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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2954 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2954

  To improve the Higher Education Act of 1965, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 20, 2014

  Mr. Harkin introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
  To improve the Higher Education Act of 1965, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Higher Education Affordability 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. General effective date.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Graduate medical schools; postsecondary career and technical 
                            education institutions.
Sec. 102. 85-15 revenue source requirement for proprietary 
                            institutions.
Sec. 103. Definitions.
Sec. 104. Authorization of appropriations for drug and alcohol abuse 
                            prevention.
Sec. 105. Mandatory financial aid award letter.
Sec. 106. Code of conduct in affiliated consumer financial products or 
                            services.
Sec. 107. Restriction on marketing with Federal educational assistance 
                            funds.
Sec. 108. Minimum standards for net price calculators.
Sec. 109. Benefits for borrowers who are members of the Armed Forces.
Sec. 110. Data improvements for college navigator.
Sec. 111. College scorecard.
Sec. 112. Reporting requirements.
Sec. 113. In-State tuition rates for certain individuals.
Sec. 114. State higher education information system pilot program.
Sec. 115. Responsibilities of FSA Ombudsman; addition of point of 
                            contact for military families and homeless 
                            children.
Sec. 116. Responsibilities of covered institutions, institution-
                            affiliated organizations, and lenders.
Sec. 117. Establishment of complaint resolution and tracking system.
Sec. 118. Proprietary education oversight coordination committee.
                TITLE II--IMPROVING EDUCATOR PREPARATION

Sec. 201. Improving educator preparation.
                      TITLE III--INSTITUTIONAL AID

Sec. 301. Rule of construction.
Sec. 302. Program purpose.
Sec. 303. Duration of grant.
Sec. 304. American Indian tribally controlled colleges and 
                            universities.
Sec. 305. Alaska Native and Native Hawaiian-serving institutions.
Sec. 306. Predominantly Black Institutions.
Sec. 307. Native American-serving nontribal institutions.
Sec. 308. Asian American and Native American Pacific Islander-serving 
                            institutions.
Sec. 309. Native American education tuition cost share.
Sec. 310. Grants to institutions.
Sec. 311. Allotments to institutions.
Sec. 312. Professional or graduate institutions.
Sec. 313. Applications for assistance.
Sec. 314. Limitations on Federal insurance for bonds issued by the 
                            designated bonding authority.
Sec. 315. Authorization of appropriations.
                      TITLE IV--STUDENT ASSISTANCE

                       Part A--Grants to Students

                     subpart 1--federal pell grants

Sec. 401. Year-round Federal Pell Grants; extension of Federal Pell 
                            Grant inflation adjustments.
Sec. 401A. College opportunity and graduation bonus demonstration 
                            program.
        subpart 2--early awareness of college financing options

Sec. 403. Federal TRIO programs authorization.
Sec. 404. Postbaccalaureate achievement program authorization.
Sec. 405. Gaining early awareness and readiness for undergraduate 
                            programs authorization.
Sec. 405A. Early awareness of college financing options.
Sec. 405B. Awareness of postsecondary education financing options for 
                            adult learners.
      subpart 3--federal supplemental education opportunity grants

Sec. 407. Authorization of appropriations.
Sec. 408. Institutional share of Federal supplemental educational 
                            opportunity grants.
Sec. 409. Federal supplemental educational opportunity grants 
                            allocation of funds.
           subpart 4--american dream grants and leap program

Sec. 415. Purpose; appropriations authorized.
Sec. 416. American Dream grants.
subpart 5--reauthorization of appropriations for other part a programs.

Sec. 417. Reauthorization of appropriations for other part A programs.
             Part B--Federal Family Education Loan Program

Sec. 421. Simplification of income-based repayment options for 
                            federally insured student loans.
Sec. 422. Improvements to military loan deferment; clarification of 
                            SCRA protections; simplification of income-
                            based repayment options.
Sec. 423. Simplification of income-based repayment options for Federal 
                            Consolidation Loans.
Sec. 424. Reasonable collection costs and rehabilitation payments.
Sec. 425. FFEL loan forgiveness for certain American Indian educators.
Sec. 426. Reauthorization of appropriations for certain loan 
                            forgiveness programs.
Sec. 427. Improvements to credit reporting for Federal student loans.
Sec. 428. Reduced duplication in student loan servicing.
Sec. 429. Improved determination of cohort default rates; publication 
                            of default prevention plan.
Sec. 430. Improved disability determinations.
Sec. 431. Treatment of borrowers falsely certified as eligible to 
                            borrow due to identity theft.
                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Federal work study allocation of funds.
Sec. 443. Institutional share of Federal work study funds.
Sec. 444. Additional funds to conduct community service work-study 
                            programs.
Sec. 445. Work colleges.
                  Part D--Federal Direct Loan Program

Sec. 451. Elimination of origination fees and other amendments to terms 
                            and conditions of loans.
Sec. 452. Improved student loan servicing and debt collection 
                            practices.
Sec. 453. Funds for administrative expenses.
Sec. 454. Federal Direct Loan forgiveness for certain American Indian 
                            educators.
                     Part E--Federal Perkins Loans

Sec. 461. Appropriations authorized.
Sec. 462. Perkins allocation of funds.
Sec. 463. Institutional contributions for Perkins.
Sec. 464. Simplification of military deferment eligibility.
Sec. 465. Forgiveness of loans for eligible military service.
Sec. 466. Distribution of assets from student loan funds.
                         Part F--Need Analysis

Sec. 471. Increased income protection allowance for dependent students.
Sec. 472. Increased income protection allowance for independent 
                            students without dependents other than a 
                            spouse.
Sec. 473. Increased income protection allowance for independent 
                            students with dependents other than a 
                            spouse.
Sec. 474. Updated tables and amounts for income protection allowance.
Sec. 475. Prior prior year; definition of independent student.
                       Part G--General Provisions

Sec. 481. Definitions.
Sec. 482. Standard notification format for delinquent borrowers; 
                            explanation of benefits of Federal loans.
Sec. 483. Institutional financial aid award letter.
Sec. 483A. Consumer testing.
Sec. 483B. Loan repayment rate and speed-based repayment rate.
Sec. 483C. One-time FAFSA pilot program.
Sec. 484. Ability to benefit.
Sec. 485. Reasonable collection costs in State court judgments.
Sec. 486. Improved disclosures, counseling, and financial assistance 
                            information for students.
Sec. 487. Improvements to National Student Loan Data System.
Sec. 488. Competency-based education demonstration program.
Sec. 489. Program participation agreements.
Sec. 490. Civil penalties.
Sec. 491. Advisory Committee on Student Financial Assistance.
Sec. 492. Income-based repayment.
Sec. 493. Extending the protections for student loans for active duty 
                            borrowers.
Sec. 493A. Disbursement of credit balance.
Sec. 493B. Disclosure of cohort rates based on repayment plan and 
                            deferment status.
Sec. 493C. Institutional reporting requirements.
                       Part H--Program Integrity

Sec. 496. Public disclosure of finalized accreditation documents; 
                            prohibition on pre-dispute arbitration 
                            mandates.
Sec. 497. Improved targeting of program reviews.
Sec. 498. Program review and data.
        Part I--State-Federal College Affordability Partnership

Sec. 499. State-Federal college affordability partnership.
                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Rule of construction.
Sec. 502. Authorized activities under part A of title V.
Sec. 503. Duration of grants under title V.
Sec. 504. Authorized activities under part B of title V.
Sec. 505. Duration of grants under part B of title V.
Sec. 506. Waiver authority; reporting requirement; technical 
                            assistance.
Sec. 507. Authorizations of appropriations for developing institutions.
               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Technical and conforming amendment.
Sec. 602. Authorization of appropriations for international and foreign 
                            language studies.
Sec. 603. Authorization of appropriations for business and 
                            international education programs.
Sec. 604. Authorization of appropriations for the Institute for 
                            International Public Policy.
Sec. 605. Authorization of appropriations for the science and 
                            technology advanced foreign language 
                            education grant program.
       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Authorization of appropriations for the Jacob K. Javits 
                            Fellowship Program.
Sec. 702. Authorization of appropriations for graduate assistance in 
                            areas of national need.
Sec. 703. Authorization of appropriations for the Thurgood Marshall 
                            Legal Educational Opportunity Program.
Sec. 704. Authorization of appropriations for masters degree programs 
                            at historically Black colleges and 
                            universities and Predominantly Black 
                            Institutions.
Sec. 705. Authorization of appropriations for the fund for improvement 
                            of postsecondary education.
Sec. 706. Correctly recognizing educational achievements to empower 
                            graduates.
Sec. 707. Authorization of appropriations for demonstration projects to 
                            support postsecondary faculty, staff, and 
                            administrators in educating students with 
                            disabilities.
Sec. 708. Authorization of appropriations for transition programs for 
                            students with intellectual disabilities.
Sec. 709. Authorization of appropriations for the Commission on 
                            Accessible Materials and programs to 
                            support improved access to materials.
Sec. 710. Authorization of appropriations for the National Technical 
                            Assistance Center; Coordinating Center.
Sec. 711. First in the world competitive grant program.
Sec. 712. Dual enrollment and early college high school programs.
Sec. 713. Minority-serving institutions innovation fund.
Sec. 714. State competitive grant program for reforms to improve higher 
                            education persistence and completion.
                    TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Reorganization.
Sec. 802. Authorization of appropriations for Project Grad.
Sec. 803. Authorization of appropriations for the mathematics and 
                            science scholars program.
Sec. 804. Community college and industry partnerships program.
Sec. 805. Authorization of appropriations for capacity for nursing 
                            students and faculty.
Sec. 806. Authorization of appropriations for Teach for America.
Sec. 807. Authorization of appropriations for the Patsy T. Mink 
                            Fellowship Program.
Sec. 808. Authorization of appropriations for improving science, 
                            technology, engineering, and mathematics 
                            education with a focus on Alaska Native and 
                            Native Hawaiian Students.
Sec. 809. Authorization of appropriations for student safety and campus 
                            emergency management.
Sec. 810. Authorization of appropriations for the education disaster 
                            and emergency relief program.
Sec. 811. Authorization of appropriations for the jobs to careers 
                            program.
Sec. 812. Authorization of appropriations for rural development grants 
                            for rural-serving colleges and 
                            universities.
Sec. 813. Authorization of appropriations for training for realtime 
                            writers.
Sec. 814. Authorization of appropriations for centers of excellence for 
                            veteran student success.
Sec. 815. Authorization of appropriations for path to success.
Sec. 816. Authorization of appropriations for the Henry Kuualoha Giugni 
                            Kupuna Memorial Archives.
Sec. 817. Appropriations for masters degree programs.
Sec. 818. Appropriations for postbaccalaureate programs.
Sec. 819. Tyler Clementi Program.
TITLE IX--HIGHER EDUCATION OPPORTUNITIES AND SUPPORTS FOR STUDENTS WITH 
                              DISABILITIES

Sec. 901. Higher education opportunities and supports for students with 
                            disabilities.
                   TITLE X--AMENDMENTS TO OTHER LAWS

                      Part A--Truth in Lending Act

                         subpart 1--definitions

Sec. 1010. Definitions.
             subpart 2--amendments to truth in lending act

Sec. 1011. Exempted transactions.
Sec. 1012. Mandatory certification.
Sec. 1013. Civil liability.
Sec. 1014. Definition of private education loan.
Sec. 1015. Revenue sharing and disclosure of affiliation.
Sec. 1016. Improved consumer protections for student loan servicing.
                   subpart 3--regulations and reports

Sec. 1017. Implementation of regulations.
Sec. 1018. Report on credit reporting and student lending.
Sec. 1019. Ombudsman report on private education loan market.
                 Part B--Internal Revenue Code of 1986

Sec. 1022. Information sharing authority relating to income-based 
                            repayment.
               Part C--Title 11 of the United States Code

Sec. 1031. Private loan discharge in bankruptcy.
                Part D--Servicemembers Civil Relief Act

Sec. 1041. Modification of limitation on rate of interest on student 
                            loans during and immediately after period 
                            of military service.
              Part E--United States Institute of Peace Act

Sec. 1051. United States Institute of Peace Act.
        TITLE XI--REPORTS, STUDIES, AND MISCELLANEOUS PROVISIONS

Sec. 1101. Consumer protections for students.
Sec. 1102. Longitudinal study of the effectiveness of student loan 
                            counseling.
Sec. 1103. Recommendations for student loan counseling.
Sec. 1104. Working group on improvement of resources available to 
                            members of the Armed Forces and their 
                            spouses in using tuition assistance 
                            programs of the Department of Defense.
Sec. 1105. Study on public service loan forgiveness.
Sec. 1106. Longitudinal study of the causes of student loan default.
Sec. 1107. Institutional Risk-Sharing Commission.
Sec. 1108. GAO report on educational attainment of homeless children 
                            and youth and foster care children and 
                            youth.
Sec. 1109. American Dream Accounts.
Sec. 1110. Study on the impact of Federal financial aid changes on 
                            graduate students.

SEC. 3. 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.).

SEC. 4. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this Act or the amendments made by 
this Act, this Act and the amendments made by this Act shall take 
effect on the date of enactment of this Act.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. GRADUATE MEDICAL SCHOOLS; POSTSECONDARY CAREER AND TECHNICAL 
              EDUCATION INSTITUTIONS.

    (a) In General.--Section 102 (20 U.S.C. 1002) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(B), by striking ``vocational'' 
                and inserting ``career and technical education''; and
                    (B) in paragraph (2)(A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``part D of title IV unless--'' and 
                        inserting ``part D of title IV unless the 
                        school meets 1 of the following 
                        requirements:'';
                            (ii) by striking clause (i) and inserting 
                        the following:
                            ``(i) Graduate medical school.--
                                    ``(I) In general.--In the case of a 
                                graduate medical school located outside 
                                the United States--
                                            ``(aa)(AA) not less than 60 
                                        percent of those enrolled in, 
                                        and not less than 60 percent of 
                                        the graduates of, such graduate 
                                        medical school located outside 
                                        the United States were not 
                                        persons described in section 
                                        484(a)(5) in the year preceding 
                                        the year for which a student is 
                                        seeking a loan under part D of 
                                        title IV; and
                                            ``(BB) not less than 75 
                                        percent of the individuals who 
                                        were nationals of the United 
                                        States who were students or 
                                        graduates of the graduate 
                                        medical school located outside 
                                        the United States or Canada 
                                        taking the examinations 
                                        administered by the Educational 
                                        Commission for Foreign Medical 
                                        Graduates received a passing 
                                        score in the year preceding the 
                                        year for which a student is 
                                        seeking a loan under part D of 
                                        title IV; or
                                            ``(bb) the institution--

                                                    ``(AA) has or had a 
                                                clinical training 
                                                program that was 
                                                approved by a State as 
                                                of January 1, 1992; and

                                                    ``(BB) continues to 
                                                operate a clinical 
                                                training program in at 
                                                least 1 State that is 
                                                approved by that State.

                                    ``(II) Expiration of alternative 
                                qualification.--The authority of a 
                                graduate medical school described in 
                                subclause (I)(bb) to qualify for 
                                participation in the loan programs 
                                under part D of title IV pursuant to 
                                this clause shall expire beginning on 
                                the first July 1 following the date of 
                                enactment of the Higher Education 
                                Affordability Act.'';
                            (iii) in clause (ii)--
                                    (I) by striking ``in the case of a 
                                veterinary school'' and inserting 
                                ``Veterinary school.--In the case of a 
                                veterinary school''; and
                                    (II) by striking ``; or'' and 
                                inserting a period; and
                            (iv) in clause (iii), by striking ``in the 
                        case of a nursing school'' and inserting 
                        ``Nursing school.--In the case of a nursing 
                        school''; and
            (2) in subsection (c)--
                    (A) in the subsection heading, by striking 
                ``Vocational'' and inserting ``Career and Technical 
                Education'';
                    (B) in paragraph (1), by striking ``vocational'' 
                and inserting ``career and technical education''; and
                    (C) in paragraph (2), by striking ``vocational'' 
                and inserting ``career and technical education''.
    (b) Loss of Eligibility.--If a graduate medical school loses 
eligibility to participate in the loan programs under part D of title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) due to 
the enactment of the amendments made by subsection (a), then a student 
enrolled at such graduate medical school on or before the date of 
enactment of this Act may, notwithstanding such loss of eligibility, 
continue to be eligible to receive a loan under such part D while 
attending such graduate medical school in which the student was 
enrolled upon the date of enactment of this Act, subject to the student 
continuing to meet all applicable requirements for satisfactory 
academic progress, until the earliest of--
            (1) withdrawal by the student from the graduate medical 
        school;
            (2) completion of the program of study by the student at 
        the graduate medical school; or
            (3) the fourth June 30 after such loss of eligibility.

SEC. 102. 85-15 REVENUE SOURCE REQUIREMENT FOR PROPRIETARY 
              INSTITUTIONS.

    Section 102(b) (20 U.S.C. 1002(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (E), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) meets the requirements of paragraph (2).'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Revenue sources.--
                    ``(A) In general.--In order to qualify as a 
                proprietary institution of higher education under this 
                subsection, an institution shall derive not less than 
                15 percent of the institution's revenues from sources 
                other than Federal funds, as calculated in accordance 
                with subparagraphs (B) and (C).
                    ``(B) Federal funds.--In this paragraph, the term 
                `Federal funds' means any Federal financial assistance 
                provided, under this Act or any other Federal law, 
                through a grant, contract, subsidy, loan, guarantee, 
                insurance, or other means to a proprietary institution, 
                including Federal financial assistance that is 
                disbursed or delivered to an institution or on behalf 
                of a student or to a student to be used to attend the 
                institution, except that such term shall not include 
                any monthly housing stipend provided under chapter 33 
                of title 38, United States Code.
                    ``(C) Calculation of revenue.--In making 
                calculations under subparagraph (A), an institution of 
                higher education shall--
                            ``(i) use the cash basis of accounting;
                            ``(ii) consider as revenue only those funds 
                        generated by the institution from--
                                    ``(I) tuition, fees, and other 
                                institutional charges for students 
                                enrolled in programs eligible for 
                                assistance under title IV;
                                    ``(II) activities conducted by the 
                                institution that are necessary for the 
                                education and training of the 
                                institution's students, if such 
                                activities are--
                                            ``(aa) conducted on campus 
                                        or at a facility under the 
                                        control of the institution;
                                            ``(bb) performed under the 
                                        supervision of a member of the 
                                        institution's faculty; and
                                            ``(cc) required to be 
                                        performed by all students in a 
                                        specific educational program at 
                                        the institution; and
                                    ``(III) a contractual arrangement 
                                with a Federal agency for the purpose 
                                of providing job training to low-income 
                                individuals who are in need of such 
                                training;
                            ``(iii) presume that any Federal funds that 
                        are disbursed or delivered to an institution on 
                        behalf of a student or directly to a student 
                        will be used to pay the student's tuition, 
                        fees, or other institutional charges, 
                        regardless of whether the institution credits 
                        such funds to the student's account or pays 
                        such funds directly to the student, except to 
                        the extent that the student's tuition, fees, or 
                        other institutional charges are satisfied by--
                                    ``(I) grant funds provided by an 
                                outside source that--
                                            ``(aa) has no affiliation 
                                        with the institution; and
                                            ``(bb) shares no employees 
                                        with the institution; and
                                    ``(II) institutional scholarships 
                                described in clause (v);
                            ``(iv) include no loans made by an 
                        institution of higher education as revenue to 
                        the school, except for payments made by 
                        students on such loans;
                            ``(v) include a scholarship provided by the 
                        institution--
                                    ``(I) only if the scholarship is in 
                                the form of monetary aid based upon the 
                                academic achievements or financial need 
                                of students, disbursed to qualified 
                                student recipients during each fiscal 
                                year from an established restricted 
                                account; and
                                    ``(II) only to the extent that 
                                funds in that account represent 
                                designated funds, or income earned on 
                                such funds, from an outside source 
                                that--
                                            ``(aa) has no affiliation 
                                        with the institution; and
                                            ``(bb) shares no employees 
                                        with the institution; and
                            ``(vi) exclude from revenues--
                                    ``(I) the amount of funds the 
                                institution received under part C of 
                                title IV, unless the institution used 
                                those funds to pay a student's 
                                institutional charges;
                                    ``(II) the amount of funds the 
                                institution received under subpart 4 of 
                                part A of title IV;
                                    ``(III) the amount of funds 
                                provided by the institution as matching 
                                funds for any Federal program;
                                    ``(IV) the amount of Federal funds 
                                provided to the institution to pay 
                                institutional charges for a student 
                                that were refunded or returned; and
                                    ``(V) the amount charged for books, 
                                supplies, and equipment, unless the 
                                institution includes that amount as 
                                tuition, fees, or other institutional 
                                charges.
                    ``(D) Report to congress.--Not later than July 1, 
                2015, and by July 1 of each succeeding year, the 
                Secretary shall submit to the authorizing committees a 
                report that contains, for each proprietary institution 
                of higher education that receives assistance under 
                title IV and as provided in the audited financial 
                statements submitted to the Secretary by each 
                institution pursuant to the requirements of section 
                487(c)--
                            ``(i) the amount and percentage of such 
                        institution's revenues received from Federal 
                        funds; and
                            ``(ii) the amount and percentage of such 
                        institution's revenues received from other 
                        sources.''.

SEC. 103. DEFINITIONS.

    Section 103 (20 U.S.C. 1003) is amended--
            (1) by redesignating paragraphs (4) through (9), (10) 
        through (14), and (15) through (24), as paragraphs (5) through 
        (10), (13) through (17), and (20) through (28), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) Default manipulation.--The term `default 
        manipulation' means engaging in a device or practice, such as 
        branching, consolidation of campuses, consolidation or 
        manipulation of the identification codes used by the Office of 
        Postsecondary Education to designate campuses and institutions, 
        change of ownership or control, serial forbearance, or any 
        similar device or practice (as determined by the Secretary) 
        when, but for the device or practice, one or more campuses of 
        an institution of higher education would be at risk of cohort 
        default rate sanctions under section 435 or student default 
        risk sanctions under section 489A.'';
            (3) by inserting after paragraph (10), as redesignated by 
        paragraph (1), the following:
            ``(11) Federal educational assistance funds.--The term 
        `Federal educational assistance funds' means funds provided 
        directly to an institution or to a student attending such 
        institution under any of the following provisions of law:
                    ``(A) Title IV of the Higher Education Act of 1965 
                (20 U.S.C. 1070 et seq.).
                    ``(B) Chapter 30, 31, 32, 33, 34, or 35 of title 
                38, United States Code.
                    ``(C) Chapter 101, 105, 106A, 1606, 1607, or 1608 
                of title 10, United States Code.
                    ``(D) Section 1784a, 2005, or 2007 of title 10, 
                United States Code.
                    ``(E) Title I of the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.) or title I of the 
                Workforce Innovation and Opportunity Act (Public Law 
                113-128).
                    ``(F) The Adult Education and Family Literacy Act 
                (20 U.S.C. 9201 et seq.).
            ``(12) Foster care children and youth.--The term `foster 
        care children and youth'--
                    ``(A) means children and youth whose care and 
                placement is the responsibility of the State or Tribal 
                agency that administers a State plan under part B or E 
                of title IV of the Social Security Act (42 U.S.C. 621 
                et seq. and 670 et seq.), without regard to whether 
                foster care maintenance payments are made under section 
                472 of such Act (42 U.S.C. 672) on behalf of the child 
                or youth; and
                    ``(B) includes individuals whose care and placement 
                was the responsibility of the State or Tribal agency 
                that administers a State plan under part B or E of 
                title IV of the Social Security Act (42 U.S.C. 621 et 
                seq. and 670 et seq.) when they were age 13 or older 
                but are no longer under the care and responsibility of 
                the State or tribal agency.'';
            (4) by inserting after paragraph (17), as redesignated by 
        paragraph (1), the following:
            ``(18) Recruiting and marketing activity.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `recruiting and marketing 
                activity' means an activity that consists of the 
                following:
                            ``(i) Any advertising or promotion 
                        activity, including a paid announcement in 
                        newspapers, magazines, radio, television, 
                        billboards, electronic media, naming rights, or 
                        any other public medium of communication, 
                        including paying for a display or promotion at 
                        a job fair, military installation, or 
                        postsecondary education recruiting event.
                            ``(ii) Any effort to identify and attract 
                        prospective students, directly or through a 
                        contractor or other third party, which shall 
                        include any contact concerning a prospective 
                        student's potential enrollment or application 
                        for grant, loan, or work assistance under title 
                        IV or participation in preadmission or advising 
                        activities, including--
                                    ``(I) paying employees responsible 
                                for overseeing enrollment and for 
                                contacting potential students in 
                                person, by phone, by email, by internet 
                                communications, or by other means, 
                                regarding enrollment;
                                    ``(II) compensating a person to 
                                provide to an institution of higher 
                                education contact information regarding 
                                prospective students, including 
                                information obtained through websites 
                                established for such purpose; and
                                    ``(III) providing funds to a third 
                                party to create or maintain a website 
                                for the purpose of obtaining contact 
                                information regarding prospective 
                                students.
                            ``(iii) Any other activity as the Secretary 
                        may determine, including paying for promotion 
                        or sponsorship of education or military-related 
                        associations.
                    ``(B) Exception.--An activity that is required as a 
                condition of receipt of funds by an institution under 
                title IV, or under another applicable Federal law, 
                shall not be considered to be a recruiting and 
                marketing activity under subparagraph (A).
            ``(19) Private education loan.--The term `private education 
        loan' has the meaning given the term in section 140(a) of the 
        Truth in Lending Act (15 U.S.C. 1650(a)).''; and
            (5) in paragraph (28), as redesignated by paragraph (1)--
                    (A) in the matter before subparagraph (A), by 
                striking ``scientifically valid'' and inserting 
                ``research-based''; and
                    (B) in subparagraph (B), by striking ``all 
                students, including students with disabilities and 
                students who are limited English proficient.'' and 
                inserting ``all students.''.

SEC. 104. AUTHORIZATION OF APPROPRIATIONS FOR DRUG AND ALCOHOL ABUSE 
              PREVENTION.

    Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended by striking 
``2009'' and inserting ``2015''.

SEC. 105. MANDATORY FINANCIAL AID AWARD LETTER.

    Part B of title I (20 U.S.C. 1011 et seq.) is amended by adding at 
the end the following:

``SEC. 124. USE OF MANDATORY FINANCIAL AID AWARD LETTER.

    ``(a) In General.--Notwithstanding any other provision of law, each 
institution of higher education that participates in any program under 
title IV shall use the financial aid award letter developed under 
section 483B in providing written or electronic financial aid offers to 
students enrolled in, or accepted for enrollment in, the institution.
    ``(b) Effective Date.--The requirement under subsection (a) shall 
take effect 12 months after the Secretary finalizes the financial aid 
award letter developed under section 483B.''.

SEC. 106. CODE OF CONDUCT IN AFFILIATED CONSUMER FINANCIAL PRODUCTS OR 
              SERVICES.

    Part B of title I (20 U.S.C. 1011 et seq.), as amended by section 
105, is further amended by adding at the end the following:

``SEC. 125. CODE OF CONDUCT IN AFFILIATED CONSUMER FINANCIAL PRODUCTS 
              OR SERVICES.

    ``(a) Definitions.--In this section:
            ``(1) Affiliated.--
                    ``(A) In general.--The term `affiliated', when used 
                with respect to a consumer financial product or service 
                and an institution of higher education, means an 
                association between such institution and product or 
                service resulting from--
                            ``(i) the name, emblem, mascot, or logo of 
                        the institution being used with respect to such 
                        product or service; or
                            ``(ii) some other word, picture, or symbol 
                        readily identified with the institution in the 
                        marketing of the consumer financial product or 
                        service in any way that implies that the 
                        institution endorses the consumer financial 
                        product or service.
                    ``(B) Rule of construction.--Nothing in 
                subparagraph (A) shall be construed to deem an 
                association between an institution of higher education 
                and a consumer financial product or service to be 
                affiliated if such association is solely based on an 
                advertisement by a financial institution that is 
                delivered to a wide and general audience consisting of 
                more than enrolled students at the institution of 
                higher education.
            ``(2) Associated individual.--The term `associated 
        individual', when used with respect to an institution of higher 
        education, means an individual who is--
                    ``(A) an officer of such institution of higher 
                education;
                    ``(B) an employee or agent of the institution of 
                higher education who is involved in the contracting, 
                approval, analysis, or decisionmaking process for an 
                affiliated consumer financial product or service; or
                    ``(C) an employee or agent of the institution of 
                higher education involved in the marketing or 
                solicitation process pertaining to an affiliated 
                consumer financial product or service.
            ``(3) Consumer financial product or service.--The term 
        `consumer financial product or service' has the meaning given 
        the term in section 1002 of the Consumer Financial Protection 
        Act of 2010 (12 U.S.C. 5481).
            ``(4) Financial institution.--The term `financial 
        institution' has the meaning given the term in section 140B of 
        the Truth in Lending Act.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education as defined in section 102.
    ``(b) Code of Conduct.--Notwithstanding any other provision of law, 
no institution of higher education that is affiliated with a consumer 
financial product or service shall be eligible to receive funds or any 
other form of financial assistance under this Act, unless the 
institution--
            ``(1) develops a code of conduct with respect to affiliated 
        consumer financial products or services with which associated 
        individuals shall comply that--
                    ``(A) prohibits a conflict of interest with the 
                responsibility of an associated individual with respect 
                to such affiliated consumer financial product or 
                services;
                    ``(B) requires each associated individual to act in 
                the best interest of the students enrolled at the 
                institution of higher education in carrying out their 
                duties; and
                    ``(C) at a minimum, is aligned with the 
                requirements and prohibitions described under 
                subsections (c) through (g);
            ``(2) publishes such code of conduct prominently on the 
        institution's website; and
            ``(3) administers and enforces such code by, at a minimum, 
        requiring that all of the institution's associated individuals 
        be annually informed of the provisions of the code of conduct.
    ``(c) Ban on Revenue-Sharing Arrangements.--
            ``(1) Prohibition.--An institution of higher education that 
        is affiliated with a consumer financial product or service 
        shall not enter into any revenue-sharing arrangement with the 
        financial institution.
            ``(2) Definition.--In this subsection, the term `revenue-
        sharing arrangement'--
                    ``(A) means an arrangement between an institution 
                of higher education and a financial institution under 
                which--
                            ``(i) the financial institution provides or 
                        issues a consumer financial product or service 
                        to students attending the institution of higher 
                        education;
                            ``(ii) the institution of higher education 
                        recommends, promotes, sponsors, or otherwise 
                        endorses the financial institution, or the 
                        consumer financial products or services offered 
                        by the financial institution; and
                            ``(iii) the financial institution pays a 
                        fee or provides other material benefits, 
                        including revenue or profit sharing, to the 
                        institution of higher education in connection 
                        with the consumer financial products or 
                        services provided to students of the 
                        institution of higher education; and
                    ``(B) does not include an arrangement solely based 
                on a financial institution paying a fair market price 
                to an institution of higher education for the 
                institution of higher education to advertise or market 
                the financial institution to the general public.
    ``(d) Gift Ban.--
            ``(1) Prohibition.--No associated individual of an 
        institution of higher education shall solicit or accept any 
        gift from a financial institution that has a consumer financial 
        product or service with which the institution is affiliated.
            ``(2) Definition of gift.--
                    ``(A) In general.--In this subsection, the term 
                `gift' means any gratuity, favor, discount, 
                entertainment, hospitality, loan, or other item having 
                a monetary value of more than a de minimis amount. The 
                term includes a gift of services, transportation, 
                lodging, or meals, whether provided in kind, by 
                purchase of a ticket, payment in advance, or 
                reimbursement after the expense has been incurred.
                    ``(B) Exceptions.--The term `gift' shall not 
                include any of the following:
                            ``(i) Standard material, activities, or 
                        programs on issues related to a consumer 
                        financial product or service or financial 
                        literacy, such as a brochure, a workshop, or 
                        training. Such material, training, or program 
                        shall not promote a product or service of any 
                        specific financial institution.
                            ``(ii) Food, refreshments, training, or 
                        informational material furnished to an 
                        associated individual as an integral part of a 
                        training session that is designed to improve 
                        the service of a financial institution to the 
                        institution of higher education, if such 
                        training contributes to the professional 
                        development of the associated individual.
                            ``(iii) Favorable terms, conditions, and 
                        borrower benefits on a consumer financial 
                        product or service provided to all employees of 
                        the institution of higher education if such 
                        terms, conditions, or benefits are comparable 
                        to those provided to all students of the 
                        institution.
                            ``(iv) Philanthropic contributions to an 
                        institution of higher education from a 
                        financial institution that are unrelated to the 
                        affiliated consumer financial product or 
                        service or the financial institution in general 
                        or any contribution from the financial 
                        institution that is not made in exchange for 
                        any advantage related to the financial 
                        institution.
                    ``(C) Rule for gifts to family members.--For 
                purposes of this subsection, a gift to a family member 
                of an associated individual of an institution of higher 
                education shall be considered a gift to the associated 
                individual if--
                            ``(i) the gift is given with the knowledge 
                        and acquiescence of the associated individual; 
                        and
                            ``(ii) the associated individual has reason 
                        to believe the gift was given because of the 
                        official position of the associated individual.
    ``(e) Contracting Arrangements Prohibited.--
            ``(1) Prohibition.--No associated individual of an 
        institution of higher education shall accept from a financial 
        institution that has a consumer financial product or service 
        with which the institution is affiliated a fee, payment, or 
        other financial benefit (including the opportunity to purchase 
        stock) as compensation for any type of consulting arrangement 
        or other contract to provide services to the financial 
        institution or on behalf of the financial institution.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed as prohibiting the conduct of an individual 
        who is not an associated individual.
    ``(f) Ban on Staffing Assistance.--An institution of higher 
education shall not request or accept from a financial institution with 
which the institution has an affiliated consumer financial product or 
service any assistance with call center staffing, financial aid office 
staffing, or any other office or department of the institution of 
higher education.
    ``(g) Advisory Board Compensation.--Any associated individual of an 
institution of higher education who serves on an advisory board, 
commission, or group established by a financial institution that has a 
consumer financial product or service with which the institution is 
affiliated shall be prohibited from receiving anything of value from 
the financial institution, except that the individual may be reimbursed 
for reasonable expenses incurred in serving on such advisory board, 
commission, or group.''.

SEC. 107. RESTRICTION ON MARKETING WITH FEDERAL EDUCATIONAL ASSISTANCE 
              FUNDS.

    (a) Transfer.--Section 119 of the Higher Education Opportunity Act 
(20 U.S.C. 1011m) is amended--
            (1) by transferring such section so as to follow section 
        125 of the Higher Education Act of 1965, as added by section 
        106; and
            (2) by redesignating such section as section 126 of the 
        Higher Education Act of 1965.
    (b) Amendments.--Section 126, as transferred and redesignated by 
subsection (a), is further amended--
            (1) in the section heading, by inserting ``and restrictions 
        on sources of funds for recruiting and marketing activities'' 
        after ``funds'';
            (2) in subsection (d), by striking ``subsections (a) 
        through (c)'' and inserting ``subsections (a), (b), (c), and 
        (e)'';
            (3) by redesignating subsection (e) as subsection (f);
            (4) by inserting after subsection (d) the following:
    ``(e) Restrictions on Sources of Funds for Recruiting and Marketing 
Activities.--
            ``(1) In general.--An institution of higher education, or 
        other postsecondary educational institution, may not use 
        revenues derived from Federal educational assistance funds for 
        recruiting or marketing activities.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed as a limitation on the use by an institution of 
        revenues derived from sources other than Federal educational 
        assistance funds.
            ``(3) Reporting.--Each institution of higher education, or 
        other postsecondary educational institution, that receives 
        revenues derived from Federal educational assistance funds 
        shall report annually to the Secretary and to Congress the 
        institution's expenditures on advertising, marketing, and 
        recruiting, and shall include in such report a verification 
        from an independent auditor that the institution of higher 
        education is in compliance with the requirement under paragraph 
        (1).'';
            (5) by striking ``the Higher Education Act of 1965 (20 
        U.S.C. 1001 et seq.)'' each place the term appears and 
        inserting ``this Act''; and
            (6) by striking ``Secretary of Education'' each place the 
        term appears and inserting ``Secretary''.

SEC. 108. MINIMUM STANDARDS FOR NET PRICE CALCULATORS.

    Section 132(h) (20 U.S.C. 1015a(h)) is amended--
            (1) by redesignating paragraph (4) as paragraph (6);
            (2) in paragraph (2), by inserting before the period ``, 
        and, not later than 1 year after the date of enactment of the 
        Higher Education Affordability Act, shall meet the requirements 
        of paragraph (4)(B)'';
            (3) in paragraph (3), by inserting after the first sentence 
        the following: ``Not later than 1 year after the date of 
        enactment of the Higher Education Affordability Act, such 
        calculator shall meet the requirements of paragraph (4).'';
            (4) by inserting after paragraph (3) the following:
            ``(4) Minimum requirements for net price calculators.--Not 
        later than 1 year after the date of enactment of the Higher 
        Education Affordability Act, a net price calculator for an 
        institution of higher education shall, at a minimum, meet the 
        following requirements:
                    ``(A) The link for the calculator--
                            ``(i) is clearly labeled as a `net price 
                        calculator' and is prominently and clearly 
                        posted in locations on the institution's 
                        website where information on costs and aid is 
                        provided; and
                            ``(ii) may also be included on the 
                        institution's compliance webpage, which 
                        contains information relating to compliance 
                        with Federal, State, and local laws.
                    ``(B) The results screen for the calculator 
                specifies the following information:
                            ``(i) The net price (as calculated under 
                        subsection (h)(2)) for the individual student, 
                        which is the most visually prominent figure on 
                        the results screen.
                            ``(ii) Cost of attendance for the 
                        institution, including--
                                    ``(I) tuition and fees;
                                    ``(II) the average annual cost of 
                                room and board for the institution for 
                                a first-time, full-time undergraduate 
                                student enrolled in the institution;
                                    ``(III) the average annual cost of 
                                books and supplies for a first-time, 
                                full-time undergraduate student 
                                enrolled in the institution; and
                                    ``(IV) the estimated cost of other 
                                expenses (including personal expenses 
                                and transportation) for a first-time, 
                                full-time undergraduate student 
                                enrolled in the institution.
                            ``(iii) Estimated amount of need-based 
                        grant aid and merit-based grant aid, from 
                        Federal, State, and institutional sources, that 
                        students receive at the institution, showing 
                        the subtotal for each category and the total 
                        for all sources of grant aid.
                            ``(iv) Percentage of the first-time, full-
                        time undergraduate students enrolled in the 
                        institution that received any type of grant aid 
                        described in clause (iii).
                            ``(v) The disclaimer described in paragraph 
                        (6).
                            ``(vi) In the case of a calculator that--
                                    ``(I) includes questions to 
                                estimate a student's (or prospective 
                                student's) eligibility for veterans' 
                                education benefits (as defined in 
                                section 480) or educational benefits 
                                for active duty service members, such 
                                benefits are displayed on the results 
                                screen in a manner that clearly 
                                distinguishes them from the grant aid 
                                described in clause (iii); or
                                    ``(II) does not include questions 
                                to estimate eligibility for the 
                                benefits described in subclause (I), 
                                the results screen indicates that 
                                certain students (or prospective 
                                students) may qualify for such benefits 
                                and includes a link to official Federal 
                                information about such benefits.
                    ``(C) The institution populates the calculator with 
                data from no earlier than 2 academic years prior to the 
                most recent academic year.
            ``(5) Privacy requirements and disclosures.--
                    ``(A) Privacy requirements.--An institution of 
                higher education--
                            ``(i) shall carry out this subsection in a 
                        manner that complies with the requirements of 
                        section 444 of the General Education Provisions 
                        Act (commonly known as the `Family Educational 
                        Rights and Privacy Act of 1974') (20 U.S.C. 
                        1232g); and
                            ``(ii) shall not--
                                    ``(I) allow any personal 
                                information, voluntarily provided by 
                                users for the net price calculator for 
                                the institution to be sold or made 
                                available to third parties;
                                    ``(II) store any responses made by 
                                users through the net price calculator;
                                    ``(III) require that a user provide 
                                any personally identifiable information 
                                in order to use the net price 
                                calculator.
                    ``(B) Privacy disclosures.--A net price calculator 
                shall--
                            ``(i) clearly indicate which questions are 
                        required to be completed for an estimate of the 
                        net price from the calculator;
                            ``(ii) in the case of a calculator that 
                        requests contact information from users, 
                        clearly mark such requests as `optional';
                            ``(iii) clearly state `Any information that 
                        you provide on this site is confidential. The 
                        Net Price Calculator does not require 
                        personally identifiable information of any kind 
                        and does not store your responses.'; and
                            ``(iv) be established, maintained, and 
                        operated in a manner that is in compliance with 
                        the requirements of section 444 of the General 
                        Education Provisions Act (commonly known as the 
                        `Family Educational Rights and Privacy Act of 
                        1974') (20 U.S.C. 1232g)''; and
            (5) by adding at the end the following:
            ``(7) Universal net price calculator.--Not later than 2 
        years after the date of enactment of the Higher Education 
        Affordability Act, the Secretary shall develop a universal net 
        price calculator that--
                    ``(A) enables users to answer one set of questions 
                and receive net prices for any institution that is 
                required to have a net price calculator under this 
                subsection;
                    ``(B) provides the information required under 
                subparagraphs (B) and (C) of paragraph (4) for each 
                institution for which a net price is being sought;
                    ``(C) is developed in consultation with--
                            ``(i) the heads of relevant Federal 
                        agencies;
                            ``(ii) representatives of institutions of 
                        higher education, nonprofit consumer groups, 
                        and secondary and postsecondary students; and
                            ``(iii) secondary school and postsecondary 
                        guidance counselors;
                    ``(D) before being finalized and publicly released, 
                is tested in accordance with the consumer testing 
                process described in section 483C; and
                    ``(E) complies with the privacy requirements 
                described in paragraph (5).
            ``(8) Report from secretary.--Not later than 2 years after 
        the date of enactment of the Higher Education Affordability 
        Act, the Secretary shall submit a report to Congress on--
                    ``(A) steps taken to raise awareness of net price 
                calculators among prospective students and families, 
                particularly among students in middle school and high 
                school and students from low-income families;
                    ``(B) how institutions are complying with the 
                requirements of this subsection, including an analysis 
                of where institutions are placing the net price 
                calculators on their websites and the design of the net 
                price calculators by institutions; and
                    ``(C) an analysis of how students are benefitting 
                from the use of net price calculators.
            ``(9) Website link.--The Secretary shall ensure that a link 
        to the website containing the net price calculator and the 
        universal net price calculator (once the universal net price 
        calculator has been developed) is available on each of the 
        following websites:
                    ``(A) The College Navigator website described under 
                subsection (i).
                    ``(B) The College Scorecard website described under 
                section 133.
                    ``(C) The website of the College Affordability and 
                Transparency Center.
                    ``(D) The website of the Office of Federal Student 
                Aid.''.

SEC. 109. BENEFITS FOR BORROWERS WHO ARE MEMBERS OF THE ARMED FORCES.

    Section 131(f) (20 U.S.C. 1015(f)) is amended to read as follows:
    ``(f) Benefits for Members of the Armed Forces.--
            ``(1) Website.--
                    ``(A) In general.--The Secretary, in coordination 
                with the Secretary of Defense, the Secretary of 
                Veterans Affairs, and the Secretary of Homeland 
                Security, shall create a revised and updated searchable 
                Internet website that--
                            ``(i) contains information, in simple and 
                        understandable terms, about all Federal and 
                        State student financial assistance, readmission 
                        requirements under section 484C, and other 
                        student services, for which members of the 
                        Armed Forces (including members of the National 
                        Guard and Reserves), veterans, and the 
                        dependents of such members or veterans may be 
                        eligible; and
                            ``(ii) is easily accessible through the 
                        Internet website described in subsection 
                        (e)(3).
                    ``(B) Implementation.--Not later than 1 year after 
                the date of enactment of the Higher Education 
                Affordability Act, the Secretary shall make publicly 
                available the revised and updated Internet website 
                described in subparagraph (A).
                    ``(C) Dissemination.--The Secretary, in 
                coordination with the Secretary of Defense and the 
                Secretary of Veterans Affairs, shall make the 
                availability of the Internet website described in 
                subparagraph (A) widely known to members of the Armed 
                Forces (including members of the National Guard and 
                Reserves), veterans, the dependents of such members or 
                veterans, States, institutions of higher education, and 
                the general public.
                    ``(D) Definition.--In this paragraph, the term 
                `Federal and State student financial assistance' means 
                any grant, loan, work assistance, tuition assistance, 
                scholarship, fellowship, or other form of financial aid 
                for pursuing a postsecondary education that is--
                            ``(i) administered, sponsored, or supported 
                        by the Department of Education, the Department 
                        of Defense, the Department of Veterans Affairs, 
                        or a State; and
                            ``(ii) available to members of the Armed 
                        Forces (including members of the National Guard 
                        and Reserves), veterans, or the dependents of 
                        such members or veterans.
            ``(2) Enrollment form.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Director of the Bureau of Consumer Financial 
                Protection, the Secretary of Defense, and the heads of 
                any other relevant Federal agencies, shall create a 
                simplified disclosure and enrollment form for borrowers 
                who are performing eligible military service (as 
                defined in section 481(d)).
                    ``(B) Contents.--The disclosure and enrollment form 
                described in subparagraph (A) shall include--
                            ``(i) information about the benefits and 
                        protections under title IV and under the 
                        Servicemembers Civil Relief Act (50 U.S.C. App. 
                        501 et seq.) that are available to such 
                        borrower because the borrower is performing 
                        eligible military service; and
                            ``(ii) an opportunity for the borrower, by 
                        completing the enrollment form, to invoke 
                        certain protections, activate certain benefits, 
                        and enroll in certain programs that may be 
                        available to that borrower, which shall include 
                        the opportunity--
                                    ``(I) to invoke applicable 
                                protections that are available under 
                                the Servicemembers Civil Relief Act (50 
                                U.S.C. App. 501 et seq.), as such 
                                protections relate to Federal student 
                                loans under title IV; and
                                    ``(II) to activate or enroll in any 
                                other applicable benefits that are 
                                available to such borrower under this 
                                Act because the borrower is performing 
                                eligible military service, such as 
                                eligibility for a deferment or 
                                eligibility for a period during which 
                                interest shall not accrue.
                    ``(C) Implementation.--Not later than 365 days 
                after the date of the enactment of the Higher Education 
                Affordability Act, the Secretary shall make available 
                to eligible institutions, eligible lenders, and 
                personnel at the Department of Defense and other 
                Federal agencies that provide services to borrowers who 
                are members of the Armed Forces or the dependents of 
                such members, the disclosure and enrollment form 
                described in subparagraph (A).
                    ``(D) Notice requirements.--
                            ``(i) SCRA interest rate limitation.--The 
                        completion of the disclosure and enrollment 
                        form created pursuant to subparagraph (A) by 
                        the borrower of a loan made, insured, or 
                        guaranteed under part B or part D of title IV 
                        who is otherwise subject to the interest rate 
                        limitation in subsection (a) of section 207 of 
                        the Servicemembers Civil Relief Act (50 U.S.C. 
                        App. 527(a)) and submittal of such form to the 
                        Secretary shall be considered, for purposes of 
                        such section, provision to the creditor of 
                        written notice as described in subsection 
                        (b)(1) of such section.
                            ``(ii) FFEL lenders.--The Secretary shall 
                        provide each such disclosure and enrollment 
                        form completed and submitted by a borrower of a 
                        loan made, insured, or guaranteed under part B 
                        of title IV who is otherwise subject to the 
                        interest rate limitation in subsection (a) of 
                        section 207 of the Servicemembers Civil Relief 
                        Act (50 U.S.C. App. 527(a)) to any applicable 
                        eligible lender under part B of title IV so as 
                        to satisfy the provision to the lender of 
                        written notice as described in subsection 
                        (b)(1) of such section.''.

SEC. 110. DATA IMPROVEMENTS FOR COLLEGE NAVIGATOR.

    Section 132(i)(1) (20 U.S.C. 1015(i)(1)) is amended by striking 
subparagraph (M) and inserting the following:
                    ``(M) The student faculty ratio, the number of 
                full-time faculty, the ratio of the number of course 
                sections taught by part-time instructors to the number 
                of course sections taught by full-time faculty, the 
                mean and median years of employment for part-time 
                instructors, and the number of graduate assistants with 
                primarily instructional responsibilities, at the 
                institution.''.

SEC. 111. COLLEGE SCORECARD.

    Part C of title I (20 U.S.C. 1015 et seq.) is amended--
            (1) by redesignating sections 133 through 137 as sections 
        134 through 138, respectively; and
            (2) by inserting after section 132 the following:

``SEC. 133. COLLEGE SCORECARD.

    ``(a) Definitions.--In this section:
            ``(1) College scorecard.--The term `College Scorecard' 
        refers to the College Scorecard website developed and operated 
        by the Department under subsection (b) and any successor 
        website.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education, as defined in section 102, that awards a 
        degree or certificate.
            ``(3) Recent graduate.--The term `recent graduate', when 
        used in reference to a graduate of an institution of higher 
        education, shall mean a student who completed a course of study 
        and earned a certificate or degree at the institution in any of 
        the 6 most recent preceding years for which data are available.
    ``(b) In General.--The Secretary shall develop and make publicly 
available a College Scorecard website to provide students and families 
with information regarding higher education affordability and value for 
each institution of higher education that receives funds under title 
IV.
    ``(c) Standard Format.--
            ``(1) In general.--The Secretary, in consultation with the 
        heads of relevant Federal agencies, shall develop a standard 
        format to be used by the Secretary for public disclosure of 
        information related to higher education affordability and 
        value, including the information described in subsections (d) 
        and (e).
            ``(2) Recommendations from other groups.--The standard 
        format developed under paragraph (1) shall be based on 
        recommendations from representatives of secondary school 
        students and postsecondary students, the families of secondary 
        school and postsecondary students, institutions of higher 
        education, secondary school and postsecondary education 
        counselors, and nonprofit consumer groups.
            ``(3) Sources of data.--The data used in the standard 
        format shall be data that are available to the Secretary 
        through other sources and reports.
    ``(d) Key Required Contents.--The standard format developed under 
subsection (c) shall include, in a consumer-friendly manner that is 
simple and understandable, the following information for each degree- 
and certificate-granting institution of higher education that receives 
funds under title IV for the most recent year for which data are 
available:
            ``(1) Net price information.--
                    ``(A) The average net price paid by enrolled 
                students to attend the institution, calculated in a 
                manner consistent with section 132(a)(3), for the 
                subgroups of students at the institution in each of the 
                following annual family income categories, and the 
                percentage of students in each category:
                            ``(i) $0 to $30,000.
                            ``(ii) $30,001 to $48,000.
                            ``(iii) $48,001 to $75,000.
                            ``(iv) $75,001 to $110,000.
                            ``(v) $110,001 and more.
                    ``(B) A visual representation that provides context 
                for the information conveyed under subparagraph (A), 
                including how the net price information compares to 
                other institutions.
                    ``(C) The Commissioner of the National Center for 
                Education Statistics may periodically adjust the annual 
                family income categories described under subparagraph 
                (A).
            ``(2) Completion and transfer data.--
                    ``(A) For each institution, the percentages of 
                certificate- or degree-seeking undergraduate students 
                enrolled at the institution who obtain a certificate or 
                degree within--
                            ``(i) 100 percent of the normal time for 
                        completion of, or graduation from, the 
                        student's educational program; and
                            ``(ii) 150 percent of the normal time for 
                        completion of, or graduation from, the 
                        student's educational program.
                    ``(B) For each institution, the percentages of 
                certificate- or degree-seeking undergraduate students 
                enrolled at the institution--
                            ``(i) who persist and remain enrolled in 
                        the institution from academic term to academic 
                        term; and
                            ``(ii) who persist and remain enrolled in 
                        the institution from year to year.
                    ``(C) For each institution, the percentages of 
                certificate- or degree-seeking undergraduate students 
                who have transferred to a 4-year institution of higher 
                education within--
                            ``(i) 100 percent of the normal time for 
                        completion of, or graduation from, the 
                        student's initial educational program; and
                            ``(ii) 150 percent of the normal time for 
                        completion of, or graduation from, the 
                        student's initial educational program.
                    ``(D) For each institution, a visual representation 
                that provides context for the information conveyed 
                under subparagraphs (A) and (B) and, as applicable, 
                subparagraph (C), including how the completion, 
                transfer, and persistence rates compare to other 
                institutions.
            ``(3) Loan information.--
                    ``(A) The percentage of students at the institution 
                who have completed their certificate or degree program 
                and who borrowed 1 or more loans under part B, D, or E 
                of title IV, or private education loans, while 
                attending the institution.
                    ``(B) The institution's speed-based loan repayment 
                rate, as calculated under section 483D(c) and the 
                comparison information described in section 483D(c)(4).
                    ``(C) A visual representation that provides context 
                for the information conveyed under this paragraph, 
                including how the information described in 
                subparagraphs (A) and (B) compares to other 
                institutions.
            ``(4) Debt information.--
                    ``(A) The mean and median student loan debt, 
                including private education loan debt, incurred by 
                students who have earned a certificate or degree from 
                the institution and who borrowed student loans in the 
                course of obtaining such certificate or degree in the 
                most recent year for which data are available.
                    ``(B) The percentage of students at the institution 
                who have borrowed money to attend the institution.
                    ``(C) A visual representation that provides context 
                for the information conveyed under subparagraphs (A) 
                and (B), including how the debt information compares to 
                other institutions.
            ``(5) Repayment information.--
                    ``(A) The expected monthly repayment amounts for 
                the mean and median student loan debt described in 
                paragraph (4), under a standard repayment plan 
                described in section 455(d)(1)(A) based on a 10-year 
                period.
                    ``(B) A visual representation that provides context 
                for the information conveyed under subparagraph (A), 
                including how the repayment information compares to 
                other similar institutions.
            ``(6) Type of institution.--A specification as to--
                    ``(A) whether the institution of higher education 
                is a public, private nonprofit, or private for-profit 
                institution; and
                    ``(B) whether the institution is a 4-year, 2-year, 
                or less than 2-year institution and which degree type 
                the institution primarily awards.
            ``(7) Additional information.--Any other information the 
        Secretary, in consultation with the heads of relevant Federal 
        agencies, representatives of institutions of higher education, 
        nonprofit consumer groups, and secondary and postsecondary 
        students, and secondary school and postsecondary guidance 
        counselors, determines necessary so that students and parents 
        can make informed decisions regarding postsecondary education.
    ``(e) College Tuition Transparency Information.--The standard 
format developed for institutions of higher education under subsection 
(c) shall--
            ``(1) prominently and clearly identify if the institution 
        has been identified under section 132(c)(1), and the reasons 
        for each institution's identification; and
            ``(2) provide a link to the webpage of the net price 
        calculator of the institution, as required under section 
        132(h)(3).
    ``(f) Additional Requirements.--The standard format developed by 
the Secretary under subsection (c) shall--
            ``(1) use, for the terms described in subsection (d), 
        standard definitions and names that are developed by the 
        Secretary in consultation with the heads of relevant Federal 
        agencies, representatives of institutions of higher education, 
        nonprofit consumer groups, secondary and postsecondary 
        students, and secondary school and higher education guidance 
        counselors; and
            ``(2) use standard formatting and design that the 
        Secretary, in consultation with the heads of relevant Federal 
        agencies, representatives of institutions of higher education, 
        nonprofit consumer groups, secondary school students, 
        postsecondary students, and secondary school and higher 
        education guidance counselors determine are clear, 
        understandable, and suitable for secondary school students.
    ``(g) Consumer Testing.--The Secretary shall carry out consumer 
testing for the College Scorecard in accordance with section 483C.
    ``(h) Final Standard Format and Availability of College 
Scorecard.--Not later than 60 days after the conclusion of the consumer 
testing required under subsection (h), the Secretary shall--
            ``(1) submit to the authorizing committees the final 
        standard format for the College Scorecard and a report 
        describing the results of consumer testing, including whether 
        the Secretary added any additional items pursuant to subsection 
        (d)(8); and
            ``(2) make the final College Scorecard, including all 
        information required for the standard format under subsections 
        (d) and (e) for all institutions of higher education that 
        receive funds until title IV, publicly available through a 
        College Scorecard website and through a link on the following 
        other websites:
                    ``(A) The College Navigator website described under 
                section 132(i).
                    ``(B) The website of the College Affordability and 
                Transparency Center.
                    ``(C) The website of the Office of Federal Student 
                Aid.
    ``(i) Distribution of College Scorecard.--Each institution of 
higher education receiving funds under title IV shall--
            ``(1) make the most recent College Scorecard for the 
        institution publicly available on the website of the 
        institution;
            ``(2) distribute the most recent College Scorecard for the 
        institution to prospective students and accepted students of 
        the institution--
                    ``(A) in the same format in which the institution 
                communicates with prospective and accepted students 
                about applying to and enrolling in the institution; and
                    ``(B) in a manner that allows for the student or 
                the family of the student to take such information into 
                account before applying or enrolling, without regard to 
                whether the information was requested; and
            ``(3) in the case of an institution with high student 
        default risk that is required under section 487(a)(32) to 
        provide a student accepted for enrollment with a waiting period 
        of not less than 2 weeks to consider postsecondary options, 
        disclose to the student the College Scorecard of the 
        institution at or before the start of such waiting period.
    ``(j) Public Awareness Campaign.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Higher Education Affordability Act, the 
        Secretary shall coordinate, with entities such as States, 
        institutions of higher education, State educational agencies, 
        local educational agencies, secondary schools, and other 
        agencies, and organizations involved in access to higher 
        education and student financial aid, and implement a public 
        awareness campaign in order to increase national awareness of 
        the College Scorecard.
            ``(2) Content and implementation of campaign.--The public 
        awareness campaign carried out under this subsection shall 
        disseminate information regarding the functions and methods of 
        accessing the College Scorecard, and shall be implemented, to 
        the extent practicable, using a variety of media, including 
        print, television, radio, and the Internet.
            ``(3) Use of research-based strategies.--The Secretary 
        shall design and implement the public awareness campaign 
        carried out under this subsection based on relevant independent 
        research and information on dissemination strategies found 
        suitable for students in secondary school and postsecondary 
        education.''.

SEC. 112. REPORTING REQUIREMENTS.

    Section 135(b), as redesignated by section 111, is amended--
            (1) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(3) is developed pursuant to the institutional reporting 
        requirements under section 493G.''.

SEC. 113. IN-STATE TUITION RATES FOR CERTAIN INDIVIDUALS.

    Section 136, as redesignated by section 111, is amended to read as 
follows:

``SEC. 136. IN-STATE TUITION RATES FOR CERTAIN INDIVIDUALS.

    ``(a) Members of the Armed Forces on Active Duty.--
            ``(1) Requirement.--In the case of a member of the Armed 
        Forces who is on active duty for a period of more than 30 days 
        and whose domicile or permanent duty station is in a State that 
        receives assistance under this Act, such State shall not charge 
        such member (or the spouse or dependent child of such member) 
        tuition for attendance at a public institution of higher 
        education in the State at a rate that is greater than the rate 
        charged for residents of the State.
            ``(2) Continuation.--If a member of the Armed Forces (or 
        the spouse or dependent child of a member) pays tuition at a 
        public institution of higher education in a State at a rate 
        determined by paragraph (1), the provisions of paragraph (1) 
        shall continue to apply to such member, spouse, or dependent 
        while continuously enrolled at that institution, 
        notwithstanding a subsequent change in the permanent duty 
        station of the member to a location outside the State.
    ``(b) Homeless Children or Youths and Foster Care Children or 
Youths.--A State shall not charge a homeless child or youth or a foster 
care child or youth tuition for attendance at a public institution of 
higher education in the State at a rate that is greater than the rate 
charged for residents of the State, if the homeless child or youth or 
foster care child or youth--
            ``(1) graduated from secondary school or obtained the 
        recognized equivalent of a secondary school diploma in such 
        State;
            ``(2) resided in such State as a homeless child or youth or 
        a foster care child or youth while attending secondary school 
        in an adjacent State, as verified by--
                    ``(A) a local educational agency homeless liaison, 
                designated pursuant to section 722(g)(1)(J)(ii) of the 
                McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11432(g)(1)(J)(ii));
                    ``(B) the director (or a designee of the director) 
                of an emergency or transitional shelter, street 
                outreach program, homeless youth drop-in center, or 
                other program serving homeless youth or families;
                    ``(C) the director (or a designee of the director) 
                of a program funded under chapter 1 or 2 of subpart 2 
                of part A of title IV; or
                    ``(D) the State or tribal organization that 
                administers a State plan under part B or E of title IV 
                of the Social Security Act (42 U.S.C. 621 et seq. and 
                670 et seq.).
    ``(c) Effective Dates.--
            ``(1) Armed forces.--With respect to an individual 
        described in subsection (a)(1), this section shall take effect 
        at each public institution of higher education in a State that 
        receives assistance under this Act for the first period of 
        enrollment at such institution that begins after July 1, 2009.
            ``(2) Homeless children or youths and foster care children 
        or youths.--With respect to an individual described in 
        subsection (b), this section shall take effect at each public 
        institution of higher education in a State that receives 
        assistance under this Act for the first period of enrollment at 
        such institution that begins after July 1, 2015.
    ``(d) Definitions.--
            ``(1) `Armed forces' and `active duty for a period of more 
        than 30 days'.--In this section, the terms `Armed Forces' and 
        `active duty for a period of more than 30 days' have the 
        meanings given those terms in section 101 of title 10, United 
        States Code.
            ``(2) Homeless children and youths.--The term `homeless 
        children and youths' has the meaning given the term in section 
        725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11434a).''.

SEC. 114. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.

    Section 137(g), as redesignated by section 111, is amended by 
striking ``2009'' and inserting ``2015''.

SEC. 115. RESPONSIBILITIES OF FSA OMBUDSMAN; ADDITION OF POINT OF 
              CONTACT FOR MILITARY FAMILIES AND HOMELESS CHILDREN.

    Section 141(f) (20 U.S.C. 1018(f)) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) receive, review, and resolve expeditiously 
                complaints regarding a student's independence under 
                subparagraph (B) or (H) of section 480(d)(1), in 
                consultation with knowledgeable parties, including 
                child welfare agencies, local educational agency 
                liaisons for homeless children and youths designated 
                under subtitle B of title VII of the McKinney-Vento 
                Homeless Assistance Act (42 U.S.C. 11431 et seq.) or 
                State Coordinators for Education of Homeless Children 
                and Youths established under such subtitle.'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following:
            ``(4) Military and veteran point of contact.--
                    ``(A) In general.--The Chief Operating Officer, in 
                consultation with the Secretary, shall designate 1 or 
                more employees to act as the military and veteran point 
                of contact within the office of the Student Loan 
                Ombudsman.
                    ``(B) Functions.--The designated military and 
                veteran point of contact described in subparagraph (A) 
                shall--
                            ``(i) monitor the complaints received from 
                        the Ombudsman under paragraph (3)(A) from, and 
                        provide timely assistance to, members of the 
                        Armed Forces (including members of the National 
                        Guard and Reserves), veterans, and their 
                        dependents;
                            ``(ii) coordinate with other agencies, 
                        including the Department of Defense, the 
                        Department of Veterans Affairs, the Department 
                        of Homeland Security, and the Bureau of 
                        Consumer Financial Protection, to ensure that 
                        members of the Armed Forces, veterans, and the 
                        dependents of members of the Armed Forces and 
                        veterans, who are students, borrowers, or 
                        potential borrowers, are aware of the 
                        availability and functions of the Ombudsman; 
                        and
                            ``(iii) issue to the Committee on Health, 
                        Education, Labor, and Pensions of the Senate, 
                        the Committee on Education and the Workforce of 
                        the House of Representatives, the Committee on 
                        Veterans' Affairs of the Senate, the Committee 
                        on Veterans' Affairs of the House of 
                        Representatives, the Committee on Armed 
                        Services of the Senate, and the Committee on 
                        Armed Services of the House of Representatives 
                        an annual report on the challenges that such 
                        members of the Armed Forces, veterans, and 
                        dependents are facing as students, borrowers, 
                        and potential borrowers.''.

SEC. 116. RESPONSIBILITIES OF COVERED INSTITUTIONS, INSTITUTION-
              AFFILIATED ORGANIZATIONS, AND LENDERS.

    Section 152 (20 U.S.C. 1019a) is amended--
            (1) in the matter preceding clause (i) of subsection 
        (a)(1)(A), by striking ``(h) of section 487'' and inserting 
        ``(g) of section 487''; and
            (2) in subsection (b)(1)(B)(i)(I), by striking ``section 
        487(e)'' and inserting ``section 487(d)''.

SEC. 117. ESTABLISHMENT OF COMPLAINT RESOLUTION AND TRACKING SYSTEM.

    Title I (20 U.S.C. 1001 et seq.) is amended--
            (1) by striking section 155; and
            (2) by adding at the end the following:

                  ``PART F--COMPLAINT TRACKING SYSTEM

``SEC. 161. COMPLAINT TRACKING SYSTEM.

