I 

108TH CONGRESS 

1ST SESSION H. R. 3311

To amend the Higher Education Act of 1965 to address the rising cost 

of postsecondary education. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 16, 2003

Mr. MCKEON (for himself, Mr. BOEHNER, Mr. ISAKSON, Mr. PETRI, Mr. 

COLE, and Mr. DUNCAN) introduced the following bill; which was referred 

to the Committee on Education and the Workforce 

A BILL

To amend the Higher Education Act of 1965 to address 

the rising cost of postsecondary education.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Affordability in Higher Education Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Reference; effective date. 

TITLE I—COLLEGE AFFORDABILITY INDEX 

Sec. 101. Establishment of index. 
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‘‘Sec. 131. Consumer information and public accountability in higher education.’’

TITLE II—INNOVATIVE APPROACHES TO HIGHER EDUCATION 

Sec. 201. College Affordability Demonstration Program. 

‘‘Sec. 486A. College Affordability Demonstration Program.’’

TITLE III—TRANSFER OF CREDIT 

Sec. 301. Requirement relating to credit transfer. 

TITLE IV—SENSE OF CONGRESS 

Sec. 401. Regulatory burden impact on tuition and fees.

1 SEC. 2. REFERENCE; EFFECTIVE DATE. 

2 (a) REFERENCE.—Except as otherwise expressly pro3 vided in this Act, whenever in this Act an amendment or 

4 repeal is expressed in terms of an amendment to, or repeal 

5 of, a section or other provision, the reference shall be con6 sidered to be made to a section or other provision of the 

7 Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 

8 (b) EFFECTIVE DATE.—Except as otherwise provided 

9 in this Act, the amendments made by this Act shall take 

10 effect on the date of enactment of this Act. 

11 TITLE I—COLLEGE 

12 AFFORDABILITY INDEX 

13 SEC. 101. ESTABLISHMENT OF INDEX. 

14 Section 131 (20 U.S.C. 1015) is amended to read as 

15 follows: 

16 ‘‘SEC. 131. CONSUMER INFORMATION AND PUBLIC AC17 COUNTABILITY IN HIGHER EDUCATION. 

18 ‘‘(a) DATA COLLECTION.—
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1 ‘‘(1) DATA SYSTEMS.—The Secretary shall con2 tinue to redesign the relevant parts of the postsec3 ondary education data systems to include additional 

4 data as required by this section and to continue to 

5 improve the usefulness and timeliness of data col6 lected by such systems. 

7 ‘‘(2) INFORMATION FROM INSTITUTIONS.—The 

8 Commissioner of Education Statistics shall collect, 

9 for each academic year and in accordance with 

10 standard definitions developed by the Commissioner 

11 of Education Statistics (including definitions devel12 oped under section 131(a)(3)(A) as in effect on the 

13 day before the date of enactment of the Affordability 

14 in Higher Education Act of 2003), from at least all 

15 institutions of higher education participating in pro16 grams under title IV, and such institutions shall 

17 provide, the following data: 

18 ‘‘(A) the tuition and fees charged for a 

19 full-time undergraduate student; 

20 ‘‘(B) the room and board charges for such 

21 a student; 

22 ‘‘(C) the cost of attendance for a full-time 

23 undergraduate student, consistent with the pro24 visions of section 472; 
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1 ‘‘(D) the average amount of financial as2 sistance received by a full-time undergraduate 

3 student, including—

4 ‘‘(i) each type of assistance or benefits 

5 described in 428(a)(2)(C)(ii); 

6 ‘‘(ii) fellowships; 

7 ‘‘(iii) institutional and other assist8 ance; 

9 ‘‘(iv) loans under parts B and D; 

10 ‘‘(E) the number of students receiving fi11 nancial assistance described in each clause of 

12 subparagraph (D); and 

13 ‘‘(F) the institutional instructional expend14 iture per full-time equivalent student. 

15 ‘‘(b) DATA DISSEMINATION.—The Secretary shall 

16 make available the data collected pursuant to this section, 

17 including an institution’s college affordability index as cal18 culated in accordance with subsection (c), and its afford19 ability alert status (if required under subsection 

20 (d)(3)(A)(ii)). Such data shall be made available in a man21 ner that permits the review and comparison of data sub22 missions of individual institutions of higher education. 

