II 

118TH CONGRESS 

2D SESSION S. 3727 

To establish the Proprietary Education Interagency Oversight Committee 

and to facilitate the disclosure and reporting of information regarding 

complaints and investigations related to proprietary institutions of higher 

education eligible to receive Federal education assistance. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 1, 2024 

Mr. DURBIN (for himself, Ms. SMITH, Mr. BLUMENTHAL, Mr. MERKLEY, and 

Ms. WARREN) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To establish the Proprietary Education Interagency Oversight Committee and to facilitate the disclosure and reporting of information regarding complaints and investigations related to proprietary institutions of higher education eligible to receive Federal education assistance. 

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. 

4 This Act may be cited as the ‘‘Proprietary Education 

5 Oversight Task Force Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) ACCREDITING AGENCY.—The term ‘‘accred2 iting agency’’ means a private educational associa3 tion that acts as a reliable authority on the quality 

4 of education or training provided by an institution of 

5 higher education and is recognized by the Secretary 

6 under section 496 of the Higher Education Act of 

7 1965 (20 U.S.C. 1099b). 

8 (2) DEPARTMENT.—Unless otherwise expressly 

9 provided, the term ‘‘Department’’ means the Depart10 ment of Education. 

11 (3) EXECUTIVE OFFICER.—The term ‘‘executive 

12 officer’’, with respect to a proprietary institution of 

13 higher education that is a publicly traded corpora14 tion, means— 

15 (A) the president of the corporation; 

16 (B) a vice president of the corporation who 

17 is in charge of a principal business unit, divi18 sion, or function of the corporation, such as 

19 sales, administration, or finance; or 

20 (C) any other officer or person who per21 forms a policy-making function for the corpora22 tion, including an executive officer of a sub23 sidiary of the corporation if the officer performs 

24 a policy making function for the corporation. 


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1 (4) FEDERAL EDUCATION ASSISTANCE.—The 

2 term ‘‘Federal education assistance’’ when used with 

3 respect to a proprietary institution of higher edu4 cation, means Federal funds that are disbursed or 

5 delivered by the Department, the Department of 

6 Veterans Affairs, or the Department of Defense to, 

7 or on behalf of, a student to be used for tuition, 

8 fees, instruction, or any other component of the stu9 dent’s cost of attendance (as defined in section 472 

10 of the Higher Education Act of 1965 (20 U.S.C. 

11 1087ll)) to attend the institution. 

12 (5) INSTITUTIONAL DEBT.—The term ‘‘institu13 tional debt’’ means any debt owed by a student or 

14 the parent of a student to an institution of higher 

15 education, including— 

16 (A) debt owed through a private loan pro17 gram, income-share agreement, or other financ18 ing product operated by the institution; 

19 (B) debt owed from a return of student as20 sistance made, insured, or guaranteed under 

21 title IV of the Higher Education Act 1965 (20 

22 U.S.C. 1070 et seq.) to the Department; and 

23 (C) debt owed from the student’s non24 payment of institutional charges or fees. 


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1 (6) PRIVATE EDUCATION LOAN.—The term 

2 ‘‘private education loan’’— 

3 (A) means a loan provided by a private 

4 educational lender (as defined in section 140(a) 

5 of the Truth in Lending Act (15 U.S.C. 

6 1650(a))) that— 

7 (i) is not made, insured, or guaran8 teed under title IV of the Higher Edu9 cation Act of 1965 (20 U.S.C. 1070 et 

10 seq.); 

11 (ii) is issued expressly for postsec12 ondary educational expenses to a borrower, 

13 regardless of whether the loan is provided 

14 through the educational institution that 

15 the subject student attends or directly to 

16 the borrower from the private educational 

17 lender (as so defined); and 

18 (iii) is not made, insured, or guaran19 teed under title VII or title VIII of the 

20 Public Health Service Act (42 U.S.C. 292 

21 et seq. and 296 et seq.); and 

22 (B) does not include an extension of credit 

23 under an open-end consumer credit plan, a re24 verse mortgage transaction, a residential mortVerDate Sep 11 2014 20:53 Feb 06, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3727.IS S3727

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1 gage transaction, or any other loan that is se2 cured by real property or a dwelling. 

3 (7) PROPRIETARY INSTITUTION OF HIGHER

4 EDUCATION.—The term ‘‘proprietary institution of 

5 higher education’’ has the meaning given the term in 

6 section 102(b) of the Higher Education Act of 1965 

7 (20 U.S.C. 1002(b)). 