    ``(a) Definition of Complainant.--In this section, the term 
`complainant' means--
            ``(1) a student of a postsecondary educational institution;
            ``(2) a family member of a student of a postsecondary 
        educational institution;
            ``(3) a third party acting on behalf of a student of a 
        postsecondary educational institution; or
            ``(4) a staff member or employee of a postsecondary 
        educational institution.
    ``(b) Establishment of Complaint Tracking System.--
            ``(1) Establishment of complaint tracking system.--
                    ``(A) In general.--Not later than 1 year after the 
                enactment of the Higher Education Affordability Act, 
                the Secretary shall complete the establishment of a 
                complaint tracking system that includes a single, toll-
                free telephone number and a website to facilitate the 
                centralized collection of, monitoring of, and response 
                to complaints or inquiries regarding the educational 
                practices and services, and recruiting and marketing 
                practices, of all postsecondary educational 
                institutions.
                    ``(B) Purpose.--The purpose of the complaint 
                tracking system is to address allegations of fraud, 
                misrepresentation, or negligence with respect to 
                recruitment and marketing to students.
            ``(2) Establishment of complaint tracking office.--The 
        Secretary shall establish within the Department an office whose 
        functions shall include establishing, administering, and 
        disseminating widely information about the complaint tracking 
        system established under paragraph (1). The Secretary shall--
                    ``(A) to the extent necessary, combine and 
                consolidate the other offices and functions of the 
                Department in order to ensure that the office 
                established under this paragraph is the single point of 
                contact for students and borrowers with complaints; and
                    ``(B) to the extent practicable, ensure that the 
                office established in this paragraph will work with the 
                Student Loan Ombudsman appointed in accordance with 
                section 141(f) to assist borrowers that have complaints 
                regarding the educational practices and services, and 
                recruiting and marketing practices, of postsecondary 
                educational institutions.
    ``(c) Handling of Complaints.--
            ``(1) Timely response to complaints.--The Secretary shall 
        establish, in consultation with the heads of appropriate 
        agencies, reasonable procedures to provide a timely response to 
        complainants, in writing where appropriate, to complaints 
        against, or inquiries concerning, an institution of higher 
        education that receives funds under this Act. Each response 
        shall include a description of--
                    ``(A) the steps that have been taken by the 
                Secretary in response to the complaint or inquiry;
                    ``(B) any responses received by the Secretary from 
                the institution of higher education; and
                    ``(C) any additional actions that the Secretary has 
                taken, or plans to take, in response to the complaint 
                or inquiry.
            ``(2) Timely response to secretary by institution of higher 
        education.--The Secretary shall notify each institution of 
        higher education that receives funds under this Act and that is 
        the subject of a complaint or inquiry under this section 
        regarding the complaint or inquiry. Not later than 60 days 
        after receiving such notice, such institution shall provide a 
        response to the Secretary concerning the complaint or inquiry, 
        including--
                    ``(A) the steps that have been taken by the 
                institution to respond to the complaint or inquiry;
                    ``(B) all responses received by the institution 
                from the complainant; and
                    ``(C) any additional actions that the institution 
                has taken, or plans to take, in response to the 
                complaint or inquiry.
            ``(3) Further investigation.--The Secretary may, in the 
        event that the complaint is not adequately resolved or 
        addressed by the responses of the institution of higher 
        education receiving funds under this Act under paragraph (2), 
        ask additional questions of such institution or seek additional 
        information from or action by the institution.
            ``(4) Provision of information.--
                    ``(A) In general.--An institution of higher 
                education that receives funds under this Act shall, in 
                a timely manner, comply with a request by the Secretary 
                for information in the control or possession of such 
                institution concerning a complaint or inquiry received 
                by the Secretary under subsection (a), including 
                supporting written documentation, subject to 
                subparagraph (B).
                    ``(B) Exceptions.--An institution of higher 
                education that receives funds under this Act shall not 
                be required to make available under this subsection--
                            ``(i) any nonpublic or confidential 
                        information, including any confidential 
                        commercial information;
                            ``(ii) any information collected by the 
                        institution for the purpose of preventing fraud 
                        or detecting or making any report regarding 
                        other unlawful or potentially unlawful conduct; 
                        or
                            ``(iii) any information required to be kept 
                        confidential by any other provision of law.
            ``(5) Compliance.--An institution of higher education that 
        receives funds under this Act shall comply with the 
        requirements to provide responses and information, in 
        accordance with this subsection, as a condition of receiving 
        such funds.
    ``(d) Transparency.--
            ``(1) Sharing information with federal and state 
        agencies.--As appropriate and in accordance with section 444 of 
        the General Education Provisions Act (20 U.S.C. 1232g) 
        (commonly referred to as the ``Family Educational Rights and 
        Privacy Act of 1974'') and other laws, the Secretary shall 
        coordinate with the heads of relevant Federal and State 
        agencies to--
                    ``(A) collect complaints related to the complaint 
                tracking system described in subsection (b) from such 
                agencies; and
                    ``(B) route such complaints to relevant Federal and 
                State agencies when appropriate.
            ``(2) Interaction with existing complaint systems.--To the 
        extent practicable, all procedures established under this 
        section, and all coordination carried out under paragraph (1), 
        shall be done in accordance with the complaint tracking systems 
        established under Executive Order 13607 (77 Fed. Reg. 25861; 
        relating to establishing principles of excellence for 
        educational institutions serving servicemembers, veterans, 
        spouses, and other family members).
            ``(3) Public information.--
                    ``(A) In general.--The Secretary shall regularly 
                publish on the website of the Department information on 
                the complaints and inquiries received for each 
                postsecondary educational institution under this 
                section, including--
                            ``(i) the number of complaints and 
                        inquiries received;
                            ``(ii) the types of complaints and 
                        inquiries received; and
                            ``(iii) where applicable, information about 
                        the resolution of the complaints and inquiries.
                    ``(B) Data privacy.--In carrying out subparagraph 
                (A), the Secretary shall--
                            ``(i) comply with applicable data privacy 
                        laws and regulations; and
                            ``(ii) ensure that personally identifiable 
                        information is not shared.
                    ``(C) Appeals process.--The Secretary shall 
                establish an appeals process to allow postsecondary 
                educational institutions to challenge or appeal a 
                complaint after such complaint has been made public. A 
                postsecondary educational institution shall provide 
                adequate documentation to the Secretary to demonstrate 
                that such a complaint is unfounded before the Secretary 
                may decide to remove the complaint from the website of 
                the Department.
            ``(4) Reports.--Each year, the Secretary shall prepare and 
        submit a report to the authorizing committees describing--
                    ``(A) the types and nature of complaints the 
                Secretary has received under this section;
                    ``(B) the extent to which complainants are 
                receiving relief pursuant to this section;
                    ``(C) whether particular types of complaints are 
                more common in a given sector of postsecondary 
                educational institutions;
                    ``(D) any legislative recommendations that the 
                Secretary determines are necessary to better assist 
                students and families; and
                    ``(E) the schools with the highest volume of 
                complaints, as determined by the Secretary.''.

SEC. 118. PROPRIETARY EDUCATION OVERSIGHT COORDINATION COMMITTEE.

    Title I (20 U.S.C. 1001 et seq.), as amended by section 117, is 
further amended by adding at the end the following:

   ``PART G--PROPRIETARY EDUCATION OVERSIGHT COORDINATION IMPROVEMENT

``SEC. 166. DEFINITIONS.

    ``In this part:
            ``(1) Executive officer.--The term `executive officer', 
        with respect to a proprietary institution of higher education 
        that is a publicly traded corporation, means--
                    ``(A) the president of such corporation;
                    ``(B) a vice president of such corporation who is 
                in charge of a principal business unit, division, or 
                function of such corporation, such as sales, 
                administration, or finance; or
                    ``(C) any other officer or person who performs a 
                policy making function for such corporation.
            ``(2) Federal funds.--The term `Federal funds' means 
        Federal funds described in section 102(b)(2)(B).
            ``(3) Proprietary institution of higher education.--The 
        term `proprietary institution of higher education' has the 
        meaning given the term in section 102(b).
            ``(4) State approval agency.--The term `State approval 
        agency' means any State agency that determines whether an 
        institution of higher education is legally authorized within 
        such State to provide a program of education beyond secondary 
        education.
            ``(5) Veterans service organization.--The term `veterans 
        service organization' means an organization recognized by the 
        Secretary of Veterans Affairs for the representation of 
        veterans under section 5902 of title 38, United States Code.

``SEC. 167. ESTABLISHMENT OF COMMITTEE.

    ``(a) Establishment.--There is established a committee to be known 
as the `Proprietary Education Oversight Coordination Committee' 
(referred to in this title as the `Committee') and to be composed of 
the head (or the designee of such head) of each of the following 
Federal entities:
            ``(1) The Department of Education.
            ``(2) The Bureau of Consumer Financial Protection.
            ``(3) The Department of Justice.
            ``(4) The Securities and Exchange Commission.
            ``(5) The Department of Defense.
            ``(6) The Department of Veterans Affairs.
            ``(7) The Federal Trade Commission.
            ``(8) The Department of Labor.
            ``(9) The Internal Revenue Service.
            ``(10) At the discretion of the President, any other 
        relevant Federal agency or department.
    ``(b) Purposes.--The Committee shall have the following purposes:
            ``(1) Coordinate Federal oversight of proprietary 
        institutions of higher education to--
                    ``(A) improve enforcement of applicable Federal 
                laws and regulations;
                    ``(B) increase accountability of proprietary 
                institutions of higher education to students and 
                taxpayers; and
                    ``(C) ensure the promotion of quality education 
                programs.
            ``(2) Coordinate Federal activities to protect students 
        from unfair, deceptive, abusive, unethical, fraudulent, or 
        predatory practices, policies, or procedures of proprietary 
        institutions of higher education.
            ``(3) Encourage information sharing among agencies related 
        to Federal investigations, audits, or inquiries of proprietary 
        institutions of higher education.
            ``(4) Increase coordination and cooperation between Federal 
        and State agencies, including State Attorneys General and State 
        approval agencies, with respect to improving oversight and 
        accountability of proprietary institutions of higher education.
            ``(5) Develop best practices and consistency among Federal 
        and State agencies in the dissemination of consumer information 
        regarding proprietary institutions of higher education to 
        ensure that students, parents, and other stakeholders have easy 
        access to such information.
    ``(c) Membership.--
            ``(1) Designees.--For any designee described in subsection 
        (a), the head of the member entity shall appoint a high-level 
        official who exercises significant decision making authority 
        for the oversight or investigatory activities and 
        responsibilities related to proprietary institutions of higher 
        education of the respective Federal entity of such head.
            ``(2) Chairperson.--The Secretary of Education or the 
        designee of such Secretary shall serve as the Chairperson of 
        the Committee.
            ``(3) Committee support.--The head of each entity described 
        in subsection (a) shall ensure appropriate staff and officials 
        of such entity are available to support the Committee-related 
        work of such entity.

``SEC. 168. MEETINGS.

    ``(a) Committee Meetings.--The members of the Committee shall meet 
regularly, but not less than once during each quarter of each fiscal 
year, to carry out the purposes described in section 167(b).
    ``(b) Meetings With State Agencies and Stakeholders.--The Committee 
shall meet not less than once each fiscal year, and shall otherwise 
interact regularly, with State Attorneys General, State approval 
agencies, veterans service organizations, and consumer advocates to 
carry out the purposes described in section 167(b).

``SEC. 169. REPORT.

    ``(a) In General.--The Committee shall submit a report each year to 
the authorizing committees, and any other committee of Congress that 
the Committee determines appropriate.
    ``(b) Public Access.--The report described in subsection (a) shall 
be made available to the public in a manner that is easily accessible 
to parents, students, and other stakeholders in accordance with the 
best practices developed under section 167(b)(5).
    ``(c) Contents.--
            ``(1) In general.--The report shall include--
                    ``(A) an accounting of any action (as defined in 
                paragraph (3)) taken by the Federal Government, any 
                member entity of the Committee, or a State--
                            ``(i) to enforce Federal or State laws and 
                        regulations applicable to proprietary 
                        institutions of higher education;
                            ``(ii) to hold proprietary institutions of 
                        higher education accountable to students and 
                        taxpayers; and
                            ``(iii) to promote quality education 
                        programs;
                    ``(B) a summary of complaints against each 
                proprietary institution of higher education received by 
                any member entity of the Committee;
                    ``(C) the data described in paragraph (2) and any 
                other data relevant to proprietary institutions of 
                higher education that the Committee determines 
                appropriate; and
                    ``(D) recommendations of the Committee for such 
                legislative and administrative actions as the Committee 
                determines are necessary to--
                            ``(i) improve enforcement of applicable 
                        Federal laws;
                            ``(ii) increase accountability of 
                        proprietary institutions of higher education to 
                        students and taxpayers; and
                            ``(iii) ensure the promotion of quality 
                        education programs.
            ``(2) Data.--
                    ``(A) Industry-wide data.--The report shall include 
                data on all proprietary institutions of higher 
                education that consists of information regarding--
                            ``(i) the total amount of Federal funds 
                        that proprietary institutions of higher 
                        education received for the previous academic 
                        year, and the percentage of the total amount of 
                        Federal funds provided to institutions of 
                        higher education (as defined in section 102) 
                        for such previous academic year that reflects 
                        such total amount of Federal funds provided to 
                        proprietary institutions of higher education 
                        for such previous academic year;
                            ``(ii) the total amount of Federal funds 
                        that proprietary institutions of higher 
                        education disbursed or delivered, on behalf of 
                        a student, or to a student to be used to attend 
                        an institution of higher education, for the 
                        previous academic year, disaggregated by--
                                    ``(I) educational assistance in the 
                                form of a loan provided under title IV;
                                    ``(II) educational assistance in 
                                the form of a grant provided under 
                                title IV;
                                    ``(III) educational assistance 
                                provided under chapter 33 of title 38, 
                                United States Code;
                                    ``(IV) tuition assistance provided 
                                under section 2007 of title 10, United 
                                States Code;
                                    ``(V) assistance provided under 
                                section 1784a of title 10, United 
                                States Code; and
                                    ``(VI) Federal funds not described 
                                in subclauses (I) through (V);
                            ``(iii) the percentage of the total amount 
                        of Federal funds provided to institutions of 
                        higher education (as defined in section 102) 
                        for such previous academic year for each of the 
                        programs described in subclauses (I) through 
                        (V) of clause (ii) that reflects such total 
                        amount of Federal funds provided to proprietary 
                        institutions of higher education for such 
                        previous academic year for each of such 
                        programs;
                            ``(iv) the average retention and graduation 
                        rates for students pursuing a degree at 
                        proprietary institutions of higher education;
                            ``(v) the average cohort default rate (as 
                        defined in section 435(m)) for proprietary 
                        institutions of higher education, and an annual 
                        list of cohort default rates (as defined in 
                        such section) for all proprietary institutions 
                        of higher education;
                            ``(vi) for careers requiring the passage of 
                        a licensing examination--
                                    ``(I) the passage rate of 
                                individuals who attended a proprietary 
                                institution of higher education taking 
                                such examination to pursue such a 
                                career; and
                                    ``(II) the passage rate of all 
                                individuals taking such exam to pursue 
                                such a career; and
                            ``(vii) the use of private education loans 
                        at proprietary institutions of higher education 
                        that includes--
                                    ``(I) an estimate of the total 
                                number of such loans; and
                                    ``(II) information on the average 
                                debt, default rate, and interest rate 
                                of such loans.
                    ``(B) Data on publicly traded corporations.--
                            ``(i) In general.--The report shall include 
                        data on proprietary institutions of higher 
                        education that are publicly traded 
                        corporations, consisting of information on--
                                    ``(I) any pre-tax profit of such 
                                proprietary institutions of higher 
                                education--
                                            ``(aa) reported as a total 
                                        amount and an average percent 
                                        of revenue for all such 
                                        proprietary institutions of 
                                        higher education; and
                                            ``(bb) reported for each 
                                        such proprietary institution of 
                                        higher education;
                                    ``(II) revenue for such proprietary 
                                institutions of higher education spent 
                                on recruiting and marketing activities, 
                                student instruction, and student 
                                support services, reported--
                                            ``(aa) as a total amount 
                                        and an average percent of 
                                        revenue for all such 
                                        proprietary institutions of 
                                        higher education; and
                                            ``(bb) for each such 
                                        proprietary institution of 
                                        higher education;
                                    ``(III) total compensation packages 
                                of the executive officers of each such 
                                proprietary institution of higher 
                                education;
                                    ``(IV) a list of institutional loan 
                                programs offered by each such 
                                proprietary institution of higher 
                                education that includes information on 
                                the default and interest rates of such 
                                programs; and
                                    ``(V) the data described in clauses 
                                (ii) and (iii).
                            ``(ii) Disaggregated by ownership.--The 
                        report shall include data on proprietary 
                        institutions of higher education that are 
                        publicly traded corporations, disaggregated by 
                        corporate or parent entity, brand name, and 
                        campus, consisting of--
                                    ``(I) the total cost of attendance 
                                for each program at each such 
                                proprietary institution of higher 
                                education, and information comparing 
                                such total cost for each such program 
                                to--
                                            ``(aa) the total cost of 
                                        attendance for each program at 
                                        each public institution of 
                                        higher education; and
                                            ``(bb) the average total 
                                        cost of attendance for each 
                                        program at all institutions of 
                                        higher education, including 
                                        such institutions that are 
                                        public and such institutions 
                                        that are private;
                                    ``(II) total enrollment, 
                                disaggregated by--
                                            ``(aa) individuals enrolled 
                                        in programs taken online; and
                                            ``(bb) individuals enrolled 
                                        in programs that are not taken 
                                        online;
                                    ``(III) the average retention and 
                                graduation rates for students pursuing 
                                a degree at such proprietary 
                                institutions of higher education;
                                    ``(IV) the percentage of students 
                                enrolled in such proprietary 
                                institutions of higher education who 
                                complete a program of such an 
                                institution within--
                                            ``(aa) the standard period 
                                        of completion for such program; 
                                        and
                                            ``(bb) a period that is 150 
                                        percent of such standard period 
                                        of completion;
                                    ``(V) the total cost of attendance 
                                for each program at such proprietary 
                                institutions of higher education;
                                    ``(VI) the average cohort default 
                                rate, as defined in section 435(m), for 
                                such proprietary institutions of higher 
                                education, and an annual list of cohort 
                                default rates (as defined in such 
                                section) for all proprietary 
                                institutions of higher education;
                                    ``(VII) the median educational debt 
                                incurred by students who complete a 
                                program at such a proprietary 
                                institution of higher education;
                                    ``(VIII) the median educational 
                                debt incurred by students who start but 
                                do not complete a program at such a 
                                proprietary institution of higher 
                                education;
                                    ``(IX) the job placement rate for 
                                students who complete a program at such 
                                a proprietary institution of higher 
                                education and the type of employment 
                                obtained by such students;
                                    ``(X) for careers requiring the 
                                passage of a licensing examination, the 
                                rate of individuals who attended such a 
                                proprietary institution of higher 
                                education and passed such an 
                                examination; and
                                    ``(XI) the number of complaints 
                                from students enrolled in such 
                                proprietary institutions of higher 
                                education who have submitted a 
                                complaint to any member entity of the 
                                Committee.
                            ``(iii) Department of defense and veterans 
                        affairs assistance.--
                                    ``(I) In general.--To the extent 
                                practicable, the report shall provide 
                                information on the data described in 
                                clause (ii) for individuals using, to 
                                pay for the costs of attending such a 
                                proprietary institution of higher 
                                education, Federal funds provided under 
                                title 10, United States Code or title 
                                38, United States Code.
                                    ``(II) Revenue.--The report shall 
                                provide information on the revenue of 
                                proprietary institutions of higher 
                                education that are publicly traded 
                                corporations that is derived from the 
                                Federal funds described in subclause 
                                (I).
                    ``(C) Comparison data.--To the extent practicable, 
                the report shall provide information comparing the data 
                described in subparagraph (B) for proprietary 
                institutions of higher education that are publicly 
                traded corporations with such data for public 
                institutions of higher education disaggregated by 
                State.
            ``(3) Accounting of any action.--For the purposes of 
        paragraph (1)(A), the term `any action' shall include--
                    ``(A) a complaint filed by a Federal or State 
                agency in a local, State, Federal, or tribal court;
                    ``(B) an administrative proceeding by a Federal or 
                State agency involving noncompliance of any applicable 
                law or regulation; or
                    ``(C) any other review, audit, or administrative 
                process by any Federal or State agency that results in 
                a penalty, suspension, or termination from any Federal 
                or State program.

``SEC. 170. WARNING LIST FOR PARENTS AND STUDENTS.

    ``(a) In General.--Each academic year, the Committee shall publish 
a list to be known as the `Warning List for Parents and Students' to be 
comprised of proprietary institutions of higher education--
            ``(1) that have engaged in illegal activity during the 
        previous academic year as determined by a Federal or State 
        court;
            ``(2) that have entered into a settlement resulting in a 
        monetary payment;
            ``(3) that have had any higher education program withdrawn 
        or suspended; or
            ``(4) for which the Committee has sufficient evidence of 
        widespread or systemic unfair, deceptive, abusive, unethical, 
        fraudulent, or predatory practices, policies, or procedures 
        that pose a threat to the academic success, financial security, 
        or general best interest of students.
    ``(b) Determinations.--In making a determination pursuant to 
subsection (a)(4), the Committee may consider evidence that includes 
the following:
            ``(1) Any consumer complaint collected by any member entity 
        of the Committee.
            ``(2) Any complaint filed by a Federal or State agency in a 
        Federal, State, local, or tribal court.
            ``(3) Any administrative proceeding by a Federal or State 
        agency involving noncompliance of any applicable law or 
        regulation.
            ``(4) Any other review, audit, or administrative process by 
        any Federal or State agency that results in a penalty, 
        suspension, or termination from any Federal or State program.
            ``(5) Data or information submitted by a proprietary 
        institution of higher education to any accrediting agency or 
        association recognized by the Secretary of Education pursuant 
        to section 496 or the findings or adverse actions of any such 
        accrediting agency or association.
            ``(6) Information submitted by a proprietary institution of 
        higher education to any member entity of the Committee.
            ``(7) Any other evidence that the Committee determines 
        relevant in making a determination pursuant to subsection 
        (a)(4).
    ``(c) Publication.--Not later than July 1 of each fiscal year, the 
Committee shall publish the list described in subsection (a) 
prominently and in a manner that is easily accessible to parents, 
students, and other stakeholders in accordance with any best practices 
developed under section 167(b)(5).''.

                TITLE II--IMPROVING EDUCATOR PREPARATION

SEC. 201. IMPROVING EDUCATOR PREPARATION.

    Title II (20 U.S.C. 1021 et seq.) is amended to read as follows:

               ``TITLE II--IMPROVING EDUCATOR PREPARATION

``SEC. 200. DEFINITIONS.

    ``In this title:
            ``(1) Applied learning.--The term `applied learning' means 
        a strategy that--
                    ``(A) engages students in opportunities to apply 
                rigorous academic content aligned with postsecondary-
                level expectations to real world experience, through 
                such means as work experience, work-based learning, 
                problem-based learning, project-based learning or 
                service-learning; and
                    ``(B) develops students' cognitive competencies and 
                pertinent employability skills.
            ``(2) Clinical training.--The term `clinical training' 
        means sustained and high-quality preservice experiences based 
        on scientifically valid research to further develop the 
        teaching skills or leadership skills of prospective teachers or 
        school leaders, including (as applicable) early childhood 
        educators. Such experiences shall include each of the 
        following:
                    ``(A) Experiential clinical training in an 
                elementary school or secondary school that, to the 
                extent practicable, is aligned with the grade level and 
                subject area where the teacher or school leader will be 
                placed upon program completion, and that includes--
                            ``(i) opportunities for teacher or school 
                        leader candidates to develop and demonstrate 
                        teaching skills or leadership skills as 
                        supervised classroom teachers or school leaders 
                        to better prepare such teachers or school 
                        leaders to meet the needs of serving in high-
                        need local educational agencies, high-need 
                        schools, or schools in rural areas, or being a 
                        teacher in a high-need subject or field;
                            ``(ii) opportunities to work with diverse 
                        learners;
                            ``(iii) ongoing assessment and regular 
                        opportunities for feedback for teacher 
                        candidates or school leader candidates from 
                        faculty and current teachers or school leaders;
                            ``(iv) aligning school-based clinical 
                        experiences with coursework in educational 
                        theory and content through supervised clinical 
                        practice and regular feedback on the 
                        development of teaching skills or leadership 
                        skills and performance that include integrating 
                        social and emotional development, building a 
                        positive classroom or school culture and 
                        climate, and developing effective classroom 
                        management or school leadership techniques;
                            ``(v) for teachers, developing the ability 
                        to--
                                    ``(I) link teaching practice to 
                                student learning;
                                    ``(II) create effective teaching 
                                units and lesson plans that provide all 
                                students with the ability to apply 
                                content knowledge, think critically, 
                                solve complex problems, communicate 
                                effectively, and work collaboratively 
                                with their peers;
                                    ``(III) develop and implement 
                                formative and interim assessments to 
                                diagnose student learning and modify 
                                instruction as a result of the data 
                                derived from such assessments;
                                    ``(IV) implement evidence-based 
                                differentiated instruction strategies; 
                                and
                                    ``(V) teach diverse learners, 
                                including students with special needs 
                                and English learners;
                            ``(vi) for school leaders, developing the 
                        ability to--
                                    ``(I) lead effective teams of 
                                teachers;
                                    ``(II) identify and model effective 
                                classroom practices;
                                    ``(III) learn how to recruit and 
                                support effective teachers; and
                                    ``(IV) engage community members and 
                                parents.
                    ``(B) Align the coursework offered at the educator 
                preparation entity with the needs of the local 
                educational agencies, including the academic needs of 
                students, served by the educator preparation entity and 
                the clinical experiences offered under subparagraph 
                (A).
                    ``(C) Provide high-quality mentoring.
                    ``(D) Be offered over the course of an educator 
                preparation program.
                    ``(E) Be designed through collaboration between 
                faculty or staff at the educator preparation entity and 
                employees, including teachers and school leaders, of 
                the local educational agencies served by the educator 
                preparation entity.
                    ``(F) Provide support and training for faculty or 
                staff at educator preparation entities and for 
                individuals who serve as mentors for new and 
                prospective teachers or school leaders.
            ``(3) Core academic subjects.--The term `core academic 
        subjects' has the meaning given the term in section 9101 of the 
        Elementary and Secondary Education Act of 1965.
            ``(4) Early childhood educator.--The term `early childhood 
        educator' means an individual with primary responsibility for 
        the education of children in an early childhood education 
        program.
            ``(5) Educational service agency.--The term `educational 
        service agency' has the meaning given the term in section 9101 
        of the Elementary and Secondary Education Act of 1965.
            ``(6) Educator preparation entity.--The term `educator 
        preparation entity' means a teacher preparation entity or a 
        school leader preparation entity.
            ``(7) Educator preparation program.--The term `educator 
        preparation program' means a teacher preparation program or a 
        school leader preparation program offered by an educator 
        preparation entity, including an early childhood education 
        teacher or school leader program.
            ``(8) Educator residency program.--The term `educator 
        residency program' means a teacher residency program or a 
        school leader residency program within a teacher preparation 
        program or school leader preparation program.
            ``(9) Effective literacy instruction.--The term `effective 
        literacy instruction' means literacy instruction that--
                    ``(A) includes age-appropriate, explicit, 
                systematic, and intentional instruction in phonological 
                awareness, phonic decoding, vocabulary, language 
                structure, reading fluency, and reading comprehension;
                    ``(B) includes age-appropriate, explicit 
                instruction in writing, including opportunities for 
                children to write with clear purposes, with critical 
                reasoning appropriate to the topic and purpose, and 
                with specific instruction and feedback from 
                instructional staff;
                    ``(C) uses differentiated instructional approaches, 
                including individual and small group instruction and 
                discussion;
                    ``(D) uses age-appropriate, valid, and reliable 
                screening assessments, diagnostic assessments, 
                formative assessment processes, and summative 
                assessments to identify a child's learning needs, to 
                inform instruction, and to monitor the child's progress 
                and the effects of instruction;
                    ``(E) uses strategies to enhance children's 
                motivation to read and write and children's engagement 
                in self-directed learning;
                    ``(F) incorporates the principles of universal 
                design for learning;
                    ``(G) depends on teachers' collaboration in 
                planning, instruction, and assessing a child's progress 
                and on continuous professional learning; and
                    ``(H) links literacy instruction to the challenging 
                academic content standards under section 1111(b)(1) of 
                the Elementary and Secondary Education Act of 1965, 
                including the ability to navigate, understand, and 
                write about, complex print and digital subject matter.
            ``(10) Eligible partnership.--Except as otherwise provided 
        in section 216, the term `eligible partnership' means an entity 
        that--
                    ``(A) shall include--
                            ``(i) a high-need local educational agency;
                            ``(ii)(I) a high-need school or a 
                        consortium of high-need schools served by the 
                        high-need local educational agency; or
                            ``(II) as applicable, a high-need early 
                        childhood education program;
                            ``(iii) a partner institution; and
                            ``(iv) a school, department, or educator 
                        preparation program within such partner 
                        institution; and
                    ``(B) may include any of the following:
                            ``(i) The Governor of the State.
                            ``(ii) The State educational agency.
                            ``(iii) The State board of education.
                            ``(iv) The State agency for higher 
                        education.
                            ``(v) A school or department of arts and 
                        sciences within such partner institution.
                            ``(vi) A business.
                            ``(vii) A public or private nonprofit 
                        educational organization.
                            ``(viii) An educational service agency.
                            ``(ix) A teacher organization.
                            ``(x) A high-performing local educational 
                        agency, or a consortium of such local 
                        educational agencies, that can serve as a 
                        resource to the partnership.
                            ``(xi) A charter school (as defined in 
                        section 5210 of the Elementary and Secondary 
                        Education Act of 1965).
                            ``(xii) A school or department within the 
                        partner institution that focuses on psychology 
                        and human development.
                            ``(xiii) A school or department within the 
                        partner institution with comparable expertise 
                        in the disciplines of teaching, learning, and 
                        child and adolescent development.
                            ``(xiv) An entity operating a program that 
                        provides alternative routes to State 
                        certification of teachers or school leaders.
            ``(11) English learner.--The term `English learner' means 
        an individual--
                    ``(A) who is aged 3 through 21;
                    ``(B) who is enrolled or preparing to enroll in an 
                elementary school or secondary school;
                    ``(C)(i) who was not born in the United States;
                    ``(ii) whose native language is a language other 
                than English;
                    ``(iii)(I) who is a Native American or Alaska 
                Native, or a native resident of the outlying areas; and
                    ``(II) who comes from an environment where a 
                language other than English has had a significant 
                impact on the individual's level of English language 
                proficiency; or
                    ``(iv) who is migratory, whose native language is a 
                language other than English, and who comes from an 
                environment where a language other than English is 
                dominant; and
                    ``(D) whose difficulties in speaking, reading, 
                writing, or understanding the English language may be 
                sufficient to deny the individual--
                            ``(i) the ability to meet or exceed the 
                        State challenging student academic achievement 
                        standards under section 1111(b)(1) of the 
                        Elementary and Secondary Education Act of 1965 
                        in a subject for the individual's grade level, 
                        as determined based on the State academic 
                        assessments described in section 1111(b)(3) of 
                        such Act;
                            ``(ii) the ability to successfully achieve 
                        in classrooms where the language of instruction 
                        is English; or
                            ``(iii) the opportunity to participate 
                        fully in society.
            ``(12) High-need early childhood education program.--The 
        term `high-need early childhood education program' means an 
        early childhood education program serving children from low-
        income families that is located within the geographic area 
        served by a high-need local educational agency, particularly 
        focused on a prekindergarten through third grade continuum.
            ``(13) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i) for which not less than 20 percent of the 
                children served by the agency are children from low-
                income families;
                    ``(ii) that serves not fewer than 10,000 children 
                from low-income families;
                    ``(iii) that meets the eligibility requirements for 
                funding under the Small, Rural School Achievement 
                Program under section 6211(b) of the Elementary and 
                Secondary Education Act of 1965; or
                    ``(iv) that meets the eligibility requirements for 
                funding under the Rural and Low-Income School Program 
                under section 6221(b) of the Elementary and Secondary 
                Education Act of 1965; and
                    ``(B)(i) for which 1 or more schools served by the 
                agency is identified by the State as a low-performing 
                school under section 1116 of the Elementary and 
                Secondary Education Act of 1965 or identified as 
                eligible to receive funds under section 1003(g) of such 
                Act; or
                    ``(ii) for which there is--
                            ``(I) a shortage of teachers in high-need 
                        subjects or fields; or
                            ``(II) a high teacher turnover rate.
            ``(14) High-need school.--The term `high-need school' 
        means--
                    ``(A) an elementary school or middle school in 
                which not less than 50 percent of the enrolled students 
                are children from low-income families; or
                    ``(B) a high school in which not less than 40 
                percent of the enrolled students are children from low-
                income families, which may be calculated using 
                comparable data from feeder schools.
            ``(15) High-quality professional development.--The term 
        `high-quality professional development' means activities based 
        on scientifically valid research that are coordinated and 
        aligned to increase the effectiveness of teachers or school 
        leaders and are regularly assessed to determine the activities' 
        effectiveness, and that--
                    ``(A) are designed and implemented to improve 
                student achievement and classroom practice;
                    ``(B) are aligned with--
                            ``(i) State challenging academic content 
                        standards and State challenging student 
                        academic achievement standards adopted under 
                        section 1111(b) of the Elementary and Secondary 
                        Education Act of 1965;
                            ``(ii) related academic and school 
                        improvement goals of the school, local 
                        educational agency, and, as appropriate, 
                        statewide and local curricula;
                            ``(iii) for teachers, rigorous teaching 
                        standards; and
                            ``(iv) for school leaders, rigorous 
                        standards for leadership skills;
                    ``(C) increase teachers' or school leaders'--
                            ``(i) knowledge and understanding about how 
                        students learn;
                            ``(ii) academic content knowledge;
                            ``(iii) knowledge and understanding about 
                        the link between social and emotional 
                        development and student outcomes;
                            ``(iv) ability to analyze student work and 
                        achievement data from multiple sources, 
                        including teacher developed assessments and how 
                        to adjust instructional strategies, 
                        assessments, and materials based on such 
                        analysis;
                            ``(v) ability to instruct students with 
                        disabilities and English learners so that such 
                        students with disabilities and English learners 
                        are able to meet the State challenging academic 
                        content standards and State challenging student 
                        academic achievement standards;
                            ``(vi) ability to effectively manage a 
                        classroom, including the ability to--
                                    ``(I) implement multi-tiered 
                                systems of support;
                                    ``(II) create a positive learning 
                                environment that conveys high 
                                expectations for all students; and
                                    ``(III) equitably implement school 
                                discipline policies;
                            ``(vii) ability to lead teams of effective 
                        teachers, in the case of school leaders;
                            ``(viii) ability to implement opportunities 
                        for applied learning;
                            ``(ix) knowledge and understanding of 
                        culturally relevant practices; and
                            ``(x) teaching skills and school leadership 
                        skills;
                    ``(D) are informed by, and aligned with, such 
                teachers' and school leaders' evaluations;
                    ``(E) are collaborative, data-driven, and 
                classroom- or school-focused;
                    ``(F) provide the teacher or school leader with 
                high-quality feedback with actionable steps to improve 
                their practice;
                    ``(G) are sustained, intensive, and job-embedded, 
                and not limited in scope to a 1-day or short-term 
                workshop or conference;
                    ``(H) are, as appropriate, designed to--
                            ``(i) provide teachers or school leaders 
                        with the knowledge and skills to work more 
                        effectively with parents and families; and
                            ``(ii) where applicable, address the 
                        transition from prekindergarten to elementary 
                        school, including issues related to school 
                        readiness across all major domains of early 
                        learning, as well as transitions from 
                        elementary school to middle school and middle 
                        school to high school; and
                    ``(I) for school leaders, provide comprehensive 
                opportunities to practice effective strategies and help 
                school leaders develop the abilities to lead effective 
                teams of teachers and maintain active engagement with 
                families and community organizations.
            ``(16) Highly competent.--The term `highly competent', when 
        used with respect to an early childhood educator, means an 
        educator--
                    ``(A) with specialized education and training in 
                development and education of young children from birth 
                until entry into kindergarten, including children with 
                disabilities and English learners;
                    ``(B) with--
                            ``(i) a baccalaureate degree in an academic 
                        major in the arts and sciences; or
                            ``(ii) an associate's degree in a related 
                        educational area; and
                    ``(C) who has demonstrated a high level of 
                knowledge and use of content and pedagogy in the 
                relevant areas associated with quality early childhood 
                education.
            ``(17) Induction program.--The term `induction program' 
        means a formalized program for new teachers or school leaders 
        during not less than the first 2 years of teaching or leading a 
        school that is designed to provide support for, improve the 
        professional performance of, and advance the retention of 
        beginning teachers or school leaders. Such program shall 
        promote effective teaching or leadership skills and shall 
        include the following components:
                    ``(A) High-quality mentoring.
                    ``(B) Periodic, structured time for collaboration 
                and observation opportunities with teachers or school 
                leaders, as well as interdisciplinary collaboration 
                among highly effective teachers, school leaders, 
                faculty, researchers, other educators, and other staff 
                who prepare new teachers or school leaders.
                    ``(C) The application of empirically based practice 
                and scientifically valid research on instructional and 
                behavioral interventions.
                    ``(D) Opportunities for new teachers or school 
                leaders to draw directly on the expertise of mentors, 
                faculty, local educational agency personnel, and 
                researchers to support the integration of empirically 
                based practice and scientifically valid research with 
                practice.
                    ``(E) The development of content expertise.
                    ``(F) Faculty who--
                            ``(i) model the integration of research and 
                        practice in the classroom and innovative 
                        practices that support the acquisition and 
                        transferability of college- and career-ready 
                        skills, including critical thinking, complex 
                        problem solving, effective communication and 
                        collaboration, such as through project-based 
                        and applied learning;
                            ``(ii) assist new teachers and school 
                        leaders with the effective use and integration 
                        of technology in instruction;
                            ``(iii) for teachers, assist in the 
                        creation and use of teacher-developed 
                        assessments for the purpose of informing and 
                        targeting instructional practice;
                            ``(iv) demonstrate the content knowledge 
                        and skills necessary to be effective in 
                        advancing student achievement; and
                            ``(v) are able to substantially participate 
                        in the early childhood program or elementary 
                        school or secondary school classroom setting, 
                        as applicable, which may include receiving 
                        release time or workload credit for such 
                        participation.
                    ``(G) Assistance with the understanding of data, 
                particularly student assessment achievement data, 
                including data from interim, formative, and summative 
                assessments and the application of such data in 
                classroom instruction or school leadership.
                    ``(H) Regular, structured observation and 
                evaluation of new teachers or school leaders, including 
                post-observation feedback and dialogue, by multiple-
                trained evaluators, using valid and reliable measures 
                of teaching and leadership skills.
            ``(18) Low-income family.--The term `low-income family' 
        means a family who--
                    ``(A) has a student who is eligible for a free or 
                reduced priced lunch under the Richard B. Russell 
                National School Lunch Act;
                    ``(B) is eligible for means tested benefits or 
                public assistance at the local, State, or Federal 
                level; or
                    ``(C) lives in a high-poverty area or has a student 
                who attends an elementary school or high school with an 
                attendance area in a high-poverty area.
            ``(19) Mentor.--The term `mentor' means an experienced 
        educator who shall--
                    ``(A) provide opportunities for prospective or new 
                teachers or school leaders to develop and demonstrate 
                teaching skills or school leadership skills to better 
                prepare such prospective or new teachers or school 
                leaders to meet the unique needs of serving in high-
                need local educational agencies, high-need schools, or 
                schools in rural areas, or being a teacher in a high-
                need subject or field;
                    ``(B) provide ongoing assessment of and regular 
                feedback to mentees;
                    ``(C) possess--
                            ``(i) a demonstrated record of strong 
                        teaching skills or leadership skills and 
                        improving student achievement;
                            ``(ii) strong verbal and written 
                        communication skills; and
                            ``(iii) knowledge, skills, and attitudes 
                        to--
                                    ``(I) establish and maintain a 
                                professional learning community that 
                                uses data, feedback, and coaching to 
                                improve mentee performance; and
                                    ``(II) create and maintain a 
                                learning culture for mentees that 
                                provides a climate conducive to the 
                                professional development of the 
                                mentees; and
                    ``(D) have a demonstrated record of improving 
                student achievement.
            ``(20) Mentoring.--The term `mentoring' means the advising 
        of prospective or new educators through a program that includes 
        the following:
                    ``(A) Clear criteria for the selection of mentors 
                that takes into account the mentor's effectiveness.
                    ``(B) Provides high-quality training for such 
                mentors in how to support teachers or school leaders 
                effectively, including--
                            ``(i) for teachers, instructional 
                        strategies for literacy instruction; and
                            ``(ii) for teachers or school leaders, 
                        instruction in classroom management or school 
                        management techniques, including approaches 
                        that improve the schoolwide climate for 
                        learning, such as social and emotional 
                        development strategies and multi-tiered systems 
                        of support.
                    ``(C) Provides regularly scheduled time for 
                collaboration, examination of student work and 
                achievement data, joint professional development 
                opportunities, and ongoing opportunities for mentors 
                and mentees to observe each other's teaching or 
                leading, and identify and address areas for 
                improvement.
                    ``(D) Matches mentees with mentors in the same 
                field, grade, grade span, or subject area.
                    ``(E) Provides paid release time for mentors, as 
                applicable.
            ``(21) Partner institution.--The term `partner institution' 
        means a nonprofit institution of higher education, which may 
        include a 2-year nonprofit institution of higher education 
        offering a dual program with a 4-year nonprofit institution of 
        higher education, participating in an eligible partnership that 
        has a teacher preparation program--
                    ``(A) whose graduates exhibit strong performance on 
                State-determined qualifying assessments for new 
                teachers through--
                            ``(i) demonstrating that 80 percent or more 
                        of the graduates of the program who intend to 
                        enter the field of teaching have passed all of 
                        the applicable State qualification assessments 
                        for new teachers, which shall include an 
                        assessment of each prospective teacher's 
                        subject matter knowledge in the content area in 
                        which the teacher intends to teach; or
                            ``(ii) being ranked among the highest-
                        performing teacher preparation programs in the 
                        State as determined by the State using criteria 
                        consistent with the requirements for the State 
                        report card under section 210; and
                    ``(B) that requires each teacher or school leader 
                candidate in the program--
                            ``(i) to meet high academic standards or 
                        demonstrate a record of success, as determined 
                        by the institution (including prior to entering 
                        and being accepted into a program), and 
                        participate in intensive clinical training;
                            ``(ii) to become highly effective; and
                            ``(iii) preparing to become an early 
                        childhood educator, to meet degree 
                        requirements, as established by the State, and 
                        become highly competent.
            ``(22) Principles of scientific research.--The term 
        `principles of scientific research' means principles of 
        research that--
                    ``(A) apply rigorous, systematic, and objective 
                methodology to obtain reliable and valid knowledge 
                relevant to education activities and programs;
                    ``(B) present findings and make claims that are 
                appropriate to, and supported by, the methods that have 
                been employed; and
                    ``(C) include, appropriate to the research being 
                conducted--
                            ``(i) use of systematic, empirical methods 
                        that draw on observation or experiment;
                            ``(ii) use of data analyses that are 
                        adequate to support the general findings;
                            ``(iii) reliance on measurements or 
                        observational methods that provide reliable and 
                        generalizable findings;
                            ``(iv) strong claims of causal 
                        relationships, only with research designs that 
                        eliminate plausible competing explanations for 
                        observed results, such as random-assignment 
                        experiments;
                            ``(v) presentation of studies and methods 
                        in sufficient detail and clarity to allow for 
                        replication or, at a minimum, to offer the 
                        opportunity to build systematically on the 
                        findings of the research;
                            ``(vi) acceptance by a peer-reviewed 
                        journal or critique by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review; and
                            ``(vii) consistency of findings across 
                        multiple studies or sites to support the 
                        generality of results and conclusions.
            ``(23) Recent program graduate.--The term `recent program 
        graduate' means--
                    ``(A) an individual who has graduated from a 
                teacher preparation program or school leader 
                preparation program not earlier than 3 years preceding 
                the date of the determination; or
                    ``(B) an alternative route participant who, within 
                the 3 years preceding the date of the determination, 
                received a level of certification or licensure that 
                allows the participant to serve as the teacher or 
                school leader of record in the State in which the 
                participant is employed.
            ``(24) Satisfaction survey.--The term `satisfaction survey' 
        means a survey instrument designed to collect qualitative and 
        quantitative data on perceptions of whether new teachers or 
        school leaders possess the skills needed to succeed in the 
        classroom, including effective teaching or school leadership 
        skills.
            ``(25) Scientifically valid research.--The term 
        `scientifically valid research' includes applied research, 
        basic research, and field-initiated research in which the 
        rationale, design, and interpretation are soundly developed in 
        accordance with principles of scientific research.
            ``(26) School leader.--The term `school leader' means a 
        principal, assistant principal, or individual who--
                    ``(A) is an employee or officer of a school who is 
                responsible for--
                            ``(i) the daily instructional leadership 
                        and managerial operations of the school; and
                            ``(ii) creating the optimum conditions for 
                        student learning; or
                    ``(B) is an early childhood program leader or 
                director.
            ``(27) School leader preparation entity.--The term `school 
        leader preparation entity' means an institution of higher 
        education or a nonprofit organization, including those 
        institutions or organizations that provide alternative routes 
        to certification, that is approved by the State to prepare 
        school leaders to be effective.
            ``(28) School leader preparation program.--The term `school 
        leader preparation program' means a program offered by a school 
        leader preparation entity, whether traditional or alternative 
        route, that is approved by the State to prepare school leaders 
        to be effective and that leads to a specific State 
        certification to be a school leader.
            ``(29) School leader residency program.--The term `school 
        leader residency program' means a school-based school leader 
        preparation program in which a prospective school leader--
                    ``(A) for 1 academic year, acts as a school leader 
                or assistant school leader alongside a mentor school 
                leader;
                    ``(B) receives concurrent instruction during the 
                year described in subparagraph (A) from an educator 
                preparation entity, which courses may be taught by 
                local educational agency personnel or residency program 
                faculty;
                    ``(C) acquires and demonstrates effective school 
                leadership skills;
                    ``(D) prior to completion of the program, attains 
                full State certification of licensure; and
                    ``(E) in the case of a postbaccalaureate or 
                master's residency program, acquires a master's degree 
                not later than 24 months after beginning the program.
            ``(30) School leadership skills.--The term `school 
        leadership skills' means skills that enable a school leader 
        to--
                    ``(A) recruit, train, supervise, support, retain, 
                and evaluate teachers and other staff;
                    ``(B) develop teams of effective school staff, and 
                distributing among members of such teams 
                responsibilities for leading and improving their 
                schools;
                    ``(C) establish a positive school culture and 
                learning community where school leaders and teachers--
                            ``(i) share a commitment to improving 
                        student outcomes and performances for all 
                        students, including students with disabilities 
                        and English learners; and
                            ``(ii) set a continuous cycle of collective 
                        inquiry and improvement in which teachers and 
                        school leaders work together on a regular basis 
                        to analyze and improve the alignment and 
                        effectiveness of curriculum, instruction, 
                        learning, and assessment;
                    ``(D) understand how students learn and develop, 
                and use this knowledge to set high expectations for 
                student achievement and support student success;
                    ``(E) address the unique needs of specific student 
                populations served, such as students with disabilities, 
                students who are English learners, and students who are 
                homeless or in foster care;
                    ``(F) manage resources and school time to support 
                high-quality instruction and improvements in student 
                achievement; and
                    ``(G) actively engage and work effectively with 
                students' parents and other members of the community.
            ``(31) Student growth.--The term `student growth' means a 
        change in student achievement for an individual student between 
        2 or more points in time. For the purpose of determining 
        student growth, measures of student achievement include--
                    ``(A) for grades and subjects in which assessments 
                are required under section 1111(b)(3) of the Elementary 
                and Secondary Education Act of 1965, the student's 
                score on such assessments, and, as appropriate, other 
                multiple measures of student learning, such as those 
                designated under paragraph (B); and
                    ``(B) for grades and subjects for which such 
                assessments are not required, alternative statewide 
                measures of student learning and performance, such as 
                student results on pre-tests and end-of-course tests, 
                and objective performance-based assessments, and 
                student performance on English language proficiency 
                assessments.
            ``(32) Teacher in a high-need subject or field.--The term 
        `teacher in a high-need subject or field' means a teacher of--
                    ``(A) students with disabilities;
                    ``(B) English learners; or
                    ``(C) science, technology, engineering, or 
                mathematics.
            ``(33) Teacher performance assessment.--The term `teacher 
        performance assessment' means an assessment used to measure 
        teacher performance that is approved by the State and is--
                    ``(A) based on professional teaching standards;
                    ``(B) used to measure the effectiveness of a 
                teacher's--
                            ``(i) curriculum planning;
                            ``(ii) instruction of students, including 
                        appropriate plans and modifications for 
                        students who are English learners and students 
                        who are children with disabilities;
                            ``(iii) assessment of students, including 
                        analysis of evidence of student learning; and
                            ``(iv) ability to advance student learning;
                    ``(C) validated based on professional assessment 
                standards;
                    ``(D) reliably scored by trained evaluators, with 
                appropriate oversight of the process to ensure 
                consistency; and
                    ``(E) used to support continuous improvement of 
                educator practice.
            ``(34) Teacher preparation entity.--The term `teacher 
        preparation entity' means an institution of higher education or 
        a nonprofit organization, including those that provide 
        alternative routes to certification, that is approved by the 
        State to prepare teachers to be effective.
            ``(35) Teacher preparation program.--The term `teacher 
        preparation program' means a program, whether traditional or 
        alternative route, that is approved by the State to prepare 
        teachers to be effective and that leads to a specific State 
        certification to be a teacher.
            ``(36) Teacher residency program.--The term `teacher 
        residency program' means a school-based teacher preparation 
        program in which a prospective teacher--
                    ``(A) for 1 academic year, teaches alongside a 
                mentor teacher, who is the teacher of record;
                    ``(B) receives concurrent instruction during the 
                year described in subparagraph (A) from an educator 
                preparation entity, which courses may be taught by 
                local educational agency personnel or residency program 
                faculty, in the teaching of the content area in which 
                the teacher will become certified or licensed;
                    ``(C) acquires teaching skills;
                    ``(D) prior to completion of the program, attains 
                full State certification of licensure and is prepared 
                to be effective; and
                    ``(E) in the case of a postbaccalaureate or 
                master's residency program, acquires a master's degree 
                not later than 24 months after beginning the program.
            ``(37) Teaching skills.--The term `teaching skills' means 
        skills that enable a teacher to--
                    ``(A) increase student learning, achievement, and 
                the ability to apply knowledge;
                    ``(B) effectively convey and explain academic 
                subject matter;
                    ``(C) effectively teach higher-order analytical, 
                critical thinking, evaluation, problem-solving, and 
                communication skills;
                    ``(D) employ strategies grounded in the disciplines 
                of teaching and learning that--
                            ``(i) are based on empirically-based 
                        practice and scientifically valid research, 
                        where applicable, related to teaching and 
                        learning;
                            ``(ii) are specific to academic subject 
                        matter;
                            ``(iii) are culturally responsive;
                            ``(iv) integrate social and emotional 
                        development and academic achievement; and
                            ``(v) focus on the identification of 
                        students' specific learning needs and develop 
                        the skills needed to promote successful 
                        learning, particularly among students with 
                        disabilities, English learners, students who 
                        are gifted and talented, and students with low 
                        literacy levels, and the tailoring of academic 
                        instruction to such needs;
                    ``(E) conduct and utilize the results of an ongoing 
                assessment of student learning, which may include the 
                use of formative assessments, interim assessments, 
                performance-based assessments, project-based 
                assessments, or portfolio assessments, that measures 
                the full range of academic standards and higher-order 
                thinking skills (including application, analysis, 
                synthesis, and evaluation);
                    ``(F) effectively manage a classroom, including the 
                ability to implement multi-tiered systems of support, 
                create a positive learning environment that conveys 
                high expectations for all students, and equitably 
                implement school discipline policies;
                    ``(G) communicate and work with parents, and 
                involve parents in their children's education;
                    ``(H) use, in the case of an early childhood 
                educator, age-appropriate and developmentally 
                appropriate strategies and practices for children in 
                early childhood education programs; and
                    ``(I) teach, in the case of a career and technical 
                education teacher, technical skills to industry 
                standards in a classroom setting and possess strategies 
                for incorporating content from non-career and technical 
                education courses and standards for college and career 
                into career and technical education courses.

             ``PART A--EDUCATOR QUALITY PARTNERSHIP GRANTS

``SEC. 201. PURPOSES.

    ``The purposes of this part are to--
            ``(1) improve student achievement in high-need schools;
            ``(2) improve the quality of prospective and new teachers 
        or school leaders by improving the preparation of prospective 
        teachers or school leaders and enhancing professional 
        development activities for new teachers or school leaders;
            ``(3) hold educator preparation entities at institutions of 
        higher education accountable for preparing highly effective 
        teachers or school leaders;
            ``(4) recruit well qualified individuals, including members 
        of groups underrepresented in teaching and individuals from 
        other occupations, as teachers and school leaders; and
            ``(5) meet the staffing needs of high-need local 
        educational agencies and high-need schools through 
        collaborative partnerships with educator preparation programs 
        within institutions of higher education.

``SEC. 202. GRANTS TO IMPROVE EDUCATOR PREPARATION AND SUPPORT EDUCATOR 
              RESIDENCIES.

    ``(a) Program Authorized.--From amounts made available under 
subsection (g), the Secretary is authorized to award grants, on a 
competitive basis, to eligible partnerships, to carry out the 
activities described in this section.
    ``(b) Application.--An eligible partnership that desires to receive 
a grant under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such information as 
the Secretary may require, including at a minimum--
            ``(1) a needs assessment of the partners in the eligible 
        partnership with respect to the preparation, ongoing training, 
        professional development, and retention of general education 
        and special education teachers, teachers of English as a second 
        language, school leaders, and, as applicable, early childhood 
        educators and career and technical education teachers, 
        including--
                    ``(A) an assessment of the hiring needs of the 
                high-need schools served by the high-need local 
                educational agency in the eligible partnership; and
                    ``(B) a projection of vacancies for teachers in a 
                high-need subject or field, and the number of teachers 
                needed in each such high-need subject or field or 
                school leaders in high-need schools;
            ``(2) an assurance that the eligible partnership will 
        target grant funds provided under this section to recruit, 
        prepare, and support highly effective educators to serve in 
        high-need local educational agencies and high-need schools, 
        consistent with the needs assessment conducted under paragraph 
        (1);
            ``(3) an assurance that the eligible partnership will 
        include meaningful collaboration, as described in subsection 
        (c)(2)(A), between an educator preparation program and a high-
        need local educational agency, in order to ensure educator 
        preparation programs are preparing educators with the teaching 
        skills or leadership skills necessary to meet the needs of the 
        high-need local educational agency;
            ``(4) an assurance that the educator preparation program 
        will administer satisfaction surveys to employers and recent 
        program graduates on an annual basis, in order to ascertain 
        employer satisfaction with recent program graduates' 
        performance;
            ``(5) a coherent strategy for using grant funds provided 
        under this section with other Federal, State, and local funds 
        to--
                    ``(A) increase student achievement in high-need 
                schools by improving the quality of preparation for new 
                and prospective educators, and by enhancing 
                professional development activities for new educators; 
                and
                    ``(B) meet the needs of high-need local educational 
                agencies and high-need schools by establishing 
                meaningful partnerships with educator residency 
                programs;
            ``(6) a description of how the eligible partnership will 
        sustain the activities proposed in the application after the 
        grant period ends;
            ``(7) a description of how the eligible partnership will 
        prepare all educators to--
                    ``(A) understand and use scientifically valid 
                research, as well as data on their students' 
                educational progress to modify and improve the 
                implementation or supervision of classroom instruction;
                    ``(B) meet the needs of students with disabilities, 
                including training related to participation as a member 
                of individualized education program teams, as defined 
                in section 614(d)(1)(B) of the Individuals with 
                Disabilities Education Act to ensure individualized 
                education plans created promote student success; and
                    ``(C) meet the needs of English learners;
            ``(8) a description of--
                    ``(A) how the eligible partnership will coordinate 
                strategies and activities assisted under the grant with 
                other educator preparation programs or professional 
                development programs, including programs funded under 
                the Elementary and Secondary Education Act of 1965 and 
                the Individuals with Disabilities Education Act, and 
                through the National Science Foundation; and
                    ``(B) how the activities of the eligible 
                partnership will be consistent with State, local, and 
                other education reform activities that promote teacher 
                and school leader effectiveness and student academic 
                achievement;
            ``(9) a description of how the eligible partnership will 
        align the educator residency program carried out with grant 
        funds with the--
                    ``(A) State early learning standards for early 
                childhood education programs, as appropriate, and with 
                the relevant domains of early childhood development, 
                such as social and emotional development;
                    ``(B) challenging academic content standards and 
                challenging student academic achievement standards 
                under section 1111(b)(1) of the Elementary and 
                Secondary Education Act of 1965, established by the 
                State in which the partnership is located; and
                    ``(C) hiring objectives of the high-need local 
                educational agency in the partnership;
            ``(10) a description of how faculty at the partner 
        institution will work, during the term of the grant, with 
        highly effective educators in high-need schools served by the 
        high-need local educational agency in the eligible partnership 
        to--
                    ``(A) provide high-quality professional development 
                activities, including in-service professional 
                development, to strengthen the content knowledge and 
                teaching skills or leadership skills of elementary 
                school and secondary school teachers or school leaders;
                    ``(B) for teachers, train classroom teachers to 
                implement literacy programs that incorporate the 
                essential components of literacy instruction; and
                    ``(C) as appropriate, provide training for 
                educators to teach technical skills to industry 
                standards in a classroom setting;
            ``(11) a description of the partnership's evaluation plan 
        under section 204(a), including how the partnership will 
        collect, analyze, use, and report data annually on the 
        retention and performance of recent program graduates as well 
        as how the eligible partnership will conduct and publicly 
        report the evaluation required under section 204(a); and
            ``(12) a description of how the eligible partnership will 
        design and implement an induction program to support all new 
        educators who are prepared by the educator preparation program 
        in the partnership and who serve in the high-need local 
        educational agency in the partnership, and, to the extent 
        practicable, all new educators who serve in such high-need 
        local educational agency, and how such an induction program 
        will comply with the requirements under section 200(16) and be 
        integrated with other ongoing efforts to support new educators 
        by the high-need local educational agency.
    ``(c) Educator Residency Programs.--
            ``(1) In general.--An eligible partnership that receives a 
        grant under this section shall use the grant funds to design 
        and implement an effective educator residency program that is 
        grounded in scientifically valid research to prepare educators 
        for success in the high-need schools served by the high-need 
        local educational agency.
            ``(2) Content of program.--An educator residency program 
        implemented under paragraph (1) shall include the following:
                    ``(A) Meaningful collaboration.--Establish 
                meaningful collaboration between the partner 
                institution and the high-need local educational agency 
                to ensure the partner institution is preparing teachers 
                with the teaching skills or school leaders with the 
                leadership skills necessary to meet the specific needs 
                of the high-need local educational agency by requiring 
                the partner institution to--
                            ``(i) engage in regular consultation with 
                        the high-need local educational agency 
                        throughout the development and implementation 
                        of programs and activities carried out under 
                        this section and provide evidence that such 
                        programs and activities are aligned with the 
                        needs of the high-need schools served by such 
                        high-need local educational agency;
                            ``(ii) incorporate ongoing feedback and 
                        regular communication from the high-need local 
                        educational agency and the high-need schools 
                        served by such high-need local educational 
                        agency, in--
                                    ``(I) the development of 
                                recruitment and admissions goals and 
                                priorities;
                                    ``(II) the design of the educator 
                                residency program's curriculum, 
                                coursework content, clinical training, 
                                induction programs, and other 
                                professional development activities, 
                                including opportunities to collaborate 
                                with specialized instructional support 
                                personnel;
                                    ``(III) continuing efforts to 
                                modify and improve the activities and 
                                programs carried out by the partner 
                                institution; and
                                    ``(IV) meeting the needs of the 
                                high-need schools in which recent 
                                program graduates are employed and by 
                                monitoring the performance of such 
                                graduates; and
                            ``(iii) administer satisfaction surveys and 
                        utilize the feedback from such surveys to drive 
                        program improvement.
                    ``(B) Induction programs for new educators.--
                Implement an induction program, as described in section 
                200(16) for new educators or, in the case of an early 
                childhood education program, providing mentoring or 
                coaching for new early childhood educators. Such 
                induction program shall be integrated with other 
                ongoing efforts to support new educators by the high-
                need local educational agency.
                    ``(C) Educator recruitment.--Develop and implement 
                effective mechanisms (which may include alternative 
                routes to State certification of teachers or school 
                leaders) to ensure that the eligible partnership is 
                able to recruit well qualified individuals with a 
                record of academic, volunteer, or leadership 
                distinction to become effective educators, which shall 
                include--
                            ``(i) the development of recruitment and 
                        admissions goals and priorities aligned with 
                        the hiring objectives identified under 
                        subsection (a)(1); and
                            ``(ii) an emphasis on recruiting--
                                    ``(I) individuals from under 
                                represented populations;
                                    ``(II) individuals to--
                                            ``(aa) become teachers in 
                                        high-need subject or fields and 
                                        to teach in schools in rural 
                                        areas; or
                                            ``(bb) become school 
                                        leaders in schools in rural 
                                        areas or high-need local 
                                        educational agencies;
                                    ``(III) mid-career professionals 
                                from other occupations, former military 
                                personnel, and recent college 
                                graduates; and
                                    ``(IV) for school leaders, 
                                individuals with teaching experience 
                                and demonstrated leadership 
                                competencies.
                    ``(D) Support and training for participants in 
                early childhood education programs.--In the case of an 
                eligible partnership focusing on early childhood 
                educator preparation, implement initiatives that 
                increase compensation for early childhood educators who 
                attain associate or baccalaureate degrees in early 
                childhood education.
                    ``(E) Recent program graduate performance.--
                Increase capacity and collect and analyze data on the 
                performance of recent program graduates of educator 
                residency programs, including data on--
                            ``(i) results from statewide teacher or 
                        school leader evaluation systems;
                            ``(ii) recent program graduate retention 
                        rates in full-time positions;
                            ``(iii) satisfaction survey outcomes; and
                            ``(iv) to the extent practicable, surveys 
                        of parents on how well the teacher or school 
                        leader engages parents in student learning 
                        activities.
                    ``(F) Comprehensive literacy instruction.--
                Strengthen comprehensive literacy instruction, that--
                            ``(i) incorporates effective literacy 
                        instruction; and
                            ``(ii) is designed to support--
                                    ``(I) developmentally appropriate, 
                                contextually explicit, systematic 
                                instruction, and frequent practice, in 
                                reading across content areas; and
                                    ``(II) developmentally appropriate 
                                and contextually explicit instruction, 
                                and frequent practice, in writing 
                                across content areas.
            ``(3) Teacher residency programs.--In addition to the 
        requirements under paragraph (2), an eligible partnership 
        receiving a grant under this section to design and implement an 
        effective teacher residency program, shall include the 
        following requirements:
                    ``(A) Reforms.--Implementing reforms, including--
                            ``(i) curriculum changes that are aligned 
                        with the needs of the high-need local 
                        educational agency in the eligible partnership, 
                        in order to improve, evaluate, and assess how 
                        well all prospective and new teachers develop 
                        teaching skills;
                            ``(ii) using empirically-based practice and 
                        scientifically valid research, where 
                        applicable, about teaching and learning so that 
                        all prospective teachers and, as applicable, 
                        early childhood educators--
                                    ``(I) are prepared to be highly 
                                effective teachers and, as applicable, 
                                highly competent early childhood 
                                educators;
                                    ``(II) understand and can implement 
                                research-based teaching practices in 
                                classroom instruction;
                                    ``(III) possess strong teaching 
                                skills and an understanding of 
                                effective instructional strategies 
                                across all applicable content areas 
                                that enable all teachers to--
                                            ``(aa) meet the specific 
                                        learning needs of all students, 
                                        including students with 
                                        disabilities, English learners, 
                                        students who are gifted and 
                                        talented, students with low 
                                        literacy levels and, as 
                                        applicable, children in early 
                                        childhood education programs;
                                            ``(bb) differentiate 
                                        instruction for such students;
                                            ``(cc) have knowledge of 
                                        student learning styles;
                                            ``(dd) analyze the results 
                                        of student learning and other 
                                        data to improve instruction;
                                            ``(ee) effectively 
                                        participate as a member of the 
                                        individualized education 
                                        program team, as defined in 
                                        section 614(d)(1)(B) of the 
                                        Individuals with Disabilities 
                                        Education Act in order to 
                                        ensure individualized education 
                                        plans promote student success;
                                            ``(ff) if applicable, 
                                        successfully employ effective 
                                        strategies for comprehensive 
                                        literacy instruction; and
                                            ``(gg) employ techniques to 
                                        improve children's cognitive, 
                                        social, emotional, and physical 
                                        development;
                                    ``(IV) if applicable, receive 
                                training on effective teaching in rural 
                                or diverse communities and on teaching 
                                students with disabilities and English 
                                learners; and
                                    ``(V) can effectively teach 
                                students with disabilities; and
                            ``(iii) administering satisfaction surveys 
                        to employers of recent program graduates and to 
                        recent program graduates.
                    ``(B) Clinical training.--Implementing at least 1 
                academic year of preservice high-quality clinical 
                training in high-need schools that includes the 
                following criteria:
                            ``(i) Integration of pedagogy, robust 
                        classroom practice, and mentoring to promote 
                        effective teaching skills.
                            ``(ii) Engagement of teacher residents in 
                        rigorous coursework, which shall be aligned to 
                        the needs of the high-need local educational 
                        agency in the eligible partnership.
                            ``(iii) Establishment of clear criteria for 
                        the selection and assignment of mentor 
                        teachers.
                            ``(iv) Placement of teacher residents in 
                        cohorts that facilitate professional 
                        collaboration, both among teacher residents and 
                        between such teacher residents and mentors in 
                        the receiving school.
                            ``(v) Support for teacher residents, once 
                        the teacher residents are hired as teachers of 
                        record, through an induction program, high-
                        quality professional development, and regular 
                        opportunities to support the residents in their 
                        development of teaching skills during not less 
                        than the residents' first 2 years of teaching.
                    ``(C) Selection of individuals as teacher 
                residents.--
                            ``(i) Eligible individual.--In order to be 
                        eligible to be a teacher resident in a teacher 
                        residency program under this paragraph, an 
                        individual shall--
                                    ``(I) be--
                                            ``(aa) a graduate of a 4-
                                        year institution of higher 
                                        education; or
                                            ``(bb) in the third or 
                                        fourth year of undergraduate 
                                        baccalaureate education being 
                                        pursued by the teacher 
                                        candidate; and
                                    ``(II) submit an application to the 
                                teacher residency program.
                            ``(ii) Selection criteria.--An eligible 
                        partnership carrying out a teacher residency 
                        program under this subsection shall establish 
                        criteria for the selection of eligible 
                        individuals to participate in the teacher 
                        residency program, aligned to the hiring needs 
                        and objectives of the high-need local 
                        educational agency in the eligible partnership, 
                        and based on, at a minimum, the following 
                        applicant characteristics:
                                    ``(I) Strong content knowledge or 
                                record of accomplishment in the field 
                                or subject area to be taught.
                                    ``(II) Strong verbal and written 
                                communication skills.
                                    ``(III) Other attributes linked to 
                                effective teaching, which may be 
                                determined by interviews or performance 
                                assessments, as specified by the 
                                eligible partnership.
                                    ``(IV) Demonstrated commitment, 
                                which could be evidenced by past work 
                                experience, to serving in high-need 
                                local educational agencies.
                                    ``(V) Demonstrated leadership in 
                                past education or work experiences.
            ``(4) School leader residency programs.--In addition to the 
        requirements under paragraph (2), an eligible partnership 
        receiving a grant under this section to design and implement an 
        effective school leader residency program, shall include the 
        following requirements:
                    ``(A) Reforms.--Implementing reforms, including the 
                following:
                            ``(i) Preparing prospective school leaders 
                        for careers as principals, assistant 
                        principals, early childhood education program 
                        directors, or other school leaders (including 
                        individuals preparing to work in high-need 
                        local educational agencies located in rural 
                        areas who may perform multiple duties in 
                        addition to the role of a school leader).
                            ``(ii) Promoting strong leadership skills 
                        and, as applicable, techniques for school 
                        leaders to effectively--
                                    ``(I) develop a shared vision for 
                                high achievement and college- and 
                                career-readiness for all students;
                                    ``(II) support teachers in 
                                implementing rigorous curricula and 
                                assessments tied to State challenging 
                                academic content standards and 
                                challenging student academic 
                                achievement standards adopted pursuant 
                                to section 1111(b) of the Elementary 
                                and Secondary Education Act of 1965;
                                    ``(III) create and maintain a data-
                                driven, professional learning community 
                                within the school leader's school and 
                                understand the teaching skills needed 
                                to support successful classroom 
                                instruction and to use data to evaluate 
                                teacher instruction and drive teacher 
                                and student learning;
                                    ``(IV) recruit, hire, assign, and 
                                retain effective teachers and complete 
                                high-quality evaluations of 
                                instructional staff for continuous 
                                improvement;
                                    ``(V) provide a climate conducive 
                                to the professional development of 
                                teachers, with a focus on improving 
                                student academic achievement and the 
                                development of effective instructional 
                                leadership skills;
                                    ``(VI) manage resources and school 
                                time to improve student academic 
                                achievement, and to ensure the school 
                                environment is safe;
                                    ``(VII) engage and involve 
                                families, community members, the local 
                                educational agency, businesses, and 
                                other community leaders, to respond to 
                                the diverse interests and needs and 
                                leverage additional resources to 
                                improve student academic achievement;
                                    ``(VIII) understand how students 
                                learn and develop in order to increase 
                                academic achievement for all students, 
                                including students with disabilities 
                                and English learners; and
                                    ``(IX) understand the varied roles 
                                and responsibilities of general and 
                                special educators and teachers of 
                                English as a second language to support 
                                meaningful observation, feedback, and 
                                evaluations.
                    ``(B) Clinical training.--Implementing at least 1 
                academic year of high-quality clinical training in 
                high-need schools that includes the following criteria:
                            ``(i) Integration of coursework, robust 
                        school-based practice, and mentoring, to 
                        promote effective leadership skills.
                            ``(ii) Engagement of school leader 
                        residents in rigorous coursework, which shall 
                        be aligned to the needs of the high-need local 
                        educational agency in the eligible partnership.
                            ``(iii) Establishment of clear criteria for 
                        the selection and assignment of mentor school 
                        leaders.
                            ``(iv) Placement of school leader residents 
                        in cohorts that facilitate professional 
                        collaboration, both among school leader 
                        residents and between such school leader 
                        residents and mentors in the receiving school.
                            ``(v) Support for school leader residents 
                        once such school leader residents are hired as 
                        school leaders, through an induction program, 
                        high-quality professional development, and 
                        regular opportunities, to support residents in 
                        their development of leadership skills during 
                        not less than the residents' first 2 years of 
                        serving as a school leader.
                    ``(C) Selection of individuals as school leader 
                residents.--
                            ``(i) Eligible individual.--In order to be 
                        eligible to be a school leader resident in a 
                        school leader residency program under this 
                        paragraph, an individual shall--
                                    ``(I) be a graduate of a 4-year 
                                institution of higher education;
                                    ``(II) have prior prekindergarten 
                                through grade 12 teaching experience;
                                    ``(III) have experience as an 
                                effective leader, manager, and 
                                communicator; and
                                    ``(IV) submit an application to the 
                                residency program.
                            ``(ii) Selection criteria.--An eligible 
                        partnership carrying out a school leader 
                        residency program under this subsection shall 
                        establish criteria for the selection of 
                        eligible individuals to participate in the 
                        school leader residency program, aligned to the 
                        hiring needs and objectives of the high-need 
                        local educational agency in the eligible 
                        partnership, and based on, at a minimum, the 
                        following applicant characteristics:
                                    ``(I) Demonstrated leadership 
                                skills in an elementary school or 
                                secondary school setting.
                                    ``(II) Strong record of 
                                accomplishment in prior prekindergarten 
                                through grade 12 teaching experience.
                                    ``(III) Strong verbal and written 
                                communication skills.
                                    ``(IV) Other attributes linked to 
                                effective leadership.
                                    ``(V) Demonstrated commitment, 
                                which may be evidenced by past work 
                                experience, to serving in high-need 
                                local educational agencies.
            ``(5) Stipends or salaries; applications; agreements; 
        repayments.--
                    ``(A) Stipends or salaries.--A teacher residency 
                program or school leader residency program funded under 
                this subsection shall provide a 1-year living stipend 
                or salary to each teacher or school leader resident 
                during the residency program.
                    ``(B) Applications for stipends or salaries.--Each 
                teacher or school leader residency candidate desiring a 
                stipend or salary during the period of residency shall 
                submit an application to the eligible partnership at 
                such time, and containing such information and 
                assurances, as the eligible partnership may require.
                    ``(C) Agreements to serve.--Each application 
                submitted under subparagraph (B) shall contain or be 
                accompanied by an agreement that the applicant will--
                            ``(i) serve as a full-time teacher or 
                        school leader for a total of not less than 3 
                        academic years immediately after successfully 
                        completing the teacher residency program or 
                        school leader residency program;
                            ``(ii) fulfill the requirement under 
                        subclause (i)--
                                    ``(I) by serving as a teacher in a 
                                high-need subject or field in a high-
                                need school served by the high-need 
                                local educational agency in the 
                                eligible partnership or serving as a 
                                school leader in such a school; or
                                    ``(II) if there is no appropriate 
                                position available in a high-need 
                                school served by the high-need local 
                                educational agency in the eligible 
                                partnership, by serving as a teacher in 
                                a high-need subject or field in a high-
                                need school in another high-need local 
                                educational agency or serving as a 
                                school leader in such a school;
                            ``(iii) provide to the eligible partnership 
                        a certificate, from the chief administrative 
                        officer of the local educational agency in 
                        which the resident is employed, of the 
                        employment required in clauses (i) and (ii) at 
                        the beginning of, and upon completion of, each 
                        year or partial year of service;
                            ``(iv) for teachers, meet the requirements 
                        to be a highly qualified teacher, as defined in 
                        section 9101 of the Elementary and Secondary 
                        Education Act of 1965, or section 602 of the 
                        Individuals with Disabilities Education Act, 
                        when the applicant begins to fulfill the 
                        service obligation under this subparagraph; and
                            ``(v) comply with the requirements set by 
                        the eligible partnership under subparagraph (D) 
                        if the applicant is unable or unwilling to 
                        complete the service obligation required under 
                        this subparagraph.
                    ``(D) Repayments.--
                            ``(i) In general.--An eligible partnership 
                        receiving a grant under this section to design 
                        and implement an effective educator residency 
                        program shall require a recipient of a stipend 
                        or salary under subparagraph (A) who does not 
                        complete, or who notifies the eligible 
                        partnership that the recipient intends not to 
                        complete, the service obligation required under 
                        subparagraph (C) to repay such stipend or 
                        salary to the eligible partnership, together 
                        with interest, at a rate specified by the 
                        eligible partnership in the agreement, and in 
                        accordance with such other terms and conditions 
                        specified by the eligible partnership, as 
                        necessary.
                            ``(ii) Other terms and conditions.--Any 
                        other terms and conditions specified by the 
                        eligible partnership may include reasonable 
                        provisions for pro-rata repayment of the 
                        stipend or salary described in subparagraph (A) 
                        or for deferral of a teacher or school leader 
                        resident's service obligation required by 
                        subparagraph (C) on grounds of health, 
                        incapacitation, inability to secure employment 
                        in a school served by the eligible partnership, 
                        being called to active duty in the Armed Forces 
                        of the United States, or other extraordinary 
                        circumstances.
                            ``(iii) Use of repayments.--An eligible 
                        partnership shall use any repayment received 
                        under this subparagraph to carry out additional 
                        activities that are consistent with the 
                        purposes of this subsection.
    ``(d) Consultation.--
            ``(1) In general.--In addition to the requirements 
        identified in subsection (b)(2)(A), members of an eligible 
        partnership that receives a grant under this section shall 
        engage in regular consultation throughout the development and 
        implementation of programs and activities carried out under 
        this section.
            ``(2) Regular communication.--To ensure timely and 
        meaningful consultation as described in paragraph (1), regular 
        communication shall occur among all members of the eligible 
        partnership, including the high-need local educational agency. 
        Such communication shall continue throughout the implementation 
        of the grant and the assessment of programs and activities 
        under this section.
            ``(3) Written consent.--The Secretary may approve changes 
        in grant activities of a grant under this section only if the 
        eligible partnership submits to the Secretary a written consent 
        to such changes signed by all members of the eligible 
        partnership.
    ``(e) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of eligible partnerships in other States or on a 
regional basis through Governors, State boards of education, State 
educational agencies, State agencies responsible for early childhood 
education, local educational agencies, or State agencies for higher 
education.
    ``(f) Supplement, Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities under this section.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 5 succeeding fiscal years.