23 Such data shall be presented in a form that is easily acces24 sible and understandable and allows parents and students 

25 to make informed decisions based on the prices for typical 
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1 full-time undergraduate students and the institution’s rate 

2 of cost increase. 

3 ‘‘(c) COLLEGE AFFORDABILITY INDEX.—

4 ‘‘(1) IN GENERAL.—The Secretary shall, on the 

5 basis of the data submitted under subsection (a), 

6 calculate a college affordability index for each insti7 tution of higher education submitting such data and 

8 shall make the index available in accordance with 

9 subsection (b) as soon as operationally possible on 

10 the Department’s college opportunity on line 

11 website. 

12 ‘‘(2) CALCULATION OF INDEX.—The college af13 fordability index shall be equal to—

14 ‘‘(A) the percentage increase in the tuition 

15 and fees charged for a first-time, full-time, full16 year undergraduate student between the first of 

17 3 most recent preceding academic years and the 

18 last of those 3 academic years, divided by 

19 ‘‘(B) the percentage increase in the Con20 sumer Price Index-All Urban Consumers (Cur21 rent Series) from July of the first of those 3 

22 academic years to July of the last of those 3 

23 academic years. 

24 ‘‘(d) OUTCOMES AND ACTIONS.—
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1 ‘‘(1) RESPONSE FROM INSTITUTION.—Effective 

2 on June 30, 2008, an institution that has a college 

3 affordability index that exceeds 2.0 for any 3-year 

4 interval ending on or after that date shall provide a 

5 report to the Secretary, in such a form, at such 

6 time, and containing such information as the Sec7 retary may require. Such report shall include—

8 ‘‘(A) an explanation of the factors contrib9 uting to the increase in the institution’s costs 

10 and in the tuition and fees charged to students; 

11 ‘‘(B) a management plan stating the spe12 cific steps the institution is and will be taking 

13 to reduce its college affordability index; 

14 ‘‘(C) an action plan, including a schedule, 

15 by which the institution will reduce increases in 

16 or stabilize, such costs and tuition and fees; and 

17 ‘‘(D) if determinations of tuition and fee 

18 increases are not within the exclusive control of 

19 the institution, a description of the agency or 

20 instrumentality of State government or other 

21 entity that participates in such determinations 

22 and the authority exercised by such agency, in23 strumentality, or entity. 

24 ‘‘(2) INFORMATION TO THE PUBLIC.—Upon re25 ceipt of the institution’s report and management 
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1 plan under paragraph (1), the Secretary shall make 

2 the institution’s report required under paragraph (1) 

3 available to the public in accordance with subsection 

4 (b). 

5 ‘‘(3) CONSEQUENCES OF FAILURE TO REDUCE

6 COLLEGE AFFORDABILITY INDEX.—

7 ‘‘(A) CONSEQUENCES FOR TWO YEAR CON8 TINUATION OF FAILURE.—If the Secretary de9 termines that the institution has failed to com10 ply with the management plan and action plan 

11 submitted by the institution under this sub12 section following the next 2 academic years that 

13 begin after the submission of such plan, and 

14 has failed to reduce the college affordability 

15 index below 2.0 for such 2 academic years, the 

16 Secretary—

17 ‘‘(i) shall make available to the public 

18 a detailed report provided by the institu19 tion on all costs and expenditures and on 

20 all tuition and fees charged to students; 

21 ‘‘(ii) shall place the institution on an 

22 affordability alert status and shall make 

23 the information regarding the institution’s 

24 failure available in accordance with sub25 section (b); 
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1 ‘‘(iii) shall notify the institution’s ac2 crediting agency of the institution’s failure; 

3 and 

4 ‘‘(iv) may require the institution to 

5 submit to a review and audit by the In6 spector General of the Department of Edu7 cation to determine the cause of the insti8 tution’s failure. 

9 ‘‘(B) LOSS OF ELIGIBILITY TO PARTICI10 PATE.—If the Secretary determines that the 

11 failure to reduce the college affordability index 

12 below 2.0 has continued for 3 academic years 

13 after the submission of the management plan, 

14 the Secretary shall provide reasonable notice to 

15 the institution of action to be taken, after op16 portunity for a hearing, to remove the institu17 tion from participation in all the programs 

18 under title IV, other than under subpart 1 of 

19 part A, and parts B and D. No such removal 

20 shall, in the case of any grant awarded for a 

21 multiyear term prior to such removal, result in 

22 the termination of such grant before the end of 

23 such term. 

24 ‘‘(C) INAPPLICABILITY OF LOAN LIMIT IN25 CREASES.—Notwithstanding subparagraph (B) 
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1 and the provisions on annual and aggregate 

2 loan limits in parts B and D, no increase in 

3 loan limits under part B or D of title IV that 

4 is enacted by Congress after the date of enact5 ment of this section shall apply to a loan to 

6 cover the cost of attendance at an institution 

7 that has lost eligibility to participate in other 

8 programs pursuant to subparagraph (B). 

9 ‘‘(D) REGAINING ELIGIBILITY.—The Sec10 retary shall prescribe procedures by which an 

11 institution that reduces its college affordability 

12 index may regain eligibility for participation 

13 after any removal from participation under sub14 paragraph (B). 

15 ‘‘(4) INFORMATION TO STATE AGENCIES.—Any 

16 institution that reports under paragraph (1)(C) that 

17 an agency or instrumentality of State government or 

18 other entity participates in the determinations of tui19 tion and fee increases shall, prior to submitting any 

20 information to the Secretary under this subsection, 

21 submit such information to, and request the com22 ments and input of, such agency, instrumentality, or 

23 entity. With respect to any such institution, the Sec24 retary shall provide a copy of any communication by 
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1 the Secretary with that institution to such agency, 

2 instrumentality, or entity. 

3 ‘‘(5) EXEMPTIONS.—

4 ‘‘(A) RELATIVE PRICE EXEMPTION.—The 

5 Secretary shall, for any 3-year interval for 

6 which college affordability indexes are computed 

7 under paragraph (1), determine and publish the 

8 dollar amount that, for each class of institution 

9 described in subparagraph (C) of this para10 graph, represents the maximum tuition and fees 

11 charged for a full-time undergraduate student 

12 by the least costly quartile of institutions within 

13 each such class during the last year of such 3-

14 year interval. An institution that has a college 

15 affordability index computed under paragraph 

16 (1) that exceeds 2.0 for any such 3-year inter17 val, but that, on average during such 3-year in18 terval, charges less than such maximum tuition 

19 and fees shall not be subject to the actions re20 quired by subparagraph (B) or (C) of para21 graph (1), or any action under paragraph (3), 

22 unless such institution, for a subsequent 3-year 

23 interval, charges more than such maximum tui24 tion and fees. 
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1 ‘‘(B) DOLLAR INCREASE EXEMPTION.—An 

2 institution that has a college affordability index 

3 computed under paragraph (1) that exceeds 2.0 

4 for any 3-year interval, but that exceeds such 

5 2.0 by a dollar amount that is less than $500, 

6 shall not be subject to the actions required by 

7 subparagraph (B) or (C) of paragraph (1), or 

8 any action under paragraph (3), unless such in9 stitution has a college affordability index for a 

10 subsequent 3-year interval that exceeds 2.0 by 

11 more than such dollar amount. 

12 ‘‘(C) CLASSES OF INSTITUTIONS.—For 

13 purposes of subparagraph (B), the classes of in14 stitutions shall be those sectors used by the in15 tegrated postsecondary education data system, 

16 based on whether the institution is public, non17 profit private, or for-profit private, and whether 

18 the institution has a 4-year, 2-year, or less than 

19 2-year program of instruction. 

20 ‘‘(e) FINES.—In addition to actions authorized in 

21 section 487(c), the Secretary may impose a fine in an 

22 amount not to exceed $25,000 on an institution of higher 

23 education for failing to provide the information described 

24 in this section in a timely and accurate manner, or for 

25 failing to otherwise cooperate with the National Center for 
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1 Education Statistics regarding efforts to obtain data on 

2 the cost and price of higher education under this section 

3 and pursuant to the program participation agreement en4 tered into under section 487. 

