H.R. 3153: Understanding the True Cost of College Act of 2025

The Understanding the True Cost of College Act of 2025 is proposed legislation aimed at standardizing the financial aid offer process for students attending higher education institutions in the United States. This legislation mandates the development of a standardized financial aid offer form that institutions receiving federal financial assistance must use.

Key Provisions of the Bill

1. Standard Financial Aid Offer Form

The Secretary of Education, in collaboration with various stakeholders, is required to create a uniform terminology and a standardized form for financial aid offers. This will ensure that all financial aid offers are clear, consistent, and easy to understand. The form will include:

• Cost Information: Details about the total estimated cost of attendance, including direct costs (tuition, fees, housing, and food) and indirect costs (books, supplies, and transportation).
• Grants and Scholarships: A summary of any grants and scholarships available to the student, clearly indicating which do not require repayment.
• Net Price: The estimated amount the student or family has to pay after accounting for grants and scholarships.
• Loan Information: Details about any recommended loans, including terms, interest rates, repayment obligations, and links to informational resources.
• Next Steps: Guidance on how to accept, adjust, or decline financial aid and details about the payment process.
• Additional Information: Any other relevant information that can help students make informed borrowing decisions.

2. Standardization Requirements

The bill stipulates that the standardized financial aid offer form must:

• Include plain language summaries of the terms and conditions of financial aid.
• Use consistent headings and formatting to enhance clarity.
• Differentiate between types of aid offered, such as grants versus loans.

3. Consumer Testing

The Secretary of Education must conduct consumer testing with actual students to ensure that the new financial aid offer forms are user-friendly and effective in conveying important information.

4. Implementation Timeline

The bill outlines a timeline for the development and implementation of the standardized form, requiring updates to be finalized within a specific timeframe after the legislation is enacted.

5. Compliance Requirement for Institutions

After the standard form is developed, all higher education institutions that receive federal financial assistance must use this form in their financial aid communications starting from the first award year following the finalization of the form.

Relevant Companies