II 

115TH CONGRESS 

1ST SESSION S. 2201 

To amend the Higher Education Act of 1965 to improve college access 

and college completion for all students. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 6, 2017 

Mr. COONS introduced the following bill; which was read twice and referred 

to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend the Higher Education Act of 1965 to improve 

college access and college completion for all students. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Access, Success, and 

5 Persistence in Reshaping Education Act of 2017’’ or the 

6 ‘‘ASPIRE Act’’. 


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1 SEC. 2. IMPROVING COLLEGE ACCESS AND COMPLETION 

2 FOR ALL STUDENTS. 

3 (a) IN GENERAL.—Part G of title IV of the Higher 

4 Education Act of 1965 (20 U.S.C. 1088 et seq.) is amend5 ed by adding at the end the following: 

6 ‘‘SEC. 493E. IMPROVING COLLEGE ACCESS AND COMPLE7 TION FOR ALL STUDENTS. 

8 ‘‘(a) DEFINITIONS.—Except as otherwise provided in 

9 this section, in this section: 

10 ‘‘(1) AVERAGE STUDENT-RELATED EXPENDI11 TURE.— 

12 ‘‘(A) IN GENERAL.—The term ‘average 

13 student-related expenditure’ means, with re14 spect to the most recent fiscal year ending be15 fore the October of an academic year, the total 

16 amount of an institution’s instructional expend17 itures, student services expenditures, and the 

18 proportion of academic support expenditures 

19 that goes towards instruction, divided by the 

20 number of full-time equivalent students enrolled 

21 in the institution for the academic year. 

22 ‘‘(B) INSTRUCTIONAL EXPENDITURES.— 

23 The term ‘instructional expenditures’— 

24 ‘‘(i) includes— 

25 ‘‘(I) expenditures for the colleges, 

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1 structional divisions of the institution 

2 and expenses for departmental re3 search and public service that are not 

4 separately budgeted; 

5 ‘‘(II) general academic instruc6 tion, occupational and vocational in7 struction, community education, pre8 paratory and adult basic education, 

9 and remedial and tutorial instruction 

10 conducted by the teaching faculty for 

11 the institution’s students; and 

12 ‘‘(III) expenses for both credit 

13 and non-credit activities; 

14 ‘‘(ii) may include information tech15 nology expenses related to instructional ac16 tivities if the institution separately budgets 

17 and expenses information technology re18 sources; and 

19 ‘‘(iii) does not include expenses for 

20 academic administration where the primary 

21 function is administration. 

22 ‘‘(C) STUDENT SERVICES EXPENDI23 TURES.—The term ‘student services expendi24 tures’— 


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1 ‘‘(i) includes expenses for admissions, 

2 registrar activities, and activities whose 

3 primary purpose is to contribute to the 

4 emotional and physical well-being of stu5 dents and to their intellectual, cultural, 

6 and social development outside the context 

7 of the formal instructional program; and 

8 ‘‘(ii) may include information tech9 nology expenses related to student service 

10 activities if the institution separately budg11 ets and expenses information technology 

12 resources, otherwise these expenses are in13 cluded in institutional support. 

14 ‘‘(D) ACADEMIC SUPPORT EXPENDI15 TURES.—The term ‘academic support expendi16 tures’ includes— 

17 ‘‘(i) expenses of activities and services 

18 that support the institution’s primary mis19 sions of instruction, research, and public 

20 service, including— 

21 ‘‘(I) the retention, preservation, 

22 and display of educational materials; 

23 ‘‘(II) organized activities that 

24 provide support services to the aca25 demic functions of the institution; 


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1 ‘‘(III) media such as audiovisual 

2 services; 

3 ‘‘(IV) academic administration; 

4 and 

5 ‘‘(V) formally organized and sep6 arately budgeted academic personnel 

7 development and course and cur8 riculum development expenses; and 

9 ‘‘(ii) information technology expenses 

10 related to academic support activities or, if 

11 an institution does not separately budget 

12 and expense information technology re13 sources, the costs associated with the three 

14 primary programs shall be applied to this 

15 function and the remainder to institutional 

16 support. 

17 ‘‘(E) FULL-TIME EQUIVALENT STUDENTS

18 ENROLLED.—The term ‘full-time equivalent 

19 students enrolled’ means the number of full20 time students enrolled, plus— 

21 ‘‘(i) in the case of an institution of 

22 higher education that is a public, 4-year 

23 institution— 


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1 ‘‘(I) the number of part-time un2 dergraduate students enrolled multi3 plied by 0.403543; and 

4 ‘‘(II) the number of part-time 

5 graduate students enrolled multiplied 

6 by 0.361702; 

7 ‘‘(ii) in the case of an institution of 

8 higher education that is a private, non9 profit or for profit, 4-year institution— 

10 ‘‘(I) the number of part-time un11 dergraduate students enrolled multi12 plied by 0.392857; and 

13 ‘‘(II) the number of part-time 

14 graduate students enrolled multiplied 

15 by 0.382059; 

16 ‘‘(iii) in the case of an institution of 

17 higher education that is a public, 2-year 

18 institution, the number of part-time under19 graduate students enrolled multiplied by 

20 0.335737; and 

21 ‘‘(iv) in the case of an institution of 

22 higher education that is not described in 

23 clause (i), (ii), or (iii), the number of part24 time undergraduate students enrolled mul25 tiplied by 0.397058. 


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1 ‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 

2 The term ‘institution of higher education’ means an 

3 institution of higher education (as defined in section 

4 101(a)) or a proprietary institution of higher edu5 cation (as defined in section 102(b))— 

6 ‘‘(A) that predominately awards more 

7 bachelor’s degrees than associate’s degrees and 

8 certificates; and 

9 ‘‘(B) that enrolls not less than 30 first10 time, full-time, degree- or certificate-seeking un11 dergraduate students. 

12 ‘‘(3) LOW-INCOME OR WORKING CLASS STU13 DENT.—The term ‘low-income or working class stu14 dent’ means a student who is eligible to receive a 

15 Federal Pell Grant. 

16 ‘‘(4) MODERATE-INCOME STUDENT.—The term 

17 ‘moderate-income student’ means a student who is 

18 eligible to receive a Federal Direct Stafford Loan 

19 but not eligible to receive a Federal Pell Grant. 

