(a) Short title.—This Act may be cited as the “College Cost Reduction 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.

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.).

(a) Definitions.—Section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003) is amended by adding at the end the following:

“(25) CIP CODE.—The term ‘CIP code’ means the six-digit taxonomic identification code assigned by an institution of higher education to a specific program of study at the institution, determined by the institution in accordance with the Classification of Instructional Programs published by the National Center for Education Statistics.

“(26) CREDENTIAL LEVEL.—

“(A) IN GENERAL.—The term ‘credential level’ means the level of the degree or other credential awarded by an institution of higher education to students who complete a program of study of the institution. Each degree or other credential awarded by an institution shall be categorized by the institution as either undergraduate credential level or graduate credential level.

“(B) UNDERGRADUATE CREDENTIAL.—When used with respect to a credential or credential level, the term ‘undergraduate credential’ includes credentials such as an undergraduate certificate, an associate degree, a bachelor’s degree, and a post-baccalaureate certificate.

“(C) GRADUATE CREDENTIAL.—When used with respect to a credential or credential level, the term ‘graduate credential’ includes credentials such as a master’s degree, a doctoral degree, a professional degree, and a postgraduate certificate.

“(27) PROGRAM OF STUDY.—The term ‘program of study’ means an academic program of study offered to students by an institution of higher education that—

“(A) upon completion of the program, results in the award of a credential to a student, including a degree, diploma, or certificate, for one credential level;

“(B) is certified as a program of study in the institution’s program participation agreement under section 487; and

“(C) is classified by a combination of—

“(i) a CIP code; and

“(ii) one credential level, determined by the credential awarded upon completion of the program.

“(28) PROGRAM LENGTH.—The term ‘program length’ means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study and to obtain the degree or credential awarded by such program.

“(29) TIME TO CREDENTIAL.—The term ‘time to credential’ means, with respect to a student, the actual amount of time in weeks, months, or years it takes the student to complete the requirements for a specific program of study and to obtain the degree or credential awarded by such program.

“(30) VALUE-ADDED EARNINGS.—

“(A) CALCULATION.—With respect to a student who received Federal financial aid under title IV and who completed a program of study offered by an institution of higher education, the term ‘value-added earnings’ means—

“(i) the annual earnings of such student measured during the applicable earnings measurement period for such program (as determined under subparagraph (C)); minus

“(ii) in the case of a student who completed a program of study that awards—

“(I) an undergraduate credential, 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year; or

“(II) a graduate credential, 300 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year.

“(B) GEOGRAPHIC ADJUSTMENT.—

“(i) IN GENERAL.—Except as provided in clause (ii), the Secretary shall use the geographic location of the institution at which a student completed a program of study to adjust the value-added earnings of the student calculated under subclause (A) by dividing—

“(I) the difference between subclauses (I) and (II) of such subparagraph; by

“(II) the most recent regional price parity index of the Bureau of Economics Analysis for the State or, as applicable, metropolitan area in which such institution is located.

“(ii) EXCEPTION.—The value-added earnings of a student calculated under subparagraph (A) shall not be adjusted based on geographic location in accordance with clause (i) if such student attended principally through distance education.

“(C) EARNINGS MEASUREMENT PERIOD.—

“(i) IN GENERAL.—For the purpose of calculating the value-added earnings of a student, except as provided in clause (ii), the annual earnings of a student shall be measured—

“(I) in the case of a program of study that awards an undergraduate certificate, post baccalaureate certificate, or graduate certificate, one year after the student completes such program;

“(II) in the case of a program of study that awards an associate’s degree or master’s degree, 2 years after the student completes such program; and

“(III) in the case of a program of study that awards a bachelor’s degree, doctoral degree, or professional degree, 4 years after the student completes such program.

“(ii) EXCEPTION.—The Secretary may, as the Secretary determines appropriate based on the characteristics of a program of study, extend an earnings measurement period described in clause (i) for a program of study that—

“(I) requires completion of an additional educational program after completion of the program of study in order to obtain a licensure associated with the credential awarded for such program of study; and

“(II) when combined with the program length of such additional educational program for licensure, has a total program length that exceeds the relevant earnings measurement period prescribed for such program of study under clause (i),

except that in no case shall the annual earnings of a student be measured more than 5 years after the student completes a program of study.”.

(a) Institution financial aid offer.—Section 484 of the Higher Education Opportunity Act (20 U.S.C. 1092 note) is amended to read as follows:

(b) Use of mandatory financial aid offer and terms.—Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is amended by adding at the end the following:

(a) College scorecard website.—

(1) DEFINITIONS; CONFORMING AMENDMENTS.—Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a(a)) is amended—

(A) by amending subsection (a) to read as follows:

“(a) Definitions.—In this section:

“(1) COLLEGE SCORECARD WEBSITE.—The term ‘College Scorecard website’ means the College Scorecard website required under subsection (c) and includes any successor website.

“(2) COST OF ATTENDANCE.—The term ‘cost of attendance’ has the meaning given such term in section 472.

“(3) TOTAL NET PRICE REQUIRED FOR COMPLETION.—The term ‘total net price required for completion’ means, with respect to the period of completion of a program of study—

“(A) the sum of the required costs described in section 484(b)(3)(A)(i)(I) charged to a student for such period of completion; minus

“(B) the total amount of grant and scholarship aid described in paragraph (2) of section 484(b) that is available to the student for the costs described in subparagraph (A) for completion of a program of study.”;

(B) by striking subsections (b) through (g); and

(C) by redesignating subsection (h) as subsection (b).

(2) SCORECARD AUTHORIZED.—Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a) is further amended—

(A) by striking subsection (i); and

(B) by inserting after subsection (b) the following:

“(c) Consumer information.—

“(1) AVAILABILITY OF INFORMATION FOR TITLE IV INSTITUTIONS AND PROGRAMS.—Not later than 18 months after the date of the enactment of the College Cost Reduction Act, the Secretary shall make publicly available on the College Scorecard website the following aggregated information with respect to each institution of higher education and each program of study at such institution, as applicable, that participates in a program under title IV:

“(A) A link to the website of the institution.

“(B) A link to the net price calculator for such institution.

“(C) A link to the website of the institution containing campus safety data with respect to such institution.

“(D) The geographic location of the institution.

“(E) Information on the type of institution, including sector, size, predominant and highest credential awarded, research intensity, programs of study offered, and other characteristics of the institution.

“(F) Information on student enrollment, including the number and percentage of students enrolled full-time, less than full-time, and enrolled in distance education.

“(G) Information on student progression and completion, including time to credential and rates of withdrawal, retention, transfer, or completion.

“(H) Information on college costs and financial aid, including average, median, minimum, and maximum values of—

“(i) the cost of attendance, including such cost disaggregated by the costs described in paragraphs (1) through (14) of section 472(a);

“(ii) the grants and scholarships received by students at the institution and the number and percentage of such students receiving such grants and scholarships, disaggregated by source and whether such aid is need-based, merit-based, an athletic scholarship, or other type of grant or scholarship; and

“(iii) the total net price required for completion for students who received Federal financial assistance described in paragraph (2)(I).

“(I) Information on student debt and repayment, including—

“(i) the average, median, minimum, and maximum amounts borrowed by students under title IV; and

“(ii) information with respect to repayment of loans made under title IV, including borrower-based repayment rates, dollar-based repayment rates, and time spent in repayment.

“(J) Information on the earnings of students who received Federal financial assistance described in paragraph (2)(I), including the average, median, minimum, and maximum values of—

“(i) with respect to students who complete a program of study in an award year—

“(I) the annual earnings of such students; and

“(II) the value-added earnings of such students; and

“(ii) with respect to students who do not complete a program of study in an award year, the annual earnings of such students.

“(2) DISAGGREGATED INFORMATION.—The Secretary shall ensure the information described in paragraph (1) is disaggregated, as applicable, by the following student characteristics:

“(A) Financial circumstances including—

“(i) household income categories, as determined by students’ adjusted gross income, family size, and poverty line (as defined in section 401(a)); and

“(ii) student aid index categories, as determined by the Secretary.

“(B) Sex.

“(C) Race and ethnicity.

“(D) Classification as a student with a disability.

“(E) Enrollment status.

“(F) Residency status.

“(G) Status as an international student.

“(H) Status as a recipient of Federal financial assistance, including—

“(i) a Pell grant;

“(ii) a loan made under title IV; and

“(iii) veterans’ education benefits (as defined in section 480(c)).

“(J) Status as a participant in a program described in section 116(b)(3)(A)(ii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3131(b)(3)(A)(ii)).

“(3) INSTITUTIONAL AND PROGRAM COMPARISON.—The Secretary shall include on the College Scorecard website a method for users to easily compare institutions and programs, including in a manner that allows for such comparison based on—

“(A) the institutional and program information described in paragraph (1); and

“(B) the student characteristics described in paragraph (2).

“(4) UNIVERSAL NET PRICE CALCULATOR.—The Secretary shall include on the College Scorecard website a universal net price calculator that enables users to answer questions and receive personalized pricing information for each institution of higher education and program of study offered by such institution.

“(5) UPDATES.—

“(A) DATA.—The Secretary shall update the College Scorecard website not less than annually.

“(B) TECHNOLOGY AND FORMAT.—The Secretary shall regularly assess the format and technology of the College Scorecard website and make any changes or updates that the Secretary considers appropriate.

“(6) CONSUMER TESTING.—In developing and maintaining the College Scorecard website, the Secretary, in consultation with appropriate departments and agencies of the Federal Government, shall—

“(A) not later than 6 months after the date of the enactment of the College Cost Reduction Act, and not less than once every 3 years thereafter, 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 Scorecard website is usable and easily understandable and provides useful and relevant information to students and families; and

“(B) prominently display on such website in simple, understandable, and unbiased terms for the most recent academic year for which satisfactory data is available, the information described in paragraphs (1) and (2) that was determined to be useful and relevant to students and families based on the consumer testing described in subparagraph (A) for each institution and program of study (as applicable).

