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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6951 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 6951

To lower the cost of postsecondary education for students and families.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 11, 2024

Ms. Foxx (for herself, Mr. Owens, Mr. Grothman, Mr. Allen, Mr. Smucker, 
Mrs. McClain, Mrs. Steel, and Mr. Williams of New York) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 A BILL

 
To lower the cost of postsecondary education for students and families.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College Cost 
Reduction Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
                         TITLE I--TRANSPARENCY

                          Part A--Definitions

Sec. 101. Definitions.
               Part B--College Costs and Financial Value

Sec. 111. Financial aid offers.
Sec. 112. College scorecard website.
Sec. 113. Postsecondary student data system.
Sec. 114. Database of student information prohibited.
                   TITLE II--ACCESS AND AFFORDABILITY

                         Part A--Financial Need

Sec. 201. Amount of need; cost of attendance; median cost of college.
                         Part B--Financial Aid

                           subpart 1--grants

Sec. 211. Federal Pell Grant program.
Sec. 212. Campus-based aid programs.
                            subpart 2--loans

Sec. 221. Loan limits.
Sec. 222. Loan repayment.
Sec. 223. Loan rehabilitation.
Sec. 224. Interest capitalization.
Sec. 225. Origination fees.
             TITLE III--ACCOUNTABILITY AND STUDENT SUCCESS

                         Part A--Accountability

                   subpart 1--department of education

Sec. 301. Agreements with institutions.
Sec. 302. Regulatory relief.
Sec. 303. Limitation on authority of Secretary to propose or issue 
                            regulations and executive actions.
Sec. 304. Office of Federal Student Aid.
                         subpart 2--accreditors

Sec. 311. Accrediting agency recognition.
Sec. 312. National Advisory Committee on Institutional Quality and 
                            Integrity (NACIQI).
Sec. 313. Alternative quality assurance experimental site initiative.
                        Part B--Student Success

Sec. 321. Postsecondary student success grants.
Sec. 322. Reverse Transfer Efficiency Act.
Sec. 323. Transparent and fair transfer of credit policies.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.).

                         TITLE I--TRANSPARENCY

                          PART A--DEFINITIONS

SEC. 101. DEFINITIONS.

    (a) Definitions.--Section 103 of the Higher Education Act of 1965 
(20 U.S.C. 1003) is amended by adding at the end the following:
            ``(25) CIP code.--The term `CIP code' means the six-digit 
        taxonomic identification code assigned by an institution of 
        higher education to a specific program of study at the 
        institution, determined by the institution in accordance with 
        the Classification of Instructional Programs published by the 
        National Center for Education Statistics.
            ``(26) Credential level.--
                    ``(A) In general.--The term `credential level' 
                means the level of the degree or other credential 
                awarded by an institution of higher education to 
                students who complete a program of study of the 
                institution. Each degree or other credential awarded by 
                an institution shall be categorized by the institution 
                as either undergraduate credential level or graduate 
                credential level.
                    ``(B) Undergraduate credential.--When used with 
                respect to a credential or credential level, the term 
                `undergraduate credential' includes credentials such as 
                an undergraduate certificate, an associate degree, a 
                bachelor's degree, and a post-baccalaureate 
                certificate.
                    ``(C) Graduate credential.--When used with respect 
                to a credential or credential level, the term `graduate 
                credential' includes credentials such as a master's 
                degree, a doctoral degree, a professional degree, and a 
                postgraduate certificate.
            ``(27) Program of study.--The term `program of study' means 
        an academic program of study offered to students by an 
        institution of higher education that--
                    ``(A) upon completion of the program, results in 
                the award of a credential to a student, including a 
                degree, diploma, or certificate, for one credential 
                level;
                    ``(B) is certified as a program of study in the 
                institution's program participation agreement under 
                section 487; and
                    ``(C) is classified by a combination of--
                            ``(i) a CIP code; and
                            ``(ii) one credential level, determined by 
                        the credential awarded upon completion of the 
                        program.
            ``(28) Program length.--The term `program length' means the 
        minimum amount of time in weeks, months, or years that is 
        specified in the catalog, marketing materials, or other 
        official publications of an institution of higher education for 
        a full-time student to complete the requirements for a specific 
        program of study and to obtain the degree or credential awarded 
        by such program.
            ``(29) Time to credential.--The term `time to credential' 
        means, with respect to a student, the actual amount of time in 
        weeks, months, or years it takes the student to complete the 
        requirements for a specific program of study and to obtain the 
        degree or credential awarded by such program.
            ``(30) Value-added earnings.--
                    ``(A) Calculation.--With respect to a student who 
                received Federal financial aid under title IV and who 
                completed a program of study offered by an institution 
                of higher education, the term `value-added earnings' 
                means--
                            ``(i) the annual earnings of such student 
                        measured during the applicable earnings 
                        measurement period for such program (as 
                        determined under subparagraph (C)); minus
                            ``(ii) in the case of a student who 
                        completed a program of study that awards--
                                    ``(I) an undergraduate credential, 
                                150 percent of the poverty line 
                                applicable to a single individual as 
                                determined under section 673(2) of the 
                                Community Services Block Grant Act (42 
                                U.S.C. 9902(2)) for such year; or
                                    ``(II) a graduate credential, 300 
                                percent of the poverty line applicable 
                                to a single individual as determined 
                                under section 673(2) of the Community 
                                Services Block Grant Act (42 U.S.C. 
                                9902(2)) for such year.
                    ``(B) Geographic adjustment.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Secretary shall use the 
                        geographic location of the institution at which 
                        a student completed a program of study to 
                        adjust the value-added earnings of the student 
                        calculated under subclause (A) by dividing--
                                    ``(I) the difference between 
                                subclauses (I) and (II) of such 
                                subparagraph; by
                                    ``(II) the most recent regional 
                                price parity index of the Bureau of 
                                Economics Analysis for the State or, as 
                                applicable, metropolitan area in which 
                                such institution is located.
                            ``(ii) Exception.--The value-added earnings 
                        of a student calculated under subparagraph (A) 
                        shall not be adjusted based on geographic 
                        location in accordance with clause (i) if such 
                        student attended principally through distance 
                        education.
                    ``(C) Earnings measurement period.--
                            ``(i) In general.--For the purpose of 
                        calculating the value-added earnings of a 
                        student, except as provided in clause (ii), the 
                        annual earnings of a student shall be 
                        measured--
                                    ``(I) in the case of a program of 
                                study that awards an undergraduate 
                                certificate, post baccalaureate 
                                certificate, or graduate certificate, 
                                one year after the student completes 
                                such program;
                                    ``(II) in the case of a program of 
                                study that awards an associate's degree 
                                or master's degree, 2 years after the 
                                student completes such program; and
                                    ``(III) in the case of a program of 
                                study that awards a bachelor's degree, 
                                doctoral degree, or professional 
                                degree, 4 years after the student 
                                completes such program.
                            ``(ii) Exception.--The Secretary may, as 
                        the Secretary determines appropriate based on 
                        the characteristics of a program of study, 
                        extend an earnings measurement period described 
                        in clause (i) for a program of study that--
                                    ``(I) requires completion of an 
                                additional educational program after 
                                completion of the program of study in 
                                order to obtain a licensure associated 
                                with the credential awarded for such 
                                program of study; and
                                    ``(II) when combined with the 
                                program length of such additional 
                                educational program for licensure, has 
                                a total program length that exceeds the 
                                relevant earnings measurement period 
                                prescribed for such program of study 
                                under clause (i),
                        except that in no case shall the annual 
                        earnings of a student be measured more than 5 
                        years after the student completes a program of 
                        study.''.

               PART B--COLLEGE COSTS AND FINANCIAL VALUE

SEC. 111. FINANCIAL AID OFFERS.

    (a) Institution Financial Aid Offer.--Section 484 of the Higher 
Education Opportunity Act (20 U.S.C. 1092 note) is amended to read as 
follows:

``SEC. 484. INSTITUTION FINANCIAL AID OFFER FORM.

    ``(a) Standard Form and Terminology.--The Secretary of Education, 
in consultation with the heads of relevant Federal agencies, shall 
develop standard terminology and a standard form for financial aid 
offers based on recommendations from representatives of students, 
veterans, servicemembers, families of students, institutions of higher 
education (including community colleges, for-profit institutions, four-
year public institutions, and four-year private nonprofit 
institutions), financial aid experts, secondary school and 
postsecondary counselors, college access professionals, nonprofit 
organizations, and consumer groups.
    ``(b) Key Required Contents for Aid Offer.--The standard form 
developed pursuant to subsection (a) shall be titled `Financial Aid 
Offer' and shall include the following items in a consumer-friendly 
manner that is simple and understandable, with costs listed first, 
followed by grants and scholarships, clearly separated from each other 
with separate headings:
            ``(1) Cost information.--
                    ``(A) In general.--Information on the student's 
                estimated cost of attendance, including the following:
                            ``(i) Direct costs.--The total cost of all 
                        items described in section 472 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1087ll) that 
                        are billed to the student by the institution or 
                        otherwise required by the institution for 
                        enrollment, including such total cost 
                        disaggregated by the cost of each such item, 
                        including, as determined under such section--
                                    ``(I) tuition and fees (and other 
                                required expenses); and
                                    ``(II) housing and food for a 
                                student electing institutionally owned 
                                or operated food services or 
                                institutionally owned or operated 
                                housing.
                            ``(ii) Indirect costs.--The total cost 
                        (including such total cost disaggregated by the 
                        cost of each item) as determined under section 
                        472 of the Higher Education Act of 1965 (20 
                        U.S.C. 1087ll), of--
                                    ``(I) housing and food for a 
                                student not electing institutionally 
                                owned or operated food services and not 
                                living in institutionally owned or 
                                operated housing;
                                    ``(II) books, school supplies, 
                                equipment, course materials, and rental 
                                or purchase of a personal computer;
                                    ``(III) transportation;
                                    ``(IV) any other item described in 
                                such section and not described in 
                                clause (i) determined to be necessary 
                                by the institution.
                    ``(B) The academic period covered by the financial 
                aid offer, and an explanation that the amount of 
                financial aid offered may change--
                            ``(i) for academic periods not covered by 
                        the aid offer; or
                            ``(ii) by program.
                    ``(C) An indication of whether cost and aid 
                estimates are based on full-time or part-time 
                enrollment.
                    ``(D) An indication, as applicable, about whether 
                any costs described in subparagraph (A)(i) which are 
                subject to change are--
                            ``(i) estimated based on the previous year; 
                        or
                            ``(ii) set for the academic period 
                        indicated in accordance with subparagraph (B).
            ``(2) Grants and scholarships.--The aggregate amount of 
        grants and scholarships, differentiated by source, that the 
        student does not have to repay, such as grant aid offered under 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
        seq.), grant aid offered through other Federal programs, grant 
        aid offered by the institution, grant aid offered by the State, 
        and, if known, grant aid or scholarship from an outside source 
        to the student for such academic period, including a disclosure 
        that the grants and scholarships do not have to be repaid, 
        except that institutions shall be authorized to list individual 
        grants and scholarships by name at the discretion of the 
        institution.
            ``(3) Net price.--
                    ``(A) In general.--The net price that the student, 
                is estimated to have to pay for the student to attend 
                the institution for such academic period, including the 
                following:
                            ``(i) Minimum amount covered by student for 
                        enrollment.--The net price of tuition and fees 
                        (and other required expenses), which is equal 
                        to--
                                    ``(I) the sum of the costs 
                                described in paragraph (1)(A) that are 
                                required for students (as determined 
                                under paragraph (5)(B)) for the period 
                                indicated in paragraph (1)(B); minus
                                    ``(II) the total amount of grant 
                                and scholarship aid described in 
                                paragraph (2) that is included in the 
                                financial aid offer and available to 
                                the student for the costs described in 
                                subclause (I).
                            ``(ii) Estimated annual net price of 
                        attendance.--The estimated net price of 
                        attendance, which is equal to--
                                    ``(I) the cost of attendance for 
                                the student for the period indicated in 
                                paragraph (1)(B); minus
                                    ``(II) the total amount of grant 
                                and scholarship aid described in 
                                paragraph (2).
                    ``(B) Disclosure.--A disclosure that the net price 
                is based on an estimate of the total cost of attendance 
                for the year and not necessarily equivalent to the 
                amount the student will owe directly to the 
                institution.
            ``(4) Loans.--
                    ``(A) Information on any education loan offered 
                through any Federal or State program (including any 
                loan under part D or part E of title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1087a et seq.; 20 
                U.S.C. 1087aa et seq.)) that the institution offers for 
                the student for the academic period covered by the 
                offer, which shall be made--
                            ``(i) with clear use of the word `loan' to 
                        describe the recommended loan amounts; and
                            ``(ii) with clear labeling of subsidized 
                        and unsubsidized loans.
                    ``(B) If applicable, a disclosure that such loans 
                have to be repaid with interest.
                    ``(C) Information on any other loan that the 
                student or parent has applied for and been approved 
                for, regardless of the source.
            ``(5) Student employment.--Information on work-study 
        employment opportunities (including work-study programs under 
        part C of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1087-51 et seq.), institutional work-study programs, or 
        State work-study programs), including--
                    ``(A) the maximum annual amount the student may 
                earn through the program; and
                    ``(B) a disclosure that any amounts received 
                pursuant to such a program may be--
                            ``(i) subject to the availability of 
                        qualified employment opportunities upon 
                        students enrollment; and
                            ``(ii) disbursed over time as earned by the 
                        student.
            ``(6) Process for accepting, adjusting, or declining aid 
        and next steps.--
                    ``(A) The deadlines and a summary of the process 
                (including the next steps) for--
                            ``(i) accepting the financial aid offered;
                            ``(ii) adjusting the amount of aid offered; 
                        and
                            ``(iii) declining the aid offered.
                    ``(B) Information on when and how costs described 
                in paragraph (1)(A)(i) must be paid, including whether 
                such costs are required or optional for the student.
                    ``(C) A disclosure that verification of information 
                provided on the Free Application for Federal Student 
                Aid may require the student to submit further 
                documentation.
                    ``(D) Information about where a student or the 
                student's family can seek additional information 
                regarding the financial aid offered, including contact 
                information for the institution's financial aid office 
                and the Department of Education's website on financial 
                aid.
                    ``(E) Information about where a student or a 
                student's family can seek additional information on 
                college costs and student outcomes, including a link to 
                the Department of Education's College Scorecard website 
                (or successor website).
            ``(7) Net price calculator.--A link to the universal net 
        price calculator described in section 132(c)(4).
            ``(8) Additional information.--Any other information the 
        Secretary of Education, in consultation with the heads of 
        relevant Federal agencies, including the Secretary of the 
        Treasury and the Director of the Bureau of Consumer Financial 
        Protection, determines necessary, based on the results and 
        input of the consumer testing under subsection (h)(2), and 
        limited only to effectively communicating college costs and 
        financial aid eligibility to students and parents.
    ``(c) Other Required Contents for Aid Offer.--The standard form 
developed under subsection (a) shall include, in addition to the 
information described in subsection (b), the following information in a 
concise format determined by the Secretary of Education, in 
consultation with the heads of relevant Federal agencies and the 
individuals and entities described in subsection (a):
            ``(1) Additional options and potential resources for paying 
        for the amount listed in subsection (b)(3), such as tuition 
        payment plans.
            ``(2) The following information relating to private student 
        loans:
                    ``(A) A disclosure that private education loans may 
                be available to cover remaining need, except that the 
                institution may not include private education loans 
                other than under the conditions described in subsection 
                (b)(4)(C) and must include a disclosure that such 
                loans--
                            ``(i) are subject to an additional 
                        application process; and
                            ``(ii) must be repaid by the borrower or 
                        their co-signer, and may not be eligible for 
                        the benefits available for loans made under 
                        title IV.
                    ``(B) A statement that students considering 
                borrowing to cover the cost of attendance should 
                consider available Federal student loans prior to 
                applying for private education loans, including an 
                explanation that Federal student loans offer generally 
                more favorable terms and beneficial repayment options 
                than private loans.
    ``(d) Additional Formatting Requirements for Financial Aid Offer.--
The financial aid offer shall meet the following requirements:
            ``(1) Clearly distinguish between the aid offered under 
        paragraphs (2) and (4) of subsection (b), by including a 
        subtotal for the aid offered in each of such paragraphs and by 
        refraining from commingling the different types of aid 
        described in such paragraphs.
            ``(2) Use standard terminology and definitions, as 
        described in subsection (f)(1), and use plain language where 
        possible.
            ``(3) Use the standard aid offer described in subsection 
        (f)(2).
    ``(e) Supplemental Content and Disclosures To Be Provided.--In 
addition to the standard form described under subsection (a), 
institutions shall provide, in supplemental documents or through easily 
accessible weblinks to the institution's portal or a website, the 
following:
            ``(1) The renewability requirements and conditions under 
        which the student can expect to receive similar amounts of such 
        financial aid for each academic period the student is enrolled 
        at the institution.
            ``(2) Whether the aid offer may change if aid from outside 
        sources is applied after the student receives the initial aid 
        offer, and, if applicable, how that aid will change.
            ``(3) If loans under part D or part E of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 20 
        U.S.C. 1087aa et seq.) or other education loans offered through 
        Federal programs are included--
                    ``(A) a disclosure that the interest rates and fees 
                on such loans are set annually and affect total cost 
                over time, and a link to any website that includes 
                current information on interest rates and fees; and
                    ``(B) if an institution's recommended Federal 
                student loan aid offered in subsection (b)(4) is less 
                than the Federal maximum available to the student, the 
                institution shall provide additional information on 
                Federal student loans including the types and amounts 
                for which the student is eligible and the process for 
                requesting higher loan amounts if offered loan amounts 
                were included.
            ``(4) If the institution opts not to disclose other items 
        described in subsection (b)(1)(A)(ii)(V) as part of the aid 
        offer, a list of such other items and the allowance amount for 
        each such item.
    ``(f) Standard Information Established by Secretary.--
            ``(1) Standard terminology.--Not later than 3 months after 
        the date of enactment of the College Cost Reduction Act, the 
        Secretary of Education, in consultation with the heads of 
        relevant Federal agencies, and the individuals and entities 
        described in subsection (a) shall establish standard 
        terminology and definitions for the terms described in 
        subsection (b).
            ``(2) Standard form.--
                    ``(A) In general.--The Secretary of Education shall 
                develop multiple draft financial aid offers for 
                consumer testing, carry out consumer testing for such 
                forms, and establish a finalized standard financial aid 
                offer in accordance with--
                            ``(i) the process established under 
                        subsection (h); and
                            ``(ii) the requirements of this section.
                    ``(B) Separate financial aid offers.--The Secretary 
                shall develop separate financial aid offers for--
                            ``(i) undergraduate students; and
                            ``(ii) graduate students.
    ``(g) Additional Information; Removal of Information.--Nothing in 
this section shall preclude an institution from--
            ``(1) supplementing the financial aid offer with additional 
        information, provided that such information utilizes the same 
        standard terminology identified in subsection (f)(1) and does 
        not misrepresent costs, financial aid offered, or net price; or
            ``(2) deleting a required item or disclosure if--
                    ``(A) the student is ineligible for such aid;
                    ``(B) the institution does not participate in the 
                aid program or type;
                    ``(C) the aid offer does not include the aid 
                program or type; or
                    ``(D) a cost of attendance item is not applicable 
                to the student.
    ``(h) Development of Financial Aid Offer.--
            ``(1) Draft form.--Not later than 9 months after the date 
        of enactment of the College Cost Reduction Act, the Secretary 
        of Education, in consultation with the heads of relevant 
        Federal agencies and the individuals and entities described in 
        subsection (a) shall design and produce multiple draft 
        financial aid offers for consumer testing with postsecondary 
        students or prospective students. In developing that form, the 
        Secretary shall ensure that--
                    ``(A) the headings described in paragraphs (1) 
                through (4) of subsection (b) are in the same font, 
                appears in the same order, and are displayed 
                prominently on the financial aid offer, such that none 
                of that information is inappropriately omitted or 
                deemphasized;
                    ``(B) the other information required under 
                subsection (b) appears in a standard format and design 
                on the financial aid offer; and
                    ``(C) the institution may include a logo or brand 
                alongside the title of the financial aid offer.
            ``(2) Consumer testing.--
                    ``(A) In general.--Not later than 9 months after 
                the date of enactment of the College Cost Reduction 
                Act, the Secretary of Education, in consultation with 
                the heads of relevant Federal agencies, shall establish 
                a process to submit the financial aid offer drafts 
                developed under paragraph (1) for consumer testing 
                among representatives of students (including low-income 
                students, first generation college students, adult 
                students, veterans, servicemembers, and prospective 
                students), students' families (including low-income 
                families, families with first generation college 
                students, and families with prospective students), 
                institutions of higher education, secondary school and 
                postsecondary counselors, and nonprofit consumer 
                groups.
                    ``(B) Length of consumer testing.--The Secretary of 
                Education shall ensure that the consumer testing under 
                this paragraph lasts not longer than 8 months after the 
                process for consumer testing is developed under 
                subparagraph (A).
            ``(3) Final form.--
                    ``(A) In general.--The results of consumer testing 
                under paragraph (2) shall be used in the development of 
                the finalized standard financial aid offer required 
                under subsection (f)(2).
                    ``(B) Reporting requirement.--Not later than 3 
                months after the date on which the consumer testing 
                under paragraph (2) concludes, the Secretary of 
                Education shall submit to Congress, and publish on its 
                website--
                            ``(i) the final standard financial aid 
                        offer; and
                            ``(ii) a report detailing the results of 
                        such testing, including whether the Secretary 
                        of Education added, modified, or moved any 
                        additional items to the standard financial aid 
                        offer pursuant to subsection (b)(6).
            ``(4) Authority to modify.--The Secretary of Education may 
        modify or remove the definitions, terms, formatting, and design 
        of the financial aid offer based on the results of consumer 
        testing required under this subsection and before finalizing 
        the form, or in subsequent consumer testing. The Secretary may 
        also recommend additional changes to Congress.
    ``(i) Cost of Attendance Defined.--In this section, the term `cost 
of attendance' has the meaning given such term in section 472 of the 
Higher Education Act of 1965 (20 U.S.C. 1087ll).''.
    (b) Use of Mandatory Financial Aid Offer and Terms.--Part B of 
title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is 
amended by adding at the end the following:

``SEC. 124. USE OF MANDATORY FINANCIAL AID OFFER AND TERMS.

    ``(a) In General.--Notwithstanding any other provision of law, each 
institution of higher education that receives Federal financial 
assistance under this Act shall--
            ``(1) use the financial aid offer developed under section 
        484 of the Higher Education Opportunity Act (20 U.S.C. 1092 
        note) in providing paper, mobile-optimized offers, or other 
        electronic offers to all students who apply for aid and are 
        accepted at the institution; and
            ``(2) use the standard terminology and definitions 
        developed by the Secretary of Education under subsection (f)(1) 
        of that section for all communications from the institution 
        related to financial aid offers.
    ``(b) Effective Date.--The requirements under this section shall 
take effect on the first date on which the Secretary releases the Free 
Application for Federal Student Aid for the applicable award year 
associated with that application, if such date occurs not less than 1 
year after the Secretary of Education finalizes the standard 
terminology and form developed in accordance with section 484 of the 
Higher Education Opportunity Act (20 U.S.C. 1092 note).
    ``(c) Administrative Procedures.--Notwithstanding any other 
provision of law, the Secretary shall not have the authority to 
prescribe regulations to carry out this section.''.

SEC. 112. COLLEGE SCORECARD WEBSITE.