20 ‘‘(5) REMEDIAL COURSE.—The term ‘remedial 

21 course’ means a course of study that is determined 

22 by the institution which offers such course to be nec23 essary to help a student be prepared for the pursuit 

24 of a first undergraduate bachelor’s degree but does 

25 not count for credit toward the degree. 


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1 ‘‘(6) UNDERREPRESENTED MINORITY.—The 

2 term ‘underrepresented minority’ means American 

3 Indian, Alaskan Native, Black (not of Hispanic ori4 gin), Hispanic (including persons of Mexican, Puerto 

5 Rican, Cuban, and Central or South American ori6 gin), or Pacific Islander minority group. 

7 ‘‘(b) IMPROVING COLLEGE ACCESS.— 

8 ‘‘(1) IN GENERAL.—In order for an institution 

9 of higher education to participate in any student fi10 nancial assistance program under this title, the insti11 tution shall comply with the improving college access 

12 program under this subsection. 

13 ‘‘(2) CALCULATION OF PERCENTAGES OF FED14 ERAL PELL GRANT RECIPIENTS.— 

15 ‘‘(A) IN GENERAL.—For academic year 

16 2017–2018 and for each succeeding academic 

17 year, the Secretary shall determine, for each in18 stitution of higher education, the percentage of 

19 bachelor’s degree-seeking students who enrolled 

20 at the institution for the first-time in a full21 time capacity for the academic year who re22 ceived a Federal Pell Grant for such academic 

23 year. 

24 ‘‘(B) RANKING.— 


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1 ‘‘(i) IN GENERAL.—For academic year 

2 2017–2018 and for each succeeding aca3 demic year, the Secretary shall rank the 

4 institutions according to the percentages 

5 determined under subparagraph (A). 

6 ‘‘(ii) THRESHOLD MARK.—For aca7 demic year 2017–2018 and for each suc8 ceeding academic year, the Secretary shall 

9 determine, based on the rankings under 

10 this subparagraph, the percentage, deter11 mined under subparagraph (A), at which 

12 and above which marks the top 95 percent 

13 of those institutions ranked. 

14 ‘‘(C) FLOOR REACHED.— 

15 ‘‘(i) FLOOR MARK.—For academic 

16 year 2017–2018, the Secretary shall deter17 mine, based on the rankings under sub18 paragraph (B)(i) for such academic year, 

19 the percentage, determined under subpara20 graph (A), at which and above which 

21 marks the top 90 percent of those institu22 tions ranked. 

23 ‘‘(ii) COMPARISON OF THRESHOLD

24 MARK TO FLOOR MARK.—If the threshold 

25 mark determined under subparagraph 


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1 (B)(ii) for an academic year is at or above 

2 the floor mark determined under clause (i), 

3 no institution shall be subject to the provi4 sions of paragraph (3) for such academic 

5 year. 

6 ‘‘(3) CONSEQUENCES OF LOW RANKING.— 

7 ‘‘(A) NOTIFICATION.— 

8 ‘‘(i) IN GENERAL.— 

9 ‘‘(I) IN GENERAL.—Subject to 

10 paragraph (2)(C)(ii), for academic 

11 year 2017–2018 and for each suc12 ceeding academic year, the Secretary 

13 shall notify each institution of higher 

14 education that is in the bottom 5 per15 cent of those institutions ranked 

16 under paragraph (2)(B)— 

17 ‘‘(aa) that the institution is 

18 in such bottom 5 percent of those 

19 institutions ranked; 

20 ‘‘(bb) of the threshold mark 

21 described in paragraph (2)(B)(ii) 

22 that such institution must meet 

23 or rise above; and 

24 ‘‘(cc) that the institution has 

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1 retary to be removed from the 

2 bottom 5 percent of those institu3 tions ranked. 

4 ‘‘(II) APPEAL.—An institution of 

5 higher education that is in the bottom 

6 5 percent of those institutions ranked 

7 under paragraph (2)(B) for an aca8 demic year may appeal to the Sec9 retary, within 90 days of the notifica10 tion under subclause (I), to be re11 moved from such bottom 5 percent 

12 ranking if— 

13 ‘‘(aa) the Secretary’s cal14 culation of its ranking is not ac15 curate, and that recalculation of 

16 such ranking would raise the 

17 ranking of the institution above 

18 the bottom 5 percent of those in19 stitutions ranked; or 

20 ‘‘(bb) the institution’s per21 centage of all bachelor’s degree22 seeking students enrolled at the 

23 institution who received a Fed24 eral Pell Grant for the academic 


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1 year is sufficiently high, as deter2 mined by the Secretary. 

3 ‘‘(III) AUTOMATIC REMOVAL.— 

4 An institution of higher education 

5 that is in the bottom 5 percent of 

6 those institutions ranked under para7 graph (2)(B) for an academic year 

8 but whose average percentage for the 

9 academic year and the 2 preceding 

10 academic years of bachelor’s degree11 seeking students who enrolled at the 

12 institution for the first-time in a full13 time capacity for the academic year 

14 and the 2 preceding academic years 

15 who received a Federal Pell Grant for 

16 the academic year and the 2 preceding 

17 academic years is at or above the 

18 threshold mark described in para19 graph (2)(B)(ii) for the academic 

20 year, shall be automatically removed 

21 from such bottom 5 percent ranking. 

