HR 713In committeeEducationhouse

Preventing Financial Exploitation in Higher Education Act

Introduced Jan 23, 2025 by Rep. Beth Van Duyne

IntroducedCommitteeFloorCongressLaw

It's waiting on a committee vote to reach the full chamber. Most bills never leave this stage.

Latest action · Jan 23, 2025

Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Read it on Congress.gov

What it does

This bill establishes financial penalties for institutions of higher education (IHEs) with endowments of $2.5 billion or more that have specified percentages of current and former students who default, are delinquent, or underpay on their federal student loans. The bill also imposes an increased excise tax on net investment income of certain IHEs that increase tuition beyond certain levels.

Specifically, the bill requires such an IHE to pay penalties to the Department of Education based on the IHE's

cohort default rate (the percentage of how many borrowers default on their federal student loans in a fiscal year),

cohort delinquency rate (the percentage of borrowers who are between 31- and 360-days past-due on their federal student loans), and

Read the full summary on Congress.gov

Summary by the Congressional Research Service.

Roll-call votes

No floor votes yet — it hasn't reached the floor of either chamber.