Student Loan Reform Act

This bill allows colleges to cosign student loans starting July 2024, making institutions responsible for repaying the loan if a student defaults after 90 days without rehabilitation. Participating colleges receive reduced interest rates on these loans, calculated based on the lower risk they assume. It also adjusts default rate calculations, raising the threshold from 30% to 40% for schools joining the program (compared to 30% for non-participating schools). The Department of Education will publish an annual list of participating institutions, and colleges must elect to join the program each academic year.