Student Loan and University Reform: New Rules and Taxes
The act changes the student loan system, limiting access to certain loan types and making universities partly responsible for defaulted debt. It also introduces new taxes for wealthy universities and regulations on campus free speech and administrative staff levels.
Key points
Limits access to PLUS loans for some graduate and professional students starting July 2023.
Sets annual and lifetime dollar limits for PLUS loans for parents and healthcare students.
Imposes financial penalties on universities for their students' loan defaults.
Requires universities to cover a portion of defaulted loan balances after 10 years and exhausted recovery efforts from the student.
Mandates a 50% reduction in administrative staff over 5 years at certain high-tuition universities, prioritizing DEI, executive/management, and HR staff.
Prohibits preferential treatment or discrimination based on race/origin in admissions and employment at federally funded universities.
Bans federal funding for universities that compel affirmation of race-based theories.
Introduces new excise taxes on universities with large endowments, for failure to distribute endowment funds, and on tuition exceeding $40,000 per year.
Prohibits requiring FAFSA submission from students not applying for federal financial aid.
Strengthens protection of student free speech on campuses, including banning free speech zones and restrictive speech codes, and establishes enforcement mechanisms.
Status:
Expired
Record your position for audit.
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens
(explained here).
Start recording it now.