
Feldman, Vice Provost, Enrollment, University of North Carolina
Chapel Hill, Chapel Hill, NC.
On September 24, 2024, the Subcommittee on Higher Education
and Workforce Development held a hearing on ``GAO Uncovers
Biden-Harris FAFSA Failures.'' The purpose of the hearing was
to review data and findings from the Government Accountability
Office (GAO) on the Department of Education's implementation of
the new FAFSA, with a focus on timelines, technical challenges,
and transparency and communication with students, institutions,
and taxpayers. Testifying before the Subcommittee were Ms.
Melissa Emrey-Arras, Director, Education, Workforce, and Income
Security Issues, GAO, Washington, D.C.; and Mrs. Marisol Cruz
Cain, Director, Information Technology and Cybersecurity Team,
GAO, Washington D.C.
Legislative Action
On January 11, 2024, then-Chairwoman Virginia Foxx
introduced H.R. 6951, the College Cost Reduction Act, with
original co-sponsors Representatives Burgess Owens (R-UT),
Glenn Grothman (R-WI), Rick W. Allen (R-GA), Lloyd Smucker (R-
PA), Lisa McClain (R-MI), Michelle Steel (R-CA), and Brandon
Williams (R-NY). On January 31, 2024, the Committee considered
H.R. 6951 in a legislative session and reported it favorably,
as amended, to the House of Representatives by a recorded vote
of 22-19. The Committee considered the following amendments to
H.R. 6951:
1. Representative Owens offered an Amendment in the
Nature of a Substitute that made technical changes to
the text. The amendment was adopted by voice vote.
2. Representative Jahana Hayes (D-CT) offered an
amendment to increase the total maximum Pell Grant
amount awarded during the 2025-2026 award year from
$7,395 to $10,000 and increase it incrementally
thereafter. The amendment was included in amendment En
Bloc #1, which failed by a roll call vote of 17-22.
3. Representative Hayes offered an amendment to
strike the bill's accreditation provisions. The
amendment was included in amendment En Bloc #2, which
failed by a roll call vote of 18-22.
4. Representative Hayes offered an amendment to
provide federal student loan forgiveness for teachers.
The amendment was included in amendment En Bloc #3,
which failed by a roll call vote of 18-22.
5. Representative Haley Stevens (D-MI) offered an
amendment to make post baccalaureate students eligible
to receive a Pell Grant. The amendment was included in
amendment En Bloc #1, which failed by a roll call vote
of 17-22.
6. Representative Mark DeSaulnier (D-CA) offered an
amendment to increase the total number of semesters a
student can be eligible for Pell Grants from 12 to 18.
The amendment was included in amendment En Bloc #1,
which failed by a roll call vote of 17-22.
7. Representative Joe Courtney (D-CT) offered an
amendment to expand the Public Service Loan Forgiveness
program. The amendment was included in amendment En
Bloc #1, which failed by a roll call vote of 17-22.
8. Representative Frederica Wilson (D-FL) offered an
amendment to allow graduate or professional students to
be eligible to receive a federal Direct Stafford Loan,
excluding graduate medical school, nursing school,
veterinary school, or a school located outside the U.S.
The amendment was included in amendment En Bloc #1,
which failed by a roll call vote of 17-22.
8. Representative Stevens offered an amendment to
stipulate that nothing under the bill can be construed
to prevent graduate students from exercising collective
bargaining rights under the National Labor Relations
Act. The amendment was included in amendment En Bloc
#2, which failed by a roll call vote of 18-22.
9. Representative Wilson offered an amendment to
strike a provision to repeal regulations related to
financial value transparency and gainful employment and
stipulate that the Department of Education (Department)
would not be permitted to promulgate or enforce any
regulation or rules related to the application of the
term ``gainful employment.'' The amendment was included
in amendment En Bloc #4, which failed by a roll call
vote of 19-22.
10. Ranking Member Bobby Scott (D-VA) offered an
amendment to establish an interest rate equal to the
high yield of the 10-year Treasury note auctioned at
the final auction prior to June 1, 2025, or 5 percent
for new federal Direct Unsubsidized Stafford loans,
federal Direct Stafford loans, and federal Direct PLUS
loans issued on or after July 1, 2025. The amendment
also established a new rate for any federal Direct
Consolidation Loan. The amendment also authorized the
Department to establish programs to refinance federal
Direct Loans and eligible private education loans. The
amendment also established guidelines for determining
the interest rate for refinanced loans through both
programs, which would have been fixed. The amendment
failed by a roll call vote of 19-22.
11. Representative Teresa Leger Fernandez (D-NM)
offered an amendment to direct the Department, in
consultation with the Consumer Financial Protection
Bureau, Financial Literacy and Education Commission,
and Internal Revenue Service (IRS), to establish a
personal finance education portal on a centralized and
publicly available Department website for federal
financial aid. Representative Leger Fernandez
subsequently withdrew the amendment.
12. Representative Leger Fernandez offered an
amendment to authorize the Department to award grants
for tuition-free community college to eligible states
and tribal colleges and universities. The amendment was
included in amendment En Bloc #5, which failed by a
roll call vote of 19-22.
13. Representative Mark Takano (D-CA) offered an
amendment to strike a provision to repeal the 90/10
regulation that caps the percentage of revenue that a
for-profit school can receive from federal financial
aid sources at 90 percent and stipulate that the other
10 percent of revenue must come from alternative
sources. The amendment failed by a roll call vote of
19-22.
14. Representative Takano offered an amendment to add
language to stipulate that the bill's provisions would
not take effect until the inspectors general of the
Departments of Education and Veterans Affairs submit a
report to Congress certifying that the bill would not
result in fraud or abuse of veteran students. The
amendment was included in amendment En Bloc #4, which
failed by a roll call vote of 19-22.
15. Representative Alma Adams (D-NC) offered an
amendment to stipulate that no claim from a federal
student loan could be collected by administrative
offset for any payments related to Social Security. It
applied to any payments made after the bill's
enactment. The amendment failed by a roll call vote of
19-22.
16. Representative Adams offered an amendment to
require the Department, a guaranty agency, or an
eligible loan holder to remove any adverse item of
information related to a loan from a borrower's credit
history upon the sale or assignment of a loan after the
loan is reported as being in default. The amendment was
included in amendment En Bloc #3, which failed by a
roll call vote of 18-22.
17. Delegate Gregorio Sablan (D-MP) offered an
amendment to establish a program to enable college-
bound residents of the Northern Mariana Islands and
American Samoa to have additional choices to attend
higher education institutions. The amendment was
included in amendment En Bloc #5, which failed by a
roll call vote of 19-22.
18. Representative Lucy McBath (D-GA) offered an
amendment to strike a provision to repeal current
regulations related to closed school loan discharges.
The amendment was included in amendment En Bloc #4,
which failed by a roll call vote of 19-22.
19. Representative Suzanne Bonamici (D-OR) offered an
amendment to add language to require colleges and
universities to accept Individualized Education
Programs under the Individuals with Disabilities
Education Act, or plans describing services or
accommodations provided to an individual with a
disability pursuant to Section 504 of the
Rehabilitation Act of 1973, as proper documentation for
disability accommodations. The amendment failed by a
roll call vote of 19-21.
20. Representative Pramila Jayapal (D-WA) offered an
amendment to strike a provision that would repeal
regulations related to borrower repayment defense. The
amendment was included in amendment En Bloc #4, which
failed by a roll call vote of 19-22.
21. Representative Jayapal offered an amendment to
require the postsecondary student data system to
include data on applications received, students
accepted, and students placed on the wait list
disaggregated by race and ethnic subgroup at each
institution of higher education (IHE). The amendment
was included in amendment En Bloc #5, which failed by a
roll call vote of 19-22.
22. Representative Jayapal offered an amendment to
require the Department to adjust the median cost of
college for a program of study for institutions located
in a metropolitan area to account for the higher cost
of living. The amendment was included in amendment En
Bloc #3, which failed by a roll call vote of 18-22.
23. Representative Ilhan Omar (D-MN) offered an
amendment to strike a provision that stipulated that
the Department could not issue a proposed rule, final
regulation, or exhaustive action to carry out the
bill's provisions if it is determined that it would be
economically significant or result in a subsidy cost
increase. The amendment was included in amendment En
Bloc #3, which failed by a roll call vote of 18-22.
24. Representative Omar offered an amendment to
authorize a program for the Department to provide
grants for a period of 5 years to eligible IHEs to
provide childcare services for student parents. The
amendment failed by a roll call vote of 19-22.
25. Representative Omar offered an amendment to
strike a provision that established annual limits on
federal Direct Unsubsidized Stafford Loans, for any
period of instruction beginning on or after July 1,
2025, which would not exceed the cost of attendance for
an academic year. The amendment also struck the
establishment of maximum aggregate student loan amounts
professional, graduate, and undergraduate students
could receive through such loans. The amendment was
included in amendment En Bloc #3, which failed by a
roll call vote of 18-22.
26. Representative Omar offered an amendment to
strike a provision that established two
repayment plans for federal loans made on or after
July 1, 2024, including a standard repayment plan with
a fixed monthly repayment amount paid over a fixed
period that does not exceed 10 years and a standard
repayment assistance plan under the income-driven
repayment program. The amendment was included in
amendment En Bloc #3, which failed by a roll call vote
of 18-22.
27. Representative Jamaal Bowman (D-NY) offered an
amendment to stipulate that nothing in the bill could
be construed to require any accreditation agency or
association to promulgate a standard that would
prohibit IHEs from offering programs of study in any
academic subject. The amendment was included in
amendment En Bloc #2, which failed by a roll call vote
of 18-22.
28. Representative Bowman offered an amendment to
prohibit IHEs from providing preferential treatment in
the admissions process for donors and alumni, effective
on the first day of the second award year after the
bill's enactment. The amendment was included in
amendment En Bloc #2, which failed by a roll call vote
of 18-22.
29. Representative Kathy Manning (D-NC) offered an
amendment to strike the amended definition of ``third-
party server,'' which referred to any individual,
state, or private for-profit or nonprofit organization
that enters into a contract with an IHE to administer
any student assistance programs under the bill. The
amendment was included in amendment En Bloc #4, which
failed by a roll call vote of 19-22.
30. Representative Manning offered an amendment to
stipulate that nothing in the bill could be construed
to prevent an IHE from providing medically accurate and
comprehensive information about sexual and reproductive
health services, including contraception. The amendment
failed by a roll call vote of 20-21.
31. Ranking Member Scott offered an amendment to
strike a provision to prohibit the Department from
implementing any substantially similar rule,
regulation, policy or executive action related to
regulations repealed under the bill, including closed
school loan discharges, borrower repayment defense,
pre-dispute arbitration, false certification,
administrative capability, certification procedures,
ability to benefit, and personal liability. The
amendment was included in amendment En Bloc #4, which
failed by a roll call vote of 19-22.
119TH CONGRESS
First Session--Hearings
On September 16, 2025, the Committee's Higher Education and
Workforce Development Subcommittee held a hearing on ``No More
Surprises: Reforming College Pricing for Students and
Families.'' The purpose of the hearing was to examine ways to
make college costs more transparent. Testifying before the
Subcommittee were Mr. Justin Draeger, Senior Vice President,
Affordability, Strada Education Foundation, Washington, D.C.;
Mr. Lee Wishing III, Vice President for Student Recruitment and
Chief Marketing Officer, Grove City College, Grove City, PA;
Ms. Amy Laitinen, Senior Director of Higher Education, New
America, Washington, D.C.; and Dr. Andrew Gillen, Research
Fellow, Cato Institute, Washington, D.C.
Legislative Action
On December 9, 2025, Representative Brett Guthrie (R-KY)
introduced the Student Financial Aid Clarity Act of 2025 (H.R.
6498). The bill was referred solely to the Committee on
Education and Workforce. On December 11, 2025, the Committee
considered H.R. 6498 in legislative session and reported it
favorably, as amended, to the House of Representatives by a
recorded vote of 27-6.\1\ The Committee considered the
following amendments to H.R. 6498:
---------------------------------------------------------------------------
\1\https://www.congress.gov/bill/119th-congress/house-bill/6498/
all-actions.
---------------------------------------------------------------------------
1. Representative Bob Onder (R-MO) offered an
Amendment in the Nature of a Substitute that clarified
privacy protections for student data, including clearer
language around data collected through college entrance
exams. It also standardized how institutions calculate
and present costs, program length, time to credential,
and grant and scholarship aid across an award year,
while making technical updates for clarity and
consistency. The amendment passed by voice vote.
2. Representative Takano offered an amendment to
codify the Biden administration's Gainful Employment
regulation and financial value transparency regulations
for for-profit colleges. The amendment failed by a roll
call vote of 14-19.
3. Representative Bonamici offered an amendment to
prohibit the Secretary of Education from entering into
additional Interagency Agreements. The amendment failed
by a roll call vote of 14-19.
4. Representative Adams offered an amendment that
clarified that an individual's net price estimate may
vary between the Universal Net Price Calculator and an
institution's calculator due to differences in
underlying data and methodologies. The amendment passed
by voice vote.
5. Representative Wilson offered an amendment to
prohibit the Secretary of Education from enacting
additional Interagency Agreements. The amendment failed
by a roll call vote of 14-19.
6. Ranking Member Scott offered an amendment to
require additional funding to implement the provisions
of the bill. The amendment failed a roll call vote of
14-19.
7. Ranking Member Scott offered an amendment to
require a comparison of the amount of federal financial
aid a student would have received prior to enactment of
Public Law 119-21 with the amount of federal financial
aid currently available to that student. The amendment
failed by voice vote.
Committee Views
INTRODUCTION
H.R. 6498, the Student Financial Clarity Act, makes
improvements to the College Scorecard to provide more
information about college costs and student outcomes. It also
improves the universal net price calculator tool to allow
students to review an institution's required costs and other
cost of attendance data to determine their expected cost over
the length of their program.
BENEFITS OF PRICE TRANSPARENCY
In traditional economic models, firms operate in
competitive markets with a clear, simple goal of maximizing
profits. Businesses sell standardized products, compete with
many other similar firms, accept whatever price the market
dictates, and ensure that price is transparent. These firms
make decisions based on costs and revenues, and if they cannot
make a profit, they exit the market. Over time, competition
drives prices down to the cost of production, ensuring all
consumers get the lowest possible price. Economists generally
believe that more information increases market efficiency if
buyers and sellers make their transaction based on equal
knowledge. Economist George A. Akerlof's paper on ``lemons'' in
the used car business showed that a lack of information created
uncertainty about quality in the market, which resulted in
buyers thinking all used cars are lemons and not buying even
high-quality used cars.\2\ Congress took action on car sales
when the Automobile Information Disclosure Act of 1958 was
passed, creating what is now known as the ``Monroney
sticker.''\3\ This tag includes consumer information like the
manufacturer's suggested retail price, accessories, gas
mileage, safety rating, delivery fees, and more.\4\
---------------------------------------------------------------------------
\2\https://www.jstor.org/stable/1879431.
\3\https://uscode.house.gov/view.xhtml?path=/prelim@title15/
chapter28&edition=prelim.
\4\https://www.caranddriver.com/research/a31482404/monroney-
sticker/.
---------------------------------------------------------------------------
CURRENT CONSUMER INFORMATION
While postsecondary education does not have a ``Monroney
sticker,'' there are some existing tools designed to help
students be informed consumers about the cost of college.
Statutory Requirements
Under section 485 of the HEA, IHEs that participate in
federal student aid programs are required to disclose specific
institutional and financial assistance information to students
and prospective students.\5\ Institutions must disclose the
types of financial aid available, the methods and requirements
for applying, and the rights and responsibilities of students
receiving aid.\6\ They must provide an accurate description of
the cost of attendance, including tuition and fees, books and
supplies, estimates of room and board or commuting costs, and
any additional program-specific expenses.\7\
---------------------------------------------------------------------------
\5\https://www.law.cornell.edu/uscode/text/20/1092.
\6\https://www.law.cornell.edu/uscode/text/20/1092.
\7\https://www.law.cornell.edu/uscode/text/20/1092.
---------------------------------------------------------------------------
Section 472 of the HEA requires cost of attendance to
reflect both direct costs, such as charges billed by the
institution, and indirect costs, such as transportation and
personal expenses.\8\
---------------------------------------------------------------------------
\8\https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-
title20-section1087ll&num=
0&edition=prelim.
---------------------------------------------------------------------------
Section 132 of the HEA requires institutions to provide a
net price calculator on their websites.\9\ Institutions may use
a calculator developed by the Department or may customize and
build their own based on a list of requirements. Net price
calculators use institutional data to give current and
prospective students and their families an estimate of the net
price of attendance, defined as the cost of attendance minus
grant and scholarship aid, based on individual circumstances
and historical data from similar students.\10\ The calculator
must reflect the school's actual tuition, fees, room and board,
and average financial aid awarded, rather than national
averages.\11\ Schools must ensure that all required input and
output elements are included and that the tool is easy to find,
user-friendly, and fully functional on their website. They are
also responsible for including appropriate disclaimers
indicating that the estimates are approximations and may vary
based on individual circumstances.\12\
---------------------------------------------------------------------------
\9\https://nces.ed.gov/ipeds/report-your-data/resource-center-net-
price.
\10\https://studentaid.gov/help-center/answers/article/what-does-
net-price-mean-for-college-costs.
\11\https://nces.ed.gov/ipeds/netpricecalculator/wwwroot/documents/
NetPriceCalculator_
QuickStartGuide.pdf.
\12\https://nces.ed.gov/ipeds/netpricecalculator/wwwroot/documents/
NetPriceCalculator_
QuickStartGuide.pdf.
---------------------------------------------------------------------------
Financial Value Transparency
In October 2023, the Biden administration released new
regulations known as Financial Value Transparency.\13\ These
regulatory requirements apply to all programs receiving federal
student aid. These regulations establish two measures: the
debt-to-earnings measure and the earnings premium measure. The
regulations also establish performance benchmarks for each
measure to determine whether the program may have adverse
financial consequences for students. The regulations require
institutions to annually report two types of data to the
Department: program-specific information and student-specific
information. Institutions must provide this information for
each eligible program if they have any program with a total of
at least 30 completers over the four most recently completed
award years within any group of substantially similar programs.
``Substantially similar'' is defined as all programs in the
same four-digit Classification of Instructional Programs code
at an institution.\14\
---------------------------------------------------------------------------
\13\https://www.federalregister.gov/documents/2023/10/10/2023-
20385/financial-value-
transparency-and-gainful-employment.
\14\https://fsapartners.ed.gov/knowledge-center/library/dear-
colleague-letters/2024-03-29/
regulatory-requirements-financial-value-transparency-and-gainful-
employment-updated-sept-16-2024.
---------------------------------------------------------------------------
Program level reporting includes, among other things,
program length, credential level, and number of students.
Student level reporting includes date enrolled, cost of
attendance (split by such things as housing, food, books, and
supplies), tuition and fees, institutional aid, other non-
federal aid, and private loans.\15\
---------------------------------------------------------------------------
\15\https://fsapartners.ed.gov/knowledge-center/library/electronic-
announcements/2024-04-12/nslds-professional-access-nslds-financial-
value-transparency-and-gainful-employment-reports-
updated-dec-13-2024.
---------------------------------------------------------------------------
The Department will use administrative data from the
National Student Loan Data System (NSLDS) to compile a draft
list of completers to use for creating the cohorts for
obtaining earnings data and identify completers. The list will
be provided to institutions, which can issue corrections to
their data in NSLDS, before the Department submits the
information to a federal agency that holds earnings data
(currently the IRS). Once the Department has received median
annual earnings data for programs, those amounts will be used
in calculating debt-to-earnings rates and the earnings premium
measure.
Institutions pushed back heavily on these requirements and
also indicated many inaccuracies in early forms of the
completer lists. This pushback and issues with the FAFSA
rollout and completer lists delayed reporting until October 1,
2025.\16\ The original timeline was July 2024.\17\
---------------------------------------------------------------------------
\16\https://fsapartners.ed.gov/knowledge-center/library/electronic-
announcements/2025-07-09/
reminder-fvt-ge-required-reporting-2025-cycle.
\17\https://www.highereddive.com/news/gainful-employment-financial-
value-transparency-
reporting-delay/740685/.
---------------------------------------------------------------------------
The Trump administration has indicated it will maintain
this regulation in some form.\18\ In May 2025 the
administration chose to file a brief to defend this regulation
from a Biden-era lawsuit brought by cosmetology schools.\19\
Additionally, Preston Cooper from the American Enterprise
Institute supported this regulation because of the goal of
price transparency, saying it was the one Biden administration
education policy the Trump administration should keep.\20\
---------------------------------------------------------------------------
\18\https://www.thompsoncoburn.com/insights/trumps-education-
department-shocks-with-
support-of-bidens-financial-value-transparency-and-gainful-employment-
rule/.
\19\https://www.insidehighered.com/news/quick-takes/2025/05/19/
education-dept-urges-judge-
uphold-gainful-employment-rule.
\20\https://www.aei.org/education/the-one-biden-education-policy-
trump-should-keep/.
---------------------------------------------------------------------------
College Scorecard
The College Scorecard (Scorecard) was a tool announced by
President Obama in 2013.\21\ The goal was to provide indicators
and data on colleges such as graduation rates, employment
earnings, and debt. The tool was launched in 2015.\22\
Functionally, the Scorecard collects data reported by
institutions, data on federal financial aid, and tax
information.\23\ This information applies only to students who
received federal grants and loans and must comply with federal
privacy laws.\24\
---------------------------------------------------------------------------
\21\https://obamawhitehouse.archives.gov/blog/2013/02/13/obama-
administration-launches-
college-scorecard.
\22\https://obamawhitehouse.archives.gov/the-press-office/2015/09/
12/weekly-address-new-
college-scorecard.