22 ‘‘(ii) CONSUMER WARNING REPORT BY

23 THE SECRETARY.— 

24 ‘‘(I) IN GENERAL.—For academic 

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1 ceeding academic year, the Secretary 

2 shall issue a report, following resolu3 tion of all appeals brought pursuant 

4 to the 90-day appeal period, listing 

5 each institution of higher education 

6 that is in the bottom 5 percent of 

7 those institutions ranked under para8 graph (2)(B), and not removed from 

9 such ranking in accordance with sub10 clause (II) or (III) of clause (i), along 

11 with the percentage of bachelor’s de12 gree-seeking students who enrolled at 

13 each such institution for the first-time 

14 in a full-time capacity for the aca15 demic year who received a Federal 

16 Pell Grant for such academic year. 

17 ‘‘(II) INCORPORATION INTO EX18 ISTING DATA SOURCES.—In issuing 

19 the report under subclause (I), the 

20 Secretary shall incorporate the list of 

21 institutions in the bottom 5 percent of 

22 those institutions ranked and not re23 moved from the ranking into data 

24 sources of the Department that exist 

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1 cess, Success, and Persistence in Re2 shaping Education Act of 2017, such 

3 as the College Scorecard. 

4 ‘‘(B) PLAN.—An institution of higher edu5 cation that is included in the report under sub6 paragraph (A)(ii) shall develop a plan, not later 

7 than 1 year after the date of the notification 

8 under subparagraph (A)(i)(I) and in consulta9 tion with the Secretary, to meet or rise above 

10 the threshold mark described in paragraph 

11 (2)(B)(ii) applicable for the academic year for 

12 which this institution was included in the report 

13 under subparagraph (A)(ii) that triggered such 

14 determination. 

15 ‘‘(C) CALCULATION OF AVERAGE.—For 

16 each institution of higher education that is in17 cluded in the report under subparagraph (A)(ii) 

18 for an academic year, the Secretary shall— 

19 ‘‘(i) grant the institution a hold harm20 less year for the academic year succeeding 

21 the academic year for which the institution 

22 receives notification under subparagraph 

23 (A)(i)(I); and 

24 ‘‘(ii) determine the average percentage 

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1 lowing the hold harmless academic year de2 scribed in clause (i) of bachelor’s degree3 seeking students who enrolled at the insti4 tution for the first-time in a full-time ca5 pacity for each of such 3 succeeding aca6 demic years who received a Federal Pell 

7 Grant for each of such 3 succeeding aca8 demic years. 

9 ‘‘(D) FAILURE TO IMPROVE.— 

10 ‘‘(i) IN GENERAL.—Except as pro11 vided in clause (ii), if an institution of 

12 higher education has an average percent13 age determined under subparagraph (C)(ii) 

14 that is less than the threshold mark de15 scribed in paragraph (2)(B)(ii) for the aca16 demic year for which the institution was 

17 included in the report under subparagraph 

18 (A)(ii) that triggered such determination, 

19 the Secretary shall impose on such institu20 tion a penalty described in subparagraph 

21 (E). 

22 ‘‘(ii) DELAY OF PENALTY.— 

23 ‘‘(I) IN GENERAL.—The Sec24 retary may delay imposing a penalty 

25 described in subparagraph (E) with 


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1 respect to an institution that has an 

2 average percentage determined under 

3 subparagraph (C)(ii) that is less than 

4 the threshold mark described in para5 graph (2)(B)(ii) for the academic year 

6 for which the institution was included 

7 in the report under subparagraph 

8 (A)(ii) that triggered such determina9 tion, but whose percentage determined 

10 for the most recent academic year is 

11 at or above such threshold mark. 

12 ‘‘(II) PERIOD OF DELAY.—The 

13 Secretary may delay imposing a pen14 alty under subclause (I) for a period 

15 of not more than 2 years. 

16 ‘‘(III) NEW 3-YEAR AVERAGE.— 

17 With respect to an institution for 

18 which the Secretary delays imposing a 

19 penalty under this clause for a period 

20 of not more than 2 years, the Sec21 retary, at the end of such delay pe22 riod, shall determine the average per23 centage over the 3 preceding years of 

24 bachelor’s degree-seeking students 

25 who enrolled at the institution for the 


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1 first-time in a full-time capacity for 

2 each of such 3 preceding academic 

3 years and who received a Federal Pell 

4 Grant for each of such 3 preceding 

5 academic years. If the institution has 

6 an average percentage that is less 

7 than the threshold mark described in 

8 paragraph (2)(B)(ii) for the academic 

9 year for which the institution was in10 cluded in the report under subpara11 graph (A)(ii) that triggered such de12 termination, the Secretary shall im13 pose on such institution a penalty de14 scribed in subparagraph (E). 

15 ‘‘(E) PENALTIES.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall impose a penalty under this para18 graph in an amount determined under this 

19 subparagraph. 

20 ‘‘(ii) AMOUNT OF PENALTY.— 

21 ‘‘(I) IN GENERAL.—The penalty 

22 to be imposed under this subpara23 graph with respect to an institution 

24 shall be a fee-per-student penalty, in 

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1 dents determined with respect to such 

2 institution under subclause (II) for an 

3 academic year is multiplied by the in4 stitution’s average student-related ex5 penditure for the academic year. 

6 ‘‘(II) NUMBER OF ADDITIONAL

7 STUDENTS TO BE DETERMINED.— 

8 With respect to an institution of high9 er education that is subject to the 

10 penalty under this subparagraph, the 

11 Secretary shall determine the total 

12 number of additional students the in13 stitution would need to enroll over 3 

14 years as Federal Pell Grant recipients 

15 to meet the threshold mark described 

16 in paragraph (2)(B)(ii). Such number 

17 shall be calculated by determining the 

18 percentage equal to subtracting the 

19 average percentage determined under 

20 subparagraph (C)(ii) from the thresh21 old mark described in paragraph 

22 (2)(B)(ii) for the academic year for 

23 which the institution was included in 

24 the report under subparagraph (A)(ii) 

25 that triggered such determination, 


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1 and multiplying such determined per2 centage by the number of bachelor’s 

3 degree-seeking students who enrolled 

4 at the institution for the first-time in 

5 a full-time capacity for an academic 

6 year over the 3 preceding academic 

7 years. 

8 ‘‘(iii) COLLECTION OF PENALTY

9 FEES.—The Secretary shall— 

10 ‘‘(I) collect penalty fees imposed 

11 under this paragraph not later than 1 

12 year after such penalty is imposed; 

13 and 

14 ‘‘(II) use the fees collected under 

15 subclause (I) to fund the completion 

16 improvement program under sub17 section (d) and the completion bonus 

18 program under subsection (e). 

