Student Protection and Success: New Student Loan Repayment Rules
This act introduces new rules for higher education institutions aimed at improving student loan repayment rates. Institutions with low repayment rates among their students may lose access to federal financial aid programs. Additionally, the act establishes a bonus program for institutions that effectively support low- and moderate-income students.
Key points
Colleges with a student loan repayment rate below 15% may lose eligibility for federal financial aid programs starting in fiscal year 2025.
Institutions will be required to make risk-sharing payments if their students fail to repay loans, encouraging better student support.
A bonus program is created for institutions that successfully help low- and moderate-income students access and complete college, funded by risk-sharing payments.
The act modifies how student loan repayment rates are calculated, excluding students in specific situations (e.g., military service, continued enrollment).
Status:
Expired
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