59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–675 

EMPOWERING STUDENTS THROUGH ENHANCED 

FINANCIAL COUNSELING ACT 

JULY 11, 2016.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. KLINE, from the Committee on Education and the Workforce, 

submitted the following 

R E P O R T 

[To accompany H.R. 3179] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Education and the Workforce, to whom was 

referred the bill (H.R. 3179) to amend the loan counseling requirements under the Higher Education Act of 1965, and for other purposes, having considered the same, report favorably thereon with 

an amendment and recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Empowering Students Through Enhanced Financial 

Counseling Act’’. 

SEC. 2. ANNUAL COUNSELING. 

Section 485(l) of the Higher Education Act of 1965 (20 U.S.C. 1092(l)) is amended 

to read as follows: 

‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 

‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 

‘‘(A) IN GENERAL.—Each eligible institution shall ensure that each individual who receives a Federal Pell Grant or a loan made under part D 

(other than a Federal Direct Consolidation Loan) receives comprehensive 

information on the terms and conditions of such Federal Pell Grant or loan 

and the responsibilities the individual has with respect to such Federal Pell 

Grant or loan. Such information shall be provided, for each award year for 

which the individual receives such Federal Pell Grant or loan, in a simple 

and understandable manner— 

‘‘(i) during a counseling session conducted in person; 

‘‘(ii) online, with the individual acknowledging receipt of the information; or 

‘‘(iii) through the use of the online counseling tool described in subsection (n)(1)(B). 


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‘‘(B) USE OF INTERACTIVE PROGRAMS.—In the case of institutions not using 

the online counseling tool described in subsection (n)(1)(B), the Secretary 

shall require such institutions to carry out the requirements of subparagraph (A) through the use of interactive programs, during an annual counseling session that is in-person or online, that test the individual’s understanding of the terms and conditions of the Federal Pell Grant or loan 

awarded to the individual, using simple and understandable language and 

clear formatting. 

‘‘(2) ALL INDIVIDUALS.—The information to be provided under paragraph 

(1)(A) to each individual receiving counseling under this subsection shall include 

the following: 

‘‘(A) An explanation of how the individual may budget for typical educational expenses and a sample budget based on the cost of attendance for 

the institution. 

‘‘(B) An explanation that an individual has a right to annually request 

a disclosure of information collected by a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (15 U.S.C. 1681j(a)). 

‘‘(C) Based on the most recent data available from the American Community Survey available from the Department of Commerce, the estimated average income and percentage of employment in the State of domicile of the 

individual for individuals with— 

‘‘(i) a high school diploma or equivalent; 

‘‘(ii) some post-secondary education without completion of a degree or 

certificate; and 

‘‘(iii) a bachelor’s degree. 

‘‘(D) An introduction to the financial management resources provided by 

the Financial Literacy and Education Commission. 

‘‘(3) STUDENTS RECEIVING FEDERAL PELL GRANTS.—The information to be provided under paragraph (1)(A) to each student receiving a Federal Pell Grant 

shall include the following: 

‘‘(A) An explanation of the terms and conditions of the Federal Pell 

Grant. 

‘‘(B) An explanation of approved educational expenses for which the student may use the Federal Pell Grant. 

‘‘(C) An explanation of why the student may have to repay the Federal 

Pell Grant. 

‘‘(D) An explanation of the maximum number of semesters or equivalent 

for which the student may be eligible to receive a Federal Pell Grant, and 

a statement of the amount of time remaining for which the student may 

be eligible to receive a Federal Pell Grant. 

‘‘(E) An explanation that if the student transfers to another institution 

not all of the student’s courses may be acceptable in transfer toward meeting specific degree or program requirements at such institution, but the 

amount of time remaining for which a student may be eligible to receive 

a Federal Pell Grant, as provided under subparagraph (D), will not change. 

‘‘(F) An explanation of how the student may seek additional financial assistance from the institution’s financial aid office due to a change in the 

student’s financial circumstances, and the contact information for such office. 

‘‘(4) BORROWERS RECEIVING LOANS MADE UNDER PART D (OTHER THAN PARENT

PLUS LOANS).—The information to be provided under paragraph (1)(A) to a borrower of a loan made under part D (other than a Federal Direct PLUS Loan 

made on behalf of a dependent student) shall include the following: 

‘‘(A) To the extent practicable, the effect of accepting the loan to be disbursed on the eligibility of the borrower for other forms of student financial 

assistance. 

‘‘(B) An explanation of the use of the master promissory note. 

‘‘(C) An explanation that the borrower is not required to accept the full 

amount of the loan offered to the borrower. 

‘‘(D) An explanation that the borrower should consider accepting any 

grant, scholarship, or State or Federal work-study jobs for which the borrower is eligible prior to accepting Federal student loans. 

‘‘(E) A recommendation to the borrower to exhaust the borrower’s Federal 

student loan options prior to taking out private education loans, an explanation that Federal student loans typically offer better terms and conditions than private education loans, an explanation of treatment of loans 

made under part D and private education loans in bankruptcy, and an explanation that if a borrower decides to take out a private education loan— 


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‘‘(i) the borrower has the ability to select a private educational lender 

of the borrower’s choice; 

‘‘(ii) the proposed private education loan may impact the borrower’s 

potential eligibility for other financial assistance, including Federal financial assistance under this title; and 

‘‘(iii) the borrower has a right— 

‘‘(I) to accept the terms of the private education loan within 30 

calendar days following the date on which the application for such 

loan is approved and the borrower receives the required disclosure 

documents, pursuant to section 128(e) of the Truth in Lending Act 

(15 U.S.C. 1638(e)); and 

‘‘(II) to cancel such loan within 3 business days of the date on 

which the loan is consummated, pursuant to section 128(e)(7) of 

such Act (15 U.S.C. 1638(e)(7)). 

‘‘(F) An explanation of the approved educational expenses for which the 

borrower may use a loan made under part D. 

‘‘(G) Information on the annual and aggregate loan limits for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans. 

‘‘(H) Information on how interest accrues and is capitalized during periods when the interest is not paid by either the borrower or the Secretary. 

‘‘(I) In the case of a Federal Direct PLUS Loan or a Federal Direct Unsubsidized Stafford Loan, the option of the borrower to pay the interest 

while the borrower is in school. 

‘‘(J) The definition of half-time enrollment at the institution, during regular terms and summer school, if applicable, and the consequences of not 

maintaining at least half-time enrollment. 

‘‘(K) An explanation of the importance of contacting the appropriate offices at the institution of higher education if the borrower withdraws prior 

to completing the borrower’s program of study so that the institution can 

provide exit counseling, including information regarding the borrower’s repayment options and loan consolidation. 

‘‘(L) For a first-time borrower— 

‘‘(i) a statement of the anticipated balance on the loan for which the 

borrower is receiving counseling under this subsection; 

‘‘(ii) based on such anticipated balance, the anticipated monthly payment amount under, at minimum— 

‘‘(I) the standard repayment plan; and 

‘‘(II) an income-based repayment plan under section 493C, as determined using regionally available data from the Bureau of Labor 

Statistics of the average starting salary for the occupation in which 

the borrower has an interest in or intends to be employed; and 

‘‘(iii) an estimate of the projected monthly payment amount under 

each repayment plan described in clause (ii), based on the average cumulative indebtedness at graduation for borrowers of loans made under 

part D who are in the same program of study as the borrower. 

‘‘(M) For a borrower with an outstanding balance of principal or interest 

due on a loan made under this title— 

‘‘(i) a current statement of the amount of such outstanding balance 

and interest accrued; 

‘‘(ii) based on such outstanding balance, the anticipated monthly payment amount under, at minimum, the standard repayment plan and, 

using regionally available data from the Bureau of Labor Statistics of 

the average starting salary for the occupation the borrower intends to 

be employed, an income-based repayment plan under section 493C; and 

‘‘(iii) an estimate of the projected monthly payment amount under 

each repayment plan described in clause (ii), based on— 

‘‘(I) the outstanding balance described in clause (i); 

‘‘(II) the anticipated outstanding balance on the loan for which 

the student is receiving counseling under this subsection; and 

‘‘(III) a projection for any other loans made under part D that the 

borrower is reasonably expected to accept during the borrower’s 

program of study based on at least the expected increase in the 

cost of attendance of such program. 

‘‘(N) The obligation of the borrower to repay the full amount of the loan, 

regardless of whether the borrower completes or does not complete the program in which the borrower is enrolled within the regular time for program 

completion. 

‘‘(O) The likely consequences of default on the loan, including adverse 

credit reports, delinquent debt collection procedures under Federal law, and 


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litigation, and a notice of the institution’s most recent cohort default rate 

(defined in section 435(m)), an explanation of the cohort default rate, the 

most recent national average cohort default rate, and the most recent national average cohort default rate for the category of institution described 

in section 435(m)(4) to which the institution belongs. 

‘‘(P) Information on the National Student Loan Data System and how the 

borrower can access the borrower’s records. 

‘‘(Q) The contact information for the institution’s financial aid office or 

other appropriate office at the institution the borrower may contact if the 

borrower has any questions about the borrower’s rights and responsibilities 

or the terms and conditions of the loan. 

‘‘(5) BORROWERS RECEIVING PARENT PLUS LOANS FOR DEPENDENT STUDENTS.— 

The information to be provided under paragraph (1)(A) to a borrower of a Federal Direct PLUS Loan made on behalf of a dependent student shall include the 

following: 

‘‘(A) The information described in subparagraphs (A) through (C) and (N) 

through (Q) of paragraph (4). 

‘‘(B) The option of the borrower to pay the interest on the loan while the 

loan is in deferment. 

‘‘(C) For a first-time borrower of such loan— 

‘‘(i) a statement of the anticipated balance on the loan for which the 

borrower is receiving counseling under this subsection; 

‘‘(ii) based on such anticipated balance, the anticipated monthly payment amount under the standard repayment plan; and 

‘‘(iii) an estimate of the projected monthly payment amount under the 

standard repayment plan, based on the average cumulative indebtedness of other borrowers of Federal Direct PLUS Loans made on behalf 

of dependent students who are in the same program of study as the 

student on whose behalf the borrower borrowed the loan. 

‘‘(D) For a borrower with an outstanding balance of principal or interest 

due on such loan— 

‘‘(i) a statement of the amount of such outstanding balance; 

‘‘(ii) based on such outstanding balance, the anticipated monthly payment amount under the standard repayment plan; and 

‘‘(iii) an estimate of the projected monthly payment amount under the 

standard repayment plan, based on— 

‘‘(I) the outstanding balance described in clause (i); 

‘‘(II) the anticipated outstanding balance on the loan for which 

the borrower is receiving counseling under this subsection; and 

‘‘(III) a projection for any other Federal Direct PLUS Loan made 

on behalf of the dependent student that the borrower is reasonably 

expected to accept during the program of study of such student 

based on at least the expected increase in the cost of attendance 

of such program. 

‘‘(E) Debt management strategies that are designed to facilitate the repayment of such indebtedness. 

‘‘(F) An explanation that the borrower has the options to prepay each 

loan, pay each loan on a shorter schedule, and change repayment plans. 

‘‘(G) For each Federal Direct PLUS Loan made on behalf of a dependent 

student for which the borrower is receiving counseling under this subsection, the contact information for the loan servicer of the loan and a link 

to such servicer’s Website. 

‘‘(6) ANNUAL LOAN ACCEPTANCE.—Prior to making the first disbursement of a 

loan made under part D (other than a Federal Direct Consolidation Loan) to 

a borrower for an award year, an eligible institution, shall, as part of carrying 

out the counseling requirements of this subsection for the loan, ensure that 

after receiving the applicable counseling under paragraphs (2), (4), and (5) for 

the loan the borrower accepts the loan for such award year by— 

‘‘(A) signing the master promissory note for the loan; 

‘‘(B) signing and returning to the institution a separate written statement 

that affirmatively states that the borrower accepts the loan; or 

‘‘(C) electronically signing an electronic version of the statement described 

in subparagraph (B).’’. 

SEC. 3. EXIT COUNSELING. 

Section 485(b) of the Higher Education Act of 1965 (20 U.S.C. 1092(b)) is amended— 

(1) in paragraph (1)(A)— 


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(A) in the matter preceding clause (i), by striking ‘‘through financial aid 

offices or otherwise’’ and inserting ‘‘through the use of an interactive program, during an exit counseling session that is in-person or online, or 

through the use of the online counseling tool described in subsection 

(n)(1)(A)’’; 

(B) by redesignating clauses (i) through (ix) as clauses (iv) through (xii), 

respectively; 

(C) by inserting before clause (iv), as so redesignated, the following: 

‘‘(i) a summary of the outstanding balance of principal and interest due on 

the loans made to the borrower under part B, D, or E; 

‘‘(ii) an explanation of the grace period preceding repayment and the expected 

date that the borrower will enter repayment; 

‘‘(iii) an explanation that the borrower has the option to pay any interest that 

has accrued while the borrower was in school or that may accrue during the 

grace period preceding repayment or during an authorized period of deferment 

or forbearance, prior to the capitalization of the interest;’’; 

(D) in clause (iv), as so redesignated— 

(i) by striking ‘‘sample information showing the average’’ and inserting ‘‘information, based on the borrower’s outstanding balance described in clause (i), showing the borrower’s’’; and 

(ii) by striking ‘‘of each plan’’ and inserting ‘‘of at least the standard 

repayment plan and the income-based repayment plan under section 

493C’’; 

(E) in clause (ix), as so redesignated— 

(i) by inserting ‘‘decreased credit score,’’ after ‘‘credit reports,’’; and 

(ii) by inserting ‘‘reduced ability to rent or purchase a home or car, 

potential difficulty in securing employment,’’ after ‘‘Federal law,’’; 

(F) in clause (x), as so redesignated, by striking ‘‘consolidation loan under 

section 428C or a’’; 

(G) in clauses (xi) and (xii), as so redesignated, by striking ‘‘and’’ at the 

end; and 

(H) by adding at the end the following: 

‘‘(xiii) for each of the borrower’s loans made under part B, D, or E for which 

the borrower is receiving counseling under this subsection, the contact information for the loan servicer of the loan and a link to such servicer’s Website; and 

‘‘(xiv) an explanation that an individual has a right to annually request a disclosure of information collected by a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (15 U.S.C. 1681j(a)).’’; 

(2) in paragraph (1)(B)— 

(A) by inserting ‘‘online or’’ before ‘‘in writing’’; and 

(B) by adding before the period at the end the following: ‘‘, except that 

in the case of an institution using the online counseling tool described in 

subsection (n)(1)(A), the Secretary shall attempt to provide such information to the student in the manner described in subsection (n)(3)(C)’’; and 

(3) in paragraph (2)(C), by inserting ‘‘, such as the online counseling tool described in subsection (n)(1)(A),’’ after ‘‘electronic means’’. 

