Bill · S. 994· Senate(119-S-994)
PROTECT Students Act of 2025
- Introduced
- 3/12/2025
- Last activity
- 3/12/2025 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S1706-1715)
- Sponsored by
- Richard Durbin
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
The PROTECT Students Act of 2025 aims to increase accountability in higher education to protect students and taxpayers. It establishes new standards for gainful employment by tracking debt-to-earnings rates and earnings premiums. The bill expands borrower defense to repayment and simplifies the process for loan discharge when schools close. It also prohibits institutions from using certain legal restrictions to prevent students from pursuing claims. Additionally, the act strengthens federal oversight of third-party servicers and accrediting agencies.
Who it would affect, and how
Potential Positive Impacts for People
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Financial Transparency for Students: The bill introduces debt-to-earnings and earnings premium standards to help students understand the actual value of their programs (Sec. 101).
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Protection Against Misrepresentation: Borrowers can receive loan discharges if an institution makes substantial misrepresentations or engages in deceptive recruitment (Sec. 102).
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Relief for Students of Closed Schools: Students whose institutions close or fail to provide instruction can have their loan liabilities discharged (Sec. 103).
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Increased Legal Access: The act prevents institutions from using arbitration or other agreements to restrict a student's ability to pursue legal claims (Sec. 104).
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Protection of Academic Records: Institutions are prohibited from withholding official transcripts due to an outstanding balance (Sec. 104).
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Improved Information Accuracy: The bill requires consistent definitions for job placement rates to minimize misleading information (Sec. 202).
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Better Oversight of Third-Party Servicers: Federal oversight is updated to include activities related to the delivery of funds and student recruitment (Sec. 201).
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Enhanced Complaint Resolution: A new complaint tracking system will allow for the centralized collection and monitoring of reports regarding educational practices (Sec. 303).
Potential Negative Impacts for People
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Restrictions on Program Funding: Programs that fail to meet the new debt-to-earnings or earnings premium standards for two out of three years may be ineligible to disburse funds (Sec. 101).
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Financial Burdens on Institutions: The bill allows the Secretary to assess and recoup liabilities from institutions due to loan discharges or misconduct (Sec. 205).
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Mandatory Spending Requirements: Institutions may be required to spend a specific percentage of their tuition and fee revenue on instruction (Sec. 203).
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New Compliance Obligations: Institutions must comply with new requirements regarding the reporting of expenditures on marketing, recruitment, and advertising (Sec. s 203 and 401).
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Strict Eligibility Standards: The bill changes eligibility and certification procedures, requiring institutions to demonstrate full compliance with all provisions (Sec. 304).
- 3/12/2025
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S1706-1715)
- 2 Cosponsors added.
- Introduced in Senate
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.
Jeff MerkleyDemocrat · Oregon
Elizabeth WarrenDemocrat · Massachusetts