Overview
Title
To lower the cost of postsecondary education for students and families.
ELI5 AI
H.R. 6951 is a bill that tries to make college cheaper by giving students more help with money, like loans and grants, and asking schools to tell students exactly how much college will really cost.
Summary AI
H.R. 6951, titled "College Cost Reduction Act," aims to make postsecondary education more affordable for students and their families in the United States. The bill proposes measures like creating a standard form for financial aid offers, expanding transparency on college costs, and adjusting student loan limits. Additionally, it introduces the Promise grants to increase financial aid based on student performance and other factors, and it seeks to enhance student success through evidence-based practices.
Published
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Bill Statistics
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AnalysisAI
The bill, known as the "College Cost Reduction Act," seeks to address the rising expenses of postsecondary education by creating a more transparent, equitable, and efficient financial aid system. It introduces reforms aimed at standardizing financial aid offers, managing student loan limits, and ensuring the accountability of educational institutions. The legislation focuses on transparency, affordability, and the quality assurance of higher education institutions, potentially impacting students, families, and educational organizations across the United States.
General Summary
The bill encompasses a variety of changes to existing higher education policies. It proposes standardizing the format and language of financial aid offers through the development of a single, consumer-friendly form. Moreover, it introduces amendments to student loan programs by setting specific limits on borrowing amounts. Another key element is the reformation of the Federal Pell Grant program, linking its value to the median cost of college tariffs and controlling the funds to ensure they align with real educational expenses.
Summary of Significant Issues
One primary concern is the definition of "median cost of college," which forms the basis for both Pell Grant limitations and certain loan limits. This definition might not adequately address the expenses faced by students attending programs with higher costs than the median value. Additionally, the language used throughout the bill is quite specialized and intricate, potentially posing a barrier to comprehension for those unfamiliar with legal and financial terminology.
Furthermore, the requirement for institutions to provide annual reimbursements to the Department of Education if their student cohorts have high non-repayment loan balances might disproportionately burden smaller institutions. This obligation could affect their financial health and ability to support students effectively.
Broad Impacts on the Public
For the general public, the bill's intention to simplify financial aid offers could enhance understanding and transparency for prospective students and their families, allowing them to make more informed choices about their education investments. However, the restriction of Pell Grant amounts to the "median cost of college" might limit financial aid for those attending expensive programs, potentially dissuading some from pursuing certain educational paths.
Impacts on Specific Stakeholders
Students and Families: They may benefit from clearer financial aid offers, leading to better financial planning and reduced confusion about college costs. However, those targeting higher-cost institutions might find their financial aid packages inadequate, affecting their ability to afford such programs.
Educational Institutions: While standardizing the financial aid offer could streamline administrative processes, smaller institutions might face challenges under the reimbursement requirements for non-repayment loan balances. This could strain their finances or force them to reconsider their enrollment and aid strategies.
Accrediting Agencies: The bill's introduction of reforms in accrediting practices, including risk-based evaluations and respecting religious missions, could lead to enhanced accountability but might also slow down the accreditation process. This could affect institutions' operational timelines and possibly their appeal to prospective students.
In conclusion, the "College Cost Reduction Act" aims to tackle significant issues in the cost and management of postsecondary education through comprehensive reforms. While it promises increased transparency and accountability, the potential effects on access and institutional operations suggest that careful consideration and possibly further refinement are necessary to balance its impacts effectively.
Financial Assessment
Summary of Financial Allocations
In H.R. 6951, also known as the "College Cost Reduction Act," several financial measures are proposed to make postsecondary education more affordable. The bill introduces Promise grants, where eligible institutions can receive grant amounts calculated based on specific formulas. These grants are determined by multiplying the average value-added earnings of students by factors such as the total dollar amount from Federal Pell Grants and the percentage of low-income student attendees. This financial allocation targets institutions showing improvement in student outcomes, thereby promoting efficiency in educational spending.
