II 

114TH CONGRESS 

1ST SESSION S. 1165 

To provide consumer protections for students. 

IN THE SENATE OF THE UNITED STATES 

APRIL 30, 2015 

Mr. MERKLEY (for himself and Mr. DURBIN) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To provide consumer protections for 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 ‘‘Protecting Students 

5 from Worthless Degrees Act’’. 

6 SEC. 2. CONSUMER PROTECTIONS FOR STUDENTS. 

7 (a) DEFINITIONS.—In this section: 

8 (1) FEDERAL FINANCIAL ASSISTANCE PRO9 GRAM.—The term ‘‘Federal financial assistance pro10 gram’’ means a program authorized and funded by 


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1 the Federal Government under any of the following 

2 provisions of law: 

3 (A) Title IV of the Higher Education Act 

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

5 (B) Title I of the Workforce Innovation 

6 and Opportunity Act (29 U.S.C. 3111 et seq.) 

7 and title I of the Workforce Investment Act of 

8 1998 (29 U.S.C. 2801 et seq.). 

9 (C) The Adult Education and Family Lit10 eracy Act (29 U.S.C. 3271 et seq.). 

11 (D) Chapter 30, 31, 32, 33, 34, or 35 of 

12 title 38, United States Code. 

13 (E) Chapter 101, 105, 106A, 1606, 1607, 

14 or 1608 of title 10, United States Code. 

15 (F) Section 1784a, 2005, or 2007 of title 

16 10, United States Code. 

17 (2) INSTITUTION OF HIGHER EDUCATION.—The 

18 term ‘‘institution of higher education’’— 

19 (A) with respect to a program authorized 

20 under paragraph (1)(A), has the meaning given 

21 the term in section 102 of the Higher Edu22 cation Act of 1965 (20 U.S.C. 1002); 

23 (B) with respect to— 

24 (i) a program authorized under title I 

25 of the Workforce Investment Act of 1998 


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1 (29 U.S.C. 2801 et seq.), has the meaning 

2 given the term ‘‘postsecondary educational 

3 institution’’ as defined in section 101 of 

4 the Workforce Investment Act of 1998 (29 

5 U.S.C. 2801), on the day before the date 

6 of enactment of the Workforce Innovation 

7 and Opportunity Act; and 

8 (ii) a program authorized under title I 

9 of the Workforce Innovation and Oppor10 tunity Act (29 U.S.C. 3111 et seq.), has 

11 the meaning given the term in section 3 of 

12 the Workforce Innovation and Opportunity 

13 Act (29 U.S.C. 3102); 

14 (C) with respect to a program authorized 

15 under paragraph (1)(C), has the meaning given 

16 the term ‘‘postsecondary educational institu17 tion’’ as defined in section 203 of the Adult 

18 Education and Family Literacy Act (29 U.S.C. 

19 3272); 

20 (D) with respect to a program authorized 

21 under paragraph (1)(D), has the meaning given 

22 the term ‘‘educational institution’’ under section 

23 3452 of title 38, United States Code; 

24 (E) with respect to a program authorized 

25 under paragraph (1)(E), means an educational 


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1 institution that awards a degree or certificate 

2 and is located in any State; and 

3 (F) with respect to a program authorized 

4 under paragraph (1)(F), means an educational 

5 institution that awards a degree or certificate 

6 and is located in any State. 

7 (3) STATE.— 

8 (A) STATE.—The term ‘‘State’’ includes, 

9 in addition to the several States of the United 

10 States, the Commonwealth of Puerto Rico, the 

11 District of Columbia, Guam, American Samoa, 

12 the United States Virgin Islands, the Common13 wealth of the Northern Mariana Islands, and 

14 the freely associated States. 

15 (B) FREELY ASSOCIATED STATES.—The 

16 term ‘‘freely associated States’’ means the Re17 public of the Marshall Islands, the Federated 

18 States of Micronesia, and the Republic of 

19 Palau. 

20 (b) CONSUMER PROTECTIONS.—Notwithstanding 

21 any other provision of law, an institution of higher edu22 cation is not eligible to participate in a Federal financial 

23 assistance program with respect to any program of post24 secondary education or training, including a degree or cer25 tificate program, that is designed to prepare students for 


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1 entry into a recognized occupation or profession that re2 quires licensing or other established requirements as a 

3 pre-condition for entry into such occupation or profession, 

4 unless, by not later than 1 year after the date of enact5 ment of this Act— 

6 (1) the successful completion of the program 

7 fully qualifies a student, in the Metropolitan Statis8 tical Area and State in which the student resides 

9 (and in any State in which the institution indicates, 

10 through advertising or marketing activities or direct 

11 contact with potential students, that a student will 

12 be prepared to work in the occupation or profession 

13 after successfully completing the program), to— 

14 (A) take any examination required for 

15 entry into the recognized occupation or profes16 sion in the Metropolitan Statistical Area and 

17 State in which the student resides, including 

18 satisfying all Federal, State, or professionally 

19 mandated programmatic and specialized accred20 itation requirements, if any; and 

21 (B) be certified or licensed or meet any 

22 other academically related pre-conditions that 

23 are required for entry into the recognized occu24 pation or profession in the State; and 


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1 (2) the institution offering the program pro2 vides timely placement for all of the academically re3 lated pre-licensure requirements for entry into the 

4 recognized occupation or profession, such as clinical 

5 placements, internships, or apprenticeships. 

6 (c) REGULATIONS ON PRE-ACCREDITED PRO7 GRAMS.—The Secretary of Education shall promulgate 

8 regulations on requirements of an institution of higher 

9 education with respect to any program of the institution 

10 that is in a pre-accredited status, including limitations on, 

11 or requirements of, advertisement of the program to stu12 dents. Such regulations shall be consistent with the provi13 sions of subsection (b). 

14 (d) LOAN DISCHARGE.—The Secretary of Education 

15 shall promulgate regulations that condition eligibility for 

16 an institution of higher education to participate in any 

17 Federal financial assistance program on the institution 

18 signing with each student enrolled in any program of the 

19 institution that is in a pre-accredited status, a loan dis20 charge agreement. 

Æ 


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