8 (8) RECRUITING AND MARKETING ACTIVI9 TIES.— 

10 (A) IN GENERAL.—Except as provided in 

11 subparagraph (B), the term ‘‘recruiting and 

12 marketing activities’’ means activities that in13 clude any of the following: 

14 (i) Advertising and promotional activi15 ties, including paid announcements in 

16 newspapers, magazines, radio, television, 

17 billboards, electronic media, naming rights, 

18 or any other public medium of communica19 tion, including paying for displays or pro20 motions at job fairs, military installations, 

21 or college recruiting events, that are made 

22 directly or indirectly to a student, a pro23 spective student, the public, an accrediting 

24 agency, a State agency, or to the Secretary 

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1 cation, one of its representatives, or any 

2 person with whom the institution has an 

3 agreement to provide educational pro4 grams, advertising, or admissions services. 

5 (ii) Misleading statement, misrepre6 sentation, and substantial misrepresenta7 tion (as defined in section 668.71(c) of 

8 title 34, Code of Federal Regulations, or 

9 any successor regulation). 

10 (iii) Efforts to identify and attract 

11 prospective students, either directly or 

12 through a contractor or other third party, 

13 including contact concerning a prospective 

14 student’s potential enrollment or applica15 tion for a grant, a loan, or work assistance 

16 under title IV of the Higher Education Act 

17 of 1965 (20 U.S.C. 1070 et seq.) or par18 ticipation in preadmission or advising ac19 tivities, including soliciting an individual to 

20 provide contact information to a propri21 etary institution of higher education, in22 cluding through websites established for 

23 that purpose and funds paid to third par24 ties for that purpose. 


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1 (iv) Other activities as the Secretary 

2 may prescribe, including paying for pro3 motion or sponsorship of education or mili4 tary-related associations. 

5 (B) EXCEPTIONS.—Any activity that is re6 quired as a condition of the receipt of funds by 

7 an institution of higher education under title IV 

8 of the Higher Education Act of 1965 (20 

9 U.S.C. 1070 et seq.), is specifically authorized 

10 under that title, or is otherwise specified by the 

11 Secretary, is not a recruiting and marketing ac12 tivity under subparagraph (A). 

13 (9) SECRETARY.—Unless otherwise expressly 

14 provided, the term ‘‘Secretary’’ means the Secretary 

15 of Education. 

16 (10) STATE APPROVAL AGENCY.—The term 

17 ‘‘State approval agency’’ means any State agency 

18 that determines whether an institution of higher 

19 education is legally authorized within the State to 

20 provide a program of education beyond secondary 

21 education. 

22 (11) VETERANS SERVICE ORGANIZATION.—The 

23 term ‘‘veterans service organization’’ means an orga24 nization that is— 


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1 (A) recognized by the Secretary of Vet2 erans Affairs for the representation of veterans 

3 under section 5902 of title 38, United States 

4 Code; 

5 (B) congressionally chartered under title 

6 36, United States Code, and serves or rep7 resents veterans; 

8 (C) recognized by the Secretary of Veteran 

9 Affairs under section 14.628 of title 38, Code 

10 of Federal Regulations (or a successor regula11 tion), as a national organization, State organi12 zation, tribal organization, or regional or local 

13 organization; or 

14 (D) an organization that has a record of 

15 demonstrating expertise in, assists in, or serves 

16 the interests of veterans in education. 

17 SEC. 3. ESTABLISHMENT OF PROPRIETARY EDUCATION 

18 INTERAGENCY OVERSIGHT COMMITTEE. 

19 (a) ESTABLISHMENT.—There is established the Pro20 prietary Education Interagency Oversight Committee (re21 ferred to in this Act as the ‘‘Committee’’) to be composed 

22 of the head (or the designee of the head who is designated 

23 under subsection (d)) of each of the following: 

24 (1) The Department. 


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1 (2) The Consumer Financial Protection Bu2 reau. 

3 (3) The Department of Justice. 

4 (4) The Securities and Exchange Commission. 

5 (5) The Department of Defense. 

6 (6) The Department of Veterans Affairs. 

7 (7) The Federal Trade Commission. 

8 (8) The Department of Labor. 

9 (9) The Internal Revenue Service. 

10 (10) At the discretion of the President, any 

11 other relevant Federal agency. 

12 (b) PURPOSES.—The Committee shall have the fol13 lowing purposes: 

14 (1) To improve enforcement of applicable Fed15 eral laws and regulations. 

16 (2) To increase accountability of proprietary in17 stitutions of higher education to students and tax18 payers. 

19 (3) To ensure the promotion of high-quality 

20 education programs. 

21 (4) To reduce and prevent fraud and abuse by 

22 proprietary institutions of higher education. 

