Union Calendar No. 413
115th CONGRESS 2d Session |
[Report No. 115–550]
To support students in completing an affordable postsecondary education that will prepare them to enter the workforce with the skills they need for lifelong success.
December 1, 2017
Ms. Foxx (for herself and Mr. Guthrie) introduced the following bill; which was referred to the Committee on Education and the Workforce
February 8, 2018
Additional sponsors: Mr. Wilson of South Carolina, Mr. Hunter, Mr. Roe of Tennessee, Mr. Thompson of Pennsylvania, Mr. Walberg, Mr. Rokita, Mr. Barletta, Mr. Messer, Mr. Byrne, Mr. Brat, Ms. Stefanik, Mr. Allen, Mr. Lewis of Minnesota, Mr. Francis Rooney of Florida, Mr. Mitchell, Mr. Garrett, Mr. Smucker, Mr. Ferguson, Mr. Estes of Kansas, and Mrs. Handel
February 8, 2018
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on December 1, 2017]
To support students in completing an affordable postsecondary education that will prepare them to enter the workforce with the skills they need for lifelong success.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
(a) Short title.—This Act may be cited as the “Promoting Real Opportunity, Success, and Prosperity through Education Reform Act” or the “PROSPER Act”.
(b) Table of contents.—The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.
Sec. 101. Definition of institution of higher education.
Sec. 102. Institutions outside the United States.
Sec. 103. Additional definitions.
Sec. 104. Regulatory relief.
Sec. 111. Free speech protections.
Sec. 112. Sense of Congress on inclusion and respect.
Sec. 113. National Advisory Committee on Institutional Quality and Integrity.
Sec. 114. Repeal of certain reporting requirements.
Sec. 115. Programs on drug and alcohol abuse prevention.
Sec. 116. Campus access for religious groups.
Sec. 117. Secretarial prohibitions.
Sec. 118. Ensuring equal treatment by governmental entities.
Sec. 119. Single-sex social student organizations.
Sec. 120. Department staff.
Sec. 120A. Department of Homeland Security Recruiting on Campus.
Sec. 121. College Dashboard website.
Sec. 122. Net price calculators.
Sec. 123. Text book information.
Sec. 124. Review of current data collection and feasibility study of improved data collection.
Sec. 131. Performance-based organization for the delivery of Federal student financial assistance.
Sec. 132. Administrative data transparency.
Sec. 133. Report by GAO on transfer of functions of the Office of Federal Student Aid to the Department of Treasury.
Sec. 141. Modification of preferred lender arrangements.
Sec. 151. Addressing sexual assault.
Sec. 201. Repeal.
Sec. 202. Grants for access to high-demand careers.
Sec. 301. Strengthening institutions.
Sec. 302. Strengthening historically Black colleges and universities.
Sec. 303. Historically Black college and university capital financing.
Sec. 304. Minority Science and Engineering Improvement Program.
Sec. 305. Strengthening historically Black colleges and universities and other minority-serving institutions.
Sec. 306. General provisions.
Sec. 401. Federal Pell Grants.
Sec. 402. Federal TRIO programs.
Sec. 403. Gaining early awareness and readiness for undergraduate programs.
Sec. 404. Special programs for students whose families are engaged in migrant and seasonal farmwork.
Sec. 405. Child care access means parents in school.
Sec. 406. Repeals.
Sec. 407. Sunset of TEACH grants.
Sec. 421. Federal Direct Consolidation Loans.
Sec. 422. Loan rehabilitation.
Sec. 423. Loan forgiveness for teachers.
Sec. 424. Loan forgiveness for service in areas of national need.
Sec. 425. Loan repayment for civil legal assistance attorneys.
Sec. 426. Sunset of cohort default rate and other conforming changes.
Sec. 427. Additional disclosures.
Sec. 428. Closed school and other discharges.
Sec. 441. Purpose; authorization of appropriations.
Sec. 442. Allocation formula.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Community service.
Sec. 447. Work colleges.
Sec. 451. Termination of Federal Direct Loan Program under part D and other conforming amendments.
Sec. 452. Borrower defenses.
Sec. 453. Plain language disclosure form.
Sec. 454. Administrative expenses.
Sec. 455. Loan cancellation for teachers.
Sec. 461. Wind-down of Federal Perkins Loan Program.
Sec. 462. Federal ONE Loan program.
Sec. 471. Cost of attendance.
Sec. 472. Simplified needs test.
Sec. 473. Discretion of student financial aid administrators.
Sec. 474. Definitions of total income and assets.
Sec. 481. Definitions of academic year and eligible program.
Sec. 482. Programmatic loan repayment rates.
Sec. 483. Master calendar.
Sec. 484. FAFSA Simplification.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations.
Sec. 487. Institutional refunds.
Sec. 488. Information disseminated to prospective and enrolled students.
Sec. 489. Early awareness of financial aid eligibility.
Sec. 490. Distance education demonstration programs.
Sec. 491. Contents of program participation agreements.
Sec. 492. Regulatory relief and improvement.
Sec. 493. Transfer of allotments.
Sec. 494. Administrative expenses.
Sec. 494A. Repeal of advisory committee.
Sec. 494B. Regional meetings and negotiated rulemaking.
Sec. 494C. Report to Congress.
Sec. 494D. Deferral of loan repayment following active duty.
Sec. 494E. Contracts; matching program.
Sec. 495. Repeal of and prohibition on State authorization regulations.
Sec. 496. Recognition of accrediting agency or association.
Sec. 497. Eligibility and certification procedures.
Sec. 501. Hispanic-serving institutions.
Sec. 502. Promoting postbaccalaureate opportunities for Hispanic Americans.
Sec. 503. General provisions.
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Repeal of assistance program for Institute for International Public Policy.
Sec. 604. General provisions.
Sec. 701. Graduate education programs.
Sec. 702. Repeal of Fund for the Improvement of Postsecondary Education.
Sec. 703. Programs for students with disabilities.
Sec. 704. Repeal of college access challenge grant program.
Sec. 801. Repeal of additional programs.
Sec. 901. Education of the Deaf Act of 1986.
Sec. 911. Tribally Controlled Colleges and Universities Assistance Act of 1978.
Sec. 912. Dine´ College Act.
Sec. 921. Release of education records to facilitate the award of a recognized postsecondary credential.
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
Except as otherwise provided in this Act or the amendments made by this Act, this Act and the amendments made by this Act shall take effect on the date of enactment of this Act.
Part A of title I (20 U.S.C. 1001 et seq.) is amended by striking section 101 (20 U.S.C. 1001) and inserting the following:
“SEC. 101. Definition of institution of higher education.
“(a) Institution of higher education.—For purposes of this Act, the term ‘institution of higher education’ means an educational institution in any State that—
“(1) admits as regular students only persons who—
“(A) have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, or who meet the requirements of section 484(d);
“(2) is legally authorized by the State in which it maintains a physical location to provide a program of education beyond secondary education;
“(3) (A) is accredited by a nationally recognized accrediting agency or association; or
“(B) if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time; and
“(b) Additional limitations.—
“(1) PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION.—
“(2) POSTSECONDARY VOCATIONAL INSTITUTIONS.—A nonprofit or public institution that offers only non-degree programs described in subsection (a)(4)(C) shall not be considered an institution of higher education unless such institution has been in existence for at least 2 years.
“(3) LIMITATIONS BASED ON MANAGEMENT.—An institution shall not be considered an institution of higher education if—
“(A) the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy; or
“(B) the institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of Federal funds, or has been judicially determined to have committed a crime involving the acquisition, use, or expenditure involving Federal funds.
“(4) LIMITATION ON COURSE OF STUDY OR ENROLLMENT.—An institution shall not be considered an institution of higher education if such institution—
“(A) offers more than 50 percent of such institution’s courses by correspondence education, unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006;
“(B) enrolls 50 percent or more of the institution’s students in correspondence education courses, unless the institution is an institution that meets the definition in section 3(3)(C) of such Act;
“(C) has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for an institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate’s degree or a postsecondary certificate, or a bachelor’s degree, respectively; or
“(D) has a student enrollment in which more than 50 percent of the students either do not have a secondary school diploma or its recognized equivalent, or do not meet the requirements of section 484(d), and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards an associate’s degree or a bachelor’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if an institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent or do not meet the requirements of section 484(d).
“(c) List of accrediting agencies.—For purposes of this section, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part H of title IV, to be reliable authority as to the quality of the education offered.
“(d) Certification.—The Secretary shall certify, for the purposes of participation in title IV, an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part H of title IV.
“(e) Loss of eligibility.—An institution of higher education shall not be considered to meet the definition of an institution of higher education for the purposes of participation in title IV if such institution is removed from eligibility for funds under title IV as a result of an action pursuant to part H of title IV.
Part A of title I (20 U.S.C. 1001 et seq.) is further amended by striking section 102 (20 U.S.C. 1002) and inserting the following:
“SEC. 102. Institutions outside the United States.
“(a) Institutions outside the United States.—
“(1) IN GENERAL.—Only for purposes of part D or E of title IV, the term ‘institution of higher education’ includes an institution outside the United States (referred to in this part as a ‘foreign institution’) that is comparable to an institution of higher education as defined in section 101 and has been approved by the Secretary for purposes of part D or E of title IV, consistent with the requirements of section 452(d).
“(2) QUALIFICATIONS.—Only for the purposes of students receiving aid under title IV, an institution of higher education may not qualify as a foreign institution under paragraph (1), unless such institution—
“(A) is legally authorized to provide an educational program beyond secondary education by the education ministry (or comparable agency) of the country in which the institution is located;
“(C) except as provided with respect to clinical training offered by the institution under 600.55(h)(1), section 600.56(b), or section 600.57(a)(2) of title 34, Code of Federal Regulations (as in effect pursuant to subsection (b))—
“(i) does not offer any portion of an educational program in the United States to students who are citizens of the United States;
“(ii) has no written arrangements with an institution or organization located in the United States under which students enrolling at the foreign institution would take courses from an institution located in the United States; and
“(iii) does not allow students to enroll in any course offered by the foreign institution in the United States, including research, work, internship, externship, or special studies within the United States, except that independent research done by an individual student in the United States for not more than one academic year is permitted, if the research is conducted during the dissertation phase of a doctoral program under the guidance of faculty and the research is performed at a facility in the United States;
“(3) INSTITUTIONS WITH LOCATIONS IN AND OUTSIDE THE UNITED STATES.—In a case of an institution of higher education consisting of two or more locations offering all or part of an educational program that are directly or indirectly under common ownership and that enrolls students both within a State and outside the United States, and the number of students who would be eligible to receive funds under title IV attending locations of such institution outside the United States, is at least twice the number of students enrolled within a State—
“(b) Treatment of certain regulations.—
“(1) FORCE AND EFFECT.—
“(A) IN GENERAL.—The provisions of title 34, Code of Federal Regulations, referred to in subparagraph (B), as such provisions were in effect on the day before the date of the enactment of the PROSPER Act, shall have the force and effect of enacted law until changed by such law and are deemed to be incorporated in this subsection as though set forth fully in this subsection.
“(B) APPLICABLE PROVISIONS.—The provisions of title 34, Code of Federal Regulations, referred to in this subparagraph are the following:
“(iv) Subject to subparagraphs (D) and (E) of paragraph (2), section 600.55, except that paragraph (4) of subsection (f) of such section shall have no force or effect.
“(C) APPLICATION TO FEDERAL ONE LOANS.—With respect to the provisions of title 34, Code of Federal Regulations, referred to subparagraph (B), as modified by paragraph (2) any reference to a loan made under part D of title IV shall also be treated as a reference to a loan made under part E of title IV.
“(2) MODIFICATIONS.—The following shall apply to the provisions of title 34, Code of Federal Regulations, referred to in paragraph (1)(B):
“(A) Notwithstanding section 600.41(e)(3) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), if the basis for the loss of eligibility of a foreign graduate medical school to participate in programs under title IV is one or more annual pass rates on the United States Medical Licensing Examination below the threshold required in subparagraph (D) the sole issue is whether the aggregate pass rate for the preceding calendar year fell below that threshold. For purposes of the preceding sentence, in the case of a foreign graduate medical school that opted to have the Educational Commission for Foreign Medical Graduates calculate and provide the pass rates directly to the Secretary for the preceding calendar year as permitted under section 600.55(d)(2) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), in lieu of the foreign graduate medical school providing pass rate data to the Secretary under section 600.55(d)(1)(iii) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), the Educational Commission for Foreign Medical Graduates’ calculations of the school's rates are conclusive; and the presiding official has no authority to consider challenges to the computation of the rate or rates by the Educational Commission for Foreign Medical Graduates.
“(B) Notwithstanding section 600.52 of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), in this Act, the term ‘foreign institution’ means an institution described in subsection (a).
“(C) Notwithstanding section 600.54(c) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), to be eligible to participate in programs under title IV, foreign institution may not enter into a written arrangement under which an institution or organizations that is not eligible to participate in programs under title IV provides more than 25 percent of the program of study for one or more of the eligible foreign institution's programs.
“(D) Notwithstanding section 600.55(f)(1)(ii) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), for a foreign graduate medical school outside of Canada, for Step 1, Step 2–CS, and Step 2–CK, or the successor examinations, of the United States Medical Licensing Examination administered by the Educational Commission for Foreign Medical Graduate, at least 75 percent of the school's students and graduates who receive or have received title IV funds in order to attend that school, and who completed the final of these three steps of the examination in the year preceding the year for which any of the school's students seeks a loan under title IV shall have received an aggregate passing score on the exam as a whole; or except as provided in section 600.55(f)(2) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), for no more than two consecutive years, at least 70 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (who receive or have received title IV funds in order to attend that school) taking the United States Medical Licensing Examination exams in the year preceding the year for which any of the school’s students seeks a loan under title IV shall have received an aggregate passing score on the exam as a whole.
“(E) Notwithstanding 600.55(h)(2) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), not more than 25 percent of the graduate medical educational program offered to United States students, other than the clinical training portion of the program, may be located outside of the country in which the main campus of the foreign graduate medical school is located.
“(F) Notwithstanding section 600.57(a)(5) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), a nursing school shall reimburse the Secretary for the cost of any loan defaults for current and former students during the previous fiscal year.
“(G) Notwithstanding section 668.23(h)(1)(ii), of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), a foreign institution that received $500,000 or more in funds under title IV during its most recently completed fiscal year shall submit, in English, for each most recently completed fiscal year in which it received such funds, audited financial statements prepared in accordance with generally accepted accounting principles of the institution's home country provided that such accounting principles are comparable to the International Financial Reporting Standards.
“(H) Notwithstanding section 668.23(h)(1)(ii), of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), only in a case in which the accounting principles of an institution’s home country are not comparable to International Financial Reporting Standards shall the institution be required to submit corresponding audited financial statements that meet the requirements of section 668.23(d) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)).
“(c) Special rules.—
“(1) IN GENERAL.—A foreign graduate medical school at which student test passage rates are below the minimum requirements set forth in subsection (b)(2)(D) for each of the two most recent calendar years for which data are available shall not be eligible to participate in programs under part D or E of title IV in the fiscal year subsequent to that consecutive two year period and such institution shall regain eligibility to participate in programs under such part only after demonstrating compliance with requirements under section 600.55 of title 34, Code of Federal Regulations (as in effect pursuant to subsection (b)) for one full calendar year subsequent to the fiscal year the institution became ineligible unless, within 30 days of receiving notification from the Secretary of the loss of eligibility under this paragraph, the institution appeals the loss of its eligibility to the Secretary. The Secretary shall issue a decision on any such appeal within 45 days after its submission. Such decision may permit the institution to continue to participate in programs under part D or E of title IV, if—
“(2) STUDENT ELIGIBILITY.—If, pursuant to this subsection, a foreign graduate medical school loses eligibility to participate in the programs under part D or E of title IV, then a student at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under such part while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
“(3) TREATMENT OF CLINICAL TRAINING PROGRAMS.—
“(A) IN GENERAL.—Clinical training programs operated by a foreign graduate medical school with an accredited hospital or clinic in the United States or at an institution in Canada accredited by the Liaison Committee on Medical Education shall be deemed to be approved and shall not require the prior approval of the Secretary.
“(B) ON-SITE EVALUATIONS.—Any part of a clinical training program operated by a foreign graduate medical school located in a foreign country other than the country in which the main campus is located, in the United States, or at an institution in Canada accredited by the Liaison Committee on Medical Education, shall not require an on-site evaluation or specific approval by the institution’s medical accrediting agency if the location is a teaching hospital accredited by and located within a foreign country approved by the National Committee on Foreign Medical Education and Accreditation.
(a) Diploma mill.—Section 103(5)(B) (20 U.S.C. 1003(5)(B)) is amended by striking “section 102” and inserting “section 101 or 102”.
(b) Correspondence education.—Section 103(7) (20 U.S.C. 1003(7)) is amended to read as follows:
“(7) CORRESPONDENCE EDUCATION.—The term ‘correspondence education’ means education that is provided by an institution of higher education under which—
(c) Early childhood education program.—Section 103(8) (20 U.S.C. 1003(8)) is amended to read as follows:
“(8) EARLY CHILDHOOD EDUCATION PROGRAM.—The term ‘early childhood education program’ means a program—
“(A) that serves children of a range of ages from birth through age five that addresses the children’s cognitive (including language, early literacy, and early mathematics), social, emotional, and physical development; and
“(B) that is—
“(i) a Head Start program or an Early Head Start program carried out under the Head Start Act (42 U.S.C. 9831 et seq.), including a migrant or seasonal Head Start program, an Indian Head Start program, or a Head Start program or an Early Head Start program that also receives State funding;
(d) Nonprofit.—Section 103(13) (20 U.S.C. 1003(13)) is amended to read as follows:
“(13) NONPROFIT.—
“(A) The term ‘nonprofit’, when used with respect to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.
“(B) The term ‘nonprofit’, when used with respect to foreign institution means—
“(i) an institution that is owned and operated only by one or more nonprofit corporations or associations; and
“(ii) (I) if a recognized tax authority of the institution’s home country is recognized by the Secretary for purposes of making determinations of an institution’s nonprofit status for purposes of title IV, the institution is determined by that tax authority to be a nonprofit educational institution; or
“(II) if no recognized tax authority of the institution’s home country is recognized by the Secretary for purposes of making determinations of an institution’s nonprofit status for purposes of title IV, the foreign institution demonstrates to the satisfaction of the Secretary that it is a nonprofit educational institution.”.
(e) Competency-based education; Competency-based education program.—Section 103 (20 U.S.C. 1003) is amended by adding at the end the following:
“(25) COMPETENCY-BASED EDUCATION; COMPETENCY-BASED EDUCATION PROGRAM.—
“(A) COMPETENCY-BASED EDUCATION.—Except as otherwise provided, the term ‘competency-based education’ means education that—
“(i) measures academic progress and attainment—
“(ii) provides the educational content, activities, and resources, including substantive instructional interaction, including by faculty, and regular support by the institution, necessary to enable students to learn or develop what is required to demonstrate and attain mastery of such competencies, as assessed by the accrediting agency or association of the institution of higher education.
“(B) COMPETENCY-BASED EDUCATION PROGRAM.—Except as otherwise provided, the term ‘competency-based education program’ means a postsecondary program offered by an institution of higher education that—
“(i) provides competency-based education, which upon a student’s demonstration or mastery of a set of competencies identified and required by the institution, leads to or results in the award of a certificate, degree, or other recognized educational credential;
“(ii) ensures title IV funds may be used only for learning that results from instruction provided, or overseen, by the institution, not for the portion of the program of which the student has demonstrated mastery prior to enrollment in the program or tests of learning that are not associated with educational activities overseen by the institution; and
“(iii) is organized in such a manner that an institution can determine, based on the method of measurement selected by the institution under subparagraph (A)(i), what constitutes a full-time, three-quarter time, half-time, and less than half-time workload for the purposes of awarding and administering assistance under title IV of this Act, or assistance provided under another provision of Federal law to attend an institution of higher education.
(f) Pay for success initiative.—Section 103 (20 U.S.C. 1003) is amended by adding at the end the following:
“(26) PAY FOR SUCCESS INITIATIVE.—The term ‘pay for success initiative’ has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).”.
(g) Evidence-based.—Section 103 (20 U.S.C. 1003) is amended by adding at the end the following:
“(27) EVIDENCE-BASED.—The term ‘evidence-based’ has the meaning given the term in section 8101(21)(A) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801(21)(A)), except that such term shall also apply to institutions of higher education.”.
(a) Regulations repealed.—
(1) REPEAL.—The following regulations (including any supplement or revision to such regulations) are repealed and shall have no legal effect:
(A) DEFINITION OF CREDIT HOUR.—The definition of the term “credit hour” in section 600.2 of title 34, Code of Federal Regulations, as added by the final regulations published by the Department of Education in the Federal Register on October 29, 2010 (75 Fed. Reg. 66946).
(B) GAINFUL EMPLOYMENT.—Sections 600.10(c), 600.20(d), 668.401 through 668.415, 668.6, and 668.7, of title 34, Code of Federal Regulations, as added or amended by the final regulations published by the Department of Education in the Federal Register on October 31, 2014 (79 Fed. Reg. 64889 et seq.).
(C) BORROWER DEFENSE.—Sections 668.41, 668.90, 668.93, 668.171, 668.175, 674.33, 682.211, 682.402(d), 682.405, 682.410, 685.200, 685.205, 685.206, 685.212(k), 685.214, 685.215, 685.222, appendix A to subpart B of part 685, 685.300, 685.308, of title 34, Code of Federal Regulations, as added or amended by the final regulations published by the Department of Education in the Federal Register on November 1, 2016 (81 Fed. Reg. 75926 et seq.).
(2) EFFECT OF REPEAL.—To the extent that regulations repealed—
(A) by subparagraph (A) or subparagraph (B) of paragraph (1) amended regulations that were in effect on June 30, 2011, the provisions of the regulations that were in effect on June 30, 2011, and were so amended are restored and revived as if the regulations repealed by such subparagraph had not taken effect; and
(b) Certain regulations and other actions prohibited.—
(1) GAINFUL EMPLOYMENT.—The Secretary of Education shall not, on or after the date of enactment of this Act, promulgate or enforce any regulation or rule with respect to the definition or application of the term “gainful employment” for any purpose under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(2) CREDIT HOUR.—The Secretary of Education shall not, on or after the date of enactment of this Act, promulgate or enforce any regulation or rule with respect to the definition of the term “credit hour” for any purpose under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(3) POSTSECONDARY INSTITUTION RATINGS SYSTEM.—The Secretary of Education shall not carry out, develop, refine, promulgate, publish, implement, administer, or enforce a postsecondary institution ratings system or any other performance system to rate institutions of higher education (as defined in section 101 or 102 of the Higher Education Act of 1965 (20 U.S.C. 1001; 1002)).
Part B of title I (20 U.S.C. 1011 et seq.) is amended by redesignating section 112 as section 112A and section 112A, as so redesignated, is amended—
(1) in subsection (a)—
(B) by inserting after paragraph (1) the following:
“(2) It is the sense of Congress that—
“(A) every individual should be free to profess, and to maintain, the opinion of such individual in matters of religion, and that professing or maintaining such opinion should in no way diminish, enlarge, or affect the civil liberties or rights of such individual on the campus of an institution of higher education; and
(3) by inserting after subsection (a), the following:
“(b) Disclosure of Free Speech Policies.—
“(1) IN GENERAL.—No institution of higher education shall be eligible to receive funds under this Act, including participation in any program under title IV, unless the institution certifies to the Secretary that the institution has annually disclosed to current and prospective students any policies held by the institutions related to protected speech on campus, including policies limiting where and when such speech may occur, and the right to submit a complaint under paragraph (2) if the institution is not in compliance with any policy disclosed under this paragraph or is enforcing a policy related to protected speech that has not been disclosed by the institution under this paragraph.
“(2) COMPLAINT ON SPEECH POLICIES.—
“(A) DESIGNATION OF AN EMPLOYEE.—The Secretary shall designate an employee in the Office of Postsecondary Education of the Department to receive complaints from students or student organizations that believe an institution is not in compliance with any policy disclosed under paragraph (1) or is enforcing a policy related to protected speech that has not been disclosed by the institution under such paragraph.
“(B) COMPLAINT.—A complaint submitted under subparagraph (A)—
“(C) SECRETARIAL REQUIREMENTS.—
“(i) REVIEW.—
“(ii) DETERMINATION THAT INSTITUTION FAILED TO COMPLY.—If, upon the review required under clause (i), the Secretary determines that the institution is not in compliance with the institution’s policy disclosed under paragraph (1), or the institution is enforcing a policy that was not disclosed under paragraph (1), the Secretary shall—
Part B of title I (20 U.S.C. 1011 et seq.) is further amended by inserting after section 112A (as redesignated by section 111) the following:
“SEC. 112B. Sense of Congress on inclusion and respect.
“It is the sense of Congress that—
“(1) harassment and violence targeted at students because of their race, color, religion, sex, or national origin as listed in section 703 of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2) should be condemned;
Section 114 (20 U.S.C. 1011c) is amended—
(2) in subsection (b)—
(a) Repeals.—The following provisions of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) are repealed:
(1) Section 117 (20 U.S.C. 1011f).
(2) Section 119 (20 U.S.C. 1011h).
(b) Conforming amendments.—
(2) Sections 120, 121, 122, and 123 are redesignated as sections 118, 119, 120, and 121, respectively.
(3) Section 485(f)(1)(H) (20 U.S.C. 1092(f)(1)(H)) is amended by striking “section 120” and inserting “section 118”.
Section 118 (as so redesignated) is amended to read as follows:
“SEC. 118. Opioid misuse and substance abuse prevention program.
“(a) Required programs.—Each institution of higher education participating in any program under this Act shall adopt and implement an evidence-based program to prevent substance abuse by students and employees that, at a minimum, includes the annual distribution to each student and employee of—
“(b) Information availability.—Each institution of higher education described in subsection (a) shall, upon request, make available to the Secretary and to the public a copy of the institutional standards described under subsection (a)(1) and information regarding any programs described in subsection (a)(2).
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 115 of this part) is amended by adding at the end the following:
“SEC. 122. Campus access for religious groups.
“None of the funds made available under this Act may be provided to any public institution of higher education that denies to a religious student organization any right, benefit, or privilege that is generally afforded to other student organizations at the institution (including full access to the facilities of the institution and official recognition of the organization by the institution) because of the religious beliefs, practices, speech, leadership and membership standards, or standards of conduct of the religious student organization.”.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 116 of this part) is amended by adding at the end the following:
“SEC. 123. Secretarial prohibitions.
“(a) In general.—Nothing in this Act shall be construed to authorize or permit the Secretary to promulgate any rule or regulation that exceeds the scope of the explicit authority granted to the Secretary under this Act.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 117 of this part) is further amended by adding at the end the following:
“SEC. 124. Ensuring equal treatment by governmental entities.
“(a) In general.—Notwithstanding any other provision of law, no government entity shall take any adverse action against an institution of higher education that receives funding under title IV, if such adverse action—
“(b) Assertion by institution.—An actual or threatened violation of subsection (a) may be asserted by an institution of higher education that receives funding under title IV as a claim or defense in a proceeding before any court. The court shall grant any appropriate equitable relief, including injunctive or declaratory relief.
“(c) Rule of construction.—Nothing in this section shall be construed to alter or amend—
“(1) title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.);
“(2) section 182 of the Elementary and Secondary Education Amendments Act of 1966 (42 U.S.C. 2000d–5); or
“(3) section 2 of the Elementary and Secondary Education Amendments Act of 1969 (42 U.S.C. 2000d–6)
“(d) Definitions.—In this section:
“(1) ADVERSE ACTION.—The term ‘adverse action’ includes, with respect to an institution of higher education or the past, current, or prospective students of such institution—
“(3) INSTITUTION OF HIGHER EDUCATION.—The term ‘institution of higher education’ has the meaning given the term in section 101 or 102.
“(4) RELIGIOUS MISSION.—The term ‘religious mission’ includes an institution of higher education’s religious tenets, beliefs, or teachings, and any policies or decisions related to such tenets, beliefs, or teachings (including any policies or decisions concerning housing, employment, curriculum, self-governance, or student admission, continuing enrollment, or graduation).”.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 118 of this part) is further amended by adding at the end the following:
“SEC. 125. Single-sex social student organizations.
“(a) Non-retaliation against single-sex student organizations.—An institution of higher education that has a policy allowing for the official recognition of a single-sex social student organization may not—
“(1) require or coerce such a recognized organization to admit as a member an individual who does not meet the organization’s criteria for single-sex status;
“(2) require or coerce such a recognized organization to permit an individual described in paragraph (1) to participate in the activities of the organization;
“(b) Construction.—Nothing in this Act shall be construed—
“(1) to create any enforceable right—
“(c) Adverse action.—For the purposes of this section, the term ‘adverse action’ includes the following:
“(1) Expulsion, suspension, probation, censure, condemnation, reprimand, or any other disciplinary, coercive, or adverse action taken by an institution of higher education or administrative unit of such an institution.
“(2) An oral or written warning made by an official of an institution of higher education acting in the official’s official capacity.
“(4) Withholding, in whole or in part, any financial assistance (including scholarships and on-campus employment), or denying the opportunity to apply for financial assistance, a scholarship, or on-campus employment.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 119 of this part) is further amended by adding at the end the following:
“The Secretary shall—
“(1) not later than 60 days after the date of enactment of the PROSPER Act, identify the number of Department full-time equivalent employees who worked on or administered each education program or project authorized under this Act, as such program or project was in effect on the day before such date, and publish such information on the Department's website;
“(2) not later than 60 days after such date, identify the number of full-time equivalent employees who worked on or administered each program or project authorized under this Act, as such program or project was in effect on the day before such date, that has been eliminated or consolidated since such date;
“(3) not later than 1 year after such date, reduce the workforce of the Department by the number of full-time equivalent employees the Department identified under paragraph (2); and
“(4) not later than 1 year after such date, report to the Congress on—
“(A) the number of full-time equivalent employees associated with each program or project authorized under this Act and administered by the Department;
“(B) the number of full-time equivalent employees who were determined to be associated with eliminated or consolidated programs or projects described in paragraph (2);
“(C) how the Secretary has reduced the number of full-time equivalent employees as described in paragraph (3);
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 120 of this part) is further amended by adding at the end the following:
“SEC. 127. Department of Homeland Security Recruiting on Campus.
“None of the funds made available under this Act may be provided to any institution of higher education that has in effect a policy or practice that either prohibits, or in effect prevents, the Secretary of Homeland Security from gaining access to campuses or access to students (who are 17 years of age or older) on campuses, for purposes of Department of Homeland Security recruiting in a manner that is at least equal in quality and scope to the access to campuses and to students that is provided to any other employer.”.
(a) Establishment.—Section 132 (20 U.S.C. 1015a) is amended—
(4) by redesignating subsections (h), (i), and (k) as subsections (c), (d), and (e), respectively; and
(5) by striking subsection (d) (as so redesignated) and inserting the following new subsection:
“(d) Consumer information.—
“(1) AVAILABILITY OF TITLE IV INSTITUTION INFORMATION.—The Secretary shall develop and make publicly available a website to be known as the ‘College Dashboard website’ in accordance with this section and prominently display on such website, in simple, understandable, and unbiased terms for the most recent academic year for which satisfactory data are available, the following information with respect to each institution of higher education that participates in a program under title IV:
“(E) The percentage of degree-seeking or certificate-seeking undergraduate students enrolled at the institution who obtain a degree or certificate within—
“(i) 100 percent of the normal time for completion of, or graduation from, the program in which the student is enrolled;
“(ii) 150 percent of the normal time for completion of, or graduation from, the program in which the student is enrolled;
“(F) (i) The average net price per year for undergraduate students enrolled at the institution who received Federal student financial aid under title IV based on dependency status and an income category selected by the user of the College Dashboard website from a list containing the following income categories:
“(G) The percentage of undergraduate and graduate students who obtained a certificate or degree from the institution who borrowed Federal student loans—
“(H) The average Federal student loan debt incurred by a student who obtained a certificate or degree in an educational program from the institution and who borrowed Federal student loans in the course of obtaining such certificate or degree—
“(I) The median earnings of students who obtained a certificate or degree in an educational program from the institution and who received Federal student financial aid under title IV in the course of obtaining such certificate or degree—
“(2) ADDITIONAL INFORMATION.—The Secretary shall publish on websites that are linked to through the College Dashboard website, for the most recent academic year for which satisfactory data is available, the following information with respect to each institution of higher education that participates in a program under title IV:
“(A) ENROLLMENT.—The following enrollment information:
“(iii) In the case of an institution other than an institution that provides all courses and programs through online education, of the undergraduate students enrolled at the institution—
“(iv) The percentages of undergraduate students enrolled at the institution, disaggregated by—
“(B) COMPLETION.—The information required under paragraph (1)(E), disaggregated by—
“(C) COSTS.—The following cost information:
“(i) The cost of attendance for full-time undergraduate students enrolled in the institution who live on campus.
“(ii) The cost of attendance for full-time undergraduate students enrolled in the institution who live off campus.
“(iii) The cost of tuition and fees for full-time undergraduate students enrolled in the institution.
“(iv) The cost of tuition and fees per credit hour or credit hour equivalency for undergraduate students enrolled in the institution less than full time.
