II 

116TH CONGRESS 

1ST SESSION S. 1855 

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

and college completion for all students. 

IN THE SENATE OF THE UNITED STATES 

JUNE 13, 2019 

Mr. COONS (for himself and Ms. ROSEN) introduced the following bill; which 

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

Labor, and Pensions 

A BILL 

To amend the Higher Education Act of 1965 to improve 

college access and college completion for all students. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Persistence In Reshaping Education Act of 2019’’ or the 

6 ‘‘ASPIRE Act’’. 


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1 SEC. 2. IMPROVING COLLEGE ACCESS AND COMPLETION 

2 FOR ALL STUDENTS. 

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

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

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

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

9 this section, in this section: 

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

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

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

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

18 proportion of academic support expenditures 

19 that goes towards instruction, divided by the 

20 number of full-time equivalent students enrolled 

21 in the institution for the academic year. 

22 ‘‘(B) INSTRUCTIONAL EXPENDITURES.— 

23 The term ‘instructional expenditures’— 

24 ‘‘(i) includes— 

25 ‘‘(I) expenditures for the colleges, 

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1 structional divisions of the institution 

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

4 separately budgeted; 

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

9 and remedial and tutorial instruction 

10 conducted by the teaching faculty for 

11 the institution’s students; and 

12 ‘‘(III) expenses for both credit 

13 and non-credit activities; 

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

17 and expenses information technology re18 sources; and 

19 ‘‘(iii) does not include expenses for 

20 academic administration where the primary 

21 function is administration. 

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


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1 ‘‘(i) includes expenses for admissions, 

2 registrar activities, and activities whose 

3 primary purpose is to contribute to the 

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

6 and social development outside the context 

7 of the formal instructional program; and 

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

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

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

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

17 ‘‘(i) expenses of activities and services 

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

20 service, including— 

21 ‘‘(I) the retention, preservation, 

22 and display of educational materials; 

23 ‘‘(II) organized activities that 

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


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1 ‘‘(III) media such as audiovisual 

2 services; 

3 ‘‘(IV) academic administration; 

4 and 

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

7 development and course and cur8 riculum development expenses; and 

9 ‘‘(ii) information technology expenses 

10 related to academic support activities or, if 

11 an institution does not separately budget 

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

14 primary programs shall be applied to this 

15 function and the remainder to institutional 

16 support. 

17 ‘‘(E) FULL-TIME EQUIVALENT STUDENTS

18 ENROLLED.—The term ‘full-time equivalent 

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

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

22 higher education that is a public, 4-year 

23 institution— 


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

4 ‘‘(II) the number of part-time 

5 graduate students enrolled multiplied 

6 by 0.361702; 

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

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

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

13 ‘‘(II) the number of part-time 

14 graduate students enrolled multiplied 

15 by 0.382059; 

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

17 higher education that is a public, 2-year 

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

20 0.335737; and 

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

22 higher education that is not described in 

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


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

2 The term ‘institution of higher education’ means an 

3 institution of higher education (as defined in section 

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

6 ‘‘(A) that predominately awards more 

7 bachelor’s degrees than associate’s degrees and 

8 certificates; and 

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

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

15 Federal Pell Grant. 

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

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

18 eligible to receive a subsidized Federal Direct Staf19 ford Loan but not eligible to receive a Federal Pell 

20 Grant. 

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

22 course’ means a course of study that is determined 

23 by the institution which offers such course to be nec24 essary to help a student be prepared for the pursuit 


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1 of a first undergraduate bachelor’s degree but does 

2 not count for credit toward the degree. 

3 ‘‘(6) UNDERREPRESENTED MINORITY.—The 

4 term ‘underrepresented minority’ means Alaskan 

5 Native, Black (not of Hispanic origin), Hispanic (in6 cluding persons of Mexican, Puerto Rican, Cuban, 

7 and Central or South American origin), Native 

8 American, or Pacific Islander (including Native Ha9 waiian) minority group. 

10 ‘‘(b) IMPROVING COLLEGE ACCESS.— 

11 ‘‘(1) IN GENERAL.— 

12 ‘‘(A) REQUIRED PARTICIPATION.—In order 

13 for an institution of higher education to partici14 pate in any student financial assistance pro15 gram under this title, the institution shall par16 ticipate in the improving college access program 

17 under this subsection. 

18 ‘‘(B) NO CONDITION ON ELIGIBILITY FOR

19 PARTICIPATION FOR RANKING.—Eligibility to 

20 participate in any student financial assistance 

21 program under this title shall not be condi22 tioned on an institution’s position on the rank23 ing completed under this subsection. 

24 ‘‘(2) CALCULATION OF PERCENTAGES OF FED25 ERAL PELL GRANT RECIPIENTS.— 


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

2 2020–2021 and for each succeeding academic 

3 year, the Secretary shall determine, for each in4 stitution of higher education, the percentage of 

5 bachelor’s degree-seeking students who enrolled 

6 at the institution for the first-time in a full7 time capacity for the academic year who re8 ceived a Federal Pell Grant for such academic 

9 year. 

