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H.R. 7895House117th Congress (2021-2023)In Committee

Combating Excessive Student Debt Act of 2022

Sponsored by Tom RiceRep. Tom Rice (R-SC)
Introduced May 27, 2022

AI-Generated Summary

Updated February 8, 2026 at 3:45 PM UTC

The Combating Excessive Student Debt Act of 2022 seeks to reduce student borrowing by ending the creation of new Federal Direct PLUS loans. It stops new loans after July 1, 2023, while allowing a limited transition for borrowers who have not yet received a PLUS loan. The bill also limits how much colleges can earn from these loans over the next four academic years.

Key Provisions

  • No new Federal Direct PLUS loans may be made on or after July 1, 2023, except for a narrow transition period for borrowers who have not yet received a loan before the bill’s enactment.
  • Borrowers who first receive a Direct PLUS loan between enactment and July 1, 2023 can keep receiving loans until they finish that program or June 30, 2027, whichever comes first.
  • Institutions’ revenue from Direct PLUS loans is capped: for 2023‑24 at the average revenue of the prior five years, then reduced to 75% of that average in 2024‑25, 50% in 2025‑26, and 25% in 2026‑27.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Education and Labor.

Education and Workforce Committee

May 27, 2022

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HouseIntro Referral

Introduced in House

May 27, 2022

HouseIntro Referral

Referred to the House Committee on Education and Labor.

Education and Workforce Committee

May 27, 2022

Bill Text

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Introduced in HouseIssued May 27, 2022

I

117th CONGRESS

2d Session

H. R. 7895

IN THE HOUSE OF REPRESENTATIVES

May 27, 2022

Mr. Rice of South Carolina introduced the following bill; which was referred to the Committee on Education and Labor

A BILL

To amend the Higher Education Act of 1965 to terminate the authority to make Federal direct PLUS loans, and for other purposes.

1.

Short title

This Act may be cited as the Combating Excessive Student Debt Act of 2022.

2.

Termination of authority to make Federal Direct PLUS Loans

Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following:

(4)

Termination of authority to make Federal Direct PLUS Loans

(A)

In general

Subject to subparagraph (B) and notwithstanding any provision of this part or part B, no new Federal Direct PLUS Loans may be made under this part on or after July 1, 2023.

(B)

Loans made before July 1, 2023

A borrower who has not received a Federal Direct PLUS Loan before the date of enactment of the Combating Excessive Student Debt Act of 2022 and for whom a Federal Direct PLUS Loan is first disbursed for any period of instruction beginning on or after such date, but not later than July 1, 2023, may be eligible to receive Federal Direct PLUS Loans until the completion of the course of study for which such loan was first disbursed or June 30, 2027, whichever occurs first.

.

3.

Limitation on institutional revenue from Federal Direct PLUS Loans

Section 487(a) of the Higher Education Act of 1965 is amended by adding at the following:

(30)

The institution will not derive institutional revenue from Federal Direct PLUS Loans in an amount that exceeds—

(A)

for academic year 2023–2024, the average such institutional revenue that the institution received for the 5 most recent academic years preceding academic year 2023–2024;

(B)

for academic year 2024–2025, 75 percent of the average institutional revenue described in subparagraph (A);

(C)

for academic year 2025–2026, 50 percent of the average institutional revenue described in such subparagraph; and

(D)

for academic year 2026–2027, 25 percent of the average institutional revenue described in such subparagraph.

.