“(v) In the case of a public institution of higher education (other than an institution described in clause (vi)) and notwithstanding subsection (b)(1), the costs described in clauses (i) and (ii) for—
“(vi) In the case of a public institution of higher education that offers different tuition rates for students who are residents of a geographic subdivision smaller than a State and students not located in such geographic subdivision and notwithstanding subsection (b)(1), the costs described in clauses (i) and (ii) for—
“(I) full-time students enrolled at the institution who are residents of such geographic subdivision;
“(D) FINANCIAL AID.—The following information with respect to financial aid:
“(i) The average annual grant amount (including Federal, State, and institutional aid) awarded to an undergraduate student enrolled at the institution who receives grant aid, and the percentage of undergraduate students receiving such aid.
“(3) OTHER DATA MATTERS.—
“(A) COMPLETION DATA.—The Commissioner of Education Statistics shall ensure that the information required under paragraph (1)(E) includes information with respect to all students at an institution, in a manner that accurately reflects the actual length of the program, including students other than first-time, full-time students and students who transfer to another institution, in a manner that the Commissioner considers appropriate.
“(B) ADJUSTMENT OF INCOME CATEGORIES.—The Secretary may annually adjust the range of each of the income categories described in paragraph (1)(F) to account for a change in the Consumer Price Index for All Urban Consumers as determined by the Bureau of Labor Statistics if the Secretary determines an adjustment is necessary.
“(4) INSTITUTIONAL COMPARISON.—The Secretary shall include on the College Dashboard website a method for users to easily compare the information required under paragraphs (1) and (2) between institutions.
“(6) CONSUMER TESTING.—
“(A) IN GENERAL.—In developing and maintaining the College Dashboard website, the Secretary, in consultation with appropriate departments and agencies of the Federal Government, shall conduct consumer testing with appropriate persons, including current and prospective college students, family members of such students, institutions of higher education, and experts, to ensure that the College Dashboard website is usable and easily understandable and provides useful and relevant information to students and families.
“(B) RECOMMENDATIONS FOR CHANGES.—The Secretary shall submit to the authorizing committees any recommendations that the Secretary considers appropriate for changing the information required to be provided on the College Dashboard website under paragraphs (1) and (2) based on the results of the consumer testing conducted under subparagraph (A).
“(7) PROVISION OF APPROPRIATE LINKS TO PROSPECTIVE STUDENTS AFTER SUBMISSION OF FAFSA.—The Secretary shall provide to each student who submits a Free Application for Federal Student Aid described in section 483 a link to the webpage of the College Dashboard website that contains the information required under paragraph (1) for each institution of higher education such student includes on such Application.
“(8) INTERAGENCY COORDINATION.—The Secretary, in consultation with each appropriate head of a department or agency of the Federal Government, shall ensure to the greatest extent practicable that any information related to higher education that is published by such department or agency is consistent with the information published on the College Dashboard website.
(b) Conforming amendments.—The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as amended by subsection (a) of this section, is further amended, by striking “College Navigator” each place it appears and inserting “College Dashboard”.
(c) References.—Any reference in any law (other than this Act), regulation, document, record, or other paper of the United States to the College Navigator website shall be considered to be a reference to the College Dashboard website.
(d) Development.—The Secretary of Education shall develop and publish the College Dashboard website required under section 132 (20 U.S.C. 1015a), as amended by this section, not later than one year after the date of the enactment of this Act.
(e) College Navigator website maintenance.—The Secretary shall maintain the College Navigator website required under section 132 (20 U.S.C. 1015a), as in effect the day before the date of the enactment of this Act, in the manner required under the Higher Education Act of 1965, as in effect on such day, until the College Dashboard website referred to in subsection (d) is complete and publicly available on the Internet.
Subsection (c) of section 132 (20 U.S.C. 1015a), as so redesignated by section 121(a)(4) of this Act, is amended—
(2) by inserting after paragraph (3) the following new paragraphs:
“(4) MINIMUM REQUIREMENTS FOR NET PRICE CALCULATORS.—Not later than 1 year after the date of the enactment of the PROSPER Act, a net price calculator for an institution of higher education shall meet the following requirements:
“(A) The link for the calculator shall—
“(B) The webpage displaying the results for the calculator shall specify at least the following information:
“(i) The net price (as calculated under subsection (a)(3)) for such institution, which shall be the most visually prominent figure on the results screen.
“(ii) Cost of attendance, including—
“(II) average annual cost of room and board for the institution for a full-time undergraduate student enrolled in the institution;
“(iii) Estimated total need-based grant aid and merit-based grant aid from Federal, State, and institutional sources that may be available to a full-time undergraduate student.
“(iv) Percentage of the full-time undergraduate students enrolled in the institution that received any type of grant aid described in clause (iii).
“(vi) In the case of a calculator that—
“(I) includes questions to estimate the eligibility of a student or prospective student for veterans’ education benefits (as defined in section 480) or educational benefits for active duty service members, such benefits are displayed on the results screen in a manner that clearly distinguishes such benefits from the grant aid described in clause (iii); or
“(5) PROHIBITION ON USE OF DATA COLLECTED BY THE NET PRICE CALCULATOR.—A net price calculator for an institution of higher education shall—
“(A) clearly indicate which questions are required to be completed for an estimate of the net price from the calculator;
Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amended by striking “section 102” and inserting “section 101 or 102”.
Part C of title I (20 U.S.C. 1015 et seq.) is amended by adding at the end the following:
“SEC. 138. Review of current data collection and feasibility study of improved data collection.
“(a) In general.—Not later than 2 years after the date of the enactment of the PROSPER Act, the Secretary shall, in order to help improve the information available to students and families and to eliminate significant and burdensome data collection requirements placed on institutions under this Act—
“(2) determine which requirements are duplicative or no longer necessary to provide meaningful information for compliance, accountability, or transparency in decision making; and
“(b) Consultation.—In conducting the review under subsection (a)(1), the Secretary shall consult with—
“(c) Data collection and reporting.—In examining the best way to collect data under subsection (a)(3), the Secretary shall explore the feasibility of working with the National Student Clearinghouse to establish a third-party method to collect and produce institution and program-level analysis of the data determined necessary to report, and how such data reported to the clearinghouse could be secured, while considering the following:
“(1) Whether data reported to the clearinghouse can accurately reflect institutional and program-level enrollment, retention, transfer, and completion rates.
“(2) How much duplication of reporting can be eliminated and if such reporting can replace the reporting to the Integrated Postsecondary Education Data System (IPEDS), including whether the data quality will be maintained or improved from the current data provided to the Department through IPEDS.
“(3) Whether such reporting to the clearinghouse can protect the confidentiality of the reported data, while providing more accurate institutional performance measures.
“(4) Whether such reporting can be made compatible with systems that include post-graduation outcomes including employment and earnings data.
“(5) Whether the use of the clearinghouse for such data reporting will change the current interaction between institutions and the clearinghouse.
“(6) Whether the clearinghouse can meet the requirements of such reporting without transferring any disaggregated data that would be personally identifiable to the Department of Education.
“(7) Whether the clearinghouse can ensure the Department of Education would never have access to any health data, student discipline records or data, elementary and secondary education data, or information relating to citizenship or national origin status, course grades, individual postsecondary entrance examination results, political affiliation, or religion, as a result of producing information for program level analysis of the data received from institutions of higher education.
Section 141 (20 U.S.C. 1018) is amended—
(2) in subsection (b)—
(B) in paragraph (2) by adding at the end the following:
“(C) Collecting input from stakeholders on the operation of all Federal student assistance programs and accountability practices relating to such programs, and ensuring that such input informs operation of the PBO and is provided to the Secretary to inform policy creation related to Federal student financial assistance programs.”; and
(C) in paragraph (6)—
(i) in subparagraph (A), by striking “The Secretary” and inserting “Not less frequently than once annually, the Secretary”;
(3) in subsection (c)—
(A) in paragraph (1)—
(ii) by amending subparagraph (B) to read as follows:
“(B) CONSULTATION.—
“(i) PLAN DEVELOPMENT.—Beginning not later than 12 months before issuing each 3-year performance plan under subparagraph (A), the Secretary and the Chief Operating Officer shall consult with students, institutions of higher education, Congress, lenders, and other interested parties regarding the development of the plan. In carrying out such consultation, the Secretary shall seek public comment consistent with the requirements of subchapter II of chapter 5 of title 5, United States Code (commonly known as the ‘Administrative Procedure Act’).
(B) in paragraph (2)—
(4) in subsection (d)—
(A) in paragraph (2), by striking “The Secretary may reappoint” and inserting “Except as provided in paragraph (4)(C),”
(B) in paragraph (4)—
(ii) by amending subparagraph (B) to read as follows:
(C) in paragraph (5), by amending subparagraph (B) to read as follows:
“(B) BONUS.—In addition, the Chief Operating Officer may receive a bonus in the following amounts:
“(i) For a period covered by a performance agreement entered into under paragraph (4) before the date of the enactment of the PROSPER Act, an amount that does not exceed 50 percent of the annual rate basic pay of the Chief Operating Officer, based upon the Secretary’s evaluation of the Chief Operating Officer’s performance in relation to the goals set forth in the performance agreement.
“(ii) For a period covered by a performance agreement entered into under paragraph (4) on or after the date of the enactment of the PROSPER Act, an amount that does not exceed 40 percent of the annual rate basic pay of the Chief Operating Officer, based upon the Secretary’s evaluation of the Chief Operating Officer’s performance in relation to the goals set forth in the performance agreement.”.
(D) by adding at the end the following:
“(6) PERFORMANCE EVALUATION SYSTEM.—The Secretary shall develop a system to evaluate the performance of the Chief Operating Officer and any senior managers appointed by such Officer under subsection (e). Such system shall—
(5) in subsection (e)—
(A) in paragraph (2), by striking “organization and individual goals” and inserting “specific, measurable organization and individual goals and the metrics used to measure progress toward such goals”;
(B) in paragraph (3), by amending subparagraph (B) to read as follows:
“(B) BONUS.—In addition, a senior manager may receive a bonus in the following amounts:
“(i) For a period covered by a performance agreement entered into under paragraph (2) before the date of the enactment of the PROSPER Act, an amount such that the manager’s total annual compensation does not exceed 125 percent of the maximum rate of basic pay for the Senior Executive Service, including any applicable locality-based comparability payment, based upon the Chief Operating Officer’s evaluation of the manager’s performance in relation to the goals set forth in the performance agreement.
“(ii) For a period covered by a performance agreement entered into under paragraph (2) on or after the date of the enactment of the PROSPER Act, an amount such that the manager’s total annual compensation does not exceed 120 percent of the maximum rate of basic pay for the Senior Executive Service, including any applicable locality-based comparability payment, based upon the Chief Operating Officer’s evaluation of the manager’s performance in relation to the goals set forth in the performance agreement.”.
(7) by inserting after subsection (e) the following:
“(f) Advisory board.—
“(1) ESTABLISHMENT AND PURPOSE.—Not later than one year after the date of the enactment of the PROSPER Act, the Secretary shall establish an Advisory Board (referred to in this subsection as the ‘Board’) for the PBO. The purpose of such Board shall be to conduct oversight over the PBO and the Chief Operating Officer and senior managers described under subsection (e) to ensure that the PBO is meeting the purposes described in this section and the goals in the performance plan described under such section.
“(2) MEMBERSHIP.—
“(B) CHAIRMAN.—A Chairman of the Board shall be elected by the Board from among its members for a 2-year term.
“(D) ADDITIONAL BOARD MEMBERS.—Each member of the Board (excluding the Secretary) shall be appointed by the Secretary.
“(E) TERMS.—
“(i) IN GENERAL.—Each Board member, except for the Secretary and the Board members described in clause (ii)(II), shall serve 5-year terms.
“(ii) INITIAL MEMBERS.—
“(iv) VACANCIES.—
“(I) IN GENERAL.—Not later than 30 days after a vacancy of the Board occurs, the Secretary shall publish a Federal Register notice soliciting nominations for the position.
“(F) MEMBERSHIP QUALIFICATIONS AND PROHIBITIONS.—
“(i) QUALIFICATIONS.—The members of the board, other than the Secretary, shall be appointed without regard to political affiliation and solely on the basis of their professional experience and expertise in—
“(ii) CONFLICTS OF INTEREST AMONG BOARD MEMBERS.—Before appointing members of the Board, the Secretary shall establish rules and procedures to address any potential conflict of interest between a member of the Board and responsibilities of the Board, including prohibiting membership for individuals with a pecuniary interest in the activities of the PBO.
“(3) BOARD RESPONSIBILITIES.—The Board shall have the following responsibilities:
“(A) Conducting general oversight over the functioning and operation of the PBO, including—
“(B) Approving the appointment or reappointment of a Chief Operating Officer, except that the board shall have no authority to approve or disapprove the reappointment of the Chief Operating Officer who holds such position on the date of enactment of the PROSPER Act.
“(C) Making recommendations with respect to the suitability of any bonuses proposed to be provided to the Chief Operating Officer or senior managers described under subsections (d) and (e), to ensure that a bonus is not awarded to the Officer or a senior manager in a case in which such Officer or manager has failed to meet goals set for them under the relevant performance plan under subsections (d)(4) and (e)(2), respectively.
“(4) BOARD OPERATIONS.—
“(A) MEETINGS.—The Board shall meet at least twice per year and at such other times as the chairperson determines appropriate.
“(B) POWERS OF CHAIRPERSON.—Except as otherwise provided by a majority vote of the Board, the powers of the chairperson shall include—
“(5) ANNUAL REPORT.—
“(A) IN GENERAL.—Not less frequently than once annually, the Board shall submit to the authorizing committees a report on the results of the work conducted by the PBO.
“(B) CONTENTS.—Each report under clause (i) shall include—
“(ii) a description of statutory requirements of this section and section 144 where the PBO is not in compliance;
“(iv) recommendations regarding bonus payments for the Chief Operating Officer and senior managers; and
“(v) recommendations for the authorizing Committees and the Appropriations Committees on—
“(C) STAFF.—
“(i) IN GENERAL.—The Secretary may appoint to the Board not more than 7 employees to assist in carrying out the duties of the Board under this section.
“(ii) TECHNICAL EMPLOYEES.—Such appointments may include, for terms not to exceed 3 years and without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, not more than 3 technical employees who may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, but no individual so appointed shall be paid in excess of the rate authorized for GS–18 of the General Schedule.
Part D of title I (20 U.S.C. 1018 et seq.) is amended by adding at the end the following:
“SEC. 144. Administrative data transparency.
“(a) In general.—To improve the transparency of the student aid delivery system, the Secretary and the Chief Operating Officer shall collect and publish information on the performance of student loan programs under title IV in accordance with this section.
“(b) Disclosures.—
“(1) IN GENERAL.—The Secretary and the Chief Operating Officer shall publish on a publicly accessible website of the Department of Education the following aggregate statistics with respect to the performance of student loans under title IV:
“(A) The number of borrowers who paid off the total outstanding balance of principal and interest on their loans before the end of the 10-year or consolidated loan repayment schedule.
“(D) The percentage of loans in default among borrowers who completed the program of study for which the loans were made.
“(E) The number of borrowers enrolled in an income-based repayment plan who make monthly payments of $0 and the average student loan debt of such borrowers.
“(F) The number of students whose loan balances are growing because such students are not paying the full amount of interest accruing on the loans.
“(H) The number of borrowers in income-based repayment plans who have outstanding student loans from graduate school, and the average balance of such loans.
“(I) With respect to the public service loan forgiveness program under section 455(m)—
“(iv) the number of borrowers granted loan forgiveness, and the amount of the loan debt forgiven, disaggregated by each category of employer that employs individuals in public service jobs (as defined in section 455(m)(3)(B), including—
“(II) an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; and
“(c) Information collection.—
“(1) IN GENERAL.—The Secretary and the Chief Operating Officer shall collect information on the performance of student loans under title IV over time, including—
“(A) measurement of the cash flow generated by such loans as determined by assessing monthly payments on the loans over time;
“(2) AVAILABILITY.—
“(A) IN GENERAL.—The information collected under paragraph (1) shall be made available biannually to organizations and researchers that—
“(B) PRIVACY PROTECTIONS.—The privacy laws described in this subparagraph are the following:
“(i) Section 183 of the Education Sciences Reform Act of 2002 (20 U.S.C. 9573).
“(ii) The Privacy Act of 1974 (5 U.S.C. 552a).
“(iii) Section 444 of the General Education Provisions Act (commonly known as the ‘Family Educational Rights and Privacy Act of 1974’) (20 U.S.C. 1232g).
“(iv) Subtitle A of title V of the E–Government Act of 2002 (44 U.S.C. 3501 note).
(a) Study.—The Comptroller General of the United States shall conduct a study on the impact of transferring the functions, in whole or in part, of the Office of Federal Student Aid from the Department of Education to the Department of the Treasury, which shall include—
(2) an analysis of how the responsibilities and operations of the Office of Federal Student Aid of the Department of Education overlaps with relevant responsibilities and operations at the Department of Treasury;
(b) Consultation.—In conducting the study under subsection (a), the Comptroller General of the United States shall consult with stakeholders, including institutions of higher education, financial aid administrators, and existing entities that contract with the Office of Federal Student Aid of the Department of Education, that may be impacted by the transfer studied under such subsection.
(c) Report.—Not later than 2 years after the date of the enactment of this Act, the Comptroller General of the United States shall complete the study under subsection (a) and submit a report to the House Committee on Education and the Workforce and the Senate Committee on Health, Education, Labor, and Pensions that includes the results of such study.
(a) In general.—Part E of title I (20 U.S.C. 1019 et seq.) is amended—
(2) in section 152 (20 U.S.C. 1019)—
(A) in subsection (a)(1)—
(i) in subparagraph (B), by amending clause (i) to read as follows:
“(i) make available to the prospective borrower on a website or with informational material, the information the Board of Governors of the Federal Reserve System requires the lender to provide to the covered institution under section 128(e)(11) of the Truth in Lending Act (15 U.S.C. 1638(e)(11)) for such loan;”; and
(ii) by adding at the end the following:
“(D) SPECIAL RULE.—Notwithstanding any other provision of law, a covered institution, or an institution-affiliated organization of such covered institution, shall not be required to provide any information regarding private education loans to prospective borrowers except for the information described in subparagraph (B).”; and
(3) in section 153 (20 U.S.C. 1019b)—
(B) by amending subsection (c) to read as follows:
“(c) Duties of covered institutions and institution-affiliated organizations.—
“(1) CODE OF CONDUCT.—Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall comply with the code of conduct requirements of subparagraphs (A) through (C) of section 487(a)(23).
“(2) APPLICABLE CODE OF CONDUCT.—For purposes of subparagraph (A), an institution-affiliated organization of a covered institution shall—
“(A) comply with the code of conduct developed and published by such covered institution under subparagraphs (A) and (B) of section 487(a)(23);
(4) in section 154 (20 U.S.C. 1019c)—
(A) in the section heading, by inserting before the period at the end the following: “or the Federal ONE Loan Program”;
(B) by striking “William D. Ford Direct Loan Program” each place it appears and inserting “William D. Ford Direct Loan Program or the Federal ONE Loan Program”
(b) Limitation.—The Secretary of Education shall not impose, administer, or enforce any requirements on a covered institution or an institution-affiliated organization of a covered institution relating to preferred lender lists or arrangements unless explicitly authorized by sections 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 1019b(c), or 1094(h), respectively) as amended by this Act.
Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end the following new part:
“The requirements of this part shall apply to any institution of higher education receiving Federal financial assistance under this Act, including financial assistance provided to students under title IV, other than—
“SEC. 162. Campus climate surveys.
“(a) Surveys to measure campus attitudes and climate regarding sexual assault and misconduct on campus.—Each institution of higher education that is subject to this part shall conduct surveys of its students to measure campus attitudes towards sexual assault and the general climate of the campus regarding the institution’s treatment of sexual assault on campus, and shall use the results of the survey to improve the institution’s ability to prevent and respond appropriately to incidents of sexual assault.
“(b) Contents.—The institution’s survey under this section shall consist of such questions as the institution considers appropriate, which may (at the option of the institution) include any of the following:
“(2) Questions on whether students who experience sexual assault report such incidents to campus officials or law enforcement agencies.
“(4) Questions to test the students’ knowledge and understanding of institutional policies regarding sexual assault and available campus support services for victims of sexual assault.
“(c) Other issues relating to the administration of surveys.—
“(1) MANDATORY CONFIDENTIALITY OF RESPONSES.—The institution shall ensure that all responses to surveys under this section are kept confidential and do not require the respondents to provide personally identifiable information.
“(2) ENCOURAGING USE OF BEST PRACTICES AND APPROPRIATE LANGUAGE.—The institution is encouraged to administer the surveys under this section in accordance with best practices derived from peer-reviewed research, and to use language that is sensitive to potential respondents who may have been victims of sexual assault.
“(d) Role of Secretary.—
“(1) DEVELOPMENT OF SAMPLE SURVEYS.—The Secretary, in consultation with relevant stakeholders, shall develop sample surveys that an institution may elect to use under this section, and shall post such surveys on a publicly accessible website of the Department of Education. The Secretary shall develop sample surveys that are suitable for the various populations who will participate in the surveys.
“(2) LIMIT ON OTHER ACTIVITIES.—In carrying out this section, the Secretary—
“SEC. 163. Survivors’ counselors.
“(a) Requiring institutions to make counselor available.—
“(1) IN GENERAL.—Each institution of higher education that is subject to this part shall retain the services of qualified sexual assault survivors’ counselors to counsel and support students who are victims of sexual assault.
“(2) USE OF CONTRACTORS PERMITTED.—At the option of the institution, the institution may retain the services of counselors who are employees of the institution or may enter into agreements with other institutions of higher education, victim advocacy organizations, or other appropriate sources to provide counselors for purposes of this section.
“(3) NUMBER.—The institution shall retain such number of counselors under this section as the institution considers appropriate based on a reasonable determination of the anticipated demand for such counselors’ services, so long as the institution retains the services of at least one such counselor at all times.
“(b) Qualifications.—A counselor is qualified for purposes of this section if the counselor has completed education specifically designed to enable the counselor to provide support to victims of sexual assault, and is familiar with relevant laws on sexual assault as well as the institution’s own policies regarding sexual assault.
“(c) Informing victims of available options and services.—In providing services pursuant to this section, a counselor shall—
“(d) Confidentiality.—
“(1) MAINTAINING CONFIDENTIALITY OF INFORMATION.—In providing services pursuant to this section, a counselor shall—
“(2) MAINTAINING PRIVACY OF RECORDS.—A counselor providing services pursuant to this section shall be considered a recognized professional for purposes of section 444(a)(4)(B)(iv) of the General Education Provisions Act (commonly known as the ‘Family Educational Rights and Privacy Act of 1974’) (20 U.S.C. 1232g(a)(4)(B)(iv)).
“(e) Limitations.—
“(1) NO REPORTING OF INCIDENTS UNDER CLERY ACT OR OTHER AUTHORITY.—A counselor providing services pursuant to this section is not required to report incidents of sexual assault that are reported to the counselor for inclusion in any report on campus crime statistics, and shall not be considered part of a campus police or security department for purposes of section 485(f).
“(2) NO COVERAGE OF COUNSELORS AS RESPONSIBLE EMPLOYEES UNDER TITLE IX.—A counselor providing services pursuant to this section on behalf of an institution of higher education shall not be considered a responsible employee of the institution for purposes of title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.) or the regulations promulgated pursuant to such title.
“(f) Notifications to Students.—Each institution of higher education that is subject to this part shall make a good faith effort to notify its students of the availability of the services of counselors pursuant to this section through the statement of policy described in section 485(f)(8)(B)(vi) and any other methods as the institution considers appropriate, including disseminating information through the institution’s website, posting notices throughout the campus, and including information as part of programs to educate students on sexual assault prevention and awareness.
“SEC. 164. Form to distribute to victims of sexual assault.
“(a) Requirement to develop and distribute form.—Each institution of higher education that is subject to this part shall develop a one-page form containing information to provide guidance and assistance to students who may be victims of sexual assault, and shall make the form widely available to students.
“(b) Contents of form.—The form developed under this section shall contain such information as the institution considers appropriate, and may include the following:
“(1) Information about the services of counselors which are available pursuant to section 163, including a statement that the counselor will provide the maximum degree of confidentiality permitted under law, and a brief description of the circumstances under which the counselor may be required to report information notwithstanding the victim’s desire to keep the information confidential.
“(2) Information about other appropriate campus resources and resources in the local community, including contact information.
“(3) Information about where to obtain medical treatment, and information about transportation services to such medical treatment facilities, if available.
“(6) Information about the victim’s right to request accommodations, and examples of accommodations that may be provided.
“(7) Information about the victim’s right to request that the institution begin an investigation of an allegation of sexual assault and initiate an institutional disciplinary proceeding if the alleged perpetrator of the assault is another student or a member of the faculty or staff of the institution.
“(c) Development of model forms.—The Secretary, in consultation with relevant stakeholders, shall develop model forms that an institution may use to meet the requirements of this section, and shall include in such model forms language which may accommodate a variety of State and local laws and institutional policies. Nothing in this subsection may be construed to require an institution to use any of the model forms developed under this subsection.
“SEC. 165. Memoranda of understanding with local law enforcement agencies.
“(a) Findings; Purpose.—
“(1) FINDINGS.—Because sexual assault is a serious crime, coordination and cooperation between institutions of higher education and law enforcement agencies are critical in ensuring that reports of sexual assaults on campus are handled in an appropriate and effective manner. A memorandum of understanding entered into between an institution and the law enforcement agency with primary jurisdiction for responding to reports of sexual assault on the institution’s campus is a useful tool to promote this coordination and cooperation.
“(2) PURPOSE.—It is the purpose of this section to encourage each institution of higher education that is subject to this part to enter into a memorandum of understanding with the law enforcement agency with primary jurisdiction for responding to reports of sexual assault on the institution’s campus so that reports of sexual assault on the institution’s campus may be handled in an appropriate and effective manner.
“(b) Contents of memorandum.—An institution of higher education and a law enforcement agency entering into a memorandum of understanding described in this section are encouraged to include in the memorandum provisions addressing the following:
“(1) An outline of the protocols and a delineation of responsibilities for responding to a report of sexual assault occurring on campus.
“(2) A clarification of each party’s responsibilities under existing Federal, State, and local law or policies.
“(3) The need for the law enforcement agency to know about institutional policies and resources so that the agency can direct student-victims of sexual assault to such resources.
“(4) The need for the institution to know about resources available within the criminal justice system to assist survivors, including the presence of special prosecutor or police units specifically designated to handle sexual assault cases.
“(5) If the institution has a campus police or security department with law enforcement authority, the need to clarify the relationship and delineate the responsibilities between such department and the law enforcement agency with respect to handling incidents of sexual assaults occurring on campus.
“In this part:
(a) Repeal.—Title II (20 U.S.C. 1021 et seq.) is repealed.
(b) Part A transition.—Part A of title II (20 U.S.C. 1022 et seq.), as in effect on the day before the date of the enactment of this Act, may be carried out using funds that have been appropriated for such part until September 30, 2018.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended by inserting after title I the following:
“SEC. 201. Apprenticeship grant program.
“(a) Purpose.—The purpose of this section is to expand student access to, and participation in, new industry-led earn-and-learn programs leading to high-wage, high-skill, and high-demand careers.
“(b) Authorization of apprenticeship grant program.—
“(1) IN GENERAL.—From the amounts authorized under subsection (j), the Secretary shall award grants, on a competitive basis, to eligible partnerships for the purpose described in subsection (a).
“(c) Matching funds.—To receive a grant under this section, an eligible partnership shall, through cash or in-kind contributions, provide matching funds from non-Federal sources in an amount equal to or greater than 50 percent of the amount of such grant.
“(d) Applications.—
“(1) IN GENERAL.—To receive a grant under this section, an eligible partnership shall submit to the Secretary at such a time as the Secretary may require, an application that—
“(A) identifies and designates the business or institution of higher education responsible for the administration and supervision of the earn-and-learn program for which such grant funds would be used;
“(B) identifies the businesses and institutions of higher education that comprise the eligible partnership;
“(D) identifies the number of students who will participate and complete the relevant earn-and-learn program within 1 year of the expiration of the grant;
“(E) identifies the amount of time, not to exceed 2 years, required for students to complete the program;
“(F) identifies the relevant recognized postsecondary credential to be awarded to students who complete the program;
“(H) describes the specific project for which the application is submitted, including a summary of the relevant classroom and paid structured on-the-job training students will receive;
“(I) describes how the eligible partnership will finance the program after the end of the grant period;
“(2) APPLICATION REVIEW PROCESS.—
“(A) REVIEW PANEL.—Applications submitted under paragraph (1) shall be read by a panel of readers composed of individuals selected by the Secretary. The Secretary shall assure that an individual assigned under this paragraph does not have a conflict of interest with respect to the applications reviewed by such individual.
“(B) COMPOSITION OF REVIEW PANEL.—The panel of reviewers selected by the Secretary under subparagraph (A) shall be comprised as follows:
“(i) A majority of the panel shall be individuals who are representative of businesses, which may include owners, executives with optimum hiring authority, or individuals representing business organizations or business trade associations.
“(ii) The remainder of the panel shall be equally divided between individuals who are—
“(I) representatives of institutions of higher education that offer programs of two years or less; and
“(II) representatives of State workforce development boards established under section 101 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3111).
“(C) REVIEW OF APPLICATIONS.—The Secretary shall instruct the review panel selected by the Secretary under paragraph (2)(A) to evaluate applications using only the criteria specified in paragraph (1) and make recommendations with respect to—
“(f) Use of funds.—Grant funds provided under this section may be used for—
“(1) the purchase of appropriate equipment, technology, or instructional material, aligned with business and industry needs, including machinery, testing equipment, hardware and software;
“(3) the reimbursement of up to 50 percent of the wages of a student participating in an earn-and-learn program receiving a grant under this section;
“(5) supporting the transition of industry-based professionals from an industry setting to an academic setting;
“(g) Technical assistance.—The Secretary may provide technical assistance to eligible partnerships awarded under this section throughout the grant period for purposes of grant management.
“(h) Evaluation.—
“(1) IN GENERAL.—From the amounts made available under subsection (j), the Secretary, acting through the Director of the Institute for Education Sciences, shall provide for the independent evaluation of the grant program established under this section that includes the following:
“(A) An assessment of the effectiveness of the grant program in expanding earn-and-learn program opportunities offered by employers in conjunction with institutions of higher education.
“(C) The percentage of students participating in programs assisted under this section who successfully completed the program in the time described in subsection (d)(1)(E).
“(i) Definitions.—In this section:
“(1) EARN-AND-LEARN PROGRAM.—The term ‘earn-and-learn program’ means an education program, including an apprenticeship program, that provides students with structured, sustained, and paid on-the-job training and accompanying, for credit, classroom instruction that—
“(3) IN-DEMAND INDUSTRY SECTOR OR OCCUPATION.—The term ‘in-demand industry sector or occupation’ has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
“(4) ON-THE-JOB TRAINING.—The term ‘on-the-job training’ has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
“(5) RECOGNIZED POSTSECONDARY CREDENTIAL.—The term ‘recognized postsecondary credential’ has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
Part A of title III (20 U.S.C. 1057 et seq.) is amended—
(2) in section 311—
(A) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively;
(B) in subsection (b) (as so redesignated)—
(i) by striking paragraph (6) and inserting the following:
“(6) Tutoring, counseling, advising, and student service programs designed to improve academic success, including innovative and customized instructional courses (which may include remedial education and English language instruction) designed to help retain students and move the students rapidly into core courses and through program completion.”;
(ii) in paragraph (8), by striking “acquisition of equipment for use in strengthening funds management” and inserting “acquisition of technology, services, and equipment for use in strengthening funds and administrative management”;
(iii) in paragraph (12), by striking “Creating” and all that follows through “technologies,” and inserting “Innovative learning models and creating or improving facilities for Internet or other innovative technologies,”;
(v) by inserting after paragraph (12) the following:
“(13) Establishing community outreach programs that will encourage elementary school and secondary school students to develop the academic skills and the interest to pursue postsecondary education.
“(14) The development, coordination, implementation, or improvement of career and technical education programs as defined in section 135 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2355).
“(15) Alignment and integration of career and technical education programs with programs of study leading to a bachelor’s degree, graduate degree, or professional degree.
(C) in subsection (c) (as so redesignated), by adding at the end the following:
“(4) SCHOLARSHIP.—An institution that uses grant funds provided under this part to establish or increase an endowment fund may use the income from such endowment fund to provide scholarships to students for the purposes of attending such institution, subject to the limitation in section 331(c)(3)(B)(i).”;
(3) in section 312—
(A) in subsection (a), by striking “transfers which the institution” and inserting “transfers that the institution”;
(B) in subsection (b)(1)—
(i) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (E), respectively (and by reordering such subparagraphs accordingly);
(5) in section 316—
(A) in subsection (c)—
(6) in section 317—
(A) in subsection (c)—
(7) in section 318—
(B) in subsection (d)—
(8) in section 319—
(A) in subsection (c)—
(9) in section 320—
(A) in subsection (c)—
(i) by striking paragraph (2) and inserting the following:
“(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—Such programs may include—
“(B) academic instruction in disciplines in which Asian Americans and Native American Pacific Islanders are underrepresented;
“(C) conducting research and data collection for Asian American and Native American Pacific Islander populations and subpopulations;
Part B of title III (20 U.S.C. 1060 et seq.) is amended—
(1) in section 323—
(A) by striking subsection (a) and inserting the following :
“(a) Authorized activities.—From amounts available under section 399(a)(2) for any fiscal year, the Secretary shall make grants (under section 324) to institutions which have applications approved by the Secretary (under section 325) for any of the following uses:
“(4) Establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that shall include, as part of such program, preparation for teacher certification.
