Bill > HR1739

This bill, the Higher Education Reform and Opportunity Act, proposes several significant changes to higher education financing and accountability. The bill introduces a new Federal Direct Simplification Loan system starting in 2026, which will replace existing federal student loan programs with a streamlined approach that includes fixed interest rate caps, lower maximum borrowing amounts, and shorter repayment terms (15 years for undergraduates and 25 years for graduate students). The bill also eliminates most loan forgiveness programs for new loans after 2026 and phases out current loan forgiveness options. Additionally, the legislation creates a state-level alternative accreditation system that would allow states to establish their own methods for approving postsecondary education institutions and programs, potentially expanding educational options beyond traditional accredited colleges. The bill mandates increased transparency from higher education institutions, requiring them to publish detailed information about student outcomes, financial aid, enrollment, graduation rates, and post-graduation employment and earnings. Furthermore, the bill introduces a default rate fine mechanism that would require institutions to pay a financial penalty based on their students' loan repayment performance, with a credit system for institutions graduating Pell Grant recipients. These comprehensive reforms aim to create more accountability, flexibility, and transparency in higher education financing and accreditation.

Education

https://www.congress.gov/bill/119th-congress/house-bill/1739/all-info