Student Financial Clarity Act of 2025
Summary
The Student Financial Clarity Act of 2025 aims to increase transparency in college tuition costs for consumers by amending the Higher Education Act of 1965. It mandates the Secretary of Education to make detailed information publicly available on the College Scorecard website, including institution-specific data on costs, financial aid, student debt, and earnings. The bill also establishes a Universal Net Price Calculator to provide students with estimated net price calculations for different institutions and programs.
Expected Effects
This act will likely lead to students and families having better access to information regarding the true cost of higher education. It will also allow for easier comparison between institutions. The changes aim to empower students to make more informed decisions about their education and finances.
Potential Benefits
- Provides greater transparency in college costs and financial aid.
- Empowers students to make informed decisions about higher education.
- Allows for easier comparison of costs between different institutions and programs.
- Enhances the College Scorecard website with more detailed data.
- Establishes a Universal Net Price Calculator for estimating college expenses.
Potential Disadvantages
- The act's effective date is July 1, 2027, delaying immediate benefits.
- Institutions may face administrative burdens in collecting and reporting the required data.
- The accuracy of net price calculations depends on the data provided and the assumptions made.
- The act relies on the Department of Education for effective implementation and maintenance of the College Scorecard website and Universal Net Price Calculator.
- Potential for information overload if the data is not presented in a user-friendly manner.
Constitutional Alignment
The Student Financial Clarity Act of 2025 aligns with the Constitution's general welfare clause, as it promotes informed decision-making in higher education, potentially leading to a more educated populace. While the Constitution does not explicitly address education, the federal government's role in higher education is long-standing. The Act does not infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).