“(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 Scorecard 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 Scorecard website.

“(9) DATA COLLECTION AND DUPLICATED REPORTING.—Notwithstanding any other provision of this section, to the extent that another provision of this section requires the same reporting or collection of data that is required under this Act, an institution of higher education, or the Secretary or Commissioner, shall use the reporting or data required under this subsection to satisfy both requirements.

“(10) DATA PRIVACY.—

“(A) IN GENERAL.—The Secretary shall ensure any information made available under this section is made available in accordance with the privacy laws described in section 132(f)(1)(C)(iv).

“(B) SMALL INSTITUTIONS AND PROGRAM OF STUDY.—For purposes of publishing the information described in paragraphs (1) and (2), for any year for which the number of students is determined by the Secretary to be of insufficient size to maintain the privacy of student data, the Secretary shall—

“(i) aggregate up to 4 years of additional data for such program of study to obtain data for a sufficient number of students to maintain student privacy;

“(ii) in the case of a program of study, if the method described in clause (i) is insufficient to maintain student privacy, aggregate data for students who completed or who were enrolled in, as applicable, similar program of study of the institution to obtain data for a sufficient number of students to maintain student privacy; and

“(iii) in the case of a program of study, if the methods described in clauses (i) and (ii) are insufficient to maintain student privacy, or additional data described in such clauses is not available or can not be aggregated, aggregate data with respect to all students who completed or were enrolled in, as applicable, any program of study of the institution of the same credential level, in lieu of data specific to students in such program of study.”.

(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 Scorecard”.

(c) References.—Any reference in any law (other than the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)), 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 Scorecard website.

Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a) is further amended—

(1) by redesignating subsections (j) and (k) as subsections (d) and (e), respectively;

(2) by redesignating subsection (l) as subsection (g); and

(3) by inserting after subsection (e), as so redesignated, the following:

“(f) Postsecondary student data system.—

“(1) IN GENERAL.—

“(A) ESTABLISHMENT OF SYSTEM.—Not later than 3 years after the date of enactment of the College Cost Reduction Act, the Commissioner of the National Center for Education Statistics (referred to in this subsection as the ‘Commissioner’) in consultation with the Director of the Institute of Education Sciences (referred to as ‘the Director’) shall develop and maintain a secure and privacy-protected postsecondary student-level data system in order to—

“(i) accurately evaluate student enrollment patterns, progression, completion, and postcollegiate outcomes, and higher education costs and financial aid;

“(ii) assist with transparency, institutional improvement, and analysis of Federal aid programs;

“(iii) provide accurate, complete, and customizable information for students and families making decisions about postsecondary education; and

“(iv) reduce the reporting burden on institutions of higher education in accordance with section 111 of the College Cost Reduction Act.

“(B) AVOIDING DUPLICATE REPORTING.—Notwithstanding any other provision of this section, to the extent that another provision of this section requires the same reporting or collection of data that is required under this subsection, an institution of higher education, or the Secretary or Commissioner, shall use the reporting or data required for the postsecondary student data system under this subsection to satisfy both requirements.

“(C) DEVELOPMENT PROCESS.—In developing the postsecondary student data system described in this subsection, the Commissioner, in consultation with the Director, shall—

“(i) focus on the needs of—

“(I) users of the data system; and

“(II) entities, including institutions of higher education, reporting to the data system;

“(ii) take into consideration, to the extent practicable—

“(I) the guidelines outlined in—

“(aa) the ‘United States Web Design Standards’ maintained by the General Services Administration; and

“(bb) the ‘Digital Services Playbook’ and ‘TechFAR Handbook for Procuring Digital Services Using Agile Processes’ of the United States Digital Service; and

“(II) the relevant successor documents or recommendations of such guidelines;

“(iii) use modern, relevant privacy- and security-enhancing technology, and enhance and update the data system as necessary to carry out the purpose of this subsection;

“(iv) ensure data privacy and security is consistent with any relevant Federal law relating to privacy or data security, including—

“(I) the requirements of subchapter II of chapter 35 of title 44, United States Code, specifying security categorization under the Federal Information Processing Standards or any relevant successor of such standards;

“(II) security requirements that are consistent with the Federal agency responsibilities in section 3554 of title 44, United States Code, or any relevant successor of such responsibilities; and

“(III) security requirements, guidelines, and controls consistent with cybersecurity standards and best practices developed by the National Institute of Standards and Technology, including frameworks, consistent with section 2(c) of the National Institute of Standards and Technology Act (15 U.S.C. 272(c)), or any relevant successor of such frameworks;

“(v) follow Federal data minimization practices to ensure only the minimum amount of data is collected to meet the system’s goals, in accordance with Federal data minimization standards and guidelines developed by the National Institute of Standards and Technology; and

“(vi) provide notice to students outlining the data included in the system and how the data are used.

“(D) LIMITATION.—The data system developed under this subsection may only include data with respect to—

“(i) students receiving—

“(I) Federal financial assistance under title IV of this Act; or

“(II) veteran’s education benefits, as defined in section 480(c); and

“(ii) participants in a program described in section 116(b)(3)(A)(ii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3131(b)(3)(A)(ii)).

“(2) DATA ELEMENTS.—

“(A) IN GENERAL.—Not later than 3 years after the date of enactment of the College Cost Reduction Act, the Commissioner, in consultation with the Postsecondary Student Data System Advisory Committee and the Director, established under subparagraph (B), shall determine—

“(i) the data elements to be included in the postsecondary student data system, in accordance with subparagraphs (C) and (D); and

“(ii) how to include the data elements required under subparagraph (C), and any additional data elements selected under subparagraph (D), in the postsecondary student data system.

“(B) POSTSECONDARY STUDENT DATA SYSTEM ADVISORY COMMITTEE.—

“(i) ESTABLISHMENT.—Not later than 1 year after the date of enactment of the College Cost Reduction Act, the Commissioner, in consultation with the Director, shall establish a Postsecondary Student Data System Advisory Committee (referred to in this subsection as the ‘Advisory Committee’), whose members shall include—

“(I) the Chief Privacy Officer of the Department or an official of the Department delegated the duties of overseeing data privacy at the Department;

“(II) the Chief Security Officer of the Department or an official of the Department delegated the duties of overseeing data security at the Department;

“(III) representatives of diverse institutions of higher education, which shall include equal representation between 2-year and 4-year institutions of higher education, and from public, nonprofit, and proprietary institutions of higher education, including minority-serving institutions;

“(IV) representatives from State higher education agencies, entities, bodies, or boards;

“(V) representatives of postsecondary students;

“(VI) representatives from relevant Federal agencies;

“(VII) individuals with expertise in data privacy and security; and

“(VIII) other stakeholders (including individuals with consumer protection and postsecondary education research).

“(ii) REQUIREMENTS.—The Commissioner, working with the Director, shall ensure that the Advisory Committee—

“(I) adheres to all requirements under chapter 10 of title 5, United States Code (commonly known as the ‘Federal Advisory Committee Act’);

“(II) establishes operating and meeting procedures and guidelines necessary to execute its advisory duties; and

“(III) is provided with appropriate staffing and resources to execute its advisory duties.

“(C) REQUIRED DATA ELEMENTS.—The data elements in the postsecondary student data system shall include the following:

“(i) Student-level data elements necessary to calculate the information within the surveys designated by the Commissioner as ‘student-related surveys’ in the Integrated Postsecondary Education Data System (IPEDS), as such surveys are in effect on the day before the date of enactment of the College Cost Reduction Act, except that in the case that collection of such elements would conflict with the prohibition under subparagraph (F), such elements in conflict with such prohibition shall be included in the aggregate instead of at the student level.

“(ii) Student-level data elements reported by institutions in accordance with section 668.408 of title 34, Code of Federal Regulations, as in effect on July 1, 2024.

“(iii) Student-level data elements necessary to allow for reporting student enrollment, persistence, progression (including credit accumulation) retention, transfer, completion, and time and credits to credential measures for all credential levels separately (including certificate, associate, baccalaureate, and advanced degree levels), within and across institutions of higher education (including across all categories of institution level, control, and predominant degree awarded). The data elements shall allow for reporting about all such data disaggregated by the following categories:

“(I) Enrollment status as a first-time student, recent transfer student, or other nonfirst-time student.

“(II) Attendance intensity, whether full-time or part-time.

“(III) Credential-seeking status, by credential level (including noncredit-seeking and noncredit credentials).

“(IV) Race or ethnicity, in a manner that captures all the racial groups specified in the most recent American Community Survey of the Bureau of the Census.

“(V) Age intervals.

“(VI) Sex.

“(VII) Status as a first generation college student (as defined in section 402A(h)).

“(VIII) Economic status.

“(IX) Measures related to college readiness, including participation in postsecondary remedial coursework or gateway course completion.

“(X) Program of study.

“(XI) Status as an online education student, whether exclusively or partially enrolled in online education.

“(XII) Military or veteran benefit status (as determined based on receipt of veteran’s education benefits, as defined in section 480(c)).

“(XIII) Federal Pell Grant recipient status under section 401 and Federal loan recipient status under title IV.

“(XIV) Status as a participant in a program described in section 116(b)(3)(A)(ii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3131(b)(3)(A)(ii)).

“(D) REEVALUATION.—Not less than once every 3 years after the implementation of the postsecondary student data system described in this subsection, the Commissioner, in consultation with the Advisory Committee described in subparagraph (B) and working with the Director, shall report to Congress the data elements included in the postsecondary student data system and recommend any additional data elements to be included in such system.

