| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 801 |
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| 5 | 5 | | To amend the Higher Education Act of 1965 to provide for fiscal account- |
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| 6 | 6 | | ability, to require institutions of higher education to publish information |
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| 7 | 7 | | regarding student success, to provide for school accountability for student |
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| 8 | 8 | | loans, and for other purposes. |
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| 9 | 9 | | IN THE SENATE OF THE UNITED STATES |
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| 10 | 10 | | FEBRUARY27, 2025 |
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| 11 | 11 | | Mr. L |
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| 12 | 12 | | EEintroduced the following bill; which was read twice and referred to |
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| 13 | 13 | | the Committee on Health, Education, Labor, and Pensions |
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| 14 | 14 | | A BILL |
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| 15 | 15 | | To amend the Higher Education Act of 1965 to provide |
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| 16 | 16 | | for fiscal accountability, to require institutions of higher |
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| 17 | 17 | | education to publish information regarding student suc- |
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| 18 | 18 | | cess, to provide for school accountability for student |
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| 19 | 19 | | loans, and for other purposes. |
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| 20 | 20 | | Be it enacted by the Senate and House of Representa-1 |
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| 21 | 21 | | tives of the United States of America in Congress assembled, 2 |
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| 22 | 22 | | SECTION 1. SHORT TITLE. 3 |
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| 23 | 23 | | This Act may be cited as the ‘‘Higher Education Re-4 |
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| 24 | 24 | | form and Opportunity Act’’. 5 |
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| 26 | 26 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 27 | 27 | | •S 801 IS |
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| 28 | 28 | | TITLE I—FISCAL 1 |
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| 29 | 29 | | ACCOUNTABILITY 2 |
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| 30 | 30 | | SEC. 101. SIMPLIFICATION OF FEDERAL STUDENT LOANS. 3 |
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| 31 | 31 | | (a) T |
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| 32 | 32 | | ERMINATION.—Section 451 of the Higher Edu-4 |
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| 33 | 33 | | cation Act of 1965 (20 U.S.C. 1087a) is amended— 5 |
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| 34 | 34 | | (1) in subsection (a), by adding at the end the 6 |
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| 35 | 35 | | following: ‘‘No sums may be expended after Sep-7 |
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| 36 | 36 | | tember 30, 2028, with respect to loans under this 8 |
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| 37 | 37 | | part for which the first disbursement is after such 9 |
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| 38 | 38 | | date, except Federal Direct simplification loans 10 |
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| 39 | 39 | | under section 460A.’’; and 11 |
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| 40 | 40 | | (2) by adding at the end, the following: 12 |
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| 41 | 41 | | ‘‘(d) T |
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| 42 | 42 | | ERMINATION OFAUTHORITYTOMAKENEW 13 |
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| 43 | 43 | | L |
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| 44 | 44 | | OANS.—Notwithstanding subsection (a) or any other 14 |
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| 45 | 45 | | provision of law— 15 |
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| 46 | 46 | | ‘‘(1) no new loans may be made under this part 16 |
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| 47 | 47 | | after September 30, 2028, except Federal Direct 17 |
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| 48 | 48 | | simplification loans under section 460A; and 18 |
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| 49 | 49 | | ‘‘(2) no funds are authorized to be appro-19 |
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| 50 | 50 | | priated, or may be expended, under this Act, or any 20 |
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| 51 | 51 | | other Act to make loans under this part for which 21 |
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| 52 | 52 | | the first disbursement is after September 30, 2028, 22 |
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| 53 | 53 | | except Federal Direct simplification loans under sec-23 |
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| 54 | 54 | | tion 460A, or as expressly authorized by an Act of 24 |
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| 56 | 56 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 57 | 57 | | •S 801 IS |
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| 58 | 58 | | Congress enacted after the date of enactment of the 1 |
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| 59 | 59 | | Higher Education Reform and Opportunity Act. 2 |
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| 60 | 60 | | ‘‘(e) S |
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| 61 | 61 | | TUDENT ELIGIBILITYBEGINNINGWITH 3 |
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| 62 | 62 | | A |
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| 63 | 63 | | WARDYEAR2025.— 4 |
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| 64 | 64 | | ‘‘(1) N |
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| 65 | 65 | | EW BORROWERS.—No loan may be made 5 |
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| 66 | 66 | | under this part to a new borrower for which the first 6 |
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| 67 | 67 | | disbursement is after June 30, 2025, except Federal 7 |
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| 68 | 68 | | Direct simplification loans under section 460A. 8 |
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| 69 | 69 | | ‘‘(2) B |
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| 70 | 70 | | ORROWERS WITH OUTSTANDING BAL -9 |
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| 71 | 71 | | ANCES.—Subject to paragraph (3), with respect to a 10 |
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| 72 | 72 | | borrower who, as of July 1, 2025, has an out-11 |
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| 73 | 73 | | standing balance of principal or interest owing on a 12 |
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| 74 | 74 | | loan made under this part that is not a Federal Di-13 |
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| 75 | 75 | | rect simplification loan under section 460A, such 14 |
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| 76 | 76 | | borrower may— 15 |
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| 77 | 77 | | ‘‘(A) in the case of such a loan made to 16 |
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| 78 | 78 | | the borrower for enrollment in a program of un-17 |
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| 79 | 79 | | dergraduate education, borrow loans made 18 |
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| 80 | 80 | | under this part that are not Federal Direct 19 |
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| 81 | 81 | | simplification loans under section 460A for any 20 |
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| 82 | 82 | | program of undergraduate education through 21 |
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| 83 | 83 | | the close of September 30, 2028; 22 |
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| 84 | 84 | | ‘‘(B) in the case of such a loan made to 23 |