\23\https://collegescorecard.ed.gov/assets/
InstitutionDataDocumentation.pdf.
\24\https://collegescorecard.ed.gov/assets/
InstitutionDataDocumentation.pdf.
---------------------------------------------------------------------------
Presidential administrations across both parties have
continued to update and maintain the Scorecard. In 2017, the
first Trump administration allowed students to compare data
from multiple institutions.\25\ Later in 2019, the Scorecard
was updated with data based on individual programs of
study.\26\ The Biden administration also made changes to the
Scorecard to include updated demographic data, graduate data,
and better earnings measurements.\27\
---------------------------------------------------------------------------
\25\https://www.insidehighered.com/news/2017/09/29/education-dept-
updates-higher-ed-
consumer-tool-adds-new-comparison-feature.
\26\https://www.insidehighered.com/news/2019/05/22/trump-
administration-releases-new-
program-level-loan-data.
\27\https://www.thirdway.org/blog/new-wins-for-the-college-
scorecard.
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PROBLEMS WITH COLLEGE PRICING
Warped Economic Model
Despite these statutory requirements and gradual consumer
tool improvements, college pricing remains opaque and
confusing. One difficulty is that the product--a college
diploma--is what is known by economists as an ``experience
good.'' Unlike a cell phone or a home, the quality of an
experience good cannot be determined by buyers prior to its
purchase. Indeed, evaluating whether investing in college is
financially ``worth it'' is only possible after a family has
paid their final tuition bill. A model explaining the prices of
products sold at your local supermarket cannot determine the
market for postsecondary education.\28\
---------------------------------------------------------------------------
\28\https://aaronhedlund.github.io/research/hetero.pdf.
---------------------------------------------------------------------------
Additionally, the vast majority of institutions are
nonprofits and thus, by definition, do not operate under the
profit-maximization imperative of traditional firms. Instead,
colleges seek to enhance their institutional reputation and
prestige (e.g., improved college rankings, championship
athletics, esteemed faculty, highly rated students) and, in the
absence of the need to minimize cost, virtually no limit to the
amount an institution will spend in pursuit of this goal
exists.
The market for higher education also differs from the
normal economic model in that it is heavily subsidized by the
public. Through a combination of grants, loans, state
appropriations, and private sources, annual support for
postsecondary education easily surpasses a quarter of a
trillion dollars.\29\ Taken together, these unique factors have
significant implications for the prices students and families
face in the higher education market.
---------------------------------------------------------------------------
\29\https://www.hanoverresearch.com/reports-and-briefs/higher-
education/2025-trends-in-higher-education/
?tm=tt&ap=gads&aaid=adaFTiRMzQBWb&kw=&cpn=20970493114&utm
_term=&utm_campaign=he-general&utm_source=google&utm_medium=paid-
search&hsa_
acc=3558395466&hsa_cam=20970493114&hsa_grp=&hsa_ad=&hsa_src=x&hsa_tgt=&h
sa_kw=
&hsa_mt=&hsa_net=adwords&hsa_ver=3&gad_source=1&gad_campaignid=209607
77277&gbraid=0AAAAADJwHY51Kz3A5eoc1QPOvkMozSak&gclid=CjwKCAjwiY_GBhBEEiw
AFaghvsGwhxPVb_
8pXYyyIKtICj4sckBriDUpXdZYlKSPtSIndQBIHbcSsBoC71wQAvD_BwE.
---------------------------------------------------------------------------
Price Confusion
Colleges provide students a variety of prices that can
cause students to overestimate or underestimate what attending
will truly cost. Colleges will publish a ``sticker price'' but
then use a practice known as ``tuition discounting'' to then
charge a lower price to some students. This creates a lower
``net price'' after the discount but a more complicated path
for students to determine what they truly will pay.\30\ The
high sticker price creates a perception of high worth, and a
simultaneously high ``scholarship'' gives the perception of
value.\31\ Tuition discounting is widespread, with over 55
percent of private nonprofit colleges engaging in the
practice.\32\ Upcoming research from Higher Ed Insight also
shows that public four-year institutions are increasingly
adopting this tuition discount model.\33\ This also allows
institutions to use tuition discounting games to deceptively
charge students different amounts. As Dr. Lee Wishing,
President of Grove City College, testified in front of this
committee:
---------------------------------------------------------------------------
\30\https://bigfuture.collegeboard.org/pay-for-college/get-started/
focus-on-net-price-not-sticker-price.
\31\https://www.highereddive.com/news/college-tuition-sticker-
price-discounting-revenue/
721847/.
\32\https://www.highereddive.com/news/tuition-discounts-private-
colleges-nacubo/716115/.
\33\https://edworkforce.house.gov/uploadedfiles/
justin_draeger_testimony_final.pdf.
---------------------------------------------------------------------------
``A university sets its tuition at a sticker price of
$65,000, but its actual cost to educate a student is only
$35,000. Therefore, it can give every student a $30,000
scholarship without losing any money. Everyone is a winner! But
what happens to the student who receives a smaller $20,000
scholarship? That student will pay $45,000, which is $10,000
more than the school's breakeven cost . . . . the scheme seeks
to make the subsidizers feel good about their unwitting
overpayment. The goal: Nearly every student gets a trophy and
feels happy.''\34\
---------------------------------------------------------------------------
\34\https://edworkforce.house.gov/uploadedfiles/
lee_wishing_testimony_final.pdf.
---------------------------------------------------------------------------
The high sticker prices and confusing discounting math can
result in students overestimating college prices. Research by
the Strada Foundation found that only 25 percent of adults
could correctly identify average tuition and fees at a
community college, and 56 percent of adults overestimated the
costs at four-year in-state public institutions.\35\ This
overestimation can result in low-income students not even
applying at all.\36\
---------------------------------------------------------------------------
\35\https://edworkforce.house.gov/uploadedfiles/
justin_draeger_testimony_final.pdf.
\36\https://direct.mit.edu/edfp/article/18/3/365/109282/Do-College-
Applicants-Respond-to-Changes-in.
---------------------------------------------------------------------------
On the other hand, underestimating college costs can also
provide serious negative effects for students. A 2022 report
from GAO found that 91 percent of colleges failed to follow
best pricing practices in their financial aid offers to
students.\37\ Forty-one percent of colleges did not estimate
the net price, and 50 percent of colleges understated the net
price by excluding key costs and/or factoring in loans.\38\
Some colleges included loans as ``student aid,'' potentially
confusing students into thinking loans were grants that would
not have to be repaid.\39\
---------------------------------------------------------------------------
\37\https://www.gao.gov/products/gao-23-104708.
\38\https://www.gao.gov/products/gao-23-104708.
\39\https://www.gao.gov/blog/what-financial-aid-offers-dont-tell-
you-about-cost-college.
---------------------------------------------------------------------------
Encouragingly, a coalition of national higher education
associations launched the College Cost Transparency Initiative
(CCTI) as a voluntary effort to improve the clarity and
consistency of college financial aid offers.\40\ Institutions
participating in the CCTI commit to a set of Principles and
Standards that promote transparency and accuracy in
communicating college costs and aid options.\41\ Although the
CCTI is a great first step for institutions, participation in
the CCTI is voluntary, with over half of all institutions not
yet joining.\42\
---------------------------------------------------------------------------
\40\https://www.collegeprice.org/about.
\41\https://www.collegeprice.org/standards.
\42\https://www.collegeprice.org/partner_institutions.
---------------------------------------------------------------------------
Students can also encounter unexpected costs if colleges
present confusing calculations about cost of attendance
categories. According to the 2025 2026 Federal Student Aid
Handbook, each school is responsible for determining the
``appropriate and reasonable amounts'' to include for each cost
of attendance category such as housing, transportation, or
food.\43\ Cost of attendance numbers are ``the cornerstone of
establishing a student's financial need'' because they factor
into a student's financial aid package and how a student
anticipates their costs.\44\ Unfortunately, improper
calculations or presentations can be confusing to students if
schools' numbers are not aligned with reality or schools
include costs that are not relevant to students. Colleges can
sometimes use outdated data for calculations, resulting in
fluctuating costs for students.\45\ For example, multiple
schools in the same New York City geographic area offered very
different housing calculations to students, ranging from
$21,000 to $4,000.\46\
---------------------------------------------------------------------------
\43\https://fsapartners.ed.gov/knowledge-center/fsa-handbook/2025
2026.
\44\https://fsapartners.ed.gov/knowledge-center/fsa-handbook/2025
2026.
\45\https://hope.temple.edu/sites/hope/files/media/document/
CostOfAttendance_2024.pdf.
\46\https://www.cato.org/commentary/median-cost-attendance-great-
idea#.
---------------------------------------------------------------------------
College costs, particularly unexpected increases in costs,
can prevent many students from graduating. A 2025 Gallup-Lumina
poll found that 31 percent of currently enrolled students have
considered leaving due to college costs.\47\ Eighty-five
percent of adults who either never enrolled or left college
pointed to cost as the reason.\48\
---------------------------------------------------------------------------
\47\https://www.nasfaa.org/news-item/34147/
Report_The_Biggest_Barriers_to_Higher_Ed_
Enrollment_Are_Cost_and_Lack_of_Financial_Aid.
\48\https://www.nasfaa.org/news-item/34147/
Report_The_Biggest_Barriers_to_Higher_Ed_
Enrollment_Are_Cost_and_Lack_of_Financial_Aid.
---------------------------------------------------------------------------
Leaving postsecondary education without graduating causes
what is known as ``some college no credential'' (SCNC). A 2025
report from the National Student Clearinghouse Research Center
found that the SCNC population increased by over 2 million
students between the 2022-2023 and 2023-2024 academic
years.\49\ There are now an estimated 43 million students in
the SCNC population.\50\ SCNC is not ideal for the student; it
means that the student spent some amount of time and money but
has nothing tangible in the form of a credential to showcase
any skills gained. A 2024 Pew Research Study found that nearly
60 percent of SCNC students who borrowed loans ended up
defaulting on those loans.\51\
---------------------------------------------------------------------------
\49\https://www.insidehighered.com/news/students/retention/2025/06/
04/21m-students-left-higher-ed-without-degree-last-year.
\50\https://nscresearchcenter.org/some-college-no-credential/.
\51\https://www.pew.org/en/research-and-analysis/articles/2024/01/
30/borrowers-with-certain-educational-experiences-appear-more-likely-
to-default.
---------------------------------------------------------------------------
Low Public Trust in Costs
Concerns and perceptions about college costs result in low
levels of trust and confidence in higher education. A 2025 poll
by College Consensus found that 56 percent of Americans who
have low levels of trust in higher education point to ``high
costs and debt'' as the reason.\52\ A 2025 Pew Research Survey
found that 70 percent of Americans say that the higher
education system in the United States is going in the wrong
direction, with nearly 80 percent of Americans saying colleges
are doing a ``fair/poor'' job of ``keeping tuition costs
affordable.''\53\ A 2025 Politico Poll revealed only 25 percent
of Americans say that college is ``worth the money'';
shockingly, 60 percent of college graduates did not think
college was worth the cost.\54\ Poll after poll reveals that
``affordability of higher education'' is high on the priority
list for families and students.\55\ As Brookings Fellow Phillip
Levin states, ``We cannot expect students to make sound
decisions regarding educational investments if they do not
understand how much college will actually cost them.''\56\
---------------------------------------------------------------------------
\52\https://www.collegeconsensus.com/research/trust-in-higher-
education/.
\53\https://www.pewresearch.org/short-reads/2025/10/15/growing-
share-of-americans-say-the-us-higher-education-system-is-headed-in-the-
wrong-direction/.
\54\https://www.politico.com/newsletters/weekly-education/2025/12/
01/why-americans-say-
college-isnt-worth-the-cost-00671162.
\55\https://www.ncsl.org/education/the-ncsl-task-force-on-higher-
education-final-report-in-brief.
\56\https://www.brookings.edu/articles/ignore-the-sticker-price-
how-have-college-prices-really-changed/.
---------------------------------------------------------------------------
CONCLUSION
Students and families face significant challenges
understanding and comparing the true cost and value of higher
education. College pricing information is often inconsistent,
difficult to compare across institutions and programs, and
unclear about total costs, debt, and outcomes, making it harder
for students to make informed enrollment decisions. The Student
Financial Clarity Act codifies the Scorecard tool to ensure
students have clear, consistent, and reliable access to
information on college costs, financial aid, completion, debt,
and earnings. Having standardized, program-level data available
will allow students and families to compare colleges based on
price, time to credential, and outcomes. Greater transparency
encourages competition among institutions, helps curb
unexpected costs and borrowing, and strengthens accountability
for student outcomes.
Section-by-Section Summary
Section 1--Short title
Student Financial Clarity Act
Section 2--Consumer information
Unless otherwise noted, the provisions below
amend section 132 of HEA.
No later than 18 months after
enactment, the Secretary shall make
institutional information publicly available on
the College Scorecard website subject to the
following requirements:
Must comply with applicable
federal privacy statutes
Must only include students
who have received federal financial
assistance
Must be for the most recent
award year with available information
The consumer information must
include the following institutional data:
A link to the institution's
website
A link to the Universal Net
Price Calculator and, if applicable,
any net price calculator developed by
the institution
Information on the type of
institution
Subject matter scores and
combined scores for college entrance
exams (such as the SAT/ACT)
Acceptance rate (percentage
of individuals who submitted a
completed application who were accepted
for enrollment)
Institution's cohort default
rate
A link to the institution's
website containing campus safety
information
The consumer information must
include the following institutional and program
of study data:
Geographic location
Information on student
enrollment
Information on number of
undergraduates who have transferred
from another institution
Information on student
progression and completion
Information on college costs
and financial aid, including:
Average, median,
minimum, and maximum values of:
Required
costs for such award
year
Cost of
attendance for such
award year
Amount
of grant and
scholarship aid
received by students
for such award year,
disaggregated by source
and by need-based,
merit-based, athletic-
based or another type.
Average, median,
minimum, and maximum values for
students who completed a
credential (during the most
recent award year) of the
following: Program length, Time
to credential, Amount of grant
and scholarship aid received by
students for the time to
credential, Total net price for
completion, and Total net price
required for attendance
Number and
percentage of students
receiving any grant and
scholarship aid for such award
year
For students who
completed a credential (during
the most recent award year),
the number and percentage of
said students receiving any
grant and scholarship aid
Average annual
percentage change and dollar
change in the required costs
for the three most recent
academic years
Average annual
percentage change and dollar
change in net price required
for completion for the three
most recent academic years
Information on student debt
and repayment, including:
Average, median,
minimum, and maximum amounts
borrowed by students until
title IV
Information on
repayment of loans made under
Title IV
Number and
percentage of students who:
Are
borrowers of a loan
under Title IV
Are not
borrowers of a loan
under Title IV but have
at least one parent who
is a borrower under
Title IV on behalf of
the student
Are both
borrowers of a loan
under Title IV and have
a parent who is a
borrower under Title IV
of the student
Information on the earnings
of students (both those who have and
have not completed), including value-
added earnings of students who have
completed their program
Information on the
credential awarded by each program of
study
Disaggregated Information
Information above must be
disaggregated by the following
information: financial circumstances,
sex, race and ethnicity, disability,
enrollment status, year of enrollment,
in-state vs out of state student,
international student, and type of
federal aid being received (including
aid from VA or DOD or DOL).
Access, Comparisons, and
Privacy: College Scorecard website must have
the following:
A method for users to
compare institutions and programs by
institutional and program information
and by disaggregated student
characteristics
Access to information in an
electronic and downloadable format
Privacy protections in
accordance with applicable privacy
statutes and appropriate statistical
disclosure limitation techniques to
protect personally identifiable
information
Requires the Secretary to
annually update the data on the College
Scorecard
Requires the Secretary to update
Data Collection and improve the Integrated
Postsecondary Education Data System, including
the reporting of information by institutions
and the timeliness of the data
Universal Net Price Calculator
Not later than 18 months after
enactment, the Secretary shall establish a
Universal Net Price Calculator that
Allows an individual to
select and compare multiple
institutions and programs of study for
estimates
Provides the individual the
following information, using
information from similarly situated
students (based on an individual's
information provided) for the most
recent award year:
Annual estimated net
price required for completion
for each year of expected
enrollment based on the program
length of a program of study
Total estimated net
price required for completion
(sum of each annual estimated
net price required for
completion for each year of the
program)
Annual estimated net
price of attendance for each
year of expected enrollment
based on the program length of
a program of study
Total estimated net
price of attendance (sum of
each annual estimated net price
of attendance for each year of
the program)
Calculates net price
estimates, with the following:
Uses an estimated
annual change based on the
annual percentage change in an
institution's or program's
costs for the most recent 3
years
Allows an individual
the option to replace this
estimated annual change with an
alternative
Allows an individual
the option to calculate net
price estimates with a multi-
year tuition or net price
guarantee program, if
applicable
Uses an individual's
information based on
Questions developed
by the Secretary to capture
specific disaggregated student
information
Student-level data
reported by institutions in
accordance with the Financial
Value Transparency regulation
A student's FAFSA
submission
Any additional
information provided by the
individual for an individual's
grant and scholarships
Provides access to
information in an electronic and
downloadable format
Secretary shall update data on
the Universal Net Price Calculator not less
than annually and regularly assess the format
and technology of the Universal Net Price
Calculator to make appropriate changes
Secretary shall include a link
to the Universal Net Price Calculator on the
FAFSA website (or similar successor website)
Secretary shall consult with
each appropriate head of federal departments or
agencies to ensure consistent publishing of
information
Secretary, in consultation with
each appropriate head of federal departments or
agencies, shall conduct consumer testing
Not later than 6 months
after the effective date and not less
than once every 4 years thereafter
With appropriate
populations, including current and
prospective college students, family
members, institutions, and experts
To improve the usefulness
and relevance of the College Scorecard
and Universal Net Price Calculator
websites
Not later than two years after
the Universal Net Price Calculator is
developed, institutions must
Make the Universal Net Price
Calculator publicly available on an
institution's website, or
Develop an institution's
calendar with, at a minimum, the same
data elements
Estimates calculated by the
Universal Net Price Calculator will have a
notice that:
The estimates are not a
final determination of financial
assistance, are not legally binding,
and may change
Individuals must complete
the FAFSA to be eligible
Includes a link to the FAFSA
Explains the net price
estimate may differ from the net price
offered by an institution's calculator
due to different methodology
Section 3--Other amendments
Amends section 472 to update the
cost of attendance definition to factor in
different programs of study
Amends section 103 to define
program of study to separate programs by major
through the Classification of Instructional
Programs (CIP) code and credential level
Amends section 485 to eliminate
outdated FAFSA early estimator tool
Amends all language references
to College Scorecard
Section 4--Effective date
Amendments shall take effect
July 2027 and apply in award year 2027-2028 and
every subsequent year
Amends all language references
to College Scorecard
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of Public Law 104-1.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act of 1974, Pub. L. No. 93-344 (as amended
by Section 101(a)(2) of the Unfunded Mandates Reform Act of
1995, Pub. L. No. 104-4), the Committee traditionally adopts as
its own the cost estimate prepared by the Director of the
Congressional Budget Office (CBO) pursuant to section 402 of
the Congressional Budget and Impoundment Control Act of 1974.
The Committee reports that because this cost estimate was not
timely submitted to the Committee before the filing of this
report, the Committee is not in a position to make a cost
estimate for H.R. 6498.
Earmark Statement
H.R. 6498 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House rule XXI.
Roll Call Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of rule XIII of the Rules
of the House of Representatives, the goal of H.R. 6498 is to
strengthen transparency and consumer access to information on
college costs, financial aid, debt, and outcomes by codifying
and expanding the College Scorecard and Universal Net Price
Calculator.
Duplication of Federal Programs
No provision of H.R. 6498 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Statement of Oversight Findings and Recommendations of
the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the body of this report.
Required Committee Hearing
In compliance with clause 3(c)(6) of rule XIII the
following hearing held during the 119th Congress was used to
develop or consider H.R. 6498: On September 16, 2025, the
Committee's Higher Education and Workforce Development
Subcommittee held a hearing on ``No More Surprises, Reforming
College Pricing for Students and Families.''
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, a cost estimate was not made
available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 6498.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when, as with the present report,
the Committee has requested a cost estimate for the bill from
the Director of the Congressional Budget Office.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
* * * * * * *
SEC. 103. ADDITIONAL DEFINITIONS.
In this Act:
(1) Authorizing committees.--The term ``authorizing
committees'' means the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Education and Labor of the House of Representatives.
(2) Combination of institutions of higher
education.--The term ``combination of institutions of
higher education'' means a group of institutions of
higher education that have entered into a cooperative
arrangement for the purpose of carrying out a common
objective, or a public or private nonprofit agency,
organization, or institution designated or created by a
group of institutions of higher education for the
purpose of carrying out a common objective on the
group's behalf.
(3) Critical foreign language.--Except as otherwise
provided, the term ``critical foreign language'' means
each of the languages contained in the list of critical
languages designated by the Secretary in the Federal
Register on August 2, 1985 (50 Fed. Reg. 31412;
promulgated under the authority of section 212(d) of
the Education for Economic Security Act (repealed by
section 2303 of the Augustus F. Hawkins-Robert T.
Stafford Elementary and Secondary School Improvement
Amendments of 1988)), as updated by the Secretary from
time to time and published in the Federal Register,
except that in the implementation of this definition
with respect to a specific title, the Secretary may set
priorities according to the purposes of such title and
the national security, economic competitiveness, and
educational needs of the United States.
(4) Department.--The term ``Department'' means the
Department of Education.