23 (c) RESPONSIBILITIES.—To meet the purposes de24 scribed in subsection (b), the Committee shall— 


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1 (1) coordinate administrative oversight of pro2 prietary institutions of higher education— 

3 (A) such that the Federal agencies rep4 resented on the Committee may develop a 

5 memorandum of understanding to specify re6 sponsibilities of each of those agencies in cre7 ating the report under section 6; 

8 (B) to encourage information-sharing, to 

9 the extent practicable, among those agencies re10 lated to Federal investigations, audits, or in11 quiries of proprietary institutions of higher edu12 cation; and 

13 (C) to increase coordination and coopera14 tion between Federal and State agencies, in15 cluding State Attorneys General and State ap16 proval agencies, with respect to improving over17 sight and accountability of proprietary institu18 tions of higher education; and 

19 (2) synthesize cross-agency industry data on 

20 proprietary institutions of higher education to— 

21 (A) develop an annual report under section 

22 6; 

23 (B) publish a ‘‘For-Profit College Warning 

24 List for Parents and Students’’, in accordance 

25 with section 7; and 


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1 (C) develop consistency among Federal and 

2 State agencies in the dissemination of consumer 

3 information regarding proprietary institutions 

4 of higher education to ensure that students, 

5 parents, and other stakeholders have easy ac6 cess to that information. 

7 (d) MEMBERSHIP.— 

8 (1) DESIGNEES.—The head of a Federal agency 

9 listed in subsection (a) may designate a high-rank10 ing official of the agency to serve as a designee on 

11 the Committee. The designee shall be, whenever pos12 sible, the head of the portion of the agency that is 

13 most relevant to the purposes described in sub14 section (b). 

15 (2) CHAIRPERSON.—The Secretary or the Sec16 retary’s designee shall serve as the Chairperson of 

17 the Committee. 

18 (3) COMMITTEE SUPPORT.—The Chairperson of 

19 the Committee shall ensure that appropriate staff 

20 and officials at the Department are available to sup21 port Committee-related work. 

22 (e) COMMITTEE MEETINGS.—The members of the 

23 Committee shall meet regularly, but not less often than 

24 once during each quarter of each fiscal year, to carry out 


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1 the purposes described in subsection (b) and the respon2 sibilities described in subsection (c). 

3 (f) NOTIFICATION TO INDIVIDUALS WHO SUBMIT

4 COMPLAINTS.—The head of each Federal agency listed in 

5 subsection (a) shall notify each individual who submits to 

6 the Federal agency a complaint with respect to a propri7 etary institution of higher education that information from 

8 the complaint may be used to carry out the purposes de9 scribed in subsection (b). 

10 SEC. 4. PROPRIETARY EDUCATION OVERSIGHT ADVISORY 

11 COMMITTEE. 

12 (a) IN GENERAL.—The Department shall establish a 

13 Proprietary Education Oversight Advisory Committee (re14 ferred to in this Act as the ‘‘Advisory Committee’’) to ad15 vise the Committee. The Advisory Committee shall meet 

16 not less often than twice each fiscal year. 

17 (b) FACA APPLICABILITY.—The Advisory Com18 mittee shall be subject to chapter 10 of title 5, United 

19 States Code (commonly referred to as the ‘‘Federal Advi20 sory Committee Act’’). 

21 (c) MEMBERSHIP.— 

22 (1) IN GENERAL.—The Advisory Committee 

23 shall have 13 members, of which— 

24 (A) 4 members shall be representatives 

25 from State attorneys general— 


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1 (i) 2 of whom shall be appointed by 

2 the Speaker of the House of Representa3 tives, 1 of whom shall be appointed on the 

4 recommendation of the majority leader of 

5 the House of Representatives, and 1 of 

6 whom shall be appointed on the rec7 ommendation of the minority leader of the 

8 House of Representatives; and 

9 (ii) 2 of whom shall be appointed by 

10 the President pro tempore of the Senate, 1 

11 of whom shall be appointed on the rec12 ommendation of the majority leader of the 

13 Senate, and 1 of whom shall be appointed 

14 on the recommendation of the minority 

15 leader of the Senate; and 

16 (B) 9 members shall be appointed by the 

17 Secretary, of whom— 

18 (i) 1 member shall be a representative 

19 from a State approval agency; 

20 (ii) 1 member shall be a representa21 tive from a veterans service organization; 

22 (iii) 1 member shall be a representa23 tive from an accrediting agency; 

24 (iv) 1 member shall be a representa25 tive from a civil rights organization; 


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1 (v) 1 member shall be a representative 

2 from a proprietary institution of higher 

3 education; 

4 (vi) 1 member shall be a current stu5 dent of a proprietary institution of higher 

6 education who is a dependent student; 

7 (vii) 1 member shall be a current stu8 dent of a proprietary institution of higher 

9 education who is an independent student; 

10 (viii) 1 member shall be a representa11 tive from a consumer advocate organiza12 tion; and 

13 (ix) 1 member shall be a representa14 tive from a legal assistance organization 

15 that represents students or borrowers. 

