Bills · HR 713
IN COMMITTEE· 119TH CONGRESS
House BillHR 713Civil actions and liabilityStudent aid and college costs
Preventing Financial Exploitation in Higher Education Act
INTRO JAN 23· LAST ACTION JAN 23
READING
12MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it directly addresses the growing issue of student loan debt and repayment challenges in the United States. If this bill becomes law, colleges would have a direct financial incentive to ensure their graduates are well-prepared for the workforce and can successfully manage their student loan obligations. This could lead to a shift in how colleges evaluate their programs and the support they offer students.
Currently, the financial burden of defaulted federal student loans largely falls on taxpayers. This bill aims to transfer some of that risk to the institutions themselves. Without this law, colleges would continue to operate under the current system where they generally do not face direct financial repercussions for high rates of student loan defaults or repayment issues, potentially reducing the incentive to prioritize student financial success after graduation.
KEY PROVISIONS
4AI-extractedPROVISION 01
Imposes financial penalties on colleges whose students have high rates of defaulting, becoming delinquent, or underpaying federal student loans.
This provision introduces direct financial accountability for colleges regarding their students' loan repayment outcomes.
PROVISION 02
Establishes specific trigger rates for default, delinquency, and underpayment, which, if exceeded, will result in a penalty for the institution.
It defines the specific performance metrics that colleges must meet to avoid penalties, providing clear targets.
PROVISION 03
Calculates penalties as a percentage of the total outstanding principal and interest for the loans included in the failing rate's calculation.
This determines the financial magnitude of the penalty, directly linking it to the volume of problematic loans.
PROVISION 04
Phases in stricter penalty thresholds and slightly lower penalty percentages over fiscal years 2025 through 2029.
This provides colleges with a multi-year adjustment period while progressively increasing accountability.
SPONSORSHIP
1 + 0
R· Texas
YRS IN OFFICE
5
BILLS LED
48
ACTION TIMELINE
2 EVENTSJAN 23
Introduced in House
JAN 23
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.
BILL INFO
TypeHouse Bill
NumberHR 713
Congress119th
StatusIn Committee
IntroducedJan 23, 2025
Last actionJan 23, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 23, 2025
House BillHR 713Civil actions and liabilityStudent aid and college costs
Preventing Financial Exploitation in Higher Education Act
INTRODUCED JAN 23, 2025· LAST ACTION JAN 23, 2025
PASSAGE CHANCES
—%
READING
12 min
COSPONSORS
0
COMPLEXITY
Moderate
