Bill · H.R. 1739· House(119-HR-1739)
Higher Education Reform and Opportunity Act
- Introduced
- 2/27/2025
- Last activity
- 2/27/2025 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Chip Roy
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Higher Education Reform and Opportunity Act aims to amend the Higher Education Act of 1965 to implement new fiscal and accreditation standards. It introduces "Federal Direct simplification loans" to replace existing loan structures, which are scheduled to be phased out by September 30, 2030. The bill also establishes a State alternative accreditation system to provide more flexibility for various educational programs. Additionally, it requires institutions to publish specific data regarding student success and financial aid to increase transparency. Finally, it implements new accountability measures, including fines for institutions based on student loan default rates.
Yes
Does this make what the government does easier for the public to see?+5
The bill requires higher education institutions to publish specific data regarding enrollment, graduation, and earnings on their websites.
Does this give people more control over their personal data?+2
The bill requires institutions to comply with FERPA when publishing student data.
The opposite· 3 of 7
Does this reduce what student borrowers owe or repay?-6
The bill eliminates eligibility for many existing student loan forgiveness programs for new loans.
Would households on low incomes be better off under this?-4
The elimination of loan forgiveness and changes to loan structures may disproportionately affect low-income students.
Does this make college cost less?-4
The bill phases out student loan forgiveness for loans made after July 1, 2026.
Who it would affect, and how
Potential Positive Impacts for People
-
New Loan Options: The bill creates "Federal Direct simplification loans" which include specific interest rate structures for undergraduate and graduate students (Section 460A).
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Increased Transparency: Institutions will be required to publish annual data on their websites regarding student enrollment, graduation rates, median earnings, and loan debt (Section 494B).
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Flexible Accreditation: States can establish alternative accreditation systems, which may include postsecondary apprenticeship programs and other specialized courses (Section 498C).
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Loan Repayment Flexibility: Borrowers of the new Federal Direct simplification loans are permitted to accelerate their repayment without penalty (Section 460A).
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Financial Counseling: Institutions are granted flexibility to provide additional financial counseling or literacy training to students (Section 485(l)).
Potential Negative Impacts for People
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Loan Limitations: New borrowers will be prohibited from accessing certain existing loan types after June 30, 2026 (Section 451(e)).
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Phasing Out of Loan Forgiveness: The bill moves to eliminate loan forgiveness for loans made on or after July 1, 2026 (Section 455 and Section 493C).
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Loan Cap Restrictions: Institutions may be allowed to limit the amount of simplification loans a student can borrow to the specific cost of tuition and fees (Section 460A).
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Loss of Eligibility: Borrowers who take out a Federal Direct simplification loan before September 30, 2030, lose their eligibility to borrow under the previous loan structures (Section 451(e)).
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Institutional Penalties: Schools face annual fines based on a percentage of their outstanding loans for students not making on-time payments (Section 401).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households-4Good For Students-3Good For Young Adults-3
- Education And Technology
- Improves Data Privacy+2Improves Student Loan Relief-6Improves College Affordability-4
- Governance And Ideology
- Improves Government Transparency+5
- Economy And Finance
- Improves Small Business Support-2
- Social Issues And Justice
- Improves Affordable Housing-2
- 2/27/2025
- Referred to the House Committee on Education and Workforce.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.