Understanding the True Cost of College Act of 2025

Key Points

• Congress would require colleges that take federal student aid to use one clear, standard “Financial Aid Offer” form, so families can compare schools more easily.
• The form must list costs first (like tuition, fees, housing, food, books, and transportation), then list grants and scholarships separately, so “free money” isn’t mixed with loans.
• Schools would have to show an estimated “net price” (cost minus grants/scholarships) and clearly label any recommended student loans as loans, with basic repayment and interest info.
• The offer must explain how to accept, change, or decline aid, include deadlines and contact info, and note that aid amounts can change by year, program, or enrollment status.
• The Education Department would test draft versions with students and families, then colleges would have to start using the final form in the first school-aid year after it’s finalized.