Student Protection and Success Act

The Student Protection and Success Act would establish new accountability measures for colleges and universities that receive federal student aid. The bill would prevent colleges from accessing federal student aid programs if fewer than 15 percent of their students are on track to repay their loans within three years of graduation. Additionally, institutions would be required to make financial contributions based on the portion of student loans that remain unpaid, creating what supporters call a "skin-in-the-game" approach where colleges share responsibility for student loan repayment outcomes.

The bill would also create a College Opportunity Bonus Program that rewards institutions with strong track records of serving low-income students effectively. These bonus payments would be funded through the financial contributions from institutions with poor repayment outcomes. The legislation aims to incentivize colleges to improve career preparation and student outcomes by aligning their financial interests with borrower success. The bill is currently under consideration in the House Committee on Education and Workforce and has bipartisan support in both chambers.