    (a) College Scorecard Website.--
            (1) Definitions; conforming amendments.--Section 132 of the 
        Higher Education Act of 1965 (20 U.S.C. 1015a(a)) is amended--
                    (A) by amending subsection (a) to read as follows:
    ``(a) Definitions.--In this section:
            ``(1) College scorecard website.--The term `College 
        Scorecard website' means the College Scorecard website required 
        under subsection (c) and includes any successor website.
            ``(2) Cost of attendance.--The term `cost of attendance' 
        has the meaning given such term in section 472.
            ``(3) Total net price required for completion.--The term 
        `total net price required for completion' means, with respect 
        to the period of completion of a program of study--
                    ``(A) the sum of the required costs described in 
                section 484(b)(3)(A)(i)(I) charged to a student for 
                such period of completion; minus
                    ``(B) the total amount of grant and scholarship aid 
                described in paragraph (2) of section 484(b) that is 
                available to the student for the costs described in 
                subparagraph (A) for completion of a program of 
                study.'';
                    (B) by striking subsections (b) through (g); and
                    (C) by redesignating subsection (h) as subsection 
                (b).
            (2) Scorecard authorized.--Section 132 of the Higher 
        Education Act of 1965 (20 U.S.C. 1015a) is further amended--
                    (A) by striking subsection (i); and
                    (B) by inserting after subsection (b) the 
                following:
    ``(c) Consumer Information.--
            ``(1) Availability of information for title iv institutions 
        and programs.--Not later than 18 months after the date of the 
        enactment of the College Cost Reduction Act, the Secretary 
        shall make publicly available on the College Scorecard website 
        the following aggregated information with respect to each 
        institution of higher education and each program of study at 
        such institution, as applicable, that participates in a program 
        under title IV:
                    ``(A) A link to the website of the institution.
                    ``(B) A link to the net price calculator for such 
                institution.
                    ``(C) A link to the website of the institution 
                containing campus safety data with respect to such 
                institution.
                    ``(D) The geographic location of the institution.
                    ``(E) Information on the type of institution, 
                including sector, size, predominant and highest 
                credential awarded, research intensity, programs of 
                study offered, and other characteristics of the 
                institution.
                    ``(F) Information on student enrollment, including 
                the number and percentage of students enrolled full-
                time, less than full-time, and enrolled in distance 
                education.
                    ``(G) Information on student progression and 
                completion, including time to credential and rates of 
                withdrawal, retention, transfer, or completion.
                    ``(H) Information on college costs and financial 
                aid, including average, median, minimum, and maximum 
                values of--
                            ``(i) the cost of attendance, including 
                        such cost disaggregated by the costs described 
                        in paragraphs (1) through (14) of section 
                        472(a);
                            ``(ii) the grants and scholarships received 
                        by students at the institution and the number 
                        and percentage of such students receiving such 
                        grants and scholarships, disaggregated by 
                        source and whether such aid is need-based, 
                        merit-based, an athletic scholarship, or other 
                        type of grant or scholarship; and
                            ``(iii) the total net price required for 
                        completion for students who received Federal 
                        financial assistance described in paragraph 
                        (2)(I).
                    ``(I) Information on student debt and repayment, 
                including--
                            ``(i) the average, median, minimum, and 
                        maximum amounts borrowed by students under 
                        title IV; and
                            ``(ii) information with respect to 
                        repayment of loans made under title IV, 
                        including borrower-based repayment rates, 
                        dollar-based repayment rates, and time spent in 
                        repayment.
                    ``(J) Information on the earnings of students who 
                received Federal financial assistance described in 
                paragraph (2)(I), including the average, median, 
                minimum, and maximum values of--
                            ``(i) with respect to students who complete 
                        a program of study in an award year--
                                    ``(I) the annual earnings of such 
                                students; and
                                    ``(II) the value-added earnings of 
                                such students; and
                            ``(ii) with respect to students who do not 
                        complete a program of study in an award year, 
                        the annual earnings of such students.
            ``(2) Disaggregated information.--The Secretary shall 
        ensure the information described in paragraph (1) is 
        disaggregated, as applicable, by the following student 
        characteristics:
                    ``(A) Financial circumstances including--
                            ``(i) household income categories, as 
                        determined by students' adjusted gross income, 
                        family size, and poverty line (as defined in 
                        section 401(a)); and
                            ``(ii) student aid index categories, as 
                        determined by the Secretary.
                    ``(B) Sex.
                    ``(C) Race and ethnicity.
                    ``(D) Classification as a student with a 
                disability.
                    ``(E) Enrollment status.
                    ``(F) Residency status.
                    ``(G) Status as an international student.
                    ``(H) Status as a recipient of Federal financial 
                assistance, including--
                            ``(i) a Pell grant;
                            ``(ii) a loan made under title IV; and
                            ``(iii) veterans' education benefits (as 
                        defined in section 480(c)).
                    ``(J) Status as a participant in a program 
                described in section 116(b)(3)(A)(ii) of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 
                3131(b)(3)(A)(ii)).
            ``(3) Institutional and program comparison.--The Secretary 
        shall include on the College Scorecard website a method for 
        users to easily compare institutions and programs, including in 
        a manner that allows for such comparison based on--
                    ``(A) the institutional and program information 
                described in paragraph (1); and
                    ``(B) the student characteristics described in 
                paragraph (2).
            ``(4) Universal net price calculator.--The Secretary shall 
        include on the College Scorecard website a universal net price 
        calculator that enables users to answer questions and receive 
        personalized pricing information for each institution of higher 
        education and program of study offered by such institution.
            ``(5) Updates.--
                    ``(A) Data.--The Secretary shall update the College 
                Scorecard website not less than annually.
                    ``(B) Technology and format.--The Secretary shall 
                regularly assess the format and technology of the 
                College Scorecard website and make any changes or 
                updates that the Secretary considers appropriate.
            ``(6) Consumer testing.--In developing and maintaining the 
        College Scorecard website, the Secretary, in consultation with 
        appropriate departments and agencies of the Federal Government, 
        shall--
                    ``(A) not later than 6 months after the date of the 
                enactment of the College Cost Reduction Act, and not 
                less than once every 3 years thereafter, consumer 
                testing with appropriate persons, including current and 
                prospective college students, family members of such 
                students, institutions of higher education, and 
                experts, to ensure that the College Scorecard website 
                is usable and easily understandable and provides useful 
                and relevant information to students and families; and
                    ``(B) prominently display on such website in 
                simple, understandable, and unbiased terms for the most 
                recent academic year for which satisfactory data is 
                available, the information described in paragraphs (1) 
                and (2) that was determined to be useful and relevant 
                to students and families based on the consumer testing 
                described in subparagraph (A) for each institution and 
                program of study (as applicable).
            ``(7) Provision of appropriate links to prospective 
        students after submission of fafsa.--The Secretary shall 
        provide to each student who submits a Free Application for 
        Federal Student Aid described in section 483 a link to the 
        webpage of the College Scorecard website that contains the 
        information required under paragraph (1) for each institution 
        of higher education such student includes on such application.
            ``(8) Interagency coordination.--The Secretary, in 
        consultation with each appropriate head of a department or 
        agency of the Federal Government, shall ensure, to the greatest 
        extent practicable, that any information related to higher 
        education that is published by such department or agency is 
        consistent with the information published on the College 
        Scorecard website.
            ``(9) Data collection and duplicated reporting.--
        Notwithstanding any other provision of this section, to the 
        extent that another provision of this section requires the same 
        reporting or collection of data that is required under this 
        Act, an institution of higher education, or the Secretary or 
        Commissioner, shall use the reporting or data required under 
        this subsection to satisfy both requirements.
            ``(10) Data privacy.--
                    ``(A) In general.--The Secretary shall ensure any 
                information made available under this section is made 
                available in accordance with the privacy laws described 
                in section 132(f)(1)(C)(iv).
                    ``(B) Small institutions and program of study.--For 
                purposes of publishing the information described in 
                paragraphs (1) and (2), for any year for which the 
                number of students is determined by the Secretary to be 
                of insufficient size to maintain the privacy of student 
                data, the Secretary shall--
                            ``(i) aggregate up to 4 years of additional 
                        data for such program of study to obtain data 
                        for a sufficient number of students to maintain 
                        student privacy;
                            ``(ii) in the case of a program of study, 
                        if the method described in clause (i) is 
                        insufficient to maintain student privacy, 
                        aggregate data for students who completed or 
                        who were enrolled in, as applicable, similar 
                        program of study of the institution to obtain 
                        data for a sufficient number of students to 
                        maintain student privacy; and
                            ``(iii) in the case of a program of study, 
                        if the methods described in clauses (i) and 
                        (ii) are insufficient to maintain student 
                        privacy, or additional data described in such 
                        clauses is not available or can not be 
                        aggregated, aggregate data with respect to all 
                        students who completed or were enrolled in, as 
                        applicable, any program of study of the 
                        institution of the same credential level, in 
                        lieu of data specific to students in such 
                        program of study.''.
    (b) Conforming Amendments.--The Higher Education Act of 1965 (20 
U.S.C. 1001 et seq.), as amended by subsection (a) of this section, is 
further amended by striking ``College Navigator'' each place it appears 
and inserting ``College Scorecard''.
    (c) References.--Any reference in any law (other than the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.)), regulation, document, 
record, or other paper of the United States to the College Navigator 
website shall be considered to be a reference to the College Scorecard 
website.

SEC. 113. POSTSECONDARY STUDENT DATA SYSTEM.

    Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a) 
is further amended--
            (1) by redesignating subsections (j) and (k) as subsections 
        (d) and (e), respectively;
            (2) by redesignating subsection (l) as subsection (g); and
            (3) by inserting after subsection (e), as so redesignated, 
        the following:
    ``(f) Postsecondary Student Data System.--
            ``(1) In general.--
                    ``(A) Establishment of system.--Not later than 3 
                years after the date of enactment of the College Cost 
                Reduction Act, the Commissioner of the National Center 
                for Education Statistics (referred to in this 
                subsection as the `Commissioner') in consultation with 
                the Director of the Institute of Education Sciences 
                (referred to as `the Director') shall develop and 
                maintain a secure and privacy-protected postsecondary 
                student-level data system in order to--
                            ``(i) accurately evaluate student 
                        enrollment patterns, progression, completion, 
                        and postcollegiate outcomes, and higher 
                        education costs and financial aid;
                            ``(ii) assist with transparency, 
                        institutional improvement, and analysis of 
                        Federal aid programs;
                            ``(iii) provide accurate, complete, and 
                        customizable information for students and 
                        families making decisions about postsecondary 
                        education; and
                            ``(iv) reduce the reporting burden on 
                        institutions of higher education in accordance 
                        with section 111 of the College Cost Reduction 
                        Act.
                    ``(B) Avoiding duplicate reporting.--
                Notwithstanding any other provision of this section, to 
                the extent that another provision of this section 
                requires the same reporting or collection of data that 
                is required under this subsection, an institution of 
                higher education, or the Secretary or Commissioner, 
                shall use the reporting or data required for the 
                postsecondary student data system under this subsection 
                to satisfy both requirements.
                    ``(C) Development process.--In developing the 
                postsecondary student data system described in this 
                subsection, the Commissioner, in consultation with the 
                Director, shall--
                            ``(i) focus on the needs of--
                                    ``(I) users of the data system; and
                                    ``(II) entities, including 
                                institutions of higher education, 
                                reporting to the data system;
                            ``(ii) take into consideration, to the 
                        extent practicable--
                                    ``(I) the guidelines outlined in--
                                            ``(aa) the `United States 
                                        Web Design Standards' 
                                        maintained by the General 
                                        Services Administration; and
                                            ``(bb) the `Digital 
                                        Services Playbook' and `TechFAR 
                                        Handbook for Procuring Digital 
                                        Services Using Agile Processes' 
                                        of the United States Digital 
                                        Service; and
                                    ``(II) the relevant successor 
                                documents or recommendations of such 
                                guidelines;
                            ``(iii) use modern, relevant privacy- and 
                        security-enhancing technology, and enhance and 
                        update the data system as necessary to carry 
                        out the purpose of this subsection;
                            ``(iv) ensure data privacy and security is 
                        consistent with any relevant Federal law 
                        relating to privacy or data security, 
                        including--
                                    ``(I) the requirements of 
                                subchapter II of chapter 35 of title 
                                44, United States Code, specifying 
                                security categorization under the 
                                Federal Information Processing 
                                Standards or any relevant successor of 
                                such standards;
                                    ``(II) security requirements that 
                                are consistent with the Federal agency 
                                responsibilities in section 3554 of 
                                title 44, United States Code, or any 
                                relevant successor of such 
                                responsibilities; and
                                    ``(III) security requirements, 
                                guidelines, and controls consistent 
                                with cybersecurity standards and best 
                                practices developed by the National 
                                Institute of Standards and Technology, 
                                including frameworks, consistent with 
                                section 2(c) of the National Institute 
                                of Standards and Technology Act (15 
                                U.S.C. 272(c)), or any relevant 
                                successor of such frameworks;
                            ``(v) follow Federal data minimization 
                        practices to ensure only the minimum amount of 
                        data is collected to meet the system's goals, 
                        in accordance with Federal data minimization 
                        standards and guidelines developed by the 
                        National Institute of Standards and Technology; 
                        and
                            ``(vi) provide notice to students outlining 
                        the data included in the system and how the 
                        data are used.
                    ``(D) Limitation.--The data system developed under 
                this subsection may only include data with respect to--
                            ``(i) students receiving--
                                    ``(I) Federal financial assistance 
                                under title IV of this Act; or
                                    ``(II) veteran's education 
                                benefits, as defined in section 480(c); 
                                and
                            ``(ii) participants in a program described 
                        in section 116(b)(3)(A)(ii) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3131(b)(3)(A)(ii)).
            ``(2) Data elements.--
                    ``(A) In general.--Not later than 3 years after the 
                date of enactment of the College Cost Reduction Act, 
                the Commissioner, in consultation with the 
                Postsecondary Student Data System Advisory Committee 
                and the Director, established under subparagraph (B), 
                shall determine--
                            ``(i) the data elements to be included in 
                        the postsecondary student data system, in 
                        accordance with subparagraphs (C) and (D); and
                            ``(ii) how to include the data elements 
                        required under subparagraph (C), and any 
                        additional data elements selected under 
                        subparagraph (D), in the postsecondary student 
                        data system.
                    ``(B) Postsecondary student data system advisory 
                committee.--
                            ``(i) Establishment.--Not later than 1 year 
                        after the date of enactment of the College Cost 
                        Reduction Act, the Commissioner, in 
                        consultation with the Director, shall establish 
                        a Postsecondary Student Data System Advisory 
                        Committee (referred to in this subsection as 
                        the `Advisory Committee'), whose members shall 
                        include--
                                    ``(I) the Chief Privacy Officer of 
                                the Department or an official of the 
                                Department delegated the duties of 
                                overseeing data privacy at the 
                                Department;
                                    ``(II) the Chief Security Officer 
                                of the Department or an official of the 
                                Department delegated the duties of 
                                overseeing data security at the 
                                Department;
                                    ``(III) representatives of diverse 
                                institutions of higher education, which 
                                shall include equal representation 
                                between 2-year and 4-year institutions 
                                of higher education, and from public, 
                                nonprofit, and proprietary institutions 
                                of higher education, including 
                                minority-serving institutions;
                                    ``(IV) representatives from State 
                                higher education agencies, entities, 
                                bodies, or boards;
                                    ``(V) representatives of 
                                postsecondary students;
                                    ``(VI) representatives from 
                                relevant Federal agencies;
                                    ``(VII) individuals with expertise 
                                in data privacy and security; and
                                    ``(VIII) other stakeholders 
                                (including individuals with consumer 
                                protection and postsecondary education 
                                research).
                            ``(ii) Requirements.--The Commissioner, 
                        working with the Director, shall ensure that 
                        the Advisory Committee--
                                    ``(I) adheres to all requirements 
                                under chapter 10 of title 5, United 
                                States Code (commonly known as the 
                                `Federal Advisory Committee Act');
                                    ``(II) establishes operating and 
                                meeting procedures and guidelines 
                                necessary to execute its advisory 
                                duties; and
                                    ``(III) is provided with 
                                appropriate staffing and resources to 
                                execute its advisory duties.
                    ``(C) Required data elements.--The data elements in 
                the postsecondary student data system shall include the 
                following:
                            ``(i) Student-level data elements necessary 
                        to calculate the information within the surveys 
                        designated by the Commissioner as `student-
                        related surveys' in the Integrated 
                        Postsecondary Education Data System (IPEDS), as 
                        such surveys are in effect on the day before 
                        the date of enactment of the College Cost 
                        Reduction Act, except that in the case that 
                        collection of such elements would conflict with 
                        the prohibition under subparagraph (F), such 
                        elements in conflict with such prohibition 
                        shall be included in the aggregate instead of 
                        at the student level.
                            ``(ii) Student-level data elements reported 
                        by institutions in accordance with section 
                        668.408 of title 34, Code of Federal 
                        Regulations, as in effect on July 1, 2024.
                            ``(iii) Student-level data elements 
                        necessary to allow for reporting student 
                        enrollment, persistence, progression (including 
                        credit accumulation) retention, transfer, 
                        completion, and time and credits to credential 
                        measures for all credential levels separately 
                        (including certificate, associate, 
                        baccalaureate, and advanced degree levels), 
                        within and across institutions of higher 
                        education (including across all categories of 
                        institution level, control, and predominant 
                        degree awarded). The data elements shall allow 
                        for reporting about all such data disaggregated 
                        by the following categories:
                                    ``(I) Enrollment status as a first-
                                time student, recent transfer student, 
                                or other nonfirst-time student.
                                    ``(II) Attendance intensity, 
                                whether full-time or part-time.
                                    ``(III) Credential-seeking status, 
                                by credential level (including 
                                noncredit-seeking and noncredit 
                                credentials).
                                    ``(IV) Race or ethnicity, in a 
                                manner that captures all the racial 
                                groups specified in the most recent 
                                American Community Survey of the Bureau 
                                of the Census.
                                    ``(V) Age intervals.
                                    ``(VI) Sex.
                                    ``(VII) Status as a first 
                                generation college student (as defined 
                                in section 402A(h)).
                                    ``(VIII) Economic status.
                                    ``(IX) Measures related to college 
                                readiness, including participation in 
                                postsecondary remedial coursework or 
                                gateway course completion.
                                    ``(X) Program of study.
                                    ``(XI) Status as an online 
                                education student, whether exclusively 
                                or partially enrolled in online 
                                education.
                                    ``(XII) Military or veteran benefit 
                                status (as determined based on receipt 
                                of veteran's education benefits, as 
                                defined in section 480(c)).
                                    ``(XIII) Federal Pell Grant 
                                recipient status under section 401 and 
                                Federal loan recipient status under 
                                title IV.
                                    ``(XIV) Status as a participant in 
                                a program described in section 
                                116(b)(3)(A)(ii) of the Workforce 
                                Innovation and Opportunity Act (29 
                                U.S.C. 3131(b)(3)(A)(ii)).
                    ``(D) Reevaluation.--Not less than once every 3 
                years after the implementation of the postsecondary 
                student data system described in this subsection, the 
                Commissioner, in consultation with the Advisory 
                Committee described in subparagraph (B) and working 
                with the Director, shall report to Congress the data 
                elements included in the postsecondary student data 
                system and recommend any additional data elements to be 
                included in such system.
                    ``(E) Prohibitions.--The postsecondary student data 
                system shall not include individual health data 
                (including data relating to physical health or mental 
                health), student discipline records or data, elementary 
                and secondary education data, an exact address, course 
                grades, postsecondary entrance examination results, 
                political affiliation, religion, or any other data in 
                the postsecondary student data system not described in 
                this subsection.
            ``(3) Periodic matching with other federal data systems.--
                    ``(A) Data sharing agreements.--
                            ``(i) In general.--The Commissioner, in 
                        consultation with the Director, shall ensure 
                        secure and privacy-protected periodic data 
                        matches by entering into data sharing 
                        agreements with each of the following Federal 
                        agencies and offices:
                                    ``(I) The Secretary of the Treasury 
                                and the Commissioner of the Internal 
                                Revenue Service, in order to calculate 
                                aggregate program- and institution-
                                level earnings of postsecondary 
                                students described in subparagraph 
                                (B)(ii).
                                    ``(II) The Secretary of Defense, in 
                                order to assess the use of 
                                postsecondary educational benefits and 
                                the outcomes of servicemembers who are 
                                receiving veteran's education benefits 
                                (as defined in section 480(c)).
                                    ``(III) The Secretary of Veterans 
                                Affairs, in order to assess the use of 
                                postsecondary educational benefits and 
                                outcomes of veterans who are receiving 
                                veteran's education benefits (as 
                                defined in section 480(c)).
                                    ``(IV) The Director of the Bureau 
                                of the Census, in order to assess the 
                                employment outcomes of former 
                                postsecondary education students 
                                described in paragraph (1)(D).
                                    ``(V) The Chief Operating Officer 
                                of the Office of Federal Student Aid, 
                                in order to analyze the use of 
                                postsecondary educational benefits 
                                provided under this Act.
                                    ``(VI) The Commissioner of the 
                                Social Security Administration, in 
                                order to evaluate labor market outcomes 
                                of former postsecondary education 
                                students described in paragraph (1)(D).
                                    ``(VII) The Secretary of Health and 
                                Human Services, in order to evaluate 
                                the wages of former postsecondary 
                                education students described in 
                                paragraph (1)(D).
                            ``(ii) Data sharing agreements.--The heads 
                        of Federal agencies and offices described under 
                        clause (i) shall enter into data sharing 
                        agreements with the Commissioner to ensure 
                        secure and privacy-protected periodic data 
                        matches as described in this paragraph.
                    ``(B) Categories of data.--The Commissioner, in 
                consultation with the Director, shall, at a minimum, 
                seek to ensure that the secure and privacy-protected 
                periodic data matches described in subparagraph (A) 
                permit consistent reporting of the following categories 
                of data for students described in paragraph (1)(D) who 
                completed a program of study and who did not complete a 
                program of study:
                            ``(i) Enrollment, retention, transfer, and 
                        completion outcomes.
                            ``(ii) Financial indicators for 
                        postsecondary students receiving Federal grants 
                        and loans, including grant and loan aid by 
                        source, cumulative student debt, loan repayment 
                        status, and repayment plan.
                            ``(iii) Post-completion outcomes, including 
                        earnings and employment (including industry, 
                        occupation, and location of employment, and 
                        further education, by program of study and 
                        credential level) and as measured at time 
                        intervals appropriate to the credential sought 
                        and earned.
                    ``(C) Periodic data match streamlining and 
                confidentiality.--
                            ``(i) Streamlining.--In carrying out the 
                        secure and privacy-protected periodic data 
                        matches under this paragraph, the Commissioner 
                        shall--
                                    ``(I) ensure that such matches are 
                                not continuous, but occur only 
                                periodically at appropriate intervals, 
                                as determined by the Commissioner to 
                                meet the goals of subparagraph (A); and
                                    ``(II) seek to--
                                            ``(aa) streamline the data 
                                        collection and reporting 
                                        requirements for institutions 
                                        of higher education;
                                            ``(bb) minimize duplicative 
                                        reporting across or within 
                                        Federal agencies or 
                                        departments, including 
                                        reporting requirements 
                                        applicable to institutions of 
                                        higher education under the 
                                        Workforce Innovation and 
                                        Opportunity Act (29 U.S.C. 3101 
                                        et seq.) and the Carl D. 
                                        Perkins Career and Technical 
                                        Education Act of 2006;
                                            ``(cc) protect student 
                                        privacy; and
                                            ``(dd) streamline the 
                                        application process for student 
                                        loan benefit programs available 
                                        to borrowers based on data 
                                        available from different 
                                        Federal data systems.
                            ``(ii) Review.--Not less often than once 
                        every 3 years after the establishment of the 
                        postsecondary student data system under this 
                        subsection, the Commissioner, in consultation 
                        with the Advisory Committee and the Director, 
                        shall review methods for streamlining data 
                        collection from institutions of higher 
                        education and minimizing duplicative reporting 
                        within the Department and across Federal 
                        agencies that provide data for the 
                        postsecondary student data system.
                            ``(iii) Confidentiality.--The Commissioner 
                        shall ensure that any periodic matching or 
                        sharing of data through periodic data system 
                        matches established in accordance with this 
                        paragraph--
                                    ``(I) complies with the security 
                                and privacy protections described in 
                                paragraph (1)(C)(iv) and other Federal 
                                data protection protocols;
                                    ``(II) follows industry best 
                                practices commensurate with the 
                                sensitivity of specific data elements 
                                or metrics;
                                    ``(III) does not result in the 
                                creation of a single standing, linked 
                                Federal database at the Department that 
                                maintains the information reported 
                                across other Federal agencies; and
                                    ``(IV) discloses to postsecondary 
                                students what data are included in the 
                                data system and periodically matched 
                                and how the data are used.
                            ``(iv) Correction.--The Commissioner, in 
                        consultation with the Advisory Committee and 
                        Director, shall establish a process for 
                        students to request access to only their 
                        personal information for inspection and request 
                        corrections to inaccuracies in a manner that 
                        protects the student's personally identifiable 
                        information. The Commissioner shall respond in 
                        writing to every request for a correction from 
                        a student.
            ``(4) Publicly available information.--
                    ``(A) In general.--The Commissioner shall make the 
                summary aggregate information described in subparagraph 
                (C), at a minimum, publicly available through a user-
                friendly consumer information website and analytic tool 
                for institutional and research use that--
                            ``(i) provides appropriate mechanisms for 
                        users to customize and filter information by 
                        institutional and student characteristics;
                            ``(ii) allows users to build summary 
                        aggregate reports of information, including 
                        reports that allow comparisons across multiple 
                        institutions and programs, subject to 
                        subparagraph (B);
                            ``(iii) uses appropriate statistical 
                        disclosure limitation techniques necessary to 
                        ensure that the data released to the public 
                        cannot be used to identify specific 
                        individuals; and
                            ``(iv) provides users with appropriate 
                        contextual factors to make comparisons, which 
                        may include national median figures of the 
                        summary aggregate information described in 
                        subparagraph (C).
                    ``(B) No personally identifiable information 
                available.--The summary aggregate information described 
                in this paragraph shall not include personally 
                identifiable information.
                    ``(C) Summary aggregate information available.--The 
                summary aggregate information described in this 
                paragraph shall, at a minimum, include each of the 
                following for each institution of higher education:
                            ``(i) Measures of student access, 
                        including--
                                    ``(I) admissions selectivity and 
                                yield; and
                                    ``(II) enrollment, disaggregated by 
                                each category described in paragraph 
                                (2)(C)(iii).
                            ``(ii) Measures of student progression, 
                        including retention rates and persistence 
                        rates, disaggregated by each category described 
                        in paragraph (2)(C)(iii).
                            ``(iii) Measures of student completion, 
                        including--
                                    ``(I) transfer rates and outcomes, 
                                completion rates, and time and credits 
                                to credential, disaggregated by each 
                                category described in paragraph 
                                (2)(C)(iii); and
                                    ``(II) number of completions, 
                                disaggregated by each category 
                                described in paragraph (2)(C)(iii).
                            ``(iv) Measures of student costs, 
                        including--
                                    ``(I) tuition, required fees, cost 
                                of attendance, grants and scholarships, 
                                net price, and unmet need disaggregated 
                                by in-State tuition or in-district 
                                tuition status (if applicable), direct 
                                and indirect costs, program of study 
                                (if applicable), and credential level; 
                                and
                                    ``(II) typical grant amounts and 
                                loan amounts received by students 
                                reported separately from Federal, 
                                State, local, institutional, employers, 
                                and other sources, and cumulative debt, 
                                disaggregated by--
                                            ``(aa) each category 
                                        described in paragraph 
                                        (2)(C)(iii); and
                                            ``(bb) completion status.
                            ``(v) Measures of postcollegiate student 
                        outcomes, including return on investment, 
                        employment rates, earnings, loan repayment and 
                        default rates, and further education rates. 
                        These measures shall--
                                    ``(I) be disaggregated by--
                                            ``(aa) each category 
                                        described in paragraph 
                                        (2)(C)(iii); and
                                            ``(bb) completion status; 
                                        and
                                    ``(II) be measured immediately 
                                after leaving postsecondary education 
                                and at time intervals appropriate to 
                                the credential sought or earned.
                    ``(D) Development criteria.--In developing the 
                method and format of making the information described 
                in this paragraph publicly available, the Commissioner 
                shall--
                            ``(i) focus on the needs of the users of 
                        the information, which will include students, 
                        families of students, potential students, 
                        researchers, and other consumers of education 
                        data;
                            ``(ii) take into consideration, to the 
                        extent practicable, the guidelines described in 
                        paragraph (1)(C)(ii)(I), and relevant successor 
                        documents or recommendations of such 
                        guidelines;
                            ``(iii) use modern, relevant technology and 
                        enhance and update the postsecondary student 
                        data system with information, as necessary to 
                        carry out the purpose of this paragraph;
                            ``(iv) ensure data privacy and security in 
                        accordance with standards and guidelines 
                        developed by the National Institute of 
                        Standards and Technology, and in accordance 
                        with any other Federal law relating to privacy 
                        or security, including complying with the 
                        requirements of subchapter II of chapter 35 of 
                        title 44, United States Code, specifying 
                        security categorization under the Federal 
                        Information Processing Standards, and security 
                        requirements, and setting of National Institute 
                        of Standards and Technology security baseline 
                        controls at the appropriate level; and
                            ``(v) conduct consumer testing to determine 
                        how to make the information as meaningful to 
                        users as possible.
            ``(5) Permissible disclosures of data.--
                    ``(A) Data reports and queries.--
                            ``(i) In general.--Not later than 3 years 
                        after the date of enactment of the College Cost 
                        Reduction Act, the Commissioner in consultation 
                        with the Director, shall develop and implement 
                        a secure and privacy-protected process for 
                        making student-level, nonpersonally 
                        identifiable information, with direct 
                        identifiers removed, from the postsecondary 
                        student data system available for vetted 
                        research and evaluation purposes approved by 
                        the Commissioner in a manner compatible with 
                        practices for disclosing National Center for 
                        Education Statistics restricted-use survey data 
                        as in effect on the day before the date of 
                        enactment of the College Cost Reduction Act, or 
                        by applying other research and disclosure 
                        restrictions to ensure data privacy and 
                        security. Such process shall be approved by the 
                        National Center for Education Statistics' 
                        Disclosure Review Board (or successor body).
                            ``(ii) Providing data reports and queries 
                        to institutions and states.--
                                    ``(I) In general.--The Commissioner 
                                shall provide feedback reports, at 
                                least annually, to each institution of 
                                higher education, each postsecondary 
                                education system that fully 
                                participates in the postsecondary 
                                student data system, and each State 
                                higher education body as designated by 
                                the governor.
                                    ``(II) Feedback reports.--The 
                                feedback reports provided under this 
                                clause shall include program-level and 
                                institution-level information from the 
                                postsecondary student data system 
                                regarding students who are associated 
                                with the institution or, for State 
                                representatives, the institutions 
                                within that State, on or before the 
                                date of the report, on measures 
                                including student mobility (including 
                                transfer and completion rates) and 
                                workforce outcomes, provided that the 
                                feedback aggregate summary reports 
                                protect the privacy of individuals.
                                    ``(III) Determination of content.--
                                The content of the feedback reports 
                                shall be determined by the Commissioner 
                                in consultation with the Advisory 
                                Committee and the Director.
                            ``(iii) Permitting state data queries.--The 
                        Commissioner shall, in consultation with the 
                        Advisory Committee and as soon as practicable, 
                        create a process through which States may 
                        submit lists of secondary school graduates 
                        within the State to receive summary aggregate 
                        outcomes for those students who enrolled at an 
                        institution of higher education, including 
                        postsecondary enrollment, retention and 
                        transfer, and college completion, provided that 
                        those data protect the privacy of individuals 
                        and that the State data submitted to the 
                        Commissioner are not stored in the 
                        postsecondary education system.
                            ``(iv) Regulations.--The Commissioner shall 
                        promulgate regulations to ensure fair, secure 
                        and privacy-protected, and equitable access to 
                        data reports and queries under this paragraph.
                    ``(B) Disclosure limitations.--In carrying out the 
                public reporting and disclosure requirements of this 
                subsection, the Commissioner shall use appropriate 
                statistical disclosure limitation techniques necessary 
                to ensure that the data released to the public cannot 
                include personally identifiable information or be used 
                to identify specific individuals.
                    ``(C) Sale of data prohibited.--Data collected 
                under this subsection, including the public-use data 
                set and data comprising the summary aggregate 
                information available under paragraph (4), shall not be 
                sold to any third party by the Commissioner, including 
                any institution of higher education or any other 
                entity.
                    ``(D) Limitation on use by other federal 
                agencies.--
                            ``(i) In general.--The Commissioner shall 
                        not allow any other Federal agency to use data 
                        collected under this subsection for any purpose 
                        except--
                                    ``(I) for vetted research and 
                                evaluation conducted by the other 
                                Federal agency, as described in 
                                subparagraph (A)(i); or
                                    ``(II) for a purpose explicitly 
                                authorized by an Act of Congress.
                            ``(ii) Prohibition on limitation of 
                        services.--The Secretary, or the head of any 
                        other Federal agency, shall not use data 
                        collected under this subsection to limit 
                        services to students.
                    ``(E) Law enforcement.--Personally identifiable 
                information collected under this subsection shall not 
                be used for any Federal, State, or local law 
                enforcement activity or any other activity that would 
                result in adverse action against any student or a 
                student's family.
                    ``(F) Limitation of use for federal rankings or 
                summative rating system.--The comprehensive data 
                collection and analysis necessary for the postsecondary 
                student data system under this subsection shall not be 
                used by the Secretary or any Federal entity to 
                establish any Federal ranking system of institutions of 
                higher education or a system that results in a 
                summative Federal rating of institutions of higher 
                education.
                    ``(G) Rule of construction.--Nothing in this 
                paragraph shall be construed to prevent the use of 
                individual categories of aggregate information to be 
                used for accountability purposes.
                    ``(H) Rule of construction regarding commercial use 
                of data.--Nothing in this paragraph shall be construed 
                to prohibit third-party entities from using publicly 
                available information in this data system for 
                commercial use.
            ``(6) Submission of data.--
                    ``(A) Required submission.--Each institution of 
                higher education participating in a program under title 
                IV, or the assigned agent of such institution, shall, 
                for each instructional program, and in accordance with 
                section 487(a)(17), collect, and submit to the 
                Commissioner, the data requested by the Commissioner to 
                carry out this subsection.
                    ``(B) Voluntary submission.--Any institution of 
                higher education not participating in a program under 
                title IV may voluntarily participate in the 
                postsecondary student data system under this subsection 
                by collecting and submitting data to the Commissioner, 
                as the Commissioner may request to carry out this 
                subsection.
                    ``(C) Personally identifiable information.--In 
                accordance with paragraph (2)(C)(i), if the submission 
                of an element of student-level data is prohibited under 
                paragraph (2)(F) (or otherwise prohibited by law), the 
                institution of higher education shall submit that data 
                to the Commissioner in the aggregate.
            ``(7) Unlawful willful disclosure.--
                    ``(A) In general.--It shall be unlawful for any 
                person who obtains or has access to personally 
                identifiable information in connection with the 
                postsecondary student data system described in this 
                subsection to willfully disclose to any person (except 
                as authorized in this Act or by any Federal law) such 
                personally identifiable information.
                    ``(B) Penalty.--Any person who violates 
                subparagraph (A) shall be subject to a penalty 
                described under section 3572(f) of title 44, United 
                States Code, and section 183(d)(6) of the Education 
                Sciences Reform Act of 2002 (20 U.S.C. 9573(d)(6)).
                    ``(C) Employee of officer of the united states.--If 
                a violation of subparagraph (A) is committed by any 
                officer or employee of the United States, the officer 
                or employee shall be dismissed from office or 
                discharged from employment upon conviction for the 
                violation.
            ``(8) Data security.--The Commissioner shall produce and 
        update as needed guidance and regulations relating to privacy, 
        security, and access which shall govern the use and disclosure 
        of data collected in connection with the activities authorized 
        in this subsection. The guidance and regulations developed and 
        reviewed shall protect data from unauthorized access, use, and 
        disclosure, and shall include--
                    ``(A) an audit capability, including mandatory and 
                regularly conducted audits;
                    ``(B) access controls;
                    ``(C) requirements to ensure sufficient data 
                security, quality, validity, and reliability;
                    ``(D) confidentiality protection in accordance with 
                the applicable provisions of subchapter III of chapter 
                35 of title 44, United States Code;
                    ``(E) appropriate and applicable privacy and 
                security protection, including data retention and 
                destruction protocols and data minimization, in 
                accordance with the most recent Federal standards 
                developed by the National Institute of Standards and 
                Technology; and
                    ``(F) protocols for managing a breach, including 
                breach notifications, in accordance with the standards 
                of National Center for Education Statistics.
            ``(9) Data collection.--The Commissioner shall ensure that 
        data collection, maintenance, and use under this subsection 
        complies with section 552a of title 5, United States Code.
            ``(10) Definitions.--In this subsection:
                    ``(A) Institution of higher education.--The term 
                `institution of higher education' has the meaning given 
                the term in section 102.
                    ``(B) Minority-serving institution.--The term 
                `minority-serving institution' means an institution of 
                higher education listed in section 371(a).
                    ``(C) Personally identifiable information.--The 
                term `personally identifiable information' means 
                personally identifiable information within the meaning 
                of section 444 of the General Education Provisions 
                Act.''.

