Understanding the True Cost of College Act of 2025

Summary

Requires the Department of Education to create a single, consumer-friendly Financial Aid Offer form and standard definitions, and then requires every college that receives federal student aid to use that form and terminology when sending aid offers. The form must list costs first, separate and itemize direct and indirect costs, itemize grants and scholarships by source, show an estimated net price, indicate enrollment status used for the estimate, and disclose whether amounts are estimates or set.

• Creates a single, standardized Financial Aid Offer form and uniform terminology developed by the Secretary of Education.
• Requires costs to be listed first and clearly separates direct (billed) and indirect (not billed) costs with itemized detail.
• Requires grants and scholarships to be itemized by source and accompanied by a disclosure that they are nonrepayable.
• Requires the offer to show the academic period covered, enrollment status used for estimates, and whether tuition/fees are estimated or set.
• Requires institutions receiving federal student aid to use the standardized form and terminology for all accepted applicants and in all delivery formats.
• Institutions must disclose conditions for ongoing institutional aid and how outside awards may affect institutional aid.
• Becomes effective at the start of the first award year after the Secretary finalizes the form and terminology.
• Regulatory provisions implementing institutional requirements are exempted from certain procedural rulemaking requirements.
• No new appropriations or funding streams are specified in the text provided.