Responsible Borrowing Act of 2023

The Responsible Borrowing Act of 2023 allows colleges to set lower annual or lifetime borrowing limits for students in specific programs if debt levels appear excessive relative to graduate earnings. Institutions may use data from the Bureau of Labor Statistics (average regional starting salaries) or the College Scorecard (median earnings for program graduates) to determine these limits, or adjust based on enrollment status, credential type, or program year. Students whose loans are capped can request an increase, but institutions retain discretion. This applies only to new students starting after June 2024 and prohibits limits based on protected characteristics like race or gender.