19 ‘‘(iv) PROHIBITION ON USE OF INSTI20 TUTIONAL NEED-BASED GRANT AID TO PAY

21 FEES.—An institution of higher education 

22 that is subject to a penalty under this 

23 paragraph may not, in order to pay such 

24 penalty fee— 


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1 ‘‘(I) reduce the amount of insti2 tutional need-based grant aid awarded 

3 to students to attend the institution; 

4 or 

5 ‘‘(II) increase tuition or fees. 

6 ‘‘(F) APPEALS.— 

7 ‘‘(i) IN GENERAL.—An institution of 

8 higher education that is subject to a pen9 alty under this paragraph may appeal the 

10 decision to impose such penalty or the 

11 amount of the penalty to the Secretary. 

12 ‘‘(ii) CONTENT OF APPEAL.—The ap13 peals process shall permit the institution to 

14 demonstrate, to the satisfaction of the Sec15 retary— 

16 ‘‘(I) that there was a miscalcula17 tion of the penalty amount; or 

18 ‘‘(II) that there is some unfore19 seen and extreme circumstance that 

20 should warrant a waiver from such 

21 penalty or a reduction in the amount 

22 of such penalty. 

23 ‘‘(c) IMPROVING COMPLETION.— 

24 ‘‘(1) IN GENERAL.— 


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1 ‘‘(A) IN GENERAL.—In order for an insti2 tution of higher education to participate in any 

3 student financial assistance program under this 

4 title, the institution shall comply with the im5 proving college completion program under this 

6 subsection. 

7 ‘‘(B) ELECTION BY PUBLIC OR OTHER

8 NONPROFIT INSTITUTIONS.—An institution of 

9 higher education that is a public or other non10 profit institution of higher education may elect 

11 for the Secretary not to impose on such institu12 tion a penalty described in paragraph (3)(E). 

13 An institution that makes such election shall 

14 not be eligible to receive a grant under the com15 pletion improvement program under subsection 

16 (d) or the completion bonus program under 

17 subsection (e). 

18 ‘‘(C) DEFINITION OF INSTITUTION OF

19 HIGHER EDUCATION.—In this subsection, the 

20 term ‘institution of higher education’ means an 

21 institution of higher education (as defined in 

22 section 101(a)) or a proprietary institution of 

23 higher education (as defined in section 

24 102(b))— 


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1 ‘‘(i) that predominately awards more 

2 bachelor’s degrees than associate’s degrees 

3 and certificates; and 

4 ‘‘(ii) that enrolls not less than 30 

5 first-time, full-time bachelor’s degree- or 

6 equivalent-degree-seeking undergraduate 

7 students. 

8 ‘‘(2) CALCULATION OF PERCENTAGES OF COM9 PLETION.— 

10 ‘‘(A) IN GENERAL.—For academic year 

11 2017–2018 and for each succeeding academic 

12 year, the Secretary shall determine, for each in13 stitution of higher education that participates 

14 in any program under this title, the percentage 

15 of first-time, full-time bachelor’s degree-seeking 

16 students who enrolled at the institution who 

17 graduate within 6 years. 

18 ‘‘(B) RANKING.— 

19 ‘‘(i) IN GENERAL.—For academic year 

20 2017–2018 and for each succeeding aca21 demic year, the Secretary shall rank the 

22 institutions according to the percentages 

23 determined under subparagraph (A). 

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1 ceeding academic year, the Secretary shall 

2 determine, based on the rankings under 

3 clause (i), the percentage, determined 

4 under subparagraph (A), at which and 

5 above which marks the top 95 percent of 

6 the institutions ranked. 

7 ‘‘(iii) RANKINGS FOR PEER GROUPS

8 OF INSTITUTIONS.— 

9 ‘‘(I) IN GENERAL.—For academic 

10 year 2017–2018 and for each suc11 ceeding academic year, the Secretary 

12 shall rank the institutions according 

13 to the percentages determined under 

14 subparagraph (A) in each peer group 

15 of institutions described in subclause 

16 (II). 

17 ‘‘(II) PEER GROUPS.—For aca18 demic year 2017–2018 and for each 

19 succeeding academic year, the Sec20 retary shall establish peer groups of 

21 institutions. Each peer group shall in22 clude approximately 10 to 15, but not 

23 less than 3, institutions that are in24 cluded in such group based on similar 

25 institutional characteristics. Such 


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1 characteristics shall include the fol2 lowing: 

3 ‘‘(aa) The percentage of 

4 first-time, full-time students en5 rolled at the institution who re6 ceive a Federal Pell Grant. 

7 ‘‘(bb) The average SAT or 

8 ACT score of first-time, full-time 

9 students enrolled at the institu10 tion. 

11 ‘‘(cc) The average high 

12 school GPA of first-time, full13 time students enrolled at the in14 stitution. 

15 ‘‘(dd) The institution’s aver16 age student-related expenditure. 

17 ‘‘(ee) Other characteristics 

18 that the Secretary determines are 

19 appropriate. 

20 ‘‘(III) PEER GROUP ADJUST21 MENT.—To provide for fair compari22 sons among institutions serving dif23 ferent student populations and insti24 tutional resources, an institution that 

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1 tutions ranked under clause (i) but in 

2 the top two-thirds of institutions 

3 ranked in the institution’s peer group, 

4 as determined under subclause (II), 

5 shall be removed from the bottom 5 

6 percent of the institutions ranked 

7 under clause (i). The Secretary shall 

8 not impose on such an institution a 

9 penalty described in paragraph 

10 (3)(E). 

11 ‘‘(C) FLOOR REACHED.— 

12 ‘‘(i) FLOOR MARK.—For academic 

13 year 2017–2018, the Secretary shall deter14 mine, based on the rankings under sub15 paragraph (B)(i) for such academic year, 

16 the percentage, determined under subpara17 graph (A), at which and above which 

18 marks the top 90 percent of those institu19 tions ranked. 

