Restoring College Access and Affordability Act

Bill Number

S. 4269

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Education

Status

Introduced

Latest Action

2026-03-26: Read twice and referred to the Committee on Finance.

Last Updated

2026-06-13T11:03:28Z

AI-Generated Summary

Restoring College Access and Affordability Act (S. 4269)

Purpose

This bill aims to repeal specific student loan and financial aid restrictions enacted in a prior reconciliation law (Public Law 119-21), restore previous rules for federal student aid programs, narrow eligibility restrictions based on program earnings outcomes, and adjust the excise tax on large college endowments to improve access and affordability of higher education.

Key Provisions

• Repeal of Loan Limits (Sec. 2): Eliminates new borrowing limits on federal student loans.
• Repeal of Loan Repayment Changes (Sec. 3): Removes alterations to loan repayment plans, deferment (pausing payments during hardship), forbearance (temporary payment suspension), and Public Service Loan Forgiveness (PSLF) (program forgiving loans after 10 years of public service work).
• Repeal of Pell Grant Changes (Sec. 4): Restores prior rules for Pell Grant eligibility (need-based grants for low-income undergraduates) and exclusions for other grant aid.
• Narrowing Ineligibility for Low Earnings (Sec. 5): Amends the Higher Education Act of 1965 to limit federal aid ineligibility (due to graduates' low earnings) to "covered educational programs," defined as:
• Training for jobs (e.g., certificates/credentials).
• Associate's degrees.
• Bachelor's degrees.
• Graduate/professional degrees or certificates.

(Excludes other programs from this penalty.)

• Regulatory Relief (Sec. 6): Repeals delays on rules for borrower defense to repayment (refunds for loans from misleading schools) and closed school discharges (loan forgiveness if a school closes).
• Endowment Tax Modification (Sec. 7): Sets a flat 1.4% excise tax on net investment income for private colleges/universities with endowments over $500,000 per student (effective 2026), replacing a tiered rate structure.

Significant Changes to Existing Law

• Reverses Public Law 119-21: Treats repealed sections as never enacted, reverting to pre-2025 rules on loans, repayment, PSLF, Pell Grants, and regulatory delays.
• Limits Earnings-Based Penalties: Restricts low-earnings ineligibility to specific degree/certificate programs, protecting other programs (e.g., non-degree vocational training) from aid cuts.
• Simplifies Endowment Tax: Replaces variable rates (1.4%-1.4% based on endowment size/student count) with a fixed 1.4% rate; removes related subsections for administrative simplification.

Potential Impacts

• Government Agencies: Department of Education regains flexibility in aid administration; IRS simplifies endowment tax collection.
• Citizens/Students: Easier access to loans, repayment options, PSLF, and Pell Grants; fewer programs lose aid due to earnings metrics, potentially benefiting low-income and vocational students.
• Institutions: Colleges face flat endowment tax (revenue neutral or slight increase for largest schools); protected from broader low-earnings penalties.
• No direct international relations impact.

Main Stakeholders Affected

• Students/Borrowers: Gain restored aid options and protections.
• Higher Education Institutions: Especially community colleges, vocational programs, and large-endowed privates.
• Federal Government: Department of Education (aid programs), IRS (tax enforcement).
• Taxpayers: Potential shift in federal spending on student aid.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on congressional repeal authority; restores prior Higher Education Act and tax code frameworks without new rulemaking mandates.
• Constitutional: No apparent challenges; aligns with Congress's spending and tax powers.
• Political: Targets reversals of recent (hypothetical 119th Congress) reforms, favoring expanded aid access; may spark debate on aid costs vs. accountability for low-value programs.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Blumenthal, Richard [D-CT]

Cosponsors (7)

Sen. Luján, Ben Ray [D-NM], Sen. Booker, Cory A. [D-NJ], Sen. Merkley, Jeff [D-OR], Sen. Alsobrooks, Angela D. [D-MD], Sen. Kaine, Tim [D-VA], Sen. King, Angus S., Jr. [I-ME], Sen. Sanders, Bernard [I-VT]

Recent Actions

• 2026-03-26: Read twice and referred to the Committee on Finance.
• 2026-03-26: Introduced in Senate

Bill Versions

• Restoring College Access and Affordability Act — issued 2026-03-26 — PDF (9 pages)