The bill also suggests changes to student loans, including loan limits and the repeal of origination fees. Specifically, the maximum aggregate amount a graduate student can borrow is set to $100,000, and for professionals, it's $150,000. Undergraduate limits are significantly lower, with a capped aggregate of $50,000. This restructuring aims to control student debt but may impact access to loans for students in high-cost programs.
Financial Issues and Implications
One of the key financial issues raised by the bill is the definition of "median cost of college," which could impact students at more expensive institutions negatively. If the median cost does not accurately represent actual expenses, this could reduce their access to anticipated financial aid, especially Pell Grants. The Pell Grant awards are affected by this definition because they may not cover the actual cost for students attending higher-priced institutions.
The bill introduces a reimbursement system for institutions, demanding repayments based on the non-repayment balance of student loans. This could significantly affect smaller institutions financially, as it imposes administrative burdens and risks of penalties for delays in payments. The financial stamina of these institutions could be strained, potentially limiting their ability to support students adequately.
Another notable financial allocation is the authorization of $45,000,000 annually from 2026 to 2031 for competitive grants to improve student success services. This funding is an investment aimed at increasing retention and completion rates, especially for high-need students. However, the administration of such grants could be challenging without clear management strategies and sufficient administrative infrastructure, which the bill does not fully address.
Conclusion
Overall, while H.R. 6951 takes significant steps towards reducing college costs through several financial mechanisms, it potentially introduces complexities and challenges. The intricacies of the financial allocations and the dependencies on calculated student performance outcomes might create barriers rather than easing the financial burden on students and educational institutions. Moreover, the bill's impact on financial accessibility and institutional stability, especially concerning small and less-financially robust schools, requires careful assessment and potential adjustment to fulfill its intended purpose efficiently.
Issues
The definition of 'median cost of college' (Sections 201, 472A, and 211) could disadvantage students attending more expensive institutions if the median cost does not accurately reflect their actual educational expenses. This could also affect the Federal Pell Grant awards, potentially limiting financial aid for those in high-cost programs.
The bill's extensive reliance on complex legal and financial language (e.g., Sections 2, 101, 111, 113, 221) might make it difficult for the general public and non-experts to understand crucial information related to postsecondary education costs and financial aid offers.
The requirement for institutions to provide annual reimbursements to the Secretary for student cohorts based on non-repayment loan balances (Section 301) could introduce significant administrative burdens and financial penalties, particularly for smaller institutions, leading to potential regulatory and financial challenges.
The introduction of a complex reimbursement system and penalty structure for late payments in Section 301 may disproportionately affect smaller institutions with limited financial resources, potentially impacting their financial stability and student support services.
Sections 221 and 225 introduce significant changes to loan limits and the repeal of origination fees, which may impact both borrowers and government funding mechanisms for student loans, affecting access to and affordability of higher education.
The ambiguous language used in Sections 112 and 113 regarding the College Scorecard website and the postsecondary student data system may present challenges in maintaining adequate data privacy and security while ensuring transparency and usefulness of consumer information.
The amendment limiting the Secretary's ability to issue economically significant regulations (Section 303) could hinder necessary or beneficial regulations, potentially impacting public safety or environmental protections in the context of higher education.
The provisions for developing standardized financial aid offer forms (Sections 111 and 124) impose deadlines that could be too short for comprehensive testing and may result in significant administrative costs without clear management strategies.
The complex process for accrediting agency recognition and the introduction of alternative quality assurance experimental sites (Sections 311 and 313) may slow down the accreditation process and introduce regulatory ambiguities, affecting institutional operations and student perceptions of educational quality.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title; table of contents Read Opens in new tab
Summary AI
The College Cost Reduction Act introduces measures to enhance transparency, improve access, and promote accountability in higher education. It includes provisions for setting loan limits, offering financial aid, and ensuring fair credit transfers, along with strengthening student data privacy and recognizing accrediting agencies.
2. References Read Opens in new tab
Summary AI
The section explains that when the bill mentions changes to the Higher Education Act of 1965, it's referring to updates made by the FAFSA Simplification Act, especially those in the 2021 Appropriations Act and its subsequent Technical Corrections Act.
