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Higher Education Reform: New Student Loans and Accreditation Rules

This act introduces significant changes to the student loan system, replacing current programs with new "simplification loans." It also limits student loan forgiveness and introduces new accreditation rules, giving states a greater role. Additionally, institutions will be required to publish detailed data on student success and loan repayment rates.
Key points
Starting July 1, 2025, most existing federal student loans will be replaced by new "Federal Direct simplification loans" with fixed interest rates and repayment periods.
Student loan forgiveness options will be significantly limited for new loans disbursed after July 1, 2025.
New accreditation rules will be introduced, allowing states to establish their own alternative accreditation systems for educational institutions, including vocational programs and courses.
Colleges and universities will be required to publish detailed information on students, such as completion rates, employment rates after graduation, median earnings of former students, and loan default rates.
Educational institutions with high student loan non-repayment rates will face financial penalties.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_801
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2025-02-27
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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 119_S_801.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-02-27.

What are the main provisions?

Key points include:

  • Starting July 1, 2025, most existing federal student loans will be replaced by new "Federal Direct simplification loans" with fixed interest rates and repayment periods.
  • Student loan forgiveness options will be significantly limited for new loans disbursed after July 1, 2025.
  • New accreditation rules will be introduced, allowing states to establish their own alternative accreditation systems for educational institutions, including vocational programs and courses.
  • Colleges and universities will be required to publish detailed information on students, such as completion rates, employment rates after graduation, median earnings of former students, and loan default rates.
  • Educational institutions with high student loan non-repayment rates will face financial penalties.
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 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 2025-12-23.

CATEGORIES

Education