Published: December 2024
Organizations oppose misleadingly named College Cost Reduction Act
Consumer Action joined allies in a legislative alert urging lawmakers to vote NO on the College Cost Reduction Act (HR 6951), should the bill move to a floor vote. Despite its name, the CCRA could lead to higher student debt burdens, open the door to predatory practices, and funnel financial aid dollars into the pockets of investors and for-profit college leaders.
Consumer Action joined more than a dozen allies in a legislative alert urging lawmakers to vote NO on theCollege Cost Reduction Act (CCRA) (HR 6951), should the bill move to a floor vote. In January 2024, the House Committee on Education & the Workforce passed the CCRA bill, sponsored by Chairwoman Virginia Foxx (R-NC), on a party-line vote. Despite its name, the College Cost Reduction Act could actually lead to higher debt burdens for students by replacing the existing income-driven repayment (IDR) plans with a single plan that would increase payments for most borrowers andremove safeguards that protect borrowers from carrying debt for more than 25 years. The legislation would also reverse bipartisan policy that stopped predatory recruiting of veterans by for-profit colleges to get at their GI Bill educational benefits, while providing low-quality credentials that do not lead to the promised career opportunities. And, it would gut critical safeguards currently in place to protect students against high-cost, low-quality programs, as well as rescind borrower defense to repayment, which provides the Education Department authority to discharge loan debt when student borrowers were subjected to unfair and deceptive practices, misrepresentations, or fraud.
Lead Organization
The Institute for College Access & Success
More Information
Read the letter here.
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