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Adds new reporting and disclosure requirements related to institutional instructional expenditures, third-party servicers, and online program transparency; requires the Secretary to define instructional expenditure categories and publish reported data on the College Navigator website.
Inserts a new paragraph requiring the Secretary to make publicly available and keep updated borrower defense claim and discharge data disaggregated by institution, state of residence, student loan servicer, and amount of discharge (in increments of not less than $10,000).
Redesignates certain subparagraphs/clauses and adds explicit public disclosure requirements for 90/10 data on the Department's College Navigator website, including procedures for temporary omissions and amendments to the 90/10 database.
Adds multiple transparency and reporting requirements for proprietary institutions, including prompt filing of SEC public filings or similar notifications to the Secretary, public posting of those filings on the Department website, posting of audited financial statements and letters of credit terms, and disclosure of communications and decisions regarding financial protections and changes of ownership or conversion applications.
Expands disclosure requirements concerning accrediting agency recognition and monitoring by requiring the Secretary to publicly disclose departmental draft and final recognition and monitoring reports and to require accrediting agencies to post and submit communications to institutions about actions and to do so without redaction (except for PII); also requires the Secretary to disclose communications submitted by accreditors.
Adds a new subsection (h) to 20 U.S.C. 1088 establishing a single definition of 'job placement rate' to be adopted by the Secretary for purposes of the Act.
Strengthens federal oversight of colleges that receive Title IV student aid by imposing debt-and-earnings-based accountability rules, expanding borrower protections, and increasing transparency about programs, finances, and oversight actions. It blocks federal funds for programs that fail outcome standards, limits problematic recruiting and contracting practices, and requires institutions to meet minimum spending on instruction and student services. Creates a new enforcement unit inside the Office of Federal Student Aid to investigate schools and servicers, including covert compliance checks, impose civil penalties, and take emergency actions; requires more public reporting from the Department of Education and institutions; and phases in specific reporting and regulatory steps tied to academic years beginning 2026–2027 through 2031–2032.
States that the table of contents for this Act is provided (the section text only contains the heading and the sentence that the table of contents follows).
Unless otherwise expressly provided in this Act, when the Act says it is amending or repealing a section or provision, that reference is to the corresponding section or provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
Amends Higher Education Act definitions to expand/clarify which institutions and programs are treated as “gainful employment”/eligible programs by making amendments to sections 101(b), 102(b)(1)(A)(i), 102(c)(1)(A), and 481(b)(1)(A)(i).
Adds a new section (498C) to require debt-to-earnings and earnings premium calculations for eligible programs, including defining key terms (annual debt-to-earnings rate, annual loan payment, discretionary debt-to-earnings rate, discretionary earnings, earnings premium, and median annual earnings).
Sets standards under which an eligible program does not meet debt-to-earnings or earnings premium standards: failure occurs if the program fails the debt-to-earnings rates or fails the earnings premium in 2 out of any 3 consecutive years.
Primary effects:
Students and borrowers: Will generally benefit from stronger consumer protections, clearer public information on program outcomes and job placement, and potentially improved recourse for predatory or low‑value programs. Some students may face program disruptions or closures if their programs lose Title IV eligibility.
Institutions of higher education (public, nonprofit, proprietary): Face increased compliance, reporting, and spending requirements. Proprietary and low‑performing programs are at higher risk of losing Title IV access. Institutions may need to reallocate funds to meet minimum instruction/student services spending rules, review contracting relationships, and update participation agreements.
Loan servicers and third‑party contractors (placement vendors, recruiters, online program managers): Increased oversight, complaint-driven investigations, potential covert checks, and public disclosure obligations will raise compliance costs and legal risk.
Accrediting agencies and state/regional oversight: Greater transparency requirements and new enforcement pathways could change accreditor oversight behavior and heighten scrutiny of program quality metrics.
Department of Education and Office of Federal Student Aid: Must stand up a new enforcement unit, allocate staff with investigative and technical skills, coordinate with other agencies and states, and maintain expanded public reporting systems—requiring administrative capacity and resources.
Taxpayers and federal budget: Aims to protect taxpayer dollars by tighter program accountability and recoupment authority, but could increase short-term administrative costs to implement enforcement and reporting systems; potential long‑term savings if low‑value programs are de‑funded.
Risks and tradeoffs:
Overall, the legislation shifts power toward consumer protection and federal oversight of Title IV-funded programs, while increasing compliance and reporting burdens on institutions, servicers, and contractors.
Expand sections to see detailed analysis
Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S1706-1715)
Introduced March 12, 2025 by Richard Joseph Durbin · Last progress March 12, 2025
Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S1706-1715)
Introduced in Senate