College Affordability and Transparency Act of 2007

College Affordability and Transparency Act of 2007 - Amends the Higher Education Act of 1965 to direct the Commissioner of Education Statistics, in redesigning the College Opportunity On-Line (COOL) website, to identify and include the data of greatest importance to prospective and enrolled students, and their families.

Requires the Secretary of Education to publish, on such website, additional college affordability information comparing the change in each school's student costs with the change in the consumer price index (CPI) over the most recent three-year period.

Requires a school whose prices increase at more than twice the percentage change in the CPI over such time period to: (1) report an explanation to the Secretary; and (2) establish a quality-efficiency task force to review the school's operations, if the school's price increase is in the top 5% of such schools. Places schools on affordability alert status if their prices continue to exceed the CPI by such amount for two additional years. Requires publication of the explanatory reports, task force analyses, and affordability alerts on the COOL website.

Changes the student aid recipient survey to require that it be conducted at least once every four, rather than every three, years and include information on the effect students' costs and debt have on student school and career choices.

Authorizes the Secretary to select up to 100 schools to participate in a College Affordability Demonstration Project allowing increased innovation in the delivery of higher education and student financial aid to test the ability of innovations such as accelerated degree programs, distance education, and school collaborations with other schools and organizations, to reduce costs for students and schools.