“(E) PROHIBITIONS.—The postsecondary student data system shall not include individual health data (including data relating to physical health or mental health), student discipline records or data, elementary and secondary education data, an exact address, course grades, postsecondary entrance examination results, political affiliation, religion, or any other data in the postsecondary student data system not described in this subsection.

“(3) PERIODIC MATCHING WITH OTHER FEDERAL DATA SYSTEMS.—

“(A) DATA SHARING AGREEMENTS.—

“(i) IN GENERAL.—The Commissioner, in consultation with the Director, shall ensure secure and privacy-protected periodic data matches by entering into data sharing agreements with each of the following Federal agencies and offices:

“(I) The Secretary of the Treasury and the Commissioner of the Internal Revenue Service, in order to calculate aggregate program- and institution-level earnings of postsecondary students described in subparagraph (B)(ii).

“(II) The Secretary of Defense, in order to assess the use of postsecondary educational benefits and the outcomes of servicemembers who are receiving veteran’s education benefits (as defined in section 480(c)).

“(III) The Secretary of Veterans Affairs, in order to assess the use of postsecondary educational benefits and outcomes of veterans who are receiving veteran’s education benefits (as defined in section 480(c)).

“(IV) The Director of the Bureau of the Census, in order to assess the employment outcomes of former postsecondary education students described in paragraph (1)(D).

“(V) The Chief Operating Officer of the Office of Federal Student Aid, in order to analyze the use of postsecondary educational benefits provided under this Act.

“(VI) The Commissioner of the Social Security Administration, in order to evaluate labor market outcomes of former postsecondary education students described in paragraph (1)(D).

“(VII) The Secretary of Health and Human Services, in order to evaluate the wages of former postsecondary education students described in paragraph (1)(D).

“(ii) DATA SHARING AGREEMENTS.—The heads of Federal agencies and offices described under clause (i) shall enter into data sharing agreements with the Commissioner to ensure secure and privacy-protected periodic data matches as described in this paragraph.

“(B) CATEGORIES OF DATA.—The Commissioner, in consultation with the Director, shall, at a minimum, seek to ensure that the secure and privacy-protected periodic data matches described in subparagraph (A) permit consistent reporting of the following categories of data for students described in paragraph (1)(D) who completed a program of study and who did not complete a program of study:

“(i) Enrollment, retention, transfer, and completion outcomes.

“(ii) Financial indicators for postsecondary students receiving Federal grants and loans, including grant and loan aid by source, cumulative student debt, loan repayment status, and repayment plan.

“(iii) Post-completion outcomes, including earnings and employment (including industry, occupation, and location of employment, and further education, by program of study and credential level) and as measured at time intervals appropriate to the credential sought and earned.

“(C) PERIODIC DATA MATCH STREAMLINING AND CONFIDENTIALITY.—

“(i) STREAMLINING.—In carrying out the secure and privacy-protected periodic data matches under this paragraph, the Commissioner shall—

“(I) ensure that such matches are not continuous, but occur only periodically at appropriate intervals, as determined by the Commissioner to meet the goals of subparagraph (A); and

“(II) seek to—

“(aa) streamline the data collection and reporting requirements for institutions of higher education;

“(bb) minimize duplicative reporting across or within Federal agencies or departments, including reporting requirements applicable to institutions of higher education under the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.) and the Carl D. Perkins Career and Technical Education Act of 2006;

“(cc) protect student privacy; and

“(dd) streamline the application process for student loan benefit programs available to borrowers based on data available from different Federal data systems.

“(ii) REVIEW.—Not less often than once every 3 years after the establishment of the postsecondary student data system under this subsection, the Commissioner, in consultation with the Advisory Committee and the Director, shall review methods for streamlining data collection from institutions of higher education and minimizing duplicative reporting within the Department and across Federal agencies that provide data for the postsecondary student data system.

“(iii) CONFIDENTIALITY.—The Commissioner shall ensure that any periodic matching or sharing of data through periodic data system matches established in accordance with this paragraph—

“(I) complies with the security and privacy protections described in paragraph (1)(C)(iv) and other Federal data protection protocols;

“(II) follows industry best practices commensurate with the sensitivity of specific data elements or metrics;

“(III) does not result in the creation of a single standing, linked Federal database at the Department that maintains the information reported across other Federal agencies; and

“(IV) discloses to postsecondary students what data are included in the data system and periodically matched and how the data are used.

“(iv) CORRECTION.—The Commissioner, in consultation with the Advisory Committee and Director, shall establish a process for students to request access to only their personal information for inspection and request corrections to inaccuracies in a manner that protects the student’s personally identifiable information. The Commissioner shall respond in writing to every request for a correction from a student.

“(4) PUBLICLY AVAILABLE INFORMATION.—

“(A) IN GENERAL.—The Commissioner shall make the summary aggregate information described in subparagraph (C), at a minimum, publicly available through a user-friendly consumer information website and analytic tool for institutional and research use that—

“(i) provides appropriate mechanisms for users to customize and filter information by institutional and student characteristics;

“(ii) allows users to build summary aggregate reports of information, including reports that allow comparisons across multiple institutions and programs, subject to subparagraph (B);

“(iii) uses appropriate statistical disclosure limitation techniques necessary to ensure that the data released to the public cannot be used to identify specific individuals; and

“(iv) provides users with appropriate contextual factors to make comparisons, which may include national median figures of the summary aggregate information described in subparagraph (C).

“(B) NO PERSONALLY IDENTIFIABLE INFORMATION AVAILABLE.—The summary aggregate information described in this paragraph shall not include personally identifiable information.

“(C) SUMMARY AGGREGATE INFORMATION AVAILABLE.—The summary aggregate information described in this paragraph shall, at a minimum, include each of the following for each institution of higher education:

“(i) Measures of student access, including—

“(I) admissions selectivity and yield; and

“(II) enrollment, disaggregated by each category described in paragraph (2)(C)(iii).

“(ii) Measures of student progression, including retention rates and persistence rates, disaggregated by each category described in paragraph (2)(C)(iii).

“(iii) Measures of student completion, including—

“(I) transfer rates and outcomes, completion rates, and time and credits to credential, disaggregated by each category described in paragraph (2)(C)(iii); and

“(II) number of completions, disaggregated by each category described in paragraph (2)(C)(iii).

“(iv) Measures of student costs, including—

“(I) tuition, required fees, cost of attendance, grants and scholarships, net price, and unmet need disaggregated by in-State tuition or in-district tuition status (if applicable), direct and indirect costs, program of study (if applicable), and credential level; and

“(II) typical grant amounts and loan amounts received by students reported separately from Federal, State, local, institutional, employers, and other sources, and cumulative debt, disaggregated by—

“(aa) each category described in paragraph (2)(C)(iii); and

“(bb) completion status.

“(v) Measures of postcollegiate student outcomes, including return on investment, employment rates, earnings, loan repayment and default rates, and further education rates. These measures shall—

“(I) be disaggregated by—

“(aa) each category described in paragraph (2)(C)(iii); and

“(bb) completion status; and

“(II) be measured immediately after leaving postsecondary education and at time intervals appropriate to the credential sought or earned.

“(D) DEVELOPMENT CRITERIA.—In developing the method and format of making the information described in this paragraph publicly available, the Commissioner shall—

“(i) focus on the needs of the users of the information, which will include students, families of students, potential students, researchers, and other consumers of education data;

“(ii) take into consideration, to the extent practicable, the guidelines described in paragraph (1)(C)(ii)(I), and relevant successor documents or recommendations of such guidelines;

“(iii) use modern, relevant technology and enhance and update the postsecondary student data system with information, as necessary to carry out the purpose of this paragraph;

“(iv) ensure data privacy and security in accordance with standards and guidelines developed by the National Institute of Standards and Technology, and in accordance with any other Federal law relating to privacy or security, including complying with the requirements of subchapter II of chapter 35 of title 44, United States Code, specifying security categorization under the Federal Information Processing Standards, and security requirements, and setting of National Institute of Standards and Technology security baseline controls at the appropriate level; and

“(v) conduct consumer testing to determine how to make the information as meaningful to users as possible.

“(5) PERMISSIBLE DISCLOSURES OF DATA.—

“(A) DATA REPORTS AND QUERIES.—

“(i) IN GENERAL.—Not later than 3 years after the date of enactment of the College Cost Reduction Act, the Commissioner in consultation with the Director, shall develop and implement a secure and privacy-protected process for making student-level, nonpersonally identifiable information, with direct identifiers removed, from the postsecondary student data system available for vetted research and evaluation purposes approved by the Commissioner in a manner compatible with practices for disclosing National Center for Education Statistics restricted-use survey data as in effect on the day before the date of enactment of the College Cost Reduction Act, or by applying other research and disclosure restrictions to ensure data privacy and security. Such process shall be approved by the National Center for Education Statistics’ Disclosure Review Board (or successor body).

“(ii) PROVIDING DATA REPORTS AND QUERIES TO INSTITUTIONS AND STATES.—

“(I) IN GENERAL.—The Commissioner shall provide feedback reports, at least annually, to each institution of higher education, each postsecondary education system that fully participates in the postsecondary student data system, and each State higher education body as designated by the governor.

“(II) FEEDBACK REPORTS.—The feedback reports provided under this clause shall include program-level and institution-level information from the postsecondary student data system regarding students who are associated with the institution or, for State representatives, the institutions within that State, on or before the date of the report, on measures including student mobility (including transfer and completion rates) and workforce outcomes, provided that the feedback aggregate summary reports protect the privacy of individuals.

“(III) DETERMINATION OF CONTENT.—The content of the feedback reports shall be determined by the Commissioner in consultation with the Advisory Committee and the Director.