5 ‘‘(f) GAO STUDY AND REPORT.—

6 ‘‘(1) GAO STUDY.—The Comptroller General 

7 shall conduct a study of the policies and procedures 

8 implemented by institutions in increasing the afford9 ability of postsecondary education. Such study shall 

10 include information with respect to—

11 ‘‘(A) a list of those institutions that—

12 ‘‘(i) have reduced their college afford13 ability indexes; or 

14 ‘‘(ii) are, as determined under sub15 section (d)(5)(A), within the least costly 

16 quartile of institutions within each class 

17 described in subsection (d)(5)(C); 

18 ‘‘(B) policies implemented to stem the in19 crease in tuition and fees and institutional 

20 costs; 

21 ‘‘(C) the extent to which room and board 

22 costs and prices changed; 

23 ‘‘(D) the extent to which other services 

24 were altered to affect tuition and fees; 
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1 ‘‘(E) the extent to which the institution’s 

2 policies affected student body demographics; 

3 ‘‘(F) what, if any, operational factors 

4 played a role in reducing tuition and fees; 

5 ‘‘(G) the extent to which academic quality 

6 was affected, and how; 

7 ‘‘(H) the extent to which policies and prac8 tices reducing costs and prices may be rep9 licated from one institution to another; and 

10 ‘‘(I) other information as necessary to de11 termine best practices in increasing the afford12 ability of postsecondary education. 

13 ‘‘(2) FINAL REPORT.—The Comptroller General 

14 shall submit a report regarding the findings of the 

15 study required by paragraph (2) to the appropriate 

16 authorizing committees of Congress not later than 

17 July 31, 2010. 

18 ‘‘(g) STUDENT AID RECIPIENT SURVEY.—

19 ‘‘(1) SURVEY REQUIRED.—The Secretary shall 

20 conduct a survey of student aid recipients under title 

21 IV on a regular and State-by-State basis, but not 

22 less than once every 4 years— 

23 ‘‘(A) to identify the population of students 

24 receiving Federal student aid; 
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1 ‘‘(B) to describe the income distribution 

2 and other socioeconomic characteristics of fed3 erally aided students; 

4 ‘‘(C) to describe the combinations of aid 

5 from State, Federal, and private sources re6 ceived by students from all income groups; 

7 ‘‘(D) to describe the debt burden of edu8 cational loan recipients and their capacity to 

9 repay their education debts, and the impact of 

10 such debt burden on career choices; 

11 ‘‘(E) to describe the role played by the 

12 price of postsecondary education in the deter13 mination by students of what institution to at14 tend; and 

15 ‘‘(F) to describe how the increased costs of 

16 textbooks and other instructional materials af17 fects the costs of postsecondary education to 

18 students. 

19 ‘‘(2) SURVEY DESIGN.—The survey shall be 

20 representative of full-time and part-time, under21 graduate, graduate, and professional and current 

22 and former students in all types of institutions, and 

23 designed and administered in consultation with the 

24 Congress and the postsecondary education commu25 nity. 
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1 ‘‘(3) DISSEMINATION.—The Secretary shall dis2 seminate the information resulting from the survey 

3 in both printed and machine readable form. 

4 ‘‘(h) REGULATIONS.—The Secretary is authorized to 

5 issue such regulations as may be necessary to carry out 

6 the provisions of this section.’’. 

7 TITLE II—INNOVATIVE AP8 PROACHES TO HIGHER EDU9 CATION 

10 SEC. 201. COLLEGE AFFORDABILITY DEMONSTRATION PRO11 GRAM. 

12 Part G of title IV is amended by inserting after sec13 tion 486 (20 U.S.C. 1093) the following new section: 

14 ‘‘SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION 

15 PROGRAM. 

16 ‘‘(a) PURPOSE.—It is the purpose of this section—

17 ‘‘(1) to provide, through a college affordability 

18 demonstration program, for increased innovation in 

19 the delivery of higher education and student finan20 cial aid in a manner resulting in reduced costs for 

21 students as well as the institution by accelerating 

22 degree or program completion, increasing availability 

23 of, and access to, distance components of education 

24 delivery, and other alternative methodologies; and 

25 ‘‘(2) to help determine—
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1 ‘‘(A) the most effective means of delivering 

2 student financial aid as well as quality edu3 cation; 

4 ‘‘(B) the specific statutory and regulatory 

5 requirements that should be altered to provide 

6 for more efficient and effective delivery of stu7 dent financial aid, as well as access to high 

8 quality distance education programs, resulting 

9 in a student more efficiently completing post10 secondary education; and 

11 ‘‘(C) the most effective methods of obtain12 ing and managing institutional resources. 

