IB 

Union Calendar No. 413 

115TH CONGRESS 

2D SESSION H. R. 4508 

[Report No. 115–550] 

To support students in completing an affordable postsecondary education 

that will prepare them to enter the workforce with the skills they need 

for lifelong success. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 1, 2017 

Ms. FOXX (for herself and Mr. GUTHRIE) introduced the following bill; which 

was referred to the Committee on Education and the Workforce 

FEBRUARY 8, 2018 

Additional sponsors: Mr. WILSON of South Carolina, Mr. HUNTER, Mr. ROE

of Tennessee, Mr. THOMPSON of Pennsylvania, Mr. WALBERG, Mr. 

ROKITA, Mr. BARLETTA, Mr. MESSER, Mr. BYRNE, Mr. BRAT, Ms. 

STEFANIK, Mr. ALLEN, Mr. LEWIS of Minnesota, Mr. FRANCIS ROONEY

of Florida, Mr. MITCHELL, Mr. GARRETT, Mr. SMUCKER, Mr. FERGUSON, Mr. ESTES of Kansas, and Mrs. HANDEL

FEBRUARY 8, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on December 1, 2017] 


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A BILL 

To support students in completing an affordable postsecondary education that will prepare them to enter the 

workforce with the skills they need for lifelong success. 


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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 ‘‘Pro5 moting Real Opportunity, Success, and Prosperity through 

6 Education Reform Act’’ or the ‘‘PROSPER Act’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. References. 

Sec. 3. General effective date. 

TITLE I—GENERAL PROVISIONS 

PART A—DEFINITIONS

Sec. 101. Definition of institution of higher education. 

Sec. 102. Institutions outside the United States. 

Sec. 103. Additional definitions. 

Sec. 104. Regulatory relief. 

PART B—ADDITIONAL GENERAL PROVISIONS

Sec. 111. Free speech protections. 

Sec. 112. Sense of Congress on inclusion and respect. 

Sec. 113. National Advisory Committee on Institutional Quality and Integrity. 

Sec. 114. Repeal of certain reporting requirements. 

Sec. 115. Programs on drug and alcohol abuse prevention. 

Sec. 116. Campus access for religious groups. 

Sec. 117. Secretarial prohibitions. 

Sec. 118. Ensuring equal treatment by governmental entities. 

Sec. 119. Single-sex social student organizations. 

Sec. 120. Department staff. 

Sec. 120A. Department of Homeland Security Recruiting on Campus. 

PART C—COST OF HIGHER EDUCATION

Sec. 121. College Dashboard website. 

Sec. 122. Net price calculators. 

Sec. 123. Text book information. 

Sec. 124. Review of current data collection and feasibility study of improved data 

collection. 

PART D—ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL

ASSISTANCE

Sec. 131. Performance-based organization for the delivery of Federal student financial assistance. 


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Sec. 132. Administrative data transparency. 

Sec. 133. Report by GAO on transfer of functions of the Office of Federal Student 

Aid to the Department of Treasury. 

PART E—LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION

LOANS

Sec. 141. Modification of preferred lender arrangements. 

PART F—ADDRESSING SEXUAL ASSAULT

Sec. 151. Addressing sexual assault. 

TITLE II—EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS 

Sec. 201. Repeal. 

Sec. 202. Grants for access to high-demand careers. 

TITLE III—INSTITUTIONAL AID 

Sec. 301. Strengthening institutions. 

Sec. 302. Strengthening historically Black colleges and universities. 

Sec. 303. Historically Black college and university capital financing. 

Sec. 304. Minority Science and Engineering Improvement Program. 

Sec. 305. Strengthening historically Black colleges and universities and other minority-serving institutions. 

Sec. 306. General provisions. 

TITLE IV—STUDENT ASSISTANCE 

PART A—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER

EDUCATION

Sec. 401. Federal Pell Grants. 

Sec. 402. Federal TRIO programs. 

Sec. 403. Gaining early awareness and readiness for undergraduate programs. 

Sec. 404. Special programs for students whose families are engaged in migrant 

and seasonal farmwork. 

Sec. 405. Child care access means parents in school. 

Sec. 406. Repeals. 

Sec. 407. Sunset of TEACH grants. 

PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM

Sec. 421. Federal Direct Consolidation Loans. 

Sec. 422. Loan rehabilitation. 

Sec. 423. Loan forgiveness for teachers. 

Sec. 424. Loan forgiveness for service in areas of national need. 

Sec. 425. Loan repayment for civil legal assistance attorneys. 

Sec. 426. Sunset of cohort default rate and other conforming changes. 

Sec. 427. Additional disclosures. 

Sec. 428. Closed school and other discharges. 

PART C—FEDERAL WORK-STUDY PROGRAMS

Sec. 441. Purpose; authorization of appropriations. 

Sec. 442. Allocation formula. 

Sec. 443. Grants for Federal work-study programs. 

Sec. 444. Flexible use of funds. 


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Sec. 445. Job location and development programs. 

Sec. 446. Community service. 

Sec. 447. Work colleges. 

PART D—FEDERAL DIRECT STUDENT LOAN PROGRAM

Sec. 451. Termination of Federal Direct Loan Program under part D and other 

conforming amendments. 

Sec. 452. Borrower defenses. 

Sec. 453. Plain language disclosure form. 

Sec. 454. Administrative expenses. 

Sec. 455. Loan cancellation for teachers. 

PART E—FEDERAL ONE LOANS

Sec. 461. Wind-down of Federal Perkins Loan Program. 

Sec. 462. Federal ONE Loan program. 

PART F—NEED ANALYSIS

Sec. 471. Cost of attendance. 

Sec. 472. Simplified needs test. 

Sec. 473. Discretion of student financial aid administrators. 

Sec. 474. Definitions of total income and assets. 

PART G—GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

Sec. 481. Definitions of academic year and eligible program. 

Sec. 482. Programmatic loan repayment rates. 

Sec. 483. Master calendar. 

Sec. 484. FAFSA Simplification. 

Sec. 485. Student eligibility. 

Sec. 486. Statute of limitations. 

Sec. 487. Institutional refunds. 

Sec. 488. Information disseminated to prospective and enrolled students. 

Sec. 489. Early awareness of financial aid eligibility. 

Sec. 490. Distance education demonstration programs. 

Sec. 491. Contents of program participation agreements. 

Sec. 492. Regulatory relief and improvement. 

Sec. 493. Transfer of allotments. 

Sec. 494. Administrative expenses. 

Sec. 494A. Repeal of advisory committee. 

Sec. 494B. Regional meetings and negotiated rulemaking. 

Sec. 494C. Report to Congress. 

Sec. 494D. Deferral of loan repayment following active duty. 

Sec. 494E. Contracts; matching program. 

PART H—PROGRAM INTEGRITY

Sec. 495. Repeal of and prohibition on State authorization regulations. 

Sec. 496. Recognition of accrediting agency or association. 

Sec. 497. Eligibility and certification procedures. 

TITLE V—DEVELOPING INSTITUTIONS 

Sec. 501. Hispanic-serving institutions. 

Sec. 502. Promoting postbaccalaureate opportunities for Hispanic Americans. 

Sec. 503. General provisions. 


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TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 

Sec. 601. International and foreign language studies. 

Sec. 602. Business and international education programs. 

Sec. 603. Repeal of assistance program for Institute for International Public Policy. 

Sec. 604. General provisions. 

TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT 

PROGRAMS 

Sec. 701. Graduate education programs. 

Sec. 702. Repeal of Fund for the Improvement of Postsecondary Education. 

Sec. 703. Programs for students with disabilities. 

Sec. 704. Repeal of college access challenge grant program. 

TITLE VIII—OTHER REPEALS 

Sec. 801. Repeal of additional programs. 

TITLE IX—AMENDMENTS TO OTHER LAWS 

PART A—EDUCATION OF THE DEAF ACT OF 1986 

Sec. 901. Education of the Deaf Act of 1986. 

PART B—TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE

ACT OF 1978; DINE′ COLLEGE ACT

Sec. 911. Tribally Controlled Colleges and Universities Assistance Act of 1978. 

Sec. 912. Dine′ College Act. 

PART C—GENERAL EDUCATION PROVISIONS ACT

Sec. 921. Release of education records to facilitate the award of a recognized postsecondary credential. 

1 SEC. 2. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms of 

4 an amendment to, or repeal of, a section or other provision, 

5 the reference shall be considered to be made to a section or 

6 other provision of the Higher Education Act of 1965 (20 

7 U.S.C. 1001 et seq.). 

8 SEC. 3. GENERAL EFFECTIVE DATE. 

9 Except as otherwise provided in this Act or the amend10 ments made by this Act, this Act and the amendments made 


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1 by this Act shall take effect on the date of enactment of this 

2 Act. 

3 TITLE I—GENERAL PROVISIONS 

4 PART A—DEFINITIONS 

5 SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU6 CATION. 

7 Part A of title I (20 U.S.C. 1001 et seq.) is amended 

8 by striking section 101 (20 U.S.C. 1001) and inserting the 

9 following: 

10 ‘‘SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU11 CATION. 

12 ‘‘(a) INSTITUTION OF HIGHER EDUCATION.—For pur13 poses of this Act, the term ‘institution of higher education’ 

14 means an educational institution in any State that— 

15 ‘‘(1) admits as regular students only persons 

16 who— 

17 ‘‘(A) have a certificate of graduation from 

18 a school providing secondary education, or the 

19 recognized equivalent of such a certificate, or 

20 who meet the requirements of section 484(d); 

21 ‘‘(B) are beyond the age of compulsory 

22 school attendance in the State in which the insti23 tution is located; or 

24 ‘‘(C) will be dually or concurrently enrolled 

25 in the institution and a secondary school; 


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1 ‘‘(2) is legally authorized by the State in which 

2 it maintains a physical location to provide a pro3 gram of education beyond secondary education; 

4 ‘‘(3)(A) is accredited by a nationally recognized 

5 accrediting agency or association; or 

6 ‘‘(B) if not so accredited, is an institution that 

7 has been granted preaccreditation status by such an 

8 agency or association that has been recognized by the 

9 Secretary for the granting of preaccreditation status, 

10 and the Secretary has determined that there is satis11 factory assurance that the institution will meet the 

12 accreditation standards of such an agency or associa13 tion within a reasonable time; and 

14 ‘‘(4) provides— 

15 ‘‘(A) an educational program for which the 

16 institution awards a bachelor’s degree, graduate 

17 degree, or professional degree; 

18 ‘‘(B) not less than a 2-year educational pro19 gram which is acceptable for full credit towards 

20 a bachelor’s degree; or 

21 ‘‘(C) a non-degree program leading to a rec22 ognized educational credential that meets the def23 inition of an eligible program under section 

24 481(b). 

25 ‘‘(b) ADDITIONAL LIMITATIONS.— 


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1 ‘‘(1) PROPRIETARY INSTITUTIONS OF HIGHER

2 EDUCATION.— 

3 ‘‘(A) LENGTH OF EXISTENCE.—A propri4 etary institution shall not be considered an insti5 tution of higher education unless such institution 

6 has been in existence for at least 2 years. 

7 ‘‘(B) INSTITUTIONAL INELIGIBILITY FOR MI8 NORITY SERVING INSTITUTION PROGRAMS.—A 

9 proprietary institution shall not be considered 

10 an institution of higher education for the pur11 poses of any program under title III or V. 

12 ‘‘(2) POSTSECONDARY VOCATIONAL INSTITU13 TIONS.—A nonprofit or public institution that offers 

14 only non-degree programs described in subsection 

15 (a)(4)(C) shall not be considered an institution of 

16 higher education unless such institution has been in 

17 existence for at least 2 years. 

18 ‘‘(3) LIMITATIONS BASED ON MANAGEMENT.—An 

19 institution shall not be considered an institution of 

20 higher education if— 

21 ‘‘(A) the institution, or an affiliate of the 

22 institution that has the power, by contract or 

23 ownership interest, to direct or cause the direc24 tion of the management or policies of the institu25 tion, has filed for bankruptcy; or 


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1 ‘‘(B) the institution, the institution’s owner, 

2 or the institution’s chief executive officer has 

3 been convicted of, or has pled nolo contendere or 

4 guilty to, a crime involving the acquisition, use, 

5 or expenditure of Federal funds, or has been ju6 dicially determined to have committed a crime 

7 involving the acquisition, use, or expenditure in8 volving Federal funds. 

9 ‘‘(4) LIMITATION ON COURSE OF STUDY OR EN10 ROLLMENT.—An institution shall not be considered 

11 an institution of higher education if such institu12 tion— 

13 ‘‘(A) offers more than 50 percent of such in14 stitution’s courses by correspondence education, 

15 unless the institution is an institution that meets 

16 the definition in section 3(3)(C) of the Carl D. 

17 Perkins Career and Technical Education Act of 

18 2006; 

19 ‘‘(B) enrolls 50 percent or more of the insti20 tution’s students in correspondence education 

21 courses, unless the institution is an institution 

22 that meets the definition in section 3(3)(C) of 

23 such Act; 

24 ‘‘(C) has a student enrollment in which 

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1 cerated, except that the Secretary may waive the 

2 limitation contained in this subparagraph for an 

3 institution that provides a 2- or 4-year program 

4 of instruction (or both) for which the institution 

5 awards an associate’s degree or a postsecondary 

6 certificate, or a bachelor’s degree, respectively; or 

7 ‘‘(D) has a student enrollment in which 

8 more than 50 percent of the students either do 

9 not have a secondary school diploma or its recog10 nized equivalent, or do not meet the requirements 

11 of section 484(d), and does not provide a 2- or 

12 4-year program of instruction (or both) for 

13 which the institution awards an associate’s de14 gree or a bachelor’s degree, respectively, except 

15 that the Secretary may waive the limitation con16 tained in this subparagraph if an institution 

17 demonstrates to the satisfaction of the Secretary 

18 that the institution exceeds such limitation be19 cause the institution serves, through contracts 

20 with Federal, State, or local government agen21 cies, significant numbers of students who do not 

22 have a secondary school diploma or its recog23 nized equivalent or do not meet the requirements 

24 of section 484(d). 


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1 ‘‘(c) LIST OF ACCREDITING AGENCIES.—For purposes 

2 of this section, the Secretary shall publish a list of nation3 ally recognized accrediting agencies or associations that the 

4 Secretary determines, pursuant to subpart 2 of part H of 

5 title IV, to be reliable authority as to the quality of the 

6 education offered. 

7 ‘‘(d) CERTIFICATION.—The Secretary shall certify, for 

8 the purposes of participation in title IV, an institution’s 

9 qualification as an institution of higher education in ac10 cordance with the requirements of subpart 3 of part H of 

11 title IV. 

12 ‘‘(e) LOSS OF ELIGIBILITY.—An institution of higher 

13 education shall not be considered to meet the definition of 

14 an institution of higher education for the purposes of par15 ticipation in title IV if such institution is removed from 

16 eligibility for funds under title IV as a result of an action 

17 pursuant to part H of title IV. 

18 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in subsection 

19 (a)(2) relating to State authorization shall be construed 

20 to— 

21 ‘‘(1) impede or preempt State laws, regulations, 

22 or requirements on how States authorize out-of-state 

23 institutions of higher education; or 

24 ‘‘(2) limit, impede, or preclude a State’s ability 

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1 ment to permit an institution within such State to 

2 meet any other State’s authorization requirements for 

3 out-of-state institutions.’’. 

4 SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 

5 Part A of title I (20 U.S.C. 1001 et seq.) is further 

6 amended by striking section 102 (20 U.S.C. 1002) and in7 serting the following: 

8 ‘‘SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 

9 ‘‘(a) INSTITUTIONS OUTSIDE THE UNITED STATES.— 

10 ‘‘(1) IN GENERAL.—Only for purposes of part D 

11 or E of title IV, the term ‘institution of higher edu12 cation’ includes an institution outside the United 

13 States (referred to in this part as a ‘foreign institu14 tion’) that is comparable to an institution of higher 

15 education as defined in section 101 and has been ap16 proved by the Secretary for purposes of part D or E 

17 of title IV, consistent with the requirements of section 

18 452(d). 

19 ‘‘(2) QUALIFICATIONS.—Only for the purposes of 

20 students receiving aid under title IV, an institution 

21 of higher education may not qualify as a foreign in22 stitution under paragraph (1), unless such institu23 tion— 

24 ‘‘(A) is legally authorized to provide an 

25 educational program beyond secondary education 


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1 by the education ministry (or comparable agen2 cy) of the country in which the institution is lo3 cated; 

4 ‘‘(B) is not located in a State; 

5 ‘‘(C) except as provided with respect to clin6 ical training offered by the institution under 

7 600.55(h)(1), section 600.56(b), or section 

8 600.57(a)(2) of title 34, Code of Federal Regula9 tions (as in effect pursuant to subsection (b))— 

10 ‘‘(i) does not offer any portion of an 

11 educational program in the United States 

12 to students who are citizens of the United 

13 States; 

14 ‘‘(ii) has no written arrangements with 

15 an institution or organization located in 

16 the United States under which students en17 rolling at the foreign institution would take 

18 courses from an institution located in the 

19 United States; and 

20 ‘‘(iii) does not allow students to enroll 

21 in any course offered by the foreign institu22 tion in the United States, including re23 search, work, internship, externship, or spe24 cial studies within the United States, except 

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1 vidual student in the United States for not 

2 more than one academic year is permitted, 

3 if the research is conducted during the dis4 sertation phase of a doctoral program under 

5 the guidance of faculty and the research is 

6 performed at a facility in the United States; 

7 ‘‘(D) awards degrees, certificates, or other 

8 recognized educational credentials in accordance 

9 with section 600.54(e) of title 34, Code of Federal 

10 Regulations (as in effect pursuant to subsection 

11 (b)) that are officially recognized by the country 

12 in which the institution is located; and 

13 ‘‘(E) meets the applicable requirements of 

14 subsection (b). 

15 ‘‘(3) INSTITUTIONS WITH LOCATIONS IN AND

16 OUTSIDE THE UNITED STATES.—In a case of an insti17 tution of higher education consisting of two or more 

18 locations offering all or part of an educational pro19 gram that are directly or indirectly under common 

20 ownership and that enrolls students both within a 

21 State and outside the United States, and the number 

22 of students who would be eligible to receive funds 

23 under title IV attending locations of such institution 

24 outside the United States, is at least twice the number 

25 of students enrolled within a State— 


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1 ‘‘(A) the locations outside the United States 

2 shall apply to participate as one or more foreign 

3 institutions and shall meet the requirements of 

4 paragraph (1) of this definition, and the other 

5 requirements of this part; and 

6 ‘‘(B) the locations within a State shall be 

7 treated as an institution of higher education 

8 under section 101. 

9 ‘‘(b) TREATMENT OF CERTAIN REGULATIONS.— 

10 ‘‘(1) FORCE AND EFFECT.— 

11 ‘‘(A) IN GENERAL.—The provisions of title 

12 34, Code of Federal Regulations, referred to in 

13 subparagraph (B), as such provisions were in ef14 fect on the day before the date of the enactment 

15 of the PROSPER Act, shall have the force and 

16 effect of enacted law until changed by such law 

17 and are deemed to be incorporated in this sub18 section as though set forth fully in this sub19 section. 

20 ‘‘(B) APPLICABLE PROVISIONS.—The provi21 sions of title 34, Code of Federal Regulations, re22 ferred to in this subparagraph are the following: 

23 ‘‘(i) Subject to paragraph (2)(A), sec24 tion 600.41(e)(3). 


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1 ‘‘(ii) Subject to paragraph (2)(B), sec2 tion 600.52. 

3 ‘‘(iii) Subject to paragraph (2)(C), sec4 tion 600.54. 

5 ‘‘(iv) Subject to subparagraphs (D) 

6 and (E) of paragraph (2), section 600.55, 

7 except that paragraph (4) of subsection (f) 

8 of such section shall have no force or effect. 

9 ‘‘(v) Section 600.56. 

10 ‘‘(vi) Subject to paragraph (2)(F), sec11 tion 600.57. 

12 ‘‘(vii) Subject to subparagraphs (G) 

13 and (H) of paragraph (2), section 

14 668.23(h), except that clause (iii) of para15 graph (1) of such section shall have no force 

16 or effect. 

17 ‘‘(viii) Section 668.5. 

18 ‘‘(C) APPLICATION TO FEDERAL ONE

19 LOANS.—With respect to the provisions of title 

20 34, Code of Federal Regulations, referred to sub21 paragraph (B), as modified by paragraph (2) 

22 any reference to a loan made under part D of 

23 title IV shall also be treated as a reference to a 

24 loan made under part E of title IV. 


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1 ‘‘(2) MODIFICATIONS.—The following shall apply 

2 to the provisions of title 34, Code of Federal Regula3 tions, referred to in paragraph (1)(B): 

4 ‘‘(A) Notwithstanding section 600.41(e)(3) 

5 of title 34, Code of Federal Regulations (as in ef6 fect pursuant to paragraph (1)), if the basis for 

7 the loss of eligibility of a foreign graduate med8 ical school to participate in programs under title 

9 IV is one or more annual pass rates on the 

10 United States Medical Licensing Examination 

11 below the threshold required in subparagraph 

12 (D) the sole issue is whether the aggregate pass 

13 rate for the preceding calendar year fell below 

14 that threshold. For purposes of the preceding sen15 tence, in the case of a foreign graduate medical 

16 school that opted to have the Educational Com17 mission for Foreign Medical Graduates calculate 

18 and provide the pass rates directly to the Sec19 retary for the preceding calendar year as per20 mitted under section 600.55(d)(2) of title 34, 

21 Code of Federal Regulations (as in effect pursu22 ant to paragraph (1)), in lieu of the foreign 

23 graduate medical school providing pass rate data 

24 to the Secretary under section 600.55(d)(1)(iii) 

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1 fect pursuant to paragraph (1)), the Educational 

2 Commission for Foreign Medical Graduates’ cal3 culations of the school’s rates are conclusive; and 

4 the presiding official has no authority to con5 sider challenges to the computation of the rate or 

6 rates by the Educational Commission for For7 eign Medical Graduates. 

8 ‘‘(B) Notwithstanding section 600.52 of title 

9 34, Code of Federal Regulations (as in effect pur10 suant to paragraph (1)), in this Act, the term 

11 ‘foreign institution’ means an institution de12 scribed in subsection (a). 

13 ‘‘(C) Notwithstanding section 600.54(c) of 

14 title 34, Code of Federal Regulations (as in effect 

15 pursuant to paragraph (1)), to be eligible to par16 ticipate in programs under title IV, foreign in17 stitution may not enter into a written arrange18 ment under which an institution or organiza19 tions that is not eligible to participate in pro20 grams under title IV provides more than 25 per21 cent of the program of study for one or more of 

22 the eligible foreign institution’s programs. 

23 ‘‘(D) Notwithstanding section 

24 600.55(f)(1)(ii) of title 34, Code of Federal Regu25 lations (as in effect pursuant to paragraph (1)), 


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1 for a foreign graduate medical school outside of 

2 Canada, for Step 1, Step 2–CS, and Step 2–CK, 

3 or the successor examinations, of the United 

4 States Medical Licensing Examination adminis5 tered by the Educational Commission for For6 eign Medical Graduate, at least 75 percent of the 

7 school’s students and graduates who receive or 

8 have received title IV funds in order to attend 

9 that school, and who completed the final of these 

10 three steps of the examination in the year pre11 ceding the year for which any of the school’s stu12 dents seeks a loan under title IV shall have re13 ceived an aggregate passing score on the exam as 

14 a whole; or except as provided in section 

15 600.55(f)(2) of title 34, Code of Federal Regula16 tions (as in effect pursuant to paragraph (1)), 

17 for no more than two consecutive years, at least 

18 70 percent of the individuals who were students 

19 or graduates of the graduate medical school out20 side the United States or Canada (who receive or 

21 have received title IV funds in order to attend 

22 that school) taking the United States Medical Li23 censing Examination exams in the year pre24 ceding the year for which any of the school’s stu25 dents seeks a loan under title IV shall have reVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ceived an aggregate passing score on the exam as 

2 a whole. 

3 ‘‘(E) Notwithstanding 600.55(h)(2) of title 

4 34, Code of Federal Regulations (as in effect pur5 suant to paragraph (1)), not more than 25 per6 cent of the graduate medical educational pro7 gram offered to United States students, other 

8 than the clinical training portion of the pro9 gram, may be located outside of the country in 

10 which the main campus of the foreign graduate 

11 medical school is located. 

12 ‘‘(F) Notwithstanding section 600.57(a)(5) 

13 of title 34, Code of Federal Regulations (as in ef14 fect pursuant to paragraph (1)), a nursing 

15 school shall reimburse the Secretary for the cost 

16 of any loan defaults for current and former stu17 dents during the previous fiscal year. 

18 ‘‘(G) Notwithstanding section 

19 668.23(h)(1)(ii), of title 34, Code of Federal Reg20 ulations (as in effect pursuant to paragraph 

21 (1)), a foreign institution that received $500,000 

22 or more in funds under title IV during its most 

23 recently completed fiscal year shall submit, in 

24 English, for each most recently completed fiscal 

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1 nancial statements prepared in accordance with 

2 generally accepted accounting principles of the 

3 institution’s home country provided that such 

4 accounting principles are comparable to the 

5 International Financial Reporting Standards. 

6 ‘‘(H) Notwithstanding section 

7 668.23(h)(1)(ii), of title 34, Code of Federal Reg8 ulations (as in effect pursuant to paragraph 

9 (1)), only in a case in which the accounting 

10 principles of an institution’s home country are 

11 not comparable to International Financial Re12 porting Standards shall the institution be re13 quired to submit corresponding audited financial 

14 statements that meet the requirements of section 

15 668.23(d) of title 34, Code of Federal Regulations 

16 (as in effect pursuant to paragraph (1)). 

17 ‘‘(c) SPECIAL RULES.— 

18 ‘‘(1) IN GENERAL.—A foreign graduate medical 

19 school at which student test passage rates are below 

20 the minimum requirements set forth in subsection 

21 (b)(2)(D) for each of the two most recent calendar 

22 years for which data are available shall not be eligible 

23 to participate in programs under part D or E of title 

24 IV in the fiscal year subsequent to that consecutive 

25 two year period and such institution shall regain eliVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 gibility to participate in programs under such part 

2 only after demonstrating compliance with require3 ments under section 600.55 of title 34, Code of Fed4 eral Regulations (as in effect pursuant to subsection 

5 (b)) for one full calendar year subsequent to the fiscal 

6 year the institution became ineligible unless, within 

7 30 days of receiving notification from the Secretary 

8 of the loss of eligibility under this paragraph, the in9 stitution appeals the loss of its eligibility to the Sec10 retary. The Secretary shall issue a decision on any 

11 such appeal within 45 days after its submission. Such 

12 decision may permit the institution to continue to 

13 participate in programs under part D or E of title 

14 IV, if— 

15 ‘‘(A) the institution demonstrates to the sat16 isfaction of the Secretary that the test passage 

17 rates on which the Secretary has relied are not 

18 accurate, and that the recalculation of such rates 

19 would result in rates that exceed the required 

20 minimum for any of these two calendar years; or 

21 ‘‘(B) there are, in the judgement of the Sec22 retary, mitigating circumstances that would 

23 make the application of this paragraph inequi24 table. 


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1 ‘‘(2) STUDENT ELIGIBILITY.—If, pursuant to this 

2 subsection, a foreign graduate medical school loses eli3 gibility to participate in the programs under part D 

4 or E of title IV, then a student at such institution 

5 may, notwithstanding such loss of eligibility, continue 

6 to be eligible to receive a loan under such part while 

7 attending such institution for the academic year suc8 ceeding the academic year in which such loss of eligi9 bility occurred. 

10 ‘‘(3) TREATMENT OF CLINICAL TRAINING PRO11 GRAMS.— 

12 ‘‘(A) IN GENERAL.—Clinical training pro13 grams operated by a foreign graduate medical 

14 school with an accredited hospital or clinic in 

15 the United States or at an institution in Canada 

16 accredited by the Liaison Committee on Medical 

17 Education shall be deemed to be approved and 

18 shall not require the prior approval of the Sec19 retary. 

20 ‘‘(B) ON-SITE EVALUATIONS.—Any part of 

21 a clinical training program operated by a for22 eign graduate medical school located in a foreign 

23 country other than the country in which the 

24 main campus is located, in the United States, or 

25 at an institution in Canada accredited by the 


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1 Liaison Committee on Medical Education, shall 

2 not require an on-site evaluation or specific ap3 proval by the institution’s medical accrediting 

4 agency if the location is a teaching hospital ac5 credited by and located within a foreign country 

6 approved by the National Committee on Foreign 

7 Medical Education and Accreditation. 

8 ‘‘(d) FAILURE TO RELEASE INFORMATION.—An insti9 tution outside the United States that does not provide to 

10 the Secretary such information as may be required by this 

11 section shall be ineligible to participate in the loan program 

12 under part D or E of title IV. 

13 ‘‘(e) ONLINE EDUCATION.—Notwithstanding section 

14 481(b)(2), an eligible program described in section 600.54 

15 of title 34, Code of Federal Regulations (as in effect pursu16 ant to subsection (b)) may not offer more than 50 percent 

17 of courses through telecommunications.’’. 

18 SEC. 103. ADDITIONAL DEFINITIONS. 

19 (a) DIPLOMA MILL.—Section 103(5)(B) (20 U.S.C. 

20 1003(5)(B)) is amended by striking ‘‘section 102’’ and in21 serting ‘‘section 101 or 102’’. 

22 (b) CORRESPONDENCE EDUCATION.—Section 103(7) 

23 (20 U.S.C. 1003(7)) is amended to read as follows: 

24 ‘‘(7) CORRESPONDENCE EDUCATION.—The term 

25 ‘correspondence education’ means education that is 


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1 provided by an institution of higher education under 

2 which— 

3 ‘‘(A) the institution provides instructional 

4 materials (including examinations on the mate5 rials) by mail or electronic transmission to stu6 dents who are separated from the instructor; and 

7 ‘‘(B) interaction between the institution and 

8 the student is limited and the academic instruc9 tion by faculty is not regular and substantive, as 

10 assessed by the institution’s accrediting agency 

11 or association under section 496.’’. 

12 (c) EARLY CHILDHOOD EDUCATION PROGRAM.—Sec13 tion 103(8) (20 U.S.C. 1003(8)) is amended to read as fol14 lows: 

15 ‘‘(8) EARLY CHILDHOOD EDUCATION PRO16 GRAM.—The term ‘early childhood education pro17 gram’ means a program— 

18 ‘‘(A) that serves children of a range of ages 

19 from birth through age five that addresses the 

20 children’s cognitive (including language, early 

21 literacy, and early mathematics), social, emo22 tional, and physical development; and 

23 ‘‘(B) that is— 

24 ‘‘(i) a Head Start program or an 

25 Early Head Start program carried out 


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1 under the Head Start Act (42 U.S.C. 9831 

2 et seq.), including a migrant or seasonal 

3 Head Start program, an Indian Head 

4 Start program, or a Head Start program or 

5 an Early Head Start program that also re6 ceives State funding; 

7 ‘‘(ii) a State licensed or regulated child 

8 care program; 

9 ‘‘(iii) a State-funded prekindergarten 

10 or child care program; 

11 ‘‘(iv) a program authorized under sec12 tion 619 of the Individuals with Disabilities 

13 Education Act or part C of such Act; or 

14 ‘‘(v) a program operated by a local 

15 educational agency.’’. 

16 (d) NONPROFIT.—Section 103(13) (20 U.S.C. 

17 1003(13)) is amended to read as follows: 

18 ‘‘(13) NONPROFIT.— 

19 ‘‘(A) The term ‘nonprofit’, when used with 

20 respect to a school, agency, organization, or in21 stitution means a school, agency, organization, 

22 or institution owned and operated by one or 

23 more nonprofit corporations or associations, no 

24 part of the net earnings of which inures, or may 


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1 lawfully inure, to the benefit of any private 

2 shareholder or individual. 

3 ‘‘(B) The term ‘nonprofit’, when used with 

4 respect to foreign institution means— 

5 ‘‘(i) an institution that is owned and 

6 operated only by one or more nonprofit cor7 porations or associations; and 

8 ‘‘(ii)(I) if a recognized tax authority of 

9 the institution’s home country is recognized 

10 by the Secretary for purposes of making de11 terminations of an institution’s nonprofit 

12 status for purposes of title IV, the institu13 tion is determined by that tax authority to 

14 be a nonprofit educational institution; or 

15 ‘‘(II) if no recognized tax authority of 

16 the institution’s home country is recognized 

17 by the Secretary for purposes of making de18 terminations of an institution’s nonprofit 

19 status for purposes of title IV, the foreign 

20 institution demonstrates to the satisfaction 

21 of the Secretary that it is a nonprofit edu22 cational institution.’’. 

23 (e) COMPETENCY-BASED EDUCATION; COMPETENCY24 BASED EDUCATION PROGRAM.—Section 103 (20 U.S.C. 

25 1003) is amended by adding at the end the following: 


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1 ‘‘(25) COMPETENCY-BASED EDUCATION; COM2 PETENCY-BASED EDUCATION PROGRAM.— 

3 ‘‘(A) COMPETENCY-BASED EDUCATION.— 

4 Except as otherwise provided, the term ‘com5 petency-based education’ means education that— 

6 ‘‘(i) measures academic progress and 

7 attainment— 

8 ‘‘(I) by direct assessment of a stu9 dent’s level of mastery of competencies; 

10 ‘‘(II) by expressing a student’s 

11 level of mastery of competencies in 

12 terms of equivalent credit or clock 

13 hours; or 

14 ‘‘(III) by a combination of the 

15 methods described in subclauses (I) or 

16 (II) and credit or clock hours; and 

17 ‘‘(ii) provides the educational content, 

18 activities, and resources, including sub19 stantive instructional interaction, including 

20 by faculty, and regular support by the in21 stitution, necessary to enable students to 

22 learn or develop what is required to dem23 onstrate and attain mastery of such com24 petencies, as assessed by the accrediting 


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1 agency or association of the institution of 

2 higher education. 

3 ‘‘(B) COMPETENCY-BASED EDUCATION PRO4 GRAM.—Except as otherwise provided, the term 

5 ‘competency-based education program’ means a 

6 postsecondary program offered by an institution 

7 of higher education that— 

8 ‘‘(i) provides competency-based edu9 cation, which upon a student’s demonstra10 tion or mastery of a set of competencies 

11 identified and required by the institution, 

12 leads to or results in the award of a certifi13 cate, degree, or other recognized educational 

14 credential; 

15 ‘‘(ii) ensures title IV funds may be 

16 used only for learning that results from in17 struction provided, or overseen, by the insti18 tution, not for the portion of the program of 

19 which the student has demonstrated mastery 

20 prior to enrollment in the program or tests 

21 of learning that are not associated with 

22 educational activities overseen by the insti23 tution; and 

24 ‘‘(iii) is organized in such a manner 

25 that an institution can determine, based on 


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1 the method of measurement selected by the 

2 institution under subparagraph (A)(i), 

3 what constitutes a full-time, three-quarter 

4 time, half-time, and less than half-time 

5 workload for the purposes of awarding and 

6 administering assistance under title IV of 

7 this Act, or assistance provided under an8 other provision of Federal law to attend an 

9 institution of higher education. 

10 ‘‘(C) COMPETENCY DEFINED.—In this para11 graph, the term ‘competency’ means the knowl12 edge, skill, or ability demonstrated by a student 

13 in a subject area.’’. 

14 (f) PAY FOR SUCCESS INITIATIVE.—Section 103 (20 

15 U.S.C. 1003) is amended by adding at the end the following: 

16 ‘‘(26) PAY FOR SUCCESS INITIATIVE.—The term 

17 ‘pay for success initiative’ has the meaning given the 

18 term in section 8101 of the Elementary and Sec19 ondary Education Act of 1965 (20 U.S.C. 7801).’’. 

20 (g) EVIDENCE-BASED.—Section 103 (20 U.S.C. 1003) 

21 is amended by adding at the end the following: 

22 ‘‘(27) EVIDENCE-BASED.—The term ‘evidence23 based’ has the meaning given the term in section 

24 8101(21)(A) of the Elementary and Secondary Edu25 cation Act of 1965 (20 U.S.C. 7801(21)(A)), except 


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1 that such term shall also apply to institutions of 

2 higher education.’’. 

3 SEC. 104. REGULATORY RELIEF. 

4 (a) REGULATIONS REPEALED.— 

5 (1) REPEAL.—The following regulations (includ6 ing any supplement or revision to such regulations) 

7 are repealed and shall have no legal effect: 

8 (A) DEFINITION OF CREDIT HOUR.—The 

9 definition of the term ‘‘credit hour’’ in section 

10 600.2 of title 34, Code of Federal Regulations, as 

11 added by the final regulations published by the 

12 Department of Education in the Federal Register 

13 on October 29, 2010 (75 Fed. Reg. 66946). 

14 (B) GAINFUL EMPLOYMENT.—Sections 

15 600.10(c), 600.20(d), 668.401 through 668.415, 

16 668.6, and 668.7, of title 34, Code of Federal 

17 Regulations, as added or amended by the final 

18 regulations published by the Department of Edu19 cation in the Federal Register on October 31, 

20 2014 (79 Fed. Reg. 64889 et seq.). 

21 (C) BORROWER DEFENSE.—Sections 668.41, 

22 668.90, 668.93, 668.171, 668.175, 674.33, 

23 682.211, 682.402(d), 682.405, 682.410, 685.200, 

24 685.205, 685.206, 685.212(k), 685.214, 685.215, 

25 685.222, appendix A to subpart B of part 685, 


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1 685.300, 685.308, of title 34, Code of Federal 

2 Regulations, as added or amended by the final 

3 regulations published by the Department of Edu4 cation in the Federal Register on November 1, 

5 2016 (81 Fed. Reg. 75926 et seq.). 

6 (2) EFFECT OF REPEAL.—To the extent that reg7 ulations repealed— 

8 (A) by subparagraph (A) or subparagraph 

9 (B) of paragraph (1) amended regulations that 

10 were in effect on June 30, 2011, the provisions 

11 of the regulations that were in effect on June 30, 

12 2011, and were so amended are restored and re13 vived as if the regulations repealed by such sub14 paragraph had not taken effect; and 

15 (B) by paragraph (1)(C) amended regula16 tions that were in effect on October 31, 2016, the 

17 provisions of the regulations that were in effect 

18 on October 31, 2016, and were so amended are 

19 restored and revived as if the regulations re20 pealed by paragraph (1)(C) had not taken effect. 

21 (b) CERTAIN REGULATIONS AND OTHER ACTIONS

22 PROHIBITED.— 

23 (1) GAINFUL EMPLOYMENT.—The Secretary of 

24 Education shall not, on or after the date of enactment 

25 of this Act, promulgate or enforce any regulation or 


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1 rule with respect to the definition or application of 

2 the term ‘‘gainful employment’’ for any purpose 

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

4 1001 et seq.). 

5 (2) CREDIT HOUR.—The Secretary of Education 

6 shall not, on or after the date of enactment of this 

7 Act, promulgate or enforce any regulation or rule 

8 with respect to the definition of the term ‘‘credit 

9 hour’’ for any purpose under the Higher Education 

10 Act of 1965 (20 U.S.C. 1001 et seq.). 

11 (3) POSTSECONDARY INSTITUTION RATINGS SYS12 TEM.—The Secretary of Education shall not carry 

13 out, develop, refine, promulgate, publish, implement, 

14 administer, or enforce a postsecondary institution 

15 ratings system or any other performance system to 

16 rate institutions of higher education (as defined in 

17 section 101 or 102 of the Higher Education Act of 

18 1965 (20 U.S.C. 1001; 1002)). 

19 PART B—ADDITIONAL GENERAL PROVISIONS 

20 SEC. 111. FREE SPEECH PROTECTIONS. 

21 Part B of title I (20 U.S.C. 1011 et seq.) is amended 

22 by redesignating section 112 as section 112A and section 

23 112A, as so redesignated, is amended— 

24 (1) in subsection (a)— 


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1 (A) by redesignating paragraph (2) as 

2 paragraph (4); and 

3 (B) by inserting after paragraph (1) the fol4 lowing: 

5 ‘‘(2) It is the sense of Congress that— 

6 ‘‘(A) every individual should be free to profess, 

7 and to maintain, the opinion of such individual in 

8 matters of religion, and that professing or maintain9 ing such opinion should in no way diminish, enlarge, 

10 or affect the civil liberties or rights of such individual 

11 on the campus of an institution of higher education; 

12 and 

13 ‘‘(B) no public institution of higher education 

14 directly or indirectly receiving financial assistance 

15 under this Act should limit religious expression, free 

16 expression, or any other rights provided under the 

17 First Amendment. 

18 ‘‘(3) It is the sense of Congress that— 

19 ‘‘(A) free speech zones and restrictive speech 

20 codes are inherently at odds with the freedom of 

21 speech guaranteed by the First Amendment of the 

22 Constitution; and 

23 ‘‘(B) no public institution of higher education 

24 directly or indirectly receiving financial assistance 


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1 under this Act should restrict the speech of such insti2 tution’s students through such zones or codes.’’; 

3 (2) by redesignating subsections (b) and (c) as 

4 subsections (c) and (d), respectively; 

5 (3) by inserting after subsection (a), the fol6 lowing: 

7 ‘‘(b) DISCLOSURE OF FREE SPEECH POLICIES.— 

8 ‘‘(1) IN GENERAL.—No institution of higher edu9 cation shall be eligible to receive funds under this Act, 

10 including participation in any program under title 

11 IV, unless the institution certifies to the Secretary 

12 that the institution has annually disclosed to current 

13 and prospective students any policies held by the in14 stitutions related to protected speech on campus, in15 cluding policies limiting where and when such speech 

16 may occur, and the right to submit a complaint 

17 under paragraph (2) if the institution is not in com18 pliance with any policy disclosed under this para19 graph or is enforcing a policy related to protected 

20 speech that has not been disclosed by the institution 

21 under this paragraph. 

22 ‘‘(2) COMPLAINT ON SPEECH POLICIES.— 

23 ‘‘(A) DESIGNATION OF AN EMPLOYEE.—The 

24 Secretary shall designate an employee in the Of25 fice of Postsecondary Education of the DepartVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ment to receive complaints from students or stu2 dent organizations that believe an institution is 

3 not in compliance with any policy disclosed 

4 under paragraph (1) or is enforcing a policy re5 lated to protected speech that has not been dis6 closed by the institution under such paragraph. 

7 ‘‘(B) COMPLAINT.—A complaint submitted 

8 under subparagraph (A)— 

9 ‘‘(i) shall— 

10 ‘‘(I) include the provision of the 

11 institution’s policy the complainant 

12 believes the institution is not in com13 pliance with or how the institution is 

14 enforcing a policy related to protected 

15 speech that has not been disclosed 

16 under paragraph (1); and 

17 ‘‘(II) be filed not later than 7 

18 days of the complainant’s denial of a 

19 right to speak; and 

20 ‘‘(ii) may affirmatively assert that the 

21 violation described in clause (i)(I) is a vio22 lation of the complainant’s constitutional 

23 rights. 

24 ‘‘(C) SECRETARIAL REQUIREMENTS.— 

25 ‘‘(i) REVIEW.— 


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1 ‘‘(I) IN GENERAL.—Not later than 

2 7 days after the receipt of the com3 plaint, the Secretary shall review the 

4 complaint and request a response to 

5 the complaint from the institution. 

6 ‘‘(II) RESPONSE OF SEC7 RETARY.—Not later than 10 days after 

8 the receipt of the complaint, the Sec9 retary shall make a decision with re10 spect to such complaint, without re11 gard to whether the institution pro12 vides a response to such complaint. 

13 ‘‘(ii) DETERMINATION THAT INSTITU14 TION FAILED TO COMPLY.—If, upon the re15 view required under clause (i), the Sec16 retary determines that the institution is not 

17 in compliance with the institution’s policy 

18 disclosed under paragraph (1), or the insti19 tution is enforcing a policy that was not 

20 disclosed under paragraph (1), the Sec21 retary shall— 

22 ‘‘(I)(aa) if the Secretary deter23 mines that the institution was not in 

24 compliance with a disclosed policy, re25 quire the institution to comply with 


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1 the disclosed policy and provide the 

2 complainant an opportunity to speak 

3 as any other speaker would be per4 mitted to speak; or 

5 ‘‘(bb) if the Secretary determines 

6 that the institution was enforcing an 

7 undisclosed policy, require the institu8 tion to immediately comply with dis9 closure requirement under paragraph 

10 (1) and to allow the complainant to 

11 speak as if such policy were not held 

12 by the institution; and 

13 ‘‘(II) require the institution to 

14 post the decision of the Secretary on 

15 the website of the institution, except in 

16 the case in which the complainant re17 quests that the decision not be shared. 

18 ‘‘(iii) REFERRAL.—If the Secretary be19 lieves the denial of the right to speak may 

20 be a violation of the Constitutional rights of 

21 the complainant, the Secretary shall refer 

22 the complaint to the Department of Justice. 

23 ‘‘(D) LIMITATIONS.— 

24 ‘‘(i) INSTITUTION’S RELIGIOUS BE25 LIEFS OR MISSION.—The Secretary shall 


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1 defer to the institution’s religious beliefs or 

2 mission that the institution describes in its 

3 response to the complaint as applicable to 

4 the complaint. 

5 ‘‘(ii) PROHIBITION ON REGULATIONS

6 OR GUIDANCE.—The Secretary— 

7 ‘‘(I) shall not promulgate any reg8 ulations with respect to this para9 graph; and 

10 ‘‘(II) may only issue guidance 

11 that explains or clarifies the process for 

12 filing or reviewing a complaint under 

13 this paragraph.’’; and 

14 (4) in subsection (d), as redesignated by para15 graph (2)— 

16 (A) in paragraph (2), by inserting ‘‘(in17 cluding such joining, assembling, and residing 

18 for religious purposes)’’ after ‘‘Constitution’’; 

19 and 

20 (B) in paragraph (3), by inserting ‘‘(in21 cluding speech relating to religion)’’ after ‘‘Con22 stitution’’. 


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1 SEC. 112. SENSE OF CONGRESS ON INCLUSION AND RE2 SPECT. 

3 Part B of title I (20 U.S.C. 1011 et seq.) is further 

4 amended by inserting after section 112A (as redesignated 

5 by section 111) the following: 

6 ‘‘SEC. 112B. SENSE OF CONGRESS ON INCLUSION AND RE7 SPECT. 

8 ‘‘It is the sense of Congress that— 

9 ‘‘(1) harassment and violence targeted at stu10 dents because of their race, color, religion, sex, or na11 tional origin as listed in section 703 of the Civil 

12 Rights Act of 1964 (42 U.S.C. 2000e–2) should be 

13 condemned; 

14 ‘‘(2) institutions of higher education and law-en15 forcement personnel should be commended for their ef16 forts to combat violence, extremism, and racism, and 

17 to protect all members of the community from harm; 

18 and 

19 ‘‘(3) Congress is committed to supporting insti20 tutions of higher education in creating safe, inclusive, 

21 and respectful learning environments that fully re22 spect community members from all backgrounds.’’. 

23 SEC. 113. NATIONAL ADVISORY COMMITTEE ON INSTITU24 TIONAL QUALITY AND INTEGRITY. 

25 Section 114 (20 U.S.C. 1011c) is amended— 


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1 (1) by striking ‘‘section 102’’ each place it ap2 pears and inserting ‘‘section 101’’; 

3 (2) in subsection (b)— 

4 (A) in paragraph (3), by striking ‘‘Except 

5 as provided in paragraph (5), the term’’ and in6 serting ‘‘The term’’; 

7 (B) by striking paragraph (5) and inserting 

8 the following: 

9 ‘‘(5) SECRETARIAL APPOINTEES.—The Secretary 

10 may remove any member who was appointed under 

11 paragraph (1)(A) by a predecessor of the Secretary 

12 and may fill the vacancy created by such removal in 

13 accordance with paragraphs (3) and (4).’’. 

14 (3) in subsection (c)— 

15 (A) in paragraph (2), by adding ‘‘and’’ at 

16 the end; 

17 (B) in paragraph (3), by striking the semi18 colon at the end and inserting a period; and 

19 (C) by striking paragraphs (4) through (6); 

20 (4) in subsection (e)(2)(D) by striking ‘‘, includ21 ing any additional functions established by the Sec22 retary through regulation’’; and 

23 (5) in subsection (f), by striking ‘‘September 30, 

24 2017’’ and inserting ‘‘September 30, 2024’’. 


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1 SEC. 114. REPEAL OF CERTAIN REPORTING REQUIRE2 MENTS. 

3 (a) REPEALS.—The following provisions of the Higher 

4 Education Act of 1965 (20 U.S.C. 1001 et seq.) are repealed: 

5 (1) Section 117 (20 U.S.C. 1011f). 

6 (2) Section 119 (20 U.S.C. 1011h). 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 118 is redesignated as section 117. 

9 (2) Sections 120, 121, 122, and 123 are redesig10 nated as sections 118, 119, 120, and 121, respectively. 

11 (3) Section 485(f)(1)(H) (20 U.S.C. 

12 1092(f)(1)(H)) is amended by striking ‘‘section 120’’ 

13 and inserting ‘‘section 118’’. 

14 SEC. 115. PROGRAMS ON DRUG AND ALCOHOL ABUSE PRE15 VENTION. 

16 Section 118 (as so redesignated) is amended to read 

17 as follows: 

18 ‘‘SEC. 118. OPIOID MISUSE AND SUBSTANCE ABUSE PRE19 VENTION PROGRAM. 

20 ‘‘(a) REQUIRED PROGRAMS.—Each institution of 

21 higher education participating in any program under this 

22 Act shall adopt and implement an evidence-based program 

23 to prevent substance abuse by students and employees that, 

24 at a minimum, includes the annual distribution to each 

25 student and employee of— 


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1 ‘‘(1) institutional standards of conduct and sanc2 tions that clearly prohibit and address the unlawful 

3 possession, use, or distribution of illicit drugs and al4 cohol by students and employees; and 

5 ‘‘(2) the description of any drug or alcohol coun6 seling, treatment, rehabilitation, or re-entry programs 

7 that are available to students or employees, including 

8 information on opioid abuse prevention, harm reduc9 tion, and recovery. 

10 ‘‘(b) INFORMATION AVAILABILITY.—Each institution 

11 of higher education described in subsection (a) shall, upon 

12 request, make available to the Secretary and to the public 

13 a copy of the institutional standards described under sub14 section (a)(1) and information regarding any programs de15 scribed in subsection (a)(2). 

16 ‘‘(c) BEST PRACTICES.—The Secretary, in consulta17 tion with the Secretary of Health and Human Services and 

18 outside experts in the field of substance use prevention and 

19 recovery support, shall— 

20 ‘‘(1) share best practices for institutions of high21 er education to— 

22 ‘‘(A) address and prevent substance use; and 

23 ‘‘(B) support students in substance use re24 covery; and 


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1 ‘‘(2) if requested by an institution of higher edu2 cation, provide technical assistance to such institution 

3 to implement a practice under paragraph (1).’’. 

4 SEC. 116. CAMPUS ACCESS FOR RELIGIOUS GROUPS. 

5 Part B of title I (20 U.S.C. 1011 et seq.) (as amended 

6 by sections 111 through 115 of this part) is amended by 

7 adding at the end the following: 

8 ‘‘SEC. 122. CAMPUS ACCESS FOR RELIGIOUS GROUPS. 

9 ‘‘None of the funds made available under this Act may 

10 be provided to any public institution of higher education 

11 that denies to a religious student organization any right, 

12 benefit, or privilege that is generally afforded to other stu13 dent organizations at the institution (including full access 

14 to the facilities of the institution and official recognition 

15 of the organization by the institution) because of the reli16 gious beliefs, practices, speech, leadership and membership 

17 standards, or standards of conduct of the religious student 

18 organization.’’. 

19 SEC. 117. SECRETARIAL PROHIBITIONS. 

20 Part B of title I (20 U.S.C. 1011 et seq.) (as amended 

21 by sections 111 through 116 of this part) is amended by 

22 adding at the end the following: 

23 ‘‘SEC. 123. SECRETARIAL PROHIBITIONS. 

24 ‘‘(a) IN GENERAL.—Nothing in this Act shall be con25 strued to authorize or permit the Secretary to promulgate 


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1 any rule or regulation that exceeds the scope of the explicit 

2 authority granted to the Secretary under this Act. 

3 ‘‘(b) DEFINITIONS.—The Secretary shall not define 

4 any term that is used in this Act in a manner that is incon5 sistent with the scope of this Act, including through regula6 tion or guidance. 

7 ‘‘(c) REQUIREMENTS.—The Secretary shall not im8 pose, on an institution or State as a condition of participa9 tion in any program under this Act, any requirement that 

10 exceeds the scope of the requirements explicitly set forth in 

11 this Act for such program.’’. 

12 SEC. 118. ENSURING EQUAL TREATMENT BY GOVERN13 MENTAL ENTITIES. 

14 Part B of title I (20 U.S.C. 1011 et seq.) (as amended 

15 by sections 111 through 117 of this part) is further amended 

16 by adding at the end the following: 

17 ‘‘SEC. 124. ENSURING EQUAL TREATMENT BY GOVERN18 MENTAL ENTITIES. 

19 ‘‘(a) IN GENERAL.—Notwithstanding any other provi20 sion of law, no government entity shall take any adverse 

21 action against an institution of higher education that re22 ceives funding under title IV, if such adverse action— 

23 ‘‘(1)(A) is being taken by a government entity 

24 that— 


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1 ‘‘(i) is a department, agency, or instrumen2 tality of the Federal Government; or 

3 ‘‘(ii) receives Federal funds; or 

4 ‘‘(B) would affect commerce with foreign nations, 

5 among the several States, or with Indian Tribes; and 

6 ‘‘(2) has the effect of prohibiting or penalizing 

7 the institution for acts or omissions by the institution 

8 that are in furtherance of its religious mission or are 

9 related to the religious affiliation of the institution. 

10 ‘‘(b) ASSERTION BY INSTITUTION.—An actual or 

11 threatened violation of subsection (a) may be asserted by 

12 an institution of higher education that receives funding 

13 under title IV as a claim or defense in a proceeding before 

14 any court. The court shall grant any appropriate equitable 

15 relief, including injunctive or declaratory relief. 

16 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec17 tion shall be construed to alter or amend— 

18 ‘‘(1) title VI of the Civil Rights Act of 1964 (42 

19 U.S.C. 2000d et seq.); 

20 ‘‘(2) section 182 of the Elementary and Sec21 ondary Education Amendments Act of 1966 (42 

22 U.S.C. 2000d–5); or 

23 ‘‘(3) section 2 of the Elementary and Secondary 

24 Education Amendments Act of 1969 (42 U.S.C. 

25 2000d–6) 


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1 ‘‘(d) DEFINITIONS.—In this section: 

2 ‘‘(1) ADVERSE ACTION.—The term ‘adverse ac3 tion’ includes, with respect to an institution of higher 

4 education or the past, current, or prospective students 

5 of such institution— 

6 ‘‘(A) the denial or threat of denial of fund7 ing, including grants, scholarships, or loans; 

8 ‘‘(B) the denial or threat of denial of access 

9 to facilities or programs; 

10 ‘‘(C) the withholding or threat of with11 holding of any licenses, permits, certifications, 

12 accreditations, contracts, cooperative agreements, 

13 grants, guarantees, tax-exempt status, or exemp14 tions; or 

15 ‘‘(D) any other penalty or denial, or threat 

16 of such other penalty or denial, of an otherwise 

17 available benefit. 

18 ‘‘(2) GOVERNMENT ENTITY.—The term ‘govern19 ment entity’ means— 

20 ‘‘(A) any department, agency, or instru21 mentality of the Federal Government; 

22 ‘‘(B) a State or political subdivision of a 

23 State, or any agency or instrumentality thereof; 

24 and 


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1 ‘‘(C) any interstate or other inter-govern2 mental entity. 

3 ‘‘(3) INSTITUTION OF HIGHER EDUCATION.—The 

4 term ‘institution of higher education’ has the meaning 

5 given the term in section 101 or 102. 

6 ‘‘(4) RELIGIOUS MISSION.—The term ‘religious 

7 mission’ includes an institution of higher education’s 

8 religious tenets, beliefs, or teachings, and any policies 

9 or decisions related to such tenets, beliefs, or teachings 

10 (including any policies or decisions concerning hous11 ing, employment, curriculum, self-governance, or stu12 dent admission, continuing enrollment, or gradua13 tion).’’. 

14 SEC. 119. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS. 

15 Part B of title I (20 U.S.C. 1011 et seq.) (as amended 

16 by sections 111 through 118 of this part) is further amended 

17 by adding at the end the following: 

18 ‘‘SEC. 125. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS. 

19 ‘‘(a) NON-RETALIATION AGAINST SINGLE-SEX STU20 DENT ORGANIZATIONS.—An institution of higher education 

21 that has a policy allowing for the official recognition of a 

22 single-sex social student organization may not— 

23 ‘‘(1) require or coerce such a recognized organi24 zation to admit as a member an individual who does 


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1 not meet the organization’s criteria for single-sex sta2 tus; 

3 ‘‘(2) require or coerce such a recognized organi4 zation to permit an individual described in para5 graph (1) to participate in the activities of the orga6 nization; 

7 ‘‘(3) take any adverse action against a student 

8 on the basis of the student’s membership in such rec9 ognized organization; or 

10 ‘‘(4) impose any requirement or restriction, in11 cluding on timing for accepting new members or 

12 membership recruitment, on such a recognized organi13 zation (or its current or prospective members) based 

14 on the organization’s single-sex status or its criteria 

15 for defining its single-sex status. 

16 ‘‘(b) CONSTRUCTION.—Nothing in this Act shall be 

17 construed— 

18 ‘‘(1) to create any enforceable right— 

19 ‘‘(A) by a local, college, or university stu20 dent organization against a national student or21 ganization; or 

22 ‘‘(B) by a national student organization 

23 against any local, college, or university student 

24 organization; 


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1 ‘‘(2) to require an institution of higher education 

2 to have a policy allowing for the official recognition 

3 of a single-sex social student organization; or 

4 ‘‘(3) to prohibit an institution of higher edu5 cation from taking an adverse action against a mem6 ber of a single-sex social student organization for rea7 sons other than on the basis of such student’s member8 ship in such organization, such as academic or non9 academic misconduct. 

10 ‘‘(c) ADVERSE ACTION.—For the purposes of this sec11 tion, the term ‘adverse action’ includes the following: 

12 ‘‘(1) Expulsion, suspension, probation, censure, 

13 condemnation, reprimand, or any other disciplinary, 

14 coercive, or adverse action taken by an institution of 

15 higher education or administrative unit of such an 

16 institution. 

17 ‘‘(2) An oral or written warning made by an of18 ficial of an institution of higher education acting in 

19 the official’s official capacity. 

20 ‘‘(3) Denying participation in any education 

21 program or activity. 

22 ‘‘(4) Withholding, in whole or in part, any fi23 nancial assistance (including scholarships and on24 campus employment), or denying the opportunity to 


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1 apply for financial assistance, a scholarship, or on2 campus employment. 

3 ‘‘(5) Denying or restricting access to on-campus 

4 housing. 

5 ‘‘(6) Denying any certification or letter of rec6 ommendation that may be required by a student’s 

7 current or future employer, a government agency, a 

8 licensing board, or an educational institution or 

9 scholarship program to which the student seeks to 

10 apply. 

11 ‘‘(7) Denying participation in any sports team, 

12 club, or other student organization, or denying any 

13 leadership position in any sports team, club, or other 

14 student organization.’’. 

15 SEC. 120. DEPARTMENT STAFF. 

16 Part B of title I (20 U.S.C. 1011 et seq.) (as amended 

17 by sections 111 through 119 of this part) is further amended 

18 by adding at the end the following: 

19 ‘‘SEC. 126. DEPARTMENT STAFF. 

20 ‘‘The Secretary shall— 

21 ‘‘(1) not later than 60 days after the date of en22 actment of the PROSPER Act, identify the number of 

23 Department full-time equivalent employees who 

24 worked on or administered each education program or 

25 project authorized under this Act, as such program or 


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1 project was in effect on the day before such date, and 

2 publish such information on the Department’s 

3 website; 

4 ‘‘(2) not later than 60 days after such date, iden5 tify the number of full-time equivalent employees who 

6 worked on or administered each program or project 

7 authorized under this Act, as such program or project 

8 was in effect on the day before such date, that has 

9 been eliminated or consolidated since such date; 

10 ‘‘(3) not later than 1 year after such date, reduce 

11 the workforce of the Department by the number of 

12 full-time equivalent employees the Department identi13 fied under paragraph (2); and 

14 ‘‘(4) not later than 1 year after such date, report 

15 to the Congress on— 

16 ‘‘(A) the number of full-time equivalent em17 ployees associated with each program or project 

18 authorized under this Act and administered by 

19 the Department; 

20 ‘‘(B) the number of full-time equivalent em21 ployees who were determined to be associated 

22 with eliminated or consolidated programs or 

23 projects described in paragraph (2); 


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1 ‘‘(C) how the Secretary has reduced the 

2 number of full-time equivalent employees as de3 scribed in paragraph (3); 

4 ‘‘(D) the average salary of the full-time 

5 equivalent employees described in subparagraph 

6 (B) whose positions were eliminated; and 

7 ‘‘(E) the average salary of the full-time 

8 equivalent employees who work on or administer 

9 a program or project authorized by the Depart10 ment under this Act, disaggregated by employee 

11 function within each such program or project.’’. 

12 SEC. 120A. DEPARTMENT OF HOMELAND SECURITY RE13 CRUITING ON CAMPUS. 

14 Part B of title I (20 U.S.C. 1011 et seq.) (as amended 

15 by sections 111 through 120 of this part) is further amended 

16 by adding at the end the following: 

17 ‘‘SEC. 127. DEPARTMENT OF HOMELAND SECURITY RE18 CRUITING ON CAMPUS. 

19 ‘‘None of the funds made available under this Act may 

20 be provided to any institution of higher education that has 

21 in effect a policy or practice that either prohibits, or in 

22 effect prevents, the Secretary of Homeland Security from 

23 gaining access to campuses or access to students (who are 

24 17 years of age or older) on campuses, for purposes of De25 partment of Homeland Security recruiting in a manner 


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1 that is at least equal in quality and scope to the access to 

2 campuses and to students that is provided to any other em3 ployer.’’. 

4 PART C—COST OF HIGHER EDUCATION 

5 SEC. 121. COLLEGE DASHBOARD WEBSITE. 

6 (a) ESTABLISHMENT.—Section 132 (20 U.S.C. 1015a) 

7 is amended— 

8 (1) in subsection (a)— 

9 (A) by striking paragraph (1) and inserting 

10 the following new paragraph: 

11 ‘‘(1) COLLEGE DASHBOARD WEBSITE.—The term 

12 ‘College Dashboard website’ means the College Dash13 board website required under subsection (d).’’. 

14 (B) in paragraph (2), by striking ‘‘first15 time,’’; 

16 (C) in paragraph (3), in the matter pre17 ceding subparagraph (A), by striking ‘‘first18 time,’’; and 

19 (D) in paragraph (4), by striking ‘‘first20 time,’’; 

21 (2) in subsection (b)— 

22 (A) in paragraph (1), by striking ‘‘first23 time,’’; and 

24 (B) in paragraph (2), by striking ‘‘first25 time,’’; 


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1 (3) by striking subsections (c) through (g), (j), 

2 and (l); 

3 (4) by redesignating subsections (h), (i), and (k) 

4 as subsections (c), (d), and (e), respectively; and 

5 (5) by striking subsection (d) (as so redesig6 nated) and inserting the following new subsection: 

7 ‘‘(d) CONSUMER INFORMATION.— 

8 ‘‘(1) AVAILABILITY OF TITLE IV INSTITUTION IN9 FORMATION.—The Secretary shall develop and make 

10 publicly available a website to be known as the ‘Col11 lege Dashboard website’ in accordance with this sec12 tion and prominently display on such website, in 

13 simple, understandable, and unbiased terms for the 

14 most recent academic year for which satisfactory data 

15 are available, the following information with respect 

16 to each institution of higher education that partici17 pates in a program under title IV: 

18 ‘‘(A) A link to the website of the institution. 

19 ‘‘(B) An identification of the type of insti20 tution as one of the following: 

21 ‘‘(i) A four-year public institution of 

22 higher education. 

23 ‘‘(ii) A four-year private, nonprofit in24 stitution of higher education. 


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1 ‘‘(iii) A four-year private, proprietary 

2 institution of higher education. 

3 ‘‘(iv) A two-year public institution of 

4 higher education. 

5 ‘‘(v) A two-year private, nonprofit in6 stitution of higher education. 

7 ‘‘(vi) A two-year private, proprietary 

8 institution of higher education. 

9 ‘‘(vii) A less than two-year public in10 stitution of higher education. 

11 ‘‘(viii) A less than two-year private, 

12 nonprofit institution of higher education. 

13 ‘‘(ix) A less than two-year private, pro14 prietary institution of higher education. 

15 ‘‘(C) The number of students enrolled at the 

16 institution— 

17 ‘‘(i) as undergraduate students, if ap18 plicable; and 

19 ‘‘(ii) as graduate students, if applica20 ble. 

21 ‘‘(D) The student-faculty ratio. 

22 ‘‘(E) The percentage of degree-seeking or 

23 certificate-seeking undergraduate students en24 rolled at the institution who obtain a degree or 

25 certificate within— 


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1 ‘‘(i) 100 percent of the normal time for 

2 completion of, or graduation from, the pro3 gram in which the student is enrolled; 

4 ‘‘(ii) 150 percent of the normal time 

5 for completion of, or graduation from, the 

6 program in which the student is enrolled; 

7 ‘‘(iii) 200 percent of the normal time 

8 for completion of, or graduation from, the 

9 program in which the student is enrolled; 

10 and 

11 ‘‘(iv) 300 percent of the normal time 

12 for completion of, or graduation from, the 

13 program in which the student is enrolled, 

14 for institutions at which the highest degree 

15 offered is predominantly an associate’s de16 gree. 

17 ‘‘(F)(i) The average net price per year for 

18 undergraduate students enrolled at the institu19 tion who received Federal student financial aid 

20 under title IV based on dependency status and 

21 an income category selected by the user of the 

22 College Dashboard website from a list containing 

23 the following income categories: 

24 ‘‘(I) $0 to $30,000. 

25 ‘‘(II) $30,001 to $48,000. 


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1 ‘‘(III) $48,001 to $75,000. 

2 ‘‘(IV) $75,001 to $110,000. 

3 ‘‘(V) $110, 001 to $150,000. 

4 ‘‘(VI) Over $150,000. 

5 ‘‘(ii) A link to the net price calculator for 

6 such institution. 

7 ‘‘(G) The percentage of undergraduate and 

8 graduate students who obtained a certificate or 

9 degree from the institution who borrowed Federal 

10 student loans— 

11 ‘‘(i) set forth separately for each edu12 cational program offered by the institution; 

13 and 

14 ‘‘(ii) made available in a format that 

15 allows a user of the College Dashboard 

16 website to view such percentage by selecting 

17 from a list of such educational programs. 

18 ‘‘(H) The average Federal student loan debt 

19 incurred by a student who obtained a certificate 

20 or degree in an educational program from the 

21 institution and who borrowed Federal student 

22 loans in the course of obtaining such certificate 

23 or degree— 


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1 ‘‘(i) set forth separately for each edu2 cational program offered by the institution; 

3 and 

4 ‘‘(ii) made available in a format that 

5 allows a user of the College Dashboard 

6 website to view such student loan debt infor7 mation by selecting from a list of such edu8 cational programs. 

9 ‘‘(I) The median earnings of students who 

10 obtained a certificate or degree in an educational 

11 program from the institution and who received 

12 Federal student financial aid under title IV in 

13 the course of obtaining such certificate or de14 gree— 

15 ‘‘(i) in the fifth and tenth years fol16 lowing the year in which the students ob17 tained such certificate or degree; 

18 ‘‘(ii) set forth separately by edu19 cational program; and 

20 ‘‘(iii) made available in a format that 

21 allows a user of the College Dashboard 

22 website to view such median earnings infor23 mation by selecting from a list of such edu24 cational programs. 


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1 ‘‘(J) A link to the webpage of the institution 

2 containing campus safety data with respect to 

3 such institution. 

4 ‘‘(2) ADDITIONAL INFORMATION.—The Secretary 

5 shall publish on websites that are linked to through 

6 the College Dashboard website, for the most recent 

7 academic year for which satisfactory data is avail8 able, the following information with respect to each 

9 institution of higher education that participates in a 

10 program under title IV: 

11 ‘‘(A) ENROLLMENT.—The following enroll12 ment information: 

13 ‘‘(i) The percentages of male and fe14 male undergraduate students enrolled at the 

15 institution. 

16 ‘‘(ii) The percentages of undergraduate 

17 students enrolled at the institution— 

18 ‘‘(I) full-time; and 

19 ‘‘(II) less than full-time. 

20 ‘‘(iii) In the case of an institution 

21 other than an institution that provides all 

22 courses and programs through online edu23 cation, of the undergraduate students en24 rolled at the institution— 


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1 ‘‘(I) the percentage of such stu2 dents who are residents of the State in 

3 which the institution is located; 

4 ‘‘(II) the percentage of such stu5 dents who are not residents of such 

6 State; and 

7 ‘‘(III) the percentage of such stu8 dents who are international students. 

9 ‘‘(iv) The percentages of undergraduate 

10 students enrolled at the institution, 

11 disaggregated by— 

12 ‘‘(I) race and ethnic background; 

13 ‘‘(II) classification as a student 

14 with a disability; 

15 ‘‘(III) recipients of a Federal Pell 

16 Grant; 

17 ‘‘(IV) recipients of assistance 

18 under a tuition assistance program 

19 conducted by the Department of De20 fense under section 1784a or 2007 of 

21 title 10, United States Code, or other 

22 authorities available to the Department 

23 of Defense or veterans’ education bene24 fits (as defined in section 480); and 


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1 ‘‘(V) recipients of a Federal stu2 dent loan. 

3 ‘‘(B) COMPLETION.—The information re4 quired under paragraph (1)(E), disaggregated 

5 by— 

6 ‘‘(i) recipients of a Federal Pell Grant; 

7 ‘‘(ii) race and ethnic background; 

8 ‘‘(iii) classification as a student with a 

9 disability; 

10 ‘‘(iv) recipients of assistance under a 

11 tuition assistance program conducted by the 

12 Department of Defense under section 1784a 

13 or 2007 of title 10, United States Code, or 

14 other authorities available to the Depart15 ment of Defense or veterans’ education bene16 fits (as defined in section 480); and 

17 ‘‘(v) recipients of a Federal student 

18 loan. 

19 ‘‘(C) COSTS.—The following cost informa20 tion: 

21 ‘‘(i) The cost of attendance for full-time 

22 undergraduate students enrolled in the in23 stitution who live on campus. 


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1 ‘‘(ii) The cost of attendance for full2 time undergraduate students enrolled in the 

3 institution who live off campus. 

4 ‘‘(iii) The cost of tuition and fees for 

5 full-time undergraduate students enrolled in 

6 the institution. 

7 ‘‘(iv) The cost of tuition and fees per 

8 credit hour or credit hour equivalency for 

9 undergraduate students enrolled in the in10 stitution less than full time. 

11 ‘‘(v) In the case of a public institution 

12 of higher education (other than an institu13 tion described in clause (vi)) and notwith14 standing subsection (b)(1), the costs de15 scribed in clauses (i) and (ii) for— 

16 ‘‘(I) full-time students enrolled in 

17 the institution who are residents of the 

18 State in which the institution is lo19 cated; and 

20 ‘‘(II) full-time students enrolled in 

21 the institution who are not residents of 

22 such State. 

23 ‘‘(vi) In the case of a public institution 

24 of higher education that offers different tui25 tion rates for students who are residents of 


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1 a geographic subdivision smaller than a 

2 State and students not located in such geo3 graphic subdivision and notwithstanding 

4 subsection (b)(1), the costs described in 

5 clauses (i) and (ii) for— 

6 ‘‘(I) full-time students enrolled at 

7 the institution who are residents of 

8 such geographic subdivision; 

9 ‘‘(II) full-time students enrolled at 

10 the institution who are residents of the 

11 State in which the institution is lo12 cated but not residents of such geo13 graphic subdivision; and 

14 ‘‘(III) full-time students enrolled 

15 at the institution who are not residents 

16 of such State. 

17 ‘‘(D) FINANCIAL AID.—The following infor18 mation with respect to financial aid: 

19 ‘‘(i) The average annual grant amount 

20 (including Federal, State, and institutional 

21 aid) awarded to an undergraduate student 

22 enrolled at the institution who receives 

23 grant aid, and the percentage of under24 graduate students receiving such aid. 


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1 ‘‘(ii) The percentage of undergraduate 

2 students enrolled at the institution receiving 

3 Federal, State, and institutional grants, 

4 student loans, and any other type of student 

5 financial assistance known by the institu6 tion, provided publicly or through the insti7 tution, such as Federal work-study funds. 

8 ‘‘(iii) The loan repayment rate (as de9 fined in section 481B) for each educational 

10 program at such institution. 

11 ‘‘(3) OTHER DATA MATTERS.— 

12 ‘‘(A) COMPLETION DATA.—The Commis13 sioner of Education Statistics shall ensure that 

14 the information required under paragraph 

15 (1)(E) includes information with respect to all 

16 students at an institution, in a manner that ac17 curately reflects the actual length of the program, 

18 including students other than first-time, full-time 

19 students and students who transfer to another 

20 institution, in a manner that the Commissioner 

21 considers appropriate. 

22 ‘‘(B) ADJUSTMENT OF INCOME CAT23 EGORIES.—The Secretary may annually adjust 

24 the range of each of the income categories de25 scribed in paragraph (1)(F) to account for a 


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1 change in the Consumer Price Index for All 

2 Urban Consumers as determined by the Bureau 

3 of Labor Statistics if the Secretary determines 

4 an adjustment is necessary. 

5 ‘‘(4) INSTITUTIONAL COMPARISON.—The Sec6 retary shall include on the College Dashboard website 

7 a method for users to easily compare the information 

8 required under paragraphs (1) and (2) between insti9 tutions. 

10 ‘‘(5) UPDATES.— 

11 ‘‘(A) DATA.—The Secretary shall update the 

12 College Dashboard website not less than annu13 ally. 

14 ‘‘(B) TECHNOLOGY AND FORMAT.—The Sec15 retary shall regularly assess the format and tech16 nology of the College Dashboard website and 

17 make any changes or updates that the Secretary 

18 considers appropriate. 

19 ‘‘(6) CONSUMER TESTING.— 

20 ‘‘(A) IN GENERAL.—In developing and 

21 maintaining the College Dashboard website, the 

22 Secretary, in consultation with appropriate de23 partments and agencies of the Federal Govern24 ment, shall conduct consumer testing with ap25 propriate persons, including current and proVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 spective college students, family members of such 

2 students, institutions of higher education, and 

3 experts, to ensure that the College Dashboard 

4 website is usable and easily understandable and 

5 provides useful and relevant information to stu6 dents and families. 

7 ‘‘(B) RECOMMENDATIONS FOR CHANGES.— 

8 The Secretary shall submit to the authorizing 

9 committees any recommendations that the Sec10 retary considers appropriate for changing the in11 formation required to be provided on the College 

12 Dashboard website under paragraphs (1) and (2) 

13 based on the results of the consumer testing con14 ducted under subparagraph (A). 

15 ‘‘(7) PROVISION OF APPROPRIATE LINKS TO PRO16 SPECTIVE STUDENTS AFTER SUBMISSION OF

17 FAFSA.—The Secretary shall provide to each student 

18 who submits a Free Application for Federal Student 

19 Aid described in section 483 a link to the webpage of 

20 the College Dashboard website that contains the infor21 mation required under paragraph (1) for each insti22 tution of higher education such student includes on 

23 such Application. 

24 ‘‘(8) INTERAGENCY COORDINATION.—The Sec25 retary, in consultation with each appropriate head of 


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1 a department or agency of the Federal Government, 

2 shall ensure to the greatest extent practicable that any 

3 information related to higher education that is pub4 lished by such department or agency is consistent 

5 with the information published on the College Dash6 board website. 

7 ‘‘(9) DATA COLLECTION.—The Commissioner for 

8 Education Statistics shall continue to update and im9 prove the Integrated Postsecondary Education Data 

10 System, including by reducing institutional reporting 

11 burden and improving the timeliness of the data col12 lected. 

13 ‘‘(10) DATA PRIVACY.—The Secretary shall en14 sure any information made available under this sec15 tion is made available in accordance with section 444 

16 of the General Education Provisions Act (commonly 

17 known as the ‘Family Educational Rights and Pri18 vacy Act of 1974’).’’. 

19 (b) CONFORMING AMENDMENTS.—The Higher Edu20 cation Act of 1965 (20 U.S.C. 1001 et seq.), as amended 

21 by subsection (a) of this section, is further amended, by 

22 striking ‘‘College Navigator’’ each place it appears and in23 serting ‘‘College Dashboard’’. 

24 (c) REFERENCES.—Any reference in any law (other 

25 than this Act), regulation, document, record, or other paper 


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1 of the United States to the College Navigator website shall 

2 be considered to be a reference to the College Dashboard 

3 website. 

4 (d) DEVELOPMENT.—The Secretary of Education shall 

5 develop and publish the College Dashboard website required 

6 under section 132 (20 U.S.C. 1015a), as amended by this 

7 section, not later than one year after the date of the enact8 ment of this Act. 

9 (e) COLLEGE NAVIGATOR WEBSITE MAINTENANCE.— 

10 The Secretary shall maintain the College Navigator website 

11 required under section 132 (20 U.S.C. 1015a), as in effect 

12 the day before the date of the enactment of this Act, in the 

13 manner required under the Higher Education Act of 1965, 

14 as in effect on such day, until the College Dashboard website 

15 referred to in subsection (d) is complete and publicly avail16 able on the Internet. 

17 SEC. 122. NET PRICE CALCULATORS. 

18 Subsection (c) of section 132 (20 U.S.C. 1015a), as so 

19 redesignated by section 121(a)(4) of this Act, is amended— 

20 (1) by redesignating paragraph (4) as para21 graph (6); and 

22 (2) by inserting after paragraph (3) the fol23 lowing new paragraphs: 

24 ‘‘(4) MINIMUM REQUIREMENTS FOR NET PRICE

25 CALCULATORS.—Not later than 1 year after the date 


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1 of the enactment of the PROSPER Act, a net price 

2 calculator for an institution of higher education shall 

3 meet the following requirements: 

4 ‘‘(A) The link for the calculator shall— 

5 ‘‘(i) be clearly labeled as a net price 

6 calculator and prominently, clearly, and 

7 conspicuously posted in locations on the 

8 website of such institution where informa9 tion on costs and aid is provided and any 

10 other location that the institution considers 

11 appropriate; and 

12 ‘‘(ii) match in size and font to the 

13 other prominent links on the webpage where 

14 the link for the calculator is displayed. 

15 ‘‘(B) The webpage displaying the results for 

16 the calculator shall specify at least the following 

17 information: 

18 ‘‘(i) The net price (as calculated under 

19 subsection (a)(3)) for such institution, 

20 which shall be the most visually prominent 

21 figure on the results screen. 

22 ‘‘(ii) Cost of attendance, including— 

23 ‘‘(I) tuition and fees; 

24 ‘‘(II) average annual cost of room 

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1 time undergraduate student enrolled in 

2 the institution; 

3 ‘‘(III) average annual cost of 

4 books and supplies for a full-time un5 dergraduate student enrolled in the in6 stitution; and 

7 ‘‘(IV) estimated cost of other ex8 penses (including personal expenses 

9 and transportation) for a full-time un10 dergraduate student enrolled in the in11 stitution. 

12 ‘‘(iii) Estimated total need-based grant 

13 aid and merit-based grant aid from Fed14 eral, State, and institutional sources that 

15 may be available to a full-time under16 graduate student. 

17 ‘‘(iv) Percentage of the full-time under18 graduate students enrolled in the institution 

19 that received any type of grant aid de20 scribed in clause (iii). 

21 ‘‘(v) The disclaimer described in para22 graph (6). 

23 ‘‘(vi) In the case of a calculator that— 

24 ‘‘(I) includes questions to estimate 

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1 tive student for veterans’ education 

2 benefits (as defined in section 480) or 

3 educational benefits for active duty 

4 service members, such benefits are dis5 played on the results screen in a man6 ner that clearly distinguishes such ben7 efits from the grant aid described in 

8 clause (iii); or 

9 ‘‘(II) does not include questions to 

10 estimate eligibility for the benefits de11 scribed in subclause (I), the results 

12 screen indicates that certain students 

13 (or prospective students) may qualify 

14 for such benefits and includes a link to 

15 information about such benefits. 

16 ‘‘(C) The institution shall populate the cal17 culator with data from an academic year that is 

18 not more than 2 academic years prior to the 

19 most recent academic year. 

20 ‘‘(5) PROHIBITION ON USE OF DATA COLLECTED

21 BY THE NET PRICE CALCULATOR.—A net price calcu22 lator for an institution of higher education shall— 

23 ‘‘(A) clearly indicate which questions are 

24 required to be completed for an estimate of the 

25 net price from the calculator; 


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1 ‘‘(B) in the case of a calculator that requests 

2 contact information from users, clearly mark 

3 such requests as optional and provide for an esti4 mate of the net price from the calculator without 

5 requiring users to enter such information; and 

6 ‘‘(C) prohibit any personally identifiable 

7 information provided by users from being sold or 

8 made available to third parties.’’. 