“(iii) PERMITTING STATE DATA QUERIES.—The Commissioner shall, in consultation with the Advisory Committee and as soon as practicable, create a process through which States may submit lists of secondary school graduates within the State to receive summary aggregate outcomes for those students who enrolled at an institution of higher education, including postsecondary enrollment, retention and transfer, and college completion, provided that those data protect the privacy of individuals and that the State data submitted to the Commissioner are not stored in the postsecondary education system.

“(iv) REGULATIONS.—The Commissioner shall promulgate regulations to ensure fair, secure and privacy-protected, and equitable access to data reports and queries under this paragraph.

“(B) DISCLOSURE LIMITATIONS.—In carrying out the public reporting and disclosure requirements of this subsection, the Commissioner shall use appropriate statistical disclosure limitation techniques necessary to ensure that the data released to the public cannot include personally identifiable information or be used to identify specific individuals.

“(C) SALE OF DATA PROHIBITED.—Data collected under this subsection, including the public-use data set and data comprising the summary aggregate information available under paragraph (4), shall not be sold to any third party by the Commissioner, including any institution of higher education or any other entity.

“(D) LIMITATION ON USE BY OTHER FEDERAL AGENCIES.—

“(i) IN GENERAL.—The Commissioner shall not allow any other Federal agency to use data collected under this subsection for any purpose except—

“(I) for vetted research and evaluation conducted by the other Federal agency, as described in subparagraph (A)(i); or

“(II) for a purpose explicitly authorized by an Act of Congress.

“(ii) PROHIBITION ON LIMITATION OF SERVICES.—The Secretary, or the head of any other Federal agency, shall not use data collected under this subsection to limit services to students.

“(E) LAW ENFORCEMENT.—Personally identifiable information collected under this subsection shall not be used for any Federal, State, or local law enforcement activity or any other activity that would result in adverse action against any student or a student’s family.

“(F) LIMITATION OF USE FOR FEDERAL RANKINGS OR SUMMATIVE RATING SYSTEM.—The comprehensive data collection and analysis necessary for the postsecondary student data system under this subsection shall not be used by the Secretary or any Federal entity to establish any Federal ranking system of institutions of higher education or a system that results in a summative Federal rating of institutions of higher education.

“(G) RULE OF CONSTRUCTION.—Nothing in this paragraph shall be construed to prevent the use of individual categories of aggregate information to be used for accountability purposes.

“(H) RULE OF CONSTRUCTION REGARDING COMMERCIAL USE OF DATA.—Nothing in this paragraph shall be construed to prohibit third-party entities from using publicly available information in this data system for commercial use.

“(6) SUBMISSION OF DATA.—

“(A) REQUIRED SUBMISSION.—Each institution of higher education participating in a program under title IV, or the assigned agent of such institution, shall, for each instructional program, and in accordance with section 487(a)(17), collect, and submit to the Commissioner, the data requested by the Commissioner to carry out this subsection.

“(B) VOLUNTARY SUBMISSION.—Any institution of higher education not participating in a program under title IV may voluntarily participate in the postsecondary student data system under this subsection by collecting and submitting data to the Commissioner, as the Commissioner may request to carry out this subsection.

“(C) PERSONALLY IDENTIFIABLE INFORMATION.—In accordance with paragraph (2)(C)(i), if the submission of an element of student-level data is prohibited under paragraph (2)(F) (or otherwise prohibited by law), the institution of higher education shall submit that data to the Commissioner in the aggregate.

“(7) UNLAWFUL WILLFUL DISCLOSURE.—

“(A) IN GENERAL.—It shall be unlawful for any person who obtains or has access to personally identifiable information in connection with the postsecondary student data system described in this subsection to willfully disclose to any person (except as authorized in this Act or by any Federal law) such personally identifiable information.

“(B) PENALTY.—Any person who violates subparagraph (A) shall be subject to a penalty described under section 3572(f) of title 44, United States Code, and section 183(d)(6) of the Education Sciences Reform Act of 2002 (20 U.S.C. 9573(d)(6)).

“(C) EMPLOYEE OF OFFICER OF THE UNITED STATES.—If a violation of subparagraph (A) is committed by any officer or employee of the United States, the officer or employee shall be dismissed from office or discharged from employment upon conviction for the violation.

“(8) DATA SECURITY.—The Commissioner shall produce and update as needed guidance and regulations relating to privacy, security, and access which shall govern the use and disclosure of data collected in connection with the activities authorized in this subsection. The guidance and regulations developed and reviewed shall protect data from unauthorized access, use, and disclosure, and shall include—

“(A) an audit capability, including mandatory and regularly conducted audits;

“(B) access controls;

“(C) requirements to ensure sufficient data security, quality, validity, and reliability;

“(D) confidentiality protection in accordance with the applicable provisions of subchapter III of chapter 35 of title 44, United States Code;

“(E) appropriate and applicable privacy and security protection, including data retention and destruction protocols and data minimization, in accordance with the most recent Federal standards developed by the National Institute of Standards and Technology; and

“(F) protocols for managing a breach, including breach notifications, in accordance with the standards of National Center for Education Statistics.

“(9) DATA COLLECTION.—The Commissioner shall ensure that data collection, maintenance, and use under this subsection complies with section 552a of title 5, United States Code.

“(10) DEFINITIONS.—In this subsection:

“(A) INSTITUTION OF HIGHER EDUCATION.—The term ‘institution of higher education’ has the meaning given the term in section 102.

“(B) MINORITY-SERVING INSTITUTION.—The term ‘minority-serving institution’ means an institution of higher education listed in section 371(a).

“(C) PERSONALLY IDENTIFIABLE INFORMATION.—The term ‘personally identifiable information’ means personally identifiable information within the meaning of section 444 of the General Education Provisions Act.”.

(a) In general.—Section 134(b) of the Higher Education Act of 1965 (20 U.S.C. 1015c(b)) is amended to read as follows:

“(b) Exception.—The provisions of subsection (a) shall not apply to a system (or a successor system)—

“(1) that—

“(A) is necessary for the operation of programs authorized by title II, IV, or VII; and

“(B) was in use by the Secretary, directly or through a contractor, as of the day before the date of enactment of the College Cost Reduction Act; or

“(2) required under section 132.”.

(b) Program participation agreements.—

(1) IN GENERAL.—Paragraph (17) of section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended to read as follows:

“(17) The institution or the assigned agent of the institution will collect and submit to the Commissioner for Education Statistics data in accordance with section 132(f), the non-student related surveys within the Integrated Postsecondary Education Data System (IPEDS), or any other Federal institution of higher education data collection effort (as designated by the Secretary), in a timely manner and to the satisfaction of the Secretary.”.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect no later than 3 years after the date of enactment of this Act.

(c) Reporting burden.—The Secretary of Education and the Commissioner for Education Statistics shall take such steps as are necessary to ensure that the development and maintenance of the postsecondary student data system required under section 132(f) of the Higher Education Act of 1965, as added by section 113 of this Act, occurs in a manner that reduces the reporting burden for entities that reported into the Integrated Postsecondary Education Data System (IPEDS).

(a) Amount of need.—Section 471 (20 U.S.C. 1087kk), as amended by the FAFSA Simplification Act, is further amended by amending paragraph (1) to read as follows:

“(1) (A) for award year 2024–2025, the cost of attendance of such student; and

“(B) for award year 2025–2026 and each subsequent award year, the median cost of college of the program of study of such student, minus”.

(b) Cost of attendance.—Section 472(c) (20 U.S.C. 1087ll(c)), as amended by the FAFSA Simplification Act, is further amended by striking “of the institution” and inserting “of each program of study at the institution”.

(c) Median cost of college.—Part F of title IV (20 U.S.C. 1087kk), as amended by the FAFSA Simplification Act, is further amended by inserting after section 472, as amended by subsection (b), the following:

(a) Award may not exceed median cost of college.—Section 401(b)(3) (20 U.S.C. 1070a(b)(3)), as amended by title VII of division FF of the Consolidated Appropriations Act, 2021 (title VII of division FF of Public Law 116–260) (referred to in this Act as the “FAFSA Simplification Act”), is further amended by adding at the end the following:

“(3) AWARD MAY NOT EXCEED MEDIAN COST OF COLLEGE.—No Federal Pell Grant under this subpart shall exceed the median cost of college (as defined in section 472A) for the program at which that student is in attendance. If, with respect to any student, it is determined that the amount of a Federal Pell Grant for that student exceeds the median cost of college for such program for that year, the amount of the Federal Pell Grant shall be reduced until the Federal Pell Grant does not exceed the median cost of college for such program for that year.”.

(b) Pell PLUS program.—Section 401 (20 U.S.C. 1070a), as amended by the FAFSA Simplification Act, is further amended by adding at the end the following:

“(k) Pell plus program.—

“(1) PROGRAM ESTABLISHED.—

“(A) IN GENERAL.—For each award year for which a student receives a Federal Pell Grant and meets the requirements of paragraph (2), the Secretary shall award such student an additional Federal Pell Grant, referred to as a ‘Federal Pell Plus Grant’, in an amount equal to the amount of the student’s Federal Pell Grant award determined under this section for such award year, except as provided in subparagraph (B).

“(B) MEDIAN COST OF COLLEGE REDUCTIONS.—In any case in which a student is awarded a Federal Pell Grant under this section and a Federal Pell Plus grant under this subsection for an award year, the combined total of such Federal Pell Grant and such Federal Pell Plus Grant of such student shall not exceed the median cost of college (as defined in section 472A) of the program in which the student is in attendance for that year. In the case that such combined total exceeds the median cost of college for the program for that year, the Secretary shall reduce the amount of the Federal Pell Plus Grant awarded to the student until the combined total of such reduced Federal Pell Plus Grant and the Federal Pell Grant of the student does not exceed such median cost of college.

