heaa discussion draft language 6.25.14

8/12/2019 HEAA Discussion Draft Language 6.25.14

1/783

O:\AEG\AEG14354.xml [file 1 of 4] Draft S.L.C.

113TH CONGRESS2D SESSION S.

llTo improve the Higher Education Act of 1965, and for other purposes.

IN THE SENATE OF THE UNITED STATES

llllllllll

Mr. HARKIN introduced the following bill; which was read twice and referred

to the Committee onllllllllll

A BILL

To improve the Higher Education Act of 1965, and for

other purposes.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled,2

SECTION 1. SHORT TITLE.3

This Act may be cited as the Higher Education Af-4

fordability Act.5

SEC. 2. TABLE OF CONTENTS.6

The table of contents for this Act is as follows:7

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. References.

Sec. 4. General effective date.

TITLE IGENERAL PROVISIONS

Sec. 101. 85-15 revenue source requirement for proprietary institutions.

Sec. 102. Definitions.


2/783

2


Sec. 103. Mandatory financial aid award letter.

Sec. 104. Code of conduct in affiliated consumer financial products or services.

Sec. 105. Restriction on marketing with federal educational assistance funds.

Sec. 106. Minimum standards for net price calculators.

Sec. 107. Benefits for borrowers who are members of the Armed Forces.

Sec. 108. Data improvements for college navigator.

Sec. 109. College scorecard.Sec. 110. In-state tuition rates for certain individuals.

Sec. 111. Responsibilities of FSA Ombudsman; addition of point of contact for

military families and homeless children.

Sec. 112. Responsibilities of covered institutions, institution-affiliated organiza-

tions, and lenders.

Sec. 113. Establishment of complaint resolution and tracking system.

Sec. 114. Proprietary education oversight coordination committee.

TITLE IIIMPROVING EDUCATOR PREPARATION

Sec. 201. Improving educator preparation.

TITLE IIIINSTITUTIONAL AID

Sec. 301. Rule of construction.

Sec. 302. Program purpose.

Sec. 303. Duration of grant.

Sec. 304. American Indian tribally controlled colleges and universities.

Sec. 305. Alaska Native and Native Hawaiian-serving institutions.

Sec. 306. Predominantly Black institutions.

Sec. 307. Native American-serving nontribal institutions.

Sec. 308. Asian American and Native American Pacific Islander-serving institu-

tions.

Sec. 309. Native American education tuition cost share.

Sec. 310. Grants to institutions.

Sec. 311. Professional or graduate institutions.

Sec. 312. Applications for assistance.

Sec. 313. Limitations on federal insurance for bonds issued by the designated

bonding authority.

TITLE IVSTUDENT ASSISTANCE

PART AGRANTS TO STUDENTS

SUBPART 1FEDERAL PELL GRANTS

Sec. 411. Year-Round Federal Pell Grants; extension of Federal Pell Grant in-

flation adjustments.

SUBPART 2EARLY AWARENESS OF COLLEGE FINANCING OPTIONS

Sec. 413. Early awareness of college financing options.

SUBPART 3AMERICAN DREAM GRANTS

Sec. 414. American dream grants.

PART BFEDERAL FAMILY EDUCATION LOAN PROGRAM

Sec. 421. Simplification of income-based repayment options for federally in-

sured student loans.


3/783

3


Sec. 422. Improvements to military loan deferment; clarification of scra protec-

tions; simplification of income-based repayment options.

Sec. 423. Simplification of income based repayment options for federal consoli-

dation loans.

Sec. 424. Reasonable collection costs and rehabilitation payments.

Sec. 425. FFEL loan forgiveness for certain American Indian educators.

Sec. 426. Improvements to credit reporting for federal student loans.Sec. 427. Reduced duplication in student loan servicing.

Sec. 428. Improved determination of cohort default rates; publication of default

prevention plan.

Sec. 429. Improved disability determinations.

Sec. 430. Treatment of borrowers falsely certified as eligible to borrow due to

identity theft.

PART CFEDERAL DIRECT LOAN PROGRAM

Sec. 451. Elimination of origination fees and other amendments to terms and

conditions of loans.

Sec. 452. Improved student loan servicing and debt collection practices.

Sec. 453. Federal Direct Loan forgiveness for certain American Indian edu-

cators.

PART DFEDERAL PERKINS LOANS

Sec. 461. Simplification of military deferment eligibility.

Sec. 462. Forgiveness of loans for eligible military service.

PART ENEED ANALYSIS

Sec. 471. Increased income protection allowance for dependent students.

Sec. 472. Increased income protection allowance for independent students with-

out dependents other than a spouse.

Sec. 473. Increased income protection allowance for independent students with

dependents other than a spouse.Sec. 474. Updated tables and amounts for income protection allowance.

Sec. 475. Prior prior year; definition of independent student.

PART FGENERAL PROVISIONS

Sec. 481. Definitions.

Sec. 482. Standard notification format for delinquent borrowers; explanation of

benefits of federal loans.

Sec. 483. Institutional financial aid award letter.

Sec. 484. Consumer testing.

Sec. 485. Loan repayment rate and speed-based repayment rate.

Sec. 486. Ability to benefit.

Sec. 487. Reasonable collection costs in state court judgments.

Sec. 488. Improved disclosures, counseling, and financial assistance information

for students.

Sec. 489. Improvements to National Student Loan Data System.

Sec. 490. Competency-based education demonstration program.

Sec. 491. Program participation agreements.

Sec. 492. Civil penalties.

Sec. 493. Income-based repayment.

Sec. 494. Extending the protections for student loans for active duty borrowers.

Sec. 495. Disbursement of credit balance.