“(5) Acquisition of real property in connection with the construction, renovation, or addition to or improvement of campus facilities.
(3) in section 326—
(A) by striking subsection (b) and inserting the following:
“(b) Duration.—The Secretary may award a grant to an eligible institution under this part for a period of 5 years. Any funds awarded under this section that are not expended or used for the purposes for which the funds were paid within 10 years following the date on which the grant was awarded, shall be repaid to the Treasury.”;
(B) by striking subsection (c) and inserting the following:
“(c) Authorized activities.—A grant under this section may be used for—
“(1) the activities described in paragraphs (1) through (12), (14) through (15), and (17) of section 311(b);
“(2) scholarships, fellowships, and other financial assistance for needy graduate and professional students to permit the enrollment of the students in and completion of the doctoral degree in medicine, dentistry, pharmacy, veterinary medicine, law, and the doctorate degree in the physical or natural sciences, engineering, mathematics, or other scientific disciplines in which African Americans are underrepresented;
“(3) acquisition of real property that is adjacent to the campus in connection with the construction, renovation, or addition to or improvement of campus facilities;
Part D of title III (20 U.S.C. 1066 et seq.) is amended—
(1) in section 343—
(A) in subsection (b)—
(ii) in paragraph (8)—
(iii) in paragraph (9)—
(iv) in subsection (c)—
(I) in paragraph (2), by striking “the escrow account described in subsection (b)(8)” and inserting “the bond insurance fund described in subsection (b)(8) and the escrow account described in subsection (f)(1)(B)”;
(v) by adding at the end the following:
“(f) Applicability of bond insurance fund and escrow account and special rules.—
“(1) APPLICABILITY OF BOND INSURANCE FUND AND ESCROW ACCOUNT.—Except as provided in paragraph (2)—
“(2) SPECIAL RULES.—Notwithstanding paragraph (1)—
“(A) in a case in which the amount in the bond insurance fund described in paragraph (1)(A) is insufficient to make payments of principal and interest on bonds under subsection (b)(8)(B)(i) in the event of delinquency in loan repayment on loans made under this part on or after the date of enactment of the PROSPER Act, amounts in the escrow fund described in paragraph (1)(B) shall be made available to the Secretary to make such payments;
“(B) in a case in which the amount in the escrow account described in paragraph (1)(B) is insufficient to make payments of principal and interest on bonds under subsection (b)(8)(B)(i) in the event of delinquency in loan repayment on loans made under this part before the date of enactment of the PROSPER Act, amounts in the bond insurance fund described in paragraph (1)(A) shall be made available to the Secretary to make such payments; and
“(C) in a case in which an institution is required to return an amount equal to any remaining portion of such institution’s 5 percent deposit of loan proceeds under subsection (b)(8)(B)(ii), the institution shall return to the escrow account and the bond insurance fund an amount that is proportionate to the amount that was withdrawn from the escrow account and the bond insurance fund, respectively, by such institution.”;
(3) in section 347(c), by striking paragraph (2) and inserting the following:
“(2) REPORT.—On an annual basis, the Advisory Board shall prepare and submit to the authorizing committees a report on the status of the historically Black colleges and universities described in paragraph (1)(A) and an overview of all loans in the capital financing program, including the most recent loans awarded in the fiscal year in which the report is submitted. The report shall include administrative and legislative recommendations, as needed, for addressing the issues related to construction financing facing historically Black colleges and universities.”.
Part E of title III (20 U.S.C. 1067 et seq.) is amended—
(3) by redesignating subpart 3 as subpart 2 and redesignating sections 361 through 365 as sections 355 through 359, respectively;
Section 371 (20 U.S.C. 1067q) is amended—
Part G of title III (20 U.S.C. 1068 et seq.) is amended—
(1) in section 391(b)—
(A) in paragraph (1), by striking “institutional management” and all that follows through the semicolon at the end and inserting “institutional management, and use the grant to provide for, and lead to, institutional self-sustainability and growth (including measurable objectives for the institution and the Secretary to use in monitoring the effectiveness of activities under this title);”;
(B) in paragraph (7)—
(2) in section 392—
(B) by striking subsection (c) and inserting the following:
“(c) Waiver authority with respect to institutions located in an area affected by a major disaster.—
“(1) WAIVER AUTHORITY.—Notwithstanding any other provision of law, unless enacted with specific reference to this section, in the case of a major disaster, the Secretary may waive for affected institutions—
“(2) DEFINITIONS.—In this subsection:
“(A) AFFECTED INSTITUTION.—The term ‘affected institution’ means an institution of higher education that—
“(i) is—
“(B) MAJOR DISASTER.—The term ‘major disaster’ has the meaning given such term in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).”; and
(3) in section 399, by striking subsection (a) and inserting the following:
“(a) Authorizations.—
“(1) PART A.— (A) There are authorized to be appropriated to carry out section 316, $27,599,000 for each of fiscal years 2019 through 2024.
“(B) There are authorized to be appropriated to carry out section 317, $13,802,000 for each of fiscal years 2019 through 2024.
“(C) There are authorized to be appropriated to carry out section 318, $9,942,000 for each of fiscal years 2019 through 2024.
“(2) PART B.— (A) There are authorized to be appropriated to carry out part B (other than section 326), $244,694,000 for each of fiscal years 2019 through 2024.
(a) Reauthorization.—Section 401(a)(1) (20 U.S.C. 1070a(a)(1)) is amended—
(b) Federal Pell Grant bonus.—
(1) AMENDMENTS.—Section 401(b) (20 U.S.C. 1070a(b)) is amended—
(B) by adding at the end the following:
“(9) FEDERAL PELL GRANT BONUS.—
“(A) IN GENERAL.—Notwithstanding any other provision of this subsection and from the amounts made available pursuant to paragraph (7)(A)(iii) for the purposes of this paragraph, an eligible student who is receiving a Federal Pell Grant for an award year shall receive an amount in addition to such Federal Pell Grant for each payment period of such award year for which the student—
“(i) is receiving such Federal Pell Grant as long as the amount of such Federal Pell Grant does not exceed the maximum amount of a Federal Pell Grant award determined under paragraph (2)(A) for such award year; and
(c) Period of Eligibility for Grants.—Section 401(c) (20 U.S.C. 1070a(c)) is amended by adding at the end the following:
“(6) (A) The Secretary shall issue to each student receiving a Federal Pell Grant, an annual status report which shall—
“(i) inform the student of the remaining period during which the student may receive Federal Pell Grants in accordance with paragraph (5), and provide access to a calculator to assist the student in making such determination;
“(ii) include an estimate of the Federal Pell Grant amounts which may be awarded for such remaining period based on the student’s award amount determined under subsection (b)(2)(A) for the most recent award year;
(d) Distribution of grants to students.—Section 401(e) (20 U.S.C. 1070a(e)) is amended by striking the first sentence and inserting “Payments under this section shall be made in the same manner as disbursements under section 465(a).”.
(e) Institutional ineligibility based on default rates.—Section 401(j) of such Act (20 U.S.C. 1070a(j)) is amended by adding at the end the following:
(f) Prevention of fraud.—Section 401 (20 U.S.C. 1070a) is amended by adding at the end the following:
“(k) Prevention of fraud.—
“(1) PROHIBITION OF AWARDS.—
“(B) WAIVER.—The student financial aid administrator at an institution of higher education may waive the requirement of subparagraph (A) for a student, if the financial aid administrator—
“(2) SECRETARIAL DISCRETION TO STOP AWARDS.—With respect to a student who receives a disbursement of a Federal Pell Grant for a payment period of an award year and whom the Secretary determines has had an unusual enrollment history, the Secretary may prevent such student from receiving any additional disbursements of such Federal Pell Grant for such award year until the student financial aid administrator at the student’s institution of higher education determines that the student’s enrollment history should not be considered an unusual enrollment history.”.
(g) Report on costs of Federal Pell Grant program.—Section 401 (20 U.S.C. 1070a), as amended by subsections (a) through (f), is further amended by adding at the end the following:
“(l) Report on costs of Federal Pell Grant program.—Not later than October 31 of each year, the Secretary shall prepare and submit a report to the authorizing committees that includes the following information with respect to spending for the Federal Pell Grant program for the preceding fiscal year:
“(2) A comparison of the total obligations and expenditures for the program for such fiscal year—
“(B) in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for the program included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.
“(3) The total obligations and expenditures for the maximum Federal Pell Grant for which a student is eligible, as specified in the last enacted appropriation Act applicable to such fiscal year.
“(4) A comparison of the total obligations and expenditures for the maximum Federal Pell Grant for which a student is eligible, as specified in the last enacted appropriation Act applicable to such fiscal year—
“(A) to the most recently available Congressional Budget Office baseline for such maximum Federal Pell Grant; and
“(B) in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for such maximum Federal Pell Grant included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.
“(5) The total mandatory obligations and expenditures for the amount of the increase in such maximum Federal Pell Grant required by subsection (b)(7)(B) for such fiscal year.
“(6) A comparison of the total mandatory obligations and expenditures for the amount of the increase in such maximum Federal Pell Grant required by subsection (b)(7)(B)—
“(B) in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for the increase included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.
“(7) The total mandatory obligations and expenditures for the Federal Pell Grant Bonus required by subsection (b)(9) for such fiscal year.
“(8) A comparison of the total mandatory obligations and expenditures for the Federal Pell Grant Bonus required by subsection (b)(9) for such fiscal year—
“(B) in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for such bonus included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.”.
(h) Study on Federal Pell Grant Bonus.—Section 401 (20 U.S.C. 1070a), as amended by subsections (a) through (g), is further amended by adding at the end the following:
“(m) Report and study on Federal Pell Grant Bonus.—
“(1) REPORT.—
“(A) IN GENERAL.—The Secretary shall report annually, in accordance with subparagraph (C), on the Federal Pell Grant Bonus required by subsection (b)(9).
“(B) ELEMENTS.—Each report required under subparagraph (A) shall include an assessment of the following:
“(2) STUDY.—Not later than 18 months after the date of the submission of the initial report under paragraph (1)(C)(i), the Comptroller General of the United States shall complete a study on the impact of the Federal Pell Grant Bonus required under subsection (b)(9). The study shall include an assessment of the following:
“(A) Of the students who received the Federal Pell Grant Bonus, the number of such students who had a lower volume of student loans upon completion of their program of study compared to students who received a Federal Pell Grant but did not receive the Federal Pell Grant Bonus.
(a) Program authority; authorization of appropriations.—Section 402A (20 U.S.C. 1070a–11) is amended—
(1) in subsection (c)—
(A) by amending subparagraph (A) of paragraph (2) to read as follows:
“(A) ACCOUNTABILITY FOR OUTCOMES.—In making grants under this chapter, the Secretary shall comply with the following requirements:
“(i) The Secretary shall consider each applicant's prior success in achieving high quality service delivery, as determined under subsection (f), under the particular program for which funds are sought. The level of consideration given the factor of prior success in achieving high quality service delivery shall not vary from the level of consideration given such factor during fiscal years 1994 through 1997, except that grants made under section 402H shall not be given such consideration.
“(ii) The Secretary shall not give points for prior success in achieving high quality service delivery to any current grantee that, during the then most recent period for which funds were provided, did not meet or exceed two or more objectives established in the eligible entity’s application based on the performance measures described in subsection (f).
“(iii) From the amounts awarded under subsection (g) for a program under this chapter (other than a program under sections 402G and 402H) for any fiscal year in which the Secretary conducts a competition for the award of grants or contracts under such programs, the Secretary shall reserve not less than 10 percent of such available amount to award grants or contracts to applicants who have not previously received a grant or contract under this chapter. If the Secretary determines that there are an insufficient number of qualified applicants to use the full amount reserved under the preceding sentence, the Secretary shall use the remainder of such amount to award grants or contracts to applicants who have previously received a grant or contract under this chapter.”;
(B) in paragraph (3)—
(iii) by inserting after subparagraph (A) the following new subparagraph:
“(B) To ensure that congressional priorities in conducting competitions for grants and contracts under this chapter are implemented, the Secretary shall not impose additional criteria for the prioritization of applications for such grants or contracts (including additional competitive, absolute, or other criteria) beyond the criteria described in this chapter.”;
(C) in paragraph (6)—
(i) by striking the period at the end of the second sentence and inserting “, as long as the program is serving a different population or a different campus.”;
(ii) by striking “the programs authorized by” and inserting “sections 402B, 402C, 402D, and 402F of”;
(E) in paragraph (8)—
(i) in subparagraph (A)—
(I) in the matter preceding clause (i), by striking “Not later than 180 days after the date of enactment of the Higher Education Opportunity Act,” and inserting “Not later than 90 days before the commencement of each competition for a grant under this chapter,”;
(F) by adding at the end the following:
“(9) MATCHING REQUIREMENT.—
“(A) IN GENERAL.—The Secretary shall not approve an application submitted under section 402B, 402C, 402D, 402E, or 402F unless such application—
“(i) provides that the eligible entity will provide, from State, local, institutional, or private funds, not less than 20 percent of the cost of the program, which matching funds may be provided in cash or in kind and may be accrued over the full duration of the grant award period, except that the eligible entity shall make substantial progress towards meeting the matching requirement in each year of the grant award period;
“(B) SPECIAL RULE.—Notwithstanding the matching requirement described in subparagraph (A), the Secretary may by regulation modify the percentage requirement described in subparagraph (A). The Secretary may approve an eligible entity's request for a reduced match percentage—
“(i) at the time of application if the eligible entity demonstrates significant economic hardship that precludes the eligible entity from meeting the matching requirement; or
“(ii) in response to a petition by an eligible entity subsequent to a grant award under section 402B, 402C, 402D, 402E, or 402F if the eligible entity demonstrates that the matching funds described in its application are no longer available and the eligible entity has exhausted all revenues for replacing such matching funds.”.
(2) in subsection (d)(3), by adding at the end the following new sentence: “In addition, the Secretary shall host at least one virtual, interactive education session using telecommunications technology to ensure that any interested applicants have access to technical assistance.”;
(4) in subsection (f)—
(A) in the heading of paragraph (1), by striking “prior experience” and inserting “accountability for outcomes”;
(C) in paragraph (3)—
(i) in subparagraph (A)—
(I) in clause (iv) by striking “rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program” and inserting “secondary school program of study that will prepare such students to enter postsecondary education without the need for remedial education”;
(ii) in subparagraph (B)—
(I) by redesignating clauses (i), (ii), (iii), (iv), (v), (vi), and (vii) as subclauses (I), (II), (III), (IV), (VI), (VIII), and (IX), respectively;
(III) in subclause (VI), as so redesignated, by striking “rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program” and inserting “secondary school program of study that will prepare such students to enter postsecondary education without the need for remedial education”;
(V) by striking “(B) For programs authorized under section 402C,” and inserting “(B)(i) For programs authorized under section 402C, except in the case of projects that specifically target veterans,”; and
(VI) by adding at the end the following new clause:
“(ii) For programs authorized under section 402C that specifically target veterans, the extent to which the eligible entity met or exceeded the entity’s objectives for such program with respect to—
“(I) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period;
(iii) in subparagraph (C)(ii)—
(I) in subclause (I), by striking “in which such students were enrolled” and inserting “within six years of the initial enrollment of such students in the program”;
(5) in subsection (g)—
(A) in the first sentence, by striking “$900,000,000 for fiscal year 2009 and such sums as may be necessary for” and inserting “$900,000,000 for fiscal year 2019 and”;
(b) Talent search.—Section 402B (20 U.S.C. 1070a–12) is amended—
(2) in subsection (b)—
(A) in paragraph (1), by inserting “and, where necessary, remedial education services” after “academic tutoring services”; and
(B) by striking paragraph (6) and inserting the following:
(c) Upward bound.—Section 402C (20 U.S.C. 1070a–13) is amended—
(1) in subsection (b)—
(C) by striking paragraphs (5) and (6) and inserting the following:
(2) in subsection (d)—
(3) in subsection (e)—
(D) in paragraph (6), as so redesignated, by striking the period at the end and inserting “; and”; and
(E) by adding at the end the following:
“(7) for purposes of minimizing the duplication of services, require that the grantee maintain, to the extent practicable, a record of any services received by participants during the program year from another program funded under this chapter, or any other Federally funded program that serves populations similar to the populations served by programs under this chapter.”.
(d) Student support services.—Section 402D (20 U.S.C. 1070a–14) is amended—
(1) in subsection (a)(3), by inserting “low-income and first generation college students, including” after “success of”;
(e) Postbaccalaureate Achievement Program Authority.—Section 402E (20 U.S.C. 1070a–15) is amended—
(1) in subsection (b)(2), by striking “summer internships” and inserting “internships and faculty-led research experiences”; and
(f) Educational opportunity centers.—Section 402F (20 U.S.C. 1070a–16) is amended—
(g) Staff development activities.—Section 402G(b) (20 U.S.C. 1070a–17(b)) is amended—
(h) Reports, evaluations, and grants for project improvement and dissemination.—Subsection (b) of section 402H (20 U.S.C. 1070a–18) is amended to read as follows:
“(b) Evaluations.—
“(1) IN GENERAL.—For the purpose of improving the effectiveness of the programs assisted under this chapter, the Secretary shall make grants to or enter into contracts with one or more organizations to—
“(2) ISSUES TO BE EVALUATED.—The evaluations described in paragraph (1) shall measure the effectiveness of programs funded under this chapter in—
“(A) meeting or exceeding the stated objectives regarding the outcome criteria under subsection (f) of section 402A;
“(B) enhancing the access of low-income individuals and first-generation college students to postsecondary education;
“(D) comparing the level of education completed by students who participate in the programs funded under this chapter with the level of education completed by students of similar backgrounds who do not participate in such programs;
“(3) PROGRAM METHODS.—Such evaluations shall also investigate the effectiveness of alternative and innovative methods within programs funded under this chapter of increasing access to, and retention of, students in postsecondary education.
“(4) RESULTS.—The Secretary shall submit to the authorizing committees—
“(5) PUBLIC AVAILABILITY.—All reports and underlying data gathered pursuant to this subsection shall be made available to the public upon request, in a timely manner following submission of the applicable reports under this subsection, except that any personally identifiable information with respect to a student participating in a program or project assisted under this chapter shall not be disclosed or made available to the public.”.
(i) IMPACT grants.—Part A of title IV (20 U.S.C. 1070 et seq.) is amended by inserting after section 402H (20 U.S.C. 1070a–28) the following:
“(a) In general.—From funds reserved under subsection (e), the Secretary shall make grants to improve postsecondary access and completion rates for qualified individuals from disadvantaged backgrounds. These grants shall be known as innovative measures promoting postsecondary access and completion grants or ‘IMPACT Grants’ and allow eligible entities to—
“(b) Description of grants.—The grants described in subsection (a) shall include—
“(1) early-phase grants to fund the development, implementation, and feasibility testing of a program, which prior research suggests has a promise, for the purpose of determining whether the program can successfully improve postsecondary access and completion rates;
“(2) mid-phase grants to fund implementation and a rigorous evaluation of a program that has been successfully implemented under an early-phase grant described in paragraph (1); and
“(c) Requirements for Approval of Applications.—To receive a grant under this section, an eligible entity shall submit an application to the Secretary at such time, and in such manner as the Secretary may require, which shall include—
“(1) an assurance that not less than two-thirds of the individuals who will participate in the program proposed to be carried out with the grant will be—
“(2) an assurance that any other individuals (not described in paragraph (1)) who will participate in such proposed program will be—
(a) Early intervention and college awareness program.—Section 404A (20 U.S.C. 1070a–21) is amended—
(1) in subsection (a)(1), by striking “academic support” and inserting “academic support for college readiness”;
(b) Applications.—Section 404C (20 U.S.C. 1070a–23) is amended—
(1) in subsection (a)—
(A) in paragraph (2)—
(ii) by amending subparagraph (B) to read as follows:
“(B) describe, in the case of an eligible entity described in section 404A(c)(2) that chooses to provide scholarships, or an eligible entity described in section 404A(c)(1)—
(2) in subsection (b), by striking paragraph (2) and inserting the following:
“(2) SPECIAL RULE.—Notwithstanding the matching requirement described in paragraph (1)(A), the Secretary may—
“(A) at the time of application—
“(i) approve a Partnership applicant’s request for a waiver of up to 75 percent of the matching requirement for up to two years if the applicant demonstrates in its application a significant economic hardship that stems from a specific, exceptional, or uncontrollable event, such as a natural disaster, that has a devastating effect on the members of the Partnership and the community in which the project would operate;
“(ii) (I) approve a Partnership applicant’s request to waive up to 50 percent of the matching requirement for up to two years if the applicant demonstrates in its application a pre-existing and an on-going significant economic hardship that precludes the applicant from meeting its matching requirement; and
“(iii) approve a Partnership applicant’s request in its application to match its contributions to its scholarship fund, established under section 404E, on the basis of two non-Federal dollars for every one dollar of Federal funds provided under this chapter; or
“(iv) approve a request by a Partnership applicant that has three or fewer institutions of higher education as members to waive up to 70 percent of the matching requirement if the Partnership applicant includes—
“(I) a fiscal agent that is eligible to receive funds under title V, or part B of title III, or section 316 or 317, or a local educational agency;
“(B) after a grant is awarded, approve a Partnership grantee’s written request for a waiver of up to—
“(i) 50 percent of the matching requirement for up to two years if the grantee demonstrates that—
“(ii) 75 percent of the matching requirement for up to two years if the grantee demonstrates that matching contributions from the original application are no longer available due to an uncontrollable event, such as a natural disaster, that has a devastating economic effect on members of the Partnership and the community in which the project would operate.
“(3) ADDITIONAL TERMS.—
“(A) ON-GOING ECONOMIC HARDSHIP.—In determining whether a Partnership applicant is experiencing an on-going economic hardship that is significant enough to justify a waiver under subparagraphs (A)(i) and (A)(ii)(I) of paragraph (2), the Secretary may consider documentation of the following:
“(i) Severe distress in the local economy of the community to be served by the grant (e.g., there are few employers in the local area, large employers have left the local area, or significant reductions in employment in the local area).
“(iii) Low or decreasing revenues for State and County governments in the area to be served by the grant.
“(B) EXHAUSTION OF FUNDS.—In determining whether a Partnership grantee has exhausted all funds and sources of potential contributions for replacing matching funds under paragraph (2)(B), the secretary may consider the grantee’s documentation of key factors that have had a direct impact on the grantee such as the following:
“(i) A reduction of revenues from State government, County government, or the local educational agency.
“(iii) Significant reductions in the operating budgets of institutions of higher education that are participating in the grant.
“(C) RENEWAL OF WAIVER.—A Partnership applicant that receives a tentative approval of a waiver under subparagraph (A)(ii)(II) of paragraph (2) for more than two years under this paragraph must submit to the Secretary every two years by such time as the Secretary may direct documentation that demonstrates that—
(c) Activities.—Section 404D (20 U.S.C. 1070a–24) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking “financial aid for” and inserting “financial aid, including loans, grants, scholarships, and institutional aid for”;
(B) in paragraph (2) by striking “rigorous and challenging curricula and coursework, in order to” and inserting “curricula and coursework designed to”;
(2) in subsection (b)—
(D) in paragraph (9), as so redesignated—
(iii) in subparagraph (I), as so redesignated, by striking “skills assessments” and inserting “skills, cognitive, non-cognitive, and credit-by-examination assessments”;
(d) Scholarship requirements.—Section 404E (20 U.S.C. 1070a–25) is amended—
(e) Evaluation and report.—Section 404G(b) (20 U.S.C. 1070a–27(b)) is amended—
(f) Authorization of appropriations.—Section 404H (20 U.S.C. 1070a–28) is amended by striking “$400,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years” and inserting “$339,754,000 for fiscal year 2019 and each of the five succeeding fiscal years”.
Section 418A(i) (20 U.S.C. 1070d—2(i)) is amended by striking “$75,000,000” and all that follows through the period at the end and inserting “$44,623,000 for each of fiscal years 2019 through 2024.”.
Section 419N (20 U.S.C. 1070e) is amended—
(1) in the heading of paragraph (6) of subsection (b), by striking “Construction” and inserting “Rule of construction”; and
(2) in subsection (c)—
(4) by amending subsection (e) to read as follows:
“(e) Reporting requirements; continuing eligibility.—
“(1) REPORTING REQUIREMENTS.—
“(A) REPORTS.—Each institution of higher education receiving a grant under this section shall report to the Secretary annually. The Secretary shall annually publish such reports on a publicly accessible website of the Department of Education.
“(B) CONTENTS.—Each report shall include—
“(i) data on the population served under this section, including the total number of children and families served;
“(ii) information on sources of campus and community resources and the amount of non-Federal funding used to help low-income students access child care services on campus;
“(2) CONTINUING ELIGIBILITY.—The Secretary shall make continuation awards under this section to an institution of higher education only if the Secretary determines, on the basis of the reports submitted under paragraph (1) and the application from the institution, that the institution is—
(a) Academic competitiveness grants.—Section 401A (20 U.S.C. 1070a–1) is repealed.
(b) Federal Supplemental Educational Opportunity Grants.—
(1) REPEAL.—Subpart 3 of part A of title IV (20 U.S.C. 1070b et seq.) is repealed.
(c) Leveraging Educational Assistance Partnership Program.—Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is repealed.
(d) Robert C. Byrd Honors Scholarship Program.—Subpart 6 of part A of title IV (20 U.S.C. 1070d–31 et seq.) is repealed.
Subpart 9 of part A of title IV (20 U.S.C. 1070g) is amended—
(1) in section 420L(1) (20 U.S.C. 1070g(1), by striking “section 102” and inserting “section 102 (as in effect on the day before the date of enactment of the PROSPER Act)”;
(2) in section 420N (20 U.S.C. 1070g–2)—
(A) by amending subparagraph (B) of subsection (b)(1) to read as follows:
“(B) teach—
“(i) in a public or other nonprofit private elementary school or secondary school, which, for the purpose of this paragraph and for that year—
“(I) has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the school is located) to be a school in which the number of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), exceeds 30 percent of the total number of children enrolled in such school; and
“(II) is in the school district of a local educational agency which is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.); or
“(ii) in one or more public, or nonprofit private, elementary schools or secondary schools or locations operated by an educational service agency that have been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the educational service agency operates) to be a school or location at which the number of children taught who meet a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), exceeds 30 percent of the total number of children taught at such school or location;”; and
(3) in section 420M(a) (20 U.S.C. 1070g–1), by adding at the end the following:
“(3) TERMINATION.—
“(A) TERMINATION OF PROGRAM AUTHORITY.—Except as provided in paragraph (4), no new grants may be made under this subpart after June 30, 2018.
“(4) STUDENT ELIGIBILITY BEGINNING WITH AWARD YEAR 2018.—With respect to a recipient of a grant under this subpart for which the first disbursement was made on or before June 30, 2018, such recipient may receive additional grants under this subpart until the earlier of—
(4) in section 420O (20 U.S.C. 1070g–3)—
Section 428C (20 U.S.C. 1078–3) is amended—
(1) in subsection (a)(4)(B), by inserting before the semicolon at the end “, as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act”; and
(2) in subsection (b)(1)(F)(ii)—
(A) in the matter preceding subclause (I), by inserting “, as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act” after “part E”;
Section 428F(a)(5) (20 U.S.C. 1078–6) is amended by striking “one time” and inserting “two times”.
Section 428J(b)(1)(A) (20 U.S.C. 1078–10(b)(1)(A)) is amended by striking “that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools or locations” and inserting “described in section 420N(b)(1)(B)”.
Section 428K (20 U.S.C. 1078–11) is amended—
(1) in subsection (b)—
(A) in paragraph (4)(B), by striking “that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school” and inserting “described in section 420N(b)(1)(B)”;
(B) in paragraph (5)(B)(ii), by striking “that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school” and inserting “described in section 420N(b)(1)(B)”;
(C) in paragraph (7)(A), by striking “that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school” and inserting “described in section 420N(b)(1)(B)”;
Section 428L(b)(2)(A) (20 U.S.C. 1078–12(b)(2)(A)) is amended—
(a) Requirements for the Secretary.—Section 430(e) (20 U.S.C. 1080(e)) is amended by adding at the end the following:
(b) Eligible institution defined.—Section 435 (20 U.S.C. 1085) is amended—
(2) in subsection (m), by adding at the end the following:
“(5) TRANSITION PERIOD; SUNSET.—
“(A) TRANSITION PERIOD.—During the transition period, the cohort default rate for an institution shall be calculated in the manner described in section 481B(e)(1).
Section 433(a) (20 U.S.C. 1083(a)) is amended—
(1) in the matter preceding paragraph (1), by striking the second sentence and inserting “Any disclosure required by this subsection shall be made on the Plain Language Disclosure Form developed by the Secretary under section 455(p).”;
Section 437(c) (20 U.S.C. 1087) is amended—
(1) in paragraph (1), by inserting “and the borrower meets the applicable requirements of paragraphs (6) through (8),” after “such student’s lender,”;
(2) in paragraph (4), by inserting before the period at the end “, as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act”; and
(3) by adding at the end the following:
“(6) BORROWER QUALIFICATIONS FOR A CLOSED SCHOOL DISCHARGE.—
“(A) IN GENERAL.—In order to qualify for the discharge of a loan under this subsection due to the closure of the institution in which the borrower was enrolled, a borrower shall submit to the Secretary a written request and sworn statement—
“(iii) under which the borrower (or the student on whose behalf a parent borrowed) states—
“(I) that the borrower or the student—
“(aa) received, on or after January 1, 1986, the proceeds of a loan made, insured, or guaranteed under this title to attend a program of study at an institution of higher education;
“(bb)(AA) did not complete the program of study because the institution closed while the student was enrolled; or
“(BB) the student withdrew from the institution not more than 120 days before the institution closed, or in the case of exceptional circumstances described in subparagraph (B), not more than the period by which such 120-day period is extended under such subparagraph; and
“(II) whether the borrower (or the student) has made a claim with respect to the institutions’s closing with any third party, such as the holder of a performance bond or a tuition recovery program, and, if so, the amount of any payment received by the borrower (or the student) or credited to the borrower’s loan obligation; and
“(B) EXCEPTIONAL CIRCUMSTANCES.—
“(i) IN GENERAL.—The Secretary may extend the 120-day period described in subparagraph (A)(iii)(I)(bb)(BB) if the Secretary determines that exceptional circumstances related to an institution’s closing justify an extension.
“(ii) DEFINITION.—For purposes of this subsection, the term ‘exceptional circumstances’, when used with respect to an institution that closed, includes the loss of accreditation of institution, the institutions’s discontinuation of the majority of its academic programs, action by the State to revoke the institution’s license to operate or award academic credentials in the State, or a finding by a State or Federal Government agency that the institution violated State or Federal law.
“(C) COOPERATION BY BORROWER IN ENFORCEMENT ACTIONS.—
“(i) IN GENERAL.—In order to obtain a discharge described in subparagraph (A), a borrower shall cooperate with the Secretary in any judicial or administrative proceeding brought by the Secretary to recover amounts discharged or to take other enforcement action with respect to the conduct on which the discharge was based. At the request of the Secretary and upon the Secretary's tendering to the borrower the fees and costs that are customarily provided in litigation to reimburse witnesses, the borrower shall—
“(I) provide testimony regarding any representation made by the borrower to support a request for discharge;
“(D) TRANSFER TO THE SECRETARY OF BORROWER'S RIGHT OF RECOVERY AGAINST THIRD PARTIES.—
“(i) IN GENERAL.—Upon receiving a discharge described in subparagraph (A) of a loan, the borrower shall be deemed to have assigned to and relinquished in favor of the Secretary any right to a loan refund for such loan (up to the amount discharged) that the borrower (or student) may have by contract or applicable law with respect to the loan or the enrollment agreement for the program for which the loan was received, against the institution, its principals, its affiliates and their successors, its sureties, and any private fund, including the portion of a public fund that represents funds received from a private party.
“(ii) APPLICATION.—The provisions of this subsection apply notwithstanding any provision of State law that would otherwise restrict transfer of such rights by the borrower (or student), limit, or prevent a transferee from exercising such rights, or establish procedures or a scheme of distribution that would prejudice the Secretary's ability to recover on such rights.
“(E) DISCHARGE PROCEDURES.—
“(i) IN GENERAL.—After confirming the date of an institution's closure, the Secretary shall identify any borrower (or student on whose behalf a parent borrowed) who appears to have been enrolled at the institution on the closure date of the institution or to have withdrawn not more than 120 days prior to the closure date (or in the case of exceptional circumstances described in subparagraph (B), not more than the period by which such 120-day period is extended under such subparagraph. In the case of a loan made, insured, or guaranteed under this part, a guaranty agency shall notify the Secretary immediately whenever it becomes aware of reliable information indicating an institution may have closed.
“(ii) BORROWER ADDRESS.—
“(I) KNOWN.—If the borrower's current address is known, the Secretary shall mail the borrower a discharge application and an explanation of the qualifications and procedures for obtaining a discharge. The Secretary or the guaranty agency shall promptly suspend any efforts to collect from the borrower on any affected loan. The Secretary may continue to receive borrower payments of the loan for which the discharge application has been filed.
“(II) UNKNOWN.—If the borrower's current address is unknown, the Secretary shall attempt to locate the borrower and determine the borrower's potential eligibility for a discharge described in subparagraph (A) by consulting with representatives of the closed institution, the institution's licensing agency, the institution's accrediting agency, and other appropriate parties. If the Secretary learns the new address of a borrower, the Secretary shall mail to the borrower a discharge application and explanation, and shall suspend collection on the loan, as described in subclause (I).