(5) Diploma mill.--The term ``diploma mill'' means an
entity that--
(A)(i) offers, for a fee, degrees, diplomas,
or certificates, that may be used to represent
to the general public that the individual
possessing such a degree, diploma, or
certificate has completed a program of
postsecondary education or training; and
(ii) requires such individual to complete
little or no education or coursework to obtain
such degree, diploma, or certificate; and
(B) lacks accreditation by an accrediting
agency or association that is recognized as an
accrediting agency or association of
institutions of higher education (as such term
is defined in section 102) by--
(i) the Secretary pursuant to subpart
2 of part H of title IV; or
(ii) a Federal agency, State
government, or other organization or
association that recognizes accrediting
agencies or associations.
(6) Disability.--The term ``disability'' has the same
meaning given that term under section 3(2) of the
Americans With Disabilities Act of 1990.
(7) Distance education.--
(A) In general.--Except as otherwise
provided, the term``distance education''means
education that uses one or more of the
technologies described in subparagraph (B)--
(i) to deliver instruction to
students who are separated from the
instructor; and
(ii) to support regular and
substantive interaction between the
students and the instructor,
synchronously or asynchronously.
(B) Inclusions.--For the purposes of
subparagraph (A), the technologies used may
include--
(i) the Internet;
(ii) one-way and two-way
transmissions through open broadcast,
closed circuit, cable, microwave,
broadband lines, fiber optics,
satellite, or wireless communications
devices;
(iii) audio conferencing; or
(iv) video cassettes, DVDs, and CD-
ROMs, if the cassettes, DVDs, or CD-
ROMs are used in a course in
conjunction with any of the
technologies listed in clauses (i)
through (iii).
(8) Early childhood education program.--The term
``early childhood education program'' means--
(A) a Head Start program or an Early Head
Start program carried out under the Head Start
Act (42 U.S.C. 9831 et seq.), including a
migrant or seasonal Head Start program, an
Indian Head Start program, or a Head Start
program or an Early Head Start program that
also receives State funding;
(B) a State licensed or regulated child care
program; or
(C) a program that--
(i) serves children from birth
through age six that addresses the
children's cognitive (including
language, early literacy, and early
mathematics), social, emotional, and
physical development; and
(ii) is--
(I) a State prekindergarten
program;
(II) a program authorized
under section 619 or part C of
the Individuals with
Disabilities Education Act; or
(III) a program operated by a
local educational agency.
(9) Elementary school.--The term ``elementary
school'' has the same meaning given that term under
section 8101 of the Elementary and Secondary Education
Act of 1965.
(10) Gifted and talented.--The term ``gifted and
talented'' has the same meaning given that term under
section 8101 of the Elementary and Secondary Education
Act of 1965.
(11) Local educational agency.--The term ``local
educational agency'' has the same meaning given that
term under section 8101 of the Elementary and Secondary
Education Act of 1965.
(12) New borrower.--The term ``new borrower'' when
used with respect to any date means an individual who
on that date has no outstanding balance of principal or
interest owing on any loan made, insured, or guaranteed
under title IV.
(13) Nonprofit.--The term ``nonprofit'' as applied to
a school, agency, organization, or institution means a
school, agency, organization, or institution owned and
operated by one or more nonprofit corporations or
associations, no part of the net earnings of which
inures, or may lawfully inure, to the benefit of any
private shareholder or individual.
(14) Poverty line.--The term ``poverty line'' means
the poverty line (as defined in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2))
applicable to a family of the size involved.
(15) Program of study defined.--
(A) In general.--The 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 code.--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.
(C) Credential level.--
(i) In general.--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.
(ii) Undergraduate credential.--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)).
(iii) Graduate credential.--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.
[(15)] (16) School or department of divinity.--The
term ``school or department of divinity'' means an
institution, or a department or a branch of an
institution, the program of instruction of which is
designed for the education of students--
(A) to prepare the students to become
ministers of religion or to enter upon some
other religious vocation (or to provide
continuing training for any such vocation); or
(B) to prepare the students to teach
theological subjects.
[(16)] (17) Secondary school.--The term ``secondary
school'' has the same meaning given that term under
section 8101 of the Elementary and Secondary Education
Act of 1965.
[(17)] (18) Secretary.--The term ``Secretary'' means
the Secretary of Education.
[(18)] (19) Service-learning.--The term ``service-
learning'' has the same meaning given that term under
section 101(23) of the National and Community Service
Act of 1990.
[(19)] (20) Special education teacher.--The term
``special education teacher'' means teachers who teach
children with disabilities as defined in section 602 of
the Individuals with Disabilities Education Act.
[(20)] (21) State; freely associated states.--
(A) State.--The term ``State'' includes, in
addition to the several States of the United
States, the Commonwealth of Puerto Rico, the
District of Columbia, Guam, American Samoa, the
United States Virgin Islands, the Commonwealth
of the Northern Mariana Islands, and the Freely
Associated States.
(B) Freely associated states.--The term
``Freely Associated States'' means the Republic
of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
[(21)] (22) State educational agency.--The term
``State educational agency'' has the same meaning given
that term under section 8101 of the Elementary and
Secondary Education Act of 1965.
[(22)] (23) State higher education agency.--The term
``State higher education agency'' means the officer or
agency primarily responsible for the State supervision
of higher education.
[(23)] (24) Universal design.--The term``universal
design''has the meaning given the term in section 3 of
the Assistive Technology Act of 1998 (29 U.S.C. 3002).
[(24)] (25) Universal design for learning.--The term
``universal design for learning'' means a
scientifically valid framework for guiding educational
practice that--
(A) provides flexibility in the ways
information is presented, in the ways students
respond or demonstrate knowledge and skills,
and in the ways students are engaged; and
(B) reduces barriers in instruction, provides
appropriate accommodations, supports, and
challenges, and maintains high achievement
expectations for all students, including
students with disabilities and students who are
limited English proficient.
* * * * * * *
PART C--COST OF HIGHER EDUCATION
SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC ACCOUNTABILITY
IN HIGHER EDUCATION.
(a) Improved Data Collection.--
(1) Development of uniform methodology.--The
Secretary shall direct the Commissioner of Education
Statistics to convene a series of forums to develop
nationally consistent methodologies for reporting costs
incurred by postsecondary institutions in providing
postsecondary education.
(2) Redesign of data systems.--On the basis of the
methodologies developed pursuant to paragraph (1), the
Secretary shall redesign relevant parts of the
postsecondary education data systems to improve the
usefulness and timeliness of the data collected by such
systems.
(3) Information to institutions.--The Commissioner of
Education Statistics shall--
(A) develop a standard definition for the
following data elements:
(i) tuition and fees for a full-time
undergraduate student;
(ii) cost of attendance for a full-
time undergraduate student, consistent
with the provisions of section 472;
(iii) average amount of financial
assistance received by an undergraduate
student who attends an institution of
higher education, including--
(I) each type of assistance
or benefit described in section
428(a)(2)(C)(ii);
(II) fellowships; and
(III) institutional and other
assistance; and
(iv) number of students receiving
financial assistance described in each
of subclauses (I), (II), and (III) of
clause (iii);
(B) not later than 90 days after the date of
enactment of the Higher Education Amendments of
1998, report the definitions to each
institution of higher education and within a
reasonable period of time thereafter inform the
authorizing committees of those definitions;
and
(C) collect information regarding the data
elements described in subparagraph (A) with
respect to at least all institutions of higher
education participating in programs under title
IV, beginning with the information from
academic year 2000-2001 and annually
thereafter.
(b) Data Dissemination.--The Secretary shall make available
the data collected pursuant to subsection (a). Such data shall
be available in a form that permits the review and comparison
of the data submissions of individual institutions of higher
education. Such data shall be presented in a form that is
easily understandable and allows parents and students to make
informed decisions based on the costs for typical full-time
undergraduate students.
(c) Study.--
(1) In general.--The Commissioner of Education
Statistics shall conduct a national study of
expenditures at institutions of higher education. Such
study shall include information with respect to--
(A) the change in tuition and fees compared
with the consumer price index and other
appropriate measures of inflation;
(B) faculty salaries and benefits;
(C) administrative salaries, benefits and
expenses;
(D) academic support services;
(E) research;
(F) operations and maintenance; and
(G) institutional expenditures for
construction and technology and the potential
cost of replacing instructional buildings and
equipment.
(2) Evaluation.--The study shall include an
evaluation of--
(A) changes over time in the expenditures
identified in paragraph (1);
(B) the relationship of the expenditures
identified in paragraph (1) to college costs;
and
(C) the extent to which increases in
institutional financial aid and tuition
discounting practices affect tuition increases,
including the demographics of students
receiving such discounts, the extent to which
financial aid is provided to students with
limited need in order to attract a student to a
particular institution, and the extent to which
Federal financial aid, including loan aid, has
been used to offset the costs of such
practices.
(3) Final report.--The Commissioner of Education
Statistics shall submit a report regarding the findings
of the study required by paragraph (1) to the
appropriate committees of Congress not later than
September 30, 2002.
(4) Higher education market basket.--The Bureau of
Labor Statistics, in consultation with the Commissioner
of Education Statistics, shall develop a higher
education market basket that identifies the items that
comprise the costs of higher education. The Bureau of
Labor Statistics shall provide a report on the market
basket to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives not later
than September 30, 2002.
(5) Fines.--In addition to actions authorized in
section 487(c), the Secretary may impose a fine in an
amount not to exceed $25,000 on an institution of
higher education for failing to provide the information
described in paragraph (1) in a timely and accurate
manner, or for failing to otherwise cooperate with the
National Center for Education Statistics regarding
efforts to obtain data on the cost of higher education
under this section and pursuant to the program
participation agreement entered into under section 487.
(d) Promotion of the Department of Education Federal Student
Financial Aid Website.--The Secretary shall display a link to
the Federal student financial aid website of the Department in
a prominent place on the homepage of the Department's website.
(e) Enhanced Student Financial Aid Information.--
(1) Implementation.--The Secretary shall continue to
improve the usefulness and accessibility of the
information provided by the Department on college
planning and student financial aid.
(2) Dissemination.--The Secretary shall continue to
make the availability of the information on the Federal
student financial aid website of the Department widely
known, through a major media campaign and other forms
of communication.
(3) Coordination.--As a part of the efforts required
under this subsection, the Secretary shall create one
website accessible from the Department's website that
fulfills the requirements under subsections (b), (f),
and (g).
(f) Improved Availability and Coordination of Information
Concerning Student Financial Aid Programs for Military Members
and Veterans.--
(1) Coordination.--The Secretary, in coordination
with the Secretary of Defense and the Secretary of
Veterans Affairs, shall create a searchable website
that--
(A) contains information, in simple and
understandable terms, about all Federal and
State student financial assistance, readmission
requirements under section 484C, and other
student services, for which members of the
Armed Forces (including members of the National
Guard and Reserves), veterans, and the
dependents of such members or veterans may be
eligible; and
(B) is easily accessible through the website
described in subsection (e)(3).
(2) Implementation.--Not later than one year after
the date of enactment of the Higher Education
Opportunity Act, the Secretary shall make publicly
available the Armed Forces information website
described in paragraph (1).
(3) Dissemination.--The Secretary, in coordination
with the Secretary of Defense and the Secretary of
Veterans Affairs, shall make the availability of the
Armed Forces information website described in paragraph
(1) widely known to members of the Armed Forces
(including members of the National Guard and Reserves),
veterans, the dependents of such members or veterans,
States, institutions of higher education, and the
general public.
(4) Definition.--In this subsection, the term
``Federal and State student financial assistance''
means any grant, loan, work assistance, tuition
assistance, scholarship, fellowship, or other form of
financial aid for pursuing a postsecondary education
that is--
(A) administered, sponsored, or supported by
the Department of Education, the Department of
Defense, the Department of Veterans Affairs, or
a State; and
(B) available to members of the Armed Forces
(including members of the National Guard and
Reserves), veterans, or the dependents of such
members or veterans.
(g) Promotion of Availability of Information Concerning Other
Student Financial Aid Programs.--
(1) Definition.--For purposes of this subsection, the
term ``nondepartmental student financial assistance
program'' means any grant, loan, scholarship,
fellowship, or other form of financial aid for students
pursuing a postsecondary education that is--
(A) distributed directly to the student or to
the student's account at an institution of
higher education; and
(B) operated, sponsored, or supported by a
Federal department or agency other than the
Department of Education.
(2) Availability of other student financial aid
information.--The Secretary shall ensure that--
(A) not later than 90 days after the
Secretary receives the information required
under paragraph (3), the eligibility
requirements, application procedures, financial
terms and conditions, and other relevant
information for each nondepartmental student
financial assistance program are searchable and
accessible through the Federal student
financial aid website in a manner that is
simple and understandable for students and the
students' families; and
(B) the website displaying the information
described in subparagraph (A) includes a link
to the National Database on Financial
Assistance for the Study of Science,
Technology, Engineering, and Mathematics
pursuant to paragraph (4), and the information
on military benefits under subsection (f), once
such Database and information are available.
(3) Nondepartmental student financial assistance
programs.--The Secretary shall request all Federal
departments and agencies to provide the information
described in paragraph (2)(A), and each Federal
department or agency shall--
(A) promptly respond to surveys or other
requests from the Secretary for the information
described in such paragraph; and
(B) identify for the Secretary any
nondepartmental student financial assistance
program operated, sponsored, or supported by
such Federal department or agency.
(4) National stem database.--
(A) In general.--The Secretary shall
establish and maintain, on the website
described in subsection (e)(3), a National
Database on Financial Assistance for the Study
of Science, Technology, Engineering, and
Mathematics (in this paragraph referred to as
the ``STEM Database''). The STEM Database shall
consist of information on scholarships,
fellowships, and other programs of Federal,
State, local, and, to the maximum extent
practicable, private financial assistance
available for the study of science, technology,
engineering, or mathematics at the
postsecondary and postbaccalaureate levels.
(B) Database contents.--The information
maintained on the STEM Database shall be
displayed on the website in the following
manner:
(i) Separate information.--The STEM
Database shall provide separate
information for each of the fields of
science, technology, engineering, and
mathematics, and for postsecondary and
postbaccalaureate programs of financial
assistance.
(ii) Information on targeted
assistance.--The STEM Database shall
provide specific information on any
program of financial assistance that is
targeted to individuals based on
financial need, merit, or student
characteristics.
(iii) Contact and website
information.--The STEM Database shall
provide--
(I) standard contact
information that an interested
person may use to contact a
sponsor of any program of
financial assistance included
in the STEM Database; and
(II) if such sponsor
maintains a public website, a
link to the website.
(iv) Search and match capabilities.--
The STEM Database shall--
(I) have a search capability
that permits an individual to
search for information on the
basis of each category of the
information provided through
the STEM Database and on the
basis of combinations of
categories of the information
provided, including--
(aa) whether the
financial assistance is
need- or merit-based;
and
(bb) by relevant
academic majors; and
(II) have a match capability
that--
(aa) searches the
STEM Database for all
financial assistance
opportunities for which
an individual may be
qualified to apply,
based on the student
characteristics
provided by such
individual; and
(bb) provides
information to an
individual for only
those opportunities for
which such individual
is qualified, based on
the student
characteristics
provided by such
individual.
(v) Recommendation and disclaimer.--
The STEM Database shall provide, to the
users of the STEM Database--
(I) a recommendation that
students and families should
carefully review all of the
application requirements prior
to applying for any aid or
program of student financial
assistance; and
(II) a disclaimer that the
non-Federal programs of student
financial assistance presented
in the STEM Database are not
provided or endorsed by the
Department or the Federal
Government.
(C) Compilation of financial assistance
information.--In carrying out this paragraph,
the Secretary shall--
(i) consult with public and private
sources of scholarships, fellowships,
and other programs of student financial
assistance; and
(ii) make easily available a process
for such entities to provide regular
and updated information about the
scholarships, fellowships, or other
programs of student financial
assistance.
(D) Contract authorized.--In carrying out the
requirements of this paragraph, the Secretary
is authorized to enter into a contract with a
private entity with demonstrated expertise in
creating and maintaining databases such as the
one required under this paragraph, under which
contract the entity shall furnish, and
regularly update, all of the information
required to be maintained on the STEM Database.
(5) Dissemination of information.--The Secretary
shall take such actions, on an ongoing basis, as may be
necessary to disseminate information under this
subsection and to encourage the use of the information
by interested parties, including sending notices to
secondary schools and institutions of higher education.
(h) No User Fees for Department Financial Aid Websites.--No
fee shall be charged to any individual to access--
(1) a database or website of the Department that
provides information about higher education programs or
student financial assistance, including the [College
Navigator] College Scorecard website (or successor
website) and the websites and databases described in
this section and section 132; or
(2) information about higher education programs or
student financial assistance available through a
database or website of the Department.
SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
[(a) Definitions.--In this section:
[(1) College navigator website.--The term ``College
Navigator website'' means the College Navigator website
operated by the Department and includes any successor
website.
[(2) Cost of attendance.--The term ``cost of
attendance'' means the average annual cost of tuition
and fees, room and board, books, supplies, and
transportation for an institution of higher education
for a first-time, full-time undergraduate student
enrolled in the institution.
[(3) Net price.--The term ``net price'' means the
average yearly price actually charged to first-time,
full-time undergraduate students receiving student aid
at an institution of higher education after deducting
such aid, which shall be determined by calculating the
difference between--
[(A) the institution's cost of attendance for
the year for which the determination is made;
and
[(B) the quotient of--
[(i) the total amount of need-based
grant aid and merit-based grant aid,
from Federal, State, and institutional
sources, provided to such students
enrolled in the institution for such
year; and
[(ii) the total number of such
students receiving such need-based
grant aid or merit-based grant aid for
such year.
[(4) Tuition and fees.--The term ``tuition and fees''
means the average annual cost of tuition and fees for
an institution of higher education for first-time,
full-time undergraduate students enrolled in the
institution.
[(b) Calculations for Public Institutions.--In making the
calculations regarding cost of attendance, net price, and
tuition and fees under this section with respect to a public
institution of higher education, the Secretary shall calculate
the cost of attendance, net price, and tuition and fees at such
institution in the manner described in subsection (a), except
that--
[(1) the cost of attendance, net price, and tuition
and fees shall be calculated for first-time, full-time
undergraduate students enrolled in the institution who
are residents of the State in which such institution is
located; and
[(2) in determining the net price, the average need-
based grant aid and merit-based grant aid described in
subsection (a)(3)(B) shall be calculated based on the
average total amount of such aid received by first-
time, full-time undergraduate students who are
residents of the State in which such institution is
located, divided by the total number of such resident
students receiving such need-based grant aid or merit-
based grant aid at such institution.
[(c) College Affordability and Transparency Lists.--
[(1) Availability of lists.--Beginning July 1, 2011,
the Secretary shall make publicly available on the
College Navigator website, in a manner that is sortable
and searchable by State, the following:
[(A) A list of the five percent of
institutions in each category described in
subsection (d) that have the highest tuition
and fees for the most recent academic year for
which data are available.
[(B) A list of the five percent of
institutions in each such category that have
the highest net price for the most recent
academic year for which data are available.
[(C) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in tuition and fees over the most
recent three academic years for which data are
available, using the first academic year of the
three-year period as the base year to compute
such percentage change.
[(D) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in net price over the most recent three
academic years for which data are available,
using the first academic year of the three-year
period as the base year to compute such
percentage change.
[(E) A list of the ten percent of
institutions in each such category that have
the lowest tuition and fees for the most recent
academic year for which data are available.
[(F) A list of the ten percent of
institutions in each such category that have
the lowest net price for the most recent
academic year for which data are available.
[(2) Annual updates.--The Secretary shall annually
update the lists described in paragraph (1) on the
College Navigator website.
[(d) Categories of Institutions.--The lists described in
subsection (c)(1) shall be compiled according to the following
categories of institutions that participate in programs under
title IV:
[(1) Four-year public institutions of higher
education.
[(2) Four-year private, nonprofit institutions of
higher education.
[(3) Four-year private, for-profit institutions of
higher education.
[(4) Two-year public institutions of higher
education.
[(5) Two-year private, nonprofit institutions of
higher education.
[(6) Two-year private, for-profit institutions of
higher education.
[(7) Less than two-year public institutions of higher
education.
[(8) Less than two-year private, nonprofit
institutions of higher education.
[(9) Less than two-year private, for-profit
institutions of higher education.
[(e) Reports by Institutions.--
[(1) Report to secretary.--If an institution of
higher education is included on a list described in
subparagraph (C) or (D) of subsection (c)(1), the
institution shall submit to the Secretary a report
containing the following information:
[(A) A description of the major areas in the
institution's budget with the greatest cost
increases.
[(B) An explanation of the cost increases
described in subparagraph (A).
[(C) A description of the steps the
institution will take toward the goal of
reducing costs in the areas described in
subparagraph (A).
[(D) In the case of an institution that is
included on the same list under subparagraph
(C) or (D) of subsection (c)(1) for two or more
consecutive years, a description of the
progress made on the steps described in
subparagraph (C) of this paragraph that were
included in the institution's report for the
previous year.
[(E) If the determination of any cost
increase described in subparagraph (A) is not
within the exclusive control of the
institution--
[(i) an explanation of the extent to
which the institution participates in
determining such cost increase;
[(ii) the identification of the
agency or instrumentality of State
government responsible for determining
such cost increase; and
[(iii) any other information the
institution considers relevant to the
report.
[(2) Information to the public.--The Secretary
shall--
[(A) issue an annual report that summarizes
all of the reports by institutions required
under paragraph (1) to the authorizing
committees; and
[(B) publish such report on the College
Navigator website.
[(f) Exemptions.--
[(1) In general.--An institution shall not be placed
on a list described in subparagraph (C) or (D) of
subsection (c)(1), and shall not be subject to the
reporting required under subsection (e), if the dollar
amount of the institution's increase in tuition and
fees, or net price, as applicable, is less than $600
for the three-year period described in such
subparagraph.
