Republicans' College Accountability Plan

SOURCE www.npr.org
Republicans' One Big Beautiful Bill Act proposes a risk-sharing plan to penalize colleges with high student loan debt and poor earnings outcomes, while rewarding schools that provide value for low-income students. The plan aims to save the government $6 billion over the next decade, but experts have raised concerns about the complexities and potential flaws in the proposal.

Key Points

  • Risk-sharing plan penalizes schools with high student debt and poor earnings outcomes
  • Proposal includes PROMISE Grants to reward schools providing value for low-income students
  • Experts point out flaws in the plan, including data challenges and potential unintended consequences

Pros

  • Encourages colleges to prioritize student outcomes and value for money
  • Aims to save the government over $6 billion in the next decade
  • Provides incentives for schools to support low-income students

Cons

  • Complex calculations may be based on imaginary or incomplete data
  • Omission of defaulted loans from penalties could benefit institutions with high default rates
  • Concerns about potential negative impacts on schools and students