“(iii) SWORN STATEMENT.—If a borrower fails to submit the written request and sworn statement described subparagraph (A) not later than 60 days after date on which the Secretary mails the discharge application under clause (ii), the Secretary—
“(iv) NOTIFICATION.—
“(I) QUALIFICATIONS MET.—If the Secretary determines that a borrower who requests a discharge described in subparagraph (A) meets the qualifications for such a discharge, the Secretary shall—
“(II) QUALIFICATIONS NOT MET.—If the Secretary determines that a borrower who requests a discharge described in subparagraph (A) does not meet the qualifications for such a discharge, the Secretary or guaranty agency shall resume collection on the loan and notify the borrower in writing of that determination and the reasons for the determination.
“(7) BORROWER QUALIFICATIONS FOR A FALSE CERTIFICATION DISCHARGE.—
“(A) APPLICATION.—
“(i) IN GENERAL.—In order to qualify for false certification discharge under this subsection, the borrower shall submit to the Secretary, on a form approved by the Secretary, an application for discharge that—
“(B) HIGH SCHOOL DIPLOMA OR EQUIVALENT.—In the case of a borrower requesting a false certification discharge based on not having had a high school diploma and not having met the alternative to graduation from high school eligibility requirements under section 484(d) applicable at the time the loan was originated, and the institution or a third party to which the institution referred the borrower falsified the student’s high school diploma, the borrower shall state in the application that the borrower (or the student on whose behalf a parent borrowed)—
“(C) DISQUALIFYING CONDITION.—In the case of a borrower requesting a false certification discharge based on a condition that would disqualify the borrower from employment in the occupation that the program for which the borrower received the loan was intended, the borrower shall state in the application that the borrower (or student on whose behalf the parent borrowed) did not meet State requirements for employment (in the student’s State of residence) in the occupation that the program for which the borrower received the loan was intended because of a physical or mental condition, age, criminal record, or other reason accepted by the Secretary.
“(D) UNAUTHORIZED LOAN.—In the case of a borrower requesting a discharge under this subsection because the institution signed the borrower’s name on the loan application or promissory note without the borrower’s authorization, the borrower shall—
“(E) UNAUTHORIZED PAYMENT.—In the case of a borrower requesting a false certification discharge because the institution, without the borrower’s authorization, endorsed the borrower’s loan check or signed the borrower’s authorization for electronic funds transfer, the borrower shall—
“(i) state that the borrower did not endorse the loan check or sign the authorization for electronic funds transfer or authorize the institution to do so;
“(F) IDENTITY THEFT.—
“(i) IN GENERAL.—In the case of an individual whose eligibility to borrow was falsely certified because the individual was a victim of the crime of identity theft and is requesting a discharge, the individual shall—
“(I) certify that the individual did not sign the promissory note, or that any other means of identification used to obtain the loan was used without the authorization of the individual claiming relief;
“(II) certify that the individual did not receive or benefit from the proceeds of the loan with knowledge that the loan had been made without the authorization of the individual;
“(III) provide a copy of a local, State, or Federal court verdict or judgment that conclusively determines that the individual who is named as the borrower of the loan was the victim of a crime of identity theft; and
“(IV) if the judicial determination of the crime does not expressly state that the loan was obtained as a result of the crime of identity theft, provide—
“(ii) DEFINITIONS.—For purposes of this subparagraph:
“(I) IDENTITY THEFT.—The term ‘identity theft’ means the unauthorized use of the identifying information of another individual that is punishable under section 1028, 1028A, 1029, or 1030 of title 18, United States Code, or substantially comparable State or local law.
“(II) IDENTIFYING INFORMATION.—The term ‘identifying information’ includes—
“(aa) name, Social Security number, date of birth, official State or government issued driver’s license or identification number, alien registration number, government passport number, and employer or taxpayer identification number;
“(bb) unique biometric data, such as fingerprints, voiceprint, retina or iris image, or unique physical representation;
“(dd) telecommunication identifying information or access device (as defined in 18 U.S.C. 1029(e)) borrower qualifications for a false certification discharge
“(G) CLAIM TO THIRD PARTY.—The borrower shall state whether the borrower has made a claim with respect to the institutions’s false certification or unauthorized payment with any third party, such as the holder of a performance bond or a tuition recovery program, and, if so, the amount of any payment received by the borrower or credited to the borrower’s loan obligation.
“(8) BORROWER QUALIFICATIONS FOR AN UNPAID REFUND DISCHARGE.—To receive an unpaid refund discharge of a portion of a loan under this subsection, a borrower shall submit to the holder or guaranty agency a written application—
“(D) under which the borrower states—
“(i) that the borrower—
“(I) received, on or after January 1, 1986, the proceeds of a loan, in whole or in part, made, insured, or guaranteed under this title to attend an institution of higher education;
Section 441 (20 U.S.C. 1087–51) is amended—
(2) in subsection (b), by striking “part, such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.” and inserting “part, $1,722,858,000 for fiscal year 2019 and each of the 5 succeeding fiscal years.”; and
(3) by amending subsection (c) to read as follows:
“(c) Work-Based learning.—For purposes of this part, the term ‘work-based learning’ means paid interactions with industry or community professionals in real workplace settings that foster in-depth, first-hand engagement with the tasks required of a given career field, that are aligned to a student’s field of study.”.
Section 442 (20 U.S.C. 1087–52) is amended to read as follows:
“SEC. 442. Allocation of funds.
“(a) Reservations.—
“(1) RESERVATION FOR IMPROVED INSTITUTIONS.—
“(A) AMOUNT OF RESERVATION FOR IMPROVED INSTITUTIONS.—For a fiscal year in which the amount appropriated under section 441(b) exceeds $700,000,000, the Secretary shall—
“(i) reserve the lesser of—
“(ii) allocate the amount reserved under clause (i) to each improved institution in an amount—
“(I) that bears the same proportion to the amount reserved under clause (i) as the total amount of all Federal Pell Grant funds awarded at the improved institution for the second preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at improved institutions participating under this part for the second preceding fiscal year; and
“(B) IMPROVED INSTITUTION DESCRIBED.—For purposes of this paragraph, an improved institution is an institution that, on the date the Secretary makes an allocation under subparagraph (A)(ii) is, with respect to—
“(i) the completion rate or graduation rate of Federal Pell Grant recipients at the institution, in the top 10 percent of—
“(C) COMPLETION RATE OR GRADUATION RATE.—For purposes of determining the completion rate or graduation rate under this section, a Federal Pell Grant recipient shall be counted as a completor or graduate if, within the normal time for completion of or graduation from the program, the student has completed or graduated from the program, or enrolled in any program of an institution participating in any program under this title for which the prior program provides substantial preparation.
“(b) Allocation formula for fiscal years 2019 through 2023.—
“(1) IN GENERAL.—From the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution—
“(A) for fiscal year 2019, an amount equal to the greater of—
“(2) RATABLE REDUCTION.—
“(A) IN GENERAL.—If the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection (a) is less than the amount required to be allocated to the institutions under this subsection, then the amount of the allocation to each institution shall be ratably reduced.
“(B) ADDITIONAL APPROPRIATIONS.—If the amounts allocated to each institution are ratably reduced under subparagraph (A) for a fiscal year and additional amounts are appropriated for such fiscal year, the amount allocated to each institution from the additional amounts shall be increased on the same basis as the amounts under subparagraph (A) were reduced (until each institution receives the amount required to be allocated under this subsection).
“(c) Allocation formula for fiscal year 2024 and each succeeding fiscal year.—From the amount appropriated under section 441(b) for fiscal year 2024 and each succeeding fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution the fair share amount for the institution determined under subsection (d).
“(d) Determination of fair share amount.—
“(1) IN GENERAL.—The fair share amount for an institution for a fiscal year shall be equal to the sum of the following:
“(A) An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of Federal Pell Grant funds disbursed at the institution for the preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at all institutions participating under this part for the preceding fiscal year.
“(B) An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of the undergraduate student need at the institution for the preceding fiscal year bears to the total amount of undergraduate student need at all institutions participating under this part for the preceding fiscal year.
“(2) DEFINITIONS.—In this subsection:
“(B) AVERAGE COST OF ATTENDANCE.—The term ‘average cost of attendance’ means, with respect to an institution, the average of the attendance costs for a fiscal year for students which shall include—
“(i) tuition and fees, computed on the basis of information reported by the institution to the Secretary, which shall include—
Section 443 (20 U.S.C. 1087–53) is amended—
(1) in subsection (b)—
(B) in paragraph (2), by striking “except that—” and all that follows through “an institution may use a portion” and inserting “except that an institution may use a portion”;
(E) in paragraph (5)—
(i) by striking “shall not exceed 75 percent” and inserting “shall not exceed 75 percent in the first year after the date of the enactment of PROSPER Act, 65 percent in the first succeeding fiscal year, 60 percent in the second succeeding fiscal year, 55 percent in the third succeeding fiscal year, and 50 percent each succeeding fiscal year”;
(I) by adding at the end the following:
“(12) provide assurances that the institution will collect data from students and employers such that the employment made available from funds under this part will, to the maximum extent practicable, complement and reinforce the educational goals or career goals of each student receiving assistance under this part; and
(2) in subsection (c)—
(A) in paragraph (1)—
(iii) by adding at the end the following:
“(B) of full-time employment of its cooperative education students in work for a private for-profit organization under an arrangement between the institution and such organization that complies with the requirements of subparagraphs (A) through (D) of subsection (b)(1) of this section and subsection (b)(4) of this section;”;
Section 445(a) (20 U.S.C. 1087–55(a)) is amended—
(1) in paragraph (2), by striking “in the same State” and inserting “described under section 442(a)(1)(B)”; and
(2) by adding at the end the following new paragraph:
“(3) In addition to the carry-over sums authorized under paragraph (1) of this section, an institution may permit a student who completed the previous award period to continue to earn unearned portions of the student’s work-study award from that previous year if—
Section 446 (20 U.S.C. 1087–56) is amended—
(2) in subsection (b)—
(C) by inserting before paragraph (4), as so redesignated, the following:
Section 447 (20 U.S.C. 1087–57) is repealed.
Section 448 (20 U.S.C. 1087–58) is amended—
(4) by amending subsection (f) to read as follows:
“(f) Allocation of reserved funds.—
“(1) IN GENERAL.—Subject to paragraph (2), from the amount reserved under section 442(a)(2) for a fiscal year to carry out this section, the Secretary shall allocate to each work college that submits an application under subsection (c) an amount equal to the amount that bears the same proportion to the amount appropriated for such fiscal year as the number of students eligible for employment under a work-study program under this part who are enrolled at the work college bears to the total number of students eligible for employment under a work-study program under this part who are enrolled at all work colleges.
“(2) REALLOTMENT OF UNMATCHED FUNDS.—If a work college is unable to match funds received under paragraph (1) in accordance with subsection (d), any unmatched funds shall be returned to the Secretary and the Secretary shall reallot such funds on the same basis as funds are allocated under paragraph (1).”.
(a) Appropriations.—Section 451 (20 U.S.C. 1087a) is amended—
(1) in subsection (a), by adding at the end the following: “No sums may be expended after September 30, 2024, with respect to loans under this part for which the first disbursement is after such date.”; and
(2) by adding at the end, the following:
“(c) Termination of authority to make new loans.—Notwithstanding subsection (a) or any other provision of law—
“(2) no funds are authorized to be appropriated, or may be expended, under this Act, or any other Act to make loans under this part for which the first disbursement is after September 30, 2024,
except as expressly authorized by an Act of Congress enacted after the date of enactment of the PROSPER Act.
“(d) Student eligibility beginning with award year 2019.—
“(1) NEW BORROWERS.—No loan may be made under this part to a new borrower for which the first disbursement is after June 30, 2019.
“(2) BORROWERS WITH OUTSTANDING BALANCES.—Subject to paragraph (3), with respect to a borrower who, as of July 1, 2019, has an outstanding balance of principal or interest owing on a loan made under this part, such borrower may—
“(A) in the case of such a loan made to the borrower for enrollment in a program of undergraduate education, borrow loans made under this part for any program of undergraduate education through the close of September 30, 2024;
(b) Perkins Loan conforming amendment.—Section 453(c)(2)(A) (20 U.S.C. 1087c(c)(2)(A)) is amended by inserting “, as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a),” after “part E”;
(c) Applicable interest rates and other terms and conditions.—Section 455 (20 U.S.C. 1087e) is amended—
(1) in subsection (a)—
(4) in subsection (e)(7), in the matter preceding subparagraph (A), by inserting “, as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a)” after “part E”; and
Section 455(h) (20 U.S.C. 1087e(h)) is amended to read as follows:
“(h) Borrower Defenses.—
“(1) IN GENERAL.—In any proceeding to collect on a loan made under this part on or after July 1, 2018 to a borrower, the Secretary shall abide by the following:
“(A) In no event may the borrower recover any amount previously collected or be freed of amounts owed to the Secretary without submitting an individually-filed application for approval.
“(B) In no event may the borrower recover amounts previously collected by the Secretary, in any action arising from or relating to a loan made under this part, in an amount in excess of the amount that has been paid by the borrower on such loan.
“(C) In no event may the borrower submit an application to recover amounts previously collected by the Secretary later than 3 years after the misconduct or breach of contract on behalf of the institution takes place that gives rise to the borrower to assert a defense to repayment of the loan.
“(D) In no event may anyone other than an administrative law judge or its equivalent preside over hearings of any kind related to applications submitted under this subsection.
“(E) In no event may the Secretary approve or disapprove the borrower’s application under this subsection without allowing for the equal consideration of evidence and arguments presented by a representative on behalf of the student or students and a representative on behalf of the institution, if either such party makes a request.
“(2) BORROWER APPLICATION REQUIREMENTS.—
“(A) IN GENERAL.—An application submitted by a borrower under this subsection to the Secretary shall—
“(i) certify the borrower’s receipt of loan proceeds, in whole or in part, to attend the named institution of higher education;
“(B) EVIDENCE.—The borrower has a borrower defense if—
“(i) the borrower, whether as an individual or as a member of a class, or a governmental agency, has obtained against the institution of higher education a nondefault, favorable contested judgment based on State or Federal law in a court or administrative tribunal of competent jurisdiction;
“(ii) the institution of higher education for which the borrower received the loan made under this part failed to perform its obligations under the terms of a contract with the student; or
“(iii) the institution of higher education described in clause (ii) or any of its representatives engaged directly in marketing, recruitment or admissions activities, or any other institution of higher education, organization, or person with whom such institution has an agreement to provide educational programs, or to provide marketing, advertising, recruiting, or admissions services, made a substantial misrepresentation within the meaning of section 487(c)(3)(B)(i)(II) that the borrower reasonably relied on when the borrower decided to attend, or to continue attending, such institution.
“(3) SECRETARIAL NOTIFICATION REQUIREMENTS.—
“(A) RECEIPT OF APPLICATION.—Upon receipt of a borrower’s application, the Secretary—
“(i) if the borrower is not in default on the loan for which a borrower defense has been asserted, shall grant a forbearance and notify the borrower of the option to decline the forbearance and to continue making payments on the loan;
“(ii) if the borrower is in default on the loan for which a borrower defense has been asserted—
“(I) shall suspend collection activity on the loan until the Secretary issues a decision on the borrower’s claim;
“(B) APPROVED APPLICATION.—If a borrower’s application is approved in full or in part, the Secretary shall—
“(C) APPLICATION NOT APPROVED.—If a borrower’s application is not approved in full or in part, the Secretary—
“(i) shall notify the borrower and the institution of the reasons for the denial, the evidence that was relied upon, any portion of the loan that is due and payable to the Secretary, whether the Secretary will reimburse any amounts previously collected, and inform the borrower that the loan will return to its status prior to the borrower’s submission of the application; and
“(D) CONSOLIDATION.—During a proceeding for an individual borrower, the Secretary may consolidate individually-filed applications that have common facts and claims and resolve the borrowers’ borrower defense claims for faster processing.
“(E) NEW EVIDENCE DEFINED.—For purposes of this paragraph, the term ‘new evidence’ means relevant evidence that the borrower or the institution did not previously provide and that was not identified in the final decision as evidence that was relied upon for the final decision. If accepted for reconsideration by the Secretary, the Secretary shall follow the procedure under this paragraph.
“(F) NOTIFICATION.—After a borrower submits an application, the Secretary shall include in the notification to the borrower—
“(G) TIMELY APPROVAL PROCESS.—During a proceeding for an individual borrower, the Secretary shall process a submitted application and notify the borrower of the final determination in a manner that is timely and efficient.
“(4) CALCULATION OF RELIEF.—The Secretary shall determine the appropriate method for calculating the amount of relief to be awarded to a borrower as a result of a proceeding described in this subsection based on the materials, facts, and evidence presented during the proceeding.
“(5) FURTHER RELIEF.—The Secretary may afford the borrower such further relief as the Secretary determines is appropriate under the circumstances, but which shall not exceed the following:
“(A) Reimbursing the borrower for amounts paid toward the loan voluntarily or through enforced collection.
“(6) RECOVERY.—
“(A) IN GENERAL.—The Secretary may initiate an appropriate proceeding to require the institution of higher education whose act or omission resulted in the borrower’s successful defense against repayment of a loan made under this part to pay to the Secretary the amount of the loan to which the defense applies not later than 3 years from the end of the last award year in which the student attended the institution.
“(B) NOTICE.—The Secretary may initiate a proceeding to collect at any time if the institution received notice of the claim before the end of the later of the periods described in subparagraph (A). For purposes of this subparagraph, notice includes receipt of—
“(i) actual notice from the borrower, from a representative of the borrower, or from the Department;
“(iii) written notice, including a civil investigative demand or other written demand for information, from a Federal or State agency that has power to initiate an investigation into conduct of the institution of higher education relating to specific programs, periods, or practices that may have affected the borrower.”.
(a) Plain language disclosure form.—Section 455(p) (20 U.S.C. 1087e(p)) is amended to read as follows:
“(2) PLAIN LANGUAGE DISCLOSURE FORM.—
“(A) DEVELOPMENT AND ISSUANCE OF FORM.—Not later than 24 months after the date of the enactment of this paragraph, the Secretary shall, based on consumer testing, develop and issue a model form to be known as the ‘Plain Language Disclosure Form’ that shall be used by the Secretary to comply with paragraph (1).
“(B) FORMAT.—The Secretary shall ensure that the Plain Language Disclosure Form—
“(i) enables borrowers to easily identify the information required to be disclosed under section 433(a) with respect to a loan, with emphasis on the loan terms determined by the Secretary, based on consumer testing, to be critical to understanding the total costs of the loan and the estimated monthly repayment;
“(3) ELECTRONIC SYSTEM FOR COMPLIANCE.—In carrying out paragraph (2), Secretary shall develop and implement an electronic system to generate a Plain Language Disclosure Form for each borrower that includes personalized information about the borrower and the borrower’s loans.
“(4) LIMIT ON LIABILITY.—Nothing in this subsection shall be construed to create a private right of action against the Secretary with respect to the form or electronic system developed under this paragraph.
“(5) BORROWER SIGNATURE REQUIRED.—Beginning after the issuance of the Plain Language Disclosure Form by the Secretary under paragraph (2), a loan may not be issued to a borrower under this part unless the borrower acknowledges to the Secretary, in writing (which may include an electronic signature), that the borrower has read the Plain Language Disclosure Form for the loan concerned.
“(6) CONSUMER TESTING DEFINED.—In this subsection, the term ‘consumer testing’ means the solicitation of feedback from individuals, including borrowers and prospective borrowers of loans under this part (as determined by the Secretary), about the usefulness of different methods of disclosing material terms of loans on the Plain Language Disclosure Form to maximize borrowers’ understanding of the terms and conditions of such loans.”.
(b) Report to congress.—Not later than 3 years after the date of the enactment of this Act, the Secretary of Education shall submit to Congress a report that includes a description of the methods and procedures used to develop the Plain Language Disclosure Form required under section 455(p)(2) of the Higher Education Act of 1965 (as added by subsection (a) of this section).
Section 458(a) (20 U.S.C. 1087h)—
Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended by striking “that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools or locations” and inserting “described in section 420N(b)(1)(B)”.
(a) In general.—Except as otherwise provided in this section and notwithstanding section 462, the provisions of part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect on the day before the date of enactment of this Act, are deemed to be incorporated in this subsection as though set forth fully in this subsection, and shall have the same force and effect as on such day.
(b) Close-out audits.—
(1) IN GENERAL.—In the case of an institution of higher education that desires to have a final audit of its participation under the program under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a), at the same time as its annual financial and compliance audit under section 487(c) of such Act (20 U.S.C. 1094(c)), such institution shall submit to the Secretary a request, in writing, for such an arrangement not later than 60 days after the institution terminates its participation under such program.
(2) TERMINATION OF PARTICIPATION.—For purposes of this subsection, an institution shall be considered to have terminated its participation under the program described in paragraph (1), if the institution—
(A) (i) has made a determination not to service and collect student loans made available from funds under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a); or
(B) has completed the asset distribution required under section 466(b) of the Higher Education Act of 1965 (20 U.S.C. 1087ff(b)), as in effect pursuant to subsection (a).
(c) Collection of interest on certain student loans.—In the case of an institution of higher education that, on or after October 1, 2006, loaned an amount to its student loan fund established under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a), for the purpose of making student loans from such fund, and that, before the date of enactment of this Act, has repaid to itself the amount loaned to such student loan fund, the institution shall collect any interest earned on such student loans.
(d) Assignment of loans to Secretary.—Notwithstanding the requirements of section 463(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1087cc(a)(5)), as in effect pursuant to subsection (a), if an institution of higher education determines not to service and collect student loans made available from funds under part E of such Act (20 U.S.C. 1087aa et seq.), as so in effect—
(e) Closed school discharge.—The amendments made by section 428 to section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 1087), relating to closed school discharge, shall apply with respect to any loans discharged on or after the date of enactment of this Act under section 464(g) of such Act (20 U.S.C. 10877dd(g)), as in effect pursuant to subsection (a)).
Part E of title IV (20 U.S.C. 1087aa et seq.) is amended to read as follows:
“(a) In general.—There are hereby made available, in accordance with the provisions of this part, such sums as may be necessary to make loans to all eligible students (and the eligible parents of such students) in attendance at participating institutions of higher education selected by the Secretary to enable such students to pursue their courses of study at such institutions during the period beginning July 1, 2019. Loans made under this part shall be made by participating institutions that have agreements with the Secretary to originate loans.
“SEC. 462. Funds for the origination of ONE loans.
“(a) In general.—The Secretary shall provide, on the basis of eligibility of students at each participating institution, and parents of such students, for such loans, funds for student and Parent Loans under this part directly to an institution of higher education that has an agreement with the Secretary under section 464(a) to participate in the Federal ONE Loan Program under this part and that also has an agreement with the Secretary under section 464(b) to originate loans under this part.
“SEC. 463. Selection of Institutions for Participation and Origination.
“(a) General authority.—The Secretary shall enter into agreements pursuant to section 464(a) with institutions of higher education to participate in the Federal ONE Loan Program under this part, and agreements pursuant to section 464(b) with institutions of higher education, to originate loans in such program, for academic years beginning on or after July 1, 2019. Such agreements for the academic year 2019–2020 shall, to the extent feasible, be entered into not later than January 1, 2019.
“(b) Selection criteria and procedure.—The application and selection procedure for an institution of higher education desiring to participate in the loan program under this part shall be the application and selection procedure described in section 453(b) for an institution of higher education desiring to participate in the loan program under part D.
“SEC. 464. Agreements with Institutions.
“(a) Participation Agreements.—An agreement with any institution of higher education for participation in the Federal ONE Loan Program under this part shall—
“(1) provide for the establishment and maintenance of a direct student loan program at the institution under which the institution will—
“(A) identify eligible students who seek student financial assistance at such institution in accordance with section 484;
“(B) provide a statement that certifies the eligibility of any student to receive a loan under this part that is not in excess of the annual or aggregate limit applicable to such loan, except that the institution may, in exceptional circumstances identified by the Secretary pursuant to section 454(a)(1)(C), refuse to certify a statement that permits a student to receive a loan under this part, if the reason for such action is documented and provided in written form to such student;
“(C) set forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 465(a); and
“(D) provide timely and accurate information, concerning the status of student borrowers (and students on whose behalf parents borrow under this part) while such students are in attendance at the institution and concerning any new information of which the institution becomes aware for such students (or their parents) after such borrowers leave the institution, to the Secretary for the servicing and collecting of loans made under this part;
“(2) provide assurances that the institution will comply with requirements established by the Secretary relating to student loan information with respect to loans made under this part;
“(3) provide that the institution accepts responsibility and financial liability stemming from its failure to perform its functions pursuant to the agreement;
“(b) Origination.—An agreement with any institution of higher education for the origination of loans under this part shall—
“(2) include provisions established by the Secretary that are similar to the participation agreement provisions described in paragraphs (2), (3), (4), and (5) of subsection (a), as modified to relate to the origination of loans by the institution;
“(c) Withdrawal procedures.—
“(1) IN GENERAL.—An institution of higher education participating in the Federal ONE Loan Program under this part may withdraw from the program by providing written notice to the Secretary of the intent to withdraw not less than 60 days before the intended date of withdrawal.
“SEC. 465. Disbursement of student loans, loan limits, interest rates, and loan fees.
“(a) Requirements for disbursement of student loans.—
“(1) MULTIPLE DISBURSEMENT REQUIRED.—
“(A) REQUIRED DISBURSEMENTS.—The proceeds of any loan made under this part that is made for any period of enrollment shall be disbursed as follows:
“(i) The disbursement of the first installment of proceeds shall, with respect to any student other than a student described in subparagraph (B)(i), be made not more than 30 days prior to the beginning of the period of enrollment, and not later than 30 days after the beginning of such period of enrollment.
“(ii) The disbursement of an installment of proceeds shall be made in substantially equal monthly or weekly installments over the period of enrollment for which the loan was made, except that installments may be unequal as necessary to permit the institution to adjust for unequal costs (which may include upfront costs such as tuition and fees) incurred or estimated financial assistance received by the student, or based on the academic progress of the student.
“(B) DISBURSEMENT OF CREDIT BALANCES.—
“(i) TYPE OF DISBURSEMENT.—The credit balances of any loan made under this part that is made for any period of enrollment shall be disbursed by—
“(ii) USAGE OF ACCESS DEVICE.—An institution may enter into an agreement with a third-party servicer for the delivery of funds awarded under this part in which the third-party servicer provides the borrower with an unvalidated access device for accessing credit balances of any loan if—
“(I) the agreement provides that the access device must bear a prominent disclosure informing the borrower that the borrower is not required to use such access device and open such an account in order to access the student’s funds under this part;
“(II) the agreement provides that the consent of the borrower is obtained before the access device is validated to enable the student to access the account;
“(IV) the institution documents that it has conducted a reasonable due diligence review before entering into the agreement, and will conduct such a review at least every two years to ensure that—
“(C) FIRST YEAR STUDENTS.—
“(i) IN GENERAL.—The first installment of the proceeds of any loan made under this part that is made to a student borrower who is entering the first year of a program of undergraduate education, and who has not previously obtained a loan under this part, shall not (regardless of the amount of such loan or the duration of the period of enrollment) be presented by the institution of higher education to the student for endorsement until 30 days after the borrower begins a course of study, but may be delivered to the eligible institution prior to the end of that 30-day period.
“(2) WITHDRAWING OF SUCCEEDING DISBURSEMENTS.—
“(A) WITHDRAWING STUDENTS.—In the case in which the Secretary is informed by the borrower or the institution that the borrower has ceased to be enrolled before the disbursement of the second or any succeeding installment, the Secretary shall withhold such disbursement. Any disbursement which is so withheld shall be credited to the borrower’s loan and treated as a prepayment on the principal of the loan.
“(B) STUDENTS RECEIVING OVER-AWARDS.—If the sum of a disbursement for any borrower and the other financial aid obtained by borrower exceeds the amount of assistance for which the borrower is eligible under this title, the institution the borrower, or dependent student, in the case of a parent borrower, is attending shall withhold and return to the Secretary the portion (or all) of such installment that exceeds such eligible amount, except that overawards permitted pursuant to section 443(b)(4) shall not be construed to be overawards for purposes of this subparagraph. Any portion (or all) of a disbursement installment which is so returned shall be credited to the borrower’s loan and treated as a prepayment on the principal of the loan.
“(3) EXCLUSION OF CONSOLIDATION AND FOREIGN STUDY LOANS.—The provisions of this subsection shall not apply in the case of a Federal ONE Consolidation Loan, or a loan made to a student to cover the cost of attendance in a program of study abroad approved by the home eligible institution if each of the educational programs of such home eligible institution has a loan repayment rate (as calculated under section 481B(c)) for the most recent fiscal year for which data are available of greater than 70 percent.
“(b) Amount of loan.—
“(1) IN GENERAL.—The determination of the amount of a loan disbursed by an eligible institution under this section shall be the lesser of—
“(A) an amount that is equal to the estimated loan amount, as determined by the institution by calculating—
“(ii) (I) any estimated financial assistance reasonably available to such student, including assistance that the student will receive from a Federal grant, including a Federal Pell Grant, a State grant, an institutional grant, or a scholarship or grant from another source, that is known to the institution at the time the student’s determination of need is made; and
“(2) LOAN LIMITS.—
“(A) ANNUAL LIMITS.—Except as provided under subparagraph (B), (C), or (D), the amount of loans made under this part that an eligible student or parent borrower may borrow for an academic year shall be as follows:
“(i) UNDERGRADUATE STUDENTS.—With respect to enrollment in a program of undergraduate education at an eligible institution—
“(I) in the case of a dependent student—
“(aa) who has not successfully completed the first year of a program of undergraduate education, $7,500;
“(II) in the case of an independent student, or a dependent student whose parents are unable to borrow a loan under this part on behalf of such student—
“(aa) who has not successfully completed the first year of a program of undergraduate education, $11,500;
“(III) in the case of a student who is enrolled in a program of undergraduate education that is less than one academic year, the maximum annual loan amount that such student may receive may not exceed the amount that bears the same ratio to the amount specified in subclause (I) or (II), as applicable, as the length of such program measured in semester, trimester, quarter, or clock hours bears to one academic year.
“(ii) GRADUATE OR PROFESSIONAL STUDENTS.—In the case of a graduate or professional student for enrollment in a program of graduate or professional education at an eligible institution, $28,500.
“(iii) PARENT BORROWERS.—In the case of a parent borrowing a loan under this part on behalf of a dependent student for the student’s enrollment in a program of undergraduate education at an eligible institution, $12,500 per each such student.
“(iv) COURSEWORK FOR UNDERGRADUATE ENROLLMENT.—With respect to enrollment in coursework specified in section 484(b)(3)(B) necessary for enrollment in an undergraduate degree or certificate program—
“(v) COURSEWORK FOR GRADUATE OR PROFESSIONAL ENROLLMENT OR TEACHER EMPLOYMENT.—With respect to the enrollment of a student who has obtained a baccalaureate degree in coursework specified in section 484(b)(3)(B) necessary for enrollment in a graduate or professional degree or certificate program, or coursework specified in section 484(b)(4)(B) necessary for a professional credential or certification from a State required for employment as a teacher in an elementary or secondary school, in the case of a student (without regard to whether the student is a dependent student or dependent student), $12,500.
“(B) AGGREGATE LIMITS.—Except as provided under subparagraph (C), (D), or (E), the maximum aggregate amount of loans under this part and parts B and D that an eligible student or parent borrower may borrow shall be—
“(i) for enrollment in a program of undergraduate education at an eligible institution, including for enrollment in coursework described in clause (iv) or (v) of subparagraph (A)—
“(C) APPLICATION OF LIMITS TO BORROWERS WITH PART B OR D LOANS.—
“(i) GRADUATE OR PROFESSIONAL STUDENTS.—In the case of a graduate or professional student who is not described in subparagraph (E) and who has received loans made under part B or D for enrollment in a graduate or professional program at an eligible institution, the total amount of which equal or exceed $28,500 as of the time of disbursement, the student may continue to borrow the amount of loans under this part necessary to complete such program without regard to the aggregate limit under subparagraph (B)(ii), except that the—
“(ii) PARENT BORROWERS.—In the case of a parent borrower who has received loans made under part B or D on behalf of a dependent student for the student’s enrollment in a program of undergraduate education at an eligible institution, the total amount of which equal or exceed $12,500 for such student as of the time of disbursement, the parent borrower may continue to borrow the amount of loans under this part necessary for such student to complete such program without regard to the aggregate limit under subparagraph (B)(i)(III), except that the—
“(D) INSTITUTIONAL DETERMINED LIMITS.—
“(i) IN GENERAL.—Notwithstanding any other provision of this subsection, an eligible institution (at the discretion of a financial aid administrator at the institution) may prorate or limit the amount of a loan any student enrolled in a program of study at that institution may borrow under this part for an academic year—
“(I) if the institution, using the most recently available data from the Bureau of Labor Statistics for the average starting salary in the region in which the institution is located for typical occupations pursued by graduates of such program, can reasonably demonstrate that student debt levels are or would be excessive for such program;
“(II) in a case in which the student is enrolled on a less than full-time basis or the student is enrolled for less than the period of enrollment to which the annual loan limit applies under this subsection, based on the student’s enrollment status;
“(ii) APPLICATION TO ALL STUDENTS.—Any proration or limiting of loan amounts under clause (i) shall be applied in the same manner to all students enrolled in the institution or program of study.