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| 85 | 85 | | the borrower for enrollment in a program of 24 |
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| 86 | 86 | | graduate or professional education, borrow 25 |
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| 88 | 88 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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| 89 | 89 | | •S 801 IS |
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| 90 | 90 | | loans made under this part that are not Federal 1 |
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| 91 | 91 | | Direct simplification loans under section 460A 2 |
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| 92 | 92 | | for any program of graduate or professional 3 |
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| 93 | 93 | | education through the close of September 30, 4 |
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| 94 | 94 | | 2028; and 5 |
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| 95 | 95 | | ‘‘(C) in the case of such a loan made to 6 |
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| 96 | 96 | | the borrower on behalf of a dependent student 7 |
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| 97 | 97 | | for the student’s enrollment in a program of 8 |
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| 98 | 98 | | undergraduate education, borrow loans made 9 |
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| 99 | 99 | | under this part that are not Federal Direct 10 |
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| 100 | 100 | | simplification loans under section 460A on be-11 |
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| 101 | 101 | | half of such student through the close of Sep-12 |
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| 102 | 102 | | tember 30, 2028. 13 |
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| 103 | 103 | | ‘‘(3) L |
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| 104 | 104 | | OSS OF ELIGIBILITY.—A borrower de-14 |
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| 105 | 105 | | scribed in paragraph (2) who borrows a Federal Di-15 |
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| 106 | 106 | | rect simplification loan made under section 460A for 16 |
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| 107 | 107 | | which the first disbursement is made before Sep-17 |
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| 108 | 108 | | tember 30, 2028, shall lose the borrower’s eligibility 18 |
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| 109 | 109 | | to borrow a loan under this part that is not a Fed-19 |
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| 110 | 110 | | eral Direct simplification loan under section 460A in 20 |
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| 111 | 111 | | accordance with paragraph (2).’’. 21 |
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| 112 | 112 | | (b) F |
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| 113 | 113 | | EDERALDIRECTSIMPLIFICATIONLOANS.— 22 |
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| 114 | 114 | | Part D of title IV of the Higher Education Act of 1965 23 |
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| 115 | 115 | | (20 U.S.C. 1087a et seq.) is amended by adding at the 24 |
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| 116 | 116 | | end the following: 25 |
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| 118 | 118 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
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| 119 | 119 | | •S 801 IS |
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| 120 | 120 | | ‘‘SEC. 460A. FEDERAL DIRECT SIMPLIFICATION LOANS. 1 |
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| 121 | 121 | | ‘‘(a) I |
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| 122 | 122 | | NGENERAL.—Beginning on July 1, 2025, ex-2 |
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| 123 | 123 | | cept as provided in section 451(e), the Secretary shall 3 |
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| 124 | 124 | | make loans to borrowers under this section. Loans made 4 |
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| 125 | 125 | | under this section shall be known as Federal Direct sim-5 |
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| 126 | 126 | | plification loans. 6 |
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| 127 | 127 | | ‘‘(b) F |
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| 128 | 128 | | EDERALDIRECTSIMPLIFICATIONLOANS.— 7 |
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| 129 | 129 | | The provisions of this part shall apply with respect to Fed-8 |
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| 130 | 130 | | eral Direct simplification loans, except that Federal Direct 9 |
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| 131 | 131 | | simplification loans shall be made in accordance with the 10 |
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| 132 | 132 | | following: 11 |
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| 133 | 133 | | ‘‘(1) The applicable rate of interest on a loan 12 |
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| 134 | 134 | | made under this section shall— 13 |
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| 135 | 135 | | ‘‘(A) in the case of such loans issued to 14 |
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| 136 | 136 | | undergraduate students, for loans disbursed 15 |
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| 137 | 137 | | during any 12-month period beginning on July 16 |
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| 138 | 138 | | 1 and ending on June 30, be determined on the 17 |
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| 139 | 139 | | preceding June 1 and be equal to the lesser 18 |
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| 140 | 140 | | of— 19 |
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| 141 | 141 | | ‘‘(i) a rate equal to the high yield of 20 |
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| 142 | 142 | | the 10-year Treasury note auctioned at the 21 |
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| 143 | 143 | | final auction held prior to such June 1 22 |
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| 144 | 144 | | plus 2.05 percent; or 23 |
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| 145 | 145 | | ‘‘(ii) 8.25 percent; and 24 |
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| 146 | 146 | | ‘‘(B) in the case of such loans issued to 25 |
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| 147 | 147 | | graduate or professional students, for loans dis-26 |
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| 149 | 149 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
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| 150 | 150 | | •S 801 IS |
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| 151 | 151 | | bursed during any 12-month period beginning 1 |
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| 152 | 152 | | on July 1 and ending on June 30, be deter-2 |
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| 153 | 153 | | mined on the preceding June 1 and be equal to 3 |
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| 154 | 154 | | the lesser of— 4 |
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| 155 | 155 | | ‘‘(i) a rate equal to the high yield of 5 |
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| 156 | 156 | | the 10-year Treasury note auctioned at the 6 |
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| 157 | 157 | | final auction held prior to such June 1 7 |
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| 158 | 158 | | plus 3.6 percent; or 8 |
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| 159 | 159 | | ‘‘(ii) 9.5 percent. 9 |
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| 160 | 160 | | ‘‘(2) Interest on a loan made under this section 10 |
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| 161 | 161 | | shall begin to accrue on the date the loan is dis-11 |
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| 162 | 162 | | bursed. 12 |
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| 163 | 163 | | ‘‘(3) The maximum— 13 |
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| 164 | 164 | | ‘‘(A) annual amount of loans under this 14 |
