Higher Education Reform and Opportunity Act

Overhauls federal student lending by creating a simplified Direct Loan program starting in 2026, setting fixed interest, borrowing limits, and repayment terms, and restricting certain loan forgiveness and fees. It also adds new accountability for colleges with high non‑repayment and expands financial counseling options for borrowers.

Allows states, under agreements with the Education Department, to recognize alternative accreditation for institutions, programs, or courses that then qualify for federal aid with fewer statutory requirements. Requires colleges to publish clear, annual program‑level and institution‑level data on enrollment, aid, outcomes, and loan repayment, with privacy safeguards and a GAO review within four years.