Hearings to examine reforming financial transparency in higher education.

2025-11-06

Summary

The Senate Committee on Health, Education, Labor, and Pensions convened to discuss the critical issues of transparency and affordability within higher education [ 00:18:27-00:18:42 ] . While there was bipartisan consensus on the existence of these problems, members and witnesses presented differing views on the most effective solutions [ 00:19:11-00:19:11 ] [ 00:23:13-00:23:15 ]

. The discussion emphasized the need for students and families to have clear, actionable information to make informed decisions about college investments [ 00:18:43-00:18:43 ] [ 00:22:47-00:22:54 ] .

Need for Transparency in Higher Education Pricing

Students and families often lack sufficient information to make informed decisions about college, treating it as one of their largest financial investments without adequate comparative data [ 00:18:43-00:18:47 ] . Many Americans believe college is unaffordable and frequently overestimate its actual cost, hindering their decision-making process . To address this, proposals include the College Transparency Act (CTA), which aims to provide data on cost, enrollment, retention, completion, and post-college earnings for specific programs and universities [ 00:19:37-00:19:43 ] .

Witnesses highlighted that existing net price calculators are confusing, outdated, and often inaccurate, with a significant number of colleges failing to provide precise net prices on financial aid offers [ 00:37:47-00:37:47 ]

. Recommendations for improvement include standardizing financial aid offers, clearly separating grants from loans, and potentially requiring four-year price guarantees or binding net price calculators [ 00:27:35-00:27:42 ] . The goal is to empower students with clear, honest information at the right time to choose the best educational pathway for them .

Affordability of Higher Education

A central concern was the rising cost of college, which many speakers believe is becoming increasingly out of reach for working families [ 00:23:15 ]

. The average cost of attendance can be tens of thousands of dollars annually, while the maximum Pell Grant now covers only a quarter of necessary college costs, a historic low . This forces many students to struggle with basic needs such as housing, food, and childcare, impacting their ability to succeed academically .

Some expressed concerns that increased federal funding for higher education may inadvertently drive up prices, as institutions capture subsidies through higher tuition rather than reducing costs for students [ 00:37:00-00:37:00 ]

. Others argued that addressing affordability requires real investments, strengthening programs like Pell Grants, and viewing higher education as essential infrastructure . The discussion highlighted the need to focus not just on tuition and fees, but the full cost of attendance, including living expenses, which are often unpredictable and a major driver of student debt [ 00:42:58-00:43:08 ] .

Impact of Government Policies on College Costs and Access

Several speakers criticized the current administration's policies, citing over $6 billion in federal funding cuts to universities, which they argue support vital research and student aid . There were also concerns that the "reconciliation bill" cut hundreds of billions from higher education, increased student loan payments, and rolled back protections for defrauded students . Policies that limit federal loans for programs with lower post-graduation earnings were criticized for potentially harming essential but low-paying professions like early childhood education .

The Public Service Loan Forgiveness (PSLF) program was highlighted as a crucial tool for affordability, enabling individuals to pursue public service careers without being burdened by lifelong debt . However, concerns were raised about attempts to politicize or restrict eligibility for PSLF . The simplification of the FAFSA application process was praised for significantly reducing the time and effort required for students to apply for financial aid .

Alternative Pathways and Support Systems

The discussion included the importance of promoting alternative educational pathways, such as starting at community colleges before transferring to four-year institutions, utilizing dual enrollment in high school, and engaging in apprenticeships . These options can significantly reduce the cost of a degree while still providing valuable education and career opportunities .

The value of personalized support and financial literacy for students was emphasized, especially for first-generation students who may lack guidance on navigating the complexities of post-secondary education . Programs like the Detroit Promise and TRIO were cited as successful models for providing tuition assistance, wraparound supports, and critical guidance to students, ensuring they have access to educational opportunities regardless of their socioeconomic background [ 00:41:07-00:41:16 ]

[ 01:21:59-01:22:11 ] .

