Understanding the True Cost of College Act of 2025

This bill would require colleges and universities receiving federal financial aid to provide standardized financial aid offers using a new Department of Education-developed form. The form must clearly present costs of attendance (both direct and indirect), grants and scholarships (with disclosure they don't need repayment), net price, and loan terms including interest rates and repayment options. It would require institutions to disclose key information like the impact of private loans versus federal loans, default rates, and work-study opportunities in plain language. The bill affects all institutions of higher education that receive federal financial assistance, with the form to be developed through consumer testing with students and stakeholders.