Preventing Financial Exploitation in Higher Education Act This bill establishes financial penalties for institutions of higher education (IHEs) with endowments of $2.5 billion or more that have specified percentages of current and former students who default, are delinquent, or underpay on their federal student loans. The bill also imposes an increased excise tax on net investment income of certain IHEs that increase tuition beyond certain levels. Specifically, the bill requires such an IHE to pay penalties to the Department of Education based on the IHE's cohort default rate (the percentage of how many borrowers default on their federal student loans in a fiscal year), cohort delinquency rate (the percentage of borrowers who are between 31- and 360-days past-due on their federal student loans), and cohort underpayment rate (the percentage of borrowers who are making regular payments on their federal student loans, are neither delinquent nor in default on those loans, but for whom the outstanding balances on their loans exceed the sum of the original loan balances). For example, for FY2025, an IHE with a cohort default rate of 11% or more must pay a penalty in an amount equal to 30% of the total outstanding balance of principal and interest due on all federal student loans. The bill also imposes an increased excise tax equal to 25% of the net investment income of an IHE with an endowment of $2.5 billion or more that charges tuition exceeding the inflation adjustment base amount for the taxable year.
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Bill introduced
Lobbying filed by NATIONAL ASSN OF INDEPENDENT COLLEGES & UNIVERSITIES
Lobbying filed by NATIONAL ASSN OF INDEPENDENT COLLEGES & UNIVERSITIES
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
| Registrant | Client | Amount | Filed | Period | Issues |
|---|---|---|---|---|---|
| NATIONAL ASSN OF INDEPENDENT COLLEGES & UNIVERSITIES | NATIONAL ASSN OF INDEPENDENT COLLEGES & UNIVERSITIES | $200.0K | Jul 21, 2025 | 2025Q2 | EDU |
| NATIONAL ASSN OF INDEPENDENT COLLEGES & UNIVERSITIES | NATIONAL ASSN OF INDEPENDENT COLLEGES & UNIVERSITIES | $190.0K | Apr 17, 2025 | 2025Q1 | EDU |
The lobbying table lists Senate LDA quarterly reports (LD-2) that cite this bill by number and cover a quarter of the 119th Congress. An LD-2 names a bill as “H.R. 1234” with no Congress, so a report on another Congress, which can only concern a different bill with the same number, is left out, even when it was filed after this Congress began. The amount is what the registrant reported for the whole filing, across every issue on it, not spending on this bill. Official actions and the bill summary come from Congress.gov, and votes from the roll-call record. This page no longer pairs the bill with members' stock trades: matching lobbying clients to traded companies by name, and trades to a bill by date, is not something the records establish.