Merkley, Krishnamoorthi Fight Back Against Predatory For-Profit Colleges Scamming Students with Worthless College Degrees

Washington, D.C. - Today, Oregon's U.S. Senator Jeff Merkley and U.S. Representative Raja Krishnamoorthi (IL-08) reintroduced legislation to protect students from predatory higher-education programs-which are often run by for-profit colleges-that target financially vulnerable students, leave borrowers buried in debt, and force taxpayers to foot the bill for federal aid that never delivered on its promise.

The bicameral Protecting Students from Worthless Degrees Act ensures that predatory and worthless degree programs are ineligible for federal financial aid dollars. Merkley and Krishnamoorthi's updated bill also responds to the Trump Administration's recent attacks on college affordability, including a final rule that fails to ensure that federal student aid only flows to programs that keep their commitments to students and delays accountability for students enrolled in programs that prepare them for occupations where a majority of workers receive tipped income.

"Students should not be saddled with a worthless degree or mountains of debt for pursuing the dream of higher education," said Merkley. "The Protecting Students from Worthless Degrees Act restores common-sense protections so graduates are not left with unmanageable debt and ensures that federal funds are not going toward worthless college degrees. This is a win-win for both students and taxpayers-delivering on the promise of quality education, meaningful career opportunities, and the responsible investment of federal financial aid dollars."

"Students should never spend years earning a degree, take on tens of thousands of dollars in debt, and then discover they were never actually qualified for the career they were promised," said Krishnamoorthi. "Higher education should be a pathway to the middle class-not a pipeline to debt. Our bill ensures colleges receiving taxpayer dollars actually prepare students for the careers they promise."

The bicameral Protecting Students from Worthless Degrees Act would:

• Ensure that students and taxpayers are not left footing the bill for predatory and worthless degree programs by making these programs ineligible for federal education assistance funds.
• Restore a strong debt-to-earnings standard for for-profit college programs and non-degree certificate programs at any school so that programs that consistently leave graduates with unmanageable debt relative to their earnings lose access to federal aid.
• Ensure that the earnings premium test, which measures whether the typical graduate from a program who received federal aid is earning at least as much as a typical high school graduate, applies to undergraduate certificate programs.
• Guarantee that programs that prepare students for employment in occupations where a majority of workers receive tipped income are not subject to a one-year delay in program eligibility consequences.
• Require all programs-including distance education programs-to meet any federal or state licensure requirements and programmatic accreditation that is necessary for graduates to enter their intended field.
• Ensure that states can apply and enforce their laws against online schools based in other states to provide consistent student protections.

The Protecting Students from Worthless Degrees Act is cosponsored by Senator Dick Durbin (D-IL), Senator Richard Blumenthal (D-CT), and Congressman Danny K. Davis (IL-07). The bill is endorsed by The Institute for College Access & Success (TICAS), New America's Higher Education Program, Third Way, EdTrust, The Century Foundation, and AFT: Education, Healthcare, Public Services.

"This bill takes important steps to protect students from worthless degrees that do not lead to the jobs they were promised and builds on efforts to ensure taxpayer dollars are not wasted on programs that do not deliver for students," said Christopher Madaio, Senior Advisor for Federal and State Accountability at The Institute for College Access & Success (TICAS).

"Students deserve confidence that the degrees they pursue will open doors-not leave them with broken promises or unaffordable debt. By codifying and strengthening accountability for low-financial-value programs, this legislation reinforces the principle that federal dollars should support programs that deliver real opportunity and economic mobility. Third Way applauds Senator Merkley and Representative Krishnamoorthi for their leadership in protecting students and safeguarding taxpayers' investment in higher education," said Michelle Dimino, Director of Education at Third Way,

"Students deserve programs that deliver real economic opportunity, not mountains of unaffordable debt. The Protecting Students from Worthless Degrees Act would help restore meaningful accountability in higher education and protect students from low-value, often predatory programs," said Carolyn Fast, Director of Higher Education Policy and Senior Fellow at The Century Foundation.

"Research has consistently shown that the number one reason students go to college is to get a good job. This bill takes a meaningful step towards ensuring students can get that job and earn enough to be able to repay the debt they take on when they enroll," said Wesley Whistle, Project Director for Student Success & Affordability at New America.

Previously, Merkley led the charge to overturn a new rule that caps federal student loans and overhauls the student loan system. He also wrote the Savings Opportunity and Affordable Repayment (SOAR) Act to better protect student loan borrowers from unaffordable payments and runaway balances due to rapidly accruing interest, while offering a clearer path to debt relief after at least a decade of payments.

Full text of the Protecting Students from Worthless Degrees Act can be found by clicking here.

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