Student Protection and Success Act

This bill, titled the Student Protection and Success Act, requires colleges and universities to share financial risk with the federal government by making payments based on how many student loans remain unpaid. Starting in fiscal year 2028, institutions with a cohort repayment rate of 15 percent or lower would lose eligibility for federal student loan programs for up to three years, while colleges with rates above 25 percent could receive bonus grants to support low-income students. The bill also establishes a new payment system where schools must contribute a percentage of the outstanding loan balances for borrowers who have not made progress on paying down their debt, with exceptions for students in deferment due to military service, graduate school, or other qualifying circumstances. These measures aim to hold institutions accountable for student loan outcomes while providing incentives for improving access and success for economically disadvantaged students.