S. 801 · Where this bill is now
In committee
Introduced in the Senate, Feb 27, 2025
What this bill does
In plain words · AI-written from the official summaryConsolidates federal student loans and changes accreditation rules
This bill simplifies the federal student loan system by combining multiple loan programs into one and gradually eliminates loan forgiveness programs. It also expands which education programs can receive federal aid, allowing apprenticeships and other accredited postsecondary programs to access funding. Schools would have to publish information about their graduates' employment rates and student debt levels, and would face fines based on how many of their borrowers aren't making loan payments on time.
How it affects you
If you're a student borrowing federal loans, you'd be affected by the consolidation into a single program and the phase-out of loan forgiveness options. Schools would need to share more data about graduate outcomes and debt, which could help you compare institutions before enrolling. If you're considering apprenticeships or alternative credential programs, more of these could become eligible for federal aid under the new rules.
Read the official summary (Introduced in Senate, Feb 27, 2025)
Higher Education Reform and Opportunity Act
This bill revises requirements governing student loans and the accreditation of institutions of higher education (IHEs).
Specifically, the bill consolidates federal student loans into one student loan program and phases out loan forgiveness for borrowers.
Additionally, the bill makes postsecondary education courses and programs (e.g., apprenticeship programs) that provide credits toward a postsecondary certification, credential, or degree eligible for federal student aid funding if the courses and programs are accredited by a state that has an alternative accreditation agreement with the Department of Education (ED).
The bill requires IHEs to publish certain enrollment and financial aid information, including (1) the percentage of former financial aid recipients who are employed at various intervals following graduation, and (2) the average amount of total federal student loan debt accrued upon graduation. The Government Accountability Office must compile, study, and report on all such information published by IHEs. Further, the bill prohibits the disclosure of personally identifiable information and directs ED to establish penalties for violations.
Lastly, the bill requires an IHE to pay a default rate fine for a fiscal year in an amount that is equal to the applicable percentage of outstanding federal student loans (i.e., the total amount of loans issued to students for attendance at the IHE for which regular on-time payments are not being made). An IHE shall receive a $400 credit for each graduate of the IHE who received a Federal Pell Grant while enrolled at the IHE during the fiscal year.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 801
A BILL
Higher Education Reform and Opportunity Act
Sponsor: Sen. Mike Lee (R-UT) · Introduced Feb 27, 2025 · Education · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 27, 2025: “Read twice and referred to the Committee on Health, Education, Labor, and Pensions.”