SEC. 4. ONLINE COUNSELING TOOLS. 

Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is further 

amended by adding at the end the following: 

‘‘(n) ONLINE COUNSELING TOOLS.— 

‘‘(1) IN GENERAL.—Beginning not later than 1 year after the date of enactment 

of the Empowering Students Through Enhanced Financial Counseling Act, the 

Secretary shall maintain— 

‘‘(A) an online counseling tool that provides the exit counseling required 

under subsection (b) and meets the applicable requirements of this subsection; and 

‘‘(B) an online counseling tool that provides the annual counseling required under subsection (l) and meets the applicable requirements of this 

subsection. 

‘‘(2) REQUIREMENTS OF TOOLS.—In maintaining the online counseling tools described in paragraph (1), the Secretary shall ensure that each such tool is— 

‘‘(A) consumer tested, in consultation with other relevant Federal agencies, to ensure that the tool is effective in helping individuals understand 

their rights and obligations with respect to borrowing a loan made under 

part D or receiving a Federal Pell Grant; 

‘‘(B) understandable to students receiving Federal Pell Grants and borrowers of loans made under part D; and 

‘‘(C) freely available to all eligible institutions. 


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‘‘(3) RECORD OF COUNSELING COMPLETION.—The Secretary shall— 

‘‘(A) use each online counseling tool described in paragraph (1) to keep 

a record of which individuals have received counseling using the tool, and 

notify the applicable institutions of the individual’s completion of such 

counseling; 

‘‘(B) in the case of a borrower who receives annual counseling for a loan 

made under part D using the tool described in paragraph (1)(B), notify the 

borrower by when the borrower should accept, in a manner described in 

subsection (l)(6), the loan for which the borrower has received such counseling; and 

‘‘(C) in the case of a borrower described in subsection (b)(1)(B) at an institution that uses the online counseling tool described in paragraph (1)(A) of 

this subsection, the Secretary shall attempt to provide the information described in subsection (b)(1)(A) to the borrower through such tool.’’. 

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

(a) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, 

the Secretary of Education, acting through the Director of the Institute of Education 

Sciences, shall begin conducting a rigorous, longitudinal study of the impact and effectiveness of the student loan counseling— 

(1) provided under subsections (b), (l), and (n) of section 485 of the Higher 

Education Act of 1965 (20 U.S.C. 1092), as amended by this Act; and 

(2) provided through such other means as the Secretary of Education may determine. 

(b) CONTENTS.— 

(1) BORROWER INFORMATION.—The longitudinal study carried out under subsection (a) shall include borrower information, in the aggregate and 

disaggregated by race, ethnicity, gender, income, and status as an individual 

with a disability, on— 

(A) student persistence; 

(B) degree attainment; 

(C) program completion; 

(D) successful entry into student loan repayment; 

(E) cumulative borrowing levels; and 

(F) such other factors as the Secretary of Education may determine. 

(2) EXCEPTION.—The disaggregation under paragraph (1) shall not be required in a case in which the number of borrowers in a category is insufficient 

to yield statistically reliable information or the results would reveal personally 

identifiable information about an individual borrower. 

(c) INTERIM REPORTS.—Not later than 18 months after the commencement of the 

study under subsection (a), and annually thereafter, the Secretary of Education 

shall evaluate the progress of the study and report any short-term findings to the 

appropriate committees of Congress. 

SEC. 6. AVAILABILITY OF FUNDS. 

(a) USE OF EXISTING FUNDS.—Of the amount authorized to be appropriated for 

maintaining the Department of Education’s Financial Awareness Counseling Tool, 

$2,000,000 shall be available to carry out this Act and the amendments made by 

this Act. 

(b) NO ADDITIONAL FUNDS AUTHORIZED.—No funds are authorized to be appropriated by this Act to carry out this Act or the amendments made by this Act. 

PURPOSE

H.R. 3179, the Empowering Students through Enhanced Financial Counseling Act, promotes financial literacy through enhanced 

counseling for recipients of federal financial aid. 

COMMITTEE ACTION

As the Committee on Education and the Workforce (Committee) 

continues the Higher Education Act reauthorization process, increasing transparency and usefulness of higher education data; 

simplifying and improving the federal student aid programs; and 

promoting innovation, access, and completion remain top priorities. 


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112TH CONGRESS

Hearings—First session 

On March 1, 2011, the Committee held a hearing in Washington, 

D.C., on ‘‘Education Regulations: Weighing the Burden on Schools 

and Students.’’ The hearing was the first in a series examining the 

burden of federal, state, and local regulations on the nation’s education system. The purpose of the hearing was to uncover the damaging effects of federal regulations on schools and institutions. 

These rules increasingly stifle growth and innovation, raise operating costs, and limit student access to affordable colleges and universities throughout the nation. Testifying before the Committee 

were Dr. Edgar Hatrick, Superintendent, Loudon County Public 

Schools, Ashburn, Virginia; Ms. Kati Haycock, President, The Education Trust, Washington, D.C.; Mr. Gene Wilhoit, Executive Director, Council of Chief State School Officers, Washington, D.C.; and 

Mr. Christopher B. Nelson, President, St. John’s College, Annapolis, Maryland. 

On March 11, 2011, the Committee on Education and the Workforce Subcommittee on Higher Education and Workforce Training 

held a hearing in Washington, D.C., on ‘‘Education Regulations: 

Federal Overreach into Academic Affairs.’’ The purpose of the hearing was to discuss the most egregious and intrusive pieces of the 

program integrity regulations issued by the U.S. Department of 

Education, specifically, the state authorization regulation and the 

credit hour regulation, and to uncover the unintended consequences 

of the regulations to states and institutions of higher education. 

Testifying before the Subcommittee were Mr. John Ebersole, President, Excelsior College, Albany, New York; Dr. G. Blair Dowden, 

President, Huntington University, Huntington, Indiana; The Honorable Kathleen Tighe, Inspector General, U.S. Department of Education, Washington, D.C.; and Mr. Ralph Wolff, President, Western 

Association of Schools and Colleges, Alameda, California. 

On March 17, 2011, the Committee held a hearing in Washington, D.C., on ‘‘Education Regulations: Roadblocks to Student 

Choice in Higher Education.’’ The purpose of the hearing was to explore the harmful consequences of the gainful employment regulation issued by the U.S. Department of Education. Testifying before 

the Committee were Ms. Catherine Barreto, Graduate, Monroe College, and Senior Sales Associate, Doubletree Hotels, Brooklyn, New 

York; Mr. Travis Jennings, Electrical Supervisor of the Manufacturing Launch Systems Group, Orbital Sciences Corporation, Chandler, Arizona; Dr. Arnold Mitchem, President, Council for Opportunity in Education, Washington, D.C.; and Ms. Jeanne Herrmann, 

Chief Operating Officer, Globe University/Minnesota School of 

Business, Woodbury, Minnesota. 

On March 21, 2011, the Committee held a hearing in WilkesBarre, 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 


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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 DevelVerDate Sep 11 2014 03:07 Jul 15, 2016 Jkt 059006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR675.XXX HR675

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opment.’’ The purpose of the hearing was to highlight the work by 

local colleges and universities to respond to local and state economic needs. Testifying before the Subcommittee were The Honorable Knox White, Mayor, City of Greenville, Greenville, South 

Carolina; Mr. Werner Eikenbusch, Section Manager, Associate Development and Training, BMW Manufacturing Co., Spartanburg, 

South Carolina; Ms. Laura Harmon, Project Director, Greenville 

Works, Greenville, South Carolina; Dr. Brenda Thames, Vice President of Academic Development, Greenville Health System, Greenville, South Carolina; Mr. James F. Barker, President, Clemson 

University, Clemson, South Carolina; Dr. Thomas F. Moore, Chancellor, University of South Carolina Upstate, Spartanburg, South 

Carolina; Dr. Keith Miller, President, Greenville Technical College, 

Greenville, South Carolina; and Ms. Amy Hickman, Campus President, ECPI College of Technology, Greenville, South Carolina. 

On October 25, 2011, the Committee on Education and the Workforce Subcommittee on Higher Education and Workforce Training 

held a hearing in Washington, D.C., on ‘‘Government-Run Student 

Loans: Ensuring the Direct Loan Program is Accountable to Students and Taxpayers.’’ The purpose of the hearing was to examine 

the switch to and implementation of the Direct Loan program. Testifying before the Subcommittee were Mr. James W. Runcie, Chief 

Operating Officer, Office of Federal Student Aid, U.S. Department 

of Education, Washington, D.C.; Mr. Ron H. Day, Director of Financial Aid, Kennesaw State University, Kennesaw, Georgia; Ms. 

Nancy Hoover, Director of Financial Aid, Denison University, 

Granville, Ohio; and Mr. Mark. A. Bandre ́, Vice President for Enrollment Management and Student Affairs, Baker University, Baldwin City, Kansas. 

On November 30, 2011, the Committee on Education and the 

Workforce Subcommittee on Higher Education and Workforce 

Training held a hearing in Washington, D.C., on ‘‘Keeping College 

Within Reach: Discussing Ways Institutions Can Streamline Costs 

and Reduce Tuition.’’ The purpose of the hearing was to highlight 

innovative practices institutions of higher education are implementing to reduce their costs to limit tuition increases for students. 

Testifying before the Subcommittee were Ms. Jane V. Wellman, Executive Director, Delta Project on Postsecondary Costs, Productivity, and Accountability, Washington, D.C.; Dr. Ronald E. 

Manahan, President, Grace College and Seminary, Winona Lake, 

Indiana; Mr. Jamie P. Merisotis, President and Chief Executive Officer, Lumina Foundation for Education, Indianapolis, Indiana; and 

Mr. Tim Foster, President, Colorado Mesa University, Grand Junction, Colorado. 

Legislative action—First session 

On February 17, 2011, the House of Representatives considered 

an amendment offered by Committee Chairman John Kline (R– 

MN), Higher Education and Workforce Training Subcommittee 

Chairwoman Virginia Foxx (R–NC), and Rep. Alcee Hastings (D– 

FL) to H.R. 1, the Disaster Relief Appropriations Act of 2013. The 

amendment prohibited the use of funds by the U.S. Department of 

Education to implement and enforce the gainful employment regulation. The amendment was agreed to by a bipartisan vote of 289 

to 136. 


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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. Rau ́l 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. 


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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 stuVerDate Sep 11 2014 03:07 Jul 15, 2016 Jkt 059006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR675.XXX HR675

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dent 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, 

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sity, 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 


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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: 


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• 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; 

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garding 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. 


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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. 


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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 competencybased 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: 


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• 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 

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tion. 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 


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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), Rau ́l 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), Rau ́l Grijalva (D–AZ), Gregorio Sablan (D– 

MP), Mark Pocan (D–WI), Mark Takano (D–CA), Katherine Clark 


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(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: 


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• Rep. Joe Heck (R–NV) offered an amendment in the nature of 

a substitute to make conforming and technical changes. The 

amendment was adopted by voice vote. 

On June 20, 2016, Rep. Joe Heck (R–NV) along with Reps. 

Ruben Hinojosa (D–TX) and Raul Ruiz (D–CA) introduced H.R. 

5529, the Accessing Higher Education Opportunities Act. The bill 

expands the authorized uses of funds for Hispanic-Serving Institutions (HSIs) so they may promote dual enrollment opportunities 

and encourage Hispanic students to pursue doctoral degree programs in the healthcare industry. 

On June 22, 2016, the Committee considered H.R. 5529 in legislative session and reported it favorably, as amended, to the House 

of Representatives by voice vote. The Committee considered and 

adopted the following amendment to H.R. 5529: 

• Rep. Joe Heck (R–NV) offered an amendment in the nature of 

a substitute to make conforming and technical changes. The 

amendment was adopted by voice vote. 

On June 20, 2016, Reps. Alma Adams (D–NC) and Bradley 

Byrne (R–AL) introduced H.R. 5530, the HBCU Capital Financing 

Improvement Act. The bill improves the program by requiring the 

advisory board to send an annual report to Congress regarding the 

status of the Historically Black College and University (HBCU) 

Capital Financing Program. Additionally, the bill renames the escrow account to ‘‘bond insurance fund.’’ Lastly, this bill allows for 

financial counseling to potential eligible HBCUs to assist in their 

preparation to qualify, apply for, and maintain a capital improvement loan. 

On June 22, 2016, the Committee considered H.R. 5530 in legislative session and reported it favorably, as amended, to the House 

of Representatives by voice vote. The Committee considered and 

adopted the following amendment to H.R. 5530: 

• Rep. Alma Adams (D–NC) offered an amendment in the nature 

of a substitute to make conforming and technical changes. The 

amendment was adopted by voice vote. 

SUMMARY

The Empowering Students through Enhanced Financial Counseling Act creates a roadmap to repayment for borrowers by improving the timing and frequency of loan counseling and allows 

counseling to be tailored to a borrower’s individual situation. The 

legislation ensures both student and parent borrowers have the 

most current information by requiring annual counseling before 

they take out loans. 

The legislation requires annual counseling for student borrowers 

to include recommendations to exhaust available grant, workstudy, and scholarship assistance before taking out loans, as well 

as a recommendation to exhaust federal student loan options before 

taking out a private loan. The counseling must also include a notice informing borrowers they are not required to accept the full 

amount of the loan they are offered and information on any outstanding federal loan balance the borrower may have. Based on 

that outstanding balance and any new loans being taken out, the 

information must include anticipated monthly payments under 

standard and income-based repayment plans. 


