PROTECT Students Act of 2025
PROTECT Students Act of 2025
Plain Language Summary
# PROTECT Students Act of 2025 - Summary **What It Does:** The PROTECT Students Act aims to crack down on predatory financial practices in higher education. The bill would give the Department of Education legal authority to enforce rules about "gainful employment" (ensuring education programs actually lead to decent-paying jobs), allow students to get loan forgiveness if their school closes, and let borrowers dispute loans they took out based on false promises. It would also ban colleges from forcing students to sign away their right to sue the school or to hide complaints. **Who It Affects:** This primarily affects college students and student loan borrowers, especially those attending for-profit colleges or career training programs.
It also impacts colleges and universities that receive federal student aid funding, which most institutions do. **Current Status:** The bill was introduced by Rep. Mark Takano (D-CA) and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives. Bills at this stage often don't advance to a vote, so its likelihood of passing is uncertain.
CRS Official Summary
Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2025 or the PROTECT Students Act of 2025This bill sets forth provisions to address financial predatory practices in higher education, including by establishing additional protections for students and student loan borrowers.Specifically, the bill provides statutory authority for Department of Education (ED) regulations related to gainful employment, borrower defense to repayment, and closed school discharges. For example, ED's 2023 gainful employment regulations specify that ED considers a career education program to be preparing students for gainful employment if it meets specified debt-to-earnings or earnings premium measures.Additionally, the bill prohibits institutions of higher education (IHEs) that participate in federal student aid programs from taking specified actions, such as (1) restricting students' ability to pursue claims against IHEs in court, and (2) withholding official transcripts because of a balance owed by the student.The bill requires IHEs to spend at least 30% of their tuition and fee revenue on instruction.The bill also includes additional oversight measures, such asproviding statutory authority for an enforcement unit within ED's Office of Federal Student Aid to assess complaints against IHEs, third-party servicers, and student loan servicers; establishing the For-Profit Education Oversight Coordination Committee within the executive branch; andrequiring ED to establish and operate a system that tracks complaints or reports of suspicious activity by IHEs, third-party servicers, and student loan servicers.The bill makes funding available to ED for the administrative costs of operating student aid programs.
Latest Action
Referred to the Committee on Education and Workforce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.