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| 165 | 165 | | section a dependent undergraduate student may 15 |
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| 166 | 166 | | borrow in any academic year (as defined in sec-16 |
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| 167 | 167 | | tion 481(a)(2)) or its equivalent shall be equal 17 |
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| 168 | 168 | | to $7,500; and 18 |
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| 169 | 169 | | ‘‘(B) aggregate amount of loans under this 19 |
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| 170 | 170 | | section a dependent undergraduate student may 20 |
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| 171 | 171 | | borrow shall be equal to $30,000. 21 |
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| 172 | 172 | | ‘‘(4) The maximum— 22 |
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| 173 | 173 | | ‘‘(A) annual amount of loans under this 23 |
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| 174 | 174 | | section an independent undergraduate student 24 |
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| 175 | 175 | | may borrow in any academic year (as defined in 25 |
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| 177 | 177 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
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| 178 | 178 | | •S 801 IS |
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| 179 | 179 | | section 481(a)(2)) or its equivalent shall be 1 |
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| 180 | 180 | | equal to $15,000; and 2 |
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| 181 | 181 | | ‘‘(B) aggregate amount of loans under this 3 |
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| 182 | 182 | | section an undergraduate independent student 4 |
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| 183 | 183 | | may borrow shall be equal to $60,000. 5 |
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| 184 | 184 | | ‘‘(5) The maximum— 6 |
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| 185 | 185 | | ‘‘(A) annual amount of loans under this 7 |
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| 186 | 186 | | section a graduate or professional student may 8 |
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| 187 | 187 | | borrow in any academic year (as defined in sec-9 |
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| 188 | 188 | | tion 481(a)(2)) or its equivalent shall be equal 10 |
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| 189 | 189 | | to $18,500; and 11 |
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| 190 | 190 | | ‘‘(B) aggregate amount of loans under this 12 |
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| 191 | 191 | | section a graduate or professional student may 13 |
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| 192 | 192 | | borrow shall be equal to $74,000. 14 |
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| 193 | 193 | | ‘‘(6) The only length of repayment— 15 |
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| 194 | 194 | | ‘‘(A) for a loan borrowed by an under-16 |
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| 195 | 195 | | graduate student shall be 15 years; and 17 |
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| 196 | 196 | | ‘‘(B) for a loan borrowed by a graduate or 18 |
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| 197 | 197 | | professional student shall be 25 years. 19 |
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| 198 | 198 | | ‘‘(7) Repayment on a loan made under this sec-20 |
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| 199 | 199 | | tion shall begin— 21 |
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| 200 | 200 | | ‘‘(A) after 125 percent of the normal time 22 |
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| 201 | 201 | | for completion of the program of study for 23 |
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| 202 | 202 | | which the borrower receives the loan under this 24 |
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| 203 | 203 | | section; or 25 |
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| 206 | 206 | | •S 801 IS |
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| 207 | 207 | | ‘‘(B) if the borrower withdraws from the 1 |
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| 208 | 208 | | program of study before the borrower completes 2 |
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| 209 | 209 | | the program, 6 months after the date the bor-3 |
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| 210 | 210 | | rower withdraws. 4 |
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| 211 | 211 | | ‘‘(8) The Secretary shall not repay or cancel 5 |
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| 212 | 212 | | any outstanding balance of principal or interest due 6 |
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| 213 | 213 | | on a Federal Direct simplification loan as part of a 7 |
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| 214 | 214 | | student loan forgiveness program, including such a 8 |
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| 215 | 215 | | program under section 455(m) and section 493C. 9 |
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| 216 | 216 | | ‘‘(c) A |
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| 217 | 217 | | UTHORIZATIONTOLIMITLOANAMOUNTS.— 10 |
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| 218 | 218 | | An institution of higher education that is required under 11 |
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| 219 | 219 | | State law to enroll all eligible applicants for an academic 12 |
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| 220 | 220 | | year may limit the amount of loans under this section that 13 |
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| 221 | 221 | | a student may borrow for such academic year to not more 14 |
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| 222 | 222 | | than the tuition and fees at such institution for such aca-15 |
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| 223 | 223 | | demic year. 16 |
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| 224 | 224 | | ‘‘(d) L |
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| 225 | 225 | | OANFEE.—The Secretary shall not charge the 17 |
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| 226 | 226 | | borrower of a loan made under this part an origination 18 |
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| 227 | 227 | | fee. 19 |
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| 228 | 228 | | ‘‘(e) R |
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| 229 | 229 | | EPAYMENT.—A borrower of a loan made under 20 |
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| 230 | 230 | | this section may accelerate without penalty repayment of 21 |
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| 231 | 231 | | the whole or any part of the loan.’’. 22 |
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| 232 | 232 | | SEC. 102. PHASING OUT LOAN FORGIVENESS. 23 |
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| 233 | 233 | | The Higher Education Act of 1965 (20 U.S.C. 1001 24 |
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| 234 | 234 | | et seq.) is amended— 25 |
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| 236 | 236 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
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| 237 | 237 | | •S 801 IS |
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| 238 | 238 | | (1) in section 455— 1 |
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| 239 | 239 | | (A) in subsection (d)(1), in the matter pre-2 |
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| 240 | 240 | | ceding subparagraph (A), by inserting ‘‘(except 3 |
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| 241 | 241 | | a Federal Direct simplification loan)’’ after 4 |
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| 242 | 242 | | ‘‘borrower of a loan made under this part’’; 5 |
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| 243 | 243 | | (B) in subsection (e), by adding at the end 6 |
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| 244 | 244 | | the following: 7 |
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| 245 | 245 | | ‘‘(9) F |