9 SEC. 123. TEXT BOOK INFORMATION. 

10 Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amended 

11 by striking ‘‘section 102’’ and inserting ‘‘section 101 or 

12 102’’. 

13 SEC. 124. REVIEW OF CURRENT DATA COLLECTION AND 

14 FEASIBILITY STUDY OF IMPROVED DATA COL15 LECTION. 

16 Part C of title I (20 U.S.C. 1015 et seq.) is amended 

17 by adding at the end the following: 

18 ‘‘SEC. 138. REVIEW OF CURRENT DATA COLLECTION AND 

19 FEASIBILITY STUDY OF IMPROVED DATA COL20 LECTION. 

21 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

22 date of the enactment of the PROSPER Act, the Secretary 

23 shall, in order to help improve the information available 

24 to students and families and to eliminate significant and 


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1 burdensome data collection requirements placed on institu2 tions under this Act— 

3 ‘‘(1) complete a review of all data reporting re4 quirements on institutions under this Act; 

5 ‘‘(2) determine which requirements are duplica6 tive or no longer necessary to provide meaningful in7 formation for compliance, accountability, or trans8 parency in decision making; and 

9 ‘‘(3) examine the best way to collect data that in10 cludes all students from institutions that will— 

11 ‘‘(A) eliminate or reduce the burden and 

12 duplication of data reporting; and 

13 ‘‘(B) capture the data necessary to ensure 

14 compliance, accountability, and transparency in 

15 decision making which shall include, at a min16 imum— 

17 ‘‘(i) enrollment; 

18 ‘‘(ii) retention; 

19 ‘‘(iii) transfer; 

20 ‘‘(iv) completion; and 

21 ‘‘(v) post-collegiate earnings; and 

22 ‘‘(4) implement the changes necessary to improve 

23 the data reporting process for institutions, and sub24 mit a report to the authorizing committees on any 


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1 legislative changes necessary to make such improve2 ments. 

3 ‘‘(b) CONSULTATION.—In conducting the review under 

4 subsection (a)(1), the Secretary shall consult with— 

5 ‘‘(1) all applicable offices within the Department 

6 to ensure the review captures all data reporting re7 quirements under this Act; and 

8 ‘‘(2) relevant stakeholders, including students, 

9 parents, institutions of higher education, and privacy 

10 experts. 

11 ‘‘(c) DATA COLLECTION AND REPORTING.—In exam12 ining the best way to collect data under subsection (a)(3), 

13 the Secretary shall explore the feasibility of working with 

14 the National Student Clearinghouse to establish a third15 party method to collect and produce institution and pro16 gram-level analysis of the data determined necessary to re17 port, and how such data reported to the clearinghouse could 

18 be secured, while considering the following: 

19 ‘‘(1) Whether data reported to the clearinghouse 

20 can accurately reflect institutional and program-level 

21 enrollment, retention, transfer, and completion rates. 

22 ‘‘(2) How much duplication of reporting can be 

23 eliminated and if such reporting can replace the re24 porting to the Integrated Postsecondary Education 

25 Data System (IPEDS), including whether the data 


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1 quality will be maintained or improved from the cur2 rent data provided to the Department through 

3 IPEDS. 

4 ‘‘(3) Whether such reporting to the clearinghouse 

5 can protect the confidentiality of the reported data, 

6 while providing more accurate institutional perform7 ance measures. 

8 ‘‘(4) Whether such reporting can be made com9 patible with systems that include post-graduation out10 comes including employment and earnings data. 

11 ‘‘(5) Whether the use of the clearinghouse for 

12 such data reporting will change the current inter13 action between institutions and the clearinghouse. 

14 ‘‘(6) Whether the clearinghouse can meet the re15 quirements of such reporting without transferring any 

16 disaggregated data that would be personally identifi17 able to the Department of Education. 

18 ‘‘(7) Whether the clearinghouse can ensure the 

19 Department of Education would never have access to 

20 any health data, student discipline records or data, 

21 elementary and secondary education data, or infor22 mation relating to citizenship or national origin sta23 tus, course grades, individual postsecondary entrance 

24 examination results, political affiliation, or religion, 

25 as a result of producing information for program 


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1 level analysis of the data received from institutions of 

2 higher education. 

3 ‘‘(8) Whether the clearinghouse can provide the 

4 analysis under this subsection without maintaining 

5 or transferring, publishing, or submitting any data 

6 containing the information described in paragraph 

7 (7) to any entity, including any Federal or State 

8 agency. 

9 ‘‘(d) INTERIM REPORT.—Not later than 1 year after 

10 the date of the enactment of the PROSPER Act, the Sec11 retary shall submit to the authorizing committees a report 

12 on the Secretary’s progress in carrying out this section. 

13 ‘‘(e) RULE OF CONSTRUCTION.—Nothing in this sec14 tion shall be construed to authorize the development of a 

15 nationwide database of personally identifiable information 

16 on individuals involved in studies or other collections of 

17 data under this Act.’’. 

18 PART D—ADMINISTRATIVE PROVISIONS FOR 

19 DELIVERY OF STUDENT FINANCIAL ASSISTANCE 

20 SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE 

21 DELIVERY OF FEDERAL STUDENT FINANCIAL 

22 ASSISTANCE. 

23 Section 141 (20 U.S.C. 1018) is amended— 

24 (1) in subsection (a)(2)— 


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1 (A) by redesignating subparagraphs (F) 

2 and (G) as subparagraphs (H) and (I), respec3 tively; and 

4 (B) by inserting after subparagraph (E) the 

5 following: 

6 ‘‘(F) to maximize transparency in the oper7 ation of Federal student financial assistance pro8 grams; 

9 ‘‘(G) to maximize stakeholder engagement 

10 in the operation of and accountability for such 

11 programs;’’; 

12 (2) in subsection (b)— 

13 (A) in paragraph (1)(C)— 

14 (i) in clause (i), by striking ‘‘and’’ at 

15 the end; 

16 (ii) in clause (ii), by striking the pe17 riod at the end and inserting ‘‘; and’’; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(iii) acquiring senior managers and 

21 other personnel with demonstrated manage22 ment ability and expertise in consumer 

23 lending.’’; 

24 (B) in paragraph (2) by adding at the end 

25 the following: 


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1 ‘‘(C) Collecting input from stakeholders on 

2 the operation of all Federal student assistance 

3 programs and accountability practices relating 

4 to such programs, and ensuring that such input 

5 informs operation of the PBO and is provided to 

6 the Secretary to inform policy creation related to 

7 Federal student financial assistance programs.’’; 

8 and 

9 (C) in paragraph (6)— 

10 (i) in subparagraph (A), by striking 

11 ‘‘The Secretary’’ and inserting ‘‘Not less fre12 quently than once annually, the Secretary’’; 

13 (ii) by redesignating subparagraph (B) 

14 as subparagraph (C); and 

15 (iii) by inserting after subparagraph 

16 (A) the following: : 

17 ‘‘(B) REPORT.—On an annual basis, after 

18 carrying out the consultation required under 

19 subparagraph (A), the Secretary and the Chief 

20 Operating Officer shall jointly submit to the au21 thorizing committees a report that includes— 

22 ‘‘(i) a summary of the consultation; 

23 and 

24 ‘‘(ii) a description of any actions taken 

25 as a result of the consultation.’’. 


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1 (3) in subsection (c)— 

2 (A) in paragraph (1)— 

3 (i) in subparagraph (A)— 

4 (I) by striking ‘‘Each year,’’ and 

5 inserting ‘‘Not less frequently than 

6 once every three years,’’; and 

7 (II) by striking ‘‘succeeding 5’’ 

8 and inserting ‘‘succeeding 3’’; 

9 (ii) by amending subparagraph (B) to 

10 read as follows: 

11 ‘‘(B) CONSULTATION.— 

12 ‘‘(i) PLAN DEVELOPMENT.—Beginning 

13 not later than 12 months before issuing each 

14 3-year performance plan under subpara15 graph (A), the Secretary and the Chief Op16 erating Officer shall consult with students, 

17 institutions of higher education, Congress, 

18 lenders, and other interested parties regard19 ing the development of the plan. In carrying 

20 out such consultation, the Secretary shall 

21 seek public comment consistent with the re22 quirements of subchapter II of chapter 5 of 

23 title 5, United States Code (commonly 

24 known as the ‘Administrative Procedure 

25 Act’). 


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1 ‘‘(ii) REVISION.—Not later than 90 

2 days before implementing any revision to 

3 the performance plan described in subpara4 graph (A), the Secretary shall consult with 

5 students, institutions of higher education, 

6 Congress, lenders, and other interested par7 ties regarding such revision.’’; 

8 (iii) in subparagraph (C)— 

9 (I) in the matter preceding clause 

10 (i), by inserting ‘‘and target dates 

11 upon which such action steps will be 

12 taken and such goals will be achieved’’ 

13 after ‘‘achieve such goals’’; 

14 (II) by redesignating clause (v) as 

15 clause (vi); 

16 (III) by inserting after clause (iv) 

17 the following: 

18 ‘‘(v) ENSURING TRANSPARENCY.— 

19 Maximizing the transparency in the oper20 ations of the PBO, including complying 

21 with the data reporting requirements under 

22 section 144.’’; 

23 (B) in paragraph (2)— 

24 (i) by striking ‘‘5-year’’ and inserting 

25 ‘‘3-year’’; 


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1 (ii) in subparagraph (C), by inserting 

2 ‘‘, including an explanation of the specific 

3 steps the Secretary and the Chief Operating 

4 Officer will take to address any such goals 

5 that were not achieved’’ before the period; 

6 (iii) in subparagraph (D), by inserting 

7 ‘‘, in the aggregate and per individual’’ be8 fore the period; 

9 (iv) in subparagraph (E), by striking 

10 ‘‘Recommendations’’ and inserting ‘‘Specific 

11 recommendations’’; 

12 (v) by redesignating subparagraph (F) 

13 as subparagraph (G); and 

14 (vi) by inserting after subparagraph 

15 (E), the following: 

16 ‘‘(F) A description of the performance eval17 uation system developed under subsection 

18 (d)(6).’’. 

19 (C) in paragraph (3)— 

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘establish appro22 priate means to’’; 

23 (ii) in subparagraph (A), by striking 

24 ‘‘; and’’ and inserting ‘‘and the PBO;’’; 


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1 (iii) in subparagraph (B), by striking 

2 the period at the end and inserting ‘‘and 

3 the PBO; and’’; and 

4 (iv) by adding at the end the following: 

5 ‘‘(C) through a nationally-representative 

6 survey, that at a minimum shall evaluate the de7 gree of satisfaction with the delivery system and 

8 the PBO.’’; 

9 (4) in subsection (d)— 

10 (A) in paragraph (2), by striking ‘‘The Sec11 retary may reappoint’’ and inserting ‘‘Except as 

12 provided in paragraph (4)(C),’’ 

13 (B) in paragraph (4)— 

14 (i) in subparagraph (A)— 

15 (I) by inserting ‘‘specific,’’ after 

16 ‘‘set forth’’; and 

17 (II) by inserting ‘‘and metrics 

18 used to measure progress toward such 

19 goals’’ before the period; 

20 (ii) by amending subparagraph (B) to 

21 read as follows: 

22 ‘‘(B) TRANSMITTAL AND PUBLIC AVAIL23 ABILITY.—The Secretary shall— 

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1 quent revisions to, the agreement entered 

2 into under subparagraph (A); and 

3 ‘‘(ii) before the expiration of the period 

4 of 5 business days beginning after the date 

5 on which the agreement is transmitted 

6 under clause (i), make such agreement pub7 licly available on a publicly accessible 

8 website of the Department of Education.’’. 

9 (iii) by adding at the end the fol10 lowing: 

11 ‘‘(C) LOSS OF ELIGIBILITY.—If the agree12 ment under subparagraph (A) is not made pub13 licly available before the expiration of the period 

14 described in subparagraph (B)(ii), the Chief Op15 erating Officer shall not be eligible for reappoint16 ment under paragraph (2).’’; and 

17 (C) in paragraph (5), by amending sub18 paragraph (B) to read as follows: 

19 ‘‘(B) BONUS.—In addition, the Chief Oper20 ating Officer may receive a bonus in the fol21 lowing amounts: 

22 ‘‘(i) For a period covered by a per23 formance agreement entered into under 

24 paragraph (4) before the date of the enact25 ment of the PROSPER Act, an amount 


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1 that does not exceed 50 percent of the an2 nual rate basic pay of the Chief Operating 

3 Officer, based upon the Secretary’s evalua4 tion of the Chief Operating Officer’s per5 formance in relation to the goals set forth in 

6 the performance agreement. 

7 ‘‘(ii) For a period covered by a per8 formance agreement entered into under 

9 paragraph (4) on or after the date of the en10 actment of the PROSPER Act, an amount 

11 that does not exceed 40 percent of the an12 nual rate basic pay of the Chief Operating 

13 Officer, based upon the Secretary’s evalua14 tion of the Chief Operating Officer’s per15 formance in relation to the goals set forth in 

16 the performance agreement.’’. 

17 (D) by adding at the end the following: 

18 ‘‘(6) PERFORMANCE EVALUATION SYSTEM.—The 

19 Secretary shall develop a system to evaluate the per20 formance of the Chief Operating Officer and any sen21 ior managers appointed by such Officer under sub22 section (e). Such system shall— 

23 ‘‘(A) take into account the extent to which 

24 each individual attains the specific, measurable 

25 organizational and individual goals set forth in 


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1 the performance agreement described in para2 graph (4)(A) and subsection (e)(2) (as the case 

3 may be); and 

4 ‘‘(B) evaluate each individual using a rat5 ing system that accounts for the full spectrum of 

6 performance levels, from the failure of an indi7 vidual to meet the goals described in clause (i) 

8 to an individual’s success in meeting or exceed9 ing such goals.’’; 

10 (5) in subsection (e)— 

11 (A) in paragraph (2), by striking ‘‘organi12 zation and individual goals’’ and inserting ‘‘spe13 cific, measurable organization and individual 

14 goals and the metrics used to measure progress 

15 toward such goals’’; 

16 (B) in paragraph (3), by amending sub17 paragraph (B) to read as follows: 

18 ‘‘(B) BONUS.—In addition, a senior man19 ager may receive a bonus in the following 

20 amounts: 

21 ‘‘(i) For a period covered by a per22 formance agreement entered into under 

23 paragraph (2) before the date of the enact24 ment of the PROSPER Act, an amount 

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1 pensation does not exceed 125 percent of the 

2 maximum rate of basic pay for the Senior 

3 Executive Service, including any applicable 

4 locality-based comparability payment, based 

5 upon the Chief Operating Officer’s evalua6 tion of the manager’s performance in rela7 tion to the goals set forth in the perform8 ance agreement. 

9 ‘‘(ii) For a period covered by a per10 formance agreement entered into under 

11 paragraph (2) on or after the date of the en12 actment of the PROSPER Act, an amount 

13 such that the manager’s total annual com14 pensation does not exceed 120 percent of the 

15 maximum rate of basic pay for the Senior 

16 Executive Service, including any applicable 

17 locality-based comparability payment, based 

18 upon the Chief Operating Officer’s evalua19 tion of the manager’s performance in rela20 tion to the goals set forth in the perform21 ance agreement.’’. 

22 (6) by redesignating subsections (f), (g), (h), and 

23 (i) as subsections (g), (h), (i), (j); and 

24 (7) by inserting after subsection (e) the following: 

25 ‘‘(f) ADVISORY BOARD.— 


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1 ‘‘(1) ESTABLISHMENT AND PURPOSE.—Not later 

2 than one year after the date of the enactment of the 

3 PROSPER Act, the Secretary shall establish an Advi4 sory Board (referred to in this subsection as the 

5 ‘Board’) for the PBO. The purpose of such Board 

6 shall be to conduct oversight over the PBO and the 

7 Chief Operating Officer and senior managers de8 scribed under subsection (e) to ensure that the PBO 

9 is meeting the purposes described in this section and 

10 the goals in the performance plan described under 

11 such section. 

12 ‘‘(2) MEMBERSHIP.— 

13 ‘‘(A) BOARD MEMBERS.—The Board shall 

14 consist of 7 members, one of whom shall be the 

15 Secretary. 

16 ‘‘(B) CHAIRMAN.—A Chairman of the 

17 Board shall be elected by the Board from among 

18 its members for a 2-year term. 

19 ‘‘(C) SECRETARY AS AN EX OFFICIO MEM20 BER.—The Secretary, ex officio— 

21 ‘‘(i) shall— 

22 ‘‘(I) serve as a member of the 

23 Board; 

24 ‘‘(II) be a voting member of the 

25 Board; and 


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1 ‘‘(III) be eligible to be elected by 

2 the Board to serve as chairman or vice 

3 chairman of the Board; and 

4 ‘‘(ii) shall not be subject to the terms or 

5 compensation requirements described in this 

6 paragraph that are applicable to the other 

7 members of the Board. 

8 ‘‘(D) ADDITIONAL BOARD MEMBERS.—Each 

9 member of the Board (excluding the Secretary) 

10 shall be appointed by the Secretary. 

11 ‘‘(E) TERMS.— 

12 ‘‘(i) IN GENERAL.—Each Board mem13 ber, except for the Secretary and the Board 

14 members described in clause (ii)(II), shall 

15 serve 5-year terms. 

16 ‘‘(ii) INITIAL MEMBERS.— 

17 ‘‘(I) FIRST 3 MEMBERS.—The first 

18 3 members confirmed to serve on the 

19 Board after the date of enactment of 

20 the PROSPER Act shall serve for 5- 

21 year terms. 

22 ‘‘(II) OTHER MEMBERS.—The 

23 fourth, fifth, and sixth members con24 firmed to serve on the Board after such 


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1 date of enactment shall serve for 3-year 

2 terms. 

3 ‘‘(iii) REAPPOINTMENT.—The Sec4 retary may reappoint a Board member for 

5 one additional 5-year term. 

6 ‘‘(iv) VACANCIES.— 

7 ‘‘(I) IN GENERAL.—Not later than 

8 30 days after a vacancy of the Board 

9 occurs, the Secretary shall publish a 

10 Federal Register notice soliciting nomi11 nations for the position. 

12 ‘‘(II) FILLING VACANCY.—Not 

13 later than 90 days after such vacancy 

14 occurs, such vacancy shall be filled in 

15 the same manner as the original ap16 pointment was made, except that— 

17 ‘‘(aa) the appointment shall 

18 be for the remainder of the 

19 uncompleted term; and 

20 ‘‘(bb) such member may be 

21 reappointed under clause (iii). 

22 ‘‘(F) MEMBERSHIP QUALIFICATIONS AND

23 PROHIBITIONS.— 

24 ‘‘(i) QUALIFICATIONS.—The members 

25 of the board, other than the Secretary, shall 


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1 be appointed without regard to political af2 filiation and solely on the basis of their pro3 fessional experience and expertise in— 

4 ‘‘(I) the management of large and 

5 financially significant organizations, 

6 including banks and commercial lend7 ing companies; or 

8 ‘‘(II) Federal student financial 

9 assistance programs. 

10 ‘‘(ii) CONFLICTS OF INTEREST AMONG

11 BOARD MEMBERS.—Before appointing mem12 bers of the Board, the Secretary shall estab13 lish rules and procedures to address any po14 tential conflict of interest between a member 

15 of the Board and responsibilities of the 

16 Board, including prohibiting membership 

17 for individuals with a pecuniary interest in 

18 the activities of the PBO. 

19 ‘‘(G) NO COMPENSATION.—Board members 

20 shall serve without pay. 

21 ‘‘(H) EXPENSES OF BOARD MEMBERS.— 

22 Each member of the Board shall receive travel 

23 expenses and other permissible expenses, includ24 ing per diem in lieu of subsistence, in accordance 


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1 with applicable provisions under title 5, United 

2 States Code. 

3 ‘‘(3) BOARD RESPONSIBILITIES.—The Board 

4 shall have the following responsibilities: 

5 ‘‘(A) Conducting general oversight over the 

6 functioning and operation of the PBO, includ7 ing— 

8 ‘‘(i) ensuring that the reporting and 

9 planning requirements of this section are 

10 fulfilled by the PBO; and 

11 ‘‘(ii) ensuring that the Chief Operating 

12 Officer acquires senior managers with dem13 onstrated management ability and expertise 

14 in consumer lending (as described in sub15 section (b)(1)(C)(iii)). 

16 ‘‘(B) Approving the appointment or re17 appointment of a Chief Operating Officer, except 

18 that the board shall have no authority to approve 

19 or disapprove the reappointment of the Chief Op20 erating Officer who holds such position on the 

21 date of enactment of the PROSPER Act. 

22 ‘‘(C) Making recommendations with respect 

23 to the suitability of any bonuses proposed to be 

24 provided to the Chief Operating Officer or senior 

25 managers described under subsections (d) and 


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1 (e), to ensure that a bonus is not awarded to the 

2 Officer or a senior manager in a case in which 

3 such Officer or manager has failed to meet goals 

4 set for them under the relevant performance plan 

5 under subsections (d)(4) and (e)(2), respectively. 

6 ‘‘(D) Approving any performance plan es7 tablished for the PBO. 

8 ‘‘(4) BOARD OPERATIONS.— 

9 ‘‘(A) MEETINGS.—The Board shall meet at 

10 least twice per year and at such other times as 

11 the chairperson determines appropriate. 

12 ‘‘(B) POWERS OF CHAIRPERSON.—Except 

13 as otherwise provided by a majority vote of the 

14 Board, the powers of the chairperson shall in15 clude— 

16 ‘‘(i) establishing committees; 

17 ‘‘(ii) setting meeting places and times; 

18 ‘‘(iii) establishing meeting agendas; 

19 and 

20 ‘‘(iv) developing rules for the conduct 

21 of business. 

22 ‘‘(C) QUORUM.—Four members of the Board 

23 shall constitute a quorum. A majority of mem24 bers present and voting shall be required for the 

25 Board to take action. 


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1 ‘‘(D) ADMINISTRATION.—The Federal Advi2 sory Committee Act shall not apply with respect 

3 to the Board, other than sections 10, 11 and 12 

4 of such Act. 

5 ‘‘(5) ANNUAL REPORT.— 

6 ‘‘(A) IN GENERAL.—Not less frequently than 

7 once annually, the Board shall submit to the au8 thorizing committees a report on the results of 

9 the work conducted by the PBO. 

10 ‘‘(B) CONTENTS.—Each report under clause 

11 (i) shall include— 

12 ‘‘(i) a description of the oversight work 

13 of the Board and the results of such work; 

14 ‘‘(ii) a description of statutory require15 ments of this section and section 144 where 

16 the PBO is not in compliance; 

17 ‘‘(iii) recommendations on the ap18 pointment or reappointment of a Chief Op19 erating Officer; 

20 ‘‘(iv) recommendations regarding 

21 bonus payments for the Chief Operating Of22 ficer and senior managers; and 

23 ‘‘(v) recommendations for the author24 izing Committees and the Appropriations 

25 Committees on— 


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1 ‘‘(I) any statutory changes needed 

2 that would enhance the ability of the 

3 PBO to meet the purposes of this sec4 tion; and 

5 ‘‘(II) any recommendations for 

6 the Secretary or the Chief Operating 

7 Officer that will improve the oper8 ations of the PBO. 

9 ‘‘(vi) ISSUANCE AND PUBLIC RE10 LEASE.—Each report under clause (i) shall 

11 be posted on the publicly accessible website 

12 of the Department of Education. 

13 ‘‘(vii) PBO RECOMMENDATIONS.—Not 

14 later than 180 days after the submission of 

15 each report under clause (i), the Chief Oper16 ating Officer shall respond to each rec17 ommendation individually, which shall in18 clude a description of such actions that the 

19 Officer is undertaking to address such rec20 ommendation. 

21 ‘‘(C) STAFF.— 

22 ‘‘(i) IN GENERAL.—The Secretary may 

23 appoint to the Board not more than 7 em24 ployees to assist in carrying out the duties 

25 of the Board under this section. 


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1 ‘‘(ii) TECHNICAL EMPLOYEES.—Such 

2 appointments may include, for terms not to 

3 exceed 3 years and without regard to the 

4 provisions of title 5, United States Code, 

5 governing appointments in the competitive 

6 service, not more than 3 technical employees 

7 who may be paid without regard to the pro8 visions of chapter 51 and subchapter III of 

9 chapter 53 of such title relating to classi10 fication and General Schedule pay rates, 

11 but no individual so appointed shall be 

12 paid in excess of the rate authorized for 

13 GS–18 of the General Schedule. 

14 ‘‘(iii) DETAILEES.—The Secretary 

15 may detail, on a reimbursable basis, any of 

16 the personnel of the Department for the pur17 poses described in clause (i). Such employ18 ees shall serve without additional pay, al19 lowances, or benefits. 

20 ‘‘(iv) STATUTORY CONSTRUCTION.— 

21 Nothing in this subparagraph shall be con22 strued to provide for an increase in the 

23 total number of permanent full-time equiva24 lent positions in the Department or any 


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1 other department or agency of the Federal 

2 Government. 

3 ‘‘(6) BRIEFING ON ACTIVITIES OF THE OVER4 SIGHT BOARD.—The Secretary shall, upon request, 

5 provide a briefing to the authorizing committees on 

6 the steps the Board has taken to carry out its respon7 sibilities under this subsection.’’. 

8 SEC. 132. ADMINISTRATIVE DATA TRANSPARENCY. 

9 Part D of title I (20 U.S.C. 1018 et seq.) is amended 

10 by adding at the end the following: 

11 ‘‘SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY. 

12 ‘‘(a) IN GENERAL.—To improve the transparency of 

13 the student aid delivery system, the Secretary and the Chief 

14 Operating Officer shall collect and publish information on 

15 the performance of student loan programs under title IV 

16 in accordance with this section. 

17 ‘‘(b) DISCLOSURES.— 

18 ‘‘(1) IN GENERAL.—The Secretary and the Chief 

19 Operating Officer shall publish on a publicly acces20 sible website of the Department of Education the fol21 lowing aggregate statistics with respect to the per22 formance of student loans under title IV: 

23 ‘‘(A) The number of borrowers who paid off 

24 the total outstanding balance of principal and 


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1 interest on their loans before the end of the 10- 

2 year or consolidated loan repayment schedule. 

3 ‘‘(B) The number of loans under each type 

4 of deferment and forbearance. 

5 ‘‘(C) The average length of time a loan 

6 stays in default. 

7 ‘‘(D) The percentage of loans in default 

8 among borrowers who completed the program of 

9 study for which the loans were made. 

10 ‘‘(E) The number of borrowers enrolled in 

11 an income-based repayment plan who make 

12 monthly payments of $0 and the average student 

13 loan debt of such borrowers. 

14 ‘‘(F) The number of students whose loan 

15 balances are growing because such students are 

16 not paying the full amount of interest accruing 

17 on the loans. 

18 ‘‘(G) The number of borrowers entering in19 come-based repayment plans to get out of default. 

20 ‘‘(H) The number of borrowers in income21 based repayment plans who have outstanding 

22 student loans from graduate school, and the aver23 age balance of such loans. 

24 ‘‘(I) With respect to the public service loan 

25 forgiveness program under section 455(m)— 


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1 ‘‘(i) the number of applications sub2 mitted and processed; 

3 ‘‘(ii) the number of borrowers granted 

4 loan forgiveness; 

5 ‘‘(iii) the amount of loan debt forgiven; 

6 and 

7 ‘‘(iv) the number of borrowers granted 

8 loan forgiveness, and the amount of the loan 

9 debt forgiven, disaggregated by each cat10 egory of employer that employs individuals 

11 in public service jobs (as defined in section 

12 455(m)(3)(B), including— 

13 ‘‘(I) the Federal Government, or a 

14 State or local government; 

15 ‘‘(II) an organization that is de16 scribed in section 501(c)(3) of the In17 ternal Revenue Code of 1986 and ex18 empt from taxation under section 

19 501(a) of such Code; and 

20 ‘‘(III) a non-profit organization 

21 not described in subclause (II). 

22 ‘‘(J) Any other aggregate statistics the Sec23 retary and the Chief Operating Officer determine 

24 to be necessary to adequately inform the public 


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1 of the performance of the student loan programs 

2 under title IV. 

3 ‘‘(2) DISAGGREGATION.—The statistics described 

4 in clauses (i) through (iii) of paragraph (1)(I) shall 

5 be disaggregated— 

6 ‘‘(A) by the number or amount for most re7 cent quarter; 

8 ‘‘(B) by the total number or amount as of 

9 the date of publication; 

10 ‘‘(C) by repayment plan; 

11 ‘‘(D) by borrowers seeking loan forgiveness 

12 for loans made for an undergraduate course of 

13 study; and 

14 ‘‘(E) by borrowers seeking loan forgiveness 

15 for loans made for a graduate course of study. 

16 ‘‘(3) QUARTERLY UPDATES.—The statistics pub17 lished under paragraph (1) shall be updated not less 

18 frequently than once each fiscal quarter. 

19 ‘‘(c) INFORMATION COLLECTION.— 

20 ‘‘(1) IN GENERAL.—The Secretary and the Chief 

21 Operating Officer shall collect information on the per22 formance of student loans under title IV over time, 

23 including— 


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1 ‘‘(A) measurement of the cash flow gen2 erated by such loans as determined by assessing 

3 monthly payments on the loans over time; 

4 ‘‘(B) the income level and employment sta5 tus of borrowers during repayment; 

6 ‘‘(C) the loan repayment history of bor7 rowers prior to default; 

8 ‘‘(D) the progress of borrowers in making 

9 monthly payments on loans after defaulting on 

10 the loans; and 

11 ‘‘(E) such other information as the Sec12 retary and the Chief Operating Officer determine 

13 to be appropriate. 

14 ‘‘(2) AVAILABILITY.— 

15 ‘‘(A) IN GENERAL.—The information col16 lected under paragraph (1) shall be made avail17 able biannually to organizations and researchers 

18 that— 

19 ‘‘(i) submit to the Secretary and the 

20 Chief Operating officer a request for such 

21 information; and 

22 ‘‘(ii) enter into an agreement with the 

23 National Center for Education Statistics 

24 under which the organization or researcher 

25 (as the case may be) agrees to use the inforVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 mation in accordance with the privacy laws 

2 described in subparagraph (B). 

3 ‘‘(B) PRIVACY PROTECTIONS.—The privacy 

4 laws described in this subparagraph are the fol5 lowing: 

6 ‘‘(i) Section 183 of the Education 

7 Sciences Reform Act of 2002 (20 U.S.C. 

8 9573). 

9 ‘‘(ii) The Privacy Act of 1974 (5 

10 U.S.C. 552a). 

11 ‘‘(iii) Section 444 of the General Edu12 cation Provisions Act (commonly known as 

13 the ‘Family Educational Rights and Pri14 vacy Act of 1974’) (20 U.S.C. 1232g). 

15 ‘‘(iv) Subtitle A of title V of the E– 

16 Government Act of 2002 (44 U.S.C. 3501 

17 note). 

18 ‘‘(C) FORMAT.—The information described 

19 in subparagraph (A) shall be made available in 

20 the format of a data file that contains an statis21 tically accurate, representative sample of all bor22 rowers of loans under title IV. 

23 ‘‘(d) DATA SHARING.—The Secretary and the Chief 

24 Operating Officer may enter into cooperative data sharing 

25 agreements with other Federal or State agencies to ensure 


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1 the accuracy of information collected and published under 

2 this section. 

3 ‘‘(e) PRIVACY.—The Secretary and the Chief Operating 

4 Officer shall ensure that any information collected, pub5 lished, or otherwise made available under this section does 

6 not reveal personally identifiable information.’’. 

7 SEC. 133. REPORT BY GAO ON TRANSFER OF FUNCTIONS OF 

8 THE OFFICE OF FEDERAL STUDENT AID TO 

9 THE DEPARTMENT OF TREASURY. 

10 (a) STUDY.—The Comptroller General of the United 

11 States shall conduct a study on the impact of transferring 

12 the functions, in whole or in part, of the Office of Federal 

13 Student Aid from the Department of Education to the De14 partment of the Treasury, which shall include— 

15 (1) the potential impact of such transfer on the 

16 Federal government, including— 

17 (A) any change in cost of administering the 

18 program; and 

19 (B) the duplication of duties by Federal 

20 agencies; 

21 (2) an analysis of how the responsibilities and 

22 operations of the Office of Federal Student Aid of the 

23 Department of Education overlaps with relevant re24 sponsibilities and operations at the Department of 

25 Treasury; 


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1 (3) an analysis of whether the employees of the 

2 Department of Treasury possess the necessary exper3 tise and experience to manage and oversee the func4 tions of the Office of Federal Student Aid of the De5 partment of Education; and 

6 (4) the potential impact of such transfer on ad7 ministrative costs and staff necessary for carrying out 

8 such functions. 

9 (b) CONSULTATION.—In conducting the study under 

10 subsection (a), the Comptroller General of the United States 

11 shall consult with stakeholders, including institutions of 

12 higher education, financial aid administrators, and exist13 ing entities that contract with the Office of Federal Student 

14 Aid of the Department of Education, that may be impacted 

15 by the transfer studied under such subsection. 

16 (c) REPORT.—Not later than 2 years after the date of 

17 the enactment of this Act, the Comptroller General of the 

18 United States shall complete the study under subsection (a) 

19 and submit a report to the House Committee on Education 

20 and the Workforce and the Senate Committee on Health, 

21 Education, Labor, and Pensions that includes the results 

22 of such study. 


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1 PART E—LENDER AND INSTITUTION REQUIRE2 MENTS RELATING TO EDUCATION LOANS 

3 SEC. 141. MODIFICATION OF PREFERRED LENDER AR4 RANGEMENTS. 

5 (a) IN GENERAL.—Part E of title I (20 U.S.C. 1019 

6 et seq.) is amended— 

7 (1) in section 151 (20 U.S.C. 1019(2))— 

8 (A) in paragraph (2), by striking ‘‘section 

9 102’’ and inserting ‘‘section 101 or 102’’; 

10 (B) in paragraph (3)— 

11 (i) by striking ‘‘or’’ at the end of sub12 paragraph (B); 

13 (ii) by redesignating subparagraph (C) 

14 as subparagraph (D); and 

15 (iii) by inserting after subparagraph 

16 (B), the following: 

17 ‘‘(C) any loan made under part E of title 

18 IV after the date of enactment of the PROSPER 

19 Act; or’’; 

20 (C) in paragraph (6)(A)— 

21 (i) by striking ‘‘and’’ at the end of 

22 clause (ii); 

23 (ii) by redesignating clause (iii) as 

24 clause (iv); and 

25 (iii) by inserting after clause (ii), the 

26 following: 


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1 ‘‘(iii) in the case of a loan issued or 

2 provided to a student under part E of title 

3 IV on or after the date of enactment of the 

4 PROSPER Act;’’; 

5 (D) in paragraph (8)(B)— 

6 (i) by striking ‘‘or’’ at the end of clause 

7 (i); 

8 (ii) by redesignating clause (ii) as 

9 clause (iii); and 

10 (iii) by inserting after clause (i), the 

11 following: 

12 ‘‘(ii) arrangements or agreements with 

13 respect to loans under part E of title IV; 

14 or’’; 

15 (2) in section 152 (20 U.S.C. 1019)— 

16 (A) in subsection (a)(1)— 

17 (i) in subparagraph (B), by amending 

18 clause (i) to read as follows: 

19 ‘‘(i) make available to the prospective 

20 borrower on a website or with informational 

21 material, the information the Board of Gov22 ernors of the Federal Reserve System re23 quires the lender to provide to the covered 

24 institution under section 128(e)(11) of the 


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1 Truth in Lending Act (15 U.S.C. 

2 1638(e)(11)) for such loan;’’; and 

3 (ii) by adding at the end the following: 

4 ‘‘(D) SPECIAL RULE.—Notwithstanding any 

5 other provision of law, a covered institution, or 

6 an institution-affiliated organization of such 

7 covered institution, shall not be required to pro8 vide any information regarding private edu9 cation loans to prospective borrowers except for 

10 the information described in subparagraph 

11 (B).’’; and 

12 (B) in subsection (b)(1)(A)(i), by striking 

13 ‘‘part B or D’’ and inserting ‘‘part B, D, or E’’; 

14 (3) in section 153 (20 U.S.C. 1019b)— 

15 (A) in subsection (a)— 

16 (i) in paragraph (1)(B)— 

17 (I) in clause (i), by adding ‘‘and’’ 

18 at the end; 

19 (II) in clause (ii), by striking ‘‘; 

20 and’’ at the end and inserting a pe21 riod; and 

22 (III) by striking clause (iii); and 

23 (ii) in paragraph (2), by amending 

24 subparagraph (C) to read as follows: 


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1 ‘‘(C) update such model disclosure form not 

2 later than 180 after the date of enactment of the 

3 PROSPER Act, and periodically thereafter, as 

4 necessary.’’; and 

5 (B) by amending subsection (c) to read as 

6 follows: 

7 ‘‘(c) DUTIES OF COVERED INSTITUTIONS AND INSTITU8 TION-AFFILIATED ORGANIZATIONS.— 

9 ‘‘(1) CODE OF CONDUCT.—Each covered institu10 tion, and each institution-affiliated organization of 

11 such covered institution, that has a preferred lender 

12 arrangement, shall comply with the code of conduct 

13 requirements of subparagraphs (A) through (C) of sec14 tion 487(a)(23). 

15 ‘‘(2) APPLICABLE CODE OF CONDUCT.—For pur16 poses of subparagraph (A), an institution-affiliated 

17 organization of a covered institution shall— 

18 ‘‘(A) comply with the code of conduct devel19 oped and published by such covered institution 

20 under subparagraphs (A) and (B) of section 

21 487(a)(23); 

22 ‘‘(B) if such institution-affiliated organiza23 tion has a website, publish such code of conduct 

24 prominently on the website; and 


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1 ‘‘(C) administer and enforce such code of 

2 conduct by, at a minimum, requiring that all of 

3 such organization’s agents with responsibilities 

4 with respect to education loans be annually in5 formed of the provisions of such code of con6 duct.’’; and 

7 (4) in section 154 (20 U.S.C. 1019c)— 

8 (A) in the section heading, by inserting be9 fore the period at the end the following: ‘‘OR

10 THE FEDERAL ONE LOAN PROGRAM’’; 

11 (B) by striking ‘‘William D. Ford Direct 

12 Loan Program’’ each place it appears and in13 serting ‘‘William D. Ford Direct Loan Program 

14 or the Federal ONE Loan Program’’ 

15 (C) by striking ‘‘part D’’ each place it ap16 pears and inserting ‘‘part D or E’’; and 

17 (D) in subsection (a)— 

18 (i) by striking ‘‘the development’’ and 

19 inserting ‘‘the first update’’; 

20 (ii) by striking ‘‘section 153(a)(2)(B)’’ 

21 and inserting ‘‘section 153(a)(2)(C)’’; and 

22 (iii) by striking ‘‘Federal Direct Staf23 ford Loans, Federal Direct Unsubsidized 

24 Stafford Loans, and Federal Direct PLUS’’ 


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1 and inserting ‘‘undergraduate, graduate, 

2 and parent’’. 

3 (b) LIMITATION.—The Secretary of Education shall 

4 not impose, administer, or enforce any requirements on a 

5 covered institution or an institution-affiliated organization 

6 of a covered institution relating to preferred lender lists or 

7 arrangements unless explicitly authorized by sections 

8 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education 

9 Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 1019b(c), or 

10 1094(h), respectively) as amended by this Act. 

11 PART F—ADDRESSING SEXUAL ASSAULT 

12 SEC. 151. ADDRESSING SEXUAL ASSAULT. 

13 Title I (20 U.S.C. 1001 et seq.) is amended by adding 

14 at the end the following new part: 

15 ‘‘PART F—ADDRESSING SEXUAL ASSAULT 

16 ‘‘SEC. 161. APPLICATION. 

17 ‘‘The requirements of this part shall apply to any in18 stitution of higher education receiving Federal financial as19 sistance under this Act, including financial assistance pro20 vided to students under title IV, other than— 

21 ‘‘(1) an institution outside the United States; or 

22 ‘‘(2) an institution that provides instruction pri23 marily through online courses. 


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1 ‘‘SEC. 162. CAMPUS CLIMATE SURVEYS. 

2 ‘‘(a) SURVEYS TO MEASURE CAMPUS ATTITUDES AND

3 CLIMATE REGARDING SEXUAL ASSAULT AND MISCONDUCT

4 ON CAMPUS.—Each institution of higher education that is 

5 subject to this part shall conduct surveys of its students to 

6 measure campus attitudes towards sexual assault and the 

7 general climate of the campus regarding the institution’s 

8 treatment of sexual assault on campus, and shall use the 

9 results of the survey to improve the institution’s ability to 

10 prevent and respond appropriately to incidents of sexual 

11 assault. 

12 ‘‘(b) CONTENTS.—The institution’s survey under this 

13 section shall consist of such questions as the institution con14 siders appropriate, which may (at the option of the institu15 tion) include any of the following: 

16 ‘‘(1) Questions on the incidence and prevalence 

17 of sexual assault experienced by students. 

18 ‘‘(2) Questions on whether students who experi19 ence sexual assault report such incidents to campus 

20 officials or law enforcement agencies. 

21 ‘‘(3) Questions on whether the alleged perpetra22 tors are students of the institution. 

23 ‘‘(4) Questions to test the students’ knowledge 

24 and understanding of institutional policies regarding 

25 sexual assault and available campus support services 

26 for victims of sexual assault. 


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1 ‘‘(5) Questions to test the students’ knowledge, 

2 understanding, and retention of campus sexual as3 sault prevention and awareness programming. 

4 ‘‘(6) Questions related to dating violence, domes5 tic violence, and stalking. 

6 ‘‘(c) OTHER ISSUES RELATING TO THE ADMINISTRA7 TION OF SURVEYS.— 

8 ‘‘(1) MANDATORY CONFIDENTIALITY OF RE9 SPONSES.—The institution shall ensure that all re10 sponses to surveys under this section are kept con11 fidential and do not require the respondents to pro12 vide personally identifiable information. 

13 ‘‘(2) ENCOURAGING USE OF BEST PRACTICES

14 AND APPROPRIATE LANGUAGE.—The institution is en15 couraged to administer the surveys under this section 

16 in accordance with best practices derived from peer17 reviewed research, and to use language that is sen18 sitive to potential respondents who may have been 

19 victims of sexual assault. 

20 ‘‘(3) ENCOURAGING RESPONSES.—The institu21 tion shall make a good faith effort to encourage stu22 dents to respond to the surveys. 

23 ‘‘(d) ROLE OF SECRETARY.— 

24 ‘‘(1) DEVELOPMENT OF SAMPLE SURVEYS.—The 

25 Secretary, in consultation with relevant stakeholders, 


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1 shall develop sample surveys that an institution may 

2 elect to use under this section, and shall post such 

3 surveys on a publicly accessible website of the Depart4 ment of Education. The Secretary shall develop sam5 ple surveys that are suitable for the various popu6 lations who will participate in the surveys. 

7 ‘‘(2) LIMIT ON OTHER ACTIVITIES.—In carrying 

8 out this section, the Secretary— 

9 ‘‘(A) may not regulate or otherwise impose 

10 conditions on the contents of an institution’s sur11 veys under this section, except as may be nec12 essary to ensure that the institution meets the 

13 confidentiality requirements of subsection (c)(1); 

14 and 

15 ‘‘(B) may not use the results of the surveys 

16 to make comparisons between institutions of 

17 higher education. 

18 ‘‘(e) FREQUENCY.—An institution of higher education 

19 that is subject to this part shall conduct a survey under 

20 this section not less frequently than once every 3 academic 

21 years. 

22 ‘‘SEC. 163. SURVIVORS’ COUNSELORS. 

23 ‘‘(a) REQUIRING INSTITUTIONS TO MAKE COUNSELOR

24 AVAILABLE.— 


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

2 education that is subject to this part shall retain the 

3 services of qualified sexual assault survivors’ coun4 selors to counsel and support students who are victims 

5 of sexual assault. 

6 ‘‘(2) USE OF CONTRACTORS PERMITTED.—At the 

7 option of the institution, the institution may retain 

8 the services of counselors who are employees of the in9 stitution or may enter into agreements with other in10 stitutions of higher education, victim advocacy orga11 nizations, or other appropriate sources to provide 

12 counselors for purposes of this section. 

13 ‘‘(3) NUMBER.—The institution shall retain such 

14 number of counselors under this section as the institu15 tion considers appropriate based on a reasonable de16 termination of the anticipated demand for such coun17 selors’ services, so long as the institution retains the 

18 services of at least one such counselor at all times. 

19 ‘‘(b) QUALIFICATIONS.—A counselor is qualified for 

20 purposes of this section if the counselor has completed edu21 cation specifically designed to enable the counselor to pro22 vide support to victims of sexual assault, and is familiar 

23 with relevant laws on sexual assault as well as the institu24 tion’s own policies regarding sexual assault. 


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1 ‘‘(c) INFORMING VICTIMS OF AVAILABLE OPTIONS AND

2 SERVICES.—In providing services pursuant to this section, 

3 a counselor shall— 

4 ‘‘(1) inform the victim of sexual assault of op5 tions available to victims, including the procedures 

6 the victim may follow to report the assault to the in7 stitution or to a law enforcement agency; and 

8 ‘‘(2) inform the victim of interim measures that 

9 may be taken pending the resolution of institutional 

10 disciplinary proceedings or the conclusion of criminal 

11 justice proceedings. 

12 ‘‘(d) CONFIDENTIALITY.— 

13 ‘‘(1) MAINTAINING CONFIDENTIALITY OF INFOR14 MATION.—In providing services pursuant to this sec15 tion, a counselor shall— 

16 ‘‘(A) maintain confidentiality with respect 

17 to any information provided by a victim of sex18 ual assault to the greatest extent permitted under 

19 applicable law; and 

20 ‘‘(B) notify the victim of any circumstances 

21 under which the counselor is required to report 

22 information to others (including a law enforce23 ment agency) notwithstanding the general re24 quirement to maintain confidentiality under 

25 subparagraph (A). 


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1 ‘‘(2) MAINTAINING PRIVACY OF RECORDS.—A 

2 counselor providing services pursuant to this section 

3 shall be considered a recognized professional for pur4 poses of section 444(a)(4)(B)(iv) of the General Edu5 cation Provisions Act (commonly known as the ‘Fam6 ily Educational Rights and Privacy Act of 1974’) (20 

7 U.S.C. 1232g(a)(4)(B)(iv)). 

8 ‘‘(e) LIMITATIONS.— 

9 ‘‘(1) NO REPORTING OF INCIDENTS UNDER

10 CLERY ACT OR OTHER AUTHORITY.—A counselor pro11 viding services pursuant to this section is not re12 quired to report incidents of sexual assault that are 

13 reported to the counselor for inclusion in any report 

14 on campus crime statistics, and shall not be consid15 ered part of a campus police or security department 

16 for purposes of section 485(f). 

17 ‘‘(2) NO COVERAGE OF COUNSELORS AS RESPON18 SIBLE EMPLOYEES UNDER TITLE IX.—A counselor 

19 providing services pursuant to this section on behalf 

20 of an institution of higher education shall not be con21 sidered a responsible employee of the institution for 

22 purposes of title IX of the Education Amendments of 

23 1972 (20 U.S.C. 1681 et seq.) or the regulations pro24 mulgated pursuant to such title. 


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1 ‘‘(f) NOTIFICATIONS TO STUDENTS.—Each institution 

2 of higher education that is subject to this part shall make 

3 a good faith effort to notify its students of the availability 

4 of the services of counselors pursuant to this section through 

5 the statement of policy described in section 485(f)(8)(B)(vi) 

6 and any other methods as the institution considers appro7 priate, including disseminating information through the 

8 institution’s website, posting notices throughout the cam9 pus, and including information as part of programs to edu10 cate students on sexual assault prevention and awareness. 

11 ‘‘SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL 

12 ASSAULT. 

13 ‘‘(a) REQUIREMENT TO DEVELOP AND DISTRIBUTE

14 FORM.—Each institution of higher education that is subject 

15 to this part shall develop a one-page form containing infor16 mation to provide guidance and assistance to students who 

17 may be victims of sexual assault, and shall make the form 

18 widely available to students. 

19 ‘‘(b) CONTENTS OF FORM.—The form developed under 

20 this section shall contain such information as the institu21 tion considers appropriate, and may include the following: 

22 ‘‘(1) Information about the services of counselors 

23 which are available pursuant to section 163, includ24 ing a statement that the counselor will provide the 

25 maximum degree of confidentiality permitted under 


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1 law, and a brief description of the circumstances 

2 under which the counselor may be required to report 

3 information notwithstanding the victim’s desire to 

4 keep the information confidential. 

5 ‘‘(2) Information about other appropriate cam6 pus resources and resources in the local community, 

7 including contact information. 

8 ‘‘(3) Information about where to obtain medical 

9 treatment, and information about transportation 

10 services to such medical treatment facilities, if avail11 able. 

12 ‘‘(4) Information about the importance of pre13 serving evidence after a sexual assault. 

14 ‘‘(5) Information about how to file a report with 

15 local law enforcement agencies. 

16 ‘‘(6) Information about the victim’s right to re17 quest accommodations, and examples of accommoda18 tions that may be provided. 

19 ‘‘(7) Information about the victim’s right to re20 quest that the institution begin an investigation of an 

21 allegation of sexual assault and initiate an institu22 tional disciplinary proceeding if the alleged perpe23 trator of the assault is another student or a member 

24 of the faculty or staff of the institution. 


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1 ‘‘(8) A statement that an institutional discipli2 nary proceeding is not a substitute for a criminal jus3 tice proceeding. 

4 ‘‘(9) Information about how to report a sexual 

5 assault to the institution, including the designated of6 ficial or office responsible for receiving these reports. 

7 ‘‘(c) DEVELOPMENT OF MODEL FORMS.—The Sec8 retary, in consultation with relevant stakeholders, shall de9 velop model forms that an institution may use to meet the 

10 requirements of this section, and shall include in such model 

11 forms language which may accommodate a variety of State 

12 and local laws and institutional policies. Nothing in this 

13 subsection may be construed to require an institution to use 

14 any of the model forms developed under this subsection. 

15 ‘‘SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL 

16 LAW ENFORCEMENT AGENCIES. 

17 ‘‘(a) FINDINGS; PURPOSE.— 

18 ‘‘(1) FINDINGS.—Because sexual assault is a se19 rious crime, coordination and cooperation between in20 stitutions of higher education and law enforcement 

21 agencies are critical in ensuring that reports of sexual 

22 assaults on campus are handled in an appropriate 

23 and effective manner. A memorandum of under24 standing entered into between an institution and the 

25 law enforcement agency with primary jurisdiction for 


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1 responding to reports of sexual assault on the institu2 tion’s campus is a useful tool to promote this coordi3 nation and cooperation. 

4 ‘‘(2) PURPOSE.—It is the purpose of this section 

5 to encourage each institution of higher education that 

6 is subject to this part to enter into a memorandum 

7 of understanding with the law enforcement agency 

8 with primary jurisdiction for responding to reports of 

9 sexual assault on the institution’s campus so that re10 ports of sexual assault on the institution’s campus 

11 may be handled in an appropriate and effective man12 ner. 

13 ‘‘(b) CONTENTS OF MEMORANDUM.—An institution of 

14 higher education and a law enforcement agency entering 

15 into a memorandum of understanding described in this sec16 tion are encouraged to include in the memorandum provi17 sions addressing the following: 

18 ‘‘(1) An outline of the protocols and a delinea19 tion of responsibilities for responding to a report of 

20 sexual assault occurring on campus. 

21 ‘‘(2) A clarification of each party’s responsibil22 ities under existing Federal, State, and local law or 

23 policies. 

24 ‘‘(3) The need for the law enforcement agency to 

25 know about institutional policies and resources so 


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1 that the agency can direct student-victims of sexual 

2 assault to such resources. 

3 ‘‘(4) The need for the institution to know about 

4 resources available within the criminal justice system 

5 to assist survivors, including the presence of special 

6 prosecutor or police units specifically designated to 

7 handle sexual assault cases. 

8 ‘‘(5) If the institution has a campus police or se9 curity department with law enforcement authority, 

10 the need to clarify the relationship and delineate the 

11 responsibilities between such department and the law 

12 enforcement agency with respect to handling incidents 

13 of sexual assaults occurring on campus. 

14 ‘‘(c) ROLE OF SECRETARY.—The Secretary, in con15 sultation with the Attorney General, shall develop best prac16 tices for memoranda of understanding described in this sec17 tion, and shall disseminate such best practices on a publicly 

18 accessible website of the Department of Education. 

19 ‘‘SEC. 166. DEFINITIONS. 

20 ‘‘In this part: 

21 ‘‘(1) The term ‘sexual assault’ has the meaning 

22 given such term in section 485(f)(6)(A)(v). 

23 ‘‘(2) The terms ‘dating violence’, ‘domestic vio24 lence’, and ‘stalking’, have the meaning given such 

25 terms in section 485(f)(6)(A)(i).’’. 


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1 TITLE II—EXPANDING ACCESS 

2 TO IN-DEMAND APPRENTICE3 SHIPS 

4 SEC. 201. REPEAL. 

5 (a) REPEAL.—Title II (20 U.S.C. 1021 et seq.) is re6 pealed. 

7 (b) PART A TRANSITION.—Part A of title II (20 

8 U.S.C. 1022 et seq.), as in effect on the day before the date 

9 of the enactment of this Act, may be carried out using funds 

10 that have been appropriated for such part until September 

11 30, 2018. 

12 SEC. 202. GRANTS FOR ACCESS TO HIGH-DEMAND CAREERS. 

13 The Higher Education Act of 1965 (20 U.S.C. 1001 

14 et seq.) is amended by inserting after title I the following: 

15 ‘‘TITLE II—EXPANDING ACCESS 

16 TO IN-DEMAND APPRENTICE17 SHIPS 

18 ‘‘SEC. 201. APPRENTICESHIP GRANT PROGRAM. 

19 ‘‘(a) PURPOSE.—The purpose of this section is to ex20 pand student access to, and participation in, new industry21 led earn-and-learn programs leading to high-wage, high22 skill, and high-demand careers. 

23 ‘‘(b) AUTHORIZATION OF APPRENTICESHIP GRANT

24 PROGRAM.— 


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1 ‘‘(1) IN GENERAL.—From the amounts author2 ized under subsection (j), the Secretary shall award 

3 grants, on a competitive basis, to eligible partnerships 

4 for the purpose described in subsection (a). 

5 ‘‘(2) DURATION.—The Secretary shall award 

6 grants under this section for a period of— 

7 ‘‘(A) not less than 1 year; and 

8 ‘‘(B) not more than 4 years. 

9 ‘‘(3) LIMITATIONS.— 

10 ‘‘(A) AMOUNT.—A grant awarded under 

11 this section may not be in an amount greater 

12 than $1,500,000. 

13 ‘‘(B) NUMBER OF AWARDS.—An eligible 

14 partnership or member of such partnership may 

15 not be awarded more than one grant under this 

16 section. 

17 ‘‘(C) ADMINISTRATION COSTS.—An eligible 

18 partnership awarded a grant under this section 

19 may not use more than 5 percent of the grant 

20 funds to pay administrative costs associated with 

21 activities funded by the grant. 

22 ‘‘(c) MATCHING FUNDS.—To receive a grant under this 

23 section, an eligible partnership shall, through cash or in24 kind contributions, provide matching funds from non-FedVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 eral sources in an amount equal to or greater than 50 per2 cent of the amount of such grant. 

3 ‘‘(d) APPLICATIONS.— 

4 ‘‘(1) IN GENERAL.—To receive a grant under 

5 this section, an eligible partnership shall submit to 

6 the Secretary at such a time as the Secretary may re7 quire, an application that— 

8 ‘‘(A) identifies and designates the business 

9 or institution of higher education responsible for 

10 the administration and supervision of the earn11 and-learn program for which such grant funds 

12 would be used; 

13 ‘‘(B) identifies the businesses and institu14 tions of higher education that comprise the eligi15 ble partnership; 

16 ‘‘(C) identifies the source and amount of the 

17 matching funds required under subsection (c); 

18 ‘‘(D) identifies the number of students who 

19 will participate and complete the relevant earn20 and-learn program within 1 year of the expira21 tion of the grant; 

22 ‘‘(E) identifies the amount of time, not to 

23 exceed 2 years, required for students to complete 

24 the program; 


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1 ‘‘(F) identifies the relevant recognized post2 secondary credential to be awarded to students 

3 who complete the program; 

4 ‘‘(G) identifies the anticipated earnings of 

5 students— 

6 ‘‘(i) 1 year after program completion; 

7 and 

8 ‘‘(ii) 3 years after program completion; 

9 ‘‘(H) describes the specific project for which 

10 the application is submitted, including a sum11 mary of the relevant classroom and paid struc12 tured on-the-job training students will receive; 

13 ‘‘(I) describes how the eligible partnership 

14 will finance the program after the end of the 

15 grant period; 

16 ‘‘(J) describes how the eligible partnership 

17 will support the collection of information and 

18 data for purposes of the program evaluation re19 quired under subsection (h); and 

20 ‘‘(K) describes the alignment of the program 

21 with State identified in-demand industry sectors. 

22 ‘‘(2) APPLICATION REVIEW PROCESS.— 

23 ‘‘(A) REVIEW PANEL.—Applications sub24 mitted under paragraph (1) shall be read by a 

25 panel of readers composed of individuals selected 


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1 by the Secretary. The Secretary shall assure that 

2 an individual assigned under this paragraph 

3 does not have a conflict of interest with respect 

4 to the applications reviewed by such individual. 

5 ‘‘(B) COMPOSITION OF REVIEW PANEL.— 

6 The panel of reviewers selected by the Secretary 

7 under subparagraph (A) shall be comprised as 

8 follows: 

9 ‘‘(i) A majority of the panel shall be 

10 individuals who are representative of busi11 nesses, which may include owners, execu12 tives with optimum hiring authority, or in13 dividuals representing business organiza14 tions or business trade associations. 

15 ‘‘(ii) The remainder of the panel shall 

16 be equally divided between individuals who 

17 are— 

18 ‘‘(I) representatives of institutions 

19 of higher education that offer programs 

20 of two years or less; and 

21 ‘‘(II) representatives of State 

22 workforce development boards estab23 lished under section 101 of the Work24 force Innovation and Opportunity Act 

25 (29 U.S.C. 3111). 


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1 ‘‘(C) REVIEW OF APPLICATIONS.—The Sec2 retary shall instruct the review panel selected by 

3 the Secretary under paragraph (2)(A) to evalu4 ate applications using only the criteria specified 

5 in paragraph (1) and make recommendations 

6 with respect to— 

7 ‘‘(i) the quality of the applications; 

8 ‘‘(ii) whether a grant should be award9 ed for a project under this title; and 

10 ‘‘(iii) the amount and duration of such 

11 grant. 

12 ‘‘(D) NOTIFICATION.—Not later than June 

13 30 of each year, the Secretary shall notify each 

14 eligible partnership submitting an application 

15 under this section of— 

16 ‘‘(i) the scores given the applicant by 

17 the panel pursuant to this section; 

18 ‘‘(ii) the recommendations of the panel 

19 with respect to such application; and 

20 ‘‘(iii) the reasons for the decision of the 

21 Secretary in awarding or refusing to award 

22 a grant under this section; and 

23 ‘‘(iv) modifications, if any, in the rec24 ommendations of the panel made to the Sec25 retary. 


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1 ‘‘(e) AWARD BASIS.—The Secretary shall award grants 

2 under this section on the following basis— 

3 ‘‘(1) the number of participants to be served by 

4 the grant; 

5 ‘‘(2) the anticipated income of program partici6 pants in relation to the regional median income; 

7 ‘‘(3) the alignment of the program with State8 identified in-demand industry sectors; and 

9 ‘‘(4) the recommendations of the readers under 

10 subsection (d)(2)(C). 

11 ‘‘(f) USE OF FUNDS.—Grant funds provided under 

12 this section may be used for— 

13 ‘‘(1) the purchase of appropriate equipment, 

14 technology, or instructional material, aligned with 

15 business and industry needs, including machinery, 

16 testing equipment, hardware and software; 

17 ‘‘(2) student books, supplies, and equipment re18 quired for enrollment; 

19 ‘‘(3) the reimbursement of up to 50 percent of the 

20 wages of a student participating in an earn-and21 learn program receiving a grant under this section; 

22 ‘‘(4) the development of industry-specific pro23 graming; 


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1 ‘‘(5) supporting the transition of industry-based 

2 professionals from an industry setting to an academic 

3 setting; 

4 ‘‘(6) industry-recognized certification exams or 

5 other assessments leading to a recognized postsec6 ondary credential associated with the earn-and-learn 

7 program; and 

8 ‘‘(7) any fees associated with the certifications or 

9 assessments described in paragraph (6). 

10 ‘‘(g) TECHNICAL ASSISTANCE.—The Secretary may 

11 provide technical assistance to eligible partnerships award12 ed under this section throughout the grant period for pur13 poses of grant management. 

14 ‘‘(h) EVALUATION.— 

15 ‘‘(1) IN GENERAL.—From the amounts made 

16 available under subsection (j), the Secretary, acting 

17 through the Director of the Institute for Education 

18 Sciences, shall provide for the independent evaluation 

19 of the grant program established under this section 

20 that includes the following: 

21 ‘‘(A) An assessment of the effectiveness of the 

22 grant program in expanding earn-and-learn pro23 gram opportunities offered by employers in con24 junction with institutions of higher education. 


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1 ‘‘(B) The number of students who partici2 pated in programs assisted under this section. 

3 ‘‘(C) The percentage of students partici4 pating in programs assisted under this section 

5 who successfully completed the program in the 

6 time described in subsection (d)(1)(E). 

7 ‘‘(D) The median earnings of program par8 ticipants— 

9 ‘‘(i) 1 year after exiting the program; 

10 and 

11 ‘‘(ii) 3 years after exiting the program. 

12 ‘‘(E) The percentage of students partici13 pating in programs assisted under this section 

14 who successfully receive a recognized postsec15 ondary credential. 

16 ‘‘(F) The number of students served by pro17 grams receiving funding under this section— 

18 ‘‘(i) 2 years after the end of the grant 

19 period; 

20 ‘‘(ii) 4 years after the end of the grant 

21 period. 

22 ‘‘(2) PROHIBITION.—Notwithstanding any other 

23 provision of law, the evaluation required by this sub24 section shall not be subject to any review outside the 


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1 Institute for Education Sciences before such reports 

2 are submitted to Congress and the Secretary. 

3 ‘‘(3) PUBLICATION.—The evaluation required by 

4 this subsection shall be made publicly available on the 

5 website of the Department. 

6 ‘‘(i) DEFINITIONS.—In this section: 

7 ‘‘(1) EARN-AND-LEARN PROGRAM.—The term 

8 ‘earn-and-learn program’ means an education pro9 gram, including an apprenticeship program, that 

10 provides students with structured, sustained, and 

11 paid on-the-job training and accompanying, for cred12 it, classroom instruction that— 

13 ‘‘(A) is for a period of between 3 months 

14 and 2 years; and 

15 ‘‘(B) leads to, on completion of the program, 

16 a recognized postsecondary credential. 

17 ‘‘(2) ELIGIBLE PARTNERSHIP.—The term ‘eligi18 ble partnership’ shall mean a consortium that in19 cludes— 

20 ‘‘(A) 1 or more businesses; and 

21 ‘‘(B) 1 or more institutions of higher edu22 cation. 

23 ‘‘(3) IN-DEMAND INDUSTRY SECTOR OR OCCUPA24 TION.—The term ‘in-demand industry sector or occu25 pation’ has the meaning given the term in section 3 


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1 of the Workforce Innovation and Opportunity Act (29 

2 U.S.C. 3102). 

3 ‘‘(4) ON-THE-JOB TRAINING.—The term ‘on-the4 job training’ has the meaning given the term in sec5 tion 3 of the Workforce Innovation and Opportunity 

6 Act (29 U.S.C. 3102). 

7 ‘‘(5) RECOGNIZED POSTSECONDARY CREDEN8 TIAL.—The term ‘recognized postsecondary credential’ 

9 has the meaning given the term in section 3 of the 

10 Workforce Innovation and Opportunity Act (29 

11 U.S.C. 3102). 

12 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There are 

13 authorized to be appropriated to carry out this section 

14 $183,204,000 for fiscal year 2019 and each of the 5 suc15 ceeding fiscal years.’’. 

16 TITLE III—INSTITUTIONAL AID 

17 SEC. 301. STRENGTHENING INSTITUTIONS. 

18 Part A of title III (20 U.S.C. 1057 et seq.) is amend19 ed— 

20 (1) in the part heading for part A, by inserting 

21 ‘‘MINORITY-SERVING’’ after ‘‘STRENGTHENING’’; 

22 (2) in section 311— 

23 (A) by striking subsection (b) and redesig24 nating subsections (c) and (d) as subsections (b) 

25 and (c), respectively; 


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1 (B) in subsection (b) (as so redesignated)— 

2 (i) by striking paragraph (6) and in3 serting the following: 

4 ‘‘(6) Tutoring, counseling, advising, and student 

5 service programs designed to improve academic suc6 cess, including innovative and customized instruc7 tional courses (which may include remedial education 

8 and English language instruction) designed to help 

9 retain students and move the students rapidly into 

10 core courses and through program completion.’’; 

11 (ii) in paragraph (8), by striking ‘‘ac12 quisition of equipment for use in strength13 ening funds management’’ and inserting 

14 ‘‘acquisition of technology, services, and 

15 equipment for use in strengthening funds 

16 and administrative management’’; 

17 (iii) in paragraph (12), by striking 

18 ‘‘Creating’’ and all that follows through 

19 ‘‘technologies,’’ and inserting ‘‘Innovative 

20 learning models and creating or improving 

21 facilities for Internet or other innovative 

22 technologies,’’; 

23 (iv) by redesignating paragraph (13) 

24 as paragraph (18); and 


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1 (v) by inserting after paragraph (12) 

2 the following: 

3 ‘‘(13) Establishing community outreach pro4 grams that will encourage elementary school and sec5 ondary school students to develop the academic skills 

6 and the interest to pursue postsecondary education. 

7 ‘‘(14) The development, coordination, implemen8 tation, or improvement of career and technical edu9 cation programs as defined in section 135 of the Carl 

10 D. Perkins Career and Technical Education Act of 

11 2006 (20 U.S.C. 2355). 

12 ‘‘(15) Alignment and integration of career and 

13 technical education programs with programs of study 

14 leading to a bachelor’s degree, graduate degree, or 

15 professional degree. 

16 ‘‘(16) Developing or expanding access to dual or 

17 concurrent enrollment programs and early college 

18 high school programs. 

19 ‘‘(17) Pay for success initiatives that improve 

20 time to completion and increase graduation rates.’’; 

21 and 

22 (C) in subsection (c) (as so redesignated), 

23 by adding at the end the following: 

24 ‘‘(4) SCHOLARSHIP.—An institution that uses 

25 grant funds provided under this part to establish or 


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1 increase an endowment fund may use the income 

2 from such endowment fund to provide scholarships to 

3 students for the purposes of attending such institu4 tion, subject to the limitation in section 

5 331(c)(3)(B)(i).’’; 

6 (3) in section 312— 

7 (A) in subsection (a), by striking ‘‘transfers 

8 which the institution’’ and inserting ‘‘transfers 

9 that the institution’’; 

10 (B) in subsection (b)(1)— 

11 (i) by redesignating subparagraphs (E) 

12 and (F) as subparagraphs (F) and (E), re13 spectively (and by reordering such subpara14 graphs accordingly); 

15 (ii) in subparagraph (E) (as so redes16 ignated), by inserting ‘‘(as defined in sec17 tion 103(20)(A))’’ after ‘‘State’’; and 

18 (iii) in subparagraph (F) (as so redes19 ignated), by striking ‘‘and’’ at the end; and 

20 (C) in subsection (b)— 

21 (i) by striking the period at the end of 

22 paragraph (2) and inserting ‘‘; and’’; and 

23 (ii) by inserting after paragraph (2) 

24 the following: 


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1 ‘‘(3) except as provided in section 392(b), an in2 stitution that has a completion rate of at least 25 per3 cent that is calculated by counting a student as com4 pleted if that student— 

5 ‘‘(A) graduates within 150 percent of the 

6 normal time for completion; or 

7 ‘‘(B) enrolled into another program at an 

8 institution for which the previous program pro9 vided substantial preparation within 150 percent 

10 of the normal time for completion.’’; 

11 (4) in section 313— 

12 (A) in subsection (a)— 

13 (i) by striking ‘‘for 5 years’’ and in14 serting ‘‘for a period of 5 years’’; and 

15 (ii) by adding at the end the following: 

16 ‘‘Any funds awarded under this section that 

17 are not expended or used for the purposes 

18 for which the funds were paid within 10 

19 years following the date on which the grant 

20 was awarded, shall be repaid to the Treas21 ury.’’; and 

22 (B) by striking subsection (d); 

23 (5) in section 316— 

24 (A) in subsection (c)— 

25 (i) in paragraph (2)— 


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1 (I) by striking subparagraph (A) 

2 and inserting the following: 

3 ‘‘(A) the activities described in paragraphs 

4 (1) through (12) and (14) through (17) of section 

5 311(b);’’; 

6 (II) by striking subparagraphs 

7 (E) through (J); 

8 (III) by redesignating subpara9 graphs (K) and (L) as subparagraphs 

10 (E) and (F), respectively; 

11 (IV) by striking subparagraph 

12 (M); and 

13 (V) by redesignating subpara14 graph (N) as subparagraph (G); and 

15 (VI) in subparagraph (G) (as so 

16 redesignated), by striking ‘‘(M)’’ and 

17 inserting ‘‘(F)’’; and 

18 (ii) by striking paragraph (3) and in19 serting the following: 

20 ‘‘(3) ENDOWMENT FUND.—A Tribal College or 

21 University seeking to establish or increase an endow22 ment fund shall abide by the requirements in section 

23 311(c).’’; and 

24 (B) in subsection (d)— 


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1 (i) by striking paragraph (2) and in2 serting the following: 

3 ‘‘(2) APPLICATION.—A Tribal College or Univer4 sity desiring to receive assistance under this section 

5 shall submit an application to the Secretary pursuant 

6 to section 391.’’; and 

7 (ii) in paragraph (4)— 

8 (I) in subparagraph (A), by strik9 ing ‘‘part A of’’; and 

10 (II) in subparagraph (B), by 

11 striking ‘‘313(d)’’ and inserting 

12 ‘‘312(b)(3)’’; 

13 (6) in section 317— 

14 (A) in subsection (c)— 

15 (i) by striking paragraph (2) and in16 serting the following: 

17 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— 

18 Such programs may include— 

19 ‘‘(A) the activities described in paragraphs 

20 (1) through (17) of section 311(b); and 

21 ‘‘(B) other activities proposed in the appli22 cation submitted pursuant to subsection (d) 

23 that— 

24 ‘‘(i) contribute to carrying out the pur25 pose of this section; and 


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1 ‘‘(ii) are approved by the Secretary as 

2 part of the review and approval of an ap3 plication submitted under subsection (d).’’; 

4 and 

5 (ii) by adding at the end the following: 

6 ‘‘(3) ENDOWMENT FUND.—An Alaska Native7 serving institution and Native Hawaiian-serving in8 stitution seeking to establish or increase an endow9 ment fund shall abide by the requirements in section 

10 311(c).’’; and 

11 (B) in subsection (d)— 

12 (i) by striking paragraph (1) and re13 designating paragraphs (2) and (3) as 

14 paragraphs (1) and (2), respectively; 

15 (ii) in paragraph (1) (as so redesig16 nated)— 

17 (I) in the first sentence, by insert18 ing ‘‘pursuant to section 391’’ after ‘‘to 

19 the Secretary’’; and 

20 (II) by striking the remaining 

21 sentences; and 

22 (iii) in paragraph (2) (as so redesig23 nated)— 

24 (I) in subparagraph (A), by strik25 ing ‘‘this part or part B.’’ and insertVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ing ‘‘this part, part B, or title V.’’; 

2 and 

3 (II) by striking subparagraph (B) 

4 and redesignating subparagraph (C) as 

5 subparagraph (B); 

6 (7) in section 318— 

7 (A) in subsection (b)— 

8 (i) in paragraph (1)— 

9 (I) in subparagraph (E), by strik10 ing ‘‘and’’ at the end; 

11 (II) in subparagraph (F)(ii), by 

12 striking ‘‘part A of’’; 

13 (III) in subparagraph (F)(iii), by 

14 striking the period at the end and in15 serting ‘‘; and’’; and 

16 (IV) by adding at the end the fol17 lowing; 

18 ‘‘(G) is an eligible institution under section 

19 312(b).’’; and 

20 (ii) by striking paragraph (7); 

21 (B) in subsection (d)— 

22 (i) in paragraph (2)— 

23 (I) in subparagraph (A), by strik24 ing ‘‘through (12) of section 311(c)’’ 


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1 and inserting ‘‘through (17) of section 

2 311(b)’’; 

3 (II) by striking subparagraph 

4 (D); and 

5 (III) by redesignating subpara6 graph (E) as subparagraph (D); and 

7 (ii) by striking paragraph (3) and in8 serting the following: 

9 ‘‘(3) ENDOWMENT FUND.—A Predominantly 

10 Black Institution seeking to establish or increase an 

11 endowment fund shall abide by the requirements in 

12 section 311(c).’’; 

13 (C) in subsection (f), by striking all after 

14 ‘‘Secretary’’ the first place such term appears 

15 and inserting ‘‘pursuant to section 391.’’; 

16 (D) by striking subsections (g) and (h); 

17 (E) by redesignating subsection (i) as sub18 section (g); and 

19 (F) in subsection (g) (as so redesignated), 

20 by striking ‘‘part A of’’; 

21 (8) in section 319— 

22 (A) in subsection (c)— 

23 (i) by striking paragraph (2) and in24 serting the following: 


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1 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— 

2 Such programs may include— 

3 ‘‘(A) the activities described in paragraphs 

4 (1) through (17) of section 311(b); and 

5 ‘‘(B) other activities proposed in the appli6 cation submitted pursuant to subsection (d) 

7 that— 

8 ‘‘(i) contribute to carrying out the pur9 pose of this section; and 

10 ‘‘(ii) are approved by the Secretary as 

11 part of the review and approval of an ap12 plication submitted under subsection (d).’’; 

13 and 

14 (ii) by adding at the end the following: 

15 ‘‘(3) ENDOWMENT FUND.—A Native American16 serving, nontribal institution seeking to establish or 

17 increase an endowment fund shall abide by the re18 quirements in section 311(c).’’; and 

19 (B) in subsection (d)— 

20 (i) by striking paragraph (1) and in21 serting the following: 

22 ‘‘(1) APPLICATION.—A Native American-serving, 

23 nontribal institution desiring to receive assistance 

24 under this section shall submit an application to the 

25 Secretary pursuant to section 391.’’; 


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1 (ii) by striking paragraph (2) and re2 designating paragraph (3) as paragraph 

3 (2); and 

4 (iii) in paragraph (2) (as so redesig5 nated)— 

6 (I) in subparagraph (A), by strik7 ing ‘‘part A of’’; 

8 (II) by striking subparagraph 

9 (B); and 

10 (III) by redesignating subpara11 graphs (C) and (D) as subparagraphs 

12 (B) and (C), respectively; and 

13 (9) in section 320— 

14 (A) in subsection (c)— 

15 (i) by striking paragraph (2) and in16 serting the following: 

17 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— 

18 Such programs may include— 

19 ‘‘(A) the activities described in paragraphs 

20 (1) through (17) of section 311(b); 

21 ‘‘(B) academic instruction in disciplines in 

22 which Asian Americans and Native American 

23 Pacific Islanders are underrepresented; 


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1 ‘‘(C) conducting research and data collec2 tion for Asian American and Native American 

3 Pacific Islander populations and subpopulations; 

4 ‘‘(D) establishing partnerships with commu5 nity-based organizations serving Asian Ameri6 cans and Native American Pacific Islanders; 

7 and 

8 ‘‘(E) other activities proposed in the appli9 cation submitted pursuant to subsection (d) 

10 that— 

11 ‘‘(i) contribute to carrying out the pur12 pose of this section; and 

13 ‘‘(ii) are approved by the Secretary as 

14 part of the review and approval of an ap15 plication submitted under subsection (d).’’; 

16 and 

17 (ii) by adding at the end the following: 

18 ‘‘(3) ENDOWMENT FUND.—An Asian American 

19 and Native American Pacific Islander-serving institu20 tion seeking to establish or increase an endowment 

21 fund shall abide by the requirements in section 

22 311(c).’’; and 

23 (B) in subsection (d)— 

24 (i) by striking paragraph (1) and in25 serting the following: 


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1 ‘‘(1) APPLICATION.—Each Asian American and 

2 Native American Pacific Islander-serving institution 

3 desiring to receive assistance under this section shall 

4 submit an application to the Secretary pursuant to 

5 section 391.’’; 

6 (ii) by striking paragraph (2) and re7 designating paragraph (3) as paragraph 

8 (2); and 

9 (iii) in paragraph (2) (as so redesig10 nated), by striking subparagraph (B) and 

11 redesignating subparagraph (C) as subpara12 graph (B). 

13 SEC. 302. STRENGTHENING HISTORICALLY BLACK COL14 LEGES AND UNIVERSITIES. 

15 Part B of title III (20 U.S.C. 1060 et seq.) is amend16 ed— 

17 (1) in section 323— 

18 (A) by striking subsection (a) and inserting 

19 the following : 

20 ‘‘(a) AUTHORIZED ACTIVITIES.—From amounts avail21 able under section 399(a)(2) for any fiscal year, the Sec22 retary shall make grants (under section 324) to institutions 

23 which have applications approved by the Secretary (under 

24 section 325) for any of the following uses: 


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1 ‘‘(1) The activities described in paragraphs (1) 

2 through (17) of section 311(b). 

3 ‘‘(2) Academic instruction in disciplines in 

4 which Black Americans are underrepresented. 

5 ‘‘(3) Initiatives to improve the educational out6 comes of African American males. 

7 ‘‘(4) Establishing or enhancing a program of 

8 teacher education designed to qualify students to teach 

9 in a public elementary or secondary school in the 

10 State that shall include, as part of such program, 

11 preparation for teacher certification. 

12 ‘‘(5) Acquisition of real property in connection 

13 with the construction, renovation, or addition to or 

14 improvement of campus facilities. 

15 ‘‘(6) Services necessary for the implementation of 

16 projects or activities that are described in the grant 

17 application and that are approved, in advance, by the 

18 Secretary, except that not more than two percent of 

19 the grant amount may be used for this purpose. 

20 ‘‘(7) Other activities proposed in the application 

21 submitted pursuant to section 325 that— 

22 ‘‘(A) contribute to carrying out the purposes 

23 of this part; and 


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1 ‘‘(B) are approved by the Secretary as part 

2 of the review and acceptance of such applica3 tion.’’; and 

4 (B) by striking subsection (b) and inserting 

5 the following: 

6 ‘‘(b) ENDOWMENT FUND.—An institution seeking to 

7 establish or increase an endowment shall abide by the re8 quirements in section 311(c).’’; 

9 (2) in section 325(a), by striking ‘‘(C), (D), and 

10 (E)’’ and inserting ‘‘(C) through (F)’’; 

11 (3) in section 326— 

12 (A) by striking subsection (b) and inserting 

13 the following: 

14 ‘‘(b) DURATION.—The Secretary may award a grant 

15 to an eligible institution under this part for a period of 

16 5 years. Any funds awarded under this section that are not 

17 expended or used for the purposes for which the funds were 

18 paid within 10 years following the date on which the grant 

19 was awarded, shall be repaid to the Treasury.’’; 

20 (B) by striking subsection (c) and inserting 

21 the following: 

22 ‘‘(c) AUTHORIZED ACTIVITIES.—A grant under this 

23 section may be used for— 


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1 ‘‘(1) the activities described in paragraphs (1) 

2 through (12), (14) through (15), and (17) of section 

3 311(b); 

4 ‘‘(2) scholarships, fellowships, and other finan5 cial assistance for needy graduate and professional 

6 students to permit the enrollment of the students in 

7 and completion of the doctoral degree in medicine, 

8 dentistry, pharmacy, veterinary medicine, law, and 

9 the doctorate degree in the physical or natural 

10 sciences, engineering, mathematics, or other scientific 

11 disciplines in which African Americans are underrep12 resented; 

13 ‘‘(3) acquisition of real property that is adjacent 

14 to the campus in connection with the construction, 

15 renovation, or addition to or improvement of campus 

16 facilities; 

17 ‘‘(4) services necessary for the implementation of 

18 projects or activities that are described in the grant 

19 application and that are approved, in advance, by the 

20 Secretary, except that not more than two percent of 

21 the grant amount may be used for this purpose; and 

22 ‘‘(5) other activities proposed in the application 

23 submitted under subsection (d) that— 

24 ‘‘(A) contribute to carrying out the purposes 

25 of this part; and 


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1 ‘‘(B) are approved by the Secretary as part 

2 of the review and acceptance of such applica3 tion.’’; 

4 (C) in subsection (e)(1)— 

5 (i) in subparagraph (W), by striking 

6 ‘‘and’’ at the end; 

7 (ii) in subparagraph (X), by striking 

8 the period at the end and inserting ‘‘; and’’; 

9 (iii) by adding at the end the fol10 lowing: 

11 ‘‘(Y) University of the Virgin Islands School 

12 of Medicine.’’; 

13 (iv) in each of paragraphs (2) and (3) 

14 of subsection (f), by striking ‘‘(X)’’ and in15 serting ‘‘(Y)’’; and 

16 (v) in subsection (g), by striking 

17 ‘‘2008’’ each place such term appears and 

18 inserting ‘‘2018’’; and 

19 (4) in section 327— 

20 (A) by striking the designation and heading 

21 for subsection (a); and 

22 (B) by striking subsection (b). 


