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Higher Education Reform: New Student Loan Rules and Transparency

This act significantly changes the student loan system, introducing new limits and repayment rules, and eliminating loan forgiveness programs for new loans. Colleges will be required to publish detailed data on student success and debt rates, helping citizens make informed educational choices. It also allows states to create alternative accreditation systems, potentially broadening educational offerings.
Key points
New Federal Direct Simplification Loans starting July 2024 with fixed interest rates, borrowing limits, and set repayment periods (15 years for undergraduate, 25 years for graduate/professional).
Student loan forgiveness programs will be phased out for most new loans disbursed after July 1, 2024, meaning students will be responsible for repaying the full amount.
Colleges must publish detailed information, including completion rates, post-graduation employment, median earnings of former students, and loan default/non-repayment rates, increasing transparency.
States can establish alternative accreditation systems for various educational forms, including vocational programs and courses, potentially opening federal funding to a wider range of educational entities.
Institutions will face an annual fine based on their student loan default rates, encouraging better financial counseling and accountability for student outcomes.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 118_HR_5042
Sponsor: Rep. Roy, Chip [R-TX-21]
Process start date: 2023-07-27
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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

Higher Education Reform and Opportunity Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_5042.

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 2023-07-27.

What are the main provisions?

Key points include:

  • New Federal Direct Simplification Loans starting July 2024 with fixed interest rates, borrowing limits, and set repayment periods (15 years for undergraduate, 25 years for graduate/professional).
  • Student loan forgiveness programs will be phased out for most new loans disbursed after July 1, 2024, meaning students will be responsible for repaying the full amount.
  • Colleges must publish detailed information, including completion rates, post-graduation employment, median earnings of former students, and loan default/non-repayment rates, increasing transparency.
  • States can establish alternative accreditation systems for various educational forms, including vocational programs and courses, potentially opening federal funding to a wider range of educational entities.
  • Institutions will face an annual fine based on their student loan default rates, encouraging better financial counseling and accountability for student outcomes.
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. Roy, Chip [R-TX-21].

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