SEC. 114. DATABASE OF STUDENT INFORMATION PROHIBITED.

    (a) In General.--Section 134(b) of the Higher Education Act of 1965 
(20 U.S.C. 1015c(b)) is amended to read as follows:
    ``(b) Exception.--The provisions of subsection (a) shall not apply 
to a system (or a successor system)--
            ``(1) that--
                    ``(A) is necessary for the operation of programs 
                authorized by title II, IV, or VII; and
                    ``(B) was in use by the Secretary, directly or 
                through a contractor, as of the day before the date of 
                enactment of the College Cost Reduction Act; or
            ``(2) required under section 132.''.
    (b) Program Participation Agreements.--
            (1) In general.--Paragraph (17) of section 487(a) of the 
        Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended to 
        read as follows:
            ``(17) The institution or the assigned agent of the 
        institution will collect and submit to the Commissioner for 
        Education Statistics data in accordance with section 132(f), 
        the non-student related surveys within the Integrated 
        Postsecondary Education Data System (IPEDS), or any other 
        Federal institution of higher education data collection effort 
        (as designated by the Secretary), in a timely manner and to the 
        satisfaction of the Secretary.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect no later than 3 years after the date of 
        enactment of this Act.
    (c) Reporting Burden.--The Secretary of Education and the 
Commissioner for Education Statistics shall take such steps as are 
necessary to ensure that the development and maintenance of the 
postsecondary student data system required under section 132(f) of the 
Higher Education Act of 1965, as added by section 113 of this Act, 
occurs in a manner that reduces the reporting burden for entities that 
reported into the Integrated Postsecondary Education Data System 
(IPEDS).

                   TITLE II--ACCESS AND AFFORDABILITY

                         PART A--FINANCIAL NEED

SEC. 201. AMOUNT OF NEED; COST OF ATTENDANCE; MEDIAN COST OF COLLEGE.

    (a) Amount of Need.--Section 471 (20 U.S.C. 1087kk), as amended by 
the FAFSA Simplification Act, is further amended by amending paragraph 
(1) to read as follows:
            ``(1)(A) for award year 2024-2025, the cost of attendance 
        of such student; and
            ``(B) for award year 2025-2026 and each subsequent award 
        year, the median cost of college of the program of study of 
        such student, minus''.
    (b) Cost of Attendance.--Section 472(c) (20 U.S.C. 1087ll(c)), as 
amended by the FAFSA Simplification Act, is further amended by striking 
``of the institution'' and inserting ``of each program of study at the 
institution''.
    (c) Median Cost of College.--Part F of title IV (20 U.S.C. 1087kk), 
as amended by the FAFSA Simplification Act, is further amended by 
inserting after section 472, as amended by subsection (b), the 
following:

``SEC. 472A. DETERMINATION OF MEDIAN COST OF COLLEGE.

    ``For the purpose of this title, the term `median cost of college', 
when used with respect to a program of study offered by one or more 
institutions of higher education for an award year, means the median of 
the cost of attendance (as defined in section 472) for the program of 
study across all institutions of higher education offering such a 
program for the preceding award year.''.

                         PART B--FINANCIAL AID

                           Subpart 1--Grants

SEC. 211. FEDERAL PELL GRANT PROGRAM.

    (a) Award May Not Exceed Median Cost of College.--Section 401(b)(3) 
(20 U.S.C. 1070a(b)(3)), as amended by title VII of division FF of the 
Consolidated Appropriations Act, 2021 (title VII of division FF of 
Public Law 116-260) (referred to in this Act as the ``FAFSA 
Simplification Act''), is further amended by adding at the end the 
following:
            ``(3) Award may not exceed median cost of college.--No 
        Federal Pell Grant under this subpart shall exceed the median 
        cost of college (as defined in section 472A) for the program at 
        which that student is in attendance. If, with respect to any 
        student, it is determined that the amount of a Federal Pell 
        Grant for that student exceeds the median cost of college for 
        such program for that year, the amount of the Federal Pell 
        Grant shall be reduced until the Federal Pell Grant does not 
        exceed the median cost of college for such program for that 
        year.''.
    (b) Pell PLUS Program.--Section 401 (20 U.S.C. 1070a), as amended 
by the FAFSA Simplification Act, is further amended by adding at the 
end the following:
    ``(k) Pell Plus Program.--
            ``(1) Program established.--
                    ``(A) In general.--For each award year for which a 
                student receives a Federal Pell Grant and meets the 
                requirements of paragraph (2), the Secretary shall 
                award such student an additional Federal Pell Grant, 
                referred to as a `Federal Pell Plus Grant', in an 
                amount equal to the amount of the student's Federal 
                Pell Grant award determined under this section for such 
                award year, except as provided in subparagraph (B).
                    ``(B) Median cost of college reductions.--In any 
                case in which a student is awarded a Federal Pell Grant 
                under this section and a Federal Pell Plus grant under 
                this subsection for an award year, the combined total 
                of such Federal Pell Grant and such Federal Pell Plus 
                Grant of such student shall not exceed the median cost 
                of college (as defined in section 472A) of the program 
                in which the student is in attendance for that year. In 
                the case that such combined total exceeds the median 
                cost of college for the program for that year, the 
                Secretary shall reduce the amount of the Federal Pell 
                Plus Grant awarded to the student until the combined 
                total of such reduced Federal Pell Plus Grant and the 
                Federal Pell Grant of the student does not exceed such 
                median cost of college.
            ``(2) Student eligibility.--A student meets the 
        requirements of this paragraph, if the student--
                    ``(A) during the award year during which the 
                student receives a Federal Pell Plus Grant under 
                paragraph (1)--
                            ``(i) is enrolled in the student's first 
                        undergraduate baccalaureate course of study; 
                        and
                            ``(ii) is maintaining progress toward 
                        completion within 100 percent of the expected 
                        time to completion, as determined by 
                        calculating the difference between--
                                    ``(I) the program length for the 
                                program of study in which such student 
                                is in attendance; and
                                    ``(II) the period of such program 
                                that such student has completed; and
                    ``(B) has completed at least 4 semesters, or the 
                equivalent, of such program.
            ``(3) Duration limits.--The period during which a student 
        receives a Federal Pell Plus Grant under paragraph (1) shall be 
        included in calculating the duration limits with respect to 
        such student under subsection (d)(5), and to the extent that 
        such period was a fraction of a semester or the equivalent, 
        only that same fraction of such semester or equivalent shall 
        count towards such duration limits.
            ``(4) Pell plus institutional and programmatic 
        eligibility.--For purposes of this subsection, a Pell Plus 
        institution is an eligible institution for purposes of this 
        subpart that--
                    ``(A) notifies the Secretary that the institution 
                desires to participate in the Pell Plus program under 
                this subsection--
                            ``(i) with respect to a specific program of 
                        study at the institution; or
                            ``(ii) with respect to each program of 
                        study at the institution;
                    ``(B) agrees to provide, to each student receiving 
                a Federal Pell Plus Grant under paragraph (1)--
                            ``(i) for each award year for which the 
                        student receives such Federal Pell Plus Grant, 
                        a notification that shall include--
                                    ``(I) whether the student is 
                                maintaining the progress toward 
                                completion required under paragraph 
                                (2)(A)(ii);
                                    ``(II) in a case in which the 
                                student is not maintaining such 
                                progress toward completion, a list of 
                                available student support services and 
                                additional resources to assist the 
                                student in completing the course of 
                                study for which the student is 
                                receiving the Federal Pell Plus Grant 
                                in the manner described under paragraph 
                                (2)(A)(ii); and
                                    ``(III) the amount of funds the 
                                student is receiving under the Federal 
                                Pell Plus Grant; and
                            ``(ii) in the case of a student who, as of 
                        the end of the first semester of the third 
                        academic year of the program of study in which 
                        the student is in attendance, is not 
                        maintaining the progress toward completion 
                        required under paragraph (2)(A)(ii), a warning 
                        during such third academic year that the 
                        student will not be eligible for a Federal Pell 
                        Plus Grant under paragraph (1) for the fourth 
                        academic year of such course of study unless 
                        the student demonstrates, by not later than the 
                        beginning of the fourth academic year, progress 
                        toward completing such course of study by the 
                        end of the fourth academic year of such course 
                        of study;
                    ``(C) meets the requirements of paragraph (5); and
                    ``(D) the Secretary determines meets the 
                requirements of this paragraph and paragraph (5).
            ``(5) Maximum total price guarantee.--
                    ``(A) Guarantee.--To be eligible to be a Pell Plus 
                institution under this subsection, an eligible 
                institution shall--
                            ``(i) provide to each student receiving a 
                        Federal Pell Grant, prior to the first award 
                        year in which the student enrolls at the 
                        institution--
                                    ``(I) for each program of study 
                                participating in the Pell Plus program, 
                                the maximum total price for completion 
                                of the program of study, determined by 
                                the institution in accordance with 
                                section 415C(e); and
                                    ``(II) a guarantee that, for the 
                                minimum guarantee period for which the 
                                student receives a Federal Pell Grant, 
                                if the student is enrolled in any 
                                program of study participating in the 
                                Pell Plus program, the maximum total 
                                price for completion of such program of 
                                study charged to the student will not 
                                exceed the median value-added earnings 
                                of students who completed such program, 
                                based on the most recent data available 
                                on the College Scorecard in the award 
                                year prior to the first award year in 
                                which the student enrolls at the 
                                institution; and
                            ``(ii) provide information about the 
                        guarantee described in clause (i)(II) to 
                        prospective students by including such 
                        information on the public website of the 
                        institution and in the catalog, marketing 
                        materials, and other official publications of 
                        the institution.
                    ``(B) Duration of minimum guarantee period.--
                            ``(i) In general.--The minimum period 
                        during which a student shall be provided a 
                        guarantee under subparagraph (A) with respect 
                        to the maximum total price for completion of a 
                        program of study at an eligible institution 
                        shall be the median time to credential of 
                        students who completed any undergraduate 
                        program of study at the institution during the 
                        most recent award year for which data are 
                        available, except that such minimum guarantee 
                        period shall not be less than the program 
                        length of the program of study in which the 
                        student is enrolled.
                            ``(ii) Limitation.--An eligible institution 
                        shall not be required to provide a maximum 
                        total price guarantee under subparagraph (A) to 
                        a student after the conclusion of the 6-year 
                        period beginning on the first day on which the 
                        student enrolled at such institution.''.
    (c) Information Dissemination Activity.--Section 485(a)(1) (20 
U.S.C. 1092(a)(1)) is amended--
            (1) in subparagraph (U), by striking ``and'' at the end;
            (2) in subparagraph (V), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(W) in the case of an institution under section 
                401(k), any applicable information with respect to the 
                institution's participation in the Federal Pell Plus 
                Grant program under such subsection.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect with respect to award year 2025-2026 and each succeeding award 
year.

SEC. 212. CAMPUS-BASED AID PROGRAMS.

    (a) Termination of Certain Programs.--Notwithstanding subparts 3 
and 4 of part A, or part C, of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070 et seq.), or any other provision of law, except as 
expressly authorized by an Act of Congress enacted after the date of 
enactment of this Act, beginning on October 1, 2026--
            (1) no funds are authorized to be appropriated, or may be 
        expended, under this Act or any other Act to--
                    (A) make payments to institutions for Federal 
                Supplemental Educational Opportunity Grants under 
                subpart 3 of part A of title IV of such Act (20 U.S.C. 
                1070b et seq.); or
                    (B) make payments to States for the Leveraging 
                Educational Assistance Partnership Program under 
                subpart 4 of part A of title IV (20 U.S.C. 1070c et 
                seq.); and
            (2) the authority of the Secretary to carry out any program 
        or activity described in paragraph (1) shall be terminated.
    (b) Promise Grants.--Subpart 4 of part A of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070c et seq.) is amended to read as 
follows:

 ``Subpart 4--Promoting Real Opportunities to Maximize Investments and 
                          Savings in Education

``SEC. 415A. PURPOSE.

    ``(a) Purpose.--It is the purpose of this subpart to provide 
performance-based grants to--
            ``(1) assist institutions in providing certainty to 
        students and families about postsecondary affordability;
            ``(2) increase postsecondary access and economic mobility; 
        and
            ``(3) ensure that students, institutions, and taxpayers 
        receive a financial return for investments in postsecondary 
        education.

``SEC. 415B. PROMISE GRANTS.

    ``For award year 2026-2027 and each succeeding award year, from 
reserved funds remitted to the Secretary in accordance with section 
454(d) and additional funds authorized under section 415E, as 
necessary, the Secretary shall award PROMISE grants to eligible 
institutions to carry out the purpose of this subpart. PROMISE grants 
awarded under this subpart shall be performance-based and shall be 
awarded to each eligible institution for a 6-year period in an amount 
that is determined in accordance with section 415D.

``SEC. 415C. ELIGIBLE INSTITUTIONS; APPLICATION.