4/783


5/783


6/783

6


section or other provision of the Higher Education Act of1

1965 (20 U.S.C. 1001 et seq.).2

SEC. 4. GENERAL EFFECTIVE DATE.3

Except as otherwise provided in this Act or the4

amendments made by this Act, this Act and the amend-5

ments made by this Act shall take effect on the date of6

enactment of this Act.7

TITLE IGENERAL PROVISIONS8

SEC. 101. 85-15 REVENUE SOURCE REQUIREMENT FOR PRO-9

PRIETARY INSTITUTIONS.10

Section 102(b) (20 U.S.C. 1002(b)) is amended11

(1) in paragraph (1)12

(A) in subparagraph (D), by striking13

and after the semicolon;14

(B) in subparagraph (E), by striking the15

period and inserting ; and; and16

(C) by adding at the end the following:17

(F) meets the requirements of paragraph18

(2).;19

(2) by redesignating paragraph (2) as para-20

graph (3); and21

(3) by inserting after paragraph (1) the fol-22

lowing:23

(2) REVENUE SOURCES.24


7/783

7


(A) IN GENERAL.In order to qualify as1

a proprietary institution of higher education2

under this subsection, an institution shall derive3

not less than 15 percent of the institutions rev-4

enues from sources other than Federal funds,5

as calculated in accordance with subparagraphs6

(B) and (C).7

(B) FEDERAL FUNDS.In this para-8

graph, the term Federal funds means any9

Federal financial assistance provided, under10

this Act or any other Federal law, through a11

grant, contract, subsidy, loan, guarantee, insur-12

ance, or other means to a proprietary institu-13

tion, including Federal financial assistance that14

is disbursed or delivered to an institution or on15

behalf of a student or to a student to be used16

to attend the institution, except that such term17

shall not include any monthly housing stipend18

provided under chapter 33 of title 38, United19

States Code.20

(C) CALCULATION OF REVENUE.In21

making calculations under subparagraph (A),22

an institution of higher education shall23

(i) use the cash basis of accounting;24


8/783


9/783

9


(iii) presume that any Federal funds1

that are disbursed or delivered to an insti-2

tution on behalf of a student or directly to3

a student will be used to pay the students4

tuition, fees, or other institutional charges,5

regardless of whether the institution cred-6

its such funds to the students account or7

pays such funds directly to the student, ex-8

cept to the extent that the students tui-9

tion, fees, or other institutional charges are10

satisfied by11

(I) grant funds provided by an12

outside source that13

(aa) has no affiliation with14

the institution; and15

(bb) shares no employees16

with the institution; and17

(II) institutional scholarships18

described in clause (v);19

(iv) include no loans made by an in-20

stitution of higher education as revenue to21

the school, except for payments made by22

students on such loans;23

(v) include a scholarship provided by24

the institution25


10/783

10


(I) only if the scholarship is in1

the form of monetary aid based upon2

the academic achievements or finan-3

cial need of students, disbursed to4

qualified student recipients during5

each fiscal year from an established6

restricted account; and7

(II) only to the extent that8

funds in that account represent des-9

ignated funds, or income earned on10

such funds, from an outside source11

that12

(aa) has no affiliation with13

the institution; and14

(bb) shares no employees15

with the institution; and16

(vi) exclude from revenues17

(I) the amount of funds the in-18

stitution received under part C of title19

IV, unless the institution used those20

funds to pay a students institutional21

charges;22

(II) the amount of funds the in-23

stitution received under subpart 4 of24

part A of title IV;25


11/783

11


(III) the amount of funds pro-1

vided by the institution as matching2

funds for any Federal program;3

(IV) the amount of Federal4

funds provided to the institution to5

pay institutional charges for a student6

that were refunded or returned; and7

(V) the amount charged for8

books, supplies, and equipment, unless9

the institution includes that amount10

as tuition, fees, or other institutional11

charges.12

(D) REPORT TO CONGRESS.Not later13

than July 1, 2015, and by July 1 of each suc-14

ceeding year, the Secretary shall submit to the15

authorizing committees a report that contains,16

for each proprietary institution of higher edu-17

cation that receives assistance under title IV18

and as provided in the audited financial state-19

ments submitted to the Secretary by each insti-20

tution pursuant to the requirements of section21

487(c)22

(i) the amount and percentage of23

such institutions revenues received from24

Federal funds; and25


12/783

12


(ii) the amount and percentage of1

such institutions revenues received from2

other sources..3

SEC. 102. DEFINITIONS.4

Section 103 (20 U.S.C. 1003) is amended5

(1) by redesignating paragraphs (4) through6

(9), (10) through (14), and (15) through (24), as7

paragraphs (5) through (10), (13) through (17), and8

(20) through (28), respectively;9


lowing:11

(4) DEFAULT MANIPULATION.The term de-12

fault manipulation means engaging in a device or13

practice, such as branching, consolidation of cam-14

puses, consolidation or manipulation of the identi-15

fication codes used by the Office of Postsecondary16

Education to designate campuses and institutions,17

change of ownership or control, serial forbearance,18

or any similar device or practice (as determined by19

the Secretary) when, but for the device or practice,20

one or more campuses of an institution of higher21

education would be at risk of cohort default rate22

sanctions under section 435 or student default risk23

sanctions under section 489A.;24


13/783

13


(3) by inserting after paragraph (10), as redes-1

ignated by paragraph (1), the following:2

(11) FEDERAL EDUCATIONAL ASSISTANCE3

FUNDS.The term Federal educational assistance4

funds means funds provided directly to an institu-5

tion or to a student attending such institution under6

any of the following provisions of law:7

(A) Title IV of the Higher Education Act8

of 1965 (20 U.S.C. 1070 et seq.).9

(B) Chapter 30, 31, 32, 33, 34, or 35 of10

title 38, United States Code.11

(C) Chapter 101, 105, 106A, 1606, 1607,12

or 1608 of title 10, United States Code.13

(D) Section 1784a, 2005, or 2007 of title14

10, United States Code.15

(E) Title I of the Workforce Investment16

Act of 1998 (29 U.S.C. 2801 et seq.).17

(F) The Adult Education and Family Lit-18

eracy Act (20 U.S.C. 9201 et seq.).19

(12) FOSTER CARE CHILDREN AND YOUTH.20

The term foster care children and youth21

(A) means children and youth whose care22

and placement is the responsibility of the State23

or Tribal agency that administers a State plan24

under part B or E of title IV of the Social Se-25


14/783

14


curity Act (42 U.S.C. 621 et seq. and 670 et1

seq.), without regard to whether foster care2

maintenance payments are made under section3

472 of such Act (42 U.S.C. 672) on behalf of4

the child or youth; and5

(B) includes individuals whose care and6

placement was the responsibility of the State or7

Tribal agency that administers a State plan8

under part B or E of title IV of the Social Se-9

curity Act (42 U.S.C. 621 et seq. and 670 et10

seq.) when they were age 13 or older but are11

no longer under the care and responsibility of12

the State or tribal agency.;13

(4) by inserting after paragraph (17), as redes-14

ignated by paragraph (1), the following:15

(18) RECRUITING AND MARKETING ACTIV-16

ITY.17

(A) IN GENERAL.Except as provided in18

subparagraph (B), the term recruiting and19

marketing activity means an activity that con-20

sists of the following:21

(i) Any advertising or promotion ac-22

tivity, including a paid announcement in23

newspapers, magazines, radio, television,24

billboards, electronic media, naming rights,25


15/783


16/783

16


formation obtained through websites1

established for such purpose; and2

(III) providing funds to a third3

party to create or maintain a website4

for the purpose of obtaining contact5

information regarding prospective stu-6

dents.7

(iii) Any other activity as the Sec-8

retary may determine, including paying for9

promotion or sponsorship of education or10

military-related associations.11

(B) EXCEPTION.An activity that is re-12

quired as a condition of receipt of funds by an13

institution under title IV, or under another ap-14

plicable Federal law, shall not be considered to15

be a recruiting and marketing activity under16

subparagraph (A).17

(19) PRIVATE EDUCATION LOAN.The term18

private education loan has the meaning given the19

term in section 140(a) of the Truth in Lending Act20

(15 U.S.C. 1650(a)).; and21

(5) in paragraph (28), as redesignated by para-22

graph (1)23


17/783


18/783

18


SEC. 104. CODE OF CONDUCT IN AFFILIATED CONSUMER1

FINANCIAL PRODUCTS OR SERVICES.2

Part B of title I (20 U.S.C. 1011 et seq.), as amend-3

ed by section 103, is further amended by adding at the4

end the following:5

SEC. 125. CODE OF CONDUCT IN AFFILIATED CONSUMER6

FINANCIAL PRODUCTS OR SERVICES.7

(a) DEFINITIONS.In this section:8

(1) AFFILIATED.9

(A) IN GENERAL.The term affiliated,10

when used with respect to a consumer financial11

product or service and an institution of higher12