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The legislation requires counseling for borrowers of Parent PLUS 

loans on behalf of dependent students. Similar to counseling for 

student borrowers, the counseling will provide parent borrowers individualized information on their outstanding loan balance and on 

anticipated monthly payments. The counseling will also include 

debt management strategies, information on the National Student 

Loan Data System, and contact information for the servicer of each 

loan. 

Additionally, the legislation bolsters exit counseling for students. 

Exit counseling under the bill will include information on the borrower’s outstanding loan balance, anticipated monthly payments 

under the standard and income-based repayment plans, the grace 

period preceding repayment, as well as contact information for 

those organizations servicing the borrower’s loans. This information 

will empower borrowers to make smart financial decisions as they 

leave school and begin to repay their college loan commitments. 

The legislation requires colleges annually to provide important 

counseling and disclosures to Pell Grant recipients. A Pell Grant 

recipient will receive counseling on the terms and conditions of his 

or her grant; the approved educational expenses to which the grant 

could be applied; the maximum length of time a student is eligible 

to receive Pell Grants; the amount of assistance a student is eligible to receive; a notice that Pell Grant eligibility is not reset when 

a student transfers institutions; conditions under which a student 

may be required to repay a Pell Grant; and how a student may 

seek additional assistance due to a change in his or her financial 

circumstances. All aid recipients will also receive state-specific information on the average income and employment status of individuals based on various levels of educational attainment, and Pell 

Grant recipients and student borrowers will receive an introduction 

to the Financial Literacy and Education Commission’s financial 

management resources. 

The legislation requires the Secretary to maintain a consumertested, online counseling tool institutions could use to provide required counseling to their students. Institutions could choose to use 

this tool to provide their students financial counseling or they could 

offer institution-created counseling directly to their students, either 

during an in-person session or through an online tool created for 

the institution. 

Finally, the legislation directs the Secretary, acting through the 

Director of IES, to conduct a longitudinal study of the impact and 

effectiveness of the new annual counseling, updated exit counseling, and online counseling tool, as well as counseling provided 

through other means determined by the Secretary. The evaluation 

will also explore how counseling affects outcomes for students of 

different races, ethnicities, genders, and income levels. 

COMMITTEE VIEWS

Introduction 

With tuition increasing and economic pressures faced by graduates mounting, responsibly financing a higher education has 

never been more critical. However, many students and parents are 

unprepared to navigate the complex maze of loans and grants offered by the federal government, states, the private sector, and inVerDate Sep 11 2014 03:07 Jul 15, 2016 Jkt 059006 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\HR675.XXX HR675

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stitutions of higher education. Further, upon graduation, many borrowers also struggle to manage the repayment of the loans used to 

finance their education, leading to significant financial hardship 

and greater risk for taxpayers. Student financial literacy is vital to 

reversing this trend, yet current efforts are failing to equip students and parents with the crucial information they need to make 

wise financial decisions. 

Many students never receive meaningful financial literacy assistance as they review options for paying for college. The Higher Education Act currently requires counseling for only those students receiving federal student loans, while parents who take out loans on 

behalf of their student as well as students who receive only a Pell 

Grant do not receive any counseling. More robust and timely financial literacy support must be made available. 

Enhancing loan counseling for students 

To help students make smart decisions about financing their 

higher education, Reps. Brett Guthrie (R–KY), Rick Allen (R–GA), 

and Suzanne Bonamici (D–OR) introduced H.R. 3179, the Empowering Students through Enhanced Financial Counseling Act. H.R. 

3179 improves the timing and frequency of loan counseling and ensures students have the most current information available to 

them. Under current law, students who receive federal student 

loans are required to complete one-time entrance counseling only 

regarding the terms and conditions of their loans. This counseling 

is only required to occur prior to disbursement of the loan, so many 

students receive it after they have already decided how much to 

borrow. During a November 13, 2013, hearing entitled ‘‘Keeping 

College Within Reach: Simplifying Federal Student Aid,’’ the Committee explored opportunities to streamline the federal aid system 

for students. At the hearing, Ms. Jennifer Mishory, Deputy Director of Young Invincibles, highlighted the need for enhanced and 

more frequent financial aid counseling: 

In a recent Young Invincibles survey, 40 percent of highdebt borrower respondents reported that they did not receive federally mandated loan counseling. It is perhaps unlikely that so many schools are out of compliance, but that 

statistic warns us that many young people benefit so little 

from loan counseling that they do not remember receiving 

it—or did not consider what they received to constitute 

counseling. 

With student loan default rates on the rise, the Committee believes students should be given a complete picture of not only their 

rights and obligation with respect to their federal loans, but also 

the impact taking out loans may have on their financial futures 

each year—before they accept a new round of student loans. H.R. 

3179 requires loan counseling to occur annually before a student 

accepts a federal student loan for the year. The legislation also requires counseling be personalized to the individual borrower’s situation, rather than just providing general information applicable to 

a range of borrowers. In the course of just one school year, Indiana 

University was able to reduce undergraduate Stafford loan disbursements by 11 percent, or $31 million, by telling students annually what their monthly payment would be after graduation before 


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1http://www.bloomberg.com/news/2014-07-03/here-s-how-indiana-university-students-borrowed-31-million-less.html. 2http://www.nytimes.com/2015/09/01/upshot/why-students-with-smallest-debts-need-the-greatest-help.html. 3 3http://trends.collegeboard.org/sites/default/files/trends-student-aid-web-final-508-2.pdf. p. 4. 

4http://ticas.org/sites/default/files/publfiles/privatelloanlfactsltrends.pdf. 

they took out loans for the next year. This was more than five 

times the decrease in outlays at four-year public institutions nationally.1 Data also show borrower defaults concentrate around the 

millions of students with smaller debts who drop out without a degree. In fact, 34 percent of those borrowing under $5,000 for college 

eventually end up in default.2 Annual counseling that includes individualized anticipated monthly payments under income-based repayment can help student borrowers who do not complete college 

avoid these harmful defaults. The Committee believes better information about loans and the post-college obligations and responsibilities that come with those loans will help students make wise borrowing decisions. 

During a March 17, 2015, Committee on Education and Workforce Subcommittee on Higher Education and Workforce Training 

hearing entitled ‘‘Strengthening America’s Higher Education System,’’ Michael J. Bennett, Associate Vice President of Financial Assistance Services at St. Petersburg College in Florida, highlighted 

the complexity of the federal student loan system, the confusion 

students often face, and the need for enhanced loan counseling: 

One online entrance and exit counseling session is not 

enough for some students to fully understand the realities 

of excessive debt and over-borrowing. . . . We also must 

embrace at the institutional level the importance of financial literacy. And lastly and most importantly, these initiatives and simplification efforts must be paired with the 

availability of personalized, comprehensive financial education services to help students. 

About 61 percent of students who earned bachelor’s degrees in 

the 2013–2014 academic year from the public and private nonprofit 

four-year schools at which they began their studies graduated with 

debt, and that debt averaged $26,900—a 17 percent increase since 

the 2003–2004 academic year.3 In addition, during the 2011–2012 

academic year, roughly half of private loan borrowers did not exhaust federal Stafford loan options before taking out private student loans.4 The Committee is concerned about the growing 

amount of student loan debt in the country and wants to ensure 

students are aware of the terms and conditions of their student 

loans and the differences between options that may be available to 

them. Annual counseling will now include recommendations for 

students to exhaust available grant, work-study, and scholarship 

assistance before taking out loans, a recommendation to exhaust 

federal student loan options before taking out a private loan, and 

an explanation of the rights and obligations associated with a private loan. The counseling will also include a notice that students 

are not required to accept the full amount of the federal student 

loan offered and information on any outstanding federal student 

loan balance the borrower may have. 

The Committee believes information should be available to help 

students make the most informed decisions about ways to finance 


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5http://trends.collegeboard.org/sites/default/files/trends-student-aid-web-final-508-2.pdf. 

their postsecondary education and encourages the Secretary of 

Education to make annual percentage rates of federal student 

loans under part D of the Higher Education Act publically available 

to current and prospective borrowers. The Committee feels annual 

percentage rates will provide borrowers with accurate rates for 

their federal student loans, particularly as it relates to grad and 

parent PLUS loans, so they will not be surprised by the fees associated with them. 

The Committee also believes there is other important information apart from rates that students should both be aware of and 

have access to when making these decisions. Federal loans for example, offer income-based repayment plans, loan forgiveness options, eligibility for deferment or forbearance, fixed interest rates, 

eligibility for a direct consolidation loan, and most do not require 

a credit check. A system designed to help students make informed 

choices should include these benefits as well as annual percentage 

rates to help borrowers determine which loan is best for them. 

H.R. 3179 also requires more robust exit counseling. Under current law, students who receive federal student loans must complete 

exit counseling before they conclude their course of study. This 

counseling must include information on available repayment plans, 

debt management strategies, and loan forgiveness options; however, this counseling is very general and does not provide any information on the borrower’s specific situation. Under H.R. 3179, exit 

counseling includes a statement of the borrower’s outstanding loan 

balance; anticipated monthly payments based on the borrower’s actual balance under both the standard repayment plan and incomebased repayment plan, based on the borrower’s anticipated salary; 

information on the grace period preceding repayment; and contact 

information for those organizations servicing the borrower’s loans. 

The Committee believes this additional information empowers borrowers to make smarter financial decisions as they leave school 

and begin to repay their college loan commitments. 

Parent PLUS borrowers 

Parents taking out a federal loan to help their children achieve 

the dream of a postsecondary education comprised over 11 percent 

of federal student loan volume disbursed last year.5 Parent borrowers are subject to the majority of the same terms, conditions, 

and responsibilities as student borrowers, but they can borrow up 

to the cost of attendance—much more than the typical student borrower. However, parent borrowers currently receive very little information about their loan obligations or assistance in planning for 

repayment. The Committee believes providing to parents the same 

information and disclosures students receive prior to taking out a 

loan is crucial for encouraging smart borrowing and on-time repayment. The Empowering Students through Enhanced Financial 

Counseling Act requires annual counseling for all borrowers of a 

Parent PLUS loan prior to, or in conjunction with, the acceptance 

of the Parent PLUS loan. 

In 2014, the U.S. Department of Education released three-year 

cohort default rates for borrowers of Parent PLUS loans that covered a multi-year period from FY 2006–FY 2010. The most current 


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6http://www2.ed.gov/policy/highered/reg/hearulemaking/2012/programintegrity.html. 

7http://chronicle.com/blogs/headcount/new-research-points-to-gaps-in-student-loan-counseling/ 

38665?cid=at&utmlsource=at&utmlmedium=en. 

cohort default rate for borrowers who had a student at any type of 

school was 4.1 percent, up from 1.8 percent in 2006.6 To stop this 

upward trend, the Committee believes these parent borrowers 

should be provided with counseling each year they wish to take out 

an additional loan. Similar to counseling for student borrowers, the 

counseling will provide parent borrowers individualized information on their outstanding loan balance and anticipated monthly 

payments based on the actual balance. The counseling will also include debt management strategies, information on the National 

Student Loan Data System, and contact information for the 

servicer of each of their loans. 

Better information for Pell Grant recipients 

The Empowering Students through Enhanced Financial Counseling Act requires all recipients of a Pell Grant to receive annual 

disclosures on the terms and conditions of their grants. The disclosures will include information on the approved educational expenses to which the grants could be applied, the conditions under 

which a student may be required to repay Pell Grants, and how 

students may seek additional assistance due to changes in their financial circumstances. Additionally, the disclosures will provide 

students with information on the maximum number of semesters, 

or the equivalent, for which they may be eligible to receive Pell 

Grants, as well as a statement of the actual amount of time remaining for which they personally may be eligible, and a notice 

that Pell Grant eligibility does not reset when a student transfers 

schools. The information will ensure students are aware of their 

time-limited eligibility to receive Pell Grants and would encourage 

them to complete their academic program prior to exhausting their 

eligibility for the program. The Committee recognizes the important role the Pell Grant program plays in helping low-income students access and complete a postsecondary education and does not 

intend for this counseling to be a hurdle for students to receive 

their grants. H.R. 3179 ensures those students have the knowledge 

needed to use their Pell Grant eligibility in the most effective way 

possible. 

Developing a consumer-tested online tool 

A recent study on federally mandated student loan counseling 

that examined actual borrowers going through the federal government’s online counseling tool found borrowers thought the tool to 

be too text heavy and wanted more personalized information.7 The 

Committee appreciates the work the U.S. Department of Education 

has done in creating the Financial Awareness Counseling tool but 

believes more can be done to make the tool more relevant and 

meaningful for borrowers. The Empowering Students through Enhanced Financial Counseling Act requires the Secretary to maintain an online counseling tool institutions can use to provide required counseling to their students. The Committee expects the 

U.S. Department of Education to build upon the existing tool to 

meet this requirement of the legislation. Additionally, H.R. 3179 

requires the Department to conduct consumer testing of the online 


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financial aid counseling tool, in consultation with other relevant 

federal agencies, to ensure the information provided through the 

tool is presented in the most user-friendly manner possible to better assist students and parents in understanding their rights and 

obligations with respect to borrowing student loans or receiving 

Pell Grants. 

Recognizing some institutions already provide their students 

with robust loan counseling, H.R. 3179 allows institutions to choose 

the manner in which they provide counseling to their students and 

parents. Institutions have the option to provide financial counseling directly, either during an in-person session or through an online tool created for or by the institution, or an institution can elect 

to have the students use the consumer-tested online tool administered by the Department. If an institution opts to provide the counseling themselves, the Committee notes an institution will meet the 

requirements under H.R. 3179 by contracting with entities that 

have experience in offering this type of counseling to students, such 

as guaranty agencies. If an institution chooses to use the U.S. Department of Education’s online tool, the Department will then be 

responsible for keeping a record of which individuals have completed counseling and notifying borrowers of the obligation to complete the counseling. 

Ensuring counseling is effective 

The Empowering Students through Enhanced Financial Counseling Act directs the Secretary, acting through the Director of IES, 

to conduct a rigorous longitudinal study of the impact and effectiveness of loan counseling on student persistence, program completion, 

successful entry into repayment, and cumulative borrowing, among 

other factors. The evaluation will explore how counseling affects 

outcomes for students of different races, ethnicities, genders, and 

income levels. This study is intended to help inform Congress, the 

Secretary, and institutions of whether further policy changes need 

to be made to promote successful outcomes. 

