College Financial Aid Clarity Act of 2025

Improved Transparency for Students and Families: Institutions must include specific information such as the annual net price, estimated cost of attendance, and details regarding the renewability of financial aid (Section 2(a)(1)(A) and Section s 2(a)(2)).

Clarity on Loan Obligations: The bill requires disclosures stating that loans must be repaid, that interest rates and fees affect total costs over time, and that students can borrow less than the offered amount (Section 2(a)(2)(C) and Section 2(a)(1)(A)(i)(E)).

Standardized Information Formats: Financial aid offers must use plain language and a specific order of information to ensure that required costs are not inappropriately omitted or deemphasized (Section 2(d)(1) and Section 2(d)(2)).

Consumer-Centric Rulemaking: The Secretary is required to establish a consumer testing process involving representatives of students and their families to ensure the requirements are simple and understandable (Section 2(b)(1)(A)).

Access to Comparison Tools: The bill requires institutions to provide links to the College Financing Plan website, a net price calculator, and the College Scorecard website to help families compare costs and outcomes (Section 2(a)(2)(D) and Section 2(a)(6)(E)).

Institutional Compliance Burdens: Institutions of higher education that receive Federal financial assistance must follow new requirements for all financial aid offers, including paper, mobile-optimized, or other electronic offers (Section 2(a)(1)(A)).

Changes to Electronic Confirmations: For electronic offers that require a student to confirm receipt, the institution may no longer consider such a confirmation as an acceptance or rejection of the offer (Section 2(a)(1)(B)).