WASHINGTON – Sen. Mike Lee (R-UT) introduced the Higher Education Reform and Opportunity (HERO) Act, a bill that brings transparency, accountability, and competition to higher education. Rep. Chip Roy (R-TX) sponsored the HERO Act in the House of Representatives.

The HERO Act aims to simplify federal student loans by offering a single option and introduces a new financial "skin-in-the-game" requirement for universities. Under this requirement, universities will be rewarded for each Pell Grant graduate but will also be obliged to repay a percentage of the total loans issued, with consideration for loan default rates and the average national unemployment rate.  

Moreover, the bill empowers states to establish alternative accreditation systems that can accredit any postsecondary institution offering programs applicable to degrees, credentials, or professional certifications. This flexibility allows states to determine clock hour and minimum program length requirements, making short-term workforce development programs and nontraditional educational providers eligible for federal student aid.

Additionally, the HERO Act mandates higher education institutions participating in federal student loan programs to publish relevant outcome information in an easily accessible format. This transparency provides students with the necessary information to make informed decisions about which institutions to attend.

“Too often, our bright young minds needlessly face the unfair choice of either drowning in debt or sacrificing their dreams of higher education,” Sen. Lee 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. It would transform our educational landscape and allow students to tailor their unique learning journey and gain the skills needed to excel in today's dynamic economy.”

"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,” Congressman Roy said. “Federal involvement has only made this problem worse. The HERO Act is an important first step to fix this and will require institutions of higher education to have some 'skin in the game' regarding their students' outcomes, simplify the federal student loan system, and perhaps most important empower states to establish alternative accreditation systems. I look forward to working with my colleagues to get this across the finish line." 

For bill text, click HERE.
For a two-pager, click HERE.