Conclusion 

The current financial counseling policies are inadequate for providing student and parent borrowers with the information they 

need to plan for college costs and responsibly manage their loan repayment. Currently, counseling occurs too late to guide students’ 

decisions for smart borrowing and too infrequently to make a lasting impression about the implications of student debt. The Empowering Students through Enhanced Financial Counseling Act provides students and parents the tools and information they need to 

borrow and repay their student loans in a responsible way. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

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

Section 2. Annual counseling 

Amends section 485(l) of the Higher Education Act to require institutions to ensure each individual who receives a federal student 


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loan also receives interactive annual counseling on the terms, conditions, and responsibilities of such loan. Likewise, Pell Grant recipients will receive annual counseling on the terms, conditions, 

and responsibilities of their grants. 

Requires institutions to ensure, as a part of carrying out the 

counseling requirements, all federal student loan borrowers annually affirmatively accept new loans prior to the disbursement of 

those loans. 

Section 3. Exit counseling 

Amends section 485(b) of the Higher Education Act to ensure students who receive federal student loans receive individualized, 

interactive exit counseling regarding their loan portfolios and repayment options. 

Section 4. Online counseling tools 

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

Section 5. Longitudinal study on the effectiveness of student loan 

counseling 

Requires the Secretary, acting through the Director of IES, to 

begin conducting a rigorous, longitudinal study of the impact and 

effectiveness of the counseling under section 485(b), (l), and (n), as 

well as counseling provided through other means determined by 

the Secretary. Requires the Secretary to report findings to the appropriate committees of Congress no later than 18 months after the 

study’s commencement and annually thereafter. 

Section 6. Availability of funds 

Reserves $2 million from funding authorized to be appropriated 

for maintaining the U.S. Department of Education’s Financial 

Awareness Counseling tool to be available to carry out this legislation and specifies no additional funds are authorized to be appropriated by this legislation. 

EXPLANATION OF AMENDMENTS

The amendments, including the amendment in the nature of a 

substitute, are explained in the body of this report. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch. H.R. 3179, the 

Empowering Students through Enhanced Financial Counseling Act, 

promotes financial literacy through enhanced counseling for recipients of federal financial aid. 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement of whether the 

provisions of the reported bill include unfunded mandates. This 

issue is addressed in the CBO letter. 


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31 

EARMARK STATEMENT

H.R. 3179 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of 

House Rule XXI. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause (3)(c) of House Rule XIII, the goals of 

H.R. 3179 are to promote financial literacy through enhanced counseling for recipients of federal financial aid. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 3179 establishes or reauthorizes a program 

of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The committee estimates that enacting H.R. 3179 does not specifically direct the completion of any specific rule makings within 

the meaning of 5 U.S.C. 551. 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) 

of rule X of the Rules of the House of Representatives, the committee’s oversight findings and recommendations are reflected in the 

body of this report. 

NEW BUDGET AUTHORITY AND CBO COST ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 1974, the 

committee has received the following estimate for H.R. 3179 from 

the Director of the Congressional Budget Office: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 5, 2016. 

Hon. JOHN KLINE, 

Chairman, Committee on Education and the Workforce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3179, the Empowering 

Students Through Enhanced Financial Counseling Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Justin Humphrey. 

Sincerely, 

KEITH HALL. 


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32 

Enclosure. 

H.R. 3179—Empowering Students Through Enhanced Financial 

Counseling Act 

H.R. 3179 would reserve $2 million from funding for the Department of Education to change the requirements for counseling students who participate in the federal student aid programs, such as 

federal student loans and Pell grants, and to study the effectiveness of that counseling. 

CBO estimates that implementing H.R. 3179 would cost $2 million for the department’s administrative expenses over the 2017– 

2021 period; such spending would be subject to the availability of 

appropriated funds. 

Enacting the bill would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

CBO estimates that enacting H.R. 3179 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2027. 

H.R. 3179 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Justin Humphrey. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

COMMITTEE COST ESTIMATE

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison of the costs 

that would be incurred in carrying out H.R. 3179. However, clause 

3(d)(2)(B) of that rule provides that this requirement does not 

apply when the committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional 

Budget Act. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

HIGHER EDUCATION ACT OF 1965 

* * * * * * * 


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TITLE IV—STUDENT ASSISTANCE 

* * * * * * * 

PART G—GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

PROGRAMS

* * * * * * * 

SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION 

FOR STUDENTS. 

(a) INFORMATION DISSEMINATION ACTIVITIES.—(1) Each eligible 

institution participating in any program under this title shall carry 

out information dissemination activities for prospective and enrolled students (including those attending or planning to attend 

less than full time) regarding the institution and all financial assistance under this title. The information required by this section 

shall be produced and be made readily available upon request, 

through appropriate publications, mailings, and electronic media, 

to an enrolled student and to any prospective student. Each eligible 

institution shall, on an annual basis, provide to all enrolled students a list of the information that is required to be provided by 

institutions to students by this section and section 444 of the General Education Provisions Act (commonly known as the ‘‘Family 

Educational Rights and Privacy Act of 1974’’), together with a 

statement of the procedures required to obtain such information. 

The information required by this section shall accurately describe— 

(A) the student financial assistance programs available to 

students who enroll at such institution; 

(B) the methods by which such assistance is distributed 

among student recipients who enroll at such institution; 

(C) any means, including forms, by which application for student financial assistance is made and requirements for accurately preparing such application; 

(D) the rights and responsibilities of students receiving financial assistance under this title; 

(E) the cost of attending the institution, including (i) tuition 

and fees, (ii) books and supplies, (iii) estimates of typical student room and board costs or typical commuting costs, and (iv) 

any additional cost of the program in which the student is enrolled or expresses a specific interest; 

(F) a statement of— 

(i) the requirements of any refund policy with which the 

institution is required to comply; 

(ii) the requirements under section 484B for the return 

of grant or loan assistance provided under this title; and 

(iii) the requirements for officially withdrawing from the 

institution; 

(G) the academic program of the institution, including (i) the 

current degree programs and other educational and training 

programs, (ii) the instructional, laboratory, and other physical 

plant facilities which relate to the academic program, (iii) the 

faculty and other instructional personnel, and (iv) any plans by 

the institution for improving the academic program of the institution; 

(H) each person designated under subsection (c) of this section, and the methods by which and locations in which any 


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34 

person so designated may be contacted by students and prospective students who are seeking information required by this 

subsection; 

(I) special facilities and services available to students with 

disabilities; 

(J) the names of associations, agencies, or governmental bodies which accredit, approve, or license the institution and its 

programs, and the procedures under which any current or prospective student may obtain or review upon request a copy of 

the documents describing the institution’s accreditation, approval, or licensing; 

(K) the standards which the student must maintain in order 

to be considered to be making satisfactory progress, pursuant 

to section 484(a)(2); 

(L) the completion or graduation rate of certificate- or degree-seeking, full-time, undergraduate students entering such 

institutions; 

(M) the terms and conditions of the loans that students 

receive under parts B, D, and E; 

(N) that enrollment in a program of study abroad approved 

for credit by the home institution may be considered enrollment in the home institution for purposes of applying for Federal student financial assistance; 

(O) the campus crime report prepared by the institution pursuant to subsection (f), including all required reporting categories; 

(P) institutional policies and sanctions related to copyright infringement, including— 

(i) an annual disclosure that explicitly informs students that unauthorized distribution of copyrighted 

material, including unauthorized peer-to-peer file 

sharing, may subject the students to civil and criminal 

liabilities; 

(ii) a summary of the penalties for violation of Federal copyright laws; and 

(iii) a description of the institution’s policies with respect to unauthorized peer-to-peer file sharing, including disciplinary actions that are taken against students who engage in unauthorized distribution of 

copyrighted materials using the institution’s information technology system; 

(Q) student body diversity at the institution, including 

information on the percentage of enrolled, full-time students who— 

(i) are male; 

(ii) are female; 

(iii) receive a Federal Pell Grant; and 

(iv) are a self-identified member of a major racial or 

ethnic group; 

(R) the placement in employment of, and types of employment obtained by, graduates of the institution’s degree 

or certificate programs, gathered from such sources as 

alumni surveys, student satisfaction surveys, the National 

Survey of Student Engagement, the Community College 


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35 

Survey of Student Engagement, State data systems, or 

other relevant sources; 

(S) the types of graduate and professional education in 

which graduates of the institution’s four-year degree programs enrolled, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of 

Student Engagement, State data systems, or other relevant sources; 

(T) the fire safety report prepared by the institution pursuant to subsection (i); 

(U) the retention rate of certificate- or degree-seeking, 

first-time, full-time, undergraduate students entering such 

institution; and 

(V) institutional policies regarding vaccinations. 

(2) For the purpose of this section, the term ‘‘prospective student’’ 

means any individual who has contacted an eligible institution requesting information concerning admission to that institution. 

(3) In calculating the completion or graduation rate under subparagraph (L) of paragraph (1) of this subsection or under subsection (e), a student shall be counted as a completion or graduation if, within 150 percent of the normal time for completion of or 

graduation from the program, the student has completed or graduated from the program, or enrolled in any program of an eligible 

institution for which the prior program provides substantial preparation. The information required to be disclosed under such subparagraph— 

(A) shall be made available by July 1 each year to enrolled 

students and prospective students prior to the students enrolling or entering into any financial obligation; and 

(B) shall cover the one-year period ending on August 31 of 

the preceding year. 

(4) For purposes of this section, institutions may— 

(A) exclude from the information disclosed in accordance 

with subparagraph (L) of paragraph (1) the completion or 

graduation rates of students who leave school to serve in 

the Armed Forces, on official church missions, or with a 

recognized foreign aid service of the Federal Government; 

or 

(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificateor degree-seeking, full-time, undergraduate students at the 

institution, recalculate the completion or graduation rates 

of such students by excluding from the calculation described in paragraph (3) the time period during which such 

students were not enrolled due to their service in the 

Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government. 

(5) The Secretary shall permit any institution of higher education 

that is a member of an athletic association or athletic conference 

that has voluntarily published completion or graduation rate data 

or has agreed to publish data that, in the opinion of the Secretary, 

is substantially comparable to the information required under this 

subsection, to use such data to satisfy the requirements of this subsection; and 


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36 

(6) Each institution may provide supplemental information to enrolled and prospective students showing the completion or graduation rate for students described in paragraph (4) or for students 

transferring into the institution or information showing the rate at 

which students transfer out of the institution. 

(7)(A)(i) Subject to clause (ii), the information disseminated 

under paragraph (1)(L), or reported under subsection (e), shall 

be disaggregated by gender, by each major racial and ethnic 

subgroup, by recipients of a Federal Pell Grant, by recipients 

of a loan made under part B or D (other than a loan made 

under section 428H or a Federal Direct Unsubsidized Stafford 

Loan) who did not receive a Federal Pell Grant, and by recipients of neither a Federal Pell Grant nor a loan made under 

part B or D (other than a loan made under section 428H or a 

Federal Direct Unsubsidized Stafford Loan), if the number of 

students in such subgroup or with such status is sufficient to 

yield statistically reliable information and reporting will not 

reveal personally identifiable information about an individual 

student. If such number is not sufficient for such purposes, 

then the institution shall note that the institution enrolled too 

few of such students to so disclose or report with confidence 

and confidentiality. 

(ii) The requirements of clause (i) shall not apply to twoyear, degree-granting institutions of higher education until 

academic year 2011-2012. 

(B)(i) In order to assist two-year degree-granting institutions 

of higher education in meeting the requirements of paragraph 

(1)(L) and subsection (e), the Secretary, in consultation with 

the Commissioner for Education Statistics, shall, not later than 

90 days after the date of enactment of the Higher Education 

Opportunity Act, convene a group of representatives from diverse institutions of higher education, experts in the field of 

higher education policy, state higher education officials, students, and other stakeholders in the higher education community, to develop recommendations regarding the accurate calculation and reporting of the information required to be disseminated or reported under paragraph (1)(L) and subsection 

(e) by two-year, degree-granting institutions of higher education. In developing such recommendations, the group of representatives shall consider the mission and role of two-year degree-granting institutions of higher education, and may recommend additional or alternative measures of student success 

for such institutions in light of the mission and role of such institutions. 

(ii) The Secretary shall widely disseminate the recommendations required under this subparagraph to two-year, degreegranting institutions of higher education, the public, and the 

authorizing committees not later than 18 months after the first 

meeting of the group of representatives convened under clause 

(i). 

(iii) The Secretary shall use the recommendations from the 

group of representatives convened under clause (i) to provide 

technical assistance to two-year, degree-granting institutions of 

higher education in meeting the requirements of paragraph 

(1)(L) and subsection (e). 


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37 

(iv) The Secretary may modify the information required to be 

disseminated or reported under paragraph (1)(L) or subsection 

(e) by a two-year, degree-granting institution of higher education— 

(I) based on the recommendations received under this 

subparagraph from the group of representatives convened 

under clause (i); 

(II) to include additional or alternative measures of student success if the goals of the provisions of paragraph 

(1)(L) and subsection (e) can be met through additional 

means or comparable alternatives; and 

(III) during the period beginning on the date of enactment of the Higher Education Opportunity Act, and ending 

on June 30, 2011. 