10 ‘‘(B) RANKING.— 

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

12 2020–2021 and for each succeeding aca13 demic year, the Secretary shall rank the 

14 institutions according to the percentages 

15 determined under subparagraph (A). 

16 ‘‘(ii) TRIGGER MARK.—For academic 

17 year 2020–2021 and for each succeeding 

18 academic year, the Secretary shall deter19 mine, based on the rankings under this 

20 subparagraph, the percentage, determined 

21 under subparagraph (A), at which and 

22 above which marks the top 95 percent of 

23 those institutions ranked. 

24 ‘‘(C) SAFE HARBOR REACHED.— 


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1 ‘‘(i) SAFE HARBOR MARK.—For aca2 demic year 2020–2021, the Secretary shall 

3 determine, based on the rankings under 

4 subparagraph (B)(i) for such academic 

5 year, the percentage, determined under 

6 subparagraph (A), at which and above 

7 which marks the top 90 percent of those 

8 institutions ranked. 

9 ‘‘(ii) COMPARISON OF TRIGGER MARK

10 TO SAFE HARBOR MARK.—If the trigger 

11 mark determined under subparagraph 

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

13 the safe harbor mark determined under 

14 clause (i), no institution shall be subject to 

15 the provisions of paragraph (3) for such 

16 academic year. 

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

18 ‘‘(A) NOTIFICATION.— 

19 ‘‘(i) IN GENERAL.—Subject to para20 graph (2)(C)(ii), for academic year 2020– 

21 2021 and for each succeeding academic 

22 year, the Secretary shall notify each insti23 tution of higher education that is in the 

24 bottom 5 percent of those institutions 

25 ranked under paragraph (2)(B)— 


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1 ‘‘(I) that the institution is in 

2 such bottom 5 percent of those insti3 tutions ranked; 

4 ‘‘(II) of the trigger mark de5 scribed in paragraph (2)(B)(ii) that 

6 such institution must meet or rise 

7 above; and 

8 ‘‘(III) that the institution has 90 

9 days to appeal to the Secretary to be 

10 removed from the bottom 5 percent of 

11 those institutions ranked. 

12 ‘‘(ii) APPEAL.—An institution of high13 er education that is in the bottom 5 per14 cent of those institutions ranked under 

15 paragraph (2)(B) for an academic year 

16 may appeal to the Secretary, within 90 

17 days of the notification under clause (i), to 

18 be removed from such bottom 5 percent 

19 ranking if— 

20 ‘‘(I) the Secretary’s calculation of 

21 its ranking is not accurate, and that 

22 recalculation of such ranking would 

23 raise the ranking of the institution 

24 above the bottom 5 percent of those 

25 institutions ranked; or 


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1 ‘‘(II) the institution’s percentage 

2 of all bachelor’s degree-seeking stu3 dents enrolled at the institution who 

4 received a Federal Pell Grant for the 

5 academic year is sufficiently high, as 

6 determined by the Secretary. 

7 ‘‘(iii) AUTOMATIC REMOVAL.—An in8 stitution of higher education that is in the 

9 bottom 5 percent of those institutions 

10 ranked under paragraph (2)(B) for an aca11 demic year but whose average percentage 

12 for the academic year and the 2 preceding 

13 academic years of bachelor’s degree-seek14 ing students who enrolled at the institution 

15 for the first-time in a full-time capacity for 

16 the academic year and the 2 preceding aca17 demic years who received a Federal Pell 

18 Grant for the academic year and the 2 pre19 ceding academic years is at or above the 

20 trigger mark described in paragraph 

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

22 automatically removed from such bottom 5 

23 percent ranking. 

24 ‘‘(B) PLAN.—An institution of higher edu25 cation that is in the bottom 5 percent of those 


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1 institutions ranked under paragraph (2)(B) for 

2 an academic year and not removed under sub3 paragraph (A) shall develop a plan, not later 

4 than 1 year after the date of the notification 

5 under subparagraph (A)(i) and in consultation 

6 with the Secretary, to meet or rise above the 

7 trigger mark described in paragraph (2)(B)(ii) 

8 applicable for the academic year for which the 

9 institution is in the bottom 5 percent of those 

10 institutions ranked and not removed. 

11 ‘‘(C) CALCULATION OF AVERAGE.—For 

12 each institution of higher education that is in 

13 the bottom 5 percent of those institutions 

14 ranked under paragraph (2)(B) for an academic 

15 year and not removed under subparagraph (A), 

16 the Secretary shall— 

17 ‘‘(i) grant the institution a hold harm18 less year for the academic year succeeding 

19 the academic year for which the institution 

20 receives notification under subparagraph 

21 (A)(i); and 

22 ‘‘(ii) determine the average percentage 

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1 seeking students who enrolled at the insti2 tution for the first-time in a full-time ca3 pacity for each of such 3 succeeding aca4 demic years who received a Federal Pell 

5 Grant for each of such 3 succeeding aca6 demic years. 

7 ‘‘(D) FAILURE TO IMPROVE.— 

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clause (ii), if an institution of 

10 higher education has an average percent11 age determined under subparagraph (C)(ii) 

12 that is less than the trigger mark de13 scribed in paragraph (2)(B)(ii) for the aca14 demic year for which the institution is in 

15 the bottom 5 percent of those institutions 

16 ranked under paragraph (2)(B) and not 

17 removed under subparagraph (A) that trig18 gered such determination, the Secretary 

19 shall impose on such institution a penalty 

20 described in subparagraph (E). 

