H.R.1739 - Higher Education Reform and Opportunity Act (119th Congress)
Summary
H.R.1739, the Higher Education Reform and Opportunity Act, aims to amend the Higher Education Act of 1965. The bill introduces fiscal accountability measures, mandates the publication of student success information by higher education institutions, and establishes school accountability for student loans. It also introduces a new category of Federal Direct simplification loans and phases out existing loan forgiveness programs.
Expected Effects
The Act will likely lead to significant changes in how federal student loans are administered and repaid. Institutions may face greater pressure to improve student outcomes and manage loan default rates. States may also have more flexibility in accrediting postsecondary education programs.
Potential Benefits
- Simplification of federal student loans through the introduction of Federal Direct simplification loans.
- Increased transparency in higher education through mandatory publication of institutional performance data.
- Potential for states to innovate in accreditation through alternative accreditation systems.
- Greater institutional accountability for student loan default rates.
- Flexibility for institutions to counsel students on financial aid and potentially award less than the maximum eligible amount.
Most Benefited Areas:
Potential Disadvantages
- Phasing out of existing loan forgiveness programs may negatively impact borrowers who rely on these programs.
- New loan terms, such as fixed repayment periods, may not suit all borrowers' financial situations.
- Default rate fines could financially strain institutions, potentially leading to increased tuition costs.
- The shift to state-level accreditation could lead to inconsistencies in educational standards across states.
- Potential for institutions to limit loan amounts, which could restrict access to higher education for some students.
Constitutional Alignment
The bill's focus on education falls under the general welfare clause of the Constitution, which allows Congress to provide for the well-being of the nation. The Tenth Amendment reserves powers not delegated to the federal government to the states, which could be relevant to the accreditation reforms allowing for state-level accreditation systems. The bill does not appear to infringe upon any specific individual rights or liberties guaranteed by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).