16 (2) QUALIFICATIONS.—Individuals shall be ap17 pointed as members of the Advisory Committee— 

18 (A) on the basis of the individuals’ experi19 ence, integrity, impartiality, and good judg20 ment; and 

21 (B) on the basis of the individuals’ tech22 nical qualifications, professional standing, and 

23 demonstrated knowledge in the field of propri24 etary education. 


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1 (3) TERMS OF MEMBERS.—The term of office 

2 of each member of the Advisory Committee shall be 

3 for 6 years, except that any member appointed to fill 

4 a vacancy occurring prior to the expiration of the 

5 term for which the member’s predecessor was ap6 pointed shall be appointed for the remainder of such 

7 term. 

8 (4) VACANCY.—A vacancy on the Advisory 

9 Committee shall be filled in the same manner as the 

10 original appointment was made not later than 90 

11 days after the vacancy occurs. If a vacancy occurs 

12 in a position to be filled by the Secretary, the Sec13 retary shall publish a Federal Register notice solic14 iting nominations for the position not later than 30 

15 days after being notified of the vacancy. 

16 (d) DUTIES.—The Advisory Committee shall provide 

17 advice and recommendations to the Committee with re18 spect to— 

19 (1) complaints filed against proprietary institu20 tions of higher education with State attorneys gen21 eral or State approval agencies; 

22 (2) State enforcement actions against propri23 etary institutions of higher education; 

24 (3) minority enrollment in proprietary institu25 tions of higher education; 


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1 (4) veteran enrollment in proprietary institu2 tions of higher education; 

3 (5) outcome measures at proprietary institu4 tions of higher education, including graduation 

5 rates, percent of graduates earning more than a 

6 high school graduate, and licensure pass rates; 

7 (6) student loan burden from enrollment at pro8 prietary institutions of higher education, including 

9 median amount owed disaggregated by degree type, 

10 cohort default rate, and percent of students in re11 payment; 

12 (7) marketing and recruitment practices at pro13 prietary institutions of higher education; 

14 (8) per pupil expenditure for instructional pur15 poses at proprietary institutions of higher education; 

16 (9) enforcement actions the Federal Govern17 ment should take against proprietary institutions of 

18 higher education; and 

19 (10) preparation of the report under section 6. 

20 (e) SHARING OF DATA FROM COMPLAINTS.—To 

21 carry out the duties described under subsection (d), the 

22 Advisory Committee may share among the members of the 

23 Advisory Committee and the Committee information from 

24 complaints filed against proprietary institutions of higher 


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1 education consistent with the protection of the privacy and 

2 confidentiality of personally identifiable information. 

3 SEC. 5. COLLECTION AND TRACKING OF COMPLAINTS. 

4 (a) IN GENERAL.— 

5 (1) CENTRALIZED COLLECTION, MONITORING, 

6 AND RESPONSE.—In consultation with the Com7 mittee, the Secretary shall establish a single, toll8 free telephone number, a website, and a database (or 

9 use an existing database) to facilitate the centralized 

10 collection of, monitoring of, and response to student 

11 complaints regarding the services or activities of any 

12 proprietary institution of higher education that is el13 igible for Federal education assistance. 

14 (2) COORDINATION.—The Committee shall co15 ordinate with the Federal agencies represented on 

16 the Committee to route complaints to those agencies, 

17 where appropriate, and consistent with— 

18 (A) the protection of the privacy and con19 fidentiality of personally identifiable informa20 tion; and 

21 (B) data security and integrity. 

22 (b) USE OF COMPLAINT INFORMATION.—Informa23 tion collected from complaints under subsection (a) shall 

24 be used— 


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1 (1) to facilitate coordination among the Federal 

2 agencies represented on the Committee; 

3 (2) to facilitate investigations and enforcement 

4 actions against proprietary institutions of higher 

5 education; 

6 (3) to prepare the report under section 6; and 

7 (4) to prepare the For-Profit College Warning 

8 List for Parents and Students under section 7. 

9 (c) ROUTING COMPLAINTS TO STATES.—To the ex10 tent practicable, State approval agencies may receive ap11 propriate complaints from the systems established under 

12 subsection (a), if— 

13 (1) the State approval agency system has the 

14 functional capacity to receive calls or electronic re15 ports routed by the systems of the Department; 

16 (2) the State approval agency has satisfied any 

17 conditions of participation in the system that the 

18 Department may establish, including treatment of 

19 personally identifiable information and sharing of in20 formation on complaint resolution or related compli21 ance procedures and resources; and 

22 (3) participation by the State approval agency 

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1 tion of the privacy and confidentiality of personally 

2 identifiable information and for data integrity and 

3 security that apply to the Federal agencies described 

4 in subsection (d). 