[(2) Update.--Beginning in 2014, and every three
years thereafter, the Secretary shall update the dollar
amount described in paragraph (1) based on annual
increases in inflation, using the Consumer Price Index
for each of the three most recent preceding years.
[(g) State Higher Education Spending Chart.--The Secretary
shall annually report on the College Navigator website, in
charts for each State, comparisons of--
[(1) the percentage change in spending by such State
per full-time equivalent student at all public
institutions of higher education in such State, for
each of the five most recent preceding academic years;
[(2) the percentage change in tuition and fees for
such students for all public institutions of higher
education in such State for each of the five most
recent preceding academic years; and
[(3) the percentage change in the total amount of
need-based aid and merit-based aid provided by such
State to full-time students enrolled in the public
institutions of higher education in the State for each
of the five most recent preceding academic years.
[(h) Net Price Calculator.--
[(1) Development of net price calculator.--Not later
than one year after the date of enactment of theHigher
Education Opportunity Act, the Secretary shall, in
consultation with institutions of higher education and
other appropriate experts, develop a net price
calculator to help current and prospective students,
families, and other consumers estimate the individual
net price of an institution of higher education for a
student. The calculator shall be developed in a manner
that enables current and prospective students,
families, and consumers to determine an estimate of a
current or prospective student's individual net price
at a particular institution.
[(2) Calculation of individual net price.--For
purposes of this subsection, an individual net price of
an institution of higher education shall be calculated
in the same manner as the net price of such institution
is calculated under subsection (a)(3), except that the
cost of attendance and the amount of need-based and
merit-based aid available shall be calculated for the
individual student as much as practicable.
[(3) Use of net price calculator by institutions.--
Not later than two years after the date on which the
Secretary makes the calculator developed under
paragraph (1) available to institutions of higher
education, each institution of higher education that
receives Federal funds under title IV shall make
publicly available on the institution's website a net
price calculator to help current and prospective
students, families, and other consumers estimate a
student's individual net price at such institution of
higher education. Such calculator may be a net price
calculator developed--
[(A) by the Department pursuant to paragraph
(1); or
[(B) by the institution of higher education,
if the institution's calculator includes, at a
minimum, the same data elements included in the
calculator developed under paragraph (1).
[(4) Disclaimer.--Estimates of an individual net
price determined using a net price calculator required
under paragraph (3) shall be accompanied by a clear and
conspicuous notice--
[(A) stating that the estimate--
[(i) does not represent a final
determination, or actual award, of
financial assistance;
[(ii) shall not be binding on the
Secretary, the institution of higher
education, or the State; and
[(iii) may change;
[(B) stating that the student must complete
the Free Application for Federal Student Aid
described in section 483 in order to be
eligible for, and receive, an actual financial
aid award that includes Federal grant, loan, or
work-study assistance under title IV; and
[(C) including a link to the website of the
Department that allows students to access the
Free Application for Federal Student Aid
described in section 483.
[(i) Consumer Information.--
[(1) Availability of title iv institution
information.--Not later than one year after the date of
enactment of the Higher Education Opportunity Act, the
Secretary shall make publicly available on the College
Navigator website, in simple and understandable terms,
the following information about each institution of
higher education that participates in programs under
title IV, for the most recent academic year for which
satisfactory data are available:
[(A) A statement of the institution's
mission.
[(B) The total number of undergraduate
students who applied to, were admitted by, and
enrolled in the institution.
[(C) For institutions that require SAT or ACT
scores to be submitted, the reading, writing,
mathematics, and combined scores on the SAT or
ACT, as applicable, for the middle 50 percent
range of the institution's freshman class.
[(D) The number of first-time, full-time, and
part-time students enrolled at the institution,
at the undergraduate and (if applicable)
graduate levels.
[(E) The number of degree- or certificate-
seeking undergraduate students enrolled at the
institution who have transferred from another
institution.
[(F) The percentages of male and female
undergraduate students enrolled at the
institution.
[(G) Of the first-time, full-time, degree- or
certificate-seeking undergraduate students
enrolled at the institution--
[(i) the percentage of such students
who are from the State in which the
institution is located;
[(ii) the percentage of such students
who are from other States; and
[(iii) the percentage of such
students who are international
students.
[(H) The percentages of first-time, full-
time, degree- or certificate-seeking students
enrolled at the institution, disaggregated by
race and ethnic background.
[(I) The percentage of undergraduate students
enrolled at the institution who are formally
registered with the office of disability
services of the institution (or the equivalent
office) as students with disabilities, except
that if such percentage is three percent or
less, the institution shall report ``three
percent or less''.
[(J) The percentages of first-time, full-
time, degree- or certificate-seeking
undergraduate students enrolled at the
institution who obtain a degree or certificate
within--
[(i) the normal time for completion
of, or graduation from, the student's
program;
[(ii) 150 percent of the normal time
for completion of, or graduation from,
the student's program; and
[(iii) 200 percent of the normal time
for completion of, or graduation from,
the student's program;
[(K) The number of certificates, associate
degrees, baccalaureate degrees, master's
degrees, professional degrees, and doctoral
degrees awarded by the institution.
[(L) The undergraduate major areas of study
at the institution with the highest number of
degrees awarded.
[(M) The student-faculty ratio, the number of
full-time and part-time faculty, and the number
of graduate assistants with primarily
instructional responsibilities, at the
institution.
[(N)(i) The cost of attendance for first-
time, full-time undergraduate students enrolled
in the institution who live on campus;
[(ii) the cost of attendance for first-time,
full-time undergraduate students enrolled in
the institution who live off campus; and
[(iii) in the case of a public institution of
higher education and notwithstanding subsection
(b)(1), the costs described in clauses (i) and
(ii), for--
[(I) first-time, full-time students
enrolled in the institution who are
residents of the State in which the
institution is located; and
[(II) first-time, full-time students
enrolled in the institution who are not
residents of such State.
[(O) The average annual grant amount
(including Federal, State, and institutional
aid) awarded to a first-time, full-time
undergraduate student enrolled at the
institution who receives financial aid.
[(P) The average annual amount of Federal
student loans provided through the institution
to undergraduate students enrolled at the
institution.
[(Q) The total annual grant aid awarded to
undergraduate students enrolled at the
institution, from the Federal Government, a
State, the institution, and other sources known
by the institution.
[(R) The percentage of first-time, full-time
undergraduate students enrolled at the
institution receiving Federal, State, and
institutional grants, student loans, and any
other type of student financial assistance
known by the institution, provided publicly or
through the institution, such as Federal work-
study funds.
[(S) The number of students enrolled at the
institution receiving Federal Pell Grants.
[(T) The institution's cohort default rate,
as defined under section 435(m).
[(U) The information on campus safety
required to be collected under section 485(i).
[(V) A link to the institution's website that
provides, in an easily accessible manner, the
following information:
[(i) Student activities offered by
the institution.
[(ii) Services offered by the
institution for individuals with
disabilities.
[(iii) Career and placement services
offered by the institution to students
during and after enrollment.
[(iv) Policies of the institution
related to transfer of credit from
other institutions.
[(W) A link to the appropriate section of the
Bureau of Labor Statistics website that
provides information on regional data on
starting salaries in all major occupations.
[(X) Information required to be submitted
under paragraph (4) and a link to the
institution pricing summary page described in
paragraph (5).
[(Y) In the case of an institution that was
required to submit a report under subsection
(e)(1), a link to such report.
[(Z) The availability of alternative tuition
plans, which may include guaranteed tuition
plans.
[(2) Annual updates.--The Secretary shall annually
update the information described in paragraph (1) on
the College Navigator website.
[(3) Consultation.--The Secretary shall regularly
consult with current and prospective college students,
family members of such students, institutions of higher
education, and other experts to improve the usefulness
and relevance of the College Navigator website, with
respect to the presentation of the consumer information
collected in paragraph (1).
[(4) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the
Integrated Postsecondary Education Data System
(referred to in this section as ``IPEDS''), including
the reporting of information by institutions and the
timeliness of the data collected.
[(5) Institution pricing summary page.--
[(A) Availability of list of participating
institutions.--The Secretary shall make
publicly available on the College Navigator
website in a sortable and searchable format a
list of all institutions of higher education
that participate in programs under title IV,
which list shall, for each institution, include
the following:
[(i) The tuition and fees for each of
the three most recent academic years
for which data are available.
[(ii) The net price for each of the
three most recent available academic
years for which data are available.
[(iii)(I) During the period beginning
July 1, 2010, and ending June 30, 2013,
the net price for students receiving
Federal student financial aid under
title IV, disaggregated by the income
categories described in paragraph (6),
for the most recent academic year for
which data are available.
[(II) Beginning July 1, 2013, the net
price for students receiving Federal
student financial aid under title IV,
disaggregated by the income categories
described in paragraph (6), for each of
the three most recent academic years
for which data are available.
[(iv) The average annual percentage
change and average annual dollar change
in such institution's tuition and fees
for each of the three most recent
academic years for which data are
available.
[(v) The average annual percentage
change and average annual dollar change
in such institution's net price for
each of the three most recent preceding
academic years for which data are
available.
[(vi) A link to the webpage on the
College Navigator website that provides
the information described in paragraph
(1) for the institution.
[(B) Annual updates.--The Secretary shall
annually update the lists described in
subparagraph (A) on the College Navigator
website.
[(6) Income categories.--
[(A) In general.--For purposes of reporting
the information required under this subsection,
the following income categories shall apply for
students who receive Federal student financial
aid under title IV:
[(i) $0-30,000.
[(ii) $30,001-48,000.
[(iii) $48,001-75,000.
[(iv) $75,001-110,000.
[(v) $110,001 and more.
[(B) Adjustment.--The Secretary may adjust
the income categories listed in subparagraph
(A) using the Consumer Price Index if the
Secretary determines such adjustment is
necessary.
[(j) Multi-Year Tuition Calculator.--
[(1) Development of multi-year tuition calculator.--
Not later than one year after the date of enactment of
theHigher Education Opportunity Act, the Secretary
shall, in consultation with institutions of higher
education, financial planners, and other appropriate
experts, develop a multi-year tuition calculator to
help current and prospective students, families of such
students, and other consumers estimate the amount of
tuition an individual may pay to attend an institution
of higher education in future years.
[(2) Calculation of multi-year tuition.--The multi-
year tuition calculator described in paragraph (1)
shall--
[(A) allow an individual to select an
institution of higher education for which the
calculation shall be made;
[(B) calculate an estimate of tuition and
fees for each year of the normal duration of
the program of study at such institution by--
[(i) using the tuition and fees for
such institution, as reported under
subsection (i)(5)(A)(i), for the most
recent academic year for which such
data are reported; and
[(ii) determining an estimated annual
percentage change for each year for
which the calculation is made, based on
the annual percentage change in such
institution's tuition and fees, as
reported under subsection
(i)(5)(A)(iv), for the most recent
three-year period for which such data
are reported;
[(C) calculate an estimate of the total
amount of tuition and fees to complete a
program of study at such institution, based on
the normal duration of such program, using the
estimate calculated under subparagraph (B) for
each year of the program of study;
[(D) provide the individual with the option
to replace the estimated annual percentage
change described in subparagraph (B)(ii) with
an alternative annual percentage change
specified by the individual, and calculate an
estimate of tuition and fees for each year and
an estimate of the total amount of tuition and
fees using the alternative percentage change;
[(E) in the case of an institution that
offers a multi-year tuition guarantee program,
allow the individual to have the estimates of
tuition and fees described in subparagraphs (B)
and (C) calculated based on the provisions of
such guarantee program for the tuition and fees
charged to a student, or cohort of students,
enrolled for the duration of the program of
study; and
[(F) include any other features or
information determined to be appropriate by the
Secretary.
[(3) Availability and comparison.--The multi-year
tuition calculator described in paragraph (1) shall be
available on the College Navigator website and shall
allow current and prospective students, families of
such students, and consumers to compare information and
estimates under this subsection for multiple
institutions of higher education.
[(4) Disclaimer.--Each calculation of estimated
tuition and fees made using the multi-year tuition
calculator described in paragraph (1) shall be
accompanied by a clear and conspicuous notice--
[(A) stating that the calculation--
[(i) is only an estimate and not a
guarantee of the actual amount the
student may be charged;
[(ii) is not binding on the
Secretary, the institution of higher
education, or the State; and
[(iii) may change, subject to the
availability of financial assistance,
State appropriations, and other
factors;
[(B) stating that the student must complete
the Free Application for Federal Student Aid
described in section 483 in order to be
eligible for, and receive, an actual financial
aid award that includes Federal grant, loan, or
work-study assistance under title IV; and
[(C) including a link to the website of the
Department that allows students to access the
Free Application for Federal Student Aid
described in section 483.]
(a) Definitions.--In this section:
(1) College scorecard website.--The term ``College
Scorecard website'' means the College Scorecard website
required under subsection (b) and includes any
successor website.
(2) Cost of attendance.--The term ``cost of
attendance'' has the meaning given such term in section
472(a).
(3) Required costs.--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--
(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).
(4) Amount of grant and scholarship aid.--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--
(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.
(5) Net price required for completion.--
(A) Total net price required for
completion.--The 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.
(B) Annual net price required for
completion.--The 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.
(6) Net price of attendance.--
(A) Total net price of attendance.--The 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 time to
credential, of all the costs listed in
section 472(a) that are not required
costs.
(B) Annual net price of attendance.--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 the
student's time to credential.
(7) Program length.--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.
(8) Time to credential.--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.
(b) Consumer Information.--
(1) Availability of information for title iv
institutions and programs.--Not later than 18 months
after the effective date of this subsection, the
Secretary shall make publicly available on the College
Scorecard website the following information with
respect to students of the institution who have
received Federal financial assistance described in
paragraph (2)(I), for the most recent award year for
which such information is available:
(A) Institutions.--With respect to each
institution of higher education that
participates in a program under title IV, the
following:
(i) A link to the website of the
institution.
(ii) A link to the Universal Net
Price calculator described in
subsection (c) and, if applicable, a
link to any net price calculator
developed by the institution in
accordance with paragraph (7) of such
subsection.
(iii) Information on the type of
institution, including predominant and
highest credential awarded, research
intensity, and programs of study
offered.
(iv) In the case of an institution
that requires scores for a college
entrance examination (such as the SAT
or ACT) to be submitted, data on such
submitted scores.
(v) The acceptance rate, determined
by calculating the percentage of
individuals who submitted a completed
application to the institution who were
accepted for enrollment.
(vi) The institution's cohort default
rate, as defined under section 435(m).
(vii) A link to the website of the
institution containing the information
on campus safety required to be
collected under section 485(i).
(B) Institutions and programs of study.--With
respect to each such institution and to each
program of study at each such institution, the
following:
(i) The geographic location.
(ii) Information on student
enrollment, including the number and
percentage of students enrolled full-
time, less than full-time, and enrolled
in distance education.
(iii) Information on the number of
degree- or certificate-seeking
undergraduate students who have
transferred from another institution.
(iv) Information on student
progression and completion, including
time to credential and rates of
withdrawal, retention, transfer, or
completion.
(v) Information on college costs and
financial aid, including--
(I) the average, median,
minimum, and maximum values
of--
(aa) the required
costs for such award
year (determined for an
institution based on
the required costs for
all programs of study);
(bb) the cost of
attendance for such
award year (determined
for an institution
based on the cost of
attendance for all
programs of study);
(cc) the amount of
grant and scholarship
aid received by
students for such award
year (determined for an
institution based on
the amount of grant and
scholarship aid
received by students
for all programs of
study);
(dd) the information
described in item (cc)
and subclause (II)(cc),
disaggregated--
(AA) by the
type of source
described in
subparagraphs
(A) through (E)
of subsection
(a)(4); and
(BB) by
whether such
aid is need-
based, merit-
based, or
athletic-based,
or is another
type of aid;
(II) with respect to students
who completed a credential
during the most recent award
year, the average, median,
minimum, and maximum values
of--
(aa) the program
length (determined for
an institution based on
the program length for
all programs of study);
(bb) the time to
credential (determined
for an institution
based on the time to
credential for all
programs of study);
(cc) the amount of
grant and scholarship
aid received for the
time to credential
(determined for an
institution based on
the amount of grant and
scholarship aid
received by students
for all programs of
study);
(dd) the total net
price required for
completion (determined
for an institution
based on the total net
price required for
completion for all
programs of study); and
(ee) the total net
price required for
attendance (determined
for an institution
based on the total net
price required for
attendance for all
programs of study);
(III) the number and
percentage of students
receiving any amount of grant
and scholarship aid for such
award year, and with respect to
students who completed a
credential during the most
recent award year, the number
and percentage of such students
receiving any amount of grant
and scholarship aid for the
time to credential;
(IV) the average annual
percentage change and average
annual dollar change in the
required costs for each of the
three most recent academic
years for which data are
available; and
(V) the average annual
percentage change and average
annual dollar change in the
total and annual net price
required for completion for
each of the three most recent
academic years for which data
are available.
(vi) Information on student debt and
repayment, including--
(I) the average, median,
minimum, and maximum amounts
borrowed by students under
title IV;
(II) information with respect
to repayment of loans made
under title IV, including
borrower-based repayment rates,
dollar-based repayment rates,
and time spent in repayment;
and
(III) the number and
percentage of students who--
(aa) are borrowers of
a loan made under title
IV;
(bb) are not
borrowers of a loan
made under title IV,
but have at least one
parent who is a
borrower of a loan made
under title IV on
behalf of the student;
and
(cc) are borrowers of
a loan made under title
IV, and have at least
one parent who is a
borrower of a loan made
under title IV on
behalf of the student.
(vii) Information on the earnings of
students, including the average,
median, minimum, and maximum values
of--
(I) with respect to students
who complete a program of study
in the most recent award year
for which data are available--
(aa) the annual
earnings of such
students; and
(bb) the value-added
earnings (as defined in
section
481(b)(3)(A)(iv)) of
such students; and
(II) the annual earnings of
students who were enrolled in a
program of study at the
institution during the most
recent award year for which
data are available, and who at
the time the information is
reported--
(aa) have not
completed such program
of study; and
(bb) are not enrolled
at the institution in
any program of study.
(C) Programs of study.--With respect to each
program of study at each such institution, the
credential awarded for completion of the
program of study.
(2) Disaggregated information.--The Secretary shall
ensure the information described in paragraph (1) is
disaggregated, as applicable, by the following student
characteristics:
(A) Financial circumstances including--
(i) household income categories, as
determined by students' and families'
adjusted gross income; and
(ii) student aid index categories, as
determined by the Secretary.
(B) Sex.
(C) Race and ethnicity.
(D) Classification as a student with a
disability.
(E) Enrollment status, including part-time or
full-time enrollment, and status as a distance
education student.
(F) Status as a first year, second year,
third year, or subsequent year student, based
on the number of years a student has been
enrolled at the institution or in the program
of study, as applicable.
(G) Status as an in-district, in-State, or
out-of-State student.
(H) Status as an international student.
(I) The type of Federal financial assistance
received, including--
(i) a Pell Grant;
(ii) a loan made under title IV; and
(iii) assistance described in section
131(f)(4) administered, sponsored, or
supported by the Department of Defense
or the Department of Veterans Affairs.
(J) Status as a participant in a program
described in section 116(b)(3)(A)(ii) of the
Workforce Innovation and Opportunity Act (29
U.S.C. 3141(b)(3)(A)(ii)).
(3) Comparisons; access; privacy.--The Secretary
shall ensure that the College Scorecard website--
(A) includes a method for users to easily
compare institutions and programs, including in
a manner that allows for such comparison based
on--
(i) the institutional and program
information described in paragraph (1);
and
(ii) the student characteristics
described in paragraph (2);
(B) provides access to information in an
electronic and downloadable format; and
(C) complies with applicable Federal privacy
statutes and uses appropriate statistical
disclosure limitation techniques necessary to
ensure that the data released to the public
cannot be used to identify specific
individuals, including with respect to
disaggregated information under paragraph (2).
(4) Annual updates; adjustments.--
(A) Annual data.--The Secretary shall
annually update the data on the College
Scorecard website required under this
subsection.
(B) Adjustments.--The Secretary may adjust
the data required under subclauses (IV) and (V)
of paragraph (1)(B)(v) using the Consumer Price
Index if the Secretary determines such
adjustment is necessary.
(5) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the
Integrated Postsecondary Education Data System
(referred to in this section as ``IPEDS''), including
the reporting of information by institutions and the
timeliness of the data collected.
(c) Universal Net Price Calculator.--
(1) Establishment.--Not later than 18 months after
the effective date of this subsection, the Secretary
shall establish, on a dedicated website of the
Department, a Universal Net Price Calculator that--
(A) allows an individual to select one or
more institutions of higher education and one
or more programs of study offered by each
selected institution for which estimates shall
be calculated;
(B) makes available to the individual, with
respect to each selected institution and each
selected program of study, the individual's--
(i) annual estimated net price
required for completion for each year
of expected enrollment based on the
program length of a program of study,
based on the average annual net price
required for completion for similarly
situated students (based on the
individual's information described in
subparagraph (C)(iv)) for such
institution or program for the most
recent award year, adjusted in
accordance with clauses (i) through
(iii) of subparagraph (C);
(ii) total estimated net price
required for completion equal to the
sum of the annual estimated net price
required for completion for each year
described in clause (i);
(iii) annual estimated net price of
attendance for each year of expected
enrollment based on the program length
of a program of study, based on the
average annual net price of attendance
for similarly situated students (based
on the individual's information
described in subparagraph (C)(iv)) for
such institution or program for the
most recent award year, adjusted in
accordance with clauses (i) through
(iii) of subparagraph (C); and
(iv) total estimated net price of
attendance equal to the sum of the
annual estimated net price of
attendance for each year described in
clause (iii);
(C) with respect to calculating net price
estimates as required by subparagraph (B)--
(i) determines an estimated annual
percentage change for each year for
which a net price calculation is made,
based on the annual percentage change
in an institution's or program's
required costs and other costs under
section 472(a), as applicable, for the
most recent three-year period for which
such data are reported;
(ii) provides the individual with the
option to replace the estimated annual
percentage change described in clause
(i) with an alternative annual
percentage change specified by the
individual;
(iii) in the case of an institution
that offers a multi-year tuition or net
price guarantee program, allow the
individual to have net price estimates
calculated based on the provisions of
such guarantee program; and
(iv) uses the individual's
information, based on--
(I) the single set of
questions developed by the
Secretary in accordance with
paragraph (2);
(II) the student-level data
elements reported by
institutions in accordance with
section 668.408 of title 34,
Code of Federal Regulations (or
successor regulations);
(III) in the case of an
individual who submits a Free
Application for Federal Student
Aid described in section 483,
the contents of such
application; and
(IV) any additional
information provided by the
individual with respect to the
individual's grant and
scholarship aid;
(D) includes a method for users to easily
compare institutions and programs; and
(E) provides access to information in an
electronic and downloadable format.
