Amount of need; cost of attendance; median cost of college

(a) Amount of need Section 471 of the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by amending paragraph (1) to read as follows: (1) (A) for award year 2025–2026, the cost of attendance of such student; or (B) for award year 2026–2027, and each subsequent award year, the median cost of college of the program of study of such student, minus. (b) Cost of attendance of a program of study (1) Determination of cost of attendance of a program of study (A) In general Section 472(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)) is amended— (i) in paragraph (1), by striking carrying the same academic workload and inserting enrolled in the same program of study; (ii) in paragraph (2), by striking same course of study and inserting same program of study; and (iii) in paragraph (14), by striking program and inserting program of study. (B) Effective date The amendments made by subparagraph (A) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965. (2) Disclosure Section 472(c) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(c)) is amended— (A) by inserting of each program of study at the institution after cost of attendance; and (B) by striking of the institution and inserting of such programs of study at the institution. (c) Determination of median cost of college Part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by inserting after section 472 (as so amended), the following: 472A. Determination of median cost of college (a) In general For the purpose of this title, the term median cost of college, when used with respect to a program of study, offered by one or more institutions of higher education for an award year, means the median of the cost of attendance of the program of study (as determined under section 472) across all institutions of higher education offering such a program of study for the preceding award year. (b) Program of study defined In this section and section 472, and part D: (1) In general The term program of study — (A) means an eligible program at an institution of higher education that is classified by a combination of— (i) one or more CIP codes; and (ii) one credential level, determined by the credential awarded upon completion of the program; and (B) does not include a program of study abroad. (2) CIP code The term CIP code means the six-digit taxonomic identification code assigned by an institution of higher education to a specific program of study at the institution, determined by the institution of higher education in accordance with the Classification of Instructional Programs published by the National Center for Education Statistics. (3) Credential level (A) In general The term ‘credential level’ means the level of the degree or other credential awarded by an institution of higher education to students who complete a program of study of the institution. Each degree or other credential awarded by an institution shall be categorized by the institution as either undergraduate credential level or graduate credential level. (B) Undergraduate credential When used with respect to a credential or credential level, the term ‘undergraduate credential’ includes credentials such as an undergraduate certificate, an associate degree, a bachelor’s degree, and a post-baccalaureate certificate (including the coursework specified in paragraphs (3)(B) and (4)(B) of section 484(b)). (C) Graduate credential When used with respect to a credential or credential level, the term ‘graduate credential’ includes credentials such as a master’s degree, a doctoral degree, a professional degree, and a postgraduate certificate.. (d) Exemption of certain assets (1) In general Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended— (A) by striking net value of the and inserting the following: net value of— (A) the; (B) by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (B) a family farm on which the family resides; or (C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.. (2) Effective date The amendments made by paragraph (1) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965.

(a) Amount of need Section 471 of the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by amending paragraph (1) to read as follows: (1) (A) for award year 2025–2026, the cost of attendance of such student; or (B) for award year 2026–2027, and each subsequent award year, the median cost of college of the program of study of such student, minus. (b) Cost of attendance of a program of study (1) Determination of cost of attendance of a program of study (A) In general Section 472(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)) is amended— (i) in paragraph (1), by striking carrying the same academic workload and inserting enrolled in the same program of study; (ii) in paragraph (2), by striking same course of study and inserting same program of study; and (iii) in paragraph (14), by striking program and inserting program of study. (B) Effective date The amendments made by subparagraph (A) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965. (2) Disclosure Section 472(c) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(c)) is amended— (A) by inserting of each program of study at the institution after cost of attendance; and (B) by striking of the institution and inserting of such programs of study at the institution. (c) Determination of median cost of college Part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by inserting after section 472 (as so amended), the following: 472A. Determination of median cost of college (a) In general For the purpose of this title, the term median cost of college, when used with respect to a program of study, offered by one or more institutions of higher education for an award year, means the median of the cost of attendance of the program of study (as determined under section 472) across all institutions of higher education offering such a program of study for the preceding award year. (b) Program of study defined In this section and section 472, and part D: (1) In general The term program of study — (A) means an eligible program at an institution of higher education that is classified by a combination of— (i) one or more CIP codes; and (ii) one credential level, determined by the credential awarded upon completion of the program; and (B) does not include a program of study abroad. (2) CIP code The term CIP code means the six-digit taxonomic identification code assigned by an institution of higher education to a specific program of study at the institution, determined by the institution of higher education in accordance with the Classification of Instructional Programs published by the National Center for Education Statistics. (3) Credential level (A) In general The term ‘credential level’ means the level of the degree or other credential awarded by an institution of higher education to students who complete a program of study of the institution. Each degree or other credential awarded by an institution shall be categorized by the institution as either undergraduate credential level or graduate credential level. (B) Undergraduate credential When used with respect to a credential or credential level, the term ‘undergraduate credential’ includes credentials such as an undergraduate certificate, an associate degree, a bachelor’s degree, and a post-baccalaureate certificate (including the coursework specified in paragraphs (3)(B) and (4)(B) of section 484(b)). (C) Graduate credential When used with respect to a credential or credential level, the term ‘graduate credential’ includes credentials such as a master’s degree, a doctoral degree, a professional degree, and a postgraduate certificate.. (d) Exemption of certain assets (1) In general Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended— (A) by striking net value of the and inserting the following: net value of— (A) the; (B) by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (B) a family farm on which the family resides; or (C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.. (2) Effective date The amendments made by paragraph (1) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965.