5 (d) DATA-SHARING REQUIRED.— 

6 (1) IN GENERAL.—To facilitate preparation of 

7 the reports required under section 6, supervision and 

8 enforcement activities, and monitoring of the market 

9 for educational services provided by any proprietary 

10 institution of higher education that is eligible for 

11 Federal education assistance, the Committee mem12 bers shall share student complaint information with 

13 accrediting agencies, the Federal Trade Commission, 

14 other Federal agencies, and State agencies, subject 

15 to the Federal laws and standards applicable to Fed16 eral agencies for the protection of the privacy and 

17 confidentiality of personally identifiable information 

18 and for data security and integrity. 

19 (2) SHARING OF DATA WITH THE DEPART20 MENT.—The accrediting agencies, the Federal Trade 

21 Commission, and other Federal agencies shall share 

22 data relating to student complaints regarding edu23 cational services provided by any proprietary institu24 tion of higher education with the Department, sub25 ject to the Federal laws and standards applicable to 


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1 Federal agencies for the protection of the privacy 

2 and confidentiality of personally identifiable informa3 tion and for data security and integrity. 

4 SEC. 6. REPORT. 

5 (a) IN GENERAL.—The Committee shall submit an 

6 annual report to the Committee on Health, Education, 

7 Labor, and Pensions of the Senate, the Committee on 

8 Education and the Workforce of the House of Representa9 tives, and any other committee of Congress that the Com10 mittee determines appropriate. 

11 (b) CONFIDENTIALITY AND PUBLIC ACCESS.—The 

12 report described in subsection (a)— 

13 (1) shall not contain any personally identifiable 

14 information; and 

15 (2) shall be made available to the public in a 

16 manner that is easily accessible to parents, students, 

17 and other stakeholders. 

18 (c) CONTENTS.— 

19 (1) IN GENERAL.—The report described in sub20 section (a) shall include— 

21 (A) a description of the role of each mem22 ber of the Committee in achieving the purposes 

23 described in section 3(b); 

24 (B) an accounting of any negative or ad25 verse action taken by the Federal Government, 


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1 any member agency of the Committee, or a 

2 State to enforce Federal or State laws and reg3 ulations applicable to a proprietary institution 

4 of higher education; 

5 (C) a summary of complaints received, re6 solved, or pending against each proprietary in7 stitution of higher education during the applica8 ble year, including— 

9 (i) student complaints collected by the 

10 complaint system established under section 

11 5 or received by any member agency of the 

12 Committee; 

13 (ii) any complaint filed by a Federal 

14 or State agency in a Federal, State, local, 

15 or Tribal court; 

16 (iii) any administrative proceeding by 

17 a Federal or State agency involving non18 compliance of any applicable law or regula19 tion; 

20 (iv) any other review, audit, or admin21 istrative process by any Federal or State 

22 agency that results in a penalty, suspen23 sion, or termination from any Federal or 

24 State program; and 


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1 (v) any complaint, review, audit, or 

2 administrative process by an accrediting 

3 agency that results in probation or equiva4 lent action, denial, withdrawal, suspension, 

5 or termination of accreditation; 

6 (D) the data described in paragraph (2) 

7 and any other data relevant to proprietary insti8 tutions of higher education that the Committee 

9 determines appropriate; and 

10 (E) recommendations of the Committee for 

11 the legislative and administrative actions as the 

12 Committee determines are necessary to— 

13 (i) improve enforcement of applicable 

14 Federal laws; 

15 (ii) increase accountability of propri16 etary institutions of higher education to 

17 students, parents, and taxpayers; 

18 (iii) reduce and prevent fraud and 

19 abuse by proprietary institutions of higher 

20 education; and 

21 (iv) ensure the promotion of quality 

22 education programs. 