(b) EXIT COUNSELING FOR BORROWERS.—(1)(A) Each eligible institution shall, øthrough financial aid offices or otherwise¿ through 

the use of an interactive program, during an exit counseling session 

that is in-person or online, or through the use of the online counseling tool described in subsection (n)(1)(A), provide counseling to 

borrowers of loans that are made, insured, or guaranteed under 

part B (other than loans made pursuant to section 428C or loans 

under section 428B made on behalf of a student) or made under 

part D (other than Federal Direct Consolidation Loans or Federal 

Direct PLUS Loans made on behalf of a student) or made under 

part E of this title prior to the completion of the course of study 

for which the borrower enrolled at the institution or at the time of 

departure from such institution. The counseling required by this 

subsection shall include— 

(i) a summary of the outstanding balance of principal and interest due on the loans made to the borrower under part B, D, 

or E; 

(ii) an explanation of the grace period preceding repayment 

and the expected date that the borrower will enter repayment; 

(iii) an explanation that the borrower has the option to pay 

any interest that has accrued while the borrower was in school 

or that may accrue during the grace period preceding repayment or during an authorized period of deferment or forbearance, prior to the capitalization of the interest; 

ø(i)¿ (iv) information on the repayment plans available, including a description of the different features øof each plan¿ of 

at least the standard repayment plan and the income-based repayment plan under section 493C and øsample information 

showing the average¿ information, based on the borrower’s outstanding balance described in clause (i), showing the borrower’s 

anticipated monthly payments, and the difference in interest 

paid and total payments, under each plan; 

ø(ii)¿ (v) debt management strategies that are designed to facilitate the repayment of such indebtedness; 

ø(iii)¿ (vi) an explanation that the borrower has the options 

to prepay each loan, pay each loan on a shorter schedule, and 

change repayment plans; 

ø(iv)¿ (vii) for any loan forgiveness or cancellation provision 

of this title, a general description of the terms and conditions 

under which the borrower may obtain full or partial forgiveness or cancellation of the principal and interest, and a copy 


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38 

of the information provided by the Secretary under section 

485(d); 

ø(v)¿ (viii) for any forbearance provision of this title, a general description of the terms and conditions under which the 

borrower may defer repayment of principal or interest or be 

granted forbearance, and a copy of the information provided by 

the Secretary under section 485(d); 

ø(vi)¿ (ix) the consequences of defaulting on a loan, including 

adverse credit reports, decreased credit score, delinquent debt 

collection procedures under Federal law, reduced ability to rent 

or purchase a home or car, potential difficulty in securing employment, and litigation; 

ø(vii)¿ (x) information on the effects of using a øconsolidation 

loan under section 428C or a¿ Federal Direct Consolidation 

Loan to discharge the borrower’s loans under parts B, D, and 

E, including at a minimum— 

(I) the effects of consolidation on total interest to be 

paid, fees to be paid, and length of repayment; 

(II) the effects of consolidation on a borrower’s underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities; 

(III) the option of the borrower to prepay the loan or to 

change repayment plans; and 

(IV) that borrower benefit programs may vary among 

different lenders; 

ø(viii)¿ (xi) a general description of the types of tax benefits 

that may be available to borrowers; øand¿ 

ø(ix)¿ (xii) a notice to borrowers about the availability of the 

National Student Loan Data System and how the system can 

be used by a borrower to obtain information on the status of 

the borrower’s loans; øand¿ 

(xiii) for each of the borrower’s loans made under part B, D, 

or E for which the borrower is receiving counseling under this 

subsection, the contact information for the loan servicer of the 

loan and a link to such servicer’s Website; and 

(xiv) an explanation that an individual has a right to annually request a disclosure of information collected by a consumer 

reporting agency pursuant to section 612(a) of the Fair Credit 

Reporting Act (15 U.S.C. 1681j(a)). 

(B) In the case of borrower who leaves an institution without the 

prior knowledge of the institution, the institution shall attempt to 

provide the information described in subparagraph (A) to the student online or in writing, except that in the case of an institution 

using the online counseling tool described in subsection (n)(1)(A), 

the Secretary shall attempt to provide such information to the student in the manner described in subsection (n)(3)(C). 

(2)(A) Each eligible institution shall require that the borrower of 

a loan made under part B, D, or E submit to the institution, during 

the exit interview required by this subsection— 

(i) the borrower’s expected permanent address after leaving 

the institution (regardless of the reason for leaving); 

(ii) the name and address of the borrower’s expected employer after leaving the institution; 

(iii) the address of the borrower’s next of kin; and 


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39 

(iv) any corrections in the institution’s records relating the 

borrower’s name, address, social security number, references, 

and driver’s license number. 

(B) The institution shall, within 60 days after the interview, forward any corrected or completed information received from the borrower to the guaranty agency indicated on the borrower’s student 

aid records. 

(C) Nothing in this subsection shall be construed to prohibit an 

institution of higher education from utilizing electronic means, such as the online counseling tool described in subsection (n)(1)(A), 

to provide personalized exit counseling. 

(c) FINANCIAL ASSISTANCE INFORMATION PERSONNEL.—Each eligible institution shall designate an employee or group of employees 

who shall be available on a full-time basis to assist students or potential students in obtaining information as specified in subsection 

(a). The Secretary may, by regulation, waive the requirement that 

an employee or employees be available on a full-time basis for carrying out responsibilities required under this section whenever an 

institution in which the total enrollment, or the portion of the enrollment participating in programs under this title at that institution, is too small to necessitate such employee or employees being 

available on a full-time basis. No such waiver may include permission to exempt any such institution from designating a specific individual or a group of individuals to carry out the provisions of this 

section. 

(d) DEPARTMENTAL PUBLICATION OF DESCRIPTIONS OF ASSISTANCE

PROGRAMS.—(1) The Secretary shall make available to eligible institutions, eligible lenders, and secondary schools descriptions of 

Federal student assistance programs including the rights and responsibilities of student and institutional participants, in order to 

(A) assist students in gaining information through institutional 

sources, and (B) assist institutions in carrying out the provisions 

of this section, so that individual and institutional participants will 

be fully aware of their rights and responsibilities under such programs. In particular, such information shall include information to 

enable students and prospective students to assess the debt burden 

and monthly and total repayment obligations that will be incurred 

as a result of receiving loans of varying amounts under this title. 

Such information shall also include information on the various payment options available for student loans, including income-sensitive and income-based repayment plans for loans made, insured, 

or guaranteed under part B and income-contingent and incomebased repayment plans for loans made under part D. In addition, 

such information shall include information to enable borrowers to 

assess the practical consequences of loan consolidation, including 

differences in deferment eligibility, interest rates, monthly payments, and finance charges, and samples of loan consolidation profiles to illustrate such consequences. The Secretary shall provide 

information concerning the specific terms and conditions under 

which students may obtain partial or total cancellation or defer repayment of loans for service, shall indicate (in terms of the Federal 

minimum wage) the maximum level of compensation and allowances that a student borrower may receive from a tax-exempt organization to qualify for a deferment, and shall explicitly state that 

students may qualify for such partial cancellations or deferments 


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40 

when they serve as a paid employee of a tax-exempt organization. 

The Secretary shall also provide information on loan forbearance, 

including the increase in debt that results from capitalization of interest. Such information shall be provided by eligible institutions 

and eligible lenders at any time that information regarding loan 

availability is provided to any student. 

(2) The Secretary, to the extent the information is available, 

shall compile information describing State and other prepaid tuition programs and savings programs and disseminate such information to States, eligible institutions, students, and parents in departmental publications. 

(3) The Secretary, to the extent practicable, shall update the Department’s Internet site to include direct links to databases that 

contain information on public and private financial assistance programs. The Secretary shall only provide direct links to databases 

that can be accessed without charge and shall make reasonable efforts to verify that the databases included in a direct link are not 

providing fraudulent information. The Secretary shall prominently 

display adjacent to any such direct link a disclaimer indicating that 

a direct link to a database does not constitute an endorsement or 

recommendation of the database, the provider of the database, or 

any services or products of such provider. The Secretary shall provide additional direct links to information resources from which 

students may obtain information about fraudulent and deceptive 

practices in the provision of services related to student financial 

aid. 

(4) The Secretary shall widely publicize the location of the information described in paragraph (1) among the public, eligible institutions, and eligible lenders, and promote the use of such information by prospective students, enrolled students, families of prospective and enrolled students, and borrowers. 

(e) DISCLOSURES REQUIRED WITH RESPECT TO ATHLETICALLY RELATED STUDENT AID.—(1) Each institution of higher education 

which participates in any program under this title and is attended 

by students receiving athletically related student aid shall annually submit a report to the Secretary which contains— 

(A) the number of students at the institution of higher education who received athletically related student aid broken 

down by race and sex in the following sports: basketball, football, baseball, cross country/track, and all other sports combined; 

(B) the number of students at the institution of higher education, broken down by race and sex; 

(C) the completion or graduation rate for students at the institution of higher education who received athletically related 

student aid broken down by race and sex in the following 

sports: basketball, football, baseball, cross country/track and 

all other sports combined; 

(D) the completion or graduation rate for students at the institution of higher education, broken down by race and sex; 

(E) the average completion or graduation rate for the 4 most 

recent completing or graduating classes of students at the institution of higher education who received athletically related 

student aid broken down by race and sex in the following catVerDate Sep 11 2014 03:07 Jul 15, 2016 Jkt 059006 PO 00000 Frm 00040 Fmt 6659 Sfmt 6601 E:\HR\OC\HR675.XXX HR675

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egories: basketball, football, baseball, cross country/track, and 

all other sports combined; and 

(F) the average completion or graduation rate for the 4 most 

recent completing or graduating classes of students at the institution of higher education broken down by race and sex. 

(2) When an institution described in paragraph (1) of this subsection offers a potential student athlete athletically related student aid, such institution shall provide to the student and the student’s parents, guidance counselor, and coach the information contained in the report submitted by such institution pursuant to 

paragraph (1). If the institution is a member of a national collegiate athletic association that compiles graduation rate data on behalf of the association’s member institutions that the Secretary determines is substantially comparable to the information described 

in paragraph (1), the distribution of the compilation of such data 

to all secondary schools in the United States shall fulfill the responsibility of the institution to provide information to a prospective student athlete’s guidance counselor and coach. 

(3) For purposes of this subsection, institutions may— 

(A) exclude from the reporting requirements under paragraphs (1) and (2) the completion or graduation rates of 

students and student athletes who leave school to serve in 

the Armed Forces, on official church missions, or with a 

recognized foreign aid service of the Federal Government; 

or 

(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificateor degree-seeking, full-time, undergraduate students at the 

institution, calculate the completion or graduation rates of 

such students by excluding from the calculations described 

in paragraph (1) the time period during which such students were not enrolled due to their service in the Armed 

Forces, on official church missions, or with a recognized 

foreign aid service of the Federal Government. 

(4) Each institution of higher education described in paragraph 

(1) may provide supplemental information to students and the Secretary showing the completion or graduation rate when such completion or graduation rate includes students transferring into and 

out of such institution. 

(5) The Secretary, using the reports submitted under this subsection, shall compile and publish a report containing the information required under paragraph (1) broken down by— 

(A) individual institutions of higher education; and 

(B) athletic conferences recognized by the National Collegiate 

Athletic Association and the National Association of Intercollegiate Athletics. 

(6) The Secretary shall waive the requirements of this subsection 

for any institution of higher education that is a member of an athletic association or athletic conference that has voluntarily published completion or graduation rate data or has agreed to publish 

data that, in the opinion of the Secretary, is substantially comparable to the information required under this subsection. 

(7) The Secretary, in conjunction with the National Junior College Athletic Association, shall develop and obtain data on completion or graduation rates from two-year colleges that award athletVerDate Sep 11 2014 03:07 Jul 15, 2016 Jkt 059006 PO 00000 Frm 00041 Fmt 6659 Sfmt 6601 E:\HR\OC\HR675.XXX HR675

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ically related student aid. Such data shall, to the extent practicable, be consistent with the reporting requirements set forth in 

this section. 

(8) For purposes of this subsection, the term ‘‘athletically related 

student aid’’ means any scholarship, grant, or other form of financial assistance the terms of which require the recipient to participate in a program of intercollegiate athletics at an institution of 

higher education in order to be eligible to receive such assistance. 

(9) The reports required by this subsection shall be due each July 

1 and shall cover the 1-year period ending August 31 of the preceding year. 

(f) DISCLOSURE OF CAMPUS SECURITY POLICY AND CAMPUS CRIME

STATISTICS.—(1) Each eligible institution participating in any program under this title, other than a foreign institution of higher 

education, shall on August 1, 1991, begin to collect the following information with respect to campus crime statistics and campus security policies of that institution, and beginning September 1, 1992, 

and each year thereafter, prepare, publish, and distribute, through 

appropriate publications or mailings, to all current students and 

employees, and to any applicant for enrollment or employment 

upon request, an annual security report containing at least the following information with respect to the campus security policies and 

campus crime statistics of that institution: 

(A) A statement of current campus policies regarding procedures and facilities for students and others to report criminal 

actions or other emergencies occurring on campus and policies 

concerning the institution’s response to such reports. 

(B) A statement of current policies concerning security and 

access to campus facilities, including campus residences, and 

security considerations used in the maintenance of campus facilities. 

(C) A statement of current policies concerning campus law 

enforcement, including— 

(i) the law enforcement authority of campus security personnel; 

(ii) the working relationship of campus security personnel with State and local law enforcement agencies, including whether the institution has agreements with such 

agencies, such as written memoranda of understanding, for 

the investigation of alleged criminal offenses; and 

(iii) policies which encourage accurate and prompt reporting of all crimes to the campus police and the appropriate law enforcement agencies, when the victim of such 

crime elects or is unable to make such a report. 

(D) A description of the type and frequency of programs designed to inform students and employees about campus security procedures and practices and to encourage students and 

employees to be responsible for their own security and the security of others. 

(E) A description of programs designed to inform students 

and employees about the prevention of crimes. 

(F) Statistics concerning the occurrence on campus, in or on 

noncampus buildings or property, and on public property during the most recent calendar year, and during the 2 preceding 

calendar years for which data are available— 


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(i) of the following criminal offenses reported to campus 

security authorities or local police agencies: 

(I) murder; 

(II) sex offenses, forcible or nonforcible; 

(III) robbery; 

(IV) aggravated assault; 

(V) burglary; 

(VI) motor vehicle theft; 

(VII) manslaughter; 

(VIII) arson; 

(IX) arrests or persons referred for campus disciplinary action for liquor law violations, drug-related violations, and weapons possession; and 

(ii) of the crimes described in subclauses (I) through 

(VIII) of clause (i), of larceny-theft, simple assault, intimidation, and destruction, damage, or vandalism of property, 

and of other crimes involving bodily injury to any person, 

in which the victim is intentionally selected because of the 

actual or perceived race, gender, religion, national origin, 

sexual orientation, gender identity,, ethnicity, or disability 

of the victim that are reported to campus security authorities or local police agencies, which data shall be collected 

and reported according to category of prejudice; and 

(iii) of domestic violence, dating violence, and stalking 

incidents that were reported to campus security authorities or local police agencies. 

