Higher Education Reform and Opportunity Act

The Higher Education Reform and Opportunity Act proposes significant changes to how the federal government funds and oversees postsecondary education. If enacted, the bill would consolidate various federal student loan options into a single program and phase out existing loan forgiveness programs for borrowers. It also aims to expand access to federal student aid by allowing states to develop their own accreditation systems. This would permit students to use federal funds for a wider range of programs, such as apprenticeships and specialized certifications, provided they meet state-defined standards.

To increase transparency, the bill would require colleges and universities to publish data on their graduates' employment rates and the average debt students carry upon graduation. Additionally, the legislation introduces a financial accountability measure for schools by requiring them to pay fines based on the number of their former students who fall behind on loan payments. However, schools would receive a $400 credit for every Pell Grant recipient who graduates, potentially incentivizing institutions to support low-income students through to completion.