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Higher Education Reform and Opportunity Act
3/21/2025, 2:52 PM
Summary of Bill S 801
One of the key provisions of this bill is the requirement for colleges and universities to provide more transparency when it comes to their financial practices. This includes disclosing information about how they are using federal funds and ensuring that they are being used in a responsible manner.
Additionally, the bill mandates that institutions of higher education must publish data on student success rates, such as graduation rates and job placement after graduation. This information will help prospective students make more informed decisions about where to pursue their education. Another important aspect of the bill is the focus on holding schools accountable for student loans. This includes measures to ensure that students are not taking on excessive debt and that schools are providing adequate support to help students repay their loans after graduation. Overall, Bill 119 s 801 aims to improve accountability and transparency within the higher education system, ultimately benefiting both students and taxpayers.
Congressional Summary of S 801
Higher Education Reform and Opportunity Act
This 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.