education, means an association between such13

institution and product or service resulting14

from15

(i) the name, emblem, mascot, or16

logo of the institution being used with re-17

spect to such product or service; or18

(ii) some other word, picture, or19

symbol readily identified with the institu-20

tion in the marketing of the consumer fi-21

nancial product or service in any way that22

implies that the institution endorses the23

consumer financial product or service.24

(B) RULE OF CONSTRUCTION.Nothing25

in subparagraph (A) shall be construed to deem26


19/783


20/783

20


of the Consumer Financial Protection Act of 20101

(12 U.S.C. 5481).2

(4) FINANCIAL INSTITUTION.The term fi-3

nancial institution has the meaning given the term4

in section 140B of the Truth in Lending Act.5

(5) INSTITUTION OF HIGHER EDUCATION.6

The term institution of higher education means an7

institution of higher education as defined in section8

102.9

(b) CODE OF CONDUCT.Notwithstanding any10

other provision of law, no institution of higher education11

that is affiliated with a consumer financial product or12

service shall be eligible to receive funds or any other form13

of financial assistance under this Act, unless the institu-14

tion15

(1) develops a code of conduct with respect to16

affiliated consumer financial products or services17

with which associated individuals shall comply18

that19

(A) prohibits a conflict of interest with20

the responsibility of an associated individual21

with respect to such affiliated consumer finan-22

cial product or services;23

(B) requires each associated individual to24

act in the best interest of the students enrolled25


21/783

21


at the institution of higher education in car-1

rying out their duties; and2

(C) at a minimum, is aligned with the re-3

quirements and prohibitions described under4

subsections (c) through (g);5

(2) publishes such code of conduct promi-6

nently on the institutions website; and7

(3) administers and enforces such code by, at8

a minimum, requiring that all of the institutions as-9

sociated individuals be annually informed of the pro-10

visions of the code of conduct.11

(c) BAN ON REVENUE-SHARINGARRANGEMENTS.12

(1) PROHIBITION.An institution of higher13

education that is affiliated with a consumer financial14

product or service shall not enter into any revenue-15

sharing arrangement with the financial institution.16

(2) DEFINITION.In this subsection, the term17

revenue-sharing arrangement18

(A) means an arrangement between an19

institution of higher education and a financial20

institution under which21

(i) the financial institution provides22

or issues a consumer financial product or23

service to students attending the institu-24

tion of higher education;25


22/783

22


(ii) the institution of higher edu-1

cation recommends, promotes, sponsors, or2

otherwise endorses the financial institution,3

or the consumer financial products or serv-4

ices offered by the financial institution;5

and6

(iii) the financial institution pays a7

fee or provides other material benefits, in-8

cluding revenue or profit sharing, to the9

institution of higher education in connec-10

tion with the consumer financial products11

or services provided to students of the in-12

stitution of higher education; and13

(B) does not include an arrangement14

solely based on a financial institution paying a15

fair market price to an institution of higher16

education for the institution of higher education17

to advertise or market the financial institution18

to the general public.19

(d) GIFT BAN.20

(1) PROHIBITION.No associated individual21

of an institution of higher education shall solicit or22

accept any gift from a financial institution that has23

a consumer financial product or service with which24

the institution is affiliated.25


23/783

23


(2) DEFINITION OF GIFT.1

(A) IN GENERAL.In this subsection, the2

term gift means any gratuity, favor, discount,3

entertainment, hospitality, loan, or other item4

having a monetary value of more than a de5

minimis amount. The term includes a gift of6

services, transportation, lodging, or meals,7

whether provided in kind, by purchase of a tick-8

et, payment in advance, or reimbursement after9

the expense has been incurred.10

(B) EXCEPTIONS.The term gift shall11

not include any of the following:12

(i) Standard material, activities, or13

programs on issues related to a consumer14

financial product or service or financial lit-15

eracy, such as a brochure, a workshop, or16

training. Such material, training, or pro-17

gram shall not promote a product or serv-18

ice of any specific financial institution.19

(ii) Food, refreshments, training, or20

informational material furnished to an as-21

sociated individual as an integral part of a22

training session that is designed to im-23

prove the service of a financial institution24

to the institution of higher education, if25


24/783

24


such training contributes to the profes-1

sional development of the associated indi-2

vidual.3

(iii) Favorable terms, conditions, and4

borrower benefits on a consumer financial5

product or service provided to all employ-6

ees of the institution of higher education if7

such terms, conditions, or benefits are8

comparable to those provided to all stu-9

dents of the institution.10

(iv) Philanthropic contributions to11

an institution of higher education from a12

financial institution that are unrelated to13

the affiliated consumer financial product or14

service or the financial institution in gen-15

eral or any contribution from the financial16

institution that is not made in exchange17

for any advantage related to the financial18

institution.19

(C) RULE FOR GIFTS TO FAMILY MEM-20

BERS.For purposes of this subsection, a gift21

to a family member of an associated individual22

of an institution of higher education shall be23

considered a gift to the associated individual24

if25


25/783

25


(i) the gift is given with the knowl-1

edge and acquiescence of the associated in-2

dividual; and3

(ii) the associated individual has rea-4

son to believe the gift was given because of5

the official position of the associated indi-6

vidual.7

(e) CONTRACTING ARRANGEMENTS PROHIBITED.8

(1) PROHIBITION.No associated individual9

of an institution of higher education shall accept10

from a financial institution that has a consumer fi-11

nancial product or service with which the institution12

is affiliated a fee, payment, or other financial benefit13

(including the opportunity to purchase stock) as14

compensation for any type of consulting arrange-15

ment or other contract to provide services to the fi-16

nancial institution or on behalf of the financial insti-17

tution.18

(2) RULE OF CONSTRUCTION.Nothing in19

this subsection shall be construed as prohibiting the20

conduct of an individual who is not an associated in-21

dividual.22

(f) BAN ON STAFFINGASSISTANCE.An institution23

of higher education shall not request or accept from a fi-24

nancial institution with which the institution has an affili-25


26/783

26


ated consumer financial product or service any assistance1

with call center staffing, financial aid office staffing, or2

any other office or department of the institution of higher3

education.4

(g) ADVISORY BOARD COMPENSATION.Any asso-5

ciated individual of an institution of higher education who6

serves on an advisory board, commission, or group estab-7

lished by a financial institution that has a consumer finan-8

cial product or service with which the institution is affili-9

ated shall be prohibited from receiving anything of value10

from the financial institution, except that the individual11

may be reimbursed for reasonable expenses incurred in12

serving on such advisory board, commission, or group..13

SEC. 105. RESTRICTION ON MARKETING WITH FEDERAL14

EDUCATIONAL ASSISTANCE FUNDS.15

(a) TRANSFER.Section 119 of the Higher Edu-16

cation Opportunity Act (20 U.S.C. 1011m) is amended17

(1) by transferring such section so as to follow18

section 125 of the Higher Education Act of 1965, as19

added by section 105; and20

(2) by redesignating such section as section 12621

of the Higher Education Act of 1965.22

(b) AMENDMENTS.Section 126, as transferred and23

redesignated by subsection (a), is further amended24


27/783

27


(1) in the section heading, by inserting AND1

RESTRICTIONS ON SOURCES OF FUNDS FOR2

RECRUITING AND MARKETING ACTIVITIES3

after FUNDS;4

(2) in subsection (d), by striking subsections5

(a) through (c) and inserting subsections (a), (b),6

(c), and (e);7

(3) by redesignating subsection (e) as sub-8

section (f);9

(4) by inserting after subsection (d) the fol-10

lowing:11

(e) RESTRICTIONS ON SOURCES OF FUNDS FOR RE-12

CRUITING AND MARKETINGACTIVITIES.13

(1) IN GENERAL.An institution of higher14

education, or other postsecondary educational insti-15

tution, may not use revenues derived from Federal16

educational assistance funds for recruiting or mar-17

keting activities.18

(2) RULE OF CONSTRUCTION.Nothing in19

this section shall be construed as a limitation on the20

use by an institution of revenues derived from21

sources other than Federal educational assistance22

funds.23

(3) REPORTING.Each institution of higher24

