Nestled inside Republicans’ One Big Beautiful Bill Act is a bold idea: to penalize colleges and universities whose students leave with mountains of student loan debt but not nearly the earnings boost to pay it off—and to reward schools that do the opposite.
Or, as U.S. Secretary of Education Linda McMahon told lawmakers in a recent hearing, it’s a way to force schools to have “a little skin in the game.”
This risk-sharing plan would, among other things, require higher education institutions— public and private, for-profit and nonprofit, undergraduate and graduate—to reimburse the federal government for a portion of the federal loan debt their students do not repay.
Read more at NPR.