“(2) STUDENT ELIGIBILITY.—A student meets the requirements of this paragraph, if the student—

“(A) during the award year during which the student receives a Federal Pell Plus Grant under paragraph (1)—

“(i) is enrolled in the student’s first undergraduate baccalaureate course of study; and

“(ii) is maintaining progress toward completion within 100 percent of the expected time to completion, as determined by calculating the difference between—

“(I) the program length for the program of study in which such student is in attendance; and

“(II) the period of such program that such student has completed; and

“(B) has completed at least 4 semesters, or the equivalent, of such program.

“(3) DURATION LIMITS.—The period during which a student receives a Federal Pell Plus Grant under paragraph (1) shall be included in calculating the duration limits with respect to such student under subsection (d)(5), and to the extent that such period was a fraction of a semester or the equivalent, only that same fraction of such semester or equivalent shall count towards such duration limits.

“(4) PELL PLUS INSTITUTIONAL AND PROGRAMMATIC ELIGIBILITY.—For purposes of this subsection, a Pell Plus institution is an eligible institution for purposes of this subpart that—

“(A) notifies the Secretary that the institution desires to participate in the Pell Plus program under this subsection—

“(i) with respect to a specific program of study at the institution; or

“(ii) with respect to each program of study at the institution;

“(B) agrees to provide, to each student receiving a Federal Pell Plus Grant under paragraph (1)—

“(i) for each award year for which the student receives such Federal Pell Plus Grant, a notification that shall include—

“(I) whether the student is maintaining the progress toward completion required under paragraph (2)(A)(ii);

“(II) in a case in which the student is not maintaining such progress toward completion, a list of available student support services and additional resources to assist the student in completing the course of study for which the student is receiving the Federal Pell Plus Grant in the manner described under paragraph (2)(A)(ii); and

“(III) the amount of funds the student is receiving under the Federal Pell Plus Grant; and

“(ii) in the case of a student who, as of the end of the first semester of the third academic year of the program of study in which the student is in attendance, is not maintaining the progress toward completion required under paragraph (2)(A)(ii), a warning during such third academic year that the student will not be eligible for a Federal Pell Plus Grant under paragraph (1) for the fourth academic year of such course of study unless the student demonstrates, by not later than the beginning of the fourth academic year, progress toward completing such course of study by the end of the fourth academic year of such course of study;

“(C) meets the requirements of paragraph (5); and

“(D) the Secretary determines meets the requirements of this paragraph and paragraph (5).

“(5) MAXIMUM TOTAL PRICE GUARANTEE.—

“(A) GUARANTEE.—To be eligible to be a Pell Plus institution under this subsection, an eligible institution shall—

“(i) provide to each student receiving a Federal Pell Grant, prior to the first award year in which the student enrolls at the institution—

“(I) for each program of study participating in the Pell Plus program, the maximum total price for completion of the program of study, determined by the institution in accordance with section 415C(e); and

“(II) a guarantee that, for the minimum guarantee period for which the student receives a Federal Pell Grant, if the student is enrolled in any program of study participating in the Pell Plus program, the maximum total price for completion of such program of study charged to the student will not exceed the median value-added earnings of students who completed such program, based on the most recent data available on the College Scorecard in the award year prior to the first award year in which the student enrolls at the institution; and

“(ii) provide information about the guarantee described in clause (i)(II) to prospective students by including such information on the public website of the institution and in the catalog, marketing materials, and other official publications of the institution.

“(B) DURATION OF MINIMUM GUARANTEE PERIOD.—

“(i) IN GENERAL.—The minimum period during which a student shall be provided a guarantee under subparagraph (A) with respect to the maximum total price for completion of a program of study at an eligible institution shall be the median time to credential of students who completed any undergraduate program of study at the institution during the most recent award year for which data are available, except that such minimum guarantee period shall not be less than the program length of the program of study in which the student is enrolled.

“(ii) LIMITATION.—An eligible institution shall not be required to provide a maximum total price guarantee under subparagraph (A) to a student after the conclusion of the 6-year period beginning on the first day on which the student enrolled at such institution.”.

(c) Information dissemination activity.—Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended—

(1) in subparagraph (U), by striking “and” at the end;

(2) in subparagraph (V), by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(W) in the case of an institution under section 401(k), any applicable information with respect to the institution’s participation in the Federal Pell Plus Grant program under such subsection.”.

(d) Effective date.—The amendments made by this section shall take effect with respect to award year 2025–2026 and each succeeding award year.

(a) Termination of certain programs.—Notwithstanding subparts 3 and 4 of part A, or part C, of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), or any other provision of law, except as expressly authorized by an Act of Congress enacted after the date of enactment of this Act, beginning on October 1, 2026—

(1) no funds are authorized to be appropriated, or may be expended, under this Act or any other Act to—

(A) make payments to institutions for Federal Supplemental Educational Opportunity Grants under subpart 3 of part A of title IV of such Act (20 U.S.C. 1070b et seq.); or

(B) make payments to States for the Leveraging Educational Assistance Partnership Program under subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.); and

(2) the authority of the Secretary to carry out any program or activity described in paragraph (1) shall be terminated.

(b) Promise grants.—Subpart 4 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070c et seq.) is amended to read as follows:

(a) Stafford loans.—

(1) AGGREGATE AND ANNUAL LIMITS FOR GRADUATE AND PROFESSIONAL STUDENTS.—Section 455(a) (20 U.S.C. 1087e(a)) is amended—

(A) in paragraph (3)—

(i) in subparagraph (A)(ii), by inserting before the period at the end the following: “, except that for any period of instruction beginning on or after July 1, 2025, such maximum annual amount shall be determined in accordance with subparagraph (C)”;

(ii) in subparagraph (B), by inserting before the period at the end the following: “for any period of instruction through June 30, 2025”; and

(iii) by adding at the end the following:

“(C) ANNUAL LIMITS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that a graduate or professional student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be median cost of college (as defined in section 472A) of the program of study in which the student is enrolled, except that the sum of such annual loan amount and other financial assistance (as defined in section 480(i)) that the student receives for such academic year may not exceed the cost of attendance of such student.

“(D) AGGREGATE LIMITS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that—

“(i) a graduate student may borrow shall be $100,000; and

“(ii) a professional student may borrow shall be $150,000.

“(E) EXCEPTION FOR CERTAIN STUDENTS.—

“(i) IN GENERAL.—The provisions listed in clause (ii) shall not apply with respect to any individual who, as of June 30, 2025, is enrolled in a program of study at an institution of higher education, and has received a loan (or on whose behalf a loan was made) under this part for such program, during the individual’s expected time to completion of such program, as determined by calculating by the difference between—

“(I) the program length for the program of study in which such individual is enrolled; and

“(II) the period of such program that such individual has completed,

except that such expected time to completion may not exceed 3 years.

“(ii) PROVISIONS.—An individual described in clause (i) shall not be subject to subparagraphs (C) and (D) of this paragraph, or paragraph (4) or (6).”.

(2) ANNUAL LIMITS FOR UNDERGRADUATE BORROWERS.—Section 455(a) (20 U.S.C. 1087e(a)) is further amended by adding at the end the following:

“(4) ANNUAL AND AGGREGATE LOAN LIMITS FOR UNDERGRADUATE AND ALL BORROWERS.—

“(A) UNDERGRADUATE STUDENTS.—

“(i) ANNUAL LOAN LIMITS.—

“(I) SUBSIDIZED LOANS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum annual amount of Federal Direct Stafford loans that an undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the difference between—

“(aa) the median cost of college (as defined in section 472A) of the program of study in which the student is enrolled; and

“(bb) the sum of the Federal Pell Grant and Federal Pell Plus Grant under section 401 awarded to the student for such academic year,

except that (1) the amount of such Federal Direct Stafford loans awarded to the student for such academic year may not exceed the maximum annual limit described in section 428(b)(1) that is applicable to such student; and (2) the sum of such Federal Direct Stafford Loans, the amount of such Federal Pell Grant, Federal Pell Plus Grant, and other financial assistance (as defined in section 480(i)) that the student receives for such academic year may not exceed the cost of attendance of such student.

“(II) UNSUBSIDIZED LOANS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that an undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the difference between—

“(aa) the median cost of college (as defined in section 472A) of the program of study in which the student is enrolled; and

“(bb) the sum of—

“(AA) the amount of Federal Direct Stafford loans awarded to such student for such academic year; and

“(BB) the amount of the Federal Pell Grant and Federal Pell Plus Grant under section 401 awarded to the student for such academic year,

except that the sum of all Federal financial aid under this title and other financial assistance (as defined in section 480(i)) that such student receives for such academic year may not exceed the cost of attendance for such student.

“(ii) AGGREGATE LIMITS.—Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, with respect to an undergraduate student—

“(I) the maximum aggregate amount of Federal Direct Stafford loans and Federal Direct Unsubsidized Stafford loans that may be borrowed shall be $50,000;

“(II) the maximum aggregate amount of Federal Direct Stafford loans that may be borrowed shall be $23,000; and

“(III) the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that may be borrowed shall be $50,000.

“(B) STUDENTS IN A QUALIFYING UNDERGRADUATE PROGRAM.—

“(i) AGGREGATE LIMITS.—Notwithstanding the aggregate limits described in subparagraph (A)(ii), a student enrolled in a qualifying undergraduate program shall be subject to the aggregate limits for professional students described in paragraph (3)(D)(ii).

