S. 994 · Where this bill is now
In committee
Introduced in the Senate, Mar 12, 2025
What this bill does
In plain words · AI-written from the official summaryCracks down on predatory higher education practices
This bill gives the Department of Education stronger tools to protect students from unfair practices at colleges and universities. It establishes rules about career education programs, requires schools to spend at least 30% of tuition money on actual instruction, and prevents schools from hiding transcripts or blocking students from suing them. The bill also creates new oversight systems to track complaints against colleges, loan servicers, and other education companies.
How it affects you
If you're a student or borrower with federal student loans, this affects you most directly. You'd have clearer protections against colleges that hide behind legal restrictions or withhold your transcript over unpaid balances. The bill sets up a tracking system for complaints, so problems at colleges and loan servicers get documented and reviewed more systematically. For anyone considering a for-profit college or career training program, the rules about earnings standards and instruction spending give you more information to evaluate whether the program is worth the cost.
Read the official summary (Introduced in Senate, Mar 12, 2025)
Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2025 or the PROTECT Students Act of 2025
This bill sets forth provisions to address financial predatory practices in higher education, including by establishing additional protections for students and student loan borrowers.
Specifically, the bill provides statutory authority for Department of Education (ED) regulations related to gainful employment, borrower defense to repayment, and closed school discharges. For example, ED's 2023 gainful employment regulations specify that ED considers a career education program to be preparing students for gainful employment if it meets specified debt-to-earnings or earnings premium measures.
Additionally, the bill prohibits institutions of higher education (IHEs) that participate in federal student aid programs from taking specified actions, such as (1) restricting students' ability to pursue claims against IHEs in court, and (2) withholding official transcripts because of a balance owed by the student.
The bill requires IHEs to spend at least 30% of their tuition and fee revenue on instruction.
The bill also includes additional oversight measures, such as
• providing statutory authority for an enforcement unit within ED's Office of Federal Student Aid to assess complaints against IHEs, third-party servicers, and student loan servicers;
• establishing the For-Profit Education Oversight Coordination Committee within the executive branch; and
• requiring ED to establish and operate a system that tracks complaints or reports of suspicious activity by IHEs, third-party servicers, and student loan servicers.
The bill makes funding available to ED for the administrative costs of operating student aid programs.
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. 994
A BILL
PROTECT Students Act of 2025
Sponsor: Sen. Richard J. Durbin (D-IL) · Introduced Mar 12, 2025 · Education · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 12, 2025: “Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S1706-1715)”
Sections
Title I — Student and taxpayer protections · 5
Title II — Ensuring integrity at institutions of higher education and institutional contractors · 5
Title III — Improving oversight · 7
- Sec. 301Enforcement in the Office of Federal Student AidNo change
- Sec. 302For-Profit Education Oversight Coordination CommitteeNo change
- Sec. 303Establishment and maintenance of complaint resolution and tracking systemNo change
- Sec. 304Reforms to eligibility and certification proceduresNo change
- Sec. 305State oversightNo change
- Sec. 306Accrediting agency oversightNo change
- Sec. 307Mandatory spending for administrative costs of operating the student aid programsNo change