Prevent PROSPER from going to the House floor!
Back in January, the House introduced, and passed out of Committee, a bill that would update the Higher Education Act called the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. Unfortunately, the name is ironic because the PROSPER Act would negatively impact higher education in many ways:
- Reduction of federal aid programs: PROSPER would eliminate the Public Service Loan Program (PSLF), which promises loan forgiveness for borrowers working in public service or non-profit sectors. PSLF is one of the only lifelines that student loan borrowers have been offered.
- Deregulation of for-profit schools: PROSPER would eliminate the “90/10 Rule,” which says for-profit colleges can’t receive more than 90% of their income from federal aid, as well as the Gainful Employment Rule, which ensures colleges are providing quality education before offering them federal aid.
- Reduction of student loan repayment plans: By consolidating 6 existing different student loan repayment plan options into only 2 options, which are less sensitive to borrowers’ respective incomes, PROSPER would likely result in higher payments for both low- and high-income borrowers.
- Increased cost of student loans: PROSPER would get rid of affordable Perkins Loans, which are federal student loans for low-income undergraduate and graduate students. Perkins Loans have lower interest rates than other federal loans, and eliminating them could make the costs of student loans more expensive.
This bill may go to the House floor for passage in the very near future. ⏰ Time is running out to prevent this bill from passing the House, and you can help make a difference by taking action now!
The PROSPER act would reduce federal aid programs, reduce consumer protections, diminish student loan repayment options, and potentially increase the cost of taking out loans. The bill may go to the House floor for passage in the very near future, so time is running out to take action!