Understanding the True Cost of College Act of 2025

This bill would make every college that gets federal funds use one clear, standard financial aid offer so families can compare schools and understand the real cost. The Education Department would create the form and common terms with input from students, families, and schools, test draft versions, and then require colleges to use the final version .

The offer would put costs first, then list grants and scholarships you don’t repay, show your estimated “net price,” and clearly mark any loans as loans with reminders that they must be repaid plus links to interest rates and a repayment calculator . It would also explain deadlines and steps to accept, change, or decline aid, when bills are due, and where to get help. Students would also see standard notices about possible education benefits for veterans and service members .

Key points

• Who is affected: Students and families receiving aid offers, and all colleges that receive federal funds must use the standard form and terms.
• What changes: The same, easy-to-read format across schools for paper and electronic offers; costs shown first; free aid separated from loans; loans clearly labeled with repayment info; standard notices about veteran and military benefits .
• Flexibility with guardrails: The Department may create separate forms for undergrad vs. grad or first-time vs. returning students. Schools may add extra information if it uses the standard terms and is not misleading, and may remove items that don’t apply to a student .
• When it starts: Draft forms are designed within 9 months of enactment; testing runs up to 8 months with 16–24 diverse colleges; the final form is posted within 3 months after testing. Colleges must use it beginning the first award year after the form is finalized .