(2) Development of input questions.--The Secretary
shall develop a single set of questions for purposes of
capturing the information specified in subsection
(b)(2).
(3) Updates.--
(A) Data.--The Secretary shall update the
data on the Universal Net Price Calculator
Website, as required under this subsection, not
less than annually.
(B) Technology and format.--The Secretary
shall regularly assess the format and
technology of the Universal Net Price
Calculator website and make any changes or
updates that the Secretary considers
appropriate.
(4) Integration with other federal financial aid
resources.--In accordance with subsection (d)(5) of
section 483, the Secretary shall ensure that a website
link or other means of accessing the Universal Net
Price Calculator is included on the FAFSA website (or
similar successor website).
(5) Interagency coordination.--The Secretary, in
consultation with each appropriate head of a department
or agency of the Federal Government, shall ensure, to
the greatest extent practicable, that any information
related to higher education that is published by such
department or agency is consistent with the information
published on the Universal Net Price Calculator
website.
(6) Consumer testing.--In developing and maintaining
the College Scorecard website and the Universal Net
Price Calculator website, the Secretary, in
consultation with each appropriate head of each
appropriate department and agency of the Federal
Government shall--
(A) not later than 6 months after the date of
the effective date of this subsection, and not
less than once every 4 years thereafter,
conduct consumer testing with appropriate
persons, including current and prospective
college students, family members of such
students, institutions of higher education, and
experts, to--
(i) improve the usefulness and
relevance of the College Scorecard
website, with respect to the
presentation of the consumer
information collected pursuant to
subsection (b); and
(ii) ensure that the Universal Net
Price Calculator website is usable and
easily understandable and provides
useful and relevant information to
students and families; and
(B) display prominently on such websites in
simple, understandable, and unbiased terms for
the most recent academic year for which
satisfactory data is available, the categories
of information described in paragraphs (1) and
(2) of subsection (b) and paragraph (1)(B) of
this subsection that were determined to be
useful and relevant to students and families
based on the consumer testing described in
subparagraph (A).
(7) Use of net price calculator by institutions.--Not
later than two years after the date on which the
Secretary makes the calculator developed under
paragraph (1) available to institutions of higher
education, each institution of higher education that
receives Federal funds under title IV shall make
publicly available on the institution's website a net
price calculator to provide to current and prospective
students, families, and other consumers a student's
individual net price estimates at such institution of
higher education. Such calculator may be a net price
calculator developed--
(A) by the Department pursuant to paragraph
(1); or
(B) by the institution of higher education,
if the institution's calculator includes, at a
minimum, the same data elements included in the
calculator developed under paragraph (1).
(8) Notice.--A net price estimate calculated for an
individual using the Universal Net Price Calculator
under this subsection shall be accompanied by a clear
and conspicuous notice--
(A) stating that the estimate--
(i) does not represent a final
determination, or actual award, of
financial assistance;
(ii) shall not be binding on the
Secretary, an institution of higher
education, or a State; and
(iii) may change;
(B) stating that an individual must complete
the Free Application for Federal Student Aid
described in section 483 in order to be
eligible for, and receive, an actual financial
aid award that includes Federal grant, loan, or
work-study assistance under title IV;
(C) including a link to the website of the
Department that allows individuals to access
the Free Application for Federal Student Aid
described in section 483; and
(D) explaining that the net price estimate
calculated for an individual using the
Universal Net Price Calculator under this
subsection may differ from the net price
calculated for such individual using an
institution's net price calculator due to
differences in data or methodology.
[(k)] (d) Student Aid Recipient Survey.--
(1) Survey required.--The Secretary, acting through
the Commissioner for Education Statistics, shall
conduct, on a State-by-State basis, a survey of
recipients of Federal student financial aid under title
IV--
(A) to identify the population of students
receiving such Federal student financial aid;
(B) to describe the income distribution and
other socioeconomic characteristics of
recipients of such Federal student financial
aid;
(C) to describe the combinations of aid from
Federal, State, and private sources received by
such recipients from all income categories;
(D) to describe the--
(i) debt burden of such loan
recipients, and their capacity to repay
their education debts; and
(ii) the impact of such debt burden
on the recipients' course of study and
post-graduation plans;
(E) to describe the impact of the cost of
attendance of postsecondary education in the
determination by students of what institution
of higher education to attend; and
(F) to describe how the costs of textbooks
and other instructional materials affect the
costs of postsecondary education for students.
(2) Frequency.--The survey shall be conducted on a
regular cycle and not less often than once every four
years.
(3) Survey design.--The survey shall be
representative of students from all types of
institutions, including full-time and part-time
students, undergraduate, graduate, and professional
students, and current and former students.
(4) Dissemination.--The Commissioner for Education
Statistics shall disseminate to the public, in printed
and electronic form, the information resulting from the
survey.
[(l)] (e) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out this section.
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
* * * * * * *
PART F--NEED ANALYSIS
* * * * * * *
SEC. 472. COST OF ATTENDANCE.
(a) In General.--For the purpose of this title, the term
``cost of attendance'' means--
(1) tuition and fees normally assessed a student
[carrying the same academic workload] enrolled in the
same program of study and carrying the same academic
workload as determined by the institution;
(2) an allowance for books, course materials,
supplies, and equipment, which shall include all such
costs required of all such students in the [same course
of study] same program of study, including a reasonable
allowance for the documented rental or upfront purchase
of a personal computer, as determined by the
institution;
(3) an allowance for transportation, which may
include transportation between campus, residences, and
place of work, as determined by the institution;
(4) an allowance for miscellaneous personal expenses,
for a student attending the institution on at least a
half-time basis, as determined by the institution;
(5) an allowance for living expenses, including food
and housing costs, to be incurred by the student
attending the institution on at least a half-time
basis, as determined by the institution, which shall
include--
(A) for a student electing institutionally
owned or operated food services, such as board
or meal plans, a standard allowance for such
services that provides the equivalent of three
meals each day;
(B) for a student not electing
institutionally owned or operated food
services, such as board or meal plans, a
standard allowance for purchasing food off
campus that provides the equivalent of three
meals each day;
(C) for a student without dependents residing
in institutionally owned or operated housing, a
standard allowance determined by the
institution based on the average or median
amount assessed to such residents for housing
charges, whichever is greater;
(D) for a student with dependents residing in
institutionally owned or operated housing, a
standard allowance determined by the
institution based on the average or median
amount assessed to such residents for housing
charges, whichever is greater;
(E) for a student living off campus, and not
in institutionally owned or operated housing, a
standard allowance for rent or other housing
costs;
(F) for a dependent student residing at home
with parents, a standard allowance that shall
not be zero determined by the institution;
(G) for a student living in housing located
on a military base or for which a basic
allowance is provided under section 403(b) of
title 37, United States Code, a standard
allowance for food based upon such student's
choice of purchasing food on-campus or off-
campus (determined respectively in accordance
with subparagraph (A) or (B)), but not for
housing costs; and
(H) for all other students, an allowance
based on the expenses reasonably incurred by
such students for housing and food;
(6) for a student engaged in a program of study by
correspondence, only tuition and fees and, if required,
books and supplies, travel, and housing and food costs
incurred specifically in fulfilling a required period
of residential training;
(7) for a confined or incarcerated student, only
tuition, fees, books, course materials, supplies,
equipment, and the cost of obtaining a license,
certification, or a first professional credential in
accordance with paragraph (14);
(8) for a student enrolled in an academic program in
a program of study abroad approved for credit by the
student's home institution, reasonable costs associated
with such study (as determined by the institution at
which such student is enrolled);
(9) for a student with one or more dependents, an
allowance based on the estimated actual expenses
incurred for such dependent care, based on the number
and age of such dependents, except that--
(A) such allowance shall not exceed the
reasonable cost in the community in which such
student resides for the kind of care provided;
and
(B) the period for which dependent care is
required includes, but is not limited to,
class-time, study-time, field work,
internships, and commuting time;
(10) for a student with a disability, an allowance
(as determined by the institution) for those expenses
related to the student's disability, including special
services, personal assistance, transportation,
equipment, and supplies that are reasonably incurred
and not provided for by other assisting agencies;
(11) for a student receiving all or part of the
student's instruction by means of telecommunications
technology, no distinction shall be made with respect
to the mode of instruction in determining costs;
(12) for a student engaged in a work experience under
a cooperative education program, an allowance for
reasonable costs associated with such employment (as
determined by the institution);
(13) for a student who receives a Federal student
loan made under this title or any other Federal law, to
cover a student's cost of attendance at the
institution, an allowance for the actual cost of any
loan fee, origination fee, or insurance premium charged
to such student or the parent of such student on such
loan, or the average cost of any such fee or premium,
as applicable; and
(14) for a student in a [program] program of study
requiring professional licensure, certification, or a
first professional credential, the cost of obtaining
the license, certification, or a first professional
credential.
(b) Special Rule for Living Expenses for Less-than-half-time
Students.--For students attending an institution of higher
education less than half-time, an institution of higher
education may include an allowance for living expenses,
including food and housing costs in accordance with subsection
(a)(4) for up to three semesters, or the equivalent, with no
more than two semesters being consecutive.
(c) Disclosure of Cost of Attendance Elements.--Each
institution shall make publicly available on the institution's
website a list of all the elements of cost of attendance of
each program of study at the institution described in
paragraphs (1) through (14) of subsection (a), and shall
disclose such elements on any portion of the website describing
tuition and fees [of the institution] of such programs of study
at the institution.
* * * * * * *
Part G--General Provisions Relating to Student
Assistance Programs
* * * * * * *
SEC. 485E. EARLY AWARENESS AND OUTREACH OF FINANCIAL AID ELIGIBILITY.
(a) In General.--The Secretary shall implement early outreach
activities in order to provide prospective students and their
families with information about financial aid and estimates of
financial aid. Such early outreach activities shall include the
activities described in subsections (b), (c), and (d).
(b) Pell Grant Early Awareness Estimates.--
(1) In general.--The Secretary shall produce a
consumer-tested method of estimating student
eligibility for Federal Pell Grants under section
401(b) utilizing the variables of family size and
adjusted gross income, presented in electronic format.
There shall be a method for students to indicate
whether they are, or will be in--
(A) a single-parent household;
(B) a household with two parents; or
(C) a household with no children or
dependents.
(2) Consumer testing.--
(A) In general.--The method of estimating
eligibility described in paragraph (1) shall be
consumer tested with prospective first-
generation students and families as well as
low-income individuals and families.
(B) Updates.--For award year 2024-2025 and
each fourth succeeding award year thereafter,
the design of the method of estimating
eligibility shall be updated based on
additional consumer testing with the
populations described in subparagraph (A).
(3) Distribution.--The method of estimating
eligibility described in paragraph (1) shall be--
(A) made publicly and prominently available
on the Department's website; and
(B) actively shared by the Secretary with--
(i) institutions of higher education
participating in programs under this
title;
(ii) all middle and secondary schools
eligible for funds under part A of
title I of the Elementary and Secondary
Education Act of 1965;
(iii) local educational agencies and
middle schools and high schools that
serve students not less than 25 percent
of whom meet a measure of poverty as
described in section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965; and
(iv) agencies responsible for
administering means-tested Federal
benefit programs, as defined in section
479(b)(4)(H).
[(4) Electronic estimator on fafsa.--In accordance
with subsection (d)(5) of section 483, the Secretary
shall maintain an electronic method for applicants to
enter income and family size, and level of education
sought information to calculate a non-binding estimate
(which may include a range, ceiling, or minimum) of the
applicant's Federal financial aid available under this
title and shall place such calculator on a prominent
location on the FAFSA website and in a manner that
encourages students to fill out the FAFSA.]
(c) Early Awareness Plans.--The Secretary shall establish and
implement early awareness and outreach plans to provide early
information about the availability of Federal financial aid and
estimates of prospective students' eligibility for Federal
financial aid as well as to promote the attainment of
postsecondary education specifically among prospective first-
generation students and families as well as low-income
individuals and families, as follows:
(1) Outreach plans for low-income families.--
(A) In general.--The Secretary shall develop
plans for each population described in this
subparagraph to disseminate information about
the availability of Federal financial aid under
this title, in addition to and in coordination
with the distribution of the method of
estimating eligibility under subsection (b),
to--
(i) all middle schools and secondary
schools eligible for funds under part A
of title I of the Elementary and
Secondary Education Act of 1965;
(ii) local educational agencies and
middle schools and high schools that
serve students not less than 25 percent
of whom meet a measure of poverty as
described in section 1113(a)(5) of the
Elementary and Secondary Education Act;
(iii) households receiving assistance
under the supplemental nutrition
assistance program established under
the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.); and
(iv) agencies responsible for
administering means-tested Federal
benefit programs, as defined in section
479(b)(4)(H).
(B) Content of plans.--The plans described in
paragraph (A) shall--
(i) provide students and their
families with information on--
(I) the availability of the
College Scorecard or any
similar successor website;
(II) the electronic estimates
of financial aid available
under subsection (b);
(III) Federal financial aid
available to students,
including eligibility criteria
for the Federal financial aid
and an explanation of the
Federal financial aid programs
(including applicable Federal
educational tax credits); and
(IV) resources that can
inform students of financial
aid that may be available from
state-based financial aid,
state-based college savings
programs, and scholarships and
other non-governmental sources;
(ii) describe how the dissemination
of information will be conducted by the
Secretary.
(C) Reporting and updates.--The Secretary
shall post the information about the plans
under subparagraph (A) and associated goals
publicly on the Department's website. On an
annual basis, the Secretary shall report
qualitative and quantitative outcomes regarding
the implementation of the plans under
subparagraph (A). The Secretary shall review
and update such plans not less often than every
4 award years with the goal of progressively
increasing the impact of the activities under
this paragraph.
(D) Partnership.--The Secretary may partner
with States, State systems of higher education,
institutions of higher education, or college
access organizations to carry out this
paragraph.
(2) Interagency coordination plans.--
(A) In general.--The Secretary shall develop
interagency coordination plans in order to
inform more students and families, including
low-income individuals or families and
recipients of means-tested Federal benefits,
about the availability of Federal financial aid
under this title through participation in
existing Federal programs or tax benefits that
serve low-income individuals or families, in
coordination with the following Secretaries:
(i) The Secretary of the Treasury.
(ii) The Secretary of Labor.
(iii) The Secretary of Health and
Human Services.
(iv) The Secretary of Agriculture.
(v) The Secretary of Housing and
Urban Development.
(vi) The Secretary of Commerce.
(vii) The Secretary of Veterans
Affairs.
(viii) The Secretary of the Interior.
(B) Process, activities, and goals.--Each
interagency coordination plan under
subparagraph (A) shall--
(i) identify opportunities in which
low-income individuals and families
could be informed of the availability
of Federal financial aid under this
title through access to other Federal
programs that serve low-income
individuals and families;
(ii) identify methods to effectively
inform low-income individuals and
families of the availability of Federal
financial aid for postsecondary
education under this title and assist
such individuals in completing the Free
Application for Federal Student Aid;
(iii) develop early awareness and
FAFSA completion activities that align
with the opportunities and methods
identified under clauses (i) and (ii);
(iv) establish goals regarding the
effects of the activities to be
implemented under clause (iii); and
(v) provide information on how
students and families can maintain
access to Federal programs that serve
low-income individuals and families
operated by the agencies identified
under subsection (A) while attending an
institution of higher education.
(C) Plan with secretary of the treasury.--The
interagency coordination plan under
subparagraph (A)(i) between the Secretary and
the Secretary of the Treasury shall further
include specific methods to increase the
application for Federal financial aid under
this title from individuals who file Federal
tax returns, including collaboration with tax
preparation entities or other third parties, as
appropriate.
(D) Reporting and updates.--The Secretary
shall post the information about the
interagency coordination plans under this
paragraph and associated goals publicly on the
Department's website. The plans shall have the
goal of progressively increasing the impact of
the activities under this paragraph by
increasing the number of low-income applicants
for, and recipients of, Federal financial aid.
The plans shall be updated not less than once
every 4 years.
(3) Nationwide participation in early awareness
plans.--
(A) In general.--The Secretary shall solicit
voluntary public commitments from entities,
such as States, State systems of higher
education, institutions of higher education,
and other interested organizations, to carry
out early awareness plans, which shall include
goals, to--
(i) notify prospective and existing
students who are low-income individuals
and families about their eligibility
for Federal aid under this title, as
well as State-based financial aid, if
applicable, on an annual basis;
(ii) increase the number of
prospective and current students who
are low-income individuals and families
filing the Free Application for Federal
Student Aid; and
(iii) increase the number of
prospective and current students who
are low-income individuals and families
enrolling in postsecondary education.
(B) Reporting and updates.--Each entity that
makes a voluntary public commitment to carry
out an early awareness plan may submit
quantitative and qualitative data based on the
entity's progress toward the goals of the plan
annually prior to a date selected by the
Secretary.
(C) Early awareness champions.--Based on data
submitted by entities, the Secretary shall
select and designate entities submitting public
commitments, plans, and goals, as Early
Awareness Champions on an annual basis. Those
entities designated as Early Awareness
Champions shall provide one or more case
studies regarding the activities the entity
undertook under this paragraph which shall be
made public by the Secretary on the Department
of Education website to promote best practices.
(d) Public Awareness Campaign.--
(1) In general.--The Secretary shall develop and
implement a public awareness campaign designed using
current and relevant independent research regarding
strategies and media platforms found to be most
effective in communicating with low-income populations
in order to increase national awareness regarding the
availability of Federal Pell Grants and financial aid
under this title and, at the option of the Secretary,
potential availability of state need-based financial
aid.
(2) Coordination.--The public awareness campaign
described in paragraph (1) shall leverage the
activities in subsections (b) and (c) to highlight
eligibility among low-income populations. In developing
and implementing the campaign, the Secretary may work
in coordination with States, institutions of higher
education, early intervention and outreach programs
under this title, other Federal agencies, agencies
responsible for administering means-tested Federal
benefit programs (as defined in section 479(b)(4)(H)),
organizations involved in college access and student
financial aid, secondary schools, local educational
agencies, public libraries, community centers,
businesses, employers, workforce investment boards, and
organizations that provide services to individuals who
are or were homeless, in foster care, or are
disconnected youth.
(3) Reporting.--The Secretary shall report on the
success of the public awareness campaign described in
paragraph (1) annually regarding the extent to which
the public and target populations were reached using
data commonly used to evaluate advertising and outreach
campaigns and data regarding whether the campaign
produced any increase in applicants for Federal aid
under this title publicly on the Department of
Education website.
* * * * * * *
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required for Programs of Assistance; Contents.--In order
to be an eligible institution for the purposes of any program
authorized under this title, an institution must be an
institution of higher education or an eligible institution (as
that term is defined for the purpose of that program) and
shall, except with respect to a program under subpart 4 of part
A, enter into a program participation agreement with the
Secretary. The agreement shall condition the initial and
continuing eligibility of an institution to participate in a
program upon compliance with the following requirements:
(1) The institution will use funds received by it for
any program under this title and any interest or other
earnings thereon solely for the purpose specified in
and in accordance with the provision of that program.
(2) The institution shall not charge any student a
fee for processing or handling any application, form,
or data required to determine the student's eligibility
for assistance under this title or the amount of such
assistance.
(3) The institution will establish and maintain such
administrative and fiscal procedures and records as may
be necessary to ensure proper and efficient
administration of funds received from the Secretary or
from students under this title, together with
assurances that the institution will provide, upon
request and in a timely fashion, information relating
to the administrative capability and financial
responsibility of the institution to--
(A) the Secretary;
(B) the appropriate guaranty agency; and
(C) the appropriate accrediting agency or
association.
(4) The institution will comply with the provisions
of subsection (c) of this section and the regulations
prescribed under that subsection, relating to fiscal
eligibility.
(5) The institution will submit reports to the
Secretary and, in the case of an institution
participating in a program under part B or part E, to
holders of loans made to the institution's students
under such parts at such times and containing such
information as the Secretary may reasonably require to
carry out the purpose of this title.
(6) The institution will not provide any student with
any statement or certification to any lender under part
B that qualifies the student for a loan or loans in
excess of the amount that student is eligible to borrow
in accordance with sections 425(a), 428(a)(2), and
428(b)(1) (A) and (B).
(7) The institution will comply with the requirements
of section 485.
(8) In the case of an institution that advertises job
placement rates as a means of attracting students to
enroll in the institution, the institution will make
available to prospective students, at or before the
time of application (A) the most recent available data
concerning employment statistics, graduation
statistics, and any other information necessary to
substantiate the truthfulness of the advertisements,
and (B) relevant State licensing requirements of the
State in which such institution is located for any job
for which the course of instruction is designed to
prepare such prospective students.