21 ‘‘(ii) DELAY OF PENALTY.— 

22 ‘‘(I) IN GENERAL.—The Sec23 retary may delay imposing a penalty 

24 described in subparagraph (E) with 

25 respect to an institution that has an 


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1 average percentage determined under 

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

3 the trigger mark described in para4 graph (2)(B)(ii) for the academic year 

5 for which the institution is in the bot6 tom 5 percent of those institutions 

7 ranked under paragraph (2)(B) and 

8 not removed under subparagraph (A) 

9 that triggered such determination, but 

10 whose percentage determined for the 

11 most recent academic year is at or 

12 above such trigger mark. 

13 ‘‘(II) PERIOD OF DELAY.—The 

14 Secretary may delay imposing a pen15 alty under subclause (I) for a period 

16 of not more than 2 years. 

17 ‘‘(III) NEW 3-YEAR AVERAGE.— 

18 With respect to an institution for 

19 which the Secretary delays imposing a 

20 penalty under this clause for a period 

21 of not more than 2 years, the Sec22 retary, at the end of such delay pe23 riod, shall determine the average per24 centage over the 3 preceding years of 

25 bachelor’s degree-seeking students 


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1 who enrolled at the institution for the 

2 first-time in a full-time capacity for 

3 each of such 3 preceding academic 

4 years and who received a Federal Pell 

5 Grant for each of such 3 preceding 

6 academic years. If the institution has 

7 an average percentage that is less 

8 than the trigger mark described in 

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

10 year for which the institution is in the 

11 bottom 5 percent of those institutions 

12 ranked under paragraph (2)(B) and 

13 not removed under subparagraph (A) 

14 that triggered such determination, the 

15 Secretary shall impose on such insti16 tution a penalty described in subpara17 graph (E). 

18 ‘‘(E) PENALTIES.— 

19 ‘‘(i) IN GENERAL.—The Secretary 

20 shall impose a penalty under this para21 graph in an amount determined under this 

22 subparagraph. 

23 ‘‘(ii) AMOUNT OF PENALTY.— 

24 ‘‘(I) IN GENERAL.—The penalty 

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1 graph with respect to an institution 

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

3 which the number of additional stu4 dents determined with respect to such 

5 institution under subclause (II) for an 

6 academic year is multiplied by the in7 stitution’s average student-related ex8 penditure for the academic year. 

9 ‘‘(II) NUMBER OF ADDITIONAL

10 STUDENTS TO BE DETERMINED.— 

11 With respect to an institution of high12 er education that is subject to the 

13 penalty under this subparagraph, the 

14 Secretary shall determine the total 

15 number of additional students the in16 stitution would need to enroll over 3 

17 years as Federal Pell Grant recipients 

18 to meet the trigger mark described in 

19 paragraph (2)(B)(ii). Such number 

20 shall be calculated by determining the 

21 percentage equal to subtracting the 

22 average percentage determined under 

23 subparagraph (C)(ii) from the trigger 

24 mark described in paragraph 

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


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1 which the institution is in the bottom 

2 5 percent of those institutions ranked 

3 under paragraph (2)(B) and not re4 moved under subparagraph (A) that 

5 triggered such determination, and 

6 multiplying such determined percent7 age by the number of bachelor’s de8 gree-seeking students who enrolled at 

9 the institution for the first-time in a 

10 full-time capacity for an academic 

11 year over the 3 preceding academic 

12 years. 

13 ‘‘(iii) COLLECTION OF PENALTY

14 FEES.—The Secretary shall— 

15 ‘‘(I) collect penalty fees imposed 

16 under this paragraph not later than 1 

17 year after such penalty is imposed; 

18 and 

19 ‘‘(II) use the fees collected under 

20 subclause (I) to fund the completion 

21 improvement program under sub22 section (d) and the completion bonus 

23 program under subsection (e). 

24 ‘‘(iv) PROHIBITION ON USE OF INSTI25 TUTIONAL NEED-BASED GRANT AID TO PAY


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1 FEES.—An institution of higher education 

2 that is subject to a penalty under this 

3 paragraph may not, in order to pay such 

4 penalty fee— 

5 ‘‘(I) reduce the amount of insti6 tutional need-based grant aid awarded 

7 to students to attend the institution; 

8 or 

9 ‘‘(II) increase tuition or fees. 

10 ‘‘(F) APPEALS.— 

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

12 higher education that is subject to a pen13 alty under this paragraph may appeal the 

14 decision to impose such penalty or the 

15 amount of the penalty to the Secretary. 