    ``(a) Eligible Institution.--To be eligible for a PROMISE grant 
under this subpart, an institution shall--
            ``(1) be an institution of higher education under section 
        102, except that an institution described in section 
        102(a)(1)(C) shall not be an eligible institution under this 
        subpart; and
            ``(2) meet the maximum total price guarantee requirements 
        under subsection (c).
    ``(b) Application.--An eligible institution seeking a PROMISE grant 
under this subpart (including a renewal of such a grant) shall submit 
to the Secretary an application, at such time as the Secretary may 
require, that contains the information required in this subsection. 
Such application shall--
            ``(1) demonstrate that the institution--
                    ``(A) meets the maximum total price guarantee 
                requirements under subsection (c); and
                    ``(B) will continue to meet the maximum total price 
                guarantee requirements for each award year during the 
                grant period with respect to students first enrolling 
                at the institution for each such award year;
            ``(2) describe how grant funds awarded under this subpart 
        will be used by the institution to carry out the purposes of 
        this Act, including activities related to--
                    ``(A) postsecondary affordability, including--
                            ``(i) the expansion and continuation of the 
                        maximum total price guarantee requirements 
                        under subsection (c); and
                            ``(ii) any other activities to be carried 
                        out by the institution to increase 
                        postsecondary affordability and minimize the 
                        total net price required for completion (as 
                        defined in section 132(a)) paid by students 
                        receiving need-based student aid;
                    ``(B) postsecondary access, which may include--
                            ``(i) the activities described in section 
                        485E of this Act; and
                            ``(ii) any other activities to be carried 
                        out by the institution to increase 
                        postsecondary access and expand opportunities 
                        for low- and middle-income students; and
                    ``(C) postsecondary student success, which may 
                include--
                            ``(i) activities to improve completion 
                        rates and reduce time to credential, including 
                        the activities described in section 741 of this 
                        Act, as amended by the College Cost Reduction 
                        Act; and
                            ``(ii) any other activities to be carried 
                        out by the institution to increase value-added 
                        earnings and postsecondary student success;
            ``(3) describe--
                    ``(A) how the institution will evaluate the 
                effectiveness of the institution's use of grant funds 
                awarded under this subpart; and
                    ``(B) how the institution will collect and 
                disseminate information on promising practices 
                developed with the use of such grant funds; and
            ``(4) in the case of an institution that has previously 
        received a grant under this subpart, contain the evaluation 
        required under paragraph (3) for each previous grant.
    ``(c) Maximum Total Price Guarantee Requirements.--As a condition 
of eligibility for a PROMISE grant under this subpart, an institution 
shall--
            ``(1) for each award year beginning after the date of 
        enactment of the College Cost Reduction Act, not later than one 
        year before the start of each such award year (except that, for 
        the first award year beginning after such date of enactment, 
        the institution shall meet these requirements as soon as 
        practicable such date of enactment)--
                    ``(A) determine the maximum total price for 
                completion, in accordance with subsection (e), for each 
                program of study at the institution--
                            ``(i) applicable to students in each income 
                        category described in section 132(c)(2)(A)(i); 
                        and
                            ``(ii) applicable to students in each 
                        student aid index category determined by the 
                        Secretary in accordance with section 
                        132(c)(2)(A)(ii); and
                    ``(B) publish such information on the institution's 
                website and in the institution's catalog, marketing 
                materials, or other official publications;
            ``(2) for the award year for which the institution is 
        applying for a PROMISE grant, and at least one award year 
        preceding such award year, provide to each student who first 
        enrolls, or plans to enroll, in the institution during the 
        award year and who receives Federal financial aid under this 
        title a maximum total price guarantee, in accordance with this 
        section, for the minimum guarantee period applicable to the 
        student; and
            ``(3) provide to the Secretary an assurance that the 
        institution will continue to meet each of the maximum total 
        price guarantee requirements under this subsection for students 
        who first enroll, or plan to enroll, in the institution during 
        each award year included in the grant period.
    ``(d) Duration of Minimum Guarantee Period.--
            ``(1) In general.--The minimum period during which a 
        student shall be provided a guarantee under subsection (c) with 
        respect to the maximum total price for completion of a program 
        of study at an institution shall be the median time to 
        credential of students who completed any undergraduate program 
        of study at the institution during the most recent award year 
        for which data are available, except that such minimum 
        guarantee period shall not be less than the program length of 
        the program of study in which the student is enrolled.
            ``(2) Limitation.--An institution shall not be required to 
        provide a maximum total price guarantee under subsection (c) to 
        a student after the conclusion of the 6-year period beginning 
        on the first day on which the student enrolled at such 
        institution.
    ``(e) Determination of Maximum Total Price for Completion.--
            ``(1) In general.--For the purposes of subsection (c) and 
        the Pell Plus program under section 401(k), an institution 
        shall determine, prior to the first award year in which a 
        student enrolls at the institution, the maximum total price 
        that may be charged to the student for completion of a program 
        of study at the institution for the minimum guarantee period 
        applicable to a student, before application of any Federal Pell 
        grants or other Federal financial aid under this title. Such a 
        maximum total price for completion shall be determined for 
        students in each income category and student aid index category 
        (as determined in accordance with section 132(c)(2)(A)). In 
        determining the maximum total price for completion to be 
        charged to each such category of students, the institution may 
        consider the ability of a category of students to pay tuition 
        and fees (including the required costs described in section 
        484(b)(3)(A)(i)(I)), but may not include in such consideration 
        any Federal Pell grants or other Federal financial aid awards 
        that may be available to such category of students under this 
        title.
            ``(2) Multiple maximum total price guarantees.--In the 
        event that a student receives more than one maximum total price 
        guarantee because the student is included in more than one 
        category of students for which the institution determines a 
        maximum total price guarantee amount for the purposes of 
        subsection (c), or the student is participating in the Pell 
        Plus program under section 401(k), the maximum total price 
        guarantee applicable to such student for the purposes of this 
        section and the Pell Plus program shall be equal to the lowest 
        such guarantee amount.

``SEC. 415D. GRANT AMOUNTS; FLEXIBLE USE OF FUNDS.

    ``(a) Grant Amount Formula.--
            ``(1) Formula.--Subject to subsection (b), the amount of a 
        PROMISE grant for an eligible institution for each year of the 
        grant period shall be determined by the Secretary annually and 
        shall be the amount determined by multiplying--
                    ``(A) the lesser of--
                            ``(i) the difference determined by 
                        subtracting one from the quotient of--
                                    ``(I) the average, for the 3 most 
                                recent award years for which data are 
                                available, of the median value-added 
                                earnings (as defined in section 103) 
                                for each such award year of students 
                                who completed any program of study of 
                                the institution; divided by
                                    ``(II) the average for the 3 most 
                                recent award years, of the maximum 
                                total price applicable for each such 
                                award year to students enrolled in the 
                                institution in any program of study who 
                                received financial aid under this 
                                title; or
                            ``(ii) the number two;
                    ``(B) the average, for the 3 most recent award 
                years, of the total dollar amount of Federal Pell 
                Grants (excluding Pell Plus Grants awarded under 
                section 401(k)) awarded to students enrolled in the 
                institution in each such award year; and
                    ``(C) the average, for the 3 most recent award 
                years, of the percentage of low-income students who 
                received Federal financial assistance under this title 
                who were enrolled in the institution in each such award 
                year who--
                            ``(i) completed a program of study at the 
                        institution within 100 percent of the program 
                        length of such program; or
                            ``(ii) only in the case of a two-year 
                        institution or a less than two-year 
                        institution--
                                    ``(I) transfer to a four-year 
                                institution; and
                                    ``(II) within 4 years after first 
                                enrolling at the two-year or less than 
                                two-year institution, complete a 
                                program of study at the four-year 
                                institution for which a bachelor's 
                                degree (or substantially similar 
                                credential) is awarded.
            ``(2) Definition of low-income.--In this section, the term 
        `low-income', when used with respect to a student, means that 
        the student's family income does not exceed the maximum income 
        in the lowest income category described in section 
        132(c)(2)(A)(i).
    ``(b) Maximum Grant Amount.--Notwithstanding subsection (a), the 
maximum amount an eligible institution may receive annually for a grant 
under this subpart shall be the amount equal to--
            ``(1) the average, for the 3 most recent award years, of 
        the number of students enrolled in the institution in an award 
        year who receive Federal financial aid under this title; 
        multiplied by
            ``(2) $5,000.
    ``(c) Flexible Use of Funds.--A PROMISE grant awarded under this 
subpart shall be used by an eligible institution to carry out the 
purposes of this subpart, including--
            ``(1) carrying out activities included in the institution's 
        application for such grant related to postsecondary 
        affordability, access, and student success;
            ``(2) evaluating the effectiveness of the activities 
        carried out with such grant in accordance with section 
        415C(b)(3)(A); and
            ``(3) collecting and disseminating promising practices 
        related to the activities carried out with such grant, in 
        accordance with section 415C(b)(3)(B).

``SEC. 415E. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authorization To Use Reserved Funds.--To carry out this 
subpart, there shall be available to the Secretary any funds remitted 
to the Secretary as risk-sharing payments in accordance with section 
454(d) for any award year. The Secretary shall use the funds received 
through risk-sharing payments to provide the grants.
    ``(b) Secondary Authorization.--In addition to the amounts 
available to the Secretary under subsection (a), there are authorized 
to be appropriated, for fiscal year 2026 and each of the 9 succeeding 
fiscal years, $2,000,000,000, to carry out this subpart in any award 
year for which the amounts available under subsection (a) are 
insufficient to fully fund the PROMISE grants awarded under this 
subpart in such award year.
    ``(c) Insufficient Funds.--If the amounts made available to carry 
out this subpart for a fiscal year are not sufficient to provide grants 
to all eligible institutions in the amount determined under this 
subpart, the Secretary shall first provide grants to the eligible 
institutions that have the highest percentage of students who are low-
income students (as defined in section 415D).''.

                            Subpart 2--Loans

SEC. 221. LOAN LIMITS.

    (a) Stafford Loans.--
            (1) Aggregate and annual limits for graduate and 
        professional students.--Section 455(a) (20 U.S.C. 1087e(a)) is 
        amended--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A)(ii), by inserting 
                        before the period at the end the following: ``, 
                        except that for any period of instruction 
                        beginning on or after July 1, 2025, such 
                        maximum annual amount shall be determined in 
                        accordance with subparagraph (C)'';
                            (ii) in subparagraph (B), by inserting 
                        before the period at the end the following: 
                        ``for any period of instruction through June 
                        30, 2025''; and
                            (iii) by adding at the end the following:
                    ``(C) Annual limits.--Notwithstanding any provision 
                of this part or part B, for any period of instruction 
                beginning on or after July 1, 2025, the maximum annual 
                amount of Federal Direct Unsubsidized Stafford loans 
                that a graduate or professional student may borrow in 
                any academic year (as defined in section 481(a)(2)) or 
                its equivalent shall be median cost of college (as 
                defined in section 472A) of the program of study in 
                which the student is enrolled, except that the sum of 
                such annual loan amount and other financial assistance 
                (as defined in section 480(i)) that the student 
                receives for such academic year may not exceed the cost 
                of attendance of such student.
                    ``(D) Aggregate limits.--Notwithstanding any 
                provision of this part or part B, for any period of 
                instruction beginning on or after July 1, 2025, the 
                maximum aggregate amount of Federal Direct Unsubsidized 
                Stafford loans that--
                            ``(i) a graduate student may borrow shall 
                        be $100,000; and
                            ``(ii) a professional student may borrow 
                        shall be $150,000.
                    ``(E) Exception for certain students.--
                            ``(i) In general.--The provisions listed in 
                        clause (ii) shall not apply with respect to any 
                        individual who, as of June 30, 2025, is 
                        enrolled in a program of study at an 
                        institution of higher education, and has 
                        received a loan (or on whose behalf a loan was 
                        made) under this part for such program, during 
                        the individual's expected time to completion of 
                        such program, as determined by calculating by 
                        the difference between--
                                    ``(I) the program length for the 
                                program of study in which such 
                                individual is enrolled; and
                                    ``(II) the period of such program 
                                that such individual has completed,
                         except that such expected time to completion 
                        may not exceed 3 years.
                            ``(ii) Provisions.--An individual described 
                        in clause (i) shall not be subject to 
                        subparagraphs (C) and (D) of this paragraph, or 
                        paragraph (4) or (6).''.
            (2) Annual limits for undergraduate borrowers.--Section 
        455(a) (20 U.S.C. 1087e(a)) is further amended by adding at the 
        end the following:
            ``(4) Annual and aggregate loan limits for undergraduate 
        and all borrowers.--
                    ``(A) Undergraduate students.--
                            ``(i) Annual loan limits.--
                                    ``(I) Subsidized loans.--
                                Notwithstanding any provision of this 
                                part or part B, for any period of 
                                instruction beginning on or after July 
                                1, 2025, the maximum annual amount of 
                                Federal Direct Stafford loans that an 
                                undergraduate student may borrow in any 
                                academic year (as defined in section 
                                481(a)(2)) or its equivalent shall be 
                                the difference between--
                                            ``(aa) the median cost of 
                                        college (as defined in section 
                                        472A) of the program of study 
                                        in which the student is 
                                        enrolled; and
                                            ``(bb) the sum of the 
                                        Federal Pell Grant and Federal 
                                        Pell Plus Grant under section 
                                        401 awarded to the student for 
                                        such academic year,
                                except that (1) the amount of such 
                                Federal Direct Stafford loans awarded 
                                to the student for such academic year 
                                may not exceed the maximum annual limit 
                                described in section 428(b)(1) that is 
                                applicable to such student; and (2) the 
                                sum of such Federal Direct Stafford 
                                Loans, the amount of such Federal Pell 
                                Grant, Federal Pell Plus Grant, and 
                                other financial assistance (as defined 
                                in section 480(i)) that the student 
                                receives for such academic year may not 
                                exceed the cost of attendance of such 
                                student.
                                    ``(II) Unsubsidized loans.--
                                Notwithstanding any provision of this 
                                part or part B, for any period of 
                                instruction beginning on or after July 
                                1, 2025, the maximum annual amount of 
                                Federal Direct Unsubsidized Stafford 
                                loans that an undergraduate student may 
                                borrow in any academic year (as defined 
                                in section 481(a)(2)) or its equivalent 
                                shall be the difference between--
                                            ``(aa) the median cost of 
                                        college (as defined in section 
                                        472A) of the program of study 
                                        in which the student is 
                                        enrolled; and
                                            ``(bb) the sum of--

                                                    ``(AA) the amount 
                                                of Federal Direct 
                                                Stafford loans awarded 
                                                to such student for 
                                                such academic year; and

                                                    ``(BB) the amount 
                                                of the Federal Pell 
                                                Grant and Federal Pell 
                                                Plus Grant under 
                                                section 401 awarded to 
                                                the student for such 
                                                academic year,

                                        except that the sum of all 
                                        Federal financial aid under 
                                        this title and other financial 
                                        assistance (as defined in 
                                        section 480(i)) that such 
                                        student receives for such 
                                        academic year may not exceed 
                                        the cost of attendance for such 
                                        student.
                            ``(ii) Aggregate limits.--Notwithstanding 
                        any provision of this part or part B, for any 
                        period of instruction beginning on or after 
                        July 1, 2025, with respect to an undergraduate 
                        student--
                                    ``(I) the maximum aggregate amount 
                                of Federal Direct Stafford loans and 
                                Federal Direct Unsubsidized Stafford 
                                loans that may be borrowed shall be 
                                $50,000;
                                    ``(II) the maximum aggregate amount 
                                of Federal Direct Stafford loans that 
                                may be borrowed shall be $23,000; and
                                    ``(III) the maximum aggregate 
                                amount of Federal Direct Unsubsidized 
                                Stafford loans that may be borrowed 
                                shall be $50,000.
                    ``(B) Students in a qualifying undergraduate 
                program.--
                            ``(i) Aggregate limits.--Notwithstanding 
                        the aggregate limits described in subparagraph 
                        (A)(ii), a student enrolled in a qualifying 
                        undergraduate program shall be subject to the 
                        aggregate limits for professional students 
                        described in paragraph (3)(D)(ii).
                            ``(ii) Qualifying undergraduate program 
                        defined.--For purposes of this subparagraph, 
                        the term `qualifying undergraduate program' 
                        means a program of study--
                                    ``(I) for which the total tuition 
                                and fees (including the required costs 
                                described in section 
                                484(b)(3)(A)(i)(I)) exceeds the 
                                aggregate limits for undergraduate 
                                students described in subparagraph 
                                (A)(ii);
                                    ``(II) that meets certification 
                                requirements of the Federal agency that 
                                directly regulates the program and 
                                provides final licensing and 
                                credentials to students upon 
                                completion; and
                                    ``(III) that has had, for the 
                                previous three award years--
                                            ``(aa) a verified 
                                        completion rate of at least 70 
                                        percent, within 150 percent of 
                                        the program length of such 
                                        program of study; and
                                            ``(bb) a verified job 
                                        placement rate of at least 70 
                                        percent, measured 180 days 
                                        after completion.
                    ``(C) All students.--The maximum aggregate amount 
                of loans made, insured, or guaranteed under this title 
                to a student shall be $200,000.''.
            (3) Institutionally determined limits.--Section 455(a) of 
        the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is 
        further amended by adding at the end the following:
            ``(5) Institutionally determined limits.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, an eligible institution 
                (at the discretion of a financial aid administrator at 
                the institution) may prorate or limit the amount of a 
                loan any student who is enrolled in a program of study 
                for a period of instruction beginning on or after July 
                1, 2024, at that institution, may borrow under this 
                part for an academic year--
                            ``(i) if the institution can reasonably 
                        demonstrate that outstanding amounts owed of 
                        loans made under this title are or would be 
                        excessive for students who complete such 
                        program, based on the most recently available 
                        data from the College Scorecard (or successor 
                        website of the Department) on--
                                    ``(I) the median of the value-added 
                                earnings of students who complete such 
                                program; and
                                    ``(II) the median debt owed, and 
                                the repayment rate, on loans made under 
                                this part, of such students;
                            ``(ii) in a case in which the student is 
                        enrolled on a less than full-time basis or the 
                        student is enrolled for less than the period of 
                        enrollment to which the annual loan limit 
                        applies under this subsection, based on the 
                        student's enrollment status; or
                            ``(iii) based on the year of the program 
                        for which the student is seeking such loan.
                    ``(B) Application to all students.--Any proration 
                or limiting of loan amounts under subparagraph (A) 
                shall be applied in the same manner to all students 
                enrolled in a program of study.
                    ``(C) Increases for individual students.--Upon the 
                request of a student whose loan amount for an academic 
                year has been prorated or limited under subparagraph 
                (A), an eligible institution (at the discretion of the 
                financial aid administrator at the institution) may 
                increase such loan amount to an amount not exceeding 
                the annual loan amount applicable to such student under 
                this paragraph for such academic year.''.
    (b) Termination of Authority To Make Federal Direct Plus Loans to 
Any Student or Parent Borrower.--Section 455(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding at the end the 
following:
            ``(6) Termination of authority to make federal direct plus 
        loans.--Notwithstanding any provision of this part or part B, 
        except as provided in paragraph (3)(E), for any period of 
        instruction beginning on or after July 1, 2025, no Federal 
        Direct PLUS loans may be made to any parent borrower or 
        graduate or professional student borrower.''.

SEC. 222. LOAN REPAYMENT.

    (a) Repayment Plans.--Section 455(d) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(d)) is amended--
            (1) in paragraph (1)(D) by inserting ``(including a 
        repayment assistance plan under 455(e)(9))'' after ``an income 
        contingent repayment plan''; and
            (2) by adding at the end the following:
            ``(6) Repayment plans for loans made on or after july 1, 
        2024.--
                    ``(A) Design and selection.--Notwithstanding 
                paragraph (1), beginning on July 1, 2024, the Secretary 
                shall offer a borrower of a loan made under this part 
                on or after July 1, 2024, two plans for repayment of 
                such loan, including principal and interest on the 
                loan. The borrower shall be entitled to accelerate, 
                without penalty, repayment on such loans. The borrower 
                may choose--
                            ``(i) a standard repayment plan with a 
                        fixed monthly repayment amount paid over a 
                        fixed period of time, not to exceed 10 years; 
                        or
                            ``(ii) a repayment assistance plan under 
                        section 455(e)(9).
                    ``(B) Selection by secretary.--If such borrower 
                does not select a repayment plan described in 
                subparagraph (A), the Secretary shall provide the 
                borrower with the repayment plan described in 
                subparagraph (A)(i).
                    ``(C) Changes in selection.--
                            ``(i) In general.--Subject to clause (ii), 
                        a borrower may change the borrower's selection 
                        of a repayment plan under subparagraph (A), or 
                        the Secretary's selection of a plan for the 
                        borrower under subparagraph (B), as the case 
                        may be. Nothing in this subsection shall 
                        prohibit the Secretary from encouraging 
                        distressed borrowers from enrolling in the 
                        repayment assistance plan under section 
                        455(e)(9).
                            ``(ii) Same repayment plan required.--All 
                        loans made under this part on or after July 1, 
                        2024, to a borrower shall be repaid under the 
                        same repayment plan under subparagraph (A), 
                        except that the borrower may repay an excepted 
                        PLUS loan or an excepted consolidation loan (as 
                        such terms are defined in section 455(e)(9)) 
                        separately from other loans made under this 
                        part to the borrower.
                    ``(D) Repayment after default.--The Secretary may 
                require a borrower who has defaulted on a loan made 
                under this part to--
                            ``(i) pay all reasonable collection costs 
                        associated with such loan; and
                            ``(ii) repay the loan pursuant to the 
                        repayment assistance plan under section 
                        455(e)(9).
                    ``(E) Prohibitions.--The Secretary may not--
                            ``(i) authorize a borrower of a loan made 
                        under this part on or after July 1, 2024, to 
                        repay such loan pursuant to a repayment plan 
                        that is not described in clause (i) or (ii) of 
                        subparagraph (A); or
                            ``(ii) carry out or modify a repayment plan 
                        for any loan made under this part on or after 
                        July 1, 2024, that is not described in such 
                        clause (i) or (ii).''.
    (b) Repayment Assistance Plan.--Section 455(e) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(e)) is amended by adding at the 
end the following:
            ``(9) Repayment assistance plan.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this Act, beginning on July 1, 2024, the 
                Secretary shall carry out a repayment assistance 
                program that shall have the terms and conditions of an 
                income-contingent repayment plan described in 
                paragraphs (1) through (8), except that--
                            ``(i) a borrower of any loan made under 
                        this part (other than an excepted PLUS loan or 
                        excepted consolidation loan), may elect to have 
                        the borrower's aggregate monthly payment for 
                        all such loans not exceed the applicable 
                        monthly payment for the borrower, except that a 
                        borrower may not be precluded from repaying an 
                        amount that exceeds such applicable monthly 
                        payment for any month;
                            ``(ii) the Secretary shall apply the 
                        borrower's monthly payment under this paragraph 
                        first toward interest due on such a loan, next 
                        toward any fees due on the loan, and then 
                        toward the principal of the loan;
                            ``(iii) any principal due and not paid 
                        under clause (ii) shall be deferred;
                            ``(iv) the amount of time the borrower 
                        makes monthly payments under clause (i) may 
                        exceed 10 years;
                            ``(v) notwithstanding paragraph (7), the 
                        Secretary shall repay or cancel any outstanding 
                        balance of principal and interest due on all 
                        loans made under this part (other than excepted 
                        PLUS loans or excepted consolidation loans) to 
                        a borrower--
                                    ``(I) who, at any time, elected to 
                                participate in a repayment assistance 
                                plan under clause (i);
                                    ``(II) whose final monthly payment 
                                for such loans prior to the loan 
                                cancellation under this clause was made 
                                under such repayment assistance plan; 
                                and
                                    ``(III) who has repaid on such 
                                loans (pursuant to a repayment 
                                assistance plan under clause (i), a 
                                standard repayment plan under 
                                subsection (d)(6)(A)(i), or a 
                                combination of any such plan or any of 
                                the repayment plans listed in clause 
                                (ii), (iii), (iv), or (v) of paragraph 
                                (7)(B), or, in the case of a 
                                consolidation loan, pursuant to a 
                                repayment schedule described item 
                                (aa)(BB) of this subclause) an amount 
                                that is equal to--
                                            ``(aa)(AA) the total amount 
                                        of principal and interest that 
                                        the borrower would have repaid 
                                        under a standard repayment plan 
                                        under paragraph (1)(A) or 
                                        (6)(A)(i) of subsection (d), 
                                        based on a 10-year repayment 
                                        period, when the borrower 
                                        entered repayment on such 
                                        loans; or
                                            ``(BB) in the case of a 
                                        Federal Direct Consolidation 
                                        Loan, the total amount of 
                                        principal and interest that the 
                                        borrower would have repaid 
                                        under the repayment schedule 
                                        established for the loan under 
                                        section 428C(c)(2) on the date 
                                        on which such loan was made; 
                                        plus
                                            ``(bb) an amount equal to 
                                        the amount of any unpaid 
                                        interest that has accrued, but 
                                        was not included in the 
                                        calculation of the total amount 
                                        of principal and interest that 
                                        would have been repaid under 
                                        the standard repayment plan or 
                                        schedule described in item 
                                        (aa)--

                                                    ``(AA) during any 
                                                deferment period 
                                                described in clause (i) 
                                                or (ii) of subsection 
                                                (f)(2)(A); or

                                                    ``(BB) during any 
                                                forbearance period 
                                                while serving in a 
                                                medical or dental 
                                                internship or residency 
                                                program as described in 
                                                section 
                                                428(c)(3)(A)(i)(I); and

                            ``(vi) a borrower who is repaying a loan 
                        pursuant to a repayment assistance plan under 
                        clause (i) may elect, at any time, to terminate 
                        repayment pursuant to such plan and repay such 
                        loan under the standard repayment plan under 
                        subsection (d)(6)(A)(i).
                    ``(B) Repayment assistance for distressed 
                borrowers.--
                            ``(i) Interest subsidy.--For each month for 
                        which a borrower's aggregate monthly payment 
                        under this paragraph is insufficient to pay the 
                        total amount of interest that accrues on a loan 
                        for the month, the amount of interest accrued 
                        and not paid for the month shall be subtracted 
                        from the total amount of interest due on such 
                        loan for the month.
                            ``(ii) Principal subsidy.--For each month 
                        for which a borrower's aggregate monthly 
                        payment under this paragraph repays an amount 
                        due on an individual loan that is less than 
                        twice the total amount of interest that accrues 
                        on such loan for the month, the amount of the 
                        total principal due on such loan shall be 
                        reduced by an amount equal to half of the 
                        monthly payment under this paragraph on such 
                        loan for the month.
                    ``(C) Definitions.--In this paragraph:
                            ``(i) Adjusted gross income.--The term 
                        `adjusted gross income' has the meaning given 
                        the term in section 62 of the Internal Revenue 
                        Code of 1986.
                            ``(ii) Applicable monthly payment.--The 
                        term `applicable monthly payment' means, when 
                        used with respect to a borrower, the amount 
                        obtained by dividing by 12, 10 percent of the 
                        result obtained by calculating, on at least an 
                        annual basis, the amount by which--
                                    ``(I) the adjusted gross income of 
                                the borrower or, if the borrower is 
                                married and files a Federal income tax 
                                return jointly with or separately from 
                                the borrower's spouse, the adjusted 
                                gross income of the borrower and the 
                                borrower's spouse; exceeds
                                    ``(II) 150 percent of the poverty 
                                line applicable to the borrower's 
                                family size as determined under section 
                                673(2) of the Community Services Block 
                                Grant Act (42 U.S.C. 9902(2)).
                            ``(iii) Excepted consolidation loan.--The 
                        term `excepted Consolidation Loan' means a 
                        Federal Direct Consolidation Loan, if the 
                        proceeds of such loan were used to the 
                        discharge the liability on--
                                    ``(I) an excepted PLUS loan; or
                                    ``(II) a Federal Direct 
                                Consolidation loan, if the proceeds of 
                                such loan were used to discharge the 
                                liability on an excepted PLUS loan.
                            ``(iv) Excepted plus loan.--The term 
                        `excepted PLUS Loan' has the meaning given the 
                        term in section 493C.''.