``SEC. 203. ADMINISTRATIVE PROVISIONS OF EDUCATOR RESIDENCY GRANTS.

    ``(a) Duration; Number of Awards; Payments.--
            ``(1) Duration.--
                    ``(A) In general.--A grant awarded under this part 
                shall be not more than 5 years in duration.
                    ``(B) Requirements for additional funding.--Before 
                receiving funding for the third or any subsequent year 
                of a grant under this part, the eligible partnership 
                receiving the grant shall demonstrate to the Secretary 
                that the eligible partnership is--
                            ``(i) making progress in implementing the 
                        requirements under section 202(c) at a rate 
                        that the Secretary determines will result in 
                        full implementation of the program during the 
                        remainder of the grant period; and
                            ``(ii) making progress, as measured by the 
                        performance objectives established by the 
                        eligible partnership under section 204(a), at a 
                        rate that the Secretary determines will result 
                        in reaching the targets and achieving the 
                        objectives of the grant, during the remainder 
                        of the grant period.
            ``(2) Number of awards.--An eligible partnership may not 
        receive more than 1 grant during a 5-year period. Nothing in 
        this part shall be construed to prohibit an individual member, 
        that can demonstrate need, of an eligible partnership that 
        receives a grant under this part from entering into another 
        eligible partnership consisting of new members and receiving a 
        grant with such other eligible partnership before the 5-year 
        period applicable to the eligible partnership with which the 
        individual member has first partnered has expired.
    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the applications 
        submitted under this part to a peer review panel for 
        evaluation. With respect to each application, the peer review 
        panel shall initially recommend the application for funding or 
        for disapproval.
            ``(2) Priority.--The Secretary, in funding applications 
        under this part, shall give priority--
                    ``(A) to eligible partnerships that include a high-
                need local educational agency that serves a student 
                population that consists of 40 percent or more students 
                from low-income families;
                    ``(B) to eligible partnerships that include an 
                institution of higher education whose educator 
                preparation program has a rigorous selection process to 
                ensure the highest quality of students entering such 
                program;
                    ``(C) to applications from broad-based eligible 
                partnerships that involve businesses and nonprofit 
                community organizations; or
                    ``(D) to eligible partnerships so that the awards 
                promote an equitable geographic distribution of grants 
                among rural and urban areas.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which applications 
        shall receive funding and the amounts of the grants under this 
        part. In determining grant amounts, the Secretary shall take 
        into account the total amount of funds available for all grants 
        under this part and the types of activities proposed to be 
        carried out by the eligible partnership.
    ``(c) Matching Requirements.--
            ``(1) In general.--Each eligible partnership receiving a 
        grant under this part shall provide, from non-Federal sources, 
        an amount equal to 100 percent of the amount of the grant, 
        which may be provided in cash or in-kind, to carry out the 
        activities supported by the grant.
            ``(2) Waiver.--The Secretary may waive all or part of the 
        matching requirement described in paragraph (1) for any fiscal 
        year for an eligible partnership if the Secretary determines 
        that applying the matching requirement to the eligible 
        partnership would result in serious hardship or an inability to 
        carry out the authorized activities described in this part.
    ``(d) Limitation on Administrative Expenses.--An eligible 
partnership that receives a grant under this part may use not more than 
4 percent of the funds provided to administer the grant.

``SEC. 204. PERFORMANCE MEASURES AND EVALUATION OF EDUCATOR RESIDENCY 
              GRANTS.

    ``(a) Eligible Partnership Evaluation.--Each eligible partnership 
submitting an application for a grant under this part shall establish, 
and include in such application, a plan for evaluating the grant 
project using scientifically valid research that includes strong and 
measurable performance objectives. The plan shall include, at a 
minimum, objectives and measures for determining the eligible 
partnership's success in increasing--
            ``(1) each teacher candidate or school leader candidate's 
        performance during their clinical training under paragraphs 
        (3)(B) and (4)(B) of section 202(c);
            ``(2) educator retention in high-need schools--
                    ``(A) 3 years after initial placement as a teacher 
                or school leader; and
                    ``(B) 5 years after initial placement as a teacher 
                or school leader;
            ``(3) the pass rates and scaled scores for first time test 
        takers on the State certification or licensing examination;
            ``(4) educator effectiveness, as measured by--
                    ``(A) performance on teacher or school leader 
                evaluations, including impact on student growth; and
                    ``(B) satisfaction survey outcomes; and
            ``(5) the percentage of--
                    ``(A) recent program graduates hired by the high-
                need local educational agency who are rated effective 
                under a State or district evaluation system 2 years 
                after program completion;
                    ``(B) recent program graduates hired by the high-
                need local educational agency who are rated effective 
                under a State or district evaluation system 2 years 
                after program completion and are members of 
                underrepresented groups;
                    ``(C) recent program graduates hired by the high-
                need local educational agency who are rated effective 
                under a State or district evaluation system 2 years 
                after program completion and who teach in high-need 
                subject areas or fields;
                    ``(D) recent program graduates hired by the high-
                need local educational agency who are rated effective 
                under a State or district evaluation system 2 years 
                after program completion and who serve in high-need 
                schools or schools in rural areas, disaggregated by the 
                elementary school and secondary school levels; and
                    ``(E) early childhood education program classes in 
                the geographic area served by the eligible partnership 
                taught by early childhood educators who are highly 
                competent, as applicable.
    ``(b) Annual Report.--Each eligible partnership that receives a 
grant under this part shall submit to the Secretary and make publicly 
available, at such time and in such manner as the Secretary may 
require, an annual report including at a minimum--
            ``(1) data on the eligible partnership's progress on the 
        measures described in subsection (a); and
            ``(2) a description of the challenges the eligible 
        partnership has faced in implementing its grant and how the 
        eligible partnership has addressed or plans to address such 
        challenges.
    ``(c) Information.--An eligible partnership receiving a grant under 
this part shall ensure that candidates for admission to educator 
preparation programs, teachers, school leaders, school superintendents, 
faculty, and leadership at institutions of higher education located in 
the geographic areas served by the eligible partnership are provided 
information, including through electronic means, about the activities 
carried out with funds under this part.
    ``(d) Revised Application.--If the Secretary determines that an 
eligible partnership receiving a grant under this part is not making 
substantial progress in meeting the purposes, goals, objectives, and 
measures of the grant, as appropriate, by the end of the third year of 
a grant under this part, then the Secretary--
            ``(1) shall cancel the grant; and
            ``(2) may use any funds returned or available because of 
        such cancellation under paragraph (1) to--
                    ``(A) increase other grant awards under this part; 
                or
                    ``(B) award new grants to other eligible 
                partnerships under this part.
    ``(e) Technical Assistance, Evaluation, and Dissemination.--The 
Secretary shall reserve not more than 2 percent of the funds 
appropriated under section 202(g) for a fiscal year--
            ``(1) to provide, directly or through grants, contracts, or 
        cooperative agreements, technical assistance by qualified 
        experts on using practices grounded in scientifically valid 
        research to improve the outcomes of projects funded under this 
        part;
            ``(2) acting through the Director of the Institute for 
        Education Sciences, to--
                    ``(A) develop performance measures, including the 
                measures described in subsection (a) and evaluate the 
                activities funded under section 202 by these 
                performance measures by applying the same measures to 
                each project funded under section 202;
                    ``(B) report the findings of the evaluation to the 
                authorizing committees and make publicly available on 
                the website of the Department; and
                    ``(C) identify best practices and disseminate 
                research on best practices that scientifically valid 
                research indicates are the most successful in improving 
                the quality of educator preparation programs, including 
                through regional educational laboratories and 
                comprehensive centers (as authorized under the 
                Education Sciences Reform Act of 2002).
    ``(f) Evaluation To Be Made Publicly Available.--Each eligible 
partnership receiving a grant under this part shall complete and make 
publicly available, not later than 90 days after the grant period for 
such eligible partnership ends, an evaluation based on the evaluation 
plan described under subsection (a).
    ``(g) Development of Performance Measures.--The Secretary shall 
develop performance measures described in subsection (e) prior to 
awarding grants under this part. The Secretary shall ensure that such 
measures are made available to potential applicants prior to seeking 
applications for grants under this part.

           ``PART B--STATE INNOVATION IN EDUCATOR PREPARATION

``SEC. 206. EDUCATOR PREPARATION PROGRAM REFORM GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) Educator preparation program accountability and 
        improvement system.--The term `Educator Preparation Program 
        Accountability and Improvement System' means a system that 
        assesses all educator preparation programs within a State, 
        establishes performance levels for educator preparation 
        programs, and informs the interventions for low-performing 
        educator preparation programs. The minimum requirements for 
        such a system shall include--
                    ``(A) defining at least 4 performance levels that 
                differentiate the performance of educator preparation 
                programs based on data required in subparagraph (D);
                    ``(B) administering satisfaction surveys to 
                employers of recent program graduates;
                    ``(C) administering satisfaction surveys to recent 
                program graduates;
                    ``(D) assessing all such educator preparation 
                programs on multiple measures that, at a minimum, shall 
                include--
                            ``(i) for teacher preparation programs--
                                    ``(I) a statewide measure of 
                                teacher impact on student learning for 
                                recent program graduates who are 
                                employed as full-time teachers as 
                                demonstrated through either--
                                            ``(aa) the percentage of 
                                        recent program graduates in 
                                        each evaluation rating category 
                                        for States that have statewide 
                                        teacher evaluation systems if 
                                        such evaluation systems contain 
                                        the impact on student 
                                        achievement, multiple measures, 
                                        and more than 2 rating 
                                        categories; or
                                            ``(bb) for States that do 
                                        not have a statewide teacher 
                                        evaluation system meeting the 
                                        requirements in item (aa), the 
                                        percentage of recent program 
                                        graduates who demonstrate 
                                        evidence of improved student 
                                        growth that is limited to 
                                        evidence-based or externally-
                                        validated measures;
                                    ``(II) the number and percentage of 
                                recent program graduates employed as 
                                full time teachers who are identified 
                                as well-prepared by their employers in 
                                the surveys described in subparagraph 
                                (B);
                                    ``(III) the number and percentage 
                                of recent graduates employed as full-
                                time teachers who identify themselves 
                                as being well-prepared in surveys 
                                described in subparagraph (C);
                                    ``(IV) the number and percentage of 
                                teachers who graduated from teacher 
                                preparation programs and who are still 
                                teaching in full-time positions 3 years 
                                and 5 years after initial placement as 
                                a teacher; and
                                    ``(V) the number and percentage of 
                                teachers who graduated from the 
                                educator preparation program in the 
                                most recent academic year who are 
                                teaching in full-time positions;
                            ``(ii) for school leader preparation 
                        programs--
                                    ``(I) a statewide measure of school 
                                leader impact on student learning for 
                                recent program graduates who are 
                                employed as full-time school leaders as 
                                demonstrated through either--
                                            ``(aa) the percentage of 
                                        recent program graduates in 
                                        each evaluation rating category 
                                        for States that have statewide 
                                        school leader evaluation 
                                        systems that include the impact 
                                        on student achievement, 
                                        multiple measures, and more 
                                        than 2 rating categories; or
                                            ``(bb) for States that do 
                                        not have school leader 
                                        evaluation systems that meet 
                                        the requirements of item (aa), 
                                        the percentage of recent 
                                        program graduates who 
                                        demonstrate evidence of 
                                        improved student achievement 
                                        and growth that is limited to 
                                        evidence-based or externally-
                                        validated measures;
                                    ``(II) evidence of training school 
                                leaders to provide strong instructional 
                                leadership and support to teachers and 
                                other staff;
                                    ``(III) the number and percentage 
                                of recent program graduates employed as 
                                full time school leaders who are 
                                identified as well-prepared in the 
                                surveys described in subparagraph (B);
                                    ``(IV) the number and percentage of 
                                recent program graduates employed as 
                                school leaders who, based on surveys 
                                described in subparagraph (C), 
                                described themselves as prepared to be 
                                effective school leaders;
                                    ``(V) the number and percentage of 
                                school leaders who graduated from the 
                                educator preparation program in the 
                                most recent academic year who are 
                                employed as school leaders; and
                                    ``(VI) the number and percentage of 
                                school leaders who graduated from 
                                programs and are still serving in a 
                                school leadership role 3 years and 5 
                                years after initial placement as a 
                                school leader;
                            ``(iii) for all educator preparation 
                        programs--
                                    ``(I) evidence of meaningful 
                                collaboration with high-need local 
                                educational agencies to ensure the 
                                educator preparation programs are 
                                preparing educators to meet the 
                                workforce needs of high-need local 
                                educational agencies and to ensure that 
                                high-need local educational agencies 
                                have a role in the design of the 
                                teacher or school leader candidate 
                                education offered at educator 
                                preparation programs; and
                                    ``(II) the number and percentage of 
                                graduates who are working as full-time 
                                teachers or school leaders in high-need 
                                schools after 3 years;
                    ``(E) using the same metrics and weights to 
                determine the performance level of all educator 
                preparation programs in the State;
                    ``(F) public reporting of performance levels on a 
                program by program basis based on the measures 
                described in subparagraph (D);
                    ``(G) distribution of educator preparation program 
                performance information to all local educational 
                agencies and school boards in the State;
                    ``(H) interventions for programs identified as low 
                performing pursuant to subparagraph (A), including--
                            ``(i) for programs identified as low 
                        performing for 1 year, requiring such programs 
                        to conduct a needs assessment and develop and 
                        implement an improvement plan based on that 
                        needs assessment;
                            ``(ii) for programs identified as low 
                        performing for 3 consecutive years, requiring 
                        such programs to lose eligibility for TEACH 
                        grants under subpart 9 of part A of title IV 
                        and continue to implement an improvement plan; 
                        and
                            ``(iii) for programs identified as low 
                        performing for 4 consecutive years, requiring 
                        the State to terminate the ability of such 
                        program to operate; and
                    ``(I) for programs identified in the lowest 
                performing level for 1 or more years under subparagraph 
                (A), an automatic designation as a low performing 
                program under section 212.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State; or
                    ``(B) a consortium of States.
    ``(b) Program Authorized.--
            ``(1) Educator preparation program reform grants.--The 
        Secretary shall award grants to eligible entities to enable 
        such entities to reform and improve educator preparation 
        programs.
            ``(2) Duration.--
                    ``(A) In general.--A grant awarded under this 
                section shall be not more than 5 years in duration.
                    ``(B) Number of grants.--A State shall not receive, 
                directly or as part of a consortium, more than 1 grant 
                under this section for any grant period.
                    ``(C) Requirements for additional funding.--Before 
                receiving funding for the third or any subsequent year 
                of the grant, the eligible entity receiving the grant 
                shall demonstrate to the Secretary that the eligible 
                entity is--
                            ``(i) making progress in implementing the 
                        plan under subsection (c)(1)(A) at a rate that 
                        the Secretary determines will result in full 
                        implementation of the plan during the remainder 
                        of the grant period; and
                            ``(ii) making progress, as measured by the 
                        performance measures established by the 
                        Secretary under subsection (h), at a rate that 
                        the Secretary determines will result in 
                        reaching the measures and achieving the 
                        objectives of the grant, during the remainder 
                        of the grant period.
                    ``(D) Substantial progress.--
                            ``(i) In general.--If the Secretary 
                        determines that an eligible entity receiving a 
                        grant under this section is not making 
                        substantial progress in meeting the objectives 
                        of the grant, as appropriate, by the end of the 
                        third year of the grant under this section, 
                        then the Secretary may, after notice and an 
                        opportunity for a hearing in accordance with 
                        chapter 5 of title 5, United States Code--
                                    ``(I) withhold funds provided under 
                                the grant under this section for 
                                failure to comply substantially with 
                                the requirements of this section; or
                                    ``(II) take actions to recover 
                                funds provided under the grant if the 
                                entity uses grant funds for an 
                                unallowable expense, or otherwise fails 
                                to discharge its responsibility to 
                                properly account for grant funds.
                            ``(ii) Use of recovered or unused funds.--
                        Any funds recovered or withheld under clause 
                        (i) shall--
                                    ``(I) be credited to the 
                                appropriations account from which 
                                amounts are available to make grants 
                                under this section; and
                                    ``(II) remain available until 
                                expended for any purpose of such 
                                account authorized by law that relates 
                                to the program under this section.
                    ``(E) Reservation of funds.--From amounts made 
                available to carry out this section for a fiscal year, 
                the Secretary may reserve not more than 5 percent to 
                carry out activities related to technical assistance, 
                outreach and dissemination, and evaluation.
    ``(c) Application and Selection Criteria.--
            ``(1) Application.--An eligible entity that desires to 
        receive a grant under this section shall submit to the 
        Secretary an application at such time, in such manner, and 
        accompanied by such information as the Secretary may require. 
        At a minimum, each such application shall include--
                    ``(A) a plan to implement the required activities 
                in subsection (e)(1) statewide, including a description 
                of its plan to support educator preparation programs to 
                make the necessary reforms and improvements required 
                under this section;
                    ``(B) an assurance that the eligible entity will 
                use the Educator Preparation Program Accountability and 
                Improvement System to reward high-performing educator 
                preparation programs and identify and improve low-
                performing educator preparation programs and the 
                specific criteria the eligible entity will use to 
                identify low-performing and high-performing educator 
                preparation programs;
                    ``(C) evidence of the steps the State has taken and 
                will take to eliminate statutory, regulatory, 
                procedural, or other barriers to facilitate the full 
                implementation of the State plans under subparagraph 
                (A);
                    ``(D) a comprehensive and coherent plan for using 
                funds under this section, and other Federal, State, and 
                local funds to develop statewide reforms and 
                improvements to educator preparation programs;
                    ``(E) evidence of collaboration between the 
                eligible entity, State standards boards for teacher or 
                school leader certification, local educational 
                agencies, educator preparation programs, teachers, 
                school leaders, and other key stakeholders within the 
                State in developing the plan under subparagraph (A), 
                including the design of the Education Preparation 
                Program Accountability and Improvement System;
                    ``(F) a commitment to participate in the reporting 
                provisions under subsection (f) and the evaluation of 
                the activities carried out under this section, as 
                described in subsection (h); and
                    ``(G) a description of the eligible entity's plan 
                to regularly review the success of activities 
                undertaken as part of the grant and continuously 
                improve such activities.
            ``(2) Selection criteria.--In awarding grants under this 
        section, the Secretary shall consider--
                    ``(A) the extent to which the eligible entity has 
                the capacity to implement the activities described in 
                subsection (e);
                    ``(B) the extent to which the eligible entity has a 
                demonstrated record of effectiveness or an evidence-
                based plan for reforming educator preparation programs; 
                and
                    ``(C) the likelihood of the eligible entity 
                sustaining the reforms and improvements required under 
                the grant, once the grant has ended and the eligible 
                entity's plan for sustaining the reforms and 
                improvements after the grant has ended.
    ``(d) Awarding Grants.--In awarding grants under this section, the 
Secretary shall give priority to an eligible entity with--
            ``(1) data systems in place to link the results of teacher 
        or school leader evaluation systems for recent program 
        graduates back to the educator preparation programs from which 
        they graduated;
            ``(2) statewide teacher or school leader evaluation systems 
        based on multiple measures, that include student growth; and
            ``(3) strong partnerships between educator preparation 
        programs and high-need local educational agencies.
    ``(e) Activities.--
            ``(1) Required uses of funds for all grantees.--Each 
        eligible entity that receives a grant under this section shall 
        use the grant funds to do the following:
                    ``(A) Incorporate into the State's educator 
                preparation program approval process a requirement that 
                educator preparation entities--
                            ``(i) successfully recruit top talent and 
                        hold a high bar for admission to educator 
                        preparation programs;
                            ``(ii) present evidence demonstrating 
                        selective admission;
                            ``(iii) provide participants with clinical 
                        training, including prioritizing clinical 
                        training in high-need schools;
                            ``(iv) for entities that prepare teachers, 
                        prepare all teachers to effectively teach 
                        students with disabilities and English 
                        learners, and for entities that prepare school 
                        leaders, prepare all school leaders to lead 
                        schools that effectively address the academic 
                        needs of students with disabilities and English 
                        learners;
                            ``(v) for entities that prepare teachers, 
                        ensure that all teacher candidates demonstrate 
                        subject matter mastery and mastery of effective 
                        classroom management, and for entities that 
                        prepare school leaders, ensure that all school 
                        leader candidates demonstrate mastery of school 
                        management techniques, including strategies for 
                        creating a positive learning environment that 
                        conveys high expectations for all students and 
                        equitably implementing school discipline 
                        policies;
                            ``(vi) ensure that all teachers and school 
                        leaders develop teaching skills and school 
                        leadership skills, respectively; and
                            ``(vii) are aligned with research-based 
                        professional teaching or leadership standards.
                    ``(B) Design and implement an Educator Preparation 
                Program Accountability and Improvement System and 
                require all educator preparation programs to be 
                included in such system.
                    ``(C) Require all educator preparation programs to 
                regularly communicate with the in-State local 
                educational agencies they predominantly serve to 
                ascertain the agencies' educator workforce needs and 
                whether the educator preparation programs are meeting 
                the workforce needs and whether recent program 
                graduates have the skills needed to be effective.
                    ``(D) Require all educator preparation programs to 
                utilize satisfaction surveys of recent program 
                graduates that are conducted by the States to improve 
                educator preparation programs.
                    ``(E) Require all educator preparation programs to 
                utilize satisfaction surveys of employers that are 
                conducted by the States to ascertain employer 
                satisfaction with recent program graduates of educator 
                preparation programs.
                    ``(F) Ensure statewide data systems, including the 
                Educator Preparation Program Accountability and 
                Improvement System, do not publicly report personally 
                identifiable information of educators or elementary 
                school or secondary school students, comply with 
                section 444 of the General Education Provisions Act 
                ((20 U.S.C. 1232g), commonly known as the `Family 
                Educational Rights and Privacy Act of 1974'), and share 
                with educator preparation programs the aggregate data 
                on--
                            ``(i) the aggregate impact their recent 
                        program graduates have on student achievement 
                        as demonstrated through teacher or school 
                        leader evaluation results of their program 
                        graduates;
                            ``(ii) retention of their program 
                        graduates, including at--
                                    ``(I) 3 years after initial 
                                placement as a teacher or school 
                                leader; and
                                    ``(II) 5 years after initial 
                                placement as a teacher or school 
                                leader; and
                            ``(iii) the number and percentage of recent 
                        program graduates hired into full-time 
                        positions as teachers or school leaders within 
                        1 year of certification or licensure.
                    ``(G) Report publicly on the aggregate performance 
                of each educator preparation program operating in the 
                State, including aggregate data on the measures 
                described in subparagraph (F), and ensure that key 
                stakeholders such as applicants to teacher preparation 
                programs or school leader preparation programs, school 
                administrators, and school board members, receive these 
                performance results.
                    ``(H) Redesign certification and licensing exams to 
                ensure that such exams are aligned with the State's 
                challenging academic content standards and challenging 
                student academic achievement standards required under 
                section 1111(b) of the Elementary and Secondary 
                Education Act of 1965, educator performance 
                assessments, and educator evaluation systems.
                    ``(I) Utilize data collected, as described in 
                subsection (a)(1), in program approval, program re-
                approval, program improvement, and program closures 
                processes.
                    ``(J) Require all educator preparation programs 
                within the State to offer a high-quality clinical 
                training to educator candidates.
            ``(2) Required uses of funds for consortia grantees.--Each 
        eligible entity that receives a grant under this section and is 
        a consortium of States shall use the grant funds to carry out 
        the uses of funds under paragraph (1) and each of the 
        following:
                    ``(A) Develop consistent program quality and 
                accountability indicators across State lines.
                    ``(B) Develop consistent measures for identifying 
                educator preparation programs as low performing.
                    ``(C) Develop systems for the sharing of the data 
                required under the Educator Preparation Program 
                Accountability and Improvement System across State 
                lines that complies with all relevant Federal and State 
                privacy laws, including section 444 of the General 
                Education Provisions Act ((20 U.S.C. 1232g), commonly 
                known as the `Family Educational Rights and Privacy Act 
                of 1974').
            ``(3) Permissive uses of funds.--Each eligible entity that 
        receives a grant under this section may use the grant funds 
        (after meeting all the required uses of funds under paragraph 
        (1) and, as applicable, paragraph (2)) to do the following:
                    ``(A) Incentivize educator preparation programs to 
                pursue programmatic accreditation.
                    ``(B) Improve diversity of teacher or school leader 
                candidates in educator preparation programs.
                    ``(C) Develop partnerships between high-need local 
                educational agencies and educator preparation entities 
                to provide high-quality induction programs and 
                mentoring programs for new educators.
                    ``(D) Provide subgrants for educator development. 
                In this subparagraph, the term `educator' means 
                specialized instructional support personnel, or other 
                staff member who provides or directly supports 
                instruction, such as a school librarian, counselor, or 
                paraprofessional.
                    ``(E) Include, in the subgrants provided under 
                subparagraph (D), the following activities:
                            ``(i) Implementing curriculum changes that 
                        improve, evaluate, and assess how well 
                        educators develop instructional skills.
                            ``(ii) Preparing educators to use 
                        empirically based practice and scientifically 
                        valid research, where applicable.
                            ``(iii) Providing pre-service clinical 
                        training.
                            ``(iv) Creating induction programs for new 
                        educators.
                            ``(v) Aligning recruitment and admissions 
                        goals and priorities with the hiring objectives 
                        with local educational agencies in the State, 
                        including high-need local educational agencies.
    ``(f) Reporting.--An eligible entity that receives a grant under 
this section shall submit to the Secretary and make publicly available, 
at such time and in such manner as the Secretary may require, an annual 
report, including, at a minimum--
            ``(1) data on the eligible entity's progress on the 
        performance measures established by the Secretary under 
        subsection (h);
            ``(2) a description of the challenges the eligible entity 
        has faced in implementing its plan under this section, and how 
        the eligible entity has addressed or plans to address such 
        challenges; and
            ``(3) data on educator preparation programs in the State 
        recruiting and selecting candidates who are members of groups 
        underrepresented in the teaching profession.
    ``(g) Supplement, Not Supplant.--Grant funds provided under this 
section shall be used to supplement, and not supplant, any other 
Federal, State, or local funds otherwise available to carry out the 
activities described in this section.
    ``(h) Research, Evaluation, and Dissemination.--The Secretary, 
acting through the Director of the Institute of Education Sciences, 
shall--
            ``(1) develop performance measures to evaluate the 
        effectiveness of the activities carried out under this grant 
        program; and
            ``(2) identify best practices and disseminate research on 
        best practices.
    ``(i) Development of Performance Measures.--The Secretary shall 
establish performance measures described under subsection (h) prior to 
awarding grants under this section. The Secretary shall ensure that 
such measure are made available to potential applicants prior to 
seeking applications for grants under this section.
    ``(j) Teacher or School Leader Privacy.--No State or local 
educational agency shall be required to publicly report information in 
compliance with this section in a case in which the results would 
reveal personally identifiable information about an individual teacher 
or school leader.
    ``(k) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school or school district employees under Federal, State or local laws 
(including applicable regulators or court orders) or under the terms of 
collective bargaining agreements, memoranda of understanding, or other 
agreements between such employees and their employers.
    ``(l) Report to Congress.--Not later than 5 years after the date of 
enactment of the Higher Education Affordability Act, the Secretary 
shall submit a report to the Committee on Health, Education, Labor, and 
Pensions of the Senate, the Committee on Appropriations of the Senate, 
the Committee on Education and the Workforce of the House of 
Representatives, and the Committee on Appropriations of the House of 
Representatives on lessons learned through programs funded with grants 
awarded under this section and shall make such report publicly 
available.
    ``(m) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 5 succeeding fiscal years.

    ``PART C--EDUCATOR PREPARATION PROGRAM REPORTING AND IMPROVEMENT

``SEC. 210. INFORMATION ON EDUCATOR PREPARATION PROGRAMS.

    ``(a) Institutional and Program Report Cards on the Quality of 
Educator Preparation.--
            ``(1) Report card.--Each institution of higher education 
        that conducts a traditional educator preparation program or 
        alternative routes to State certification or licensure program 
        and that enrolls students receiving Federal assistance under 
        this Act and each educator preparation entity that is not based 
        at an institution of higher education and that receives Federal 
        assistance shall report annually to the State and the general 
        public, in a uniform and comprehensible manner that conforms 
        with the definitions and methods established by the Secretary, 
        the following, in the aggregate for each institution and entity 
        and disaggregated by program within each institution and 
        entity:
                    ``(A) Goals and assurances.--For the most recent 
                year for which the information is available for the 
                institution or entity--
                            ``(i) whether the goals set under section 
                        211 have been met; and
                            ``(ii) if the goals under section 211 have 
                        not been met, a description of the steps the 
                        program is taking to improve its performance in 
                        meeting such goals.
                    ``(B) Pass rates and scaled scores.--For the most 
                recent year for which the information is available for 
                those program participants who took the assessments 
                used for teacher or school leader certification or 
                licensure by the State in which the program is located 
                and are enrolled in the traditional educator 
                preparation program or alternative routes to State 
                certification or licensure program, for each of such 
                assessments--
                            ``(i) the percentage of all program 
                        participants who have taken the assessment who 
                        have passed such assessment compared to the 
                        average passage rate percentage in the State on 
                        such assessment;
                            ``(ii) the percentage of all program 
                        participants who have taken the assessment who 
                        passed such assessment on the first time taking 
                        the assessment compared to the first-time 
                        average passage rate in the State on such 
                        assessment;
                            ``(iii) the percentage of program 
                        participants who have taken such assessment and 
                        enrolled in the traditional teacher or school 
                        leader preparation program or alternative 
                        routes to State certification or licensure 
                        program, as applicable;
                            ``(iv) the average scaled score for all 
                        program participants who have taken such 
                        assessment, as compared to the passing score 
                        required by the State on such assessment;
                            ``(v) the average scaled score for all 
                        program participants who have taken such 
                        assessment for the first time compared to the 
                        average scaled score for programs in the State; 
                        and
                            ``(vi) if applicable, the percentage of all 
                        program participants who have taken and passed 
                        a teacher performance assessment compared to 
                        the average passage rate for all programs in 
                        the State on such assessment.
                    ``(C) Candidate information.--For the most recent 
                academic year for which data is available--
                            ``(i) the median cumulative grade point 
                        average of admitted program participants 
                        compared to the institution or entity as a 
                        whole;
                            ``(ii) the median score on standardized 
                        entrance examinations of admitted program 
                        participants compared to the institution or 
                        entity as a whole, as applicable;
                            ``(iii) in the aggregate and disaggregated 
                        by race, ethnicity, gender, and Pell Grant 
                        recipient status, the number of program 
                        participants who--
                                    ``(I) enrolled in the program; and
                                    ``(II) completed or graduated from 
                                the program in 100 percent of normal 
                                time and 150 percent of normal time; 
                                and
                            ``(iv) the total number of program 
                        participants who have been certified or 
                        licensed as teachers or school leaders, 
                        disaggregated by race, ethnicity, gender, Pell 
                        Grant recipient status, subject and area of 
                        certification or licensure.
                    ``(D) Program information.--For the most recent 
                academic year for which data is available--
                            ``(i) the percentage of enrolled program 
                        participants who participated in a clinical 
                        training;
                            ``(ii) the number of hours of clinical 
                        training required for program participants; and
                            ``(iii) the percentage of program 
                        participants graduating from or completing the 
                        program who obtained at minimum 50 percent of 
                        clinical training in high-need schools.
                    ``(E) Accreditation and approval.--Whether the 
                program is accredited by a specialized accrediting 
                agency recognized by the Secretary for accreditation of 
                professional educator preparation programs and whether 
                the program is approved by the State.
                    ``(F) Designation as low-performing.--Whether the 
                program has been designated as low performing by the 
                State under section 212.
                    ``(G) Educator training.--A list of the activities 
                that prepare--
                            ``(i) general education and special 
                        education teachers and other educators to 
                        effectively teach students with disabilities 
                        effectively, including training related to 
                        participation as a member of individualized 
                        education program teams, as defined in section 
                        614(d)(1)(B) of the Individuals with 
                        Disabilities Education Act, and to effectively 
                        teach students who are English learners; and
                            ``(ii) school leaders to effectively 
                        develop a shared vision for high achievement 
                        and college and career readiness for all 
                        students, including creating structures and 
                        staffing to meet the needs of all students, in 
                        particular students with disabilities and 
                        English learners.
            ``(2) Fines.--The Secretary may impose a fine not to exceed 
        $27,500 on an institution of higher education or educator 
        preparation entity that is not based at an institution of 
        higher education for failure to provide the information 
        described in this subsection in a timely or accurate manner.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to prevent a State from collecting and reporting 
        additional data indicators regarding teacher preparation 
        programs.
            ``(4) Special rule.--In the case of an institution of 
        higher education, or educator preparation entity that is not 
        based at an institution of higher education, that conducts a 
        traditional educator preparation program or alternative routes 
        to State certification or licensure program and has fewer than 
        10 program participants in a program, the institution or entity 
        shall collect and publish information, as required under 
        paragraph (1) over a 3-year period.
            ``(5) Protection for teacher or leader identity and data 
        validity.--The Secretary, in consultation with the Commissioner 
        of the National Center for Education Statistics, shall ensure 
        that data collected under paragraph (1) and subsection (b) is 
        collected in a way to protect the privacy of teacher or school 
        leader candidates, as well as teachers or school leaders, and 
        to ensure there is sufficient data quality to ensure the 
        validity of conclusions to be drawn from the data collection.
    ``(b) State Report Card on the Quality of Educator Preparation.--
            ``(1) In general.--Each State that receives funds under 
        this Act shall provide to the Secretary, and make widely 
        available to the general public and to all local educational 
        agencies located within the State, including by sending 
        information about the State report card to every local 
        educational agency in the State, in a uniform and 
        comprehensible manner that conforms with the definitions and 
        methods established by the Secretary, an annual State report 
        card on the quality of educator preparation in the State, both 
        for traditional educator preparation programs and for 
        alternative routes to State certification or licensure 
        programs, which shall include not less than the following:
                    ``(A) All information reported under subsection 
                (a)(1), for the State as a whole, and for each educator 
                preparation program located within the State.
                    ``(B) For the most recent year for which the 
                information is available for each educator preparation 
                program located within the State--
                            ``(i) the number and percentage of recent 
                        program graduates hired into full-time 
                        positions as teachers or school leaders within 
                        1 year of certification or licensure, in the 
                        aggregate and reported separately by--
                                    ``(I) teachers in high-need subject 
                                areas or fields;
                                    ``(II) high-need schools; and
                                    ``(III) certification or licensure 
                                type;
                            ``(ii) for teacher preparation programs, 
                        the number and percentage of recent program 
                        graduates hired into full-time positions as 
                        teachers who served for periods of not less 
                        than 3 academic years after their initial 
                        placement in a teacher position, in the 
                        aggregate and reported separately by--
                                    ``(I) teachers in high-need subject 
                                areas or fields;
                                    ``(II) high-need schools;
                                    ``(III) certification or licensure 
                                type; and
                            ``(iii) for school leader preparation 
                        programs, the number and percentage of recent 
                        program graduates hired into full-time 
                        positions as school leaders who served for 
                        periods of not less than 3 academic years after 
                        their initial placement in a school leader 
                        position, in the aggregated and reported 
                        separately by--
                                    ``(I) principals;
                                    ``(II) assistant principals; and
                                    ``(III) high-need schools.
                    ``(C) For recent program graduates at each educator 
                preparation program in the State--
                            ``(i) the percentage of recent program 
                        graduates whose elementary and secondary 
                        students demonstrate evidence of improved 
                        student growth on State teacher or leader 
                        evaluation systems, if States have such teacher 
                        or leader evaluation systems; and
                            ``(ii) the percentage of recent program 
                        graduates who are rated highly based on results 
                        from State-administered satisfaction surveys, 
                        as available, and the percentage of recent 
                        program graduates who self-identify as prepared 
                        to be effective teachers or school leaders 
                        based on results from State-administered 
                        satisfaction surveys, as available.
                    ``(D) Any educator preparation program that has a 
                first-time passage rate for all test takers from the 
                program (regardless of whether or not they are 
                considered program graduates) on assessments used for 
                teacher or school leader certification or licensure 
                below 80 percent.
                    ``(E) The total number of teachers certified or 
                licensed in the preceding year in each high-need 
                subject or field, as compared to the number of teachers 
                needed in each high-need subject or field, and the 
                total number of school leaders certified or licensed in 
                the preceding year and serving in a high-need school 
                compared to the number of school leaders needed in a 
                high-need school, by elementary schools and secondary 
                schools located within the State.
            ``(2) State report card distribution and publication.--Each 
        academic year, a State shall--
                    ``(A) submit the report card required under 
                paragraph (1) for the State and for each educator 
                preparation program in the State to the Secretary;
                    ``(B) publish the State's and each educator 
                preparation program's report cards on the website of 
                the State educational agency;
                    ``(C) require that each educator preparation 
                program in the State publish the report card required 
                under paragraph (1) on the program's website and 
                provide the report card to prospective teacher and 
                school leader candidates as well as teacher and school 
                leader candidates accepted for admission; and
                    ``(D) provide the report card required under 
                paragraph (1) to each local educational agency in the 
                State.
            ``(3) Low-performing programs.--Each State receiving funds 
        under this Act shall provide--
                    ``(A) the State's criteria for assessing the 
                performance of educator preparation programs in the 
                State, including the measures described in section 
                212(a);
                    ``(B) a list of all programs identified as low 
                performing under section 212, and an identification of 
                those programs at risk of being placed on such list, 
                including a specification of the factors that led to 
                each program's identification;
                    ``(C) for States that do not identify any programs 
                as low performing under section 212 or at risk of being 
                classified as low performing, a description of the 
                reliability and validity of the measures used to assess 
                program performance and evidence that each program met 
                the State's criteria for assessing performance of 
                teacher preparation programs and school leader 
                preparation programs; and
                    ``(D) for States that do not identify any programs 
                as low performing under section 212 or at risk of being 
                classified as low performing, an explanation of why 
                programs that have first-time passage rates under 80 
                percent on assessments used for teacher or school 
                leader certification or licensure are not identified as 
                low-performing by the State.
            ``(4) Prohibition against creating a national list.--The 
        Secretary shall not create a national list or ranking of 
        States, institutions, or schools using the scaled scores 
        provided under this subsection.
    ``(c) Data Quality.--The Secretary shall prescribe regulations to 
ensure the reliability, validity, integrity, and accuracy of the data 
submitted pursuant to this section.
    ``(d) Report of the Secretary on the Quality of Educator 
Preparation.--
            ``(1) Report card.--The Secretary shall annually provide to 
        the authorizing committees, and publish and make widely 
        available, a report card on teacher and school leader 
        qualifications and preparation in the United States, including 
        all the information reported in subsection (b)(1). Such report 
        shall identify States which received a grant under this part as 
        part of an eligible partnership.
            ``(2) Report to congress.--The Secretary shall prepare and 
        submit a report to the authorizing committees and make such 
        report publicly available that contains the following:
                    ``(A) A comparison of States' efforts to improve 
                the quality of the current and future educator force, 
                including a list of those States that did not identify 
                any programs as low performing under section 212, or at 
                risk for being identified as low performing, and an 
                assessment of the reliability and validity of the 
                criteria used to by such States to evaluate program 
                performance.
                    ``(B) A comparison of eligible partnerships' 
                efforts to improve the quality of the current and 
                future educator force.
                    ``(C) The national mean and median scaled scores 
                and pass rate on any standardized test that is used in 
                more than one State for teacher or school leader 
                certification or licensure.
            ``(3) Special rule.--In the case of a teacher preparation 
        program or school leader preparation program with fewer than 10 
        graduates in a program, the Secretary shall collect and 
        publish, and make publicly available, the information required 
        under subsection (b)(1) taken over a 3-year period.
    ``(e) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under this 
part among States for individuals who took State teacher certification 
or licensure assessments in a State other than the State in which the 
individual received the individual's most recent degree.

``SEC. 211. GOALS FOR MEETING THE NEEDS OF EDUCATOR SHORTAGE AREAS.

    ``(a) Annual Goals.--Each institution of higher education that 
offers a traditional educator preparation program (including programs 
that offer any ongoing professional development programs) or 
alternative routes to State certification or licensure program, and 
that enrolls students receiving Federal assistance under this Act, and 
each non-institution of higher education-based educator preparation 
entity receiving Federal assistance shall set annual quantifiable goals 
for increasing the number of prospective educators trained in educator 
shortage areas designated by the Secretary or by the State educational 
agency, including mathematics, science, special education, and 
instruction of English learners.
    ``(b) Assurances.--Each institution described in subsection (a) 
shall provide assurances to the Secretary that--
            ``(1) training provided to prospective educators responds 
        to the identified needs of the local educational agencies or 
        States where the institution's graduates are likely to teach or 
        lead, based on past hiring and recruitment trends;
            ``(2) training provided to prospective educators is closely 
        linked with the needs of schools and the instructional 
        decisions new teachers or school leaders face in the classroom 
        and school;
            ``(3) prospective special education teachers receive course 
        work in core academic subjects and receive training in 
        providing instruction in core academic subjects;
            ``(4) general education teachers receive training in 
        providing instruction to diverse populations, including 
        children with disabilities, English learners, and children from 
        low-income families; and
            ``(5) prospective educators receive training on how to 
        effectively meet the needs of urban and rural schools, as 
        applicable.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to require an institution to create a new educator 
preparation area of concentration or degree program or adopt a specific 
curriculum in complying with this section.

``SEC. 212. STATE IDENTIFICATION OF LOW-PERFORMING PROGRAMS.

    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall conduct an assessment to identify low-performing educator 
preparation programs in the State and to assist such programs through 
the provision of technical assistance. Each such State shall provide 
the Secretary with an annual list of low-performing educator 
preparation programs and an identification of those programs at risk of 
being placed on such list, as applicable. Such assessment shall be 
described in the report under section 210(b). Levels of performance 
shall be determined by the State and shall include, at minimum--
            ``(1) measures of candidates' academic strength, such as 
        median cumulative grade point averages or median standardized 
        entrance examination scores of admitted students;
            ``(2) first-time passage rates and scaled scores on 
        assessments used for teacher or school leader certification or 
        licensure by the State;
            ``(3) the number of hours of clinical training required for 
        program candidates;
            ``(4) programs' progress towards achieving goals set under 
        section 211(a);
            ``(5) employment outcomes for recent program graduates, 
        including job placement rates and retention rates, particularly 
        in high-need schools;
            ``(6) recent program graduates' results from teacher or 
        leader evaluations; and
            ``(7) results of satisfaction surveys, as applicable.
    ``(b) Termination of Eligibility.--Any educator preparation program 
from which the State has withdrawn the State's approval, or terminated 
the State's financial support, due to the low performance of the 
program based upon the State assessment described in subsection (a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department;
            ``(2) may not be permitted to accept or enroll any student 
        who receives aid under title IV in the institution's educator 
        preparation program;
            ``(3) shall provide transitional support, including 
        remedial services if necessary, for students enrolled at the 
        institution at the time of termination of financial support or 
        withdrawal of approval; and
            ``(4) shall be reinstated upon demonstration of improved 
        performance, as determined by the State.
    ``(c) Negotiated Rulemaking.--If the Secretary develops any 
regulations implementing subsection (b)(2), the Secretary shall submit 
such proposed regulations to a negotiated rulemaking process, which 
shall include representatives of States, institutions of higher 
education, and educational and student organizations.
    ``(d) Application of the Requirements.--The requirements of this 
section shall apply to both traditional educator preparation programs 
and alternative routes to State certification and licensure programs.

``SEC. 213. GENERAL PROVISIONS.

    ``(a) Methods.--The Secretary shall ensure that States, 
institutions of higher education, and educator preparation entities, 
use fair and equitable methods in reporting under this part and that 
the reporting methods do not reveal personally identifiable 
information.
    ``(b) Special Rule.--For each State that does not use content 
assessments as a means of ensuring that all teachers teaching in core 
academic subjects within the State are highly qualified, as required 
under section 1119 of the Elementary and Secondary Education Act of 
1965, in accordance with the State plan submitted or revised under 
section 1111 of such Act, and that each person employed as a special 
education teacher in the State who teaches elementary school or 
secondary school is highly qualified by the deadline, as required under 
section 612(a)(14)(C) of the Individuals with Disabilities Education 
Act, the Secretary shall--
            ``(1) to the extent practicable, collect data comparable to 
        the data required under this part from States, local 
        educational agencies, institutions of higher education, or 
        other entities that administer such assessments to teachers or 
        prospective teachers; and
            ``(2) notwithstanding any other provision of this part, use 
        such data to carry out requirements of this part related to 
        assessments, pass rates, and scaled scores.
    ``(c) Release of Information to Educator Preparation Programs.--
            ``(1) In general.--For the purpose of improving teacher and 
        school leader preparation programs, a State that receives funds 
        under this Act, or that participates as a member of a 
        partnership, consortium, or other entity that receives such 
        funds, shall provide to an educator preparation program any and 
        all pertinent education-related information that--
                    ``(A) may enable the educator preparation program 
                to evaluate the effectiveness of the program's 
                graduates or the program itself; and
                    ``(B) is possessed, controlled, or accessible by or 
                through the State.
            ``(2) Data required to be shared.--In addition to the 
        information described in paragraph (1), the State shall share 
        with each educator preparation program in the State, and to the 
        extent practicable, with educator preparation programs in other 
        States whose program graduates are teaching in the State, data 
        from teacher or school leader evaluation results, including any 
        information necessary to complete subsections (a) and (b) of 
        section 210.
            ``(3) Privacy.--The information and data required under 
        paragraphs (1) and (2) to be shared shall--
                    ``(A) include aggregate elementary and secondary 
                academic achievement, without revealing personally 
                identifiable information about an individual student, 
                for students who have been taught by graduates of the 
                educator preparation program, as available; and
                    ``(B) comply with section 444 of the General 
                Education Provisions Act (20 U.S.C. 1232g, commonly 
                known as the `Family Educational Rights and Privacy Act 
                of 1974').
    ``(d) Funding.--A State may use funds made available under section 
2113(a)(3) of the Elementary and Secondary Education Act of 1965 to 
carry out this section.

                 ``PART D--ENHANCING TEACHER EDUCATION

    ``Subpart 1--Honorable Augustus F. Hawkins Centers of Excellence

``SEC. 214. DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education that 
                offers a teacher preparation program that is--
                            ``(i) a part B institution (as defined in 
                        section 322);
                            ``(ii) a Hispanic-serving institution (as 
                        defined in section 502);
                            ``(iii) a Tribal College or University (as 
                        defined in section 316);
                            ``(iv) an Alaska Native-serving institution 
                        (as defined in section 317(b));
                            ``(v) a Native Hawaiian-serving institution 
                        (as defined in section 317(b));
                            ``(vi) a Predominantly Black Institution 
                        (as defined in section 318);
                            ``(vii) an Asian American and Native 
                        American Pacific Islander-serving institution 
                        (as defined in section 320(b)); or
                            ``(viii) a Native American-serving, 
                        nontribal institution (as defined in section 
                        319);
                    ``(B) a consortium of institutions described in 
                subparagraph (A); or
                    ``(C) an institution described in subparagraph (A), 
                or a consortium described in subparagraph (B), in 
                partnership with any other institution of higher 
                education, but only if the center of excellence 
                established under section 215 is located at an 
                institution described in subparagraph (A).
            ``(2) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965.

``SEC. 215. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.

    ``(a) Program Authorized.--From the amounts appropriated to carry 
out this part, the Secretary is authorized to award competitive grants 
to eligible institutions to establish centers of excellence.
    ``(b) Use of Funds.--Grants provided by the Secretary under this 
subpart shall be used to ensure that current and future teachers are 
highly qualified by carrying out 1 or more of the following activities:
            ``(1) Implementing reforms within teacher preparation 
        programs to ensure that such programs are preparing teachers 
        who are highly qualified, are able to understand scientifically 
        valid research, and are able to use advanced technology 
        effectively in the classroom, including use of instructional 
        techniques to improve student academic achievement, by--
                    ``(A) retraining or recruiting faculty; and
                    ``(B) designing (or redesigning) teacher 
                preparation programs that--
                            ``(i) prepare teachers to serve in low-
                        performing schools and close student 
                        achievement gaps, and that are based on 
                        rigorous academic content, scientifically valid 
                        research (including scientifically based 
                        reading research and mathematics research, as 
                        it becomes available), and challenging State 
                        academic content standards and student academic 
                        achievement standards; and
                            ``(ii) promote strong teaching skills.
            ``(2) Providing sustained and high-quality preservice 
        clinical training, including the mentoring of prospective 
        teachers by exemplary teachers, substantially increasing 
        interaction between faculty at institutions of higher education 
        and new and experienced teachers, school leaders, and other 
        administrators at elementary schools or secondary schools, and 
        providing support, including preparation time, for such 
        interaction.
            ``(3) Developing and implementing initiatives to promote 
        retention of highly qualified teachers and school leaders, 
        including minority teachers and school leaders, including 
        programs that provide--
                    ``(A) teacher or school leader mentoring from 
                exemplary teachers or school leaders, respectively; or
                    ``(B) induction and support for teachers and school 
                leaders during their first 3 years of employment as 
                teachers or school leaders, respectively.
            ``(4) Awarding scholarships based on financial need to help 
        students pay the costs of tuition, room, board, and other 
        expenses of completing a teacher preparation program, not to 
        exceed the cost of attendance.
            ``(5) Disseminating information on effective practices for 
        teacher preparation and successful teacher certification and 
        licensure assessment preparation strategies.
            ``(6) Activities authorized under section 202.
    ``(c) Application.--Any eligible institution desiring a grant under 
this subpart shall submit an application to the Secretary at such a 
time, in such a manner, and accompanied by such information as the 
Secretary may require.
    ``(d) Minimum Grant Amount.--The minimum amount of each grant under 
this subpart shall be $500,000.
    ``(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this subpart may use not more 
than 2 percent of the funds provided to administer the grant.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this subpart.

 ``Subpart 2--Preparing General Education Teachers To More Effectively 
                   Educate Students With Disabilities

``SEC. 216. TEACH TO REACH GRANTS.

    ``(a) Authorization of Program.--
            ``(1) In general.--The Secretary is authorized to award 
        grants, on a competitive basis, to eligible partnerships to 
        improve the preparation of general education teacher candidates 
        to ensure that such teacher candidates possess the knowledge 
        and skills necessary to effectively instruct students with 
        disabilities in general education classrooms.
            ``(2) Duration of grants.--A grant under this section shall 
        be awarded for a period of not more than 5 years.
            ``(3) Non-federal share.--An eligible partnership that 
        receives a grant under this section shall provide not less than 
        25 percent of the cost of the activities carried out with such 
        grant from non-Federal sources, which may be provided in cash 
        or in kind.
    ``(b) Definition of Eligible Partnership.--In this section, the 
term `eligible partnership' means a partnership that--
            ``(1) shall include--
                    ``(A) 1 or more departments or programs at an 
                institution of higher education--
                            ``(i) that prepare elementary or secondary 
                        general education teachers;
                            ``(ii) that have a program of study that 
                        leads to an undergraduate degree, a master's 
                        degree, or completion of a postbaccalaureate 
                        program required for teacher certification; and
                            ``(iii) the graduates of which are highly 
                        qualified;
                    ``(B) a department or program of special education 
                at an institution of higher education;
                    ``(C) a department or program at an institution of 
                higher education that provides degrees in core academic 
                subjects; and
                    ``(D) a high-need local educational agency; and
            ``(2) may include a department or program of mathematics, 
        earth or physical science, foreign language, or another 
        department at the institution that has a role in preparing 
        teachers.
    ``(c) Activities.--An eligible partnership that receives a grant 
under this section--
            ``(1) shall use the grant funds to--
                    ``(A) develop or strengthen an undergraduate, 
                postbaccalaureate, or master's teacher preparation 
                program by integrating special education strategies 
                into the general education curriculum and academic 
                content;
                    ``(B) provide teacher candidates participating in 
                the program under subparagraph (A) with skills related 
                to--
                            ``(i) response to intervention, positive 
                        behavioral interventions and supports, 
                        differentiated instruction, and data driven 
                        instruction;
                            ``(ii) universal design for learning;
                            ``(iii) determining and utilizing 
                        accommodations for instruction and assessments;
                            ``(iv) collaborating with special 
                        educators, related services providers, and 
                        parents, including participation in 
                        individualized education program development 
                        and implementation; and
                            ``(v) appropriately utilizing technology 
                        and assistive technology for students with 
                        disabilities; and
                    ``(C) provide extensive clinical training for 
                participants described in subparagraph (B) with 
                mentoring and induction program support throughout the 
                program that continues during the first 2 years of 
                full-time teaching; and
            ``(2) may use grant funds to develop and administer 
        alternate assessments of students with disabilities.
    ``(d) Application.--An eligible partnership seeking a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the Secretary may 
require. Such application shall include--
            ``(1) a self-assessment by the eligible partnership of the 
        existing teacher preparation program at the institution of 
        higher education and needs related to preparing general 
        education teacher candidates to instruct students with 
        disabilities; and
            ``(2) an assessment of the existing personnel needs for 
        general education teachers who instruct students with 
        disabilities, performed by the local educational agency in 
        which most graduates of the teacher preparation program are 
        likely to teach after completion of the program under 
        subsection (c)(1).
    ``(e) Peer Review.--The Secretary shall convene a peer review 
committee to review applications for grants under this section and to 
make recommendations to the Secretary regarding the selection of 
grantees. Members of the peer review committee shall be recognized 
experts in the fields of special education, teacher preparation, and 
general education and shall not be in a position to benefit financially 
from any grants awarded under this section.
    ``(f) Evaluations.--
            ``(1) By the partnership.--
                    ``(A) In general.--An eligible partnership 
                receiving a grant under this section shall conduct an 
                evaluation at the end of the grant period to 
                determine--
                            ``(i) the effectiveness of the general 
                        education teachers who completed a program 
                        under subsection (c)(1) with respect to 
                        instruction of students with disabilities in 
                        general education classrooms; and
                            ``(ii) the systemic impact of the 
                        activities carried out by such grant on how 
                        each institution of higher education that is a 
                        member of the partnership prepares teachers for 
                        instruction in elementary schools and secondary 
                        schools.
                    ``(B) Report to the secretary.--Each eligible 
                partnership performing an evaluation under subparagraph 
                (A) shall report the findings of such evaluation to the 
                Secretary.
            ``(2) Report by the secretary.--Not later than 180 days 
        after the last day of the grant period under this section, the 
        Secretary shall make available to Congress and the public the 
        findings of the evaluations submitted under paragraph (1), and 
        information on best practices related to effective instruction 
        of students with disabilities in general education classrooms.

                      ``PART E--GENERAL PROVISIONS

``SEC. 217. LIMITATIONS.

    ``(a) Federal Control Prohibited.--Nothing in this title shall be 
construed to permit, allow, encourage, or authorize any Federal control 
over any aspect of any private, religious, or home school, whether or 
not a home school is treated as a private school or home school under 
State law. This section shall not be construed to prohibit private, 
religious, or home schools from participation in programs or services 
under this title.
    ``(b) No Change in State Control Encouraged or Required.--Nothing 
in this title shall be construed to encourage or require any change in 
a State's treatment of any private, religious, or home school, whether 
or not a home school is treated as a private school or home school 
under State law.
    ``(c) National System of Teacher Certification or Licensure 
Prohibited.--Nothing in this title shall be construed to permit, allow, 
encourage, or authorize the Secretary to establish or support any 
national system of teacher certification or licensure.
    ``(d) Rule of Construction.--Nothing in this title shall be 
construed to alter or otherwise affect the rights, remedies, and 
procedures afforded to the employees of local educational agencies 
under Federal, State, or local laws (including applicable regulations 
or court orders) or under the terms of collective bargaining 
agreements, memoranda of understanding, or other agreements between 
such employees and their employers.
    ``(e) Teacher or School Leader Privacy.--No State, institution of 
higher education, or local educational agency shall be required to 
publicly report information in compliance with this title in a case in 
which the results would reveal personally identifiable information 
about an individual teacher or school leader.''.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. RULE OF CONSTRUCTION.

    Section 301 (20 U.S.C. 1051) is amended--
            (1) in the section heading by adding ``; rule of 
        construction'' after ``findings and purposes''; and
            (2) by adding at the end the following:
    ``(c) Rule of Construction.--Nothing in this Act shall be construed 
to restrict an institution from using funds provided under a section of 
this title for activities and uses that were authorized under such 
section on the day before the date of enactment of the Higher Education 
Affordability Act.''.

SEC. 302. PROGRAM PURPOSE.

    Section 311 (20 U.S.C. 1057) is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Authorized Activities.--Grants awarded under this section 
shall be used for 1 or more of the following activities:
            ``(1) The purchase, rental, or lease of educational 
        resources.
            ``(2) The construction, maintenance, renovation, or joint 
        use and improvement of classrooms, libraries, laboratories, or 
        other instructional facilities, including the integration of 
        computer technology into institutional facilities to create 
        smart buildings.
            ``(3) Support of faculty exchanges, faculty development, 
        and faculty fellowships to assist members of the faculty in 
        attaining advanced degrees in their field of instruction.
            ``(4) Student support services, including supporting 
        distance education, the development and improvement of academic 
        programs, tutoring, counseling, school-sanctioned travel, and 
        financial literacy for students and families.
            ``(5) Improving funds management, administrative 
        management, and the acquisition of equipment for use in 
        strengthening funds management.
            ``(6) Maintaining financial stability through establishing 
        or developing a contributions development office or endowment 
        fund.
            ``(7) Other activities proposed in the application 
        submitted pursuant to section 391 that--
                    ``(A) contribute to carrying out the purposes of 
                the program assisted under this section; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.''; and
            (2) in subsection (d)--
                    (A) in paragraph (2), by inserting ``75 percent 
                of'' after ``equal to or greater than''; and
                    (B) by adding at the end the following:
            ``(4) Scholarship.--An eligible institution that uses grant 
        funds provided under this part to establish or increase an 
        endowment fund may use the interest proceeds from such 
        endowment to provide scholarships to students for the purposes 
        of attending such institution.''.

SEC. 303. DURATION OF GRANT.

    Section 313 (20 U.S.C. 1059) is amended by adding at the end the 
following:
    ``(e) Requirement for Additional Funding.--
            ``(1) In general.--The Secretary shall not award grant 
        funds for the fourth or fifth year of a grant under this part 
        unless the Secretary determines that the grantee is making 
        progress in implementing the activities described in the 
        grantee's application under section 391 at a rate that will 
        result in the full implementation of such activities before the 
        end of the grant period.
            ``(2) Consideration of data and information.--The Secretary 
        shall consider any data or information provided to the 
        Department by grantees for the continued receipt of grants 
        under this title under paragraph (1) that is considered in 
        accordance with regulations issued by the Secretary before the 
        date of enactment of the Higher Education Affordability Act. 
        Any requirements the Secretary develops for institutions in 
        accordance with regulations issued by the Secretary after the 
        date of enactment of the Higher Education Affordability Act to 
        carry out this subsection shall take into account the capacity 
        and resources of institutions to comply with such 
        requirements.''.

SEC. 304. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
              UNIVERSITIES.

