Summary
Requires colleges to show the true cost of attendance and creates a new website to help students compare prices and financial aid options.
What problem does this solve?
Students and families often struggle to understand the real cost of college because the information is confusing and hard to find. This bill creates a central website and a price calculator to give clear, personalized cost estimates for different schools and programs.
Who does this affect?
- Prospective and current college students
- Families of college students
- Colleges and universities
What does this bill do?
Establishes a Universal Net Price Calculator
Creates a single government website where anyone can get a personalized estimate of what they will pay to attend a specific college or program after grants and scholarships are applied.
Enhances the College Scorecard website
Updates the College Scorecard website to include detailed information on costs, student debt, completion rates, and typical earnings for graduates of each program at every college.
Requires colleges to host a net price calculator
Mandates that every college must feature a net price calculator on its own website. Schools can either use the new government tool or build their own, as long as it includes the same information.
Breaks down data by student groups
Requires that all reported data on costs, debt, and earnings be separated by student characteristics like family income, race, sex, and disability status to show outcomes for different groups.
Creates a standard definition for 'program of study'
Defines what a 'program of study' is so that costs and outcomes can be compared fairly and accurately across different colleges and universities.
What is the real world impact?
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Empowers students with clear financial information
Provides students and families with easy-to-understand tools to compare the actual costs of different colleges and programs, helping them make better financial decisions and avoid unexpected debt.
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Increases competition among colleges
Makes it easier to compare the net price and student outcomes of different schools. This transparency may pressure colleges to lower costs or offer more financial aid to stay competitive and attract students.
When does this start?
The changes will take effect on July 1, 2027, for the 2027-2028 school year, with several deadlines for implementation before that date.
Reference
Text:
Section:
Sec. 2(b)(1)
Header:
Availability of information for title iv institutions and programs
College Scorecard and price calculator launch
The Secretary of Education must create the Universal Net Price Calculator and update the College Scorecard website with the new data within 18 months of the bill becoming effective.
Deadline for colleges to add calculators
Colleges must add a net price calculator to their own websites within two years after the government's universal calculator is made available.
Consumer testing of new tools
The government must test the new websites with students and families to make sure they are easy to use. The first round of testing must happen within 6 months of the bill's effective date.