23 (2) DATA.— 

24 (A) INDUSTRY-WIDE DATA.—The report 

25 described in subsection (a) shall include data on 


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1 all proprietary institutions of higher education 

2 that consists of information regarding— 

3 (i) the total amount of Federal edu4 cation assistance that proprietary institu5 tions of higher education received for the 

6 previous academic year, and the percentage 

7 of the total amount of Federal education 

8 assistance provided to institutions of high9 er education (as defined in section 102 of 

10 the Higher Education Act of 1965 (20 

11 U.S.C. 1002)) for the previous academic 

12 year that reflects the total amount of Fed13 eral education assistance provided to pro14 prietary institutions of higher education 

15 for the previous academic year; 

16 (ii) the total amount of Federal edu17 cation assistance that proprietary institu18 tions of higher education received for the 

19 previous academic year, disaggregated 

20 by— 

21 (I) educational assistance in the 

22 form of a loan provided under title IV 

23 of the Higher Education Act of 1965 

24 (20 U.S.C. 1070 et seq.); 


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1 (II) educational assistance in the 

2 form of a grant provided under title 

3 IV of the Higher Education Act of 

4 1965 (20 U.S.C. 1070 et seq.); 

5 (III) educational assistance pro6 vided under chapter 33 of title 38, 

7 United States Code; 

8 (IV) assistance for tuition and 

9 expenses under section 2007 of title 

10 10, United States Code; 

11 (V) assistance provided under 

12 section 1784a of title 10, United 

13 States Code; and 

14 (VI) Federal education assistance 

15 not described in subclauses (I) 

16 through (V); 

17 (iii) the percentage of the total 

18 amount of Federal education assistance 

19 provided to institutions of higher education 

20 (as defined in section 102 of the Higher 

21 Education Act of 1965 (20 U.S.C. 1002)) 

22 for the previous academic year for each of 

23 the programs described in subclauses (I) 

24 through (VI) of clause (ii), that reflects the 

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1 ance provided to proprietary institutions of 

2 higher education for the previous academic 

3 year for each of those programs; 

4 (iv) the average retention and gradua5 tion rates for students pursuing a degree 

6 at proprietary institutions of higher edu7 cation; 

8 (v) the average cohort default rate (as 

9 defined in section 435(m) of the Higher 

10 Education Act of 1965 (20 U.S.C. 

11 1085(m)) for proprietary institutions of 

12 higher education, and the cohort default 

13 rate for each proprietary institution of 

14 higher education; 

15 (vi) the average pre-enrollment ex16 penditures on a per-enrolled-student basis, 

17 including expenditures on recruiting and 

18 marketing activities; 

19 (vii) the average educational and gen20 eral expenditures (as defined in section 

21 502 of the Higher Education Act of 1965 

22 (20 U.S.C. 1101a)) per student, excluding 

23 all pre-enrollment expenditures; 

24 (viii) for careers requiring the passage 

25 of a licensing examination— 


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1 (I) the passing rate of individuals 

2 who attended a proprietary institution 

3 of higher education taking the exam4 ination to pursue such a career; and 

5 (II) the passing rate of all indi6 viduals taking the exam to pursue 

7 such a career; and 

8 (ix) the use of private education loans 

9 at proprietary institutions of higher edu10 cation that includes— 

11 (I) an estimate of the total num12 ber of those loans; 

13 (II) information on the average 

14 debt, default rate, and interest rate of 

15 those loans; and 

16 (III) the names of each lender 

17 providing private education loans to 

18 borrowers with respect to each propri19 etary institution of higher education 

20 in the prior academic year, includ21 ing— 

22 (aa) the number of bor23 rowers receiving loans from each 

24 lender; and 


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1 (bb) the volume of dollars 

2 provided to borrowers with re3 spect to the proprietary institu4 tion of higher education by each 

5 lender. 

6 (B) DATA ON PUBLICLY TRADED COR7 PORATIONS.— 

8 (i) IN GENERAL.—The report de9 scribed in subsection (a) shall include data 

10 on proprietary institutions of higher edu11 cation that are publicly traded corpora12 tions, consisting of information on— 

13 (I) any pre-tax profit of those 

14 proprietary institutions of higher edu15 cation— 

16 (aa) reported as a total 

17 amount and an average percent 

18 of revenue for all those propri19 etary institutions of higher edu20 cation; and 

21 (bb) reported for each of 

22 those proprietary institutions of 

23 higher education; 

24 (II) revenue for those proprietary 

25 institutions of higher education spent 


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1 on recruiting and marketing activities, 

2 student instruction, and student sup3 port services, reported— 

4 (aa) as a total amount and 

5 an average percentage of revenue 

6 for all those proprietary institu7 tions of higher education; and 

8 (bb) for each of those pro9 prietary institutions of higher 

10 education; 

11 (III) total compensation pack12 ages, including bonuses, of the execu13 tive officers of each of those propri14 etary institutions of higher education; 

15 (IV) a list of institutional loan 

16 programs offered by each of those 

17 proprietary institutions of higher edu18 cation that includes information on 

19 the default and interest rates of those 

20 programs; and 

21 (V) the data described in clauses 

22 (ii) and (iii). 

