PROTECT Students Act of 2025
PROTECT Students Act of 2025
Plain Language Summary
# PROTECT Students Act of 2025 – Summary **What It Would Do** The PROTECT Students Act would strengthen federal protections for college students and borrowers against predatory practices in higher education. The bill would give legal authority to Department of Education rules that measure whether career education programs actually prepare students for jobs that can support loan repayment. It would also prohibit colleges from restricting students' right to sue their institution or withholding transcripts and records as pressure tactics. **Who It Affects & Key Provisions** The bill primarily affects students at colleges and career education programs that receive federal financial aid.
Key protections include: establishing clear standards for what counts as legitimate job training (based on debt-to-earnings ratios), preventing schools from blocking legal claims against them, and stopping schools from withholding diplomas or records as leverage. These rules aim to prevent students from taking on excessive debt for programs that don't lead to adequate employment. **Current Status** The bill is currently in committee (S 994, 119th Congress) and has not yet been voted on. It was introduced by Senator Richard Durbin (D-Illinois).
CRS Official Summary
Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2025 or the PROTECT Students Act of 2025This bill sets forth provisions to address financial predatory practices in higher education, including by establishing additional protections for students and student loan borrowers.Specifically, the bill provides statutory authority for Department of Education (ED) regulations related to gainful employment, borrower defense to repayment, and closed school discharges. For example, ED's 2023 gainful employment regulations specify that ED considers a career education program to be preparing students for gainful employment if it meets specified debt-to-earnings or earnings premium measures.Additionally, the bill prohibits institutions of higher education (IHEs) that participate in federal student aid programs from taking specified actions, such as (1) restricting students' ability to pursue claims against IHEs in court, and (2) withholding official transcripts because of a balance owed by the student.The bill requires IHEs to spend at least 30% of their tuition and fee revenue on instruction.The bill also includes additional oversight measures, such asproviding statutory authority for an enforcement unit within ED's Office of Federal Student Aid to assess complaints against IHEs, third-party servicers, and student loan servicers; establishing the For-Profit Education Oversight Coordination Committee within the executive branch; andrequiring ED to establish and operate a system that tracks complaints or reports of suspicious activity by IHEs, third-party servicers, and student loan servicers.The bill makes funding available to ED for the administrative costs of operating student aid programs.
Latest Action
Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S1706-1715)