I 

115TH CONGRESS 

1ST SESSION H. R. 4508 

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 

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. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Promoting Real Opportunity, Success, and Prosperity 

6 through 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. 


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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. National Advisory Committee on Institutional Quality and Integrity. 

Sec. 113. Repeal of certain reporting requirements. 

Sec. 114. Programs on drug and alcohol abuse prevention. 

Sec. 115. Campus access for religious groups. 

Sec. 116. Secretarial prohibitions. 

Sec. 117. Ensuring equal treatment by governmental entities. 

PART C—COST OF HIGHER EDUCATION

Sec. 121. College Dashboard website. 

Sec. 122. Net price calculators. 

Sec. 123. Text book information. 

PART D—ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT

FINANCIAL ASSISTANCE

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

Sec. 132. Administrative data transparency. 

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 


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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. 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. 

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. Administrative expenses. 

Sec. 454. 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. 


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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. Deferral of loan repayment following active duty. 

Sec. 494D. 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. 

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. 


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1 SEC. 2. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Higher Education Act of 

7 1965 (20 U.S.C. 1001 et seq.). 

8 SEC. 3. GENERAL EFFECTIVE DATE. 

9 Except as otherwise provided in this Act or the 

10 amendments made by this Act, this Act and the amend11 ments made by this Act shall take effect on the date of 

12 enactment of this Act. 

13 TITLE I—GENERAL PROVISIONS 

14 PART A—DEFINITIONS 

15 SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU16 CATION. 

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

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

19 the following: 

20 ‘‘SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU21 CATION. 

22 ‘‘(a) INSTITUTION OF HIGHER EDUCATION.—For 

23 purposes of this Act, the term ‘institution of higher edu24 cation’ means an educational institution in any State 

25 that— 


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

2 who— 

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

4 a school providing secondary education, or the 

5 recognized equivalent of such a certificate, or 

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

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

8 school attendance in the State in which the in9 stitution is located; or 

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

11 in the institution and a secondary school; 

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

13 it maintains a physical location to provide a program 

14 of education beyond secondary education; 

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

16 accrediting agency or association; or 

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

18 has been granted preaccreditation status by such an 

19 agency or association that has been recognized by 

20 the Secretary for the granting of preaccreditation 

21 status, and the Secretary has determined that there 

22 is satisfactory assurance that the institution will 

23 meet the accreditation standards of such an agency 

24 or association within a reasonable time; and 

25 ‘‘(4) provides— 


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

2 institution awards a bachelor’s degree, graduate 

3 degree, or professional degree; 

4 ‘‘(B) not less than a 2-year educational 

5 program which is acceptable for full credit to6 wards a bachelor’s degree; or 

7 ‘‘(C) a non-degree program leading to a 

8 recognized educational credential that meets the 

9 definition of an eligible program under section 

10 481(b). 

11 ‘‘(b) ADDITIONAL LIMITATIONS.— 

12 ‘‘(1) PROPRIETARY INSTITUTIONS OF HIGHER

13 EDUCATION.— 

14 ‘‘(A) LENGTH OF EXISTENCE.—A propri15 etary institution shall not be considered an in16 stitution of higher education unless such insti17 tution has been in existence for at least 2 years. 

18 ‘‘(B) INSTITUTIONAL INELIGIBILITY FOR

19 MINORITY SERVING INSTITUTION PROGRAMS.— 

20 A proprietary institution shall not be considered 

21 an institution of higher education for the pur22 poses of any program under title III or V. 

23 ‘‘(2) POSTSECONDARY VOCATIONAL INSTITU24 TIONS.—A nonprofit or public institution that offers 

25 only non-degree programs described in subsection 


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

2 higher education unless such institution has been in 

3 existence for at least 2 years. 

4 ‘‘(3) LIMITATIONS BASED ON MANAGEMENT.— 

5 An institution shall not be considered an institution 

6 of higher education if— 

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

8 institution that has the power, by contract or 

9 ownership interest, to direct or cause the direc10 tion of the management or policies of the insti11 tution, has filed for bankruptcy; or 

12 ‘‘(B) the institution, the institution’s 

13 owner, or the institution’s chief executive officer 

14 has been convicted of, or has pled nolo 

15 contendere or guilty to, a crime involving the 

16 acquisition, use, or expenditure of Federal 

17 funds, or has been judicially determined to have 

18 committed a crime involving the acquisition, 

19 use, or expenditure involving Federal funds. 

20 ‘‘(4) LIMITATION ON COURSE OF STUDY OR EN21 ROLLMENT.—An institution shall not be considered 

22 an institution of higher education if such institu23 tion— 

24 ‘‘(A) offers more than 50 percent of such 

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1 cation, unless the institution is an institution 

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

3 the Carl D. Perkins Career and Technical Edu4 cation Act of 2006; 

5 ‘‘(B) enrolls 50 percent or more of the in6 stitution’s students in correspondence education 

7 courses, unless the institution is an institution 

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

9 such Act, except that the Secretary, at the re10 quest of the institution, may waive the applica11 bility of this subparagraph to the institution for 

12 good cause, as determined by the Secretary in 

13 the case of an institution of higher education 

14 that provides a 2- or 4-year program of instruc15 tion (or both) for which the institution awards 

16 an associate or baccalaureate degree, respec17 tively; 

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

19 more than 25 percent of the students are incar20 cerated, except that the Secretary may waive 

21 the limitation contained in this subparagraph 

22 for an institution that provides a 2- or 4-year 

23 program of instruction (or both) for which the 

24 institution awards an associate’s degree or a 


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1 postsecondary certificate, or a bachelor’s de2 gree, respectively; or 

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

4 more than 50 percent of the students either do 

5 not have a secondary school diploma or its rec6 ognized equivalent, or do not meet the require7 ments of section 484(d), and does not provide 

8 a 2- or 4-year program of instruction (or both) 

9 for which the institution awards an associate’s 

10 degree or a bachelor’s degree, respectively, ex11 cept that the Secretary may waive the limita12 tion contained in this subparagraph if an insti13 tution demonstrates to the satisfaction of the 

14 Secretary that the institution exceeds such limi15 tation because the institution serves, through 

16 contracts with Federal, State, or local govern17 ment agencies, significant numbers of students 

18 who do not have a secondary school diploma or 

19 its recognized equivalent or do not meet the re20 quirements of section 484(d). 

21 ‘‘(c) LIST OF ACCREDITING AGENCIES.—For pur22 poses of this section, the Secretary shall publish a list of 

23 nationally recognized accrediting agencies or associations 

24 that the Secretary determines, pursuant to subpart 2 of 


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1 part H of title IV, to be reliable authority as to the quality 

2 of the education offered. 

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

4 for the purposes of participation in title IV, an institu5 tion’s qualification as an institution of higher education 

6 in accordance with the requirements of subpart 3 of part 

7 H of title IV. 

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

9 education shall not be considered to meet the definition 

10 of an institution of higher education for the purposes of 

11 participation in title IV if such institution is removed from 

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

13 pursuant to part H of title IV. 

14 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in sub15 section (a)(2) relating to State authorization shall be con16 strued to— 

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

18 or requirements on how States authorize out-of19 State institutions of higher education; or 

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

21 to collaborate or participate in a reciprocity agree22 ment to permit an institution within such State to 

23 meet any other State’s authorization requirements 

24 for out-of-State institutions.’’. 


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1 SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 

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

3 amended by striking section 102 (20 U.S.C. 1002) and 

4 inserting the following: 

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

6 ‘‘(a) INSTITUTIONS OUTSIDE THE UNITED

7 STATES.— 

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

9 D or E of title IV, the term ‘institution of higher 

10 education’ includes an institution outside the United 

11 States (referred to in this part as a ‘foreign institu12 tion’) that is comparable to an institution of higher 

13 education as defined in section 101 and has been ap14 proved by the Secretary for purposes of part D or 

15 E of title IV, consistent with the requirements of 

16 section 452(d). 

17 ‘‘(2) QUALIFICATIONS.—Only for the purposes 

18 of students receiving aid under title IV, an institu19 tion of higher education may not qualify as a foreign 

20 institution under paragraph (1), unless such institu21 tion— 

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

23 educational program beyond secondary edu24 cation by the education ministry (or comparable 

25 agency) of the country in which the institution 

26 is located; 


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1 ‘‘(B) is not located in a State; 

2 ‘‘(C) except as provided with respect to 

3 clinical training offered by the institution under 

4 600.55(h)(1), section 600.56(b), or section 

5 600.57(a)(2) of title 34, Code of Federal Regu6 lations (as in effect pursuant to subsection 

7 (b))— 

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

9 educational program in the United States 

10 to students who are citizens of the United 

11 States; 

12 ‘‘(ii) has no written arrangements 

13 with an institution or organization located 

14 in the United States under which students 

15 enrolling at the foreign institution would 

16 take courses from an institution located in 

17 the United States; and 

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

19 in any course offered by the foreign insti20 tution in the United States, including re21 search, work, internship, externship, or 

22 special studies within the United States, 

23 except that independent research done by 

24 an individual student in the United States 

25 for not more than one academic year is 


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1 permitted, if the research is conducted dur2 ing the dissertation phase of a doctoral 

3 program under the guidance of faculty and 

4 the research is performed at a facility in 

5 the United States; 

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

7 recognized educational credentials in accordance 

8 with section 600.54(e) of title 34, Code of Fed9 eral Regulations (as in effect pursuant to sub10 section (b)) that are officially recognized by the 

11 country in which the institution is located; and 

12 ‘‘(E) meets the applicable requirements of 

13 subsection (b). 

14 ‘‘(3) INSTITUTIONS WITH LOCATIONS IN AND OUT15 SIDE THE UNITED STATES.—In a case of an institution 

16 of higher education consisting of two or more locations 

17 offering all or part of an educational program that are 

18 directly or indirectly under common ownership and that 

19 enrolls students both within a State and outside the 

20 United States, and the number of students who would be 

21 eligible to receive funds under title IV attending locations 

22 of such institution outside the United States, is at least 

23 twice the number of students enrolled within a State— 

24 ‘‘(A) the locations outside the United States shall 

25 apply to participate as one or more foreign institutions 


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1 and shall meet the requirements of paragraph (1) of this 

2 definition, and the other requirements of this part; and 

3 ‘‘(B) the locations within a State shall be treated as 

4 an institution of higher education under section 101. 

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

6 ‘‘(1) FORCE AND EFFECT.— 

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

8 34, Code of Federal Regulations, referred to in 

9 subparagraph (B), as such provisions were in 

10 effect on the day before the date of the enact11 ment of the PROSPER Act, shall have the 

12 force and effect of enacted law until changed by 

13 such law and are deemed to be incorporated in 

14 this subsection as though set forth fully in this 

15 subsection. 

16 ‘‘(B) APPLICABLE PROVISIONS.—The pro17 visions of title 34, Code of Federal Regulations, 

18 referred to in this subparagraph are the fol19 lowing: 

20 ‘‘(i) Subject to paragraph (2)(A), sec21 tion 600.41(e)(3). 

22 ‘‘(ii) Subject to paragraph (2)(B), sec23 tion 600.52. 

24 ‘‘(iii) Subject to paragraph (2)(C), 

25 section 600.54, except that paragraph (1) 


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1 of subsection (a) of such section shall have 

2 no force or effect. 

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

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

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

6 of such section shall have no force or ef7 fect. 

8 ‘‘(v) Section 600.56. 

9 ‘‘(vi) Subject to paragraph (2)(F), 

10 section 600.57. 

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

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

13 668.23(h), except that clause (iii) of para14 graph (1) of such section shall have no 

15 force or effect. 

16 ‘‘(viii) Section 668.5. 

17 ‘‘(C) APPLICATION TO FEDERAL ONE

18 LOANS.—With respect to the provisions of title 

19 34, Code of Federal Regulations, referred to 

20 subparagraph (B), as modified by paragraph 

21 (2) any reference to a loan made under part D 

22 of title IV shall also be treated as a reference 

23 to a loan made under part E of title IV. 


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

2 apply to the provisions of title 34, Code of Federal 

3 Regulations, referred to in paragraph (1)(B): 

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

5 of title 34, Code of Federal Regulations (as in 

6 effect pursuant to paragraph (1)), if the basis 

7 for the loss of eligibility of a foreign graduate 

8 medical school to participate in programs under 

9 title 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 

15 sentence, in the case of a foreign graduate med16 ical school that opted to have the Educational 

17 Commission for Foreign Medical Graduates cal18 culate and provide the pass rates directly to the 

19 Secretary for the preceding calendar year as 

20 permitted under section 600.55(d)(2) of title 

21 34, Code of Federal Regulations (as in effect 

22 pursuant to paragraph (1)), in lieu of the for23 eign graduate medical school providing pass 

24 rate data to the Secretary under section 

25 600.55(d)(1)(iii) of title 34, Code of Federal 


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1 Regulations (as in effect pursuant to paragraph 

2 (1)), the Educational Commission for Foreign 

3 Medical Graduates’ calculations of the school’s 

4 rates are conclusive; and the presiding official 

5 has no authority to consider challenges to the 

6 computation of the rate or rates by the Edu7 cational Commission for Foreign Medical Grad8 uates. 

9 ‘‘(B) Notwithstanding section 600.52 of 

10 title 34, Code of Federal Regulations (as in ef11 fect pursuant to paragraph (1)), in this Act, the 

12 term ‘foreign institution’ means an institution 

13 described in subsection (a). 

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

15 title 34, Code of Federal Regulations (as in ef16 fect pursuant to paragraph (1)), to be eligible 

17 to participate in programs under title IV, for18 eign institution may not enter into a written ar19 rangement under which an institution or orga20 nizations that is not eligible to participate in 

21 programs under title IV provides more than 25 

22 percent of the program of study for one or more 

23 of the eligible foreign institution’s programs. 

24 ‘‘(D) Notwithstanding section 

25 600.55(f)(1)(ii) of title 34, Code of Federal 


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1 Regulations (as in effect pursuant to paragraph 

2 (1)), for a foreign graduate medical school out3 side of Canada, for Step 1, Step 2–CS, and 

4 Step 2–CK, or the successor examinations, of 

5 the United States Medical Licensing Examina6 tion administered by the Educational Commis7 sion for Foreign Medical Graduate, at least 75 

8 percent of the school’s students and graduates 

9 who receive or have received title IV funds in 

10 order to attend that school, and who completed 

11 the final of these three steps of the examination 

12 in the year preceding the year for which any of 

13 the school’s students seeks a loan under title IV 

14 shall have received an aggregate passing score 

15 on the exam as a whole; or except as provided 

16 in section 600.55(f)(2) of title 34, Code of Fed17 eral Regulations (as in effect pursuant to para18 graph (1)), for no more than two consecutive 

19 years, at least 70 percent of the individuals who 

20 were students or graduates of the graduate 

21 medical school outside the United States or 

22 Canada (who receive or have received title IV 

23 funds in order to attend that school) taking the 

24 United States Medical Licensing Examination 

25 exams in the year preceding the year for which 


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1 any of the school’s students seeks a loan under 

2 title IV shall have received an aggregate pass3 ing score on the exam as a whole. 

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

5 34, Code of Federal Regulations (as in effect 

6 pursuant to paragraph (1)), not more than 25 

7 percent of the graduate medical educational 

8 program offered to United States students, 

9 other than the clinical training portion of the 

10 program, may be located outside of the country 

11 in which the main campus of the foreign grad12 uate medical school is located. 

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

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

15 effect pursuant to paragraph (1)), a nursing 

16 school shall reimburse the Secretary for the 

17 cost of any loan defaults for current and former 

18 students during the previous fiscal year. 

19 ‘‘(G) Notwithstanding section 

20 668.23(h)(1)(ii), of title 34, Code of Federal 

21 Regulations (as in effect pursuant to paragraph 

22 (1)), a foreign institution that received 

23 $500,000 or more in funds under title IV dur24 ing its most recently completed fiscal year shall 

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1 pleted fiscal year in which it received such 

2 funds, audited financial statements prepared in 

3 accordance with generally accepted accounting 

4 principles of the institution’s home country pro5 vided that such accounting principles are com6 parable to the International Financial Report7 ing Standards. 

8 ‘‘(H) Notwithstanding section 

9 668.23(h)(1)(ii), of title 34, Code of Federal 

10 Regulations (as in effect pursuant to paragraph 

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

12 principles of an institution’s home country are 

13 not comparable to International Financial Re14 porting Standards shall the institution be re15 quired to submit corresponding audited finan16 cial statements that meet the requirements of 

17 section 668.23(d) of title 34, Code of Federal 

18 Regulations (as in effect pursuant to paragraph 

19 (1)). 

20 ‘‘(c) SPECIAL RULES.— 

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

22 school at which student test passage rates are below 

23 the minimum requirements set forth in subsection 

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

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1 ble to participate in programs under part D or E of 

2 title IV in the fiscal year subsequent to that con3 secutive two year period and such institution shall 

4 regain eligibility to participate in programs under 

5 such part only after demonstrating compliance with 

6 requirements under section 600.55 of title 34, Code 

7 of Federal Regulations (as in effect pursuant to sub8 section (b)) for one full calendar year subsequent to 

9 the fiscal year the institution became ineligible un10 less, within 30 days of receiving notification from 

11 the Secretary of the loss of eligibility under this 

12 paragraph, the institution appeals the loss of its eli13 gibility to the Secretary. The Secretary shall issue a 

14 decision on any such appeal within 45 days after its 

15 submission. Such decision may permit the institution 

16 to continue to participate in programs under part D 

17 or E of title IV, if— 

18 ‘‘(A) the institution demonstrates to the 

19 satisfaction of the Secretary that the test pas20 sage rates on which the Secretary has relied are 

21 not accurate, and that the recalculation of such 

22 rates would result in rates that exceed the re23 quired minimum for any of these two calendar 

24 years; or 


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1 ‘‘(B) there are, in the judgement of the 

2 Secretary, mitigating circumstances that would 

3 make the application of this paragraph inequi4 table. 

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

6 this subsection, a foreign graduate medical school 

7 loses eligibility to participate in the programs under 

8 part D or E of title IV, then a student at such insti9 tution may, notwithstanding such loss of eligibility, 

10 continue to be eligible to receive a loan under such 

11 part while attending such institution for the aca12 demic year succeeding the academic year in which 

13 such loss of eligibility occurred. 

14 ‘‘(3) TREATMENT OF CLINICAL TRAINING PRO15 GRAMS.— 

16 ‘‘(A) IN GENERAL.—Clinical training pro17 grams operated by a foreign graduate medical 

18 school with an accredited hospital or clinic in 

19 the United States or at an institution in Can20 ada accredited by the Liaison Committee on 

21 Medical Education shall be deemed to be ap22 proved and shall not require the prior approval 

23 of the Secretary. 

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

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1 eign graduate medical school located in a for2 eign country other than the country in which 

3 the main campus is located, in the United 

4 States, or at an institution in Canada accred5 ited by the Liaison Committee on Medical Edu6 cation, shall not require an on-site evaluation or 

7 specific approval by the institution’s medical ac8 crediting agency if the location is a teaching 

9 hospital accredited by and located within a for10 eign country approved by the National Com11 mittee on Foreign Medical Education and Ac12 creditation. 

13 ‘‘(d) FAILURE TO RELEASE INFORMATION.—An in14 stitution outside the United States that does not provide 

15 to the Secretary such information as may be required by 

16 this section shall be ineligible to participate in the loan 

17 program under part D or E of title IV. 

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

19 481(b)(2), an eligible program described in section 600.54 

20 of title 34, Code of Federal Regulations (as in effect pur21 suant to subsection (b)) may not offer more than 50 per22 cent of courses through telecommunications.’’. 


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1 SEC. 103. ADDITIONAL DEFINITIONS. 

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

3 1003(5)(B)) is amended by striking ‘‘section 102’’ and in4 serting ‘‘section 101 or 102’’. 

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

6 (20 U.S.C. 1003(7)) is amended to read as follows: 

7 ‘‘(7) CORRESPONDENCE EDUCATION.—The 

8 term ‘correspondence education’ means education 

9 that is provided by an institution of higher education 

10 under which— 

11 ‘‘(A) the institution provides instructional 

12 materials (including examinations on the mate13 rials) by mail or electronic transmission to stu14 dents who are separated from the instructor; 

15 and 

16 ‘‘(B) interaction between the institution 

17 and the student is limited and the academic in18 struction by faculty is not regular and sub19 stantive, as assessed by the institution’s accred20 iting agency or association under section 496.’’. 

21 (c) EARLY CHILDHOOD EDUCATION PROGRAM.— 

22 Section 103(8) (20 U.S.C. 1003(8)) is amended to read 

23 as follows: 

24 ‘‘(8) EARLY CHILDHOOD EDUCATION PRO25 GRAM.—The term ‘early childhood education pro26 gram’ means a program— 


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1 ‘‘(A) that serves children of a range of 

2 ages from birth through age five that addresses 

3 the children’s cognitive (including language, 

4 early literacy, and early mathematics), social, 

5 emotional, and physical development; and 

6 ‘‘(B) that is— 

7 ‘‘(i) a Head Start program or an 

8 Early Head Start program carried out 

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

10 et seq.), including a migrant or seasonal 

11 Head Start program, an Indian Head 

12 Start program, or a Head Start program 

13 or an Early Head Start program that also 

14 receives State funding; 

15 ‘‘(ii) a State licensed or regulated 

16 child care program; 

17 ‘‘(iii) a State-funded prekindergarten 

18 or child care program; 

19 ‘‘(iv) a program authorized under sec20 tion 619 of the Individuals with Disabil21 ities Education Act or part C of such Act; 

22 or 

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

24 educational agency.’’. 


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

2 1003(13)) is amended to read as follows: 

3 ‘‘(13) NONPROFIT.— 

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

5 respect to a school, agency, organization, or in6 stitution means a school, agency, organization, 

7 or institution owned and operated by one or 

8 more nonprofit corporations or associations, no 

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

10 lawfully inure, to the benefit of any private 

11 shareholder or individual. 

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

13 respect to foreign institution means— 

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

15 operated only by one or more nonprofit 

16 corporations or associations; and 

17 ‘‘(ii)(I) if a recognized tax authority 

18 of the institution’s home country is recog19 nized by the Secretary for purposes of 

20 making determinations of an institution’s 

21 nonprofit status for purposes of title IV, 

22 the institution is determined by that tax 

23 authority to be a nonprofit educational in24 stitution; or 


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

2 the institution’s home country is recog3 nized by the Secretary for purposes of 

4 making determinations of an institution’s 

5 nonprofit status for purposes of title IV, 

6 the foreign institution demonstrates to the 

7 satisfaction of the Secretary that it is a 

8 nonprofit educational institution.’’. 

9 (e) COMPETENCY-BASED EDUCATION; COMPETENCY10 BASED EDUCATION PROGRAM.—Section 103 (20 U.S.C. 

11 1003) is amended by adding at the end the following: 

12 ‘‘(25) COMPETENCY-BASED EDUCATION; COM13 PETENCY-BASED EDUCATION PROGRAM.— 

14 ‘‘(A) COMPETENCY-BASED EDUCATION.— 

15 Except as otherwise provided, the term ‘com16 petency-based education’ means education 

17 that— 

18 ‘‘(i) measures academic progress and 

19 attainment— 

20 ‘‘(I) by direct assessment of a 

21 student’s level of mastery of com22 petencies; 

23 ‘‘(II) by expressing a student’s 

24 level of mastery of competencies in 


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1 terms of equivalent credit or clock 

2 hours; or 

3 ‘‘(III) by a combination of the 

4 methods described in subclauses (I) or 

5 (II) and credit or clock hours; and 

6 ‘‘(ii) provides the educational content, 

7 activities, and resources, including sub8 stantive instructional interaction, including 

9 by faculty, and regular support by the in10 stitution, necessary to enable students to 

11 learn or develop what is required to dem12 onstrate and attain mastery of such com13 petencies, as assessed by the accrediting 

14 agency or association of the institution of 

15 higher education. 

16 ‘‘(B) COMPETENCY-BASED EDUCATION

17 PROGRAM.—Except as otherwise provided, the 

18 term ‘competency-based education program’ 

19 means a postsecondary program offered by an 

20 institution of higher education that— 

21 ‘‘(i) provides competency-based edu22 cation, which upon a student’s demonstra23 tion or mastery of a set of competencies 

24 identified and required by the institution, 

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1 cate, degree, or other recognized edu2 cational credential; 

3 ‘‘(ii) has a method to differentiate be4 tween knowledge that a student acquired 

5 prior to enrollment in the competency6 based education program and knowledge 

7 that the student acquired as a result of en8 rollment in such program; and 

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

10 that an institution can determine, based on 

11 the method of measurement selected by the 

12 institution under subparagraph (A)(i), 

13 what constitutes a full-time, three-quarter 

14 time, half-time, and less than half-time 

15 workload for the purposes of awarding and 

16 administering assistance under title IV of 

17 this Act, or assistance provided under an18 other provision of Federal law to attend an 

19 institution of higher education. 

20 ‘‘(C) COMPETENCY DEFINED.—In this 

21 paragraph, the term ‘competency’ means the 

22 knowledge, skill, or characteristic demonstrated 

23 by a student in a subject area.’’. 


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

2 U.S.C. 1003) is amended by adding at the end the fol3 lowing: 

4 ‘‘(26) PAY FOR SUCCESS INITIATIVE.—The 

5 term ‘pay for success initiative’ has the meaning 

6 given the term in section 8101 of the Elementary 

7 and Secondary Education Act of 1965 (20 U.S.C. 

8 7801).’’. 

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

10 1003) is amended by adding at the end the following: 

11 ‘‘(27) EVIDENCE-BASED.—The term ‘evidence12 based’ has the meaning given the term in section 

13 8101(21)(A) of the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 7801(21)(A)), except 

15 that such term shall also apply to institutions of 

16 higher education.’’. 

17 SEC. 104. REGULATORY RELIEF. 

18 (a) REGULATIONS REPEALED.— 

19 (1) REPEAL.—The following regulations (in20 cluding any supplement or revision to such regula21 tions) are repealed and shall have no legal effect: 

22 (A) DEFINITION OF CREDIT HOUR.—The 

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

24 600.2 of title 34, Code of Federal Regulations, 

25 as added by the final regulations published by 


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1 the Department of Education in the Federal 

2 Register on October 29, 2010 (75 Fed. Reg. 

3 66946). 

4 (B) GAINFUL EMPLOYMENT.—Sections 

5 600.10(c), 600.20(d), 668.401 through 

6 668.415, 668.6, and 668.7, of title 34, Code of 

7 Federal Regulations, as added or amended by 

8 the final regulations published by the Depart9 ment of Education in the Federal Register on 

10 October 31, 2014 (79 Fed. Reg. 64889 et seq.). 

11 (C) BORROWER DEFENSE.—Sections 

12 668.41, 668.90, 668.93, 668.171, 668.175, 

13 674.33, 682.211, 682.402(d), 682.405, 

14 682.410, 685.200, 685.205, 685.206, 

15 685.212(k), 685.214, 685.215, 685.222, appen16 dix A to subpart B of part 685, 685.300, 

17 685.308, of title 34, Code of Federal Regula18 tions, as added or amended by the final regula19 tions published by the Department of Edu20 cation in the Federal Register on November 1, 

21 2016 (81 Fed. Reg. 75926 et seq.). 

22 (2) EFFECT OF REPEAL.—To the extent that 

23 regulations repealed— 

24 (A) by subparagraph (A) or subparagraph 

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


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

2 of the regulations that were in effect on June 

3 30, 2011, and were so amended are restored 

4 and revived as if the regulations repealed by 

5 such subparagraph had not taken effect; and 

6 (B) by paragraph (1)(C) amended regula7 tions that were in effect on October 31, 2016, 

8 the provisions of the regulations that were in 

9 effect on October 31, 2016, and were so amend10 ed are restored and revived as if the regulations 

11 repealed by paragraph (1)(C) had not taken ef12 fect. 

13 (b) CERTAIN REGULATIONS AND OTHER ACTIONS

14 PROHIBITED.— 

15 (1) GAINFUL EMPLOYMENT.—The Secretary of 

16 Education shall not, on or after the date of enact17 ment of this Act, promulgate or enforce any regula18 tion or rule with respect to the definition or applica19 tion of the term ‘‘gainful employment’’ for any pur20 pose under the Higher Education Act of 1965 (20 

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

22 (2) CREDIT HOUR.—The Secretary of Edu23 cation shall not, on or after the date of enactment 

24 of this Act, promulgate or enforce any regulation or 

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1 it hour’’ for any purpose under the Higher Edu2 cation Act of 1965 (20 U.S.C. 1001 et seq.). 

3 (3) POSTSECONDARY INSTITUTION RATINGS

4 SYSTEM.—The Secretary of Education shall not 

5 carry out, develop, refine, promulgate, publish, im6 plement, administer, or enforce a postsecondary in7 stitution ratings system or any other performance 

8 system to rate institutions of higher education (as 

9 defined in section 101 or 102 of the Higher Edu10 cation Act of 1965 (20 U.S.C. 1001; 1002)). 

11 PART B—ADDITIONAL GENERAL PROVISIONS 

12 SEC. 111. FREE SPEECH PROTECTIONS. 

13 Section 112 (20 U.S.C. 1011a) is amended— 

14 (1) in subsection (a)— 

15 (A) by redesignating paragraph (2) as 

16 paragraph (3); and 

17 (B) by inserting after paragraph (1) the 

18 following: 

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

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

21 codes are inherently at odds with the freedom of 

22 speech guaranteed by the First Amendment of the 

23 Constitution; and 

24 ‘‘(B) no public institution directly or indirectly 

25 receiving financial assistance under this Act should 


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1 restrict the speech of such institution’s students 

2 through such zones or codes.’’; 

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

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

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

7 ‘‘(b) DISCLOSURE OF FREE SPEECH POLICIES.—No 

8 institution of higher education shall be eligible to receive 

9 funds under this Act, including participation in any pro10 gram under title IV, unless the institution certifies to the 

11 Secretary that the institution has annually disclosed to 

12 current and prospective students any policies held by the 

13 institutions related to protected speech on campus, includ14 ing policies limiting where and when such speech may 

15 occur.’’. 

16 SEC. 112. NATIONAL ADVISORY COMMITTEE ON INSTITU17 TIONAL QUALITY AND INTEGRITY. 

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

19 (1) by striking ‘‘section 102’’ each place it ap20 pears and inserting ‘‘section 101’’; 

21 (2) in subsection (b)— 

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

23 as provided in paragraph (5), the term’’ and in24 serting ‘‘The term’’; 


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1 (B) by striking paragraph (5) and insert2 ing the following: 

3 ‘‘(5) SECRETARIAL APPOINTEES.—The Sec4 retary may remove any member who was appointed 

5 under paragraph (1)(A) by a predecessor of the Sec6 retary and may fill the vacancy created by such re7 moval in accordance with paragraphs (3) and (4).’’. 

8 (3) in subsection (c)— 

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

10 the end; 

11 (B) in paragraph (3) by striking the semi12 colon at the end an inserting a period; and 

13 (C) by striking paragraphs (4) through 

14 (6); 

15 (4) in subsection (e)(2)(D) by striking ‘‘, in16 cluding any additional functions established by the 

17 Secretary through regulation’’; and 

18 (5) in subsection (f), by striking ‘‘September 

19 30, 2017’’ and inserting ‘‘September 30, 2024’’. 

20 SEC. 113. REPEAL OF CERTAIN REPORTING REQUIRE21 MENTS. 

22 (a) REPEALS.—The following provisions of the High23 er Education Act of 1965 (20 U.S.C. 1001 et seq.) are 

24 repealed: 

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


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

2 (b) CONFORMING AMENDMENTS.— 

3 (1) section 118 is redesignated as section 117; 

4 (2) sections 120, 121, 122, and 123 are redes5 ignated as sections 118, 119, 120, and 121, respec6 tively; and 

7 (3) section 485(f)(1)(H) (20 U.S.C. 

8 1092(f)(1)(H)) is amended by striking ‘‘section 

9 120’’ and inserting ‘‘section 118’’. 

10 SEC. 114. PROGRAMS ON DRUG AND ALCOHOL ABUSE PRE11 VENTION. 

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

13 as follows: 

14 ‘‘SEC. 118. DRUG AND ALCOHOL ABUSE PREVENTION. 

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

16 higher education participating in any program under this 

17 Act shall adopt and implement a program to prevent the 

18 use of illicit drugs and the abuse of alcohol by students 

19 and employees that, at a minimum, includes the annual 

20 distribution to each student and employee of— 

21 ‘‘(1) institutional standards of conduct and 

22 sanctions that clearly prohibit and address the un23 lawful possession, use, or distribution of illicit drugs 

24 and alcohol by students and employees; and 


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1 ‘‘(2) the description of any drug or alcohol 

2 counseling, treatment, rehabilitation, or re-entry pro3 grams that are available to students or employees. 

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

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

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

7 a copy of the institutional standards described under sub8 section (a)(1) and information regarding any programs 

9 described in subsection (a)(2).’’. 

10 SEC. 115. CAMPUS ACCESS FOR RELIGIOUS GROUPS. 

11 Part B of title I (20 U.S.C. 1011 et seq.) (as amend12 ed by sections 111 through 114 of this part) is amended 

13 by adding at the end the following: 

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

15 ‘‘None of the funds made available under this Act 

16 may be provided to any public institution of higher edu17 cation that denies to a religious student organization any 

18 right, benefit, or privilege that is generally afforded to 

19 other student organizations at the institution (including 

20 full access to the facilities of the institution and official 

21 recognition of the organization by the institution) because 

22 of the religious beliefs, practices, speech, membership 

23 standards, or standards of conduct of the religious student 

24 organization.’’. 


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1 SEC. 116. SECRETARIAL PROHIBITIONS. 

2 Part B of title I (20 U.S.C. 1011 et seq.) (as amend3 ed by sections 111 through 115 of this part) is amended 

4 by adding at the end the following: 

5 ‘‘SEC. 123. SECRETARIAL PROHIBITIONS. 

6 ‘‘(a) IN GENERAL.—Nothing in this Act shall be con7 strued to authorize or permit the Secretary to promulgate 

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

9 authority granted to the Secretary under this Act. 

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

11 any term that is used in this Act in a manner that is in12 consistent with the scope of this Act, including through 

13 regulation or guidance. 

14 ‘‘(c) REQUIREMENTS.—The Secretary shall not im15 pose, on an institution or State as a condition of participa16 tion in any program under this Act, any requirement that 

17 exceeds the scope of the requirements explicitly set forth 

18 in this Act for such program.’’. 

19 SEC. 117. ENSURING EQUAL TREATMENT BY GOVERN20 MENTAL ENTITIES. 

21 Part B of title I (20 U.S.C. 1011 et seq.) (as amend22 ed by sections 111 through 116 of this part) is further 

23 amended by adding at the end the following: 


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1 ‘‘SEC. 124. ENSURING EQUAL TREATMENT BY GOVERN2 MENTAL ENTITIES. 

3 ‘‘(a) IN GENERAL.—Notwithstanding any other pro4 vision of law, no government entity shall take any adverse 

5 action against an institution of higher education that re6 ceives funding under title IV, if such adverse action— 

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

8 that— 

9 ‘‘(i) is a department, agency, or instrumen10 tality of the Federal Government; or 

11 ‘‘(ii) receives Federal funds; or 

12 ‘‘(B) would affect commerce with foreign na13 tions, among the several States, or with Indian 

14 Tribes; and 

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

16 the institution for acts or omissions by the institu17 tion that are in furtherance of its religious mission 

18 or are related to the religious affiliation of the insti19 tution. 

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

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

22 an institution of higher education that receives funding 

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

24 any court. The court shall grant any appropriate equitable 

25 relief, including injunctive or declaratory relief. 


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1 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be construed to alter or amend— 

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

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

5 ‘‘(2) section 182 of the Elementary and Sec6 ondary Education Amendments Act of 1966 (42 

7 U.S.C. 2000d–5); or 

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

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

10 2000d–6) 

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

12 ‘‘(1) ADVERSE ACTION.—The term ‘adverse ac13 tion’ includes, with respect to an institution of high14 er education or the past, current, or prospective stu15 dents of such institution— 

16 ‘‘(A) the denial or threat of denial of fund17 ing, including grants, scholarships, or loans; 

18 ‘‘(B) the denial or threat of denial of ac19 cess to facilities or programs; 

20 ‘‘(C) the withholding or threat of with21 holding of any licenses, permits, certifications, 

22 accreditations, contracts, cooperative agree23 ments, grants, guarantees, tax-exempt status, 

24 or exemptions; or 


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

2 of such other penalty or denial, of an otherwise 

3 available benefit. 

4 ‘‘(2) GOVERNMENT ENTITY.—The term ‘gov5 ernment entity’ means— 

6 ‘‘(A) any department, agency, or instru7 mentality of the Federal Government; 

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

9 State, or any agency or instrumentality thereof; 

10 and 

11 ‘‘(C) any interstate or other inter-govern12 mental entity. 

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

14 The term ‘institution of higher education’ has the 

15 meaning given the term in section 101 or 102. 

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

17 mission’ includes an institution of higher education’s 

18 religious tenets, beliefs, or teachings, and any poli19 cies or decisions related to such tenets, beliefs, or 

20 teachings (including any policies or decisions con21 cerning housing, employment, curriculum, self-gov22 ernance, or student admission, continuing enroll23 ment, or graduation).’’. 


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1 PART C—COST OF HIGHER EDUCATION 

2 SEC. 121. COLLEGE DASHBOARD WEBSITE. 

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

4 1015a) is amended— 

5 (1) in subsection (a)— 

6 (A) by striking paragraph (1) and insert7 ing the following new paragraph: 

8 ‘‘(1) COLLEGE DASHBOARD WEBSITE.—The 

9 term ‘College Dashboard website’ means the College 

10 Dashboard website required under subsection (d).’’. 

11 (B) in paragraph (2), by striking ‘‘first12 time,’’; 

13 (C) in paragraph (3), in the matter pre14 ceding subparagraph (A), by striking ‘‘first15 time,’’; and 

16 (D) in paragraph (4), by striking ‘‘first17 time,’’; 

18 (2) in subsection (b)— 

19 (A) in paragraph (1), by striking ‘‘first20 time,’’; and 

21 (B) in paragraph (2), by striking ‘‘first22 time,’’; 

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

24 and (l); 

25 (4) by redesignating subsections (h), (i), and 

26 (k) as subsections (c), (d), and (e), respectively; and 


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1 (5) by striking subsection (d) (as so redesig2 nated) and inserting the following new subsection: 

3 ‘‘(d) CONSUMER INFORMATION.— 

4 ‘‘(1) AVAILABILITY OF TITLE IV INSTITUTION

5 INFORMATION.—The Secretary shall develop and 

6 make publicly available a website to be known as the 

7 ‘College Dashboard website’ in accordance with this 

8 section and prominently display on such website, in 

9 simple, understandable, and unbiased terms for the 

10 most recent academic year for which satisfactory 

11 data are available, the following information with re12 spect to each institution of higher education that 

13 participates in a program under title IV: 

14 ‘‘(A) A link to the website of the institu15 tion. 

16 ‘‘(B) An identification of the type of insti17 tution as one of the following: 

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

19 higher education. 

20 ‘‘(ii) A four-year private, nonprofit in21 stitution of higher education. 

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

23 institution of higher education. 

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

25 higher education. 


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1 ‘‘(v) A two-year private, nonprofit in2 stitution of higher education. 

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

4 institution of higher education. 

5 ‘‘(vii) A less than two-year public in6 stitution of higher education. 

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

8 nonprofit institution of higher education. 

9 ‘‘(ix) A less than two-year private, 

10 proprietary institution of higher education. 

11 ‘‘(C) The number of students enrolled at 

12 the institution— 

13 ‘‘(i) as undergraduate students, if ap14 plicable; and 

15 ‘‘(ii) as graduate students, if applica16 ble. 

17 ‘‘(D) The student-faculty ratio. 

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

19 certificate-seeking undergraduate students en20 rolled at the institution who obtain a degree or 

21 certificate within— 

22 ‘‘(i) 100 percent of the normal time 

23 for completion of, or graduation from, the 

24 program in which the student is enrolled; 


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

2 for completion of, or graduation from, the 

3 program in which the student is enrolled; 

4 and 

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

6 for completion of, or graduation from, the 

7 program in which the student is enrolled. 

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

9 undergraduate students enrolled at the institu10 tion who received Federal student financial aid 

11 under title IV based on dependency status and 

12 an income category selected by the user of the 

13 College Dashboard website from a list con14 taining the following income categories: 

15 ‘‘(I) $0 to $30,000. 

16 ‘‘(II) $30,001 to $48,000. 

17 ‘‘(III) $48,001 to $75,000. 

18 ‘‘(IV) $75,001 to $110,000. 

19 ‘‘(V) $110, 001 to $150,000. 

20 ‘‘(VI) Over $150,000. 

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

22 such institution. 

23 ‘‘(G) The percentage of undergraduate and 

24 graduate students who obtained a certificate or 


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1 degree from the institution who borrowed Fed2 eral student loans— 

3 ‘‘(i) set forth separately for each edu4 cational program offered by the institution; 

5 and 

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

7 allows a user of the College Dashboard 

8 website to view such percentage by select9 ing from a list of such educational pro10 grams. 

11 ‘‘(H) The average Federal student loan 

12 debt incurred by a student who obtained a cer13 tificate or degree in an educational program 

14 from the institution and who borrowed Federal 

15 student loans in the course of obtaining such 

16 certificate or degree— 

17 ‘‘(i) set forth separately for each edu18 cational program offered by the institution; 

19 and 

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

21 allows a user of the College Dashboard 

22 website to view such student loan debt in23 formation by selecting from a list of such 

24 educational programs. 


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

2 obtained a certificate or degree in an edu3 cational program from the institution and who 

4 received Federal student financial aid under 

5 title IV in the course of obtaining such certifi6 cate or degree— 

7 ‘‘(i) in the fifth and tenth years fol8 lowing the year in which the students ob9 tained such certificate or degree; 

10 ‘‘(ii) set forth separately by edu11 cational program; and 

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

13 allows a user of the College Dashboard 

14 website to view such median earnings in15 formation by selecting from a list of such 

16 educational programs. 

17 ‘‘(J) A link to the webpage of the institu18 tion containing campus safety data with respect 

19 to such institution. 

20 ‘‘(2) ADDITIONAL INFORMATION.—The Sec21 retary shall publish on websites that are linked to 

22 through the College Dashboard website, for the most 

23 recent academic year for which satisfactory data is 

24 available, the following information with respect to 


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1 each institution of higher education that participates 

2 in a program under title IV: 

3 ‘‘(A) ENROLLMENT.—The following enroll4 ment information: 

5 ‘‘(i) The percentages of male and fe6 male undergraduate students enrolled at 

7 the institution. 

8 ‘‘(ii) The percentages of under9 graduate students enrolled at the institu10 tion— 

11 ‘‘(I) full-time; and 

12 ‘‘(II) less than full-time. 

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

14 other than an institution that provides all 

15 courses and programs through online edu16 cation, of the undergraduate students en17 rolled at the institution— 

18 ‘‘(I) the percentage of such stu19 dents who are residents of the State 

20 in which the institution is located; 

21 ‘‘(II) the percentage of such stu22 dents who are not residents of such 

23 State; and 

24 ‘‘(III) the percentage of such stu25 dents who are international students. 


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1 ‘‘(iv) The percentages of under2 graduate students enrolled at the institu3 tion, disaggregated by— 

4 ‘‘(I) race and ethnic background; 

5 ‘‘(II) classification as a student 

6 with a disability; 

7 ‘‘(III) recipients of a Federal Pell 

8 Grant; 

9 ‘‘(IV) recipients of assistance 

10 under a tuition assistance program 

11 conducted by the Department of De12 fense under section 1784a or 2007 of 

13 title 10, United States Code, or other 

14 authorities available to the Depart15 ment of Defense or veterans’ edu16 cation benefits (as defined in section 

17 480); and 

18 ‘‘(V) recipients of a Federal stu19 dent loan. 

20 ‘‘(B) COMPLETION.—The information re21 quired under paragraph (1)(E), disaggregated 

22 by— 

23 ‘‘(i) recipients of a Federal Pell 

24 Grant; 

25 ‘‘(ii) race and ethnic background; 


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

2 disability; 

3 ‘‘(iv) recipients of assistance under a 

4 tuition assistance program conducted by 

5 the Department of Defense under section 

6 1784a or 2007 of title 10, United States 

7 Code, or other authorities available to the 

8 Department of Defense or veterans’ edu9 cation benefits (as defined in section 480); 

10 and 

11 ‘‘(v) recipients of a Federal student 

12 loan. 

13 ‘‘(C) COSTS.—The following cost informa14 tion: 

15 ‘‘(i) The cost of attendance for full16 time undergraduate students enrolled in 

17 the institution who live on campus. 

18 ‘‘(ii) The cost of attendance for full19 time undergraduate students enrolled in 

20 the institution who live off campus. 

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

22 full-time undergraduate students enrolled 

23 in the institution. 

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

25 credit hour or credit hour equivalency for 


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1 undergraduate students enrolled in the in2 stitution less than full time. 

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

4 of higher education (other than an institu5 tion described in clause (vi)) and notwith6 standing subsection (b)(1), the costs de7 scribed in clauses (i) and (ii) for— 

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

9 the institution who are residents of 

10 the State in which the institution is 

11 located; and 

12 ‘‘(II) full-time students enrolled 

13 in the institution who are not resi14 dents of such State. 

15 ‘‘(vi) In the case of a public institu16 tion of higher education that offers dif17 ferent tuition rates for students who are 

18 residents of a geographic subdivision small19 er than a State and students not located in 

20 such geographic subdivision and notwith21 standing subsection (b)(1), the costs de22 scribed in clauses (i) and (ii) for— 

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

24 the institution who are residents of 

25 such geographic subdivision; 


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1 ‘‘(II) full-time students enrolled 

2 at the institution who are residents of 

3 the State in which the institution is 

4 located but not residents of such geo5 graphic subdivision; and 

6 ‘‘(III) full-time students enrolled 

7 at the institution who are not resi8 dents of such State. 

9 ‘‘(D) FINANCIAL AID.—The following in10 formation with respect to financial aid: 

11 ‘‘(i) The average annual grant amount 

12 (including Federal, State, and institutional 

13 aid) awarded to an undergraduate student 

14 enrolled at the institution who receives 

15 grant aid, and the percentage of under16 graduate students receiving such aid. 

17 ‘‘(ii) The percentage of undergraduate 

18 students enrolled at the institution receiv19 ing Federal, State, and institutional 

20 grants, student loans, and any other type 

21 of student financial assistance known by 

22 the institution, provided publicly or 

23 through the institution, such as Federal 

24 work-study funds. 


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1 ‘‘(iii) The loan repayment rate (as de2 fined in section 481B) for each educational 

3 program at such institution. 

4 ‘‘(3) OTHER DATA MATTERS.— 

5 ‘‘(A) COMPLETION DATA.—The Commis6 sioner of Education Statistics shall ensure that 

7 the information required under paragraph 

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

9 students at an institution, including students 

10 other than first-time, full-time students and 

11 students who transfer to another institution, in 

12 a manner that the Commissioner considers ap13 propriate. 

14 ‘‘(B) ADJUSTMENT OF INCOME CAT15 EGORIES.—The Secretary may annually adjust 

16 the range of each of the income categories de17 scribed in paragraph (1)(F) to account for a 

18 change in the Consumer Price Index for All 

19 Urban Consumers as determined by the Bureau 

20 of Labor Statistics if the Secretary determines 

21 an adjustment is necessary. 

22 ‘‘(4) INSTITUTIONAL COMPARISON.—The Sec23 retary shall include on the College Dashboard 

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1 formation required under paragraphs (1) and (2) be2 tween institutions. 

3 ‘‘(5) UPDATES.— 

4 ‘‘(A) DATA.—The Secretary shall update 

5 the College Dashboard website not less than an6 nually. 

7 ‘‘(B) TECHNOLOGY AND FORMAT.—The 

8 Secretary shall regularly assess the format and 

9 technology of the College Dashboard website 

10 and make any changes or updates that the Sec11 retary considers appropriate. 

12 ‘‘(6) CONSUMER TESTING.— 

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

14 maintaining the College Dashboard website, the 

15 Secretary, in consultation with appropriate de16 partments and agencies of the Federal Govern17 ment, shall conduct consumer testing with ap18 propriate persons, including current and pro19 spective college students, family members of 

20 such students, institutions of higher education, 

21 and experts, to ensure that the College Dash22 board website is usable and easily understand23 able and provides useful and relevant informa24 tion to students and families. 


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1 ‘‘(B) RECOMMENDATIONS FOR

2 CHANGES.—The Secretary shall submit to the 

3 authorizing committees any recommendations 

4 that the Secretary considers appropriate for 

5 changing the information required to be pro6 vided on the College Dashboard website under 

7 paragraphs (1) and (2) based on the results of 

8 the consumer testing conducted under subpara9 graph (A). 

10 ‘‘(7) PROVISION OF APPROPRIATE LINKS TO

11 PROSPECTIVE STUDENTS AFTER SUBMISSION OF

12 FAFSA.—The Secretary shall provide to each stu13 dent who submits a Free Application for Federal 

14 Student Aid described in section 483 a link to the 

15 webpage of the College Dashboard website that con16 tains the information required under paragraph (1) 

17 for each institution of higher education such student 

18 includes on such Application. 

19 ‘‘(8) INTERAGENCY COORDINATION.—The Sec20 retary, in consultation with each appropriate head of 

21 a department or agency of the Federal Government, 

22 shall ensure to the greatest extent practicable that 

23 any information related to higher education that is 

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1 sistent with the information published on the College 

2 Dashboard website. 

3 ‘‘(9) DATA COLLECTION.—The Commissioner 

4 for Education Statistics shall continue to update and 

5 improve the Integrated Postsecondary Education 

6 Data System, including by reducing institutional re7 porting burden and improving the timeliness of the 

8 data collected. 

9 ‘‘(10) DATA PRIVACY.—The Secretary shall en10 sure any information made available under this sec11 tion is made available in accordance with section 

12 444 of the General Education Provisions Act (com13 monly known as the ‘Family Educational Rights and 

14 Privacy Act of 1974’).’’. 

15 (b) CONFORMING AMENDMENTS.—The Higher Edu16 cation Act of 1965 (20 U.S.C. 1001 et seq.), as amended 

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

18 striking ‘‘College Navigator’’ each place it appears and in19 serting ‘‘College Dashboard’’. 

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

21 than this Act), regulation, document, record, or other 

22 paper of the United States to the College Navigator 

23 website shall be considered to be a reference to the College 

24 Dashboard website. 


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1 (d) DEVELOPMENT.—The Secretary of Education 

2 shall develop and publish the College Dashboard website 

3 required under section 132 (20 U.S.C. 1015a), as amend4 ed by this section, not later than one year after the date 

5 of the enactment of this Act. 

6 (e) COLLEGE NAVIGATOR WEBSITE MAINTE7 NANCE.—The Secretary shall maintain the College Navi8 gator website required under section 132 (20 U.S.C. 

9 1015a), as in effect the day before the date of the enact10 ment of this Act, in the manner required under the Higher 

11 Education Act of 1965, as in effect on such day, until 

12 the College Dashboard website referred to in subsection 

13 (d) is complete and publicly available on the Internet. 

14 SEC. 122. NET PRICE CALCULATORS. 

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

16 so redesignated by section 121(a)(4) of this Act, is amend17 ed— 

18 (1) by redesignating paragraph (4) as para19 graph (6); and 

20 (2) by inserting after paragraph (3) the fol21 lowing new paragraphs: 

22 ‘‘(4) MINIMUM REQUIREMENTS FOR NET PRICE

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

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


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1 calculator for an institution of higher education shall 

2 meet the following requirements: 

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

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

5 calculator and prominently, clearly, and 

6 conspicuously posted in locations on the 

7 website of such institution where informa8 tion on costs and aid is provided and any 

9 other location that the institution considers 

10 appropriate; and 

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

12 other prominent links on the webpage 

13 where the link for the calculator is dis14 played. 

15 ‘‘(B) The webpage displaying the results 

16 for the calculator shall specify at least the fol17 lowing information: 

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

19 under subsection (a)(3)) for such institu20 tion, which shall be the most visually 

21 prominent figure on the results screen. 

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

23 ‘‘(I) tuition and fees; 

24 ‘‘(II) average annual cost of 

25 room and board for the institution for 


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1 a full-time undergraduate student en2 rolled in the institution; 

3 ‘‘(III) average annual cost of 

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

6 institution; 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 

11 institution. 

12 ‘‘(iii) Estimated total need-based 

13 grant aid and merit-based grant aid from 

14 Federal, State, and institutional sources 

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

17 ‘‘(iv) Percentage of the full-time un18 dergraduate students enrolled in the insti19 tution that received any type of grant aid 

20 described in clause (iii). 

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

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

24 that— 


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1 ‘‘(I) includes questions to esti2 mate the eligibility of a student or 

3 prospective student for veterans’ edu4 cation benefits (as defined in section 

5 480) or educational benefits for active 

6 duty service members, such benefits 

7 are displayed on the results screen in 

8 a manner that clearly distinguishes 

9 such benefits from the grant aid de10 scribed in clause (iii); or 

11 ‘‘(II) does not include questions 

12 to estimate eligibility for the benefits 

13 described in subclause (I), the results 

14 screen indicates that certain students 

15 (or prospective students) may qualify 

16 for such benefits and includes a link 

17 to information about such benefits. 

18 ‘‘(C) The institution shall populate the cal19 culator with data from an academic year that 

20 is not more than 2 academic years prior to the 

21 most recent academic year. 

22 ‘‘(5) PROHIBITION ON USE OF DATA COL23 LECTED BY THE NET PRICE CALCULATOR.—A net 

24 price calculator for an institution of higher edu25 cation shall— 


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1 ‘‘(A) clearly indicate which questions are 

2 required to be completed for an estimate of the 

3 net price from the calculator; 

4 ‘‘(B) in the case of a calculator that re5 quests contact information from users, clearly 

6 mark such requests as optional and provide for 

7 an estimate of the net price from the calculator 

8 without requiring users to enter such informa9 tion; and 

10 ‘‘(C) prohibit any personally identifiable in11 formation provided by users from being sold or 

12 made available to third parties.’’. 

13 SEC. 123. TEXT BOOK INFORMATION. 

14 Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amend15 ed by striking ‘‘section 102’’ and inserting ‘‘section 101 

16 or 102’’. 

17 PART D—ADMINISTRATIVE PROVISIONS FOR 

18 DELIVERY OF STUDENT FINANCIAL ASSISTANCE 

19 SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE 

20 DELIVERY OF FEDERAL STUDENT FINANCIAL 

21 ASSISTANCE. 

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

23 (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) 

5 the following: 

6 ‘‘(F) to maximize transparency in the op7 eration of Federal student financial assistance 

8 programs; 

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 man22 agement 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 

6 to the Secretary to inform policy creation re7 lated to Federal student financial assistance 

8 programs.’’; and 

9 (C) in paragraph (6)— 

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

11 ‘‘The Secretary’’ and inserting ‘‘Not less 

12 frequently than once annually, the Sec13 retary’’; 

14 (ii) by redesignating subparagraph 

15 (B) as subparagraph (C); and 

16 (iii) by inserting after subparagraph 

17 (A) the following: : 

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

19 carrying out the consultation required under 

20 subparagraph (A), the Secretary and the Chief 

21 Operating Officer shall jointly submit to the au22 thorizing committees a report that includes— 

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

24 and 


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1 ‘‘(ii) a description of any actions 

2 taken as a result of the consultation..’’. 

3 (3) in subsection (c)— 

4 (A) in paragraph (1)— 

5 (i) in subparagraph (A)— 

6 (I) by striking ‘‘Each year,’’ and 

7 inserting ‘‘Not less frequently than 

8 once every three years’’; and 

9 (II) by striking ‘‘succeeding 5’’ 

10 and inserting ‘‘succeeding 3’’; 

11 (ii) by amending subparagraph (B) to 

12 read as follows: 

13 ‘‘(B) CONSULTATION.— 

14 ‘‘(i) PLAN DEVELOPMENT.—Begin15 ning not later than 12 months before 

16 issuing each 3-year performance plan 

17 under subparagraph (A), the Secretary and 

18 the Chief Operating Officer shall consult 

19 with students, institutions of higher edu20 cation, Congress, lenders, and other inter21 ested parties regarding the development of 

22 the plan. In carrying out such consulta23 tion, the Secretary shall seek public com24 ment consistent with the requirements of 

25 subchapter II of chapter 5 of title 5, 


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1 United States Code (commonly known as 

2 the ‘Administrative Procedure Act’). 

3 ‘‘(ii) REVISION.—Not later than 90 

4 days before implementing any revision to 

5 the performance plan described in subpara6 graph (A), the Secretary shall consult with 

7 students, institutions of higher education, 

8 Congress, lenders, and other interested 

9 parties regarding such revision.’’; 

10 (iii) in subparagraph (C)— 

11 (I) in the matter preceding clause 

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

13 upon which such action steps will be 

14 taken and such goals will be achieved’’ 

15 after ‘‘achieve such goals’’; 

16 (II) by redesignating clause (v) 

17 as clause (vi); 

18 (III) by inserting after clause (iv) 

19 the following: 

20 ‘‘(v) ENSURING TRANSPARENCY.— 

21 Maximizing the transparency in the oper22 ations of the PBO, including complying 

23 with the data reporting requirements 

24 under section 144.’’; 

25 (B) in paragraph (2)— 


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

2 ‘‘3-year’’; 

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

4 ‘‘, including an explanation of the specific 

5 steps the Secretary and the Chief Oper6 ating Officer will take to address any such 

7 goals that were not achieved’’ before the 

8 period; 

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

10 ‘‘, in the aggregate and per individual’’ be11 fore the period; 

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

13 ‘‘Recommendations’’ and inserting ‘‘Spe14 cific recommendations’’; 

15 (v) by redesignating subparagraph (F) 

16 as subparagraph (G); and 

17 (vi) by inserting after subparagraph 

18 (E), the following: 

19 ‘‘(F) A description of the performance 

20 evaluation system developed under subsection 

21 (d)(6).’’. 

22 (C) in paragraph (3)— 

23 (i) in the matter preceding subpara24 graph (A), by striking ‘‘establish appro25 priate means to’’; 


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

2 ‘‘; and’’ and inserting ‘‘and the PBO;’’; 

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

4 the period at the end and inserting ‘‘and 

5 the PBO; and’’; and 

6 (iv) by adding at the end the fol7 lowing: 

8 ‘‘(C) through a nationally-representative 

9 survey, that at a minimum shall evaluate the 

10 degree of satisfaction with the delivery system 

11 and the PBO.’’; 

12 (4) in subsection (d)— 

13 (A) in paragraph (2), by striking ‘‘The 

14 Secretary may reappoint’’ and inserting ‘‘Ex15 cept as provided in paragraph (4)(C),’’ 

16 (B) in paragraph (4)— 

17 (i) in subparagraph (A)— 

18 (I) by inserting ‘‘specific, meas19 urable’’ after ‘‘set forth’’; and 

20 (II) by inserting ‘‘and metrics 

21 used to measure progress toward such 

22 goals’’ before the period; 

23 (ii) by amending subparagraph (B) to 

24 read as follows: 


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1 ‘‘(B) TRANSMITTAL AND PUBLIC AVAIL2 ABILITY.—The Secretary shall— 

3 ‘‘(i) transmit to the authorizing com4 mittees the final version of, and any subse5 quent revisions to, the agreement entered 

6 into under subparagraph (A); and 

7 ‘‘(ii) before the expiration of the pe8 riod of 5 business days beginning after the 

9 date on which the agreement is trans10 mitted under clause (i), make such agree11 ment publicly available on a publicly acces12 sible website of the Department of Edu13 cation.’’. 

14 (iii) by adding at the end the fol15 lowing: 

16 ‘‘(C) LOSS OF ELIGIBILITY.—If the agree17 ment under subparagraph (A) is not made pub18 licly available before the expiration of the period 

19 described in subparagraph (B)(ii), the Chief 

20 Operating Officer shall not be eligible for re21 appointment under paragraph (2).’’; and 

22 (C) in paragraph (5), by amending sub23 paragraph (B) to read as follows: 


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1 ‘‘(B) BONUS.—In addition, the Chief Op2 erating Officer may receive a bonus in the fol3 lowing amounts: 

4 ‘‘(i) For a period covered by a per5 formance agreement entered into under 

6 paragraph (4) before the date of the enact7 ment of the PROSPER Act, an amount 

8 that does not exceed 50 percent of the an9 nual rate basic pay of the Chief Operating 

10 Officer, based upon the Secretary’s evalua11 tion of the Chief Operating Officer’s per12 formance in relation to the goals set forth 

13 in the performance agreement. 

14 ‘‘(ii) For a period covered by a per15 formance agreement entered into under 

16 paragraph (4) on or after the date of the 

17 enactment of the PROSPER Act, an 

18 amount that does not exceed 40 percent of 

19 the annual rate basic pay of the Chief Op20 erating Officer, based upon the Secretary’s 

21 evaluation of the Chief Operating Officer’s 

22 performance in relation to the goals set 

23 forth in the performance agreement.’’. 

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


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1 ‘‘(6) PERFORMANCE EVALUATION SYSTEM.— 

2 The Secretary shall develop a system to evaluate the 

3 performance of the Chief Operating Officer and any 

4 senior managers appointed by such Officer under 

5 subsection (e). Such system shall— 

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

7 each individual attains the specific, measurable 

8 organizational and individual goals set forth in 

9 the performance agreement described in para10 graph (4)(A) and subsection (e)(2) (as the case 

11 may be); and 

12 ‘‘(B) evaluate each individual using a rat13 ing system that accounts for the full spectrum 

14 of performance levels, from the failure of an in15 dividual to meet the goals described in clause 

16 (i) to an individual’s success in meeting or ex17 ceeding such goals.’’; 

18 (5) in subsection (e)— 

19 (A) in paragraph (2), by striking ‘‘organi20 zation and individual goals’’ and inserting ‘‘spe21 cific, measurable organization and individual 

22 goals and the metrics used to measure progress 

23 toward such goals’’; 

24 (B) in paragraph (3), by amending sub25 paragraph (B) to read as follows: 


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1 ‘‘(B) BONUS.—In addition, a senior man2 ager may receive a bonus in the following 

3 amounts: 

4 ‘‘(i) For a period covered by a per5 formance agreement entered into under 

6 paragraph (2) before the date of the enact7 ment of the PROSPER Act, an amount 

8 such that the manager’s total annual com9 pensation does not exceed 125 percent of 

10 the maximum rate of basic pay for the 

11 Senior Executive Service, including any ap12 plicable locality-based comparability pay13 ment, based upon the Chief Operating Of14 ficer’s evaluation of the manager’s per15 formance in relation to the goals set forth 

16 in the performance agreement. 

17 ‘‘(ii) For a period covered by a per18 formance agreement entered into under 

19 paragraph (2) on or after the date of the 

20 enactment of the PROSPER Act, an 

21 amount such that the manager’s total an22 nual compensation does not exceed 120 

23 percent of the maximum rate of basic pay 

24 for the Senior Executive Service, including 

25 any applicable locality-based comparability 


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1 payment, based upon the Chief Operating 

2 Officer’s evaluation of the manager’s per3 formance in relation to the goals set forth 

4 in the performance agreement.’’. 

5 (6) by redesignating subsections (f), (g), (h), 

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

7 (7) by inserting after subsection (e) the fol8 lowing: 

9 ‘‘(f) ADVISORY BOARD.— 

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

11 later than one year after the date of the enactment 

12 of the PROSPER Act, the Secretary shall establish 

13 an Advisory Board (referred to in this subsection as 

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

15 Board shall be to conduct oversight over the PBO 

16 and the Chief Operating Officer and senior man17 agers described under subsection (e) to ensure that 

18 the PBO is meeting the purposes described in this 

19 section and the goals in the performance plan de20 scribed under such section. 

21 ‘‘(2) MEMBERSHIP.— 

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

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

24 Secretary. 


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1 ‘‘(B) CHAIRMAN.—A Chairman of the 

2 Board shall be elected by the Board from 

3 among its members for a 2-year term. 

4 ‘‘(C) SECRETARY AS AN EX OFFICIO MEM5 BER.—The Secretary, ex officio— 

6 ‘‘(i) shall— 

7 ‘‘(I) serve as a member of the 

8 Board; 

9 ‘‘(II) be a voting member of the 

10 Board; and 

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

12 the Board to serve as chairman or 

13 vice chairman of the Board; and 

14 ‘‘(ii) shall not be subject to the terms 

15 or compensation requirements described in 

16 this paragraph that are applicable to the 

17 other members of the Board. 

18 ‘‘(D) ADDITIONAL BOARD MEMBERS.— 

19 Each member of the Board (excluding the Sec20 retary) shall be appointed by the Secretary. 

21 ‘‘(E) TERMS.— 

22 ‘‘(i) IN GENERAL.—Each Board mem23 ber, except for the Secretary and the 

24 Board members described in clause (ii)(II), 

25 shall serve 5-year terms. 


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1 ‘‘(ii) INITIAL MEMBERS.— 

2 ‘‘(I) FIRST 3 MEMBERS.—The 

3 first 3 members confirmed to serve on 

4 the Board after the date of enactment 

5 of the PROSPER Act shall serve for 

6 5-year terms. 

7 ‘‘(II) OTHER MEMBERS.—The 

8 fourth, fifth, and sixth members con9 firmed to serve on the Board after 

10 such date of enactment shall serve for 

11 3-year terms. 

12 ‘‘(iii) REAPPOINTMENT.—The Sec13 retary may reappoint a Board member for 

14 one additional 5-year term. 

15 ‘‘(iv) VACANCIES.— 

16 ‘‘(I) IN GENERAL.—Not later 

17 than 30 days after a vacancy of the 

18 Board occurs, the Secretary shall pub19 lish a Federal Register notice solic20 iting nominations for the position. 

21 ‘‘(II) FILLING VACANCY.—Not 

22 later than 90 days after such vacancy 

23 occurs, such vacancy shall be filled in 

24 the same manner as the original ap25 pointment was made, except that— 


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1 ‘‘(aa) the appointment shall 

2 be for the remainder of the 

3 uncompleted term; and 

4 ‘‘(bb) such member may be 

5 reappointed under clause (iii). 

6 ‘‘(F) MEMBERSHIP QUALIFICATIONS AND

7 PROHIBITIONS.— 

8 ‘‘(i) QUALIFICATIONS.—The members 

9 of the board, other than the Secretary, 

10 shall be appointed without regard to polit11 ical affiliation and solely on the basis of 

12 their professional experience and expertise 

13 in— 

14 ‘‘(I) the management of large 

15 and financially significant organiza16 tions, including banks and commercial 

17 lending companies; or 

18 ‘‘(II) Federal student financial 

19 assistance programs. 

20 ‘‘(ii) CONFLICTS OF INTEREST AMONG

21 BOARD MEMBERS.—Before appointing 

22 members of the Board, the Secretary shall 

23 establish rules and procedures to address 

24 any potential conflict of interest between a 

25 member of the Board and responsibilities 


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1 of the Board, including prohibiting mem2 bership for individuals with a pecuniary in3 terest in the activities of the PBO. 

4 ‘‘(G) NO COMPENSATION.—Board mem5 bers shall serve without pay. 

