This bill creates consumer protections for students pursuing postsecondary education, particularly targeting programs that leave graduates with high debt relative to their earnings potential. The legislation establishes new eligibility requirements for colleges and universities receiving federal student aid funds. Institutions offering programs in licensed occupations must ensure by one year after enactment that graduates can meet licensing requirements in the states where they claim students will be able to work, and must provide required clinical placements or internships. The bill introduces a "debt-to-earnings" metric that measures whether a program's typical graduate loan payment exceeds acceptable thresholds relative to earnings; programs failing this test for two of any three consecutive years lose federal funding eligibility and cannot restart for three years. The measure also applies these earnings standards equally across all types of programs and professions, including service industry jobs, and requires institutions offering distance education to be legally authorized in each state where their students are located. The Secretary of Education must issue implementing regulations within one year of enactment.
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