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Student Protection: Holding Colleges Accountable for Loan Repayment Rates.

This law introduces financial accountability for colleges whose students struggle to repay federal loans. Starting in 2027, institutions where 15% or fewer borrowers reduce their loan principal will lose access to federal student aid programs, including loans and Pell Grants. The goal is to protect students and taxpayers by penalizing schools that offer low-value programs leading to high debt.
Key points
Colleges with very low loan repayment rates (15% or less) will lose eligibility for federal student loans and Pell Grants starting in 2027.
Institutions must make "risk-sharing payments" based on the balance of loans that students fail to reduce, forcing schools to share the financial burden of poor outcomes.
High-performing schools (repayment rate above 25%) will receive bonus grants to increase financial aid and support services for low-income students.
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Additional Information
Print number: 118_S_4565
Sponsor: Sen. Shaheen, Jeanne [D-NH]
Process start date: 2024-06-18
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Student Protection and Success Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4565.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-06-18.

What are the main provisions?

Key points include:

  • Colleges with very low loan repayment rates (15% or less) will lose eligibility for federal student loans and Pell Grants starting in 2027.
  • Institutions must make "risk-sharing payments" based on the balance of loans that students fail to reduce, forcing schools to share the financial burden of poor outcomes.
  • High-performing schools (repayment rate above 25%) will receive bonus grants to increase financial aid and support services for low-income students.
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. Shaheen, Jeanne [D-NH].

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 2025-12-26.

CATEGORIES

Education Economy