6 ‘‘(H) EXPENSES OF BOARD MEMBERS.— 

7 Each member of the Board shall receive travel 

8 expenses and other permissible expenses, in9 cluding per diem in lieu of subsistence, in ac10 cordance with applicable provisions under title 

11 5, United States Code. 

12 ‘‘(3) BOARD RESPONSIBILITIES.—The Board 

13 shall have the following responsibilities: 

14 ‘‘(A) Conducting general oversight over the 

15 functioning and operation of the PBO, includ16 ing— 

17 ‘‘(i) ensuring that the reporting and 

18 planning requirements of this section are 

19 fulfilled by the PBO; and 

20 ‘‘(ii) ensuring that the Chief Oper21 ating Officer acquires senior managers 

22 with demonstrated management ability and 

23 expertise in consumer lending (as described 

24 in subsection (b)(1)(C)(iii)). 


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1 ‘‘(B) Approving the appointment or re2 appointment of a Chief Operating Officer, ex3 cept that the board shall have no authority to 

4 approve or disapprove the reappointment of the 

5 Chief Operating Officer who holds such position 

6 on the date of enactment of the PROSPER 

7 Act. 

8 ‘‘(C) Making recommendations with re9 spect to the suitability of any bonuses proposed 

10 to be provided to the Chief Operating Officer or 

11 senior managers described under subsections 

12 (d) and (e), to ensure that a bonus is not 

13 awarded to the Officer or a senior manager in 

14 a case in which such Officer or manager has 

15 failed to meet goals set for them under the rel16 evant performance plan under subsections 

17 (d)(4) and (e)(2), respectively. 

18 ‘‘(D) Approving any performance plan es19 tablished for the PBO. 

20 ‘‘(4) BOARD OPERATIONS.— 

21 ‘‘(A) MEETINGS.—The Board shall meet 

22 at least twice per year and at such other times 

23 as the chairperson determines appropriate. 

24 ‘‘(B) POWERS OF CHAIRPERSON.—Except 

25 as otherwise provided by a majority vote of the 


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1 Board, the powers of the chairperson shall in2 clude— 

3 ‘‘(i) establishing committees; 

4 ‘‘(ii) setting meeting places and times; 

5 ‘‘(iii) establishing meeting agendas; 

6 and 

7 ‘‘(iv) developing rules for the conduct 

8 of business. 

9 ‘‘(C) QUORUM.—Four members of the 

10 Board shall constitute a quorum. A majority of 

11 members present and voting shall be required 

12 for the Board to take action. 

13 ‘‘(D) ADMINISTRATION.—The Federal Ad14 visory Committee Act shall not apply with re15 spect to the Board, other than sections 10, 11 

16 and 12 of such Act. 

17 ‘‘(5) ANNUAL REPORT.— 

18 ‘‘(A) IN GENERAL.—Not less frequently 

19 than once annually, the Board shall submit to 

20 the authorizing committees a report on the re21 sults of the work conducted by the PBO. 

22 ‘‘(B) CONTENTS.—Each report under 

23 clause (i) shall include— 


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1 ‘‘(i) a description of the oversight 

2 work of the Board and the results of such 

3 work; 

4 ‘‘(ii) a description of statutory re5 quirements of this section and section 144 

6 where the PBO is not in compliance; 

7 ‘‘(iii) recommendations on the ap8 pointment or reappointment of a Chief Op9 erating Officer; 

10 ‘‘(iv) recommendations regarding 

11 bonus payments for the Chief Operating 

12 Officer and senior managers; and 

13 ‘‘(v) recommendations for the author14 izing Committees and the Appropriations 

15 Committees on— 

16 ‘‘(I) any statutory changes need17 ed that would enhance the ability of 

18 the PBO to meet the purposes of this 

19 section; and 

20 ‘‘(II) any recommendations for 

21 the Secretary or the Chief Operating 

22 Officer that will improve the oper23 ations of the PBO. 

24 ‘‘(vi) ISSUANCE AND PUBLIC RE25 LEASE.—Each report under clause (i) shall 


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1 be posted on the publicly accessible website 

2 of the Department of Education. 

3 ‘‘(vii) PBO RECOMMENDATIONS.—Not 

4 later than 180 days after the submission of 

5 each report under clause (i), the Chief Op6 erating Officer shall respond to each rec7 ommendation individually, which shall in8 clude a description of such actions that the 

9 Officer is undertaking to address such rec10 ommendation. 

11 ‘‘(C) STAFF.— 

12 ‘‘(i) IN GENERAL.—The Secretary 

13 may appoint to the Board not more than 

14 7 employees to assist in carrying out the 

15 duties of the Board under this section. 

16 ‘‘(ii) TECHNICAL EMPLOYEES.—Such 

17 appointments may include, for terms not 

18 to exceed 3 years and without regard to 

19 the provisions of title 5, United States 

20 Code, governing appointments in the com21 petitive service, not more than 3 technical 

22 employees who may be paid without regard 

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1 ule pay rates, but no individual so ap2 pointed shall be paid in excess of the rate 

3 authorized for GS–18 of the General 

4 Schedule. 

5 ‘‘(iii) DETAILEES.—The Secretary 

6 may detail, on a reimbursable basis, any of 

7 the personnel of the Department for the 

8 purposes described in clause (i). Such em9 ployees shall serve without additional pay, 

10 allowances, or benefits. 

11 ‘‘(iv) STATUTORY CONSTRUCTION.— 

12 Nothing in this subparagraph shall be con13 strued to provide for an increase in the 

14 total number of permanent full-time equiv15 alent positions in the Department or any 

16 other department or agency of the Federal 

17 Government. 

18 ‘‘(6) BRIEFING ON ACTIVITIES OF THE OVER19 SIGHT BOARD.—The Secretary shall, upon request, 

20 provide a briefing to the authorizing committees on 

21 the steps the Board has taken to carry out its re22 sponsibilities under this subsection.’’. 

23 SEC. 132. ADMINISTRATIVE DATA TRANSPARENCY. 

24 Part D of title I (20 U.S.C. 1018 et seq.) is amended 

25 by adding at the end the following: 


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1 ‘‘SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY. 

2 ‘‘(a) IN GENERAL.—To improve the transparency of 

3 the student aid delivery system, the Secretary and the 

4 Chief Operating Officer shall collect and publish informa5 tion on the performance of student loan programs under 

6 title IV in accordance with this section. 

7 ‘‘(b) DISCLOSURES.— 

8 ‘‘(1) IN GENERAL.—The Secretary and the 

9 Chief Operating Officer shall publish on a publicly 

10 accessible website of the Department of Education 

11 the following aggregate statistics with respect to the 

12 performance of student loans under title IV: 

13 ‘‘(A) The number of borrowers who paid 

14 off the total outstanding balance of principal 

15 and interest on their loans before the end of the 

16 10-year or consolidated loan repayment sched17 ule. 

18 ‘‘(B) The number of loans under each type 

19 of deferment and forbearance. 

20 ‘‘(C) The average length of time a loan 

21 stays in default. 

22 ‘‘(D) The percentage of loans in default 

23 among borrowers who completed the program of 

24 study for which the loans were made. 

25 ‘‘(E) The number of borrowers enrolled in 

26 an income-based repayment plan who make 


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1 monthly payments of $0 and the average stu2 dent loan debt of such borrowers. 

3 ‘‘(F) The number of students whose loan 

4 balances are growing because such students are 

5 not paying the full amount of interest accruing 

6 on the loans. 

7 ‘‘(G) The number of borrowers entering in8 come-based repayment plans to get out of de9 fault. 

10 ‘‘(H) The number of borrowers in income11 based repayment plans who have outstanding 

12 student loans from graduate school, and the av13 erage balance of such loans. 

14 ‘‘(I) With respect to the public service loan 

15 forgiveness program under section 455(m)— 

16 ‘‘(i) the number of applications sub17 mitted and processed; 

18 ‘‘(ii) the number of borrowers granted 

19 loan forgiveness; 

20 ‘‘(iii) the amount of loan debt for21 given; and 

22 ‘‘(iv) the number of borrowers granted 

23 loan forgiveness, and the amount of the 

24 loan debt forgiven, disaggregated by each 

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1 uals in public service jobs (as defined in 

2 section 455(m)(3)(B), including— 

3 ‘‘(I) the Federal Government, or 

4 a State or local government; 

5 ‘‘(II) an organization that is de6 scribed in section 501(c)(3) of the In7 ternal Revenue Code of 1986 and ex8 empt from taxation under section 

9 501(a) of such Code; and 

10 ‘‘(III) a non-profit organization 

11 not described in subclause (II). 

12 ‘‘(J) Any other aggregate statistics the 

13 Secretary and the Chief Operating Officer de14 termine to be necessary to adequately inform 

15 the public of the performance of the student 

16 loan programs under title IV. 

17 ‘‘(2) DISAGGREGATION.—The statistics de18 scribed in clauses (i) through (iii) of paragraph 

19 (1)(I) shall be disaggregated— 

20 ‘‘(A) by the number or amount for most 

21 recent quarter; 

22 ‘‘(B) by the total number or amount as of 

23 the date of publication; 

24 ‘‘(C) by repayment plan; 


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1 ‘‘(D) by borrowers seeking loan forgiveness 

2 for loans made for an undergraduate course of 

3 study; and 

4 ‘‘(E) by borrowers seeking loan forgiveness 

5 for loans made for a graduate course of study. 

6 ‘‘(3) QUARTERLY UPDATES.—The statistics 

7 published under paragraph (1) shall be updated not 

8 less frequently than once each fiscal quarter. 

9 ‘‘(c) INFORMATION COLLECTION.— 

10 ‘‘(1) IN GENERAL.—The Secretary and the 

11 Chief Operating Officer shall collect information on 

12 the performance of student loans under title IV over 

13 time, including— 

14 ‘‘(A) measurement of the cash flow gen15 erated by such loans as determined by assessing 

16 monthly payments on the loans over time; 

17 ‘‘(B) the income level and employment sta18 tus of borrowers during repayment; 

19 ‘‘(C) the loan repayment history of bor20 rowers prior to default; 

21 ‘‘(D) the progress of borrowers in making 

22 monthly payments on loans after defaulting on 

23 the loans; and 


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1 ‘‘(E) such other information as the Sec2 retary and the Chief Operating Officer deter3 mine to be appropriate. 

4 ‘‘(2) AVAILABILITY.— 

5 ‘‘(A) IN GENERAL.—The information col6 lected under paragraph (1) shall be made avail7 able biannually to organizations and researchers 

8 that— 

9 ‘‘(i) submit to the Secretary and the 

10 Chief Operating officer a request for such 

11 information; and 

12 ‘‘(ii) enter into an agreement with the 

13 National Center for Education Statistics 

14 under which the organization or researcher 

15 (as the case may be) agrees to use the in16 formation in accordance with the privacy 

17 laws described in subparagraph (B). 

18 ‘‘(B) PRIVACY PROTECTIONS.—The privacy 

19 laws described in this subparagraph are the fol20 lowing: 

21 ‘‘(i) Section 183 of the Education 

22 Sciences Reform Act of 2002 (20 U.S.C. 

23 9573). 

24 ‘‘(ii) The Privacy Act of 1974 (5 

25 U.S.C. 552a). 


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1 ‘‘(iii) Section 444 of the General Edu2 cation Provisions Act (commonly known as 

3 the ‘Family Educational Rights and Pri4 vacy Act of 1974’) (20 U.S.C. 1232g). 

5 ‘‘(iv) Subtitle A of title V of the E– 

6 Government Act of 2002 (44 U.S.C. 3501 

7 note). 

8 ‘‘(C) FORMAT.—The information described 

9 in subparagraph (A) shall be made available in 

10 the format of a data file that contains an statis11 tically accurate, representative sample of all 

12 borrowers of loans under title IV. 

13 ‘‘(d) DATA SHARING.—The Secretary and the Chief 

14 Operating Officer may enter into cooperative data sharing 

15 agreements with other Federal or State agencies to ensure 

16 the accuracy of information collected and published under 

17 this section. 

18 ‘‘(e) PRIVACY.—The Secretary and the Chief Oper19 ating Officer shall ensure that any information collected, 

20 published, or otherwise made available under this section 

21 does not reveal personally identifiable information.’’. 


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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 

14 (C) 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 PROS19 PER 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)(ii)— 

6 (i) by striking ‘‘or’’ at the end of 

7 clause (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 informa21 tional material, the information the Board 

22 of Governors of the Federal Reserve Sys23 tem requires the lender to provide to the 

24 covered institution under section 

25 128(e)(11) of the Truth in Lending Act 


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1 (15 U.S.C. 1638(e)(11)) for such loan;’’; 

2 and 

3 (ii) by adding at the end the fol4 lowing: 

5 ‘‘(D) SPECIAL RULE.—Notwithstanding 

6 any other provision of law, a covered institu7 tion, or an institution-affiliated organization of 

8 such covered institution, shall not be required 

9 to provide any information regarding private 

10 education loans to prospective borrowers except 

11 for the information described in subparagraph 

12 (B).’’; and 

13 (B) in subsection (b)(1)(A)(i), by striking 

14 ‘‘part B or D’’ and inserting ‘‘part B, D, or 

15 E’’; 

16 (3) in section 153 (20 U.S.C. 1019b)— 

17 (A) in subsection (a)— 

18 (i) in paragraph (1)(B)— 

19 (I) in clause (i), by adding ‘‘and’’ 

20 at the end; 

21 (II) in clause (ii), by striking ‘‘; 

22 and’’ at the end and inserting a pe23 riod; and 

24 (III) by striking clause (iii); and 


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1 (ii) in paragraph (2), by amending 

2 subparagraph (C) to read as follows: 

3 ‘‘(C) update such model disclosure form 

4 not later than 180 after the date of enactment 

5 of the PROSPER Act, and periodically there6 after, as necessary.’’; and 

7 (B) by amending subsection (c) to read as 

8 follows: 

9 ‘‘(c) DUTIES OF COVERED INSTITUTIONS AND INSTI10 TUTION-AFFILIATED ORGANIZATIONS.— 

11 ‘‘(1) CODE OF CONDUCT.—Each covered insti12 tution, and each institution-affiliated organization of 

13 such covered institution, that has a preferred lender 

14 arrangement, shall comply with the code of conduct 

15 requirements of subparagraphs (A) through (C) of 

16 section 487(a)(22). 

17 ‘‘(2) APPLICABLE CODE OF CONDUCT.—For 

18 purposes of subparagraph (A), an institution-affili19 ated organization of a covered institution shall— 

20 ‘‘(A) comply with the code of conduct de21 veloped and published by such covered institu22 tion under subparagraphs (A) and (B) of sec23 tion 487(a)(22); 


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1 ‘‘(B) if such institution-affiliated organiza2 tion has a website, publish such code of conduct 

3 prominently on the website; and 

4 ‘‘(C) administer and enforce such code of 

5 conduct by, at a minimum, requiring that all of 

6 such organization’s agents with responsibilities 

7 with respect to education loans be annually in8 formed of the provisions of such code of con9 duct.’’; and 

10 (4) in section 154 (20 U.S.C. 1019c)— 

11 (A) in the subsection heading, by inserting 

12 before the period the following: ‘‘OR THE FED13 ERAL ONE LOAN PROGRAM’’; 

14 (B) by striking ‘‘William D. Ford Direct 

15 Loan Program’’ each place it appears and in16 serting ‘‘William D. Ford Direct Loan Program 

17 or the Federal ONE Loan Program’’ 

18 (C) by striking ‘‘part D’’ each place it ap19 pears and inserting ‘‘part D or E’’; and 

20 (D) in subsection (a)— 

21 (i) by striking ‘‘the development’’ and 

22 inserting ‘‘the first update’’; 

23 (ii) by striking ‘‘section 153(a)(2)(B)’’ 

24 and inserting ‘‘section 153(a)(2)(C)’’; and 


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1 (iii) by striking ‘‘Federal Direct Staf2 ford Loans, Federal Direct Unsubsidized 

3 Stafford Loans, and Federal Direct 

4 PLUS’’ and inserting ‘‘undergraduate, 

5 graduate, and parent’’. 

6 (b) LIMITATION.—The Secretary of Education shall 

7 not impose, administer, or enforce any requirements on 

8 a covered institution or an institution-affiliated organiza9 tion of a covered institution relating to preferred lender 

10 lists or arrangements unless explicitly authorized by sec11 tions 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher 

12 Education Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 

13 1019b(c), or 1094(h), respectively) as amended by this 

14 Act. 

15 PART F—ADDRESSING SEXUAL ASSAULT 

16 SEC. 151. ADDRESSING SEXUAL ASSAULT. 

17 Title I (20 U.S.C. 1001 et seq.) is amended by adding 

18 at the end the following new part: 

19 ‘‘PART F—ADDRESSING SEXUAL ASSAULT 

20 ‘‘SEC. 161. APPLICATION. 

21 ‘‘The requirements of this part shall apply to any in22 stitution of higher education receiving Federal financial 

23 assistance under this Act, including financial assistance 

24 provided to students under title IV, other than— 

25 ‘‘(1) an institution outside the United States; or 


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1 ‘‘(2) an institution that provides instruction pri2 marily through online courses. 

3 ‘‘SEC. 162. CAMPUS CLIMATE SURVEYS. 

4 ‘‘(a) SURVEYS TO MEASURE CAMPUS ATTITUDES

5 AND CLIMATE REGARDING SEXUAL ASSAULT AND MIS6 CONDUCT ON CAMPUS.—Each institution of higher edu7 cation that is subject to this part shall conduct surveys 

8 of its students to measure campus attitudes towards sex9 ual assault and the general climate of the campus regard10 ing the institution’s treatment of sexual assault on cam11 pus, and shall use the results of the survey to improve 

12 the institution’s ability to prevent and respond appro13 priately to incidents of sexual assault. 

14 ‘‘(b) CONTENTS.—The institution’s survey under this 

15 section shall consist of such questions as the institution 

16 considers appropriate, which may (at the option of the in17 stitution) include any of the following: 

18 ‘‘(1) Questions on the incidence and prevalence 

19 of sexual assault experienced by students. 

20 ‘‘(2) Questions on whether students who experi21 ence sexual assault report such incidents to campus 

22 officials or law enforcement agencies. 

23 ‘‘(3) Questions on whether the alleged perpetra24 tors are students of the institution. 


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1 ‘‘(4) Questions to test the students’ knowledge 

2 and understanding of institutional policies regarding 

3 sexual assault and available campus support services 

4 for victims of sexual assault. 

5 ‘‘(5) Questions to test the students’ knowledge, 

6 understanding, and retention of campus sexual as7 sault prevention and awareness programming. 

8 ‘‘(6) Questions related to dating violence, do9 mestic violence, and stalking. 

10 ‘‘(c) OTHER ISSUES RELATING TO THE ADMINISTRA11 TION OF SURVEYS.— 

12 ‘‘(1) MANDATORY CONFIDENTIALITY OF RE13 SPONSES.—The institution shall ensure that all re14 sponses to surveys under this section are kept con15 fidential and do not require the respondents to pro16 vide personally identifiable information. 

17 ‘‘(2) ENCOURAGING USE OF BEST PRACTICES

18 AND APPROPRIATE LANGUAGE.—The institution is 

19 encouraged to administer the surveys under this sec20 tion in accordance with best practices derived from 

21 peer-reviewed research, and to use language that is 

22 sensitive to potential respondents who may have 

23 been victims of sexual assault. 


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1 ‘‘(3) ENCOURAGING RESPONSES.—The institu2 tion shall make a good faith effort to encourage stu3 dents to respond to the surveys. 

4 ‘‘(d) ROLE OF SECRETARY.— 

5 ‘‘(1) DEVELOPMENT OF SAMPLE SURVEYS.— 

6 The Secretary, in consultation with relevant stake7 holders, shall develop sample surveys that an institu8 tion may elect to use under this section, and shall 

9 post such surveys on a publicly accessible website of 

10 the Department of Education. The Secretary shall 

11 develop sample surveys that are suitable for the var12 ious populations who will participate in the surveys. 

13 ‘‘(2) LIMIT ON OTHER ACTIVITIES.—In carrying 

14 out this section, the Secretary— 

15 ‘‘(A) may not regulate or otherwise impose 

16 conditions on the contents of an institution’s 

17 surveys under this section, except as may be 

18 necessary to ensure that the institution meets 

19 the confidentiality requirements of subsection 

20 (c)(1); and 

21 ‘‘(B) may not use the results of the sur22 veys to make comparisons between institutions 

23 of higher education. 

24 ‘‘(e) FREQUENCY.—An institution of higher edu25 cation that is subject to this part shall conduct a survey 


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1 under this section not less frequently than once every 3 

2 academic years. 

3 ‘‘SEC. 163. SURVIVORS’ COUNSELORS. 

4 ‘‘(a) REQUIRING INSTITUTIONS TO MAKE COUN5 SELOR AVAILABLE.— 

6 ‘‘(1) IN GENERAL.—Each institution of higher 

7 education that is subject to this part shall retain the 

8 services of qualified sexual assault survivors’ coun9 selors to counsel and support students who are vic10 tims of sexual assault. 

11 ‘‘(2) USE OF CONTRACTORS PERMITTED.—At 

12 the option of the institution, the institution may re13 tain the services of counselors who are employees of 

14 the institution or may enter into agreements with 

15 other institutions of higher education, victim advo16 cacy organizations, or other appropriate sources to 

17 provide counselors for purposes of this section. 

18 ‘‘(3) NUMBER.—The institution shall retain 

19 such number of counselors under this section as the 

20 institution considers appropriate based on a reason21 able determination of the anticipated demand for 

22 such counselors’ services, so long as the institution 

23 retains the services of at least one such counselor at 

24 all times. 


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1 ‘‘(b) QUALIFICATIONS.—A counselor is qualified for 

2 purposes of this section if the counselor has completed 

3 education specifically designed to enable the counselor to 

4 provide support to victims of sexual assault, and is famil5 iar with relevant laws on sexual assault as well as the in6 stitution’s own policies regarding sexual assault. 

7 ‘‘(c) INFORMING VICTIMS OF AVAILABLE OPTIONS

8 AND SERVICES.—In providing services pursuant to this 

9 section, a counselor shall— 

10 ‘‘(1) inform the victim of sexual assault of op11 tions available to victims, including the procedures 

12 the victim may follow to report the assault to the in13 stitution or to a law enforcement agency; and 

14 ‘‘(2) inform the victim of interim measures that 

15 may be taken pending the resolution of institutional 

16 disciplinary proceedings or the conclusion of criminal 

17 justice proceedings. 

18 ‘‘(d) CONFIDENTIALITY.— 

19 ‘‘(1) MAINTAINING CONFIDENTIALITY OF IN20 FORMATION.—In providing services pursuant to this 

21 section, a counselor shall— 

22 ‘‘(A) maintain confidentiality with respect 

23 to any information provided by a victim of sex24 ual assault to the greatest extent permitted 

25 under applicable law; and 


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1 ‘‘(B) notify the victim of any cir2 cumstances under which the counselor is re3 quired to report information to others (includ4 ing a law enforcement agency) notwithstanding 

5 the general requirement to maintain confiden6 tiality under subparagraph (A). 

7 ‘‘(2) MAINTAINING PRIVACY OF RECORDS.—A 

8 counselor providing services pursuant to this section 

9 shall be considered a recognized professional for pur10 poses of section 444(a)(4)(B)(iv) of the General 

11 Education Provisions Act (commonly known as the 

12 ‘Family Educational Rights and Privacy Act of 

13 1974’) (20 U.S.C. 1232g(a)(4)(B)(iv)). 

14 ‘‘(e) LIMITATIONS.— 

15 ‘‘(1) NO REPORTING OF INCIDENTS UNDER

16 CLERY ACT OR OTHER AUTHORITY.—A counselor 

17 providing services pursuant to this section is not re18 quired to report incidents of sexual assault that are 

19 reported to the counselor for inclusion in any report 

20 on campus crime statistics, and shall not be consid21 ered part of a campus police or security department 

22 for purposes of section 485(f). 

23 ‘‘(2) NO COVERAGE OF COUNSELORS AS RE24 SPONSIBLE EMPLOYEES UNDER TITLE IX.—A coun25 selor providing services pursuant to this section on 


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1 behalf of an institution of higher education shall not 

2 be considered a responsible employee of the institu3 tion for purposes of title IX of the Education 

4 Amendments of 1972 (20 U.S.C. 1681 et seq.) or 

5 the regulations promulgated pursuant to such title. 

6 ‘‘(f) NOTIFICATIONS TO STUDENTS.—Each institu7 tion of higher education that is subject to this part shall 

8 make a good faith effort to notify its students of the avail9 ability of the services of counselors pursuant to this sec10 tion through the statement of policy described in section 

11 485(f)(8)(B)(vi) and any other methods as the institution 

12 considers appropriate, including disseminating informa13 tion through the institution’s website, posting notices 

14 throughout the campus, and including information as part 

15 of programs to educate students on sexual assault preven16 tion and awareness. 

17 ‘‘SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL 

18 ASSAULT. 

19 ‘‘(a) REQUIREMENT TO DEVELOP AND DISTRIBUTE

20 FORM.—Each institution of higher education that is sub21 ject to this part shall develop a one-page form containing 

22 information to provide guidance and assistance to students 

23 who may be victims of sexual assault, and shall make the 

24 form widely available to students. 


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1 ‘‘(b) CONTENTS OF FORM.—The form developed 

2 under this section shall contain such information as the 

3 institution considers appropriate, and may include the fol4 lowing: 

5 ‘‘(1) Information about the services of coun6 selors which are available pursuant to section 163, 

7 including a statement that the counselor will provide 

8 the maximum degree of confidentiality permitted 

9 under law, and a brief description of the cir10 cumstances under which the counselor may be re11 quired to report information notwithstanding the vic12 tim’s desire to keep the information confidential. 

13 ‘‘(2) Information about other appropriate cam14 pus resources and resources in the local community, 

15 including contact information. 

16 ‘‘(3) Information about where to obtain medical 

17 treatment, and information about transportation 

18 services to such medical treatment facilities, if avail19 able. 

20 ‘‘(4) Information about the importance of pre21 serving evidence after a sexual assault. 

22 ‘‘(5) Information about how to file a report 

23 with local law enforcement agencies. 


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1 ‘‘(6) Information about the victim’s right to re2 quest accommodations, and examples of accommoda3 tions that may be provided. 

4 ‘‘(7) Information about the victim’s right to re5 quest that the institution begin an investigation of 

6 an allegation of sexual assault and initiate an insti7 tutional disciplinary proceeding if the alleged perpe8 trator of the assault is another student or a member 

9 of the faculty or staff of the institution. 

10 ‘‘(8) A statement that an institutional discipli11 nary proceeding is not a substitute for a criminal 

12 justice proceeding. 

13 ‘‘(9) Information about how to report a sexual 

14 assault to the institution, including the designated 

15 official or office responsible for receiving these re16 ports. 

17 ‘‘(c) DEVELOPMENT OF MODEL FORMS.—The Sec18 retary, in consultation with relevant stakeholders, shall de19 velop model forms that an institution may use to meet 

20 the requirements of this section, and shall include in such 

21 model forms language which may accommodate a variety 

22 of State and local laws and institutional policies. Nothing 

23 in this subsection may be construed to require an institu24 tion to use any of the model forms developed under this 

25 subsection. 


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1 ‘‘SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL 

2 LAW ENFORCEMENT AGENCIES. 

3 ‘‘(a) FINDINGS; PURPOSE.— 

4 ‘‘(1) FINDINGS.—Because sexual assault is a 

5 serious crime, coordination and cooperation between 

6 institutions of higher education and law enforcement 

7 agencies are critical in ensuring that reports of sex8 ual assaults on campus are handled in an appro9 priate and effective manner. A memorandum of un10 derstanding entered into between an institution and 

11 the law enforcement agency with primary jurisdic12 tion for responding to reports of sexual assault on 

13 the institution’s campus is a useful tool to promote 

14 this coordination and cooperation. 

15 ‘‘(2) PURPOSE.—It is the purpose of this sec16 tion to encourage each institution of higher edu17 cation that is subject to this part to enter into a 

18 memorandum of understanding with the law enforce19 ment agency with primary jurisdiction for respond20 ing to reports of sexual assault on the institution’s 

21 campus so that reports of sexual assault on the in22 stitution’s campus may be handled in an appropriate 

23 and effective manner. 

24 ‘‘(b) CONTENTS OF MEMORANDUM.—An institution 

25 of higher education and a law enforcement agency enter26 ing into a memorandum of understanding described in this 


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1 section are encouraged to include in the memorandum pro2 visions addressing the following: 

3 ‘‘(1) An outline of the protocols and a delinea4 tion of responsibilities for responding to a report of 

5 sexual assault occurring on campus. 

6 ‘‘(2) A clarification of each party’s responsibil7 ities under existing Federal, State, and local law or 

8 policies. 

9 ‘‘(3) The need for the law enforcement agency 

10 to know about institutional policies and resources so 

11 that the agency can direct student-victims of sexual 

12 assault to such resources. 

13 ‘‘(4) The need for the institution to know about 

14 resources available within the criminal justice system 

15 to assist survivors, including the presence of special 

16 prosecutor or police units specifically designated to 

17 handle sexual assault cases. 

18 ‘‘(5) If the institution has a campus police or 

19 security department with law enforcement authority, 

20 the need to clarify the relationship and delineate the 

21 responsibilities between such department and the 

22 law enforcement agency with respect to handling in23 cidents of sexual assaults occurring on campus. 

24 ‘‘(c) ROLE OF SECRETARY.—The Secretary, in con25 sultation with the Attorney General, shall develop best 


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1 practices for memoranda of understanding described in 

2 this section, and shall disseminate such best practices on 

3 a publicly accessible website of the Department of Edu4 cation. 

5 ‘‘SEC. 166. DEFINITIONS. 

6 ‘‘In this part: 

7 ‘‘(1) The term ‘sexual assault’ has the meaning 

8 given such term in section 485(f)(6)(A)(v). 

9 ‘‘(2) The terms ‘dating violence’, ‘domestic vio10 lence’, and ‘stalking’, have the meaning given such 

11 terms in section 485(f)(6)(A)(i).’’. 

12 TITLE II—EXPANDING ACCESS 

13 TO IN-DEMAND APPRENTICE14 SHIPS 

15 SEC. 201. REPEAL. 

16 (a) REPEAL.—Title II (20 U.S.C. 1021 et seq.) is 

17 repealed. 

18 (b) PART A TRANSITION.—Part A of title II (20 

19 U.S.C. 1022 et seq.), as in effect on the day before the 

20 date of the enactment of this Act, may be carried out 

21 using funds that have been appropriated for such part 

22 until June 30, 2018. 


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1 SEC. 202. GRANTS FOR ACCESS TO HIGH-DEMAND CA2 REERS. 

3 The Higher Education Act of 1965 (20 U.S.C. 1001 

4 et seq.) is amended by inserting after title I the following: 

5 ‘‘TITLE II—EXPANDING ACCESS 

6 TO IN-DEMAND APPRENTICE7 SHIPS 

8 ‘‘SEC. 201. APPRENTICESHIP GRANT PROGRAM. 

9 ‘‘(a) PURPOSE.—The purpose of this section is to ex10 pand student access to, and participation in, new industry11 led earn-and-learn programs leading to high-wage, high12 skill, and high-demand careers. 

13 ‘‘(b) AUTHORIZATION OF APPRENTICESHIP GRANT

14 PROGRAM.— 

15 ‘‘(1) IN GENERAL.—From the amounts author16 ized under subsection (j), the Secretary shall award 

17 grants, on a competitive basis, to eligible partner18 ships for the purpose described in subsection (a). 

19 ‘‘(2) DURATION.—The Secretary shall award 

20 grants under this section for a period of— 

21 ‘‘(A) not less than 1 year; and 

22 ‘‘(B) not more than 4 years. 

23 ‘‘(3) LIMITATIONS.— 

24 ‘‘(A) AMOUNT.—A grant awarded under 

25 this section may not be in an amount greater 

26 than $1,500,000. 


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1 ‘‘(B) NUMBER OF AWARDS.—An eligible 

2 partnership or member of such partnership may 

3 not be awarded more than one grant under this 

4 section. 

5 ‘‘(C) ADMINISTRATION COSTS.—An eligible 

6 partnership awarded a grant under this section 

7 may not use more than 5 percent of the grant 

8 funds to pay administrative costs associated 

9 with activities funded by the grant. 

10 ‘‘(c) MATCHING FUNDS.—To receive a grant under 

11 this section, an eligible partnership shall, through cash or 

12 in-kind contributions, provide matching funds from non13 Federal sources in an amount equal to or greater than 

14 50 percent of the amount of such grant. 

15 ‘‘(d) APPLICATIONS.— 

16 ‘‘(1) IN GENERAL.—To receive a grant under 

17 this section, an eligible partnership shall submit to 

18 the Secretary at such a time as the Secretary may 

19 require, an application that— 

20 ‘‘(A) identifies and designates the business 

21 or institution of higher education responsible 

22 for the administration and supervision of the 

23 earn-and-learn program for which such grant 

24 funds would be used; 


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1 ‘‘(B) identifies the businesses and institu2 tions of higher education that comprise the eli3 gible partnership; 

4 ‘‘(C) identifies the source and amount of 

5 the matching funds required under subsection 

6 (c); 

7 ‘‘(D) identifies the number of students who 

8 will participate and complete the relevant earn9 and-learn program within 1 year of the expira10 tion of the grant; 

11 ‘‘(E) identifies the amount of time, not to 

12 exceed 2 years, required for students to com13 plete the program; 

14 ‘‘(F) identifies the relevant recognized 

15 postsecondary credential to be awarded to stu16 dents who complete the program; 

17 ‘‘(G) identifies the anticipated earnings of 

18 students— 

19 ‘‘(i) 1 year after program completion; 

20 and 

21 ‘‘(ii) 3 years after program comple22 tion; 

23 ‘‘(H) describes the specific project for 

24 which the application is submitted, including a 

25 summary of the relevant classroom and paid 


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1 structured on-the-job training students will re2 ceive; 

3 ‘‘(I) describes how the eligible partnership 

4 will finance the program after the end of the 

5 grant period; 

6 ‘‘(J) describes how the eligible partnership 

7 will support the collection of information and 

8 data for purposes of the program evaluation re9 quired under subsection (h); and 

10 ‘‘(K) describes the alignment of the pro11 gram with State identified in-demand industry 

12 sectors. 

13 ‘‘(2) APPLICATION REVIEW PROCESS.— 

14 ‘‘(A) REVIEW PANEL.—Applications sub15 mitted under paragraph (1) shall be read by a 

16 panel of readers composed of individuals se17 lected by the Secretary. The Secretary shall as18 sure that an individual assigned under this 

19 paragraph does not have a conflict of interest 

20 with respect to the applications reviewed by 

21 such individual. 

22 ‘‘(B) COMPOSITION OF REVIEW PANEL.— 

23 The panel of reviewers selected by the Secretary 

24 under subparagraph (A) shall be comprised as 

25 follows: 


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1 ‘‘(i) A majority of the panel shall be 

2 individuals who are representative of busi3 nesses, which may include owners, execu4 tives with optimum hiring authority, or in5 dividuals representing business organiza6 tions or business trade associations. 

7 ‘‘(ii) The remainder of the panel shall 

8 be equally divided between individuals who 

9 are— 

10 ‘‘(I) representatives of institu11 tions of higher education that offer 

12 programs of two years or less; and 

13 ‘‘(II) representatives of State 

14 workforce development boards estab15 lished under section 101 of the Work16 force Innovation and Opportunity Act 

17 (29 U.S.C. 3111). 

18 ‘‘(C) REVIEW OF APPLICATIONS.—The 

19 Secretary shall instruct the review panel se20 lected by the Secretary under paragraph (2)(A) 

21 to evaluate applications using only the criteria 

22 specified in paragraph (1) and make rec23 ommendations with respect to— 

24 ‘‘(i) the quality of the applications; 


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1 ‘‘(ii) whether a grant should be 

2 awarded for a project under this title; and 

3 ‘‘(iii) the amount and duration of 

4 such grant. 

5 ‘‘(D) NOTIFICATION.—Not later than June 

6 30 of each year, the Secretary shall notify each 

7 eligible partnership submitting an application 

8 under this section of— 

9 ‘‘(i) the scores given the applicant by 

10 the panel pursuant to this section; 

11 ‘‘(ii) the recommendations of the 

12 panel with respect to such application; and 

13 ‘‘(iii) the reasons for the decision of 

14 the Secretary in awarding or refusing to 

15 award a grant under this section; and 

16 ‘‘(iv) modifications, if any, in the rec17 ommendations of the panel made to the 

18 Secretary. 

19 ‘‘(e) AWARD BASIS.—The Secretary shall award 

20 grants under this section on the following basis— 

21 ‘‘(1) the number of participants to be served by 

22 the grant; 

23 ‘‘(2) the anticipated income of program partici24 pants in relation to the regional median income; 


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1 ‘‘(3) the alignment of the program with State2 identified in-demand industry sectors; and 

3 ‘‘(4) the recommendations of the readers under 

4 subsection (d)(2)(C). 

5 ‘‘(f) USE OF FUNDS.—Grant funds provided under 

6 this section may be used for— 

7 ‘‘(1) the purchase of appropriate equipment, 

8 technology, or instructional material, aligned with 

9 business and industry needs, including machinery, 

10 testing equipment, hardware and software; 

11 ‘‘(2) student books, supplies, and equipment re12 quired for enrollment; 

13 ‘‘(3) the reimbursement of up to 50 percent of 

14 the wages of a student participating in an earn-and15 learn program receiving a grant under this section; 

16 ‘‘(4) the development of industry-specific pro17 graming; 

18 ‘‘(5) supporting the transition of industry-based 

19 professionals from an industry setting to an aca20 demic setting; 

21 ‘‘(6) industry-recognized certification exams or 

22 other assessments leading to a recognized postsec23 ondary credential associated with the earn-and-learn 

24 program; and 


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1 ‘‘(7) any fees associated with the certifications 

2 or assessments described in paragraph (6). 

3 ‘‘(g) TECHNICAL ASSISTANCE.—The Secretary may 

4 provide technical assistance to eligible partnerships award5 ed under this section throughout the grant period for pur6 poses of grant management. 

7 ‘‘(h) EVALUATION.— 

8 ‘‘(1) IN GENERAL.—From the amounts made 

9 available under subsection (j), the Secretary, acting 

10 through the Director of the Institute for Education 

11 Sciences, shall provide for the independent evalua12 tion of the grant program established under this sec13 tion that includes the following: 

14 ‘‘(A) An assessment of the effectiveness of 

15 the grant program in expanding earn-and-learn 

16 program opportunities offered by employers in 

17 conjunction with institutions of higher edu18 cation. 

19 ‘‘(B) The number of students who partici20 pated in programs assisted under this section. 

21 ‘‘(C) The percentage of students partici22 pating in programs assisted under this section 

23 who successfully completed the program in the 

24 time described in subsection (d)(1)(E). 


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1 ‘‘(D) The median earnings of program par2 ticipants— 

3 ‘‘(i) 1 year after exiting the program; 

4 and 

5 ‘‘(ii) 3 years after exiting the pro6 gram. 

7 ‘‘(E) The percentage of students partici8 pating in programs assisted under this section 

9 who successfully receive a recognized postsec10 ondary credential. 

11 ‘‘(F) The number of students served by 

12 programs receiving funding under this sec13 tion— 

14 ‘‘(i) 2 years after the end of the grant 

15 period; 

16 ‘‘(ii) 4 years after the end of the 

17 grant period. 

18 ‘‘(2) PROHIBITION.—Notwithstanding any other 

19 provision of law, the evaluation required by this sub20 section shall not be subject to any review outside the 

21 Institute for Education Sciences before such reports 

22 are submitted to Congress and the Secretary. 

23 ‘‘(3) PUBLICATION.—The evaluation required 

24 by this subsection shall be made publicly available on 

25 the website of the Department. 


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

2 ‘‘(1) EARN-AND-LEARN PROGRAM.—The term 

3 ‘earn-and-learn program’ means an education pro4 gram, including an apprenticeship program, that 

5 provides students with structured, sustained, and 

6 paid on-the-job training and accompanying, for cred7 it, classroom instruction that— 

8 ‘‘(A) is for a period of between 3 months 

9 and 2 years; and 

10 ‘‘(B) leads to, on completion of the pro11 gram, a recognized postsecondary credential. 

12 ‘‘(2) ELIGIBLE PARTNERSHIP.—The term ‘eligi13 ble partnership’ shall mean a consortium that in14 cludes— 

15 ‘‘(A) one or more businesses; and 

16 ‘‘(B) one or more institutions of higher 

17 education. 

18 ‘‘(3) IN-DEMAND INDUSTRY SECTOR OR OCCU19 PATION.—The term ‘in-demand industry sector or 

20 occupation’ has the meaning given the term in sec21 tion 3 of the Workforce Innovation and Opportunity 

22 Act (29 U.S.C. 3102). 

23 ‘‘(4) ON-THE-JOB TRAINING.—The term ‘on24 the-job training’ has the meaning given the term in 


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1 section 3 of the Workforce Innovation and Oppor2 tunity Act (29 U.S.C. 3102). 

3 ‘‘(5) RECOGNIZED POSTSECONDARY CREDEN4 TIAL.—The term ‘recognized postsecondary creden5 tial’ has the meaning given the term in section 3 of 

6 the Workforce Innovation and Opportunity Act (29 

7 U.S.C. 3102). 

8 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to carry out this section 

10 $183,204,000 for fiscal year 2019 and each of the 5 suc11 ceeding fiscal years.’’. 

12 TITLE III—INSTITUTIONAL AID 

13 SEC. 301. STRENGTHENING INSTITUTIONS. 

14 Part A of title III (20 U.S.C. 1057 et seq.) is amend15 ed— 

16 (1) in the part heading for part A, by inserting 

17 ‘‘MINORITY-SERVING’’ after ‘‘STRENGTHENING’’; 

18 (2) in section 311— 

19 (A) by striking subsection (b) and redesig20 nating subsections (c) and (d) as subsections 

21 (b) and (c), respectively; 

22 (B) in subsection (b) (as so redesig23 nated)— 

24 (i) by striking paragraph (6) and in25 serting the following: 


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1 ‘‘(6) Tutoring, counseling, advising, and stu2 dent service programs designed to improve academic 

3 success, including innovative and customized instruc4 tional courses (which may include remedial edu5 cation and English language instruction) designed to 

6 help retain students and move the students rapidly 

7 into core courses and through program completion.’’; 

8 (ii) in paragraph (8), by striking ‘‘ac9 quisition of equipment for use in strength10 ening funds management’’ and inserting 

11 ‘‘acquisition of technology, services, and 

12 equipment for use in strengthening funds 

13 and administrative management’’; 

14 (iii) in paragraph (12), by striking 

15 ‘‘Creating’’ and all that follows through 

16 ‘‘technologies,’’ and inserting ‘‘Innovative 

17 learning models and creating or improving 

18 facilities for Internet or other innovative 

19 technologies,’’; 

20 (iv) by redesignating paragraph (13) 

21 as paragraph (18); and 

22 (v) by inserting after paragraph (12) 

23 the following: 

24 ‘‘(13) Establishing community outreach pro25 grams that will encourage elementary school and 


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1 secondary school students to develop the academic 

2 skills and the interest to pursue postsecondary edu3 cation. 

4 ‘‘(14) The development, coordination, imple5 mentation, or improvement of career and technical 

6 education programs as defined in section 135 of the 

7 Carl D. Perkins Career and Technical Education 

8 Act of 2006 (20 U.S.C. 2355). 

9 ‘‘(15) Alignment and integration of career and 

10 technical education programs with programs of 

11 study leading to a bachelor’s degree, graduate de12 gree, or professional degree. 

13 ‘‘(16) Developing or expanding access to dual 

14 or concurrent enrollment programs and early college 

15 high school programs. 

16 ‘‘(17) Pay for success initiatives that improve 

17 time to completion and increase graduation rates.’’; 

18 and 

19 (C) in subsection (c) (as so redesignated), 

20 by adding at the end the following: 

21 ‘‘(4) SCHOLARSHIP.—An institution that uses 

22 grant funds provided under this part to establish or 

23 increase an endowment fund may use the income 

24 from such endowment fund to provide scholarships 

25 to students for the purposes of attending such instiVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 tution, subject to the limitation in section 

2 331(c)(3)(B)(i).’’; 

3 (3) in section 312— 

4 (A) in subsection (a), by striking ‘‘trans5 fers which the institution’’ and inserting ‘‘trans6 fers that the institution’’; 

7 (B) in subsection (b)(1)— 

8 (i) by redesignating subparagraphs 

9 (E) and (F) as subparagraphs (F) and 

10 (E), respectively; 

11 (ii) in subparagraph (E) (as so redes12 ignated), by inserting ‘‘(as defined in sec13 tion 103(20)(A))’’ after ‘‘State’’; and 

14 (iii) in subparagraph (F) (as so redes15 ignated), by striking ‘‘and’’ at the end; and 

16 (C) in subsection (b)— 

17 (i) by striking the period at the end of 

18 paragraph (2) and inserting ‘‘; and’’; and 

19 (ii) by inserting after paragraph (2) 

20 the following: 

21 ‘‘(3) except as provided in section 392(b), an 

22 institution that has a completion rate of at least 25 

23 percent that is calculated by counting a student as 

24 completed if that student— 


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1 ‘‘(A) graduates within 150 percent of the 

2 normal time for completion; or 

3 ‘‘(B) enrolled into another program at an 

4 institution for which the previous program pro5 vided substantial preparation within 150 per6 cent of the normal time for completion.’’; 

7 (4) in section 313— 

8 (A) in subsection (a)— 

9 (i) by striking ‘‘for 5 years’’ and in10 serting ‘‘for a period of 5 years’’; and 

11 (ii) by adding at the end the fol12 lowing: ‘‘Any funds awarded under this 

13 section that are not expended or used for 

14 the purposes for which the funds were paid 

15 within 10 years following the date on 

16 which the grant was awarded, shall be re17 paid to the Treasury.’’; and 

18 (B) by striking subsection (d); 

19 (5) in section 316— 

20 (A) in subsection (c)— 

21 (i) in paragraph (2)— 

22 (I) by striking subparagraph (A) 

23 and inserting the following: 


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1 ‘‘(A) the activities described in paragraphs 

2 (1) through (12) and (14) through (17) of sec3 tion 311(b);’’; 

4 (II) by striking subparagraphs 

5 (E) through (J); 

6 (III) by redesignating subpara7 graphs (K) and (L) as subparagraphs 

8 (E) and (F), respectively; 

9 (IV) by striking subparagraph 

10 (M); 

11 (V) by redesignating subpara12 graph (N) as subparagraph (G); and 

13 (VI) in subparagraph (G) (as so 

14 redesignated), by striking ‘‘(M)’’ and 

15 inserting ‘‘(F)’’; and 

16 (ii) by striking paragraph (3) and in17 serting the following: 

18 ‘‘(3) ENDOWMENT FUND.—A Tribal College or 

19 University seeking to establish or increase an endow20 ment fund shall abide by the requirements in section 

21 311(c).’’; and 

22 (B) in subsection (d)— 

23 (i) by striking paragraph (2) and in24 serting the following: 


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1 ‘‘(2) APPLICATION.—A Tribal College or Uni2 versity desiring to receive assistance under this sec3 tion shall submit an application to the Secretary 

4 pursuant to section 391.’’; and 

5 (ii) in paragraph (4)— 

6 (I) in subparagraph (A), by strik7 ing ‘‘part A of’’; and 

8 (II) in subparagraph (B), by 

9 striking ‘‘313(d)’’ and inserting 

10 ‘‘312(b)(3)’’; 

11 (6) in section 317— 

12 (A) in subsection (c)— 

13 (i) by striking paragraph (2) and in14 serting the following: 

15 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— 

16 Such programs may include— 

17 ‘‘(A) the activities described in paragraphs 

18 (1) through (17) of section 311(b); and 

19 ‘‘(B) other activities proposed in the appli20 cation submitted pursuant to subsection (d) 

21 that— 

22 ‘‘(i) contribute to carrying out the 

23 purpose of this section; and 

24 ‘‘(ii) are approved by the Secretary as 

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1 plication submitted under subsection (d).’’; 

2 and 

3 (ii) by adding at the end the fol4 lowing: 

5 ‘‘(3) ENDOWMENT FUND.—An Alaska Native6 serving institution and Native Hawaiian-serving in7 stitution seeking to establish or increase an endow8 ment fund shall abide by the requirements in section 

9 311(c).’’; and 

10 (B) in subsection (d)— 

11 (i) by striking paragraph (1) and re12 designating paragraphs (2) and (3) as 

13 paragraphs (1) and (2), respectively; 

14 (ii) in paragraph (1) (as so redesig15 nated)— 

16 (I) in the first sentence, by in17 serting ‘‘pursuant to section 391’’ 

18 after ‘‘to the Secretary’’; and 

19 (II) by striking the remaining 

20 sentences; and 

21 (iii) in paragraph (2) (as so redesig22 nated)— 

23 (I) in subparagraph (A), by strik24 ing ‘‘this part or part B.’’ and insertVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH 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) 

5 as subparagraph (B); 

6 (7) in section 318— 

7 (A) in subsection (b)— 

8 (i) in paragraph (1)— 

9 (I) in subparagraph (E), by 

10 striking ‘‘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)’’ and inserting 

25 ‘‘through (17) of section 311(b)’’; 


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1 (II) by striking subparagraph 

2 (D); and 

3 (III) by redesignating subpara4 graph (E) as subparagraph (D); and 

5 (ii) by striking paragraph (3) and in6 serting the following: 

7 ‘‘(3) ENDOWMENT FUND.—A Predominantly 

8 Black Institution seeking to establish or increase an 

9 endowment fund shall abide by the requirements in 

10 section 311(c).’’; 

11 (C) in subsection (f), by striking all after 

12 ‘‘Secretary’’ the first place such term appears 

13 and inserting ‘‘pursuant to section 391.’’; 

14 (D) by striking subsections (g) and (h); 

15 (E) by redesignating subsection (i) as sub16 section (g); and 

17 (F) in subsection (g) (as so redesignated), 

18 by striking ‘‘part A of’’; 

19 (8) in section 319— 

20 (A) in subsection (c)— 

21 (i) by striking paragraph (2) and in22 serting the following: 

23 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— 

24 Such programs may include— 


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1 ‘‘(A) the activities described in paragraphs 

2 (1) through (17) of section 311(b); and 

3 ‘‘(B) other activities proposed in the appli4 cation submitted pursuant to subsection (d) 

5 that— 

6 ‘‘(i) contribute to carrying out the 

7 purpose of this section; and 

8 ‘‘(ii) are approved by the Secretary as 

9 part of the review and approval of an ap10 plication submitted under subsection (d).’’; 

11 and 

12 (ii) by adding at the end the fol13 lowing: 

14 ‘‘(3) ENDOWMENT FUND.—A Native American15 serving, nontribal institution seeking to establish or 

16 increase an endowment fund shall abide by the re17 quirements in section 311(c).’’; and 

18 (B) in subsection (d)— 

19 (i) by striking paragraph (1) and in20 serting the following: 

21 ‘‘(1) APPLICATION.—A Native American-serv22 ing, nontribal institution desiring to receive assist23 ance under this section shall submit an application 

24 to the 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; 

24 ‘‘(C) conducting research and data collec25 tion for Asian American and Native American 


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1 Pacific Islander populations and subpopula2 tions; 

3 ‘‘(D) establishing partnerships with com4 munity-based organizations serving Asian 

5 Americans and Native American Pacific Island6 ers; and 

7 ‘‘(E) other activities proposed in the appli8 cation submitted pursuant to subsection (d) 

9 that— 

10 ‘‘(i) contribute to carrying out the 

11 purpose of this section; and 

12 ‘‘(ii) are approved by the Secretary as 

13 part of the review and approval of an ap14 plication submitted under subsection (d).’’; 

15 and 

16 (ii) by adding at the end the fol17 lowing: 

18 ‘‘(3) ENDOWMENT FUND.—An Asian American 

19 and Native American Pacific Islander-serving insti20 tution 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 sub12 paragraph (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 insert19 ing the following : 

20 ‘‘(a) AUTHORIZED ACTIVITIES.—From amounts 

21 available under section 399(a)(2) for any fiscal year, the 

22 Secretary shall make grants (under section 324) to insti23 tutions which have applications approved by the Secretary 

24 (under 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 

9 teach in a public elementary or secondary school in 

10 the State that shall include, as part of such pro11 gram, 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 

16 of projects or activities that are described in the 

17 grant application and that are approved, in advance, 

18 by the Secretary, except that not more than two per19 cent of the grant amount may be used for this pur20 pose. 

21 ‘‘(7) Other activities proposed in the application 

22 submitted pursuant to section 325 that— 

23 ‘‘(A) contribute to carrying out the pur24 poses 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 insert5 ing 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 insert13 ing 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 

17 not expended or used for the purposes for which the funds 

18 were paid within 10 years following the date on which the 

19 grant was awarded, shall be repaid to the Treasury.’’; 

20 (B) by striking subsection (c) and insert21 ing 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 sci11 entific disciplines in which African Americans are 

12 underrepresented; 

13 ‘‘(3) acquisition of real property that is adja14 cent to the campus in connection with the construc15 tion, renovation, or addition to or improvement of 

16 campus facilities; 

17 ‘‘(4) services necessary for the implementation 

18 of projects or activities that are described in the 

19 grant application and that are approved, in advance, 

20 by the Secretary, except that not more than two per21 cent of the grant amount may be used for this pur22 pose; and 

23 ‘‘(5) other activities proposed in the application 

24 submitted under subsection (d) that— 


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1 ‘‘(A) contribute to carrying out the pur2 poses of this part; and 

3 ‘‘(B) are approved by the Secretary as part 

4 of the review and acceptance of such applica5 tion.’’; 

6 (C) in subsection (e)(1)— 

7 (i) in subparagraph (W), by striking 

8 ‘‘and’’ at the end; 

9 (ii) in subparagraph (X), by striking 

10 the period at the end and inserting ‘‘; 

11 and’’; 

12 (iii) by adding at the end the fol13 lowing: 

14 ‘‘(Y) University of the Virgin Islands 

15 School of Medicine.’’; 

16 (iv) in each of paragraphs (2) and (3) 

17 of subsection (f), by striking ‘‘(X)’’ and in18 serting ‘‘(Y)’’; and 

19 (v) in subsection (g), by striking 

20 ‘‘2008’’ each place such term appears and 

21 inserting ‘‘2018’’; and 

22 (4) in section 327— 

23 (A) by striking the designation and head24 ing for subsection (a); and 

25 (B) by striking subsection (b). 


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1 SEC. 303. HISTORICALLY BLACK COLLEGE AND UNIVER2 SITY 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) by striking ‘‘escrow account’’ each 

7 place it appears and inserting ‘‘bond insurance 

8 fund’’; and 

9 (B) in subsection (b)— 

10 (i) in paragraph (1), by striking ‘‘an’’ 

11 and inserting ‘‘a’’; and 

12 (ii) in paragraph (8), in the matter 

13 preceding subparagraph (A), by striking 

14 ‘‘an’’ and inserting ‘‘a’’; 

15 (2) in section 345, by striking paragraph (9) 

16 and inserting the following: 

17 ‘‘(9) may, directly or by grant or contract, pro18 vide financial counseling and technical assistance to 

19 eligible institutions to prepare the institutions to 

20 qualify, apply for, and maintain a capital improve21 ment loan, including a loan under this part; and’’; 

22 and 

23 (3) in section 347(c), by striking paragraph (2) 

24 and inserting the following: 

25 ‘‘(2) REPORT.—On an annual basis, the Advi26 sory Board shall prepare and submit to the authorVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00135 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 izing committees a report on the status of the his2 torically Black colleges and universities described in 

3 paragraph (1)(A) and an overview of all loans in the 

4 capital financing program, including the most recent 

5 loans awarded in the fiscal year in which the report 

6 is submitted. The report shall include administrative 

7 and legislative recommendations, as needed, for ad8 dressing the issues related to construction financing 

9 facing historically Black colleges and universities.’’. 

10 SEC. 304. MINORITY SCIENCE AND ENGINEERING IMPROVE11 MENT PROGRAM. 

12 Part E of title III (20 U.S.C. 1067 et seq.) is amend13 ed— 

14 (1) in section 353(a)— 

15 (A) in paragraph (1), by striking ‘‘365(6)’’ 

16 and inserting ‘‘359(6)’’; 

17 (B) in paragraph (2), by striking ‘‘365(7)’’ 

18 and inserting ‘‘359(7)’’; 

19 (C) in paragraph (3), by striking ‘‘365(8)’’ 

20 and inserting ‘‘359(8)’’; and 

21 (D) in paragraph (5), by striking ‘‘365(9)’’ 

22 and inserting ‘‘359(9)’’; 

23 (2) by striking subpart 2; 


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1 (3) by redesignating subpart 3 as subpart 2 

2 and redesignating sections 361 through 365 as sec3 tions 355 through 359, respectively; 

4 (4) in section 355 (as so redesignated), by 

5 striking paragraph (5); 

6 (5) in section 356(a) (as so redesignated), by 

7 striking ‘‘determined under section 361)’’ and in8 serting ‘‘determined under section 355)’’; and 

9 (6) in section 359(2) (as so redesignated)— 

10 (A) by inserting ‘‘American’’ after 

11 ‘‘Black’’; and 

12 (B) by striking ‘‘Hispanic (including’’ and 

13 inserting ‘‘Hispanic American (including’’. 

14 SEC. 305. STRENGTHENING HISTORICALLY BLACK COL15 LEGES AND UNIVERSITIES AND OTHER MI16 NORITY-SERVING INSTITUTIONS. 

17 Section 371 (20 U.S.C. 1067q) is amended— 

18 (1) in subsection (b)(2)(D)(iii), by striking 

19 ‘‘section 311(c)’’ and inserting ‘‘section 311(b)’’; 

20 and 

21 (2) in subsection (c)(9)(F)(ii), by striking ‘‘part 

22 A of’’. 

23 SEC. 306. GENERAL PROVISIONS. 

24 Part G of title III (20 U.S.C. 1068 et seq.) is amend25 ed— 


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1 (1) in section 391(b)— 

2 (A) in paragraph (1), by striking ‘‘institu3 tional management’’ and all that follows 

4 through the semicolon at the end and inserting 

5 ‘‘institutional management, and use the grant 

6 to provide for, and lead to, institutional self7 sustainability and growth (including measurable 

8 objectives for the institution and the Secretary 

9 to use in monitoring the effectiveness of activi10 ties under this title);’’; 

11 (B) in paragraph (7)— 

12 (i) by striking subparagraph (C) and 

13 redesignating subparagraphs (D) and (E) 

14 as subparagraphs (C) and (D), respec15 tively; and 

16 (ii) in subparagraph (D) (as so redes17 ignated), strike ‘‘and’’ at the end; 

18 (C) by striking paragraph (8) and insert19 ing the following: 

20 ‘‘(8) set forth a 5-year plan for improving the 

21 assistance provided by the institution; and’’; and 

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

23 ‘‘(9) submit such enrollment data as may be 

24 necessary to demonstrate that the institution is a 

25 minority-serving institution.’’; 


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1 (2) in section 392— 

2 (A) in subsection (b)— 

3 (i) in the subsection heading, after 

4 ‘‘EXPENDITURES’’ insert ‘‘; COMPLETION

5 RATES’’; 

6 (ii) in paragraph (1), insert ‘‘or 

7 312(b)(3)’’ after ‘‘312(b)(1)(B)’’; and 

8 (iii) in paragraph (2)— 

9 (I) in the matter preceding sub10 paragraph (A)— 

11 (aa) by inserting ‘‘or 

12 312(b)(3)’’ after ‘‘312(b)(1)(B)’’; 

13 and 

14 (bb) by inserting ‘‘Amer15 ican’’ after ‘‘Hispanic’’; and 

16 (II) in subparagraph (A), by in17 serting ‘‘or section 312(b)(3)’’ after 

18 ‘‘312(b)(1)’’; and 

19 (B) by striking subsection (c) and insert20 ing the following: 

21 ‘‘(c) WAIVER AUTHORITY WITH RESPECT TO INSTI22 TUTIONS LOCATED IN AN AREA AFFECTED BY A MAJOR

23 DISASTER.— 

24 ‘‘(1) WAIVER AUTHORITY.—Notwithstanding 

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1 cific reference to this section, in the case of a major 

2 disaster, the Secretary may waive for affected insti3 tutions— 

4 ‘‘(A) the eligibility data requirements set 

5 forth in section 391(d) and section 521(e); 

6 ‘‘(B) the allotment requirements under sec7 tion 324; and 

8 ‘‘(C) the use of the funding formula devel9 oped pursuant to section 326(f)(3); 

10 ‘‘(2) DEFINITIONS.—In this subsection: 

11 ‘‘(A) AFFECTED INSTITUTION.—The term 

12 ‘affected institution’ means an institution of 

13 higher education that— 

14 ‘‘(i) is— 

15 ‘‘(I) a part A institution (which 

16 term shall have the meaning given the 

17 term ‘eligible institution’ under sec18 tion 312(b) or section 502(a)(6)); or 

19 ‘‘(II) a part B institution, as 

20 such term is defined in section 

21 322(2), or as identified in section 

22 326(e); 

23 ‘‘(ii) is located in an area affected by 

24 a major disaster; and 


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1 ‘‘(iii) is able to demonstrate that, as a 

2 result of the impact of a major disaster, 

3 the institution— 

4 ‘‘(I) incurred physical damage; 

5 ‘‘(II) has pursued collateral 

6 source compensation from insurance, 

7 the Federal Emergency Management 

8 Agency, and the Small Business Ad9 ministration, as appropriate; and 

10 ‘‘(III) was not able to fully re11 open in existing facilities or to fully 

12 reopen to the pre-disaster enrollment 

13 levels. 

14 ‘‘(B) MAJOR DISASTER.—The term ‘major 

15 disaster’ has the meaning given such term in 

16 section 102(2) of the Robert T. Stafford Dis17 aster Relief and Emergency Assistance Act (42 

18 U.S.C. 5122(2)).’’; and 

19 (3) in section 399, by striking subsection (a) 

20 and inserting the following: 

21 ‘‘(a) AUTHORIZATIONS.— 

22 ‘‘(1) PART A.—(A) There are authorized to be 

23 appropriated to carry out section 316, $27,599,000 

24 for each of fiscal years 2019 through 2024. 


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1 ‘‘(B) There are authorized to be appropriated 

2 to carry out section 317, $13,802,000 for each of 

3 fiscal years 2019 through 2024. 

4 ‘‘(C) There are authorized to be appropriated to 

5 carry out section 318, $9,942,000 for each of fiscal 

6 years 2019 through 2024. 

7 ‘‘(D) There are authorized to be appropriated 

8 to carry out section 319, $3,348,000 for each of fis9 cal years 2019 through 2024. 

10 ‘‘(E) There are authorized to be appropriated 

11 to carry out section 320, $3,348,000 for each of fis12 cal years 2019 through 2024. 

13 ‘‘(2) PART B.—(A) There are authorized to be 

14 appropriated to carry out part B (other than section 

15 326), $244,694,000 for each of fiscal years 2019 

16 through 2024. 

17 ‘‘(B) There are authorized to be appropriated 

18 to carry out section 326, $63,281,000 for each of 

19 fiscal years 2019 through 2024. 

20 ‘‘(3) PART D.—There are authorized to be ap21 propriated to carry out part D, $20,484,000 for 

22 each of fiscal years 2019 through 2024. Of the 

23 amount authorized, 1.63 percent shall be reserved 

24 for administrative expenses. 


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1 ‘‘(4) PART E.—There are authorized to be ap2 propriated to carry out subpart 1 of part E, 

3 $9,648,000 for each of fiscal years 2019 through 

4 2024.’’. 

5 TITLE IV—STUDENT ASSISTANCE 

6 PART A—GRANTS TO STUDENTS IN ATTENDANCE 

7 AT INSTITUTIONS OF HIGHER EDUCATION 

8 SEC. 401. FEDERAL PELL GRANTS. 

9 (a) REAUTHORIZATION.—Section 401(a) (20 U.S.C. 

10 1070a(a)) is amended— 

11 (1) by striking ‘‘fiscal year 2017’’ and inserting 

12 ‘‘fiscal year 2024’’; and 

13 (2) by inserting ‘‘an eligible program at’’ after 

14 ‘‘attendance at’’. 

15 (b) FEDERAL PELL GRANT BONUS.— 

16 (1) AMENDMENTS.—Section 401(b) (20 U.S.C. 

17 1070a(b)) is amended— 

18 (A) in paragraph (7)(A)(iii)— 

19 (i) by inserting ‘‘and paragraph (9)’’ 

20 after ‘‘this paragraph’’; and 

21 (ii) by inserting before the semicolon 

22 at the end the following: ‘‘and to provide 

23 the additional amount required by para24 graph (9)’’; and 

25 (B) by adding at the end the following: 


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1 ‘‘(9) FEDERAL PELL GRANT BONUS.— 

2 ‘‘(A) IN GENERAL.—Notwithstanding any 

3 other provision of this subsection and from the 

4 amounts made available pursuant to paragraph 

5 (7)(A)(iii) for the purposes of this paragraph, 

6 an eligible student who is receiving a Federal 

7 Pell Grant for an award year shall receive an 

8 amount in addition to such Federal Pell Grant 

9 for each payment period of such award year for 

10 which the student— 

11 ‘‘(i) is receiving such Federal Pell 

12 Grant as long as the amount of such Fed13 eral Pell Grant does not exceed the max14 imum amount of a Federal Pell Grant 

15 award determined under paragraph (2)(A) 

16 for such award year; and 

17 ‘‘(ii) is carrying a work load that— 

18 ‘‘(I) is greater than the normal 

19 full-time work load for the course of 

20 study the student is pursuing, as de21 termined by the institution of higher 

22 education; and 

23 ‘‘(II) will lead to the completion 

24 of not less than 30 credit hours (or 

25 the equivalent coursework) upon the 


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1 completion of the final payment pe2 riod for which the student is receiving 

3 the Federal Pell Grant described in 

4 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 

9 each payment period of such award year de10 scribed in clauses (i) and (ii) of subparagraph 

11 (A).’’. 

12 (2) EFFECTIVE DATE.—The amendments made 

13 by paragraph (1) shall take effect with respect to 

14 award year 2018–2019 and each succeeding award 

15 year. 

16 (c) PERIOD OF ELIGIBILITY FOR GRANTS.—Section 

17 401(c) (20 U.S.C. 1070a(c)) is amended by adding at the 

18 end the following: 

19 ‘‘(6)(A) The Secretary shall issue to each stu20 dent receiving a Federal Pell Grant, an annual sta21 tus report which shall— 

22 ‘‘(i) inform the student of the remaining 

23 period during which the student may receive 

24 Federal Pell Grants in accordance with para25 graph (5), and provide access to a calculator to 


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1 assist the student in making such determina2 tion; 

3 ‘‘(ii) include an estimate of the Federal 

4 Pell Grant amounts which may be awarded for 

5 such remaining period based on the student’s 

6 award amount determined under subsection 

7 (b)(2)(A) for the most recent award year; 

8 ‘‘(iii) explain how the estimate was cal9 culated and any assumptions underlying the es10 timate; 

11 ‘‘(iv) explain that the estimate may be af12 fected if there is a change— 

13 ‘‘(I) in the student’s financial cir14 cumstances; or 

15 ‘‘(II) the availability of Federal fund16 ing; and 

17 ‘‘(v) describe how the remaining period 

18 during which the student may receive Federal 

19 Pell Grants will be affected by whether the stu20 dent is enrolled as a full-time student. 

21 ‘‘(B) Nothing in this paragraph shall be con22 strued to prohibit an institution from offering addi23 tional counseling to a student with respect to Fed24 eral Pell Grants, but such counseling shall not delay 


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1 or impede disbursement of a Federal Pell Grant 

2 award to the student.’’. 