(G) A statement of policy concerning the monitoring and recording through local police agencies of criminal activity at offcampus student organizations which are recognized by the institution and that are engaged in by students attending the institution, including those student organizations with off-campus housing facilities. 

(H) A statement of policy regarding the possession, use, and 

sale of alcoholic beverages and enforcement of State underage 

drinking laws and a statement of policy regarding the possession, use, and sale of illegal drugs and enforcement of Federal 

and State drug laws and a description of any drug or alcohol 

abuse education programs as required under section 120 of this 

Act. 

(I) A statement advising the campus community where law 

enforcement agency information provided by a State under section 170101(j) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(j)), concerning registered 

sex offenders may be obtained, such as the law enforcement office of the institution, a local law enforcement agency with jurisdiction for the campus, or a computer network address. 

(J) A statement of current campus policies regarding immediate emergency response and evacuation procedures, 

including the use of electronic and cellular communication 

(if appropriate), which policies shall include procedures 

to— 

(i) immediately notify the campus community upon 

the confirmation of a significant emergency or dangerous situation involving an immediate threat to the 

health or safety of students or staff occurring on the 


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44 

campus, as defined in paragraph (6), unless issuing a 

notification will compromise efforts to contain the 

emergency; 

(ii) publicize emergency response and evacuation 

procedures on an annual basis in a manner designed 

to reach students and staff; and 

(iii) test emergency response and evacuation procedures on an annual basis. 

(2) Nothing in this subsection shall be construed to authorize the 

Secretary to require particular policies, procedures, or practices by 

institutions of higher education with respect to campus crimes or 

campus security. 

(3) Each institution participating in any program under this title, 

other than a foreign institution of higher education, shall make 

timely reports to the campus community on crimes considered to be 

a threat to other students and employees described in paragraph 

(1)(F) that are reported to campus security or local law police agencies. Such reports shall be provided to students and employees in 

a manner that is timely, that withholds the names of victims as 

confidential, and that will aid in the prevention of similar occurrences. 

(4)(A) Each institution participating in any program under this 

title, other than a foreign institution of higher education, that 

maintains a police or security department of any kind shall make, 

keep, and maintain a daily log, written in a form that can be easily 

understood, recording all crimes reported to such police or security 

department, including— 

(i) the nature, date, time, and general location of each crime; 

and 

(ii) the disposition of the complaint, if known. 

(B)(i) All entries that are required pursuant to this paragraph 

shall, except where disclosure of such information is prohibited by 

law or such disclosure would jeopardize the confidentiality of the 

victim, be open to public inspection within two business days of the 

initial report being made to the department or a campus security 

authority. 

(ii) If new information about an entry into a log becomes available to a police or security department, then the new information 

shall be recorded in the log not later than two business days after 

the information becomes available to the police or security department. 

(iii) If there is clear and convincing evidence that the release of 

such information would jeopardize an ongoing criminal investigation or the safety of an individual, cause a suspect to flee or evade 

detection, or result in the destruction of evidence, such information 

may be withheld until that damage is no longer likely to occur from 

the release of such information. 

(5) On an annual basis, each institution participating in any program under this title, other than a foreign institution of higher 

education, shall submit to the Secretary a copy of the statistics required to be made available under paragraph (1)(F). The Secretary 

shall— 

(A) review such statistics and report to the authorizing committees on campus crime statistics by September 1, 2000; 


SSpencer on DSK4SPTVN1PROD with REPORTS
45 

(B) make copies of the statistics submitted to the Secretary 

available to the public; and 

(C) in coordination with representatives of institutions of 

higher education, identify exemplary campus security policies, 

procedures, and practices and disseminate information concerning those policies, procedures, and practices that have 

proven effective in the reduction of campus crime. 

(6)(A) In this subsection: 

(i) The terms ‘‘dating violence’’, ‘‘domestic violence’’, and 

‘‘stalking’’ have the meaning given such terms in section 

40002(a) of the Violence Against Women Act of 1994 (42 U.S.C. 

13925(a)). 

(ii) The term ‘‘campus’’ means— 

(I) any building or property owned or controlled by an 

institution of higher education within the same reasonably 

contiguous geographic area of the institution and used by 

the institution in direct support of, or in a manner related 

to, the institution’s educational purposes, including residence halls; and 

(II) property within the same reasonably contiguous geographic area of the institution that is owned by the institution but controlled by another person, is used by students, 

and supports institutional purposes (such as a food or 

other retail vendor). 

(iii) The term ‘‘noncampus building or property’’ means— 

(I) any building or property owned or controlled by a student organization recognized by the institution; and 

(II) any building or property (other than a branch campus) owned or controlled by an institution of higher education that is used in direct support of, or in relation to, 

the institution’s educational purposes, is used by students, 

and is not within the same reasonably contiguous geographic area of the institution. 

(iv) The term ‘‘public property’’ means all public property 

that is within the same reasonably contiguous geographic area 

of the institution, such as a sidewalk, a street, other thoroughfare, or parking facility, and is adjacent to a facility owned or 

controlled by the institution if the facility is used by the institution in direct support of, or in a manner related to the institution’s educational purposes. 

(v) The term ‘‘sexual assault’’ means an offense classified as 

a forcible or nonforcible sex offense under the uniform crime 

reporting system of the Federal Bureau of Investigation. 

(B) In cases where branch campuses of an institution of higher 

education, schools within an institution of higher education, or administrative divisions within an institution are not within a reasonably contiguous geographic area, such entities shall be considered separate campuses for purposes of the reporting requirements 

of this section. 

(7) The statistics described in clauses (i) and (ii) of paragraph 

(1)(F) shall be compiled in accordance with the definitions used in 

the uniform crime reporting system of the Department of Justice, 

Federal Bureau of Investigation, and the modifications in such definitions as implemented pursuant to the Hate Crime Statistics Act. 

For the offenses of domestic violence, dating violence, and stalking, 


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46 

such statistics shall be compiled in accordance with the definitions 

used in section 40002(a) of the Violence Against Women Act of 

1994 (42 U.S.C. 13925(a)). Such statistics shall not identify victims 

of crimes or persons accused of crimes. 

(8)(A) Each institution of higher education participating in any 

program under this title and title IV of the Economic Opportunity 

Act of 1964, other than a foreign institution of higher education, 

shall develop and distribute as part of the report described in paragraph (1) a statement of policy regarding— 

(i) such institution’s programs to prevent domestic violence, 

dating violence, sexual assault, and stalking; and 

(ii) the procedures that such institution will follow once an 

incident of domestic violence, dating violence, sexual assault, 

or stalking has been reported, including a statement of the 

standard of evidence that will be used during any institutional 

conduct proceeding arising from such a report. 

(B) The policy described in subparagraph (A) shall address the 

following areas: 

(i) Education programs to promote the awareness of rape, acquaintance rape, domestic violence, dating violence, sexual assault, and stalking, which shall include— 

(I) primary prevention and awareness programs for all 

incoming students and new employees, which shall include— 

(aa) a statement that the institution of higher education prohibits the offenses of domestic violence, dating violence, sexual assault, and stalking; 

(bb) the definition of domestic violence, dating violence, sexual assault, and stalking in the applicable jurisdiction; 

(cc) the definition of consent, in reference to sexual 

activity, in the applicable jurisdiction; 

(dd) safe and positive options for bystander intervention that may be carried out by an individual to 

prevent harm or intervene when there is a risk of domestic violence, dating violence, sexual assault, or 

stalking against a person other than such individual; 

(ee) information on risk reduction to recognize warning signs of abusive behavior and how to avoid potential attacks; and 

(ff) the information described in clauses (ii) through 

(vii); and 

(II) ongoing prevention and awareness campaigns for 

students and faculty, including information described in 

items (aa) through (ff) of subclause (I). 

(ii) Possible sanctions or protective measures that such institution may impose following a final determination of an institutional disciplinary procedure regarding rape, acquaintance 

rape, domestic violence, dating violence, sexual assault, or 

stalking. 

(iii) Procedures victims should follow if a sex offense, domestic violence, dating violence, sexual assault, or stalking has occurred, including information in writing about— 

(I) the importance of preserving evidence as may be necessary to the proof of criminal domestic violence, dating viVerDate Sep 11 2014 03:07 Jul 15, 2016 Jkt 059006 PO 00000 Frm 00046 Fmt 6659 Sfmt 6601 E:\HR\OC\HR675.XXX HR675

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olence, sexual assault, or stalking, or in obtaining a protection order; 

(II) to whom the alleged offense should be reported; 

(III) options regarding law enforcement and campus authorities, including notification of the victim’s option to— 

(aa) notify proper law enforcement authorities, including on-campus and local police; 

(bb) be assisted by campus authorities in notifying 

law enforcement authorities if the victim so chooses; 

and 

(cc) decline to notify such authorities; and 

(IV) where applicable, the rights of victims and the institution’s responsibilities regarding orders of protection, no 

contact orders, restraining orders, or similar lawful orders 

issued by a criminal, civil, or tribal court. 

(iv) Procedures for institutional disciplinary action in cases 

of alleged domestic violence, dating violence, sexual assault, or 

stalking, which shall include a clear statement that— 

(I) such proceedings shall— 

(aa) provide a prompt, fair, and impartial investigation and resolution; and 

(bb) be conducted by officials who receive annual 

training on the issues related to domestic violence, 

dating violence, sexual assault, and stalking and how 

to conduct an investigation and hearing process that 

protects the safety of victims and promotes accountability; 

(II) the accuser and the accused are entitled to the same 

opportunities to have others present during an institutional disciplinary proceeding, including the opportunity to 

be accompanied to any related meeting or proceeding by an 

advisor of their choice; and 

(III) both the accuser and the accused shall be simultaneously informed, in writing, of— 

(aa) the outcome of any institutional disciplinary 

proceeding that arises from an allegation of domestic 

violence, dating violence, sexual assault, or stalking; 

(bb) the institution’s procedures for the accused and 

the victim to appeal the results of the institutional disciplinary proceeding; 

(cc) of any change to the results that occurs prior to 

the time that such results become final; and 

(dd) when such results become final. 

(v) Information about how the institution will protect the 

confidentiality of victims, including how publicly-available recordkeeping will be accomplished without the inclusion of identifying information about the victim, to the extent permissible 

by law. 

(vi) Written notification of students and employees about existing counseling, health, mental health, victim advocacy, legal 

assistance, and other services available for victims both oncampus and in the community. 

(vii) Written notification of victims about options for, and 

available assistance in, changing academic, living, transportation, and working situations, if so requested by the victim 


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48 

and if such accommodations are reasonably available, regardless of whether the victim chooses to report the crime to campus police or local law enforcement. 

(C) A student or employee who reports to an institution of higher 

education that the student or employee has been a victim of domestic violence, dating violence, sexual assault, or stalking, whether 

the offense occurred on or off campus, shall be provided with a 

written explanation of the student or employee’s rights and options, 

as described in clauses (ii) through (vii) of subparagraph (B). 

(9) The Secretary, in consultation with the Attorney General of 

the United States, shall provide technical assistance in complying 

with the provisions of this section to an institution of higher education who requests such assistance. 

(10) Nothing in this section shall be construed to require the reporting or disclosure of privileged information. 

(11) The Secretary shall report to the appropriate committees of 

Congress each institution of higher education that the Secretary 

determines is not in compliance with the reporting requirements of 

this subsection. 

(12) For purposes of reporting the statistics with respect to 

crimes described in paragraph (1)(F), an institution of higher education shall distinguish, by means of separate categories, any 

criminal offenses that occur— 

(A) on campus; 

(B) in or on a noncampus building or property; 

(C) on public property; and 

(D) in dormitories or other residential facilities for students 

on campus. 

(13) Upon a determination pursuant to section 487(c)(3)(B) that 

an institution of higher education has substantially misrepresented 

the number, location, or nature of the crimes required to be reported under this subsection, the Secretary shall impose a civil 

penalty upon the institution in the same amount and pursuant to 

the same procedures as a civil penalty is imposed under section 

487(c)(3)(B). 

(14)(A) Nothing in this subsection may be construed to— 

(i) create a cause of action against any institution of higher 

education or any employee of such an institution for any civil 

liability; or 

(ii) establish any standard of care. 

(B) Notwithstanding any other provision of law, evidence regarding compliance or noncompliance with this subsection shall not be 

admissible as evidence in any proceeding of any court, agency, 

board, or other entity, except with respect to an action to enforce 

this subsection. 

(15) The Secretary shall annually report to the authorizing 

committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on 

the Secretary’s monitoring of such compliance. 

(16)(A) The Secretary shall seek the advice and counsel of the Attorney General of the United States concerning the development, 

and dissemination to institutions of higher education, of best practices information about campus safety and emergencies. 

(B) The Secretary shall seek the advice and counsel of the Attorney General of the United States and the Secretary of Health and 


SSpencer on DSK4SPTVN1PROD with REPORTS
49 

Human Services concerning the development, and dissemination to 

institutions of higher education, of best practices information about 

preventing and responding to incidents of domestic violence, dating 

violence, sexual assault, and stalking, including elements of institutional policies that have proven successful based on evidencebased outcome measurements. 

(17) No officer, employee, or agent of an institution participating 

in any program under this title shall retaliate, intimidate, threaten, coerce, or otherwise discriminate against any individual for exercising their rights or responsibilities under any provision of this 

subsection. 

(18) This subsection may be cited as the ‘‘Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act’’. 

(g) DATA REQUIRED.— 

(1) IN GENERAL.—Each coeducational institution of higher 

education that participates in any program under this title, 

and has an intercollegiate athletic program, shall annually, for 

the immediately preceding academic year, prepare a report 

that contains the following information regarding intercollegiate athletics: 

(A) The number of male and female full-time undergraduates that attended the institution. 

(B) A listing of the varsity teams that competed in intercollegiate athletic competition and for each such team the 

following data: 

(i) The total number of participants, by team, as of 

the day of the first scheduled contest for the team. 