20 ‘‘(ii) COMPARISON OF THRESHOLD

21 MARK TO FLOOR MARK.—If the threshold 

22 mark determined under subparagraph 

23 (B)(ii) for an academic year is at or above 

24 the floor mark determined under clause (i), 

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1 sions of paragraph (3) for such academic 

2 year. 

3 ‘‘(3) CONSEQUENCES OF LOW RANKING.— 

4 ‘‘(A) IN GENERAL.— 

5 ‘‘(i) IN GENERAL.—Subject to para6 graph (2)(C)(ii), for academic year 2017– 

7 2018 and for each succeeding academic 

8 year, the Secretary shall notify each insti9 tution of higher education that is in the 

10 bottom 5 percent of those institutions 

11 ranked under paragraph (2)(B)(i) (and not 

12 removed under paragraph 

13 (2)(B)(iii)(III))— 

14 ‘‘(I) that the institution is in 

15 such bottom 5 percent of those insti16 tutions ranked for the academic year; 

17 ‘‘(II) of the applicable threshold 

18 mark described in paragraph 

19 (2)(B)(ii) that such institution must 

20 meet or rise above; and 

21 ‘‘(III) that the institution has 90 

22 days to appeal to the Secretary to be 

23 removed from the bottom 5 percent of 

24 those institutions ranked. 


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1 ‘‘(ii) APPEAL.—An institution of high2 er education that is in the bottom 5 per3 cent of those institutions ranked under 

4 paragraph (2)(B)(i) (and not removed 

5 under paragraph (2)(B)(iii)(III)) for an 

6 academic year may appeal to the Sec7 retary, within 90 days of the notification 

8 under clause (i), to be removed from such 

9 bottom 5 percent ranking if the Secretary’s 

10 calculation of its ranking is not accurate, 

11 and that recalculation of such ranking 

12 would raise the ranking of the institution 

13 above the bottom 5 percent of those insti14 tutions ranked. 

15 ‘‘(iii) AUTOMATIC REMOVAL.—An in16 stitution of higher education that is in the 

17 bottom 5 percent of those institutions 

18 ranked under paragraph (2)(B)(i) (and not 

19 removed under paragraph (2)(B)(iii)(III)) 

20 for an academic year but whose average 

21 percentage for the academic year and the 

22 2 preceding academic years of first-time, 

23 full-time bachelor’s degree-seeking students 

24 who enrolled at the institution who grad25 uate within 6 years is at or above the 


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1 threshold mark described in paragraph 

2 (2)(B)(ii) for the academic year, shall be 

3 automatically removed from such bottom 5 

4 percent ranking. 

5 ‘‘(iv) CONSUMER WARNING REPORT

6 BY THE SECRETARY.— 

7 ‘‘(I) IN GENERAL.—For academic 

8 year 2017–2018 and for each suc9 ceeding academic year, the Secretary 

10 shall issue a report, following resolu11 tion of all appeals brought pursuant 

12 to the 90-day appeal period, listing 

13 each institution of higher education 

14 that is in the bottom 5 percent of 

15 those institutions ranked under para16 graph (2)(B)(i), and not removed 

17 from such ranking in accordance with 

18 clause (ii) or (iii) or paragraph 

19 (2)(B)(iii)(III), along with the per20 centage of first-time, full-time bach21 elor’s degree-seeking students who en22 rolled at each such institution who 

23 graduate within 6 years. 

24 ‘‘(II) INCORPORATION INTO EX25 ISTING DATA SOURCES.—In issuing 


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1 the report under subclause (I), the 

2 Secretary shall incorporate the list of 

3 institutions in the bottom 5 percent of 

4 those institutions ranked and not re5 moved into data sources of the De6 partment that exist on the date of en7 actment of the Access, Success, and 

8 Persistence in Reshaping Education 

9 Act of 2017, such as the College 

10 Scorecard. In incorporating the list of 

11 institutions into data sources, the Sec12 retary shall indicate which of such in13 stitutions participate in the comple14 tion improvement program under sub15 section (d). 

16 ‘‘(B) PLAN.—For academic year 2017– 

17 2018 and for each fifth succeeding academic 

18 year, an institution of higher education that is 

19 included in the report under subparagraph 

20 (A)(iv) shall develop a plan, not later than 1 

21 year after the date of the notification under 

22 subparagraph (A)(i) and in consultation with 

23 the Secretary, to meet or rise above the thresh24 old mark described in paragraph (2)(B)(ii), ap25 plicable for the academic year for which this inVerDate Sep 11 2014 21:31 Dec 12, 2017 Jkt 079200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S2201.IS S2201

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1 stitution was included in the report under sub2 paragraph (A)(iv) that triggered such deter3 mination. 

4 ‘‘(C) CALCULATION OF AVERAGE.— 

5 ‘‘(i) IN GENERAL.—For academic year 

6 2017–2018 and for each fifth succeeding 

7 academic year, for each institution of high8 er education that is included in the report 

9 under subparagraph (A)(iii) for an aca10 demic year, the Secretary shall— 

11 ‘‘(I) grant the institution 2 hold 

12 harmless years for the academic years 

13 succeeding the academic year for 

14 which the institution receives notifica15 tion under subparagraph (A)(i); and 

16 ‘‘(II) determine the average per17 centage over the 3 succeeding aca18 demic years (as determined under 

19 clause (ii)) following the hold harm20 less academic years described in 

21 clause (i) of first-time, full-time bach22 elor’s degree-seeking students who en23 rolled at the institution who graduate 

24 within 6 years. 


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1 ‘‘(ii) UNDER-RESOURCED YEARS.—In 

2 determining the 3 succeeding academic 

3 years under clause (i)(II), the Secretary 

4 shall skip any academic year that succeeds 

5 an academic year for which less than 

6 $25,000,000 is collected under subsection 

7 (b)(3)(E). 

8 ‘‘(D) FAILURE TO IMPROVE.— 

9 ‘‘(i) IN GENERAL.—Except as pro10 vided in clause (ii) or paragraph (1)(B), if 

11 an institution of higher education has an 

12 average percentage determined under sub13 paragraph (C)(i)(II) that is less than the 

14 applicable threshold mark described in 

15 paragraph (2)(B)(ii), the Secretary shall 

16 impose on such institution a penalty de17 scribed in subparagraph (E). 

