Higher Education Reform and Opportunity Act

The Higher Education Reform and Opportunity Act would make significant changes to how federal student loans operate and how colleges are held accountable. The bill would consolidate multiple federal student loan programs into a single program and gradually eliminate loan forgiveness programs for borrowers. It would also expand federal student aid eligibility to include postsecondary education courses and apprenticeship programs that are accredited through alternative state agreements with the Department of Education.

The bill would require colleges to publicly report data on graduate employment rates at various intervals after graduation and the average federal student loan debt students accumulate. The Government Accountability Office would compile and analyze this information across institutions. Additionally, colleges would face financial penalties based on their student loan default rates, though they could receive credits for each graduate who received a Pell Grant. The bill includes privacy protections to prevent misuse of student information and establishes penalties for violations.

This bill is currently in committee and has not yet been voted on by the full Senate. If enacted, these changes could affect how students borrow for education, which programs qualify for federal aid, and how colleges are financially incentivized to manage student debt outcomes.