SEC. 223. LOAN REHABILITATION.

    Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 
1078-6(a)(5)) is amended by striking ``one time'' and inserting ``two 
times''.

SEC. 224. INTEREST CAPITALIZATION.

    (a) Federal Plus Loans.--Section 428B(d)(2) of the Higher Education 
Act of 1965 (20 U.S.C. 1078-2(d)(2)) is amended to read as follows:
            ``(2) No capitalization of interest.--Interest on loans 
        made under this section for which payments of principal are 
        deferred pursuant to paragraph (1) shall be paid monthly or 
        quarterly, if agreed upon by the borrower and the lender.''.
    (b) Federal Consolidation Loans Deferrals.--Section 
428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (20 U.S.C. 
1078-3(b)(4)(C)(III)) is amended by striking ``or capitalized,''.
    (c) Loan Limits for Unsubsidized Stafford Loans.--Section 
428H(d)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-8(d)(5)) 
is amended by inserting ``before the date of enactment of the College 
Cost Reduction Act'' after ``Interest capitalized''.
    (d) Unsubsidized Stafford Loans for Middle Income Borrowers.--
Section 428H(e)(2) of the Higher Education Act of 1965 (20 U.S.C. 1078-
8(e)(2)) is amended--
            (1) in subparagraph (A), in the matter before clause (i), 
        by striking ``, if agreed upon by the borrower and the lender'' 
        and all that follows through clause (ii)(IV) and inserting ``be 
        paid monthly or quarterly, if agreed upon by the borrower and 
        the lender.'';
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).
    (e) Income Contingent Repayment.--Section 455(e)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(e)(5)) is amended by striking 
the last sentence and inserting ``No interest may be capitalized on 
such loan on or after the date of the enactment of the College Cost 
Reduction Act, and the Secretary shall promulgate regulations with 
respect to the treatment of accrued interest that is not capitalized''.
    (f) Effect of Deferment on Principal and Interest.--Section 
455(f)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(f)(1)(B)) is amended by striking ``capitalized or''.
    (g) Income-Based Repayment Program.--Section 493C(b)(3)(B) of the 
Higher Education Act of 1965 (20 U.S.C. 1098e(b)(3)(B)) is amended by 
inserting ``shall accrue but not'' before ``be capitalized''.

SEC. 225. ORIGINATION FEES.

    (a) Repeal of Origination Fees.--Subsection (c) of section 455 of 
the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to loans made under part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first 
disbursement of principal is made, or, in the case of a Federal Direct 
Consolidation Loan, the application is received, on or after July 1, 
2024.

             TITLE III--ACCOUNTABILITY AND STUDENT SUCCESS

                         PART A--ACCOUNTABILITY

                   Subpart 1--Department of Education

SEC. 301. AGREEMENTS WITH INSTITUTIONS.

    Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' after the 
                semicolon;
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) remit annual risk-sharing payments to the Secretary 
        in accordance with the requirements under subsection (d); 
        and''; and
            (2) by adding at the end the following new subsection:
    ``(d) Risk-Sharing Requirements.--
            ``(1) Annual risk-sharing payments required.--Beginning in 
        award year 2024-2025, each institution of higher education 
        participating in the direct student loan program under this 
        part shall, for qualifying student loans, remit to the 
        Secretary, at such time as the Secretary may specify, an annual 
        risk-sharing payment for each student cohort of the 
        institution, based on the non-repayment balance of such cohort 
        and calculated in accordance with paragraph (3).
            ``(2) Student cohorts.--
                    ``(A) Cohorts established.--For each institution of 
                higher education, the Secretary shall establish student 
                cohorts, beginning with award year 2023-2024, as 
                follows:
                            ``(i) Completing student cohort.--For each 
                        program of study at such institution, a student 
                        cohort comprised of all students who received 
                        Federal financial assistance under this title 
                        and who completed such program during such 
                        award year.
                            ``(ii) Undergraduate non-completing student 
                        cohort.--For such institution, a student cohort 
                        comprised of all students who received Federal 
                        financial assistance under this title, who were 
                        enrolled in the institution during the previous 
                        award year in a program of study leading to an 
                        undergraduate credential, and who at the time 
                        the cohort is established--
                                    ``(I) have not completed such 
                                program of study; and
                                    ``(II) are not enrolled at the 
                                institution in any program of study 
                                leading to an undergraduate credential.
                            ``(iii) Graduate non-completing student 
                        cohort.--For each program of study leading to a 
                        graduate credential at such institution, a 
                        student cohort comprised of all students who 
                        received Federal financial assistance under 
                        this title, who were enrolled in such program 
                        during the previous award year, and who at the 
                        time the cohort is established--
                                    ``(I) have not completed such 
                                program of study; and
                                    ``(II) are not enrolled in such 
                                program.
                    ``(B) Qualifying student loan.--For the purposes of 
                this subsection, the term `qualifying student loan' 
                means a Federal Direct loan, including a Federal Direct 
                Consolidation loan, made under this part that--
                            ``(i) was made to a student included in a 
                        student cohort of an institution; and
                            ``(ii) except in the case of a loan 
                        described in clause (i) or (ii) of subparagraph 
                        (C), is not included in any other student 
                        cohort of any institution of higher education.
                    ``(C) Special circumstances.--
                            ``(i) Multiple credentials.--In the case of 
                        a student who completes two or more programs of 
                        study during the same award year, each 
                        qualifying student loan of the student shall be 
                        included in the student cohort for each of such 
                        program of study for such award year.
                            ``(ii) Treatment of certain consolidation 
                        loans.--A Federal Direct Consolidation loan 
                        made under this title shall not be considered a 
                        qualifying student loan for a student cohort 
                        for an award year if all of the loans included 
                        in such consolidation loan are attributable to 
                        another student cohort.
                            ``(iii) Consolidation after inclusion in a 
                        student cohort.--If a qualifying student loan 
                        is consolidated into a consolidation loan under 
                        this title after such qualifying student loan 
                        has been included in a student cohort, the 
                        percentage of the consolidation loan that was 
                        attributable to such student cohort at the time 
                        of consolidation shall remain attributable to 
                        the student cohort for the life of the 
                        consolidation loan.
            ``(3) Calculation of risk-sharing payments.--
                    ``(A) Risk-sharing payment formula.--For each 
                student cohort of an institution of higher education 
                established under this subsection, the annual risk-
                sharing payment for such cohort shall be equal to--
                            ``(i) the risk-sharing percentage 
                        determined for the cohort in accordance with 
                        subparagraph (B); multiplied by
                            ``(ii) the non-repayment balance for the 
                        cohort for the award year, determined in 
                        accordance with subparagraph (C).
                    ``(B) Risk-sharing percentage.--The risk-sharing 
                percentage of a student cohort of an institution shall 
                be determined by the Secretary when the cohort is 
                established, shall remain constant for the life of the 
                student cohort, and shall be determined as follows:
                            ``(i) Completing student cohorts.--The 
                        risk-sharing percentage of a completing student 
                        cohort shall be equal to the percentage 
                        determined by--
                                    ``(I) subtracting from one the 
                                quotient of--
                                            ``(aa) the median value-
                                        added earnings (as defined in 
                                        section 103) of students who 
                                        completed such program of study 
                                        in the most recent award year 
                                        for which data is available, as 
                                        reported on the College 
                                        Scorecard at the time the 
                                        cohort was established; divided 
                                        by
                                            ``(bb) the median total 
                                        price charged to students 
                                        included in such cohort; and
                                    ``(II) multiplying the difference 
                                determined under subclause (I) by 100.
                            ``(ii) Special circumstances for completing 
                        student cohorts.--
                                    ``(I) High-risk cohorts.--
                                Notwithstanding clause (i), if the 
                                median value-added earnings of a 
                                completing student cohort under clause 
                                (i)(I)(aa) is negative, the risk-
                                sharing percentage of the student 
                                cohort shall be 100 percent.
                                    ``(II) Low-risk cohorts.--
                                Notwithstanding clause (i), if the 
                                median value-added earnings of a 
                                completing student cohort under clause 
                                (i)(I)(aa) exceeds the median total 
                                price of such cohort under clause 
                                (i)(I)(bb), the risk-sharing percentage 
                                of the student cohort shall be 0 
                                percent.
                            ``(iii) Non-completing student cohorts.--
                        The risk-sharing percentage of a non-completing 
                        student cohort shall be determined based on the 
                        most recent data available in the award year in 
                        which the cohort is established, and--
                                    ``(I) for an undergraduate non-
                                completing student cohort, shall be 
                                equal to the percentage of 
                                undergraduate students who received 
                                Federal financial assistance under this 
                                title at such institution who--
                                            ``(aa) did not complete an 
                                        undergraduate program of study 
                                        at the institution within 150 
                                        percent of the program length 
                                        of such program; or
                                            ``(bb) only in the case of 
                                        a two-year institution, did 
                                        not, within 6 years after first 
                                        enrolling at the two-year 
                                        institution, complete a program 
                                        of study at a four-year 
                                        institution for which a 
                                        bachelor's degree (or 
                                        substantially similar 
                                        credential) is awarded; and
                                    ``(II) for a graduate non-
                                completing student cohort, shall be 
                                equal to the percentage of students who 
                                received Federal financial assistance 
                                under this title at the institution for 
                                the applicable graduate program of 
                                study and who did not complete such 
                                program of study within 150 percent of 
                                the program length.
                    ``(C) Non-repayment loan balance.--
                            ``(i) In general.--For each award year, the 
                        Secretary shall determine the non-repayment 
                        loan balance for such award year for each 
                        student cohort of an institution of higher 
                        education by calculating the sum of--
                                    ``(I) for loans in such cohort in 
                                repayment status that are being repaid 
                                under a standard 10-year repayment plan 
                                under section 455(d)(1), the difference 
                                between the total amount of payments 
                                due from all borrowers on such loans 
                                during such year, as required under 
                                section 455(d)(1)(A), and the total 
                                amount of payments made by all such 
                                borrowers on such loans during such 
                                year; plus
                                    ``(II) for loans in such cohort in 
                                repayment status that are being repaid 
                                under the repayment assistance plan 
                                under section 455(e)(9)--
                                            ``(aa) the difference 
                                        between the total amount of 
                                        payments due from all borrowers 
                                        on such loans during such year, 
                                        as required under section 
                                        455(e)(9), and the total amount 
                                        of payments made by all such 
                                        borrowers on such loans during 
                                        such year; plus
                                            ``(bb) the total amount of 
                                        repayment assistance for such 
                                        loans under such section 
                                        455(e)(9) during such year, 
                                        including the unpaid principal 
                                        reduced, and interest 
                                        subtracted, by the Secretary.
                            ``(ii) Special circumstances.--For the 
                        purpose of calculating the non-repayment loan 
                        balance of student cohorts under this 
                        paragraph, the Secretary shall--
                                    ``(I) for each qualifying student 
                                loan in a student cohort that is 
                                included in another student cohort 
                                because the student who borrowed such 
                                loan completed two or more programs of 
                                study during the same award year, the 
                                total amount of repayment assistance 
                                and amounts due but not paid for such 
                                qualifying student loan shall be 
                                divided equally among each of the 
                                student cohorts in which such loan is 
                                included; and
                                    ``(II) for each consolidation loan 
                                in a student cohort--
                                            ``(aa) determine the 
                                        percentage of the outstanding 
                                        principal balance of the 
                                        consolidation loan attributable 
                                        to such student cohort--

                                                    ``(AA) at the time 
                                                of that loan was 
                                                included in such 
                                                cohort, in the case of 
                                                a loan consolidated 
                                                before inclusion in 
                                                such cohort; or

                                                    ``(BB) at the time 
                                                of consolidation, in 
                                                the case of a loan 
                                                consolidated after 
                                                inclusion in such 
                                                cohort; and

                                            ``(bb) include in the 
                                        calculations under clause (i) 
                                        for such student cohort only 
                                        the percentage of the total 
                                        amount of repayment assistance 
                                        and amounts due but not paid 
                                        for the consolidation loan for 
                                        such year that is equal to the 
                                        percentage of the consolidation 
                                        loan determined under item 
                                        (aa).
                    ``(D) Total price.--With respect to a student who 
                received Federal financial assistance under this title 
                and who completes a program of study, the term `total 
                price' means the total amount, before Federal financial 
                assistance under this title was applied, a student was 
                required to pay to complete the program of study. A 
                student's total price shall be calculated by the 
                Secretary as the difference between--
                            ``(i) the total amount of tuition and fees 
                        (including the required costs described in 
                        section 484(b)(3)(A)(i)(I)) that were charged 
                        to such student before the application of any 
                        Federal financial assistance provided under 
                        this title; minus
                            ``(ii) the total amount of grants and 
                        scholarships described in section 480(i)awarded 
                        to such student from non-Federal sources for 
                        such program of study.
            ``(4) Notification and remittance.--Beginning with the 
        first award year for which risk-sharing payments are required 
        under this subsection, and for each succeeding award year, the 
        Secretary shall--
                    ``(A) notify each institution of higher education 
                of the amounts and due dates of each annual risk-
                sharing payment calculated under paragraph (3) for each 
                student cohort of the institution within 30 days of 
                calculating such amounts; and
                    ``(B) require the institution to remit such 
                payments within 90 days of such notification.
            ``(5) Penalty for late payments.--
                    ``(A) Three-month delinquency.--If an institution 
                fails to remit to the Secretary a risk-sharing payment 
                for a student cohort as required under this subsection 
                within 90 days of receiving notification from the 
                Secretary in accordance with paragraph (4), the 
                institution shall pay to the Secretary, in addition to 
                such risk-sharing payment, interest on such payment, at 
                a rate that is the average rate applicable to the loans 
                in such student cohort.
                    ``(B) Twelve-month delinquency.--If an institution 
                fails to remit to the Secretary a risk-sharing payment 
                for a student cohort as required under this subsection, 
                plus interest owed in under subparagraph (A), within 12 
                months of receiving notification from the Secretary in 
                accordance with paragraph (4), the institution shall be 
                ineligible to make direct loans to any student enrolled 
                in the program of study for which the institution has 
                failed to make the risk-sharing payments until such 
                payment is made.
                    ``(C) Eighteen-month delinquency.--If an 
                institution fails to remit to the Secretary a risk-
                sharing payment for a student cohort as required under 
                this subsection, plus interest owed under subparagraph 
                (A), within 18 months of receiving notification from 
                the Secretary in accordance with paragraph (4), the 
                institution shall be ineligible to make direct loans or 
                award Federal Pell grants under section 401 to any 
                student enrolled in the institution until such payment 
                is made.
                    ``(D) Two-year delinquency.--If an institution 
                fails to remit to the Secretary a risk-sharing payment 
                for a student cohort as required under this subsection, 
                plus interest owed under subparagraph (A), within 2 
                years of receiving notification from the Secretary in 
                accordance with paragraph (4), the institution shall be 
                ineligible to participate in any program under this 
                title for a period of not less than 10 years.
            ``(6) Relief for voluntary cessation of federal direct 
        loans for a program of study.--The Secretary shall, upon the 
        request of an institution that voluntarily ceases to make 
        Federal direct loans to students enrolled in a specific program 
        of study, reduce the amount of the annual risk-sharing payment 
        owed by the institution for each student cohort associated with 
        such program by 50 percent if the institution assures the 
        Secretary that the institution will not make Federal direct 
        loans to any student enrolled in such program of study (or any 
        substantially similar program of study) for a period of not 
        less than 10 award years, beginning with the first award year 
        that begins after the date on which the Secretary reduces such 
        risk-sharing payment.
            ``(7) Reservation of funds for promise grants.--
        Notwithstanding any other provision of law, the Secretary shall 
        reserve the funds remitted to the Secretary as risk-sharing 
        payments in accordance with this subsection, and such funds 
        shall be made available to the Secretary only for the purpose 
        of awarding PROMISE grants in accordance with subpart 4 of part 
        A of this title.''.

SEC. 302. REGULATORY RELIEF.