“(ii) QUALIFYING UNDERGRADUATE PROGRAM DEFINED.—For purposes of this subparagraph, the term ‘qualifying undergraduate program’ means a program of study—

“(I) for which the total tuition and fees (including the required costs described in section 484(b)(3)(A)(i)(I)) exceeds the aggregate limits for undergraduate students described in subparagraph (A)(ii);

“(II) that meets certification requirements of the Federal agency that directly regulates the program and provides final licensing and credentials to students upon completion; and

“(III) that has had, for the previous three award years—

“(aa) a verified completion rate of at least 70 percent, within 150 percent of the program length of such program of study; and

“(bb) a verified job placement rate of at least 70 percent, measured 180 days after completion.

“(C) ALL STUDENTS.—The maximum aggregate amount of loans made, insured, or guaranteed under this title to a student shall be $200,000.”.

(3) INSTITUTIONALLY DETERMINED LIMITS.—Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is further amended by adding at the end the following:

“(5) INSTITUTIONALLY DETERMINED LIMITS.—

“(A) 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 who is enrolled in a program of study for a period of instruction beginning on or after July 1, 2024, at that institution, may borrow under this part for an academic year—

“(i) if the institution can reasonably demonstrate that outstanding amounts owed of loans made under this title are or would be excessive for students who complete such program, based on the most recently available data from the College Scorecard (or successor website of the Department) on—

“(I) the median of the value-added earnings of students who complete such program; and

“(II) the median debt owed, and the repayment rate, on loans made under this part, of such students;

“(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; or

“(iii) based on the year of the program for which the student is seeking such loan.

“(B) APPLICATION TO ALL STUDENTS.—Any proration or limiting of loan amounts under subparagraph (A) shall be applied in the same manner to all students enrolled in a program of study.

“(C) INCREASES FOR INDIVIDUAL STUDENTS.—Upon the request of a student whose loan amount for an academic year has been prorated or limited under subparagraph (A), 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 paragraph for such academic year.”.

(b) Termination of authority To make Federal direct plus loans to any student or parent borrower.—Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding at the end the following:

“(6) TERMINATION OF AUTHORITY TO MAKE FEDERAL DIRECT PLUS LOANS.—Notwithstanding any provision of this part or part B, except as provided in paragraph (3)(E), for any period of instruction beginning on or after July 1, 2025, no Federal Direct PLUS loans may be made to any parent borrower or graduate or professional student borrower.”.

(a) Repayment plans.—Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is amended—

(1) in paragraph (1)(D) by inserting “(including a repayment assistance plan under 455(e)(9))” after “an income contingent repayment plan”; and

(2) by adding at the end the following:

“(6) REPAYMENT PLANS FOR LOANS MADE ON OR AFTER JULY 1, 2024.—

“(A) DESIGN AND SELECTION.—Notwithstanding paragraph (1), beginning on July 1, 2024, the Secretary shall offer a borrower of a loan made under this part on or after July 1, 2024, 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 such loans. The borrower may choose—

“(i) a standard repayment plan with a fixed monthly repayment amount paid over a fixed period of time, not to exceed 10 years; or

“(ii) a repayment assistance plan under section 455(e)(9).

“(B) SELECTION BY SECRETARY.—If such borrower does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the repayment plan described in subparagraph (A)(i).

“(C) CHANGES IN SELECTION.—

“(i) IN GENERAL.—Subject to clause (ii), a borrower may change the borrower’s selection of a repayment plan under subparagraph (A), or the Secretary’s selection of a plan for the borrower under subparagraph (B), as the case may be. Nothing in this subsection shall prohibit the Secretary from encouraging distressed borrowers from enrolling in the repayment assistance plan under section 455(e)(9).

“(ii) SAME REPAYMENT PLAN REQUIRED.—All loans made under this part on or after July 1, 2024, to a borrower shall be repaid under the same repayment plan under subparagraph (A), except that the borrower may repay an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 455(e)(9)) separately from other loans made under this part to the borrower.

“(D) REPAYMENT AFTER DEFAULT.—The Secretary may require a borrower who has defaulted on a loan made under this part to—

“(i) pay all reasonable collection costs associated with such loan; and

“(ii) repay the loan pursuant to the repayment assistance plan under section 455(e)(9).

“(E) PROHIBITIONS.—The Secretary may not—

“(i) authorize a borrower of a loan made under this part on or after July 1, 2024, to repay such loan pursuant to a repayment plan that is not described in clause (i) or (ii) of subparagraph (A); or

“(ii) carry out or modify a repayment plan for any loan made under this part on or after July 1, 2024, that is not described in such clause (i) or (ii).”.

(b) Repayment assistance plan.—Section 455(e) of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is amended by adding at the end the following:

“(9) REPAYMENT ASSISTANCE PLAN.—

“(A) IN GENERAL.—Notwithstanding any other provision of this Act, beginning on July 1, 2024, the Secretary shall carry out a repayment assistance program that shall have the terms and conditions of an income-contingent repayment plan described in paragraphs (1) through (8), except that—

“(i) a borrower of any loan made under this part (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower’s aggregate monthly payment for all such loans not exceed the applicable monthly payment for the borrower, except that a borrower may not be precluded from repaying an amount that exceeds such applicable monthly payment for any month;

“(ii) the Secretary shall apply the borrower’s monthly payment under this paragraph first toward interest due on such a loan, next toward any fees due on the loan, and then toward the principal of the loan;

“(iii) any principal due and not paid under clause (ii) shall be deferred;

“(iv) the amount of time the borrower makes monthly payments under clause (i) may exceed 10 years;

“(v) notwithstanding paragraph (7), the Secretary shall repay or cancel any outstanding balance of principal and interest due on all loans made under this part (other than excepted PLUS loans or excepted consolidation loans) to a borrower—

“(I) who, at any time, elected to participate in a repayment assistance plan under clause (i);

“(II) whose final monthly payment for such loans prior to the loan cancellation under this clause was made under such repayment assistance plan; and

“(III) who has repaid on such loans (pursuant to a repayment assistance plan under clause (i), a standard repayment plan under subsection (d)(6)(A)(i), or a combination of any such plan or any of the repayment plans listed in clause (ii), (iii), (iv), or (v) of paragraph (7)(B), or, in the case of a consolidation loan, pursuant to a repayment schedule described item (aa)(BB) of this subclause) an amount that is equal to—

“(aa)(AA) the total amount of principal and interest that the borrower would have repaid under a standard repayment plan under paragraph (1)(A) or (6)(A)(i) of subsection (d), based on a 10-year repayment period, when the borrower entered repayment on such loans; or

“(BB) in the case of a Federal Direct Consolidation Loan, the total amount of principal and interest that the borrower would have repaid under the repayment schedule established for the loan under section 428C(c)(2) on the date on which such loan was made; plus

“(bb) an amount equal to the amount of any unpaid interest that has accrued, but was not included in the calculation of the total amount of principal and interest that would have been repaid under the standard repayment plan or schedule described in item (aa)—

“(AA) during any deferment period described in clause (i) or (ii) of subsection (f)(2)(A); or

“(BB) during any forbearance period while serving in a medical or dental internship or residency program as described in section 428(c)(3)(A)(i)(I); and

“(vi) a borrower who is repaying a loan pursuant to a repayment assistance plan under clause (i) may elect, at any time, to terminate repayment pursuant to such plan and repay such loan under the standard repayment plan under subsection (d)(6)(A)(i).

“(B) REPAYMENT ASSISTANCE FOR DISTRESSED BORROWERS.—

“(i) INTEREST SUBSIDY.—For each month for which a borrower’s aggregate monthly payment under this paragraph is insufficient to pay the total amount of interest that accrues on a loan for the month, the amount of interest accrued and not paid for the month shall be subtracted from the total amount of interest due on such loan for the month.

“(ii) PRINCIPAL SUBSIDY.—For each month for which a borrower’s aggregate monthly payment under this paragraph repays an amount due on an individual loan that is less than twice the total amount of interest that accrues on such loan for the month, the amount of the total principal due on such loan shall be reduced by an amount equal to half of the monthly payment under this paragraph on such loan for the month.

“(C) DEFINITIONS.—In this paragraph:

“(i) ADJUSTED GROSS INCOME.—The term ‘adjusted gross income’ has the meaning given the term in section 62 of the Internal Revenue Code of 1986.

“(ii) APPLICABLE MONTHLY PAYMENT.—The term ‘applicable monthly payment’ means, when used with respect to a borrower, the amount obtained by dividing by 12, 10 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)).

“(iii) EXCEPTED CONSOLIDATION LOAN.—The term ‘excepted Consolidation Loan’ means a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on—

“(I) an excepted PLUS loan; or

“(II) a Federal Direct Consolidation loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan.

“(iv) EXCEPTED PLUS LOAN.—The term ‘excepted PLUS Loan’ has the meaning given the term in section 493C.”.

Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078–6(a)(5)) is amended by striking “one time” and inserting “two times”.

(a) Federal plus loans.—Section 428B(d)(2) of the Higher Education Act of 1965 (20 U.S.C. 1078–2(d)(2)) is amended to read as follows:

“(2) NO CAPITALIZATION OF INTEREST.—Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall be paid monthly or quarterly, if agreed upon by the borrower and the lender.”.

(b) Federal consolidation loans deferrals.—Section 428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (20 U.S.C. 1078–3(b)(4)(C)(III)) is amended by striking “or capitalized,”.

(c) Loan limits for unsubsidized Stafford loans.—Section 428H(d)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078–8(d)(5)) is amended by inserting “before the date of enactment of the College Cost Reduction Act” after “Interest capitalized”.

(d) Unsubsidized Stafford loans for middle income borrowers.—Section 428H(e)(2) of the Higher Education Act of 1965 (20 U.S.C. 1078–8(e)(2)) is amended—

(1) in subparagraph (A), in the matter before clause (i), by striking “, if agreed upon by the borrower and the lender” and all that follows through clause (ii)(IV) and inserting “be paid monthly or quarterly, if agreed upon by the borrower and the lender.”;

(2) by striking subparagraph (B); and

(3) by redesignating subparagraph (C) as subparagraph (B).

