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New Student Loan Rules: Colleges Share Default Risk

This act changes the student loan system, making colleges financially responsible for defaulted loans. The goal is to protect students and taxpayers, and encourage institutions to better manage student debt risks. Some collected funds will support low-income students.
Key points
Colleges will pay a portion of defaulted student loan costs if their students frequently default.
Payment amounts depend on the institution's student loan default rate.
Colleges can get waivers or reductions if they implement student loan management plans and financial counseling.
Collected funds will be used for default prevention and additional grants for low-income students.
Colleges cannot deny admission or financial aid based on student risk factors for loan default.
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Expired
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Additional Information
Print number: 117_S_5065
Sponsor: Sen. Reed, Jack [D-RI]
Process start date: 2022-09-29
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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

Protect Student Borrowers Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_5065.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-09-29.

What are the main provisions?

Key points include:

  • Colleges will pay a portion of defaulted student loan costs if their students frequently default.
  • Payment amounts depend on the institution's student loan default rate.
  • Colleges can get waivers or reductions if they implement student loan management plans and financial counseling.
  • Collected funds will be used for default prevention and additional grants for low-income students.
  • Colleges cannot deny admission or financial aid based on student risk factors for loan default.
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. Reed, Jack [D-RI].

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.

CATEGORIES

Education