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Student Loan Reforms and New Workforce Pell Grants

This act introduces changes to federal student loan programs, aiming to protect both borrowers and taxpayers. It limits the Secretary of Education's authority to issue new regulations, modifies loan repayment terms including income-driven plans, and expands Pell Grant eligibility to certain short-term workforce development programs. These changes could impact monthly payments, debt forgiveness conditions, and funding opportunities for vocational training.
Key points
Limits the Secretary of Education's authority to propose or issue economically significant regulations that would increase loan modification subsidy costs.
Introduces new interest cancellation provisions for income-contingent and income-based repayment plans, potentially reducing the total cost for some borrowers.
Increases the number of times a borrower can rehabilitate a defaulted loan from one to two.
Establishes new annual and aggregate loan limits for graduate and professional students for loans disbursed on or after July 1, 2023, with exceptions for current students.
Terminates the Federal Direct PLUS Loan program for graduate and professional students for loans disbursed on or after July 1, 2023, with exceptions for current students.
Allows educational institutions to prorate or limit loan amounts based on graduate earnings data and repayment rates for new students.
Caps repayment incentives (interest rate reductions) at 0.25 percentage points for loans disbursed on or after July 1, 2023.
Mandates two repayment plans (standard 10-year and a new income-based plan) for loans disbursed on or after July 1, 2023, eliminating other options.
Excludes new loans (disbursed on or after July 1, 2023) from eligibility for Public Service Loan Forgiveness (PSLF).
Establishes a new Income-Based Repayment (IBR) program for loans disbursed on or after July 1, 2023, with specific cancellation criteria after repaying an amount equivalent to a 10-year standard plan.
Modifies deferment options for loans disbursed on or after July 1, 2023, including new rules for interest accrual during deferment periods for various circumstances like unemployment, medical treatment, or military service.
Eliminates interest capitalization for most federal student loans, meaning unpaid interest will no longer be added to the principal balance.
Extends Federal Pell Grant eligibility to certain short-term workforce development programs (Workforce Pell Grants) starting July 1, 2023, potentially making vocational training more accessible.
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Additional Information
Print number: 117_HR_8655
Sponsor: Rep. Foxx, Virginia [R-NC-5]
Process start date: 2022-08-05
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OFFICIAL LEGAL TITLE

Responsible Education Assistance through Loan Reforms Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_8655.

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 2022-08-05.

What are the main provisions?

Key points include:

  • Limits the Secretary of Education's authority to propose or issue economically significant regulations that would increase loan modification subsidy costs.
  • Introduces new interest cancellation provisions for income-contingent and income-based repayment plans, potentially reducing the total cost for some borrowers.
  • Increases the number of times a borrower can rehabilitate a defaulted loan from one to two.
  • Establishes new annual and aggregate loan limits for graduate and professional students for loans disbursed on or after July 1, 2023, with exceptions for current students.
  • Terminates the Federal Direct PLUS Loan program for graduate and professional students for loans disbursed on or after July 1, 2023, with exceptions for current students.
  • Allows educational institutions to prorate or limit loan amounts based on graduate earnings data and repayment rates for new students.
  • Caps repayment incentives (interest rate reductions) at 0.25 percentage points for loans disbursed on or after July 1, 2023.
  • Mandates two repayment plans (standard 10-year and a new income-based plan) for loans disbursed on or after July 1, 2023, eliminating other options.
  • Excludes new loans (disbursed on or after July 1, 2023) from eligibility for Public Service Loan Forgiveness (PSLF).
  • Establishes a new Income-Based Repayment (IBR) program for loans disbursed on or after July 1, 2023, with specific cancellation criteria after repaying an amount equivalent to a 10-year standard plan.
  • Modifies deferment options for loans disbursed on or after July 1, 2023, including new rules for interest accrual during deferment periods for various circumstances like unemployment, medical treatment, or military service.
  • Eliminates interest capitalization for most federal student loans, meaning unpaid interest will no longer be added to the principal balance.
  • Extends Federal Pell Grant eligibility to certain short-term workforce development programs (Workforce Pell Grants) starting July 1, 2023, potentially making vocational training more accessible.
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. Foxx, Virginia [R-NC-5].

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 2026-01-02.

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