    Section 316 (20 U.S.C. 1059c) is amended--
            (1) in subsection (c)--
                    (A) by striking subparagraphs (A) through (N) and 
                inserting the following:
                    ``(A) The activities described in section 311(c).
                    ``(B) Academic instruction in disciplines in which 
                Indians are underrepresented and instruction in tribal 
                governance or tribal public policy.
                    ``(C) Establishing or enhancing a program of 
                teacher education designed to qualify students to teach 
                in elementary schools or secondary schools, with a 
                particular emphasis on teaching Indian children and 
                youth, that shall include, as part of such program, 
                preparation for teacher certification.
                    ``(D) Establishing community outreach programs that 
                encourage Indian elementary school and secondary school 
                students to develop the academic skills and the 
                interest to pursue postsecondary education.'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
                            (i) in paragraph (2), as redesignated by 
                        subparagraph (C)--
                            (ii) by inserting ``not less than 75 
                        percent of'' after ``in an amount equal to''; 
                        and
                            (iii) by adding at the end the following:
                    ``(D) Scholarship.--A Tribal College or University 
                that uses grant funds under this section to establish 
                or increase an endowment fund may use the interest 
                proceeds from such endowment to provide scholarships to 
                students for the purposes of attending such Tribal 
                College or University.''; and
            (2) in subsection (d)--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2), (3), and (4), 
                as paragraphs (1), (2), and (3), respectively.

SEC. 305. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    Section 317(c) (20 U.S.C. 1059d(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Authorized Activities.--'' in the 
                subsection heading and all that follows through 
                ``Grants awarded under this section shall'' and 
                inserting ``Authorized Activities.--Grants awarded 
                under this section shall''; and
                    (B) by inserting ``Such activities may include the 
                activities described in section 311(c).'' after 
                ``capacity to serve Alaska Natives or Native 
                Hawaiians.''; and
            (2) by striking paragraph (2).

SEC. 306. PREDOMINANTLY BLACK INSTITUTIONS.

    Section 318(d) (20 U.S.C. 1059e(d)) is amended--
            (1) in paragraph (2)(A), by striking ``paragraphs (1) 
        through (12)'' and inserting ``paragraphs (1) through (7)''; 
        and
            (2) in paragraph (3)(B), by inserting ``75 percent of'' 
        after ``equal to or greater than''.

SEC. 307. NATIVE AMERICAN-SERVING NONTRIBAL INSTITUTIONS.

    Section 319(c) (20 U.S.C. 1059f(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Authorized Activities.--'' in the 
                subsection heading and all that follows through 
                ``Grants awarded under this section shall'' and 
                inserting ``Authorized Activities.--Grants awarded 
                under this section shall''; and
                    (B) by inserting ``Such activities may include the 
                activities described in section 311(c).'' after ``serve 
                Native Americans and low-income individuals.''; and
            (2) by striking paragraph (2).

SEC. 308. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-SERVING 
              INSTITUTIONS.

    Section 320(c)(2) (20 U.S.C. 1059g(c)(2)) is amended by striking 
subparagraphs (A) through (N) and inserting the following:
                    ``(A) the activities described in section 311(c);
                    ``(B) academic instruction in disciplines in which 
                Asian Americans and Native American Pacific Islanders 
                are underrepresented;
                    ``(C) conducting research and data collection for 
                Asian American and Native American Pacific Islander 
                populations and subpopulations; and
                    ``(D) establishing partnerships with community-
                based organizations serving Asian Americans and Native 
                American Pacific Islanders.''.

SEC. 309. NATIVE AMERICAN EDUCATION TUITION COST SHARE.

    Part A of title III of the Higher Education Act of 1965 (20 U.S.C. 
1057 et seq.) is amended by inserting after section 319 the following:

``SEC. 319A. NATIVE AMERICAN EDUCATION TUITION COST SHARE.

    ``(a) Amount of Payment.--
            ``(1) In general.--Subject to paragraphs (2) and (3), for 
        fiscal year 2015 and each succeeding fiscal year, the Secretary 
        shall pay to any eligible college an amount equal to 40 percent 
        of the total amount of charges for tuition for such year, and 
        the State shall pay 60 percent of such charges for such year, 
        for all Native American Indian students who--
                    ``(A) are not residents of the State in which the 
                college they attend is located; and
                    ``(B) are enrolled in the college for the academic 
                year ending immediately prior to the beginning of such 
                fiscal year.
            ``(2) Eligible colleges.--For purposes of this section, an 
        eligible college is any institution of higher education serving 
        Native American Indian students that provides tuition-free 
        education to such students, as mandated by Federal law, with 
        the support of the State in which the college is located, in 
        fulfillment of a condition under which the State or college 
        received its original grant of land and facilities from the 
        United States.
    ``(b) Treatment of Payment.--Any amounts received by an eligible 
college under this section shall be treated as a reimbursement from the 
State in which the college is located, and shall be considered as 
provided in fulfillment of any Federal mandate upon the State to admit 
Native American Indian students free of charge of tuition.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to relieve any State from any mandate the State may have 
under Federal law to reimburse a college for each academic year--
            ``(1) with respect to Native American Indian students 
        enrolled in the college who are not residents of the State in 
        which the college is located, any amount of charges for tuition 
        for such students for such academic year that exceeds the 
        amount received under this section for such academic year; and
            ``(2) with respect to Native American Indian students 
        enrolled in the college who are residents of the State in which 
        the college is located, an amount equal to the charges for 
        tuition for such students for such academic year.
    ``(d) Definition.--In this section, the term `Native American 
Indian student' means an Indian pupil (as such term has been defined 
for purposes of Federal laws that impose a mandate upon a State or 
college to provide tuition-free education to Native American Indian 
students in fulfillment of a condition under which the State or college 
received its original grant of land and facilities from the United 
States).''.

SEC. 310. GRANTS TO INSTITUTIONS.

    Section 323 (20 U.S.C. 1062) is amended--
            (1) in subsection (a), by striking paragraphs (1) through 
        (15) and inserting the following:
            ``(1) The purchase, rental, or lease of educational 
        resources.
            ``(2) The construction, maintenance, renovation, or joint 
        use and improvement of classrooms, libraries, laboratories, or 
        other instructional facilities, including the integration of 
        computer technology into institutional facilities to create 
        smart buildings.
            ``(3) Support of faculty exchanges, faculty development, 
        and faculty fellowships to assist members of the faculty in 
        attaining advanced degrees in their field of instruction.
            ``(4) Student academic and support services, including 
        supporting distance education (including through the purchase 
        or rental of telecommunications technology equipment or 
        services), the development and improvement of academic programs 
        and curricula, tutoring, counseling, school-sanctioned travel, 
        and financial literacy for students and families.
            ``(5) Improving funds management, administrative 
        management, and the acquisition of technology, services and 
        equipment for use in strengthening funds and administrative 
        management.
            ``(6) Maintaining financial stability through establishing 
        or developing a contributions development office or endowment 
        fund.
            ``(7) Initiatives to improve the educational outcomes of 
        African-American males.
            ``(8) Other activities proposed in the application 
        submitted pursuant to section 325 that--
                    ``(A) contribute to carrying out the purposes of 
                the program assisted under this section; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.''; and
            (2) in subsection (b)--
                    (A) in paragraph (2), by inserting ``75 percent 
                of'' after ``equal to or greater than''; and
                    (B) by adding at the end the following:
            ``(4) Scholarship.--An institution that uses grant funds 
        provided under this part to establish or increase an endowment 
        fund may use the interest proceeds from such endowment to 
        provide scholarships to students for the purposes of attending 
        such institution.''.

SEC. 311. ALLOTMENTS TO INSTITUTIONS.

    Section 324(c) (20 U.S.C. 1063(c)) is amended by striking ``5 
years'' and inserting ``6 years''.

SEC. 312. PROFESSIONAL OR GRADUATE INSTITUTIONS.

    Section 326 (20 U.S.C. 1063b) is amended by striking subsection (c) 
and inserting the following:
    ``(c) Uses of Funds.--
            ``(1) In general.--A grant under this section may be used 
        for 1 or more of the following activities:
                    ``(A) The purchase, rental, or lease of educational 
                resources.
                    ``(B) The construction, maintenance, renovation, or 
                joint use and improvement of classrooms, libraries, 
                laboratories, or other instructional facilities, 
                including the integration of computer technology into 
                institutional facilities to create smart buildings.
                    ``(C) Support of faculty exchanges, faculty 
                development, and faculty fellowships to assist members 
                of the faculty in attaining advanced degrees in their 
                field of instruction.
                    ``(D) Student academic support services, including 
                supporting distance education (including through the 
                purchase or rental of telecommunications technology 
                equipment or services), the development and improvement 
                of academic programs, tutoring, counseling, school-
                sanctioned travel, distance education, and financial 
                literacy for students and families.
                    ``(E) Improving funds management, administrative 
                management, and the acquisition of technology, 
                services, and equipment for use in strengthening funds 
                and administrative management.
                    ``(F) Maintaining financial stability through 
                establishing or developing a contributions development 
                office or endowment fund.
                    ``(G) Other activities proposed in the applications 
                submitted pursuant to subsection (d) and section 391 
                that--
                            ``(i) contribute to carrying out the 
                        purposes of the program assisted under this 
                        section; and
                            ``(ii) are approved by the Secretary as 
                        part of the review and acceptance of such 
                        application.''.

SEC. 313. APPLICATIONS FOR ASSISTANCE.

    Section 391(b) (20 U.S.C. 1068(b)) is amended--
            (1) by redesignating paragraphs (6) through (8) as 
        paragraphs (7) through (9); and
            (2) by inserting after paragraph (5), the following:
            ``(6) provide an assurance that the institution will report 
        to the Secretary on--
                    ``(A) the number and percentage of undergraduate 
                students who upon entry into the institution 
                matriculate into a major field of study or other 
                program leading to a postsecondary certificate, an 
                associate's degree, or a baccalaureate degree;
                    ``(B) student persistence data for the 
                institution's undergraduates, demonstrating the number 
                and percentage of students who are continuously 
                enrolled in the institution, which shall be measured in 
                a manner proposed by the institution and approved by 
                the Secretary; and
                    ``(C) data on the number and percentage of 
                undergraduate students making satisfactory progress, as 
                defined in accordance with section 484(c).''.

SEC. 314. LIMITATIONS ON FEDERAL INSURANCE FOR BONDS ISSUED BY THE 
              DESIGNATED BONDING AUTHORITY.

    Section 344(a) (20 U.S.C. 1066c(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``$1,100,000,000'' and inserting ``$3,000,000,000'';
            (2) in paragraph (1), by striking ``$733,333,333'' and 
        inserting ``$2,088,000,000''; and
            (3) in paragraph (2), by striking ``$366,666,667'' and 
        inserting ``$912,000,000''.

SEC. 315. AUTHORIZATION OF APPROPRIATIONS.

    Section 399(a) (20 U.S.C. 1068h(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``$135,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015'';
                    (B) in subparagraph (B), by striking ``$30,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015'';
                    (C) in subparagraph (C), by striking ``$15,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015'';
                    (D) in subparagraph (D), by striking ``$75,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015'';
                    (E) in subparagraph (E), by striking ``$25,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015''; and
                    (F) in subparagraph (F), by striking ``$30,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``$375,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015''; and
                    (B) in subparagraph (B), by striking ``$125,000,000 
                for fiscal year 2009'' and inserting ``such sums as may 
                be necessary for fiscal year 2015'';
            (3) in paragraph (3), by striking ``$10,000,000 for fiscal 
        year 2009'' and inserting ``such sums as may be necessary for 
        fiscal year 2015'';
            (4) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``$185,000 for 
                fiscal year 2009'' and inserting ``such sums as may be 
                necessary for fiscal year 2015''; and
                    (B) in subparagraph (B), by striking ``fiscal year 
                2009'' and inserting ``fiscal year 2015''; and
            (5) in paragraph (5)--
                    (A) in subparagraph (A), by striking ``$12,000 for 
                fiscal year 2009'' and inserting ``such sums as may be 
                necessary for fiscal year 2015''; and
                    (B) in subparagraph (B), by striking ``fiscal year 
                2009'' and inserting ``fiscal year 2015''.

                      TITLE IV--STUDENT ASSISTANCE

                       PART A--GRANTS TO STUDENTS

                     Subpart 1--Federal Pell Grants

SEC. 401. YEAR-ROUND FEDERAL PELL GRANTS; EXTENSION OF FEDERAL PELL 
              GRANT INFLATION ADJUSTMENTS.

    Section 401 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1), by striking ``through fiscal year 
        2017'' and inserting ``through fiscal year 2020'';
            (2) in subsection (b)--
                    (A) in paragraph (2)(A)(ii), by striking 
                ``paragraph (7)(B)'' and inserting ``paragraph 
                (9)(B)'';
                    (B) by redesignating paragraphs (5) through (7) as 
                paragraphs (7) through (9), respectively;
                    (C) by inserting after paragraph (4) the following:
    ``(5)(A) The purpose of this paragraph is to establish a year-round 
Federal Pell Grant program to allow eligible students to accelerate the 
time needed to earn a degree.
    ``(B) In this paragraph, the term `eligible student' means a 
student who--
            ``(i) has received a Federal Pell Grant for an award year 
        and is enrolled in a program of study for 1 or more additional 
        payment periods during the same award year that are not 
        otherwise covered by the student's Federal Pell Grant;
            ``(ii) continues to meets all eligibility requirements to 
        receive a Federal Pell Grant under this section; and
            ``(iii) attends an institution of higher education on not 
        less than a half-time basis.
    ``(C) Notwithstanding any other provision of this subsection, the 
Secretary shall award an additional Federal Pell Grant to an eligible 
student for the additional payment periods during an award year that 
are not otherwise covered by the student's Federal Pell Grant for the 
award year.
    ``(D) In the case of a student receiving more than one Federal Pell 
Grant in a single award year under subparagraph (C), the total amount 
of the Federal Pell Grants awarded to such student for the award year 
shall not exceed an amount equal to 150 percent of the total maximum 
Federal Pell Grant for such award year calculated in accordance with 
paragraph (9)(C)(iv)(II).
    ``(E) Any period of study covered by a Federal Pell Grant awarded 
under subparagraph (C) shall be included in determining a student's 
duration limit under subsection (c)(5).
    ``(6) In any case where an eligible student is receiving a Federal 
Pell Grant for a payment period that spans 2 award years, the Secretary 
shall allow the eligible institution in which the student is enrolled 
to determine the award year to which the additional period shall be 
assigned.''; and
                    (D) in paragraph (9)(C), as redesignated by 
                subparagraph (B)--
                            (i) in clause (ii)--
                                    (I) in the clause heading, by 
                                striking ``2017-2018'' and inserting 
                                ``2020-2021''; and
                                    (II) in the matter preceding 
                                subclause (I), by striking ``2017-
                                2018'' and inserting ``2020-2021''; and
                            (ii) in clause (iii)--
                                    (I) by striking ``2018-2019'' and 
                                inserting ``2021-2022''; and
                                    (II) by striking ``2017-2018'' and 
                                inserting ``2020-2021''; and
            (3) by adding at the end the following:
    ``(k) Notification of Pell Grant Eligibility.--
            ``(1) In general.--Each eligible institution shall notify 
        each student enrolled in the institution who is receiving a 
        Federal Pell Grant of the student's remaining period of 
        eligibility for a Federal Pell Grant in accordance with 
        subsection (c)(5), at the times required under paragraph (2) 
        and (3).
            ``(2) Frequency of notifications.--An eligible institution 
        shall provide the notification described in paragraph (1) to a 
        student receiving a Federal Pell Grant--
                    ``(A) not less than once a year while the student 
                is enrolled in the institution; and
                    ``(B) in the case of a student with 2 years, or 
                less, of Federal Pell Grant eligibility remaining, not 
                less than once a semester (or its equivalent) while the 
                student is enrolled in the institution.
            ``(3) Pell grant recipients who are borrowers.--In the case 
        of a student who is receiving a Federal Pell Grant who is also 
        a borrower of a loan made, insured, or guaranteed under part B 
        (other than a loan made pursuant to section 428C or a loan made 
        on behalf of a student pursuant to section 428B) or made under 
        part D (other than a Federal Direct Consolidation Loan or a 
        Federal Direct PLUS loan made on behalf of a student), the 
        requirement described in paragraph (1) shall be carried out in 
        accordance with the notification and counseling requirements 
        described in section 485(n).''.

SEC. 401A. COLLEGE OPPORTUNITY AND GRADUATION BONUS DEMONSTRATION 
              PROGRAM.

    Subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is 
amended by adding at the end the following:

``SEC. 401B. COLLEGE OPPORTUNITY AND GRADUATION BONUS DEMONSTRATION 
              PROGRAM.

    ``(a) Demonstration Program Authority.--The Secretary is authorized 
to establish a demonstration program--
            ``(1) to reward eligible institutions of higher education 
        that enroll and graduate a significant number of low- and 
        moderate-income students on time; and
            ``(2) to encourage institutions of higher education to 
        improve their performance in enrolling and graduating a 
        significant number of low- and moderate-income students on 
        time.
    ``(b) Grants.--The Secretary shall carry out the demonstration 
program described in paragraph (1) by awarding grants to eligible 
institutions of higher education in not more than 5 eligible States 
selected in accordance with subsection (c) that the Secretary 
determines have a strong record of supporting, reforming, and improving 
the performance of the State's public higher education systems in order 
to make college more affordable and increase college access and 
success, especially for low-income students.
    ``(c) Eligible States.--The Secretary shall select eligible States 
based on the extent to which a State has--
            ``(1) invested, and continues to invest, significantly in 
        public higher education, resulting in a lower net price for 
        low-income students, as compared to the net price for such 
        students in other States;
            ``(2) adopted policy reforms to ensure seamless transitions 
        into higher education and among public institutions of higher 
        education, such as dual enrollment and guaranteed credit 
        transfers;
            ``(3) allocated State financial aid primarily on the basis 
        of need, and
            ``(4) met other criteria, as determined by the Secretary.
    ``(d) Institutional Eligibility.--The Secretary shall establish 
criteria for the eligibility of institutions that are located in 
eligible States on the basis of--
            ``(1) the percentage of the institution's graduating class 
        that is comprised of Pell Grant recipients;
            ``(2) the institution's graduation rate;
            ``(3) the institution's average net price; and
            ``(4) other criteria, as determined by the Secretary.
    ``(e) Uses of Funds.--Each eligible institution of higher education 
that receives a grant under this section shall use the grant funds to 
support reforms to further increase college access and success for low- 
and moderate-income students, by making key investments and adopting 
best practices, such as--
            ``(1) awarding additional need-based financial aid;
            ``(2) enhancing academic and student support services;
            ``(3) improving student learning and other outcomes while 
        reducing costs;
            ``(4) using technology to scale and enhance improvements; 
        and
            ``(5) establishing or expanding accelerated learning 
        opportunities.
    ``(f) Amount of Grant Funds.--
            ``(1) In general.--Each eligible institution of higher 
        education that receives a grant under this section shall 
        receive annual grant funds in an amount equal to--
                    ``(A) the number of Pell Grant recipients who 
                graduate from the institution on time (defined as an 
                amount of time equal to or less than 100 percent of 
                program length based on full-time enrollment status) in 
                the previous academic year; multiplied by
                    ``(B) a per-student base amount, which shall be 
                determined by the Secretary and shall be based on the 
                type of institution receiving the grant (such as 
                whether the institution provides a 2-year program or a 
                4-year program).
            ``(2) Additional per-student funds.--In addition to the 
        amount of grant funds awarded under paragraph (1), the 
        Secretary shall award eligible institutions that graduate a 
        number of Pell Grant recipients in excess of a certain 
        threshold number established by the Secretary, a per-student 
        bonus amount (in excess of the per student base amount 
        described in paragraph (1)(B)) for each additional Pell Grant 
        recipient who graduates from the institution that is in excess 
        of that threshold.
    ``(g) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant--
            ``(1) other State funds that eligible States would 
        otherwise expend to carry out activities under this section to 
        improve college affordability and graduate additional low-
        income and moderate-income students; and
            ``(2) other institutional funds that eligible institutions 
        receiving a grant under this section would otherwise expend to 
        carry out activities under this section to improve college 
        affordability and graduate additional low-income and moderate-
        income students.
    ``(h) Evaluation.--Not later than 3 years after the enactment of 
this section, the Secretary shall prepare and submit to Congress a 
report that contains an evaluation of the effectiveness of the pilot 
program under this section in improving college access and success for 
low-income and moderate-income students.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the five succeeding fiscal years.''.

        Subpart 2--Early Awareness of College Financing Options

SEC. 403. FEDERAL TRIO PROGRAMS AUTHORIZATION.

    Section 402A(g) (20 U.S.C. 1070a-11(g)) is amended by striking 
``$900,000,000'' and all that follows through ``years.'' and inserting 
``such sums as may be necessary for fiscal year 2015 and each of the 
five succeeding fiscal years.''.

SEC. 404. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORIZATION.

    Section 402E(g) (20 U.S.C. 1070a-15(g)) is amended by striking 
``each of the fiscal years 2009 through 2014'' and inserting ``fiscal 
year 2015 and each of the five succeeding fiscal years''.

SEC. 405. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
              PROGRAMS AUTHORIZATION.

    Section 404H (20 U.S.C. 1070a-28) is amended by striking 
``$400,000,000'' and all that follows through the period at the end and 
inserting ``such sums as may be necessary for fiscal year 2015 and each 
of the five succeeding fiscal years''.

SEC. 405A. EARLY AWARENESS OF COLLEGE FINANCING OPTIONS.

    Subpart 2 of part A of title IV (20 U.S.C. 1070a-11 et seq.) is 
amended by adding at the end the following:

       ``CHAPTER 3--EARLY AWARENESS OF COLLEGE FINANCING OPTIONS

``SEC. 405A. EARLY AWARENESS OF COLLEGE FINANCING OPTIONS.

    ``(a) Purpose.--The purpose of this section is to establish a 
demonstration program that explores the effectiveness of early 
notification of postsecondary financial aid options and the cost of 
postsecondary education.
    ``(b) Grants Authorized; Duration.--
            ``(1) Grants authorized.--From amounts appropriated under 
        subsection (l) and not reserved under paragraph (3), and 
        beginning after the first postsecondary education information 
        form described in subsection (h) has been developed, the 
        Secretary is authorized to award grants to 15 State educational 
        agencies to enable such agencies to pay the expenses, including 
        the expenses of local educational agencies in the State, for 
        providing information in a cost-effective way to students in 
        grades 8 through 12 in order to--
                    ``(A) increase student awareness of, and access to, 
                postsecondary education; and
                    ``(B) increase the likelihood that those students 
                will apply for postsecondary financial aid and attend 
                an institution of higher education.
            ``(2) Duration.--A grant awarded under this section shall 
        be awarded for a 3-year period.
            ``(3) Reservation of funds.--From amounts made available to 
        carry out this section for a fiscal year, the Secretary may 
        reserve not more than 1 percent to award a grant to the Bureau 
        of Indian Education, to enable the Bureau to carry out the 
        purposes of this section with respect to schools operated or 
        funded by the Bureau.
    ``(c) State Educational Agency Applications.--
            ``(1) In general.--Each State educational agency desiring 
        to participate in the demonstration program under this section 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary may require.
            ``(2) Contents.--Each application described in paragraph 
        (1) shall include--
                    ``(A) a commitment to utilize the postsecondary 
                education information form described in subsection (h) 
                (referred to in this section as the `information 
                form'), including the provision of State-specific grant 
                aid information, as described in subsection (h)(1)(G);
                    ``(B) a description of how the State educational 
                agency plans to disseminate the information form to 
                every school serving grades 8 through 12 in the State;
                    ``(C) an assurance that the State educational 
                agency will fully cooperate with the ongoing evaluation 
                of the demonstration program; and
                    ``(D) such other information as the Secretary may 
                require.
    ``(d) Selection Considerations.--In selecting State educational 
agencies to participate in the demonstration program under this 
section, the Secretary shall consider--
            ``(1) the number and quality of State educational agency 
        applications received;
            ``(2) the geographic diversity of applicants; and
            ``(3) a State educational agency's--
                    ``(A) financial responsibility;
                    ``(B) administrative capability; and
                    ``(C) ability to ensure that the activities carried 
                out under the demonstration program serve all students 
                in grades 8 through 12 in the State.
    ``(e) Selection Priority.--In selecting State educational agencies 
to participate in the demonstration program under this section, the 
Secretary shall give priority to those States that have a high 
percentage of students who are eligible for free and reduced priced 
lunches under the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.) or who are, or come from families that are, 
eligible for benefits under another means-tested Federal benefit 
program as defined in section 479(d)(2).
    ``(f) Activities.--Each State educational agency receiving a grant 
under this section shall carry out the following activities:
            ``(1) Make the information form available to every school 
        in the State that serves students in grades 8 through 12 so 
        that such schools can distribute the form to each student in 
        grades 8 through 12, not less than once each school year, 
        utilizing the most useful, effective, and relevant modes of 
        communication, including through technology.
            ``(2) Develop a statewide public awareness campaign, using 
        a variety of media, to inform students about the cost of 
        postsecondary education and the availability of financial aid.
            ``(3) Ensure that local educational agencies serving 
        students who receive the information form will participate in 
        the evaluation of the demonstration program, and that data from 
        such local educational agencies will be made available in 
        accordance with the requirements of section 444 of the General 
        Education Provisions Act (20 U.S.C. 1232g) (commonly known as 
        the `Family Educational Rights and Privacy Act of 1974').
            ``(4) Conduct annual surveys of a representative sample of 
        students who receive the information form, both before the 
        receipt of such form and after the receipt of such form, to 
        determine the short-term and long-term effects of the 
        information form, including--
                    ``(A) such students' knowledge about the cost of 
                postsecondary education and financial aid options;
                    ``(B) the likelihood of such students applying for 
                financial aid, attending an institution of higher 
                education, and enrolling in Advanced Placement, 
                International Baccalaureate, dual enrollment, or early 
                college high school programs; and
                    ``(C) any other information the State educational 
                agency determines relevant.
    ``(g) Development of an Initial Form.--
            ``(1) Initial development.--Not later than 90 days after 
        the date of enactment of the Higher Education Affordability 
        Act, the Secretary, in consultation with the heads of relevant 
        Federal agencies and representatives of higher education 
        mentors, admissions staff from institutions of higher 
        education, financial aid staff, student and parent focus groups 
        (including students and parents from low-income families), 
        consumer advocates, and secondary school guidance counselors, 
        shall complete the development of an initial model form of 
        postsecondary education information (referred to in this 
        subsection as the `initial form').
            ``(2) Consumer testing process.--The Secretary shall--
                    ``(A) submit the initial form for consumer testing 
                that is in accordance with section 483C and includes 
                the representatives described in paragraph (1); and
                    ``(B) not later than 60 days after the conclusion 
                of the consumer testing under subparagraph (A), use the 
                results of the consumer testing of the initial form in 
                the development of a final information form described 
                in subsection (h).
    ``(h) Postsecondary Education Information Form.--
            ``(1) In general.--The Secretary shall develop, using the 
        best available evidence and research, an information form that 
        the Secretary shall update annually and distribute to all State 
        educational agencies that receive a grant under this section. 
        The information form shall contain, at a minimum, the following 
        information:
                    ``(A) Information about Federal Pell Grants, 
                including--
                            ``(i) the maximum amount of a Federal Pell 
                        Grant for the award year in which the form will 
                        be disbursed to students, as determined under 
                        clauses (i) and (ii) of section 401(b)(2)(A), 
                        which shall be the most visually prominent 
                        figure on the information form; and
                            ``(ii) information about when, and how, a 
                        student may apply for a Federal Pell Grant.
                    ``(B) Information on--
                            ``(i) Federal student financial aid 
                        options, including a description of all 
                        available Federal grants (including Federal 
                        supplemental educational opportunity grants 
                        under subpart 3), loans (including loans under 
                        parts D and E), work study assistance under 
                        part C, and scholarships for postsecondary 
                        education; and
                            ``(ii) the application processes for such 
                        grants, loans, assistance, and scholarships.
                    ``(C) Information about Federal tax credits 
                available for higher education expenses.
                    ``(D) Links to the application for the Free 
                Application for Federal Student Aid described in 
                section 483 and Federal student aid websites.
                    ``(E) A link to the Department's College 
                Affordability and Transparency Center website, 
                including a link to a webpage providing information 
                about net price calculators, or a successor website 
                with similar information.
                    ``(F) Information about fee waivers for 
                applications for institutions of higher education that 
                may be available to qualified students.
                    ``(G) A State-specific section, in which each State 
                educational agency shall include information on State 
                grants for postsecondary education.
            ``(2) Distribution of final form.--The Secretary shall make 
        the final information form described in this subsection 
        available to all State educational agencies that receive a 
        grant under this section.
    ``(i) State Report.--Each State educational agency receiving a 
grant under this section shall use results from the surveys described 
in subsection (f)(4), and other pertinent information, to submit an 
annual report to the Secretary that includes the following:
            ``(1) A description of the delivery method by which the 
        information form was given to students, and a measurement of 
        the reach of such delivery method.
            ``(2) The number of students who report being encouraged to 
        pursue higher education by the activities carried out under the 
        grant program.
            ``(3) A description of the barriers to the effectiveness of 
        the grant program.
            ``(4) An assessment of the cost-effectiveness of the grant 
        program in improving access to higher education.
            ``(5) An identification of outcomes related to 
        postsecondary education attendance, including whether a student 
        who received the information form reported being more likely, 
        as compared to before having received such form--
                    ``(A) to enroll in Advanced Placement, 
                International Baccalaureate, dual enrollment, or early 
                college high school programs;
                    ``(B) in the case of a student in grade 12, to 
                submit an application to an institution of higher 
                education;
                    ``(C) to take the Preliminary SAT/National Merit 
                Scholarship Qualifying Test (PSAT/NMSQT), SAT, or ACT; 
                and
                    ``(D) in the case of a student in grade 12, to file 
                a Free Application for Federal Student Aid described in 
                section 483.
            ``(6) The number of students who received the information 
        form and were in grade 12 in the previous year, disaggregated 
        by race, ethnicity, gender, status as an English language 
        learner, status as an economically disadvantaged individual, 
        and status as an individual with a disability (except that such 
        disaggregation shall not be required in a case in which the 
        results would reveal personally identifiable information about 
        an individual student), who--
                    ``(A) enrolled in an institution of higher 
                education;
                    ``(B) applied for Federal student financial aid; 
                and
                    ``(C) received Federal student financial aid.
            ``(7) A description of the impact of the grant program on 
        the parents of students who received the information form.
    ``(j) Evaluation and Dissemination of Research on Best Practices.--
The Secretary, acting through the Director of the Institute of 
Education Sciences, shall--
            ``(1) develop performance measures, taking into account the 
        elements that are included in the State report described in 
        subsection (i), for grantees to ascertain outcomes and progress 
        related to the grant program;
            ``(2) evaluate the demonstration program, using both 
        quantitative and qualitative methods, to examine the 
        effectiveness of delivery methods used in disseminating the 
        information form to students; and
            ``(3) identify best practices and disseminate research on 
        best practices--
                    ``(A) to State educational agencies, local 
                educational agencies, elementary school and secondary 
                school guidance counselors, and other interested 
                stakeholders; and
                    ``(B) by making such research publicly available on 
                the website of the Institute of Education Sciences.
    ``(k) Implementation.--
            ``(1) In general.--The Secretary shall--
                    ``(A) upon completion of the grant period, use the 
                results of the evaluation described in subsection (j) 
                to work with all State educational agencies and with 
                local educational agencies to use the results of the 
                evaluation described in subsection (j) to disseminate 
                the information form described in subsection (h) to 
                every State educational agency; and
                    ``(B) in cooperation with States, institutions of 
                higher education, organizations involved in college 
                access and student financial aid, employers, and 
                workforce investment boards, make special efforts to 
                provide the information form to individuals who may 
                qualify as independent students, as defined in section 
                480(d).
            ``(2) State educational agencies.--Not later than 1 year 
        after receiving the first information form from the Secretary 
        under paragraph (1), each State educational agency that 
        receives assistance under part A of title I of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
        shall ensure that the information form is distributed to all 
        students in grades 8 through 12 in the State.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 2 succeeding fiscal years.''.

SEC. 405B. AWARENESS OF POSTSECONDARY EDUCATION FINANCING OPTIONS FOR 
              ADULT LEARNERS.

    Subpart 2 of part A of title IV (20 U.S.C. 1070a-11 et seq.), as 
amended by section 405A, is further amended by adding at the end the 
following:

``CHAPTER 4--AWARENESS OF POSTSECONDARY EDUCATION FINANCING OPTIONS FOR 
                             ADULT LEARNERS

``SEC. 405B. AWARENESS OF POSTSECONDARY EDUCATION FINANCING OPTIONS FOR 
              ADULT LEARNERS.

    ``(a) Purpose.--The purpose of this section is to establish a 
demonstration program that explores the effectiveness of notification 
processes for adult students regarding postsecondary financial aid 
options and the cost of postsecondary education.
    ``(b) Grants Authorized; Duration.--
            ``(1) Grants authorized.--From amounts appropriated under 
        subsection (l) and beginning after the first information form 
        described in subsection (h) has been developed, the Secretary 
        is authorized to award grants to 15 States to enable such 
        States to pay the expenses of providing information in a cost-
        effective way to adult students who have received a secondary 
        school diploma or who have been out of secondary school for not 
        less than 3 years, in order to--
                    ``(A) increase adult student awareness of, and 
                access to, postsecondary education; and
                    ``(B) increase the likelihood that adult students 
                will apply for postsecondary financial aid and attend 
                an institution of higher education.
            ``(2) Duration.--A grant awarded under this section shall 
        be awarded for a 3-year period.
    ``(c) State Applications.--
            ``(1) Designation of agency.--In order for a State to apply 
        for a grant under this part, the Governor of the State shall 
        designate one agency as the eligible State agency who will 
        apply for and administer the grant.
            ``(2) Application process.--Each State agency designated 
        under paragraph (1) that desires to participate in the 
        demonstration program under this section shall submit an 
        application to the Secretary at such time and in such manner as 
        the Secretary may require.
            ``(3) Contents.--Each application described in paragraph 
        (2) shall include--
                    ``(A) a commitment to utilize the postsecondary 
                education information form described in subsection (h) 
                (referred to in this section as the `adult information 
                form'), including the provision of State-specific grant 
                aid information, as described in subsection (h)(1)(B);
                    ``(B) a description of how the State plans to 
                disseminate the information form to--
                            ``(i) one-stop centers, as defined in 
                        section 3 of the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3102);
                            ``(ii) offices that provide access to 
                        public benefits at the State and local levels, 
                        including unemployment insurance benefits, 
                        assistance or benefits provided under the State 
                        temporary assistance for needy families program 
                        funded under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.) and 
                        medical assistance provided under the State 
                        Medicaid program established under title XIX of 
                        the Social Security Act (42 U.S.C. 1396 et 
                        seq.);
                            ``(iii) public libraries;
                            ``(iv) 2-year degree-granting institutions 
                        of higher education, including occupational 
                        programs at such institutions;
                            ``(v) adult education providers, which may 
                        include 2-year degree-granting institutions of 
                        higher education or local educational agencies;
                            ``(vi) local boards, as defined in section 
                        3 of Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3102), and community-based programs;
                    ``(C) an assurance that the State will fully 
                cooperate with the ongoing evaluation of the 
                demonstration program; and
                    ``(D) such other information as the Secretary may 
                require.
    ``(d) Selection Considerations.--In selecting States to participate 
in the demonstration program under this section, the Secretary shall 
consider--
            ``(1) the number and quality of State applications 
        received;
            ``(2) the geographic diversity of applicants;
            ``(3)(A) the financial responsibility of the State agency 
        designated by the State to carry out the program;
            ``(B) the administrative capability of such agency; and
            ``(C) such agency's ability to ensure that the activities 
        carried out under the grant program serve the maximum number of 
        adult students in the State.
    ``(e) Selection Priority.--In selecting States to participate in 
the demonstration program under this section, the Secretary shall give 
priority to those States that have a high percentage of adults who are 
unemployed, underemployed, or eligible for benefits under a Federal 
means-tested program.
    ``(f) Activities.--Each State agency receiving a grant under this 
section shall carry out the following activities:
            ``(1) Make the information form available to every one-stop 
        center, adult education program, public library, office that 
        provides access to public benefits, 2-year degree-granting 
        institution of higher education, and community-based program in 
        the State that serves adult students so that such entities can 
        distribute the form to each adult student utilizing services at 
        the entity in the most useful, effective, and relevant modes of 
        communication, including through technology.
            ``(2) Develop a statewide public awareness campaign, using 
        a variety of media, to inform adult students about the value of 
        a postsecondary education, the availability of supports to help 
        them balance work and school, the cost of postsecondary 
        education, and the availability of financial aid.
            ``(3) Ensure that entities serving adult students who 
        receive the information form will participate in the evaluation 
        of the demonstration program, and that data from such entities 
        will be made available in accordance with the requirements of 
        section 444 of the General Education Provisions Act (20 U.S.C. 
        1232) (commonly known as the `Family Educational Rights and 
        Privacy Act of 1974').
            ``(4) Conduct annual surveys of a representative sample of 
        adult students who receive the information form to determine 
        the short-term and long-term effects of the information form, 
        including what those students know about the cost of 
        postsecondary education and financial aid options, the 
        likelihood of such students applying for financial aid, and 
        attending an institution of higher education, and any other 
        information the State agency determines relevant--
                    ``(A) before the receipt of such form; and
                    ``(B) after the receipt of such form.
    ``(g) Development of an Initial Form.--
            ``(1) Initial development.--Not later than 90 days after 
        the date of enactment of this Act, the Secretary, in 
        consultation with the heads of relevant Federal agencies and 
        representatives of college admissions staff, financial aid 
        staff, adult student focus groups (including students from low-
        income families), consumer advocates, and adult education 
        program directors, shall complete the development of an initial 
        model form of postsecondary education information (referred to 
        in this subsection as the `initial form').
            ``(2) Consumer testing process.--The Secretary shall--
                    ``(A) submit the initial form for consumer testing 
                in accordance with section 483C that includes the 
                representatives described in paragraph (1); and
                    ``(B) not later than 60 days after the conclusion 
                of the consumer testing under subparagraph (A), use the 
                results of the consumer testing of the initial form in 
                the development of a final information form described 
                in subsection (h).
    ``(h) Postsecondary Education Information Form.--
            ``(1) In general.--The Secretary shall develop, using the 
        best available evidence and research, an information form that 
        the Secretary shall update annually and distribute to all State 
        agencies that receive a grant under this section. The 
        information form shall contain, at a minimum, the following 
        information:
                    ``(A) The information described in subparagraphs 
                (A) through (F) of section 405A(h)(1).
                    ``(B) A State-specific section, in which each State 
                shall include information on State grants for 
                postsecondary education.
                    ``(C) Information about the--
                            ``(i) individual and societal benefits of 
                        postsecondary education;
                            ``(ii) importance of academic preparation;
                            ``(iii) array of postsecondary options 
                        available to adult students in the State, 
                        including availability of programs that can 
                        help adults balance work and school; and
                            ``(iv) the eligibility of the student for 
                        various Federal and State tax benefits and 
                        public benefits, such as assistance or benefits 
                        provided under the State temporary assistance 
                        for needy families program funded under part A 
                        of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.) and medical assistance 
                        provided under the State Medicaid program 
                        established under title XIX of the Social 
                        Security Act (42 U.S.C. 1396 et seq.).
            ``(2) Distribution of final form.--The Secretary shall make 
        the final information form described in this subsection 
        available to all States agencies that receive a grant under 
        this section.
    ``(i) State Report.--Each State agency receiving a grant under this 
section shall use results from the surveys described in subsection 
(f)(4), and other pertinent information, to submit an annual report to 
the Secretary including the following:
            ``(1) A description of the delivery method by which the 
        information form was given to students, and a measurement of 
        the reach of such delivery method.
            ``(2) The number of students who report being encouraged to 
        pursue postsecondary education by the activities carried out 
        under the grant program.
            ``(3) A description of the barriers to the effectiveness of 
        the grant program.
            ``(4) An assessment of the cost-effectiveness of the grant 
        program in improving access to postsecondary education.
            ``(5) An identification of outcomes related to 
        postsecondary education attendance, including whether a student 
        who received the information form reported being more likely, 
        as compared to before having received such form--
                    ``(A) to submit an application to an institution of 
                higher education;
                    ``(B) to take the SAT or ACT; and
                    ``(C) to file a Free Application for Federal 
                Student Aid described in section 483.
            ``(6) The number of students who received the information 
        form, disaggregated by race, ethnicity, gender, status as an 
        English language learner, status as an economically 
        disadvantaged individual, and status as an individual with a 
        disability, (except that such disaggregation shall not be 
        required in a case in which the results would reveal personally 
        identifiable information about an individual student) who--
                    ``(A) enrolled in an institution of higher 
                education;
                    ``(B) applied for Federal student financial aid; 
                and
                    ``(C) received Federal student financial aid.
            ``(7) A description of the impact of the grant program on 
        the children of students who received the information form.
    ``(j) Evaluation and Dissemination of Research on Best Practices.--
The Secretary, acting through the Director of the Institute of 
Education Sciences, shall--
            ``(1) develop performance measures, taking into account the 
        elements that are included in the State report described in 
        subsection (i), for grantees to ascertain outcomes and progress 
        related to the grant program;
            ``(2) evaluate the demonstration program, using both 
        quantitative and qualitative methods, to examine the 
        effectiveness of delivery methods used in disseminating the 
        information form to students; and
            ``(3) identify best practices and disseminate research on 
        best practices--
                    ``(A) to States, State agencies administering a 
                grant under this section, local educational agencies, 
                community colleges, adult education programs, local 
                workforce development boards, and other interested 
                stakeholders; and
                    ``(B) by making such research publicly available on 
                the website of the Institute of Education Sciences.
    ``(k) Implementation.--
            ``(1) In general.--The Secretary shall--
                    ``(A) upon completion of the grant period, use the 
                results of the evaluation described in subsection (j) 
                to work with all States to use the results of the 
                evaluation described in subsection (j) to disseminate 
                the information form to the most appropriate agency in 
                each State; and
                    ``(B) in cooperation with States, institutions of 
                higher education, organizations involved in 
                postsecondary education access and student financial 
                aid, employers, and workforce development boards, make 
                special efforts to provide the information form to 
                individuals who may qualify as independent students, as 
                defined in section 480(d).
            ``(2) State agencies.--Not later than 1 year after 
        receiving the first information form from the Secretary under 
        paragraph (1), each State that receives assistance under this 
        Act shall ensure that the State agency receiving the 
        information form under paragraph (1)(A) distributes the 
        information form to all adult students, to the maximum extent 
        practicable.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the following 2 fiscal years.''.

      Subpart 3--Federal Supplemental Education Opportunity Grants

SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking 
``2009'' and inserting ``2015''.

SEC. 408. INSTITUTIONAL SHARE OF FEDERAL SUPPLEMENTAL EDUCATIONAL 
              OPPORTUNITY GRANTS.

    Section 413C(a)(2) (20 U.S.C. 1070b-2(a)(2)) is amended by striking 
``75 percent'' and inserting ``50 percent''.

SEC. 409. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS 
              ALLOCATION OF FUNDS.

    Section 413D (20 U.S.C. 1070b-3) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) In general.--From the amount appropriated pursuant to 
        section 413A(b), for each fiscal year, the Secretary shall 
        allocate to each eligible institution an amount equal to not 
        less than 90 percent and not more than 110 percent of the 
        amount that the eligible institution received under this 
        subsection and subsection (b) (as such subsections were in 
        effect with respect to allocations for such fiscal year) for 
        the previous fiscal year for which that institution received 
        funds under this section.
            ``(2) Ratable reduction.--If the amount appropriated for 
        any fiscal year is less than the amount required to be 
        allocated to all institutions under paragraph (1), then the 
        amount of the allocation to each such institution shall be 
        ratably reduced.
            ``(3) No previous allocation.--In the case of an 
        institution that has not received a previous allocation under 
        this section, the Secretary shall allocate funds under this 
        section solely on the basis of the need determination described 
        under subsection (c).''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``To determine 
                the need of an institution's eligible undergraduate 
                students,'' and inserting ``Until such time as the 
                Secretary establishes a revised method to determine the 
                need of an institution's eligible undergraduate 
                students, in accordance with paragraph (5),''; and
                    (B) by adding at the end the following:
            ``(5) Not later than 1 year after the date of enactment of 
        the Higher Education Affordability Act, the Secretary shall 
        establish a revised method for determining the need of an 
        institution's eligible undergraduate students, as described in 
        paragraph (2), which shall take into account the number of low- 
        and moderate-income students that an eligible institution 
        serves. The Secretary shall promulgate any regulations 
        necessary to carry out the revised methods of determining an 
        eligible institution's need under this subsection.''.

           Subpart 4--American Dream Grants and LEAP Program

SEC. 415. PURPOSE; APPROPRIATIONS AUTHORIZED.

    Section 415A (20 U.S.C. 1070c) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1) of subsection (a), by inserting ``to award American dream 
        grants under section 415G and'' before ``to make''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``subpart'' and 
                all that follows through the period at the end and 
                inserting ``subpart (except for section 415F) such sums 
                as may be necessary for fiscal year 2015 and each of 
                the five succeeding fiscal years.''; and
                    (B) by adding at the end the following:
            ``(4) Authorization of appropriations for american dream 
        grants.--There are authorized to be appropriated to carry out 
        section 415F such sums as may be necessary for fiscal year 2015 
        and each of the five succeeding fiscal years.''.

SEC. 416. AMERICAN DREAM GRANTS.

    Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is 
amended--
            (1) by redesignating section 415F as section 415G; and
            (2) by adding at the end the following:

``SEC. 415F. AMERICAN DREAM GRANTS.

    ``(a) Dreamer Students.--
            ``(1) In general.--In this section, the term `Dreamer 
        student' means an individual who--
                    ``(A) was younger than 16 years of age on the date 
                on which the individual initially entered the United 
                States;
                    ``(B) has provided, to the applicable State, a list 
                of each secondary school that the student attended in 
                the United States; and
                    ``(C)(i) has earned a high school diploma or the 
                recognized equivalent of such diploma from a secondary 
                school, has obtained a high school equivalency diploma 
                in the United States, or is scheduled to complete the 
                requirements for such a diploma or equivalent before 
                the next academic year begins;
                    ``(ii) has acquired a degree from an institution of 
                higher education or has completed not less than 2 years 
                in a program for a baccalaureate degree or higher 
                degree at an institution of higher education in the 
                United States and has made satisfactory progress, as 
                defined in section 484(c), in the program of study 
                during such time period; or
                    ``(iii) has served in the uniformed services, as 
                defined in section 101 of title 10, United States Code, 
                for not less than 4 years and, if discharged, received 
                an honorable discharge.
            ``(2) Hardship exception.--The Secretary shall issue 
        regulations that direct when a State shall waive the 
        requirement of subparagraph (A) or (B), or both, of paragraph 
        (1) for an individual to qualify as a Dreamer student under 
        such paragraph, if the individual--
                    ``(A) demonstrates compelling circumstances for the 
                inability to satisfy the requirement of such 
                subparagraph (A) or (B), or both; and
                    ``(B) satisfies the requirement of paragraph 
                (1)(C).
    ``(b) Grants to States.--
            ``(1) Reservation for administration.--From the amounts 
        appropriated to carry out this section for each fiscal year, 
        the Secretary may reserve not more than 1 percent of such 
        amounts to administer this section.
            ``(2) Grants authorized to eligible states.--From the 
        amounts appropriated to carry out this section for each fiscal 
        year and not reserved under paragraph (1), the Secretary shall 
        award grants, through allotments under paragraph (4), to 
        eligible States to enable the eligible States to carry out the 
        activities described in clauses (i) and (ii) of paragraph 
        (3)(A).
            ``(3) Eligible state.--In this section, the term `eligible 
        State' means a State that--
                    ``(A) increases access and affordability to higher 
                education for students by--
                            ``(i) offering in-State tuition for Dreamer 
                        students; or
                            ``(ii) expanding in-State financial aid to 
                        Dreamer students; and
                    ``(B) submits an application to the Secretary that 
                contains an assurance that--
                            ``(i) notwithstanding any other provision 
                        of law, the State will not discriminate in 
                        awarding student financial assistance or 
                        determining who is eligible for in-State 
                        tuition, against a Dreamer student who resides 
                        in the State, if the student otherwise 
                        qualifies for the assistance or tuition; and
                            ``(ii) for fiscal year 2015 and each of the 
                        4 succeeding fiscal years, the State will 
                        maintain State support for public institutions 
                        of higher education located in the State (not 
                        including support for capital projects, 
                        research and development, or tuition and fees 
                        paid by students) at not less than the level of 
                        such support for fiscal year 2013, increased by 
                        a percentage equal to the estimated percentage 
                        increase in the Consumer Price Index (as such 
                        term is defined in section 478(f)) between 
                        December 2013 and the December preceding the 
                        fiscal year for which the determination under 
                        this clause is being made.
            ``(4) Allotments.--The Secretary shall allot the amount 
        appropriated to carry out this section for each fiscal year and 
        not reserved under paragraph (1) among the eligible States in 
        proportion to the number of Dreamer students enrolled at least 
        half-time in postsecondary education who reside in the State 
        for the most recent fiscal year for which satisfactory data are 
        available, compared to the number of such students who reside 
        in all eligible States for such fiscal year.
    ``(c) Supplement Not Supplant.--Grant funds awarded under this 
section shall be used to supplement, and not supplant, non-Federal 
funds that would otherwise be used for activities authorized under this 
section.
    ``(d) Applicability.--The provisions of sections 415B through 415E 
shall not apply to the program authorized by this section.''.

Subpart 5--Reauthorization of Appropriations for Other Part A Programs.

SEC. 417. REAUTHORIZATION OF APPROPRIATIONS FOR OTHER PART A PROGRAMS.

    (a) Special Programs for Students Whose Families Are Engaged in 
Migrant and Seasonal Farmwork.--Section 418A(i) (20 U.S.C. 1070d-2(i)) 
is amended by striking ``$75,000,000'' and all that follows through the 
period at the end and inserting ``such sums as may be necessary for 
fiscal year 2015 and each of the five succeeding fiscal years.''.
    (b) Robert C. Byrd Honors Scholarship Program.--Section 419K (20 
U.S.C. 1070d-41) is amended by striking ``2009'' and inserting 
``2015''.
    (c) Child Care Access Means Parents in School.--Section 419N(g) (20 
U.S.C. 1070e(g)) is amended by striking ``2009'' and inserting 
``2015''.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. SIMPLIFICATION OF INCOME-BASED REPAYMENT OPTIONS FOR 
              FEDERALLY INSURED STUDENT LOANS.

    (a) Amendment Replacing Income-Sensitive Replacement.--Section 
427(a)(2)(H) (20 U.S.C. 1077(a)(2)(H)) is amended--
            (1) by striking ``graduated or income-sensitive repayment 
        schedule'' and inserting ``graduated repayment schedule or 
        income-based repayment schedule under section 493C''; and
            (2) by striking ``in accordance with the regulations of the 
        Secretary'' and inserting ``in accordance with section 493C and 
        regulations issued by the Secretary''.
    (b) Effective Date Relating to Termination of Income-Sensitive 
Repayment.--The amendments made by subsection (a) shall take effect on 
the date that is 1 year after the date of enactment of this Act.

SEC. 422. IMPROVEMENTS TO MILITARY LOAN DEFERMENT; CLARIFICATION OF 
              SCRA PROTECTIONS; SIMPLIFICATION OF INCOME-BASED 
              REPAYMENT OPTIONS.

    (a) Amendments.--Section 428 (20 U.S.C. 1078) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (D), by striking ``may, 
                        following a default by the borrower, be subject 
                        to income contingent repayment in accordance 
                        with subsection (m)'' and inserting ``may, 
                        following a default by the borrower, be subject 
                        to income-based repayment in accordance with 
                        subsection (m) and section 493C(d)'';
                            (ii) in subparagraph (E)(i), by striking 
                        ``standard, graduated'' and all that follows 
                        and inserting ``standard, graduated, income-
                        based, or extended repayment schedule (as 
                        described in paragraph (9)), established by the 
                        lender in accordance with the regulations of 
                        the Secretary''; and
                            (iii) in subparagraph (M)--
                                    (I) by redesignating clause (iv) as 
                                clause (v);
                                    (II) in clause (iii), by striking 
                                ``the borrower--'' and all that follows 
                                through ``described in subclause (I) or 
                                (II); or'' and inserting ``the borrower 
                                is performing eligible military 
                                service, and for the 180-day period 
                                following the demobilization date for 
                                such eligible military service;''; and
                                    (III) by inserting after clause 
                                (iii) the following:
                            ``(iv) not in excess of 180 days after the 
                        effective movement date listed on the military 
                        orders of a borrower's spouse if that spouse is 
                        a member of the Armed Forces who has received 
                        military orders for a permanent change of 
                        station; or''; and
                    (B) in paragraph (9)(A)(iii), by inserting ``and an 
                income-sensitive repayment plan shall be available only 
                for borrowers who have selected or been required to use 
                such a plan before the date that is 1 year after the 
                date of enactment of the Higher Education Affordability 
                Act'' before the semicolon at the end;
            (2) in subsection (d), by striking ``section 207 of the 
        Servicemembers Civil Relief Act (50 U.S.C. App. 527)'' and 
        inserting ``the Servicemembers Civil Relief Act (50 U.S.C. App. 
        501 et seq.)''; and
            (3) by striking subsection (m) and inserting the following:
    ``(m) Income-Based Repayment.--
            ``(1) Authority of secretary to require.--The Secretary may 
        require borrowers who have defaulted on loans made under this 
        part that are assigned to the Secretary under subsection (c)(8) 
        to repay those loans under an income-based repayment plan, 
        under terms and conditions established by the Secretary that 
        are the same, or similar to, the terms and conditions 
        established under such section.
            ``(2) Loans for which income-based repayment may be 
        required.--A loan made under this part may be required to be 
        repaid under this subsection if the note or other evidence of 
        the loan has been assigned to the Secretary pursuant to 
        subsection (c)(8).''.
    (b) Rulemaking Regarding Termination of Income Contingent and 
Income-Sensitive Repayment Plans.--By not later than 1 year after the 
date of enactment of this Act, the Secretary of Education shall 
promulgate a final rule ending all eligibility for income contingent 
and income-sensitive repayment plans for loans made under part B or D 
of title IV of the Higher Education Act of 1965 unless the borrowers 
have selected, and remained continuously enrolled in, such payment 
plans before the date that is 1 year after the date of enactment of 
this Act, in accordance with the amendments made by this Act.
    (c) Effective Date Regarding Income Contingent and Income-Sensitive 
Repayment Plans.--The amendments made by clauses (i) and (ii) of 
subparagraph (A), and subparagraph (B), of paragraph (1), and by 
paragraph (3), of subsection (a) shall take effect on the date that is 
1 year after the date of enactment of this Act.

SEC. 423. SIMPLIFICATION OF INCOME-BASED REPAYMENT OPTIONS FOR FEDERAL 
              CONSOLIDATION LOANS.

    (a) Amendments.--Section 428C of such Act (20 U.S.C. 1078-3) is 
amended--
            (1) by striking subclause (V) of subsection (a)(3)(B)(i) 
        and inserting the following:
                    ``(V) an individual may obtain a subsequent 
                consolidation loan under section 455(g) only--
                            ``(aa) for the purposes of obtaining 
                        income-based repayment under section 493C, and 
                        only if the loan has been submitted to the 
                        guaranty agency for default aversion or if the 
                        loan is already in default;
                            ``(bb) for the purposes of using the public 
                        service loan forgiveness program under section 
                        455(m); or
                            ``(cc) for the purpose of using the no 
                        accrual of interest for active duty service 
                        members benefit offered under section 
                        455(o).'';
            (2) in subsection (b)--
                    (A) by striking subparagraph (E) of paragraph (1) 
                and inserting the following:
                    ``(E) that the lender shall--
                            ``(i) offer an income-based repayment 
                        schedule, established by the lender in 
                        accordance with section 493C and regulations 
                        promulgated by the Secretary, to the borrower 
                        of any consolidation loan made by the lender on 
                        or after July 1, 1994, and before July 1, 2010; 
                        and
                            ``(ii) only in the case of any borrower who 
                        has selected, before the date that is 1 year 
                        after the date of enactment of the Higher 
                        Education Affordability Act, an income-
                        sensitive repayment schedule, in accordance 
                        with regulations promulgated by the Secretary 
                        and as in effect on the day before the date 
                        that is 1 year before such date of enactment, 
                        continue to offer such borrower the income-
                        sensitive repayment schedule until the borrower 
                        selects an alternative repayment schedule;''; 
                        and
                    (B) in paragraph (5), by inserting ``(if such 
                borrower has selected an income contingent repayment 
                schedule before the date that is 1 year after the date 
                of enactment of the Higher Education Affordability 
                Act)'' after ``income contingent repayment under part D 
                of this title''; and
            (3) in subsection (c)--
                    (A) in the matter preceding clause (i) of paragraph 
                (2)(A), by inserting ``, except that an income-
                sensitive repayment schedule shall only be available to 
                borrowers who have selected such schedule before the 
                date that is 1 year after the date of enactment of the 
                Higher Education Affordability Act'' after 
                ``regulations of the Secretary''; and
                    (B) in paragraph (3)(B), by inserting ``for 
                borrowers who have selected income contingent repayment 
                before the date that is 1 year after the date of 
                enactment of the Higher Education Affordability Act'' 
                after ``subsection (b)(5)''.
    (b) Effective Date for Termination of Income-Sensitive or Income 
Contingent Repayment Plans.--The amendments made by subsection (a) 
shall take effect on the date that is 1 year after the date of 
enactment of this Act.

SEC. 424. REASONABLE COLLECTION COSTS AND REHABILITATION PAYMENTS.

    Section 428F (20 U.S.C. 1078-6) is amended--
            (1) in subsection (a)--
                    (A) by striking item (aa) of paragraph 
                (1)(D)(i)(II) and inserting the following:
                                            ``(aa) charge to the 
                                        borrower an amount that is 
                                        reasonable and that does not 
                                        exceed the bona fide collection 
                                        costs associated with such loan 
                                        that are actually incurred in 
                                        collecting the debt against the 
                                        borrower, which amount shall 
                                        not exceed 16 percent of the 
                                        outstanding principal and 
                                        interest at the time of the 
                                        loan sale; and''; and
                    (B) by striking paragraph (5); and
            (2) by adding at the end the following:
    ``(d) Determination of Reasonable and Affordable.--
            ``(1) In general.--For purposes of this section, a monthly 
        payment shall be reasonable and affordable based upon the 
        borrower's total financial circumstances if the payment is the 
        equivalent of a monthly payment amount determined for a 
        borrower under the income-based repayment plan under section 
        493C, except that in no cases shall the monthly payment under 
        this section be less than $5.
            ``(2) Appeals process.--The Secretary shall establish a 
        clear and accessible process for appealing the monthly payment 
        amount determined as reasonable and affordable under this 
        section in any case where a borrower believes that the 
        borrower's monthly payment amount is incorrect, or that the 
        amount calculated for the borrower under paragraph (1) is based 
        on incorrect information or is unreasonable based on the 
        borrower's total circumstances.''.

SEC. 425. FFEL LOAN FORGIVENESS FOR CERTAIN AMERICAN INDIAN EDUCATORS.

    Section 428J(c) (20 U.S.C. 1078-10(c)) is amended by adding at the 
end the following:
            ``(4) American indian teachers in local educational 
        agencies with a high percentage of american indian students.--
        Notwithstanding the amount specified in paragraph (1) and the 
        requirements under subparagraphs (A) and (B) of subsection 
        (b)(1), the aggregate amount that the Secretary shall repay 
        under this section shall be not more than $17,500 in the case 
        of a borrower who--
                    ``(A) has been employed as a full-time teacher for 
                5 consecutive complete school years in a local 
                educational agency described in section 7112(b) of the 
                Elementary and Secondary Education Act of 1965 or in a 
                school operated or funded by the Bureau of Indian 
                Education; and
                    ``(B) is a member of an Indian tribe (as defined in 
                section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b)).''.

SEC. 426. REAUTHORIZATION OF APPROPRIATIONS FOR CERTAIN LOAN 
              FORGIVENESS PROGRAMS.

    (a) Loan Forgiveness for Service in Areas of National Needs.--
Section 428K(h) (20 U.S.C. 1078-11(h)) is amended by striking ``2009'' 
and inserting ``2015''.
    (b) Loan Repayment for Civil Legal Assistance Attorneys.--Section 
428L(i) (20 U.S.C. 1078-11(i)) is amended by striking ``$10,000,000'' 
and all that follows through the period at the end and inserting ``such 
sums as may be necessary for fiscal year 2015 and each of the five 
succeeding fiscal years.''.

SEC. 427. IMPROVEMENTS TO CREDIT REPORTING FOR FEDERAL STUDENT LOANS.

    Section 430A (20 U.S.C. 1080A) is amended--
            (1) by redesignating subsections (d) through (f) as 
        subsections (e) through (g), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Treatment of Rehabilitation and Income-Based Repayment and 
Income Contingent Repayment Plans.--
            ``(1) Necessary steps.--The Secretary and each guaranty 
        agency, eligible lender, and subsequent holder of a loan shall 
        take all necessary steps to ensure that information furnished 
        under this section about a loan covered by Federal loan 
        insurance pursuant to this part or covered by a guaranty 
        agreement pursuant to section 428, or a loan made under part D, 
        is reported in a manner that reflects the unique attributes of 
        a Federal student loan under this title. The necessary steps 
        required shall include--
                    ``(A) furnishing consumer reporting agencies with 
                information about a loan's delinquency, default, post-
                default performance, rehabilitation, and post-
                rehabilitation performance, as applicable, in a manner 
                that ensures the entire loan history is reported as a 
                single open account for the duration of the borrower's 
                financial obligation;
                    ``(B) reporting a payment as paid as agreed if the 
                payment made--
                            ``(i) satisfies the terms of the borrower's 
                        income-based repayment plan under section 493C 
                        or any income contingent repayment plan 
                        authorized under section 455(e); or
                            ``(ii) is a reasonable and affordable 
                        payment made by a borrower subject to section 
                        428F that meet the requirements of such 
                        section; and
                    ``(C) for purposes of payments under an income-
                based repayment plan under section 493C or any income 
                contingent repayment plan authorized under section 
                455(e), any additional steps that the Secretary 
                determines necessary, through rulemaking or published 
                guidance, based on the results of the study performed 
                under section 1018 of the Higher Education 
                Affordability Act.
            ``(2) Application to agents and contractors.--The 
        requirements of paragraph (1) shall apply to any person 
        furnishing information about loan performance on behalf of the 
        Secretary, a guaranty agency, eligible lender, or subsequent 
        holder of a loan, including third party student loan servicers 
        or collectors.''.

SEC. 428. REDUCED DUPLICATION IN STUDENT LOAN SERVICING.

    Section 432(l)(4) (20 U.S.C. 1082(l)(4)) is amended by striking 
``simplifying and standardizing'' and inserting ``simplifying, 
standardizing, and reducing duplication in''.

SEC. 429. IMPROVED DETERMINATION OF COHORT DEFAULT RATES; PUBLICATION 
              OF DEFAULT PREVENTION PLAN.

    Section 435 (20 U.S.C. 1085) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by adding at the end the 
                following:
            ``(E) In any case where the Secretary has determined that 
        the institution has engaged in default manipulation, the 
        Secretary--
                    ``(i) shall recalculate the cohort default rate for 
                the institution under this section using corrected data 
                and information, for all fiscal years for which the 
                default manipulation has occurred; and
                    ``(ii) using the recalculated cohort default rate, 
                shall redetermine under subsection (a)(2) whether the 
                institution is ineligible to participate in a program 
                under this title.''; and
                    (B) in paragraph (7)(A), by adding at the end the 
                following:
                            ``(iii) Summary of default prevention 
                        plan.--Upon receiving technical assistance from 
                        the Secretary under clause (ii), each 
                        institution subject to this subparagraph 
                        shall--
                                    ``(I) prepare a summary of the plan 
                                described under clause (i) that is 
                                directed to a student audience;
                                    ``(II) make the summary publicly 
                                available; and
                                    ``(III) provide the summary to 
                                students at the institution.''; and
            (2) in subsection (m)(3), by striking ``through the use 
        of'' and all that follows through the period at the end and 
        inserting ``through default manipulation.''.

SEC. 430. IMPROVED DISABILITY DETERMINATIONS.

    (a) In General.--Section 437(a) (20 U.S.C. 1087(a)) is amended--
            (1) in the matter preceding subparagraph (A) of paragraph 
        (1), by striking ``Notwithstanding any other provision of this 
        subsection,'' and inserting ``Except as provided in paragraph 
        (4),'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Service-connected disability determinations.--
                    ``(A) In general.--A borrower who has been 
                determined by the Secretary of Veterans Affairs or 
                Secretary of Defense to be unemployable due to a 
                service-connected condition and who provides 
                documentation of such determination to the Secretary of 
                Education, shall be considered permanently and totally 
                disabled for the purpose of discharging such borrower's 
                loans under this subsection, and such borrower shall 
                not be required to present additional documentation for 
                purposes of this subsection.
                    ``(B) Determination by the secretary of veterans 
                affairs or the secretary of defense.--
                            ``(i) In general.--A borrower who has been 
                        assigned a disability rating of 100 percent (or 
                        a combination of ratings equaling 100 percent 
                        or more) by the Secretary of Veterans Affairs 
                        or the Secretary of Defense for a service-
                        connected disability (as defined in section 101 
                        of title 38, United States Code) and who 
                        provides documentation of such rating to the 
                        Secretary of Education, shall be considered 
                        permanently and totally disabled for the 
                        purpose of discharging such borrower's loans 
                        under this subsection, and such borrower shall 
                        not be required to present any additional 
                        documentation for purposes of this subsection.
                            ``(ii) Rating of disability.--A disability 
                        rating described in clause (i), or similar 
                        determination of unemployability by the 
                        Secretary of Veterans Affairs or the Secretary 
                        of Defense, transmitted in accordance with 
                        clause (iii) shall be considered sufficient 
                        documentation for purposes of this subsection.
                            ``(iii) Transfer of information.--Not later 
                        than 180 days after the date of enactment of 
                        the Higher Education Affordability Act, the 
                        Secretary, in coordination with the Secretary 
                        of Defense and the Secretary of Veteran 
                        Affairs, shall create a system through which 
                        the applicable disability ratings (or 
                        alternative means of transmitting a 
                        determination of unemployability) shall be 
                        automatically transmitted from the Department 
                        of Defense or the Department of Veterans 
                        Affairs, as the case may be, to the Department 
                        of Education and shall satisfy the 
                        documentation requirement described in this 
                        subparagraph. The Secretary shall have the 
                        authority to enter into any agreements 
                        necessary to implement the requirements of this 
                        subparagraph.
            ``(3) Disability determinations by the social security 
        administration.--A borrower who has been determined by the 
        Social Security Administration to be disabled with medical 
        improvement not expected and who provides documentation of such 
        determination to the Secretary of Education, shall be 
        considered permanently and totally disabled for the purpose of 
        discharging such borrower's loans under this subsection, and 
        such borrower shall not be required to present additional 
        documentation for purposes of this subsection.
            ``(4) Reinstatement provisions.--A borrower of a loan that 
        is discharged under paragraph (2) or (3) shall not be subject 
        to the reinstatement provisions described in paragraph (1).
            ``(5) Data collection and report to congress.--
                    ``(A) Data collection.--The Secretary shall 
                annually collect data about borrowers applying for, and 
                borrowers receiving, loan discharges under this 
                subsection, which shall include the following:
                            ``(i) Data regarding--
                                    ``(I) the number of applications 
                                received under this subsection;
                                    ``(II) the number of such 
                                applications that were approved; and
                                    ``(III) the number of loan 
                                discharges that were completed under 
                                this subsection.
                            ``(ii) A summary of the reasons why the 
                        Secretary reinstated the obligation of, and 
                        resumed collection on, loans discharged under 
                        this subsection.
                            ``(iii) The data described in subclauses 
                        (I) through (III) of clause (i), and clause 
                        (ii), for each of the following:
                                    ``(I) Borrowers applying for, and 
                                borrowers receiving, loan discharges 
                                under paragraph (2)(A).
                                    ``(II) Borrowers applying for, and 
                                borrowers receiving, loan discharges 
                                under paragraph (2)(B).
                                    ``(III) Borrowers applying for, and 
                                borrowers receiving, loan discharges 
                                under paragraph (3).
                            ``(iv) Any other information the Secretary 
                        determines is necessary.
                    ``(B) Report.--The Secretary shall annually report 
                to Congress, and make publicly available, the 
                information described in subparagraph (A).''.
    (b) Reports.--
            (1) Plan.--Not later than 90 days after the date of the 
        enactment of this Act, the Secretary of Education shall submit 
        to the appropriate committees of Congress a report that 
        includes a plan to carry out the activities described under 
        section 437(a)(2)(B)(iii) of the Higher Education Act of 1965 
        (20 U.S.C. 1087(a)(2)(B)(iii)), as amended by this section.
            (2) Follow-up report.--If the Secretary of Education has 
        not carried out the activities described under section 
        437(a)(2)(B)(iii) of the Higher Education Act of 1965, as 
        amended by this section, by the date that is 1 year after the 
        date of enactment of this Act, the Secretary of Education shall 
        submit to the appropriate committees of Congress, by such date, 
        a report that includes an explanation of why those activities 
        have not been implemented.