23 (ii) DISAGGREGATED BY OWNER24 SHIP.—The report shall include data on 

25 proprietary institutions of higher education 


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1 that are publicly traded corporations, 

2 disaggregated by corporate or parent enti3 ty, brand name, and campus, consisting 

4 of— 

5 (I) the average total cost of at6 tendance at each proprietary institu7 tion of higher education, and informa8 tion comparing the total cost for each 

9 program to— 

10 (aa) the average total cost of 

11 attendance— 

12 (AA) at each public in13 stitution of higher edu14 cation; and 

15 (BB) at each public in16 stitution of higher education 

17 that offers the same level of 

18 education degree or certifi19 cation as the proprietary in20 stitution of higher edu21 cation; and 

22 (bb) the average total cost 

23 of attendance— 

24 (AA) at all institutions 

25 of higher education, includVerDate Sep 11 2014 20:53 Feb 06, 2024 Jkt 049200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S3727.IS S3727

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1 ing institutions that are 

2 public and institutions that 

3 are private; and 

4 (BB) at all institutions 

5 of higher education that 

6 offer the same level of edu7 cation degree or certification 

8 as the proprietary institu9 tion of higher education, in10 cluding institutions that are 

11 public and institutions that 

12 are private; 

13 (II) total enrollment, 

14 disaggregated by— 

15 (aa) individuals enrolled in 

16 programs taken online; 

17 (bb) individuals enrolled in 

18 programs that are not taken on19 line; and 

20 (cc) individuals enrolled in 

21 programs taken both online and 

22 not online; 

23 (III) the average retention and 

24 graduation rates for students purVerDate Sep 11 2014 20:53 Feb 06, 2024 Jkt 049200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S3727.IS S3727

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1 suing a degree at proprietary institu2 tions of higher education; 

3 (IV) the percentage of students 

4 enrolled in proprietary institutions of 

5 higher education who complete a pro6 gram of an institution within— 

7 (aa) the standard period of 

8 completion for the program; and 

9 (bb) a period that is 150 

10 percent of the standard period of 

11 completion; 

12 (V) the average total cost of at13 tendance for each program at propri14 etary institutions of higher education; 

15 (VI) the average cohort default 

16 rate, as defined in section 435(m) of 

17 the Higher Education Act of 1965 (20 

18 U.S.C. 1085(m)), for proprietary in19 stitutions of higher education, and an 

20 annual list of cohort default rates (as 

21 so defined) for all proprietary institu22 tions of higher education; 

23 (VII) the median Federal edu24 cational debt incurred by students 


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1 who complete a program at a propri2 etary institution of higher education; 

3 (VIII) the median Federal edu4 cational debt incurred by students 

5 who start but do not complete a pro6 gram at a proprietary institution of 

7 higher education; 

8 (IX) the job placement rate for 

9 students who complete a program at a 

10 proprietary institution of higher edu11 cation and the type of employment ob12 tained by those students; 

13 (X) for careers requiring the pas14 sage of a licensing examination, the 

15 passing rate for individuals who at16 tended a proprietary institution of 

17 higher education and passed the ex18 amination; 

19 (XI) the number of complaints 

20 from students enrolled in proprietary 

21 institutions of higher education who 

22 have submitted a complaint to any 

23 member agency of the Committee; and 

24 (XII) the volume of institutional 

25 debt, number of students who owe inVerDate Sep 11 2014 20:53 Feb 06, 2024 Jkt 049200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S3727.IS S3727

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1 stitutional debts, and average amount 

2 of institutional debt owed by each stu3 dent. 

4 (iii) DEPARTMENT OF DEFENSE AND

5 VETERANS AFFAIRS ASSISTANCE.— 

6 (I) IN GENERAL.—To the extent 

7 practicable, the report described in 

8 subsection (a) shall provide informa9 tion on the data described in clause 

10 (ii) for individuals using, to pay for 

11 the costs of attending a proprietary 

12 institution of higher education, Fed13 eral education assistance provided 

14 under— 

15 (aa) chapter 33 of title 38, 

16 United States Code; 

17 (bb) section 2007 of title 10, 

18 United States Code; and 

19 (cc) section 1784a of title 

20 10, United States Code. 

21 (II) REVENUE.—The report shall 

22 provide information on the revenue of 

23 proprietary institutions of higher edu24 cation that are publicly traded cor25 porations that is derived from the 


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1 Federal education assistance described 

2 in subclause (I). 

