Congress·In Committee·H.R. 3153

Congress targets a standard college financial aid offer form to make costs and loans clearer

Understanding the True Cost of College Act of 2025

11 months ago·View on Congress.gov

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

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.

EducationConsumer Protection

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(6)

Student Loans

Helps

Student

Helps

Child Tax Credit

Helps

Military Active

Helps

Military Veteran

Helps

Veterans Benefits

Helps

Milestones

2 milestones2 actions

May 1, 2025House

Referred to the House Committee on Education and Workforce.

May 1, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 3 months after the bill becomes law

Department of Education creates standard definitions for common aid-offer terms

Aid letters should stop using confusing or inconsistent words for the same thing, making it easier to compare schools.

Within 9 months after the bill becomes law

Draft Financial Aid Offer forms are created and prepared for consumer testing

Students and families may see early versions during testing at selected schools, but most people won’t see changes yet.

Testing lasts up to 8 months after the testing process is set

Pilot schools (16–24 institutions) use draft forms during the testing period

Some students at pilot schools may receive clearer, standardized aid offers sooner than everyone else.

Within 3 months after consumer testing ends

Final standard Financial Aid Offer form is published, with a public report

Families can see the final format, and schools can start preparing to switch over.

Start of the first award year after the Department finalizes the terminology and form

Colleges that receive federal student aid must start using the mandatory standard form

Most students applying for aid should begin receiving aid offers in the same format, making side-by-side comparison much easier.

Related News

6 articles

Inside Higher Ed·5 months ago

Transparency Now or Regulation Later

Opinion column arguing colleges should improve cost transparency; references the Understanding the True Cost of College Act of 2025 and its push to standardize financial aid offers so students can compare net price and costs.

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Chuck Grassley (Senate website)·11 months ago

Grassley, Smith Reintroduce Bipartisan Bills to Help Students Navigate College Costs

Release about a package of bills on college costs; includes support quotes for the Understanding the True Cost of College Act and describes its goal of clearer, comparable financial aid offers.

Congresswoman Young Kim (House website)·11 months ago

Rep. Young Kim, Colleagues Lead Bipartisan Bill to Make College Costs Transparent

Announcement of the bill’s introduction describing standardized “Financial Aid Offer” forms and clearer terminology to help families compare schools and understand costs.