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S 1558119th CongressIntroduced
Understanding the True Cost of College Act of 2025
Introduced: Oct 29, 2025
EducationFinancial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
This legislation mandates a standardized financial aid offer form for all US colleges to improve transparency, requiring clear breakdowns of costs, grants, scholarships, and loan information with specific disclosures about net price calculations, repayment obligations, and comparisons between federal and private loan options to prevent student debt traps.
Key Points
- 1The bill establishes a uniform financial aid offer form with standardized terminology that must clearly separate costs from aid and include detailed net price calculations for each student.
- 2It requires explicit disclosures about loan repayment obligations, interest rates, and the risks of private loans compared to federal student loans with mandated links to repayment calculators.
- 3The legislation mandates consumer testing of the form design with diverse student populations including low-income and first-generation students before final implementation by the Department of Education.
Impact Areas
College students and families navigating financial aid decisionsAll institutions of higher education including community colleges and universitiesDepartment of Education which must develop and enforce the standard formPrivate lenders who must comply with new disclosure requirements for education loans
Generated by legislative-analysis-v1 on Nov 8, 2025