Credit for Prior Learning Act

This Act may be cited as the Credit for Prior Learning Act.
Section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll), as amended by section 702 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is amended in subsection (a)—
in paragraph (13), by striking and after the semicolon;
in paragraph (14), by striking the period and inserting ; and; and
by adding at the end the following:
an allowance of not more than $2,000 per award year (adjusted for inflation in years following the 2025–2026 award year) for reasonable costs, including test fees, associated with the assessment of prior learning as part of one or more eligible credit for prior learning assessments.
Section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) is amended by adding at the end the following:
For purposes of this title, the term eligible credit for prior learning assessment includes an evaluation of knowledge or skills learned outside of an institution of higher education—
that assesses for evidence of learning, not for experience or time spent;
that has been determined by the institution to be based on generally accepted criteria by relevant subject matter experts; and
for which successful assessment will result in the institution awarding academic credit (without the student having to enroll in additional coursework to achieve such academic credit) to meet all or part of the program requirements toward completion.
Section 496(c) of the Higher Education Act of 1965 (20 U.S.C. 1099b(c)) is amended—
in paragraph (8), by striking and after the semicolon;
in paragraph (9)(B), by striking the period and inserting ; and; and
by adding at the end the following:
confirms, as part of the agency’s or association’s review for accreditation or reaccreditation, that the institution has sufficient standards for assessment of prior learning—
that assess for skills, competencies, and knowledge at levels generally accepted by subject matter experts; and
that are publicly disclosed.
Section 132(i)(1) of the Higher Education Act of 1965 (20 U.S.C. 1015a(i)(1)) is amended by adding at the end the following:
The number of students receiving credit for prior learning, disaggregated by race, income, and status as a Federal Pell Grant recipient.
The average number of credits awarded per student seeking credit for prior learning, disaggregated by race, income, and status as a Federal Pell Grant recipient.
Unless otherwise specified, this Act, and the amendments made by this Act, shall take effect on July 1, 2027.