(e) Income contingent repayment.—Section 455(e)(5) of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)(5)) is amended by striking the last sentence and inserting “No interest may be capitalized on such loan on or after the date of the enactment of the College Cost Reduction Act, and the Secretary shall promulgate regulations with respect to the treatment of accrued interest that is not capitalized”.

(f) Effect of deferment on principal and interest.—Section 455(f)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)(1)(B)) is amended by striking “capitalized or”.

(g) Income-Based repayment program.—Section 493C(b)(3)(B) of the Higher Education Act of 1965 (20 U.S.C. 1098e(b)(3)(B)) is amended by inserting “shall accrue but not” before “be capitalized”.

(a) Repeal of origination fees.—Subsection (c) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.

(b) Effective date.—The amendment made by subsection (a) shall apply with respect to loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first disbursement of principal is made, or, in the case of a Federal Direct Consolidation Loan, the application is received, on or after July 1, 2024.

Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended—

(1) in subsection (a)—

(A) in paragraph (5), by striking “and” after the semicolon;

(B) by redesignating paragraph (6) as paragraph (7); and

(C) by inserting after paragraph (5) the following new paragraph:

“(6) remit annual risk-sharing payments to the Secretary in accordance with the requirements under subsection (d); and”; and

(2) by adding at the end the following new subsection:

“(d) Risk-Sharing requirements.—

“(1) ANNUAL RISK-SHARING PAYMENTS REQUIRED.—Beginning in award year 2024–2025, each institution of higher education participating in the direct student loan program under this part shall, for qualifying student loans, remit to the Secretary, at such time as the Secretary may specify, an annual risk-sharing payment for each student cohort of the institution, based on the non-repayment balance of such cohort and calculated in accordance with paragraph (3).

“(2) STUDENT COHORTS.—

“(A) COHORTS ESTABLISHED.—For each institution of higher education, the Secretary shall establish student cohorts, beginning with award year 2023–2024, as follows:

“(i) COMPLETING STUDENT COHORT.—For each program of study at such institution, a student cohort comprised of all students who received Federal financial assistance under this title and who completed such program during such award year.

“(ii) UNDERGRADUATE NON-COMPLETING STUDENT COHORT.—For such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in the institution during the previous award year in a program of study leading to an undergraduate credential, and who at the time the cohort is established—

“(I) have not completed such program of study; and

“(II) are not enrolled at the institution in any program of study leading to an undergraduate credential.

“(iii) GRADUATE NON-COMPLETING STUDENT COHORT.—For each program of study leading to a graduate credential at such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in such program during the previous award year, and who at the time the cohort is established—

“(I) have not completed such program of study; and

“(II) are not enrolled in such program.

“(B) QUALIFYING STUDENT LOAN.—For the purposes of this subsection, the term ‘qualifying student loan’ means a Federal Direct loan, including a Federal Direct Consolidation loan, made under this part that—

“(i) was made to a student included in a student cohort of an institution; and

“(ii) except in the case of a loan described in clause (i) or (ii) of subparagraph (C), is not included in any other student cohort of any institution of higher education.

“(C) SPECIAL CIRCUMSTANCES.—

“(i) MULTIPLE CREDENTIALS.—In the case of a student who completes two or more programs of study during the same award year, each qualifying student loan of the student shall be included in the student cohort for each of such program of study for such award year.

“(ii) TREATMENT OF CERTAIN CONSOLIDATION LOANS.—A Federal Direct Consolidation loan made under this title shall not be considered a qualifying student loan for a student cohort for an award year if all of the loans included in such consolidation loan are attributable to another student cohort.

“(iii) CONSOLIDATION AFTER INCLUSION IN A STUDENT COHORT.—If a qualifying student loan is consolidated into a consolidation loan under this title after such qualifying student loan has been included in a student cohort, the percentage of the consolidation loan that was attributable to such student cohort at the time of consolidation shall remain attributable to the student cohort for the life of the consolidation loan.

“(3) CALCULATION OF RISK-SHARING PAYMENTS.—

“(A) RISK-SHARING PAYMENT FORMULA.—For each student cohort of an institution of higher education established under this subsection, the annual risk-sharing payment for such cohort shall be equal to—

“(i) the risk-sharing percentage determined for the cohort in accordance with subparagraph (B); multiplied by

“(ii) the non-repayment balance for the cohort for the award year, determined in accordance with subparagraph (C).

“(B) RISK-SHARING PERCENTAGE.—The risk-sharing percentage of a student cohort of an institution shall be determined by the Secretary when the cohort is established, shall remain constant for the life of the student cohort, and shall be determined as follows:

“(i) COMPLETING STUDENT COHORTS.—The risk-sharing percentage of a completing student cohort shall be equal to the percentage determined by—

“(I) subtracting from one the quotient of—

“(aa) the median value-added earnings (as defined in section 103) of students who completed such program of study in the most recent award year for which data is available, as reported on the College Scorecard at the time the cohort was established; divided by

“(bb) the median total price charged to students included in such cohort; and

“(II) multiplying the difference determined under subclause (I) by 100.

“(ii) SPECIAL CIRCUMSTANCES FOR COMPLETING STUDENT COHORTS.—

“(I) HIGH-RISK COHORTS.—Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) is negative, the risk-sharing percentage of the student cohort shall be 100 percent.

“(II) LOW-RISK COHORTS.—Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) exceeds the median total price of such cohort under clause (i)(I)(bb), the risk-sharing percentage of the student cohort shall be 0 percent.

“(iii) NON-COMPLETING STUDENT COHORTS.—The risk-sharing percentage of a non-completing student cohort shall be determined based on the most recent data available in the award year in which the cohort is established, and—

“(I) for an undergraduate non-completing student cohort, shall be equal to the percentage of undergraduate students who received Federal financial assistance under this title at such institution who—

“(aa) did not complete an undergraduate program of study at the institution within 150 percent of the program length of such program; or

“(bb) only in the case of a two-year institution, did not, within 6 years after first enrolling at the two-year institution, complete a program of study at a four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; and

“(II) for a graduate non-completing student cohort, shall be equal to the percentage of students who received Federal financial assistance under this title at the institution for the applicable graduate program of study and who did not complete such program of study within 150 percent of the program length.

“(C) NON-REPAYMENT LOAN BALANCE.—

“(i) IN GENERAL.—For each award year, the Secretary shall determine the non-repayment loan balance for such award year for each student cohort of an institution of higher education by calculating the sum of—

“(I) for loans in such cohort in repayment status that are being repaid under a standard 10-year repayment plan under section 455(d)(1), the difference between the total amount of payments due from all borrowers on such loans during such year, as required under section 455(d)(1)(A), and the total amount of payments made by all such borrowers on such loans during such year; plus

“(II) for loans in such cohort in repayment status that are being repaid under the repayment assistance plan under section 455(e)(9)—

“(aa) the difference between the total amount of payments due from all borrowers on such loans during such year, as required under section 455(e)(9), and the total amount of payments made by all such borrowers on such loans during such year; plus

“(bb) the total amount of repayment assistance for such loans under such section 455(e)(9) during such year, including the unpaid principal reduced, and interest subtracted, by the Secretary.

“(ii) SPECIAL CIRCUMSTANCES.—For the purpose of calculating the non-repayment loan balance of student cohorts under this paragraph, the Secretary shall—

“(I) for each qualifying student loan in a student cohort that is included in another student cohort because the student who borrowed such loan completed two or more programs of study during the same award year, the total amount of repayment assistance and amounts due but not paid for such qualifying student loan shall be divided equally among each of the student cohorts in which such loan is included; and

“(II) for each consolidation loan in a student cohort—

“(aa) determine the percentage of the outstanding principal balance of the consolidation loan attributable to such student cohort—

“(AA) at the time of that loan was included in such cohort, in the case of a loan consolidated before inclusion in such cohort; or

“(BB) at the time of consolidation, in the case of a loan consolidated after inclusion in such cohort; and

“(bb) include in the calculations under clause (i) for such student cohort only the percentage of the total amount of repayment assistance and amounts due but not paid for the consolidation loan for such year that is equal to the percentage of the consolidation loan determined under item (aa).

“(D) TOTAL PRICE.—With respect to a student who received Federal financial assistance under this title and who completes a program of study, the term ‘total price’ means the total amount, before Federal financial assistance under this title was applied, a student was required to pay to complete the program of study. A student’s total price shall be calculated by the Secretary as the difference between—

“(i) the total amount of tuition and fees (including the required costs described in section 484(b)(3)(A)(i)(I)) that were charged to such student before the application of any Federal financial assistance provided under this title; minus

“(ii) the total amount of grants and scholarships described in section 480(i)awarded to such student from non-Federal sources for such program of study.

“(4) NOTIFICATION AND REMITTANCE.—Beginning with the first award year for which risk-sharing payments are required under this subsection, and for each succeeding award year, the Secretary shall—

“(A) notify each institution of higher education of the amounts and due dates of each annual risk-sharing payment calculated under paragraph (3) for each student cohort of the institution within 30 days of calculating such amounts; and

“(B) require the institution to remit such payments within 90 days of such notification.

“(5) PENALTY FOR LATE PAYMENTS.—

“(A) THREE-MONTH DELINQUENCY.—If an institution fails to remit to the Secretary a risk-sharing payment for a student cohort as required under this subsection within 90 days of receiving notification from the Secretary in accordance with paragraph (4), the institution shall pay to the Secretary, in addition to such risk-sharing payment, interest on such payment, at a rate that is the average rate applicable to the loans in such student cohort.

