Colleges Would Have 'Skin in the Game' Under Democrats' Student-Debt Plan

Taking aim at mounting levels of student-loan debt, three prominent Democratic senators introduced legislation on Thursday that would penalize colleges and universities whose student-loan default rates exceeded certain thresholds.

By requiring that institutions have "skin in the game"—by assuming some of the risk of default in their students' federal loans—the proposed legislation would create incentives for colleges to help their students find the least-expensive sources