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This bill makes arbitration agreements unenforceable for enrollment contracts between students and higher education institutions, and prohibits those institutions from limiting students' ability to sue them in court. Sec. 2, Arbitration agreements not applicable: The federal law that generally requires courts to enforce arbitration agreements (Chapter 1 of Title 9 of the U.S. Code) will not apply to any enrollment agreement between a student and an institution of higher education. An enrollment agreement is any contract where a student makes a financial commitment in exchange for enrollment in a program of study. An institution of higher education is defined by the Higher Education Act of 1965. Sec. 3, Ban on limits to student lawsuits: The bill adds a new requirement to the Higher Education Act of 1965. Institutions that participate in federal student aid programs must not require any student to agree to, and must not enforce, any limitation or restriction on a student's ability to pursue a claim in court, either alone or with others. This includes limits on choice of law, jury trial, or venue. Sec. 4, Effective date: The bill and its changes take effect one year after the date it is enacted into law.
Summary of the bill text as introduced in Senate (Jun 11, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.