SEC. 431. TREATMENT OF BORROWERS FALSELY CERTIFIED AS ELIGIBLE TO 
              BORROW DUE TO IDENTITY THEFT.

    Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended by striking 
``of a crime''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) (42 U.S.C. 2751(b)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 442. FEDERAL WORK STUDY ALLOCATION OF FUNDS.

    Section 442 (42 U.S.C. 2752) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) In general.--From the amount appropriated pursuant to 
        section 441(b), for each fiscal year, the Secretary shall 
        allocate to each eligible institution an amount equal to not 
        less than 90 percent and not more than 110 percent of the 
        amount that the eligible institution received under this 
        subsection and subsection (b) (as such subsections were in 
        effect with respect to allocations for such fiscal year) for 
        the previous fiscal year for which that institution received 
        funds under this section.
            ``(2) Ratable reduction.--If the amount appropriated for 
        any fiscal year is less than the amount required to be 
        allocated to all institutions under paragraph (1), then the 
        amount of the allocation to each such institution shall be 
        ratably reduced.
            ``(3) No previous allocation.--In the case of an 
        institution that has not received a previous allocation under 
        this section, the Secretary shall allocate funds under this 
        section solely on the basis of the self-help need determination 
        described under subsection (c).''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``To determine 
                the self-help need of an institution's eligible 
                undergraduate students,'' and inserting ``Until such 
                time as the Secretary establishes a revised method to 
                determine the self-help need of an institution's 
                eligible undergraduate students, in accordance with 
                paragraph (5),'';
                    (B) in paragraph (3), by striking ``To determine 
                the self-help need of an institution's eligible 
                graduate and professional students,'' and inserting 
                ``Until such time as the Secretary establishes a 
                revised method to determine the self-help need of an 
                institution's eligible graduate and professional 
                students, in accordance with paragraph (5),''; and
                    (C) by adding at the end the following:
            ``(5) Not later than 1 year after the date of enactment of 
        the Higher Education Affordability Act, the Secretary shall 
        establish revised methods for determining the self-help need of 
        an institution's eligible undergraduate students, as described 
        in paragraph (2), and eligible graduate and professional 
        students, as described in paragraph (3), which shall take into 
        account the number of low- and moderate-income students that an 
        eligible institution serves. The Secretary shall promulgate any 
        regulations necessary to carry out the revised methods of 
        determining an eligible institution's self-help need under this 
        subsection.''.

SEC. 443. INSTITUTIONAL SHARE OF FEDERAL WORK STUDY FUNDS.

    Section 443(b)(5) (42 U.S.C. 2753(b)(5)) is amended by striking 
``75 percent'' and inserting ``50 percent'' each place the term 
appears.

SEC. 444. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK-STUDY 
              PROGRAMS.

    Section 447(b)(4) (42 U.S.C. 2756a(b)(4)) is amended by striking 
``2009'' and inserting ``2015''.

SEC. 445. WORK COLLEGES.

    Section 448(f) (42 U.S.C. 2756b(f)) is amended by striking ``2009'' 
and inserting ``2015''.

                  PART D--FEDERAL DIRECT LOAN PROGRAM

SEC. 451. ELIMINATION OF ORIGINATION FEES AND OTHER AMENDMENTS TO TERMS 
              AND CONDITIONS OF LOANS.

    (a) Amendments.--Section 455 (20 U.S.C. 1087e) is amended--
            (1) by repealing subsection (c);
            (2) in subsection (d)--
                    (A) in paragraph (1)(D), by inserting ``or to any 
                borrower who has not selected the income contingent 
                repayment plan before the date that is 1 year after the 
                date of enactment of the Higher Education Affordability 
                Act'' before the semicolon at the end; and
                    (B) in paragraph (5)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) pay collection costs in an amount that is 
                reasonable and that does not exceed the bona fide 
                collection costs associated with such student loan that 
                are actually incurred in collecting the debt against 
                the borrower; and''; and
                            (ii) in subparagraph (B), by striking 
                        ``income contingent repayment plan'' and 
                        inserting ``income-based repayment plan, as 
                        provided in 493C'';
            (3) in subsection (e)--
                    (A) in paragraph (1), by striking ``The Secretary 
                may'' and inserting ``With respect to borrowers who 
                have selected, or been required to use, an income 
                contingent repayment plan before the date that is 1 
                year after the date of enactment of the Higher 
                Education Affordability Act, the Secretary may'';
                    (B) in paragraph (3), by inserting ``before the 
                date that is 1 year after the date of enactment of the 
                Higher Education Affordability Act'' after ``income 
                contingent repayment'';
                    (C) by striking paragraph (6); and
                    (D) by redesignating paragraph (7) as paragraph 
                (6);
            (4) in subsection (f)(2)--
                    (A) in subparagraph (C), by striking ``the 
                borrower--'' and all that follows through ``described 
                in clause (i) or (ii); or'' and inserting ``the 
                borrower is performing eligible military service, and 
                for the 180-day period following the demobilization 
                date for such eligible military service;'';
                    (B) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) any period not in excess of 180 days after 
                the effective movement date listed on the military 
                orders of a borrower's spouse if that spouse is a 
                member of the Armed Forces who has received military 
                orders for a permanent change of station; or'';
            (5) by striking subsection (h) and inserting the following:
    ``(h) Borrower Claims and Defenses.--
            ``(1) In general.--Notwithstanding any other provision of 
        State or Federal law, a borrower, regardless of the account 
        status of the borrower's loan, may assert as an affirmative 
        claim or defense against repayment, any act or omission of an 
        institution of higher education attended by the borrower that 
        would give rise to a cause of action against the institution 
        under this Act, other Federal law, or applicable State law, 
        except that in no event may a borrower recover from the 
        Secretary, in any action arising from or relating to a loan 
        made under this part, an amount in excess of the amount such 
        borrower has repaid on such loan.
            ``(2) Exercise by secretary.--The Secretary may elect to 
        carry out the authority under this subsection on behalf of a 
        group of multiple borrowers if the Secretary determines that 
        the group has been harmed by the same act, omission, or 
        practice.'';
            (6) in subsection (m)--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (B) by inserting after paragraph (2) the following:
            ``(3) Lump sum payment.--For purposes of this subsection, 
        if a borrower has enrolled in a repayment plan described in 
        paragraph (1)(A) and makes a lump sum payment through a student 
        loan repayment program under section 2171 of title 10, United 
        States Code, or a similarly structured eligible repayment 
        program (as determined by the Secretary), the Secretary will 
        treat the borrower as having made a number of qualifying 
        payments equal to the lesser of--
                    ``(A) the number, rounded to the nearest whole 
                number, equal to the quotient of--
                            ``(i) such lump sum payment; divided by
                            ``(ii) the monthly payment amount that the 
                        borrower would have otherwise made under the 
                        repayment plan described in paragraph (1)(A) 
                        selected by the borrower; or
                    ``(B) 12 payments.''; and
            (7) in subsection (o)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--Notwithstanding any other provision of 
        this part and in accordance with paragraphs (2) and (4), the 
        Secretary shall not charge interest on a loan made to a 
        borrower under this part for which the first disbursement is 
        made on or after October 1, 2008, during the period in which a 
        borrower who is performing eligible military service is serving 
        in an area of hostilities in which service qualifies for 
        special pay under section 310 of title 37, United States 
        Code.'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Implementation of accrual of interest provision for 
        members of the armed forces.--
                    ``(A) In general.--The Secretary of Education shall 
                enter into any necessary agreements, including 
                agreements with the Commissioner of the Internal 
                Revenue Service and the Secretary of Defense--
                            ``(i) to ensure that interest does not 
                        accrue for eligible military borrowers, in 
                        accordance with this subsection; and
                            ``(ii) to obtain or provide any information 
                        necessary to implement clause (i) without 
                        requiring a request from the borrower.
                    ``(B) Reports.--
                            ``(i) Plan.--Not later than 90 days after 
                        the date of enactment of the Higher Education 
                        Affordability Act, the Secretary shall submit 
                        to the appropriate committees of Congress a 
                        report that includes a plan to implement the 
                        accrual of interest provision described in 
                        subparagraph (A).
                            ``(ii) Follow-up report.--If the Secretary 
                        has not implemented the accrual of interest 
                        provision described in subparagraph (A) by the 
                        date that is 1 year after the date of enactment 
                        of the Higher Education Affordability Act, the 
                        Secretary shall submit, by such date, a report 
                        that includes an explanation of why such 
                        provision has not been implemented.''; and
                    (C) in paragraph (4), by striking ``who qualifies 
                as an eligible military borrower under this 
                subsection'' and inserting ``described in paragraph 
                (1)''.
    (b) Effective Dates.--
            (1) Repeal of loan fees.--The amendment made by subsection 
        (a)(1) 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 made 
        under such part, the application is received, on or after July 
        1, 2014.
            (2) Terminating income contingent repayment.--The 
        amendments made by subparagraphs (A) and (B)(ii) of paragraph 
        (2), and paragraph (3), of subsection (a) shall take effect on 
        the date that is 1 year after the date of enactment of this 
        Act.

SEC. 452. IMPROVED STUDENT LOAN SERVICING AND DEBT COLLECTION 
              PRACTICES.

    (a) Amendments.--Section 456 (20 U.S.C. 1087f) is amended by adding 
at the end the following:
    ``(c) Limitation on Contracts for the Servicing of Loans.--
            ``(1) In general.--A contract entered into under this 
        section for the servicing of loans made or purchased under this 
        part shall include--
                    ``(A) a provision that prohibits the servicer from 
                marketing to a borrower of a loan which the servicer 
                services, a financial product or service while the 
                borrower is enrolled in an institution of higher 
                education;
                    ``(B) a provision that, after the borrower is no 
                longer enrolled in an institution of higher education, 
                the servicer may only market a financial product or 
                service to the borrower through an opt-in rather than 
                an opt-out system; and
                    ``(C) a provision that, to the extent practicable, 
                the servicer shall clearly disclose in any written 
                material or correspondence sent or made available to 
                the borrower (including correspondence and disclosures 
                on the website of the servicer) that the material or 
                correspondence is in relation to a Department of 
                Education loan.
            ``(2) No predispute arbitration clauses.--A contract 
        entered into under this section for the servicing of loans made 
        or purchased under this part shall include a provision that any 
        rights and remedies available to borrowers against the servicer 
        may not be waived by any agreement, policy, or form, including 
        by a predispute arbitration agreement.
    ``(d) Study of Direct Loan Debt Collection.--
            ``(1) In general.--The Secretary shall conduct a study to 
        determine whether it is efficient and effective to contract 
        with private entities under this section for the collection of 
        loans made or purchased under this part that are in default.
            ``(2) Evaluation method.--For purposes of the study 
        described in paragraph (1), the Secretary shall evaluate 
        efficiency and effectiveness in terms of--
                    ``(A) the cost incurred by the Federal Government 
                for the collections of defaulted loans under this part 
                through contracts under this section, and such cost in 
                comparison with the costs of other methods by which 
                debt owed to the Federal Government are collected or 
                recovered, including the collection of any unpaid 
                Federal income taxes;
                    ``(B) the consumer protections provided to the 
                borrower who has defaulted on a loan under this part 
                through the collections process;
                    ``(C) the impact of the collections process for 
                defaulted loans under this part on the integrity of the 
                loan program carried out under this part; and
                    ``(D) borrower experience, as determined through 
                borrower surveys.
            ``(3) Recovery costs.--
                    ``(A) In general.--As part of the study conducted 
                under this subsection, the Secretary shall calculate 
                the average recovery cost, per dollar recovered, 
                through the collection of defaulted loans made under 
                this part, in the aggregate for all borrowers of 
                defaulted loans and disaggregated for the following 
                categories of borrowers of defaulted loans:
                            ``(i) Veterans with a service-connected 
                        disability (as defined in section 101 of title 
                        38, United States Code).
                            ``(ii) Individuals who are entitled to 
                        benefits under section 223 of the Social 
                        Security Act (42 U.S.C. 423).
                            ``(iii) Individuals who are allowed an 
                        earned income tax credit pursuant to section 32 
                        of the Internal Revenue Code of 1986.
                            ``(iv) Recipients of assistance under the 
                        supplemental nutrition assistance program 
                        established under the Food and Nutrition Act of 
                        2008 (7 U.S.C. 2011 et seq.).
                    ``(B) Consultation.--The Secretary shall consult 
                with the Secretary of the Treasury, the Administrator 
                of the Social Security Administration, the Secretary of 
                Veterans Affairs, and the Secretary of Agriculture, as 
                appropriate, in order to identify individuals in the 
                categories described in clauses (i) through (iv) of 
                subparagraph (A) and to calculate the average recovery 
                cost per dollar recovered for each category of 
                borrowers.
            ``(4) Additional information regarding costs.--The 
        Secretary may directly carry out collection activities for a 
        subset of defaulted loans under this part, instead of awarding 
        contracts under subsection (b)(2) for such activities, if the 
        Secretary determines it would better inform the study required 
        under paragraph (1).
            ``(5) Report.--By not later than the date that is 1 year 
        after the date of enactment of the Higher Education 
        Affordability Act, the Secretary shall prepare and submit to 
        the authorizing committees a report that includes the findings 
        of the study conducted under paragraph (1).
    ``(e) Certification Necessary for Continued Private Debt 
Collections.--
            ``(1) Certification.--Not later than 1 year after the date 
        of enactment of the Higher Education Affordability Act, the 
        Secretary shall submit to the authorizing committees, and make 
        available to the public--
                    ``(A) a certification that the Secretary has 
                determined, based on the results of the study conducted 
                under subsection (d), that--
                            ``(i) the use of private entities for the 
                        collection of defaulted loans made or purchased 
                        under this part is necessary to maintain the 
                        integrity of the loan program carried out under 
                        this part;
                            ``(ii) the collection costs paid to such 
                        private entities under the contracts authorized 
                        by this section, in the aggregate and for each 
                        category of borrowers described in subsection 
                        (d)(3)(A), are reasonable; and
                            ``(iii) expending funds for such collection 
                        costs is in the best financial interest of the 
                        United States; or
                    ``(B) a notification that the Secretary will not 
                issue the certification described in subparagraph (A).
            ``(2) Prohibition of contracts for private debt collections 
        without certification.--Notwithstanding subsection (b)(2), 
        beginning on the date that is 1 year after the date of 
        enactment of the Higher Education Affordability Act, the 
        Secretary shall not enter into any contract with a private 
        entity under this section for the collection of defaulted loans 
        made or purchased under this part if the Secretary did not 
        issue the certification described in paragraph (1)(A) by such 
        date.
    ``(f) Termination of Contracts.--
            ``(1) Termination.--The Secretary shall terminate any 
        contract with an entity for the collection of defaulted loans 
        made or purchased under this part if the entity, an affiliate 
        of that entity, or a service provider of the entity is found to 
        have committed a violation of--
                    ``(A) the prohibition on unfair, deceptive, or 
                abusive acts or practices under section 1031 of the 
                Consumer Financial Protection Act of 2010 (12 U.S.C. 
                5531), including the regulations promulgated under such 
                section, relating to the services performed pursuant to 
                a contract under this section; or
                    ``(B) the Fair Debt Collection Practices Act (15 
                U.S.C. 1692 et seq.), including the regulations 
                promulgated under such Act, relating to the services 
                performed pursuant to a contract under this section.
            ``(2) Prohibition on additional contracts.--If the 
        Secretary terminates a contract with an entity under paragraph 
        (1), such entity--
                    ``(A) shall not be eligible to participate in the 
                next award cycle for contracts relating to the 
                collection of defaulted loans made or purchased under 
                this part that follows the date of termination of the 
                contract; and
                    ``(B) shall not be eligible to receive any new 
                contract relating to the collection of such defaulted 
                loans during the 2-year period beginning on the date of 
                termination.
            ``(3) Identification of other violations.--
                    ``(A) In general.--In any case where the Secretary 
                obtains evidence that any person or entity has engaged 
                in debt collection practices described in paragraph (1) 
                that may constitute a violation of Federal law, the 
                Secretary shall transmit such evidence to the Director 
                of the Bureau of Consumer Financial Protection for 
                further proceedings under the appropriate law.
                    ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed to affect any other 
                authority provided to the Secretary to disclose 
                information to a Federal agency.''.
    (b) Study and Report on Specialty Servicing Contracts.--
            (1) In general.--The Secretary of Education, in 
        consultation with the Director of the Bureau of Consumer 
        Financial Protection and the Secretary of the Treasury, shall--
                    (A) conduct a study as to whether specialty 
                servicing contracts in the Federal Direct Loan Program 
                under part D of title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1087a et seq.) could better serve 
                varying segments of student loan borrowers, and, in 
                particular, the unique needs of borrowers in 
                delinquency or experiencing partial financial hardship 
                and the allocation of servicer resources to assist such 
                borrower segment; and
                    (B) not later than 180 days after the date of 
                enactment of this Act, submit a report to the Committee 
                on Health, Education, Labor, and Pensions and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate, and the Committee on Education and the 
                Workforce and the Committee on Financial Services of 
                the House of Representatives, on the study described in 
                subparagraph (A).
            (2) Specialty servicing contract.--In this subsection, the 
        term ``specialty servicing contract'' means a contract--
                    (A) entered into pursuant to section 456 of the 
                Higher Education Act of 1965 (20 U.S.C. 1087f) for the 
                servicing of loans made or purchased under part D of 
                title IV of such Act (20 U.S.C. 1087a et seq.) that 
                provides for servicing loans for a distinct and 
                specified subset of borrowers; and
                    (B) that may be compensated at a greater level for 
                such services, as determined appropriate by the 
                Secretary of Education.
    (c) Report on Servicer Compensation.--
            (1) In general.--The Secretary of Education, in 
        consultation with the Director of the Bureau of Consumer 
        Financial Protection and the Secretary of the Treasury, shall 
        conduct a report--
                    (A) on the compensation and incentive structure for 
                servicers of loans made, insured, or guaranteed under 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070 et seq.) and whether servicers adequately 
                encourage repayment, as well as the use of alternative 
                repayment options and discharge where appropriate; and
                    (B) that includes an analysis of the criteria 
                utilized by the Department of Education in determining 
                performance-based allocation of account volume in 
                entering into contracts for servicing of loans made or 
                purchased under part D of title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1087a et seq.), and 
                the effectiveness of those metrics in promoting 
                repayment.
            (2) Comments from the public.--In conducting the report 
        under paragraph (1), the Secretary of Education, in 
        consultation with the Director of the Bureau of Consumer 
        Financial Protection and the Secretary of the Treasury, shall 
        seek and take comments from the public.
            (3) Procedures to implement recommendations.--If the report 
        conducted under paragraph (1) includes recommendations on 
        measures to improve the incentive structure, the report shall 
        also include the procedures to implement such recommendations.
            (4) Publication.--The report conducted under paragraph (1) 
        shall be published not later than 180 days after the date of 
        enactment of this Act.
    (d) Report and Plan on FFEL Servicing.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Education, in 
        consultation with the Director of the Bureau of Consumer 
        Financial Protection and the Secretary of the Treasury, shall 
        publish a report that identifies whether the public has 
        adequate visibility into the market of loan servicing under 
        part B of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1071 et seq.) to adequately assess the performance of 
        such servicing under such part, including--
                    (A) the utilization of alternative repayment plans;
                    (B) the distribution of delinquent and defaulted 
                loan balances; and
                    (C) loan performance by institution type.
            (2) Plan.--If the Secretary of Education, in consultation 
        with the Director of the Bureau of Consumer Financial 
        Protection and the Secretary of the Treasury, determines that 
        the public does not have enough visibility into the market of 
        loan servicing, as described in paragraph (1), the Secretary of 
        Education, in consultation with the Director of the Bureau of 
        Consumer Financial Protection and the Secretary of the 
        Treasury, shall establish a plan to disclose such information 
        necessary to provide for such visibility.
    (e) Report on Servicing Challenges.--The Secretary of Education 
shall periodically issue a report, at times determined appropriate by 
the Secretary, about the challenges borrowers face in the servicing of 
their student loans, impediments to the efficient and effective 
servicing of loans under title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.), and any changes, including protections for 
consumers, that should be considered to improve postsecondary education 
loan servicing for all borrowers, servicers, taxpayers, and the 
Department of Education.

SEC. 453. FUNDS FOR ADMINISTRATIVE EXPENSES.

    Section 458(a) (20 U.S.C. 1087h(a)) is amended--
            (1) in paragraph (3)--
                    (A) in the paragraph heading, by striking ``2007 
                through 2014'' and inserting ``2015 through 2020''; and
                    (B) by striking ``2007 through 2014'' and inserting 
                ``2015 through 2020'';
            (2) in paragraph (4), by striking ``2007 through 2014'' and 
        inserting ``2015 through 2020''; and
            (3) in paragraph (5), by striking ``paragraph (3)'' and 
        inserting ``paragraph (4)''.

SEC. 454. FEDERAL DIRECT LOAN FORGIVENESS FOR CERTAIN AMERICAN INDIAN 
              EDUCATORS.

    Section 460(c) (20 U.S.C. 1087j(c)) is amended by adding at the end 
the following:
            ``(4) American indian teachers in local educational 
        agencies with a high percentage of american indian students.--
        Notwithstanding the amount specified in paragraph (1) and the 
        requirements under subparagraphs (A) and (B) of subsection 
        (b)(1), the aggregate amount that the Secretary shall cancel 
        under this section shall be not more than $17,500 in the case 
        of a borrower who--
                    ``(A) has been employed as a full-time teacher for 
                5 consecutive complete school years in a local 
                educational agency described in section 7112(b) of the 
                Elementary and Secondary Education Act of 1965 or in a 
                school operated or funded by the Bureau of Indian 
                Education; and
                    ``(B) is a member of an Indian tribe (as defined in 
                section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b)).''.

                     PART E--FEDERAL PERKINS LOANS

SEC. 461. APPROPRIATIONS AUTHORIZED.

    Section 461(b) (20 U.S.C. 1087aa) is amended--
            (1) in paragraph (1), by striking ``$300,000,000'' and all 
        that follows through the period at the end and by inserting 
        ``such sums as may be necessary for fiscal year 2015 and each 
        of the five succeeding fiscal years.''; and
            (2) in paragraph (2), by striking ``2015'' each place the 
        term appears and inserting ``2021''.

SEC. 462. PERKINS ALLOCATION OF FUNDS.

    Section 462 (20 U.S.C. 1087bb) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) In general.--From the amount appropriated pursuant to 
        section 461(b), for each fiscal year, the Secretary shall 
        allocate to each eligible institution an amount equal to not 
        less than 90 percent and not more than 110 percent of the 
        amount that the eligible institution received under this 
        subsection and subsection (b) (as such subsections were in 
        effect with respect to allocations for such fiscal year) for 
        the previous fiscal year for which that institution received 
        funds under this section.
            ``(2) Ratable reduction.--If the amount appropriated for 
        any fiscal year is less than the amount required to be 
        allocated to all institutions under paragraph (1), then the 
        amount of the allocation to each such institution shall be 
        ratably reduced.
            ``(3) No previous allocation.--In the case of an 
        institution that has not received a previous allocation under 
        this section, the Secretary shall allocate funds under this 
        section solely on the basis of the self-help need determination 
        described under subsection (c).''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``To determine 
                the self-help need of an institution's eligible 
                undergraduate students,'' and inserting ``Until such 
                time as the Secretary establishes a revised method to 
                determine the self-help need of an institution's 
                eligible undergraduate students, in accordance with 
                paragraph (5),'';
                    (B) in paragraph (3), by striking ``To determine 
                the self-help need of an institution's eligible 
                graduate and professional students,'' and inserting 
                ``Until such time as the Secretary establishes a 
                revised method to determine the self-help need of an 
                institution's eligible graduate and professional 
                students, in accordance with paragraph (5),''; and
                    (C) by adding at the end the following:
            ``(5) Not later than 1 year after the date of enactment of 
        the Higher Education Affordability Act, the Secretary shall 
        establish revised methods for determining the self-help need of 
        an institution's eligible undergraduate students, as described 
        in paragraph (2), and eligible graduate and professional 
        students, as described in paragraph (3), which shall take into 
        account the number of low- and moderate-income students that an 
        eligible institution serves. The Secretary shall promulgate any 
        regulations necessary to carry out the revised methods of 
        determining an eligible institution's self-help need under this 
        subsection.''.

SEC. 463. INSTITUTIONAL CONTRIBUTIONS FOR PERKINS.

    Section 463(a)(2)(B) (20 U.S.C. 1087cc(a)(2)(B)) is amended by 
striking ``one-third of the Federal capital contributions'' and 
inserting ``50 percent of the Federal capital contributions''.

SEC. 464. SIMPLIFICATION OF MILITARY DEFERMENT ELIGIBILITY.

    Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A)) is amended--
            (1) by redesignating clauses (iv) and (v) as clauses (v) 
        and (vi), respectively;
            (2) in clause (iii), by striking ``the borrower--'' and all 
        that follows through ``described in subclause (I) or (II);'' 
        and inserting ``during which the borrower is performing 
        eligible military service, and for the 180-day period following 
        the demobilization date for such eligible military service;''; 
        and
            (3) by inserting after clause (iii) the following:
                    ``(iv) not in excess of 180 days after the 
                effective movement date listed on the military orders 
                of a borrower's spouse if that spouse is a member of 
                the Armed Forces who has received military orders for a 
                permanent change of station; or''.

SEC. 465. FORGIVENESS OF LOANS FOR ELIGIBLE MILITARY SERVICE.

    Section 465(a)(2)(D) (20 U.S.C. 1087ee(a)(2)(D)) is amended by 
striking ``qualifies for special pay under section 310 of title 37, 
United States Code, as an area of hostilities'' and inserting ``is 
eligible military service''.

SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

    Section 466(b) (20 U.S.C. 1087ff(b)) is amended by striking 
``October 1, 2012'' and inserting ``October 1, 2021''.

                         PART F--NEED ANALYSIS

SEC. 471. INCREASED INCOME PROTECTION ALLOWANCE FOR DEPENDENT STUDENTS.

    (a) Amendment.--Section 475(g)(2)(D) (20 U.S.C. 1087oo(g)(2)(D)) is 
amended to read as follows:
                    ``(D) an income protection allowance (or a 
                successor amount prescribed by the Secretary under 
                section 478) of $8,451 for academic year 2015-2016;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on July 1, 2015.

SEC. 472. INCREASED INCOME PROTECTION ALLOWANCE FOR INDEPENDENT 
              STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE.

    (a) Amendment.--Section 476(b)(1)(A)(iv) (20 U.S.C. 
1087pp(b)(1)(A)(iv)) is amended to read as follows:
                            ``(iv) an income protection allowance (or a 
                        successor amount prescribed by the Secretary 
                        under section 478)--
                                    ``(I) for single or separated 
                                students, or married students where 
                                both are enrolled pursuant to 
                                subsection (a)(2), of $13,135 for 
                                academic year 2015-2016; and
                                    ``(II) for married students where 1 
                                is enrolled pursuant to subsection 
                                (a)(2), of $21,060 for academic year 
                                2015-2016;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on July 1, 2015.

SEC. 473. INCREASED INCOME PROTECTION ALLOWANCE FOR INDEPENDENT 
              STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE.

    (a) Amendment.--Section 477(b)(4) of the Higher Education Act of 
1965 (20 U.S.C. 1087qq(b)(4)) is amended to read as follows:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478), for 
        academic year 2015-2016:

                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
  Family  Size                                          Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                     For each
   (including           1               2               3               4               5           additional
    student)                                                                                        subtract:
----------------------------------------------------------------------------------------------------------------
      2              $33,277         $27,580                                                           $4,250
      3               41,431          35,761         $30,078
      4               51,151          45,481          39,825         $34,114
      5               60,358          54,661          49,005          43,321         $37,665
      6               70,591          64,908          59,265          53,554          47,898
For each
additional
   add:                6,000                                                                              ''.
----------------------------------------------------------------------------------------------------------------

    (b) Effective Date.--The amendment made by this section shall take 
effect on July 1, 2015.

SEC. 474. UPDATED TABLES AND AMOUNTS FOR INCOME PROTECTION ALLOWANCE.

    (a) Amendments.--Section 478(b) of the Higher Education Act of 1965 
(20 U.S.C. 1087rr(b)) is amended--
            (1) in paragraph (1), by striking subparagraphs (A) and (B) 
        and inserting the following:
                    ``(A) In general.--For each academic year after 
                academic year 2015-2016, the Secretary shall publish in 
                the Federal Register a revised table of income 
                protection allowances for the purpose of sections 
                475(c)(4) and 477(b)(4), subject to subparagraphs (B) 
                and (C).
                    ``(B) Table for independent students.--For each 
                academic year after academic year 2015-2016, the 
                Secretary shall develop the revised table of income 
                protection allowances by increasing each of the dollar 
                amounts contained in the table of income protection 
                allowances under section 477(b)(4)(D) by a percentage 
                equal to the estimated percentage increase in the 
                Consumer Price Index (as determined by the Secretary) 
                between December 2014 and the December next preceding 
                the beginning of such academic year, and rounding the 
                result to the nearest $10.''; and
            (2) in paragraph (2), by striking ``shall be developed'' 
        and all that follows through the period at the end and 
        inserting ``shall be developed for each academic year after 
        academic year 2015-2016, by increasing each of the dollar 
        amounts contained in such section for academic year 2015-2016 
        by a percentage equal to the estimated percentage increase in 
        the Consumer Price Index (as determined by the Secretary) 
        between December 2014 and the December next preceding the 
        beginning of such academic year, and rounding the result to the 
        nearest $10.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on July 1, 2015.

SEC. 475. PRIOR PRIOR YEAR; DEFINITION OF INDEPENDENT STUDENT.

    Section 480 (20 U.S.C. 1087) is amended--
            (1) by striking subparagraph (B) of subsection (a)(1) and 
        inserting the following:
    ``(B) Notwithstanding section 478(a) and beginning not later than 
180 days after the date of enactment of the Higher Education 
Affordability Act, the Secretary shall provide for the use of data from 
the second preceding tax year when and to the extent necessary to carry 
out the simplification of applications (including simplification for a 
subset of applications) used for the estimation and determination of 
financial aid eligibility. Such simplification shall include the 
sharing of data between the Internal Revenue Service and the 
Department, pursuant to the consent of the taxpayer.'';
            (2) in subsection (d)--
                    (A) in paragraph (1)(H)--
                            (i) in the matter preceding clause (i), by 
                        striking ``during the school year in which the 
                        application is submitted as either an 
                        unaccompanied youth'' and inserting ``as either 
                        an unaccompanied youth age 23 or younger who 
                        is'';
                            (ii) in clause (i), by inserting ``, or a 
                        designee of the liaison'' after ``Act''; and
                            (iii) in clause (ii), by striking ``a 
                        program funded under the Runaway and Homeless 
                        Youth Act'' and inserting ``an emergency or 
                        transitional shelter, street outreach program, 
                        homeless youth drop-in center, or other program 
                        serving homeless youth,''; and
                    (B) by adding at the end the following:
            ``(3) Simplifying the determination process for 
        unaccompanied youth.--
                    ``(A) Verification.--A financial aid administrator 
                is not required to verify homelessness determinations 
                made by the individuals authorized to make such 
                determinations under clause (i), (ii), or (iii) of 
                paragraph (1)(H) in the absence of conflicting 
                information. A documented phone call with, or a written 
                statement from, one of the authorized individuals is 
                sufficient verification when needed.
                    ``(B) Determination of independence.--A financial 
                aid administrator shall conduct the verification under 
                paragraph (1)(H) if a student does not have, and cannot 
                get, documentation from any of the individuals 
                authorized to make such determinations under clause 
                (i), (ii), or (iii) of paragraph (1)(H). The financial 
                aid administrator shall make the determination of 
                independence based on the determination of a student as 
                an unaccompanied youth who is a homeless child or youth 
                (as such terms are defined in section 725 of the 
                McKinney-Vento Homeless Assistance Act), or as 
                unaccompanied, at risk of homelessness, and self-
                supporting, which--
                            ``(i) shall be distinct from a 
                        determination of independence described under 
                        paragraph (1)(I); and
                            ``(ii) may be based on a documented 
                        interview with the student if there is no 
                        written documentation available.
                    ``(C) Duration of determination.--A student shall 
                receive a determination under paragraph (1)(H) during 
                the school year in which the student initially submits 
                the application. If a student is determined to be 
                independent under paragraph (1)(H), the student shall 
                be presumed to be independent in subsequent years 
                unless--
                            ``(i) the student informs the financial aid 
                        office that circumstances have changed; or
                            ``(ii) the financial aid administrator has 
                        specific conflicting information about the 
                        student's independence.''; and
            (3) by striking paragraph (5) of subsection (e) and 
        inserting the following:
            ``(5) payments made and services provided under part E of 
        title IV of the Social Security Act, including the value of 
        vouchers for education and training made available under 
        section 477 of such Act, and any payments made directly to 
        youth as part of an extended foster care program pursuant to 
        such part E; and''.

                       PART G--GENERAL PROVISIONS

SEC. 481. DEFINITIONS.

    Section 481 (20 U.S.C. 1088) is amended--
            (1) by striking subsection (d);
            (2) in the subsection heading of subsection (f), by 
        striking ``Definition of'';
            (3) by redesignating subsections (b), (c), (e), and (f) as 
        subsections (f), (m), (c), and (d), respectively, and 
        transferring such subsections to be in alphabetical order based 
        on subsection designation;
            (4) by inserting after subsection (a) the following:
    ``(b) Commission, Bonus, or Other Incentive Payment.--For purposes 
of this title, the term `commission, bonus, or other incentive payment' 
means a sum of money or something of value, other than a fixed salary 
or wages, paid to or given to a person or an entity for services 
rendered.'';
            (5) by inserting after subsection (d), as redesignated and 
        transferred by paragraph (3), the following:
    ``(e) Eligible Military Service.--
            ``(1) In general.--The term `eligible military service'--
                    ``(A) in the case of a member of a regular 
                component of the Armed Forces, means full-time duty in 
                the Armed Forces, other than active duty for training 
                (as defined in section 101 of title 38, United States 
                Code) of 30 days or less;
                    ``(B) in the case of a member of the reserve 
                components of the Armed Forces, means service on active 
                duty under a call or order to active duty under--
                            ``(i) section 688, 12302, 12304, or 12322 
                        of title 10, United States Code;
                            ``(ii) subsection (a), (d), or (g) of 
                        section 12301 of title 10, United States Code; 
                        or
                            ``(iii) section 712 of title 14, United 
                        States Code;
                    ``(C) in the case of a member of the Army National 
                Guard of the United States or Air National Guard of the 
                United States, means, in addition to service described 
                in subparagraph (B), full-time service--
                            ``(i) in the National Guard of a State for 
                        the purpose of organizing, administering, 
                        recruiting, instructing, or training the 
                        National Guard; or
                            ``(ii) in the National Guard under section 
                        502(f) of title 32, United States Code, when 
                        authorized by the President or the Secretary of 
                        Defense for the purpose of responding to a 
                        national emergency declared by the President 
                        and supported by Federal funds; and
                    ``(D) in the case of a servicemember who is a 
                commissioned officer of the Public Health Service or 
                the National Oceanic and Atmospheric Administration, 
                active service.
            ``(2) Exclusions.--The term `eligible military service' 
        does not include any period during which an individual--
                    ``(A) was assigned full-time by the Armed Forces to 
                a civilian institution for a course of education that 
                was substantially the same as established courses 
                offered to civilians;
                    ``(B) serves as a cadet or midshipman at one of the 
                military service academies of the United States; or
                    ``(C) serves under the provisions of section 
                12103(d) of title 10, United States Code, pursuant to 
                an enlistment in the Army National Guard or the Air 
                National Guard, or as a Reserve for service in the Army 
                Reserve, Navy Reserve, Air Force Reserve, Marine Corps 
                Reserve, or Coast Guard Reserve.'';
            (6) by inserting after subsection (f), as redesignated and 
        transferred by paragraph (3), the following:
    ``(g) Institution Affiliate.--For purposes of this title, the term 
`institution affiliate' means any person or entity that controls, is 
controlled by, or is under common control with, an institution of 
higher education.
    ``(h) Military Orders.--For purposes of this title, the term 
`military orders', when used with respect to a member of the Armed 
Forces, means official military orders, or any notification, 
certification, or verification from the member's commanding officer, 
with respect to the member's current or future military duty status.
    ``(i) Revenue-Sharing Arrangement.--For purposes of this title, the 
term `revenue-sharing arrangement' means an arrangement between an 
institution of higher education and third party under which--
            ``(1) the third party provides, exclusively or 
        nonexclusively, educational products or services to prospective 
        students or students attending the institution of higher 
        education; and
            ``(2) the third party or institution of higher education 
        pays a fee or provides other material benefits, including 
        revenue- or profit-sharing, to the institution of higher 
        education or third party in connection with the educational 
        products or services provided to prospective students or 
        students attending the institution of higher education.
    ``(j) Securing Enrollments or Securing or Awarding Financial Aid.--
            ``(1) In general.--For purposes of this title, the term 
        `securing enrollments or securing or awarding financial aid'--
                    ``(A) means any activity carried out by a person or 
                entity for the purpose of the admission or 
                matriculation of a student to an institution of higher 
                education or the award of financial aid to a student 
                that occurs at any time until the student has completed 
                the student's educational program at an institution;
                    ``(B) includes contact in any form with a 
                prospective student, such as contact through 
                preadmission or advising activities, scheduling an 
                appointment to visit the enrollment office or any other 
                office of the institution, attendance at such an 
                appointment, or involvement in a prospective student's 
                signing of an enrollment agreement or financial aid 
                application; and
                    ``(C) does not include making a payment to a third 
                party for the provision of student contact information 
                for prospective students, as long as such payment is 
                not based on--
                            ``(i) any additional conduct or action by 
                        the third party or any prospective student, 
                        such as participation in preadmission or 
                        advising activities, scheduling an appointment 
                        to visit the enrollment office or any other 
                        office of the institution or attendance at such 
                        an appointment, or the signing, or being 
                        involved in the signing, of a prospective 
                        student's enrollment agreement or financial aid 
                        application; or
                            ``(ii) the number of students (calculated 
                        at any point in time of an educational program) 
                        who apply for enrollment, are awarded financial 
                        aid, or are enrolled for any period of time, 
                        including through completion of an educational 
                        program.
    ``(k) Service Provider.--For purposes of this title, the term 
`service provider' means any State, person, or entity that enters into 
a contract with an eligible institution to administer any aspect of the 
institution's participation in any program under this title, 
including--
            ``(1) securing enrollments or securing or awarding 
        financial aid;
            ``(2) student performance in educational coursework;
            ``(3) student graduation;
            ``(4) job placement of students; or
            ``(5) any other academic facet of a student's enrollment in 
        an institution of higher education.
    ``(l) Student Default Risk.--For purposes of this title, the term 
`student default risk' means a risk that is reflected as a percentage 
that is calculated by taking an institution's 3-year cohort default 
rate, as defined in section 435(m), for the most recent fiscal year 
available, and multiplying it by the percentage of students enrolled at 
such institution receiving a Federal student loan authorized under this 
title during the previous academic year.''.

SEC. 482. STANDARD NOTIFICATION FORMAT FOR DELINQUENT BORROWERS; 
              EXPLANATION OF BENEFITS OF FEDERAL LOANS.

    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 483 the following:

``SEC. 483A. STANDARD NOTIFICATION FORMAT FOR DELINQUENT BORROWERS; 
              EXPLANATION OF BENEFITS OF FEDERAL LOANS.

    ``(a) Standard Notification Format for Delinquent Borrowers.--
            ``(1) In general.--The Secretary, in consultation with the 
        Director of the Bureau of Consumer Financial Protection, shall 
        develop and submit for consumer testing in accordance with 
        section 483C, a standard format to be used to notify, by 
        writing and by telephone, any borrower who is delinquent, or at 
        risk of becoming delinquent, on loans made, insured, or 
        guaranteed under part B or D of the borrower's repayment 
        options, including deferment, forbearance, the income-based 
        repayment plan available under section 493C, loan forgiveness 
        opportunities, and, if applicable, the possibility for loan 
        discharge.
            ``(2) Contents.--To the extent practicable, the information 
        provided through the standard format to borrowers described in 
        paragraph (1) shall include all terms, conditions, fees, and 
        costs associated with the available repayment plans in a format 
        that allows the borrower to compare the borrower's current 
        repayment plan with the alternatives.
    ``(b) Explanation of the Benefits of Federal Loans.--The Secretary, 
in consultation with the Director of the Bureau of Consumer Financial 
Protection, shall prepare and make available to eligible institutions, 
for disclosure in accordance with section 485(l)(2)(L)(ii), a written 
explanation of the benefits that are unique to Federal student loans 
(including repayment plans, loan forgiveness, and loan deferment) and a 
description of the loan terms that borrowers should examine carefully 
if considering a private education loan.''.

SEC. 483. INSTITUTIONAL FINANCIAL AID AWARD LETTER.

    (a) In General.--Part G of title IV (20 U.S.C. 1088 et seq.) is 
further amended by inserting after section 483A, as added by section 
482, the following:

``SEC. 483B. INSTITUTIONAL FINANCIAL AID AWARD LETTERS.

    ``(a) Standard Format.--The Secretary, in consultation with the 
heads of relevant Federal agencies, shall develop a standard format for 
financial aid award letters based on recommendations from 
representatives of students, students' families, institutions of higher 
education, secondary school and postsecondary education counselors, and 
nonprofit consumer groups.
    ``(b) Key Required Contents for Financial Aid Award Letters.--The 
standard format developed under subsection (a) shall include, in a 
consumer-friendly manner that is simple and understandable, the 
following items clearly separated from each other and listed on the 
first page of the financial aid award letter in either electronic or 
written format:
            ``(1) Information on the student's cost of attendance based 
        on the most current costs for the academic period covered by 
        the financial aid award letter, including the following 
        expenses (as determined under section 472):
                    ``(A) Tuition and fees.
                    ``(B) Room and board costs.
                    ``(C) Books and supplies.
                    ``(D) Transportation.
                    ``(E) Miscellaneous personal expenses.
            ``(2)(A) The amount of financial aid that the student would 
        not have to repay, such as scholarships, grant aid offered 
        under this title, or grant aid offered by the institution, a 
        State, or an outside source to the student for such academic 
        period;
            ``(B) a disclosure that such financial aid does not have to 
        be repaid and whether the student can expect to receive similar 
        amounts of such financial aid for each academic period the 
        student is enrolled at the institution; and
            ``(C) in the case of any institution that has a policy or 
        practice of front-loading grant aid, a disclosure of that 
        practice and that the student may receive less grant aid in 
        future academic terms.
            ``(3) The net price that the student, or the student's 
        family on behalf of the student, will have to pay for the 
        student to attend the institution for such academic period, 
        equal to the difference between--
                    ``(A) the cost of attendance as described in 
                paragraph (1) for the student for such academic period; 
                and
                    ``(B) the amount of financial aid described in 
                paragraph (2) that is included in the financial aid 
                award letter.
            ``(4) The amount of work study assistance, including such 
        assistance available under part C, the likelihood of finding 
        employment opportunities on campus, and a disclosure that the 
        aid must be earned by the student and the assistance offered is 
        subject to the availability of employment opportunities.
            ``(5) The types and amounts of loans under part D or E that 
        the institution recommends for the student for such academic 
        period, including--
                    ``(A) a disclosure that such loans have to be 
                repaid;
                    ``(B) a disclosure that the student can borrow a 
                lesser amount than the recommended loan amount;
                    ``(C) a clear use of the word `loan' to describe 
                the recommended loan amounts;
                    ``(D) personalized information showing estimates of 
                the borrower's anticipated monthly payments and the 
                difference in total interest paid and total payments 
                under each plan;
                    ``(E) a disclosure that Federal loans cannot be 
                discharged in bankruptcy except in cases of extreme or 
                undue hardship; and
                    ``(F) a disclosure that the student may be eligible 
                for longer repayment terms, such as extended or income-
                based repayment plans, and that longer repayment terms 
                may result in the student paying more money over the 
                life of the loans.
            ``(6) 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's website on financial aid.
            ``(7) A disclosure that Federal student loans offer 
        generally more favorable terms and beneficial repayment options 
        than private education loans so students should examine 
        available Federal student loan options before applying for 
        private education loans, and an explanation to be written by 
        the Secretary, in consultation with the heads of relevant 
        Federal agencies of--
                    ``(A) the benefits unique to Federal student loans, 
                including various repayment plans, loan forgiveness, 
                and loan deferment; and
                    ``(B) the loan terms and conditions to examine 
                carefully, if considering a private education loan.
            ``(8) The deadline and summary of the process, if any, for 
        accepting the financial aid offered in the financial aid award 
        letter.
            ``(9) The academic period covered by the financial aid 
        award letter and a clear indication whether the aid offered is 
        based on full-time or part-time enrollment.
            ``(10) With respect to institutions where more than 30 
        percent of enrolled students borrow loans to pay for their 
        education, the institution's most recent cohort default rate, 
        as defined in section 435(m), compared to the most recent 
        national average cohort default rate.
            ``(11) Any other information the Secretary, in consultation 
        with the heads of relevant Federal agencies, determines 
        necessary so that students and parents can make informed loan 
        borrowing decisions, including quality metrics such as 
        percentage of students at the institution who take out student 
        loans and average debt at graduation for students at the 
        institution.
    ``(c) Other Required Contents for the Financial Aid Award Letter.--
The standard format for a financial aid award letter developed under 
subsection (a) shall also include the following information, in a 
concise format determined by the Secretary, in consultation with the 
heads of relevant Federal agencies:
            ``(1) A concise summary of the terms and conditions of 
        financial aid recommended under paragraphs (2), (4), and (5) of 
        subsection (b), and a method to provide students with 
        additional information about such terms and conditions, such as 
        links to the supplementary information.
            ``(2) At the institution's discretion, additional options 
        for paying for the net price amount listed in subsection 
        (b)(3), such as the amount recommended to be paid by the 
        student or student's family, Federal Direct PLUS Loans, or 
        private education loans. If the institution recommends private 
        education loans, the financial aid award letter shall contain 
        the additional following general disclosures:
                    ``(A) The availability of, and the student's 
                potential eligibility for, additional Federal financial 
                assistance under this title.
                    ``(B) The impact of a proposed private education 
                loan on the student's potential eligibility for other 
                financial assistance, including Federal financial 
                assistance under this title.
                    ``(C) The student's ability to select a private 
                educational lender of the student's choice.
                    ``(D) The student's right to accept or reject a 
                private education loan within the 30-day period 
                following a private educational lender's approval of a 
                student's application and a student's 3-day right-to-
                cancel period.
                    ``(E) With respect to dependent students, any 
                reference to private education loans shall be 
                accompanied by information about the recommended family 
                contribution and the availability of, and terms and 
                conditions associated with, Federal Direct PLUS Loans 
                for the student's parents regardless of family income, 
                and of the student's increased eligibility for Federal 
                student loans under this title if the student's parents 
                are not able to borrow under the Federal Direct PLUS 
                Loan program.
            ``(3) The following disclosures:
                    ``(A) That the financial aid award letter only 
                contains information for 1 academic period and the 
                financial aid offered in following academic periods may 
                change, unless the institution is offering aid that 
                covers multiple academic periods.
                    ``(B) How non-institutional scholarships awarded to 
                the student affect the financial aid package offered to 
                the student.
                    ``(C) A concise summary of any Federal or 
                institutional conditions required to receive and renew 
                financial aid and a method to provide students with 
                additional information about these conditions, such as 
                links to the supplementary information.
    ``(d) Additional Requirements for Financial Aid Award Letter.--In 
addition to the requirements listed under subsections (b) and (c), the 
financial aid award letter shall meet the following requirements:
            ``(1) Clearly distinguish between the aid offered under 
        paragraphs (2), (4), and (5) 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 definitions and names for the terms 
        described in subsection (b) that are developed by the Secretary 
        in consultation with the heads of relevant Federal agencies, 
        representatives of institutions of higher education, nonprofit 
        consumer groups, students, and secondary school and higher 
        education guidance counselors, not later than 3 months after 
        the date of enactment of the Higher Education Affordability 
        Act.
            ``(3) If an institution's recommended Federal student loan 
        aid offered under subsection (b)(5) is less than the maximum 
        amount of Federal assistance available to the student under 
        parts D and E, provide additional information on Federal 
        student loans, including the types and amounts for which the 
        student is eligible in an attached document or webpage.
            ``(4) Use standard formatting and design to ensure--
                    ``(A) that figures described in paragraphs (1) 
                through (5) of subsection (b) are in the same font, 
                appear in the same order, and are displayed prominently 
                on the first page of the financial aid award letter 
                whether produced in written or electronic format; and
                    ``(B) that the other information required in 
                subsections (b) and (c) appears in a standard format 
                and design on the financial aid award letter.
            ``(5) Include an attestation that the student has accessed 
        and read the financial aid award letter, if provided to the 
        student in electronic format.
            ``(6) Include language developed by the Secretary, in 
        consultation with the heads of relevant Federal agencies, 
        notifying eligible students that they may be eligible for 
        education benefits, and where they can locate more information 
        about such benefits, described in the following provisions:
                    ``(A) Chapter 30, 31, 32, 33, 34, or 35 of title 
                38, United States Code.
                    ``(B) Chapter 101, 105, 106A, 1606, 1607, or 1608 
                of title 10, United States Code.
                    ``(C) Section 1784a, 2005, or 2007 of title 10, 
                United States Code.
    ``(e) Additional Information.--Nothing in this section shall 
preclude an institution from supplementing the financial aid award 
letter with additional information as long as such additional 
information supplements the financial aid award letter and is not 
located on the financial aid award letter, except as provided in 
subsection (c)(2).
    ``(f) Consumer Testing.--The financial aid award letter under this 
section shall undergo consumer testing in accordance with section 483C. 
The Secretary, in consultation with the heads of relevant Federal 
agencies, representatives of institutions of higher education, 
nonprofit consumer groups, students, and secondary school and higher 
education guidance counselors, shall develop multiple designs and 
formatting, subject to the requirements of subsection (d)(4), of the 
financial aid award letter to be used for consumer testing not later 
than 6 months after the date of enactment of the Higher Education 
Affordability Act.''.
    (b) Conforming Amendment.--Section 484 of the Higher Education 
Opportunity Act (20 U.S.C. 1092 note) is repealed.

SEC. 483A. CONSUMER TESTING.

    Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by 
inserting after section 483B, as added by section 483, the following:

``SEC. 483C. CONSUMER TESTING.

    ``(a) Establishment of Consumer Testing Process.--Not later than 6 
months after the date of enactment of the Higher Education 
Affordability Act, and every 5 years thereafter, the Secretary shall 
establish, in consultation with the heads of relevant Federal agencies, 
a process for consumer testing each of the following:
            ``(1) The universal net price calculator established under 
        section 132(h)(7).
            ``(2) The College Scorecard established under section 133.
            ``(3) The initial model form of postsecondary education 
        information required under section 405A(g) for the initial 
        consumer testing, and the postsecondary education information 
        form under section 405A(h) for all subsequent consumer testing.
            ``(4) The initial model form of postsecondary education 
        information required under section 405B(g) for the initial 
        consumer testing, and the postsecondary education information 
        form under section 405B(h) for all subsequent consumer testing.
            ``(5) The master promissory note.
            ``(6) The standard notification format for borrowers who 
        are delinquent or at risk of being delinquent under section 
        483A.
            ``(7) The institutional financial aid award letter required 
        under section 483B.
            ``(8) The methodology for comparing institutions based on 
        the speed-based repayment rate under section 483D(c)(4)(A).
            ``(9) Online entrance, exit, and interim loan counseling 
        tools, including the Department of Education's Financial 
        Awareness Counseling Tool and other online tools that may be 
        used, and any disclosures that may be provided, during the 
        counseling that is required under subsections (b), (l), and (n) 
        of section 485.
            ``(10) The personalized periodic statement required for 
        borrowers who are automatically enrolled into an income-based 
        repayment plan under section 493C(d)(1)(D).
            ``(11) Any consent form or any online tool required for 
        consent of borrowers with $0 payment under paragraph 
        (1)(C)(ii)(II) or (3)(B) of section 493C(d).
    ``(b) Participants in Consumer Testing.--The consumer testing 
process for a product described in subsection (a) shall include, as the 
Secretary determines necessary for the product--
            ``(1) representatives of students (including low-income 
        students, first generation college students, students 
        underrepresented in higher education (including students from 
        ethnic and racial minorities), adult students, and prospective 
        students);
            ``(2) students' families (including low-income families, 
        families with first generation college students, families with 
        students who are underrepresented in higher education 
        (including students from ethnic and racial minorities), and 
        families with prospective students);
            ``(3) representatives of institutions of higher education, 
        including faculty;
            ``(4) secondary school and postsecondary education 
        counselors;
            ``(5) postsecondary financial aid officers; and
            ``(6) nonprofit consumer groups.
    ``(c) Use of Consumer Testing Results.--The Secretary shall use the 
results of the consumer testing in the final development of each 
product described in subsection (a), and may modify the definitions, 
terms, formatting, and design of any product tested under this section 
based on the results of the consumer testing before finalizing the 
product.
    ``(d) Report to Congress.--Not later than 3 months after the date 
any consumer testing under this section concludes, the Secretary shall 
submit to the authorizing committees a report that contains the results 
of such consumer testing.''.

SEC. 483B. LOAN REPAYMENT RATE AND SPEED-BASED REPAYMENT RATE.

    Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by 
inserting after section 483C, as added by section 484, the following:

``SEC. 483D. LOAN REPAYMENT RATE AND SPEED-BASED REPAYMENT RATE.

    ``(a) Definitions.--In this section:
            ``(1) Amount paid.--The term `amount paid', when used with 
        respect to a covered Federal student loan, means the amount 
        paid of the outstanding balance, calculated by determining the 
        difference between the original outstanding balance on the loan 
        and the current loan balance on the loan.
            ``(2) Cohort loan.--The term `cohort loan', when used with 
        respect to an institution, means a covered Federal student loan 
        in the 2-year loan repayment cohort identified for the 
        institution under subsection (b)(2) for a fiscal year.
            ``(3) Covered federal student loan.--The term `covered 
        Federal student loan' means--
                    ``(A) a loan made, insured, or guaranteed under 
                part B or D that is issued to a student borrower; or
                    ``(B) the portion of a loan made under section 428C 
                or a Federal Direct Consolidation Loan that is used to 
                repay a loan described in subparagraph (A).
            ``(4) Current loan balance.--The term `current loan 
        balance' means the sum of the current outstanding balance due 
        on a covered Federal student loan, as of the date on which a 
        rate determination under this section is being made, plus the 
        accrued and unpaid interest balance on the loan as of such 
        date.
            ``(5) Original outstanding balance.--The term `original 
        outstanding balance', when used with respect to a covered 
        Federal student loan, means the total amount of the outstanding 
        balance of the loan, including capitalized interest and any 
        unpaid accrued interest that has not been capitalized, as of 
        the date that the loan entered repayment.
            ``(6) Payments-made loan.--The term `payments-made loan' 
        means a covered Federal student loan that has never been in 
        default (or, in the case of a loan described in paragraph 
        (3)(B), neither the consolidation loan nor any underlying loan 
        have ever been in default), where--
                    ``(A) payments made by a borrower during the most 
                recently completed fiscal year reduce the outstanding 
                balance of the loan (which, in the case of a loan 
                described in paragraph (3)(B), shall be deemed to mean 
                reducing the outstanding balance of the entire 
                consolidation loan) to an amount that is less than the 
                outstanding balance of the loan at the beginning of 
                that fiscal year; or
                    ``(B) the borrower of the loan is in the process of 
                qualifying for public service loan forgiveness under 
                section 455(m) and submits an employment certification 
                to the Secretary that demonstrates the borrower is 
                engaged in a public service job and the borrower made 
                qualifying payments, as determined under such section, 
                on the loan during the most recently completed fiscal 
                year.
    ``(b) Loan Repayment Rate.--
            ``(1) Method of calculation.--Each fiscal year, the 
        Secretary shall determine the loan repayment rate for each 
        institution of higher education that is participating in a 
        program under this title or seeking to regain eligibility to 
        participate in a program under this title by using the loan 
        cohort identified under paragraph (2) to calculate the loan 
        repayment rate, in accordance with paragraph (3).
            ``(2) Determination of loan cohort.--
                    ``(A) In general.--For purposes of calculating the 
                loan repayment rate for a fiscal year under this 
                subsection, the 2-year loan repayment cohort for an 
                institution of higher education shall consist of all 
                covered Federal student loans of the institution that 
                are in their third year of repayment or in their fourth 
                year of repayment, except as provided in subparagraph 
                (B).
                    ``(B) Special rules and exclusions.--
                            ``(i) Special rule for medical and dental 
                        students.--Notwithstanding subparagraph (A), a 
                        covered Federal student loan for any borrower 
                        who is a professional or graduate student 
                        enrolled in a program of study that requires a 
                        medical internship or residency shall be 
                        included in the loan cohort when the loan is in 
                        its sixth and seventh years of repayment.
                            ``(ii) Exclusions.--The Secretary shall 
                        exclude from a loan cohort for a fiscal year 
                        any covered Federal student loan that would 
                        otherwise qualify, if the loan--
                                    ``(I) was discharged under 
                                subsection (a)(1) or (d) of section 437 
                                as a result of the death of the 
                                borrower; or
                                    ``(II) was assigned or transferred 
                                to the Secretary and is being 
                                considered for discharge as a result of 
                                the total and permanent disability of 
                                the borrower, or was discharged by the 
                                Secretary on that basis, under section 
                                437(a).
                            ``(iii) Treatment of deferments and 
                        forbearance.--
                                    ``(I) In general.--The Secretary 
                                shall treat any period during which a 
                                covered Federal student loan is in 
                                deferment or forbearance under this 
                                title as a period of repayment for 
                                purposes of this subsection, except as 
                                provided in subclause (II).
                                    ``(II) Exception for in-school 
                                deferment.--The Secretary shall not 
                                include any period during which 
                                payments on a covered Federal student 
                                loan are deferred under section 
                                428(b)(1)(M)(i), 428B(d)(1)(A)(i), or 
                                455(f)(2)(A) in determining the 
                                borrower's period of repayment for 
                                purposes of paragraph (1), subject to 
                                subclause (III).
                                    ``(III) No exception for certain 
                                short term programs of study.--
                                Subclause (II) shall not apply in any 
                                case where a deferral described in such 
                                subclause is due to a borrower's 
                                enrollment, after completion of the 
                                program for which the loan was made, in 
                                a program of study of less than 6 
                                months in duration.
                            ``(iv) Treatment of consolidation loans.--
                        For each covered Federal student loan that is a 
                        loan described in subsection (a)(3)(B), the 
                        Secretary shall--
                                    ``(I) determine the original 
                                outstanding balance for each original 
                                covered Federal student loan that 
                                comprises the consolidation loan;
                                    ``(II) determine the date that the 
                                repayment period began, in accordance 
                                with this subparagraph, for each such 
                                original loan;
                                    ``(III) include, in determining the 
                                duration of the repayment period under 
                                this paragraph for the underlying loan, 
                                the period during which the original 
                                loan was in repayment and the period 
                                during which the consolidation loan was 
                                in repayment; and
                                    ``(IV) include the amount 
                                determined under subclause (I) for each 
                                underlying loan in the calculations 
                                under this paragraph for the 
                                appropriate fiscal year based on the 
                                repayment period for the underlying 
                                loan.
            ``(3) Formula for loan repayment rate.--
                    ``(A) In general.--For purposes of this section, 
                the loan repayment rate for an institution for a fiscal 
                year shall be equal to the proportion that--
                            ``(i) the sum of--
                                    ``(I) the total original 
                                outstanding balance of all covered 
                                Federal student loans in the loan 
                                cohort of the institution for such 
                                fiscal year that are paid in full in 
                                accordance with subparagraph (B); and
                                    ``(II) the total original 
                                outstanding balance of all payments-
                                made loans in the loan cohort for such 
                                year; bears to
                            ``(ii) the total original outstanding 
                        balance of all loans in the loan cohort for 
                        such year.
                    ``(B) Loans paid in full.--
                            ``(i) In general.--For purposes of 
                        paragraph (1)(A), a loan paid in full is a 
                        covered Federal student loan in the loan cohort 
                        that--
                                    ``(I) has never been in default (or 
                                in the case of a loan described in 
                                subsection (a)(3)(B), neither the 
                                consolidation loan nor any original 
                                loan comprising the consolidation loan 
                                has ever been in default); and
                                    ``(II) has been paid in full by a 
                                borrower.
                            ``(ii) Consolidation loans and 
                        refinancing.--A covered Federal student loan 
                        described in subsection (a)(3)(B) or 
                        consolidated under another refinancing process 
                        provided for under this Act, is not counted as 
                        a loan paid in full for purposes of this 
                        subparagraph until the consolidation loan or 
                        other financial instrument is paid in full by 
                        the borrower.
            ``(4) Publication.--The Secretary shall make the loan 
        repayment rate for each institution of higher education 
        participating in a program under this title or seeking to 
        regain eligibility to participate in a program under this title 
        publicly available on the College Navigator website of the 
        Department, or any successor website, and the website for the 
        National Center for Education Statistics.
    ``(c) Speed-Based Repayment Rate.--
            ``(1) Purpose.--The purpose of the speed-based repayment 
        rate under this subsection is to provide an estimate of--
                    ``(A) the annual rate at which student borrowers at 
                an institution of higher education are repaying their 
                loans under part B and D; and
                    ``(B) the total expected time it takes student 
                borrowers to repay their loans.
            ``(2) In general.--In order to provide additional 
        information regarding loan repayment, the Secretary shall, for 
        each fiscal year--
                    ``(A) determine the speed-based repayment rate for 
                each institution of higher education that is 
                participating in a program under this title or seeking 
                to regain eligibility to participate in a program under 
                this title;
                    ``(B) determine the information required for the 
                comparison methodology established by the Secretary 
                under paragraph (4); and
                    ``(C) publish the most recently available speed-
                based repayment rate and the comparison information 
                under paragraph (4) for each such institution on the 
                College Scorecard, in accordance with section 
                133(d)(3), and on the College Affordability and 
                Transparency Center website, or any successor website, 
                of the Department.
            ``(3) Determination of speed-based repayment rate.--In 
        order to provide additional information regarding loan 
        repayment and determine the speed-based repayment rate required 
        under paragraph (2)(A) for an institution of higher education, 
        the Secretary shall, for each fiscal year--
                    ``(A) determine the percentage paid of the total 
                original outstanding balance of all cohort loans of the 
                institution for the fiscal year (including, for 
                purposes of calculating the speed-based repayment rate 
                only, all loans that would be cohort loans for such 
                fiscal year if the loans were not in delinquency, 
                forbearance, deferment, or default) for which the 
                determination is being made, by dividing--
                            ``(i) the amount paid of all such cohort 
                        loans of the institution for such year; by
                            ``(ii) the total original outstanding 
                        balance of all such cohort loans of the 
                        institution for such year; and
                    ``(B) divide such percentage by the average number 
                of years in repayment for the cohort loans of the 
                institution, rounded to the nearest month and weighted 
                based on the dollar amount of the current loan balance 
                of each cohort loan.
            ``(4) Comparison methodology for disclosure purposes.--
                    ``(A) In general.--The Secretary shall establish a 
                methodology for comparing similar institutions of 
                higher education based on the speed-based repayment 
                rate. The methodology shall--
                            ``(i) use clear and understandable terms, 
                        such as `quickly' and `slowly', to indicate the 
                        relative significance of the speed-based 
                        repayment rate of an institution of higher 
                        education;
                            ``(ii) include a projection of the expected 
                        time for the average borrower in the loan 
                        cohort described in paragraph (3)(A) of each 
                        institution to complete repayment at each 
                        institution, based on the speed-based repayment 
                        rate;
                            ``(iii) include a comparison of each 
                        institution's expected time of repayment under 
                        clause (ii) with the expected times of 
                        repayment for similar institutions;
                            ``(iv) not disaggregate the comparisons 
                        based on status as a public, private nonprofit, 
                        or proprietary institution of higher education;
                            ``(v) distinguish the overall speed-based 
                        repayment rate of an institution from the 
                        speed-based repayment rate of all professional 
                        degree programs of the institution; and
                            ``(vi) calculate a separate speed-based 
                        repayment rate for each program at an 
                        institution that is subject to gainful 
                        employment regulations under section 668.7 of 
                        title 34, Code of Federal Regulations.
                    ``(B) Consumer testing.--The Secretary shall submit 
                the methodology described in subparagraph (A) for 
                consumer testing in accordance with section 483C.
            ``(5) Guidance and regulations.--The Secretary may issue 
        guidance and promulgate rules for the purposes of determining 
        the speed-based repayment rate.
            ``(6) Authority to adjust formula.--Notwithstanding any 
        other provision of this section, the Secretary may adjust the 
        formula for calculating the speed-based repayment rate under 
        paragraphs (2) and (3) to provide a more informative and 
        accurate measure of the speed of repayment.
    ``(d) Publication of Student Default Risk.--Each year, the 
Secretary shall publish the student default risk for each institution 
for the most recent fiscal year on the website of the National Center 
for Education Statistics.''.

SEC. 483C. ONE-TIME FAFSA PILOT PROGRAM.

    Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by 
inserting after section 483C, as added by section 485, the following:

``SEC. 483E. ONE-TIME FAFSA PILOT PROGRAM.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to streamline the annual process by which students 
        apply for Federal financial assistance; and
            ``(2) to reduce the need for students to apply for such 
        assistance each year.
    ``(b) Pilot Program Authorized.--The Secretary is authorized to 
establish a pilot program and select 5 eligible States--
            ``(1) in which a student who attends an institution of 
        higher education in the eligible State may submit a single Free 
        Application for Federal Student Aid described in section 483 
        and as modified under subsection (d) (referred to in this 
        section as the `FAFSA)', to be used for application to 
        determine the need and eligibility of the student for financial 
        assistance under this title during the official length of the 
        student's proposed postsecondary degree program; and
            ``(2) that shall receive a grant in accordance with 
        subsection (e).
    ``(c) Eligible States.--The Secretary shall select 5 eligible 
States that are determined by the Secretary to have a strong record of 
increasing college access and affordability, especially for low-income 
students, to participate in the pilot program described in subsection 
(b). The selection of eligible States shall be based on the extent to 
which the State has--
            ``(1) invested, and continues to invest, significantly in 
        public higher education, resulting in a comparatively lower net 
        price for low-income students;
            ``(2) allocated State financial aid primarily on the basis 
        of need; and
            ``(3) agreed, as a condition of the State's application for 
        the pilot program under this section, to provide all in-State 
        students (as determined by the State) with an offer for State 
        financial aid that--
                    ``(A) is valid for not less than 2 years and not 
                more than 4 years, as determined by the State; and
                    ``(B) shall be subject to change only upon certain 
                conditions, such as significant changes in a student's 
                financial circumstances.
    ``(d) Single FAFSA Submission.--The Secretary shall implement, in 
consultation with the 5 selected eligible States, a pilot program to 
streamline the process of application to determine the need and 
eligibility of a student for financial assistance under this title that 
incorporates the following:
            ``(1) An option for students that are enrolled in an 
        institution of higher education in a selected eligible State to 
        submit a single FAFSA at the beginning of the student's 
        postsecondary degree program and receive a determination of 
        financial assistance under this title that shall, on a 
        contingent basis, be valid for not less than 2 years and not 
        more than four years, as determined by the State.
            ``(2) The determination of financial assistance under 
        paragraph (1) shall be made in accordance with part F, except 
        that relevant calculations shall be made using a multi-year 
        average, of two or three years, from the most recent tax years 
        for which data are available. A student may use previously 
        submitted student and parent taxpayer data to prepopulate the 
        electronic version of the FAFSA, as described in section 483(f) 
        of the Higher Education Act of 1965 (20 U.S.C. 1090(f)).
            ``(3) As a condition of the continued receipt of financial 
        assistance under this section, the Secretary may require a 
        student who submits the single FAFSA to respond to a short 
        number of questions (which may be determined by the Secretary), 
        on an annual basis, to determine if there is a change in the 
        financial status of the student (such as whether the student or 
        the student's parent has experienced a substantial increase in 
        annual income) in order to ensure that the student continues to 
        receive the appropriate amount of financial assistance under 
        this title.
            ``(4) Notwithstanding paragraph (1), a requirement that 
        students who experience significant changes in their financial 
        circumstances, as determined by the Secretary, will be required 
        to resubmit the FAFSA in order to receive a new determination 
        of financial assistance under this title.
            ``(5) An income verification process--
                    ``(A) which the Secretary, through the 
                establishment of a memorandum of understanding with the 
                Secretary of the Treasury, will develop to share the 
                income tax data of a random sample of students who have 
                received Federal assistance under this title, including 
                Federal Pell Grants under section 401 and loans made 
                under part D;
                    ``(B) to ensure that students who have not 
                resubmitted a FAFSA in accordance with paragraph (4) 
                did not have a significant change in financial 
                circumstances that would have required them to do so;
                    ``(C) that shall be carried out in a way so as to 
                ensure that no personally identifiable information is 
                made public through the income verification process; 
                and
                    ``(D) that will be carried out only with the 
                consent of students, whose consent will be requested as 
                part of the annual response required under paragraph 
                (3).
            ``(6) An option for students to request professional 
        judgment or resubmit their FAFSA each year, to receive a new 
        determination of eligibility for financial assistance under 
        this title.
    ``(e) Grant Amount.--Selected eligible States that receive a grant 
under this section shall use grant funds to increase public awareness 
of, and promote the use of, the single FAFSA that may be submitted 
under the pilot program to be used for application to determine the 
need and eligibility of the student for financial assistance under this 
title during the official length of the student's proposed 
postsecondary degree program.
    ``(f) Supplement Not Supplant.--The grants provided under this 
section shall be used to supplement, and not supplant, State funds that 
are used to improve college access and affordability.
    ``(g) Evaluation.--Not later than 3 years after the date of 
enactment of the Higher Education Affordability Act, and 5 years 
thereafter, the Secretary shall prepare and submit to the authorizing 
committees a report that contains an evaluation of the effectiveness of 
the pilot program under this section in improving college access, 
increasing FAFSA submission rates, and increasing postsecondary 
education credit and course accumulation.''.

SEC. 484. ABILITY TO BENEFIT.

    (a) In General.--Subsection (d) of section 484 (20 U.S.C. 1091) is 
amended to read as follows:
    ``(d) Students Who Are Not High School Graduates.--
            ``(1) Student eligibility.--In order for a student who does 
        not have a certificate of graduation from a school providing 
        secondary education, or the recognized equivalent of such 
        certificate, to be eligible for any assistance under subparts 
        1, 3, and 4 of part A and parts B, C, D, and E of this title, 
        the student shall meet the requirements of one of the following 
        subparagraphs:
                    ``(A) The student is enrolled in an eligible career 
                pathway program and meets one of the following 
                standards:
                            ``(i) The student shall take an 
                        independently administered examination and 
                        shall achieve a score, specified by the 
                        Secretary, demonstrating that such student can 
                        benefit from the education or training being 
                        offered. Such examination shall be approved by 
                        the Secretary on the basis of compliance with 
                        such standards for development, administration, 
                        and scoring as the Secretary may prescribe in 
                        regulations.
                            ``(ii) The student shall be determined as 
                        having the ability to benefit from the 
                        education or training in accordance with such 
                        process as the State shall prescribe. Any such 
                        process described or approved by a State for 
                        the purposes of this section shall be effective 
                        6 months after the date of submission to the 
                        Secretary unless the Secretary disapproves such 
                        process. In determining whether to approve or 
                        disapprove such process, the Secretary shall 
                        take into account the effectiveness of such 
                        process in enabling students without high 
                        school diplomas or the equivalent thereof to 
                        benefit from the instruction offered by 
                        institutions utilizing such process, and shall 
                        also take into account the cultural diversity, 
                        economic circumstances, and educational 
                        preparation of the populations served by the 
                        institutions.
                            ``(iii) The student shall be determined by 
                        the institution of higher education as having 
                        the ability to benefit from the education or 
                        training offered by the institution of higher 
                        education upon satisfactory completion of 6 
                        credit hours or the equivalent coursework that 
                        are applicable toward a degree or certificate 
                        offered by the institution of higher education.
                    ``(B) The student has completed a secondary school 
                education in a home school setting that is treated as a 
                home school or private school under State law.
            ``(2) Eligible career pathway program.--In this subsection, 
        the term `eligible career pathway program' means a program 
        that--
                    ``(A) concurrently enrolls participants in 
                connected adult education and eligible postsecondary 
                programs;
                    ``(B) provides counseling and supportive services 
                to identify and attain academic and career goals;
                    ``(C) provides structured course sequences that--
                            ``(i) are articulated and contextualized; 
                        and
                            ``(ii) allow students to advance to higher 
                        levels of education and employment;
                    ``(D) provides opportunities for acceleration to 
                attain recognized postsecondary credentials, including 
                degrees, industry relevant certifications, and 
                certificates of completion of apprenticeship programs;
                    ``(E) is organized to meet the needs of adults;
                    ``(F) is aligned with the education and skill needs 
                of the regional economy; and
                    ``(G) has been developed and implemented in 
                collaboration with partners in business, workforce 
                development, and economic development.''.
    (b) Effective Date and Transition.--The amendment made by 
subsection (a) shall apply to students who first enroll in a program of 
study during the period beginning July 1, 2012, and ending June 30, 
2019.

SEC. 485. REASONABLE COLLECTION COSTS IN STATE COURT JUDGMENTS.

    Section 484A(b)(1) (20 U.S.C. 1091a(b)(1)) is amended by striking 
``reasonable collection costs'' and inserting ``reasonable collection 
costs, which, in the case of a loan made under part D, means collection 
costs in an amount that is reasonable and that does not exceed the bona 
fide collection costs associated with such student loan that are 
actually incurred in collecting the debt against the borrower''.

SEC. 486. IMPROVED DISCLOSURES, COUNSELING, AND FINANCIAL ASSISTANCE 
              INFORMATION FOR STUDENTS.

    (a) In General.--Section 485 (20 U.S.C. 1092) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A)--
                            (i) by striking clause (i) and inserting 
                        the following:
            ``(i) personalized information that reflects the borrower's 
        actual borrowing circumstances, which shall include--
                    ``(I) the repayment plans available, including the 
                income-based repayment option under section 493C and 
                the standard 10-year repayment option under section 
                428(b)(9)(A)(i) or 455(d)(1)(A);
                    ``(II) a description of the different features of 
                each plan; and
                    ``(III) personalized information showing estimates 
                of the borrower's anticipated monthly payments and the 
                difference in total interest paid and total payments 
                under each plan;'';
                            (ii) by redesignating clauses (viii) and 
                        (ix) as clauses (x) and (xi), respectively;
                            (iii) by inserting after clause (vii) the 
                        following:
            ``(viii) a statement that student loans must be repaid even 
        if the student does not complete the program in which the 
        student is enrolled;
            ``(ix) information and resources related to financial 
        literacy and planning, including budgeting, as determined by 
        the Secretary based on the recommendations of the Secretary of 
        the Treasury in the report submitted under section 1103 of the 
        Higher Education Affordability Act;''; and
                            (iv) by adding at the end the following:
    ``(C) The counseling described in subparagraph (A)--
            ``(i) shall be provided in a simple and understandable 
        manner that includes mechanisms to check for comprehension; and
            ``(ii) shall be provided--
                    ``(I) during an exit counseling session conducted 
                in person; or
                    ``(II) online.''; and
                    (B) in paragraph (2)(A)(iv), by striking ``, 
                address, social security number, references, and 
                driver's license number'' and inserting ``, postal 
                address, social security number, references, driver's 
                license number, phone number, and personal electronic 
                mailing address that is not associated with the 
                institution'';
            (2) in subsection (d)(1), by striking ``income-sensitive'' 
        and all that follows through ``part D'' and inserting ``income-
        based repayment plans for loans made, insured, or guaranteed 
        under part B or made under part D.'';
            (3) in subsection (f)--
                    (A) by striking the subsection heading and 
                inserting ``Disclosure of Campus Security and 
                Harassment Policy and Campus Crime Statistics'';
                    (B) in paragraph (6)(A)--
                            (i) by redesignating clauses (iii), (iv), 
                        and (v) as clauses (vii), (viii), and (ix), 
                        respectively; and
                            (ii) by inserting after clause (ii) the 
                        following:
                    ``(iii) The term `commercial mobile service' has 
                the meaning given the term in section 332(d) of the 
                Communications Act of 1934 (47 U.S.C. 332(d)).
                    ``(iv) The term `electronic communication' means 
                any transfer of signs, signals, writing, images, 
                sounds, or data of any nature transmitted in whole or 
                in part by a wire, radio, electromagnetic, 
                photoelectronic, or photooptical system.
                    ``(v) The term `electronic messaging services' has 
                the meaning given the term in section 102 of the 
                Communications Assistance for Law Enforcement Act (47 
                U.S.C. 1001).
                    ``(vi) The term `harassment' means conduct, 
                including acts of verbal, nonverbal, or physical 
                aggression, intimidation, or hostility (including 
                conduct that is undertaken in whole or in part, through 
                the use of electronic messaging services, commercial 
                mobile services, electronic communications, or other 
                technology) that--
                            ``(I) is sufficiently severe, persistent, 
                        or pervasive so as to limit a student's ability 
                        to participate in or benefit from a program or 
                        activity at an institution of higher education, 
                        or to create a hostile or abusive educational 
                        environment at an institution of higher 
                        education; and
                            ``(II) is based on a student's actual or 
                        perceived--
                                    ``(aa) race;
                                    ``(bb) color;
                                    ``(cc) national origin;
                                    ``(dd) sex;
                                    ``(ee) disability;
                                    ``(ff) sexual orientation;
                                    ``(gg) gender identity; or
                                    ``(hh) religion.'';
                    (C) by redesignating paragraphs (9) through (18) as 
                paragraphs (10) through (19), respectively; and
                    (D) by inserting after paragraph (8) the following:
            ``(9)(A) Each institution of higher education participating 
        in any program under this title, other than a foreign 
        institution of higher education, shall develop and distribute 
        as part of the report described in paragraph (1) a statement of 
        policy regarding harassment, which shall include--
                    ``(i) a prohibition of harassment of enrolled 
                students by other students, faculty, and staff--
                            ``(I) on campus;
                            ``(II) in noncampus buildings or on 
                        noncampus property;
                            ``(III) on public property;
                            ``(IV) through the use of electronic mail 
                        addresses issued by the institution of higher 
                        education;
                            ``(V) through the use of computers and 
                        communication networks, including any 
                        telecommunications service, owned, operated, or 
                        contracted for use by the institution of higher 
                        education or its agents; or
                            ``(VI) during an activity sponsored by the 
                        institution of higher education or carried out 
                        with the use of resources provided by the 
                        institution of higher education;
                    ``(ii) a description of the institution's programs 
                to combat harassment, which shall be aimed at the 
                prevention of harassment;
                    ``(iii) a description of the procedures that a 
                student should follow if an incident of harassment 
                occurs; and
                    ``(iv) a description of the procedures that the 
                institution will follow once an incident of harassment 
                has been reported.
            ``(B) The statement of policy described in subparagraph (A) 
        shall address the following areas:
                    ``(i) Procedures for timely institutional action in 
                cases of alleged harassment, which procedures shall 
                include a clear statement that the accuser and the 
                accused shall be informed of the outcome of any 
                disciplinary proceedings in response to an allegation 
                of harassment.
                    ``(ii) Possible sanctions to be imposed following 
                the final determination of an institutional 
                disciplinary procedure regarding harassment.
                    ``(iii) Notification of existing counseling, mental 
                health, or student services for victims or perpetrators 
                of harassment, both on campus and in the community.
                    ``(iv) Identification of a designated employee or 
                office at the institution that will be responsible for 
                receiving and tracking each report of harassment by a 
                student, faculty, or staff member.'';
            (4) in subsection (l)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Disclosure required prior to signing master 
        promissory note.--Each eligible institution shall, prior to 
        obtaining or arranging execution of a master promissory note 
        for a loan under part D (other than a Federal Direct 
        Consolidation Loan) by a first-time borrower at such 
        institution, ensure that the borrower receives comprehensive 
        information on the terms and conditions of the loan and of the 
        responsibilities the borrower has with respect to such loan in 
        accordance with paragraph (2). Such information--
                    ``(A) shall be provided through the use of 
                interactive programs that include mechanisms to check 
                the borrower's comprehension of the terms and 
                conditions of the borrower's loans under part D, using 
                simple and understandable language and clear 
                formatting; and
                    ``(B) shall be provided--
                            ``(i) during an entrance counseling session 
                        conducted in person; or
                            ``(ii) online.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (H), by striking 
                        ``within the regular time for program 
                        completion''; and
                            (ii) by adding at the end the following:
                    ``(L)(i) A disclosure that Federal student loans 
                offer generally more favorable terms and beneficial 
                repayment options than private education loans, an 
                explanation of the difference and relevance between 
                student loans with a fixed interest rate as compared to 
                student loans with a variable interest rate, and a 
                recommendation that students examine available Federal 
                student loan options before applying for private 
                education loans.
                    ``(ii) The explanation of the benefits provided 
                under Federal student loans developed by the Secretary 
                under section 483A(b).
                    ``(M) An explanation, if applicable, that a student 
                may refuse all or part of a student loan available 
                under part D, which could help minimize the student's 
                debt obligations.
                    ``(N) Information relating to the institution's 
                cohort default rate, including--
                            ``(i) the cohort default rate, as defined 
                        in section 435(m), of the institution;
                            ``(ii) an easy to understand explanation of 
                        the cohort default rate;
                            ``(iii) the percentage of students at the 
                        institution of higher education who borrow 
                        Federal student loans under this title;
                            ``(iv) the national average cohort default 
                        rate (as determined by the Secretary in 
                        accordance with section 435(m));
                            ``(v) in the case of an institution with a 
                        cohort default rate that is greater than the 
                        national average cohort default rate (as 
                        described in clause (iv)), a disclosure to the 
                        student that the institution's cohort default 
                        rate is above the national average; and
                            ``(vi) in the case of an institution with a 
                        cohort default rate that is greater than 30 
                        percent, a disclosure to the students that if 
                        the cohort default rate remains greater than 30 
                        percent for the 3 consecutive years--
                                    ``(I) the institution will lose 
                                institutional eligibility for the 
                                purposes of programs authorized under 
                                this title; and
                                    ``(II) the student will no longer 
                                be able to receive Federal financial 
                                aid at that institution.
                    ``(O) Information relating to the institution's 
                speed-based loan repayment rate, including--
                            ``(i) the speed-based loan repayment rate, 
                        as described in section 483D(c), of the 
                        institution and, if applicable, the speed-based 
                        loan repayment rate of each program at the 
                        institution that is subject to gainful 
                        employment regulations under section 668.7 of 
                        title 34, Code of Federal Regulations;
                            ``(ii) an easy to understand description of 
                        what a speed-based loan repayment rate is;
                            ``(iii) the national average speed-based 
                        loan repayment rate, as determined by the 
                        Secretary in accordance with section 483D(c); 
                        and
                            ``(iv) in the case of an institution with a 
                        speed-based loan repayment rate that is below 
                        the national average speed-based loan repayment 
                        rate (as described in clause (iii)), a 
                        disclosure to the student that the 
                        institution's speed-based loan repayment rate 
                        is below the national average.
                    ``(P) In the case of an institution with a school 
                default risk for a fiscal year, as calculated by the 
                Secretary, of 0.1 or higher, an explanation of the 
                obligations of the institution under section 
                487(a)(32)(A).
                    ``(Q) The percentages of students at the 
                institution who obtain a degree or certificate within 
                100 percent of the normal time for completion of the 
                student's program, and who obtain a degree or 
                certificate within 150 percent of the normal time for 
                completion of, the student's program.
                    ``(R) Information and resources related to 
                financial literacy and planning, including budgeting, 
                as determined by the Secretary based on the 
                recommendations of the Secretary of the Treasury in the 
                report submitted under section 1103 of the Higher 
                Education Affordability Act.''; and
                    (C) by adding at the end the following:
            ``(3) Borrower contact information.--
                    ``(A) In general.--Each eligible institution 
                shall--
                            ``(i) require that a borrower who applies 
                        for a loan under this title to attend the 
                        institution on or after the date of enactment 
                        of the Higher Education Affordability Act 
                        submit to the institution, during the entrance 
                        counseling required by this subsection, the 
                        borrower's contact information at the time of 
                        the entrance counseling, including the 
                        borrower's phone number and the borrower's 
                        postal address; and
                            ``(ii) request that the borrower provide a 
                        personal electronic mailing address of the 
                        borrower that is not associated with the 
                        institution.
                    ``(B) Borrower responsibility.--A borrower 
                receiving entrance counseling under this subsection 
                shall provide the institution with the personal 
                electronic mailing address described in subparagraph 
                (A)(ii) and shall update the borrower's contact 
                information as necessary to ensure that the information 
                remains accurate.''; and
            (5) by adding at the end the following:
    ``(n) Additional Notifications and Counseling for Borrowers.--
            ``(1) Annual notifications.--Each eligible institution 
        shall, not less than once every year while a student is 
        enrolled in the institution, carry out the notification 
        requirements described in subparagraphs (A) through (G) with 
        respect to a borrower of a loan made, insured, or guaranteed 
        under part B (other than a loan made pursuant to section 428C) 
        or made under part D (other than a Federal Direct Consolidation 
        Loan). Such notification requirements may be fulfilled by 
        notifications provided at the same time as existing methods of 
        communication, such as by accompanying the annual financial aid 
        award letter, subject to subparagraph (E).
                    ``(A) Student loan balance; loan terms.--The 
                eligible institution shall provide the borrower with a 
                written notification of--
                            ``(i) the borrower's outstanding balance of 
                        principal and interest owing on any loan made, 
                        insured, or guaranteed under this title;
                            ``(ii) the borrower's repayment options;
                            ``(iii) a disclosure that Federal student 
                        loans offer generally more favorable terms and 
                        beneficial repayment options than private 
                        education loans, an explanation of the 
                        difference and relevance between student loans 
                        with a fixed interest rate as compared to 
                        student loans with a variable interest rate, 
                        and a recommendation that students examine 
                        available Federal student loan options before 
                        applying for private education loans; and
                            ``(iv) the explanation of the benefits 
                        provided under Federal student loans developed 
                        by the Secretary under section 483A(b).
                    ``(B) Federal direct stafford loan eligibility.--In 
                addition to the notifications under subparagraph (A) 
                and under subparagraph (C), if applicable, in the case 
                of a borrower described in paragraph (1) who qualifies 
                for a Federal Direct Stafford Loan and who was a new 
                borrower on or after July 1, 2013, the institution 
                shall provide--
                            ``(i) a written notification of the period 
                        of time that the borrower has remaining before 
                        the borrower will not be eligible for a Federal 
                        Direct Stafford Loan in accordance with section 
                        455(q) because the period of time for which the 
                        borrower has received Federal Direct Stafford 
                        Loans, in the aggregate, exceeds the period of 
                        enrollment described in section 455(q)(3); and
                            ``(ii) a written notification to such 
                        student when the period of time for which the 
                        borrower has received Federal Direct Stafford 
                        Loans, in the aggregate, reaches--
                                    ``(I) except as provided in 
                                subclause (II) or (III), a period equal 
                                to 100 percent of the published length 
                                of the educational program in which the 
                                student is enrolled;
                                    ``(II) in the case of a borrower 
                                who was previously enrolled in 1 or 
                                more other educational programs that 
                                began on or after July 1, 2013, a 
                                period equivalent to \2/3\ of the 
                                maximum period of time that the 
                                borrower is eligible to receive a 
                                Federal Direct Stafford Loan, as 
                                calculated in accordance with section 
                                455(q)(3)(A)(ii); or
                                    ``(III) in the case of a borrower 
                                who was or is enrolled on less than a 
                                full-time basis or in the case of a 
                                borrower whose course of study or 
                                program is described in paragraph 
                                (3)(B) or (4)(B) of section 484(b), a 
                                period equivalent to \2/3\ of the 
                                maximum period of time that the 
                                borrower is eligible to receive a 
                                Federal Direct Stafford Loan, as 
                                calculated in accordance with section 
                                455(q)(3)(B).
                    ``(C) Federal pell grant eligibility.--In addition 
                to the notifications under subparagraph (A) and under 
                subparagraph (B), if applicable, in the case of a 
                borrower described in paragraph (1) who is receiving a 
                Federal Pell Grant, the institution shall provide a 
                written notification to such borrower of the student's 
                remaining period of eligibility for a Federal Pell 
                Grant in accordance with section 401(c)(5).
                    ``(D) Confirmation of receipt of notification.--
                Each eligible institution shall require the borrower, 
                for each applicable notification described in this 
                paragraph, to provide written confirmation (including 
                through electronic means) that the borrower has 
                received the notification and understands the 
                information contained in that notification.
                    ``(E) Notifications by certain institutions.--In 
                the case of an institution described in paragraph (2), 
                the notification requirements under this paragraph 
                (including the confirmation of notification described 
                in subparagraph (D)) shall be carried out annually 
                during the interim in-school counseling described in 
                paragraph (2).
                    ``(F) Additional loan counseling requirements for 
                certain student borrowers.--
                            ``(i) Borrowers in need of additional loan 
                        counseling.--A borrower shall be subject to the 
                        requirements described in clause (iii) if--
                                    ``(I) the borrower has a loan made, 
                                insured, or guaranteed under part B 
                                (other than a loan made pursuant to 
                                section 428C or a loan made on behalf 
                                of a student pursuant to section 428B) 
                                or made under part D (other than a 
                                Federal Direct Consolidation Loan or a 
                                Federal Direct PLUS loan made on behalf 
                                of a student); and
                                    ``(II)(aa) the borrower has 
                                transferred to the institution from 
                                another institution of higher 
                                education; or
                                    ``(bb) the borrower meets certain 
                                criteria that may place a borrower at 
                                greater risk of defaulting on student 
                                loans.
                            ``(ii) Determination made by secretary.--
                        The Secretary shall determine any appropriate 
                        criteria to be used in clause (i)(II)(bb), such 
                        as withdrawing prematurely from an educational 
                        program or being in danger of failing to meet 
                        standards of academic progress. Nothing in this 
                        subparagraph shall be construed to allow an 
                        institution to select any criteria for purposes 
                        of such clause.
                            ``(iii) Additional counseling.--Each 
                        eligible institution shall require each 
                        borrower described in clause (i) to participate 
                        in an additional loan counseling session, which 
                        shall--
                                    ``(I) be coordinated jointly by the 
                                student's academic advisor and the 
                                financial aid office of the 
                                institution;
                                    ``(II) include disclosure of the 
                                estimated additional cost of attendance 
                                that the borrower may incur by failing 
                                to progress through the borrower's 
                                educational program at a pace that 
                                meets the requirements for satisfactory 
                                progress, as described in section 
                                484(c); and
                                    ``(III) in the case of a borrower 
                                described in clause (i)(II)(bb), 
                                include the development of an 
                                institutionally approved academic plan 
                                designed to ensure that the borrower 
                                will complete the borrower's 
                                educational program within a reasonable 
                                timeframe.
                    ``(G) Counseling for parent plus borrowers.--
                            ``(i) In general.--Each eligible 
                        institution shall, prior to disbursement of a 
                        Federal Direct PLUS loan made on behalf of a 
                        student, ensure that the borrower receives 
                        comprehensive information on the terms and 
                        conditions of the loan and of the 
                        responsibilities the borrower has with respect 
                        to such loan. Such information--
                                    ``(I) shall be provided through the 
                                use of interactive programs that use 
                                mechanisms to check the borrower's 
                                understanding of the terms and 
                                conditions of the borrower's loan, 
                                using simple and understandable 
                                language and clear formatting; and
                                    ``(II) shall be provided--
                                            ``(aa) during a counseling 
                                        session conducted in person; or
                                            ``(bb) online.
                            ``(ii) Information to be provided.--The 
                        information to be provided to the borrower 
                        under clause (i) shall include the following:
                                    ``(I) Information on how interest 
                                accrues and is capitalized during 
                                periods when the interest is not paid 
                                by the borrower.
                                    ``(II) An explanation of when loan 
                                repayment begins, of the options 
                                available for a borrower who may need a 
                                deferment, and that interest accrues 
                                during a deferment.
                                    ``(III) The repayment plans that 
                                are available to the borrower, 
                                including personalized information 
                                showing--
                                            ``(aa) estimates of the 
                                        borrower's anticipated monthly 
                                        payments under each repayment 
                                        plan that is available; and
                                            ``(bb) the difference in 
                                        interest paid and total 
                                        payments under each repayment 
                                        plan.
                                    ``(IV) The obligation of the 
                                borrower to repay the full amount of 
                                the loan, regardless of whether the 
                                student on whose behalf the loan was 
                                made completes the program in which the 
                                student is enrolled.
                                    ``(V) The likely consequences of 
                                default on the loan, including adverse 
                                credit reports, delinquent debt 
                                collection procedures under Federal 
                                law, and litigation.
                                    ``(VI) A notification that the loan 
                                is not eligible for an income-based 
                                repayment plan under section 493C.
                                    ``(VII) The name and contact 
                                information of the individual the 
                                borrower may contact if the borrower 
                                has any questions about the borrower's 
                                rights and responsibilities or the 
                                terms and conditions of the loan.
            ``(2) Interim in-school counseling requirements for 
        institutions with greater than average student default risk.--
        Each eligible institution that has a student default risk that 
        is greater than the national average student default risk (as 
        determined by the Secretary), shall require each borrower of a 
        loan made, insured, or guaranteed under part B (other than a 
        loan made pursuant to section 428C or a loan made on behalf of 
        a student pursuant to section 428B) or made under part D (other 
        than a Federal Direct Consolidation Loan or a Federal Direct 
        PLUS loan made on behalf of a student), to undertake not less 
        than 1 online or in-person counseling session at the beginning 
        of each academic year that the borrower is enrolled at such 
        institution, which shall include--
                    ``(A) the applicable notification requirements 
                described in paragraph (1); and
                    ``(B) a statement that student loans must be repaid 
                even if the student does not complete the program in 
                which the student enrolled.
    ``(o) Required Data.--In any case where an institution needs data 
to comply with subsection (b), (l), or (n) that are not available to 
the institution but that are available to the Department or a Federal 
agency, the Secretary or the head of such agency shall provide or make 
available such information to the institution.
    ``(p) Reports Relating to Clinical Training Programs.--
            ``(1) Report on clinical training program agreements.--
                    ``(A) In general.--Beginning in the year in which 
                the Higher Education Affordability Act is enacted, an 
                eligible institution that participates in any program 
                under this title shall prepare and submit a report to 
                the Secretary containing the information described in 
                subparagraph (C), for every year in which the eligible 
                institution has an agreement with a hospital or health 
                facility, through which--
                            ``(i) the eligible institution agrees to 
                        provide funding or other benefits to the 
                        hospital or health facility; and
                            ``(ii) that hospital or health facility 
                        provides opportunities for students at the 
                        institution to participate in a clinical 
                        training program.
                    ``(B) Timing.--Following the year in which the 
                Higher Education Affordability Act is enacted, the 
                report described in this paragraph shall be submitted 
                not more than 30 days after the end of any year for 
                which a report is required to comply with subparagraph 
                (A).
                    ``(C) Contents of report.--The report described in 
                this paragraph shall include the following:
                            ``(i) The amount of any payments from the 
                        institution of higher education to a hospital 
                        or health facility during the period covered by 
                        the report, and the precise terms of any 
                        agreement under which such amounts are 
                        determined.
                            ``(ii) Any conditions associated with the 
                        transfer of money or the provision of clinical 
                        training program opportunities that are part of 
                        the agreement described in subparagraph (A).
                            ``(iii) Any memorandum of understanding 
                        between the institution of higher education, or 
                        an alumni association or foundation affiliated 
                        with or related to such institution, and a 
                        hospital or health facility, that directly or 
                        indirectly relates to any aspect of any 
                        agreement referred to in subparagraph (A) or 
                        controls or directs any obligations or 
                        distribution of benefits between or among any 
                        such entities.
                            ``(iv) For each hospital or health facility 
                        that has an agreement described in subparagraph 
                        (A) with the institution, the number of 
                        clinical training positions at the hospital or 
                        health facility that are reserved for students 
                        at that institution.
            ``(2) Report on charitable donations.--
                    ``(A) In general.--Beginning in the year in which 
                the Higher Education Affordability Act is enacted, and 
                annually thereafter, an eligible institution shall 
                prepare and submit to the Secretary a report containing 
                the information described in subparagraph (C) if--
                            ``(i) the eligible institution made a 
                        charitable donation to a hospital or health 
                        facility in any of the previous 3 years; and
                            ``(ii) the number of students from the 
                        eligible institution who participate in any 
                        clinical training program at the hospital or 
                        health facility where such a donation was made 
                        increases by more than 5 students or 10 
                        percent, whichever is less, as compared to the 
                        number of such students who participated in a 
                        clinical training program at that hospital or 
                        health facility during the first year in the 
                        previous 3-year period.
                    ``(B) Timing.--Following the year in which the 
                Higher Education Affordability Act is enacted, the 
                report described in subparagraph (A) shall be submitted 
                not more than 30 days after the end of any year for 
                which a report is required to comply with subparagraph 
                (A).
                    ``(C) Contents of report.--The report described in 
                this paragraph shall include the following:
                            ``(i) The amount of each charitable 
                        donation that was made in the previous 3-year 
                        period by the eligible institution to a 
                        hospital or health facility.
                            ``(ii) The number of students from the 
                        eligible institution who participate in any 
                        clinical training program at the hospital or 
                        health facility where each such donation was 
                        made--
                                    ``(I) during the year in which the 
                                report is submitted; and
                                    ``(II) during the first year in the 
                                previous 3-year period covered by the 
                                report.
            ``(3) Aggregation by institution.--The information required 
        to be reported in this subsection shall include, and shall be 
        aggregated with respect to, each institution of higher 
        education and each alumni association or foundation affiliated 
        with or related to such institution. For any year in which an 
        institution is required to submit a report described under 
        paragraph (1) and a report described under paragraph (2), the 
        institution may submit a single report for that year containing 
        all of the information required under paragraphs (1) and (2).
            ``(4) Report to congress.--The Secretary, in conjunction 
        with the Secretary of Health and Human Services, shall submit 
        to Congress, and make available to the public, an annual report 
        that lists the reports submitted to the Secretary by each 
        institution of higher education in accordance with this 
        subsection.
            ``(5) Public disclosure.--Each eligible institution 
        described in paragraph (1) or (2) of this subsection shall make 
        readily available the reports described in such paragraph (as 
        applicable), through appropriate publications, mailings, and 
        electronic media to the general public.
            ``(6) Definitions.--In this subsection:
                    ``(A) Clinical training program.--The term 
                `clinical training program' means any program at, or 
                associated or affiliated with, a hospital or health 
                facility (or any of a hospital's affiliates or health 
                facility's affiliates), the completion of which 
                fulfills a requirement that is necessary to receive a 
                license, certificate, specialized accreditation, or 
                other academically related pre-condition necessary 
                under Federal or State law for a health profession.
                    ``(B) Health facility.--The term `health facility' 
                has the meaning given that term in section 804(d).
                    ``(C) Hospital.--The term `hospital' has the 
                meaning given that term in section 1861 of the Social 
                Security Act (42 U.S.C. 1395x).''.
    (b) Effect on Changes to Campus Safety Provisions on Other Laws.--
Nothing in the amendments made by subsection (a)(3), shall be construed 
to invalidate or limit rights, remedies, procedures, or legal standards 
available to victims of discrimination under any other Federal law or 
law of a State or political subdivision of a State, including title VI 
of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of 
the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504 
or 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794, 794a), or the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.). The 
obligations imposed by this Act are in addition to those imposed by 
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), 
title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
    (c) Effective Date for Termination of Income-Sensitive Repayment 
Plan Reference.--The amendment made by subsection (a)(2) shall take 
effect on the date that is 1 year after the date of enactment of this 
Act.

SEC. 487. IMPROVEMENTS TO NATIONAL STUDENT LOAN DATA SYSTEM.

    (a) Amendments.--Section 485B (20 U.S.C. 1092b) is amended--
            (1) in subsection (a), by inserting ``and loans made or 
        insured under part A of title VII, or part E of title VIII, of 
        the Public Health Service Act (42 U.S.C. 292 et seq., 296 et 
        seq.),'' after ``parts D and E,''; and
            (2) by striking subsection (h) and inserting the following:
    ``(h) Integration of Databases.--
            ``(1) In general.--The Secretary shall integrate the 
        National Student Loan Data System with the Federal Pell Grant 
        applicant and recipient databases as of January 1, 1994, and 
        any other databases containing information on participation in 
        programs under this title.
            ``(2) Department of defense and department of veterans 
        affairs information.--
                    ``(A) In general.--In order to incorporate the 
                military and veteran status of borrowers into the 
                National Student Loan Data System, the Secretary shall 
                integrate the National Student Loan Data System with 
                information from--
                            ``(i) the Department of Defense, including 
                        the Defense Manpower Data Center; and
                            ``(ii) the Department of Veterans Affairs, 
                        including data about veterans who are eligible 
                        for educational assistance under laws 
                        administered by the Secretary of Veterans 
                        Affairs.
                    ``(B) Memoranda of understanding.--The Secretary 
                shall enter into any memoranda of understanding or 
                other agreements that are necessary to carry out this 
                paragraph.''; and
            (3) by adding at the end the following:
    ``(i) Public Health Service Loans.--The Secretary shall include in 
the National Student Loan Data System established pursuant to 
subsection (a) information regarding loans made under--
            ``(1) subpart II of part A of title VII of the Public 
        Health Service Act; or
            ``(2) part E of title VIII of the Public Health Service 
        Act.
    ``(j) Private Education Loan Information.--The Secretary shall 
include in the National Student Loan Data System established pursuant 
to subsection (a) the information regarding private education loans 
that is determined necessary by the Director of the Bureau of Consumer 
Financial Protection, in coordination with the Secretary, to be 
included pursuant to section 128(e)(13) of the Truth in Lending Act (15 
U.S.C. 1638(e)(13)).''.
    (b) Reports.--
            (1) Plan.--Not later than 90 days after the date of the 
        enactment of this Act, the Secretary of Education shall submit 
        to the appropriate committees of Congress a report that 
        includes a plan to implement the Department of Defense and 
        Department of Veterans Affairs data integration provision 
        described under section 485B(h)(2) of the Higher Education Act 
        of 1965, as amended by subsection (a)(2).
            (2) Follow-up report.--If the Secretary of Education has 
        not implemented the Department of Defense and Department of 
        Veterans Affairs data integration provision described under 
        section 485B(h)(2) of the Higher Education Act of 1965, as 
        amended by subsection (a)(2), by the date that is 1 year after 
        the date of enactment of this Act, the Secretary of Education 
        shall submit, by such date, a report that includes an 
        explanation of why such provision has not been implemented.

SEC. 488. COMPETENCY-BASED EDUCATION DEMONSTRATION PROGRAM.

    Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by 
inserting after section 486A the following:

``SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRATION PROGRAM.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to allow a demonstration program that is monitored by 
        the Secretary to explore ways of delivering education and 
        disbursing student financial aid that are based on 
        demonstrating competencies rather than credit hours;
            ``(2) to potentially lower the cost of postsecondary 
        education and reduce the time needed to attain a postsecondary 
        degree; and
            ``(3) to help determine--
                    ``(A) the specific statutory and regulatory 
                requirements that should be modified to provide greater 
                access to high-quality competency-based education 
                programs, which may be independent of, or combined 
                with, traditional credit hour or clock hour programs;
                    ``(B) the most effective means of delivering 
                competency-based education; and
                    ``(C) the appropriate level and distribution 
                methodology of Federal assistance for students enrolled 
                in competency-based education.
    ``(b) Definitions.--In this section:
            ``(1) Competency-based education.--The term `competency-
        based education' means an academic program that--
                    ``(A) uses direct assessment of learning for any of 
                its components as a substitute for traditional 
                coursework measured in credit-hours; and
                    ``(B) upon successful completion, results in the 
                attainment of a 2-year or 4-year postsecondary degree 
                or certificate.
            ``(2) Eligible entity.--The term `eligible entity' means 
        any of the following:
                    ``(A) An institution of higher education, as 
                defined in section 101, that is eligible to participate 
                in programs under this title.
                    ``(B) A consortia of institutions of higher 
                education that meet the requirements in subparagraph 
                (A).
    ``(c) Demonstration Programs Authorized.--
            ``(1) In general.--The Secretary shall carry out a 
        competency-based education demonstration program under which 
        the Secretary selects, in accordance with subsection (e), 
        eligible entities to participate and receive waivers described 
        in paragraph (2), in order to enable the eligible entities to 
        offer competency-based education programs.
            ``(2) Waivers.--
                    ``(A) In general.--The Secretary may waive, for an 
                eligible entity participating in the demonstration 
                program under this section, any requirement of 
                subsections (a) and (f) of section 481 as such 
                subsections relate to requirements under this Act for a 
                minimum number of weeks of instruction (including any 
                regulation promulgated under such subsections).
                    ``(B) Additional requirements eligible for 
                waiver.--
                            ``(i) In general.--In addition to any 
                        waiver authorized under subparagraph (A), the 
                        Secretary may waive any requirements described 
                        in clause (ii) for an eligible entity that 
                        requests such a waiver in the application 
                        submitted under subsection (d), if--
                                    ``(I) the Secretary determines that 
                                the eligible entity has proposed a 
                                high-quality plan for competency-based 
                                education that requires such waiver;
                                    ``(II) the eligibility entity has 
                                provided equivalent metrics to each of 
                                the requirements described in clause 
                                (ii) for which the eligible entity is 
                                seeking a waiver; and
                                    ``(III) the Secretary has certified 
                                that all requirements being waived have 
                                such high-quality equivalents.
                            ``(ii) Description of additional 
                        requirements.--Requirements described in this 
                        clause are requirements under this part, part 
                        F, or title I (including any regulations 
                        promulgated under such parts or title) that 
                        inhibits the operation of competency-based 
                        education, related to--
                                    ``(I) minimum weeks of 
                                instructional time;
                                    ``(II) credit hour or clock hour 
                                equivalencies; and
                                    ``(III) the definitions of the 
                                terms `academic year', `full-time 
                                student', `standard term', `non-term', 
                                `non-standard term', `term', 
                                `satisfactory academic progress', 
                                `educational activity', `program of 
                                study', and `payment period'.
    ``(d) Application.--
            ``(1) In general.--Each eligible entity desiring to 
        participate in the demonstration program under this section 
        shall submit to the Secretary an application at such time, in 
        such manner, and containing such information as the Secretary 
        shall require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall include--
                    ``(A) a description of the competency-based 
                education to be offered by the eligible entity through 
                the demonstration program;
                    ``(B) a detailed description of the proposed 
                academic delivery, business, and financial models to be 
                used in the program, including brief explanations of 
                how the program's approach would result in the 
                achievement and assessment of competencies and how the 
                approach would differ from standard credit hour 
                approaches;
                    ``(C)(i) a summary of the evidence-based analysis 
                of the financial impact of the proposed program on the 
                institution, its prospective students, and the Federal 
                government; and
                    ``(ii) a written assurance that--
                            ``(I) the summary presented to the 
                        Secretary is a good-faith representation of all 
                        the information available to the institution at 
                        the time of the application; and
                            ``(II) all material internal analyses and 
                        supporting data used in the summary shall be 
                        retained and made available to the Secretary 
                        upon request for a period of not less than 5 
                        years after the approval of the proposed 
                        program;
                    ``(D) a written assurance that the program fully 
                conforms to the institution's academic policies, and 
                that any degrees or certificates conferred through the 
                program shall be equivalent to the institution's 
                traditional degrees or certificates;
                    ``(E) documentation of approval of the competency-
                based demonstration program from a regional accrediting 
                agency or association;
                    ``(F) a description of the statutory and regulatory 
                requirements described in subsection (c)(2) for which a 
                waiver is sought, the reasons for which each such 
                waiver is sought, and how the institution proposes to 
                mitigate any risks to students or the Federal 
                Government as a result of the waiver;
                    ``(G) a description of the entity's proposal for 
                determining a student's Federal student aid eligibility 
                under this title and awarding and distributing such 
                aid, including safeguards to ensure that students are 
                making satisfactory progress that warrants disbursement 
                of such aid, and an explanation of how the proposal 
                ensures that the program does not require the 
                expenditure of additional Federal funding beyond what 
                the student is eligible for;
                    ``(H) a description of the students to whom 
                competency-based education will be offered, including 
                an assurance that the eligible entity will include a 
                minimum of 100 and a maximum of 2,000 eligible students 
                as part of the program;
                    ``(I) a description of the goals the entity hopes 
                to achieve through the use of competency-based 
                education, including evidence-based estimates of cost 
                savings to the institution, students, and the Federal 
                Government as a direct result of the delivery method 
                being proposed;
                    ``(J) a description of how the entity plans to 
                maintain program quality and integrity, consistent with 
                part H;
                    ``(K) an assurance that the entity will fully 
                cooperate with the ongoing evaluations of the 
                demonstration program under subsection (f)(3);
                    ``(L) an assurance that the entity will not require 
                the expenditure of additional Federal funding to 
                implement the proposed program;
                    ``(M) an evidence-based estimate of the percentage 
                of students the program would enroll whom the 
                institution estimates will successfully complete the 
                program, satisfy all academic requirements, and attain 
                the academic credential the program is intended to 
                confer;
                    ``(N) a written assurance that the eligible entity 
                will comply with section 444 of the General Education 
                Provisions Act (commonly referred to as the `Family 
                Educational Rights and Privacy Act of 1974') by 
                agreeing to obtain a signed consent form from each 
                student who will participate in the program, before the 
                student enrolls in the program or receives Federal 
                student financial aid under this title for the program, 
                that will allow the Secretary to conduct an evaluation 
                of the program's effectiveness, including its impact on 
                post-enrollment earnings through matching data with 
                other Federal agencies, as long as--
                            ``(i) no information from the student's 
                        education record would be permanently stored 
                        with any other Federal agency; and
                            ``(ii) no student's personally identifiable 
                        information would be publicly disclosed; and
                    ``(O) such other information as the Secretary may 
                require.
    ``(e) Selection.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Higher Education Affordability Act, the 
        Secretary shall select not more than 15 eligible entities to 
        participate in the demonstration program under this section.
            ``(2) Considerations.--In selecting eligible entities to 
        participate in the demonstration program under this section, 
        the Secretary shall--
                    ``(A) not select any eligible entity for which the 
                estimated percentage of students in the proposed 
                program expected to complete their degree, as provided 
                in the application under subsection (d)(2)(O), is lower 
                than the percentage of students enrolled in traditional 
                academic programs at the institution that complete 
                their degree or program of study;
                    ``(B) consider the number and quality of 
                applications received;
                    ``(C) consider the eligible entity's--
                            ``(i) demonstrated quality, as measured 
                        through outcome-based metrics of student 
                        success;
                            ``(ii) financial responsibility;
                            ``(iii) administrative capability, 
                        including the ability to successfully execute 
                        the program as described;
                            ``(iv) commitment and ability to 
                        effectively finance a demonstration program as 
                        proposed;
                            ``(v) demonstrated administrative 
                        capability and expertise to evaluate learning 
                        based on measures other than credit hours or 
                        clock hours;
                            ``(vi) commitment to allow random 
                        assignment and collection of school records of 
                        eligible program applicants, in full compliance 
                        with section 444 of the General Education 
                        Provisions Act (commonly referred to as the 
                        `Family Educational Rights and Privacy Act of 
                        1974'), if necessary, in order to allow for the 
                        evaluation of program impacts described in 
                        subsection (f)(2)(B); and
                            ``(vii) ability to translate competencies 
                        to traditional credit hours to help facilitate 
                        the ability of students participating in the 
                        demonstration project to transfer to another 
                        institution of higher education if the student 
                        so desires;
                    ``(D) ability to offer a financial guarantee to 
                assume all Federal loans made under part D to students 
                who demonstrate that the education received did not 
                lead to improved employment prospects;
                    ``(E) consider the Department's capacity to oversee 
                and monitor each eligible institution's participation; 
                and
                    ``(F) ensure the participation of a diverse group 
                of institutions of higher education (including 
                institutions within eligible entities described in 
                subparagraph (B) or (C) of subsection (b)(2)) with 
                respect to size, mission, and geographic distribution 
                of the institutions.
            ``(3) Notification.--Not later than 180 days after the date 
        of enactment of the Higher Education Affordability Act, the 
        Secretary shall make available to the authorizing committees, 
        and to the public through the Department's website, a list of 
        the eligible entities selected to participate in the 
        demonstration program under this section. Such list shall 
        include, for each such eligible entity, the specific statutory 
        and regulatory requirements that the Secretary is waiving for 
        the program and a description of the competency-based education 
        courses to be offered.
    ``(f) Evaluations and Reports.--
            ``(1) Eligible entity report.--Each eligible entity that 
        participates in the demonstration program under this section 
        shall prepare and submit to the Secretary an annual report that 
        includes all of the following:
                    ``(A) For each student participating in the 
                competency-based education program offered by the 
                eligible entity--
                            ``(i) the number of postsecondary credit 
                        hours the student had earned prior to 
                        enrollment in the program;
                            ``(ii) the period of time between the 
                        admission of the student in the program and the 
                        first assessment of the student's learning;
                            ``(iii) the number of credits or 
                        competencies and progress towards completion 
                        that the student acquired through the program 
                        and the period of time during which the student 
                        acquired such credits, competencies, and made 
                        such progress;
                            ``(iv) an identification of whether the 
                        student is participating in the program and 
                        only receiving competency-based education or 
                        participating in the program while also taking 
                        courses offered in credit or clock hours;
                            ``(v) the percentage of assessments of 
                        student learning that the student passed on the 
                        first attempt, during the period of the 
                        student's participation in the program; and
                            ``(vi) the percentage of assessments of 
                        student learning that the student passed on the 
                        second attempt, and the average period of time 
                        between the student's first and second 
                        attempts, during the period of the student's 
                        participation in the program.
                    ``(B) The rates of retention in the program for 
                participating students, for each 6-month period of the 
                program.
                    ``(C) Graduation rates for participating students 
                and the average period of time for degree completion by 
                a student participating in the program, disaggregated 
                based on student status as a first-year, second-year, 
                third-year, or fourth-year student when the student 
                enrolled in the program and status with respect to 
                participating in courses offered in credit or clock 
                hours while also participating in competency-based 
                education.
                    ``(D) Issues related to awarding and disbursing 
                student financial assistance for competency-based 
                education.
                    ``(E) The job placement rates of all students who 
                participated in the program, as measured in the second 
                fiscal year after the completion of the program. The 
                Secretary may offer guidance for the purposes of making 
                this calculation.
                    ``(F) An analysis of the mean debt to earnings 
                ratio, and the mean debt to discretionary earnings 
                ratio, of the students who participated in the program, 
                as measured in the second fiscal year after the 
                completion of the program--
                            ``(i) in the aggregate and disaggregated 
                        for students who earned the degree or 
                        credential and students who did not earn the 
                        degree or credential; and
                            ``(ii) calculated for each quintile of 
                        students, based on the salary of the students 
                        after participation in the program.
                    ``(G) A compilation of quality reviews by students 
                who participated in the program.
                    ``(H) Such other information as the Secretary may 
                require.
            ``(2) Evaluation.--The Secretary shall--
                    ``(A) in the aggregate, annually evaluate the 
                program offered by each eligible entity participating 
                in the demonstration program under this section to 
                review--
                            ``(i) the extent to which the eligible 
                        entity has met the goals set forth in its 
                        application under subsection (d), including the 
                        progress of the eligible entity based on the 
                        measures of program quality assurance;
                            ``(ii) the number and types of students 
                        participating in the competency-based education 
                        programs offered, including the progress of 
                        participating students toward recognized 
                        degrees and the extent to which participation, 
                        postsecondary education retention, 
                        postsecondary education completion, employment 
                        after graduation, and debt repayment increased 
                        or decreased for participating students as 
                        compared to the general postsecondary education 
                        student population;
                            ``(iii) obstacles related to student 
                        financial assistance for competency-based 
                        education; and
                            ``(iv) the extent to which statutory or 
                        regulatory requirements not waived under the 
                        demonstration program present difficulties for 
                        students or institutions of higher education; 
                        and
                    ``(B) acting through the Director of the Institute 
                of Education Sciences--
                            ``(i) evaluate the implementation and 
                        impact of the activities allowed under this 
                        section; and
                            ``(ii) identify promising practices 
                        regarding competency-based education and 
                        disseminate research on these practices.
            ``(3) Annual report.--The Secretary shall annually prepare 
        and submit to the authorizing committees a report that includes 
        the following:
                    ``(A) The evaluations of the demonstration programs 
                required under paragraph (3).
                    ``(B) The number and types of students receiving 
                assistance under this title who participate in 
                competency-based education programs supported under 
                this section.
                    ``(C) The postsecondary education retention and 
                completion rates of students participating in such 
                programs.
                    ``(D) The job placement rates of participating 
                students, as measured 2 fiscal years after the 
                completion of such programs.
                    ``(E) An analysis of the mean debt to earnings 
                ratio, and the mean debt to discretionary earnings 
                ratio of the students who participated in the program, 
                as measured in the second fiscal year after the 
                completion of the program--
                            ``(i) in the aggregate and disaggregated 
                        for students who earned the degree or 
                        credential and students who did not the degree 
                        or credential; and
                            ``(ii) calculated for each quintile of 
                        students, based on the salary of the students 
                        after participation in the program.
                    ``(F) Any statutory changes the Secretary would 
                recommend that are designed to support and enhance the 
                expansion of competency-based education.
                    ``(G) Other such measures as determined by the 
                Secretary.
    ``(g) Oversight.--In conducting the demonstration program under 
this section, the Secretary shall, on a continuing basis--
            ``(1) ensure that eligible entities participating in the 
        program comply with the requirements of this title (other than 
        the requirements that are waived under subsection (c)(2));
            ``(2) provide technical assistance;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating eligible entities; and
            ``(4) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities 
        regarding the program.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the five succeeding fiscal years.''.

SEC. 489. PROGRAM PARTICIPATION AGREEMENTS.

    (a) Sense of the Senate Regarding Incentive Compensation.--It is 
the sense of the Senate that--
            (1) incentive compensation is an inappropriate mechanism in 
        the delivery of higher education for institutions of higher 
        education wishing to participate in programs under title IV of 
        the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.); and
            (2) the ban on incentive compensation under section 
        487(a)(20) of the Higher Education Act of 1965 (20 U.S.C. 
        1094(a)(20)), as amended by subsection (b), is intended to 
        preclude its use by institutions wishing to participate in such 
        programs, at any point in the recruitment, enrollment, 
        education, or employment placement of students.
    (b) Amendments.--Section 487 (20 U.S.C. 1094) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (19), by inserting ``housing 
                facilities,'' after ``libraries,''; and
                    (B) by striking paragraph (20) and inserting the 
                following:
            ``(20)(A)(i) The institution or any third party acting on 
        the institution's behalf, including an institution affiliate or 
        service provider to the institution, will not provide any 
        commission, bonus, or other incentive payment to any person or 
        entity at any phase of the academic process based directly or 
        indirectly on success in--
                    ``(I) securing enrollments or securing or awarding 
                financial aid;
                    ``(II) performance in educational coursework;
                    ``(III) graduation;
                    ``(IV) job placement; or
                    ``(V) any other academic facet of a student's 
                enrollment in an institution of higher education.
            ``(ii) The requirements of subparagraph (A) shall not apply 
        to the recruitment of foreign students residing in foreign 
        countries who are not eligible to receive Federal student 
        assistance.
            ``(B) The institution affirmatively acknowledges that the 
        provision of incentive compensation to employees of 
        institutions, institution affiliates, or service providers 
        retained by the institution at any point in the recruitment, 
        enrollment, education, or employment placement of students is a 
        prohibited activity under subparagraph (A)(i).
            ``(C) The institution will provide, upon hiring an employee 
        or contracting with a service provider, and not less than once 
        per calendar year, official notice, on a form developed by the 
        Secretary, to employees and service providers (and employees of 
        service providers) contracted by the institution of the 
        statutory and regulatory requirements pursuant to this section.
            ``(D) The institution will not enter into any contract with 
        a third party acting on its behalf, including institution 
        affiliates or service providers, that contains a revenue-
        sharing component premised in full or in any part on any 
        practice described in subparagraph (A)(i).'';
                    (C) by striking paragraph (24) and inserting the 
                following:
            ``(24) The institution certifies that the institution--
                    ``(A) has designated an appropriate staff person, 
                who may also be a coordinator for other programs, as a 
                single point of contact to assist homeless children and 
                youths (as such term is defined in section 725 of the 
                McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11434a)) and foster care children and youth in 
                accessing and completing postsecondary education;
                    ``(B) posts public notice about student financial 
                assistance and other assistance available to homeless 
                children and youths and foster care children and youth, 
                including their eligibility as independent students 
                under subparagraphs (B) and (H) of sections 480(d)(1);
                    ``(C) has developed a plan for how homeless 
                children and youths and foster care children and youth 
                can access housing resources during and between 
                academic terms, through means that may include access 
                to on-campus housing during school breaks and a list of 
                housing resources in the community that provide short-
                term housing; and
                    ``(D) has included in the institution's application 
                for admission questions (to be answered voluntarily) 
                regarding the applicant's status as a homeless child or 
                youth or foster care child or youth, which the 
                applicant can voluntarily choose to answer for the 
                limited purpose of being provided information about 
                financial aid or any other available assistance.'';
                            (i) in paragraph (25)(A)(ii), by striking 
                        ``subsection (e)'' and inserting ``subsection 
                        (d)'';
                            (ii) in paragraph (27), by striking 
                        ``subsection (h)'' and inserting ``subsection 
                        (g)'';
                    (D) by striking paragraph (28) and inserting the 
                following:
            ``(28)(A) The institution shall--
                    ``(i) upon the request of a private educational 
                lender, acting in connection with an application 
                initiated by a borrower for a private education loan in 
                accordance with section 128(e)(3) of the Truth in 
                Lending Act, provide--
                            ``(I) certification to such private 
                        educational lender--
                                    ``(aa) that the student who 
                                initiated the application for the 
                                private education loan, or on whose 
                                behalf the application was initiated, 
                                is enrolled or is accepted for 
                                enrollment at the institution;
                                    ``(bb) of such student's cost of 
                                attendance at the institution as 
                                determined under part F of this title; 
                                and
                                    ``(cc) of the difference between--
                                            ``(AA) the cost of 
                                        attendance at the institution; 
                                        and
                                            ``(BB) the student's 
                                        estimated financial assistance 
                                        received under this title, if 
                                        the student pursued such 
                                        assistance, and other 
                                        assistance known to the 
                                        institution, as applicable; or
                            ``(II) in the case of a private education 
                        loan that the institution may not certify 
                        because the private education loan does not 
                        meet the requirements described in subsection 
                        (D), provide notice to the private educational 
                        lender of the institution's refusal to certify 
                        the private education loan; and
                    ``(ii) provide the certification described in 
                clause (i)(I), or notice of the refusal to provide 
                certification described in clause (i)(II), as the case 
                may be, or notify the creditor that the institution has 
                received the request for certification and will need 
                additional time to comply with the certification 
                request--
                            ``(I) within 15 business days of receipt of 
                        such certification request; and
                            ``(II) only after the institution has 
                        completed the activities described in 
                        subparagraph (B).
            ``(B) The institution shall, upon receipt of a 
        certification request described in subparagraph (A)(i), and 
        prior to providing the certification under subparagraph 
        (A)(i)(I) or providing notice of the refusal to provide 
        certification under subparagraph (A)(i)(II)--
                    ``(i) determine whether the student who initiated 
                the application for the private education loan, or on 
                whose behalf the application was initiated, has applied 
                for and exhausted the Federal financial assistance 
                available to such student under this title and inform 
                the student accordingly; and
                    ``(ii) provide the student whose loan application 
                has prompted the certification request by a private 
                education lender, as described in subparagraph (A)(i), 
                with the following information and disclosures:
                            ``(I) The availability of, and the 
                        student's potential eligibility for, Federal 
                        financial assistance under this title, 
                        including the explanation of the benefits 
                        provided under Federal student loans developed 
                        by the Secretary under section 483A(b).
                            ``(II) The student's ability to select a 
                        private educational lender of the student's 
                        choice.
                            ``(III) The impact of a proposed private 
                        education loan on the student's potential 
                        eligibility for other financial assistance, 
                        including Federal financial assistance under 
                        this title.
                            ``(IV) The student's right to accept or 
                        reject a private education loan within the 30-
                        day period following a private educational 
                        lender's approval of a student's loan 
                        application and the right of a borrower of a 
                        private education loan to cancel the loan 
                        within a 3-day period, in accordance with 
                        paragraphs (6) and (7) of section 128(e) of the 
                        Truth in Lending Act.
            ``(C) For purposes of this paragraph, the term `private 
        educational lender' has the meaning given such term in section 
        140 of the Truth in Lending Act (15 U.S.C. 1650).
            ``(D) In the case of a private education loan that includes 
        a cosigner, the institution shall not provide certification to 
        a private educational lender under this paragraph unless the 
        private educational lender agrees to send a statement to the 
        borrower's cosigner, annually notifying the cosigner of the 
        terms, conditions, and status of such private education 
        loan.''; and
                    (E) by adding at the end the following:
            ``(30)(A) The institution--
                    ``(i) shall not include a predispute arbitration 
                agreement in any contract with a student or prospective 
                student for enrollment at the institution; and
                    ``(ii) shall agree that, in any case where a 
                contract for enrollment at the institution entered into 
                by a student before the date of enactment of the Higher 
                Education Affordability Act included a predispute 
                arbitration agreement, such agreement shall be invalid 
                and unenforceable by the institution.
            ``(B) In this paragraph, the term `predispute arbitration 
        agreement' means any agreement to arbitrate a dispute that had 
        not yet arisen at the time of the making of the agreement.
            ``(31) The institution will provide the Secretary with any 
        information that the Secretary requests in order to meet the 
        default prevention requirements of section 435(a)(7).
            ``(32)(A) If the institution has a student default risk for 
        a fiscal year, as calculated by the Secretary, of 0.1 or 
        greater, the institution will, for such year--
                    ``(i) provide an individual accepted for enrollment 
                at the institution with a waiting period, beginning on 
                the date that the individual receives notification of 
                the acceptance and lasting for not less than 2 weeks, 
                before the individual is required to enroll in the 
                institution, pay tuition charges, or sign a master 
                promissory note for a loan under this title, in order 
                to give the individual time to consider, and compare 
                among postsecondary options, program costs at the 
                institution and employment prospects upon completion of 
                a program of study;
                    ``(ii) ensure that the receipt of financial aid, 
                incentives, or other benefits is not made contingent on 
                an individual confirming enrollment before the end of 
                the individual's waiting period;
                    ``(iii) inform the individual, in writing and in a 
                manner determined by the Secretary at the time of the 
                acceptance notification, of--
                            ``(I) the individual's right to the 2-week 
                        waiting period under clause (i) beginning on 
                        the date that the individual receives 
                        notification of the acceptance; and
                            ``(II) the reason why the institution is 
                        required to provide such waiting period;
                    ``(iv) notify an individual accepted for enrollment 
                at the institution of all financial aid determinations 
                by not less than 1 week before the enrollment 
                confirmation deadline, if all requested application 
                forms are received from the individual on time; and
                    ``(v) disclose to an individual accepted for 
                enrollment, in a manner determined by the Secretary, 
                that the individual may file a complaint through the 
                complaint tracking system established under section 161 
                if the individual believes that the institution has 
                violated any provision of this paragraph.
            ``(B) If an institution described in subparagraph (A) fails 
        to meet the requirements of this paragraph, the institution 
        shall be subject to a civil penalty in accordance with section 
        489A.
            ``(C) Notwithstanding subparagraph (A), the Secretary may, 
        after providing notice and an opportunity to comment, elect to 
        replace the use of the student default risk percentage 
        threshold established under subparagraph (A) with a loan 
        repayment rate threshold calculated in accordance with section 
        483D(b).
            ``(33) In the case of an institution that enrolls during an 
        academic year more than 100 students who are veterans, the 
        institution shall certify that the institution has developed 
        and implemented a plan to ensure the success of veterans at 
        that institution. To the extent practicable, the institution 
        shall make the plan, and associated policies, public and 
        accessible to students who are veterans. Such plan shall 
        include the following:
                    ``(A) The designation of certain faculty or staff 
                at the institution who will serve as a point of contact 
                for veterans--
                            ``(i) within campus offices, including the 
                        admissions office; and
                            ``(ii) during any orientation process for 
                        newly enrolled students.
                    ``(B) The establishment of a working group that 
                will be responsible for veterans issues.
                    ``(C) A description of disability services that are 
                available to meet the needs of disabled students who 
                are veterans.
                    ``(D) A plan for how the institution will identify 
                students who are veterans through the application 
                process, or through other processes, to provide better 
                assistance in the receipt of educational assistance 
                under laws administered by the Secretary of Veterans 
                Affairs or the Secretary of Defense.
                    ``(E) A description of how the institution will 
                evaluate and maximize the number of credits students 
                can receive from military training and service.
            ``(34) The institution, and the officers at the 
        institution, will not make any substantial misrepresentation, 
        as described in section 489A(a)(1)(A).
            ``(35) The institution will adopt policies regarding 
        academic leaves of absence, readmission, and dismissal for 
        psychiatric reasons that are comparable to such policies for 
        physical health and other medical reasons, including policies 
        that include the same guarantees of due process and appeal.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)(i), by striking 
                        ``available'' and inserting ``made publicly 
                        available and provided''.
                            (ii) by striking subparagraphs (F) and (G);
                            (iii) by redesignating subparagraphs (H) 
                        and (I) as subparagraphs (F) and (G), 
                        respectively; and
                            (iv) in subparagraph (F), as redesignated 
                        by clause (iii), by striking ``under paragraph 
                        (3)(B)'' and inserting ``on the institution of 
                        higher education under section 489A''; and
                    (B) by striking paragraph (3); and
                    (C) by redesignating paragraphs (4) through (7) as 
                paragraphs (3) through (6), respectively;
            (3) by striking subsection (d);
            (4) by redesignating subsections (e) through (j) as 
        subsections (d) through (i), respectively; and
            (5) in subsection (f)(1) (as redesignated by paragraph 
        (4)), by striking ``subsection (e)(2)'' and inserting 
        ``subsection (d)(2)''.
    (c) Effective Date Regarding Private Loan Certification.--The 
amendment made by subsection (b)(1)(D) shall take effect on the 
effective date of the regulations described in section 1012(b).

SEC. 490. CIVIL PENALTIES.

    Part G of title IV is further amended by inserting after section 
489 the following:

``SEC. 489A. CIVIL PENALTIES AND OTHER REMEDIES.