(9) In the case of an institution participating in a
program under part B or D, the institution will inform
all eligible borrowers enrolled in the institution
about the availability and eligibility of such
borrowers for State grant assistance from the State in
which the institution is located, and will inform such
borrowers from another State of the source for further
information concerning such assistance from that State.
(10) The institution certifies that it has in
operation a drug abuse prevention program that is
determined by the institution to be accessible to any
officer, employee, or student at the institution.
(11) In the case of any institution whose students
receive financial assistance pursuant to section
484(d), the institution will make available to such
students a program proven successful in assisting
students in obtaining a certificate of high school
equivalency.
(12) The institution certifies that--
(A) the institution has established a campus
security policy; and
(B) the institution has complied with the
disclosure requirements of section 485(f).
(13) The institution will not deny any form of
Federal financial aid to any student who meets the
eligibility requirements of this title on the grounds
that the student is participating in a program of study
abroad approved for credit by the institution.
(14)(A) The institution, in order to participate as
an eligible institution under part B or D, will develop
a Default Management Plan for approval by the Secretary
as part of its initial application for certification as
an eligible institution and will implement such Plan
for two years thereafter.
(B) Any institution of higher education which changes
ownership and any eligible institution which changes
its status as a parent or subordinate institution
shall, in order to participate as an eligible
institution under part B or D, develop a Default
Management Plan for approval by the Secretary and
implement such Plan for two years after its change of
ownership or status.
(C) This paragraph shall not apply in the case of an
institution in which (i) neither the parent nor the
subordinate institution has a cohort default rate in
excess of 10 percent, and (ii) the new owner of such
parent or subordinate institution does not, and has
not, owned any other institution with a cohort default
rate in excess of 10 percent.
(15) The institution acknowledges the authority of
the Secretary, guaranty agencies, lenders, accrediting
agencies, the Secretary of Veterans Affairs, and the
State agencies under subpart 1 of part H to share with
each other any information pertaining to the
institution's eligibility to participate in programs
under this title or any information on fraud and abuse.
(16)(A) The institution will not knowingly employ an
individual in a capacity that involves the
administration of programs under this title, or the
receipt of program funds under this title, who has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of funds under this title, or has been judicially
determined to have committed fraud involving funds
under this title or contract with an institution or
third party servicer that has been terminated under
section 432 involving the acquisition, use, or
expenditure of funds under this title, or who has been
judicially determined to have committed fraud involving
funds under this title.
(B) The institution will not knowingly contract with
or employ any individual, agency, or organization that
has been, or whose officers or employees have been--
(i) convicted of, or pled nolo contendere or
guilty to, a crime involving the acquisition,
use, or expenditure of funds under this title;
or
(ii) judicially determined to have committed
fraud involving funds under this title.
(17) The institution will complete surveys conducted
as a part of the Integrated Postsecondary Education
Data System (IPEDS) or any other Federal postsecondary
institution data collection effort, as designated by
the Secretary, in a timely manner and to the
satisfaction of the Secretary.
(18) The institution will meet the requirements
established pursuant to section 485(g).
(19) The institution will not impose any penalty,
including the assessment of late fees, the denial of
access to classes, libraries, or other institutional
facilities, or the requirement that the student borrow
additional funds, on any student because of the
student's inability to meet his or her financial
obligations to the institution as a result of the
delayed disbursement of the proceeds of a loan made
under this title due to compliance with the provisions
of this title, or delays attributable to the
institution.
(20) The institution will not provide any commission,
bonus, or other incentive payment based directly or
indirectly on success in securing enrollments or
financial aid to any persons or entities engaged in any
student recruiting or admission activities or in making
decisions regarding the award of student financial
assistance, except that this paragraph shall not apply
to the recruitment of foreign students residing in
foreign countries who are not eligible to receive
Federal student assistance.
(21) The institution will meet the requirements
established by the Secretary and accrediting agencies
or associations, and will provide evidence to the
Secretary that the institution has the authority to
operate within a State.
(22) The institution will comply with the refund
policy established pursuant to section 484B.
(23)(A) The institution, if located in a State to
which section 4(b) of the National Voter Registration
Act of 1993 (42 U.S.C. 1973gg-2(b)) does not apply,
will make a good faith effort to distribute a mail
voter registration form, requested and received from
the State, to each student enrolled in a degree or
certificate program and physically in attendance at the
institution, and to make such forms widely available to
students at the institution.
(B) The institution shall request the forms from the
State 120 days prior to the deadline for registering to
vote within the State. If an institution has not
received a sufficient quantity of forms to fulfill this
section from the State within 60 days prior to the
deadline for registering to vote in the State, the
institution shall not be held liable for not meeting
the requirements of this section during that election
year.
(C) This paragraph shall apply to general and special
elections for Federal office, as defined in section
301(3) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(3)), and to the elections for Governor or
other chief executive within such State).
(D) The institution shall be considered in
compliance with the requirements of
subparagraph (A) for each student to whom the
institution electronically transmits a message
containing a voter registration form acceptable
for use in the State in which the institution
is located, or an Internet address where such a
form can be downloaded, if such information is
in an electronic message devoted exclusively to
voter registration.
(24) In the case of a proprietary institution of
higher education (as defined in section 102(b)), such
institution will derive not less than ten percent of
such institution's revenues from sources other than
Federal funds that are disbursed or delivered to or on
behalf of a student to be used to attend such
institution (referred to in this paragraph and
subsection (d) as ``Federal education assistance
funds''), as calculated in accordance with subsection
(d)(1), or will be subject to the sanctions described
in subsection (d)(2).
(25) In the case of an institution that participates
in a loan program under this title, the institution
will--
(A) develop a code of conduct with respect to
such loans with which the institution's
officers, employees, and agents shall comply,
that--
(i) prohibits a conflict of interest
with the responsibilities of an
officer, employee, or agent of an
institution with respect to such loans;
and
(ii) at a minimum, includes the
provisions described in subsection (e);
(B) publish such code of conduct prominently
on the institution's website; and
(C) administer and enforce such code by, at a
minimum, requiring that all of the
institution's officers, employees, and agents
with responsibilities with respect to such
loans be annually informed of the provisions of
the code of conduct.
(26) The institution will, upon written request,
disclose to the alleged victim of any crime of violence
(as that term is defined in section 16 of title 18,
United States Code), or a nonforcible sex offense, the
report on the results of any disciplinary proceeding
conducted by such institution against a student who is
the alleged perpetrator of such crime or offense with
respect to such crime or offense. If the alleged victim
of such crime or offense is deceased as a result of
such crime or offense, the next of kin of such victim
shall be treated as the alleged victim for purposes of
this paragraph.
(27) In the case of an institution that has entered
into a preferred lender arrangement, the institution
will at least annually compile, maintain, and make
available for students attending the institution, and
the families of such students, a list, in print or
other medium, of the specific lenders for loans made,
insured, or guaranteed under this title or private
education loans that the institution recommends,
promotes, or endorses in accordance with such preferred
lender arrangement. In making such list, the
institution shall comply with the requirements of
subsection (h).
(28)(A) The institution will, upon the request of an
applicant for a private education loan, provide to the
applicant the form required under section 128(e)(3) of
the Truth in Lending Act (15 U.S.C. 1638(e)(3)), and
the information required to complete such form, to the
extent the institution possesses such information.
(B) For purposes of this paragraph, the term
``private education loan'' has the meaning given such
term in section 140 of the Truth in Lending Act.
(29) The institution certifies that the institution--
(A) has developed plans to effectively combat
the unauthorized distribution of copyrighted
material, including through the use of a
variety of technology-based deterrents; and
(B) will, to the extent practicable, offer
alternatives to illegal downloading or peer-to-
peer distribution of intellectual property, as
determined by the institution in consultation
with the chief technology officer or other
designated officer of the institution.
(b) Hearings.--(1) An institution that has received written
notice of a final audit or program review determination and
that desires to have such determination reviewed by the
Secretary shall submit to the Secretary a written request for
review not later than 45 days after receipt of notification of
the final audit or program review determination.
(2) The Secretary shall, upon receipt of written notice under
paragraph (1), arrange for a hearing and notify the institution
within 30 days of receipt of such notice the date, time, and
place of such hearing. Such hearing shall take place not later
than 120 days from the date upon which the Secretary notifies
the institution.
(c) Audits; Financial Responsibility; Enforcement of
Standards.--(1) Notwithstanding any other provisions of this
title, the Secretary shall prescribe such regulations as may be
necessary to provide for--
(A)(i) except as provided in clauses (ii) and (iii),
a financial audit of an eligible institution with
regard to the financial condition of the institution in
its entirety, and a compliance audit of such
institution with regard to any funds obtained by it
under this title or obtained from a student or a parent
who has a loan insured or guaranteed by the Secretary
under this title, on at least an annual basis and
covering the period since the most recent audit,
conducted by a qualified, independent organization or
person in accordance with standards established by the
Comptroller General for the audit of governmental
organizations, programs, and functions, and as
prescribed in regulations of the Secretary, the results
of which shall be submitted to the Secretary and shall
be available to cognizant guaranty agencies, eligible
lenders, State agencies, and the appropriate State
agency notifying the Secretary under subpart 1 of part
H, except that the Secretary may modify the
requirements of this clause with respect to
institutions of higher education that are foreign
institutions, and may waive such requirements with
respect to a foreign institution whose students receive
less than $500,000 in loans under this title during the
award year preceding the audit period;
(ii) with regard to an eligible institution which is
audited under chapter 75 of title 31, United States
Code, deeming such audit to satisfy the requirements of
clause (i) for the period covered by such audit; or
(iii) at the discretion of the Secretary, with regard
to an eligible institution (other than an eligible
institution described in section 102(a)(1)(C)) that has
obtained less than $200,000 in funds under this title
during each of the 2 award years that precede the audit
period and submits a letter of credit payable to the
Secretary equal to not less than \1/2\ of the annual
potential liabilities of such institution as determined
by the Secretary, deeming an audit conducted every 3
years to satisfy the requirements of clause (i), except
for the award year immediately preceding renewal of the
institution's eligibility under section 498(g);
(B) in matters not governed by specific program
provisions, the establishment of reasonable standards
of financial responsibility and appropriate
institutional capability for the administration by an
eligible institution of a program of student financial
aid under this title, including any matter the
Secretary deems necessary to the sound administration
of the financial aid programs, such as the pertinent
actions of any owner, shareholder, or person exercising
control over an eligible institution;
(C)(i) except as provided in clause (ii), a
compliance audit of a third party servicer (other than
with respect to the servicer's functions as a lender if
such functions are otherwise audited under this part
and such audits meet the requirements of this clause),
with regard to any contract with an eligible
institution, guaranty agency, or lender for
administering or servicing any aspect of the student
assistance programs under this title, at least once
every year and covering the period since the most
recent audit, conducted by a qualified, independent
organization or person in accordance with standards
established by the Comptroller General for the audit of
governmental organizations, programs, and functions,
and as prescribed in regulations of the Secretary, the
results of which shall be submitted to the Secretary;
or
(ii) with regard to a third party servicer that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
such audit;
(D)(i) a compliance audit of a secondary market with
regard to its transactions involving, and its servicing
and collection of, loans made under this title, at
least once a year and covering the period since the
most recent audit, conducted by a qualified,
independent organization or person in accordance with
standards established by the Comptroller General for
the audit of governmental organizations, programs, and
functions, and as prescribed in regulations of the
Secretary, the results of which shall be submitted to
the Secretary; or
(ii) with regard to a secondary market that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
the audit;
(E) the establishment, by each eligible institution
under part B responsible for furnishing to the lender
the statement required by section 428(a)(2)(A)(i), of
policies and procedures by which the latest known
address and enrollment status of any student who has
had a loan insured under this part and who has either
formally terminated his enrollment, or failed to re-
enroll on at least a half-time basis, at such
institution, shall be furnished either to the holder
(or if unknown, the insurer) of the note, not later
than 60 days after such termination or failure to re-
enroll;
(F) the limitation, suspension, or termination of the
participation in any program under this title of an
eligible institution, or the imposition of a civil
penalty under paragraph (3)(B) whenever the Secretary
has determined, after reasonable notice and opportunity
for hearing, that such institution has violated or
failed to carry out any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation, except that no period of suspension under
this section shall exceed 60 days unless the
institution and the Secretary agree to an extension or
unless limitation or termination proceedings are
initiated by the Secretary within that period of time;
(G) an emergency action against an institution, under
which the Secretary shall, effective on the date on
which a notice and statement of the basis of the action
is mailed to the institution (by registered mail,
return receipt requested), withhold funds from the
institution or its students and withdraw the
institution's authority to obligate funds under any
program under this title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the institution
is violating any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (D) for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless limitation, suspension, or termination
proceedings are initiated by the Secretary against the
institution within that period of time, and except that
the Secretary shall provide the institution an
opportunity to show cause, if it so requests, that the
emergency action is unwarranted;
(H) the limitation, suspension, or termination of the
eligibility of a third party servicer to contract with
any institution to administer any aspect of an
institution's student assistance program under this
title, or the imposition of a civil penalty under
paragraph (3)(B), whenever the Secretary has
determined, after reasonable notice and opportunity for
a hearing, that such organization, acting on behalf of
an institution, has violated or failed to carry out any
provision of this title, any regulation prescribed
under this title, or any applicable special
arrangement, agreement, or limitation, except that no
period of suspension under this subparagraph shall
exceed 60 days unless the organization and the
Secretary agree to an extension, or unless limitation
or termination proceedings are initiated by the
Secretary against the individual or organization within
that period of time; and
(I) an emergency action against a third party
servicer that has contracted with an institution to
administer any aspect of the institution's student
assistance program under this title, under which the
Secretary shall, effective on the date on which a
notice and statement of the basis of the action is
mailed to such individual or organization (by
registered mail, return receipt requested), withhold
funds from the individual or organization and withdraw
the individual or organization's authority to act on
behalf of an institution under any program under this
title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the individual
or organization, acting on behalf of an
institution, is violating any provision of this
title, any regulation prescribed under this
title, or any applicable special arrangement,
agreement, or limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (F), for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless the limitation, suspension, or termination
proceedings are initiated by the Secretary against the
individual or organization within that period of time,
and except that the Secretary shall provide the
individual or organization an opportunity to show
cause, if it so requests, that the emergency action is
unwarranted.
(2) If an individual who, or entity that, exercises
substantial control, as determined by the Secretary in
accordance with the definition of substantial control in
subpart 3 of part H, over one or more institutions
participating in any program under this title, or, for purposes
of paragraphs (1) (H) and (I), over one or more organizations
that contract with an institution to administer any aspect of
the institution's student assistance program under this title,
is determined to have committed one or more violations of the
requirements of any program under this title, or has been
suspended or debarred in accordance with the regulations of the
Secretary, the Secretary may use such determination,
suspension, or debarment as the basis for imposing an emergency
action on, or limiting, suspending, or terminating, in a single
proceeding, the participation of any or all institutions under
the substantial control of that individual or entity.
(3)(A) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution has
engaged in substantial misrepresentation of the nature of its
educational program, its financial charges, or the
employability of its graduates, the Secretary may suspend or
terminate the eligibility status for any or all programs under
this title of any otherwise eligible institution, in accordance
with procedures specified in paragraph (1)(D) of this
subsection, until the Secretary finds that such practices have
been corrected.
(B)(i) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution--
(I) has violated or failed to carry out any provision
of this title or any regulation prescribed under this
title; or
(II) has engaged in substantial misrepresentation of
the nature of its educational program, its financial
charges, and the employability of its graduates,
the Secretary may impose a civil penalty upon such institution
of not to exceed $25,000 for each violation or
misrepresentation.
(ii) Any civil penalty may be compromised by the Secretary.
In determining the amount of such penalty, or the amount agreed
upon in compromise, the appropriateness of the penalty to the
size of the institution of higher education subject to the
determination, and the gravity of the violation, failure, or
misrepresentation shall be considered. The amount of such
penalty, when finally determined, or the amount agreed upon in
compromise, may be deducted from any sums owing by the United
States to the institution charged.
(4) The Secretary shall publish a list of State agencies
which the Secretary determines to be reliable authority as to
the quality of public postsecondary vocational education in
their respective States for the purpose of determining
eligibility for all Federal student assistance programs.
(5) The Secretary shall make readily available to appropriate
guaranty agencies, eligible lenders, State agencies notifying
the Secretary under subpart 1 of part H, and accrediting
agencies or associations the results of the audits of eligible
institutions conducted pursuant to paragraph (1)(A).
(6) The Secretary is authorized to provide any information
collected as a result of audits conducted under this section,
together with audit information collected by guaranty agencies,
to any Federal or State agency having responsibilities with
respect to student financial assistance, including those
referred to in subsection (a)(15) of this section.
(7) Effective with respect to any audit conducted under this
subsection after December 31, 1988, if, in the course of
conducting any such audit, the personnel of the Department of
Education discover, or are informed of, grants or other
assistance provided by an institution in accordance with this
title for which the institution has not received funds
appropriated under this title (in the amount necessary to
provide such assistance), including funds for which
reimbursement was not requested prior to such discovery or
information, such institution shall be permitted to offset that
amount against any sums determined to be owed by the
institution pursuant to such audit, or to receive reimbursement
for that amount (if the institution does not owe any such
sums).
(d) Implementation of Non-Federal Revenue Requirement.--
(1) Calculation.--In making calculations under
subsection (a)(24), a proprietary institution of higher
education shall--
(A) use the cash basis of accounting, except
in the case of loans described in subparagraph
(D)(i) that are made by the proprietary
institution of higher education;
(B) consider as revenue only those funds
generated by the institution from--
(i) tuition, fees, and other
institutional charges for students
enrolled in programs eligible for
assistance under this title;
(ii) activities conducted by the
institution that are necessary for the
education and training of the
institution's students, if such
activities are--
(I) conducted on campus or at
a facility under the control of
the institution;
(II) performed under the
supervision of a member of the
institution's faculty; and
(III) required to be
performed by all students in a
specific educational program at
the institution; and
(iii) funds paid by a student, or on
behalf of a student by a party other
than the institution, for an education
or training program that is not
eligible for funds under this title, if
the program--
(I) is approved or licensed
by the appropriate State
agency;
(II) is accredited by an
accrediting agency recognized
by the Secretary; or
(III) provides an industry-
recognized credential or
certification;
(C) presume that any Federal education
assistance funds that are disbursed or
delivered to or on behalf of a student will be
used to pay the student's tuition, fees, or
other institutional charges, regardless of
whether the institution credits those funds to
the student's account or pays those funds
directly to the student, except to the extent
that the student's tuition, fees, or other
institutional charges are satisfied by--
(i) grant funds provided by non-
Federal public agencies or private
sources independent of the institution;
(ii) funds provided under a
contractual arrangement with a Federal,
State, or local government agency for
the purpose of providing job training
to low-income individuals who are in
need of that training;
(iii) funds used by a student from
savings plans for educational expenses
established by or on behalf of the
student and which qualify for special
tax treatment under the Internal
Revenue Code of 1986; or
(iv) institutional scholarships
described in subparagraph (D)(iii);
(D) include institutional aid as revenue to
the school only as follows:
(i) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2008 and
prior to July 1, 2012, the net present
value of such loans made by the
institution during the applicable
institutional fiscal year accounted for
on an accrual basis and estimated in
accordance with generally accepted
accounting principles and related
standards and guidance, if the loans--
(I) are bona fide as
evidenced by enforceable
promissory notes;
(II) are issued at intervals
related to the institution's
enrollment periods; and
(III) are subject to regular
loan repayments and
collections;
(ii) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2012,
only the amount of loan repayments
received during the applicable
institutional fiscal year, excluding
repayments on loans made and accounted
for as specified in clause (i); and
(iii) in the case of scholarships
provided by a proprietary institution
of higher education, only those
scholarships provided by the
institution in the form of monetary aid
or tuition discounts based upon the
academic achievements or financial need
of students, disbursed during each
fiscal year from an established
restricted account, and only to the
extent that funds in that account
represent designated funds from an
outside source or from income earned on
those funds;
(E) in the case of each student who receives
a loan on or after July 1, 2008, and prior to
July 1, 2011, that is authorized under section
428H or that is a Federal Direct Unsubsidized
Stafford Loan, treat as revenue received by the
institution from sources other than funds
received under this title, the amount by which
the disbursement of such loan received by the
institution exceeds the limit on such loan in
effect on the day before the date of enactment
of the Ensuring Continued Access to Student
Loans Act of 2008; and
(F) exclude from revenues--
(i) the amount of funds the
institution received under part C,
unless the institution used those funds
to pay a student's institutional
charges;
(ii) the amount of funds the
institution received under subpart 4 of
part A;
(iii) the amount of funds provided by
the institution as matching funds for a
program under this title;
(iv) the amount of funds provided by
the institution for a program under
this title that are required to be
refunded or returned; and
(v) the amount charged for books,
supplies, and equipment, unless the
institution includes that amount as
tuition, fees, or other institutional
charges.
(2) Sanctions.--
(A) Ineligibility.--A proprietary institution
of higher education that fails to meet a
requirement of subsection (a)(24) for two
consecutive institutional fiscal years shall be
ineligible to participate in the programs
authorized by this title for a period of not
less than two institutional fiscal years. To
regain eligibility to participate in the
programs authorized by this title, a
proprietary institution of higher education
shall demonstrate compliance with all
eligibility and certification requirements
under section 498 for a minimum of two
institutional fiscal years after the
institutional fiscal year in which the
institution became ineligible.
