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Student Loan Limits: Colleges Can Set Borrowing Caps

This new act allows colleges to limit the amount of federal student loans students can borrow. The goal is to prevent excessive debt, based on graduate earnings data and student enrollment status. Citizens may experience changes in accessing full loan amounts, but it could also help avoid accumulating too much debt after graduation.
Key points
Colleges can set lower student loan limits if they determine debt levels might be excessive for a specific program of study.
Limits can be based on expected graduate earnings, student enrollment status (e.g., part-time), or the credential level being pursued.
In individual cases, institutions can increase the loan amount upon a student's request.
The rules prohibit discrimination based on a student's race, sex, or national origin when setting limits.
Students enrolled in a program of study as of June 30, 2024, are exempt from these new limitations for the duration of their program.
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Additional Information
Print number: 118_HR_3414
Sponsor: Rep. Grothman, Glenn [R-WI-6]
Process start date: 2023-05-17
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Responsible Borrowing Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3414.

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 2023-05-17.

What are the main provisions?

Key points include:

  • Colleges can set lower student loan limits if they determine debt levels might be excessive for a specific program of study.
  • Limits can be based on expected graduate earnings, student enrollment status (e.g., part-time), or the credential level being pursued.
  • In individual cases, institutions can increase the loan amount upon a student's request.
  • The rules prohibit discrimination based on a student's race, sex, or national origin when setting limits.
  • Students enrolled in a program of study as of June 30, 2024, are exempt from these new limitations for the duration of their program.
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. Grothman, Glenn [R-WI-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and the Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Education