By Louisa Woodhouse, Senior Associate, Policy and Advocacy; and MorraLee Keller, Senior Consultant
Reading time: Five minutes
College cost transparency policies have gained traction in recent years at the state and federal level, in an effort to help students and families better understand and plan for the true cost of postsecondary education. Though proposals vary – from standardizing
student aid award letters, to creating a universal net price calculator, or publicly displaying the cost of required textbooks and other course materials – the momentum toward providing clearer, more accessible information shows no signs of slowing.
Minnesota: Standardized Student Aid Offers
In June, state policymakers passed the College Financing Literacy Act, in an effort to bring greater clarity and consistency to the way students receive
financial aid information. The bill, which was included as part of the state's Higher Education Omnibus, directs the state’s commissioner of education
to develop a standardized financial aid offer form, designed in consultation with key constituencies including students, financial aid administrators, school counselors, and student loan advocates in the Department of Commerce and others.
The College Financing Literacy Act requires all higher education institutions that receive state grant aid to implement a uniform financial aid offer format, which must clearly outline costs, grants and scholarships, different types of loans and repayment
options, Federal Work Study opportunities, and a student’s net price, as well as information on how to accept or decline the available sources of aid. The changes will take effect for the 2028-2029 academic year. The legislation emphasizes the importance
of a consumer-friendly design and standardized terminology, though it allows colleges to include their own branding or include additional information. Minnesota State Senator Clare Oumou Verbeten, who introduced the bill, said at
a hearing in March that the legislation was designed as in “important consumer protection measure” for
students and families.
Ohio: Financial Aid and Costs Disclosure
The State of Ohio is also looking to increase transparency related to the cost of college for its students. House Bill 27, passed
in 2024, requires public institutions of higher education to provide a detailed financial costs and aid disclosure form to qualifying
(defined as newly admitted, fulltime and seeking a degree) students. The new process will take effect for the 2026-27 academic year. Students will receive the new form alongside their initial financial aid awards letters.
To help state colleges and universities meet the requirements set in HB 27, the Ohio Department of Higher Education (ODHE) has designed a template form. Colleges and universities can elect to design their own form instead, so long as it contains the information
required in the new law. The law states that public universities must include:
Attendance costs: Tuition, fees, room and board, and other institutional charges
Aggregate cost of attendance: The sum of all costs listed above
Financial aid: All grants, scholarships, work-study, and federal loans the student qualifies for, plus the requirements for eligibility for all aid sources.
Net cost: Expected cost after applying all aid for which the student is eligible
Loan repayment: The student’s estimated monthly payment after graduation
Graduate earnings: Income range (25th–75th percentile) for recent graduates, the five-year cohort, and graduates in the same major or school, if the student has declared.
The requirements for the community college form are the same as those listed for state universities, though the bill text specifies
that income and earnings information must be linked in a “readily available page on the college’s website.”
The requirements in the law are comprehensive and certainly provide transparency. In order to support institutions in accessing the required income and earnings metrics, ODHE has created a public dashboard pulling from the Post-Secondary Employment Outcomes dataset for Ohio graduates.
Federal Cost Transparency Initiatives
College cost transparency has been an increasingly important topic for policymakers in Congress on both sides of the aisle. In November, Senator Bill Cassidy (R-LA), Chair of the Senate Health, Education, Labor, and Pensions Committee, announced a
request for information on increasing college cost and value transparency, to which NCAN responded. The RFI was followed by a November hearing in the Senate, entitled “Reforming
Financial Transparency in Higher Education.” Earlier this year, Senator Cassidy, reintroduced the bipartisan College Transparency Act, alongside Senator Elizabeth
Warren (D-MA), which the National College Attainment Network (NCAN) endorsed.
The House of Representatives Higher Education and Workforce Development Subcommittee also held a hearing earlier this fall focused reforming college pricing and improving transparency. In early December, members of the House introduced new legislation
focused on improving financial aid letters and the data available to students as they consider their postsecondary options: the Student Financial Clarity Act (H.R. 6498) and the College Financial Aid Clarity Act (H.R. 6502), both marked up by the House Education and Workforce Committee last week, were reported favorably on votes of 27-6, and 23-10, respectively. The Student Financial Clarity Act would expand the data included in the College Scorecard and establish a Universal Net Price
Calculator. The College Financial Aid Clarity Act would require institutions to consumer test their financial aid award letters, and to include certain cost and aid information, as well as standardized terminology, on all awards. While both bills
advanced with bipartisan support, Ranking Member Bobby Scott (D-VA), reminded the Committee and viewers that a focus on increasing affordability was still necessary, and that “bills that explain the cost [of college] do not reduce the cost.”
Together, these initiatives signal growing recognition that students and families deserve straightforward, reliable information about what they will need to pay to pursue their chosen postsecondary pathways. As more states and federal leaders take up
this charge, NCAN will continue to advocate for policies that make college costs clearer and more accessible.
Questions? Reach out to Louisa Woodhouse, Senior Associate, Policy and Advocacy, at woodhouse@ncan.org.
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