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1 SEC. 303. HISTORICALLY BLACK COLLEGE AND UNIVERSITY 

2 CAPITAL FINANCING. 

3 Part D of title III (20 U.S.C. 1066 et seq.) is amend4 ed— 

5 (1) in section 343— 

6 (A) in subsection (b)— 

7 (i) in paragraph (1), by striking ‘‘an 

8 escrow account’’ and inserting ‘‘a bond in9 surance fund’’; and 

10 (ii) in paragraph (8)— 

11 (I) in the matter preceding sub12 paragraph (A), by striking ‘‘establish 

13 an escrow account’’ and inserting 

14 ‘‘subject to subsection (f), establish a 

15 bond insurance fund’’; and 

16 (II) in subparagraph (A), by 

17 striking ‘‘the escrow account’’ and in18 serting ‘‘the bond insurance fund’’; and 

19 (iii) in paragraph (9)— 

20 (I) by striking ‘‘the escrow ac21 count’’ and inserting ‘‘the bond insur22 ance fund or the escrow account de23 scribed in subsection (f)(1)(B)’’ and 

24 (II) by striking ‘‘such escrow ac25 count’’ and inserting ‘‘such bond insur26 ance fund or escrow account’’; 


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1 (iv) in subsection (c)— 

2 (I) in paragraph (2), by striking 

3 ‘‘the escrow account described in sub4 section (b)(8)’’ and inserting ‘‘the bond 

5 insurance fund described in subsection 

6 (b)(8) and the escrow account described 

7 in subsection (f)(1)(B)’’; 

8 (II) in paragraph (4), by striking 

9 ‘‘and the escrow account’’ and insert10 ing ‘‘, the bond insurance fund, and 

11 the escrow account described in sub12 section (f)(1)(B)’’; and 

13 (III) in paragraph (5)(B), by 

14 striking ‘‘and the escrow account’’ and 

15 inserting ‘‘, the bond insurance fund, 

16 and the escrow account described in 

17 subsection (f)(1)(B)’’; and 

18 (v) by adding at the end the following: 

19 ‘‘(f) APPLICABILITY OF BOND INSURANCE FUND AND

20 ESCROW ACCOUNT AND SPECIAL RULES.— 

21 ‘‘(1) APPLICABILITY OF BOND INSURANCE FUND

22 AND ESCROW ACCOUNT.—Except as provided in para23 graph (2)— 

24 ‘‘(A) the bond insurance fund established 

25 under subsection (b)(8) on the date of enactment 


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1 of the PROSPER Act shall be made available 

2 with respect to loans made under this part on or 

3 after such date; and 

4 ‘‘(B) the escrow account established under 

5 subsection (b)(8) before the date of enactment of 

6 the PROSPER Act and as in effect on the day 

7 before such date of enactment shall be made 

8 available with respect to loans made under this 

9 part before the date of enactment of the PROS10 PER Act. 

11 ‘‘(2) SPECIAL RULES.—Notwithstanding para12 graph (1)— 

13 ‘‘(A) in a case in which the amount in the 

14 bond insurance fund described in paragraph 

15 (1)(A) is insufficient to make payments of prin16 cipal and interest on bonds under subsection 

17 (b)(8)(B)(i) in the event of delinquency in loan 

18 repayment on loans made under this part on or 

19 after the date of enactment of the PROSPER 

20 Act, amounts in the escrow fund described in 

21 paragraph (1)(B) shall be made available to the 

22 Secretary to make such payments; 

23 ‘‘(B) in a case in which the amount in the 

24 escrow account described in paragraph (1)(B) is 

25 insufficient to make payments of principal and 


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1 interest on bonds under subsection (b)(8)(B)(i) 

2 in the event of delinquency in loan repayment on 

3 loans made under this part before the date of en4 actment of the PROSPER Act, amounts in the 

5 bond insurance fund described in paragraph 

6 (1)(A) shall be made available to the Secretary 

7 to make such payments; and 

8 ‘‘(C) in a case in which an institution is re9 quired to return an amount equal to any re10 maining portion of such institution’s 5 percent 

11 deposit of loan proceeds under subsection 

12 (b)(8)(B)(ii), the institution shall return to the 

13 escrow account and the bond insurance fund an 

14 amount that is proportionate to the amount that 

15 was withdrawn from the escrow account and the 

16 bond insurance fund, respectively, by such insti17 tution.’’; 

18 (2) in section 345, by striking paragraph (9) 

19 and inserting the following: 

20 ‘‘(9) may, directly or by grant or contract, pro21 vide financial counseling and technical assistance to 

22 eligible institutions to prepare the institutions to 

23 qualify, apply for, and maintain a capital improve24 ment loan, including a loan under this part; and’’; 

25 and 


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1 (3) in section 347(c), by striking paragraph (2) 

2 and inserting the following: 

3 ‘‘(2) REPORT.—On an annual basis, the Advi4 sory Board shall prepare and submit to the author5 izing committees a report on the status of the histori6 cally Black colleges and universities described in 

7 paragraph (1)(A) and an overview of all loans in the 

8 capital financing program, including the most recent 

9 loans awarded in the fiscal year in which the report 

10 is submitted. The report shall include administrative 

11 and legislative recommendations, as needed, for ad12 dressing the issues related to construction financing 

13 facing historically Black colleges and universities.’’. 

14 SEC. 304. MINORITY SCIENCE AND ENGINEERING IMPROVE15 MENT PROGRAM. 

16 Part E of title III (20 U.S.C. 1067 et seq.) is amend17 ed— 

18 (1) in section 353(a)— 

19 (A) in paragraph (1), by striking ‘‘365(6)’’ 

20 and inserting ‘‘359(6)’’; 

21 (B) in paragraph (2), by striking ‘‘365(7)’’ 

22 and inserting ‘‘359(7)’’; 

23 (C) in paragraph (3), by striking ‘‘365(8)’’ 

24 and inserting ‘‘359(8)’’; and 


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1 (D) in paragraph (4), by striking ‘‘365(9)’’ 

2 and inserting ‘‘359(9)’’; 

3 (2) by striking subpart 2; 

4 (3) by redesignating subpart 3 as subpart 2 and 

5 redesignating sections 361 through 365 as sections 

6 355 through 359, respectively; 

7 (4) in section 355 (as so redesignated), by strik8 ing paragraph (5); 

9 (5) in section 356(a) (as so redesignated), by 

10 striking ‘‘determined under section 361)’’ and insert11 ing ‘‘determined under section 355)’’; and 

12 (6) in section 359(2) (as so redesignated)— 

13 (A) by inserting ‘‘American’’ after ‘‘Black’’; 

14 and 

15 (B) by striking ‘‘Hispanic (including’’ and 

16 inserting ‘‘Hispanic American (including’’. 

17 SEC. 305. STRENGTHENING HISTORICALLY BLACK COL18 LEGES AND UNIVERSITIES AND OTHER MI19 NORITY-SERVING INSTITUTIONS. 

20 Section 371 (20 U.S.C. 1067q) is amended— 

21 (1) in subsection (b)(2)(D)(iii), by striking ‘‘sec22 tion 311(c)’’ and inserting ‘‘section 311(b)’’; and 

23 (2) in subsection (c)(9)(F)(ii), by striking ‘‘part 

24 A of’’. 


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1 SEC. 306. GENERAL PROVISIONS. 

2 Part G of title III (20 U.S.C. 1068 et seq.) is amend3 ed— 

4 (1) in section 391(b)— 

5 (A) in paragraph (1), by striking ‘‘institu6 tional management’’ and all that follows through 

7 the semicolon at the end and inserting ‘‘institu8 tional management, and use the grant to provide 

9 for, and lead to, institutional self-sustainability 

10 and growth (including measurable objectives for 

11 the institution and the Secretary to use in moni12 toring the effectiveness of activities under this 

13 title);’’; 

14 (B) in paragraph (7)— 

15 (i) by striking subparagraph (C) and 

16 redesignating subparagraphs (D) and (E) 

17 as subparagraphs (C) and (D), respectively; 

18 and 

19 (ii) in subparagraph (D) (as so redes20 ignated), strike ‘‘and’’ at the end; 

21 (C) by striking paragraph (8) and inserting 

22 the following: 

23 ‘‘(8) set forth a 5-year plan for improving the 

24 assistance provided by the institution; and’’; and 

25 (D) by adding at the end the following: 


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1 ‘‘(9) submit such enrollment data as may be nec2 essary to demonstrate that the institution is a minor3 ity-serving institution.’’; 

4 (2) in section 392— 

5 (A) in subsection (b)— 

6 (i) in the subsection heading, after 

7 ‘‘EXPENDITURES’’ insert ‘‘; COMPLETION

8 RATES’’; 

9 (ii) in paragraph (1), insert ‘‘or 

10 312(b)(3)’’ after ‘‘312(b)(1)(B)’’; and 

11 (iii) in paragraph (2)— 

12 (I) in the matter preceding sub13 paragraph (A)— 

14 (aa) by inserting ‘‘or 

15 312(b)(3)’’ after ‘‘312(b)(1)(B)’’; 

16 and 

17 (bb) by inserting ‘‘American’’ 

18 after ‘‘Hispanic’’; and 

19 (II) in subparagraph (A), by in20 serting ‘‘or section 312(b)(3)’’ after 

21 ‘‘312(b)(1)’’; and 

22 (B) by striking subsection (c) and inserting 

23 the following: 


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1 ‘‘(c) WAIVER AUTHORITY WITH RESPECT TO INSTITU2 TIONS LOCATED IN AN AREA AFFECTED BY A MAJOR DIS3 ASTER.— 

4 ‘‘(1) WAIVER AUTHORITY.—Notwithstanding any 

5 other provision of law, unless enacted with specific 

6 reference to this section, in the case of a major dis7 aster, the Secretary may waive for affected institu8 tions— 

9 ‘‘(A) the eligibility data requirements set 

10 forth in section 391(d) and section 521(e); 

11 ‘‘(B) the allotment requirements under sec12 tion 324; and 

13 ‘‘(C) the use of the funding formula devel14 oped pursuant to section 326(f)(3); 

15 ‘‘(2) DEFINITIONS.—In this subsection: 

16 ‘‘(A) AFFECTED INSTITUTION.—The term 

17 ‘affected institution’ means an institution of 

18 higher education that— 

19 ‘‘(i) is— 

20 ‘‘(I) a part A institution (which 

21 term shall have the meaning given the 

22 term ‘eligible institution’ under section 

23 312(b) or section 502(a)(6)); or 


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1 ‘‘(II) a part B institution, as such 

2 term is defined in section 322(2), or as 

3 identified in section 326(e); 

4 ‘‘(ii) is located in an area affected by 

5 a major disaster; and 

6 ‘‘(iii) is able to demonstrate that, as a 

7 result of the impact of a major disaster, the 

8 institution— 

9 ‘‘(I) incurred physical damage; 

10 ‘‘(II) has pursued collateral source 

11 compensation from insurance, the Fed12 eral Emergency Management Agency, 

13 and the Small Business Administra14 tion, as appropriate; and 

15 ‘‘(III) was not able to fully reopen 

16 in existing facilities or to fully reopen 

17 to the pre-disaster enrollment levels. 

18 ‘‘(B) MAJOR DISASTER.—The term ‘major 

19 disaster’ has the meaning given such term in sec20 tion 102(2) of the Robert T. Stafford Disaster 

21 Relief and Emergency Assistance Act (42 U.S.C. 

22 5122(2)).’’; and 

23 (3) in section 399, by striking subsection (a) and 

24 inserting the following: 

25 ‘‘(a) AUTHORIZATIONS.— 


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1 ‘‘(1) PART A.—(A) There are authorized to be 

2 appropriated to carry out section 316, $27,599,000 

3 for each of fiscal years 2019 through 2024. 

4 ‘‘(B) There are authorized to be appropriated to 

5 carry out section 317, $13,802,000 for each of fiscal 

6 years 2019 through 2024. 

7 ‘‘(C) There are authorized to be appropriated to 

8 carry out section 318, $9,942,000 for each of fiscal 

9 years 2019 through 2024. 

10 ‘‘(D) There are authorized to be appropriated to 

11 carry out section 319, $3,348,000 for each of fiscal 

12 years 2019 through 2024. 

13 ‘‘(E) There are authorized to be appropriated to 

14 carry out section 320, $3,348,000 for each of fiscal 

15 years 2019 through 2024. 

16 ‘‘(2) PART B.—(A) There are authorized to be 

17 appropriated to carry out part B (other than section 

18 326), $244,694,000 for each of fiscal years 2019 

19 through 2024. 

20 ‘‘(B) There are authorized to be appropriated to 

21 carry out section 326, $63,281,000 for each of fiscal 

22 years 2019 through 2024. 

23 ‘‘(3) PART D.—There are authorized to be appro24 priated to carry out part D, $20,484,000 for each of 

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1 thorized, 1.63 percent shall be reserved for adminis2 trative expenses. 

3 ‘‘(4) PART E.—There are authorized to be appro4 priated to carry out subpart 1 of part E, $9,648,000 

5 for each of fiscal years 2019 through 2024.’’. 

6 TITLE IV—STUDENT ASSISTANCE 

7 PART A—GRANTS TO STUDENTS IN ATTENDANCE 

8 AT INSTITUTIONS OF HIGHER EDUCATION 

9 SEC. 401. FEDERAL PELL GRANTS. 

10 (a) REAUTHORIZATION.—Section 401(a)(1) (20 U.S.C. 

11 1070a(a)(1)) is amended— 

12 (1) by striking ‘‘fiscal year 2017’’ and inserting 

13 ‘‘fiscal year 2024’’; and 

14 (2) by inserting ‘‘an eligible program at’’ after 

15 ‘‘attendance at’’. 

16 (b) FEDERAL PELL GRANT BONUS.— 

17 (1) AMENDMENTS.—Section 401(b) (20 U.S.C. 

18 1070a(b)) is amended— 

19 (A) in paragraph (7)(A)(iii)— 

20 (i) by inserting ‘‘and paragraph (9)’’ 

21 after ‘‘this paragraph’’; and 

22 (ii) by inserting before the semicolon at 

23 the end the following: ‘‘and to provide the 

24 additional amount required by paragraph 

25 (9)’’; and 


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1 (B) by adding at the end the following: 

2 ‘‘(9) FEDERAL PELL GRANT BONUS.— 

3 ‘‘(A) IN GENERAL.—Notwithstanding any 

4 other provision of this subsection and from the 

5 amounts made available pursuant to paragraph 

6 (7)(A)(iii) for the purposes of this paragraph, an 

7 eligible student who is receiving a Federal Pell 

8 Grant for an award year shall receive an 

9 amount in addition to such Federal Pell Grant 

10 for each payment period of such award year for 

11 which the student— 

12 ‘‘(i) is receiving such Federal Pell 

13 Grant as long as the amount of such Fed14 eral Pell Grant does not exceed the max15 imum amount of a Federal Pell Grant 

16 award determined under paragraph (2)(A) 

17 for such award year; and 

18 ‘‘(ii) is carrying a work load that— 

19 ‘‘(I) is greater than the normal 

20 full-time work load for the course of 

21 study the student is pursuing, as deter22 mined by the institution of higher edu23 cation; and 

24 ‘‘(II) will lead to the completion 

25 of not less than 30 credit hours (or the 


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1 equivalent coursework) upon the com2 pletion of the final payment period for 

3 which the student is receiving the Fed4 eral Pell Grant described in clause (i). 

5 ‘‘(B) AMOUNT OF BONUS.—The amount 

6 provided to an eligible student under subpara7 graph (A) for an award year may not exceed 

8 $300, which shall be equally divided among each 

9 payment period of such award year described in 

10 clauses (i) and (ii) of subparagraph (A).’’. 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by paragraph (1) shall take effect with respect to 

13 award year 2018–2019 and each succeeding award 

14 year. 

15 (c) PERIOD OF ELIGIBILITY FOR GRANTS.—Section 

16 401(c) (20 U.S.C. 1070a(c)) is amended by adding at the 

17 end the following: 

18 ‘‘(6)(A) The Secretary shall issue to each student re19 ceiving a Federal Pell Grant, an annual status report 

20 which shall— 

21 ‘‘(i) inform the student of the remaining period 

22 during which the student may receive Federal Pell 

23 Grants in accordance with paragraph (5), and pro24 vide access to a calculator to assist the student in 

25 making such determination; 


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1 ‘‘(ii) include an estimate of the Federal Pell 

2 Grant amounts which may be awarded for such re3 maining period based on the student’s award amount 

4 determined under subsection (b)(2)(A) for the most re5 cent award year; 

6 ‘‘(iii) explain how the estimate was calculated 

7 and any assumptions underlying the estimate; 

8 ‘‘(iv) explain that the estimate may be affected 

9 if there is a change— 

10 ‘‘(I) in the student’s financial cir11 cumstances; or 

12 ‘‘(II) the availability of Federal funding; 

13 and 

14 ‘‘(v) describe how the remaining period during 

15 which the student may receive Federal Pell Grants 

16 will be affected by whether the student is enrolled as 

17 a full-time student. 

18 ‘‘(B) Nothing in this paragraph shall be construed to 

19 prohibit an institution from offering additional counseling 

20 to a student with respect to Federal Pell Grants, but such 

21 counseling shall not delay or impede disbursement of a Fed22 eral Pell Grant award to the student.’’. 

23 (d) DISTRIBUTION OF GRANTS TO STUDENTS.—Sec24 tion 401(e) (20 U.S.C. 1070a(e)) is amended by striking 

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1 tion shall be made in the same manner as disbursements 

2 under section 465(a).’’. 

3 (e) INSTITUTIONAL INELIGIBILITY BASED ON DEFAULT

4 RATES.—Section 401(j) of such Act (20 U.S.C. 1070a(j)) 

5 is amended by adding at the end the following: 

6 ‘‘(3) SUNSET.—The provisions of this subsection 

7 shall not apply after the transition period described 

8 in section 481B(e)(3).’’. 

9 (f) PREVENTION OF FRAUD.—Section 401 (20 U.S.C. 

10 1070a) is amended by adding at the end the following: 

11 ‘‘(k) PREVENTION OF FRAUD.— 

12 ‘‘(1) PROHIBITION OF AWARDS.— 

13 ‘‘(A) IN GENERAL.—No Federal Pell Grant 

14 shall be awarded under this subpart to any stu15 dent who— 

16 ‘‘(i) received a Federal Pell Grant for 

17 3 award years; and 

18 ‘‘(ii) for each such award year, was en19 rolled in an institution of higher education 

20 and did not earn any academic credit for 

21 which the Federal Pell Grant was provided. 

22 ‘‘(B) WAIVER.—The student financial aid 

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1 graph (A) for a student, if the financial aid ad2 ministrator— 

3 ‘‘(i) determines that the student was 

4 unable to earn any academic credit as de5 scribed in subparagraph (A)(ii) due to cir6 cumstances beyond the student’s control; 

7 and 

8 ‘‘(ii) makes and documents such a de9 termination on an individual student basis. 

10 ‘‘(C) DEFINITION OF CIRCUMSTANCES BE11 YOND A STUDENT’S CONTROL.—For purposes of 

12 this paragraph, the term ‘circumstances beyond 

13 the student’s control’, when used with respect to 

14 an individual student— 

15 ‘‘(i) may include the student with16 drawing from an institution of higher edu17 cation due to illness; and 

18 ‘‘(ii) shall not include the student 

19 withdrawing from an institution of higher 

20 education to avoid a particular grade. 

21 ‘‘(2) SECRETARIAL DISCRETION TO STOP

22 AWARDS.—With respect to a student who receives a 

23 disbursement of a Federal Pell Grant for a payment 

24 period of an award year and whom the Secretary de25 termines has had an unusual enrollment history, the 


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1 Secretary may prevent such student from receiving 

2 any additional disbursements of such Federal Pell 

3 Grant for such award year until the student financial 

4 aid administrator at the student’s institution of high5 er education determines that the student’s enrollment 

6 history should not be considered an unusual enroll7 ment history.’’. 

8 (g) REPORT ON COSTS OF FEDERAL PELL GRANT

9 PROGRAM.—Section 401 (20 U.S.C. 1070a), as amended by 

10 subsections (a) through (f), is further amended by adding 

11 at the end the following: 

12 ‘‘(l) REPORT ON COSTS OF FEDERAL PELL GRANT

13 PROGRAM.—Not later than October 31 of each year, the Sec14 retary shall prepare and submit a report to the authorizing 

15 committees that includes the following information with re16 spect to spending for the Federal Pell Grant program for 

17 the preceding fiscal year: 

18 ‘‘(1) The total obligations and expenditures for 

19 the program for such fiscal year. 

20 ‘‘(2) A comparison of the total obligations and 

21 expenditures for the program for such fiscal year— 

22 ‘‘(A) to the most recently available Congres23 sional Budget Office baseline for the program; 

24 and 


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1 ‘‘(B) in the case in which such fiscal year 

2 is fiscal year 2019, 2020, 2021, 2022, 2023, or 

3 2024, to the Congressional Budget Office cost es4 timate for the program included in the report of 

5 the Committee on Education and the Workforce 

6 of the House of Representatives accompanying 

7 the PROSPER Act, as approved by the Com8 mittee. 

9 ‘‘(3) The total obligations and expenditures for 

10 the maximum Federal Pell Grant for which a student 

11 is eligible, as specified in the last enacted appropria12 tion Act applicable to such fiscal year. 

13 ‘‘(4) A comparison of the total obligations and 

14 expenditures for the maximum Federal Pell Grant for 

15 which a student is eligible, as specified in the last en16 acted appropriation Act applicable to such fiscal 

17 year— 

18 ‘‘(A) to the most recently available Congres19 sional Budget Office baseline for such maximum 

20 Federal Pell Grant; and 

21 ‘‘(B) in the case in which such fiscal year 

22 is fiscal year 2019, 2020, 2021, 2022, 2023, or 

23 2024, to the Congressional Budget Office cost es24 timate for such maximum Federal Pell Grant in25 cluded in the report of the Committee on EduVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 cation and the Workforce of the House of Rep2 resentatives accompanying the PROSPER Act, 

3 as approved by the Committee. 

4 ‘‘(5) The total mandatory obligations and ex5 penditures for the amount of the increase in such 

6 maximum Federal Pell Grant required by subsection 

7 (b)(7)(B) for such fiscal year. 

8 ‘‘(6) A comparison of the total mandatory obli9 gations and expenditures for the amount of the in10 crease in such maximum Federal Pell Grant required 

11 by subsection (b)(7)(B)— 

12 ‘‘(A) to the most recently available Congres13 sional Budget Office baseline for the increase; 

14 and 

15 ‘‘(B) in the case in which such fiscal year 

16 is fiscal year 2019, 2020, 2021, 2022, 2023, or 

17 2024, to the Congressional Budget Office cost es18 timate for the increase included in the report of 

19 the Committee on Education and the Workforce 

20 of the House of Representatives accompanying 

21 the PROSPER Act, as approved by the Com22 mittee. 

23 ‘‘(7) The total mandatory obligations and ex24 penditures for the Federal Pell Grant Bonus required 

25 by subsection (b)(9) for such fiscal year. 


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1 ‘‘(8) A comparison of the total mandatory obli2 gations and expenditures for the Federal Pell Grant 

3 Bonus required by subsection (b)(9) for such fiscal 

4 year— 

5 ‘‘(A) to the most recently available Congres6 sional Budget Office baseline for such bonus; and 

7 ‘‘(B) in the case in which such fiscal year 

8 is fiscal year 2019, 2020, 2021, 2022, 2023, or 

9 2024, to the Congressional Budget Office cost es10 timate for such bonus included in the report of 

11 the Committee on Education and the Workforce 

12 of the House of Representatives accompanying 

13 the PROSPER Act, as approved by the Com14 mittee.’’. 

15 (h) STUDY ON FEDERAL PELL GRANT BONUS.—Sec16 tion 401 (20 U.S.C. 1070a), as amended by subsections (a) 

17 through (g), is further amended by adding at the end the 

18 following: 

19 ‘‘(m) REPORT AND STUDY ON FEDERAL PELL GRANT

20 BONUS.— 

21 ‘‘(1) REPORT.— 

22 ‘‘(A) IN GENERAL.—The Secretary shall re23 port annually, in accordance with subparagraph 

24 (C), on the Federal Pell Grant Bonus required 

25 by subsection (b)(9). 


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1 ‘‘(B) ELEMENTS.—Each report required 

2 under subparagraph (A) shall include an assess3 ment of the following: 

4 ‘‘(i) The number of students who re5 ceived the Federal Pell Grant Bonus under 

6 subsection (b)(9). 

7 ‘‘(ii) Of the students counted under 

8 clause (i)— 

9 ‘‘(I) the number of such students 

10 who obtained a degree or certificate 

11 within the normal time to completion 

12 for the program for which the Federal 

13 Pell Grant Bonus was awarded; and 

14 ‘‘(II) the number of such students 

15 who obtained a degree or certificate— 

16 ‘‘(aa) within 4 years of be17 ginning the program of study for 

18 which the Federal Pell Grant 

19 Bonus was awarded; 

20 ‘‘(bb) within 5 years of be21 ginning such program of study; 

22 and 

23 ‘‘(cc) within 6 years of begin24 ning such program of study. 

25 ‘‘(C) SUBMISSION OF REPORTS.— 


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1 ‘‘(i) INITIAL REPORT.—Not later than 

2 one year after the first cohort of students de3 scribed in subparagraph (B)(i) is expected 

4 to complete their program of study, the Sec5 retary shall submit to the authorizing com6 mittees an initial report under subpara7 graph (A). 

8 ‘‘(ii) ANNUAL UPDATES.—On an an9 nual basis, the Secretary shall update the 

10 report under subparagraph (A) and submit 

11 the updated report to the authorizing com12 mittees. 

13 ‘‘(2) STUDY.—Not later than 18 months after the 

14 date of the submission of the initial report under 

15 paragraph (1)(C)(i), the Comptroller General of the 

16 United States shall complete a study on the impact 

17 of the Federal Pell Grant Bonus required under sub18 section (b)(9). The study shall include an assessment 

19 of the following: 

20 ‘‘(A) Of the students who received the Fed21 eral Pell Grant Bonus, the number of such stu22 dents who had a lower volume of student loans 

23 upon completion of their program of study com24 pared to students who received a Federal Pell 


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1 Grant but did not receive the Federal Pell Grant 

2 Bonus. 

3 ‘‘(B) Whether students who received the 

4 Federal Pell Grant Bonus took an increased 

5 courseload as a result of the availability of the 

6 Federal Pell Grant Bonus. 

7 ‘‘(C) The completion rate of students who 

8 received the Federal Pell Grant Bonus compared 

9 to the completion rate of students who did not 

10 receive the bonus.’’. 

11 SEC. 402. FEDERAL TRIO PROGRAMS. 

12 (a) PROGRAM AUTHORITY; AUTHORIZATION OF AP13 PROPRIATIONS.—Section 402A (20 U.S.C. 1070a–11) is 

14 amended— 

15 (1) in subsection (c)— 

16 (A) by amending subparagraph (A) of 

17 paragraph (2) to read as follows: 

18 ‘‘(A) ACCOUNTABILITY FOR OUTCOMES.—In 

19 making grants under this chapter, the Secretary 

20 shall comply with the following requirements: 

21 ‘‘(i) The Secretary shall consider each 

22 applicant’s prior success in achieving high 

23 quality service delivery, as determined 

24 under subsection (f), under the particular 

25 program for which funds are sought. The 


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1 level of consideration given the factor of 

2 prior success in achieving high quality serv3 ice delivery shall not vary from the level of 

4 consideration given such factor during fiscal 

5 years 1994 through 1997, except that grants 

6 made under section 402H shall not be given 

7 such consideration. 

8 ‘‘(ii) The Secretary shall not give 

9 points for prior success in achieving high 

10 quality service delivery to any current 

11 grantee that, during the then most recent 

12 period for which funds were provided, did 

13 not meet or exceed two or more objectives es14 tablished in the eligible entity’s application 

15 based on the performance measures de16 scribed in subsection (f). 

17 ‘‘(iii) From the amounts awarded 

18 under subsection (g) for a program under 

19 this chapter (other than a program under 

20 sections 402G and 402H) for any fiscal 

21 year in which the Secretary conducts a 

22 competition for the award of grants or con23 tracts under such programs, the Secretary 

24 shall reserve not less than 10 percent of such 

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1 tracts to applicants who have not previously 

2 received a grant or contract under this 

3 chapter. If the Secretary determines that 

4 there are an insufficient number of quali5 fied applicants to use the full amount re6 served under the preceding sentence, the 

7 Secretary shall use the remainder of such 

8 amount to award grants or contracts to ap9 plicants who have previously received a 

10 grant or contract under this chapter.’’; 

11 (B) in paragraph (3)— 

12 (i) in subparagraph (A)— 

13 (I) by striking ‘‘as provided in 

14 subparagraph (B)’’ and inserting ‘‘as 

15 provided in subparagraph (C)’’; 

16 (II) by striking ‘‘experience’’ and 

17 inserting ‘‘success in achieving high 

18 quality service delivery’’; 

19 (ii) by redesignating subparagraph (B) 

20 as subparagraph (C); and 

21 (iii) by inserting after subparagraph 

22 (A) the following new subparagraph: 

23 ‘‘(B) To ensure that congressional priorities in 

24 conducting competitions for grants and contracts 

25 under this chapter are implemented, the Secretary 


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1 shall not impose additional criteria for the 

2 prioritization of applications for such grants or con3 tracts (including additional competitive, absolute, or 

4 other criteria) beyond the criteria described in this 

5 chapter.’’; 

6 (C) in paragraph (6)— 

7 (i) by striking the period at the end of 

8 the second sentence and inserting ‘‘, as long 

9 as the program is serving a different popu10 lation or a different campus.’’; 

11 (ii) by striking ‘‘the programs author12 ized by’’ and inserting ‘‘sections 402B, 

13 402C, 402D, and 402F of’’; 

14 (iii) by striking ‘‘The Secretary shall 

15 encourage’’ and inserting the following: 

16 ‘‘(A) The Secretary shall encourage’’; 

17 (iv) by striking ‘‘The Secretary shall 

18 permit’’ and inserting the following: 

19 ‘‘(B) The Secretary shall permit’’; 

20 (D) in paragraph (7), by striking ‘‘8 

21 months’’ each place it appears and inserting ‘‘90 

22 days’’; 

23 (E) in paragraph (8)— 

24 (i) in subparagraph (A)— 


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1 (I) in the matter preceding clause 

2 (i), by striking ‘‘Not later than 180 

3 days after the date of enactment of the 

4 Higher Education Opportunity Act,’’ 

5 and inserting ‘‘Not later than 90 days 

6 before the commencement of each com7 petition for a grant under this chap8 ter,’’; 

9 (II) in clause (iii), by striking 

10 ‘‘prior experience points for high qual11 ity service delivery are awarded’’ and 

12 inserting ‘‘application scores are ad13 justed for prior success in achieving 

14 high quality service delivery’’; and 

15 (III) in clause (v), by striking 

16 ‘‘prior experience points for’’ and in17 serting ‘‘the adjustment in scores for 

18 prior success in achieving’’; 

19 (ii) by striking subparagraph (B) and 

20 redesignating subparagraph (C) as subpara21 graph (B); and 

22 (iii) in subparagraph (B), as so redes23 ignated— 

24 (I) in clause (iii)— 


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1 (aa) in the matter preceding 

2 subclause (I), by striking ‘‘prior 

3 experience points for’’ and insert4 ing ‘‘points for prior success in 

5 achieving’’; and 

6 (bb) in subclause (II), by 

7 striking ‘‘prior experience points’’ 

8 and inserting ‘‘points for prior 

9 success in achieving high quality 

10 service delivery’’; and 

11 (II) in clause (vi), by inserting 

12 before the period at the end the fol13 lowing: ‘‘from funds reserved under 

14 subsection (g)’’; and 

15 (F) by adding at the end the following: 

16 ‘‘(9) MATCHING REQUIREMENT.— 

17 ‘‘(A) IN GENERAL.—The Secretary shall not 

18 approve an application submitted under section 

19 402B, 402C, 402D, 402E, or 402F unless such 

20 application— 

21 ‘‘(i) provides that the eligible entity 

22 will provide, from State, local, institutional, 

23 or private funds, not less than 20 percent of 

24 the cost of the program, which matching 

25 funds may be provided in cash or in kind 


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1 and may be accrued over the full duration 

2 of the grant award period, except that the 

3 eligible entity shall make substantial 

4 progress towards meeting the matching re5 quirement in each year of the grant award 

6 period; 

7 ‘‘(ii) specifies the methods by which 

8 matching funds will be paid; and 

9 ‘‘(iii) includes provisions designed to 

10 ensure that funds provided under this chap11 ter shall supplement and not supplant 

12 funds expended for existing programs. 

13 ‘‘(B) SPECIAL RULE.—Notwithstanding the 

14 matching requirement described in subparagraph 

15 (A), the Secretary may by regulation modify the 

16 percentage requirement described in subpara17 graph (A). The Secretary may approve an eligi18 ble entity’s request for a reduced match percent19 age— 

20 ‘‘(i) at the time of application if the el21 igible entity demonstrates significant eco22 nomic hardship that precludes the eligible 

23 entity from meeting the matching require24 ment; or 


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1 ‘‘(ii) in response to a petition by an el2 igible entity subsequent to a grant award 

3 under section 402B, 402C, 402D, 402E, or 

4 402F if the eligible entity demonstrates that 

5 the matching funds described in its applica6 tion are no longer available and the eligible 

7 entity has exhausted all revenues for replac8 ing such matching funds.’’. 

9 (2) in subsection (d)(3), by adding at the end the 

10 following new sentence: ‘‘In addition, the Secretary 

11 shall host at least one virtual, interactive education 

12 session using telecommunications technology to ensure 

13 that any interested applicants have access to technical 

14 assistance.’’; 

15 (3) in subsection (e)— 

16 (A) in paragraph (1)— 

17 (i) in subparagraph (C), by striking 

18 ‘‘or’’ at the end; 

19 (ii) in subparagraph (D), by striking 

20 the period at the end and inserting ‘‘; or’’; 

21 and 

22 (iii) by adding at the end the following 

23 new subparagraph: 


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1 ‘‘(E) documentation that the student has been de2 termined to be eligible for a Federal Pell Grant under 

3 section 401.’’; and 

4 (B) in paragraph (2)— 

5 (i) in subparagraph (C), by striking 

6 ‘‘or’’ at the end; 

7 (ii) in subparagraph (D), by striking 

8 the period at the end and inserting ‘‘; or’’; 

9 and 

10 (iii) by adding at the end the following 

11 new subparagraph: 

12 ‘‘(E) documentation that the student has been de13 termined to be eligible for a Federal Pell Grant under 

14 section 401.’’; 

15 (4) in subsection (f)— 

16 (A) in the heading of paragraph (1), by 

17 striking ‘‘PRIOR EXPERIENCE’’ and inserting 

18 ‘‘ACCOUNTABILITY FOR OUTCOMES’’; 

19 (B) in paragraph (1) by striking ‘‘experi20 ence of’’ and inserting ‘‘success in achieving’’; 

21 (C) in paragraph (3)— 

22 (i) in subparagraph (A)— 

23 (I) in clause (iv) by striking ‘‘rig24 orous secondary school program of 

25 study that will make such students eliVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00182 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 gible for programs such as the Aca2 demic Competitiveness Grants Pro3 gram’’ and inserting ‘‘secondary school 

4 program of study that will prepare 

5 such students to enter postsecondary 

6 education without the need for reme7 dial education’’; 

8 (II) by redesignating clauses (v) 

9 and (vi) as clauses (vi) and (vii), re10 spectively; and 

11 (III) by inserting after clause (iv) 

12 the following new clause: 

13 ‘‘(v) the completion of financial aid 

14 applications, including the Free Applica15 tion for Federal Student Aid described in 

16 section 483(a) and college admission appli17 cations;’’; 

18 (ii) in subparagraph (B)— 

19 (I) by redesignating clauses (i), 

20 (ii), (iii), (iv), (v), (vi), and (vii) as 

21 subclauses (I), (II), (III), (IV), (VI), 

22 (VIII), and (IX), respectively; 

23 (II) by inserting after subclause 

24 (IV), as so redesignated, the following: 


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1 ‘‘(V) the enrollment of such stu2 dents into a general educational devel3 opment (commonly known as a ‘GED’) 

4 program;’’. 

5 (III) in subclause (VI), as so re6 designated, by striking ‘‘rigorous sec7 ondary school program of study that 

8 will make such students eligible for 

9 programs such as the Academic Com10 petitiveness Grants Program’’ and in11 serting ‘‘secondary school program of 

12 study that will prepare such students 

13 to enter postsecondary education with14 out the need for remedial education’’; 

15 (IV) by inserting after subclause 

16 (VI), as so redesignated, the following 

17 new subclause: 

18 ‘‘(VII) the completion of financial aid 

19 applications, including the Free Applica20 tion for Federal Student Aid described in 

21 section 483(a) and college admission appli22 cations;’’; 

23 (V) by striking ‘‘(B) For pro24 grams authorized under section 402C,’’ 

25 and inserting ‘‘(B)(i) For programs 


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1 authorized under section 402C, except 

2 in the case of projects that specifically 

3 target veterans,’’; and 

4 (VI) by adding at the end the fol5 lowing new clause: 

6 ‘‘(ii) For programs authorized under section 

7 402C that specifically target veterans, the extent 

8 to which the eligible entity met or exceeded the 

9 entity’s objectives for such program with respect 

10 to— 

11 ‘‘(I) the delivery of service to a total 

12 number of students served by the program, 

13 as agreed upon by the entity and the Sec14 retary for the period; 

15 ‘‘(II) such students’ academic perform16 ance, as measured by standardized tests; 

17 ‘‘(III) the retention and completion of 

18 participants in the project; 

19 ‘‘(IV) the provision of assistance to stu20 dents served by the program in completing 

21 financial aid applications, including the 

22 Free Application for Federal Student Aid 

23 described in section 483(a) and college ad24 mission applications; 


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1 ‘‘(V) the enrollment of such students in 

2 an institution of higher education; and 

3 ‘‘(VI) to the extent practicable, the 

4 postsecondary education completion rate of 

5 such students.’’; 

6 (iii) in subparagraph (C)(ii)— 

7 (I) in subclause (I), by striking 

8 ‘‘in which such students were enrolled’’ 

9 and inserting ‘‘within six years of the 

10 initial enrollment of such students in 

11 the program’’; 

12 (II) in subclause (II); 

13 (aa) in the matter preceding 

14 item (aa), by striking ‘‘offer a 

15 baccalaureate degree’’ and insert16 ing ‘‘primarily offer baccalaureate 

17 degrees’’; and 

18 (bb) in item (aa), by striking 

19 ‘‘students; and’’ and inserting 

20 ‘‘students within 4 years of the 

21 initial enrollment of such students 

22 in the program; or’’; 

23 (iv) in subparagraph (D)— 


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1 (I) in clause (iii), by striking ‘‘; 

2 and’’ and inserting ‘‘within two years 

3 of receiving a baccalaureate degree;’’; 

4 (II) in clause (iv), by striking 

5 ‘‘study and’’ and all that follows 

6 through the period and inserting 

7 ‘‘study; and’’; and 

8 (III) by adding at the end the fol9 lowing new clause: 

10 ‘‘(v) the attainment of doctoral degrees 

11 by former program participants within 10 

12 years of receiving a baccalaureate degree.’’; 

13 and 

14 (v) in subparagraph (E)(ii), by insert15 ing ‘‘, or re-enrollment,’’ after ‘‘enrollment’’; 

16 (5) in subsection (g)— 

17 (A) in the first sentence, by striking 

18 ‘‘$900,000,000 for fiscal year 2009 and such 

19 sums as may be necessary for’’ and inserting 

20 ‘‘$900,000,000 for fiscal year 2019 and’’; 

21 (B) in the second sentence— 

(i) by striking ‘‘no more than 1 22 ⁄2 of 1’’ 

23 and inserting ‘‘not more than 1’’; 


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1 (ii) by striking ‘‘and to provide tech2 nical’’ and inserting ‘‘to provide technical’’; 

3 and 

4 (iii) by inserting before the period at 

5 the end the following: ‘‘, and to support ap6 plications funded under the process outlined 

7 in subsection (c)(8)(B)’’; and 

8 (C) by striking the last sentence; and 

9 (6) in subsection (h)— 

10 (A) by striking ‘‘(5) VETERAN ELIGI11 BILITY.—No veteran’’ and inserting the fol12 lowing: 

13 ‘‘(i) VETERAN ELIGIBILITY.—(1) No Veteran’’; 

14 (B) in paragraph (6), by striking ‘‘of para15 graph (5)’’ and inserting ‘‘of paragraph (1)’’; 

16 (C) by striking ‘‘(6) WAIVER.—The Sec17 retary’’ and inserting the following: 

18 ‘‘(2) The Secretary’’. 

19 (b) TALENT SEARCH.—Section 402B (20 U.S.C. 

20 1070a–12) is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (2), by striking ‘‘and’’ at 

23 the end; 

24 (B) by redesignating paragraph (3) as 

25 paragraph (4); and 


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1 (C) by inserting after paragraph (2) the fol2 lowing new paragraph: 

3 ‘‘(3) to advise such youths on the postsecondary 

4 institution selection process, including consideration 

5 of the financial aid awards offered and the potential 

6 loan burden required; and’’; 

7 (2) in subsection (b)— 

8 (A) in paragraph (1), by inserting ‘‘and, 

9 where necessary, remedial education services’’ 

10 after ‘‘academic tutoring services’’; and 

11 (B) by striking paragraph (6) and inserting 

12 the following: 

13 ‘‘(6) connections to education or counseling serv14 ices designed to— 

15 ‘‘(A) improve the financial literacy and eco16 nomic literacy of students or the students’ par17 ents in order to aid them in making informed 

18 decisions about how to best finance their postsec19 ondary education; and 

20 ‘‘(B) assist students and families regarding 

21 career choice.’’; 

22 (3) in subsection (c)(2), by striking ‘‘career’’ and 

23 inserting ‘‘academic’’; and 

24 (4) in subsection (d)— 


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1 (A) by redesignating paragraphs (2), (3), 

2 and (4) as paragraphs (3), (4), and (5), respec3 tively; 

4 (B) by inserting after paragraph (1) the fol5 lowing new paragraph: 

6 ‘‘(2) require an assurance that the remaining 

7 youths participating in the project proposed to be car8 ried out in any application be low-income individ9 uals, first generation college students, or students who 

10 have a high risk for academic failure;’’; 

11 (C) in paragraph (4), as so redesignated— 

12 (i) by inserting ‘‘, section 402C,’’ after 

13 ‘‘under this section’’; and 

14 (ii) by striking ‘‘and’’ at the end; 

15 (D) in paragraph (5), as so redesignated, by 

16 striking the period at the end and inserting ‘‘; 

17 and’’; and 

18 (E) by adding at the end the following: 

19 ‘‘(6) require the grantee to maintain, to the ex20 tent practicable, a record of any services participants 

21 receive during the project year from another program 

22 under this chapter or other federally funded programs 

23 serving similar populations to minimize the duplica24 tion of services.’’. 


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1 (c) UPWARD BOUND.—Section 402C (20 U.S.C. 

2 1070a–13) is amended— 

3 (1) in subsection (b)— 

4 (A) by striking paragraph (1) and insert5 ing: 

6 ‘‘(1) academic tutoring, which may include in7 struction in reading, writing, study skills, mathe8 matics, science, and other subjects and, where nec9 essary, remedial education services, to enable students 

10 to complete secondary or postsecondary courses;’’. 

11 (B) in paragraph (4), by adding ‘‘and’’ at 

12 the end; and 

13 (C) by striking paragraphs (5) and (6) and 

14 inserting the following: 

15 ‘‘(5) education or counseling services designed 

16 to— 

17 ‘‘(A) improve the financial literacy and eco18 nomic literacy of students or the students’ par19 ents in order to aid them in making informed 

20 decisions about how to best finance their postsec21 ondary education; and 

22 ‘‘(B) assist students and their families re23 garding career choice.’’; 

24 (2) in subsection (d)— 


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1 (A) in paragraph (1), by striking ‘‘youth’’ 

2 and inserting ‘‘participants’’; 

3 (B) in paragraph (2), by striking ‘‘youth 

4 participating in the project’’ and inserting 

5 ‘‘project participants’’; and 

6 (C) in paragraph (5), by striking ‘‘youth 

7 participating in the project’’ and inserting 

8 ‘‘project participants’’; 

9 (3) in subsection (e)— 

10 (A) in paragraph (4), by striking ‘‘and’’ at 

11 the end; 

12 (B) by redesignating paragraph (5) as 

13 paragraph (6); and 

14 (C) by inserting after paragraph (4) the fol15 lowing: 

16 ‘‘(5) require an assurance that individuals par17 ticipating in the project proposed in any application 

18 do not have access to services from another project 

19 funded under this section, section 402B, or section 

20 402F;’’; 

21 (D) in paragraph (6), as so redesignated, by 

22 striking the period at the end and inserting ‘‘; 

23 and’’; and 

24 (E) by adding at the end the following: 


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1 ‘‘(7) for purposes of minimizing the duplication 

2 of services, require that the grantee maintain, to the 

3 extent practicable, a record of any services received by 

4 participants during the program year from another 

5 program funded under this chapter, or any other Fed6 erally funded program that serves populations similar 

7 to the populations served by programs under this 

8 chapter.’’. 

9 (4) by striking subsection (g) and redesignating 

10 subsection (h) as subsection (g). 

11 (d) STUDENT SUPPORT SERVICES.—Section 402D (20 

12 U.S.C. 1070a–14) is amended— 

13 (1) in subsection (a)(3), by inserting ‘‘low-in14 come and first generation college students, including’’ 

15 after ‘‘success of’’; 

16 (2) in subsection (b)(4)— 

17 (A) by striking ‘‘, including financial’’ and 

18 inserting ‘‘, including— 

19 ‘‘(A) financial’’; and 

20 (B) by adding at the end the following: 

21 ‘‘(B) basic personal income, household 

22 money management, and financial planning 

23 skills; and 

24 ‘‘(C) basic economic decisionmaking skills;’’; 

25 and 


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1 (3) in subsection (e)— 

2 (A) in paragraph (5), by striking ‘‘and’’ at 

3 the end; 

4 (B) by redesignating paragraph (6) as 

5 paragraph (7); 

6 (C) by inserting after paragraph (5) the fol7 lowing: 

8 ‘‘(6) require the grantee to maintain, to the ex9 tent practicable, a record of any services participants 

10 receive during the project year from another program 

11 under this chapter or other federally funded programs 

12 serving similar populations to minimize the duplica13 tion of services; and’’. 

14 (e) POSTBACCALAUREATE ACHIEVEMENT PROGRAM

15 AUTHORITY.—Section 402E (20 U.S.C. 1070a–15) is 

16 amended— 

17 (1) in subsection (b)(2), by striking ‘‘summer in18 ternships’’ and inserting ‘‘internships and faculty-led 

19 research experiences’’; and 

20 (2) in subsection (d)— 

21 (A) in paragraph (3), by striking ‘‘and’’ at 

22 the end; 

23 (B) in paragraph (4)— 

24 (i) by striking ‘‘summer’’; 


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1 (ii) by striking the period at the end 

2 and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(5) the grantee to maintain, to the extent prac5 ticable, a record of any services participants receive 

6 during the project year from another program under 

7 this chapter or other federally funded program serving 

8 similar populations to minimize the duplication of 

9 services.’’; and 

10 (3) in subsection (g), by striking ‘‘2009 through 

11 2014’’ and inserting ‘‘2019 through 2024’’. 

12 (f) EDUCATIONAL OPPORTUNITY CENTERS.—Section 

13 402F (20 U.S.C. 1070a–16) is amended— 

14 (1) in subsection (a)— 

15 (A) in paragraph (1), by inserting ‘‘or re16 enter’’ after ‘‘pursue’’; and 

17 (B) in paragraph (3), by striking ‘‘of stu18 dents’’ and inserting ‘‘of such persons’’; 

19 (2) in subsection (b)(5), by striking ‘‘students;’’ 

20 and inserting the following: ‘‘students, including— 

21 ‘‘(A) financial planning for postsecondary 

22 education; 

23 ‘‘(B) basic personal income, household 

24 money management, and financial planning 

25 skills; and 


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1 ‘‘(C) basic economic decisionmaking skills;’’; 

2 and 

3 (3) in subsection (c)— 

4 (A) by redesignating paragraphs (2) and 

5 (3) as paragraphs (3) and (4), respectively; and 

6 (B) by inserting after paragraph (1) the fol7 lowing new paragraph: 

8 ‘‘(2) require an assurance that the remaining 

9 persons participating in the project proposed to be 

10 carried out under any application be low-income in11 dividuals or first generation college students;’’; 

12 (C) in paragraph (3), as so redesignated, by 

13 striking ‘‘and’’ at the end; 

14 (D) in paragraph (4), as so redesignated, by 

15 striking the period at the end and inserting ‘‘; 

16 and’’; and 

17 (E) by adding at the end the following: 

18 ‘‘(5) require the grantee to maintain, to the ex19 tent practicable, a record of any services participants 

20 receive during the project year from another program 

21 under this chapter or other federally funded program 

22 serving similar populations to minimize the duplica23 tion of services.’’. 

24 (g) STAFF DEVELOPMENT ACTIVITIES.—Section 

25 402G(b) (20 U.S.C. 1070a–17(b)) is amended— 


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1 (1) in the matter preceding paragraph (1)— 

2 (A) by inserting ‘‘webinars and online 

3 classes,’’ after ‘‘seminars, workshops,’’; and 

4 (B) by striking ‘‘directors’’ and inserting 

5 ‘‘staff’’; and 

6 (2) in paragraph (3), by inserting ‘‘and innova7 tive’’ after ‘‘model’’. 

8 (h) REPORTS, EVALUATIONS, AND GRANTS FOR

9 PROJECT IMPROVEMENT AND DISSEMINATION.—Subsection 

10 (b) of section 402H (20 U.S.C. 1070a–18) is amended to 

11 read as follows: 

12 ‘‘(b) EVALUATIONS.— 

13 ‘‘(1) IN GENERAL.—For the purpose of improv14 ing the effectiveness of the programs assisted under 

15 this chapter, the Secretary shall make grants to or 

16 enter into contracts with one or more organizations 

17 to— 

18 ‘‘(A) evaluate the effectiveness of the pro19 grams assisted under this chapter; and 

20 ‘‘(B) disseminate information on the impact 

21 of the programs in increasing the education level 

22 of participants, as well as other appropriate 

23 measures. 

24 ‘‘(2) ISSUES TO BE EVALUATED.—The evalua25 tions described in paragraph (1) shall measure the efVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00197 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 fectiveness of programs funded under this chapter 

2 in— 

3 ‘‘(A) meeting or exceeding the stated objec4 tives regarding the outcome criteria under sub5 section (f) of section 402A; 

6 ‘‘(B) enhancing the access of low-income in7 dividuals and first-generation college students to 

8 postsecondary education; 

9 ‘‘(C) preparing individuals for postsec10 ondary education; 

11 ‘‘(D) comparing the level of education com12 pleted by students who participate in the pro13 grams funded under this chapter with the level 

14 of education completed by students of similar 

15 backgrounds who do not participate in such pro16 grams; 

17 ‘‘(E) comparing the retention rates, dropout 

18 rates, graduation rates, and college admission 

19 and completion rates of students who participate 

20 in the programs funded under this chapter with 

21 the rates of students of similar backgrounds who 

22 do not participate in such programs; and 

23 ‘‘(F) such other issues as the Secretary con24 siders appropriate for inclusion in the evalua25 tion. 


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1 ‘‘(3) PROGRAM METHODS.—Such evaluations 

2 shall also investigate the effectiveness of alternative 

3 and innovative methods within programs funded 

4 under this chapter of increasing access to, and reten5 tion of, students in postsecondary education. 

6 ‘‘(4) RESULTS.—The Secretary shall submit to 

7 the authorizing committees— 

8 ‘‘(A) an interim report on the progress and 

9 preliminary results of the evaluation of each pro10 gram funded under this chapter not later than 2 

11 years following the date of enactment of the 

12 PROSPER Act; and 

13 ‘‘(B) a final report not later than 3 years 

14 following the date of enactment of such Act. 

15 ‘‘(5) PUBLIC AVAILABILITY.—All reports and un16 derlying data gathered pursuant to this subsection 

17 shall be made available to the public upon request, in 

18 a timely manner following submission of the applica19 ble reports under this subsection, except that any per20 sonally identifiable information with respect to a stu21 dent participating in a program or project assisted 

22 under this chapter shall not be disclosed or made 

23 available to the public.’’. 


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1 (i) IMPACT GRANTS.—Part A of title IV (20 U.S.C. 

2 1070 et seq.) is amended by inserting after section 402H 

3 (20 U.S.C. 1070a–28) the following: 

4 ‘‘SEC. 402I. IMPACT GRANTS. 

5 ‘‘(a) IN GENERAL.—From funds reserved under sub6 section (e), the Secretary shall make grants to improve post7 secondary access and completion rates for qualified individ8 uals from disadvantaged backgrounds. These grants shall be 

9 known as innovative measures promoting postsecondary ac10 cess and completion grants or ‘IMPACT Grants’ and allow 

11 eligible entities to— 

12 ‘‘(1) create, develop, implement, replicate, or take 

13 to scale evidence-based, field-initiated innovations, in14 cluding through pay-for-success initiatives, to serve 

15 qualified individuals from disadvantaged backgrounds 

16 and improve student outcomes; and 

17 ‘‘(2) rigorously evaluate such innovations, in ac18 cordance with subsection (d). 

19 ‘‘(b) DESCRIPTION OF GRANTS.—The grants described 

20 in subsection (a) shall include— 

21 ‘‘(1) early-phase grants to fund the development, 

22 implementation, and feasibility testing of a program, 

23 which prior research suggests has a promise, for the 

24 purpose of determining whether the program can sucVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00200 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 cessfully improve postsecondary access and completion 

2 rates; 

3 ‘‘(2) mid-phase grants to fund implementation 

4 and a rigorous evaluation of a program that has been 

5 successfully implemented under an early-phase grant 

6 described in paragraph (1); and 

7 ‘‘(3) expansion grants to fund implementation 

8 and a rigorous replication evaluation of a program 

9 that has been found to produce sizable, important im10 pacts under a mid-phase grant described in para11 graph (2) for the purposes of— 

12 ‘‘(A) determining whether such outcomes 

13 can be successfully reproduced and sustained 

14 over time; and 

15 ‘‘(B) identifying the conditions in which the 

16 project is most effective. 

17 ‘‘(c) REQUIREMENTS FOR APPROVAL OF APPLICA18 TIONS.—To receive a grant under this section, an eligible 

19 entity shall submit an application to the Secretary at such 

20 time, and in such manner as the Secretary may require, 

21 which shall include— 

22 ‘‘(1) an assurance that not less than two-thirds 

23 of the individuals who will participate in the pro24 gram proposed to be carried out with the grant will 

25 be— 


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1 ‘‘(A) low-income individuals who are first 

2 generation college students; or 

3 ‘‘(B) individuals with disabilities; 

4 ‘‘(2) an assurance that any other individuals 

5 (not described in paragraph (1)) who will participate 

6 in such proposed program will be— 

7 ‘‘(A) low-income individuals; 

8 ‘‘(B) first generation college students; or 

9 ‘‘(C) individuals with disabilities; 

10 ‘‘(3) a detailed description of the proposed pro11 gram, including how such program will directly ben12 efit students; 

13 ‘‘(4) the number of projected students to be served 

14 by the program; 

15 ‘‘(5) how the program will be evaluated; and 

16 ‘‘(6) an assurance that the individuals partici17 pating in the project proposed are individuals who do 

18 not have access to services from another programs 

19 funded under this section. 

20 ‘‘(d) EVALUATION.—Each eligible entity receiving a 

21 grant under this section shall conduct an independent eval22 uation of the effectiveness of the program carried out with 

23 such grant and shall submit to the Secretary, on an annual 

24 basis, a report that includes— 


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1 ‘‘(1) a description of how funds received under 

2 this section were used; 

3 ‘‘(2) the number of students served by the project 

4 carried out under this section; and 

5 ‘‘(3) a quantitative analysis of the effectiveness of 

6 the project. 

7 ‘‘(e) FUNDING.—From amounts appropriated under 

8 section 402A(g), the Secretary shall reserve not less than 

9 10 percent of such funds to carry out this section.’’. 

10 SEC. 403. GAINING EARLY AWARENESS AND READINESS 

11 FOR UNDERGRADUATE PROGRAMS. 

12 (a) EARLY INTERVENTION AND COLLEGE AWARENESS

13 PROGRAM.—Section 404A (20 U.S.C. 1070a–21) is amend14 ed— 

15 (1) in subsection (a)(1), by striking ‘‘academic 

16 support’’ and inserting ‘‘academic support for college 

17 readiness’’; 

18 (2) in subsection (b)— 

19 (A) in paragraph (1), by inserting ‘‘new’’ 

20 before ‘‘awards’’; and 

21 (B) in paragraph (3)— 

22 (i) by amending subparagraph (A) to 

23 read as follows: 

24 ‘‘(A) give priority to eligible entities that 

25 have a prior, demonstrated commitment to early 


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1 intervention leading to college access and readi2 ness through collaboration and replication of 

3 successful strategies; and’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘the Higher Education Opportunity Act’’ 

6 and inserting ‘‘the PROSPER Act’’; and 

7 (C) by adding at the end the following: 

8 ‘‘(4) MULTIPLE AWARD PROHIBITION.—Eligible 

9 entities described in subsection (c)(1) that receive a 

10 grant under this chapter shall not be eligible to re11 ceive an additional grant under this chapter until 

12 after the date on which the initial grant period ex13 pires.’’. 

14 (3) in subsection (c)(2)(B), by striking ‘‘institu15 tions or agencies sponsoring programs authorized 

16 under subpart 4,’’. 

17 (b) APPLICATIONS.—Section 404C (20 U.S.C. 1070a– 

18 23) is amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (2)— 

21 (i) in the matter preceding subpara22 graph (A)— 

23 (I) by striking ‘‘, contain or be 

24 accompanied by such information or 

25 assurances,’’; and 


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1 (II) by striking ‘‘, at a min2 imum’’; 

3 (ii) by amending subparagraph (B) to 

4 read as follows: 

5 ‘‘(B) describe, in the case of an eligible enti6 ty described in section 404A(c)(2) that chooses to 

7 provide scholarships, or an eligible entity de8 scribed in section 404A(c)(1)— 

9 ‘‘(i) the eligible entity’s plan to estab10 lish or maintain a financial assistance pro11 gram in accordance with the requirements 

12 of section 404E, including any eligibility 

13 criteria other than the criteria described in 

14 section 404E(g), such as— 

15 ‘‘(I) demonstrating financial need; 

16 ‘‘(II) meeting and maintaining 

17 satisfactory academic progress; and 

18 ‘‘(III) other criteria aligned with 

19 State and local goals to increase post20 secondary readiness, access, and com21 pletion; and 

22 ‘‘(ii) how the eligible entity will meet 

23 the other requirements of section 404E;’’; 

24 (iii) by striking subparagraph (H); 

25 and 


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1 (iv) by redesignating subparagraphs 

2 (I) and (J) as subparagraphs (H) and (I), 

3 respectively; and 

4 (2) in subsection (b), by striking paragraph (2) 

5 and inserting the following: 

6 ‘‘(2) SPECIAL RULE.—Notwithstanding the 

7 matching requirement described in paragraph (1)(A), 

8 the Secretary may— 

9 ‘‘(A) at the time of application— 

10 ‘‘(i) approve a Partnership applicant’s 

11 request for a waiver of up to 75 percent of 

12 the matching requirement for up to two 

13 years if the applicant demonstrates in its 

14 application a significant economic hardship 

15 that stems from a specific, exceptional, or 

16 uncontrollable event, such as a natural dis17 aster, that has a devastating effect on the 

18 members of the Partnership and the commu19 nity in which the project would operate; 

20 ‘‘(ii)(I) approve a Partnership appli21 cant’s request to waive up to 50 percent of 

22 the matching requirement for up to two 

23 years if the applicant demonstrates in its 

24 application a pre-existing and an on-going 

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1 cludes the applicant from meeting its 

2 matching requirement; and 

3 ‘‘(II) provide tentative approval of an 

4 applicant’s request for a waiver under sub5 clause (I) for all remaining years of the 

6 project period; 

7 ‘‘(iii) approve a Partnership appli8 cant’s request in its application to match 

9 its contributions to its scholarship fund, es10 tablished under section 404E, on the basis 

11 of two non-Federal dollars for every one dol12 lar of Federal funds provided under this 

13 chapter; or 

14 ‘‘(iv) approve a request by a Partner15 ship applicant that has three or fewer insti16 tutions of higher education as members to 

17 waive up to 70 percent of the matching re18 quirement if the Partnership applicant in19 cludes— 

20 ‘‘(I) a fiscal agent that is eligible 

21 to receive funds under title V, or part 

22 B of title III, or section 316 or 317, or 

23 a local educational agency; 

24 ‘‘(II) only participating schools 

25 with a 7th grade cohort in which at 


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1 least 75 percent of the students are eli2 gible for free or reduced-price lunch 

3 under the Richard B. Russell National 

4 School Lunch Act; and 

5 ‘‘(III) only local educational 

6 agencies in which at least 50 percent of 

7 the students enrolled are eligible for 

8 free or reduced-price lunch under the 

9 Richard B. Russell National School 

10 Lunch Act; and 

11 ‘‘(B) after a grant is awarded, approve a 

12 Partnership grantee’s written request for a waiv13 er of up to— 

14 ‘‘(i) 50 percent of the matching re15 quirement for up to two years if the grantee 

16 demonstrates that— 

17 ‘‘(I) the matching contributions 

18 described for those two years in the 

19 grantee’s approved application are no 

20 longer available; and 

21 ‘‘(II) the grantee has exhausted all 

22 funds and sources of potential con23 tributions for replacing the matching 

24 funds; or 


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1 ‘‘(ii) 75 percent of the matching re2 quirement for up to two years if the grantee 

3 demonstrates that matching contributions 

4 from the original application are no longer 

5 available due to an uncontrollable event, 

6 such as a natural disaster, that has a dev7 astating economic effect on members of the 

8 Partnership and the community in which 

9 the project would operate. 

10 ‘‘(3) ADDITIONAL TERMS.— 

11 ‘‘(A) ON-GOING ECONOMIC HARDSHIP.—In 

12 determining whether a Partnership applicant is 

13 experiencing an on-going economic hardship that 

14 is significant enough to justify a waiver under 

15 subparagraphs (A)(i) and (A)(ii)(I) of para16 graph (2), the Secretary may consider docu17 mentation of the following: 

18 ‘‘(i) Severe distress in the local econ19 omy of the community to be served by the 

20 grant (e.g., there are few employers in the 

21 local area, large employers have left the 

22 local area, or significant reductions in em23 ployment in the local area). 

24 ‘‘(ii) Local unemployment rates that 

25 are higher than the national average. 


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1 ‘‘(iii) Low or decreasing revenues for 

2 State and County governments in the area 

3 to be served by the grant. 

4 ‘‘(iv) Significant reductions in the 

5 budgets of institutions of higher education 

6 that are participating in the grant. 

7 ‘‘(v) Other data that reflect a signifi8 cant economic hardship for the geographical 

9 area served by the applicant. 

10 ‘‘(B) EXHAUSTION OF FUNDS.—In deter11 mining whether a Partnership grantee has ex12 hausted all funds and sources of potential con13 tributions for replacing matching funds under 

14 paragraph (2)(B), the secretary may consider the 

15 grantee’s documentation of key factors that have 

16 had a direct impact on the grantee such as the 

17 following: 

18 ‘‘(i) A reduction of revenues from State 

19 government, County government, or the 

20 local educational agency. 

21 ‘‘(ii) An increase in local unemploy22 ment rates. 

23 ‘‘(iii) Significant reductions in the op24 erating budgets of institutions of higher 


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1 education that are participating in the 

2 grant. 

3 ‘‘(iv) A reduction of business activity 

4 in the local area (e.g., large employers have 

5 left the local area). 

6 ‘‘(v) Other data that reflect a signifi7 cant decrease in resources available to the 

8 grantee in the local geographical area served 

9 by the grantee. 

10 ‘‘(C) RENEWAL OF WAIVER.—A Partnership 

11 applicant that receives a tentative approval of a 

12 waiver under subparagraph (A)(ii)(II) of para13 graph (2) for more than two years under this 

14 paragraph must submit to the Secretary every 

15 two years by such time as the Secretary may di16 rect documentation that demonstrates that— 

17 ‘‘(i) the significant economic hardship 

18 upon which the waiver was granted still ex19 ists; and 

20 ‘‘(ii) the grantee tried diligently, but 

21 unsuccessfully, to obtain contributions need22 ed to meet the matching requirement. 

23 ‘‘(D) MULTIPLE WAIVERS.—If a grantee has 

24 received one or more waivers under paragraph 

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1 er of the matching requirement under this sub2 section not earlier than 60 days before the expi3 ration of the grantee’s existing waiver.’’. 

4 (c) ACTIVITIES.—Section 404D (20 U.S.C. 1070a–24) 

5 is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (1), by striking ‘‘finan8 cial aid for’’ and inserting ‘‘financial aid, in9 cluding loans, grants, scholarships, and institu10 tional aid for’’; 

11 (B) in paragraph (2) by striking ‘‘rigorous 

12 and challenging curricula and coursework, in 

13 order to’’ and inserting ‘‘curricula and 

14 coursework designed to’’; 

15 (C) by redesignating paragraphs (3) and 

16 (4) as paragraphs (5) and (6), respectively; 

17 (D) by inserting after paragraph (2) the fol18 lowing: 

19 ‘‘(3) Providing information to students and fam20 ilies about the advantages of obtaining a postsec21 ondary education. 

22 ‘‘(4) Providing tutors and mentors, who may in23 clude adults or former participants of a program 

24 under this chapter, for use by eligible students in 

25 need.’’; 


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1 (E) in paragraph (5), as so redesignated, by 

2 striking ‘‘Improving’’ and inserting ‘‘Providing 

3 supportive services to improve’’; and 

4 (2) in subsection (b)— 

5 (A) by striking paragraph (1); and 

6 (B) by redesignating paragraphs (2) 

7 through (15) as paragraphs (1) through (14), re8 spectively; 

9 (C) in paragraph (3), as so redesignated, by 

10 striking ‘‘rigorous’’ each place it appears; 

11 (D) in paragraph (9), as so redesignated— 

12 (i) by redesignating subparagraphs (E) 

13 through (K) as subparagraphs (F) through 

14 (L), respectively; 

15 (ii) by inserting after subparagraph 

16 (D) the following: 

17 ‘‘(E) providing counseling or referral serv18 ices to address the behavioral, social-emotional, 

19 and mental health needs of at-risk students;’’; 

20 (iii) in subparagraph (I), as so redes21 ignated, by striking ‘‘skills assessments’’ 

22 and inserting ‘‘skills, cognitive, non-cog23 nitive, and credit-by-examination assess24 ments’’; 


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1 (iv) in subparagraph (K), as so redes2 ignated, by striking ‘‘and’’ at the end; 

3 (v) in subparagraph (L), as so redesig4 nated, by striking the period at the end and 

5 inserting ‘‘; and’’; and 

6 (vi) by adding at the end the following: 

7 ‘‘(M) capacity building activities that create 

8 college-going cultures in participating schools 

9 and local education agencies.’’; and 

10 (E) by adding at the end the following: 

11 ‘‘(15) Creating or expanding drop-out recovery 

12 programs that allow individuals who drop out of 

13 school to complete a regular secondary school diploma 

14 and begin college-level work.’’; 

15 (3) in subsection (c)— 

16 (A) in paragraph (3), by inserting ‘‘and 

17 technical assistance’’ after ‘‘administrative sup18 port’’; and 

19 (B) by striking paragraph (9); and 

20 (4) in subsection (e), by striking ‘‘institutions 

21 and agencies sponsoring programs authorized under 

22 subpart 4,’’. 

23 (d) SCHOLARSHIP REQUIREMENTS.—Section 404E 

24 (20 U.S.C. 1070a–25) is amended— 


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1 (1) in subsection (a)(1), by inserting ‘‘described 

2 in section 404C(a)(2)(B)(i)’’ after ‘‘financial assist3 ance program’’; and 

4 (2) in subsection (e)(1), by striking ‘‘an amount’’ 

5 and all that follows through the period at the end and 

6 inserting the following: ‘‘an estimated amount that is 

7 based on the requirements of the financial assistance 

8 program of the eligible entity described in section 

9 404C(a)(2)(B)(i).’’ 

10 (e) EVALUATION AND REPORT.—Section 404G(b) (20 

11 U.S.C. 1070a–27(b)) is amended— 

12 (1) in paragraph (1), by striking ‘‘and’’ at the 

13 end; 

14 (2) in paragraph (2), by striking the period at 

15 the end and inserting ‘‘; and’’ 

16 (3) by adding after paragraph (2) the following: 

17 ‘‘(3) include the following metrics: 

18 ‘‘(A) the number of students completing the 

19 Free Application for Federal Student Aid; 

20 ‘‘(B) the enrollment of participating stu21 dents in curricula and coursework designed to 

22 reduce the need for remedial coursework at the 

23 postsecondary level; 

24 ‘‘(C) if applicable, the number of students 

25 receiving a scholarship; 


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1 ‘‘(D) the graduation rate of participating 

2 students from high school; 

3 ‘‘(E) the enrollment of participating stu4 dents into postsecondary education; and 

5 ‘‘(F) such other information as the Sec6 retary may require.’’. 

7 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

8 404H (20 U.S.C. 1070a–28) is amended by striking 

9 ‘‘$400,000,000 for fiscal year 2009 and such sums as may 

10 be necessary for each of the five succeeding fiscal years’’ and 

11 inserting ‘‘$339,754,000 for fiscal year 2019 and each of 

12 the five succeeding fiscal years’’. 

13 SEC. 404. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMI14 LIES ARE ENGAGED IN MIGRANT AND SEA15 SONAL FARMWORK. 

16 Section 418A(i) (20 U.S.C. 1070d—2(i)) is amended 

17 by striking ‘‘$75,000,000’’ and all that follows through the 

18 period at the end and inserting ‘‘$44,623,000 for each of 

19 fiscal years 2019 through 2024.’’. 

20 SEC. 405. CHILD CARE ACCESS MEANS PARENTS IN 

21 SCHOOL. 

22 Section 419N (20 U.S.C. 1070e) is amended— 

23 (1) in the heading of paragraph (6) of subsection 

24 (b), by striking ‘‘CONSTRUCTION’’ and inserting 

25 ‘‘RULE OF CONSTRUCTION’’; and 


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1 (2) in subsection (c)— 

2 (A) in paragraph (4), by striking ‘‘assisted’’ 

3 and inserting ‘‘funded’’; 

4 (B) in paragraph (5)— 

5 (i) by striking ‘‘resources, including 

6 technical expertise’’ and inserting ‘‘re7 sources, including non-Federal resources, 

8 technical expertise,’’; 

9 (ii) by striking ‘‘the use of the’’ and in10 serting ‘‘these’’; and 

11 (C) in paragraph (9)— 

12 (i) by inserting ‘‘provisional status,’’ 

13 after ‘‘approval,’’; and 

14 (ii) by striking ‘‘; and’’ and inserting 

15 ‘‘prior to serving children and families; 

16 and’’; 

17 (3) in subsection (d)— 

18 (A) in paragraph (1)— 

19 (i) by striking ‘‘local’’ and inserting 

20 ‘‘non-Federal, local,’’; and 

21 (ii) by striking ‘‘and’’ at the end; 

22 (B) in paragraph (2), by striking the period 

23 at the end and inserting ‘‘; and’’; and 

24 (C) by adding at the end the following: 


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1 ‘‘(3) coordinate with other community programs 

2 where appropriate to improve the quality and limit 

3 cost of the campus-based program.’’; 

4 (4) by amending subsection (e) to read as fol5 lows: 

6 ‘‘(e) REPORTING REQUIREMENTS; CONTINUING ELIGI7 BILITY.— 

8 ‘‘(1) REPORTING REQUIREMENTS.— 

9 ‘‘(A) REPORTS.—Each institution of higher 

10 education receiving a grant under this section 

11 shall report to the Secretary annually. The Sec12 retary shall annually publish such reports on a 

13 publicly accessible website of the Department of 

14 Education. 

15 ‘‘(B) CONTENTS.—Each report shall in16 clude— 

17 ‘‘(i) data on the population served 

18 under this section, including the total num19 ber of children and families served; 

20 ‘‘(ii) information on sources of campus 

21 and community resources and the amount 

22 of non-Federal funding used to help low-in23 come students access child care services on 

24 campus; 


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1 ‘‘(iii) documentation that the program 

2 meets applicable licensing, certification, ap3 proval, or registration requirements; and 

4 ‘‘(iv) a description of how funding was 

5 used to pursue the goals of this section de6 termined by the institution under subsection 

7 (c). 

8 ‘‘(2) CONTINUING ELIGIBILITY.—The Secretary 

9 shall make continuation awards under this section to 

10 an institution of higher education only if the Sec11 retary determines, on the basis of the reports sub12 mitted under paragraph (1) and the application from 

13 the institution, that the institution is— 

14 ‘‘(A) using funds only for authorized pur15 poses; 

16 ‘‘(B) providing low-income students at the 

17 institution with priority access to affordable, 

18 quality child care services as provided under this 

19 section; and 

20 ‘‘(C) documenting a continued need for Fed21 eral funding under this section, while dem22 onstrating how non-federal sources will be lever23 aged to support a continuation award.’’; and 

24 (5) in subsection (g), by striking ‘‘such sums as 

25 may be necessary for fiscal year 2009 and each of the 


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1 five succeeding fiscal years’’ and inserting 

2 ‘‘$15,134,000 for each of fiscal years 2019 through 

3 2024’’. 

4 SEC. 406. REPEALS. 

5 (a) ACADEMIC COMPETITIVENESS GRANTS.—Section 

6 401A (20 U.S.C. 1070a–1) is repealed. 

7 (b) FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR8 TUNITY GRANTS.— 

9 (1) REPEAL.—Subpart 3 of part A of title IV 

10 (20 U.S.C. 1070b et seq.) is repealed. 

11 (2) EFFECTIVE DATE.—The repeal made by 

12 paragraph (1) shall take effect on June 30, 2018. 

13 (3) APPROPRIATIONS.—Notwithstanding para14 graphs (1) and (2), sums appropriated under section 

15 413A for fiscal year 2018 shall be available for pay16 ments to institutions of higher education under such 

17 section (as in effect on June 29, 2018) until the end 

18 of fiscal year 2019. 

19 (c) LEVERAGING EDUCATIONAL ASSISTANCE PART20 NERSHIP PROGRAM.—Subpart 4 of part A of title IV (20 

21 U.S.C. 1070c et seq.) is repealed. 

22 (d) ROBERT C. BYRD HONORS SCHOLARSHIP PRO23 GRAM.—Subpart 6 of part A of title IV (20 U.S.C. 1070d– 

24 31 et seq.) is repealed. 


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1 SEC. 407. SUNSET OF TEACH GRANTS. 

2 Subpart 9 of part A of title IV (20 U.S.C. 1070g) is 

3 amended— 

4 (1) in section 420L(1) (20 U.S.C. 1070g(1), by 

5 striking ‘‘section 102’’ and inserting ‘‘section 102 (as 

6 in effect on the day before the date of enactment of 

7 the PROSPER Act)’’; 

8 (2) in section 420N (20 U.S.C. 1070g–2)— 

9 (A) by amending subparagraph (B) of sub10 section (b)(1) to read as follows: 

11 ‘‘(B) teach— 

12 ‘‘(i) in a public or other nonprofit pri13 vate elementary school or secondary school, 

14 which, for the purpose of this paragraph 

15 and for that year— 

16 ‘‘(I) has been determined by the 

17 Secretary (pursuant to regulations of 

18 the Secretary and after consultation 

19 with the State educational agency of 

20 the State in which the school is lo21 cated) to be a school in which the num22 ber of children meeting a measure of 

23 poverty under section 1113(a)(5) of the 

24 Elementary and Secondary Education 

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1 ceeds 30 percent of the total number of 

2 children enrolled in such school; and 

3 ‘‘(II) is in the school district of a 

4 local educational agency which is eligi5 ble in such year for assistance pursu6 ant to part A of title I of the Elemen7 tary and Secondary Education Act of 

8 1965 (20 U.S.C. 6311 et seq.); or 

9 ‘‘(ii) in one or more public, or non10 profit private, elementary schools or sec11 ondary schools or locations operated by an 

12 educational service agency that have been 

13 determined by the Secretary (pursuant to 

14 regulations of the Secretary and after con15 sultation with the State educational agency 

16 of the State in which the educational service 

17 agency operates) to be a school or location 

18 at which the number of children taught who 

19 meet a measure of poverty under section 

20 1113(a)(5) of the Elementary and Sec21 ondary Education Act of 1965 (20 U.S.C. 

22 6313(a)(5)), exceeds 30 percent of the total 

23 number of children taught at such school or 

24 location;’’; and 


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1 (B) in subsection (c), by inserting ‘‘(as in 

2 effect on the day before the date of the enactment 

3 of the PROSPER Act)’’ after ‘‘part D of title 

4 IV’’; 

5 (3) in section 420M(a) (20 U.S.C. 1070g–1), by 

6 adding at the end the following: 

7 ‘‘(3) TERMINATION.— 

8 ‘‘(A) TERMINATION OF PROGRAM AUTHOR9 ITY.—Except as provided in paragraph (4), no 

10 new grants may be made under this subpart 

11 after June 30, 2018. 

12 ‘‘(B) LIMITATION ON FUNDS.— 

13 ‘‘(i) IN GENERAL.—No funds are au14 thorized to be appropriated, and no funds 

15 may be obligated or expended under this 

16 Act or any other Act, to make a grant to a 

17 new recipient under this subpart. 

18 ‘‘(ii) NEW RECIPIENT DEFINED.—For 

19 purposes of this subparagraph, the term 

20 ‘new recipient’ means a teacher candidate 

21 who has not received a grant under this 

22 subpart for which the first disbursement 

23 was on or before June 30, 2018. 

24 ‘‘(4) STUDENT ELIGIBILITY BEGINNING WITH

25 AWARD YEAR 2018.—With respect to a recipient of a 


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1 grant under this subpart for which the first disburse2 ment was made on or before June 30, 2018, such re3 cipient may receive additional grants under this sub4 part until the earlier of— 

5 ‘‘(A) the date on which the recipient com6 pletes the course of study for which the recipient 

7 received the grant for which the first disburse8 ment was made on or before June 30, 2018; or 

9 ‘‘(B) the date on which the recipient receives 

10 the total amount that the recipient may receive 

11 under this subpart in accordance with subsection 

12 (d).’’; and 

13 (4) in section 420O (20 U.S.C. 1070g–3)— 

14 (A) by striking ‘‘2008’’ and inserting 

15 ‘‘2008, and ending on June 30, 2018’’; and 

16 (B) by adding at the end the following: 

17 ‘‘Except as provided in section 420M(a)(4), no 

18 funds shall be available to the Secretary to carry 

19 out this subpart after June 30, 2018.’’. 

20 PART B—FEDERAL FAMILY EDUCATION LOAN 

21 PROGRAM 

22 SEC. 421. FEDERAL DIRECT CONSOLIDATION LOANS. 

23 Section 428C (20 U.S.C. 1078–3) is amended— 

24 (1) in subsection (a)(4)(B), by inserting before 

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1 fore the date of enactment of the PROSPER Act and 

2 pursuant to section 461(a) of such Act’’; and 

3 (2) in subsection (b)(1)(F)(ii)— 

4 (A) in the matter preceding subclause (I), 

5 by inserting ‘‘, as in effect on the day before the 

6 date of enactment of the PROSPER Act and 

7 pursuant to section 461(a) of such Act’’ after 

8 ‘‘part E’’; 

9 (B) in subclause (I), in the matter pre10 ceding item (aa), by inserting ‘‘, as so in effect,’’ 

11 after ‘‘part E’’; 

12 (C) in subclause (I)(bb), by inserting ‘‘, as 

13 so in effect’’ after ‘‘section 464(c)(1)(A)’’; 

14 (D) in subclause (II), by inserting ‘‘, as so 

15 in effect’’ after ‘‘section 465(a)’’; and 

16 (E) in subclause (III)— 

17 (i) by inserting ‘‘, as so in effect’’ after 

18 ‘‘section 465’’; and 

19 (ii) by inserting ‘‘, as so in effect’’ 

20 after ‘‘465(a)’’. 

21 SEC. 422. LOAN REHABILITATION. 

22 Section 428F(a)(5) (20 U.S.C. 1078–6) is amended by 

23 striking ‘‘one time’’ and inserting ‘‘two times’’. 


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1 SEC. 423. LOAN FORGIVENESS FOR TEACHERS. 

