H.R. 6498: Student Financial Clarity Act of 2025

This bill, known as the Student Financial Clarity Act of 2025, aims to enhance the transparency of college tuition and costs to assist consumers, particularly students and their families, in understanding the financial aspects of higher education. Here’s a simplified breakdown of the key provisions:

Definitions and Key Terms

The bill establishes several new definitions related to college tuition and costs, including:

• College Scorecard website: The platform where updated cost and financial aid information will be made available to the public.
• Cost of attendance: This includes tuition, fees, and other necessary living expenses required by a higher education institution.
• Required costs: A precise calculation of all costs mandated by the institution for a particular program of study.
• Net price required for completion: The total costs minus any grants or scholarships available to the student.

Increased Consumer Information

The bill mandates that, within 18 months of its enactment, the Secretary of Education must provide comprehensive data on the College Scorecard website, including:

• Links to institutions, their websites, and relevant safety information.
• Acceptance rates, institutional cohort default rates, and types of degrees offered.
• Information on student enrollment, program details, completion rates, and financial aid statistics.

Universal Net Price Calculator

The bill also requires the establishment of a Universal Net Price Calculator to help prospective students estimate their potential college costs, including:

• Estimated annual net prices for various institutions and programs based on the individual's profile and needs.
• Detailed breakdowns of required costs and available financial aid.
• Options for comparing different institutions and programs easily.

Annual Data Updates

To ensure that the information remains current, the Secretary of Education will be tasked with updating all relevant data on the College Scorecard website and the Universal Net Price Calculator at least once a year.

Institution Requirements

Institutions of higher education that receive federal funding must develop and make available their own net price calculators that align with the standards set in the bill. They are also required to disclose detailed cost information related to each program of study they offer.

Disaggregation of Data

Information provided must be disaggregated by various student characteristics, including:

• Financial circumstances.
• Race and ethnicity.
• Enrollment status.
• Status as a student with disabilities.

Effective Date

This legislation is set to take effect on July 1, 2027, and will apply to educational award years beginning in 2027-2028.

Relevant Companies

None found