3 (d) DISTRIBUTION OF GRANTS TO STUDENTS.—Sec4 tion 401(e) (20 U.S.C. 1070a(e)) is amended by striking 

5 the first sentence and inserting ‘‘Payments under this sec6 tion shall be made in the same manner as disbursements 

7 under section 465(a).’’. 

8 (e) INSTITUTIONAL INELIGIBILITY BASED ON DE9 FAULT RATES.—Section 401(j) of such Act (20 U.S.C. 

10 1070a(j)) is amended by adding at the end the following: 

11 ‘‘(3) SUNSET.—The provisions of this sub12 section shall not apply after the transition period de13 scribed in section 481B(e)(3).’’. 

14 (f) PREVENTION OF FRAUD.—Section 401 (20 

15 U.S.C. 1070a) is amended by adding at the end the fol16 lowing: 

17 ‘‘(k) PREVENTION OF FRAUD.— 

18 ‘‘(1) IN GENERAL.—No Federal Pell Grant 

19 shall be awarded under this subpart to any indi20 vidual who, with respect to not less than any 3 pay21 ment periods, for each such payment period— 

22 ‘‘(A) received at least a portion of a Fed23 eral Pell Grant award; and 


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1 ‘‘(B) did not complete any credit hours (or 

2 credit hour equivalencies) for which the indi3 vidual was enrolled. 

4 ‘‘(2) WAIVER.—The financial aid administrator 

5 at an institution may waive the requirement of para6 graph (1), if the financial aid administrator— 

7 ‘‘(A) determines that the student was un8 able to complete the credit hours described in 

9 paragraph (1)(B) due to circumstances beyond 

10 the student’s control; and 

11 ‘‘(B) makes and documents such a deter12 mination on an individual basis. 

13 ‘‘(3) CIRCUMSTANCES DESCRIBED.—For pur14 poses of paragraph (2), circumstances beyond the 

15 student’s control— 

16 ‘‘(A) may include the student withdrawing 

17 from classes due to illness; and 

18 ‘‘(B) shall not include withdrawing to 

19 avoid a particular grade.’’. 

20 (g) REPORT ON COSTS OF FEDERAL PELL GRANT

21 PROGRAM.—Section 401 (20 U.S.C. 1070a) is further 

22 amended, as amended by subsections (a) through (f), by 

23 adding at the end the following: 

24 ‘‘(l) REPORT ON COSTS OF FEDERAL PELL GRANT

25 PROGRAM.—Not later than October 31 of each year, the 


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1 Secretary shall prepare and submit a report to the author2 izing committees that includes the following information 

3 with respect to spending for the Federal Pell Grant pro4 gram for the preceding fiscal year: 

5 ‘‘(1) The total obligations and expenditures for 

6 the program for such fiscal year. 

7 ‘‘(2) A comparison of the total obligations and 

8 expenditures for the program for such fiscal year— 

9 ‘‘(A) to the most recently available Con10 gressional Budget Office baseline for the pro11 gram; and 

12 ‘‘(B) in the case in which such fiscal year 

13 is fiscal year 2019, 2020, 2021, 2022, 2023, or 

14 2024, to the Congressional Budget Office cost 

15 estimate for the program included in the report 

16 of the Committee on Education and the Work17 force of the House of Representatives accom18 panying the PROSPER Act, as approved by the 

19 Committee. 

20 ‘‘(3) The total obligations and expenditures for 

21 the maximum Federal Pell Grant for which a stu22 dent is eligible, as specified in the last enacted ap23 propriation Act applicable to such fiscal year. 

24 ‘‘(4) A comparison of the total obligations and 

25 expenditures for the maximum Federal Pell Grant 


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1 for which a student is eligible, as specified in the 

2 last enacted appropriation Act applicable to such fis3 cal year— 

4 ‘‘(A) to the most recently available Con5 gressional Budget Office baseline for such max6 imum Federal Pell Grant; 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 

10 estimate for such maximum Federal Pell Grant 

11 included in the report of the Committee on 

12 Education and the Workforce of the House of 

13 Representatives accompanying the PROSPER 

14 Act, as approved by the Committee. 

15 ‘‘(5) The total mandatory obligations and ex16 penditures for the amount of the increase in such 

17 maximum Federal Pell Grant required by subsection 

18 (b)(7)(B) for such fiscal year. 

19 ‘‘(6) A comparison of the total mandatory obli20 gations and expenditures for the amount of the in21 crease in such maximum Federal Pell Grant re22 quired by subsection (b)(7)(B)— 

23 ‘‘(A) to the most recently available Con24 gressional Budget Office baseline for the in25 crease; 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 

4 estimate for the increase included in the report 

5 of the Committee on Education and the Work6 force of the House of Representatives accom7 panying the PROSPER Act, as approved by the 

8 Committee. 

9 ‘‘(7) The total mandatory obligations and ex10 penditures for the Federal Pell Grant Bonus re11 quired by subsection (b)(9) for such fiscal year. 

12 ‘‘(8) A comparison of the total mandatory obli13 gations and expenditures for the Federal Pell Grant 

14 Bonus required by subsection (b)(9) for such fiscal 

15 year— 

16 ‘‘(A) to the most recently available Con17 gressional Budget Office baseline for such 

18 bonus; and 

19 ‘‘(B) in the case in which such fiscal year 

20 is fiscal year 2019, 2020, 2021, 2022, 2023, or 

21 2024, to the Congressional Budget Office cost 

22 estimate for such bonus included in the report 

23 of the Committee on Education and the Work24 force of the House of Representatives accomVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 panying the PROSPER Act, as approved by the 

2 Committee.’’. 

3 SEC. 402. FEDERAL TRIO PROGRAMS. 

4 (a) PROGRAM AUTHORITY; AUTHORIZATION OF AP5 PROPRIATIONS.—Section 402A (20 U.S.C. 1070a–11) is 

6 amended— 

7 (1) in subsection (c)— 

8 (A) by amending subparagraph (A) of 

9 paragraph (2) to read as follows: 

10 ‘‘(A) ACCOUNTABILITY FOR OUTCOMES.— 

11 In making grants under this chapter, the Sec12 retary shall comply with the following require13 ments: 

14 ‘‘(i) The Secretary shall consider each 

15 applicant’s prior success in achieving high 

16 quality service delivery, as determined 

17 under subsection (f), under the particular 

18 program for which funds are sought. The 

19 level of consideration given the factor of 

20 prior success in achieving high quality 

21 service delivery shall not vary from the 

22 level of consideration given such factor 

23 during fiscal years 1994 through 1997, ex24 cept that grants made under section 402H 

25 shall not be given such consideration. 


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1 ‘‘(ii) The Secretary shall not give 

2 points for prior success in achieving high 

3 quality service delivery to any current 

4 grantee that, during the then most recent 

5 period for which funds were provided, did 

6 not meet or exceed two or more objectives 

7 established in the eligible entity’s applica8 tion based on the performance measures 

9 described in subsection (f). 

10 ‘‘(iii) From the amounts awarded 

11 under subsection (g) for a program under 

12 this chapter (other than a program under 

13 section 402G and 402H) for any fiscal 

14 year in which the Secretary conducts a 

15 competition for the award of grants or con16 tracts under such programs, the Secretary 

17 shall reserve not less than 10 percent of 

18 such available amount to award grants or 

19 contracts to applicants who have not pre20 viously received a grant or contract under 

21 this chapter. If the Secretary determines 

22 that there are an insufficient number of 

23 qualified applicants to use the full amount 

24 reserved under the preceding sentence, the 

25 Secretary shall use the remainder of such 


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1 amount to award grants or contracts to 

2 applicants who have previously received a 

3 grant or contract under this chapter.’’; 

4 (B) in paragraph (3)— 

5 (i) in subparagraph (A)— 

6 (I) by striking ‘‘as provided in 

7 subparagraph (B)’’ and inserting ‘‘as 

8 provided in subparagraph (C)’’; 

9 (II) by striking ‘‘experience’’ and 

10 inserting ‘‘success in achieving high 

11 quality service delivery’’; 

12 (ii) by redesignating subparagraph 

13 (B) as subparagraph (C); and 

14 (iii) by inserting after subparagraph 

15 (A) the following new subparagraph: 

16 ‘‘(B) To ensure that congressional priorities in 

17 conducting competitions for grants and contracts 

18 under this chapter are implemented, the Secretary 

19 shall not impose additional criteria for the 

20 prioritization of applications for such grants or con21 tracts (including additional competitive, absolute, or 

22 other criteria) beyond the criteria described in this 

23 chapter.’’; 

24 (C) in paragraph (6)— 


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1 (i) by striking the period at the end of 

2 the second sentence and inserting ‘‘, as 

3 long as the program is serving a different 

4 population or a different campus.’’; 

5 (ii) by striking ‘‘the programs author6 ized by’’ and inserting ‘‘sections 402B, 

7 402C, 402D, and 402F of’’; 

8 (iii) by striking ‘‘The Secretary shall 

9 encourage’’ and inserting the following: 

10 ‘‘(A) The Secretary shall encourage’’; 

11 (iv) by striking ‘‘The Secretary shall 

12 permit’’ and inserting the following: 

13 ‘‘(B) The Secretary shall permit’’; 

14 (D) in paragraph (7), by striking ‘‘8 

15 months’’ each place it appears and inserting 

16 ‘‘90 days’’; 

17 (E) in paragraph (8)— 

18 (i) in subparagraph (A)— 

19 (I) in the matter preceding clause 

20 (i), by striking ‘‘Not later than 180 

21 days after the date of enactment of 

22 the Higher Education Opportunity 

23 Act,’’ and inserting ‘‘Not later than 

24 90 days before the commencement of 


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1 each competition for a grant under 

2 this chapter,’’; 

3 (II) in clause (iii), by striking 

4 ‘‘prior experience points for high qual5 ity service delivery are awarded’’ and 

6 inserting ‘‘application scores are ad7 justed for prior success in achieving 

8 high quality service delivery’’; and 

9 (III) in clause (v), by striking 

10 ‘‘prior experience points for’’ and in11 serting ‘‘the adjustment in scores for 

12 prior success in achieving’’; 

13 (ii) by striking subparagraph (B) and 

14 redesignating subparagraph (C) as sub15 paragraph (B); and 

16 (iii) in subparagraph (B), as so redes17 ignated— 

18 (I) in clause (iii)— 

19 (aa) in the matter preceding 

20 subclause (I), by striking ‘‘prior 

21 experience points for’’ and insert22 ing ‘‘points for prior success in 

23 achieving’’; and 

24 (bb) in subclause (II), by 

25 striking ‘‘prior experience points’’ 


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1 and inserting ‘‘points for prior 

2 success in achieving high quality 

3 service delivery’’; and 

4 (II) in clause (vi), by inserting 

5 before the period at the end the fol6 lowing: ‘‘from funds reserved under 

7 subsection (g)’’; and 

8 (F) by adding at the end the following: 

9 ‘‘(9) MATCHING REQUIREMENT.— 

10 ‘‘(A) IN GENERAL.—The Secretary shall 

11 not approve an application submitted under sec12 tion 402B, 402C, 402D, 402E, or 402F unless 

13 such application— 

14 ‘‘(i) provides that the eligible entity 

15 will provide, from State, local, institu16 tional, or private funds, not less than 20 

17 percent of the cost of the program, which 

18 matching funds may be provided in cash or 

19 in kind and may be accrued over the full 

20 duration of the grant award period, except 

21 that the eligible entity shall make substan22 tial progress towards meeting the matching 

23 requirement in each year of the grant 

24 award period; 


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1 ‘‘(ii) specifies the methods by which 

2 matching funds will be paid; and 

3 ‘‘(iii) includes provisions designed to 

4 ensure that funds provided under this 

5 chapter shall supplement and not supplant 

6 funds expended for existing programs. 

7 ‘‘(B) SPECIAL RULE.—Notwithstanding 

8 the matching requirement described in subpara9 graph (A), the Secretary may by regulation 

10 modify the percentage requirement described in 

11 subparagraph (A). The Secretary may approve 

12 an eligible entity’s request for a reduced match 

13 percentage— 

14 ‘‘(i) at the time of application if the 

15 eligible entity demonstrates significant eco16 nomic hardship that precludes the eligible 

17 entity from meeting the matching require18 ment; or 

19 ‘‘(ii) in response to a petition by an 

20 eligible entity subsequent to a grant award 

21 under section 402B, 402C, 402D, 402E, 

22 or 402F if the eligible entity demonstrates 

23 that the matching funds described in its 

24 application are no longer available and the 


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1 eligible entity has exhausted all revenues 

2 for replacing such matching funds.’’; 

3 (2) in subsection (d)(3), by adding at the end 

4 the following new sentence: ‘‘In addition, the Sec5 retary shall host at least one virtual, interactive edu6 cation session using telecommunications technology 

7 to ensure that any interested applicants have access 

8 to technical assistance.’’; 

9 (3) in subsection (e)— 

10 (A) in paragraph (1)— 

11 (i) in subparagraph (C), by striking 

12 ‘‘or’’ at the end; 

13 (ii) in subparagraph (D), by striking 

14 the period at the end and inserting ‘‘; or’’; 

15 and 

16 (iii) by adding at the end the fol17 lowing new subparagraph: 

18 ‘‘(E) documentation that the student has been 

19 determined to be eligible for a Federal Pell Grant 

20 under section 401.’’; and 

21 (B) in paragraph (2)— 

22 (i) in subparagraph (C), by striking 

23 ‘‘or’’ at the end; 


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1 (ii) in subparagraph (D), by striking 

2 the period at the end and inserting ‘‘; or’’; 

3 and 

4 (iii) by adding at the end the fol5 lowing new subparagraph: 

6 ‘‘(E) documentation that the student has been 

7 determined to be eligible for a Federal Pell Grant 

8 under section 401.’’; 

9 (4) in subsection (f)— 

10 (A) in the heading of paragraph (1), by 

11 striking ‘‘PRIOR EXPERIENCE’’ and inserting 

12 ‘‘ACCOUNTABILITY FOR OUTCOMES’’; 

13 (B) in paragraph (1) by striking ‘‘experi14 ence of’’ and inserting ‘‘success in achieving’’; 

15 (C) in paragraph (3)— 

16 (i) in subparagraph (A)— 

17 (I) in clause (iv) by striking ‘‘rig18 orous secondary school program of 

19 study that will make such students el20 igible for programs such as the Aca21 demic Competitiveness Grants Pro22 gram’’ and inserting ‘‘secondary 

23 school program of study that will pre24 pare such students to enter postsecVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00160 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 ondary education without the need for 

2 remedial education’’; 

3 (II) by redesignating clauses (v) 

4 and (vi) as clauses (vi) and (vii), re5 spectively; and 

6 (III) by inserting after clause (iv) 

7 the following new clause: 

8 ‘‘(v) the completion of financial aid 

9 applications, including the Free Applica10 tion for Federal Student Aid described in 

11 section 483(a) and college admission appli12 cations;’’; 

13 (ii) in subparagraph (B)— 

14 (I) by redesignating clauses (i), 

15 (ii), (iii), (iv), (v), (vi), (vii) as sub16 clauses (I), (II), (III), (IV), (VII), 

17 (IX), and (X), respectively; 

18 (II) by inserting after subclause 

19 (IV), as so redesignated, the fol20 lowing: 

21 ‘‘(V) the reentry into secondary 

22 school of such students; 

23 ‘‘(VI) the enrollment of such stu24 dents into a general educational develVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00161 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 opment (commonly known as a 

2 ‘GED’) program;’’. 

3 (III) in subclause (VII), as so re4 designated, by striking ‘‘rigorous sec5 ondary school program of study that 

6 will make such students eligible for 

7 programs such as the Academic Com8 petitiveness Grants Program’’ and in9 serting ‘‘secondary school program of 

10 study that will prepare such students 

11 to enter postsecondary education with12 out the need for remedial education’’; 

13 (IV) by inserting after subclause 

14 (VII), as so redesignated, the fol15 lowing new subclause: 

16 ‘‘(VIII) the completion of financial aid 

17 applications, including the Free Applica18 tion for Federal Student Aid described in 

19 section 483(a) and college admission appli20 cations;’’; 

21 (V) by striking ‘‘(B) For pro22 grams authorized under section 

23 402C,’’ and inserting ‘‘(B)(i) For pro24 grams authorized under section 402C, 


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1 except in the case of projects that spe2 cifically target veterans,’’; and 

3 (VI) by adding at the end the fol4 lowing new clauses: 

5 ‘‘(ii) For programs authorized under sec6 tion 402C that specifically target veterans, the 

7 extent to which the eligible entity met or ex8 ceeded the entity’s objectives for such program 

9 with respect to— 

10 ‘‘(I) the delivery of service to a total 

11 number of students served by the program, 

12 as agreed upon by the entity and the Sec13 retary for the period; 

14 ‘‘(II) such students’ academic per15 formance, as measured by standardized 

16 tests; 

17 ‘‘(III) the retention and completion of 

18 participants in the project; 

19 ‘‘(IV) the provision of assistance to 

20 students served by the program in com21 pleting financial aid applications, including 

22 the Free Application for Federal Student 

23 Aid described in section 483(a) and college 

24 admission applications; 


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1 ‘‘(V) the enrollment of such students 

2 in 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 en9 rolled’’ and inserting ‘‘within six years 

10 of the initial enrollment of such stu11 dents in the program’’; and 

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 bacca17 laureate 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 stu22 dents 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 

9 following new clause: 

10 ‘‘(v) the attainment of doctoral de11 grees by former program participants with12 in 10 years of receiving a baccalaureate de13 gree.’’; and 

14 (v) in subparagraph (E)(ii), by insert15 ing ‘‘, or re-enrollment,’’ after ‘‘enroll16 ment’’; 

17 (5) in subsection (g)— 

18 (A) in the first sentence, by striking 

19 ‘‘$900,000,000 for fiscal year 2009 and such 

20 sums as may be necessary for’’ and inserting 

21 ‘‘$900,000,000 for fiscal year 2019 and’’; 

22 (B) in the second sentence— 

(i) by striking ‘‘no more than 1 23 ⁄2 of 1’’ 

24 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 

6 applications funded under the process out7 lined 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 

2 following 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), by striking paragraph (6) 

8 and inserting the following: 

9 ‘‘(6) connections to education or counseling 

10 services designed to— 

11 ‘‘(A) improve the financial literacy and 

12 economic literacy of students or the students’ 

13 parents in order to aid them in making in14 formed decisions about how to best finance 

15 their postsecondary education; and 

16 ‘‘(B) assist students and families regarding 

17 career choice.’’; 

18 (3) in subsection (c)(2), by striking ‘‘career’’ 

19 and inserting ‘‘academic’’; and 

20 (4) in subsection (d)— 

21 (A) by redesignating paragraphs (2), (3), 

22 and (4) as paragraphs (3), (4), and (5), respec23 tively; 

24 (B) by inserting after paragraph (1) the 

25 following new paragraph: 


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1 ‘‘(2) require an assurance that the remaining 

2 youths participating in the project proposed to be 

3 carried out in any application be low-income individ4 uals, first generation college students, or students 

5 who have a high risk for academic failure;’’; 

6 (C) in paragraph (4), as so redesignated— 

7 (i) by inserting ‘‘, section 402C,’’ 

8 after ‘‘under this section’’; and 

9 (ii) by striking ‘‘and’’ at the end; 

10 (D) in paragraph (5), as so redesignated, 

11 by striking the period at the end and inserting 

12 ‘‘; and’’; and 

13 (E) by adding at the end the following: 

14 ‘‘(6) require the grantee to maintain, to the ex15 tent practicable, a record of any services participants 

16 receive during the project year from another pro17 gram under this chapter or other federally funded 

18 programs serving similar populations to minimize 

19 the duplication of services.’’. 

20 (c) UPWARD BOUND.—Section 402C (20 U.S.C. 

21 1070a–13) is amended— 

22 (1) in subsection (b)— 

23 (A) in paragraph (4), by adding ‘‘and’’ at 

24 the end; and 


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1 (B) by striking paragraphs (5) and (6) and 

2 inserting the following: 

3 ‘‘(5) education or counseling services designed 

4 to— 

5 ‘‘(A) improve the financial literacy and 

6 economic literacy of students or the students’ 

7 parents in order to aid them in making in8 formed decisions about how to best finance 

9 their postsecondary education; and 

10 ‘‘(B) assist students and their families re11 garding career choice.’’; 

12 (2) in subsection (d)— 

13 (A) in paragraph (1), by striking ‘‘youth’’ 

14 and inserting ‘‘participants’’; 

15 (B) in paragraph (2), by striking ‘‘youth 

16 participating in the project’’ and inserting 

17 ‘‘project participants’’; and 

18 (C) in paragraph (5), by striking ‘‘youth 

19 participating in the project’’ and inserting 

20 ‘‘project participants’’; 

21 (3) in subsection (e)— 

22 (A) in paragraph (4), by striking ‘‘and’’ at 

23 the end; 

24 (B) by redesignating paragraph (5) as 

25 paragraph (6); and 


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1 (C) by inserting after paragraph (4) the 

2 following: 

3 ‘‘(5) require an assurance that individuals par4 ticipating in the project proposed in any application 

5 do not have access to services from another project 

6 funded under this section, section 402B, or section 

7 402F;’’; 

8 (D) in paragraph (6), as so redesignated, 

9 by striking the period at the end and inserting 

10 ‘‘; and’’; and 

11 (E) by adding at the end the following: 

12 ‘‘(6) for purposes of minimizing the duplication 

13 of services, require that the grantee maintain, to the 

14 extent practicable, a record of any services received 

15 by participants during the program year from an16 other program funded under this chapter, or any 

17 other Federally funded program that serves popu18 lations similar to the populations served by pro19 grams under this chapter.’’; and 

20 (4) by striking subsection (g) and redesignating 

21 subsection (h) as subsection (g). 

22 (d) STUDENT SUPPORT SERVICES.—Section 402D 

23 (20 U.S.C. 1070a–14) is amended— 


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1 (1) in subsection (a)(3), by inserting ‘‘low-in2 come and first generation college students, includ3 ing’’ after ‘‘success of’’; and 

4 (2) in subsection (b)(4)— 

5 (A) by striking ‘‘, including financial’’ and 

6 inserting ‘‘, including— 

7 ‘‘(A) financial’’; 

8 (B) by adding at the end the following: 

9 ‘‘(B) basic personal income, household 

10 money management, and financial planning 

11 skills; and 

12 ‘‘(C) basic economic decisionmaking 

13 skills;’’; and 

14 (C) in subsection (e)— 

15 (i) in paragraph (5), by striking 

16 ‘‘and’’ at the end; 

17 (ii) by redesignating paragraph (6) as 

18 paragraph (7); 

19 (iii) by inserting after paragraph (5) 

20 the following: 

21 ‘‘(6) require the grantee to maintain, to the ex22 tent practicable, a record of any services participants 

23 receive during the project year from another pro24 gram under this chapter or other federally funded 


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1 programs serving similar populations to minimize 

2 the duplication of services; and’’. 

3 (e) POSTBACCALAUREATE ACHIEVEMENT PROGRAM

4 AUTHORITY.—Section 402E (20 U.S.C. 1070a–15) is 

5 amended— 

6 (1) in subsection (b)(2), by striking ‘‘summer 

7 internships’’ and inserting ‘‘internships and faculty8 led research experiences’’; and 

9 (2) in subsection (d)— 

10 (A) in paragraph (3), by striking ‘‘and’’ at 

11 the end; 

12 (B) in paragraph (4)— 

13 (i) by striking ‘‘summer’’; 

14 (ii) by striking the period at the end 

15 and inserting ‘‘; and’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(5) the grantee to maintain, to the extent 

18 practicable, a record of any services participants re19 ceive during the project year from another program 

20 under this chapter or other federally funded pro21 gram serving similar populations to minimize the du22 plication of services.’’; and 

23 (3) in subsection (g), by striking ‘‘2009 through 

24 2014’’ and inserting ‘‘2019 through 2024’’. 


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1 (f) EDUCATIONAL OPPORTUNITY CENTERS.—Section 

2 402F (20 U.S.C. 1070a–16) is amended— 

3 (1) in subsection (a)— 

4 (A) in paragraph (1), by inserting ‘‘or re5 enter’’ after ‘‘pursue’’; and 

6 (B) in paragraph (3), by striking ‘‘of stu7 dents’’ and inserting ‘‘of such persons’’; 

8 (2) in subsection (b)(5), by striking ‘‘stu9 dents;’’and inserting the following: ‘‘students, includ10 ing— 

11 ‘‘(A) financial planning for postsecondary 

12 education; 

13 ‘‘(B) basic personal income, household 

14 money management, and financial planning 

15 skills; and 

16 ‘‘(C) basic economic decisionmaking 

17 skills;’’; and 

18 (3) in subsection (c)— 

19 (A) by redesignating paragraphs (2) and 

20 (3) as paragraphs (3) and (4), respectively; and 

21 (B) by inserting after paragraph (1) the 

22 following new paragraph: 

23 ‘‘(2) require an assurance that the remaining 

24 persons participating in the project proposed to be 


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1 carried out under any application be low-income in2 dividuals or first generation college students;’’; 

3 (C) in paragraph (3), as so redesignated, 

4 by striking ‘‘and’’ at the end; 

5 (D) in paragraph (4), as so redesignated, 

6 by striking the period at the end and inserting 

7 ‘‘; and’’; and 

8 (E) by adding at the end the following: 

9 ‘‘(5) require the grantee to maintain, to the ex10 tent practicable, a record of any services participants 

11 receive during the project year from another pro12 gram under this chapter or other federally funded 

13 program serving similar populations to minimize the 

14 duplication of services.’’. 

15 (g) STAFF DEVELOPMENT ACTIVITIES.—Section 

16 402G(b) (20 U.S.C. 1070a–17(b)) is amended— 

17 (1) in the matter preceding paragraph (1)— 

18 (A) by inserting ‘‘webinars and online 

19 classes,’’ after ‘‘seminars, workshops,’’; and 

20 (B) by striking ‘‘directors’’ and inserting 

21 ‘‘staff’’; and 

22 (2) in paragraph (3), by inserting ‘‘and innova23 tive’’ after ‘‘model’’. 

24 (h) REPORTS, EVALUATIONS, AND GRANTS FOR

25 PROJECT IMPROVEMENT AND DISSEMINATION.—SubVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 section (b) of section 402H (20 U.S.C. 1070a–18) is 

2 amended to read as follows: 

3 ‘‘(b) EVALUATIONS.— 

4 ‘‘(1) IN GENERAL.—For the purpose of improv5 ing the effectiveness of the programs assisted under 

6 this chapter, the Secretary shall make grants to or 

7 enter into contracts with one or more organizations 

8 to— 

9 ‘‘(A) evaluate the effectiveness of the pro10 grams assisted under this chapter; and 

11 ‘‘(B) disseminate information on the im12 pact of the programs in increasing the edu13 cation level of participants, as well as other ap14 propriate measures. 

15 ‘‘(2) ISSUES TO BE EVALUATED.—The evalua16 tions described in paragraph (1) shall measure the 

17 effectiveness of programs funded under this chapter 

18 in— 

19 ‘‘(A) meeting or exceeding the stated ob20 jectives regarding the outcome criteria under 

21 subsection (f) of section 402A; 

22 ‘‘(B) enhancing the access of low-income 

23 individuals and first-generation college students 

24 to postsecondary education; 


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1 ‘‘(C) preparing individuals for postsec2 ondary education; 

3 ‘‘(D) comparing the level of education com4 pleted by students who participate in the pro5 grams funded under this chapter with the level 

6 of education completed by students of similar 

7 backgrounds who do not participate in such 

8 programs; 

9 ‘‘(E) comparing the retention rates, drop10 out rates, graduation rates, and college admis11 sion and completion rates of students who par12 ticipate in the programs funded under this 

13 chapter with the rates of students of similar 

14 backgrounds who do not participate in such 

15 programs; and 

16 ‘‘(F) such other issues as the Secretary 

17 considers appropriate for inclusion in the eval18 uation. 

19 ‘‘(3) PROGRAM METHODS.—Such evaluations 

20 shall also investigate the effectiveness of alternative 

21 and innovative methods within programs funded 

22 under this chapter of increasing access to, and re23 tention of, students in postsecondary education. 

24 ‘‘(4) RESULTS.—The Secretary shall submit to 

25 the authorizing committees— 


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1 ‘‘(A) an interim report on the progress and 

2 preliminary results of the evaluation of each 

3 program funded under this chapter not later 

4 than 2 years following the date of enactment of 

5 the PROSPER Act; and 

6 ‘‘(B) a final report not later than 3 years 

7 following the date of enactment of such Act. 

8 ‘‘(5) PUBLIC AVAILABILITY.—All reports and 

9 underlying data gathered pursuant to this subsection 

10 shall be made available to the public upon request, 

11 in a timely manner following submission of the ap12 plicable reports under this subsection, except that 

13 any personally identifiable information with respect 

14 to a student participating in a program or project 

15 assisted under this chapter shall not be disclosed or 

16 made available to the public.’’. 

17 (i) IMPACT GRANTS.—Part A of title IV (20 U.S.C. 

18 1070 et seq.) is amended by inserting after section 402H 

19 (20 U.S.C. 1070a–28) the following: 

20 ‘‘SEC. 402I. IMPACT GRANTS. 

21 ‘‘(a) IN GENERAL.—From funds reserved under sub22 section (e), the Secretary shall make grants to improve 

23 postsecondary access and completion rates for qualified in24 dividuals from disadvantaged backgrounds. These grants 

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1 ondary access and completion grants or ‘IMPACT Grants’ 

2 and allow eligible entities to— 

3 ‘‘(1) create, develop, implement, replicate, or 

4 take to scale evidence-based, field-initiated innova5 tions, including through pay-for-success initiatives, 

6 to serve qualified individuals from disadvantaged 

7 backgrounds and improve student outcomes; and 

8 ‘‘(2) rigorously evaluate such innovations, in ac9 cordance with subsection (d). 

10 ‘‘(b) DESCRIPTION OF GRANTS.—The grants de11 scribed in subsection (a) shall include— 

12 ‘‘(1) early-phase grants to fund the develop13 ment, implementation, and feasibility testing of a 

14 program, which prior research suggests has a prom15 ise, for the purpose of determining whether the pro16 gram can successfully improve postsecondary access 

17 and completion rates; 

18 ‘‘(2) mid-phase grants to fund implementation 

19 and a rigorous evaluation of a program that has 

20 been successfully implemented under an early-phase 

21 grant described in paragraph (1); and 

22 ‘‘(3) expansion grants to fund implementation 

23 and a rigorous replication evaluation of a program 

24 that has been found to produce sizable, important 


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1 impacts under a mid-phase grant described in para2 graph (2) for the purposes of— 

3 ‘‘(A) determining whether such outcomes 

4 can be successfully reproduced and sustained 

5 over time; and 

6 ‘‘(B) identifying the conditions in which 

7 the project is most effective. 

8 ‘‘(c) REQUIREMENTS FOR APPROVAL OF APPLICA9 TIONS.—To receive a grant under this section, an eligible 

10 entity shall submit an application to the Secretary at such 

11 time, and in such manner as the Secretary may require, 

12 which shall include— 

13 ‘‘(1) an assurance that not less than two-thirds 

14 of the individuals who will participate in the pro15 gram proposed to be carried out with the grant will 

16 be— 

17 ‘‘(A) low-income individuals who are first 

18 generation college students; or 

19 ‘‘(B) individuals with disabilities; 

20 ‘‘(2) an assurance that any other individuals 

21 (not described in paragraph (1)) who will participate 

22 in such proposed program will be— 

23 ‘‘(A) low-income individuals; 

24 ‘‘(B) first generation college students; or 

25 ‘‘(C) individuals with disabilities; 


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1 ‘‘(3) a detailed description of the proposed pro2 gram, including how such program will directly ben3 efit students; 

4 ‘‘(4) the number of projected students to be 

5 served by the program; 

6 ‘‘(5) how the program will be evaluated; and 

7 ‘‘(6) an assurance that the individuals partici8 pating in the project proposed are individuals who 

9 do not have access to services from another pro10 grams funded under this section. 

11 ‘‘(d) EVALUATION.—Each eligible entity receiving a 

12 grant under this section shall conduct an independent 

13 evaluation of the effectiveness of the program carried out 

14 with such grant and shall submit to the Secretary, on an 

15 annual basis, a report that includes— 

16 ‘‘(1) a description of how funds received under 

17 this section were used; 

18 ‘‘(2) the number of students served by the 

19 project carried out under this section; and 

20 ‘‘(3) a quantitative analysis of the effectiveness 

21 of the project. 

22 ‘‘(e) FUNDING.—From amounts appropriated under 

23 section 402A(g), the Secretary shall reserve not less than 

24 10 percent of such funds to carry out this section.’’. 


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1 SEC. 403. GAINING EARLY AWARENESS AND READINESS 

2 FOR UNDERGRADUATE PROGRAMS. 

3 (a) EARLY INTERVENTION AND COLLEGE AWARE4 NESS PROGRAM.—Section 404A (20 U.S.C. 1070a–21) is 

5 amended— 

6 (1) in subsection (a)(1), by striking ‘‘academic 

7 support’’ and inserting ‘‘academic support for col8 lege readiness’’; 

9 (2) in subsection (b)— 

10 (A) in paragraph (1), by inserting ‘‘new’’ 

11 before ‘‘awards’’; and 

12 (B) in paragraph (3)— 

13 (i) by amending subparagraph (A) to 

14 read as follows: 

15 ‘‘(A) give priority to eligible entities that 

16 have a prior, demonstrated commitment to 

17 early intervention leading to college access and 

18 readiness through collaboration and replication 

19 of successful strategies; and’’; and 

20 (ii) in subparagraph (B), by striking 

21 ‘‘the Higher Education Opportunity Act’’ 

22 and inserting ‘‘the PROSPER Act’’; and 

23 (C) by adding at the end the following: 

24 ‘‘(4) MULTIPLE AWARD PROHIBITION.—Eligible 

25 entities described in subsection (c)(1) that receive a 

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1 ceive an additional grant under this chapter until 

2 after the date on which the initial grant period ex3 pires.’’; and 

4 (3) in subsection (c)(2)(B), by striking ‘‘institu5 tions or agencies sponsoring programs authorized 

6 under subpart 4,’’. 

7 (b) APPLICATIONS.—Section 404C (20 U.S.C. 

8 1070a–23) is amended— 

9 (1) in subsection (a)— 

10 (A) in paragraph (2)— 

11 (i) in the matter preceding subpara12 graph (A)— 

13 (I) by striking ‘‘, contain or be 

14 accompanied by such information or 

15 assurances,’’; and 

16 (II) by striking ‘‘, at a min17 imum’’; 

18 (ii) by amending subparagraph (B) to 

19 read as follows: 

20 ‘‘(B) describe, in the case of an eligible en21 tity described in section 404A(c)(2) that choos22 es to provide scholarships, or an eligible entity 

23 described in section 404A(c)(1)— 

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1 gram in accordance with the requirements 

2 of section 404E, including any eligibility 

3 criteria other than the criteria described in 

4 section 404E(g), such as— 

5 ‘‘(I) demonstrating financial 

6 need; 

7 ‘‘(II) meeting and maintaining 

8 satisfactory academic progress; and 

9 ‘‘(III) other criteria aligned with 

10 State and local goals to increase post11 secondary readiness, access, and com12 pletion; and 

13 ‘‘(ii) how the eligible entity will meet 

14 the other requirements of section 404E;’’; 

15 (iii) by striking subparagraph (H); 

16 and 

17 (iv) by redesignating subparagraphs 

18 (I) and (J) as subparagraphs (H) and (I), 

19 respectively; and 

20 (2) in subsection (b), by striking paragraph (2) 

21 and inserting the following: 

22 ‘‘(2) SPECIAL RULE.—Notwithstanding the 

23 matching requirement described in paragraph 

24 (1)(A), the Secretary may— 

25 ‘‘(A) at the time of application— 


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1 ‘‘(i) approve a Partnership applicant’s 

2 request for a waiver of up to 75 percent of 

3 the matching requirement for up to two 

4 years if the applicant demonstrates in its 

5 application a significant economic hardship 

6 that stems from a specific, exceptional, or 

7 uncontrollable event, such as a natural dis8 aster, that has a devastating effect on the 

9 members of the Partnership and the com10 munity in which the project would operate; 

11 ‘‘(ii)(I) approve a Partnership appli12 cant’s request to waive up to 50 percent of 

13 the matching requirement for up to two 

14 years if the applicant demonstrates in its 

15 application a pre-existing and an on-going 

16 significant economic hardship that pre17 cludes the applicant from meeting its 

18 matching requirement; and 

19 ‘‘(II) provide tentative approval of an 

20 applicant’s request for a waiver under sub21 clause (I) for all remaining years of the 

22 project period; 

23 ‘‘(iii) approve a Partnership appli24 cant’s request in its application to match 

25 its contributions to its scholarship fund, 


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1 established under section 404E, on the 

2 basis of two non-Federal dollars for every 

3 one dollar of Federal funds provided under 

4 this chapter; or 

5 ‘‘(iv) approve a request by a Partner6 ship applicant that has three or fewer in7 stitutions of higher education as members 

8 to waive up to 70 percent of the matching 

9 requirement if the Partnership applicant 

10 includes— 

11 ‘‘(I) a fiscal agent that is eligible 

12 to receive funds under title V, or part 

13 B of title III, or section 316 or 317, 

14 or a local educational agency; 

15 ‘‘(II) only participating schools 

16 with a 7th grade cohort in which at 

17 least 75 percent of the students are 

18 eligible for free or reduced-price lunch 

19 under the Richard B. Russell National 

20 School Lunch Act; and 

21 ‘‘(III) only local educational 

22 agencies in which at least 50 percent 

23 of the students enrolled are eligible 

24 for free or reduced-price lunch under 


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1 the Richard B. Russell National 

2 School Lunch Act; and 

3 ‘‘(B) after a grant is awarded, approve a 

4 Partnership grantee’s written request for a 

5 waiver of up to—— 

6 ‘‘(i) 50 percent of the matching re7 quirement for up to two years if the grant8 ee demonstrates that— 

9 ‘‘(I) the matching contributions 

10 described for those two years in the 

11 grantee’s approved application are no 

12 longer available; and 

13 ‘‘(II) the grantee has exhausted 

14 all funds and sources of potential con15 tributions for replacing the matching 

16 funds; or 

17 ‘‘(ii) 75 percent of the matching re18 quirement for up to two years if the grant19 ee demonstrates that matching contribu20 tions from the original application are no 

21 longer available due to an uncontrollable 

22 event, such as a natural disaster, that has 

23 a devastating economic effect on members 

24 of the Partnership and the community in 

25 which the project would operate. 


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1 ‘‘(3) ADDITIONAL TERMS.— 

2 ‘‘(A) ON-GOING ECONOMIC HARDSHIP.—In 

3 determining whether a Partnership applicant is 

4 experiencing an on-going economic hardship 

5 that is significant enough to justify a waiver 

6 under subparagraphs (A)(i) and (A)(ii)(I) of 

7 paragraph (2), the Secretary may consider doc8 umentation of the following: 

9 ‘‘(i) Severe distress in the local econ10 omy of the community to be served by the 

11 grant (e.g., there are few employers in the 

12 local area, large employers have left the 

13 local area, or significant reductions in em14 ployment in the local area). 

15 ‘‘(ii) Local unemployment rates that 

16 are higher than the national average. 

17 ‘‘(iii) Low or decreasing revenues for 

18 State and County governments in the area 

19 to be served by the grant. 

20 ‘‘(iv) Significant reductions in the 

21 budgets of institutions of higher education 

22 that are participating in the grant. 

23 ‘‘(v) Other data that reflect a signifi24 cant economic hardship for the geo25 graphical area served by the applicant. 


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1 ‘‘(B) EXHAUSTION OF FUNDS.—In deter2 mining whether a Partnership grantee has ex3 hausted all funds and sources of potential con4 tributions for replacing matching funds under 

5 paragraph (2)(B), the secretary may consider 

6 the grantee’s documentation of key factors that 

7 have had a direct impact on the grantee such 

8 as the following: 

9 ‘‘(i) A reduction of revenues from 

10 State government, County government, or 

11 the local educational agency. 

12 ‘‘(ii) An increase in local unemploy13 ment rates. 

14 ‘‘(iii) Significant reductions in the op15 erating budgets of institutions of higher 

16 education that are participating in the 

17 grant. 

18 ‘‘(iv) A reduction of business activity 

19 in the local area (e.g., large employers have 

20 left the local area). 

21 ‘‘(v) Other data that reflect a signifi22 cant decrease in resources available to the 

23 grantee in the local geographical area 

24 served by the grantee. 


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1 ‘‘(C) RENEWAL OF WAIVER.—A Partner2 ship applicant that receives a tentative approval 

3 of a waiver under subparagraph (A)(ii)(II) of 

4 paragraph (2) for more than two years under 

5 this paragraph must submit to the Secretary 

6 every two years by such time as the Secretary 

7 may direct documentation that demonstrates 

8 that— 

9 ‘‘(i) the significant economic hardship 

10 upon which the waiver was granted still ex11 ists; and 

12 ‘‘(ii) the grantee tried diligently, but 

13 unsuccessfully, to obtain contributions 

14 needed to meet the matching requirement. 

15 ‘‘(D) MULTIPLE WAIVERS.—If a grantee 

16 has received one or more waivers under para17 graph (2), the grantee may request an addi18 tional waiver of the matching requirement 

19 under this subsection not earlier than 60 days 

20 before the expiration of the grantee’s existing 

21 waiver.’’. 

22 (c) ACTIVITIES.—Section 404D (20 U.S.C. 1070a– 

23 24) is amended— 

24 (1) in subsection (a)— 


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1 (A) in paragraph (1), by striking ‘‘finan2 cial aid for’’ and inserting ‘‘financial aid, in3 cluding loans, grants, scholarships, and institu4 tional aid for’’; 

5 (B) in paragraph (2) by striking ‘‘rigorous 

6 and challenging curricula and coursework, in 

7 order to’’ and inserting ‘‘curricula and 

8 coursework designed to’’; 

9 (C) by redesignating paragraphs (3) and 

10 (4) as paragraphs (5) and (6), respectively; 

11 (D) by inserting after paragraph (2) the 

12 following: 

13 ‘‘(3) Providing information to students and 

14 families about the advantages of obtaining a postsec15 ondary education. 

16 ‘‘(4) Providing tutors and mentors, who may in17 clude adults or former participants of a program 

18 under this chapter, for use by eligible students in 

19 need.’’; and 

20 (E) in paragraph (5), as so redesignated, 

21 by striking ‘‘Improving’’ and inserting ‘‘Pro22 viding supportive services to improve’’; and 

23 (2) in subsection (b)— 

24 (A) by striking paragraph (1); 


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1 (B) by redesignating paragraphs (2) 

2 through (15) as paragraphs (1) through (14), 

3 respectively; 

4 (C) in paragraph (3), as so redesignated, 

5 by striking ‘‘rigorous’’ each place it appears; 

6 and 

7 (D) in paragraph (9), as so redesignated— 

8 (i) by redesignating subparagraphs 

9 (E) through (K) as subparagraphs (F) 

10 through (L), respectively; and 

11 (ii) by inserting after subparagraph 

12 (D) the following: 

13 ‘‘(E) providing counseling or referral serv14 ices to address the behavioral, social-emotional, 

15 and mental health needs of at-risk students;’’; 

16 (iii) in subparagraph (I), as so redes17 ignated, by striking ‘‘skills assessments’’ 

18 and inserting ‘‘skills, cognitive, non-cog19 nitive, and credit-by-examination assess20 ments’’; 

21 (iv) in subparagraph (K), as so redes22 ignated, by striking ‘‘and’’ at the end; 

23 (v) in subparagraph (L), as so redes24 ignated, by striking the period at the end 

25 and inserting ‘‘; and’’; and 


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1 (vi) by adding at the end the fol2 lowing: 

3 ‘‘(M) capacity building activities that cre4 ate college-going cultures in participating 

5 schools and local education agencies.’’; 

6 (E) by adding at the end the following: 

7 ‘‘(15) Creating or expanding drop-out recovery 

8 programs that allow individuals who drop out of 

9 school to complete a regular secondary school di10 ploma and begin college-level work.’’; and 

11 (F) in subsection (c)— 

12 (i) in paragraph (3), by inserting 

13 ‘‘and technical assistance’’ after ‘‘adminis14 trative support’’; and 

15 (ii) by striking paragraph (9); and 

16 (3) in subsection (e), by striking ‘‘institutions 

17 and agencies sponsoring programs authorized under 

18 subpart 4,’’. 

19 (d) SCHOLARSHIP REQUIREMENTS.—Section 404E 

20 (20 U.S.C. 1070a–25) is amended— 

21 (1) in subsection (a)(1), by inserting ‘‘described 

22 in section 404C(a)(2)(B)(i)’’ after ‘‘financial assist23 ance program’’; and 

24 (2) in subsection (e)(1), by striking ‘‘an 

25 amount’’ and all that follows through the period at 


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1 the end and inserting the following: ‘‘an estimated 

2 amount that is based on the requirements of the fi3 nancial assistance program of the eligible entity de4 scribed in section 404C(a)(2)(B)(i).’’ 

5 (e) EVALUATION AND REPORT.—Section 404G(b) 

6 (20 U.S.C. 1070a–27(b)) is amended— 

7 (1) in paragraph (1), by striking ‘‘and’’ at the 

8 end; 

9 (2) in paragraph (2), by striking the period at 

10 the end and inserting ‘‘; and’’ 

11 (3) by adding after paragraph (2) the following: 

12 ‘‘(3) include the following metrics: 

13 ‘‘(A) the number of students completing 

14 the Free Application for Federal Student Aid; 

15 ‘‘(B) the enrollment of participating stu16 dents in curricula and coursework designed to 

17 reduce the need for remedial coursework at the 

18 postsecondary level; 

19 ‘‘(C) if applicable, the number of students 

20 receiving a scholarship; 

21 ‘‘(D) the graduation rate of participating 

22 students from high school; 

23 ‘‘(E) the enrollment of participating stu24 dents into postsecondary education; and 


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1 ‘‘(F) such other information as the Sec2 retary may require.’’. 

3 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 404H (20 U.S.C. 1070a–28) is amended by striking 

5 ‘‘$400,000,000 for fiscal year 2009 and such sums as may 

6 be necessary for each of the five succeeding fiscal years’’ 

7 and inserting ‘‘$339,754,000 for fiscal year 2019 and 

8 each of the five succeeding fiscal years’’. 

9 SEC. 404. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAM10 ILIES ARE ENGAGED IN MIGRANT AND SEA11 SONAL FARMWORK. 

12 Section 418A(i) (20 U.S.C. 1070d—2(i)) is amended 

13 by striking ‘‘$75,000,000’’ and all that follows through 

14 the period at the end and inserting ‘‘$44,623,000 for each 

15 of fiscal years 2019 through 2024.’’. 

16 SEC. 405. CHILD CARE ACCESS MEANS PARENTS IN 

17 SCHOOL. 

18 Section 419N (20 U.S.C. 1070e) is amended— 

19 (1) in the heading of paragraph (6) of sub20 section (b), by striking ‘‘CONSTRUCTION’’ and in21 serting ‘‘RULE OF CONSTRUCTION’’; 

22 (2) in subsection (c)— 

23 (A) in paragraph (4), by striking ‘‘as24 sisted’’ and inserting ‘‘funded’’; 

25 (B) in paragraph (5)— 


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1 (i) by striking ‘‘resources, including 

2 technical expertise’’ and inserting ‘‘re3 sources, including non-Federal resources, 

4 technical expertise,’’; and 

5 (ii) by striking ‘‘the use of the’’ and 

6 inserting ‘‘these’’; and 

7 (C) in paragraph (9)— 

8 (i) by inserting ‘‘provisional status,’’ 

9 after ‘‘approval,’’; and 

10 (ii) by striking ‘‘; and’’ and inserting 

11 ‘‘prior to serving children and families; 

12 and’’; 

13 (3) in subsection (d)— 

14 (A) in paragraph (1)— 

15 (i) by striking ‘‘local’’ and inserting 

16 ‘‘non-Federal, local,’’; and 

17 (ii) by striking ‘‘and’’ at the end; 

18 (B) in paragraph (2), by striking the pe19 riod at the end and inserting ‘‘; and’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(3) coordinate with other community programs 

22 where appropriate to improve the quality and limit 

23 cost of the campus-based program.’’; 

24 (4) by amending subsection (e) to read as fol25 lows: 


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1 ‘‘(e) REPORTING REQUIREMENTS; CONTINUING ELI2 GIBILITY.— 

3 ‘‘(1) REPORTING REQUIREMENTS.— 

4 ‘‘(A) REPORTS.—Each institution of high5 er education receiving a grant under this sec6 tion shall report to the Secretary annually. The 

7 Secretary shall annually publish such reports on 

8 a publicly accessible website of the Department 

9 of Education. 

10 ‘‘(B) CONTENTS.—Each report shall in11 clude— 

12 ‘‘(i) data on the population served 

13 under this section, including the total num14 ber of children and families served; 

15 ‘‘(ii) information on sources of cam16 pus and community resources and the 

17 amount of non-Federal funding used to 

18 help low-income students access child care 

19 services on campus; 

20 ‘‘(iii) documentation that the program 

21 meets applicable licensing, certification, ap22 proval, or registration requirements; and 

23 ‘‘(iv) a description of how funding was 

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1 termined by the institution under sub2 section (c). 

3 ‘‘(2) CONTINUING ELIGIBILITY.—The Secretary 

4 shall make continuation awards under this section to 

5 an institution of higher education only if the Sec6 retary determines, on the basis of the reports sub7 mitted under paragraph (1) and the application 

8 from the institution, that the institution is— 

9 ‘‘(A) using funds only for authorized pur10 poses; 

11 ‘‘(B) providing low-income students at the 

12 institution with priority access to affordable, 

13 quality child care services as provided under 

14 this section; and 

15 ‘‘(C) documenting a continued need for 

16 Federal funding under this section, while dem17 onstrating how non-Federal sources will be le18 veraged to support a continuation award.’’; and 

19 (5) in subsection (g), by striking ‘‘such sums as 

20 may be necessary for fiscal year 2009 and each of 

21 the five succeeding fiscal years’’ and inserting 

22 ‘‘$15,134,000 for each of fiscal years 2019 through 

23 2024’’. 


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1 SEC. 406. REPEALS. 

2 (a) ACADEMIC COMPETITIVENESS GRANTS.—Section 

3 401A (20 U.S.C. 1070a–1) is repealed. 

4 (b) FEDERAL SUPPLEMENTAL EDUCATIONAL OP5 PORTUNITY GRANTS.— 

6 (1) REPEAL.—Subpart 3 of part A of title IV 

7 (20 U.S.C. 1070b et seq.) is repealed. 

8 (2) EFFECTIVE DATE.—The repeal made by 

9 paragraph (1) shall take effect on June 30, 2018. 

10 (c) LEVERAGING EDUCATIONAL ASSISTANCE PART11 NERSHIP PROGRAM.—Subpart 4 of part A of title IV (20 

12 U.S.C. 1070c et seq.) is repealed. 

13 (d) ROBERT C. BYRD HONORS SCHOLARSHIP PRO14 GRAM.—Subpart 6 of part A of title IV (20 U.S.C. 1070d– 

15 31 et seq.) is repealed. 

16 SEC. 407. SUNSET OF TEACH GRANTS. 

17 Subpart 9 of part A of title IV (20 U.S.C. 1070g) 

18 is amended— 

19 (1) in section 420L(1) (20 U.S.C. 1070g(1), by 

20 striking ‘‘section 102’’ and inserting ‘‘section 102 

21 (as in effect on the day before the date of enactment 

22 of the PROSPER Act)’’; 

23 (2) in section 420N (20 U.S.C. 1070g–2)— 

24 (A) by amending subparagraph (B) of sub25 section (b)(1) to read as follows: 

26 ‘‘(B) teach— 


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1 ‘‘(i) in a public or other nonprofit pri2 vate elementary school or secondary school, 

3 which, for the purpose of this paragraph 

4 and for that year— 

5 ‘‘(I) has been determined by the 

6 Secretary (pursuant to regulations of 

7 the Secretary and after consultation 

8 with the State educational agency of 

9 the State in which the school is lo10 cated) to be a school in which the 

11 number of children meeting a measure 

12 of poverty under section 1113(a)(5) of 

13 the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 

15 6313(a)(5)), exceeds 30 percent of the 

16 total number of children enrolled in 

17 such school; and 

18 ‘‘(II) is in the school district of a 

19 local educational agency which is eligi20 ble in such year for assistance pursu21 ant to part A of title I of the Elemen22 tary and Secondary Education Act of 

23 1965 (20 U.S.C. 6311 et seq.); or 

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1 ondary schools or locations operated by an 

2 educational service agency that have been 

3 determined by the Secretary (pursuant to 

4 regulations of the Secretary and after con5 sultation with the State educational agency 

6 of the State in which the educational serv7 ice agency operates) to be a school or loca8 tion at which the number of children 

9 taught who meet a measure of poverty 

10 under section 1113(a)(5) of the Elemen11 tary and Secondary Education Act of 1965 

12 (20 U.S.C. 6313(a)(5)), exceeds 30 per13 cent of the total number of children taught 

14 at such school or location;’’; and 

15 (B) in subsection (c), by inserting ‘‘(as in 

16 effect on the day before the date of the enact17 ment of the PROSPER Act)’’ after ‘‘part D of 

18 title IV’’; 

19 (3) in section 420M(a) (20 U.S.C. 1070g–1), 

20 by adding at the end the following: 

21 ‘‘(3) TERMINATION.— 

22 ‘‘(A) TERMINATION OF PROGRAM AUTHOR23 ITY.—No new grants may be made under this 

24 subpart after June 30, 2018. 


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1 ‘‘(B) LIMITATION ON FUNDS.—No funds 

2 are authorized to be appropriated, and no funds 

3 may be obligated or expended under this Act or 

4 any other Act, to make a grant under this sub5 part for which the first disbursement would be 

6 made after June 30, 2018.’’; and 

7 (4) in section 420O (20 U.S.C. 1070g–3)— 

8 (A) by striking ‘‘2008’’ and inserting 

9 ‘‘2008, and ending on June 30, 2018’’; and 

10 (B) by adding at the end the following: 

11 ‘‘No funds shall be available to the Secretary to 

12 carry out this subpart after June 30, 2018.’’. 

13 PART B—FEDERAL FAMILY EDUCATION LOAN 

14 PROGRAM 

15 SEC. 421. FEDERAL DIRECT CONSOLIDATION LOANS. 

16 Section 428C (20 U.S.C. 1078–3) is amended— 

17 (1) in subsection (a)(4)(B), by inserting before 

18 the semicolon at the end ‘‘, as in effect on the day 

19 before the date of enactment of the PROSPER Act 

20 and pursuant to section 461(a) of such Act’’; and 

21 (2) in subsection (b)(1)(F)(ii)— 

22 (A) in the matter preceding subclause (I), 

23 by inserting ‘‘, as in effect on the day before 

24 the date of enactment of the PROSPER Act 


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1 and pursuant to section 461(a) of such Act’’ 

2 after ‘‘part E’’; 

3 (B) in subclause (I), in the matter pre4 ceding item (aa), by inserting ‘‘, as so in ef5 fect,’’ after ‘‘part E’’; 

6 (C) in subclause (I)(bb), by inserting ‘‘, as 

7 so in effect’’ after ‘‘section 464(c)(1)(A)’’; 

8 (D) in subclause (II), by inserting ‘‘, as so 

9 in effect’’ after ‘‘section 465(a)’’; and 

10 (E) in subclause (III)— 

11 (i) by inserting ‘‘, as so in effect’’ 

12 after ‘‘section 465’’; and 

13 (ii) by inserting ‘‘, as so in effect’’ 

14 after ‘‘465(a)’’. 

15 SEC. 422. LOAN REHABILITATION. 

16 Section 428F(a)(5) (20 U.S.C. 1078–6) is amended 

17 by striking ‘‘one time’’ and inserting ‘‘two times’’. 

18 SEC. 423. LOAN FORGIVENESS FOR TEACHERS. 

19 Section 428J(b)(1)(A) (20 U.S.C. 1087–10(b)(1)(A)) 

20 is amended by striking ‘‘that qualifies under section 

21 465(a)(2)(A) for loan cancellation for Perkins loan recipi22 ents who teach in such schools or locations’’ and inserting 

23 ‘‘described in section 420N(b)(1)(B)’’. 


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1 SEC. 424. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 

2 NATIONAL NEED. 

3 Section 428K (20 U.S.C. 1078–11) is amended— 

4 (1) in subsection (b)— 

5 (A) in paragraph (4)(B), by striking ‘‘that 

6 qualifies under section 465(a)(2)(A) for loan 

7 cancellation for Perkins loan recipients who 

8 teach in such a school’’ and inserting ‘‘de9 scribed in section 420N(b)(1)(B)’’; 

10 (B) in paragraph (5)(B)(ii), by striking 

11 ‘‘that qualifies under section 465(a)(2)(A) for 

12 loan cancellation for Perkins loan recipients 

13 who teach in such a school’’ and inserting ‘‘de14 scribed in section 420N(b)(1)(B)’’; 

15 (C) in paragraph (7)(A), by striking ‘‘that 

16 qualifies under section 465(a)(2)(A) for loan 

17 cancellation for Perkins loan recipients who 

18 teach in such a school’’ and inserting ‘‘de19 scribed in section 420N(b)(1)(B)’’; 

20 (D) in paragraph (8), by striking ‘‘that 

21 qualifies under section 465(a)(2)(A) for loan 

22 cancellation for Perkins loan recipients who 

23 teach in such a school’’ and inserting ‘‘de24 scribed in section 420N(b)(1)(B)’’; and 

25 (E) in paragraph (16), by striking ‘‘that 

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1 cellation for Perkins loan recipients who teach 

2 in such a school’’ and inserting ‘‘described in 

3 section 420N(b)(1)(B)’’; and 

4 (2) in subsection (g)(6)(B), by striking ‘‘that 

5 qualifies under section 465(a)(2)(A) for loan can6 cellation for Perkins loan recipients who teach in 

7 such a school’’ and inserting ‘‘described in section 

8 420N(b)(1)(B)’’. 

9 SEC. 425. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 

10 ATTORNEYS. 

11 Section 428L(b)(2)(A) (20 U.S.C. 1087– 

12 12(b)(2)(A)) is amended— 

13 (1) in clause (i), by inserting before the semi14 colon at the end ‘‘, as in effect on the day before the 

15 date of enactment of the PROSPER Act and pursu16 ant to section 461(a) of such Act’’; and 

17 (2) in clause (ii)(III), by inserting ‘‘, as in ef18 fect on the day before the date of enactment of the 

19 PROSPER Act and pursuant to section 461(a) of 

20 such Act’’ after ‘‘part E’’; 

21 SEC. 426. SUNSET OF COHORT DEFAULT RATE AND OTHER 

22 CONFORMING CHANGES. 

23 (a) REQUIREMENTS FOR THE SECRETARY.—Section 

24 430(e) (20 U.S.C. 1080(e)) is amended by adding at the 

25 end the following: 


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1 ‘‘(4) SUNSET.—The Secretary shall not be sub2 ject to the requirements of this subsection after the 

3 transition period described in section 481B(e)(3).’’. 

4 (b) ELIGIBLE INSTITUTION DEFINED.—Section 435 

5 (20 U.S.C. 1085) is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (1), by striking ‘‘section 

8 102’’ and inserting ‘‘section 101 and 102’’; and 

9 (B) by adding at the end the following: 

10 ‘‘(9) SUNSET.—No institution shall be subject 

11 to paragraph (2) after the transition period de12 scribed in section 481B(e)(3).’’; 

13 (2) in subsection (m), by adding at the end the 

14 following: 

15 ‘‘(5) TRANSITION PERIOD; SUNSET.— 

16 ‘‘(A) TRANSITION PERIOD.—During the 

17 transition period, the cohort default rate for an 

18 institution shall be calculated in the manner de19 scribed in section 481B(e)(1). 

20 ‘‘(B) SUNSET.—The Secretary shall not be 

21 subject, and no institution shall be subject, to 

22 the requirements of this subsection after the 

23 transition period. 


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1 ‘‘(C) DEFINITION.—In this paragraph, the 

2 term ‘transition period’ has the meaning given 

3 the term in section 481B(e)(3).’’; and 

4 (3) in subsection (o)(1), by inserting ‘‘, as in ef5 fect on the day before the date of enactment of the 

6 PROSPER Act and pursuant to section 461(a) of 

7 such Act’’ after ‘‘part E’’. 

8 SEC. 427. 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

20 CLOSED SCHOOL DISCHARGE.— 

21 ‘‘(A) IN GENERAL.—In order to qualify for 

22 the discharge of a loan under this subsection 

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1 mit to the Secretary a written request and 

2 sworn statement— 

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 

9 the student on whose behalf a parent bor10 rowed) 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 ex2 ceptional circumstances described 

3 in subparagraph (B), not more 

4 than the period by which such 

5 120-day period is extended under 

6 such subparagraph; 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 

15 the student) has made a claim with 

16 respect to the institutions’s closing 

17 with any third party, such as the 

18 holder of a performance bond or a tui19 tion recovery program, and, if so, the 

20 amount of any payment received by 

21 the borrower (or the student) or cred22 ited to the borrower’s loan obligation; 

23 and 

24 ‘‘(III) that the borrower (or the 

25 student)— 


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1 ‘‘(aa) agrees to provide to 

2 the Secretary or the holder of the 

3 loan upon request other docu4 mentation reasonably available to 

5 the borrower that demonstrates 

6 that the borrower meets the 

7 qualifications for discharge under 

8 this subsection; and 

9 ‘‘(bb) agrees to cooperate 

10 with the Secretary in enforce11 ment actions in accordance with 

12 subparagraph (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 

19 may extend the 120-day period described 

20 in subparagraph (A)(iii)(I)(bb)(BB) if the 

21 Secretary 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 institu4 tions’ discontinuation of the majority of its 

5 academic programs, action by the State to 

6 revoke the institution’s license to operate 

7 or award academic credentials in the State, 

8 or a finding by a State or Federal Govern9 ment agency that the institution violated 

10 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 pro24 vided in litigation to reimburse witnesses, 

25 the borrower 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 rep11 resentations. 

12 ‘‘(ii) DENIAL OF REQUEST FOR DIS13 CHARGE.—The Secretary shall deny the re14 quest for such a discharge or revoke the 

15 discharge of a borrower who— 

16 ‘‘(I) fails to provide the testi17 mony, documents, or a sworn state18 ment required 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 

7 have assigned to and relinquished in favor 

8 of the Secretary any right to a loan refund 

9 for such loan (up to the amount dis10 charged) that the borrower (or student) 

11 may have by contract or applicable law 

12 with respect to the loan or the enrollment 

13 agreement for the program for which the 

14 loan was received, against the institution, 

15 its principals, its affiliates and their suc16 cessors, its sureties, and any private fund, 

17 including the portion of a public fund that 

18 represents funds received from a private 

19 party. 

20 ‘‘(ii) APPLICATION.—The provisions 

21 of this subsection apply notwithstanding 

22 any provision of State law that would oth23 erwise restrict transfer of such rights by 

24 the borrower (or student), limit, or prevent 

25 a transferee from exercising such rights, or 


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1 establish procedures or a scheme of dis2 tribution that would prejudice the Sec3 retary’s ability to recover on such rights. 

4 ‘‘(iii) RULE OF CONSTRUCTION.— 

5 Nothing in this subsection shall limit or 

6 foreclose the borrower’s (or student’s) 

7 right to pursue legal and equitable relief 

8 regarding disputes arising from matters 

9 unrelated to the discharged loan. 

10 ‘‘(E) DISCHARGE PROCEDURES.— 

11 ‘‘(i) IN GENERAL.—After confirming 

12 the date of an institution’s closure, the 

13 Secretary shall identify any borrower (or 

14 student on whose behalf a parent bor15 rowed) who appears to have been enrolled 

16 at the institution on the closure date of the 

17 institution or to have withdrawn not more 

18 than 120 days prior to the closure date (or 

19 in the case of exceptional circumstances 

20 described in subparagraph (B), not more 

21 than the period by which such 120-day pe22 riod is extended under such subparagraph. 

23 In the case of a loan made, insured, or 

24 guaranteed under this part, a guaranty 

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1 diately whenever it becomes aware of reli2 able information indicating an institution 

3 may have closed. 

4 ‘‘(ii) BORROWER ADDRESS.— 

5 ‘‘(I) KNOWN.—If the borrower’s 

6 current address is known, the Sec7 retary shall mail the borrower a dis8 charge application and an explanation 

9 of the qualifications and procedures 

10 for obtaining a discharge. The Sec11 retary or the guaranty agency shall 

12 promptly suspend any efforts to col13 lect from the borrower on any affected 

14 loan. The Secretary may continue to 

15 receive borrower payments of the loan 

16 for which the discharge application 

17 has been filed. 

18 ‘‘(II) UNKNOWN.—If the bor19 rower’s current address is unknown, 

20 the Secretary shall attempt to locate 

21 the borrower and determine the bor22 rower’s potential eligibility for a dis23 charge described in subparagraph (A) 

24 by consulting with representatives of 

25 the closed institution, the institution’s 


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1 licensing agency, the institution’s ac2 crediting agency, and other appro3 priate parties. If the Secretary learns 

4 the new address of a borrower, the 

5 Secretary shall mail to the borrower a 

6 discharge application and explanation, 

7 and shall suspend collection on the 

8 loan, as described in subclause (I). 

9 ‘‘(iii) SWORN STATEMENT.—If a bor10 rower fails to submit the written request 

11 and sworn statement described subpara12 graph (A) not later than 60 days after 

13 date on which the Secretary mails the dis14 charge application under clause (ii), the 

15 Secretary— 

16 ‘‘(I) shall resume collection on 

17 the loan and grant forbearance of 

18 principal and interest for the period in 

19 which collection activity was sus20 pended; and 

21 ‘‘(II) may capitalize any interest 

22 accrued and not paid during such pe23 riod. 

24 ‘‘(iv) NOTIFICATION.— 


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1 ‘‘(I) QUALIFICATIONS MET.—If 

2 the Secretary determines that a bor3 rower who requests a discharge de4 scribed in subparagraph (A) meets the 

5 qualifications for such a discharge, 

6 the Secretary shall— 

7 ‘‘(aa) notify the borrower in 

8 writing of that determination; 

9 and 

10 ‘‘(bb) not regard a borrower 

11 who has defaulted on a loan that 

12 has been so discharged as in de13 fault on the loan after such dis14 charge, and such a borrower shall 

15 be eligible to receive assistance 

16 under this title. 

17 ‘‘(II) QUALIFICATIONS NOT

18 MET.—If the Secretary determines 

19 that a borrower who requests a dis20 charge described in subparagraph (A) 

21 does not meet the qualifications for 

22 such a discharge, the Secretary or 

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1 rower in writing of that determination 

2 and the reasons for the determination. 

