Preventing Financial Exploitation in Higher Education Act

This bill targets universities with endowments of $2.5 billion or more, imposing penalties based on student loan repayment rates. Institutions with high rates of defaulted, delinquent, or underpaid student loans (measured as the percentage of borrowers missing payments for 31-360 days) must pay penalties equal to 16-30% of outstanding loan balances, with rates phased in through 2030. It also adds a 25% tax on the net investment income of these institutions if their average tuition exceeds an inflation-adjusted base amount. The penalties and tax apply only to large endowment institutions that fail to meet specific repayment thresholds or raise tuition beyond inflation.