education, or other postsecondary educational insti-25


28/783

28


tution, that receives revenues derived from Federal1

educational assistance funds shall report annually to2

the Secretary and to Congress the institutions ex-3

penditures on advertising, marketing, and recruiting,4

and shall include in such report a verification from5

an independent auditor that the institution of higher6

education is in compliance with the requirement7

under paragraph (1).;8

(5) by striking the Higher Education Act of9

1965 (20 U.S.C. 1001 et seq.) each place the term10

appears and inserting this Act; and11

(6) by striking Secretary of Education each12

place the term appears and inserting Secretary.13

SEC. 106. MINIMUM STANDARDS FOR NET PRICE CALCULA-14

TORS.15

Section 132(h) (20 U.S.C. 1015a(h)) is amended16


graph (6);18

(2) in paragraph (2), by inserting before the pe-19

riod , and, not later than 1 year after the date of20

enactment of the Higher Education Affordability21

Act, shall meet the requirements of paragraph22

(4)(B);23

(3) in paragraph (3), by inserting after the first24

sentence the following: Not later than 1 year after25


29/783

29


the date of enactment of the Higher Education Af-1

fordability Act, such calculator shall meet the re-2

quirements of paragraph (4).;3


lowing:5

(4) MINIMUM REQUIREMENTS FOR NET PRICE6

CALCULATORS.Not later than 1 year after the date7

of enactment of the Higher Education Affordability8

Act, a net price calculator for an institution of high-9

er education shall, at a minimum, meet the following10

requirements:11

(A) The link for the calculator12

(i) is clearly labeled as a net price13

calculator and is prominently and clearly14

posted in locations on the institutions15

website where information on costs and aid16

is provided; and17

(ii) may also be included on the in-18

stitutions compliance webpage, which con-19

tains information relating to compliance20

with Federal, State, and local laws.21

(B) The results screen for the calculator22

specifies the following information:23

(i) The net price (as calculated24

under subsection (h)(2)) for the individual25


30/783

30


student, which is the most visually promi-1

nent figure on the results screen.2

(ii) Cost of attendance for the insti-3

tution, including4

(I) tuition and fees;5

(II) the average annual cost of6

room and board for the institution for7

a first-time, full-time undergraduate8

student enrolled in the institution;9

(III) the average annual cost of10

books and supplies for a first-time,11

full-time undergraduate student en-12

rolled in the institution; and13

(IV) the estimated cost of other14

expenses (including personal expenses15

and transportation) for a first-time,16

full-time undergraduate student en-17

rolled in the institution.18

(iii) Estimated median amount of19

need-based grant aid and merit-based20

grant aid, from Federal, State, and institu-21

tional sources, that students receive at the22

institution.23

(iv) Percentage of the first-time, full-24

time undergraduate students enrolled in25


31/783

31


the institution that received any type of1

grant aid described in clause (iii).2

(v) The disclaimer described in para-3

graph (6).4

(vi) In the case of a calculator5

that6

(I) includes questions to esti-7

mate a students (or prospective stu-8

dents) eligibility for veterans edu-9

cation benefits (as defined in section10

480) or educational benefits for active11

duty service members, such benefits12

are displayed on the results screen in13

a manner that clearly distinguishes14

them from the grant aid described in15

clause (iii); or16

(II) does not include questions17

to estimate eligibility for the benefits18

described in subclause (I), the results19

screen indicates that certain students20

(or prospective students) may qualify21

for such benefits and includes a link22

to official Federal information about23

such benefits.24


32/783


33/783


34/783

34


(7) UNIVERSAL NET PRICE CALCULATOR.1

Not later than 2 years after the date of enactment2

of the Higher Education Affordability Act, the Sec-3

retary shall develop a universal net price calculator4

that5

(A) enables users to answer one set of6

questions and receive net prices for any institu-7

tion that is required to have a net price calcu-8

lator under this subsection;9

(B) provides the information required10

under subparagraphs (B) and (C) of paragraph11

(4) for each institution for which a net price is12

being sought;13

(C) is developed in consultation with the14

heads of relevant Federal agencies;15

(D) before being finalized and publicly re-16

leased, is tested in accordance with the con-17

sumer testing process described in section18

483C; and19

(E) complies with the privacy require-20

ments described in paragraph (5).21

(8) REPORT FROM SECRETARY.Not later22

than 2 years after the date of enactment of the23

Higher Education Affordability Act, the Secretary24

shall submit a report to Congress on25


35/783


36/783


37/783

37


(ii) is easily accessible through the1

Internet website described in subsection2

(e)(3).3

(B) IMPLEMENTATION.Not later than 14

year after the date of enactment of the Higher5

Education Affordability Act, the Secretary shall6

make publicly available the revised and updated7

Internet website described in subparagraph (A).8

(C) DISSEMINATION.The Secretary, in9

coordination with the Secretary of Defense and10

the Secretary of Veterans Affairs, shall make11

the availability of the Internet website described12

in subparagraph (A) widely known to members13

of the Armed Forces (including members of the14

National Guard and Reserves), veterans, the15

dependents of such members or veterans,16

States, institutions of higher education, and the17

general public.18

(D) DEFINITION.In this paragraph, the19

term Federal and State student financial as-20

sistance means any grant, loan, work assist-21

ance, tuition assistance, scholarship, fellowship,22

or other form of financial aid for pursuing a23

postsecondary education that is24


38/783

38


(i) administered, sponsored, or sup-1

ported by the Department of Education,2

the Department of Defense, the Depart-3

ment of Veterans Affairs, or a State; and4

(ii) available to members of the5

Armed Forces (including members of the6

National Guard and Reserves), veterans,7

or the dependents of such members or vet-8

erans.9

(2) ENROLLMENT FORM.10

(A) IN GENERAL.The Secretary, in con-11

sultation with the Director of the Bureau of12

Consumer Financial Protection, the Secretary13

of Defense, and the heads of any other relevant14

Federal agencies, shall create a simplified dis-15

closure and enrollment form for borrowers who16

are performing eligible military service (as de-17

fined in section 481(d)).18

(B) CONTENTS.The disclosure and en-19

rollment form described in subparagraph (A)20

shall include21

(i) information about the benefits22

and protections under title IV and under23

the Servicemembers Civil Relief Act (5024

U.S.C. App. 501 et seq.) that are available25


39/783

39


to such borrower because the borrower is1

performing eligible military service; and2

(ii) an opportunity for the borrower,3

by completing the enrollment form, to in-4

voke certain protections, activate certain5

benefits, and enroll in certain programs6

that may be available to that borrower,7

which shall include the opportunity 8

(I) to invoke applicable protec-9

tions that are available under the10

Servicemembers Civil Relief Act (5011

U.S.C. App. 501 et seq.), as such pro-12

tections relate to Federal student13

loans under title IV; and14

(II) to activate or enroll in any15

other applicable benefits that are16

available to such borrower under this17

Act because the borrower is per-18

forming eligible military service, such19

as eligibility for a deferment or eligi-20

bility for a period during which inter-21

est shall not accrue.22

(C) IMPLEMENTATION.Not later than23

365 days after the date of the enactment of the24

Higher Education Affordability Act, the Sec-25


40/783

40


retary shall make available to eligible institu-1

tions, eligible lenders, and personnel at the De-2

partment of Defense and other Federal agencies3

that provide services to borrowers who are4

members of the Armed Forces or the depend-5

ents of such members, the disclosure and enroll-6

ment form described in subparagraph (A).7

(D) NOTICE REQUIREMENTS.8

(i) SCRA INTEREST RATE LIMITA-9

TION.The completion of the disclosure10

and enrollment form created pursuant to11

subparagraph (A) by the borrower of a12

loan made, insured, or guaranteed under13

part B or part D of title IV who is other-14

wise subject to the interest rate limitation15

in subsection (a) of section 207 of the16

Servicemembers Civil Relief Act (50 U.S.C.17

App. 527(a)) and submittal of such form18

to the Secretary shall be considered, for19

purposes of such section, provision to the20

creditor of written notice as described in21

subsection (b)(1) of such section.22

(ii) FFEL LENDERS.The Sec-23

retary shall provide each such disclosure24

and enrollment form completed and sub-25


41/783


42/783

42


(1) by redesignating sections 133 through 1371

as sections 134 through 138, respectively; and2