3 ‘‘(7) BORROWER QUALIFICATIONS FOR A FALSE

4 CERTIFICATION DISCHARGE.— 

5 ‘‘(A) APPLICATION.— 

6 ‘‘(i) IN GENERAL.—In order to qualify 

7 for false certification discharge under this 

8 subsection, the borrower shall submit to 

9 the Secretary, on a form approved by the 

10 Secretary, an application for discharge 

11 that— 

12 ‘‘(I) does not need not be nota13 rized, but shall be made by the bor14 rower under penalty of perjury; and 

15 ‘‘(II) demonstrates to the satis16 faction of the Secretary that the re17 quirements in subparagraphs (B) 

18 through (G) have been met. 

19 ‘‘(ii) NOTIFICATION.—If the Secretary 

20 determines the application does not meet 

21 the requirements of clause (i), the Sec22 retary shall notify the applicant and ex23 plain why the application does not meet 

24 the requirements. 


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1 ‘‘(B) HIGH SCHOOL DIPLOMA OR EQUIVA2 LENT.—In the case of a borrower requesting a 

3 false certification discharge based on not having 

4 had a high school diploma and not having met 

5 the alternative to graduation from high school 

6 eligibility requirements under section 484(d) 

7 applicable at the time the loan was originated, 

8 and the institution or a third party to which the 

9 institution referred the borrower falsified the 

10 student’s high school diploma, the borrower 

11 shall state in the application that the borrower 

12 (or the student on whose behalf a parent bor13 rowed)— 

14 ‘‘(i) reported not having a valid high 

15 school diploma or its equivalent at the time 

16 the loan was certified; and 

17 ‘‘(ii) did not satisfy the alternative to 

18 graduation from high school statutory or 

19 regulatory eligibility requirements identi20 fied on the application form and applicable 

21 at the time the institution certified the 

22 loan. 

23 ‘‘(C) DISQUALIFYING CONDITION.—In the 

24 case of a borrower requesting a false certifi25 cation discharge based on a condition that 


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1 would disqualify the borrower from employment 

2 in the occupation that the program for which 

3 the borrower received the loan was intended, 

4 the borrower shall state in the application that 

5 the borrower (or student on whose behalf the 

6 parent borrowed) did not meet State require7 ments for employment (in the student’s State of 

8 residence) in the occupation that the program 

9 for which the borrower received the loan was in10 tended because of a physical or mental condi11 tion, age, criminal record, or other reason ac12 cepted by the Secretary. 

13 ‘‘(D) UNAUTHORIZED LOAN.—In the case 

14 of a borrower requesting a discharge under this 

15 subsection because the institution signed the 

16 borrower’s name on the loan application or 

17 promissory note without the borrower’s author18 ization, the borrower shall— 

19 ‘‘(i) state that the borrower did not 

20 sign the document in question or authorize 

21 the institution to do so; and 

22 ‘‘(ii) provide 5 different specimens of 

23 the borrower’s signature, two of which 

24 must be within one year before or after the 

25 date of the contested signature. 


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1 ‘‘(E) UNAUTHORIZED PAYMENT.—In the 

2 case of a borrower requesting a false certifi3 cation discharge because the institution, with4 out the borrower’s authorization, endorsed the 

5 borrower’s loan check or signed the borrower’s 

6 authorization for electronic funds transfer, the 

7 borrower shall— 

8 ‘‘(i) state that the borrower did not 

9 endorse the loan check or sign the author10 ization for electronic funds transfer or au11 thorize the institution to do so; 

12 ‘‘(ii) provide 5 different specimens of 

13 the borrower’s signature, two of which 

14 must be within one year before or after the 

15 date of the contested signature; and 

16 ‘‘(iii) state that the proceeds of the 

17 contested disbursement were not delivered 

18 to the borrower or applied to charges owed 

19 by the borrower to the institution. 

20 ‘‘(F) IDENTITY THEFT.— 

21 ‘‘(i) IN GENERAL.—In the case of an 

22 individual whose eligibility to borrow was 

23 falsely certified because the individual was 

24 a victim of the crime of identity theft and 


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1 is requesting a discharge, the individual 

2 shall— 

3 ‘‘(I) certify that the individual 

4 did not sign the promissory note, or 

5 that any other means of identification 

6 used to obtain the loan was used with7 out the authorization of the individual 

8 claiming relief; 

9 ‘‘(II) certify that the individual 

10 did not receive or benefit from the 

11 proceeds of the loan with knowledge 

12 that the loan had been made without 

13 the authorization of the individual; 

14 ‘‘(III) provide a copy of a local, 

15 State, or Federal court verdict or 

16 judgment that conclusively determines 

17 that the individual who is named as 

18 the borrower of the loan was the vic19 tim of a crime of identity theft; and 

20 ‘‘(IV) if the judicial determina21 tion of the crime does not expressly 

22 state that the loan was obtained as a 

23 result of the crime of identity theft, 

24 provide— 


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1 ‘‘(aa) authentic specimens of 

2 the signature of the individual, as 

3 described in subparagraph 

4 (D)(ii), or of other means of 

5 identification of the individual, as 

6 applicable, corresponding to the 

7 means of identification falsely 

8 used to obtain the loan; and 

9 ‘‘(bb) statement of facts 

10 that demonstrate, to the satisfac11 tion of the Secretary, that eligi12 bility for the loan in question was 

13 falsely certified as a result of the 

14 crime of identity theft committed 

15 against that individual. 

16 ‘‘(ii) DEFINITIONS.—For purposes of 

17 this subparagraph: 

18 ‘‘(I) IDENTITY THEFT.—The 

19 term ‘identity theft’ means the unau20 thorized use of the identifying infor21 mation of another individual that is 

22 punishable under section 1028, 

23 1028A, 1029, or 1030 of title 18, 

24 United States Code, or substantially 

25 comparable State or local law. 


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1 ‘‘(II) IDENTIFYING INFORMA2 TION.—The term ‘identifying informa3 tion’ includes— 

4 ‘‘(aa) name, Social Security 

5 number, date of birth, official 

6 State or government issued driv7 er’s license or identification num8 ber, alien registration number, 

9 government passport number, 

10 and employer or taxpayer identi11 fication number; 

12 ‘‘(bb) unique biometric data, 

13 such as fingerprints, voiceprint, 

14 retina or iris image, or unique 

15 physical representation; 

16 ‘‘(cc) unique electronic iden17 tification number, address, or 

18 routing code; or 

19 ‘‘(dd) telecommunication 

20 identifying information or access 

21 device (as defined in 18 U.S.C. 

22 1029(e)) borrower qualifications 

23 for a false certification discharge 

24 ‘‘(G) CLAIM TO THIRD PARTY.—The bor25 rower shall state whether the borrower has 


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1 made a claim with respect to the institutions’s 

2 false certification or unauthorized payment with 

3 any third party, such as the holder of a per4 formance bond or a tuition recovery program, 

5 and, if so, the amount of any payment received 

6 by the borrower or credited to the borrower’s 

7 loan obligation. 

8 ‘‘(H) COOPERATION WITH THE SEC9 RETARY.—The borrower shall state that the 

10 borrower— 

11 ‘‘(i) agrees to provide to the Secretary 

12 upon request other documentation reason13 ably available to the borrower that dem14 onstrates that the borrower meets the 

15 qualifications for discharge under this sub16 section; and 

17 ‘‘(ii) agrees to cooperate with the Sec18 retary in enforcement actions and to trans19 fer any right to recovery against a third 

20 party to the Secretary. 

21 ‘‘(8) BORROWER QUALIFICATIONS FOR AN UN22 PAID REFUND DISCHARGE.—To receive an unpaid 

23 refund discharge of a portion of a loan under this 

24 subsection, a borrower shall submit to the holder or 

25 guaranty agency a written application— 


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1 ‘‘(A) that requests the information re2 quired to calculate the amount of the discharge; 

3 ‘‘(B) that the borrower signs for the pur4 pose of swearing to the accuracy of the infor5 mation; 

6 ‘‘(C) that is made by the borrower under 

7 penalty of perjury, and that may or may not be 

8 notarized; and 

9 ‘‘(D) under which the borrower states— 

10 ‘‘(i) that the borrower— 

11 ‘‘(I) received, on or after January 

12 1, 1986, the proceeds of a loan, in 

13 whole or in part, made, insured, or 

14 guaranteed under this title to attend 

15 an institution of higher education; 

16 ‘‘(II) did not attend, withdrew, or 

17 was terminated from the institution 

18 within a timeframe that entitled the 

19 borrower to a refund; and 

20 ‘‘(III) did not receive the benefit 

21 of a refund to which the borrower was 

22 entitled either from the institution or 

23 from a third party, such as the holder 

24 of a performance bond or a tuition re25 covery program; 


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1 ‘‘(ii) whether the borrower has any 

2 other application for discharge pending for 

3 this loan; and 

4 ‘‘(iii) that the borrower— 

5 ‘‘(I) agrees to provide to the Sec6 retary upon request other documenta7 tion reasonably available to the bor8 rower that demonstrates that the bor9 rower meets the qualifications for dis10 charge under this subsection; and 

11 ‘‘(II) agrees to cooperate with the 

12 Secretary in enforcement actions and 

13 to transfer any right to recovery 

14 against a third party to the Sec15 retary.’’. 

16 PART C—FEDERAL WORK-STUDY PROGRAMS 

17 SEC. 441. PURPOSE; AUTHORIZATION OF APPROPRIATIONS. 

18 Section 441 (20 U.S.C. 1087–51) is amended— 

19 (1) in subsection (a)— 

20 (A) by striking ‘‘part-time’’ and inserting 

21 ‘‘paid’’; 

22 (B) by striking ‘‘, graduate, or profes23 sional’’; and 

24 (C) by striking ‘‘community service’’ and 

25 inserting ‘‘work-based learning’’; 


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1 (2) in subsection (b), by striking ‘‘part, such 

2 sums as may be necessary for fiscal year 2009 and 

3 each of the five succeeding fiscal years.’’ and insert4 ing ‘‘part, $1,722,858,000 for fiscal year 2019 and 

5 each of the 5 succeeding fiscal years.’’; and 

6 (3) by amending subsection (c) to read as fol7 lows: 

8 ‘‘(c) WORK-BASED LEARNING.—For purposes of this 

9 part, the term ‘work-based learning’ means paid inter10 actions with industry or community professionals in real 

11 workplace settings that foster in-depth, first-hand engage12 ment with the tasks required of a given career field, that 

13 are aligned to a student’s field of study.’’. 

14 SEC. 442. ALLOCATION FORMULA. 

15 Section 442 (20 U.S.C. 1087–52) is amended to read 

16 as follows: 

17 ‘‘SEC. 442. ALLOCATION OF FUNDS. 

18 ‘‘(a) RESERVATIONS.— 

19 ‘‘(1) RESERVATION FOR IMPROVED INSTITU20 TIONS.— 

21 ‘‘(A) AMOUNT OF RESERVATION FOR IM22 PROVED INSTITUTIONS.—For a fiscal year in 

23 which the amount appropriated under section 

24 441(b) exceeds $700,000,000, the Secretary 

25 shall— 


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1 ‘‘(i) reserve the lesser of— 

2 ‘‘(I) an amount equal to 20 per3 cent of the amount by which the 

4 amount appropriated under section 

5 441(b) exceeds $700,000,000; or 

6 ‘‘(II) $150,000,000; and 

7 ‘‘(ii) allocate the amount reserved 

8 under clause (i) to each improved institu9 tion in an amount— 

10 ‘‘(I) that bears the same propor11 tion to the amount reserved under 

12 clause (i) as the total amount of all 

13 Federal Pell Grant funds awarded at 

14 the improved institution for the sec15 ond preceding fiscal year bears to the 

16 total amount of Federal Pell Grant 

17 funds awarded at improved institu18 tions participating under this part for 

19 the second preceding fiscal year; and 

20 ‘‘(II) is not— 

21 ‘‘(aa) less than $10,000; or 

22 ‘‘(bb) greater than 

23 $1,500,000. 

24 ‘‘(B) IMPROVED INSTITUTION DE25 SCRIBED.—For purposes of this paragraph, an 


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1 improved institution is an institution that, on 

2 the date the Secretary makes an allocation 

3 under subparagraph (A)(ii) is, with respect to— 

4 ‘‘(i) the completion rate or graduation 

5 rate of Federal Pell Grant recipients at the 

6 institution, in the top 10 percent of— 

7 ‘‘(I) if the institution is an insti8 tution described in any of clauses (iv) 

9 through (ix) of section 132(d)(1)(B), 

10 all such institutions participating 

11 under this part for the preceding fis12 cal year; or 

13 ‘‘(II) if the institution is an insti14 tution described in any of clauses (i) 

15 through (iii) of section 132(d)(1)(B), 

16 all such institutions participating 

17 under this part for the preceding fis18 cal year; or 

19 ‘‘(ii) the improvement of the comple20 tion rate or graduation rate between the 

21 preceding fiscal year and such date, in the 

22 top 10 percent of the institutions described 

23 in clause (i). 

24 ‘‘(C) COMPLETION RATE OR GRADUATION

25 RATE.—For purposes of determining the comVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 pletion rate or graduation rate under this sec2 tion, a Federal Pell Grant recipient shall be 

3 counted as a completor or graduate if, within 

4 the normal time for completion of or graduation 

5 from the program, the student has completed or 

6 graduated from the program, or enrolled in any 

7 program of an institution participating in any 

8 program under this title for which the prior 

9 program provides substantial preparation. 

10 ‘‘(D) REALLOCATION OF RETURNED

11 AMOUNT.—If an institution returns to the Sec12 retary any portion of the sums allocated to such 

13 institution under this paragraph for any fiscal 

14 year, the Secretary shall reallot such excess to 

15 improved institutions on the same basis as 

16 under subparagraph (A)(ii)(I). 

17 ‘‘(2) RESERVATION FOR WORK COLLEGES.— 

18 From the amounts appropriated under section 

19 441(b), the Secretary shall reserve to carry out sec20 tion 448 such amounts as may be necessary for fis21 cal year 2019 and each of the 5 succeeding fiscal 

22 years. 

23 ‘‘(b) ALLOCATION FORMULA FOR FISCAL YEARS

24 2019 THROUGH 2023.— 


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1 ‘‘(1) IN GENERAL.—From the amount appro2 priated under section 441(b) for a fiscal year and re3 maining after the Secretary reserves funds under 

4 subsection (a), the Secretary shall allocate to each 

5 institution— 

6 ‘‘(A) for fiscal year 2019, an amount equal 

7 to the greater of— 

8 ‘‘(i) 90 percent of the amount the in9 stitution received under this subsection 

10 and subsection (a) for fiscal year 2018, as 

11 such subsections were in effect with re12 spect to such fiscal year (in this subpara13 graph referred to as the ‘2018 amount for 

14 the institution’); or 

15 ‘‘(ii) the fair share amount for the in16 stitution determined under subsection (d); 

17 ‘‘(B) for fiscal year 2020, an amount equal 

18 to the greater of— 

19 ‘‘(i) 80 percent of the 2018 amount 

20 for the institution; or 

21 ‘‘(ii) the fair share amount for the in22 stitution determined under subsection (d); 

23 ‘‘(C) for fiscal year 2021, an amount equal 

24 to the greater of— 


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1 ‘‘(i) 60 percent of the 2018 amount 

2 for the institution; or 

3 ‘‘(ii) the fair share amount for the in4 stitution determined under subsection (d); 

5 ‘‘(D) for fiscal year 2022, an amount equal 

6 to the greater of— 

7 ‘‘(i) 40 percent of the 2018 amount 

8 for the institution; or 

9 ‘‘(ii) the fair share amount for the in10 stitution determined under subsection (d); 

11 and 

12 ‘‘(E) for fiscal year 2023, an amount equal 

13 to the greater of— 

14 ‘‘(i) 20 percent of the 2018 amount 

15 for the institution; or 

16 ‘‘(ii) the fair share amount for the in17 stitution determined under subsection (d). 

18 ‘‘(2) RATABLE REDUCTION.— 

19 ‘‘(A) IN GENERAL.—If the amount appro20 priated under section 441(b) for a fiscal year 

21 and remaining after the Secretary reserves 

22 funds under subsection (a) is less than the 

23 amount required to be allocated to the institu24 tions under this subsection, then the amount of 


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1 the allocation to each institution shall be rat2 ably reduced. 

3 ‘‘(B) ADDITIONAL APPROPRIATIONS.—If 

4 the amounts allocated to each institution are 

5 ratably reduced under subparagraph (A) for a 

6 fiscal year and additional amounts are appro7 priated for such fiscal year, the amount allo8 cated to each institution from the additional 

9 amounts shall be increased on the same basis as 

10 the amounts under subparagraph (A) were re11 duced (until each institution receives the 

12 amount required to be allocated under this sub13 section). 

14 ‘‘(c) ALLOCATION FORMULA FOR FISCAL YEAR 2024 

15 AND EACH SUCCEEDING FISCAL YEAR.—From the 

16 amount appropriated under section 441(b) for fiscal year 

17 2024 and each succeeding fiscal year and remaining after 

18 the Secretary reserves funds under subsection (a), the Sec19 retary shall allocate to each institution the fair share 

20 amount for the institution determined under subsection 

21 (d). 

22 ‘‘(d) DETERMINATION OF FAIR SHARE AMOUNT.— 

23 ‘‘(1) IN GENERAL.—The fair share amount for 

24 an institution for a fiscal year shall be equal to the 

25 sum of the following: 


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1 ‘‘(A) An amount equal to 50 percent of the 

2 amount that bears the same proportion to the 

3 available appropriated amount for such fiscal 

4 year as the total amount of Federal Pell Grant 

5 funds disbursed at the institution for the pre6 ceding fiscal year bears to the total amount of 

7 Federal Pell Grant funds awarded at all institu8 tions participating under this part for the pre9 ceding fiscal year. 

10 ‘‘(B) An amount equal to 50 percent of the 

11 amount that bears the same proportion to the 

12 available appropriated amount for such fiscal 

13 year as the total amount of the undergraduate 

14 student need at the institution for the preceding 

15 fiscal year bears to the total amount of under16 graduate student need at all institutions partici17 pating under this part for the preceding fiscal 

18 year. 

19 ‘‘(2) DEFINITIONS.—In this subsection: 

20 ‘‘(A) AVAILABLE APPROPRIATED

21 AMOUNT.—The term ‘available appropriated 

22 amount’ means— 

23 ‘‘(i) the amount appropriated under 

24 section 441(b) for a fiscal year, minus 


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1 ‘‘(ii) the amounts reserved under sub2 section (a) for such fiscal year. 

3 ‘‘(B) AVERAGE COST OF ATTENDANCE.— 

4 The term ‘average cost of attendance’ means, 

5 with respect to an institution, the average of 

6 the attendance costs for a fiscal year for stu7 dents which shall include— 

8 ‘‘(i) tuition and fees, computed on the 

9 basis of information reported by the insti10 tution to the Secretary, which shall in11 clude— 

12 ‘‘(I) total revenue received by the 

13 institution from undergraduate tuition 

14 and fees for the second year preceding 

15 the year for which it is applying for 

16 an allocation; and 

17 ‘‘(II) the institution’s enrollment 

18 for such second preceding year; 

19 ‘‘(ii) standard living expenses equal to 

20 150 percent of the difference between the 

21 income protection allowance for a family of 

22 five with one in college and the income 

23 protection allowance for a family of six 

24 with one in college for a single independent 

25 student; and 


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1 ‘‘(iii) books and supplies, in an 

2 amount not exceeding $800. 

3 ‘‘(C) UNDERGRADUATE STUDENT NEED.— 

4 The term ‘undergraduate student need’ means, 

5 with respect to an undergraduate student for a 

6 fiscal year, the lesser of the following: 

7 ‘‘(i) The total of the amount equal to 

8 (except the amount computed by this 

9 clause shall not be less than zero)— 

10 ‘‘(I) the average cost of attend11 ance for the fiscal year, minus 

12 ‘‘(II) the total amount of each 

13 such undergraduate student’s ex14 pected family contribution (computed 

15 in accordance with part F of this 

16 title) for the preceding fiscal year. 

17 ‘‘(ii) $12,500. 

18 ‘‘(e) RETURN OF SURPLUS ALLOCATED FUNDS.— 

19 ‘‘(1) AMOUNT RETURNED.—If an institution re20 turns more than 10 percent of its allocation under 

21 subsection (d), the institution’s allocation for the 

22 next fiscal year shall be reduced by the amount re23 turned. 

24 ‘‘(2) WAIVER.—The Secretary may waive this 

25 paragraph for a specific institution if the Secretary 


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1 finds that enforcing this paragraph would be con2 trary to the interest of the program. 

3 ‘‘(f) FILING DEADLINES.—The Secretary shall, from 

4 time to time, set dates before which institutions must file 

5 applications for allocations under this part.’’. 

6 SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS. 

7 Section 443 (20 U.S.C. 1087–53) is amended— 

8 (1) in subsection (b)— 

9 (A) in paragraph (1), in the matter pre10 ceding subparagraph (A), by striking ‘‘part11 time’’; 

12 (B) in paragraph (2), by striking ‘‘except 

13 that—’’ and all that follows through ‘‘an insti14 tution may use a portion’’ and inserting ‘‘except 

15 that an institution may use a portion’’; 

16 (C) in paragraph (3), by inserting ‘‘under17 graduate’’ after ‘‘only’’; 

18 (D) in paragraph (4), by striking ‘‘300’’ 

19 and inserting ‘‘500’’; 

20 (E) in paragraph (5)— 

21 (i) by striking ‘‘shall not exceed 75 

22 percent’’ and inserting ‘‘shall not exceed 

23 75 percent in the first year after the date 

24 of the enactment of PROSPER Act, 65 

25 percent in the first succeeding fiscal year, 


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1 60 percent in the second succeeding fiscal 

2 year, 55 percent in the third succeeding 

3 fiscal year, and 50 percent each succeeding 

4 fiscal year’’; 

5 (ii) by striking subparagraph (A); 

6 (iii) in subparagraph (B)— 

7 (I) by striking ‘‘75’’ and insert8 ing ‘‘50’’; and 

9 (II) by striking the semicolon 

10 and inserting ‘‘; and’’; 

11 (iv) by redesignating subparagraph 

12 (B) as subparagraph (A); and 

13 (v) by adding at the end the following: 

14 ‘‘(B) the Federal share may equal 100 per15 cent with respect to funds received under sec16 tion 442(a)(1)(A);’’; 

17 (F) in paragraph (8)— 

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

19 ‘‘vocational’’ and inserting ‘‘career’’; and 

20 (ii) in subparagraph (B), by striking 

21 ‘‘community service’’ and inserting ‘‘work22 based learning’’; 

23 (G) in paragraph (10), by striking ‘‘; and’’ 

24 and inserting a semicolon; 


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1 (H) in paragraph (11), by striking the pe2 riod at the end and inserting a semicolon; and 

3 (I) by adding at the end the following: 

4 ‘‘(12) provide assurances that the institution 

5 will collect data from students and employers such 

6 that the employment made available from funds 

7 under this part will, to the maximum extent prac8 ticable, complement and reinforce the educational 

9 goals or career goals of each student receiving as10 sistance under this part; and 

11 ‘‘(13) provide assurances that if the institution 

12 receives funds under section 442(a)(1)(A), such in13 stitution shall— 

14 ‘‘(A) use such funds to compensate stu15 dents participating in the work-study program; 

16 and 

17 ‘‘(B) prioritize the awarding of such funds 

18 to students— 

19 ‘‘(i) who demonstrate exceptional 

20 need; or 

21 ‘‘(ii) who are employed in work-based 

22 learning opportunities through the work23 study program.’’; 

24 (2) in subsection (c)— 

25 (A) in paragraph (1)— 


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1 (i) by striking ‘‘program of part-time 

2 employment’’ and inserting the following: 

3 ‘‘program— 

4 ‘‘(A) of employment’’; and 

5 (ii) by inserting ‘‘or’’ after ‘‘sub6 section (b)(3);’’; and 

7 (iii) by adding at the end the fol8 lowing: 

9 ‘‘(B) of full-time employment of its cooper10 ative education students in work for a private 

11 for-profit organization under an arrangement 

12 between the institution and such organization 

13 that complies with the requirements of subpara14 graphs (A) through (D) of subsection (b)(1) of 

15 this section and subsection (b)(4) of this sec16 tion;’’; 

17 (B) by striking paragraph (2); 

18 (C) in paragraph (4), by inserting ‘‘and 

19 complement and reinforce the educational goals 

20 or career goals of each student receiving assist21 ance under this part’’ after ‘‘relevant’’; and 

22 (D) by redesignating paragraphs (3), (4), 

23 and (5) as paragraphs (2), (3), and (4), respec24 tively; and 

25 (3) in subsection (d)— 


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1 (A) in paragraph (1)— 

2 (i) by striking ‘‘In any academic year 

3 to which subsection (b)(2)(A) applies, an 

4 institution shall ensure that’’ and inserting 

5 ‘‘An institution may use the’’; and 

6 (ii) by striking ‘‘are used’’; and 

7 (B) in paragraph (3), by striking ‘‘may ex8 ceed 75 percent’’ and inserting ‘‘shall not ex9 ceed 50 percent’’. 

10 SEC. 444. FLEXIBLE USE OF FUNDS. 

11 Section 445(a) (20 U.S.C. 1087–55(a)) is amended— 

12 (1) in paragraph (2), by striking ‘‘in the same 

13 State’’ and inserting ‘‘described under section 

14 442(a)(1)(B)’’; and 

15 (2) by adding at the end the following new 

16 paragraph: 

17 ‘‘(3) In addition to the carry-over sums authorized 

18 under paragraph (1) of this section, an institution may 

19 permit a student who completed the previous award period 

20 to continue to earn unearned portions of the student’s 

21 work-study award from that previous year if— 

22 ‘‘(A) any reduction in the student’s need upon 

23 which the award was based is accounted for in the 

24 remaining portion; and 


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1 ‘‘(B) the student is currently employed in a 

2 work-based learning position.’’. 

3 SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS. 

4 Section 446 (20 U.S.C. 1087–56) is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (1)— 

7 (i) by striking ‘‘10 percent or 

8 $75,000’’ and inserting ‘‘20 percent or 

9 $150,000’’; and 

10 (ii) by striking ‘‘, including commu11 nity service jobs,’’; and 

12 (B) in paragraph (2), by striking ‘‘voca13 tional’’ and inserting ‘‘career’’; and 

14 (2) in subsection (b)— 

15 (A) by striking paragraph (2); 

16 (B) by redesignating paragraphs (3) 

17 through (6) as paragraphs (4) through (7), re18 spectively; and 

19 (C) by inserting before paragraph (4) the 

20 following: 

21 ‘‘(2) provide satisfactory assurance that the in22 stitution will prioritize placing students with the low23 est expected family contribution and Federal work24 study recipients in jobs located and developed under 

25 this section; 


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1 ‘‘(3) provide a satisfactory assurance that the 

2 institution will locate and develop work-based learn3 ing opportunities through the job location develop4 ment programs;’’; and 

5 (D) in paragraph (7), by striking the pe6 riod and inserting ‘‘, including— 

7 ‘‘(A) the number of students employed in 

8 work-based learning opportunities through such 

9 program; 

10 ‘‘(B) the number of students dem11 onstrating exceptional need and employed in a 

12 work-study program through such program; and 

13 ‘‘(C) the number of students dem14 onstrating exceptional need and employed in 

15 work-based learning opportunities through such 

16 program.’’. 

17 SEC. 446. COMMUNITY SERVICE. 

18 Section 447 (20 U.S.C. 1087–57) is repealed. 

19 SEC. 447. WORK COLLEGES. 

20 Section 448 (20 U.S.C. 1087–58) is amended— 

21 (1) in subsection (b)— 

22 (A) in paragraph (1)— 

23 (i) by striking ‘‘and part E’’; and 

24 (ii) by striking ‘‘appropriated’’ and in25 serting ‘‘allocated’’; 


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1 (B) in paragraph (2), by striking ‘‘appro2 priated pursuant to’’ and inserting ‘‘allocated 

3 under’’; 

4 (2) in subsection (c), by striking ‘‘authorized 

5 by’’ and inserting ‘‘allocated under’’; 

6 (3) in subsection (e)(1)— 

7 (A) in subparagraph (C), by striking ‘‘; 

8 and’’ and inserting a semicolon; and 

9 (B) by adding at the end the following: 

10 ‘‘(E) has administered Federal work-study 

11 for at least 2 years; and’’; and 

12 (4) by amending subsection (f) to read as fol13 lows: 

14 ‘‘(f) ALLOCATION OF RESERVED FUNDS.— 

15 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

16 from the amount reserved under section 442(a)(2) 

17 for a fiscal year to carry out this section, the Sec18 retary shall allocate to each work college that sub19 mits an application under subsection (c) an amount 

20 equal to the amount that bears the same proportion 

21 to the amount appropriated for such fiscal year as 

22 the number of students eligible for employment 

23 under a work-study program under this part who 

24 are enrolled at the work college bears to the total 

25 number of students eligible for employment under a 


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1 work-study program under this part who are en2 rolled at all work colleges. 

3 ‘‘(2) REALLOTMENT OF UNMATCHED FUNDS.— 

4 If a work college is unable to match funds received 

5 under paragraph (1) in accordance with subsection 

6 (d), any unmatched funds shall be returned to the 

7 Secretary and the Secretary shall reallot such funds 

8 on the same basis as funds are allocated under para9 graph (1).’’. 

10 PART D—FEDERAL DIRECT STUDENT LOAN 

11 PROGRAM 

12 SEC. 451. TERMINATION OF FEDERAL DIRECT LOAN PRO13 GRAM UNDER PART D AND OTHER CON14 FORMING AMENDMENTS. 

15 (a) APPROPRIATIONS.—Section 451 (20 U.S.C. 

16 1087a) is amended— 

17 (1) in subsection (a), by adding at the end the 

18 following: ‘‘No sums may be expended after Sep19 tember 30, 2024, with respect to loans under this 

20 part for which the first disbursement is after such 

21 date.’’; and 

22 (2) by adding at the end, the following: 

23 ‘‘(c) TERMINATION OF AUTHORITY TO MAKE NEW

24 LOANS.—Notwithstanding subsection (a) or any other 

25 provision of law— 


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1 ‘‘(1) no new loans may be made under this part 

2 after September 30, 2024; and 

3 ‘‘(2) no funds are authorized to be appro4 priated, or may be expended, under this Act, or any 

5 other Act to make loans under this part for which 

6 the first disbursement is after September 30, 2024, 

7 except as expressly authorized by an Act of Congress en8 acted after the date of enactment of the PROSPER Act. 

9 ‘‘(d) STUDENT ELIGIBILITY BEGINNING WITH

10 AWARD YEAR 2019.— 

11 ‘‘(1) NEW BORROWERS.—No loan may be made 

12 under this part to a new borrower for which the first 

13 disbursement is after June 30, 2019. 

14 ‘‘(2) BORROWERS WITH OUTSTANDING BAL15 ANCES.—Subject to paragraph (3), with respect to a 

16 borrower who, as of July 1, 2019, has an out17 standing balance of principal or interest owing on a 

18 loan made under this part, such borrower may— 

19 ‘‘(A) in the case of such a loan made to 

20 the borrower for enrollment in a program of un21 dergraduate education, borrow loans made 

22 under this part for any program of under23 graduate education through the close of Sep24 tember 30, 2024; 


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1 ‘‘(B) in the case of such a loan made to 

2 the borrower for enrollment in a program of 

3 graduate or professional education, borrow 

4 loans made under this part for any program of 

5 graduate or professional education through the 

6 close of September 30, 2024; and 

7 ‘‘(C) in the case of such a loan made to 

8 the borrower on behalf of a dependent student 

9 for the student’s enrollment in a program of 

10 undergraduate education, borrow loans made 

11 under this part on behalf of such student 

12 through the close of September 30, 2024. 

13 ‘‘(3) LOSS OF ELIGIBILITY.—A borrower de14 scribed in paragraph (2) who borrows a loan made 

15 under part E for which the first disbursement is 

16 made on or after July 1, 2019, shall lose the bor17 rower’s eligibility to borrow loans made under this 

18 part in accordance with paragraph (2).’’. 

19 (b) PERKINS LOAN CONFORMING AMENDMENT.— 

20 Section 453(c)(2)(A) (20 U.S.C. 1087c(c)(2)(A)) is 

21 amended by inserting ‘‘, as in effect on the day before 

22 the date of enactment of the PROSPER Act and pursuant 

23 to subsection 461(a),’’ after ‘‘part E’’. 


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1 (c) APPLICABLE INTEREST RATES AND OTHER

2 TERMS AND CONDITIONS.—Section 455 (20 U.S.C. 

3 1087e) is amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1), by inserting ‘‘, and 

6 first disbursed before October 1, 2024,’’ after 

7 ‘‘under this part’’; and 

8 (B) in paragraph (2), by inserting ‘‘, and 

9 first disbursed before October 1, 2024,’’ after 

10 ‘‘under this part’’; 

11 (2) in subsection (b)(8)— 

12 (A) in the section heading, by inserting 

13 ‘‘AND BEFORE OCTOBER 1, 2024’’ after ‘‘2013’’; 

14 (B) in subparagraph (A), by inserting 

15 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 

16 2013,’’; 

17 (C) in subparagraph (B), by inserting 

18 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 

19 2013,’’; 

20 (D) in subparagraph (C), by inserting 

21 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 

22 2013,’’; and 

23 (E) in subparagraph (D), by inserting 

24 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 

25 2013,’’; 


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1 (3) in subsection (c)(2)(E), by inserting ‘‘, and 

2 before October 1, 2024’’ after ‘‘July 1, 2010’’; 

3 (4) in subsection (e)(7), in the matter preceding 

4 subparagraph (A), by inserting ‘‘, as in effect on the 

5 day before the date of enactment of the PROSPER 

6 Act and pursuant to subsection 461(a)’’ after ‘‘part 

7 E’’; 

8 (5) in subsection (g)— 

9 (A) by inserting ‘‘, and first disbursed be10 fore October 1, 2024,’’ after ‘‘under this part’’; 

11 and 

12 (B) by adding at the end the following: 

13 ‘‘The authority to make consolidation loans 

14 under this subsection expires at the close of 

15 September 30, 2024. No loan may be made 

16 under this subsection for which the disburse17 ment is on or after October 1, 2024.’’; and 

18 (6) in subsection (o)— 

19 (A) in paragraph (1), by inserting ‘‘, and 

20 before October 1, 2024,’’ after ‘‘October 1, 

21 2008’’; and 

22 (B) in paragraph (2)— 

23 (i) by inserting ‘‘and before October 

24 1, 2024,’’ after ‘‘October 1, 2008,’’; and 


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1 (ii) by inserting ‘‘, and before October 

2 1, 2024’’ after ‘‘October 1, 2008’’. 

3 SEC. 452. BORROWER DEFENSES. 

4 Section 455(h) (20 U.S.C. 1087e(h)) is amended to 

5 read as follows: 

6 ‘‘(h) BORROWER DEFENSES.— 

7 ‘‘(1) IN GENERAL.—In any proceeding to collect 

8 on a loan made under this part to a borrower, the 

9 Secretary shall abide by the following: 

10 ‘‘(A) In no event may the borrower recover 

11 any amount previously collected or be freed of 

12 amounts owed to the Secretary without submit13 ting an individually-filed application for ap14 proval. 

15 ‘‘(B) In no event may the borrower recover 

16 amounts previously collected by the Secretary, 

17 in any action arising from or relating to a loan 

18 made under this part, in an amount in excess 

19 of the amount that has been paid by the bor20 rower on such loan. 

21 ‘‘(C) In no event may the borrower recover 

22 amounts previously collected by the Secretary 

23 later than 3 years after the misconduct or 

24 breach of contract on behalf of the institution 


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1 takes place that gives rise to the borrower to 

2 assert a defense to repayment of the loan. 

3 ‘‘(D) In no event may anyone other than 

4 an administrative law judge or its equivalent 

5 preside over hearings of any kind related to ap6 plications submitted under this subsection. 

7 ‘‘(E) In no event may the Secretary ap8 prove or disapprove the borrower’s application 

9 under this subsection without allowing for the 

10 equal consideration of evidence and arguments 

11 presented by a representative on behalf of the 

12 student or students and a representative on be13 half of the institution, if either such party 

14 makes a request. 

15 ‘‘(F) In no event may the Secretary with16 hold from an institution any materials, facts, or 

17 evidence used when processing an application 

18 submitted by the borrower. 

19 ‘‘(G) In no event may the borrower of a 

20 loan made, insured or guaranteed under this 

21 title (other than a loan made under this part or 

22 a Federal ONE Loan) submit an application 

23 under this subsection without consolidating the 

24 loans of the borrower into a Federal ONE Con25 solidation Loan. 


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1 ‘‘(2) BORROWER APPLICATION REQUIRE2 MENTS.— 

3 ‘‘(A) IN GENERAL.—An application sub4 mitted by a borrower under this subsection to 

5 the Secretary shall— 

6 ‘‘(i) certify the borrower’s receipt of 

7 loan proceeds, in whole or in part, to at8 tend the named institution of higher edu9 cation; 

10 ‘‘(ii) provide evidence described in 

11 subparagraph (B) that supports a bor12 rower defense to repayment of the loan; 

13 and 

14 ‘‘(iii) indicate whether the borrower 

15 has made a claim with respect to the infor16 mation underlying the borrower defense 

17 with any third party and, if so, the amount 

18 of any payment received by the borrower 

19 or credited to the borrower’s loan obliga20 tion. 

21 ‘‘(B) EVIDENCE.—The borrower has a bor22 rower defense if— 

23 ‘‘(i) the borrower, whether as an indi24 vidual or as a member of a class, or a gov25 ernmental agency, has obtained against the 


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1 institution of higher education a non2 default, favorable contested judgment 

3 based on State or Federal law in a court 

4 or administrative tribunal of competent ju5 risdiction; 

6 ‘‘(ii) the institution of higher edu7 cation for which the borrower received the 

8 loan made under this part failed to per9 form its obligations under the terms of a 

10 contract with the student; or 

11 ‘‘(iii) the institution of higher edu12 cation described in clause (ii) or any of its 

13 representatives engaged directly in mar14 keting, recruitment or admissions activi15 ties, or any other institution of higher edu16 cation, organization, or person with whom 

17 such institution has an agreement to pro18 vide educational programs, or to provide 

19 marketing, advertising, recruiting, or ad20 missions services, made a substantial mis21 representation within the meaning of sec22 tion 487(c)(3)(B)(i)(II) that the borrower 

23 reasonably relied on when the borrower de24 cided to attend, or to continue attending, 

25 such institution. 


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1 ‘‘(3) SECRETARIAL NOTIFICATION REQUIRE2 MENTS.— 

3 ‘‘(A) RECEIPT OF APPLICATION.—Upon 

4 receipt of a borrower’s application, the Sec5 retary— 

6 ‘‘(i) if the borrower is not in default 

7 on the loan for which a borrower defense 

8 has been asserted, shall grant a forbear9 ance and notify the borrower of the option 

10 to decline the forbearance and to continue 

11 making payments on the loan; 

12 ‘‘(ii) if the borrower is in default on 

13 the loan for which a borrower defense has 

14 been asserted— 

15 ‘‘(I) shall suspend collection ac16 tivity on the loan until the Secretary 

17 issues a decision on the borrower’s 

18 claim; 

19 ‘‘(II) shall notify the borrower of 

20 the suspension of collection activity 

21 and explain that collection activity will 

22 resume if the Secretary determines 

23 that the borrower does not qualify for 

24 a full discharge; and 


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1 ‘‘(III) shall notify the borrower 

2 of the option to continue making pay3 ments under a rehabilitation agree4 ment or other repayment agreement 

5 on the defaulted loan; and 

6 ‘‘(iii) shall to the extent possible, no7 tify the institutions against which the ap8 plication is filed, which notification shall 

9 include— 

10 ‘‘(I) the reasons that the applica11 tion has been filed; and 

12 ‘‘(II) the amount of relief re13 quested. 

14 ‘‘(B) APPROVED APPLICATION.—If a bor15 rower’s application is approved in full or in 

16 part, the Secretary shall— 

17 ‘‘(i) notify the borrower and the insti18 tution in writing of that determination and 

19 of the relief provided; and 

20 ‘‘(ii) inform the institution of the op21 portunity to request a one-time reconsider22 ation of the claim in the application if new 

23 evidence that was not previously provided 

24 can be identified. 


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1 ‘‘(C) APPLICATION NOT APPROVED.—If a 

2 borrower’s application is not approved in full or 

3 in part, the Secretary— 

4 ‘‘(i) shall notify the borrower and the 

5 institution of the reasons for the denial, 

6 the evidence that was relied upon, any por7 tion of the loan that is due and payable to 

8 the Secretary, whether the Secretary will 

9 reimburse any amounts previously col10 lected, and inform the borrower that the 

11 loan will return to its status prior to the 

12 borrower’s submission of the application; 

13 and 

14 ‘‘(ii) shall inform the borrower of the 

15 opportunity to request a one-time reconsid16 eration of the claim in the application if 

17 new evidence that was not previously pro18 vided can be identified. 

19 ‘‘(D) CONSOLIDATION.—During a pro20 ceeding for an individual borrower, the Sec21 retary may consolidate individually-filed appli22 cations that have common facts and claims and 

23 resolve the borrowers’ borrower defense claims 

24 for faster processing. 


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1 ‘‘(E) NEW EVIDENCE DEFINED.—For pur2 poses of this paragraph, the term ‘new evidence’ 

3 means relevant evidence that the borrower or 

4 the institution did not previously provide and 

5 that was not identified in the final decision as 

6 evidence that was relied upon for the final deci7 sion. If accepted for reconsideration by the Sec8 retary, the Secretary shall follow the procedure 

9 under this paragraph. 

10 ‘‘(4) CALCULATION OF RELIEF.—The Secretary 

11 shall determine the appropriate method for calcu12 lating the amount of relief to be awarded to a bor13 rower as a result of a proceeding described in this 

14 subsection based on the materials, facts, and evi15 dence presented during the proceeding. 

16 ‘‘(5) FURTHER RELIEF.—The Secretary may 

17 afford the borrower such further relief as the Sec18 retary determines is appropriate under the cir19 cumstances, but which shall not exceed the fol20 lowing: 

21 ‘‘(A) Reimbursing the borrower for 

22 amounts paid toward the loan voluntarily or 

23 through enforced collection. 


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1 ‘‘(B) Restoring eligibility for assistance 

2 under this title after determining that the bor3 rower is not in default on the loan. 

4 ‘‘(C) Updating reports to consumer report5 ing agencies to which the Secretary previously 

6 made adverse credit reports with regard to a 

7 loan made under this part. 

8 ‘‘(6) RECOVERY.— 

9 ‘‘(A) IN GENERAL.—The Secretary may 

10 initiate an appropriate proceeding to require the 

11 institution of higher education whose act or 

12 omission resulted in the borrower’s successful 

13 defense against repayment of a loan made 

14 under this part to pay to the Secretary the 

15 amount of the loan to which the defense applies 

16 not later than 3 years from the end of the last 

17 award year in which the student attended the 

18 institution. 

19 ‘‘(B) NOTICE.—The Secretary may initiate 

20 a proceeding to collect at any time if the insti21 tution received notice of the claim before the 

22 end of the later of the periods described in sub23 paragraph (A). For purposes of this subpara24 graph, notice includes receipt of— 


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1 ‘‘(i) actual notice from the borrower, 

2 from a representative of the borrower, or 

3 from the Department; 

4 ‘‘(ii) a class action complaint assert5 ing relief for a class that may include the 

6 borrower; or 

7 ‘‘(iii) written notice, including a civil 

8 investigative demand or other written de9 mand for information, from a Federal or 

10 State agency that has power to initiate an 

11 investigation into conduct of the institution 

12 of higher education relating to specific pro13 grams, periods, or practices that may have 

14 affected the borrower.’’. 

15 SEC. 453. ADMINISTRATIVE EXPENSES. 

16 Section 458(a) (20 U.S.C. 1087h)— 

17 (1) in paragraph (3)— 

18 (A) by striking ‘‘2007’’ each place it ap19 pears and inserting ‘‘2019’’; 

20 (B) by striking ‘‘2014’’ each place it ap21 pears and inserting ‘‘2024’’; and 

22 (C) by striking ‘‘part and part B, including 

23 the costs of the direct student loan programs 

24 under this part’’ and inserting ‘‘title’’; 

25 (2) in paragraph (6)— 


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

2 ‘‘2010’’ and inserting ‘‘2019’’; and 

3 (B) in subparagraph (C), by striking 

4 ‘‘training’’ and inserting ‘‘education’’; 

5 (3) by striking paragraph (7); and 

6 (4) by redesignating paragraph (8) as para7 graph (7). 

8 SEC. 454. LOAN CANCELLATION FOR TEACHERS. 

9 Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is 

10 amended by striking ‘‘that qualifies under section 

11 465(a)(2)(A) for loan cancellation for Perkins loan recipi12 ents who teach in such schools or locations’’ and inserting 

13 ‘‘described in section 420N(b)(1)(B)’’. 

14 PART E—FEDERAL ONE LOANS 

15 SEC. 461. WIND-DOWN OF FEDERAL PERKINS LOAN PRO16 GRAM. 

17 (a) IN GENERAL.—Except as otherwise provided in 

18 this section and notwithstanding section 462, the provi19 sions of part E of title IV of the Higher Education Act 

20 of 1965 (20 U.S.C. 1087aa et seq.), as in effect on the 

21 day before the date of enactment of this Act, are deemed 

22 to be incorporated in this subsection as though set forth 

23 fully in this subsection, and shall have the same force and 

24 effect as on such day. 

25 (b) CLOSE-OUT AUDITS.— 


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1 (1) IN GENERAL.—In the case of an institution 

2 of higher education that desires to have a final audit 

3 of its participation under the program under part E 

4 of title IV of the Higher Education Act of 1965 (20 

5 U.S.C. 1087aa et seq.), as in effect pursuant to sub6 section (a), at the same time as its annual financial 

7 and compliance audit under section 487(c) of such 

8 Act (20 U.S.C. 1094(c)), such institution shall sub9 mit to the Secretary a request, in writing, for such 

10 an arrangement not later than 60 days after the in11 stitution terminates its participation under such pro12 gram. 

13 (2) TERMINATION OF PARTICIPATION.—For 

14 purposes of this subsection, an institution shall be 

15 considered to have terminated its participation under 

16 the program described in paragraph (1), if the insti17 tution— 

18 (A)(i) has made a determination not to 

19 service and collect student loans made available 

20 from funds under part E of title IV of the 

21 Higher Education Act of 1965 (20 U.S.C. 

22 1087aa et seq.), as in effect pursuant to sub23 section (a); or 

24 (ii) has completed the servicing and collec25 tion of such student loans; and 


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1 (B) has completed the asset distribution 

2 required under section 466(b) of the Higher 

3 Education Act of 1965 (20 U.S.C. 1087ff(b)), 

4 as in effect pursuant to subsection (a). 

5 (c) COLLECTION OF INTEREST ON CERTAIN STU6 DENT LOANS.—In the case of an institution of higher edu7 cation that, on or after October 1, 2006, loaned an 

8 amount to its student loan fund established under part 

9 E of title IV of the Higher Education Act of 1965 (20 

10 U.S.C. 1087aa et seq.), as in effect pursuant to subsection 

11 (a), for the purpose of making student loans from such 

12 fund, and that, before the date of enactment of this Act, 

13 has repaid to itself the amount loaned to such student loan 

14 fund, the institution shall collect any interest earned on 

15 such student loans. 

16 (d) ASSIGNMENT OF LOANS TO SECRETARY.—Not17 withstanding the requirements of section 463(a)(5) of the 

18 Higher Education Act of 1965 (20 U.S.C. 1087cc(a)(5)), 

19 as in effect pursuant to subsection (a), if an institution 

20 of higher education determines not to service and collect 

21 student loans made available from funds under part E of 

22 such Act (20 U.S.C. 1087aa et seq.), as so in effect— 

23 (1) the institution shall assign, during the re24 payment period, any notes or evidence of obligations 


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1 of student loans made from such funds to the Sec2 retary; and 

3 (2) the Secretary shall deposit any sums col4 lected on such notes or obligations (less an amount 

5 not to exceed 30 percent of any such sums collected 

6 to cover that Secretary’s collection costs) into the 

7 Treasury of the United States. 

8 (e) CLOSED SCHOOL DISCHARGE.—The amendments 

9 made by section 427 to section 437(c) of the Higher Edu10 cation Act of 1965 (20 U.S.C. 1087), relating to closed 

11 school discharge, shall apply with respect to any loans dis12 charged on or after the date of enactment of this Act 

13 under section 464(g) of such Act (20 U.S.C. 10877dd(g)), 

14 as in effect pursuant to subsection (a)). 

15 SEC. 462. FEDERAL ONE LOAN PROGRAM. 

16 Part E of title IV (20 U.S.C. 1087aa et seq.) is 

17 amended to read as follows: 

18 ‘‘SEC. 461. PROGRAM AUTHORITY. 

19 ‘‘(a) IN GENERAL.—There are hereby made available, 

20 in accordance with the provisions of this part, such sums 

21 as may be necessary to make loans to all eligible students 

22 (and the eligible parents of such students) in attendance 

23 at participating institutions of higher education selected 

24 by the Secretary to enable such students to pursue their 

25 courses of study at such institutions during the period beVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00263 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 ginning July 1, 2019. Loans made under this part shall 

2 be made by participating institutions that have agree3 ments with the Secretary to originate loans. 

4 ‘‘(b) DESIGNATION.—The program established under 

5 this part shall be referred to as the ‘Federal ONE Loan 

6 Program’. 

7 ‘‘(c) ONE LOANS.—Except as otherwise specified in 

8 this part, loans made to borrowers under this part shall 

9 be known as ‘Federal ONE Loans’. 

10 ‘‘SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS. 

11 ‘‘(a) IN GENERAL.—The Secretary shall provide, on 

12 the basis of eligibility of students at each participating in13 stitution, and parents of such students, for such loans, 

14 funds for student and Parent Loans under this part di15 rectly to an institution of higher education that has an 

16 agreement with the Secretary under section 464(a) to par17 ticipate in the Federal ONE Loan Program under this 

18 part and that also has an agreement with the Secretary 

19 under section 464(b) to originate loans under this part. 

20 ‘‘(b) PARALLEL TERMS.—Subsections (b), (c), and 

21 (d) of section 452 shall apply to the loan program under 

22 this part in the same manner that such subsections apply 

23 to the loan program under part D. 


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1 ‘‘SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPA2 TION AND ORIGINATION. 

3 ‘‘(a) GENERAL AUTHORITY.—The Secretary shall 

4 enter into agreements pursuant to section 464(a) with in5 stitutions of higher education to participate in the Federal 

6 ONE Loan Program under this part, and agreements pur7 suant to section 464(b) with institutions of higher edu8 cation, to originate loans in such program, for academic 

9 years beginning on or after July 1, 2019. Such agreements 

10 for the academic year 2019–2020 shall, to the extent fea11 sible, be entered into not later than January 1, 2019. 

12 ‘‘(b) SELECTION CRITERIA AND PROCEDURE.—The 

13 application and selection procedure for an institution of 

14 higher education desiring to participate in the loan pro15 gram under this part shall be the application and selection 

16 procedure described in section 453(b) for an institution 

17 of higher education desiring to participate in the loan pro18 gram under part D. 

19 ‘‘(c) ELIGIBLE INSTITUTIONS.—The Secretary may 

20 not select an institution of higher education for participa21 tion under this part unless such institution is an eligible 

22 institution under section 487(a). 

23 ‘‘SEC. 464. AGREEMENTS WITH INSTITUTIONS. 

24 ‘‘(a) PARTICIPATION AGREEMENTS.—An agreement 

25 with any institution of higher education for participation 


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1 in the Federal ONE Loan Program under this part 

2 shall— 

3 ‘‘(1) provide for the establishment and mainte4 nance of a direct student loan program at the insti5 tution under which the institution will— 

6 ‘‘(A) identify eligible students who seek 

7 student financial assistance at such institution 

8 in accordance with section 484; 

9 ‘‘(B) provide a statement that certifies the 

10 eligibility of any student to receive a loan under 

11 this part that is not in excess of the annual or 

12 aggregate limit applicable to such loan, except 

13 that the institution may, in exceptional cir14 cumstances identified by the Secretary pursuant 

15 to section 454(a)(1)(C), refuse to certify a 

16 statement that permits a student to receive a 

17 loan under this part, if the reason for such ac18 tion is documented and provided in written 

19 form to such student; 

20 ‘‘(C) set forth a schedule for disbursement 

21 of the proceeds of the loan in installments, con22 sistent with the requirements of section 465(a); 

23 and 

24 ‘‘(D) provide timely and accurate informa25 tion, concerning the status of student borrowers 


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1 (and students on whose behalf parents borrow 

2 under this part) while such students are in at3 tendance at the institution and concerning any 

4 new information of which the institution be5 comes aware for such students (or their par6 ents) after such borrowers leave the institution, 

7 to the Secretary for the servicing and collecting 

8 of loans made under this part; 

9 ‘‘(2) provide assurances that the institution will 

10 comply with requirements established by the Sec11 retary relating to student loan information with re12 spect to loans made under this part; 

13 ‘‘(3) provide that the institution accepts respon14 sibility and financial liability stemming from its fail15 ure to perform its functions pursuant to the agree16 ment; 

17 ‘‘(4) provide for the implementation of a quality 

18 assurance system, as established by the Secretary 

19 and developed in consultation with institutions of 

20 higher education, to ensure that the institution is 

21 complying with program requirements and meeting 

22 program objectives; and 

23 ‘‘(5) provide that the institution will not charge 

24 any fees of any kind, however described, to student 

25 or parent borrowers for origination activities or the 


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1 provision of any information necessary for a student 

2 or parent to receive a loan under this part, or any 

3 benefits associated with such loan. 

4 ‘‘(b) ORIGINATION.—An agreement with any institu5 tion of higher education for the origination of loans under 

6 this part shall— 

7 ‘‘(1) supplement the agreement entered into in 

8 accordance with subsection (a); 

9 ‘‘(2) include provisions established by the Sec10 retary that are similar to the participation agree11 ment provisions described in paragraphs (2), (3), 

12 (4), and (5) of subsection (a), as modified to relate 

13 to the origination of loans by the institution; 

14 ‘‘(3) provide that the institution will originate 

15 loans to eligible students and parents in accordance 

16 with this part; and 

17 ‘‘(4) provide that the note or evidence of obliga18 tion on the loan shall be the property of the Sec19 retary. 

20 ‘‘(c) WITHDRAWAL PROCEDURES.— 

21 ‘‘(1) IN GENERAL.—An institution of higher 

22 education participating in the Federal ONE Loan 

23 Program under this part may withdraw from the 

24 program by providing written notice to the Secretary 


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1 of the intent to withdraw not less than 60 days be2 fore the intended date of withdrawal. 

3 ‘‘(2) DATE OF WITHDRAWAL.—Except in cases 

4 in which the Secretary and an institution of higher 

5 education agree to an earlier date, the date of with6 drawal from the Federal ONE Loan Program under 

7 this part of an institution of higher education shall 

8 be the later of— 

9 ‘‘(A) 60 days after the institution submits 

10 the notice required under paragraph (1); or 

11 ‘‘(B) a date designated by the institution. 

12 ‘‘SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIM13 ITS, INTEREST RATES, AND LOAN FEES. 

14 ‘‘(a) REQUIREMENTS FOR DISBURSEMENT OF STU15 DENT LOANS.— 

16 ‘‘(1) MULTIPLE DISBURSEMENT REQUIRED.— 

17 ‘‘(A) REQUIRED DISBURSEMENTS.—The 

18 proceeds of any loan made under this part that 

19 is made for any period of enrollment shall be 

20 disbursed as follows: 

21 ‘‘(i) The disbursement of the first in22 stallment of proceeds shall, with respect to 

23 any student other than a student described 

24 in subparagraph (B)(i), be made not more 

25 than 30 days prior to the beginning of the 


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1 period of enrollment, and not later than 30 

2 days after the beginning of such period of 

3 enrollment. 

4 ‘‘(ii) The disbursement of an install5 ment of proceeds shall be made in substan6 tially equal monthly or weekly installments 

7 over the period of enrollment for which the 

8 loan was made, except that installments 

9 may be unequal as necessary to permit the 

10 institution to adjust for unequal costs 

11 (which may include upfront costs such as 

12 tuition and fees) incurred or estimated fi13 nancial assistance received by the student. 

14 ‘‘(B) FIRST-YEAR STUDENTS.— 

15 ‘‘(i) IN GENERAL.—The first install16 ment of the proceeds of any loan made 

17 under this part that is made to a student 

18 borrower who is entering the first year of 

19 a program of undergraduate education, 

20 and who has not previously obtained a loan 

21 under this part, shall not (regardless of the 

22 amount of such loan or the duration of the 

23 period of enrollment) be presented by the 

24 institution of higher education to the stu25 dent for endorsement until 30 days after 


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1 the borrower begins a course of study, but 

2 may be delivered to the eligible institution 

3 prior to the end of that 30-day period. 

4 ‘‘(ii) EXEMPTION.—An institution of 

5 higher education in which each educational 

6 program has a loan repayment rate (as de7 termined under section 481B(c)) for the 

8 most recent fiscal year for which data are 

9 available that is greater than 60 percent 

10 shall be exempt from the requirements of 

11 clause (i). 

12 ‘‘(2) WITHDRAWING OF SUCCEEDING DIS13 BURSEMENTS.— 

14 ‘‘(A) WITHDRAWING STUDENTS.—In the 

15 case in which the Secretary is informed by the 

16 borrower or the institution that the borrower 

17 has ceased to be enrolled before the disburse18 ment of the second or any succeeding install19 ment, the Secretary shall withhold such dis20 bursement. Any disbursement which is so with21 held shall be credited to the borrower’s loan and 

22 treated as a prepayment on the principal of the 

23 loan. 

24 ‘‘(B) STUDENTS RECEIVING OVER25 AWARDS.—If the sum of a disbursement for any 


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1 borrower and the other financial aid obtained 

2 by borrower exceeds the amount of assistance 

3 for which the borrower is eligible under this 

4 title, the institution the borrower, or dependent 

5 student, in the case of a parent borrower, is at6 tending shall withhold and return to the Sec7 retary the portion (or all) of such installment 

8 that exceeds such eligible amount, except that 

9 overawards permitted pursuant to section 

10 443(b)(4) shall not be construed to be over11 awards for purposes of this subparagraph. Any 

12 portion (or all) of a disbursement installment 

13 which is so returned shall be credited to the 

14 borrower’s loan and treated as a prepayment on 

15 the principal of the loan. 

16 ‘‘(3) EXCLUSION OF CONSOLIDATION AND FOR17 EIGN STUDY LOANS.—The provisions of this sub18 section shall not apply in the case of a Federal ONE 

19 Consolidation Loan, or a loan made to a student to 

20 cover the cost of attendance in a program of study 

21 abroad approved by the home eligible institution if 

22 each of the educational programs of such home eligi23 ble institution has a loan repayment rate (as cal24 culated under section 481B(c)) for the most recent 


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1 fiscal year for which data are available of greater 

2 than 70 percent. 

3 ‘‘(4) BEGINNING OF PERIOD OF ENROLL4 MENT.—For purposes of this subsection, a period of 

5 enrollment begins on the first day that classes begin 

6 for the applicable period of enrollment. 

7 ‘‘(b) AMOUNT OF LOAN.— 

8 ‘‘(1) IN GENERAL.—The determination of the 

9 amount of a loan disbursed by an eligible institution 

10 under this section shall be the lesser of— 

11 ‘‘(A) an amount that is equal to the esti12 mated loan amount, as determined by the insti13 tution by calculating— 

14 ‘‘(i) the estimated cost of attendance 

15 at the institution, minus 

16 ‘‘(ii)(I) any estimated financial assist17 ance reasonably available to such student, 

18 including assistance that the student will 

19 receive from a Federal grant, including a 

20 Federal Pell Grant, a State grant, an insti21 tutional grant, or a scholarship or grant 

22 from another source, that is known to the 

23 institution at the time the student’s deter24 mination of need is made; and 


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1 ‘‘(II) in the case of a loan to a 

2 parent, the amount of a loan awarded 

3 under this part to the parent’s child; 

4 or 

5 ‘‘(B) the maximum Federal loan amount 

6 for which such borrower is eligible in accord7 ance with paragraph (2). 

8 ‘‘(2) LOAN LIMITS.— 

9 ‘‘(A) ANNUAL LIMITS.—Except as provided 

10 under subparagraph (B), (C), or (D), the 

11 amount of loans made under this part that an 

12 eligible student or parent borrower may borrow 

13 for an academic year shall be as follows: 

14 ‘‘(i) UNDERGRADUATE STUDENTS.— 

15 With respect to enrollment in a program of 

16 undergraduate education at an eligible in17 stitution— 

18 ‘‘(I) in the case of a dependent 

19 student— 

20 ‘‘(aa) who has not success21 fully completed the first year of a 

22 program of undergraduate edu23 cation, $7,500; 

24 ‘‘(bb) who has successfully 

25 completed such first year but has 


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1 not successfully completed the re2 mainder of a program of under3 graduate education, $8,500; and 

4 ‘‘(cc) who has successfully 

5 completed the first and second 

6 years of a program of under7 graduate education but has not 

8 successfully completed the re9 mainder of such program, 

10 $9,500; 

11 ‘‘(II) in the case of an inde12 pendent student, or a dependent stu13 dent whose parents are unable to bor14 row a loan under this part on behalf 

15 of such student— 

16 ‘‘(aa) who has not success17 fully completed the first year of a 

18 program of undergraduate edu19 cation, $11,500; 

20 ‘‘(bb) who has successfully 

21 completed such first year but has 

22 not successfully completed the re23 mainder of a program of under24 graduate education, $12,500; and 


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1 ‘‘(cc) who has successfully 

2 completed the first and second 

3 years of a program of under4 graduate education but has not 

5 successfully completed the re6 mainder of such program, 

7 $14,500; and 

8 ‘‘(III) in the case of a student 

9 who is enrolled in a program of un10 dergraduate education that is less 

11 than one academic year, the maximum 

12 annual loan amount that such student 

13 may receive may not exceed the 

14 amount that bears the same ratio to 

15 the amount specified in subclause (I) 

16 or (II), as applicable, as the length of 

17 such program measured in semester, 

18 trimester, quarter, or clock hours 

19 bears to one academic year. 

20 ‘‘(ii) GRADUATE OR PROFESSIONAL

21 STUDENTS.—In the case of a graduate or 

22 professional student for enrollment in a 

23 program of graduate or professional edu24 cation at an eligible institution, $28,500. 


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1 ‘‘(iii) PARENT BORROWERS.—In the 

2 case of a parent borrowing a loan under 

3 this part on behalf of a dependent student 

4 for the student’s enrollment in a program 

5 of undergraduate education at an eligible 

6 institution, $12,500 per each such student. 

7 ‘‘(iv) COURSEWORK FOR UNDER8 GRADUATE ENROLLMENT.—With respect 

9 to enrollment in coursework specified in 

10 section 484(b)(3)(B) necessary for enroll11 ment in an undergraduate degree or cer12 tificate program— 

13 ‘‘(I) in the case of a dependent 

14 student, $2,625; 

15 ‘‘(II) in the case of a parent bor16 rowing a loan under this part on be17 half of a dependent student for the 

18 student’s enrollment in such 

19 coursework, $6,000; and 

20 ‘‘(III) in the case an independent 

21 student, or a dependent student whose 

22 parents are unable to borrow a loan 

23 under this part on behalf of such stu24 dent, $8,625. 


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1 ‘‘(v) COURSEWORK FOR GRADUATE OR

2 PROFESSIONAL ENROLLMENT OR TEACHER

3 EMPLOYMENT.—With respect to the enroll4 ment of a student who has obtained a bac5 calaureate degree in coursework specified 

6 in section 484(b)(3)(B) necessary for en7 rollment in a graduate or professional de8 gree or certificate program, or coursework 

9 specified in section 484(b)(4)(B) necessary 

10 for a professional credential or certification 

11 from a State required for employment as a 

12 teacher in an elementary or secondary 

13 school, in the case of a student (without 

14 regard to whether the student is a depend15 ent student or dependent student), 

16 $12,500. 

17 ‘‘(B) AGGREGATE LIMITS.—Except as pro18 vided under subparagraph (C), (D), or (E), the 

19 maximum aggregate amount of loans under this 

20 part and parts B and D that an eligible student 

21 or parent borrower may borrow shall be— 

22 ‘‘(i) for enrollment in a program of 

23 undergraduate education at an eligible in24 stitution, including for enrollment in 


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1 coursework described in clause (iv) or (v) 

2 of subparagraph (A)— 

3 ‘‘(I) in the case of a dependent 

4 student, $39,000; 

5 ‘‘(II) in the case of an inde6 pendent student, or an dependent stu7 dent whose parents are unable to re8 ceive a loan under this part on behalf 

9 of such student, $60,250; and 

10 ‘‘(III) in the case of a parent 

11 borrowing a loan under this part on 

12 behalf of a dependent student for the 

13 student’s enrollment in such a pro14 gram, $56,250 per each such student.; 

15 and 

16 ‘‘(ii) in the case of a graduate or pro17 fessional student for enrollment in a pro18 gram of graduate or professional education 

19 at an eligible institution, $150,000. 

20 ‘‘(C) APPLICATION OF LIMITS TO BOR21 ROWERS WITH PART B OR D LOANS.— 

22 ‘‘(i) GRADUATE OR PROFESSIONAL

23 STUDENTS.—In the case of a graduate or 

24 professional student who is not described 

25 in subparagraph (E) and who has received 


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1 loans made under part B or D for enroll2 ment in a graduate or professional pro3 gram at an eligible institution, the total 

4 amount of which equal or exceed $28,500 

5 as of the time of disbursement, the student 

6 may continue to borrow the amount of 

7 loans under this part necessary to complete 

8 such program without regard to the aggre9 gate limit under subparagraph (B)(ii), ex10 cept that the— 

11 ‘‘(I) amount of such loans shall 

12 not exceed the annual limits under 

13 subparagraph (A)(ii) for any academic 

14 year beginning after June 30, 2019; 

15 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, 

20 2024. 

21 ‘‘(ii) PARENT BORROWERS.—In the 

22 case of a parent borrower who has received 

23 loans made under part B or D on behalf 

24 of a dependent student for the student’s 

25 enrollment in a program of undergraduate 


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1 education at an eligible institution, the 

2 total amount of which equal or exceed 

3 $12,500 for such student as of the time of 

4 disbursement, the parent borrower may 

5 continue to borrow the amount of loans 

6 under this part necessary for such student 

7 to complete such program without regard 

8 to the aggregate limit under subparagraph 

9 (B)(i)(III), except that the— 

10 ‘‘(I) amount of such loans shall 

11 not exceed the annual limits under 

12 subparagraph (A)(iii) for any aca13 demic year beginning after June 30, 

14 2019; and 

15 ‘‘(II) the authority to borrow 

16 loans in accordance with this sub17 clause shall terminate at the end of 

18 the academic year ending before Sep19 tember 30, 2024. 