16 ‘‘(ii) CONTENT OF APPEAL.—The ap17 peals process shall permit the institution to 

18 demonstrate, to the satisfaction of the Sec19 retary— 

20 ‘‘(I) that there was a miscalcula21 tion of the penalty amount; or 

22 ‘‘(II) that there is some unfore23 seen and extreme circumstance that 

24 should warrant a waiver from such 


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1 penalty or a reduction in the amount 

2 of such penalty. 

3 ‘‘(c) IMPROVING COMPLETION.— 

4 ‘‘(1) IN GENERAL.— 

5 ‘‘(A) IN GENERAL.—In order for an insti6 tution of higher education to participate in any 

7 student financial assistance program under this 

8 title, the institution shall participate in the im9 proving college completion program under this 

10 subsection. 

11 ‘‘(B) ELECTION BY PUBLIC OR OTHER

12 NONPROFIT INSTITUTIONS.—An institution of 

13 higher education that is a public or other non14 profit institution of higher education may elect 

15 for the Secretary not to impose on such institu16 tion a penalty described in paragraph (3)(E), 

17 and the Secretary shall be bound by such elec18 tion. An institution that makes such election 

19 shall be deemed to have participated in the im20 proving college completion program for the pur21 poses of satisfying the requirement of para22 graph (A) and shall not be eligible to receive a 

23 grant under the completion improvement pro24 gram under subsection (d) or the completion 

25 bonus program under subsection (e). 


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1 ‘‘(C) DEFINITION OF INSTITUTION OF

2 HIGHER EDUCATION.—In this subsection, the 

3 term ‘institution of higher education’ means an 

4 institution of higher education (as defined in 

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

6 higher education (as defined in section 

7 102(b))— 

8 ‘‘(i) that predominately awards more 

9 bachelor’s degrees than associate’s degrees 

10 and certificates; and 

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

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

13 equivalent-degree-seeking undergraduate 

14 students. 

15 ‘‘(D) NO CONDITION ON ELIGIBILITY FOR

16 PARTICIPATION FOR RANKING.—Eligibility to 

17 participate in any student financial assistance 

18 program under this title shall not be condi19 tioned on an institution’s position on the rank20 ing completed under this subsection. 

21 ‘‘(2) CALCULATION OF PERCENTAGES OF COM22 PLETION.— 

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

24 2020–2021 and for each succeeding academic 

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1 stitution of higher education that participates 

2 in any program under this title, the percentage 

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

4 students who enrolled at the institution who 

5 graduate within 6 years. 

6 ‘‘(B) RANKING.— 

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

8 2020–2021 and for each succeeding aca9 demic year, the Secretary shall rank the 

10 institutions according to the percentages 

11 determined under subparagraph (A). 

12 ‘‘(ii) TRIGGER MARK.—For academic 

13 year 2020–2021 and for each succeeding 

14 academic year, the Secretary shall deter15 mine, based on the rankings under clause 

16 (i), the percentage, determined under sub17 paragraph (A), at which and above which 

18 marks the top 95 percent of the institu19 tions ranked. 

20 ‘‘(iii) RANKINGS FOR PEER GROUPS

21 OF INSTITUTIONS.— 

22 ‘‘(I) IN GENERAL.—For academic 

23 year 2020–2021 and for each suc24 ceeding academic year, the Secretary 

25 shall rank the institutions according 


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1 to the percentages determined under 

2 subparagraph (A) in each peer group 

3 of institutions described in subclause 

4 (II). 

5 ‘‘(II) PEER GROUPS.—For aca6 demic year 2020–2021 and for each 

7 succeeding academic year, the Sec8 retary shall establish peer groups of 

9 institutions. Each peer group shall in10 clude approximately 10 to 15, but not 

11 less than 3, institutions that are in12 cluded in such group based on similar 

13 institutional characteristics. Such 

14 characteristics shall include the fol15 lowing: 

16 ‘‘(aa) The percentage of 

17 first-time, full-time students en18 rolled at the institution who re19 ceive a Federal Pell Grant. 

20 ‘‘(bb) The average SAT or 

21 ACT score of first-time, full-time 

22 students enrolled at the institu23 tion. 

24 ‘‘(cc) The average high 

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1 time students enrolled at the in2 stitution. 

3 ‘‘(dd) The institution’s aver4 age student-related expenditure. 

5 ‘‘(ee) Other characteristics 

6 that the Secretary determines are 

7 appropriate. 

8 ‘‘(III) PEER GROUP ADJUST9 MENT.—To provide for fair compari10 sons among institutions serving dif11 ferent student populations and insti12 tutional resources, an institution that 

13 is in the bottom 5 percent of the insti14 tutions ranked under clause (i) but in 

15 the top two-thirds of institutions 

16 ranked in the institution’s peer group, 

17 as determined under subclause (II), 

18 shall be removed from the bottom 5 

19 percent of the institutions ranked 

20 under clause (i). The Secretary shall 

21 not impose on such an institution a 

22 penalty described in paragraph 

23 (3)(E). 

