Combating Excessive Student Debt Act of 2022

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7895 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 7895

To amend the Higher Education Act of 1965 to terminate the authority to 
        make Federal direct PLUS loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 27, 2022

  Mr. Rice of South Carolina introduced the following bill; which was 
            referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act of 1965 to terminate the authority to 
        make Federal direct PLUS loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combating Excessive Student Debt Act 
of 2022''.

SEC. 2. TERMINATION OF AUTHORITY TO MAKE FEDERAL DIRECT PLUS LOANS.

    Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087e) is amended by adding at the end the following:
            ``(4) Termination of authority to make federal direct plus 
        loans.--
                    ``(A) In general.--Subject to subparagraph (B) and 
                notwithstanding any provision of this part or part B, 
                no new Federal Direct PLUS Loans may be made under this 
                part on or after July 1, 2023.
                    ``(B) Loans made before july 1, 2023.--A borrower 
                who has not received a Federal Direct PLUS Loan before 
                the date of enactment of the Combating Excessive 
                Student Debt Act of 2022 and for whom a Federal Direct 
                PLUS Loan is first disbursed for any period of 
                instruction beginning on or after such date, but not 
                later than July 1, 2023, may be eligible to receive 
                Federal Direct PLUS Loans until the completion of the 
                course of study for which such loan was first disbursed 
                or June 30, 2027, whichever occurs first.''.

SEC. 3. LIMITATION ON INSTITUTIONAL REVENUE FROM FEDERAL DIRECT PLUS 
              LOANS.

    Section 487(a) of the Higher Education Act of 1965 is amended by 
adding at the following:
            ``(30) The institution will not derive institutional 
        revenue from Federal Direct PLUS Loans in an amount that 
        exceeds--
                    ``(A) for academic year 2023-2024, the average such 
                institutional revenue that the institution received for 
                the 5 most recent academic years preceding academic 
                year 2023-2024;
                    ``(B) for academic year 2024-2025, 75 percent of 
                the average institutional revenue described in 
                subparagraph (A);
                    ``(C) for academic year 2025-2026, 50 percent of 
                the average institutional revenue described in such 
                subparagraph; and
                    ``(D) for academic year 2026-2027, 25 percent of 
                the average institutional revenue described in such 
                subparagraph.''.
                                 <all>