2 Section 428J(b)(1)(A) (20 U.S.C. 1078–10(b)(1)(A)) is 

3 amended by striking ‘‘that qualifies under section 

4 465(a)(2)(A) for loan cancellation for Perkins loan recipi5 ents who teach in such schools or locations’’ and inserting 

6 ‘‘described in section 420N(b)(1)(B)’’. 

7 SEC. 424. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 

8 NATIONAL NEED. 

9 Section 428K (20 U.S.C. 1078–11) is amended— 

10 (1) in subsection (b)— 

11 (A) in paragraph (4)(B), by striking ‘‘that 

12 qualifies under section 465(a)(2)(A) for loan 

13 cancellation for Perkins loan recipients who 

14 teach in such a school’’ and inserting ‘‘described 

15 in section 420N(b)(1)(B)’’; 

16 (B) in paragraph (5)(B)(ii), by striking 

17 ‘‘that qualifies under section 465(a)(2)(A) for 

18 loan cancellation for Perkins loan recipients who 

19 teach in such a school’’ and inserting ‘‘described 

20 in section 420N(b)(1)(B)’’; 

21 (C) in paragraph (7)(A), by striking ‘‘that 

22 qualifies under section 465(a)(2)(A) for loan 

23 cancellation for Perkins loan recipients who 

24 teach in such a school’’ and inserting ‘‘described 

25 in section 420N(b)(1)(B)’’; 


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1 (D) in paragraph (8)(B), by striking ‘‘that 

2 qualifies under section 465(a)(2)(A) for loan 

3 cancellation for Perkins loan recipients who 

4 teach in such a school’’ and inserting ‘‘described 

5 in section 420N(b)(1)(B)’’ ; and 

6 (E) in paragraph (16), by striking ‘‘that 

7 qualify under section 465(a)(2)(A) for loan can8 cellation for Perkins loan recipients who teach in 

9 such a school’’ and inserting ‘‘described in sec10 tion 420N(b)(1)(B)’’; and 

11 (2) in subsection (g)(6)(B), by striking ‘‘that 

12 qualifies under section 465(a)(2)(A) for loan cancella13 tion for Perkins loan recipients who teach in such a 

14 school’’ and inserting ‘‘described in section 

15 420N(b)(1)(B)’’. 

16 SEC. 425. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 

17 ATTORNEYS. 

18 Section 428L(b)(2)(A) (20 U.S.C. 1078–12(b)(2)(A)) is 

19 amended— 

20 (1) in clause (i), by inserting before the semi21 colon at the end ‘‘, as in effect on the day before the 

22 date of enactment of the PROSPER Act and pursu23 ant to section 461(a) of such Act’’; and 

24 (2) in clause (ii)(III), by inserting ‘‘, as in effect 

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1 PER Act and pursuant to section 461(a) of such Act’’ 

2 after ‘‘part E’’; 

3 SEC. 426. SUNSET OF COHORT DEFAULT RATE AND OTHER 

4 CONFORMING CHANGES. 

5 (a) REQUIREMENTS FOR THE SECRETARY.—Section 

6 430(e) (20 U.S.C. 1080(e)) is amended by adding at the 

7 end the following: 

8 ‘‘(4) SUNSET.—The Secretary shall not be subject 

9 to the requirements of this subsection after the transi10 tion period described in section 481B(e)(3).’’. 

11 (b) ELIGIBLE INSTITUTION DEFINED.—Section 435 

12 (20 U.S.C. 1085) is amended— 

13 (1) in subsection (a)— 

14 (A) in paragraph (1), by striking ‘‘section 

15 102’’ and inserting ‘‘sections 101 and 102’’; and 

16 (B) by adding at the end the following: 

17 ‘‘(9) SUNSET.—No institution shall be subject to 

18 paragraph (2) after the transition period described in 

19 section 481B(e)(3).’’; 

20 (2) in subsection (m), by adding at the end the 

21 following: 

22 ‘‘(5) TRANSITION PERIOD; SUNSET.— 

23 ‘‘(A) TRANSITION PERIOD.—During the 

24 transition period, the cohort default rate for an 


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1 institution shall be calculated in the manner de2 scribed in section 481B(e)(1). 

3 ‘‘(B) SUNSET.—The Secretary shall not be 

4 subject, and no institution shall be subject, to the 

5 requirements of this subsection after the transi6 tion period. 

7 ‘‘(C) DEFINITION.—In this paragraph, the 

8 term ‘transition period’ has the meaning given 

9 the term in section 481B(e)(3).’’; and 

10 (3) in subsection (o)(1), by inserting ‘‘, as in ef11 fect on the day before the date of enactment of the 

12 PROSPER Act and pursuant to section 461(a) of 

13 such Act’’ after ‘‘part E’’. 

14 SEC. 427. ADDITIONAL DISCLOSURES. 

15 Section 433(a) (20 U.S.C. 1083(a)) is amended— 

16 (1) in the matter preceding paragraph (1), by 

17 striking the second sentence and inserting ‘‘Any dis18 closure required by this subsection shall be made on 

19 the Plain Language Disclosure Form developed by the 

20 Secretary under section 455(p).’’; 

21 (2) in paragraph (4), by striking ‘‘the origina22 tion fee and’’ and inserting ‘‘finance charges, the 

23 origination fee, and’’; 

24 (3) by redesignating paragraphs (6) through (19) 

25 as paragraphs (7) through (20), respectively; and 


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1 (4) by inserting after paragraph (5), the fol2 lowing: 

3 ‘‘(6) the annual percentage rate of the loan, as 

4 calculated using the standard 10-year repayment 

5 term, and how interest accrues and is capitalized 

6 during periods when the interest is not paid by the 

7 borrower;’’. 

8 SEC. 428. CLOSED SCHOOL AND OTHER DISCHARGES. 

9 Section 437(c) (20 U.S.C. 1087) is amended— 

10 (1) in paragraph (1), by inserting ‘‘and the bor11 rower meets the applicable requirements of para12 graphs (6) through (8),’’ after ‘‘such student’s lend13 er,’’; 

14 (2) in paragraph (4), by inserting before the pe15 riod at the end ‘‘, as in effect on the day before the 

16 date of enactment of the PROSPER Act and pursu17 ant to section 461(a) of such Act’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(6) BORROWER QUALIFICATIONS FOR A CLOSED

20 SCHOOL DISCHARGE.— 

21 ‘‘(A) IN GENERAL.—In order to qualify for 

22 the discharge of a loan under this subsection due 

23 to the closure of the institution in which the bor24 rower was enrolled, a borrower shall submit to 


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1 the Secretary a written request and sworn state2 ment— 

3 ‘‘(i) that contains true factual asser4 tions; 

5 ‘‘(ii) that is made by the borrower 

6 under penalty of perjury, and that may or 

7 may not be notarized; 

8 ‘‘(iii) under which the borrower (or the 

9 student on whose behalf a parent borrowed) 

10 states— 

11 ‘‘(I) that the borrower or the stu12 dent— 

13 ‘‘(aa) received, on or after 

14 January 1, 1986, the proceeds of 

15 a loan made, insured, or guaran16 teed under this title to attend a 

17 program of study at an institu18 tion of higher education; 

19 ‘‘(bb)(AA) did not complete 

20 the program of study because the 

21 institution closed while the stu22 dent was enrolled; or 

23 ‘‘(BB) the student withdrew 

24 from the institution not more 

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1 tion closed, or in the case of excep2 tional circumstances described in 

3 subparagraph (B), not more than 

4 the period by which such 120-day 

5 period is extended under such sub6 paragraph; and 

7 ‘‘(cc) attempted but was un8 able to complete the program of 

9 study through a teach-out at an10 other institution or by transfer11 ring academic credits or hours 

12 earned at the closed institution to 

13 another institution; 

14 ‘‘(II) whether the borrower (or the 

15 student) has made a claim with respect 

16 to the institutions’s closing with any 

17 third party, such as the holder of a 

18 performance bond or a tuition recovery 

19 program, and, if so, the amount of any 

20 payment received by the borrower (or 

21 the student) or credited to the bor22 rower’s loan obligation; and 

23 ‘‘(III) that the borrower (or the 

24 student)— 


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1 ‘‘(aa) agrees to provide to the 

2 Secretary or the holder of the loan 

3 upon request other documentation 

4 reasonably available to the bor5 rower that demonstrates that the 

6 borrower meets the qualifications 

7 for discharge under this sub8 section; and 

9 ‘‘(bb) agrees to cooperate 

10 with the Secretary in enforcement 

11 actions in accordance with sub12 paragraph (C) and to transfer 

13 any right to recovery against a 

14 third party to the Secretary in 

15 accordance with subparagraph 

16 (D). 

17 ‘‘(B) EXCEPTIONAL CIRCUMSTANCES.— 

18 ‘‘(i) IN GENERAL.—The Secretary may 

19 extend the 120-day period described in sub20 paragraph (A)(iii)(I)(bb)(BB) if the Sec21 retary determines that exceptional cir22 cumstances related to an institution’s clos23 ing justify an extension. 

24 ‘‘(ii) DEFINITION.—For purposes of 

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1 cumstances’, when used with respect to an 

2 institution that closed, includes the loss of 

3 accreditation of institution, the 

4 institutions’s discontinuation of the major5 ity of its academic programs, action by the 

6 State to revoke the institution’s license to 

7 operate or award academic credentials in 

8 the State, or a finding by a State or Fed9 eral Government agency that the institution 

10 violated State or Federal law. 

11 ‘‘(C) COOPERATION BY BORROWER IN EN12 FORCEMENT ACTIONS.— 

13 ‘‘(i) IN GENERAL.—In order to obtain 

14 a discharge described in subparagraph (A), 

15 a borrower shall cooperate with the Sec16 retary in any judicial or administrative 

17 proceeding brought by the Secretary to re18 cover amounts discharged or to take other 

19 enforcement action with respect to the con20 duct on which the discharge was based. At 

21 the request of the Secretary and upon the 

22 Secretary’s tendering to the borrower the 

23 fees and costs that are customarily provided 

24 in litigation to reimburse witnesses, the bor25 rower shall— 


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1 ‘‘(I) provide testimony regarding 

2 any representation made by the bor3 rower to support a request for dis4 charge; 

5 ‘‘(II) produce any documents rea6 sonably available to the borrower with 

7 respect to those representations; and 

8 ‘‘(III) if required by the Sec9 retary, provide a sworn statement re10 garding those documents and represen11 tations. 

12 ‘‘(ii) DENIAL OF REQUEST FOR DIS13 CHARGE.—The Secretary shall deny the re14 quest for such a discharge or revoke the dis15 charge of a borrower who— 

16 ‘‘(I) fails to provide the testimony, 

17 documents, or a sworn statement re18 quired under clause (i); or 

19 ‘‘(II) provides testimony, docu20 ments, or a sworn statement that does 

21 not support the material representa22 tions made by the borrower to obtain 

23 the discharge. 


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1 ‘‘(D) TRANSFER TO THE SECRETARY OF

2 BORROWER’S RIGHT OF RECOVERY AGAINST

3 THIRD PARTIES.— 

4 ‘‘(i) IN GENERAL.—Upon receiving a 

5 discharge described in subparagraph (A) of 

6 a loan, the borrower shall be deemed to have 

7 assigned to and relinquished in favor of the 

8 Secretary any right to a loan refund for 

9 such loan (up to the amount discharged) 

10 that the borrower (or student) may have by 

11 contract or applicable law with respect to 

12 the loan or the enrollment agreement for the 

13 program for which the loan was received, 

14 against the institution, its principals, its 

15 affiliates and their successors, its sureties, 

16 and any private fund, including the portion 

17 of a public fund that represents funds re18 ceived from a private party. 

19 ‘‘(ii) APPLICATION.—The provisions of 

20 this subsection apply notwithstanding any 

21 provision of State law that would otherwise 

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1 tion that would prejudice the Secretary’s 

2 ability to recover on such rights. 

3 ‘‘(iii) RULE OF CONSTRUCTION.—Noth4 ing in this subsection shall limit or foreclose 

5 the borrower’s (or student’s) right to pursue 

6 legal and equitable relief regarding disputes 

7 arising from matters unrelated to the dis8 charged loan. 

9 ‘‘(E) DISCHARGE PROCEDURES.— 

10 ‘‘(i) IN GENERAL.—After confirming 

11 the date of an institution’s closure, the Sec12 retary shall identify any borrower (or stu13 dent on whose behalf a parent borrowed) 

14 who appears to have been enrolled at the in15 stitution on the closure date of the institu16 tion or to have withdrawn not more than 

17 120 days prior to the closure date (or in the 

18 case of exceptional circumstances described 

19 in subparagraph (B), not more than the pe20 riod by which such 120-day period is ex21 tended under such subparagraph. In the 

22 case of a loan made, insured, or guaranteed 

23 under this part, a guaranty agency shall 

24 notify the Secretary immediately whenever 


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1 it becomes aware of reliable information in2 dicating an institution may have closed. 

3 ‘‘(ii) BORROWER ADDRESS.— 

4 ‘‘(I) KNOWN.—If the borrower’s 

5 current address is known, the Sec6 retary shall mail the borrower a dis7 charge application and an explanation 

8 of the qualifications and procedures for 

9 obtaining a discharge. The Secretary 

10 or the guaranty agency shall promptly 

11 suspend any efforts to collect from the 

12 borrower on any affected loan. The 

13 Secretary may continue to receive bor14 rower payments of the loan for which 

15 the discharge application has been 

16 filed. 

17 ‘‘(II) UNKNOWN.—If the bor18 rower’s current address is unknown, 

19 the Secretary shall attempt to locate 

20 the borrower and determine the bor21 rower’s potential eligibility for a dis22 charge described in subparagraph (A) 

23 by consulting with representatives of 

24 the closed institution, the institution’s 

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1 crediting agency, and other appro2 priate parties. If the Secretary learns 

3 the new address of a borrower, the Sec4 retary shall mail to the borrower a dis5 charge application and explanation, 

6 and shall suspend collection on the 

7 loan, as described in subclause (I). 

8 ‘‘(iii) SWORN STATEMENT.—If a bor9 rower fails to submit the written request 

10 and sworn statement described subpara11 graph (A) not later than 60 days after date 

12 on which the Secretary mails the discharge 

13 application under clause (ii), the Sec14 retary— 

15 ‘‘(I) shall resume collection on the 

16 loan and grant forbearance of prin17 cipal and interest for the period in 

18 which collection activity was sus19 pended; and 

20 ‘‘(II) may capitalize any interest 

21 accrued and not paid during such pe22 riod. 

23 ‘‘(iv) NOTIFICATION.— 

24 ‘‘(I) QUALIFICATIONS MET.—If 

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1 rower who requests a discharge de2 scribed in subparagraph (A) meets the 

3 qualifications for such a discharge, the 

4 Secretary shall— 

5 ‘‘(aa) notify the borrower in 

6 writing of that determination; 

7 and 

8 ‘‘(bb) not regard a borrower 

9 who has defaulted on a loan that 

10 has been so discharged as in de11 fault on the loan after such dis12 charge, and such a borrower shall 

13 be eligible to receive assistance 

14 under this title. 

15 ‘‘(II) QUALIFICATIONS NOT

16 MET.—If the Secretary determines that 

17 a borrower who requests a discharge 

18 described in subparagraph (A) does not 

19 meet the qualifications for such a dis20 charge, the Secretary or guaranty 

21 agency shall resume collection on the 

22 loan and notify the borrower in writ23 ing of that determination and the rea24 sons for the determination. 


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1 ‘‘(7) BORROWER QUALIFICATIONS FOR A FALSE

2 CERTIFICATION DISCHARGE.— 

3 ‘‘(A) APPLICATION.— 

4 ‘‘(i) IN GENERAL.—In order to qualify 

5 for false certification discharge under this 

6 subsection, the borrower shall submit to the 

7 Secretary, on a form approved by the Sec8 retary, an application for discharge that— 

9 ‘‘(I) does not need not be nota10 rized, but shall be made by the bor11 rower under penalty of perjury; and 

12 ‘‘(II) demonstrates to the satisfac13 tion of the Secretary that the require14 ments in subparagraphs (B) through 

15 (G) have been met. 

16 ‘‘(ii) NOTIFICATION.—If the Secretary 

17 determines the application does not meet the 

18 requirements of clause (i), the Secretary 

19 shall notify the applicant and explain why 

20 the application does not meet the require21 ments. 

22 ‘‘(B) HIGH SCHOOL DIPLOMA OR EQUIVA23 LENT.—In the case of a borrower requesting a 

24 false certification discharge based on not having 

25 had a high school diploma and not having met 


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1 the alternative to graduation from high school 

2 eligibility requirements under section 484(d) ap3 plicable at the time the loan was originated, and 

4 the institution or a third party to which the in5 stitution referred the borrower falsified the stu6 dent’s high school diploma, the borrower shall 

7 state in the application that the borrower (or the 

8 student on whose behalf a parent borrowed)— 

9 ‘‘(i) reported not having a valid high 

10 school diploma or its equivalent at the time 

11 the loan was certified; and 

12 ‘‘(ii) did not satisfy the alternative to 

13 graduation from high school statutory or 

14 regulatory eligibility requirements identi15 fied on the application form and applicable 

16 at the time the institution certified the loan. 

17 ‘‘(C) DISQUALIFYING CONDITION.—In the 

18 case of a borrower requesting a false certification 

19 discharge based on a condition that would dis20 qualify the borrower from employment in the oc21 cupation that the program for which the bor22 rower received the loan was intended, the bor23 rower shall state in the application that the bor24 rower (or student on whose behalf the parent bor25 rowed) did not meet State requirements for emVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00242 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ployment (in the student’s State of residence) in 

2 the occupation that the program for which the 

3 borrower received the loan was intended because 

4 of a physical or mental condition, age, criminal 

5 record, or other reason accepted by the Secretary. 

6 ‘‘(D) UNAUTHORIZED LOAN.—In the case of 

7 a borrower requesting a discharge under this 

8 subsection because the institution signed the bor9 rower’s name on the loan application or promis10 sory note without the borrower’s authorization, 

11 the borrower shall— 

12 ‘‘(i) state that the borrower did not 

13 sign the document in question or authorize 

14 the institution to do so; and 

15 ‘‘(ii) provide 5 different specimens of 

16 the borrower’s signature, 2 of which must be 

17 within one year before or after the date of 

18 the contested signature. 

19 ‘‘(E) UNAUTHORIZED PAYMENT.—In the 

20 case of a borrower requesting a false certification 

21 discharge because the institution, without the 

22 borrower’s authorization, endorsed the borrower’s 

23 loan check or signed the borrower’s authorization 

24 for electronic funds transfer, the borrower shall— 


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1 ‘‘(i) state that the borrower did not en2 dorse the loan check or sign the authoriza3 tion for electronic funds transfer or author4 ize the institution to do so; 

5 ‘‘(ii) provide 5 different specimens of 

6 the borrower’s signature, 2 of which must be 

7 within one year before or after the date of 

8 the contested signature; and 

9 ‘‘(iii) state that the proceeds of the con10 tested disbursement were not delivered to the 

11 borrower or applied to charges owed by the 

12 borrower to the institution. 

13 ‘‘(F) IDENTITY THEFT.— 

14 ‘‘(i) IN GENERAL.—In the case of an 

15 individual whose eligibility to borrow was 

16 falsely certified because the individual was 

17 a victim of the crime of identity theft and 

18 is requesting a discharge, the individual 

19 shall— 

20 ‘‘(I) certify that the individual 

21 did not sign the promissory note, or 

22 that any other means of identification 

23 used to obtain the loan was used with24 out the authorization of the individual 

25 claiming relief; 


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1 ‘‘(II) certify that the individual 

2 did not receive or benefit from the pro3 ceeds of the loan with knowledge that 

4 the loan had been made without the 

5 authorization of the individual; 

6 ‘‘(III) provide a copy of a local, 

7 State, or Federal court verdict or judg8 ment that conclusively determines that 

9 the individual who is named as the 

10 borrower of the loan was the victim of 

11 a crime of identity theft; and 

12 ‘‘(IV) if the judicial determination 

13 of the crime does not expressly state 

14 that the loan was obtained as a result 

15 of the crime of identity theft, provide— 

16 ‘‘(aa) authentic specimens of 

17 the signature of the individual, as 

18 described in subparagraph 

19 (D)(ii), or of other means of iden20 tification of the individual, as ap21 plicable, corresponding to the 

22 means of identification falsely 

23 used to obtain the loan; and 

24 ‘‘(bb) statement of facts that 

25 demonstrate, to the satisfaction of 


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1 the Secretary, that eligibility for 

2 the loan in question was falsely 

3 certified as a result of the crime of 

4 identity theft committed against 

5 that individual. 

6 ‘‘(ii) DEFINITIONS.—For purposes of 

7 this subparagraph: 

8 ‘‘(I) IDENTITY THEFT.—The term 

9 ‘identity theft’ means the unauthorized 

10 use of the identifying information of 

11 another individual that is punishable 

12 under section 1028, 1028A, 1029, or 

13 1030 of title 18, United States Code, or 

14 substantially comparable State or local 

15 law. 

16 ‘‘(II) IDENTIFYING INFORMA17 TION.—The term ‘identifying informa18 tion’ includes— 

19 ‘‘(aa) name, Social Security 

20 number, date of birth, official 

21 State or government issued driv22 er’s license or identification num23 ber, alien registration number, 

24 government passport number, and 


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1 employer or taxpayer identifica2 tion number; 

3 ‘‘(bb) unique biometric data, 

4 such as fingerprints, voiceprint, 

5 retina or iris image, or unique 

6 physical representation; 

7 ‘‘(cc) unique electronic iden8 tification number, address, or 

9 routing code; or 

10 ‘‘(dd) telecommunication 

11 identifying information or access 

12 device (as defined in 18 U.S.C. 

13 1029(e)) borrower qualifications 

14 for a false certification discharge 

15 ‘‘(G) CLAIM TO THIRD PARTY.—The bor16 rower shall state whether the borrower has made 

17 a claim with respect to the institutions’s false 

18 certification or unauthorized payment with any 

19 third party, such as the holder of a performance 

20 bond or a tuition recovery program, and, if so, 

21 the amount of any payment received by the bor22 rower or credited to the borrower’s loan obliga23 tion. 


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1 ‘‘(H) COOPERATION WITH THE SEC2 RETARY.—The borrower shall state that the bor3 rower— 

4 ‘‘(i) agrees to provide to the Secretary 

5 upon request other documentation reason6 ably available to the borrower that dem7 onstrates that the borrower meets the quali8 fications for discharge under this subsection; 

9 and 

10 ‘‘(ii) agrees to cooperate with the Sec11 retary in enforcement actions and to trans12 fer any right to recovery against a third 

13 party to the Secretary. 

14 ‘‘(8) BORROWER QUALIFICATIONS FOR AN UN15 PAID REFUND DISCHARGE.—To receive an unpaid re16 fund discharge of a portion of a loan under this sub17 section, a borrower shall submit to the holder or guar18 anty agency a written application— 

19 ‘‘(A) that requests the information required 

20 to calculate the amount of the discharge; 

21 ‘‘(B) that the borrower signs for the purpose 

22 of swearing to the accuracy of the information; 

23 ‘‘(C) that is made by the borrower under 

24 penalty of perjury, and that may or may not be 

25 notarized; 


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1 ‘‘(D) under which the borrower states— 

2 ‘‘(i) that the borrower— 

3 ‘‘(I) received, on or after January 

4 1, 1986, the proceeds of a loan, in 

5 whole or in part, made, insured, or 

6 guaranteed under this title to attend 

7 an institution of higher education; 

8 ‘‘(II) did not attend, withdrew, or 

9 was terminated from the institution 

10 within a timeframe that entitled the 

11 borrower to a refund; and 

12 ‘‘(III) did not receive the benefit 

13 of a refund to which the borrower was 

14 entitled either from the institution or 

15 from a third party, such as the holder 

16 of a performance bond or a tuition re17 covery program; 

18 ‘‘(ii) whether the borrower has any 

19 other application for discharge pending for 

20 this loan; and 

21 ‘‘(iii) that the borrower— 

22 ‘‘(I) agrees to provide to the Sec23 retary upon request other documenta24 tion reasonably available to the bor25 rower that demonstrates that the borVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00249 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 rower meets the qualifications for dis2 charge under this subsection; and 

3 ‘‘(II) agrees to cooperate with the 

4 Secretary in enforcement actions and 

5 to transfer any right to recovery 

6 against a third party to the Sec7 retary.’’. 

8 PART C—FEDERAL WORK-STUDY PROGRAMS 

9 SECTION 441. PURPOSE; AUTHORIZATION OF APPROPRIA10 TIONS. 

11 Section 441 (20 U.S.C. 1087–51) is amended— 

12 (1) in subsection (a)— 

13 (A) by striking ‘‘part-time’’ and inserting 

14 ‘‘paid’’; 

15 (B) by striking ‘‘, graduate, or profes16 sional’’; and 

17 (C) by striking ‘‘community service’’ and 

18 inserting ‘‘work-based learning’’; 

19 (2) in subsection (b), by striking ‘‘part, such 

20 sums as may be necessary for fiscal year 2009 and 

21 each of the five succeeding fiscal years.’’ and inserting 

22 ‘‘part, $1,722,858,000 for fiscal year 2019 and each 

23 of the 5 succeeding fiscal years.’’; and 

24 (3) by amending subsection (c) to read as fol25 lows: 


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1 ‘‘(c) WORK-BASED LEARNING.—For purposes of this 

2 part, the term ‘work-based learning’ means paid inter3 actions with industry or community professionals in real 

4 workplace settings that foster in-depth, first-hand engage5 ment with the tasks required of a given career field, that 

6 are aligned to a student’s field of study.’’. 

7 SEC. 442. ALLOCATION FORMULA. 

8 Section 442 (20 U.S.C. 1087–52) is amended to read 

9 as follows: 

10 ‘‘SEC. 442. ALLOCATION OF FUNDS. 

11 ‘‘(a) RESERVATIONS.— 

12 ‘‘(1) RESERVATION FOR IMPROVED INSTITU13 TIONS.— 

14 ‘‘(A) AMOUNT OF RESERVATION FOR IM15 PROVED INSTITUTIONS.—For a fiscal year in 

16 which the amount appropriated under section 

17 441(b) exceeds $700,000,000, the Secretary 

18 shall— 

19 ‘‘(i) reserve the lesser of— 

20 ‘‘(I) an amount equal to 20 per21 cent of the amount by which the 

22 amount appropriated under section 

23 441(b) exceeds $700,000,000; or 

24 ‘‘(II) $150,000,000; and 


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1 ‘‘(ii) allocate the amount reserved 

2 under clause (i) to each improved institu3 tion in an amount— 

4 ‘‘(I) that bears the same propor5 tion to the amount reserved under 

6 clause (i) as the total amount of all 

7 Federal Pell Grant funds awarded at 

8 the improved institution for the second 

9 preceding fiscal year bears to the total 

10 amount of Federal Pell Grant funds 

11 awarded at improved institutions par12 ticipating under this part for the sec13 ond preceding fiscal year; and 

14 ‘‘(II) is not— 

15 ‘‘(aa) less than $10,000; or 

16 ‘‘(bb) greater than 

17 $1,500,000. 

18 ‘‘(B) IMPROVED INSTITUTION DESCRIBED.— 

19 For purposes of this paragraph, an improved in20 stitution is an institution that, on the date the 

21 Secretary makes an allocation under subpara22 graph (A)(ii) is, with respect to— 

23 ‘‘(i) the completion rate or graduation 

24 rate of Federal Pell Grant recipients at the 

25 institution, in the top 10 percent of— 


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1 ‘‘(I) if the institution is an insti2 tution described in any of clauses (iv) 

3 through (ix) of section 132(d)(1)(B), 

4 all such institutions participating 

5 under this part for the preceding fiscal 

6 year; or 

7 ‘‘(II) if the institution is an insti8 tution described in any of clauses (i) 

9 through (iii) of section 132(d)(1)(B), 

10 all such institutions participating 

11 under this part for the preceding fiscal 

12 year; or 

13 ‘‘(ii) the improvement of the comple14 tion rate or graduation rate between the 

15 preceding fiscal year and such date, in the 

16 top 10 percent of the institutions described 

17 in clause (i). 

18 ‘‘(C) COMPLETION RATE OR GRADUATION

19 RATE.—For purposes of determining the comple20 tion rate or graduation rate under this section, 

21 a Federal Pell Grant recipient shall be counted 

22 as a completor or graduate if, within the normal 

23 time for completion of or graduation from the 

24 program, the student has completed or graduated 

25 from the program, or enrolled in any program of 


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1 an institution participating in any program 

2 under this title for which the prior program pro3 vides substantial preparation. 

4 ‘‘(D) REALLOCATION OF RETURNED

5 AMOUNT.—If an institution returns to the Sec6 retary any portion of the sums allocated to such 

7 institution under this paragraph for any fiscal 

8 year, the Secretary shall reallot such excess to 

9 improved institutions on the same basis as under 

10 subparagraph (A)(ii)(I). 

11 ‘‘(2) RESERVATION FOR WORK COLLEGES.— 

12 From the amounts appropriated under section 441(b), 

13 the Secretary shall reserve to carry out section 448 

14 such amounts as may be necessary for fiscal year 

15 2019 and each of the 5 succeeding fiscal years. 

16 ‘‘(b) ALLOCATION FORMULA FOR FISCAL YEARS 2019 

17 THROUGH 2023.— 

18 ‘‘(1) IN GENERAL.—From the amount appro19 priated under section 441(b) for a fiscal year and re20 maining after the Secretary reserves funds under sub21 section (a), the Secretary shall allocate to each insti22 tution— 

23 ‘‘(A) for fiscal year 2019, an amount equal 

24 to the greater of— 


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1 ‘‘(i) 90 percent of the amount the insti2 tution received under this subsection and 

3 subsection (a) for fiscal year 2018, as such 

4 subsections were in effect with respect to 

5 such fiscal year (in this subparagraph re6 ferred to as the ‘2018 amount for the insti7 tution’); or 

8 ‘‘(ii) the fair share amount for the in9 stitution determined under subsection (d); 

10 ‘‘(B) for fiscal year 2020, an amount equal 

11 to the greater of— 

12 ‘‘(i) 80 percent of the 2018 amount for 

13 the institution; or 

14 ‘‘(ii) the fair share amount for the in15 stitution determined under subsection (d); 

16 ‘‘(C) for fiscal year 2021, an amount equal 

17 to the greater of— 

18 ‘‘(i) 60 percent of the 2018 amount for 

19 the institution; or 

20 ‘‘(ii) the fair share amount for the in21 stitution determined under subsection (d); 

22 ‘‘(D) for fiscal year 2022, an amount equal 

23 to the greater of— 

24 ‘‘(i) 40 percent of the 2018 amount for 

25 the institution; or 


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1 ‘‘(ii) the fair share amount for the in2 stitution determined under subsection (d); 

3 and 

4 ‘‘(E) for fiscal year 2023, an amount equal 

5 to the greater of— 

6 ‘‘(i) 20 percent of the 2018 amount for 

7 the institution; or 

8 ‘‘(ii) the fair share amount for the in9 stitution determined under subsection (d). 

10 ‘‘(2) RATABLE REDUCTION.— 

11 ‘‘(A) IN GENERAL.—If the amount appro12 priated under section 441(b) for a fiscal year 

13 and remaining after the Secretary reserves funds 

14 under subsection (a) is less than the amount re15 quired to be allocated to the institutions under 

16 this subsection, then the amount of the allocation 

17 to each institution shall be ratably reduced. 

18 ‘‘(B) ADDITIONAL APPROPRIATIONS.—If the 

19 amounts allocated to each institution are ratably 

20 reduced under subparagraph (A) for a fiscal year 

21 and additional amounts are appropriated for 

22 such fiscal year, the amount allocated to each in23 stitution from the additional amounts shall be 

24 increased on the same basis as the amounts 

25 under subparagraph (A) were reduced (until 


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1 each institution receives the amount required to 

2 be allocated under this subsection). 

3 ‘‘(c) ALLOCATION FORMULA FOR FISCAL YEAR 2024 

4 AND EACH SUCCEEDING FISCAL YEAR.—From the amount 

5 appropriated under section 441(b) for fiscal year 2024 and 

6 each succeeding fiscal year and remaining after the Sec7 retary reserves funds under subsection (a), the Secretary 

8 shall allocate to each institution the fair share amount for 

9 the institution determined under subsection (d). 

10 ‘‘(d) DETERMINATION OF FAIR SHARE AMOUNT.— 

11 ‘‘(1) IN GENERAL.—The fair share amount for 

12 an institution for a fiscal year shall be equal to the 

13 sum of the following: 

14 ‘‘(A) An amount equal to 50 percent of the 

15 amount that bears the same proportion to the 

16 available appropriated amount for such fiscal 

17 year as the total amount of Federal Pell Grant 

18 funds disbursed at the institution for the pre19 ceding fiscal year bears to the total amount of 

20 Federal Pell Grant funds awarded at all institu21 tions participating under this part for the pre22 ceding fiscal year. 

23 ‘‘(B) An amount equal to 50 percent of the 

24 amount that bears the same proportion to the 

25 available appropriated amount for such fiscal 


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1 year as the total amount of the undergraduate 

2 student need at the institution for the preceding 

3 fiscal year bears to the total amount of under4 graduate student need at all institutions partici5 pating under this part for the preceding fiscal 

6 year. 

7 ‘‘(2) DEFINITIONS.—In this subsection: 

8 ‘‘(A) AVAILABLE APPROPRIATED AMOUNT.— 

9 The term ‘available appropriated amount’ 

10 means— 

11 ‘‘(i) the amount appropriated under 

12 section 441(b) for a fiscal year, minus 

13 ‘‘(ii) the amounts reserved under sub14 section (a) for such fiscal year. 

15 ‘‘(B) AVERAGE COST OF ATTENDANCE.—The 

16 term ‘average cost of attendance’ means, with re17 spect to an institution, the average of the attend18 ance costs for a fiscal year for students which 

19 shall include— 

20 ‘‘(i) tuition and fees, computed on the 

21 basis of information reported by the institu22 tion to the Secretary, which shall include— 

23 ‘‘(I) total revenue received by the 

24 institution from undergraduate tuition 

25 and fees for the second year preceding 


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1 the year for which it is applying for 

2 an allocation; and 

3 ‘‘(II) the institution’s enrollment 

4 for such second preceding year; 

5 ‘‘(ii) standard living expenses equal to 

6 150 percent of the difference between the in7 come protection allowance for a family of 5 

8 with 1 in college and the income protection 

9 allowance for a family of 6 with 1 in college 

10 for a single independent student; and 

11 ‘‘(iii) books and supplies, in an 

12 amount not exceeding $800. 

13 ‘‘(C) UNDERGRADUATE STUDENT NEED.— 

14 The term ‘undergraduate student need’ means, 

15 with respect to an undergraduate student for a 

16 fiscal year, the lesser of the following: 

17 ‘‘(i) The total of the amount equal to 

18 (except the amount computed by this clause 

19 shall not be less than zero)— 

20 ‘‘(I) the average cost of attendance 

21 for the fiscal year, minus 

22 ‘‘(II) the total amount of each 

23 such undergraduate student’s expected 

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1 cordance with part F of this title) for 

2 the preceding fiscal year. 

3 ‘‘(ii) $12,500. 

4 ‘‘(e) RETURN OF SURPLUS ALLOCATED FUNDS.— 

5 ‘‘(1) AMOUNT RETURNED.—If an institution re6 turns more than 10 percent of its allocation under 

7 subsection (d), the institution’s allocation for the next 

8 fiscal year shall be reduced by the amount returned. 

9 ‘‘(2) WAIVER.—The Secretary may waive this 

10 paragraph for a specific institution if the Secretary 

11 finds that enforcing this paragraph would be contrary 

12 to the interest of the program. 

13 ‘‘(f) FILING DEADLINES.—The Secretary shall, from 

14 time to time, set dates before which institutions must file 

15 applications for allocations under this part.’’. 

16 SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS. 

17 Section 443 (20 U.S.C. 1087–53) is amended— 

18 (1) in subsection (b)— 

19 (A) in paragraph (1), in the matter pre20 ceding subparagraph (A), by striking ‘‘part21 time’’; 

22 (B) in paragraph (2), by striking ‘‘except 

23 that—’’ and all that follows through ‘‘an institu24 tion may use a portion’’ and inserting ‘‘except 

25 that an institution may use a portion’’; 


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1 (C) in paragraph (3), by inserting ‘‘under2 graduate’’ after ‘‘only’’; 

3 (D) in paragraph (4), by striking ‘‘300’’ 

4 and inserting ‘‘500’’; 

5 (E) in paragraph (5)— 

6 (i) by striking ‘‘shall not exceed 75 

7 percent’’ and inserting ‘‘shall not exceed 75 

8 percent in the first year after the date of the 

9 enactment of PROSPER Act, 65 percent in 

10 the first succeeding fiscal year, 60 percent 

11 in the second succeeding fiscal year, 55 per12 cent in the third succeeding fiscal year, and 

13 50 percent each succeeding fiscal year’’; 

14 (ii) by striking subparagraph (A); 

15 (iii) in subparagraph (B)— 

16 (I) by striking ‘‘75’’ and inserting 

17 ‘‘50’’; and 

18 (II) by striking the semicolon and 

19 inserting ‘‘; and’’; 

20 (iv) by redesignating subparagraph 

21 (B) as subparagraph (A); and 

22 (v) by adding at the end the following: 

23 ‘‘(B) the Federal share may equal 100 per24 cent with respect to funds received under section 

25 442(a)(1)(A);’’; 


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1 (F) in paragraph (8)— 

2 (i) in subparagraph (A)(i), by striking 

3 ‘‘vocational’’ and inserting ‘‘career’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘community service’’ and inserting ‘‘work6 based learning’’; 

7 (G) in paragraph (10), by striking ‘‘; and’’ 

8 and inserting a semicolon; 

9 (H) in paragraph (11), by striking the pe10 riod at the end and inserting a semicolon; and 

11 (I) by adding at the end the following: 

12 ‘‘(12) provide assurances that the institution will 

13 collect data from students and employers such that the 

14 employment made available from funds under this 

15 part will, to the maximum extent practicable, com16 plement and reinforce the educational goals or career 

17 goals of each student receiving assistance under this 

18 part; and 

19 ‘‘(13) provide assurances that if the institution 

20 receives funds under section 442(a)(1)(A), such insti21 tution shall— 

22 ‘‘(A) use such funds to compensate students 

23 participating in the work-study program; and 

24 ‘‘(B) prioritize the awarding of such funds 

25 to students— 


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1 ‘‘(i) who demonstrate exceptional need; 

2 or 

3 ‘‘(ii) who are employed in work-based 

4 learning opportunities through the work5 study program.’’; 

6 (2) in subsection (c)— 

7 (A) in paragraph (1)— 

8 (i) by striking ‘‘program of part-time 

9 employment’’ and inserting the following: 

10 ‘‘program— 

11 ‘‘(A) of employment’’; and 

12 (ii) by inserting ‘‘or’’ after ‘‘subsection 

13 (b)(3);’’; and 

14 (iii) by adding at the end the fol15 lowing: 

16 ‘‘(B) of full-time employment of its coopera17 tive education students in work for a private for18 profit organization under an arrangement be19 tween the institution and such organization that 

20 complies with the requirements of subparagraphs 

21 (A) through (D) of subsection (b)(1) of this sec22 tion and subsection (b)(4) of this section;’’; 

23 (B) by striking paragraph (2); 

24 (C) in paragraph (4), by inserting ‘‘and 

25 complement and reinforce the educational goals 


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1 or career goals of each student receiving assist2 ance under this part’’ after ‘‘relevant’’; and 

3 (D) by redesignating paragraphs (3), (4), 

4 and (5) as paragraphs (2), (3), and (4), respec5 tively; and 

6 (3) in subsection (d)— 

7 (A) in paragraph (1)— 

8 (i) by striking ‘‘In any academic year 

9 to which subsection (b)(2)(A) applies, an 

10 institution shall ensure that’’ and inserting 

11 ‘‘An institution may use the’’ ; and 

12 (ii) by striking ‘‘are used’’; and 

13 (B) in paragraph (3), by striking ‘‘may ex14 ceed 75 percent’’ and inserting ‘‘shall not exceed 

15 50 percent’’. 

16 SEC. 444. FLEXIBLE USE OF FUNDS. 

17 Section 445(a) (20 U.S.C. 1087–55(a)) is amended— 

18 (1) in paragraph (2), by striking ‘‘in the same 

19 State’’ and inserting ‘‘described under section 

20 442(a)(1)(B)’’; and 

21 (2) by adding at the end the following new para22 graph: 

23 ‘‘(3) In addition to the carry-over sums authorized 

24 under paragraph (1) of this section, an institution may 

25 permit a student who completed the previous award period 


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1 to continue to earn unearned portions of the student’s work2 study award from that previous year if— 

3 ‘‘(A) any reduction in the student’s need upon 

4 which the award was based is accounted for in the re5 maining portion; and 

6 ‘‘(B) the student is currently employed in a 

7 work-based learning position.’’. 

8 SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS. 

9 Section 446 (20 U.S.C. 1087–56) is amended— 

10 (1) in subsection (a)— 

11 (A) in paragraph (1)— 

12 (i) by striking ‘‘10 percent or $75,000’’ 

13 and inserting ‘‘20 percent or $150,000’’; 

14 and 

15 (ii) by striking ‘‘, including commu16 nity service jobs,’’; 

17 (B) in paragraph (2), by striking ‘‘voca18 tional’’ and inserting ‘‘career’’; and 

19 (C) by adding at the end the following: 

20 ‘‘(3) An institution may use a portion of the funds 

21 expended under this section to identify and expand oppor22 tunities for apprenticeships for students and to assist em23 ployers in developing jobs that are part of apprenticeship 

24 programs.’’; and 

25 (2) in subsection (b)— 


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1 (A) by striking paragraph (2); 

2 (B) by redesignating paragraphs (3) 

3 through (6) as paragraphs (4) through (7), re4 spectively; and 

5 (C) by inserting before paragraph (4), as so 

6 redesignated, the following: 

7 ‘‘(2) provide satisfactory assurance that the in8 stitution will prioritize placing students with the low9 est expected family contribution and Federal work10 study recipients in jobs located and developed under 

11 this section; 

12 ‘‘(3) provide a satisfactory assurance that the in13 stitution will locate and develop work-based learning 

14 opportunities through the job location development 

15 programs;’’; and 

16 (D) in paragraph (7), as so redesignated, by 

17 striking the period and inserting ‘‘, including— 

18 ‘‘(A) the number of students employed in 

19 work-based learning opportunities through such 

20 program; 

21 ‘‘(B) the number of students demonstrating 

22 exceptional need and employed in a work-study 

23 program through such program; and 


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1 ‘‘(C) the number of students demonstrating 

2 exceptional need and employed in work-based 

3 learning opportunities through such program.’’. 

4 SEC. 446. COMMUNITY SERVICE. 

5 Section 447 (20 U.S.C. 1087–57) is repealed. 

6 SEC. 447. WORK COLLEGES. 

7 Section 448 (20 U.S.C. 1087–58) is amended— 

8 (1) in subsection (b)— 

9 (A) in paragraph (1)— 

10 (i) by striking ‘‘and part E’’; and 

11 (ii) by striking ‘‘appropriated’’ and 

12 inserting ‘‘allocated’’; 

13 (B) in paragraph (2), by striking ‘‘appro14 priated pursuant to’’ and inserting ‘‘allocated 

15 under’’; and 

16 (2) in subsection (c), by striking ‘‘authorized by’’ 

17 and inserting ‘‘allocated under’’; 

18 (3) in subsection (e)(1)— 

19 (A) in subparagraph (C), by striking ‘‘; 

20 and’’ and inserting a semicolon; and 

21 (B) by adding at the end the following: 

22 ‘‘(E) has administered Federal work-study 

23 for at least 2 years; and’’; and 

24 (4) by amending subsection (f) to read as follows: 

25 ‘‘(f) ALLOCATION OF RESERVED FUNDS.— 


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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

2 from the amount reserved under section 442(a)(2) for 

3 a fiscal year to carry out this section, the Secretary 

4 shall allocate to each work college that submits an ap5 plication under subsection (c) an amount equal to the 

6 amount that bears the same proportion to the amount 

7 appropriated for such fiscal year as the number of 

8 students eligible for employment under a work-study 

9 program under this part who are enrolled at the work 

10 college bears to the total number of students eligible 

11 for employment under a work-study program under 

12 this part who are enrolled at all work colleges. 

13 ‘‘(2) REALLOTMENT OF UNMATCHED FUNDS.—If 

14 a work college is unable to match funds received 

15 under paragraph (1) in accordance with subsection 

16 (d), any unmatched funds shall be returned to the 

17 Secretary and the Secretary shall reallot such funds 

18 on the same basis as funds are allocated under para19 graph (1).’’. 


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1 PART D—FEDERAL DIRECT STUDENT LOAN 

2 PROGRAM 

3 SEC. 451. TERMINATION OF FEDERAL DIRECT LOAN PRO4 GRAM UNDER PART D AND OTHER CON5 FORMING AMENDMENTS. 

6 (a) APPROPRIATIONS.—Section 451 (20 U.S.C. 1087a) 

7 is amended— 

8 (1) in subsection (a), by adding at the end the 

9 following: ‘‘No sums may be expended after September 

10 30, 2024, with respect to loans under this part for 

11 which the first disbursement is after such date.’’; and 

12 (2) by adding at the end, the following: 

13 ‘‘(c) TERMINATION OF AUTHORITY TO MAKE NEW

14 LOANS.—Notwithstanding subsection (a) or any other pro15 vision of law— 

16 ‘‘(1) no new loans may be made under this part 

17 after September 30, 2024; and 

18 ‘‘(2) no funds are authorized to be appropriated, 

19 or may be expended, under this Act, or any other Act 

20 to make loans under this part for which the first dis21 bursement is after September 30, 2024, 

22 except as expressly authorized by an Act of Congress enacted 

23 after the date of enactment of the PROSPER Act. 

24 ‘‘(d) STUDENT ELIGIBILITY BEGINNING WITH AWARD

25 YEAR 2019.— 


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1 ‘‘(1) NEW BORROWERS.—No loan may be made 

2 under this part to a new borrower for which the first 

3 disbursement is after June 30, 2019. 

4 ‘‘(2) BORROWERS WITH OUTSTANDING BAL5 ANCES.—Subject to paragraph (3), with respect to a 

6 borrower who, as of July 1, 2019, has an outstanding 

7 balance of principal or interest owing on a loan made 

8 under this part, such borrower may— 

9 ‘‘(A) in the case of such a loan made to the 

10 borrower for enrollment in a program of under11 graduate education, borrow loans made under 

12 this part for any program of undergraduate edu13 cation through the close of September 30, 2024; 

14 ‘‘(B) in the case of such a loan made to the 

15 borrower for enrollment in a program of grad16 uate or professional education, borrow loans 

17 made under this part for any program of grad18 uate or professional education through the close 

19 of September 30, 2024; and 

20 ‘‘(C) in the case of such a loan made to the 

21 borrower on behalf of a dependent student for the 

22 student’s enrollment in a program of under23 graduate education, borrow loans made under 

24 this part on behalf of such student through the 

25 close of September 30, 2024. 


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1 ‘‘(3) LOSS OF ELIGIBILITY.—A borrower de2 scribed in paragraph (2) who borrows a loan made 

3 under part E for which the first disbursement is 

4 made on or after July 1, 2019, shall lose the bor5 rower’s eligibility to borrow loans made under this 

6 part in accordance with paragraph (2).’’. 

7 (b) PERKINS LOAN CONFORMING AMENDMENT.—Sec8 tion 453(c)(2)(A) (20 U.S.C. 1087c(c)(2)(A)) is amended by 

9 inserting ‘‘, as in effect on the day before the date of enact10 ment of the PROSPER Act and pursuant to section 

11 461(a),’’ after ‘‘part E’’; 

12 (c) APPLICABLE INTEREST RATES AND OTHER TERMS

13 AND CONDITIONS.—Section 455 (20 U.S.C. 1087e) is 

14 amended— 

15 (1) in subsection (a)— 

16 (A) in paragraph (1), by inserting ‘‘, and 

17 first disbursed before October 1, 2024,’’ after 

18 ‘‘under this part’’; 

19 (B) in paragraph (2), by inserting ‘‘, and 

20 first disbursed before October 1, 2024,’’ after 

21 ‘‘under this part’’; 

22 (2) in subsection (b)(8)— 

23 (A) in the paragraph heading, by inserting 

24 ‘‘AND BEFORE OCTOBER 1, 2024’’ after ‘‘2013’’; 


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1 (B) in subparagraph (A), by inserting ‘‘and 

2 before October 1, 2024,’’ after ‘‘July 1, 2013,’’; 

3 (C) in subparagraph (B), by inserting ‘‘and 

4 before October 1, 2024,’’ after ‘‘July 1, 2013,’’; 

5 (D) in subparagraph (C), by inserting ‘‘and 

6 before October 1, 2024,’’ after ‘‘July 1, 2013,’’; 

7 and 

8 (E) in subparagraph (D), by inserting ‘‘and 

9 before October 1, 2024,’’ after ‘‘July 1, 2013,’’; 

10 (3) in subsection (c)(2)(E), by inserting ‘‘, and 

11 before October 1, 2024’’ after ‘‘July 1, 2010’’; 

12 (4) in subsection (e)(7), in the matter preceding 

13 subparagraph (A), by inserting ‘‘, as in effect on the 

14 day before the date of enactment of the PROSPER 

15 Act and pursuant to section 461(a)’’ after ‘‘part E’’; 

16 and 

17 (5) in subsection (g)— 

18 (A) by inserting ‘‘, and first disbursed be19 fore October 1, 2024,’’ after ‘‘under this part’’ the 

20 first place it appears; and 

21 (B) by adding at the end the following: 

22 ‘‘The authority to make consolidation loans 

23 under this subsection expires at the close of Sep24 tember 30, 2024. No loan may be made under 


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1 this subsection for which the disbursement is on 

2 or after October 1, 2024.’’; and 

3 (6) in subsection (o)— 

4 (A) in paragraph (1), by inserting ‘‘, and 

5 before October 1, 2024’’ after ‘‘October 1, 2008’’; 

6 and 

7 (B) in paragraph (2)— 

8 (i) by inserting ‘‘and before October 1, 

9 2024,’’ after ‘‘October 1, 2008,’’; and 

10 (ii) by inserting ‘‘, and before October 

11 1, 2024’’ before the period at the end. 

12 SEC. 452. BORROWER DEFENSES. 

13 Section 455(h) (20 U.S.C. 1087e(h)) is amended to 

14 read as follows: 

15 ‘‘(h) BORROWER DEFENSES.— 

16 ‘‘(1) IN GENERAL.—In any proceeding to collect 

17 on a loan made under this part on or after July 1, 

18 2018 to a borrower, the Secretary shall abide by the 

19 following: 

20 ‘‘(A) In no event may the borrower recover 

21 any amount previously collected or be freed of 

22 amounts owed to the Secretary without submit23 ting an individually-filed application for ap24 proval. 


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1 ‘‘(B) In no event may the borrower recover 

2 amounts previously collected by the Secretary, in 

3 any action arising from or relating to a loan 

4 made under this part, in an amount in excess of 

5 the amount that has been paid by the borrower 

6 on such loan. 

7 ‘‘(C) In no event may the borrower submit 

8 an application to recover amounts previously 

9 collected by the Secretary later than 3 years after 

10 the misconduct or breach of contract on behalf of 

11 the institution takes place that gives rise to the 

12 borrower to assert a defense to repayment of the 

13 loan. 

14 ‘‘(D) In no event may anyone other than an 

15 administrative law judge or its equivalent pre16 side over hearings of any kind related to appli17 cations submitted under this subsection. 

18 ‘‘(E) In no event may the Secretary ap19 prove or disapprove the borrower’s application 

20 under this subsection without allowing for the 

21 equal consideration of evidence and arguments 

22 presented by a representative on behalf of the 

23 student or students and a representative on be24 half of the institution, if either such party makes 

25 a request. 


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1 ‘‘(F) In no event may the Secretary with2 hold from an institution any materials, facts, or 

3 evidence used when processing an application 

4 submitted by the borrower. 

5 ‘‘(G) In no event may the borrower of a 

6 loan made, insured or guaranteed under this 

7 title (other than a loan made under this part or 

8 a Federal ONE Loan) submit an application 

9 under this subsection without consolidating the 

10 loans of the borrower into a Federal ONE Con11 solidation Loan. 

12 ‘‘(2) BORROWER APPLICATION REQUIREMENTS.— 

13 ‘‘(A) IN GENERAL.—An application sub14 mitted by a borrower under this subsection to the 

15 Secretary shall— 

16 ‘‘(i) certify the borrower’s receipt of 

17 loan proceeds, in whole or in part, to attend 

18 the named institution of higher education; 

19 ‘‘(ii) provide evidence described in sub20 paragraph (B) that supports a borrower de21 fense to repayment of the loan; and 

22 ‘‘(iii) indicate whether the borrower 

23 has made a claim with respect to the infor24 mation underlying the borrower defense 

25 with any third party and, if so, the amount 


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1 of any payment received by the borrower or 

2 credited to the borrower’s loan obligation. 

3 ‘‘(B) EVIDENCE.—The borrower has a bor4 rower defense if— 

5 ‘‘(i) the borrower, whether as an indi6 vidual or as a member of a class, or a gov7 ernmental agency, has obtained against the 

8 institution of higher education a nondefault, 

9 favorable contested judgment based on State 

10 or Federal law in a court or administrative 

11 tribunal of competent jurisdiction; 

12 ‘‘(ii) the institution of higher education 

13 for which the borrower received the loan 

14 made under this part failed to perform its 

15 obligations under the terms of a contract 

16 with the student; or 

17 ‘‘(iii) the institution of higher edu18 cation described in clause (ii) or any of its 

19 representatives engaged directly in mar20 keting, recruitment or admissions activities, 

21 or any other institution of higher education, 

22 organization, or person with whom such in23 stitution has an agreement to provide edu24 cational programs, or to provide marketing, 

25 advertising, recruiting, or admissions servVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00276 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ices, made a substantial misrepresentation 

2 within the meaning of section 

3 487(c)(3)(B)(i)(II) that the borrower rea4 sonably relied on when the borrower decided 

5 to attend, or to continue attending, such in6 stitution. 

7 ‘‘(3) SECRETARIAL NOTIFICATION REQUIRE8 MENTS.— 

9 ‘‘(A) RECEIPT OF APPLICATION.—Upon re10 ceipt of a borrower’s application, the Sec11 retary— 

12 ‘‘(i) if the borrower is not in default on 

13 the loan for which a borrower defense has 

14 been asserted, shall grant a forbearance and 

15 notify the borrower of the option to decline 

16 the forbearance and to continue making 

17 payments on the loan; 

18 ‘‘(ii) if the borrower is in default on 

19 the loan for which a borrower defense has 

20 been asserted— 

21 ‘‘(I) shall suspend collection activ22 ity on the loan until the Secretary 

23 issues a decision on the borrower’s 

24 claim; 


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1 ‘‘(II) shall notify the borrower of 

2 the suspension of collection activity 

3 and explain that collection activity 

4 will resume if the Secretary determines 

5 that the borrower does not qualify for 

6 a full discharge; and 

7 ‘‘(III) shall notify the borrower of 

8 the option to continue making pay9 ments under a rehabilitation agree10 ment or other repayment agreement on 

11 the defaulted loan; and 

12 ‘‘(iii) shall to the extent possible, notify 

13 the institutions against which the applica14 tion is filed, which notification shall in15 clude— 

16 ‘‘(I) the reasons that the applica17 tion has been filed; and 

18 ‘‘(II) the amount of relief re19 quested. 

20 ‘‘(B) APPROVED APPLICATION.—If a bor21 rower’s application is approved in full or in 

22 part, the Secretary shall— 

23 ‘‘(i) notify the borrower and the insti24 tution in writing of that determination and 

25 of the relief provided; and 


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1 ‘‘(ii) inform the institution of the op2 portunity to request a one-time reconsider3 ation of the claim in the application if new 

4 evidence that was not previously provided 

5 can be identified. 

6 ‘‘(C) APPLICATION NOT APPROVED.—If a 

7 borrower’s application is not approved in full or 

8 in part, the Secretary— 

9 ‘‘(i) shall notify the borrower and the 

10 institution of the reasons for the denial, the 

11 evidence that was relied upon, any portion 

12 of the loan that is due and payable to the 

13 Secretary, whether the Secretary will reim14 burse any amounts previously collected, and 

15 inform the borrower that the loan will re16 turn to its status prior to the borrower’s 

17 submission of the application; and 

18 ‘‘(ii) shall inform the borrower of the 

19 opportunity to request a one-time reconsid20 eration of the claim in the application if 

21 new evidence that was not previously pro22 vided can be identified. 

23 ‘‘(D) CONSOLIDATION.—During a pro24 ceeding for an individual borrower, the Secretary 

25 may consolidate individually-filed applications 


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1 that have common facts and claims and resolve 

2 the borrowers’ borrower defense claims for faster 

3 processing. 

4 ‘‘(E) NEW EVIDENCE DEFINED.—For pur5 poses of this paragraph, the term ‘new evidence’ 

6 means relevant evidence that the borrower or the 

7 institution did not previously provide and that 

8 was not identified in the final decision as evi9 dence that was relied upon for the final decision. 

10 If accepted for reconsideration by the Secretary, 

11 the Secretary shall follow the procedure under 

12 this paragraph. 

13 ‘‘(F) NOTIFICATION.—After a borrower sub14 mits an application, the Secretary shall include 

15 in the notification to the borrower— 

16 ‘‘(i) the actions, including deadlines 

17 and document requests, that will be taken 

18 by the Secretary when processing an appli19 cation by the borrower; and 

20 ‘‘(ii) that the final action by the Sec21 retary shall be available for review under 

22 subchapter II of chapter 5, and chapter 7, 

23 of title 5, United States Code (commonly 

24 known as the ‘Administrative Procedure 

25 Act’). 


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1 ‘‘(G) TIMELY APPROVAL PROCESS.—During 

2 a proceeding for an individual borrower, the Sec3 retary shall process a submitted application and 

4 notify the borrower of the final determination in 

5 a manner that is timely and efficient. 

6 ‘‘(H) REPORT.—Not later than two years 

7 after the date of enactment of the PROSPER 

8 Act, the Secretary shall submit to the author9 izing committees a report that includes— 

10 ‘‘(i) the established policies and proce11 dures for processing applications; 

12 ‘‘(ii) the established policies and proce13 dures for approving an application; 

14 ‘‘(iii) the established policies and pro15 cedures for denying an application; 

16 ‘‘(iv) the method used to calculate the 

17 amount and type of relief to be awarded to 

18 borrowers who submit an application; and 

19 ‘‘(v) the established timeframes for the 

20 policies and procedures identified in clauses 

21 (i) through (iii). 

22 ‘‘(4) CALCULATION OF RELIEF.—The Secretary 

23 shall determine the appropriate method for calcu24 lating the amount of relief to be awarded to a bor25 rower as a result of a proceeding described in this 


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1 subsection based on the materials, facts, and evidence 

2 presented during the proceeding. 

3 ‘‘(5) FURTHER RELIEF.—The Secretary may af4 ford the borrower such further relief as the Secretary 

5 determines is appropriate under the circumstances, 

6 but which shall not exceed the following: 

7 ‘‘(A) Reimbursing the borrower for amounts 

8 paid toward the loan voluntarily or through en9 forced collection. 

10 ‘‘(B) Restoring eligibility for assistance 

11 under this title after determining that the bor12 rower is not in default on the loan. 

13 ‘‘(C) Updating reports to consumer report14 ing agencies to which the Secretary previously 

15 made adverse credit reports with regard to a 

16 loan made under this part after July 1, 2018. 

17 ‘‘(6) RECOVERY.— 

18 ‘‘(A) IN GENERAL.—The Secretary may ini19 tiate an appropriate proceeding to require the 

20 institution of higher education whose act or 

21 omission resulted in the borrower’s successful de22 fense against repayment of a loan made under 

23 this part to pay to the Secretary the amount of 

24 the loan to which the defense applies not later 


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1 than 3 years from the end of the last award year 

2 in which the student attended the institution. 

3 ‘‘(B) NOTICE.—The Secretary may initiate 

4 a proceeding to collect at any time if the institu5 tion received notice of the claim before the end of 

6 the later of the periods described in subpara7 graph (A). For purposes of this subparagraph, 

8 notice includes receipt of— 

9 ‘‘(i) actual notice from the borrower, 

10 from a representative of the borrower, or 

11 from the Department; 

12 ‘‘(ii) a class action complaint asserting 

13 relief for a class that may include the bor14 rower; or 

15 ‘‘(iii) written notice, including a civil 

16 investigative demand or other written de17 mand for information, from a Federal or 

18 State agency that has power to initiate an 

19 investigation into conduct of the institution 

20 of higher education relating to specific pro21 grams, periods, or practices that may have 

22 affected the borrower.’’. 

23 SEC. 453. PLAIN LANGUAGE DISCLOSURE FORM. 

24 (a) PLAIN LANGUAGE DISCLOSURE FORM.—Section 

25 455(p) (20 U.S.C. 1087e(p)) is amended to read as follows: 


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1 ‘‘(p) DISCLOSURES.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall, with re3 spect to loans under this part and in accordance with 

4 such regulations as the Secretary shall prescribe, com5 ply with each of the requirements under section 433 

6 that apply to a lender with respect to a loan under 

7 part B. 

8 ‘‘(2) PLAIN LANGUAGE DISCLOSURE FORM.— 

9 ‘‘(A) DEVELOPMENT AND ISSUANCE OF

10 FORM.—Not later than 24 months after the date 

11 of the enactment of this paragraph, the Secretary 

12 shall, based on consumer testing, develop and 

13 issue a model form to be known as the ‘Plain 

14 Language Disclosure Form’ that shall be used by 

15 the Secretary to comply with paragraph (1). 

16 ‘‘(B) FORMAT.—The Secretary shall ensure 

17 that the Plain Language Disclosure Form— 

18 ‘‘(i) enables borrowers to easily iden19 tify the information required to be disclosed 

20 under section 433(a) with respect to a loan, 

21 with emphasis on the loan terms determined 

22 by the Secretary, based on consumer testing, 

23 to be critical to understanding the total 

24 costs of the loan and the estimated monthly 

25 repayment; 


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1 ‘‘(ii) has a clear format and design, in2 cluding easily readable font; and 

3 ‘‘(iii) is as succinct as practicable. 

4 ‘‘(C) CONSULTATION.—In developing Plain 

5 Language Disclosure Form, the Secretary shall, 

6 as appropriate, consult with— 

7 ‘‘(i) the Federal Reserve Board; 

8 ‘‘(ii) borrowers of loans under this 

9 part; and 

10 ‘‘(iii) other organizations involved in 

11 the provision of financial assistance to stu12 dents, as identified by the Secretary. 

13 ‘‘(3) ELECTRONIC SYSTEM FOR COMPLIANCE.—In 

14 carrying out paragraph (2), Secretary shall develop 

15 and implement an electronic system to generate a 

16 Plain Language Disclosure Form for each borrower 

17 that includes personalized information about the bor18 rower and the borrower’s loans. 

19 ‘‘(4) LIMIT ON LIABILITY.—Nothing in this sub20 section shall be construed to create a private right of 

21 action against the Secretary with respect to the form 

22 or electronic system developed under this paragraph. 

23 ‘‘(5) BORROWER SIGNATURE REQUIRED.—Begin24 ning after the issuance of the Plain Language Disclo25 sure Form by the Secretary under paragraph (2), a 


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1 loan may not be issued to a borrower under this part 

2 unless the borrower acknowledges to the Secretary, in 

3 writing (which may include an electronic signature), 

4 that the borrower has read the Plain Language Dis5 closure Form for the loan concerned. 

6 ‘‘(6) CONSUMER TESTING DEFINED.—In this sub7 section, the term ‘consumer testing’ means the solici8 tation of feedback from individuals, including bor9 rowers and prospective borrowers of loans under this 

10 part (as determined by the Secretary), about the use11 fulness of different methods of disclosing material 

12 terms of loans on the Plain Language Disclosure 

13 Form to maximize borrowers’ understanding of the 

14 terms and conditions of such loans.’’. 

15 (b) REPORT TO CONGRESS.—Not later than 3 years 

16 after the date of the enactment of this Act, the Secretary 

17 of Education shall submit to Congress a report that includes 

18 a description of the methods and procedures used to develop 

19 the Plain Language Disclosure Form required under section 

20 455(p)(2) of the Higher Education Act of 1965 (as added 

21 by subsection (a) of this section). 

22 SEC. 454. ADMINISTRATIVE EXPENSES. 

23 Section 458(a) (20 U.S.C. 1087h)— 

24 (1) in paragraph (3)— 


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1 (A) by striking ‘‘2007’’ each place it ap2 pears, including in any headings, and inserting 

3 ‘‘2019’’; 

4 (B) by striking ‘‘2014’’ each place it ap5 pears, including in any headings, and inserting 

6 ‘‘2024’’; and 

7 (C) by striking ‘‘part and part B, including 

8 the costs of the direct student loan programs 

9 under this part’’ and inserting ‘‘title’’; 

10 (2) in paragraph (4), by striking ‘‘2017’’ and in11 serting ‘‘2024’’; 

12 (3) in paragraph (6)— 

13 (A) in subparagraph (B), by striking 

14 ‘‘2010’’ and inserting ‘‘2019’’; and 

15 (B) in subparagraph (C), by striking 

16 ‘‘training’’ and inserting ‘‘education’’; 

17 (4) by striking paragraph (7); and 

18 (5) by redesignating paragraph (8) as para19 graph (7). 

20 SEC. 455. LOAN CANCELLATION FOR TEACHERS. 

21 Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is 

22 amended by striking ‘‘that qualifies under section 

23 465(a)(2)(A) for loan cancellation for Perkins loan recipi24 ents who teach in such schools or locations’’ and inserting 

25 ‘‘described in section 420N(b)(1)(B)’’. 


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1 PART E—FEDERAL ONE LOANS 

2 SEC. 461. WIND-DOWN OF FEDERAL PERKINS LOAN PRO3 GRAM. 

4 (a) IN GENERAL.—Except as otherwise provided in 

5 this section and notwithstanding section 462, the provisions 

6 of part E of title IV of the Higher Education Act of 1965 

7 (20 U.S.C. 1087aa et seq.), as in effect on the day before 

8 the date of enactment of this Act, are deemed to be incor9 porated in this subsection as though set forth fully in this 

10 subsection, and shall have the same force and effect as on 

11 such day. 

12 (b) CLOSE-OUT AUDITS.— 

13 (1) IN GENERAL.—In the case of an institution 

14 of higher education that desires to have a final audit 

15 of its participation under the program under part E 

16 of title IV of the Higher Education Act of 1965 (20 

17 U.S.C. 1087aa et seq.), as in effect pursuant to sub18 section (a), at the same time as its annual financial 

19 and compliance audit under section 487(c) of such 

20 Act (20 U.S.C. 1094(c)), such institution shall submit 

21 to the Secretary a request, in writing, for such an ar22 rangement not later than 60 days after the institution 

23 terminates its participation under such program. 

24 (2) TERMINATION OF PARTICIPATION.—For pur25 poses of this subsection, an institution shall be consid26 ered to have terminated its participation under the 


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1 program described in paragraph (1), if the institu2 tion— 

3 (A)(i) has made a determination not to 

4 service and collect student loans made available 

5 from funds under part E of title IV of the High6 er Education Act of 1965 (20 U.S.C. 1087aa et 

7 seq.), as in effect pursuant to subsection (a); or 

8 (ii) has completed the servicing and collec9 tion of such student loans; and 

10 (B) has completed the asset distribution re11 quired under section 466(b) of the Higher Edu12 cation Act of 1965 (20 U.S.C. 1087ff(b)), as in 

13 effect pursuant to subsection (a). 

14 (c) COLLECTION OF INTEREST ON CERTAIN STUDENT

15 LOANS.—In the case of an institution of higher education 

16 that, on or after October 1, 2006, loaned an amount to its 

17 student loan fund established under part E of title IV of 

18 the Higher Education Act of 1965 (20 U.S.C. 1087aa et 

19 seq.), as in effect pursuant to subsection (a), for the purpose 

20 of making student loans from such fund, and that, before 

21 the date of enactment of this Act, has repaid to itself the 

22 amount loaned to such student loan fund, the institution 

23 shall collect any interest earned on such student loans. 

24 (d) ASSIGNMENT OF LOANS TO SECRETARY.—Notwith25 standing the requirements of section 463(a)(5) of the Higher 


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1 Education Act of 1965 (20 U.S.C. 1087cc(a)(5)), as in effect 

2 pursuant to subsection (a), if an institution of higher edu3 cation determines not to service and collect student loans 

4 made available from funds under part E of such Act (20 

5 U.S.C. 1087aa et seq.), as so in effect— 

6 (1) the institution shall assign, during the re7 payment period, any notes or evidence of obligations 

8 of student loans made from such funds to the Sec9 retary; and 

10 (2) the Secretary shall deposit any sums collected 

11 on such notes or obligations (less an amount not to 

12 exceed 30 percent of any such sums collected to cover 

13 that Secretary’s collection costs) into the Treasury of 

14 the United States. 

15 (e) CLOSED SCHOOL DISCHARGE.—The amendments 

16 made by section 428 to section 437(c) of the Higher Edu17 cation Act of 1965 (20 U.S.C. 1087), relating to closed 

18 school discharge, shall apply with respect to any loans dis19 charged on or after the date of enactment of this Act under 

20 section 464(g) of such Act (20 U.S.C. 10877dd(g)), as in 

21 effect pursuant to subsection (a)). 

22 SEC. 462. FEDERAL ONE LOAN PROGRAM. 

23 Part E of title IV (20 U.S.C. 1087aa et seq.) is amend24 ed to read as follows: 


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1 ‘‘PART E—FEDERAL ONE LOAN PROGRAM 

2 ‘‘SEC. 461. PROGRAM AUTHORITY. 

3 ‘‘(a) IN GENERAL.—There are hereby made available, 

4 in accordance with the provisions of this part, such sums 

5 as may be necessary to make loans to all eligible students 

6 (and the eligible parents of such students) in attendance 

7 at participating institutions of higher education selected by 

8 the Secretary to enable such students to pursue their courses 

9 of study at such institutions during the period beginning 

10 July 1, 2019. Loans made under this part shall be made 

11 by participating institutions that have agreements with the 

12 Secretary to originate loans. 

13 ‘‘(b) DESIGNATION.—The program established under 

14 this part shall be referred to as the ‘Federal ONE Loan Pro15 gram’. 

16 ‘‘(c) ONE LOANS.—Except as otherwise specified in 

17 this part, loans made to borrowers under this part shall 

18 be known as ‘Federal ONE Loans’. 

19 ‘‘SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS. 

20 ‘‘(a) IN GENERAL.—The Secretary shall provide, on 

21 the basis of eligibility of students at each participating in22 stitution, and parents of such students, for such loans, funds 

23 for student and Parent Loans under this part directly to 

24 an institution of higher education that has an agreement 

25 with the Secretary under section 464(a) to participate in 

26 the Federal ONE Loan Program under this part and that 


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1 also has an agreement with the Secretary under section 

2 464(b) to originate loans under this part. 

3 ‘‘(b) PARALLEL TERMS.—Subsections (b), (c), and (d) 

4 of section 452 shall apply to the loan program under this 

5 part in the same manner that such subsections apply to 

6 the loan program under part D. 

7 ‘‘SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPA8 TION AND ORIGINATION. 

9 ‘‘(a) GENERAL AUTHORITY.—The Secretary shall enter 

10 into agreements pursuant to section 464(a) with institu11 tions of higher education to participate in the Federal ONE 

12 Loan Program under this part, and agreements pursuant 

13 to section 464(b) with institutions of higher education, to 

14 originate loans in such program, for academic years begin15 ning on or after July 1, 2019. Such agreements for the aca16 demic year 2019–2020 shall, to the extent feasible, be en17 tered into not later than January 1, 2019. 

18 ‘‘(b) SELECTION CRITERIA AND PROCEDURE.—The 

19 application and selection procedure for an institution of 

20 higher education desiring to participate in the loan pro21 gram under this part shall be the application and selection 

22 procedure described in section 453(b) for an institution of 

23 higher education desiring to participate in the loan pro24 gram under part D. 


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1 ‘‘(c) ELIGIBLE INSTITUTIONS.—The Secretary may 

2 not select an institution of higher education for participa3 tion under this part unless such institution is an eligible 

4 institution under section 487(a). 

5 ‘‘SEC. 464. AGREEMENTS WITH INSTITUTIONS. 

6 ‘‘(a) PARTICIPATION AGREEMENTS.—An agreement 

7 with any institution of higher education for participation 

8 in the Federal ONE Loan Program under this part shall— 

9 ‘‘(1) provide for the establishment and mainte10 nance of a direct student loan program at the institu11 tion under which the institution will— 

12 ‘‘(A) identify eligible students who seek stu13 dent financial assistance at such institution in 

14 accordance with section 484; 

15 ‘‘(B) provide a statement that certifies the 

16 eligibility of any student to receive a loan under 

17 this part that is not in excess of the annual or 

18 aggregate limit applicable to such loan, except 

19 that the institution may, in exceptional cir20 cumstances identified by the Secretary pursuant 

21 to section 454(a)(1)(C), refuse to certify a state22 ment that permits a student to receive a loan 

23 under this part, if the reason for such action is 

24 documented and provided in written form to 

25 such student; 


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1 ‘‘(C) set forth a schedule for disbursement of 

2 the proceeds of the loan in installments, con3 sistent with the requirements of section 465(a); 

4 and 

5 ‘‘(D) provide timely and accurate informa6 tion, concerning the status of student borrowers 

7 (and students on whose behalf parents borrow 

8 under this part) while such students are in at9 tendance at the institution and concerning any 

10 new information of which the institution becomes 

11 aware for such students (or their parents) after 

12 such borrowers leave the institution, to the Sec13 retary for the servicing and collecting of loans 

14 made under this part; 

15 ‘‘(2) provide assurances that the institution will 

16 comply with requirements established by the Secretary 

17 relating to student loan information with respect to 

18 loans made under this part; 

19 ‘‘(3) provide that the institution accepts respon20 sibility and financial liability stemming from its fail21 ure to perform its functions pursuant to the agree22 ment; 

23 ‘‘(4) provide for the implementation of a quality 

24 assurance system, as established by the Secretary and 

25 developed in consultation with institutions of higher 


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1 education, to ensure that the institution is complying 

2 with program requirements and meeting program ob3 jectives; and 

4 ‘‘(5) provide that the institution will not charge 

5 any fees of any kind, however described, to student or 

6 parent borrowers for origination activities or the pro7 vision of any information necessary for a student or 

8 parent to receive a loan under this part, or any bene9 fits associated with such loan. 

10 ‘‘(b) ORIGINATION.—An agreement with any institu11 tion of higher education for the origination of loans under 

12 this part shall— 

13 ‘‘(1) supplement the agreement entered into in 

14 accordance with subsection (a); 

15 ‘‘(2) include provisions established by the Sec16 retary that are similar to the participation agreement 

17 provisions described in paragraphs (2), (3), (4), and 

18 (5) of subsection (a), as modified to relate to the 

19 origination of loans by the institution; 

20 ‘‘(3) provide that the institution will originate 

21 loans to eligible students and parents in accordance 

22 with this part; and 

23 ‘‘(4) provide that the note or evidence of obliga24 tion on the loan shall be the property of the Secretary. 

25 ‘‘(c) WITHDRAWAL PROCEDURES.— 


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1 ‘‘(1) IN GENERAL.—An institution of higher edu2 cation participating in the Federal ONE Loan Pro3 gram under this part may withdraw from the pro4 gram by providing written notice to the Secretary of 

5 the intent to withdraw not less than 60 days before 

6 the intended date of withdrawal. 

7 ‘‘(2) DATE OF WITHDRAWAL.—Except in cases in 

8 which the Secretary and an institution of higher edu9 cation agree to an earlier date, the date of withdrawal 

10 from the Federal ONE Loan Program under this part 

11 of an institution of higher education shall be the later 

12 of— 

13 ‘‘(A) 60 days after the institution submits 

14 the notice required under paragraph (1); or 

15 ‘‘(B) a date designated by the institution. 

16 ‘‘SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIM17 ITS, INTEREST RATES, AND LOAN FEES. 

18 ‘‘(a) REQUIREMENTS FOR DISBURSEMENT OF STU19 DENT LOANS.— 

20 ‘‘(1) MULTIPLE DISBURSEMENT REQUIRED.— 

21 ‘‘(A) REQUIRED DISBURSEMENTS.—The 

22 proceeds of any loan made under this part that 

23 is made for any period of enrollment shall be 

24 disbursed as follows: 


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1 ‘‘(i) The disbursement of the first in2 stallment of proceeds shall, with respect to 

3 any student other than a student described 

4 in subparagraph (B)(i), be made not more 

5 than 30 days prior to the beginning of the 

6 period of enrollment, and not later than 30 

7 days after the beginning of such period of 

8 enrollment. 

9 ‘‘(ii) The disbursement of an install10 ment of proceeds shall be made in substan11 tially equal monthly or weekly installments 

12 over the period of enrollment for which the 

13 loan was made, except that installments 

14 may be unequal as necessary to permit the 

15 institution to adjust for unequal costs 

16 (which may include upfront costs such as 

17 tuition and fees) incurred or estimated fi18 nancial assistance received by the student, 

19 or based on the academic progress of the 

20 student. 

21 ‘‘(B) DISBURSEMENT OF CREDIT BAL22 ANCES.— 

23 ‘‘(i) TYPE OF DISBURSEMENT.—The 

24 credit balances of any loan made under this 


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1 part that is made for any period of enroll2 ment shall be disbursed by— 

3 ‘‘(I) an electronic transfer of 

4 funds to the borrower’s financial ac5 count; 

6 ‘‘(II) a check for the amount pay7 able to, and requiring the endorsement 

8 of, the borrower; 

9 ‘‘(III) an access device in accord10 ance with clause (ii); or 

11 ‘‘(IV) a cash payment for which 

12 the institution obtains a receipt signed 

13 by the borrower. 

14 ‘‘(ii) USAGE OF ACCESS DEVICE.—An 

15 institution may enter into an agreement 

16 with a third-party servicer for the delivery 

17 of funds awarded under this part in which 

18 the third-party servicer provides the bor19 rower with an unvalidated access device for 

20 accessing credit balances of any loan if— 

21 ‘‘(I) the agreement provides that 

22 the access device must bear a promi23 nent disclosure informing the borrower 

24 that the borrower is not required to use 

25 such access device and open such an 


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1 account in order to access the student’s 

2 funds under this part; 

3 ‘‘(II) the agreement provides that 

4 the consent of the borrower is obtained 

5 before the access device is validated to 

6 enable the student to access the ac7 count; 

8 ‘‘(III) the agreement provides for 

9 the protection of the borrower against 

10 fraud; and 

11 ‘‘(IV) the institution documents 

12 that it has conducted a reasonable due 

13 diligence review before entering into 

14 the agreement, and will conduct such a 

15 review at least every two years to en16 sure that— 

17 ‘‘(aa) the fees applicable to 

18 such account are, considered as a 

19 whole, below prevailing market 

20 rates; and 

21 ‘‘(bb) the terms and condi22 tions of such account are other23 wise consistent with prevailing 

24 market terms and conditions. 

25 ‘‘(C) FIRST YEAR STUDENTS.— 


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1 ‘‘(i) IN GENERAL.—The first install2 ment of the proceeds of any loan made 

3 under this part that is made to a student 

4 borrower who is entering the first year of a 

5 program of undergraduate education, and 

6 who has not previously obtained a loan 

7 under this part, shall not (regardless of the 

8 amount of such loan or the duration of the 

9 period of enrollment) be presented by the in10 stitution of higher education to the student 

11 for endorsement until 30 days after the bor12 rower begins a course of study, but may be 

13 delivered to the eligible institution prior to 

14 the end of that 30-day period. 

15 ‘‘(ii) EXEMPTION.—An institution of 

16 higher education in which each educational 

17 program has a loan repayment rate (as de18 termined under section 481B(c)) for the 

19 most recent fiscal year for which data are 

20 available that is greater than 60 percent 

21 shall be exempt from the requirements of 

22 clause (i). 

23 ‘‘(2) WITHDRAWING OF SUCCEEDING DISBURSE24 MENTS.— 


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1 ‘‘(A) WITHDRAWING STUDENTS.—In the 

2 case in which the Secretary is informed by the 

3 borrower or the institution that the borrower has 

4 ceased to be enrolled before the disbursement of 

5 the second or any succeeding installment, the 

6 Secretary shall withhold such disbursement. Any 

7 disbursement which is so withheld shall be cred8 ited to the borrower’s loan and treated as a pre9 payment on the principal of the loan. 

10 ‘‘(B) STUDENTS RECEIVING OVER11 AWARDS.—If the sum of a disbursement for any 

12 borrower and the other financial aid obtained by 

13 borrower exceeds the amount of assistance for 

14 which the borrower is eligible under this title, the 

15 institution the borrower, or dependent student, 

16 in the case of a parent borrower, is attending 

17 shall withhold and return to the Secretary the 

18 portion (or all) of such installment that exceeds 

19 such eligible amount, except that overawards per20 mitted pursuant to section 443(b)(4) shall not be 

21 construed to be overawards for purposes of this 

22 subparagraph. Any portion (or all) of a dis23 bursement installment which is so returned shall 

24 be credited to the borrower’s loan and treated as 

25 a prepayment on the principal of the loan. 


