Understanding the True Cost of College Act of 2025
Sponsored By: Senator Chuck Grassley
Introduced
Summary
Standardized Financial Aid Offer
Show full summary
This bill would create a uniform, consumer-tested "Financial Aid Offer" that presents college costs, grants, loans, and next steps in a clear order so students and families can compare offers easily.
- Students and families would receive a single, plain-language form that lists costs first, then grants and scholarships, shows a net price estimate, and explains loans and repayment. The form must cover six primary content categories including direct and indirect costs.
- People considering private education loans would get required disclosures about those loans, limits on how institutions may present or guarantee them, and information on how private borrowing can affect federal aid and repayment rights.
- Colleges and financial aid offices would have to adopt standard terminology and the form if they get federal aid. The Secretary would pilot the form with 16–24 institutions and limit consumer testing to eight months before finalizing the design.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
One standard financial aid form
If enacted, every college that gets federal aid would have to use a single, consumer-tested Financial Aid Offer. The form would list itemized direct and indirect costs and an estimated net price. It would separate grants from recommended Title IV loans and show loan types, repayment links, and deadlines. Schools could not list Parent PLUS or private loan amounts on the offer and must include instructions for accepting or declining aid.
Standardize financial aid terminology
If enacted, the Education Secretary would set plain-language names and definitions for Financial Aid Offers. The Secretary would produce draft forms within 9 months. The Secretary would run consumer testing with 16–24 institutions and diverse students for up to 8 months. The final form and a test report would be sent to Congress within 3 months after testing ends.
Change to aid rulemaking process
If enacted, Section 492 procedural rules would not apply to regulations for the Financial Aid Offer. This would change how the Department of Education writes those rules. It may speed rulemaking but would limit some normal procedural protections.
Sponsors & CoSponsors
Sponsor
Chuck Grassley
IA • R
Cosponsors
Tina Smith
MN • D
Sponsored 5/1/2025
Maggie Hassan
NH • D
Sponsored 5/1/2025
Tommy Tuberville
AL • R
Sponsored 5/1/2025
Roll Call Votes
No roll call votes available for this bill.
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