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| 246 | 246 | | EDERAL DIRECT SIMPLIFICATION 8 |
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| 247 | 247 | | LOANS.—Income contingent repayment shall not be 9 |
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| 248 | 248 | | available for a Federal Direct simplification loan.’’; 10 |
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| 249 | 249 | | and 11 |
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| 250 | 250 | | (C) in subsection (m), by adding at the 12 |
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| 251 | 251 | | end the following: 13 |
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| 252 | 252 | | ‘‘(5) E |
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| 253 | 253 | | LIMINATION OF LOAN FORGIVENESS .— 14 |
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| 254 | 254 | | ‘‘(A) I |
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| 255 | 255 | | N GENERAL.—Notwithstanding any 15 |
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| 256 | 256 | | other provision of this Act and subject to sub-16 |
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| 257 | 257 | | paragraph (B), with respect to any loan made 17 |
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| 258 | 258 | | on or after July 1, 2025, the Secretary may not 18 |
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| 259 | 259 | | cancel any outstanding balance of principal and 19 |
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| 260 | 260 | | interest due on the loan for the borrower of the 20 |
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| 261 | 261 | | loan pursuant to this subsection. 21 |
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| 262 | 262 | | ‘‘(B) L |
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| 263 | 263 | | OANS FOR CONTINUING PROGRAM 22 |
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| 264 | 264 | | OF STUDY.—In the case of a borrower whose 23 |
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| 265 | 265 | | first loan for a program of study is made prior 24 |
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| 266 | 266 | | to July 1, 2025, the Secretary may repay or 25 |
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| 268 | 268 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
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| 269 | 269 | | •S 801 IS |
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| 270 | 270 | | cancel any outstanding balance of principal and 1 |
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| 271 | 271 | | interest due on the subsequent loans for that 2 |
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| 272 | 272 | | borrower for the same program of study pursu-3 |
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| 273 | 273 | | ant to this subsection for— 4 |
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| 274 | 274 | | ‘‘(i) loans made during the time it 5 |
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| 275 | 275 | | takes to complete that program of study; 6 |
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| 276 | 276 | | or 7 |
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| 277 | 277 | | ‘‘(ii) loans made before July 1, 2028; 8 |
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| 278 | 278 | | whichever occurs earlier.’’; and 9 |
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| 279 | 279 | | (2) in section 493C, by adding at the end the 10 |
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| 280 | 280 | | following: 11 |
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| 281 | 281 | | ‘‘(f) E |
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| 282 | 282 | | LIMINATION OFLOANFORGIVENESS.— 12 |
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| 283 | 283 | | ‘‘(1) I |
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| 284 | 284 | | N GENERAL.—Notwithstanding any other 13 |
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| 285 | 285 | | provision of this Act and subject to paragraph (2), 14 |
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| 286 | 286 | | with respect to any loan made on or after July 1, 15 |
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| 287 | 287 | | 2025, the Secretary may not repay or cancel any 16 |
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| 288 | 288 | | outstanding balance of principal and interest due on 17 |
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| 289 | 289 | | the loan for the borrower of the loan pursuant to 18 |
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| 290 | 290 | | this section. 19 |
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| 291 | 291 | | ‘‘(2) L |
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| 292 | 292 | | OANS FOR CONTINUING PROGRAM OF 20 |
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| 293 | 293 | | STUDY.—In the case of a borrower whose first loan 21 |
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| 294 | 294 | | for a program of study is made prior to July 1, 22 |
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| 295 | 295 | | 2025, the Secretary may repay or cancel any out-23 |
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| 296 | 296 | | standing balance of principal and interest due on the 24 |
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| 298 | 298 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 |
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| 299 | 299 | | •S 801 IS |
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| 300 | 300 | | subsequent loans for that borrower for the same pro-1 |
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| 301 | 301 | | gram of study pursuant to this section for— 2 |
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| 302 | 302 | | ‘‘(A) loans made during the time it takes 3 |
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| 303 | 303 | | to complete that program of study; or 4 |
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| 304 | 304 | | ‘‘(B) loans made before July 1, 2028; 5 |
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| 305 | 305 | | whichever occurs earlier.’’. 6 |
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| 306 | 306 | | TITLE II—ACCREDITATION 7 |
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| 307 | 307 | | REFORM 8 |
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| 308 | 308 | | SEC. 201. ACCREDITATION REFORM. 9 |
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| 309 | 309 | | (a) D |
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| 310 | 310 | | EFINITION OFINSTITUTION OFHIGHEREDU-10 |
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| 311 | 311 | | CATION.—Section 102(a)(1) of the Higher Education Act 11 |
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| 312 | 312 | | of 1965 (20 U.S.C. 1002(a)(1)) is amended— 12 |
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| 313 | 313 | | (1) by redesignating subparagraphs (B) and 13 |
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| 314 | 314 | | (C) as subparagraphs (C) and (D), respectively; and 14 |
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| 315 | 315 | | (2) by inserting after subparagraph (A) the fol-15 |
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| 316 | 316 | | lowing: 16 |
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| 317 | 317 | | ‘‘(B) if accredited by an authorized accred-17 |
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| 318 | 318 | | itation authority in a State that has an alter-18 |
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| 319 | 319 | | native accreditation agreement with the Sec-19 |
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| 320 | 320 | | retary, as described in section 498C— 20 |
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| 321 | 321 | | ‘‘(i) an institution that provides post-21 |
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| 322 | 322 | | secondary education; 22 |
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| 323 | 323 | | ‘‘(ii) a postsecondary apprenticeship 23 |
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| 324 | 324 | | program; or 24 |
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| 326 | 326 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 |
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| 327 | 327 | | •S 801 IS |