    (a) 90/10.--
            (1) Regulation repealed.--Section 668.28 of title 34, Code 
        of Federal Regulations (relating to the 90/10 rule), as added 
        or amended by the final regulations published by the Department 
        of Education in the Federal Register on October 28, 2022 (87 
        Fed. Reg. 65426 et seq.), is repealed and will have no force or 
        effect.
            (2) Amendments.--Section 487 of the Higher Education Act of 
        1965 (20 U.S.C. 1094) is amended--
                    (A) in subsection (a), by striking paragraph (24);
                    (B) by striking subsection (d); and
                    (C) by redesignating subsections (e) through (j) as 
                subsections (d) through (i), respectively.
    (b) Financial Value Transparency and Gainful Employment.--
            (1) Regulation repealed.--Sections 600.10, 600.21, 668.2, 
        668.13, 668.43, 668.91, 668.402 through 668.409 (excluding 
        section 668.408), and 668.601 through 668.606 of title 34, Code 
        of Federal Regulations (relating to financial value 
        transparency and gainful employment), as added or amended by 
        the final regulations published by the Department of Education 
        in the Federal Register on October 10, 2023 (88 FR 70004 et 
        seq.), are repealed and will have no force or effect.
            (2) Prohibition.--The Secretary of Education shall not, on 
        or after the date of enactment of this Act, promulgate or 
        enforce any regulation or rule with respect to the definition 
        or application of the term ``gainful employment'' for any 
        purpose under the Higher Education Act of 1965 (20 U.S.C. 1001 
        et seq.).
    (c) Changes in Ownership.--
            (1) Regulation repealed.--Sections 600.2, 600.4, 600.20, 
        600.21, and 600.31 of title 34, Code of Federal Regulations 
        (relating to changes in ownership), as added or amended by the 
        final regulations published by the Department of Education in 
        the Federal Register on October 28, 2022 (87 Fed. Reg. 65426 et 
        seq.), are repealed and will have no force or effect.
            (2) Amendments.--Section 498(i) of the Higher Education Act 
        of 1965 (20 U.S.C. 1099c(i)) is amended--
                    (A) in the subsection heading, by inserting ``and 
                Proposed Changes of Ownership'' after ``Ownership'';
                    (B) in paragraph (1)--
                            (i) by striking ``(1) An eligible 
                        institution'', and inserting the following: 
                        ``(1)(A) An eligible institution'';
                            (ii) by striking ``the requirements of 
                        section 102 (other than the requirements in 
                        subsections (b)(5) and (c)(3))'' and inserting 
                        ``the applicable requirements of section 102 or 
                        103(13)''; and
                            (iii) by adding at the end the following:
                    ``(B)(i) Prior to a change in ownership resulting 
                in a change of control, an institution may seek a 
                pretransaction determination about whether the 
                institution will meet the applicable requirements of 
                section 102 or 103(13) and this section after such 
                proposed change in ownership by submitting to the 
                Secretary a materially complete pretransaction review 
                application.
                    ``(ii) In reviewing applications submitted under 
                clause (i), the Secretary shall only provide a 
                comprehensive review of each such application, and may 
                not provide an abbreviated or partial review.
                    ``(iii) If an institution submits a materially 
                complete pretransaction review application at least 90 
                days prior to the transaction and the Secretary 
                approves the application, the subsequent change in 
                ownership application shall also be approved and the 
                institution shall be certified as meeting the 
                requirements for such transaction, provided that the 
                institution--
                            ``(I) complies with the applicable terms of 
                        this section; and
                            ``(II) the transaction resulting in a 
                        change of control does not differ materially in 
                        its terms from the transaction proposed in the 
                        pretransaction review application.'';
                    (C) in paragraph (2)--
                            (i) in subparagraph (E), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (F), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding the following at the end:
            ``(G) in the case of a proprietary institution of higher 
        education, a conversion to a public or other nonprofit 
        institution of higher education.'';
                    (D) by adding at the end the following:
    ``(5)(A) Subject to subparagraph (B), when any institution submits 
an application for a change in ownership resulting in a change in 
control under this section or submits a pretransaction review 
application under paragraph (1)(B) (other than in the case of a 
conversion transaction), the institution shall be required to pay to 
the Secretary an administrative fee that shall--
            ``(i) be in an amount equal to 0.15 percent of the total 
        institutional revenue derived from this title by such 
        institution for the most fiscal year for which data is 
        available; and
            ``(ii) be used exclusively for expenses related to the 
        processing of such application, and be available to the 
        Secretary without further appropriation, exclusively for 
        expenses related to the processing of such approval or 
        application.
    ``(B) In the case of a proprietary institution submitting an 
application for conversion, or a pretransaction review application for 
conversion, the institution shall be required to pay to the Secretary 
an administrative fee that shall--
            ``(i) be in an amount equal to 0.30 percent of the total 
        institutional revenue derived from this title by such 
        institution for the most fiscal year for which data is 
        available; and
            ``(ii) be used exclusively for expenses related to the 
        processing of such application, and of which--
                    ``(I) 50 percent shall be available to the 
                Secretary without further appropriation, exclusively 
                for expenses related to the processing of such 
                application; and
                    ``(II) 50 percent shall be remitted by the 
                Secretary to the Commissioner of the Internal Revenue, 
                and shall be available, without further appropriation, 
                to the Commissioner of Internal Revenue exclusively for 
                purposes of determining whether the institution seeking 
                such conversion or pretransaction review is an 
                institution exempt from tax and is otherwise in 
                compliance with applicable requirements of the Internal 
                Revenue Code of 1986.
    ``(C) An institution that pays a fee under subparagraph (A) or (B) 
for a pretransaction application with respect to a proposed transaction 
shall not be required to pay another fee under such subparagraph for a 
change in ownership application with respect to such transaction.
    ``(D) In no case may any fee remitted under subparagraph (A) or (B) 
exceed $120,000 for any transaction (or pretransaction) application, 
nor may the Secretary require an institution that has paid a fee under 
subparagraph (B) to pay an additional fee under subparagraph (A).
    ``(6)(A) The Secretary shall approve or deny a materially complete 
application (including pretransaction reviews and conversion 
applications) submitted under this section as soon as practicable and 
not later than the 90-day period beginning on the date of receipt of 
such an application, except that in a case in which the Secretary 
determines, on a nondelegable basis, that good cause exists to not make 
the determination during such 90-day period, the Secretary shall notify 
the institution in writing detailing the reasons for a good cause 
extension.
    ``(B) If the Secretary fails to approve or deny a materially 
complete application during the period described in subparagraph (A) 
and does not find good cause for extension, the materially complete 
application shall be deemed approved.
    ``(C) In no case may the Secretary grant a good cause extension 
under this section to an institution for more than one month at a time, 
or for a total of more than more than 12 months.
    ``(D) To ensure timely submission of all relevant documentation, 
the Secretary may deny an application if an institution does not make a 
good faith effort to submit to the Secretary, in a timely manner--
            ``(i) all relevant documentation; or
            ``(ii) a materially complete application.
    ``(E)(i) Upon approving or denying an application under this 
paragraph, the Secretary shall publish in the Federal Register the 
reasoning for such approval or denial, including--
            ``(I) a copy of the approval or denial letter sent to the 
        institution; and
            ``(II) any analysis regarding how the Secretary determined 
        under paragraph 7(A)(iii) that a director of the institution 
        was an interested or disinterested party to the transaction.
    ``(ii) The Secretary shall not publish under clause (i) any 
information that is otherwise exempt from disclosure under section 552 
of title 5, United States Code (relating to the Freedom of Information 
Act), including trade secrets and commercial or financial information 
that is privileged or confidential.
    ``(7)(A) In the case of a proprietary institution that subsequent 
to the transaction would be owned and operated by an entity (in this 
paragraph referred to as the `buyer') seeking to be recognized as a 
public or other nonprofit institution, the buyer shall meet the 
definition of a nonprofit institution under section 103(13) if--
            ``(i) the buyer pays no more than fair market value for any 
        assets of the proprietary institution;
            ``(ii) the buyer pays no more than fair market value for 
        any service or lease contracts, including such service and 
        lease contracts provided by the entity selling the proprietary 
        institution; and
            ``(iii) to prevent self-dealing in the case where one or 
        more individuals with a substantial ownership or controlling 
        interests in the proprietary institution will also have 
        substantial or controlling interests in the institution seeking 
        to be recognized as a public or other nonprofit institution 
        (meaning that one or more individuals are on both sides of the 
        transaction), the change of control transaction, and any 
        substantial asset acquisition, service, or lease agreements 
        with the proprietary institution shall be approved by a 
        disinterested committee of directors of the entity that seeks 
        to be recognized as a public or other nonprofit institution.
    ``(B) For the purposes of this paragraph, parties to the 
transaction are entitled to a rebuttable presumption that the assets, 
lease contracts, and service contracts that are part of the transaction 
are purchased at fair market value if--
            ``(i) the acquiring entity pays no more than fair market 
        value for such assets, lease contracts, or service contracts; 
        and
            ``(ii) the value of the assets, lease contracts, or service 
        contracts are evaluated by at least one independent third-party 
        entity hired by parties on both sides of the transaction.
    ``(8)(A) An institution that has been approved for conversion by 
the Secretary shall be subject to a monitoring period for a 5-year 
period beginning on the day after the date of such approval. In 
conducting the monitoring of the institution under this paragraph, the 
Secretary--
            ``(i) shall only conduct monitoring to ensure that the 
        institution is in compliance with the requirements of section 
        103(13) and paragraph (7) of this subsection; and
            ``(ii) may require the institution to submit regular 
        reports or conduct audits of such institution relating to such 
        compliance.
    ``(B) Each institution that is subject to the monitoring period 
under this paragraph shall remit an annual fee to the Secretary--
            ``(i) in an amount equal to 0.15 percent of the total 
        revenue derived from this title by such institution for the 
        most recent fiscal year for which data is available; and
            ``(ii) that shall be exclusively for expenses related to 
        monitoring of the institution for the period described in 
        subparagraph (A)--
                    ``(I) of which 50 percent shall be used by the 
                Secretary, without further appropriation, exclusively 
                for expenses related to monitoring of the institution 
                during such period; and
                    ``(II) of which 50 percent shall be remitted by the 
                Secretary to the Commissioner of Internal Revenue, to 
                be available to such Commissioner, without further 
                appropriation, exclusively for monitoring compliance 
                with the Internal Revenue Code of such institution 
                during such period.
    ``(C) An institution may not be subject to an annual fee under 
subparagraph (B) for monitoring related to a conversion that exceeds 
$60,000.
    ``(D) If the Secretary determines that an institution should be 
subject to the monitoring under this paragraph beyond the 5-year period 
described in subparagraph (A), the Secretary shall provide the reasons 
justifying an extension in writing to the institution (and in the 
Federal Register) at least 30 days before the expiration of such 
period.
    ``(E) Any institution that is subject to monitoring under this 
paragraph may seek a waiver to be exempt from such monitoring 
(including the annual fee under subparagraph (B)) on an annual basis 
for any year during the monitoring period and the Secretary shall grant 
such waiver if there is no ongoing contractual or financial 
relationship between the institution and the former entity or 
individuals that previously owned the institution. The Secretary may 
grant a waiver for more than 1 year in the case where the entity that 
formerly owned the proprietary institution has closed or no longer 
exists and the Secretary determines the institution is not at risk of 
violating the requirements of section 103(13) or paragraph (7) of this 
subsection.
    ``(9) Any institution that submits an application for conversion 
shall not promote or market itself, in any manner, as a public or other 
nonprofit institution of higher education unless--
            ``(A) the Secretary has provided final approval of the 
        conversion of the institution to a public or other nonprofit 
        institution of higher education under this section;
            ``(B) an accrediting agency or association recognized by 
        the Secretary pursuant to section 496 has approved such public 
        or nonprofit status of the institution;
            ``(C) the State has given final approval to the institution 
        as a public or nonprofit institution of higher education, as 
        applicable; and
            ``(D) in the case of an institution seeking nonprofit 
        status, the Commissioner of Internal Revenue has approved the 
        institution as tax exempt pursuant to the Internal Revenue Code 
        of 1986.
    ``(10) Not later than 270 days after the date of enactment of the 
College Cost Reduction Act, and periodically thereafter, the Secretary 
shall publish (and update as necessary) in the Federal Register--
            ``(A) descriptions of the documents and materials the 
        Secretary expects or requires institutions of higher education 
        to submit (including any standardized forms) as part of any 
        pretransaction application or change in ownership application 
        under this section, including a description of what the 
        Secretary considers to be a materially complete application; 
        and
            ``(B) after at least a 30-day notice and comment period, 
        responses to any public comments received with respect to such 
        descriptions or updates to such descriptions.
    ``(11) In a case in which the Secretary requests a document under 
this section as part of a pretransaction or change in ownership 
application that is not described in the Federal Register under 
paragraph (10), the Secretary shall--
            ``(A) substantiate, in writing to the institution, the 
        reasons why the Secretary is requesting such documents; and
            ``(B) publish such reasons in the Federal Register, 
        including whether the Secretary may request other institutions 
        that submit applications under this section to produce similar 
        documentation.
    ``(12)(A) Not later than 18 months after the date of enactment of 
the College Cost Reduction Act, and annually thereafter, the Secretary 
shall submit a report to authorizing committees, and post such report 
on a publicly available website regarding implementation of the 
amendments made to this section by such Act, including the following 
information:
            ``(i) The mean and median length of time taken by the 
        Secretary to review applications under this section during the 
        preceding 12-month period.
            ``(ii) The number of applications approved or denied during 
        the preceding 12-month period.
            ``(iii) For any application not processed during the 90-day 
        period beginning on the date of receipt of the application for 
        which the Secretary found good cause under paragraph (6)(A) to 
        extend the deadline in which the application shall be 
        processed, a copy of the letter sent to the institution 
        explaining why the Secretary believed good cause existed for 
        such extension.
            ``(iv) For any application not processed during such 90-day 
        period, which was deemed to be automatically approved by the 
        requirements of this section under paragraph (6)(B), the name 
        of each institution involved and an explanation for why the 
        application was not processed in a timely manner.
            ``(v) Any legislative suggestions the Secretary may have to 
        improve the application or monitoring process under this 
        section.
    ``(B) If the Secretary fails to submit a report under this 
paragraph by not later than 90 days after the deadline for such 
submission under subparagraph (A), the Secretary may not, for the 12-
month period following such failure, spend the fees remitted by 
institutions under this section or remit such fees to the Commissioner 
unless Congress provides for such use by further appropriation.
    ``(13) For the purposes of this subsection, the term `conversion' 
means any transaction under which--
            ``(A) a proprietary institution is reorganized and seeks 
        recognition as a public or other nonprofit institution; or
            ``(B) the control of a proprietary institution is 
        transferred as a result of a sale, donation, or other method to 
        an entity that seeks certification under this section as a 
        public or other nonprofit institution.''.
            (3) Application.--The amendments made by this section shall 
        be apply with respect to applications submitted for change of 
        control or conversion submitted on or after January 1, 2023.
            (4) Report.-- Not later than 5 years after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate, a report on the implementation of 
        the amendments made by this subsection, including 
        recommendations to improve--
                    (A) the application process under section 498(i) of 
                the Higher Education Act of 1965 (20 U.S.C. 1099c(i)), 
                as amended by paragraph (2), for institutions of higher 
                education seeking a change in ownership resulting in a 
                change in control; or
                    (B) the monitoring process under such section for 
                institutions of higher education that have recently 
                converted from being recognized as a proprietary 
                institution to a public or other nonprofit institution.
    (d) Financial Responsibility.--
            (1) Regulation repealed.--Sections 668.15, 668.23, 668.171, 
        and 668.174 through 668.177 of title 34, Code of Federal 
        Regulations (relating to financial responsibility), as added or 
        amended by the final regulations published by the Department of 
        Education in the Federal Register on October 31, 2023 (87 Fed. 
        Reg. 74568 et seq.), are repealed and will have no force or 
        effect.
            (2) Amendments.--Section 498(c) of the Higher Education Act 
        of 1965 (20 6 U.S.C. 1099c(c)) is amended--
                    (A) by redesignating paragraphs (3), (4), (5), and 
                (6) as paragraphs (4), (5), (6), and (7), respectively;
                    (B) in paragraph (2)--
                            (i) by striking ``paragraph (1), if'' and 
                        inserting ``paragraph (1), the Secretary shall 
                        prescribe criteria regarding ratios that aid in 
                        the determination financial responsibility. 
                        Such ratios shall be first issued in draft form 
                        to the institution to allow for adequate 
                        review, consisting of an appeals process, by 
                        such institutions of higher education. If''; 
                        and
                            (ii) by striking ``prescribed by the 
                        Secretary regarding ratios'' and inserting 
                        ``prescribed by the Secretary regarding the 
                        final ratios'';
                    (C) by inserting after paragraph (2) the following:
    ``(3) Notwithstanding paragraph (2), the Secretary shall take into 
account an institution's current total financial circumstances, 
including any subsequent change in the institution's overall fiscal 
health based on the standards in paragraph (2), when making a 
determination of its ability to meet the standards herein required 
before any subsequent action is taken under paragraph (4). If an 
institution meets the standards in paragraph (2), the institution shall 
be seen as financially responsible.'';
                    (D) in subparagraph (C) of paragraph (4), as so 
                redesignated, by striking ``establishes to the 
                satisfaction of the Secretary, with'' and inserting 
                ``establishes, with'';
                    (E) in paragraph (5), as so redesignated--
                            (i) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end;
                            (ii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking subparagraph (C);
                    (F) in paragraph (6), as so redesignated, by 
                striking ``(3)(C)'' and inserting ``(4)(C)''; and
                    (G) by adding at the end the following new 
                paragraph:
    ``(8) Not later than 18 months after the date of enactment of the 
College Cost Reduction Act, the Secretary shall pursue a process to 
update the ratios regarding financial responsibility as identified in 
paragraph (2). The Secretary shall report the revised ratios to--
            ``(A) the Committee on Education and the Workforce of the 
        House of Representatives; and
            ``(B) the Committee on Health, Education, Labor, and 
        Pensions of the Senate.''.
    (e) Incentive Compensation; Third Party Servicer.--
            (1) Amendments.--Section 487(a)(20) (20 U.S.C. 1094(a)(20)) 
        is amended to read as follows:
            ``(20) The institution will not provide any commission, 
        bonus, or other incentive payment based directly or indirectly 
        on success in securing enrollments or financial aid to any 
        persons or entities engaged in any student recruiting or 
        admission activities, or in making decisions regarding the 
        award of student financial assistance, except that this 
        paragraph shall not apply--
                    ``(A) to the recruitment of foreign students 
                residing in foreign countries who are not eligible to 
                receive Federal student assistance; or
                    ``(B) to a third party where--
                            ``(i) the third party is providing the 
                        institution recruiting or admissions activities 
                        as part of a larger bundle of services not 
                        covered by this paragraph and which may include 
                        marketing or advertising activities that 
                        broadly disseminate or distribute widely 
                        available information;
                            ``(ii) the third party does not provide any 
                        commission, bonus, or other incentive-based 
                        payments to its employees or subcontractors who 
                        are providing services to the institution 
                        covered in this paragraph; and
                            ``(iii) the third party is not awarding or 
                        disbursing Federal financial aid awards.''.
            (2) Definition.--Section 481(c) (20 U.S.C. 1088(c)) is 
        amended to read as follows:
    ``(c) Third Party Servicer.--
            ``(1) For purposes of this title, the term `third party 
        servicer'--
                    ``(A) means any individual, any State, or any 
                private, for-profit or nonprofit organization, which 
                enters into a contract with--
                            ``(i) any eligible institution of higher 
                        education to administer, through either manual 
                        or automated processing, any aspect of such 
                        institution's student assistance programs under 
                        this title; or
                            ``(ii) any guaranty agency, or any eligible 
                        lender, to administer, through either manual or 
                        automated processing, any aspect of such 
                        guaranty agency's or lender's student loan 
                        programs under part B of this title, including 
                        originating, guaranteeing, monitoring, 
                        processing, servicing, or collecting loans; and
                    ``(B) does not include any individual, any State, 
                or any private, for-profit or nonprofit organization, 
                which conducts activities or interacts with prospective 
                or enrolled students for the purposes of--
                            ``(i) marketing or recruiting, such as 
                        soliciting potential enrollments through the 
                        dissemination of information and advertising;
                            ``(ii) assisting with the completion of 
                        applications for enrollment, such as screening 
                        pre-enrollment information and offering 
                        admission counseling;
                            ``(iii) administering ability-to-benefit 
                        tests or establishing any aspect of an eligible 
                        career pathway program;
                            ``(iv) conducting activities for the 
                        retention of students, such as monitoring 
                        academic engagement and conducting outreach to 
                        student regarding attendance; and
                            ``(v) providing instructional content, such 
                        as evaluating course completion, delivering 
                        mandatory tutoring, assessing student learning, 
                        including through electronic means, or 
                        developing curricula or course materials.
            ``(2) The Secretary shall not regulate on the definition of 
        a `third party servicer'.''.
    (f) Other Repeals.--The following regulations (including any 
supplement or revision to such regulations) are repealed and shall have 
no legal effect:
            (1) Closed school discharges.--Sections 674.33(g), 
        682.402(d), and 685.214 of title 34, Code of Federal 
        Regulations (relating to closed school discharges), as added or 
        amended by the final regulations published by the Department of 
        Education in the Federal Register on November 1, 2022 (87 Fed. 
        Reg. 65904 et seq.).
            (2) Borrower defense to repayment.--Section 685.401 of 
        title 34, Code of Federal Regulations (relating to borrower 
        defense to repayment), as added or amended by the final 
        regulations published by the Department of Education in the 
        Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et 
        seq.).
            (3) Pre-dispute arbitration.--Sections 668.41, 685.300, and 
        685.304 of title 34, Code of Federal Regulations (relating to 
        pre-dispute arbitration), as added or amended by the final 
        regulations published by the Department of Education in the 
        Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et 
        seq.).
            (4) False certification.--Sections 682.402(e), 685.215(c), 
        and 685.215(d) of title 34, Code of Federal Regulations 
        (relating to false certification), as added or amended by the 
        final regulations published by the Department of Education in 
        the Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et 
        seq.).
            (5) Administrative capability.--Sections 668.16 of title 
        34, Code of Federal Regulations (relating to administrative 
        capability), as added or amended by the final regulations 
        published by the Department of Education in the Federal 
        Register on October 31, 2023 (87 Fed. Reg. 74568 et seq.).
            (6) Certification procedures.--Sections 668.13, 668.14, and 
        668.43 of title 34, Code of Federal Regulations (relating to 
        certification procedures) as added or amended by the final 
        regulations published by the Department of Education in the 
        Federal Register on October 31, 2023 (87 Fed. Reg. 74568 et 
        seq.).
            (7) Ability to benefit.--Sections 668.2, 668.32, 668.156, 
        and 668.157 of title 34, Code of Federal Regulations (relating 
        to ability to benefit) as added or amended by the final 
        regulations published by the Department of Education in the 
        Federal Register on October 31, 2023 (87 Fed. Reg. 74568 et 
        seq.).
            (8) Personal liability.--The electronic announcement titled 
        ``Establishing Personal Liability Requirements for Financial 
        Losses Related to the Title IV Programs'' (GENERAL-23-11, 
        published on March 1, 2023).
    (g) Effect of Repeal.--Any regulations repealed by subsections (c) 
through (e) that were in effect on June 30, 2023, are restored and 
revived as if the repeal of such regulations under such subsections had 
not taken effect.
    (h) Prohibition.--The Secretary of Education may not implement any 
rule, regulation, policy, or executive action specified in this section 
(or a substantially similar rule, regulation, policy, or executive 
action) unless authority for such implementation is explicitly provided 
in an Act of Congress.
    (i) Program Review and Data.--Section 498A (20 U.S.C. 1099c-1) is 
amended by adding at the end the following:
    ``(f) Time Limit on Program Review Activities.--In conducting, 
responding to, and concluding program review activities, the Secretary 
shall--
            ``(1) provide to the institution the initial report finding 
        not later than 90 days after concluding an initial site visit;
            ``(2) upon each receipt of an institution's response during 
        a program review inquiry, respond in a substantive manner 
        within 90 days;
            ``(3) upon each receipt of an institution's written 
        response to a draft final program review report, provide the 
        final program review report and accompanying enforcement 
        actions, if any, within 90 days; and
            ``(4) conclude the entire program review process not later 
        than 2 years after the initiation of a program review, unless 
        the Secretary determines that such a review is sufficiently 
        complex and cannot reasonably be concluded before the 
        expiration of such 2-year period, in which case the Secretary 
        shall promptly notify the institution of the reasons for such 
        delay and provide an anticipated date for conclusion of the 
        review.''.

SEC. 303. LIMITATION ON AUTHORITY OF SECRETARY TO PROPOSE OR ISSUE 
              REGULATIONS AND EXECUTIVE ACTIONS.

    Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by inserting after section 492 the following:

``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR 
              ISSUE REGULATIONS AND EXECUTIVE ACTIONS.

    ``(a) Draft Regulations.--Beginning after the date of enactment of 
this section, a draft regulation implementing this title (as described 
in section 492(b)(1)) that is determined by the Secretary to be 
economically significant shall be subject to the following requirements 
(regardless of whether negotiated rulemaking occurs):
            ``(1) The Secretary shall determine whether the draft 
        regulation, if implemented, would result in an increase in a 
        subsidy cost.
            ``(2) If the Secretary determines under paragraph (1) that 
        the draft regulation would result in an increase in a subsidy 
        cost, then the Secretary may take no further action with 
        respect to such regulation.
    ``(b) Proposed or Final Regulations and Executive Actions.--
Beginning after the date of enactment of this section, the Secretary 
may not issue a proposed rule, final regulation, or executive action 
implementing this title if the Secretary determines that the rule, 
regulation, or executive action--
            ``(1) is economically significant; and
            ``(2) would result in an increase in a subsidy cost.
    ``(c) Relationship to Other Requirements.--The analyses required 
under subsections (a) and (b) shall be in addition to any other cost 
analysis required under law for a regulation implementing this title, 
including any cost analysis that may be required pursuant to Executive 
Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and 
review), Executive Order 13563 (76 Fed. Reg. 3821; relating to 
improving regulation and regulatory review), or any related or 
successor orders.
    ``(d) Definition.--In this section, the term `economically 
significant', when used with respect to a draft, proposed, or final 
regulation or executive action, means that the regulation or executive 
action is likely, as determined by the Secretary--
            ``(1) to have an annual effect on the economy of 
        $100,000,000 or more; or
            ``(2) adversely to affect in a material way the economy, a 
        sector of the economy, productivity, competition, jobs, the 
        environment, public health or safety, or State, local, or 
        tribal governments or communities.''.

SEC. 304. OFFICE OF FEDERAL STUDENT AID.

    (a) Federal Preemption.--Section 456 (20 U.S.C. 1087f) is amended 
by adding at the end the following:
    ``(c) Federal Preemption.--
            ``(1) In general.--Covered activities shall not be subject 
        to any law or other requirement of any State or political 
        subdivision of a State with respect to--
                    ``(A) disclosure requirements;
                    ``(B) requirements or restrictions on the content, 
                time, quantity, or frequency of communications with 
                borrowers, endorsers, or references with respect to 
                such loans; or
                    ``(C) any other requirement relating to the 
                servicing or collection of a loan made under this 
                title.
            ``(2) Covered activities defined.--In this subsection, the 
        term `covered activities' means any of the following 
        activities, as carried out by a qualified entity:
                    ``(A) Origination of a loan made under this title.
                    ``(B) Servicing of a loan made under this title.
                    ``(C) Collection of a loan made under this title.
                    ``(D) Any other activity related to the activities 
                described in subparagraphs (A) through (C).''.
    (b) Procurement Flexibility.--Section 142 (20 U.S.C. 1018a) is 
amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
    ``(l) Guidance to Student Loan Servicers.--
            ``(1) In general.--In notifying a student loan servicer of 
        a final contract modification (as such term is defined in 
        section 2.101 of title 48, Code of Federal Regulations) that 
        instructs such loan servicer to perform a function that is new 
        or different from a function such servicer performs pursuant to 
        an existing contract, the PBO shall, not later than 30 days 
        before such contract change takes effect, provide such 
        servicers with written guidance in the form of--
                    ``(A) a change order (as such term is defined in 
                section 2.101 of title 48, Code of Federal 
                Regulations);
                    ``(B) a dear colleague letter; or
                    ``(C) an electronic announcement.
            ``(2) Non-binding directives.--A student loan servicer that 
        is notified of a final contract modification described in 
        paragraph (1) and receives guidance in a form other than a form 
        described in paragraph (1) (including through emails or phone 
        calls) shall not be subject to such contract modification.''.

                         Subpart 2--Accreditors

SEC. 311. ACCREDITING AGENCY RECOGNITION.