(2) by inserting after section 132 the following:3

SEC. 133. COLLEGE SCORECARD.4


(1) COLLEGE SCORECARD.The term College6

Scorecard refers to the College Scorecard website7

developed and operated by the Department under8

subsection (b) and any successor website.9

(2) INSTITUTION OF HIGHER EDUCATION.10

The term institution of higher education means an11

institution of higher education, as defined in section12

102, that awards a degree or certificate.13

(3) RECENT GRADUATE.The term recent14

graduate, when used in reference to a graduate of15

an institution of higher education, shall mean a stu-16

dent who completed a course of study and earned a17

certificate or degree at the institution in any of the18

6 most recent preceding years for which data are19

available.20

(b) IN GENERAL.The Secretary shall develop and21

make publicly available a College Scorecard website to pro-22

vide students and families with information regarding23

higher education affordability and value for each institu-24

tion of higher education that receives funds under title IV.25


43/783

43


(c) STANDARD FORMAT.1

(1) IN GENERAL.The Secretary, in consulta-2

tion with the heads of relevant Federal agencies,3

shall develop a standard format to be used by the4

Secretary for public disclosure of information related5

to higher education affordability and value, including6

the information described in subsections (d) and (e).7

(2) RECOMMENDATIONS FROM OTHER8

GROUPS.The standard format developed under9

paragraph (1) shall be based on recommendations10

from representatives of secondary school students11

and postsecondary students, the families of sec-12

ondary school and postsecondary students, institu-13

tions of higher education, secondary school and post-14

secondary education counselors, and nonprofit con-15

sumer groups.16

(3) SOURCES OF DATA.The data used in the17

standard format shall be data that are available to18

the Secretary through other sources and reports.19

(d) KEY REQUIRED CONTENTS.The standard for-20

mat developed under subsection (c) shall include, in a con-21

sumer-friendly manner that is simple and understandable,22

the following information for each degree- and certificate-23

granting institution of higher education that receives24


44/783

44


funds under title IV for the most recent year for which1

data are available:2

(1) NET PRICE INFORMATION.3

(A) The average net price paid by en-4

rolled students to attend the institution, cal-5

culated in a manner consistent with section6

132(a)(3), for the subgroups of students at the7

institution in each of the following annual fam-8

ily income categories, and the percentage of9

students in each category:10

(i) $0 to $30,000.11

(ii) $30,001 to $48,000.12

(iii) $48,001 to $75,000.13

(iv) $75,001 to $110,000.14

(v) $110,001 and more.15

(B) A visual representation that provides16

context for the information conveyed under sub-17

paragraph (A), including how the net price in-18

formation compares to other institutions.19

(C) The Commissioner of the National20

Center for Education Statistics may periodically21

adjust the annual family income categories de-22

scribed under subparagraph (A).23

(2) COMPLETION AND TRANSFER DATA.24


45/783

45


(A) For each institution, the percentages1

of certificate- or degree-seeking undergraduate2

students enrolled at the institution who obtain3

a certificate or degree within4

(i) 100 percent of the normal time5

for completion of, or graduation from, the6

students educational program; and7

(ii) 150 percent of the normal time8


students educational program.10

(B) For each institution, the percentages11

of certificate- or degree-seeking undergraduate12

students enrolled at the institution13

(i) who persist and remain enrolled14

in the institution from academic term to15

academic term; and16

(ii) who persist and remain enrolled17

in the institution from year to year.18

(C) For each 2-year institution that pri-19

marily awards associates degrees, the percent-20

ages of students who have transferred to a 4-21

year institution of higher education within22

(i) 100 percent of the normal time23


students initial educational program; and25


46/783

46


(ii) 150 percent of the normal time1


students initial educational program.3

(D) For each institution, a visual rep-4

resentation that provides context for the infor-5

mation conveyed under subparagraphs (A) and6

(B) and, as applicable, subparagraph (C), in-7

cluding how the completion, transfer, and per-8

sistence rates compare to other institutions.9

(3) LOAN INFORMATION.10

(A) The percentage of students at the in-11

stitution who have completed their certificate or12

degree program and who borrowed 1 or more13

loans under part B, D, or E of title IV, or pri-14

vate education loans, while attending the insti-15

tution.16

(B) The institutions speed-based loan re-17

payment rate, as calculated under section18

483D(c) and the comparison information de-19

scribed in section 483D(c)(4).20

(C) A visual representation that provides21

context for the information conveyed under this22

paragraph, including how the information de-23

scribed in subparagraphs (A) and (B) compares24

to other institutions.25


47/783

47


(4) DEBT INFORMATION.1

(A) The mean and median student loan2

debt, including private education loan debt, in-3

curred by students who have earned a certifi-4

cate or degree from the institution and who5

borrowed student loans in the course of obtain-6

ing such certificate or degree in the most recent7

year for which data are available.8



paragraph (A), including how the debt informa-11

tion compares to other institutions.12

(5) REPAYMENT INFORMATION.13

(A) The expected monthly repayment14

amounts for the mean and median student loan15

debt described in paragraph (4), under a stand-16

ard repayment plan described in section17

455(d)(1)(A) based on a 10-year period.18



paragraph (A), including how the repayment in-21

formation compares to other similar institu-22

tions.23

(6) TYPE OF INSTITUTION.A specification as24

to25


48/783

48


(A) whether the institution of higher edu-1

cation is a public, private nonprofit, or private2

for-profit institution; and3

(B) whether the institution is a 4-year, 2-4

year, or less than 2-year institution and which5

degree type the institution primarily awards.6

(7) ADDITIONAL INFORMATION.Any other7

information the Secretary, in consultation with the8

heads of relevant Federal agencies, determines nec-9

essary so that students and parents can make in-10

formed decisions regarding postsecondary education.11

(e) COLLEGE TUITION TRANSPARENCY INFORMA-12

TION.The standard format developed for institutions of13

higher education under subsection (c) shall14

(1) prominently and clearly identify if the in-15

stitution has been identified under section 132(c)(1),16

and the reasons for each institutions identification;17

and18

(2) provide a link to the webpage of the net19

price calculator of the institution, as required under20

section 132(h)(3).21

(f) ADDITIONAL REQUIREMENTS.The standard22

format developed by the Secretary under subsection (c)23

shall24


49/783

49


(1) use, for the terms described in subsection1

(d), standard definitions and names that are devel-2

oped by the Secretary in consultation with the heads3

of relevant Federal agencies, representatives of insti-4

tutions of higher education, nonprofit consumer5

groups, secondary and postsecondary students, and6

secondary school and higher education guidance7

counselors; and8

(2) use standard formatting and design that9

the Secretary, in consultation with the heads of rel-10

evant Federal agencies, representatives of institu-11

tions of higher education, nonprofit consumer12

groups, secondary school students, postsecondary13

students, and secondary school and higher education14

guidance counselors determine are clear, understand-15

able, and suitable for secondary school students.16

(g) CONSUMER TESTING.The Secretary shall17

carry out consumer testing for the College Scorecard in18

accordance with section 483C.19

(h) FINAL STANDARD FORMAT AND AVAILABILITY20

OF COLLEGE SCORECARD.Not later than 60 days after21

the conclusion of the consumer testing required under sub-22

section (h), the Secretary shall23

(1) submit to the authorizing committees the24

final standard format for the College Scorecard and25


50/783

50


a report describing the results of consumer testing,1

including whether the Secretary added any addi-2

tional items pursuant to subsection (d)(8); and3

(2) make the final College Scorecard, includ-4

ing all information required for the standard format5

under subsections (d) and (e) for all institutions of6

higher education that receive funds until title IV,7

publicly available through a College Scorecard8

website and through a link on the following other9

websites:10

(A) The College Navigator website de-11

scribed under section 132(i).12

(B) The website of the College Afford-13

ability and Transparency Center.14

(C) The website of the Office of Federal15

Student Aid.16

(i) DISTRIBUTION OF COLLEGE SCORECARD.Each17

institution of higher education receiving funds under title18

IV shall19

(1) make the most recent College Scorecard20