(ii) Total operating expenses attributable to such 

teams, except that an institution may also report such 

expenses on a per capita basis for each team and expenditures attributable to closely related teams such 

as track and field or swimming and diving, may be reported together, although such combinations shall be 

reported separately for men’s and women’s teams. 

(iii) Whether the head coach is male or female and 

whether the head coach is assigned to that team on a 

full-time or part-time basis. Graduate assistants and 

volunteers who serve as head coaches shall be considered to be head coaches for the purposes of this clause. 

(iv) The number of assistant coaches who are male 

and the number of assistant coaches who are female 

for each team and whether a particular coach is assigned to that team on a full-time or part-time basis. 

Graduate assistants and volunteers who serve as assistant coaches shall be considered to be assistant 

coaches for the purposes of this clause. 

(C) The total amount of money spent on athletically related student aid, including the value of waivers of educational expenses, separately for men’s and women’s teams 

overall. 

(D) The ratio of athletically related student aid awarded 

male athletes to athletically related student aid awarded 

female athletes. 

(E) The total amount of expenditures on recruiting, separately for men’s and women’s teams overall. 


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(F) The total annual revenues generated across all men’s 

teams and across all women’s teams, except that an institution may also report such revenues by individual team. 

(G) The average annual institutional salary of the head 

coaches of men’s teams, across all offered sports, and the 

average annual institutional salary of the head coaches of 

women’s teams, across all offered sports. 

(H) The average annual institutional salary of the assistant coaches of men’s teams, across all offered sports, and 

the average annual institutional salary of the assistant 

coaches of women’s teams, across all offered sports. 

(I)(i) The total revenues, and the revenues from football, 

men’s basketball, women’s basketball, all other men’s 

sports combined and all other women’s sports combined, 

derived by the institution from the institution’s intercollegiate athletics activities. 

(ii) For the purpose of clause (i), revenues from intercollegiate athletics activities allocable to a sport shall include (without limitation) gate receipts, broadcast revenues, appearance guarantees and options, concessions, and 

advertising, but revenues such as student activities fees or 

alumni contributions not so allocable shall be included in 

the calculation of total revenues only. 

(J)(i) The total expenses, and the expenses attributable 

to football, men’s basketball, women’s basketball, all other 

men’s sports combined, and all other women’s sports combined, made by the institution for the institution’s intercollegiate athletics activities. 

(ii) For the purpose of clause (i), expenses for intercollegiate athletics activities allocable to a sport shall include 

(without limitation) grants-in-aid, salaries, travel, equipment, and supplies, but expenses such as general and administrative overhead not so allocable shall be included in 

the calculation of total expenses only. 

(2) SPECIAL RULE.—For the purposes of paragraph (1)(G), if 

a coach has responsibilities for more than one team and the institution does not allocate such coach’s salary by team, the institution should divide the salary by the number of teams for 

which the coach has responsibility and allocate the salary 

among the teams on a basis consistent with the coach’s responsibilities for the different teams. 

(3) DISCLOSURE OF INFORMATION TO STUDENTS AND PUBLIC.— 

An institution of higher education described in paragraph (1) 

shall make available to students and potential students, upon 

request, and to the public, the information contained in the report described in paragraph (1), except that all students shall 

be informed of their right to request such information. 

(4) SUBMISSION; REPORT; INFORMATION AVAILABILITY.—(A) On 

an annual basis, each institution of higher education described 

in paragraph (1) shall provide to the Secretary, within 15 days 

of the date that the institution makes available the report 

under paragraph (1), the information contained in the report. 

(B) The Secretary shall ensure that the reports described in 

subparagraph (A) are made available to the public within a 

reasonable period of time. 


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(C) Not later than 180 days after the date of enactment of 

the Higher Education Amendments of 1998, the Secretary shall 

notify all secondary schools in all States regarding the availability of the information made available under paragraph (1), 

and how such information may be accessed. 

(5) DEFINITION.—For the purposes of this subsection, the 

term ‘‘operating expenses’’ means expenditures on lodging and 

meals, transportation, officials, uniforms and equipment. 

(h) TRANSFER OF CREDIT POLICIES.— 

(1) DISCLOSURE.—Each institution of higher education participating in any program under this title shall publicly disclose, in a readable and comprehensible manner, the transfer 

of credit policies established by the institution which shall include a statement of the institution’s current transfer of credit 

policies that includes, at a minimum— 

(A) any established criteria the institution uses regarding the transfer of credit earned at another institution of 

higher education; and 

(B) a list of institutions of higher education with which 

the institution has established an articulation agreement. 

(2) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to— 

(A) authorize the Secretary or the National Advisory 

Committee on Institutional Quality and Integrity to require particular policies, procedures, or practices by institutions of higher education with respect to transfer of credit; 

(B) authorize an officer or employee of the Department 

to exercise any direction, supervision, or control over the 

curriculum, program of instruction, administration, or personnel of any institution of higher education, or over any 

accrediting agency or association; 

(C) limit the application of the General Education Provisions Act; or 

(D) create any legally enforceable right on the part of a 

student to require an institution of higher education to accept a transfer of credit from another institution. 

(i) DISCLOSURE OF FIRE SAFETY STANDARDS AND MEASURES.— 

(1) ANNUAL FIRE SAFETY REPORTS ON STUDENT HOUSING REQUIRED.—Each eligible institution participating in any program under this title that maintains on-campus student housing facilities shall, on an annual basis, publish a fire safety report, which shall contain information with respect to the campus fire safety practices and standards of that institution, including— 

(A) statistics concerning the following in each on-campus 

student housing facility during the most recent calendar 

years for which data are available: 

(i) the number of fires and the cause of each fire; 

(ii) the number of injuries related to a fire that result in treatment at a medical facility; 

(iii) the number of deaths related to a fire; and 

(iv) the value of property damage caused by a fire; 


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52 

(B) a description of each on-campus student housing facility fire safety system, including the fire sprinkler system; 

(C) the number of regular mandatory supervised fire 

drills; 

(D) policies or rules on portable electrical appliances, 

smoking, and open flames (such as candles), procedures for 

evacuation, and policies regarding fire safety education 

and training programs provided to students, faculty, and 

staff; and 

(E) plans for future improvements in fire safety, if determined necessary by such institution. 

(2) REPORT TO THE SECRETARY.—Each institution described 

in paragraph (1) shall, on an annual basis, submit to the Secretary a copy of the statistics required to be made available 

under paragraph (1)(A). 

(3) CURRENT INFORMATION TO CAMPUS COMMUNITY.—Each institution described in paragraph (1) shall— 

(A) make, keep, and maintain a log, recording all fires 

in on-campus student housing facilities, including the nature, date, time, and general location of each fire; and 

(B) make annual reports to the campus community on 

such fires. 

(4) RESPONSIBILITIES OF THE SECRETARY.—The Secretary 

shall— 

(A) make the statistics submitted under paragraph 

(1)(A) to the Secretary available to the public; and 

(B) in coordination with nationally recognized fire organizations and representatives of institutions of higher education, representatives of associations of institutions of 

higher education, and other organizations that represent 

and house a significant number of students— 

(i) identify exemplary fire safety policies, procedures, 

programs, and practices, including the installation, to 

the technical standards of the National Fire Protection 

Association, of fire detection, prevention, and protection technologies in student housing, dormitories, and 

other buildings; 

(ii) disseminate the exemplary policies, procedures, 

programs and practices described in clause (i) to the 

Administrator of the United States Fire Administration; 

(iii) make available to the public information concerning those policies, procedures, programs, and practices that have proven effective in the reduction of 

fires; and 

(iv) develop a protocol for institutions to review the 

status of their fire safety systems. 

(5) RULES OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to— 

(A) authorize the Secretary to require particular policies, 

procedures, programs, or practices by institutions of higher 

education with respect to fire safety, other than with respect to the collection, reporting, and dissemination of information required by this subsection; 


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53 

(B) affect section 444 of the General Education Provisions Act (commonly known as the ‘‘Family Educational 

Rights and Privacy Act of 1974’’) or the regulations issued 

under section 264 of the Health Insurance Portability and 

Accountability Act of 1996 (42 U.S.C. 1320d–2 note); 

(C) create a cause of action against any institution of 

higher education or any employee of such an institution for 

any civil liability; or 

(D) establish any standard of care. 

(6) COMPLIANCE REPORT.—The Secretary shall annually report to the authorizing committees regarding compliance with 

this subsection by institutions of higher education, including 

an up-to-date report on the Secretary’s monitoring of such compliance. 

(7) EVIDENCE.—Notwithstanding any other provision of law, 

evidence regarding compliance or noncompliance with this subsection shall not be admissible as evidence in any proceeding 

of any court, agency, board, or other entity, except with respect 

to an action to enforce this subsection. 

(j) MISSING PERSON PROCEDURES.— 

(1) OPTION AND PROCEDURES.—Each institution of higher 

education that provides on-campus housing and participates in 

any program under this title shall— 

(A) establish a missing student notification policy for 

students who reside in on-campus housing that— 

(i) informs each such student that such student has 

the option to identify an individual to be contacted by 

the institution not later than 24 hours after the time 

that the student is determined missing in accordance 

with official notification procedures established by the 

institution under subparagraph (B); 

(ii) provides each such student a means to register 

confidential contact information in the event that the 

student is determined to be missing for a period of 

more than 24 hours; 

(iii) advises each such student who is under 18 years 

of age, and not an emancipated individual, that the institution is required to notify a custodial parent or 

guardian not later 24 hours after the time that the 

student is determined to be missing in accordance 

with such procedures; 

(iv) informs each such residing student that the institution will notify the appropriate law enforcement 

agency not later than 24 hours after the time that the 

student is determined missing in accordance with such 

procedures; and 

(v) requires, if the campus security or law enforcement personnel has been notified and makes a determination that a student who is the subject of a missing person report has been missing for more than 24 

hours and has not returned to the campus, the institution to initiate the emergency contact procedures in 

accordance with the student’s designation; and 

(B) establish official notification procedures for a missing 

student who resides in on-campus housing that— 


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54 

(i) includes procedures for official notification of appropriate individuals at the institution that such student has been missing for more than 24 hours; 

(ii) requires any official missing person report relating to such student be referred immediately to the institution’s police or campus security department; and 

(iii) if, on investigation of the official report, such department determines that the missing student has 

been missing for more than 24 hours, requires— 

(I) such department to contact the individual 

identified by such student under subparagraph 

(A)(i); 

(II) if such student is under 18 years of age, and 

not an emancipated individual, the institution to 

immediately contact the custodial parent or legal 

guardian of such student; and 

(III) if subclauses (I) or (II) do not apply to a 

student determined to be a missing person, inform 

the appropriate law enforcement agency. 

(2) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed— 

(A) to provide a private right of action to any person to 

enforce any provision of this subsection; or 

(B) to create a cause of action against any institution of 

higher education or any employee of the institution for any 

civil liability. 

(k) NOTICE TO STUDENTS CONCERNING PENALTIES FOR DRUG VIO- LATIONS.— 

(1) NOTICE UPON ENROLLMENT.—Each institution of higher 

education shall provide to each student, upon enrollment, a 

separate, clear, and conspicuous written notice that advises the 

student of the penalties under section 484(r). 

(2) NOTICE AFTER LOSS OF ELIGIBILITY.—An institution of 

higher education shall provide in a timely manner to each student who has lost eligibility for any grant, loan, or work-study 

assistance under this title as a result of the penalties listed 

under section 484(r)(1) a separate, clear, and conspicuous written notice that notifies the student of the loss of eligibility and 

advises the student of the ways in which the student can regain eligibility under section 484(r)(2). 

ø(l) ENTRANCE COUNSELING FOR BORROWERS.— 

ø(1) DISCLOSURE REQUIRED PRIOR TO DISBURSEMENT.— 

ø(A) IN GENERAL.—Each eligible institution shall, at or 

prior to the time of a disbursement to a first-time borrower 

of a loan made, insured, or guaranteed under part B (other 

than a loan made pursuant to section 428C or a loan made 

on behalf of a student pursuant to section 428B) or made 

under part D (other than a Federal Direct Consolidation 

Loan or a Federal Direct PLUS loan made on behalf of a 

student), ensure that the borrower receives comprehensive 

information on the terms and conditions of the loan and of 

the responsibilities the borrower has with respect to such 

loan in accordance with paragraph (2). Such information— 

ø(i) shall be provided in a simple and understandable manner; and 


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55 

ø(ii) may be provided— 

ø(I) during an entrance counseling session conduction in person; 

ø(II) on a separate written form provided to the 

borrower that the borrower signs and returns to 

the institution; or 

ø(III) online, with the borrower acknowledging 

receipt of the information. 

ø(B) USE OF INTERACTIVE PROGRAMS.—The Secretary 

shall encourage institutions to carry out the requirements 

of subparagraph (A) through the use of interactive programs that test the borrower’s understanding of the terms 

and conditions of the borrower’s loans under part B or D, 

using simple and understandable language and clear formatting. 

ø(2) INFORMATION TO BE PROVIDED.—The information to be 

provided to the borrower under paragraph (1)(A) shall include 

the following: 

ø(A) To the extent practicable, the effect of accepting the 

loan to be disbursed on the eligibility of the borrower for 

other forms of student financial assistance. 

ø(B) An explanation of the use of the master promissory 

note. 

ø(C) Information on how interest accrues and is capitalized during periods when the interest is not paid by either 

the borrower or the Secretary. 

ø(D) In the case of a loan made under section 428B or 

428H, a Federal Direct PLUS Loan, or a Federal Direct 

Unsubsidized Stafford Loan, the option of the borrower to 

pay the interest while the borrower is in school. 

ø(E) The definition of half-time enrollment at the institution, during regular terms and summer school, if applicable, and the consequences of not maintaining half-time 

enrollment. 

ø(F) An explanation of the importance of contacting the 

appropriate offices at the institution of higher education if 

the borrower withdraws prior to completing the borrower’s 

program of study so that the institution can provide exit 

counseling, including information regarding the borrower’s 

repayment options and loan consolidation. 

ø(G) Sample monthly repayment amounts based on— 

ø(i) a range of levels of indebtedness of— 

ø(I) borrowers of loans under section 428 or 

428H; and 

ø(II) as appropriate, graduate borrowers of 

loans under section 428, 428B, or 428H; or 

ø(ii) the average cumulative indebtedness of other 

borrowers in the same program as the borrower at the 

same institution. 

