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Degrees Not Debt Act This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to establish a federal-state partnership to promote state investment in public higher education. It directs the Department of Education to award matching block grants to states to reduce tuition costs and support the enrollment, retention, and degree completion of low-income students at public institutions of higher education. A state that receives a grant must waive any unmet financial need for certain low-income students, maintain or increase per-student operating support, maintain state-based financial aid levels, and limit tuition increases at public institutions of higher education. The bill prohibits the use of grant funds to increase an institution's endowment or to modernize, renovate, or repair athletic facilities.

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