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| 328 | 328 | | ‘‘(iii) a postsecondary education 1 |
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| 329 | 329 | | course or program provided by an institu-2 |
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| 330 | 330 | | tion of postsecondary education, a non-3 |
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| 331 | 331 | | profit organization, or a for-profit organi-4 |
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| 332 | 332 | | zation or business;’’. 5 |
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| 333 | 333 | | (b) S |
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| 334 | 334 | | TATEALTERNATIVEACCREDITATION.—Part H 6 |
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| 335 | 335 | | of title IV of the Higher Education Act of 1965 (20 U.S.C. 7 |
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| 336 | 336 | | 1099a et seq.) is amended by adding at the end the fol-8 |
|---|
| 337 | 337 | | lowing: 9 |
|---|
| 338 | 338 | | ‘‘Subpart 4—State Alternative Accreditation 10 |
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| 339 | 339 | | ‘‘SEC. 498C. STATE ALTERNATIVE ACCREDITATION. 11 |
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| 340 | 340 | | ‘‘(a) I |
|---|
| 341 | 341 | | NGENERAL.—Notwithstanding any other pro-12 |
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| 342 | 342 | | vision of law, a State may establish an alternative accredi-13 |
|---|
| 343 | 343 | | tation system for the purpose of establishing institutions 14 |
|---|
| 344 | 344 | | that provide postsecondary education and postsecondary 15 |
|---|
| 345 | 345 | | education courses or programs as eligible for funding 16 |
|---|
| 346 | 346 | | under title IV if the State submits a plan to the Secretary 17 |
|---|
| 347 | 347 | | for the establishment of the alternative accreditation sys-18 |
|---|
| 348 | 348 | | tem. Such institutions, courses, or programs may in-19 |
|---|
| 349 | 349 | | clude— 20 |
|---|
| 350 | 350 | | ‘‘(1) institutions that provide postsecondary 21 |
|---|
| 351 | 351 | | education that culminates in a certification, creden-22 |
|---|
| 352 | 352 | | tial, or degree; 23 |
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| 355 | 355 | | •S 801 IS |
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| 356 | 356 | | ‘‘(2) postsecondary apprenticeship programs 1 |
|---|
| 357 | 357 | | that culminate in a certification, credential, or de-2 |
|---|
| 358 | 358 | | gree; 3 |
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| 359 | 359 | | ‘‘(3) any other postsecondary education course 4 |
|---|
| 360 | 360 | | or program provided by an institution of postsec-5 |
|---|
| 361 | 361 | | ondary education, a nonprofit organization, or a for- 6 |
|---|
| 362 | 362 | | profit organization or business, that culminates in a 7 |
|---|
| 363 | 363 | | certification, credential, or degree; and 8 |
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| 364 | 364 | | ‘‘(4) any of the entities described in paragraphs 9 |
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| 365 | 365 | | (1) through (3) that do not award a postsecondary 10 |
|---|
| 366 | 366 | | certification, credential, or degree, provided that 11 |
|---|
| 367 | 367 | | such entity provides credit that will be accepted to-12 |
|---|
| 368 | 368 | | ward a postsecondary certification, credential, or de-13 |
|---|
| 369 | 369 | | gree at one or more of the entities described in para-14 |
|---|
| 370 | 370 | | graphs (1) through (3). 15 |
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| 371 | 371 | | ‘‘(b) A |
|---|
| 372 | 372 | | LTERNATIVE ACCREDITATION NOTIFICA-16 |
|---|
| 373 | 373 | | TION.—The alternative accreditation plan described in 17 |
|---|
| 374 | 374 | | subsection (a) shall include the following: 18 |
|---|
| 375 | 375 | | ‘‘(1) The State’s plan for designating one or 19 |
|---|
| 376 | 376 | | more authorized accrediting entities within the 20 |
|---|
| 377 | 377 | | State, such as the State Department of Education, 21 |
|---|
| 378 | 378 | | another State agency, an industry-specific accred-22 |
|---|
| 379 | 379 | | iting agency, or another entity, and an explanation 23 |
|---|
| 380 | 380 | | of the process through which the State will select 24 |
|---|
| 381 | 381 | | such authorized accrediting entities. 25 |
|---|
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| 383 | 383 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 14 |
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| 384 | 384 | | •S 801 IS |
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| 385 | 385 | | ‘‘(2) The standards or criteria that an institu-1 |
|---|
| 386 | 386 | | tion that provides postsecondary education and a 2 |
|---|
| 387 | 387 | | postsecondary education course or program must 3 |
|---|
| 388 | 388 | | meet in order to— 4 |
|---|
| 389 | 389 | | ‘‘(A) receive an initial accreditation as part 5 |
|---|
| 390 | 390 | | of the alternative accreditation system; and 6 |
|---|
| 391 | 391 | | ‘‘(B) maintain such accreditation. 7 |
|---|
| 392 | 392 | | ‘‘(3) A description of the appeals process 8 |
|---|
| 393 | 393 | | through which an institution that provides postsec-9 |
|---|
| 394 | 394 | | ondary education or a postsecondary education 10 |
|---|
| 395 | 395 | | course or program may appeal to an authorized ac-11 |
|---|
| 396 | 396 | | crediting entity if such institution, course, or pro-12 |
|---|
| 397 | 397 | | gram is denied accreditation under the State alter-13 |
|---|
| 398 | 398 | | native accreditation system. 14 |
|---|
| 399 | 399 | | ‘‘(4) Any State policy regarding public accessi-15 |
|---|
| 400 | 400 | | bility to certain information relating to institutions 16 |
|---|
| 401 | 401 | | that provide postsecondary education and postsec-17 |
|---|
| 402 | 402 | | ondary education courses and programs accredited 18 |
|---|
| 403 | 403 | | under the State alternative accreditation system, in-19 |
|---|
| 404 | 404 | | cluding— 20 |
|---|
| 405 | 405 | | ‘‘(A) the information described in sub-21 |
|---|
| 406 | 406 | | section (e)(1); and 22 |
|---|
| 407 | 407 | | ‘‘(B) information about the rates of job 23 |
|---|
| 408 | 408 | | placement for individuals who have graduated 24 |
|---|
| 409 | 409 | | from an institution or completed a course or 25 |
|---|
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| 411 | 411 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 15 |
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| 412 | 412 | | •S 801 IS |
|---|
| 413 | 413 | | program that is accredited under the State al-1 |
|---|
| 414 | 414 | | ternative accreditation system, if available. 2 |
|---|
| 415 | 415 | | ‘‘(5) An assurance by the State that under the 3 |
|---|
| 416 | 416 | | State alternative accreditation system, only institu-4 |
|---|
| 417 | 417 | | tions that provide postsecondary education and post-5 |
|---|
| 418 | 418 | | secondary education courses or programs that pro-6 |
|---|
| 419 | 419 | | vide a postsecondary certification, credential, or de-7 |
|---|
| 420 | 420 | | gree, or credits toward a postsecondary certification, 8 |
|---|
| 421 | 421 | | credential, or degree (as defined by the State in ac-9 |
|---|
| 422 | 422 | | cordance with paragraph (6)) will be accredited. 10 |
|---|
| 423 | 423 | | ‘‘(6) The State’s definition of a postsecondary 11 |
|---|
| 424 | 424 | | certification, credential, or degree, as such term ap-12 |
|---|
| 425 | 425 | | plies to the requirement described in paragraph (5). 13 |
|---|
| 426 | 426 | | ‘‘(7) A description of the agreements that the 14 |
|---|
| 427 | 427 | | State will enter into with institutions that provide 15 |
|---|
| 428 | 428 | | postsecondary education and postsecondary edu-16 |
|---|
| 429 | 429 | | cation courses or programs that are accredited 17 |
|---|
| 430 | 430 | | under the alternative accreditation system for pur-18 |
|---|
| 431 | 431 | | poses of accreditation regarding requirements for 19 |
|---|
| 432 | 432 | | learning outcomes or labor market outcomes, in lieu 20 |
|---|
| 433 | 433 | | of the requirements described under section 21 |
|---|
| 434 | 434 | | 496(a)(5). 22 |
|---|
| 435 | 435 | | ‘‘(8) A description of the agreements that the 23 |
|---|
| 436 | 436 | | State will enter into with institutions that provide 24 |
|---|
| 437 | 437 | | postsecondary education and postsecondary edu-25 |
|---|
