The "Understanding the True Cost of College Act of 2025" requires the Secretary of Education to develop a standard financial aid offer form and consistent terminology. This development process will involve extensive consultation with diverse stakeholders, including students, veterans, institutions of higher education, financial aid experts, and consumer groups, to ensure the form is clear and understandable. The standardized form, titled "Financial Aid Offer," must present cost information first, clearly separating direct costs (e.g., tuition, fees, institution-billed housing) from indirect costs (e.g., books, transportation, off-campus housing). It will also specify the academic period, enrollment status, and whether tuition is estimated or set. Following costs, the form will detail grants and scholarships, differentiated by source, explicitly stating they do not need to be repaid and outlining conditions for institutional aid. A crucial component is the calculation and disclosure of the net price , defined as the cost of attendance minus grants and scholarships, accompanied by a disclaimer that this is an estimate and not the direct amount owed to the institution. Information on federal loans, excluding PLUS loans, must be clearly labeled as "loan," distinguish between subsidized and unsubsidized options, and include disclosures about repayment obligations, interest rates, fees, and links to Department of Education repayment calculators. The form will also outline the process for accepting, adjusting, or declining aid, along with deadlines and payment information for direct costs. It requires disclosures about verification processes and provides contact information for financial aid offices and the Department of Education. Furthermore, it may include additional information like cohort default rates, the percentage of students borrowing, and median loan debt to help students make informed decisions. Institutions may add information on payment plans or the availability of PLUS loans and private education loans, but without including specific amounts for these. The bill mandates disclosures explaining the benefits of federal loans over private options and the impact of private loans on other aid eligibility. Finally, all institutions receiving federal financial assistance will be required to use this standardized form and terminology once finalized by the Secretary after consumer testing.