H.R. 3153 — Understanding the True Cost of College Act of 2025

This section requires the Secretary of Education, in consultation with relevant federal agencies and stakeholders, to develop standard terminology and a standard form titled "Financial Aid Offer" for institutions of higher education to provide to students. The form must present information in a consumer-friendly manner, with costs listed first, followed by grants and scholarships under separate headings, and must include the following: (1) cost information, comprising direct costs (e.g., tuition and fees, institutionally provided housing and food) and indirect costs (e.g., off-campus housing and food, books and supplies, transportation) disaggregated by item as determined under Higher Education Act section 472 (20 U.S.C. 1087ll), the covered academic period, enrollment status assumptions, and whether costs are estimated or set; (2) aggregate grants and scholarships by source (e.g., federal Title IV, institutional, state, outside), with disclosures that they need not be repaid and conditions for ongoing institutional aid; (3) estimated net price (cost of attendance minus grants and scholarships), with a disclosure that it is an estimate not equivalent to the direct amount owed the institution; (4) recommended Federal Direct loans (excluding PLUS loans), labeled clearly as loans (subsidized or unsubsidized), with disclosures on repayment, borrower's ability to adjust amounts, annually set interest rates and fees (with a Department of Education link), and a link to the Department's loan repayment calculator; and (5) deadlines and a summary of the process for accepting, adjusting, or declining aid and next steps.

This section requires each institution of higher education receiving federal financial assistance under the Higher Education Act of 1965 to (1) use the financial aid offer form developed under section 484 of the Higher Education Opportunity Act (20 U.S.C. 1092 note) for all paper, mobile-optimized, or other electronic financial aid offers to students who apply for aid and are accepted; and (2) use the standard terminology and definitions developed by the Secretary of Education under subsection (e)(1) of that section 484 for all related communications. The requirements take effect for the first award year after the Secretary finalizes the form and terminology and are exempt from negotiated rulemaking under HEA section 492.