“(B) TWELVE-MONTH DELINQUENCY.—If an institution fails to remit to the Secretary a risk-sharing payment for a student cohort as required under this subsection, plus interest owed in under subparagraph (A), within 12 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans to any student enrolled in the program of study for which the institution has failed to make the risk-sharing payments until such payment is made.

“(C) EIGHTEEN-MONTH DELINQUENCY.—If an institution fails to remit to the Secretary a risk-sharing payment for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 18 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans or award Federal Pell grants under section 401 to any student enrolled in the institution until such payment is made.

“(D) TWO-YEAR DELINQUENCY.—If an institution fails to remit to the Secretary a risk-sharing payment for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 2 years of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to participate in any program under this title for a period of not less than 10 years.

“(6) RELIEF FOR VOLUNTARY CESSATION OF FEDERAL DIRECT LOANS FOR A PROGRAM OF STUDY.—The Secretary shall, upon the request of an institution that voluntarily ceases to make Federal direct loans to students enrolled in a specific program of study, reduce the amount of the annual risk-sharing payment owed by the institution for each student cohort associated with such program by 50 percent if the institution assures the Secretary that the institution will not make Federal direct loans to any student enrolled in such program of study (or any substantially similar program of study) for a period of not less than 10 award years, beginning with the first award year that begins after the date on which the Secretary reduces such risk-sharing payment.

“(7) RESERVATION OF FUNDS FOR PROMISE GRANTS.—Notwithstanding any other provision of law, the Secretary shall reserve the funds remitted to the Secretary as risk-sharing payments in accordance with this subsection, and such funds shall be made available to the Secretary only for the purpose of awarding PROMISE grants in accordance with subpart 4 of part A of this title.”.

(a) 90/10.—

(1) REGULATION REPEALED.—Section 668.28 of title 34, Code of Federal Regulations (relating to the 90/10 rule), as added or amended by the final regulations published by the Department of Education in the Federal Register on October 28, 2022 (87 Fed. Reg. 65426 et seq.), is repealed and will have no force or effect.

(2) AMENDMENTS.—Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094) is amended—

(A) in subsection (a), by striking paragraph (24);

(B) by striking subsection (d); and

(C) by redesignating subsections (e) through (j) as subsections (d) through (i), respectively.

(b) Financial value transparency and gainful employment.—

(1) REGULATION REPEALED.—Sections 600.10, 600.21, 668.2, 668.13, 668.43, 668.91, 668.402 through 668.409 (excluding section 668.408), and 668.601 through 668.606 of title 34, Code of Federal Regulations (relating to financial value transparency and gainful employment), as added or amended by the final regulations published by the Department of Education in the Federal Register on October 10, 2023 (88 FR 70004 et seq.), are repealed and will have no force or effect.

(2) PROHIBITION.—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.).

(c) Changes in ownership.—

(1) REGULATION REPEALED.—Sections 600.2, 600.4, 600.20, 600.21, and 600.31 of title 34, Code of Federal Regulations (relating to changes in ownership), as added or amended by the final regulations published by the Department of Education in the Federal Register on October 28, 2022 (87 Fed. Reg. 65426 et seq.), are repealed and will have no force or effect.

(2) AMENDMENTS.—Section 498(i) of the Higher Education Act of 1965 (20 U.S.C. 1099c(i)) is amended—

(A) in the subsection heading, by inserting “and Proposed Changes of Ownership” after “Ownership”;

(B) in paragraph (1)—

(i) by striking “(1) An eligible institution”, and inserting the following: “(1)(A) An eligible institution”;

(ii) by striking “the requirements of section 102 (other than the requirements in subsections (b)(5) and (c)(3))” and inserting “the applicable requirements of section 102 or 103(13)”; and

(iii) by adding at the end the following:

“(B) (i) Prior to a change in ownership resulting in a change of control, an institution may seek a pretransaction determination about whether the institution will meet the applicable requirements of section 102 or 103(13) and this section after such proposed change in ownership by submitting to the Secretary a materially complete pretransaction review application.

“(ii) In reviewing applications submitted under clause (i), the Secretary shall only provide a comprehensive review of each such application, and may not provide an abbreviated or partial review.

“(iii) If an institution submits a materially complete pretransaction review application at least 90 days prior to the transaction and the Secretary approves the application, the subsequent change in ownership application shall also be approved and the institution shall be certified as meeting the requirements for such transaction, provided that the institution—

“(I) complies with the applicable terms of this section; and

“(II) the transaction resulting in a change of control does not differ materially in its terms from the transaction proposed in the pretransaction review application.”;

(C) in paragraph (2)—

(i) in subparagraph (E), by striking “or” at the end;

(ii) in subparagraph (F), by striking the period at the end and inserting “; or”; and

(iii) by adding the following at the end:

“(G) in the case of a proprietary institution of higher education, a conversion to a public or other nonprofit institution of higher education.”;

(D) by adding at the end the following:

“(5) (A) Subject to subparagraph (B), when any institution submits an application for a change in ownership resulting in a change in control under this section or submits a pretransaction review application under paragraph (1)(B) (other than in the case of a conversion transaction), the institution shall be required to pay to the Secretary an administrative fee that shall—

“(i) be in an amount equal to 0.15 percent of the total institutional revenue derived from this title by such institution for the most fiscal year for which data is available; and

“(ii) be used exclusively for expenses related to the processing of such application, and be available to the Secretary without further appropriation, exclusively for expenses related to the processing of such approval or application.

“(B) In the case of a proprietary institution submitting an application for conversion, or a pretransaction review application for conversion, the institution shall be required to pay to the Secretary an administrative fee that shall—

“(i) be in an amount equal to 0.30 percent of the total institutional revenue derived from this title by such institution for the most fiscal year for which data is available; and

“(ii) be used exclusively for expenses related to the processing of such application, and of which—

“(I) 50 percent shall be available to the Secretary without further appropriation, exclusively for expenses related to the processing of such application; and

“(II) 50 percent shall be remitted by the Secretary to the Commissioner of the Internal Revenue, and shall be available, without further appropriation, to the Commissioner of Internal Revenue exclusively for purposes of determining whether the institution seeking such conversion or pretransaction review is an institution exempt from tax and is otherwise in compliance with applicable requirements of the Internal Revenue Code of 1986.

“(C) An institution that pays a fee under subparagraph (A) or (B) for a pretransaction application with respect to a proposed transaction shall not be required to pay another fee under such subparagraph for a change in ownership application with respect to such transaction.

“(D) In no case may any fee remitted under subparagraph (A) or (B) exceed $120,000 for any transaction (or pretransaction) application, nor may the Secretary require an institution that has paid a fee under subparagraph (B) to pay an additional fee under subparagraph (A).

“(6) (A) The Secretary shall approve or deny a materially complete application (including pretransaction reviews and conversion applications) submitted under this section as soon as practicable and not later than the 90-day period beginning on the date of receipt of such an application, except that in a case in which the Secretary determines, on a nondelegable basis, that good cause exists to not make the determination during such 90-day period, the Secretary shall notify the institution in writing detailing the reasons for a good cause extension.

“(B) If the Secretary fails to approve or deny a materially complete application during the period described in subparagraph (A) and does not find good cause for extension, the materially complete application shall be deemed approved.

“(C) In no case may the Secretary grant a good cause extension under this section to an institution for more than one month at a time, or for a total of more than more than 12 months.

“(D) To ensure timely submission of all relevant documentation, the Secretary may deny an application if an institution does not make a good faith effort to submit to the Secretary, in a timely manner—

“(i) all relevant documentation; or

“(ii) a materially complete application.

“(E) (i) Upon approving or denying an application under this paragraph, the Secretary shall publish in the Federal Register the reasoning for such approval or denial, including—

“(I) a copy of the approval or denial letter sent to the institution; and

“(II) any analysis regarding how the Secretary determined under paragraph 7(A)(iii) that a director of the institution was an interested or disinterested party to the transaction.

“(ii) The Secretary shall not publish under clause (i) any information that is otherwise exempt from disclosure under section 552 of title 5, United States Code (relating to the Freedom of Information Act), including trade secrets and commercial or financial information that is privileged or confidential.

“(7) (A) In the case of a proprietary institution that subsequent to the transaction would be owned and operated by an entity (in this paragraph referred to as the ‘buyer’) seeking to be recognized as a public or other nonprofit institution, the buyer shall meet the definition of a nonprofit institution under section 103(13) if—

“(i) the buyer pays no more than fair market value for any assets of the proprietary institution;

“(ii) the buyer pays no more than fair market value for any service or lease contracts, including such service and lease contracts provided by the entity selling the proprietary institution; and

“(iii) to prevent self-dealing in the case where one or more individuals with a substantial ownership or controlling interests in the proprietary institution will also have substantial or controlling interests in the institution seeking to be recognized as a public or other nonprofit institution (meaning that one or more individuals are on both sides of the transaction), the change of control transaction, and any substantial asset acquisition, service, or lease agreements with the proprietary institution shall be approved by a disinterested committee of directors of the entity that seeks to be recognized as a public or other nonprofit institution.

“(B) For the purposes of this paragraph, parties to the transaction are entitled to a rebuttable presumption that the assets, lease contracts, and service contracts that are part of the transaction are purchased at fair market value if—

“(i) the acquiring entity pays no more than fair market value for such assets, lease contracts, or service contracts; and

“(ii) the value of the assets, lease contracts, or service contracts are evaluated by at least one independent third-party entity hired by parties on both sides of the transaction.

“(8) (A) An institution that has been approved for conversion by the Secretary shall be subject to a monitoring period for a 5-year period beginning on the day after the date of such approval. In conducting the monitoring of the institution under this paragraph, the Secretary—

“(i) shall only conduct monitoring to ensure that the institution is in compliance with the requirements of section 103(13) and paragraph (7) of this subsection; and

Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section 492 the following: