Bill · S. 1558· Senate(119-S-1558)
Understanding the True Cost of College Act of 2025
- Introduced
- 5/1/2025
- Last activity
- 5/1/2025 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Chuck Grassley
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
The Understanding the True Cost of College Act of 2025 requires the Secretary of Education to develop a standard financial aid offer form. This form must include clear, consumer-friendly information regarding direct and indirect costs, grants, scholarships, and loans. The goal is to provide students and families with a simple way to understand the net price of attendance. The Secretary will develop these standards through consultation with various stakeholders and consumer testing. Once finalized, institutions receiving Federal financial assistance must use this standard form and its specific terminology.
Yes· 3 of 9
Does this give people more protection from unfair business practices?+7
The bill requires standardized, consumer-friendly disclosures regarding the true cost of college and loan terms to prevent misinformation.
Would students be better off under this?+6
Students benefit from standardized, easily understandable information regarding the net price and specifics of their financial aid offers.
Would people in their twenties and thirties be better off under this?+5
Prospective students receive clearer information on costs, loans, and work-study opportunities to aid their future planning.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Transparency of Costs: The bill requires the form to list direct costs (like tuition and fees) and indirect costs (like books and transportation) separately so students know exactly what they are paying for (Section 2, subsection (b)(1)).
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Clearer Understanding of Aid: The form must clearly differentiate between grants and scholarships that do not have to be repaid and loans that must be repaid (Section s2, subsections (b)(2) and (b)(4)).
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Accurate Net Price Calculation: Students will receive an estimated net price, which is the cost of attendance minus grants and scholarships, helping them understand their actual expected out-of-pocket expenses (Section 2, subsection (b)(3)).
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Better Loan Awareness: The act requires disclosures regarding loan interest rates, fees, and a link to a repayment calculator to help students make informed borrowing decisions (Section 2, subsection (b)(4)).
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Information on Employment Opportunities: The form will include details on work-study opportunities, including maximum earnings and how money is disbursed (Section 2, subsection (c)(3)).
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Protection for Dependent Students: For students with parents, the form must include information about Federal Direct PLUS Loans and notify them of increased loan eligibility if parents cannot borrow under that program (Section 2, subsection (d)(8)).
Potential Negative Impacts for People
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Requirement to Repay Loans: The bill explicitly requires the inclusion of disclosures stating that loans must be repaid (Section 2, subsection (b)(4)(B)).
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Uncertainty of Aid Amounts: The form must include an explanation that financial aid amounts may change based on the academic period or program (Section 2, subsection (b)(1)(B)).
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Work-Study Availability: While providing information on work-study, the bill notes that these opportunities may be subject to the availability of jobs once a student enrolls (Section 2, subsection (c)(3)(B)(i)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+6Good For Low Income Households+5Good For Young Adults+5Good For Veterans+4
- Economy And Finance
- Improves Consumer Protection+7
- Education And Technology
- Improves College Affordability+4Improves Data Privacy+1
- Governance And Ideology
- Improves Government Transparency+5
- Social Issues And Justice
- Improves Poverty Reduction+3
- 5/1/2025
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Maggie HassanDemocrat · New Hampshire
Tina SmithDemocrat · Minnesota
Tommy TubervilleRepublican · Alabama