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Higher Education Reform: New Student Loans and Accreditation Rules

This act introduces significant changes to the student loan system, including new loan types and limitations on loan forgiveness. It also alters university accreditation rules, allowing states to create their own systems. Additionally, institutions will be required to publish more data on student success and loan repayment rates.
Key points
Introduction of new "Federal Direct simplification loans" starting July 2026, with fixed interest rates, loan limits, and repayment periods (15 years for undergraduates, 25 years for graduates).
Elimination of student loan forgiveness for loans disbursed after July 1, 2026, with an exception for continuing the same program of study started before that date.
States can establish their own alternative accreditation systems for educational institutions, programs, and courses, potentially broadening access to federal funding for various forms of education.
Requirement for higher education institutions to publish detailed student data, including completion rates, post-graduation employment, average graduate earnings, and loan default rates.
Imposition of financial penalties on institutions with high student loan default rates, increasing their accountability for student financial outcomes.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1739
Sponsor: Rep. Roy, Chip [R-TX-21]
Process start date: 2025-02-27
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Summarized by: gemini-2.5-flash
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 119_HR_1739.

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 2025-02-27.

What are the main provisions?

Key points include:

  • Introduction of new "Federal Direct simplification loans" starting July 2026, with fixed interest rates, loan limits, and repayment periods (15 years for undergraduates, 25 years for graduates).
  • Elimination of student loan forgiveness for loans disbursed after July 1, 2026, with an exception for continuing the same program of study started before that date.
  • States can establish their own alternative accreditation systems for educational institutions, programs, and courses, potentially broadening access to federal funding for various forms of education.
  • Requirement for higher education institutions to publish detailed student data, including completion rates, post-graduation employment, average graduate earnings, and loan default rates.
  • Imposition of financial penalties on institutions with high student loan default rates, increasing their accountability for student financial outcomes.
What is the specific legal status?

The current status is Introduced.

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 Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Education