18 ‘‘(ii) DELAY OF PENALTY.— 

19 ‘‘(I) IN GENERAL.—The Sec20 retary may delay imposing a penalty 

21 described in subparagraph (E) with 

22 respect to an institution that has an 

23 average percentage determined under 

24 subparagraph (C)(i)(II) that is less 

25 than the applicable threshold mark 


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1 described in paragraph (2)(B)(ii), but 

2 whose percentage determined for the 

3 most recent academic year is at or 

4 above such threshold mark. 

5 ‘‘(II) PERIOD OF DELAY.—The 

6 Secretary may delay imposing a pen7 alty under subclause (I) for a period 

8 of not more than 2 years. 

9 ‘‘(III) NEW AVERAGE.—With re10 spect to an institution for which the 

11 Secretary delays imposing a penalty 

12 under this clause for a period of not 

13 more than 2 years, the Secretary, at 

14 the end of such delay period, shall de15 termine the average percentage over 

16 the 3 preceding years of first-time, 

17 full-time bachelor’s degree-seeking 

18 students who enrolled at the institu19 tion who graduate within 6 years. If 

20 the institution has an average per21 centage that is less than the threshold 

22 mark described in paragraph 

23 (2)(B)(ii), the Secretary shall impose 

24 on such institution a penalty described 

25 in subparagraph (E). 


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1 ‘‘(E) PENALTIES.— 

2 ‘‘(i) FIRST PENALTY YEAR.— 

3 ‘‘(I) IN GENERAL.—Beginning 

4 with the fifth academic year after 

5 which penalty fees are collected under 

6 subsection (b)(3)(E), an institution of 

7 higher education that is subject to a 

8 penalty under this paragraph— 

9 ‘‘(aa) that is a proprietary 

10 institution of higher education 

11 (as defined in section 102(b)), 

12 shall pay to the Secretary a 

13 $1,000,000 penalty; and 

14 ‘‘(bb) that is not a propri15 etary institution of higher edu16 cation (as defined in section 

17 102(b)), shall pay to the Sec18 retary for an academic year an 

19 amount equal to 25 percent of 

20 the total amount of funds made 

21 available under subsection (d) to 

22 the institution during the 4 aca23 demic years preceding the aca24 demic year for which the penalty 

25 is due under this paragraph. 


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1 ‘‘(II) USE OF PENALTIES.—The 

2 Secretary shall use the penalty fees 

3 under this clause to fund the comple4 tion improvement program under sub5 section (d) and the completion bonus 

6 program under subsection (e). 

7 ‘‘(ii) SECOND PENALTY YEAR.—One 

8 year after the first academic year for 

9 which an institution of higher education 

10 that is not a proprietary institution of 

11 higher education (as defined in section 

12 102(b)) pays a penalty under clause 

13 (i)(I)(bb), the Secretary shall determine 

14 the average percentage for such year after 

15 such first academic year and the 2 pre16 ceding academic years of first-time, full17 time bachelor’s degree-seeking students 

18 who enrolled at the institution who grad19 uate within 6 years. If such average per20 centage is less than the threshold mark de21 scribed in paragraph (2)(B)(ii) for such 

22 year after such first academic year, the in23 stitution of higher education shall pay to 

24 the Secretary for such year after such first 

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1 cent of the total amount of funds made 

2 available under subsection (d) to the insti3 tution during the 5 academic years pre4 ceding the academic year for which the 

5 penalty is due under this clause. The Sec6 retary shall use such penalty fees to fund 

7 the completion improvement program 

8 under subsection (d) and the completion 

9 bonus program under subsection (e). 

10 ‘‘(iii) THIRD PENALTY YEAR.—Two 

11 years after the first academic year for 

12 which an institution of higher education 

13 that is not a proprietary institution of 

14 higher education (as defined in section 

15 102(b)) pays a penalty under clause 

16 (i)(I)(bb), the Secretary shall determine 

17 the average percentage for such second 

18 year after such first academic year and the 

19 2 preceding academic years of first-time, 

20 full-time bachelor’s degree-seeking students 

21 who enrolled at the institution who grad22 uate within 6 years. If such average per23 centage is less than the threshold mark de24 scribed in paragraph (2)(B)(ii) for such 

25 second year after such first academic year, 


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1 the institution of higher education shall 

2 pay to the Secretary for such second year 

3 after such first academic year an amount 

4 equal to 50 percent of the total amount of 

5 funds made available under subsection (d) 

6 to the institution during the 6 academic 

7 years preceding the academic year for 

8 which the penalty is due under this clause. 

9 The Secretary shall use such penalty fees 

10 to fund the completion improvement pro11 gram under subsection (d) and the comple12 tion bonus program under subsection (e). 

13 ‘‘(iv) PROHIBITIONS.—An institution 

14 of higher education that is subject to a 

15 penalty under this subparagraph— 

16 ‘‘(I) shall ensure that students 

17 enrolled at the institution receive the 

18 full amount of funding under this title 

19 they would otherwise have received 

20 had the institution not been subject to 

21 such penalty; and 

22 ‘‘(II) may not, in order to pay for 

23 the penalty fee— 

24 ‘‘(aa) reduce the amount of 

25 institutional need-based grant aid 


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1 awarded to students to attend 

2 the institution; and 

3 ‘‘(bb) raise tuition or fees. 

4 ‘‘(v) WAIVER.—The Secretary may 

5 waive or reduce a penalty under this sub6 paragraph if the Secretary determines such 

7 a waiver is necessary to avoid extreme 

8 hardship for the students enrolled at the 

9 institution of higher education on which 

10 the penalty would be imposed. 

11 ‘‘(vi) PAYMENT PLAN.—The Secretary 

12 may allow an institution of higher edu13 cation that owes a penalty under this sub14 paragraph to enter into a payment plan to 

15 pay such penalty amount. 

