Higher Education Reform and Opportunity Act

The Higher Education Reform and Opportunity Act (S 801) ends most federal student loans after September 30, 2028, replacing them with a simplified loan program featuring fixed interest rates, capped borrowing limits (e.g., $30,000 total for dependent undergraduate students), and standardized repayment terms (15 years for undergrads, 25 years for graduate students). The bill eliminates most student loan forgiveness options for loans issued on or after July 1, 2025, while requiring colleges to publish detailed transparency data about student outcomes, costs, and financial aid on their websites. It also establishes a penalty for institutions with high student loan default rates and allows states to develop their own accreditation systems for higher education programs, affecting students, colleges, and the broader higher education landscape.