Student Protection and Success Act
Sponsored By: Senator Jeanne Shaheen
Introduced
Summary
Tie federal student aid to college loan repayment performance. This bill would make institutions' access to federal Pell Grants and federal student loan programs depend on how well former students repay loans, and it creates new institutional fees and bonus grants tied to repayment outcomes.
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- Students and families: Students at institutions with cohort repayment rates of 15% or less risk losing access to Pell Grants and federal loans for the year and the following two fiscal years. Institutions may appeal within 30 days but unsuccessful appeals that allowed continued participation trigger reimbursement of loans plus interest and related payments.
- Colleges and universities: Institutions would remit a risk-sharing payment generally equal to 2% of cohort nonrepayment loan balances, subject to a cap tied to 2.5% of annual revenues. The payment is reduced when unemployment is higher and the law phases these rules in around fiscal year 2028.
- Low-income students and strong performers: Schools with cohort repayment rates above 25% and a record of improving affordability can get College Opportunity Bonus grants to expand need-based aid and student supports. Grants are funded only from the risk-sharing payments and cannot exceed 2.5% of an institution's annual revenues.
*This bill does not include a scored federal budget estimate in the provided sources, so no fiscal projection is given.*
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Grants for colleges that improve repayment
If enacted, the bill would create a College Opportunity Bonus program starting in fiscal year 2028. Colleges with cohort repayment rates greater than 25% and a record of improving affordability and access for low- and moderate-income students would be eligible. Grants could fund extra need-based aid for Pell students, academic and student support services, and accelerated learning. The grant formula would equally weight Pell student share, the Pell cohort repayment rate, and student service spending share. Each grant could not exceed 2.5% of the institution's revenues and investment returns and would be paid from the risk-sharing payments collected from institutions.
Colleges face new repayment test
If enacted, the bill would create a new "cohort repayment rate" and use it to block federal aid for very low-performing colleges. Starting in fiscal year 2028, a college with a cohort repayment rate of 15% or less would be ineligible for Title IV programs for that year and the next two years. The cohort rate counts borrowers who are not in default and who reduce at least $1 of principal within two years; smaller schools use a three-year pooling rule. Certain approved deferments, long forbearances, military or qualifying public service, and qualifying discharges would be excluded. Colleges would have 30 days to appeal a low-rate finding; the Secretary could allow continued Title IV participation during the appeal, but if the appeal fails the college must repay loans and related payments made while the appeal was pending.
Colleges pay new risk fee
If enacted, the bill would require colleges to make annual risk-sharing payments tied to nonrepayment loan balances beginning in fiscal year 2028. The payment would generally equal 2% of a base amount tied to the cohort nonrepayment balance, reduced by the 3-year national unemployment average. That payment could not exceed 2.5% of the college's annual revenues and investment returns (excluding auxiliary and hospital revenues). The Secretary must give projected notices of what payments would be before full enforcement, and colleges must accept the payment obligation in participation agreements.
Reporting and student support rules
If enacted, the bill would require the Secretary of Education to report to Congress within six months on best practices to improve loan repayment, with a focus on colleges serving many low-income students. It would also change IPEDS reporting so more student-support activities are counted as "student service expenditures," while excluding marketing, recruitment, and intercollegiate athletics and requiring a separate line for recruitment and marketing. These changes would aim to improve transparency and guide colleges toward better student supports.
Sponsors & CoSponsors
Sponsor
Jeanne Shaheen
NH • D
Cosponsors
Todd Young
IN • R
Sponsored 3/17/2026
Roll Call Votes
No roll call votes available for this bill.
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