A bill to amend the Higher Education Act of 1965 to provide for institutional ineligibility based on low cohort repayment rates and to require risk-sharing payments of institutions of higher education.

Bill 118 s 4565, also known as the "Higher Education Act Amendment of 2021," aims to make changes to the Higher Education Act of 1965. The main focus of this bill is to address the issue of low cohort repayment rates among institutions of higher education.

One of the key provisions of the bill is to establish institutional ineligibility based on low cohort repayment rates. This means that if an institution has a low percentage of students who are able to repay their student loans after graduating, they may be deemed ineligible to receive federal funding. This is intended to hold institutions accountable for the success of their students and ensure that students are not burdened with unmanageable levels of debt.

Additionally, the bill also includes a requirement for risk-sharing payments from institutions of higher education. This means that institutions would be required to make payments to the federal government based on the level of risk associated with their students' loan repayment rates. This is intended to incentivize institutions to focus on improving student outcomes and ensuring that students are able to successfully repay their loans. Overall, the Higher Education Act Amendment of 2021 aims to address the issue of low cohort repayment rates and hold institutions accountable for the success of their students. By implementing measures such as institutional ineligibility and risk-sharing payments, the bill seeks to improve the quality of higher education and ensure that students are able to successfully navigate the financial challenges associated with obtaining a college degree.