13 ‘‘(b) DEMONSTRATION PROGRAM AUTHORIZED.—

14 ‘‘(1) IN GENERAL.—In accordance with the 

15 purposes described in subsection (a) and the provi16 sions of subsection (d), the Secretary is authorized 

17 to select not more than 100 institutions of higher 

18 education or systems of such institutions for vol19 untary participation in the College Affordability 

20 Demonstration Program in order to enable partici21 pating institutions to carry out such purposes by 

22 providing programs of postsecondary education, and 

23 making available student financial assistance under 

24 this title to students enrolled in those programs, in 
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1 a manner that would not otherwise meet the require2 ments of this title. 

3 ‘‘(2) WAIVERS.—The Secretary is authorized to 

4 waive for any institutions of higher education, or 

5 any system or consortia of institutions of higher 

6 education, selected for participation in the College 

7 Affordability Demonstration Program, any require8 ments of this Act or the regulations thereunder as 

9 deemed necessary by the Secretary to meet the pur10 pose described in subsection (a)(1). 

11 ‘‘(3) ELIGIBLE APPLICANTS.—

12 ‘‘(A) ELIGIBLE INSTITUTIONS.—Except as 

13 provided in subparagraphs (B) and (C), only an 

14 institution of higher education that is eligible to 

15 participate in programs under this title shall be 

16 eligible to participate in the demonstration pro17 gram authorized under this section. 

18 ‘‘(B) PROHIBITION.—An institution of 

19 higher education described in section 

20 102(a)(1)(C) shall not be eligible to participate 

21 in the demonstration program authorized under 

22 this section. 

23 ‘‘(C) SPECIAL RULE.—Subject to subpara24 graph (B), an institution of higher education 

25 that meets the requirements of subsection (a) of 
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1 section 102, other than the requirement of 

2 paragraph (3)(A) or (3)(B) of such subsection, 

3 and that provides a 2-year or 4-year program of 

4 instruction for which the institution awards an 

5 associate or baccalaureate degree, shall be eligi6 ble to participate in the demonstration program 

7 authorized under this section. 

8 ‘‘(c) APPLICATION.—

9 ‘‘(1) IN GENERAL.—Each institution or system 

10 of institutions desiring to participate in the dem11 onstration program under this section shall submit 

12 an application to the Secretary at such time and in 

13 such manner as the Secretary may require. 

14 ‘‘(2) CONTENTS OF APPLICATIONS.—Each ap15 plication for the college affordability demonstration 

16 program shall include at least the following: 

17 ‘‘(A) a description of the institution or sys18 tem of institutions and what quality assurance 

19 mechanisms are in place to insure the integrity 

20 of the federal financial aid programs; 

21 ‘‘(B) a description of each regulatory or 

22 statutory requirement for which waivers are 

23 sought, with a reason for each waiver; 

24 ‘‘(C) a description of the programs being 

25 offered and the affected students; 
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1 ‘‘(D) a description of the expected out2 comes of the program changes proposed, includ3 ing the estimated reductions in costs both for 

4 the institution and for students; 

5 ‘‘(E) a description of any collaborative ar6 rangements with other institutions or organiza7 tions to reduce costs; 

8 ‘‘(F) a description of any expected eco9 nomic impact of participation in the program 

10 within the community in which the institution is 

11 located; 

12 ‘‘(G) a description of how the institution 

13 will reduce the costs of instructional materials, 

14 including textbooks; 

15 ‘‘(H) an assurance that the participating 

16 institution or system of institutions will offer 

17 full cooperation with the ongoing evaluations of 

18 the demonstration program provided for in this 

19 section; and 

20 ‘‘(I) any other information or assurances 

21 the Secretary may require. 

