Responsible Borrowing Act of 2021
This bill authorizes institutions of higher education (IHEs) to prorate or limit the amount of a Federal Direct Loan that an enrolled student may borrow for an academic year.
The bill specifies the factors that an IHE may use to limit these loans. These factors include the average starting salary for typical occupations pursued by graduates of the program, the enrollment status of the student (i.e., full- or part-time enrollment), the credential level of the program (e.g., degree or certificate), and the year of the program for which the student is seeking the loan.
Upon request of a student whose loan has been prorated or limited, an IHE may increase the amount of the loan within otherwise applicable limits if the student demonstrates special circumstances or exceptional need.
To amend the Higher Education Act of 1965 to authorize institutions of 
higher education to limit the amount of a Federal loan that an enrolled 
                          student may borrow.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsible Borrowing Act of 2021''.

SEC. 2. INSTITUTIONAL DETERMINED LIMITS.

    Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(a)) is amended by adding at the end the following new paragraph:
            ``(4) Institutional determined limits.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this Act, an institution of higher 
                education (at the discretion of a financial aid 
                administrator at the institution) may prorate or limit 
                the amount of a loan any student enrolled in a program 
                of study at that institution may borrow under this part 
                for an academic year--
                            ``(i) if the institution can reasonably 
                        demonstrate that student debt levels are or 
                        would be excessive for such program by using 
                        the most recently available data for the 
                        average starting salary in the region in which 
                        the institution is located for typical 
                        occupations pursued by graduates of such 
                        program from the Bureau of Labor Statistics, 
                        the applicable State agency, or the 
                        institution;
                            ``(ii) in a case in which the student is 
                        enrolled on a less than full-time basis or the 
                        student is enrolled for less than the period of 
                        enrollment to which the annual loan limit 
                        applies under this part, based on the student's 
                        enrollment status;
                            ``(iii) based on the credential level (such 
                        as a degree, certificate, or other recognized 
                        educational credential) that the student would 
                        attain upon completion of such program; or
                            ``(iv) based on the year of the program for 
                        which the student is seeking such loan.
                    ``(B) Increases for individual students.--Upon the 
                request of a student whose loan amount for an academic 
                year has been prorated or limited under subparagraph 
                (A), an eligible institution (at the discretion of the 
                financial aid administrator at the institution) may 
                increase such loan amount to an amount not exceeding 
                the annual loan amount applicable to such student under 
                this part for such academic year if such student 
                demonstrates special circumstances or exceptional need.
                    ``(C) Rule of construction.--Nothing in this 
                paragraph shall be construed to authorize a proration 
                or limiting of loan amounts by an institution of higher 
                education because of a student's race, color, religion, 
                sex, marital status, age, disability, or national 
                origin.''.
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Responsible Borrowing Act of 2021
To amend the Higher Education Act of 1965 to authorize institutions of higher education to limit the amount of a Federal loan that an enrolled student may borrow.
Responsible Borrowing Act of 2021
Rep. Grothman, Glenn