(B) Additional enforcement.--In addition to
such other means of enforcing the requirements
of this title as may be available to the
Secretary, if a proprietary institution of
higher education fails to meet a requirement of
subsection (a)(24) for any institutional fiscal
year, then the institution's eligibility to
participate in the programs authorized by this
title becomes provisional for the two
institutional fiscal years after the
institutional fiscal year in which the
institution failed to meet the requirement of
subsection (a)(24), except that such
provisional eligibility shall terminate--
(i) on the expiration date of the
institution's program participation
agreement under this subsection that is
in effect on the date the Secretary
determines that the institution failed
to meet the requirement of subsection
(a)(24); or
(ii) in the case that the Secretary
determines that the institution failed
to meet a requirement of subsection
(a)(24) for two consecutive
institutional fiscal years, on the date
the institution is determined
ineligible in accordance with
subparagraph (A).
(3) Publication on [college navigator] college
scorecard website.--The Secretary shall publicly
disclose on the [College Navigator] College Scorecard
website--
(A) the identity of any proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24); and
(B) the extent to which the institution
failed to meet such requirement.
(4) Report to congress.--Not later than July 1, 2009,
and July 1 of each succeeding year, the Secretary shall
submit to the authorizing committees a report that
contains, for each proprietary institution of higher
education that receives assistance under this title, as
provided in the audited financial statements submitted
to the Secretary by each institution pursuant to the
requirements of subsection (a)(24)--
(A) the amount and percentage of such
institution's revenues received from sources
under this title; and
(B) the amount and percentage of such
institution's revenues received from other
sources.
(e) Code of Conduct Requirements.--An institution of higher
education's code of conduct, as required under subsection
(a)(25), shall include the following requirements:
(1) Ban on revenue-sharing arrangements.--
(A) Prohibition.--The institution shall not
enter into any revenue-sharing arrangement with
any lender.
(B) Definition.--For purposes of this
paragraph, the term ``revenue-sharing
arrangement'' means an arrangement between an
institution and a lender under which--
(i) a lender provides or issues a
loan that is made, insured, or
guaranteed under this title to students
attending the institution or to the
families of such students; and
(ii) the institution recommends the
lender or the loan products of the
lender and in exchange, the lender pays
a fee or provides other material
benefits, including revenue or profit
sharing, to the institution, an officer
or employee of the institution, or an
agent.
(2) Gift ban.--
(A) Prohibition.--No officer or employee of
the institution who is employed in the
financial aid office of the institution or who
otherwise has responsibilities with respect to
education loans, or agent who has
responsibilities with respect to education
loans, shall solicit or accept any gift from a
lender, guarantor, or servicer of education
loans.
(B) Definition of gift.--
(i) In general.--In this paragraph,
the term ``gift'' means any gratuity,
favor, discount, entertainment,
hospitality, loan, or other item having
a monetary value of more than a de
minimus amount. The term includes a
gift of services, transportation,
lodging, or meals, whether provided in
kind, by purchase of a ticket, payment
in advance, or reimbursement after the
expense has been incurred.
(ii) Exceptions.--The term ``gift''
shall not include any of the following:
(I) Standard material,
activities, or programs on
issues related to a loan,
default aversion, default
prevention, or financial
literacy, such as a brochure, a
workshop, or training.
(II) Food, refreshments,
training, or informational
material furnished to an
officer or employee of an
institution, or to an agent, as
an integral part of a training
session that is designed to
improve the service of a
lender, guarantor, or servicer
of education loans to the
institution, if such training
contributes to the professional
development of the officer,
employee, or agent.
(III) Favorable terms,
conditions, and borrower
benefits on an education loan
provided to a student employed
by the institution if such
terms, conditions, or benefits
are comparable to those
provided to all students of the
institution.
(IV) Entrance and exit
counseling services provided to
borrowers to meet the
institution's responsibilities
for entrance and exit
counseling as required by
subsections (b) and (l) of
section 485, as long as--
(aa) the
institution's staff are
in control of the
counseling, (whether in
person or via
electronic
capabilities); and
(bb) such counseling
does not promote the
products or services of
any specific lender.
(V) Philanthropic
contributions to an institution
from a lender, servicer, or
guarantor of education loans
that are unrelated to education
loans or any contribution from
any lender, guarantor, or
servicer that is not made in
exchange for any advantage
related to education loans.
(VI) State education grants,
scholarships, or financial aid
funds administered by or on
behalf of a State.
(iii) Rule for gifts to family
members.--For purposes of this
paragraph, a gift to a family member of
an officer or employee of an
institution, to a family member of an
agent, or to any other individual based
on that individual's relationship with
the officer, employee, or agent, shall
be considered a gift to the officer,
employee, or agent if--
(I) the gift is given with
the knowledge and acquiescence
of the officer, employee, or
agent; and
(II) the officer, employee,
or agent has reason to believe
the gift was given because of
the official position of the
officer, employee, or agent.
(3) Contracting arrangements prohibited.--
(A) Prohibition.--An officer or employee who
is employed in the financial aid office of the
institution or who otherwise has
responsibilities with respect to education
loans, or an agent who has responsibilities
with respect to education loans, shall not
accept from any lender or affiliate of any
lender any fee, payment, or other financial
benefit (including the opportunity to purchase
stock) as compensation for any type of
consulting arrangement or other contract to
provide services to a lender or on behalf of a
lender relating to education loans.
(B) Exceptions.--Nothing in this subsection
shall be construed as prohibiting--
(i) an officer or employee of an
institution who is not employed in the
institution's financial aid office and
who does not otherwise have
responsibilities with respect to
education loans, or an agent who does
not have responsibilities with respect
to education loans, from performing
paid or unpaid service on a board of
directors of a lender, guarantor, or
servicer of education loans;
(ii) an officer or employee of the
institution who is not employed in the
institution's financial aid office but
who has responsibility with respect to
education loans as a result of a
position held at the institution, or an
agent who has responsibility with
respect to education loans, from
performing paid or unpaid service on a
board of directors of a lender,
guarantor, or servicer of education
loans, if the institution has a written
conflict of interest policy that
clearly sets forth that officers,
employees, or agents must recuse
themselves from participating in any
decision of the board regarding
education loans at the institution; or
(iii) an officer, employee, or
contractor of a lender, guarantor, or
servicer of education loans from
serving on a board of directors, or
serving as a trustee, of an
institution, if the institution has a
written conflict of interest policy
that the board member or trustee must
recuse themselves from any decision
regarding education loans at the
institution.
(4) Interaction with borrowers.--The institution
shall not--
(A) for any first-time borrower, assign,
through award packaging or other methods, the
borrower's loan to a particular lender; or
(B) refuse to certify, or delay certification
of, any loan based on the borrower's selection
of a particular lender or guaranty agency.
(5) Prohibition on offers of funds for private
loans.--
(A) Prohibition.--The institution shall not
request or accept from any lender any offer of
funds to be used for private education loans
(as defined in section 140 of the Truth in
Lending Act), including funds for an
opportunity pool loan, to students in exchange
for the institution providing concessions or
promises regarding providing the lender with--
(i) a specified number of loans made,
insured, or guaranteed under this
title;
(ii) a specified loan volume of such
loans; or
(iii) a preferred lender arrangement
for such loans.
(B) Definition of opportunity pool loan.--In
this paragraph, the term ``opportunity pool
loan'' means a private education loan made by a
lender to a student attending the institution
or the family member of such a student that
involves a payment, directly or indirectly, by
such institution of points, premiums,
additional interest, or financial support to
such lender for the purpose of such lender
extending credit to the student or the family.
(6) Ban on staffing assistance.--
(A) Prohibition.--The institution shall not
request or accept from any lender any
assistance with call center staffing or
financial aid office staffing.
(B) Certain assistance permitted.--Nothing in
paragraph (1) shall be construed to prohibit
the institution from requesting or accepting
assistance from a lender related to--
(i) professional development training
for financial aid administrators;
(ii) providing educational counseling
materials, financial literacy
materials, or debt management materials
to borrowers, provided that such
materials disclose to borrowers the
identification of any lender that
assisted in preparing or providing such
materials; or
(iii) staffing services on a short-
term, nonrecurring basis to assist the
institution with financial aid-related
functions during emergencies, including
State-declared or federally declared
natural disasters, federally declared
national disasters, and other localized
disasters and emergencies identified by
the Secretary.
(7) Advisory board compensation.--Any employee who is
employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other student financial
aid of the institution, and who serves on an advisory
board, commission, or group established by a lender,
guarantor, or group of lenders or guarantors, shall be
prohibited from receiving anything of value from the
lender, guarantor, or group of lenders or guarantors,
except that the employee may be reimbursed for
reasonable expenses incurred in serving on such
advisory board, commission, or group.
(f) Institutional Requirements for Teach-Outs.--
(1) In general.--In the event the Secretary initiates
the limitation, suspension, or termination of the
participation of an institution of higher education in
any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
under the authority of subsection (c)(1)(G) and its
prescribed regulations, the Secretary shall require
that institution to prepare a teach-out plan for
submission to the institution's accrediting agency or
association in compliance with section 496(c)(3), the
Secretary's regulations on teach-out plans, and the
standards of the institution's accrediting agency or
association.
(2) Teach-out plan defined.--In this subsection, the
term ``teach-out plan'' means a written plan that
provides for the equitable treatment of students if an
institution of higher education ceases to operate
before all students have completed their program of
study, and may include, if required by the
institution's accrediting agency or association, an
agreement between institutions for such a teach-out
plan.
(g) Inspector General Report on Gift Ban Violations.--The
Inspector General of the Department shall--
(1) submit an annual report to the authorizing
committees identifying all violations of an
institution's code of conduct that the Inspector
General has substantiated during the preceding year
relating to the gift ban provisions described in
subsection (e)(2); and
(2) make the report available to the public through
the Department's website.
(h) Preferred Lender List Requirements.--
(1) In general.--In compiling, maintaining, and
making available a preferred lender list as required
under subsection (a)(27), the institution will--
(A) clearly and fully disclose on such
preferred lender list--
(i) not less than the information
required to be disclosed under section
153(a)(2)(A);
(ii) why the institution has entered
into a preferred lender arrangement
with each lender on the preferred
lender list, particularly with respect
to terms and conditions or provisions
favorable to the borrower; and
(iii) that the students attending the
institution, or the families of such
students, do not have to borrow from a
lender on the preferred lender list;
(B) ensure, through the use of the list of
lender affiliates provided by the Secretary
under paragraph (2), that--
(i) there are not less than three
lenders of loans made under part B that
are not affiliates of each other
included on the preferred lender list
and, if the institution recommends,
promotes, or endorses private education
loans, there are not less than two
lenders of private education loans that
are not affiliates of each other
included on the preferred lender list;
and
(ii) the preferred lender list under
this paragraph--
(I) specifically indicates,
for each listed lender, whether
the lender is or is not an
affiliate of each other lender
on the preferred lender list;
and
(II) if a lender is an
affiliate of another lender on
the preferred lender list,
describes the details of such
affiliation;
(C) prominently disclose the method and
criteria used by the institution in selecting
lenders with which to enter into preferred
lender arrangements to ensure that such lenders
are selected on the basis of the best interests
of the borrowers, including--
(i) payment of origination or other
fees on behalf of the borrower;
(ii) highly competitive interest
rates, or other terms and conditions or
provisions of loans under this title or
private education loans;
(iii) high-quality servicing for such
loans; or
(iv) additional benefits beyond the
standard terms and conditions or
provisions for such loans;
(D) exercise a duty of care and a duty of
loyalty to compile the preferred lender list
under this paragraph without prejudice and for
the sole benefit of the students attending the
institution, or the families of such students;
(E) not deny or otherwise impede the
borrower's choice of a lender or cause
unnecessary delay in loan certification under
this title for those borrowers who choose a
lender that is not included on the preferred
lender list; and
(F) comply with such other requirements as
the Secretary may prescribe by regulation.
(2) Lender affiliates list.--
(A) In general.--The Secretary shall maintain
and regularly update a list of lender
affiliates of all eligible lenders, and shall
provide such list to institutions for use in
carrying out paragraph (1)(B).
(B) Use of most recent list.--An institution
shall use the most recent list of lender
affiliates provided by the Secretary under
subparagraph (A) in carrying out paragraph
(1)(B).
(i) Definitions.--For the purpose of this section:
(1) Agent.--The term ``agent'' has the meaning given
the term in section 151.
(2) Affiliate.--The term ``affiliate'' means a person
that controls, is controlled by, or is under common
control with another person. A person controls, is
controlled by, or is under common control with another
person if--
(A) the person directly or indirectly, or
acting through one or more others, owns,
controls, or has the power to vote five percent
or more of any class of voting securities of
such other person;
(B) the person controls, in any manner, the
election of a majority of the directors or
trustees of such other person; or
(C) the Secretary determines (after notice
and opportunity for a hearing) that the person
directly or indirectly exercises a controlling
interest over the management or policies of
such other person's education loans.
(3) Education loan.--The term ``education loan'' has
the meaning given the term in section 151.
(4) Eligible institution.--The term ``eligible
institution'' means any such institution described in
section 102 of this Act.
(5) Officer.--The term ``officer'' has the meaning
given the term in section 151.
(6) Preferred lender arrangement.--The term
``preferred lender arrangement'' has the meaning given
the term in section 151.
(j) Construction.--Nothing in the amendments made by the
Higher Education Amendments of 1992 shall be construed to
prohibit an institution from recording, at the cost of the
institution, a hearing referred to in subsection (b)(2),
subsection (c)(1)(D), or subparagraph (A) or (B)(i) of
subsection (c)(2), of this section to create a record of the
hearing, except the unavailability of a recording shall not
serve to delay the completion of the proceeding. The Secretary
shall allow the institution to use any reasonable means,
including stenographers, of recording the hearing.
* * * * * * *
MINORITY VIEWS
INTRODUCTION
As the cost of college continues to rise, increased
transparency of college costs is critical. Students and
families should have accurate, useful information to help them
navigate the college search process and ensure they are making
informed decisions. H.R. 6498, the Student Financial Clarity
Act amends the Higher Education Act of 1965 (HEA) to codify the
College Scorecard and require the Secretary of Education to
develop a Universal Net Price Calculator to help students
compare estimated college costs. The Student Financial Clarity
Act has the potential to increase many students' ability to
make informed decisions for their postsecondary education.
However, Committee Democrats strongly urge Republicans to make
significant changes to this bill prior to its consideration in
the House to ensure it substantially improves transparency for
students, instead of making them more confused.
CONGRESS NEEDS TO IMPROVE THE COLLEGE SCORECARD AND NET
PRICE CALCULATORS
College Scorecard
The College Scorecard was established in 2015 under the
Obama Administration to serve as a tool to provide consumer
information on specific institutions of higher education.\1\
This new application of public data was the first attempt at
providing the general public a comprehensive review of student
outcomes and federal student aid trends across colleges. The
College Scorecard utilizes data reported to the Department of
Education (Department) through the Integrated Postsecondary
Data System (IPEDS), a data system run by the National Center
for Education Statistics (NCES) within the Department's
Institute of Education Sciences (IES). Although the Department
has continued to operate and update the College Scorecard since
its inception, the tool is not currently codified in the HEA.
---------------------------------------------------------------------------
\1\College Scorecard, U.S. Dep't of Educ., https://
collegescorecard.ed.gov/; The New College Scorecard, Inside Higher Ed
(Sep. 13, 2015), https://www.insidehighered.com/news/2015/09/14/obama-
administration-publishes-new-college-earnings-loan-repayment-data.
---------------------------------------------------------------------------
After the launch of the College Scorecard, the Department
has continued to improve the quality and expand the types of
data on college costs and outcomes collected from colleges. As
more robust and disaggregated data was reported through the
College Scorecard, students gained a better sense of which
colleges were best suited to help them achieve their
postsecondary goals.
In 2022 and 2023, the Biden Administration made several
improvements to the College Scorecard aimed at increasing
outcomes and cost transparency. In February 2022, the College
Scorecard was updated to include:\2\
---------------------------------------------------------------------------
\2\IHEP Celebrates Updates to the College Scorecard to Better Equip
Students to Make Higher Ed Choices and Policymakers to Promote Equity-
Driven Policies, Inst. for Higher Educ. Pol. (Feb. 7, 2022), https://
www.ihep.org/press/ihep-celebrates-updates-to-the-college-scorecard-to-
better-equip-students-to-make-higher-education-choices-and-
policymakers-to-promote-equity-driven-policies/.
---------------------------------------------------------------------------
Median earnings data at the institutional
level;
Median earnings data disaggregated by
income, gender and dependency status;
Share of former students earning more than a
typical high school graduate; and
Refreshed cumulative student loan debt data
by field of study.
In April 2023, additional College Scorecard changes were
made, including:\3\
---------------------------------------------------------------------------
\3\Letter from the Postsecondary Data Collaborative to Former U.S.
Dep't of Educ. Sec'y Dr. Miguel Cardona (Feb. 23 2022), https://live-
ihep-wp.pantheonsite.io/wp-content/uploads/2022/02/2022_College-
Scorecard-updates.pdf.
---------------------------------------------------------------------------
Median earnings data at the institutional
and program level;
Median earnings data at the institutional
level;
Updated loan repayment rates at the
institutional and program level;
Race/ethnicity and gender data for college
staff and faculty;
Notice if a program of study is provided
entirely through distance education.
Higher education data experts applauded these additions as
big strides in transparency. These experts also emphasized that
additional improvements to the College Scorecard are still
needed ``to increase transparency and fill gaps in our
postsecondary data system so students can more easily find
high-value postsecondary programs that align with their goals,
and steer clear of programs that do not.''\4\
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\4\Updated College Scorecard Data Shed New Light on Student
Earnings, Borrower Repayment Outcomes, Campus Diversity, and More,
Inst. for Higher Edu. Pol. (May 15, 2023), https://www.ihep.org/
updated-college-scorecard-data-earnings-repayment-campus-diversity/;
Chazz Robinson, New Wins for the College Scorecard, Third Way (Jun. 14,
2023), https://www.thirdway.org/blog/new-wins-for-the-college-
scorecard.
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Net Price Calculators
Since 2011, the HEA has required colleges to provide
students with a net price calculator on the their websites as a
condition of receiving federal student aid.\5\ Net price
calculators estimate students' net price by sharing the net
prices of students with similar financial and academic
circumstances.\6\ Net price calculators take into account
grants and scholarships to provide a preliminary estimate of
out-of-pocket net price for one year of college.
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\5\20 U.S.C. 1015a; Lucie Lapovsky, Designing a Net Price
Calculator (opinion), Inside Higher Ed (Mar. 3, 2011), https://
www.insidehighered.com/views/2011/03/04/designing-net-price-
calculator.
\6\For a database of all net price calculators, see https://
collegecost.ed.gov/net-price.
---------------------------------------------------------------------------
Currently, net price calculators require the student to
input the following student information to estimate their
Student Aid Index (SAI):\7\ student and family income;
dependency status; and estimated cost of attendance. Net price
calculators then provide the following estimates back to a
student for one year of college:\8\
---------------------------------------------------------------------------
\7\See IES Net Price Calculator Info Center at https://nces.ed.gov/
ipeds/report-your-data/
resource-center-net-price.
\8\Id.
---------------------------------------------------------------------------
Total cost of attendance;
Tuition and fees; room and board;
Books and supplies; other expenses (personal
expenses, transportation, etc.);
Total grant aid;
Net price;
Percent of the cohort (full-time, first-time
students) that received grant aid; and
Various disclaimers and caveats required by
the HEA.
Students typically use these calculators early in their
college search process and prior to completing the Free
Application for Federal Student Aid (FAFSA) form to start
comparing potential costs. However, a student's cost of
attendance is not finalized until they submit a FAFSA and a
college provides a formal financial aid award letter. While net
price calculators are helpful as currently devised, there have
been calls for the calculators to better estimate the full cost
of attendance, account for indirect costs, and differentiate
between merit grants, need-based grants, and the various loan
types.\9\
---------------------------------------------------------------------------
\9\Monica Maldonado, How Net Price Calculators Can Better Serve
Students, Inst. for Higher Educ. Pol. (Oct. 23, 2019), https://
www.ihep.org/how-net-price-calculators-can-better-serve-
students/.
---------------------------------------------------------------------------
In the 116th Congress, the bipartisan Net Price Calculator
Improvement Act was incorporated into the College Affordability
Act, comprehensive legislation to reauthorize the Higher
Education Act of 1965 (HEA) which was reported out of Committee
along party lines.\10\ The Net Price Calculator Improvement Act
would have made changes to the required estimates produced by
colleges' net price calculators and would have allowed the
Department to establish a Universal Net Price Calculator. In
the 118th Congress, Republicans passed out of Committee the
College Cost Reduction Act (CCRA), which incorporated an
updated version of the Net Price Calculator Improvement Act.
This updated version would actually require--not simply allow--
the Department to develop a Universal Net Price Calculator
within the College Scorecard, in addition to making several
changes to the College Scorecard's required data.\11\ Committee
Democrats did not support the passage of CCRA, but did express
support for this provision and suggested it ``could form the
basis of legislation with a viable chance of passage into
law.''\12\
---------------------------------------------------------------------------
\10\Net Price Calculator Improvement Act, H.R. 1915, 116th Cong.
(2019); College Affordability Act, H.R. 4674, 116th Cong. Sec. 1021
(2019).
\11\Net Price Calculator Improvement Act, H.R. 1214, 118th Cong.
(2023); College Cost Reduction Act, H.R. 6951, 118th Cong. Sec. 112
(2024).
\12\H.R. Rep. No. 118-739 at 383 (2024).
