Truth-in-Tuition Act of 2007 - Amends the Higher Education Act of 1965 to require institutions of higher education (IHEs) that are participating in the Act's student assistance programs to provide each prospective cohort of students applying to enter their undergraduate or graduate programs with a binding, multi-year tuition and fee schedule for the normal duration of such studies.
Requires the Secretary of Education to waive the application of such requirement to IHEs that are unable to comply because of events causing them severe economic distress.
Directs the Secretary to award: (1) competitive grants to IHEs that, for an academic year, have a net tuition (tuition and fees, minus grant amounts) increase that does not exceed the percentage change in the higher education price index; and (2) bonus amounts to IHEs that guarantee that their net tuition will not outpace changes in such index over specified periods of time. Requires IHEs to distribute such grants and bonuses as need-based grant aid to students who are eligible for federal Pell Grants.
Requires IHEs whose annual net tuition increase outpaces such index to issue an explanatory report to the Secretary that includes actions being taken to remedy the situation.