Washington, D.C. — The 119th Congress is gearing up to pass a partisan reconciliation bill in order to enact a radical agenda that would, among other draconian impacts, have profoundly negative effects on students, colleges, and taxpayers. The goal of this legislation is to, yet again, enrich the wealthiest Americans in the form of more tax cuts paid for by cutting programs that benefit the middle class.
New analysis from the Center for American Progress identifies proposals from the College Cost Reduction Act that could raise costs, roll back protections for students, and narrow pathways to higher education opportunities for underrepresented students if they are included in a budget reconciliation deal.
Harmful proposals identified in the analysis include:
- Reopening the 90/10 loophole, which would incentivize predatory practices targeting student veterans
- A new income-driven repayment plan that would raise costs for student loan borrowers and trap some borrowers in lifelong debt payments
- New borrowing limits that would force underserved borrowers into an underregulated private loan market
- New risk-sharing policies that could disincentivize institutions from enrolling low-income students
- Eliminating student consumer protections, which could put students at greater risk of attending low-quality higher education programs;
- New policies that could increase barriers to careers in healthcare and other public service fields
- Repealing central pieces of the student loan safety net, which would leave borrowers who attended schools that closed or misled them without options for debt relief
“This legislation would make student loan bills even more unaffordable and force the most vulnerable borrowers into a private student loan market that does not offer the same protections and flexibility as federal loans,” said Sara Partridge, associate director for Higher Education Policy at CAP and co-author of the issue brief. “It creates new risks for students, colleges, and taxpayers across the board.”
“The American for-profit college industry has a long and colorful history of using predatory practices to take advantage of students, which can leave students worse off than before they enrolled,” said Madison Weiss, senior policy analyst for Higher Education Policy at CAP and co-author of the issue brief. “This proposed legislation seeks to remove safeguards that protect the best interests of our students.”
Read the issue brief: “Proposed Legislation Threatens To Dismantle Consumer Protections for Students and Raise Costs for Borrowers” by Madison Weiss and Sara Partridge
For more information or to speak with an expert, contact Mishka Espey at [email protected].