16 ‘‘(F) APPEALS.— 

17 ‘‘(i) IN GENERAL.—An institution of 

18 higher education that is subject to a pen19 alty under this paragraph may appeal the 

20 decision to impose such penalty to the Sec21 retary. 

22 ‘‘(ii) CONTENT OF APPEAL.—The ap23 peals process shall permit the institution to 

24 demonstrate, to the satisfaction of the Sec25 retary that there is some unforeseen and 


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1 extreme circumstance that should warrant 

2 a waiver from such penalty, a reduction in 

3 the amount of such penalty, or removal of 

4 the institution from the bottom 5 percent 

5 of those institutions ranked under para6 graph (2)(B). 

7 ‘‘(d) COMPLETION IMPROVEMENT PROGRAM.— 

8 ‘‘(1) IN GENERAL.—From funds available 

9 under paragraph (5), the Secretary shall establish a 

10 completion improvement program to award grants to 

11 eligible institutions of higher education to support 

12 reforms to improve completion rates. 

13 ‘‘(2) ELIGIBLE INSTITUTIONS.—An institution 

14 of higher education is eligible to receive a grant 

15 under this subsection if the institution— 

16 ‘‘(A) is a public or other nonprofit institu17 tion of higher education that is in the bottom 

18 5 percent of those institutions ranked under 

19 subsection (c)(2)(B); 

20 ‘‘(B) has not been removed from the bot21 tom 5 percent of those institutions ranked pur22 suant to paragraph (2)(B)(iii)(III) or (3)(A) of 

23 subsection (c); and 

24 ‘‘(C) has not elected to be exempt under 

25 subsection (c)(1)(B). 


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1 ‘‘(3) DETERMINATION OF GRANT AMOUNT.— 

2 ‘‘(A) IN GENERAL.—In awarding grants 

3 under this subsection, the Secretary shall deter4 mine a grant amount for each eligible institu5 tion according to the formula under subpara6 graph (B). 

7 ‘‘(B) GRANT AMOUNT FORMULA.— 

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clause (iii), the grant amount for 

10 an eligible institution described in para11 graph (2) for a fiscal year shall be equal 

12 to the Pell weight of such institution for 

13 the fiscal year, determined under clause 

14 (ii), multiplied by the amount available 

15 under paragraph (5) for such fiscal year. 

16 ‘‘(ii) PELL WEIGHT.— 

17 ‘‘(I) IN GENERAL.—The Pell 

18 weight of an eligible institution for a 

19 fiscal year shall be equal to a percent20 age that is determined by dividing the 

21 institution’s Pell enrollment deter22 mined under subclause (II) for the fis23 cal year by the total Pell enrollment 

24 determined under subclause (III) for 

25 the fiscal year. 


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1 ‘‘(II) INSTITUTION’S PELL EN2 ROLLMENT.—An eligible institution’s 

3 Pell enrollment for a fiscal year shall 

4 be equal to the percentage of bach5 elor’s degree-seeking students enrolled 

6 at the institution for the academic 

7 year that ended immediately pre8 ceding such fiscal year who received a 

9 Federal Pell Grant for such academic 

10 year. 

11 ‘‘(III) TOTAL PELL ENROLL12 MENT.—The total Pell enrollment for 

13 a fiscal year shall be equal to the sum 

14 of the percentages of bachelor’s de15 gree-seeking students enrolled at each 

16 eligible institution, described in para17 graph (2), for the academic year that 

18 ended immediately preceding such fis19 cal year who received a Federal Pell 

20 Grant for such academic year. 

21 ‘‘(iii) MAXIMUM GRANT AMOUNT.— 

22 The maximum grant amount for an eligible 

23 institution described in paragraph (2) for a 

24 fiscal year shall be $2,000,000. An eligible 

25 institution may choose to receive a grant 


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1 amount that is less than $2,000,000. Any 

2 amounts available under paragraph (5) for 

3 such fiscal year that are remaining after 

4 awarding grants in accordance with this 

5 subparagraph shall be used to carry out 

6 the completion bonus program under sub7 section (e). 

8 ‘‘(4) USE OF FUNDS.—An institution of higher 

9 education that receives a grant under this subsection 

10 shall use the grant funds for reforms and practices 

11 that are part of the improvement plan of the institu12 tion, as described under subsection (c)(3)(B)(i), 

13 which may include the following: 

14 ‘‘(A) Increasing funds available for Federal 

15 Work-Study Programs for undergraduate stu16 dents. 

17 ‘‘(B) Increasing need-based institutional 

18 aid to students who are eligible for Federal Pell 

19 Grants. 

20 ‘‘(C) Enhancing academic advising and 

21 student support services. 

22 ‘‘(D) Expanding accelerated learning op23 portunities. 

24 ‘‘(E) Improving remedial course offerings. 


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1 ‘‘(F) Data- and technology-driven efforts 

2 to increase college completion rates. 

3 ‘‘(G) Enhancing regular and proactive ca4 reer advising and loan counseling services, in5 cluding post-enrollment services. 

6 ‘‘(H) Efforts to close completion gaps— 

7 ‘‘(i) between non-low-income or work8 ing class students and low-income or work9 ing class students; and 

10 ‘‘(ii) between non-underrepresented 

11 minority students and underrepresented 

12 minority students. 

13 ‘‘(5) AVAILABLE FUNDS.—Funds shall be avail14 able to carry out this subsection from the penalty 

15 fees collected under subsections (b)(3)(E) and 

16 (c)(3)(E). 

17 ‘‘(e) COMPLETION BONUS PROGRAM.— 

18 ‘‘(1) IN GENERAL.—From funds available 

19 under paragraph (5), the Secretary shall establish a 

20 completion bonus program to award grants on a 

21 competitive basis to eligible institutions of higher 

22 education to support reforms to improve completion 

23 rates. 


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1 ‘‘(2) ELIGIBLE INSTITUTIONS.—An institution 

2 of higher education is eligible to receive a grant 

3 under this subsection if the institution— 

4 ‘‘(A) is not in the bottom 5 percent of 

5 those institutions ranked under subsection 

6 (c)(2)(B); and 

7 ‘‘(B) is not in the bottom 5 percent of 

8 those institutions ranked under subsection 

9 (b)(2)(B). 