Summary of the Tone of the Meeting

The tone of the meeting was largely serious and concerned, reflecting the shared understanding among committee members and witnesses that the higher education system faces significant challenges related to cost and accessibility [ 00:18:42-00:18:43 ] [ 00:23:15 ]

. While there was a prevailing sense of urgency to address these issues, strong bipartisan disagreements emerged regarding the efficacy and implications of various federal policies and the appropriate level of government intervention [ 00:23:09-00:23:15 ] . Frustration was evident regarding the complexity of college pricing and the administrative burdens placed on institutions, alongside expressions of hope for data-driven, student-centric solutions [ 00:24:03-00:24:09 ] [ 00:27:33-00:27:33 ] .

Participants

Transcript

Thomas Massie

The Senate Committee on Health, Education, Labor, and Pensions will please come to order. This year, President Trump and Republicans delivered historic reforms to fix higher ed. ending inflationary loan programs, increasing Americans' access to educational opportunities. Now we must address the lack of transparency exacerbating a broken system. College is one of the largest financial investments many Americans make, but students have little information to inform decisions. You don't buy a car without comparing prices, quality, and financing options. The same is true for buying a home. Why can we not do this for higher ed? If a student wants to study engineering at College A, they should know their likelihood of graduating and the average income of graduates compared to College B. Families deserve to know what they're paying for and whether that investment pays off. Policymakers on both sides, Democrat, Republican, agree on the problems, and I'm pleased to say there are bipartisan solutions to address. President Trump's proposed compact for higher ed calls for more transparency, including for universities to publicly post average earnings from graduates in each program. I agree with the President that we need transparency in higher ed now more than ever. If the committee is serious about transparency, we must work to empower students with information to examine the entire process from initial college shopping to acceptance to enrollment. Senator Elizabeth Warren and I lead the College Transparency Act, CTA, which allows students to compare differences between prospective colleges and majors to see if the value of the degree is worth the price of admission. Specifically, the CTA makes available information on cost, enrollment, retention, completion, post-college earnings of a particular university and program of study with strict data security standards to protect Americans' privacy.

Thomas Massie

Additionally, when families shop for college, they can easily find the price of tuition. It's much harder to find the net price they will actually pay after accounting for grants from institutions, states, and the federal government. Congress directed colleges and universities to develop net price calculators in 08, a good idea and concept, but more than a decade later, these calculations do not work as intended. I hope to hear how we can improve these. Once a student is accepted by a school, they receive a financial aid offer. GAO reports that these offers can be confusing for parents and students. Senators Tuberville, Hassan, Grassley, and Smith have bipartisan and bicameral proposals to fix this. Students will be able to compare one aid offer to another aid offer and make the best decision. The reforms discussed today will not only give parents and students confidence in their college decision, but also make higher ed more attainable, creating more opportunities to achieve the American dream. And with that, I recognize Senator Kaine.

Timothy (Tim) Kaine

Thank you, Mr. Chair, and thank you to the witnesses. Before any young person signs their name on a student loan, they should know exactly what they're getting into. and every student and every family should understand the full cost of college before they take out even a single dollar in debt. And Mr. Chair, I agree with you that students and families need clear information. I'm a co-sponsor of the College Transparency Act that you mentioned, but just making the information more transparent doesn't really get at the real problem. The reality is that college just costs too much. Students today are struggling to meet their basic needs. Everyday expenses like housing, childcare, food, healthcare continue to rise while the power of programs such as Pell Grant have gone down. Students shouldn't have to worry about where their next meal's coming from, but three in five college students struggle to meet basic needs such as food and housing. The higher ed system just isn't working for everybody anymore. For working families, the dream of college is slipping farther and farther out of reach. The average cost of attendance for a full-time student living on campus is nearly $27,000 a year at a public university and $59,000 a year at a private university. Meanwhile, the maximum Pell Grant used to cover more than 75% of public college costs. Yet today, the maximum Pell Grant only covers a quarter of necessary college costs, the lowest level in history. It doesn't have to be that way. We can invest in students' basic needs through programs like Pell, through programs like SNAP. But unfortunately, we're going the wrong direction. Since taking office, the Trump administration has slashed more than $6 billion in federal funding from over 600 universities across all 50 states, including in Virginia. The funding is used to support lifesaving research, provide student aid, and supply other essential

Sign up for free to see the full transcript

Accounts help us prevent bots from abusing our site. Accounts are free and will allow you to access the full transcript.