Student Loan Reform Act

TL;DR (AI)

• The bill establishes an Institutional Cosigner Program, allowing institutions of higher education to cosign Federal student loans for their students, with the institution becoming obligated to repay the loan if the borrower defaults.
• Institutions participating in the program will have a lower interest rate for cosigned loans, determined by the Secretary based on reduced risk, and will be required to cosign all new eligible direct loans.
• The bill modifies the cohort default rate threshold, setting it at 40% for participating institutions and 30% for non-participating institutions, which affects determinations under the Higher Education Act of 1965.