20 ‘‘(D) INSTITUTIONAL DETERMINED LIM21 ITS.— 

22 ‘‘(i) IN GENERAL.—Notwithstanding 

23 any other provision of this subsection, an 

24 eligible institution (at the discretion of a 

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1 tion) may prorate or limit the amount of 

2 a loan any student enrolled in a program 

3 of study at that institution may borrow 

4 under this part for an academic year— 

5 ‘‘(I) if the institution, using the 

6 most recently available data from the 

7 Bureau of Labor Statistics for the av8 erage starting salary in the region in 

9 which the institution is located for 

10 typical occupations pursued by grad11 uates of such program, can reasonably 

12 demonstrate that student debt levels 

13 are or would be excessive for such 

14 program; 

15 ‘‘(II) in a case in which the stu16 dent is enrolled on a less than full17 time basis or the student is enrolled 

18 for less than the period of enrollment 

19 to which the annual loan limit applies 

20 under this subsection, based on the 

21 student’s enrollment status; 

22 ‘‘(III) based on the credential 

23 level (such as a degree, certificate, or 

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1 tial) that the student would attain 

2 upon completion of such program; or 

3 ‘‘(IV) based on the year of the 

4 program for which the student is 

5 seeking such loan. 

6 ‘‘(ii) APPLICATION TO ALL STU7 DENTS.—Any proration or limiting of loan 

8 amounts under clause (i) shall be applied 

9 in the same manner to all students en10 rolled in the institution or program of 

11 study. 

12 ‘‘(iii) INCREASES FOR INDIVIDUAL

13 STUDENTS.—Upon the request of a stu14 dent whose loan amount for an academic 

15 year has been prorated or limited under 

16 clause (i), an eligible institution (at the 

17 discretion of the financial aid adminis18 trator at the institution) may increase such 

19 loan amount to an amount not exceeding 

20 the annual loan amount applicable to such 

21 student under this subparagraph for such 

22 academic year if such student dem23 onstrates special circumstances or excep24 tional need. 


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1 ‘‘(E) INCREASES FOR CERTAIN GRADUATE

2 OR PROFESSIONAL STUDENTS.— 

3 ‘‘(i) ADDITIONAL ANNUAL

4 AMOUNTS.—Subject to clause (iii) of this 

5 subparagraph, in addition to the loan 

6 amount for an academic year described in 

7 subparagraph (A)(ii)— 

8 ‘‘(I) a graduate or professional 

9 student who is enrolled in a program 

10 of study to become a doctor of 

11 allopathic medicine, doctor of osteo12 pathic medicine, doctor of dentistry, 

13 doctor of veterinary medicine, doctor 

14 of optometry, doctor of podiatric med15 icine, doctor of naturopathic medicine, 

16 or doctor of naturopathy may borrow 

17 an additional— 

18 ‘‘(aa) in the case of a pro19 gram with a 9-month academic 

20 year, $20,000 for an academic 

21 year; or 

22 ‘‘(bb) in the case of a pro23 gram with a 12-month academic 

24 year, $26,667 for an academic 

25 year; and 


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1 ‘‘(II) a graduate or professional 

2 student who is enrolled in a program 

3 of study to become a doctor of phar4 macy, doctor of chiropractic medicine, 

5 or a physician’s assistant, or receive a 

6 graduate degree in public health, doc7 toral degree in clinical psychology, or 

8 a masters or doctoral degree in health 

9 administration may borrow an addi10 tional— 

11 ‘‘(aa) in the case of a pro12 gram with a 9-month academic 

13 year, $12,500 for an academic 

14 year; or 

15 ‘‘(bb) in the case of a pro16 gram with a 12-month academic 

17 year, $16,667 for an academic 

18 year. 

19 ‘‘(ii) AGGREGATE LIMIT.—Subject to 

20 clause (iii) of this subparagraph, the max21 imum aggregate amount of loans under 

22 this part and parts B and D that a stu23 dent described in clause (i) may borrow 

24 shall be $235,500. 


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1 ‘‘(iii) LIMITATION.—In the case of a 

2 graduate or professional student described 

3 in clause (i) of this subparagraph who has 

4 received loans made under part B or D for 

5 enrollment in a graduate or professional 

6 program at an eligible institution, the total 

7 amount of which equal or exceed $34,000 

8 as of the time of disbursement, the student 

9 may continue to borrow the amount of 

10 loans under this part necessary to complete 

11 such program without regard to the aggre12 gate limit under clause (ii) of this subpara13 graph, except that the— 

14 ‘‘(I) amount of such loans shall 

15 not exceed the annual limits under 

16 clause (i) of this subparagraph for 

17 any academic year beginning after 

18 June 30, 2019; and 

19 ‘‘(II) authority to borrow loans in 

20 accordance with this subclause shall 

21 terminate at the end of the academic 

22 year ending before September 30, 

23 2024. 

24 ‘‘(c) INTEREST RATE PROVISIONS FOR FEDERAL

25 ONE LOANS.— 


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1 ‘‘(1) UNDERGRADUATE ONE LOANS.—For Fed2 eral ONE Loans issued to undergraduate students, 

3 the applicable rate of interest shall, for loans dis4 bursed during any 12-month period beginning on 

5 July 1 and ending on June 30, be determined on the 

6 preceding June 1 and be equal to the lesser of— 

7 ‘‘(A) a rate equal to the high yield of the 

8 10-year Treasury note auctioned at the final 

9 auction held prior to such June 1 plus 2.05 per10 cent; or 

11 ‘‘(B) 8.25 percent. 

12 ‘‘(2) GRADUATE AND PROFESSIONAL ONE

13 LOANS.—For Federal ONE Loans issued to grad14 uate or professional students, the applicable rate of 

15 interest shall, for loans disbursed during any 12- 

16 month period beginning on July 1 and ending on 

17 June 30, be determined on the preceding June 1 

18 and be equal to the lesser of— 

19 ‘‘(A) a rate equal to the high yield of the 

20 10-year Treasury note auctioned at the final 

21 auction held prior to such June 1 plus 3.6 per22 cent; or 

23 ‘‘(B) 9.5 percent. 

24 ‘‘(3) PARENT ONE LOANS.—For Federal ONE 

25 Parent Loans, the applicable rate of interest shall, 


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1 for loans disbursed during any 12-month period be2 ginning on July 1 and ending on June 30, be deter3 mined on the preceding June 1 and be equal to the 

4 lesser of— 

5 ‘‘(A) a rate equal to the high yield of the 

6 10-year Treasury note auctioned at the final 

7 auction held prior to such June 1 plus 4.6 per8 cent; or 

9 ‘‘(B) 10.5 percent. 

10 ‘‘(4) CONSOLIDATION LOANS.—Any Federal 

11 ONE Consolidation Loan for which the application 

12 is received on or after July 1, 2019, shall bear inter13 est at an annual rate on the unpaid principal bal14 ance of the loan that is equal to the weighted aver15 age of the interest rates on the loans consolidated, 

16 rounded to the nearest higher one-eighth of one per17 cent. 

18 ‘‘(5) PUBLICATION.—The Secretary shall deter19 mine the applicable rates of interest under this sub20 section after consultation with the Secretary of the 

21 Treasury and shall publish such rate in the Federal 

22 Register as soon as practicable after the date of de23 termination. 


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1 ‘‘(6) RATE.—The applicable rate of interest de2 termined under this subsection for a loan under this 

3 part shall be fixed for the period of the loan. 

4 ‘‘(d) PROHIBITION ON CERTAIN REPAYMENT INCEN5 TIVES.—Notwithstanding any other provision of this part, 

6 the Secretary is prohibited from authorizing or providing 

7 any repayment incentive or subsidy not otherwise author8 ized under this part to encourage on-time repayment of 

9 a loan under this part, including any reduction in the in10 terest paid by a borrower of such a loan, except that the 

11 Secretary may provide for an interest rate reduction of 

12 not more than 0.25 percentage points for a borrower who 

13 agrees to have payments on such a loan automatically deb14 ited from a bank account. 

15 ‘‘(e) LOAN FEE.—The Secretary shall not charge the 

16 borrower of a loan made under this part an origination 

17 fee. 

18 ‘‘(f) ARMED FORCES STUDENT LOAN INTEREST

19 PAYMENT PROGRAM.— 

20 ‘‘(1) AUTHORITY.—Using funds received by 

21 transfer to the Secretary under section 2174 of title 

22 10, United States Code, for the payment of interest 

23 on a loan made under this part to a member of the 

24 Armed Forces, the Secretary shall pay the interest 

25 on the loan as due for a period not in excess of 36 


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1 consecutive months. The Secretary may not pay in2 terest on such a loan out of any funds other than 

3 funds that have been so transferred. 

4 ‘‘(2) DEFERMENT.—During the period in which 

5 the Secretary is making payments on a loan under 

6 paragraph (1), the Secretary shall grant the bor7 rower administrative deferment, in the form of a 

8 temporary cessation of all payments on the loan 

9 other than the payments of interest on the loan that 

10 are made under that paragraph. 

11 ‘‘(g) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY

12 SERVICE MEMBERS.— 

13 ‘‘(1) IN GENERAL .—Notwithstanding any other 

14 provision of this part and in accordance with para15 graphs (2) and (4), interest shall not accrue for an 

16 eligible military borrower on a loan made under this 

17 part. 

18 ‘‘(2) CONSOLIDATION LOANS.—In the case of 

19 any consolidation loan made under this part, interest 

20 shall not accrue pursuant to this subsection only on 

21 such portion of such loan as was used to repay a 

22 loan made under this part or a loan made under 

23 part D for which the first disbursement was made 

24 on or after October 1, 2008, and before July 1, 

25 2019. 


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1 ‘‘(3) ELIGIBLE MILITARY BORROWER.—In this 

2 subsection, the term ‘eligible military borrower’ 

3 means an individual who— 

4 ‘‘(A)(i) is serving on active duty during a 

5 war or other military operation or national 

6 emergency; or 

7 ‘‘(ii) is performing qualifying National 

8 Guard duty during a war or other military op9 eration or national emergency; and 

10 ‘‘(B) is serving in an area of hostilities in 

11 which service qualifies for special pay under 

12 section 310 of title 37, United States Code. 

13 ‘‘(4) LIMITATION.—An individual who qualifies 

14 as an eligible military borrower under this sub15 section may receive the benefit of this subsection for 

16 not more than 60 months. 

17 ‘‘SEC. 466. REPAYMENT. 

18 ‘‘(a) REPAYMENT PERIOD; COMMENCEMENT OF RE19 PAYMENT.— 

20 ‘‘(1) REPAYMENT PERIOD.— 

21 ‘‘(A) IN GENERAL.—In the case of a Fed22 eral ONE Loan— 

23 ‘‘(i) subject to clause (ii), the repay24 ment period shall— 


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1 ‘‘(I) exclude any period of au2 thorized deferment under section 

3 469A; and 

4 ‘‘(II) begin the day after 6 

5 months after the date the student 

6 ceases to carry at least one-half the 

7 normal full-time academic workload 

8 (as determined by the institution); 

9 and 

10 ‘‘(ii) interest shall begin to accrue or 

11 be paid by the borrower on the day the 

12 loan is disbursed. 

13 ‘‘(B) CONSOLIDATION AND PARENT

14 LOANS.—In the case of a Federal ONE Consoli15 dation Loan or a Federal ONE Parent Loan, 

16 the repayment period shall— 

17 ‘‘(i) exclude any period of authorized 

18 deferment; and 

19 ‘‘(ii) begin— 

20 ‘‘(I) on the day the loan is dis21 bursed; or 

22 ‘‘(II) if the loan is disbursed in 

23 multiple installments, on the day of 

24 the last such disbursement. 


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1 ‘‘(C) ACTIVE DUTY EXCLUSION.—There 

2 shall be excluded from the 6-month period that 

3 begins on the date on which a student ceases to 

4 carry at least one-half the normal full-time aca5 demic workload as described in subparagraph 

6 (A) any period not to exceed 3 years during 

7 which a borrower who is a member of a reserve 

8 component of the Armed Forces named in sec9 tion 10101 of title 10, United States Code, is 

10 called or ordered to active duty for a period of 

11 more than 30 days (as defined in section 

12 101(d)(2) of such title). Such period of exclu13 sion shall include the period necessary to re14 sume enrollment at the borrower’s next avail15 able regular enrollment period. 

16 ‘‘(2) PAYMENT OF PRINCIPAL AND INTEREST.— 

17 ‘‘(A) COMMENCEMENT OF REPAYMENT.— 

18 Repayment of principal on loans made under 

19 this part shall begin at the beginning of the re20 payment period described in paragraph (1). 

21 ‘‘(B) CAPITALIZATION OF INTEREST.— 

22 ‘‘(i) IN GENERAL.—Interest on loans 

23 made under this part for which payments 

24 of principal are not required during the 6- 

25 month period described in paragraph 


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1 (1)(A)(i)(II) or for which payments are de2 ferred under section 469A shall— 

3 ‘‘(I) be paid monthly or quar4 terly; or 

5 ‘‘(II) be added to the principal 

6 amount of the loan only— 

7 ‘‘(aa) when the loan enters 

8 repayment; 

9 ‘‘(bb) at the expiration of a 

10 the 6-month period described in 

11 paragraph (1)(A)(i)(II); 

12 ‘‘(cc) at the expiration of a 

13 period of deferment, unless other14 wise exempted; or 

15 ‘‘(dd) when the borrower de16 faults. 

17 ‘‘(ii) MAXIMUM AGGREGATE LIMIT.— 

18 Interest capitalized shall not be deemed to 

19 exceed the amount equal to the maximum 

20 aggregate limit of the loan under section 

21 465(b). 

22 ‘‘(C) NOTICE.—Not less than 60 days, and 

23 again not less than 30 days, prior to the antici24 pated commencement of the repayment period 


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1 for a Federal ONE Loan, the Secretary shall 

2 provide notice to the borrower— 

3 ‘‘(i) that interest will accrue before re4 payment begins; 

5 ‘‘(ii) that interest will be added to the 

6 principal amount of the loan in the cases 

7 described in subparagraph (B)(i)(II); and 

8 ‘‘(iii) of the borrower’s option to begin 

9 loan repayment prior to such repayment 

10 period. 

11 ‘‘(b) REPAYMENT AMOUNT.— 

12 ‘‘(1) IN GENERAL.—The total of the payments 

13 by a borrower, except as otherwise provided by an 

14 income-based repayment plan under subsection (d), 

15 during any year of any repayment period with re16 spect to the aggregate amount of all loans made 

17 under this part to the borrower shall not (unless the 

18 borrower and the Secretary otherwise agree), be less 

19 than $600 or the balance of all such loans (together 

20 with interest thereon), whichever amount is less (but 

21 in no instance less than the amount of interest due 

22 and payable, notwithstanding any repayment plan 

23 described in subsection (c)). 

24 ‘‘(2) AMORTIZATION.— 


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1 ‘‘(A) INTEREST RATE.—The amount of the 

2 periodic payment and the repayment schedule 

3 for a loan made under this part shall be estab4 lished by assuming an interest rate equal to the 

5 applicable rate of interest at the time of the 

6 first disbursement of the loan. 

7 ‘‘(B) ADJUSTMENT TO REPAYMENT

8 AMOUNT.—The note or other written evidence 

9 of a loan under this part shall require that the 

10 amount of the periodic payment will be adjusted 

11 annually in order to reflect adjustments in— 

12 ‘‘(i) interest rates occurring as a con13 sequence of variable rate loans under parts 

14 B or D paid in conjunction with Federal 

15 ONE Loans under subsection (d)(1)(B)(i); 

16 or 

17 ‘‘(ii) principal occurring as a con18 sequence of interest capitalization under 

19 subsection (a)(2)(B). 

20 ‘‘(c) REPAYMENT PLANS.— 

21 ‘‘(1) DESIGN AND SELECTION.—Not more than 

22 6 months prior to the date on which a borrower’s 

23 first payment on a loan made under this part is due, 

24 the Secretary shall offer the borrower two plans for 

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1 terest on the loan. The borrower shall be entitled to 

2 accelerate, without penalty, repayment on the bor3 rower’s loans under this part. The borrower may 

4 choose— 

5 ‘‘(A) a standard repayment plan with a 

6 fixed monthly repayment amount paid over a 

7 fixed period of time, not to exceed 10 years; or 

8 ‘‘(B) an income-based repayment plan 

9 under subsection (d). 

10 ‘‘(2) SELECTION BY SECRETARY.—If a bor11 rower of a loan made under this part does not select 

12 a repayment plan described in paragraph (1), the 

13 Secretary shall provide the borrower with the repay14 ment plan described in paragraph (1)(A). 

15 ‘‘(3) CHANGES IN SELECTIONS.— 

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graph (B), the borrower of a loan made under 

18 this part may change the borrower’s selection of 

19 a repayment plan under paragraph (1), or the 

20 Secretary’s selection of a plan for the borrower 

21 under paragraph (2), as the case may be, under 

22 such terms and conditions as may be estab23 lished by the Secretary, except that the Sec24 retary may not establish any terms or condi25 tions with respect to whether a borrower may 


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1 change the borrower’s repayment plan. Nothing 

2 in this subsection shall prohibit the Secretary 

3 from encouraging struggling borrowers from en4 rolling in the income-driven repayment plan de5 scribed in section 466(d). 

6 ‘‘(B) SAME REPAYMENT PLAN RE7 QUIRED.—All loans made under this part to a 

8 borrower shall be repaid under the same repay9 ment plan under paragraph (1), except that the 

10 borrower may repay a Federal ONE Parent 

11 Loan or an Excepted Federal ONE Consolida12 tion Loan (as defined in subsection (d)(5)) sep13 arately from other loans made under this part 

14 to the borrower. 

15 ‘‘(4) REPAYMENT AFTER DEFAULT.—The Sec16 retary may require any borrower who has defaulted 

17 on a loan made under this part to— 

18 ‘‘(A) pay all reasonable collection costs as19 sociated with such loan; and 

20 ‘‘(B) repay the loan pursuant to the in21 come-based repayment plan under subsection 

22 (d). 

23 ‘‘(5) REPAYMENT PERIOD.—For purposes of 

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1 section, such period shall commence at the time the 

2 first payment of principal is due from the borrower. 

3 ‘‘(6) INSTALLMENTS.—Repayment of loans 

4 under this part shall be in installments in accord5 ance with the repayment plan selected under para6 graph (1) and commencing at the beginning of the 

7 repayment period determined under paragraph (5). 

8 ‘‘(d) INCOME-BASED REPAYMENT PROGRAM.— 

9 ‘‘(1) IN GENERAL.—Notwithstanding any other 

10 provision of this Act, the Secretary shall carry out 

11 a program under which— 

12 ‘‘(A) a borrower of any loan made under 

13 this part (other than a Federal ONE Parent 

14 Loan or an Excepted Federal ONE Consolida15 tion Loan) may elect to have the borrower’s ag16 gregate monthly payment for all such loans— 

17 ‘‘(i) not to exceed the result obtained 

18 by dividing by 12, 15 percent of the result 

19 obtained by calculating, on at least an an20 nual basis, the amount by which— 

21 ‘‘(I) the adjusted gross income of 

22 the borrower or, if the borrower is 

23 married and files a Federal income 

24 tax return jointly with or separately 

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1 justed gross income of the borrower 

2 and the borrower’s spouse, exceeds 

3 ‘‘(II) 150 percent of the poverty 

4 line applicable to the borrower’s fam5 ily size as determined under section 

6 673(2) of the Community Services 

7 Block Grant Act (42 U.S.C. 9902(2)); 

8 and 

9 ‘‘(ii) not to be less than $25; 

10 ‘‘(B) the Secretary adjusts the calculated 

11 monthly payment under subparagraph (A), if— 

12 ‘‘(i) in addition to the loans described 

13 in subparagraph (A), the borrower has an 

14 outstanding loan made under part B or D 

15 (other than an excepted parent loan or an 

16 excepted consolidation loan, as such terms 

17 are defined in section 493C(a)), by deter18 mining the borrower’s adjusted monthly 

19 payment by multiplying— 

20 ‘‘(I) the calculated monthly pay21 ment, by 

22 ‘‘(II) the percentage of the total 

23 outstanding principal amount of the 

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1 ter preceding subclause (I), which are 

2 described in subparagraph (A); 

3 ‘‘(ii) the borrower and borrower’s 

4 spouse have loans described in subpara5 graph (A) and outstanding loans under 

6 part B or D (other than an excepted par7 ent loan or an excepted consolidation loan, 

8 as such terms are defined in section 

9 493C(a)) and have filed a joint or separate 

10 Federal income tax return, in which case 

11 the Secretary determines— 

12 ‘‘(I) each borrower’s percentage 

13 of the couple’s total outstanding 

14 amount of principal on such loans; 

15 ‘‘(II) the adjusted monthly pay16 ment for each borrower by multiplying 

17 the borrower’s calculated monthly 

18 payment by the percentage deter19 mined under subclause (I) applicable 

20 to the borrower; and 

21 ‘‘(III) if the borrower’s loans are 

22 held by multiple holders, the bor23 rower’s adjusted monthly payment for 

24 loans described in subparagraph (A) 

25 by multiplying the adjusted monthly 


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1 payment determined under subclause 

2 (II) by the percentage of the total 

3 outstanding principal amount of the 

4 borrower’s loans described in the mat5 ter preceding subclause (I), which are 

6 described in subparagraph (A); 

7 ‘‘(C) the holder of such a loan shall apply 

8 the borrower’s monthly payment under this sub9 section first toward interest due on the loan, 

10 next toward any fees due on the loan, and then 

11 toward the principal of the loan; 

12 ‘‘(D) any principal due and not paid under 

13 subparagraph (C) shall be deferred; 

14 ‘‘(E) any interest due and not paid under 

15 subparagraph (C) shall be capitalized, at the 

16 time the borrower— 

17 ‘‘(i) ends the election to make income18 based repayment under this subsection; or 

19 ‘‘(ii) begins making payments of not 

20 less than the amount specified in subpara21 graph (G)(i); 

22 ‘‘(F) the amount of time the borrower 

23 makes monthly payments under subparagraph 

24 (A) may exceed 10 years; 


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1 ‘‘(G) if the borrower no longer wishes to 

2 continue the election under this subsection, 

3 then— 

4 ‘‘(i) the maximum monthly payment 

5 required to be paid for all loans made to 

6 the borrower under this part (other than a 

7 Federal ONE Parent Loan or an Excepted 

8 Federal ONE Consolidation Loan) shall 

9 not exceed the monthly amount calculated 

10 under subsection (c)(1)(A), based on a 10- 

11 year repayment period, when the borrower 

12 first made the election described in this 

13 subsection; and 

14 ‘‘(ii) the amount of time the borrower 

15 is permitted to repay such loans may ex16 ceed 10 years; 

17 ‘‘(H) the Secretary shall cancel any out18 standing balance (other than an amount equal 

19 to the interest accrued during any period of in20 school deferment under subparagraph (A), (B), 

21 or (F) of section 469A(b)(1)) due on all loans 

22 made under this part (other than a Federal 

23 ONE Parent Loan or an Excepted Federal 

24 ONE Consolidation Loan) to a borrower— 


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1 ‘‘(i) who, at any time, elected to par2 ticipate in income-based repayment under 

3 subparagraph (A); 

4 ‘‘(ii) whose final monthly payment for 

5 such loans prior to the loan cancellation 

6 under this subparagraph was made under 

7 such income-based repayment; and 

8 ‘‘(iii) who has repaid, pursuant to in9 come-based repayment under subparagraph 

10 (A), a standard repayment plan under sub11 section (c)(1)(A), or a combination— 

12 ‘‘(I) an amount of principal and 

13 interest on such loans that is equal to 

14 the total amount of principal and in15 terest that the borrower would have 

16 repaid under a standard repayment 

17 plan under subsection (c)(1)(A), based 

18 on a 10-year repayment period, when 

19 the borrower entered repayment on 

20 such loans; and 

21 ‘‘(II) the amount of interest that 

22 accrues during a period of deferment 

23 described in section 469A prior to the 

24 completion of the repayment period 

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1 tion of such loans remaining to be re2 paid in accordance with such sub3 clause; and 

4 ‘‘(I) a borrower who is repaying a loan 

5 made under this part pursuant to income-based 

6 repayment under subparagraph (A) may elect, 

7 at any time during the 10-year period beginning 

8 on the date the borrower entered repayment on 

9 the loan, to terminate repayment pursuant to 

10 such income-based repayment and repay such 

11 loan under the standard repayment plan. 

12 ‘‘(2) ELIGIBILITY DETERMINATIONS.— 

13 ‘‘(A) IN GENERAL.—The Secretary shall 

14 establish procedures for annual verification of a 

15 borrower’s annual income and the annual 

16 amount due on the total amount of loans made 

17 under this part (other than a Federal ONE 

18 Parent Loan or an Excepted Federal ONE 

19 Consolidation Loan), and such other procedures 

20 as are necessary to implement effectively in21 come-based repayment under this subsection, 

22 including the procedures established with re23 spect to section 493C. 

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1 sonably necessary regarding the income of a 

2 borrower (and the borrower’s spouse, if applica3 ble) of a loan made under this part that is, or 

4 may be, repaid pursuant to income-based repay5 ment under this subsection, for the purpose of 

6 determining the annual repayment obligation of 

7 the borrower. The Secretary shall establish pro8 cedures for determining the borrower’s repay9 ment obligation on that loan for such year, and 

10 such other procedures as are necessary to im11 plement effectively the income-based repayment 

12 under this subsection. 

13 ‘‘(C) BORROWER REQUIREMENTS.—A bor14 rower who chooses to repay a loan made under 

15 this part pursuant to income-based repayment 

16 under this subsection, and— 

17 ‘‘(i) for whom adjusted gross income 

18 is available and reasonably reflects the bor19 rower’s current income, shall, to the max20 imum extent practicable, provide to the 

21 Secretary the Federal tax information of 

22 the borrower; and 

23 ‘‘(ii) for whom adjusted gross income 

24 is unavailable or does not reasonably re25 flect the borrower’s current income, shall 


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1 provide to the Secretary other documenta2 tion of income satisfactory to the Sec3 retary, which documentation the Secretary 

4 may use to determine an appropriate re5 payment schedule. 

6 ‘‘(3) NOTIFICATION TO BORROWERS.—The Sec7 retary shall establish procedures under which a bor8 rower of a loan made under this part who chooses 

9 to repay such loan pursuant to income-based repay10 ment under this subsection is notified of the terms 

11 and conditions of such plan, including notification 

12 that if a borrower considers that special cir13 cumstances, such as a loss of employment by the 

14 borrower or the borrower’s spouse, warrant an ad15 justment in the borrower’s loan repayment as deter16 mined using the borrower’s Federal tax return infor17 mation, or the alternative documentation described 

18 in paragraph (2)(C), the borrower may contact the 

19 Secretary, who shall determine whether such adjust20 ment is appropriate, in accordance with criteria es21 tablished by the Secretary. 

22 ‘‘(4) REDUCED PAYMENT PERIODS.— 

23 ‘‘(A) IN GENERAL.—The Secretary shall 

24 authorize borrowers meeting the criteria under 

25 subparagraph (B) to make monthly payments 


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1 of $5 for a period not in excess of 3 years, ex2 cept that— 

3 ‘‘(i) for purposes of subparagraph 

4 (B)(i), the Secretary may authorize re5 duced payments in 6-month increments, 

6 beginning on the date the borrower pro7 vides to the Secretary the evidence de8 scribed in subclause (I) or (II) of subpara9 graph (B)(i); and 

10 ‘‘(ii) for purposes of subparagraph 

11 (B)(ii), the Secretary may authorize re12 duced payments in 3-month increments, 

13 beginning on the date the borrower pro14 vides to the Secretary the evidence de15 scribed in subparagraph (B)(ii)(I). 

16 ‘‘(B) ELIGIBILITY DETERMINATIONS.—The 

17 Secretary shall authorize borrowers to make re18 duced payments under this paragraph in the 

19 following circumstances: 

20 ‘‘(i) In a case of borrower who is seek21 ing and unable to find full-time employ22 ment, as demonstrated by providing to the 

23 Secretary— 


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1 ‘‘(I) evidence of the borrower’s 

2 eligibility for unemployment benefits 

3 to the Secretary; or 

4 ‘‘(II) a written certification or an 

5 equivalent that— 

6 ‘‘(aa) the borrower has reg7 istered with a public or private 

8 employment agency that is avail9 able to the borrower within a 50- 

10 mile radius of the borrower’s 

11 home address; and 

12 ‘‘(bb) in the case of a bor13 rower that has been granted a re14 quest under this subparagraph, 

15 the borrower has made at least 

16 six diligent attempts during the 

17 preceding six-month period to se18 cure full-time employment. 

19 ‘‘(ii) The Secretary determines that, 

20 due to high medical expenses, the $25 

21 monthly payment the borrower would oth22 erwise make would be an extreme economic 

23 hardship to the borrower, if— 

24 ‘‘(I) the borrower documents the 

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1 ment is an extreme economic hard2 ship; and 

3 ‘‘(II) the borrower recertifies the 

4 reason for the $5 minimum payment 

5 on a three-month basis. 

6 ‘‘(C) DEFINITION.—For purpose of this 

7 section, the term ‘full-time employment’ means 

8 employment that will provide not less than 30 

9 hours of work a week and is expected to con10 tinue for a period of not less than 3 months. 

11 ‘‘(5) DEFINITIONS.—In this subsection: 

12 ‘‘(A) ADJUSTED GROSS INCOME.—The 

13 term ‘adjusted gross income’ has the meaning 

14 given the term in section 62 of the Internal 

15 Revenue Code of 1986. 

16 ‘‘(B) EXCEPTED FEDERAL ONE CONSOLI17 DATION LOAN.—The term ‘Excepted Federal 

18 ONE Consolidation Loan’ means a Federal 

19 ONE Consolidation Loan if the proceeds of 

20 such loan were used to discharge the liability 

21 on— 

22 ‘‘(i) a Federal ONE Parent Loan; 

23 ‘‘(ii) a Federal Direct PLUS Loan, or 

24 a loan under section 428B, that is made, 


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1 insured, or guaranteed on behalf of a de2 pendent student; 

3 ‘‘(iii) an excepted consolidation loan 

4 (defined in section 493C); or 

5 ‘‘(iv) a Federal ONE Consolidation 

6 loan that was used to discharge the liabil7 ity on a loan described in clause (i), (ii), 

8 or (iii). 

9 ‘‘(e) RULES OF CONSTRUCTION.—Nothing in this 

10 section shall be construed to authorize, with respect to 

11 loans made under this part— 

12 ‘‘(1) eligibility for a repayment plan that is not 

13 described in subsection (c)(1) or section 468(c); or 

14 ‘‘(2) the Secretary to— 

15 ‘‘(A) carry out a repayment plan, which is 

16 not described in subsection (c)(1) or section 

17 468(c); or 

18 ‘‘(B) modify a repayment plan that is de19 scribed in subsection (c)(1) or section 468(c) in 

20 a manner that results in any net cost to the 

21 Federal Government, as determined jointly by 

22 the Secretary, the Secretary of the Treasury, 

23 and the Director of the Office of Management 

24 and Budget. 


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1 ‘‘SEC. 467. FEDERAL ONE PARENT LOANS. 

2 ‘‘(a) AUTHORITY TO BORROW.— 

3 ‘‘(1) AUTHORITY AND ELIGIBILITY.—The par4 ent of a dependent student shall be eligible to bor5 row funds under this section in amounts specified in 

6 subsection (b), if— 

7 ‘‘(A) the parent is borrowing to pay for the 

8 educational costs of a dependent student who 

9 meets the requirements for an eligible student 

10 under section 484(a); 

11 ‘‘(B) the parent meets the applicable re12 quirements concerning defaults and overpay13 ments that apply to a student borrower; 

14 ‘‘(C) the parent complies with the require15 ments for submission of a statement of edu16 cational purpose that apply to a student bor17 rower under section 484(a)(4)(A) (other than 

18 the completion of a statement of selective serv19 ice registration status); 

20 ‘‘(D) the parent meets the requirements 

21 that apply to a student under section 437(a); 

22 ‘‘(E) the parent— 

23 ‘‘(i) does not have an adverse credit 

24 history; or 

25 ‘‘(ii) has an adverse credit history, but 

26 has— 


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1 ‘‘(I) obtained an endorser who 

2 does not have an adverse credit his3 tory or documented to the satisfaction 

4 of the Secretary that extenuating cir5 cumstances exist in accordance with 

6 paragraph (4)(D); and 

7 ‘‘(II) completed Federal ONE 

8 Parent Loan counseling offered by the 

9 Secretary; and 

10 ‘‘(F) in the case of a parent who has been 

11 convicted of, or has pled nolo contendere or 

12 guilty to, a crime involving fraud in obtaining 

13 funds under this title, such parent has com14 pleted the repayment of such funds to the Sec15 retary, or to the holder in the case of a loan 

16 under this title obtained by fraud. 

17 ‘‘(2) TERMS, CONDITIONS, AND BENEFITS.— 

18 Except as provided in subsections (c), (d), and (e), 

19 loans made under this section shall have the same 

20 terms, conditions, and benefits as all other loans 

21 made under this part. 

22 ‘‘(3) PARENT BORROWERS.— 

23 ‘‘(A) DEFINITION.—For purposes of this 

24 section, the term ‘parent’ includes a student’s 

25 biological or adoptive mother or father or the 


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1 student’s stepparent, if the biological parent or 

2 adoptive mother or father has remarried at the 

3 time of filing the common financial reporting 

4 form under section 483(a), and that spouse’s 

5 income and assets would have been taken into 

6 account when calculating the student’s expected 

7 family contribution. 

8 ‘‘(B) CLARIFICATION.—Whenever nec9 essary to carry out the provisions of this sec10 tion, the terms ‘student’ and ‘borrower’ as used 

11 in this part shall include a parent borrower 

12 under this section. 

13 ‘‘(4) ADVERSE CREDIT HISTORY DEFINITIONS

14 AND ADJUSTMENTS.— 

15 ‘‘(A) DEFINITIONS.—For purposes of this 

16 section: 

17 ‘‘(i) IN GENERAL.—The term ‘adverse 

18 credit history’, when used with respect to 

19 a borrower, means that the borrower— 

20 ‘‘(I) has one or more debts with 

21 a total combined outstanding balance 

22 equal to or greater than $2,085, as 

23 may be adjusted by the Secretary in 

24 accordance with subparagraph (B), 

25 that— 


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1 ‘‘(aa) are 90 or more days 

2 delinquent as of the date of the 

3 credit report; or 

4 ‘‘(bb) have been placed in 

5 collection or charged off during 

6 the two years preceding the date 

7 of the credit report; or 

8 ‘‘(II) has been the subject of a 

9 default determination, bankruptcy dis10 charge, foreclosure, repossession, tax 

11 lien, wage garnishment, or write-off of 

12 a debt under this title during the 5 

13 years preceding the date of the credit 

14 report. 

15 ‘‘(ii) CHARGED OFF.—The term 

16 ‘charged off’ means a debt that a creditor 

17 has written off as a loss, but that is still 

18 subject to collection action. 

19 ‘‘(iii) IN COLLECTION.—The term ‘in 

20 collection’ means a debt that has been 

21 placed with a collection agency by a cred22 itor or that is subject to more intensive ef23 forts by a creditor to recover amounts 

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1 tinely made as part of the creditor’s billing 

2 procedures. 

3 ‘‘(B) ADJUSTMENTS.— 

4 ‘‘(i) IN GENERAL.—In a case of a bor5 rower with a debt amount described in 

6 subparagraph (A)(i), the Secretary shall 

7 increase such debt amount, or its inflation8 adjusted equivalent, if the Secretary deter9 mines that an inflation adjustment to such 

10 debt amount would result in an increase of 

11 $100 or more to such debt amount. 

12 ‘‘(ii) INFLATION ADJUSTMENT.—In 

13 making the inflation adjustment under 

14 clause (i), the Secretary shall— 

15 ‘‘(I) use the annual average per16 cent change of the All Items Con17 sumer Price Index for All Urban Con18 sumers, before seasonal adjustment, 

19 as the measurement of inflation; and 

20 ‘‘(II) if the adjustment calculated 

21 under subclause (I) is equal to or 

22 greater than $100— 

23 ‘‘(aa) add the adjustment to 

24 the debt amount, or its inflation25 adjusted equivalent; and 


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1 ‘‘(bb) round up to the near2 est $5. 

3 ‘‘(iii) PUBLICATION.—The Secretary 

4 shall publish a notice in the Federal Reg5 ister announcing any increase to the 

6 threshold amount specified in subpara7 graph (A)(i)(I). 

8 ‘‘(C) TREATMENT OF ABSENCE OF CREDIT

9 HISTORY.—For purposes of this section, the 

10 Secretary shall not consider the absence of a 

11 credit history as an adverse credit history and 

12 shall not deny a Federal ONE Parent loan on 

13 that basis. 

14 ‘‘(D) EXTENUATING CIRCUMSTANCES.— 

15 For purposes of this section, the Secretary may 

16 determine that extenuating circumstances exist 

17 based on documentation that may include— 

18 ‘‘(i) an updated credit report for the 

19 parent; or 

20 ‘‘(ii) a statement from the creditor 

21 that the parent has repaid or made satis22 factory arrangements to repay a debt that 

23 was considered in determining that the 

24 parent has an adverse credit history 


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1 ‘‘(b) LIMITATION BASED ON NEED.—Any loan under 

2 this section may be counted as part of the expected family 

3 contribution in the determination of need under this title, 

4 but no loan may be made to any parent under this section 

5 for any academic year in excess of the lesser of— 

6 ‘‘(1) the student’s estimated cost of attendance 

7 minus the student’s estimated financial assistance 

8 (as calculated under section 465(b)(1)(A)); or 

9 ‘‘(2) the established annual loan limits for such 

10 loan under section 465(b). 

11 ‘‘(c) PARENT LOAN DISBURSEMENT.—All loans 

12 made under this section shall be disbursed in accordance 

13 with the requirements of section 465(a) and shall be dis14 bursed by— 

15 ‘‘(1) an electronic transfer of funds from the 

16 lender to the eligible institution; or 

17 ‘‘(2) a check copayable to the eligible institution 

18 and the parent borrower. 

19 ‘‘(d) PAYMENT OF PRINCIPAL AND INTEREST.— 

20 ‘‘(1) COMMENCEMENT OF REPAYMENT.—Re21 payment of principal on loans made under this sec22 tion shall commence not later than 60 days after the 

23 date such loan is disbursed by the Secretary, subject 

24 to deferral— 


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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 

10 maximum repayment period for a loan made under 

11 this section shall be a 10-year period beginning on 

12 the commencement of such period described in para13 graph (1). 

14 ‘‘(3) CAPITALIZATION OF INTEREST.—Interest 

15 on loans made under this section for which pay16 ments of principal are deferred pursuant to para17 graph (1) shall, if agreed upon by the borrower and 

18 the Secretary— 

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.—Inter24 est on loans made pursuant to this section shall be 


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1 at the 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

6 SOCIAL SECURITY NUMBER.—A parent who wishes to 

7 borrow funds under this section shall be subject to 

8 verification of the parent’s— 

9 ‘‘(1) immigration status in the same manner as 

10 immigration status is verified for students under 

11 section 484(g); and 

12 ‘‘(2) Social Security number in the same man13 ner as Social Security numbers are verified for stu14 dents under section 484(p). 

15 ‘‘(f) DESIGNATION.—For purposes of this Act, loans 

16 described in this section shall be known as ‘Federal ONE 

17 Parent Loans’. 

18 ‘‘SEC. 468. FEDERAL ONE CONSOLIDATION LOANS. 

19 ‘‘(a) TERMS AND CONDITIONS.—In making consoli20 dation 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 ac23 cordance with reasonable and prudent business prac24 tices, for each loan being consolidated, that the 

25 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 

7 to repayment, in accordance with subsection (c), ex8 cept as otherwise provided under subsections (f) and 

9 (g) of 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 

15 principal and accrued unpaid interest and late 

16 charges of all eligible student loans received by the 

17 eligible borrower which are selected by the borrower 

18 for consolidation; 

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 

22 liability on such loans; 

23 ‘‘(5) disclose to a prospective borrower, in sim24 ple and understandable terms, at the time the SecVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00321 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 retary provides an application for a consolidation 

2 loan— 

3 ‘‘(A) with respect to a loan made, insured, 

4 or guaranteed under this part, part B, or part 

5 D, that if a borrower includes such a loan in 

6 the consolidation loan— 

7 ‘‘(i) that the consolidation would re8 sult in a loss of loan benefits; and 

9 ‘‘(ii) which specific loan benefits the 

10 borrower would lose, including the loss of 

11 eligibility for loan forgiveness (including 

12 loss of eligibility for interest rate forgive13 ness), cancellation, deferment, forbearance, 

14 interest-free periods, or loan repayment 

15 programs that would have been available 

16 for such a loan; and 

17 ‘‘(B) with respect to Federal Perkins 

18 Loans under this part (as this part was in ef19 fect on the day before the date of enactment of 

20 the PROSPER Act)— 

21 ‘‘(i) that if a borrower includes such a 

22 Federal Perkins Loan in the consolidation 

23 loan, the borrower will lose all interest-free 

24 periods that would have been available for 

25 the Federal Perkins Loan, such as— 


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1 ‘‘(I) the periods during which no 

2 interest accrues on such loan while 

3 the borrower is enrolled in an institu4 tion of higher education at least half5 time; 

6 ‘‘(II) the grace period under sec7 tion 464(c)(1)(A) (as such section was 

8 in effect on the day before the date of 

9 enactment of the PROSPER Act); 

10 and 

11 ‘‘(III) the periods during which 

12 the borrower’s student loan repay13 ments are deferred under section 

14 464(c)(2) (as such section was in ef15 fect on the day before the date of en16 actment of the PROSPER Act); and 

17 ‘‘(ii) that if a borrower includes such 

18 a Federal Perkins Loan in the consolida19 tion loan, the borrower will no longer be el20 igible for cancellation of part or all of the 

21 Federal Perkins Loan under section 465(a) 

22 (as such section was in effect on the day 

23 before the date of enactment of the PROS24 PER Act); and 


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1 ‘‘(iii) the occupations listed in section 

2 465 that qualify for Federal Perkins Loan 

3 cancellation under section 465(a) (as such 

4 section was in effect on the day before the 

5 date of enactment of the PROSPER Act); 

6 ‘‘(C) the repayment plans that are avail7 able to the borrower under section (c); 

8 ‘‘(D) the options of the borrower to prepay 

9 the consolidation loan, to pay such loan on a 

10 shorter schedule, and to change repayment 

11 plans; 

12 ‘‘(E) the consequences of default on the 

13 consolidation loan; and 

14 ‘‘(F) that by applying for a consolidation 

15 loan, the borrower is not obligated to agree to 

16 take the consolidation loan; and 

17 ‘‘(6) not make such a loan to an eligible bor18 rower, unless— 

19 ‘‘(A) the borrower has agreed to notify the 

20 Secretary promptly concerning any change of 

21 address; and 

22 ‘‘(B) the loan is evidenced by a note or 

23 other written agreement which— 

24 ‘‘(i) is made without security and 

25 without endorsement, except that if— 


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1 ‘‘(I) the borrower is a minor and 

2 such note or other written agreement 

3 executed by him or her would not, 

4 under applicable law, create a binding 

5 obligation, endorsement may be re6 quired; or 

7 ‘‘(II) the borrower desires to in8 clude in the consolidation loan, a Fed9 eral ONE Parent Loan, or a loan 

10 under section 428B, or a Federal Di11 rect PLUS loan, made on behalf of a 

12 dependent student, endorsement shall 

13 be required; 

14 ‘‘(ii) provides for the payment of in15 terest and the repayment of principal as 

16 described in paragraph (2); 

17 ‘‘(iii) provides that during any period 

18 for which the borrower would be eligible 

19 for a deferral under section 469A, which 

20 period shall not be included in determining 

21 the repayment schedule pursuant to sub22 section (c)— 

23 ‘‘(I) periodic installments of prin24 cipal need not be paid, but interest 


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1 shall accrue and be paid by the bor2 rower or be capitalized; and 

3 ‘‘(II) except as otherwise pro4 vided under subsections (f) and (g) of 

5 section 465, the Secretary shall not 

6 pay interest on any portion of the 

7 consolidation loan, without regard to 

8 whether the portion repays Federal 

9 Stafford Loans for which the student 

10 borrower received an interest subsidy 

11 under section 428 or Federal Direct 

12 Stafford Loans for which the bor13 rower received an interest subsidy 

14 under section 455; 

15 ‘‘(iv) entitles the borrower to accel16 erate without penalty repayment of the 

17 whole or any part of the loan; and 

18 ‘‘(v) contains a notice of the system of 

19 disclosure concerning such loan to con20 sumer reporting agencies under section 

21 430A, and provides that the Secretary on 

22 request of the borrower will provide infor23 mation on the repayment status of the 

24 note to such consumer reporting agencies. 


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1 ‘‘(b) NONDISCRIMINATION IN LOAN CONSOLIDA2 TION.—The Secretary shall not discriminate against any 

3 borrower seeking a loan under this section— 

4 ‘‘(1) based on the number or type of eligible 

5 student loans the borrower seeks to consolidate; 

6 ‘‘(2) based on the type or category of institu7 tion of higher education that the borrower attended; 

8 ‘‘(3) based on the interest rate to be charged to 

9 the borrower with respect to the consolidation loan; 

10 or 

11 ‘‘(4) with respect to the types of repayment 

12 schedules offered to such borrower. 

13 ‘‘(c) PAYMENT OF PRINCIPAL AND INTEREST.— 

14 ‘‘(1) REPAYMENT SCHEDULES.— 

15 ‘‘(A) ESTABLISHMENT.— 

16 ‘‘(i) IN GENERAL.—Notwithstanding 

17 any other provision of this part, the Sec18 retary shall— 

19 ‘‘(I) establish repayment terms 

20 as will promote the objectives of this 

21 section; and 

22 ‘‘(II) provide a borrower with the 

23 option of the standard-repayment plan 

24 or income-based repayment plan 


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1 under section 466(d) in lieu of such 

2 repayment terms. 

3 ‘‘(ii) SCHEDULE TERMS.—The repay4 ment terms established under clause (i)(I) 

5 shall require that if the sum of the consoli6 dation loan and the amount outstanding on 

7 other eligible student loans to the indi8 vidual— 

9 ‘‘(I) is less than $7,500, then 

10 such consolidation loan shall be repaid 

11 in not more than 10 years; 

12 ‘‘(II) is equal to or greater than 

13 $7,500 but less than $10,000, then 

14 such consolidation loan shall be repaid 

15 in not more than 12 years; 

16 ‘‘(III) is equal to or greater than 

17 $10,000 but less than $20,000, then 

18 such consolidation loan shall be repaid 

19 in not more than 15 years; 

20 ‘‘(IV) is equal to or greater than 

21 $20,000 but less than $40,000, then 

22 such consolidation loan shall be repaid 

23 in not more than 20 years; 

24 ‘‘(V) is equal to or greater than 

25 $40,000 but less than $60,000, then 


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1 such consolidation loan shall be repaid 

2 in not more than 25 years; or 

3 ‘‘(VI) is equal to or greater than 

4 $60,000, then such consolidation loan 

5 shall be repaid in not more than 30 

6 years. 

7 ‘‘(B) LIMITATION.—The amount out8 standing on other eligible student loans which 

9 may be counted for the purpose of subpara10 graph (A) may not exceed the amount of the 

11 consolidation loan. 

12 ‘‘(2) ADDITIONAL REPAYMENT REQUIRE13 MENTS.—Notwithstanding paragraph (1)— 

14 ‘‘(A) except in the case of an income-based 

15 repayment schedule under section 466(d), a re16 payment schedule established with respect to a 

17 consolidation loan shall require that the min18 imum installment payment be an amount equal 

19 to not less than the accrued unpaid interest; 

20 and 

21 ‘‘(B) an income-based repayment schedule 

22 under section 466(d) shall not be available to a 

23 consolidation loan borrower who— 


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1 ‘‘(i) used the proceeds of a Federal 

2 ONE Consolidation loan to discharge the 

3 liability— 

4 ‘‘(I) on a loan under section 

5 428B made on behalf of a dependent 

6 student; 

7 ‘‘(II) a Federal Direct PLUS 

8 loan made on behalf of a dependent 

9 student; 

10 ‘‘(III) a Federal ONE Parent 

11 loan; or 

12 ‘‘(IV) an excepted consolidation 

13 loan (defined in section 493C); or 

14 ‘‘(ii) used the proceeds of a subse15 quent Federal ONE Consolidation loan to 

16 discharge the liability on a Federal ONE 

17 Consolidation loan described in clause (i). 

18 ‘‘(3) COMMENCEMENT OF REPAYMENT.—Re19 payment of a consolidation loan shall commence 

20 within 60 days after all holders have, pursuant to 

21 subsection (a)(4), discharged the liability of the bor22 rower on the loans selected for consolidation. 

23 ‘‘(4) INTEREST RATE.—A consolidation loan 

24 made under this section shall bear interest at an an25 nual rate described in section 465(c)(4). 


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1 ‘‘(d) INSURANCE RULE.—Any insurance premium 

2 paid by the borrower under subpart I of part A of title 

3 VII of the Public Health Service Act with respect to a 

4 loan made under that subpart and consolidated under this 

5 section shall be retained by the student loan insurance ac6 count established under section 710 of the Public Health 

7 Service Act. 

8 ‘‘(e) DEFINITIONS.—For the purpose of this section: 

9 ‘‘(1) ELIGIBLE BORROWER.— 

10 ‘‘(A) IN GENERAL.—The term ‘eligible bor11 rower’ means a borrower who— 

12 ‘‘(i) is not subject to a judgment se13 cured through litigation with respect to a 

14 loan under this title or to an order for 

15 wage garnishment under section 488A; and 

16 ‘‘(ii) at the time of application for a 

17 consolidation loan— 

18 ‘‘(I) is in repayment status as de19 termined under section 466(a)(1); 

20 ‘‘(II) is in a grace period pre21 ceding repayment; or 

22 ‘‘(III) is a defaulted borrower 

23 who has made arrangements to repay 

24 the obligation on the defaulted loans 


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1 satisfactory to the holders of the de2 faulted loans. 

3 ‘‘(B) TERMINATION OF STATUS AS AN ELI4 GIBLE BORROWER.—An individual’s status as 

5 an eligible borrower under this section termi6 nates upon receipt of a consolidation loan under 

7 this section, except that— 

8 ‘‘(i) an individual who receives eligible 

9 student loans after the date of receipt of 

10 the consolidation loan may receive a subse11 quent consolidation loan; 

12 ‘‘(ii) loans received prior to the date 

13 of the consolidation loan may be added 

14 during the 180-day period following the 

15 making of the consolidation loan; 

16 ‘‘(iii) loans received following the 

17 making of the consolidation loan may be 

18 added during the 180-day period following 

19 the making of the consolidation loan; 

20 ‘‘(iv) loans received prior to the date 

21 of the first consolidation loan may be 

22 added to a subsequent consolidation loan; 

23 and 

24 ‘‘(v) an individual may obtain a subse25 quent consolidation loan for the purpose— 


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1 ‘‘(I) of income-based repayment 

2 under section 466(d) only if the loan 

3 has been submitted for default aver4 sion or if the loan is already in de5 fault; 

6 ‘‘(II) of using the no accrual of 

7 interest for active duty service mem8 bers benefit offered under section 

9 465(g); or 

10 ‘‘(III) of submitting an applica11 tion under section 469B(d) for a bor12 rower defense to repayment of a loan 

13 made, insured, or guaranteed under 

14 this title. 

15 ‘‘(2) ELIGIBLE STUDENT LOANS.—For the pur16 pose of paragraph (1), the term ‘eligible student 

17 loans’ means loans— 

18 ‘‘(A) made, insured, or guaranteed under 

19 part B, and first disbursed before July 1, 2010, 

20 including loans on which the borrower has de21 faulted (but has made arrangements to repay 

22 the obligation on the defaulted loans satisfac23 tory to the Secretary or guaranty agency, 

24 whichever insured the loans); 


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1 ‘‘(B) made under part D of this title, and 

2 first disbursed before July 1, 2019; 

3 ‘‘(C) made under this part before Sep4 tember 30, 2017; 

5 ‘‘(D) made under this part on or after the 

6 date of enactment of the PROSPER Act; 

7 ‘‘(E) made under subpart II of part A of 

8 title VII of the Public Health Service Act; or 

9 ‘‘(F) made under part E of title VIII of 

10 the Public Health Service Act. 

11 ‘‘(f) DESIGNATION.—For purposes of this Act, loans 

12 described in this section shall be known as ‘Federal ONE 

13 Consolidation Loans’. 

14 ‘‘SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY. 

15 ‘‘(a) IN GENERAL.—A borrower who has one or more 

16 loans in two or more of the categories described in sub17 section (b), and who has not yet entered repayment on 

18 one or more of those loans in any of the categories, may 

19 consolidate all of the loans of the borrower that are de20 scribed in subsection (b) into a Federal ONE Consolida21 tion Loan during the period described in subsection (c). 

22 ‘‘(b) CATEGORIES OF LOANS THAT MAY BE CON23 SOLIDATED.—The categories of loans that may be consoli24 dated under this section are— 


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1 ‘‘(1) loans made under this part before October 

2 1, 2017 and on or after July 1, 2019; 

3 ‘‘(2) loans purchased by the Secretary pursuant 

4 to section 459A; 

5 ‘‘(3) loans made under part B that are held by 

6 an eligible lender, as such term is defined in section 

7 435(d); and 

8 ‘‘(4) loans made under part D. 

9 ‘‘(c) TIME PERIOD IN WHICH LOANS MAY BE CON10 SOLIDATED.—The Secretary may make a Federal ONE 

11 Consolidation Loan under this section to a borrower whose 

12 application for such Federal ONE Consolidation Loan is 

13 received on or after July 1, 2019, and before July 1, 2024. 

14 ‘‘(d) TERMS OF LOANS.—A Federal ONE Consolida15 tion Loan made under this subsection shall have the same 

16 terms and conditions as a Federal ONE Consolidation 

17 Loan made under section 468, except that in determining 

18 the applicable rate of interest on the Federal ONE Con19 solidation Loan made under this section, section 465(c)(4) 

20 shall be applied without rounding the weighted average of 

21 the interest rate on the loans consolidated to the nearest 

22 higher one-eighth of one percent as in such section. 

23 ‘‘SEC. 470. DEFERMENT. 

24 ‘‘(a) EFFECT ON PRINCIPAL AND INTEREST.—A bor25 rower of a loan made under this part who meets the reVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00335 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 quirements described in subsection (b) shall be eligible for 

2 a deferment during which installments of principal need 

3 not be paid and, unless otherwise provided in this sub4 section, interest shall accrue and be capitalized or paid 

5 by the borrower. 

6 ‘‘(b) ELIGIBILITY.—A borrower of a loan made under 

7 this part shall be eligible for a deferment— 

8 ‘‘(1) during any period during which the bor9 rower— 

10 ‘‘(A) is carrying at least one-half the nor11 mal full-time work load for the course of study 

12 that the borrower is pursuing, as determined by 

13 the eligible institution the borrower is attend14 ing; 

15 ‘‘(B) is pursuing a course of study pursu16 ant to— 

17 ‘‘(i) an eligible graduate fellowship 

18 program in accordance with subsection (g); 

19 or 

20 ‘‘(ii) an eligible rehabilitation training 

21 program for individuals with disabilities in 

22 accordance with subsection (i); 

23 ‘‘(C) is serving on active duty during a war 

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1 gency, and for the 180-day period following the 

2 demobilization date for such service; 

3 ‘‘(D) is performing qualifying National 

4 Guard duty during a war or other military op5 eration or national emergency, and for the 180- 

6 day period following the demobilization date for 

7 such service; 

8 ‘‘(E) is a member of the National Guard 

9 who is not eligible for a post-active duty 

10 deferment under section 493D and is engaged 

11 in active State duty for a period of more than 

12 30 consecutive days beginning— 

13 ‘‘(i) the day after 6 months after the 

14 date the student ceases to carry at least 

15 one-half the normal full-time academic 

16 workload (as determined by the institu17 tion); or 

18 ‘‘(ii) the day after the borrower ceases 

19 enrollment on at least a half-time basis, for 

20 a loan in repayment; 

21 ‘‘(F) is serving in a medical or dental in22 ternship or residency program, the successful 

23 completion of which is required to begin profes24 sional practice or service, or is serving in a 

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1 gram leading to a degree or certificate awarded 

2 by an institution of higher education, a hos3 pital, or a health care facility that offers post4 graduate training; or 

5 ‘‘(G) is eligible for interest payments to be 

6 made on a loan made under this part for serv7 ice in the Armed Forces under section 2174 of 

8 title 10, United States Code, and pursuant to 

9 that eligibility, the interest is being paid on 

10 such loan under section 465(f); 

11 ‘‘(2) during a period sufficient to enable the 

12 borrower to resume honoring the agreement to repay 

13 the outstanding balance of principal and interest on 

14 the loan after default, if— 

15 ‘‘(A) the borrower signs a new agreement 

16 to repay such outstanding balance; 

17 ‘‘(B) the deferment period is limited to 

18 120 days; and 

19 ‘‘(C) such deferment is not granted for 

20 consecutive periods; 

21 ‘‘(3) during a period of administrative 

22 deferment described in subsection (j); or 

23 ‘‘(4) in the case of a borrower of a Federal 

24 ONE Parent Loan or an Excepted Federal ONE 


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1 Consolidation Loan, during a period described in 

2 subsection (k). 

3 ‘‘(c) LENGTH OF DEFERMENT.—A deferment grant4 ed by the Secretary— 

5 ‘‘(1) under subparagraph (F) or (G) of sub6 section (b)(1) shall be renewable at 12 month inter7 vals; 

8 ‘‘(2) under subparagraph (F) of subsection 

9 (b)(1) shall equal the length of time remaining in 

10 the borrower’s medical or dental internship or resi11 dency program; and 

12 ‘‘(3) under subparagraph (G) of subsection 

13 (b)(1) shall not exceed 3 years. 

14 ‘‘(d) REQUEST AND DOCUMENTATION.—The Sec15 retary shall determine the eligibility of a borrower for a 

16 deferment under paragraphs (1), (2), or (4) of subsection 

17 (b), or in the case of a loan for which an endorser is re18 quired, an endorser’s eligibility for a deferment under 

19 paragraph (2) or (4) or eligibility to request a deferment 

20 under paragraph (1), based on— 

21 ‘‘(1) the receipt of a request for a deferment 

22 from the borrower or the endorser, and documenta23 tion of the borrower’s or endorser’s eligibility for the 

24 deferment or eligibility to request the deferment; 


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1 ‘‘(2) receipt of a completed loan application 

2 that documents the borrower’s eligibility for a 

3 deferment; 

4 ‘‘(3) receipt of a student status information 

5 documenting that the borrower is enrolled on at 

6 least a half-time basis; or 

7 ‘‘(4) the Secretary’s confirmation of the bor8 rower’s half-time enrollment status, if the confirma9 tion is requested by the institution of higher edu10 cation. 

11 ‘‘(e) NOTIFICATION.—The Secretary shall— 

12 ‘‘(1) notify a borrower of a loan made under 

13 this part— 

14 ‘‘(A) the granting of a deferment under 

15 this subsection on such loan; and 

16 ‘‘(B) the option of the borrower to con17 tinue making payments on the outstanding bal18 ance of principal and interest on such loan in 

19 accordance with subsection (f); 

20 ‘‘(2) at the time the Secretary grants a 

21 deferment to a borrower of a loan made under this 

22 part, and not less frequently than once every 180 

23 days during the period of such deferment, provide 

24 information to the borrower to assist the borrower in 

25 understanding— 


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1 ‘‘(A) the effect of granting a deferment on 

2 the total amount to be paid under the income3 based repayment plan under 466(d); 

4 ‘‘(B) the fact that interest will accrue on 

5 the loan for the period of deferment, other than 

6 for a deferment granted under subsection 

7 (b)(1)(G); 

8 ‘‘(C) the amount of unpaid principal and 

9 the amount of interest that has accrued since 

10 the last statement of such amounts provided to 

11 the borrower; 

12 ‘‘(D) the amount of interest that will be 

13 capitalized, and the date on which capitalization 

14 will occur; 

15 ‘‘(E) the effect of the capitalization of in16 terest on the borrower’s loan principal and on 

17 the total amount of interest to be paid on the 

18 loan; 

19 ‘‘(F) the option of the borrower to pay the 

20 interest that has accrued before the interest is 

21 capitalized; and 

22 ‘‘(G) the borrower’s option to discontinue 

23 the deferment at any time. 

24 ‘‘(f) FORM OF DEFERMENT.—The form of a 

25 deferment granted under this subsection on a loan made 


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1 under this part shall be temporary cessation of all pay2 ments on such loan, except that— 

3 ‘‘(1) in the case of a deferment granted under 

4 subsection (b)(1)(G), payments of interest on the 

5 loan will be made by the Secretary under section 

6 465(f) during such period of deferment; and 

7 ‘‘(2) a borrower may make payments on the 

8 outstanding balance of principal and interest on 

9 such loan during any period of deferment granted 

10 under this subsection. 

11 ‘‘(g) GRADUATE FELLOWSHIP DEFERMENT.— 

12 ‘‘(1) IN GENERAL.—A borrower of a loan under 

13 this part is eligible for a deferment under subsection 

14 (b)(1)(B)(i) during any period for which an author15 ized official of the borrower’s graduate fellowship 

16 program certifies that the borrower meets the re17 quirements of paragraph (2) and is pursuing a 

18 course of study pursuant to an eligible graduate fel19 lowship program. 

20 ‘‘(2) BORROWER REQUIREMENTS.—A borrower 

21 meets the requirements of this subparagraph if the 

22 borrower— 

23 ‘‘(A) holds at least a baccalaureate degree 

24 conferred by an institution of higher education; 


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1 ‘‘(B) has been accepted or recommended 

2 by an institution of higher education for accept3 ance on a full-time basis into an eligible grad4 uate fellowship program; and 

5 ‘‘(C) is not serving in a medical internship 

6 or residency program, except for a residency 

7 program in dentistry. 

8 ‘‘(h) TREATMENT OF STUDY OUTSIDE THE UNITED

9 STATES.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall treat, 

11 in the same manner as required under section 

12 428(b)(4), any course of study at a foreign univer13 sity that is accepted for the completion of a recog14 nized international fellowship program by the admin15 istrator of such a program as an eligible graduate 

16 fellowship program. 

17 ‘‘(2) REQUESTS FOR DEFERMENT.—Requests 

18 for deferment of repayment of loans under this sub19 section by students engaged in graduate or post20 graduate fellowship-supported study (such as pursu21 ant to a Fulbright grant) outside the United States 

22 shall be approved until completion of the period of 

23 the fellowship, in the same manner as required 

24 under section 428(b)(4). 


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1 ‘‘(i) REHABILITATION TRAINING PROGRAM

2 DEFERMENT.—A borrower of a loan under this part is 

3 eligible for a deferment under subsection (b)(1)(B)(ii) dur4 ing any period for which an authorized official of the bor5 rower’s rehabilitation training program certifies that the 

6 borrower is pursuing an eligible rehabilitation training 

7 program for individuals with disabilities. 

8 ‘‘(j) ADMINISTRATIVE DEFERMENTS.—The Secretary 

9 may grant a deferment to a borrower or, in the case of 

10 a loan for which an endorser is required, an endorser, 

11 without requiring a request and documentation from the 

12 borrower or the endorser under subsection (d) for— 

13 ‘‘(1) a period during which the borrower was 

14 delinquent at the time a deferment is granted, in15 cluding a period for which scheduled payments of 

16 principal and interest were overdue at the time such 

17 deferment is granted; 

18 ‘‘(2) a period during which the borrower or the 

19 endorser was granted a deferment under this sub20 section but for which the Secretary determines the 

21 borrower or the endorser should not have qualified; 

22 ‘‘(3) a period necessary for the Secretary to de23 termine the borrower’s eligibility for the cancellation 

24 of the obligation of the borrower to repay the loan 

25 under section 437; 


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1 ‘‘(4) a period during which the Secretary has 

2 authorized deferment due to a national military mo3 bilization or other local or national emergency; or 

4 ‘‘(5) a period not to exceed 60 days, during 

5 which interest shall accrue but not be capitalized, if 

6 the Secretary reasonably determines that a suspen7 sion of collection activity is warranted to enable the 

8 Secretary to process supporting documentation relat9 ing to a borrower’s request— 

10 ‘‘(A) for a deferment under this sub11 section; 

12 ‘‘(B) for a change in repayment plan under 

13 section 466(c); or 

14 ‘‘(C) to consolidate loans under section 

15 468. 

16 ‘‘(k) DEFERMENTS FOR PARENT OR EXCEPTED CON17 SOLIDATION LOANS.— 

18 ‘‘(1) IN GENERAL.—A qualified borrower shall 

19 be eligible for deferments under paragraphs (3) 

20 through (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 

2 an endorser is required, the endorser of such 

3 loan. 

4 ‘‘(3) ECONOMIC HARDSHIP DEFERMENT.— 

5 ‘‘(A) IN GENERAL.—A qualified borrower 

6 shall be eligible for a deferment during periods, 

7 not to exceed 3 years in total, during which the 

8 qualified borrower experiences an economic 

9 hardship described in subparagraph (B). 

10 ‘‘(B) ECONOMIC HARDSHIP.—An economic 

11 hardship described in this clause is a period 

12 during which the qualified borrower— 

13 ‘‘(i) is receiving payment under a 

14 means-tested benefit program; 

15 ‘‘(ii) is employed full-time and the 

16 monthly gross income of the qualified bor17 rower does not exceed the greater of— 

18 ‘‘(I) the minimum wage rate de19 scribed in section 6 of the Fair Labor 

20 Standards Act of 1938 (29 U.S.C. 

21 206); or 

22 ‘‘(II) an amount equal to 150 

23 percent of the poverty line; or 

24 ‘‘(iii) demonstrates that the sum of 

25 the qualified borrower’s monthly payments 


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1 on the qualified borrower’s Federal ONE 

2 Parent Loan or Excepted Federal ONE 

3 Consolidation Loan is not less than 20 per4 cent of the qualified borrower’s monthly 

5 gross income. 

6 ‘‘(C) ELIGIBILITY.—To be eligible to re7 ceive a deferment under this subparagraph, a 

8 qualified borrower shall submit to the Sec9 retary— 

10 ‘‘(i) for the first period of deferment 

11 under this subparagraph, evidence showing 

12 the monthly gross income of the qualified 

13 borrower; and 

14 ‘‘(ii) for a subsequent period of 

15 deferment that begins less than one year 

16 after the end of a period of deferment 

17 granted under this subparagraph— 

18 ‘‘(I) evidence showing the month19 ly gross income of the qualified bor20 rower; or 

21 ‘‘(II) the qualified borrower’s 

22 most recently filed Federal income tax 

23 return, if such a return was filed in 

24 either of the two tax years preceding 

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1 rower requests the subsequent period 

2 of deferment. 

3 ‘‘(4) UNEMPLOYMENT DEFERMENT.— 

4 ‘‘(A) IN GENERAL.—A qualified borrower 

5 shall be eligible for a deferment for periods dur6 ing which the qualified borrower is seeking, and 

7 is unable to find, full-time employment. 

