House to vote on bill that would put responsibility on colleges for unpaid student loans
The House of Representatives could vote on a bill that would place responsibility on colleges for unpaid student loans.
The House of Representatives could vote on a bill that would place responsibility on colleges for unpaid student loans.
The College Cost Reduction Act, which was introduced in January, could get a vote before a new Congress is sworn in, according to Inside Higher Ed.
According to the outlet, the bill would require colleges to pay a yearly penalty if any students have loans that go unpaid. The legislation uses a form of “risk-sharing” to hold colleges and universities accountable for unpaid student loans, which has attracted support from lawmakers in both parties.
Another component of the bill would prevent colleges from “endlessly raising tuition,” according to a fact sheet for the legislation.
Specifically, the bill would require colleges to advertise the total cost of a degree program before students enroll.
Rep. Virginia Foxx (R-NC), who authored the bill, said that there’s a massive need for reform in higher education, following the release of a Congressional Budget Office report in May which estimated that the bill would save taxpayers $185 billion over the next 10 years.
“The state of postsecondary education in America is one of pure dilapidation—the time for serious, meaningful reform is now. CBO’s estimate for the College Cost Reduction Act is a testament to the commonsense solutions embedded in this landmark legislation that will bring much-needed accountability, transparency, and affordability measures and deliver the kind of education students need and our economy demands. Lowering the costs and ensuring value for students and taxpayers is not an option—it’s a mandate that must be upheld,” Foxx said.
