The College Cost Reduction Act of 2024 (CCRA), introduced by Rep. Virginia Foxx and co-sponsored by over 150 Republican lawmakers, aims to reform higher education financing. The bill focuses on reducing tuition costs, enhancing transparency, and holding institutions accountable for directing students toward expensive degrees with low returns on investment.
Key provisions of the CCRA include a risk-sharing framework that holds colleges accountable for programs that fail to prepare students for the workforce. It also links federal funding to career outcomes and disincentivizes loans for postsecondary programs with low returns on investment through cost guarantees and loan caps.
The act would prohibit future attempts at mass loan cancellation by the executive branch. It proposes consolidating federal loan repayment plans into two options: a standard plan and an income-driven repayment (IDR) plan, which would cap payments at 10% of income above $21,870.
The CCRA introduces PROMISE grants funded by university risk-sharing payments, incentivizing colleges to lower tuition and improve graduation rates. Colleges would share responsibility for unpaid loans and could reduce liabilities by closing low ROI programs.
Loan limits are set at $50,000 for undergraduates, $100,000 for graduate students, and $150,000 for professional programs. Grad PLUS and Parent PLUS loans would be eliminated.
If enacted via reconciliation, the legislation would increase institutional accountability through performance-based grants and prevent future bailouts by prohibiting student loan debt transfer without congressional approval.
The act addresses needs such as tackling student debt—over $1.7 trillion owed collectively—and protecting taxpayers from financial burdens due to student loan forgiveness schemes. It aims to restore accountability in higher education institutions charging excessive tuition for low-value degrees.
By aligning degree programs with labor market needs through PROMISE grants and risk-sharing measures, the CCRA seeks to ensure higher education remains a beneficial investment that boosts economic mobility.
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