22 ‘‘(d) SELECTION.—In selecting institutions to partici23 pate in the demonstration program under this section, the 

24 Secretary shall take into account—
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1 ‘‘(1) the number and quality of applications re2 ceived, determined on the basis of the contents re3 quired by subsection (c)(2); 

4 ‘‘(2) the Department’s capacity to oversee and 

5 monitor each institution’s participation; 

6 ‘‘(3) an institution’s—

7 ‘‘(A) financial responsibility; 

8 ‘‘(B) administrative capability; 

9 ‘‘(C) program or programs being offered 

10 via distance education; 

11 ‘‘(D) student completion rates; and 

12 ‘‘(E) student loan default rates; and 

13 ‘‘(4) ensuring the participation of a diverse 

14 group of institutions with respect to size, mission, 

15 and geographic distribution. 

16 ‘‘(e) NOTIFICATION.—The Secretary shall make 

17 available to the public and to the Committee on Health, 

18 Education, Labor, and Pensions of the Senate and the 

19 Committee on Education and the Workforce of the House 

20 of Representatives a list of institutions and systems of in21 stitutions selected to participate in the demonstration pro22 gram authorized by this section. Such notice shall include 

23 a listing of the specific statutory and regulatory require24 ments being waived for each institution or system of insti-
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1 tutions and a description of the distance education courses 

2 to be offered. 

3 ‘‘(f) EVALUATIONS AND REPORTS.—

4 ‘‘(1) EVALUATION.—The Secretary shall evalu5 ate the demonstration program authorized under 

6 this section on a biennial basis. Such evaluations 

7 specifically shall review—

8 ‘‘(A) the number and types of students 

9 participating in the programs offered, including 

10 the progress of participating students toward 

11 recognized certificates or degrees and the extent 

12 to which participation in such programs in13 creased; 

14 ‘‘(B) issues related to student financial as15 sistance for distance education; 

16 ‘‘(C) effective technologies and alternative 

17 methodologies for delivering student financial 

18 assistance; 

19 ‘‘(D) the extent of the cost savings to the 

20 institution, the student, and the Federal Gov21 ernment by virtue of the waivers provided, and 

22 an estimate as to future cost savings should the 

23 demonstration program continue; 
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1 ‘‘(E) the extent to which students saved 

2 money by virtue of completing their postsec3 ondary education sooner; 

4 ‘‘(F) the extent to which the institution re5 duced its tuition and fees and its costs by virtue 

6 of participation in the demonstration program; 

7 ‘‘(G) the extent to which any collaborative 

8 arrangements with other institutions or organi9 zations have reduced the participating institu10 tion’s costs; and 

11 ‘‘(H) the extent to which statutory or reg12 ulatory requirements not waived under the dem13 onstration program present difficulties for stu14 dents or institutions. 

15 ‘‘(2) POLICY ANALYSIS.—The Secretary shall 

16 review current policies and identify those policies 

17 that present impediments to the development and 

18 use of distance education and other nontraditional 

19 methods of expanding access to education. 

20 ‘‘(3) REPORTS.—The Secretary shall provide a 

21 report to the Committee on Health, Education, 

22 Labor, and Pensions of the Senate and the Com23 mittee on Education and the Workforce of the 

24 House of Representatives on an annual basis regard25 ing—
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1 ‘‘(A) the demonstration program author2 ized under this section; 

3 ‘‘(B) the results of the evaluations con4 ducted under subsection (f); 

5 ‘‘(C) the cost savings to the Federal Gov6 ernment by the demonstration program author7 ized by this section; and 

8 ‘‘(D) recommendations for policy, statu9 tory, or regulatory changes to increase the effi10 ciency and effective delivery of financial aid. 

11 ‘‘(g) OVERSIGHT.—In conducting the demonstration 

12 program authorized under this section, the Secretary 

13 shall, on a continuing basis—

14 ‘‘(1) ensure compliance of institutions or sys15 tems of institutions with the requirements of this 

16 title (other than the sections and regulations that 

17 are waived under subsection (b)(2)); 

18 ‘‘(2) provide technical assistance to institutions 

19 in their application to and participation in the dem20 onstration program; 

21 ‘‘(3) monitor fluctuations in the student popu22 lation enrolled in the participating institutions or 

23 systems of institutions; 

24 ‘‘(4) monitor changes in financial assistance 

25 provided at the institution; and 
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1 ‘‘(5) consult with appropriate accrediting agen2 cies or associations and appropriate State regulatory 

3 authorities. 

