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Amends Title IV of the Higher Education Act (20 U.S.C. 1070 et seq.) by adding a clause to section 487(a) requiring institutions to publish information in compliance with a newly added section 494B, and by adding new section 494B establishing institutional publication requirements (data elements to publish), privacy rules referencing FERPA, penalties, and a rule of construction.
Adds a new requirement to the program participation agreement mandating that institutions pay an annual default rate fine and adds subsection (k) establishing the calculation, definitions, credits, and counseling flexibility related to that fine.
Adds a new paragraph (3) to subsection (l) allowing eligible institutions to require borrower counseling at or before disbursement, including the information described in paragraph (2) or other financial counseling.
Modifies section 102(a)(1) by redesignating existing subparagraphs (B) and (C) as (C) and (D), and inserting a new subparagraph (B) after (A) to include entities accredited by an authorized accreditation authority in a State that has an alternative accreditation agreement with the Secretary, enumerating covered entities (institutions providing postsecondary education, postsecondary apprenticeship programs, and postsecondary courses or programs provided by institutions, nonprofits, or for-profits).
Adds a new section (titled "494A. State Accredited Institutions, Programs, or Courses") to Part G of title IV stating that institutions, programs, or courses eligible under new 102(a)(1)(B) and meeting the requirements of section 498C shall not be required to meet the requirements of section 496 or the requirements in subsections (a)(2) and (b) of section 481.
Amends section 451 of the Higher Education Act (20 U.S.C. 1087a) to add expirations and new borrower-eligibility restrictions, and to add new Part D provisions creating 'Federal Direct simplification loans' (section 460A) with specified rates, borrowing limits, repayment terms, and prohibitions on forgiveness for those loans.
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.
Amends section 451 of the Higher Education Act (20 U.S.C. 1087a) to prohibit expenditure of sums for loans under that part with first disburbursement after September 30, 2030, except Federal Direct simplification loans under new section 460A.
No new loans may be made under that part after September 30, 2030, except Federal Direct simplification loans under section 460A.
No funds are authorized or may be expended to make loans under that part for which the first disbursement is after September 30, 2030, except Federal Direct simplification loans under section 460A or if expressly authorized by a later Act of Congress.
Beginning with award year 2026, no loan may be made under that part to a new borrower for which the first disbursement is after June 30, 2026, except Federal Direct simplification loans under section 460A.
Borrowers who, as of July 1, 2026, have outstanding balances on loans under the old part (not Federal Direct simplification loans) may continue to borrow under the old part for undergraduate or graduate/professional programs, or on behalf of dependent students, through September 30, 2030, subject to paragraph (3).
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Referred to the House Committee on Education and Workforce.
Introduced February 27, 2025 by Charles Roy · Last progress February 27, 2025
Referred to the House Committee on Education and Workforce.
Introduced in House
