Understanding the True Cost of College Act of 2025
Understanding the True Cost of College Act of 2025
Plain Language Summary
# Understanding the True Cost of College Act of 2025 - Summary **What the Bill Would Do** This bill would require the Department of Education to create a standardized form and consistent terminology for college financial aid offers. Currently, colleges use different formats and language when presenting financial aid packages to students, which can make it difficult to compare offers from different schools. Under this bill, all colleges participating in federal student aid programs would be required to use the same official form, making it easier for students and families to understand exactly what they're being offered and what they'll actually need to pay. **Who It Affects and Key Provisions** The bill primarily affects college students and their families who are applying for financial aid, as well as all colleges and universities that accept federal student aid.
The standardized form would include key information such as the total cost of attendance, the actual net price a student or family needs to pay, and the specific terms and conditions of any financial aid. Before finalizing the form, the Department of Education would test it with students, families, college counselors, and nonprofit consumer groups to ensure it's clear and user-friendly. **Current Status** The bill is currently in committee (S 1558 in the Senate) and has not yet been voted on by Congress.
CRS Official Summary
Understanding the True Cost of College Act of 2025This bill requires standardized financial aid terminology and offer forms.Specifically, the Department of Education (ED) must develop standard terminology and a format for financial aid offer forms based on recommendations from representatives of certain groups, including students, veterans, and institutions of higher education (IHEs).The consumer-friendly form must include specified details and disclosures, including the estimated cost of attendance, the net price that a student or family is estimated to pay, and the terms and conditions of financial aid.In addition, ED must (1) test the form with representatives of students, students' families, IHEs, secondary school and postsecondary counselors, and nonprofit consumer groups; and (2) use the results to develop the final form.Each IHE that participates in federal student aid programs must (1) use the standard form when offering financial aid to students, and (2) use the standard terminology and definitions developed by ED for all communications related to financial aid offers.
Latest Action
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.