101. Definitions Read Opens in new tab
Summary AI
The section amends the Higher Education Act to define various terms related to higher education programs, such as CIP code, credential level, program of study, and value-added earnings. These definitions help clarify how educational programs are categorized, the time required for program completion, and how the financial benefits of completing certain programs are calculated.
111. Financial aid offers Read Opens in new tab
Summary AI
The bill introduces a standardized form for financial aid offers from colleges and universities, which aims to make it easier for students and their families to understand education costs and financial support options. Developed in consultation with various stakeholders, the form includes clear information on costs, aid types like grants and loans, and processes for accepting aid, all intended to help students make more informed financial decisions.
124. Institution financial aid offer form Read Opens in new tab
Summary AI
The bill mandates that the Secretary of Education, in collaboration with other federal agencies and stakeholders, create a standard form for financial aid offers to ensure clarity and uniformity. This form must detail costs, grants, scholarships, loans, and work-study opportunities in a simple, consumer-friendly manner, helping students make informed decisions about their college expenses.
112. College scorecard website Read Opens in new tab
Summary AI
The text describes amendments to the Higher Education Act, which establish and define the "College Scorecard" website. The Secretary is required to provide comprehensive information about colleges and programs, including costs, financial aid, student outcomes, and other characteristics, and ensure this data is accessible and updated, while maintaining student privacy.
Money References
- “(H) Information on college costs and financial aid, including average, median, minimum, and maximum values of— “(i) the cost of attendance, including such cost disaggregated by the costs described in paragraphs (1) through (14) of section 472(a); “(ii) the grants and scholarships received by students at the institution and the number and percentage of such students receiving such grants and scholarships, disaggregated by source and whether such aid is need-based, merit-based, an athletic scholarship, or other type of grant or scholarship; and “(iii) the total net price required for completion for students who received Federal financial assistance described in paragraph (2)(I). “(I) Information on student debt and repayment, including— “(i) the average, median, minimum, and maximum amounts borrowed by students under title IV; and “(ii) information with respect to repayment of loans made under title IV, including borrower-based repayment rates, dollar-based repayment rates, and time spent in repayment. “
113. Postsecondary student data system Read Opens in new tab
Summary AI
The section outlines the establishment of a secure, privacy-protected data system for postsecondary students by the National Center for Education Statistics, aimed at evaluating student patterns and higher education costs while minimizing duplicate data reporting from institutions. It specifies the data elements, privacy protections, public information access, permissible disclosures, and emphasizes the secure handling of personally identifiable information, ensuring compliance with federal privacy laws.
114. Database of student information prohibited Read Opens in new tab
Summary AI
The text prohibits databases of student information, with some exceptions for existing systems necessary for specific education programs or required by law. Additionally, it requires educational institutions to submit data for educational statistics and aims to reduce reporting burdens on these institutions whenever possible.
201. Amount of need; cost of attendance; median cost of college Read Opens in new tab
Summary AI
The section outlines changes to financial need calculations for college students. From the 2024-2025 school year, the "cost of attendance" will be used, transitioning to the "median cost of college" from 2025-2026 onwards, and allows certain assets like family farms and small businesses to be exempt when determining financial aid eligibility.
472A. Determination of median cost of college Read Opens in new tab
Summary AI
The section explains that the "median cost of college" refers to the middle value of the costs students pay to attend a program at colleges or universities, calculated from the previous year for that program.
211. Federal Pell Grant program Read Opens in new tab
Summary AI
In the Federal Pell Grant program, starting from the 2025-2026 award year, the amount a student can receive will not be allowed to exceed the median cost of attending their college program. If a student's grant is more than this median cost, it will be reduced to match the median cost.
