II 

113TH CONGRESS 

2D SESSION S. 2898 

To provide consumer protections for students. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 18, 2014 

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

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

A BILL 

To provide consumer protections for students. 

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

3 SECTION 1. SHORT TITLE. 

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

5 from Worthless Degrees Act’’. 

6 SEC. 2. CONSUMER PROTECTIONS FOR STUDENTS. 

7 (a) DEFINITIONS.—In this section: 

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


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1 the Federal Government under any of the following 

2 provisions of law: 

3 (A) Title IV of the Higher Education Act 

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

5 (B) Title I of the Workforce Investment 

6 Act of 1998 (29 U.S.C. 2801 et seq.). 

7 (C) The Adult Education and Family Lit8 eracy Act (20 U.S.C. 9201 et seq.). 

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

10 title 38, United States Code. 

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

12 or 1608 of title 10, United States Code. 

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

14 10, United States Code. 

15 (2) INSTITUTION OF HIGHER EDUCATION.—The 

16 term ‘‘institution of higher education’’— 

17 (A) with respect to a program authorized 

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

19 the term in section 102 of the Higher Edu20 cation Act of 1965 (20 U.S.C. 1002); 

21 (B) with respect to a program authorized 

22 under paragraph (1)(B), has the meaning given 

23 the term ‘‘postsecondary educational institu24 tion’’ as defined in section 101 of the Work25 force Investment Act of 1998 (29 U.S.C. 2801); 


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1 (C) with respect to a program authorized 

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

3 the term ‘‘postsecondary educational institu4 tion’’ as defined in section 203 of the Adult 

5 Education and Family Literacy Act (20 U.S.C. 

6 9202); 

7 (D) with respect to a program authorized 

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

9 the term ‘‘educational institution’’ under section 

10 3452 of title 38, United States Code; 

11 (E) with respect to a program authorized 

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

13 institution that awards a degree or certificate 

14 and is located in any State; and 

15 (F) with respect to a program authorized 

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

17 institution that awards a degree or certificate 

18 and is located in any State. 

19 (3) STATE.— 

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

21 in addition to the several States of the United 

22 States, the Commonwealth of Puerto Rico, the 

23 District of Columbia, Guam, American Samoa, 

24 the United States Virgin Islands, the CommonVerDate Sep 11 2014 00:10 Oct 02, 2014 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2898.IS S2898

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1 wealth of the Northern Mariana Islands, and 

2 the freely associated States. 

3 (B) FREELY ASSOCIATED STATES.—The 

4 term ‘‘freely associated States’’ means the Re5 public of the Marshall Islands, the Federated 

6 States of Micronesia, and the Republic of 

7 Palau. 

8 (b) CONSUMER PROTECTIONS.—Notwithstanding 

9 any other provision of law, an institution of higher edu10 cation is not eligible to participate in a Federal financial 

11 assistance program with respect to any program of post12 secondary education or training, including a degree or cer13 tificate program, that is designed to prepare students for 

14 entry into a recognized occupation or profession that re15 quires licensing or other established requirements as a 

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

17 unless, by not later than 1 year after the date of enact18 ment of this Act— 

19 (1) the successful completion of the program 

20 fully qualifies a student, in the Metropolitan Statis21 tical Area and State in which the student resides 

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

23 through advertising or marketing activities or direct 

24 contact with potential students, that a student will 


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1 be prepared to work in the occupation or profession 

2 after successfully completing the program), to— 

3 (A) take any examination required for 

4 entry into the recognized occupation or profes5 sion in the Metropolitan Statistical Area and 

6 State in which the student resides, including 

7 satisfying all Federal, State, or professionally 

8 mandated programmatic and specialized accred9 itation requirements, if any; and 

10 (B) be certified or licensed or meet any 

11 other academically related pre-conditions that 

12 are required for entry into the recognized occu13 pation or profession in the State; and 

14 (2) the institution offering the program pro15 vides timely placement for all of the academically re16 lated pre-licensure requirements for entry into the 

17 recognized occupation or profession, such as clinical 

18 placements, internships, or apprenticeships. 

19 (c) REGULATIONS ON PRE-ACCREDITED PRO20 GRAMS.—The Secretary of Education shall promulgate 

21 regulations on requirements of an institution of higher 

22 education with respect to any program of the institution 

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

24 or requirements of, advertisement of the program to stuVerDate Sep 11 2014 00:10 Oct 02, 2014 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2898.IS S2898

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1 dents. Such regulations shall be consistent with the provi2 sions of subsection (b). 

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

4 shall promulgate regulations that condition eligibility for 

5 an institution of higher education to participate in any 

6 Federal financial assistance program on the institution 

7 signing with each student enrolled in any program of the 

8 institution that is in a pre-accredited status, a loan dis9 charge agreement. 

Æ 


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