    ``(a) Definitions.--In this section:
            ``(1) Substantial misrepresentation or other serious 
        violation.--The term `substantial misrepresentation or other 
        serious violation' means any of the following:
                    ``(A) A substantial misrepresentation regarding--
                            ``(i) the nature of the educational program 
                        of an institution of higher education;
                            ``(ii) the financial charges of the 
                        institution;
                            ``(iii) the space availability in a program 
                        of the institution for which a student is 
                        considering enrollment;
                            ``(iv) the admission requirements of the 
                        institution;
                            ``(v) the transferability of credits from 
                        the institution;
                            ``(vi) whether a program of the institution 
                        meets the necessary standards to qualify 
                        students to sit for licensing examinations, or 
                        obtain certification required as a precondition 
                        for employment, in the State in which the 
                        students reside;
                            ``(vii) the passage rates of students at 
                        the institution in obtaining certification 
                        requirements;
                            ``(viii) the passage rates of students who 
                        sit for licensing examinations; or
                            ``(ix) the employability of the graduates 
                        of the institution.
                    ``(B) Failure of an institution subject to the 
                requirements of section 487(a)(32) to comply with such 
                section.
                    ``(C) A knowing and willful misuse of Federal 
                student aid from any source.
                    ``(D) A violation of section 487(a)(20).
                    ``(E) A violation of the default manipulation 
                regulations promulgated by the Secretary under section 
                435(m)(3).
                    ``(F) Failure to comply with the program review 
                process described in section 498A, including any 
                disclosure requirement described in paragraph (2)(C) or 
                (5) of section 498A(b).
                    ``(G) A violation of the program integrity 
                regulations promulgated by the Secretary under this 
                Act.
                    ``(H) A violation of this Act that the Secretary 
                has determined, by regulation, to be a serious 
                violation for purposes of this section.
            ``(2) Officer of an institution of higher education.--The 
        term `officer of an institution of higher education' includes 
        the president, chief executive officer, and chief financial 
        officer of an institution of higher education or their 
        equivalents.
    ``(b) Sanctions for Substantial Misrepresentations or Serious 
Violations.--
            ``(1) Civil penalties.--
                    ``(A) In general.--The Secretary may impose a civil 
                penalty upon an eligible institution upon making a 
                determination, after reasonable notice and opportunity 
                for a hearing, that an eligible institution has engaged 
                in a substantial misrepresentation or other serious 
                violation.
                    ``(B) Amount of civil penalties.--A civil penalty 
                imposed for a violation under subparagraph (A) shall be 
                not less than $100,000 or--
                            ``(i) in the case of a first violation, an 
                        amount equal to the product of $1,000,000 
                        multiplied by the institution's student default 
                        risk, whichever is larger;
                            ``(ii) in the case of a second violation, 
                        an amount equal to the product of $2,000,000 
                        multiplied by the institution's student default 
                        risk, whichever is larger; and
                            ``(iii) in the case of a third or 
                        subsequent violation, an amount equal to the 
                        product of $3,000,000 multiplied by the 
                        institution's student default risk, whichever 
                        is larger.
                    ``(C) Treatment of multiple institutions.--For the 
                purpose of determining the number of violations for 
                subparagraph (B), any violation by a particular 
                institution will accrue against all identification 
                codes used by the Office of Postsecondary Education to 
                designate campuses and institutions affiliated with the 
                institution, and within the period of participation for 
                the institution, as defined in section 668.13(b) of 
                title 34, Code of Federal Regulations, or any successor 
                regulation.
    ``(c) Sanctions for Other Violations of This Title.--Upon 
determination, after reasonable notice and opportunity for a hearing, 
that an eligible institution has engaged in a violation of any other 
provision of this title, including the failure to carry out any 
provision of this title, that is not a significant misrepresentation or 
other serious violation, the Secretary may impose a civil penalty upon 
such institution of not more than $100,000 (subject to such adjustments 
for inflation as may be prescribed in regulation) for each such 
violation.
    ``(d) Civil Penalties and Sanctions for Officers of Institutions.--
Upon determination, after reasonable notice and an opportunity for a 
hearing on the record, that an officer of an institution of higher 
education that participates in a program under this title has knowingly 
and willfully, or with gross negligence, violated a provision of this 
title, the Secretary may sanction the officer. Such sanctions may 
include the following:
            ``(1) Prohibiting the institution of higher education that 
        has employed the officer of an institution of higher education 
        and that participates in a program under this title, or any 
        other institution of higher education that participates in a 
        program under this title, from employing the officer, except 
        that any such prohibition under this subsection shall not be 
        for a period of more than 5 years from the date of the 
        determination of the violation.
            ``(2) Assessing a civil penalty against an officer of an 
        institution of higher education who has knowingly and 
        willfully, or with gross negligence, violated a provision of 
        this title, except that any such civil penalty under this 
        subsection shall not be greater than the amount of the 
        officer's compensation for each year for which the violations 
        are determined to have occurred. For purposes of this 
        subparagraph, an officer's compensation shall include proceeds 
        of any sales of stock and any incentive-based compensation 
        (including stock options awarded as compensation) based on 
        information required to be reported to the Secretary or any 
        other Federal agency during the period in which the violations 
        are determined to have occurred.
    ``(e) Limitation, Suspension, or Termination of Eligibility 
Status.--
            ``(1) In general.--Upon determination, after reasonable 
        notice and opportunity for a hearing, that an eligible 
        institution has engaged in a violation of any provision of this 
        title (including the failure to carry out any provision of this 
        title or any regulation prescribed under such provision) or a 
        violation of any applicable special arrangement, agreement, or 
        limitation, the Secretary may limit, suspend, or terminate the 
        participation in any program under this title of an eligible 
        institution, subject to the requirements of paragraph (2).
            ``(2) Suspension procedures.--No period of suspension under 
        this section shall exceed 60 days unless the institution and 
        the Secretary agree to an extension or unless limitation or 
        termination proceedings are initiated by the Secretary within 
        that period of time.
    ``(f) Emergency Action.--
            ``(1) In general.--The Secretary may take an emergency 
        action against an institution, under which the Secretary shall, 
        effective on the date on which a notice and statement of the 
        basis of the action is mailed to the institution (by registered 
        mail, return receipt requested), withhold funds from the 
        institution or its students and withdraw the institution's 
        authority to obligate funds under any program under this title, 
        if the Secretary--
                    ``(A) receives information, determined by the 
                Secretary to be reliable, that the institution is 
                violating any provision of this title, any regulation 
                prescribed under this title, or any applicable special 
                arrangement, agreement, or limitation;
                    ``(B) determines that immediate action is necessary 
                to prevent misuse of Federal funds; and
                    ``(C) determines that the likelihood of loss 
                outweighs the importance of the procedures prescribed 
                in subsection (e) for limitation, suspension, or 
                termination.
            ``(2) Time limitation.--An emergency action described in 
        paragraph (1) shall not exceed 30 days unless limitation, 
        suspension, or termination proceedings are initiated by the 
        Secretary against the institution within that period of time.
            ``(3) Opportunity to show cause.--The Secretary shall 
        provide an institution that is the subject of an emergency 
        action under this subsection an opportunity to show cause, if 
        the institution so requests, that the emergency action is 
        unwarranted and should be lifted.
    ``(g) Lifting of Sanctions.--Notwithstanding any other provision of 
this title, an institution of higher education that has been sanctioned 
by the Secretary under this section or any other provision of this 
title may not have such sanctions lifted until the Secretary has 
conducted a subsequent program review under section 498A and has found 
the institution to be in compliance with this title.
    ``(h) Single Course of Conduct; Compromise Authority and Collection 
of Penalty.--
            ``(1) Same course of conduct.--For purposes of this 
        section, acts and omissions relating to a single course of 
        conduct shall be treated as a single violation.
            ``(2) Compromise authority.--Any civil penalty under this 
        section may be compromised by the Secretary. In determining the 
        amount of such penalty, or the amount agreed upon in 
        compromise, the Secretary shall consider--
                    ``(A) the appropriateness of the penalty to the 
                size of the institution of higher education subject to 
                the determination; and
                    ``(B) the gravity of the violation, failure, or 
                misrepresentation.
    ``(i) Collection of Penalty.--The amount of any penalty under this 
section may be deducted from any sums owing by the United States to the 
institution charged.
    ``(j) Disposition of Amounts Recovered.--
            ``(1) In general.--Amounts collected under this section 
        shall be transferred to the Secretary, who shall determine the 
        distribution of collected amounts, in accordance with 
        paragraphs (2) and (3).
            ``(2) Use for program integrity efforts and program 
        reviews.--
                    ``(A) In general.--For each fiscal year, an amount 
                equal to not more than 50 percent of the amounts 
                recovered or collected under this section--
                            ``(i) shall be available to the Secretary 
                        to carry out program reviews under section 498A 
                        and other efforts by the Secretary related to 
                        program integrity under part H; and
                            ``(ii) may be credited, if applicable, for 
                        that purpose by the Secretary to any 
                        appropriations and funds that are available to 
                        the Secretary for obligation at the time of 
                        collection.
                    ``(B) Supplement not supplant.--Amounts made 
                available under subparagraph (A) shall be used to 
                supplement and not supplant any other amounts available 
                to the Secretary for the purpose described in such 
                subparagraph.
                    ``(C) Availability for funds.--Any amounts 
                collected under this section that are made available 
                under paragraph (2) shall remain available until 
                expended.
            ``(3) Use for student relief fund.--For each fiscal year, 
        an amount equal to not less than 50 percent of the amounts 
        recovered or collected under this section shall be deposited 
        into the Student Relief Fund established under subsection (k).
            ``(4) Report.--The Secretary shall regularly publish, on 
        the website of the Department, a detailed description that 
        includes--
                    ``(A) the amount of funds that were distributed for 
                the purposes described in paragraph (2) and the amount 
                used for the Student Relief Fund under paragraph (3); 
                and
                    ``(B) how funds were distributed among the purposes 
                described in paragraph (2)(A)(i).
    ``(k) Student Relief Fund.--
            ``(1) Establishment.--The Secretary shall establish a 
        Student Relief Fund (referred to in this subsection as the 
        `Fund') that shall be used, subject to the availability of 
        funds, to provide financial relief to any student enrolled in 
        an institution of higher education that--
                    ``(A) has failed to comply with an eligibility 
                requirement under section 101 or 102 or an obligation 
                incurred under the terms of the program participation 
                agreement under section 487; or
                    ``(B) has been sanctioned under subsection (b) or 
                (c).
            ``(2) Determination of relief.--The Secretary, in 
        consultation with Director of the Bureau of Consumer Financial 
        Protection--
                    ``(A) shall determine the manner of relief to be 
                provided under paragraph (1), which may include tuition 
                reimbursement or full or partial loan forgiveness; and
                    ``(B) may issue regulations regarding how the 
                amounts in the Fund will be distributed among students 
                eligible for the funds.
            ``(3) Treatment and availability of funds.--
                    ``(A) Funds that are not government funds.--Funds 
                obtained by or transferred to the Fund shall not be 
                construed to be Government funds or appropriated 
                monies.
                    ``(B) Amounts not subject to apportionment.--
                Notwithstanding any other provision of law, amounts in 
                the Fund shall not be subject to apportionment for 
                purposes of chapter 15 of title 31, United States Code, 
                or under any other authority.
                    ``(C) No fiscal year limitation.--Sums deposited in 
                the Fund shall remain in the Fund and be available for 
                expenditure under this chapter without fiscal year 
                limitation.
            ``(4) Investments.--
                    ``(A) Amounts in fund may be invested.--The 
                Secretary of Education may request the Secretary of the 
                Treasury to invest the portion of the Fund that is not, 
                in the discretion of the Secretary of Education, 
                required to meet the current needs of the Fund.
                    ``(B) Eligible investments.--Investments shall be 
                made by the Secretary of the Treasury in obligations of 
                the United States or obligations that are guaranteed as 
                to principal and interest by the United States, with 
                maturities suitable to the needs of the Fund as 
                determined by the Secretary on the record.
                    ``(C) Interest and proceeds credited.--The interest 
                on, and the proceeds from the sale or redemption of, 
                any obligations held in the Fund shall be credited to 
                the Fund.
            ``(5) Regulations.--The Secretary shall prescribe 
        regulations to implement the requirements of this section 
        within 1 year after the date of enactment of the Higher 
        Education Affordability Act.
            ``(6) Authorization of appropriations.--In addition to 
        funds derived from financial penalties assessed pursuant to 
        subsection (j), there are authorized to be appropriated such 
        sums as may be necessary to carry out this subsection for 
        fiscal year 2015 and each of the five succeeding fiscal years.
    ``(l) State Enforcement.--
            ``(1) In general.--Any violation of subsection (b), 
        including the regulations promulgated under such subsection, 
        shall be a cause of action enforceable by the State, through 
        the attorney general (or the equivalent thereof) of the State, 
        in any district court of the United States in that State or in 
        a State court that is located in that State and that has 
        jurisdiction over the defendant. The State may seek any relief 
        provided under paragraph (4)(B) for such violation, or any 
        remedies otherwise provided under law.
            ``(2) Notice required.--
                    ``(A) In general.--Before initiating any action in 
                a court or other administrative or regulatory 
                proceeding against any institution of higher education 
                as authorized by paragraph (1) to enforce any provision 
                of this subsection, including any regulation 
                promulgated by the Secretary under this subsection, a 
                State attorney general shall timely provide a copy of 
                the complete complaint to be filed and written notice 
                describing such action or proceeding to the Secretary, 
                except as provided in subparagraph (B).
                    ``(B) Emergency action.--If prior notice is not 
                practicable, the State attorney general shall provide a 
                copy of the complete complaint and the notice to the 
                Secretary immediately upon instituting the action or 
                proceeding.
                    ``(C) Contents of notice.--The notification 
                required under this subparagraph shall, at a minimum, 
                describe--
                            ``(i) the identity of the parties;
                            ``(ii) the alleged facts underlying the 
                        proceeding; and
                            ``(iii) whether there may be a need to 
                        coordinate the prosecution of the proceeding so 
                        as not to interfere with any action, including 
                        any rulemaking, undertaken by the Secretary or 
                        another Federal agency.
            ``(3) Regulations.--The Secretary shall prescribe 
        regulations to implement the requirements of this subsection 
        and periodically provide guidance in order to further 
        coordinate actions with the State attorneys general.
            ``(4) Preservation of state authority.--
                    ``(A) State claims.--Nothing in this subsection 
                shall be construed as altering, limiting, or affecting 
                the authority of a State attorney general or any other 
                regulatory or enforcement agency or authority to bring 
                an action or other regulatory proceeding arising solely 
                under the law in effect in that State.
                    ``(B) Relief.--
                            ``(i) In general.--Relief under this 
                        subsection may include, without limitation--
                                    ``(I) rescission or reformation of 
                                contracts;
                                    ``(II) refund of moneys or return 
                                of real property;
                                    ``(III) restitution;
                                    ``(IV) disgorgement or compensation 
                                for unjust enrichment;
                                    ``(V) payment of damages or other 
                                monetary relief pursuant to the 
                                requirements of paragraph (2);
                                    ``(VI) public notification 
                                regarding the violation, including the 
                                costs of notification; and
                                    ``(VII) limits on the activities or 
                                functions of the person.
                            ``(ii) Exclusion.--Relief under this 
                        subsection shall not include the ability to 
                        suspend or terminate the eligibility status of 
                        an institution of higher education for programs 
                        under this title.''.

SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

    Section 491(k) (20 U.S.C. 1098(i)) is amended by striking ``2015'' 
and inserting ``2020''.

SEC. 492. INCOME-BASED REPAYMENT.

    (a) In General.--Section 493C of the Higher Education Act of 1965 
(20 U.S.C. 1098e) is amended to read as follows:

``SEC. 493C. INCOME-BASED REPAYMENT.

    ``(a) Definitions.--In this section:
            ``(1) Eligible loan.--The term `eligible loan' means any 
        outstanding loan of a borrower that is made, insured, or 
        guaranteed under part B or part D, except that the term does 
        not include--
                    ``(A) any such loan that is in default;
                    ``(B) any PLUS loan made, insured, or guaranteed 
                under section 428, or any Federal Direct PLUS Loan, 
                made to a parent borrower; or
                    ``(C) any consolidation loan made, insured, or 
                guaranteed under section 428C, or any Federal Direct 
                Consolidation Loan, that repaid a loan described in 
                subparagraph (B).
            ``(2) Partial financial hardship.--The term `partial 
        financial hardship', when used with respect to a borrower, 
        means that--
                    ``(A) for such borrower--
                            ``(i) the annual amount due on the total 
                        amount of eligible loans made to a borrower as 
                        calculated under the standard repayment plan 
                        under section 428(b)(9)(A)(i) or 455(d)(1)(A), 
                        based on a 10-year repayment period; exceeds
                            ``(ii) 10 percent of the result obtained by 
                        calculating, on an annual basis, the amount by 
                        which--
                                    ``(I) the borrower's, and the 
                                borrower's spouse's (if applicable), 
                                adjusted gross income; exceeds
                                    ``(II) 150 percent of the poverty 
                                line; or
                    ``(B) the borrower is considered 150 days or more 
                days delinquent on one or more eligible loans.
    ``(b) Income-Based Repayment Program Authorized.--Notwithstanding 
any other provision of this Act, the Secretary shall carry out a 
program under which--
            ``(1) a borrower of any eligible loan may elect to 
        participate in the income-based repayment plan if the borrower 
        has a partial financial hardship as of the time the borrower 
        makes the election--
                    ``(A) whether or not the borrower's loan has been 
                submitted to a guaranty agency for default aversion or 
                had been in default previously; and
                    ``(B) whether or not the borrower is, at the time 
                of the election, enrolled in another repayment plan, 
                including the income contingent repayment plan, income-
                sensitive repayment plan, or another repayment plan 
                based on income eligibility (except that in the case of 
                a borrower who is enrolled in the income contingent 
                repayment plan and has a Federal Direct Consolidation 
                Loan that repaid a Federal Direct PLUS Loan, that 
                Federal Direct Consolidation Loan shall not be an 
                eligible loan for purposes of this section);
            ``(2) after selection of the income-based repayment plan, 
        and for the remaining period of the borrower's loans unless the 
        borrower elects a different repayment method, the borrower's 
        aggregate monthly payment for all such loans shall not exceed 
        the result described in subsection (a)(2)(A)(ii), as calculated 
        on an annual basis, divided by 12;
            ``(3) the holder of such a loan shall apply the borrower's 
        monthly payment under this subsection first toward interest due 
        on the loan, next toward any fees due on the loan, and then 
        toward the principal of the loan;
            ``(4) any interest due and not paid under paragraph (3) 
        shall accrue but not be capitalized, except that, in the case 
        of loans under section 428, or Federal Direct Stafford Loans 
        for which interest was subsidized, any interest due and not 
        paid under paragraph (3) shall be paid by the Secretary for a 
        period of not more than 3 years after the date of the 
        borrower's election under paragraph (1) (not including any 
        period during which the borrower is in deferment due to an 
        economic hardship described in section 435(o)); and
            ``(5) any principal due and not paid under paragraph (3) 
        shall be deferred;
            ``(6) a borrower who elects to participate in an income-
        based repayment plan under paragraph (1) and whose eligibility 
        for an income-based repayment plan is verified may participate 
        in the income-based repayment plan during the period of the 
        borrower's loans, even if the borrower no longer has a partial 
        financial hardship;
            ``(7) the amount of time the borrower makes monthly 
        payments under paragraph (2) may exceed 10 years;
            ``(8) the Secretary shall repay or cancel any outstanding 
        balance of principal and interest due on all eligible loans to 
        a borrower who--
                    ``(A) at any time, elected to participate in 
                income-based repayment under paragraph (1); and
                    ``(B) for a period of time prescribed by the 
                Secretary, not to exceed 20 years, meets 1 or more of 
                the following requirements--
                            ``(i) has made reduced monthly payments 
                        under paragraph (2);
                            ``(ii) has made monthly payments of not 
                        less than the monthly amount required under 
                        paragraph (1) of subsection (b), as such 
                        subsection was in effect on the day before the 
                        date of enactment of the Higher Education 
                        Affordability Act;
                            ``(iii) has made monthly payments of not 
                        less than the monthly amount calculated under 
                        section 428(b)(9)(A)(i) or 455(d)(1)(A), based 
                        on a 10-year repayment period, when the 
                        borrower first made the election described in 
                        this subsection;
                            ``(iv) has made payments of not less than 
                        the payments required under a standard 
                        repayment plan under section 428(b)(9)(A)(i) or 
                        455(d)(1)(A) with a repayment period of 10 
                        years;
                            ``(v) has made payments under an income 
                        contingent repayment plan under section 
                        455(d)(1)(D), as in effect on the day before 
                        the date that is 1 year after the date of 
                        enactment of the Higher Education Affordability 
                        Act; or
                            ``(vi) has been in deferment due to an 
                        economic hardship described in section 435(o);
            ``(9) a borrower who is repaying an eligible loan pursuant 
        to income-based repayment may elect, at any time, to terminate 
        repayment pursuant to income-based repayment and repay such 
        loan under another repayment plan; and
            ``(10) the special allowance payment to a lender calculated 
        under section 438(b)(2)(I), when calculated for a loan in 
        repayment under this section, shall be calculated on the 
        principal balance of the loan and on any accrued interest 
        unpaid by the borrower in accordance with this section.
    ``(c) Monthly Loan Payment Determinations.--
            ``(1) Verification process.--
                    ``(A) In general.--The Secretary shall establish 
                procedures for annually determining the borrower's 
                monthly payment amount for income-based repayment, 
                including verification of a borrower's annual income 
                and the annual amount due on the total amount of 
                eligible loans.
                    ``(B) Rule for borrowers who do not provide the 
                additional information.--In the case of a borrower who 
                has selected the income-based repayment plan and who 
                does not submit the borrower's annual income 
                documentation by such date as required under 
                subparagraph (A)--
                            ``(i) until the borrower submits the 
                        required documentation (but in no case for a 
                        period greater than 1 year), the borrower's 
                        monthly payment amount for an eligible loan 
                        shall be the greater of--
                                    ``(I) the monthly payment required 
                                under a standard repayment plan under 
                                section 428(b)(9)(A)(i) or 455(d)(1)(A) 
                                with a repayment period of 10 years for 
                                the loan; and
                                    ``(II) the amount described in 
                                subsection (a)(2)(A)(ii), as calculated 
                                based on the most recent income 
                                documentation provided to the Secretary 
                                by the borrower; and
                            ``(ii) no monthly payments made before the 
                        borrower has submitted the required information 
                        shall be included for purposes of loan 
                        repayment or cancellation under subsection 
                        (b)(8)(B) or the public service loan 
                        forgiveness program under section 455(m).
                    ``(C) Additional procedures to consider.--In 
                addition to the procedures established in this section, 
                the Secretary shall consider, but is not limited to, 
                the procedures established in accordance with section 
                455(e)(1) or in connection with income-sensitive 
                repayment schedules under section 428(b)(9)(A)(iii) or 
                428C(b)(1)(E), as in effect on the day before the date 
                that is 1 year after the date of enactment of the 
                Higher Education Affordability Act.
            ``(2) Special rule for married borrowers filing 
        separately.--In the case of a married borrower who files a 
        separate Federal income tax return, the Secretary shall 
        calculate the amount of the borrower's income-based repayment 
        under this section solely on the basis of the borrower's 
        student loan debt and adjusted gross income.
    ``(d) Automatic Enrollment for Delinquent Borrowers.--
            ``(1) In general.--The Secretary shall establish procedures 
        for automatically enrolling delinquent borrowers with a partial 
        financial hardship described in subsection (a)(2)(B) into the 
        income-based repayment plan. Such procedures shall include the 
        following requirements:
                    ``(A) Each entity with a contract to service loans 
                under section 456, and each entity that is a lender of 
                loans made, insured, or guaranteed under part B or any 
                entity that provides student loan servicing for such 
                lender, shall--
                            ``(i) identify each delinquent borrower of 
                        a loan serviced or held by the entity on the 
                        date that such borrower qualifies for a partial 
                        financial hardship described in subsection 
                        (a)(2)(B); and
                            ``(ii) retrieve for such borrower, using 
                        the online income verification system 
                        established under paragraph (4), the borrower's 
                        new monthly payment amount under this section.
                    ``(B) In any case where an entity described in 
                subparagraph (A) is unable to obtain information 
                regarding the borrower's new monthly payment amount 
                under this section, the entity shall notify the 
                Secretary and the Secretary shall provide the entity 
                with a determination of the new monthly payment amount 
                for a borrower not later than 7 days after the entity's 
                request.
                    ``(C) The entity described in subparagraph (A) 
                shall automatically enroll a borrower identified in 
                such subparagraph into the income-based repayment plan 
                as follows:
                            ``(i) In the case of a borrower who filed a 
                        return under section 6012(a)(1) of the Internal 
                        Revenue Code of 1986 for 1 or both of the 
                        immediately preceding tax years--
                                    ``(I) if such borrower makes a 
                                payment equal to or greater than the 
                                new monthly payment amount determined 
                                under subparagraph (A)(ii) for the 
                                income-based repayment plan, the entity 
                                will automatically enroll the borrower 
                                in the income-based repayment program, 
                                unless the borrower requests otherwise;
                                    ``(II) if such borrower's new 
                                monthly payment amount provided under 
                                subparagraph (A)(ii) for the income-
                                based repayment plan is determined to 
                                be $0, the entity will automatically 
                                enroll the borrower in the income-based 
                                repayment program, if the borrower 
                                provides consent for such enrollment, 
                                as determined through either an online 
                                agreement or a signed consent form; and
                                    ``(III) if such borrower does not 
                                make a payment equal to or greater than 
                                the new monthly payment amount 
                                determined under subparagraph (A)(ii) 
                                for the income-based repayment plan, 
                                the entity will not automatically 
                                enroll the borrower in the income-based 
                                repayment program.
                            ``(ii) In the case of a borrower identified 
                        under subparagraph (A)(i) who was not required 
                        to file a tax return under section 6012(a)(1) 
                        of the Internal Revenue Code of 1986 for the 2 
                        consecutive preceding tax years--
                                    ``(I) the entity will deem the 
                                borrower's monthly payment amount for 
                                income-based repayment to be $0 until 
                                determined otherwise through additional 
                                information; and
                                    ``(II) the entity will 
                                automatically enroll the borrower in 
                                the income-based repayment program if 
                                the borrower provides consent for such 
                                enrollment, as determined through 
                                either an online agreement or a signed 
                                consent form.
                            ``(iii) In the case of a borrower 
                        identified under paragraph (1)(A) who failed to 
                        file a return under section 6012(a)(1) of the 
                        Internal Revenue Code of 1986, for the 
                        preceding tax year, the entity will carry out 
                        the requirements described in paragraph (3)(C), 
                        including automatically enrolling the borrower 
                        in the income-based repayment program if the 
                        borrower provides consent and provides 
                        additional information, as described in such 
                        paragraph.
                    ``(D) The entity described in subparagraph (A) 
                shall provide each borrower identified with a partial 
                financial hardship under subparagraph (A)(i), as part 
                of the borrower's next periodic statement, a 
                personalized statement to the borrower that--
                            ``(i) informs the borrower--
                                    ``(I) that the borrower will be 
                                automatically enrolled into the income-
                                based repayment plan under this 
                                section, in accordance with the 
                                procedure described in subparagraph (C) 
                                that is applicable to the borrower's 
                                case;
                                    ``(II) of the key terms and 
                                conditions of such repayment plan; and
                                    ``(III) what the borrower's new 
                                monthly payment amount under the 
                                income-based repayment plan will be for 
                                the next year;
                            ``(ii) notifies the borrower of the 
                        automatic enrollment procedures described in 
                        subparagraph (C);
                            ``(iii) provides a clear list of dangers 
                        associated with continued delinquency and 
                        default on eligible loans;
                            ``(iv) informs the borrower that the 
                        borrower is eligible for a different monthly 
                        payment amount under the standard 10-year plan, 
                        and the estimated monthly payment amount under 
                        the standard 10-year plan;
                            ``(v) informs the borrower that paying the 
                        minimum monthly payment amount under the 
                        income-based repayment plan under this section 
                        may lead to negative amortization such that if 
                        a borrower's monthly payment does not fully 
                        cover the amount of interest owed, then the 
                        principal amount owed may increase over time 
                        and cause the borrower's loan balance to 
                        increase; and
                            ``(vi) includes any other information 
                        determined to be relevant by the Secretary, in 
                        consultation with the Director of the Bureau of 
                        Consumer Financial Protection.
            ``(2) Standard notification format; consumer testing.--The 
        Secretary, in consultation with the Director of the Bureau of 
        Consumer Financial Protection, shall--
                    ``(A) develop a standard format for the 
                personalized statement described in paragraph (1)(D); 
                and
                    ``(B) submit for consumer testing under section 
                483, such standard format and any consent form or 
                online tool required for consent of borrowers with $0 
                payment to participate in income-based repayment under 
                paragraph (1)(C)(ii)(II) or (3)(B).
            ``(3) Failure to file.--
                    ``(A) Monthly payment amount treated as $0.--In the 
                case of a borrower identified under paragraph (1)(A) 
                who is required to file a return under section 
                6012(a)(1) of the Internal Revenue Code of 1986 and 
                fails to file such return, the Secretary of the 
                Treasury shall transmit to the Secretary of Education 
                any such tax information of the individual as may be 
                necessary to determine the appropriate monthly payment 
                amount. If such information is unavailable or 
                insufficient, then the monthly payment amount shall be 
                treated as $0 until determined otherwise through 
                additional information.
                    ``(B) Borrower contact requirement.--A borrower 
                whose monthly payment amount is treated as $0 due to 
                unavailable or insufficient information, as described 
                in subparagraph (A), shall be automatically enrolled in 
                the income-based repayment plan under this section if 
                the borrower--
                            ``(i) provides consent for such enrollment, 
                        as determined through either an online 
                        agreement or a signed consent form; and
                            ``(ii) provides the information needed to 
                        determine the appropriate monthly payment 
                        amount under the income-based repayment plan.
                    ``(C) Notification.--The entity described in 
                paragraph (1)(A) shall communicate to a borrower 
                described in this paragraph of the policy described in 
                subparagraph (A) and the requirements that the borrower 
                must fulfill, as described in subparagraph (B), in 
                order to enroll in the income-based repayment plan 
                under this section if such borrower's monthly payment 
                amount has been treated as $0 due to unavailable or 
                insufficient information, as determined by the 
                Secretary. Such policy and requirements shall be 
                communicated to the borrower in plain and simple 
                language in the next periodic statement described under 
                paragraph (1)(D).
            ``(4) Creation of online income verification system.--
                    ``(A) In general.--By not later than the date that 
                is 1 year after the date of enactment of the Higher 
                Education Affordability Act, the Secretary, in 
                consultation with the Secretary of the Treasury, shall 
                develop and establish a streamlined online income 
                verification system website that allows each entity 
                with a contract to service loans under section 456, and 
                each entity that is an eligible lender of loans made, 
                insured, or guaranteed under part B or another entity 
                that provides student loan servicing for such lender or 
                loan holder, to access and retrieve the monthly payment 
                amount for the income-based repayment program for a 
                borrower identified under paragraph (1)(A). The website 
                shall provide no additional information relating to a 
                borrower's financial circumstances beyond that needed 
                to determine a monthly payment amount.
                    ``(B) Security.--The Secretary shall ensure that 
                the online income verification system website 
                established under subparagraph (A) is secure and that 
                information regarding a borrower is accessible only to 
                the lender of a loan of such borrower or the entity 
                that is servicing a loan of such borrower. The 
                Secretary shall ensure that no entity shall access the 
                online income verification system website for the 
                purposes of collections with respect to loans.
                    ``(C) Prohibition of inappropriate use.--Any use of 
                the online income verification system that is not for 
                the purpose described in subparagraph (A) is prohibited 
                and may be the basis for a claim of a violation of a 
                contract entered into under section 456, or for an 
                action under subsection (g) or (h) of section 432, as 
                the case may be.
            ``(5) Appeals process.--The Secretary shall establish a 
        clear and accessible process for appealing the monthly payment 
        amount determined under the online income verification system 
        website for a borrower identified in paragraph (1)(A) in any 
        case where a borrower believes that the monthly payment amount 
        is based on tax information that is incorrect. If a borrower 
        wins such an appeal, then the Secretary shall--
                    ``(A) retroactively credit the overpaid amount 
                towards future payments; or
                    ``(B) apply the overpaid amount towards the 
                principal balance of the borrower's loans, if requested 
                to do so by the borrower.
    ``(e) Changes to FAFSA.--By not later than 1 year after the date of 
enactment of the Higher Education Affordability Act, the Secretary 
shall make changes as needed to the common master promissory note 
developed under section 432(m)(1)(A) and the Free Application for 
Federal Student Aid described in section 483 to implement the 
requirements of this section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 1 year after the date of enactment of 
this Act.

SEC. 493. EXTENDING THE PROTECTIONS FOR STUDENT LOANS FOR ACTIVE DUTY 
              BORROWERS.

    Section 493D (20 U.S.C. 1098f) is amended--
            (1) in the section heading, by inserting ``and protections 
        for active duty borrowers'' before the period at the end;
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following:
    ``(b) Use of Information.--
            ``(1) In general.--The Secretary shall utilize information 
        the Secretary receives regarding the active duty status of 
        borrowers from the Secretary of Defense for any purpose under 
        this title to ensure that the interest rate charged on any loan 
        made under part D of title IV for borrowers who are subject to 
        section 207(a)(1) of the Servicemembers Civil Relief Act (50 
        U.S.C. App. 527(a)(1)) does not exceed the maximum interest 
        rate set forth in such section.
            ``(2) SCRA interest rate limitation notice requirements.--
        The submittal by the Secretary of Defense to the Secretary of 
        Education of information that informs the Secretary of 
        Education that a member of the Armed Forces with a student loan 
        under part D of title IV has been or is being called to 
        military service (as defined in section 101 of the 
        Servicemembers Civil Relief Act (50 U.S.C. App. 511)), 
        including a member of a reserve unit who is ordered to report 
        for military service as provided for under section 106 of such 
        Act (50 U.S.C. App. 516), shall be considered, for purposes of 
        subjecting such student loan to the provisions of section 207 
        of the Servicemembers Civil Relief Act (50 U.S.C. App. 527), 
        provision by the borrower to the creditor of written notice and 
        a copy of military orders as described in subsection (b)(1) of 
        such section.
            ``(3) Procedures.--Not later than 180 days after the date 
        of enactment of the Higher Education Affordability Act, the 
        Secretary, in consultation with the Department of Defense, 
        shall establish a procedure to implement this subsection.''.

SEC. 493A. DISBURSEMENT OF CREDIT BALANCE.

    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by adding at 
the end the following:

``SEC. 493E. DISBURSEMENT OF CREDIT BALANCE.

    ``(a) Credit Balance.--In this section, the term `credit balance' 
means the amount of program funds under this title credited to a 
student's ledger account at the institution of higher education that 
exceed the amount assessed the student by the institution for allowable 
institutional charges, as defined by the Secretary.
    ``(b) Establishment of System for Disbursement.--Not later than 3 
years after the date of enactment of the Higher Education Affordability 
Act, each institution of higher education that enrolls a student who 
receives a grant or loan under this title shall establish a system for 
the disbursement of credit balances in accordance with subsection (c).
    ``(c) Electronic Payment System.--
            ``(1) In general.--Each institution of higher education 
        described in subsection (b) shall establish a system for 
        disbursement of credit balances through electronic payments to 
        a deposit account or a general use prepaid card with the 
        protections afforded under the Electronic Fund Transfer Act (15 
        U.S.C. 1693 et seq.).
            ``(2) No preferred financial institution or denial or 
        delay.--In carrying out the system under paragraph (1), an 
        institution of higher education shall not--
                    ``(A) require or encourage a student to select a 
                particular financial institution to which an electronic 
                payment under this section shall be made; or
                    ``(B) deny or cause a delay in the disbursement of 
                credit balances based on the selection by a student of 
                a particular financial institution.
            ``(3) Waiver.--A public institution of higher education may 
        seek a waiver from the Secretary of the requirements of 
        paragraph (1) if a State or local governmental entity, or a 
        State or local policy or procedure, prevents compliance with 
        such requirements. The Secretary shall grant the waiver only if 
        such institution ensures that credit balances are provided to 
        students in a manner consistent with the goals and purposes of 
        this section, as determined by the Secretary.
    ``(d) Distribution Options.--
            ``(1) Pilot program.--The Secretary of Education, in 
        consultation with the Secretary of the Treasury and the 
        Director of the Bureau of Consumer Financial Protection, shall 
        conduct a pilot program on providing students with the option 
        of receiving credit balances, through the electronic payment 
        system of the institution of higher education in accordance 
        with subsection (c), by using the Treasury Direct Express 
        system established under section 3336 of title 31, United 
        States Code, or through any other low-cost alternative as 
        determined by the Secretary.
            ``(2) Implementation.--If the Secretary of Education, after 
        conducting the pilot program described in paragraph (1), 
        determines that allowing students with credit balances to use 
        any option described in such paragraph is in the best interest 
        of students, the Secretary shall take such actions as are 
        necessary to provide any such option to students, which may 
        include entering into agreements with the Secretary of the 
        Treasury or other entity to implement this paragraph.''.

SEC. 493B. DISCLOSURE OF COHORT RATES BASED ON REPAYMENT PLAN AND 
              DEFERMENT STATUS.

    Part G of title IV (20 U.S.C. 1088 et seq.), as amended by section 
493A, is further amended by adding at the end the following:

``SEC. 493F. DISCLOSURE OF COHORT RATES BASED ON REPAYMENT PLAN AND 
              DEFERMENT STATUS.

    ``(a) Preparation and Publication of Additional Cohort Rates.--
            ``(1) In general.--Not less often than once every fiscal 
        year, the Secretary shall prepare and publish a report that 
        includes--
                    ``(A) all of the cohort rates calculated under 
                subsections (a) and (c) for each eligible institution 
                participating in any program under this title; and
                    ``(B) the underlying numbers and data used to 
                calculate the cohort rates described in paragraph (1).
            ``(2) Timing and method of publication.--The Secretary 
        shall publish the report described in paragraph (1)--
                    ``(A) on, or as close as practicable to, the date 
                on which the cohort default rates under section 435(m) 
                are made available to the public; and
                    ``(B) in the same report, or in a nearby location 
                on the same website, as the report on cohort default 
                rates required under section 435(m)(4).
    ``(b) Calculation of Cohort Rates for Stafford and Unsubsidized 
Stafford Cohort Borrowers.--
            ``(1) Identification of cohort.--For each fiscal year, the 
        Secretary shall use, as the cohort for purposes of calculating 
        the rates described in paragraph (3), the borrowers of the 
        loans that are included in the institution's cohort for 
        purposes of the cohort default rate calculation under section 
        435(m), except that a borrower of multiple loans in such cohort 
        shall only be counted as a single borrower.
            ``(2) Calculation.--Not less often than once every fiscal 
        year, the Secretary shall calculate for each eligible 
        institution participating in any program under this title, the 
        following rates:
                    ``(A) The percentages of borrowers within each 
                cohort in each type of deferment status described--
                            ``(i) sections 427(a)(2)(C) and 
                        428(b)(1)(M); and
                            ``(ii) sections 427(a)(2)(C)(vii) and 
                        428(b)(1)(M)(vii) (as in effect prior to the 
                        enactment of the Higher Education Amendments of 
                        1992).
                    ``(B) The percentages of borrowers within each 
                cohort that, as of the date of the determination, have 
                been delinquent on the loan included in the cohort 
                for--
                            ``(i) at least 30 and not more than 59 
                        days;
                            ``(ii) at least 60 and not more than 89 
                        days; and
                            ``(iii) 90 days or more.
                    ``(C) Of the borrowers in the cohort that are in 
                active repayment, the percentages of borrowers in each 
                of the following repayment plans:
                            ``(i) Standard repayment.
                            ``(ii) Extended repayment, for each of the 
                        following maximum repayment periods:
                                    ``(I) Not more than 10 years.
                                    ``(II) More than 10, but not more 
                                than 12, years.
                                    ``(III) More than 12, but not more 
                                than 15, years.
                                    ``(IV) More than 15, but not more 
                                than 20, years.
                                    ``(V) More than 20, but not more 
                                than 25, years.
                                    ``(VI) More than 25, but not less 
                                than 30, years.
                            ``(iii) An income contingent repayment plan 
                        authorized under section 455(e).
                            ``(iv) Income-based repayment under section 
                        493C.
                            ``(v) Income-sensitive repayment under 
                        section 428(b)(9)(A)(iii) or 428C(b)(1)(E).
                    ``(D) Of the borrowers in each group described in 
                clauses (iii) through (iv) of subparagraph (D), the 
                percentage whose outstanding balance due on the loan at 
                the end of the year is greater than the total 
                outstanding balance due on such loan at the beginning 
                of the year.
    ``(c) Calculation of Cohort Rates for Graduate PLUS Borrowers.--
            ``(1) In general.--Not less often than once every fiscal 
        year, the Secretary shall calculate a cohort rate for Graduate 
        PLUS borrowers for each institution by--
                    ``(A) identifying the cohort of 1 or more borrowers 
                of a loan received for attendance at the institution 
                that--
                            ``(i) is made to a graduate student under 
                        section 428B, Federal Direct PLUS Loan, or a 
                        loan under section 428C or a Federal Direct 
                        Consolidation Loan that is used to repay such 
                        loan; and
                            ``(ii) that entered repayment during the 
                        second fiscal year preceding the fiscal year 
                        for which the determination is being made; and
                    ``(B) using the cohort described in subparagraph 
                (A) to calculate the graduate PLUS cohort rate under 
                paragraph (2).
            ``(2) Calculation.--The graduate PLUS cohort rate under 
        this subsection for an institution shall be calculated by 
        determining the ratio of--
                    ``(A) the number of borrowers in the cohort 
                described in paragraph (1)(A) for the institution that 
                have defaulted on a loan included in the cohort; to
                    ``(B) the total number of borrowers in such cohort.
    ``(d) Calculation of Cohort Rates for Parent PLUS Borrowers.--
            ``(1) In general.--Not less often than once every fiscal 
        year, the Secretary shall calculate a cohort rate for parent 
        PLUS borrowers for each institution by--
                    ``(A) identifying the cohort of borrowers for the 
                fiscal year, in accordance with paragraph (2); and
                    ``(B) using such cohort described in subparagraph 
                (A) to calculate the parent PLUS cohort rate in 
                accordance with paragraph (3).
            ``(2) Cohort.--
                    ``(A) In general.--The cohort for an institution 
                for purposes of this subsection shall be the borrowers 
                of a loan under section 428B, Federal Direct PLUS Loan, 
                or a loan under section 428C or a Federal Direct 
                Consolidation Loan that--
                            ``(i) is made on behalf of a dependent 
                        student under section 428B for attendance at 
                        the institution; and
                            ``(ii)(I) for determinations made for 
                        fiscal years preceding fiscal year 2025, 
                        entered repayment during the period beginning 
                        in fiscal year 2015 and ending on September 30 
                        of the fiscal year preceding the fiscal year 
                        for which the determination is being made; or
                            ``(II) for determinations made for fiscal 
                        year 2025 and each subsequent fiscal year, 
                        entered repayment during the tenth year 
                        preceding the fiscal year for which the 
                        determination is being made.
            ``(3) Calculation.--The parent PLUS cohort rate under this 
        subsection for an institution shall be calculated by 
        determining the ratio of--
                    ``(A) the number of borrowers in the cohort 
                described in paragraph (1)(A) for the institution that 
                have defaulted on a loan included in the cohort; to
                    ``(B) the total number of borrowers in such cohort.
    ``(e) Treatment of Borrowers With Multiple Loans.--A borrower with 
multiple loans in the same borrower repayment cohort of an institution 
shall be counted as a single borrower.
    ``(f) Procedures.--The Secretary shall carry out this section in a 
manner that is as similar as practicable to the manner in which the 
Secretary calculates the cohort default rates under section 435(m), 
including by using common definitions, timelines, and procedures. Such 
procedures shall include providing an opportunity for each institution 
to have a reasonable opportunity (as specified by the Secretary) to 
review and correct errors in the information required for the purposes 
of calculating the rates under this section for such institution, prior 
to the calculation of such rate.''.

SEC. 493C. INSTITUTIONAL REPORTING REQUIREMENTS.

    Part G of title IV (20 U.S.C. 1088 et seq.), as amended by section 
493A and 493B, is further amended by adding at the end the following:

``SEC. 493G. INSTITUTIONAL REPORTING REQUIREMENTS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to promote better transparency of information to 
        students and their families about postsecondary costs and 
        outcomes while protecting student privacy in data collection;
            ``(2) to reduce the burden of data collection on 
        institutions of higher education, including duplicative IPEDS 
        reporting;
            ``(3) to inform institutional and program improvement at 
        institutions of higher education; and
            ``(4) to help improve laws and policies impacting 
        postsecondary education.
    ``(b) IPEDS Data Components.--
            ``(1) Submission of data.--Each institution of higher 
        education participating in a program under this title shall 
        submit to the Secretary student unit record data that is 
        necessary and sufficient, as determined by the Secretary, to 
        complete all student components of reporting required for the 
        Integrated Postsecondary Education Data System (referred to in 
        this section as `IPEDS').
            ``(2) Required data.--The data required to be reported to 
        the Secretary under paragraph (1) shall include the minimum 
        number of data elements necessary and sufficient for the fall 
        enrollment, 12-month enrollment, completions, student financial 
        aid and net price, graduation rates, student charges portions 
        of IPEDS, and portions of IPEDS relating to admissions, test 
        scores, and institutional characteristics surveys, and other 
        surveys, as determined by the Secretary. The Secretary shall 
        undertake data minimization efforts in collecting this data and 
        shall aggregate the data received and report it publicly at the 
        institutional, program-specific, and State-specific level.
            ``(3) Review.--
                    ``(A) In general.--Not later than 6 months after 
                the date of enactment of the Higher Education 
                Affordability Act, the Secretary shall--
                            ``(i) review the data collected pursuant to 
                        IPEDS to determine whether it is duplicative of 
                        the data required to be collected under this 
                        section; and
                            ``(ii) establish a process by which 
                        institutions of higher education will 
                        transition to reporting data under this section 
                        in a way that reduces duplication and burden.
                    ``(B) Update of review.--Beginning 5 years after 
                the date of enactment of the Higher Education 
                Affordability Act, and every 5 years thereafter or as 
                necessary as determined by the Secretary, the Secretary 
                shall review and update, as necessary, the categories 
                of data that shall be submitted pursuant to paragraph 
                (1).
            ``(4) Guidance.--Not later than 1 year after the date of 
        enactment of the Higher Education Affordability Act, the 
        Secretary shall submit to institutions of higher education--
                    ``(A) guidance related to the submission of data 
                under this section; and
                    ``(B) a reasonable timeframe by which institutions 
                of higher education shall submit the data.
            ``(5) Continuation of collection.--IPEDS data that is 
        required to be collected on the day before the date of 
        enactment of the Higher Education Affordability but is not 
        reported into the student unit record system established under 
        this section shall continue to be collected.
    ``(c) Establishment of New Outcome Metrics.--
            ``(1) In general.--Data submitted to the Secretary under 
        subsection (b) shall be used to calculate student components of 
        IPEDS.
            ``(2) Additional measures to be calculated by the 
        secretary.--In addition to the IPEDS student component measures 
        required to be calculated by the Secretary on the day before 
        the date of enactment of the Higher Education Affordability Act 
        and the data elements described in subsection (b)(2), the 
        Secretary shall also collect the student unit record data 
        necessary and sufficient to calculate, beginning not later than 
        2 years after the date of enactment of the Higher Education 
        Affordability Act and at the certificate or degree-level, and 
        institutional, program-specific, and State-specific level, 
        information concerning each of the following:
                    ``(A) The dollar amount and number of students 
                receiving Federal, State, institutional and private 
                financial aid, including grants, loans, and cumulative 
                debt that is reported separately for undergraduate and 
                graduate students and disaggregated by completion 
                status.
                    ``(B) Graduation, persistence, transfer rates, and 
                still enrolled rates for all undergraduate students, 
                reported overall and separately for first-time full-
                time students at entry, first-time part-time students 
                at entry, transfer full-time students at entry and 
                part-time transfer students at entry within 100 
                percent, 150 percent, and 200 percent of the normal 
                time to graduation, including transfer rates by level 
                of receiving institution.
                    ``(C) Completion rates for master's, professional, 
                and doctoral level students.
                    ``(D) Earnings data for undergraduate and graduate 
                students, disaggregated by completion status, for each 
                of the following time periods:
                            ``(i) 2 years after program exit.
                            ``(ii) 5 years after program exit.
                            ``(iii) 10 years after program exit.
                    ``(E) Loan repayment rates for undergraduate and 
                graduate students, disaggregated by completion status.
                    ``(F) Enrollment in subsequent postsecondary 
                education for undergraduate and graduate level 
                students.
                    ``(G) Any other measures determined by the 
                Secretary, after consultation with the National Center 
                for Education Statistics and with input from the 
                postsecondary education community, including students, 
                representatives from institutions of higher education, 
                researchers, the public, and other relevant 
                stakeholders.
            ``(3) Requirements for the student unit record data 
        system.--The Secretary shall establish a student unit record 
        data system under this section that shall--
                    ``(A) establish consistent definitions and 
                directions for institutions to follow in submitting the 
                student unit record data required under this section;
                    ``(B) determine both collection and submission 
                requirements for this section, including the CIP codes 
                to be used for reporting program-specific data;
                    ``(C) be subject to a privacy impact assessment, as 
                described in section 208 of the E-Government Act of 
                2002, before collecting information;
                    ``(D) streamline and minimize the data required to 
                be submitted under subsection (b)(2) and paragraph (2), 
                in order to reduce duplication of reporting of 
                information by institutions of higher education and to 
                protect student privacy, which shall be done by working 
                with the National Center for Education Statistics, the 
                Office of Federal Student Aid, other offices within the 
                Department, and other Federal agencies, as determined 
                appropriate by the Secretary;
                    ``(E) prepopulate the student unit record data 
                system with data from existing data sources, including 
                the National Student Loan Data System under section 
                485B, and ensure that such data is imported into the 
                student unit record data system but data from the 
                student unit record system is not exported back to the 
                National Student Loan Data System or other existing 
                data sources;
                    ``(F) include a process, developed in collaboration 
                with the Social Security Administration, by which--
                            ``(i) the Department submits unit record 
                        lists to the Social Security Administration 
                        with instructions on how to group and aggregate 
                        the data; and
                            ``(ii) the Social Security Administration, 
                        consistent with Social Security Administration 
                        privacy standards and in a way that does not 
                        reveal personally identifiable information--
                                    ``(I) returns, to the Department, 
                                earnings data for students attending 
                                each institution that is provided in 
                                the aggregate and disaggregated based 
                                on the programs of education attended 
                                and by type of certificate or degree 
                                earned by the graduates; and
                                    ``(II) aggregates the earning data 
                                for students attending institutions in 
                                order to provide institution-specific 
                                and State-specific earnings data needed 
                                by the Department for purposes of 
                                paragraph (2); and
                    ``(G) allow institutions of higher education to 
                request the system of higher education of which they 
                are a member or the State in which they are located to 
                report student unit record data on their behalf if such 
                reporting fully complies with all the requirements of 
                this section;
                    ``(H) report the outcome metrics required under 
                this subsection, disaggregated, if the number of 
                students in such subgroup or with such status is 
                sufficient to avoid revealing personally identifiable 
                information about an individual student, by--
                            ``(i) race and ethnicity;
                            ``(ii) gender;
                            ``(iii) whether and at what level the 
                        student has enrolled in a degree-granting 
                        program, certificate-granting program, or 
                        developmental education;
                            ``(iv) first-time or transfer status;
                            ``(v) part-time or full-time status;
                            ``(vi) disability status, if applicable;
                            ``(vii) receipt of a Federal Pell Grant;
                            ``(viii) receipt of a loan made, insured, 
                        or guaranteed under section 428 or a Federal 
                        Direct Stafford Loan;
                            ``(ix) status as a student who has received 
                        no Federal Pell Grants, no loans made, insured, 
                        or guaranteed under section 428, and no Federal 
                        Direct Stafford Loans;
                            ``(x) age ranges, to be determined by the 
                        Secretary;
                            ``(xi) military or veteran status; and
                            ``(xii) other categories determined 
                        necessary by the Secretary; and
                    ``(I) require that data required under this section 
                be collected for all students, including undergraduate 
                and graduate students but reported separately for 
                undergraduate and graduate students.
    ``(d) Reporting of Data.--
            ``(1) In general.--The Secretary shall use the data 
        provided by institutions of higher education under subsections 
        (b) and (c) only for the following:
                    ``(A) Publication of such statistical reports and 
                studies as the Secretary determines appropriate, 
                provided that such reports do not disclose personally 
                identifiable information to any party. The Secretary 
                shall specifically provide public statistical reports 
                on access, costs, financial aid, educational needs, and 
                student outcomes that include graduation rates.
                    ``(B) Management, policy planning, and oversight 
                purposes within the Department, including research to 
                improve Federal laws impacting postsecondary education.
                    ``(C) Consumer information.
                    ``(D) Providing information to institutions of 
                higher education for institutional and program 
                improvement.
                    ``(E) To fulfill the IPEDS reporting obligations of 
                institutions of higher education and reduce the 
                reporting burden on institutions.
            ``(2) Public access to information.--The IPEDS data 
        components and new outcome metrics collected under this section 
        shall be included in the IPEDS Data Center at the institution 
        and program specific level. Non-personally identifiable data 
        shall also be available to the public and widely disseminated 
        through electronic transfer, or other means, such as posting on 
        the National Center for Education Statistics' website or other 
        relevant place in a way that does not allow for the disclosure 
        or dissemination of any personally identifiable information and 
        shall fully comply with rules and regulations of the National 
        Center for Education Statistics for data access.
    ``(e) Involvement of Stakeholders in Developing Calculation and 
Reporting Standards.--In carrying out this section, the Secretary shall 
consult extensively with institutions of higher education, State 
agencies of higher education, privacy advocates, education researchers, 
statistical experts, students and their families.
    ``(f) Privacy, Security, and Use of Student Unit Record 
Information.--
            ``(1) Limitations on disclosure of information.--Personally 
        identifiable information maintained in the Federal student unit 
        record data system established under this section shall only be 
        disclosed to--
                    ``(A) students whose data is contained in the 
                system, upon request, and in connection with their own 
                personally identifiable information;
                    ``(B) institutions of higher education or their 
                contractors (subject to paragraph (2)), to the extent 
                that such disclosures may be required for purposes of 
                data validation or correction regarding the data that 
                institutions or their contractors already submitted, 
                provided that no student-level data elements from other 
                sources are disclosed to such institutions of higher 
                education or their contractors;
                    ``(C) employees or contractors of the Department to 
                the extent that such disclosure is necessary for the 
                Secretary to carry out the requirements of this 
                section, and, in the case of contractors, subject to 
                paragraph (2); or
                    ``(D) employees or contractors of the Social 
                Security Administration, provided that such disclosures 
                are limited to the minimum number of data elements 
                needed to obtain earnings data specifically authorized 
                in this section, and that no personally identifiable 
                information from the student unit record data system is 
                retained by the Social Security Administration after 
                they have provided earnings data.
            ``(2) Requirements for contracts.--In carrying out the 
        requirements of this section, the Secretary and institutions of 
        higher education may not disclose personally identifiable 
        information from records of students to a contractor, 
        consultant, or other third party to whom the Secretary or 
        institution has delegated data collection and maintenance 
        functions unless that contractor, consultant, or other third 
        party--
                    ``(A) is performing a function or task for which 
                the Department, or institution of higher education 
                would otherwise use employees;
                    ``(B) is under the direct control of the Department 
                or institution with respect to the use and maintenance 
                of education records;
                    ``(C) does not use the education records for any 
                other purposes than those explicitly authorized in its 
                contract and agrees to not re-disclose personally 
                identifiable information to any third party;
                    ``(D) uses applicable Federally mandated or 
                industry-standard encryption technologies;
                    ``(E) has sufficient administrative and technical 
                procedures to maintain safeguards and continuously 
                monitor the security of personally identifiable 
                information in its custody;
                    ``(F) provides training to all employees and 
                responsible individuals, to ensure the security of 
                education records;
                    ``(G) provides to the Department or institution, an 
                acceptable breach remediation plan prior to the initial 
                receipt of education records;
                    ``(H) reports all actual and suspected security 
                breaches to the Department or institution that provided 
                the education records as soon as detected;
                    ``(I) in the event of a security breach or 
                unauthorized disclosure of personally identifiable 
                information, pay all costs and liabilities incurred by 
                the Department or institution related to the security 
                breach or unauthorized disclosure, including costs 
                related to inquiries, mitigation, notification, and 
                investigation costs; and
                    ``(J) destroys or returns to the Department or 
                institution all such personally identifiable 
                information that has been submitted into the student 
                unit record system upon request of the Department or 
                institution at the termination of the contract.
            ``(3) Data audit and data governance systems.--In order to 
        ensure compliance with all Federal standards of data quality 
        and individual privacy, the student unit record data system 
        developed under this section shall include--
                    ``(A) a data audit system assessing data quality;
                    ``(B) a breach audit system;
                    ``(C) processes for data safeguarding; and
                    ``(D) a data governance system.
            ``(4) Prohibition and unauthorized use.--
                    ``(A) In general.--Individual data collected under 
                this section shall not be used for any purpose not 
                specifically authorized by this section.
                    ``(B) No future action taken against an 
                individual.--
                            ``(i) In general.--No action of Federal 
                        authority, State authority, or local authority 
                        of any kind may be taken against an individual 
                        by utilizing the student unit record data 
                        system established under this section nor shall 
                        the student unit record data system established 
                        under this section be used--
                                    ``(I) for purposes of--
                                            ``(aa) establishing or 
                                        verifying the eligibility of 
                                        applicants for, or recipients 
                                        or beneficiaries of, cash or 
                                        in-kind assistance or payments 
                                        under Federal benefit programs; 
                                        or
                                            ``(bb) continuing 
                                        compliance with statutory and 
                                        regulatory requirements for 
                                        such assistance or payments by 
                                        such applicants, recipients, or 
                                        beneficiaries;
                                    ``(II) for recouping payments or 
                                delinquent debts under such Federal 
                                benefit programs; or
                                    ``(III) to affect future 
                                educational, employment, health, civil, 
                                criminal, or other actions against an 
                                individual whose information is 
                                maintained by the student unit record 
                                data system.
                            ``(ii) Exception.--Any data collected, 
                        stored outside of the unit record system prior 
                        to enactment of the Higher Education 
                        Affordability Act, and used for enforcement 
                        actions, including data in the National Student 
                        Loan Data System, shall continue to be used for 
                        those purposes even when duplicates of the data 
                        are included in the unit record system.
                    ``(C) Guidelines.--The Secretary shall issue 
                guidelines to institutions regarding the need to amend 
                the institutions' required annual privacy notices to 
                reference the data collection required under this 
                section.
                    ``(D) Commercial use prohibited.--No data collected 
                or maintained under this section shall sold to third 
                parties nor used to market any products to individuals 
                whose data is collected under this section.
            ``(5) Individual privacy and access to data.--Prior to 
        implementation of this section, the Secretary shall publish for 
        public comment proposed procedures that ensure--
                    ``(A) the system developed under this section does 
                not disclose any personally identifiable information 
                and complies with the requirements of section 444 of 
                the General Education Provisions Act (20 U.S.C. 1232g) 
                (commonly known as the `Family Educational Rights and 
                Privacy Act') and other applicable Federal and State 
                privacy laws; and
                    ``(B) there is a policy on the use of data 
                collected under this section that prevents any use of 
                data outside of the purposes of this section.
    ``(g) Penalties for Unauthorized Disclosure of Data.--Any 
individual who willfully discloses any personally identifiable 
information, including personal identifiers, provided under this 
section, in any manner to an entity not authorized to receive such 
personally identifiable information, shall be charged with a class E 
felony, punishable by up to 5 years in prison, a fine of $250,000, or 
both.
    ``(h) Website and Hotline.--The Secretary shall establish a website 
and free hotline number that will provide information to students, 
their families, and the public about the student unit record data 
system established under this section to answer any questions the 
public may have about such system.
    ``(i) Cooperation of Other Federal Agencies.--The Commissioner of 
Social Security shall work with the Secretary of Education to establish 
a process for matching and obtaining the data required under subsection 
(c)(3)(E).
    ``(j) Data Sovereignty.--The Secretary shall ensure all data 
maintained in the student unit record system are stored within the 
boundaries of the United States or in a facility owned and controlled 
by a contractor subject to the legal jurisdiction of the United 
States.''.

                       PART H--PROGRAM INTEGRITY

SEC. 496. PUBLIC DISCLOSURE OF FINALIZED ACCREDITATION DOCUMENTS; 
              PROHIBITION ON PRE-DISPUTE ARBITRATION MANDATES.

    (a) Requirements for Accrediting Agencies or Associations.--Section 
496 (20 U.S.C. 1099b) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (7), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (8), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(9) such agency or association does not require any 
        institution to enter into predispute arbitration agreements 
        with the students of the institution; and
            ``(10) such agency or association shall comply with the 
        requirements of section 444 of the General Education Provisions 
        Act (commonly known as the `Family Educational Rights and 
        Privacy Act of 1974') (20 U.S.C. 1232g).'';
            (2) in subsection (c)--
                    (A) in paragraph (3)(A), by striking ``section 
                487(f)'' and inserting ``section 487(e)'';
                    (B) in paragraph (8), by striking ``and'' after the 
                semicolon;
                    (C) in paragraph (9)(B), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(10) makes available on the website of the agency or 
        association, for each institution subject to its jurisdiction, 
        the accreditation documents relating to academic and 
        institutional quality, as described in subsection (o), for the 
        most recent accreditation period.'';
            (3) by redesignating subsections (o) through (q) as 
        subsections (p) through (r), respectively; and
            (4) by inserting after subsection (n) the following:
    ``(o) Finalized Accreditation Documents Relating to Academic and 
Institutional Quality.--
            ``(1) In general.--The finalized accreditation documents 
        relating to academic and institutional quality that are subject 
        to the requirements of subsection (c)(10) and section 
        487(a)(21) shall be any final report or analysis of the agency 
        or association, as determined by the Secretary in consultation 
        with the National Advisory Committee on Institutional Quality 
        and Integrity, regarding whether an institution or program is 
        in compliance with the standards of the agency or association, 
        including--
                    ``(A) any finalized self-study report prepared by 
                the institution or program that includes the assessment 
                of educational quality and the institution's or 
                program's continuing efforts to improve educational 
                quality;
                    ``(B) any finalized report by the accrediting 
                agency or association on each on-site review conducted 
                of the institution or program (including any written 
                response by the institution or program to such report);
                    ``(C) any finalized written report by the 
                accrediting agency or association assessing the 
                institution or program's compliance with the 
                accrediting standards and the institution or program's 
                performance with respect to student achievement;
                    ``(D) the documents required under section 
                496(c)(7) relating to any adverse accrediting agency or 
                association action regarding the institution or 
                program, including any decision of final denial, 
                withdrawal, suspension, or termination of 
                accreditation, placement on probation, or other adverse 
                action, and all supporting documentation for such 
                action; and
                    ``(E) a summary by the accrediting agency or 
                association that clearly explains to the public the 
                overall assessment, including key concerns, of the 
                relevant institution or program.
            ``(2) Appeals process for finalized accreditation 
        documents.--The Secretary shall establish a clear and 
        accessible process for an institution of higher education to 
        appeal the public release of finalized accreditation documents 
        under paragraph (1).
    ``(p) Single Webpage to Finalized Accreditation Documents.--
            ``(1) In general.--The Secretary shall establish and 
        maintain a webpage on the website of the Department that 
        provides a single point of access to the finalized 
        accreditation documents relating to the academic and 
        institutional quality that institutions of higher education are 
        required to make available under section 487(a)(21).
            ``(2) Public explanation regarding redacted or unavailable 
        information.--If the Secretary makes a decision to delay the 
        release of the finalized accreditation documents, or to redact 
        information from any such documents, for an institution of 
        higher education, the Secretary shall include a public 
        explanation of such decision on the webpage described in 
        paragraph (1).''.

SEC. 497. IMPROVED TARGETING OF PROGRAM REVIEWS.

    Section 498(k)(1) (20 U.S.C. 1099c(k)(1)) is amended by striking 
``section 487(f)'' and inserting ``section 487(e)''.

SEC. 498. PROGRAM REVIEW AND DATA.

    Section 498A (20 U.S.C. 1099c-1) is amended to read as follows:

``SEC. 498A. PROGRAM REVIEW AND DATA.

