Understanding the True Cost of College Act of 2025

# Understanding the True Cost of College Act of 2025 - Summary **What the Bill Does** This bill would require the Department of Education to create a standardized financial aid form and terminology that all colleges must use when offering financial aid to students. Instead of each school using its own confusing financial aid letters with different terms and formats, every college would present aid offers in the same way. The form would clearly show the total cost of attendance, how much the student/family would actually need to pay (net price), and the terms and conditions of any aid offered. **Who It Affects** This bill primarily affects college students and their families, who would benefit from clearer, easier-to-compare financial aid offers.

It also affects colleges and universities that participate in federal student aid programs, which would be required to adopt the standardized form. High school and college counselors would also be involved in testing and refining the form. **Key Provisions** Before finalizing the form, the Department of Education must test it with students, families, counselors, colleges, and consumer advocacy groups to ensure it's user-friendly and helpful. Once approved, any college accepting federal student aid would be required to use the standardized form and terminology when presenting financial aid packages to students. **Current Status** The bill is currently in committee and has not yet been voted on.