24 ‘‘(C) SAFE HARBOR REACHED.— 


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1 ‘‘(i) SAFE HARBOR MARK.—For aca2 demic year 2020–2021, the Secretary shall 

3 determine, based on the rankings under 

4 subparagraph (B)(i) for such academic 

5 year, the percentage, determined under 

6 subparagraph (A), at which and above 

7 which marks the top 90 percent of those 

8 institutions ranked. 

9 ‘‘(ii) COMPARISON OF TRIGGER MARK

10 TO SAFE HARBOR MARK.—If the trigger 

11 mark determined under subparagraph 

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

13 the safe harbor mark determined under 

14 clause (i), no institution shall be subject to 

15 the provisions of paragraph (3) for such 

16 academic year. 

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

18 ‘‘(A) IN GENERAL.— 

19 ‘‘(i) IN GENERAL.—Subject to para20 graph (2)(C)(ii), for academic year 2020– 

21 2021 and for each succeeding academic 

22 year, the Secretary shall notify each insti23 tution of higher education that is in the 

24 bottom 5 percent of those institutions 

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


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1 removed under paragraph 

2 (2)(B)(iii)(III))— 

3 ‘‘(I) that the institution is in 

4 such bottom 5 percent of those insti5 tutions ranked for the academic year; 

6 ‘‘(II) of the applicable trigger 

7 mark described in paragraph 

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

9 meet or rise above; and 

10 ‘‘(III) that the institution has 90 

11 days to appeal to the Secretary to be 

12 removed from the bottom 5 percent of 

13 those institutions ranked. 

14 ‘‘(ii) APPEAL.—An institution of high15 er education that is in the bottom 5 per16 cent of those institutions ranked under 

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

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

19 academic year may appeal to the Sec20 retary, within 90 days of the notification 

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

22 bottom 5 percent ranking if the Secretary’s 

23 calculation of its ranking is not accurate, 

24 and that recalculation of such ranking 

25 would raise the ranking of the institution 


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1 above the bottom 5 percent of those insti2 tutions ranked. 

3 ‘‘(iii) AUTOMATIC REMOVAL.—An in4 stitution of higher education that is in the 

5 bottom 5 percent of those institutions 

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

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

8 for an academic year but whose average 

9 percentage for the academic year and the 

10 2 preceding academic years of first-time, 

11 full-time bachelor’s degree-seeking students 

12 who enrolled at the institution who grad13 uate within 6 years is at or above the trig14 ger mark described in paragraph (2)(B)(ii) 

15 for the academic year, shall be automati16 cally removed from such bottom 5 percent 

17 ranking. 

18 ‘‘(B) PLAN.—For academic year 2020– 

19 2021 and for each fifth succeeding academic 

20 year, an institution of higher education that is 

21 in the bottom 5 percent of those institutions 

22 ranked under paragraph (2)(B) and not re23 moved under paragraph (2)(B) or subparagraph 

24 (A) shall develop a plan, not later than 1 year 

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1 graph (A)(i) and in consultation with the Sec2 retary, to meet or rise above the trigger mark 

3 described in paragraph (2)(B)(ii), applicable for 

4 the academic year for which this institution is 

5 in the bottom 5 percent of those institutions 

6 ranked under paragraph (2)(B) and not re7 moved under paragraph (2)(B) or subparagraph 

8 (A) that triggered such determination. 

9 ‘‘(C) CALCULATION OF AVERAGE.— 

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

11 2020–2021 and for each fifth succeeding 

12 academic year, for each institution of high13 er education that is in the bottom 5 per14 cent of those institutions ranked under 

15 paragraph (2)(B) and not removed under 

16 paragraph (2)(B) or subparagraph (A) for 

17 an academic year, the Secretary shall— 

18 ‘‘(I) grant the institution 2 hold 

19 harmless years for the academic years 

20 succeeding the academic year for 

21 which the institution receives notifica22 tion under subparagraph (A)(i); and 

23 ‘‘(II) determine the average per24 centage over the 3 succeeding aca25 demic years (as determined under 


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1 clause (ii)) following the hold harm2 less academic years described in 

3 clause (i) of first-time, full-time bach4 elor’s degree-seeking students who en5 rolled at the institution who graduate 

6 within 6 years. 

7 ‘‘(ii) UNDER-RESOURCED YEARS.—In 

8 determining the 3 succeeding academic 

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

10 shall skip any academic year that succeeds 

11 an academic year for which less than 

12 $25,000,000 is collected under subsection 

13 (b)(3)(E). 

14 ‘‘(D) FAILURE TO IMPROVE.— 

15 ‘‘(i) IN GENERAL.—Except as pro16 vided in clause (ii) or paragraph (1)(B), if 

17 an institution of higher education has an 

18 average percentage determined under sub19 paragraph (C)(i)(II) that is less than the 

20 applicable trigger mark described in para21 graph (2)(B)(ii), the Secretary shall im22 pose on such institution a penalty de23 scribed in subparagraph (E). 

