Bill · H.R. 8759· House(119-HR-8759)
Student Loan Reform Act
- Introduced
- 5/12/2026
- Last activity
- 5/12/2026 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Scott Perry
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Student Loan Reform Act proposes an amendment to the Higher Education Act of 1965 to establish an Institutional Cosigner Program. Under this program, higher education institutions can elect to cosign all eligible direct loans for students enrolled at that school for an academic year. If a student defaults on a loan and it is not rehabilitated after 90 days, the institution must assume the obligation to repay the principal and interest via a 10-year standard repayment plan. Participating institutions would benefit from a reduced interest rate determined by the Secretary of Education. Additionally, the bill adjusts the cohort default rate thresholds for institutions participating in the program.
Yes· 3 of 4
Would students be better off under this?+5
Students attending participating institutions benefit from lower interest rates on their loans.
Does this make college cost less?+5
The bill provides for a reduced interest rate on eligible direct loans for students at participating institutions.
Would people in their twenties and thirties be better off under this?+4
Students in their twenties and thirties may benefit from lower interest rates on their loans.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Lower Interest Rates for Borrowers: Students attending participating institutions could receive loans with an interest rate that is lower than the standard rate, as the rate is reduced proportionally to the reduced risk posed by the loan (Section 2(e)).
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Increased Default Rate Thresholds for Institutions: Institutions participating in the program would have a higher threshold percentage of 40 percent for determining cohort default rates, compared to the 30 percent threshold for non-participating institutions (Section 3(a)).
Potential Negative Impacts for People
-
Financial Burden on Institutions: If a student defaults on a loan and the debt is not rehabilitated after 90 days, the participating institution is obligated to repay the outstanding balance of principal and interest through a 10-year standard repayment plan (Section 2(d)(1) and (2)).
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Continued Default Status for Borrowers: Even if an institution is making payments on a defaulted loan, the borrower is still considered to be in default for purposes of adverse credit reporting and Federal debt collection procedures (Section 2(d)(4)).
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 Students+5Good For Young Adults+4Good For Low Income Households+3
- Education And Technology
- Improves College Affordability+5
- 5/12/2026
- Referred to the House Committee on Education and Workforce.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.