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Student Loan Overhaul: Fixed Repayment, No Forgiveness, and School Accountability

This Act restructures the federal student loan system by introducing new "simplification loans" with fixed repayment terms and borrowing limits. Crucially, these new loans eliminate eligibility for loan forgiveness programs starting July 1, 2024. Furthermore, the law mandates transparency from institutions regarding student outcomes and imposes financial penalties on schools based on loan non-repayment rates.
Key points
New Federal Direct simplification loans replace existing programs starting July 1, 2024, featuring interest rate caps and mandatory repayment periods (15 or 25 years).
All new simplification loans are ineligible for student loan forgiveness programs, including income-contingent repayment plans.
Colleges must publish detailed data on graduate employment rates, median earnings, and loan default rates, broken down by specific program of study.
Institutions face an annual "default rate fine" based on the total amount of outstanding student loans for which regular, on-time payments are not being made.
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Additional Information
Print number: 118_S_2629
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2023-07-27
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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_S_2629.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

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 replace existing programs starting July 1, 2024, featuring interest rate caps and mandatory repayment periods (15 or 25 years).
  • All new simplification loans are ineligible for student loan forgiveness programs, including income-contingent repayment plans.
  • Colleges must publish detailed data on graduate employment rates, median earnings, and loan default rates, broken down by specific program of study.
  • Institutions face an annual "default rate fine" based on the total amount of outstanding student loans for which regular, on-time payments are not being made.
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. Lee, Mike [R-UT].

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 2025-12-30.

CATEGORIES

Education Economy