A proposed accountability measure in a House budget bill aims to hold colleges financially responsible for students' unpaid loans through a risk-sharing system. While the concept has drawn bipartisan support, institutions argue that many factors influencing student outcomes are beyond their control. Previous attempts to implement similar plans have faced backlash from higher education advocates, and critics warn that the current proposal relies on a complex, untested formula. As House Republicans seek major budget cuts, this proposal signals their intentions for future higher education reform.
"While the risk-sharing plan aims at making colleges accountable for student loan outcomes, the execution poses challenges due to factors beyond institutions' control, complicating fair assessments."
"Although some lawmakers support the risk-sharing concept, higher education institutions argue that individual student decisions complicate accountability, making it difficult to fairly assess their performance."
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