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1 ‘‘(3) EXCLUSION OF CONSOLIDATION AND FOR2 EIGN STUDY LOANS.—The provisions of this sub3 section shall not apply in the case of a Federal ONE 

4 Consolidation Loan, or a loan made to a student to 

5 cover the cost of attendance in a program of study 

6 abroad approved by the home eligible institution if 

7 each of the educational programs of such home eligible 

8 institution has a loan repayment rate (as calculated 

9 under section 481B(c)) for the most recent fiscal year 

10 for which data are available of greater than 70 per11 cent. 

12 ‘‘(4) BEGINNING OF PERIOD OF ENROLLMENT.— 

13 For purposes of this subsection, a period of enrollment 

14 begins on the first day that classes begin for the ap15 plicable period of enrollment. 

16 ‘‘(b) AMOUNT OF LOAN.— 

17 ‘‘(1) IN GENERAL.—The determination of the 

18 amount of a loan disbursed by an eligible institution 

19 under this section shall be the lesser of— 

20 ‘‘(A) an amount that is equal to the esti21 mated loan amount, as determined by the insti22 tution by calculating— 

23 ‘‘(i) the estimated cost of attendance at 

24 the institution; minus 


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1 ‘‘(ii)(I) any estimated financial assist2 ance reasonably available to such student, 

3 including assistance that the student will 

4 receive from a Federal grant, including a 

5 Federal Pell Grant, a State grant, an insti6 tutional grant, or a scholarship or grant 

7 from another source, that is known to the 

8 institution at the time the student’s deter9 mination of need is made; and 

10 ‘‘(II) in the case of a loan to a parent, 

11 the amount of a loan awarded under this 

12 part to the parent’s child; or 

13 ‘‘(B) the maximum Federal loan amount for 

14 which such borrower is eligible in accordance 

15 with paragraph (2). 

16 ‘‘(2) LOAN LIMITS.— 

17 ‘‘(A) ANNUAL LIMITS.—Except as provided 

18 under subparagraph (B), (C), or (D), the 

19 amount of loans made under this part that an 

20 eligible student or parent borrower may borrow 

21 for an academic year shall be as follows: 

22 ‘‘(i) UNDERGRADUATE STUDENTS.— 

23 With respect to enrollment in a program of 

24 undergraduate education at an eligible in25 stitution— 


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1 ‘‘(I) in the case of a dependent 

2 student— 

3 ‘‘(aa) who has not success4 fully completed the first year of a 

5 program of undergraduate edu6 cation, $7,500; 

7 ‘‘(bb) who has successfully 

8 completed such first year but has 

9 not successfully completed the re10 mainder of a program of under11 graduate education, $8,500; and 

12 ‘‘(cc) who has successfully 

13 completed the first and second 

14 years of a program of under15 graduate education but has not 

16 successfully completed the remain17 der of such program, $9,500; 

18 ‘‘(II) in the case of an inde19 pendent student, or a dependent stu20 dent whose parents are unable to bor21 row a loan under this part on behalf of 

22 such student— 

23 ‘‘(aa) who has not success24 fully completed the first year of a 


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1 program of undergraduate edu2 cation, $11,500; 

3 ‘‘(bb) who has successfully 

4 completed such first year but has 

5 not successfully completed the re6 mainder of a program of under7 graduate education, $12,500; and 

8 ‘‘(cc) who has successfully 

9 completed the first and second 

10 years of a program of under11 graduate education but has not 

12 successfully completed the remain13 der of such program, $14,500; and 

14 ‘‘(III) in the case of a student who 

15 is enrolled in a program of under16 graduate education that is less than 

17 one academic year, the maximum an18 nual loan amount that such student 

19 may receive may not exceed the 

20 amount that bears the same ratio to 

21 the amount specified in subclause (I) 

22 or (II), as applicable, as the length of 

23 such program measured in semester, 

24 trimester, quarter, or clock hours bears 

25 to one academic year. 


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1 ‘‘(ii) GRADUATE OR PROFESSIONAL

2 STUDENTS.—In the case of a graduate or 

3 professional student for enrollment in a pro4 gram of graduate or professional education 

5 at an eligible institution, $28,500. 

6 ‘‘(iii) PARENT BORROWERS.—In the 

7 case of a parent borrowing a loan under 

8 this part on behalf of a dependent student 

9 for the student’s enrollment in a program of 

10 undergraduate education at an eligible in11 stitution, $12,500 per each such student. 

12 ‘‘(iv) COURSEWORK FOR UNDER13 GRADUATE ENROLLMENT.—With respect to 

14 enrollment in coursework specified in sec15 tion 484(b)(3)(B) necessary for enrollment 

16 in an undergraduate degree or certificate 

17 program— 

18 ‘‘(I) in the case of a dependent 

19 student, $2,625; 

20 ‘‘(II) in the case of a parent bor21 rowing a loan under this part on be22 half of a dependent student for the stu23 dent’s enrollment in such coursework, 

24 $6,000; and 


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1 ‘‘(III) in the case an independent 

2 student, or a dependent student whose 

3 parents are unable to borrow a loan 

4 under this part on behalf of such stu5 dent, $8,625. 

6 ‘‘(v) COURSEWORK FOR GRADUATE OR

7 PROFESSIONAL ENROLLMENT OR TEACHER

8 EMPLOYMENT.—With respect to the enroll9 ment of a student who has obtained a bac10 calaureate degree in coursework specified in 

11 section 484(b)(3)(B) necessary for enroll12 ment in a graduate or professional degree 

13 or certificate program, or coursework speci14 fied in section 484(b)(4)(B) necessary for a 

15 professional credential or certification from 

16 a State required for employment as a teach17 er in an elementary or secondary school, in 

18 the case of a student (without regard to 

19 whether the student is a dependent student 

20 or dependent student), $12,500. 

21 ‘‘(B) AGGREGATE LIMITS.—Except as pro22 vided under subparagraph (C), (D), or (E), the 

23 maximum aggregate amount of loans under this 

24 part and parts B and D that an eligible student 

25 or parent borrower may borrow shall be— 


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1 ‘‘(i) for enrollment in a program of 

2 undergraduate education at an eligible in3 stitution, including for enrollment in 

4 coursework described in clause (iv) or (v) of 

5 subparagraph (A)— 

6 ‘‘(I) in the case of a dependent 

7 student, $39,000; 

8 ‘‘(II) in the case of an inde9 pendent student, or an dependent stu10 dent whose parents are unable to re11 ceive a loan under this part on behalf 

12 of such student, $60,250; and 

13 ‘‘(III) in the case of a parent bor14 rowing a loan under this part on be15 half of a dependent student for the stu16 dent’s enrollment in such a program, 

17 $56,250 per each such student. 

18 ‘‘(ii) in the case of a graduate or pro19 fessional student for enrollment in a pro20 gram of graduate or professional education 

21 at an eligible institution, $150,000. 

22 ‘‘(C) APPLICATION OF LIMITS TO BOR23 ROWERS WITH PART B OR D LOANS.— 

24 ‘‘(i) GRADUATE OR PROFESSIONAL

25 STUDENTS.—In the case of a graduate or 


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1 professional student who is not described in 

2 subparagraph (E) and who has received 

3 loans made under part B or D for enroll4 ment in a graduate or professional program 

5 at an eligible institution, the total amount 

6 of which equal or exceed $28,500 as of the 

7 time of disbursement, the student may con8 tinue to borrow the amount of loans under 

9 this part necessary to complete such pro10 gram without regard to the aggregate limit 

11 under subparagraph (B)(ii), except that 

12 the— 

13 ‘‘(I) amount of such loans shall 

14 not exceed the annual limits under 

15 subparagraph (A)(ii) for any academic 

16 year beginning after June 30, 2019; 

17 and 

18 ‘‘(II) authority to borrow loans in 

19 accordance with this subclause shall 

20 terminate at the end of the academic 

21 year ending before September 30, 2024. 

22 ‘‘(ii) PARENT BORROWERS.—In the 

23 case of a parent borrower who has received 

24 loans made under part B or D on behalf of 

25 a dependent student for the student’s enrollVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00309 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ment in a program of undergraduate edu2 cation at an eligible institution, the total 

3 amount of which equal or exceed $12,500 for 

4 such student as of the time of disbursement, 

5 the parent borrower may continue to borrow 

6 the amount of loans under this part nec7 essary for such student to complete such 

8 program without regard to the aggregate 

9 limit under subparagraph (B)(i)(III), ex10 cept that the— 

11 ‘‘(I) amount of such loans shall 

12 not exceed the annual limits under 

13 subparagraph (A)(iii) for any aca14 demic year beginning after June 30, 

15 2019; and 

16 ‘‘(II) the authority to borrow 

17 loans in accordance with this subclause 

18 shall terminate at the end of the aca19 demic year ending before September 

20 30, 2024. 

21 ‘‘(D) INSTITUTIONAL DETERMINED LIM22 ITS.— 

23 ‘‘(i) IN GENERAL.—Notwithstanding 

24 any other provision of this subsection, an el25 igible institution (at the discretion of a fiVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00310 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 nancial aid administrator at the institu2 tion) may prorate or limit the amount of a 

3 loan any student enrolled in a program of 

4 study at that institution may borrow under 

5 this part for an academic year— 

6 ‘‘(I) if the institution, using the 

7 most recently available data from the 

8 Bureau of Labor Statistics for the av9 erage starting salary in the region in 

10 which the institution is located for typ11 ical occupations pursued by graduates 

12 of such program, can reasonably dem13 onstrate that student debt levels are or 

14 would be excessive for such program; 

15 ‘‘(II) in a case in which the stu16 dent is enrolled on a less than full-time 

17 basis or the student is enrolled for less 

18 than the period of enrollment to which 

19 the annual loan limit applies under 

20 this subsection, based on the student’s 

21 enrollment status; 

22 ‘‘(III) based on the credential level 

23 (such as a degree, certificate, or other 

24 recognized educational credential) that 


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1 the student would attain upon comple2 tion of such program; or 

3 ‘‘(IV) based on the year of the 

4 program for which the student is seek5 ing such loan. 

6 ‘‘(ii) APPLICATION TO ALL STU7 DENTS.—Any proration or limiting of loan 

8 amounts under clause (i) shall be applied in 

9 the same manner to all students enrolled in 

10 the institution or program of study. 

11 ‘‘(iii) INCREASES FOR INDIVIDUAL

12 STUDENTS.—Upon the request of a student 

13 whose loan amount for an academic year 

14 has been prorated or limited under clause 

15 (i), an eligible institution (at the discretion 

16 of the financial aid administrator at the in17 stitution) may increase such loan amount 

18 to an amount not exceeding the annual loan 

19 amount applicable to such student under 

20 this subparagraph for such academic year if 

21 such student demonstrates special cir22 cumstances or exceptional need. 

23 ‘‘(E) INCREASES FOR CERTAIN GRADUATE

24 OR PROFESSIONAL STUDENTS.— 


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1 ‘‘(i) ADDITIONAL ANNUAL AMOUNTS.— 

2 Subject to clause (iii) of this subparagraph, 

3 in addition to the loan amount for an aca4 demic year described in subparagraph 

5 (A)(ii)— 

6 ‘‘(I) a graduate or professional 

7 student who is enrolled in a program 

8 of study to become a doctor of 

9 allopathic medicine, doctor of osteo10 pathic medicine, doctor of dentistry, 

11 doctor of veterinary medicine, doctor of 

12 optometry, doctor of podiatric medi13 cine, doctor of naturopathic medicine, 

14 or doctor of naturopathy may borrow 

15 an additional— 

16 ‘‘(aa) in the case of a pro17 gram with a 9-month academic 

18 year, $20,000 for an academic 

19 year; or 

20 ‘‘(bb) in the case of a pro21 gram with a 12-month academic 

22 year, $26,667 for an academic 

23 year; and 

24 ‘‘(II) a graduate or professional 

25 student who is enrolled in a program 


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1 of study to become a doctor of phar2 macy, doctor of chiropractic medicine, 

3 or a physician’s assistant, or receive a 

4 graduate degree in public health, doc5 toral degree in clinical psychology, or 

6 a masters or doctoral degree in health 

7 administration may borrow an addi8 tional— 

9 ‘‘(aa) in the case of a pro10 gram with a 9-month academic 

11 year, $12,500 for an academic 

12 year; or 

13 ‘‘(bb) in the case of a pro14 gram with a 12-month academic 

15 year, $16,667 for an academic 

16 year. 

17 ‘‘(ii) AGGREGATE LIMIT.—Subject to 

18 clause (iii) of this subparagraph, the max19 imum aggregate amount of loans under this 

20 part and parts B and D that a student de21 scribed in clause (i) may borrow shall be 

22 $235,500. 

23 ‘‘(iii) LIMITATION.—In the case of a 

24 graduate or professional student described 

25 in clause (i) of this subparagraph who has 


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1 received loans made under part B or D for 

2 enrollment in a graduate or professional 

3 program at an eligible institution, the total 

4 amount of which equal or exceed $28,500 as 

5 of the time of disbursement, the student may 

6 continue to borrow the amount of loans 

7 under this part necessary to complete such 

8 program without regard to the aggregate 

9 limit under clause (ii) of this subpara10 graph, except that the— 

11 ‘‘(I) amount of such loans shall 

12 not exceed the annual limits under 

13 clause (i) of this subparagraph for any 

14 academic year beginning after June 

15 30, 2019; and 

16 ‘‘(II) authority to borrow loans in 

17 accordance with this subclause shall 

18 terminate at the end of the academic 

19 year ending before September 30, 2024. 

20 ‘‘(c) INTEREST RATE PROVISIONS FOR FEDERAL ONE 

21 LOANS.— 

22 ‘‘(1) UNDERGRADUATE ONE LOANS.—For Fed23 eral ONE Loans issued to undergraduate students, the 

24 applicable rate of interest shall, for loans disbursed 

25 during any 12-month period beginning on July 1 and 


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1 ending on June 30, be determined on the preceding 

2 June 1 and be equal to the lesser of— 

3 ‘‘(A) a rate equal to the high yield of the 

4 10-year Treasury note auctioned at the final 

5 auction held prior to such June 1 plus 2.05 per6 cent; or 

7 ‘‘(B) 8.25 percent. 

8 ‘‘(2) GRADUATE AND PROFESSIONAL ONE

9 LOANS.—For Federal ONE Loans issued to graduate 

10 or professional students, the applicable rate of interest 

11 shall, for loans disbursed during any 12-month period 

12 beginning on July 1 and ending on June 30, be deter13 mined on the preceding June 1 and be equal to the 

14 lesser of— 

15 ‘‘(A) a rate equal to the high yield of the 

16 10-year Treasury note auctioned at the final 

17 auction held prior to such June 1 plus 3.6 per18 cent; or 

19 ‘‘(B) 9.5 percent. 

20 ‘‘(3) PARENT ONE LOANS.—For Federal ONE 

21 Parent Loans, the applicable rate of interest shall, for 

22 loans disbursed during any 12-month period begin23 ning on July 1 and ending on June 30, be determined 

24 on the preceding June 1 and be equal to the lesser 

25 of— 


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1 ‘‘(A) a rate equal to the high yield of the 

2 10-year Treasury note auctioned at the final 

3 auction held prior to such June 1 plus 4.6 per4 cent; or 

5 ‘‘(B) 10.5 percent. 

6 ‘‘(4) CONSOLIDATION LOANS.—Any Federal ONE 

7 Consolidation Loan for which the application is re8 ceived on or after July 1, 2019, shall bear interest at 

9 an annual rate on the unpaid principal balance of 

10 the loan that is equal to the weighted average of the 

11 interest rates on the loans consolidated, rounded to 

12 the nearest higher one-eighth of one percent. 

13 ‘‘(5) PUBLICATION.—The Secretary shall deter14 mine the applicable rates of interest under this sub15 section after consultation with the Secretary of the 

16 Treasury and shall publish such rate in the Federal 

17 Register as soon as practicable after the date of deter18 mination. 

19 ‘‘(6) RATE.—The applicable rate of interest de20 termined under this subsection for a loan under this 

21 part shall be fixed for the period of the loan. 

22 ‘‘(d) PROHIBITION ON CERTAIN REPAYMENT INCEN23 TIVES.—Notwithstanding any other provision of this part, 

24 the Secretary is prohibited from authorizing or providing 

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1 ized under this part to encourage on-time repayment of a 

2 loan under this part, including any reduction in the inter3 est paid by a borrower of such a loan, except that the Sec4 retary may provide for an interest rate reduction of not 

5 more than 0.25 percentage points for a borrower who agrees 

6 to have payments on such a loan automatically debited 

7 from a bank account. 

8 ‘‘(e) LOAN FEE.—The Secretary shall not charge the 

9 borrower of a loan made under this part an origination 

10 fee. 

11 ‘‘(f) ARMED FORCES STUDENT LOAN INTEREST PAY12 MENT PROGRAM.— 

13 ‘‘(1) AUTHORITY.—Using funds received by 

14 transfer to the Secretary under section 2174 of title 

15 10, United States Code, for the payment of interest on 

16 a loan made under this part to a member of the 

17 Armed Forces, the Secretary shall pay the interest on 

18 the loan as due for a period not in excess of 36 con19 secutive months. The Secretary may not pay interest 

20 on such a loan out of any funds other than funds that 

21 have been so transferred. 

22 ‘‘(2) DEFERMENT.—During the period in which 

23 the Secretary is making payments on a loan under 

24 paragraph (1), the Secretary shall grant the borrower 

25 administrative deferment, in the form of a temporary 


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1 cessation of all payments on the loan other than the 

2 payments of interest on the loan that are made under 

3 that paragraph. 

4 ‘‘(g) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY

5 SERVICE MEMBERS.— 

6 ‘‘(1) IN GENERAL .—Notwithstanding any other 

7 provision of this part and in accordance with para8 graphs (2) and (4), interest shall not accrue for an 

9 eligible military borrower on a loan made under this 

10 part. 

11 ‘‘(2) CONSOLIDATION LOANS.—In the case of any 

12 consolidation loan made under this part, interest 

13 shall not accrue pursuant to this subsection only on 

14 such portion of such loan as was used to repay a loan 

15 made under this part or a loan made under part D 

16 for which the first disbursement was made on or after 

17 October 1, 2008, and before July 1, 2019. 

18 ‘‘(3) ELIGIBLE MILITARY BORROWER.—In this 

19 subsection, the term ‘eligible military borrower’ means 

20 an individual who— 

21 ‘‘(A)(i) is serving on active duty during a 

22 war or other military operation or national 

23 emergency; or 


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1 ‘‘(ii) is performing qualifying National 

2 Guard duty during a war or other military op3 eration or national emergency; and 

4 ‘‘(B) is serving in an area of hostilities in 

5 which service qualifies for special pay under sec6 tion 310 of title 37, United States Code. 

7 ‘‘(4) LIMITATION.—An individual who qualifies 

8 as an eligible military borrower under this subsection 

9 may receive the benefit of this subsection for not more 

10 than 60 months. 

11 ‘‘SEC. 466. REPAYMENT. 

12 ‘‘(a) REPAYMENT PERIOD; COMMENCEMENT OF RE13 PAYMENT.— 

14 ‘‘(1) REPAYMENT PERIOD.— 

15 ‘‘(A) IN GENERAL.—In the case of a Federal 

16 ONE Loan (other than a Federal ONE Consoli17 dation Loan or a Federal ONE Parent Loan)— 

18 ‘‘(i) subject to clause (ii), the repay19 ment period shall— 

20 ‘‘(I) exclude any period of author21 ized deferment under section 469A; and 

22 ‘‘(II) begin the day after 6 months 

23 after the date the student ceases to 

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1 time academic workload (as deter2 mined by the institution); and 

3 ‘‘(ii) interest shall begin to accrue or 

4 be paid by the borrower on the day the loan 

5 is disbursed. 

6 ‘‘(B) CONSOLIDATION AND PARENT

7 LOANS.—In the case of a Federal ONE Consoli8 dation Loan or a Federal ONE Parent Loan, the 

9 repayment period shall— 

10 ‘‘(i) exclude any period of authorized 

11 deferment; and 

12 ‘‘(ii) begin— 

13 ‘‘(I) on the day the loan is dis14 bursed; or 

15 ‘‘(II) if the loan is disbursed in 

16 multiple installments, on the day of the 

17 last such disbursement. 

18 ‘‘(C) ACTIVE DUTY EXCLUSION.—There shall 

19 be excluded from the 6-month period that begins 

20 on the date on which a student ceases to carry 

21 at least one-half the normal full-time academic 

22 workload as described in subparagraph (A) any 

23 period not to exceed 3 years during which a bor24 rower who is a member of a reserve component 

25 of the Armed Forces named in section 10101 of 


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1 title 10, United States Code, is called or ordered 

2 to active duty for a period of more than 30 days 

3 (as defined in section 101(d)(2) of such title). 

4 Such period of exclusion shall include the period 

5 necessary to resume enrollment at the borrower’s 

6 next available regular enrollment period. 

7 ‘‘(2) PAYMENT OF PRINCIPAL AND INTEREST.— 

8 ‘‘(A) COMMENCEMENT OF REPAYMENT.—Re9 payment of principal on loans made under this 

10 part shall begin at the beginning of the repay11 ment period described in paragraph (1). 

12 ‘‘(B) CAPITALIZATION OF INTEREST.— 

13 ‘‘(i) IN GENERAL.—Interest on loans 

14 made under this part for which payments of 

15 principal are not required during the 6- 

16 month period described in paragraph 

17 (1)(A)(i)(II) or for which payments are de18 ferred under section 469A shall— 

19 ‘‘(I) be paid monthly or quarterly; 

20 or 

21 ‘‘(II) be added to the principal 

22 amount of the loan only— 

23 ‘‘(aa) when the loan enters 

24 repayment; 


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1 ‘‘(bb) at the expiration of a 

2 the 6-month period described in 

3 paragraph (1)(A)(i)(II); 

4 ‘‘(cc) at the expiration of a 

5 period of deferment, unless other6 wise exempted; or 

7 ‘‘(dd) when the borrower de8 faults. 

9 ‘‘(ii) MAXIMUM AGGREGATE LIMIT.— 

10 Interest capitalized shall not be deemed to 

11 exceed the amount equal to the maximum 

12 aggregate limit of the loan under section 

13 465(b). 

14 ‘‘(C) NOTICE.—Not less than 60 days, and 

15 again not less than 30 days, prior to the antici16 pated commencement of the repayment period for 

17 a Federal ONE Loan, the Secretary shall provide 

18 notice to the borrower— 

19 ‘‘(i) that interest will accrue before re20 payment begins; 

21 ‘‘(ii) that interest will be added to the 

22 principal amount of the loan in the cases 

23 described in subparagraph (B)(i)(II); and 


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1 ‘‘(iii) of the borrower’s option to begin 

2 loan repayment prior to such repayment 

3 period. 

4 ‘‘(b) REPAYMENT AMOUNT.— 

5 ‘‘(1) IN GENERAL.—The total of the payments by 

6 a borrower, except as otherwise provided by an in7 come-based repayment plan under subsection (d), dur8 ing any year of any repayment period with respect 

9 to the aggregate amount of all loans made under this 

10 part to the borrower shall not (unless the borrower 

11 and the Secretary otherwise agree), be less than $600 

12 or the balance of all such loans (together with interest 

13 thereon), whichever amount is less (but in no instance 

14 less than the amount of interest due and payable, not15 withstanding any repayment plan described in sub16 section (c)). 

17 ‘‘(2) AMORTIZATION.— 

18 ‘‘(A) INTEREST RATE.—The amount of the 

19 periodic payment and the repayment schedule 

20 for a loan made under this part shall be estab21 lished by assuming an interest rate equal to the 

22 applicable rate of interest at the time of the first 

23 disbursement of the loan. 

24 ‘‘(B) ADJUSTMENT TO REPAYMENT

25 AMOUNT.—The note or other written evidence of 


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1 a loan under this part shall require that the 

2 amount of the periodic payment will be adjusted 

3 annually in order to reflect adjustments in— 

4 ‘‘(i) interest rates occurring as a con5 sequence of variable rate loans under parts 

6 B or D paid in conjunction with Federal 

7 ONE Loans under subsection (d)(1)(B)(i); 

8 or 

9 ‘‘(ii) principal occurring as a con10 sequence of interest capitalization under 

11 subsection (a)(2)(B). 

12 ‘‘(c) REPAYMENT PLANS.— 

13 ‘‘(1) DESIGN AND SELECTION.—Not more than 6 

14 months prior to the date on which a borrower’s first 

15 payment on a loan made under this part is due, the 

16 Secretary shall offer the borrower two plans for re17 payment of such loan, including principal and inter18 est on the loan. The borrower shall be entitled to ac19 celerate, without penalty, repayment on the bor20 rower’s loans under this part. The borrower may 

21 choose— 

22 ‘‘(A) a standard repayment plan with a 

23 fixed monthly repayment amount paid over a 

24 fixed period of time, not to exceed 10 years; or 


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1 ‘‘(B) an income-based repayment plan 

2 under subsection (d). 

3 ‘‘(2) SELECTION BY SECRETARY.—If a borrower 

4 of a loan made under this part does not select a re5 payment plan described in paragraph (1), the Sec6 retary shall provide the borrower with the repayment 

7 plan described in paragraph (1)(A). 

8 ‘‘(3) CHANGES IN SELECTIONS.— 

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), the borrower of a loan made under 

11 this part may change the borrower’s selection of 

12 a repayment plan under paragraph (1), or the 

13 Secretary’s selection of a plan for the borrower 

14 under paragraph (2), as the case may be, under 

15 such terms and conditions as may be established 

16 by the Secretary, except that the Secretary may 

17 not establish any terms or conditions with re18 spect to whether a borrower may change the bor19 rower’s repayment plan. Nothing in this sub20 section shall prohibit the Secretary from encour21 aging struggling borrowers from enrolling in the 

22 income-driven repayment plan described in sec23 tion 466(d). 

24 ‘‘(B) SAME REPAYMENT PLAN REQUIRED.— 

25 All loans made under this part to a borrower 


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1 shall be repaid under the same repayment plan 

2 under paragraph (1), except that the borrower 

3 may repay a Federal ONE Parent Loan or an 

4 Excepted Federal ONE Consolidation Loan (as 

5 defined in subsection (d)(5)) separately from 

6 other loans made under this part to the bor7 rower. 

8 ‘‘(4) REPAYMENT AFTER DEFAULT.—The Sec9 retary may require any borrower who has defaulted 

10 on a loan made under this part to— 

11 ‘‘(A) pay all reasonable collection costs asso12 ciated with such loan; and 

13 ‘‘(B) repay the loan pursuant to the in14 come-based repayment plan under subsection (d). 

15 ‘‘(5) REPAYMENT PERIOD.—For purposes of cal16 culating the repayment period under this subsection, 

17 such period shall commence at the time the first pay18 ment of principal is due from the borrower. 

19 ‘‘(6) INSTALLMENTS.— Repayment of loans 

20 under this part shall be in installments in accordance 

21 with the repayment plan selected under paragraph 

22 (1) and commencing at the beginning of the repay23 ment period determined under paragraph (5). 

24 ‘‘(d) INCOME-BASED REPAYMENT PROGRAM.— 


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1 ‘‘(1) IN GENERAL.—Notwithstanding any other 

2 provision of this Act, the Secretary shall carry out a 

3 program under which— 

4 ‘‘(A) a borrower of any loan made under 

5 this part (other than a Federal ONE Parent 

6 Loan or an Excepted Federal ONE Consolida7 tion Loan) may elect to have the borrower’s ag8 gregate monthly payment for all such loans— 

9 ‘‘(i) not to exceed the result obtained 

10 by dividing by 12, 15 percent of the result 

11 obtained by calculating, on at least an an12 nual basis, the amount by which— 

13 ‘‘(I) the adjusted gross income of 

14 the borrower or, if the borrower is mar15 ried and files a Federal income tax re16 turn jointly with or separately from 

17 the borrower’s spouse, the adjusted 

18 gross income of the borrower and the 

19 borrower’s spouse; exceeds 

20 ‘‘(II) 150 percent of the poverty 

21 line applicable to the borrower’s family 

22 size as determined under section 673(2) 

23 of the Community Services Block 

24 Grant Act (42 U.S.C. 9902(2)); and 

25 ‘‘(ii) not to be less than $25; 


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1 ‘‘(B) the Secretary adjusts the calculated 

2 monthly payment under subparagraph (A), if— 

3 ‘‘(i) in addition to the loans described 

4 in subparagraph (A), the borrower has an 

5 outstanding loan made under part B or D 

6 (other than an excepted parent loan or an 

7 excepted consolidation loan, as such terms 

8 are defined in section 493C(a)), by deter9 mining the borrower’s adjusted monthly 

10 payment by multiplying— 

11 ‘‘(I) the calculated monthly pay12 ment, by 

13 ‘‘(II) the percentage of the total 

14 outstanding principal amount of the 

15 borrower’s loans described in the mat16 ter preceding subclause (I), which are 

17 described in subparagraph (A); 

18 ‘‘(ii) the borrower and borrower’s 

19 spouse have loans described in subpara20 graph (A) and outstanding loans under 

21 part B or D (other than an excepted parent 

22 loan or an excepted consolidation loan, as 

23 such terms are defined in section 493C(a)) 

24 and have filed a joint or separate Federal 


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1 income tax return, in which case the Sec2 retary determines— 

3 ‘‘(I) each borrower’s percentage of 

4 the couple’s total outstanding amount 

5 of principal on such loans; 

6 ‘‘(II) the adjusted monthly pay7 ment for each borrower by multiplying 

8 the borrower’s calculated monthly pay9 ment by the percentage determined 

10 under subclause (I) applicable to the 

11 borrower; and 

12 ‘‘(III) if the borrower’s loans are 

13 held by multiple holders, the borrower’s 

14 adjusted monthly payment for loans 

15 described in subparagraph (A) by mul16 tiplying the adjusted monthly payment 

17 determined under subclause (II) by the 

18 percentage of the total outstanding 

19 principal amount of the borrower’s 

20 loans described in the matter preceding 

21 subclause (I), which are described in 

22 subparagraph (A); 

23 ‘‘(C) the holder of such a loan shall apply 

24 the borrower’s monthly payment under this sub25 section first toward interest due on the loan, next 


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1 toward any fees due on the loan, and then to2 ward the principal of the loan; 

3 ‘‘(D) any principal due and not paid under 

4 subparagraph (C) shall be deferred; 

5 ‘‘(E) any interest due and not paid under 

6 subparagraph (C) shall be capitalized, at the 

7 time the borrower— 

8 ‘‘(i) ends the election to make income9 based repayment under this subsection; or 

10 ‘‘(ii) begins making payments of not 

11 less than the amount specified in subpara12 graph (G)(i); 

13 ‘‘(F) the amount of time the borrower makes 

14 monthly payments under subparagraph (A) may 

15 exceed 10 years; 

16 ‘‘(G) if the borrower no longer wishes to 

17 continue the election under this subsection, 

18 then— 

19 ‘‘(i) the maximum monthly payment 

20 required to be paid for all loans made to the 

21 borrower under this part (other than a Fed22 eral ONE Parent Loan or an Excepted Fed23 eral ONE Consolidation Loan) shall not ex24 ceed the monthly amount calculated under 

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1 payment period, when the borrower first 

2 made the election described in this sub3 section; and 

4 ‘‘(ii) the amount of time the borrower 

5 is permitted to repay such loans may exceed 

6 10 years; 

7 ‘‘(H) the Secretary shall cancel any out8 standing balance (other than an amount equal to 

9 the interest accrued during any period of in10 school deferment under subparagraph (A), (B), 

11 or (F) of section 469A(b)(1)) due on all loans 

12 made under this part (other than a Federal ONE 

13 Parent Loan or an Excepted Federal ONE Con14 solidation Loan) to a borrower— 

15 ‘‘(i) who, at any time, elected to par16 ticipate in income-based repayment under 

17 subparagraph (A); 

18 ‘‘(ii) whose final monthly payment for 

19 such loans prior to the loan cancellation 

20 under this subparagraph was made under 

21 such income-based repayment; and 

22 ‘‘(iii) who has repaid, pursuant to in23 come-based repayment under subparagraph 

24 (A), a standard repayment plan under sub25 section (c)(1)(A), or a combination— 


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1 ‘‘(I) an amount on such loans 

2 that is equal to the total amount of 

3 principal and interest that the bor4 rower would have repaid under a 

5 standard repayment plan under sub6 section (c)(1)(A), based on a 10-year 

7 repayment period, when the borrower 

8 entered repayment on such loans; and 

9 ‘‘(II) the amount of interest that 

10 accrues during a period of deferment 

11 described in section 469A prior to the 

12 completion of the repayment period de13 scribed in subclause (I) on the portion 

14 of such loans remaining to be repaid 

15 in accordance with such subclause; and 

16 ‘‘(I) a borrower who is repaying a loan 

17 made under this part pursuant to income-based 

18 repayment under subparagraph (A) may elect, at 

19 any time during the 10-year period beginning on 

20 the date the borrower entered repayment on the 

21 loan, to terminate repayment pursuant to such 

22 income-based repayment and repay such loan 

23 under the standard repayment plan. 

24 ‘‘(2) ELIGIBILITY DETERMINATIONS.— 


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1 ‘‘(A) IN GENERAL.—The Secretary shall es2 tablish procedures for annual verification of a 

3 borrower’s annual income and the annual 

4 amount due on the total amount of loans made 

5 under this part (other than a Federal ONE Par6 ent Loan or an Excepted Federal ONE Consoli7 dation Loan), and such other procedures as are 

8 necessary to implement effectively income-based 

9 repayment under this subsection, including the 

10 procedures established with respect to section 

11 493C. 

12 ‘‘(B) INCOME INFORMATION.—The Secretary 

13 may obtain such information as is reasonably 

14 necessary regarding the income of a borrower 

15 (and the borrower’s spouse, if applicable) of a 

16 loan made under this part that is, or may be, re17 paid pursuant to income-based repayment under 

18 this subsection, for the purpose of determining 

19 the annual repayment obligation of the borrower. 

20 The Secretary shall establish procedures for de21 termining the borrower’s repayment obligation 

22 on that loan for such year, and such other proce23 dures as are necessary to implement effectively 

24 the income-based repayment under this sub25 section. 


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1 ‘‘(C) BORROWER REQUIREMENTS.—A bor2 rower who chooses to repay a loan made under 

3 this part pursuant to income-based repayment 

4 under this subsection, and— 

5 ‘‘(i) for whom adjusted gross income is 

6 available and reasonably reflects the bor7 rower’s current income, shall, to the max8 imum extent practicable, provide to the Sec9 retary the Federal tax information of the 

10 borrower; and 

11 ‘‘(ii) for whom adjusted gross income is 

12 unavailable or does not reasonably reflect 

13 the borrower’s current income, shall provide 

14 to the Secretary other documentation of in15 come satisfactory to the Secretary, which 

16 documentation the Secretary may use to de17 termine an appropriate repayment schedule. 

18 ‘‘(3) NOTIFICATION TO BORROWERS.—The Sec19 retary shall establish procedures under which a bor20 rower of a loan made under this part who chooses to 

21 repay such loan pursuant to income-based repayment 

22 under this subsection is notified of the terms and con23 ditions of such plan, including notification that if a 

24 borrower considers that special circumstances, such as 

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1 rower’s spouse, warrant an adjustment in the bor2 rower’s loan repayment as determined using the bor3 rower’s Federal tax return information, or the alter4 native documentation described in paragraph (2)(C), 

5 the borrower may contact the Secretary, who shall de6 termine whether such adjustment is appropriate, in 

7 accordance with criteria established by the Secretary. 

8 ‘‘(4) REDUCED PAYMENT PERIODS.— 

9 ‘‘(A) IN GENERAL.—The Secretary shall au10 thorize borrowers meeting the criteria under sub11 paragraph (B) to make monthly payments of $5 

12 for a period not in excess of 3 years, except 

13 that— 

14 ‘‘(i) for purposes of subparagraph 

15 (B)(i), the Secretary may authorize reduced 

16 payments in 6-month increments, beginning 

17 on the date the borrower provides to the 

18 Secretary the evidence described in sub19 clause (I) or (II) of subparagraph (B)(i); 

20 and 

21 ‘‘(ii) for purposes of subparagraph 

22 (B)(ii), the Secretary may authorize re23 duced payments in 3-month increments, be24 ginning on the date the borrower provides to 


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1 the Secretary the evidence described in sub2 paragraph (B)(ii)(I). 

3 ‘‘(B) ELIGIBILITY DETERMINATIONS.—The 

4 Secretary shall authorize borrowers to make re5 duced payments under this paragraph in the fol6 lowing circumstances: 

7 ‘‘(i) In a case of borrower who is seek8 ing and unable to find full-time employ9 ment, as demonstrated by providing to the 

10 Secretary— 

11 ‘‘(I) evidence of the borrower’s eli12 gibility for unemployment benefits to 

13 the Secretary; or 

14 ‘‘(II) a written certification or an 

15 equivalent that— 

16 ‘‘(aa) the borrower has reg17 istered with a public or private 

18 employment agency that is avail19 able to the borrower within a 50- 

20 mile radius of the borrower’s home 

21 address; and 

22 ‘‘(bb) in the case of a bor23 rower that has been granted a re24 quest under this subparagraph, 

25 the borrower has made at least six 


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1 diligent attempts during the pre2 ceding six-month period to secure 

3 full-time employment. 

4 ‘‘(ii) The Secretary determines that, 

5 due to high medical expenses, the $25 

6 monthly payment the borrower would other7 wise make would be an extreme economic 

8 hardship to the borrower, if— 

9 ‘‘(I) the borrower documents the 

10 reason why the $25 minimum pay11 ment is an extreme economic hardship; 

12 and 

13 ‘‘(II) the borrower recertifies the 

14 reason for the $5 minimum payment 

15 on a three-month basis. 

16 ‘‘(C) DEFINITION.—For purpose of this sec17 tion, the term ‘full-time employment’ means em18 ployment that will provide not less than 30 

19 hours of work a week and is expected to continue 

20 for a period of not less than 3 months. 

21 ‘‘(5) DEFINITIONS.—In this subsection: 

22 ‘‘(A) ADJUSTED GROSS INCOME.—The term 

23 ‘adjusted gross income’ has the meaning given 

24 the term in section 62 of the Internal Revenue 

25 Code of 1986. 


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1 ‘‘(B) EXCEPTED FEDERAL ONE CONSOLIDA2 TION LOAN.—The term ‘Excepted Federal ONE 

3 Consolidation Loan’ means a Federal ONE Con4 solidation Loan if the proceeds of such loan were 

5 used to discharge the liability on— 

6 ‘‘(i) a Federal ONE Parent Loan; 

7 ‘‘(ii) a Federal Direct PLUS Loan, or 

8 a loan under section 428B, that is made, 

9 insured, or guaranteed on behalf of a de10 pendent student; 

11 ‘‘(iii) an excepted consolidation loan 

12 (defined in section 493C); or 

13 ‘‘(iv) a Federal ONE Consolidation 

14 loan that was used to discharge the liability 

15 on a loan described in clause (i), (ii), or 

16 (iii). 

17 ‘‘(e) RULES OF CONSTRUCTION.—Nothing in this sec18 tion shall be construed to authorize, with respect to loans 

19 made under this part— 

20 ‘‘(1) eligibility for a repayment plan that is not 

21 described in subsection (c)(1) or section 468(c); or 

22 ‘‘(2) the Secretary to— 

23 ‘‘(A) carry out a repayment plan, which is 

24 not described in subsection (c)(1) or section 

25 468(c); or 


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1 ‘‘(B) modify a repayment plan that is de2 scribed in subsection (c)(1) or section 468(c). 

3 ‘‘SEC. 467. FEDERAL ONE PARENT LOANS. 

4 ‘‘(a) AUTHORITY TO BORROW.— 

5 ‘‘(1) AUTHORITY AND ELIGIBILITY.—The parent 

6 of a dependent student shall be eligible to borrow 

7 funds under this section in amounts specified in sub8 section (b), if— 

9 ‘‘(A) the parent is borrowing to pay for the 

10 educational costs of a dependent student who 

11 meets the requirements for an eligible student 

12 under section 484(a); 

13 ‘‘(B) the parent meets the applicable re14 quirements concerning defaults and overpay15 ments that apply to a student borrower; 

16 ‘‘(C) the parent complies with the require17 ments for submission of a statement of edu18 cational purpose that apply to a student bor19 rower under section 484(a)(4)(A) (other than the 

20 completion of a statement of selective service reg21 istration status); 

22 ‘‘(D) the parent meets the requirements that 

23 apply to a student under section 437(a); 

24 ‘‘(E) the parent— 


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1 ‘‘(i) does not have an adverse credit 

2 history; or 

3 ‘‘(ii) has an adverse credit history, but 

4 has— 

5 ‘‘(I) obtained an endorser who 

6 does not have an adverse credit history 

7 or documented to the satisfaction of the 

8 Secretary that extenuating cir9 cumstances exist in accordance with 

10 paragraph (4)(D); and 

11 ‘‘(II) completed Federal ONE 

12 Parent Loan counseling offered by the 

13 Secretary; and 

14 ‘‘(F) in the case of a parent who has been 

15 convicted of, or has pled nolo contendere or 

16 guilty to, a crime involving fraud in obtaining 

17 funds under this title, such parent has completed 

18 the repayment of such funds to the Secretary, or 

19 to the holder in the case of a loan under this title 

20 obtained by fraud. 

21 ‘‘(2) TERMS, CONDITIONS, AND BENEFITS.—Ex22 cept as provided in subsections (c), (d), and (e), loans 

23 made under this section shall have the same terms, 

24 conditions, and benefits as all other loans made under 

25 this part. 


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1 ‘‘(3) PARENT BORROWERS.— 

2 ‘‘(A) DEFINITION.—For purposes of this sec3 tion, the term ‘parent’ includes a student’s bio4 logical or adoptive mother or father or the stu5 dent’s stepparent, if the biological parent or 

6 adoptive mother or father has remarried at the 

7 time of filing the common financial reporting 

8 form under section 483(a), and that spouse’s in9 come and assets would have been taken into ac10 count when calculating the student’s expected 

11 family contribution. 

12 ‘‘(B) CLARIFICATION.—Whenever necessary 

13 to carry out the provisions of this section, the 

14 terms ‘student’ and ‘borrower’ as used in this 

15 part shall include a parent borrower under this 

16 section. 

17 ‘‘(4) ADVERSE CREDIT HISTORY DEFINITIONS

18 AND ADJUSTMENTS.— 

19 ‘‘(A) DEFINITIONS.—For purposes of this 

20 section: 

21 ‘‘(i) IN GENERAL.—The term ‘adverse 

22 credit history’, when used with respect to a 

23 borrower, means that the borrower— 

24 ‘‘(I) has one or more debts with a 

25 total combined outstanding balance 


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1 equal to or greater than $2,085, as 

2 may be adjusted by the Secretary in 

3 accordance with subparagraph (B), 

4 that— 

5 ‘‘(aa) are 90 or more days 

6 delinquent as of the date of the 

7 credit report; or 

8 ‘‘(bb) have been placed in col9 lection or charged off during the 

10 two years preceding the date of 

11 the credit report; or 

12 ‘‘(II) has been the subject of a de13 fault determination, bankruptcy dis14 charge, foreclosure, repossession, tax 

15 lien, wage garnishment, or write-off of 

16 a debt under this title during the 5 

17 years preceding the date of the credit 

18 report. 

19 ‘‘(ii) CHARGED OFF.—The term 

20 ‘charged off’ means a debt that a creditor 

21 has written off as a loss, but that is still 

22 subject to collection action. 

23 ‘‘(iii) IN COLLECTION.— The term ‘in 

24 collection’ means a debt that has been 

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1 itor or that is subject to more intensive ef2 forts by a creditor to recover amounts owed 

3 from a borrower who has not responded sat4 isfactorily to the demands routinely made 

5 as part of the creditor’s billing procedures. 

6 ‘‘(B) ADJUSTMENTS.— 

7 ‘‘(i) IN GENERAL.—In a case of a bor8 rower with a debt amount described in sub9 paragraph (A)(i), the Secretary shall in10 crease such debt amount, or its inflation-ad11 justed equivalent, if the Secretary deter12 mines that an inflation adjustment to such 

13 debt amount would result in an increase of 

14 $100 or more to such debt amount. 

15 ‘‘(ii) INFLATION ADJUSTMENT.—In 

16 making the inflation adjustment under 

17 clause (i), the Secretary shall— 

18 ‘‘(I) use the annual average per19 cent change of the All Items Consumer 

20 Price Index for All Urban Consumers, 

21 before seasonal adjustment, as the 

22 measurement of inflation; and 

23 ‘‘(II) if the adjustment calculated 

24 under subclause (I) is equal to or 

25 greater than $100— 


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1 ‘‘(aa) add the adjustment to 

2 the debt amount, or its inflation3 adjusted equivalent; and 

4 ‘‘(bb) round up to the nearest 

5 $5. 

6 ‘‘(iii) PUBLICATION.—The Secretary 

7 shall publish a notice in the Federal Reg8 ister announcing any increase to the thresh9 old amount specified in subparagraph 

10 (A)(i)(I). 

11 ‘‘(C) TREATMENT OF ABSENCE OF CREDIT

12 HISTORY.—For purposes of this section, the Sec13 retary shall not consider the absence of a credit 

14 history as an adverse credit history and shall not 

15 deny a Federal ONE Parent loan on that basis. 

16 ‘‘(D) EXTENUATING CIRCUMSTANCES.—For 

17 purposes of this section, the Secretary may deter18 mine that extenuating circumstances exist based 

19 on documentation that may include— 

20 ‘‘(i) an updated credit report for the 

21 parent; or 

22 ‘‘(ii) a statement from the creditor that 

23 the parent has repaid or made satisfactory 

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1 sidered in determining that the parent has 

2 an adverse credit history 

3 ‘‘(b) LIMITATION BASED ON NEED.—Any loan under 

4 this section may be counted as part of the expected family 

5 contribution in the determination of need under this title, 

6 but no loan may be made to any parent under this section 

7 for any academic year in excess of the lesser of— 

8 ‘‘(1) the student’s estimated cost of attendance 

9 minus the student’s estimated financial assistance (as 

10 calculated under section 465(b)(1)(A)); or 

11 ‘‘(2) the established annual loan limits for such 

12 loan under section 465(b). 

13 ‘‘(c) PARENT LOAN DISBURSEMENT.—All loans made 

14 under this section shall be disbursed in accordance with the 

15 requirements of section 465(a) and shall be disbursed by— 

16 ‘‘(1) an electronic transfer of funds from the 

17 lender to the eligible institution; or 

18 ‘‘(2) a check copayable to the eligible institution 

19 and the parent borrower. 

20 ‘‘(d) PAYMENT OF PRINCIPAL AND INTEREST.— 

21 ‘‘(1) COMMENCEMENT OF REPAYMENT.—Repay22 ment of principal on loans made under this section 

23 shall commence not later than 60 days after the date 

24 such loan is disbursed by the Secretary, subject to de25 ferral— 


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1 ‘‘(A) during any period during which the 

2 parent borrower meets the conditions required 

3 for a deferral under section 469A; and 

4 ‘‘(B) upon the request of the parent bor5 rower, during the 6-month period beginning, if 

6 the parent borrower is also a student, the day 

7 after the date such parent borrower ceases to 

8 carry at least one-half such a workload. 

9 ‘‘(2) MAXIMUM REPAYMENT PERIOD.—The max10 imum repayment period for a loan made under this 

11 section shall be a 10-year period beginning on the 

12 commencement of such period described in paragraph 

13 (1). 

14 ‘‘(3) CAPITALIZATION OF INTEREST.—Interest on 

15 loans made under this section for which payments of 

16 principal are deferred pursuant to paragraph (1) 

17 shall, if agreed upon by the borrower and the Sec18 retary— 

19 ‘‘(A) be paid monthly or quarterly; or 

20 ‘‘(B) be added to the principal amount of 

21 the loan not more frequently than quarterly by 

22 the Secretary. 

23 ‘‘(4) APPLICABLE RATES OF INTEREST.—Interest 

24 on loans made pursuant to this section shall be at the 


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1 applicable rate of interest provided in section 

2 465(c)(3) for loans made under this section. 

3 ‘‘(5) AMORTIZATION.—Section 466(b)(2) shall 

4 apply to each loan made under this section. 

5 ‘‘(e) VERIFICATION OF IMMIGRATION STATUS AND SO6 CIAL SECURITY NUMBER.—A parent who wishes to borrow 

7 funds under this section shall be subject to verification of 

8 the parent’s— 

9 ‘‘(1) immigration status in the same manner as 

10 immigration status is verified for students under sec11 tion 484(g); and 

12 ‘‘(2) social security number in the same manner 

13 as social security numbers are verified for students 

14 under section 484(p). 

15 ‘‘(f) DESIGNATION.—For purposes of this Act, the Fed16 eral ONE Loans described in this section shall be known 

17 as ‘Federal ONE Parent Loans’. 

18 ‘‘SEC. 468. FEDERAL ONE CONSOLIDATION LOANS. 

19 ‘‘(a) TERMS AND CONDITIONS.—In making consolida20 tion loans under this section, the Secretary shall— 

21 ‘‘(1) not make such a loan to an eligible bor22 rower, unless the Secretary has determined, in accord23 ance with reasonable and prudent business practices, 

24 for each loan being consolidated, that the loan— 


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1 ‘‘(A) is a legal, valid, and binding obliga2 tion of the borrower; and 

3 ‘‘(B) was made and serviced in compliance 

4 with applicable laws and regulations; 

5 ‘‘(2) ensure that each consolidation loan made 

6 under this section will bear interest, and be subject to 

7 repayment, in accordance with subsection (c), except 

8 as otherwise provided under subsections (f) and (g) of 

9 section 465; 

10 ‘‘(3) ensure that each consolidation loan will be 

11 made, notwithstanding any other provision of this 

12 part limiting the annual or aggregate principal 

13 amount for all loans made to a borrower, in an 

14 amount which is equal to the sum of the unpaid prin15 cipal and accrued unpaid interest and late charges of 

16 all eligible student loans received by the eligible bor17 rower which are selected by the borrower for consoli18 dation; 

19 ‘‘(4) ensure that the proceeds of each consolida20 tion loan will be paid by the Secretary to the holder 

21 or holders of the loans so selected to discharge the li22 ability on such loans; 

23 ‘‘(5) disclose to a prospective borrower, in simple 

24 and understandable terms, at the time the Secretary 

25 provides an application for a consolidation loan— 


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1 ‘‘(A) with respect to a loan made, insured, 

2 or guaranteed under this part, part B, or part 

3 D, that if a borrower includes such a loan in the 

4 consolidation loan— 

5 ‘‘(i) that the consolidation would result 

6 in a loss of loan benefits; and 

7 ‘‘(ii) which specific loan benefits the 

8 borrower would lose, including the loss of 

9 eligibility for loan forgiveness (including 

10 loss of eligibility for interest rate forgive11 ness), cancellation, deferment, forbearance, 

12 interest-free periods, or loan repayment pro13 grams that would have been available for 

14 such a loan; and 

15 ‘‘(B) with respect to Federal Perkins Loans 

16 under this part (as this part was in effect on the 

17 day before the date of enactment of the PROS18 PER Act)— 

19 ‘‘(i) that if a borrower includes such a 

20 Federal Perkins Loan in the consolidation 

21 loan, the borrower will lose all interest-free 

22 periods that would have been available for 

23 the Federal Perkins Loan, such as— 

24 ‘‘(I) the periods during which no 

25 interest accrues on such loan while the 


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1 borrower is enrolled in an institution 

2 of higher education at least half-time; 

3 ‘‘(II) the grace period under sec4 tion 464(c)(1)(A) (as such section was 

5 in effect on the day before the date of 

6 enactment of the PROSPER Act); and 

7 ‘‘(III) the periods during which 

8 the borrower’s student loan repayments 

9 are deferred under section 464(c)(2) (as 

10 such section was in effect on the day 

11 before the date of enactment of the 

12 PROSPER Act); and 

13 ‘‘(ii) that if a borrower includes such a 

14 Federal Perkins Loan in the consolidation 

15 loan, the borrower will no longer be eligible 

16 for cancellation of part or all of the Federal 

17 Perkins Loan under section 465(a) (as such 

18 section was in effect on the day before the 

19 date of enactment of the PROSPER Act); 

20 and 

21 ‘‘(iii) the occupations listed in section 

22 465 that qualify for Federal Perkins Loan 

23 cancellation under section 465(a) (as such 

24 section was in effect on the day before the 

25 date of enactment of the PROSPER Act); 


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1 ‘‘(C) the repayment plans that are available 

2 to the borrower under section (c); 

3 ‘‘(D) the options of the borrower to prepay 

4 the consolidation loan, to pay such loan on a 

5 shorter schedule, and to change repayment plans; 

6 ‘‘(E) the consequences of default on the con7 solidation loan; and 

8 ‘‘(F) that by applying for a consolidation 

9 loan, the borrower is not obligated to agree to 

10 take the consolidation loan; and 

11 ‘‘(6) not make such a loan to an eligible bor12 rower, unless— 

13 ‘‘(A) the borrower has agreed to notify the 

14 Secretary promptly concerning any change of 

15 address; and 

16 ‘‘(B) the loan is evidenced by a note or 

17 other written agreement which— 

18 ‘‘(i) is made without security and 

19 without endorsement, except that if— 

20 ‘‘(I) the borrower is a minor and 

21 such note or other written agreement 

22 executed by him or her would not, 

23 under applicable law, create a binding 

24 obligation, endorsement may be re25 quired; or 


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1 ‘‘(II) the borrower desires to in2 clude in the consolidation loan, a Fed3 eral ONE Parent Loan, or a loan 

4 under section 428B, or a Federal Di5 rect PLUS loan, made on behalf of a 

6 dependent student, endorsement shall 

7 be required; 

8 ‘‘(ii) provides for the payment of inter9 est and the repayment of principal as de10 scribed in paragraph (2); 

11 ‘‘(iii) provides that during any period 

12 for which the borrower would be eligible for 

13 a deferral under section 469A, which period 

14 shall not be included in determining the re15 payment schedule pursuant to subsection 

16 (c)— 

17 ‘‘(I) periodic installments of prin18 cipal need not be paid, but interest 

19 shall accrue and be paid by the bor20 rower or be capitalized; and 

21 ‘‘(II) except as otherwise provided 

22 under subsections (f) and (g) of section 

23 465, the Secretary shall not pay inter24 est on any portion of the consolidation 

25 loan, without regard to whether the 


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1 portion repays Federal Stafford Loans 

2 for which the student borrower received 

3 an interest subsidy under section 428 

4 or Federal Direct Stafford Loans for 

5 which the borrower received an interest 

6 subsidy under section 455; 

7 ‘‘(iv) entitles the borrower to accelerate 

8 without penalty repayment of the whole or 

9 any part of the loan; and 

10 ‘‘(v) contains a notice of the system of 

11 disclosure concerning such loan to consumer 

12 reporting agencies under section 430A, and 

13 provides that the Secretary on request of the 

14 borrower will provide information on the 

15 repayment status of the note to such con16 sumer reporting agencies. 

17 ‘‘(b) NONDISCRIMINATION IN LOAN CONSOLIDATION.— 

18 The Secretary shall not discriminate against any borrower 

19 seeking a loan under this section— 

20 ‘‘(1) based on the number or type of eligible stu21 dent loans the borrower seeks to consolidate; 

22 ‘‘(2) based on the type or category of institution 

23 of higher education that the borrower attended; 

24 ‘‘(3) based on the interest rate to be charged to 

25 the borrower with respect to the consolidation loan; or 


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1 ‘‘(4) with respect to the types of repayment 

2 schedules offered to such borrower. 

3 ‘‘(c) PAYMENT OF PRINCIPAL AND INTEREST.— 

4 ‘‘(1) REPAYMENT SCHEDULES.— 

5 ‘‘(A) ESTABLISHMENT.— 

6 ‘‘(i) IN GENERAL.—Notwithstanding 

7 any other provision of this part, the Sec8 retary shall— 

9 ‘‘(I) establish repayment terms as 

10 will promote the objectives of this sec11 tion; and 

12 ‘‘(II) provide a borrower with the 

13 option of the standard-repayment plan 

14 or income-based repayment plan under 

15 section 466(d) in lieu of such repay16 ment terms. 

17 ‘‘(ii) SCHEDULE TERMS.—The repay18 ment terms established under clause (i)(I) 

19 shall require that if the sum of the consoli20 dation loan and the amount outstanding on 

21 other eligible student loans to the indi22 vidual— 

23 ‘‘(I) is less than $7,500, then such 

24 consolidation loan shall be repaid in 

25 not more than 10 years; 


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1 ‘‘(II) is equal to or greater than 

2 $7,500 but less than $10,000, then such 

3 consolidation loan shall be repaid in 

4 not more than 12 years; 

5 ‘‘(III) is equal to or greater than 

6 $10,000 but less than $20,000, then 

7 such consolidation loan shall be repaid 

8 in not more than 15 years; 

9 ‘‘(IV) is equal to or greater than 

10 $20,000 but less than $40,000, then 

11 such consolidation loan shall be repaid 

12 in not more than 20 years; 

13 ‘‘(V) is equal to or greater than 

14 $40,000 but less than $60,000, then 

15 such consolidation loan shall be repaid 

16 in not more than 25 years; or 

17 ‘‘(VI) is equal to or greater than 

18 $60,000, then such consolidation loan 

19 shall be repaid in not more than 30 

20 years. 

21 ‘‘(B) LIMITATION.—The amount out22 standing on other eligible student loans which 

23 may be counted for the purpose of subparagraph 

24 (A) may not exceed the amount of the consolida25 tion loan. 


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1 ‘‘(2) ADDITIONAL REPAYMENT REQUIREMENTS.— 

2 Notwithstanding paragraph (1)— 

3 ‘‘(A) except in the case of an income-based 

4 repayment schedule under section 466(d), a re5 payment schedule established with respect to a 

6 consolidation loan shall require that the min7 imum installment payment be an amount equal 

8 to not less than the accrued unpaid interest; and 

9 ‘‘(B) an income-based repayment schedule 

10 under section 466(d) shall not be available to a 

11 consolidation loan borrower who— 

12 ‘‘(i) used the proceeds of a Federal 

13 ONE Consolidation loan to discharge the li14 ability— 

15 ‘‘(I) on a loan under section 428B 

16 made on behalf of a dependent student; 

17 ‘‘(II) a Federal Direct PLUS loan 

18 made on behalf of a dependent student; 

19 ‘‘(III) a Federal ONE Parent 

20 loan; or 

21 ‘‘(IV) an excepted consolidation 

22 loan (defined in section 493C); or 

23 ‘‘(ii) used the proceeds of a subsequent 

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1 charge the liability on a Federal ONE Con2 solidation loan described in clause (i). 

3 ‘‘(3) COMMENCEMENT OF REPAYMENT.—Repay4 ment of a consolidation loan shall commence within 

5 60 days after all holders have, pursuant to subsection 

6 (a)(4), discharged the liability of the borrower on the 

7 loans selected for consolidation. 

8 ‘‘(4) INTEREST RATE.—A consolidation loan 

9 made under this section shall bear interest at an an10 nual rate described in section 465(c)(4). 

11 ‘‘(d) INSURANCE RULE.—Any insurance premium 

12 paid by the borrower under subpart I of part A of title 

13 VII of the Public Health Service Act with respect to a loan 

14 made under that subpart and consolidated under this sec15 tion shall be retained by the student loan insurance account 

16 established under section 710 of the Public Health Service 

17 Act. 

18 ‘‘(e) DEFINITIONS.—For the purpose of this section: 

19 ‘‘(1) ELIGIBLE BORROWER.— 

20 ‘‘(A) IN GENERAL.—The term ‘eligible bor21 rower’ means a borrower who— 

22 ‘‘(i) is not subject to a judgment se23 cured through litigation with respect to a 

24 loan under this title or to an order for wage 

25 garnishment under section 488A; and 


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1 ‘‘(ii) at the time of application for a 

2 consolidation loan— 

3 ‘‘(I) is in repayment status as de4 termined under section 466(a)(1); 

5 ‘‘(II) is in a grace period pre6 ceding repayment; or 

7 ‘‘(III) is a defaulted borrower who 

8 has made arrangements to repay the 

9 obligation on the defaulted loans satis10 factory to the holders of the defaulted 

11 loans. 

12 ‘‘(B) TERMINATION OF STATUS AS AN ELIGI13 BLE BORROWER.—An individual’s status as an 

14 eligible borrower under this section terminates 

15 upon receipt of a consolidation loan under this 

16 section, except that— 

17 ‘‘(i) an individual who receives eligible 

18 student loans after the date of receipt of the 

19 consolidation loan may receive a subsequent 

20 consolidation loan; 

21 ‘‘(ii) loans received prior to the date of 

22 the consolidation loan may be added during 

23 the 180-day period following the making of 

24 the consolidation loan; 


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1 ‘‘(iii) loans received following the mak2 ing of the consolidation loan may be added 

3 during the 180-day period following the 

4 making of the consolidation loan; 

5 ‘‘(iv) loans received prior to the date of 

6 the first consolidation loan may be added to 

7 a subsequent consolidation loan; and 

8 ‘‘(v) an individual may obtain a sub9 sequent consolidation loan for the purpose— 

10 ‘‘(I) of income-based repayment 

11 under section 466(d) only if the loan 

12 has been submitted for default aversion 

13 or if the loan is already in default; 

14 ‘‘(II) of using the no accrual of 

15 interest for active duty service members 

16 benefit offered under section 465(g); of 

17 ‘‘(III) of submitting an applica18 tion under section 469B(d) for a bor19 rower defense to repayment of a loan 

20 made, insured, or guaranteed under 

21 this title. 

22 ‘‘(2) ELIGIBLE STUDENT LOANS.—For the pur23 pose of paragraph (1), the term ‘eligible student loans’ 

24 means loans— 


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1 ‘‘(A) made, insured, or guaranteed under 

2 part B, and first disbursed before July 1, 2010, 

3 including loans on which the borrower has de4 faulted (but has made arrangements to repay the 

5 obligation on the defaulted loans satisfactory to 

6 the Secretary or guaranty agency, whichever in7 sured the loans); 

8 ‘‘(B) made under part D of this title, and 

9 first disbursed before July 1, 2019; 

10 ‘‘(C) made under this part before September 

11 30, 2017; 

12 ‘‘(D) made under this part on or after the 

13 date of enactment of the PROSPER Act; 

14 ‘‘(E) made under subpart II of part A of 

15 title VII of the Public Health Service Act; or 

16 ‘‘(F) made under part E of title VIII of the 

17 Public Health Service Act. 

18 ‘‘(f) DESIGNATION.—For purposes of this Act, the Fed19 eral ONE Loans described in this section shall be known 

20 as ‘Federal ONE Consolidation Loans’. 

21 ‘‘SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY. 

22 ‘‘(a) IN GENERAL.—A borrower who has 1 or more 

23 loans in 2 or more of the categories described in subsection 

24 (b), and who has not yet entered repayment on 1 or more 

25 of those loans in any of the categories, may consolidate all 


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1 of the loans of the borrower that are described in subsection 

2 (b) into a Federal ONE Consolidation Loan during the pe3 riod described in subsection (c). 

4 ‘‘(b) CATEGORIES OF LOANS THAT MAY BE CONSOLI5 DATED.—The categories of loans that may be consolidated 

6 under this section are— 

7 ‘‘(1) loans made under this part before October 

8 1, 2017 and on or after July 1, 2019; 

9 ‘‘(2) loans purchased by the Secretary pursuant 

10 to section 459A; 

11 ‘‘(3) loans made under part B that are held by 

12 an eligible lender, as such term is defined in section 

13 435(d); and 

14 ‘‘(4) loans made under part D. 

15 ‘‘(c) TIME PERIOD IN WHICH LOANS MAY BE CON16 SOLIDATED.—The Secretary may make a Federal ONE 

17 Consolidation Loan under this section to a borrower whose 

18 application for such Federal ONE Consolidation Loan is 

19 received on or after July 1, 2019, and before July 1, 2024. 

20 ‘‘(d) TERMS OF LOANS.—A Federal ONE Consolida21 tion Loan made under this subsection shall have the same 

22 terms and conditions as a Federal ONE Consolidation 

23 Loan made under section 468, except that in determining 

24 the applicable rate of interest on the Federal ONE Consoli25 dation Loan made under this section, section 465(c)(4) shall 


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1 be applied without rounding the weighted average of the 

2 interest rate on the loans consolidated to the nearest higher 

3 one-eighth of one percent as in such section. 

4 ‘‘SEC. 469A. DEFERMENT. 

5 ‘‘(a) EFFECT ON PRINCIPAL AND INTEREST.—A bor6 rower of a loan made under this part who meets the require7 ments described in subsection (b) shall be eligible for a 

8 deferment during which installments of principal need not 

9 be paid and, unless otherwise provided in this subsection, 

10 interest shall accrue and be capitalized or paid by the bor11 rower. 

12 ‘‘(b) ELIGIBILITY.—A borrower of a loan made under 

13 this part shall be eligible for a deferment— 

14 ‘‘(1) during any period during which the bor15 rower— 

16 ‘‘(A) is carrying at least one-half the nor17 mal full-time work load for the course of study 

18 that the borrower is pursuing, as determined by 

19 the eligible institution the borrower is attending; 

20 ‘‘(B) is pursuing a course of study pursuant 

21 to— 

22 ‘‘(i) an eligible graduate fellowship 

23 program in accordance with subsection (g); 

24 or 


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1 ‘‘(ii) an eligible rehabilitation training 

2 program for individuals with disabilities in 

3 accordance with subsection (i); 

4 ‘‘(C) is serving on active duty during a war 

5 or other military operation or national emer6 gency, and for the 180-day period following the 

7 demobilization date for such service; 

8 ‘‘(D) is performing qualifying National 

9 Guard duty during a war or other military op10 eration or national emergency, and for the 180- 

11 day period following the demobilization date for 

12 such service; 

13 ‘‘(E) is a member of the National Guard 

14 who is not eligible for a post-active duty 

15 deferment under section 493D and is engaged in 

16 active State duty for a period of more than 30 

17 consecutive days beginning— 

18 ‘‘(i) the day after 6 months after the 

19 date the student ceases to carry at least one20 half the normal full-time academic workload 

21 (as determined by the institution); or 

22 ‘‘(ii) the day after the borrower ceases 

23 enrollment on at least a half-time basis, for 

24 a loan in repayment; 


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1 ‘‘(F) is serving in a medical or dental in2 ternship or residency program, the successful 

3 completion of which is required to begin profes4 sional practice or service, or is serving in a med5 ical or dental internship or residency program 

6 leading to a degree or certificate awarded by an 

7 institution of higher education, a hospital, or a 

8 health care facility that offers postgraduate 

9 training; or 

10 ‘‘(G) is eligible for interest payments to be 

11 made on a loan made under this part for service 

12 in the Armed Forces under section 2174 of title 

13 10, United States Code, and pursuant to that 

14 eligibility, the interest is being paid on such loan 

15 under section 465(f); 

16 ‘‘(2) during a period sufficient to enable the bor17 rower to resume honoring the agreement to repay the 

18 outstanding balance of principal and interest on the 

19 loan after default, if— 

20 ‘‘(A) the borrower signs a new agreement to 

21 repay such outstanding balance; 

22 ‘‘(B) the deferment period is limited to 120 

23 days; and 

24 ‘‘(C) such deferment is not granted for con25 secutive periods; 


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1 ‘‘(3) during a period of administrative deferment 

2 described in subsection (j); or 

3 ‘‘(4) in the case of a borrower of a Federal ONE 

4 Parent Loan or an Excepted Federal ONE Consolida5 tion Loan, during a period described in subsection 

6 (k). 

7 ‘‘(c) LENGTH OF DEFERMENT.—A deferment granted 

8 by the Secretary— 

9 ‘‘(1) under subparagraph (F) or (G) of sub10 section (b)(1) shall be renewable at 12 month inter11 vals; 

12 ‘‘(2) under subparagraph (F) of subsection (b)(1) 

13 shall equal the length of time remaining in the bor14 rower’s medical or dental internship or residency pro15 gram; and 

16 ‘‘(3) under subparagraph (G) of subsection (b)(1) 

17 shall not exceed 3 years. 

18 ‘‘(d) REQUEST AND DOCUMENTATION.—The Secretary 

19 shall determine the eligibility of a borrower for a deferment 

20 under paragraphs (1), (2), or (4) of subsection (b), or in 

21 the case of a loan for which an endorser is required, an 

22 endorser’s eligibility for a deferment under paragraph (2) 

23 or (4) or eligibility to request a deferment under paragraph 

24 (1), based on— 


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1 ‘‘(1) the receipt of a request for a deferment from 

2 the borrower or the endorser, and documentation of 

3 the borrower’s or endorser’s eligibility for the 

4 deferment or eligibility to request the deferment; 

5 ‘‘(2) receipt of a completed loan application that 

6 documents the borrower’s eligibility for a deferment; 

7 ‘‘(3) receipt of a student status information doc8 umenting that the borrower is enrolled on at least a 

9 half-time basis; or 

10 ‘‘(4) the Secretary’s confirmation of the bor11 rower’s half-time enrollment status, if the confirma12 tion is requested by the institution of higher edu13 cation. 

14 ‘‘(e) NOTIFICATION.—The Secretary shall— 

15 ‘‘(1) notify a borrower of a loan made under this 

16 part— 

17 ‘‘(A) the granting of a deferment under this 

18 subsection on such loan; and 

19 ‘‘(B) the option of the borrower to continue 

20 making payments on the outstanding balance of 

21 principal and interest on such loan in accord22 ance with subsection (f); 

23 ‘‘(2) at the time the Secretary grants a deferment 

24 to a borrower of a loan made under this part, and 

25 not less frequently than once every 180 days during 


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1 the period of such deferment, provide information to 

2 the borrower to assist the borrower in under3 standing— 

4 ‘‘(A) the effect of granting a deferment on 

5 the total amount to be paid under the income6 based repayment plan under 466(d); 

7 ‘‘(B) the fact that interest will accrue on the 

8 loan for the period of deferment, other than for 

9 a deferment granted under subsection (b)(1)(G); 

10 ‘‘(C) the amount of unpaid principal and 

11 the amount of interest that has accrued since the 

12 last statement of such amounts provided to the 

13 borrower; 

14 ‘‘(D) the amount of interest that will be 

15 capitalized, and the date on which capitalization 

16 will occur; 

17 ‘‘(E) the effect of the capitalization of inter18 est on the borrower’s loan principal and on the 

19 total amount of interest to be paid on the loan; 

20 ‘‘(F) the option of the borrower to pay the 

21 interest that has accrued before the interest is 

22 capitalized; and 

23 ‘‘(G) the borrower’s option to discontinue 

24 the deferment at any time. 


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1 ‘‘(f) FORM OF DEFERMENT.—The form of a deferment 

2 granted under this subsection on a loan made under this 

3 part shall be temporary cessation of all payments on such 

4 loan, except that— 

5 ‘‘(1) in the case of a deferment granted under 

6 subsection (b)(1)(G), payments of interest on the loan 

7 will be made by the Secretary under section 465(f) 

8 during such period of deferment; and 

9 ‘‘(2) a borrower may make payments on the out10 standing balance of principal and interest on such 

11 loan during any period of deferment granted under 

12 this subsection. 

13 ‘‘(g) GRADUATE FELLOWSHIP DEFERMENT.— 

14 ‘‘(1) IN GENERAL.—A borrower of a loan under 

15 this part is eligible for a deferment under subsection 

16 (b)(1)(B)(i) during any period for which an author17 ized official of the borrower’s graduate fellowship pro18 gram certifies that the borrower meets the require19 ments of paragraph (2) and is pursuing a course of 

20 study pursuant to an eligible graduate fellowship pro21 gram. 

22 ‘‘(2) BORROWER REQUIREMENTS.—A borrower 

23 meets the requirements of this subparagraph if the 

24 borrower— 


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1 ‘‘(A) holds at least a baccalaureate degree 

2 conferred by an institution of higher education; 

3 ‘‘(B) has been accepted or recommended by 

4 an institution of higher education for acceptance 

5 on a full-time basis into an eligible graduate fel6 lowship program; and 

7 ‘‘(C) is not serving in a medical internship 

8 or residency program, except for a residency pro9 gram in dentistry. 

10 ‘‘(h) TREATMENT OF STUDY OUTSIDE THE UNITED

11 STATES.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall treat, in 

13 the same manner as required under section 428(b)(4), 

14 any course of study at a foreign university that is ac15 cepted for the completion of a recognized inter16 national fellowship program by the administrator of 

17 such a program as an eligible graduate fellowship 

18 program. 

19 ‘‘(2) REQUESTS FOR DEFERMENT.—Requests for 

20 deferment of repayment of loans under this subsection 

21 by students engaged in graduate or postgraduate fel22 lowship-supported study (such as pursuant to a Ful23 bright grant) outside the United States shall be ap24 proved until completion of the period of the fellowVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00370 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ship, in the same manner as required under section 

2 428(b)(4). 

3 ‘‘(i) REHABILITATION TRAINING PROGRAM

4 DEFERMENT.—A borrower of a loan under this part is eli5 gible for a deferment under subsection (b)(1)(B)(ii) during 

6 any period for which an authorized official of the borrower’s 

7 rehabilitation training program certifies that the borrower 

8 is pursuing an eligible rehabilitation training program for 

9 individuals with disabilities. 

10 ‘‘(j) ADMINISTRATIVE DEFERMENTS.—The Secretary 

11 may grant a deferment to a borrower or, in the case of a 

12 loan for which an endorser is required, an endorser, without 

13 requiring a request and documentation from the borrower 

14 or the endorser under subsection (d) for— 

15 ‘‘(1) a period during which the borrower was de16 linquent at the time a deferment is granted, including 

17 a period for which scheduled payments of principal 

18 and interest were overdue at the time such deferment 

19 is granted; 

20 ‘‘(2) a period during which the borrower or the 

21 endorser was granted a deferment under this sub22 section but for which the Secretary determines the 

23 borrower or the endorser should not have qualified; 

24 ‘‘(3) a period necessary for the Secretary to de25 termine the borrower’s eligibility for the cancellation 


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1 of the obligation of the borrower to repay the loan 

2 under section 437; 

3 ‘‘(4) a period during which the Secretary has 

4 authorized deferment due to a national military mo5 bilization or other local or national emergency; or 

6 ‘‘(5) a period not to exceed 60 days, during 

7 which interest shall accrue but not be capitalized, if 

8 the Secretary reasonably determines that a suspension 

9 of collection activity is warranted to enable the Sec10 retary to process supporting documentation relating 

11 to a borrower’s request— 

12 ‘‘(A) for a deferment under this subsection; 

13 ‘‘(B) for a change in repayment plan under 

14 section 466(c); or 

15 ‘‘(C) to consolidate loans under section 468. 

16 ‘‘(k) DEFERMENTS FOR PARENT OR EXCEPTED CON17 SOLIDATION LOANS.— 

18 ‘‘(1) IN GENERAL.—A qualified borrower shall be 

19 eligible for deferments under paragraphs (3) through 

20 (5). 

21 ‘‘(2) QUALIFIED BORROWER DEFINED.—In this 

22 subsection, the term ‘qualified borrower’ means— 

23 ‘‘(A) a borrower of a Federal ONE Parent 

24 Loan or an Excepted Federal ONE Consolida25 tion Loan; or 


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1 ‘‘(B) in the case of such a loan for which an 

2 endorser is required, the endorser of such loan. 

3 ‘‘(3) ECONOMIC HARDSHIP DEFERMENT.— 

4 ‘‘(A) IN GENERAL.—A qualified borrower 

5 shall be eligible for a deferment during periods, 

6 not to exceed 3 years in total, during which the 

7 qualified borrower experiences an economic hard8 ship described in subparagraph (B). 

9 ‘‘(B) ECONOMIC HARDSHIP.—An economic 

10 hardship described in this clause is a period dur11 ing which the qualified borrower— 

12 ‘‘(i) is receiving payment under a 

13 means-tested benefit program; 

14 ‘‘(ii) is employed full-time and the 

15 monthly gross income of the qualified bor16 rower does not exceed the greater of— 

17 ‘‘(I) the minimum wage rate de18 scribed in section 6 of the Fair Labor 

19 Standards Act of 1938 (29 U.S.C. 

20 206); or 

21 ‘‘(II) an amount equal to 150 per22 cent of the poverty line; or 

23 ‘‘(iii) demonstrates that the sum of the 

24 qualified borrower’s monthly payments on 

25 the qualified borrower’s Federal ONE ParVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00373 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ent Loan or Excepted Federal ONE Consoli2 dation Loan is not less than 20 percent of 

3 the qualified borrower’s monthly gross in4 come. 

5 ‘‘(C) ELIGIBILITY.—To be eligible to receive 

6 a deferment under this subparagraph, a qualified 

7 borrower shall submit to the Secretary— 

8 ‘‘(i) for the first period of deferment 

9 under this subparagraph, evidence showing 

10 the monthly gross income of the qualified 

11 borrower; and 

12 ‘‘(ii) for a subsequent period of 

13 deferment that begins less than one year 

14 after the end of a period of deferment grant15 ed under this subparagraph— 

16 ‘‘(I) evidence showing the monthly 

17 gross income of the qualified borrower; 

18 or 

19 ‘‘(II) the qualified borrower’s most 

20 recently filed Federal income tax re21 turn, if such a return was filed in ei22 ther of the two tax years preceding the 

23 year in which the qualified borrower 

24 requests the subsequent period of 

25 deferment. 


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1 ‘‘(4) UNEMPLOYMENT DEFERMENT.— 

2 ‘‘(A) IN GENERAL.—A qualified borrower 

3 shall be eligible for a deferment for periods dur4 ing which the qualified borrower is seeking, and 

5 is unable to find, full-time employment. 

6 ‘‘(B) ELIGIBILITY.— 

7 ‘‘(i) IN GENERAL.—To be eligible to re8 ceive an deferment under this subpara9 graph, a qualified borrower shall submit to 

10 the Secretary— 

11 ‘‘(I) evidence of the qualified bor12 rower’s eligibility for unemployment 

13 benefits; or 

14 ‘‘(II) written confirmation, or an 

15 equivalent as approved by the Sec16 retary, that— 

17 ‘‘(aa) the qualified borrower 

18 has registered with a public or 

19 private employment agency, if one 

20 is available to the borrower within 

21 50 miles of the qualified bor22 rower’s address; and 

23 ‘‘(bb) for requests submitted 

24 after the initial request, the quali25 fied borrower has made at least 


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1 six diligent attempts during the 

2 preceding six-month period to se3 cure full-time employment. 

4 ‘‘(ii) ACCEPTANCE OF EMPLOYMENT.— 

5 A qualified borrower shall not be eligible for 

6 a deferment under this subparagraph if the 

7 qualified borrower refuses to seek or accept 

8 employment in types of positions or at sal9 ary levels or responsibility levels for which 

10 the qualified borrower feels overqualified 

11 based on the qualified borrower’s education 

12 or previous experience. 

13 ‘‘(C) TERMS OF DEFERMENT.—The fol14 lowing terms shall apply to a deferment under 

15 this subparagraph: 

16 ‘‘(i) INITIAL PERIOD.—The first 

17 deferment granted to a qualified borrower 

18 under this subparagraph may be for a pe19 riod of unemployment beginning not more 

20 than 6 months before the date on which the 

21 Secretary receives the qualified borrower’s 

22 request for deferment and may be granted 

23 for a period of up to 6 months after that 

24 date. 


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1 ‘‘(ii) RENEWALS.—Deferments under 

2 this subparagraph shall be renewable at 6- 

3 month intervals beginning after the expira4 tion of the first period of deferment under 

5 clause (i). To be eligible to renew a 

6 deferment under this subparagraph, a 

7 qualified borrower shall submit to the Sec8 retary the information described in sub9 paragraph (B)(i). 

10 ‘‘(iii) AGGREGATE LIMIT.—The period 

11 of all deferments granted to a borrower 

12 under this subparagraph may not exceed 3 

13 years in aggregate. 

14 ‘‘(5) HEALTH DEFERMENT.— 

15 ‘‘(A) IN GENERAL.—A qualified borrower 

16 shall be eligible for a deferment during periods 

17 in which the qualified borrower is unable to 

18 make scheduled loan payments due to high med19 ical expenses, as determined by the Secretary. 

20 ‘‘(B) ELIGIBILITY.—To be eligible to receive 

21 a deferment under this subparagraph, a qualified 

22 borrower shall— 

23 ‘‘(i) submit to the Secretary docu24 mentation demonstrating that making 

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1 treme economic hardship to the borrower 

2 due to high medical expenses, as determined 

3 by the Secretary; and 

4 ‘‘(ii) resubmit such documentation to 

5 the Secretary not less frequently than once 

6 every 3 months. 

7 ‘‘(l) PROHIBITIONS.— 

8 ‘‘(1) PROHIBITION ON FEES.—No administrative 

9 fee or other fee may be charged to the borrower in 

10 connection with the granting of a deferment under 

11 this subsection. 

12 ‘‘(2) PROHIBITION ON ADVERSE CREDIT REPORT13 ING.—No adverse information relating to a borrower 

14 may be reported to a consumer reporting agency sole15 ly because of the granting of a deferment under this 

16 subsection. 

17 ‘‘(3) LIMITATION ON AUTHORITY.—The Secretary 

18 shall not, through regulation or otherwise, authorize 

19 additional deferment options or periods of deferment 

20 other than the deferment options and periods of 

21 deferment authorized under this subsection. 

