Hill Country Chronicle

Rep. Chip Roy and Sen. Mike Lee have reintroduced the Higher Education Reform Opportunity (HERO) Act, aiming to reform federal involvement in higher education and student loans. Congressman Roy expressed concerns about universities becoming "government-run crony rackets" focused on political activism rather than workforce preparation. He stated that the HERO Act would require institutions to have some responsibility for their students' outcomes, simplify the federal student loan system, and empower states to establish alternative accreditation systems.

Senator Lee highlighted the financial challenges faced by students, stating: “Too often, our bright young minds needlessly face the unfair choice of either drowning in debt or sacrificing their dreams of higher education.” He noted that the HERO Act seeks to alleviate financial burdens by capping loans that increase costs, allowing students to tailor their learning journeys.

The HERO Act includes several key reforms:

Title I focuses on simplifying federal student loans into a single option while phasing out forgiveness and repayment programs. It sets borrowing limits for dependent undergraduate students at $30,000 with a 15-year repayment period. Independent undergraduates can borrow up to $60,000, while graduate students can access $74,000. Current federal loan recipients will be grandfathered under existing terms if they graduate before September 30, 2028.

Title II allows states to create alternative accreditation systems for postsecondary education institutions. States would submit plans to the Secretary of Education and could set their own program length and standards.

Title III mandates transparency from institutions participating in federal student loan programs by requiring them to publish outcome information in an accessible format.

Title IV introduces accountability measures by requiring universities to repay fines based on outstanding federal student loans with delinquent payments. Institutions would also receive $400 per Pell Grant graduate.

The full text of the legislation is available for review.