“(iii) INCREASES FOR INDIVIDUAL STUDENTS.—Upon the request of a student whose loan amount for an academic year has been prorated or limited under clause (i), an eligible institution (at the discretion of the financial aid administrator at the institution) may increase such loan amount to an amount not exceeding the annual loan amount applicable to such student under this subparagraph for such academic year if such student demonstrates special circumstances or exceptional need.
“(E) INCREASES FOR CERTAIN GRADUATE OR PROFESSIONAL STUDENTS.—
“(i) ADDITIONAL ANNUAL AMOUNTS.—Subject to clause (iii) of this subparagraph, in addition to the loan amount for an academic year described in subparagraph (A)(ii)—
“(I) a graduate or professional student who is enrolled in a program of study to become a doctor of allopathic medicine, doctor of osteopathic medicine, doctor of dentistry, doctor of veterinary medicine, doctor of optometry, doctor of podiatric medicine, doctor of naturopathic medicine, or doctor of naturopathy may borrow an additional—
“(II) a graduate or professional student who is enrolled in a program of study to become a doctor of pharmacy, doctor of chiropractic medicine, or a physician’s assistant, or receive a graduate degree in public health, doctoral degree in clinical psychology, or a masters or doctoral degree in health administration may borrow an additional—
“(ii) AGGREGATE LIMIT.—Subject to clause (iii) of this subparagraph, the maximum aggregate amount of loans under this part and parts B and D that a student described in clause (i) may borrow shall be $235,500.
“(iii) LIMITATION.—In the case of a graduate or professional student described in clause (i) of this subparagraph who has received loans made under part B or D for enrollment in a graduate or professional program at an eligible institution, the total amount of which equal or exceed $28,500 as of the time of disbursement, the student may continue to borrow the amount of loans under this part necessary to complete such program without regard to the aggregate limit under clause (ii) of this subparagraph, except that the—
“(c) Interest rate provisions for Federal ONE Loans.—
“(1) UNDERGRADUATE ONE LOANS.—For Federal ONE Loans issued to undergraduate students, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—
“(2) GRADUATE AND PROFESSIONAL ONE LOANS.—For Federal ONE Loans issued to graduate or professional students, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—
“(3) PARENT ONE LOANS.—For Federal ONE Parent Loans, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—
“(4) CONSOLIDATION LOANS.—Any Federal ONE Consolidation Loan for which the application is received on or after July 1, 2019, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent.
“(d) Prohibition on certain repayment incentives.—Notwithstanding any other provision of this part, the Secretary is prohibited from authorizing or providing any repayment incentive or subsidy not otherwise authorized under this part to encourage on-time repayment of a loan under this part, including any reduction in the interest paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction of not more than 0.25 percentage points for a borrower who agrees to have payments on such a loan automatically debited from a bank account.
“(e) Loan fee.—The Secretary shall not charge the borrower of a loan made under this part an origination fee.
“(f) Armed forces student loan interest payment program.—
“(1) AUTHORITY.—Using funds received by transfer to the Secretary under section 2174 of title 10, United States Code, for the payment of interest on a loan made under this part to a member of the Armed Forces, the Secretary shall pay the interest on the loan as due for a period not in excess of 36 consecutive months. The Secretary may not pay interest on such a loan out of any funds other than funds that have been so transferred.
“(2) DEFERMENT.—During the period in which the Secretary is making payments on a loan under paragraph (1), the Secretary shall grant the borrower administrative deferment, in the form of a temporary cessation of all payments on the loan other than the payments of interest on the loan that are made under that paragraph.
“(g) No accrual of interest for active duty service members.—
“(1) IN GENERAL .—Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), interest shall not accrue for an eligible military borrower on a loan made under this part.
“(2) CONSOLIDATION LOANS.—In the case of any consolidation loan made under this part, interest shall not accrue pursuant to this subsection only on such portion of such loan as was used to repay a loan made under this part or a loan made under part D for which the first disbursement was made on or after October 1, 2008, and before July 1, 2019.
“(a) Repayment period; commencement of repayment.—
“(1) REPAYMENT PERIOD.—
“(A) IN GENERAL.—In the case of a Federal ONE Loan (other than a Federal ONE Consolidation Loan or a Federal ONE Parent Loan)—
“(B) CONSOLIDATION AND PARENT LOANS.—In the case of a Federal ONE Consolidation Loan or a Federal ONE Parent Loan, the repayment period shall—
“(C) ACTIVE DUTY EXCLUSION.—There shall be excluded from the 6-month period that begins on the date on which a student ceases to carry at least one-half the normal full-time academic workload as described in subparagraph (A) any period not to exceed 3 years during which a borrower who is a member of a reserve component of the Armed Forces named in section 10101 of title 10, United States Code, is called or ordered to active duty for a period of more than 30 days (as defined in section 101(d)(2) of such title). Such period of exclusion shall include the period necessary to resume enrollment at the borrower’s next available regular enrollment period.
“(2) PAYMENT OF PRINCIPAL AND INTEREST.—
“(A) COMMENCEMENT OF REPAYMENT.—Repayment of principal on loans made under this part shall begin at the beginning of the repayment period described in paragraph (1).
“(B) CAPITALIZATION OF INTEREST.—
“(C) NOTICE.—Not less than 60 days, and again not less than 30 days, prior to the anticipated commencement of the repayment period for a Federal ONE Loan, the Secretary shall provide notice to the borrower—
“(b) Repayment amount.—
“(1) IN GENERAL.—The total of the payments by a borrower, except as otherwise provided by an income-based repayment plan under subsection (d), during any year of any repayment period with respect to the aggregate amount of all loans made under this part to the borrower shall not (unless the borrower and the Secretary otherwise agree), be less than $600 or the balance of all such loans (together with interest thereon), whichever amount is less (but in no instance less than the amount of interest due and payable, notwithstanding any repayment plan described in subsection (c)).
“(2) AMORTIZATION.—
“(A) INTEREST RATE.—The amount of the periodic payment and the repayment schedule for a loan made under this part shall be established by assuming an interest rate equal to the applicable rate of interest at the time of the first disbursement of the loan.
“(B) ADJUSTMENT TO REPAYMENT AMOUNT.—The note or other written evidence of a loan under this part shall require that the amount of the periodic payment will be adjusted annually in order to reflect adjustments in—
“(c) Repayment plans.—
“(1) DESIGN AND SELECTION.—Not more than 6 months prior to the date on which a borrower’s first payment on a loan made under this part is due, the Secretary shall offer the borrower two plans for repayment of such loan, including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on the borrower’s loans under this part. The borrower may choose—
“(2) SELECTION BY SECRETARY.—If a borrower of a loan made under this part does not select a repayment plan described in paragraph (1), the Secretary shall provide the borrower with the repayment plan described in paragraph (1)(A).
“(3) CHANGES IN SELECTIONS.—
“(A) IN GENERAL.—Subject to subparagraph (B), the borrower of a loan made under this part may change the borrower’s selection of a repayment plan under paragraph (1), or the Secretary’s selection of a plan for the borrower under paragraph (2), as the case may be, under such terms and conditions as may be established by the Secretary, except that the Secretary may not establish any terms or conditions with respect to whether a borrower may change the borrower’s repayment plan. Nothing in this subsection shall prohibit the Secretary from encouraging struggling borrowers from enrolling in the income-driven repayment plan described in section 466(d).
“(B) SAME REPAYMENT PLAN REQUIRED.—All loans made under this part to a borrower shall be repaid under the same repayment plan under paragraph (1), except that the borrower may repay a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan (as defined in subsection (d)(5)) separately from other loans made under this part to the borrower.
“(4) REPAYMENT AFTER DEFAULT.—The Secretary may require any borrower who has defaulted on a loan made under this part to—
“(d) Income-based repayment program.—
“(1) IN GENERAL.—Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which—
“(A) a borrower of any loan made under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan) may elect to have the borrower’s aggregate monthly payment for all such loans—
“(i) not to exceed the result obtained by dividing by 12, 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—
“(I) the adjusted gross income of the borrower or, if the borrower is married and files a Federal income tax return jointly with or separately from the borrower’s spouse, the adjusted gross income of the borrower and the borrower's spouse; exceeds
“(II) 150 percent of the poverty line applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)); and
“(B) the Secretary adjusts the calculated monthly payment under subparagraph (A), if—
“(i) in addition to the loans described in subparagraph (A), the borrower has an outstanding loan made under part B or D (other than an excepted parent loan or an excepted consolidation loan, as such terms are defined in section 493C(a)), by determining the borrower’s adjusted monthly payment by multiplying—
“(ii) the borrower and borrower’s spouse have loans described in subparagraph (A) and outstanding loans under part B or D (other than an excepted parent loan or an excepted consolidation loan, as such terms are defined in section 493C(a)) and have filed a joint or separate Federal income tax return, in which case the Secretary determines—
“(I) each borrower’s percentage of the couple’s total outstanding amount of principal on such loans;
“(II) the adjusted monthly payment for each borrower by multiplying the borrower’s calculated monthly payment by the percentage determined under subclause (I) applicable to the borrower; and
“(III) if the borrower’s loans are held by multiple holders, the borrower’s adjusted monthly payment for loans described in subparagraph (A) by multiplying the adjusted monthly payment determined under subclause (II) by the percentage of the total outstanding principal amount of the borrower’s loans described in the matter preceding subclause (I), which are described in subparagraph (A);
“(C) the holder of such a loan shall apply the borrower’s monthly payment under this subsection first toward interest due on the loan, next toward any fees due on the loan, and then toward the principal of the loan;
“(E) any interest due and not paid under subparagraph (C) shall be capitalized, at the time the borrower—
“(F) the amount of time the borrower makes monthly payments under subparagraph (A) may exceed 10 years;
“(G) if the borrower no longer wishes to continue the election under this subsection, then—
“(i) the maximum monthly payment required to be paid for all loans made to the borrower under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan) shall not exceed the monthly amount calculated under subsection (c)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection; and
“(H) the Secretary shall cancel any outstanding balance (other than an amount equal to the interest accrued during any period of in-school deferment under subparagraph (A), (B), or (F) of section 469A(b)(1)) due on all loans made under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan) to a borrower—
“(ii) whose final monthly payment for such loans prior to the loan cancellation under this subparagraph was made under such income-based repayment; and
“(iii) who has repaid, pursuant to income-based repayment under subparagraph (A), a standard repayment plan under subsection (c)(1)(A), or a combination—
“(I) a borrower who is repaying a loan made under this part pursuant to income-based repayment under subparagraph (A) may elect, at any time during the 10-year period beginning on the date the borrower entered repayment on the loan, to terminate repayment pursuant to such income-based repayment and repay such loan under the standard repayment plan.
“(2) ELIGIBILITY DETERMINATIONS.—
“(A) IN GENERAL.—The Secretary shall establish procedures for annual verification of a borrower’s annual income and the annual amount due on the total amount of loans made under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan), and such other procedures as are necessary to implement effectively income-based repayment under this subsection, including the procedures established with respect to section 493C.
“(B) INCOME INFORMATION.—The Secretary may obtain such information as is reasonably necessary regarding the income of a borrower (and the borrower's spouse, if applicable) of a loan made under this part that is, or may be, repaid pursuant to income-based repayment under this subsection, for the purpose of determining the annual repayment obligation of the borrower. The Secretary shall establish procedures for determining the borrower’s repayment obligation on that loan for such year, and such other procedures as are necessary to implement effectively the income-based repayment under this subsection.
“(C) BORROWER REQUIREMENTS.—A borrower who chooses to repay a loan made under this part pursuant to income-based repayment under this subsection, and—
“(3) NOTIFICATION TO BORROWERS.—The Secretary shall establish procedures under which a borrower of a loan made under this part who chooses to repay such loan pursuant to income-based repayment under this subsection is notified of the terms and conditions of such plan, including notification that if a borrower considers that special circumstances, such as a loss of employment by the borrower or the borrower's spouse, warrant an adjustment in the borrower's loan repayment as determined using the borrower’s Federal tax return information, or the alternative documentation described in paragraph (2)(C), the borrower may contact the Secretary, who shall determine whether such adjustment is appropriate, in accordance with criteria established by the Secretary.
“(4) REDUCED PAYMENT PERIODS.—
“(A) IN GENERAL.—The Secretary shall authorize borrowers meeting the criteria under subparagraph (B) to make monthly payments of $5 for a period not in excess of 3 years, except that—
“(B) ELIGIBILITY DETERMINATIONS.—The Secretary shall authorize borrowers to make reduced payments under this paragraph in the following circumstances:
“(i) In a case of borrower who is seeking and unable to find full-time employment, as demonstrated by providing to the Secretary—
“(5) DEFINITIONS.—In this subsection:
“(A) ADJUSTED GROSS INCOME.—The term ‘adjusted gross income’ has the meaning given the term in section 62 of the Internal Revenue Code of 1986.
“(B) EXCEPTED FEDERAL ONE CONSOLIDATION LOAN.—The term ‘Excepted Federal ONE Consolidation Loan’ means a Federal ONE Consolidation Loan if the proceeds of such loan were used to discharge the liability on—
“SEC. 467. Federal ONE Parent Loans.
“(a) Authority To Borrow.—
“(1) AUTHORITY AND ELIGIBILITY.—The parent of a dependent student shall be eligible to borrow funds under this section in amounts specified in subsection (b), if—
“(A) the parent is borrowing to pay for the educational costs of a dependent student who meets the requirements for an eligible student under section 484(a);
“(B) the parent meets the applicable requirements concerning defaults and overpayments that apply to a student borrower;
“(C) the parent complies with the requirements for submission of a statement of educational purpose that apply to a student borrower under section 484(a)(4)(A) (other than the completion of a statement of selective service registration status);
“(E) the parent—
“(F) in the case of a parent who has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, such parent has completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this title obtained by fraud.
“(2) TERMS, CONDITIONS, AND BENEFITS.—Except as provided in subsections (c), (d), and (e), loans made under this section shall have the same terms, conditions, and benefits as all other loans made under this part.
“(3) PARENT BORROWERS.—
“(A) DEFINITION.—For purposes of this section, the term ‘parent’ includes a student’s biological or adoptive mother or father or the student’s stepparent, if the biological parent or adoptive mother or father has remarried at the time of filing the common financial reporting form under section 483(a), and that spouse’s income and assets would have been taken into account when calculating the student's expected family contribution.
“(4) ADVERSE CREDIT HISTORY DEFINITIONS AND ADJUSTMENTS.—
“(A) DEFINITIONS.—For purposes of this section:
“(i) IN GENERAL.—The term ‘adverse credit history’, when used with respect to a borrower, means that the borrower—
“(ii) CHARGED OFF.—The term ‘charged off’ means a debt that a creditor has written off as a loss, but that is still subject to collection action.
“(iii) IN COLLECTION.— The term ‘in collection’ means a debt that has been placed with a collection agency by a creditor or that is subject to more intensive efforts by a creditor to recover amounts owed from a borrower who has not responded satisfactorily to the demands routinely made as part of the creditor’s billing procedures.
“(B) ADJUSTMENTS.—
“(i) IN GENERAL.—In a case of a borrower with a debt amount described in subparagraph (A)(i), the Secretary shall increase such debt amount, or its inflation-adjusted equivalent, if the Secretary determines that an inflation adjustment to such debt amount would result in an increase of $100 or more to such debt amount.
“(C) TREATMENT OF ABSENCE OF CREDIT HISTORY.—For purposes of this section, the Secretary shall not consider the absence of a credit history as an adverse credit history and shall not deny a Federal ONE Parent loan on that basis.
“(b) Limitation based on need.—Any loan under this section may be counted as part of the expected family contribution in the determination of need under this title, but no loan may be made to any parent under this section for any academic year in excess of the lesser of—
“(c) Parent Loan Disbursement.—All loans made under this section shall be disbursed in accordance with the requirements of section 465(a) and shall be disbursed by—
“(d) Payment of Principal and Interest.—
“(1) COMMENCEMENT OF REPAYMENT.—Repayment of principal on loans made under this section shall commence not later than 60 days after the date such loan is disbursed by the Secretary, subject to deferral—
“(2) MAXIMUM REPAYMENT PERIOD.—The maximum repayment period for a loan made under this section shall be a 10-year period beginning on the commencement of such period described in paragraph (1).
“(3) CAPITALIZATION OF INTEREST.—Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall, if agreed upon by the borrower and the Secretary—
“SEC. 468. Federal ONE Consolidation Loans.
“(a) Terms and conditions.—In making consolidation loans under this section, the Secretary shall—
“(1) not make such a loan to an eligible borrower, unless the Secretary has determined, in accordance with reasonable and prudent business practices, for each loan being consolidated, that the loan—
“(2) ensure that each consolidation loan made under this section will bear interest, and be subject to repayment, in accordance with subsection (c), except as otherwise provided under subsections (f) and (g) of section 465;
“(3) ensure that each consolidation loan will be made, notwithstanding any other provision of this part limiting the annual or aggregate principal amount for all loans made to a borrower, in an amount which is equal to the sum of the unpaid principal and accrued unpaid interest and late charges of all eligible student loans received by the eligible borrower which are selected by the borrower for consolidation;
“(4) ensure that the proceeds of each consolidation loan will be paid by the Secretary to the holder or holders of the loans so selected to discharge the liability on such loans;
“(5) disclose to a prospective borrower, in simple and understandable terms, at the time the Secretary provides an application for a consolidation loan—
“(A) with respect to a loan made, insured, or guaranteed under this part, part B, or part D, that if a borrower includes such a loan in the consolidation loan—
“(ii) which specific loan benefits the borrower would lose, including the loss of eligibility for loan forgiveness (including loss of eligibility for interest rate forgiveness), cancellation, deferment, forbearance, interest-free periods, or loan repayment programs that would have been available for such a loan; and
“(B) with respect to Federal Perkins Loans under this part (as this part was in effect on the day before the date of enactment of the PROSPER Act)—
“(i) that if a borrower includes such a Federal Perkins Loan in the consolidation loan, the borrower will lose all interest-free periods that would have been available for the Federal Perkins Loan, such as—
“(I) the periods during which no interest accrues on such loan while the borrower is enrolled in an institution of higher education at least half-time;
“(ii) that if a borrower includes such a Federal Perkins Loan in the consolidation loan, the borrower will no longer be eligible for cancellation of part or all of the Federal Perkins Loan under section 465(a) (as such section was in effect on the day before the date of enactment of the PROSPER Act); and
“(6) not make such a loan to an eligible borrower, unless—
“(B) the loan is evidenced by a note or other written agreement which—
“(i) is made without security and without endorsement, except that if—
“(ii) provides for the payment of interest and the repayment of principal as described in paragraph (2);
“(iii) provides that during any period for which the borrower would be eligible for a deferral under section 469A, which period shall not be included in determining the repayment schedule pursuant to subsection (c)—
“(I) periodic installments of principal need not be paid, but interest shall accrue and be paid by the borrower or be capitalized; and
“(II) except as otherwise provided under subsections (f) and (g) of section 465, the Secretary shall not pay interest on any portion of the consolidation loan, without regard to whether the portion repays Federal Stafford Loans for which the student borrower received an interest subsidy under section 428 or Federal Direct Stafford Loans for which the borrower received an interest subsidy under section 455;
“(b) Nondiscrimination in Loan Consolidation.—The Secretary shall not discriminate against any borrower seeking a loan under this section—
“(c) Payment of Principal and Interest.—
“(1) REPAYMENT SCHEDULES.—
“(A) ESTABLISHMENT.—
“(ii) SCHEDULE TERMS.—The repayment terms established under clause (i)(I) shall require that if the sum of the consolidation loan and the amount outstanding on other eligible student loans to the individual—
“(II) is equal to or greater than $7,500 but less than $10,000, then such consolidation loan shall be repaid in not more than 12 years;
“(III) is equal to or greater than $10,000 but less than $20,000, then such consolidation loan shall be repaid in not more than 15 years;
“(IV) is equal to or greater than $20,000 but less than $40,000, then such consolidation loan shall be repaid in not more than 20 years;
“(2) ADDITIONAL REPAYMENT REQUIREMENTS.—Notwithstanding paragraph (1)—
“(A) except in the case of an income-based repayment schedule under section 466(d), a repayment schedule established with respect to a consolidation loan shall require that the minimum installment payment be an amount equal to not less than the accrued unpaid interest; and
“(d) Insurance rule.—Any insurance premium paid by the borrower under subpart I of part A of title VII of the Public Health Service Act with respect to a loan made under that subpart and consolidated under this section shall be retained by the student loan insurance account established under section 710 of the Public Health Service Act.
“(e) Definitions.—For the purpose of this section:
“(1) ELIGIBLE BORROWER.—
“(A) IN GENERAL.—The term ‘eligible borrower’ means a borrower who—
“(i) is not subject to a judgment secured through litigation with respect to a loan under this title or to an order for wage garnishment under section 488A; and
“(B) TERMINATION OF STATUS AS AN ELIGIBLE BORROWER.—An individual's status as an eligible borrower under this section terminates upon receipt of a consolidation loan under this section, except that—
“(i) an individual who receives eligible student loans after the date of receipt of the consolidation loan may receive a subsequent consolidation loan;
“(ii) loans received prior to the date of the consolidation loan may be added during the 180-day period following the making of the consolidation loan;
“(iii) loans received following the making of the consolidation loan may be added during the 180-day period following the making of the consolidation loan;
“(iv) loans received prior to the date of the first consolidation loan may be added to a subsequent consolidation loan; and
“(v) an individual may obtain a subsequent consolidation loan for the purpose—
“(I) of income-based repayment under section 466(d) only if the loan has been submitted for default aversion or if the loan is already in default;
“(2) ELIGIBLE STUDENT LOANS.—For the purpose of paragraph (1), the term ‘eligible student loans’ means loans—
“SEC. 469. Temporary Loan Consolidation Authority.
“(a) In general.—A borrower who has 1 or more loans in 2 or more of the categories described in subsection (b), and who has not yet entered repayment on 1 or more of those loans in any of the categories, may consolidate all of the loans of the borrower that are described in subsection (b) into a Federal ONE Consolidation Loan during the period described in subsection (c).
“(b) Categories of loans that may be consolidated.—The categories of loans that may be consolidated under this section are—
“(c) Time period in which loans may be consolidated.—The Secretary may make a Federal ONE Consolidation Loan under this section to a borrower whose application for such Federal ONE Consolidation Loan is received on or after July 1, 2019, and before July 1, 2024.
“(d) Terms of Loans.—A Federal ONE Consolidation Loan made under this subsection shall have the same terms and conditions as a Federal ONE Consolidation Loan made under section 468, except that in determining the applicable rate of interest on the Federal ONE Consolidation Loan made under this section, section 465(c)(4) shall be applied without rounding the weighted average of the interest rate on the loans consolidated to the nearest higher one-eighth of one percent as in such section.
“(a) Effect on principal and interest.—A borrower of a loan made under this part who meets the requirements described in subsection (b) shall be eligible for a deferment during which installments of principal need not be paid and, unless otherwise provided in this subsection, interest shall accrue and be capitalized or paid by the borrower.
“(b) Eligibility.—A borrower of a loan made under this part shall be eligible for a deferment—
“(1) during any period during which the borrower—
“(A) is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing, as determined by the eligible institution the borrower is attending;
“(C) is serving on active duty during a war or other military operation or national emergency, and for the 180-day period following the demobilization date for such service;
“(D) is performing qualifying National Guard duty during a war or other military operation or national emergency, and for the 180-day period following the demobilization date for such service;
“(E) is a member of the National Guard who is not eligible for a post-active duty deferment under section 493D and is engaged in active State duty for a period of more than 30 consecutive days beginning—
“(F) is serving in a medical or dental internship or residency program, the successful completion of which is required to begin professional practice or service, or is serving in a medical or dental internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training; or
“(c) Length of deferment.—A deferment granted by the Secretary—
“(d) Request and documentation.—The Secretary shall determine the eligibility of a borrower for a deferment under paragraphs (1), (2), or (4) of subsection (b), or in the case of a loan for which an endorser is required, an endorser’s eligibility for a deferment under paragraph (2) or (4) or eligibility to request a deferment under paragraph (1), based on—
“(1) the receipt of a request for a deferment from the borrower or the endorser, and documentation of the borrower’s or endorser’s eligibility for the deferment or eligibility to request the deferment;
“(2) receipt of a completed loan application that documents the borrower’s eligibility for a deferment;
“(e) Notification.—The Secretary shall—
“(2) at the time the Secretary grants a deferment to a borrower of a loan made under this part, and not less frequently than once every 180 days during the period of such deferment, provide information to the borrower to assist the borrower in understanding—
“(A) the effect of granting a deferment on the total amount to be paid under the income-based repayment plan under 466(d);
“(B) the fact that interest will accrue on the loan for the period of deferment, other than for a deferment granted under subsection (b)(1)(G);
“(C) the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower;
“(D) the amount of interest that will be capitalized, and the date on which capitalization will occur;
“(E) the effect of the capitalization of interest on the borrower’s loan principal and on the total amount of interest to be paid on the loan;
“(f) Form of deferment.—The form of a deferment granted under this subsection on a loan made under this part shall be temporary cessation of all payments on such loan, except that—
“(g) Graduate fellowship deferment.—
“(1) IN GENERAL.—A borrower of a loan under this part is eligible for a deferment under subsection (b)(1)(B)(i) during any period for which an authorized official of the borrower’s graduate fellowship program certifies that the borrower meets the requirements of paragraph (2) and is pursuing a course of study pursuant to an eligible graduate fellowship program.
“(h) Treatment of study outside the United States.—
“(1) IN GENERAL.—The Secretary shall treat, in the same manner as required under section 428(b)(4), any course of study at a foreign university that is accepted for the completion of a recognized international fellowship program by the administrator of such a program as an eligible graduate fellowship program.
“(2) REQUESTS FOR DEFERMENT.—Requests for deferment of repayment of loans under this subsection by students engaged in graduate or postgraduate fellowship-supported study (such as pursuant to a Fulbright grant) outside the United States shall be approved until completion of the period of the fellowship, in the same manner as required under section 428(b)(4).
“(i) Rehabilitation training program deferment.—A borrower of a loan under this part is eligible for a deferment under subsection (b)(1)(B)(ii) during any period for which an authorized official of the borrower’s rehabilitation training program certifies that the borrower is pursuing an eligible rehabilitation training program for individuals with disabilities.
“(j) Administrative deferments.—The Secretary may grant a deferment to a borrower or, in the case of a loan for which an endorser is required, an endorser, without requiring a request and documentation from the borrower or the endorser under subsection (d) for—
“(1) a period during which the borrower was delinquent at the time a deferment is granted, including a period for which scheduled payments of principal and interest were overdue at the time such deferment is granted;
“(2) a period during which the borrower or the endorser was granted a deferment under this subsection but for which the Secretary determines the borrower or the endorser should not have qualified;
“(3) a period necessary for the Secretary to determine the borrower’s eligibility for the cancellation of the obligation of the borrower to repay the loan under section 437;
“(4) a period during which the Secretary has authorized deferment due to a national military mobilization or other local or national emergency; or
“(k) Deferments for parent or excepted consolidation loans.—
“(1) IN GENERAL.—A qualified borrower shall be eligible for deferments under paragraphs (3) through (5).
“(3) ECONOMIC HARDSHIP DEFERMENT.—
“(A) IN GENERAL.—A qualified borrower shall be eligible for a deferment during periods, not to exceed 3 years in total, during which the qualified borrower experiences an economic hardship described in subparagraph (B).
“(B) ECONOMIC HARDSHIP.—An economic hardship described in this clause is a period during which the qualified borrower—
“(ii) is employed full-time and the monthly gross income of the qualified borrower does not exceed the greater of—
“(I) the minimum wage rate described in section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206); or
“(C) ELIGIBILITY.—To be eligible to receive a deferment under this subparagraph, a qualified borrower shall submit to the Secretary—
“(i) for the first period of deferment under this subparagraph, evidence showing the monthly gross income of the qualified borrower; and
“(4) UNEMPLOYMENT DEFERMENT.—
“(A) IN GENERAL.—A qualified borrower shall be eligible for a deferment for periods during which the qualified borrower is seeking, and is unable to find, full-time employment.
“(B) ELIGIBILITY.—
“(i) IN GENERAL.—To be eligible to receive an deferment under this subparagraph, a qualified borrower shall submit to the Secretary—
“(ii) ACCEPTANCE OF EMPLOYMENT.—A qualified borrower shall not be eligible for a deferment under this subparagraph if the qualified borrower refuses to seek or accept employment in types of positions or at salary levels or responsibility levels for which the qualified borrower feels overqualified based on the qualified borrower’s education or previous experience.
“(C) TERMS OF DEFERMENT.—The following terms shall apply to a deferment under this subparagraph:
“(i) INITIAL PERIOD.—The first deferment granted to a qualified borrower under this subparagraph may be for a period of unemployment beginning not more than 6 months before the date on which the Secretary receives the qualified borrower’s request for deferment and may be granted for a period of up to 6 months after that date.
“(ii) RENEWALS.—Deferments under this subparagraph shall be renewable at 6-month intervals beginning after the expiration of the first period of deferment under clause (i). To be eligible to renew a deferment under this subparagraph, a qualified borrower shall submit to the Secretary the information described in subparagraph (B)(i).
“(5) HEALTH DEFERMENT.—
“(A) IN GENERAL.—A qualified borrower shall be eligible for a deferment during periods in which the qualified borrower is unable to make scheduled loan payments due to high medical expenses, as determined by the Secretary.
“(B) ELIGIBILITY.—To be eligible to receive a deferment under this subparagraph, a qualified borrower shall—
“(l) Prohibitions.—
“(1) PROHIBITION ON FEES.—No administrative fee or other fee may be charged to the borrower in connection with the granting of a deferment under this subsection.
“(m) Treatment of endorsers.—With respect to any Federal ONE Parent Loan or Federal ONE Consolidation Loan for which an endorser is required—
“(n) Definitions.—In this section:
“(1) ELIGIBLE GRADUATE FELLOWSHIP PROGRAM.—The term ‘eligible graduate fellowship program’, when used with respect to a course of study pursued by the borrower of a loan under this part, means a fellowship program that—
“(A) provides sufficient financial support to graduate fellows to allow for full-time study for at least six months;
“(B) requires a written statement from each applicant explaining the applicant’s objectives before the award of that financial support;
“(2) ELIGIBLE REHABILITATION TRAINING PROGRAM FOR INDIVIDUALS WITH DISABILITIES.—The term ‘eligible rehabilitation training program for individuals with disabilities’, when used with respect a course of study pursued by the borrower of a loan under this part, means a program that—
“(A) is necessary to assist an individual with a disability in preparing for, securing, retaining, or regaining employment;
“(B) is licensed, approved, certified, or otherwise recognized as providing rehabilitation training to disabled individuals by—
“(3) EXCEPTED FEDERAL ONE CONSOLIDATION LOAN.—The ‘Excepted Federal ONE Consolidation Loan’ have the meaning given the term in section 466(d)(5).
“(4) FAMILY SIZE.—The term ‘family size’ means the number that is determined by counting—
“(C) the borrower’s children, including unborn children who are expected to be born during the period covered by the deferment, if the children receive more than half their support from the borrower; and
“(D) another individual if, at the time the borrower requests a deferment under this section, the individual—
“(5) FULL-TIME.—The term ‘full-time’, when used with respect to employment, means employment for not less than 30 hours per week that is expected to continue for not less than three months.
“(6) MEANS-TESTED BENEFIT PROGRAM.—The term ‘means-tested benefit program’ means—
“(A) a State public assistance program under which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit; or
“(B) a mandatory spending program of the Federal Government, other than a program under this title, under which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit, and may include such programs as
“(i) the supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
“(ii) the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
“(iii) the free and reduced price school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
“(iv) the program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.);
“(v) the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786); and
“(a) Applicable part B provisions.—
“(1) DISCLOSURES.—Except as otherwise provided in this part, section 455(p) shall apply with respect to loans under this part in the same manner that such section applies with respect to loans under part D.
“(2) OTHER PROVISIONS.—Except as otherwise provided in this part, the following provisions shall apply with respect to loans made under this part in the same manner that such provisions apply with respect to loans made under part D:
“(3) APPLICATION OF PROVISIONS.—Any provision listed under paragraph (1) or (2) that applies to—
“(A) Federal Direct PLUS Loans made on behalf of dependent students shall apply to Federal ONE Parent Loans;
“(B) Federal Direct PLUS Loans made to students shall apply to Federal ONE Loans for graduate or professional students;
“(b) Eligible student.—A loan under this part may only be made to a student who—
“(c) Loan Application and Promissory Note.—The common financial reporting form required in section 483(a)(1) shall constitute the application for loans made under this part. The Secretary shall develop, print, and distribute to participating institutions a standard promissory note and loan disclosure form.
“(d) Borrower defenses.—A borrower of a loan under this part may assert a defense to repayment to such loan under the provisions of section 455(h) that apply to a borrower of a loan made under part D asserting, on or after the date of enactment of the PROSPER Act, a defense to repayment to such loan made under part D.
“(e) Identity fraud protection.—The Secretary shall ensure that monthly Federal ONE Loan statements and other publications of the Department do not contain more than four digits of the Social Security number of any individual.
“(f) Authority to sell loans.—The Secretary, in consultation with the Secretary of the Treasury, is authorized to sell loans made under this part on such terms determined to be in the best interest of the United States, except that any such sale shall not result in any cost to the Federal Government.”.
Section 472 (20 U.S.C. 1087ll) is amended—
Section 479(b)(1) (20 U.S.C. 1087ss) is amended by striking “$50,000” both places it appears and inserting “$100,000”.