212. Campus-based aid programs Read Opens in new tab
Summary AI
The bill proposes to end funding for the Leveraging Educational Assistance Partnership Program starting October 1, 2026, and replace it with PROMISE grants aimed at improving postsecondary education affordability and access. These grants will be awarded based on performance criteria to eligible institutions, which must meet specific conditions, including guaranteeing the total price for completion of education programs and using funds to enhance student success and economic mobility.
Money References
- “(a) Grant amount formula.— “(1) FORMULA.—Subject to subsection (b), the amount of a PROMISE grant for an eligible institution for each year of the grant period shall be determined by the Secretary annually and shall be equal to— “(A) the amount determined by multiplying— “(i) the lesser of— “(I) the difference determined by subtracting one from the quotient of— “(aa) the average, for the 3 most recent award years for which data are available, of the median value-added earnings (as defined in section 103) for each such award year of students who completed any program of study of the institution; divided by “(bb) the average for the 3 most recent award years, of the maximum total price applicable for each such award year to students enrolled in the institution in any program of study who received financial aid under this title; or “(II) the number two; “(ii) the average, for the 3 most recent award years, of the total dollar amount of Federal Pell Grants awarded to students enrolled in the institution in each such award year; and “(iii) the average, for the 3 most recent award years, of the percentage of low-income students who received Federal financial assistance under this title who were enrolled in the institution in each such award year who— “(I) completed a program of study at the institution within 100 percent of the program length of such program; or “(II) only in the case of a two-year institution or a less than two-year institution— “(aa) transfer to a four-year institution; and “(bb) within 4 years after first enrolling at the two-year or less than two-year institution, complete a program of study at the four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; minus “(B) the sum of— “(i) the amount allocated to the institution under part C of title IV for the most recent fiscal year; and “(ii) the amount allocated to the institution under subpart 3 of part A of title IV for the most recent fiscal year.
- “(b) Maximum grant amount.—Notwithstanding subsection (a), the maximum amount an eligible institution may receive annually for a grant under this subpart shall be the amount equal to— “(1) the average, for the 3 most recent award years, of the number of students enrolled in the institution in an award year who receive Federal financial aid under this title; multiplied by “(2) $5,000.
415A. Purpose Read Opens in new tab
Summary AI
The purpose of this section is to offer grants focused on performance to help colleges make costs more predictable for students and families, boost access to higher education and economic opportunities, and ensure that students, schools, and taxpayers benefit financially from their investments in higher education.
415B. Promise grants Read Opens in new tab
Summary AI
The government will start awarding PROMISE grants from the 2026-2027 school year to support certain institutions. These grants are based on performance and last for six years, with funding determined by specific rules.
415C. Eligible institutions; application Read Opens in new tab
Summary AI
Eligible institutions for a PROMISE grant must be higher education institutions that exclude certain types, must meet maximum price guarantee requirements, and must submit applications detailing their plans for using grant funds to improve postsecondary affordability, access, and success. These institutions are also required to determine and publish maximum total price information for each program, provide students with price guarantees, and evaluate and report the effectiveness of their grant fund usage.
415D. Grant amounts; flexible use of funds Read Opens in new tab
Summary AI
The section describes the PROMISE grant system for educational institutions, outlining how grant amounts are calculated based on factors like student earnings and Pell Grant awards, with a cap set by the average number of students receiving federal aid multiplied by $5,000. It also details how institutions can flexibly use these funds for enhancing education affordability, access, and student success, and allows them to transfer funds to better meet student needs.