3 (C) COMPARISON DATA.—To the extent 

4 practicable, the report shall provide information 

5 comparing the data described in subparagraph 

6 (B) for proprietary institutions of higher edu7 cation that are publicly traded corporations 

8 with data for public institutions of higher edu9 cation disaggregated by State. 

10 (3) ACCOUNTING OF ANY ACTION.—As used in 

11 paragraph (1)(B), the term ‘‘any negative or adverse 

12 action’’ includes— 

13 (A) a complaint filed by a Federal or State 

14 agency in a local, State, Federal, or Tribal 

15 court; 

16 (B) an administrative proceeding by a 

17 Federal or State agency involving noncompli18 ance with any applicable law or regulation; or 

19 (C) any other review, audit, or administra20 tive process by any Federal or State agency 

21 that results in a penalty, suspension, or termi22 nation from any Federal or State program. 


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1 SEC. 7. FOR-PROFIT COLLEGE WARNING LIST FOR PAR2 ENTS AND STUDENTS. 

3 (a) IN GENERAL.—Each academic year, the Sec4 retary on behalf of the Committee shall publish a list to 

5 be known as the ‘‘For-Profit College Warning List for 

6 Parents and Students’’ to be comprised of the names of 

7 proprietary institutions of higher education— 

8 (1) that have been sued for financial relief by 

9 a Federal or State authority, or through a qui tam 

10 action in which the Federal Government has inter11 vened; 

12 (2) that are required to pay a debt or incur a 

13 liability from a settlement, arbitration proceeding, or 

14 final judgment in a judicial proceeding with a Fed15 eral or State agency and the case addresses mis16 representation, fraud, liability under sections 3729 

17 through 3733 of title 31, United States Code (com18 monly known as the ‘‘False Claims Act’’), or other 

19 borrower-defense-to-repayment claims; 

20 (3) that have pending claims for borrower relief 

21 discharge under the borrower defense to repayment 

22 regulations from students or former students of the 

23 institution and the Secretary has formed a group 

24 process to consider the claims; 

25 (4) that have had any eligibility for participa26 tion withdrawn or suspended with respect to— 


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1 (A) educational assistance in the form of a 

2 loan provided under title IV of the Higher Edu3 cation Act of 1965 (20 U.S.C. 1070 et seq.); 

4 (B) educational assistance in the form of a 

5 grant provided under title IV of the Higher 

6 Education Act of 1965 (20 U.S.C. 1070 et 

7 seq.); 

8 (C) educational assistance provided under 

9 chapter 33 of title 38, United States Code; 

10 (D) assistance for tuition and expenses 

11 under section 2007 of title 10, United States 

12 Code; 

13 (E) assistance provided under section 

14 1784a of title 10, United States Code; or 

15 (F) Federal education assistance not de16 scribed in subparagraphs (A) through (E); or 

17 (5) that have been deemed ineligible to receive 

18 Federal education assistance for the next year or re19 quired to repay Federal education assistance pre20 viously received in an applicable report year. 

21 (b) SUMMARY.—The For-Profit College Warning List 

22 for Parents and Students shall include a summary in plain 

23 language of the basis of each proprietary institution of 

24 higher education’s inclusion on the list. 


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1 (c) PROCEDURES.—The Committee shall establish 

2 and apply review procedures for the For-Profit College 

3 Warning List for Parents and Students, including evalua4 tion and withdrawal proceedings that provide— 

5 (1) for adequate written specification of— 

6 (A) the procedure for identifying propri7 etary intuitions of higher education for inclu8 sion on the list; and 

9 (B) identified deficiencies at the propri10 etary institutions of higher education; and 

11 (2) for sufficient opportunity for a written re12 sponse by a proprietary institution of higher edu13 cation regarding any deficiencies identified by the 

14 Committee— 

15 (A) within a timeframe determined by the 

16 Committee; and 

17 (B) prior to the final publication of the 

18 For-Profit College Warning List for Parents 

19 and Students. 

20 (d) PUBLICATION.— 

21 (1) IN GENERAL.—Not later than July 1 of 

22 each fiscal year, on behalf of the Committee, the 

23 Secretary shall publish the For-Profit College Warn24 ing List for Parents and Students prominently and 

25 in a manner that— 


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1 (A) is easily accessible to parents, current 

2 students, prospective students, and other stake3 holders; and 

4 (B) does not contain any personally identi5 fiable information. 

6 (2) USE OF PREEXISTING PLATFORM.—The 

7 Secretary may incorporate the For-Profit College 

8 Warning List for Parents and Students into pre9 existing, widely used platforms. 

Æ 


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