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[House Report 114-675]
[From the U.S. Government Publishing Office]

114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      114-675

======================================================================

 
     EMPOWERING STUDENTS THROUGH ENHANCED FINANCIAL COUNSELING ACT

                                _______
                                

 July 11, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Kline, from the Committee on Education and the Workforce, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 3179]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 3179) to amend the loan counseling 
requirements under the Higher Education Act of 1965, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Empowering Students Through Enhanced 
Financial Counseling Act''.

SEC. 2. ANNUAL COUNSELING.

  Section 485(l) of the Higher Education Act of 1965 (20 U.S.C. 
1092(l)) is amended to read as follows:
  ``(l) Annual Financial Aid Counseling.--
          ``(1) Annual disclosure required.--
                  ``(A) In general.--Each eligible institution shall 
                ensure that each individual who receives a Federal Pell 
                Grant or a loan made under part D (other than a Federal 
                Direct Consolidation Loan) receives comprehensive 
                information on the terms and conditions of such Federal 
                Pell Grant or loan and the responsibilities the 
                individual has with respect to such Federal Pell Grant 
                or loan. Such information shall be provided, for each 
                award year for which the individual receives such 
                Federal Pell Grant or loan, in a simple and 
                understandable manner--
                          ``(i) during a counseling session conducted 
                        in person;
                          ``(ii) online, with the individual 
                        acknowledging receipt of the information; or
                          ``(iii) through the use of the online 
                        counseling tool described in subsection 
                        (n)(1)(B).
                  ``(B) Use of interactive programs.--In the case of 
                institutions not using the online counseling tool 
                described in subsection (n)(1)(B), the Secretary shall 
                require such institutions to carry out the requirements 
                of subparagraph (A) through the use of interactive 
                programs, during an annual counseling session that is 
                in-person or online, that test the individual's 
                understanding of the terms and conditions of the 
                Federal Pell Grant or loan awarded to the individual, 
                using simple and understandable language and clear 
                formatting.
          ``(2) All individuals.--The information to be provided under 
        paragraph (1)(A) to each individual receiving counseling under 
        this subsection shall include the following:
                  ``(A) An explanation of how the individual may budget 
                for typical educational expenses and a sample budget 
                based on the cost of attendance for the institution.
                  ``(B) An explanation that an individual has a right 
                to annually request a disclosure of information 
                collected by a consumer reporting agency pursuant to 
                section 612(a) of the Fair Credit Reporting Act (15 
                U.S.C. 1681j(a)).
                  ``(C) Based on the most recent data available from 
                the American Community Survey available from the 
                Department of Commerce, the estimated average income 
                and percentage of employment in the State of domicile 
                of the individual for individuals with--
                          ``(i) a high school diploma or equivalent;
                          ``(ii) some post-secondary education without 
                        completion of a degree or certificate; and
                          ``(iii) a bachelor's degree.
                  ``(D) An introduction to the financial management 
                resources provided by the Financial Literacy and 
                Education Commission.
          ``(3) Students receiving federal pell grants.--The 
        information to be provided under paragraph (1)(A) to each 
        student receiving a Federal Pell Grant shall include the 
        following:
                  ``(A) An explanation of the terms and conditions of 
                the Federal Pell Grant.
                  ``(B) An explanation of approved educational expenses 
                for which the student may use the Federal Pell Grant.
                  ``(C) An explanation of why the student may have to 
                repay the Federal Pell Grant.
                  ``(D) An explanation of the maximum number of 
                semesters or equivalent for which the student may be 
                eligible to receive a Federal Pell Grant, and a 
                statement of the amount of time remaining for which the 
                student may be eligible to receive a Federal Pell 
                Grant.
                  ``(E) An explanation that if the student transfers to 
                another institution not all of the student's courses 
                may be acceptable in transfer toward meeting specific 
                degree or program requirements at such institution, but 
                the amount of time remaining for which a student may be 
                eligible to receive a Federal Pell Grant, as provided 
                under subparagraph (D), will not change.
                  ``(F) An explanation of how the student may seek 
                additional financial assistance from the institution's 
                financial aid office due to a change in the student's 
                financial circumstances, and the contact information 
                for such office.
          ``(4) Borrowers receiving loans made under part d (other than 
        parent plus loans).--The information to be provided under 
        paragraph (1)(A) to a borrower of a loan made under part D 
        (other than a Federal Direct PLUS Loan made on behalf of a 
        dependent student) shall include the following:
                  ``(A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the eligibility 
                of the borrower for other forms of student financial 
                assistance.
                  ``(B) An explanation of the use of the master 
                promissory note.
                  ``(C) An explanation that the borrower is not 
                required to accept the full amount of the loan offered 
                to the borrower.
                  ``(D) An explanation that the borrower should 
                consider accepting any grant, scholarship, or State or 
                Federal work-study jobs for which the borrower is 
                eligible prior to accepting Federal student loans.
                  ``(E) A recommendation to the borrower to exhaust the 
                borrower's Federal student loan options prior to taking 
                out private education loans, an explanation that 
                Federal student loans typically offer better terms and 
                conditions than private education loans, an explanation 
                of treatment of loans made under part D and private 
                education loans in bankruptcy, and an explanation that 
                if a borrower decides to take out a private education 
                loan--
                          ``(i) the borrower has the ability to select 
                        a private educational lender of the borrower's 
                        choice;
                          ``(ii) the proposed private education loan 
                        may impact the borrower's potential eligibility 
                        for other financial assistance, including 
                        Federal financial assistance under this title; 
                        and
                          ``(iii) the borrower has a right--
                                  ``(I) to accept the terms of the 
                                private education loan within 30 
                                calendar days following the date on 
                                which the application for such loan is 
                                approved and the borrower receives the 
                                required disclosure documents, pursuant 
                                to section 128(e) of the Truth in 
                                Lending Act (15 U.S.C. 1638(e)); and
                                  ``(II) to cancel such loan within 3 
                                business days of the date on which the 
                                loan is consummated, pursuant to 
                                section 128(e)(7) of such Act (15 
                                U.S.C. 1638(e)(7)).
                  ``(F) An explanation of the approved educational 
                expenses for which the borrower may use a loan made 
                under part D.
                  ``(G) Information on the annual and aggregate loan 
                limits for Federal Direct Stafford Loans and Federal 
                Direct Unsubsidized Stafford Loans.
                  ``(H) Information on how interest accrues and is 
                capitalized during periods when the interest is not 
                paid by either the borrower or the Secretary.
                  ``(I) In the case of a Federal Direct PLUS Loan or a 
                Federal Direct Unsubsidized Stafford Loan, the option 
                of the borrower to pay the interest while the borrower 
                is in school.
                  ``(J) The definition of half-time enrollment at the 
                institution, during regular terms and summer school, if 
                applicable, and the consequences of not maintaining at 
                least half-time enrollment.
                  ``(K) An explanation of the importance of contacting 
                the appropriate offices at the institution of higher 
                education if the borrower withdraws prior to completing 
                the borrower's program of study so that the institution 
                can provide exit counseling, including information 
                regarding the borrower's repayment options and loan 
                consolidation.
                  ``(L) For a first-time borrower--
                          ``(i) a statement of the anticipated balance 
                        on the loan for which the borrower is receiving 
                        counseling under this subsection;
                          ``(ii) based on such anticipated balance, the 
                        anticipated monthly payment amount under, at 
                        minimum--
                                  ``(I) the standard repayment plan; 
                                and
                                  ``(II) an income-based repayment plan 
                                under section 493C, as determined using 
                                regionally available data from the 
                                Bureau of Labor Statistics of the 
                                average starting salary for the 
                                occupation in which the borrower has an 
                                interest in or intends to be employed; 
                                and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under each repayment plan 
                        described in clause (ii), based on the average 
                        cumulative indebtedness at graduation for 
                        borrowers of loans made under part D who are in 
                        the same program of study as the borrower.
                  ``(M) For a borrower with an outstanding balance of 
                principal or interest due on a loan made under this 
                title--
                          ``(i) a current statement of the amount of 
                        such outstanding balance and interest accrued;
                          ``(ii) based on such outstanding balance, the 
                        anticipated monthly payment amount under, at 
                        minimum, the standard repayment plan and, using 
                        regionally available data from the Bureau of 
                        Labor Statistics of the average starting salary 
                        for the occupation the borrower intends to be 
                        employed, an income-based repayment plan under 
                        section 493C; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under each repayment plan 
                        described in clause (ii), based on--
                                  ``(I) the outstanding balance 
                                described in clause (i);
                                  ``(II) the anticipated outstanding 
                                balance on the loan for which the 
                                student is receiving counseling under 
                                this subsection; and
                                  ``(III) a projection for any other 
                                loans made under part D that the 
                                borrower is reasonably expected to 
                                accept during the borrower's program of 
                                study based on at least the expected 
                                increase in the cost of attendance of 
                                such program.
                  ``(N) The obligation of the borrower to repay the 
                full amount of the loan, regardless of whether the 
                borrower completes or does not complete the program in 
                which the borrower is enrolled within the regular time 
                for program completion.
                  ``(O) The likely consequences of default on the loan, 
                including adverse credit reports, delinquent debt 
                collection procedures under Federal law, and 
                litigation, and a notice of the institution's most 
                recent cohort default rate (defined in section 435(m)), 
                an explanation of the cohort default rate, the most 
                recent national average cohort default rate, and the 
                most recent national average cohort default rate for 
                the category of institution described in section 
                435(m)(4) to which the institution belongs.
                  ``(P) Information on the National Student Loan Data 
                System and how the borrower can access the borrower's 
                records.
                  ``(Q) The contact information for the institution's 
                financial aid office or other appropriate office at the 
                institution the borrower may contact if the borrower 
                has any questions about the borrower's rights and 
                responsibilities or the terms and conditions of the 
                loan.
          ``(5) Borrowers receiving parent plus loans for dependent 
        students.--The information to be provided under paragraph 
        (1)(A) to a borrower of a Federal Direct PLUS Loan made on 
        behalf of a dependent student shall include the following:
                  ``(A) The information described in subparagraphs (A) 
                through (C) and (N) through (Q) of paragraph (4).
                  ``(B) The option of the borrower to pay the interest 
                on the loan while the loan is in deferment.
                  ``(C) For a first-time borrower of such loan--
                          ``(i) a statement of the anticipated balance 
                        on the loan for which the borrower is receiving 
                        counseling under this subsection;
                          ``(ii) based on such anticipated balance, the 
                        anticipated monthly payment amount under the 
                        standard repayment plan; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under the standard repayment 
                        plan, based on the average cumulative 
                        indebtedness of other borrowers of Federal 
                        Direct PLUS Loans made on behalf of dependent 
                        students who are in the same program of study 
                        as the student on whose behalf the borrower 
                        borrowed the loan.
                  ``(D) For a borrower with an outstanding balance of 
                principal or interest due on such loan--
                          ``(i) a statement of the amount of such 
                        outstanding balance;
                          ``(ii) based on such outstanding balance, the 
                        anticipated monthly payment amount under the 
                        standard repayment plan; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under the standard repayment 
                        plan, based on--
                                  ``(I) the outstanding balance 
                                described in clause (i);
                                  ``(II) the anticipated outstanding 
                                balance on the loan for which the 
                                borrower is receiving counseling under 
                                this subsection; and
                                  ``(III) a projection for any other 
                                Federal Direct PLUS Loan made on behalf 
                                of the dependent student that the 
                                borrower is reasonably expected to 
                                accept during the program of study of 
                                such student based on at least the 
                                expected increase in the cost of 
                                attendance of such program.
                  ``(E) Debt management strategies that are designed to 
                facilitate the repayment of such indebtedness.
                  ``(F) An explanation that the borrower has the 
                options to prepay each loan, pay each loan on a shorter 
                schedule, and change repayment plans.
                  ``(G) For each Federal Direct PLUS Loan made on 
                behalf of a dependent student for which the borrower is 
                receiving counseling under this subsection, the contact 
                information for the loan servicer of the loan and a 
                link to such servicer's Website.
          ``(6) Annual loan acceptance.--Prior to making the first 
        disbursement of a loan made under part D (other than a Federal 
        Direct Consolidation Loan) to a borrower for an award year, an 
        eligible institution, shall, as part of carrying out the 
        counseling requirements of this subsection for the loan, ensure 
        that after receiving the applicable counseling under paragraphs 
        (2), (4), and (5) for the loan the borrower accepts the loan 
        for such award year by--
                  ``(A) signing the master promissory note for the 
                loan;
                  ``(B) signing and returning to the institution a 
                separate written statement that affirmatively states 
                that the borrower accepts the loan; or
                  ``(C) electronically signing an electronic version of 
                the statement described in subparagraph (B).''.

SEC. 3. EXIT COUNSELING.

  Section 485(b) of the Higher Education Act of 1965 (20 U.S.C. 
1092(b)) is amended--
          (1) in paragraph (1)(A)--
                  (A) in the matter preceding clause (i), by striking 
                ``through financial aid offices or otherwise'' and 
                inserting ``through the use of an interactive program, 
                during an exit counseling session that is in-person or 
                online, or through the use of the online counseling 
                tool described in subsection (n)(1)(A)'';
                  (B) by redesignating clauses (i) through (ix) as 
                clauses (iv) through (xii), respectively;
                  (C) by inserting before clause (iv), as so 
                redesignated, the following:
          ``(i) a summary of the outstanding balance of principal and 
        interest due on the loans made to the borrower under part B, D, 
        or E;
          ``(ii) an explanation of the grace period preceding repayment 
        and the expected date that the borrower will enter repayment;
          ``(iii) an explanation that the borrower has the option to 
        pay any interest that has accrued while the borrower was in 
        school or that may accrue during the grace period preceding 
        repayment or during an authorized period of deferment or 
        forbearance, prior to the capitalization of the interest;'';
                  (D) in clause (iv), as so redesignated--
                          (i) by striking ``sample information showing 
                        the average'' and inserting ``information, 
                        based on the borrower's outstanding balance 
                        described in clause (i), showing the 
                        borrower's''; and
                          (ii) by striking ``of each plan'' and 
                        inserting ``of at least the standard repayment 
                        plan and the income-based repayment plan under 
                        section 493C'';
                  (E) in clause (ix), as so redesignated--
                          (i) by inserting ``decreased credit score,'' 
                        after ``credit reports,''; and
                          (ii) by inserting ``reduced ability to rent 
                        or purchase a home or car, potential difficulty 
                        in securing employment,'' after ``Federal 
                        law,'';
                  (F) in clause (x), as so redesignated, by striking 
                ``consolidation loan under section 428C or a'';
                  (G) in clauses (xi) and (xii), as so redesignated, by 
                striking ``and'' at the end; and
                  (H) by adding at the end the following:
          ``(xiii) for each of the borrower's loans made under part B, 
        D, or E for which the borrower is receiving counseling under 
        this subsection, the contact information for the loan servicer 
        of the loan and a link to such servicer's Website; and
          ``(xiv) an explanation that an individual has a right to 
        annually request a disclosure of information collected by a 
        consumer reporting agency pursuant to section 612(a) of the 
        Fair Credit Reporting Act (15 U.S.C. 1681j(a)).'';
          (2) in paragraph (1)(B)--
                  (A) by inserting ``online or'' before ``in writing''; 
                and
                  (B) by adding before the period at the end the 
                following: ``, except that in the case of an 
                institution using the online counseling tool described 
                in subsection (n)(1)(A), the Secretary shall attempt to 
                provide such information to the student in the manner 
                described in subsection (n)(3)(C)''; and
          (3) in paragraph (2)(C), by inserting ``, such as the online 
        counseling tool described in subsection (n)(1)(A),'' after 
        ``electronic means''.

SEC. 4. ONLINE COUNSELING TOOLS.

  Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is 
further amended by adding at the end the following:
  ``(n) Online Counseling Tools.--
          ``(1) In general.--Beginning not later than 1 year after the 
        date of enactment of the Empowering Students Through Enhanced 
        Financial Counseling Act, the Secretary shall maintain--
                  ``(A) an online counseling tool that provides the 
                exit counseling required under subsection (b) and meets 
                the applicable requirements of this subsection; and
                  ``(B) an online counseling tool that provides the 
                annual counseling required under subsection (l) and 
                meets the applicable requirements of this subsection.
          ``(2) Requirements of tools.--In maintaining the online 
        counseling tools described in paragraph (1), the Secretary 
        shall ensure that each such tool is--
                  ``(A) consumer tested, in consultation with other 
                relevant Federal agencies, to ensure that the tool is 
                effective in helping individuals understand their 
                rights and obligations with respect to borrowing a loan 
                made under part D or receiving a Federal Pell Grant;
                  ``(B) understandable to students receiving Federal 
                Pell Grants and borrowers of loans made under part D; 
                and
                  ``(C) freely available to all eligible institutions.
          ``(3) Record of counseling completion.--The Secretary shall--
                  ``(A) use each online counseling tool described in 
                paragraph (1) to keep a record of which individuals 
                have received counseling using the tool, and notify the 
                applicable institutions of the individual's completion 
                of such counseling;
                  ``(B) in the case of a borrower who receives annual 
                counseling for a loan made under part D using the tool 
                described in paragraph (1)(B), notify the borrower by 
                when the borrower should accept, in a manner described 
                in subsection (l)(6), the loan for which the borrower 
                has received such counseling; and
                  ``(C) in the case of a borrower described in 
                subsection (b)(1)(B) at an institution that uses the 
                online counseling tool described in paragraph (1)(A) of 
                this subsection, the Secretary shall attempt to provide 
                the information described in subsection (b)(1)(A) to 
                the borrower through such tool.''.

SEC. 5. LONGITUDINAL STUDY ON THE EFFECTIVENESS OF STUDENT LOAN 
                    COUNSELING.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Education, acting through the Director of 
the Institute of Education Sciences, shall begin conducting a rigorous, 
longitudinal study of the impact and effectiveness of the student loan 
counseling--
          (1) provided under subsections (b), (l), and (n) of section 
        485 of the Higher Education Act of 1965 (20 U.S.C. 1092), as 
        amended by this Act; and
          (2) provided through such other means as the Secretary of 
        Education may determine.
  (b) Contents.--
          (1) Borrower information.--The longitudinal study carried out 
        under subsection (a) shall include borrower information, in the 
        aggregate and disaggregated by race, ethnicity, gender, income, 
        and status as an individual with a disability, on--
                  (A) student persistence;
                  (B) degree attainment;
                  (C) program completion;
                  (D) successful entry into student loan repayment;
                  (E) cumulative borrowing levels; and
                  (F) such other factors as the Secretary of Education 
                may determine.
          (2) Exception.--The disaggregation under paragraph (1) shall 
        not be required in a case in which the number of borrowers in a 
        category is insufficient to yield statistically reliable 
        information or the results would reveal personally identifiable 
        information about an individual borrower.
  (c) Interim Reports.--Not later than 18 months after the commencement 
of the study under subsection (a), and annually thereafter, the 
Secretary of Education shall evaluate the progress of the study and 
report any short-term findings to the appropriate committees of 
Congress.

SEC. 6. AVAILABILITY OF FUNDS.

  (a) Use of Existing Funds.--Of the amount authorized to be 
appropriated for maintaining the Department of Education's Financial 
Awareness Counseling Tool, $2,000,000 shall be available to carry out 
this Act and the amendments made by this Act.
  (b) No Additional Funds Authorized.--No funds are authorized to be 
appropriated by this Act to carry out this Act or the amendments made 
by this Act.

                                Purpose

    H.R. 3179, the Empowering Students through Enhanced 
Financial Counseling Act, promotes financial literacy through 
enhanced counseling for recipients of federal financial aid.

                            Committee Action

    As the Committee on Education and the Workforce (Committee) 
continues the Higher Education Act reauthorization process, 
increasing transparency and usefulness of higher education 
data; simplifying and improving the federal student aid 
programs; and promoting innovation, access, and completion 
remain top priorities.

                             112TH CONGRESS

Hearings--First session

    On March 1, 2011, the Committee held a hearing in 
Washington, D.C., on ``Education Regulations: Weighing the 
Burden on Schools and Students.'' The hearing was the first in 
a series examining the burden of federal, state, and local 
regulations on the nation's education system. The purpose of 
the hearing was to uncover the damaging effects of federal 
regulations on schools and institutions. These rules 
increasingly stifle growth and innovation, raise operating 
costs, and limit student access to affordable colleges and 
universities throughout the nation. Testifying before the 
Committee were Dr. Edgar Hatrick, Superintendent, Loudon County 
Public Schools, Ashburn, Virginia; Ms. Kati Haycock, President, 
The Education Trust, Washington, D.C.; Mr. Gene Wilhoit, 
Executive Director, Council of Chief State School Officers, 
Washington, D.C.; and Mr. Christopher B. Nelson, President, St. 
John's College, Annapolis, Maryland.
    On March 11, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Education 
Regulations: Federal Overreach into Academic Affairs.'' The 
purpose of the hearing was to discuss the most egregious and 
intrusive pieces of the program integrity regulations issued by 
the U.S. Department of Education, specifically, the state 
authorization regulation and the credit hour regulation, and to 
uncover the unintended consequences of the regulations to 
states and institutions of higher education. Testifying before 
the Subcommittee were Mr. John Ebersole, President, Excelsior 
College, Albany, New York; Dr. G. Blair Dowden, President, 
Huntington University, Huntington, Indiana; The Honorable 
Kathleen Tighe, Inspector General, U.S. Department of 
Education, Washington, D.C.; and Mr. Ralph Wolff, President, 
Western Association of Schools and Colleges, Alameda, 
California.
    On March 17, 2011, the Committee held a hearing in 
Washington, D.C., on ``Education Regulations: Roadblocks to 
Student Choice in Higher Education.'' The purpose of the 
hearing was to explore the harmful consequences of the gainful 
employment regulation issued by the U.S. Department of 
Education. Testifying before the Committee were Ms. Catherine 
Barreto, Graduate, Monroe College, and Senior Sales Associate, 
Doubletree Hotels, Brooklyn, New York; Mr. Travis Jennings, 
Electrical Supervisor of the Manufacturing Launch Systems 
Group, Orbital Sciences Corporation, Chandler, Arizona; Dr. 
Arnold Mitchem, President, Council for Opportunity in 
Education, Washington, D.C.; and Ms. Jeanne Herrmann, Chief 
Operating Officer, Globe University/Minnesota School of 
Business, Woodbury, Minnesota.
    On March 21, 2011, the Committee held a hearing in Wilkes-
Barre, Pennsylvania, on ``Reviving our Economy: The Role of 
Higher Education in Job Growth and Development.'' The purpose 
of the hearing was to highlight work by local colleges and 
universities to respond to local and state economic needs. 
Testifying before the Committee were Mr. James Perry, 
President, Hazelton City Council, Hazelton, Pennsylvania; Mr. 
Jeffrey Alesson, Vice President of Strategic Planning and 
Quality Assurance, Diamond Manufacturing, Exeter, Pennsylvania; 
Dr. Reynold Verret, Provost, Wilkes University, Wilkes-Barre, 
Pennsylvania; Mr. Raymond Angeli, President, Lackawanna 
College, Scranton, Pennsylvania; Ms. Joan Seaman, Executive 
Director, Empire Beauty School, Moosic, Pennsylvania; and Mr. 
Thomas P. Leary, President, Luzerne County Community College, 
Nanticoke, Pennsylvania.
    On March 22, 2011, the Committee held a hearing in Utica, 
New York, on ``Reviving our Economy: The Role of Higher 
Education in Job Growth and Development.'' The purpose of the 
hearing was to highlight work by local colleges and 
universities to respond to local and state economic needs. 
Testifying before the Committee were Mr. Anthony J. Picente, 
Jr., County Executive, Oneida County, Utica, New York; Mr. Dave 
Mathis, Director, Oneida County Workforce Development, Utica, 
New York; Dr. John Bay, Vice President and Chief Scientist, 
Assured Information Security, Inc., Rome, New York; Dr. Bjong 
Wolf Yeigh, President, State University of New York Institute 
of Technology, Utica, New York; Dr. Ann Marie Murray, 
President, Herkimer County Community College, Herkimer, New 
York; Dr. Judith Kirkpatrick, Provost, Utica College, Utica, 
New York; and Mr. Phil Williams, President, Utica School of 
Commerce, The Business College, Utica, New York.
    On April 21, 2011, the Committee held a hearing in 
Columbia, Tennessee, on ``Reviving our Economy: The Role of 
Higher Education in Job Growth and Development.'' The purpose 
of the hearing was to highlight the work by local colleges and 
universities to respond to local and state economic needs. 
Testifying before the Committee were Dr. Janet Smith, 
President, Columbia State Community College, Columbia, 
Tennessee; Dr. Ted Brown, President, Martin-Methodist College, 
Pulaski, Tennessee; Mr. Jim Coakley, President, Nashville Auto-
Diesel College, Nashville, Tennessee; The Honorable Dean 
Dickey, Mayor, City of Columbia, Columbia, Tennessee; Ms. Susan 
Marlow, President and Chief Executive Officer, Smart Data 
Strategies, Franklin, Tennessee; Ms. Jan McKeel, Executive 
Director, South Central Tennessee Workforce Board, Columbia, 
Tennessee; and Ms. Margaret Prater, Executive Director, 
Northwest Tennessee Workforce Board, Dyersburg, Tennessee.
    On July 8, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training, together with the House Committee on Oversight and 
Government Reform Subcommittee on Regulatory Affairs, Stimulus 
Oversight, and Government Spending, held a hearing in 
Washington, D.C., on ``The Gainful Employment Regulation: 
Limiting Job Growth and Student Choice.'' The purpose of the 
hearing was to explore the harmful consequences of the gainful 
employment regulation issued by the U.S. Department of 
Education. Testifying before the subcommittees were Dr. Dario 
A. Cortes, President, Berkeley College, New York City, New 
York; Dr. Anthony P. Carnevale, Director, Georgetown University 
Center on Education and the Workforce, Washington, D.C.; Ms. 
Karla Carpenter, Graduate, Herzing University and Program 
Manager, Quest Software, Madison, Wisconsin; and Mr. Harry C. 
Alford, President and Chief Executive Officer, National Black 
Chamber of Commerce, Washington, D.C.
    On August 16, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Greenville, South Carolina, on 
``Reviving Our Economy: The Role of Higher Education in Job 
Growth and Development.'' The purpose of the hearing was to 
highlight the work by local colleges and universities to 
respond to local and state economic needs. Testifying before 
the Subcommittee were The Honorable Knox White, Mayor, City of 
Greenville, Greenville, South Carolina; Mr. Werner Eikenbusch, 
Section Manager, Associate Development and Training, BMW 
Manufacturing Co., Spartanburg, South Carolina; Ms. Laura 
Harmon, Project Director, Greenville Works, Greenville, South 
Carolina; Dr. Brenda Thames, Vice President of Academic 
Development, Greenville Health System, Greenville, South 
Carolina; Mr. James F. Barker, President, Clemson University, 
Clemson, South Carolina; Dr. Thomas F. Moore, Chancellor, 
University of South Carolina Upstate, Spartanburg, South 
Carolina; Dr. Keith Miller, President, Greenville Technical 
College, Greenville, South Carolina; and Ms. Amy Hickman, 
Campus President, ECPI College of Technology, Greenville, South 
Carolina.
    On October 25, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Government-
Run Student Loans: Ensuring the Direct Loan Program is 
Accountable to Students and Taxpayers.'' The purpose of the 
hearing was to examine the switch to and implementation of the 
Direct Loan program. Testifying before the Subcommittee were 
Mr. James W. Runcie, Chief Operating Officer, Office of Federal 
Student Aid, U.S. Department of Education, Washington, D.C.; 
Mr. Ron H. Day, Director of Financial Aid, Kennesaw State 
University, Kennesaw, Georgia; Ms. Nancy Hoover, Director of 
Financial Aid, Denison University, Granville, Ohio; and Mr. 
Mark. A. Bandre, Vice President for Enrollment Management and 
Student Affairs, Baker University, Baldwin City, Kansas.
    On November 30, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Keeping 
College Within Reach: Discussing Ways Institutions Can 
Streamline Costs and Reduce Tuition.'' The purpose of the 
hearing was to highlight innovative practices institutions of 
higher education are implementing to reduce their costs to 
limit tuition increases for students. Testifying before the 
Subcommittee were Ms. Jane V. Wellman, Executive Director, 
Delta Project on Postsecondary Costs, Productivity, and 
Accountability, Washington, D.C.; Dr. Ronald E. Manahan, 
President, Grace College and Seminary, Winona Lake, Indiana; 
Mr. Jamie P. Merisotis, President and Chief Executive Officer, 
Lumina Foundation for Education, Indianapolis, Indiana; and Mr. 
Tim Foster, President, Colorado Mesa University, Grand 
Junction, Colorado.

Legislative action--First session

    On February 17, 2011, the House of Representatives 
considered an amendment offered by Committee Chairman John 
Kline (R-MN), Higher Education and Workforce Training 
Subcommittee Chairwoman Virginia Foxx (R-NC), and Rep. Alcee 
Hastings (D-FL) to H.R. 1, the Disaster Relief Appropriations 
Act of 2013. The amendment prohibited the use of funds by the 
U.S. Department of Education to implement and enforce the 
gainful employment regulation. The amendment was agreed to by a 
bipartisan vote of 289 to 136.
    On February 19, 2011, the House of Representatives passed 
H.R. 1 by a vote of 235 to 189. This bill was not signed into 
law.
    On June 3, 2011, Chairman John Kline (R-MN) and 
Subcommittee Chairwoman Virginia Foxx (R-NC) introduced H.R. 
2117, the Protecting Academic Freedom in Higher Education Act. 
The bill repealed the state authorization regulation, one piece 
of the credit hour regulation, and prohibited the Secretary of 
Education (Secretary) from defining credit hour for any purpose 
under the Higher Education Act of 1965.
    On June 15, 2011, the Committee considered H.R. 2117 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a bipartisan vote of 27 to 11.
    The Committee considered and adopted the following 
amendment to H.R. 2117:
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to add a 
short title to the legislation. The amendment was adopted by 
voice vote.
    The Committee further considered the following amendments 
to H.R. 2117, which were not adopted:
     Rep. Raul Grijalva (D-AZ) offered an amendment to 
maintain pieces of the state authorization regulation, 
including the complaint process. The amendment failed by a vote 
of 17 to 22.
     Ranking Member George Miller (D-CA) offered an 
amendment to prohibit implementation until the U.S. Department 
of Education Inspector General certifies there are equal or 
greater protections in place related to program integrity under 
Title IV of the Higher Education Act of 1965. The amendment 
failed by a vote of 17 to 22.
     Rep. Rush Holt (D-NJ) offered an amendment to 
stipulate the act would be effective only if the maximum Pell 
Grant award is at least $5,550 for the 2012-2013 school year. 
The amendment was ruled out of order.
     Rep. Tim Bishop (D-NY) offered an amendment to 
strike the repeal of the credit hour regulation that 
establishes a federal definition of a credit hour. The 
amendment failed by a vote of 11 to 27.
     Rep. Tim Bishop (D-NY) offered an amendment to 
strike the prohibition on the Secretary of Education from 
defining credit hour in the future. The amendment failed by a 
vote of 16 to 22.

Hearings--Second session

    On July 18, 2012, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Keeping 
College Within Reach: Exploring State Efforts to Curb Costs.'' 
The purpose of the hearing was to highlight innovative 
practices at the state level to assist postsecondary 
institutions in keeping costs affordable and to promote 
accountability of public funds. Testifying before the 
Subcommittee were Mr. Scott Pattison, Executive Director, 
National Association of State Budget Officers, Washington, 
D.C.; Ms. Teresa Lubbers, Commissioner for Higher Education, 
State of Indiana, Indianapolis, Indiana; Mr. Stan Jones, 
President, Complete College America, Zionsville, Indiana; and 
Dr. Joe May, President, Louisiana Community and Technical 
College System, Baton Rouge, Louisiana.
    On September 20, 2012, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Assessing 
College Data: Helping to Provide Valuable Information to 
Students, Institutions, and Taxpayers.'' The purpose of the 
hearing was to examine data collected by the federal government 
from institutions of higher education, including data 
requirements established during the last reauthorization of the 
Higher Education Act. Testifying before the Subcommittee were 
Dr. Mark Schneider, Vice President, American Institutes for 
Research, Washington, D.C.; Dr. James Hallmark, Vice Chancellor 
for Academic Affairs, Texas A&M System, College Station, Texas; 
Dr. Jose Cruz, Vice President for Higher Education Policy and 
Practice, The Education Trust, Washington, D.C.; and Dr. Tracy 
Fitzsimmons, President, Shenandoah University, Winchester, 
Virginia.

Legislative action--Second session

    On February 28, 2012, the House of Representatives passed 
H.R. 2117 by a bipartisan vote of 303 to 114. The bill was sent 
to the Senate and referred to the Senate Committee on Health, 
Education, Labor, and Pensions.
    On April 25, 2012, Rep. Judy Biggert (R-IL) introduced H.R. 
4628, the Interest Rate Reduction Act. The bill reduced the 
interest rate on subsidized Stafford loans made to 
undergraduate students from 6.8 percent to 3.4 percent for one 
year, from July 1, 2012, through June 30, 2013. To offset the 
increase in mandatory spending, the bill repealed the 
Prevention and Public Health Fund authorized under Section 4002 
of the Patient Protection and Affordable Care Act and rescinded 
the balance of unobligated monies made available for the fund.
    On April 27, 2012, the House of Representatives passed H.R. 
4628 by a vote of 215 to 195.
    While H.R. 4628 was never considered by the Senate, its 
provisions were included in the Conference Report for H.R. 
4348, the Moving Ahead for Progress in the 21st Century Act 
(MAP-21), sponsored by Rep. John Mica (R-FL). To partially 
offset the increase in mandatory spending that resulted from 
the temporary reduction in interest rates on subsidized 
Stafford loans, the bill permanently restricted the period of 
eligibility to borrow subsidized Stafford loans to 150 percent 
of the published length of a student's educational program.
    On June 29, 2012, the House of Representatives passed the 
Conference Report to H.R. 4348 by a bipartisan vote of 373 to 
52.
    On June 29, 2012, the Senate passed the Conference Report 
to H.R. 4348 by a bipartisan vote of 74 to 19.
    On July 6, 2012, the President of the United States signed 
H.R. 4348 into law (P.L. 112-141).

                             113TH CONGRESS

Hearings--First session

    On March 13, 2013, the Committee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Examining 
Opportunities to Strengthen Federal Student Loan Programs.'' 
The purpose of the hearing was to examine ways to strengthen 
federal student loans, as well as how moving to a market-based 
or variable interest rate on all federal student loans could 
benefit both students and taxpayers. Testifying before the 
Committee were Dr. Deborah J. Lucas, Sloan Distinguished 
Professor of Finance, Massachusetts Institute of Technology, 
Cambridge, Massachusetts; Mr. Jason Delisle, Director, Federal 
Education Budget Project, The New America Foundation, 
Washington, D.C.; Mr. Justin Draeger, President and Chief 
Executive Officer, National Association of Student Financial 
Aid Administrators, Washington, D.C.; and Dr. Charmaine Mercer, 
Vice President of Policy, Alliance for Excellent Education, 
Washington, D.C.
    On April 9, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Monroe, Michigan, entitled 
``Reviving Our Economy: The Role of Higher Education in Job 
Growth and Development.'' The purpose of the hearing was to 
highlight work being done by local colleges and universities to 
respond to local and state economic needs. Testifying before 
the Subcommittee were Mr. Henry Lievens, Commissioner, Monroe 
County, Monroe, Michigan; Ms. Lynette Dowler, Plant Director, 
Fossil Generation, DTE Energy, Detroit, Michigan; Ms. Susan 
Smith, Executive Director, Economic Development Partnership of 
Hillsdale County, Jonesville, Michigan; Mr. Dan Fairbanks, 
United Auto Workers International Representative, UAW-GM Skill 
Development and Training Department, Detroit, Michigan; Dr. 
David E. Nixon, President, Monroe County Community College, 
Monroe, Michigan; Sister Peg Albert, OP, Ph.D., President, 
Siena Heights University, Adrian, Michigan; Dr. Michelle 
Shields, Career Coach/Workforce Development Director, Jackson 
Community College, Jackson, Michigan; and Mr. Douglas A. Levy, 
Director of Financial Aid, Macomb Community College, Warren, 
Michigan.
    On April 16, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: The Role of Federal Student Aid 
Programs.'' The purpose of the hearing was to examine shifting 
the focus of federal student aid programs from enhancing access 
to improving student outcomes. Testifying before the 
Subcommittee were Mr. Terry W. Hartle, Senior Vice President, 
Division of Government and Public Affairs, American Council on 
Education, Washington, D.C.; Ms. Moriah Miles, State Chair, 
Minnesota State University Student Association, Mankato, 
Minnesota; Ms. Patricia McGuire, President, Trinity Washington 
University, Washington, D.C.; and Mr. Dan Madzelan, Former 
Employee (Retired), U.S. Department of Education, University 
Park, Maryland.
    On April 24, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: Enhancing Transparency for Students, 
Families, and Taxpayers.'' The purpose of the hearing was to 
examine ways to improve the information provided by the federal 
government to inform students and families about their 
postsecondary education options. Testifying before the 
Subcommittee were Dr. Donald E. Heller, Dean, College of 
Education, Michigan State University, East Lansing, Michigan; 
Mr. Alex Garrido, Student, Keiser University, Miami, Florida; 
Dr. Nicole Farmer Hurd, Founder and Executive Director, 
National College Advising Corps, Carrboro, North Carolina; and 
Mr. Travis Reindl, Program Director, Postsecondary Education, 
National Governors Association Center for Best Practices, 
Washington, D.C.
    On June 13, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: Discussing Program Quality through 
Accreditation.'' The purpose of the hearing was to examine the 
historical role of accreditation, discuss the role of regional 
and national accreditors in measuring institutional quality, 
and contemplate areas for reform. Testifying before the 
Subcommittee were Dr. Elizabeth H. Sibolski, President, Middle 
States Commission on Higher Education, Philadelphia, 
Pennsylvania; Dr. Michale McComis, Executive Director, 
Accrediting Commission of Career Schools and Colleges, 
Arlington, Virginia; Ms. Anne D. Neal, President, American 
Council of Trustees and Alumni, Washington, D.C.; and Mr. Kevin 
Carey, Director of the Education Policy Program, The New 
America Foundation, Washington, D.C.
    On July 9, 2013, the Committee held a hearing in 
Washington, D.C., entitled ``Keeping College Within Reach: 
Improving Higher Education through Innovation.'' The purpose of 
the hearing was to highlight innovation in higher education 
occurring at the state and institutional level and in the 
private sector. Testifying before the Committee were Mr. Scott 
Jenkins, Director of External Relations, Western Governors 
University, Salt Lake City, Utah; Dr. Pamela J. Tate, President 
and Chief Executive Officer, Council for Adult and Experiential 
Learning, Chicago, Illinois; Dr. Joann A. Boughman, Senior Vice 
Chancellor for Academic Affairs, University System of Maryland, 
Adelphi, Maryland; and Mr. Burck Smith, Chief Executive Officer 
and Founder, StraighterLine, Baltimore, Maryland.
    On September 11, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: Supporting Higher Education Opportunities 
for America's Servicemembers and Veterans.'' The purpose of the 
hearing was to examine the efforts of higher education to 
improve postsecondary education opportunities for 
servicemembers and veterans. Testifying before the Subcommittee 
were Mrs. Kimrey W. Rhinehardt, Vice President for Federal and 
Military Affairs, The University of North Carolina, Chapel 
Hill, North Carolina; Dr. Arthur F. Kirk, Jr., President, Saint 
Leo University, Saint Leo, Florida; Dr. Russell S. Kitchner, 
Vice President for Regulatory and Governmental Relations, 
American Public University System, Charles Town, West Virginia; 
and Dr. Ken Sauer, Senior Associate Commissioner for Research 
and Academic Affairs, Indiana Commission for Higher Education, 
Indianapolis, Indiana.
    On September 18, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: Improving Access and Affordability 
through Innovative Partnerships.'' The purpose of the hearing 
was to examine the efforts of higher education institutions to 
expand access and reduce costs by partnering with local 
employers, other colleges, or online course providers. 
Testifying before the Subcommittee were Dr. Jeffrey Docking, 
President, Adrian College, Adrian, Michigan; Ms. Paula R. 
Singer, President and Chief Executive Officer, Laureate Global 
Products and Services, Baltimore, Maryland; Dr. Rich Baraniuk, 
Professor, Rice University, and Founder, Connexions, Houston, 
Texas; and Dr. Charles Lee Isbell, Jr., Professor and Senior 
Associate Dean, College of Computing, Georgia Institute of 
Technology, Atlanta, Georgia.
    On November 13, 2013, the Committee held a hearing in 
Washington, D.C., entitled ``Keeping College Within Reach: 
Simplifying Federal Student Aid.'' The purpose of the hearing 
was to examine the need to streamline, consolidate, and 
simplify federal student aid programs. Testifying before the 
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM 
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research 
Professor of Education Policy, George Washington University 
Graduate School of Education and Human Development, and Senior 
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer 
Mishory, J.D., Deputy Director, Young Invincibles, Washington, 
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget 
Project, New America Foundation, Washington, D.C.
    On December 3, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: Strengthening Pell Grants for Future 
Generations.'' The purpose of the hearing was to examine Pell 
Grant program reform proposals to better target funds to the 
neediest students and put the program on a fiscally responsible 
and sustainable path. Testifying before the Subcommittee were 
Mr. Justin Draeger, President and Chief Executive Officer, 
National Association of Student Financial Aid Administrators, 
Washington, D.C.; Dr. Jenna Ashley Robinson, Director of 
Outreach, John W. Pope Center for Higher Education Policy, 
Raleigh, North Carolina; Mr. Michael Dannenberg, Director of 
Higher Education and Education Finance Policy, The Education 
Trust, Washington, D.C.; and Mr. Richard C. Heath, Director of 
Student Financial Services, Anne Arundel Community College, 
Arnold, Maryland.

Legislative action--First session

    On May 9, 2013, Chairman John Kline (R-MN) and Subcommittee 
Chairwoman Virginia Foxx (R-NC) introduced H.R. 1911, the 
Smarter Solutions for Students Act. The bill moved all federal 
student loans (except Perkins loans) to a market-based interest 
rate.
    On May 16, 2013, the Committee considered H.R. 1911 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a bipartisan vote of 24 to 13.
    The Committee considered and adopted the following 
amendment to H.R. 1911:
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to make a 
technical change to the bill. The amendment was adopted by 
voice vote.
    The Committee further considered the following amendments 
to H.R. 1911, which were not adopted:
     Rep. Joe Heck (R-NV) offered an amendment to 
allocate a portion of the savings generated under the bill to 
Pell Grants. The amendment was withdrawn.
     Rep. Joe Heck (R-NV) offered an amendment to 
provide the Secretary of Education with authority to reduce the 
interest rate on student loans if a borrower makes the first 48 
payments on time. The amendment was withdrawn.
     Rep. John Tierney (D-MA) offered an amendment to 
set the federal student loan interest rates at the same rate 
the Federal Reserve charges to banks for two years. The 
amendment failed by a vote of 14 to 23.
     Rep. Joe Courtney (D-CT) offered an amendment to 
extend the 3.4 percent interest rate on subsidized Stafford 
loans for two years. The amendment failed by a vote of 15 to 
21.
    On May 23, 2013, the House of Representatives passed H.R. 
1911 by a bipartisan vote of 221 to 198.
    On July 24, 2013, the Senate passed a substitute version of 
H.R. 1911, the Bipartisan Student Loan Certainty Act, by a 
bipartisan vote of 81 to 18. The legislation allowed student 
loan interest rates to reset once a year by the market, but 
they would be locked into a fixed rate once the loan is 
disbursed to the student. Interest rates would be set using the 
following formulas:
     Undergraduate Stafford loans (subsidized and 
unsubsidized): 10-year Treasury Note plus 2.05 percent, capped 
at 8.25 percent.
     Graduate Stafford loans: 10-year Treasury Note 
plus 3.6 percent, capped at 9.5 percent.
     PLUS loans (graduate and parent): 10-year Treasury 
Note plus 4.6 percent, capped at 10.5 percent.
    On July 31, 2013, the House of Representatives agreed to 
suspend the rules and agree to the Senate amendment to H.R. 
1911 by a bipartisan vote of 392 to 31.
    On August 9, 2013, the President of the United States 
signed H.R. 1911 into law (P.L. 113-28).
    On May 13, 2013, Rep. Luke Messer (R-IN) introduced H.R. 
1949, the Improving Postsecondary Education Data for Students 
Act. The bill directed the Secretary to convene an Advisory 
Committee on Improving Postsecondary Education Data to conduct 
a study on the factors students and families want, need, and 
already consider when choosing a higher education institution.
    On May 16, 2013, the Committee considered H.R. 1949 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a voice vote. The Committee 
considered and adopted the following amendment to H.R. 1949:
     Rep. Luke Messer (R-IN) offered an amendment in 
the nature of a substitute to H.R. 1949 to (1) include 
individuals who represent undergraduate and graduate education; 
college and career counselors at secondary schools; experts in 
data policy, collection, and use; and experts in labor markets 
on the list of individuals required to be represented on the 
Advisory Committee on Improving Postsecondary Education Data; 
(2) ensure individuals on the advisory committee represent 
economic, racial, and geographically diverse populations; (3) 
require the advisory committee to examine information related 
to the sources of financial assistance, including federal 
student loans, as part of the required aspects of the study; 
(4) require the advisory committee to examine how information 
regarding student outcomes should be disaggregated for first-
generation students; and (5) provide other conforming and 
technical changes to the bill. The amendment was adopted by 
voice vote.
    On May 22, 2013, the House of Representatives agreed to 
suspend the rules and pass H.R. 1949 by voice vote. The bill 
was sent to the Senate and referred to the Senate Committee on 
Health, Education, Labor, and Pensions.
    On July 10, 2013, Chairman John Kline (R-MN), Subcommittee 
Chairwoman Virginia Foxx (R-NC), and Rep. Alcee Hastings (D-FL) 
introduced H.R. 2637, the Supporting Academic Freedom through 
Regulatory Relief Act. The bill, which included the text of the 
Protecting Academic Freedom in Higher Education Act (H.R. 2117) 
and the Kline/Foxx/Hastings amendment to H.R. 1 from the 112th 
Congress, repealed the credit hour, state authorization, and 
gainful employment regulations and amended the statute to 
clarify the incentive compensation regulation. Additionally, 
the bill prohibited the U.S. Department of Education from 
issuing related regulations until after Congress reauthorizes 
the Higher Education Act.
    On July 24, 2013, the Committee considered H.R. 2637 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a bipartisan vote of 22 to 13.
    The Committee considered and adopted the following 
amendment to H.R. 2637:
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to change a 
subsection title in the legislation. The amendment was adopted 
by voice vote.
    The Committee further considered the following amendment to 
H.R. 2637, which was not adopted:
     Rep. Tim Bishop (D-NY) offered an amendment to 
strike the prohibition on the U.S. Department of Education from 
issuing regulations related to state authorization, gainful 
employment, and credit hour. The amendment failed by a vote of 
13 to 22.

Hearings--Second session

    On January 28, 2014, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., entitled ``Keeping 
College Within Reach: Sharing Best Practices for Serving Low-
Income and First Generation Students.'' The purpose of the 
hearing was to highlight best practices at institutions of 
higher education for serving low-income and first generation 
students. Testifying before the Subcommittee were Dr. James 
Anderson, Chancellor, Fayetteville State University, 
Fayetteville, North Carolina; Mrs. Mary Beth Del Balzo, Senior 
Executive Vice President and Chief Executive Officer, The 
College of Westchester, White Plains, New York; Mr. Josse Alex 
Garrido, Graduate Student, University of Texas--Pan American, 
Edinburg, Texas; and Rev. Dennis H. Holtschneider, President, 
DePaul University, Chicago, Illinois.
    On February 27, 2013, the Committee on Education and the 
Workforce Subcommittee on Early Childhood, Elementary, and 
Secondary Education and Subcommittee on Higher Education and 
Workforce Training held a joint hearing in Washington, D.C., on 
``Exploring Efforts to Strengthen the Teaching Profession.'' 
The purpose of the hearing was to discuss the state of teacher 
preparation nationwide. Testifying before the subcommittees 
were Dr. Deborah A. Gist, Commissioner, Rhode Island Department 
of Elementary and Secondary Education, Providence, Rhode 
Island; Dr. Marcy Singer-Gabella, Professor of the Practice of 
Education, Vanderbilt University, Nashville, Tennessee; Dr. 
Heather Peske, Associate Commissioner for Educator Quality, 
Massachusetts Department of Elementary and Secondary Education, 
Malden, Massachusetts; and Ms. Christina Hall, Co-Founder and 
Co-Director, Urban Teacher Center, Baltimore, Maryland.
    On March 12, 2014, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Examining the 
Mismanagement of the Student Loan Rehabilitation Process.'' The 
purpose of the hearing was to examine the U.S. Department of 
Education's ability to oversee the processing of rehabilitated 
loans issued under the Direct Loan program. Testifying before 
the Subcommittee were Ms. Melissa Emrey-Arras, Director of 
Education, Workforce, and Income Security Issues, U.S. 
Government Accountability Office, Boston, Massachusetts; The 
Honorable Kathleen Tighe, Inspector General, U.S. Department of 
Education, Washington, D.C.; Mr. James Runcie, Chief Operating 
Officer, Federal Student Aid, U.S. Department of Education, 
Washington, D.C.; and Ms. Peg Julius, Executive Director of 
Enrollment Management, Kirkwood Community College, Cedar 
Rapids, Iowa.
    On March 20, 2014, the Committee held a hearing in Mesa, 
Arizona, entitled ``Reviving Our Economy: Supporting a 21st 
Century Workforce.'' The purpose of the hearing was to explore 
the role of local higher education institutions in fostering 
job creation and growth through innovative partnerships with 
the business community and new modes of teaching delivery. 
Testifying before the Committee were The Honorable Rick 
Heumann, Vice Mayor, City of Chandler, Chandler, Arizona; Ms. 
Cathleen Barton, Education Manager, Intel Corporate Affairs, 
Southwestern United States, Intel Corporation, Chandler, 
Arizona; Mr. Lee D. Lambert, J.D., Chancellor, Pima Community 
College, Tucson, Arizona; Dr. William Pepicello, President, 
University of Phoenix, Tempe, Arizona; Dr. Michael Crow, 
President, Arizona State University, Tempe, Arizona; Dr. Ann 
Weaver Hart, President, The University of Arizona, Tucson, 
Arizona; Dr. Ernest A. Lara, President, Estrella Mountain 
Community College, Avondale, Arizona; and Ms. Christy Farley, 
Vice President of Government Affairs and Business Partnerships, 
Northern Arizona University, Phoenix, Arizona.
    On April 2, 2014, the Committee on Education and the 
Workforce held a hearing in Washington, D.C., entitled 
``Keeping College Within Reach: Meeting the Needs of 
Contemporary Students.'' The purpose of the hearing was to 
examine how institutions, states, and other entities assist 
contemporary college students in accessing and completing 
postsecondary education. Testifying before the Committee were 
Dr. George A. Pruitt, President, Thomas Edison State College, 
Trenton, New Jersey; Dr. Kevin Gilligan, Chairman and Chief 
Executive Officer, Capella Education Company, Minneapolis, 
Minnesota; Mr. David Moldoff, Chief Executive Officer and 
Founder, AcademyOne, Inc., West Chester, Pennsylvania; Dr. 
Joann A. Boughman, Senior Vice Chancellor for Academic Affairs, 
University System of Maryland, Adelphi, Maryland; Mr. Stan 
Jones, President, Complete College America, Indianapolis, 
Indiana; and Dr. Brooks A. Keel, President, Georgia Southern 
University, Statesboro, Georgia.

Legislative action--Second session

    On September 19, 2013, Rep. Matt Salmon (R-AZ), Rep. Susan 
Brooks (R-IN), and Rep. Jared Polis (D-CO) introduced H.R. 
3136, the Advancing Competency-Based Education Demonstration 
Project Act of 2013. The bill directed the Secretary to select 
institutions or consortia of institutions for voluntary 
participation in competency-based education demonstration 
projects. The demonstration projects would have provided 
participating entities with the ability to offer competency-
based education programs that do not meet certain statutory and 
regulatory requirements which would otherwise prevent them from 
participating in federal student aid programs.
    On July 10, 2014, the Committee considered H.R. 3136 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a voice vote. The Committee 
considered and adopted the following amendment to H.R. 3136:
     Rep. Matt Salmon (R-AZ) and Rep. Jared Polis (D-
CO) offered an amendment in the nature of a substitute to add 
certain requirements to the applications to participate in a 
competency-based education project; allow eligible entities to 
submit amendments to their previously-approved applications; 
set requirements for the entities the Secretary must choose to 
participate in the programs; require institutions to provide 
student information to the director of the Institute of 
Education Sciences (IES); require the Director of IES to 
annually evaluate each project and provide a report with 
specified information to the authorizing committees; authorize 
funds to be available from the amount appropriated for salaries 
and expenses of the U.S. Department of Education, and make 
conforming and technical changes to the introduced bill. The 
amendment was adopted by voice vote.
    The Committee further considered the following amendment to 
H.R. 3136, which was not adopted:
     Rep. Tierney (D-MA) offered an amendment that 
would have allowed students with federal student loans and 
private student loans issued prior to 2013 to refinance those 
loans into new federal loans at the interest rate set for the 
2013-2014 academic year. The amendment was ruled non-germane. 
Ranking Member George Miller (D-CA) appealed the ruling of the 
chair. Rep. Glenn Thompson (R-PA) offered a motion to table the 
appeal of the ruling of the chair, which was adopted by a vote 
of 22 to 16.
    On July 23, 2014, the House of Representatives considered 
H.R. 3136 and passed it, as amended, by a recorded vote of 414-
0 on July 23, 2014. The bill was sent to the Senate and was 
referred to the Senate Committee on Health, Education, Labor, 
and Pensions.
    On June 26, 2014, Subcommittee Chairwoman Virginia Foxx (R-
NC) and Rep. Luke Messer (R-IN) introduced H.R. 4983, the 
Strengthening Transparency in Higher Education Act. The bill 
simplified and streamlined the information made publicly 
available by the Secretary regarding institutions of higher 
education.
    On July 10, 2014, the Committee considered H.R. 4983 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a voice vote. The Committee 
considered and adopted the following amendment to H.R. 4983:
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute that 
required additional information on the College Dashboard; 
required the Secretary to conduct consumer testing in 
consultation with appropriate federal departments and agencies; 
ensured consumer testing addresses whether the College 
Dashboard provides useful and relevant information to students 
and families; required the Secretary to submit to the 
authorizing committees recommendations based on the results of 
consumer testing; set new minimum requirements for net price 
calculators, required funding to come from funds already 
appropriated to maintain the College Navigator; and made other 
conforming and technical changes. The amendment was adopted by 
voice vote.
    The Committee further considered the following amendment to 
H.R. 4983, which was not adopted:
     Ranking Member George Miller (D-CA) offered an 
amendment that required the Commissioner of Education 
Statistics to establish a formula for determining the 
percentage of student borrowers who have completed their course 
of study and who are in repayment or in an authorized deferment 
period at three, five and 10 years after completion of a 
program of study. The amendment failed by a vote of 13 to 21.
    On July 23, 2014, the House of Representatives considered 
H.R. 4983 under suspension of the rules. The bill was agreed to 
by voice vote, sent to the Senate, and referred to the Senate 
Committee on Health, Education, Labor, and Pensions.
    On June 26, 2014, Rep. Brett Guthrie (R-KY) and Rep. 
Richard Hudson (R-NC) introduced H.R. 4984, the Empowering 
Students through Enhanced Financial Counseling Act. The bill 
amended the loan counseling requirements under the Higher 
Education Act and required counseling for Federal Pell Grant 
recipients.
    On July 10, 2014, the Committee considered H.R. 4984 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by voice vote. The Committee 
considered and adopted the following amendment to H.R. 4984:
     Reps. Brett Guthrie (R-KY) and Suzanne Bonamici 
(D-OR) offered an amendment in the nature of a substitute that 
removed the requirement that annual counseling for Pell Grant 
recipients be tied to disbursement of the grant; required 
additional information be disclosed to borrowers during annual 
counseling and exit counseling sessions; required institutions 
to provide annual counseling to borrowers receiving Parent PLUS 
loans; required any funds used to carry out the act to come 
from funds already appropriated to maintain the Financial 
Awareness Counseling Tool; and made conforming and technical 
changes. The amendment was adopted by voice vote.
    The Committee further considered the following amendment to 
H.R. 4984, which was not adopted:
     Rep. Susan Davis (D-CA) offered an amendment to 
modify the rule requiring for-profit colleges to receive at 
least 10 percent of their revenue from sources other than the 
U.S. Department of Education to remain eligible for federal 
student aid to include all federal aid, including veterans' 
educational benefits and some Workforce Investment Act funds, 
in the 90 percent portion of the calculation and only private 
funds in the 10 percent portion of the calculation. The 
amendment was ruled non-germane. Ranking Member George Miller 
(D-CA) appealed the ruling of the chair. Rep. Glenn Thompson 
(R-PA) offered a motion to table the appeal of the ruling of 
the chair, which was adopted by a vote of 20 to 13.
    On July 24, 2014, the House of Representatives considered 
H.R. 4984 and passed it, as amended, by a vote of 405-11. The 
bill was sent to the Senate and referred to the Senate 
Committee on Health, Education, Labor, and Pensions.

                             114TH CONGRESS

Hearings--First session

    On February 4, 2015, the Committee held a hearing in 
Washington, D.C., on ``Expanding Opportunity in America's 
Schools and Workplaces.'' The purpose of the hearing was to 
allow Committee members to learn about efforts made by state 
leaders to strengthen education, to make sure those who 
graduate are prepared to pursue a postsecondary education and 
compete in the workforce, and promote efforts to spur job 
creation. Testifying before the Committee were Dr. Michael 
Amiridis, Provost and Executive Vice President for Academic 
Affairs, University of South Carolina, Columbia, South 
Carolina; Mr. Drew Greenblatt, President and CEO, Marlin Steel 
Wire Products, Baltimore, Maryland; Dr. Lawrence Mishel, Ph.D., 
President, Economic Policy Institute, Washington, D.C.; and The 
Honorable Mike Pence, Governor, State of Indiana, Indianapolis, 
Indiana.
    On March 17, 2015, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Strengthening 
America's Higher Education System.'' The purpose of the hearing 
was to explore policy proposals that align with the Committee's 
four pillars for reauthorization of the HEA: (1) empowering 
students and families to make informed decisions; (2) 
simplifying and improving student aid; (3) promoting 
innovation, access, and completion; and (4) ensuring strong 
accountability and a limited federal role. Testifying before 
the Subcommittee were Mr. Willis Goldsmith, Partner, Jones Day, 
New York, New York who testified on behalf of the U.S. Chamber 
of Commerce; Mr. Stan Soloway, President and CEO, Professional 
Services Council, Arlington, Virginia; Ms. Angela Styles, 
Partner, Crowell & Moring LLP, Washington, D.C.; and Ms. Karla 
Walter, Associate Director, American Worker Project, Center for 
American Progress, Washington, D.C.
    On April 30, 2015, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Improving 
College Access and Completion for Low-Income and First-
Generation Students.'' The purpose of the hearing was to 
explore policy proposals and best practices to strengthen 
programs to help disadvantaged students access and complete 
higher education. Testifying before the Subcommittee were Dr. 
Laura Perna, James S. Riepe Professor, Executive Director, 
Alliance for Higher Education and Democracy, University of 
Pennsylvania, Philadelphia, Pennsylvania; Dr. Charles J. 
Alexander, Associate Vice Provost for Student Diversity, 
Director, Academic Advancement Program, Associate Adjunct 
Professor, University of California, Los Angeles, California; 
Dr. Michelle Asha Cooper, President, Institute for Higher 
Education Policy, Washington, D.C.; and Dr. Joe D. May, 
Chancellor, Dallas County Community College District, Dallas, 
Texas.
    On September 10, 2015, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C., on ``Preventing 
and Responding to Sexual Assault on College Campuses.'' The 
purpose of the hearing was to explore policy proposals and best 
practices to help institutions address and respond to campus 
sexual assault and violence. Testifying before the Subcommittee 
were Ms. Dana Scaduto, General Counsel, Dickinson College, 
Carlisle, Pennsylvania; Dr. Penny Rue, Vice President for 
Campus Life, Wake Forest University, Winston-Salem, North 
Carolina; Ms. Lisa M. Maatz, M.A., Vice President for 
Government Relations, American Association of University Women, 
Washington, D.C.; and Mr. Joseph Cohn, Legislative and Policy 
Director, Foundation for Individual Rights in Education, 
Philadelphia, Pennsylvania.
    On November 18, 2015, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training, together with the House Committee on Oversight and 
Government Reform Subcommittee on Government Operations held a 
hearing in Washington, D.C., on ``Federal Student Aid: 
Performance-Based Organization Review.'' The purpose of the 
hearing was to review the Office of Federal Student Aid's (FSA) 
responsibilities as a Performance-Based Organization (PBO), 
evaluate the PBO's performance, and identify possible areas of 
reform. Testifying before the subcommittees were Mr. James 
Runcie, Chief Operating Officer, U.S. Department of Education, 
Washington, D.C.; Ms. Melissa Emrey-Arras, Director, Education 
Workforce, and Income Security, U.S. Government Accountability 
Office, Washington, D.C.; The Honorable Kathleen Tighe, 
Inspector General, U.S. Department of Education, Washington, 
D.C.; Mr. Ben Miller, Senior Director, Postsecondary Education, 
Center for American Progress, Washington, D.C.; and Mr. Justin 
Draeger, President, National Association of Student Financial 
Aid Administrators, Washington, D.C.

Legislative action--First session

    On July 23, 2015, Higher Education and Workforce Training 
Subcommittee Chairwoman Virginia Foxx along with Chairman John 
Kline (R-MN), Ranking Member Robert C. Scott (D-VA), and Reps. 
Luke Messer (R-IN), Gregorio Sablan (D-MP), Tim Walberg (R-MI), 
Joe Heck (R-NV), Buddy Carter (R-GA), Elise Stefanik (R-NY), 
Susan Davis (D-CA), Raul Grijalva (D-AZ), and Mark DeSaulnier 
(D-CA) introduced H.R. 3178, the Strengthening Transparency in 
Higher Education Act. The bill ensures straightforward and 
useful information is easily accessible to students and parents 
and improves coordination between federal agencies to publish 
information about colleges and universities.
    On July 23, 2015, Rep. Brett Guthrie (R-KY) along with 
Chairman John Kline (R-MN), Ranking Member Robert C. Scott (D-
VA), and Reps. Rick Allen (R-GA), Suzanne Bonamici (D-OR), 
Duncan Hunter (R-CA), Tim Walberg (R-MI), Joe Heck (R-NV), Luke 
Messer (R-IN), Buddy Carter (R-GA), Elise Stefanik (R-NY), 
Susan Davis (D-CA), Raul Grijalva (D-AZ), Gregorio Sablan (D-
MP), Mark Pocan (D-WI), Mark Takano (D-CA), Katherine Clark (D-
MA), Mark DeSaulnier (D-CA), and Richard Hudson (R-NC) 
introduced H.R. 3179, the Empowering Students Through Enhanced 
Financial Counseling Act. The bill promotes financial literacy 
through enhanced counseling for all recipients of federal 
financial aid.
    On September 24, 2015, Reps. Mike Bishop (R-MI) and Mark 
Pocan (D-WI) introduced H.R. 3594, the Higher Education 
Extension Act of 2015. The bill extends the authorization of 
the National Advisory Committee on Institutional Quality and 
Integrity and the authority of institutions of higher education 
to make loans to new borrowers under the federal Perkins loan 
program through September 30, 2016.
    On September 28, 2015, the House of Representatives passed 
H.R. 3594 by a voice vote. The bill was sent to the Senate and 
referred to the Senate Committee on Health, Education, Labor, 
and Pensions. The Senate amended the bill to extend the 
authorization of the federal Perkins loan program to September 
30, 2017. The amendment was adopted by unanimous consent, and 
the underlying legislation was subsequently passed in the 
Senate on December 16, 2015, by voice vote.
    On December 17, 2015, the House agreed to the Senate 
amendment by unanimous consent. The Higher Education Extension 
Act of 2015 was signed into law by the President on December 
18, 2015.

Legislative action--Second session

    On June 22, 2016, the Committee on Education and the 
Workforce considered H.R. 3178 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by voice vote. The Committee considered and 
adopted the following amendment to H.R. 3178:
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to make 
conforming and technical changes. The amendment was adopted by 
voice vote.
    On June 22, 2016, the Committee considered H.R. 3179 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by voice vote. The Committee 
considered and adopted the following amendment to H.R. 3179:
     Rep. Brett Guthrie (R-KY) offered an amendment in 
the nature of a substitute to make conforming and technical 
changes. The amendment was adopted by voice vote.
    On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps. 
David ``Phil'' Roe (R-TN), Jared Polis (D-CO), and Mark Pocan 
(D-WI) introduced H.R. 5528, the Simplifying the Application 
for Student Aid Act. The bill ensures continued allowance for 
earlier notification of federal student aid, leverages 
technology to make the application for federal student aid more 
accessible and easier to fill out, and provides more time for 
aid administrators to verify and package student aid.
    On June 22, 2016, the Committee considered H.R. 5528 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by voice vote. The Committee 
considered and adopted the following amendment to H.R. 5528:
     Rep. Joe Heck (R-NV) offered an amendment in the 
nature of a substitute to make conforming and technical 
changes. The amendment was adopted by voice vote.
    On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps. 
Ruben Hinojosa (D-TX) and Raul Ruiz (D-CA) introduced H.R. 
5529, the Accessing Higher Education Opportunities Act. The 
bill expands the authorized uses of funds for Hispanic-Serving 
Institutions (HSIs) so they may promote dual enrollment 
opportunities and encourage Hispanic students to pursue 
doctoral degree programs in the healthcare industry.
    On June 22, 2016, the Committee considered H.R. 5529 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by voice vote. The Committee 
considered and adopted the following amendment to H.R. 5529:
     Rep. Joe Heck (R-NV) offered an amendment in the 
nature of a substitute to make conforming and technical 
changes. The amendment was adopted by voice vote.
    On June 20, 2016, Reps. Alma Adams (D-NC) and Bradley Byrne 
(R-AL) introduced H.R. 5530, the HBCU Capital Financing 
Improvement Act. The bill improves the program by requiring the 
advisory board to send an annual report to Congress regarding 
the status of the Historically Black College and University 
(HBCU) Capital Financing Program. Additionally, the bill 
renames the escrow account to ``bond insurance fund.'' Lastly, 
this bill allows for financial counseling to potential eligible 
HBCUs to assist in their preparation to qualify, apply for, and 
maintain a capital improvement loan.
    On June 22, 2016, the Committee considered H.R. 5530 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by voice vote. The Committee 
considered and adopted the following amendment to H.R. 5530:
     Rep. Alma Adams (D-NC) offered an amendment in the 
nature of a substitute to make conforming and technical 
changes. The amendment was adopted by voice vote.

                                Summary

    The Empowering Students through Enhanced Financial 
Counseling Act creates a roadmap to repayment for borrowers by 
improving the timing and frequency of loan counseling and 
allows counseling to be tailored to a borrower's individual 
situation. The legislation ensures both student and parent 
borrowers have the most current information by requiring annual 
counseling before they take out loans.
    The legislation requires annual counseling for student 
borrowers to include recommendations to exhaust available 
grant, work-study, and scholarship assistance before taking out 
loans, as well as a recommendation to exhaust federal student 
loan options before taking out a private loan. The counseling 
must also include a notice informing borrowers they are not 
required to accept the full amount of the loan they are offered 
and information on any outstanding federal loan balance the 
borrower may have. Based on that outstanding balance and any 
new loans being taken out, the information must include 
anticipated monthly payments under standard and income-based 
repayment plans.
    The legislation requires counseling for borrowers of Parent 
PLUS loans on behalf of dependent students. Similar to 
counseling for student borrowers, the counseling will provide 
parent borrowers individualized information on their 
outstanding loan balance and on anticipated monthly payments. 
The counseling will also include debt management strategies, 
information on the National Student Loan Data System, and 
contact information for the servicer of each loan.
    Additionally, the legislation bolsters exit counseling for 
students. Exit counseling under the bill will include 
information on the borrower's outstanding loan balance, 
anticipated monthly payments under the standard and income-
based repayment plans, the grace period preceding repayment, as 
well as contact information for those organizations servicing 
the borrower's loans. This information will empower borrowers 
to make smart financial decisions as they leave school and 
begin to repay their college loan commitments.
    The legislation requires colleges annually to provide 
important counseling and disclosures to Pell Grant recipients. 
A Pell Grant recipient will receive counseling on the terms and 
conditions of his or her grant; the approved educational 
expenses to which the grant could be applied; the maximum 
length of time a student is eligible to receive Pell Grants; 
the amount of assistance a student is eligible to receive; a 
notice that Pell Grant eligibility is not reset when a student 
transfers institutions; conditions under which a student may be 
required to repay a Pell Grant; and how a student may seek 
additional assistance due to a change in his or her financial 
circumstances. All aid recipients will also receive state-
specific information on the average income and employment 
status of individuals based on various levels of educational 
attainment, and Pell Grant recipients and student borrowers 
will receive an introduction to the Financial Literacy and 
Education Commission's financial management resources.
    The legislation requires the Secretary to maintain a 
consumer-tested, online counseling tool institutions could use 
to provide required counseling to their students. Institutions 
could choose to use this tool to provide their students 
financial counseling or they could offer institution-created 
counseling directly to their students, either during an in-
person session or through an online tool created for the 
institution.
    Finally, the legislation directs the Secretary, acting 
through the Director of IES, to conduct a longitudinal study of 
the impact and effectiveness of the new annual counseling, 
updated exit counseling, and online counseling tool, as well as 
counseling provided through other means determined by the 
Secretary. The evaluation will also explore how counseling 
affects outcomes for students of different races, ethnicities, 
genders, and income levels.

                            Committee Views

Introduction

    With tuition increasing and economic pressures faced by 
graduates mounting, responsibly financing a higher education 
has never been more critical. However, many students and 
parents are unprepared to navigate the complex maze of loans 
and grants offered by the federal government, states, the 
private sector, and institutions of higher education. Further, 
upon graduation, many borrowers also struggle to manage the 
repayment of the loans used to finance their education, leading 
to significant financial hardship and greater risk for 
taxpayers. Student financial literacy is vital to reversing 
this trend, yet current efforts are failing to equip students 
and parents with the crucial information they need to make wise 
financial decisions.
    Many students never receive meaningful financial literacy 
assistance as they review options for paying for college. The 
Higher Education Act currently requires counseling for only 
those students receiving federal student loans, while parents 
who take out loans on behalf of their student as well as 
students who receive only a Pell Grant do not receive any 
counseling. More robust and timely financial literacy support 
must be made available.

Enhancing loan counseling for students

    To help students make smart decisions about financing their 
higher education, Reps. Brett Guthrie (R-KY), Rick Allen (R-
GA), and Suzanne Bonamici (D-OR) introduced H.R. 3179, the 
Empowering Students through Enhanced Financial Counseling Act. 
H.R. 3179 improves the timing and frequency of loan counseling 
and ensures students have the most current information 
available to them. Under current law, students who receive 
federal student loans are required to complete one-time 
entrance counseling only regarding the terms and conditions of 
their loans. This counseling is only required to occur prior to 
disbursement of the loan, so many students receive it after 
they have already decided how much to borrow. During a November 
13, 2013, hearing entitled ``Keeping College Within Reach: 
Simplifying Federal Student Aid,'' the Committee explored 
opportunities to streamline the federal aid system for 
students. At the hearing, Ms. Jennifer Mishory, Deputy Director 
of Young Invincibles, highlighted the need for enhanced and 
more frequent financial aid counseling:

          In a recent Young Invincibles survey, 40 percent of 
        high-debt borrower respondents reported that they did 
        not receive federally mandated loan counseling. It is 
        perhaps unlikely that so many schools are out of 
        compliance, but that statistic warns us that many young 
        people benefit so little from loan counseling that they 
        do not remember receiving it--or did not consider what 
        they received to constitute counseling.

    With student loan default rates on the rise, the Committee 
believes students should be given a complete picture of not 
only their rights and obligation with respect to their federal 
loans, but also the impact taking out loans may have on their 
financial futures each year--before they accept a new round of 
student loans. H.R. 3179 requires loan counseling to occur 
annually before a student accepts a federal student loan for 
the year. The legislation also requires counseling be 
personalized to the individual borrower's situation, rather 
than just providing general information applicable to a range 
of borrowers. In the course of just one school year, Indiana 
University was able to reduce undergraduate Stafford loan 
disbursements by 11 percent, or $31 million, by telling 
students annually what their monthly payment would be after 
graduation before they took out loans for the next year. This 
was more than five times the decrease in outlays at four-year 
public institutions nationally.\1\ Data also show borrower 
defaults concentrate around the millions of students with 
smaller debts who drop out without a degree. In fact, 34 
percent of those borrowing under $5,000 for college eventually 
end up in default.\2\ Annual counseling that includes 
individualized anticipated monthly payments under income-based 
repayment can help student borrowers who do not complete 
college avoid these harmful defaults. The Committee believes 
better information about loans and the post-college obligations 
and responsibilities that come with those loans will help 
students make wise borrowing decisions.
---------------------------------------------------------------------------
    \1\http://www.bloomberg.com/news/2014-07-03/here-s-how-indiana-
university-students-borrowed-31-million-less.html.
    \2\http://www.nytimes.com/2015/09/01/upshot/why-students-with-
smallest-debts-need-the-greatest-help.html.
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    During a March 17, 2015, Committee on Education and 
Workforce Subcommittee on Higher Education and Workforce 
Training hearing entitled ``Strengthening America's Higher 
Education System,'' Michael J. Bennett, Associate Vice 
President of Financial Assistance Services at St. Petersburg 
College in Florida, highlighted the complexity of the federal 
student loan system, the confusion students often face, and the 
need for enhanced loan counseling:

          One online entrance and exit counseling session is 
        not enough for some students to fully understand the 
        realities of excessive debt and over-borrowing. . . . 
        We also must embrace at the institutional level the 
        importance of financial literacy. And lastly and most 
        importantly, these initiatives and simplification 
        efforts must be paired with the availability of 
        personalized, comprehensive financial education 
        services to help students.

    About 61 percent of students who earned bachelor's degrees 
in the 2013-2014 academic year from the public and private 
nonprofit four-year schools at which they began their studies 
graduated with debt, and that debt averaged $26,900--a 17 
percent increase since the 2003-2004 academic year.\3\ In 
addition, during the 2011-2012 academic year, roughly half of 
private loan borrowers did not exhaust federal Stafford loan 
options before taking out private student loans.\4\ The 
Committee is concerned about the growing amount of student loan 
debt in the country and wants to ensure students are aware of 
the terms and conditions of their student loans and the 
differences between options that may be available to them. 
Annual counseling will now include recommendations for students 
to exhaust available grant, work-study, and scholarship 
assistance before taking out loans, a recommendation to exhaust 
federal student loan options before taking out a private loan, 
and an explanation of the rights and obligations associated 
with a private loan. The counseling will also include a notice 
that students are not required to accept the full amount of the 
federal student loan offered and information on any outstanding 
federal student loan balance the borrower may have.
---------------------------------------------------------------------------
    \3\3http://trends.collegeboard.org/sites/default/files/trends-
student-aid-web-final-508-2.pdf. p. 4.
    \4\http://ticas.org/sites/default/files/pub_files/
private_loan_facts_trends.pdf.
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    The Committee believes information should be available to 
help students make the most informed decisions about ways to 
finance their postsecondary education and encourages the 
Secretary of Education to make annual percentage rates of 
federal student loans under part D of the Higher Education Act 
publically available to current and prospective borrowers. The 
Committee feels annual percentage rates will provide borrowers 
with accurate rates for their federal student loans, 
particularly as it relates to grad and parent PLUS loans, so 
they will not be surprised by the fees associated with them.
    The Committee also believes there is other important 
information apart from rates that students should both be aware 
of and have access to when making these decisions. Federal 
loans for example, offer income-based repayment plans, loan 
forgiveness options, eligibility for deferment or forbearance, 
fixed interest rates, eligibility for a direct consolidation 
loan, and most do not require a credit check. A system designed 
to help students make informed choices should include these 
benefits as well as annual percentage rates to help borrowers 
determine which loan is best for them.
    H.R. 3179 also requires more robust exit counseling. Under 
current law, students who receive federal student loans must 
complete exit counseling before they conclude their course of 
study. This counseling must include information on available 
repayment plans, debt management strategies, and loan 
forgiveness options; however, this counseling is very general 
and does not provide any information on the borrower's specific 
situation. Under H.R. 3179, exit counseling includes a 
statement of the borrower's outstanding loan balance; 
anticipated monthly payments based on the borrower's actual 
balance under both the standard repayment plan and income-based 
repayment plan, based on the borrower's anticipated salary; 
information on the grace period preceding repayment; and 
contact information for those organizations servicing the 
borrower's loans. The Committee believes this additional 
information empowers borrowers to make smarter financial 
decisions as they leave school and begin to repay their college 
loan commitments.

Parent PLUS borrowers

    Parents taking out a federal loan to help their children 
achieve the dream of a postsecondary education comprised over 
11 percent of federal student loan volume disbursed last 
year.\5\ Parent borrowers are subject to the majority of the 
same terms, conditions, and responsibilities as student 
borrowers, but they can borrow up to the cost of attendance--
much more than the typical student borrower. However, parent 
borrowers currently receive very little information about their 
loan obligations or assistance in planning for repayment. The 
Committee believes providing to parents the same information 
and disclosures students receive prior to taking out a loan is 
crucial for encouraging smart borrowing and on-time repayment. 
The Empowering Students through Enhanced Financial Counseling 
Act requires annual counseling for all borrowers of a Parent 
PLUS loan prior to, or in conjunction with, the acceptance of 
the Parent PLUS loan.
---------------------------------------------------------------------------
    \5\http://trends.collegeboard.org/sites/default/files/trends-
student-aid-web-final-508-2.pdf.
---------------------------------------------------------------------------
    In 2014, the U.S. Department of Education released three-
year cohort default rates for borrowers of Parent PLUS loans 
that covered a multi-year period from FY 2006-FY 2010. The most 
current cohort default rate for borrowers who had a student at 
any type of school was 4.1 percent, up from 1.8 percent in 
2006.\6\ To stop this upward trend, the Committee believes 
these parent borrowers should be provided with counseling each 
year they wish to take out an additional loan. Similar to 
counseling for student borrowers, the counseling will provide 
parent borrowers individualized information on their 
outstanding loan balance and anticipated monthly payments based 
on the actual balance. The counseling will also include debt 
management strategies, information on the National Student Loan 
Data System, and contact information for the servicer of each 
of their loans.
---------------------------------------------------------------------------
    \6\http://www2.ed.gov/policy/highered/reg/hearulemaking/2012/
programintegrity.html.
---------------------------------------------------------------------------

Better information for Pell Grant recipients

    The Empowering Students through Enhanced Financial 
Counseling Act requires all recipients of a Pell Grant to 
receive annual disclosures on the terms and conditions of their 
grants. The disclosures will include information on the 
approved educational expenses to which the grants could be 
applied, the conditions under which a student may be required 
to repay Pell Grants, and how students may seek additional 
assistance due to changes in their financial circumstances. 
Additionally, the disclosures will provide students with 
information on the maximum number of semesters, or the 
equivalent, for which they may be eligible to receive Pell 
Grants, as well as a statement of the actual amount of time 
remaining for which they personally may be eligible, and a 
notice that Pell Grant eligibility does not reset when a 
student transfers schools. The information will ensure students 
are aware of their time-limited eligibility to receive Pell 
Grants and would encourage them to complete their academic 
program prior to exhausting their eligibility for the program. 
The Committee recognizes the important role the Pell Grant 
program plays in helping low-income students access and 
complete a postsecondary education and does not intend for this 
counseling to be a hurdle for students to receive their grants. 
H.R. 3179 ensures those students have the knowledge needed to 
use their Pell Grant eligibility in the most effective way 
possible.

Developing a consumer-tested online tool

    A recent study on federally mandated student loan 
counseling that examined actual borrowers going through the 
federal government's online counseling tool found borrowers 
thought the tool to be too text heavy and wanted more 
personalized information.\7\ The Committee appreciates the work 
the U.S. Department of Education has done in creating the 
Financial Awareness Counseling tool but believes more can be 
done to make the tool more relevant and meaningful for 
borrowers. The Empowering Students through Enhanced Financial 
Counseling Act requires the Secretary to maintain an online 
counseling tool institutions can use to provide required 
counseling to their students. The Committee expects the U.S. 
Department of Education to build upon the existing tool to meet 
this requirement of the legislation. Additionally, H.R. 3179 
requires the Department to conduct consumer testing of the 
online financial aid counseling tool, in consultation with 
other relevant federal agencies, to ensure the information 
provided through the tool is presented in the most user-
friendly manner possible to better assist students and parents 
in understanding their rights and obligations with respect to 
borrowing student loans or receiving Pell Grants.
---------------------------------------------------------------------------
    \7\http://chronicle.com/blogs/headcount/new-research-points-to-
gaps-in-student-loan-counseling/
38665?cid=at&utm_source=at&utm_medium=en.
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    Recognizing some institutions already provide their 
students with robust loan counseling, H.R. 3179 allows 
institutions to choose the manner in which they provide 
counseling to their students and parents. Institutions have the 
option to provide financial counseling directly, either during 
an in-person session or through an online tool created for or 
by the institution, or an institution can elect to have the 
students use the consumer-tested online tool administered by 
the Department. If an institution opts to provide the 
counseling themselves, the Committee notes an institution will 
meet the requirements under H.R. 3179 by contracting with 
entities that have experience in offering this type of 
counseling to students, such as guaranty agencies. If an 
institution chooses to use the U.S. Department of Education's 
online tool, the Department will then be responsible for 
keeping a record of which individuals have completed counseling 
and notifying borrowers of the obligation to complete the 
counseling.

Ensuring counseling is effective

    The Empowering Students through Enhanced Financial 
Counseling Act directs the Secretary, acting through the 
Director of IES, to conduct a rigorous longitudinal study of 
the impact and effectiveness of loan counseling on student 
persistence, program completion, successful entry into 
repayment, and cumulative borrowing, among other factors. The 
evaluation will explore how counseling affects outcomes for 
students of different races, ethnicities, genders, and income 
levels. This study is intended to help inform Congress, the 
Secretary, and institutions of whether further policy changes 
need to be made to promote successful outcomes.

Conclusion

    The current financial counseling policies are inadequate 
for providing student and parent borrowers with the information 
they need to plan for college costs and responsibly manage 
their loan repayment. Currently, counseling occurs too late to 
guide students' decisions for smart borrowing and too 
infrequently to make a lasting impression about the 
implications of student debt. The Empowering Students through 
Enhanced Financial Counseling Act provides students and parents 
the tools and information they need to borrow and repay their 
student loans in a responsible way.

                      Section-by-Section Analysis

Section 1. Short title

    States the short title is the Empowering Students through 
Enhanced Financial Counseling Act.

Section 2. Annual counseling

    Amends section 485(l) of the Higher Education Act to 
require institutions to ensure each individual who receives a 
federal student loan also receives interactive annual 
counseling on the terms, conditions, and responsibilities of 
such loan. Likewise, Pell Grant recipients will receive annual 
counseling on the terms, conditions, and responsibilities of 
their grants.
    Requires institutions to ensure, as a part of carrying out 
the counseling requirements, all federal student loan borrowers 
annually affirmatively accept new loans prior to the 
disbursement of those loans.

Section 3. Exit counseling

    Amends section 485(b) of the Higher Education Act to ensure 
students who receive federal student loans receive 
individualized, interactive exit counseling regarding their 
loan portfolios and repayment options.

Section 4. Online counseling tools

    Requires the Secretary to maintain consumer-tested online 
counseling tools that provide the required annual and exit 
counseling.

Section 5. Longitudinal study on the effectiveness of student loan 
        counseling

    Requires the Secretary, acting through the Director of IES, 
to begin conducting a rigorous, longitudinal study of the 
impact and effectiveness of the counseling under section 
485(b), (l), and (n), as well as counseling provided through 
other means determined by the Secretary. Requires the Secretary 
to report findings to the appropriate committees of Congress no 
later than 18 months after the study's commencement and 
annually thereafter.

Section 6. Availability of funds

    Reserves $2 million from funding authorized to be 
appropriated for maintaining the U.S. Department of Education's 
Financial Awareness Counseling tool to be available to carry 
out this legislation and specifies no additional funds are 
authorized to be appropriated by this legislation.

                       Explanation of Amendments

    The amendments, including the amendment in the nature of a 
substitute, are explained in the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 3179, the Empowering Students through Enhanced 
Financial Counseling Act, promotes financial literacy through 
enhanced counseling for recipients of federal financial aid.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. This issue is addressed in the CBO letter.

                           Earmark Statement

    H.R. 3179 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of House Rule XXI.

         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House Rule XIII, the 
goals of H.R. 3179 are to promote financial literacy through 
enhanced counseling for recipients of federal financial aid.

                    Duplication of Federal Programs

    No provision of H.R. 3179 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The committee estimates that enacting H.R. 3179 does not 
specifically direct the completion of any specific rule makings 
within the meaning of 5 U.S.C. 551.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the committee's oversight findings and recommendations are 
reflected in the body of this report.

               New Budget Authority and CBO Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the committee has received 
the following estimate for H.R. 3179 from the Director of the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 5, 2016.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3179, the 
Empowering Students Through Enhanced Financial Counseling Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Justin 
Humphrey.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 3179--Empowering Students Through Enhanced Financial Counseling 
        Act

    H.R. 3179 would reserve $2 million from funding for the 
Department of Education to change the requirements for 
counseling students who participate in the federal student aid 
programs, such as federal student loans and Pell grants, and to 
study the effectiveness of that counseling.
    CBO estimates that implementing H.R. 3179 would cost $2 
million for the department's administrative expenses over the 
2017-2021 period; such spending would be subject to the 
availability of appropriated funds.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 3179 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 3179 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Justin Humphrey. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 3179. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

HIGHER EDUCATION ACT OF 1965

           *       *       *       *       *       *       *

TITLE IV--STUDENT ASSISTANCE

           *       *       *       *       *       *       *

Part G--General Provisions Relating to Student Assistance Programs

           *       *       *       *       *       *       *

SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
                    STUDENTS.

  (a) Information Dissemination Activities.--(1) Each eligible 
institution participating in any program under this title shall 
carry out information dissemination activities for prospective 
and enrolled students (including those attending or planning to 
attend less than full time) regarding the institution and all 
financial assistance under this title. The information required 
by this section shall be produced and be made readily available 
upon request, through appropriate publications, mailings, and 
electronic media, to an enrolled student and to any prospective 
student. Each eligible institution shall, on an annual basis, 
provide to all enrolled students a list of the information that 
is required to be provided by institutions to students by this 
section and section 444 of the General Education Provisions Act 
(commonly known as the ``Family Educational Rights and Privacy 
Act of 1974''), together with a statement of the procedures 
required to obtain such information. The information required 
by this section shall accurately describe--
          (A) the student financial assistance programs 
        available to students who enroll at such institution;
          (B) the methods by which such assistance is 
        distributed among student recipients who enroll at such 
        institution;
          (C) any means, including forms, by which application 
        for student financial assistance is made and 
        requirements for accurately preparing such application;
          (D) the rights and responsibilities of students 
        receiving financial assistance under this title;
          (E) the cost of attending the institution, including 
        (i) tuition and fees, (ii) books and supplies, (iii) 
        estimates of typical student room and board costs or 
        typical commuting costs, and (iv) any additional cost 
        of the program in which the student is enrolled or 
        expresses a specific interest;
          (F) a statement of--
                  (i) the requirements of any refund policy 
                with which the institution is required to 
                comply;
                  (ii) the requirements under section 484B for 
                the return of grant or loan assistance provided 
                under this title; and
                  (iii) the requirements for officially 
                withdrawing from the institution;
          (G) the academic program of the institution, 
        including (i) the current degree programs and other 
        educational and training programs, (ii) the 
        instructional, laboratory, and other physical plant 
        facilities which relate to the academic program, (iii) 
        the faculty and other instructional personnel, and (iv) 
        any plans by the institution for improving the academic 
        program of the institution;
          (H) each person designated under subsection (c) of 
        this section, and the methods by which and locations in 
        which any person so designated may be contacted by 
        students and prospective students who are seeking 
        information required by this subsection;
          (I) special facilities and services available to 
        students with disabilities;
          (J) the names of associations, agencies, or 
        governmental bodies which accredit, approve, or license 
        the institution and its programs, and the procedures 
        under which any current or prospective student may 
        obtain or review upon request a copy of the documents 
        describing the institution's accreditation, approval, 
        or licensing;
          (K) the standards which the student must maintain in 
        order to be considered to be making satisfactory 
        progress, pursuant to section 484(a)(2);
          (L) the completion or graduation rate of certificate- 
        or degree-seeking, full-time, undergraduate students 
        entering such institutions;
                  (M) the terms and conditions of the loans 
                that students receive under parts B, D, and E;
          (N) that enrollment in a program of study abroad 
        approved for credit by the home institution may be 
        considered enrollment in the home institution for 
        purposes of applying for Federal student financial 
        assistance;
          (O) the campus crime report prepared by the 
        institution pursuant to subsection (f), including all 
        required reporting categories;
                  (P) institutional policies and sanctions 
                related to copyright infringement, including--
                          (i) an annual disclosure that 
                        explicitly informs students that 
                        unauthorized distribution of 
                        copyrighted material, including 
                        unauthorized peer-to-peer file sharing, 
                        may subject the students to civil and 
                        criminal liabilities;
                          (ii) a summary of the penalties for 
                        violation of Federal copyright laws; 
                        and
                          (iii) a description of the 
                        institution's policies with respect to 
                        unauthorized peer-to-peer file sharing, 
                        including disciplinary actions that are 
                        taken against students who engage in 
                        unauthorized distribution of 
                        copyrighted materials using the 
                        institution's information technology 
                        system;
                  (Q) student body diversity at the 
                institution, including information on the 
                percentage of enrolled, full-time students 
                who--
                          (i) are male;
                          (ii) are female;
                          (iii) receive a Federal Pell Grant; 
                        and
                          (iv) are a self-identified member of 
                        a major racial or ethnic group;
                  (R) the placement in employment of, and types 
                of employment obtained by, graduates of the 
                institution's degree or certificate programs, 
                gathered from such sources as alumni surveys, 
                student satisfaction surveys, the National 
                Survey of Student Engagement, the Community 
                College Survey of Student Engagement, State 
                data systems, or other relevant sources;
                  (S) the types of graduate and professional 
                education in which graduates of the 
                institution's four-year degree programs 
                enrolled, gathered from such sources as alumni 
                surveys, student satisfaction surveys, the 
                National Survey of Student Engagement, State 
                data systems, or other relevant sources;
                  (T) the fire safety report prepared by the 
                institution pursuant to subsection (i);
                  (U) the retention rate of certificate- or 
                degree-seeking, first-time, full-time, 
                undergraduate students entering such 
                institution; and
                  (V) institutional policies regarding 
                vaccinations.
  (2) For the purpose of this section, the term ``prospective 
student'' means any individual who has contacted an eligible 
institution requesting information concerning admission to that 
institution.
  (3) In calculating the completion or graduation rate under 
subparagraph (L) of paragraph (1) of this subsection or under 
subsection (e), a student shall be counted as a completion or 
graduation if, within 150 percent of the normal time for 
completion of or graduation from the program, the student has 
completed or graduated from the program, or enrolled in any 
program of an eligible institution for which the prior program 
provides substantial preparation. The information required to 
be disclosed under such subparagraph--
          (A) shall be made available by July 1 each year to 
        enrolled students and prospective students prior to the 
        students enrolling or entering into any financial 
        obligation; and
          (B) shall cover the one-year period ending on August 
        31 of the preceding year.
          (4) For purposes of this section, institutions may--
                  (A) exclude from the information disclosed in 
                accordance with subparagraph (L) of paragraph 
                (1) the completion or graduation rates of 
                students who leave school to serve in the Armed 
                Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government; or
                  (B) in cases where the students described in 
                subparagraph (A) represent 20 percent or more 
                of the certificate- or degree-seeking, full-
                time, undergraduate students at the 
                institution, recalculate the completion or 
                graduation rates of such students by excluding 
                from the calculation described in paragraph (3) 
                the time period during which such students were 
                not enrolled due to their service in the Armed 
                Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government.
  (5) The Secretary shall permit any institution of higher 
education that is a member of an athletic association or 
athletic conference that has voluntarily published completion 
or graduation rate data or has agreed to publish data that, in 
the opinion of the Secretary, is substantially comparable to 
the information required under this subsection, to use such 
data to satisfy the requirements of this subsection; and
  (6) Each institution may provide supplemental information to 
enrolled and prospective students showing the completion or 
graduation rate for students described in paragraph (4) or for 
students transferring into the institution or information 
showing the rate at which students transfer out of the 
institution.
          (7)(A)(i) Subject to clause (ii), the information 
        disseminated under paragraph (1)(L), or reported under 
        subsection (e), shall be disaggregated by gender, by 
        each major racial and ethnic subgroup, by recipients of 
        a Federal Pell Grant, by recipients of a loan made 
        under part B or D (other than a loan made under section 
        428H or a Federal Direct Unsubsidized Stafford Loan) 
        who did not receive a Federal Pell Grant, and by 
        recipients of neither a Federal Pell Grant nor a loan 
        made under part B or D (other than a loan made under 
        section 428H or a Federal Direct Unsubsidized Stafford 
        Loan), if the number of students in such subgroup or 
        with such status is sufficient to yield statistically 
        reliable information and reporting will not reveal 
        personally identifiable information about an individual 
        student. If such number is not sufficient for such 
        purposes, then the institution shall note that the 
        institution enrolled too few of such students to so 
        disclose or report with confidence and confidentiality.
          (ii) The requirements of clause (i) shall not apply 
        to two-year, degree-granting institutions of higher 
        education until academic year 2011-2012.
          (B)(i) In order to assist two-year degree-granting 
        institutions of higher education in meeting the 
        requirements of paragraph (1)(L) and subsection (e), 
        the Secretary, in consultation with the Commissioner 
        for Education Statistics, shall, not later than 90 days 
        after the date of enactment of the Higher Education 
        Opportunity Act, convene a group of representatives 
        from diverse institutions of higher education, experts 
        in the field of higher education policy, state higher 
        education officials, students, and other stakeholders 
        in the higher education community, to develop 
        recommendations regarding the accurate calculation and 
        reporting of the information required to be 
        disseminated or reported under paragraph (1)(L) and 
        subsection (e) by two-year, degree-granting 
        institutions of higher education. In developing such 
        recommendations, the group of representatives shall 
        consider the mission and role of two-year degree-
        granting institutions of higher education, and may 
        recommend additional or alternative measures of student 
        success for such institutions in light of the mission 
        and role of such institutions.
          (ii) The Secretary shall widely disseminate the 
        recommendations required under this subparagraph to 
        two-year, degree-granting institutions of higher 
        education, the public, and the authorizing committees 
        not later than 18 months after the first meeting of the 
        group of representatives convened under clause (i).
          (iii) The Secretary shall use the recommendations 
        from the group of representatives convened under clause 
        (i) to provide technical assistance to two-year, 
        degree-granting institutions of higher education in 
        meeting the requirements of paragraph (1)(L) and 
        subsection (e).
          (iv) The Secretary may modify the information 
        required to be disseminated or reported under paragraph 
        (1)(L) or subsection (e) by a two-year, degree-granting 
        institution of higher education--
                  (I) based on the recommendations received 
                under this subparagraph from the group of 
                representatives convened under clause (i);
                  (II) to include additional or alternative 
                measures of student success if the goals of the 
                provisions of paragraph (1)(L) and subsection 
                (e) can be met through additional means or 
                comparable alternatives; and
                  (III) during the period beginning on the date 
                of enactment of the Higher Education 
                Opportunity Act, and ending on June 30, 2011.
  (b) Exit Counseling for Borrowers.--(1)(A) Each eligible 
institution shall, [through financial aid offices or otherwise] 
through the use of an interactive program, during an exit 
counseling session that is in-person or online, or through the 
use of the online counseling tool described in subsection 
(n)(1)(A), provide counseling to borrowers of loans that are 
made, insured, or guaranteed under part B (other than loans 
made pursuant to section 428C or loans under section 428B made 
on behalf of a student) or made under part D (other than 
Federal Direct Consolidation Loans or Federal Direct PLUS Loans 
made on behalf of a student) or made under part E of this title 
prior to the completion of the course of study for which the 
borrower enrolled at the institution or at the time of 
departure from such institution. The counseling required by 
this subsection shall include--
          (i) a summary of the outstanding balance of principal 
        and interest due on the loans made to the borrower 
        under part B, D, or E;
          (ii) an explanation of the grace period preceding 
        repayment and the expected date that the borrower will 
        enter repayment;
          (iii) an explanation that the borrower has the option 
        to pay any interest that has accrued while the borrower 
        was in school or that may accrue during the grace 
        period preceding repayment or during an authorized 
        period of deferment or forbearance, prior to the 
        capitalization of the interest;
          [(i)] (iv) information on the repayment plans 
        available, including a description of the different 
        features [of each plan] of at least the standard 
        repayment plan and the income-based repayment plan 
        under section 493C and [sample information showing the 
        average] information, based on the borrower's 
        outstanding balance described in clause (i), showing 
        the borrower's anticipated monthly payments, and the 
        difference in interest paid and total payments, under 
        each plan;
          [(ii)] (v) debt management strategies that are 
        designed to facilitate the repayment of such 
        indebtedness;
          [(iii)] (vi) an explanation that the borrower has the 
        options to prepay each loan, pay each loan on a shorter 
        schedule, and change repayment plans;
          [(iv)] (vii) for any loan forgiveness or cancellation 
        provision of this title, a general description of the 
        terms and conditions under which the borrower may 
        obtain full or partial forgiveness or cancellation of 
        the principal and interest, and a copy of the 
        information provided by the Secretary under section 
        485(d);
          [(v)] (viii) for any forbearance provision of this 
        title, a general description of the terms and 
        conditions under which the borrower may defer repayment 
        of principal or interest or be granted forbearance, and 
        a copy of the information provided by the Secretary 
        under section 485(d);
          [(vi)] (ix) the consequences of defaulting on a loan, 
        including adverse credit reports, decreased credit 
        score, delinquent debt collection procedures under 
        Federal law, reduced ability to rent or purchase a home 
        or car, potential difficulty in securing employment, 
        and litigation;
          [(vii)] (x) information on the effects of using a 
        [consolidation loan under section 428C or a] Federal 
        Direct Consolidation Loan to discharge the borrower's 
        loans under parts B, D, and E, including at a minimum--
                  (I) the effects of consolidation on total 
                interest to be paid, fees to be paid, and 
                length of repayment;
                  (II) the effects of consolidation on a 
                borrower's underlying loan benefits, including 
                grace periods, loan forgiveness, cancellation, 
                and deferment opportunities;
                  (III) the option of the borrower to prepay 
                the loan or to change repayment plans; and
                  (IV) that borrower benefit programs may vary 
                among different lenders;
          [(viii)] (xi) a general description of the types of 
        tax benefits that may be available to borrowers; [and]
          [(ix)] (xii) a notice to borrowers about the 
        availability of the National Student Loan Data System 
        and how the system can be used by a borrower to obtain 
        information on the status of the borrower's loans; 
        [and]
          (xiii) for each of the borrower's loans made under 
        part B, D, or E for which the borrower is receiving 
        counseling under this subsection, the contact 
        information for the loan servicer of the loan and a 
        link to such servicer's Website; and
          (xiv) an explanation that an individual has a right 
        to annually request a disclosure of information 
        collected by a consumer reporting agency pursuant to 
        section 612(a) of the Fair Credit Reporting Act (15 
        U.S.C. 1681j(a)).
  (B) In the case of borrower who leaves an institution without 
the prior knowledge of the institution, the institution shall 
attempt to provide the information described in subparagraph 
(A) to the student online or in writing, except that in the 
case of an institution using the online counseling tool 
described in subsection (n)(1)(A), the Secretary shall attempt 
to provide such information to the student in the manner 
described in subsection (n)(3)(C).
  (2)(A) Each eligible institution shall require that the 
borrower of a loan made under part B, D, or E submit to the 
institution, during the exit interview required by this 
subsection--
          (i) the borrower's expected permanent address after 
        leaving the institution (regardless of the reason for 
        leaving);
          (ii) the name and address of the borrower's expected 
        employer after leaving the institution;
          (iii) the address of the borrower's next of kin; and
          (iv) any corrections in the institution's records 
        relating the borrower's name, address, social security 
        number, references, and driver's license number.
  (B) The institution shall, within 60 days after the 
interview, forward any corrected or completed information 
received from the borrower to the guaranty agency indicated on 
the borrower's student aid records.
  (C) Nothing in this subsection shall be construed to prohibit 
an institution of higher education from utilizing electronic 
means, such as the online counseling tool described in 
subsection (n)(1)(A), to provide personalized exit counseling.
  (c) Financial Assistance Information Personnel.--Each 
eligible institution shall designate an employee or group of 
employees who shall be available on a full-time basis to assist 
students or potential students in obtaining information as 
specified in subsection (a). The Secretary may, by regulation, 
waive the requirement that an employee or employees be 
available on a full-time basis for carrying out 
responsibilities required under this section whenever an 
institution in which the total enrollment, or the portion of 
the enrollment participating in programs under this title at 
that institution, is too small to necessitate such employee or 
employees being available on a full-time basis. No such waiver 
may include permission to exempt any such institution from 
designating a specific individual or a group of individuals to 
carry out the provisions of this section.
  (d) Departmental Publication of Descriptions of Assistance 
Programs.--(1) The Secretary shall make available to eligible 
institutions, eligible lenders, and secondary schools 
descriptions of Federal student assistance programs including 
the rights and responsibilities of student and institutional 
participants, in order to (A) assist students in gaining 
information through institutional sources, and (B) assist 
institutions in carrying out the provisions of this section, so 
that individual and institutional participants will be fully 
aware of their rights and responsibilities under such programs. 
In particular, such information shall include information to 
enable students and prospective students to assess the debt 
burden and monthly and total repayment obligations that will be 
incurred as a result of receiving loans of varying amounts 
under this title. Such information shall also include 
information on the various payment options available for 
student loans, including income-sensitive and income-based 
repayment plans for loans made, insured, or guaranteed under 
part B and income-contingent and income-based repayment plans 
for loans made under part D. In addition, such information 
shall include information to enable borrowers to assess the 
practical consequences of loan consolidation, including 
differences in deferment eligibility, interest rates, monthly 
payments, and finance charges, and samples of loan 
consolidation profiles to illustrate such consequences. The 
Secretary shall provide information concerning the specific 
terms and conditions under which students may obtain partial or 
total cancellation or defer repayment of loans for service, 
shall indicate (in terms of the Federal minimum wage) the 
maximum level of compensation and allowances that a student 
borrower may receive from a tax-exempt organization to qualify 
for a deferment, and shall explicitly state that students may 
qualify for such partial cancellations or deferments when they 
serve as a paid employee of a tax-exempt organization. The 
Secretary shall also provide information on loan forbearance, 
including the increase in debt that results from capitalization 
of interest. Such information shall be provided by eligible 
institutions and eligible lenders at any time that information 
regarding loan availability is provided to any student.
  (2) The Secretary, to the extent the information is 
available, shall compile information describing State and other 
prepaid tuition programs and savings programs and disseminate 
such information to States, eligible institutions, students, 
and parents in departmental publications.
  (3) The Secretary, to the extent practicable, shall update 
the Department's Internet site to include direct links to 
databases that contain information on public and private 
financial assistance programs. The Secretary shall only provide 
direct links to databases that can be accessed without charge 
and shall make reasonable efforts to verify that the databases 
included in a direct link are not providing fraudulent 
information. The Secretary shall prominently display adjacent 
to any such direct link a disclaimer indicating that a direct 
link to a database does not constitute an endorsement or 
recommendation of the database, the provider of the database, 
or any services or products of such provider. The Secretary 
shall provide additional direct links to information resources 
from which students may obtain information about fraudulent and 
deceptive practices in the provision of services related to 
student financial aid.
  (4) The Secretary shall widely publicize the location of the 
information described in paragraph (1) among the public, 
eligible institutions, and eligible lenders, and promote the 
use of such information by prospective students, enrolled 
students, families of prospective and enrolled students, and 
borrowers.
  (e) Disclosures Required With Respect to Athletically Related 
Student Aid.--(1) Each institution of higher education which 
participates in any program under this title and is attended by 
students receiving athletically related student aid shall 
annually submit a report to the Secretary which contains--
          (A) the number of students at the institution of 
        higher education who received athletically related 
        student aid broken down by race and sex in the 
        following sports: basketball, football, baseball, cross 
        country/track, and all other sports combined;
          (B) the number of students at the institution of 
        higher education, broken down by race and sex;
          (C) the completion or graduation rate for students at 
        the institution of higher education who received 
        athletically related student aid broken down by race 
        and sex in the following sports: basketball, football, 
        baseball, cross country/track and all other sports 
        combined;
          (D) the completion or graduation rate for students at 
        the institution of higher education, broken down by 
        race and sex;
          (E) the average completion or graduation rate for the 
        4 most recent completing or graduating classes of 
        students at the institution of higher education who 
        received athletically related student aid broken down 
        by race and sex in the following categories: 
        basketball, football, baseball, cross country/track, 
        and all other sports combined; and
          (F) the average completion or graduation rate for the 
        4 most recent completing or graduating classes of 
        students at the institution of higher education broken 
        down by race and sex.
  (2) When an institution described in paragraph (1) of this 
subsection offers a potential student athlete athletically 
related student aid, such institution shall provide to the 
student and the student's parents, guidance counselor, and 
coach the information contained in the report submitted by such 
institution pursuant to paragraph (1). If the institution is a 
member of a national collegiate athletic association that 
compiles graduation rate data on behalf of the association's 
member institutions that the Secretary determines is 
substantially comparable to the information described in 
paragraph (1), the distribution of the compilation of such data 
to all secondary schools in the United States shall fulfill the 
responsibility of the institution to provide information to a 
prospective student athlete's guidance counselor and coach.
          (3) For purposes of this subsection, institutions 
        may--
                  (A) exclude from the reporting requirements 
                under paragraphs (1) and (2) the completion or 
                graduation rates of students and student 
                athletes who leave school to serve in the Armed 
                Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government; or
                  (B) in cases where the students described in 
                subparagraph (A) represent 20 percent or more 
                of the certificate- or degree-seeking, full-
                time, undergraduate students at the 
                institution, calculate the completion or 
                graduation rates of such students by excluding 
                from the calculations described in paragraph 
                (1) the time period during which such students 
                were not enrolled due to their service in the 
                Armed Forces, on official church missions, or 
                with a recognized foreign aid service of the 
                Federal Government.
  (4) Each institution of higher education described in 
paragraph (1) may provide supplemental information to students 
and the Secretary showing the completion or graduation rate 
when such completion or graduation rate includes students 
transferring into and out of such institution.
  (5) The Secretary, using the reports submitted under this 
subsection, shall compile and publish a report containing the 
information required under paragraph (1) broken down by--
          (A) individual institutions of higher education; and
          (B) athletic conferences recognized by the National 
        Collegiate Athletic Association and the National 
        Association of Intercollegiate Athletics.
  (6) The Secretary shall waive the requirements of this 
subsection for any institution of higher education that is a 
member of an athletic association or athletic conference that 
has voluntarily published completion or graduation rate data or 
has agreed to publish data that, in the opinion of the 
Secretary, is substantially comparable to the information 
required under this subsection.
  (7) The Secretary, in conjunction with the National Junior 
College Athletic Association, shall develop and obtain data on 
completion or graduation rates from two-year colleges that 
award athletically related student aid. Such data shall, to the 
extent practicable, be consistent with the reporting 
requirements set forth in this section.
  (8) For purposes of this subsection, the term ``athletically 
related student aid'' means any scholarship, grant, or other 
form of financial assistance the terms of which require the 
recipient to participate in a program of intercollegiate 
athletics at an institution of higher education in order to be 
eligible to receive such assistance.
  (9) The reports required by this subsection shall be due each 
July 1 and shall cover the 1-year period ending August 31 of 
the preceding year.
  (f) Disclosure of Campus Security Policy and Campus Crime 
Statistics.--(1) Each eligible institution participating in any 
program under this title, other than a foreign institution of 
higher education, shall on August 1, 1991, begin to collect the 
following information with respect to campus crime statistics 
and campus security policies of that institution, and beginning 
September 1, 1992, and each year thereafter, prepare, publish, 
and distribute, through appropriate publications or mailings, 
to all current students and employees, and to any applicant for 
enrollment or employment upon request, an annual security 
report containing at least the following information with 
respect to the campus security policies and campus crime 
statistics of that institution:
          (A) A statement of current campus policies regarding 
        procedures and facilities for students and others to 
        report criminal actions or other emergencies occurring 
        on campus and policies concerning the institution's 
        response to such reports.
          (B) A statement of current policies concerning 
        security and access to campus facilities, including 
        campus residences, and security considerations used in 
        the maintenance of campus facilities.
          (C) A statement of current policies concerning campus 
        law enforcement, including--
                  (i) the law enforcement authority of campus 
                security personnel;
                  (ii) the working relationship of campus 
                security personnel with State and local law 
                enforcement agencies, including whether the 
                institution has agreements with such agencies, 
                such as written memoranda of understanding, for 
                the investigation of alleged criminal offenses; 
                and
                  (iii) policies which encourage accurate and 
                prompt reporting of all crimes to the campus 
                police and the appropriate law enforcement 
                agencies, when the victim of such crime elects 
                or is unable to make such a report.
          (D) A description of the type and frequency of 
        programs designed to inform students and employees 
        about campus security procedures and practices and to 
        encourage students and employees to be responsible for 
        their own security and the security of others.
          (E) A description of programs designed to inform 
        students and employees about the prevention of crimes.
          (F) Statistics concerning the occurrence on campus, 
        in or on noncampus buildings or property, and on public 
        property during the most recent calendar year, and 
        during the 2 preceding calendar years for which data 
        are available--
                  (i) of the following criminal offenses 
                reported to campus security authorities or 
                local police agencies:
                          (I) murder;
                          (II) sex offenses, forcible or 
                        nonforcible;
                          (III) robbery;
                          (IV) aggravated assault;
                          (V) burglary;
                          (VI) motor vehicle theft;
                          (VII) manslaughter;
                          (VIII) arson;
                          (IX) arrests or persons referred for 
                        campus disciplinary action for liquor 
                        law violations, drug-related 
                        violations, and weapons possession; and
                  (ii) of the crimes described in subclauses 
                (I) through (VIII) of clause (i), of larceny-
                theft, simple assault, intimidation, and 
                destruction, damage, or vandalism of property, 
                and of other crimes involving bodily injury to 
                any person, in which the victim is 
                intentionally selected because of the actual or 
                perceived race, gender, religion, national 
                origin, sexual orientation, gender identity,, 
                ethnicity, or disability of the victim that are 
                reported to campus security authorities or 
                local police agencies, which data shall be 
                collected and reported according to category of 
                prejudice; and
                  (iii) of domestic violence, dating violence, 
                and stalking incidents that were reported to 
                campus security authorities or local police 
                agencies.
          (G) A statement of policy concerning the monitoring 
        and recording through local police agencies of criminal 
        activity at off-campus student organizations which are 
        recognized by the institution and that are engaged in 
        by students attending the institution, including those 
        student organizations with off-campus housing 
        facilities.
          (H) A statement of policy regarding the possession, 
        use, and sale of alcoholic beverages and enforcement of 
        State underage drinking laws and a statement of policy 
        regarding the possession, use, and sale of illegal 
        drugs and enforcement of Federal and State drug laws 
        and a description of any drug or alcohol abuse 
        education programs as required under section 120 of 
        this Act.
          (I) A statement advising the campus community where 
        law enforcement agency information provided by a State 
        under section 170101(j) of the Violent Crime Control 
        and Law Enforcement Act of 1994 (42 U.S.C. 14071(j)), 
        concerning registered sex offenders may be obtained, 
        such as the law enforcement office of the institution, 
        a local law enforcement agency with jurisdiction for 
        the campus, or a computer network address.
                  (J) A statement of current campus policies 
                regarding immediate emergency response and 
                evacuation procedures, including the use of 
                electronic and cellular communication (if 
                appropriate), which policies shall include 
                procedures to--
                          (i) immediately notify the campus 
                        community upon the confirmation of a 
                        significant emergency or dangerous 
                        situation involving an immediate threat 
                        to the health or safety of students or 
                        staff occurring on the campus, as 
                        defined in paragraph (6), unless 
                        issuing a notification will compromise 
                        efforts to contain the emergency;
                          (ii) publicize emergency response and 
                        evacuation procedures on an annual 
                        basis in a manner designed to reach 
                        students and staff; and
                          (iii) test emergency response and 
                        evacuation procedures on an annual 
                        basis.
  (2) Nothing in this subsection shall be construed to 
authorize the Secretary to require particular policies, 
procedures, or practices by institutions of higher education 
with respect to campus crimes or campus security.
  (3) Each institution participating in any program under this 
title, other than a foreign institution of higher education, 
shall make timely reports to the campus community on crimes 
considered to be a threat to other students and employees 
described in paragraph (1)(F) that are reported to campus 
security or local law police agencies. Such reports shall be 
provided to students and employees in a manner that is timely, 
that withholds the names of victims as confidential, and that 
will aid in the prevention of similar occurrences.
  (4)(A) Each institution participating in any program under 
this title, other than a foreign institution of higher 
education, that maintains a police or security department of 
any kind shall make, keep, and maintain a daily log, written in 
a form that can be easily understood, recording all crimes 
reported to such police or security department, including--
          (i) the nature, date, time, and general location of 
        each crime; and
          (ii) the disposition of the complaint, if known.
  (B)(i) All entries that are required pursuant to this 
paragraph shall, except where disclosure of such information is 
prohibited by law or such disclosure would jeopardize the 
confidentiality of the victim, be open to public inspection 
within two business days of the initial report being made to 
the department or a campus security authority.
  (ii) If new information about an entry into a log becomes 
available to a police or security department, then the new 
information shall be recorded in the log not later than two 
business days after the information becomes available to the 
police or security department.
  (iii) If there is clear and convincing evidence that the 
release of such information would jeopardize an ongoing 
criminal investigation or the safety of an individual, cause a 
suspect to flee or evade detection, or result in the 
destruction of evidence, such information may be withheld until 
that damage is no longer likely to occur from the release of 
such information.
  (5) On an annual basis, each institution participating in any 
program under this title, other than a foreign institution of 
higher education, shall submit to the Secretary a copy of the 
statistics required to be made available under paragraph 
(1)(F). The Secretary shall--
          (A) review such statistics and report to the 
        authorizing committees on campus crime statistics by 
        September 1, 2000;
          (B) make copies of the statistics submitted to the 
        Secretary available to the public; and
          (C) in coordination with representatives of 
        institutions of higher education, identify exemplary 
        campus security policies, procedures, and practices and 
        disseminate information concerning those policies, 
        procedures, and practices that have proven effective in 
        the reduction of campus crime.
  (6)(A) In this subsection:
          (i) The terms ``dating violence'', ``domestic 
        violence'', and ``stalking'' have the meaning given 
        such terms in section 40002(a) of the Violence Against 
        Women Act of 1994 (42 U.S.C. 13925(a)).
          (ii) The term ``campus'' means--
                  (I) any building or property owned or 
                controlled by an institution of higher 
                education within the same reasonably contiguous 
                geographic area of the institution and used by 
                the institution in direct support of, or in a 
                manner related to, the institution's 
                educational purposes, including residence 
                halls; and
                  (II) property within the same reasonably 
                contiguous geographic area of the institution 
                that is owned by the institution but controlled 
                by another person, is used by students, and 
                supports institutional purposes (such as a food 
                or other retail vendor).
          (iii) The term ``noncampus building or property'' 
        means--
                  (I) any building or property owned or 
                controlled by a student organization recognized 
                by the institution; and
                  (II) any building or property (other than a 
                branch campus) owned or controlled by an 
                institution of higher education that is used in 
                direct support of, or in relation to, the 
                institution's educational purposes, is used by 
                students, and is not within the same reasonably 
                contiguous geographic area of the institution.
          (iv) The term ``public property'' means all public 
        property that is within the same reasonably contiguous 
        geographic area of the institution, such as a sidewalk, 
        a street, other thoroughfare, or parking facility, and 
        is adjacent to a facility owned or controlled by the 
        institution if the facility is used by the institution 
        in direct support of, or in a manner related to the 
        institution's educational purposes.
          (v) The term ``sexual assault'' means an offense 
        classified as a forcible or nonforcible sex offense 
        under the uniform crime reporting system of the Federal 
        Bureau of Investigation.
  (B) In cases where branch campuses of an institution of 
higher education, schools within an institution of higher 
education, or administrative divisions within an institution 
are not within a reasonably contiguous geographic area, such 
entities shall be considered separate campuses for purposes of 
the reporting requirements of this section.
  (7) The statistics described in clauses (i) and (ii) of 
paragraph (1)(F) shall be compiled in accordance with the 
definitions used in the uniform crime reporting system of the 
Department of Justice, Federal Bureau of Investigation, and the 
modifications in such definitions as implemented pursuant to 
the Hate Crime Statistics Act. For the offenses of domestic 
violence, dating violence, and stalking, such statistics shall 
be compiled in accordance with the definitions used in section 
40002(a) of the Violence Against Women Act of 1994 (42 U.S.C. 
13925(a)). Such statistics shall not identify victims of crimes 
or persons accused of crimes.
  (8)(A) Each institution of higher education participating in 
any program under this title and title IV of the Economic 
Opportunity Act of 1964, other than a foreign institution of 
higher education, shall develop and distribute as part of the 
report described in paragraph (1) a statement of policy 
regarding--
          (i) such institution's programs to prevent domestic 
        violence, dating violence, sexual assault, and 
        stalking; and
          (ii) the procedures that such institution will follow 
        once an incident of domestic violence, dating violence, 
        sexual assault, or stalking has been reported, 
        including a statement of the standard of evidence that 
        will be used during any institutional conduct 
        proceeding arising from such a report.
  (B) The policy described in subparagraph (A) shall address 
the following areas:
          (i) Education programs to promote the awareness of 
        rape, acquaintance rape, domestic violence, dating 
        violence, sexual assault, and stalking, which shall 
        include--
                  (I) primary prevention and awareness programs 
                for all incoming students and new employees, 
                which shall include--
                          (aa) a statement that the institution 
                        of higher education prohibits the 
                        offenses of domestic violence, dating 
                        violence, sexual assault, and stalking;
                          (bb) the definition of domestic 
                        violence, dating violence, sexual 
                        assault, and stalking in the applicable 
                        jurisdiction;
                          (cc) the definition of consent, in 
                        reference to sexual activity, in the 
                        applicable jurisdiction;
                          (dd) safe and positive options for 
                        bystander intervention that may be 
                        carried out by an individual to prevent 
                        harm or intervene when there is a risk 
                        of domestic violence, dating violence, 
                        sexual assault, or stalking against a 
                        person other than such individual;
                          (ee) information on risk reduction to 
                        recognize warning signs of abusive 
                        behavior and how to avoid potential 
                        attacks; and
                          (ff) the information described in 
                        clauses (ii) through (vii); and
                  (II) ongoing prevention and awareness 
                campaigns for students and faculty, including 
                information described in items (aa) through 
                (ff) of subclause (I).
          (ii) Possible sanctions or protective measures that 
        such institution may impose following a final 
        determination of an institutional disciplinary 
        procedure regarding rape, acquaintance rape, domestic 
        violence, dating violence, sexual assault, or stalking.
          (iii) Procedures victims should follow if a sex 
        offense, domestic violence, dating violence, sexual 
        assault, or stalking has occurred, including 
        information in writing about--
                  (I) the importance of preserving evidence as 
                may be necessary to the proof of criminal 
                domestic violence, dating violence, sexual 
                assault, or stalking, or in obtaining a 
                protection order;
                  (II) to whom the alleged offense should be 
                reported;
                  (III) options regarding law enforcement and 
                campus authorities, including notification of 
                the victim's option to--
                          (aa) notify proper law enforcement 
                        authorities, including on-campus and 
                        local police;
                          (bb) be assisted by campus 
                        authorities in notifying law 
                        enforcement authorities if the victim 
                        so chooses; and
                          (cc) decline to notify such 
                        authorities; and
                  (IV) where applicable, the rights of victims 
                and the institution's responsibilities 
                regarding orders of protection, no contact 
                orders, restraining orders, or similar lawful 
                orders issued by a criminal, civil, or tribal 
                court.
          (iv) Procedures for institutional disciplinary action 
        in cases of alleged domestic violence, dating violence, 
        sexual assault, or stalking, which shall include a 
        clear statement that--
                  (I) such proceedings shall--
                          (aa) provide a prompt, fair, and 
                        impartial investigation and resolution; 
                        and
                          (bb) be conducted by officials who 
                        receive annual training on the issues 
                        related to domestic violence, dating 
                        violence, sexual assault, and stalking 
                        and how to conduct an investigation and 
                        hearing process that protects the 
                        safety of victims and promotes 
                        accountability;
                  (II) the accuser and the accused are entitled 
                to the same opportunities to have others 
                present during an institutional disciplinary 
                proceeding, including the opportunity to be 
                accompanied to any related meeting or 
                proceeding by an advisor of their choice; and
                  (III) both the accuser and the accused shall 
                be simultaneously informed, in writing, of--
                          (aa) the outcome of any institutional 
                        disciplinary proceeding that arises 
                        from an allegation of domestic 
                        violence, dating violence, sexual 
                        assault, or stalking;
                          (bb) the institution's procedures for 
                        the accused and the victim to appeal 
                        the results of the institutional 
                        disciplinary proceeding;
                          (cc) of any change to the results 
                        that occurs prior to the time that such 
                        results become final; and
                          (dd) when such results become final.
          (v) Information about how the institution will 
        protect the confidentiality of victims, including how 
        publicly-available recordkeeping will be accomplished 
        without the inclusion of identifying information about 
        the victim, to the extent permissible by law.
          (vi) Written notification of students and employees 
        about existing counseling, health, mental health, 
        victim advocacy, legal assistance, and other services 
        available for victims both on-campus and in the 
        community.
          (vii) Written notification of victims about options 
        for, and available assistance in, changing academic, 
        living, transportation, and working situations, if so 
        requested by the victim and if such accommodations are 
        reasonably available, regardless of whether the victim 
        chooses to report the crime to campus police or local 
        law enforcement.
  (C) A student or employee who reports to an institution of 
higher education that the student or employee has been a victim 
of domestic violence, dating violence, sexual assault, or 
stalking, whether the offense occurred on or off campus, shall 
be provided with a written explanation of the student or 
employee's rights and options, as described in clauses (ii) 
through (vii) of subparagraph (B).
  (9) The Secretary, in consultation with the Attorney General 
of the United States, shall provide technical assistance in 
complying with the provisions of this section to an institution 
of higher education who requests such assistance.
  (10) Nothing in this section shall be construed to require 
the reporting or disclosure of privileged information.
  (11) The Secretary shall report to the appropriate committees 
of Congress each institution of higher education that the 
Secretary determines is not in compliance with the reporting 
requirements of this subsection.
  (12) For purposes of reporting the statistics with respect to 
crimes described in paragraph (1)(F), an institution of higher 
education shall distinguish, by means of separate categories, 
any criminal offenses that occur--
          (A) on campus;
          (B) in or on a noncampus building or property;
          (C) on public property; and
          (D) in dormitories or other residential facilities 
        for students on campus.
  (13) Upon a determination pursuant to section 487(c)(3)(B) 
that an institution of higher education has substantially 
misrepresented the number, location, or nature of the crimes 
required to be reported under this subsection, the Secretary 
shall impose a civil penalty upon the institution in the same 
amount and pursuant to the same procedures as a civil penalty 
is imposed under section 487(c)(3)(B).
  (14)(A) Nothing in this subsection may be construed to--
          (i) create a cause of action against any institution 
        of higher education or any employee of such an 
        institution for any civil liability; or
          (ii) establish any standard of care.
  (B) Notwithstanding any other provision of law, evidence 
regarding compliance or noncompliance with this subsection 
shall not be admissible as evidence in any proceeding of any 
court, agency, board, or other entity, except with respect to 
an action to enforce this subsection.
          (15) The Secretary shall annually report to the 
        authorizing committees regarding compliance with this 
        subsection by institutions of higher education, 
        including an up-to-date report on the Secretary's 
        monitoring of such compliance.
  (16)(A) The Secretary shall seek the advice and counsel of 
the Attorney General of the United States concerning the 
development, and dissemination to institutions of higher 
education, of best practices information about campus safety 
and emergencies.
  (B) The Secretary shall seek the advice and counsel of the 
Attorney General of the United States and the Secretary of 
Health and Human Services concerning the development, and 
dissemination to institutions of higher education, of best 
practices information about preventing and responding to 
incidents of domestic violence, dating violence, sexual 
assault, and stalking, including elements of institutional 
policies that have proven successful based on evidence-based 
outcome measurements.
  (17) No officer, employee, or agent of an institution 
participating in any program under this title shall retaliate, 
intimidate, threaten, coerce, or otherwise discriminate against 
any individual for exercising their rights or responsibilities 
under any provision of this subsection.
  (18) This subsection may be cited as the ``Jeanne Clery 
Disclosure of Campus Security Policy and Campus Crime 
Statistics Act''.
  (g) Data Required.--
          (1) In general.--Each coeducational institution of 
        higher education that participates in any program under 
        this title, and has an intercollegiate athletic 
        program, shall annually, for the immediately preceding 
        academic year, prepare a report that contains the 
        following information regarding intercollegiate 
        athletics:
                  (A) The number of male and female full-time 
                undergraduates that attended the institution.
                  (B) A listing of the varsity teams that 
                competed in intercollegiate athletic 
                competition and for each such team the 
                following data:
                          (i) The total number of participants, 
                        by team, as of the day of the first 
                        scheduled contest for the team.
                          (ii) Total operating expenses 
                        attributable to such teams, except that 
                        an institution may also report such 
                        expenses on a per capita basis for each 
                        team and expenditures attributable to 
                        closely related teams such as track and 
                        field or swimming and diving, may be 
                        reported together, although such 
                        combinations shall be reported 
                        separately for men's and women's teams.
                          (iii) Whether the head coach is male 
                        or female and whether the head coach is 
                        assigned to that team on a full-time or 
                        part-time basis. Graduate assistants 
                        and volunteers who serve as head 
                        coaches shall be considered to be head 
                        coaches for the purposes of this 
                        clause.
                          (iv) The number of assistant coaches 
                        who are male and the number of 
                        assistant coaches who are female for 
                        each team and whether a particular 
                        coach is assigned to that team on a 
                        full-time or part-time basis. Graduate 
                        assistants and volunteers who serve as 
                        assistant coaches shall be considered 
                        to be assistant coaches for the 
                        purposes of this clause.
                  (C) The total amount of money spent on 
                athletically related student aid, including the 
                value of waivers of educational expenses, 
                separately for men's and women's teams overall.
                  (D) The ratio of athletically related student 
                aid awarded male athletes to athletically 
                related student aid awarded female athletes.
                  (E) The total amount of expenditures on 
                recruiting, separately for men's and women's 
                teams overall.
                  (F) The total annual revenues generated 
                across all men's teams and across all women's 
                teams, except that an institution may also 
                report such revenues by individual team.
                  (G) The average annual institutional salary 
                of the head coaches of men's teams, across all 
                offered sports, and the average annual 
                institutional salary of the head coaches of 
                women's teams, across all offered sports.
                  (H) The average annual institutional salary 
                of the assistant coaches of men's teams, across 
                all offered sports, and the average annual 
                institutional salary of the assistant coaches 
                of women's teams, across all offered sports.
                  (I)(i) The total revenues, and the revenues 
                from football, men's basketball, women's 
                basketball, all other men's sports combined and 
                all other women's sports combined, derived by 
                the institution from the institution's 
                intercollegiate athletics activities.
                  (ii) For the purpose of clause (i), revenues 
                from intercollegiate athletics activities 
                allocable to a sport shall include (without 
                limitation) gate receipts, broadcast revenues, 
                appearance guarantees and options, concessions, 
                and advertising, but revenues such as student 
                activities fees or alumni contributions not so 
                allocable shall be included in the calculation 
                of total revenues only.
                  (J)(i) The total expenses, and the expenses 
                attributable to football, men's basketball, 
                women's basketball, all other men's sports 
                combined, and all other women's sports 
                combined, made by the institution for the 
                institution's intercollegiate athletics 
                activities.
                  (ii) For the purpose of clause (i), expenses 
                for intercollegiate athletics activities 
                allocable to a sport shall include (without 
                limitation) grants-in-aid, salaries, travel, 
                equipment, and supplies, but expenses such as 
                general and administrative overhead not so 
                allocable shall be included in the calculation 
                of total expenses only.
          (2) Special rule.--For the purposes of paragraph 
        (1)(G), if a coach has responsibilities for more than 
        one team and the institution does not allocate such 
        coach's salary by team, the institution should divide 
        the salary by the number of teams for which the coach 
        has responsibility and allocate the salary among the 
        teams on a basis consistent with the coach's 
        responsibilities for the different teams.
          (3) Disclosure of information to students and 
        public.--An institution of higher education described 
        in paragraph (1) shall make available to students and 
        potential students, upon request, and to the public, 
        the information contained in the report described in 
        paragraph (1), except that all students shall be 
        informed of their right to request such information.
          (4) Submission; report; information availability.--
        (A) On an annual basis, each institution of higher 
        education described in paragraph (1) shall provide to 
        the Secretary, within 15 days of the date that the 
        institution makes available the report under paragraph 
        (1), the information contained in the report.
          (B) The Secretary shall ensure that the reports 
        described in subparagraph (A) are made available to the 
        public within a reasonable period of time.
          (C) Not later than 180 days after the date of 
        enactment of the Higher Education Amendments of 1998, 
        the Secretary shall notify all secondary schools in all 
        States regarding the availability of the information 
        made available under paragraph (1), and how such 
        information may be accessed.
          (5) Definition.--For the purposes of this subsection, 
        the term ``operating expenses'' means expenditures on 
        lodging and meals, transportation, officials, uniforms 
        and equipment.
  (h) Transfer of Credit Policies.--
          (1) Disclosure.--Each institution of higher education 
        participating in any program under this title shall 
        publicly disclose, in a readable and comprehensible 
        manner, the transfer of credit policies established by 
        the institution which shall include a statement of the 
        institution's current transfer of credit policies that 
        includes, at a minimum--
                  (A) any established criteria the institution 
                uses regarding the transfer of credit earned at 
                another institution of higher education; and
                  (B) a list of institutions of higher 
                education with which the institution has 
                established an articulation agreement.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                  (A) authorize the Secretary or the National 
                Advisory Committee on Institutional Quality and 
                Integrity to require particular policies, 
                procedures, or practices by institutions of 
                higher education with respect to transfer of 
                credit;
                  (B) authorize an officer or employee of the 
                Department to exercise any direction, 
                supervision, or control over the curriculum, 
                program of instruction, administration, or 
                personnel of any institution of higher 
                education, or over any accrediting agency or 
                association;
                  (C) limit the application of the General 
                Education Provisions Act; or
                  (D) create any legally enforceable right on 
                the part of a student to require an institution 
                of higher education to accept a transfer of 
                credit from another institution.
  (i) Disclosure of Fire Safety Standards and Measures.--
          (1) Annual fire safety reports on student housing 
        required.--Each eligible institution participating in 
        any program under this title that maintains on-campus 
        student housing facilities shall, on an annual basis, 
        publish a fire safety report, which shall contain 
        information with respect to the campus fire safety 
        practices and standards of that institution, 
        including--
                  (A) statistics concerning the following in 
                each on-campus student housing facility during 
                the most recent calendar years for which data 
                are available:
                          (i) the number of fires and the cause 
                        of each fire;
                          (ii) the number of injuries related 
                        to a fire that result in treatment at a 
                        medical facility;
                          (iii) the number of deaths related to 
                        a fire; and
                          (iv) the value of property damage 
                        caused by a fire;
                  (B) a description of each on-campus student 
                housing facility fire safety system, including 
                the fire sprinkler system;
                  (C) the number of regular mandatory 
                supervised fire drills;
                  (D) policies or rules on portable electrical 
                appliances, smoking, and open flames (such as 
                candles), procedures for evacuation, and 
                policies regarding fire safety education and 
                training programs provided to students, 
                faculty, and staff; and
                  (E) plans for future improvements in fire 
                safety, if determined necessary by such 
                institution.
          (2) Report to the secretary.--Each institution 
        described in paragraph (1) shall, on an annual basis, 
        submit to the Secretary a copy of the statistics 
        required to be made available under paragraph (1)(A).
          (3) Current information to campus community.--Each 
        institution described in paragraph (1) shall--
                  (A) make, keep, and maintain a log, recording 
                all fires in on-campus student housing 
                facilities, including the nature, date, time, 
                and general location of each fire; and
                  (B) make annual reports to the campus 
                community on such fires.
          (4) Responsibilities of the secretary.--The Secretary 
        shall--
                  (A) make the statistics submitted under 
                paragraph (1)(A) to the Secretary available to 
                the public; and
                  (B) in coordination with nationally 
                recognized fire organizations and 
                representatives of institutions of higher 
                education, representatives of associations of 
                institutions of higher education, and other 
                organizations that represent and house a 
                significant number of students--
                          (i) identify exemplary fire safety 
                        policies, procedures, programs, and 
                        practices, including the installation, 
                        to the technical standards of the 
                        National Fire Protection Association, 
                        of fire detection, prevention, and 
                        protection technologies in student 
                        housing, dormitories, and other 
                        buildings;
                          (ii) disseminate the exemplary 
                        policies, procedures, programs and 
                        practices described in clause (i) to 
                        the Administrator of the United States 
                        Fire Administration;
                          (iii) make available to the public 
                        information concerning those policies, 
                        procedures, programs, and practices 
                        that have proven effective in the 
                        reduction of fires; and
                          (iv) develop a protocol for 
                        institutions to review the status of 
                        their fire safety systems.
          (5) Rules of construction.--Nothing in this 
        subsection shall be construed to--
                  (A) authorize the Secretary to require 
                particular policies, procedures, programs, or 
                practices by institutions of higher education 
                with respect to fire safety, other than with 
                respect to the collection, reporting, and 
                dissemination of information required by this 
                subsection;
                  (B) affect section 444 of the General 
                Education Provisions Act (commonly known as the 
                ``Family Educational Rights and Privacy Act of 
                1974'') or the regulations issued under section 
                264 of the Health Insurance Portability and 
                Accountability Act of 1996 (42 U.S.C. 1320d-2 
                note);
                  (C) create a cause of action against any 
                institution of higher education or any employee 
                of such an institution for any civil liability; 
                or
                  (D) establish any standard of care.
          (6) Compliance report.--The Secretary shall annually 
        report to the authorizing committees regarding 
        compliance with this subsection by institutions of 
        higher education, including an up-to-date report on the 
        Secretary's monitoring of such compliance.
          (7) Evidence.--Notwithstanding any other provision of 
        law, evidence regarding compliance or noncompliance 
        with this subsection shall not be admissible as 
        evidence in any proceeding of any court, agency, board, 
        or other entity, except with respect to an action to 
        enforce this subsection.
  (j) Missing Person Procedures.--
          (1) Option and procedures.--Each institution of 
        higher education that provides on-campus housing and 
        participates in any program under this title shall--
                  (A) establish a missing student notification 
                policy for students who reside in on-campus 
                housing that--
                          (i) informs each such student that 
                        such student has the option to identify 
                        an individual to be contacted by the 
                        institution not later than 24 hours 
                        after the time that the student is 
                        determined missing in accordance with 
                        official notification procedures 
                        established by the institution under 
                        subparagraph (B);
                          (ii) provides each such student a 
                        means to register confidential contact 
                        information in the event that the 
                        student is determined to be missing for 
                        a period of more than 24 hours;
                          (iii) advises each such student who 
                        is under 18 years of age, and not an 
                        emancipated individual, that the 
                        institution is required to notify a 
                        custodial parent or guardian not later 
                        24 hours after the time that the 
                        student is determined to be missing in 
                        accordance with such procedures;
                          (iv) informs each such residing 
                        student that the institution will 
                        notify the appropriate law enforcement 
                        agency not later than 24 hours after 
                        the time that the student is determined 
                        missing in accordance with such 
                        procedures; and
                          (v) requires, if the campus security 
                        or law enforcement personnel has been 
                        notified and makes a determination that 
                        a student who is the subject of a 
                        missing person report has been missing 
                        for more than 24 hours and has not 
                        returned to the campus, the institution 
                        to initiate the emergency contact 
                        procedures in accordance with the 
                        student's designation; and
                  (B) establish official notification 
                procedures for a missing student who resides in 
                on-campus housing that--
                          (i) includes procedures for official 
                        notification of appropriate individuals 
                        at the institution that such student 
                        has been missing for more than 24 
                        hours;
                          (ii) requires any official missing 
                        person report relating to such student 
                        be referred immediately to the 
                        institution's police or campus security 
                        department; and
                          (iii) if, on investigation of the 
                        official report, such department 
                        determines that the missing student has 
                        been missing for more than 24 hours, 
                        requires--
                                  (I) such department to 
                                contact the individual 
                                identified by such student 
                                under subparagraph (A)(i);
                                  (II) if such student is under 
                                18 years of age, and not an 
                                emancipated individual, the 
                                institution to immediately 
                                contact the custodial parent or 
                                legal guardian of such student; 
                                and
                                  (III) if subclauses (I) or 
                                (II) do not apply to a student 
                                determined to be a missing 
                                person, inform the appropriate 
                                law enforcement agency.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed--
                  (A) to provide a private right of action to 
                any person to enforce any provision of this 
                subsection; or
                  (B) to create a cause of action against any 
                institution of higher education or any employee 
                of the institution for any civil liability.
  (k) Notice to Students Concerning Penalties for Drug 
Violations.--
          (1) Notice upon enrollment.--Each institution of 
        higher education shall provide to each student, upon 
        enrollment, a separate, clear, and conspicuous written 
        notice that advises the student of the penalties under 
        section 484(r).
          (2) Notice after loss of eligibility.--An institution 
        of higher education shall provide in a timely manner to 
        each student who has lost eligibility for any grant, 
        loan, or work-study assistance under this title as a 
        result of the penalties listed under section 484(r)(1) 
        a separate, clear, and conspicuous written notice that 
        notifies the student of the loss of eligibility and 
        advises the student of the ways in which the student 
        can regain eligibility under section 484(r)(2).
  [(l) Entrance Counseling for Borrowers.--
          [(1) Disclosure required prior to disbursement.--
                  [(A) In general.--Each eligible institution 
                shall, at or prior to the time of a 
                disbursement to a first-time borrower of a loan 
                made, insured, or guaranteed under part B 
                (other than a loan made pursuant to section 
                428C or a loan made on behalf of a student 
                pursuant to section 428B) or made under part D 
                (other than a Federal Direct Consolidation Loan 
                or a Federal Direct PLUS loan made on behalf of 
                a student), ensure that the borrower receives 
                comprehensive information on the terms and 
                conditions of the loan and of the 
                responsibilities the borrower has with respect 
                to such loan in accordance with paragraph (2). 
                Such information--
                          [(i) shall be provided in a simple 
                        and understandable manner; and
                          [(ii) may be provided--
                                  [(I) during an entrance 
                                counseling session conduction 
                                in person;
                                  [(II) on a separate written 
                                form provided to the borrower 
                                that the borrower signs and 
                                returns to the institution; or
                                  [(III) online, with the 
                                borrower acknowledging receipt 
                                of the information.
                  [(B) Use of interactive programs.--The 
                Secretary shall encourage institutions to carry 
                out the requirements of subparagraph (A) 
                through the use of interactive programs that 
                test the borrower's understanding of the terms 
                and conditions of the borrower's loans under 
                part B or D, using simple and understandable 
                language and clear formatting.
          [(2) Information to be provided.--The information to 
        be provided to the borrower under paragraph (1)(A) 
        shall include the following:
                  [(A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the 
                eligibility of the borrower for other forms of 
                student financial assistance.
                  [(B) An explanation of the use of the master 
                promissory note.
                  [(C) Information on how interest accrues and 
                is capitalized during periods when the interest 
                is not paid by either the borrower or the 
                Secretary.
                  [(D) In the case of a loan made under section 
                428B or 428H, a Federal Direct PLUS Loan, or a 
                Federal Direct Unsubsidized Stafford Loan, the 
                option of the borrower to pay the interest 
                while the borrower is in school.
                  [(E) The definition of half-time enrollment 
                at the institution, during regular terms and 
                summer school, if applicable, and the 
                consequences of not maintaining half-time 
                enrollment.
                  [(F) An explanation of the importance of 
                contacting the appropriate offices at the 
                institution of higher education if the borrower 
                withdraws prior to completing the borrower's 
                program of study so that the institution can 
                provide exit counseling, including information 
                regarding the borrower's repayment options and 
                loan consolidation.
                  [(G) Sample monthly repayment amounts based 
                on--
                          [(i) a range of levels of 
                        indebtedness of--
                                  [(I) borrowers of loans under 
                                section 428 or 428H; and
                                  [(II) as appropriate, 
                                graduate borrowers of loans 
                                under section 428, 428B, or 
                                428H; or
                          [(ii) the average cumulative 
                        indebtedness of other borrowers in the 
                        same program as the borrower at the 
                        same institution.
                  [(H) The obligation of the borrower to repay 
                the full amount of the loan, regardless of 
                whether the borrower completes or does not 
                complete the program in which the borrower is 
                enrolled within the regular time for program 
                completion.
                  [(I) The likely consequences of default on 
                the loan, including adverse credit reports, 
                delinquent debt collection procedures under 
                Federal law, and litigation.
                  [(J) Information on the National Student Loan 
                Data System and how the borrower can access the 
                borrower's records.
                  [(K) The name of and contact information for 
                the individual the borrower may contact if the 
                borrower has any questions about the borrower's 
                rights and responsibilities or the terms and 
                conditions of the loan.]
  (l) Annual Financial Aid Counseling.--
          (1) Annual disclosure required.--
                  (A) In general.--Each eligible institution 
                shall ensure that each individual who receives 
                a Federal Pell Grant or a loan made under part 
                D (other than a Federal Direct Consolidation 
                Loan) receives comprehensive information on the 
                terms and conditions of such Federal Pell Grant 
                or loan and the responsibilities the individual 
                has with respect to such Federal Pell Grant or 
                loan. Such information shall be provided, for 
                each award year for which the individual 
                receives such Federal Pell Grant or loan, in a 
                simple and understandable manner--
                          (i) during a counseling session 
                        conducted in person;
                          (ii) online, with the individual 
                        acknowledging receipt of the 
                        information; or
                          (iii) through the use of the online 
                        counseling tool described in subsection 
                        (n)(1)(B).
                  (B) Use of interactive programs.--In the case 
                of institutions not using the online counseling 
                tool described in subsection (n)(1)(B), the 
                Secretary shall require such institutions to 
                carry out the requirements of subparagraph (A) 
                through the use of interactive programs, during 
                an annual counseling session that is in-person 
                or online, that test the individual's 
                understanding of the terms and conditions of 
                the Federal Pell Grant or loan awarded to the 
                individual, using simple and understandable 
                language and clear formatting.
          (2) All individuals.--The information to be provided 
        under paragraph (1)(A) to each individual receiving 
        counseling under this subsection shall include the 
        following:
                  (A) An explanation of how the individual may 
                budget for typical educational expenses and a 
                sample budget based on the cost of attendance 
                for the institution.
                  (B) An explanation that an individual has a 
                right to annually request a disclosure of 
                information collected by a consumer reporting 
                agency pursuant to section 612(a) of the Fair 
                Credit Reporting Act (15 U.S.C. 1681j(a)).
                  (C) Based on the most recent data available 
                from the American Community Survey available 
                from the Department of Commerce, the estimated 
                average income and percentage of employment in 
                the State of domicile of the individual for 
                individuals with--
                          (i) a high school diploma or 
                        equivalent;
                          (ii) some post-secondary education 
                        without completion of a degree or 
                        certificate; and
                          (iii) a bachelor's degree.
                  (D) An introduction to the financial 
                management resources provided by the Financial 
                Literacy and Education Commission.
          (3) Students receiving federal pell grants.--The 
        information to be provided under paragraph (1)(A) to 
        each student receiving a Federal Pell Grant shall 
        include the following:
                  (A) An explanation of the terms and 
                conditions of the Federal Pell Grant.
                  (B) An explanation of approved educational 
                expenses for which the student may use the 
                Federal Pell Grant.
                  (C) An explanation of why the student may 
                have to repay the Federal Pell Grant.
                  (D) An explanation of the maximum number of 
                semesters or equivalent for which the student 
                may be eligible to receive a Federal Pell 
                Grant, and a statement of the amount of time 
                remaining for which the student may be eligible 
                to receive a Federal Pell Grant.
                  (E) An explanation that if the student 
                transfers to another institution not all of the 
                student's courses may be acceptable in transfer 
                toward meeting specific degree or program 
                requirements at such institution, but the 
                amount of time remaining for which a student 
                may be eligible to receive a Federal Pell 
                Grant, as provided under subparagraph (D), will 
                not change.
                  (F) An explanation of how the student may 
                seek additional financial assistance from the 
                institution's financial aid office due to a 
                change in the student's financial 
                circumstances, and the contact information for 
                such office.
          (4) Borrowers receiving loans made under part d 
        (other than parent plus loans).--The information to be 
        provided under paragraph (1)(A) to a borrower of a loan 
        made under part D (other than a Federal Direct PLUS 
        Loan made on behalf of a dependent student) shall 
        include the following:
                  (A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the 
                eligibility of the borrower for other forms of 
                student financial assistance.
                  (B) An explanation of the use of the master 
                promissory note.
                  (C) An explanation that the borrower is not 
                required to accept the full amount of the loan 
                offered to the borrower.
                  (D) An explanation that the borrower should 
                consider accepting any grant, scholarship, or 
                State or Federal work-study jobs for which the 
                borrower is eligible prior to accepting Federal 
                student loans.
                  (E) A recommendation to the borrower to 
                exhaust the borrower's Federal student loan 
                options prior to taking out private education 
                loans, an explanation that Federal student 
                loans typically offer better terms and 
                conditions than private education loans, an 
                explanation of treatment of loans made under 
                part D and private education loans in 
                bankruptcy, and an explanation that if a 
                borrower decides to take out a private 
                education loan--
                          (i) the borrower has the ability to 
                        select a private educational lender of 
                        the borrower's choice;
                          (ii) the proposed private education 
                        loan may impact the borrower's 
                        potential eligibility for other 
                        financial assistance, including Federal 
                        financial assistance under this title; 
                        and
                          (iii) the borrower has a right--
                                  (I) to accept the terms of 
                                the private education loan 
                                within 30 calendar days 
                                following the date on which the 
                                application for such loan is 
                                approved and the borrower 
                                receives the required 
                                disclosure documents, pursuant 
                                to section 128(e) of the Truth 
                                in Lending Act (15 U.S.C. 
                                1638(e)); and
                                  (II) to cancel such loan 
                                within 3 business days of the 
                                date on which the loan is 
                                consummated, pursuant to 
                                section 128(e)(7) of such Act 
                                (15 U.S.C. 1638(e)(7)).
                  (F) An explanation of the approved 
                educational expenses for which the borrower may 
                use a loan made under part D.
                  (G) Information on the annual and aggregate 
                loan limits for Federal Direct Stafford Loans 
                and Federal Direct Unsubsidized Stafford Loans.
                  (H) Information on how interest accrues and 
                is capitalized during periods when the interest 
                is not paid by either the borrower or the 
                Secretary.
                  (I) In the case of a Federal Direct PLUS Loan 
                or a Federal Direct Unsubsidized Stafford Loan, 
                the option of the borrower to pay the interest 
                while the borrower is in school.
                  (J) The definition of half-time enrollment at 
                the institution, during regular terms and 
                summer school, if applicable, and the 
                consequences of not maintaining at least half-
                time enrollment.
                  (K) An explanation of the importance of 
                contacting the appropriate offices at the 
                institution of higher education if the borrower 
                withdraws prior to completing the borrower's 
                program of study so that the institution can 
                provide exit counseling, including information 
                regarding the borrower's repayment options and 
                loan consolidation.
                  (L) For a first-time borrower--
                          (i) a statement of the anticipated 
                        balance on the loan for which the 
                        borrower is receiving counseling under 
                        this subsection;
                          (ii) based on such anticipated 
                        balance, the anticipated monthly 
                        payment amount under, at minimum--
                                  (I) the standard repayment 
                                plan; and
                                  (II) an income-based 
                                repayment plan under section 
                                493C, as determined using 
                                regionally available data from 
                                the Bureau of Labor Statistics 
                                of the average starting salary 
                                for the occupation in which the 
                                borrower has an interest in or 
                                intends to be employed; and
                          (iii) an estimate of the projected 
                        monthly payment amount under each 
                        repayment plan described in clause 
                        (ii), based on the average cumulative 
                        indebtedness at graduation for 
                        borrowers of loans made under part D 
                        who are in the same program of study as 
                        the borrower.
                  (M) For a borrower with an outstanding 
                balance of principal or interest due on a loan 
                made under this title--
                          (i) a current statement of the amount 
                        of such outstanding balance and 
                        interest accrued;
                          (ii) based on such outstanding 
                        balance, the anticipated monthly 
                        payment amount under, at minimum, the 
                        standard repayment plan and, using 
                        regionally available data from the 
                        Bureau of Labor Statistics of the 
                        average starting salary for the 
                        occupation the borrower intends to be 
                        employed, an income-based repayment 
                        plan under section 493C; and
                          (iii) an estimate of the projected 
                        monthly payment amount under each 
                        repayment plan described in clause 
                        (ii), based on--
                                  (I) the outstanding balance 
                                described in clause (i);
                                  (II) the anticipated 
                                outstanding balance on the loan 
                                for which the student is 
                                receiving counseling under this 
                                subsection; and
                                  (III) a projection for any 
                                other loans made under part D 
                                that the borrower is reasonably 
                                expected to accept during the 
                                borrower's program of study 
                                based on at least the expected 
                                increase in the cost of 
                                attendance of such program.
                  (N) The obligation of the borrower to repay 
                the full amount of the loan, regardless of 
                whether the borrower completes or does not 
                complete the program in which the borrower is 
                enrolled within the regular time for program 
                completion.
                  (O) The likely consequences of default on the 
                loan, including adverse credit reports, 
                delinquent debt collection procedures under 
                Federal law, and litigation, and a notice of 
                the institution's most recent cohort default 
                rate (defined in section 435(m)), an 
                explanation of the cohort default rate, the 
                most recent national average cohort default 
                rate, and the most recent national average 
                cohort default rate for the category of 
                institution described in section 435(m)(4) to 
                which the institution belongs.
                  (P) Information on the National Student Loan 
                Data System and how the borrower can access the 
                borrower's records.
                  (Q) The contact information for the 
                institution's financial aid office or other 
                appropriate office at the institution the 
                borrower may contact if the borrower has any 
                questions about the borrower's rights and 
                responsibilities or the terms and conditions of 
                the loan.
          (5) Borrowers receiving parent plus loans for 
        dependent students.--The information to be provided 
        under paragraph (1)(A) to a borrower of a Federal 
        Direct PLUS Loan made on behalf of a dependent student 
        shall include the following:
                  (A) The information described in 
                subparagraphs (A) through (C) and (N) through 
                (Q) of paragraph (4).
                  (B) The option of the borrower to pay the 
                interest on the loan while the loan is in 
                deferment.
                  (C) For a first-time borrower of such loan--
                          (i) a statement of the anticipated 
                        balance on the loan for which the 
                        borrower is receiving counseling under 
                        this subsection;
                          (ii) based on such anticipated 
                        balance, the anticipated monthly 
                        payment amount under the standard 
                        repayment plan; and
                          (iii) an estimate of the projected 
                        monthly payment amount under the 
                        standard repayment plan, based on the 
                        average cumulative indebtedness of 
                        other borrowers of Federal Direct PLUS 
                        Loans made on behalf of dependent 
                        students who are in the same program of 
                        study as the student on whose behalf 
                        the borrower borrowed the loan.
                  (D) For a borrower with an outstanding 
                balance of principal or interest due on such 
                loan--
                          (i) a statement of the amount of such 
                        outstanding balance;
                          (ii) based on such outstanding 
                        balance, the anticipated monthly 
                        payment amount under the standard 
                        repayment plan; and
                          (iii) an estimate of the projected 
                        monthly payment amount under the 
                        standard repayment plan, based on--
                                  (I) the outstanding balance 
                                described in clause (i);
                                  (II) the anticipated 
                                outstanding balance on the loan 
                                for which the borrower is 
                                receiving counseling under this 
                                subsection; and
                                  (III) a projection for any 
                                other Federal Direct PLUS Loan 
                                made on behalf of the dependent 
                                student that the borrower is 
                                reasonably expected to accept 
                                during the program of study of 
                                such student based on at least 
                                the expected increase in the 
                                cost of attendance of such 
                                program.
                  (E) Debt management strategies that are 
                designed to facilitate the repayment of such 
                indebtedness.
                  (F) An explanation that the borrower has the 
                options to prepay each loan, pay each loan on a 
                shorter schedule, and change repayment plans.
                  (G) For each Federal Direct PLUS Loan made on 
                behalf of a dependent student for which the 
                borrower is receiving counseling under this 
                subsection, the contact information for the 
                loan servicer of the loan and a link to such 
                servicer's Website.
          (6) Annual loan acceptance.--Prior to making the 
        first disbursement of a loan made under part D (other 
        than a Federal Direct Consolidation Loan) to a borrower 
        for an award year, an eligible institution, shall, as 
        part of carrying out the counseling requirements of 
        this subsection for the loan, ensure that after 
        receiving the applicable counseling under paragraphs 
        (2), (4), and (5) for the loan the borrower accepts the 
        loan for such award year by--
                  (A) signing the master promissory note for 
                the loan;
                  (B) signing and returning to the institution 
                a separate written statement that affirmatively 
                states that the borrower accepts the loan; or
                  (C) electronically signing an electronic 
                version of the statement described in 
                subparagraph (B).
  (m) Disclosures of Reimbursements for Service on Advisory 
Boards.--
          (1) Disclosure.--Each institution of higher education 
        participating in any program under this title shall 
        report, on an annual basis, to the Secretary, any 
        reasonable expenses paid or provided under section 
        140(d) of the Truth in Lending Act to any employee who 
        is employed in the financial aid office of the 
        institution, or who otherwise has responsibilities with 
        respect to education loans or other financial aid of 
        the institution. Such reports shall include--
                  (A) the amount for each specific instance of 
                reasonable expenses paid or provided;
                  (B) the name of the financial aid official, 
                other employee, or agent to whom the expenses 
                were paid or provided;
                  (C) the dates of the activity for which the 
                expenses were paid or provided; and
                  (D) a brief description of the activity for 
                which the expenses were paid or provided.
          (2) Report to congress.--The Secretary shall 
        summarize the information received from institutions of 
        higher education under paragraph (1) in a report and 
        transmit such report annually to the authorizing 
        committees.
  (n) Online Counseling Tools.--
          (1) In general.--Beginning not later than 1 year 
        after the date of enactment of the Empowering Students 
        Through Enhanced Financial Counseling Act, the 
        Secretary shall maintain--
                  (A) an online counseling tool that provides 
                the exit counseling required under subsection 
                (b) and meets the applicable requirements of 
                this subsection; and
                  (B) an online counseling tool that provides 
                the annual counseling required under subsection 
                (l) and meets the applicable requirements of 
                this subsection.
          (2) Requirements of tools.--In maintaining the online 
        counseling tools described in paragraph (1), the 
        Secretary shall ensure that each such tool is--
                  (A) consumer tested, in consultation with 
                other relevant Federal agencies, to ensure that 
                the tool is effective in helping individuals 
                understand their rights and obligations with 
                respect to borrowing a loan made under part D 
                or receiving a Federal Pell Grant;
                  (B) understandable to students receiving 
                Federal Pell Grants and borrowers of loans made 
                under part D; and
                  (C) freely available to all eligible 
                institutions.
          (3) Record of counseling completion.--The Secretary 
        shall--
                  (A) use each online counseling tool described 
                in paragraph (1) to keep a record of which 
                individuals have received counseling using the 
                tool, and notify the applicable institutions of 
                the individual's completion of such counseling;
                  (B) in the case of a borrower who receives 
                annual counseling for a loan made under part D 
                using the tool described in paragraph (1)(B), 
                notify the borrower by when the borrower should 
                accept, in a manner described in subsection 
                (l)(6), the loan for which the borrower has 
                received such counseling; and
                  (C) in the case of a borrower described in 
                subsection (b)(1)(B) at an institution that 
                uses the online counseling tool described in 
                paragraph (1)(A) of this subsection, the 
                Secretary shall attempt to provide the 
                information described in subsection (b)(1)(A) 
                to the borrower through such tool.

           *       *       *       *       *       *       *

                                  [all]
```