22 ‘‘(m) TREATMENT OF ENDORSERS.—With respect to 

23 any Federal ONE Parent Loan or Federal ONE Consolida24 tion Loan for which an endorser is required— 


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1 ‘‘(1) paragraphs (2) through (4) of subsection (b) 

2 shall be applied— 

3 ‘‘(A) by substituting ‘An endorser’ for ‘A 

4 borrower’; 

5 ‘‘(B) by substituting ‘the endorser’ for ‘the 

6 borrower’; and 

7 ‘‘(C) by substituting ‘an endorser’ for ‘a 

8 borrower’; and 

9 ‘‘(2) in the case in which the borrower of such 

10 a loan is eligible for a deferment described in sub11 paragraph (C), (D), (E), (F), or (G) of subsection 

12 (b)(1), but is not making payments on the loan, the 

13 endorser of the loan may request a deferment under 

14 such subparagraph for the loan. 

15 ‘‘(n) DEFINITIONS.—In this section: 

16 ‘‘(1) ELIGIBLE GRADUATE FELLOWSHIP PRO17 GRAM.—The term ‘eligible graduate fellowship pro18 gram’, when used with respect to a course of study 

19 pursued by the borrower of a loan under this part, 

20 means a fellowship program that— 

21 ‘‘(A) provides sufficient financial support to 

22 graduate fellows to allow for full-time study for 

23 at least six months; 


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1 ‘‘(B) requires a written statement from each 

2 applicant explaining the applicant’s objectives 

3 before the award of that financial support; 

4 ‘‘(C) requires a graduate fellow to submit 

5 periodic reports, projects, or evidence of the fel6 low’s progress; and 

7 ‘‘(D) in the case of a course of study at an 

8 institution of higher education outside the 

9 United States described in section 102, accepts 

10 the course of study for completion of the fellow11 ship program. 

12 ‘‘(2) ELIGIBLE REHABILITATION TRAINING PRO13 GRAM FOR INDIVIDUALS WITH DISABILITIES.—The 

14 term ‘eligible rehabilitation training program for in15 dividuals with disabilities’, when used with respect a 

16 course of study pursued by the borrower of a loan 

17 under this part, means a program that— 

18 ‘‘(A) is necessary to assist an individual 

19 with a disability in preparing for, securing, re20 taining, or regaining employment; 

21 ‘‘(B) is licensed, approved, certified, or oth22 erwise recognized as providing rehabilitation 

23 training to disabled individuals by— 

24 ‘‘(i) a State agency with responsibility 

25 for vocational rehabilitation programs, drug 


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1 abuse treatment programs, mental health 

2 services programs, or alcohol abuse treat3 ment programs; or 

4 ‘‘(ii) the Secretary of the Department 

5 of Veterans Affairs; and 

6 ‘‘(C) provides or will provide the borrower 

7 with rehabilitation services under a written plan 

8 that— 

9 ‘‘(i) is individualized to meet the bor10 rower’s needs; 

11 ‘‘(ii) specifies the date on which the 

12 services to the borrower are expected to end; 

13 and 

14 ‘‘(iii) requires a commitment of time 

15 and effort from the borrower that prevents 

16 the borrower from being employed at least 

17 30 hours per week, either because of the 

18 number of hours that must be devoted to re19 habilitation or because of the nature of the 

20 rehabilitation. 

21 ‘‘(3) EXCEPTED FEDERAL ONE CONSOLIDATION

22 LOAN.—The ‘Excepted Federal ONE Consolidation 

23 Loan’ have the meaning given the term in section 

24 466(d)(5). 


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1 ‘‘(4) FAMILY SIZE.—The term ‘family size’ 

2 means the number that is determined by counting— 

3 ‘‘(A) the borrower; 

4 ‘‘(B) the borrower’s spouse; 

5 ‘‘(C) the borrower’s children, including un6 born children who are expected to be born during 

7 the period covered by the deferment, if the chil8 dren receive more than half their support from 

9 the borrower; and 

10 ‘‘(D) another individual if, at the time the 

11 borrower requests a deferment under this section, 

12 the individual— 

13 ‘‘(i) lives with the borrower; 

14 ‘‘(ii) receives more than half of the in15 dividual’s support (which may include 

16 money, gifts, loans, housing, food, clothes, 

17 car, medical and dental care, and payment 

18 of college costs) from the borrower; and 

19 ‘‘(iii) is expected to receive such sup20 port from the borrower during the relevant 

21 period of deferment. 

22 ‘‘(5) FULL-TIME.—The term ‘full-time’, when 

23 used with respect to employment, means employment 

24 for not less than 30 hours per week that is expected 

25 to continue for not less than three months. 


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1 ‘‘(6) MEANS-TESTED BENEFIT PROGRAM.—The 

2 term ‘means-tested benefit program’ means— 

3 ‘‘(A) a State public assistance program 

4 under which eligibility for the program’s bene5 fits, or the amount of such benefits, are deter6 mined on the basis of income or resources of the 

7 individual or family seeking the benefit; or 

8 ‘‘(B) a mandatory spending program of the 

9 Federal Government, other than a program 

10 under this title, under which eligibility for the 

11 program’s benefits, or the amount of such bene12 fits, are determined on the basis of income or re13 sources of the individual or family seeking the 

14 benefit, and may include such programs as 

15 ‘‘(i) the supplemental security income 

16 program under title XVI of the Social Secu17 rity Act (42 U.S.C. 1381 et seq.); 

18 ‘‘(ii) the supplemental nutrition assist19 ance program under the Food and Nutri20 tion Act of 2008 (7 U.S.C. 2011 et seq.); 

21 ‘‘(iii) the free and reduced price school 

22 lunch program established under the Rich23 ard B. Russell National School Lunch Act 

24 (42 U.S.C. 1751 et seq.); 


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1 ‘‘(iv) the program of block grants for 

2 States for temporary assistance for needy 

3 families established under part A of title IV 

4 of the Social Security Act (42 U.S.C. 601 et 

5 seq.); 

6 ‘‘(v) the special supplemental nutrition 

7 program for women, infants, and children 

8 established by section 17 of the Child Nutri9 tion Act of 1966 (42 U.S.C. 1786); and 

10 ‘‘(vi) other programs identified by the 

11 Secretary. 

12 ‘‘(7) MONTHLY GROSS INCOME.—The term 

13 ‘monthly gross income’, when used with respect to a 

14 borrower, means— 

15 ‘‘(A) the gross amount of income received by 

16 the borrower from employment and other sources 

17 for the most recent month; or 

18 ‘‘(B) one-twelfth of the borrower’s adjusted 

19 gross income, as recorded on the borrower’s most 

20 recently filed Federal income tax return. 

21 ‘‘SEC. 469B. ADDITIONAL TERMS. 

22 ‘‘(a) APPLICABLE PART B PROVISIONS.— 

23 ‘‘(1) DISCLOSURES.—Except as otherwise pro24 vided in this part, section 455(p) shall apply with re25 spect to loans under this part in the same manner 


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1 that such section applies with respect to loans under 

2 part D. 

3 ‘‘(2) OTHER PROVISIONS.—Except as otherwise 

4 provided in this part, the following provisions shall 

5 apply with respect to loans made under this part in 

6 the same manner that such provisions apply with re7 spect to loans made under part D: 

8 ‘‘(A) Section 427(a)(2). 

9 ‘‘(B) Section 428(d). 

10 ‘‘(C) Section 428F 

11 ‘‘(D) Section 430A. 

12 ‘‘(E) Paragraphs (1), (2), (4), and (6) of 

13 section 432(a). 

14 ‘‘(F) Section 432(i). 

15 ‘‘(G) Section 432(l). 

16 ‘‘(H) Section 432(m), except that an insti17 tution of higher education shall have a separate 

18 master promissory note under paragraph (1)(D) 

19 of such section for loans made under this part. 

20 ‘‘(I) Subsections (a), (c), and (d) of section 

21 437. 

22 ‘‘(3) APPLICATION OF PROVISIONS.—Any provi23 sion listed under paragraph (1) or (2) that applies 

24 to— 


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1 ‘‘(A) Federal Direct PLUS Loans made on 

2 behalf of dependent students shall apply to Fed3 eral ONE Parent Loans; 

4 ‘‘(B) Federal Direct PLUS Loans made to 

5 students shall apply to Federal ONE Loans for 

6 graduate or professional students; 

7 ‘‘(C) Federal Direct Unsubsidized Stafford 

8 loans shall apply to Federal ONE Loans (other 

9 than Federal ONE Consolidation Loans) for any 

10 student borrower; 

11 ‘‘(D) Federal Direct Consolidation Loans 

12 shall apply to Federal ONE Consolidation 

13 Loans; and 

14 ‘‘(E) forbearance shall apply to deferment 

15 under section 469A. 

16 ‘‘(b) ELIGIBLE STUDENT.—A loan under this part 

17 may only be made to a student who— 

18 ‘‘(1) is an eligible student under section 484; 

19 ‘‘(2) has agreed to notify promptly the Secretary 

20 and the applicable contractors with which the Sec21 retary has a contract under section 493E con22 cerning— 

23 ‘‘(A) any change of permanent address, tele24 phone number, or email address; 


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1 ‘‘(B) when the student ceases to be enrolled 

2 on at least a half-time basis; and 

3 ‘‘(C) any other change in status, when such 

4 change in status affects the student’s eligibility 

5 for the loan; and 

6 ‘‘(3) is carrying at least one-half the normal full7 time academic workload for the course of study the 

8 student is pursuing (as determined by the institu9 tion). 

10 ‘‘(c) LOAN APPLICATION AND PROMISSORY NOTE.— 

11 The common financial reporting form required in section 

12 483(a)(1) shall constitute the application for loans made 

13 under this part. The Secretary shall develop, print, and dis14 tribute to participating institutions a standard promissory 

15 note and loan disclosure form. 

16 ‘‘(d) BORROWER DEFENSES.—A borrower of a loan 

17 under this part may assert a defense to repayment to such 

18 loan under the provisions of section 455(h) that apply to 

19 a borrower of a loan made under part D asserting, on or 

20 after the date of enactment of the PROSPER Act, a defense 

21 to repayment to such loan made under part D. 

22 ‘‘(e) IDENTITY FRAUD PROTECTION.—The Secretary 

23 shall ensure that monthly Federal ONE Loan statements 

24 and other publications of the Department do not contain 


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1 more than four digits of the Social Security number of any 

2 individual. 

3 ‘‘(f) AUTHORITY TO SELL LOANS.—The Secretary, in 

4 consultation with the Secretary of the Treasury, is author5 ized to sell loans made under this part on such terms deter6 mined to be in the best interest of the United States, except 

7 that any such sale shall not result in any cost to the Federal 

8 Government.’’. 

9 PART F—NEED ANALYSIS 

10 SEC. 471. COST OF ATTENDANCE. 

11 Section 472 (20 U.S.C. 1087ll) is amended— 

12 (1) by striking paragraph (10); and 

13 (2) by redesignating paragraphs (11), (12), and 

14 (13) as paragraphs (10), (11), and (12), respectively. 

15 SEC. 472. SIMPLIFIED NEEDS TEST. 

16 Section 479(b)(1) (20 U.S.C. 1087ss) is amended by 

17 striking ‘‘$50,000’’ both places it appears and inserting 

18 ‘‘$100,000’’. 

19 SEC. 473. DISCRETION OF STUDENT FINANCIAL AID ADMIN20 ISTRATORS. 

21 Section 479A (20 U.S.C. 1087tt) is amended— 

22 (1) in subsection (a), by striking ‘‘financial as23 sistance under section 428H or a Federal Direct Un24 subsidized Stafford Loan’’ and inserting ‘‘a Federal 


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1 Direct Unsubsidized Stafford Loan or a Federal ONE 

2 Loan’’; 

3 (2) in subsection (c), by striking ‘‘part B or D’’ 

4 and inserting ‘‘part D or E’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(d) ADJUSTMENT BASED ON DELIVERY OF INSTRUC7 TION.—A student’s eligibility to receive grants, loans, or 

8 work assistance under this title shall be reduced if a finan9 cial aid officer determines, in accordance with the discre10 tionary authority provided under this section, that the 

11 model or method used to deliver instruction to the student 

12 results in a substantially reduced cost of attendance to the 

13 student.’’. 

14 SEC. 474. DEFINITIONS OF TOTAL INCOME AND ASSETS. 

15 Section 480 (20 U.S.C. 1087vv) is amended— 

16 (1) in subsection (a)(1), by striking subpara17 graph (B) and inserting the following: 

18 ‘‘(B) Notwithstanding section 478(a), the Secretary 

19 shall provide for the use of data from the second preceding 

20 tax year to carry out the simplification of applications (in21 cluding simplification for a subset of applications) used for 

22 the estimation and determination of financial aid eligi23 bility. Such simplification shall include the sharing of data 

24 between the Internal Revenue Service and the Department, 

25 pursuant to the consent of the taxpayer.’’; and 


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1 (2) in subsection (f)— 

2 (A) in paragraph (2)— 

3 (i) in subparagraph (B), by striking 

4 ‘‘or’’ at the end; 

5 (ii) in subparagraph (C), by striking 

6 the period at the end and inserting ‘‘; or’’; 

7 and 

8 (iii) by adding at the end the fol9 lowing: 

10 ‘‘(D) a qualified tuition program (as de11 fined in section 529(b)(1)(A) of the Internal Rev12 enue Code of 1986).’’; and 

13 (B) in paragraph (5)(A)(i), by striking 

14 ‘‘qualified tuition program (as defined in section 

15 529(b)(1)(A) of the Internal Revenue Code of 

16 1986) or other’’. 

17 PART G—GENERAL PROVISIONS RELATING TO 

18 STUDENT ASSISTANCE 

19 SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE 

20 PROGRAM. 

21 Section 481 (20 U.S.C. 1088) is amended— 

22 (1) in subsection (a)— 

23 (A) in paragraph (2)(A)— 


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1 (i) by striking ‘‘For the’’ and inserting 

2 the following: ‘‘Except as provided in para3 graph (3), for the’’; and 

4 (ii) in clause (i), by striking ‘‘require 

5 a minimum of 30 weeks’’ and inserting the 

6 following: ‘‘require— 

7 ‘‘(I) a minimum of 30 weeks’’; 

8 (iii) in clause (ii), by striking ‘‘re9 quire’’; 

10 (iv) by redesignating clause (ii) as sub11 clause (II) (and by adjusting the margin 

12 accordingly); and 

13 (v) by redesignating clause (iii) as 

14 clause (ii); and 

15 (B) by adding at the end the following: 

16 ‘‘(3)(A) For the purpose of a competency-based 

17 education program the term ‘academic year’ shall be 

18 the published measured period established by the in19 stitution of higher education that is necessary for a 

20 student with a normal full-time workload for the 

21 course of study the student is pursuing (as measured 

22 using the value of competencies or sets of competencies 

23 required by such institution and approved by such in24 stitution’s accrediting agency or association) to 

25 earn— 


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1 ‘‘(i) one-quarter of a bachelor’s degree; 

2 ‘‘(ii) one-half of an associate’s degree; or 

3 ‘‘(iii) with respect to a non-degree or graduate 

4 program, the equivalent of a period described in 

5 clause (i) or (ii). 

6 ‘‘(B)(i) A competency-based education pro7 gram that is not a term-based program may be 

8 treated as a term-based program for purposes of 

9 establishing payment periods for disbursement of 

10 loans and grants under this title if— 

11 ‘‘(I) the institution of higher education 

12 that offers such program charges a flat sub13 scription fee for access to instruction during 

14 a period determined by the institution; and 

15 ‘‘(II) the institution is able to deter16 mine the competencies a student is expected 

17 to demonstrate for such subscription period. 

18 ‘‘(ii) Clause (i) shall apply even in a case 

19 in which instruction or other work with respect 

20 to a competency that is expected to be attrib21 utable to a subscription period begins prior to 

22 such subscription period. 

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1 based program under clause (i), the institution 

2 shall review the academic progress of each stu3 dent enrolled in such program in accordance 

4 with section 484(c), except that such review shall 

5 occur at the end of each payment period.’’; 

6 (2) by amending subsection (b) to read as fol7 lows: 

8 ‘‘(b) ELIGIBLE PROGRAM.—(1) For purposes of this 

9 title, the term ‘eligible program’ means— 

10 ‘‘(A) a program of at least 300 clock hours of in11 struction, 8 semester hours, or 12 quarter hours, of12 fered during a minimum of 10 weeks; or 

13 ‘‘(B) a competency-based program that— 

14 ‘‘(i) has been evaluated and approved by an 

15 accrediting agency or association that— 

16 ‘‘(I) is recognized by the Secretary 

17 under subpart 2 of part H; and 

18 ‘‘(II) has evaluation of competency19 based education programs within the scope 

20 of its recognition in accordance with section 

21 496(a)(4)(C); or 

22 ‘‘(ii) as of the day before the date of enact23 ment of the PROSPER Act, met the require24 ments of a direct assessment program under secVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00393 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 tion 481(b)(4) (as such section was in effect on 

2 the day before such date of enactment). 

3 ‘‘(2) An eligible program described in paragraph (1) 

4 may be offered in whole or in part through telecommuni5 cations. 

6 ‘‘(3) For purposes of this title, the term ‘eligible pro7 gram’ does not include a program that loses its eligibility 

8 under section 481B(a). 

9 ‘‘(4)(A) If an eligible institution enters into a written 

10 arrangement with an institution or organization that is not 

11 an eligible institution under which such ineligible institu12 tion or organization provides the educational program (in 

13 whole or in part) of students enrolled in the eligible institu14 tion, the educational program provided by such ineligible 

15 institution shall be considered to be an eligible program 

16 if— 

17 ‘‘(i) the ineligible institution or organiza18 tion has not— 

19 ‘‘(I) had its eligibility to participate in 

20 the programs under this title terminated by 

21 the Secretary; 

22 ‘‘(II) voluntarily withdrawn from par23 ticipation in the programs under this title 

24 under a proceeding initiated by the Sec25 retary, accrediting agency or association, 


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1 guarantor, or the licensing agency for the 

2 State in which the institution is located, in3 cluding a termination, show-cause, or sus4 pension; 

5 ‘‘(III) had its certification under sub6 part 3 of part H to participate in the pro7 grams under this title revoked by the Sec8 retary; 

9 ‘‘(IV) had its application for recertifi10 cation under subpart 3 of part H to par11 ticipate in the programs under this title de12 nied by the Secretary; or 

13 ‘‘(V) had its application for certifi14 cation under subpart 3 of part H to par15 ticipate in the programs under this title de16 nied by the Secretary; 

17 ‘‘(ii) the educational program offered by the 

18 institution that grants the degree or certificate 

19 otherwise satisfies the requirements of paragraph 

20 (1); and 

21 ‘‘(iii)(I) the ineligible institution or organi22 zation provides 25 percent or less of the edu23 cational program; or 


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1 ‘‘(II)(aa) the ineligible institution or orga2 nization provides more than 25 percent of the 

3 educational program; and 

4 ‘‘(bb) the eligible institution’s accrediting 

5 agency or association has determined that the el6 igible institution’s arrangement meets the agen7 cy’s standards for the contracting out of edu8 cational services in accordance with section 

9 496(c)(5)(B)(iv). 

10 ‘‘(B) For purposes of subparagraph (A), the term ‘eli11 gible institution’ means an institution described in section 

12 487(a).’’; and 

13 (3) in subsection (c)(2), by striking ‘‘part B of’’. 

14 SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES. 

15 Part G of title IV (20 U.S.C. 1088 et seq.) is amended, 

16 as amended by section 481, is further amended by inserting 

17 after section 481A (20 U.S.C. 1088a) the following: 

18 ‘‘SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES. 

19 ‘‘(a) INELIGIBILITY OF AN EDUCATIONAL PROGRAM

20 BASED ON LOW REPAYMENT RATES.— 

21 ‘‘(1) IN GENERAL.—With respect to fiscal year 

22 2016 and each succeeding fiscal year, an educational 

23 program at an institution of higher education whose 

24 loan repayment rate is less than 45 percent for each 

25 of the 3 most recent fiscal years for which data are 


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1 available shall not be considered an eligible program 

2 for the fiscal year in which the determination is made 

3 and for the 2 succeeding fiscal years, unless, not later 

4 than 30 days after receiving notification from the 

5 Secretary of the loss of eligibility under this para6 graph, the institution appeals the loss of such pro7 gram’s eligibility to the Secretary. 

8 ‘‘(2) APPEAL.—The Secretary shall issue a deci9 sion on any such appeal within 45 days after its sub10 mission. Such decision may permit a program to be 

11 considered an eligible program, if— 

12 ‘‘(A) the institution demonstrates to the sat13 isfaction of the Secretary that— 

14 ‘‘(i) the Secretary’s calculation of such 

15 program’s loan repayment rate is not accu16 rate; and 

17 ‘‘(ii) recalculation would increase such 

18 program’s loan repayment rate for any of 

19 the 3 fiscal years equal to or greater than 

20 45 percent; or 

21 ‘‘(B) the program is not subject to para22 graph (1) by reason of paragraph (3). 

23 ‘‘(3) PARTICIPATION RATE INDEX.— 

24 ‘‘(A) IN GENERAL.—An institution that 

25 demonstrates to the Secretary that a program’s 


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1 participation rate index is equal to or less than 

2 0.11 for any of the 3 most recent fiscal years for 

3 which data is available shall not be subject to 

4 paragraph (1). 

5 ‘‘(B) INDEX CALCULATION.—The participa6 tion rate index for a program shall be deter7 mined by multiplying— 

8 ‘‘(i) the amount of the difference be9 tween— 

10 ‘‘(I) 1.0; and 

11 ‘‘(II) the quotient that results by 

12 dividing— 

13 ‘‘(aa) the program’s loan re14 payment rate for a fiscal year, or 

15 the weighted average loan repay16 ment rate for a fiscal year, by 

17 ‘‘(bb) 100; and 

18 ‘‘(ii) the quotient that results by divid19 ing— 

20 ‘‘(I) the percentage of the pro21 gram’s regular students, enrolled on at 

22 least a half-time basis, who received a 

23 covered loan for a 12-month period 

24 ending during the 6 months imme25 diately preceding the fiscal year for 


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1 which the program’s loan repayment 

2 rate or the weighted average loan re3 payment rate is determined, by 

4 ‘‘(II) 100. 

5 ‘‘(C) DATA.—An institution shall provide 

6 the Secretary with sufficient data to determine 

7 the program’s participation rate index not later 

8 than 30 days after receiving an initial notifica9 tion of the program’s draft loan repayment rate 

10 under subsection (d)(4)(C). 

11 ‘‘(D) NOTIFICATION.—Prior to publication 

12 of a final loan repayment rate under subsection 

13 (d)(4)(A) for a program at an institution that 

14 provides the data described in subparagraph (C), 

15 the Secretary shall notify the institution of the 

16 institution’s compliance or noncompliance with 

17 subparagraph (A). 

18 ‘‘(b) REPAYMENT IMPROVEMENT AND ASSESSMENT OF

19 ELIGIBILITY BASED ON LOW LOAN REPAYMENT RATES.— 

20 ‘‘(1) FIRST YEAR.— 

21 ‘‘(A) IN GENERAL.—An institution with a 

22 program whose loan repayment rate is less than 

23 45 percent for any fiscal year shall establish a 

24 repayment improvement task force to prepare a 

25 plan to— 


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1 ‘‘(i) identify the factors causing such 

2 program’s loan repayment rate to fall below 

3 such percent; 

4 ‘‘(ii) establish measurable objectives 

5 and the steps to be taken to improve the 

6 program’s loan repayment rate; and 

7 ‘‘(iii) specify actions that the institu8 tion can take to improve student loan re9 payment, including appropriate counseling 

10 regarding loan repayment options. 

11 ‘‘(B) TECHNICAL ASSISTANCE.—Each insti12 tution subject to this paragraph shall submit the 

13 plan under subparagraph (A) to the Secretary, 

14 who shall review the plan and offer technical as15 sistance to the institution to promote improved 

16 student loan repayment. 

17 ‘‘(2) SECOND CONSECUTIVE YEAR.— 

18 ‘‘(A) IN GENERAL.—An institution with a 

19 program whose loan repayment rate is less than 

20 45 percent for two consecutive fiscal years, 

21 shall— 

22 ‘‘(i) require the institution’s repayment 

23 improvement task force established under 

24 paragraph (1) to review and revise the plan 

25 required under such paragraph; and 


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1 ‘‘(ii) submit such revised plan to the 

2 Secretary. 

3 ‘‘(B) REVIEW BY THE SECRETARY.—The 

4 Secretary— 

5 ‘‘(i) shall review each revised plan sub6 mitted in accordance with this paragraph; 

7 and 

8 ‘‘(ii) may direct that such plan be 

9 amended to include actions, with measur10 able objectives, that the Secretary deter11 mines, based on available data and analyses 

12 of student loan repayment and non-repay13 ment, will promote student loan repayment. 

14 ‘‘(c) PROGRAMMATIC LOAN REPAYMENT RATE DE15 FINED.— 

16 ‘‘(1) IN GENERAL.—Except as provided in sub17 section (d), for purposes of this section, the term ‘loan 

18 repayment rate’ means, when used with respect to an 

19 educational program at an institution— 

20 ‘‘(A) with respect to any fiscal year in 

21 which 30 or more current and former students in 

22 such program enter repayment on a covered loan 

23 received for attendance in such program, the per24 centage of such current and former students— 


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1 ‘‘(i) who enter repayment in such fis2 cal year on a covered loan received for at3 tendance in such program; and 

4 ‘‘(ii) who are in a positive repayment 

5 status on each such covered loan at the end 

6 of the second fiscal year following the fiscal 

7 year in which such students entered repay8 ment on such loan; and 

9 ‘‘(B) with respect to any fiscal year in 

10 which fewer than 30 of the current and former 

11 students in such program enter repayment on a 

12 covered loan received for attendance in such pro13 gram, the percentage of such current and former 

14 students— 

15 ‘‘(i) who, in any of the three most re16 cent fiscal years, entered repayment on a 

17 covered loan received for attendance in such 

18 program; and 

19 ‘‘(ii) who are in a positive repayment 

20 status on each such covered loan at the end 

21 of the second fiscal year following the fiscal 

22 year in which such students entered repay23 ment on such loan. 

24 ‘‘(2) GUARANTY AGENCY REQUIREMENTS.—The 

25 Secretary shall require that each guaranty agency 


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1 that has insured loans for current or former students 

2 of the institution afford such institution a reasonable 

3 opportunity (as specified by the Secretary) to review 

4 and correct errors in the information required to be 

5 provided to the Secretary by the guaranty agency for 

6 the purposes of calculating a loan repayment rate for 

7 programs at such institution, prior to the calculation 

8 of such rate. 

9 ‘‘(3) POSITIVE REPAYMENT STATUS.—For pur10 poses of this section, the term ‘positive repayment sta11 tus’, when used with respect to a borrower of a cov12 ered loan, means— 

13 ‘‘(A) the borrower has entered repayment on 

14 such loan, and such loan is less than 90 days de15 linquent; 

16 ‘‘(B) the loan is paid in full (but not 

17 through consolidation); or 

18 ‘‘(C) with respect to a covered loan that is 

19 a Federal ONE Loan, the loan is in a deferment 

20 described in 469A(b)(1), and with respect to a 

21 covered loan made, insured, or guaranteed under 

22 part B or made under part D, the loan is in a 

23 deferment or forbearance that is comparable to a 

24 deferment described in 469A(b)(1). 


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1 ‘‘(4) COVERED LOAN.—For purposes of this sec2 tion— 

3 ‘‘(A) the term ‘covered loan’ means— 

4 ‘‘(i) a loan made, insured, or guaran5 teed under section 428 or 428H; 

6 ‘‘(ii) a Federal Direct Stafford Loan; 

7 ‘‘(iii) a Federal Direct Unsubsidized 

8 Stafford Loan; 

9 ‘‘(iv) a Federal Direct PLUS Loan 

10 issued to a graduate or professional student; 

11 ‘‘(v) a Federal ONE Loan (other than 

12 a Federal ONE Parent Loan or a Federal 

13 ONE Consolidation Loan not described in 

14 clause (vi)); or 

15 ‘‘(vi) the portion of a loan made under 

16 section 428C, a Federal Direct Consolida17 tion Loan, or a Federal ONE Consolidation 

18 Loan that is used to repay any covered loan 

19 described in clauses (i) through (v); and 

20 ‘‘(B) the term ‘covered loan’ does not in21 clude a loan described in subparagraph (A) that 

22 has been discharged under section 437(a). 

23 ‘‘(d) SPECIAL RULES.— 

24 ‘‘(1) IN GENERAL.—In the case of a student who 

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1 tion of higher education or for more than one edu2 cational program at an institution, the student (and 

3 such student’s subsequent positive repayment status 

4 on a covered loan, if applicable)) shall be attributed 

5 to each institution of higher education and edu6 cational program for attendance at which the student 

7 received a loan that entered repayment for the fiscal 

8 year for which the loan repayment rate is being cal9 culated. 

10 ‘‘(2) DELINQUENT.—A loan on which a payment 

11 is made by an institution of higher education, such 

12 institutions’s owner, agent, contractor, employee, or 

13 any other entity or individual affiliated with such in14 stitution, in order to prevent the borrower from being 

15 more than 90 days delinquent on the loan, shall be 

16 considered more than 90 days delinquent for purposes 

17 of this subsection. 

18 ‘‘(3) REGULATIONS TO PREVENT EVASIONS.—The 

19 Secretary shall prescribe regulations designed to pre20 vent an institution of higher education from evading 

21 the application of a loan repayment rate determina22 tion under this section to an educational program at 

23 such institution through— 


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1 ‘‘(A) the use of such measures as branching, 

2 consolidation, change of ownership or control, or 

3 any similar device; or 

4 ‘‘(B) creating a new educational program 

5 that is substantially similar to a program deter6 mined to be ineligible under subsection (a). 

7 ‘‘(4) COLLECTION AND REPORTING OF LOAN RE8 PAYMENT RATES.— 

9 ‘‘(A) IN GENERAL.—The Secretary shall 

10 publish not less often than once every fiscal year 

11 a report showing final loan repayment data for 

12 each program at each institution of higher edu13 cation for which a loan repayment rate is cal14 culated under this section. 

15 ‘‘(B) PUBLICATION.—The Secretary shall 

16 publish the report described in subparagraph (A) 

17 by September 30 of each year. 

18 ‘‘(C) DRAFTS.— 

19 ‘‘(i) IN GENERAL.—The Secretary shall 

20 provide institutions with draft loan repay21 ment rates for each educational program at 

22 the institution at least 6 months prior to 

23 the release of the final rates under subpara24 graph (A). 


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1 ‘‘(ii) CHALLENGE OF DRAFT RATES.— 

2 An institution may challenge a program’s 

3 draft loan repayment rate provided under 

4 clause (i) for any fiscal year by dem5 onstrating to the satisfaction of the Sec6 retary that such draft loan repayment rate 

7 is not accurate. 

8 ‘‘(e) TRANSITION PERIOD.— 

9 ‘‘(1) DURING THE TRANSITION PERIOD.—During 

10 the transition period, the cohort default rate for each 

11 institution of higher education shall be calculated 

12 under section 435(m)(1) for each fiscal year for which 

13 such rate has not yet been calculated and any require14 ments with respect to such rates shall continue to 

15 apply, except that the loans with respect to which 

16 such cohort default rate shall be calculated shall be the 

17 covered loans defined in subsection (c)(4). 

18 ‘‘(2) AFTER THE TRANSITION PERIOD.—After the 

19 transition period, no new cohort default rates shall be 

20 calculated for an institution of higher education and 

21 any requirements with respect to such rates shall 

22 cease to apply. 

23 ‘‘(3) DEFINITIONS.—For purposes of this sub24 section— 


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1 ‘‘(A) the term ‘cohort default rate’ has the 

2 meaning given the term in section 435(m); and 

3 ‘‘(B) the term ‘transition period’ means the 

4 period— 

5 ‘‘(i) beginning on the date of enact6 ment of the PROSPER Act; and 

7 ‘‘(ii) ending on the date on which the 

8 Secretary has published under subsection 

9 (d)(4)(A) the final loan repayment rate for 

10 each program at each institution of higher 

11 education with respect to each of fiscal 

12 years 2016, 2017, and 2018.’’. 

13 SEC. 483. MASTER CALENDAR. 

14 Section 482 (20 U.S.C. 1089) is amended— 

15 (1) in subsection (a)— 

16 (A) in paragraph (1)— 

17 (i) in subparagraph (A), by striking 

18 ‘‘February 1’’ and inserting ‘‘January 15’’; 

19 (ii) in subparagraph (B), by striking 

20 ‘‘March 1’’ and inserting ‘‘February 1’’; 

21 (iii) in subparagraph (C), by striking 

22 ‘‘June 1’’ and inserting ‘‘May 1’’; 

23 (iv) in subparagraph (D), by striking 

24 ‘‘August 15’’ and inserting ‘‘July 15’’; 


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1 (v) by striking subparagraph (E), and 

2 redesignating subparagraphs (F) and (G) 

3 as subparagraphs (E) and (F), respectively; 

4 and 

5 (vi) in subparagraph (E), as so redes6 ignated, by striking ‘‘October 1’’ and insert7 ing ‘‘September 1’’; and 

8 (vii) in subparagraph (F), as so redes9 ignated, by striking ‘‘November 1’’ and in10 serting ‘‘October 1’’; 

11 (B) in paragraph (2)— 

12 (i) in subparagraph (F), by striking 

13 ‘‘and final Pell Grant payment schedule’’; 

14 (ii) in subparagraph (J), by striking 

15 ‘‘June 1’’ and inserting ‘‘May 1’’; 

16 (iii) by redesignating subparagraphs 

17 (C) through (J) as subparagraphs (D) 

18 through (K), respectively; and 

19 (iv) by inserting after subparagraph 

20 (B) the following: 

21 ‘‘(C) by November 1: final Pell Grant pay22 ment schedule;’’; and 

23 (2) in subsection (b)— 

24 (A) by striking ‘‘413D(d), 442(d), or 

25 462(i)’’ and inserting ‘‘442(d)’’; and 


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1 (B) by striking ‘‘the programs under sub2 part 3 of part A, part C, and part E, respec3 tively’’ and inserting ‘‘part C’’. 

4 SEC. 484. FAFSA SIMPLIFICATION. 

5 (a) IN GENERAL.—Section 483 (20 U.S.C. 1090) is 

6 amended— 

7 (1) in subsection (a)(3)— 

8 (A) in subparagraph (E), by adding at the 

9 end the following: ‘‘Notwithstanding the limita10 tions on sharing data described in this para11 graph, an institution of higher education may, 

12 with explicit written consent of the applicant, 

13 provide such information as is necessary to a 

14 scholarship granting organization designated by 

15 the applicant to assist the applicant in applying 

16 for and receiving financial assistance for the ap17 plicant’s education at that institution. An orga18 nization that receives information pursuant to 

19 the preceding sentence shall not maintain, ware20 house, sell, or otherwise store or share such infor21 mation after it has been used to determine the 

22 additional aid available for such applicant and 

23 the organization shall destroy the information 

24 after such determination has been made.’’; and 

25 (B) by adding at the end the following: 


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1 ‘‘(I) FORMAT.—Not later than 1 year after 

2 the date of the enactment of the PROSPER Act, 

3 the Secretary shall make the electronic version of 

4 the forms under this paragraph available 

5 through a technology tool optimized for use on 

6 mobile devices. Such technology tool shall, at 

7 minimum, enable applicants to— 

8 ‘‘(i) save data; and 

9 ‘‘(ii) submit the FAFSA of such appli10 cant to the Secretary through such tool. 

11 ‘‘(J) CONSUMER TESTING.—In developing 

12 and maintaining the electronic version of the 

13 forms under this paragraph and the technology 

14 tool for mobile devices under subparagraph (I), 

15 the Secretary shall conduct consumer testing 

16 with appropriate persons to ensure the forms 

17 and technology tool are designed to be easily usa18 ble and understandable by students and families. 

19 Such consumer testing shall include— 

20 ‘‘(i) current and prospective college 

21 students, family members of such students, 

22 and other individuals with expertise in stu23 dent financial assistance application proc24 esses; 


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1 ‘‘(ii) dependent students and inde2 pendent students who meet the requirements 

3 under subsection (b) or (c) of section 479; 

4 and 

5 ‘‘(iii) dependent students and inde6 pendent students who do not meet the re7 quirements under subsection (b) or (c) of 

8 section 479.’’; and 

9 (2) by amending subsection (f) to read as follows: 

10 ‘‘(f) USE OF INTERNAL REVENUE SERVICE DATA RE11 TRIEVAL TOOL TO POPULATE FAFSA.— 

12 ‘‘(1) SIMPLIFICATION EFFORTS.—The Secretary 

13 shall— 

14 ‘‘(A) make every effort to allow applicants 

15 to utilize the current data retrieval tool to trans16 fer, through a rigorous authentication process, 

17 data available from the Internal Revenue Service 

18 to reduce the amount of original data entry by 

19 applicants and strengthen the reliability of data 

20 used to calculate expected family contributions, 

21 including through the use of technology to— 

22 ‘‘(i) allow an applicant to automati23 cally populate the electronic version of the 

24 forms under this paragraph with data 


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1 available from the Internal Revenue Serv2 ice; and 

3 ‘‘(ii) direct an applicant to appro4 priate questions on such forms based on the 

5 applicant’s answers to previous questions; 

6 and 

7 ‘‘(B) allow single taxpayers, married tax8 payers filing jointly, and married taxpayers fil9 ing separately to utilize the current data re10 trieval tool to its full capacity. 

11 ‘‘(2) USE OF TAX RETURN IN APPLICATION PROC12 ESS.—The Secretary shall continue to examine wheth13 er data provided by the Internal Revenue Service can 

14 be used to generate an expected family contribution 

15 without additional action on the part of the student 

16 and taxpayer. 

17 ‘‘(3) REPORTS ON FAFSA SIMPLIFICATION EF18 FORTS.—Not less than once every year, the Secretary 

19 shall report to the authorizing committees on— 

20 ‘‘(A) the progress of the simplification ef21 forts under this subsection; and 

22 ‘‘(B) the security of the data retrieval tool.’’. 

23 (b) TECHNICAL AMENDMENT.—Section 483(a)(9)(C) 

24 (20 U.S.C. 1090(a)(9)(C)) is amended by inserting ‘‘, inVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00413 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 cluding through the tool described in section 485E(c)’’ before 

2 the semicolon. 

3 SEC. 485. STUDENT ELIGIBILITY. 

4 Section 484 (20 U.S.C. 1091) is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (1), by striking ‘‘a degree, 

7 certificate, or other program (including a pro8 gram of study abroad approved for credit by the 

9 eligible institution at which such student is en10 rolled) leading to a’’ and inserting ‘‘an eligible 

11 program (including a program of study abroad 

12 approved for credit by the eligible institution at 

13 which such student is enrolled) leading to a de14 gree, certificate, or other’’; and 

15 (B) in paragraph (3), by inserting ‘‘as in 

16 effect on the day before the date of enactment of 

17 the PROSPER Act and pursuant to section 

18 461(a) of such Act,’’ after ‘‘part E,’’; 

19 (2) in subsection (b)— 

20 (A) in paragraph (3), by striking ‘‘part B 

21 or D’’ and inserting ‘‘part B, D, or E’’; and 

22 (B) by adding at the end the following: 

23 ‘‘(6) For purposes of competency-based education, in 

24 order to be eligible to receive any loan under this title for 

25 an award year, a student may be enrolled in coursework 


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1 attributable only to 2 academic years within the award 

2 year.’’; 

3 (3) in subsection (c)— 

4 (A) in paragraph (1)— 

5 (i) in subparagraph (A)— 

6 (I) by inserting ‘‘least as fre7 quently as’’ before ‘‘the end of each’’; 

8 and 

9 (II) by striking ‘‘, and’’ at the end 

10 and inserting a semicolon; 

11 (ii) in subparagraph (B)— 

12 (I) by striking ‘‘the student has a 

13 cumulative’’ and inserting the fol14 lowing: ‘‘the student has— 

15 ‘‘(i) a cumulative’’; 

16 (II) by striking ‘‘the second’’ and 

17 inserting ‘‘each’’; 

18 (III) by striking the period at the 

19 end and inserting ‘‘; or’’ ; and 

20 (IV) by adding at the end the fol21 lowing: 

22 ‘‘(ii) for the purposes of competency23 based programs, a non-grade equivalent 

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1 tion, as determined by the institution, at 

2 the end of each such academic year; and’’; 

3 and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(C) the student maintains a pace in his or her 

7 educational program that— 

8 ‘‘(i) ensures that the student completes the 

9 program within the maximum timeframe; and 

10 ‘‘(ii) is measured by a method determined 

11 by the institution which may be based on credit 

12 hours, clock hours, or competencies completed.’’; 

13 (B) in paragraph (2), by striking ‘‘grading 

14 period’’ and inserting ‘‘evaluation period’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(4) For purposes of this subsection, the term ‘max17 imum timeframe’ means— 

18 ‘‘(A) with respect to an undergraduate program 

19 measured in credit hours, a period that is no longer 

20 than 150 percent of the published length of the edu21 cational program, as measured in credit hours; 

22 ‘‘(B) with respect to an undergraduate program 

23 measured in competencies, a period that is no longer 

24 than 150 percent of the published length of the edu25 cational program, as measured in competencies; 


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1 ‘‘(C) with respect to an undergraduate program 

2 measured in clock hours, a period that is no longer 

3 than 150 percent of the published length of the edu4 cational program, as measured by the cumulative 

5 number of clock hours the student is required to com6 plete and expressed in calendar time; and 

7 ‘‘(D) with respect to a graduate program, a pe8 riod defined by the institution that is based on the 

9 length of the educational program.’’; 

10 (4) by amending subsection (d) to read as fol11 lows: 

12 ‘‘(d) ADDITIONAL STUDENT ELIGIBILITY.— 

13 ‘‘(1) ABILITY TO BENEFIT STUDENTS.—In order 

14 for a student who does not have a certificate of grad15 uation from a school providing secondary education, 

16 or the recognized equivalent of such certificate, to be 

17 eligible for any assistance under subpart 1 of part A 

18 and parts C, D, and E of this title, the student shall 

19 be determined by the institution of higher education 

20 as having the ability to benefit from the education of21 fered by the institution of higher education upon sat22 isfactory completion of 6 credit hours or the equiva23 lent coursework that are applicable toward a degree 

24 or certificate offered by the institution of higher edu25 cation. 


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1 ‘‘(2) HOMESCHOOL STUDENTS.—A student who 

2 has completed a secondary school education in a home 

3 school setting that is treated as a home school or pri4 vate school under State law shall be eligible for assist5 ance under subpart 1 of part A and parts C, D, and 

6 E of this title. 

7 ‘‘(3) SECONDARY EDUCATION PROVIDED BY NON8 PROFIT CORPORATIONS.—A student who has com9 pleted a secondary education provided by a school op10 erating as a nonprofit corporation that offers a pro11 gram of study determined acceptable for admission at 

12 an institution of higher education shall be eligible for 

13 assistance under subpart 1 of part A and parts C, D, 

14 and E of this title.’’. 

15 (5) in subsection (f)(1), by striking ‘‘or part E’’ 

16 both places it appears and inserting the following: ‘‘, 

17 part E (as in effect on the day before the date of en18 actment of the PROSPER Act and pursuant to sec19 tion 461(a) of such Act), or part E (as in effect on 

20 or after the date of enactment of the PROSPER 

21 Act)’’; 

22 (6) by striking subsection (l); 

23 (7) in subsection (n)— 

24 (A) by striking ‘‘(n) DATA BASE MATCH25 ING.—To enforce’’; and inserting the following: 


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1 ‘‘(n) SELECTIVE SERVICE REGISTRATION.— 

2 ‘‘(1) DATA BASE MATCHING.—To enforce’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(2) EFFECT OF FAILURE TO REGISTER FOR SE5 LECTIVE SERVICE.—A person who is 26 years of age 

6 or older shall not be ineligible for assistance or a ben7 efit provided under this title by reason of failure to 

8 present himself for, and submit to, registration under 

9 section 3 of the Military Selective Service Act (50 

10 U.S.C. 3802).’’; and 

11 (8) by redesignating subsections (m) through (t) 

12 as subsections (l) through (s). 

13 SEC. 486. STATUTE OF LIMITATIONS. 

14 Section 484A (20 U.S.C. 1088) is amended— 

15 (1) in subsection (a)(2)(C)— 

16 (A) by striking ‘‘or 463(a)’’ and inserting ‘‘, 

17 section 463(a) (as in effect on the day before the 

18 date of enactment of the PROSPER Act and 

19 pursuant to section 461(a) of such Act), or sec20 tion 463 (as in effect on or after the date of en21 actment of the PROSPER Act)’’; and 

22 (B) by striking ‘‘or E’’ and inserting ‘‘, E 

23 (as in effect on the day before the date of enact24 ment of the PROSPER Act and pursuant to sec25 tion 461(a) of such Act), or E (as in effect on 


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1 or after the date of enactment of the PROSPER 

2 Act)’’; and 

3 (2) in subsection (b)— 

4 (A) by striking ‘‘and’’ at the end of para5 graph (2); 

6 (B) in paragraph (3)— 

7 (i) by inserting ‘‘(as in effect on the 

8 day before the date of enactment of the 

9 PROSPER Act and pursuant to section 

10 461(a) of such Act)’’ after ‘‘part E’’; 

11 (ii) by inserting ‘‘(as so in effect)’’ 

12 after ‘‘section 463(a)’’; and 

13 (iii) by striking the period at the end 

14 and inserting ‘‘; and’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(4) in collecting any obligation arising from a 

17 loan made under part E (as in effect on or after the 

18 date of enactment of the PROSPER Act), an institu19 tion of higher education that has an agreement with 

20 the Secretary pursuant to section 463(a) (as so in ef21 fect) shall not be subject to a defense raised by any 

22 borrower based on a claim of infancy.’’. 

23 SEC. 487. INSTITUTIONAL REFUNDS. 

24 Section 484B (20 U.S.C. 1091b) is amended— 

25 (1) in subsection (a)— 


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1 (A) in paragraph (1)— 

2 (i) by striking ‘‘If a recipient’’ and in3 serting the following: 

4 ‘‘(A) CONSEQUENCE OF WITHDRAWAL.—If a 

5 recipient’’; and 

6 (ii) by adding at the end the following: 

7 ‘‘(B) SPECIAL RULE.—For purposes of sub8 paragraph (A), a student— 

9 ‘‘(i) who is enrolled in a program of10 fered in modules is not considered with11 drawn if the change in the student’s attend12 ance constitutes a change in enrollment sta13 tus within the payment period rather than 

14 a discontinuance of attendance within the 

15 payment period; and 

16 ‘‘(ii) is considered withdrawn if the 

17 student follows the institution’s official 

18 withdrawal procedures or leaves without no19 tifying the institution and has not returned 

20 before the end of the payment period.’’; 

21 (B) in paragraph (3)— 

22 (i) in subparagraph (B), by striking 

23 clauses (i) and (ii) and inserting the fol24 lowing: 


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1 ‘‘(i) 0 percent, if the day the student 

2 withdrew occurs when the student has com3 pleted (as determined in accordance with 

4 subsection (d)) 0 to 24 percent of the pay5 ment period or period of enrollment; 

6 ‘‘(ii) 25 percent, if the day the student 

7 withdrew occurs when the student has com8 pleted (as determined in accordance with 

9 subsection (d)) 25 to 49 percent of the pay10 ment period or period of enrollment; 

11 ‘‘(iii) 50 percent, if the day the student 

12 withdrew occurs when the student has com13 pleted (as determined in accordance with 

14 subsection (d)) 50 to 74 percent of the pay15 ment period or period of enrollment; or 

16 ‘‘(iv) 75 percent, if the day the student 

17 withdrew occurs when the student has com18 pleted (as determined in accordance with 

19 subsection (d)) 75 to 99 percent of the pay20 ment period or period of enrollment.’’. 

21 (ii) in subparagraph (C)(i), by strik22 ing ‘‘subparts 1 and 3 of part A, or loan as23 sistance under parts B, D,’’ and inserting 

24 ‘‘subpart 1 of part A or loan assistance 

25 under parts D’’; and 


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1 (C) in paragraph (4)— 

2 (i) in subparagraph (A), by striking 

3 ‘‘Secretary), the institution of higher edu4 cation shall contact the borrower’’ and in5 serting ‘‘Secretary), the institution of higher 

6 education shall have discretion to determine 

7 whether all or a portion of the late or post8 withdrawal disbursement should be made, 

9 under a publicized institutional policy. If 

10 the institution of higher education deter11 mines that a disbursement should be made, 

12 the institution shall contact the borrower’’; 

13 and 

14 (ii) in subparagraph (B) by striking 

15 ‘‘institution or the student, or both, as may 

16 be required under paragraphs (1) and (2) of 

17 subsection (b), to the programs under this 

18 title in the order specified in’’ and inserting 

19 ‘‘institution, as may be required under 

20 paragraph (1) of subsection (b), to the pro21 grams under this title in accordance with’’; 

22 (2) by amending subsection (b) to read as fol23 lows: 

24 ‘‘(b) RETURN OF TITLE IV PROGRAM FUNDS.— 


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1 ‘‘(1) RESPONSIBILITY OF THE INSTITUTION.— 

2 The institution shall return not later than 60 days 

3 from the determination of withdrawal, in accordance 

4 with paragraph (3), the amount of grant and loan as5 sistance awarded under this title that has not been 

6 earned by the student, as calculated under subsection 

7 (a)(3)(C). 

8 ‘‘(2) RESPONSIBILITY OF THE STUDENT.— 

9 ‘‘(A) IN GENERAL.—The student is not re10 sponsible to return assistance that has not been 

11 earned, except that the institution may require 

12 the student to pay to the institution up to 10 

13 percent of the amount owed by the institution in 

14 paragraph (1). 

15 ‘‘(B) RULE OF CONSTRUCTION.—Nothing in 

16 this section shall be construed to prevent an in17 stitution from enforcing the published institu18 tional refund policies of such institution. 

19 ‘‘(3) ORDER OF RETURN OF TITLE IV FUNDS.— 

20 ‘‘(A) IN GENERAL.—Excess funds returned 

21 by the institution in accordance with paragraph 

22 (1) shall be credited to awards under subpart 1 

23 of part A for the payment period or period of en24 rollment for which a return of funds is required. 


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1 ‘‘(B) REMAINING EXCESSES.—If excess 

2 funds remain after repaying all outstanding 

3 grant amounts, the remaining excess shall be 

4 credited in the following order: 

5 ‘‘(i) To outstanding balances on loans 

6 made under this title to the student or on 

7 behalf of the student for the payment period 

8 or period of enrollment for which a return 

9 of funds is required. 

10 ‘‘(ii) To other assistance awarded 

11 under this title for which a return of funds 

12 is required.’’; 

13 (3) by amending subsection (c) to read as fol14 lows: 

15 ‘‘(c) WITHDRAWAL DATE.— 

16 ‘‘(1) IN GENERAL.—In this section, the term ‘day 

17 the student withdrew’— 

18 ‘‘(A) for institutions not required to take at19 tendance, is the date as determined by the insti20 tution that— 

21 ‘‘(i) the student began the withdrawal 

22 process prescribed and publicized by the in23 stitution, or a later date if the student con24 tinued attendance despite beginning the 


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1 withdrawal process, but did not then com2 plete the payment period; or 

3 ‘‘(ii) in the case of a student who does 

4 not begin the withdrawal process, the date 

5 that is the mid-point of the payment period 

6 for which assistance under this title was 

7 disbursed or another date documented by 

8 the institution; or 

9 ‘‘(B) for institutions required to take at10 tendance, is determined by the institution from 

11 such attendance records. 

12 ‘‘(2) SPECIAL RULE.—Notwithstanding para13 graph (1), if the institution determines that a student 

14 did not begin the withdrawal process, due to illness, 

15 accident, grievous personal loss, or other such cir16 cumstances beyond the student’s control, the institu17 tion may determine the appropriate withdrawal date 

18 under its own defined policies. 

19 ‘‘(3) ATTENDANCE.—An institution is required 

20 to take attendance if an institution’s accrediting 

21 agency or State licensing agency has a requirement 

22 that the institution take attendance for all students in 

23 an academic program throughout the entire payment 

24 period.’’; and 

25 (4) by striking subsections (d) and (e). 


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1 SEC. 488. INFORMATION DISSEMINATED TO PROSPECTIVE 

2 AND ENROLLED STUDENTS. 

3 (a) USE OF WEBSITE TO DISSEMINATE INFORMA4 TION.—Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amend5 ed in the matter preceding subparagraph (A) by striking 

6 the second and third sentences and inserting the following: 

7 ‘‘The information required by this section shall be produced 

8 and be made readily available to enrolled and prospective 

9 students on the institution’s website (or in other formats 

10 upon request).’’. 

11 (b) INFORMATION ON PROHIBITING COPYRIGHT IN12 FRINGEMENT.—Section 485(a)(1)(P) (20 U.S.C. 

13 1092(a)(1)(P)) is amended by striking ‘‘, including—’’ and 

14 all that follows and inserting a period. 

15 (c) ELIMINATION OF CERTAIN REPORTING REQUIRE16 MENTS.— 

17 (1) IN GENERAL.—Section 485(a)(1) (20 U.S.C. 

18 1092(a)(1)) is amended— 

19 (A) by striking subparagraph (L); 

20 (B) by redesignating subparagraphs (M) 

21 through (P) as subparagraphs (L) through (O); 

22 and 

23 (C) by striking subparagraphs (Q) through 

24 (V) and inserting the following: 

25 ‘‘(P) the fire safety report prepared by the 

26 institution pursuant to subsection (i); and 


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1 ‘‘(Q) the link to the institution’s informa2 tion on the College Dashboard website operated 

3 under section 132.’’. 

4 (2) CONFORMING AMENDMENTS.—Section 485(a) 

5 (20 U.S.C. 1092(a)) is amended by striking para6 graphs (3) through (7). 

7 (d) EXIT COUNSELING.—Section 485(b) (20 U.S.C. 

8 1092(b)) is amended— 

9 (1) in paragraph (1)(A)— 

10 (A) in the matter preceding clause (i)— 

11 (i) by striking ‘‘through financial aid 

12 offices or otherwise’’ and inserting ‘‘through 

13 the use of an interactive program, during 

14 an exit counseling session that is in-person 

15 or online, or through the use of the online 

16 counseling tool described in subsection 

17 (n)(1)(A)’’; and 

18 (ii) by inserting ‘‘, as in effect on the 

19 day before the date of enactment of the 

20 PROSPER Act and pursuant to section 

21 461(a) of such Act or made under part E 

22 (other than Federal ONE Parent Loans), as 

23 in effect on or after the date of enactment 

24 of the PROSPER Act’’ after ‘‘part E’’; 


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1 (B) by redesignating clauses (i) through (ix) 

2 as clauses (iv) through (xii), respectively; 

3 (C) by inserting before clause (iv), as so re4 designated, the following: 

5 ‘‘(i) a summary of the outstanding balance of 

6 principal and interest due on the loans made to the 

7 borrower under this title; 

8 ‘‘(ii) an explanation of the grace period pre9 ceding repayment and the expected date that the bor10 rower will enter repayment; 

11 ‘‘(iii) an explanation of cases of interest capital12 ization and that the borrower has the option to pay 

13 any interest that has accrued while the borrower was 

14 in school or that may accrue during the grace period 

15 preceding repayment or during an authorized period 

16 of deferment or forbearance, prior to the capitaliza17 tion of the interest;’’; 

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

19 (i) by striking ‘‘sample information 

20 showing the average’’ and inserting ‘‘infor21 mation, based on the borrower’s outstanding 

22 balance described in clause (i), showing the 

23 borrower’s’’; and 

24 (ii) by striking ‘‘of each plan’’ and in25 serting ‘‘of at least the standard repayment 


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1 plan and the income-based repayment plan 

2 under section 466(d)’’; 

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

4 (i) by inserting ‘‘decreased credit 

5 score,’’ after ‘‘credit reports,’’; and 

6 (ii) by inserting ‘‘potential reduced 

7 ability to rent or purchase a home or car, 

8 potential difficulty in securing employ9 ment,’’ after ‘‘Federal law,’’; 

10 (F) in clause (x), as so redesignated, by 

11 striking ‘‘consolidation loan under section 428C 

12 or a’’; 

13 (G) in clauses (xi) and (xii), as so redesig14 nated, by striking ‘‘and’’ at the end; and 

15 (H) by adding at the end the following: 

16 ‘‘(xiii) for each of the borrower’s loans made 

17 under this title for which the borrower is receiving 

18 counseling under this subsection, the contact informa19 tion for the servicer of the loan and a link to the 

20 Website of such servicer; and 

21 ‘‘(xiv) an explanation that an individual has a 

22 right to annually request a disclosure of information 

23 collected by a consumer reporting agency pursuant to 

24 section 612(a) of the Fair Credit Reporting Act (15 

25 U.S.C. 1681j(a)).’’; 


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1 (2) in paragraph (1)(B)— 

2 (A) by inserting ‘‘online or’’ before ‘‘in 

3 writing’’; and 

4 (B) by adding before the period at the end 

5 the following: ‘‘, except that in the case of an in6 stitution using the online counseling tool de7 scribed in subsection (n)(1)(A), the Secretary 

8 shall attempt to provide such information to the 

9 student in the manner described in subsection 

10 (n)(3)(C)’’; and 

11 (3) in paragraph (2)(C), by inserting ‘‘, such as 

12 the online counseling tool described in subsection 

13 (n)(1)(A),’’ after ‘‘electronic means’’. 

14 (e) DEPARTMENTAL PUBLICATION OF DESCRIPTIONS

15 OF ASSISTANCE PROGRAMS.—The third sentence of section 

16 485(d)(1) (20 U.S.C. 1092(d)(1)) is amended by striking 

17 ‘‘part D’’ and inserting ‘‘part D or E’’. 

18 (f) AMENDMENTS TO CLERY ACT.— 

19 (1) PREVENTING INTERFERENCE WITH CRIMINAL

20 JUSTICE PROCEEDINGS; TIMELY WARNINGS; CONSIST21 ENCY OF INSTITUTIONAL CRIME REPORTING.—Section 

22 485(f) (20 U.S.C. 1092(f)) is amended— 

23 (A) by striking paragraph (3) and inserting 

24 the following: 


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1 ‘‘(3) Each institution participating in any pro2 gram under this title, other than a foreign institution 

3 of higher education, shall make timely reports to the 

4 campus community on crimes described in paragraph 

5 (1)(F) that have been reported to campus security of6 ficials and pose a serious and continuing threat to 

7 other students and employees’ safety. Such reports 

8 shall withhold the names of victims as confidential 

9 and shall be provided in a timely manner, except that 

10 an institution may delay issuing a report if the 

11 issuance would compromise ongoing law enforcement 

12 efforts, such as efforts to apprehend a suspect. The re13 port shall also include information designed to assist 

14 students and employees in staying safe and avoiding 

15 similar occurrences to the extent such information is 

16 available and appropriate to include. In assessing in17 stitutional compliance with this section, the Secretary 

18 shall defer to the institution’s determination of wheth19 er a particular crime poses a serious and continuing 

20 threat to the campus community, and the timeliness 

21 of such warning, provided that, in making its deci22 sion, the institution acted reasonably and based on 

23 the considered professional judgement of campus secu24 rity officials, based on the facts and circumstances 

25 known at the time.’’; 


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1 (B) by redesignating paragraph (18) as 

2 paragraph (20); and 

3 (C) by inserting after paragraph (17) the 

4 following: 

5 ‘‘(18) Nothing in this subsection may be construed to 

6 prohibit an institution of higher education from delaying 

7 the initiation of, or suspending, an investigation or institu8 tional disciplinary proceeding involving an allegation of 

9 sexual assault in response to a request from a law enforce10 ment agency or a prosecutor to delay the initiation of, or 

11 suspend, the investigation or proceeding, and any delay or 

12 suspension of such an investigation or proceeding in re13 sponse to such a request may not serve as the grounds for 

14 any sanction or audit finding against the institution or 

15 for the suspension or termination of the institution’s par16 ticipation in any program under this title. 

17 ‘‘(19)(A) Reporting carried out under this subsection 

18 shall be conducted in a manner to ensure maximum consist19 ency with the Uniform Crime Reporting Program of the 

20 Department of Justice. 

21 ‘‘(B) The Secretary shall require institutions of higher 

22 education to report crime statistics under this section using 

23 definitions of such crimes, when available, from the Uni24 form Crime Reporting Program of the Department of Jus25 tice. 


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1 ‘‘(C) The Secretary shall maintain a publicly available 

2 and updated list of all applicable definitions from the Uni3 form Crime Reporting Program of the Department of Jus4 tice. 

5 ‘‘(D) With respect to a report under this subsection, 

6 in the case of a crime for which no Uniform Crime Report7 ing Program of the Department of Justice definition exists, 

8 the Secretary shall require that institutions of higher edu9 cation report such crime according to a definition provided 

10 by the Secretary. 

11 ‘‘(E) An institution of higher education that reports 

12 a crime described in subparagraph (D) shall not be subject 

13 to any penalty or fine for reporting inaccuracies or omis14 sions if the institution of higher education can demonstrate 

15 that it made a reasonable and good faith effort to report 

16 crimes consistent with the definition provided by the Sec17 retary. 

18 ‘‘(F) With respect to a report under this subsection, 

19 the Secretary shall require institutions of higher education 

20 to follow the Hierarchy Rule for reporting crimes under the 

21 Uniform Crime Reporting Program of the Department of 

22 Justice, so as to minimize duplicate reporting and ensure 

23 greater consistency with national crime reporting sys24 tems.’’. 


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1 (2) DUE PROCESS REQUIREMENTS FOR INSTITU2 TIONAL DISCIPLINARY PROCEEDINGS.—Section 

3 485(f)(8)(B)(iv)(I) (20 U.S.C. 1092(f)(8)(B)(iv)(I)) is 

4 amended to read as follows: 

5 ‘‘(I) the investigation of the allegation 

6 and any institutional disciplinary pro7 ceeding in response to the allegation shall be 

8 prompt, impartial, and fair to both the ac9 cuser and the accused by, at a minimum— 

10 ‘‘(aa) providing all parties to the 

11 proceeding with adequate written no12 tice of the allegation not later than 2 

13 weeks prior to the start of any formal 

14 hearing or similar adjudicatory pro15 ceeding, and including in such notice a 

16 description of all rights and respon17 sibilities under the proceeding, a state18 ment of all relevant details of the alle19 gation, and a specific statement of the 

20 sanctions which may be imposed; 

21 ‘‘(bb) providing each person 

22 against whom the allegation is made 

23 with a meaningful opportunity to 

24 admit or contest the allegation; 


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1 ‘‘(cc) ensuring that all parties to 

2 the proceeding have access to all mate3 rial evidence not later than one week 

4 prior to the start of any formal hear5 ing or similar adjudicatory proceeding; 

6 ‘‘(dd) ensuring that the pro7 ceeding is carried out free from con8 flicts of interest by ensuring that there 

9 is no commingling of administrative or 

10 adjudicative roles; and 

11 ‘‘(ee) ensuring that the investiga12 tion and proceeding shall be conducted 

13 by officials who receive annual edu14 cation on issues related to domestic vi15 olence, dating violence, sexual assault, 

16 and stalking, and on how to conduct 

17 an investigation and an institutional 

18 disciplinary proceeding that protects 

19 the safety of victims, ensures fairness 

20 for both the accuser and the accused, 

21 and promotes accountability;’’. 

22 (3) ESTABLISHMENT OF STANDARD OF EVIDENCE

23 FOR INSTITUTIONAL DISCIPLINARY PROCEEDINGS.— 

24 (A) INCLUSION IN STATEMENT OF POLICY.— 

25 Section 485(f)(8)(B) (20 U.S.C. 1092(f)(8)(B)) is 


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1 amended by adding at the end the following new 

2 clause: 

3 ‘‘(viii) The establishment of a standard of evi4 dence that will be used in institutional disciplinary 

5 proceedings involving allegations of sexual assault, 

6 which may be based on such standards and criteria 

7 as the institution considers appropriate (including 

8 the institution’s culture, history, and mission, the val9 ues reflected in its student code of conduct, and the 

10 purpose of the institutional disciplinary proceedings) 

11 so long as the standard is not arbitrary or capricious 

12 and is applied consistently throughout all such pro13 ceedings.’’. 

14 (B) CONFORMING AMENDMENTS.—Section 

15 485(f)(8)(B)(iv) (20 U.S.C. 1092(f)(8)(B)(iv)) is 

16 amended— 

17 (i) by striking ‘‘and’’ at the end of sub18 clause (II); 

19 (ii) by striking the period at the end of 

20 subclause (III) and inserting ‘‘; and’’; and 

21 (iii) by adding at the end the following 

22 new subclause: 

23 ‘‘(IV) in the case of a proceeding involving 

24 an allegation of sexual assault, such proceedings 

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1 ard of evidence established by the institution 

2 under clause (viii), together with a clear state3 ment describing such standard of evidence.’’. 

4 (4) EDUCATION MODULES FOR OFFICIALS CON5 DUCTING INVESTIGATIONS AND INSTITUTIONAL DIS6 CIPLINARY PROCEEDINGS.—Section 485(f)(8) (20 

7 U.S.C. 1092(f)(8)) is amended by adding at the end 

8 the following new subparagraph: 

9 ‘‘(D) In consultation with experts from institutions of 

10 higher education, law enforcement agencies, advocates for 

11 sexual assault victims, experts in due process, and other ap12 propriate persons, the Secretary shall create and regularly 

13 update modules which an institution of higher education 

14 may use to provide the annual education described in sub15 paragraph (B)(iv)(I)(ee) for officials conducting investiga16 tions and institutional disciplinary proceedings involving 

17 allegations described in such subparagraph. If the institu18 tion uses such modules to provide the education described 

19 in such subparagraph, the institution shall be considered 

20 to meet any requirement under such subparagraph or any 

21 other Federal law regarding the education provided to offi22 cials conducting such investigations and proceedings.’’. 

23 (g) MODIFICATION OF CERTAIN REPORTING REQUIRE24 MENTS.— 


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1 (1) FIRE SAFETY.—Section 485(i) (20 U.S.C. 

2 1092(i)) is amended to read as follows: 

3 ‘‘(i) FIRE SAFETY REPORTS.— 

4 ‘‘(1) ANNUAL REPORT.—Each eligible institution 

5 participating in any program under this title that 

6 maintains on-campus student housing facilities shall, 

7 on an annual basis, publish a fire safety report, 

8 which shall contain information with respect to the 

9 campus fire safety practices and standards of that in10 stitution, statistics on any fire related incidents or 

11 injuries, and any preventative measures or tech12 nologies. 

13 ‘‘(2) RULES OF CONSTRUCTION.—Nothing in this 

14 subsection shall be construed to— 

15 ‘‘(A) authorize the Secretary to require par16 ticular policies, procedures, programs, or prac17 tices by institutions of higher education with re18 spect to fire safety; 

19 ‘‘(B) affect section 444 of the General Edu20 cation Provisions Act (commonly known as the 

21 ‘Family Education Rights and Privacy Act of 

22 1974’) or the regulations issued under section 

23 264 of the Health Insurance Portability and Ac24 countability Act of 1996 (42 U.S.C. 1320d-2 

25 note); 


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1 ‘‘(C) create a cause of action against any 

2 institution of higher education or any employee 

3 of such an institution for any civil liability; or 

4 ‘‘(D) establish any standard of care. 

5 ‘‘(3) EVIDENCE.—Notwithstanding any other 

6 provision of law, evidence regarding compliance or 

7 noncompliance with this subsection shall not be ad8 missible as evidence in any proceeding of any court, 

9 agency, board, or other entity, except with respect to 

10 an action to enforce this subsection.’’. 

11 (2) MISSING PERSONS PROCEDURES.— 

12 (A) IN GENERAL.—Section 485(j)(1) (20 

13 U.S.C. 1092(j)(1)) is amended to read as follows: 

14 ‘‘(1) IN GENERAL.—Each institution of higher 

15 education that provides on-campus housing and par16 ticipates in any program under this title shall estab17 lish a missing student policy for students who reside 

18 in on-campus housing that, at a minimum, informs 

19 each residing student that the institution will notify 

20 such student’s designated emergency contact and the 

21 appropriate law enforcement agency not later than 24 

22 hours after the time that the student is determined 

23 missing, and in the case of a student who is under 

24 18 years of age, the institution will notify a custodial 

25 parent or guardian.’’. 


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1 (B) RULE OF CONSTRUCTION.—Section 

2 485(j)(2) (20 U.S.C. 1092(j)(2)) is amended— 

3 (i) by striking ‘‘or’’ at the end of sub4 paragraph (A); 

5 (ii) by striking the period at the end of 

6 subparagraph (B) and inserting ‘‘; or’’; and 

7 (iii) by adding at the end the following 

8 new subparagraph: 

9 ‘‘(C) to require an institution of higher edu10 cation to maintain separate missing student 

11 emergency contact information, so long as the in12 stitution otherwise has an emergency contact for 

13 students residing on campus.’’. 

14 (h) ANNUAL COUNSELING.—Section 485(l) (20 U.S.C. 

15 1092(l)) is amended to read as follows: 

16 ‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 

17 ‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 

18 ‘‘(A) IN GENERAL.—Each eligible institu19 tion shall ensure, and annually affirm to the 

20 Secretary, that each individual enrolled at such 

21 institution who receives a Federal Pell Grant or 

22 a loan made under this title (other than a Fed23 eral Direct Consolidation Loan or Federal ONE 

24 Consolidation Loan) receives comprehensive in25 formation on the terms and conditions of such 


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1 Federal Pell Grant or loan and the responsibil2 ities the individual has with respect to such Fed3 eral Pell Grant or loan. Such information shall 

4 be provided, for each award year for which the 

5 individual receives such Federal Pell Grant or 

6 loan, in a simple and understandable manner— 

7 ‘‘(i) during a counseling session con8 ducted in person; 

9 ‘‘(ii) online, with the individual ac10 knowledging receipt of the information; or 

11 ‘‘(iii) through the use of the online 

12 counseling tool described in subsection 

13 (n)(1)(B). 

14 ‘‘(B) USE OF INTERACTIVE PROGRAMS.—In 

15 the case of institutions not using the online 

16 counseling tool described in subsection (n)(1)(B), 

17 the Secretary shall require such institutions to 

18 carry out the requirements of subparagraph 

19 (A)— 

20 ‘‘(i) through the use of interactive pro21 grams; 

22 ‘‘(ii) during an annual counseling ses23 sion that is in-person or online that tests 

24 the individual’s understanding of the terms 


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1 and conditions of the Federal Pell Grant or 

2 loan awarded to the student; and 

3 ‘‘(iii) using simple and understandable 

4 language and clear formatting. 

5 ‘‘(2) ALL INDIVIDUALS.—The information to be 

6 provided under paragraph (1) to each individual re7 ceiving counseling under this subsection shall include 

8 the following: 

9 ‘‘(A) An explanation of how the student 

10 may budget for typical educational expenses and 

11 a sample budget based on the cost of attendance 

12 for the institution. 

13 ‘‘(B) An explanation that an individual has 

14 a right to annually request a disclosure of infor15 mation collected by a consumer reporting agency 

16 pursuant to section 612(a) of the Fair Credit Re17 porting Act (15 U.S.C. 1681j(a)). 

18 ‘‘(C) Based on the most recent data avail19 able from the American Community Survey 

20 available from the Department of Commerce, the 

21 estimated average income and percentage of em22 ployment in the State of domicile of the borrower 

23 for persons with— 

24 ‘‘(i) a high school diploma or equiva25 lent; 


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1 ‘‘(ii) some post-secondary education 

2 without completion of a degree or certifi3 cate; 

4 ‘‘(iii) an associate’s degree; 

5 ‘‘(iv) a bachelor’s degree; and 

6 ‘‘(v) a graduate or professional degree. 

7 ‘‘(D) An introduction to the financial man8 agement resources provided by the Financial Lit9 eracy and Education Commission. 

10 ‘‘(3) STUDENTS RECEIVING FEDERAL PELL

11 GRANTS.—The information to be provided under 

12 paragraph (1) to each student receiving a Federal 

13 Pell Grant shall include the following: 

14 ‘‘(A) An explanation of the terms and con15 ditions of the Federal Pell Grant. 

16 ‘‘(B) An explanation of approved edu17 cational expenses for which the student may use 

18 the Federal Pell Grant. 

19 ‘‘(C) An explanation of why the student 

20 may have to repay the Federal Pell Grant. 

21 ‘‘(D) An explanation of the maximum num22 ber of semesters or equivalent for which the stu23 dent may be eligible to receive a Federal Pell 

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1 maining for which the student may be eligible to 

2 receive a Federal Pell Grant. 

3 ‘‘(E) An explanation that if the student 

4 transfers to another institution not all of the stu5 dent’s courses may be acceptable to apply toward 

6 meeting specific degree or program requirements 

7 at such institution, but the amount of time re8 maining for which a student may be eligible to 

9 receive a Federal Pell Grant, as provided under 

10 subparagraph (D), will not change. 

11 ‘‘(F) An explanation of how the student 

12 may seek additional financial assistance from 

13 the institution’s financial aid office due to a 

14 change in the student’s financial circumstances, 

15 and the contact information for such office. 

16 ‘‘(4) BORROWERS RECEIVING LOANS MADE THIS

17 TITLE (OTHER THAN FEDERAL DIRECT PLUS LOANS

18 MADE ON BEHALF OF DEPENDENT STUDENTS OR FED19 ERAL ONE PARENT LOANS).—The information to be 

20 provided under paragraph (1) to a borrower of a loan 

21 made under this title (other than other than a Federal 

22 Direct PLUS Loan made on behalf of a dependent 

23 student or a Federal ONE Parent Loan) shall include 

24 the following: 


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1 ‘‘(A) To the extent practicable, the effect of 

2 accepting the loan to be disbursed on the eligi3 bility of the borrower for other forms of student 

4 financial assistance. 

5 ‘‘(B) An explanation of the use of the mas6 ter promissory note. 

7 ‘‘(C) An explanation that the borrower is 

8 not required to accept the full amount of the loan 

9 offered to the borrower. 

10 ‘‘(D) An explanation that the borrower 

11 should consider accepting any grant, scholarship, 

12 or State or Federal work-study jobs for which the 

13 borrower is eligible prior to accepting Federal 

14 student loans. 

15 ‘‘(E) An explanation of treatment of loans 

16 made under this title and private education 

17 loans in bankruptcy, and an explanation that if 

18 a borrower decides to take out a private edu19 cation loan— 

20 ‘‘(i) the borrower has the ability to se21 lect a private educational lender of the bor22 rower’s choice; 

23 ‘‘(ii) the proposed private education 

24 loan may impact the borrower’s potential 

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1 cluding Federal financial assistance under 

2 this title; and 

3 ‘‘(iii) the borrower has a right— 

4 ‘‘(I) to accept the terms of the pri5 vate education loan within 30 calendar 

6 days following the date on which the 

7 application for such loan is approved 

8 and the borrower receives the required 

9 disclosure documents, pursuant to sec10 tion 128(e)(6) of the Truth in Lending 

11 Act; and 

12 ‘‘(II) to cancel such loan within 3 

13 business days of the date on which the 

14 loan is consummated, pursuant to sec15 tion 128(e)(7) of such Act. 

16 ‘‘(F) An explanation of the approved edu17 cational expenses for which the borrower may use 

18 a loan made under this title. 

19 ‘‘(G) Information on the annual and aggre20 gate loan limits for a loan made under this title. 

21 ‘‘(H) Information on interest, including the 

22 annual percentage rate of such loan, as cal23 culated using the standard 10-year repayment 

24 term, and how interest accrues and is capitalized 


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1 during periods when the interest is not paid by 

2 the borrower. 

3 ‘‘(I) The option of the borrower to pay the 

4 interest while the borrower is in school. 

5 ‘‘(J) The definition of half-time enrollment 

6 at the institution, during regular terms and 

7 summer school, if applicable, and the con8 sequences of not maintaining at least half-time 

9 enrollment. 

10 ‘‘(K) An explanation of the importance of 

11 contacting the appropriate offices at the institu12 tion of higher education if the borrower with13 draws prior to completing the borrower’s pro14 gram of study so that the institution can provide 

15 exit counseling, including information regarding 

16 the borrower’s repayment options and loan con17 solidation. 

18 ‘‘(L) For a first-time borrower or a bor19 rower of a loan under this title who owes no 

20 principal or interest on such loan— 

21 ‘‘(i) a statement of the anticipated bal22 ance on the loan for which the borrower is 

23 receiving counseling under this subsection; 


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1 ‘‘(ii) based on such anticipated bal2 ance, the anticipated monthly payment 

3 amount under, at minimum— 

4 ‘‘(I) the standard repayment plan; 

5 and 

6 ‘‘(II) an income-based repayment 

7 plan under section 466(d) or 493C, as 

8 determined using available percentile 

9 data from the Bureau of Labor Statis10 tics of the starting salary for the occu11 pation in which the borrower has an 

12 interest in or intends to be employed; 

13 and 

14 ‘‘(iii) an estimate of the projected 

15 monthly payment amount under each re16 payment plan described in clause (ii), based 

17 on the average cumulative indebtedness at 

18 graduation for borrowers of loans made 

19 under this title who are in the same pro20 gram of study as the borrower. 

21 ‘‘(M) For a borrower with an outstanding 

22 balance of principal or interest due on a loan 

23 made under this title— 


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1 ‘‘(i) a current statement of the amount 

2 of such outstanding balance and interest ac3 crued; 

4 ‘‘(ii) based on such outstanding bal5 ance, the anticipated monthly payment 

6 amount under the standard repayment 

7 plan, and the income-based repayment plan 

8 under section 466(d) or 493C, as deter9 mined using available percentile data from 

10 the Bureau of Labor Statistics of the start11 ing salary for the occupation the borrower 

12 intends to be employed; and 

13 ‘‘(iii) an estimate of the projected 

14 monthly payment amount under each re15 payment plan described in clause (ii), based 

16 on— 

17 ‘‘(I) the outstanding balance de18 scribed in clause (i); 

19 ‘‘(II) the anticipated outstanding 

20 balance on the loan for which the stu21 dent is receiving counseling under this 

22 subsection; and 

23 ‘‘(III) a projection for any other 

24 loans made under this title that the 

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1 cept during the borrower’s program of 

2 study based on at least the expected in3 crease in the cost of attendance of such 

4 program. 

5 ‘‘(N) The obligation of the borrower to 

6 repay the full amount of the loan, regardless of 

7 whether the borrower completes or does not com8 plete the program in which the borrower is en9 rolled within the regular time for program com10 pletion. 

11 ‘‘(O) The likely consequences of default on 

12 the loan, including adverse credit reports, delin13 quent debt collection procedures under Federal 

14 law, and litigation, and a notice of the institu15 tion’s most recent loan repayment rate (as de16 fined in section 481B) for the educational pro17 gram in which the borrower is enrolled, an ex18 planation of the loan repayment rate, and the 

19 most recent national average loan repayment 

20 rate for an educational program. 

21 ‘‘(P) Information on the National Student 

22 Loan Data System and how the borrower can 

23 access the borrower’s records. 

24 ‘‘(Q) The contact information for the insti25 tution’s financial aid office or other appropriate 


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1 office at the institution the borrower may contact 

2 if the borrower has any questions about the bor3 rower’s rights and responsibilities or the terms 

4 and conditions of the loan. 

5 ‘‘(5) BORROWERS RECEIVING FEDERAL DIRECT

6 PLUS LOANS FOR DEPENDENT STUDENTS OR FEDERAL

7 ONE PARENT LOANS.—The information to be provided 

8 under paragraph (1) to a borrower of a Federal Di9 rect PLUS Loan for a dependent student or a Federal 

10 ONE Parent Loan shall include the following: 

11 ‘‘(A) The information described in subpara12 graphs (A) through (C) and (N) through (Q) of 

13 paragraph (4). 

14 ‘‘(B) An explanation of the treatment of the 

15 loan and private education loans in bankruptcy. 

16 ‘‘(C) Information on the annual and aggre17 gate loan limits. 

18 ‘‘(D) Information on the annual percentage 

19 rate of the loan. 

20 ‘‘(E) The option of the borrower to pay the 

21 interest on the loan while the loan is in 

22 deferment. 

23 ‘‘(F) For a first-time borrower of a loan or 

24 a borrower of a loan under this title who owes 

25 no principal or interest on such loan— 


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1 ‘‘(i) a statement of the anticipated bal2 ance on the loan for which the borrower is 

3 receiving counseling under this subsection; 

4 ‘‘(ii) based on such anticipated bal5 ance, the anticipated monthly payment 

6 amount under the standard repayment 

7 plan; and 

8 ‘‘(iii) an estimate of the projected 

9 monthly payment amount under the stand10 ard repayment plan, based on the average 

11 cumulative indebtedness of other borrowers 

12 of loans made under this title on behalf of 

13 dependent students who are in the same 

14 program of study as the student on whose 

15 behalf the borrower borrowed the loan. 

