The College Transparency Act mandates the establishment of a secure and privacy-protected postsecondary student-level data system by the Commissioner of the National Center for Education Statistics within four years. This system aims to accurately evaluate student enrollment, progression, completion, and postcollegiate outcomes, as well as higher education costs and financial aid. It is designed to enhance transparency for students and families, support institutional improvement, and reduce the reporting burden on institutions of higher education.

The Commissioner will develop this system with a focus on user needs, employing modern, privacy-enhancing technology, and adhering to federal data minimization practices. A Postsecondary Student Data System Advisory Committee, including representatives from diverse institutions, students, and privacy experts, will be established to consult on data elements and system development. The system will collect student-level data on enrollment, persistence, retention, transfer, and completion, disaggregated by various categories like race, age, and financial aid status, but explicitly prohibits the collection of sensitive data such as individual health information, citizenship status, or course grades.

To provide comprehensive insights, the bill requires periodic, secure data matching with other federal agencies like the Treasury, Veterans Affairs, and the Census Bureau. These matches will enable reporting on aggregate program- and institution-level earnings, employment, and loan repayment outcomes, while ensuring no single linked federal database is created. The Commissioner must also establish a process for students to request access to their personal information for inspection and correction.

Summary aggregate information, devoid of personally identifiable information, will be made publicly available through a user-friendly website and analytic tool. This public data will cover student access, progression, completion, costs, and postcollegiate outcomes, allowing for customizable comparisons across institutions and programs. Importantly, the bill prohibits the sale of data, its use for law enforcement or immigration activities, or for creating federal ranking systems of institutions.

Finally, all institutions participating in Title IV federal student aid programs will be required to submit data to this system, with voluntary participation for others. The Act also repeals the existing prohibition on student data systems and includes provisions to streamline data collection and minimize duplicative reporting for institutions.