Combating Excessive Student Debt Act of 2022

Bill: 117-hr-7895
Sponsor: full_name: Rep. Rice, Tom [R-SC-7]
Introduced: 2022-05-27
Policy area: Education
Latest action: action_date: 2022-05-27
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2022-05-27
action_desc: Introduced in House
text: <p><strong>Combating Excessive Student Debt Act of 2022</strong></p> <p>This bill generally prohibits new Federal Direct PLUS Loans from being made to student loan borrowers on or after July 1, 2023. Additionally, the bill limits the percentage of institutional revenue that may be derived from these loans.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7895 IN THE HOUSE OF REPRESENTATIVES May 27, 2022 Mr. Rice of South Carolina introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to terminate the authority to make Federal direct PLUS loans, and for other purposes.

1. Short title This Act may be cited as the Combating Excessive Student Debt Act of 2022 . 2. Termination of authority to make Federal Direct PLUS Loans Section 455(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended by adding at the end the following: (4) Termination of authority to make Federal Direct PLUS Loans (A) In general Subject to subparagraph (B) and notwithstanding any provision of this part or part B, no new Federal Direct PLUS Loans may be made under this part on or after July 1, 2023. (B) Loans made before July 1, 2023 A borrower who has not received a Federal Direct PLUS Loan before the date of enactment of the Combating Excessive Student Debt Act of 2022 and for whom a Federal Direct PLUS Loan is first disbursed for any period of instruction beginning on or after such date, but not later than July 1, 2023, may be eligible to receive Federal Direct PLUS Loans until the completion of the course of study for which such loan was first disbursed or June 30, 2027, whichever occurs first. . 3. Limitation on institutional revenue from Federal Direct PLUS Loans Section 487(a) of the Higher Education Act of 1965 is amended by adding at the following: (30) The institution will not derive institutional revenue from Federal Direct PLUS Loans in an amount that exceeds— (A) for academic year 2023–2024, the average such institutional revenue that the institution received for the 5 most recent academic years preceding academic year 2023–2024; (B) for academic year 2024–2025, 75 percent of the average institutional revenue described in subparagraph (A); (C) for academic year 2025–2026, 50 percent of the average institutional revenue described in such subparagraph; and (D) for academic year 2026–2027, 25 percent of the average institutional revenue described in such subparagraph. .