Committee approves College Financial Aid Clarity Act to standardize aid offers, sets implementation deadlines

The House Education and Labor Committee on Thursday approved HR6502, the College Financial Aid Clarity Act, which directs the Department of Education to develop standardized, consumer‑tested formatting requirements for financial aid offer letters and requires institutions that receive Title IV funds to adopt the format.

Representative Bob Onder, explaining an amendment in the nature of a substitute, said the bill would protect students from misleading aid offers that obscure loans as grants, omit required costs, or use inconsistent formats that make comparisons difficult. Onder said the Department would conduct consumer testing and publish final formatting requirements by July 1, 2028, with institutional implementation beginning July 1, 2029.

Democratic members pressed for stronger standardization and consumer safeguards, including codifying gainful‑employment rules, requiring consumer testing with low‑income and first‑generation students, and ensuring the Department retains responsibility (not delegating to other agencies). Several Democrat amendments were debated and later rejected by roll call; supporters said the bill was nonetheless a step toward clearer aid information.

The committee agreed to the amendment in the nature of a substitute as amended and reported HR6502 to the House; the clerk announced a recorded vote of 23 ayes and 10 nays. The chair authorized staff to make technical and conforming changes and said members have time to file supplemental views as permitted under House rules.

Members emphasized that the reforms alone do not reduce tuition but said clearer, comparable aid offers can help students and families make better informed decisions.