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| 439 | 439 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 16 |
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| 440 | 440 | | •S 801 IS |
|---|
| 441 | 441 | | cation courses or programs that are accredited 1 |
|---|
| 442 | 442 | | under the alternative accreditation system for pur-2 |
|---|
| 443 | 443 | | poses of accreditation regarding requirements for in-3 |
|---|
| 444 | 444 | | structional time, in lieu of the requirements de-4 |
|---|
| 445 | 445 | | scribed under section 481(a)(2). 5 |
|---|
| 446 | 446 | | ‘‘(9) A description of the agreements that the 6 |
|---|
| 447 | 447 | | State will enter into with institutions that provide 7 |
|---|
| 448 | 448 | | postsecondary education and postsecondary edu-8 |
|---|
| 449 | 449 | | cation courses or programs that are accredited 9 |
|---|
| 450 | 450 | | under the alternative accreditation system regarding 10 |
|---|
| 451 | 451 | | requirements for credit hours or clock hours, or 11 |
|---|
| 452 | 452 | | other measures of student learning, in lieu of the re-12 |
|---|
| 453 | 453 | | quirements described under section 481(b). 13 |
|---|
| 454 | 454 | | ‘‘(c) R |
|---|
| 455 | 455 | | EVIEW ANDAPPROVAL.—Not later than 30 14 |
|---|
| 456 | 456 | | days after the Secretary receives a plan from a State re-15 |
|---|
| 457 | 457 | | garding an alternative accreditation system, the Secretary 16 |
|---|
| 458 | 458 | | shall submit to the State and Congress, and make publicly 17 |
|---|
| 459 | 459 | | available, a response to the State’s plan. The Secretary 18 |
|---|
| 460 | 460 | | shall approve the plan and allow the State to establish the 19 |
|---|
| 461 | 461 | | alternative accreditation system if the plan meets the re-20 |
|---|
| 462 | 462 | | quirements described in subsection (b). 21 |
|---|
| 463 | 463 | | ‘‘(d) T |
|---|
| 464 | 464 | | IMELIMIT.—Each plan approved under sub-22 |
|---|
| 465 | 465 | | section (c) shall allow a State to carry out an alternative 23 |
|---|
| 466 | 466 | | accreditation system in the State for a period of 5 years. 24 |
|---|
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| 468 | 468 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 17 |
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| 469 | 469 | | •S 801 IS |
|---|
| 470 | 470 | | ‘‘(e) REPORTINGREQUIREMENTS.—States that es-1 |
|---|
| 471 | 471 | | tablish an alternative accreditation system shall submit a 2 |
|---|
| 472 | 472 | | report to the Secretary every 3 years following the imple-3 |
|---|
| 473 | 473 | | mentation of the alternative accreditation system. The re-4 |
|---|
| 474 | 474 | | port shall include— 5 |
|---|
| 475 | 475 | | ‘‘(1) in the case of a postsecondary education 6 |
|---|
| 476 | 476 | | course or program that is accredited through the 7 |
|---|
| 477 | 477 | | State alternative accreditation system— 8 |
|---|
| 478 | 478 | | ‘‘(A) the number and percentage of stu-9 |
|---|
| 479 | 479 | | dents who successfully complete each such post-10 |
|---|
| 480 | 480 | | secondary education course or program; and 11 |
|---|
| 481 | 481 | | ‘‘(B) for postsecondary education courses 12 |
|---|
| 482 | 482 | | or programs that lead to a certification, creden-13 |
|---|
| 483 | 483 | | tial, or degree, the number of students in such 14 |
|---|
| 484 | 484 | | course or program; 15 |
|---|
| 485 | 485 | | ‘‘(2) in the case of an institution that provides 16 |
|---|
| 486 | 486 | | postsecondary education that is accredited through 17 |
|---|
| 487 | 487 | | the State alternative accreditation system— 18 |
|---|
| 488 | 488 | | ‘‘(A) the number and percentage of stu-19 |
|---|
| 489 | 489 | | dents who successfully obtain a postsecondary 20 |
|---|
| 490 | 490 | | certification, credential, or degree from such in-21 |
|---|
| 491 | 491 | | stitution; and 22 |
|---|
| 492 | 492 | | ‘‘(B) the number and percentage of stu-23 |
|---|
| 493 | 493 | | dents who do not successfully obtain a postsec-24 |
|---|
| 494 | 494 | | ondary certification, credential, or degree from 25 |
|---|
| 495 | 495 | | VerDate Sep 11 2014 04:49 Mar 14, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S801.IS S801 |
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| 496 | 496 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 18 |
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| 497 | 497 | | •S 801 IS |
|---|
| 498 | 498 | | such institution but do obtain credit from such 1 |
|---|
| 499 | 499 | | institution toward a postsecondary degree, cre-2 |
|---|
| 500 | 500 | | dential, or certification; and 3 |
|---|
| 501 | 501 | | ‘‘(3) a description of any requirements for 4 |
|---|
| 502 | 502 | | third-party verification of information contained in 5 |
|---|
| 503 | 503 | | the report.’’. 6 |
|---|
| 504 | 504 | | (c) T |
|---|
| 505 | 505 | | ITLEIV ELIGIBILITYREQUIREMENTS.—Part G 7 |
|---|
| 506 | 506 | | of title IV of the Higher Education Act of 1965 (20 U.S.C. 8 |
|---|
| 507 | 507 | | 1088 et seq.) is amended by adding at the end the fol-9 |
|---|
| 508 | 508 | | lowing: 10 |
|---|
| 509 | 509 | | ‘‘SEC. 494A. STATE ACCREDITED INSTITUTIONS, PRO-11 |
|---|
| 510 | 510 | | GRAMS, OR COURSES. 12 |
|---|
| 511 | 511 | | ‘‘Notwithstanding any other provision of law, an in-13 |
|---|
| 512 | 512 | | stitution, program, or course that is eligible for funds 14 |
|---|
| 513 | 513 | | under this title in accordance with section 102(a)(1)(B) 15 |
|---|
| 514 | 514 | | and meets the requirements of section 498C— 16 |
|---|
| 515 | 515 | | ‘‘(1) shall not be required to meet the require-17 |
|---|
| 516 | 516 | | ments of section 496; and 18 |
|---|
| 517 | 517 | | ‘‘(2) shall not be required to meet the require-19 |
|---|
| 518 | 518 | | ments described in subsections (a)(2) and (b) of sec-20 |
|---|
| 519 | 519 | | tion 481.’’. 21 |
|---|
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| 521 | 521 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 19 |
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| 522 | 522 | | •S 801 IS |
|---|
| 523 | 523 | | TITLE III—TRANSPARENCY IN 1 |
|---|
| 524 | 524 | | HIGHER EDUCATION 2 |
|---|
| 525 | 525 | | SEC. 301. TIME FOR TRANSPARENCY IN HIGHER EDU-3 |
|---|
| 526 | 526 | | CATION. 4 |
|---|
| 527 | 527 | | (a) I |
|---|
| 528 | 528 | | NGENERAL.—Title IV of the Higher Education 5 |
|---|
| 529 | 529 | | Act of 1965 (20 U.S.C. 1070 et seq.) is amended— 6 |
|---|
| 530 | 530 | | (1) in section 487(a), by adding at the end the 7 |
|---|
| 531 | 531 | | following: 8 |
|---|
| 532 | 532 | | ‘‘(30) The institution will publish information 9 |
|---|
| 533 | 533 | | in compliance with section 494B.’’; and 10 |
|---|
| 534 | 534 | | (2) in part G, by adding at the end the fol-11 |
|---|
| 535 | 535 | | lowing: 12 |
|---|
| 536 | 536 | | ‘‘SEC. 494B. INSTITUTIONAL PUBLICATION OF INFORMA-13 |
|---|
| 537 | 537 | | TION. 14 |
|---|
| 538 | 538 | | ‘‘(a) P |
|---|
| 539 | 539 | | UBLICATION OFINFORMATION.— 15 |
|---|
| 540 | 540 | | ‘‘(1) I |
|---|
| 541 | 541 | | N GENERAL.—Each institution of higher 16 |
|---|
| 542 | 542 | | education participating in a program under this title 17 |
|---|
| 543 | 543 | | shall publish on the institution’s website and in an 18 |
|---|
| 544 | 544 | | alternative format, on an annual basis, the informa-19 |
|---|
| 545 | 545 | | tion described in paragraphs (2) and (3). To the ex-20 |
|---|
| 546 | 546 | | tent that such data is available, an institution may 21 |
|---|
| 547 | 547 | | use data that the institution is already collecting in 22 |
|---|
| 548 | 548 | | accordance with other Federal requirements. 23 |
|---|
| 549 | 549 | | ‘‘(2) I |
|---|
| 550 | 550 | | NFORMATION.—Each institution of higher 24 |
|---|
| 551 | 551 | | education described in paragraph (1) shall publish, 25 |
|---|
| 552 | 552 | | VerDate Sep 11 2014 04:49 Mar 14, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S801.IS S801 |
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| 553 | 553 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 20 |
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| 554 | 554 | | •S 801 IS |
|---|
| 555 | 555 | | with respect to the institution as a whole and with 1 |
|---|
| 556 | 556 | | respect to each program of study offered by the in-2 |
|---|
| 557 | 557 | | stitution, the following information for the most re-3 |
|---|
| 558 | 558 | | cent fiscal year for which the information is avail-4 |
|---|
| 559 | 559 | | able, to the extent the information is available: 5 |
