The Credit for Prior Learning Act amends federal higher education law to help students get credit for knowledge and skills gained outside traditional classroom settings. The bill allows colleges to include up to $2,000 per year in student financial aid packages to cover the costs of prior learning assessments, such as exam fees, with this amount adjusted for inflation annually. Prior learning assessments must meet specific standards, evaluating actual competency rather than just experience, and successfully passing an assessment must result in the student receiving academic credit toward their degree without additional coursework. The legislation also requires college accrediting agencies to verify that institutions maintain adequate standards for these assessments and that institutions publicly disclose their assessment practices. Additionally, colleges must report data on how many students use prior learning credits, broken down by race, income level, and Pell Grant recipient status, to increase transparency. The bill takes effect on July 1, 2027.