ADEA Washington Update

Higher Ed Reauthorization Bill Moves Forward in the House

(Legislation, House, Education, Financial Aid) Permanent link   All Posts

StrengthenHEAAt the end of December, the House introduced a new Higher Education Act intended to “transform the college marketplace by promoting innovation, access, and completion; simplifying and improving student aid; empowering students and families to make informed decisions; and ensuring strong accountability and a limited federal role.”

H.R. 4508, the Promoting Real Opportunity, Success, and Prosperity through Education Reform (PROSPER) Act, proposes major changes to the federal student financial aid landscape. PROSPER would:

  • End subsidized student loan interest for certain Stafford loans.
  • Eliminate the Public Service Loan Forgiveness program.
  • Offer only one type of grant (Pell) and one type of loan (Federal ONE) for all students.
  • Replace 10 different repayment plans with two repayment options: A 10-year standard plan and a single income-based repayment plan.

The process for disbursing loans would be altered as well. Loans and grants would be doled out on a monthly basis rather than in a lump sum at the start of the school year.

Current program benefits will remain in place for those who have subsidized student loans or who are already enrolled in income-driven repayment or public service loan forgiveness programs. New borrowers would have fewer financing and repayment options if Congress passes the proposed law. 

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