Education (Student Financial Aid)

The TEACH Improvement Act of 2026 amends the federal TEACH Grant program to better support teacher preparation by establishing stricter eligibility criteria for institutions and clarifying rules for post-baccalaureate students. The bill defines "eligible institutions" as those providing high-quality teacher training, financial stability, and ongoing support services, while also creating a specific pathway for individuals with bachelor's degrees to earn teaching credentials without pursuing a graduate degree. Key provisions include setting grant amounts of $4,000 to $5,000 per year, requiring recipients to serve as full-time teachers in high-need fields for four years within eight years, and introducing a new loan conversion process if service obligations are not met. Additionally, the act imposes penalties on institutions where more than 50% of their graduates fail to complete their service obligations, restricting their ability to offer grants until they demonstrate improved outcomes. The legislation also mandates annual reporting on grant conversions and servicer performance to ensure accountability and transparency in the program's administration.

The Gateway to Careers Act of 2026 creates a new grant program to help states fund partnerships between workforce agencies, schools, and employers designed to guide individuals through specific career paths. These partnerships will receive federal funding to develop programs that connect education and training with in-demand jobs, while also providing essential support services like childcare, transportation, and mental health care to help participants complete their training. The bill prioritizes partnerships involving community colleges and those serving people facing barriers to employment, requiring applicants to use evidence-based strategies to improve student outcomes. To ensure accountability, the program mandates regular reporting on participant progress, job placement rates, and earnings, with a portion of funds reserved for independent evaluations of the initiative's effectiveness.

The Improving Financial Aid Offers for Students Act requires colleges and universities receiving federal funds to provide clearer, more detailed financial aid documents to prospective and enrolled students. To achieve this, the bill mandates that these offers include specific, plain-language information on total costs, grants, scholarships, loans, and the estimated amount a family must pay, while also offering a standardized model form developed through public testing. Institutions must use consistent terminology and clearly separate different types of aid to help students better understand their financial obligations and available resources. The law also requires the Department of Education to publish these forms and conduct studies to ensure the documents effectively assist students in making informed decisions.

The Time for Completion Act requires colleges to publicly report how many students finish their degree programs within specific timeframes, such as the normal duration, 150 percent, 200 percent, and 300 percent of the expected length. This reporting applies to both short and long programs and must be broken down by student type, including whether they are first-time or returning students and whether they attend full-time or part-time. The law also updates federal financial aid regulations to ensure these completion rates are included in institutional data used for determining eligibility and funding. By mandating consistent and visible display of these statistics, the bill aims to provide prospective students and families with clearer information about graduation timelines at higher education institutions.

Domenic and Ed's Law allows parents who have taken out federal student loans to repay those loans if their child becomes permanently and totally disabled. This change applies to all outstanding parent loans, regardless of when the loan was taken out or when the disability began. The law requires that the disability be medically determinable and expected to last for at least 60 months or result in death.

The Student Loan Reform Act requires colleges to act as guarantors for student loans starting in July 2026, meaning schools would become directly responsible for repaying the debt if a student fails to pay. Under this program, institutions that agree to cosign loans would see their default rate thresholds raised from 30 percent to 40 percent, providing them with more flexibility regarding student repayment performance. If a borrower defaults and the loan remains unpaid for 90 days, the school must begin a ten-year repayment plan for the outstanding balance, though they can stop this obligation if the debt is rehabilitated or fully paid. Additionally, loans with institutional cosigners would receive a lower interest rate determined by the Secretary of Education based on the reduced risk to the lender.

This bill allows Congress to disapprove a recent rule from the Bureau of Consumer Financial Protection that would have removed an earlier guideline on student loan billing practices. If passed, the resolution would cancel the new rule, effectively keeping the original 2023 guidance in place that addresses unfair billing and collection actions after student loans are discharged in bankruptcy. The measure directly impacts borrowers, loan servicers, and the federal agency responsible for consumer financial protection by preventing the withdrawal of specific regulations. It is a procedural action that stops a regulatory change rather than creating new laws or policies.

The Full-Service Community School Expansion Act of 2026 authorizes billions of dollars in federal funding to expand a program that helps public schools in high-poverty areas provide integrated student supports, extended learning time, and active community engagement. The bill establishes specific roles for coordinators and directors to manage these efforts and requires schools to form leadership teams that include students, parents, educators, and community members. Funding is distributed through competitive grants to local educational agencies, states, and tribal organizations, with priority given to schools serving low-income students and those in rural or tribal areas. The legislation also mandates regular reporting on student outcomes and school climate to ensure accountability and continuous improvement.

The Student Aid Fraud Oversight and Accountability Act of 2026 requires colleges to report any student whose financial aid application raised reasonable suspicion of identity fraud after October 1, 2026. These reports will be used to help the Department of Education prioritize program reviews and audits for institutions with higher numbers of flagged cases. The bill allows schools to avoid reporting a student if they can prove they verified the student's identity through in-person or live video checks before disbursing funds. Importantly, identifying a school in this way does not automatically mean the institution has failed to meet legal requirements.

Savings Opportunity and Affordable Repayment Act This bill creates a new income-driven repayment plan for student loans called the Savings Opportunity and Affordable Repayment (SOAR) plan. The SOAR plan has similar provisions to, but further expands on, the Department of Education's (ED's) final rule published on July 10, 2023, that created the Saving on a Valuable Education (SAVE) plan. The SAVE plan was blocked by federal courts. The bill directs ED to carry out a SOAR plan program that complies with specified requirements. The bill allows all federal student loan types to be eligible for repayment under the SOAR plan, including Parent PLUS Loans and Federal Family Education Loans. Under the SOAR plan, a federal student loan borrower whose income is at or below 250% of the federal poverty level (FPL) has $0 monthly payments. A borrower whose income is over 250% of the FPL pays 5% of their discretionary income on loans obtained for undergraduate study and 10% of their discretionary income for all other outstanding loans (e.g., loans obtained for graduate study). Additionally, under the SOAR plan, holders of eligible federal student loans (e.g., ED or private lenders) must apply 50% of the borrower's monthly payment toward outstanding principal. The other 50% must be applied in the following order: (1) accrued charges and collection costs on the loan, (2) outstanding interest, and (3) outstanding principal. ED must forgive any loan balance that remains outstanding after a specified maximum repayment period (e.g., 10 years or 15 years).