Student-loan borrowers are taking on debt they can't pay off. There's a renewed push to prevent that.
Democratic lawmakers are reintroducing legislation aimed at increasing accountability for colleges regarding student-loan debt. The bill seeks to establish stricter guidelines for federal aid eligibility based on student repayment outcomes and debt-to-earnings ratios.
Why it matters
This legislation addresses the growing crisis of student debt and aims to protect borrowers from predatory or low-value educational programs.
Sen. Elizabeth Warren is co-leading an effort to prevent student-loan borrowers from taking on unmanageable debt. Daniel Heuer/Bloomberg via Getty Images Democratic lawmakers reintroduced legislation that would prevent unmanageable student debt burdens. It calls for strengthening accountability in the system that determines whether schools can receive federal aid. The Trump administration recently advanced its own proposal on college accreditation. Democratic lawmakers want to hold colleges accountable for unmanageable student-loan burdens . Sens. Elizabeth Warren and Dick Durbin are reintroducing the Accreditation Reform and Enhanced Accountability Act. It's aimed at strengthening accountability in the system that determines whether schools can receive federal aid for students. The bill would require the Department of Education to establish guidelines for evaluating colleges, including student-loan repayment outcomes and how much debt students take out postgrad compared to their earnings, according to a fact sheet on the legislation first viewed by Business Insider.
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