ø(H) The obligation of the borrower to repay the full 

amount of the loan, regardless of whether the borrower 

completes or does not complete the program in which the 

borrower is enrolled within the regular time for program 

completion. 


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56 

ø(I) The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection 

procedures under Federal law, and litigation. 

ø(J) Information on the National Student Loan Data 

System and how the borrower can access the borrower’s 

records. 

ø(K) The name of and contact information for the individual the borrower may contact if the borrower has any 

questions about the borrower’s rights and responsibilities 

or the terms and conditions of the loan.¿ 

(l) ANNUAL FINANCIAL AID COUNSELING.— (1) ANNUAL DISCLOSURE REQUIRED.— 

(A) IN GENERAL.—Each eligible institution shall ensure 

that each individual who receives a Federal Pell Grant or 

a loan made under part D (other than a Federal Direct 

Consolidation Loan) receives comprehensive information on 

the terms and conditions of such Federal Pell Grant or loan 

and the responsibilities the individual has with respect to 

such Federal Pell Grant or loan. Such information shall be 

provided, for each award year for which the individual receives such Federal Pell Grant or loan, in a simple and understandable manner— 

(i) during a counseling session conducted in person; 

(ii) online, with the individual acknowledging receipt 

of the information; or 

(iii) through the use of the online counseling tool described in subsection (n)(1)(B). 

(B) USE OF INTERACTIVE PROGRAMS.—In the case of institutions not using the online counseling tool described in 

subsection (n)(1)(B), the Secretary shall require such institutions to carry out the requirements of subparagraph (A) 

through the use of interactive programs, during an annual 

counseling session that is in-person or online, that test the 

individual’s understanding of the terms and conditions of 

the Federal Pell Grant or loan awarded to the individual, 

using simple and understandable language and clear formatting. 

(2) ALL INDIVIDUALS.—The information to be provided under 

paragraph (1)(A) to each individual receiving counseling under 

this subsection shall include the following: 

(A) An explanation of how the individual may budget for 

typical educational expenses and a sample budget based on 

the cost of attendance for the institution. 

(B) An explanation that an individual has a right to annually request a disclosure of information collected by a 

consumer reporting agency pursuant to section 612(a) of the 

Fair Credit Reporting Act (15 U.S.C. 1681j(a)). 

(C) Based on the most recent data available from the 

American Community Survey available from the Department of Commerce, the estimated average income and percentage of employment in the State of domicile of the individual for individuals with— 

(i) a high school diploma or equivalent; 

(ii) some post-secondary education without completion of a degree or certificate; and 


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57 

(iii) a bachelor’s degree. 

(D) An introduction to the financial management resources provided by the Financial Literacy and Education 

Commission. 

(3) STUDENTS RECEIVING FEDERAL PELL GRANTS.—The information to be provided under paragraph (1)(A) to each student 

receiving a Federal Pell Grant shall include the following: 

(A) An explanation of the terms and conditions of the 

Federal Pell Grant. 

(B) An explanation of approved educational expenses for 

which the student may use the Federal Pell Grant. 

(C) An explanation of why the student may have to repay 

the Federal Pell Grant. 

(D) An explanation of the maximum number of semesters 

or equivalent for which the student may be eligible to receive a Federal Pell Grant, and a statement of the amount 

of time remaining for which the student may be eligible to 

receive a Federal Pell Grant. 

(E) An explanation that if the student transfers to another institution not all of the student’s courses may be acceptable in transfer toward meeting specific degree or program requirements at such institution, but the amount of 

time remaining for which a student may be eligible to receive a Federal Pell Grant, as provided under subparagraph (D), will not change. 

(F) An explanation of how the student may seek additional financial assistance from the institution’s financial 

aid office due to a change in the student’s financial circumstances, and the contact information for such office. 

(4) BORROWERS RECEIVING LOANS MADE UNDER PART D

(OTHER THAN PARENT PLUS LOANS).—The information to be provided under paragraph (1)(A) to a borrower of a loan made 

under part D (other than a Federal Direct PLUS Loan made on 

behalf of a dependent student) shall include the following: 

(A) To the extent practicable, the effect of accepting the 

loan to be disbursed on the eligibility of the borrower for 

other forms of student financial assistance. 

(B) An explanation of the use of the master promissory 

note. 

(C) An explanation that the borrower is not required to 

accept the full amount of the loan offered to the borrower. 

(D) An explanation that the borrower should consider accepting any grant, scholarship, or State or Federal workstudy jobs for which the borrower is eligible prior to accepting Federal student loans. 

(E) A recommendation to the borrower to exhaust the borrower’s Federal student loan options prior to taking out private education loans, an explanation that Federal student 

loans typically offer better terms and conditions than private education loans, an explanation of treatment of loans 

made under part D and private education loans in bankruptcy, and an explanation that if a borrower decides to 

take out a private education loan— 

(i) the borrower has the ability to select a private 

educational lender of the borrower’s choice; 


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58 

(ii) the proposed private education loan may impact 

the borrower’s potential eligibility for other financial 

assistance, including Federal financial assistance 

under this title; and 

(iii) the borrower has a right— 

(I) to accept the terms of the private education 

loan within 30 calendar days following the date on 

which the application for such loan is approved 

and the borrower receives the required disclosure 

documents, pursuant to section 128(e) of the Truth 

in Lending Act (15 U.S.C. 1638(e)); and 

(II) to cancel such loan within 3 business days 

of the date on which the loan is consummated, 

pursuant to section 128(e)(7) of such Act (15 U.S.C. 

1638(e)(7)). 

(F) An explanation of the approved educational expenses 

for which the borrower may use a loan made under part D. 

(G) Information on the annual and aggregate loan limits 

for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans. 

(H) Information on how interest accrues and is capitalized during periods when the interest is not paid by either 

the borrower or the Secretary. 

(I) In the case of a Federal Direct PLUS Loan or a Federal Direct Unsubsidized Stafford Loan, the option of the 

borrower to pay the interest while the borrower is in school. 

(J) The definition of half-time enrollment at the institution, during regular terms and summer school, if applicable, and the consequences of not maintaining at least halftime enrollment. 

(K) An explanation of the importance of contacting the 

appropriate offices at the institution of higher education if 

the borrower withdraws prior to completing the borrower’s 

program of study so that the institution can provide exit 

counseling, including information regarding the borrower’s 

repayment options and loan consolidation. 

(L) For a first-time borrower— 

(i) a statement of the anticipated balance on the loan 

for which the borrower is receiving counseling under 

this subsection; 

(ii) based on such anticipated balance, the anticipated monthly payment amount under, at minimum— 

(I) the standard repayment plan; and 

(II) an income-based repayment plan under section 493C, as determined using regionally available data from the Bureau of Labor Statistics of 

the average starting salary for the occupation in 

which the borrower has an interest in or intends to 

be employed; and 

(iii) an estimate of the projected monthly payment 

amount under each repayment plan described in clause 

(ii), based on the average cumulative indebtedness at 

graduation for borrowers of loans made under part D 

who are in the same program of study as the borrower. 


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59 

(M) For a borrower with an outstanding balance of principal or interest due on a loan made under this title— 

(i) a current statement of the amount of such outstanding balance and interest accrued; 

(ii) based on such outstanding balance, the anticipated monthly payment amount under, at minimum, 

the standard repayment plan and, using regionally 

available data from the Bureau of Labor Statistics of 

the average starting salary for the occupation the borrower intends to be employed, an income-based repayment plan under section 493C; and 

(iii) an estimate of the projected monthly payment 

amount under each repayment plan described in clause 

(ii), based on— 

(I) the outstanding balance described in clause 

(i); 

(II) the anticipated outstanding balance on the 

loan for which the student is receiving counseling 

under this subsection; and 

(III) a projection for any other loans made under 

part D that the borrower is reasonably expected to 

accept during the borrower’s program of study 

based on at least the expected increase in the cost 

of attendance of such program. 

(N) The obligation of the borrower to repay the full 

amount of the loan, regardless of whether the borrower 

completes or does not complete the program in which the 

borrower is enrolled within the regular time for program 

completion. 

(O) The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection 

procedures under Federal law, and litigation, and a notice 

of the institution’s most recent cohort default rate (defined 

in section 435(m)), an explanation of the cohort default 

rate, the most recent national average cohort default rate, 

and the most recent national average cohort default rate for 

the category of institution described in section 435(m)(4) to 

which the institution belongs. 

(P) Information on the National Student Loan Data System and how the borrower can access the borrower’s 

records. 

(Q) The contact information for the institution’s financial 

aid office or other appropriate office at the institution the 

borrower may contact if the borrower has any questions 

about the borrower’s rights and responsibilities or the terms 

and conditions of the loan. 

(5) BORROWERS RECEIVING PARENT PLUS LOANS FOR DEPEND- ENT STUDENTS.—The information to be provided under paragraph (1)(A) to a borrower of a Federal Direct PLUS Loan 

made on behalf of a dependent student shall include the following: 

(A) The information described in subparagraphs (A) 

through (C) and (N) through (Q) of paragraph (4). 

(B) The option of the borrower to pay the interest on the 

loan while the loan is in deferment. 


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60 

(C) For a first-time borrower of such loan— 

(i) a statement of the anticipated balance on the loan 

for which the borrower is receiving counseling under 

this subsection; 

(ii) based on such anticipated balance, the anticipated monthly payment amount under the standard repayment plan; and 

(iii) an estimate of the projected monthly payment 

amount under the standard repayment plan, based on 

the average cumulative indebtedness of other borrowers 

of Federal Direct PLUS Loans made on behalf of dependent students who are in the same program of 

study as the student on whose behalf the borrower borrowed the loan. 

(D) For a borrower with an outstanding balance of principal or interest due on such loan— 

(i) a statement of the amount of such outstanding 

balance; 

(ii) based on such outstanding balance, the anticipated monthly payment amount under the standard repayment plan; and 

(iii) an estimate of the projected monthly payment 

amount under the standard repayment plan, based 

on— 

(I) the outstanding balance described in clause 

(i); 

(II) the anticipated outstanding balance on the 

loan for which the borrower is receiving counseling 

under this subsection; and 

(III) a projection for any other Federal Direct 

PLUS Loan made on behalf of the dependent student that the borrower is reasonably expected to 

accept during the program of study of such student 

based on at least the expected increase in the cost 

of attendance of such program. 

(E) Debt management strategies that are designed to facilitate the repayment of such indebtedness. 

(F) An explanation that the borrower has the options to 

prepay each loan, pay each loan on a shorter schedule, and 

change repayment plans. 

(G) For each Federal Direct PLUS Loan made on behalf 

of a dependent student for which the borrower is receiving 

counseling under this subsection, the contact information 

for the loan servicer of the loan and a link to such servicer’s 

Website. 

(6) ANNUAL LOAN ACCEPTANCE.—Prior to making the first disbursement of a loan made under part D (other than a Federal 

Direct Consolidation Loan) to a borrower for an award year, an 

eligible institution, shall, as part of carrying out the counseling 

requirements of this subsection for the loan, ensure that after 

receiving the applicable counseling under paragraphs (2), (4), 

and (5) for the loan the borrower accepts the loan for such 

award year by— 

(A) signing the master promissory note for the loan; 


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61 

(B) signing and returning to the institution a separate 

written statement that affirmatively states that the borrower accepts the loan; or 

(C) electronically signing an electronic version of the 

statement described in subparagraph (B). 

(m) DISCLOSURES OF REIMBURSEMENTS FOR SERVICE ON ADVISORY BOARDS.— 

(1) DISCLOSURE.—Each institution of higher education participating in any program under this title shall report, on an 

annual basis, to the Secretary, any reasonable expenses paid 

or provided under section 140(d) of the Truth in Lending Act 

to any employee who is employed in the financial aid office of 

the institution, or who otherwise has responsibilities with respect to education loans or other financial aid of the institution. Such reports shall include— 

(A) the amount for each specific instance of reasonable 

expenses paid or provided; 

(B) the name of the financial aid official, other employee, 

or agent to whom the expenses were paid or provided; 

(C) the dates of the activity for which the expenses were 

paid or provided; and 

(D) a brief description of the activity for which the expenses were paid or provided. 

(2) REPORT TO CONGRESS.—The Secretary shall summarize 

the information received from institutions of higher education 

under paragraph (1) in a report and transmit such report annually to the authorizing committees. 

(n) ONLINE COUNSELING TOOLS.— 

(1) IN GENERAL.—Beginning not later than 1 year after the 

date of enactment of the Empowering Students Through Enhanced Financial Counseling Act, the Secretary shall maintain— 

(A) an online counseling tool that provides the exit counseling required under subsection (b) and meets the applicable requirements of this subsection; and 

(B) an online counseling tool that provides the annual 

counseling required under subsection (l) and meets the applicable requirements of this subsection. 

(2) REQUIREMENTS OF TOOLS.—In maintaining the online 

counseling tools described in paragraph (1), the Secretary shall 

ensure that each such tool is— 

(A) consumer tested, in consultation with other relevant 

Federal agencies, to ensure that the tool is effective in helping individuals understand their rights and obligations 

with respect to borrowing a loan made under part D or receiving a Federal Pell Grant; 

(B) understandable to students receiving Federal Pell 

Grants and borrowers of loans made under part D; and 

(C) freely available to all eligible institutions. 

(3) RECORD OF COUNSELING COMPLETION.—The Secretary 

shall— 

(A) use each online counseling tool described in paragraph (1) to keep a record of which individuals have received counseling using the tool, and notify the applicable 


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institutions of the individual’s completion of such counseling; 

(B) in the case of a borrower who receives annual counseling for a loan made under part D using the tool described in paragraph (1)(B), notify the borrower by when 

the borrower should accept, in a manner described in subsection (l)(6), the loan for which the borrower has received 

such counseling; and 

(C) in the case of a borrower described in subsection 

(b)(1)(B) at an institution that uses the online counseling 

tool described in paragraph (1)(A) of this subsection, the 

Secretary shall attempt to provide the information described in subsection (b)(1)(A) to the borrower through such 

tool. 

* * * * * * * 

Æ 


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