Bill would cut off federal aid to colleges with low loan repayment rates
In committeeS. 4114Latest action
Sponsor: Jeanne Shaheen · Senator · NH
AIDecoded by AI · checked against the recordRead the official text
Official title: Student Protection and Success Act
119th Congress
Topics: Education
Introduced:
Read the official bill on Congress.govIn plain words
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Starting in 2028, colleges where too few borrowers repay loans could lose federal student aid for three years.
50-second read · 5 questions answered below
What does this do?
The Student Protection and Success Act would cut off colleges from federal student loans, Pell Grants, and other federal aid for three years if 15% or fewer of their borrowers make even a $1 loan payment within two years of entering repayment, starting in 2028. It also creates a "College Opportunity Bonus Program" giving grants to colleges with strong repayment rates (above 25%) and many low-income students, and a "risk-sharing" system charging colleges penalties based on borrower repayment failures.
Who does it affect?
The bill mainly affects colleges and universities in federal financial aid programs, particularly for-profit or under-resourced schools with poor repayment outcomes, and their students.
Why does it matter?
Schools losing aid eligibility could leave enrolled students without access to federal loans or grants, while poor-performing schools face financial penalties meant to push better student outcomes.
What does it cost, and who pays?
Colleges with low repayment rates would face financial penalties tied to borrower repayment failures, and schools that lose an aid appeal after continuing to receive loan funds during the appeal must repay the government.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedMar 17, 2026
- Senate committeeYou are here · Mar 17, 2026
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.