Higher Education Reform and Opportunity Act
Higher Education Reform and Opportunity Act
Plain Language Summary
# Summary of HR 1739: Higher Education Reform and Opportunity Act **What the Bill Would Do:** This bill would significantly restructure federal student lending and higher education accreditation. It would consolidate multiple federal student loan programs into a single loan program and eliminate loan forgiveness programs for borrowers. The bill would also expand federal student aid eligibility to include alternative education and training programs—such as apprenticeships and vocational courses—if they're accredited through state-level agreements with the Department of Education, not just traditional colleges and universities. **Who It Affects and Key Provisions:** The bill primarily affects college students and recent graduates, as well as institutions offering postsecondary education. It requires colleges and universities to publicly report data on how many former financial aid recipients find employment after graduation and how much federal student loan debt graduates accumulate.
These transparency measures are designed to help students make informed decisions about their education choices. The bill shifts some accreditation authority to state governments rather than relying solely on federal oversight. **Current Status:** HR 1739 is currently in committee and has not been voted on by the full House. It was introduced by Representative Chip Roy (R-TX) in the 119th Congress.
CRS Official Summary
Higher Education Reform and Opportunity ActThis bill revises requirements governing student loans and the accreditation of institutions of higher education (IHEs).Specifically, the bill consolidates federal student loans into one student loan program and phases out loan forgiveness for borrowers.Additionally, the bill makes postsecondary education courses and programs (e.g., apprenticeship programs) that provide credits toward a postsecondary certification, credential, or degree eligible for federal student aid funding if the courses and programs are accredited by a state that has an alternative accreditation agreement with the Department of Education (ED).The bill requires IHEs to publish certain enrollment and financial aid information, including (1) the percentage of former financial aid recipients who are employed at various intervals following graduation, and (2) the average amount of total federal student loan debt accrued upon graduation. The Government Accountability Office must compile, study, and report on all such information published by IHEs. Further, the bill prohibits the disclosure of personally identifiable information and directs ED to establish penalties for violations. Lastly, the bill requires an IHE to pay a default rate fine for a fiscal year in an amount that is equal to the applicable percentage of outstanding federal student loans (i.e., the total amount of loans issued to students for attendance at the IHE for which regular on-time payments are not being made). An IHE shall receive a $400 credit for each graduate of the IHE who received a Federal Pell Grant while enrolled at the IHE during the fiscal year.
Latest Action
Referred to the House Committee on Education and Workforce.