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HIGHER ED Act
12/30/2022, 3:49 AM
Summary of Bill HR 6424
Bill 117 hr 6424, also known as the HIGHER ED Act, is a proposed reauthorization of the Higher Education Act. The bill aims to make several key changes to the current law in order to improve access to higher education and make college more affordable for students.
One of the main provisions of the HIGHER ED Act is the expansion of federal student financial aid programs. The bill proposes increasing the maximum Pell Grant award, which is a need-based grant for low-income students, and indexing it to inflation to ensure that it keeps pace with rising college costs. The bill also includes provisions to simplify the Free Application for Federal Student Aid (FAFSA) process, making it easier for students to apply for financial aid. In addition to expanding financial aid programs, the HIGHER ED Act also includes provisions aimed at increasing transparency and accountability in higher education. The bill proposes requiring colleges and universities to provide more information to students about the cost of attendance, graduation rates, and student loan repayment rates. This information would help students make more informed decisions about where to attend college and how to finance their education. Overall, the HIGHER ED Act is a comprehensive piece of legislation that seeks to improve access to higher education and make college more affordable for students. If passed, the bill would have a significant impact on the way federal student financial aid programs are administered and how colleges and universities are held accountable for their outcomes.
Congressional Summary of HR 6424
Helping Individuals Get a Higher Education while Reducing Education Debt Act or the HIGHER ED Act
This bill makes various changes to student loan forgiveness and loan repayment programs.
First, the bill authorizes graduate and professional students to receive subsidized Stafford Loans. These students have been ineligible to receive subsidized Stafford Loans since July 1, 2012.
Next, the bill allows student loans to be discharged in bankruptcy proceedings.
The bill also establishes refinancing programs for student loans. It allows certain borrowers to refinance their federal student loans down to lower interest rates, and it creates the Federal Direct Refinanced Private Loan to allow certain borrowers to refinance their private student loans.
Additionally, the bill revises the Public Service Loan Forgiveness (PSLF) program, such as by (1) allowing certain part-time faculty to participate in the PSLF program, (2) directing the Department of Education (ED) to annually cancel 10% of the amount a borrower owes after satisfying 12 qualifying monthly payments, (3) revising the process for certification of employment, and (4) requiring ED to establish a dispute resolution process.
Further, the bill revises federal student loan repayment programs, including by (1) replacing existing student loan repayment plans with one income-based repayment plan and one standard 10-year repayment plan, and (2) allowing existing borrowers to lower their payments by switching to these new plans. It also establishes a process for ED to enroll a delinquent borrower in a new repayment plan.
The bill also requires ED to provide certain notifications to borrowers.
