Rep. Houchin introduces measure to address student debt

(WASHINGTON, D.C.) – Congresswoman Erin Houchin (R-District) has introduced bipartisan legislation that helps students in college or trade school. 

The Outcomes-Based Financing for Students Act creates clear federal standards for outcomes-based financing products, requiring disclosures, affordability protections, and transparency while supporting innovative financing models that expand access to education and workforce development opportunities.

“Too often, state higher education programs leave students in debt for degrees that have little value in the market,” Rep. Houchin said. 

This measure will require schools to show that the programs they offer are worth the price of admission.

“By doing this, we can help more Americans get the skills they need for jobs that are in demand,” she added. 

Rep. Houchin introduced the bill along with a democratic congressman from New York. 

There is similar legislation that was authored by Indiana Senator Todd Young, Delaware Senator Chris Coons and Virginia Senator Mark Warner. 

The Outcomes-Based Financing for Students Act provides consumer protections by establishing clear disclosure requirements, affordability standards, payment limitations, and other safeguards for outcomes-based financing products while creating regulatory certainty for providers and students alike. 

The legislation also updates federal law to recognize these financing models and support their responsible use in workforce training and higher education.