On Jan. 31, 2024, the House Education and the Workforce Committee approved the College Cost Reduction Act (CCRA) (H.R. 6951), an overhaul of federal student aid, lending, repayment, and accreditation processes. The bill is meant to be a significant step toward reauthorizing the Higher Education Act of 1965, last updated in 2008.
The following data analysis focuses on two key parts of the CCRA:
- Risk-sharing (CCRA Section 301): The bill would require institutions to make annual risk-sharing payments based on the non-repayment balance of the student cohorts.
- PROMISE Grants (CCRA Section 212): The Promoting Real Opportunities to Maximize Investments and Savings in Education (PROMISE) Grants is a new performance-based program that would replace Leveraging Educational Assistance Partnership Program beginning in award year 2026-2027. Institutions could opt into the program, with grants awarded every six years, and must adhere to a maximum price guarantee to completion for each program of study.
Despite limitations in publicly available data, this analysis offers valuable indications of how the CCRA might affect higher education institutions overall.