    (a) Criteria Required.--Section 496(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1099b(a)) is amended--
            (1) in the matter preceding paragraph (1), in the first 
        sentence, by striking ``or training'' and inserting ``skills 
        development'';
            (2) by amending paragraph (1) to read as follows:
            ``(1) the accrediting agency or association (other than an 
        accrediting agency or association described in paragraph 
        (2)(D)) shall be a State or national agency or association and 
        shall demonstrate the ability to operate as an institutional or 
        programmatic accrediting agency or association within the State 
        or nationally, as appropriate;'';
            (3) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking 
                        ``principal''; and
                            (ii) in clause (ii), by striking ``its 
                        principal'' and inserting ``a''; and
                    (B) in subparagraph (C), by inserting ``or'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(D) is an entity (such as an industry-specific 
                quality assurance entity) that has been--
                            ``(i) determined by a State to be a 
                        reliable authority as to the quality of 
                        education or skills development offered in such 
                        State for the purposes of this Act; and
                            ``(ii) designated (in accordance with 
                        subsection (b)(1)) by such State as an 
                        accrediting agency or association with respect 
                        to such State for such purposes;'';
            (4) in paragraph (3)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) subparagraph (A), (C), or (D) of paragraph 
                (2), then such agency or association is--
                            ``(i) distinctly incorporated or organized; 
                        and
                            ``(ii) both administratively and 
                        financially separate from, and independent of, 
                        any related, associated, or affiliated trade 
                        association or membership organization, by 
                        ensuring that--
                                    ``(I) the members of the board or 
                                governing body of the accrediting 
                                agency or association are not elected 
                                or selected by the board or chief 
                                executive officer (or the 
                                representative of such board or 
                                officer) of any related, associated, or 
                                affiliated trade association or 
                                membership organization;
                                    ``(II) among the membership of the 
                                board or governing body of the 
                                accrediting agency or association--
                                            ``(aa) if such board or 
                                        body is comprised of 5 or fewer 
                                        members, there is a minimum of 
                                        one public member who 
                                        represents business and who is 
                                        not a member of any related, 
                                        associated, or affiliated trade 
                                        association or membership 
                                        organization; and
                                            ``(bb) if such board or 
                                        body is comprised of 6 or more 
                                        members, there is a minimum of 
                                        1 such public member for every 
                                        6 members;
                                    ``(III) guidelines are established 
                                for such members to avoid conflicts of 
                                interest, including specific guidelines 
                                to ensure that no such member is an 
                                employee of any institution accredited 
                                by the agency or association or has a 
                                financial interest in any such 
                                institution;
                                    ``(IV) dues to the accrediting 
                                agency or association are paid 
                                separately from any dues paid to any 
                                related, associated, or affiliated 
                                trade association or membership 
                                organization; and
                                    ``(V) the budget of the accrediting 
                                agency or association is developed, 
                                decided, and maintained by the 
                                accrediting agency or association 
                                without any review by, consultation 
                                with, or approval by any related, 
                                associated, or affiliated trade 
                                association or membership 
                                organization;'';
                    (B) by striking ``or'' at the end of subparagraph 
                (B); and
                    (C) by striking subparagraph (C);
            (5) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``(in the manner described 
                        in subparagraph (B))'' after ``religious 
                        missions''; and
                            (ii) by striking ``and'' at the end; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) such accrediting agency or association 
                consistently applies and enforces standards that 
                respect the stated religious mission of an institution 
                of higher education by--
                            ``(i) basing decisions regarding 
                        accreditation and preaccreditation on the 
                        standards of accreditation of such agency or 
                        association; and
                            ``(ii) not using as a negative factor the 
                        institution's religious mission based policies, 
                        decisions, and practices in the areas covered 
                        by subparagraphs (B), (C), (D), (E), and (F) of 
                        paragraph (5), except that the agency or 
                        association may require that the institution's 
                        or a program of study's curricula include all 
                        core components required by the agency or 
                        association that are not inconsistent with the 
                        institution's religious mission; and
                    ``(C) such agency or association demonstrates the 
                ability to review, evaluate, and assess the quality of 
                any instruction delivery model or method such agency or 
                association has or seeks to include within its scope of 
                recognition, without giving preference to or 
                differentially treating a particular instruction 
                delivery model or method offered by an institution of 
                higher education or program, except that--
                            ``(i) in a case in which the instruction 
                        delivery model allows for the separation of the 
                        student from the instructor, the agency or 
                        association shall not be required to have 
                        separate standards, procedures, or policies for 
                        the evaluation of the quality of any 
                        instruction delivery model or method in order 
                        to meet the requirements of this subparagraph; 
                        and
                            ``(ii) in the case in which the instruction 
                        delivery model allows for the separation of the 
                        student from the instructor--
                                    ``(I) the agency or association 
                                requires the institution to have 
                                processes through which the institution 
                                establishes that the student who 
                                registers in a course or program is the 
                                same student who participates in the 
                                program (including, to the extent 
                                practicable, the testing or other 
                                assessments required under the 
                                program), completes the program, and 
                                receives the academic credit; and
                                    ``(II) the agency or association 
                                requires that any process used by an 
                                institution to comply with the 
                                requirement under clause (I) does not 
                                infringe upon student privacy and is 
                                implemented in a manner that is 
                                minimally burdensome to the student;''; 
                                and
            (6) in paragraph (5)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) success with respect to student achievement 
                outcomes in relation to the institution's mission and 
                to the programs the institution offers, or the mission 
                of a specific degree, certificate, or credential 
                program, which may include different standards for 
                different institutions or programs, and which shall 
                include--
                            ``(i) standards for consideration of the 
                        median total price charged to students for a 
                        program of study in relation to the median 
                        value-added earnings of students who completed 
                        such program;
                            ``(ii) standards for consideration of 
                        learning outcomes measures (such as competency 
                        attainment and licensing examination passage 
                        rates);
                            ``(iii) standards for consideration of 
                        labor market outcomes measures (such as 
                        employer satisfaction surveys, employability 
                        measures, earnings gains, employment rates, or 
                        other similar approaches); and
                            ``(iv) standards for consideration of 
                        student success outcomes measures (such as 
                        completion rates, retention rates, and loan 
                        repayment rates);'';
                    (B) by amending subparagraph (I) to read as 
                follows:
                    ``(I) record of student complaints received by, or 
                available to, the agency or association, and a process 
                for resolving complaints received by the institution; 
                and''; and
                    (C) in subparagraph (J), by inserting ``and the 
                median total price charged to students for a program of 
                study in relation to the median value-added earnings of 
                students who completed such program provided by the 
                Secretary'' after ``student loan default rate data 
                provided by the Secretary''.
    (b) Secretarial Requirements and Authority.--Subsection (b) of 
section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b) is 
amended to read as follows:
    ``(b) Secretarial Requirements and Authority.--
            ``(1) State designated accrediting agency.--
                    ``(A) Approval of state plans.--The Secretary 
                shall--
                            ``(i) approve a State's designation of an 
                        entity as an accrediting agency or association 
                        for the purposes described in subsection 
                        (a)(2)(D) for a 5-year period, beginning not 
                        later than 30 days after receipt of the plan 
                        from such State with respect to such 
                        designation, if such plan includes each of the 
                        elements listed in subparagraph (B);
                            ``(ii) submit to the State and the 
                        authorizing committees, and make publicly 
                        available the Secretary's response to the State 
                        with respect to such plan, including whether 
                        the plan includes each of the elements listed 
                        in subparagraph (B); and
                            ``(iii) if a State's designation of an 
                        entity as an accrediting agency or association 
                        is approved pursuant to this subparagraph, 
                        publish in the Federal Register with a 30-day 
                        public comment period--
                                    ``(I) the plan submitted by such 
                                State with respect to such designation; 
                                and
                                    ``(II) the Secretary's response to 
                                such plan.
                    ``(B) Required plan elements.--The required 
                elements of a State plan submitted under subparagraph 
                (A) with respect to the designation of an entity as an 
                accrediting agency or association are as follows:
                            ``(i) A description of the process the 
                        State used to select the entity for such 
                        designation.
                            ``(ii) A justification of the State's 
                        decision to select the entity for such 
                        designation.
                            ``(iii) A description of any requirements 
                        (in addition to the requirements of this 
                        section), that the State required the entity to 
                        comply with as a condition of receiving and 
                        maintaining such designation.
                            ``(iv) A copy of the standards, policies, 
                        and procedures of the entity that the State 
                        considered in selecting the entity for such 
                        designation.
                            ``(v) The State's assessment of how the 
                        standards for accreditation of the entity will 
                        be effective in meeting the requirements of 
                        subsection (a)(5).
                            ``(vi) Evidence that at least one other 
                        State has determined that such entity is a 
                        reliable authority as to the quality of 
                        education offered for the purposes of this Act.
                            ``(vii) An assurance that the State will 
                        comply with the monitoring requirements 
                        described in subparagraph (C).
                    ``(C) State monitoring.--
                            ``(i) In general.--A State that has 
                        designated an entity as an accrediting agency 
                        or association for the purposes described in 
                        subsection (a)(2)(D) shall submit to the 
                        Secretary, and to the State authorizing entity, 
                        as appropriate, a report at the end of the 5-
                        year period for which the entity has received 
                        such designation, which shall include, with 
                        respect to each postsecondary education program 
                        or institution that has been accredited by such 
                        entity during such period, and disaggregated by 
                        type of credential, certification, or degree--
                                    ``(I) the number and percentage of 
                                students who have successfully obtained 
                                a postsecondary education credential, 
                                certification, or degree offered by 
                                such program or institution; and
                                    ``(II) the number and percentage of 
                                students who were enrolled and did not 
                                successfully obtain such a credential, 
                                certification, or degree within 150 
                                percent of the program length.
                            ``(ii) Counting transfer students.--For 
                        purposes of clause (i)(I), a student shall be 
                        counted as obtaining a credential, 
                        certification, or degree offered by a program 
                        or institution that was accredited by the 
                        entity during the period for which the report 
                        under this subparagraph is being submitted, if 
                        the student obtains such credential, 
                        certification, or degree after transferring to 
                        another institution during such period.
            ``(2) Authority to provide an accelerated path to 
        recognition.--With respect to a prospective accrediting agency 
        or association that submits to the Secretary an application for 
        initial recognition under this Act, the Secretary may provide 
        such recognition to such agency or association within 2 years 
        after receipt of such application, if such application--
                    ``(A) demonstrates that the agency or association--
                            ``(i) has at least one year of experience 
                        in making accreditation or preaccreditation 
                        decisions; and
                            ``(ii) has policies in place that meet all 
                        the criteria under subsection (a) for 
                        recognition covering the range of the specific 
                        degrees, certificates, institutions, or program 
                        of study for which the agency or association 
                        seeks such recognition; and
                    ``(B) provides an assurance that if the agency or 
                association receives such recognition, the agency or 
                association will submit to the Secretary monitoring 
                reports regarding accreditation or preaccreditation 
                decisions, as appropriate.
            ``(3) Development of common terminology.--Not later than 18 
        months after the date of enactment of the College Cost 
        Reduction Act, the Secretary shall--
                    ``(A) convene a panel of experts to develop common 
                terminology for accrediting agencies or associations to 
                use in making accrediting decisions with respect to 
                program of study or institutions, such as a common 
                understanding of monitoring, warning, show cause, and 
                other relevant statuses, as appropriate; and
                    ``(B) publish the recommendations for such common 
                terminology in the Federal Register with a 60-day 
                public comment period.''.
    (c) Operating Procedures Required.--
            (1) On-site inspections and reviews.--Paragraph (1) of 
        section 496(c) (20 U.S.C. 1099b(c)) is amended--
                    (A) by inserting ``(which may vary based on 
                institutional risk consistent with policies promulgated 
                by the agency or association to determine such risk and 
                interval frequency as authorized under subsection 
                (p))'' after ``intervals''; and
                    (B) by striking ``, including those regarding 
                distance education''.
            (2) Mechanism to identify institutions and programs 
        experiencing difficulties.--Section 496(c) (20 U.S.C. 1099b(c)) 
        is further amended--
                    (A) by redesignating paragraphs (2) through (9) as 
                paragraphs (3) through (10), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) develops a policy process to identify any institution 
        or program of study accredited by the agency or association 
        that is not meeting the standards for accreditation of the 
        agency or association, with a focus on the standards assessing 
        an institution's or program of study's student achievement 
        outcomes described in subsection (a)(5)(A), and other 
        indicators, which shall include--
                    ``(A) not less than annually, evaluating the extent 
                to which such an identified institution or program of 
                study continues to be in compliance with such standards 
                or other indicators; and
                    ``(B) as appropriate, requiring the institution or 
                program of study to submit a plan, on an annual basis, 
                to the accrediting agency or association to--
                            ``(i) address and remedy performance issues 
                        with respect to such compliance; and
                            ``(ii) ensure that such plan is 
                        successfully implemented.''.
            (3) Procedures with respect to substantive changes.--
        Paragraph (5) of section 496(c) (20 U.S.C. 1099b(c)) (as 
        redesignated by paragraph (2)(A)) is amended to read as 
        follows:
            ``(5) establishes and applies or maintains policies, which 
        ensure that any substantive change to the educational mission, 
        program of study, or program of study of an institution after 
        the agency or association has granted the institution 
        accreditation or preaccreditation status does not adversely 
        affect the capacity of the institution to continue to meet the 
        agency's or association's standards for such accreditation or 
        preaccreditation status, which shall include policies that--
                    ``(A) require the institution to obtain the 
                agency's or association's approval of the substantive 
                change before the agency or association includes the 
                change in the scope of the institution's accreditation 
                or preaccreditation status; and
                    ``(B) define substantive change to include, at a 
                minimum--
                            ``(i) any change in the established mission 
                        or objectives of the institution;
                            ``(ii) any change in the legal status, form 
                        of control, or ownership of the institution, 
                        including the acquisition or addition of any 
                        other institution or new location where more 
                        than 50 percent of a program is offered;
                            ``(iii) the addition of program of study at 
                        a higher credential level from the credential 
                        level previously accredited by the agency or 
                        association; or
                            ``(iv) the entering into a contract under 
                        which an institution or organization not 
                        certified to participate in programs under this 
                        title offers more than 25 percent but less than 
                        50 percent of the instruction of an educational 
                        program of the institution with such 
                        accreditation or preaccreditation status;''.
            (4) Public availability.--Section 496(c) (20 U.S.C. 
        1099b(c)) is further amended--
                    (A) in paragraph (8) (as redesignated by paragraph 
                (2)(A))--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``, on the agency's or 
                        association's website,'' after ``public''; and
                            (ii) in subparagraph (C), by inserting 
                        before the semicolon at the end the following: 
                        ``, and a summary of why such action was taken 
                        or such placement was made'';
                    (B) in paragraph (9) (as so redesignated), by 
                striking ``and'' at the end;
                    (C) in paragraph (10)(B) (as so redesignated), by 
                inserting before the period at the end the following: 
                ``, including an assurance that the institution does 
                not deny a transfer of credit based solely on the 
                accreditation of the institution at which the credit 
                was earned''; and
                    (D) by adding at the end the following:
            ``(11) such agency or association shall make publicly 
        available, on the agency or association's website, a list of 
        the institutions of higher education or program of study 
        accredited by such agency or association, which includes, with 
        respect to each such institution or program of study--
                    ``(A) the year accreditation was granted;
                    ``(B) the most recent date of an award of 
                accreditation or reaccreditation; and
                    ``(C) the anticipated date of the institution's 
                next evaluation for reaccreditation.''.
            (5) Prohibition on litmus tests.--Section 496(c) (20 U.S.C. 
        1099b(c)) is further amended by adding at the end the 
        following:
            ``(12) confirms that the standards for accreditation of the 
        agency or association do not--
                    ``(A) except as provided in subparagraph (B)--
                            ``(i) require, encourage, or coerce any 
                        institution to--
                                    ``(I) support, oppose, or commit to 
                                supporting or opposing--
                                            ``(aa) a specific partisan, 
                                        political, or ideological 
                                        viewpoint or belief or set of 
                                        such viewpoints or beliefs; or
                                            ``(bb) a specific viewpoint 
                                        or belief or set of viewpoints 
                                        or beliefs on social, cultural, 
                                        or political issues; or
                                    ``(II) support or commit to 
                                supporting the disparate treatment of 
                                any individual or group of individuals 
                                on the basis of any protected class 
                                under Federal civil rights law, except 
                                as required by Federal law or a court 
                                order; or
                            ``(ii) assess an institution's or program 
                        of study's commitment to any ideology, belief, 
                        or viewpoint;
                    ``(B) prohibit an institution--
                            ``(i) from having a religious mission or 
                        from requiring an applicant, student, employee, 
                        or independent contractor (such as an adjunct 
                        professor) of such an institution to--
                                    ``(I) provide or adhere to a 
                                statement of faith; or
                                    ``(II) adhere to a code of conduct 
                                consistent with the stated religious 
                                mission of such institution or the 
                                religious tenets of such organization; 
                                or
                            ``(ii) from requiring an applicant, 
                        student, employee, or contractor to take an 
                        oath to uphold the Constitution of the United 
                        States; or
                    ``(C) require, encourage, or coerce an institution 
                of higher education to violate any right protected by 
                the Constitution;''.
            (6) Prohibition on assessment of elected or appointed 
        officials.--Section 496(c) (20 U.S.C. 1099b(c)) is further 
        amended by adding at the end the following:
            ``(13) confirms that the standards for accreditation of the 
        agency or association do not assess the roles (including 
        actions or statements) of elected and appointed State and 
        Federal officials and legislative bodies;''.
            (7) Prohibition of practices that drive credential 
        inflation.--Section 496(c) (20 U.S.C. 1099b(c)) is further 
        amended by adding at the end the following:
            ``(14) confirms that the standards for accreditation of the 
        agency or association do not require an institution to develop 
        a program of study leading to a degree, certificate, or 
        recognized postsecondary credential that is not in response to 
        the needs of an industry or occupation.''.
    (d) Length of Recognition.--Subsection (d) of section 496 (20 
U.S.C. 1099b) is amended--
            (1) by striking ``No accrediting'' and inserting the 
        following:
            ``(1) In general.--Except as otherwise provided in 
        paragraph (2), no accrediting''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Longer recognition authorized for certain agencies 
        and associations.--Notwithstanding paragraph (1), an 
        accrediting agency or association that has been recognized by 
        the Secretary for the purpose of this Act for a period of 5 
        years, may be recognized for an additional period of up to 3 
        years, if the Secretary determines, based on the performance of 
        the accrediting agency or association during its recognition 
        period under this Act, that the accrediting agency or 
        association--
                    ``(A) has the capability to evaluate the quality of 
                institutions or program of study; and
                    ``(B) has maintained compliance with the criteria 
                for accrediting agencies or associations required by 
                this section.''.
    (e) Limitation on Scope of Criteria.--Section 496 (20 U.S.C. 1099b) 
is further amended by amending subsection (g) to read as follows:
    ``(g) Limitation on Scope of Criteria.--
            ``(1) In general.--The Secretary shall not establish 
        criteria for accrediting agencies or associations that are not 
        required by this section.
            ``(2) Institutional eligibility.--An institution of higher 
        education shall be eligible for participation in programs under 
        this title if the institution is in compliance with the 
        standards of its accrediting agency or association that assess 
        the institution in accordance with subsection (a)(5), 
        regardless of any additional standards adopted by the agency or 
        association for purposes unrelated to participation in programs 
        under this title.''.
    (f) Change of Accrediting Agency.--Section 496 (20 U.S.C. 1099b) is 
further amended by amending subsection (h) to read as follows:
    ``(h) Change of Accrediting Agency or Association.--
            ``(1) In general.--The Secretary shall recognize the 
        accreditation of any otherwise eligible institution or program 
        of study if the institution (or program) is in the process of 
        changing its accrediting agency or association, unless the 
        institution (or program) is subject to one or more covered 
        actions.
            ``(2) Covered action defined.--For purposes of this 
        subsection, the term `covered action' means one or more of the 
        following, when used with respect to an institution or program 
        of study:
                    ``(A) A pending or final action brought by a State 
                agency to suspend, revoke, withdraw, or terminate the 
                institution's legal authority to provide postsecondary 
                education in the State.
                    ``(B) A decision by a recognized accrediting agency 
                or association to deny accreditation or 
                preaccreditation to the institution or program of 
                study.
                    ``(C) A pending or final action brought by a 
                recognized accrediting agency or association to 
                suspend, revoke, withdraw, or terminate the 
                institution's or program of study's accreditation or 
                preaccreditation.
                    ``(D) Probation or an equivalent status imposed on 
                the institution or program of study by a recognized 
                accrediting agency or association.
            ``(3) Institutions of higher education not subject to 
        covered actions.--An institution (or program of study) that is 
        not subject to a covered action described in paragraph (1) and 
        that desires to change its accrediting agency or association 
        for a reason not related to any such covered action (such as 
        compliance with State law) may make such a change without the 
        approval of the Secretary, as long as the institution (or 
        program) and the new accrediting agency or association of the 
        institution (or program), not later than 30 days after the 
        accreditation decision by such agency or association, notify 
        the Secretary, in writing, of the effective date of the 
        institution's (or program's) accreditation by such agency or 
        association.''.
    (g) Dual Accreditation Rule.--Section 496 (20 U.S.C. 1099b) is 
further amended by amending subsection (i) to read as follows:
    ``(i) Dual Accreditation Rule.--
            ``(1) Recognition by secretary.--The Secretary shall 
        recognize the accreditation of any otherwise eligible 
        institution of higher education if the institution of higher 
        education is accredited, as an institution, by more than one 
        accrediting agency or association.
            ``(2) Designation by institution.--If the institution is 
        accredited, as an institution, by more than one accrediting 
        agency or association, the institution--
                    ``(A) shall designate which agency's or 
                association's accreditation shall be utilized in 
                determining the institution's eligibility for 
                participation in programs under this Act; and
                    ``(B) may change this designation at the end of the 
                institution's period of recognition.''.
    (h) Religious Institutions Rule.--Section 496 (20 U.S.C. 1099b) is 
further amended by amending subsection (k) to read as follows:
    ``(k) Religious Institution Rule.--
            ``(1) In general.--Notwithstanding subsection (j), the 
        Secretary shall allow an institution that has had its 
        accreditation withdrawn, revoked, or otherwise terminated, or 
        has voluntarily withdrawn from an accreditation agency, to 
        remain certified as an institution of higher education under 
        section 102 and subpart 3 of this part for a period sufficient 
        to allow such institution to obtain alternative accreditation, 
        if the Secretary determines that the withdrawal, revocation, or 
        termination--
                    ``(A) is related to the religious mission or 
                affiliation of the institution; and
                    ``(B) is not related to the accreditation criteria 
                provided for in this section.
            ``(2) Administrative complaint for failure to respect 
        religious mission.--
                    ``(A) In general.--
                            ``(i) Institution.--If an institution of 
                        higher education believes that an adverse 
                        action of an accrediting agency or association 
                        fails to respect the institution's religious 
                        mission in violation of subsection (a)(4)(B), 
                        the institution--
                                    ``(I) may file a complaint with the 
                                Secretary to review the adverse action 
                                of the agency or association; and
                                    ``(II) prior to filing such 
                                complaint, shall notify the Secretary 
                                and the agency or association of an 
                                intent to file such complaint not later 
                                than 30 days after--
                                            ``(aa) receiving the 
                                        adverse action from the agency 
                                        or association; or
                                            ``(bb) determining that 
                                        discussions with or the 
                                        processes of the agency or 
                                        association to remedy the 
                                        failure to respect the 
                                        religious mission of the 
                                        institution will fail to result 
                                        in the withdrawal of the 
                                        adverse action by the agency or 
                                        association.
                            ``(ii) Accrediting agency or association.--
                        Upon notification of an intent to file a 
                        complaint and through the duration of the 
                        complaint process under this paragraph, the 
                        Secretary and the accrediting agency or 
                        association shall treat the accreditation 
                        status of the institution of higher education 
                        as if the adverse action for which the 
                        institution is filing the complaint had not 
                        been taken.
                    ``(B) Complaint.--Not later than 45 days after 
                providing notice of the intent to file a complaint, the 
                institution shall file the complaint with the Secretary 
                (and provide a copy to the accrediting agency or 
                association), which shall include--
                            ``(i) a description of the adverse action;
                            ``(ii) how the adverse action fails to 
                        respect the institution's religious mission in 
                        violation of subsection (a)(4)(B); and
                            ``(iii) any other information the 
                        institution determines relevant to the 
                        complaint.
                    ``(C) Response.--
                            ``(i) In general.--The accrediting agency 
                        or association shall have 30 days from the date 
                        the complaint is filed with the Secretary to 
                        file with the Secretary (and provide a copy to 
                        the institution) a response to the complaint, 
                        which response shall include--
                                    ``(I) how the adverse action is 
                                based on a violation of the agency or 
                                association's standards for 
                                accreditation; and
                                    ``(II) how the adverse action does 
                                not fail to respect the religious 
                                mission of the institution and is in 
                                compliance with subsection (a)(4)(B).
                            ``(ii) Burden of proof.--
                                    ``(I) In general.--The accrediting 
                                agency or association shall bear the 
                                burden of proving that the agency or 
                                association has not taken the adverse 
                                action as a result of the institution's 
                                religious mission, and that the action 
                                does not fail to respect the 
                                institution's religious mission in 
                                violation of subsection (a)(4)(B), by 
                                showing that the adverse action does 
                                not impact the aspect of the religious 
                                mission claimed to be affected in the 
                                complaint.
                                    ``(II) Insufficient proof.--Any 
                                evidence that the adverse action 
                                results from the application of a 
                                neutral and generally applicable rule 
                                shall be insufficient to prove that the 
                                action does not fail to respect an 
                                institution's religious mission.
                    ``(D) Additional institution response.--The 
                institution shall have 30 days from the date on which 
                the agency or association's response is filed with the 
                Secretary to--
                            ``(i) file with the Secretary (and provide 
                        a copy to the agency or association) a response 
                        to any issues raised in the response of the 
                        agency or association; or
                            ``(ii) inform the Secretary and the agency 
                        or association that the institution elects to 
                        waive the right to respond to the response of 
                        the agency or association.
                    ``(E) Secretarial action.--
                            ``(i) In general.--Not later than 30 days 
                        of receipt of the institution's response under 
                        subparagraph (D) or notification that the 
                        institution elects not to file a response under 
                        such subparagraph--
                                    ``(I) the Secretary shall review 
                                the materials to determine if the 
                                accrediting agency or association has 
                                met its burden of proof under 
                                subparagraph (C)(ii)(I); or
                                    ``(II) in a case in which the 
                                Secretary fails to conduct such 
                                review--
                                            ``(aa) the Secretary shall 
                                        be deemed as determining that 
                                        the adverse action fails to 
                                        respect the religious mission 
                                        of the institution; and
                                            ``(bb) the accrediting 
                                        agency or association shall be 
                                        required to reverse the action 
                                        immediately and take no further 
                                        action with respect to such 
                                        adverse action.
                            ``(ii) Review of complaint.--In reviewing 
                        the complaint under clause (i)(I)--
                                    ``(I) the Secretary shall consider 
                                the institution to be correct in the 
                                assertion that the adverse action fails 
                                to respect the institution's religious 
                                mission and shall apply the burden of 
                                proof described in subparagraph 
                                (C)(ii)(I) with respect to the 
                                accrediting agency or association; and
                                    ``(II) if the Secretary determines 
                                that the accrediting agency or 
                                association fails to meet such burden 
                                of proof--
                                            ``(aa) the Secretary shall 
                                        notify the institution and the 
                                        agency or association that the 
                                        agency or association is not in 
                                        compliance with subsection 
                                        (a)(4)(B), and that such agency 
                                        or association shall carry out 
                                        the requirements of item (bb) 
                                        to be in compliance with 
                                        subsection (a)(4)(B); and
                                            ``(bb) the agency or 
                                        association shall reverse the 
                                        adverse action immediately and 
                                        take no further action with 
                                        respect to such adverse action.
                            ``(iii) Final departmental action.--The 
                        Secretary's determination under this 
                        subparagraph shall be the final action of the 
                        Department on the complaint.
                    ``(F) Rule of construction.--Nothing in this 
                paragraph shall prohibit--
                            ``(i) an accrediting agency or association 
                        from taking an adverse action against an 
                        institution of higher education for a failure 
                        to comply with the agency or association's 
                        standards of accreditation as long as such 
                        standards are in compliance with subsection 
                        (a)(4)(B) and any other applicable requirements 
                        of this section; or
                            ``(ii) an institution of higher education 
                        from exercising any other rights to address 
                        concerns with respect to an accrediting agency 
                        or association or the accreditation process of 
                        an accrediting agency or association.
                    ``(G) Guidance.--
                            ``(i) In general.--The Secretary may only 
                        issue guidance under this paragraph that 
                        explains or clarifies the process for providing 
                        notice of an intent to file a complaint or for 
                        filing a complaint under this paragraph.
                            ``(ii) Clarification.--The Secretary may 
                        not issue guidance, or otherwise determine or 
                        suggest, when discussions to remedy the failure 
                        by an accrediting agency or association to 
                        respect the religious mission of an institution 
                        of higher education referred to in subparagraph 
                        (A)(i)(II)(bb) have failed or will fail.
            ``(3) Religious mission defined.--In this Act, the term 
        `religious mission'--
                    ``(A) means a published institutional mission that 
                is approved by the governing body of an institution of 
                higher education and that includes, refers to, or is 
                predicated upon religious tenets, beliefs, or 
                teachings; and
                    ``(B) may be reflected in any of the institution's 
                policies, decisions, or practices related to such 
                tenets, beliefs, or teachings (including any policies 
                or decisions concerning housing, employment, 
                curriculum, self-governance, or student admission, 
                continuing enrollment, or graduation).''.
    (i) Independent Evaluation.--Section 496(n)(3) (20 U.S.C. 
1099b(n)(3)) is amended by striking the last sentence.
    (j) Regulations.--Section 496(o) (20 U.S.C. 1099b(o)) is amended by 
inserting before the period at the end the following: ``, or with 
respect to the policies and procedures of an accreditation agency or 
association described in paragraph (2) or (5) of subsection (c) or how 
the agency or association carries out such policies and procedures''.
    (k) Risk-Based Review Processes or Procedures; Waiver.--Section 496 
(20 U.S.C. 1099b) is further amended--
            (1) by striking subsections (p) and (q); and
            (2) by adding at the end the following:
    ``(p) Risk-Based or Differentiated Review Processes or 
Procedures.--
            ``(1) In general.--Notwithstanding any other provision of 
        law (including subsection (a)(4)(A)), an accrediting agency or 
        association shall establish risk-based processes or procedures 
        for assessing compliance with the accrediting agency or 
        association's standards (including policies related to 
        substantive change and award of accreditation statuses) under 
        which the agency or association--
                    ``(A) creates a system for designating each 
                institution of higher education and program of study 
                that the agency or association evaluates, such as 
                through using peer benchmarking to understand an 
                institution's or program of study's performance in 
                comparison with its peers (which may include past 
                performance with respect to meeting the accrediting 
                agency or association's standards, including the 
                standards relating to the student achievement outcomes 
                described in subclauses (I) through (IV) of subsection 
                (a)(5)(A));
                    ``(B) requires for each institution and program of 
                study designated as high-risk, in accordance with the 
                accrediting agency or association's system in 
                subparagraph (A), to submit the annual plans described 
                in subsection (c)(2)(B) to the agency or association 
                that address the performance issues of such institution 
                or program of study that resulted in such designation;
                    ``(C) with respect to institutions or program of 
                study meeting or exceeding performance as described in 
                subparagraph (A), reduces any compliance requirements 
                with the standards of accreditation of the agency that 
                are not assessing an institution or program of study 
                under subsection (a)(5), such as on-site inspections; 
                and
                    ``(D) may require an institution or program of 
                study that has declining performance (such as an 
                institution or program of study with a high-risk 
                designation under subparagraph (B)), which has not 
                improved as required by the annual plan submitted under 
                subsection (c)(2)(B), to take actions to avoid or 
                minimize the risks that may lead to revocation of 
                accreditation (such as limiting certain program of 
                study enrollment or recommending to the Secretary to 
                limit funds under this title for such an institution or 
                program).
            ``(2) Prohibition.--Any risk-based review process or 
        procedure established pursuant to this subsection shall not 
        discriminate against, or otherwise preclude, institutions of 
        higher education based on institutional sector or category, 
        including an institution of higher education's tax status.''.
    (l) Total Price Defined.--Section 496 (20 U.S.C. 1099b) is further 
amended by adding at the end the following:
    ``(q) Total Price Defined.--For purposes of this section, the term 
`total price' has the meaning given such term in section 454(d)(3).''.