---------------------------------------------------------------------------
H.R. 6498 ATTEMPTS TO IMPROVE BROKEN COLLEGE SCORECARD
H.R. 6498 partially addresses the need to improve the
College Scorecard and enhance net price calculators. The bill
codifies the College Scorecard and adds required consumer
information on both the College Scorecard and a newly
established Universal Net Price Calculator. Specifically, it
requires the Secretary to display and annually update on the
College Scorecard institutional information and data on
programs of study, disaggregated to the extent privacy laws
allow. This would include information on student enrollment,
progression and completion, college costs and financial aid,
student debt and repayment, and post-program earnings, among
other things. The bill also requires that the College Scorecard
provide users with the ability to compare such information
between institutions. H.R. 6498 also requires the Secretary to
establish a Universal Net Price Calculator that allows
individuals to compare the costs of both institutions and
programs of study along with allowing providing individuals
with various estimated net prices for completion based on self-
identified similarly situated students. Like the College
Scorecard, the bill mandates the Universal Net Price Calculator
be updated annually. Unlike the current system which allows
individual institutions to decide what information goes into
their unique net price calculators, this bill's framework
seemingly aims to set up a one-stop-shop for students to
compare institutions with standardized and streamlined metrics.
H.R. 6498 requires the Secretary to conduct regular consumer
testing to help improve the usefulness and relevance of both
products.
While Committee Democrats have typically been supportive of
codifying and making improvements to the College Scorecard and
creating the Universal Net Price Calculator, there are several
concerns, outlined in these views, which make it difficult to
believe this legislation could be successfully implemented if
enacted as drafted. Several--but not all--of these concerns
could be addressed by reverting to a framework for the College
Scorecard and Net Price Calculator changes contain within the
Republican-led CCRA that the Committee considered last
Congress.
H.R. 6498 DOES NOT INCLUDE ADEQUATE INFORMATION ON INDIRECT
COSTS
H.R. 6498 creates several defined metrics related to a
student's estimated net price, aimed at helping students
understand how much they may pay for college after accounting
for grants and scholarships. However, the bill's multiple net
price definitions will make it very confusing for prospective
students to actually estimate their cost of attendance.
Specifically, the bill defines the following new terms: total
net price required for completion; annual net price required
for completion; total net price of attendance; and annual net
price of attendance. None of these net price estimates paint a
full picture of cost of attendance beyond tuition and fees.
The bill defines total net price required for completion as
the difference between required costs charged a student and the
amount of grant aid available to the student. By using this
definition, students are only able to estimate how much they
will pay for tuition and fees, and, if mandated by their
institution, on-campus housing and dining services fees. This
means that students who plan on living on campus will be unable
to fully evaluate an adequate net price for institutions that
offer, but do not require, on-campus housing or meal plans.
But, the bill also defines total net price of attendance,
calculated as the sum of the total net price required for
completion and indirect costs. As defined in H.R. 6498, the net
price of completion metric does not adequately take into
consideration ``indirect costs'' that arise for college
students, which calls into question its value for students.
Indirect costs include necessities such as transportation,
housing, technology, and other costs, all of which students
must bear to fully access and complete their coursework.\13\
For example, without having funds to access stable housing as
they matriculate, a student cannot be expected to adequately
tend to their studies. Therefore, the total net price required
for completion metric does not paint the full picture of cost
of attendance and its inclusion makes it harder for students to
make ``apples-to-apples'' comparisons between various colleges.
---------------------------------------------------------------------------
\13\Planning for Indirect Costs, uAspire (last visited Jan. 5,
2026), https://www.uaspire.org/getattachment/57ed37ef-7ea9-4521-8c41-
39f4494e169c/FY25-Planning-for-Indirect-Expenses.pdf?lang=en-US.
---------------------------------------------------------------------------
A stronger metric to incorporate in the bill for purposes
of the calculations of net price for completion would be the
cost of attendance. The cost of attendance is typically known
as the full price to attend an institution that more seamlessly
incorporates both direct costs and indirect costs. In a 2022
report, the U.S. Government Accountability Office (GAO) found
that most colleges and universities do not provide students
with all the information necessary to help students clearly
understand their financial aid offers.\14\ GAO reported that
approximately 55 percent of institutions do not provide a total
cost of attendance that include key direct and indirect costs
for students.\15\ GAO also found that an estimated 91 percent
of institutions do not include or understate the net price,
including both direct and indirect costs,\16\ in their
financial aid offers.\17\ As a result of these findings, GAO
recommended federal lawmakers to take up legislation to mandate
institutions of higher education to follow best practices for
providing students with clear and standard financial aid
offers. Thus, to improve the College Scorecard and the proposed
Universal Net Price Calculator, Congress must include better
information on indirect costs and incorporate these costs into
the estimates published by the Universal Net Price Calculator.
Specifically, Committee Democrats strongly suggest defining any
definition of ``net price'' as one that shows the difference
between the cost of attendance and grant aid and requiring the
consumer testing of all definitions that will be presented to
students on a net price calculator to determine if they provide
clarity.
---------------------------------------------------------------------------
\14\U.S. Gov't Accountability Off., GAO-23-104708, Financial Aid
Offers: Action Needed to Improve Information on College Costs and
Student Aid (Nov. 2022), https://www.gao.gov/assets/gao-23-104708.pdf.
\15\Id. GAO defined direct costs as ``Costs that are typically
billed directly by the college. Examples include tuition, fees, and on-
campus housing and meals.'' It defined indirect costs as ``Costs that
students pay to other parties throughout the academic term. Examples
include books, academic supplies, off-campus housing and meals, and
other miscellaneous expenses, such as transportation.''
\16\GAO defined net price as ``The actual amount a student will
need to pay to attend a particular college. This should be estimated by
subtracting gift aid (and not loans or work-study) from the full cost
of attendance (key direct and indirect costs).''
\17\Id.
---------------------------------------------------------------------------
H.R. 6498 DATA DOES NOT INCLUDE ALL STUDENTS
H.R. 6498 requires the College Scorecard to include various
data aggregated at the institutional and program levels,
including but not limited to information on college entrance
exams, acceptance rates, retention and completion rates,
college costs, student debt, and post-graduate earnings.
Regrettably, the bill only requires institutions to report this
information for students who have received Federal financial
assistance, specifically tuition assistance from programs
administered by the Departments of Education, Labor, Defense,
or Veterans Affairs. The data of students who do not receive
such funds is not included in these statistical samples.
Committee Democrats are disappointed this legislation does
not include data for all students who are enrolled in
postsecondary education. Currently, roughly one third of
undergraduate students are not represented in College Scorecard
data because they do not receive federal student aid.\18\
Further, when the Committee considered a similar policy in the
118th Congress, the American Association of Community Colleges
estimated that more than half of all community college students
enrolled in credit-bearing coursework would not be included in
the aggregate data.\19\ This makes this data much less reliable
for students interested in community college, and policymakers
trying to analyze how this population is performing. If
Congress is going to reform higher education data, this
information gap is unacceptable. All students, not just those
receiving federal assistance, deserve reliable and accurate
cost estimates and representative information. Incomplete,
nonrepresentative data is not sufficient for students to make
informed choices, and it is harder for policymakers to address
any equity gaps that data could show.\20\
---------------------------------------------------------------------------
\18\The analysis found that 72 percent of all undergraduate
students received one of the following in it he 2019-2020 academic
year: Pell grants, student loans, Federal Work-Study and G.I. Benefits.
Note that this calculation does not include students receiving DOD or
DOL benefits. Nearly Three-Quarters of Undergraduates Received Some
Type of Financial Aid in 2019-20, Nat'l Inst. of Educ. Stats., Inst.
for Educ. Sci. (Jul. 26, 2023), https://ies.ed.gov/learn/press-release/
nearly-three-quarters-undergraduates-received-some-type-financial-aid-
2019-0920.
\19\Letter from Walter G. Bumphus, President and CEO, Amer. Assoc.
of Community Coll., to Rep. Virginia Foxx, Chair, Cmte. on Educ. & the
Workforce and Rep. Bobby Scott, Ranking Member, Cmte. on Educ. &
Workforce (Jan. 30, 2024), https://www.aacc.nche.edu/2024/01/31/aacc-
letter-on-college-cost-reduction-act/.
\20\Amanda Janice Roberson, Why Incomplete Data Leaves Us With
Incomplete Student Outcomes, Inst. for Higher Educ. Pol. (Dec. 1,
2017), https://www.ihep.org/why-incomplete-data-leaves-us-with-
incomplete-student-outcomes/.
---------------------------------------------------------------------------
Two consistent bipartisan goals within higher education
data reform are to count all students and streamline the
reporting requirements of colleges. Committee Democrats urge
Congress to lift the federal ban on student-level data and
require the Department to collect data on all students, not
just those who have received Federal financial aid. Better data
on costs and outcomes--specifically a student-unit record data
system, such as what is proposed in the bipartisan College
Transparency Act\21\--would further improve the College
Scorecard and help all students make even more informed
choices.
---------------------------------------------------------------------------
\21\H.R. 4806, 119th Cong. (2025).
---------------------------------------------------------------------------
H.R. 6498 DOES NOT ALIGN WITH OTHER FEDERAL REPORTING
REQUIREMENTS
The policies developed in H.R. 6498 to improve consumer
information on earnings do not take into consideration several
other federal reporting requirements that the Department of
Education is attempting to implement and reform regarding
program-level earnings.
In 2023, the Biden Administration finalized regulations
establishing the strongest ever gainful employment (GE) rule to
protect students from low-quality career training programs.\22\
The rule established a debt-to-earnings metric and an earnings
threshold that certificate programs and programs at for-profit
colleges must pass to continue receiving federal student aid.
The Biden Administration also developed the Financial Value
Transparency (FVT) framework to improve outcomes transparency
across all postsecondary programs.\23\ Further, the Department
created a portal to disclose the GE data for all
postbaccalaureate programs at all public and non-profit
colleges, regardless of whether they are subject to GE
enforcement. Together, these regulations (described jointly as
GE/FVT) established a strong framework to protect students and
taxpayers and ensure accountability.
---------------------------------------------------------------------------
\22\Hugh T. Ferguson, ED Releases Final Rule on Gainful Employment
and Financial Value Transparency Framework, Nat'l Assoc. of Student
Fin. Aid Administrators (Sep. 27, 2023), https://www.nasfaa.org/news-
item/31745/ED_Releases_Final_Rule_on_Gainful_Employment_
and_Financial_Value_Transparency_Framework.
\23\Fact Sheet: Holding Colleges Accountable for Delivering
Financial Value for Students, U.S. Dep't of Educ. (Oct. 2023),
www2.ed.gov/policy/highered/reg/hearulemaking/2021/gainful-employment-
and-transparency-fact-sheet.pdf.
---------------------------------------------------------------------------
Thus, Committee Democrats were pleased to see the bill's
requirement to report several elements of FVT data
disaggregated at the program level. We felt they worked in
concert with the GE/FTV regulations to provide students a
stronger sense of their potential earnings outcomes. During the
markup, Rep. Takano (D-CA) offered an amendment to codify these
regulations to ensure they remain consistent across
administrations. The amendment was not adopted. Without
codification of these regulations, students are relying on the
Trump Administration to faithfully implement GE/FVT
regulations, which Committee Democrats are skeptical of, given
the previous Trump Administration's interest in dismantling
GE.\24\
---------------------------------------------------------------------------
\24\Yan Cao, Robert Shireman, Betsy DeVos's Shameful Repeal of the
Gainful Employment Rule, The Century Foundation (Jul. 1, 2019), https:/
/tcf.org/content/commentary/betsy-devoss-shameful-repeal-gainful-
employment-rule/.
---------------------------------------------------------------------------
Further, earlier this year Congressional Republicans passed
their sweeping cuts to higher education within P.L. 119-21,
which included an accountability framework somewhat similar,
but not identical, to GE/FVT, designed to protect students from
programs that do not provide graduates with adequate earnings.
On January 9, negotiators with the Department reached consensus
on new program accountability rules that at least one
negotiator feels, ``fall short of what the minimum standard for
accountability should be.''\25\ As of the filing of this
report, the Department of Education has not finalized the
regulations to implement the accountability policies on which
the negotiators reached consensus. Therefore, Committee
Democrats urge Congress to wait to pass legislation around
reporting program-level earnings outcomes until it can ensure
the policies are aligned with--or improve upon--upcoming
regulations on GE, FVT, and P.L. 119-21's accountability
framework. Otherwise, we risk contributing to the already
confusing federal student aid landscape created by P.L. 119-21.
---------------------------------------------------------------------------
\25\Katherine Knott, ED Panel Signs Off on New Earnings Test,
Inside Higher Ed., Jan. 9, 2026, https://www.insidehighered.com/news/
government/student-aid-policy/2026/01/09/ed-panel-signs-new-earnings-
test.
---------------------------------------------------------------------------
H.R. 6498 CREATES MORE CONFUSION FOR PROSPECTIVE STUDENTS
In addition to concerns around indirect costs, the
exclusion of students not receiving federal financial
assistance, and the lack of alignment with ongoing regulatory
efforts, there are a handful of other provisions in the
legislation that raise concern for Committee Democrats.
Net Price Calculator Differences
H.R. 6498 does not require the data on a college's net
price calculator to match the data the college reports to the
Universal Net Price Calculator. Therefore, a student could
receive one cost estimate from the college's website and a
conflicting cost estimate from ED's website. Thankfully, the
Republicans supported an amendment by Rep. Alma Adams (D-NC) to
require the Department of Education to make it clear on the
Universal Net Price Calculator that results on an institution's
net price calculator and those for the same institution on the
Universal Net Price Calculator may differ. However, just noting
that discrepancy does not provide a clear picture for students
looking to understand college costs. Committee Democrats
suggest more should be done to help students understand how and
why the figures between the Universal Net Price Calculator and
the net price calculation on the institution's website differ.
Outside Scholarships
H.R. 6498 requires colleges to publish information on the
amount of grant and scholarship aid available to students. The
bill's definition includes need-, merit- and athletic-based
grant and scholarship aid that comes in the form of federal
student aid, state aid, institutional aid, or from ``any other
source.'' It is very important for students to have a snapshot
of how much grant aid they may receive; however, it is unclear
whether colleges will be able to accurately estimate outside
scholarship amounts. It is not appropriate to expect an
institution to know how much private grant and scholarship aid
may be available to any prospective student. For example,
institutions likely Committee Democrats suggest speaking with
institutions to better understand how much insight into private
grants and scholarships they have for prospective students
prior to submitting the FAFSA.
Privacy Concerns
The bill raises several privacy concerns due to
requirements related to disaggregation of reported data. While
the bill explicitly states that its disaggregation requirements
are subject to federal privacy laws, it is unclear how some
requirements of the bill can be implemented without the
potential to violate former student's privacy or suppress
significant data. For example, H.R. 6498 requires colleges to
report the minimum and maximum earnings of both students who
completed their studies and those who did not complete their
studies. However, these metrics contemplate discrete data
points that belong to individuals. It is possible that such
reporting could threaten the privacy of the highest- and
lowest- earners in a particular program, when combined with
other publicly available data. Additionally, there is an
inconsistency between the disaggregation requirements in the
bill and current reporting requirements that do not require
disaggregation. The bill requires nearly all institutional data
to be disaggregated by various characteristics. But similarly,
such disaggregation for several metrics, such as the Cohort
Default Rate, likely could not be completed without privacy
suppression due to too much specificity. Committee Democrats
believe these privacy issues should be addressed before the
bill is considered any further.
IPEDS Reporting
H.R. 6498 requires a significant amount of data to be
included in the College Scorecard that the Department does not
currently collect from institutions via IPEDS. Given that
College Scorecard data is obtained from IPEDS, it is unclear
where the data that the bill requires to be reported to the
College Scorecard, but is not collected by the Department, will
originate. And given that the bill does not proactively require
colleges report these items to the Department, this bill could
create a situation where colleges may be required to comply
with a data reporting process neither fully contemplated nor
authorized in law.
College Navigator
H.R. 6498 eliminates the authorization of the College
Navigator, a predecessor to the College Scorecard, codified in
the HEA, that provides public-facing information on higher
education.\26\ While this makes sense in practice to migrate
entirely to the College Scorecard, the legislation does not
ensure that the data statutorily required to be included in
College Navigator content that are not captured in the bill's
new reporting requirements are incorporated into the Scorecard
for students to review. Committee Democrats suggest that all
previously available data under Sec. 132(i) of the HEA continue
to be updated and made publicly available either within the
College Scorecard or other databases managed by the Department.
---------------------------------------------------------------------------
\26\See College Scorecard, Nat'l Ctr. For Educ. Stats., https://
nces.ed.gov/collegenavigator/.
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H.R. 6498 CANNOT BE IMPLEMENTED WITH A GUTTED DEPARTMENT OF
EDUCATION
Since returning to office in January, the Trump
Administration has made no secret of its plans to dismantle the
Department of Education (Department) and in turn, has fired a
significant number of staff.\27\ Shortly after being confirmed
by the Senate, Secretary Linda McMahon initiated a reduction in
force for the Department's staff, which impacted approximately
50 percent of the staff,\28\ who were experts in the policies
and programs of the Department of Education, such as those at
the Institute for Education Sciences.\29\ Since that time the
Department has attempted to fire even more staff. For instance,
during the government shutdown in the fall, the Administration
attempted to cut 465 Department employees, though they were
later challenged in courts and ultimately stopped by
Congress.\30\ Further, the Department has signed several
interagency agreements to hand off much of its responsibilities
to other agencies,\31\ with apparent plans to implement even
more.\32\
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\27\See e.g., Exec. Order No. 14242, 90 Fed. Reg. 13679 (Mar. 20,
2025), https://www.whitehouse.gov/presidential-actions/2025/03/
improving-education-outcomes-by-empowering-parents-states-and-
communities/.
\28\Press Release, U.S. Dep't of Educ., U.S. Department of
Education Initiates Reduction in Force (Mar. 11, 2025), https://
www.ed.gov/about/news/press-release/us-department-of-education-
initiates-reduction-force.
\29\Cory Turner, The Education Department is being cut in half.
Here's what's being lost, NPR (Mar. 13, 2025), https://www.npr.org/
2025/03/12/nx-s1-5325854/trump-education-department-layoffs-civil-
rights-student-loans.
\30\Paige Shoemaker DeMio, Weade James, The Trump Administration's
Latest Staffing Cuts at the Department of Education Threaten Children's
Success Across the Country, The Century Foundation (Oct. 28, 2025),
https://www.americanprogress.org/article/the-trump-administrations-
latest-staffing-cuts-at-the-department-of-education-threaten-childrens-
success-across-the-
country/.
\31\Press Release, U.S. Dep't of Educ., U.S. Department of
Education Announces Six New Agency Partnerships to Break Up Federal
Bureaucracy (Nov. 18, 2025), https://www.ed.gov/about/news/press-
release/us-department-of-education-announces-six-new-agency-
partnerships-break-federal-bureaucracy.
\32\See e.g., Juan Perez, Jr., The inside view of McMahon's plans
for special education, POLITICO, Dec. 22, 2025, https://
www.politico.com/newsletters/weekly-education/2025/12/22/the-inside-
view-of-mcmahons-plans-for-special-education-
00702310?template_id=OT5J0E7B7DD7&is_ login_link=true.
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The Department of Education, particularly the Institute for
Education Sciences, would play a critical role in the
administration of H.R. 6498. The bill requires mandates its
implementation no later than 18 months after enactment and also
requires the Universal Net Price Calculator to be updated
annually. The verification and analysis of these data is a
significant undertaking that involves the Office of Federal
Student Aid (FSA), and the Office of Planning, Evaluation, and
Policy Development (OPEPD), and the NCES. Given this
Administration's decimation of the Department, Committee
Democrats have very serious concerns about the Administration's
capacity to successfully implement the bill.
DEMOCRATIC AMENDMENTS OFFERED DURING MARKUP OF H.R. 6498
Committee Democrats put forward seven amendments to improve
the bill. Democrats also offered proposals to codify
regulations that were designed to ensure that students
understand the value of the program they seek to complete,
highlight the impact of recent changes in law would have on
students, prohibit the impact of the dismantling of the
Department of Education on the implementation of this bill, and
help avoid student confusion between the data provided on
individual colleges' net price calculators and the Universal
Net Price Calculator. Committee Republicans rejected five of
the six Democratic amendments that were put to a vote.
----------------------------------------------------------------------------------------------------------------
Amendment Offered By Description Action Taken
----------------------------------------------------------------------------------------------------------------
#1................................... Mr. Takano............. Codifies Gainful Defeated
Employment and
Financial Value
Transparency
regulations.
#2................................... Ms. Adams.............. Requires the Secretary Offered and withdrawn
of Education to
conduct annual
consumer testing with
first-generation, low-
income, and
prospective students.
#3................................... Ms. Bonamici........... Prohibits the transfer Defeated
of Department of
Education authority to
implement the bill.
#4................................... Ms. Adams.............. Requires the Secretary Adopted by voice vote
of Education to inform
students that the
Universal Net Price
Calculator may provide
different estimates
than what is on a
college's Net Price
Calculator.
#5................................... Ms. Wilson............. Prohibits the use of Defeated
interagency agreements
to implement the bill.
#6................................... Mr. Scott.............. Provides funding for Defeated
the Department of
Education to implement
the bill and requires
the Secretary to
report to Congress on
how the funds will be
used.
#7................................... Mr. Scott.............. Requires the Universal Defeated
Net Price Calculator
to include information
on the amount of
federal student aid a
student would have
received prior to the
enactment of PL 119-21
compared to after.
----------------------------------------------------------------------------------------------------------------
CONCLUSION
Committee Democrats generally support the idea of codifying
the College Scorecard and creating a Universal Net Price
Calculator. Many even voted to report H.R. 6498 to the House
floor, recognizing the bill as step in the right direction to
be improved upon as the legislative process continues. However,
many Committee Democrats remain concerned the bill includes
language that could confuse potential students as they decide
which college is the best financial fit for them and their
families. We urge Committee Republicans work in a bipartisan
fashion to make the changes described in these views before the
final bill is considered in the House of Representatives.
Robert C. ``Bobby'' Scott,
Ranking Member.
Frederica S. Wilson,
Suzanne Bonamici,
Mark DeSaulnier,
Jahana Hayes,
Members of Congress.
[all]