for the institution publicly available on the website21

of the institution;22

(2) distribute the most recent College Score-23

card for the institution to prospective students and24

accepted students of the institution25


51/783

51


(A) in the same format in which the insti-1

tution communicates with prospective and ac-2

cepted students about applying to and enrolling3

in the institution; and4

(B) in a manner that allows for the stu-5

dent or the family of the student to take such6

information into account before applying or en-7

rolling, without regard to whether the informa-8

tion was requested; and9

(3) in the case of an institution with high stu-10

dent default risk that is required under section11

487(a)(32) to provide a student accepted for enroll-12

ment with a waiting period of not less than 2 weeks13

to consider postsecondary options, disclose to the14

student the College Scorecard of the institution at or15

before the start of such waiting period.16

(j) PUBLICAWARENESS CAMPAIGN.17

(1) IN GENERAL.Not later than 180 days18

after the date of enactment of the Higher Education19

Affordability Act, the Secretary shall coordinate,20

with entities such as States, institutions of higher21

education, State educational agencies, local edu-22

cational agencies, secondary schools, and other agen-23

cies, and organizations involved in access to higher24

education and student financial aid, and implement25


52/783

52


a public awareness campaign in order to increase1

national awareness of the College Scorecard.2

(2) CONTENT AND IMPLEMENTATION OF CAM-3

PAIGN.The public awareness campaign carried out4

under this subsection shall disseminate information5

regarding the functions and methods of accessing6

the College Scorecard, and shall be implemented, to7

the extent practicable, using a variety of media, in-8

cluding print, television, radio, and the Internet.9

(3) USE OF RESEARCH-BASED STRATEGIES.10

The Secretary shall design and implement the public11

awareness campaign carried out under this sub-12

section based on relevant independent research and13

information on dissemination strategies found suit-14

able for students in secondary school and postsec-15

ondary education...16

SEC. 110. IN-STATE TUITION RATES FOR CERTAIN INDIVID-17

UALS.18

Section 135 (20 U.S.C. 1015d) is amended to read19

as follows:20

SEC. 135. IN-STATE TUITION RATES FOR CERTAIN INDIVID-21

UALS.22

(a) MEMBERS OF THEARMED FORCES ON ACTIVE23

DUTY.24


53/783

53


(1) REQUIREMENT.In the case of a member1

of the Armed Forces who is on active duty for a pe-2

riod of more than 30 days and whose domicile or3

permanent duty station is in a State that receives4

assistance under this Act, such State shall not5

charge such member (or the spouse or dependent6

child of such member) tuition for attendance at a7

public institution of higher education in the State at8

a rate that is greater than the rate charged for resi-9

dents of the State.10

(2) CONTINUATION.If a member of the11

Armed Forces (or the spouse or dependent child of12

a member) pays tuition at a public institution of13

higher education in a State at a rate determined by14

paragraph (1), the provisions of paragraph (1) shall15

continue to apply to such member, spouse, or de-16

pendent while continuously enrolled at that institu-17

tion, notwithstanding a subsequent change in the18

permanent duty station of the member to a location19

outside the State.20

(b) HOMELESS CHILDREN ORYOUTHS AND FOSTER21

CARE CHILDREN OR YOUTHS.A State shall not charge22

a homeless child or youth or a foster care child or youth23

tuition for attendance at a public institution of higher edu-24

cation in the State at a rate that is greater than the rate25


54/783

54


charged for residents of the State, if the homeless child1

or youth or foster care child or youth2

(1) graduated from secondary school or ob-3

tained the recognized equivalent of a secondary4

school diploma in such State;5

(2) resided in such State as a homeless child6

or youth or a foster care child or youth while attend-7

ing secondary school in an adjacent State, as8

verified by9

(A) a local educational agency homeless10

liaison, designated pursuant to section11

722(g)(1)(J)(ii) of the McKinney-Vento Home-12

less Assistance Act (42 U.S.C.13

11432(g)(1)(J)(ii));14

(B) the director (or a designee of the di-15

rector) of an emergency or transitional shelter,16

street outreach program, homeless youth drop-17

in center, or other program serving homeless18

youth or families;19

(C) the director (or a designee of the di-20

rector) of a program funded under chapter 1 or21

2 of subpart 2 of part A of title IV; or22

(D) the State or tribal organization that23

administers a State plan under part B or E of24


55/783

55


title IV of the Social Security Act (42 U.S.C.1

621 et seq. and 670 et seq.).2

(c) EFFECTIVE DATES.3

(1) ARMED FORCES.With respect to an indi-4

vidual described in subsection (a)(1), this section5

shall take effect at each public institution of higher6

education in a State that receives assistance under7

this Act for the first period of enrollment at such in-8

stitution that begins after July 1, 2009.9

(2) HOMELESS CHILDREN OR YOUTHS AND10

FOSTER CARE CHILDREN OR YOUTHS.With respect11

to an individual described in subsection (b), this sec-12

tion shall take effect at each public institution of13

higher education in a State that receives assistance14

under this Act for the first period of enrollment at15

such institution that begins after July 1, 2015.16

(d) DEFINITIONS.17

(1) ARMED FORCES AND ACTIVE DUTY FOR18

A PERIOD OF MORE THAN 30 DAYS.In this section,19

the terms Armed Forces and active duty for a pe-20

riod of more than 30 days have the meanings given21

those terms in section 101 of title 10, United States22

Code.23

(2) HOMELESS CHILDREN AND YOUTHS.The24

term homeless children and youths has the mean-25


56/783

56


ing given the term in section 725 of the McKinney-1

Vento Homeless Assistance Act (42 U.S.C.2

11434a)..3

SEC. 111. RESPONSIBILITIES OF FSA OMBUDSMAN; ADDI-4

TION OF POINT OF CONTACT FOR MILITARY5

FAMILIES AND HOMELESS CHILDREN.6

Section 141(f) (20 U.S.C. 1018(f)) is amended7

(1) in paragraph (3)8

(A) in subparagraph (A), by striking9

and after the semicolon;10

(B) in subparagraph (B), by striking the11

period at the end and inserting ; and; and12

(C) by adding at the end the following:13

(C) receive, review, and resolve expedi-14

tiously complaints regarding a students inde-15

pendence under subparagraph (B) or (H) of16

section 480(d)(1), in consultation with knowl-17

edgeable parties, including child welfare agen-18

cies, local educational agency liaisons for home-19

less children and youths designated under sub-20

title B of title VII of the McKinney-Vento21

Homeless Assistance Act (42 U.S.C. 11431 et22

seq.) or State Coordinators for Education of23

Homeless Children and Youths established24

under such subtitle.;25


57/783

57



graph (5); and2


lowing:4

(4) MILITARY AND VETERAN POINT OF CON-5

TACT.6

(A) IN GENERAL.The Chief Operating7

Officer, in consultation with the Secretary, shall8

designate 1 or more employees to act as the9

military and veteran point of contact within the10

office of the Student Loan Ombudsman.11

(B) FUNCTIONS.The designated mili-12

tary and veteran point of contact described in13

subparagraph (A) shall14

(i) monitor the complaints received15

from the Ombudsman under paragraph16

(3)(A) from, and provide timely assistance17

to, members of the Armed Forces (includ-18

ing members of the National Guard and19

Reserves), veterans, and their dependents;20

(ii) coordinate with other agencies,21

including the Department of Defense, the22

Department of Veterans Affairs, the De-23

partment of Homeland Security, and the24

Bureau of Consumer Financial Protection,25


58/783

58


to ensure that members of the Armed1

Forces, veterans, and the dependents of2

members of the Armed Forces and vet-3

erans, who are students, borrowers, or po-4

tential borrowers, are aware of the avail-5

ability and functions of the Ombudsman;6

and7

(iii) issue to the Committee on8

Health, Education, Labor, and Pensions of9

the Senate, the Committee on Education10

and the Workforce of the House of Rep-11

resentatives, the Committee on Veterans12

Affairs of the Senate, the Committee on13

Veterans Affairs of the House of Rep-14

resentatives, the Committee on Armed15

Services of the Senate, and the Committee16

on Armed Services of the House of Rep-17

resentatives an annual report on the chal-18

lenges that such members of the Armed19

Forces, veterans, and dependents are fac-20

ing as students, borrowers, and potential21

borrowers..22


59/783

59


SEC. 112. RESPONSIBILITIES OF COVERED INSTITUTIONS,1

INSTITUTION-AFFILIATED ORGANIZATIONS,2

AND LENDERS.3

Section 152 (20 U.S.C. 1019a) is amended4

(1) in the matter preceding clause (i) of sub-5

section (a)(1)(A), by striking (h) of section 4876

and inserting (g) of section 487; and7

(2) in subsection (b)(1)(B)(i)(I), by striking8

section 487(e) and inserting section 487(d).9

SEC. 113. ESTABLISHMENT OF COMPLAINT RESOLUTION10

AND TRACKING SYSTEM.11

Title I (20 U.S.C. 1001 et seq.) is amended12

