To amend the Higher Education Act of 1965 to direct the Secretary of Education to carry out a program under which an institution of higher education may elect to cosign Federal student loans made to students attending the institution, and for other purposes.
About This Bill
Committee
Latest Action · May 12, 2026
Referred to the House Committee on Education and Workforce.
This bill creates a voluntary program allowing colleges and universities to cosign federal student loans for their students, beginning July 1, 2026. Participating institutions would be required to cosign all eligible direct loans made to their enrolled students and would assume responsibility for repaying defaulted loans after 90 days of non-payment, following a standard 10-year repayment schedule. In exchange for taking on this financial risk, loans cosigned by participating institutions would receive a reduced interest rate set by the Secretary of Education based on the lower risk the cosigner provides. The bill also raises the cohort default rate threshold for institutions participating in the cosigner program from 30 percent to 40 percent, giving them more lenient standards for maintaining federal student aid eligibility. The Department of Education would publish an annual list of participating institutions on its website so students can see which schools offer this program.
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