The text outlines the structure of the "College Cost Reduction Act," including its short title and the organization of its contents into several titles and sections. These sections cover topics like increasing transparency about college costs, improving access to financial aid, ensuring accountability, supporting student success, and managing departmental regulations and loan programs.

The section explains that unless stated otherwise, any amendments or repeals mentioned in the Act refer to changes made to sections or other parts of the Higher Education Act of 1965.

This section of the bill provides definitions for terms related to higher education programs, such as CIP code, which identifies a field of study; credential level, which indicates the level of degree awarded; program of study, which is the course leading to a credential; program length, referring to the duration required for completion; time to credential, the actual time taken by a student to earn a credential; and value-added earnings, which are calculated earnings of a student after adjusting for poverty line deductions and geographic cost differences.

The section outlines requirements for creating a standardized financial aid offer form for colleges, developed by the Secretary of Education with input from relevant groups. This form must clearly list cost information, grants, scholarships, and loans in a simple manner, ensuring transparency for students about their financial commitments and available aid while using a consistent format across all institutions receiving federal aid.

The section mandates the development of a standardized financial aid offer form for students by the Secretary of Education, including clear and standardized terminology, information on costs, grants, scholarships, loans, and work-study opportunities. It outlines requirements for content, formatting, and testing to ensure the form is consumer-friendly, easy to understand, and helps students and families better comprehend college costs and financial aid eligibility.

Each college or university that receives federal financial aid must use a specific financial aid offer form and terms set by the Secretary of Education for all students applying for aid. These requirements become effective when the new FAFSA form is released, as long as it is at least one year after the finalization of the standards, but no regulations will be set to enforce this.

The bill section amends the Higher Education Act of 1965 to create a College Scorecard website that provides comprehensive information on colleges and their programs, such as financial aid, student debt, and earnings. It requires the information to be regularly updated and made easily accessible and comparable for students and families, ensuring privacy is maintained.

The section amends the Higher Education Act to establish a secure system that collects and analyzes data about college students to improve transparency and support decision-making by students and families. It outlines privacy protections, the types of data collected, guidelines for sharing information with other federal agencies, and restrictions on the use of the data.

The section prohibits the creation of a student information database, but allows exceptions for certain existing systems that support specific educational programs and are necessary for their operation. It also updates rules for schools to submit certain data and aims to ease data reporting burdens for those using the education data system.

The bill modifies the calculation of financial need for college students, stating that for the 2024–2025 school year, a student's cost of attendance is used, and from 2025–2026 onward, it shifts to the median cost of the student's program across all colleges. Additionally, it clarifies how the cost of attendance and median cost of college are determined for educational programs offered by institutions.

The section explains that the "median cost of college" refers to the middle value of the costs students pay to attend a program at colleges or universities, calculated from the previous year for that program.

The amendment to the Federal Pell Grant program sets a maximum award limit that cannot exceed the median cost of college for a student's program. It introduces a Pell Plus program, allowing eligible students to receive an additional grant equal to their initial Pell Grant, provided the combined amount does not surpass the median cost. The bill also requires participating institutions to offer a price guarantee on tuition, ensuring costs do not exceed the expected earnings from the program. The changes apply from the 2025–2026 award year onward.

The section outlines changes to campus-based aid programs, terminating certain programs like the Federal Supplemental Educational Opportunity Grants after 2026, and introducing PROMISE grants, which are performance-based grants awarded to eligible institutions to promote affordability, access, and success in postsecondary education. PROMISE grants require institutions to meet specific criteria, such as providing a guaranteed maximum total price for completion for students, and the funds must be used for activities that improve affordability, access, student success, and evaluation of these activities.

The purpose of this section is to offer grants based on performance to help institutions give clear information about college costs to students and families, improve access to higher education and economic opportunities, and make sure everyone benefits financially from investments in education.

The government will start awarding PROMISE grants from the 2026-2027 school year to support certain institutions. These grants are based on performance and last for six years, with funding determined by specific rules.

To be eligible for a PROMISE grant, a college must adhere to price guarantee rules, ensuring transparency about the maximum total cost for students in different income categories. They must also provide detailed plans on using the grant for enhancing college affordability, access, and student success, while evaluating and sharing effective practices.

The section outlines the formula for determining the amount of a PROMISE grant that colleges can receive each year, based on several factors including students' earnings, Federal Pell Grants, and the college's percentage of low-income students. It also states the maximum grant an institution can receive annually, which is tied to the number of students receiving federal aid, and allows colleges to use the grants flexibly for activities that improve affordability, access, and student success.

