Bill > S801

This bill proposes significant reforms to higher education financing and accountability, focusing on four key areas. First, it introduces Federal Direct Simplification Loans, which would replace existing federal student loan programs by July 1, 2025, with new terms including capped interest rates, lower maximum borrowing amounts for different student categories, and fixed repayment periods of 15 years for undergraduate students and 25 years for graduate students. Second, the bill eliminates most loan forgiveness programs for new loans issued after July 1, 2025, with limited exceptions for students already in ongoing programs of study. Third, it establishes a state-level alternative accreditation system that would allow states to create their own frameworks for accrediting postsecondary education institutions, courses, and programs, potentially expanding educational options beyond traditional college pathways. Fourth, the bill mandates unprecedented transparency, requiring colleges to publish detailed annual information about student enrollment, financial aid, completion rates, employment outcomes, and loan default rates. Additionally, the bill introduces a new financial accountability mechanism where institutions would pay an annual fine based on their student loan default rates, with a potential credit for graduating Pell Grant recipients. These comprehensive reforms aim to simplify student lending, increase educational accountability, and provide more comprehensive information to students and policymakers.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/801/all-info