I 

113TH CONGRESS 

2D SESSION H. R. 4860 

To clarify that a closure of a branch or campus of an institution of higher 

education may qualify a borrower for loan discharge under the Higher 

Education Act of 1965, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2014 

Ms. HAHN introduced the following bill; which was referred to the Committee 

on Education and the Workforce 

A BILL 

To clarify that a closure of a branch or campus of an 

institution of higher education may qualify a borrower 

for loan discharge under the Higher Education Act of 

1965, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Students 

5 from Failing Institutions Act’’. 


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1 SEC. 2. CLOSURE OF A CAMPUS OR BRANCH OF AN INSTI2 TUTION OF HIGHER EDUCATION. 

3 Section 437(c) of the Higher Education Act of 1965 

4 (20 U.S.C. 1087(c)) is amended— 

5 (1) in paragraph (1), by inserting ‘‘or the clo6 sure of a campus or branch of the institution,’’ after 

7 ‘‘closure of the institution’’; 

8 (2) in paragraph (3)— 

9 (A) by inserting ‘‘or the closing of a cam10 pus or branch of the institution’’ after ‘‘closing 

11 of the institution’’; and 

12 (B) by inserting before the period the fol13 lowing: ‘‘and shall not count towards the stu14 dent’s duration limit for Federal Pell Grants 

15 under section 401(c)(5)’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(6) CAMPUS OR BRANCH CLOSURE.—A bor18 rower who withdraws from an institution not more 

19 than 120 days before the date of closure of the cam20 pus or branch of the institution in which the bor21 rower was enrolled and such closure would have pre22 vented the borrower from completing the program in 

23 which the borrower was enrolled shall, for purposes 

24 of discharging such borrower’s loans under para25 graph (1) and determining the borrower’s eligibility 

26 for additional assistance under this title in accordVerDate Mar 15 2010 02:29 Jun 17, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4860.IH H4860

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1 ance with paragraphs (3) and (4), be considered to 

2 be a student who is unable to complete the program 

3 in which such student is enrolled due to the closure 

4 of the campus or branch of the institution. 

5 ‘‘(7) FEDERAL PELL GRANTS.—In a case of a 

6 borrower that receives a Federal Pell Grant under 

7 subpart 1 of part A of this title for an academic 

8 year for enrollment in a program at a campus or 

9 branch of an institution and such campus or branch 

10 closes, even if for purposes of paragraph (1) the bor11 rower is considered to be able to complete the pro12 gram in which such borrower is enrolled, the bor13 rower may use the remaining amount of the Federal 

14 Pell Grant for such academic year at another insti15 tution. 

16 ‘‘(8) DEFINITION.—For purposes of this sub17 section, the terms ‘campus’ and ‘branch’ include the 

18 term ‘branch campus’ as defined in section 600.2 of 

19 title 34, Code of Federal Regulations (or a successor 

20 regulation).’’. 

Æ 


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