(1) by striking section 155; and13

(2) by adding at the end the following:14

PART FCOMPLAINT TRACKING SYSTEM15

SEC. 161. COMPLAINT TRACKING SYSTEM.16


(1) COMPLAINANT.The term complainant18

means19

(A) a student of a postsecondary edu-20

cational institution;21

(B) a family member of a student of a22

postsecondary educational institution;23

(C) a third party acting on behalf of a24

student of a postsecondary educational institu-25

tion; or26


60/783


61/783


62/783

62


(B) any responses received by the Sec-1

retary from the institution of higher education;2

and3

(C) any additional actions that the Sec-4

retary has taken, or plans to take, in response5

to the complaint or inquiry.6

(2) TIMELY RESPONSE TO SECRETARY BY IN-7

STITUTION OF HIGHER EDUCATION.The Secretary8

shall notify each institution of higher education that9

receives funds under this Act and that is the subject10

of a complaint or inquiry under this section regard-11

ing the complaint or inquiry. Not later than 60 days12

after receiving such notice, such institution shall13

provide a response to the Secretary concerning the14

complaint or inquiry, including15

(A) the steps that have been taken by the16

institution to respond to the complaint or in-17

quiry;18

(B) all responses received by the institu-19

tion from the complainant; and20

(C) any additional actions that the insti-21

tution has taken, or plans to take, in response22

to the complaint or inquiry.23

(3) FURTHER INVESTIGATION.The Secretary24

may, in the event that the complaint is not ade-25


63/783

63


quately resolved or addressed by the responses of the1

institution of higher education receiving funds under2

this Act under paragraph (2), ask additional ques-3

tions of such institution or seek additional informa-4

tion from or action by the institution.5

(4) PROVISION OF INFORMATION.6

(A) IN GENERAL.An institution of high-7

er education that receives funds under this Act8

shall, in a timely manner, comply with a re-9

quest by the Secretary for information in the10

control or possession of such institution con-11

cerning a complaint or inquiry received by the12

Secretary under subsection (a), including sup-13

porting written documentation, subject to sub-14

paragraph (B).15

(B) EXCEPTIONS.An institution of16

higher education that receives funds under this17

Act shall not be required to make available18

under this subsection19

(i) any nonpublic or confidential in-20

formation, including any confidential com-21

mercial information;22

(ii) any information collected by the23

institution for the purpose of preventing24

fraud or detecting or making any report25


64/783


65/783

65


(2) INTERACTION WITH EXISTING COMPLAINT1

SYSTEMS.To the extent practicable, all procedures2

established under this section, and all coordination3

carried out under paragraph (1), shall be done in ac-4

cordance with the complaint tracking systems estab-5

lished under Executive Order 13607 (77 Fed. Reg.6

25861; relating to establishing principles of excel-7

lence for educational institutions serving8

servicemembers, veterans, spouses, and other family9

members).10

(3) PUBLIC INFORMATION.11

(A) IN GENERAL.The Secretary shall12

regularly publish on the website of the Depart-13

ment information on the complaints and inquir-14

ies received for each postsecondary educational15

institution under this section, including16

(i) the number of complaints and in-17

quiries received;18

(ii) the types of complaints and in-19

quiries received; and20

(iii) where applicable, information21

about the resolution of the complaints and22

inquiries.23

(B) DATA PRIVACY.In carrying out sub-24

paragraph (A), the Secretary shall25


66/783

66


(i) comply with applicable data pri-1

vacy laws and regulations; and2

(ii) ensure that personally identifi-3

able information is not shared.4

(4) REPORTS.Each year, the Secretary shall5

prepare and submit a report to the authorizing com-6

mittees describing7

(A) the types and nature of complaints8

the Secretary has received under this section;9

(B) the extent to which complainants are10

receiving relief pursuant to this section;11

(C) whether particular types of com-12

plaints are more common in a given sector of13

postsecondary educational institutions;14

(D) any legislative recommendations that15

the Secretary determines are necessary to bet-16

ter assist students and families; and17

(E) the schools with the highest volume18

of complaints, as determined by the Secretary19

..20

SEC. 114. PROPRIETARY EDUCATION OVERSIGHT COORDI-21

NATION COMMITTEE.22

Title I (20 U.S.C. 1001 et seq.), as amended by sec-23

tion 114, is further amended by adding at the end the24

following:25


67/783

67


PART GPROPRIETARY EDUCATION1

OVERSIGHT COORDINATION IMPROVEMENT2

SEC. 166. DEFINITIONS.3

In this part:4

(1) EXECUTIVE OFFICER.The term execu-5

tive officer, with respect to a proprietary institution6

of higher education that is a publicly traded corpora-7

tion, means8

(A) the president of such corporation;9

(B) a vice president of such corporation10

who is in charge of a principal business unit, di-11

vision, or function of such corporation, such as12

sales, administration, or finance; or13

(C) any other officer or person who per-14

forms a policy making function for such cor-15

poration.16

(2) FEDERAL FUNDS.The term Federal17

funds means Federal funds described in section18

102(b)(2)(B).19

(3) PROPRIETARY INSTITUTION OF HIGHER20

EDUCATION.The term proprietary institution of21

higher education has the meaning given the term in22

section 102(b).23

(4) STATE APPROVAL AGENCY.The term24

State approval agency means any State agency that25

determines whether an institution of higher edu-26


68/783

68


cation is legally authorized within such State to pro-1

vide a program of education beyond secondary edu-2

cation.3

(5) VETERANS SERVICE ORGANIZATION.The4

term veterans service organization means an orga-5

nization recognized by the Secretary of Veterans Af-6

fairs for the representation of veterans under section7

5902 of title 38, United States Code.8

SEC. 167. ESTABLISHMENT OF COMMITTEE.9

(a) ESTABLISHMENT.There is established a com-10

mittee to be known as the Proprietary Education Over-11

sight Coordination Committee (referred to in this title as12

the Committee) and to be composed of the head (or the13

designee of such head) of each of the following Federal14

entities:15

(1) The Department of Education.16

(2) The Bureau of Consumer Financial Pro-17

tection.18

(3) The Department of Justice.19

(4) The Securities and Exchange Commission.20

(5) The Department of Defense.21

(6) The Department of Veterans Affairs.22

(7) The Federal Trade Commission.23

(8) The Department of Labor.24

(9) The Internal Revenue Service.25


69/783

69


(10) At the discretion of the President, any1

other relevant Federal agency or department.2

(b) PURPOSES.The Committee shall have the fol-3

lowing purposes:4

(1) Coordinate Federal oversight of propri-5

etary institutions of higher education to6

(A) improve enforcement of applicable7

Federal laws and regulations;8

(B) increase accountability of proprietary9

institutions of higher education to students and10

taxpayers; and11

(C) ensure the promotion of quality edu-12

cation programs.13

(2) Coordinate Federal activities to protect14

students from unfair, deceptive, abusive, unethical,15

fraudulent, or predatory practices, policies, or proce-16

dures of proprietary institutions of higher education.17

(3) Encourage information sharing among18

agencies related to Federal investigations, audits, or19

inquiries of proprietary institutions of higher edu-20

cation.21

(4) Increase coordination and cooperation be-22

tween Federal and State agencies, including State23

Attorneys General and State approval agencies, with24


70/783

70


respect to improving oversight and accountability of1

proprietary institutions of higher education.2

(5) Develop best practices and consistency3

among Federal and State agencies in the dissemina-4

tion of consumer information regarding proprietary5

institutions of higher education to ensure that stu-6

dents, parents, and other stakeholders have easy ac-7

cess to such information.8

(c) MEMBERSHIP.9

(1) DESIGNEES.For any designee described10

in subsection (a), the head of the member entity11

shall appoint a high-level official who exercises sig-12

nificant decision making authority for the oversight13

or investigatory activities and responsibilities related14

to proprietary institutions of higher education of the15

respective Federal entity of such head.16

(2) CHAIRPERSON.The Secretary of Edu-17

cation or the designee of such Secretary shall serve18

as the Chairperson of the Committee.19

(3) COMMITTEE SUPPORT.The head of each20

entity described in subsection (a) shall ensure appro-21

priate staff and officials of such entity are available22

to support the Committee-related work of such enti-23

ty.24


71/783

71


SEC. 168. MEETINGS.1

(a) COMMITTEE MEETINGS.The members of the2

Committee shall meet regularly, but not less than once3

during each quarter of each fiscal year, to carry out the4

purposes described in section 167(b).5

(b) MEETINGSWITH STATEAGENCIES AND STAKE-6

HOLDERS.The Committee shall meet not less than once7

