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University Accountability for Student Loan Defaults and Tuition Hikes

This act imposes financial penalties on higher education institutions with large endowments if a high percentage of their students default or make insufficient payments on federal student loans. Additionally, these institutions may face a higher tax if they increase tuition above an inflation-adjusted base amount. The goal is to encourage universities to better prepare students for loan repayment and control rising education costs.
Key points
Universities with endowments of $2.5 billion or more will pay penalties if a high percentage of their students default, are delinquent, or underpay federal student loans.
Penalty rates and thresholds for loan repayment issues will gradually increase/decrease over the years.
Large endowment institutions that raise tuition above an inflation-adjusted base amount will face a significantly higher tax on their net investment income.
Penalties paid by institutions do not affect the rights or obligations of student borrowers.
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Expired
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Additional Information
Print number: 118_HR_7831
Sponsor: Rep. Van Duyne, Beth [R-TX-24]
Process start date: 2024-03-26
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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

Preventing Financial Exploitation in Higher Education Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_7831.

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 2024-03-26.

What are the main provisions?

Key points include:

  • Universities with endowments of $2.5 billion or more will pay penalties if a high percentage of their students default, are delinquent, or underpay federal student loans.
  • Penalty rates and thresholds for loan repayment issues will gradually increase/decrease over the years.
  • Large endowment institutions that raise tuition above an inflation-adjusted base amount will face a significantly higher tax on their net investment income.
  • Penalties paid by institutions do not affect the rights or obligations of student borrowers.
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. Van Duyne, Beth [R-TX-24].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

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

CATEGORIES

Education Taxes Economy