24 ‘‘(ii) DELAY OF PENALTY.— 


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1 ‘‘(I) IN GENERAL.—The Sec2 retary may delay imposing a penalty 

3 described in subparagraph (E) with 

4 respect to an institution that has an 

5 average percentage determined under 

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

7 than the applicable trigger mark de8 scribed in paragraph (2)(B)(ii), but 

9 whose percentage determined for the 

10 most recent academic year is at or 

11 above such trigger mark. 

12 ‘‘(II) PERIOD OF DELAY.—The 

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

15 of not more than 2 years. 

16 ‘‘(III) NEW AVERAGE.—With re17 spect to an institution for which the 

18 Secretary delays imposing a penalty 

19 under this clause for a period of not 

20 more than 2 years, the Secretary, at 

21 the end of such delay period, shall de22 termine the average percentage over 

23 the 3 preceding years of first-time, 

24 full-time bachelor’s degree-seeking 

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1 tion who graduate within 6 years. If 

2 the institution has an average per3 centage that is less than the trigger 

4 mark described in paragraph 

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

6 on such institution a penalty described 

7 in subparagraph (E). 

8 ‘‘(E) PENALTIES.— 

9 ‘‘(i) FIRST PENALTY YEAR.— 

10 ‘‘(I) IN GENERAL.—Beginning 

11 with the fifth academic year after 

12 which penalty fees are collected under 

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

14 higher education that is subject to a 

15 penalty under this paragraph— 

16 ‘‘(aa) that is a proprietary 

17 institution of higher education 

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

19 shall pay to the Secretary a 

20 $1,000,000 penalty; and 

21 ‘‘(bb) that is not a propri22 etary institution of higher edu23 cation (as defined in section 

24 102(b)), shall pay to the Sec25 retary for an academic year an 


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1 amount equal to 25 percent of 

2 the total amount of funds made 

3 available under subsection (d) to 

4 the institution during the 4 aca5 demic years preceding the aca6 demic year for which the penalty 

7 is due under this paragraph. 

8 ‘‘(II) USE OF PENALTIES.—The 

9 Secretary shall use the penalty fees 

10 under this clause to fund the comple11 tion improvement program under sub12 section (d) and the completion bonus 

13 program under subsection (e). 

14 ‘‘(ii) SECOND PENALTY YEAR.—One 

15 year after the first academic year for 

16 which an institution of higher education 

17 that is not a proprietary institution of 

18 higher education (as defined in section 

19 102(b)) pays a penalty under clause 

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

21 the average percentage for such year after 

22 such first academic year and the 2 pre23 ceding academic years of first-time, full24 time bachelor’s degree-seeking students 

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1 uate within 6 years. If such average per2 centage is less than the trigger mark de3 scribed in paragraph (2)(B)(ii) for such 

4 year after such first academic year, the in5 stitution of higher education shall pay to 

6 the Secretary for such year after such first 

7 academic year an amount equal to 40 per8 cent of the total amount of funds made 

9 available under subsection (d) to the insti10 tution during the 5 academic years pre11 ceding the academic year for which the 

12 penalty is due under this clause. The Sec13 retary shall use such penalty fees to fund 

14 the completion improvement program 

15 under subsection (d) and the completion 

16 bonus program under subsection (e). 

17 ‘‘(iii) THIRD PENALTY YEAR.—Two 

18 years after the first academic year for 

19 which an institution of higher education 

20 that is not a proprietary institution of 

21 higher education (as defined in section 

22 102(b)) pays a penalty under clause 

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

24 the average percentage for such second 

25 year after such first academic year and the 


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1 2 preceding academic years of first-time, 

2 full-time bachelor’s degree-seeking students 

3 who enrolled at the institution who grad4 uate within 6 years. If such average per5 centage is less than the trigger mark de6 scribed in paragraph (2)(B)(ii) for such 

7 second year after such first academic year, 

8 the institution of higher education shall 

9 pay to the Secretary for such second year 

10 after such first academic year an amount 

11 equal to 50 percent of the total amount of 

12 funds made available under subsection (d) 

13 to the institution during the 6 academic 

14 years preceding the academic year for 

15 which the penalty is due under this clause. 

16 The Secretary shall use such penalty fees 

17 to fund the completion improvement pro18 gram under subsection (d) and the comple19 tion bonus program under subsection (e). 

20 ‘‘(iv) PROHIBITIONS.—An institution 

21 of higher education that is subject to a 

22 penalty under this subparagraph— 

23 ‘‘(I) shall ensure that students 

24 enrolled at the institution receive the 

25 full amount of funding under this title 


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1 they would otherwise have received 

2 had the institution not been subject to 

3 such penalty; and 

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

5 the penalty fee— 

6 ‘‘(aa) reduce the amount of 

7 institutional need-based grant aid 

8 awarded to students to attend 

9 the institution; and 

10 ‘‘(bb) raise tuition or fees. 

11 ‘‘(v) WAIVER.—The Secretary may 

12 waive or reduce a penalty under this sub13 paragraph if the Secretary determines such 

14 a waiver is necessary to avoid extreme 

15 hardship for the students enrolled at the 

16 institution of higher education on which 

17 the penalty would be imposed. 