Section 479A (20 U.S.C. 1087tt) is amended—
(1) in subsection (a), by striking “financial assistance under section 428H or a Federal Direct Unsubsidized Stafford Loan” and inserting “a Federal Direct Unsubsidized Stafford Loan or a Federal ONE Loan”;
(3) by adding at the end the following:
“(d) Adjustment based on delivery of instruction.—A student’s eligibility to receive grants, loans, or work assistance under this title shall be reduced if a financial aid officer determines, in accordance with the discretionary authority provided under this section, that the model or method used to deliver instruction to the student results in a substantially reduced cost of attendance to the student.”.
Section 480 (20 U.S.C. 1087vv) is amended—
(1) in subsection (a)(1), by striking subparagraph (B) and inserting the following:
“(B) Notwithstanding section 478(a), the Secretary shall provide for the use of data from the second preceding tax year to carry out the simplification of applications (including simplification for a subset of applications) used for the estimation and determination of financial aid eligibility. Such simplification shall include the sharing of data between the Internal Revenue Service and the Department, pursuant to the consent of the taxpayer.”; and
(2) in subsection (f)—
(A) in paragraph (2)—
(iii) by adding at the end the following:
“(D) a qualified tuition program (as defined in section 529(b)(1)(A) of the Internal Revenue Code of 1986).”; and
(B) in paragraph (5)(A)(i), by striking “qualified tuition program (as defined in section 529(b)(1)(A) of the Internal Revenue Code of 1986) or other”.
Section 481 (20 U.S.C. 1088) is amended—
(1) in subsection (a)—
(A) in paragraph (2)(A)—
(i) by striking “For the” and inserting the following: “Except as provided in paragraph (3), for the”; and
(B) by adding at the end the following:
“(3) (A) For the purpose of a competency-based education program the term ‘academic year’ shall be the published measured period established by the institution of higher education that is necessary for a student with a normal full-time workload for the course of study the student is pursuing (as measured using the value of competencies or sets of competencies required by such institution and approved by such institution’s accrediting agency or association) to earn—
“(iii) with respect to a non-degree or graduate program, the equivalent of a period described in clause (i) or (ii).
“(B) (i) A competency-based education program that is not a term-based program may be treated as a term-based program for purposes of establishing payment periods for disbursement of loans and grants under this title if—
“(I) the institution of higher education that offers such program charges a flat subscription fee for access to instruction during a period determined by the institution; and
“(II) the institution is able to determine the competencies a student is expected to demonstrate for such subscription period.
“(ii) Clause (i) shall apply even in a case in which instruction or other work with respect to a competency that is expected to be attributable to a subscription period begins prior to such subscription period.
“(iii) In a case in which a competency-based education program offered by an institution of higher education is treated as a term-based program under clause (i), the institution shall review the academic progress of each student enrolled in such program in accordance with section 484(c), except that such review shall occur at the end of each payment period.”;
(2) by amending subsection (b) to read as follows:
“(b) Eligible Program.— (1) For purposes of this title, the term ‘eligible program’ means—
“(A) a program of at least 300 clock hours of instruction, 8 semester hours, or 12 quarter hours, offered during a minimum of 10 weeks; or
“(B) a competency-based program that—
“(2) An eligible program described in paragraph (1) may be offered in whole or in part through telecommunications.
“(3) For purposes of this title, the term ‘eligible program’ does not include a program that loses its eligibility under section 481B(a).
“(4) (A) If an eligible institution enters into a written arrangement with an institution or organization that is not an eligible institution under which such ineligible institution or organization provides the educational program (in whole or in part) of students enrolled in the eligible institution, the educational program provided by such ineligible institution shall be considered to be an eligible program if—
“(i) the ineligible institution or organization has not—
“(I) had its eligibility to participate in the programs under this title terminated by the Secretary;
“(II) voluntarily withdrawn from participation in the programs under this title under a proceeding initiated by the Secretary, accrediting agency or association, guarantor, or the licensing agency for the State in which the institution is located, including a termination, show-cause, or suspension;
“(III) had its certification under subpart 3 of part H to participate in the programs under this title revoked by the Secretary;
“(ii) the educational program offered by the institution that grants the degree or certificate otherwise satisfies the requirements of paragraph (1); and
Part G of title IV (20 U.S.C. 1088 et seq.) is amended, as amended by section 481, is further amended by inserting after section 481A (20 U.S.C. 1088a) the following:
“SEC. 481B. Programmatic loan repayment rates.
“(a) Ineligibility of an educational program based on low repayment rates.—
“(1) IN GENERAL.—With respect to fiscal year 2016 and each succeeding fiscal year, an educational program at an institution of higher education whose loan repayment rate is less than 45 percent for each of the 3 most recent fiscal years for which data are available shall not be considered an eligible program for the fiscal year in which the determination is made and for the 2 succeeding fiscal years, unless, not later than 30 days after receiving notification from the Secretary of the loss of eligibility under this paragraph, the institution appeals the loss of such program’s eligibility to the Secretary.
“(2) APPEAL.—The Secretary shall issue a decision on any such appeal within 45 days after its submission. Such decision may permit a program to be considered an eligible program, if—
“(3) PARTICIPATION RATE INDEX.—
“(A) IN GENERAL.—An institution that demonstrates to the Secretary that a program’s participation rate index is equal to or less than 0.11 for any of the 3 most recent fiscal years for which data is available shall not be subject to paragraph (1).
“(B) INDEX CALCULATION.—The participation rate index for a program shall be determined by multiplying—
“(ii) the quotient that results by dividing—
“(I) the percentage of the program’s regular students, enrolled on at least a half-time basis, who received a covered loan for a 12-month period ending during the 6 months immediately preceding the fiscal year for which the program’s loan repayment rate or the weighted average loan repayment rate is determined, by
“(b) Repayment improvement and assessment of eligibility based on low loan repayment rates.—
“(1) FIRST YEAR.—
“(A) IN GENERAL.—An institution with a program whose loan repayment rate is less than 45 percent for any fiscal year shall establish a repayment improvement task force to prepare a plan to—
“(2) SECOND CONSECUTIVE YEAR.—
“(A) IN GENERAL.—An institution with a program whose loan repayment rate is less than 45 percent for two consecutive fiscal years, shall—
“(c) Programmatic loan repayment rate defined.—
“(1) IN GENERAL.—Except as provided in subsection (d), for purposes of this section, the term ‘loan repayment rate’ means, when used with respect to an educational program at an institution—
“(A) with respect to any fiscal year in which 30 or more current and former students in such program enter repayment on a covered loan received for attendance in such program, the percentage of such current and former students—
“(B) with respect to any fiscal year in which fewer than 30 of the current and former students in such program enter repayment on a covered loan received for attendance in such program, the percentage of such current and former students—
“(2) GUARANTY AGENCY REQUIREMENTS.—The Secretary shall require that each guaranty agency that has insured loans for current or former students of the institution afford such institution a reasonable opportunity (as specified by the Secretary) to review and correct errors in the information required to be provided to the Secretary by the guaranty agency for the purposes of calculating a loan repayment rate for programs at such institution, prior to the calculation of such rate.
“(3) POSITIVE REPAYMENT STATUS.—For purposes of this section, the term ‘positive repayment status’, when used with respect to a borrower of a covered loan, means—
“(A) the borrower has entered repayment on such loan, and such loan is less than 90 days delinquent;
“(C) with respect to a covered loan that is a Federal ONE Loan, the loan is in a deferment described in 469A(b)(1), and with respect to a covered loan made, insured, or guaranteed under part B or made under part D, the loan is in a deferment or forbearance that is comparable to a deferment described in 469A(b)(1).
“(d) Special rules.—
“(1) IN GENERAL.—In the case of a student who has attended and borrowed at more than one institution of higher education or for more than one educational program at an institution, the student (and such student’s subsequent positive repayment status on a covered loan, if applicable)) shall be attributed to each institution of higher education and educational program for attendance at which the student received a loan that entered repayment for the fiscal year for which the loan repayment rate is being calculated.
“(2) DELINQUENT.—A loan on which a payment is made by an institution of higher education, such institutions’s owner, agent, contractor, employee, or any other entity or individual affiliated with such institution, in order to prevent the borrower from being more than 90 days delinquent on the loan, shall be considered more than 90 days delinquent for purposes of this subsection.
“(3) REGULATIONS TO PREVENT EVASIONS.—The Secretary shall prescribe regulations designed to prevent an institution of higher education from evading the application of a loan repayment rate determination under this section to an educational program at such institution through—
“(4) COLLECTION AND REPORTING OF LOAN REPAYMENT RATES.—
“(A) IN GENERAL.—The Secretary shall publish not less often than once every fiscal year a report showing final loan repayment data for each program at each institution of higher education for which a loan repayment rate is calculated under this section.
“(B) PUBLICATION.—The Secretary shall publish the report described in subparagraph (A) by September 30 of each year.
“(e) Transition period.—
“(1) DURING THE TRANSITION PERIOD.—During the transition period, the cohort default rate for each institution of higher education shall be calculated under section 435(m)(1) for each fiscal year for which such rate has not yet been calculated and any requirements with respect to such rates shall continue to apply, except that the loans with respect to which such cohort default rate shall be calculated shall be the covered loans defined in subsection (c)(4).
“(2) AFTER THE TRANSITION PERIOD.—After the transition period, no new cohort default rates shall be calculated for an institution of higher education and any requirements with respect to such rates shall cease to apply.
Section 482 (20 U.S.C. 1089) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(v) by striking subparagraph (E), and redesignating subparagraphs (F) and (G) as subparagraphs (E) and (F), respectively; and
(a) In general.—Section 483 (20 U.S.C. 1090) is amended—
(1) in subsection (a)(3)—
(A) in subparagraph (E), by adding at the end the following: “Notwithstanding the limitations on sharing data described in this paragraph, an institution of higher education may, with explicit written consent of the applicant, provide such information as is necessary to a scholarship granting organization designated by the applicant to assist the applicant in applying for and receiving financial assistance for the applicant’s education at that institution. An organization that receives information pursuant to the preceding sentence shall not maintain, warehouse, sell, or otherwise store or share such information after it has been used to determine the additional aid available for such applicant and the organization shall destroy the information after such determination has been made.”; and
(B) by adding at the end the following:
“(I) FORMAT.—Not later than 1 year after the date of the enactment of the PROSPER Act, the Secretary shall make the electronic version of the forms under this paragraph available through a technology tool optimized for use on mobile devices. Such technology tool shall, at minimum, enable applicants to—
“(J) CONSUMER TESTING.—In developing and maintaining the electronic version of the forms under this paragraph and the technology tool for mobile devices under subparagraph (I), the Secretary shall conduct consumer testing with appropriate persons to ensure the forms and technology tool are designed to be easily usable and understandable by students and families. Such consumer testing shall include—
“(i) current and prospective college students, family members of such students, and other individuals with expertise in student financial assistance application processes;
(2) by amending subsection (f) to read as follows:
“(f) Use of Internal Revenue Service data retrieval tool to populate FAFSA.—
“(1) SIMPLIFICATION EFFORTS.—The Secretary shall—
“(A) make every effort to allow applicants to utilize the current data retrieval tool to transfer, through a rigorous authentication process, data available from the Internal Revenue Service to reduce the amount of original data entry by applicants and strengthen the reliability of data used to calculate expected family contributions, including through the use of technology to—
(b) Technical amendment.—Section 483(a)(9)(C) (20 U.S.C. 1090(a)(9)(C)) is amended by inserting “, including through the tool described in section 485E(c)” before the semicolon.
Section 484 (20 U.S.C. 1091) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking “a degree, certificate, or other program (including a program of study abroad approved for credit by the eligible institution at which such student is enrolled) leading to a” and inserting “an eligible program (including a program of study abroad approved for credit by the eligible institution at which such student is enrolled) leading to a degree, certificate, or other”; and
(3) in subsection (c)—
(A) in paragraph (1)—
(ii) in subparagraph (B)—
(C) by adding at the end the following:
“(4) For purposes of this subsection, the term ‘maximum timeframe’ means—
“(A) with respect to an undergraduate program measured in credit hours, a period that is no longer than 150 percent of the published length of the educational program, as measured in credit hours;
“(B) with respect to an undergraduate program measured in competencies, a period that is no longer than 150 percent of the published length of the educational program, as measured in competencies;
(4) by amending subsection (d) to read as follows:
“(d) Additional student eligibility.—
“(1) ABILITY TO BENEFIT STUDENTS.—In order for a student who does not have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such certificate, to be eligible for any assistance under subpart 1 of part A and parts C, D, and E of this title, the student shall be determined by the institution of higher education as having the ability to benefit from the education offered by the institution of higher education upon satisfactory completion of 6 credit hours or the equivalent coursework that are applicable toward a degree or certificate offered by the institution of higher education.
“(2) HOMESCHOOL STUDENTS.—A student who has completed a secondary school education in a home school setting that is treated as a home school or private school under State law shall be eligible for assistance under subpart 1 of part A and parts C, D, and E of this title.
“(3) SECONDARY EDUCATION PROVIDED BY NONPROFIT CORPORATIONS.—A student who has completed a secondary education provided by a school operating as a nonprofit corporation that offers a program of study determined acceptable for admission at an institution of higher education shall be eligible for assistance under subpart 1 of part A and parts C, D, and E of this title.”.
(5) in subsection (f)(1), by striking “or part E” both places it appears and inserting the following: “, part E (as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act), or part E (as in effect on or after the date of enactment of the PROSPER Act)”;
(7) in subsection (n)—
(B) by adding at the end the following:
“(2) EFFECT OF FAILURE TO REGISTER FOR SELECTIVE SERVICE.—A person who is 26 years of age or older shall not be ineligible for assistance or a benefit provided under this title by reason of failure to present himself for, and submit to, registration under section 3 of the Military Selective Service Act (50 U.S.C. 3802).”; and
Section 484A (20 U.S.C. 1088) is amended—
(1) in subsection (a)(2)(C)—
(2) in subsection (b)—
(B) in paragraph (3)—
(C) by adding at the end the following:
“(4) in collecting any obligation arising from a loan made under part E (as in effect on or after the date of enactment of the PROSPER Act), an institution of higher education that has an agreement with the Secretary pursuant to section 463(a) (as so in effect) shall not be subject to a defense raised by any borrower based on a claim of infancy.”.
Section 484B (20 U.S.C. 1091b) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(ii) by adding at the end the following:
“(B) SPECIAL RULE.—For purposes of subparagraph (A), a student—
(B) in paragraph (3)—
(i) in subparagraph (B), by striking clauses (i) and (ii) and inserting the following:
“(i) 0 percent, if the day the student withdrew occurs when the student has completed (as determined in accordance with subsection (d)) 0 to 24 percent of the payment period or period of enrollment;
“(ii) 25 percent, if the day the student withdrew occurs when the student has completed (as determined in accordance with subsection (d)) 25 to 49 percent of the payment period or period of enrollment;
(C) in paragraph (4)—
(i) in subparagraph (A), by striking “Secretary), the institution of higher education shall contact the borrower” and inserting “Secretary), the institution of higher education shall have discretion to determine whether all or a portion of the late or post-withdrawal disbursement should be made, under a publicized institutional policy. If the institution of higher education determines that a disbursement should be made, the institution shall contact the borrower”; and
(ii) in subparagraph (B) by striking “institution or the student, or both, as may be required under paragraphs (1) and (2) of subsection (b), to the programs under this title in the order specified in” and inserting “institution, as may be required under paragraph (1) of subsection (b), to the programs under this title in accordance with”;
(2) by amending subsection (b) to read as follows:
“(b) Return of title IV program funds.—
“(1) RESPONSIBILITY OF THE INSTITUTION.—The institution shall return not later than 60 days from the determination of withdrawal, in accordance with paragraph (3), the amount of grant and loan assistance awarded under this title that has not been earned by the student, as calculated under subsection (a)(3)(C).
“(2) RESPONSIBILITY OF THE STUDENT.—
“(3) ORDER OF RETURN OF TITLE IV FUNDS.—
“(A) IN GENERAL.—Excess funds returned by the institution in accordance with paragraph (1) shall be credited to awards under subpart 1 of part A for the payment period or period of enrollment for which a return of funds is required.
“(B) REMAINING EXCESSES.—If excess funds remain after repaying all outstanding grant amounts, the remaining excess shall be credited in the following order:
(3) by amending subsection (c) to read as follows:
“(c) Withdrawal date.—
“(1) IN GENERAL.—In this section, the term ‘day the student withdrew’—
“(A) for institutions not required to take attendance, is the date as determined by the institution that—
“(2) SPECIAL RULE.—Notwithstanding paragraph (1), if the institution determines that a student did not begin the withdrawal process, due to illness, accident, grievous personal loss, or other such circumstances beyond the student’s control, the institution may determine the appropriate withdrawal date under its own defined policies.
(a) Use of website to disseminate information.—Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended in the matter preceding subparagraph (A) by striking the second and third sentences and inserting the following: “The information required by this section shall be produced and be made readily available to enrolled and prospective students on the institution’s website (or in other formats upon request).”.
(b) Information on prohibiting copyright infringement.—Section 485(a)(1)(P) (20 U.S.C. 1092(a)(1)(P)) is amended by striking “, including—” and all that follows and inserting a period.
(c) Elimination of certain reporting requirements.—
(1) IN GENERAL.—Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended—
(2) CONFORMING AMENDMENTS.—Section 485(a) (20 U.S.C. 1092(a)) is amended by striking paragraphs (3) through (7).
(d) Exit counseling.—Section 485(b) (20 U.S.C. 1092(b)) is amended—
(1) in paragraph (1)(A)—
(A) in the matter preceding clause (i)—
(C) by inserting before clause (iv), as so redesignated, the following:
“(i) a summary of the outstanding balance of principal and interest due on the loans made to the borrower under this title;
“(ii) an explanation of the grace period preceding repayment and the expected date that the borrower will enter repayment;
“(iii) an explanation of cases of interest capitalization and that the borrower has the option to pay any interest that has accrued while the borrower was in school or that may accrue during the grace period preceding repayment or during an authorized period of deferment or forbearance, prior to the capitalization of the interest;”;
(D) in clause (iv), as so redesignated—
(H) by adding at the end the following:
“(xiii) for each of the borrower’s loans made under this title for which the borrower is receiving counseling under this subsection, the contact information for the servicer of the loan and a link to the Website of such servicer; and
“(xiv) an explanation that an individual has a right to annually request a disclosure of information collected by a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (15 U.S.C. 1681j(a)).”;
(e) Departmental Publication of Descriptions of Assistance Programs.—The third sentence of section 485(d)(1) (20 U.S.C. 1092(d)(1)) is amended by striking “part D” and inserting “part D or E”.
(f) Amendments to Clery Act.—
(1) PREVENTING INTERFERENCE WITH CRIMINAL JUSTICE PROCEEDINGS; TIMELY WARNINGS; CONSISTENCY OF INSTITUTIONAL CRIME REPORTING.—Section 485(f) (20 U.S.C. 1092(f)) is amended—
(A) by striking paragraph (3) and inserting the following:
“(3) Each institution participating in any program under this title, other than a foreign institution of higher education, shall make timely reports to the campus community on crimes described in paragraph (1)(F) that have been reported to campus security officials and pose a serious and continuing threat to other students and employees’ safety. Such reports shall withhold the names of victims as confidential and shall be provided in a timely manner, except that an institution may delay issuing a report if the issuance would compromise ongoing law enforcement efforts, such as efforts to apprehend a suspect. The report shall also include information designed to assist students and employees in staying safe and avoiding similar occurrences to the extent such information is available and appropriate to include. In assessing institutional compliance with this section, the Secretary shall defer to the institution’s determination of whether a particular crime poses a serious and continuing threat to the campus community, and the timeliness of such warning, provided that, in making its decision, the institution acted reasonably and based on the considered professional judgement of campus security officials, based on the facts and circumstances known at the time.”;
(C) by inserting after paragraph (17) the following:
“(18) Nothing in this subsection may be construed to prohibit an institution of higher education from delaying the initiation of, or suspending, an investigation or institutional disciplinary proceeding involving an allegation of sexual assault in response to a request from a law enforcement agency or a prosecutor to delay the initiation of, or suspend, the investigation or proceeding, and any delay or suspension of such an investigation or proceeding in response to such a request may not serve as the grounds for any sanction or audit finding against the institution or for the suspension or termination of the institution’s participation in any program under this title.
“(19) (A) Reporting carried out under this subsection shall be conducted in a manner to ensure maximum consistency with the Uniform Crime Reporting Program of the Department of Justice.
“(B) The Secretary shall require institutions of higher education to report crime statistics under this section using definitions of such crimes, when available, from the Uniform Crime Reporting Program of the Department of Justice.
“(C) The Secretary shall maintain a publicly available and updated list of all applicable definitions from the Uniform Crime Reporting Program of the Department of Justice.
“(D) With respect to a report under this subsection, in the case of a crime for which no Uniform Crime Reporting Program of the Department of Justice definition exists, the Secretary shall require that institutions of higher education report such crime according to a definition provided by the Secretary.
“(E) An institution of higher education that reports a crime described in subparagraph (D) shall not be subject to any penalty or fine for reporting inaccuracies or omissions if the institution of higher education can demonstrate that it made a reasonable and good faith effort to report crimes consistent with the definition provided by the Secretary.
“(F) With respect to a report under this subsection, the Secretary shall require institutions of higher education to follow the Hierarchy Rule for reporting crimes under the Uniform Crime Reporting Program of the Department of Justice, so as to minimize duplicate reporting and ensure greater consistency with national crime reporting systems.”.
(2) DUE PROCESS REQUIREMENTS FOR INSTITUTIONAL DISCIPLINARY PROCEEDINGS.—Section 485(f)(8)(B)(iv)(I) (20 U.S.C. 1092(f)(8)(B)(iv)(I)) is amended to read as follows:
“(I) the investigation of the allegation and any institutional disciplinary proceeding in response to the allegation shall be prompt, impartial, and fair to both the accuser and the accused by, at a minimum—
“(aa) providing all parties to the proceeding with adequate written notice of the allegation not later than 2 weeks prior to the start of any formal hearing or similar adjudicatory proceeding, and including in such notice a description of all rights and responsibilities under the proceeding, a statement of all relevant details of the allegation, and a specific statement of the sanctions which may be imposed;
“(bb) providing each person against whom the allegation is made with a meaningful opportunity to admit or contest the allegation;
“(cc) ensuring that all parties to the proceeding have access to all material evidence not later than one week prior to the start of any formal hearing or similar adjudicatory proceeding;
“(dd) ensuring that the proceeding is carried out free from conflicts of interest by ensuring that there is no commingling of administrative or adjudicative roles; and
“(ee) ensuring that the investigation and proceeding shall be conducted by officials who receive annual education on issues related to domestic violence, dating violence, sexual assault, and stalking, and on how to conduct an investigation and an institutional disciplinary proceeding that protects the safety of victims, ensures fairness for both the accuser and the accused, and promotes accountability;”.
(3) ESTABLISHMENT OF STANDARD OF EVIDENCE FOR INSTITUTIONAL DISCIPLINARY PROCEEDINGS.—
(A) INCLUSION IN STATEMENT OF POLICY.—Section 485(f)(8)(B) (20 U.S.C. 1092(f)(8)(B)) is amended by adding at the end the following new clause:
“(viii) The establishment of a standard of evidence that will be used in institutional disciplinary proceedings involving allegations of sexual assault, which may be based on such standards and criteria as the institution considers appropriate (including the institution’s culture, history, and mission, the values reflected in its student code of conduct, and the purpose of the institutional disciplinary proceedings) so long as the standard is not arbitrary or capricious and is applied consistently throughout all such proceedings.”.
(B) CONFORMING AMENDMENTS.—Section 485(f)(8)(B)(iv) (20 U.S.C. 1092(f)(8)(B)(iv)) is amended—
(4) EDUCATION MODULES FOR OFFICIALS CONDUCTING INVESTIGATIONS AND INSTITUTIONAL DISCIPLINARY PROCEEDINGS.—Section 485(f)(8) (20 U.S.C. 1092(f)(8)) is amended by adding at the end the following new subparagraph:
“(D) In consultation with experts from institutions of higher education, law enforcement agencies, advocates for sexual assault victims, experts in due process, and other appropriate persons, the Secretary shall create and regularly update modules which an institution of higher education may use to provide the annual education described in subparagraph (B)(iv)(I)(ee) for officials conducting investigations and institutional disciplinary proceedings involving allegations described in such subparagraph. If the institution uses such modules to provide the education described in such subparagraph, the institution shall be considered to meet any requirement under such subparagraph or any other Federal law regarding the education provided to officials conducting such investigations and proceedings.”.
(g) Modification of certain reporting requirements.—
(1) FIRE SAFETY.—Section 485(i) (20 U.S.C. 1092(i)) is amended to read as follows:
“(i) Fire safety reports.—
“(1) ANNUAL REPORT.—Each eligible institution participating in any program under this title that maintains on-campus student housing facilities shall, on an annual basis, publish a fire safety report, which shall contain information with respect to the campus fire safety practices and standards of that institution, statistics on any fire related incidents or injuries, and any preventative measures or technologies.
“(2) RULES OF CONSTRUCTION.—Nothing in this subsection shall be construed to—
“(A) authorize the Secretary to require particular policies, procedures, programs, or practices by institutions of higher education with respect to fire safety;
“(B) affect section 444 of the General Education Provisions Act (commonly known as the ‘Family Education Rights and Privacy Act of 1974’) or the regulations issued under section 264 of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 note);
(2) MISSING PERSONS PROCEDURES.—
(A) IN GENERAL.—Section 485(j)(1) (20 U.S.C. 1092(j)(1)) is amended to read as follows:
“(1) IN GENERAL.—Each institution of higher education that provides on-campus housing and participates in any program under this title shall establish a missing student policy for students who reside in on-campus housing that, at a minimum, informs each residing student that the institution will notify such student’s designated emergency contact and the appropriate law enforcement agency not later than 24 hours after the time that the student is determined missing, and in the case of a student who is under 18 years of age, the institution will notify a custodial parent or guardian.”.
(B) RULE OF CONSTRUCTION.—Section 485(j)(2) (20 U.S.C. 1092(j)(2)) is amended—
(h) Annual counseling.—Section 485(l) (20 U.S.C. 1092(l)) is amended to read as follows:
“(l) Annual financial aid counseling.—
“(1) ANNUAL DISCLOSURE REQUIRED.—
“(A) IN GENERAL.—Each eligible institution shall ensure, and annually affirm to the Secretary, that each individual enrolled at such institution who receives a Federal Pell Grant or a loan made under this title (other than a Federal Direct Consolidation Loan or Federal ONE Consolidation Loan) receives comprehensive information on the terms and conditions of such Federal Pell Grant or loan and the responsibilities the individual has with respect to such Federal Pell Grant or loan. Such information shall be provided, for each award year for which the individual receives such Federal Pell Grant or loan, in a simple and understandable manner—
“(B) USE OF INTERACTIVE PROGRAMS.—In the case of institutions not using the online counseling tool described in subsection (n)(1)(B), the Secretary shall require such institutions to carry out the requirements of subparagraph (A)—
“(2) ALL INDIVIDUALS.—The information to be provided under paragraph (1) to each individual receiving counseling under this subsection shall include the following:
“(A) An explanation of how the student may budget for typical educational expenses and a sample budget based on the cost of attendance for the institution.
“(B) An explanation that an individual has a right to annually request a disclosure of information collected by a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (15 U.S.C. 1681j(a)).
“(3) STUDENTS RECEIVING FEDERAL PELL GRANTS.—The information to be provided under paragraph (1) to each student receiving a Federal Pell Grant shall include the following:
“(B) An explanation of approved educational expenses for which the student may use the Federal Pell Grant.
“(D) An explanation of the maximum number of semesters or equivalent for which the student may be eligible to receive a Federal Pell Grant, and a statement of the amount of time remaining for which the student may be eligible to receive a Federal Pell Grant.
“(E) An explanation that if the student transfers to another institution not all of the student’s courses may be acceptable to apply toward meeting specific degree or program requirements at such institution, but the amount of time remaining for which a student may be eligible to receive a Federal Pell Grant, as provided under subparagraph (D), will not change.
“(4) BORROWERS RECEIVING LOANS MADE THIS TITLE (OTHER THAN FEDERAL DIRECT PLUS LOANS MADE ON BEHALF OF DEPENDENT STUDENTS OR FEDERAL ONE PARENT LOANS).—The information to be provided under paragraph (1) to a borrower of a loan made under this title (other than other than a Federal Direct PLUS Loan made on behalf of a dependent student or a Federal ONE Parent Loan) shall include the following:
“(A) To the extent practicable, the effect of accepting the loan to be disbursed on the eligibility of the borrower for other forms of student financial assistance.
“(C) An explanation that the borrower is not required to accept the full amount of the loan offered to the borrower.
“(D) An explanation that the borrower should consider accepting any grant, scholarship, or State or Federal work-study jobs for which the borrower is eligible prior to accepting Federal student loans.
“(E) An explanation of treatment of loans made under this title and private education loans in bankruptcy, and an explanation that if a borrower decides to take out a private education loan—
“(ii) the proposed private education loan may impact the borrower’s potential eligibility for other financial assistance, including Federal financial assistance under this title; and
“(iii) the borrower has a right—
“(F) An explanation of the approved educational expenses for which the borrower may use a loan made under this title.
“(H) Information on interest, including the annual percentage rate of such loan, as calculated using the standard 10-year repayment term, and how interest accrues and is capitalized during periods when the interest is not paid by the borrower.
“(J) The definition of half-time enrollment at the institution, during regular terms and summer school, if applicable, and the consequences of not maintaining at least half-time enrollment.
“(K) An explanation of the importance of contacting the appropriate offices at the institution of higher education if the borrower withdraws prior to completing the borrower’s program of study so that the institution can provide exit counseling, including information regarding the borrower’s repayment options and loan consolidation.
“(L) For a first-time borrower or a borrower of a loan under this title who owes no principal or interest on such loan—
“(i) a statement of the anticipated balance on the loan for which the borrower is receiving counseling under this subsection;
“(M) For a borrower with an outstanding balance of principal or interest due on a loan made under this title—
“(ii) based on such outstanding balance, the anticipated monthly payment amount under the standard repayment plan, and the income-based repayment plan under section 466(d) or 493C, as determined using available percentile data from the Bureau of Labor Statistics of the starting salary for the occupation the borrower intends to be employed; and
“(N) The obligation of the borrower to repay the full amount of the loan, regardless of whether the borrower completes or does not complete the program in which the borrower is enrolled within the regular time for program completion.
“(O) The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation, and a notice of the institution’s most recent loan repayment rate (as defined in section 481B) for the educational program in which the borrower is enrolled, an explanation of the loan repayment rate, and the most recent national average loan repayment rate for an educational program.
“(5) BORROWERS RECEIVING FEDERAL DIRECT PLUS LOANS FOR DEPENDENT STUDENTS OR FEDERAL ONE PARENT LOANS.—The information to be provided under paragraph (1) to a borrower of a Federal Direct PLUS Loan for a dependent student or a Federal ONE Parent Loan shall include the following:
“(A) The information described in subparagraphs (A) through (C) and (N) through (Q) of paragraph (4).
“(F) For a first-time borrower of a loan or a borrower of a loan under this title who owes no principal or interest on such loan—
“(i) a statement of the anticipated balance on the loan for which the borrower is receiving counseling under this subsection;
“(ii) based on such anticipated balance, the anticipated monthly payment amount under the standard repayment plan; and
“(iii) an estimate of the projected monthly payment amount under the standard repayment plan, based on the average cumulative indebtedness of other borrowers of loans made under this title on behalf of dependent students who are in the same program of study as the student on whose behalf the borrower borrowed the loan.
“(G) For a borrower with an outstanding balance of principal or interest due on such loan—
“(ii) based on such outstanding balance, the anticipated monthly payment amount under the standard repayment plan; and
“(iii) an estimate of the projected monthly payment amount under the standard repayment plan, based on—
“(II) the anticipated outstanding balance on the loan for which the borrower is receiving counseling under this subsection; and
“(III) a projection for any other Federal Direct PLUS Loan made on behalf of the dependent student or Federal ONE Parent Loan that the borrower is reasonably expected to accept during the program of study of such student based on at least the expected increase in the cost of attendance of such program.