each fiscal year, and shall otherwise interact regularly,8

with State Attorneys General, State approval agencies,9

veterans service organizations, and consumer advocates to10

carry out the purposes described in section 167(b).11

SEC. 169. REPORT.12

(a) IN GENERAL.The Committee shall submit a13

report each year to the authorizing committees, and any14

other committee of Congress that the Committee deter-15

mines appropriate.16

(b) PUBLIC ACCESS.The report described in sub-17

section (a) shall be made available to the public in a man-18

ner that is easily accessible to parents, students, and other19

stakeholders in accordance with the best practices devel-20

oped under section 167(b)(5).21

(c) CONTENTS.22

(1) IN GENERAL.The report shall include23

(A) an accounting of any action (as de-24

fined in paragraph (3)) taken by the Federal25


72/783

72


Government, any member entity of the Com-1

mittee, or a State2

(i) to enforce Federal or State laws3

and regulations applicable to proprietary4

institutions of higher education;5

(ii) to hold proprietary institutions of6

higher education accountable to students7

and taxpayers; and8

(iii) to promote quality education9

programs;10

(B) a summary of complaints against11

each proprietary institution of higher education12

received by any member entity of the Com-13

mittee;14

(C) the data described in paragraph (2)15

and any other data relevant to proprietary insti-16

tutions of higher education that the Committee17

determines appropriate; and18

(D) recommendations of the Committee19

for such legislative and administrative actions20

as the Committee determines are necessary21

to22

(i) improve enforcement of applicable23

Federal laws;24


73/783

73


(ii) increase accountability of propri-1

etary institutions of higher education to2

students and taxpayers; and3

(iii) ensure the promotion of quality4

education programs.5

(2) DATA.6

(A) INDUSTRY-WIDE DATA.The report7

shall include data on all proprietary institutions8

of higher education that consists of information9

regarding10

(i) the total amount of Federal funds11

that proprietary institutions of higher edu-12

cation received for the previous academic13

year, and the percentage of the total14

amount of Federal funds provided to insti-15

tutions of higher education (as defined in16

section 102) for such previous academic17

year that reflects such total amount of18

Federal funds provided to proprietary in-19

stitutions of higher education for such pre-20

vious academic year;21

(ii) the total amount of Federal22

funds that proprietary institutions of high-23

er education disbursed or delivered, on be-24

half of a student, or to a student to be25


74/783

74


used to attend an institution of higher edu-1

cation, for the previous academic year,2

disaggregated by3

(I) educational assistance in the4

form of a loan provided under title IV;5

(II) educational assistance in6

the form of a grant provided under7

title IV;8

(III) educational assistance pro-9

vided under chapter 33 of title 38,10

United States Code;11

(IV) tuition assistance provided12

under section 2007 of title 10, United13

States Code;14

(V) assistance provided under15

section 1784a of title 10, United16

States Code; and17

(VI) Federal funds not de-18

scribed in subclauses (I) through (V);19

(iii) the percentage of the total20

amount of Federal funds provided to insti-21

tutions of higher education (as defined in22

section 102) for such previous academic23

year for each of the programs described in24

subclauses (I) through (V) of clause (ii)25


75/783

75


that reflects such total amount of Federal1

funds provided to proprietary institutions2

of higher education for such previous aca-3

demic year for each of such programs;4

(iv) the average retention and grad-5

uation rates for students pursuing a degree6

at proprietary institutions of higher edu-7

cation;8

(v) the average cohort default rate9

(as defined in section 435(m)) for propri-10

etary institutions of higher education, and11

an annual list of cohort default rates (as12

defined in such section) for all proprietary13


(vi) for careers requiring the passage15

of a licensing examination16

(I) the passage rate of individ-17

uals who attended a proprietary insti-18

tution of higher education taking such19

examination to pursue such a career;20

and21

(II) the passage rate of all indi-22

viduals taking such exam to pursue23

such a career; and24


76/783

76


(vii) the use of private education1

loans at proprietary institutions of higher2

education that includes3

(I) an estimate of the total4

number of such loans; and5

(II) information on the average6

debt, default rate, and interest rate of7

such loans.8

(B) DATA ON PUBLICLY TRADED COR-9

PORATIONS.10

(i) IN GENERAL.The report shall11

include data on proprietary institutions of12

higher education that are publicly traded13

corporations, consisting of information14

on15

(I) any pre-tax profit of such16

proprietary institutions of higher edu-17

cation18

(aa) reported as a total19

amount and an average percent20

of revenue for all such propri-21

etary institutions of higher edu-22

cation; and23


77/783

77


(bb) reported for each such1

proprietary institution of higher2

education;3

(II) revenue for such propri-4

etary institutions of higher education5

spent on recruiting and marketing ac-6

tivities, student instruction, and stu-7

dent support services, reported8

(aa) as a total amount and9

an average percent of revenue for10

all such proprietary institutions11

of higher education; and12

(bb) for each such propri-13

etary institution of higher edu-14

cation;15

(III) total compensation pack-16

ages of the executive officers of each17

such proprietary institution of higher18

education;19

(IV) a list of institutional loan20

programs offered by each such propri-21

etary institution of higher education22

that includes information on the de-23

fault and interest rates of such pro-24

grams; and25


78/783

78


(V) the data described in1

clauses (ii) and (iii).2

(ii) DISAGGREGATED BY OWNER-3

SHIP.The report shall include data on4

proprietary institutions of higher education5

that are publicly traded corporations,6

disaggregated by corporate or parent enti-7

ty, brand name, and campus, consisting8

of9

(I) the total cost of attendance10

for each program at each such propri-11

etary institution of higher education,12

and information comparing such total13

cost for each such program to14

(aa) the total cost of at-15

tendance for each program at16

each public institution of higher17

education; and18

(bb) the average total cost19

of attendance for each program20

at all institutions of higher edu-21

cation, including such institutions22

that are public and such institu-23

tions that are private;24


79/783

79


(II) total enrollment,1

disaggregated by2

(aa) individuals enrolled in3

programs taken online; and4

(bb) individuals enrolled in5

programs that are not taken on-6

line;7

(III) the average retention and8

graduation rates for students pur-9

suing a degree at such proprietary in-10

stitutions of higher education;11

(IV) the percentage of students12

enrolled in such proprietary institu-13

tions of higher education who com-14

plete a program of such an institution15

within16

(aa) the standard period of17

completion for such program; and18

(bb) a period that is 15019

percent of such standard period20

of completion;21

(V) the total cost of attendance22

for each program at such proprietary23



80/783

80


(VI) the average cohort default1

rate, as defined in section 435(m), for2

such proprietary institutions of higher3

education, and an annual list of co-4

hort default rates (as defined in such5

section) for all proprietary institutions6

of higher education;7

(VII) the median educational8

debt incurred by students who com-9

plete a program at such a proprietary10

institution of higher education;11

(VIII) the median educational12

debt incurred by students who start13

but do not complete a program at14

such a proprietary institution of high-15

er education;16

(IX) the job placement rate for17

students who complete a program at18


er education and the type of employ-20

ment obtained by such students;21

(X) for careers requiring the22

passage of a licensing examination,23

the rate of individuals who attended24



81/783

81


er education and passed such an ex-1

amination; and2

(XI) the number of complaints3

from students enrolled in such propri-4

etary institutions of higher education5

who have submitted a complaint to6

any member entity of the Committee.7

(iii) DEPARTMENT OF DEFENSE AND8

VETERANS AFFAIRS ASSISTANCE.9

(I) IN GENERAL.To the extent10

practicable, the report shall provide11

information on the data described in12

clause (ii) for individuals using, to pay13

for the costs of attending such a pro-14

prietary institution of higher edu-15

cation, Federal funds provided under16

title 10, United States Code or title17

38, United States Code.18

(II) REVENUE.The report19

shall provide information on the rev-20

enue of proprietary institutions of21

higher education that are publicly22

heaa discussion draft language 6.25.14

Documents