The landscape of higher education funding may be about to shift significantly. Sens. Amy Klobuchar (D-Minn.) and Tim Sheehy (R-Mont.) have introduced a bipartisan bill that could make college more affordable for thousands of students by expanding the use of federal financial aid.
The Credit for Prior Learning Act (S. 4897), introduced on June 24, proposes allowing students to use up to $2,000 per award year of federal financial aid to cover the costs of prior learning assessments. These assessments evaluate knowledge gained outside traditional classrooms, such as through work experience, military service, or other training programs.
The potential impact of prior learning assessments
Prior learning assessments (PLA) can significantly reduce the time and cost of earning a college degree. According to research from the Council for Adult and Experiential Learning (CAEL) and the Western Interstate Commission for Higher Education (WICHE) adults who earn 12 or more PLA credits save an average of 9 to 14 months of college time and $1,500 to $10,200 in tuition. Moreover, these students are 17% more likely to graduate with even higher completion rates among community college students and Pell Grant recipients.
The bill defines eligible assessments as those that evaluate evidence of learning, meet standards set by subject matter experts, and result in academic credit without requiring additional coursework. This includes a variety of assessment methods:
Types of prior learning assessments
CLEP exams Offered by The College Board, these exams cover over 30 subjects and cost $97 each plus additional test center fees. Students can obtain vouchers covering exam fees through free online courses offered by Modern States.
DSST exams Originally designed for military personnel but open to all, DSST offers over 30 exams at $100 each plus test site fees. These are accepted at more than 1,500 colleges nationwide.
TECEP exams Provided by Thomas Edison State University, these exams cost $53 per credit for lower-level subjects and $80 per credit for upper-level courses.
Portfolio assessments These involve faculty reviews of documentation demonstrating work and training experience. Costs vary significantly by institution, with examples ranging from $30 per credit at the University of Rhode Island to a flat $390 fee at Penn State, regardless of whether credit is awarded.
Challenge exams and training evaluations Many colleges offer their own faculty-developed exams with varying fees. The bill also covers institutional evaluations of employer and military training, often based on recommendations from the American Council on Education (ACE).
The legislative journey and potential outcomes
The bill has been referred to the Senate Health, Education, Labor and Pensions Committee, where neither sponsor currently holds a seat. While many standalone higher education bills stall in committee, cost-of-attendance adjustments like this one sometimes find their way into larger appropriations packages. If enacted, the changes would take effect on July 1, 2027.
This legislative proposal comes at a time when public opinion about the importance of traditional four-year degrees is shifting. A 2026 Pew Research Center survey found that only about a quarter of Americans considered a four-year college degree extremely or very important for obtaining a well-paying job. As the cost of tuition continues to rise, alternative pathways to degree completion are gaining traction.
For many adult learners returning to complete their degrees, prior learning assessments offer a valuable opportunity to convert work experience into academic credit. The proposed legislation could make this pathway more accessible and affordable, potentially accelerating degree completion and reducing the financial burden on students.
As the bill moves through the legislative process, higher education stakeholders will be watching closely to see if this bipartisan effort can successfully expand access to federal financial aid for prior learning assessments.
