Newly sworn-in Mississippi Sen. Donna Lowenthal, a Republican, has introduced legislation that would place new limits on future Federal Direct Loan borrowing and create program-level assessments for colleges whose former students struggle to repay federal loans.

The Higher Education Cost Transparency Act is Lowenthal’s first bill since joining the Senate in August 2026, according to a press release from her office. The proposal comes as student debt and college affordability remain prominent concerns for borrowers, families and policymakers.

Under the bill, future borrowing through Federal Direct Loans would be capped at $50,000 for undergraduate and certificate programs, $100,000 for graduate programs, and $150,000 for professional graduate programs. Borrowers would also face a total federal borrowing cap of $200,000.

The legislation would include a grandfather provision for current students, meaning the newly proposed borrowing limits would apply to future loans rather than retroactively changing the terms for students already enrolled, according to the release.

Lowenthal said the measure is intended to make colleges more accountable for the financial outcomes associated with their programs while limiting the amount of debt students can take on through federal lending.

“Colleges should open doors to opportunity, not encourage young Americans to take on unlimited debt without a clear understanding of the financial consequences,” Lowenthal said in the release. She said the bill would protect taxpayers and help students avoid long-term debt burdens.

In addition to borrowing limits, the proposal would require annual program-level assessments at higher-education institutions. The assessments would be based on the share of borrowers who are classified as not making progress toward repayment.

The bill defines that group as borrowers whose outstanding balances have not fallen below their original principal, borrowers who are more than 90 days delinquent, and borrowers in default. The release did not specify what penalties, corrective actions or eligibility changes institutions could face following an assessment.

Lowenthal said the program-by-program approach is designed to distinguish between academic programs with stronger labor-market and repayment outcomes and those in which graduates have more difficulty managing federal debt.

“We don’t want to punish an entire school because one program has poor repayment outcomes,” Lowenthal said. “If a college has a strong nursing, engineering, or accounting program, those graduates are likely getting value for their degree and paying back their loans. But if another program at that same school is leaving students with debt they can’t manage and credentials that don’t pay off, then that program needs to improve.”

Lowenthal previously led the National Responsibility Monitor, a private institutional-risk and responsibility firm based in DeSoto County. Her office described the legislation as consistent with her focus on transparency, institutional accountability and fiscal restraint.

The proposal enters a Senate controlled by Republicans, who hold 26 seats. Democrats hold 23 seats, while one independent caucuses with them. No information was provided on committee referral, co-sponsors, the bill’s timetable, or the response of higher-education groups and student borrowers.