Combating Predatory Lending in Higher Education Act of 2021

Bill: 117-hr-5126
Sponsor: full_name: Rep. Van Duyne, Beth [R-TX-24]
Introduced: 2021-08-27
Policy area: Education
Latest action: action_date: 2021-08-27
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2021-08-27
action_desc: Introduced in House
text: <p><strong>Combating Predatory Lending in Higher Education Act of 2021</strong></p> <p>This bill includes Direct PLUS Loans that are made to graduate students and parents on behalf of dependent students in an institution of higher education's (IHE's) cohort default rate. This rate is the percentage of an IHE's borrowers who enter repayment and default on certain student loans.</p> <p>Further, the Department of Education must include this information in its annual report on cohort default rates.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 5126 IN THE HOUSE OF REPRESENTATIVES August 27, 2021 Ms. Van Duyne introduced the following bill; which was referred to the Committee on Education and Labor A BILL To require that certain loans made to parents on behalf of a dependent student and to graduate students are included in the definition of cohort default rate under the Higher Education Act of 1965, to require the Secretary of Education to report default rates for such loans, and for other purposes.

1. Short title This Act may be cited as the Combating Predatory Lending in Higher Education Act of 2021 . 2. Addition of certain loans to parents and graduate student to the calculation and reporting of cohort default rates (a) Definition of cohort default rate Section 435(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1085(m) ) is amended— (1) in paragraph (1)— (A) in subparagraph (A)— (i) by striking section 428, 428A, or 428H and inserting this part or part D ; and (ii) by inserting or a Federal Direct Consolidation Loan after section 428C ; and (B) in subparagraph (C), by inserting or a Federal Direct Consolidation Loan after section 428C ; and (2) in paragraph (2), by adding at the end the following new subparagraph: (E) For the purposes of this subsection, the term students , when used with respect to a determination or calculation of the number of students who enter repayment or default on a loan received for attendance at an institution, shall include parents with a Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student for attendance at the institution. . (b) Collection and reporting of cohort default rates Section 435(m)(4)(A) of such Act of 1965 ( 20 U.S.C. 1085(m)(4)(A) ) is amended— (1) by striking section 428, 428A, or 428H and inserting this part or part D ; and (2) by inserting or a Federal Direct Consolidation Loan after section 428C . (c) Effective date The amendments made by this section shall be effective for the first fiscal year beginning after the date of enactment of this Act, and each subsequent fiscal year.