4 ‘‘(h) TERMINATION OF AUTHORITY.—The authority 

5 of the Secretary under this section shall cease to be effec6 tive on October 1, 2010.’’. 

7 TITLE III—TRANSFER OF 

8 CREDIT 

9 SEC. 301. REQUIREMENT RELATING TO CREDIT TRANSFER. 

10 (a) PROGRAM PARTICIPATION AGREEMENTS.—Sec11 tion 487(a) (20 U.S.C. 1094(a)) is amended by adding 

12 at the end the following new paragraph: 

13 ‘‘(24)(A) The institution will not exclude the 

14 transfer of credits earned by a student completing 

15 courses or programs at other eligible institutions of 

16 higher education solely on the basis of the agency or 

17 association that accredited such other eligible insti18 tution if that agency or association is recognized by 

19 the Secretary pursuant to section 496 to be a reli20 able authority as to the quality of the education or 

21 training offered and is currently listed by the Sec22 retary pursuant to section 101(c). 

23 ‘‘(B) The institution will base decisions on 

24 whether to accept such credits on the basis of wheth25 er (i) the courses or programs are equivalent in con-
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1 tent to the courses or programs offered by the insti2 tution, and (ii) the student completed such courses 

3 or programs at the institution’s required level of 

4 proficiency. 

5 ‘‘(C) The institution will report publicly, on an 

6 annual as well as a three-year rolling average basis, 

7 the percentage of credits accepted in transfer and 

8 fully counted toward the degree or certificate com9 pletion requirements of undergraduate students. 

10 Such data shall be disaggregated to report on the 

11 following categories of institutions from which cred12 its were accepted in transfer: (i) nationally accred13 ited; (ii) regionally accredited in the same State; (iii) 

14 regionally accredited in the same region; and (iv) re15 gionally accredited in a different region.’’. 

16 (b) ACCREDITING AGENCY AND ASSOCIATION RE17 QUIREMENTS.—Section 496(a) (20 U.S.C. 1099b(a)) is 

18 amended—

19 (1) by striking ‘‘and’’ at the end of paragraph 

20 (7); 

21 (2) by striking the period at the end of para22 graph (8) and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following new 

24 paragraph: 
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1 ‘‘(9) such agency or association not adopt or 

2 apply standards, policies, or practices that restrict or 

3 deny the transfer of credits earned by a student 

4 completing courses or programs at other eligible in5 stitutions of higher education solely on the basis of 

6 the agency or association that accredited such other 

7 eligible institution if that agency or association is 

8 recognized by the Secretary pursuant to this section 

9 to be a reliable authority as to the quality of the 

10 education or training offered and is currently listed 

11 by the Secretary pursuant to section 101(c).’’. 

12 (c) ACCREDITING AGENCY STANDARDS.—Section 

13 496(a)(5) (20 U.S.C. 1099b(a)(5)) is amended—

14 (1) by striking ‘‘and’’ at the end of subpara15 graph (I); 

16 (2) by inserting ‘‘and’’ after the semicolon at 

17 the end of subparagraph (J); and 

18 (3) by inserting after subparagraph (J) the fol19 lowing new subparagraph: 

20 ‘‘(K) policies for the transfer of credit and 

21 the notification of the public of such policies;’’. 

22 TITLE IV—SENSE OF CONGRESS 

23 SEC. 401. REGULATORY BURDEN IMPACT ON TUITION AND 

24 FEES. 

25 It is the sense of Congress that—
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1 (1) reducing administrative and regulatory bur2 dens within the Federal student financial assistance 

3 programs will improve efficiency and reduce the 

4 costs associated with the management of such pro5 grams, as well as increase the affordability of post6 secondary education for all students; 

7 (2) in consultation with postsecondary institu8 tions, States should take an active role in reviewing 

9 and modifying administrative and reporting require10 ments for institutions and students within the stu11 dent financial assistance programs controlled by 

12 such States, in an effort to reduce such burdens and 

13 costs; and 

14 (3) the Department of Education and the 

15 States, in considering the implementation of regula16 tions or administrative requirements, should take 

17 into consideration and determine the amount of ad18 ditional burden and costs being placed on institu19 tions and students before such regulation or admin20 istrative requirement is implemented.

Æ