“(6) ANNUAL LOAN ACCEPTANCE.—Prior to making the first disbursement of a loan made under this title (other than a Federal Direct Consolidation Loan or Federal ONE Consolidation Loan) to a borrower for an award year, an eligible institution, shall, as part of carrying out the counseling requirements of this subsection for the loan, ensure that after receiving the applicable counseling under paragraphs (2), (4), and (5) for the loan the borrower accepts the loan for such award year by—
(i) Online counseling tools.—Section 485 (20 U.S.C. 1092) is further amended by adding at the end the following:
“(n) Online counseling tools.—
“(1) IN GENERAL.—Beginning not later than 1 year after the date of enactment of the PROSPER Act, the Secretary shall maintain—
“(2) REQUIREMENTS OF TOOLS.—In maintaining the online counseling tools described in paragraph (1), the Secretary shall ensure that each such tool is—
“(A) consumer tested to ensure that the tool is effective in helping individuals understand their rights and obligations with respect to borrowing a loan made this title or receiving a Federal Pell Grant;
“(3) RECORD OF COUNSELING COMPLETION.—The Secretary shall—
“(A) use each online counseling tool described in paragraph (1) to keep a record of which individuals have received counseling using the tool, and notify the applicable institutions of the individual’s completion of such counseling;
“(B) in the case of a borrower who receives annual counseling for a loan made under this title using the tool described in paragraph (1)(B), notify the borrower by when the borrower should accept, in a manner described in subsection (l)(6), the loan for which the borrower has received such counseling; and
(j) Preventing hazing on campus.—Section 485 (20 U.S.C. 1092) is further amended by adding at the end the following:
“(o) Preventing hazing on campus.—
“(1) SENSE OF CONGRESS.—It is the Sense of Congress that—
“(A) institutions of higher education should have clear policies that prohibit unsafe practices, such as hazing, on campus;
“(B) institutions of higher education should ensure each student organization understands what is considered an unsafe practice;
“(C) student organizations on campus should ensure their policies and activities do not endanger students safety or cause harm to students;
“(D) administrators and faculty should take seriously any threats or acts of harm to students through activities organized by student organizations and act quickly to prevent any potential harm to students by these groups;
“(2) DISCLOSURE OF POLICIES.—Each institution of higher education participating in any program under this title shall ensure that—
“(3) HAZING DEFINED.—In this subsection, the term ‘hazing’ means any intentional, knowing, or reckless act committed by a student, or a former student, of an institution of higher education, whether individually or with other persons, against another student, that—
Section 485E (20 U.S.C. 1092f) is amended—
(1) in subsection (b)—
(A) in paragraph (2)—
(i) strike “The Secretary,” and insert “To improve the financial and economic literacy of students and parents of students in order to make informed decisions with respect to financing postsecondary education, the Secretary,”;
(iv) by adding at the end the following:
“(B) create an online platform—
(2) by adding at the end the following:
“ (c) Online estimator tool.—
“(1) IN GENERAL.—Not later than 1 year after the date of enactment of the PROSPER Act, the Secretary, in consultation with States, institutions of higher education, and other individuals with experience or expertise in student financial assistance application processes, shall develop an early estimator tool to be available online and through a mobile application, which—
“(B) with respect to each institution of higher education that participates in a program under this title selected by an individual for purposes of the estimator tool, provides the individual with the net price (as defined in section 132) for the income category described in paragraph (2) that is determined on the basis of the information under subparagraph (A)(i) of this paragraph entered by the individual;
“(C) includes a clear and conspicuous disclaimer that the amounts calculated using the estimator tool are estimates based on limited financial information, and that—
“(i) each such estimate—
“(I) in the case of an estimate under subparagraph (A), is only an estimate and does not represent a final determination, or actual award, of financial assistance under this title;
“(3) CONSUMER TESTING.—In developing and maintaining the estimator tool described in paragraph (1), the Secretary shall conduct consumer testing with appropriate persons, including current and prospective college students, family members of such students, and other individuals with expertise in student financial assistance application processes and college access, to ensure that such tool is easily understandable by students and families and effective in communicating early aid eligibility.
“(d) Pell table.—
“(1) IN GENERAL.—The Secretary shall develop, and annually update at the beginning of each award year, the following electronic tables to be utilized in carrying out this section and containing the information described in paragraph (2) of this subsection:
“(2) INFORMATION.—Each electronic table under paragraph (1), with respect to the category of students to which the table applies for the most recently completed award year for which information is available, and disaggregated in accordance with paragraph (3), shall contain the following information:
“(A) The percentage of undergraduate students attending an institution of higher education on a full-time, full-academic year basis who file the financial aid form prescribed under section 483 for the award year and received, for their first academic year during such award year (and not for any additional payment periods after such first academic year), the following:
“(i) A Federal Pell Grant equal to the maximum amount of a Federal Pell Grant award determined under section 401(b)(2) for such award year.
“(B) The dollar amounts equal to—
Section 486 (20 U.S.C. 1093(b)) is repealed.
(a) Program participation agreements.—Section 487(a) (20 U.S.C. 1094(a)) is amended in the matter before paragraph (1) by striking “, except with respect to a program under subpart 4 of part A”.
(b) Perkins conforming changes.—Section 487(a)(5) (20 U.S.C. 1094(a)(5)) is amended by striking “and, in the case of an institution participating in a program under part B or part E, to holders of loans made to the institution’s students under such parts”.
(c) Certifications to lenders.—Section 487(a) (20 U.S.C. 1094(a)) is amended by striking paragraph (6).
(d) State grant assistance.—Section 487(a)(9) (20 U.S.C. 1094(a)(9)) is amended by striking “in a program under part B or D” and inserting “in a loan program under this title”.
(e) Opioid misuse and substance abuse prevention program.—Section 487(a)(10) (20 U.S.C. 1094(a)(10)) is amended by inserting “under section 118” after “drug abuse prevention program”.
(f) Repayment success plan.—Section 487(a)(14) (20 U.S.C. 1094(a)(14)) is amended—
(1) by striking “under part B or D” both places it appears and inserting “a loan program under this title”;
(g) Commissions to Third-Party Entities.—Section 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended—
(1) by striking “The institution” and inserting “(A) Except as provided in subparagraph (B), the institution”; and
(2) by adding at the end the following new subparagraph:
“(B) An institution described in section 101 may provide payment, based on—
“(i) the amount of tuition generated by the institution from student enrollment, to a third-party entity that provides a set of services to the institution that includes student recruitment services, regardless of whether the third-party entity is affiliated with an institution that provides educational services other than the institution providing such payment, if—
“(II) the third-party entity does not make compensation payments to its employees that would be prohibited under subparagraph (A) if such payments were made by the institution;
“(III) the set of services provided to the institution by the third-party entity include services in addition to student recruitment services, and the institution does not pay the third-party entity solely or separately for student recruitment services provided by the third-party entity; and
“(IV) any student recruitment information available to the third-party entity, including personally identifiable information, will not be used by, shared with, or sold to any other person or entity, including any institution that is affiliated with the third-party entity, unless written consent is provided by the student; and
“(ii) students successfully completing their educational programs, to persons who were engaged in recruiting such students, but solely to the extent that such payments—
(h) Clarification of Proof of Authority to Operate Within a State.—Section 487(a)(21) (20 U.S.C. 1094(a)(21)) is amended by striking “within a State” and inserting “within a State in which it maintains a physical location”.
(i) Distribution of Voter Registration Forms.—Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is amended to read as follows:
“(23) The institution, if located in a State to which section 4(b) of the National Voter Registration Act of 1993 (42 U.S.C. 1973gg–2(b)) does not apply, will make a good faith effort to distribute, including through electronic transmission, voter registration forms to students enrolled and physically in attendance at the institution.”.
(j) Prohibiting Copyright Infringement.—Section 487(a)(29) (20 U.S.C. 1094(a)(29)) is amended to read as follows:
(k) Modifications to preferred lender list requirements.—Section 487(h)(1) (20 U.S.C. 1094(h)(1)) is amended—
(l) Elimination of non-title IV revenue requirement.—Section 487 (20 U.S.C. 1094), is further amended—
(m) Conforming amendments.—The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended—
(1) in section 487(a) (20 U.S.C. 1094(a)), as amended by this section—
(2) in section 487(c)(1)(A)(iii) (20 U.S.C. 1094(c)(1)(A)(iii)), by striking “section 102(a)(1)(C)” and inserting “section 102(a)(1)”; and
(3) in section 487(h)(4) (20 U.S.C. 1094(h)(4)), as redesignated by subsection (l)(3), by striking “section 102” and inserting “section 101 or 102”.
Section 487A (20 U.S.C. 1094a) is amended—
(1) in subsection (a)—
(2) in subsection (b)—
(A) in paragraph (2)—
(ii) by striking the first sentence and inserting “The Secretary shall review the experience, and rigorously evaluate the activities, of all institutions participating as experimental sites and shall, on an annual basis, submit a report based on the review and evaluation findings to the authorizing committees.”;
(B) in paragraph (3), by amending subparagraph (A) to read as follows:
“(A) IN GENERAL.—
“(i) EXPERIMENTAL SITES.—The Secretary is authorized periodically to select a limited number of institutions for voluntary participation as experimental sites to provide recommendations to the Secretary and to the Congress on the impact and effectiveness of proposed regulations or new management initiatives.
“(ii) CONGRESSIONAL NOTICE AND COMMENTS REQUIRED.—
“(I) NOTICE.—Prior to announcing a new experimental site and inviting institutions to participate, the Secretary shall provide to the authorizing committees a notice that shall include—
Section 488 (20 U.S.C. 1095) is amended—
Section 489(a) (20 U.S.C. 1096(a)) is amended—
Section 491 (20 U.S.C. 1098) is repealed.
Section 492 (20 U.S.C. 1098a) is amended—
(2) by striking subsections (a) and (b) and inserting the following:
“(a) In general.—The Secretary may, in accordance with this section, issue such regulations as are reasonably necessary to ensure compliance with this title.
“(b) Public involvement.—The Secretary shall obtain public involvement in the development of proposed regulations for this title. Before carrying out a negotiated rulemaking process as described in subsection (d) or publishing in the Federal Register proposed regulations to carry out this title, the Secretary shall obtain advice and recommendations from individuals, and representatives of groups, involved in student financial assistance programs under this title, such as students, institutions of higher education, financial aid administrators, accrediting agencies or associations, State student grant agencies, guaranty agencies, lenders, secondary markets, loan servicers, guaranty agency servicers, and collection agencies.
“(c) Meetings and electronic exchange.—
“(1) IN GENERAL.—The Secretary shall provide for a comprehensive discussion and exchange of information concerning the implementation of this title through such mechanisms as regional meetings and electronic exchanges of information. Such regional meetings and electronic exchanges of information shall be public and notice of such meetings and exchanges shall be provided to—
“(2) CONSIDERATION.—The Secretary shall take into account the information received through such mechanisms in the development of proposed regulations and shall publish a summary of such information in the Federal Register prior to beginning the negotiated rulemaking process described in subsection (d).
“(d) Negotiated rulemaking process.—
“(1) NEGOTIATED RULEMAKING REQUIRED.—All regulations pertaining to this title that are promulgated after the date of the enactment of this paragraph shall be subject to the negotiated rulemaking process described in this subsection (including the selection of the issues to be negotiated), unless the Secretary—
“(A) determines that applying such a requirement with respect to given regulations is impracticable, unnecessary, or contrary to the public interest (within the meaning of section 553(b)(3)(B) of title 5, United States Code);
“(2) CONGRESSIONAL NOTICE AND COMMENTS REQUIRED.—
“(A) NOTICE.—The Secretary shall provide to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate notice of the intent establish a negotiated rulemaking committee that shall include—
“(3) PROCESS.—After obtaining advice and recommendations under subsections (b) and (c), and before publishing proposed regulations, the Secretary shall—
“(B) select individuals to participate in such process—
“(C) prepare a draft of proposed policy options, which shall take into account comments received from both the public and the authorizing committees, that shall be provided to the individuals selected by the Secretary under subparagraph (B) and such authorizing committees not less than 15 days before the first meeting under such process; and
“(D) ensure that the negotiation process is conducted in a timely manner in order that the final regulations may be issued by the Secretary within the 360-day period described in section 437(e) of the General Education Provisions Act (20 U.S.C. 1232(e)).
“(e) Proposed rulemaking.—If the Secretary determines pursuant to subsection (d)(1) that a negotiated rulemaking process is impracticable, unnecessary, or contrary to the public interest (within the meaning of section 553(b)(3)(B) of title 5, United States Code), or the individuals selected to participate in the process under subsection (d)(3)(B) fail to reach unanimous agreement on an issue being negotiated, the Secretary may propose regulations subject to subsection (f).
“(f) Requirements for proposed regulations.—Regulations proposed pursuant to subsection (e) shall meet the following procedural requirements:
“(1) CONGRESSIONAL NOTICE.—Regardless of whether congressional notice was submitted under subsection (d)(2), the Secretary shall provide to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate notice that shall include—
“(2) CONGRESSIONAL COMMENTS.—The Secretary may not proceed with the rulemaking process—
“(3) COMMENT AND REVIEW PERIOD.—The comment and review period for the proposed regulation shall be 90 days unless an emergency requires a shorter period, in which case such period shall be not less than 45 days and the Secretary shall—
“(A) designate the proposed regulation as an emergency, with an explanation of the emergency, in the notice to the Congress under paragraph (1);
“(4) INDEPENDENT ASSESSMENT.—No regulation shall be made final after the comment and review period until the Secretary has published in the Federal Register an independent assessment (which shall include a representative sampling of institutions of higher education based on sector, enrollment, urban, suburban, or rural character, and other factors impacted by the regulation) of—
“(A) the burden, including the time, cost, and paperwork burden, the final regulation will impose on institutions and other entities that may be impacted by the regulation;
Section 493C (20 U.S.C. 1098e) is amended by adding at the end the following:
Section 493D(a) (20 U.S.C. 1098f) is amended, by striking “or 464(c)(2)(A)(iii)” and inserting “464(c)(2)(A)(iii) (as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a)), or 469A(a)(2)(A)(iii)”.
(a) Contracts for supplies and services.—
(1) IN GENERAL.—Part G of title IV (20 U.S.C. 1088 et seq.), as amended by this part, is further amended by adding at the end the following:
“(a) Contracts for Supplies and Services.—
“(1) IN GENERAL.—The Secretary shall, to the extent practicable, award contracts for origination, servicing, and collection described in subsection (b). In awarding such contracts, the Secretary shall ensure that such services and supplies are provided at competitive prices.
“(2) ENTITIES.—The entities with which the Secretary may enter into contracts shall include entities qualified to provide such services and supplies and will comply with the procedures applicable to the award of such contracts. In the case of awarding contracts for the origination, servicing, and collection of loans under parts D and E, the Secretary shall enter into contracts with entities that have extensive and relevant experience and demonstrated effectiveness. The entities with which the Secretary may enter into such contracts may include, where practicable, agencies with agreements with the Secretary under sections 428(b) and (c), if such agencies meet the qualifications as determined by the Secretary under this subsection and if those agencies have such experience and demonstrated effectiveness. In awarding contracts to such State agencies, the Secretary shall, to the extent practicable and consistent with the purposes of parts D and E, give consideration to State agencies with a history of high quality performance to perform services for institutions of higher education within their State.
“(3) ALLOCATIONS.—
“(A) IN GENERAL.—Except as provided in subparagraph (B), the Secretary shall allocate new borrower loan accounts to entities awarded a contract under this section on the basis of—
“(i) the performance of each such entity compared to other such entities performing similar work using common performance metrics (which may take into account, as appropriate, portfolio risk factors, including a borrower’s time in repayment, category of institution of higher education attended, and completion of an educational program), as determined by the Secretary; and
“(b) Contracts for Origination, Servicing, and Data Systems.—The Secretary may enter into contracts for—
“(c) Common Performance Manual.—
“(1) CONSULTATION.—Not later than 180 days after the date of enactment of the PROSPER Act and biannually thereafter, the Secretary shall consult (in writing and in person) with entities awarded contracts for loan servicing under section 456 (as in effect on the day before the date of enactment of the PROSPER Act) and this section, to the extent practicable, to develop and update as necessary, a guidance manual for entities awarded contracts for loan servicing under this section that provides such entities with best practices to ensure borrowers receive adequate and consistent service from such entities.
“(d) Federal preemption.—
“(1) IN GENERAL.—Covered activities shall not be subject to any law or other requirement of any State or political subdivision of a State with respect to—
“(2) SERVICING AND COLLECTION.—The requirements of this section with respect to any covered activity shall preempt any law or other requirement of a State or political subdivision of a State to the extent that such law or other requirement would, in the absence of this subsection, apply to such covered activity.
“(3) STATE LICENSES.—No qualified entity engaged in a covered activity shall be required to obtain a license from, or pay a licensing fee or other assessment to, any State or political subdivision of a State relating to such covered activity.
(2) CONFORMING AMENDMENT.—Section 456 (20 U.S.C. 1087f) is repealed.
(b) Matching program.—Part G of title IV (20 U.S.C. 1088 et seq.), as amended by subsection (a), is further amended by adding at the end the following:
“(a) In General.—The Secretary of Education and the Secretary of Veterans Affairs shall carry out a computer matching program under which the Secretary of Education identifies, on at least a quarterly basis, borrowers—
“(b) Borrower notification.—With respect to each borrower who is identified under subsection (a), the Secretary shall, as soon as practicable after such identification—
“(c) Data Collection and Report to Congress.—
“(1) IN GENERAL.—The Secretary shall annually collect and submit to the Committees on Education and the Workforce and Veterans’ Affairs of the House of Representatives and the Committees on Health, Education, Labor, and Pensions and Veterans Affairs of the Senate, data about borrowers applying for and receiving loan discharges under section 437(a), which shall be disaggregated in the manner described in paragraph (2) and include the following:
(a) Regulations repealed.—The following regulations relating to State authorization (including any supplements or revisions to such regulations) are repealed and shall have no force or effect:
(b) Prohibition on State authorization regulations.—The Secretary of Education shall not, on or after the date of enactment of this Act, promulgate or enforce any regulation or rule with respect to the State authorization for institutions of higher education to operate within a State for any purpose under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(c) Institutional responsibility; treatment of religious institutions.—Section 495 (20 U.S.C. 1099a) is amended by striking subsection (b) and inserting the following:
“(b) Institutional responsibility.—Each institution of higher education shall provide evidence to the Secretary that the institution has authority to operate within each State in which it maintains a physical location at the time the institution is certified under subpart 3.
Section 496 (20 U.S.C. 1099b) is amended—
(2) in subsection (a)—
(A) in paragraph (2), by amending subparagraph (A) to read as follows:
“(A) for the purpose of participation in programs under this Act or other programs administered by the Department of Education or other Federal agencies, has a voluntary membership of institutions of higher education or other entities and has as a principal purpose the accrediting of institutions of higher education or programs;”;
(C) in paragraph (4)—
(i) in subparagraph (A)—
(ii) by striking subparagraph (B) and inserting the following:
“(B) such agency or association demonstrates the ability to review, evaluate, and assess the quality of any instruction delivery model or method such agency or association has or seeks to include within its scope of recognition, without giving preference to or differentially treating a particular instruction delivery model or method offered by an institution of higher education or program except that, in a case in which the instruction delivery model allows for the separation of the student from the instructor—
“(i) the agency or association requires the institution to have processes through which the institution establishes that the student who registers in a course or program is the same student who participates in, including, to the extent practicable, testing or other assessment, and completes the program and receives the academic credit; and
“(C) if such an agency or association evaluates or assesses the quality of competency-based education programs, the agency’s or association’s evaluation or assessment —
“(i) shall address effectively the quality of an institution’s competency-based education programs as set forth in paragraph (5), except that the agency or association is not required to have separate standards, procedures, or policies for the evaluation of competency-based education;
(D) by amending paragraph (5) to read as follows:
“(5) the standards for accreditation of the agency or association assess the institution’s success with respect to student learning and educational outcomes in relation to the institution’s mission, which may include different standards for different institutions or programs, except that the standards shall include consideration of student learning and educational outcomes in relation to expected measures of student learning and educational outcomes, which at the agency’s or association’s discretion are established—
“(B) by the institution or program, at the institution or program level, as the case may be, if the institution or program—
“(ii) measures and evaluates student learning, educational outcomes, and, if appropriate, other outcomes of the students who complete their program of study;
(3) in subsection (b)—
(B) in the matter preceding paragraph (1), by striking “separate” and inserting “separately incorporated”;
(4) in subsection (c)—
(A) in paragraph (1)—
(B) by striking paragraph (5) and redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively;
(C) by inserting after paragraph (1), the following:
“(2) develops a mechanism to identify institutions or programs accredited by the agency or association that may be experiencing difficulties accomplishing their missions with respect to the student learning and educational outcome goals established under subsection (a)(5) and—
“(A) as appropriate, uses information such as student loan default or repayment rates, retention or graduation rates, evidence of student learning, financial data, and other indicators to identify such institutions;
(E) by amending paragraph (5), as so redesignated, to read as follows:
“(5) establishes and applies or maintains policies which ensure that any substantive change to the educational mission, program, or programs of an institution after the agency or association has granted the institution accreditation or preaccreditation status does not adversely affect the capacity of the institution to continue to meet the agency’s or association’s standards for such accreditation or preaccreditation status, which shall include policies that—
“(A) require the institution to obtain the agency’s or association’s approval of the substantive change before the agency or association includes the change in the scope of the institution’s accreditation or preaccreditation status; and
“(B) define substantive change to include, at a minimum—
(F) in paragraph (7)—
(6) by striking subsection (h) and inserting the following:
“(h) Change of accrediting agency or association.—
“(1) IN GENERAL.—The Secretary shall not recognize the accreditation of any otherwise eligible institution of higher education if the institution is in the process of changing its accrediting agency or association and is subject to one or more of the following actions, unless the eligible institution submits to the Secretary materials demonstrating a reasonable cause for changing the accrediting agency or association:
“(A) A pending or final action brought by a State agency to suspend, revoke, withdraw, or terminate the institution’s legal authority to provide postsecondary education in the State.
“(B) A decision by a recognized accrediting agency or association to deny accreditation or preaccreditation to the institution.
“(2) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed to restrict the ability of an institution of higher education not subject to an action described in paragraph (1) and otherwise in good standing to change accrediting agencies or associations without the approval of the Secretary as long as the institution notifies the Secretary of the change.”;
(7) by striking subsection (k) and inserting the following:
“(k) Religious institution rule.—
“(1) IN GENERAL.—Notwithstanding subsection (j), the Secretary shall allow an institution that has had its accreditation withdrawn, revoked, or otherwise terminated, or has voluntarily withdrawn from an accreditation agency, to remain certified as an institution of higher education under section 101 and subpart 3 of this part for a period sufficient to allow such institution to obtain alternative accreditation, if the Secretary determines that the withdrawal, revocation, or termination—
“(2) REQUIREMENTS.—For purposes of this section the following shall apply:
“(A) The religious mission of an institution may be reflected in the institution’s religious tenets, beliefs, or teachings, and any policies or decisions related to such tenets, beliefs, or teachings (including any policies or decisions concerning housing, employment, curriculum, self-governance, or student admission, continuing enrollment, or graduation).
“(3) ADMINISTRATIVE COMPLAINT FOR FAILURE TO RESPECT RELIGIOUS MISSION.—
“(A) IN GENERAL.—
“(i) INSTITUTION.—If an institution of higher education believes that an adverse action of an accrediting agency or association fails to respect the institution’s religious mission in violation of subsection (a)(4)(A), the institution—
“(I) may file a complaint with the Secretary to require the agency or association to withdraw the adverse action; and
“(ii) ACCREDITING AGENCY OR ASSOCIATION.—Upon notification of an intent to file a complaint and through the duration of the complaint process under this paragraph, the Secretary and the accrediting agency or association shall treat the accreditation status of the institution of higher education as if the adverse action for which the institution is filing the complaint had not been taken.
“(B) COMPLAINT.—Not later than 45 days after providing notice of the intent to file a complaint, the institution shall file the complaint with the Secretary (and provide a copy to the accrediting agency or association), which shall include—
“(C) RESPONSE.—
“(i) IN GENERAL.—The accrediting agency or association shall have 30 days from the date the complaint is filed with the Secretary to file with the Secretary (and provide a copy to the institution) a response to the complaint, which response shall include—
“(ii) BURDEN OF PROOF.—
“(I) IN GENERAL.—The accrediting agency or association shall bear the burden of proving that the agency or association has not taken the adverse action as a result of the institution’s religious mission, and that the action does not fail to respect the institution’s religious mission in violation of subsection (a)(4)(A), by showing that the adverse action does not impact the aspect of the religious claimed to be affected in the complaint.
“(D) ADDITIONAL INSTITUTION RESPONSE.—The institution shall have 15 days from the date on which the agency or association’s response is filed with the Secretary to—
“(E) SECRETARIAL ACTION.—
“(i) IN GENERAL.—Not later than 15 days of receipt of the institution’s response under subparagraph (D) or notification that the institution elects not to file a response under such subparagraph—
“(I) the Secretary shall review the materials to determine if the accrediting agency or association has met its burden of proof under subparagraph (C)(ii)(I); or
“(ii) REVIEW OF COMPLAINT.—In reviewing the complaint under clause (i)(I)—
“(I) the Secretary shall consider the institution to be correct in the assertion that the adverse action fails to respect the institution’s religious mission and shall apply the burden of proof described in subparagraph (C)(ii)(I) with respect to the accrediting agency or association; and
“(II) if the Secretary determines that the accrediting agency or association fails to meet such burden of proof—
“(F) RULE OF CONSTRUCTION.—Nothing in this paragraph shall prohibit—
“(i) an accrediting agency or association from taking an adverse action against an institution of higher education for a failure to comply with the agency or association’s standards of accreditation as long as such standards are in compliance with subsection (a)(4)(A) and any other applicable requirements of this section; or
“(G) GUIDANCE.—
“(i) IN GENERAL.—The Secretary may only issue guidance under this paragraph that explains or clarifies the process for providing notice of an intent to file a complaint or for filing a complaint under this paragraph.
“(ii) CLARIFICATION.—The Secretary may not issue guidance, or otherwise determine or suggest, when discussions to remedy the failure by an accrediting agency or association to respect the religious mission of an institution of higher education referred to in subparagraph (A)(i)(II)(bb) have failed or will fail.”;
(8) in subsection (n)(3), by striking “distance education courses or programs” each place it appears and inserting “competency-based education programs” ;
(9) in subsection (o), by inserting before the period at the end the following: “, or with respect to the policies and procedures of an accreditation agency or association described in paragraph (2) or (5) of subsection (c) or how the agency or association carries out such policies and procedures”;
(11) by adding at the end the following:
“(p) Risk-based or differentiated review processes or procedures.—
“(1) IN GENERAL.—Notwithstanding any other provision of law (including subsection (a)(4)(A)), an accrediting agency or association may establish, with the involvement of its membership, risk-based or differentiated review processes or procedures for assessing compliance with the accrediting agency or association’s standards, including policies related to substantive change and award of accreditation statuses, for institutions of higher education or programs that have demonstrated exceptional past performance with respect to meeting the accrediting agency or association’s standards.
“(q) Waiver.—The Secretary shall establish a process through which an agency or association may seek to have a requirement of this subpart waived, if such agency or association—
(a) Eligibility and certification procedures.—Section 498 (20 U.S.C. 1099c) is amended—
(3) in subsection (c)—
(B) by striking the subsection designation and all that follows through the end of paragraph (3) and inserting the following:
“(c) Financial responsibility standards.— (1) The Secretary shall determine whether an institution has the financial responsibility required by this title in accordance with paragraph (2).
“(2) An institution shall be determined to be financially responsible by the Secretary, as required by this title, if the institution is able to provide the services described in its official publications and statements, is able to provide the administrative resources necessary to comply with the requirements of this title, and meets one of the following conditions:
“(A) Such institution has its liabilities backed by the full faith and credit of a State, or its equivalent.
“(B) Such institution has a bond credit quality rating of investment grade or higher from a recognized credit rating agency.
“(C) Such institution has expendable net assets equal to not less than one-half of the annual potential liabilities of such institution to the Secretary for funds under this title, including loan obligations discharged pursuant to section 437, and to students for refunds of institutional charges, including funds under this title, as calculated by an independent certified public accountant in accordance with generally accepted auditing standards.
“(D) Such institution establishes, with the support of a financial statement audited by an independent certified public accountant in accordance with generally accepted auditing standards, that the institution has sufficient resources to ensure against the precipitous closure of the institution, including the ability to meet all of its financial obligations (including refunds of institutional charges and repayments to the Secretary for liabilities and debts incurred in programs administered by the Secretary).
“(3) The criteria prescribed pursuant to paragraph (2)(E) shall provide that the Secretary shall—
“(A) not later than 6 months after an institution that is subject to the requirements of paragraph (2)(E) has submitted its annual financial statement, provide to such institution a notification of its preliminary score under such paragraph;
“(B) provide to each such institution a description of the method used, and complete copies of all the calculations performed, to determine the institution’s score, if such institution makes a request for such information within 45 days after receiving the notice under subparagraph (A);
“(C) within 60 days of receipt by an institution of the information described in subparagraph (B)—
“(i) allow the institution to correct or cure an administrative, accounting, or recordkeeping error if the error is not part of a pattern of errors and there is no evidence of fraud or misconduct related to the error;
“(4) If the Secretary determines, after conducting an initial review, that the institution has not met at least one of the conditions described in subparagraphs (A) through (E) of paragraph (2) but has otherwise met the requirements of such paragraph—
“(A) the Secretary shall request information relating to such conditions for any affiliated or parent organization, company, or foundation owning or owned by the institution; and
“(B) if such additional information demonstrates that an affiliated or parent organization, company, or foundation owning or owned by the institution meets at least one of the conditions describe in subparagraphs (A) through (E) of paragraph (2), the institution shall be determined to be financially responsible as required by this title.
“(5) The Secretary shall establish policies and procedures to address an institution’s failure to meet the criteria of paragraph (2) which shall include policies and procedures that—
“(A) require an institution that fails to meet the criteria for three consecutive years to provide to the Secretary a financial plan;
“(C) allow an institution to submit to the Secretary third-party financial guarantees that the Secretary determines are reasonable, such as performance bonds or letters of credit payable to the Secretary, except that an institution may not be required to obtain a letter of credit in order to be deemed financially responsible unless—
“(i) the institution has been deemed not to be a going concern, as determined by an independent certified public accountant in accordance with generally accepted auditing standards;
(6) in subsection (i)(1), by striking “section 102 (other than the requirements in subsections (b)(5) and (c)(3))” and inserting “sections 101 (other than the requirements in subsections (b)(1)(A) and (b)(2)) and 102”;
(7) in subsection (j)(1), by striking “meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C)” and inserting “meet the requirements to be considered an institution of higher education under sections 101(b)(1)(A) and 101(b)(2)”; and
(b) Program Review and Data.—Section 498A (20 U.S.C. 1099c–1) is amended—
(1) in subsection (a)(2)—
(B) in subparagraph (A), by inserting before the semicolon at the end the following: “, or after the transition period described in section 481B(e)(3), institutions in which 25 percent or more of the educational programs have a loan repayment rate (defined in section 481B(c)) for the most recent fiscal year of less than 50 percent”;
(3) by adding at the end the following new subsection:
“(f) Time limit on program review activities.—In conducting, responding to, and concluding program review activities, the Secretary shall—
“(1) provide to the institution the initial report finding not later than 90 days after concluding an initial site visit;
“(2) upon each receipt of an institution’s response during a program review inquiry, respond in a substantive manner within 90 days;
“(3) upon each receipt of an institution’s written response to a draft final program review report, provide the final program review report and accompanying enforcement actions, if any, within 90 days; and
“(4) conclude the entire program review process not later than 2 years after the initiation of a program review, unless the Secretary determines that such a review is sufficiently complex and cannot reasonably be concluded before the expiration of such 2-year period, in which case the Secretary shall promptly notify the institution of the reasons for such delay and provide an anticipated date for conclusion of the review.”.
(c) Review of regulations.—Section 498B(b) (20 U.S.C. 1099c–2(b)) is amended by striking “section 102(a)(1)(C)” and inserting “section 102(a)(1)”.
Part A of title V (20 U.S.C. 1101 et seq.) is amended—
(1) in section 502(a)—
(A) in paragraph (1), by striking “institution for instruction” and inserting “institution of higher education for instruction”;
(B) in paragraph (2)(A)—
(C) in paragraph (2)—
(ii) by inserting after subparagraph (B) the following:
(2) in section 503—
(A) in subsection (b)—
(ii) in paragraph (7), by striking “funds management” and inserting “funds and administrative management”;
(iii) in paragraph (11), by striking “Creating” and all that follows through “technologies,” and inserting “Innovative learning models and creating or improving facilities for Internet or other innovative technologies,”; and
(iv) by redesignating paragraph (16) as paragraph (20) and inserting after paragraph (15) the following:
“(16) The development, coordination, implementation, or improvement of career and technical education programs (as defined in section 135 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2355)).
“(17) Alignment and integration of career and technical education programs with programs of study leading to a bachelor’s degree, graduate degree, or professional degree.
(B) in subsection (c), by adding at the end the following:
“(4) SCHOLARSHIP.—An institution that uses grant funds provided under this part to establish or increase an endowment fund may use the income from such endowment fund to provide scholarships to students for the purposes of attending such institution, subject to the limitation in section 331(c)(3)(B)(i).”;
(3) in section 504, by striking subsection (a) and inserting the following:
“(a) Award period.—The Secretary may award a grant to a Hispanic-serving institution under this part for a period of 5 years. Any funds awarded under this part that are not expended or used, before the date that is 10 years after the date on which the grant was awarded, for the purposes for which the funds were paid shall be repaid to the Treasury.”; and
Part B of title V (20 U.S.C. 1102 et seq.) is amended—
(2) in section 514—
(A) by striking subsection (b) and inserting the following:
“(b) Duration.—The Secretary may award a grant to a Hispanic-serving institution under this part for a period of 5 years. Any funds awarded under this part that are not expended or used for the purposes for which the funds were paid within 10 years following the date on which the grant was awarded shall be repaid to the Treasury.”; and
Part C of title V (20 U.S.C. 1103 et seq.) is amended—
(2) in section 522(b)—
(a) Graduate and undergraduate language and area centers and programs.—Section 602 (20 U.S.C. 1122) is amended—
(2) in subsection (e)—
(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and realigning such subparagraphs so as to be indented 4 ems from the left margin;
(C) by adding at the end the following new paragraph:
“(2) APPROVAL.—The Secretary may approve an application for a grant if an institution, in its application, provides adequate assurances that it will comply with paragraph (1)(A). The Secretary shall use the requirement of paragraph (1)(A) as part of the application evaluation, review, and approval process when determining grant recipients for initial funding and continuation awards.”.
