Senators Elizabeth Warren and Dick Durbin reintroduced the Accreditation Reform and Enhanced Accountability Act on July 21, 2026, legislation that would tie college accreditation to student loan repayment outcomes and require schools to demonstrate their graduates can manage their debt relative to earnings.
The bill requires the Department of Education to establish guidelines for evaluating colleges based on student-loan repayment outcomes and the debt-to-earnings ratio of their graduates, according to fact sheets reviewed by Business Insider. Accreditors would face stricter standards for determining whether schools can participate in federal student aid programs.
The reintroduction follows findings by the Biden administration that 1.7 million student-loan borrowers were defrauded by accredited schools between 2021 and 2024. Warren and Durbin argue the data underscores the need for stronger oversight of the accreditation system that governs access to federal student aid.
“We need to overhaul our accreditation system to make sure students get an education that will improve their lives, not leave them jobless and buried in debt,” Warren said in a statement.
Strengthening Accreditor Accountability
The legislation would require accreditors to respond more quickly to state and federal investigations involving alleged fraud or misconduct at schools. It also mandates increased transparency around accreditation decisions that affect student financial outcomes.
The bill arrives as the Department of Education advances its own accreditation proposal, which includes a requirement that accreditors ensure schools uphold free speech protections on campuses. Some negotiators have criticized that provision, arguing First Amendment issues fall outside the accreditor’s traditional scope.
Staffing cuts at the Department of Education have intensified calls for stronger oversight of the student-loan system. A recent Office of the Inspector General report found that offices responsible for collecting financial aid data on schools participating in federal student aid programs were among those hardest hit by reductions.
Undersecretary of Education Nicholas Kent said in a statement that the measures align with the department’s goals of “lowering costs, simplifying repayment, connecting education to workforce needs, strengthening accountability, and restoring confidence in our accreditation system.”
The Accreditation Reform and Enhanced Accountability Act was first introduced in 2016 by Warren, Durbin, and Senator Brian Schatz. Its reintroduction reflects ongoing Democratic efforts to hold colleges accountable for leaving students with unmanageable debt burdens in an era of rising default rates and federal education budget constraints.
Sources
- Business Insider — Details on the bill’s provisions, the 1.7 million borrower fraud finding, and quotes from Warren and Undersecretary Kent
- Traders Union — Reporting on the bill’s reintroduction and staffing cuts at the Department of Education