8 ‘‘(B) ELIGIBILITY.— 

9 ‘‘(i) IN GENERAL.—To be eligible to 

10 receive an deferment under this subpara11 graph, a qualified borrower shall submit to 

12 the Secretary— 

13 ‘‘(I) evidence of the qualified bor14 rower’s eligibility for unemployment 

15 benefits; or 

16 ‘‘(II) written confirmation, or an 

17 equivalent as approved by the Sec18 retary, that— 

19 ‘‘(aa) the qualified borrower 

20 has registered with a public or 

21 private employment agency, if 

22 one is available to the borrower 

23 within 50 miles of the qualified 

24 borrower’s address; and 


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1 ‘‘(bb) for requests submitted 

2 after the initial request, the 

3 qualified borrower has made at 

4 least six diligent attempts during 

5 the preceding six-month period to 

6 secure full-time employment. 

7 ‘‘(ii) ACCEPTANCE OF EMPLOY8 MENT.—A qualified borrower shall not be 

9 eligible for a deferment under this sub10 paragraph if the qualified borrower refuses 

11 to seek or accept employment in types of 

12 positions or at salary levels or responsi13 bility levels for which the qualified bor14 rower feels overqualified based on the 

15 qualified borrower’s education or previous 

16 experience. 

17 ‘‘(C) TERMS OF DEFERMENT.—The fol18 lowing terms shall apply to a deferment under 

19 this subparagraph: 

20 ‘‘(i) INITIAL PERIOD.—The first 

21 deferment granted to a qualified borrower 

22 under this subparagraph may be for a pe23 riod of unemployment beginning not more 

24 than 6 months before the date on which 

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1 rower’s request for deferment and may be 

2 granted for a period of up to 6 months 

3 after that date. 

4 ‘‘(ii) RENEWALS.—Deferments under 

5 this subparagraph shall be renewable at 6- 

6 month intervals beginning after the expira7 tion of the first period of deferment under 

8 clause (i). To be eligible to renew a 

9 deferment under this subparagraph, a 

10 qualified borrower shall submit to the Sec11 retary the information described in sub12 paragraph (B)(i). 

13 ‘‘(iii) AGGREGATE LIMIT.—The period 

14 of all deferments granted to a borrower 

15 under this subparagraph may not exceed 3 

16 years in aggregate. 

17 ‘‘(5) HEALTH DEFERMENT.— 

18 ‘‘(A) IN GENERAL.—A qualified borrower 

19 shall be eligible for a deferment during periods 

20 in which the qualified borrower is unable to 

21 make scheduled loan payments due to high 

22 medical expenses, as determined by the Sec23 retary. 


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1 ‘‘(B) ELIGIBILITY.—To be eligible to re2 ceive a deferment under this subparagraph, a 

3 qualified borrower shall— 

4 ‘‘(i) submit to the Secretary docu5 mentation demonstrating that making 

6 scheduled loan payments would be an ex7 treme economic hardship to the borrower 

8 due to high medical expenses, as deter9 mined by the Secretary; and 

10 ‘‘(ii) resubmit such documentation to 

11 the Secretary not less frequently than once 

12 every 3 months. 

13 ‘‘(l) PROHIBITIONS.— 

14 ‘‘(1) PROHIBITION ON FEES.—No administra15 tive fee or other fee may be charged to the borrower 

16 in connection with the granting of a deferment 

17 under this subsection. 

18 ‘‘(2) PROHIBITION ON ADVERSE CREDIT RE19 PORTING.—No adverse information relating to a bor20 rower may be reported to a consumer reporting 

21 agency solely because of the granting of a deferment 

22 under this subsection. 

23 ‘‘(3) LIMITATION ON AUTHORITY.—The Sec24 retary shall not, through regulation or otherwise, au25 thorize additional deferment options or periods of 


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1 deferment other than the deferment options and pe2 riods of deferment authorized under this subsection. 

3 ‘‘(m) TREATMENT OF ENDORSERS.—With respect to 

4 any Federal ONE Parent Loan or Federal ONE Consoli5 dation Loan for which an endorser is required— 

6 ‘‘(1) paragraphs (2) through (4) of subsection 

7 (b) shall be applied— 

8 ‘‘(A) by substituting ‘An endorser’ for ‘A 

9 borrower’; 

10 ‘‘(B) by substituting ‘the endorser’ for ‘the 

11 borrower’; and 

12 ‘‘(C) by substituting ‘an endorser’ for ‘a 

13 borrower’; and 

14 ‘‘(2) in the case in which the borrower of such 

15 a loan is eligible for a deferment described in sub16 paragraph (C), (D), (E), (F), or (G) of subsection 

17 (b)(1), but is not making payments on the loan, the 

18 endorser of the loan may request a deferment under 

19 such subparagraph for the loan. 

20 ‘‘(n) DEFINITIONS.—In this section: 

21 ‘‘(1) ELIGIBLE GRADUATE FELLOWSHIP PRO22 GRAM.—The term ‘eligible graduate fellowship pro23 gram’, when used with respect to a course of study 

24 pursued by the borrower of a loan under this part, 

25 means a fellowship program that— 


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1 ‘‘(A) provides sufficient financial support 

2 to graduate fellows to allow for full-time study 

3 for at least six months; 

4 ‘‘(B) requires a written statement from 

5 each applicant explaining the applicant’s objec6 tives before the award of that financial support; 

7 ‘‘(C) requires a graduate fellow to submit 

8 periodic reports, projects, or evidence of the fel9 low’s progress; and 

10 ‘‘(D) in the case of a course of study at an 

11 institution of higher education outside the 

12 United States described in section 102, accepts 

13 the course of study for completion of the fellow14 ship program. 

15 ‘‘(2) ELIGIBLE REHABILITATION TRAINING

16 PROGRAM FOR INDIVIDUALS WITH DISABILITIES.— 

17 The term ‘eligible rehabilitation training program 

18 for individuals with disabilities’, when used with re19 spect a course of study pursued by the borrower of 

20 a loan under this part, means a program that— 

21 ‘‘(A) is necessary to assist an individual 

22 with a disability in preparing for, securing, re23 taining, or regaining employment; 


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1 ‘‘(B) is licensed, approved, certified, or 

2 otherwise recognized as providing rehabilitation 

3 training to disabled individuals by— 

4 ‘‘(i) a State agency with responsibility 

5 for vocational rehabilitation programs, 

6 drug abuse treatment programs, mental 

7 health services programs, or alcohol abuse 

8 treatment programs; or 

9 ‘‘(ii) the Secretary of the Department 

10 of Veterans Affairs; and 

11 ‘‘(C) provides or will provide the borrower 

12 with rehabilitation services under a written plan 

13 that— 

14 ‘‘(i) is individualized to meet the bor15 rower’s needs; 

16 ‘‘(ii) specifies the date on which the 

17 services to the borrower are expected to 

18 end; and 

19 ‘‘(iii) requires a commitment of time 

20 and effort from the borrower that prevents 

21 the borrower from being employed at least 

22 30 hours per week, either because of the 

23 number of hours that must be devoted to 

24 rehabilitation or because of the nature of 

25 the rehabilitation. 


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1 ‘‘(3) EXCEPTED FEDERAL ONE CONSOLIDATION

2 LOAN.—The ‘Excepted Federal ONE Consolidation 

3 Loan’ have the meaning given the term in section 

4 466(d)(5). 

5 ‘‘(4) FAMILY SIZE.—The term ‘family size’ 

6 means the number that is determined by counting— 

7 ‘‘(A) the borrower; 

8 ‘‘(B) the borrower’s spouse; 

9 ‘‘(C) the borrower’s children, including un10 born children who are expected to be born dur11 ing the period covered by the deferment, if the 

12 children receive more than half their support 

13 from the borrower; and 

14 ‘‘(D) another individual if, at the time the 

15 borrower requests a deferment under this sec16 tion, the individual— 

17 ‘‘(i) lives with the borrower; 

18 ‘‘(ii) receives more than half of the in19 dividual’s support (which may include 

20 money, gifts, loans, housing, food, clothes, 

21 car, medical and dental care, and payment 

22 of college costs) from the borrower; and 

23 ‘‘(iii) is expected to receive such sup24 port from the borrower during the relevant 

25 period of deferment. 


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1 ‘‘(5) FULL-TIME.—The term ‘full-time’, when 

2 used with respect to employment, means employment 

3 for not less than 30 hours per week that is expected 

4 to continue for not less than three months. 

5 ‘‘(6) MEANS-TESTED BENEFIT PROGRAM.—The 

6 term ‘means-tested benefit program’ means— 

7 ‘‘(A) a State public assistance program 

8 under which eligibility for the program’s bene9 fits, or the amount of such benefits, are deter10 mined on the basis of income or resources of 

11 the individual or family seeking the benefit; or 

12 ‘‘(B) a mandatory spending program of the 

13 Federal Government, other than a program 

14 under this title, under which eligibility for the 

15 program’s benefits, or the amount of such bene16 fits, are determined on the basis of income or 

17 resources of the individual or family seeking the 

18 benefit, and may include such programs as 

19 ‘‘(i) the supplemental security income 

20 program under title XVI of the Social Se21 curity Act (42 U.S.C. 1381 et seq.); 

22 ‘‘(ii) the supplemental nutrition assist23 ance program under the Food and Nutri24 tion Act of 2008 (7 U.S.C. 2011 et seq.); 


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1 ‘‘(iii) the free and reduced price 

2 school lunch program established under the 

3 Richard B. Russell National School Lunch 

4 Act (42 U.S.C. 1751 et seq.); 

5 ‘‘(iv) the program of block grants for 

6 States for temporary assistance for needy 

7 families established under part A of title 

8 IV of the Social Security Act (42 U.S.C. 

9 601 et seq.); 

10 ‘‘(v) the special supplemental nutri11 tion program for women, infants, and chil12 dren established by section 17 of the Child 

13 Nutrition Act of 1966 (42 U.S.C. 1786); 

14 and 

15 ‘‘(vi) other programs identified by the 

16 Secretary. 

17 ‘‘(7) MONTHLY GROSS INCOME.—The term 

18 ‘monthly gross income’, when used with respect to a 

19 borrower, means— 

20 ‘‘(A) the gross amount of income received 

21 by the borrower from employment and other 

22 sources for the most recent month; or 

23 ‘‘(B) one-twelfth of the borrower’s adjusted 

24 gross income, as recorded on the borrower’s 

25 most recently filed Federal income tax return. 


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1 ‘‘SEC. 471. ADDITIONAL TERMS. 

2 ‘‘(a) APPLICABLE PART B PROVISIONS.— 

3 ‘‘(1) DISCLOSURES.—Except as otherwise pro4 vided in this part, each institution of higher edu5 cation with which the Secretary has an agreement 

6 under section 464(a), and each contractor with 

7 which the Secretary has a contract under section 

8 493E, shall, with respect to loans under this part 

9 comply with each of the requirements under section 

10 433 that apply to the institutions of higher edu11 cation and contractors described in section 455(p) 

12 with respect to loans made under part D. 

13 ‘‘(2) OTHER PROVISIONS.—Except as otherwise 

14 provided in this part, the following provisions shall 

15 apply with respect to loans made under this part in 

16 the same manner that such provisions apply with re17 spect to loans made under part D: 

18 ‘‘(A) Section 427(a)(2). 

19 ‘‘(B) Section 428(d). 

20 ‘‘(C) Section 428F 

21 ‘‘(D) Section 430A. 

22 ‘‘(E) Paragraphs (1), (2), (4), and (6) of 

23 section 432(a). 

24 ‘‘(F) Section 432(i). 

25 ‘‘(G) Section 432(l). 


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1 ‘‘(H) Section 432(m), except that an insti2 tution of higher education shall have a separate 

3 master promissory note under paragraph (1)(D) 

4 of such section for loans made under this part. 

5 ‘‘(I) Subsections (a), (c), and (d) of section 

6 437. 

7 ‘‘(3) APPLICATION OF PROVISIONS.—Any provi8 sion listed under paragraph (1) or (2) that applies 

9 to— 

10 ‘‘(A) Federal Direct PLUS Loans made on 

11 behalf of dependent students shall apply to 

12 Federal ONE Parent Loans; 

13 ‘‘(B) Federal Direct PLUS Loans made to 

14 students shall apply to Federal ONE Loans for 

15 graduate or professional students; 

16 ‘‘(C) Federal Direct Unsubsidized Stafford 

17 loans shall apply to Federal ONE Loans for 

18 any student borrower; 

19 ‘‘(D) Federal Direct Consolidation Loans 

20 shall apply to Federal ONE Consolidation 

21 Loans; and 

22 ‘‘(E) forbearance shall apply to deferment 

23 under section 469A. 

24 ‘‘(b) ELIGIBLE STUDENT.—A loan under this part 

25 may only be made to a student who— 


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1 ‘‘(1) is an eligible student under section 484; 

2 ‘‘(2) has agreed to notify promptly the Sec3 retary and the applicable contractors with which the 

4 Secretary has a contract under section 493E con5 cerning— 

6 ‘‘(A) any change of permanent address, 

7 telephone number, or email address; 

8 ‘‘(B) when the student ceases to be en9 rolled on at least a half-time basis; and 

10 ‘‘(C) any other change in status, when 

11 such change in status affects the student’s eligi12 bility for the loan; and 

13 ‘‘(3) is carrying at least one-half the normal 

14 full-time academic workload for the course of study 

15 the student is pursuing (as determined by the insti16 tution). 

17 ‘‘(c) LOAN APPLICATION AND PROMISSORY NOTE.— 

18 The common financial reporting form required in section 

19 483(a)(1) shall constitute the application for loans made 

20 under this part. The Secretary shall develop, print, and 

21 distribute to participating institutions a standard promis22 sory note and loan disclosure form. 

23 ‘‘(d) BORROWER DEFENSES.—A borrower of a loan 

24 under this part may assert a defense to repayment to such 

25 loan under the provisions of section 455(h) that apply to 


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1 a borrower of a loan made under part D asserting, on or 

2 after the date of enactment of the PROSPER Act, a de3 fense to repayment to such loan made under part D. 

4 ‘‘(e) IDENTITY FRAUD PROTECTION.—The Secretary 

5 shall ensure that monthly Federal ONE Loan statements 

6 and other publications of the Department do not contain 

7 more than four digits of the Social Security number of 

8 any individual. 

9 ‘‘(f) AUTHORITY TO SELL LOANS.—The Secretary, 

10 in consultation with the Secretary of the Treasury, is au11 thorized to sell loans made under this part on such terms 

12 determined to be in the best interest of the United States, 

13 except that any such sale shall not result in any cost to 

14 the Federal Government.’’. 

15 PART F—NEED ANALYSIS 

16 SEC. 471. COST OF ATTENDANCE. 

17 Section 472 (20 U.S.C. 1087ll) is amended— 

18 (1) by striking paragraph (10); and 

19 (2) by redesignating paragraphs (11), (12), and 

20 (13) as paragraphs (10), (11), and (12), respec21 tively. 

22 SEC. 472. SIMPLIFIED NEEDS TEST. 

23 Section 479(b)(1) (20 U.S.C. 1087ss) is amended by 

24 striking ‘‘$50,000’’ both places it appears and inserting 

25 ‘‘$100,000’’. 


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1 SEC. 473. DISCRETION OF STUDENT FINANCIAL AID ADMIN2 ISTRATORS. 

3 Section 479A (20 U.S.C. 1087tt) is amended— 

4 (1) in subsection (a), by striking ‘‘financial as5 sistance under section 428H or a Federal Direct 

6 Unsubsidized Stafford Loan’’ and inserting ‘‘a Fed7 eral Direct Unsubsidized Stafford Loan or a Federal 

8 ONE Loan’’; 

9 (2) in subsection (c), by striking ‘‘part B or D’’ 

10 and inserting ‘‘part D or E’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(d) ADJUSTMENT BASED ON DELIVERY OF IN13 STRUCTION.—A student’s eligibility to receive grants, 

14 loans, or work assistance under this title shall be reduced 

15 if a financial aid officer determines, in accordance with 

16 the discretionary authority provided under this section, 

17 that the model or method used to deliver instruction to 

18 the student results in a substantially reduced cost of at19 tendance to the student.’’. 

20 SEC. 474. DEFINITIONS OF TOTAL INCOME AND ASSETS. 

21 Section 480 (20 U.S.C. 1087vv) is amended— 

22 (1) in subsection (a)(1), by striking subpara23 graph (B) and inserting the following: 

24 ‘‘(B) Notwithstanding section 478(a), the 

25 Secretary shall provide for the use of data from 

26 the second preceding tax year to carry out the 


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1 simplification of applications (including sim2 plification for a subset of applications) used for 

3 the estimation and determination of financial 

4 aid eligibility. Such simplification shall include 

5 the sharing of data between the Internal Rev6 enue Service and the Department, pursuant to 

7 the consent of the taxpayer.’’; and 

8 (2) in subsection (f)— 

9 (A) in paragraph (2)— 

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

11 ‘‘or’’ at the end; 

12 (ii) in subparagraph (C), by striking 

13 the period at the end and inserting ‘‘; or’’; 

14 and 

15 (iii) by adding at the end the fol16 lowing: 

17 ‘‘(D) a qualified tuition program (as de18 fined in section 529(b)(1)(A) of the Internal 

19 Revenue Code of 1986).’’; and 

20 (B) in paragraph (5)(A)(i), by striking 

21 ‘‘qualified tuition program (as defined in sec22 tion 529(b)(1)(A) of the Internal Revenue Code 

23 of 1986) or other’’. 


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1 PART G—GENERAL PROVISIONS RELATING TO 

2 STUDENT ASSISTANCE 

3 SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE 

4 PROGRAM. 

5 Section 481 (20 U.S.C. 1088) is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (2)(A)— 

8 (i) by striking ‘‘For the’’ and insert9 ing the following: ‘‘Except as provided in 

10 paragraph (3), for the’’; and 

11 (ii) in clause (i), by striking ‘‘require 

12 a minimum of 30 weeks’’ and inserting the 

13 following: ‘‘require— 

14 ‘‘(I) a minimum of 30 weeks’’; 

15 (iii) in clause (ii), by striking ‘‘re16 quire’’; 

17 (iv) by redesignating clause (ii) as 

18 subclause (II); and 

19 (v) by redesignating clause (iii) as 

20 clause (ii); and 

21 (B) by adding at the end the following: 

22 ‘‘(3)(A) For the purpose of a competency-based 

23 education program the term ‘academic year’ shall be 

24 the published measured period established by the in25 stitution of higher education that is necessary for a 

26 student with a normal full-time workload for the 


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1 course of study the student is pursuing (as meas2 ured using the value of competencies or sets of com3 petencies required by such institution and approved 

4 by such institution’s accrediting agency or associa5 tion) to earn— 

6 ‘‘(i) one-quarter of a bachelor’s degree; 

7 ‘‘(ii) one-half of an associate’s degree; or 

8 ‘‘(iii) with respect to a non-degree or grad9 uate program, the equivalent of a period de10 scribed in clause (i) or (ii). 

11 ‘‘(B)(i) A competency-based education pro12 gram that is not a term-based program may be 

13 treated as a term-based program for purposes 

14 of establishing payment periods for disburse15 ment of loans and grants under this title if— 

16 ‘‘(I) the institution of higher edu17 cation that offers such program charges a 

18 flat subscription fee for access to instruc19 tion during a period determined by the in20 stitution; and 

21 ‘‘(II) the institution is able to deter22 mine the competencies a student is ex23 pected to demonstrate for such subscrip24 tion period. 


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1 ‘‘(ii) Clause (i) shall apply even in a case 

2 in which instruction or other work with respect 

3 to a competency that is expected to be attrib4 utable to a subscription period begins prior to 

5 such subscription period. 

6 ‘‘(iii) In a case in which a competency7 based education program offered by an institu8 tion of higher education is treated as a term9 based program under clause (i), the institution 

10 shall review the academic progress of each stu11 dent enrolled in such program in accordance 

12 with section 484(c), except that such review 

13 shall occur at the end of each payment period.’’; 

14 (2) by amending subsection (b) to read as fol15 lows: 

16 ‘‘(b) ELIGIBLE PROGRAM.—(1) For purposes of this 

17 title, the term ‘eligible program’ means— 

18 ‘‘(A) a program of at least 300 clock hours of 

19 instruction, 8 semester hours, or 12 quarter hours, 

20 offered during a minimum of 10 weeks; or 

21 ‘‘(B) a competency-based program that— 

22 ‘‘(i) has been evaluated and approved by 

23 an accrediting agency or association that— 

24 ‘‘(I) is recognized by the Secretary 

25 under subpart 2 of part H; and 


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1 ‘‘(II) has evaluation of competency2 based education programs within the scope 

3 of its recognition in accordance with sec4 tion 496(a)(4)(C); or 

5 ‘‘(ii) as of the day before the date of enact6 ment of the PROSPER Act, met the require7 ments of a direct assessment program under 

8 section 481(b)(4) (as such section was in effect 

9 on the day before such date of enactment). 

10 ‘‘(2) An eligible program described in paragraph (1) 

11 may be offered in whole or in part through telecommuni12 cations. 

13 ‘‘(3) For purposes of this title, the term ‘eligible pro14 gram’ does not include a program that loses its eligibility 

15 under section 481B(a). 

16 ‘‘(4)(A) If an eligible institution enters into a written 

17 arrangement with an institution or organization that is 

18 not an eligible institution under which such ineligible insti19 tution or organization provides the educational program 

20 (in whole or in part) of students enrolled in the eligible 

21 institution, the educational program provided by such in22 eligible institution shall be considered to be an eligible pro23 gram if— 

24 ‘‘(i) the ineligible institution or organiza25 tion has not— 


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1 ‘‘(I) had its eligibility to participate in 

2 the programs under this title terminated 

3 by the Secretary; 

4 ‘‘(II) voluntarily withdrawn from par5 ticipation in the programs under this title 

6 under a proceeding initiated by the Sec7 retary, accrediting agency or association, 

8 guarantor, or the licensing agency for the 

9 State in which the institution is located, 

10 including a termination, show-cause, or 

11 suspension; 

12 ‘‘(III) had its certification under sub13 part 3 of part H to participate in the pro14 grams under this title revoked by the Sec15 retary; 

16 ‘‘(IV) had its application for recertifi17 cation under subpart 3 of part H to par18 ticipate in the programs under this title 

19 denied by the Secretary; or 

20 ‘‘(V) had its application for certifi21 cation under subpart 3 of part H to par22 ticipate in the programs under this title 

23 denied by the Secretary; 

24 ‘‘(ii) the educational program offered by 

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1 cate otherwise satisfies the requirements of 

2 paragraph (1); and 

3 ‘‘(iii)(I) the ineligible institution or organi4 zation provides 25 percent or less of the edu5 cational program; or 

6 ‘‘(II)(aa) the ineligible institution or orga7 nization provides more than 25 percent of the 

8 educational program; and 

9 ‘‘(bb) the eligible institution’s accrediting 

10 agency or association has determined that the 

11 eligible institution’s arrangement meets the 

12 agency’s standards for the contracting out of 

13 educational services in accordance with section 

14 496(c)(5)(B)(iv). 

15 ‘‘(B) For purposes of subparagraph (A), the term ‘el16 igible institution’ means an institution described in section 

17 487(a).’’; and 

18 (3) in subsection (c)(2), by striking ‘‘part B 

19 of’’. 

20 SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES. 

21 Part G of title IV (20 U.S.C. 1088 et seq. is amend22 ed, as amended by section 481, is further amended by in23 serting after section 481A (20 U.S.C. 1088a) the fol24 lowing: 


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1 ‘‘SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES. 

2 ‘‘(a) INELIGIBILITY OF AN EDUCATIONAL PROGRAM

3 BASED ON LOW REPAYMENT RATES.— 

4 ‘‘(1) IN GENERAL.—With respect to fiscal year 

5 2016 and each succeeding fiscal year, an educational 

6 program at an institution of higher education whose 

7 loan repayment rate is less than 45 percent for each 

8 of the 3 most recent fiscal years for which data are 

9 available shall not be considered an eligible program 

10 for the fiscal year in which the determination is 

11 made and for the 2 succeeding fiscal years, unless, 

12 not later than 30 days after receiving notification 

13 from the Secretary of the loss of eligibility under 

14 this paragraph, the institution appeals the loss of 

15 such program’s eligibility to the Secretary. 

16 ‘‘(2) APPEAL.—The Secretary shall issue a de17 cision on any such appeal within 45 days after its 

18 submission. Such decision may permit a program to 

19 be considered an eligible program, if— 

20 ‘‘(A) the institution demonstrates to the 

21 satisfaction of the Secretary that— 

22 ‘‘(i) the Secretary’s calculation of 

23 such program’s loan repayment rate is not 

24 accurate; and 

25 ‘‘(ii) recalculation would increase such 

26 program’s loan repayment rate for any of 


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1 the 3 fiscal years equal to or greater than 

2 45 percent; or 

3 ‘‘(B) the program is not subject to para4 graph (1) by reason of paragraph (3). 

5 ‘‘(3) PARTICIPATION RATE INDEX.— 

6 ‘‘(A) IN GENERAL.—An institution that 

7 demonstrates to the Secretary that a program’s 

8 participation rate index is equal to or less than 

9 0.11 for any of the 3 most recent fiscal years 

10 for which data is available shall not be subject 

11 to paragraph (1). 

12 ‘‘(B) INDEX CALCULATION.—The partici13 pation rate index for a program shall be deter14 mined by multiplying— 

15 ‘‘(i) the amount of the difference be16 tween— 

17 ‘‘(I) 1.0; and 

18 ‘‘(II) the quotient that results by 

19 dividing— 

20 ‘‘(aa) the program’s loan re21 payment rate for a fiscal year, or 

22 the weighted average loan repay23 ment rate for a fiscal year, by 

24 ‘‘(bb) 100; and 


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1 ‘‘(ii) the quotient that results by di2 viding— 

3 ‘‘(I) the percentage of the pro4 gram’s regular students, enrolled on 

5 at least a half-time basis, who re6 ceived a covered loan for a 12-month 

7 period ending during the 6 months 

8 immediately preceding the fiscal year 

9 for which the program’s loan repay10 ment rate or the weighted average 

11 loan repayment rate is determined, by 

12 ‘‘(II) 100. 

13 ‘‘(C) DATA.—An institution shall provide 

14 the Secretary with sufficient data to determine 

15 the program’s participation rate index not later 

16 than 30 days after receiving an initial notifica17 tion of the program’s draft loan repayment rate 

18 under subsection (d)(4)(C). 

19 ‘‘(D) NOTIFICATION.—Prior to publication 

20 of a final loan repayment rate under subsection 

21 (d)(4)(A) for a program at an institution that 

22 provides the data described in subparagraph 

23 (C), the Secretary shall notify the institution of 

24 the institution’s compliance or noncompliance 

25 with subparagraph (A). 


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1 ‘‘(b) REPAYMENT IMPROVEMENT AND ASSESSMENT

2 OF ELIGIBILITY BASED ON LOW LOAN REPAYMENT

3 RATES.— 

4 ‘‘(1) FIRST YEAR.— 

5 ‘‘(A) IN GENERAL.—An institution with a 

6 program whose loan repayment rate is less than 

7 45 percent for any fiscal year shall establish a 

8 repayment improvement task force to prepare a 

9 plan to— 

10 ‘‘(i) identify the factors causing such 

11 program’s loan repayment rate to fall 

12 below such percent; 

13 ‘‘(ii) establish measurable objectives 

14 and the steps to be taken to improve the 

15 program’s loan repayment rate; and 

16 ‘‘(iii) specify actions that the institu17 tion can take to improve student loan re18 payment, including appropriate counseling 

19 regarding loan repayment options. 

20 ‘‘(B) TECHNICAL ASSISTANCE.—Each in21 stitution subject to this paragraph shall submit 

22 the plan under subparagraph (A) to the Sec23 retary, who shall review the plan and offer tech24 nical assistance to the institution to promote 

25 improved student loan repayment. 


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1 ‘‘(2) SECOND CONSECUTIVE YEAR.— 

2 ‘‘(A) IN GENERAL.—An institution with a 

3 program whose loan repayment rate is less than 

4 45 percent for two consecutive fiscal years, 

5 shall— 

6 ‘‘(i) require the institution’s repay7 ment improvement task force established 

8 under paragraph (1) to review and revise 

9 the plan required under such paragraph; 

10 and 

11 ‘‘(ii) submit such revised plan to the 

12 Secretary. 

13 ‘‘(B) REVIEW BY THE SECRETARY.—The 

14 Secretary— 

15 ‘‘(i) shall review each revised plan 

16 submitted in accordance with this para17 graph; and 

18 ‘‘(ii) may direct that such plan be 

19 amended to include actions, with measur20 able objectives, that the Secretary deter21 mines, based on available data and anal22 yses of student loan repayment and non-re23 payment, will promote student loan repay24 ment. 


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1 ‘‘(c) PROGRAMMATIC LOAN REPAYMENT RATE DE2 FINED.— 

3 ‘‘(1) IN GENERAL.—Except as provided in sub4 section (d), for purposes of this section, the term 

5 ‘loan repayment rate’ means, when used with respect 

6 to an educational program at an institution— 

7 ‘‘(A) with respect to any fiscal year in 

8 which 30 or more current and former students 

9 in such program enter repayment on a covered 

10 loan received for attendance in such program, 

11 the percentage of such current and former stu12 dents— 

13 ‘‘(i) who enter repayment in such fis14 cal year on a covered loan received for at15 tendance in such program; and 

16 ‘‘(ii) who are in a positive repayment 

17 status on each such covered loan at the 

18 end of the second fiscal year following the 

19 fiscal year in which such students entered 

20 repayment on such loan; and 

21 ‘‘(B) with respect to any fiscal year in 

22 which fewer than 30 of the current and former 

23 students in such program enter repayment on a 

24 covered loan received for attendance in such 


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1 program, the percentage of such current and 

2 former students— 

3 ‘‘(i) who, in any of the three most re4 cent fiscal years, entered repayment on a 

5 covered loan received for attendance in 

6 such program; and 

7 ‘‘(ii) who are in a positive repayment 

8 status on each such covered loan at the 

9 end of the second fiscal year following the 

10 fiscal year in which such students entered 

11 repayment on such loan. 

12 ‘‘(2) GUARANTY AGENCY REQUIREMENTS.—The 

13 Secretary shall require that each guaranty agency 

14 that has insured loans for current or former stu15 dents of the institution afford such institution a rea16 sonable opportunity (as specified by the Secretary) 

17 to review and correct errors in the information re18 quired to be provided to the Secretary by the guar19 anty agency for the purposes of calculating a loan 

20 repayment rate for programs at such institution, 

21 prior to the calculation of such rate. 

22 ‘‘(3) POSITIVE REPAYMENT STATUS.—For pur23 poses of this section, the term ‘positive repayment 

24 status’, when used with respect to a borrower of a 

25 covered loan, means— 


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1 ‘‘(A) the borrower has entered repayment 

2 on such loan, and such loan is less than 90 

3 days delinquent; 

4 ‘‘(B) the loan is paid in full (but not 

5 through consolidation); or 

6 ‘‘(C) with respect to a covered loan that is 

7 a Federal ONE Loan, the loan is in a 

8 deferment described in 469A(b)(1), and with 

9 respect to a covered loan made, insured, or 

10 guaranteed under part B or made under part 

11 D, the loan is in a deferment or forbearance 

12 that is comparable to a deferment described in 

13 469A(b)(1). 

14 ‘‘(4) COVERED LOAN.—For purposes of this 

15 section— 

16 ‘‘(A) the term ‘covered loan’ means— 

17 ‘‘(i) a loan made, insured, or guaran18 teed under section 428 or 428H; 

19 ‘‘(ii) a Federal Direct Stafford Loan; 

20 ‘‘(iii) a Federal Direct Unsubsidized 

21 Stafford Loan; 

22 ‘‘(iv) a Federal Direct PLUS Loan 

23 issued to a graduate or professional stu24 dent; 

25 ‘‘(v) a Federal ONE Loan; or 


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1 ‘‘(vi) the portion of a loan made under 

2 section 428C, a Federal Direct Consolida3 tion Loan, or a Federal ONE Consolida4 tion Loan that is used to repay any loan 

5 described in clauses (i) through (v); and 

6 ‘‘(B) the term ‘covered loan’ does not in7 clude a loan described in subparagraph (A) that 

8 has been discharged under section 437(a). 

9 ‘‘(d) SPECIAL RULES.— 

10 ‘‘(1) IN GENERAL.—In the case of a student 

11 who has attended and borrowed at more than one 

12 institution of higher education or for more than one 

13 educational program at an institution, the student 

14 (and such student’s subsequent positive repayment 

15 status on a covered loan, if applicable)) shall be at16 tributed to each institution of higher education and 

17 educational program for attendance at which the 

18 student received a loan that entered repayment for 

19 the fiscal year for which the loan repayment rate is 

20 being calculated. 

21 ‘‘(2) DELINQUENT.—A loan on which a pay22 ment is made by an institution of higher education, 

23 such institutions’s owner, agent, contractor, em24 ployee, or any other entity or individual affiliated 

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1 rower from being more than 90 days delinquent on 

2 the loan, shall be considered more than 90 days de3 linquent for purposes of this subsection. 

4 ‘‘(3) REGULATIONS TO PREVENT EVASIONS.— 

5 The Secretary shall prescribe regulations designed to 

6 prevent an institution of higher education from evad7 ing the application of a loan repayment rate deter8 mination under this section to an educational pro9 gram at such institution through— 

10 ‘‘(A) the use of such measures as branch11 ing, consolidation, change of ownership or con12 trol, or any similar device; or 

13 ‘‘(B) creating a new educational program 

14 that is substantially similar to a program deter15 mined to be ineligible under subsection (a). 

16 ‘‘(4) COLLECTION AND REPORTING OF LOAN

17 REPAYMENT RATES.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 publish not less often than once every fiscal 

20 year a report showing final loan repayment 

21 data for each program at each institution of 

22 higher education for which a loan repayment 

23 rate is calculated under this section. 


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1 ‘‘(B) PUBLICATION.—The Secretary shall 

2 publish the report described in subparagraph 

3 (A) by September 30 of each year. 

4 ‘‘(C) DRAFTS.— 

5 ‘‘(i) IN GENERAL.—The Secretary 

6 shall provide institutions with draft loan 

7 repayment rates for each educational pro8 gram at the institution at least 6 months 

9 prior to the release of the final rates under 

10 subparagraph (A). 

11 ‘‘(ii) CHALLENGE OF DRAFT RATES.— 

12 An institution may challenge a program’s 

13 draft loan repayment rate provided under 

14 clause (i) for any fiscal year by dem15 onstrating to the satisfaction of the Sec16 retary that such draft loan repayment rate 

17 is not accurate. 

18 ‘‘(e) TRANSITION PERIOD.— 

19 ‘‘(1) DURING THE TRANSITION PERIOD.—Dur20 ing the transition period, the cohort default rate for 

21 each institution of higher education shall be cal22 culated under section 435(m)(1) for each fiscal year 

23 for which such rate has not yet been calculated and 

24 any requirements with respect to such rates shall 

25 continue to apply, except that the loans with respect 


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1 to which such cohort default rate shall be calculated 

2 shall be the covered loans defined in subsection 

3 (c)(4). 

4 ‘‘(2) AFTER THE TRANSITION PERIOD.—After 

5 the transition period, no new cohort default rates 

6 shall be calculated for an institution of higher edu7 cation and any requirements with respect to such 

8 rates shall cease to apply. 

9 ‘‘(3) DEFINITIONS.—For purposes of this sub10 section— 

11 ‘‘(A) the term ‘cohort default rate’ has the 

12 meaning given the term in section 435(m); and 

13 ‘‘(B) the term ‘transition period’ means 

14 the period— 

15 ‘‘(i) beginning on the date of enact16 ment of the PROSPER Act; and 

17 ‘‘(ii) ending on the date on which the 

18 Secretary has published under subsection 

19 (d)(4)(A) the final loan repayment rate for 

20 each program at each institution of higher 

21 education with respect to each of fiscal 

22 years 2016, 2017, and 2018.’’. 

23 SEC. 483. MASTER CALENDAR. 

24 Section 482 (20 U.S.C. 1089) is amended— 

25 (1) in subsection (a)— 


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1 (A) in paragraph (1)— 

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

3 ‘‘February 1’’ and inserting ‘‘January 15’’; 

4 (ii) in subparagraph (B), by striking 

5 ‘‘March 1’’ and inserting ‘‘February 1’’; 

6 (iii) in subparagraph (C), by striking 

7 ‘‘June 1’’ and inserting ‘‘May 1’’; 

8 (iv) in subparagraph (D), by striking 

9 ‘‘August 15’’ and inserting ‘‘July 15’’; 

10 (v) by striking subparagraph (E), and 

11 redesignating subparagraphs (F) and (G) 

12 as subparagraphs (E) and (F), respec13 tively; 

14 (vi) in subparagraph (E), as so redes15 ignated, by striking ‘‘October 1’’ and in16 serting ‘‘September 1’’; and 

17 (vii) in subparagraph (F), as so redes18 ignated, by striking ‘‘November 1’’ and in19 serting ‘‘October 1’’; 

20 (B) in paragraph (2)— 

21 (i) in subparagraph (F), by striking 

22 ‘‘and final Pell Grant payment schedule’’; 

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

24 ‘‘June 1’’ and inserting ‘‘May 1’’; 


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1 (iii) by redesignating subparagraphs 

2 (C) through (J) as subparagraphs (D) 

3 through (K), respectively; and 

4 (iv) by inserting after subparagraph 

5 (B) the following: 

6 ‘‘(C) by November 1: final Pell Grant pay7 ment schedule;’’; and 

8 (2) in subsection (b)— 

9 (A) by striking ‘‘413D(d), 442(d), or 

10 462(i)’’ and inserting ‘‘442(d)’’; and 

11 (B) by striking ‘‘the programs under sub12 part 3 of part A, part C, and part E, respec13 tively’’ and inserting ‘‘part C’’. 

14 SEC. 484. FAFSA SIMPLIFICATION. 

15 (a) IN GENERAL.—Section 483 (20 U.S.C. 1090) is 

16 amended— 

17 (1) in subsection (a)(3), by adding at the end 

18 the following: 

19 ‘‘(I) FORMAT.—Not later than 1 year after 

20 the date of the enactment of the PROSPER 

21 Act, the Secretary shall make the electronic 

22 version of the forms under this paragraph avail23 able through a technology tool optimized for use 

24 on mobile devices. Such technology tool shall, at 

25 minimum, enable applicants to— 


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1 ‘‘(i) save data; and 

2 ‘‘(ii) submit the FAFSA of such appli3 cant to the Secretary through such tool. 

4 ‘‘(J) CONSUMER TESTING.—In developing 

5 and maintaining the electronic version of the 

6 forms under this paragraph and the technology 

7 tool for mobile devices under subparagraph (I), 

8 the Secretary shall conduct consumer testing 

9 with appropriate persons to ensure the forms 

10 and technology tool are designed to be easily 

11 usable and understandable by students and 

12 families. Such consumer testing shall include— 

13 ‘‘(i) current and prospective college 

14 students, family members of such students, 

15 and other individuals with expertise in stu16 dent financial assistance application proc17 esses; 

18 ‘‘(ii) dependent students and inde19 pendent students who meet the require20 ments under subsection (b) or (c) of sec21 tion 479; and 

22 ‘‘(iii) dependent students and inde23 pendent students who do not meet the re24 quirements under subsection (b) or (c) of 

25 section 479.’’; and 


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1 (2) by amending subsection (f) to read as fol2 lows: 

3 ‘‘(f) USE OF INTERNAL REVENUE SERVICE DATA

4 RETRIEVAL TOOL TO POPULATE FAFSA.— 

5 ‘‘(1) SIMPLIFICATION EFFORTS.—The Sec6 retary shall— 

7 ‘‘(A) make every effort to allow applicants 

8 to utilize the current data retrieval tool to 

9 transfer, through a rigorous authentication 

10 process, data available from the Internal Rev11 enue Service to reduce the amount of original 

12 data entry by applicants and strengthen the re13 liability of data used to calculate expected fam14 ily contributions, including through the use of 

15 technology to— 

16 ‘‘(i) allow an applicant to automati17 cally populate the electronic version of the 

18 forms under this paragraph with data 

19 available from the Internal Revenue Serv20 ice; and 

21 ‘‘(ii) direct an applicant to appro22 priate questions on such forms based on 

23 the applicant’s answers to previous ques24 tions; and 


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1 ‘‘(B) allow single taxpayers, married tax2 payers filing jointly, and married taxpayers fil3 ing separately to utilize the current data re4 trieval tool to its full capacity. 

5 ‘‘(2) USE OF TAX RETURN IN APPLICATION

6 PROCESS.—The Secretary shall continue to examine 

7 whether data provided by the Internal Revenue Serv8 ice can be used to generate an expected family con9 tribution without additional action on the part of the 

10 student and taxpayer. 

11 ‘‘(3) REPORTS ON FAFSA SIMPLIFICATION EF12 FORTS.—Not less than once every other year, the 

13 Secretary shall report to the authorizing committees 

14 on— 

15 ‘‘(A) the progress of the simplification ef16 forts under this subsection; and 

17 ‘‘(B) the security of the data retrieval 

18 tool.’’. 

19 (b) TECHNICAL AMENDMENT.—Section 483(a)(9)(C) 

20 (20 U.S.C. 1090(a)(9)(C)) is amended by inserting ‘‘, in21 cluding through the tool described in section 485E(c)’’ be22 fore the semicolon. 

23 SEC. 485. STUDENT ELIGIBILITY. 

24 Section 484 (20 U.S.C. 1091) is amended— 

25 (1) in subsection (a)— 


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1 (A) in paragraph (1), by striking ‘‘a de2 gree, certificate, or other program (including a 

3 program of study abroad approved for credit by 

4 the eligible institution at which such student is 

5 enrolled) leading to a’’ and inserting ‘‘an eligi6 ble program (including a program of study 

7 abroad approved for credit by the eligible insti8 tution at which such student is enrolled) lead9 ing to a degree, certificate, or other’’; and 

10 (B) in paragraph (3), by inserting ‘‘ as in 

11 effect on the day before the date of enactment 

12 of the PROSPER Act and pursuant to section 

13 461(a) of such Act,’’ after ‘‘part E,’’; 

14 (2) in subsection (b)— 

15 (A) in paragraph (3)(B), by striking ‘‘part 

16 B or D’’ and inserting ‘‘part B, D, or E’’; and 

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

18 ‘‘(6) For purposes of competency-based education, in 

19 order to be eligible to receive any loan under this title for 

20 an award year, a student may be enrolled in coursework 

21 attributable only to 2 academic years within the award 

22 year.’’; 

23 (3) in subsection (c)— 

24 (A) in paragraph (1)— 

25 (i) in subparagraph (A)— 


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1 (I) by inserting ‘‘least as fre2 quently as’’ before ‘‘the end of each’’; 

3 and 

4 (II) by striking ‘‘, and’’ at the 

5 end and inserting a semicolon; 

6 (ii) in subparagraph (B)— 

7 (I) by striking ‘‘the student has a 

8 cumulative’’ and inserting the fol9 lowing: ‘‘the student has— 

10 ‘‘(i) a cumulative’’; 

11 (II) by striking ‘‘the second’’ and 

12 inserting ‘‘each’’; 

13 (III) by striking the period at the 

14 end and inserting ‘‘; or’’; and 

15 (IV) by adding at the end the fol16 lowing: 

17 ‘‘(ii) for the purposes of competency18 based programs, a non-grade equivalent 

19 demonstration of academic standing con20 sistent with the requirements for gradua21 tion, as determined by the institution, at 

22 the end of each such academic year; and’’; 

23 and 

24 (iii) by adding at the end the fol25 lowing: 


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1 ‘‘(C) the student maintains a pace in his or her 

2 educational program that— 

3 ‘‘(i) ensures that the student completes the 

4 program within the maximum timeframe; and 

5 ‘‘(ii) is measured by a method determined 

6 by the institution which may be based on credit 

7 hours, clock hours, or competencies com8 pleted.’’; 

9 (B) in paragraph (2), by striking ‘‘grading 

10 period’’ and inserting ‘‘evaluation period’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(4) For purposes of this subsection, the term ‘max13 imum timeframe’ means— 

14 ‘‘(A) with respect to an undergraduate program 

15 measured in credit hours, a period that is no longer 

16 than 150 percent of the published length of the edu17 cational program, as measured in credit hours; 

18 ‘‘(B) with respect to an undergraduate program 

19 measured in competencies, a period that is no longer 

20 than 150 percent of the published length of the edu21 cational program, as measured in competencies; 

22 ‘‘(C) with respect to an undergraduate program 

23 measured in clock hours, a period that is no longer 

24 than 150 percent of the published length of the edu25 cational program, as measured by the cumulative 


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1 number of clock hours the student is required to 

2 complete and expressed in calendar time; and 

3 ‘‘(D) with respect to a graduate program, a pe4 riod defined by the institution that is based on the 

5 length of the educational program.’’; 

6 (4) by amending subsection (d) to read as fol7 lows: 

8 ‘‘(d) ADDITIONAL STUDENT ELIGIBILITY.— 

9 ‘‘(1) ABILITY TO BENEFIT STUDENTS.—In 

10 order for a student who does not have a certificate 

11 of graduation from a school providing secondary 

12 education, or the recognized equivalent of such cer13 tificate, to be eligible for any assistance under sub14 part 1 of part A and parts C, D, and E of this title, 

15 the student shall be determined by the institution of 

16 higher education as having the ability to benefit 

17 from the education offered by the institution of high18 er education upon satisfactory completion of 6 credit 

19 hours or the equivalent coursework that are applica20 ble toward a degree or certificate offered by the in21 stitution of higher education. 

22 ‘‘(2) HOMESCHOOL STUDENTS.—A student who 

23 has completed a secondary school education in a 

24 home school setting that is treated as a home school 

25 or private school under State law shall be eligible for 


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1 assistance under subpart 1 of part A and parts C, 

2 D, and E of this title. 

3 ‘‘(3) SECONDARY EDUCATION PROVIDED BY

4 NONPROFIT CORPORATIONS.—A student who has 

5 completed a secondary education provided by a 

6 school operating as a nonprofit corporation that of7 fers a program of study determined acceptable for 

8 admission at an institution of higher education shall 

9 be eligible for assistance under subpart 1 of part A 

10 and parts C, D, and E of this title.’’. 

11 (5) in subsection (f)(1), by striking ‘‘or part E’’ 

12 both places it appears and inserting the following: ‘‘, 

13 part E (as in effect on the day before the date of 

14 enactment of the PROSPER Act and pursuant to 

15 section 461(a) of such Act), or part E (as in effect 

16 on or after the date of enactment of the PROSPER 

17 Act)’’; 

18 (6) by striking subsection (l); 

19 (7) in subsection (n)— 

20 (A) by striking ‘‘(n) DATA BASE MATCH21 ING.—To enforce’’; and inserting the following: 

22 ‘‘(n) SELECTIVE SERVICE REGISTRATION.— 

23 ‘‘(1) DATA BASE MATCHING.—To enforce’’; and 

24 (B) by adding at the end the following: 


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1 ‘‘(2) EFFECT OF FAILURE TO REGISTER FOR

2 SELECTIVE SERVICE.—A person who is 26 years of 

3 age or older shall not be ineligible for assistance or 

4 a benefit provided under this title by reason of fail5 ure to present himself for, and submit to, registra6 tion under section 3 of the Military Selective Service 

7 Act (50 U.S.C. 3802).’’; and 

8 (8) by redesignating subsections (m) through 

9 (t) as subsections (l) through (s). 

10 SEC. 486. STATUTE OF LIMITATIONS. 

11 Section 484A (20 U.S.C. 1088) is amended— 

12 (1) in subsection (a)(2)(C)— 

13 (A) by striking ‘‘or section 463(a)’’ and in14 serting ‘‘, section 463(a) (as in effect on the 

15 day before the date of enactment of the PROS16 PER Act and pursuant to section 461(a) of 

17 such Act), or section 463 (as in effect on or 

18 after the date of enactment of the PROSPER 

19 Act)’’; and 

20 (B) by striking ‘‘or E’’ and inserting ‘‘, E 

21 (as in effect on the day before the date of en22 actment of the PROSPER Act and pursuant to 

23 section 461(a) of such Act), or E (as in effect 

24 on or after the date of enactment of the PROS25 PER Act)’’; and 


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1 (2) in subsection (b)— 

2 (A) by striking ‘‘and’’ at the end of para3 graph (2); 

4 (B) in paragraph (3)— 

5 (i) by inserting ‘‘(as in effect on the 

6 day before the date of enactment of the 

7 PROSPER Act and pursuant to section 

8 461(a) of such Act)’’ after ‘‘part E’’; 

9 (ii) by inserting ‘‘(as so in effect)’’ 

10 after ‘‘section 463(a)’’; and 

11 (iii) by adding ‘‘and’’ at the end; and 

12 (C) by adding at the end the following: 

13 ‘‘(4) in collecting any obligation arising from a 

14 loan made under part E (as in effect on or after the 

15 date of enactment of the PROSPER Act), an insti16 tution of higher education that has an agreement 

17 with the Secretary pursuant to section 463(a) (as so 

18 in effect) shall not be subject to a defense raised by 

19 any borrower based on a claim of infancy.’’. 

20 SEC. 487. INSTITUTIONAL REFUNDS. 

21 Section 484B (20 U.S.C. 1091b) is amended— 

22 (1) in subsection (a)— 

23 (A) in paragraph (1)— 

24 (i) by striking ‘‘If a recipient’’ and in25 serting the following: 


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1 ‘‘(A) CONSEQUENCE OF WITHDRAWAL.—If 

2 a recipient’’; and 

3 (ii) by adding at the end the fol4 lowing: 

5 ‘‘(B) SPECIAL RULE.—For purposes of 

6 subparagraph (A), a student— 

7 ‘‘(i) who is enrolled in a program of8 fered in modules is not considered with9 drawn if the change in the student’s at10 tendance constitutes a change in enroll11 ment status within the payment period 

12 rather than a discontinuance of attendance 

13 within the payment period; and 

14 ‘‘(ii) is considered withdrawn if the 

15 student follows the institution’s official 

16 withdrawal procedures or leaves without 

17 notifying the institution and has not re18 turned before the end of the payment pe19 riod.’’; 

20 (B) in paragraph (3)— 

21 (i) in subparagraph (B), by striking 

22 clauses (i) and (ii) and inserting the fol23 lowing: 

24 ‘‘(i) 0 percent, if the day the student 

25 withdrew occurs when the student has 


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1 completed (as determined in accordance 

2 with subsection (d)) 0 to 24 percent of the 

3 payment period or period of enrollment; 

4 ‘‘(ii) 25 percent, if the day the stu5 dent withdrew occurs when the student has 

6 completed (as determined in accordance 

7 with subsection (d)) 25 to 49 percent of 

8 the payment period or period of enroll9 ment; 

10 ‘‘(iii) 50 percent, if the day the stu11 dent withdrew occurs when the student has 

12 completed (as determined in accordance 

13 with subsection (d)) 50 to 74 percent of 

14 the payment period or period of enroll15 ment; or 

16 ‘‘(iv) 75 percent, if the day the stu17 dent withdrew occurs when the student has 

18 completed (as determined in accordance 

19 with subsection (d)) 75 to 99 percent of 

20 the payment period or period of enroll21 ment.’’. 

22 (ii) in subparagraph (C)(i), by strik23 ing ‘‘subparts 1 and 3 of part A’’ and in24 serting ‘‘subpart 1 of part A’’; and 

25 (C) in paragraph (4)— 


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

2 ‘‘Secretary), the institution of higher edu3 cation shall contact the borrower’’ and in4 serting ‘‘Secretary), the institution of high5 er education shall have discretion to deter6 mine whether all or a portion of the late or 

7 post-withdrawal disbursement should be 

8 made, under a publicized institutional pol9 icy. If the institution of higher education 

10 determines that a disbursement should be 

11 made, the institution shall contact the bor12 rower’’; and 

13 (ii) in subparagraph (B) by striking 

14 ‘‘institution or the student, or both, as 

15 may be required under paragraphs (1) and 

16 (2) of subsection (b), to the programs 

17 under this title in the order specified in’’ 

18 and inserting ‘‘institution, as may be re19 quired under paragraph (1) of subsection 

20 (b), to the programs under this title in ac21 cordance 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 

5 assistance awarded under this title that has not been 

6 earned by the student, as calculated under sub7 section (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 

14 in paragraph (1). 

15 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

16 in this section shall be construed to prevent an 

17 institution 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 

24 enrollment for which a return of funds is re25 quired. 


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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 pe8 riod or period of enrollment for which a re9 turn 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 

17 ‘day the student withdrew’— 

18 ‘‘(A) for institutions not required to take 

19 attendance, is the date as determined by the in20 stitution that— 

21 ‘‘(i) the student began the withdrawal 

22 process prescribed and publicized by the 

23 institution, or a later date if the student 

24 continued 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 stu14 dent did not begin the withdrawal process, due to ill15 ness, accident, grievous personal loss, or other such 

16 circumstances beyond the student’s control, the in17 stitution may determine the appropriate withdrawal 

18 date 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 

23 in an academic program throughout the entire pay24 ment 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 

5 amended in the matter preceding subparagraph (A) by 

6 striking the second and third sentences and inserting the 

7 following: ‘‘The information required by this section shall 

8 be produced and be made readily available to enrolled and 

9 prospective students on the institution’s website (or in 

10 other formats 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—’’ 

14 and all that follows and inserting a period. 

15 (c) ELIMINATION OF CERTAIN REPORTING REQUIRE16 MENTS.— 

17 (1) IN GENERAL.—Section 485(a)(1) (20 

18 U.S.C. 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 

5 485(a) (20 U.S.C. 1092(a)) is amended by striking 

6 paragraphs (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 

13 ‘‘through the use of an interactive pro14 gram, during an exit counseling session 

15 that is in-person or online, or through the 

16 use of the online counseling tool described 

17 in subsection (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), 

23 as in effect on or after the date of enact24 ment of the PROSPER Act’’ after ‘‘part 

25 E’’; 


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1 (B) by redesignating clauses (i) through 

2 (ix) as clauses (iv) through (xii), respectively; 

3 (C) by inserting before clause (iv), as so 

4 redesignated, the following: 

5 ‘‘(i) a summary of the outstanding 

6 balance of principal and interest due on 

7 the loans made to the borrower under this 

8 title; 

9 ‘‘(ii) an explanation of the grace pe10 riod preceding repayment and the expected 

11 date that the borrower will enter repay12 ment; 

13 ‘‘(iii) an explanation of cases of inter14 est capitalization and that the borrower 

15 has the option to pay any interest that has 

16 accrued while the borrower was in school 

17 or that may accrue during the grace period 

18 preceding repayment or during an author19 ized period of deferment or forbearance, 

20 prior to the capitalization of the interest;’’; 

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

22 (i) by striking ‘‘sample information 

23 showing the average’’ and inserting ‘‘infor24 mation, based on the borrower’s outVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00402 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 standing balance described in clause (i), 

2 showing the borrower’s’’; and 

3 (ii) by striking ‘‘of each plan’’ and in4 serting ‘‘of at least the standard repay5 ment plan and the income-based repay6 ment plan under section 466(d)’’; 

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

8 (i) by inserting ‘‘decreased credit 

9 score,’’ after ‘‘credit reports,’’; and 

10 (ii) by inserting ‘‘potential reduced 

11 ability to rent or purchase a home or car, 

12 potential difficulty in securing employ13 ment,’’ after ‘‘Federal law,’’; 

14 (F) in clause (x), as so redesignated, by 

15 striking ‘‘consolidation loan under section 428C 

16 or a’’; 

17 (G) in clauses (xi) and (xii), as so redesig18 nated, by striking ‘‘and’’ at the end; and 

19 (H) by adding at the end the following: 

20 ‘‘(xiii) for each of the borrower’s loans 

21 made under this title for which the borrower is 

22 receiving counseling under this subsection, the 

23 contact information for the servicer of the loan 

24 and a link to the Website of such servicer; and 


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1 ‘‘(xiv) an explanation that an individual 

2 has a right to annually request a disclosure of 

3 information collected by a consumer reporting 

4 agency pursuant to section 612(a) of the Fair 

5 Credit Reporting Act (15 U.S.C. 1681j(a)).’’; 

6 (2) in paragraph (1)(B)— 

7 (A) by inserting ‘‘online or’’ before ‘‘in 

8 writing’’; and 

9 (B) by adding before the period at the end 

10 the following: ‘‘, except that in the case of an 

11 institution using the online counseling tool de12 scribed in subsection (n)(1)(A), the Secretary 

13 shall attempt to provide such information to the 

14 student in the manner described in subsection 

15 (n)(3)(C)’’; and 

16 (3) in paragraph (2)(C), by inserting ‘‘, such as 

17 the online counseling tool described in subsection 

18 (n)(1)(A),’’ after ‘‘electronic means’’. 

19 (e) DEPARTMENTAL PUBLICATION OF DESCRIPTIONS

20 OF ASSISTANCE PROGRAMS.—The third sentence of sec21 tion 485(d)(1) (20 U.S.C. 1092(d)(1)) is amended by 

22 striking ‘‘part D’’ and inserting ‘‘part D or E’’. 

23 (f) AMENDMENTS TO CLERY ACT.— 

24 (1) PREVENTING INTERFERENCE WITH CRIMI25 NAL JUSTICE PROCEEDINGS; TIMELY WARNINGS; 


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1 CONSISTENCY OF INSTITUTIONAL CRIME REPORT2 ING.—Section 485(f) (20 U.S.C. 1092(f)) is amend3 ed— 

4 (A) by striking paragraph (3) and insert5 ing the following: 

6 ‘‘(3) Each institution participating in any pro7 gram under this title, other than a foreign institu8 tion of higher education, shall make timely reports 

9 to the campus community on crimes described in 

10 paragraph (1)(F) that have been reported to campus 

11 security officials and pose a serious and continuing 

12 threat to other students and employees’ safety. Such 

13 reports shall withhold the names of victims as con14 fidential and shall be provided in a timely manner, 

15 except that an institution may delay issuing a report 

16 if the issuance would compromise ongoing law en17 forcement efforts, such as efforts to apprehend a 

18 suspect. The report shall also include information 

19 designed to assist students and employees in staying 

20 safe and avoiding similar occurrences to the extent 

21 such information is available and appropriate to in22 clude. In assessing institutional compliance with this 

23 section, the Secretary shall defer to the institution’s 

24 determination of whether a particular crime poses a 

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1 nity, and the timeliness of such warning, provided 

2 that, in making its decision, the institution acted 

3 reasonably and based on the considered professional 

4 judgement of campus security officials, based on the 

5 facts and circumstances known at the time.’’; 

6 (B) by redesignating paragraph (18) as 

7 paragraph (20); and 

8 (C) by inserting after paragraph (17) the 

9 following: 

10 ‘‘(18) Nothing in this subsection may be construed 

11 to prohibit an institution of higher education from delay12 ing the initiation of, or suspending, an investigation or in13 stitutional disciplinary proceeding involving an allegation 

14 of sexual assault in response to a request from a law en15 forcement agency or a prosecutor to delay the initiation 

16 of, or suspend, the investigation or proceeding, and any 

17 delay or suspension of such an investigation or proceeding 

18 in response to such a request may not serve as the grounds 

19 for any sanction or audit finding against the institution 

20 or for the suspension or termination of the institution’s 

21 participation in any program under this title. 

22 ‘‘(19)(A) Reporting carried out under this subsection 

23 shall be conducted in a manner to ensure maximum con24 sistency with the Uniform Crime Reporting Program of 

25 the Department of Justice. 


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1 ‘‘(B) The Secretary shall require institutions of high2 er education to report crime statistics under this section 

3 using definitions of such crimes, when available, from the 

4 Uniform Crime Reporting Program of the Department of 

5 Justice. 

6 ‘‘(C) The Secretary shall maintain a publicly avail7 able and updated list of all applicable definitions from the 

8 Uniform Crime Reporting Program of the Department of 

9 Justice. 

10 ‘‘(D) With respect to a report under this subsection, 

11 in the case of a crime for which no Uniform Crime Report12 ing Program of the Department of Justice definition ex13 ists, the Secretary shall require that institutions of higher 

14 education report such crime according to a definition pro15 vided by the Secretary. 

16 ‘‘(E) An institution of higher education that reports 

17 a crime described in subparagraph (D) shall not be subject 

18 to any penalty or fine for reporting inaccuracies or omis19 sions if the institution of higher education can dem20 onstrate that it made a reasonable and good faith effort 

21 to report crimes consistent with the definition provided by 

22 the Secretary. 

23 ‘‘(F) With respect to a report under this subsection, 

24 the Secretary shall require institutions of higher education 

25 to follow the Hierarchy Rule for reporting crimes under 


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1 the Uniform Crime Reporting Program of the Department 

2 of Justice, so as to minimize duplicate reporting and en3 sure greater consistency with national crime reporting sys4 tems.’’. 

5 (2) DUE PROCESS REQUIREMENTS FOR INSTI6 TUTIONAL DISCIPLINARY PROCEEDINGS.—Section 

7 485(f)(8)(B)(iv)(I) (20 U.S.C. 1092(f)(8)(B)(iv)(I)) 

8 is amended to read as follows: 

9 ‘‘(I) the investigation of the allegation 

10 and any institutional disciplinary pro11 ceeding in response to the allegation shall 

12 be prompt, impartial, and fair to both the 

13 accuser and the accused by, at a min14 imum— 

15 ‘‘(aa) providing all parties to the 

16 proceeding with adequate written no17 tice of the allegation not later than 2 

18 weeks prior to the start of any formal 

19 hearing or similar adjudicatory pro20 ceeding, and including in such notice 

21 a description of all rights and respon22 sibilities under the proceeding, a 

23 statement of all relevant details of the 

24 allegation, and a specific statement of 

25 the sanctions which may be imposed; 


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1 ‘‘(bb) providing each person 

2 against whom the allegation is made 

3 with a meaningful opportunity to 

4 admit or contest the allegation; 

5 ‘‘(cc) ensuring that all parties to 

6 the proceeding have access to all ma7 terial evidence not later than one week 

8 prior to the start of any formal hear9 ing or similar adjudicatory pro10 ceeding; 

11 ‘‘(dd) ensuring that the pro12 ceeding is carried out free from con13 flicts of interest by ensuring that 

14 there is no commingling of adminis15 trative or adjudicative roles; and 

16 ‘‘(ee) ensuring that the investiga17 tion and proceeding shall be con18 ducted by officials who receive annual 

19 education on issues related to domes20 tic violence, dating violence, sexual as21 sault, and stalking, and on how to 

22 conduct an investigation and an insti23 tutional disciplinary proceeding that 

24 protects the safety of victims, ensures 

25 fairness for both the accuser and the 


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1 accused, and promotes account2 ability;’’. 

3 (3) ESTABLISHMENT OF STANDARD OF EVI4 DENCE FOR INSTITUTIONAL DISCIPLINARY PRO5 CEEDINGS.— 

6 (A) INCLUSION IN STATEMENT OF POL7 ICY.—Section 485(f)(8)(B) (20 U.S.C. 

8 1092(f)(8)(B)) is amended by adding at the 

9 end the following new clause: 

10 ‘‘(viii) The establishment of a standard of 

11 evidence that will be used in institutional dis12 ciplinary proceedings involving allegations of 

13 sexual assault, which may be based on such 

14 standards and criteria as the institution con15 siders appropriate (including the institution’s 

16 culture, history, and mission, the values re17 flected in its student code of conduct, and the 

18 purpose of the institutional disciplinary pro19 ceedings) so long as the standard is not arbi20 trary or capricious and is applied consistently 

21 throughout all such proceedings.’’. 

22 (B) CONFORMING AMENDMENTS.—Section 

23 485(f)(8)(B)(iv) (20 U.S.C. 1092(f)(8)(B)(iv)) 

24 is amended— 


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

2 subclause (II); 

3 (ii) by striking the period at the end 

4 of subclause (III) and inserting ‘‘; and’’; 

5 and 

6 (iii) by adding at the end the fol7 lowing new subclause: 

8 ‘‘(IV) in the case of a proceeding in9 volving an allegation of sexual assault, 

10 such proceedings shall be conducted in ac11 cordance with the standard of evidence es12 tablished by the institution under clause 

13 (viii), together with a clear statement de14 scribing such standard of evidence.’’. 

15 (4) EDUCATION MODULES FOR OFFICIALS CON16 DUCTING INVESTIGATIONS AND INSTITUTIONAL DIS17 CIPLINARY PROCEEDINGS.—Section 485(f)(8) (20 

18 U.S.C. 1092(f)(8)) is amended by adding at the end 

19 the following new subparagraph: 

20 ‘‘(D) In consultation with experts from institu21 tions of higher education, law enforcement agencies, 

22 advocates for sexual assault victims, experts in due 

23 process, and other appropriate persons, the Sec24 retary shall create and regularly update modules 

25 which an institution of higher education may use to 


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1 provide the annual education described in subpara2 graph (B)(iv)(I)(ee) for officials conducting inves3 tigations and institutional disciplinary proceedings 

4 involving allegations described in such subparagraph. 

5 If the institution uses such modules to provide the 

6 education described in such subparagraph, the insti7 tution shall be considered to meet any requirement 

8 under such subparagraph or any other Federal law 

9 regarding the education provided to officials con10 ducting such investigations and proceedings.’’. 

11 (g) MODIFICATION OF CERTAIN REPORTING RE12 QUIREMENTS.— 

13 (1) FIRE SAFETY.—Section 485(i) (20 U.S.C. 

14 1092(i)) is amended to read as follows: 

15 ‘‘(i) FIRE SAFETY REPORTS.— 

16 ‘‘(1) ANNUAL REPORT.—Each eligible institu17 tion participating in any program under this title 

18 that maintains on-campus student housing facilities 

19 shall, on an annual basis, publish a fire safety re20 port, which shall contain information with respect to 

21 the campus fire safety practices and standards of 

22 that institution, statistics on any fire related inci23 dents or injuries, and any preventative measures or 

24 technologies. 


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1 ‘‘(2) RULES OF CONSTRUCTION.—Nothing in 

2 this subsection shall be construed to— 

3 ‘‘(A) authorize the Secretary to require 

4 particular policies, procedures, programs, or 

5 practices by institutions of higher education 

6 with respect to fire safety; 

7 ‘‘(B) affect section 444 of the General 

8 Education Provisions Act (commonly known as 

9 the ‘Family Education Rights and Privacy Act 

10 of 1974’) or the regulations issued under sec11 tion 264 of the Health Insurance Portability 

12 and Accountability Act of 1996 (42 U.S.C. 

13 1320d-2 note); 

14 ‘‘(C) create a cause of action against any 

15 institution of higher education or any employee 

16 of such an institution for any civil liability; or 

17 ‘‘(D) establish any standard of care. 

18 ‘‘(3) EVIDENCE.—Notwithstanding any other 

19 provision of law, evidence regarding compliance or 

20 noncompliance with this subsection shall not be ad21 missible as evidence in any proceeding of any court, 

22 agency, board, or other entity, except with respect to 

23 an action to enforce this subsection.’’. 

24 (2) MISSING PERSONS PROCEDURES.— 


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1 (A) IN GENERAL.—Section 485(j)(1) (20 

2 U.S.C. 1092(j)(1)) is amended to read as fol3 lows: 

4 ‘‘(1) IN GENERAL.—Each institution of higher 

5 education that provides on-campus housing and par6 ticipates in any program under this title shall estab7 lish a missing student policy for students who reside 

8 in on-campus housing that, at a minimum, informs 

9 each residing student that the institution will notify 

10 such student’s designated emergency contact and the 

11 appropriate law enforcement agency not later than 

12 24 hours after the time that the student is deter13 mined missing, and in the case of a student who is 

14 under 18 years of age, the institution will notify a 

15 custodial parent or guardian.’’. 

