SLC Times

Senator Mike Lee from Utah has introduced the Higher Education Reform and Opportunity (HERO) Act in the Senate, with Representative Chip Roy of Texas sponsoring it in the House of Representatives. The legislation aims to bring more transparency, accountability, and competition to higher education.

The HERO Act proposes a simplification of federal student loans by offering a single loan option. It also introduces a financial "skin-in-the-game" requirement for universities. Under this requirement, universities will be rewarded for each Pell Grant graduate but will also need to repay a portion of the total loans issued, taking into account loan default rates and the national unemployment rate.

The bill further empowers states to create alternative accreditation systems that can accredit any postsecondary institution offering programs applicable to degrees, credentials, or professional certifications. This would allow states flexibility in determining program requirements and make short-term workforce development programs eligible for federal student aid.

Additionally, the HERO Act requires higher education institutions involved in federal student loan programs to publish relevant outcome information in an accessible format. This is intended to help students make informed decisions about their educational choices.

Senator Lee commented on the bill's intent: “Too often, our bright young minds needlessly face the unfair choice of either drowning in debt or sacrificing their dreams of higher education,” he said. “The HERO Act aims to alleviate the ever-increasing financial burden required of students pursuing their educational goals by capping loans that exacerbate costs."

Congressman Roy added his perspective: "Universities have largely become government-run crony rackets focused on turning students into far-left political activists rather than young adults prepared for success in the workforce,” he stated. He emphasized that "the HERO Act is an important first step" towards reforming these issues and empowering states with alternative accreditation systems.