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

19 may allow an institution of higher edu20 cation that owes a penalty under this sub21 paragraph to enter into a payment plan to 

22 pay such penalty amount. 

23 ‘‘(F) APPEALS.— 

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

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1 alty under this paragraph may appeal the 

2 decision to impose such penalty to the Sec3 retary. 

4 ‘‘(ii) CONTENT OF APPEAL.—The ap5 peals process shall permit the institution to 

6 demonstrate, to the satisfaction of the Sec7 retary that there is some unforeseen and 

8 extreme circumstance that should warrant 

9 a waiver from such penalty, a reduction in 

10 the amount of such penalty, or removal of 

11 the institution from the bottom 5 percent 

12 of those institutions ranked under para13 graph (2)(B). 

14 ‘‘(d) COMPLETION IMPROVEMENT PROGRAM.— 

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

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

17 completion improvement program to award grants to 

18 eligible institutions of higher education to support 

19 reforms to improve completion rates. 

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

21 of higher education is eligible to receive a grant 

22 under this subsection if the institution— 

23 ‘‘(A) is a public or other nonprofit institu24 tion of higher education that is in the bottom 


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1 5 percent of those institutions ranked under 

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

3 ‘‘(B) has not been removed from the bot4 tom 5 percent of those institutions ranked pur5 suant to paragraph (2)(B)(iii)(III) or (3)(A) of 

6 subsection (c); and 

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

8 subsection (c)(1)(B). 

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

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

11 under this subsection, the Secretary shall deter12 mine a grant amount for each eligible institu13 tion according to the formula under subpara14 graph (B). 

15 ‘‘(B) GRANT AMOUNT FORMULA.— 

16 ‘‘(i) IN GENERAL.—Except as pro17 vided in clause (iii), the grant amount for 

18 an eligible institution described in para19 graph (2) for a fiscal year shall be equal 

20 to the Pell weight of such institution for 

21 the fiscal year, determined under clause 

22 (ii), multiplied by the amount available 

23 under paragraph (5) for such fiscal year. 

24 ‘‘(ii) PELL WEIGHT.— 


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1 ‘‘(I) IN GENERAL.—The Pell 

2 weight of an eligible institution for a 

3 fiscal year shall be equal to a percent4 age that is determined by dividing the 

5 institution’s Pell enrollment deter6 mined under subclause (II) for the fis7 cal year by the total Pell enrollment 

8 determined under subclause (III) for 

9 the fiscal year. 

10 ‘‘(II) INSTITUTION’S PELL EN11 ROLLMENT.—An eligible institution’s 

12 Pell enrollment for a fiscal year shall 

13 be equal to the percentage of bach14 elor’s degree-seeking students enrolled 

15 at the institution for the academic 

16 year that ended immediately pre17 ceding such fiscal year who received a 

18 Federal Pell Grant for such academic 

19 year. 

20 ‘‘(III) TOTAL PELL ENROLL21 MENT.—The total Pell enrollment for 

22 a fiscal year shall be equal to the sum 

23 of the percentages of bachelor’s de24 gree-seeking students enrolled at each 

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1 graph (2), for the academic year that 

2 ended immediately preceding such fis3 cal year who received a Federal Pell 

4 Grant for such academic year. 

5 ‘‘(iii) MAXIMUM GRANT AMOUNT.— 

6 The maximum grant amount for an eligible 

7 institution described in paragraph (2) for a 

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

9 institution may choose to receive a grant 

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

11 amounts available under paragraph (5) for 

12 such fiscal year that are remaining after 

13 awarding grants in accordance with this 

14 subparagraph shall be used to carry out 

15 the completion bonus program under sub16 section (e). 

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

18 education that receives a grant under this subsection 

19 shall use the grant funds for reforms and practices 

20 that are part of the improvement plan of the institu21 tion, as described under subsection (c)(3)(B)(i), 

22 which may include the following: 

23 ‘‘(A) Increasing funds available for Federal 

24 Work-Study Programs for undergraduate stu25 dents. 


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1 ‘‘(B) Increasing need-based institutional 

2 aid to students who are eligible for Federal Pell 

3 Grants. 

4 ‘‘(C) Enhancing academic advising and 

5 student support services. 

6 ‘‘(D) Expanding accelerated learning op7 portunities. 

8 ‘‘(E) Improving remedial course offerings. 

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

10 to increase college completion rates. 

11 ‘‘(G) Enhancing regular and proactive ca12 reer advising and loan counseling services, in13 cluding post-enrollment services. 

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

15 ‘‘(i) between non-low-income or work16 ing class students and low-income or work17 ing class students; and 

18 ‘‘(ii) between non-underrepresented 

19 minority students and underrepresented 

20 minority students. 

21 ‘‘(5) AVAILABLE FUNDS.—Funds shall be avail22 able to carry out this subsection from the penalty 

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

24 (c)(3)(E). 

25 ‘‘(e) COMPLETION BONUS PROGRAM.— 


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

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

3 completion bonus program to award grants on a 

4 competitive basis to eligible institutions of higher 

5 education to support reforms to improve completion 

6 rates. 