16 (B) RULE OF CONSTRUCTION.—Section 

17 485(j)(2) (20 U.S.C. 1092(j)(2)) is amended— 

18 (i) by striking ‘‘or’’ at the end of sub19 paragraph (A); 

20 (ii) by striking the period at the end 

21 of subparagraph (B) and inserting ‘‘; or’’; 

22 and 

23 (iii) by adding at the end the fol24 lowing new subparagraph: 


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1 ‘‘(C) to require an institution of higher 

2 education to maintain separate missing student 

3 emergency contact information, so long as the 

4 institution otherwise has an emergency contact 

5 for students residing on campus.’’. 

6 (h) ANNUAL COUNSELING.—Section 485(l) (20 

7 U.S.C. 1092(l)) is amended to read as follows: 

8 ‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 

9 ‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 

10 ‘‘(A) IN GENERAL.—Each eligible institu11 tion shall ensure that each individual enrolled 

12 at such institution who receives a Federal Pell 

13 Grant or a loan made under this title (other 

14 than a Federal Direct Consolidation Loan or 

15 Federal ONE Consolidation Loan) receives 

16 comprehensive information on the terms and 

17 conditions of such Federal Pell Grant or loan 

18 and the responsibilities the individual has with 

19 respect to such Federal Pell Grant or loan. 

20 Such information shall be provided, for each 

21 award year for which the individual receives 

22 such Federal Pell Grant or loan, in a simple 

23 and understandable manner— 

24 ‘‘(i) during a counseling session con25 ducted in person; 


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1 ‘‘(ii) online, with the individual ac2 knowledging receipt of the information; or 

3 ‘‘(iii) through the use of the online 

4 counseling tool described in subsection 

5 (n)(1)(B). 

6 ‘‘(B) USE OF INTERACTIVE PROGRAMS.— 

7 In the case of institutions not using the online 

8 counseling tool described in subsection 

9 (n)(1)(B), the Secretary shall require such in10 stitutions to carry out the requirements of sub11 paragraph (A)— 

12 ‘‘(i) through the use of interactive 

13 programs; 

14 ‘‘(ii) during an annual counseling ses15 sion that is in-person or online that tests 

16 the individual’s understanding of the terms 

17 and conditions of the Federal Pell Grant 

18 or loan awarded to the student; and 

19 ‘‘(iii) using simple and understandable 

20 language and clear formatting. 

21 ‘‘(2) ALL INDIVIDUALS.—The information to be 

22 provided under paragraph (1) to each individual re23 ceiving counseling under this subsection shall include 

24 the following: 


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1 ‘‘(A) An explanation of how the student 

2 may budget for typical educational expenses 

3 and a sample budget based on the cost of at4 tendance for the institution. 

5 ‘‘(B) An explanation that an individual has 

6 a right to annually request a disclosure of infor7 mation collected by a consumer reporting agen8 cy pursuant to section 612(a) of the Fair Credit 

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

10 ‘‘(C) Based on the most recent data avail11 able from the American Community Survey 

12 available from the Department of Commerce, 

13 the estimated average income and percentage of 

14 employment in the State of domicile of the bor15 rower for persons with— 

16 ‘‘(i) a high school diploma or equiva17 lent; 

18 ‘‘(ii) some post-secondary education 

19 without completion of a degree or certifi20 cate; 

21 ‘‘(iii) an associate’s degree; 

22 ‘‘(iv) a bachelor’s degree; and 

23 ‘‘(v) a graduate or professional de24 gree. 


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1 ‘‘(D) An introduction to the financial man2 agement resources provided by the Financial 

3 Literacy and Education Commission. 

4 ‘‘(3) STUDENTS RECEIVING FEDERAL PELL

5 GRANTS.—The information to be provided under 

6 paragraph (1) to each student receiving a Federal 

7 Pell Grant shall include the following: 

8 ‘‘(A) An explanation of the terms and con9 ditions of the Federal Pell Grant. 

10 ‘‘(B) An explanation of approved edu11 cational expenses for which the student may use 

12 the Federal Pell Grant. 

13 ‘‘(C) An explanation of why the student 

14 may have to repay the Federal Pell Grant. 

15 ‘‘(D) An explanation of the maximum 

16 number of semesters or equivalent for which the 

17 student may be eligible to receive a Federal Pell 

18 Grant, and a statement of the amount of time 

19 remaining for which the student may be eligible 

20 to receive a Federal Pell Grant. 

21 ‘‘(E) An explanation that if the student 

22 transfers to another institution not all of the 

23 student’s courses may be acceptable to apply to24 ward meeting specific degree or program re25 quirements at such institution, but the amount 


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1 of time remaining for which a student may be 

2 eligible to receive a Federal Pell Grant, as pro3 vided under subparagraph (D), will not change. 

4 ‘‘(F) An explanation of how the student 

5 may seek additional financial assistance from 

6 the institution’s financial aid office due to a 

7 change in the student’s financial circumstances, 

8 and the contact information for such office. 

9 ‘‘(4) BORROWERS RECEIVING LOANS MADE

10 THIS TITLE (OTHER THAN FEDERAL DIRECT PLUS

11 LOANS MADE ON BEHALF OF DEPENDENT STU12 DENTS OR FEDERAL ONE PARENT LOANS).—The in13 formation to be provided under paragraph (1) to a 

14 borrower of a loan made under this title (other than 

15 other than a Federal Direct PLUS Loan made on 

16 behalf of a dependent student or a Federal ONE 

17 Parent Loan) shall include the following: 

18 ‘‘(A) To the extent practicable, the effect 

19 of accepting the loan to be disbursed on the eli20 gibility of the borrower for other forms of stu21 dent financial assistance. 

22 ‘‘(B) An explanation of the use of the mas23 ter promissory note. 


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1 ‘‘(C) An explanation that the borrower is 

2 not required to accept the full amount of the 

3 loan offered to the borrower. 

4 ‘‘(D) An explanation that the borrower 

5 should consider accepting any grant, scholar6 ship, or State or Federal work-study jobs for 

7 which the borrower is eligible prior to accepting 

8 Federal student loans. 

9 ‘‘(E) An explanation of treatment of loans 

10 made under this title and private education 

11 loans in bankruptcy, and an explanation that if 

12 a borrower decides to take out a private edu13 cation loan— 

14 ‘‘(i) the borrower has the ability to se15 lect a private educational lender of the bor16 rower’s choice; 

17 ‘‘(ii) the proposed private education 

18 loan may impact the borrower’s potential 

19 eligibility for other financial assistance, in20 cluding Federal financial assistance under 

21 this title; and 

22 ‘‘(iii) the borrower has a right— 

23 ‘‘(I) to accept the terms of the 

24 private education loan within 30 cal25 endar days following the date on 


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1 which the application for such loan is 

2 approved and the borrower receives 

3 the required disclosure documents, 

4 pursuant to section 128(e)(6) of the 

5 Truth in Lending Act; and 

6 ‘‘(II) to cancel such loan within 3 

7 business days of the date on which the 

8 loan is consummated, pursuant to sec9 tion 128(e)(7) of such Act. 

10 ‘‘(F) An explanation of the approved edu11 cational expenses for which the borrower may 

12 use a loan made under this title. 

13 ‘‘(G) Information on the annual and aggre14 gate loan limits for a loan made under this 

15 title. 

16 ‘‘(H) Information on interest, including the 

17 annual percentage rate of such loan, as cal18 culated using the standard 10-year repayment 

19 term, and how interest accrues and is capital20 ized during periods when the interest is not 

21 paid by the borrower. 

22 ‘‘(I) The option of the borrower to pay the 

23 interest while the borrower is in school. 

24 ‘‘(J) The definition of half-time enrollment 

25 at the institution, during regular terms and 


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1 summer school, if applicable, and the con2 sequences of not maintaining at least half-time 

3 enrollment. 

4 ‘‘(K) An explanation of the importance of 

5 contacting the appropriate offices at the institu6 tion of higher education if the borrower with7 draws prior to completing the borrower’s pro8 gram of study so that the institution can pro9 vide exit counseling, including information re10 garding the borrower’s repayment options and 

11 loan consolidation. 

12 ‘‘(L) For a first-time borrower or a bor13 rower of a loan under this title who owes no 

14 principal or interest on such loan— 

15 ‘‘(i) a statement of the anticipated 

16 balance on the loan for which the borrower 

17 is receiving counseling under this sub18 section; 

19 ‘‘(ii) based on such anticipated bal20 ance, the anticipated monthly payment 

21 amount under, at minimum— 

22 ‘‘(I) the standard repayment 

23 plan; and 

24 ‘‘(II) an income-based repayment 

25 plan under section 466(d) or 493C, as 


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1 determined using available percentile 

2 data from the Bureau of Labor Sta3 tistics of the starting salary for the 

4 occupation in which the borrower has 

5 an interest in or intends to be em6 ployed; and 

7 ‘‘(iii) an estimate of the projected 

8 monthly payment amount under each re9 payment plan described in clause (ii), 

10 based on the average cumulative indebted11 ness at graduation for borrowers of loans 

12 made under this title who are in the same 

13 program of study as the borrower. 

14 ‘‘(M) For a borrower with an outstanding 

15 balance of principal or interest due on a loan 

16 made under this title— 

17 ‘‘(i) a current statement of the 

18 amount of such outstanding balance and 

19 interest accrued; 

20 ‘‘(ii) based on such outstanding bal21 ance, the anticipated monthly payment 

22 amount under the standard repayment 

23 plan, and the income-based repayment plan 

24 under section 466(d) or 493C, as deter25 mined using available percentile data from 


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1 the Bureau of Labor Statistics of the 

2 starting salary for the occupation the bor3 rower intends to be employed; and 

4 ‘‘(iii) an estimate of the projected 

5 monthly payment amount under each re6 payment plan described in clause (ii), 

7 based on— 

8 ‘‘(I) the outstanding balance de9 scribed in clause (i); 

10 ‘‘(II) the anticipated outstanding 

11 balance on the loan for which the stu12 dent is receiving counseling under this 

13 subsection; and 

14 ‘‘(III) a projection for any other 

15 loans made under this title that the 

16 borrower is reasonably expected to ac17 cept during the borrower’s program of 

18 study based on at least the expected 

19 increase in the cost of attendance of 

20 such program. 

21 ‘‘(N) The obligation of the borrower to 

22 repay the full amount of the loan, regardless of 

23 whether the borrower completes or does not 

24 complete the program in which the borrower is 


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1 enrolled within the regular time for program 

2 completion. 

3 ‘‘(O) The likely consequences of default on 

4 the loan, including adverse credit reports, delin5 quent debt collection procedures under Federal 

6 law, and litigation, and a notice of the institu7 tion’s most recent loan repayment rate (as de8 fined in section 481B) for the educational pro9 gram in which the borrower is enrolled, an ex10 planation of the loan repayment rate, and the 

11 most recent national average loan repayment 

12 rate for an educational program. 

13 ‘‘(P) Information on the National Student 

14 Loan Data System and how the borrower can 

15 access the borrower’s records. 

16 ‘‘(Q) The contact information for the insti17 tution’s financial aid office or other appropriate 

18 office at the institution the borrower may con19 tact if the borrower has any questions about the 

20 borrower’s rights and responsibilities or the 

21 terms and conditions of the loan. 

22 ‘‘(5) BORROWERS RECEIVING FEDERAL DIRECT

23 PLUS LOANS FOR DEPENDENT STUDENTS OR FED24 ERAL ONE PARENT LOANS.—The information to be 

25 provided under paragraph (1) to a borrower of a 


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1 Federal Direct PLUS Loan for a dependent student 

2 or a Federal ONE Parent Loan shall include the fol3 lowing: 

4 ‘‘(A) The information described in sub5 paragraphs (A) through (C) and (N) through 

6 (Q) of paragraph (4). 

7 ‘‘(B) An explanation of the treatment of 

8 the loan and private education loans in bank9 ruptcy. 

10 ‘‘(C) Information on the annual and aggre11 gate loan limits. 

12 ‘‘(D) Information on the annual percent13 age rate of the loan. 

14 ‘‘(E) The option of the borrower to pay the 

15 interest on the loan while the loan is in 

16 deferment. 

17 ‘‘(F) For a first-time borrower of a loan or 

18 a borrower of a loan under this title who owes 

19 no principal or interest on such loan— 

20 ‘‘(i) a statement of the anticipated 

21 balance on the loan for which the borrower 

22 is receiving counseling under this sub23 section; 

24 ‘‘(ii) based on such anticipated bal25 ance, the anticipated monthly payment 


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1 amount under the standard repayment 

2 plan; and 

3 ‘‘(iii) an estimate of the projected 

4 monthly payment amount under the stand5 ard repayment plan, based on the average 

6 cumulative indebtedness of other borrowers 

7 of loans made under this title on behalf of 

8 dependent students who are in the same 

9 program of study as the student on whose 

10 behalf the borrower borrowed the loan. 

11 ‘‘(G) For a borrower with an outstanding 

12 balance of principal or interest due on such 

13 loan— 

14 ‘‘(i) a statement of the amount of 

15 such outstanding balance; 

16 ‘‘(ii) based on such outstanding bal17 ance, the anticipated monthly payment 

18 amount under the standard repayment 

19 plan; and 

20 ‘‘(iii) an estimate of the projected 

21 monthly payment amount under the stand22 ard repayment plan, based on— 

23 ‘‘(I) the outstanding balance de24 scribed in clause (i); 


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1 ‘‘(II) the anticipated outstanding 

2 balance on the loan for which the bor3 rower is receiving counseling under 

4 this subsection; and 

5 ‘‘(III) a projection for any other 

6 Federal Direct PLUS Loan made on 

7 behalf of the dependent student or 

8 Federal ONE Parent Loan that the 

9 borrower is reasonably expected to ac10 cept during the program of study of 

11 such student based on at least the ex12 pected increase in the cost of attend13 ance of such program. 

14 ‘‘(H) Debt management strategies that are 

15 designed to facilitate the repayment of such in16 debtedness. 

17 ‘‘(I) An explanation that the borrower has 

18 the options to prepay each loan, pay each loan 

19 on a shorter schedule, and change repayment 

20 plans. 

21 ‘‘(J) For each Federal Direct PLUS Loan 

22 and each Federal ONE Parent Loan for which 

23 the borrower is receiving counseling under this 

24 subsection, the contact information for the loan 


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1 servicer of the loan and a link to such servicer’s 

2 Website. 

3 ‘‘(6) ANNUAL LOAN ACCEPTANCE.—Prior to 

4 making the first disbursement of a loan made under 

5 this title (other than a Federal Direct Consolidation 

6 Loan or Federal ONE Consolidation Loan) to a bor7 rower for an award year, an eligible institution, 

8 shall, as part of carrying out the counseling require9 ments of this subsection for the loan, ensure that 

10 after receiving the applicable counseling under para11 graphs (2), (4), and (5) for the loan the borrower 

12 accepts the loan for such award year by— 

13 ‘‘(A) signing the master promissory note 

14 for the loan; 

15 ‘‘(B) signing and returning to the institu16 tion a separate written statement that affirma17 tively states that the borrower accepts the loan; 

18 or 

19 ‘‘(C) electronically signing an electronic 

20 version of the statement described in subpara21 graph (B).’’. 

22 (i) ONLINE COUNSELING TOOLS.—Section 485 (20 

23 U.S.C. 1092) is further amended by adding at the end 

24 the following: 

25 ‘‘(n) ONLINE COUNSELING TOOLS.— 


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1 ‘‘(1) IN GENERAL.—Beginning not later than 1 

2 year after the date of enactment of the PROSPER 

3 Act, the Secretary shall maintain— 

4 ‘‘(A) an online counseling tool that pro5 vides the exit counseling required under sub6 section (b) and meets the applicable require7 ments of this subsection; and 

8 ‘‘(B) an online counseling tool that pro9 vides the annual counseling required under sub10 section (l) and meets the applicable require11 ments of this subsection. 

12 ‘‘(2) REQUIREMENTS OF TOOLS.—In maintain13 ing the online counseling tools described in para14 graph (1), the Secretary shall ensure that each such 

15 tool is— 

16 ‘‘(A) consumer tested to ensure that the 

17 tool is effective in helping individuals under18 stand their rights and obligations with respect 

19 to borrowing a loan made this title or receiving 

20 a Federal Pell Grant; 

21 ‘‘(B) understandable to students receiving 

22 Federal Pell Grants and borrowers of loans 

23 made this title; and 

24 ‘‘(C) freely available to all eligible institu25 tions. 


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1 ‘‘(3) RECORD OF COUNSELING COMPLETION.— 

2 The Secretary shall— 

3 ‘‘(A) use each online counseling tool de4 scribed in paragraph (1) to keep a record of 

5 which individuals have received counseling using 

6 the tool, and notify the applicable institutions 

7 of the individual’s completion of such coun8 seling; 

9 ‘‘(B) in the case of a borrower who re10 ceives annual counseling for a loan made under 

11 this title using the tool described in paragraph 

12 (1)(B), notify the borrower by when the bor13 rower should accept, in a manner described in 

14 subsection (l)(6), the loan for which the bor15 rower has received such counseling; and 

16 ‘‘(C) in the case of a borrower described in 

17 subsection (b)(1)(B) at an institution that uses 

18 the online counseling tool described in para19 graph (1)(A) of this subsection, the Secretary 

20 shall attempt to provide the information de21 scribed in subsection (b)(1)(A) to the borrower 

22 through such tool.’’. 


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1 SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGI2 BILITY. 

3 Section 485E (21 U.S.C. 20 U.S.C. 1092f) is amend4 ed— 

5 (1) in subsection (b)— 

6 (A) in paragraph (2)— 

7 (i) by striking ‘‘junior year’’ and in8 serting ‘‘sophomore year’’; 

9 (ii) by striking ‘‘The Secretary shall 

10 ensure that’’ and inserting ‘‘The Secretary 

11 shall— 

12 ‘‘(A) ensure that’’; and 

13 (iii) by adding at the end the fol14 lowing: 

15 ‘‘(B) create an online platform for States, 

16 institutions of higher education, other organiza17 tions involved in college access and student fi18 nancial aid, secondary schools, and programs 

19 under this title that serve secondary school stu20 dents to share best practices on disseminating 

21 information under this section.’’; and 

22 (B) in paragraph (4)— 

23 (i) in the first sentence— 

24 (I) by striking ‘‘Not later than 

25 two years after the date of enactment 


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1 of the Higher Education Opportunity 

2 Act, the’’ and inserting ‘‘The’’; and 

3 (II) by inserting ‘‘continue to’’ 

4 before ‘‘implement’’; and 

5 (ii) in the second sentence, by striking 

6 ‘‘the Internet’’ and inserting ‘‘the Internet, 

7 including through social media’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(c) ONLINE ESTIMATOR TOOL.— 

10 ‘‘(1) IN GENERAL.—Not later than 1 year after 

11 the date of enactment of the PROSPER Act, the 

12 Secretary, in consultation with States, institutions of 

13 higher education, and other individuals with experi14 ence or expertise in student financial assistance ap15 plication processes, shall develop an early estimator 

16 tool to be available online and through a mobile ap17 plication, which— 

18 ‘‘(A) allows an individual to— 

19 ‘‘(i) enter basic financial and other 

20 relevant information; and 

21 ‘‘(ii) on the basis of such information, 

22 receive non-binding estimates of potential 

23 Federal grant, loan, or work study assist24 ance under this title for which a student 


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1 may be eligible upon completion of an ap2 plication form under section 483(a); 

3 ‘‘(B) with respect to each institution of 

4 higher education that participates in a program 

5 under this title selected by an individual for 

6 purposes of the estimator tool, provides the in7 dividual with the net price (as defined in section 

8 132) for the income category described in para9 graph (2) that is determined on the basis of the 

10 information under subparagraph (A)(i) of this 

11 paragraph entered by the individual; and 

12 ‘‘(C) includes a clear and conspicuous dis13 claimer that the amounts calculated using the 

14 estimator tool are estimates based on limited fi15 nancial information, and that— 

16 ‘‘(i) each such estimate— 

17 ‘‘(I) in the case of an estimate 

18 under subparagraph (A), is only an 

19 estimate and does not represent a 

20 final determination, or actual award, 

21 of financial assistance under this title; 

22 ‘‘(II) in the case of an estimate 

23 under subparagraph (B), is only an 

24 estimate and not a guarantee of the 


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1 actual amount that a student may be 

2 charged; 

3 ‘‘(III) shall not be binding on the 

4 Secretary or an institution of higher 

5 education; and 

6 ‘‘(IV) may change; and 

7 ‘‘(ii) a student must complete an ap8 plication form under section 483(a) in 

9 order to be eligible for, and receive, an ac10 tual financial aid award that includes Fed11 eral grant, loan, or work study assistance 

12 under this title. 

13 ‘‘(2) INCOME CATEGORIES.—The income cat14 egories for purposes of paragraph (1)(B) are as fol15 lows: 

16 ‘‘(A) $0 to $30,000. 

17 ‘‘(B) $30,001 to $48,000. 

18 ‘‘(C) $48,001 to $75,000. 

19 ‘‘(D) $75,001 to $110,000. 

20 ‘‘(E) $110,001 to $150,000. 

21 ‘‘(F) Over $150,000. 

22 ‘‘(3) CONSUMER TESTING.—In developing and 

23 maintaining the estimator tool described in para24 graph (1), the Secretary shall conduct consumer 

25 testing with appropriate persons, including current 


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1 and prospective college students, family members of 

2 such students, and other individuals with expertise 

3 in student financial assistance application processes 

4 and college access, to ensure that such tool is easily 

5 understandable by students and families and effec6 tive in communicating early aid eligibility. 

7 ‘‘(4) DATA STORAGE PROHIBITED.—In carrying 

8 out this subsection, the Secretary shall not keep, 

9 store, or warehouse any data inputted by individuals 

10 accessing the tool described in paragraph (1). 

11 ‘‘(d) PELL TABLE.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall de13 velop, and annually update at the beginning of each 

14 award year, the following electronic tables to be uti15 lized in carrying out this section and containing the 

16 information described in paragraph (2) of this sub17 section: 

18 ‘‘(A) An electronic table for dependent stu19 dents. 

20 ‘‘(B) An electronic table for independent 

21 students with dependents other than a spouse. 

22 ‘‘(C) An electronic table for independent 

23 students without dependents other than a 

24 spouse. 


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1 ‘‘(2) INFORMATION.—Each electronic table 

2 under paragraph (1), with respect to the category of 

3 students to which the table applies for the most re4 cently completed award year for which information 

5 is available, and disaggregated in accordance with 

6 paragraph (3), shall contain the following informa7 tion: 

8 ‘‘(A) The percentage of undergraduate stu9 dents attending an institution of higher edu10 cation on a full-time, full-academic year basis 

11 who file the financial aid form prescribed under 

12 section 483 for the award year and received, for 

13 their first academic year during such award 

14 year (and not for any additional payment peri15 ods after such first academic year), the fol16 lowing: 

17 ‘‘(i) A Federal Pell Grant equal to the 

18 maximum amount of a Federal Pell Grant 

19 award determined under section 401(b)(2) 

20 for such award year. 

21 ‘‘(ii) A Federal Pell Grant in an 

22 amount that is— 

23 ‘‘(I) less than the maximum 

24 amount described in clause (i); and 


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‘‘(II) not less than 3 1 ⁄4 of such 

2 maximum amount for such award 

3 year. 

4 ‘‘(iii) A Federal Pell Grant in an 

5 amount that is— 

‘‘(I) less than 3 6 ⁄4 of such max7 imum amount; and 

‘‘(II) not less than 1 8 ⁄2 of such 

9 maximum amount for such award 

10 year. 

11 ‘‘(iv) A Federal Pell Grant in an 

12 amount that is— 

‘‘(I) less than 1 13 ⁄2 of such max14 imum amount; and 

15 ‘‘(II) not less than the minimum 

16 Federal Pell Grant amount deter17 mined under section 401(b)(4) for 

18 such award year. 

19 ‘‘(B) The dollar amounts equal to— 

20 ‘‘(i) the maximum amount of a Fed21 eral Pell Grant award determined under 

22 section 401(b)(2) for an award year; 

‘‘(ii) 3 23 ⁄4 of such maximum amount; 

‘‘(iii) 1 24 ⁄2 of such maximum amount; 

25 and 


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1 ‘‘(iv) the minimum Federal Pell Grant 

2 amount determined under section 

3 401(b)(4) for such award year. 

4 ‘‘(C) A clear and conspicuous notice that— 

5 ‘‘(i) the Federal Pell Grant amounts 

6 listed in subparagraph (B) are for a pre7 vious award year, and such amounts and 

8 the requirements for awarding such 

9 amounts may be different for succeeding 

10 award years; and 

11 ‘‘(ii) the Federal Pell Grant amount 

12 for which a student may be eligible will be 

13 determined based on a number of factors, 

14 including enrollment status, once the stu15 dent completes an application form under 

16 section 483(a). 

17 ‘‘(D) A link to the early estimator tool de18 scribed in subsection (c) of this section, which 

19 includes an explanation that an individual may 

20 estimate a student’s potential Federal aid eligi21 bility under this title by accessing the estimator 

22 on the individual’s mobile phone or online. 

23 ‘‘(3) INCOME CATEGORIES.—The information 

24 provided under paragraph (2)(A) shall be 

25 disaggregated by the following income categories: 


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1 ‘‘(A) Less than $5,000. 

2 ‘‘(B) $5,000 to $9,999. 

3 ‘‘(C) $10,000 to $19,999. 

4 ‘‘(D) $20,000 to $29,999. 

5 ‘‘(E) $30,000 to $39,999. 

6 ‘‘(F) $40,000 to $49,999. 

7 ‘‘(G) $50,000 to $59,999. 

8 ‘‘(H) Greater than $59,999. 

9 ‘‘(e) LIMITATION.—The Secretary may not require a 

10 State to participate in the activities or disseminate the 

11 materials described in this section.’’. 

12 SEC. 490. DISTANCE EDUCATION DEMONSTRATION PRO13 GRAMS. 

14 Section 486 (20 U.S.C. 1093(b)) is repealed. 

15 SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREE16 MENTS. 

17 (a) PROGRAM PARTICIPATION AGREEMENTS.—Sec18 tion 487(a) (20 U.S.C. 1094(a)) is amended in the matter 

19 before paragraph (1) by striking ‘‘, except with respect 

20 to a program under subpart 4 of part A’’. 

21 (b) PERKINS CONFORMING CHANGES.—Section 

22 487(a)(5) (20 U.S.C. 1094(a)(5)) is amended by striking 

23 ‘‘and, in the case of an institution participating in a pro24 gram under part B or part E, to holders of loans made 

25 to the institution’s students under such parts’’. 


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1 (c) CERTIFICATIONS TO LENDERS.—Section 487(a) 

2 (20 U.S.C. 1094(a)) is amended by striking paragraph 

3 (6). 

4 (d) STATE GRANT ASSISTANCE.—Section 487(a)(9) 

5 (20 U.S.C. 1094(a)(9)) is amended by striking ‘‘in a pro6 gram under part B or D’’ and inserting ‘‘in a loan pro7 gram under this title’’. 

8 (e) DRUG ABUSE PREVENTION PROGRAMS.—Section 

9 487(a) (20 U.S.C. 1094(a)) is amended by striking para10 graph (10). 

11 (f) REPAYMENT SUCCESS PLAN.—Section 

12 487(a)(14) (20 U.S.C. 1094(a)(14)) is amended— 

13 (1) by striking ‘‘under part B or D’’ both 

14 places it appears and inserting ‘‘a loan program 

15 under this title’’; 

16 (2) by striking ‘‘Default Management Plan’’ 

17 both places it appears and inserting ‘‘Repayment 

18 Success Plan’’; and 

19 (3) in subparagraph (C), by striking ‘‘a cohort 

20 default rate in excess of 10 percent’’ both places it 

21 appears and inserting ‘‘any program with a loan re22 payment rate less than 65 percent’’. 

23 (g) COMMISSIONS TO THIRD-PARTY ENTITIES.—Sec24 tion 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended— 


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1 (1) by striking ‘‘The institution’’ and inserting 

2 ‘‘(A) Except as provided in subparagraph (B), the 

3 institution’’; and 

4 (2) by adding at the end the following new sub5 paragraph: 

6 ‘‘(B) An institution described in section 101 

7 may provide payment, based on— 

8 ‘‘(i) the amount of tuition generated by the 

9 institution from student enrollment, to a third10 party entity that provides a set of services to 

11 the institution that includes student recruit12 ment services, regardless of whether the third13 party entity is affiliated with an institution that 

14 provides educational services other than the in15 stitution providing such payment, if— 

16 ‘‘(I) the third-party entity is not affili17 ated with the institution providing such 

18 payment; 

19 ‘‘(II) the third-party entity does not 

20 make compensation payments to its em21 ployees that would be prohibited under 

22 subparagraph (A) if such payments were 

23 made by the institution; 

24 ‘‘(III) the set of services provided to 

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1 clude services in addition to student re2 cruitment services, and the institution does 

3 not pay the third-party entity solely or sep4 arately for student recruitment services 

5 provided by the third-party entity; and 

6 ‘‘(IV) any student recruitment infor7 mation available to the third-party entity, 

8 including personally identifiable informa9 tion, will not be used by, shared with, or 

10 sold to any other person or entity, includ11 ing any institution that is affiliated with 

12 the third-party entity, unless written con13 sent is provided by the student; and 

14 ‘‘(ii) students successfully completing their 

15 educational programs, to persons who were en16 gaged in recruiting such students, but solely to 

17 the extent that such payments— 

18 ‘‘(I) are obligated to be paid, and are 

19 actually paid, only after each student upon 

20 whom such payments are based has suc21 cessfully completed his or her educational 

22 program; and 

23 ‘‘(II) are paid only to employees of 

24 the institution or its parent company, and 

25 not to any other person or outside entity.’’. 


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1 (h) CLARIFICATION OF PROOF OF AUTHORITY TO

2 OPERATE WITHIN A STATE.—Section 487(a)(21) (20 

3 U.S.C. 1094(a)(21)) is amended by striking ‘‘within a 

4 State’’ and inserting ‘‘within a State in which it maintains 

5 a physical location’’. 

6 (i) DISTRIBUTION OF VOTER REGISTRATION

7 FORMS.—Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is 

8 amended to read as follows: 

9 ‘‘(23) The institution, if located in a State to 

10 which section 4(b) of the National Voter Registra11 tion Act of 1993 (42 U.S.C. 1973gg–2(b)) does not 

12 apply, will make a good faith effort to distribute, in13 cluding through electronic transmission, voter reg14 istration forms to students enrolled and physically in 

15 attendance at the institution.’’. 

16 (j) PROHIBITING COPYRIGHT INFRINGEMENT.—Sec17 tion 487(a)(29) (20 U.S.C. 1094(a)(29)) is amended to 

18 read as follows: 

19 ‘‘(29) The institution will have a policy prohib20 iting copyright infringement.’’. 

21 (k) MODIFICATIONS TO PREFERRED LENDER LIST

22 REQUIREMENTS.—Section 487(h)(1) (20 U.S.C. 

23 1094(h)(1)) is amended— 

24 (1) in subparagraph (A)— 


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1 (A) in clause (i), by inserting ‘‘and’’ after 

2 the semicolon; 

3 (B) by striking clause (ii); and 

4 (C) by redesignating clause (iii) as clause 

5 (ii); 

6 (2) in subparagraph (D), by inserting ‘‘and’’ 

7 after the semicolon; 

8 (3) in subparagraph (E), by striking ‘‘; and’’ 

9 and inserting a period; and 

10 (4) by striking subparagraph (C) and (F) and 

11 redesignating subparagraphs (D) and (E) as sub12 paragraphs (C) and (D), respectively. 

13 (l) ELIMINATION OF NON-TITLE IV REVENUE RE14 QUIREMENT.—Section 487 (20 U.S.C. 1094), is further 

15 amended— 

16 (1) in subsection (a), by striking paragraph 

17 (24); 

18 (2) by striking subsection (d); and 

19 (3) by redesignating subsections (e) through (j) 

20 as subsections (d) through (i), respectively. 

21 (m) CONFORMING AMENDMENTS.—The Higher Edu22 cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 

23 (1) in section 487(a) (20 U.S.C. 1094(a)), as 

24 amended by this section— 


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1 (A) by redesignating paragraphs (7) 

2 through (9), as paragraphs (6) through (8), re3 spectively; 

4 (B) by redesignating paragraphs (11) 

5 through (23) as paragraphs (9) through (21), 

6 respectively; and 

7 (C) by redesignating paragraphs (25) 

8 through (29) as paragraphs (22) through (26), 

9 respectively; 

10 (2) in section 487(c)(1)(A)(iii) (20 U.S.C. 

11 1094(c)(1)(A)(iii)), by striking ‘‘section 

12 102(a)(1)(C)’’ and inserting ‘‘section 102(a)(1)’’; 

13 and 

14 (3) in section 487(h)(4) (20 U.S.C. 

15 1094(h)(4)), as redesignated by subsection (l)(3), by 

16 striking ‘‘section 102’’ and inserting ‘‘section 101 or 

17 102’’. 

18 SEC. 492. REGULATORY RELIEF AND IMPROVEMENT. 

19 Section 487A (20 U.S.C. 1094a) is amended— 

20 (1) in subsection (a)— 

21 (A) in paragraph (1), by striking ‘‘The 

22 Secretary is authorized to’’ and inserting ‘‘The 

23 Secretary shall’’; and 


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1 (B) in paragraph (5), by inserting ‘‘at 

2 least once every two years’’ before the period at 

3 the end; and 

4 (2) in subsection (b)— 

5 (A) in paragraph (2)— 

6 (i) in the paragraph heading, by in7 serting ‘‘ANNUAL’’ before ‘‘REPORT’’; and 

8 (ii) by striking the first sentence and 

9 inserting ‘‘The Secretary shall review the 

10 experience, and rigorously evaluate the ac11 tivities, of all institutions participating as 

12 experimental sites and shall, on an annual 

13 basis, submit a report based on the review 

14 and evaluation findings to the authorizing 

15 committees.’’; 

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

18 ‘‘(A) IN GENERAL.— 

19 ‘‘(i) EXPERIMENTAL SITES.—The Sec20 retary is authorized periodically to select a 

21 limited number of institutions for vol22 untary participation as experimental sites 

23 to provide recommendations to the Sec24 retary and to the Congress on the impact 


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1 and effectiveness of proposed regulations 

2 or new management initiatives. 

3 ‘‘(ii) CONGRESSIONAL NOTICE AND

4 COMMENTS REQUIRED.— 

5 ‘‘(I) NOTICE.—Prior to announc6 ing a new experimental site and invit7 ing institutions to participate, the 

8 Secretary shall provide to the author9 izing committees a notice that shall 

10 include— 

11 ‘‘(aa) a description of the 

12 proposed experiment and ration13 ale for the proposed experiment; 

14 and 

15 ‘‘(bb) a list of the institu16 tional requirements the Secretary 

17 expects to waive and the legal au18 thority for such waivers. 

19 ‘‘(II) CONGRESSIONAL COM20 MENTS.—The Secretary shall not pro21 ceed with announcing a new experi22 mental site and inviting institutions to 

23 participate until 10 days after the 

24 Secretary— 


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1 ‘‘(aa) receives and addresses 

2 all comments from the author3 izing committees; and 

4 ‘‘(bb) responds to such com5 mittees in writing with an expla6 nation of how such comments 

7 have been addressed. 

8 ‘‘(iii) PROHIBITION.—The Secretary is 

9 not authorized to carry out clause (i) in 

10 any year in which an annual report de11 scribed in paragraph (2) relating to the 

12 previous year is not submitted to the au13 thorizing committees.’’; 

14 (C) in paragraph (4)(A), by striking ‘‘bien15 nial’’ and inserting ‘‘annual’’; and 

16 (D) by striking paragraph (1) and redesig17 nating paragraphs (2) through (4) as para18 graphs (1) through (3), respectively. 

19 SEC. 493. TRANSFER OF ALLOTMENTS. 

20 Section 488 (20 U.S.C. 1095) is amended— 

21 (1) by inserting ‘‘, as in effect on the day before 

22 the date of enactment of the PROSPER Act,’’ after 

23 ‘‘section 462’’; and 


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1 (2) by inserting ‘‘, as in effect on the day before 

2 the date of enactment of the PROSPER Act,’’ after 

3 ‘‘462’’. 

4 SEC. 494. ADMINISTRATIVE EXPENSES. 

5 Section 489(a) (20 U.S.C. 1096(a)) is amended— 

6 (1) in the second sentence— 

7 (A) by striking ‘‘subpart 3 of part A or 

8 part C,’’ and inserting ‘‘part C’’; and 

9 (B) by striking ‘‘or under part E of this 

10 title’’; and 

11 (2) in the third sentence— 

12 (A) by striking ‘‘its grants to students 

13 under subpart 3 of part A,’’; and 

14 (B) by striking ‘‘, and the principal 

15 amount of loans made during such fiscal year 

16 from its student loan fund established under 

17 part E, excluding the principal amount of any 

18 such loans which the institution has referred 

19 under section 463(a)(4)(B)’’. 

20 SEC. 494A. REPEAL OF ADVISORY COMMITTEE. 

21 Section 491 (20 U.S.C. 1098) is repealed. 

22 SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULE23 MAKING. 

24 Section 492 (20 U.S.C. 1098a) is amended— 


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1 (1) by redesignating subsections (c) and (d) as 

2 subsections (f) and (g), respectively; and 

3 (2) by striking subsections (a) and (b) and in4 serting the following: 

5 ‘‘(a) IN GENERAL.—The Secretary may, in accord6 ance with this section, issue such regulations as are rea7 sonably necessary to ensure compliance with this title. 

8 ‘‘(b) PUBLIC INVOLVEMENT.—The Secretary shall 

9 obtain public involvement in the development of proposed 

10 regulations for this title. Before carrying out a negotiated 

11 rulemaking process as described in subsection (d) or pub12 lishing in the Federal Register proposed regulations to 

13 carry out this title, the Secretary shall obtain advice and 

14 recommendations from individuals, and representatives of 

15 groups, involved in student financial assistance programs 

16 under this title, such as students, institutions of higher 

17 education, financial aid administrators, accrediting agen18 cies or associations, State student grant agencies, guar19 anty agencies, lenders, secondary markets, loan servicers, 

20 guaranty agency servicers, and collection agencies. 

21 ‘‘(c) MEETINGS AND ELECTRONIC EXCHANGE.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall provide 

23 for a comprehensive discussion and exchange of in24 formation concerning the implementation of this title 

25 through such mechanisms as regional meetings and 


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1 electronic exchanges of information. Such regional 

2 meetings and electronic exchanges of information 

3 shall be public and notice of such meetings and ex4 changes shall be provided to— 

5 ‘‘(A) the authorizing committees at least 

6 10 days prior to the notice to interested stake7 holders and the public described in subpara8 graph (B); and 

9 ‘‘(B) interested stakeholders and the public 

10 at least 30 days prior to such meetings and ex11 changes. 

12 ‘‘(2) CONSIDERATION.—The Secretary shall 

13 take into account the information received through 

14 such mechanisms in the development of proposed 

15 regulations and shall publish a summary of such in16 formation in the Federal Register prior to beginning 

17 the negotiated rulemaking process described in sub18 section (d). 

19 ‘‘(d) NEGOTIATED RULEMAKING PROCESS.— 

20 ‘‘(1) NEGOTIATED RULEMAKING REQUIRED.— 

21 All regulations pertaining to this title that are pro22 mulgated after the date of the enactment of this 

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1 ing the selection of the issues to be negotiated), un2 less the Secretary— 

3 ‘‘(A) determines that applying such a re4 quirement with respect to given regulations is 

5 impracticable, unnecessary, or contrary to the 

6 public interest (within the meaning of section 

7 553(b)(3)(B) of title 5, United States Code); 

8 ‘‘(B) publishes the basis for such deter9 mination in the Federal Register at the same 

10 time as the proposed regulations in question are 

11 first published; and 

12 ‘‘(C) includes the basis for such determina13 tion in the congressional notice under sub14 section (e)(1). 

15 ‘‘(2) CONGRESSIONAL NOTICE AND COMMENTS

16 REQUIRED.— 

17 ‘‘(A) NOTICE.—The Secretary shall pro18 vide to the Committee on Education and the 

19 Workforce of the House of Representatives and 

20 the Committee on Health, Education, Labor, 

21 and Pensions of the Senate notice of the intent 

22 establish a negotiated rulemaking committee 

23 that shall include— 

24 ‘‘(i) the need to issue regulations; 


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1 ‘‘(ii) the statutory and legal authority 

2 of the Secretary to regulate the issue; 

3 ‘‘(iii) the summary of public com4 ments described in paragraph (2) of sub5 section (c); 

6 ‘‘(iv) the anticipated burden, including 

7 the time, cost, and paperwork burden, the 

8 regulations will have on institutions of 

9 higher education and other entities that 

10 may be impacted by the regulations; and 

11 ‘‘(v) any regulations that will be re12 pealed when the new regulations are 

13 issued. 

14 ‘‘(B) CONGRESSIONAL COMMENTS.—The 

15 Secretary shall not proceed with the negotiated 

16 rulemaking process— 

17 ‘‘(i) until 10 days after the Sec18 retary— 

19 ‘‘(I) receives and addresses all 

20 comments from the authorizing com21 mittees; and 

22 ‘‘(II) responds to the authorizing 

23 committees in writing with an expla24 nation of how such comments have 

25 been addressed; or 


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1 ‘‘(ii) until 60 days after providing the 

2 notice required under subparagraph (A) if 

3 the Secretary has not received comments 

4 under clause (i). 

5 ‘‘(3) PROCESS.—After obtaining advice and rec6 ommendations under subsections (b) and (c), and 

7 before publishing proposed regulations, the Secretary 

8 shall— 

9 ‘‘(A) establish a negotiated rulemaking 

10 process; 

11 ‘‘(B) select individuals to participate in 

12 such process— 

13 ‘‘(i) from among individuals or groups 

14 that provided advice and recommendations 

15 under subsections (b) and (c), including— 

16 ‘‘(I) representatives of such 

17 groups from Washington, DC; and 

18 ‘‘(II) other industry participants; 

19 and 

20 ‘‘(ii) with demonstrated expertise or 

21 experience in the relevant subjects under 

22 negotiation, reflecting the diversity in the 

23 industry, representing both large and small 

24 participants, as well as individuals serving 

25 local areas and national markets; 


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1 ‘‘(C) prepare a draft of proposed policy op2 tions, which shall take into account comments 

3 received from both the public and the author4 izing committees, that shall be provided to the 

5 individuals selected by the Secretary under sub6 paragraph (B) and such authorizing committees 

7 not less than 15 days before the first meeting 

8 under such process; and 

9 ‘‘(D) ensure that the negotiation process is 

10 conducted in a timely manner in order that the 

11 final regulations may be issued by the Secretary 

12 within the 360-day period described in section 

13 437(e) of the General Education Provisions Act 

14 (20 U.S.C. 1232(e)). 

15 ‘‘(4) AGREEMENTS AND RECORDS.— 

16 ‘‘(A) AGREEMENTS.—All published pro17 posed regulations developed through the nego18 tiation process under this subsection shall con19 form to all agreements resulting from such 

20 process unless the Secretary reopens the nego21 tiated rulemaking process. 

22 ‘‘(B) RECORDS.—The Secretary shall en23 sure that a clear and reliable record is main24 tained of agreements reached during a negotia25 tion process under this subsection. 


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1 ‘‘(e) PROPOSED RULEMAKING.—If the Secretary de2 termines pursuant to subsection (d)(1) that a negotiated 

3 rulemaking process is impracticable, unnecessary, or con4 trary to the public interest (within the meaning of section 

5 553(b)(3)(B) of title 5, United States Code), or the indi6 viduals selected to participate in the process under sub7 section (d)(3)(B) fail to reach unanimous agreement on 

8 an issue being negotiated, the Secretary may propose reg9 ulations subject to subsection (f). 

10 ‘‘(f) REQUIREMENTS FOR PROPOSED REGULA11 TIONS.—Regulations proposed pursuant to subsection (e) 

12 shall meet the following procedural requirements: 

13 ‘‘(1) CONGRESSIONAL NOTICE.—Regardless of 

14 whether congressional notice was submitted under 

15 subsection (d)(2), the Secretary shall provide to the 

16 Committee on Education and the Workforce of the 

17 House of Representatives and the Committee on 

18 Health, Education, Labor, and Pensions of the Sen19 ate notice that shall include— 

20 ‘‘(A) a copy of the proposed regulations; 

21 ‘‘(B) the need to issue regulations; 

22 ‘‘(C) the statutory and legal authority of 

23 the Secretary to regulate the issue; 

24 ‘‘(D) the anticipated burden, including the 

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1 tions will have on institutions of higher edu2 cation and other entities that may be impacted 

3 by the regulations; and 

4 ‘‘(E) any regulations that will be repealed 

5 when the new regulations are issued. 

6 ‘‘(2) CONGRESSIONAL COMMENTS.—The Sec7 retary may not proceed with the rulemaking proc8 ess— 

9 ‘‘(A) until 10 days after the Secretary— 

10 ‘‘(i) receives and addresses all com11 ments from the authorizing committees; 

12 and 

13 ‘‘(ii) responds to the authorizing com14 mittees in writing with an explanation of 

15 how such comments have been addressed; 

16 or 

17 ‘‘(B) until 60 days after providing the no18 tice required under paragraph (1) if the Sec19 retary has not received comments under sub20 paragraph (A). 

21 ‘‘(3) COMMENT AND REVIEW PERIOD.—The 

22 comment and review period for the proposed regula23 tion shall be 90 days unless an emergency requires 

24 a shorter period, in which case such period shall be 

25 not less than 45 days and the Secretary shall— 


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1 ‘‘(A) designate the proposed regulation as 

2 an emergency, with an explanation of the emer3 gency, in the notice to the Congress under 

4 paragraph (1); 

5 ‘‘(B) publish the length of the comment 

6 and review period in such notice and in the 

7 Federal Register; and 

8 ‘‘(C) conduct immediately thereafter re9 gional meetings to review such proposed regula10 tion before issuing any final regulation. 

11 ‘‘(4) INDEPENDENT ASSESSMENT.—No regula12 tion shall be made final after the comment and re13 view period until the Secretary has published in the 

14 Federal Register an independent assessment (which 

15 shall include a representative sampling of institu16 tions of higher education based on sector, enroll17 ment, urban, suburban, or rural character, and 

18 other factors impacted by the regulation) of— 

19 ‘‘(A) the burden, including the time, cost, 

20 and paperwork burden, the final regulation will 

21 impose on institutions and other entities that 

22 may be impacted by the regulation; 

23 ‘‘(B) an explanation of how the entities de24 scribed in subparagraph (A) may cover the cost 


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1 of the burden assessed under such subpara2 graph; and 

3 ‘‘(C) the regulation, including a thorough 

4 assessment, based on the comments received 

5 during the comment and review period under 

6 paragraph (3), of whether the rule is finan7 cially, operationally, and educationally viable at 

8 the institutional level.’’. 

9 SEC. 494C. DEFERRAL OF LOAN REPAYMENT FOLLOWING 

10 ACTIVE DUTY. 

11 Section 493D(a) (20 U.S.C. 1098f) is amended, by 

12 striking ‘‘or section 464(c)(2)(A)(iii)’’ and inserting ‘‘, 

13 section 464(c)(2)(A)(iii) (as in effect on the day before 

14 the date of enactment of the PROSPER Act and pursuant 

15 to section 461(a)), or section 469A(a)(2)(A)(iii)’’. 

16 SEC. 494D. CONTRACTS; MATCHING PROGRAM. 

17 (a) CONTRACTS FOR SUPPLIES AND SERVICES.— 

18 (1) IN GENERAL.—Part G of title IV (20 

19 U.S.C. 1088 et seq.), as amended by this part, is 

20 further amended by adding at the end the following: 

21 ‘‘SEC. 493E. CONTRACTS. 

22 ‘‘(a) CONTRACTS FOR SUPPLIES AND SERVICES.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall, to the 

24 extent practicable, award contracts for origination, 

25 servicing, and collection described in subsection (b). 


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1 In awarding such contracts, the Secretary shall en2 sure that such services and supplies are provided at 

3 competitive prices. 

4 ‘‘(2) ENTITIES.—The entities with which the 

5 Secretary may enter into contracts shall include en6 tities qualified to provide such services and supplies 

7 and will comply with the procedures applicable to 

8 the award of such contracts. In the case of awarding 

9 contracts for the origination, servicing, and collec10 tion of loans under parts D and E, the Secretary 

11 shall enter into contracts with entities that have ex12 tensive and relevant experience and demonstrated ef13 fectiveness. The entities with which the Secretary 

14 may enter into such contracts may include, where 

15 practicable, agencies with agreements with the Sec16 retary under sections 428(b) and (c), if such agen17 cies meet the qualifications as determined by the 

18 Secretary under this subsection and if those agencies 

19 have such experience and demonstrated effective20 ness. In awarding contracts to such State agencies, 

21 the Secretary shall, to the extent practicable and 

22 consistent with the purposes of parts D and E, give 

23 consideration to State agencies with a history of 

24 high quality performance to perform services for in25 stitutions of higher education within their State. 


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1 ‘‘(3) ALLOCATIONS.— 

2 ‘‘(A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the Secretary shall allocate 

4 new borrower loan accounts to entities awarded 

5 a contract under this section on the basis of— 

6 ‘‘(i) the performance of each such en7 tity compared to other such entities per8 forming similar work using common per9 formance metrics, as determined by the 

10 Secretary; and 

11 ‘‘(ii) the capacity of each such entity 

12 compared to other such entities performing 

13 similar work to service new and existing 

14 borrower loan accounts. 

15 ‘‘(B) FEDERAL ONE CONSOLIDATION

16 LOANS.—Any borrower who receives a Federal 

17 ONE Consolidation Loan may select the entity 

18 awarded a contract under this section to service 

19 such loan. 

20 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

21 this section shall be construed as a limitation of the 

22 authority of any State agency to enter into an agree23 ment for the purposes of this section as a member 

24 of a consortium of State agencies. 


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1 ‘‘(b) CONTRACTS FOR ORIGINATION, SERVICING, AND

2 DATA SYSTEMS.—The Secretary may enter into contracts 

3 for— 

4 ‘‘(1) the servicing and collection of loans made 

5 or purchased under part D or E; 

6 ‘‘(2) the establishment and operation of one or 

7 more data systems for the maintenance of records 

8 on all loans made or purchased under part D or E; 

9 and 

10 ‘‘(3) such other aspects of the direct student 

11 loan program under part D or E necessary to ensure 

12 the successful operation of the program. 

13 ‘‘(c) COMMON PERFORMANCE MANUAL.— 

14 ‘‘(1) CONSULTATION.—Not later than 180 days 

15 after the date of enactment of the PROSPER Act 

16 and biannually thereafter, the Secretary shall con17 sult (in writing and in person) with entities awarded 

18 contracts for loan servicing under section 456 (as in 

19 effect on the day before the date of enactment of the 

20 PROSPER Act) and this section, to the extent prac21 ticable, to develop and update as necessary, a guid22 ance manual for entities awarded contracts for loan 

23 servicing under this section that provides such enti24 ties with best practices to ensure borrowers receive 

25 adequate and consistent service from such entities. 


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1 ‘‘(2) PROVISION OF MANUAL.—The Secretary 

2 shall provide the most recent guidance manual devel3 oped and updated under paragraph (1) to each enti4 ty awarded a contract for loan serving under this 

5 section. 

6 ‘‘(3) ANNUAL REPORT.—The Secretary shall 

7 provide to the authorizing committees a report, on 

8 a annual basis, detailing the consultation required 

9 under paragraph (1). 

10 ‘‘(d) FEDERAL PREEMPTION.— 

11 ‘‘(1) DISCLOSURE AND COMMUNICATIONS.—An 

12 entity awarded a contract under this section for the 

13 origination, servicing, and collection of loans made 

14 under this title shall not be subject to any law or 

15 other requirement of any State or political subdivi16 sion of a State with respect to— 

17 ‘‘(A) disclosure requirements; or 

18 ‘‘(B) requirements or restrictions on the 

19 time, quantity, or frequency of communications 

20 with borrowers, endorsers, or references with 

21 respect to such loans. 

22 ‘‘(2) SERVICING AND COLLECTION.—The re23 quirements of this section with respect to the serving 

24 or collection of loans shall preempt any law or other 

25 requirement of a State or political subdivision of a 


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1 State to the extent that such law or other require2 ment would, in the absence of this subsection, apply 

3 to a loan servicer, or the servicing or collection, of 

4 a loan made under this title. 

5 ‘‘(3) LIMITATION.—This subsection shall not 

6 have any legal effect on any other preemption provi7 sion under Federal law with respect to this title.’’. 

8 (2) CONFORMING AMENDMENT.—Section 456 

9 (20 U.S.C. 1087f) is repealed. 

10 (b) MATCHING PROGRAM.—Part G of section IV (20 

11 U.S.C. 1088 et seq.), as amended by subsection (a), is 

12 further amended by adding at the end the following: 

13 ‘‘SEC. 493F. MATCHING PROGRAM. 

14 ‘‘(a) IN GENERAL.—The Secretary of Education and 

15 the Secretary of Veterans Affairs shall carry out a com16 puter matching program under which the Secretary of 

17 Education identifies, on at least a quarterly basis, bor18 rowers— 

19 ‘‘(1) who have been assigned a disability rating 

20 of 100 percent (or a combination of ratings equaling 

21 100 percent or more) by the Secretary of Veterans 

22 Affairs for a service-connected disability (as defined 

23 in section 101 of title 38, United States Code); or 

24 ‘‘(2) who have been determined by the Sec25 retary of Veterans Affairs to be unemployable due to 


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1 a service-connected condition, as described in section 

2 437(a)(2). 

3 ‘‘(b) BORROWER NOTIFICATION.—With respect to 

4 each borrower who is identified under subsection (a), the 

5 Secretary shall, as soon as practicable after such identi6 fication— 

7 ‘‘(1) notify the borrower of the borrower’s eligi8 bility for loan discharge under section 437(a); and 

9 ‘‘(2) provide the borrower with simple instruc10 tions on how to apply for such loan discharge, in11 cluding an explanation that the borrower shall not 

12 be required to provide any documentation of the bor13 rower’s disability rating to receive such discharge. 

14 ‘‘(c) DATA COLLECTION AND REPORT TO CON15 GRESS.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall annu17 ally collect and submit to the Committees on Edu18 cation and the Workforce and Veterans’ Affairs of 

19 the House of Representatives and the Committees 

20 on Health, Education, Labor, and Pensions and Vet21 erans Affairs of the Senate, data about borrowers 

22 applying for and receiving loan discharges under sec23 tion 437(a), which shall be disaggregated in the 

24 manner described in paragraph (2) and include the 

25 following: 


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1 ‘‘(A) The number of applications received 

2 under section 437(a). 

3 ‘‘(B) The number of such applications that 

4 were approved. 

5 ‘‘(C) The number of loan discharges that 

6 were completed under section 437(a). 

7 ‘‘(2) DISAGGREGATION.—The data collected 

8 under paragraph (1) shall be disaggregated— 

9 ‘‘(A) by borrowers who applied under this 

10 section for loan discharges under section 

11 437(a); 

12 ‘‘(B) by borrowers who received loan dis13 charges as a result of applying for such dis14 charges under this section; 

15 ‘‘(C) by borrowers who applied for loan 

16 discharges under section 437(a)(2); and 

17 ‘‘(D) by borrowers who received loan dis18 charges as a result of applying for such dis19 charges under section 437(a)(2). 

20 ‘‘(d) NOTIFICATION TO BORROWERS.—The Secretary 

21 shall notify each borrower whose liability on a loan has 

22 been discharged under section 437(a) that the liability on 

23 the loan has been so discharged.’’. 


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1 PART H—PROGRAM INTEGRITY 

2 SEC. 495. REPEAL OF AND PROHIBITION ON STATE AU3 THORIZATION REGULATIONS. 

4 (a) REGULATIONS REPEALED.—The following regu5 lations relating to State authorization (including any sup6 plements or revisions to such regulations) are repealed and 

7 shall have no force or effect: 

8 (1) The final regulations published by the De9 partment of Education in the Federal Register on 

10 October 29, 2010 (75 Fed. Reg. 66832 et seq.). 

11 (2) The final regulations published by the De12 partment of Education in the Federal Register on 

13 December 19, 2016 (81 Fed. Reg. 92232 et seq). 

14 (b) PROHIBITION ON STATE AUTHORIZATION REGU15 LATIONS.—Section 495 (20 U.S.C. 1099a) is amended by 

16 striking subsection (b) and inserting the following: 

17 ‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each insti18 tution of higher education shall provide evidence to the 

19 Secretary that the institution has authority to operate 

20 within each State in which it maintains a physical location 

21 at the time the institution is certified under subpart 3. 

22 ‘‘(c) TREATMENT OF RELIGIOUS INSTITUTIONS.—An 

23 institution shall be treated as legally authorized to operate 

24 educational programs beyond secondary education in a 

25 State under section 101(a)(2) if the institution is— 


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1 ‘‘(1) recognized as a religious institution by the 

2 State; and 

3 ‘‘(2) because of the institution’s status as a reli4 gious institution, the institution is exempt from any 

5 provision of State law that requires institutions to be 

6 authorized by the State to operate educational pro7 grams beyond secondary education. 

8 ‘‘(d) PROHIBITION ON STATE AUTHORIZATION REG9 ULATIONS.—The Secretary shall not promulgate or en10 force any regulation or rule not in effect on the date of 

11 enactment of the PROSPER Act for any purpose under 

12 this Act with respect to the State authorization for institu13 tions of higher education to operate within a State.’’. 

14 SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR AS15 SOCIATION. 

16 Section 496 (20 U.S.C. 1099b) is amended— 

17 (1) by striking ‘‘section 102’’ each place it ap18 pears and inserting ‘‘section 101’’; 

19 (2) in subsection (a)— 

20 (A) in paragraph (2), by amending sub21 paragraph (A) to read as follows: 

22 ‘‘(A) for the purpose of participation in 

23 programs under this Act or other programs ad24 ministered by the Department of Education or 

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1 bership of institutions of higher education or 

2 other entities and has as a principal purpose 

3 the accrediting of institutions of higher edu4 cation or programs;’’; 

5 (B) in paragraph (3)— 

6 (i) in subparagraph (A)— 

7 (I) by striking ‘‘subparagraph 

8 (A)(i)’’ and inserting ‘‘subparagraph 

9 (A) or (C)’’; 

10 (II) by striking ‘‘separate’’ and 

11 inserting ‘‘separately incorporated’’; 

12 and 

13 (III) by adding ‘‘or’’ at the end; 

14 (ii) by striking ‘‘or’’ at the end of sub15 paragraph (B); and 

16 (iii) by striking subparagraph (C); 

17 (C) in paragraph (4)— 

18 (i) in subparagraph (A)— 

19 (I) by inserting ‘‘as defined by 

20 the institution’’ after ‘‘religious mis21 sions’’; 

22 (II) by striking ‘‘, including dis23 tance education or correspondence 

24 courses or programs,’’; and 


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1 (III) by striking ‘‘and’’ at the 

2 end; 

3 (ii) by striking subparagraph (B) and 

4 inserting the following: 

5 ‘‘(B) such agency or association dem6 onstrates the ability to review, evaluate, and as7 sess the quality of any instruction delivery 

8 model or method such agency or association has 

9 or seeks to include within its scope of recogni10 tion, without giving preference to or differen11 tially treating a particular instruction delivery 

12 model or method offered by an institution of 

13 higher education or program; and 

14 ‘‘(C) if such agency or association has or 

15 seeks to include within its scope of recognition 

16 the evaluation of the quality of competency17 based education programs, such agency or asso18 ciation shall, in addition to meeting the other 

19 requirements of this subpart, demonstrate to 

20 the Secretary that, with respect to competency21 based education programs— 

22 ‘‘(i) the agency or association’s stand23 ards include a process for determining 

24 whether an institution or program requires 


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1 the demonstration of competencies that 

2 are— 

3 ‘‘(I) capable of being validly and 

4 reliably assessed; and 

5 ‘‘(II) appropriate in scope and 

6 rigor for the award of the relevant 

7 certificate, degree, or other recognized 

8 educational credential; and 

9 ‘‘(ii) the agency or association re10 quires that an institution or program dem11 onstrate that it— 

12 ‘‘(I) has identified competencies 

13 that meet the requirements of sub14 clauses (I) and (II) of clause (i); 

15 ‘‘(II) requires students to dem16 onstrate mastery of each relevant 

17 competency in order to earn the cer18 tificate, degree, or credential; 

19 ‘‘(III) has the administrative ca20 pacity and expertise that will ensure 

21 the validity and reliability of assess22 ments of competencies and that the 

23 institution follows good practices in 

24 assessment and measurement; 


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1 ‘‘(IV) provides sufficient faculty 

2 instruction, educational content, ac3 tivities, and resources to enable stu4 dents to learn or develop what is re5 quired to demonstrate or attain mas6 tery of competencies and that such re7 quirements are consistent with the 

8 claims that the institution makes for 

9 the qualifications of graduates; and 

10 ‘‘(V) has defined an academic 

11 year in accordance with section 

12 481(a)(3);’’; 

13 (D) by amending paragraph (5) to read as 

14 follows: 

15 ‘‘(5) the standards for accreditation of the 

16 agency or association assess the institution’s success 

17 with respect to student learning and educational out18 comes in relation to the institution’s mission, which 

19 may include different standards for different institu20 tions or programs, except that the standards shall 

21 include consideration of student learning and edu22 cational outcomes in relation to expected measures 

23 of student learning and educational outcomes, which 

24 at the agency’s or association’s discretion are estab25 lished— 


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1 ‘‘(A) by the agency or association; or 

2 ‘‘(B) by the institution or program, at the 

3 institution or program level, as the case may be, 

4 if the institution or program— 

5 ‘‘(i) defines expected student learning 

6 goals and educational outcomes; 

7 ‘‘(ii) measures and evaluates student 

8 learning, educational outcomes, and, if ap9 propriate, other outcomes of the students 

10 who complete their program of study; 

11 ‘‘(iii) uses information about student 

12 learning, educational outcomes, and, if ap13 propriate, other outcomes, to improve the 

14 institution or program; and 

15 ‘‘(iv) makes such information avail16 able to appropriate constituencies;’’; and 

17 (E) in paragraph (8), by striking ‘‘, upon 

18 request,’’; 

19 (3) in subsection (b)— 

20 (A) in the subsection heading, by striking 

21 ‘‘SEPARATE’’ and inserting ‘‘SEPARATELY IN22 CORPORATED’’; 

23 (B) in the matter preceding paragraph (1), 

24 by striking ‘‘separate’’ and inserting ‘‘sepa25 rately incorporated’’; 


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1 (C) in paragraph (2), by inserting ‘‘who 

2 shall represent business’’ after ‘‘one such public 

3 member’’; and 

4 (D) in paragraph (4), by inserting before 

5 the period at the end ‘‘and is maintained sepa6 rately from any such entity or organization’’; 

7 (4) in subsection (c)— 

8 (A) in paragraph (1)— 

9 (i) by inserting ‘‘(which may vary 

10 based on institutional risk consistent with 

11 policies promulgated by the agency or asso12 ciation to determine such risk and interval 

13 frequency as allowed under subsection 

14 (p))’’ after ‘‘intervals’’; and 

15 (ii) by striking ‘‘distance education’’ 

16 and inserting ‘‘competency-based edu17 cation’’; 

18 (B) by striking paragraph (5) and redesig19 nating paragraphs (2), (3), and (4) as para20 graphs (3), (4), and (5), respectively; 

21 (C) by inserting after paragraph (1), the 

22 following: 

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1 plishing their missions with respect to the student 

2 learning and educational outcome goals established 

3 under subsection (a)(5) and— 

4 ‘‘(A) as appropriate, uses information such 

5 as student loan default or repayment rates, re6 tention or graduation rates, evidence of student 

7 learning, financial data, and other indicators to 

8 identify such institutions; 

9 ‘‘(B) not less than annually, evaluates the 

10 extent to which those identified institutions or 

11 programs continue to be in compliance with the 

12 agency or association’s standards; and 

13 ‘‘(C) as appropriate, requires the institu14 tion or program to address deficiencies and en15 sure that any plan to address and remedy defi16 ciencies is successfully implemented.’’; 

17 (D) in paragraph (4)(A), as so redesig18 nated, by striking ‘‘487(f)’’ and inserting 

19 ‘‘487(e)’’; 

20 (E) by amending paragraph (5), as so re21 designated, to read as follows: 

22 ‘‘(5) establishes and applies or maintains poli23 cies which ensure that any substantive change to the 

24 educational mission, program, or programs of an in25 stitution after the agency or association has granted 


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1 the institution accreditation or preaccreditation sta2 tus does not adversely affect the capacity of the in3 stitution to continue to meet the agency’s or associa4 tion’s standards for such accreditation or 

5 preaccreditation status, which shall include policies 

6 that— 

7 ‘‘(A) require the institution to obtain the 

8 agency’s or association’s approval of the sub9 stantive change before the agency or association 

10 includes the change in the scope of the institu11 tion’s accreditation or preaccreditation status; 

12 and 

13 ‘‘(B) define substantive change to include, 

14 at a minimum— 

15 ‘‘(i) any change in the established 

16 mission or objectives of the institution; 

17 ‘‘(ii) any change in the legal status, 

18 form of control, or ownership of the insti19 tution; 

20 ‘‘(iii) the addition of courses, pro21 grams of instruction, training, or study, or 

22 credentials or degrees that represent a sig23 nificant departure from the courses, pro24 grams, or credentials or degrees that were 


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1 offered at time the agency or association 

2 last evaluated the institution; or 

3 ‘‘(iv) the entering into a contract 

4 under which an institution or organization 

5 not certified to participate programs under 

6 title IV provides a portion of an accredited 

7 institution’s educational program that is 

8 greater than 25 percent;’’; 

9 (F) in paragraph (7)— 

10 (i) in the matter preceding subpara11 graph (A), by inserting ‘‘, on the agency’s 

12 or association’s website,’’ after ‘‘public’’; 

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

14 before the semicolon at the end the fol15 lowing: ‘‘, and a summary of why such ac16 tion was taken or such placement was 

17 made’’; 

18 (G) in paragraph (8), by striking ‘‘and’’ at 

19 the end; 

20 (H) in paragraph (9), by striking the pe21 riod at the end and inserting a semicolon; and 

22 (I) by adding at the end the following: 

23 ‘‘(10) makes publicly available, on the agency 

24 or association’s website, a list of the institutions of 

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1 ciation, which includes, with respect to each institu2 tion on the list–— 

3 ‘‘(A) the year accreditation was granted; 

4 ‘‘(B) the most recent date of a comprehen5 sive evaluation of the institution under para6 graph (1); and 

7 ‘‘(C) the anticipated date of the next such 

8 evaluation; and 

9 ‘‘(11) confirms, as a part of the agency’s or as10 sociation’s review for accreditation or reaccredita11 tion, that the institution’s website includes consumer 

12 information described section paragraphs (1) and 

13 (2) of section 132(d).’’; 

14 (5) in subsection (e)— 

15 (A) by striking ‘‘The Secretary’’ and in16 serting the following: 

17 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

18 the Secretary’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

21 apply in the case of an institution described in sub22 section (j).’’. 

