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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.
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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.
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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.
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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
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(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
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(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
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(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
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(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
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(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
(2) by inserting after paragraph (3) the fol-10
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
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(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
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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
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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
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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
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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
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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
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(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
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(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
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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
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(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
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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
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(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
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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
(1) by redesignating paragraph (4) as para-17
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
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the date of enactment of the Higher Education Af-1
fordability Act, such calculator shall meet the re-2
quirements of paragraph (4).;3
(4) by inserting after paragraph (3) the fol-4
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
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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
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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
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(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
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(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
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(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
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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
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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
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(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
(a) DEFINITIONS.In this section:5
(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
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(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
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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
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(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
for completion of, or graduation from, the9
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
for completion of, or graduation from, the24
students initial educational program; and25
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(ii) 150 percent of the normal time1
for completion of, or graduation from, the2
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
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(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
(B) A visual representation that provides9
context for the information conveyed under sub-10
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
(B) A visual representation that provides19
context for the information conveyed under sub-20
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
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(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
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(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
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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
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(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
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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
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(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
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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
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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
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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
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(2) by redesignating paragraph (4) as para-1
graph (5); and2
(3) by inserting after paragraph (3) the fol-3
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
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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
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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
(a) DEFINITIONS.In this section:17
(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
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(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
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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
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(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
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(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
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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
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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
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(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
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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
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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
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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
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(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
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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
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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
institutions of higher education;14
(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
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(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
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(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
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(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
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(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
institutions of higher education;24
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(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
such a proprietary institution of high-19
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
such a proprietary institution of high-25
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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