The College Cost Reduction Act aims to make college more affordable and transparent for students and families by overhauling how financial aid, loans, and college costs are disclosed and calculated. It requires colleges to use a standardized financial aid offer form, updates the College Scorecard website, and creates a new postsecondary student-level data system to track outcomes like earnings, debt, and completion rates. The bill caps federal Pell Grants and student loans based on a program's "median cost of college," eliminates Parent and Grad PLUS loans starting July 2025, replaces multiple income-driven repayment plans with a single repayment assistance plan, and ends loan origination fees. It also overhauls accountability measures for colleges and accreditors, requiring institutions to reimburse the government for a portion of unpaid student loans tied to poor earnings outcomes, while repealing several Biden-era regulations on gainful employment, borrower defense, and 90/10 revenue rules. The changes would primarily affect colleges, universities, financial aid offices, accrediting agencies, and current and prospective student loan borrowers, with most provisions phasing in between 2024 and 2027.
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