Senate Hearing on Higher Ed Financial Transparency Touts Bipartisan Solutions
By Hugh T. Ferguson, NASFAA Managing Editor
Senators convened a brief hearing on Thursday to collect testimony from higher education experts to inform Congress on how it can address affordability concerns and provide clarity on college pricing.
In kicking off the conversation, Sen. Bill Cassidy (R-La.), chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, highlighted bipartisan proposals seeking to provide more transparency in college pricing and enable students to evaluate the value of their prospective degree. Those efforts include the College Transparency Act, the Net Price Calculator Improvement Act, and the Understanding the True Cost of College Act.
Sen. Tim Kaine (D-Va.) agreed with Cassidy’s assessment that higher education needs to provide students and families with clearer and more transparent information about costs associated with college, but stressed that investments in higher education need to be increased.
Kaine particularly pointed out the diminishing purchasing power of the Pell Grant and rising costs associated with student basic needs, including food and housing.
While much of the hearing covered bipartisan solutions, Democrats were critical of the One Big Beautiful Bill Act (OBBBA), and how provisions within the law – some of which are currently under discussion during the Department of Education’s (ED) Reimagining and Improving Student Education (RISE) Committee negotiated rulemaking (neg reg) – will likely impact student loans. Kaine specifically took issue with “artificial limits” on borrowing for certain programs, as well as the new accountability framework which could exacerbate workforce shortages in lower-paying professions, such as early childhood education.
Kaine argued that the administration was seeking to “weaponize” the Public Service Loan Forgiveness (PSLF) program through final regulations that aim to limit employer eligibility with new conditions. He also expressed concern over application processing times.
Republicans on the committee expressed concern over inflationary pressures and regulations from the federal government, causing institutions to expand their administrative offices as drivers for increased costs in the sector.
Cassidy also expressed concerns about expanding support programs and gave an example of one student using either Pell Grant funds or unrestricted scholarship money to purchase furniture. They ultimately left college with a lot of debt.
“The more money you provide, the more people will take it up, even if it is not necessary, rather it is just optional,” Cassidy said. “My wife, she borrowed money as a medical student and went to Australia, I chuckle because I paid off that loan.”
While senators and experts presented different policy solutions and priorities, all seemed to agree that the process of accessing and assessing student aid has significant issues.
Justin Draeger, senior vice president for affordability at Strada Education Foundation, and NASFAA’s former president & CEO, explained that one of the key issues facing students and families is trying to grasp what is affordable within higher education. He explained that without clear and consistent aid offers, students and families will continue to have a difficult time actually gauging what costs and benefits are associated with a given program.
“Students and families believe college costs too much; they don’t have an accurate idea of how much it actually costs, and when they guess, they generally guess too high,” Draeger said. “That misunderstanding works against them from even applying or making choices that would serve their best needs.”
Draeger stressed that Congress should work to develop tools that enable students to clearly see the value of their degree and have a handle on the costs associated with a given program across varying institutions.
In the meantime, he said that hundreds of colleges already signed on to the College Cost Transparency Initiative (CCT), an effort to provide students with financial aid information that is clear, accurate, and transparent about the cost of college.
“By providing students and families with the right information, at the right time, they will be able to make the right decision for them,” Draeger said.
Brenda Hicks, director of financial aid at Southwestern College in Winfield, KS and NASFAA's 2020-21 national chair, explained how her institution provides students and families with a nearly full picture of direct costs and how they have seven versions of their financial aid offers that are unique to different student populations at their school.
Hicks urged the committee to work on improving the net price calculator and, at a minimum, allow families to easily compare direct and indirect costs. She also urged members to rethink the way program data is represented on the College Scorecard, and to provide a simple calculator for students to assess their student loan repayment options before they enter repayment.
In terms of FAFSA simplification, Hicks also explained that the rollout of the 2026-27 form has been much smoother. She mentioned that during a recent financial aid night at a local high school, it only took 30 minutes to work through student’s forms. During the previous cycle, financial aid nights lasted hours.
Hicks stressed that the more Congress could do to reduce reporting burdens and more clearly present information to students, where there are standard definitions and terms, will ultimately make the financial aid process less daunting and enable aid professionals to better guide students and families.
“Any policy that helps me spend more time on the interaction of a student is a good policy,” she said.
Publication Date: 11/7/2025
Brenda B | 11/17/2025 8:54:50 AM
Great job Brenda! I like your last quote! Well said!
Tony L | 11/7/2025 10:25:23 AM
Well done, Brenda! It makes me feel good anytime Congress taps Financial Aid Administrators for feedback... now, if they would only take our recommendations under advisement...
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