Student Protection and Success Act

The Student Protection and Success Act, currently under committee review, would establish new accountability measures for colleges and universities that participate in federal student loan programs. The bill would make colleges ineligible to accept federal student loans and grants if less than 15 percent of their students begin repaying their loans within three years of graduating or leaving school. Institutions would lose eligibility for three years, though they could appeal if they believe the calculation is incorrect.

To offset potential negative impacts on schools serving disadvantaged populations, the bill would create a bonus grant program funded through risk-sharing fees paid by institutions. Schools would pay fees based on the portion of student loans not being repaid, with fees adjusted for unemployment rates. These collected funds would be distributed as grants to colleges with strong records of serving low-income and moderate-income students, which could use the money for additional financial aid, academic support services, and accelerated learning programs.