The bill authorizes the use of specific funds remitted as risk-sharing payments and additional appropriations that total $2 billion for the next ten years to support grants under this subpart. If there are not enough funds, the grants will prioritize institutions with the highest percentage of low-income students.

The section outlines changes to loan limits for Stafford loans. Starting July 1, 2025, graduate and professional students will have new annual and total borrowing limits based on the median cost of college. There are exceptions for students already enrolled before this date. Additionally, new limits are set for undergraduate borrowers, with special conditions for students in certain programs, and institutions can adjust borrowing amounts based on certain financial criteria. Furthermore, Federal Direct PLUS loans to parents and graduate students will be discontinued after this date.

The bill outlines changes to the repayment plans for loans under the Higher Education Act of 1965, starting July 1, 2024, offering borrowers either a standard 10-year repayment plan or a repayment assistance plan. It also describes guidelines for borrowers who default, allows for repayment plan changes, and introduces a repayment assistance plan that caps monthly payments based on income and family size, with provisions for interest and principal subsidies for distressed borrowers.

The section changes the Higher Education Act of 1965, allowing certain loans to be rehabilitated up to two times instead of just once.

The section outlines changes to the Higher Education Act regarding interest capitalization on student loans. These changes ensure that interest on certain loans, like Federal PLUS and Income-Contingent Repayment loans, cannot be capitalized, meaning it can no longer be added to the principal balance, ultimately helping to limit the growth of overall loan debt.

This section of the bill repeals the origination fees for certain federal student loans. The change will apply to loans first disbursed, or applications for Federal Direct Consolidation Loans received, on or after July 1, 2024.

The amended section of the Higher Education Act of 1965 introduces a requirement for colleges to make annual risk-sharing payments to the Secretary of Education, starting in the 2024-2025 award year. These payments are based on the performance of defined student cohorts, and penalties for late or missed payments include losing the ability to issue student loans or participate in federal aid programs.

This section of the bill outlines the repeal of various education regulations related to the 90/10 rule, financial value transparency, gainful employment, and changes in ownership of educational institutions. It also details amendments to the Higher Education Act of 1965, including conditions for institution ownership changes, applications for conversion, incentive compensation rules, and criteria for financial responsibility, while establishing procedures for program reviews and imposing limits on fees for certain applications.

The section limits the U.S. Secretary of Education's power to make new rules or take executive actions that are economically significant and would increase subsidy costs. It ensures such actions undergo additional cost analysis and defines "economically significant" as impacting the economy by $100 million or more annually or affecting jobs, competition, health, or government operations in a significant way.

The section restricts the Secretary from proposing or issuing new regulations or executive actions that are considered economically significant and would increase subsidy costs. It also requires additional cost analyses for such regulations, and defines "economically significant" as having a major economic impact or negatively affecting vital sectors like public health or the environment.

The section discusses federal preemption for certain activities related to federal student loans, meaning state laws cannot impose additional requirements on how these loans are disclosed, communicated, serviced, or collected. It also specifies that student loan servicers must receive written guidance in certain forms before any new responsibilities or changes to their contracts take effect, ensuring they are not bound by informal notifications.

This section updates the rules for recognizing accrediting agencies under the Higher Education Act, ensuring they have the ability to operate independently and maintain standards that respect the religious missions of institutions while avoiding endorsement of specific ideologies. It also introduces new criteria for measuring student outcomes, allows states to designate accrediting bodies, and requires more public disclosure about accredited institutions, among other changes.

The amendments to Section 114 focus on modifying the structure and rules of the National Advisory Committee on Institutional Quality and Integrity (NACIQI). Key changes include updating the qualifications for committee members to prevent conflicts of interest, simplifying meeting agenda requirements, and extending the committee's authorization through September 30, 2028.

The text describes an initiative under the Higher Education Act that allows select educational entities to participate in a five-year experiment testing whether they can maintain high student achievement without official accreditation. The Secretary of Education will provide waivers to these entities, and select participants will be required to share financial risk and demonstrate potential cost savings.

The text describes amendments to the Higher Education Act of 1965, introducing competitive grants for eligible institutions and partnerships aimed at improving student success, particularly for high-need students. The amendments outline the definitions, conditions for grant applications, required and permissible uses of funds, and evaluation criteria, along with reserving funds for eligible Indian entities and setting specific grant and funding limits.

The Reverse Transfer Efficiency Act amends the General Education Provisions Act to allow colleges and universities to receive a student's course records from other institutions. This helps the student complete their degree or certificate if they give written consent.

The amendment to the Higher Education Act ensures that colleges cannot refuse to transfer a student’s credits just because the original institution is accredited by a different recognized agency. It requires fair policies regarding credit transfers between institutions of higher education.