Student Loan Reform Act

This bill would require the Secretary of Education to run a program, starting July 1, 2026, in which colleges can choose to cosign all new federal Direct Loans made to their students for an academic year. If a borrower defaults and the loan is not rehabilitated within 90 days, the cosigning college would have to repay the remaining balance over 10 years, while the borrower would still be treated as in default. Loans cosigned by a participating college would carry an interest rate lower than the standard rate, set by the Secretary based on reduced risk. The Department of Education would publish a yearly list of participating colleges. The bill would also set the cohort default rate threshold that can cost a college its federal student aid eligibility at 40 percent for participating colleges and 30 percent for others.

Full text and official record on Congress.gov

Sponsors

• Scott Perry Republican sponsor
• 0 cosponsors