What does Preamble of Student Protection and Success Act do?

This bill amends the Higher Education Act of 1965 It provides for institutional ineligibility based on low cohort repayment rates It requires risk-sharing payments of institutions of higher education

What does SHORT TITLE. of Student Protection and Success Act do?

This bill is formally titled the Student Protection and Success Act

What does INSTITUTIONAL INELIGIBILITY BASED ON LOW COHORT REPAYMENT RATE. of Student Protection and Success Act do?

This section amends the Higher Education Act of 1965 to establish institutional ineligibility for programs under part D based on a low cohort repayment rate. Beginning with fiscal year 2028, an institution with a cohort repayment rate of 15% or less will be ineligible to participate in programs under part D for three fiscal years. Institutions can appeal a loss of eligibility to the Secretary within 30 days and may continue participation during the appeal if they demonstrate an inaccurate calculation. The 'cohort repayment rate' is defined as the percentage of borrowers who are not in default and make at least a one-dollar reduction on their initial student loan principal balance. Certain deferments and forbearance periods are excluded from the cohort repayment rate calculation, including deferments for graduate fellowships, disability rehabilitation, military service, and Peace Corps/Domestic Volunteer Service. The Secretary is required to publish cohort repayment rates for institutions. The bill also amends sections related to Pell grants, the student loan insurance program, and Federal Perkins loans to incorporate this cohort repayment rate ineligibility. Institutions ineligible due to a low cohort repayment rate are also ineligible for Pell grants, the student loan insurance program, and Federal Perkins loans.

What does COLLEGE OPPORTUNITY BONUS PROGRAM. of Student Protection and Success Act do?

This section establishes the College Opportunity Bonus Program under the Higher Education Act of 1965. Beginning in fiscal year 2028, the Secretary will award grants to eligible institutions of higher education. An eligible institution must have a cohort repayment rate greater than 25 percent. Grants will be awarded to institutions demonstrating a strong record of increasing college affordability and success for low- and moderate-income students. Funds can be used to support reforms, including awarding need-based financial aid, enhancing student support services, and establishing accelerated learning opportunities. The amount of grant funds will be based on a formula considering the number of Pell Grant-eligible students, cohort repayment rate of Pell Grant-eligible students, and student service expenditures. Each institution's grant funds are capped at 2.5% of their total annual revenues and investment returns, less auxiliary and hospital revenues. Funds are intended to supplement, not supplant, existing state and institutional funds. The program will be funded by risk-sharing payments received by the Secretary under section 454(e).

What does RISK-SHARING PAYMENTS. of Student Protection and Success Act do?

This section amends Section 454 of the Higher Education Act of 1965 to establish institutional risk-sharing payments. Beginning in fiscal year 2028, participating institutions of higher education will remit payments to the Secretary based on their cohort nonrepayment loan balance. The cohort nonrepayment loan balance is calculated based on borrowers who entered repayment, deferment, or forbearance in the third preceding fiscal year and did not reduce their principal balance by at least $1 in the subsequent three years. Certain deferments and forbearances, such as those for graduate fellowships, military service, Peace Corps volunteers, and approved rehabilitation training programs, are excluded from the nonrepayment calculation. The risk-sharing payment is generally 2% of the cohort nonrepayment loan balance, but capped at 2.5% of the institution’s total annual revenues and investment returns. The amount is determined by subtracting an amount based on the national unemployment rate from the cohort nonrepayment loan balance.

What does REPORT. of Student Protection and Success Act do?

This section requires the Secretary of Education to submit a report to Congress. The report is due within six months of the Student Protection and Success Act's enactment. The report must detail best practices for higher education institutions to improve student loan repayment rates. The report should also include recommendations for institutions, especially those serving a large proportion of low-income students, to improve repayment rates.

What does STUDENT SERVICE EXPENDITURES AND RESOURCES. of Student Protection and Success Act do?

This section amends Section 153(a)(1)(I) of the Education Sciences Reform Act of 2002. The amendment clarifies the definition of 'student service expenditures' to include instruction, information technology, and activities contributing to students' emotional, physical, intellectual, cultural, and social development. The amendment excludes marketing, recruitment, and intercollegiate athletic program expenditures from 'student service expenditures'. The amendment defines 'student service resources' as a measure of an institution's resources potentially allocated to student service expenditures. Student service resources include net tuition revenues, State and local appropriations, endowment income, and revenues related to student housing and food services, less related expenditures.

Back to bills

Student Protection and Success Act

Last updated: 3/17/2026 · Introduced: 3/17/2026

Author: Jeanne Shaheen (D-NH)

TL;DR (AI)

Starting in 2028, institutions with a student loan cohort repayment rate of 15% or less will be ineligible for federal programs like Pell Grants and student loan insurance.
The bill establishes a 'College Opportunity Bonus Program' providing grants to institutions with repayment rates above 25% that demonstrate a commitment to affordability and success for low- and moderate-income students.
Participating institutions will make risk-sharing payments to the Secretary of Education, generally 2% of their cohort nonrepayment loan balance, to offset student loan defaults.
The definition of 'student service expenditures' is broadened to include instruction and student development activities, while excluding marketing and athletic program costs.
The Secretary of Education must report to Congress within six months of the Act's enactment, detailing best practices and recommendations for improving student loan repayment rates.

119th Congressin committeeHR. 8009(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 5 more.

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