|---|
| 560 | 560 | | ‘‘(A) For each of the following, the per-6 |
|---|
| 561 | 561 | | centage and number of students enrolled at the 7 |
|---|
| 562 | 562 | | institution or in the program of study, as appli-8 |
|---|
| 563 | 563 | | cable, who receive the following: 9 |
|---|
| 564 | 564 | | ‘‘(i) Federal grant aid, including Fed-10 |
|---|
| 565 | 565 | | eral Pell Grants under subpart 1 of part 11 |
|---|
| 566 | 566 | | A, Federal Supplemental Educational Op-12 |
|---|
| 567 | 567 | | portunity Grants under subpart 3 of part 13 |
|---|
| 568 | 568 | | A, or any other Federal postsecondary edu-14 |
|---|
| 569 | 569 | | cation grant aid or subsidy. 15 |
|---|
| 570 | 570 | | ‘‘(ii) Federal student loans, including 16 |
|---|
| 571 | 571 | | Federal loans under part D. 17 |
|---|
| 572 | 572 | | ‘‘(iii) State grant aid. 18 |
|---|
| 573 | 573 | | ‘‘(iv) Institutional grants. 19 |
|---|
| 574 | 574 | | ‘‘(v) A student loan from a State. 20 |
|---|
| 575 | 575 | | ‘‘(B) Student body enrollment status, in-21 |
|---|
| 576 | 576 | | cluding as a— 22 |
|---|
| 577 | 577 | | ‘‘(i) first-time, full-time student; 23 |
|---|
| 578 | 578 | | ‘‘(ii) first-time, part-time student; 24 |
|---|
| 579 | 579 | | VerDate Sep 11 2014 04:49 Mar 14, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S801.IS S801 |
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| 580 | 580 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 21 |
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| 581 | 581 | | •S 801 IS |
|---|
| 582 | 582 | | ‘‘(iii) non-first-time, full-time student; 1 |
|---|
| 583 | 583 | | and 2 |
|---|
| 584 | 584 | | ‘‘(iv) non-first-time, part-time student. 3 |
|---|
| 585 | 585 | | ‘‘(C) Information about students that in-4 |
|---|
| 586 | 586 | | cludes the following: 5 |
|---|
| 587 | 587 | | ‘‘(i) The percentage of students who 6 |
|---|
| 588 | 588 | | do not complete the program of study the 7 |
|---|
| 589 | 589 | | student initially started upon enrollment. 8 |
|---|
| 590 | 590 | | ‘‘(ii) The percentage of students who 9 |
|---|
| 591 | 591 | | transfer. 10 |
|---|
| 592 | 592 | | ‘‘(iii) The percentage of students who 11 |
|---|
| 593 | 593 | | complete the program of study the student 12 |
|---|
| 594 | 594 | | initially started upon enrollment. 13 |
|---|
| 595 | 595 | | ‘‘(iv) The average length of time for a 14 |
|---|
| 596 | 596 | | student to complete the program of study. 15 |
|---|
| 597 | 597 | | ‘‘(v) The percentage of students who 16 |
|---|
| 598 | 598 | | continue on to higher levels of education. 17 |
|---|
| 599 | 599 | | ‘‘(vi) The percentage of former stu-18 |
|---|
| 600 | 600 | | dents who received financial aid who are 19 |
|---|
| 601 | 601 | | employed at 2, 4, and 6 years after grad-20 |
|---|
| 602 | 602 | | uating, disaggregated by program of study. 21 |
|---|
| 603 | 603 | | ‘‘(vii) The median earnings of former 22 |
|---|
| 604 | 604 | | students who earned a degree or credential 23 |
|---|
| 605 | 605 | | and received financial aid on the date that 24 |
|---|
| 606 | 606 | | is 5, 10, and 15 years after the date the 25 |
|---|
| 607 | 607 | | VerDate Sep 11 2014 04:49 Mar 14, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S801.IS S801 |
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| 608 | 608 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 22 |
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| 609 | 609 | | •S 801 IS |
|---|
| 610 | 610 | | students first enrolled in a program of 1 |
|---|
| 611 | 611 | | study at the institution, disaggregated by 2 |
|---|
| 612 | 612 | | program of study. 3 |
|---|
| 613 | 613 | | ‘‘(viii) The median earnings of former 4 |
|---|
| 614 | 614 | | students who received financial aid on the 5 |
|---|
| 615 | 615 | | date that is 5, 10, and 15 years after the 6 |
|---|
| 616 | 616 | | date the students first enrolled in a pro-7 |
|---|
| 617 | 617 | | gram of study at the institution, 8 |
|---|
| 618 | 618 | | disaggregated by program of study. 9 |
|---|
| 619 | 619 | | ‘‘(3) P |
|---|
| 620 | 620 | | UBLICATION OF DEFAULT AND NON -RE-10 |
|---|
| 621 | 621 | | PAYMENT RATES.—In addition to the information 11 |
|---|
| 622 | 622 | | described in paragraph (2), each institution of high-12 |
|---|
| 623 | 623 | | er education described in paragraph (1) shall pub-13 |
|---|
| 624 | 624 | | lish, with respect to the institution as a whole and 14 |
|---|
| 625 | 625 | | with respect to each program of study offered by the 15 |
|---|
| 626 | 626 | | institution, the following information for the most 16 |
|---|
| 627 | 627 | | recent fiscal year for which the information is avail-17 |
|---|
| 628 | 628 | | able: 18 |
|---|
| 629 | 629 | | ‘‘(A) The average amount of total Federal 19 |
|---|
| 630 | 630 | | student loan debt accrued upon graduation. 20 |
|---|
| 631 | 631 | | ‘‘(B) The average amount of total Federal 21 |
|---|
| 632 | 632 | | student loan debt accrued by students who 22 |
|---|
| 633 | 633 | | leave the institution without having graduated. 23 |
|---|
| 634 | 634 | | ‘‘(C) Federal student loan default rate. 24 |
|---|
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| 636 | 636 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 23 |
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| 637 | 637 | | •S 801 IS |
|---|
| 638 | 638 | | ‘‘(D) Federal student loan non-repayment 1 |
|---|
| 639 | 639 | | rate. 2 |
|---|
| 640 | 640 | | ‘‘(E) Default and non-repayment rate, in-3 |
|---|
| 641 | 641 | | cluding as a— 4 |
|---|
| 642 | 642 | | ‘‘(i) first-time, full-time student; 5 |
|---|
| 643 | 643 | | ‘‘(ii) first-time, part-time student; 6 |
|---|
| 644 | 644 | | ‘‘(iii) non-first-time, full-time student; 7 |
|---|
| 645 | 645 | | and 8 |
|---|
| 646 | 646 | | ‘‘(iv) non-first-time, part-time student. 9 |
|---|
| 647 | 647 | | ‘‘(F) Default and non-repayment rate, of— 10 |
|---|
| 648 | 648 | | ‘‘(i) students who complete a program 11 |
|---|
| 649 | 649 | | of study; 12 |
|---|
| 650 | 650 | | ‘‘(ii) students who transfer; and 13 |
|---|
| 651 | 651 | | ‘‘(iii) students who do not complete a 14 |
|---|
| 652 | 652 | | program of study. 15 |
|---|
| 653 | 653 | | ‘‘(b) P |
|---|
| 654 | 654 | | RIVACY.— 16 |
|---|
| 655 | 655 | | ‘‘(1) C |
|---|
| 656 | 656 | | OMPLIANCE WITH FERPA .—In carrying 17 |
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| 657 | 657 | | out this section, an institution of higher education 18 |
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| 658 | 658 | | and any personnel of the institution shall not share 19 |
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| 659 | 659 | | any personally identifiable information and shall act 20 |
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| 660 | 660 | | in accordance with section 444 of the General Edu-21 |
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| 661 | 661 | | cation Provisions Act (20 U.S.C. 1232g, commonly 22 |
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| 662 | 662 | | known as the ‘Family Educational Rights and Pri-23 |
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| 663 | 663 | | vacy Act of 1974’). 24 |
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| 666 | 666 | | •S 801 IS |
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| 667 | 667 | | ‘‘(2) PROHIBITION ON USE OF INFORMATION .— 1 |
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| 668 | 668 | | Information published pursuant to this section shall 2 |
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| 669 | 669 | | not be used by a Federal employee, agency, or offi-3 |
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| 670 | 670 | | cer, or an institution of higher education to take ac-4 |
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| 671 | 671 | | tion against an individual. 5 |
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| 672 | 672 | | ‘‘(3) P |
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| 673 | 673 | | ENALTIES.—The Secretary shall establish 6 |
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| 674 | 674 | | penalties for a violation of paragraph (1) or (2) that 7 |
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| 675 | 675 | | includes both a monetary fine and up to 5 years in 8 |
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| 676 | 676 | | prison. 9 |
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| 677 | 677 | | ‘‘(c) R |
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| 678 | 678 | | ULE OFCONSTRUCTION.—Nothing in this sec-10 |
