S. 1558 — Understanding the True Cost of College Act of 2025

This section requires the Secretary of Education, in consultation with representatives of students, institutions, financial aid experts, and other specified stakeholders, to develop standard terminology and a standard form titled "Financial Aid Offer" for institutions of higher education to provide financial aid information to students. The form must present information in a consumer-friendly manner—listing costs first, followed by grants and scholarships under separate headings—and include (1) estimated cost of attendance disaggregated into direct costs (i.e., tuition and fees; institutionally provided housing and food) and indirect costs (i.e., off-campus housing and food; books, supplies, and equipment; transportation), along with the covered academic period, enrollment status assumptions, and whether costs are estimated or set; (2) aggregate grants and scholarships by source (i.e., federal, institutional, state, outside), with disclosures that they need not be repaid and conditions for ongoing institutional aid; (3) estimated net price, calculated as cost of attendance minus grants and scholarships, with a disclosure that it is an estimate not equal to amounts owed the institution; (4) recommended Federal Direct loans (excluding PLUS loans), labeled clearly as loans (subsidized or unsubsidized), with disclosures on repayment, borrow amounts, interest rates and fees (with link to Department of Education information), and a link to the Department's loan repayment calculator; and (5) deadlines and steps for accepting, adjusting, or declining aid.

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 (i.e., model form for standardizing aid award notifications, also known as the FAFSA Shopping Sheet) for all paper, mobile-optimized, or electronic offers to accepted students who apply for aid, and (2) use standard terminology and definitions developed by the Secretary of Education 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 §492.