Washington, D.C. – Congresswoman Beth Van Duyne introduced H.R. 7831, the Preventing Financial Exploitation in Higher Education Act, to impose financial penalties on universities with multi-billion dollar endowments who have high percentages of students defaulting on Federal student loans.  H.R. 7831 would further impose penalties on wealthy universities that raise their tuition on low-and middle-income students.

“The promise of a college education has always been to help students gain valuable knowledge and experience that would allow them to secure a higher-paying career trajectory.  Yet, with less than 50% of college graduates actually earning employment in their field of study, it’s clear that universities are failing their students and offering far too many worthless degrees whose main purpose is to gouge students with ever higher tuition costs,” said Congresswoman Van Duyne. “H.R. 7831 is a necessary bill to impose consequences on wealthy universities who are failing to serve the very students most disproportionately impacted by student debt. With college tuition far outpacing core inflation for decades, it is apparent we need to compel universities to alter this unsustainable direction.  To help change the conduct and culture at these institutions, it’s time for these universities to put their own skin in the game and assume some financial responsibility for student debt burden and loan delinquencies.”   

Click HERE for bill text.

Fast Facts

Cost of Higher Education vs Core Inflation

Forbes – In 1980, the price to attend a four-year college full-time was $10,231 annually—including tuition, fees, room and board, and adjusted for inflation—according to the National Center for Education Statistics. By 2019-20, the total price increased to $28,775. That’s a 180% increase.

Best Colleges – Accounting for inflation by measuring in 2021-2022 constant dollars, the average tuition at four-year colleges rose 62% at public schools and 32% at private schools between 2001 and 2021.

College Degrees Not Delivering on Their Promise

CBS News – More than half of Americans who earned college diplomas find themselves working in jobs that don't require a bachelor's degree or utilize the skills acquired in obtaining one.

Disproportionate Student Debt Burden in America’s Middle Class 

Michigan Daily – Middle-class students disproportionately suffer from rising interest rates because they, on average, take out more loans than other students.

Inside Higher Ed – College students from middle-income families are more likely to end up with student loan debt than their peers from both lower and higher socioeconomic backgrounds.