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| 679 | 679 | | tion shall be construed to authorize or permit the Sec-11 |
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| 680 | 680 | | retary or any employee or contractor of the Department 12 |
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| 681 | 681 | | to mandate, direct, or control the selection of practices or 13 |
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| 682 | 682 | | curriculum by an institution of higher education.’’. 14 |
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| 683 | 683 | | (b) GAO R |
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| 684 | 684 | | EPORT.— 15 |
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| 685 | 685 | | (1) S |
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| 686 | 686 | | TUDY.—The Comptroller General of the 16 |
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| 687 | 687 | | United States shall conduct a study that compiles all 17 |
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| 688 | 688 | | the institutional publication of information pursuant 18 |
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| 689 | 689 | | to section 494B of the Higher Education Act of 19 |
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| 690 | 690 | | 1965, as added by subsection (a) of this section. 20 |
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| 691 | 691 | | (2) R |
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| 692 | 692 | | EPORT.—Not later than October 1 of the 21 |
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| 693 | 693 | | fourth fiscal year after the date of enactment of this 22 |
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| 694 | 694 | | Act, the Comptroller General of the United States 23 |
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| 695 | 695 | | shall submit a report containing the results of the 24 |
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| 698 | 698 | | •S 801 IS |
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| 699 | 699 | | study under paragraph (1) to the appropriate com-1 |
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| 700 | 700 | | mittees of Congress. 2 |
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| 701 | 701 | | TITLE IV—SCHOOL ACCOUNT-3 |
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| 702 | 702 | | ABILITY FOR STUDENT 4 |
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| 703 | 703 | | LOANS 5 |
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| 704 | 704 | | SEC. 401. SCHOOL ACCOUNTABILITY FOR STUDENT LOANS. 6 |
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| 705 | 705 | | (a) D |
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| 706 | 706 | | EFAULTRATEFINE.—Section 487 of the High-7 |
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| 707 | 707 | | er Education Act of 1965 (20 U.S.C. 1094), as amended 8 |
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| 708 | 708 | | by section 301, is further amended— 9 |
|---|
| 709 | 709 | | (1) in subsection (a), by adding at the end the 10 |
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| 710 | 710 | | following: 11 |
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| 711 | 711 | | ‘‘(31) The institution will pay a default rate 12 |
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| 712 | 712 | | fine that is determined pursuant to subsection (k).’’; 13 |
|---|
| 713 | 713 | | and 14 |
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| 714 | 714 | | (2) by adding at the end the following: 15 |
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| 715 | 715 | | ‘‘(k) D |
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| 716 | 716 | | EFAULTRATEFINE.— 16 |
|---|
| 717 | 717 | | ‘‘(1) I |
|---|
| 718 | 718 | | N GENERAL.—Each institution shall pay 17 |
|---|
| 719 | 719 | | to the Secretary an annual default rate fine in ac-18 |
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| 720 | 720 | | cordance with this subsection in an amount deter-19 |
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| 721 | 721 | | mined under paragraph (2). 20 |
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| 722 | 722 | | ‘‘(2) F |
|---|
| 723 | 723 | | INE.— 21 |
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| 724 | 724 | | ‘‘(A) I |
|---|
| 725 | 725 | | N GENERAL.—Each institution shall 22 |
|---|
| 726 | 726 | | pay a default rate fine for a fiscal year in an 23 |
|---|
| 727 | 727 | | amount that is equal to the applicable percent-24 |
|---|
| 728 | 728 | | age of outstanding loans. 25 |
|---|
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| 731 | 731 | | •S 801 IS |
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| 732 | 732 | | ‘‘(B) APPLICABLE PERCENTAGE .—In this 1 |
|---|
| 733 | 733 | | paragraph the term ‘applicable percentage’ 2 |
|---|
| 734 | 734 | | means a percentage equal to— 3 |
|---|
| 735 | 735 | | ‘‘(i) 15 percent; minus 4 |
|---|
| 736 | 736 | | ‘‘(ii) the average rate of total unem-5 |
|---|
| 737 | 737 | | ployment in the United States, as deter-6 |
|---|
| 738 | 738 | | mined by the Secretary of Labor. 7 |
|---|
| 739 | 739 | | ‘‘(C) O |
|---|
| 740 | 740 | | UTSTANDING LOANS.—In this para-8 |
|---|
| 741 | 741 | | graph the term ‘outstanding loans’ means the 9 |
|---|
| 742 | 742 | | total amount of loans issued to students for at-10 |
|---|
| 743 | 743 | | tendance at the institution, for which regular 11 |
|---|
| 744 | 744 | | on-time payments are not being made. 12 |
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| 745 | 745 | | ‘‘(D) R |
|---|
| 746 | 746 | | EGULAR ON-TIME PAYMENTS.—In 13 |
|---|
| 747 | 747 | | this paragraph the term ‘regular on-time pay-14 |
|---|
| 748 | 748 | | ments’ means payments that are, at a min-15 |
|---|
| 749 | 749 | | imum, equal to the fixed monthly amount nec-16 |
|---|
| 750 | 750 | | essary to pay off the total amount of Federal 17 |
|---|
| 751 | 751 | | student loans of the borrower within the allot-18 |
|---|
| 752 | 752 | | ted repayment time based on the borrower’s re-19 |
|---|
| 753 | 753 | | payment plan. 20 |
|---|
| 754 | 754 | | ‘‘(3) C |
|---|
| 755 | 755 | | REDIT FOR CERTAIN INSTITUTIONS .— 21 |
|---|
| 756 | 756 | | Each institution shall receive a $400 credit for a fis-22 |
|---|
| 757 | 757 | | cal year for each graduate of the institution who re-23 |
|---|
| 758 | 758 | | ceived a Federal Pell Grant while enrolled at the in-24 |
|---|
| 759 | 759 | | stitution during such fiscal year. 25 |
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| 762 | 762 | | •S 801 IS |
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| 763 | 763 | | ‘‘(4) FLEXIBILITY IN COUNSEL AND ADVICE .— 1 |
|---|
| 764 | 764 | | Notwithstanding any other provision of the Act, the 2 |
|---|
| 765 | 765 | | Secretary shall grant institutions of higher education 3 |
|---|
| 766 | 766 | | flexibility under this Act to counsel and advise stu-4 |
|---|
| 767 | 767 | | dents on Federal financial aid, including granting 5 |
|---|
| 768 | 768 | | flexibility for institutions to award less than the 6 |
|---|
| 769 | 769 | | maximum amount of Federal student aid for which 7 |
|---|
| 770 | 770 | | an individual is eligible if the cost of tuition, room, 8 |
|---|
| 771 | 771 | | and board at the institution is less than such max-9 |
|---|
| 772 | 772 | | imum amount.’’. 10 |
|---|
| 773 | 773 | | (b) F |
|---|
| 774 | 774 | | LEXIBILITY INCOUNSELING AND ADVICE.— 11 |
|---|
| 775 | 775 | | Section 485(l) of the Higher Education Act of 1965 (20 12 |
|---|
| 776 | 776 | | U.S.C. 1092(l)) is amended by adding at the end the fol-13 |
|---|
| 777 | 777 | | lowing: 14 |
|---|
| 778 | 778 | | ‘‘(3) F |
|---|
| 779 | 779 | | LEXIBILITY IN COUNSELING AND AD -15 |
|---|
| 780 | 780 | | VICE.—In addition to the entrance counseling under 16 |
|---|
| 781 | 781 | | paragraph (1), an eligible institution may require 17 |
|---|
| 782 | 782 | | any borrower, at or prior to the time of a disburse-18 |
|---|
| 783 | 783 | | ment to the borrower of a loan made under part D, 19 |
|---|
| 784 | 784 | | to receive the information described in paragraph 20 |
|---|
| 785 | 785 | | (2) with respect to such loan, or any other financial 21 |
|---|
| 786 | 786 | | counseling, including financial literacy counseling.’’. 22 |
|---|
| 787 | 787 | | Æ |
|---|
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