SEC. 312. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
              INTEGRITY (NACIQI).

    Section 114 (20 U.S.C. 1011c) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by redesignating 
                subparagraphs (A) through (C) as clauses (i) through 
                (iii), respectively, and adjusting the margins 
                accordingly;
                    (B) by striking ``Individuals'' and inserting the 
                following:
                    ``(A) In general.--Individuals'';
                    (C) in clause (ii), as so redesignated, by striking 
                ``and training'' and inserting ``skills development'';
                    (D) by adding at the end the following:
                    ``(B) Disqualification.--No individual may be 
                appointed as a member of the Committee if such 
                individual has a significant conflict of interest, such 
                as being a current regulator (such as a State 
                authorizer) that would require the individual to 
                frequently be recused from serving as a member of the 
                Committee.''; and
                    (E) in paragraph (3), by striking ``Except as 
                provided in paragraph (5), the term'' and inserting 
                ``The term'';
            (2) in subsection (c)--
                    (A) in paragraph (4), by adding ``and'' at the end;
                    (B) in paragraph (5), by striking ``; and'' at the 
                end and inserting a period; and
                    (C) by striking paragraph (6);
            (3) in subsection (d)(2), by inserting at the end the 
        following: ``The name of any member of the Committee who has 
        been recused with respect to an agenda item of the meeting 
        shall be included in such agenda.'';
            (4) in subsection (e)(2)(D), by striking ``, including any 
        additional functions established by the Secretary through 
        regulation''; and
            (5) in subsection (f), by striking ``September 30, 2021'' 
        and inserting ``September 30, 2028''.

SEC. 313. ALTERNATIVE QUALITY ASSURANCE EXPERIMENTAL SITE INITIATIVE.

    Section 487A of the Higher Education Act of 1965 (20 U.S.C. 1094a) 
is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the end the 
        following:
    ``(c) Alternative Quality Assurance Experimental Site Initiative.--
            ``(1) Experimental site authorized.--The Secretary shall 
        select, in accordance with paragraph (4), eligible entities 
        that voluntarily seek to participate in an Alternative Quality 
        Assurance experimental site initiative for a duration of 5 
        years and receive the waivers or other flexibility described in 
        paragraph (5) to evaluate whether the eligible entities, during 
        such 5-year period, can maintain high student achievement 
        outcomes while participating in programs under this title 
        without being accredited by an accrediting agency or 
        association recognized under section 496.
            ``(2) Eligible entity defined.--For purposes of this 
        subsection, an eligibility entity means--
                    ``(A) an institution of higher education (as 
                defined in section 102); or
                    ``(B) an educational provider that--
                            ``(i) is not an institution of higher 
                        education;
                            ``(ii) does not receive funding under this 
                        Act;
                            ``(iii) is not accredited by an accrediting 
                        agency or association for the purposes of this 
                        title; and
                            ``(iv) is authorized to operate in the 
                        State in which the provider is located.
            ``(3) Application.--
                    ``(A) In general.--Each eligible entity desiring to 
                participate in the experimental site initiative under 
                this subsection shall submit an application to the 
                Secretary, at such time and in such manner as the 
                Secretary may require, which shall contain the 
                information described in subparagraph (B). The 
                Secretary may not require any information in such an 
                application that is not described in subparagraph (B).
                    ``(B) Contents.--Each application under paragraph 
                (1) shall include--
                            ``(i) a description of which program of 
                        study offered at the eligible entity will be 
                        included in the experimental site initiative, 
                        including--
                                    ``(I) in the case of an eligible 
                                entity that is an institution of higher 
                                education, an attestation that such 
                                program meets the standards of 
                                accreditation of the institution's 
                                accrediting agency or association 
                                described in clauses (i) through (iv) 
                                of section 496(a)(5)(A) (including the 
                                standard requiring that the median 
                                value-added earnings of students who 
                                complete the program are greater than 
                                the median total price charged to 
                                students for the program); and
                                    ``(II) in the case of an eligible 
                                entity defined in paragraph (2)(B), 
                                documentation and verified 
                                administrative data that the program 
                                meets standards similar to the 
                                standards of accreditation referenced 
                                in subclause (I);
                            ``(ii) a justification of the reason why 
                        the eligible entity seeks to receive the waiver 
                        described in paragraph (5)(A), including 
                        estimates or documentation of the potential 
                        savings to the entity of receiving such waiver; 
                        and
                            ``(iii) a description of how the eligible 
                        entity plans to share the financial risk with 
                        the Secretary of receiving the waivers 
                        described in paragraph (5), such as by--
                                    ``(I) providing matching non-
                                Federal funds to the Secretary to cover 
                                the cost of at least half of the 
                                expected disbursements under this title 
                                to the students that enroll in such 
                                program for the first year of the 
                                experiment;
                                    ``(II) providing a letter of credit 
                                to the Secretary to cover the cost 
                                described in subclause (I); or
                                    ``(III) requesting to be placed on 
                                a reimbursement system of payment.
            ``(4) Selection.--No later than 6 months after the 
        experimental site initiative is announced, the Secretary shall 
        select eligible entities to participate in the initiative based 
        on the applications submitted under paragraph (3). In making 
        such selections, the Secretary--
                    ``(A) shall consider--
                            ``(i) the number and quality of 
                        applications;
                            ``(ii) each applicant's ability to 
                        effectively share the financial risk as 
                        required under paragraph (3)(B)(iii); and
                            ``(iii) in the case of an applicant that is 
                        an institution of higher education, the 
                        applicant's history of compliance with the 
                        requirements of this Act;
                    ``(B) shall ensure that the selected eligible 
                entities represent a variety of eligible entities with 
                respect to size, mission, and geographic distribution;
                    ``(C) shall ensure that the number of eligible 
                entities selected that are institutions of higher 
                education described in paragraph (2)(B) is equal to the 
                number of eligible entities selected that are 
                educational providers described in paragraph (2)(B); 
                and
                    ``(D) may not select any eligible entity whose 
                approval to operate in a State is at risk.
            ``(5) Waivers.--The Secretary is authorized to waive, for 
        any eligible entity participating in the experimental site 
        initiative under this subsection--
                    ``(A) any requirements conditioning an eligible 
                entity's eligibility to participate in programs under 
                this title to being accredited by an accrediting agency 
                or association recognized under section 496; and
                    ``(B) any other requirements of this title 
                determined necessary by the Secretary to carry out such 
                initiative (including requirements related to the award 
                process and disbursement of student financial aid, or 
                other management procedures or processes), except that 
                the Secretary shall not waive any provisions with 
                respect to award rules (other than an award rule 
                related to an experiment in modular or compressed 
                schedules), grant and loan maximum award amounts, and 
                need analysis requirements, unless the waiver of such 
                provisions is authorized by another provision under 
                this title.
            ``(6) Review and evaluation.--
                    ``(A) In general.--The Secretary shall review and 
                evaluate the experimental site initiative conducted 
                under this subsection, including by evaluating, with 
                respect to each participating program of each 
                participating eligible entity, whether--
                            ``(i) the median value-added earnings of 
                        students who complete the program of study are 
                        greater than the median total price charged to 
                        students for such program; and
                            ``(ii) the program of study is meeting 
                        other student achievement outcomes (such as 
                        outcomes based on standards of accreditation 
                        described in section 496(a)(5)(A)), as 
                        appropriate for the program.
                    ``(B) Recommendations.--If, based on such 
                evaluation, the Secretary determines that participating 
                eligible entities were able to meet the requirement of 
                subparagraph (A)(i) and the other student achievement 
                outcomes evaluated by the Secretary under subparagraph 
                (A)(ii), the Secretary shall submit to the authorizing 
                committees recommendations regarding amendments to this 
                Act that will streamline and enhance the quality 
                assurance process of institutions of higher education, 
                and educational providers described in paragraph 
                (2)(B).''.

                        PART B--STUDENT SUCCESS

SEC. 321. POSTSECONDARY STUDENT SUCCESS GRANTS.

    Part B of title VII of the Higher Education Act of 1965 (20 U.S.C. 
1138 et seq.) is amended--
            (1) in section 741--
                    (A) by striking subsections (b), (c), (e), and (f);
                    (B) by redesignating subsection (d) as subsection 
                (c); and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Grants.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Completion rate.--The term `completion rate' 
                means--
                            ``(i) the percentage of students from an 
                        initial cohort enrolled at an institution of 
                        higher education that is a 2-year institution 
                        who have graduated from the institution or 
                        transferred to a 4-year institution of higher 
                        education; or
                            ``(ii) the percentage of students from an 
                        initial cohort enrolled at an institution of 
                        higher education in the State that is a 4-year 
                        institution who have graduated from the 
                        institution.
                    ``(B) Eligible entity.--The term `eligible entity' 
                means--
                            ``(i) an institution of higher education;
                            ``(ii) a partnership between a nonprofit 
                        educational organization and an institution of 
                        higher education; and
                            ``(iii) a consortium of institutions of 
                        higher education.
                    ``(C) Eligible indian entity.--The term `eligible 
                Indian entity' means the entity responsible for the 
                governance, operation, or control of a Tribal College 
                or University.
                    ``(D) Evidence-based.--The term `evidence-based' 
                has the meaning given the term in section 8101(21)(A) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801(21)(A)), except that such term shall 
                also apply to institutions of higher education.
                    ``(E) Evidence tiers.--
                            ``(i) Evidence tier 1 reform or practice.--
                        The term `evidence tier 1 reform or practice' 
                        means a reform or practice that prior research 
                        suggests has promise for the purpose of 
                        successfully improving student achievement or 
                        attainment for high-need students.
                            ``(ii) Evidence tier 2 reform or 
                        practice.--The term `evidence tier 2 reform or 
                        practice' means a reform or practice described 
                        in clause (i), or other practice meeting 
                        similar criteria, that measures impact and cost 
                        effectiveness of student success activities, 
                        and, through rigorous evaluation (including 
                        through the use of existing administrative 
                        data, as applicable), has been found to be 
                        successfully implemented.
                            ``(iii) Evidence tier 3 reform or 
                        practice.--The term `evidence tier 3 reform or 
                        practice' means a reform or practice described 
                        in clause (ii), or other practice meeting 
                        similar criteria, that has been found to 
                        produce sizable, important impacts on student 
                        success and--
                                    ``(I) determines whether such 
                                impacts can be successfully reproduced 
                                and sustained over time; and
                                    ``(II) identifies the conditions in 
                                which such reform or practice is most 
                                effective.
                    ``(F) First generation college student.--The term 
                `first generation college student' has the meaning 
                given the term in section 402A(h) of the Higher 
                Education Act of 1965 (20 U.S.C. 1070a-11(h)).
                    ``(G) High-need student.--The term `high-need 
                student' means--
                            ``(i) a student from low-income background;
                            ``(ii) first generation college students;
                            ``(iii) caregiver students;
                            ``(iv) students with disabilities;
                            ``(v) students who stopped out before 
                        completing;
                            ``(vi) reentering justice-impacted 
                        students; and
                            ``(vii) military-connected students.
                    ``(H) Secretary.--The term `Secretary' means the 
                Secretary of Education.
                    ``(I) Tribal college or university.--The term 
                `Tribal College or University' has the meaning given 
                the term in section 316(b) of the Higher Education Act 
                of 1965 (20 U.S.C. 1059c(b)).
            ``(2) Reservation of funds for eligible indian entities.--
        From the total amount appropriated to carry out this subsection 
        for a fiscal year, the Secretary shall reserve 2 percent for 
        grants to eligible Indian entities to increase participation 
        and completion rates of high-need students.
            ``(3) Authorization of postsecondary student success 
        competitive grants.--
                    ``(A) Grant authorization.--For each of fiscal 
                years 2025 through 2030, the Secretary shall award, on 
                a competitive basis, grants to eligible entities to 
                provide student services to increase participation, 
                retention, and completion rates of high-need students.
                    ``(B) Application.--An eligible entity desiring a 
                grant under this section shall submit an application to 
                the Secretary at such time, in such manner, and 
                containing the information required under subparagraph 
                (C).
                    ``(C) Contents.--An application submitted under 
                this paragraph shall include the following:
                            ``(i) A plan to increase, with respect to 
                        all students enrolled at the institution of 
                        higher education, attainment and completion 
                        rates or graduation rates, including--
                                    ``(I) a description of which 
                                evidence tiers would be met by the 
                                evidence-based reforms or practices; 
                                and
                                    ``(II) a particular focus on 
                                serving high-need students through 
                                student services and collaboration 
                                among 2-year programs, 4-year programs, 
                                and workforce systems.
                            ``(ii) Annual benchmarks for student 
                        outcomes with respect to evidence-based reforms 
                        or practices.
                            ``(iii) A plan to evaluate the evidence-
                        based reforms or practices carried out pursuant 
                        to a grant received under this subsection.
                            ``(iv) Rates of enrolled students who 
                        received a Federal Pell Grant under section 
                        401.
                            ``(v) Demographics of enrolled students, 
                        including high-need students.
                            ``(vi) A description of how the eligible 
                        entity will, directly or in collaboration with 
                        institutions of higher education or nonprofit 
                        organizations, use the grant funds to implement 
                        1 or more of the following evidence-based 
                        reforms or practices:
                                    ``(I) Providing comprehensive 
                                academic, career, and student services, 
                                which may include mentoring, advising, 
                                or case management services.
                                    ``(II) Providing accelerated 
                                learning opportunities, which may 
                                include dual or concurrent enrollment 
                                programs and early college high school 
                                programs.
                                    ``(III) Reforming course scheduling 
                                or credit-awarding policies.
                                    ``(IV) Improving transfer pathways 
                                between the institution of higher 
                                education, or eligible Indian entity, 
                                and other institutions of higher 
                                education.
                            ``(vii) A description of how the evidence-
                        based reforms or practices carried out pursuant 
                        to a grant under this subsection will be 
                        sustained once the grant expires.
                    ``(D) Evidence-based student success programs.--
                From the total amount appropriated to carry out this 
                subsection for a fiscal year and not reserved under 
                paragraph (4), the Secretary shall reserve not less 
                than 20 percent to award grants to eligible entities 
                with applications that propose to include reforms or 
                practices--
                            ``(i) at least 1 of which is a tier 3 
                        reform or practice; and
                            ``(ii) the rest of which are tier 1 or tier 
                        2 reforms or practices.
                    ``(E) Required use of funds.--An eligible entity 
                that receives a grant under this section shall use the 
                grant funds to carry out the plans submitted pursuant 
                to subparagraph (C) and for evidence-based reforms or 
                practices for improving retention and completion rates 
                of students that may include the following:
                            ``(i) Student services to support 
                        retention, completion, and success, which may 
                        include--
                                    ``(I) faculty and peer counseling;
                                    ``(II) use of real-time data on 
                                student progress;
                                    ``(III) improving transfer student 
                                success; and
                                    ``(IV) incentives for students to 
                                re-enroll or stay on track.
                            ``(ii) Direct student support services, 
                        including a combination of--
                                    ``(I) tutoring, academic supports, 
                                and enrichment services; and
                                    ``(II) emergency financial 
                                assistance.
                            ``(iii) Efforts to prepare students for a 
                        career, which may include--
                                    ``(I) career coaching, career 
                                counseling and planning services, and 
                                efforts to lower student to advisor 
                                ratios;
                                    ``(II) networking and work-based 
                                learning opportunities to support the 
                                development of skills and professional 
                                relationships;
                                    ``(III) utilizing career pathways; 
                                and
                                    ``(IV) boosting experiences 
                                necessary to obtain and succeed in 
                                high-wage, high-skilled, (as described 
                                in section 122 of the Carl D. Perkins 
                                Career and Technical Education Act of 
                                2006 (20 U.S.C. 2342)) or in-demand 
                                sectors or occupations (as defined in 
                                section 3(23) of the Workforce 
                                Innovation and Opportunity Act (29 
                                U.S.C. 3102(23)).
                            ``(iv) Efforts to recruit and retain 
                        faculty and other instructional staff.
                    ``(F) Permissive use of funds.--From the total 
                amount appropriated to carry out this subsection for a 
                fiscal year, and not reserved under paragraph (4) or 
                subparagraph (D), the Secretary may set aside--
                            ``(i) not more than 5 percent for 
                        administration, capacity building, research, 
                        evaluation, and reporting; and
                            ``(ii) not more than 2 percent for 
                        technical assistance to eligible entities.
                    ``(G) Evaluations.--
                            ``(i) In general.--For the purpose of 
                        improving the effectiveness of the evidence-
                        based reforms or practices carried out by 
                        eligible entities pursuant to a grant under 
                        this subsection, the Secretary shall make 
                        grants to or enter into contracts with one or 
                        more organizations to--
                                    ``(I) evaluate the effectiveness of 
                                such reforms or practices; and
                                    ``(II) disseminate information on 
                                the impact of such reforms or practices 
                                in increasing completion and retention 
                                activities of students, as well as 
                                other appropriate measures.
                            ``(ii) Issues to be evaluated.--The 
                        evaluations required under clause (i) shall 
                        measure the effectiveness of the evidence-based 
                        reforms or practices carried out by eligible 
                        entities pursuant to a grant under this 
                        subsection in--
                                    ``(I) whether such eligible entity 
                                implemented the plans, and carried out 
                                the activities, described in 
                                subparagraph (C); and
                                    ``(II) comparing the completion and 
                                retention rates of students who 
                                participated in such reforms or 
                                practices with the rates of students of 
                                similar backgrounds who did not 
                                participate in such reforms or 
                                practices.
                            ``(iii) Results.--Not later than 18 months 
                        after the date of the enactment of this 
                        subsection, the Secretary shall submit to the 
                        authorizing committees a final report.
                    ``(H) Grant limit.--An institution with branch 
                campuses that is an eligible entity may only receive a 
                grant under this subsection for 1 campus of such 
                institution at a time.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection, 
        $45,000,000, for each of fiscal years 2026 through 2031.''; and
            (2) by striking sections 742 through 745.

SEC. 322. REVERSE TRANSFER EFFICIENCY ACT.

    Section 444(b)(1) of the General Education Provisions Act (20 
U.S.C. 1232g(b)(1)) is amended--
            (1) in subparagraph (K)(ii), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (L), by striking the period at the end 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (L) the following:
                    ``(M) an institution of postsecondary education in 
                which a student was previously enrolled, to which 
                records of postsecondary coursework and credits are 
                sent for the purpose of applying such coursework and 
                credits toward completion of a recognized postsecondary 
                credential (as that term is defined in section 3 of the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3102)), upon condition that the student provides 
                written consent prior to receiving such credential.''.

SEC. 323. TRANSPARENT AND FAIR TRANSFER OF CREDIT POLICIES.

    Section 485(h) of the Higher Education Act of 1965 (20 U.S.C. 
1092(h)) is amended--
            (1) in paragraph (1)(A), by inserting ``, including with 
        respect to the acceptance or denial of such credit'' after 
        ``higher education'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Denial of credit transfer.--An institution may not 
        establish a transfer of credit policy which denies credit 
        earned at another institution based solely on the source of 
        accreditation of such other institution, provided that such 
        other institution is accredited by an agency or association 
        that is recognized by the Secretary pursuant to section 496.''.
                                 <all>
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