To amend the Higher Education Act of 1965 to provide for institutional ineligibility based on low cohort repayment rates and to require risk-sharing payments of institutions of higher education

Progress

Timeline

• Mar 19Referred to the House Committee on Education and Workforce.

Summary

**What it does:** This bill would change federal student aid rules for colleges and universities. It would make schools ineligible for federal student aid programs if too few of their graduates can repay their student loans. It would also require schools to share financial responsibility by making "risk-sharing payments" when their students struggle to repay loans. **Who it affects:** - Current and future college students who rely on federal financial aid - Colleges and universities that participate in federal student aid programs - Taxpayers who fund federal student loan programs **What would change:** - Schools with consistently low loan repayment rates among graduates could lose access to federal student aid programs - Colleges would have to pay money back to the government when their students default on loans or can't repay them - This could incentivize schools to better prepare students for employment or lower tuition costs - Some schools might become more selective in admissions or change their programs The bill is currently being reviewed in congressional committee.

How This Affects You