Understanding the True Cost of College Act of 2025

Increased Clarity on Costs: The bill requires the form to list direct costs, such as tuition and fees, and indirect costs, such as books and transportation, in a simple manner (Section 2(b)(1)).

Transparent Financial Aid Information: The form must clearly separate and label grants and scholarships that do not have to be repaid (Section 2(b)(2)).

Improved Understanding of Net Price: The bill requires a disclosure of the estimated net price, which helps families understand what they might actually have to pay (Section 2(b)(3)).

Clearer Loan Information: Institutions must use the word "loan" clearly and label subsidized versus unsubsidized loans so students understand what they are borrowing (Section 2(b)(4)).

Better Planning Tools: The form must include a link to a repayment calculator to help students estimate their future costs (Section 2(b)(4)(D)).

Informed Borrowing Decisions: The form will include specific data such as the institution's cohort default rate, the percentage of students who borrow loans, and median loan debt at graduation (Section 2(b)(6)).

Guidance on Private vs. Federal Loans: The bill requires a disclosure that Federal student loans generally offer more favorable terms than private loans (Section 2(c)(2)(A)).

Notification of Education Benefits: The Secretary will establish language notifying students of potential benefits available to them, such as those for veterans or servicemembers (Section 2(e)(3)).