Understanding the True Cost of College Act of 2023

The Understanding the True Cost of College Act of 2023 requires colleges and universities receiving federal financial aid to use a standardized financial aid offer form for all students applying for aid. The form must clearly separate costs (including tuition, housing, books, and other expenses), grants/scholarships (non-repayable aid), and loans (repayable debt), with a calculated net price showing what students actually pay after grants. It mandates plain-language explanations of loan terms, repayment options, interest rates, and distinctions between Federal and private loans, while requiring institutions to disclose key metrics like cohort default rates and median student debt. This replaces inconsistent, confusing financial aid documents with a uniform format designed to help students make informed college financing decisions.