H.R. 10562

Students Not Profits Act of 2026

Sponsor: Pramila Jayapal

4 cosponsors
Follow this bill

Official summary

No official summary yet.

Text of the bill

Expand all
Sec. 5. Personal liability

Section 498(e) of the Higher Education Act of 1965 (20 U.S.C. 1099c(e)) is amended—

(1) in paragraph (1)—

(A) by striking Secretary may and inserting the following:

Text this section adds to the law

Secretary—

(A) may

(B) in subparagraph (B), by inserting subject to subparagraph (B), before the assumption;

(C) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and conforming the margins accordingly;

(D) by striking the period at the end and inserting ; and; and

(E) by adding at the end the following:

Text this section adds to the law

(B) shall require the assumption of personal liability, by one or more individuals who exercise substantial control over such institution, as determined by the Secretary in accordance with paragraph (2), for financial losses to the Federal Government, student assistance recipients, and other program participants for funds under this title, as a result of loan discharge under section 437(c) due to the closure of the institution, or a successful borrower defense claim filed under section 455(h) with respect to such institution.

; and

(2) in paragraph (4), by striking subparagraphs (A) and (B) of paragraph (1) and inserting clauses (i) and (ii) of subparagraph (A), and subparagraph (B), of paragraph (1).