I 

116TH CONGRESS 

1ST SESSION H. R. 4206 

To amend the Higher Education Act of 1965 to include requirements for 

programs of training to prepare students for gainful employment in 

a recognized occupation. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 23, 2019 

Mr. TAKANO (for himself and Ms. SHALALA) introduced the following bill; 

which was referred to the Committee on Education and Labor 

A BILL 

To amend the Higher Education Act of 1965 to include 

requirements for programs of training to prepare students for gainful employment in a recognized occupation. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Student and Taxpayer 

5 Protection Act’’. 

6 SEC. 2. GAINFUL EMPLOYMENT PROGRAMS. 

7 Part A of title I of the Higher Education Act of 1965 

8 (20 U.S.C. 1001 et seq.) is amended by adding at the end 

9 the following: 


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1 ‘‘SEC. 104. PROGRAM OF TRAINING TO PREPARE STUDENTS 

2 FOR GAINFUL EMPLOYMENT IN A RECOG3 NIZED OCCUPATION. 

4 ‘‘(a) GAINFUL EMPLOYMENT PROGRAM DEFINED.— 

5 In this Act (including for purposes of sections 101 and 

6 102), the term ‘program of training to prepare students 

7 for gainful employment in a recognized occupation’ (in 

8 this section referred to as ‘training program’) means a 

9 training program that— 

10 ‘‘(1) is in compliance with the performance 

11 metrics (including the eligibility thresholds for each 

12 such metric) established under subsection (b)(1); 

13 ‘‘(2) is in compliance with the notice require14 ments under subsection (b)(1)(C)(i)(II); 

15 ‘‘(3) is otherwise eligible to receive funds under 

16 title IV; and 

17 ‘‘(4) is not a training program that is substan18 tially similar to a training program which, during a 

19 period determined by the Secretary, did not meet 

20 one or more of the performance metrics (such as an 

21 eligibility threshold) described in paragraph (1). 

22 ‘‘(b) SECRETARIAL REQUIREMENTS.— 

23 ‘‘(1) ESTABLISHMENT OF REQUIREMENTS.— 

24 ‘‘(A) IN GENERAL.—Not later than 18 

25 months after the date of enactment of the Stu26 dent and Taxpayer Protection Act, the SecVerDate Sep 11 2014 20:53 Aug 23, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4206.IH H4206

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1 retary shall establish requirements for training 

2 programs to be eligible training programs for 

3 purposes of receiving funds under title IV, 

4 which shall include— 

5 ‘‘(i) establishing performance metrics 

6 (including eligibility thresholds for each 

7 such metric) described in subparagraph 

8 (B); and 

9 ‘‘(ii) developing a disclosure template 

10 and a verification process for disclosures 

11 described in subparagraph (C). 

12 ‘‘(B) PERFORMANCE METRICS.— 

13 ‘‘(i) IN GENERAL.—In establishing the 

14 performance metrics under subparagraph 

15 (A)(i), the Secretary shall, at a minimum, 

16 establish the requirements for a debt-to17 earnings rate that serves the best interests 

18 of students and taxpayers, which shall in19 clude— 

20 ‘‘(I) a methodology for calcu21 lating such debt-to-earnings rate for a 

22 training program, including— 

23 ‘‘(aa) a definition of the co24 hort of individuals on whom such 

25 rate shall be based, who shall be 


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1 selected from the individuals who 

2 were enrolled in such training 

3 program (without regard to 

4 whether the individuals received 

5 a loan for such enrollment); 

6 ‘‘(bb) a determination of the 

7 debt amount for such rate based 

8 on the median annual loan pay9 ment for the loans made under 

10 title IV and the private education 

11 loans received for such enroll12 ment by such cohort; and 

13 ‘‘(cc) a determination of the 

14 earnings amount for such rate 

15 based on the mean or median of 

16 the actual, student-level annual 

17 earnings for such cohort; 

18 ‘‘(II) establishing a process (such 

19 as an appeals process) to authorize 

20 training programs to use alternate 

21 earnings in lieu of the mean or me22 dian of the actual, student-level an23 nual earnings of a cohort; and 

24 ‘‘(III) establishing a threshold 

25 rate that each training program shall 


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1 meet to be eligible to receive funds 

2 under title IV. 

3 ‘‘(ii) EARNINGS DATA.—In deter4 mining the mean or median of the actual, 

5 student-level annual earnings for purposes 

6 of this subparagraph, the Secretary shall 

7 obtain and use the most currently available 

8 Federal data on such earnings. 

9 ‘‘(C) DISCLOSURE TEMPLATE.—The Sec10 retary shall develop— 

11 ‘‘(i) a disclosure template that— 

12 ‘‘(I) is consumer tested; and 

13 ‘‘(II) is used by each training 

14 program to provide enrolled and pro15 spective students (including through 

16 publication on the website of the pro17 gram)— 

18 ‘‘(aa) on an annual basis, 

19 student outcome information for 

20 such program (including the 

21 debt-to-earnings rate and wheth22 er the eligibility threshold for any 

23 other performance metric estab24 lished under subparagraph (A)(i) 

25 has been met); and 


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1 ‘‘(bb) in a case in which the 

2 training program receives a no3 tice of determination under para4 graph (2)(B) that the program 

5 may be ineligible for funds under 

6 title IV, or may receive other 

7 sanctions, not later than 30 days 

8 after receipt of such notice, an 

9 explanation of such notice of de10 termination; and 

11 ‘‘(ii) a process to annually verify that 

12 each training program is providing the dis13 closures required under clause (i)(II). 

14 ‘‘(2) ENFORCEMENT OF REQUIREMENTS.—Not 

15 later than 2 years after the Secretary establishes re16 quirements under paragraph (1), and annually 

17 thereafter, the Secretary shall, with respect to each 

18 training program— 

19 ‘‘(A) calculate the debt-to-earnings rate 

20 and assess performance with respect to any 

21 other metric established under paragraph 

22 (1)(A)(i) for the preceding award year, and 

23 make such information publicly available on the 

24 website of the Department of Education; 


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1 ‘‘(B) issue a notice of determination on 

2 whether the program is meeting the require3 ments established by the Secretary, including 

4 whether the program shall be subject to sanc5 tions (such as loss of eligibility under title IV); 

6 and 

7 ‘‘(C) enforce the applicable sanctions.’’. 

Æ 


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