(b) Discontinuation of certain programs.—Part A of title VI (20 U.S.C. 1121 et seq.) is amended—
(c) Conforming amendment.—Part A of title VI (20 U.S.C. 1121 et seq.) is further amended by redesignating sections 605, 607, and 608 as sections 604, 605, and 606, respectively.
(a) Centers for International Business Education.—Section 612 (20 U.S.C. 1130–1) is amended—
(1) in subsection (f)(3), by inserting “and a wide range of views” after “diverse perspectives”; and
(2) by adding at the end the following new subsection:
“(g) Approval.—The Secretary may approve an application for a grant if an institution, in its application, provides adequate assurances that it will comply with subsection (f)(3). The Secretary shall use the requirement of subsection (f)(3) as part of the application evaluation, review, and approval process when determining grant recipients for initial funding and continuation awards.”.
(b) Discontinuation of certain programs.—Part B of title VI (20 U.S.C. 1130 et seq.) is amended by striking sections 613 and 614.
Part C of title VI (20 U.S.C. 1131 et seq.) is repealed.
(a) Definitions.—Section 631(a) (20 U.S.C. 1132(a)) is amended—
(b) Special rule.—Section 632(2) (20 U.S.C. 1132–1(2)) is amended by inserting “substantial” before “need”.
(c) Reports.—Section 636 (20 U.S.C. 1132–5) is amended—
(2) by adding at the end the following new subsection:
“(b) Annual report on compliance with diverse perspectives and a wide range of views requirement.—Not later than 180 days after the date of the enactment of this subsection, and annually thereafter, the Secretary shall submit to the authorizing committees a report that identifies the efforts taken to ensure recipients’ compliance with the requirements under this title relating to the ‘diverse perspectives and a wide range of views’ requirement, including any technical assistance the Department has provided, any regulatory guidance the Department has issued, and any monitoring the Department has conducted. Such report shall be made available to the public.”.
(d) Repeal of science and technology advanced foreign language education grant program.—Section 637 (20 U.S.C. 1132–6) is repealed.
(e) Reporting by institutions.—Section 638(b) (20 U.S.C. 1132–7(b)) is amended to read as follows:
“(b) Data required.—
“(1) IN GENERAL.—Except as provided in paragraph (5), the Secretary shall require an institution of higher education referred to in subsection (a) to file a disclosure report under paragraph (2) with the Secretary on January 31 or July 31, whichever is sooner, with respect to the date on which such institution received a contribution—
“(2) CONTENTS OF REPORT.—Each report to the Secretary required by this section shall contain the following information with respect to the institution of higher education filing the report:
“(A) For gifts received from, or contracts entered into with a foreign source other than a foreign government, the following information:
“(B) For gifts received from, or contracts entered into with, a foreign government, the aggregate dollar amount of such gifts and contracts received from each foreign government and the legal name of the entity providing any such gift or contract.
“(3) ADDITIONAL DISCLOSURES FOR RESTRICTED AND CONDITIONAL GIFTS.—Notwithstanding paragraph (1), when an institution of higher education receives a restricted or conditional gift or contract from a foreign source, the institution shall disclose the following:
“(4) ATTRIBUTION OF GIFTS.—For purposes of this subsection, the country to which a gift is attributable is—
“(5) RELATION TO OTHER REPORTING REQUIREMENTS.—
“(A) STATE REQUIREMENTS.—If an institution described under subsection (a) is located within a State that has enacted requirements for public disclosure of gifts from, or contracts with, a foreign source that are substantially similar to the requirements of this section, as determined by the Secretary, a copy of the disclosure report filed with the State may be filed with the Secretary in lieu of a report required under paragraph (1).
“(B) ASSURANCES.—With respect to an institution that submits a copy of a disclosure report pursuant to subparagraph (A), the State in which such institution is located shall provide to the Secretary such assurances as the Secretary may require to establish that the institution has met the requirements for public disclosure under the laws of such State.
“(C) USE OF OTHER FEDERAL REPORTS.—If an institution receives a gift from, or enters into a contract with, a foreign source, where any other Federal law or regulation requires a report containing requirements substantially similar to the requirements under this section, as determined by the Secretary, a copy of the report may be filed with the Secretary in lieu of a report required under subsection (b).
“(7) ENFORCEMENT.—
“(A) COMPEL COMPLIANCE.—Whenever it appears that an institution has failed to comply with the requirements of this section, including any rule or regulation promulgated under this section, a civil action may be brought by the Attorney General, at the request of the Secretary, in an appropriate district court of the United States, or the appropriate United States court of any territory or other place subject to the jurisdiction of the United States, to request such court to compel compliance with the requirements of this section.
“(B) COSTS.—For knowing or willful failure to comply with the requirements of this section, including any rule or regulation promulgated thereunder, an institution shall pay to the Treasury of the United States the full costs to the United States of obtaining compliance, including all associated costs of investigation and enforcement.
“(8) DEFINITIONS.—In this section:
“(A) CONTRACT.—The term ‘contract’ means any agreement for the acquisition by purchase, lease, gift, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties.
“(B) FOREIGN SOURCE.—The term ‘foreign source’ means—
“(ii) a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states;
“(C) GIFT.—The term ‘gift’ means any gift of money, property, human resources, or payment of any staff.
“(D) RESTRICTED OR CONDITIONAL.—The term ‘restricted or conditional’, with respect to an endowment, gift, grant, contract, award, present, or property of any kind means including as a condition on such endowment, gift, grant, contract, award, present, or property provisions regarding—
(f) Redesignations.—Part D of title VI (20 U.S.C. 1132 et seq.) is amended—
(g) Continuation awards.—Part C of title VI (20 U.S.C. 1131 et seq.), as so redesignated by subsection (f)(1) of this section, is amended by adding at the end the following new sections:
“SEC. 628. Continuation awards.
“The Secretary shall make continuation awards under this title for the second and succeeding years of a grant only after determining that the recipient is making satisfactory progress in carrying out the stated grant objectives approved by the Secretary.
“SEC. 629. Compliance with diverse perspective and a wide range of views.
“When complying with the requirement of this title to offer a diverse perspective and a wide range of views, a recipient of a grant under this title shall not promote any biased views that are discriminatory toward any group, religion, or population of people.
(a) Repeal of Jacob K. Javits Fellowship Program.—Subpart 1 of part A of title VII (20 U.S.C. 1134 et seq.) is repealed.
(b) Repeal of Thurgood Marshall Legal Educational Opportunity program.—Subpart 3 of part A of title VII (20 U.S.C. 1136) is repealed.
(c) Authorization of appropriations for graduate assistance in areas of national need.—Section 716 (20 U.S.C. 1135e) is amended striking “$35,000,000” and all that follows through the period at the end and inserting “$28,047,000 for each of fiscal years 2019 through 2024.”.
(d) Redesignations.—Part A of title VII (20 U.S.C. 1134 et seq.) is amended—
(e) Amendment of cross references.—Part A of title VII (20 U.S.C. 1134 et seq.) is amended—
(1) in section 703(b)(8), as so redesignated, by striking “section 715” and inserting “section 705”;
(5) in section 713, as so redesignated—
Part B of title VII (20 U.S.C. 1138 et seq.) is repealed.
(a) Redesignations.—
(1) SUBPART.—Part D of title VII (20 U.S.C. 1140 et seq.) is amended by striking subparts 1 and 3 and redesignating subparts 2 and 4 as subparts 1 and 2, respectively.
(2) PART.—Part D of title VII (20 U.S.C. 1140 et seq.), as amended by paragraph (1), is redesignated as part B of such Act.
(3) DEFINITIONS.—Section 760 (20 U.S.C. 1140) is redesignated as section 730 of such Act.
(b) Model transition programs; coordinating center.—
(1) PURPOSE.—Section 766 (20 U.S.C. 1140f) is redesignated as section 731 of such Act.
(2) MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY PROGRAMS.—Section 767 (20 U.S.C. 1140g) is amended—
(C) by striking subsection (b) and inserting the following:
“(b) Application.—An eligible applicant desiring a grant under this section shall submit to the Secretary, at such time and in such manner as the Secretary may require, an application that—
“(1) describes how the model program to be operated by the eligible applicant with grant funds received under this section will meet the requirements of subsection (d);
“(2) describes how the model program proposed to be operated is based on the demonstrated needs of students with intellectual disabilities served by the eligible applicant and potential employers;
“(3) describes how the model program proposed to be operated will coordinate with other Federal, State, and local programs serving students with intellectual disabilities, including programs funded under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
“(4) describes how the model program will be sustained once the grant received under this section ends;
(D) in subsection (c)(3)—
(E) in subsection (d)—
(i) in the matter preceding paragraph (1), by striking “An institution of higher education (or consortium)” and inserting “An eligible applicant”;
(F) in subsection (e), by striking “An institution of higher education (or consortium)” and inserting “An eligible applicant”;
(3) REDESIGNATIONS.—Sections 768 and 769 (20 U.S.C. 1140i) are redesignated as sections 733 and 736, respectively.
(4) COORDINATING CENTER AND COMMISSION.—Subpart 1 of part D of title VII, as so redesignated by subsection (a)(1), is amended by inserting after section 733 (as so redesignated by paragraph (3)) the following:
“SEC. 734. Coordinating center.
“(a) Purpose.—It is the purpose of this section to provide technical assistance and information on best and promising practices to eligible applicants awarded grants under section 732.
“(b) Coordinating center.—
“(1) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term ‘eligible entity’ means an entity, or a partnership of entities, that has demonstrated expertise in the fields of—
“(2) IN GENERAL.—From amounts appropriated under section 736, the Secretary shall enter into a cooperative agreement, on a competitive basis, with an eligible entity for the purpose of establishing a coordinating center for institutions of higher education that offer inclusive comprehensive transition and postsecondary programs for students with intellectual disabilities, including eligible applicants receiving grants under section 732, to provide—
“(3) ADMINISTRATION.—The program under this section shall be administered by the office in the Department that administers other postsecondary education programs.
“(4) DURATION.—A cooperative agreement entered into pursuant to this section shall have a term of 5 years.
“(5) REQUIREMENTS OF COOPERATIVE AGREEMENT.—The cooperative agreement entered into pursuant to this section shall provide that the eligible entity entering into such agreement shall establish and maintain a coordinating center that shall—
“(A) serve as the technical assistance entity for all comprehensive transition and postsecondary programs for students with intellectual disabilities;
“(B) provide technical assistance regarding the development, evaluation, and continuous improvement of such programs;
“(C) develop an evaluation protocol for such programs that includes qualitative and quantitative methodologies for measuring student outcomes and program strengths in the areas of academic enrichment, socialization, independent living, and competitive or supported employment;
“(D) assist recipients of grants under section 732 in efforts to award a meaningful credential to students with intellectual disabilities upon the completion of such programs, which credential shall take into consideration unique State factors;
“(F) analyze possible funding sources for such programs and provide recommendations to such programs regarding potential funding sources;
“(G) develop model memoranda of agreement for use between or among institutions of higher education and State and local agencies providing funding for such programs;
“(H) develop mechanisms for regular communication, outreach, and dissemination of information about comprehensive transition and postsecondary programs for students with intellectual disabilities under section 732 between or among such programs and to families and prospective students;
“(I) host a meeting of all recipients of grants under section 732 not less often than once every 3 years; and
“(J) convene a workgroup to develop and recommend model criteria, standards, and components of such programs as described in subparagraph (E) that are appropriate for the development of accreditation standards, which workgroup shall include—
“(iii) a representative of a disability organization that represents students with intellectual disabilities;
“SEC. 735. Accessible instructional materials in higher education.
“(a) Commission structure.—
“(1) ESTABLISHMENT OF COMMISSION.—
“(A) IN GENERAL.—The Speaker of the House of Representatives, the President pro tempore of the Senate, and the Secretary of Education shall establish an independent commission, comprised of key stakeholders, to develop voluntary guidelines for accessible postsecondary electronic instructional materials and related technologies in order—
“(i) to ensure students with disabilities are afforded the same educational benefits provided to nondisabled students through the use of electronic instructional materials and related technologies;
“(ii) to inform better the selection and use of such materials and technologies at institutions of higher education; and
“(iii) to encourage entities that produce such materials and technologies to make accessible versions more readily available in the market.
In fulfilling this duty, the commission shall review applicable national and international information technology accessibility standards, which it will compile and annotate as an additional information resource for institutions of higher education and companies that service the higher education market.
“(B) MEMBERSHIP.—
“(i) STAKEHOLDER GROUPS.—The commission shall be composed of representatives from the following categories:
“(I) DISABILITY.—Communities of persons with disabilities for whom the accessibility of postsecondary electronic instructional materials and related technologies is a significant factor in ensuring equal participation in higher education, and nonprofit organizations that provide accessible electronic materials to these communities.
“(ii) APPOINTMENT OF MEMBERS.—The commission members shall be appointed as follows:
“(I) Six members, 2 from each category described in clause (i), shall be appointed by the Speaker of the House of Representatives, 3 of whom shall be appointed on the recommendation of the majority leader of the House of Representatives and 3 of whom shall be appointed on the recommendation of the minority leader of the House of Representatives, with the Speaker ensuring that 1 developer of postsecondary electronic instructional materials and 1 manufacturer of related technologies are appointed. The Speaker shall also appoint 2 additional members, 1 student with a disability and 1 faculty member from an institution of higher education.
“(II) Six members, 2 from each category described in clause (i), shall be appointed by the President pro tempore of the Senate, 3 of whom shall be appointed on the recommendation of the majority leader of the Senate and 3 of whom shall be appointed on the recommendation of the minority leader of the Senate, with the President pro tempore ensuring that 1 developer of postsecondary electronic instructional materials and 1 manufacturer of related technologies are appointed. The President pro tempore shall also appoint 2 additional members, 1 student with a disability and 1 faculty member from an institution of higher education.
“(III) Three members, each of whom must possess extensive, demonstrated technical expertise in the development and implementation of accessible postsecondary electronic instructional materials, shall be appointed by the Secretary of Education. One of these members shall represent postsecondary students with disabilities, 1 shall represent higher education leadership, and 1 shall represent developers of postsecondary electronic instructional materials.
“(iii) ELIGIBILITY TO SERVE ON THE COMMISSION.—Federal employees are ineligible for appointment to the commission. An appointee to a volunteer or advisory position with a Federal agency or related advisory body may be appointed to the commission so long as his or her primary employment is with a non-Federal entity and he or she is not otherwise engaged in financially compensated work on behalf of the Federal Government, exclusive of any standard expense reimbursement or grant-funded activities.
“(2) AUTHORITY AND ADMINISTRATION.—
“(A) AUTHORITY.—The commission’s execution of its duties shall be independent of the Secretary of Education, the Attorney General, and the head of any other agency or department of the Federal Government with regulatory or standard setting authority in the areas addressed by the commission.
“(b) Duties of the commission.—
“(1) PRODUCE VOLUNTARY GUIDELINES.—Not later than 18 months after the date of enactment of the PROSPER Act, subject to a 6-month extension that it may exercise at its discretion, the commission established in subsection (a) shall—
“(A) develop and issue voluntary guidelines for accessible postsecondary electronic instructional materials and related technologies; and
“(B) in developing the voluntary guidelines, the commission shall—
“(i) establish a technical panel pursuant to paragraph (4) to support the commission in developing the voluntary guidelines;
“(ii) develop criteria for determining which materials and technologies constitute ‘postsecondary electronic instructional materials’ and ‘related technologies’ as defined in subparagraphs (D) and (E) of subsection (f);
“(iii) identify existing national and international accessibility standards that are relevant to student use of postsecondary electronic instructional materials and related technologies at institutions of higher education;
“(iv) identify and address any unique pedagogical and accessibility requirements of postsecondary electronic instructional materials and related technologies that are not addressed, or not adequately addressed, by the identified, relevant existing accessibility standards;
“(v) identify those aspects of accessibility, and types of postsecondary instructional materials and related technologies, for which the commission cannot produce guidelines or which cannot be addressed by existing accessibility standards due to—
“(vi) ensure that the voluntary guidelines are consistent with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.);
“(vii) ensure that the voluntary guidelines are consistent, to the extent feasible and appropriate, with the technical and functional performance criteria included in the national and international accessibility standards identified by the commission as relevant to student use of postsecondary electronic instructional materials and related technologies;
“(viii) allow for the use of an alternative design or technology that results in substantially equivalent or greater accessibility and usability by individuals with disabilities than would be provided by compliance with the voluntary guidelines; and
“(ix) provide that where electronic instructional materials or related technologies that comply fully with the voluntary guidelines are not commercially available, or where such compliance is not technically feasible, the institution may select the product that best meets the voluntary guidelines consistent with the institution’s business and pedagogical needs.
“(2) PRODUCE ANNOTATED LIST OF INFORMATION TECHNOLOGY STANDARDS.—Not later than 18 months after the date of the enactment of the PROSPER Act, subject to a 6-month extension that it may exercise at its discretion, the commission established in subsection (a) shall, with the assistance of the technical panel established under paragraph (4), develop and issue an annotated list of information technology standards.
“(3) SUPERMAJORITY APPROVAL.—Issuance of the voluntary guidelines and annotated list of information technology standards shall require approval of at least 75 percent (at least 15) of the 19 members of the commission.
“(4) ESTABLISHMENT OF TECHNICAL PANEL.—Not later than 1 month after the Commission’s first meeting, it shall appoint and convene a panel of 12 technical experts, each of whom shall have extensive, demonstrated technical experience in developing, researching, or implementing accessible postsecondary electronic instructional materials or related technologies. The commission has discretion to determine a process for nominating, vetting, and confirming a panel of experts that fairly represents the stakeholder communities on the commission. The technical panel shall include a representative from the United States Access Board.
“(c) Periodic review and revision of voluntary guidelines.—Not later than 5 years after issuance of the voluntary guidelines and annotated list of information technology standards described in paragraphs (1) and (2) of section (b), and every 5 years thereafter, the Secretary of Education shall publish a notice in the Federal Register requesting public comment about whether there is a need to reconstitute the commission to update the voluntary guidelines and annotated list of information technology standards to reflect technological advances, changes in postsecondary electronic instructional materials and related technologies, or updated national and international accessibility standards. The Secretary shall submit a report to Congress summarizing the public comments and presenting the Secretary’s decision on whether to reconstitute the commission based on those comments. If the Secretary decides to reconstitute the commission, the Secretary may implement that decision 30 days after the date on which the report was submitted to Congress. That process shall begin with the Secretary requesting the appointment of commission members as detailed in subsection (a)(1)(B)(ii). If the Secretary reconstitutes the Commission, the Commission shall terminate on the day after the date on which the Commission issues updated voluntary guidelines and annotated list of information technology standards, or two years from the date on which the Secretary reconstitutes the Commission, whichever comes first.
“(d) Safe harbor protections.—The following defenses from liability may be asserted with respect to claims regarding the use of postsecondary instructional materials and related technologies arising under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et seq. and 12181 et seq.), subject to the judicial review afforded under those Acts and without limiting any other defenses provided under those Acts:
“(1) SAFE HARBOR FOR CONFORMING POSTSECONDARY ELECTRONIC INSTRUCTIONAL MATERIALS AND RELATED TECHNOLOGIES.—An institution of higher education that requires, provides, or both recommends and provides, postsecondary electronic instructional materials or related technologies that conform to the voluntary guidelines shall be deemed in compliance with, and qualify for a safe harbor from liability in relation to, its obligations under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) with respect to its selection of such materials or technologies.
“(2) LIMITED SAFE HARBOR FOR NONCONFORMING POSTSECONDARY ELECTRONIC INSTRUCTIONAL MATERIALS OR RELATED TECHNOLOGIES.—An institution of higher education that requires, provides, or both recommends and provides, postsecondary electronic instructional materials or related technologies that do not fully conform with the voluntary guidelines, but which institution otherwise complies with all requirements set forth in subparagraphs (A), (B), and (C), will qualify for a limited safe harbor from monetary damages under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.), with available remedies under section 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794a), section 103 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12133), and section 308 of such Act (42 U.S.C. 12188) limited to declaratory and injunctive relief, and for a prevailing party other than the United States, a reasonable attorney’s fee, if the institution—
“(A) documented its efforts to incorporate and use the voluntary guidelines in its policies and practices regarding its selection or procurement of postsecondary electronic instructional materials and related technologies. These efforts may include establishment of a written policy regarding the institution’s use of the voluntary guidelines, identifying the official(s) authorized to approve the selection of nonconforming postsecondary electronic instructional materials or related technologies, and procedures used by the official(s) when making such authorizations;
“(B) documented instances where nonconforming postsecondary electronic instructional materials or related technologies are selected or procured, including an explanation of—
“(iv) what auxiliary aid or service, reasonable modification, or other method the institution will utilize to ensure that affected students within categories of disability are afforded the rights to which they are entitled under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.), including an equally effective opportunity to receive the same educational benefit as afforded to nondisabled students; and
“(v) where a student or students with disabilities are affected by nonconforming instructional materials or related technologies, what auxiliary aid or service, reasonable modification, or other method the institution is using to ensure the student or students are afforded the rights described in clause (iv); and
“(e) Construction.—
“(1) NONCONFORMING POSTSECONDARY ELECTRONIC INSTRUCTIONAL MATERIALS OR RELATED TECHNOLOGIES.—Nothing in this section shall be construed to require an institution of higher education to require, provide, or both recommend and provide, postsecondary electronic instructional materials or related technologies that conform to the voluntary guidelines. However, an institution that selects or uses nonconforming postsecondary electronic instructional materials or related technologies must otherwise comply with existing obligations under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) to provide access to the educational benefit afforded by such materials and technologies through provision of appropriate and reasonable modification, accommodation, and auxiliary aids or services.
“(2) RELATIONSHIP TO EXISTING LAWS AND REGULATIONS.—With respect to the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), except as provided in subsection (d), nothing in this section may be construed—
“(A) to authorize or require conduct prohibited under the Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1973, including the regulations issued pursuant to those laws;
“(B) to expand, limit, or alter the remedies or defenses under the Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1973;
“(3) VOLUNTARY NATURE OF THE PRODUCTS OF THE COMMISSION.—
“(A) VOLUNTARY GUIDELINES.—It is the intent of the Congress that use of the voluntary guidelines developed pursuant to this section is and should remain voluntary. The voluntary guidelines shall not confer any rights or impose any obligations on commission participants, institutions of higher education, or other persons, except for the legal protections set forth in subsection (d). Thus, no department or agency of the Federal Government may incorporate the voluntary guidelines, whether produced as a discrete document or electronic resource, into regulations promulgated under the Rehabilitation Act, the Americans with Disabilities Act, or any other Federal law or instrument. This restriction applies only to the voluntary guidelines as a discrete document or resource; it imposes no limitation on Federal use of standards or resources to which the voluntary guidelines may refer.
“(B) ANNOTATED LIST.—It is the intent of Congress that use of the annotated list of information technology standards developed pursuant to this section is and should remain voluntary. The Annotated List shall not confer any rights or impose any obligations on Commission participants, institutions of higher education, or other persons. Thus, no department or agency of the Federal Government may incorporate the Annotated List, whether produced as a discrete document or electronic resource into regulations promulgated under the Rehabilitation Act, the Americans with Disabilities Act, or any other Federal law or instrument. This provision applies only to the Annotated List as a discrete document or resource; it imposes no limitation on Federal use of standards or resources to which the Annotated List may refer.
“(f) Definitions.—In this section, the following definitions apply:
“(1) ANNOTATED LIST OF INFORMATION TECHNOLOGY STANDARDS.—The term ‘annotated list of information technology standards’ means a list of existing national and international accessibility standards relevant to student use of postsecondary electronic instructional materials and related technologies, and to other types of information technology common to institutions of higher education (such as institutional websites and class registration systems), annotated by the commission established pursuant to subsection (a) to provide information about the applicability of such standards in higher education settings. The annotated list of information technology standards is intended to serve solely as a reference tool to inform any consideration of the relevance of such standards in higher education contexts.
“(2) DISABILITY.—The term ‘disability’ has the meaning given such term in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102).
“(3) NONCONFORMING POSTSECONDARY ELECTRONIC INSTRUCTIONAL MATERIALS OR RELATED TECHNOLOGIES.—The term ‘nonconforming materials or related technologies’ means postsecondary electronic instructional materials or related technologies that do not conform to the voluntary guidelines to be developed pursuant to this subpart.
“(4) POSTSECONDARY ELECTRONIC INSTRUCTIONAL MATERIALS.—The term ‘postsecondary electronic instructional materials’ means digital curricular content that is required, provided, or both recommended and provided by an institution of higher education for use in a postsecondary instructional program.
“(5) RELATED TECHNOLOGIES.—The term ‘related technologies’ refers to any software, applications, learning management or content management systems, and hardware that an institution of higher education requires, provides, or both recommends and provides for student access to and use of postsecondary electronic instructional materials in a postsecondary instructional program.
“(6) TECHNICAL PANEL.—The term ‘technical panel’ means a group of experts with extensive, demonstrated technical experience in the development and implementation of accessibility features for postsecondary electronic instructional materials and related technologies, established by the Commission pursuant to subsection (b)(4), which will assist the commission in the development of the voluntary guidelines and annotated list of information technology standards authorized under this subpart.
“(7) VOLUNTARY GUIDELINES.—The term ‘voluntary guidelines’ means a set of technical and functional performance criteria to be developed by the commission established pursuant to subsection (a) that provide specific guidance regarding both the accessibility and pedagogical functionality of postsecondary electronic instructional materials and related technologies not addressed, or not adequately addressed, by existing accessibility standards.”.
(5) AUTHORIZATION OF APPROPRIATIONS.—Section 736, as so redesignated by paragraph (3), is amended—
(A) in subsection (a), by striking “such sums as may be necessary for fiscal year 2009” and inserting “$11,800,000 for fiscal year 2019”; and
(B) by striking subsection (b) and inserting the following:
“(b) Reservation of funds.—For any fiscal year for which appropriations are made for this subpart, the Secretary—
(c) National technical assistance center.—
(1) SUBPART HEADING.—The subpart heading for subpart 2 of part B of title VII (20 U.S.C. 1140p et seq.), as redesignated by subsection (a), is amended by striking “; Coordinating center”.
(2) PURPOSE.—Section 776 (20 U.S.C. 1140p) is amended—
(3) NATIONAL TECHNICAL ASSISTANCE.—Section 777 (20 U.S.C. 1140q) is amended—
(C) in subsection (a)(1), by striking “appropriated under section 778” and inserting “reserved under section 736(b)(2)”;
(4) AUTHORIZATION OF APPROPRIATIONS.—Section 778 (20 U.S.C. 1140r) is repealed.
Part E of title VII (20 U.S.C. 1141) is repealed.
(a) Higher Education Act of 1965.—Title VIII of the Higher Education Act of 1965 (20 U.S.C. 1161a et seq.) is repealed.
(b) Higher Education Opportunity Act.—The Higher Education Opportunity Act (Public Law 110–315; 122 Stat. 3078 et seq.) is amended by repealing sections 802 and 803.
(c) Higher Education Amendments of 1998.—The Higher Education Amendments of 1998 (Public Law 105–244; 112 Stat. 1581 et seq.) is amended by repealing parts D and H of title VIII.
(a) Board of trustees.—Section 103(a)(1) of the Education of the Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) is amended—
(1) in the matter preceding subparagraph (A), by striking “twenty-one” and inserting “twenty-three”;
(b) Laurent Clerc National Deaf Education Center.—Section 104(b)(5) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)(5)) is amended to read as follows:
“(5) The University, for purposes of the elementary and secondary education programs carried out by the Clerc Center, shall—
“(A) (i) (I) provide an assurance to the Secretary that it has adopted and is implementing challenging State academic standards that meet the requirements of section 1111(b)(1) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1));
“(II) demonstrate to the Secretary that the University is implementing a set of high-quality student academic assessments in mathematics, reading or language arts, and science, and any other subjects chosen by the University, that meet the requirements of section 1111(b)(2) of such Act (20 U.S.C. 6311(b)(2)); and
“(III) demonstrate to the Secretary that the University is implementing an accountability system consistent with section 1111(c) of such Act (20 U.S.C. 6311(c)); or
“(ii) (I) select the challenging State academic standards and State academic assessments of a State, adopted and implemented, as appropriate, pursuant to paragraphs (1) and (2) of section 1111(b) of such Act (20 U.S.C. 6311(b)); and
“(II) adopt the accountability system, consistent with section 1111(c) of such Act (20 U.S.C. 6311(c)), of such State; and
(c) Repeal of cultural experiences grants program.—Part C of title I of the Education of the Deaf Act of 1986 (20 U.S.C. 4341) is repealed.
(d) Repeal of authorization of appropriations for monitoring and evaluation.—Subsection (c) of section 205 of the Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is repealed.
(e) Federal endowment funds.—Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C. 4357) is amended—
(2) in subsection (b), by striking paragraphs (1) and (2) and inserting the following:
“(1) From amounts provided by the Secretary from funds appropriated under subsections (a) and (b) of section 212, respectively, the University and NTID may make payments, in accordance with this section, to the Federal endowment fund of the institution involved.
(4) in subsection (f), in the matter preceding paragraph (1), by striking “Federal payments” and inserting “payments”;
(f) Repeal of National Study.—Section 211 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360) is repealed.
(g) Authorization of appropriations.—Section 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended—
(h) Technical amendments.—The Education of the Deaf Act of 1986 is further amended—
(1) in section 112(b)(3) (20 U.S.C. 4332(b)(3)), by striking “Education and Labor” and inserting “Education and the Workforce”;
(2) in section 203 (20 U.S.C. 4353)—
(A) in the heading of subsection (a), by striking “General Accounting” and inserting “Government Accountability”;
(3) in section 204 (20 U.S.C. 4354), by striking “Education and Labor” and inserting “Education and the Workforce”;
(4) in section 208(a) (20 U.S.C. 4359(a)), by striking “Education and Labor” and inserting “Education and the Workforce”; and
(5) in section 210(b) (20 U.S.C. 4359b(b)), by striking “Education and Labor” and inserting “Education and the Workforce”.
(a) Definitions.—Section 2 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801) is amended—
(b) Authorization of appropriations.—The Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended by inserting after section 2 (25 U.S.C. 1801), the following:
(c) Repeal of Planning Grants.—Section 104 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1804a) is repealed.
(d) Grants to tribally controlled colleges and universities.—Section 107 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1807) is amended—
(e) Amount of grants.—Section 108(b)(1) of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1808(b)(1)) is amended—
(f) Authorization of appropriations.—Section 110(a) of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1810(a)) is amended—
(2) in paragraph (2), by striking “for fiscal year 2009” and all that follows through the period at the end and inserting “from the amount made available under section 3(a) for each fiscal year.”;
(g) Rules and regulations.—The Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended by striking section 115 (25 U.S.C. 1815).
(h) Repeal of endowment program.—
(1) REPEAL.—Title III of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1831 et seq.) is repealed.
(2) TRANSITION.—
(A) IN GENERAL.—Subject to subparagraph (B), title III of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1831 et seq.), as such title was in effect on the day before the date of the enactment of this Act, shall apply with respect to any endowment fund established or funded under such title before such date of enactment, except that the Secretary of the Interior may not make any grants or Federal capital contributions under such title after such date.
(B) TERMINATION.—Subparagraph (A) shall terminate on the date that is 20 years after the date of the enactment of this Act. On or after such date, a tribally controlled college or university may use the corpus (including the Federal and institutional capital contribution) of any endowment fund described in such subparagraph to pay any expenses relating to the operation or academic programs of such college or university.
(i) Tribal economic development; authorization of appropriations.—Section 403 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1852) is amended by striking “for fiscal year 2009” and all that follows through the period at the end and inserting “from the amount made available under section 3(a) for each fiscal year.” .
(j) Tribally controlled postsecondary career and technical institutions.—Section 504 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1864) is amended by striking “for fiscal year 2009” and all that follows through the period at the end and inserting “from the amount made available under section 3(b) for each fiscal year.”
(k) Clerical amendments.—The Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.), as amended by subsections (a) through (j), is further amended—
(1) by striking “Bureau of Indian Affairs” each place it appears and inserting “Bureau of Indian Education”;
(2) by striking “Navajo Community College Act” each place it appears and inserting “Dine´ College Act”;
(3) by striking “colleges or universities” each place it appears, including in headings, and inserting “colleges and universities”; and
(4) in section 109 (25 U.S.C. 1809), by redesignating the second subsection (c) as subsection (d).
(a) Short title.—The first section of Public Law 92–189 is amended by striking “this Act may be cited as the ‘Navajo Community College Act’” and inserting “this Act may be cited as the ‘Dine´ College Act’”.
(b) References.—Any reference to the Navajo Community College Act in any law (other than this Act), regulation, map, document, record, or other paper of the United States shall be deemed to be a reference to the Dine´ College Act.
Section 444(b) of the General Education Provisions Act (20 U.S.C. 1232g(b)) is amended—
(2) by inserting after subparagraph (L) the following:
“(M) an institution of postsecondary education in which the student was previously enrolled, to which records of postsecondary coursework and credits are sent for the purpose of applying such coursework and credits toward completion of a recognized postsecondary credential (as that term is defined in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102)), upon condition that the student provides written consent prior to receiving such credential.”.
Union Calendar No. 413 | |||||
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[Report No. 115–550] | |||||
A BILL | |||||
To support students in completing an affordable postsecondary education that will prepare them to enter the workforce with the skills they need for lifelong success. | |||||
February 8, 2018 | |||||
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed |