```

[House Report 114-677]
[From the U.S. Government Publishing Office]

114th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      114-677

======================================================================
 
                 HBCU CAPITAL FINANCING IMPROVEMENT 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. 5530]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 5530) to amend the Higher Education Act 
of 1965 to modify certain provisions relating to the capital 
financing of historically Black colleges and universities, 
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 ``HBCU Capital Financing Improvement 
Act''.

SEC. 2. BOND INSURANCE.

  Section 343 of the Higher Education Act of 1965 (20 U.S.C. 1066b) is 
amended--
          (1) by striking ``escrow account'' each place it appears and 
        inserting ``bond insurance fund''; and
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``an'' and 
                inserting ``a''; and
                  (B) in paragraph (8), in the matter preceding 
                subparagraph (A), by striking ``an'' and inserting 
                ``a''.

SEC. 3. STRENGTHENING TECHNICAL ASSISTANCE.

  Paragraph (9) of section 345 of the Higher Education Act of 1965 (20 
U.S.C. 1066d) is amended to read as follows:
          ``(9) may, directly or by grant or contract, provide 
        financial counseling and technical assistance to eligible 
        institutions to prepare the institutions to qualify, apply for, 
        and maintain a capital improvement loan, including a loan under 
        this part; and''.

SEC. 4. HBCU CAPITAL FINANCING ADVISORY BOARD.

  Paragraph (2) of section 347(c) of the Higher Education Act of 1965 
(20 U.S.C. 1066f(c)) is amended to read as follows:
          ``(2) Report.--On an annual basis, the Advisory Board shall 
        prepare and submit to the authorizing committees a report on 
        the status of the historically Black colleges and universities 
        described in paragraph (1)(A). That report shall also include--
                  ``(A) an overview of all loans in the capital 
                financing program, including the most recent loans 
                awarded in the fiscal year in which the report is 
                submitted; and
                  ``(B) administrative and legislative recommendations, 
                as needed, for addressing the issues related to 
                construction financing facing historically Black 
                colleges and universities.''.

                                Purpose

    H.R. 5530, the HBCU Capital Financing Improvement Act, 
increases access to, and strengthens congressional oversight 
of, the Historically Black College and University (HBCU) 
Capital Financing Program.

                            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 on 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. Bandr, 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 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 HBCU Capital Financing Improvement Act makes needed 
improvements to the HBCU Capital Financing Program. This 
bipartisan legislation improves access to the program and 
improves financial counseling offered by the program, while 
strengthening the program's congressional oversight, to help 
the program fulfills its intended purpose.
    The bill ensures public HBCUs will have greater access to 
the HBCU Capital Financing Program by requiring institutions to 
pay into a ``bond insurance fund,'' rather than a pooled escrow 
account as in current law, to better reflect the purpose of the 
withheld funds.
    The HBCU Capital Financing Improvement Act specifically 
authorizes the Secretary to provide financial counseling to 
eligible institutions to prepare them to qualify, apply for, 
and maintain a capital improvement loan.
    The bill requires the program's advisory board to provide 
an annual report to Congress, giving an overview of all the 
loans awarded by the program, the status and financial 
condition of at least 10 institutions participating in the 
program, and any administrative and legislative recommendations 
they may have for improving the program.

                            Committee Views

Introduction

    HBCUs play a unique and important role in helping African-
American students overcome documented\1\ barriers of access and 
completion of postsecondary education. Due to many factors, 
including the actions by some state and private actors,\2\ many 
HBCUs have a poorer financial outlook than other institutions 
of similar size and age. Presently, the cost of capital is a 
roadblock that prevents many HBCUs, some of which have physical 
plants over 150 years old,\3\ from making improvements to their 
campuses. Just this year, a report documented the continuing 
difficulty some HBCUs have had raising capital in the private 
bond market.\4\
---------------------------------------------------------------------------
    \1\See e.g., Sweatt v. Painter, 339 U.S. 629 (1950); McLaurin v. 
Okla. St. Regents of Higher Educ., 339 U.S. 637 (1950); Richardson, 
Jeanita W., and Harris J. John. ``Brown and Historically Black Colleges 
and Universities (HBCUs): A Paradox of Desegregation Policy.'' The 
Journal of Negro Education 73.3 (2004): 365-78.
    \2\See e.g., Higher Education Act of 1965, 20 U.S.C. 1060 321 
(2012) (``the current state of Black colleges and universities is 
partly attributable to the discriminatory action of the States and the 
Federal Government . . .''); Dougal, C, Gao, P., Mayew, W. J., & 
Parsons, C. A. (2015, August). What's in a (school) name? Racial 
discrimination in higher education bond markets. Retrieved from http://
w4.stern.nyu.edu/finance/docs/pdfs/Seminars/1503w-parsons.pdf.
    \3\The first HBCUs, Cheney University and Lincoln University, were 
founded in 1837 and 1854 respectively.
    \4\Dougal, supra note 2, at 3.
---------------------------------------------------------------------------
    Recognizing these challenges, the HBCU Capital Financing 
Program was created in the Higher Education Amendments of 1992 
to help fund capital projects at a lower cost to these 
institutions. The HBCU Capital Financing Program acts as a loan 
guarantee program, ensuring the payment of principal and 
interest on bonds by using funds from the U.S. Department of 
the Treasury to ultimately cover the cost. The program allows 
institutions to finance, or refinance, the repair, renovation, 
and construction of capital projects. Funded projects can range 
from the construction of classroom facilities to the repair of 
sewer and drainage systems. The program also helps ensure 
students at HBCUs receive their education in safe, up-to-date 
facilities with access to the modern technology and equipment 
necessary to provide a 21st century education.

Promoting access

    The HBCU Capital Financing Program provides support to 
some, but not all, institutions in need of additional 
assistance to finance capital projects. In 2006, 14 years after 
the HBCU Capital Financing Program was authorized, only 14 
schools, or slightly more than 10 percent of HBCUs, were 
participating in the program. Currently, 43 HBCUs are receiving 
loans, but fewer than half of all HBCUs have ever originated a 
loan with the program.\5\
---------------------------------------------------------------------------
    \5\ http://gao.gov/products/GAO-07-64.
---------------------------------------------------------------------------
    The Committee recognizes that while public and private 
institutions desire to utilize the program, many public HBCUs 
have experienced difficulty accessing program funds due to 
statutory requirements. Since the program is based on bonds, 
participating schools are required to place 5 percent of their 
loans into a pooled escrow account that helps cover payments to 
bondholders should any institution default on its loan 
obligation. This account acts as bond insurance to ensure the 
payments of principal and interest on the bonds are covered and 
bondholders are made whole.\6\ Public HBCUs have been denied 
participation in the program due to states' concerns over the 
requirement that 5 percent of the loan funds, which the states 
view as state funds, must go into the escrow account. Today, 
according to the U.S. Department of Education, the escrow 
account is at $50 million, with only one school drawing down 
from the account.
---------------------------------------------------------------------------
    \6\Authority is given to the Secretary to designate a private, for-
profit organization to serve as the designated bonding authority (DBA). 
The DBA is included in the program to serve as the issuer of qualified 
bonds. The proceeds of these bonds are used to issue loans to 
participating HBCUs. To ensure payments on the issued bonds, the DBA 
uses the loan payments from the participating HBCUs. If a HBCU is 
unable to make a payment, the DBA can draw from the escrow account to 
cover the payment on the bond.
---------------------------------------------------------------------------
    To better reflect the intention and purpose of the escrow 
account, the HBCU Capital Financing Improvement Act renames 
this account a ``bond insurance fund.'' This small change will 
help more public HBCUs access the program by easing the 
concerns of some state governments who are unsure of the 
account's purpose. In addition, this re-classification will 
reinforce with participating institutions that their 5 percent 
contributions are not a regulatory burden but a necessary 
protection for bondholders who participate in the program. This 
is a good first step to reform the insurance requirements of 
the program.

Improving financial counseling

    The sizable investments made by the HBCU Capital Financing 
Program require participating schools have a requisite level of 
financial skill to handle the funds. The current outstanding 
balance for the HBCU Capital Financing Program is about $1.11 
billion, with 43 institutions currently receiving loan amounts 
ranging from $7.5 million to $165 million.\7\ Since 1996, 77 
bonds have been issued, resulting in about $310 million in loan 
proceeds for public HBCUs and $1.25 billion in loan proceeds 
for private HBCUs.\8\
---------------------------------------------------------------------------
    \7\ http://www2.ed.gov/programs/hbcucapfinance/awards.html.
    \8\Id.
---------------------------------------------------------------------------
    Given the magnitude of the program and loan amounts, it is 
important for current and future program participants to 
receive thorough financial counseling to better ensure a 
successful experience with the program. Financial counseling 
can help a school find its financial footing, establish a plan 
to make timely payments to the program, or improve the overall 
financial health of the institution. This counseling will lead 
to more institutions successfully making their payments on time 
and increased financial stability.
    The HBCU Capital Financing Improvement Act specifically 
authorizes the Secretary to provide financial counseling to 
HBCUs to prepare the institutions to qualify, apply for, and 
maintain a capital improvement loan. Thorough financial 
counseling can help guide institutional leaders as they 
critically think about difficult questions, such as the 
appropriate loan amount needed to help meet the institutions 
needs while remaining in good financial standing to make the 
monthly payments on time.
    The Committee hopes the additional counseling will involve 
helping institutions in the maintenance and growth of endowment 
funds. Many non-HBCUs are able to sustain long campaigns of 
capital improvements without fear of financial strain due to 
large pools of endowed funds that have grown with the 
institution over time. HBCU endowments are on average 
significantly lower than other institutions. Based on data for 
2014, the endowments of the Top 10 HBCUs combined would make 
them collectively only the 54th largest university 
endowment.\9\
---------------------------------------------------------------------------
    \9\Using statistics collected by the National Association of 
College and University Business Officers (NACUBO) in 2014, the ten 
largest endowments at HBCUs totaled approximately $1.729 billion 
combined. As one university, they would place between #53 UCLA ($1.732 
billion) and #54 Boston University ($1.616 billion). http://
www.nacubo.org/Documents/EndowmentFiles/
2014_Endowment_Market_Values_Revised2.27.15.
pdf.
---------------------------------------------------------------------------
    Financial counseling that includes some aspects germane to 
endowments may help improve the financial outlook of 
institutions. Helping these institutions become more self-
sustaining will ideally lead to a decrease in the loan amounts 
needed for capital projects and decrease the overall financial 
burden on the schools.

Strengthening congressional oversight

    Along with the creation of the HBCU Capital Financing 
Program, current law includes a board to advise the Secretary 
on the capital needs of HBCUs, how the program can meet those 
needs, and ways the program can be improved. This advisory 
board consists of presidents from both private and public 
HBCUs, as well as representatives from the United Negro College 
Fund, National Association for Equal Opportunity in Higher 
Education, Thurgood Marshall College Fund, and the executive 
director of the White House Initiative on HBCUs. This advisory 
board is appointed by the Secretary, with the Secretary or an 
appointed designee also serving on the board.
    The advisory board is required by law to meet at least 
twice yearly and was tasked with providing Congress a report, 
no later than six months after the 2008 enactment of the Higher 
Education Opportunity Act (HEOA), on the fiscal status and 
financial condition of at least 10 HBCUs participating in the 
program. The report was also to include any administrative or 
legislative recommendations for addressing construction 
financing issues. According to a 2006 study by the U.S. 
Government Accountability Office (GAO), the advisory board had 
only convened a total of ``three times in the last 12 years,'' 
and GAO recommended the Secretary comply with the law by 
regularly convening and consulting with the advisory board.\10\ 
Due to this finding, the HEOA mandated the Secretary submit a 
report to Congress on the progress of implementing the 
recommendations produced in the study. While more meetings have 
taken place since the findings of the study, the advisory board 
still appears to be out of compliance with the statute, most 
recently meeting in spring 2015.
---------------------------------------------------------------------------
    \10\http://gao.gov/products/GAO-07-64.
---------------------------------------------------------------------------
    The mere scale of the HBCU Capital Financing Program 
suggests it is important for Congress to remain apprised of the 
usefulness and current standing of the program. Given this, the 
HBCU Capital Financing Improvement Act requires the advisory 
board to provide an annual report to Congress giving an 
overview of all the loans awarded, the fiscal status and 
financial condition of at least 10 of the institutions 
participating in the program, and any administrative and 
legislative recommendations for improving construction 
financing issues. The Committee expects this requirement will 
improve compliance with the advisory board meetings requirement 
in the statute.
    While the advisory board will only be required to provide 
the fiscal status and financial condition of at least 10 
institutions in each report, the Committee expects the advisory 
board will provide this information for all participating 
institutions over the span of the annual reports, with updates 
to the status of the institutions as needed. The Committee also 
expects the advisory board report will include, at least, the 
following as part of the overview of loans: the most recent 
outstanding balance of the program; the current and remaining 
lengths of all loans; the funding level of the bond insurance 
fund; the loan amounts for both public and private HBCUs; and 
any specific details about each loan, such as whether the loan 
has a fixed or variable interest rate, the interest rate 
amount, and repayment status.
    Requiring the advisory board to provide an annual report 
will help ensure the board convenes and discusses the issues 
that are most concerning to HBCUs. Also, more regular and 
consistent communication with the board will help keep Congress 
updated on the health of the program and the needs of the 
participating HBCUs.

Conclusion

    With greater access, financial counseling, and oversight, 
the Committee believes H.R. 5530 will strengthen the HBCU 
Capital Financing Program. We expect with these changes, 
institutions will be better able to utilize the bond proceeds 
to improve HBCU campuses. By allowing for low-cost capital to 
flow to HBCUs, the Committee hopes to improve the educational 
experience for more students at many of our nations most 
historic campuses.

                      Section-by-Section Analysis

Section 1. Short title

    States the short title is the HBCU Capital Financing 
Improvement Act.

Section 2. Bond insurance

    Amends Section 343 of the Higher Education Act of 1965 by 
striking the term ``escrow account'' where it appears and 
replacing it with the term ``bond insurance fund.'' Other minor 
technical changes are made as well.

Section 3. Strengthening technical assistance

    Gives the Secretary the authority to provide financial 
counseling as well as technical assistance to institutions to 
apply, qualify for, and maintain capital improvement loans.

Section 4. HBCU capital financing advisory board

    Amends section 347 to require the advisory board to report 
annually to Congress and provide an overview of all the loans 
made and any administrative or legislative recommendations to 
improve the program.

                       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. 5530, the HBCU Capital Financing Improvement Act, 
increases access to, and strengthens congressional oversight 
of, the Historically Black College and University Capital 
Financing Program.

                       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. 5530 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. 5530 are to increase access to, and strengthen 
congressional oversight of, the Historically Black College and 
University Capital Financing Program.

                    Duplication of Federal Programs

    No provision of H.R. 5530 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. 5530 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. 5530 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. 5530, the HBCU 
Capital Financing Improvement 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. 5530--HBCU Capital Financing Improvement Act

    H.R. 5530 would amend the reporting requirements for the 
Historically Black College and University (HBCU) Advisory 
Board, which advises the Department of Education about the HBCU 
Capital Financing Program. It also would allow the department 
to provide financial counseling to HBCUs to better prepare them 
to qualify for that program.
    Based on current funding levels for administering this 
program ($334,000 for 2016), CBO estimates that implementing 
H.R. 5530 would have a negligible additional effect on 
discretionary spending. 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. 5530 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 5530 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. 5530. 
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 III--INSTITUTIONAL AID

           *       *       *       *       *       *       *

PART D--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING

           *       *       *       *       *       *       *

SEC. 343. FEDERAL INSURANCE FOR BONDS.

  (a) General Rule.--Subject to the limitations in section 344, 
the Secretary is authorized to enter into insurance agreements 
to provide financial insurance to guarantee the full payment of 
principal and interest on qualified bonds upon the conditions 
set forth in subsections (b), (c) and (d).
  (b) Responsibilities of the Designated Bonding Authority.--
The Secretary may not enter into an insurance agreement 
described in subsection (a) unless the Secretary designates a 
qualified bonding authority in accordance with sections 345(1) 
and 346 and the designated bonding authority agrees in such 
agreement to--
          (1) use the proceeds of the qualified bonds, less 
        costs of issuance not to exceed 2 percent of the 
        principal amount thereof, to make loans to eligible 
        institutions or for deposit into [an] a [escrow 
        account] bond insurance fund for repayment of the 
        bonds;
          (2) provide in each loan agreement with respect to a 
        loan that not less than 95 percent of the proceeds of 
        the loan will be used--
                  (A) to finance the repair, renovation, and, 
                in exceptional cases, construction or 
                acquisition, of a capital project; or
                  (B) to refinance an obligation the proceeds 
                of which were used to finance the repair, 
                renovation, and, in exceptional cases, 
                construction or acquisition, of a capital 
                project;
          (3)(A) charge such interest on loans, and provide for 
        such a schedule of repayments of loans, as will, upon 
        the timely repayment of the loans, provide adequate and 
        timely funds for the payment of principal and interest 
        on the bonds; and
          (B) require that any payment on a loan expected to be 
        necessary to make a payment of principal and interest 
        on the bonds be due not less than 60 days prior to the 
        date of the payment on the bonds for which such loan 
        payment is expected to be needed;
          (4) prior to the making of any loan, provide for a 
        credit review of the institution receiving the loan and 
        assure the Secretary that, on the basis of such credit 
        review, it is reasonable to anticipate that the 
        institution receiving the loan will be able to repay 
        the loan in a timely manner pursuant to the terms 
        thereof;
          (5) provide in each loan agreement with respect to a 
        loan that, if a delinquency on such loan results in a 
        funding under the insurance agreement, the institution 
        obligated on such loan shall repay the Secretary, upon 
        terms to be determined by the Secretary, for such 
        funding;
          (6) assign any loans to the Secretary, upon the 
        demand of the Secretary, if a delinquency on such loan 
        has required a funding under the insurance agreement;
          (7) in the event of a delinquency on a loan, engage 
        in such collection efforts as the Secretary shall 
        require for a period of not less than 45 days prior to 
        requesting a funding under the insurance agreement;
          (8) establish [an] a [escrow account] bond insurance 
        fund--
                  (A) into which each eligible institution 
                shall deposit 5 percent of the proceeds of any 
                loan made under this part, with each eligible 
                institution required to maintain in the [escrow 
                account] bond insurance fund an amount equal to 
                5 percent of the outstanding principal of all 
                loans made to such institution under this part; 
                and
                  (B) the balance of which--
                          (i) shall be available to the 
                        Secretary to pay principal and interest 
                        on the bonds in the event of 
                        delinquency in loan repayment; and
                          (ii) shall be used to return to an 
                        eligible institution an amount equal to 
                        any remaining portion of such 
                        institution's 5 percent deposit of loan 
                        proceeds within 120 days following 
                        scheduled repayment of such 
                        institution's loan;
          (9) provide in each loan agreement with respect to a 
        loan that, if a delinquency on such loan results in 
        amounts being withdrawn from the [escrow account] bond 
        insurance fund to pay principal and interest on bonds, 
        subsequent payments on such loan shall be available to 
        replenish such [escrow account] bond insurance fund;
          (10) comply with the limitations set forth in section 
        344 of this part;
          (11) make loans only to eligible institutions under 
        this part in accordance with conditions prescribed by 
        the Secretary to ensure that loans are fairly allocated 
        among as many eligible institutions as possible, 
        consistent with making loans of amounts that will 
        permit capital projects of sufficient size and scope to 
        significantly contribute to the educational program of 
        the eligible institutions; and
          (12) limit loan collateralization, with respect to 
        any loan made under this part, to 100 percent of the 
        loan amount, except as otherwise required by the 
        Secretary.
  (c) Additional Agreement Provisions.--Any insurance agreement 
described in subsection (a) of this section shall provide as 
follows:
          (1) The payment of principal and interest on bonds 
        shall be insured by the Secretary until such time as 
        such bonds have been retired or canceled.
          (2) The Federal liability for delinquencies and 
        default for bonds guaranteed under this part shall only 
        become effective upon the exhaustion of all the funds 
        held in the [escrow account] bond insurance fund 
        described in subsection (b)(8).
          (3) The Secretary shall create a letter of credit 
        authorizing the Department of the Treasury to disburse 
        funds to the designated bonding authority or its 
        assignee.
          (4) The letter of credit shall be drawn upon in the 
        amount determined by paragraph (5) of this subsection 
        upon the certification of the designated bonding 
        authority to the Secretary or the Secretary's designee 
        that there is a delinquency on 1 or more loans and 
        there are insufficient funds available from loan 
        repayments and the [escrow account] bond insurance fund 
        to make a scheduled payment of principal and interest 
        on the bonds.
          (5) Upon receipt by the Secretary or the Secretary's 
        designee of the certification described in paragraph 
        (4) of this subsection, the designated bonding 
        authority may draw a funding under the letter of credit 
        in an amount equal to--
                  (A) the amount required to make the next 
                scheduled payment of principal and interest on 
                the bonds, less
                  (B) the amount available to the designated 
                bonding authority from loan repayments and the 
                [escrow account] bond insurance fund.
          (6) All funds provided under the letter of credit 
        shall be paid to the designated bonding authority 
        within 2 business days following receipt of the 
        certification described in paragraph (4).
  (d) Full Faith and Credit Provisions.--Subject to section 
343(c)(1) the full faith and credit of the United States is 
pledged to the payment of all funds which may be required to be 
paid under the provisions of this section.
  (e) Sale of Qualified Bonds.--Notwithstanding any other 
provision of law, a qualified bond guaranteed under this part 
may be sold to any party that offers terms that the Secretary 
determines are in the best interest of the eligible 
institution.

           *       *       *       *       *       *       *

SEC. 345. AUTHORITY OF THE SECRETARY.

   In the performance of, and with respect to, the functions 
vested in the Secretary by this part, the Secretary--
          (1) shall, within 120 days of the date of enactment 
        of the Higher Education Opportunity Act, publish in the 
        Federal Register a notice and request for proposals for 
        any private for-profit organization or entity wishing 
        to serve as the designated bonding authority under this 
        part, which notice shall--
                  (A) specify the time and manner for 
                submission of proposals; and
                  (B) specify any information, qualifications, 
                criteria, or standards the Secretary determines 
                to be necessary to evaluate the financial 
                capacity and administrative capability of any 
                applicant to carry out the responsibilities of 
                the designated bonding authority under this 
                part;
          (2) shall ensure that--
                  (A) the selection process for the designated 
                bonding authority is conducted on a competitive 
                basis; and
                  (B) the evaluation and selection process is 
                transparent;
          (3) shall--
                  (A) review the performance of the designated 
                bonding authority after the third year of the 
                insurance agreement; and
                  (B) following the review described in 
                subparagraph (A), implement a revised 
                competitive selection process, if determined 
                necessary by the Secretary in consultation with 
                the Advisory Board established pursuant to 
                section 347;
          (4) shall require that the first loans for capital 
        projects authorized under section 343 be made no later 
        than March 31, 1994;
          (5) may sue and be sued in any court of record of a 
        State having general jurisdiction or in any district 
        court of the United States, and such district courts 
        shall have jurisdiction of civil actions arising under 
        this part without regard to the amount in controversy, 
        and any action instituted under this part without 
        regard to the amount in controversy, and any action 
        instituted under this section by or against the 
        Secretary shall survive notwithstanding any change in 
        the person occupying the office of the Secretary or any 
        vacancy in such office;
          (6)(A) may foreclose on any property and bid for and 
        purchase at any foreclosure, or any other sale, any 
        property in connection with which the Secretary has 
        been assigned a loan pursuant to this part; and
          (B) in the event of such an acquisition, 
        notwithstanding any other provisions of law relating to 
        the acquisition, handling, or disposal of real property 
        by the United States, complete, administer, remodel and 
        convert, dispose of, lease, and otherwise deal with, 
        such property, except that--
                  (i) such action shall not preclude any other 
                action by the Secretary to recover any 
                deficiency in the amount of a loan assigned to 
                the Secretary; and
                  (ii) any such acquisition of real property 
                shall not deprive any State or political 
                subdivision thereof of its civil or criminal 
                jurisdiction in and over such property or 
                impair the civil rights under the State or 
                local laws of the inhabitants on such property;
          (7) may sell, exchange, or lease real or personal 
        property and securities or obligations;
          (8) may include in any contract such other covenants, 
        conditions, or provisions necessary to ensure that the 
        purposes of this part will be achieved;
          [(9) may, directly or by grant or contract, provide 
        technical assistance to eligible institutions to 
        prepare the institutions to qualify, apply for, and 
        maintain a capital improvement loan, including a loan 
        under this part; and]
          (9) may, directly or by grant or contract, provide 
        financial counseling and technical assistance to 
        eligible institutions to prepare the institutions to 
        qualify, apply for, and maintain a capital improvement 
        loan, including a loan under this part; and
          (10) not later than 120 days after the date of 
        enactment of the Higher Education Opportunity Act, 
        shall submit to the authorizing committees a report on 
        the progress of the Department in implementing the 
        recommendations made by the Government Accountability 
        Office in October 2006 for improving the Historically 
        Black College and Universities Capital Financing 
        Program.

SEC. 347. HBCU CAPITAL FINANCING ADVISORY BOARD.

  (a) Establishment and Purpose.--There is established within 
the Department of Education, the Historically Black College and 
Universities Capital Financing Advisory Board (hereinafter in 
this part referred to as the ``Advisory Board'') which shall 
provide advice and counsel to the Secretary and the designated 
bonding authority as to the most effective and efficient means 
of implementing construction financing on African American 
college campuses, and advise the Congress of the United States 
regarding the progress made in implementing this part. The 
Advisory Board shall meet with the Secretary at least twice 
each year to advise him as to the capital needs of historically 
Black colleges and universities, how those needs can be met 
through the program authorized by this part, and what 
additional steps might be taken to improve the operation and 
implementation of the construction financing program.
  (b) Board Membership.--
          (1) Composition.--The Advisory Board shall be 
        appointed by the Secretary and shall be composed of 11 
        members as follows:
                  (A) The Secretary or the Secretary's 
                designee.
                  (B) Three members who are presidents of 
                private historically Black colleges or 
                universities.
                  (C) Three members who are presidents of 
                public historically Black colleges or 
                universities.
                  (D) The president of the United Negro College 
                Fund, Inc., or the president's designee.
                  (E) The president of the National Association 
                for Equal Opportunity in Higher Education, or 
                the designee of the Association.
                  (F) The executive director of the White House 
                Initiative on historically Black colleges and 
                universities.
                  (G) The president of the Thurgood Marshall 
                College Fund, or the designee of the president.
          (2) Terms.--The term of office of each member 
        appointed under paragraphs (1)(B) and (1)(C) shall be 3 
        years, except that--
                  (A) of the members first appointed pursuant 
                to paragraphs (1)(B) and (1)(C), 2 shall be 
                appointed for terms of 1 year, and 3 shall be 
                appointed for terms of 2 years;
                  (B) members appointed to fill a vacancy 
                occurring before the expiration of a term of a 
                member shall be appointed to serve the 
                remainder of that term; and
                  (C) a member may continue to serve after the 
                expiration of a term until a successor is 
                appointed.
  (c) Additional Recommendations from Advisory Board.--
          (1) In general.--In addition to the responsibilities 
        of the Advisory Board described in subsection (a), the 
        Advisory Board shall advise the Secretary and the 
        authorizing committees regarding--
                  (A) the fiscal status and strategic financial 
                condition of not less than ten historically 
                Black colleges and universities that have--
                          (i) obtained construction financing 
                        through the program under this part and 
                        seek additional financing or 
                        refinancing under such program; or
                          (ii) applied for construction 
                        financing through the program under 
                        this part but have not received 
                        financing under such program; and
                  (B) the feasibility of reducing borrowing 
                costs associated with the program under this 
                part, including reducing interest rates.
          [(2) Report.--Not later than six months after the 
        date of enactment of theHigher Education Opportunity 
        Act, the Advisory Board shall prepare and submit a 
        report to the authorizing committees regarding the 
        historically Black colleges and universities described 
        in paragraph (1)(A) that includes administrative and 
        legislative recommendations for addressing the issues 
        related to construction financing facing such 
        historically Black colleges and universities.]
          (2) Report.--On an annual basis, the Advisory Board 
        shall prepare and submit to the authorizing committees 
        a report on the status of the historically Black 
        colleges and universities described in paragraph 
        (1)(A). That report shall also include--
                  (A) an overview of all loans in the capital 
                financing program, including the most recent 
                loans awarded in the fiscal year in which the 
                report is submitted; and
                  (B) administrative and legislative 
                recommendations, as needed, for addressing the 
                issues related to construction financing facing 
                historically Black colleges and universities.

           *       *       *       *       *       *       *

                                  [all]
```