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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.
article Official text account_balance Process page
Expired
Citizen Poll
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Additional Information
Print number: 117_S_4897
Sponsor: Sen. Cotton, Tom [R-AR]
Process start date: 2022-09-20
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Student Loan Reform Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_4897.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-09-20.

What are the main provisions?

Key points include:

  • 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.
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 Sen. Cotton, Tom [R-AR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

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