Money References
- (a) Grant amount formula.— (1) FORMULA.—Subject to subsection (b), the amount of a PROMISE grant for an eligible institution for each year of the grant period shall be determined by the Secretary annually and shall be equal to— (A) the amount determined by multiplying— (i) the lesser of— (I) the difference determined by subtracting one from the quotient of— (aa) the average, for the 3 most recent award years for which data are available, of the median value-added earnings (as defined in section 103) for each such award year of students who completed any program of study of the institution; divided by (bb) the average for the 3 most recent award years, of the maximum total price applicable for each such award year to students enrolled in the institution in any program of study who received financial aid under this title; or (II) the number two; (ii) the average, for the 3 most recent award years, of the total dollar amount of Federal Pell Grants awarded to students enrolled in the institution in each such award year; and (iii) the average, for the 3 most recent award years, of the percentage of low-income students who received Federal financial assistance under this title who were enrolled in the institution in each such award year who— (I) completed a program of study at the institution within 100 percent of the program length of such program; or (II) only in the case of a two-year institution or a less than two-year institution— (aa) transfer to a four-year institution; and (bb) within 4 years after first enrolling at the two-year or less than two-year institution, complete a program of study at the four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; minus (B) the sum of— (i) the amount allocated to the institution under part C of title IV for the most recent fiscal year; and (ii) the amount allocated to the institution under subpart 3 of part A of title IV for the most recent fiscal year. (2) DEFINITION OF LOW-INCOME.—In this section, the term “low-income”, when used with respect to a student, means that the student’s family income does not exceed the maximum income in the lowest income category described in section 132(c)(2)(A)(i).
- (b) Maximum grant amount.—Notwithstanding subsection (a), the maximum amount an eligible institution may receive annually for a grant under this subpart shall be the amount equal to— (1) the average, for the 3 most recent award years, of the number of students enrolled in the institution in an award year who receive Federal financial aid under this title; multiplied by (2) $5,000. (c) Flexible use of
415E. Authorization of appropriations Read Opens in new tab
Summary AI
The section outlines the funds available to the Secretary to implement a subpart, using both reimbursements received and additional funds from previous years starting from the 2026-2027 award year. If there aren't enough funds to support all eligible institutions, priority will be given to those with the highest percentage of low-income students.
221. Loan limits Read Opens in new tab
Summary AI
The document outlines changes to loan limits for Federal Direct Stafford and Unsubsidized Stafford loans starting July 1, 2025. It specifies annual and total loan limits for graduate, professional, and undergraduate students, introduces exceptions for certain students, and allows institutions to set specific loan limits. Additionally, it stops the issuance of Federal Direct PLUS loans to parents and students beyond this date.
Money References
- “(D) AGGREGATE LIMITS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that— “(i) a graduate student may borrow shall be $100,000; and “(ii) a professional student may borrow shall be $150,000.
- (ii) AGGREGATE LIMITS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, with respect to an undergraduate student— “(I) the maximum aggregate amount of Federal Direct Stafford loans and Federal Direct Unsubsidized Stafford loans that may be borrowed shall be $50,000; “(II) the maximum aggregate amount of Federal Direct Stafford loans that may be borrowed shall be $23,000; and “(III) the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that may be borrowed shall be $50,000.
- “(C) ALL STUDENTS.—The maximum aggregate amount of loans made, insured, or guaranteed under this title to a student shall be $200,000.”. (3) INSTITUTIONALLY DETERMINED LIMITS.—Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is further amended by adding at the end the following: “(5) INSTITUTIONALLY DETERMINED LIMITS.— “(A) IN GENERAL.—Notwithstanding any other provision of this subsection, an eligible institution (at the discretion of a financial aid administrator at the institution) may prorate or limit the amount of a loan any student who is enrolled in a program of study for a period of instruction beginning on or after July 1, 2024, at that institution, may borrow under this part for an academic year— “(i) if the institution can reasonably demonstrate that outstanding amounts owed of loans made under this title are or would be excessive for students who complete such program, based on the most recently available data from the College Scorecard (or successor website of the Department) on— “(I) the median of the value-added earnings of students who complete such program; and “(II) the median debt owed, and the repayment rate, on loans made under this part, of such students; “(ii) in a case in which the student is enrolled on a less than full-time basis or the student is enrolled for less than the period of enrollment to which the annual loan limit applies under this subsection, based on the student’s enrollment status; or “(iii) based on the year of the program for which the student is seeking such loan. “(B) APPLICATION TO ALL STUDENTS.—Any proration or limiting of loan amounts under subparagraph (A) shall be applied in the same manner to all students enrolled in a program of study.