16 ‘‘(G) For a borrower with an outstanding 

17 balance of principal or interest due on such 

18 loan— 

19 ‘‘(i) a statement of the amount of such 

20 outstanding balance; 

21 ‘‘(ii) based on such outstanding bal22 ance, the anticipated monthly payment 

23 amount under the standard repayment 

24 plan; and 


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1 ‘‘(iii) an estimate of the projected 

2 monthly payment amount under the stand3 ard repayment plan, based on— 

4 ‘‘(I) the outstanding balance de5 scribed in clause (i); 

6 ‘‘(II) the anticipated outstanding 

7 balance on the loan for which the bor8 rower is receiving counseling under 

9 this subsection; and 

10 ‘‘(III) a projection for any other 

11 Federal Direct PLUS Loan made on 

12 behalf of the dependent student or Fed13 eral ONE Parent Loan that the bor14 rower is reasonably expected to accept 

15 during the program of study of such 

16 student based on at least the expected 

17 increase in the cost of attendance of 

18 such program. 

19 ‘‘(H) Debt management strategies that are 

20 designed to facilitate the repayment of such in21 debtedness. 

22 ‘‘(I) An explanation that the borrower has 

23 the options to prepay each loan, pay each loan 

24 on a shorter schedule, and change repayment 

25 plans. 


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1 ‘‘(J) For each Federal Direct PLUS Loan 

2 and each Federal ONE Parent Loan for which 

3 the borrower is receiving counseling under this 

4 subsection, the contact information for the loan 

5 servicer of the loan and a link to such servicer’s 

6 Website. 

7 ‘‘(6) ANNUAL LOAN ACCEPTANCE.—Prior to mak8 ing the first disbursement of a loan made under this 

9 title (other than a Federal Direct Consolidation Loan 

10 or Federal ONE Consolidation Loan) to a borrower 

11 for an award year, an eligible institution, shall, as 

12 part of carrying out the counseling requirements of 

13 this subsection for the loan, ensure that after receiving 

14 the applicable counseling under paragraphs (2), (4), 

15 and (5) for the loan the borrower accepts the loan for 

16 such award year by— 

17 ‘‘(A) signing the master promissory note for 

18 the loan; 

19 ‘‘(B) signing and returning to the institu20 tion a separate written statement that affirma21 tively states that the borrower accepts the loan; 

22 or 

23 ‘‘(C) electronically signing an electronic 

24 version of the statement described in subpara25 graph (B). 


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1 ‘‘(7) PROHIBITION.—An institution of higher 

2 education may not counsel a borrower of a loan under 

3 this title to divorce or separate and live apart from 

4 one another for the purpose of qualifying for, or ob5 taining an increased amount of, Federal financial as6 sistance under this Act. 

7 ‘‘(8) CONSTRUCTION.—Nothing in this section 

8 shall be construed to prohibit an eligible institution 

9 from providing additional information and coun10 seling services to recipients of Federal student aid 

11 under this title.’’. 

12 (i) ONLINE COUNSELING TOOLS.—Section 485 (20 

13 U.S.C. 1092) is further amended by adding at the end the 

14 following: 

15 ‘‘(n) ONLINE COUNSELING TOOLS.— 

16 ‘‘(1) IN GENERAL.—Beginning not later than 1 

17 year after the date of enactment of the PROSPER 

18 Act, the Secretary shall maintain— 

19 ‘‘(A) an online counseling tool that provides 

20 the exit counseling required under subsection (b) 

21 and meets the applicable requirements of this 

22 subsection; and 

23 ‘‘(B) an online counseling tool that provides 

24 the annual counseling required under subsection 


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1 (l) and meets the applicable requirements of this 

2 subsection. 

3 ‘‘(2) REQUIREMENTS OF TOOLS.—In maintain4 ing the online counseling tools described in paragraph 

5 (1), the Secretary shall ensure that each such tool is— 

6 ‘‘(A) consumer tested to ensure that the tool 

7 is effective in helping individuals understand 

8 their rights and obligations with respect to bor9 rowing a loan made this title or receiving a Fed10 eral Pell Grant; 

11 ‘‘(B) understandable to students receiving 

12 Federal Pell Grants and borrowers of loans made 

13 this title; and 

14 ‘‘(C) freely available to all eligible institu15 tions. 

16 ‘‘(3) RECORD OF COUNSELING COMPLETION.— 

17 The Secretary shall— 

18 ‘‘(A) use each online counseling tool de19 scribed in paragraph (1) to keep a record of 

20 which individuals have received counseling using 

21 the tool, and notify the applicable institutions of 

22 the individual’s completion of such counseling; 

23 ‘‘(B) in the case of a borrower who receives 

24 annual counseling for a loan made under this 

25 title using the tool described in paragraph 


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1 (1)(B), notify the borrower by when the borrower 

2 should accept, in a manner described in sub3 section (l)(6), the loan for which the borrower 

4 has received such counseling; and 

5 ‘‘(C) in the case of a borrower described in 

6 subsection (b)(1)(B) at an institution that uses 

7 the online counseling tool described in paragraph 

8 (1)(A) of this subsection, the Secretary shall at9 tempt to provide the information described in 

10 subsection (b)(1)(A) to the borrower through such 

11 tool.’’. 

12 (j) PREVENTING HAZING ON CAMPUS.—Section 485 

13 (20 U.S.C. 1092) is further amended by adding at the end 

14 the following: 

15 ‘‘(o) PREVENTING HAZING ON CAMPUS.— 

16 ‘‘(1) SENSE OF CONGRESS.—It is the Sense of 

17 Congress that— 

18 ‘‘(A) institutions of higher education should 

19 have clear policies that prohibit unsafe practices, 

20 such as hazing, on campus; 

21 ‘‘(B) institutions of higher education should 

22 ensure each student organization understands 

23 what is considered an unsafe practice; 

24 ‘‘(C) student organizations on campus 

25 should ensure their policies and activities do not 


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1 endanger students safety or cause harm to stu2 dents; 

3 ‘‘(D) administrators and faculty should take 

4 seriously any threats or acts of harm to students 

5 through activities organized by student organiza6 tions and act quickly to prevent any potential 

7 harm to students by these groups; 

8 ‘‘(E) institutions of higher education should 

9 ensure law enforcement has access to investigate 

10 any crimes committed by student organizations 

11 without obstruction from the students, student 

12 organization, administrators, or faculty; and 

13 ‘‘(F) hazing is a dangerous practice and 

14 should not be allowed on any campus. 

15 ‘‘(2) DISCLOSURE OF POLICIES.—Each institu16 tion of higher education participating in any pro17 gram under this title shall ensure that— 

18 ‘‘(A) all policies and required procedures re19 lated to hazing are clearly posted for students, 

20 faculty, and administrators; and 

21 ‘‘(B) all student organizations are aware 

22 of— 

23 ‘‘(i) the policies described in subpara24 graph (A), including all prohibited activi25 ties; and 


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1 ‘‘(ii) the dangers of hazing. 

2 ‘‘(3) HAZING DEFINED.—In this subsection, the 

3 term ‘hazing’ means any intentional, knowing, or 

4 reckless act committed by a student, or a former stu5 dent, of an institution of higher education, whether 

6 individually or with other persons, against another 

7 student, that— 

8 ‘‘(A) was committed in connection with an 

9 initiation into, an affiliation with, or the main10 tenance of membership in, any organization that 

11 is affiliated with such institution of higher edu12 cation; and 

13 ‘‘(B)(i) contributes to a substantial risk of 

14 physical injury, mental harm, or personal deg15 radation; or 

16 ‘‘(ii) causes physical injury, mental harm 

17 or personal degradation.’’. 

18 SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGI19 BILITY. 

20 Section 485E (20 U.S.C. 1092f) is amended— 

21 (1) in subsection (b)— 

22 (A) in paragraph (2)— 

23 (i) strike ‘‘The Secretary,’’ and insert 

24 ‘‘To improve the financial and economic lit25 eracy of students and parents of students in 


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1 order to make informed decisions with re2 spect to financing postsecondary education, 

3 the Secretary,’’; 

4 (ii) by striking ‘‘junior year’’ and in5 serting ‘‘sophomore year’’; 

6 (iii) by striking ‘‘The Secretary shall 

7 ensure that’’ and inserting ‘‘The Secretary 

8 shall— 

9 ‘‘(A) ensure that’’; and 

10 (iv) by adding at the end the following: 

11 ‘‘(B) create an online platform— 

12 ‘‘(i) for States, institutions of higher 

13 education, other organizations involved in 

14 college access and student financial aid, sec15 ondary schools, and programs under this 

16 title that serve secondary school students to 

17 share best practices on disseminating infor18 mation under this section; and 

19 ‘‘(ii) on which the Secretary shall an20 nually— 

21 ‘‘(I) summarize such best prac22 tices; and 

23 ‘‘(II) describe the notification and 

24 dissemination activities carried out 

25 under this section.’’. 


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1 (B) in paragraph (4)— 

2 (i) in the first sentence— 

3 (I) by striking ‘‘Not later than 

4 two years after the date of enactment 

5 of the Higher Education Opportunity 

6 Act, the’’ and inserting ‘‘The’’; and 

7 (II) by inserting ‘‘continue to’’ be8 fore ‘‘implement’’; and 

9 (ii) in the second sentence, by striking 

10 ‘‘the Internet’’ and inserting ‘‘the Internet, 

11 including through social media’’; and 

12 (2) by adding at the end the following: 

13 ‘‘ (c) ONLINE ESTIMATOR TOOL.— 

14 ‘‘(1) IN GENERAL.—Not later than 1 year after 

15 the date of enactment of the PROSPER Act, the Sec16 retary, in consultation with States, institutions of 

17 higher education, and other individuals with experi18 ence or expertise in student financial assistance ap19 plication processes, shall develop an early estimator 

20 tool to be available online and through a mobile ap21 plication, which— 

22 ‘‘(A) allows an individual to— 

23 ‘‘(i) enter basic financial and other rel24 evant information; and 


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1 ‘‘(ii) on the basis of such information, 

2 receive non-binding estimates of potential 

3 Federal grant, loan, or work study assist4 ance under this title for which a student 

5 may be eligible upon completion of an ap6 plication form under section 483(a); 

7 ‘‘(B) with respect to each institution of 

8 higher education that participates in a program 

9 under this title selected by an individual for 

10 purposes of the estimator tool, provides the indi11 vidual with the net price (as defined in section 

12 132) for the income category described in para13 graph (2) that is determined on the basis of the 

14 information under subparagraph (A)(i) of this 

15 paragraph entered by the individual; 

16 ‘‘(C) includes a clear and conspicuous dis17 claimer that the amounts calculated using the es18 timator tool are estimates based on limited fi19 nancial information, and that— 

20 ‘‘(i) each such estimate— 

21 ‘‘(I) in the case of an estimate 

22 under subparagraph (A), is only an es23 timate and does not represent a final 

24 determination, or actual award, of fi25 nancial assistance under this title; 


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1 ‘‘(II) in the case of an estimate 

2 under subparagraph (B), is only an es3 timate and not a guarantee of the ac4 tual amount that a student may be 

5 charged; 

6 ‘‘(III) shall not be binding on the 

7 Secretary or an institution of higher 

8 education; and 

9 ‘‘(IV) may change; and 

10 ‘‘(ii) a student must complete an ap11 plication form under section 483(a) in 

12 order to be eligible for, and receive, an ac13 tual financial aid award that includes Fed14 eral grant, loan, or work study assistance 

15 under this title; and 

16 ‘‘(D) includes a clear and conspicuous ex17 planation of the differences between a grant and 

18 a loan, and that an individual will be required 

19 to repay any loan borrowed by the individual. 

20 ‘‘(2) INCOME CATEGORIES.—The income cat21 egories for purposes of paragraph (1)(B) are as fol22 lows: 

23 ‘‘(A) $0 to $30,000. 

24 ‘‘(B) $30,001 to $48,000. 

25 ‘‘(C) $48,001 to $75,000. 


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1 ‘‘(D) $75,001 to $110,000. 

2 ‘‘(E) $110,001 to $150,000. 

3 ‘‘(F) Over $150,000. 

4 ‘‘(3) CONSUMER TESTING.—In developing and 

5 maintaining the estimator tool described in para6 graph (1), the Secretary shall conduct consumer test7 ing with appropriate persons, including current and 

8 prospective college students, family members of such 

9 students, and other individuals with expertise in stu10 dent financial assistance application processes and 

11 college access, to ensure that such tool is easily under12 standable by students and families and effective in 

13 communicating early aid eligibility. 

14 ‘‘(4) DATA STORAGE PROHIBITED.—In carrying 

15 out this subsection, the Secretary shall not keep, store, 

16 or warehouse any data inputted by individuals ac17 cessing the tool described in paragraph (1). 

18 ‘‘(d) PELL TABLE.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall develop, 

20 and annually update at the beginning of each award 

21 year, the following electronic tables to be utilized in 

22 carrying out this section and containing the informa23 tion described in paragraph (2) of this subsection: 

24 ‘‘(A) An electronic table for dependent stu25 dents. 


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1 ‘‘(B) An electronic table for independent 

2 students with dependents other than a spouse. 

3 ‘‘(C) An electronic table for independent 

4 students without dependents other than a spouse. 

5 ‘‘(2) INFORMATION.—Each electronic table under 

6 paragraph (1), with respect to the category of students 

7 to which the table applies for the most recently com8 pleted award year for which information is available, 

9 and disaggregated in accordance with paragraph (3), 

10 shall contain the following information: 

11 ‘‘(A) The percentage of undergraduate stu12 dents attending an institution of higher edu13 cation on a full-time, full-academic year basis 

14 who file the financial aid form prescribed under 

15 section 483 for the award year and received, for 

16 their first academic year during such award 

17 year (and not for any additional payment peri18 ods after such first academic year), the following: 

19 ‘‘(i) A Federal Pell Grant equal to the 

20 maximum amount of a Federal Pell Grant 

21 award determined under section 401(b)(2) 

22 for such award year. 

23 ‘‘(ii) A Federal Pell Grant in an 

24 amount that is— 


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1 ‘‘(I) less than the maximum 

2 amount described in clause (i); and 

3 ‘‘(II) not less than 3/4 of such 

4 maximum amount for such award 

5 year. 

6 ‘‘(iii) A Federal Pell Grant in an 

7 amount that is— 

8 ‘‘(I) less than 3/4 of such max9 imum amount; and 

‘‘(II) not less than 1 10 ⁄2 of such 

11 maximum amount for such award 

12 year. 

13 ‘‘(iv) A Federal Pell Grant in an 

14 amount that is— 

‘‘(I) less than 1 15 ⁄2 of such max16 imum amount; and 

17 ‘‘(II) not less than the minimum 

18 Federal Pell Grant amount determined 

19 under section 401(b)(4) for such award 

20 year. 

21 ‘‘(B) The dollar amounts equal to— 

22 ‘‘(i) the maximum amount of a Fed23 eral Pell Grant award determined under 

24 section 401(b)(2) for an award year; 

25 ‘‘(ii) 3/4 of such maximum amount; 


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‘‘(iii) 1 1 ⁄2 of such maximum amount; 

2 and 

3 ‘‘(iv) the minimum Federal Pell Grant 

4 amount determined under section 401(b)(4) 

5 for such award year. 

6 ‘‘(C) A clear and conspicuous notice that— 

7 ‘‘(i) the Federal Pell Grant amounts 

8 listed in subparagraph (B) are for a pre9 vious award year, and such amounts and 

10 the requirements for awarding such 

11 amounts may be different for succeeding 

12 award years; and 

13 ‘‘(ii) the Federal Pell Grant amount 

14 for which a student may be eligible will be 

15 determined based on a number of factors, 

16 including enrollment status, once the stu17 dent completes an application form under 

18 section 483(a). 

19 ‘‘(D) A link to the early estimator tool de20 scribed in subsection (c) of this section, which in21 cludes an explanation that an individual may 

22 estimate a student’s potential Federal aid eligi23 bility under this title by accessing the estimator 

24 on the individual’s mobile phone or online. 


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1 ‘‘(3) INCOME CATEGORIES.—The information 

2 provided under paragraph (2)(A) shall be 

3 disaggregated by the following income categories: 

4 ‘‘(A) Less than $5,000. 

5 ‘‘(B) $5,000 to $9,999. 

6 ‘‘(C) $10,000 to $19,999. 

7 ‘‘(D) $20,000 to $29,999. 

8 ‘‘(E) $30,000 to $39,999. 

9 ‘‘(F) $40,000 to $49,999. 

10 ‘‘(G) $50,000 to $59,999. 

11 ‘‘(H) Greater than $59,999. 

12 ‘‘(e) LIMITATION.—The Secretary may not require a 

13 State to participate in the activities or disseminate the ma14 terials described in this section.’’. 

15 SEC. 490. DISTANCE EDUCATION DEMONSTRATION PRO16 GRAMS. 

17 Section 486 (20 U.S.C. 1093(b)) is repealed. 

18 SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREE19 MENTS. 

20 (a) PROGRAM PARTICIPATION AGREEMENTS.—Section 

21 487(a) (20 U.S.C. 1094(a)) is amended in the matter before 

22 paragraph (1) by striking ‘‘, except with respect to a pro23 gram under subpart 4 of part A’’. 

24 (b) PERKINS CONFORMING CHANGES.—Section 

25 487(a)(5) (20 U.S.C. 1094(a)(5)) is amended by striking 


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1 ‘‘and, in the case of an institution participating in a pro2 gram under part B or part E, to holders of loans made 

3 to the institution’s students under such parts’’. 

4 (c) CERTIFICATIONS TO LENDERS.—Section 487(a) 

5 (20 U.S.C. 1094(a)) is amended by striking paragraph (6). 

6 (d) STATE GRANT ASSISTANCE.—Section 487(a)(9) 

7 (20 U.S.C. 1094(a)(9)) is amended by striking ‘‘in a pro8 gram under part B or D’’ and inserting ‘‘in a loan program 

9 under this title’’. 

10 (e) OPIOID MISUSE AND SUBSTANCE ABUSE PREVEN11 TION PROGRAM.—Section 487(a)(10) (20 U.S.C. 

12 1094(a)(10)) is amended by inserting ‘‘under section 118’’ 

13 after ‘‘drug abuse prevention program’’. 

14 (f) REPAYMENT SUCCESS PLAN.—Section 487(a)(14) 

15 (20 U.S.C. 1094(a)(14)) is amended— 

16 (1) by striking ‘‘under part B or D’’ both places 

17 it appears and inserting ‘‘a loan program under this 

18 title’’; 

19 (2) by striking ‘‘Default Management Plan’’ both 

20 places it appears and inserting ‘‘Repayment Success 

21 Plan’’; and 

22 (3) in subparagraph (C), by striking ‘‘a cohort 

23 default rate in excess of 10 percent’’ both places it ap24 pears and inserting ‘‘any program with a loan repay25 ment rate less than 65 percent’’. 


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1 (g) COMMISSIONS TO THIRD-PARTY ENTITIES.—Sec2 tion 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended— 

3 (1) by striking ‘‘The institution’’ and inserting 

4 ‘‘(A) Except as provided in subparagraph (B), the in5 stitution’’; and 

6 (2) by adding at the end the following new sub7 paragraph: 

8 ‘‘(B) An institution described in section 101 

9 may provide payment, based on— 

10 ‘‘(i) the amount of tuition generated by the 

11 institution from student enrollment, to a third12 party entity that provides a set of services to the 

13 institution that includes student recruitment 

14 services, regardless of whether the third-party en15 tity is affiliated with an institution that pro16 vides educational services other than the institu17 tion providing such payment, if— 

18 ‘‘(I) the third-party entity is not affili19 ated with the institution providing such 

20 payment; 

21 ‘‘(II) the third-party entity does not 

22 make compensation payments to its employ23 ees that would be prohibited under subpara24 graph (A) if such payments were made by 

25 the institution; 


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1 ‘‘(III) the set of services provided to the 

2 institution by the third-party entity include 

3 services in addition to student recruitment 

4 services, and the institution does not pay 

5 the third-party entity solely or separately 

6 for student recruitment services provided by 

7 the third-party entity; and 

8 ‘‘(IV) any student recruitment infor9 mation available to the third-party entity, 

10 including personally identifiable informa11 tion, will not be used by, shared with, or 

12 sold to any other person or entity, including 

13 any institution that is affiliated with the 

14 third-party entity, unless written consent is 

15 provided by the student; and 

16 ‘‘(ii) students successfully completing their 

17 educational programs, to persons who were en18 gaged in recruiting such students, but solely to 

19 the extent that such payments— 

20 ‘‘(I) are obligated to be paid, and are 

21 actually paid, only after each student upon 

22 whom such payments are based has success23 fully completed his or her educational pro24 gram; and 


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1 ‘‘(II) are paid only to employees of the 

2 institution or its parent company, and not 

3 to any other person or outside entity.’’. 

4 (h) CLARIFICATION OF PROOF OF AUTHORITY TO OP5 ERATE WITHIN A STATE.—Section 487(a)(21) (20 U.S.C. 

6 1094(a)(21)) is amended by striking ‘‘within a State’’ and 

7 inserting ‘‘within a State in which it maintains a physical 

8 location’’. 

9 (i) DISTRIBUTION OF VOTER REGISTRATION FORMS.— 

10 Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is amended to 

11 read as follows: 

12 ‘‘(23) The institution, if located in a State to 

13 which section 4(b) of the National Voter Registration 

14 Act of 1993 (42 U.S.C. 1973gg–2(b)) does not apply, 

15 will make a good faith effort to distribute, including 

16 through electronic transmission, voter registration 

17 forms to students enrolled and physically in attend18 ance at the institution.’’. 

19 (j) PROHIBITING COPYRIGHT INFRINGEMENT.—Sec20 tion 487(a)(29) (20 U.S.C. 1094(a)(29)) is amended to read 

21 as follows: 

22 ‘‘(29) The institution will have a policy prohib23 iting copyright infringement.’’. 


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1 (k) MODIFICATIONS TO PREFERRED LENDER LIST RE2 QUIREMENTS.—Section 487(h)(1) (20 U.S.C. 1094(h)(1)) is 

3 amended— 

4 (1) in subparagraph (A)— 

5 (A) in clause (i), by inserting ‘‘and’’ after 

6 the semicolon; 

7 (B) by striking clause (ii); and 

8 (C) by redesignating clause (iii) as clause 

9 (ii); 

10 (2) in subparagraph (D), by inserting ‘‘and’’ 

11 after the semicolon; 

12 (3) in subparagraph (E), by striking ‘‘; and’’ 

13 and inserting a period; and 

14 (4) by striking subparagraphs (C) and (F) and 

15 redesignating subparagraphs (D) and (E) as subpara16 graphs (C) and (D), respectively. 

17 (l) ELIMINATION OF NON-TITLE IV REVENUE RE18 QUIREMENT.—Section 487 (20 U.S.C. 1094), is further 

19 amended— 

20 (1) in subsection (a), by striking paragraph 

21 (24); 

22 (2) by striking subsection (d); and 

23 (3) by redesignating subsections (e) through (j) 

24 as subsections (d) through (i), respectively. 


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1 (m) CONFORMING AMENDMENTS.—The Higher Edu2 cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 

3 (1) in section 487(a) (20 U.S.C. 1094(a)), as 

4 amended by this section— 

5 (A) by redesignating paragraphs (7) 

6 through (23), as paragraphs (6) through (22), re7 spectively; and 

8 (C) by redesignating paragraphs (25) 

9 through (29) as paragraphs (23) through (27), 

10 respectively; 

11 (2) in section 487(c)(1)(A)(iii) (20 U.S.C. 

12 1094(c)(1)(A)(iii)), by striking ‘‘section 102(a)(1)(C)’’ 

13 and inserting ‘‘section 102(a)(1)’’; and 

14 (3) in section 487(h)(4) (20 U.S.C. 1094(h)(4)), 

15 as redesignated by subsection (l)(3), by striking ‘‘sec16 tion 102’’ and inserting ‘‘section 101 or 102’’. 

17 SEC. 492. REGULATORY RELIEF AND IMPROVEMENT. 

18 Section 487A (20 U.S.C. 1094a) is amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (1), by striking ‘‘The Sec21 retary is authorized to’’ and inserting ‘‘The Sec22 retary shall’’; and 

23 (B) in paragraph (5), by inserting ‘‘at least 

24 once every two years’’ before the period at the 

25 end; and 


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1 (2) in subsection (b)— 

2 (A) in paragraph (2)— 

3 (i) in the paragraph heading, by in4 serting ‘‘ANNUAL’’ before ‘‘REPORT’’; and 

5 (ii) by striking the first sentence and 

6 inserting ‘‘The Secretary shall review the 

7 experience, and rigorously evaluate the ac8 tivities, of all institutions participating as 

9 experimental sites and shall, on an annual 

10 basis, submit a report based on the review 

11 and evaluation findings to the authorizing 

12 committees.’’; 

13 (B) in paragraph (3), by amending sub14 paragraph (A) to read as follows: 

15 ‘‘(A) IN GENERAL.— 

16 ‘‘(i) EXPERIMENTAL SITES.—The Sec17 retary is authorized periodically to select a 

18 limited number of institutions for voluntary 

19 participation as experimental sites to pro20 vide recommendations to the Secretary and 

21 to the Congress on the impact and effective22 ness of proposed regulations or new man23 agement initiatives. 

24 ‘‘(ii) CONGRESSIONAL NOTICE AND

25 COMMENTS REQUIRED.— 


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1 ‘‘(I) NOTICE.—Prior to announc2 ing a new experimental site and invit3 ing institutions to participate, the Sec4 retary shall provide to the authorizing 

5 committees a notice that shall in6 clude— 

7 ‘‘(aa) a description of the 

8 proposed experiment and ration9 ale for the proposed experiment; 

10 and 

11 ‘‘(bb) a list of the institu12 tional requirements the Secretary 

13 expects to waive and the legal au14 thority for such waivers. 

15 ‘‘(II) CONGRESSIONAL COM16 MENTS.—The Secretary shall not pro17 ceed with announcing a new experi18 mental site and inviting institutions to 

19 participate until 10 days after the Sec20 retary— 

21 ‘‘(aa) receives and addresses 

22 all comments from the authorizing 

23 committees; and 

24 ‘‘(bb) responds to such com25 mittees in writing with an explaVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00477 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 nation of how such comments have 

2 been addressed. 

3 ‘‘(iii) PROHIBITION.—The Secretary is 

4 not authorized to carry out clause (i) in 

5 any year in which an annual report de6 scribed in paragraph (2) relating to the 

7 previous year is not submitted to the au8 thorizing committees.’’; 

9 (C) in paragraph (4)(A), by striking ‘‘bien10 nial’’ and inserting ‘‘annual’’; and 

11 (D) by striking paragraph (1) and redesig12 nating paragraphs (2) through (4) as para13 graphs (1) through (3), respectively. 

14 SEC. 493. TRANSFER OF ALLOTMENTS. 

15 Section 488 (20 U.S.C. 1095) is amended— 

16 (1) by inserting ‘‘, as in effect on the day before 

17 the date of enactment of the PROSPER Act,’’ after 

18 ‘‘section 462’’; and 

19 (2) by inserting ‘‘, as in effect on the day before 

20 the date of enactment of the PROSPER Act,’’ after 

21 ‘‘or 462’’. 

22 SEC. 494. ADMINISTRATIVE EXPENSES. 

23 Section 489(a) (20 U.S.C. 1096(a)) is amended— 

24 (1) in the second sentence— 


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1 (A) by striking ‘‘subpart 3 of part A or part 

2 C,’’ and inserting ‘‘part C’’ ; and 

3 (B) by striking ‘‘or under part E of this 

4 title’’; and 

5 (2) in the third sentence— 

6 (A) by striking ‘‘its grants to students 

7 under subpart 3 of part A,’’; and 

8 (B) by striking ‘‘, and the principal 

9 amount of loans made during such fiscal year 

10 from its student loan fund established under part 

11 E, excluding the principal amount of any such 

12 loans which the institution has referred under 

13 section 463(a)(4)(B)’’. 

14 SEC. 494A. REPEAL OF ADVISORY COMMITTEE. 

15 Section 491 (20 U.S.C. 1098) is repealed. 

16 SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULE17 MAKING. 

18 Section 492 (20 U.S.C. 1098a) is amended— 

19 (1) by redesignating subsections (c) and (d) as 

20 subsections (f) and (g), respectively; and 

21 (2) by striking subsections (a) and (b) and in22 serting the following: 

23 ‘‘(a) IN GENERAL.—The Secretary may, in accordance 

24 with this section, issue such regulations as are reasonably 

25 necessary to ensure compliance with this title. 


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1 ‘‘(b) PUBLIC INVOLVEMENT.—The Secretary shall ob2 tain public involvement in the development of proposed reg3 ulations for this title. Before carrying out a negotiated rule4 making process as described in subsection (d) or publishing 

5 in the Federal Register proposed regulations to carry out 

6 this title, the Secretary shall obtain advice and rec7 ommendations from individuals, and representatives of 

8 groups, involved in student financial assistance programs 

9 under this title, such as students, institutions of higher edu10 cation, financial aid administrators, accrediting agencies 

11 or associations, State student grant agencies, guaranty 

12 agencies, lenders, secondary markets, loan servicers, guar13 anty agency servicers, and collection agencies. 

14 ‘‘(c) MEETINGS AND ELECTRONIC EXCHANGE.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall provide 

16 for a comprehensive discussion and exchange of infor17 mation concerning the implementation of this title 

18 through such mechanisms as regional meetings and 

19 electronic exchanges of information. Such regional 

20 meetings and electronic exchanges of information 

21 shall be public and notice of such meetings and ex22 changes shall be provided to— 

23 ‘‘(A) the authorizing committees at least 10 

24 days prior to the notice to interested stakeholders 


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1 and the public described in subparagraph (B); 

2 and 

3 ‘‘(B) interested stakeholders and the public 

4 at least 30 days prior to such meetings and ex5 changes. 

6 ‘‘(2) CONSIDERATION.—The Secretary shall take 

7 into account the information received through such 

8 mechanisms in the development of proposed regula9 tions and shall publish a summary of such informa10 tion in the Federal Register prior to beginning the ne11 gotiated rulemaking process described in subsection 

12 (d). 

13 ‘‘(d) NEGOTIATED RULEMAKING PROCESS.— 

14 ‘‘(1) NEGOTIATED RULEMAKING REQUIRED.—All 

15 regulations pertaining to this title that are promul16 gated after the date of the enactment of this para17 graph shall be subject to the negotiated rulemaking 

18 process described in this subsection (including the se19 lection of the issues to be negotiated), unless the Sec20 retary— 

21 ‘‘(A) determines that applying such a re22 quirement with respect to given regulations is 

23 impracticable, unnecessary, or contrary to the 

24 public interest (within the meaning of section 

25 553(b)(3)(B) of title 5, United States Code); 


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1 ‘‘(B) publishes the basis for such determina2 tion in the Federal Register at the same time as 

3 the proposed regulations in question are first 

4 published; and 

5 ‘‘(C) includes the basis for such determina6 tion in the congressional notice under subsection 

7 (e)(1). 

8 ‘‘(2) CONGRESSIONAL NOTICE AND COMMENTS

9 REQUIRED.— 

10 ‘‘(A) NOTICE.—The Secretary shall provide 

11 to the Committee on Education and the Work12 force of the House of Representatives and the 

13 Committee on Health, Education, Labor, and 

14 Pensions of the Senate notice of the intent estab15 lish a negotiated rulemaking committee that 

16 shall include— 

17 ‘‘(i) the need to issue regulations; 

18 ‘‘(ii) the statutory and legal authority 

19 of the Secretary to regulate the issue; 

20 ‘‘(iii) the summary of public comments 

21 described in paragraph (2) of subsection (c); 

22 ‘‘(iv) the anticipated burden, including 

23 the time, cost, and paperwork burden, the 

24 regulations will have on institutions of 


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1 higher education and other entities that 

2 may be impacted by the regulations; and 

3 ‘‘(v) any regulations that will be re4 pealed when the new regulations are issued. 

5 ‘‘(B) CONGRESSIONAL COMMENTS.—The 

6 Secretary shall not proceed with the negotiated 

7 rulemaking process— 

8 ‘‘(i) until 10 days after the Sec9 retary— 

10 ‘‘(I) receives and addresses all 

11 comments from the authorizing com12 mittees; and 

13 ‘‘(II) responds to the authorizing 

14 committees in writing with an expla15 nation of how such comments have 

16 been addressed; or 

17 ‘‘(ii) until 60 days after providing the 

18 notice required under subparagraph (A) if 

19 the Secretary has not received comments 

20 under clause (i). 

21 ‘‘(3) PROCESS.—After obtaining advice and rec22 ommendations under subsections (b) and (c), and be23 fore publishing proposed regulations, the Secretary 

24 shall— 


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1 ‘‘(A) establish a negotiated rulemaking 

2 process; 

3 ‘‘(B) select individuals to participate in 

4 such process— 

5 ‘‘(i) from among individuals or groups 

6 that provided advice and recommendations 

7 under subsections (b) and (c), including— 

8 ‘‘(I) representatives of such groups 

9 from Washington, D.C.; and 

10 ‘‘(II) other industry participants; 

11 and 

12 ‘‘(ii) with demonstrated expertise or 

13 experience in the relevant subjects under ne14 gotiation, reflecting the diversity in the in15 dustry, representing both large and small 

16 participants, as well as individuals serving 

17 local areas and national markets; 

18 ‘‘(C) prepare a draft of proposed policy op19 tions, which shall take into account comments re20 ceived from both the public and the authorizing 

21 committees, that shall be provided to the individ22 uals selected by the Secretary under subpara23 graph (B) and such authorizing committees not 

24 less than 15 days before the first meeting under 

25 such process; and 


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1 ‘‘(D) ensure that the negotiation process is 

2 conducted in a timely manner in order that the 

3 final regulations may be issued by the Secretary 

4 within the 360-day period described in section 

5 437(e) of the General Education Provisions Act 

6 (20 U.S.C. 1232(e)). 

7 ‘‘(4) AGREEMENTS AND RECORDS.— 

8 ‘‘(A) AGREEMENTS.—All published proposed 

9 regulations developed through the negotiation 

10 process under this subsection shall conform to all 

11 agreements resulting from such process unless the 

12 Secretary reopens the negotiated rulemaking 

13 process. 

14 ‘‘(B) RECORDS.—The Secretary shall ensure 

15 that a clear and reliable record is maintained of 

16 agreements reached during a negotiation process 

17 under this subsection. 

18 ‘‘(e) PROPOSED RULEMAKING.—If the Secretary deter19 mines pursuant to subsection (d)(1) that a negotiated rule20 making process is impracticable, unnecessary, or contrary 

21 to the public interest (within the meaning of section 

22 553(b)(3)(B) of title 5, United States Code), or the individ23 uals selected to participate in the process under subsection 

24 (d)(3)(B) fail to reach unanimous agreement on an issue 


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1 being negotiated, the Secretary may propose regulations 

2 subject to subsection (f). 

3 ‘‘(f) REQUIREMENTS FOR PROPOSED REGULATIONS.— 

4 Regulations proposed pursuant to subsection (e) shall meet 

5 the following procedural requirements: 

6 ‘‘(1) CONGRESSIONAL NOTICE.—Regardless of 

7 whether congressional notice was submitted under 

8 subsection (d)(2), the Secretary shall provide to the 

9 Committee on Education and the Workforce of the 

10 House of Representatives and the Committee on 

11 Health, Education, Labor, and Pensions of the Senate 

12 notice that shall include— 

13 ‘‘(A) a copy of the proposed regulations; 

14 ‘‘(B) the need to issue regulations; 

15 ‘‘(C) the statutory and legal authority of the 

16 Secretary to regulate the issue; 

17 ‘‘(D) the anticipated burden, including the 

18 time, cost, and paperwork burden, the regula19 tions will have on institutions of higher edu20 cation and other entities that may be impacted 

21 by the regulations; and 

22 ‘‘(E) any regulations that will be repealed 

23 when the new regulations are issued. 


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1 ‘‘(2) CONGRESSIONAL COMMENTS.—The Sec2 retary may not proceed with the rulemaking proc3 ess— 

4 ‘‘(A) until 10 days after the Secretary— 

5 ‘‘(i) receives and addresses all com6 ments from the authorizing committees; and 

7 ‘‘(ii) responds to the authorizing com8 mittees in writing with an explanation of 

9 how such comments have been addressed; or 

10 ‘‘(B) until 60 days after providing the no11 tice required under paragraph (1) if the Sec12 retary has not received comments under subpara13 graph (A). 

14 ‘‘(3) COMMENT AND REVIEW PERIOD.—The com15 ment and review period for the proposed regulation 

16 shall be 90 days unless an emergency requires a short17 er period, in which case such period shall be not less 

18 than 45 days and the Secretary shall— 

19 ‘‘(A) designate the proposed regulation as 

20 an emergency, with an explanation of the emer21 gency, in the notice to the Congress under para22 graph (1); 

23 ‘‘(B) publish the length of the comment and 

24 review period in such notice and in the Federal 

25 Register; and 


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1 ‘‘(C) conduct immediately thereafter re2 gional meetings to review such proposed regula3 tion before issuing any final regulation. 

4 ‘‘(4) INDEPENDENT ASSESSMENT.—No regulation 

5 shall be made final after the comment and review pe6 riod until the Secretary has published in the Federal 

7 Register an independent assessment (which shall in8 clude a representative sampling of institutions of 

9 higher education based on sector, enrollment, urban, 

10 suburban, or rural character, and other factors im11 pacted by the regulation) of— 

12 ‘‘(A) the burden, including the time, cost, 

13 and paperwork burden, the final regulation will 

14 impose on institutions and other entities that 

15 may be impacted by the regulation; 

16 ‘‘(B) an explanation of how the entities de17 scribed in subparagraph (A) may cover the cost 

18 of the burden assessed under such subparagraph; 

19 and 

20 ‘‘(C) the regulation, including a thorough 

21 assessment, based on the comments received dur22 ing the comment and review period under para23 graph (3), of whether the rule is financially, 

24 operationally, and educationally viable at the in25 stitutional level.’’. 


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1 SEC. 494C. REPORT TO CONGRESS. 

2 Section 493C (20 U.S.C. 1098e) is amended by adding 

3 at the end the following: 

4 ‘‘(f) REPORT.— 

5 ‘‘(1) IN GENERAL.—Not later than 180 days 

6 after the date of enactment of the PROSPER Act, the 

7 Secretary shall submit to the authorizing committees 

8 a report on the efforts of the Department to detect and 

9 combat fraud in the income-driven repayment plans 

10 described in paragraph (2). 

11 ‘‘(2) INCOME DRIVEN REPAYMENT PLANS DE12 FINED.—The income-driven repayment plans de13 scribed in this paragraph are the repayment plans 

14 made available under— 

15 ‘‘(A) this section; 

16 ‘‘(B) subparagraphs (D) and (E) of section 

17 455(d)(1); and 

18 ‘‘(C) section 455(e).’’. 

19 SEC. 494D. DEFERRAL OF LOAN REPAYMENT FOLLOWING 

20 ACTIVE DUTY. 

21 Section 493D(a) (20 U.S.C. 1098f) is amended, by 

22 striking ‘‘or 464(c)(2)(A)(iii)’’ and inserting 

23 ‘‘464(c)(2)(A)(iii) (as in effect on the day before the date 

24 of enactment of the PROSPER Act and pursuant to section 

25 461(a)), or 469A(a)(2)(A)(iii)’’. 


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1 SEC. 494E. CONTRACTS; MATCHING PROGRAM. 

2 (a) CONTRACTS FOR SUPPLIES AND SERVICES.— 

3 (1) IN GENERAL.—Part G of title IV (20 U.S.C. 

4 1088 et seq.), as amended by this part, is further 

5 amended by adding at the end the following: 

6 ‘‘SEC. 493E. CONTRACTS. 

7 ‘‘(a) CONTRACTS FOR SUPPLIES AND SERVICES.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall, to the 

9 extent practicable, award contracts for origination, 

10 servicing, and collection described in subsection (b). 

11 In awarding such contracts, the Secretary shall en12 sure that such services and supplies are provided at 

13 competitive prices. 

14 ‘‘(2) ENTITIES.—The entities with which the 

15 Secretary may enter into contracts shall include enti16 ties qualified to provide such services and supplies 

17 and will comply with the procedures applicable to the 

18 award of such contracts. In the case of awarding con19 tracts for the origination, servicing, and collection of 

20 loans under parts D and E, the Secretary shall enter 

21 into contracts with entities that have extensive and 

22 relevant experience and demonstrated effectiveness. 

23 The entities with which the Secretary may enter into 

24 such contracts may include, where practicable, agen25 cies with agreements with the Secretary under sec26 tions 428(b) and (c), if such agencies meet the qualiVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00490 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 fications as determined by the Secretary under this 

2 subsection and if those agencies have such experience 

3 and demonstrated effectiveness. In awarding contracts 

4 to such State agencies, the Secretary shall, to the ex5 tent practicable and consistent with the purposes of 

6 parts D and E, give consideration to State agencies 

7 with a history of high quality performance to perform 

8 services for institutions of higher education within 

9 their State. 

10 ‘‘(3) ALLOCATIONS.— 

11 ‘‘(A) IN GENERAL.—Except as provided in 

12 subparagraph (B), the Secretary shall allocate 

13 new borrower loan accounts to entities awarded 

14 a contract under this section on the basis of— 

15 ‘‘(i) the performance of each such enti16 ty compared to other such entities per17 forming similar work using common per18 formance metrics (which may take into ac19 count, as appropriate, portfolio risk factors, 

20 including a borrower’s time in repayment, 

21 category of institution of higher education 

22 attended, and completion of an educational 

23 program), as determined by the Secretary; 

24 and 


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1 ‘‘(ii) the capacity of each such entity 

2 compared to other such entities performing 

3 similar work to service new and existing 

4 borrower loan accounts. 

5 ‘‘(B) FEDERAL ONE CONSOLIDATION

6 LOANS.—Any borrower who receives a Federal 

7 ONE Consolidation Loan may select the entity 

8 awarded a contract under this section to service 

9 such loan. 

10 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 

11 section shall be construed as a limitation of the au12 thority of any State agency to enter into an agree13 ment for the purposes of this section as a member of 

14 a consortium of State agencies. 

15 ‘‘(b) CONTRACTS FOR ORIGINATION, SERVICING, AND

16 DATA SYSTEMS.—The Secretary may enter into contracts 

17 for— 

18 ‘‘(1) the servicing and collection of loans made or 

19 purchased under part D or E; 

20 ‘‘(2) the establishment and operation of 1 or 

21 more data systems for the maintenance of records on 

22 all loans made or purchased under part D or E; and 

23 ‘‘(3) such other aspects of the direct student loan 

24 program under part D or E necessary to ensure the 

25 successful operation of the program. 


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1 ‘‘(c) COMMON PERFORMANCE MANUAL.— 

2 ‘‘(1) CONSULTATION.—Not later than 180 days 

3 after the date of enactment of the PROSPER Act and 

4 biannually thereafter, the Secretary shall consult (in 

5 writing and in person) with entities awarded con6 tracts for loan servicing under section 456 (as in ef7 fect on the day before the date of enactment of the 

8 PROSPER Act) and this section, to the extent prac9 ticable, to develop and update as necessary, a guid10 ance manual for entities awarded contracts for loan 

11 servicing under this section that provides such entities 

12 with best practices to ensure borrowers receive ade13 quate and consistent service from such entities. 

14 ‘‘(2) PROVISION OF MANUAL.—The Secretary 

15 shall provide the most recent guidance manual devel16 oped and updated under paragraph (1) to each entity 

17 awarded a contract for loan serving under this sec18 tion. 

19 ‘‘(3) ANNUAL REPORT.—The Secretary shall pro20 vide to the authorizing committees a report, on a an21 nual basis, detailing the consultation required under 

22 paragraph (1). 

23 ‘‘(d) FEDERAL PREEMPTION.— 

24 ‘‘(1) IN GENERAL.—Covered activities shall not 

25 be subject to any law or other requirement of any 


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1 State or political subdivision of a State with respect 

2 to— 

3 ‘‘(A) disclosure requirements; 

4 ‘‘(B) requirements or restrictions on the 

5 content, time, quantity, or frequency of commu6 nications with borrowers, endorsers, or references 

7 with respect to such loans; or 

8 ‘‘(C) any other requirement relating to the 

9 servicing or collection of a loan made under this 

10 title. 

11 ‘‘(2) SERVICING AND COLLECTION.—The require12 ments of this section with respect to any covered ac13 tivity shall preempt any law or other requirement of 

14 a State or political subdivision of a State to the ex15 tent that such law or other requirement would, in the 

16 absence of this subsection, apply to such covered activ17 ity. 

18 ‘‘(3) STATE LICENSES.—No qualified entity en19 gaged in a covered activity shall be required to obtain 

20 a license from, or pay a licensing fee or other assess21 ment to, any State or political subdivision of a State 

22 relating to such covered activity. 

23 ‘‘(4) DEFINITIONS.—For purposes of this section: 


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1 ‘‘(A) The term ‘covered activity’ means any 

2 of the following activities, as carried out by a 

3 qualified entity: 

4 ‘‘(i) Origination of a loan made under 

5 this title. 

6 ‘‘(ii) Servicing of a loan made under 

7 this title. 

8 ‘‘(iii) Collection of a loan made under 

9 this title. 

10 ‘‘(iv) Any other activity related to the 

11 activities described in clauses (i) through 

12 (iii). 

13 ‘‘(B) The term ‘qualified entity’ means an 

14 organization, other than an institution of higher 

15 education— 

16 ‘‘(i) that is responsible for the servicing 

17 or collection of a loan made under this title; 

18 ‘‘(ii) that has agreement with the Sec19 retary under subsections (a) and (b) of sec20 tion 428; or 

21 ‘‘(iii) that is under contract with an 

22 entity described in clause (i) or clause (ii) 

23 to support such entity’s responsibilities 

24 under this title. 


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1 ‘‘(5) LIMITATION.—This subsection shall not 

2 have any legal effect on any other preemption provi3 sion under Federal law with respect to this title.’’. 

4 (2) CONFORMING AMENDMENT.—Section 456 (20 

5 U.S.C. 1087f) is repealed. 

6 (b) MATCHING PROGRAM.—Part G of title IV (20 

7 U.S.C. 1088 et seq.), as amended by subsection (a), is fur8 ther amended by adding at the end the following: 

9 ‘‘SEC. 493F. MATCHING PROGRAM. 

10 ‘‘(a) IN GENERAL.—The Secretary of Education and 

11 the Secretary of Veterans Affairs shall carry out a computer 

12 matching program under which the Secretary of Education 

13 identifies, on at least a quarterly basis, borrowers— 

14 ‘‘(1) who have been assigned a disability rating 

15 of 100 percent (or a combination of ratings equaling 

16 100 percent or more) by the Secretary of Veterans Af17 fairs for a service-connected disability (as defined in 

18 section 101 of title 38, United States Code); or 

19 ‘‘(2) who have been determined by the Secretary 

20 of Veterans Affairs to be unemployable due to a serv21 ice-connected condition, as described in section 

22 437(a)(2). 

23 ‘‘(b) BORROWER NOTIFICATION.—With respect to each 

24 borrower who is identified under subsection (a), the SecVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00496 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 retary shall, as soon as practicable after such identifica2 tion— 

3 ‘‘(1) notify the borrower of the borrower’s eligi4 bility for loan discharge under section 437(a); and 

5 ‘‘(2) provide the borrower with simple instruc6 tions on how to apply for such loan discharge, includ7 ing an explanation that the borrower shall not be re8 quired to provide any documentation of the bor9 rower’s disability rating to receive such discharge. 

10 ‘‘(c) DATA COLLECTION AND REPORT TO CONGRESS.— 

11 ‘‘(1) IN GENERAL.—The Secretary shall annually 

12 collect and submit to the Committees on Education 

13 and the Workforce and Veterans’ Affairs of the House 

14 of Representatives and the Committees on Health, 

15 Education, Labor, and Pensions and Veterans Affairs 

16 of the Senate, data about borrowers applying for and 

17 receiving loan discharges under section 437(a), which 

18 shall be disaggregated in the manner described in 

19 paragraph (2) and include the following: 

20 ‘‘(A) The number of applications received 

21 under section 437(a). 

22 ‘‘(B) The number of such applications that 

23 were approved. 

24 ‘‘(C) The number of loan discharges that 

25 were completed under section 437(a). 


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1 ‘‘(2) DISAGGREGATION.—The data collected 

2 under paragraph (1) shall be disaggregated— 

3 ‘‘(A) by borrowers who applied under this 

4 section for loan discharges under section 437(a); 

5 ‘‘(B) by borrowers who received loan dis6 charges as a result of applying for such dis7 charges under this section; 

8 ‘‘(C) by borrowers who applied for loan dis9 charges under section 437(a)(2); and 

10 ‘‘(D) by borrowers who received loan dis11 charges as a result of applying for such dis12 charges under section 437(a)(2). 

13 ‘‘(d) NOTIFICATION TO BORROWERS.—The Secretary 

14 shall notify each borrower whose liability on a loan has been 

15 discharged under section 437(a) that the liability on the 

16 loan has been so discharged.’’. 

17 PART H—PROGRAM INTEGRITY 

18 SEC. 495. REPEAL OF AND PROHIBITION ON STATE AU19 THORIZATION REGULATIONS. 

20 (a) REGULATIONS REPEALED.—The following regula21 tions relating to State authorization (including any supple22 ments or revisions to such regulations) are repealed and 

23 shall have no force or effect: 


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1 (1) The final regulations published by the De2 partment of Education in the Federal Register on Oc3 tober 29, 2010 (75 Fed. Reg. 66832 et seq.). 

4 (2) The final regulations published by the De5 partment of Education in the Federal Register on De6 cember 19, 2016 (81 Fed. Reg. 92232 et seq). 

7 (b) PROHIBITION ON STATE AUTHORIZATION REGULA8 TIONS.—The Secretary of Education shall not, on or after 

9 the date of enactment of this Act, promulgate or enforce any 

10 regulation or rule with respect to the State authorization 

11 for institutions of higher education to operate within a 

12 State for any purpose under the Higher Education Act of 

13 1965 (20 U.S.C. 1001 et seq.). 

14 (c) INSTITUTIONAL RESPONSIBILITY; TREATMENT OF

15 RELIGIOUS INSTITUTIONS.—Section 495 (20 U.S.C. 1099a) 

16 is amended by striking subsection (b) and inserting the fol17 lowing: 

18 ‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each institu19 tion of higher education shall provide evidence to the Sec20 retary that the institution has authority to operate within 

21 each State in which it maintains a physical location at 

22 the time the institution is certified under subpart 3. 

23 ‘‘(c) TREATMENT OF RELIGIOUS INSTITUTIONS.—An 

24 institution shall be treated as legally authorized to operate 


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1 educational programs beyond secondary education in a 

2 State under section 101(a)(2) if the institution is— 

3 ‘‘(1) recognized as a religious institution by the 

4 State; and 

5 ‘‘(2) because of the institution’s status as a reli6 gious institution, exempt from any provision of State 

7 law that requires institutions to be authorized by the 

8 State to operate educational programs beyond sec9 ondary education.’’. 

10 SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR AS11 SOCIATION. 

12 Section 496 (20 U.S.C. 1099b) is amended— 

13 (1) in subsection (j), by striking ‘‘section 102’’ 

14 and inserting ‘‘section 101’’; 

15 (2) in subsection (a)— 

16 (A) in paragraph (2), by amending sub17 paragraph (A) to read as follows: 

18 ‘‘(A) for the purpose of participation in 

19 programs under this Act or other programs ad20 ministered by the Department of Education or 

21 other Federal agencies, has a voluntary member22 ship of institutions of higher education or other 

23 entities and has as a principal purpose the ac24 crediting of institutions of higher education or 

25 programs;’’; 


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1 (B) in paragraph (3)— 

2 (i) in subparagraph (A)— 

3 (I) by striking ‘‘subparagraph 

4 (A)(i)’’ and inserting ‘‘subparagraph 

5 (A) or (C)’’; 

6 (II) by striking ‘‘separate’’ and 

7 inserting ‘‘separately incorporated’’; 

8 and 

9 (III) by adding ‘‘or’’ at the end; 

10 (ii) by striking ‘‘or’’ at the end of sub11 paragraph (B); and 

12 (iii) by striking subparagraph (C); 

13 (C) in paragraph (4)— 

14 (i) in subparagraph (A)— 

15 (I) by inserting ‘‘as defined by the 

16 institution’’ after ‘‘stated mission of 

17 the institution of higher education’’; 

18 (II) by striking ‘‘, including dis19 tance education or correspondence 

20 courses or programs,’’; and 

21 (III) by striking ‘‘and’’ at the 

22 end; 

23 (ii) by striking subparagraph (B) and 

24 inserting the following: 


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1 ‘‘(B) such agency or association dem2 onstrates the ability to review, evaluate, and as3 sess the quality of any instruction delivery model 

4 or method such agency or association has or 

5 seeks to include within its scope of recognition, 

6 without giving preference to or differentially 

7 treating a particular instruction delivery model 

8 or method offered by an institution of higher 

9 education or program except that, in a case in 

10 which the instruction delivery model allows for 

11 the separation of the student from the instruc12 tor— 

13 ‘‘(i) the agency or association requires 

14 the institution to have processes through 

15 which the institution establishes that the 

16 student who registers in a course or pro17 gram is the same student who participates 

18 in, including, to the extent practicable, test19 ing or other assessment, and completes the 

20 program and receives the academic credit; 

21 and 

22 ‘‘(ii) the agency or association requires 

23 that any process used by an institution to 

24 comply with the requirement under clause 

25 (i) does not infringe upon student privacy 


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1 and is implemented in a manner that is 

2 minimally burdensome to the student; and 

3 ‘‘(C) if such an agency or association evalu4 ates or assesses the quality of competency-based 

5 education programs, the agency’s or association’s 

6 evaluation or assessment — 

7 ‘‘(i) shall address effectively the quality 

8 of an institution’s competency-based edu9 cation programs as set forth in paragraph 

10 (5), except that the agency or association is 

11 not required to have separate standards, 

12 procedures, or policies for the evaluation of 

13 competency-based education; 

14 ‘‘(ii) shall establish whether an institu15 tion has demonstrated that its program sat16 isfies the definitions in section 103(25); and 

17 ‘‘(iii) shall establish whether an insti18 tution has demonstrated that it has defined 

19 an academic year for a competency-based 

20 program in accordance with section 

21 481(a)(3).’’; 

22 (D) by amending paragraph (5) to read as 

23 follows: 

24 ‘‘(5) the standards for accreditation of the agen25 cy or association assess the institution’s success with 


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1 respect to student learning and educational outcomes 

2 in relation to the institution’s mission, which may 

3 include different standards for different institutions 

4 or programs, except that the standards shall include 

5 consideration of student learning and educational 

6 outcomes in relation to expected measures of student 

7 learning and educational outcomes, which at the 

8 agency’s or association’s discretion are established— 

9 ‘‘(A) by the agency or association; or 

10 ‘‘(B) by the institution or program, at the 

11 institution or program level, as the case may be, 

12 if the institution or program— 

13 ‘‘(i) defines expected student learning 

14 goals and educational outcomes; 

15 ‘‘(ii) measures and evaluates student 

16 learning, educational outcomes, and, if ap17 propriate, other outcomes of the students 

18 who complete their program of study; 

19 ‘‘(iii) uses information about student 

20 learning, educational outcomes, and, if ap21 propriate, other outcomes, to improve the 

22 institution or program; and 

23 ‘‘(iv) makes such information available 

24 to appropriate constituencies;’’; and 


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1 (E) in paragraph (8), by striking ‘‘, upon 

2 request,’’; 

3 (3) in subsection (b)— 

4 (A) in the subsection heading, by striking 

5 ‘‘SEPARATE’’ and inserting ‘‘SEPARATELY IN6 CORPORATED’’; 

7 (B) in the matter preceding paragraph (1), 

8 by striking ‘‘separate’’ and inserting ‘‘separately 

9 incorporated’’; 

10 (C) in paragraph (2), by inserting ‘‘who 

11 shall represent business’’ after ‘‘one such public 

12 member’’; and 

13 (D) in paragraph (4), by inserting before 

14 the period at the end ‘‘and is maintained sepa15 rately from any such entity or organization’’; 

16 (4) in subsection (c)— 

17 (A) in paragraph (1)— 

18 (i) by inserting ‘‘(which may vary 

19 based on institutional risk consistent with 

20 policies promulgated by the agency or asso21 ciation to determine such risk and interval 

22 frequency as allowed under subsection (p))’’ 

23 after ‘‘intervals’’; and 


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1 (ii) by striking ‘‘distance education’’ 

2 and inserting ‘‘competency-based edu3 cation’’; 

4 (B) by striking paragraph (5) and redesig5 nating paragraphs (2), (3), and (4) as para6 graphs (3), (4), and (5), respectively; 

7 (C) by inserting after paragraph (1), the 

8 following: 

9 ‘‘(2) develops a mechanism to identify institu10 tions or programs accredited by the agency or asso11 ciation that may be experiencing difficulties accom12 plishing their missions with respect to the student 

13 learning and educational outcome goals established 

14 under subsection (a)(5) and— 

15 ‘‘(A) as appropriate, uses information such 

16 as student loan default or repayment rates, re17 tention or graduation rates, evidence of student 

18 learning, financial data, and other indicators to 

19 identify such institutions; 

20 ‘‘(B) not less than annually, evaluates the 

21 extent to which those identified institutions or 

22 programs continue to be in compliance with the 

23 agency or association’s standards; and 

24 ‘‘(C) as appropriate, requires the institution 

25 or program to address deficiencies and ensure 


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1 that any plan to address and remedy deficiencies 

2 is successfully implemented.’’; 

3 (D) in paragraph (4)(A), as so redesig4 nated, by striking ‘‘487(f)’’ and inserting 

5 ‘‘487(e)’’; 

6 (E) by amending paragraph (5), as so re7 designated, to read as follows: 

8 ‘‘(5) establishes and applies or maintains poli9 cies which ensure that any substantive change to the 

10 educational mission, program, or programs of an in11 stitution after the agency or association has granted 

12 the institution accreditation or preaccreditation sta13 tus does not adversely affect the capacity of the insti14 tution to continue to meet the agency’s or associa15 tion’s standards for such accreditation or 

16 preaccreditation status, which shall include policies 

17 that— 

18 ‘‘(A) require the institution to obtain the 

19 agency’s or association’s approval of the sub20 stantive change before the agency or association 

21 includes the change in the scope of the institu22 tion’s accreditation or preaccreditation status; 

23 and 

24 ‘‘(B) define substantive change to include, 

25 at a minimum— 


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1 ‘‘(i) any change in the established mis2 sion or objectives of the institution; 

3 ‘‘(ii) any change in the legal status, 

4 form of control, or ownership of the institu5 tion; 

6 ‘‘(iii) the addition of courses, programs 

7 of instruction, training, or study, or creden8 tials or degrees that represent a significant 

9 departure from the courses, programs, or 

10 credentials or degrees that were offered at 

11 time the agency or association last evalu12 ated the institution; or 

13 ‘‘(iv) the entering into a contract 

14 under which an institution or organization 

15 not certified to participate programs under 

16 title IV provides a portion of an accredited 

17 institution’s educational program that is 

18 greater than 25 percent;’’; 

19 (F) in paragraph (7)— 

20 (i) in the matter preceding subpara21 graph (A), by inserting ‘‘, on the agency’s 

22 or association’s website,’’ after ‘‘public’’; 

23 (ii) in subparagraph (C), by inserting 

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1 tion was taken or such placement was 

2 made’’; 

3 (G) in paragraph (8), by striking ‘‘and’’ at 

4 the end; 

5 (H) in paragraph (9), by striking the pe6 riod at the end and inserting a semicolon; 

7 (I) by adding at the end the following: 

8 ‘‘(10) makes publicly available, on the agency or 

9 association’s website, a list of the institutions of high10 er education accredited by such agency or association, 

11 which includes, with respect to each institution on the 

12 list–— 

13 ‘‘(A) the year accreditation was granted; 

14 ‘‘(B) the most recent date of a comprehen15 sive evaluation of the institution under para16 graph (1); and 

17 ‘‘(C) the anticipated date of the next such 

18 evaluation; and 

19 ‘‘(11) confirms, as a part of the agency’s or asso20 ciation’s review for accreditation or reaccreditation, 

21 that the institution’s website includes consumer infor22 mation described section paragraphs (1) and (2) of 

23 section 132(d).’’; 

24 (5) in subsection (e)— 


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1 (A) by striking ‘‘The Secretary’’ and insert2 ing the following: 

3 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the 

4 Secretary’’; and 

5 (B) by adding at the end the following: 

6 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

7 apply in the case of an institution described in sub8 section (j).’’. 

9 (6) by striking subsection (h) and inserting the 

10 following: 

11 ‘‘(h) CHANGE OF ACCREDITING AGENCY OR ASSOCIA12 TION.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall not rec14 ognize the accreditation of any otherwise eligible in15 stitution of higher education if the institution is in 

16 the process of changing its accrediting agency or asso17 ciation and is subject to one or more of the following 

18 actions, unless the eligible institution submits to the 

19 Secretary materials demonstrating a reasonable cause 

20 for changing the accrediting agency or association: 

21 ‘‘(A) A pending or final action brought by 

22 a State agency to suspend, revoke, withdraw, or 

23 terminate the institution’s legal authority to pro24 vide postsecondary education in the State. 


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1 ‘‘(B) A decision by a recognized accrediting 

2 agency or association to deny accreditation or 

3 preaccreditation to the institution. 

4 ‘‘(C) A pending or final action brought by 

5 a recognized accrediting agency or association to 

6 suspend, revoke, withdraw, or terminate the in7 stitution’s accreditation or preaccreditation. 

8 ‘‘(D) Probation or an equivalent status im9 posed on the institution by a recognized accred10 iting agency or association. 

11 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 

12 subsection shall be construed to restrict the ability of 

13 an institution of higher education not subject to an 

14 action described in paragraph (1) and otherwise in 

15 good standing to change accrediting agencies or asso16 ciations without the approval of the Secretary as long 

17 as the institution notifies the Secretary of the 

18 change.’’; 

19 (7) by striking subsection (k) and inserting the 

20 following: 

21 ‘‘(k) RELIGIOUS INSTITUTION RULE.— 

22 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

23 (j), the Secretary shall allow an institution that has 

24 had its accreditation withdrawn, revoked, or other25 wise terminated, or has voluntarily withdrawn from 


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1 an accreditation agency, to remain certified as an in2 stitution of higher education under section 101 and 

3 subpart 3 of this part for a period sufficient to allow 

4 such institution to obtain alternative accreditation, if 

5 the Secretary determines that the withdrawal, revoca6 tion, or termination— 

7 ‘‘(A) is related to the religious mission or 

8 affiliation of the institution; and 

9 ‘‘(B) is not related to the accreditation cri10 teria provided for in this section. 

11 ‘‘(2) REQUIREMENTS.—For purposes of this sec12 tion the following shall apply: 

13 ‘‘(A) The religious mission of an institution 

14 may be reflected in the institution’s religious te15 nets, beliefs, or teachings, and any policies or de16 cisions related to such tenets, beliefs, or teachings 

17 (including any policies or decisions concerning 

18 housing, employment, curriculum, self-govern19 ance, or student admission, continuing enroll20 ment, or graduation). 

21 ‘‘(B) An agency or association’s standard 

22 fails to respect an institution’s religious mission 

23 when the institution determines that the stand24 ard induces, pressures, or coerces the institution 


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1 to act contrary to, or to refrain from acting in 

2 support of, any aspect of its religious mission. 

3 ‘‘(3) ADMINISTRATIVE COMPLAINT FOR FAILURE

4 TO RESPECT RELIGIOUS MISSION.— 

5 ‘‘(A) IN GENERAL.— 

6 ‘‘(i) INSTITUTION.—If an institution of 

7 higher education believes that an adverse 

8 action of an accrediting agency or associa9 tion fails to respect the institution’s reli10 gious mission in violation of subsection 

11 (a)(4)(A), the institution— 

12 ‘‘(I) may file a complaint with 

13 the Secretary to require the agency or 

14 association to withdraw the adverse ac15 tion; and 

16 ‘‘(II) prior to filing such com17 plaint, shall notify the Secretary and 

18 the agency or association of an intent 

19 to file such complaint not later than 30 

20 days after— 

21 ‘‘(aa) receiving the adverse 

22 action from the agency or associa23 tion; or 

24 ‘‘(bb) determining that dis25 cussions with or the processes of 


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1 the agency or association to rem2 edy the failure to respect the reli3 gious mission of the institution 

4 will fail to result in the with5 drawal of the adverse action by 

6 the agency or association. 

7 ‘‘(ii) ACCREDITING AGENCY OR ASSO8 CIATION.—Upon notification of an intent to 

9 file a complaint and through the duration 

10 of the complaint process under this para11 graph, the Secretary and the accrediting 

12 agency or association shall treat the accred13 itation status of the institution of higher 

14 education as if the adverse action for which 

15 the institution is filing the complaint had 

16 not been taken. 

17 ‘‘(B) COMPLAINT.—Not later than 45 days 

18 after providing notice of the intent to file a com19 plaint, the institution shall file the complaint 

20 with the Secretary (and provide a copy to the 

21 accrediting agency or association), which shall 

22 include— 

23 ‘‘(i) a description of the adverse action; 


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1 ‘‘(ii) how the adverse action fails to re2 spect the institution’s religious mission in 

3 violation of subsection (a)(4)(A); and 

4 ‘‘(iii) any other information the insti5 tution determines relevant to the complaint. 

6 ‘‘(C) RESPONSE.— 

7 ‘‘(i) IN GENERAL.—The accrediting 

8 agency or association shall have 30 days 

9 from the date the complaint is filed with the 

10 Secretary to file with the Secretary (and 

11 provide a copy to the institution) a response 

12 to the complaint, which response shall in13 clude— 

14 ‘‘(I) how the adverse action is 

15 based on a violation of the agency or 

16 association’s standards for accredita17 tion; and 

18 ‘‘(II) how the adverse action does 

19 not fail to respect the religious mission 

20 of the institution and is in compliance 

21 with subsection (a)(4)(A). 

22 ‘‘(ii) BURDEN OF PROOF.— 

23 ‘‘(I) IN GENERAL.—The accred24 iting agency or association shall bear 

25 the burden of proving that the agency 


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1 or association has not taken the ad2 verse action as a result of the institu3 tion’s religious mission, and that the 

4 action does not fail to respect the insti5 tution’s religious mission in violation 

6 of subsection (a)(4)(A), by showing 

7 that the adverse action does not impact 

8 the aspect of the religious claimed to be 

9 affected in the complaint. 

10 ‘‘(II) INSUFFICIENT PROOF.—Any 

11 evidence that the adverse action results 

12 from the application of a neutral and 

13 generally applicable rule shall be insuf14 ficient to prove that the action does not 

15 fail to respect an institution’s religious 

16 mission. 

17 ‘‘(D) ADDITIONAL INSTITUTION RE18 SPONSE.—The institution shall have 15 days 

19 from the date on which the agency or associa20 tion’s response is filed with the Secretary to— 

21 ‘‘(i) file with the Secretary (and pro22 vide a copy to the agency or association) a 

23 response to any issues raised in the response 

24 of the agency or association; or 


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1 ‘‘(ii) inform the Secretary and the 

2 agency or association that the institution 

3 elects to waive the right to respond to the 

4 response of the agency or association. 

5 ‘‘(E) SECRETARIAL ACTION.— 

6 ‘‘(i) IN GENERAL.—Not later than 15 

7 days of receipt of the institution’s response 

8 under subparagraph (D) or notification 

9 that the institution elects not to file a re10 sponse under such subparagraph— 

11 ‘‘(I) the Secretary shall review the 

12 materials to determine if the accred13 iting agency or association has met its 

14 burden of proof under subparagraph 

15 (C)(ii)(I); or 

16 ‘‘(II) in a case in which the Sec17 retary fails to conduct such review— 

18 ‘‘(aa) the Secretary shall be 

19 deemed as determining that the 

20 adverse action fails to respect the 

21 religious mission of the institu22 tion; and 

23 ‘‘(bb) the accrediting agency 

24 or association shall be required to 

25 reverse the action immediately 


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1 and take no further action with 

2 respect to such adverse action. 

3 ‘‘(ii) REVIEW OF COMPLAINT.—In re4 viewing the complaint under clause (i)(I)— 

5 ‘‘(I) the Secretary shall consider 

6 the institution to be correct in the as7 sertion that the adverse action fails to 

8 respect the institution’s religious mis9 sion and shall apply the burden of 

10 proof described in subparagraph 

11 (C)(ii)(I) with respect to the accred12 iting agency or association; and 

13 ‘‘(II) if the Secretary determines 

14 that the accrediting agency or associa15 tion fails to meet such burden of 

16 proof— 

17 ‘‘(aa) the Secretary shall no18 tify the institution and the agency 

19 or association that the agency or 

20 association is not in compliance 

21 with subsection (a)(4)(A), and 

22 that such agency or association 

23 shall carry out the requirements of 

24 item (bb) to be in compliance sub25 section (a)(4)(A); and 


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1 ‘‘(bb) the agency or associa2 tion shall reverse the adverse ac3 tion immediately and take no fur4 ther action with respect to such 

5 adverse action. 

6 ‘‘(iii) FINAL DEPARTMENTAL AC7 TION.—The Secretary’s determination under 

8 this subparagraph shall be the final action 

9 of the Department on the complaint. 

10 ‘‘(F) RULE OF CONSTRUCTION.—Nothing in 

11 this paragraph shall prohibit— 

12 ‘‘(i) an accrediting agency or associa13 tion from taking an adverse action against 

14 an institution of higher education for a fail15 ure to comply with the agency or associa16 tion’s standards of accreditation as long as 

17 such standards are in compliance with sub18 section (a)(4)(A) and any other applicable 

19 requirements of this section; or 

20 ‘‘(ii) an institution of higher education 

21 from exercising any other rights to address 

22 concerns with respect to an accrediting 

23 agency or association or the accreditation 

24 process of an accrediting agency or associa25 tion. 


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1 ‘‘(G) GUIDANCE.— 

2 ‘‘(i) IN GENERAL.—The Secretary may 

3 only issue guidance under this paragraph 

4 that explains or clarifies the process for pro5 viding notice of an intent to file a com6 plaint or for filing a complaint under this 

7 paragraph. 

8 ‘‘(ii) CLARIFICATION.—The Secretary 

9 may not issue guidance, or otherwise deter10 mine or suggest, when discussions to remedy 

11 the failure by an accrediting agency or as12 sociation to respect the religious mission of 

13 an institution of higher education referred 

14 to in subparagraph (A)(i)(II)(bb) have 

15 failed or will fail.’’; 

16 (8) in subsection (n)(3), by striking ‘‘distance 

17 education courses or programs’’ each place it appears 

18 and inserting ‘‘competency-based education pro19 grams’’ ; 

20 (9) in subsection (o), by inserting before the pe21 riod at the end the following: ‘‘, or with respect to the 

22 policies and procedures of an accreditation agency or 

23 association described in paragraph (2) or (5) of sub24 section (c) or how the agency or association carries 

25 out such policies and procedures’’; 


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1 (10) by striking subsections (p) and (q); and 

2 (11) by adding at the end the following: 

3 ‘‘(p) RISK-BASED OR DIFFERENTIATED REVIEW PROC4 ESSES OR PROCEDURES.— 

5 ‘‘(1) IN GENERAL.—Notwithstanding any other 

6 provision of law (including subsection (a)(4)(A)), an 

7 accrediting agency or association may establish, with 

8 the involvement of its membership, risk-based or dif9 ferentiated review processes or procedures for assess10 ing compliance with the accrediting agency or asso11 ciation’s standards, including policies related to sub12 stantive change and award of accreditation statuses, 

13 for institutions of higher education or programs that 

14 have demonstrated exceptional past performance with 

15 respect to meeting the accrediting agency or associa16 tion’s standards. 

17 ‘‘(2) PROHIBITION.—Risk-based or differentiated 

18 review processes or procedures shall not discriminate 

19 against, or otherwise preclude, institutions of higher 

20 education based on institutional sector or category, 

21 including an institution of higher education’s tax sta22 tus. 

23 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 

24 subsection shall be construed to permit the Secretary 

25 to establish any criterion that specifies, defines, or 


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1 prescribes an accrediting agency or association’s risk2 based or differentiated review process or procedure. 

3 ‘‘(q) WAIVER.—The Secretary shall establish a process 

4 through which an agency or association may seek to have 

5 a requirement of this subpart waived, if such agency or as6 sociation— 

7 ‘‘(1) demonstrates that such waiver is necessary 

8 to enable an institution of higher education or pro9 gram accredited by the agency or association to im10 plement innovative practices intended to— 

11 ‘‘(A) reduce administrative burdens to the 

12 institution or program without creating costs for 

13 the taxpayer; or 

14 ‘‘(B) improve the delivery of services to stu15 dents, improve instruction or learning outcomes, 

16 or otherwise benefit students; and 

17 ‘‘(2) describes the terms and conditions that will 

18 be placed upon the program or institution to ensure 

19 academic integrity and quality.’’. 

20 SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES. 

21 (a) ELIGIBILITY AND CERTIFICATION PROCEDURES.— 

22 Section 498 (20 U.S.C. 1099c) is amended— 

23 (1) in subsection (a)— 

24 (A) by striking ‘‘For purposes of’’ and in25 serting the following: 


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1 ‘‘(1) IN GENERAL.—For purposes of’’; 

2 (B) by inserting ‘‘, subject to paragraph 

3 (2),’’ after ‘‘determine’’; and 

4 (C) by adding at the end the following: 

5 ‘‘(2) SPECIAL RULE.—The determination of 

6 whether an institution of higher education is legally 

7 authorized to operate in a State under section 

8 101(a)(2) shall be based solely on that State’s laws.’’; 

9 (2) in subsection (b)(5), by striking ‘‘B or D’’ 

10 and inserting ‘‘E’’; 

11 (3) in subsection (c)— 

12 (A) by redesignating paragraphs (4), (5), 

13 and (6) as paragraphs (6), (7), and (8), respec14 tively; 

15 (B) by striking the subsection designation 

16 and all that follows through the end of para17 graph (3) and inserting the following: 

18 ‘‘(c) FINANCIAL RESPONSIBILITY STANDARDS.—(1) 

19 The Secretary shall determine whether an institution has 

20 the financial responsibility required by this title in accord21 ance with paragraph (2). 

22 ‘‘(2) An institution shall be determined to be finan23 cially responsible by the Secretary, as required by this title, 

24 if the institution is able to provide the services described 

25 in its official publications and statements, is able to provide 


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1 the administrative resources necessary to comply with the 

2 requirements of this title, and meets one of the following 

3 conditions: 

4 ‘‘(A) Such institution has its liabilities backed 

5 by the full faith and credit of a State, or its equiva6 lent. 

7 ‘‘(B) Such institution has a bond credit quality 

8 rating of investment grade or higher from a recog9 nized credit rating agency. 

10 ‘‘(C) Such institution has expendable net assets 

11 equal to not less than one-half of the annual potential 

12 liabilities of such institution to the Secretary for 

13 funds under this title, including loan obligations dis14 charged pursuant to section 437, and to students for 

15 refunds of institutional charges, including funds 

16 under this title, as calculated by an independent cer17 tified public accountant in accordance with generally 

18 accepted auditing standards. 

19 ‘‘(D) Such institution establishes, with the sup20 port of a financial statement audited by an inde21 pendent certified public accountant in accordance 

22 with generally accepted auditing standards, that the 

23 institution has sufficient resources to ensure against 

24 the precipitous closure of the institution, including 

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1 cluding refunds of institutional charges and repay2 ments to the Secretary for liabilities and debts in3 curred in programs administered by the Secretary). 

4 ‘‘(E) Such institution has met criteria, pre5 scribed by the Secretary by regulation in accordance 

6 with paragraph (3), that— 

7 ‘‘(i) establish ratios that demonstrate finan8 cial responsibility in accordance with generally 

9 accepted auditing standards as described in 

10 paragraph (7); 

11 ‘‘(ii) incorporate the procedures described in 

12 paragraph (4); 

13 ‘‘(iii) establish consequences for failure to 

14 meet the criteria described in paragraph (5); and 

15 ‘‘(iv) take into account any differences in 

16 generally accepted accounting principles, and the 

17 financial statements required thereunder, that 

18 are applicable to for-profit, public, and nonprofit 

19 institutions. 

20 ‘‘(3) The criteria prescribed pursuant to paragraph 

21 (2)(E) shall provide that the Secretary shall— 

22 ‘‘(A) not later than 6 months after an institution 

23 that is subject to the requirements of paragraph 

24 (2)(E) has submitted its annual financial statement, 


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1 provide to such institution a notification of its pre2 liminary score under such paragraph; 

3 ‘‘(B) provide to each such institution a descrip4 tion of the method used, and complete copies of all the 

5 calculations performed, to determine the institution’s 

6 score, if such institution makes a request for such in7 formation within 45 days after receiving the notice 

8 under subparagraph (A); 

9 ‘‘(C) within 60 days of receipt by an institution 

10 of the information described in subparagraph (B)— 

11 ‘‘(i) allow the institution to correct or cure 

12 an administrative, accounting, or recordkeeping 

13 error if the error is not part of a pattern of er14 rors and there is no evidence of fraud or mis15 conduct related to the error; 

16 ‘‘(ii) if the institution demonstrates that the 

17 Secretary has made errors in its determination 

18 of the initial score or has used non-standard ac19 counting practices in reaching its determination, 

20 notify the institution that its composite score has 

21 been corrected; and 

22 ‘‘(iii) take into consideration any subse23 quent change in the institution’s overall fiscal 

24 health that would raise the institution’s score; 


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1 ‘‘(D) maintain and preserve at all times the con2 fidentiality of any review until such score is deter3 mined to be final; and 

4 ‘‘(E) make a determination regarding whether 

5 the institution has met the standards of financial re6 sponsibility based on an audited and certified finan7 cial statement of the institution as described in para8 graph (7). 

9 ‘‘(4) If the Secretary determines, after conducting an 

10 initial review, that the institution has not met at least one 

11 of the conditions described in subparagraphs (A) through 

12 (E) of paragraph (2) but has otherwise met the require13 ments of such paragraph— 

14 ‘‘(A) the Secretary shall request information re15 lating to such conditions for any affiliated or parent 

16 organization, company, or foundation owning or 

17 owned by the institution; and 

18 ‘‘(B) if such additional information dem19 onstrates that an affiliated or parent organization, 

20 company, or foundation owning or owned by the in21 stitution meets at least one of the conditions describe 

22 in subparagraphs (A) through (E) of paragraph (2), 

23 the institution shall be determined to be financially 

24 responsible as required by this title. 


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1 ‘‘(5) The Secretary shall establish policies and proce2 dures to address an institution’s failure to meet the criteria 

3 of paragraph (2) which shall include policies and proce4 dures that— 

5 ‘‘(A) require an institution that fails to meet the 

6 criteria for three consecutive years to provide to the 

7 Secretary a financial plan; 

8 ‘‘(B) provide for additional oversight and cash 

9 monitoring restrictions, as appropriate; 

10 ‘‘(C) allow an institution to submit to the Sec11 retary third-party financial guarantees that the Sec12 retary determines are reasonable, such as performance 

13 bonds or letters of credit payable to the Secretary, ex14 cept that an institution may not be required to obtain 

15 a letter of credit in order to be deemed financially re16 sponsible unless— 

17 ‘‘(i) the institution has been deemed not to 

18 be a going concern, as determined by an inde19 pendent certified public accountant in accord20 ance with generally accepted auditing standards; 

21 ‘‘(ii) the institution is determined by the 

22 Secretary to be at risk of precipitous closure 

23 when the full financial resources of the institu24 tion, including the value of the institution’s ex25 pendable endowment, are considered; or 


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1 ‘‘(iii) the institution is determined by the 

2 Secretary to be at risk of not meeting all of its 

3 financial obligations, including refunds of insti4 tutional charges and repayments to the Secretary 

5 for liabilities and debts incurred in programs 

6 administered by the Secretary; and 

7 ‘‘(D) provide for the removal of all requirements 

8 related to the institution’s failure to meet the criteria 

9 once the criteria are met.’’; and 

10 (C) in paragraph (7), as so redesignated, by 

11 striking ‘‘paragraphs (2) and (3)(C)’’ and insert12 ing ‘‘paragraph (2)’’; 

13 (4) in subsection (g)(3)— 

14 (A) by striking ‘‘section 102(a)(1)(C)’’ and 

15 inserting ‘‘section 102(a)(1)’’; and 

16 (B) by striking ‘‘part B’’ and inserting 

17 ‘‘part D or E’’; 

18 (5) in subsection (h)(2), by striking ‘‘18’’ and in19 serting ‘‘36’’; 

20 (6) in subsection (i)(1), by striking ‘‘section 102 

21 (other than the requirements in subsections (b)(5) and 

22 (c)(3))’’ and inserting ‘‘sections 101 (other than the 

23 requirements in subsections (b)(1)(A) and (b)(2)) and 

24 102’’; 


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1 (7) in subsection (j)(1), by striking ‘‘meet the re2 quirements of sections 102(b)(1)(E) and 102(c)(1)(C)’’ 

3 and inserting ‘‘meet the requirements to be considered 

4 an institution of higher education under sections 

5 101(b)(1)(A) and 101(b)(2)’’; and 

6 (8) in subsection (k)— 

7 (A) in paragraph (1), by striking ‘‘487(f)’’ 

8 and inserting ‘‘487(e)’’; and 

9 (B) in paragraph (2)(A), by striking ‘‘meet 

10 the requirements of sections 102(b)(1)(E) and 

11 102(c)(1)(C)’’ and inserting ‘‘meet the require12 ments to be considered an institution of higher 

13 education under sections 101(b)(1)(A) and 

14 101(b)(2)’’. 

