Student Protection and Success Act

This bill would require colleges to demonstrate that at least 15% of their student loan borrowers successfully reduce their loan principal within two years of entering repayment, or risk losing eligibility for federal student loan programs starting in fiscal year 2028. It also creates a new bonus grant program for institutions with repayment rates above 25% and requires colleges to pay fees based on the amount of loans their students fail to repay. The legislation defines repayment success as borrowers who are not in default and have made at least a one-dollar reduction in their principal balance, while excluding students in deferment for military service, graduate school, or public service.