222. Loan repayment Read Opens in new tab
Summary AI
The section outlines changes to loan repayment options starting July 1, 2024, under the Higher Education Act. Borrowers of new loans will have a choice between a standard repayment plan or a repayment assistance plan, and the Secretary of Education will manage defaults and offer support to distressed borrowers while ensuring loans are repaid under one of these specified plans.
223. Loan rehabilitation Read Opens in new tab
Summary AI
The section changes the Higher Education Act of 1965, allowing certain loans to be rehabilitated up to two times instead of just once.
224. Interest capitalization Read Opens in new tab
Summary AI
The section outlines amendments to the Higher Education Act of 1965, specifying that interest on certain types of federal student loans, such as Federal PLUS, unsubsidized Stafford loans, and loans under income-based repayment plans, should not be capitalized, meaning unpaid interest should not be added to the loan balance. Instead, interest is required to be paid monthly or quarterly, unless otherwise agreed upon, and the Department of Education will regulate how accrued but uncapitalized interest is handled.
225. Origination fees Read Opens in new tab
Summary AI
This section of the bill repeals the origination fees for certain federal student loans. The change will apply to loans first disbursed, or applications for Federal Direct Consolidation Loans received, on or after July 1, 2024.
301. Agreements with institutions Read Opens in new tab
Summary AI
The section of the bill amends the Higher Education Act to require colleges that participate in the federal student loan program to repay the government each year for student loans that are not being paid back. This repayment is based on student groups who either complete or do not finish their studies, with specific rules and penalties for late payments and provisions for reducing repayments if certain loan programs are voluntarily stopped by the institution.
302. Regulatory relief Read Opens in new tab
Summary AI
The section outlines the repeal of several regulations related to education, including financial responsibility and gainful employment rules, established by the Department of Education, and blocks the Secretary of Education from enacting similar regulations without explicit approval from Congress. It also details amendments to existing laws to address changes in institutional ownership and financial transparency, along with imposing certain conditions and fees that institutions must comply with during application processes and providing specific procedures for program review activities.
Money References
- “(D) In no case may any fee remitted under subparagraph (A) or (B) exceed $120,000 for any transaction (or pretransaction) application, nor may the Secretary require an institution that has paid a fee under subparagraph (B) to pay an additional fee under subparagraph (A). “(6)(A) The Secretary shall approve or deny a materially complete application (including pretransaction reviews and conversion applications) submitted under this section as soon as practicable and not later than the 90-day period beginning on the date of receipt of such an application, except that in a case in which the Secretary determines, on a nondelegable basis, that good cause exists to not make the determination during such 90-day period, the Secretary shall notify the institution in writing detailing the reasons for a good cause extension.
- “(B) Each institution that is subject to the monitoring period under this paragraph shall remit an annual fee to the Secretary— “(i) in an amount equal to 0.15 percent of the total revenue derived from this title by such institution for the most recent fiscal year for which data is available; and “(ii) that shall be exclusively for expenses related to monitoring of the institution for the period described in subparagraph (A)— “(I) of which 50 percent shall be used by the Secretary, without further appropriation, exclusively for expenses related to monitoring of the institution during such period; and “(II) of which 50 percent shall be remitted by the Secretary to the Commissioner of Internal Revenue, to be available to such Commissioner, without further appropriation, exclusively for monitoring compliance with the Internal Revenue Code of such institution during such period. “(C) An institution may not be subject to an annual fee under subparagraph (B) for monitoring related to a conversion that exceeds $60,000. “(D) If the Secretary determines that an institution should be subject to the monitoring under this paragraph beyond the 5-year period described in subparagraph (A), the Secretary shall provide the reasons justifying an extension in writing to the institution (and in the Federal Register) at least 30 days before the expiration of such period.
