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New Student Loan Rules: Lower Rates and University Responsibility

This act introduces a program allowing universities to co-sign federal student loans. This could lead to lower interest rates for students, while making universities partially responsible for loan repayment if a student defaults. The aim is to reduce risk for borrowers and encourage better program management by institutions.
Key points
Universities can co-sign federal student loans, potentially lowering interest rates for students.
If a student defaults, the co-signing university will be obligated to repay outstanding amounts.
The default rate threshold for institutions is modified, potentially impacting their status and funding.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 117_HR_1586
Sponsor: Rep. Perry, Scott [R-PA-10]
Process start date: 2021-03-03
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Student Loan Reform Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1586.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-03.

What are the main provisions?

Key points include:

  • Universities can co-sign federal student loans, potentially lowering interest rates for students.
  • If a student defaults, the co-signing university will be obligated to repay outstanding amounts.
  • The default rate threshold for institutions is modified, potentially impacting their status and funding.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Perry, Scott [R-PA-10].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and Labor.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Education