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

8 of higher education is eligible to receive a grant 

9 under this subsection if the institution— 

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

11 those institutions ranked under subsection 

12 (c)(2)(B); and 

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

14 those institutions ranked under subsection 

15 (b)(2)(B). 

16 ‘‘(3) APPLICATION AND PRIORITY.— 

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

18 that desires a grant under this subsection shall 

19 submit an application to the Secretary at such 

20 time, in such manner, and containing such in21 formation as the Secretary may require. 

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

23 awarding grants under this subsection, the Sec24 retary— 


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1 ‘‘(i) may consider an eligible institu2 tion’s affordability, student loan repayment 

3 rate, and other factors; and 

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

5 institution that is a part B institution (as 

6 defined in section 322) or a minority-serv7 ing institution (as described in section 

8 371(a)). 

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

10 that receives a grant under this subsection shall use 

11 the grant funds for reforms and practices to improve 

12 completion rates, which may include the following: 

13 ‘‘(A) Increasing funds available for Federal 

14 Work-Study Programs for undergraduate stu15 dents. 

16 ‘‘(B) Increasing need-based institutional 

17 aid to students who are eligible for Federal Pell 

18 Grants. 

19 ‘‘(C) Enhancing academic advising and 

20 student support services. 

21 ‘‘(D) Expanding accelerated learning op22 portunities. 

23 ‘‘(E) Improving remedial course offerings. 

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

25 to increase college completion rates. 


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1 ‘‘(G) Enhancing regular and proactive ca2 reer advising and loan counseling services, in3 cluding post-enrollment services. 

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

5 ‘‘(i) between non-low-income or work6 ing class students and low-income or work7 ing class students; and 

8 ‘‘(ii) between non-underrepresented 

9 minority students and underrepresented 

10 minority students. 

11 ‘‘(I) Enhancing the quality of the institu12 tion’s academic programs. 

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

15 the penalty fees collected under subsections 

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

17 grants are awarded for the completion improvement 

18 program under subsection (d). 

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

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

21 non-financial rewards to institutions of higher edu22 cation that have a proven record of making college 

23 more affordable and increasing college access and 

24 success for low-income or working class students and 

25 moderate-income students. 


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1 ‘‘(2) INSTITUTIONAL ELIGIBILITY.—An institu2 tion of higher education is eligible for a non-finan3 cial reward under this subsection for an academic 

4 year if— 

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

6 bachelor’s degree-seeking students who enrolled 

7 at the institution for the academic year who re8 ceived a Federal Pell Grant for such academic 

9 year falls within the top 50 percent of ranked 

10 institutions, as determined by the Secretary for 

11 the academic year; 

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

13 bachelor’s degree-seeking students who enrolled 

14 at the institution who graduate within 6 years 

15 falls within the top 25 percent of ranked insti16 tutions, as determined by the Secretary for the 

17 academic year; and 

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

19 investigation for a sanction for an academic or 

20 financial irregularity. 

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

22 education that desires to receive a non-financial re23 ward under this subsection shall submit an applica24 tion to the Secretary at such time, in such manner, 


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1 and containing such information as the Secretary 

2 may require. 

3 ‘‘(4) PRIORITY.—Priority in awarding non-fi4 nancial rewards under this subsection shall go to in5 stitutions of higher education that have small or di6 minishing gaps in the completion rates— 

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

8 class students and low-income or working class 

9 students; and 

10 ‘‘(B) between non-underrepresented minor11 ity students and underrepresented minority stu12 dents. 

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

14 rewards under this subsection may include the fol15 lowing: 

16 ‘‘(A) Reporting less frequently and avoid17 ing duplicative reporting requirements. 

18 ‘‘(B) Extra points in Department grant 

19 competitions for which institutions of higher 

20 education are eligible entities. 

21 ‘‘(C) Waiving the multiple disbursement 

22 rule or disbursement delays. 

23 ‘‘(D) Preferable status for experimental 

24 sites. 


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1 ‘‘(g) BEST PRACTICES.—The Secretary shall estab2 lish a publicly available electronic database identifying 

3 best practices— 

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

5 were in the bottom 5 percent of those institutions 

6 ranked under the improving college access program 

7 under subsection (b) or the improving college com8 pletion program under subsection (c) for academic 

9 year 2017–2018 or for any succeeding academic 

10 year and that have improved their ranking; 

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

12 awarded grants under the completion bonus program 

13 under subsection (e) to support reforms to improve 

14 completion rates; and 

15 ‘‘(3) that the Secretary has determined in car16 rying out this section. 

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

18 Nothing in this section shall be construed to affect ac19 countability provisions under other sources of law. 

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

21 are authorized to be appropriated to carry out this section 

22 such sums as may be necessary.’’. 

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

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

25 Education shall submit a report to Congress that provides 


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1 recommendations on ways to expand section 493E of the 

2 Higher Education Act of 1965, as added by subsection 

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

4 seeking students, as well as other institutions of higher 

5 education not covered by such section. 

Æ 


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