303. Limitation on authority of Secretary to propose or issue regulations and Executive actions Read Opens in new tab
Summary AI
The amendment adds a section to the Higher Education Act of 1965 that limits the Secretary's authority to propose or issue any regulations or executive actions that are economically significant and would increase subsidy costs. It specifies that if a draft, proposed, or final regulation or action has an economic impact of $100 million or more annually or negatively affects major aspects like the economy, jobs, or public safety, it cannot move forward.
Money References
- “(d) Definition.—In this section, the term ‘economically significant’, when used with respect to a draft, proposed, or final regulation or executive action, means that the regulation or executive action is likely, as determined by the Secretary— “(1) to have an annual effect on the economy of $100,000,000 or more; or “(2) adversely to affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities.”.
492A. Limitation on authority of the secretary to propose or issue regulations and executive actions Read Opens in new tab
Summary AI
The section limits the Secretary's ability to propose or issue regulations and executive actions by requiring an analysis to determine if they are "economically significant." If a regulation or action is found to be economically significant and increases a subsidy cost, it cannot proceed. Additionally, any required analysis must be conducted alongside other statutory cost analyses. "Economically significant" refers to any action likely to affect the economy by $100 million or more or materially impact sectors such as jobs or public health.
Money References
- (d) Definition.—In this section, the term “economically significant”, when used with respect to a draft, proposed, or final regulation or executive action, means that the regulation or executive action is likely, as determined by the Secretary— (1) to have an annual effect on the economy of $100,000,000 or more; or (2) adversely to affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities.
304. Office of Federal Student Aid Read Opens in new tab
Summary AI
The section modifies existing U.S. laws to establish that activities related to federal student loans, like loan origination, servicing, and collection, will not be regulated by state-level laws. Additionally, it requires that student loan servicers receive clear, written guidance at least 30 days before any contract change becomes effective, and only guidance in certain formal formats will be binding.
311. Accrediting agency recognition Read Opens in new tab
Summary AI
The section in the bill outlines changes to the criteria and procedures for accrediting agencies in higher education. It emphasizes transparency, independence, risk-based evaluations, and respect for religious missions, while also ensuring protection against bias or political influence.
312. National Advisory Committee on Institutional Quality and Integrity (NACIQI) Read Opens in new tab
Summary AI
The section amends rules related to the National Advisory Committee on Institutional Quality and Integrity (NACIQI) by clarifying committee membership guidelines, such as disqualifying individuals with significant conflicts of interest, updating terms used, and extending the committee's authorization until September 30, 2028. Additionally, it mandates listing recused members in meeting agendas and removes certain regulatory functions previously included.
313. Alternative quality assurance experimental site initiative Read Opens in new tab
Summary AI
The section amends the Higher Education Act of 1965 to create an initiative allowing certain educational entities to participate in experiments where they can operate without traditional accreditation for five years. These entities must apply to participate, and the Secretary will choose participants who can demonstrate successful student outcomes and financial risk-sharing. The Secretary can waive specific requirements for these entities and will evaluate their performance to potentially recommend changes to the quality assurance process in higher education.
321. Postsecondary student success grants Read Opens in new tab
Summary AI
The section outlines changes to a part of the Higher Education Act of 1965, establishing grants to improve college success for high-need students. It defines terms such as "completion rate" and "eligible entity," explains grant application requirements, the use of funds, and details the evaluation process for funded programs, while setting aside specific funds for Indian entities and research.
Money References
- “(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection, $45,000,000, for each of fiscal years 2026 through 2031.”; and (2) by striking sections 742 through 745. ---
322. Reverse Transfer Efficiency Act Read Opens in new tab
Summary AI
The Reverse Transfer Efficiency Act amends the General Education Provisions Act to allow colleges to receive a student's past course records to help them complete their college degree. This can only happen if the student gives written permission first.
323. Transparent and fair transfer of credit policies Read Opens in new tab
Summary AI
The amendment to the Higher Education Act requires colleges to fairly evaluate transfer credits and prohibits them from denying credits solely based on the accrediting body of the other institution, as long as it is recognized by the Secretary of Education.