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Student Loan Limits: Colleges Can Set Borrowing Caps

New rules allow colleges to limit the amount of federal student loans students can borrow. This aims to prevent excessive debt, especially when post-graduation earnings are low. Students with special circumstances can request an increase in their loan limit.
Key points
Colleges can set lower student loan limits if they determine that debt levels would be excessive compared to the typical starting salaries for graduates of a specific program.
Limits can also be adjusted based on a student's enrollment status (e.g., part-time), the credential level, or the year of the program.
Students can request an increase in their loan amount if they demonstrate special circumstances or exceptional financial need.
The law prohibits limiting loans based on race, color, religion, sex, marital status, age, disability, or national origin.
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Additional Information
Print number: 117_HR_4600
Sponsor: Rep. Grothman, Glenn [R-WI-6]
Process start date: 2021-07-21
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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

Responsible Borrowing Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4600.

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 2021-07-21.

What are the main provisions?

Key points include:

  • Colleges can set lower student loan limits if they determine that debt levels would be excessive compared to the typical starting salaries for graduates of a specific program.
  • Limits can also be adjusted based on a student's enrollment status (e.g., part-time), the credential level, or the year of the program.
  • Students can request an increase in their loan amount if they demonstrate special circumstances or exceptional financial need.
  • The law prohibits limiting loans based on race, color, religion, sex, marital status, age, disability, or national origin.
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. Grothman, Glenn [R-WI-6].

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 2025-12-28.

CATEGORIES

Education