Skin in the Game Act

II 116TH CONGRESS 1ST SESSION S. 2124 To amend the Higher Education Act of 1965 to provide for institutional shared responsibility for student loan default. IN THE SENATE OF THE UNITED STATES JULY 16, 2019 Mr. HAWLEY introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Higher Education Act of 1965 to provide for institutional shared responsibility for student loan default. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Skin in the Game Act’’. 4 SEC. 2. INSTITUTIONS OF HIGHER EDUCATION REPAYING A 5 PORTION OF STUDENT LOAN DEBTS. 6 Section 454 of the Higher Education Act of 1965 (20 7 U.S.C. 1087d) is amended by adding at the end the fol- 8 lowing: 9 VerDate Sep 11 2014 04:00 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2124.IS S2124 kjohnson on DSK79L0C42 with BILLS 2 •S 2124 IS ‘‘(d) INSTITUTIONS OF HIGHER EDUCATION REPAY- 1 ING A PORTION OF STUDENT LOAN DEBTS.— 2 ‘‘(1) IN GENERAL.—Each institution of higher 3 education participating in the direct student loan 4 program under this part for a fiscal year shall be 5 liable for 50 percent of any student loan balance 6 that is in default for a loan made under this part 7 that was used towards the cost of attendance at the 8 institution. 9 ‘‘(2) NO OFFSET.—An institution of higher 10 education shall not increase the costs of tuition at 11 the institution, charge any additional fee to stu- 12 dents, or otherwise increase the cost of attendance 13 at the institution in order to offset the liability of 14 the institution under paragraph (1).’’. 15 Æ VerDate Sep 11 2014 04:00 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S2124.IS S2124 kjohnson on DSK79L0C42 with BILLS