23 (6) by striking subsection (h) and inserting the 

24 following: 


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1 ‘‘(h) CHANGE OF ACCREDITING AGENCY OR ASSOCIA2 TION.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall not 

4 recognize the accreditation of any otherwise eligible 

5 institution of higher education if the institution is in 

6 the process of changing its accrediting agency or as7 sociation and is subject to one or more of the fol8 lowing actions, unless the eligible institution submits 

9 to the Secretary materials demonstrating a reason10 able cause for changing the accrediting agency or as11 sociation: 

12 ‘‘(A) A pending or final action brought by 

13 a State agency to suspend, revoke, withdraw, or 

14 terminate the institution’s legal authority to 

15 provide postsecondary education in the State. 

16 ‘‘(B) A decision by a recognized accred17 iting agency or association to deny accreditation 

18 or preaccreditation to the institution. 

19 ‘‘(C) A pending or final action brought by 

20 a recognized accrediting agency or association 

21 to suspend, revoke, withdraw, or terminate the 

22 institution’s accreditation or preaccreditation. 

23 ‘‘(D) Probation or an equivalent status im24 posed on the institution by a recognized accred25 iting agency or association. 


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1 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

2 this subsection shall be construed to restrict the 

3 ability of an institution of higher education not sub4 ject to an action described in paragraph (1) and oth5 erwise in good standing to change accrediting agen6 cies or associations without the approval of the Sec7 retary as long as the institution notifies the Sec8 retary of the change.’’; 

9 (7) by striking subsection (k) and inserting the 

10 following: 

11 ‘‘(k) RELIGIOUS INSTITUTION RULE.— 

12 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

13 (j), the Secretary shall allow an institution that has 

14 had its accreditation withdrawn, revoked, or other15 wise terminated, or has voluntarily withdrawn from 

16 an accreditation agency, to remain certified as an in17 stitution of higher education under section 101 and 

18 subpart 3 of this part for a period sufficient to allow 

19 such institution to obtain alternative accreditation, if 

20 the Secretary determines that the withdrawal, rev21 ocation, or termination— 

22 ‘‘(A) is related to the religious mission or 

23 affiliation of the institution; and 

24 ‘‘(B) is not related to the accreditation cri25 teria provided for in this section. 


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1 ‘‘(2) REQUIREMENTS.—For purposes of this 

2 section the following shall apply: 

3 ‘‘(A) The religious mission of an institu4 tion may be reflected in the institution’s reli5 gious tenets, beliefs, or teachings, and any poli6 cies or decisions related to such tenets, beliefs, 

7 or teachings (including any policies or decisions 

8 concerning housing, employment, student ad9 mission, continuing enrollment, graduation, cur10 riculum, or self-governance. 

11 ‘‘(B) An agency or association’s standard 

12 fails to respect an institution’s religious mission 

13 when the institution determines that the stand14 ard induces, pressures, or coerces the institu15 tion to act contrary to, or to refrain from acting 

16 in support of, any aspect of its religious mis17 sion.’’; 

18 (8) in subsection (n)(3), by striking ‘‘distance 

19 education courses or programs’’ each place it ap20 pears and inserting ‘‘competency-based education 

21 programs’’; 

22 (9) in subsection (o), by inserting before the pe23 riod at the end the following: ‘‘, or with respect to 

24 the policies and procedures of an accreditation agen25 cy or association described in paragraph (2) or (5) 


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1 of subsection (c) or how the agency or association 

2 carries out such policies and procedures’’; 

3 (10) by striking subsections (p) and (q); and 

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

5 ‘‘(p) RISK-BASED OR DIFFERENTIATED REVIEW

6 PROCESSES OR PROCEDURES.— 

7 ‘‘(1) IN GENERAL.—Notwithstanding any other 

8 provision of law (including subsection (a)(4)(A)), an 

9 accrediting agency or association may establish, with 

10 the involvement of its membership, risk-based or dif11 ferentiated review processes or procedures for as12 sessing compliance with the accrediting agency or 

13 association’s standards, including policies related to 

14 substantive change and award of accreditation 

15 statuses, for institutions of higher education or pro16 grams that have demonstrated exceptional past per17 formance with respect to meeting the accrediting 

18 agency or association’s standards. 

19 ‘‘(2) PROHIBITION.—Risk-based or differen20 tiated review processes or procedures shall not dis21 criminate against, or otherwise preclude, institutions 

22 of higher education based on institutional sector or 

23 category, including an institution of higher edu24 cation’s tax status. 


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1 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

2 this subsection shall be construed to permit the Sec3 retary to establish any criterion that specifies, de4 fines, or prescribes an accrediting agency or associa5 tion’s risk-based or differentiated review process or 

6 procedure. 

7 ‘‘(q) WAIVER.—The Secretary shall establish a proc8 ess through which an agency or association may seek to 

9 have a requirement of this subpart waived, if such agency 

10 or association— 

11 ‘‘(1) demonstrates that such waiver is necessary 

12 to enable an institution of higher education or pro13 gram accredited by the agency or association to im14 plement innovative practices intended to— 

15 ‘‘(A) reduce administrative burdens to the 

16 institution or program without creating costs 

17 for the taxpayer; or 

18 ‘‘(B) improve the delivery of services to 

19 students, improve instruction or learning out20 comes, or otherwise benefit students; and 

21 ‘‘(2) describes the terms and conditions that 

22 will be placed upon the program or institution to en23 sure academic integrity and quality.’’. 


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1 SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES. 

2 (a) ELIGIBILITY AND CERTIFICATION PROCE3 DURES.—Section 498 (20 U.S.C. 1099c) is amended— 

4 (1) in subsection (a)— 

5 (A) by striking ‘‘For purposes of’’ and in6 serting the following: 

7 ‘‘(1) IN GENERAL.—For purposes of’’; 

8 (B) by inserting ‘‘, subject to paragraph 

9 (2),’’ after ‘‘determine’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(2) SPECIAL RULE.—The determination of 

12 whether an institution of higher education is legally 

13 authorized to operate in a State under section 

14 101(a)(2) shall be based solely on that State’s 

15 laws.’’; 

16 (2) in subsection (b)(5), by striking ‘‘B or D’’ 

17 and inserting ‘‘E’’; 

18 (3) in subsection (c)— 

19 (A) by redesignating paragraphs (4), (5), 

20 and (6) as paragraphs (6), (7), and (8), respec21 tively; 

22 (B) by striking the subsection designation 

23 and all that follows through the end of para24 graph (3) and inserting the following: 

25 ‘‘(c) FINANCIAL RESPONSIBILITY STANDARDS.—(1) 

26 The Secretary shall determine whether an institution has 


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1 the financial responsibility required by this title in accord2 ance with paragraph (2). 

3 ‘‘(2) An institution shall be determined to be finan4 cially responsible by the Secretary, as required by this 

5 title, if the institution is able to provide the services de6 scribed in its official publications and statements, is able 

7 to provide the administrative resources necessary to com8 ply with the requirements of this title, and meets one of 

9 the following conditions: 

10 ‘‘(A) Such institution has its liabilities backed 

11 by the full faith and credit of a State, or its equiva12 lent. 

13 ‘‘(B) Such institution has a bond credit quality 

14 rating of investment grade or higher from a recog15 nized credit rating agency. 

16 ‘‘(C) Such institution has expendable net assets 

17 equal to not less than one-half of the annual poten18 tial liabilities of such institution to the Secretary for 

19 funds under this title, including loan obligations dis20 charged pursuant to section 437, and to students for 

21 refunds of institutional charges, including funds 

22 under this title, as calculated by an independent cer23 tified public accountant in accordance with generally 

24 accepted auditing standards. 


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1 ‘‘(D) Such institution establishes, with the sup2 port of a financial statement audited by an inde3 pendent certified public accountant in accordance 

4 with generally accepted auditing standards, that the 

5 institution has sufficient resources to ensure against 

6 the precipitous closure of the institution, including 

7 the ability to meet all of its financial obligations (in8 cluding refunds of institutional charges and repay9 ments to the Secretary for liabilities and debts in10 curred in programs administered by the Secretary). 

11 ‘‘(E) Such institution has met criteria, pre12 scribed by the Secretary by regulation in accordance 

13 with paragraph (3), that— 

14 ‘‘(i) establish ratios that demonstrate fi15 nancial responsibility in accordance with gen16 erally accepted auditing standards as described 

17 in paragraph (7); 

18 ‘‘(ii) incorporate the procedures described 

19 in paragraph (4); 

20 ‘‘(iii) establish consequences for failure to 

21 meet the criteria described in paragraph (5); 

22 and 

23 ‘‘(iv) take into account any differences in 

24 generally accepted accounting principles, and 

25 the financial statements required thereunder, 


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1 that are applicable to for-profit, public, and 

2 nonprofit institutions. 

3 ‘‘(3) The criteria prescribed pursuant to paragraph 

4 (2)(E) shall provide that the Secretary shall— 

5 ‘‘(A) not later than 6 months after an institu6 tion that is subject to the requirements of paragraph 

7 (2)(E) has submitted its annual financial statement, 

8 provide to such institution a notification of its pre9 liminary score under such paragraph; 

10 ‘‘(B) provide to each such institution a descrip11 tion of the method used, and complete copies of all 

12 the calculations performed, to determine the institu13 tion’s score, if such institution makes a request for 

14 such information within 45 days after receiving the 

15 notice under subparagraph (A); 

16 ‘‘(C) within 60 days of receipt by an institution 

17 of the information described in subparagraph (B)— 

18 ‘‘(i) allow the institution to correct or cure 

19 an administrative, accounting, or recordkeeping 

20 error if the error is not part of a pattern of er21 rors and there is no evidence of fraud or mis22 conduct related to the error; 

23 ‘‘(ii) if the institution demonstrates that 

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1 ard accounting practices in reaching its deter2 mination, notify the institution that its com3 posite score has been corrected; and 

4 ‘‘(iii) take into consideration any subse5 quent change in the institution’s overall fiscal 

6 health that would raise the institution’s score; 

7 ‘‘(D) maintain and preserve at all times the 

8 confidentiality of any review until such score is de9 termined to be final; and 

10 ‘‘(E) make a determination regarding whether 

11 the institution has met the standards of financial re12 sponsibility based on an audited and certified finan13 cial statement of the institution as described in 

14 paragraph (7). 

15 ‘‘(4) If the Secretary determines, after conducting an 

16 initial review, that the institution has not met at least one 

17 of the conditions described in subparagraphs (A) through 

18 (E) of paragraph (2) but has otherwise met the require19 ments of such paragraph— 

20 ‘‘(A) the Secretary shall request information re21 lating to such conditions for any affiliated or parent 

22 organization, company, or foundation owning or 

23 owned by the institution; and 

24 ‘‘(B) if such additional information dem25 onstrates that an affiliated or parent organization, 


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1 company, or foundation owning or owned by the in2 stitution meets at least one of the conditions de3 scribe in subparagraphs (A) through (E) of para4 graph (2), the institution shall be determined to be 

5 financially responsible as required by this title. 

6 ‘‘(5) The Secretary shall establish policies and proce7 dures to address an institution’s failure to meet the cri8 teria of paragraph (2) which shall include policies and pro9 cedures that— 

10 ‘‘(A) require an institution that fails to meet 

11 the criteria for three consecutive years to provide to 

12 the Secretary a financial plan; 

13 ‘‘(B) provide for additional oversight and cash 

14 monitoring restrictions, as appropriate; 

15 ‘‘(C) allow an institution to submit to the Sec16 retary third-party financial guarantees that the Sec17 retary determines are reasonable, such as perform18 ance bonds or letters of credit payable to the Sec19 retary, except that an institution may not be re20 quired to obtain a letter of credit in order to be 

21 deemed financially responsible unless— 

22 ‘‘(i) the institution has been deemed not to 

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1 ance with generally accepted auditing stand2 ards; 

3 ‘‘(ii) the institution is determined by the 

4 Secretary to be at risk of precipitous closure 

5 when the full financial resources of the institu6 tion, including the value of the institution’s ex7 pendable endowment, are considered; or 

8 ‘‘(iii) the institution is determined by the 

9 Secretary to be at risk of not meeting all of its 

10 financial obligations, including refunds of insti11 tutional charges and repayments to the Sec12 retary for liabilities and debts incurred in pro13 grams administered by the Secretary; and 

14 ‘‘(D) provide for the removal of all require15 ments related to the institution’s failure to meet the 

16 criteria once the criteria are met.’’; and 

17 (C) in paragraph (7), as so redesignated, 

18 by striking ‘‘paragraphs (2) and (3)(C)’’ and 

19 inserting ‘‘paragraph (2)’’; 

20 (4) in subsection (g)(3)— 

21 (A) by striking ‘‘section 102(a)(1)(C)’’ and 

22 inserting ‘‘section 102(a)(1)’’; and 

23 (B) by striking ‘‘part B’’ and inserting 

24 ‘‘part D or E’’; 


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1 (5) in subsection (h)(2), by striking ‘‘18’’ and 

2 inserting ‘‘36’’; 

3 (6) in subsection (i)(1), by striking ‘‘section 

4 102 (other than the requirements in subsections 

5 (b)(5) and (c)(3))’’ and inserting ‘‘sections 101 

6 (other than the requirements in subsections 

7 (b)(1)(A) and (b)(2)) and 102’’; 

8 (7) in subsection (j)(1), by striking ‘‘meet the 

9 requirements of sections 102(b)(1)(E) and 

10 102(c)(1)(C)’’ and inserting ‘‘meet the requirements 

11 to be considered an institution of higher education 

12 under sections 101(b)(1)(A) and 101(b)(2)’’; and 

13 (8) in subsection (k)— 

14 (A) in paragraph (1), by striking ‘‘487(f)’’ 

15 and inserting ‘‘487(e)’’; and 

16 (B) in paragraph (2)(A), by striking ‘‘meet 

17 the requirements of sections 102(b)(1)(E) and 

18 102(c)(1)(C)’’ and inserting ‘‘meet the require19 ments to be considered an institution of higher 

20 education under sections 101(b)(1)(A) and 

21 101(b)(2)’’. 

22 (b) PROGRAM REVIEW AND DATA.—Section 498A 

23 (20 U.S.C. 1099c–1) is amended— 

24 (1) in subsection (a)(2)— 


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1 (A) by striking ‘‘part B of’’ both places it 

2 appears; 

3 (B) in subparagraph (A), by inserting be4 fore the semicolon at the end the following: ‘‘, 

5 or after the transition period described in sec6 tion 481B(e)(3), institutions in which 25 per7 cent or more of the educational programs have 

8 a loan repayment rate (defined in section 

9 481B(c)) for the most recent fiscal year of less 

10 than 50 percent’’; 

11 (C) in subparagraph (B), by inserting be12 fore the semicolon at the end the following: ‘‘, 

13 except that this subparagraph shall not apply 

14 after the transition period described in section 

15 481B(e)(3)’’; and 

16 (D) in subparagraph (C)— 

17 (i) by inserting ‘‘Federal ONE Loan 

18 volume,’’ after ‘‘Stafford/Ford Loan vol19 ume’’; and 

20 (ii) by inserting ‘‘Federal ONE Loan 

21 program,’’ after ‘‘Stafford/Ford Loan pro22 gram’’; 

23 (2) in subsection (b)— 


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1 (A) by redesignating paragraphs (3) 

2 through (8) as paragraphs (4) through (9), re3 spectively; 

4 (B) by inserting after paragraph (2) the 

5 following new paragraph: 

6 ‘‘(3) as practicable, provide a written expla7 nation to the institution of higher education detail8 ing the Secretary’s reasons for initiating the pro9 gram review which, if applicable, shall include ref10 erences to specific criteria under subsection (a)(2);’’; 

11 and 

12 (C) in paragraph (9), as so redesignated— 

13 (i) by striking ‘‘paragraphs (6) and 

14 (7)’’ and inserting ‘‘paragraphs (7) and 

15 (8)’’; and 

16 (ii) by striking ‘‘paragraph (5)’’ and 

17 inserting ‘‘paragraph (6)’’; and 

18 (3) by adding at the end the following new sub19 section: 

20 ‘‘(f) TIME LIMIT ON PROGRAM REVIEW ACTIVI21 TIES.—In conducting, responding to, and concluding pro22 gram review activities, the Secretary shall— 

23 ‘‘(1) provide to the institution the initial report 

24 finding not later than 90 days after concluding an 

25 initial site visit; 


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1 ‘‘(2) upon each receipt of an institution’s re2 sponse during a program review inquiry, respond in 

3 a substantive manner within 90 days; 

4 ‘‘(3) upon each receipt of an institution’s writ5 ten response to a draft final program review report, 

6 provide the final program review report and accom7 panying enforcement actions, if any, within 90 days; 

8 and 

9 ‘‘(4) conclude the entire program review process 

10 not later than 2 years after the initiation of a pro11 gram review, unless the Secretary determines that 

12 such a review is sufficiently complex and cannot rea13 sonably be concluded before the expiration of such 2- 

14 year period, in which case the Secretary shall 

15 promptly notify the institution of the reasons for 

16 such delay and provide an anticipated date for con17 clusion of the review.’’. 

18 (c) REVIEW OF REGULATIONS.—Section 498B(b) (20 

19 U.S.C. 1099c–2(b)) is amended by striking ‘‘section 

20 102(a)(1)(C)’’ and inserting ‘‘102(a)(1)’’. 

21 TITLE V—DEVELOPING 

22 INSTITUTIONS 

23 SEC. 501. HISPANIC-SERVING INSTITUTIONS. 

24 Part A of title V (20 U.S.C. 1101 et seq.) is amend25 ed— 


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1 (1) in section 502(a)— 

2 (A) in paragraph (1), by striking ‘‘institu3 tion for instruction’’ and inserting ‘‘institution 

4 of higher education for instruction’’; 

5 (B) in paragraph (2)(A)— 

6 (i) by redesignating clauses (v) and 

7 (vi) as clauses (vi) and (v), respectively; 

8 (ii) in clause (v) (as so redesignated), 

9 by inserting ‘‘(as defined in section 

10 103(20)(A))’’ after ‘‘State’’; and 

11 (iii) in clause (vi) (as so redesig12 nated), by striking ‘‘and’’ at the end; and 

13 (C) in paragraph (2)— 

14 (i) by striking the period at the end of 

15 subparagraph (B) and inserting ‘‘; and’’; 

16 and 

17 (ii) by adding at the end the fol18 lowing: 

19 ‘‘(C) except as provided in section 522(b), 

20 an institution that has a completion rate of at 

21 least 25 percent that is calculated by— 

22 ‘‘(i) counting a student as completed 

23 if that student graduated within 150 per24 cent of the normal time for completion; or 


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1 ‘‘(ii) counting a student as completed 

2 if that student enrolled into another pro3 gram at an institution for which the pre4 vious program provided substantial prepa5 ration within 150 percent of normal time 

6 for completion.’’; 

7 (2) in section 503— 

8 (A) in subsection (b)— 

9 (i) in paragraph (5), by striking 

10 ‘‘counseling, and’’ and inserting ‘‘coun11 seling, advising, and’’; 

12 (ii) in paragraph (7), by striking 

13 ‘‘funds management’’ and inserting ‘‘funds 

14 and administrative management’’; 

15 (iii) in paragraph (11), by striking 

16 ‘‘Creating’’ and all that follows through 

17 ‘‘technologies,’’ and inserting ‘‘Innovative 

18 learning models and creating or improving 

19 facilities for Internet or other innovative 

20 technologies,’’; and 

21 (iv) by redesignating paragraph (16) 

22 as paragraph (20) and inserting after 

23 paragraph (15) the following: 

24 ‘‘(16) The development, coordination, imple25 mentation, or improvement of career and technical 


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1 education programs (as defined in section 135 of the 

2 Carl D. Perkins Career and Technical Education 

3 Act of 2006 (20 U.S.C. 2355)). 

4 ‘‘(17) Alignment and integration of career and 

5 technical education programs with programs of 

6 study leading to a bachelor’s degree, graduate de7 gree, or professional degree. 

8 ‘‘(18) Developing or expanding access to dual 

9 or concurrent enrollment programs and early college 

10 high school programs. 

11 ‘‘(19) Pay for success initiatives that improve 

12 time to completion and increase graduation rates.’’; 

13 and 

14 (B) in subsection (c), by adding at the end 

15 the following: 

16 ‘‘(4) SCHOLARSHIP.—An institution that uses 

17 grant funds provided under this part to establish or 

18 increase an endowment fund may use the income 

19 from such endowment fund to provide scholarships 

20 to students for the purposes of attending such insti21 tution, subject to the limitation in section 

22 331(c)(3)(B)(i).’’; 

23 (3) in section 504, by striking subsection (a) 

24 and inserting the following: 


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1 ‘‘(a) AWARD PERIOD.—The Secretary may award a 

2 grant to a Hispanic-serving institution under this part for 

3 a period of 5 years. Any funds awarded under this part 

4 that are not expended or used, before the date that is 10 

5 years after the date on which the grant was awarded, for 

6 the purposes for which the funds were paid shall be repaid 

7 to the Treasury.’’; and 

8 (4) in section 505, by striking ‘‘this title’’ each 

9 place such term appears and inserting ‘‘this part’’. 

10 SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNI11 TIES FOR HISPANIC AMERICANS. 

12 Part B of title V (20 U.S.C. 1102 et seq.) is amend13 ed— 

14 (1) in section 513— 

15 (A) by striking paragraph (1) and insert16 ing the following: 

17 ‘‘(1) The activities described in (1) through (4), 

18 (11), and (19) of section 503(b).’’; 

19 (B) by striking paragraphs (2) and (3); 

20 and 

21 (C) by redesignating paragraphs (4) 

22 through (8) as paragraphs (2) through (6), re23 spectively; and 

24 (D) in paragraph (4) (as so redesignated), 

25 by striking ‘‘Creating’’ and all that follows 


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1 through ‘‘technologies,’’ and inserting ‘‘Innova2 tive learning models and creating or improving 

3 facilities for Internet or other innovative tech4 nologies,’’; and 

5 (2) in section 514— 

6 (A) by striking subsection (b) and insert7 ing the following: 

8 ‘‘(b) DURATION.—The Secretary may award a grant 

9 to a Hispanic-serving institution under this part for a pe10 riod of 5 years. Any funds awarded under this part that 

11 are not expended or used for the purposes for which the 

12 funds were paid within 10 years following the date on 

13 which the grant was awarded shall be repaid to the Treas14 ury.’’; and 

15 (B) by adding at the end the following: 

16 ‘‘(d) SPECIAL RULE.—No Hispanic-serving institu17 tion that is eligible for and receives funds under this part 

18 may receive funds under part A or B of title III during 

19 the period for which funds under this part are awarded.’’. 

20 SEC. 503. GENERAL PROVISIONS. 

21 Part C of title V (20 U.S.C. 1103 et seq.) is amend22 ed— 

23 (1) in section 521(c)(7)— 

24 (A) by striking subparagraph (C); 


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1 (B) by redesignating subparagraphs (D) 

2 and (E) as subparagraphs (C) and (D), respec3 tively; and 

4 (C) in subparagraph (D), as so redesig5 nated, by striking ‘‘subparagraph (D)’’ and in6 serting ‘‘subparagraph (C)’’; 

7 (2) in section 522(b)— 

8 (A) in the subsection heading, by inserting 

9 ‘‘; COMPLETION RATES’’ after ‘‘EXPENDI10 TURES’’; 

11 (B) in paragraph (1), by inserting ‘‘or 

12 502(a)(2)(C)’’ after ‘‘502(a)(2)(A)(ii)’’; and 

13 (C) in paragraph (2)— 

14 (i) in the paragraph heading, by in15 serting ‘‘AND COMPLETION RATES’’ after 

16 ‘‘EXPENDITURES’’; 

17 (ii) in the matter preceding subpara18 graph (A), by inserting ‘‘or 502(a)(2)(C)’’ 

19 after ‘‘502(a)(2)(A)(ii)’’; and 

20 (iii) in subparagraph (A), by inserting 

21 ‘‘or section 502(a)(2)(C)’’ after 

22 ‘‘502(a)(2)(A)’’; 

23 (3) in section 524(c), by striking ‘‘section 505’’ 

24 and inserting ‘‘section 504’’; and 

25 (4) in section 528— 


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1 (A) in subsection (a), by striking ‘‘parts A 

2 and C’’ and all that follows through the period 

3 at the end and inserting ‘‘parts A and C, 

4 $107,795,000 for each of fiscal years 2019 

5 through 2024.’’; and 

6 (B) in subsection (b), by striking ‘‘part B’’ 

7 and all that follows through the period at the 

8 end and inserting ‘‘part B, $9,671,000 for each 

9 of fiscal years 2019 through 2024.’’. 

10 TITLE VI—INTERNATIONAL 

11 EDUCATION PROGRAMS 

12 SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD13 IES. 

14 (a) GRADUATE AND UNDERGRADUATE LANGUAGE

15 AND AREA CENTERS AND PROGRAMS.—Section 602 (20 

16 U.S.C. 1122) is amended— 

17 (1) in subsection (a)(4)(F), by inserting ‘‘(C),’’ 

18 after ‘‘(B),’’; and 

19 (2) in subsection (e)— 

20 (A) by redesignating paragraphs (1) and 

21 (2) as subparagraphs (A) and (B), respectively, 

22 and realigning such subparagraphs so as to be 

23 indented 4 ems from the left margin; 

24 (B) by striking ‘‘(e) APPLICATION.—Each 

25 institution’’ and inserting the following: 


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1 ‘‘(e) APPLICATION.— 

2 ‘‘(1) SUBMISSION; CONTENTS.—Each institu3 tion’’; and 

4 (C) by adding at the end the following new 

5 paragraph: 

6 ‘‘(2) APPROVAL.—The Secretary may approve 

7 an application for a grant if an institution, in its ap8 plication, provides adequate assurances that it will 

9 comply with paragraph (1)(A). The Secretary shall 

10 use the requirement of paragraph (1)(A) as part of 

11 the application evaluation, review, and approval 

12 process when determining grant recipients for initial 

13 funding and continuation awards.’’. 

14 (b) DISCONTINUATION OF CERTAIN PROGRAMS.— 

15 Part A of title VI (20 U.S.C. 1121 et seq.) is amended— 

16 (1) by striking section 604; 

17 (2) by striking section 606; 

18 (3) by striking section 609; and 

19 (4) by striking section 610. 

20 (c) CONFORMING AMENDMENT.—Part A of title VI 

21 (20 U.S.C. 1121 et seq.) is further amended by redesig22 nating sections 605, 607, and 608 as sections 604, 605, 

23 and 606, respectively. 


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1 SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO2 GRAMS. 

3 (a) CENTERS FOR INTERNATIONAL BUSINESS EDU4 CATION.—Section 612 (20 U.S.C. 1130–1) is amended— 

5 (1) in subsection (f)(3), by inserting ‘‘and a 

6 wide range of views’’ after ‘‘diverse perspectives’’; 

7 and 

8 (2) by adding at the end the following new sub9 section: 

10 ‘‘(g) APPROVAL.—The Secretary may approve an ap11 plication for a grant if an institution, in its application, 

12 provides adequate assurances that it will comply with sub13 section (f)(3). The Secretary shall use the requirement of 

14 subsection (f)(3) as part of the application evaluation, re15 view, and approval process when determining grant recipi16 ents for initial funding and continuation awards.’’. 

17 (b) DISCONTINUATION OF CERTAIN PROGRAMS.— 

18 Part B of title VI (20 U.S.C. 1130 et seq.) is amended 

19 by striking sections 613 and 614. 

20 SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTI21 TUTE FOR INTERNATIONAL PUBLIC POLICY. 

22 Part C of title VI (20 U.S.C. 1131 et seq.) is re23 pealed. 

24 SEC. 604. GENERAL PROVISIONS. 

25 (a) DEFINITIONS.—Section 631(a) (20 U.S.C. 

26 1132(a)) is amended— 


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1 (1) by striking paragraphs (5) and (9); 

2 (2) in paragraph (8), by inserting ‘‘and’’ after 

3 the semicolon at the end; and 

4 (3) by redesignating paragraphs (6), (7), (8), 

5 and (10) as paragraphs (5), (6), (7), and (8), re6 spectively. 

7 (b) SPECIAL RULE.—Section 632(2) (20 U.S.C. 

8 1132–1(2)) is amended by inserting ‘‘substantial’’ before 

9 ‘‘need’’. 

10 (c) REPORTS.—Section 636 (20 U.S.C. 1132–5) is 

11 amended— 

12 (1) by inserting ‘‘(a) BIENNIAL REPORT ON

13 AREAS OF NATIONAL NEED.—’’ before ‘‘The Sec14 retary’’; and 

15 (2) by adding at the end the following new sub16 section: 

17 ‘‘(b) ANNUAL REPORT ON COMPLIANCE WITH DI18 VERSE PERSPECTIVES AND A WIDE RANGE OF VIEWS RE19 QUIREMENT.—Not later than 180 days after the date of 

20 the enactment of this subsection, and annually thereafter, 

21 the Secretary shall submit to the authorizing committees 

22 a report that identifies the efforts taken to ensure recipi23 ents’ compliance with the requirements under this title re24 lating to the ‘diverse perspectives and a wide range of 

25 views’ requirement, including any technical assistance the 


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1 Department has provided, any regulatory guidance the 

2 Department has issued, and any monitoring the Depart3 ment has conducted. Such report shall be made available 

4 to the public.’’. 

5 (d) REPEAL OF SCIENCE AND TECHNOLOGY AD6 VANCED FOREIGN LANGUAGE EDUCATION GRANT PRO7 GRAM.—Section 637 (20 U.S.C. 1132–6) is repealed. 

8 (e) REPORTING BY INSTITUTIONS.—Section 638(b) 

9 (20 U.S.C. 1132–7(b)) is amended to read as follows: 

10 ‘‘(b) DATA REQUIRED.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (5), the Secretary shall require an institution 

13 of higher education referred to in subsection (a) to 

14 file a disclosure report under paragraph (2) with the 

15 Secretary on January 31 or July 31, whichever is 

16 sooner, with respect to the date on which such insti17 tution received a contribution— 

18 ‘‘(A) less than 7 months from such date; 

19 and 

20 ‘‘(B) greater than 30 days from such date. 

21 ‘‘(2) CONTENTS OF REPORT.—Each report to 

22 the Secretary required by this section shall contain 

23 the following information with respect to the institu24 tion of higher education filing the report: 


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1 ‘‘(A) For gifts received from, or contracts 

2 entered into with a foreign source other than a 

3 foreign government, the following information: 

4 ‘‘(i) The aggregate dollar amount of 

5 such gifts and contracts attributable to 

6 each country, including the fair market 

7 value of the services of staff members, 

8 textbooks, and other in-kind gifts. 

9 ‘‘(ii) The legal name of the entity pro10 viding any such gift or contract. 

11 ‘‘(iii) The country to which the gift is 

12 attributable. 

13 ‘‘(B) For gifts received from, or contracts 

14 entered into with, a foreign government, the ag15 gregate dollar amount of such gifts and con16 tracts received from each foreign government 

17 and the legal name of the entity providing any 

18 such gift or contract. 

19 ‘‘(C) In the case of an institution of higher 

20 education that is owned or controlled by a for21 eign source— 

22 ‘‘(i) the identity of the foreign source; 

23 ‘‘(ii) the date on which the foreign 

24 source assumed ownership or control of the 

25 institution; and 


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1 ‘‘(iii) any changes in program or 

2 structure resulting from the change in 

3 ownership or control. 

4 ‘‘(3) ADDITIONAL DISCLOSURES FOR RE5 STRICTED AND CONDITIONAL GIFTS.—Notwith6 standing paragraph (1), when an institution of high7 er education receives a restricted or conditional gift 

8 or contract from a foreign source, the institution 

9 shall disclose the following: 

10 ‘‘(A) In the case of gifts received from, or 

11 contracts entered into with, a foreign source 

12 other than a foreign government, the amount, 

13 the date, and a description of such conditions 

14 or restrictions. 

15 ‘‘(B) The country to which the gift is at16 tributable. 

17 ‘‘(C) In the case of gifts received from, or 

18 contracts entered into with, a foreign govern19 ment, the amount, the date, a description of 

20 such conditions or restrictions, and the name of 

21 the foreign government. 

22 ‘‘(4) ATTRIBUTION OF GIFTS.—For purposes of 

23 this subsection, the country to which a gift is attrib24 utable is— 

25 ‘‘(A) the country of citizenship; or 


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1 ‘‘(B) if the information described in sub2 paragraph (A) is not known— 

3 ‘‘(i) the principal residence for a for4 eign source who is a natural person; or 

5 ‘‘(ii) the principal place of business 

6 and country of incorporation for a foreign 

7 source that is a legal entity. 

8 ‘‘(5) RELATION TO OTHER REPORTING RE9 QUIREMENTS.— 

10 ‘‘(A) STATE REQUIREMENTS.—If an insti11 tution described under subsection (a) is located 

12 within a State that has enacted requirements 

13 for public disclosure of gifts from, or contracts 

14 with, a foreign source that are substantially 

15 similar to the requirements of this section, as 

16 determined by the Secretary, a copy of the dis17 closure report filed with the State may be filed 

18 with the Secretary in lieu of a report required 

19 under paragraph (1). 

20 ‘‘(B) ASSURANCES.—With respect to an 

21 institution that submits a copy of a disclosure 

22 report pursuant to subparagraph (A), the State 

23 in which such institution is located shall provide 

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1 tion has met the requirements for public disclo2 sure under the laws of such State. 

3 ‘‘(C) USE OF OTHER FEDERAL RE4 PORTS.—If an institution receives a gift from, 

5 or enters into a contract with, a foreign source, 

6 where any other Federal law or regulation re7 quires a report containing requirements sub8 stantially similar to the requirements under this 

9 section, as determined by the Secretary, a copy 

10 of the report may be filed with the Secretary in 

11 lieu of a report required under subsection (b). 

12 ‘‘(6) PUBLIC INSPECTION.—A disclosure report 

13 required by this section shall be— 

14 ‘‘(A) available as public records open to in15 spection and copying during business hours; 

16 ‘‘(B) available electronically; and 

17 ‘‘(C) made available under subparagraphs 

18 (A) and (B) not later than 30 days after the 

19 Secretary receives such report. 

20 ‘‘(7) ENFORCEMENT.— 

21 ‘‘(A) COMPEL COMPLIANCE.—Whenever it 

22 appears that an institution has failed to comply 

23 with the requirements of this section, including 

24 any rule or regulation promulgated under this 

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1 torney General, at the request of the Secretary, 

2 in an appropriate district court of the United 

3 States, or the appropriate United States court 

4 of any territory or other place subject to the ju5 risdiction of the United States, to request such 

6 court to compel compliance with the require7 ments of this section. 

8 ‘‘(B) COSTS.—For knowing or willful fail9 ure to comply with the requirements of this sec10 tion, including any rule or regulation promul11 gated thereunder, an institution shall pay to the 

12 Treasury of the United States the full costs to 

13 the United States of obtaining compliance, in14 cluding all associated costs of investigation and 

15 enforcement. 

16 ‘‘(8) DEFINITIONS.—In this section: 

17 ‘‘(A) CONTRACT.—The term ‘contract’ 

18 means any agreement for the acquisition by 

19 purchase, lease, gift, or barter of property or 

20 services by the foreign source, for the direct 

21 benefit or use of either of the parties. 

22 ‘‘(B) FOREIGN SOURCE.—The term ‘for23 eign source’ means— 

24 ‘‘(i) a foreign government, including 

25 an agency of a foreign government; 


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1 ‘‘(ii) a legal entity, governmental or 

2 otherwise, created solely under the laws of 

3 a foreign state or states; 

4 ‘‘(iii) an individual who is not a cit5 izen or a national of the United States or 

6 a trust territory or protectorate thereof; 

7 and 

8 ‘‘(iv) an agent, including a subsidiary 

9 or affiliate of a foreign legal entity, acting 

10 on behalf of a foreign source. 

11 ‘‘(C) GIFT.—The term ‘gift’ means any 

12 gift of money, property, human resources, or 

13 payment of any staff. 

14 ‘‘(D) RESTRICTED OR CONDITIONAL.—The 

15 term ‘restricted or conditional’, with respect to 

16 an endowment, gift, grant, contract, award, 

17 present, or property of any kind means includ18 ing as a condition on such endowment, gift, 

19 grant, contract, award, present, or property 

20 provisions regarding— 

21 ‘‘(i) the employment, assignment, or 

22 termination of faculty; 

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1 grams, institutes, instructional programs, 

2 or new faculty positions; 

3 ‘‘(iii) the selection or admission of 

4 students; or 

5 ‘‘(iv) the award of grants, loans, 

6 scholarships, fellowships, or other forms of 

7 financial aid restricted to students of a 

8 specified country, religion, sex, ethnic ori9 gin, or political opinion.’’. 

10 (f) REDESIGNATIONS.—Part D of title VI (20 U.S.C. 

11 1132 et seq.) is amended— 

12 (1) by redesignating such part as part C; and 

13 (2) by redesignating sections 631, 632, 633, 

14 634, 635, 636, and 638 as sections 621, 622, 623, 

15 624, 625, 626, and 627, respectively. 

16 (g) CONTINUATION AWARDS.—Part C of title VI (20 

17 U.S.C. 1131 et seq.), as so redesignated by subsection 

18 (f)(1) of this section, is amended by adding at the end 

19 the following new sections: 

20 ‘‘SEC. 628. CONTINUATION AWARDS. 

21 ‘‘The Secretary shall make continuation awards 

22 under this title for the second and succeeding years of a 

23 grant only after determining that the recipient is making 

24 satisfactory progress in carrying out the grant. 


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1 ‘‘SEC. 629. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There is authorized to be appropriated to carry out 

3 this title $61,525,000 for each of fiscal years 2019 

4 through 2024.’’. 

5 TITLE VII—GRADUATE AND 

6 POSTSECONDARY IMPROVE7 MENT PROGRAMS 

8 SEC. 701. GRADUATE EDUCATION PROGRAMS. 

9 (a) REPEAL OF JACOB K. JAVITS FELLOWSHIP PRO10 GRAM.—Subpart 1 of part A of title VII (20 U.S.C. 1134 

11 et seq.) is repealed. 

12 (b) REPEAL OF THURGOOD MARSHALL LEGAL EDU13 CATIONAL OPPORTUNITY PROGRAM.—Subpart 3 of part 

14 A of title VII (20 U.S.C. 1136) is repealed. 

15 (c) AUTHORIZATION OF APPROPRIATIONS FOR GRAD16 UATE ASSISTANCE IN AREAS OF NATIONAL NEED.—Sec17 tion 716 (20 U.S.C. 1135e) is amended striking 

18 ‘‘$35,000,000’’ and all that follows through the period at 

19 the end and inserting ‘‘$28,047,000 for each of fiscal 

20 years 2019 through 2024.’’. 

21 (d) REDESIGNATIONS.—Part A of title VII (20 

22 U.S.C. 1134 et seq.) is amended— 

23 (1) by redesignating subparts 2, 4, and 5 as 

24 subparts 1, 2, and 3 respectively; 

25 (2) by redesignating sections 711 through 716 

26 as sections 701 through 706, respectively; 


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1 (3) by redesignating sections 723 through 725 

2 as sections 711 through 713, respectively; and 

3 (4) by redesignating section 731 as section 721. 

4 (e) AMENDMENT OF CROSS REFERENCES.—Part A 

5 of title VII (20 U.S.C. 1134 et seq.) is amended— 

6 (1) in section 703(b)(8), as so redesignated, by 

7 striking ‘‘section 715’’ and inserting ‘‘section 705’’; 

8 (2) in section 704(c)), as so redesignated— 

9 (A) by striking ‘‘section 715(a)’’ and in10 serting ‘‘section 705(a)’’; and 

11 (B) by striking ‘‘section 713(b)(2)’’ and in12 serting ‘‘section 703(b)(2)’’; 

13 (3) in section 711(e), as so redesignated, by 

14 striking ‘‘724’’ and inserting ‘‘712’’; 

15 (4) in section 712(e), as so redesignated, by 

16 striking ‘‘723’’ and inserting ‘‘711’’; 

17 (5) in section 713, as so redesignated— 

18 (A) in subsection (a), by striking ‘‘section 

19 723’’ and all that follows through the period at 

20 the end and inserting ‘‘section 711, $7,500,000 

21 for fiscal year 2019 and each of the five suc22 ceeding fiscal years.’’; and 

23 (B) in subsection (b), by striking ‘‘section 

24 724’’ and inserting ‘‘section 712’’; and 

25 (6) in section 721, as so redesignated— 


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1 (A) in the section heading, by striking 

2 ‘‘THROUGH 4’’ and inserting ‘‘AND 2’’; 

3 (B) by striking ‘‘subparts 1 through 4’’ 

4 each place such term appears and inserting 

5 ‘‘subparts 1 and 2’’; 

6 (C) in subsection (c)— 

7 (i) by striking ‘‘section 703(b) or 

8 715(a)’’ and inserting ‘‘section 705(a)’’; 

9 and 

10 (ii) by striking ‘‘subparts 1 or 2, re11 spectively,’’ and inserting ‘‘subpart 1’’; and 

12 (D) in subsection (d), by striking ‘‘subpart 

13 1, 2, 3, or 4’’ and inserting ‘‘subpart 1 or 2’’. 

14 SEC. 702. REPEAL OF FUND FOR THE IMPROVEMENT OF 

15 POSTSECONDARY EDUCATION. 

16 Part B of title VII (20 U.S.C. 1138 et seq.) is re17 pealed. 

18 SEC. 703. PROGRAMS FOR STUDENTS WITH DISABILITIES. 

19 (a) REDESIGNATIONS.— 

20 (1) SUBPART.—Part D of title VII (20 U.S.C. 

21 1140 et seq.) is amended by striking subparts 1 and 

22 3 and redesignating subparts 2 and 4 as subparts 1 

23 and 2, respectively. 


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1 (2) PART.—Part D of title VII (20 U.S.C. 

2 1140 et seq.), as amended by paragraph (1), is re3 designated as part B of such Act. 

4 (b) MODEL TRANSITION PROGRAMS; COORDINATING

5 CENTER.— 

6 (1) PURPOSE.—Section 766 (20 U.S.C. 1140f) 

7 is redesignated as section 731 of such Act. 

8 (2) MODEL COMPREHENSIVE TRANSITION AND

9 POSTSECONDARY PROGRAMS.—Section 767 (20 

10 U.S.C. 1140g) is amended— 

11 (A) by redesignating such section as sec12 tion 732 of such Act; 

13 (B) in subsection (a)(1)— 

14 (i) by striking ‘‘section 769(a)’’ and 

15 inserting ‘‘section 735(a)’’; and 

16 (ii) by striking ‘‘institutions of higher 

17 education (or consortia of institutions of 

18 higher education), to enable the institu19 tions or consortia’’ and inserting ‘‘eligible 

20 applicants, to enable the eligible appli21 cants’’; 

22 (C) by striking subsection (b) and insert23 ing the following: 

24 ‘‘(b) APPLICATION.—An eligible applicant desiring a 

25 grant under this section shall submit to the Secretary, at 


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1 such time and in such manner as the Secretary may re2 quire, an application that— 

3 ‘‘(1) describes how the model program to be op4 erated by the eligible applicant with grant funds re5 ceived under this section will meet the requirements 

6 of subsection (d); 

7 ‘‘(2) describes how the model program proposed 

8 to be operated is based on the demonstrated needs 

9 of students with intellectual disabilities served by the 

10 eligible applicant and potential employers; 

11 ‘‘(3) describes how the model program proposed 

12 to be operated will coordinate with other Federal, 

13 State, and local programs serving students with in14 tellectual disabilities, including programs funded 

15 under the Rehabilitation Act of 1973 (29 U.S.C. 

16 701 et seq.); 

17 ‘‘(4) describes how the model program will be 

18 sustained once the grant received under this section 

19 ends; 

20 ‘‘(5) if applicable, describes how the eligible ap21 plicant will meet the preferences described in sub22 section (c)(3); and 

23 ‘‘(6) demonstrates the ability of the eligible ap24 plicant to meet the requirement under subsection 

25 (e).’’; 


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1 (D) in subsection (c)(3)— 

2 (i) in subparagraph (B), by striking 

3 ‘‘institution of higher education’’ and in4 serting ‘‘eligible applicant’’; and 

5 (ii) in subparagraph (C), by striking 

6 ‘‘students attending the institution of high7 er education’’ and inserting ‘‘the eligible 

8 applicant’s students’’; 

9 (E) in subsection (d)— 

10 (i) in the matter preceding paragraph 

11 (1), by striking ‘‘An institution of higher 

12 education (or consortium)’’ and inserting 

13 ‘‘An eligible applicant’’; 

14 (ii) in paragraph (2), by striking ‘‘in15 stitution of higher education’s’’ and insert16 ing ‘‘eligible applicant’s’’; 

17 (iii) in paragraph (3)(D), by striking 

18 ‘‘that lead to gainful employment’’; 

19 (iv) in paragraph (5), by striking 

20 ‘‘section 777(b)’’ and inserting ‘‘section 

21 734’’; 

22 (v) in paragraph (6), by inserting 

23 ‘‘and’’ after the semicolon at the end; 

24 (vi) by striking paragraph (7); and 


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1 (vii) by redesignating paragraph (8) 

2 as paragraph (7); 

3 (F) in subsection (e), by striking ‘‘An in4 stitution of higher education (or consortium)’’ 

5 and inserting ‘‘An eligible applicant’’; 

6 (G) in subsection (f), by striking ‘‘Not 

7 later than five years after the date of the first 

8 grant awarded under this section’’ and inserting 

9 ‘‘Not less often than once every 5 years’’; and 

10 (H) by adding at the end the following new 

11 subsection: 

12 ‘‘(g) DEFINITION.—For purposes of this subpart, the 

13 term ‘eligible applicant’ means an institution of higher 

14 education or a consortium of institutions of higher edu15 cation.’’. 

16 (3) REDESIGNATIONS.—Sections 768 and 769 

17 (20 U.S.C. 1140i) are redesignated as sections 733 

18 and 735, respectively. 

19 (4) COORDINATING CENTER.—Subpart 1 of 

20 part D of title VII, as so redesignated by subsection 

21 (a)(1), is amended by inserting after section 733 (as 

22 so redesignated by paragraph (3)) the following new 

23 section: 


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1 ‘‘SEC. 734. COORDINATING CENTER. 

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

3 provide technical assistance and information on best and 

4 promising practices to eligible applicants awarded grants 

5 under section 732. 

6 ‘‘(b) COORDINATING CENTER.— 

7 ‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In 

8 this section, the term ‘eligible entity’ means an enti9 ty, or a partnership of entities, that has dem10 onstrated expertise in the fields of— 

11 ‘‘(A) higher education; 

12 ‘‘(B) the education of students with intel13 lectual disabilities; 

14 ‘‘(C) the development of comprehensive 

15 transition and postsecondary programs for stu16 dents with intellectual disabilities; and 

17 ‘‘(D) evaluation and technical assistance. 

18 ‘‘(2) IN GENERAL.—From amounts appro19 priated under section 735, the Secretary shall enter 

20 into a cooperative agreement, on a competitive basis, 

21 with an eligible entity for the purpose of establishing 

22 a coordinating center for institutions of higher edu23 cation that offer inclusive comprehensive transition 

24 and postsecondary programs for students with intel25 lectual disabilities, including eligible applicants re26 ceiving grants under section 732, to provide— 


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1 ‘‘(A) recommendations related to the devel2 opment of standards for such programs; 

3 ‘‘(B) technical assistance for such pro4 grams; and 

5 ‘‘(C) evaluations for such programs. 

6 ‘‘(3) ADMINISTRATION.—The program under 

7 this section shall be administered by the office in the 

8 Department that administers other postsecondary 

9 education programs. 

10 ‘‘(4) DURATION.—A cooperative agreement en11 tered into pursuant to this section shall have a term 

12 of 5 years. 

13 ‘‘(5) REQUIREMENTS OF COOPERATIVE AGREE14 MENT.—The cooperative agreement entered into 

15 pursuant to this section shall provide that the eligi16 ble entity entering into such agreement shall estab17 lish and maintain a coordinating center that shall— 

18 ‘‘(A) serve as the technical assistance enti19 ty for all comprehensive transition and postsec20 ondary programs for students with intellectual 

21 disabilities; 

22 ‘‘(B) provide technical assistance regarding 

23 the development, evaluation, and continuous im24 provement of such programs; 


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1 ‘‘(C) develop an evaluation protocol for 

2 such programs that includes qualitative and 

3 quantitative methodologies for measuring stu4 dent outcomes and program strengths in the 

5 areas of academic enrichment, socialization, 

6 independent living, and competitive or sup7 ported employment; 

8 ‘‘(D) assist recipients of grants under sec9 tion 732 in efforts to award a meaningful cre10 dential to students with intellectual disabilities 

11 upon the completion of such programs, which 

12 credential shall take into consideration unique 

13 State factors; 

14 ‘‘(E) develop recommendations for the nec15 essary components of such programs, such as— 

16 ‘‘(i) academic, vocational, social, and 

17 independent living skills; 

18 ‘‘(ii) evaluation of student progress; 

19 ‘‘(iii) program administration and 

20 evaluation; 

21 ‘‘(iv) student eligibility; and 

22 ‘‘(v) issues regarding the equivalency 

23 of a student’s participation in such pro24 grams to semester, trimester, quarter, 


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1 credit, or clock hours at an institution of 

2 higher education, as the case may be; 

3 ‘‘(F) analyze possible funding sources for 

4 such programs and provide recommendations to 

5 such programs regarding potential funding 

6 sources; 

7 ‘‘(G) develop model memoranda of agree8 ment for use between or among institutions of 

9 higher education and State and local agencies 

10 providing funding for such programs; 

11 ‘‘(H) develop mechanisms for regular com12 munication, outreach, and dissemination of in13 formation about comprehensive transition and 

14 postsecondary programs for students with intel15 lectual disabilities under section 732 between or 

16 among such programs and to families and pro17 spective students; 

18 ‘‘(I) host a meeting of all recipients of 

19 grants under section 732 not less often than 

20 once every 3 years; and 

21 ‘‘(J) convene a workgroup to develop and 

22 recommend model criteria, standards, and com23 ponents of such programs as described in sub24 paragraph (E) that are appropriate for the deVerDate Sep 11 2014 02:45 Dec 06, 2017 Jkt 079200 PO 00000 Frm 00524 Fmt 6652 Sfmt 6201 E:\BILLS\H4508.IH H4508

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1 velopment of accreditation standards, which 

2 workgroup shall include— 

3 ‘‘(i) an expert in higher education; 

4 ‘‘(ii) an expert in special education; 

5 ‘‘(iii) a representative of a disability 

6 organization that represents students with 

7 intellectual disabilities; 

8 ‘‘(iv) a representative from the Na9 tional Advisory Committee on Institutional 

10 Quality and Integrity; and 

11 ‘‘(v) a representative of a regional or 

12 national accreditation agency or associa13 tion. 

14 ‘‘(6) REPORT.—Not less often than once every 

15 5 years, the coordinating center shall report to the 

16 Secretary, the authorizing committees, and the Na17 tional Advisory Committee on Institutional Quality 

18 and Integrity on the recommendations of the 

19 workgroup described in paragraph (5)(J).’’. 

20 (5) AUTHORIZATION OF APPROPRIATIONS.— 

21 Section 735, as so redesignated by paragraph (3), is 

22 amended— 

23 (A) in subsection (a), by striking ‘‘such 

24 sums as may be necessary for fiscal year 2009’’ 


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1 and inserting ‘‘$11,800,000 for fiscal year 

2 2019’’; and 

3 (B) by striking subsection (b) and insert4 ing the following: 

5 ‘‘(b) RESERVATION OF FUNDS.—For any fiscal year 

6 for which appropriations are made for this subpart, the 

7 Secretary— 

8 ‘‘(1) shall reserve funds to enter into a coopera9 tive agreement to establish the coordinating center 

10 under section 734, in an amount that is equal to— 

11 ‘‘(A) not less than $240,000 for any year 

12 in which the amount appropriated to carry out 

13 this subpart is $8,000,000 or less; or 

14 ‘‘(B) equal to 3 percent of the amount ap15 propriated to carry out this subpart for any 

16 year in which such amount appropriated is 

17 greater than $8,000,000; and 

18 ‘‘(2) may reserve funds to award the grant, 

19 contract, or cooperative agreement described in sec20 tion 737.’’. 

21 (c) NATIONAL TECHNICAL ASSISTANCE CENTER.— 

22 (1) SUBPART HEADING.—The subpart heading 

23 for subpart 2 of part D of title VII (20 U.S.C. 

24 1140p et seq.), as so redesignated by subsection 


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1 (a)(1), is amended by striking ‘‘; Coordinating 

2 Center’’. 

3 (2) PURPOSE.—Section 776 (20 U.S.C. 1140p) 

4 is amended— 

5 (A) by redesignating such section as sec6 tion 736 of such Act; and 

7 (B) by striking ‘‘grants, contracts, or coop8 erative agreements under subpart 1, 2, or 3’’ 

9 and inserting ‘‘grants or a cooperative agree10 ment under subpart 1’’. 

11 (3) NATIONAL TECHNICAL ASSISTANCE.—Sec12 tion 777 (20 U.S.C. 1140q) is amended— 

13 (A) by redesignating such section as sec14 tion 737 of such Act; 

15 (B) in the section heading, by striking ‘‘; 

16 COORDINATING CENTER’’; 

17 (C) in subsection (a)(1), by striking ‘‘ap18 propriated under section 778’’ and inserting 

19 ‘‘reserved under section 735(b)(2)’’; 

20 (D) by amending subsection (a)(3)(D) to 

21 read as follows: 

22 ‘‘(D) the subject supported by the grants 

23 or cooperative agreement authorized in subpart 

24 1.’’; 


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1 (E) in subsection (a)(4)(A)(ii), by striking 

2 ‘‘subparts 2, 4, and 5’’ and inserting ‘‘subparts 

3 2 and 5’’; and 

4 (F) in subsection (a)(4)(B), by striking 

5 ‘‘grants, contracts, or cooperative agreements 

6 authorized under subparts 1, 2, and 3’’ each 

7 place it appears and inserting ‘‘grants and co8 operative agreement authorized under subpart 

9 1’’. 

10 (4) AUTHORIZATION OF APPROPRIATIONS.— 

11 Section 778 (20 U.S.C. 1140r) is repealed. 

12 SEC. 704. REPEAL OF COLLEGE ACCESS CHALLENGE 

13 GRANT PROGRAM. 

14 Part E of title VII (20 U.S.C. 1141) is repealed. 

15 TITLE VIII—OTHER REPEALS 

16 SEC. 801. REPEAL OF ADDITIONAL PROGRAMS. 

17 (a) HIGHER EDUCATION ACT OF 1965.—Title VIII 

18 of the Higher Education Act of 1965 (20 U.S.C. 1161a 

19 et seq.) is repealed. 

20 (b) HIGHER EDUCATION OPPORTUNITY ACT.—The 

21 Higher Education Opportunity Act (Public Law 110–315; 

22 122 Stat. 3078 et seq.) is amended by repealing sections 

23 802 and 803. 

24 (c) HIGHER EDUCATION AMENDMENTS OF 1998.— 

25 The Higher Education Amendments of 1998 (Public Law 


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1 105–244; 112 Stat. 1581 et seq.) is amended by repealing 

2 sections 821 and 841. 

3 (d) HIGHER EDUCATION AMENDMENTS OF 1992.— 

4 The Higher Education Amendments of 1992 (Public Law 

5 102–325; 106 Stat. 448 et seq.) is amended by repealing 

6 section 1543. 

7 (e) UNITED STATES INSTITUTE OF PEACE ACT.— 

8 The United States Institute of Peace Act (22 U.S.C. 4601 

9 et seq.) is repealed. 

10 TITLE IX—AMENDMENTS TO 

11 OTHER LAWS 

12 PART A—EDUCATION OF THE DEAF ACT OF 1986 

13 SEC. 901. EDUCATION OF THE DEAF ACT OF 1986. 

14 (a) BOARD OF TRUSTEES.—Section 103(a)(1) of the 

15 Education of the Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) 

16 is amended— 

17 (1) in the matter preceding subparagraph (A), 

18 by striking ‘‘twenty-one’’ and inserting ‘‘twenty19 three’’; 

20 (2) in subparagraph (A)— 

21 (A) by striking ‘‘three public’’ and insert22 ing ‘‘four public’’; 

23 (B) by striking ‘‘one shall’’ and all that 

24 follows through ‘‘, and’’ and inserting ‘‘two 

25 shall be United States Senators, of whom one 


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1 shall be appointed by the Majority Leader of 

2 the Senate and one shall be appointed by the 

3 Minority Leader of the Senate, and’’; and 

4 (C) by striking ‘‘appointed by the Speaker 

5 of the House of Representatives’’ and inserting 

6 ‘‘, of whom one shall be appointed by the 

7 Speaker of the House of Representatives and 

8 one shall be appointed by the Minority Leader 

9 of the House of Representatives’’; and 

10 (3) in subparagraph (B), by striking ‘‘eighteen’’ 

11 and inserting ‘‘nineteen’’. 

12 (b) LAURENT CLERC NATIONAL DEAF EDUCATION

13 CENTER.—Section 104(b)(5) of the Education of the Deaf 

14 Act of 1986 (20 U.S.C. 4304(b)(5)) is amended to read 

15 as follows: 

16 ‘‘(5) The University, for purposes of the ele17 mentary and secondary education programs carried 

18 out by the Clerc Center, shall— 

19 ‘‘(A)(i)(I) provide an assurance to the Sec20 retary that it has adopted and is implementing 

21 challenging State academic standards that meet 

22 the requirements of section 1111(b)(1) of the 

23 Elementary and Secondary Education Act of 

24 1965 (20 U.S.C. 6311(b)(1)); 


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1 ‘‘(II) demonstrate to the Secretary that the 

2 University is implementing a set of high-quality 

3 student academic assessments in mathematics, 

4 reading or language arts, and science, and any 

5 other subjects chosen by the University, that 

6 meet the requirements of section 1111(b)(2) of 

7 such Act (20 U.S.C. 6311(b)(2)); and 

8 ‘‘(III) demonstrate to the Secretary that 

9 the University is implementing an account10 ability system consistent with section 1111(c) of 

11 such Act (20 U.S.C. 6311(c)); or 

12 ‘‘(ii)(I) select the challenging State aca13 demic standards and State academic assess14 ments of a State, adopted and implemented, as 

15 appropriate, pursuant to paragraphs (1) and 

16 (2) of section 1111(b) of such Act (20 U.S.C. 

17 6311(b)); and 

18 ‘‘(II) adopt the accountability system, con19 sistent with section 1111(c) of such Act (20 

20 U.S.C. 6311(c)), of such State; and 

21 ‘‘(B) publicly report, except in a case in 

22 which such reporting would not yield statis23 tically reliable information or would reveal per24 sonally identifiable information about an indi25 vidual student— 


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1 ‘‘(i) the results of the academic as2 sessments implemented under subpara3 graph (A); and 

4 ‘‘(ii) the results of the annual evalua5 tion of the programs at the Clerc Center, 

6 as determined using the accountability sys7 tem adopted under subparagraph (A).’’. 

8 (c) REPEAL OF CULTURAL EXPERIENCES GRANTS

9 PROGRAM.—Part C of title I of the Education of the Deaf 

10 Act of 1986 (20 U.S.C. 4341) is repealed. 

11 (d) REPEAL OF AUTHORIZATION OF APPROPRIA12 TIONS FOR MONITORING AND EVALUATION.—Subsection 

13 (c) of section 205 of the Education of the Deaf Act of 

14 1986 (20 U.S.C. 4355(c)) is repealed. 

15 (e) FEDERAL ENDOWMENT FUNDS.—Section 207 of 

16 the Education of the Deaf Act of 1986 (20 U.S.C. 4357) 

17 is amended— 

18 (1) in the heading of subsection (b), by striking 

19 ‘‘FEDERAL PAYMENTS’’ and inserting ‘‘PAYMENTS’’; 

20 (2) in subsection (b), by striking paragraphs 

21 (1) and (2) and inserting the following: 

22 ‘‘(1) From amounts provided by the Secretary 

23 from funds appropriated under subsections (a) and 

24 (b) of section 212, respectively, the University and 

25 NTID may make payments, in accordance with this 


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1 section, to the Federal endowment fund of the insti2 tution involved. 

3 ‘‘(2) Subject to paragraph (3), in any fiscal 

4 year, the total amount of payments made under 

5 paragraph (1) to the Federal endowment fund may 

6 not exceed the total amount contributed to the fund 

7 from non-Federal sources during such fiscal year. 

8 ‘‘(3) For purposes of paragraph (2), the trans9 fer of funds by an institution involved to the Federal 

10 endowment fund from another endowment fund of 

11 such institution shall not be considered a contribu12 tion from a non-Federal source.’’; 

13 (3) in subsection (e), by striking ‘‘Federal pay14 ment’’ and inserting ‘‘payment under subsection 

15 (b)’’; 

16 (4) in subsection (f), in the matter preceding 

17 paragraph (1), by striking ‘‘Federal payments’’ and 

18 inserting ‘‘payments’’; 

19 (5) in subsection (g)(1), by striking ‘‘Federal 

20 payments to such fund’’ and inserting ‘‘payments 

21 made under subsection (b)’’; 

22 (6) by repealing subsection (h); and 

23 (7) by redesignating subsection (i) as subsection 

24 (h). 


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1 (f) REPEAL OF NATIONAL STUDY.—Section 211 of 

2 the Education of the Deaf Act of 1986 (20 U.S.C. 4360) 

3 is repealed. 

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 

10 each 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 

14 of the fiscal years 2019 through 2024’’. 

15 (h) TECHNICAL AMENDMENTS.—The Education of 

16 the Deaf Act of 1986 is further amended— 

17 (1) in section 112(b)(3) (20 U.S.C. 

18 4332(b)(3)), by striking ‘‘Education and Labor’’ and 

19 inserting ‘‘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 insert23 ing ‘‘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 

15 ‘‘Education and the Workforce’’; and 

16 (5) in section 210(b) (20 U.S.C. 4359b(b)), by 

17 striking ‘‘Education and Labor’’ and inserting 

18 ‘‘Education and the Workforce’’. 


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1 PART B—TRIBALLY CONTROLLED COLLEGES 

2 AND 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 

8 (25 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 

9 Tribally Controlled Colleges and Universities Assistance 

10 Act of 1978 (25 U.S.C. 1801 et seq.) is amended by in11 serting after 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 Assist21 ance 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 Con24 trolled Colleges and Universities Assistance Act of 1978 

25 (25 U.S.C. 1807) is amended— 


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1 (1) by striking subsection (c); and 

2 (2) by redesignating subsection (d) as sub3 section (c). 

4 (e) AMOUNT OF GRANTS.—Section 108(b)(1) of the 

5 Tribally Controlled Colleges and Universities Assistance 

6 Act 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 

9 appropriations become available’’ and inserting ‘‘ of 

10 the amounts appropriated for any fiscal year on or 

11 before July 1 of that fiscal year’’; and 

12 (2) by striking ‘‘January 1’’ and inserting 

13 ‘‘September 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 

24 year’’ after ‘‘necessary’’; 


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1 (2) in paragraph (2), by striking ‘‘for fiscal 

2 year 2009’’ and all that follows through the period 

3 at the end and inserting ‘‘from the amount made 

4 available under section 3(a) for each fiscal year.’’; 

5 (3) in paragraph (3), by striking ‘‘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 

10 inserting ‘‘2019’’. 

11 (g) RULES AND REGULATIONS.—The Tribally Con12 trolled Colleges and Universities Assistance Act of 1978 

13 (25 U.S.C. 1801 et seq.) is amended by striking section 

14 115 (25 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 subpara21 graph (B), title III of the Tribally Controlled 

22 Colleges and Universities Assistance Act of 

23 1978 (25 U.S.C. 1831 et seq.), as such title 

24 was in effect on the day before the date of the 

25 enactment of this Act, shall apply with respect 


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1 to any endowment fund established or funded 

2 under such title before such date of enactment, 

3 except that the Secretary of the Interior may 

4 not make any grants or Federal capital con5 tributions under such title after such date. 

6 (B) TERMINATION.—Subparagraph (A) 

7 shall terminate on the date that is 20 years 

8 after the date of the enactment of this Act. On 

9 or after such date, a tribally controlled college 

10 or university may use the corpus (including the 

11 Federal and institutional capital contribution) 

12 of any endowment fund described in such sub13 paragraph to pay any expenses relating to the 

14 operation or academic programs of such college 

15 or university. 

16 (i) TRIBAL ECONOMIC DEVELOPMENT; AUTHORIZA17 TION OF APPROPRIATIONS.—Section 403 of the Tribally 

18 Controlled Colleges and Universities Assistance Act of 

19 1978 (25 U.S.C. 1852) is amended by striking ‘‘for fiscal 

20 year 2009’’ and all that follows through the period at the 

21 end and inserting ‘‘from the amount made available under 

22 section 3(a) for each fiscal year.’’. 

23 (j) TRIBALLY CONTROLLED POSTSECONDARY CA24 REER AND TECHNICAL INSTITUTIONS.—Section 504 of 

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1 ance Act of 1978 (25 U.S.C. 1864) is amended by striking 

2 ‘‘for fiscal year 2009’’ and all that follows through the 

3 period at the end and inserting ‘‘from the amount made 

4 available under section 3(b) for each fiscal year.’’ 

5 (k) CLERICAL AMENDMENTS.—The Tribally Con6 trolled Colleges and Universities Assistance Act of 1978 

7 (25 U.S.C. 1801 et seq.), as amended by subsections (a) 

8 through (j), is further amended— 

9 (1) by striking ‘‘Bureau of Indian Affairs’’ each 

10 place it appears and inserting ‘‘Bureau of Indian 

11 Education’’; 

12 (2) by striking ‘‘Navajo Community College 

13 Act’’ each place it appears and inserting ‘‘Dine′ Col14 lege Act’’; 

15 (3) by striking ‘‘colleges or universities’’ each 

16 place it appears, including in headings, and inserting 

17 ‘‘colleges and universities’’ and conforming the font 

18 and typeface accordingly; and 

19 (4) in section 109 (25 U.S.C. 1809), by redes20 ignating the second subsection (c) as subsection (d). 

21 SEC. 912. DINE′ COLLEGE ACT. 

22 (a) SHORT TITLE.—The first section of Public Law 

23 92–189 is amended by striking ‘‘this Act may be cited as 

24 the ‘Navajo Community College Act’ ’’ and inserting ‘‘this 

25 Act may be cited as the ‘Dine′ College Act’ ’’. 


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1 (b) REFERENCES.—Any reference to the Navajo 

2 Community College Act in any law (other than this Act), 

3 regulation, map, document, record, or other paper of the 

4 United States shall be deemed to be a reference to the 

5 Dine′ College Act. 

6 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

7 5 of Public Law 92–189 is amended— 

8 (1) in subsection (a)(1), by striking ‘‘for fiscal 

9 years 2009 through 2014’’ and inserting ‘‘from the 

10 amount made available under subsection (b)(1) for 

11 each fiscal year’’; and 

12 (2) in subsection (b)(1), by striking ‘‘such sums 

13 as are necessary for fiscal years 2009 through 

14 2014’’ and inserting ‘‘$13,600,000 for each of fiscal 

15 years 2019 through 2024’’. 

Æ 


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