10 ‘‘(3) APPLICATION AND PRIORITY.— 

11 ‘‘(A) APPLICATION.—An eligible institution 

12 that desires a grant under this subsection shall 

13 submit an application to the Secretary at such 

14 time, in such manner, and containing such in15 formation as the Secretary may require. 

16 ‘‘(B) CONSIDERATION AND PRIORITY.—In 

17 awarding grants under this subsection, the Sec18 retary— 

19 ‘‘(i) may consider an eligible institu20 tion’s affordability, student loan repayment 

21 rate, and other factors; and 

22 ‘‘(ii) shall give priority to an eligible 

23 institution that is a part B institution (as 

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1 ing institution (as described in section 

2 371(a)). 

3 ‘‘(4) USE OF FUNDS.—An eligible institution 

4 that receives a grant under this subsection shall use 

5 the grant funds for reforms and practices to improve 

6 completion rates, which may include the following: 

7 ‘‘(A) Increasing funds available for Federal 

8 Work-Study Programs for undergraduate stu9 dents. 

10 ‘‘(B) Increasing need-based institutional 

11 aid to students who are eligible for Federal Pell 

12 Grants. 

13 ‘‘(C) Enhancing academic advising and 

14 student support services. 

15 ‘‘(D) Expanding accelerated learning op16 portunities. 

17 ‘‘(E) Improving remedial course offerings. 

18 ‘‘(F) Data- and technology-driven efforts 

19 to increase college completion rates. 

20 ‘‘(G) Enhancing regular and proactive ca21 reer advising and loan counseling services, in22 cluding post-enrollment services. 

23 ‘‘(H) Efforts to close completion gaps— 


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1 ‘‘(i) between non-low-income or work2 ing class students and low-income or work3 ing class students; and 

4 ‘‘(ii) between non-underrepresented 

5 minority students and underrepresented 

6 minority students. 

7 ‘‘(5) AVAILABLE FUNDS.—Funds shall be avail8 able to carry out this subsection from funds from 

9 the penalty fees collected under subsections 

10 (b)(3)(E) and (c)(3)(E) that are remaining after 

11 grants are awarded for the completion improvement 

12 program under subsection (d). 

13 ‘‘(f) NON-FINANCIAL REWARD BONUS PROGRAM.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall award 

15 non-financial rewards to institutions of higher edu16 cation that have a proven record of making college 

17 more affordable and increasing college access and 

18 success for low-income or working class students and 

19 moderate-income students. 

20 ‘‘(2) INSTITUTIONAL ELIGIBILITY.—An institu21 tion of higher education is eligible for a non-finan22 cial reward under this subsection for an academic 

23 year if— 

24 ‘‘(A) the percentage of first-time, full-time 

25 bachelor’s degree-seeking students who enrolled 


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1 at the institution for the academic year who re2 ceived a Federal Pell Grant for such academic 

3 year falls within the top 50 percent of ranked 

4 institutions, as determined by the Secretary for 

5 the academic year; 

6 ‘‘(B) the percentage of first-time, full-time 

7 bachelor’s degree-seeking students who enrolled 

8 at the institution who graduate within 6 years 

9 falls within the top 25 percent of ranked insti10 tutions, as determined by the Secretary for the 

11 academic year; and 

12 ‘‘(C) the institution is not under Federal 

13 investigation for a sanction for an academic or 

14 financial irregularity. 

15 ‘‘(3) APPLICATIONS.—An institution of higher 

16 education that desires to receive a non-financial re17 ward under this subsection shall submit an applica18 tion to the Secretary at such time, in such manner, 

19 and containing such information as the Secretary 

20 may require. 

21 ‘‘(4) PRIORITY.—Priority in awarding non-fi22 nancial rewards under this subsection shall go to in23 stitutions of higher education that have small or di24 minishing gaps in the completion rates— 


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1 ‘‘(A) between non-low-income or working 

2 class students and low-income or working class 

3 students; and 

4 ‘‘(B) between non-underrepresented minor5 ity students and underrepresented minority stu6 dents. 

7 ‘‘(5) NON-FINANCIAL REWARDS.—Non-financial 

8 rewards under this subsection may include the fol9 lowing: 

10 ‘‘(A) Reporting less frequently and avoid11 ing duplicative reporting requirements. 

12 ‘‘(B) Extra points in Department grant 

13 competitions for which institutions of higher 

14 education are eligible entities. 

15 ‘‘(C) Waiving the multiple disbursement 

16 rule or disbursement delays. 

17 ‘‘(D) Preferable status for experimental 

18 sites. 

19 ‘‘(g) BEST PRACTICES.—The Secretary shall estab20 lish a publicly available electronic database identifying 

21 best practices— 

22 ‘‘(1) of institutions of higher education that 

23 were in the bottom 5 percent of those institutions 

24 ranked under the improving college access program 

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1 pletion program under subsection (c) for academic 

2 year 2017–2018 or for any succeeding academic 

3 year and that have improved their ranking; 

4 ‘‘(2) of eligible institutions of higher education 

5 awarded grants under the completion bonus program 

6 under subsection (e) to support reforms to improve 

7 completion rates; and 

8 ‘‘(3) that the Secretary has determined in car9 rying out this section. 

10 ‘‘(h) ACCOUNTABILITY RULE OF CONSTRUCTION.— 

11 Nothing in this section shall be construed to affect ac12 countability provisions under other sources of law. 

13 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this section 

15 such sums as may be necessary.’’. 

16 (b) REPORT TO CONGRESS.—Not later than 2 years 

17 after the date of enactment of this Act, the Secretary of 

18 Education shall submit a report to Congress that provides 

19 recommendations on ways to expand section 493E of the 

20 Higher Education Act of 1965, as added by subsection 

21 (a), to institutions with predominantly associate’s-degree 

22 seeking students, as well as other institutions of higher 

23 education not covered by such section. 

Æ 


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