Higher Education Reform and Opportunity Act
Higher Education Reform and Opportunity Act
Plain Language Summary
# Higher Education Reform and Opportunity Act Summary **What the Bill Would Do** This bill proposes significant changes to federal student loans and how colleges are accredited. It would consolidate multiple federal student loan programs into a single program and gradually eliminate loan forgiveness programs that currently allow borrowers to have remaining balances canceled after a certain period. The bill also aims to expand federal student aid eligibility to include vocational and apprenticeship programs (not just traditional college degrees) if they're accredited through new state-based alternative accreditation agreements. **Who It Affects and Key Provisions** The bill directly affects student loan borrowers, colleges and universities, and students considering career training programs.
Key requirements include mandatory transparency measures—colleges would have to publicly report employment rates of graduates at different time intervals after they leave school and show average federal loan debt per graduate. These information requirements are meant to help students make more informed decisions about which schools to attend. The bill is currently in committee and has not yet been voted on by the full Senate.
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
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.