Student Protection and Success Act
- Bill Number
- H.R. 8009
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2026-03-19: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2026-06-29T21:02:23Z
AI-Generated Summary
Purpose The Student Protection and Success Act amends the Higher Education Act of 1965 to hold colleges accountable for student loan repayment outcomes. It introduces penalties for institutions with low repayment rates, requires financial risk-sharing payments from colleges, and creates a grant program to reward schools that serve low- and moderate-income students effectively.
Key Provisions
- Institutional Ineligibility: Starting in fiscal year 2028, any college with a cohort repayment rate of 15 percent or lower loses eligibility to participate in federal Direct Loan, Pell Grant, FFEL, and Perkins Loan programs for that year and the following two years.
- Cohort Repayment Rate Definition: This rate measures the percentage of borrowers who reduce their loan principal by at least one dollar within two years of entering repayment (with specific exceptions for military service, graduate study, disability programs, Peace Corps, and certain deferments). Calculations use data from 30 or more borrowers or a three-year average if fewer than 30 borrowers are involved.
- Appeals Process: Institutions may appeal ineligibility within 30 days; the Secretary may allow continued participation during the appeal but requires repayment of costs if the appeal fails.
- Risk-Sharing Payments: Beginning in fiscal year 2028, participating institutions must pay the Secretary an amount equal to 2 percent of their cohort nonrepayment loan balance (adjusted for national unemployment rates), capped at 2.5 percent of certain revenues.
- College Opportunity Bonus Program: Grants are awarded to institutions with repayment rates above 25 percent. Funds support need-based aid, academic support, and accelerated learning for low- and moderate-income students, using a formula that considers Pell Grant recipients, their repayment rates, and student service spending.
- Reporting and Data Requirements: The Secretary must issue a report on best practices for improving repayment rates within six months and expand data collection on student service expenditures versus marketing and recruitment costs.
- Advance Notifications: Institutions receive warnings about potential ineligibility or payment amounts before fiscal year 2028.
Significant Changes to Existing Law This bill adds new accountability metrics based on repayment rates rather than solely default rates. It creates institutional risk-sharing obligations and a performance-based grant program funded directly by those payments. It also extends ineligibility consequences across multiple federal student aid programs and updates data reporting rules under the Education Sciences Reform Act.
Potential Impacts
- On Government Agencies: The Department of Education gains new administrative duties for calculating rates, processing appeals, collecting payments, and distributing grants.
- On Citizens/Students: Low-income and moderate-income students may benefit from increased support at qualifying institutions, while students at low-performing schools could face reduced access to federal aid.
- On Institutions: Colleges face financial penalties or loss of federal funding eligibility, creating incentives to improve student outcomes and repayment.
- On International Relations: No direct effects identified.
Main Stakeholders Affected
- Institutions of higher education (particularly those serving many Pell Grant recipients).
- Current and prospective students, especially low- and moderate-income borrowers.
- The Department of Education and Congress.
- Taxpayers, through changes in federal loan program costs and accountability.
Notable Legal, Constitutional, or Political Implications The legislation expands federal oversight of higher education institutions through new performance metrics tied to aid eligibility. It raises questions about due process in appeals and the fairness of repayment rate calculations for institutions with small borrower cohorts. Politically, it emphasizes institutional responsibility for student debt outcomes while directing resources toward access and success for underserved students. No major constitutional issues are apparent in the text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Perez, Marie Gluesenkamp [D-WA-3]
Recent Actions
- 2026-03-19: Referred to the House Committee on Education and Workforce.
- 2026-03-19: Introduced in House
- 2026-03-19: Introduced in House
Bill Versions
- Student Protection and Success Act — issued 2026-03-19 — PDF (21 pages)