15 (b) PROGRAM REVIEW AND DATA.—Section 498A (20 

16 U.S.C. 1099c–1) is amended— 

17 (1) in subsection (a)(2)— 

18 (A) by striking ‘‘part B of’’ both places it 

19 appears; 

20 (B) in subparagraph (A), by inserting be21 fore the semicolon at the end the following: ‘‘, or 

22 after the transition period described in section 

23 481B(e)(3), institutions in which 25 percent or 

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1 payment rate (defined in section 481B(c)) for the 

2 most recent fiscal year of less than 50 percent’’; 

3 (C) in subparagraph (B), by inserting be4 fore the semicolon at the end the following: ‘‘, ex5 cept that this subparagraph shall not apply after 

6 the transition period described in section 

7 481B(e)(3)’’; and 

8 (D) in subparagraph (C)— 

9 (i) by inserting ‘‘, Federal ONE Loan 

10 volume’’ after ‘‘Stafford/Ford Loan vol11 ume’’; and 

12 (ii) by inserting ‘‘, Federal ONE Loan 

13 program’’ after ‘‘Stafford/Ford Loan pro14 gram’’; 

15 (2) in subsection (b)— 

16 (A) by redesignating paragraphs (3) 

17 through (8) as paragraphs (4) through (9), re18 spectively; 

19 (B) by inserting after paragraph (2) the fol20 lowing new paragraph: 

21 ‘‘(3) as practicable, provide a written expla22 nation to the institution of higher education detailing 

23 the Secretary’s reasons for initiating the program re24 view which, if applicable, shall include references to 

25 specific criteria under subsection (a)(2);’’; and 


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1 (C) in paragraph (9), as so redesignated— 

2 (i) by striking ‘‘paragraphs (6) and 

3 (7)’’ and inserting ‘‘paragraphs (7) and 

4 (8)’’; and 

5 (ii) by striking ‘‘paragraph (5)’’ and 

6 inserting ‘‘paragraph (6)’’; and 

7 (3) by adding at the end the following new sub8 section: 

9 ‘‘(f) TIME LIMIT ON PROGRAM REVIEW ACTIVITIES.— 

10 In conducting, responding to, and concluding program re11 view activities, the Secretary shall— 

12 ‘‘(1) provide to the institution the initial report 

13 finding not later than 90 days after concluding an 

14 initial site visit; 

15 ‘‘(2) upon each receipt of an institution’s re16 sponse during a program review inquiry, respond in 

17 a substantive manner within 90 days; 

18 ‘‘(3) upon each receipt of an institution’s written 

19 response to a draft final program review report, pro20 vide the final program review report and accom21 panying enforcement actions, if any, within 90 days; 

22 and 

23 ‘‘(4) conclude the entire program review process 

24 not later than 2 years after the initiation of a pro25 gram review, unless the Secretary determines that 


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1 such a review is sufficiently complex and cannot rea2 sonably be concluded before the expiration of such 2- 

3 year period, in which case the Secretary shall 

4 promptly notify the institution of the reasons for such 

5 delay and provide an anticipated date for conclusion 

6 of the review.’’. 

7 (c) REVIEW OF REGULATIONS.—Section 498B(b) (20 

8 U.S.C. 1099c–2(b)) is amended by striking ‘‘section 

9 102(a)(1)(C)’’ and inserting ‘‘section 102(a)(1)’’. 

10 TITLE V—DEVELOPING 

11 INSTITUTIONS 

12 SEC. 501. HISPANIC-SERVING INSTITUTIONS. 

13 Part A of title V (20 U.S.C. 1101 et seq.) is amended— 

14 (1) in section 502(a)— 

15 (A) in paragraph (1), by striking ‘‘institu16 tion for instruction’’ and inserting ‘‘institution 

17 of higher education for instruction’’; 

18 (B) in paragraph (2)(A)— 

19 (i) by redesignating clauses (v) and 

20 (vi) as clauses (vi) and (v), respectively; 

21 (ii) in clause (v) (as so redesignated), 

22 by inserting ‘‘(as defined in section 

23 103(20)(A))’’ after ‘‘State’’; and 

24 (iii) in clause (vi) (as so redesignated), 

25 by striking ‘‘and’’ at the end; and 


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1 (C) in paragraph (2)— 

2 (i) by striking the period at the end of 

3 subparagraph (B) and inserting ‘‘; and’’; 

4 and 

5 (ii) by inserting after subparagraph 

6 (B) the following: 

7 ‘‘(C) except as provided in section 522(b), 

8 an institution that has a completion rate of at 

9 least 25 percent that is calculated by— 

10 ‘‘(i) counting a student as completed if 

11 that student graduated within 150 percent 

12 of the normal time for completion; or 

13 ‘‘(ii) counting a student as completed 

14 if that student enrolled into another pro15 gram at an institution for which the pre16 vious program provided substantial prepa17 ration within 150 percent of normal time 

18 for completion.’’; 

19 (2) in section 503— 

20 (A) in subsection (b)— 

21 (i) in paragraph (5), by striking 

22 ‘‘counseling, and’’ and inserting ‘‘coun23 seling, advising, and’ ’’ 


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1 (ii) in paragraph (7), by striking 

2 ‘‘funds management’’ and inserting ‘‘funds 

3 and administrative management’’; 

4 (iii) in paragraph (11), by striking 

5 ‘‘Creating’’ and all that follows through 

6 ‘‘technologies,’’ and inserting ‘‘Innovative 

7 learning models and creating or improving 

8 facilities for Internet or other innovative 

9 technologies,’’; and 

10 (iv) by redesignating paragraph (16) 

11 as paragraph (20) and inserting after para12 graph (15) the following: 

13 ‘‘(16) The development, coordination, implemen14 tation, or improvement of career and technical edu15 cation programs (as defined in section 135 of the Carl 

16 D. Perkins Career and Technical Education Act of 

17 2006 (20 U.S.C. 2355)). 

18 ‘‘(17) Alignment and integration of career and 

19 technical education programs with programs of study 

20 leading to a bachelor’s degree, graduate degree, or 

21 professional degree. 

22 ‘‘(18) Developing or expanding access to dual or 

23 concurrent enrollment programs and early college 

24 high school programs. 


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1 ‘‘(19) Pay for success initiatives that improve 

2 time to completion and increase graduation rates.’’; 

3 and 

4 (B) in subsection (c), by adding at the end 

5 the following: 

6 ‘‘(4) SCHOLARSHIP.—An institution that uses 

7 grant funds provided under this part to establish or 

8 increase an endowment fund may use the income 

9 from such endowment fund to provide scholarships to 

10 students for the purposes of attending such institu11 tion, subject to the limitation in section 

12 331(c)(3)(B)(i).’’; 

13 (3) in section 504, by striking subsection (a) and 

14 inserting the following: 

15 ‘‘(a) AWARD PERIOD.—The Secretary may award a 

16 grant to a Hispanic-serving institution under this part for 

17 a period of 5 years. Any funds awarded under this part 

18 that are not expended or used, before the date that is 10 

19 years after the date on which the grant was awarded, for 

20 the purposes for which the funds were paid shall be repaid 

21 to the Treasury.’’; and 

22 (4) in section 505, by striking ‘‘this title’’ each 

23 place such term appears and inserting ‘‘this part’’. 


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1 SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNI2 TIES FOR HISPANIC AMERICANS. 

3 Part B of title V (20 U.S.C. 1102 et seq.) is amended— 

4 (1) in section 513— 

5 (A) by striking paragraph (1) and inserting 

6 the following: 

7 ‘‘(1) The activities described in (1) through (4), 

8 (11), and (19) of section 503(b).’’; 

9 (B) by striking paragraphs (2) and (3); and 

10 (C) by redesignating paragraphs (4) 

11 through (8) as paragraphs (2) through (6), re12 spectively; and 

13 (D) in paragraph (4) (as so redesignated), 

14 by striking ‘‘Creating’’ and all that follows 

15 through ‘‘technologies,’’ and inserting ‘‘Innova16 tive learning models and creating or improving 

17 facilities for Internet or other innovative tech18 nologies,’’; and 

19 (2) in section 514— 

20 (A) by striking subsection (b) and inserting 

21 the following: 

22 ‘‘(b) DURATION.—The Secretary may award a grant 

23 to a Hispanic-serving institution under this part for a pe24 riod of 5 years. Any funds awarded under this part that 

25 are not expended or used for the purposes for which the 

26 funds were paid within 10 years following the date on 


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1 which the grant was awarded shall be repaid to the Treas2 ury.’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(d) SPECIAL RULE.—No Hispanic-serving institu5 tion that is eligible for and receives funds under this part 

6 may receive funds under part A or B of title III during 

7 the period for which funds under this part are awarded.’’. 

8 SEC. 503. GENERAL PROVISIONS. 

9 Part C of title V (20 U.S.C. 1103 et seq.) is amended— 

10 (1) in section 521(c)(7)— 

11 (A) by striking subparagraph (C); 

12 (B) by redesignating subparagraphs (D) 

13 and (E) as subparagraphs (C) and (D), respec14 tively; and 

15 (C) in subparagraph (D), as so redesig16 nated, by striking ‘‘subparagraph (D)’’ and in17 serting ‘‘subparagraph (C)’’; 

18 (2) in section 522(b)— 

19 (A) in the subsection heading, by inserting 

20 ‘‘; COMPLETION RATES’’ after ‘‘EXPENDITURES’’; 

21 (B) in paragraph (1), by inserting ‘‘or 

22 502(a)(2)(C)’’ after ‘‘502(a)(2)(A)(ii)’’; and 

23 (C) in paragraph (2)— 


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1 (i) in the paragraph heading, by in2 serting ‘‘AND COMPLETION RATES’’ after 

3 ‘‘EXPENDITURES’’; 

4 (ii) in the matter preceding subpara5 graph (A), by inserting ‘‘or 502(a)(2)(C)’’ 

6 after ‘‘502(a)(2)(A)(ii)’’; and 

7 (iii) in subparagraph (A), by inserting 

8 ‘‘or section 502(a)(2)(C)’’ after 

9 ‘‘502(a)(2)(A)’’; 

10 (3) in section 524(c), by striking ‘‘section 505’’ 

11 and inserting ‘‘section 504’’; and 

12 (4) in section 528— 

13 (A) in subsection (a), by striking ‘‘parts A 

14 and C’’ and all that follows through the period 

15 at the end and inserting ‘‘parts A and C, 

16 $107,795,000 for each of fiscal years 2019 

17 through 2024.’’; and 

18 (B) in subsection (b), by striking ‘‘part B’’ 

19 and all that follows through the period at the end 

20 and inserting ‘‘part B, $9,671,000 for each of fis21 cal years 2019 through 2024.’’. 


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1 TITLE VI—INTERNATIONAL 

2 EDUCATION PROGRAMS 

3 SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD4 IES. 

5 (a) GRADUATE AND UNDERGRADUATE LANGUAGE AND

6 AREA CENTERS AND PROGRAMS.—Section 602 (20 U.S.C. 

7 1122) is amended— 

8 (1) in subsection (a)(4)(F), by inserting ‘‘(C),’’ 

9 after ‘‘(B),’’; and 

10 (2) in subsection (e)— 

11 (A) by redesignating paragraphs (1) and 

12 (2) as subparagraphs (A) and (B), respectively, 

13 and realigning such subparagraphs so as to be 

14 indented 4 ems from the left margin; 

15 (B) by striking ‘‘(e) APPLICATION.—Each 

16 institution’’ and inserting the following: 

17 ‘‘(e) APPLICATION.— 

18 ‘‘(1) SUBMISSION; CONTENTS.—Each institu19 tion’’; and 

20 (C) by adding at the end the following new 

21 paragraph: 

22 ‘‘(2) APPROVAL.—The Secretary may approve an 

23 application for a grant if an institution, in its appli24 cation, provides adequate assurances that it will com25 ply with paragraph (1)(A). The Secretary shall use 


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1 the requirement of paragraph (1)(A) as part of the 

2 application evaluation, review, and approval process 

3 when determining grant recipients for initial funding 

4 and continuation awards.’’. 

5 (b) DISCONTINUATION OF CERTAIN PROGRAMS.—Part 

6 A of title VI (20 U.S.C. 1121 et seq.) is amended— 

7 (1) by striking section 604; 

8 (2) by striking section 606; 

9 (3) by striking section 609; and 

10 (4) by striking section 610. 

11 (c) CONFORMING AMENDMENT.—Part A of title VI (20 

12 U.S.C. 1121 et seq.) is further amended by redesignating 

13 sections 605, 607, and 608 as sections 604, 605, and 606, 

14 respectively. 

15 SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO16 GRAMS. 

17 (a) CENTERS FOR INTERNATIONAL BUSINESS EDU18 CATION.—Section 612 (20 U.S.C. 1130–1) is amended— 

19 (1) in subsection (f)(3), by inserting ‘‘and a wide 

20 range of views’’ after ‘‘diverse perspectives’’; and 

21 (2) by adding at the end the following new sub22 section: 

23 ‘‘(g) APPROVAL.—The Secretary may approve an ap24 plication for a grant if an institution, in its application, 

25 provides adequate assurances that it will comply with subVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00541 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 section (f)(3). The Secretary shall use the requirement of 

2 subsection (f)(3) as part of the application evaluation, re3 view, and approval process when determining grant recipi4 ents for initial funding and continuation awards.’’. 

5 (b) DISCONTINUATION OF CERTAIN PROGRAMS.—Part 

6 B of title VI (20 U.S.C. 1130 et seq.) is amended by striking 

7 sections 613 and 614. 

8 SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTI9 TUTE FOR INTERNATIONAL PUBLIC POLICY. 

10 Part C of title VI (20 U.S.C. 1131 et seq.) is repealed. 

11 SEC. 604. GENERAL PROVISIONS. 

12 (a) DEFINITIONS.—Section 631(a) (20 U.S.C. 

13 1132(a)) is amended— 

14 (1) by striking paragraphs (5) and (9); 

15 (2) in paragraph (8), by inserting ‘‘and’’ after 

16 the semicolon at the end; and 

17 (3) by redesignating paragraphs (6), (7), (8), 

18 and (10) as paragraphs (5), (6), (7), and (8), respec19 tively. 

20 (b) SPECIAL RULE.—Section 632(2) (20 U.S.C. 1132– 

21 1(2)) is amended by inserting ‘‘substantial’’ before ‘‘need’’. 

22 (c) REPORTS.—Section 636 (20 U.S.C. 1132–5) is 

23 amended— 


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1 (1) by inserting ‘‘(a) BIENNIAL REPORT ON

2 AREAS OF NATIONAL NEED.—’’ before ‘‘The Sec3 retary’’; and 

4 (2) by adding at the end the following new sub5 section: 

6 ‘‘(b) ANNUAL REPORT ON COMPLIANCE WITH DIVERSE

7 PERSPECTIVES AND A WIDE RANGE OF VIEWS REQUIRE8 MENT.—Not later than 180 days after the date of the enact9 ment of this subsection, and annually thereafter, the Sec10 retary shall submit to the authorizing committees a report 

11 that identifies the efforts taken to ensure recipients’ compli12 ance with the requirements under this title relating to the 

13 ‘diverse perspectives and a wide range of views’ require14 ment, including any technical assistance the Department 

15 has provided, any regulatory guidance the Department has 

16 issued, and any monitoring the Department has conducted. 

17 Such report shall be made available to the public.’’. 

18 (d) REPEAL OF SCIENCE AND TECHNOLOGY ADVANCED

19 FOREIGN LANGUAGE EDUCATION GRANT PROGRAM.—Sec20 tion 637 (20 U.S.C. 1132–6) is repealed. 

21 (e) REPORTING BY INSTITUTIONS.—Section 638(b) (20 

22 U.S.C. 1132–7(b)) is amended to read as follows: 

23 ‘‘(b) DATA REQUIRED.— 

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (5), the Secretary shall require an institution 


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1 of higher education referred to in subsection (a) to file 

2 a disclosure report under paragraph (2) with the Sec3 retary on January 31 or July 31, whichever is soon4 er, with respect to the date on which such institution 

5 received a contribution— 

6 ‘‘(A) less than 7 months from such date; 

7 and 

8 ‘‘(B) greater than 30 days from such date. 

9 ‘‘(2) CONTENTS OF REPORT.—Each report to the 

10 Secretary required by this section shall contain the 

11 following information with respect to the institution 

12 of higher education filing the report: 

13 ‘‘(A) For gifts received from, or contracts 

14 entered into with a foreign source other than a 

15 foreign government, the following information: 

16 ‘‘(i) The aggregate dollar amount of 

17 such gifts and contracts attributable to each 

18 country, including the fair market value of 

19 the services of staff members, textbooks, and 

20 other in-kind gifts. 

21 ‘‘(ii) The legal name of the entity pro22 viding any such gift or contract. 

23 ‘‘(iii) The country to which the gift is 

24 attributable. 


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1 ‘‘(B) For gifts received from, or contracts 

2 entered into with, a foreign government, the ag3 gregate dollar amount of such gifts and contracts 

4 received from each foreign government and the 

5 legal name of the entity providing any such gift 

6 or contract. 

7 ‘‘(C) In the case of an institution of higher 

8 education that is owned or controlled by a for9 eign source— 

10 ‘‘(i) the identity of the foreign source; 

11 ‘‘(ii) the date on which the foreign 

12 source assumed ownership or control of the 

13 institution; and 

14 ‘‘(iii) any changes in program or 

15 structure resulting from the change in own16 ership or control. 

17 ‘‘(3) ADDITIONAL DISCLOSURES FOR RE18 STRICTED AND CONDITIONAL GIFTS.—Notwith19 standing paragraph (1), when an institution of high20 er education receives a restricted or conditional gift 

21 or contract from a foreign source, the institution shall 

22 disclose the following: 

23 ‘‘(A) In the case of gifts received from, or 

24 contracts entered into with, a foreign source 

25 other than a foreign government, the amount, the 


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1 date, and a description of such conditions or re2 strictions. 

3 ‘‘(B) The country to which the gift is attrib4 utable. 

5 ‘‘(C) In the case of gifts received from, or 

6 contracts entered into with, a foreign govern7 ment, the amount, the date, a description of such 

8 conditions or restrictions, and the name of the 

9 foreign government. 

10 ‘‘(4) ATTRIBUTION OF GIFTS.—For purposes of 

11 this subsection, the country to which a gift is attrib12 utable is— 

13 ‘‘(A) the country of citizenship; or 

14 ‘‘(B) if the information described in sub15 paragraph (A) is not known— 

16 ‘‘(i) the principal residence for a for17 eign source who is a natural person; or 

18 ‘‘(ii) the principal place of business 

19 and country of incorporation for a foreign 

20 source that is a legal entity. 

21 ‘‘(5) RELATION TO OTHER REPORTING REQUIRE22 MENTS.— 

23 ‘‘(A) STATE REQUIREMENTS.—If an institu24 tion described under subsection (a) is located 

25 within a State that has enacted requirements for 


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1 public disclosure of gifts from, or contracts with, 

2 a foreign source that are substantially similar to 

3 the requirements of this section, as determined by 

4 the Secretary, a copy of the disclosure report 

5 filed with the State may be filed with the Sec6 retary in lieu of a report required under para7 graph (1). 

8 ‘‘(B) ASSURANCES.—With respect to an in9 stitution that submits a copy of a disclosure re10 port pursuant to subparagraph (A), the State in 

11 which such institution is located shall provide to 

12 the Secretary such assurances as the Secretary 

13 may require to establish that the institution has 

14 met the requirements for public disclosure under 

15 the laws of such State. 

16 ‘‘(C) USE OF OTHER FEDERAL REPORTS.— 

17 If an institution receives a gift from, or enters 

18 into a contract with, a foreign source, where any 

19 other Federal law or regulation requires a report 

20 containing requirements substantially similar to 

21 the requirements under this section, as deter22 mined by the Secretary, a copy of the report 

23 may be filed with the Secretary in lieu of a re24 port required under subsection (b). 


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1 ‘‘(6) PUBLIC INSPECTION.—A disclosure report 

2 required by this section shall be— 

3 ‘‘(A) available as public records open to in4 spection and copying during business hours; 

5 ‘‘(B) available electronically; and 

6 ‘‘(C) made available under subparagraphs 

7 (A) and (B) not later than 30 days after the Sec8 retary receives such report. 

9 ‘‘(7) ENFORCEMENT.— 

10 ‘‘(A) COMPEL COMPLIANCE.—Whenever it 

11 appears that an institution has failed to comply 

12 with the requirements of this section, including 

13 any rule or regulation promulgated under this 

14 section, a civil action may be brought by the At15 torney General, at the request of the Secretary, 

16 in an appropriate district court of the United 

17 States, or the appropriate United States court of 

18 any territory or other place subject to the juris19 diction of the United States, to request such 

20 court to compel compliance with the require21 ments of this section. 

22 ‘‘(B) COSTS.—For knowing or willful fail23 ure to comply with the requirements of this sec24 tion, including any rule or regulation promul25 gated thereunder, an institution shall pay to the 


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1 Treasury of the United States the full costs to the 

2 United States of obtaining compliance, including 

3 all associated costs of investigation and enforce4 ment. 

5 ‘‘(8) DEFINITIONS.—In this section: 

6 ‘‘(A) CONTRACT.—The term ‘contract’ 

7 means any agreement for the acquisition by pur8 chase, lease, gift, or barter of property or services 

9 by the foreign source, for the direct benefit or use 

10 of either of the parties. 

11 ‘‘(B) FOREIGN SOURCE.—The term ‘foreign 

12 source’ means— 

13 ‘‘(i) a foreign government, including 

14 an agency of a foreign government; 

15 ‘‘(ii) a legal entity, governmental or 

16 otherwise, created solely under the laws of a 

17 foreign state or states; 

18 ‘‘(iii) an individual who is not a cit19 izen or a national of the United States or 

20 a trust territory or protectorate thereof; and 

21 ‘‘(iv) an agent, including a subsidiary 

22 or affiliate of a foreign legal entity, acting 

23 on behalf of a foreign source. 


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1 ‘‘(C) GIFT.—The term ‘gift’ means any gift 

2 of money, property, human resources, or pay3 ment of any staff. 

4 ‘‘(D) RESTRICTED OR CONDITIONAL.—The 

5 term ‘restricted or conditional’, with respect to 

6 an endowment, gift, grant, contract, award, 

7 present, or property of any kind means includ8 ing as a condition on such endowment, gift, 

9 grant, contract, award, present, or property pro10 visions regarding— 

11 ‘‘(i) the employment, assignment, or 

12 termination of faculty; 

13 ‘‘(ii) the establishment of departments, 

14 centers, research or lecture programs, insti15 tutes, instructional programs, or new fac16 ulty positions; 

17 ‘‘(iii) the selection or admission of stu18 dents; or 

19 ‘‘(iv) the award of grants, loans, schol20 arships, fellowships, or other forms of finan21 cial aid restricted to students of a specified 

22 country, religion, sex, ethnic origin, or po23 litical opinion.’’. 

24 (f) REDESIGNATIONS.—Part D of title VI (20 U.S.C. 

25 1132 et seq.) is amended— 


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1 (1) by redesignating such part as part C; and 

2 (2) by redesignating sections 631, 632, 633, 634, 

3 635, 636, and 638 as sections 621, 622, 623, 624, 625, 

4 626, and 627, respectively. 

5 (g) CONTINUATION AWARDS.—Part C of title VI (20 

6 U.S.C. 1131 et seq.), as so redesignated by subsection (f)(1) 

7 of this section, is amended by adding at the end the fol8 lowing new sections: 

9 ‘‘SEC. 628. CONTINUATION AWARDS. 

10 ‘‘The Secretary shall make continuation awards under 

11 this title for the second and succeeding years of a grant 

12 only after determining that the recipient is making satisfac13 tory progress in carrying out the stated grant objectives ap14 proved by the Secretary. 

15 ‘‘SEC. 629. COMPLIANCE WITH DIVERSE PERSPECTIVE AND 

16 A WIDE RANGE OF VIEWS. 

17 ‘‘When complying with the requirement of this title to 

18 offer a diverse perspective and a wide range of views, a re19 cipient of a grant under this title shall not promote any 

20 biased views that are discriminatory toward any group, re21 ligion, or population of people. 

22 ‘‘SEC. 630. AUTHORIZATION OF APPROPRIATIONS. 

23 ‘‘There is authorized to be appropriated to carry out 

24 this title $61,525,000 for each of fiscal years 2019 through 

25 2024.’’. 


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1 TITLE VII—GRADUATE AND 

2 POSTSECONDARY IMPROVE3 MENT PROGRAMS 

4 SEC. 701. GRADUATE EDUCATION PROGRAMS. 

5 (a) REPEAL OF JACOB K. JAVITS FELLOWSHIP PRO6 GRAM.—Subpart 1 of part A of title VII (20 U.S.C. 1134 

7 et seq.) is repealed. 

8 (b) REPEAL OF THURGOOD MARSHALL LEGAL EDU9 CATIONAL OPPORTUNITY PROGRAM.—Subpart 3 of part A 

10 of title VII (20 U.S.C. 1136) is repealed. 

11 (c) AUTHORIZATION OF APPROPRIATIONS FOR GRAD12 UATE ASSISTANCE IN AREAS OF NATIONAL NEED.—Section 

13 716 (20 U.S.C. 1135e) is amended striking ‘‘$35,000,000’’ 

14 and all that follows through the period at the end and in15 serting ‘‘$28,047,000 for each of fiscal years 2019 through 

16 2024.’’. 

17 (d) REDESIGNATIONS.—Part A of title VII (20 U.S.C. 

18 1134 et seq.) is amended— 

19 (1) by redesignating subparts 2, 4, and 5 as sub20 parts 1, 2, and 3 respectively; 

21 (2) by redesignating sections 711 through 716 as 

22 sections 701 through 706, respectively; 

23 (3) by redesignating sections 723 through 725 as 

24 sections 711 through 713, respectively; and 

25 (4) by redesignating section 731 as section 721. 


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1 (e) AMENDMENT OF CROSS REFERENCES.—Part A of 

2 title VII (20 U.S.C. 1134 et seq.) is amended— 

3 (1) in section 703(b)(8), as so redesignated, by 

4 striking ‘‘section 715’’ and inserting ‘‘section 705’’; 

5 (2) in section 704(c)), as so redesignated— 

6 (A) by striking ‘‘section 715(a)’’ and insert7 ing ‘‘section 705(a)’’; and 

8 (B) by striking ‘‘section 713(b)(2)’’ and in9 serting ‘‘section 703(b)(2)’’; 

10 (3) in section 711(e), as so redesignated, by 

11 striking ‘‘724’’ and inserting ‘‘712’’; 

12 (4) in section 712(e), as so redesignated, by 

13 striking ‘‘723’’ and inserting ‘‘711’’; 

14 (5) in section 713, as so redesignated— 

15 (A) in subsection (a), by striking ‘‘section 

16 723’’ and all that follows through the period at 

17 the end and inserting ‘‘section 711, $7,500,000 

18 for fiscal year 2019 and each of the five suc19 ceeding fiscal years.’’; and 

20 (B) in subsection (b), by striking ‘‘section 

21 724’’ and inserting ‘‘section 712’’; and 

22 (6) in section 721, as so redesignated— 

23 (A) in the section heading, by striking 

24 ‘‘THROUGH 4’’ and inserting ‘‘AND 2’’; 


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1 (B) by striking ‘‘subparts 1 through 4’’ each 

2 place such term appears and inserting ‘‘subparts 

3 1 and 2’’; 

4 (C) in subsection (c)— 

5 (i) by striking ‘‘section 703(b) or 

6 715(a)’’ and inserting ‘‘section 705(a)’’; and 

7 (ii) by striking ‘‘subpart 1 or 2, respec8 tively,’’ and inserting ‘‘subpart 1’’; and 

9 (D) in subsection (d), by striking ‘‘subpart 

10 1, 2, 3, or 4’’ and inserting ‘‘subpart 1 or 2’’. 

11 SEC. 702. REPEAL OF FUND FOR THE IMPROVEMENT OF 

12 POSTSECONDARY EDUCATION. 

13 Part B of title VII (20 U.S.C. 1138 et seq.) is repealed. 

14 SEC. 703. PROGRAMS FOR STUDENTS WITH DISABILITIES. 

15 (a) REDESIGNATIONS.— 

16 (1) SUBPART.—Part D of title VII (20 U.S.C. 

17 1140 et seq.) is amended by striking subparts 1 and 

18 3 and redesignating subparts 2 and 4 as subparts 1 

19 and 2, respectively. 

20 (2) PART.—Part D of title VII (20 U.S.C. 1140 

21 et seq.), as amended by paragraph (1), is redesignated 

22 as part B of such Act. 

23 (3) DEFINITIONS.—Section 760 (20 U.S.C. 1140) 

24 is redesignated as section 730 of such Act. 


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1 (b) MODEL TRANSITION PROGRAMS; COORDINATING

2 CENTER.— 

3 (1) PURPOSE.—Section 766 (20 U.S.C. 1140f) is 

4 redesignated as section 731 of such Act. 

5 (2) MODEL COMPREHENSIVE TRANSITION AND

6 POSTSECONDARY PROGRAMS.—Section 767 (20 U.S.C. 

7 1140g) is amended— 

8 (A) by redesignating such section as section 

9 732 of such Act; 

10 (B) in subsection (a)(1)— 

11 (i) by striking ‘‘section 769(a)’’ and 

12 inserting ‘‘section 736(a)’’; and 

13 (ii) by striking ‘‘institutions of higher 

14 education (or consortia of institutions of 

15 higher education), to enable the institutions 

16 or consortia’’ and inserting ‘‘eligible appli17 cants, to enable the eligible applicants’’; 

18 (C) by striking subsection (b) and inserting 

19 the following: 

20 ‘‘(b) APPLICATION.—An eligible applicant desiring a 

21 grant under this section shall submit to the Secretary, at 

22 such time and in such manner as the Secretary may re23 quire, an application that— 

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1 ceived under this section will meet the requirements 

2 of subsection (d); 

3 ‘‘(2) describes how the model program proposed 

4 to be operated is based on the demonstrated needs of 

5 students with intellectual disabilities served by the eli6 gible applicant and potential employers; 

7 ‘‘(3) describes how the model program proposed 

8 to be operated will coordinate with other Federal, 

9 State, and local programs serving students with intel10 lectual disabilities, including programs funded under 

11 the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.); 

12 ‘‘(4) describes how the model program will be 

13 sustained once the grant received under this section 

14 ends; 

15 ‘‘(5) if applicable, describes how the eligible ap16 plicant will meet the preferences described in sub17 section (c)(3); and 

18 ‘‘(6) demonstrates the ability of the eligible ap19 plicant to meet the requirement under subsection 

20 (e).’’. 

21 (D) in subsection (c)(3)— 

22 (i) in subparagraph (B), by striking 

23 ‘‘institution of higher education’’ and in24 serting ‘‘eligible applicant’’; and 


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1 (ii) in subparagraph (C), by striking 

2 ‘‘students attending the institution of higher 

3 education’’ and inserting ‘‘the eligible ap4 plicant’s students’’; 

5 (E) in subsection (d)— 

6 (i) in the matter preceding paragraph 

7 (1), by striking ‘‘An institution of higher 

8 education (or consortium)’’ and inserting 

9 ‘‘An eligible applicant’’; 

10 (ii) in paragraph (2), by striking ‘‘in11 stitution of higher education’s’’ and insert12 ing ‘‘eligible applicant’s’’; 

13 (iii) in paragraph (3)(D), by striking 

14 ‘‘that lead to gainful employment’’; 

15 (iv) in paragraph (5), by striking ‘‘sec16 tion 777(b)’’ and inserting ‘‘section 734’’; 

17 (v) in paragraph (6), by inserting 

18 ‘‘and’’ after the semicolon at the end; 

19 (vi) by striking paragraph (7); and 

20 (vii) by redesignating paragraph (8) 

21 as paragraph (7); 

22 (F) in subsection (e), by striking ‘‘An insti23 tution of higher education (or consortium)’’ and 

24 inserting ‘‘An eligible applicant’’; 


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1 (G) in subsection (f), by striking ‘‘Not later 

2 than five years after the date of the first grant 

3 awarded under this section’’ and inserting ‘‘Not 

4 less often than once every 5 years’’; and 

5 (H) by adding at the end the following new 

6 subsection: 

7 ‘‘(g) DEFINITION.—For purposes of this subpart, the 

8 term ‘eligible applicant’ means an institution of higher edu9 cation or a consortium of institutions of higher education.’’. 

10 (3) REDESIGNATIONS.—Sections 768 and 769 

11 (20 U.S.C. 1140i) are redesignated as sections 733 

12 and 736, respectively. 

13 (4) COORDINATING CENTER AND COMMISSION.— 

14 Subpart 1 of part D of title VII, as so redesignated 

15 by subsection (a)(1), is amended by inserting after 

16 section 733 (as so redesignated by paragraph (3)) the 

17 following: 

18 ‘‘SEC. 734. COORDINATING CENTER. 

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

20 provide technical assistance and information on best and 

21 promising practices to eligible applicants awarded grants 

22 under section 732. 

23 ‘‘(b) COORDINATING CENTER.— 

24 ‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In this 

25 section, the term ‘eligible entity’ means an entity, or 


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1 a partnership of entities, that has demonstrated ex2 pertise in the fields of— 

3 ‘‘(A) higher education; 

4 ‘‘(B) the education of students with intellec5 tual disabilities; 

6 ‘‘(C) the development of comprehensive tran7 sition and postsecondary programs for students 

8 with intellectual disabilities; and 

9 ‘‘(D) evaluation and technical assistance. 

10 ‘‘(2) IN GENERAL.—From amounts appropriated 

11 under section 736, the Secretary shall enter into a co12 operative agreement, on a competitive basis, with an 

13 eligible entity for the purpose of establishing a coordi14 nating center for institutions of higher education that 

15 offer inclusive comprehensive transition and postsec16 ondary programs for students with intellectual dis17 abilities, including eligible applicants receiving 

18 grants under section 732, to provide— 

19 ‘‘(A) recommendations related to the devel20 opment of standards for such programs; 

21 ‘‘(B) technical assistance for such programs; 

22 and 

23 ‘‘(C) evaluations for such programs. 

24 ‘‘(3) ADMINISTRATION.—The program under this 

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1 partment that administers other postsecondary edu2 cation programs. 

3 ‘‘(4) DURATION.—A cooperative agreement en4 tered into pursuant to this section shall have a term 

5 of 5 years. 

6 ‘‘(5) REQUIREMENTS OF COOPERATIVE AGREE7 MENT.—The cooperative agreement entered into pur8 suant to this section shall provide that the eligible en9 tity entering into such agreement shall establish and 

10 maintain a coordinating center that shall— 

11 ‘‘(A) serve as the technical assistance entity 

12 for all comprehensive transition and postsec13 ondary programs for students with intellectual 

14 disabilities; 

15 ‘‘(B) provide technical assistance regarding 

16 the development, evaluation, and continuous im17 provement of such programs; 

18 ‘‘(C) develop an evaluation protocol for such 

19 programs that includes qualitative and quan20 titative methodologies for measuring student out21 comes and program strengths in the areas of aca22 demic enrichment, socialization, independent liv23 ing, and competitive or supported employment; 

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1 dential to students with intellectual disabilities 

2 upon the completion of such programs, which 

3 credential shall take into consideration unique 

4 State factors; 

5 ‘‘(E) develop recommendations for the nec6 essary components of such programs, such as— 

7 ‘‘(i) academic, vocational, social, and 

8 independent living skills; 

9 ‘‘(ii) evaluation of student progress; 

10 ‘‘(iii) program administration and 

11 evaluation; 

12 ‘‘(iv) student eligibility; and 

13 ‘‘(v) issues regarding the equivalency of 

14 a student’s participation in such programs 

15 to semester, trimester, quarter, credit, or 

16 clock hours at an institution of higher edu17 cation, as the case may be; 

18 ‘‘(F) analyze possible funding sources for 

19 such programs and provide recommendations to 

20 such programs regarding potential funding 

21 sources; 

22 ‘‘(G) develop model memoranda of agree23 ment for use between or among institutions of 

24 higher education and State and local agencies 

25 providing funding for such programs; 


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1 ‘‘(H) develop mechanisms for regular com2 munication, outreach, and dissemination of in3 formation about comprehensive transition and 

4 postsecondary programs for students with intel5 lectual disabilities under section 732 between or 

6 among such programs and to families and pro7 spective students; 

8 ‘‘(I) host a meeting of all recipients of 

9 grants under section 732 not less often than once 

10 every 3 years; and 

11 ‘‘(J) convene a workgroup to develop and 

12 recommend model criteria, standards, and com13 ponents of such programs as described in sub14 paragraph (E) that are appropriate for the de15 velopment of accreditation standards, which 

16 workgroup shall include— 

17 ‘‘(i) an expert in higher education; 

18 ‘‘(ii) an expert in special education; 

19 ‘‘(iii) a representative of a disability 

20 organization that represents students with 

21 intellectual disabilities; 

22 ‘‘(iv) a representative from the Na23 tional Advisory Committee on Institutional 

24 Quality and Integrity; and 


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1 ‘‘(v) a representative of a regional or 

2 national accreditation agency or associa3 tion. 

4 ‘‘(6) REPORT.—Not less often than once every 5 

5 years, the coordinating center shall report to the Sec6 retary, the authorizing committees, and the National 

7 Advisory Committee on Institutional Quality and In8 tegrity on the recommendations of the workgroup de9 scribed in paragraph (5)(J). 

10 ‘‘SEC. 735. ACCESSIBLE INSTRUCTIONAL MATERIALS IN 

11 HIGHER EDUCATION. 

12 ‘‘(a) COMMISSION STRUCTURE.— 

13 ‘‘(1) ESTABLISHMENT OF COMMISSION.— 

14 ‘‘(A) IN GENERAL.—The Speaker of the 

15 House of Representatives, the President pro tem16 pore of the Senate, and the Secretary of Edu17 cation shall establish an independent commis18 sion, comprised of key stakeholders, to develop 

19 voluntary guidelines for accessible postsecondary 

20 electronic instructional materials and related 

21 technologies in order— 

22 ‘‘(i) to ensure students with disabilities 

23 are afforded the same educational benefits 

24 provided to nondisabled students through 


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1 the use of electronic instructional materials 

2 and related technologies; 

3 ‘‘(ii) to inform better the selection and 

4 use of such materials and technologies at in5 stitutions of higher education; and 

6 ‘‘(iii) to encourage entities that 

7 produce such materials and technologies to 

8 make accessible versions more readily avail9 able in the market. 

10 In fulfilling this duty, the commission shall re11 view applicable national and international in12 formation technology accessibility standards, 

13 which it will compile and annotate as an addi14 tional information resource for institutions of 

15 higher education and companies that service the 

16 higher education market. 

17 ‘‘(B) MEMBERSHIP.— 

18 ‘‘(i) STAKEHOLDER GROUPS.—The 

19 commission shall be composed of representa20 tives from the following categories: 

21 ‘‘(I) DISABILITY.—Communities 

22 of persons with disabilities for whom 

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1 tor in ensuring equal participation in 

2 higher education, and nonprofit orga3 nizations that provide accessible elec4 tronic materials to these communities. 

5 ‘‘(II) HIGHER EDUCATION.— 

6 Higher education leadership, which in7 cludes: university presidents, provosts, 

8 deans, vice presidents, deans of librar9 ies, chief information officers, and 

10 other senior institutional executives. 

11 ‘‘(III) INDUSTRY.—Relevant in12 dustry representatives, meaning— 

13 ‘‘(aa) developers of postsec14 ondary electronic instructional 

15 materials; and 

16 ‘‘(bb) manufacturers of re17 lated technologies. 

18 ‘‘(ii) APPOINTMENT OF MEMBERS.— 

19 The commission members shall be appointed 

20 as follows: 

21 ‘‘(I) Six members, 2 from each 

22 category described in clause (i), shall 

23 be appointed by the Speaker of the 

24 House of Representatives, 3 of whom 

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1 tion of the majority leader of the House 

2 of Representatives and 3 of whom shall 

3 be appointed on the recommendation of 

4 the minority leader of the House of 

5 Representatives, with the Speaker en6 suring that 1 developer of postsec7 ondary electronic instructional mate8 rials and 1 manufacturer of related 

9 technologies are appointed. The Speak10 er shall also appoint 2 additional 

11 members, 1 student with a disability 

12 and 1 faculty member from an institu13 tion of higher education. 

14 ‘‘(II) Six members, 2 from each 

15 category described in clause (i), shall 

16 be appointed by the President pro tem17 pore of the Senate, 3 of whom shall be 

18 appointed on the recommendation of 

19 the majority leader of the Senate and 

20 3 of whom shall be appointed on the 

21 recommendation of the minority leader 

22 of the Senate, with the President pro 

23 tempore ensuring that 1 developer of 

24 postsecondary electronic instructional 

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1 lated technologies are appointed. The 

2 President pro tempore shall also ap3 point 2 additional members, 1 student 

4 with a disability and 1 faculty member 

5 from an institution of higher edu6 cation. 

7 ‘‘(III) Three members, each of 

8 whom must possess extensive, dem9 onstrated technical expertise in the de10 velopment and implementation of ac11 cessible postsecondary electronic in12 structional materials, shall be ap13 pointed by the Secretary of Education. 

14 One of these members shall represent 

15 postsecondary students with disabil16 ities, 1 shall represent higher education 

17 leadership, and 1 shall represent devel18 opers of postsecondary electronic in19 structional materials. 

20 ‘‘(iii) ELIGIBILITY TO SERVE ON THE

21 COMMISSION.—Federal employees are ineli22 gible for appointment to the commission. 

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1 mission so long as his or her primary em2 ployment is with a non-Federal entity and 

3 he or she is not otherwise engaged in finan4 cially compensated work on behalf of the 

5 Federal Government, exclusive of any stand6 ard expense reimbursement or grant-funded 

7 activities. 

8 ‘‘(2) AUTHORITY AND ADMINISTRATION.— 

9 ‘‘(A) AUTHORITY.—The commission’s execu10 tion of its duties shall be independent of the Sec11 retary of Education, the Attorney General, and 

12 the head of any other agency or department of 

13 the Federal Government with regulatory or 

14 standard setting authority in the areas addressed 

15 by the commission. 

16 ‘‘(B) ADMINISTRATION.— 

17 ‘‘(i) STAFFING.—There shall be no per18 manent staffing for the commission. 

19 ‘‘(ii) LEADERSHIP.—Commission 

20 members shall elect a chairperson from 

21 among the 19 appointees to the commission. 

22 ‘‘(iii) ADMINISTRATIVE SUPPORT.—The 

23 Commission shall be provided administra24 tive support, as needed, by the Secretary of 

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1 ondary Education of the Department of 

2 Education. 

3 ‘‘(C) TERMINATION.—The Commission shall 

4 terminate on the day after the date on which the 

5 Commission issues the voluntary guidelines and 

6 annotated list of information technology stand7 ards described in subsection (b), or two years 

8 from the date of enactment of the PROSPER 

9 Act, whichever comes first. 

10 ‘‘(b) DUTIES OF THE COMMISSION.— 

11 ‘‘(1) PRODUCE VOLUNTARY GUIDELINES.—Not 

12 later than 18 months after the date of enactment of 

13 the PROSPER Act, subject to a 6-month extension 

14 that it may exercise at its discretion, the commission 

15 established in subsection (a) shall— 

16 ‘‘(A) develop and issue voluntary guidelines 

17 for accessible postsecondary electronic instruc18 tional materials and related technologies; and 

19 ‘‘(B) in developing the voluntary guidelines, 

20 the commission shall— 

21 ‘‘(i) establish a technical panel pursu22 ant to paragraph (4) to support the com23 mission in developing the voluntary guide24 lines; 


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1 ‘‘(ii) develop criteria for determining 

2 which materials and technologies constitute 

3 ‘postsecondary electronic instructional ma4 terials’ and ‘related technologies’ as defined 

5 in subparagraphs (D) and (E) of subsection 

6 (f); 

7 ‘‘(iii) identify existing national and 

8 international accessibility standards that 

9 are relevant to student use of postsecondary 

10 electronic instructional materials and re11 lated technologies at institutions of higher 

12 education; 

13 ‘‘(iv) identify and address any unique 

14 pedagogical and accessibility requirements 

15 of postsecondary electronic instructional 

16 materials and related technologies that are 

17 not addressed, or not adequately addressed, 

18 by the identified, relevant existing accessi19 bility standards; 

20 ‘‘(v) identify those aspects of accessi21 bility, and types of postsecondary instruc22 tional materials and related technologies, 

23 for which the commission cannot produce 

24 guidelines or which cannot be addressed by 

25 existing accessibility standards due to— 


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1 ‘‘(I) inherent limitations of com2 mercially available technologies; or 

3 ‘‘(II) the challenges posed by a 

4 specific category of disability that cov5 ers a wide spectrum of impairments 

6 and capabilities which makes it dif7 ficult to assess the benefits from par8 ticular guidelines on a categorical 

9 basis; 

10 ‘‘(vi) ensure that the voluntary guide11 lines are consistent with the requirements of 

12 section 504 of the Rehabilitation Act of 

13 1973 (29 U.S.C. 794) and titles II and III 

14 of the Americans with Disabilities Act (42 

15 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et 

16 seq.); 

17 ‘‘(vii) ensure that the voluntary guide18 lines are consistent, to the extent feasible 

19 and appropriate, with the technical and 

20 functional performance criteria included in 

21 the national and international accessibility 

22 standards identified by the commission as 

23 relevant to student use of postsecondary 

24 electronic instructional materials and re25 lated technologies; 


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1 ‘‘(viii) allow for the use of an alter2 native design or technology that results in 

3 substantially equivalent or greater accessi4 bility and usability by individuals with 

5 disabilities than would be provided by com6 pliance with the voluntary guidelines; and 

7 ‘‘(ix) provide that where electronic in8 structional materials or related technologies 

9 that comply fully with the voluntary guide10 lines are not commercially available, or 

11 where such compliance is not technically 

12 feasible, the institution may select the prod13 uct that best meets the voluntary guidelines 

14 consistent with the institution’s business 

15 and pedagogical needs. 

16 ‘‘(2) PRODUCE ANNOTATED LIST OF INFORMA17 TION TECHNOLOGY STANDARDS.—Not later than 18 

18 months after the date of the enactment of the PROS19 PER Act, subject to a 6-month extension that it may 

20 exercise at its discretion, the commission established 

21 in subsection (a) shall, with the assistance of the tech22 nical panel established under paragraph (4), develop 

23 and issue an annotated list of information technology 

24 standards. 


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1 ‘‘(3) SUPERMAJORITY APPROVAL.—Issuance of 

2 the voluntary guidelines and annotated list of infor3 mation technology standards shall require approval of 

4 at least 75 percent (at least 15) of the 19 members of 

5 the commission. 

6 ‘‘(4) ESTABLISHMENT OF TECHNICAL PANEL.— 

7 Not later than 1 month after the Commission’s first 

8 meeting, it shall appoint and convene a panel of 12 

9 technical experts, each of whom shall have extensive, 

10 demonstrated technical experience in developing, re11 searching, or implementing accessible postsecondary 

12 electronic instructional materials or related tech13 nologies. The commission has discretion to determine 

14 a process for nominating, vetting, and confirming a 

15 panel of experts that fairly represents the stakeholder 

16 communities on the commission. The technical panel 

17 shall include a representative from the United States 

18 Access Board. 

19 ‘‘(c) PERIODIC REVIEW AND REVISION OF VOLUNTARY

20 GUIDELINES.—Not later than 5 years after issuance of the 

21 voluntary guidelines and annotated list of information tech22 nology standards described in paragraphs (1) and (2) of 

23 section (b), and every 5 years thereafter, the Secretary of 

24 Education shall publish a notice in the Federal Register 

25 requesting public comment about whether there is a need 


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1 to reconstitute the commission to update the voluntary 

2 guidelines and annotated list of information technology 

3 standards to reflect technological advances, changes in post4 secondary electronic instructional materials and related 

5 technologies, or updated national and international accessi6 bility standards. The Secretary shall submit a report to 

7 Congress summarizing the public comments and presenting 

8 the Secretary’s decision on whether to reconstitute the com9 mission based on those comments. If the Secretary decides 

10 to reconstitute the commission, the Secretary may imple11 ment that decision 30 days after the date on which the re12 port was submitted to Congress. That process shall begin 

13 with the Secretary requesting the appointment of commis14 sion members as detailed in subsection (a)(1)(B)(ii). If the 

15 Secretary reconstitutes the Commission, the Commission 

16 shall terminate on the day after the date on which the Com17 mission issues updated voluntary guidelines and annotated 

18 list of information technology standards, or two years from 

19 the date on which the Secretary reconstitutes the Commis20 sion, whichever comes first. 

21 ‘‘(d) SAFE HARBOR PROTECTIONS.—The following de22 fenses from liability may be asserted with respect to claims 

23 regarding the use of postsecondary instructional materials 

24 and related technologies arising under section 504 of the 

25 Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II 


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1 and III of the Americans with Disabilities Act of 1990 (42 

2 U.S.C. 12131 et seq. and 12181 et seq.), subject to the judi3 cial review afforded under those Acts and without limiting 

4 any other defenses provided under those Acts: 

5 ‘‘(1) SAFE HARBOR FOR CONFORMING POSTSEC6 ONDARY ELECTRONIC INSTRUCTIONAL MATERIALS AND

7 RELATED TECHNOLOGIES.—An institution of higher 

8 education that requires, provides, or both recommends 

9 and provides, postsecondary electronic instructional 

10 materials or related technologies that conform to the 

11 voluntary guidelines shall be deemed in compliance 

12 with, and qualify for a safe harbor from liability in 

13 relation to, its obligations under section 504 of the 

14 Rehabilitation Act of 1973 (29 U.S.C. 794) and titles 

15 II and III of the Americans with Disabilities Act (42 

16 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) with 

17 respect to its selection of such materials or tech18 nologies. 

19 ‘‘(2) LIMITED SAFE HARBOR FOR NONCON20 FORMING POSTSECONDARY ELECTRONIC INSTRUC21 TIONAL MATERIALS OR RELATED TECHNOLOGIES.— 

22 An institution of higher education that requires, pro23 vides, or both recommends and provides, postsec24 ondary electronic instructional materials or related 

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1 untary guidelines, but which institution otherwise 

2 complies with all requirements set forth in subpara3 graphs (A), (B), and (C), will qualify for a limited 

4 safe harbor from monetary damages under section 504 

5 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 

6 titles II and III of the Americans with Disabilities 

7 Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 et 

8 seq.), with available remedies under section 505 of the 

9 Rehabilitation Act of 1973 (29 U.S.C. 794a), section 

10 103 of the Americans with Disabilities Act of 1990 

11 (42 U.S.C. 12133), and section 308 of such Act (42 

12 U.S.C. 12188) limited to declaratory and injunctive 

13 relief, and for a prevailing party other than the 

14 United States, a reasonable attorney’s fee, if the insti15 tution— 

16 ‘‘(A) documented its efforts to incorporate 

17 and use the voluntary guidelines in its policies 

18 and practices regarding its selection or procure19 ment of postsecondary electronic instructional 

20 materials and related technologies. These efforts 

21 may include establishment of a written policy re22 garding the institution’s use of the voluntary 

23 guidelines, identifying the official(s) authorized 

24 to approve the selection of nonconforming post25 secondary electronic instructional materials or 


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1 related technologies, and procedures used by the 

2 official(s) when making such authorizations; 

3 ‘‘(B) documented instances where noncon4 forming postsecondary electronic instructional 

5 materials or related technologies are selected or 

6 procured, including an explanation of— 

7 ‘‘(i) the process utilized for identifying 

8 accessible options in the marketplace; 

9 ‘‘(ii) the options considered, if any are 

10 available; 

11 ‘‘(iii) the choice the institution ulti12 mately made and why; 

13 ‘‘(iv) what auxiliary aid or service, 

14 reasonable modification, or other method the 

15 institution will utilize to ensure that af16 fected students within categories of dis17 ability are afforded the rights to which they 

18 are entitled under section 504 of the Reha19 bilitation Act of 1973 (29 U.S.C. 794) and 

20 titles II and III of the Americans with Dis21 abilities Act (42 U.S.C. 12131 et seq.; 42 

22 U.S.C. 12181 et seq.), including an equally 

23 effective opportunity to receive the same 

24 educational benefit as afforded to non25 disabled students; and 


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1 ‘‘(v) where a student or students with 

2 disabilities are affected by nonconforming 

3 instructional materials or related tech4 nologies, what auxiliary aid or service, rea5 sonable modification, or other method the 

6 institution is using to ensure the student or 

7 students are afforded the rights described in 

8 clause (iv); and 

9 ‘‘(C) posted a link to an accessible copy of 

10 the voluntary guidelines and annotated list of 

11 information technology standards on a publicly 

12 available page of its website. 

13 ‘‘(e) CONSTRUCTION.— 

14 ‘‘(1) NONCONFORMING POSTSECONDARY ELEC15 TRONIC INSTRUCTIONAL MATERIALS OR RELATED

16 TECHNOLOGIES.—Nothing in this section shall be con17 strued to require an institution of higher education to 

18 require, provide, or both recommend and provide, 

19 postsecondary electronic instructional materials or re20 lated technologies that conform to the voluntary 

21 guidelines. However, an institution that selects or 

22 uses nonconforming postsecondary electronic instruc23 tional materials or related technologies must other24 wise comply with existing obligations under section 

25 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) 


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1 and titles II and III of the Americans with Disabil2 ities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 

3 et seq.) to provide access to the educational benefit af4 forded by such materials and technologies through 

5 provision of appropriate and reasonable modification, 

6 accommodation, and auxiliary aids or services. 

7 ‘‘(2) RELATIONSHIP TO EXISTING LAWS AND

8 REGULATIONS.—With respect to the Americans with 

9 Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and 

10 the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 

11 except as provided in subsection (d), nothing in this 

12 section may be construed— 

13 ‘‘(A) to authorize or require conduct prohib14 ited under the Americans with Disabilities Act of 

15 1990 and the Rehabilitation Act of 1973, includ16 ing the regulations issued pursuant to those 

17 laws; 

18 ‘‘(B) to expand, limit, or alter the remedies 

19 or defenses under the Americans with Disabil20 ities Act of 1990 and the Rehabilitation Act of 

21 1973; 

22 ‘‘(C) to supersede, restrict, or limit the ap23 plication of the Americans with Disabilities Act 

24 of 1990 and the Rehabilitation Act of 1973; or 


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1 ‘‘(D) to limit the authority of Federal agen2 cies to issue regulations pursuant to the Ameri3 cans with Disabilities Act of 1990 and the Reha4 bilitation Act of 1973. 

5 ‘‘(3) VOLUNTARY NATURE OF THE PRODUCTS OF

6 THE COMMISSION.— 

7 ‘‘(A) VOLUNTARY GUIDELINES.—It is the 

8 intent of the Congress that use of the voluntary 

9 guidelines developed pursuant to this section is 

10 and should remain voluntary. The voluntary 

11 guidelines shall not confer any rights or impose 

12 any obligations on commission participants, in13 stitutions of higher education, or other persons, 

14 except for the legal protections set forth in sub15 section (d). Thus, no department or agency of the 

16 Federal Government may incorporate the vol17 untary guidelines, whether produced as a dis18 crete document or electronic resource, into regu19 lations promulgated under the Rehabilitation 

20 Act, the Americans with Disabilities Act, or any 

21 other Federal law or instrument. This restriction 

22 applies only to the voluntary guidelines as a dis23 crete document or resource; it imposes no limita24 tion on Federal use of standards or resources to 

25 which the voluntary guidelines may refer. 


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1 ‘‘(B) ANNOTATED LIST.—It is the intent of 

2 Congress that use of the annotated list of infor3 mation technology standards developed pursuant 

4 to this section is and should remain voluntary. 

5 The Annotated List shall not confer any rights 

6 or impose any obligations on Commission par7 ticipants, institutions of higher education, or 

8 other persons. Thus, no department or agency of 

9 the Federal Government may incorporate the An10 notated List, whether produced as a discrete doc11 ument or electronic resource into regulations 

12 promulgated under the Rehabilitation Act, the 

13 Americans with Disabilities Act, or any other 

14 Federal law or instrument. This provision ap15 plies only to the Annotated List as a discrete 

16 document or resource; it imposes no limitation 

17 on Federal use of standards or resources to which 

18 the Annotated List may refer. 

19 ‘‘(f) DEFINITIONS.—In this section, the following defi20 nitions apply: 

21 ‘‘(1) ANNOTATED LIST OF INFORMATION TECH22 NOLOGY STANDARDS.—The term ‘annotated list of in23 formation technology standards’ means a list of exist24 ing national and international accessibility standards 

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1 structional materials and related technologies, and to 

2 other types of information technology common to in3 stitutions of higher education (such as institutional 

4 websites and class registration systems), annotated by 

5 the commission established pursuant to subsection (a) 

6 to provide information about the applicability of such 

7 standards in higher education settings. The annotated 

8 list of information technology standards is intended 

9 to serve solely as a reference tool to inform any con10 sideration of the relevance of such standards in higher 

11 education contexts. 

12 ‘‘(2) DISABILITY.—The term ‘disability’ has the 

13 meaning given such term in section 3 of the Ameri14 cans with Disabilities Act of 1990 (42 U.S.C. 12102). 

15 ‘‘(3) NONCONFORMING POSTSECONDARY ELEC16 TRONIC INSTRUCTIONAL MATERIALS OR RELATED

17 TECHNOLOGIES.—The term ‘nonconforming materials 

18 or related technologies’ means postsecondary electronic 

19 instructional materials or related technologies that do 

20 not conform to the voluntary guidelines to be devel21 oped pursuant to this subpart. 

22 ‘‘(4) POSTSECONDARY ELECTRONIC INSTRUC23 TIONAL MATERIALS.—The term ‘postsecondary elec24 tronic instructional materials’ means digital cur25 ricular content that is required, provided, or both recVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00582 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 ommended and provided by an institution of higher 

2 education for use in a postsecondary instructional 

3 program. 

4 ‘‘(5) RELATED TECHNOLOGIES.—The term ‘re5 lated technologies’ refers to any software, applica6 tions, learning management or content management 

7 systems, and hardware that an institution of higher 

8 education requires, provides, or both recommends and 

9 provides for student access to and use of postsec10 ondary electronic instructional materials in a postsec11 ondary instructional program. 

12 ‘‘(6) TECHNICAL PANEL.—The term ‘technical 

13 panel’ means a group of experts with extensive, dem14 onstrated technical experience in the development and 

15 implementation of accessibility features for postsec16 ondary electronic instructional materials and related 

17 technologies, established by the Commission pursuant 

18 to subsection (b)(4), which will assist the commission 

19 in the development of the voluntary guidelines and 

20 annotated list of information technology standards 

21 authorized under this subpart. 

22 ‘‘(7) VOLUNTARY GUIDELINES.—The term ‘vol23 untary guidelines’ means a set of technical and func24 tional performance criteria to be developed by the 

25 commission established pursuant to subsection (a) 


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1 that provide specific guidance regarding both the ac2 cessibility and pedagogical functionality of postsec3 ondary electronic instructional materials and related 

4 technologies not addressed, or not adequately ad5 dressed, by existing accessibility standards.’’. 

6 (5) AUTHORIZATION OF APPROPRIATIONS.—Sec7 tion 736, as so redesignated by paragraph (3), is 

8 amended— 

9 (A) in subsection (a), by striking ‘‘such 

10 sums as may be necessary for fiscal year 2009’’ 

11 and inserting ‘‘$11,800,000 for fiscal year 2019’’; 

12 and 

13 (B) by striking subsection (b) and inserting 

14 the following: 

15 ‘‘(b) RESERVATION OF FUNDS.—For any fiscal year 

16 for which appropriations are made for this subpart, the 

17 Secretary— 

18 ‘‘(1) shall reserve funds to enter into a coopera19 tive agreement to establish the coordinating center 

20 under section 734, in an amount that is equal to— 

21 ‘‘(A) not less than $240,000 for any year in 

22 which the amount appropriated to carry out this 

23 subpart is $8,000,000 or less; or 

24 ‘‘(B) equal to 3 percent of the amount ap25 propriated to carry out this subpart for any year 


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1 in which such amount appropriated is greater 

2 than $8,000,000; and 

3 ‘‘(2) may reserve funds to award the grant, con4 tract, or cooperative agreement described in section 

5 742.’’. 

6 (c) NATIONAL TECHNICAL ASSISTANCE CENTER.— 

7 (1) SUBPART HEADING.—The subpart heading 

8 for subpart 2 of part B of title VII (20 U.S.C. 1140p 

9 et seq.), as redesignated by subsection (a), is amended 

10 by striking ‘‘; Coordinating Center’’. 

11 (2) PURPOSE.—Section 776 (20 U.S.C. 1140p) is 

12 amended— 

13 (A) by redesignating such section as section 

14 741 of such Act; and 

15 (B) by striking ‘‘grants, contracts, or coop16 erative agreements under subpart 1, 2, or 3’’ and 

17 inserting ‘‘grants or a cooperative agreement 

18 under subpart 1’’. 

19 (3) NATIONAL TECHNICAL ASSISTANCE.—Section 

20 777 (20 U.S.C. 1140q) is amended— 

21 (A) by redesignating such section as section 

22 742 of such Act; 

23 (B) in the section heading, by striking ‘‘; 

24 COORDINATING CENTER’’; 


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1 (C) in subsection (a)(1), by striking ‘‘appro2 priated under section 778’’ and inserting ‘‘re3 served under section 736(b)(2)’’; 

4 (D) by amending subsection (a)(3)(D) to 

5 read as follows: 

6 ‘‘(D) the subject supported by the grants or 

7 cooperative agreement authorized in subpart 1.’’; 

8 (E) in subsection (a)(4)(A)(ii), by striking 

9 ‘‘subparts 2, 4, and 5’’ and inserting ‘‘subparts 

10 2 and 5’’; and 

11 (F) in subsection (a)(4)(B), by striking 

12 ‘‘grants, contracts, or cooperative agreements au13 thorized under subparts 1, 2, and 3’’ each place 

14 it appears and inserting ‘‘grants and cooperative 

15 agreement authorized under subpart 1’’. 

16 (4) AUTHORIZATION OF APPROPRIATIONS.—Sec17 tion 778 (20 U.S.C. 1140r) is repealed. 

18 SEC. 704. REPEAL OF COLLEGE ACCESS CHALLENGE GRANT 

19 PROGRAM. 

20 Part E of title VII (20 U.S.C. 1141) is repealed. 

21 TITLE VIII—OTHER REPEALS 

22 SEC. 801. REPEAL OF ADDITIONAL PROGRAMS. 

23 (a) HIGHER EDUCATION ACT OF 1965.—Title VIII of 

24 the Higher Education Act of 1965 (20 U.S.C. 1161a et seq.) 

25 is repealed. 


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1 (b) HIGHER EDUCATION OPPORTUNITY ACT.—The 

2 Higher Education Opportunity Act (Public Law 110–315; 

3 122 Stat. 3078 et seq.) is amended by repealing sections 

4 802 and 803. 

5 (c) HIGHER EDUCATION AMENDMENTS OF 1998.—The 

6 Higher Education Amendments of 1998 (Public Law 105– 

7 244; 112 Stat. 1581 et seq.) is amended by repealing parts 

8 D and H of title VIII. 

9 (d) HIGHER EDUCATION AMENDMENTS OF 1992.—The 

10 Higher Education Amendments of 1992 (Public Law 102– 

11 325; 106 Stat. 448 et seq.) is amended by repealing part 

12 E of title XV. 

13 TITLE IX—AMENDMENTS TO 

14 OTHER LAWS 

15 PART A—EDUCATION OF THE DEAF ACT OF 1986 

16 SEC. 901. EDUCATION OF THE DEAF ACT OF 1986. 

17 (a) BOARD OF TRUSTEES.—Section 103(a)(1) of the 

18 Education of the Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) 

19 is amended— 

20 (1) in the matter preceding subparagraph (A), 

21 by striking ‘‘twenty-one’’ and inserting ‘‘twenty22 three’’; 

23 (2) in subparagraph (A)— 

24 (A) by striking ‘‘three public’’ and inserting 

25 ‘‘four public’’; 


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1 (B) by striking ‘‘one shall’’ and all that fol2 lows through ‘‘, and’’ and inserting ‘‘two shall be 

3 United States Senators, of whom one shall be ap4 pointed by the Majority Leader of the Senate 

5 and one shall be appointed by the Minority 

6 Leader of the Senate, and’’; and 

7 (C) by striking ‘‘appointed by the Speaker 

8 of the House of Representatives’’ and inserting ‘‘, 

9 of whom one shall be appointed by the Speaker 

10 of the House of Representatives and one shall be 

11 appointed by the Minority Leader of the House 

12 of Representatives’’; and 

13 (3) in subparagraph (B), by striking ‘‘eighteen’’ 

14 and inserting ‘‘nineteen’’. 

15 (b) LAURENT CLERC NATIONAL DEAF EDUCATION

16 CENTER.—Section 104(b)(5) of the Education of the Deaf 

17 Act of 1986 (20 U.S.C. 4304(b)(5)) is amended to read as 

18 follows: 

19 ‘‘(5) The University, for purposes of the elemen20 tary and secondary education programs carried out 

21 by the Clerc Center, shall— 

22 ‘‘(A)(i)(I) provide an assurance to the Sec23 retary that it has adopted and is implementing 

24 challenging State academic standards that meet 

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1 mentary and Secondary Education Act of 1965 

2 (20 U.S.C. 6311(b)(1)); 

3 ‘‘(II) demonstrate to the Secretary that the 

4 University is implementing a set of high-quality 

5 student academic assessments in mathematics, 

6 reading or language arts, and science, and any 

7 other subjects chosen by the University, that meet 

8 the requirements of section 1111(b)(2) of such 

9 Act (20 U.S.C. 6311(b)(2)); and 

10 ‘‘(III) demonstrate to the Secretary that the 

11 University is implementing an accountability 

12 system consistent with section 1111(c) of such 

13 Act (20 U.S.C. 6311(c)); or 

14 ‘‘(ii)(I) select the challenging State aca15 demic standards and State academic assessments 

16 of a State, adopted and implemented, as appro17 priate, pursuant to paragraphs (1) and (2) of 

18 section 1111(b) of such Act (20 U.S.C. 6311(b)); 

19 and 

20 ‘‘(II) adopt the accountability system, con21 sistent with section 1111(c) of such Act (20 

22 U.S.C. 6311(c)), of such State; and 

23 ‘‘(B) publicly report, except in a case in 

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1 sonally identifiable information about an indi2 vidual student— 

3 ‘‘(i) the results of the academic assess4 ments implemented under subparagraph 

5 (A); and 

6 ‘‘(ii) the results of the annual evalua7 tion of the programs at the Clerc Center, as 

8 determined using the accountability system 

9 adopted under subparagraph (A).’’. 

10 (c) REPEAL OF CULTURAL EXPERIENCES GRANTS

11 PROGRAM.—Part C of title I of the Education of the Deaf 

12 Act of 1986 (20 U.S.C. 4341) is repealed. 

13 (d) REPEAL OF AUTHORIZATION OF APPROPRIATIONS

14 FOR MONITORING AND EVALUATION.—Subsection (c) of sec15 tion 205 of the Education of the Deaf Act of 1986 (20 

16 U.S.C. 4355(c)) is repealed. 

17 (e) FEDERAL ENDOWMENT FUNDS.—Section 207 of the 

18 Education of the Deaf Act of 1986 (20 U.S.C. 4357) is 

19 amended— 

20 (1) in the heading of subsection (b), by striking 

21 ‘‘FEDERAL PAYMENTS’’ and inserting ‘‘PAYMENTS’’; 

22 (2) in subsection (b), by striking paragraphs (1) 

23 and (2) and inserting the following: 

24 ‘‘(1) From amounts provided by the Secretary 

25 from funds appropriated under subsections (a) and 


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1 (b) of section 212, respectively, the University and 

2 NTID may make payments, in accordance with this 

3 section, to the Federal endowment fund of the institu4 tion involved. 

5 ‘‘(2) Subject to paragraph (3), in any fiscal 

6 year, the total amount of payments made under para7 graph (1) to the Federal endowment fund may not ex8 ceed the total amount contributed to the fund from 

9 non-Federal sources during such fiscal year. 

10 ‘‘(3) For purposes of paragraph (2), the transfer 

11 of funds by an institution involved to the Federal en12 dowment fund from another endowment fund of such 

13 institution shall not be considered a contribution 

14 from a non-Federal source.’’; 

15 (3) in subsection (e), by striking ‘‘Federal pay16 ment’’ and inserting ‘‘payment under subsection (b)’’; 

17 (4) in subsection (f), in the matter preceding 

18 paragraph (1), by striking ‘‘Federal payments’’ and 

19 inserting ‘‘payments’’; 

20 (5) in subsection (g)(1), by striking ‘‘Federal 

21 payments to such fund’’ and inserting ‘‘payments 

22 made under subsection (b)’’; 

23 (6) by repealing subsection (h); and 

24 (7) by redesignating subsection (i) as subsection 

25 (h). 


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1 (f) REPEAL OF NATIONAL STUDY.—Section 211 of the 

2 Education of the Deaf Act of 1986 (20 U.S.C. 4360) is re3 pealed. 

4 (g) AUTHORIZATION OF APPROPRIATIONS.—Section 

5 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 

6 4360a) is amended— 

7 (1) in subsection (a), by striking ‘‘such sums as 

8 may be necessary for each of the fiscal years 2009 

9 through 2014’’ and inserting ‘‘$121,275,000 for each 

10 of the fiscal years 2019 through 2024’’; and 

11 (2) in subsection (b), by striking ‘‘such sums as 

12 may be necessary for each of the fiscal years 2009 

13 through 2014’’ and inserting ‘‘$70,016,000 for each of 

14 the fiscal years 2019 through 2024’’. 

15 (h) TECHNICAL AMENDMENTS.—The Education of the 

16 Deaf Act of 1986 is further amended— 

17 (1) in section 112(b)(3) (20 U.S.C. 4332(b)(3)), 

18 by striking ‘‘Education and Labor’’ and inserting 

19 ‘‘Education and the Workforce’’; 

20 (2) in section 203 (20 U.S.C. 4353)— 

21 (A) in the heading of subsection (a), by 

22 striking ‘‘GENERAL ACCOUNTING’’ and inserting 

23 ‘‘GOVERNMENT ACCOUNTABILITY’’; 


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1 (B) in subsection (a), by striking ‘‘General 

2 Accounting’’ and inserting ‘‘Government Ac3 countability’’; 

4 (C) in subsection (b)(3), by striking ‘‘Edu5 cation and Labor’’ and inserting ‘‘Education 

6 and the Workforce’’; and 

7 (D) in subsection (c)(2)(A), by striking 

8 ‘‘Education and Labor’’ and inserting ‘‘Edu9 cation and the Workforce’’; 

10 (3) in section 204 (20 U.S.C. 4354), by striking 

11 ‘‘Education and Labor’’ and inserting ‘‘Education 

12 and the Workforce’’; 

13 (4) in section 208(a) (20 U.S.C. 4359(a)), by 

14 striking ‘‘Education and Labor’’ and inserting ‘‘Edu15 cation and the Workforce’’; and 

16 (5) in section 210(b) (20 U.S.C. 4359b(b)), by 

17 striking ‘‘Education and Labor’’ and inserting ‘‘Edu18 cation and the Workforce’’. 


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1 PART B—TRIBALLY CONTROLLED COLLEGES AND 

2 UNIVERSITIES ASSISTANCE ACT OF 1978; 

3 DINE′ COLLEGE ACT 

4 SEC. 911. TRIBALLY CONTROLLED COLLEGES AND UNIVER5 SITIES ASSISTANCE ACT OF 1978. 

6 (a) DEFINITIONS.—Section 2 of the Tribally Con7 trolled Colleges and Universities Assistance Act of 1978 (25 

8 U.S.C. 1801) is amended— 

9 (1) in subsection (a)— 

10 (A) in paragraph (7), by adding ‘‘and’’ at 

11 the end; 

12 (B) in paragraph (8), by striking ‘‘; and’’ 

13 and inserting a period; and 

14 (C) by striking paragraph (9); and 

15 (2) in subsection (b)— 

16 (A) by amending paragraph (1) to read as 

17 follows: 

18 ‘‘(1) Such number shall be calculated based on 

19 the number of Indian students who are enrolled— 

20 ‘‘(A) at the conclusion of the third week of 

21 each academic term; or 

22 ‘‘(B) on the fifth day of a shortened pro23 gram beginning after the conclusion of the third 

24 full week of an academic term.’’; 


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1 (B) in paragraph (3), by striking ‘‘for pur2 poses of obtaining’’ and inserting ‘‘solely for the 

3 purpose of obtaining’’; and 

4 (C) by inserting after paragraph (5), the 

5 following: 

6 ‘‘(6) Enrollment data from the prior-prior aca7 demic year shall be used.’’. 

8 (b) AUTHORIZATION OF APPROPRIATIONS.—The Trib9 ally Controlled Colleges and Universities Assistance Act of 

10 1978 (25 U.S.C. 1801 et seq.) is amended by inserting after 

11 section 2 (25 U.S.C. 1801), the following: 

12 ‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS. 

13 ‘‘(a) TITLES I AND IV.—There are authorized to be 

14 appropriated $57,412,000 for each of fiscal years 2019 

15 through 2024 to carry out titles I and IV. 

16 ‘‘(b) TITLE V.—There are authorized to be appro17 priated $7,414,000 for each of fiscal years 2019 through 

18 2024 to carry out title V.’’.’’. 

19 (c) REPEAL OF PLANNING GRANTS.—Section 104 of 

20 the Tribally Controlled Colleges and Universities Assistance 

21 Act of 1978 (25 U.S.C. 1804a) is repealed. 

22 (d) GRANTS TO TRIBALLY CONTROLLED COLLEGES

23 AND UNIVERSITIES.—Section 107 of the Tribally Controlled 

24 Colleges and Universities Assistance Act of 1978 (25 U.S.C. 

25 1807) is amended— 


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1 (1) by striking subsection (c); and 

2 (2) by redesignating subsection (d) as subsection 

3 (c). 

4 (e) AMOUNT OF GRANTS.—Section 108(b)(1) of the 

5 Tribally Controlled Colleges and Universities Assistance Act 

6 of 1978 (25 U.S.C. 1808(b)(1)) is amended— 

7 (1) by striking ‘‘of the funds available for allot8 ment by October 15 or no later than 14 days after ap9 propriations become available’’ and inserting ‘‘ of the 

10 amounts appropriated for any fiscal year on or before 

11 July 1 of that fiscal year’’; and 

12 (2) by striking ‘‘January 1’’ and inserting ‘‘Sep13 tember 30’’; 

14 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

15 110(a) of the Tribally Controlled Colleges and Universities 

16 Assistance Act of 1978 (25 U.S.C. 1810(a)) is amended— 

17 (1) in paragraph (1)— 

18 (A) by striking ‘‘$3,200,000 for fiscal year 

19 2009 and’’; 

20 (B) by striking ‘‘for each of the five suc21 ceeding fiscal years’’; and 

22 (C) by inserting ‘‘from the amount made 

23 available under section 3(a) for each fiscal year’’ 

24 after ‘‘necessary’’; 


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1 (2) in paragraph (2), by striking ‘‘for fiscal year 

2 2009’’ and all that follows through the period at the 

3 end and inserting ‘‘from the amount made available 

4 under section 3(a) for each fiscal year.’’; 

5 (3) in paragraph (3), by striking ‘‘for fiscal year 

6 2009’’ and all that follows through the period at the 

7 end and inserting ‘‘from the amount made available 

8 under section 3(a) for each fiscal year.’’; and 

9 (4) in paragraph (4), by striking ‘‘2009’’ and in10 serting ‘‘2019’’. 

11 (g) RULES AND REGULATIONS.—The Tribally Con12 trolled Colleges and Universities Assistance Act of 1978 (25 

13 U.S.C. 1801 et seq.) is amended by striking section 115 (25 

14 U.S.C. 1815). 

15 (h) REPEAL OF ENDOWMENT PROGRAM.— 

16 (1) REPEAL.—Title III of the Tribally Con17 trolled Colleges and Universities Assistance Act of 

18 1978 (25 U.S.C. 1831 et seq.) is repealed. 

19 (2) TRANSITION.— 

20 (A) IN GENERAL.—Subject to subparagraph 

21 (B), title III of the Tribally Controlled Colleges 

22 and Universities Assistance Act of 1978 (25 

23 U.S.C. 1831 et seq.), as such title was in effect 

24 on the day before the date of the enactment of 

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1 ment fund established or funded under such title 

2 before such date of enactment, except that the 

3 Secretary of the Interior may not make any 

4 grants or Federal capital contributions under 

5 such title after such date. 

6 (B) TERMINATION.—Subparagraph (A) 

7 shall terminate on the date that is 20 years after 

8 the date of the enactment of this Act. On or after 

9 such date, a tribally controlled college or univer10 sity may use the corpus (including the Federal 

11 and institutional capital contribution) of any 

12 endowment fund described in such subparagraph 

13 to pay any expenses relating to the operation or 

14 academic programs of such college or university. 

15 (i) TRIBAL ECONOMIC DEVELOPMENT; AUTHORIZA16 TION OF APPROPRIATIONS.—Section 403 of the Tribally 

17 Controlled Colleges and Universities Assistance Act of 1978 

18 (25 U.S.C. 1852) is amended by striking ‘‘for fiscal year 

19 2009’’ and all that follows through the period at the end 

20 and inserting ‘‘from the amount made available under sec21 tion 3(a) for each fiscal year.’’. 

22 (j) TRIBALLY CONTROLLED POSTSECONDARY CAREER

23 AND TECHNICAL INSTITUTIONS.—Section 504 of the Trib24 ally Controlled Colleges and Universities Assistance Act of 

25 1978 (25 U.S.C. 1864) is amended by striking ‘‘for fiscal 


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1 year 2009’’ and all that follows through the period at the 

2 end and inserting ‘‘from the amount made available under 

3 section 3(b) for each fiscal year.’’ 

4 (k) CLERICAL AMENDMENTS.—The Tribally Controlled 

5 Colleges and Universities Assistance Act of 1978 (25 U.S.C. 

6 1801 et seq.), as amended by subsections (a) through (j), 

7 is further amended— 

8 (1) by striking ‘‘Bureau of Indian Affairs’’ each 

9 place it appears and inserting ‘‘Bureau of Indian 

10 Education’’; 

11 (2) by striking ‘‘Navajo Community College Act’’ 

12 each place it appears and inserting ‘‘Dine′ College 

13 Act’’; 

14 (3) by striking ‘‘colleges or universities’’ each 

15 place it appears, including in headings, and inserting 

16 ‘‘colleges and universities’’; and 

17 (4) in section 109 (25 U.S.C. 1809), by redesig18 nating the second subsection (c) as subsection (d). 

19 SEC. 912. DINE′ COLLEGE ACT. 

20 (a) SHORT TITLE.—The first section of Public Law 

21 92–189 is amended by striking ‘‘this Act may be cited as 

22 the ‘Navajo Community College Act’ ’’ and inserting ‘‘this 

23 Act may be cited as the ‘Dine′ College Act’ ’’. 

24 (b) REFERENCES.—Any reference to the Navajo Com25 munity College Act in any law (other than this Act), regulaVerDate Sep 11 2014 00:30 Feb 09, 2018 Jkt 079200 PO 00000 Frm 00599 Fmt 6652 Sfmt 6203 E:\BILLS\H4508.RH H4508

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1 tion, map, document, record, or other paper of the United 

2 States shall be deemed to be a reference to the Dine′ College 

3 Act. 

4 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 5 

5 of Public Law 92–189 is amended— 

6 (1) in subsection (a)(1), by striking ‘‘for fiscal 

7 years 2009 through 2014’’ and inserting ‘‘from the 

8 amount made available under subsection (b)(1) for 

9 each fiscal year’’; and 

10 (2) in subsection (b)(1), by striking ‘‘such sums 

11 as are necessary for fiscal years 2009 through 2014’’ 

12 and inserting ‘‘$13,600,000 for each of fiscal years 

13 2019 through 2024’’. 

14 PART C—GENERAL EDUCATION PROVISIONS ACT 

15 SEC. 921. RELEASE OF EDUCATION RECORDS TO FACILI16 TATE THE AWARD OF A RECOGNIZED POST17 SECONDARY CREDENTIAL. 

18 Section 444(b) of the General Education Provisions 

19 Act (20 U.S.C. 1232g(b)) is amended— 

20 (1) in paragraph (1)— 

21 (A) in subparagraph (K)(ii), by striking ‘‘; 

22 and’’ and inserting a semicolon; and 

23 (B) in subparagraph (L), by striking the 

24 period at the end and inserting ‘‘; and’’; and 


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1 (2) by inserting after subparagraph (L) the fol2 lowing: 

3 ‘‘(M) an institution of postsecondary education 

4 in which the student was previously enrolled, to 

5 which records of postsecondary coursework and credits 

6 are sent for the purpose of applying such coursework 

7 and credits toward completion of a recognized postsec8 ondary credential (as that term is defined in section 

9 3 of the Workforce Innovation and Opportunity Act 

10 (29 U.S.C. 3102)), upon condition that the student 

11 provides written consent prior to receiving such cre12 dential.’’. 


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Union Calendar No. 413 

115TH CONGRESS 

2D SESSION H. R. 4508 

[Report No. 115–550] 

A BILL 

To support students in completing an affordable 

for lifelong success. to enter the workforce with the skills they need postsecondary education that will prepare them 

FEBRUARY 8, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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