Understanding the True Cost of College Act of 2025
Sponsored By: Representative Rep. Kim, Young [R-CA-40]
Introduced
Summary
A single, standard Financial Aid Offer form and terminology. This bill would require the Department of Education to design a clear, consumer-friendly “Financial Aid Offer” that lists costs first, separates grants and scholarships, and explains loans and repayment.
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- Students and families would get a uniform offer that disaggregates costs (tuition, fees, housing, food, books, supplies, computers, transportation), shows a net price as an annual estimate, and clearly notes that grants generally do not have to be repaid.
- Borrowers and parents would see recommended Title IV, Part D loan details (excluding Parent PLUS), with subsidized vs unsubsidized labels, a notice that loans must be repaid, a link to the Department’s repayment calculator, and guidance on private loans and Federal Direct PLUS options.
- Institutions would be required to use the standard form and terminology across paper and electronic communications when they receive federal financial assistance.
- The Secretary would finalize standard terminology within 3 months and run consumer testing with a diverse sample of 16 to 24 institutions over no more than 8 months, then publish testing results and a final form.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Clear college aid offer for students
If enacted, your school would have to give a standard Financial Aid Offer that lists total costs first. It would break out direct and indirect costs, show your grants and scholarships by source, and show a net price (cost minus grant and scholarship aid). The offer would include recommended federal student loans (not Parent PLUS), clearly labeled with repayment warnings and links to current rates and a repayment calculator. It would explain how to accept, change, or decline aid, deadlines, work-study limits and availability, and how and when you must pay school bills. Schools could not list dollar amounts for Parent PLUS or private loans on the offer, and if more than 30% of students borrow, the offer may show the school’s loan default rate. This would start in the first award year after the Department finalizes the standard form and terms.
Colleges must use the new aid form
If enacted, any college that gets federal funds would have to use the standard Financial Aid Offer and terms for paper and electronic offers. Electronic offers would need a delivery confirmation, and the school must state that getting an offer is not the same as accepting or rejecting aid. Schools could add extra information if they use the standard terms and do not misstate costs, aid, or net price. They could remove items that do not apply to the student or programs the school does not offer. This would start in the first award year after the Department finalizes the standard form and terms.
Education Department to build standard aid form
If enacted, the Education Department would set standard terms within 3 months of enactment. It would design draft forms and start consumer testing within 9 months, and testing would last up to 8 months after it starts. A pilot with 16 to 24 diverse colleges would be required. The Department would submit the final form and a report to Congress within 3 months after testing ends.
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Sponsors & CoSponsors
Sponsor
Rep. Kim, Young [R-CA-40]
CA • R
Cosponsors
Rep. Krishnamoorthi, Raja [D-IL-8]
IL • D
Sponsored 5/1/2025
Rep. Pappas, Chris [D-NH-1]
NH • D
Sponsored 11/4/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 11/4/2025
Roll Call Votes
No roll call votes available for this bill.
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