    ``(a) Definitions.--In this section:
            ``(1) Executive compensation.--The term `executive 
        compensation', when used with respect to an institution of 
        higher education, means the wages, salary, fees, commissions, 
        fringe benefits, deferred compensation, retirement 
        contributions, options, bonuses, property, and any other form 
        of remuneration that the Secretary determines is appropriate, 
        given to the 5 percent of employees at the institution who are 
        the highest compensated.
            ``(2) Relevant federal agency.--The term `relevant Federal 
        agency' means--
                    ``(A) the Department of Education;
                    ``(B) the Department of Veterans Affairs;
                    ``(C) the Department of Defense;
                    ``(D) the Bureau of Consumer Financial Protection;
                    ``(E) the Federal Trade Commission; or
                    ``(F) any other Federal agency that provides 
                Federal student assistance or that the Secretary 
                determines appropriate.
            ``(3) Relevant state entity or agency.--The term `relevant 
        State entity or agency' means--
                    ``(A) an appropriate State licensing or authorizing 
                agency;
                    ``(B) the attorney general (or the equivalent 
                thereof) of the State; or
                    ``(C) any other State entity or agency that the 
                Secretary determines appropriate.
    ``(b) Program Reviews for Institutions Participating Under Title 
IV.--
            ``(1) In general.--The Secretary--
                    ``(A) is authorized to conduct program reviews, 
                including on-site visits, of each institution of higher 
                education participating in a program authorized under 
                this title; and
                    ``(B) shall conduct a program review under this 
                subsection of each institution of higher education that 
                poses a significant risk of failure to comply with this 
                title, as described in paragraphs (2) and (3).
            ``(2) Mandatory reviews.--
                    ``(A) In general.--The Secretary shall, on an 
                annual basis, conduct program reviews of each 
                institution of higher education participating in a 
                program authorized under this title that meets 1 or 
                more of the following criteria:
                            ``(i) As of the date of the determination--
                                    ``(I) more than 15 percent of the 
                                students enrolled at the institution 
                                have received a Federal Direct 
                                Unsubsidized Stafford Loan during the 
                                previous year; and
                                    ``(II) the institution has a cohort 
                                default rate, as defined in section 
                                435(m), that is more than 20 percent.
                            ``(ii) As of the date of the 
                        determination--
                                    ``(I) the institution has a cohort 
                                default rate, as defined in section 
                                435(m), that exceeds the national 
                                average, as determined by the Secretary 
                                in accordance with such section; and
                                    ``(II) the institution has an 
                                aggregate amount of defaulted loans, as 
                                determined by the Secretary, that 
                                places the institution in the highest 1 
                                percent of institutions participating 
                                in programs authorized under this title 
                                in terms of the aggregate amount of 
                                defaulted loans.
                            ``(iii) In the case of proprietary 
                        institutions of higher education, the 
                        institution received more than 80 percent of 
                        the institution's revenues from Federal funds 
                        as defined in section 102(b)(2)(B), during the 
                        2 most recent years for which data is 
                        available.
                            ``(iv) The institution is among the top 1 
                        percent of institutions participating in 
                        programs authorized under this title in terms 
                        of numbers or rates of complaints related to 
                        Federal student financial aid, educational 
                        practices and services, or recruiting and 
                        marketing practices, as reported in the 
                        complaint tracking system established under 
                        section 161.
                            ``(v) As of the date of the determination, 
                        the institution is among the top 1 percent of 
                        institutions in terms of low graduation rates, 
                        as determined by the Secretary, of all 
                        institutions participating in programs 
                        authorized under this title.
                            ``(vi) The institution spends more than 20 
                        percent of the institution's revenues on 
                        recruiting and marketing activities and 
                        executive compensation.
                            ``(vii) In the fiscal year immediately 
                        following the most recent cohort default rate 
                        period--
                                    ``(I) the institution's loan 
                                defaults increased by 50 percent or 
                                more as compared to the preceding 
                                period; and
                                    ``(II) more than 50 percent of the 
                                students attending the institution 
                                received loans under this title.
                            ``(viii) The institution has been put on 
                        probation by, or is subject to a show cause 
                        order from, a nationally recognized accrediting 
                        agency or association that is recognized by the 
                        Secretary pursuant to part H of title IV;
                            ``(ix) The institution, or an executive of 
                        the institution, has publicly acknowledged or 
                        disclosed that the institution--
                                    ``(I) is in violation or 
                                noncompliance with any provision of law 
                                administered by a relevant Federal 
                                agency or relevant State entity or 
                                agency; or
                                    ``(II) is being investigated 
                                regarding a potential violation of such 
                                provision of law.
                            ``(x) The institution--
                                    ``(I) is a proprietary institution 
                                of higher education that has acquired a 
                                nonprofit institution of higher 
                                education at any point during the 1-
                                year period preceding the date of the 
                                determination; or
                                    ``(II) was a proprietary 
                                institution of higher education and has 
                                become a nonprofit institution of 
                                higher education at any time during the 
                                1-year period preceding the date of the 
                                determination.
                    ``(B) Publication of institutions reviewed.--The 
                Secretary shall--
                            ``(i) post, on a publicly available 
                        website, the name of each institution of higher 
                        education that is reviewed under subparagraph 
                        (A);
                            ``(ii) indicate, on such website, with 
                        respect to each such institution, which of the 
                        mandatory review criteria, as described in 
                        subparagraph (A), such institution met; and
                            ``(iii) indicate on the College Navigator 
                        website of the Department, or any successor 
                        website, the name of each institution of higher 
                        education that is reviewed under subparagraph 
                        (A).
                    ``(C) Institutional disclosure of review.--Each 
                institution of higher education that is reviewed under 
                subparagraph (A) shall--
                            ``(i) post on the home page of the 
                        institution's website that the institution will 
                        be subject to a mandatory program review and 
                        why the institution is being reviewed and shall 
                        maintain such posting and explanation for 1 
                        year or until the Secretary has issued its 
                        final program review report under subsection 
                        (c)(5)(C), whichever occurs sooner;
                            ``(ii) provide a clear, conspicuous 
                        disclosure of the information described in 
                        clause (i) to students who inquire about 
                        admission to the institution or submit an 
                        application for admission to the institution 
                        prior to the student signing an enrollment 
                        agreement with the institution, for 1 year or 
                        until the Secretary has issued the final 
                        program review report under subsection 
                        (c)(6)(C), whichever occurs sooner; and
                            ``(iii) include the information described 
                        in clause (i) on materials of acceptance or 
                        admission submitted to each student before the 
                        student enrolls in the institution, for 1 year 
                        or until the Secretary has issued the final 
                        program review report under subsection 
                        (c)(6)(C), whichever occurs sooner.
            ``(3) Risk-based reviews.--
                    ``(A) In general.--The Secretary shall use a risk-
                based approach to select, on an annual basis not less 
                than 2 percent of institutions of higher education 
                participating in a program authorized under this title 
                that are not reviewed under paragraph (2), for a 
                program review. This approach shall prioritize program 
                reviews of institutions that--
                            ``(i) have received large increases in 
                        funding under this title during the 5-year 
                        period preceding the date of the determination;
                            ``(ii) have a large proportion of overall 
                        revenue from Federal funds, as defined in 
                        section 102(b)(2)(B);
                            ``(iii) have a significant fluctuation in 
                        Federal Direct Stafford Loan volume, Federal 
                        Pell Grant award volume, or any combination 
                        thereof, in the year for which the 
                        determination is made, compared to the year 
                        prior to such year, that is not accounted for 
                        by changes in the Federal Direct Stafford Loan 
                        program, the Federal Pell Grant program, or any 
                        combination thereof;
                            ``(iv) have experienced sharp increases in 
                        enrollment in absolute numbers or rate of 
                        growth;
                            ``(v) have high rates of defaults, relative 
                        to all other institutions of higher education 
                        participating in a program authorized under 
                        this title, for loans issued under this title 
                        over the lifetime of the loans;
                            ``(vi) have a large aggregate dollar amount 
                        of loans under this title in default, or a high 
                        cohort default rate as described in section 
                        435(m);
                            ``(vii) have a high student default risk, 
                        as compared to the student default risk for all 
                        institutions participating in a program under 
                        this title;
                            ``(viii) have a high proportion or high 
                        rate of complaints related to Federal student 
                        financial aid, educational practices and 
                        services, or recruiting and marketing 
                        practices, as reported in the complaint 
                        tracking system established under section 161;
                            ``(ix) have extremely low graduation rates, 
                        as determined by the Secretary;
                            ``(x) are in poor financial health 
                        according to financial responsibility standards 
                        described in section 498(c);
                            ``(xi) are spending a large percentage of 
                        the institution's revenues on recruiting and 
                        marketing activities and executive 
                        compensation;
                            ``(xii) in the case of proprietary 
                        institutions of higher education, have large 
                        profit margins and profit growth;
                            ``(xiii) have been put on notice or warning 
                        by its accrediting agency;
                            ``(xiv) has been found to have compliance 
                        problems under this title, or is at significant 
                        risk of failing to comply with applicable 
                        Federal or State laws, by a relevant Federal 
                        agency or a relevant State entity or agency, 
                        including the Comptroller General of the United 
                        States;
                            ``(xv) has had a large amount of funds 
                        returned under section 484B; or
                            ``(xvi) in the case of proprietary 
                        institutions of higher education, have 
                        experienced a change in ownership or control of 
                        the institution, including a buyout.
                    ``(B) Criteria for risk-based reviews.--The 
                Secretary shall publish, and update as necessary, the 
                specific criteria that the Secretary will use to 
                determine which institutions of higher education are 
                selected for risk-based reviews under subparagraph (A).
            ``(4) Public disclosure of violations.--The Secretary 
        shall--
                    ``(A) post on the College Navigator website, or any 
                successor website, of the Department, the name of each 
                institution of higher education that is found to have 
                violated a provision of this title knowingly and 
                willfully or with gross negligence;
                    ``(B) indicate on such website, with respect to 
                each such institution, which of the provisions of this 
                title the institution violated; and
                    ``(C) maintain such posting until the date the 
                institution of higher education rectifies the violation 
                or the date that is 1 year after the date the Secretary 
                issues the final program review report under subsection 
                (c)(6)(C) with respect to such institution, whichever 
                date is later.
            ``(5) Institutional disclosure of violations.--Each 
        institution of higher education that is found to have violated 
        a provision of this title knowingly and willfully or with gross 
        negligence shall--
                    ``(A) not later than 15 days after the date of 
                issuance of the final program review report containing 
                the finding, post on the home page of the institution's 
                website that the institution has been found to have 
                violated a provision of this title knowingly and 
                willfully or with gross negligence, including the 
                provision the institution was found to have violated;
                    ``(B) maintain such posting until the date the 
                institution rectifies the violation or the date that is 
                1 year after the date the Secretary issues the final 
                program review report under subsection (c)(6)(C) with 
                respect to such institution, whichever date is later; 
                and
                    ``(C) include the information described in 
                subparagraph (A) on materials of acceptance or 
                admission submitted to each student before the student 
                enrolls in the institution until the date the 
                institution rectifies the violation or the date that is 
                1 year after the date the Secretary issues the final 
                program review report under subsection (c)(6)(C) with 
                respect to such institution, whichever date is later.
    ``(c) Characteristics of Program Reviews.--
            ``(1) Notice.--The Secretary may give not more than 72 
        hours notice to an institution of higher education that will 
        undergo a program review pursuant to subsection (b) of such 
        review.
            ``(2) Sharing of information.--The Secretary shall share 
        all final program review determinations conducted under this 
        section with relevant Federal agencies and relevant State 
        entities or agencies, and appropriate accrediting agencies and 
        associations, to enable such agencies, entities, and 
        associations to determine the eligibility of institutions for 
        funds or accreditation.
            ``(3) Interaction with other federal agencies and laws.--To 
        the extent practicable, the Secretary shall coordinate program 
        reviews conducted under this section with other reviews and 
        audits conducted by the Department, and with relevant Federal 
        agencies and relevant State entities or agencies.
            ``(4) Violations discovered through program review.--
                    ``(A) Violations of this title.--If, in the course 
                of conducting a program review, the Secretary obtains 
                evidence that any institution of higher education or 
                person has engaged in conduct that may constitute a 
                violation of this title, including a failure to fully 
                comply with the program review process and reporting 
                requirements under this section, the Secretary may 
                sanction such institution or person, pursuant to 
                section 489A.
                    ``(B) Violations of other federal laws.--If, in the 
                course of conducting a program review, the Secretary 
                obtains evidence that any institution of higher 
                education or person has engaged in conduct that may 
                constitute a violation of Federal law, the Secretary 
                shall transmit such evidence to the Attorney General of 
                the United States, the Director of the Bureau of 
                Consumer Financial Protection, the Commissioner of the 
                Federal Trade Commission, or the head of any other 
                appropriate Federal agency who may institute 
                proceedings under appropriate law.
                    ``(C) Rule of construction.--Nothing in this 
                paragraph shall be constructed to affect any other 
                authority of the Secretary to disclose information.
            ``(5) Conduct of reviews.--When conducting program reviews 
        under this section, the Secretary shall assess the institution 
        of higher education's compliance with the provisions of this 
        title. Each program review shall include, at a minimum, the 
        following:
                    ``(A) With regard to the institutional information, 
                the Secretary shall assess financial capability, 
                administrative capability, and program integrity, 
                including whether the institution--
                            ``(i) knowingly and willfully misused 
                        Federal student aid from any source;
                            ``(ii) violated section 487(a)(20);
                            ``(iii) engaged in any substantial 
                        misrepresentation or other serious violation, 
                        as defined in section 489A; or
                            ``(iv) violated the program integrity 
                        regulations promulgated by the Secretary under 
                        this Act.
                    ``(B) With regard to student information, the 
                Secretary shall examine--
                            ``(i) graduation rates compared with all 
                        other institutions participating in a program 
                        authorized under this title;
                            ``(ii) student complaints, including 
                        interviews with current and former students, 
                        faculty and staff, and accrediting agencies; 
                        and
                            ``(iii) information from the complaint data 
                        system established under section 161.
            ``(6) Administrative process.--
                    ``(A) Training.--The Secretary shall provide 
                training, including investigative training, to 
                personnel of the Department designed to improve the 
                quality of financial and compliance audits and program 
                reviews conducted under this section, including 
                instruction about appropriately and effectively 
                conducting such audits and reviews for institutions of 
                higher education from different sectors of higher 
                education.
                    ``(B) Carrying out program reviews.--In carrying 
                out program reviews under this section, the Secretary 
                shall--
                            ``(i) establish guidelines designed to 
                        ensure uniformity of practice in the conduct of 
                        such reviews;
                            ``(ii) make available to each institution 
                        of higher education participating in a program 
                        authorized under this title complete copies of 
                        all review guidelines and procedures used in 
                        program reviews, except that internal training 
                        materials for Department staff related to 
                        identifying instances of fraud, 
                        misrepresentation, or intentional noncompliance 
                        shall not be disclosed;
                            ``(iii) permit an institution of higher 
                        education to correct or cure an administrative, 
                        accounting, or recordkeeping error within 90 
                        days of the issuance of the final program 
                        review report, if the error is not part of a 
                        pattern of error and there is no evidence of 
                        fraud or misconduct related to the error;
                            ``(iv) without sharing personally 
                        identifiable information and in accordance with 
                        section 444 of the General Education Provisions 
                        Act (20 U.S.C. 1232g, commonly known as the 
                        `Family Educational Rights and Privacy Act of 
                        1974'), inform the relevant Federal agencies 
                        and relevant State entities or agencies, and 
                        accrediting agency or association, whenever the 
                        Secretary finds a violation of this title or 
                        sanctions an institution of higher education 
                        under section 432, 489A, or 498; and
                            ``(v) provide to an institution of higher 
                        education 90 calendar days to review and 
                        respond to any program review report and 
                        relevant materials related to the report before 
                        any final program review report is issued.
                    ``(C) Final program review determination.--
                            ``(i) In general.--Not later than 180 
                        calendar days after issuing a program review 
                        report under this section, the Secretary shall 
                        review and consider an institution of higher 
                        education's response, and issue a final program 
                        review determination or audit determination. 
                        The final determination shall include--
                                    ``(I) a written statement 
                                addressing the institution of higher 
                                education's response;
                                    ``(II) a written statement of the 
                                basis for such determination; and
                                    ``(III) a copy of the institution's 
                                response.
                            ``(ii) Confidentiality.--The Secretary 
                        shall maintain and preserve at all times the 
                        confidentiality of any program review report 
                        until a final program review determination is 
                        issued, other than to inform the relevant 
                        Federal agencies and relevant State entities or 
                        agencies, and accrediting agency or 
                        association, as required under this section.
                    ``(D) Reports disclosed to the institution.--The 
                Secretary shall promptly disclose each program review 
                report and each final program review determination to 
                the institution of higher education under review.
                    ``(E) Removal of personally identifiable 
                information.--Any personally identifiable information 
                from the education records of students shall be removed 
                from any program review report or final program review 
                determination before the report is shared with any 
                relevant Federal agency, State entity or agency, or 
                accrediting agency or association.
            ``(7) Follow-up reviews after violations.--The Secretary 
        shall conduct follow-up reviews of each institution of higher 
        education that has been found in violation of a provision of 
        this title not later than 1 year after the date of such 
        finding. Such follow-up reviews may only assess whether the 
        institution of higher education has corrected violations found 
        in a previous program review or final program review 
        determination.''.

        PART I--STATE-FEDERAL COLLEGE AFFORDABILITY PARTNERSHIP

SEC. 499. STATE-FEDERAL COLLEGE AFFORDABILITY PARTNERSHIP.

    Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) is amended by adding at the end the following:

       ``PART J--STATE-FEDERAL COLLEGE AFFORDABILITY PARTNERSHIP

``SEC. 499-1. PURPOSE.

    ``The purpose of this part is to establish a State-Federal 
partnership that incentivizes State investment in public higher 
education.

``SEC. 499-2. DEFINITIONS.

    ``In this part:
            ``(1) Eligible state.--The term `eligible State' means a 
        State that provides net State operating support per FTE student 
        in an amount equal to not less than 50 percent of the amount 
        that reflects the maximum Federal Pell Grant award amount.
            ``(2) Full-time equivalent student number.--The term `full-
        time equivalent student number' means a number that reflects 
        the sum of the number of students enrolled full time at a 
        public institution of higher education in the State, plus the 
        full-time equivalent of the number of students enrolled part 
        time (determined on the basis of the quotient of the sum of the 
        credit hours of all part-time students divided by 12) at such 
        institutions. The Secretary may establish a methodology for 
        calculating the full-time equivalent student number and may 
        offer guidance to States in determining the State's full-time 
        equivalent student number for purposes of this part.
            ``(3) Net state operating support.--The term `net State 
        operating support' means an amount that is equal to the amount 
        of State funds and local government appropriations used to 
        support public higher education annual operating expenses in 
        the State, calculated in accordance with subparagraphs (A) and 
        (B).
                    ``(A) Calculation.--A State's net State operating 
                support shall be an amount that is equal to the 
                difference resulting from the gross amount of State 
                funds annually appropriated for public higher education 
                operating expenses in the State; minus--
                            ``(i) such appropriations that are returned 
                        to the State;
                            ``(ii) State-appropriated funds derived 
                        from Federal sources, including funds provided 
                        under this part;
                            ``(iii) local government funds not 
                        appropriated for operating support for public 
                        higher education;
                            ``(iv) amounts that are portions of multi-
                        year appropriations to be distributed over 
                        multiple years;
                            ``(v) tuition charges remitted to the State 
                        to offset State appropriations;
                            ``(vi) State funding for students in non-
                        credit continuing or adult education courses 
                        and non-credit extension courses;
                            ``(vii) sums appropriated to private 
                        nonprofit institutions of higher education, or 
                        to proprietary institutions of higher 
                        education, for capital outlay or operating 
                        expenses; and
                            ``(viii) any other funds excluded under 
                        subparagraph (B).
                    ``(B) Exclusions.--Net State operating support does 
                not include funds for--
                            ``(i) student aid programs that provide 
                        grants to students attending in-State private 
                        nonprofit institutions of higher education, in-
                        State proprietary institutions of higher 
                        education, independent institutions, in-State 
                        public institutions, and out-of-State 
                        institutions;
                            ``(ii) capital outlay;
                            ``(iii) deferred maintenance;
                            ``(iv) research and development; or
                            ``(v) any other funds that the Secretary 
                        may exclude.
            ``(4) Net state operating support per fte student.--The 
        term `Net State Operating Support per FTE student' means, for a 
        fiscal year--
                    ``(A) the net State operating support for the 
                previous fiscal year; divided by
                    ``(B) the full-time equivalent student number for 
                the previous fiscal year.
            ``(5) Public institution.--The term `public institution' 
        means an institution of higher education (as defined in section 
        101) whose liabilities are backed by the full faith and credit 
        of the State or its equivalent, as determined in accordance 
        with section 668.15 of title 34, Code of Federal Regulations, 
        or any successor regulation.
            ``(6) Private nonprofit institution of higher education.--
        The term `private nonprofit institution of higher education' 
        means an institution of higher education, as defined in section 
        102, that is a private nonprofit institution.
            ``(7) Proprietary institution of higher education.--The 
        term `proprietary institution of higher education' has the 
        meaning given the term in section 102(b).

``SEC. 499-3. AUTHORIZATION; USE OF FUNDS.

    ``(a) Authorization.--The Secretary shall award annual block grants 
to eligible States to encourage States to provide additional funding 
for public higher education.
    ``(b) Use of Funds by States.--An eligible State receiving a block 
grant under this part shall allocate 100 percent of block grant funding 
to public institutions for public higher education expenditures in 
accordance with subsection (c).
    ``(c) Use of Funds by Public Institutions.--A public institution 
that receives funds under this title shall--
            ``(1) use a portion of such funds to directly reduce 
        tuition costs or mitigate the need to raise tuition and fees 
        for students residing in the State;
            ``(2) use a portion of such funds to support the enrollment 
        of low-income students (as measured by eligibility for Federal 
        Pell Grants) in the institution; and
            ``(3) create a publicly available report that documents an 
        institution's efforts to satisfy the requirements described in 
        paragraphs (1) and (2).
    ``(d) Prohibitions.--
            ``(1) No use for endowments.--A public institution may not 
        use funds received under this title to increase its endowment.
            ``(2) No use for athletic or commercial venues.--No funds 
        awarded under this title may be used for the modernization, 
        renovation, or repair of stadiums or other facilities of a 
        public institution primarily used for athletic contests or 
        events for which admission is charged to the general public.
    ``(e) State Limitations on Institutions.--Nothing in this section 
shall be construed to prohibit a State from establishing additional 
requirements for public institutions in the State for the purpose of 
increasing the affordability of higher education.

``SEC. 499-4. GRANT FORMULA.

    ``(a) Grant Formula.--The Secretary shall award a block grant to an 
eligible State for a fiscal year in an amount equal to the product of--
            ``(1) the marginal Federal match amount, as determined 
        under subsection (b) for the fiscal year and adjusted in 
        accordance with subsection (c); multiplied by
            ``(2) the full-time equivalent student number for the 
        previous fiscal year.
    ``(b) Federal Match Amount.--The Federal match amount will be 
determined in accordance with the following table:

``Net State Operating Support Per   Federal match amount per FTE 
        FTE student                         student
    Below $2,865...................
                                        No match
    $2,865 to $4,388...............
                                        20% of the excess over $2,865
    $4,389 to $5,443...............
                                        $304.6, plus 30% of the excess 
                                                over $4,389
    $5,444 to $6,303...............
                                        $620.8, plus 40% of the excess 
                                                over $5,444
    $6,304 to $7,449...............
                                        $964.4, plus 50% of the excess 
                                                over $6,304
    $7,450 to $8,595...............
                                        $1,536.9, plus 10% of the 
                                                excess over $7,450
    Above $8,595...................
                                        No match above $1,651.4.
    ``(c) Adjustments Based on the Maximum Federal Pell Grant Amount.--
For each award year subsequent to 2014, the dollar amounts in the table 
under subsection (b) shall only be increased (rounded to the nearest 
dollar) by the percentage by which--
            ``(1) the maximum Pell Grant award amount for such award 
        year, exceeds
            ``(2) $5,730.
    ``(d) Ratable Reduction.--If the sums made available under this 
part for any fiscal year are insufficient to pay the full amounts that 
all States are eligible to receive in accordance with this section for 
such year, the Secretary shall establish procedures for ratably 
reducing each State's award amount.

``SEC. 499-5. ACCOUNTABILITY AND ENFORCEMENT.

    ``(a) Annual Report.--
            ``(1) In general.--Beginning for the first fiscal year 
        after a State receives a block grant under this part, the State 
        shall prepare and submit an annual report to the Secretary, 
        which shall include detailed information about the State's use 
        of grant funds to increase the affordability of public higher 
        education and increase the enrollment of low-income students 
        (as measured by eligibility for a Federal Pell Grant).
            ``(2) Contents.--A report described in paragraph (1) 
        shall--
                    ``(A) describe all actions taken to incentivize 
                public institutions to reduce tuition costs, or 
                mitigate the need to raise tuition and fees for in-
                State students;
                    ``(B) explain the extent to which public 
                institutions supported the enrollment of low-income 
                students who are eligible for Federal Pell Grants or 
                other need-based financial assistance;
                    ``(C) disclose how the State distributed the 
                allotment provided under this part to all public 
                institutions, and the rationale for such distribution;
                    ``(D) include the aggregated graduation rates for 
                low-income students (based on eligibility for Federal 
                Pell Grants), part-time students, and transfer 
                students, disaggregated by type of degree or 
                credential; and
                    ``(E) be publicly available in a manner that is 
                easily accessible to parents, students, and consumer 
                advocates.
    ``(b) Maintaining Net State Operating Support Per FTE Student.--
            ``(1) In general.--Each State receiving an allotment under 
        this part for a fiscal year shall--
                    ``(A) ensure that the amount expended by the State, 
                from funds derived from non-Federal sources, for net 
                State operating support per FTE student for the 
                preceding fiscal year was not less than the amount 
                expended by the State for net State operating support 
                per FTE student for the second preceding fiscal year; 
                and
                    ``(B) demonstrate the State's compliance with 
                subparagraph (A) by providing the Secretary with a 
                written assurance and detailed documentation.
            ``(2) Penalty.--If a State does not comply with paragraph 
        (1), the State's grant award under this part shall be reduced 
        by an amount equal to the product of--
                    ``(A) the difference between--
                            ``(i) the net State operating support per 
                        FTE student for the second preceding fiscal 
                        year; minus
                            ``(ii) the net State operating support per 
                        FTE student for the preceding fiscal year; 
                        multiplied by
                    ``(B) the full-time equivalent student number for 
                the previous fiscal year.
    ``(c) Maintenance of Effort for State-Based Financial Aid.--Each 
State receiving an allotment under this part for a fiscal year shall, 
as a condition of receiving the allotment, maintain the level of State 
student financial aid support provided for costs associated with 
postsecondary education at not less than the level of such support 
provided for the academic year immediately preceding the year for which 
the State is receiving the allotment.
    ``(d) Authority To Compromise.--Notwithstanding subsections (b) and 
(c), the Secretary may waive any maintenance of support and effort 
requirement described in such subsections for a State if there is a 
clear case of a significant economic downturn in the State. Such 
determination shall only be made by the Secretary following a written 
appeal by the State that documents recent and significant decreases in 
economic activity in the State.

``SEC. 499-6. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2015 and each of the five 
succeeding fiscal years.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. RULE OF CONSTRUCTION.

    Section 501 (20 U.S.C. 1101) is amended--
            (1) in the section heading, by striking ``and program 
        authority'' and inserting ``program authority; rule of 
        construction''; and
            (2) by adding at the end the following:
    ``(d) Rule of Construction.--Nothing in this Act shall be construed 
to restrict an institution from using funds provided under a section of 
this title for activities and uses that were authorized under such 
section on the day before the date of enactment of the Higher Education 
Affordability Act.''.

SEC. 502. AUTHORIZED ACTIVITIES UNDER PART A OF TITLE V.

    Section 503 (20 U.S.C. 1101b) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Authorized Activities.--Grants awarded under this section 
shall be used for 1 or more of the following activities:
            ``(1) The purchase, rental, or lease of educational 
        resources.
            ``(2) The construction, maintenance, renovation, or joint 
        use and improvement of classrooms, libraries, laboratories, or 
        other instructional facilities, including the integration of 
        computer technology into institutional facilities to create 
        smart buildings.
            ``(3) Support of faculty exchanges, faculty development, 
        and faculty fellowships to assist members of the faculty in 
        attaining advanced degrees in their field of instruction.
            ``(4) Student support services, including the development 
        and improvement of academic programs, tutoring, counseling, 
        school sanctioned travel, and financial literacy for students 
        and families.
            ``(5) Improving funds management, administrative 
        management, and the acquisition of equipment for use in 
        strengthening funds management.
            ``(6) Maintaining financial stability through establishing 
        or developing a contributions development office or endowment 
        fund.
            ``(7) Other activities proposed in the application 
        submitted pursuant to section 521(b)(1) that--
                    ``(A) contribute to carrying out the purposes of 
                the program assisted under this part; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by inserting ``75 percent 
                of'' after ``equal to or greater than''; and
                    (B) by adding at the end the following:
            ``(4) Scholarship.--A Hispanic-serving institution that 
        uses grant funds under this title to establish or increase an 
        endowment fund may use the interest proceeds from such 
        endowment to provide scholarships to students for the purposes 
        of attending such institution.''.

SEC. 503. DURATION OF GRANTS UNDER TITLE V.

    Section 504 (20 U.S.C. 1101c) is amended by adding at the end the 
following:
    ``(c) Requirement for Fourth and Fifth Year of Funding.--
            ``(1) In general.--Before receiving funding under this 
        title for the fourth or fifth year of the grant, each Hispanic-
        serving institution receiving a grant under this title shall 
        demonstrate to the Secretary that the institution is making 
        progress in implementing the activities described in the 
        institution's application under section 521(b)(1) at a rate 
        that the Secretary determines will result in the full 
        implementation of those activities during the remainder of the 
        grant period.
            ``(2) Consideration of data and information.--The Secretary 
        shall consider any data or information provided to the 
        Department by grantees for the continued receipt of grants 
        under this title under paragraph (1) that is considered in 
        accordance with regulations issued by the Secretary before the 
        date of enactment of the Higher Education Affordability Act. 
        Any requirements the Secretary develops for institutions in 
        accordance with regulations issued by the Secretary after the 
        date of enactment of the Higher Education Affordability Act to 
        carry out this subsection shall take into account the capacity 
        and resources of institutions to comply with such 
        requirements.''.

SEC. 504. AUTHORIZED ACTIVITIES UNDER PART B OF TITLE V.

    Section 513 (20 U.S.C. 1102b) is amended to read as follows:

``SEC. 513. AUTHORIZED ACTIVITIES.

    ``Grants awarded under this part shall be used for 1 or more of the 
following activities:
            ``(1) The purchase, rental, or lease of educational 
        resources.
            ``(2) The construction, maintenance, renovation, or joint 
        use and improvement of classrooms, libraries, laboratories, or 
        other instructional facilities, including the integration of 
        computer technology into institutional facilities to create 
        smart buildings.
            ``(3) Support of faculty exchanges, faculty development, 
        and faculty fellowships to assist members of the faculty in 
        attaining advanced degrees in their field of instruction.
            ``(4) Support for low-income postbaccalaureate students, 
        including outreach, academic support services, mentoring, 
        scholarships, fellowships, and other financial assistance to 
        permit the enrollment of low-income students in 
        postbaccalaureate certificate programs and postbaccalaureate 
        degree granting programs.
            ``(5) Collaboration with other institutions of higher 
        education to expand postbaccalaureate certificate and 
        postbaccalaureate degree offerings.
            ``(6) Other activities proposed in the applications 
        submitted pursuant to section 514(a) and section 521(b)(1) 
        that--
                    ``(A) contribute to carrying out the purposes of 
                this part; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.''.

SEC. 505. DURATION OF GRANTS UNDER PART B OF TITLE V.

    Section 514 (20 U.S.C. 1102c) is amended by adding at the end the 
following:
    ``(d) Requirement for Fourth and Fifth Year of Funding.--
            ``(1) In general.--Before receiving funding under this part 
        for the fourth or fifth year of the grant, each Hispanic-
        serving institution receiving a grant under this part shall 
        demonstrate to the Secretary that the institution is making 
        progress in implementing the activities described in the 
        institution's applications under subsection (a) and section 
        521(b)(1) at a rate that the Secretary determines will result 
        in the full implementation of those activities during the 
        remainder of the grant period.
            ``(2) Consideration of data and information.--The Secretary 
        shall consider any data or information provided to the 
        Department by grantees for the continued receipt of grants 
        under this title under paragraph (1) that is considered in 
        accordance with regulations issued by the Secretary before the 
        date of enactment of the Higher Education Affordability Act. 
        Any requirements the Secretary develops for institutions in 
        accordance with regulations issued by the Secretary after the 
        date of enactment of the Higher Education Affordability Act to 
        carry out this subsection shall take into account the capacity 
        and resources of institutions to comply with such 
        requirements.''.

SEC. 506. WAIVER AUTHORITY; REPORTING REQUIREMENT; TECHNICAL 
              ASSISTANCE.

    Part C of title V (20 U.S.C. 1103 et seq.) is further amended--
            (1) by redesignating section 528 as section 529; and
            (2) by inserting after section 527 the following:

``SEC. 528. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide technical 
assistance, as requested, to institutions that receive grants under 
part A or B to assist such institutions in the use or development of 
student data for the purposes of supporting students' progress and 
completion at such institutions.
    ``(b) Requirements.--In order to provide institutions with the 
assistance necessary to carry out this section, institutions who 
receive grants under part A shall report to the Secretary on--
            ``(1) the number and percentage of undergraduate students 
        who, upon entry into the institution, matriculate into a major 
        field of study or other program leading to a postsecondary 
        certificate, an associate's degree, or a baccalaureate degree;
            ``(2) student persistence data for the institution's 
        undergraduates, demonstrating how many students are 
        continuously enrolled in the institution, which shall be 
        measured in a manner proposed by the institution and approved 
        by the Secretary; and
            ``(3) data on the number of undergraduate students making 
        satisfactory academic progress, as defined in regulations 
        promulgated by the Department at the time such data is 
        reported.''.

SEC. 507. AUTHORIZATIONS OF APPROPRIATIONS FOR DEVELOPING INSTITUTIONS.

    Section 529(a), as redesignated by paragraph (1) of section 506, is 
amended--
            (1) in paragraph (1), by striking ``$175,000,000 for fiscal 
        year 2009 and such sums as may be necessary for each of the 
        five succeeding fiscal years'' and inserting ``such sums as may 
        be necessary for fiscal year 2015 and such sums as may be 
        necessary for each of the five succeeding fiscal years''; and
            (2) in paragraph (2), by striking ``$100,000,000 for fiscal 
        year 2009 and such sums as may be necessary for each of the 
        five succeeding fiscal years'' and inserting ``such sums as may 
        be necessary for fiscal year 2015 and such sums as may be 
        necessary for each of the five succeeding fiscal years''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. TECHNICAL AND CONFORMING AMENDMENT.

    Section 631(a)(2) (20 U.S.C. 1132(a)(2)) is amended by striking 
``and'' after the semicolon.

SEC. 602. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL AND FOREIGN 
              LANGUAGE STUDIES.

    Section 610 (20 U.S.C. 1128b) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 603. AUTHORIZATION OF APPROPRIATIONS FOR BUSINESS AND 
              INTERNATIONAL EDUCATION PROGRAMS.

    Section 614 (20 U.S.C. 1130b) is amended--
            (1) in subsection (a), by striking ``2009'' and inserting 
        ``2015''; and
            (2) in subsection (b), by striking ``2009'' and inserting 
        ``2015''.

SEC. 604. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE FOR 
              INTERNATIONAL PUBLIC POLICY.

    Section 629 (20 U.S.C. 1131f) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 605. AUTHORIZATION OF APPROPRIATIONS FOR THE SCIENCE AND 
              TECHNOLOGY ADVANCED FOREIGN LANGUAGE EDUCATION GRANT 
              PROGRAM.

    Section 637(f) (20 U.S.C. 1132-6(f)) is amended by striking 
``2009'' and inserting ``2015''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 701. AUTHORIZATION OF APPROPRIATIONS FOR THE JACOB K. JAVITS 
              FELLOWSHIP PROGRAM.

    Section 705 (20 U.S.C. 1134d) is amended by striking ``$30,000,000 
for fiscal year 2009'' and inserting ``such sums as may be necessary 
for fiscal year 2015''.

SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR GRADUATE ASSISTANCE IN 
              AREAS OF NATIONAL NEED.

    Section 716 (20 U.S.C. 1135e) is amended by striking ``$35,000,000 
for fiscal year 2009'' and inserting ``such sums as may be necessary 
for fiscal year 2015''.

SEC. 703. AUTHORIZATION OF APPROPRIATIONS FOR THE THURGOOD MARSHALL 
              LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

    Section 721(h) (20 U.S.C. 1136(h)) is amended by striking 
``$5,000,000 for fiscal year 2009'' and inserting ``such sums as may be 
necessary for fiscal year 2015''.

SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR MASTERS DEGREE PROGRAMS 
              AT HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND 
              PREDOMINANTLY BLACK INSTITUTIONS.

    Section 725 (20 U.S.C. 1136c) is amended--
            (1) in subsection (a), by striking ``2009'' and inserting 
        ``2015''; and
            (2) in subsection (b), by striking ``2009'' and inserting 
        ``2015''.

SEC. 705. AUTHORIZATION OF APPROPRIATIONS FOR THE FUND FOR IMPROVEMENT 
              OF POSTSECONDARY EDUCATION.

    Section 745 (20 U.S.C. 1138d) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 706. CORRECTLY RECOGNIZING EDUCATIONAL ACHIEVEMENTS TO EMPOWER 
              GRADUATES.

    Title VII (20 U.S.C. 1133 et seq.) is amended by inserting after 
part B the following:

  ``PART C--CORRECTLY RECOGNIZING EDUCATIONAL ACHIEVEMENTS TO EMPOWER 
                               GRADUATES

``SEC. 751. PURPOSE.

    ``The purpose of this part is to award grants to States to support 
efforts at institutions of higher education, or within systems of 
higher education, to increase postsecondary degree attainment by--
            ``(1) locating, and conferring degrees to, students who 
        have accumulated sufficient applicable postsecondary credits 
        and maintained satisfactory academic progress to earn an 
        associate's degree but did not receive one;
            ``(2) providing outreach to those students who are within 
        12 credits of earning an associate's degree; and
            ``(3) establishing partnerships between 2-year and 4-year 
        institutions of higher education in States, in order to 
        strengthen the transition pathways into 4-year institutions of 
        higher education for transfer students.

``SEC. 752. GRANTS TO INCREASE DEGREE ATTAINMENT.

    ``(a) Definition of Institution of Higher Education.--In this 
section, the term `institution of higher education' has the meaning 
given the term in section 101(a).
    ``(b) Program Authorized.--
            ``(1) In general.--From amounts appropriated under 
        subsection (j), the Secretary shall award grants, on a 
        competitive basis, to States to enable the States to carry out 
        the activities described in subsections (e) and (f) in order to 
        support efforts at institutions of higher education, or within 
        systems of higher education, to increase degree attainment.
            ``(2) Partnerships allowed.--A State may apply for a grant 
        under this section in partnership with a nonprofit 
        organization. In any such partnership, the State higher 
        education agency or other State agency described in subsection 
        (c)(1) shall serve as the fiscal agent for purposes of the 
        grant.
            ``(3) Duration.--Grants awarded under this section shall be 
        for a period of 3 years.
    ``(c) Submission and Contents of Application.--
            ``(1) In general.--The State, acting through the State 
        higher education agency or other State agency determined 
        appropriate by the Governor or chief executive officer of the 
        State, shall submit an application to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may require.
            ``(2) Contents.--An application submitted under paragraph 
        (1) shall include the following:
                    ``(A) A description of the State's capacity to 
                administer the grant under this section and report 
                annually to the Secretary on the progress of the 
                activities and services described in subsection (e).
                    ``(B) A description of how the State will meet the 
                purpose of the grant program under this part through 
                outreach and memoranda of understanding with 
                institutions of higher education, including the State's 
                plan for using grant funds to meet the requirements of 
                subsections (e) and (g) and, if the State elects to use 
                grant funds under such subsection to create strong 
                articulation agreements, subsection (f)(2).
                    ``(C) A description of how the State will 
                coordinate with appropriate stakeholders, including 
                institutions of higher education, data-sharing agencies 
                within the State, and other States.
                    ``(D) A description of--
                            ``(i) the structure that the State has in 
                        place to administer the activities and services 
                        described in subsection (e), including--
                                    ``(I) the capacity of the State's 
                                longitudinal data system to--
                                            ``(aa) be clean of record 
                                        duplication and ensure 
                                        alignment of State and 
                                        institutional credit completion 
                                        records;
                                            ``(bb) include transfer 
                                        flags and course and credit 
                                        data to allow the State to run 
                                        initial degree audits for 
                                        institutions;
                                            ``(cc) include all 
                                        postsecondary educational 
                                        institutions in the State, 
                                        including public, private 
                                        nonprofit, and private for-
                                        profit institutions; and
                                            ``(dd) have in place 
                                        mechanisms to share data across 
                                        institutions, systems, and 
                                        States;
                                    ``(II) the capacity of the agency 
                                governing the State's longitudinal 
                                system to respond to data requests 
                                accurately and in a timely manner; and
                                    ``(III) the State's plan to protect 
                                student privacy with respect to data in 
                                the State longitudinal data system and 
                                comply with section 444 of the General 
                                Education Provisions Act (commonly 
                                referred to as the `Family Educational 
                                Rights and Privacy Act of 1974'); or
                            ``(ii) the State's plan to develop the 
                        structure described in clause (i) as part of 
                        the activities carried out under the grant.
    ``(d) Award Basis and Priority.--The Secretary shall award grants 
under this section to States based on the quality of the applications 
submitted under subsection (c). In awarding grants under this section, 
the Secretary shall give priority to applications from States--
            ``(1) that do not have, as of the time of the application, 
        statewide policies or statewide initiatives in place to 
        retroactively award associate's degrees to students; or
            ``(2) that have a commitment to initiatives regarding the 
        retroactive awarding of associate's degrees that will continue 
        after the period of the grant.
    ``(e) Mandatory Use of Funds.--
            ``(1) Subgrants.--A State that receives a grant under this 
        section shall use not less than 80 percent of the grant funds 
        provided to award subgrants, on a competitive basis, to 
        institutions of higher education or systems of higher 
        education. Each institution or system receiving a subgrant 
        shall carry out all of the following activities and services, 
        pursuant to the conditions under subsection (g):
                    ``(A) Identify the group of current and former 
                students at the institution of higher education or 
                system of higher education that, based on the data held 
                by the institution, meet both of the following 
                requirements:
                            ``(i) Each individual has earned not less 
                        than 60 postsecondary credit hours (or the 
                        minimum required by the State to earn an 
                        associate's degree) at the institution of 
                        higher education or at an institution within 
                        the system of higher education.
                            ``(ii) Each individual has not had any 
                        postsecondary degree, of any kind, issued to 
                        the student by the institution of higher 
                        education.
                    ``(B) Identify a subset of the current and former 
                students described in subparagraph (A) who have not 
                already earned an associate's or baccalaureate degree 
                elsewhere.
                    ``(C) Perform a degree audit on each student in the 
                subset described in subparagraph (B), and identify each 
                such student as one of the following:
                            ``(i) Eligible to obtain an associate's 
                        degree.
                            ``(ii) Eligible to obtain an associate's 
                        degree upon the completion of 12 or fewer 
                        postsecondary credit hours (or the equivalent).
                            ``(iii) Not eligible under either clause 
                        (i) or (ii).
                    ``(D) Provide outreach to each student identified 
                in subparagraph (C)(i), and award the earned 
                associate's degree to such student, unless such student 
                declines through a written or oral declaration.
                    ``(E) Provide outreach to each student identified 
                in subparagraph (C)(ii) that includes information 
                regarding next steps toward degree attainment, 
                including financial aid options.
            ``(2) Application process.--An institution of higher 
        education or a system of higher education desiring a subgrant 
        under this subsection shall submit an application to the State 
        at such time, in such manner, and containing such information 
        as the State may require. Such application shall include a 
        written commitment from the institution or system of higher 
        education that, upon receipt of a grant, the institution or 
        system of higher education will carry out all of the activities 
        described in paragraph (1).
            ``(3) Priority.--Each State awarding subgrants under this 
        part shall give priority to applications from institutions of 
        higher education or systems of higher education that--
                    ``(A) use an opt-out, rather than an opt-in, policy 
                to award associate's degrees, if such policy is 
                permissible under applicable accreditation or State 
                standards;
                    ``(B) waive nonacademic barriers to graduation, 
                such as swimming tests, library fines, graduation fees, 
                or parking tickets;
                    ``(C) waive or amend residency and recency 
                requirements to prevent earned credits from expiring, 
                if such action is permissible under accreditation or 
                State standards; and
                    ``(D) commit to, following the conclusion of the 
                activities described in paragraph (1) and continuing 
                after the end of the grant period--
                            ``(i) conducting degree audits for each 
                        enrolled student once the student earns 45 
                        credits; and
                            ``(ii) provide information about graduation 
                        deadlines to remind students of relevant 
                        requirements at least 4 months before the 
                        students graduate and again 1 month before 
                        graduation.
    ``(f) Permissive Use of Funds.--A State receiving a grant under 
this section may use--
            ``(1) not more than 15 percent of the total amount received 
        under this section for administrative purposes relating to the 
        grant under this section, including technology needed to carry 
        out the purposes of this part; and
            ``(2) not more than 5 percent of the total amount received 
        under this section to create strong articulation agreements 
        between 2-year and 4-year institutions of higher education, in 
        order to enhance collaboration and strengthen the transition 
        pathways between such institutions for transfer students.
    ``(g) Special Conditions and Prohibitions.--
            ``(1) Availability to students.--A State, institution of 
        higher education, or system of higher education receiving a 
        grant or subgrant, as the case may be, under this section shall 
        not charge any student an additional fee or charge to 
        participate in the activities or services supported under this 
        section.
            ``(2) Prohibited uses.--A State, institution of higher 
        education, or system of higher education receiving a grant or 
        subgrant, as the case may be, under this section shall not use 
        any grant or subgrant funds for tuition, fees, room and board, 
        or any other purpose outside the goals of the grant.
            ``(3) FERPA requirements.--Each State, institution of 
        higher education, or system of higher education receiving a 
        grant or subgrant, as the case may be, under this section that 
        enters into a contract or other agreement with any outside 
        entity to assist in carrying out the activities or services 
        under such grant or subgrant, shall ensure that the outside 
        entity complies with all requirements of section 444 of the 
        General Education Provisions Act (commonly referred to as the 
        `Family Educational Rights and Privacy Act of 1974') that would 
        apply to the State, institution, or system.
            ``(4) Coordination.--A State receiving a grant under this 
        section shall ensure the coordination of the activities and 
        services carried out under this section with any other 
        activities carried out in the State that are similar to the 
        goals of this program, and with any other entities that support 
        the existing activities in the State, with the goal of 
        minimizing duplication.
    ``(h) Report.--
            ``(1) In general.--A State receiving a grant under this 
        section shall prepare and submit an annual report to the 
        Secretary on the activities and services carried out under this 
        section, and on the implementation of such activities and 
        services. The report shall include, for each institution of 
        higher education or system of higher education receiving a 
        subgrant, the following information:
                    ``(A) The number of students who were first 
                identified in the group described in subsection 
                (e)(1)(A).
                    ``(B) The number of students who were removed from 
                such group because the students had received a degree 
                elsewhere, in accordance with subsection (e)(1)(B).
                    ``(C) The number of degree audits performed under 
                subsection (e)(1)(C).
                    ``(D) The number of students identified under 
                subsection (e)(1)(C)(i) as eligible to obtain an 
                associate's degree.
                    ``(E) The number of students identified under 
                subsection (e)(1)(C)(ii) as eligible to obtain an 
                associate's degree upon the completion of 12 or fewer 
                postsecondary credit hours (or the equivalent).
                    ``(F) The number of students identified under 
                subsection (e)(1)(C)(iii) as ineligible to obtain an 
                associate's degree and ineligible to obtain such a 
                degree upon the completion of 12 or fewer postsecondary 
                credit hours (or the equivalent).
                    ``(G) The number of students awarded an associate's 
                degree under subsection (e)(1)(D).
                    ``(H) The number of students identified in 
                subsection (e)(1)(C)(ii) who are returning to an 
                institution of higher education after receiving 
                outreach described in subsection (e)(1)(E).
                    ``(I) The average amount of credit hours previously 
                earned by students described in subsection (e)(1)(C)(i) 
                when the associate's degrees are awarded.
                    ``(J) The number of students who received outreach 
                described in subsection (e)(1)(D) and who decline to 
                receive the associate's degree.
                    ``(K) The number of students who could not be 
                located or reached as part of the process.
                    ``(L) The reasons why students identified in 
                subsection (e)(1)(C)(ii) did not return to an 
                institution of higher education to receive a degree.
                    ``(M) Details of any policy changes implemented as 
                a result of implementing the activities and services 
                and conducting the required degree audits.
            ``(2) Disaggregation.--The report shall include the 
        information described in subparagraphs (A) through (L) of 
        paragraph (1) in the aggregate and disaggregated by age, 
        gender, race or ethnicity, status as an individual with a 
        disability, and socioeconomic status (including status as a 
        Federal Pell Grant recipient).
    ``(i) Enforcement Provisions.--
            ``(1) Recovery or withholding.--The Secretary may, after 
        notice and an opportunity for a hearing in accordance with 
        chapter 5 of title 5, United States Code--
                    ``(A) withhold funds provided under a grant or 
                subgrant under this section if a State system of higher 
                education or an institution of higher education is 
                failing to comply substantially with the requirements 
                of this section; or
                    ``(B) take actions to recover funds provided under 
                a grant or subgrant under this section, if the State 
                system of higher education or an institution of higher 
                education made an unallowable expense, or otherwise 
                failed to discharge its responsibility to properly 
                account for funds.
            ``(2) Use of recovered or unused funds.--Any funds 
        recovered or withheld under paragraph (1) shall--
                    ``(A) be credited to the appropriations account 
                from which amounts are available to make grants or 
                enter cooperative agreements under this section; and
                    ``(B) remain available until expended for any 
                purpose of that account authorized by law that relates 
                to the program under this section.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 2 succeeding fiscal years.''.

SEC. 707. AUTHORIZATION OF APPROPRIATIONS FOR DEMONSTRATION PROJECTS TO 
              SUPPORT POSTSECONDARY FACULTY, STAFF, AND ADMINISTRATORS 
              IN EDUCATING STUDENTS WITH DISABILITIES.

    Section 765 (20 U.S.C. 1140e) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 708. AUTHORIZATION OF APPROPRIATIONS FOR TRANSITION PROGRAMS FOR 
              STUDENTS WITH INTELLECTUAL DISABILITIES.

    Section 769 (20 U.S.C. 1140i) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 709. AUTHORIZATION OF APPROPRIATIONS FOR THE COMMISSION ON 
              ACCESSIBLE MATERIALS AND PROGRAMS TO SUPPORT IMPROVED 
              ACCESS TO MATERIALS.

    Section 775 (20 U.S.C. 1140o) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 710. AUTHORIZATION OF APPROPRIATIONS FOR THE NATIONAL TECHNICAL 
              ASSISTANCE CENTER; COORDINATING CENTER.

    Section 778 (20 U.S.C. 1140r) is amended by striking ``2009'' and 
inserting ``2015''.

SEC. 711. FIRST IN THE WORLD COMPETITIVE GRANT PROGRAM.

    Title VII (20 U.S.C. 1133 et seq.) is amended by adding at the end 
the following:

         ``PART F--FIRST IN THE WORLD COMPETITIVE GRANT PROGRAM

``SEC. 783. PURPOSE.

    ``The purpose of this part is--
            ``(1) to help institutions of higher education implement 
        innovative strategies and practices shown to be effective in 
        improving educational outcomes and making postsecondary 
        education more affordable for students and families;
            ``(2) to raise the percentage of individuals in the United 
        States who have a degree from an institution of higher 
        education or another postsecondary credential by 2020; and
            ``(3) to develop an evidence base of effective practices 
        for ensuring that more students can access, persist in, and 
        complete postsecondary education.

``SEC. 784. PROGRAM AUTHORIZED.

    ``(a) Eligible Entity Defined.--In this part `eligible entity' 
means--
            ``(1) a nonprofit institution of higher education;
            ``(2) a consortium of nonprofit institutions of higher 
        education; or
            ``(3) a nonprofit institution described in paragraph (1), 
        or a consortium described in paragraph (2), in partnership with 
        1 or more public or private organizations.
    ``(b) Program Authorized.--From amounts appropriated under section 
791, the Secretary shall award grants, on a competitive basis and in 
accordance with subsection (d), to eligible entities to enable such 
eligible entities to support the activities described in section 786.
    ``(c) Duration of Grants.--Grants awarded under this part shall be 
for a period of not more than 5 years.
    ``(d) Limitation.--An eligible entity shall not be awarded more 
than 1 grant for each grant competition.

``SEC. 785. APPLICATION; STANDARDS OF EVIDENCE; PRIORITY.

    ``(a) Application.--Each eligible entity that desires to receive a 
grant under this part shall submit an application to the Secretary at 
such time, in such manner, and containing such information as the 
Secretary may reasonably require, including, at a minimum--
            ``(1) a description of--
                    ``(A) the project for which the eligible entity is 
                seeking a grant and how the evidence supporting that 
                project meets the standards of evidence established by 
                the Secretary under subsection (b);
                    ``(B) the student population to be served and how 
                the proposed project will meet the needs of those 
                students;
                    ``(C) the resources and capacity of the eligible 
                entity to carry out the proposed project;
                    ``(D) the replicable and scalable reform strategies 
                the eligible entity will implement;
                    ``(E) the eligible entity's plan for continuing the 
                proposed project after the eligible entity no longer 
                receives funding under this part;
                    ``(F) the eligible entity's plans for independently 
                evaluating the effectiveness of activities carried out 
                under the grant, including evaluating whether the 
                strategies that the eligible entity implements are 
                showing evidence of effectiveness; and
                    ``(G) the eligible entity's data collection plan;
            ``(2) an estimate of the number of students that the 
        eligible entity plans to serve under the proposed project, 
        including the percentage of those students who are from low-
        income families;
            ``(3) an assurance that the eligible entity will--
                    ``(A) cooperate with evaluations, as requested by 
                the Secretary; and
                    ``(B) make data available to third parties for 
                validation and further study; and
            ``(4) if applicable, a description of the partnership the 
        eligible entity has established with 1 or more public or 
        private organizations for the purpose of carrying out 
        activities under the grant.
    ``(b) Standards of Evidence.--
            ``(1) In general.--The Secretary shall establish standards 
        for the quality of evidence that an applicant shall provide in 
        accordance with subsection (a)(1)(A) in order to demonstrate 
        that the project the applicant proposes to carry out with the 
        funds under this part is likely to succeed in improving student 
        outcomes according to the performance measures described in 
        section 787. These standards shall include the following:
                    ``(A) Strong evidence that the activities proposed 
                by the applicant will have a statistically significant 
                effect on student outcomes, including postsecondary 
                enrollment rates, postsecondary persistence rates, and 
                postsecondary completion rates.
                    ``(B) Moderate evidence that the activities 
                proposed by the applicant will improve such student 
                outcomes.
                    ``(C) A rationale based on research findings or a 
                reasonable hypothesis that the activities proposed by 
                the applicant will improve such student outcomes.
            ``(2) Support for new standards.--Subject to paragraph (3), 
        the Secretary shall ensure that not less than one-half of the 
        funds awarded under this part are awarded for projects that--
                    ``(A) meet a standard of evidence described in 
                subparagraph (B) or (C) of paragraph (1); and
                    ``(B) do not meet the evidence standard described 
                in subparagraph (A) of such paragraph.
            ``(3) Exception.--The Secretary shall not be required to 
        meet the requirement described in paragraph (2) unless a 
        sufficient number of otherwise high quality applications are 
        received.
    ``(c) Priority.--In awarding grants under this part, the Secretary 
shall give priority to applicants that plan to--
            ``(1) implement interventions that result in measurable 
        increases in the number of low-income students who--
                    ``(A) enroll and persist in postsecondary 
                education; and
                    ``(B) complete a postsecondary degree or 
                certificate;
            ``(2) implement a systemwide design that would have 
        positive effects on low-income students;
            ``(3) increase successful transfers of low-income students 
        into higher level programs, such as from a certificate program 
        to an associate's degree program or from an associate's degree 
        program to a bachelor's degree program;
            ``(4) increase enrollment and completion rates for degrees 
        or certificates in the fields of science, technology, 
        engineering, and mathematics for students from groups that are 
        historically underrepresented in those fields, including 
        minorities and women, by implementing new and substantially 
        different strategies;
            ``(5) design and implement new and innovative approaches to 
        reduce the time it takes for students to complete a program of 
        study and earn a postsecondary degree or certificate;
            ``(6) design and implement new and innovative strategies to 
        contain the cost of education for students and families 
        pursuing higher education; and
            ``(7) develop cross-system partnerships among workforce, 
        adult education, career and technical education, postsecondary 
        education, human service agencies, and others.

``SEC. 786. USES OF FUNDS.

    ``Each eligible entity that receives funds under this part shall 
use such funds to carry out 1 or more of the following activities:
            ``(1) Designing innovative approaches to teaching and 
        learning that are designed to produce better outcomes for 
        postsecondary students.
            ``(2) Implementing promising practices that accelerate the 
        pace and success rate at which students who need remedial 
        coursework move into credit-bearing coursework and toward a 
        degree or certificate.
            ``(3) Establishing open postsecondary degree pathways 
        that--
                    ``(A) are offered to students at low cost or no 
                cost;
                    ``(B) are offered in fields that focus on the 
                education and skills employers are seeking; and
                    ``(C) have the potential to deliver high quality 
                learning experiences and outcomes.
            ``(4) Redesigning courses and programs of study that 
        improve student learning at lower costs than traditional 
        courses.
            ``(5) Developing innovative student services approaches 
        that address financial barriers to college completion, such as 
        access to comprehensive financial supports (including tax 
        credits and Federal, State, and local benefits programs), 
        financial literacy, workforce development, and legal services.
            ``(6) Any other innovative program or strategy approved by 
        the Secretary.

``SEC. 787. PERFORMANCE MEASURES.

    ``(a) Establishment of Performance Measures.--The Secretary shall 
establish performance measures for the programs and activities carried 
out under this part. These measures, at a minimum, shall track the 
grantee's progress in improving postsecondary education access, 
affordability, and completion--
            ``(1) for all students served by the grantee; and
            ``(2) for students served by the grantee, disaggregated on 
        the basis of race and ethnicity, gender, and status as a 
        recipient of a Federal Pell Grant.
    ``(b) Performance Measures Included.--The performance measures 
described in subsection (a) shall include the following:
            ``(1) Postsecondary enrollment rates.
            ``(2) Persistence from semester to semester and year to 
        year.
            ``(3) On-time graduation rates.
            ``(4) Any other indicator determined by the Secretary or 
        grantee.

``SEC. 788. REPORTING REQUIREMENT.

    ``Each eligible entity that receives a grant under this part shall 
submit to the Secretary, at such time and in such manner as the 
Secretary may require, an annual report that includes--
            ``(1) information about the eligible entity's progress as 
        measured by the performance measures established under section 
        787;
            ``(2) data relating to such performance measures;
            ``(3) the evaluation required in accordance with section 
        785(a)(1)(F); and
            ``(4) any additional information that the Secretary may 
        require.

``SEC. 789. EVALUATION.

    ``The Secretary shall--
            ``(1) acting through the Director of the Institute of 
        Education Sciences, evaluate the implementation and impact of 
        activities supported under this part; and
            ``(2) disseminate research on best practices relating to 
        those activities.

``SEC. 790. SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available under this part shall be used to supplement, 
and not supplant, other Federal, State, and local funds that would 
otherwise be expended to carry out activities under this section.

``SEC. 791. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2015 and each of the 4 
succeeding fiscal years.''.

SEC. 712. DUAL ENROLLMENT AND EARLY COLLEGE HIGH SCHOOL PROGRAMS.

    Title VII (20 U.S.C. 1134 et seq.), as amended by section 711, is 
further amended by adding at the end the following:

    ``PART G--DUAL ENROLLMENT AND EARLY COLLEGE HIGH SCHOOL PROGRAMS

``SEC. 793. DUAL ENROLLMENT PROGRAMS AND EARLY COLLEGE HIGH SCHOOL 
              PROGRAMS.

    ``(a) Purpose.--The purpose of this section is to help expand 
access to, and improve the quality of, dual enrollment programs and 
early college high school programs.
    ``(b) Definitions.--In this section:
            ``(1) Applied learning.--The term `applied learning' means 
        a strategy that--
                    ``(A) engages students in opportunities to apply 
                rigorous academic content aligned with postsecondary-
                level expectations to real world experience, through 
                such means as work experience, work-based learning, 
                problem-based learning, or service-learning; and
                    ``(B) develops students' cognitive competencies and 
                pertinent employability skills.
            ``(2) Dual enrollment program.--The term `dual enrollment 
        program' means a program of study provided by an institution of 
        higher education through which a student who has not graduated 
        from secondary school with a regular high school diploma is 
        able to earn secondary school credit and transferable 
        postsecondary credit that is accepted as credit towards a 
        postsecondary degree or certificate at no cost to the 
        participant or the participant's family. A dual enrollment 
        program shall consist of not less than 2 postsecondary credit-
        bearing courses and support and academic services that help a 
        student persist and complete such courses.
            ``(3) Early college high school program.--The term `early 
        college high school program' means a formal partnership between 
        at least 1 local educational agency and at least 1 institution 
        of higher education that allows students to simultaneously 
        complete, as part of an organized course of study, requirements 
        towards earning a regular high school diploma and earning not 
        less than 12 transferable postsecondary credits that are 
        accepted as credit towards a postsecondary degree or 
        certificate at no cost to the participant or the participant's 
        family.
            ``(4) Eligible entity.--The term `eligible entity' means a 
        partnership that--
                    ``(A) shall include--
                            ``(i) a high-need local educational agency 
                        or a high-need high school; and
                            ``(ii) an institution of higher education 
                        operating in the same State as the high-need 
                        local educational agency or high-need school; 
                        and
                    ``(B) may include--
                            ``(i) a consortium of entities described in 
                        clauses (i) and (ii) of subparagraph (A); and
                            ``(ii) a nonprofit or community-based 
                        organization with demonstrated expertise in 
                        serving low-income students and traditionally 
                        underrepresented students.
            ``(5) Foster care youth.--The term `foster care youth' 
        means--
                    ``(A) youth whose care and placement is the 
                responsibility of the State or Tribal agency that 
                administers a State plan under part B or E of title IV 
                of the Social Security Act (42 U.S.C. 621 et seq. and 
                670 et seq.), without regard to whether foster care 
                maintenance payments are made under section 472 of such 
                Act (42 U.S.C. 672) on behalf of the child; and
                    ``(B) includes individuals whose care and placement 
                was the responsibility of the State or Tribal agency 
                that administers a State plan under part B or E of 
                title IV of the Social Security Act (42 U.S.C. 621 et 
                seq. and 670 et seq.) when they were age 13 or older 
                but who are no longer the under the care of the State 
                or Tribal agency.
            ``(6) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A) that serves not fewer than 10,000 children 
                from families with incomes below the poverty line;
                    ``(B) for which not less than 20 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line; or
                    ``(C) that is in the highest quartile of local 
                educational agencies in the State, based on student 
                poverty.
            ``(7) High-need high school.--The term `high-need high 
        school' means a secondary school that serves students not less 
        than 50 percent of whom are either low-income students or 
        traditionally underrepresented students.
            ``(8) High school graduation rate.--The term `high school 
        graduation rate' means the term `four-year adjusted cohort 
        graduation rate' in section 200.19(b)(1)(i)(A) of title 34, 
        Code of Federal Regulations, as such section was in effect on 
        November 28, 2008, and the `extended-year adjusted cohort 
        graduation rate' as defined in section 200.19(b)(1)(v)(A) of 
        title 34, Code of Federal Regulations, as such section was in 
        effect on November 28, 2008.
            ``(9) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101.
            ``(10) Low-income student.--The term `low-income student' 
        means a student who--
                    ``(A) is eligible for a free or reduced priced 
                lunch under the Richard B. Russell National School 
                Lunch Act;
                    ``(B) is eligible for, or is a member of a family 
                eligible for, means tested benefits or public 
                assistance at the Federal, State, or local level; or
                    ``(C) lives in a high-poverty area or attends a 
                secondary school that serves students in a high-poverty 
                area.
            ``(11) Personalized graduation and college plan.--The term 
        `personalized graduation and college plan' means a personalized 
        document that is developed in collaboration with a student, the 
        student's family, and school personnel, is updated at least 
        annually, is informed by labor market information, and does the 
        following:
                    ``(A) Sets postsecondary education and career 
                goals.
                    ``(B) Develops a course-taking schedule to meet 
                graduation requirements.
                    ``(C) As appropriate, outlines academic and non-
                academic supports that are needed to successfully 
                achieve goals and graduate college and career ready.
                    ``(D) Allows the student and family to track 
                progress toward goals and graduation requirements.
            ``(12) Regular high school diploma.--The term `regular high 
        school diploma' means the standard secondary school diploma 
        that is awarded to students in the State and that is fully 
        aligned with the State's academic content standards or a higher 
        diploma and does not include an alternative credential, 
        certificate of attendance, or any alternative award.
            ``(13) Traditionally underrepresented student.--The term 
        `traditionally underrepresented student' means a student who--
                    ``(A)(i) is a low-income student; and
                    ``(ii)(I) is a first generation college student, as 
                defined in section 402A(h);
                    ``(II) has a dependent;
                    ``(III) is employed for not less than 25 hours a 
                week; or
                    ``(IV) left secondary school without a regular high 
                school diploma or its equivalent;
                    ``(B) is or has been a homeless child or youth, as 
                defined in section 725 of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11434a);
                    ``(C) is a foster care youth;
                    ``(D) is an individual with a disability, as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990 (42 U.S.C. 12102);
                    ``(E) is a child with a disability, as defined in 
                section 602 of the Individuals with Disabilities 
                Education Act; or
                    ``(F) has been adjudicated in the juvenile or 
                criminal justice system.
    ``(c) Program Authorized.--
            ``(1) In general.--The Secretary shall make grants, from 
        allotments determined under paragraph (3), to States to enable 
        the States to award subgrants to eligible entities to support 
        dual enrollment programs and early college high school 
        programs.
            ``(2) Reservations.--
                    ``(A) Technical assistance.--The Secretary shall 
                reserve not more than 5 percent of the total amount 
                appropriated to carry out this section for each fiscal 
                year to provide technical assistance to States and 
                eligible entities awarded grants and subgrants under 
                this section and to evaluate the grant program 
                established under this section.
                    ``(B) BIE and outlying areas.--The Secretary shall 
                reserve 1 percent of the total amount appropriated to 
                carry out this section for each fiscal year for the 
                Secretary of the Interior for programs under this 
                section in schools operated or funded by the Bureau of 
                Indian Education and for outlying areas (as defined 
                under the Elementary and Secondary Education Act of 
                1965).
                    ``(C) Limitation.--Funds allotted for the 
                Commonwealth of Puerto Rico shall not exceed 0.5 
                percent of the total amount available to States to 
                carry out this section.
            ``(3) Determination of allotment.--From the total amount 
        appropriated to carry out this section for a fiscal year and 
        not reserved under paragraph (2) and except as provided in 
        paragraph (4), the Secretary shall allot to each State the sum 
        of--
                    ``(A) an amount that bears the same relationship to 
                65 percent of such total amount minus the reserved 
                amount as the number of low-income students in grades 9 
                through 12 in the State, as determined by the Secretary 
                on the basis of the most recent satisfactory data, 
                bears to the number of such students in all States, as 
                so determined; and
                    ``(B) an amount that bears the same relationship to 
                35 percent of such total amount minus the reserved 
                amount as the number of students in grades 9 through 12 
                in the State, as determined by the Secretary on the 
                basis of the most recent satisfactory data, bears to 
                the number of such students in all States, as so 
                determined.
            ``(4) Minimum allotment.--The allotment for each State 
        under paragraph (3) for a fiscal year shall be an amount that 
        is not less than 0.5 percent of the total amount available to 
        States for such fiscal year to carry out this section.
            ``(5) Subgrant duration.--A subgrant awarded under this 
        section shall be for a 5-year period.
    ``(d) Applications.--
            ``(1) In general.--A State that desires to receive a grant 
        under this section shall submit an application to the Secretary 
        at such time, in such manner, and accompanied by such 
        information as the Secretary may require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall include the following:
                    ``(A) A description of a comprehensive statewide 
                plan for improving access to dual enrollment programs 
                and early college high school programs, improving the 
                completion rates and quality of such programs, and the 
                level of postsecondary credit earned by participants in 
                such programs among low-income students and 
                traditionally underrepresented students.
                    ``(B) A coherent strategy for using grant funds 
                provided under this section with other Federal, State, 
                and local funds to--
                            ``(i) increase access to dual enrollment 
                        programs and early college high school programs 
                        among low-income students and traditionally 
                        underrepresented students;
                            ``(ii) increase completion rates of dual 
                        enrollment programs and early college high 
                        school programs among low-income students and 
                        traditionally underrepresented students;
                            ``(iii) implement appropriate secondary and 
                        postsecondary supports for low-income students 
                        and traditionally underrepresented students; 
                        and
                            ``(iv) continuously improve the quality of 
                        such programs.
                    ``(C) Evidence of collaboration among the State, 
                the State educational agency, local educational 
                agencies in the State, teachers, institutions of higher 
                education in the State, workforce development partners, 
                and other stakeholders in developing and implementing 
                the plan under subparagraph (A).
                    ``(D) How the State and eligible entities receiving 
                subgrants under this section will recruit low-income 
                students and traditionally underrepresented students to 
                participate in dual enrollment programs and early 
                college high school programs funded under the grant.
                    ``(E) An assurance that the State and eligible 
                entities receiving subgrants under this section will 
                track and report the performance measures described in 
                subsection (g).
                    ``(F) Documentation of the record of the State, or 
                eligible entity, as applicable, in areas to be measured 
                by the performance measures under subsection (g).
                    ``(G) An assurance that the State has taken and 
                will take steps to eliminate statutory, regulatory, 
                procedural, or other barriers to facilitate the full 
                implementation of the State's plan under subparagraph 
                (A).
                    ``(H) A description of how the State and eligible 
                entities receiving subgrants under this section will 
                sustain the activities proposed after the grant period 
                ends.
                    ``(I) An assurance that the State will require each 
                eligible entity, on behalf of a dual enrollment program 
                or early college high school program that receives 
                funds under a grant awarded under this section, to 
                enter into an articulation agreement with other public 
                institutions of higher education that are located in 
                the State in which an institution of higher education 
                that is part of an eligible entity is located. Such 
                articulation agreements shall be developed in 
                consultation with educators at institutions of higher 
                education and secondary schools. Such articulation 
                agreement shall guarantee--
                            ``(i) that students who earn postsecondary 
                        credit as part of a dual enrollment program or 
                        early college high school program will be able 
                        to transfer those credits to--
                                    ``(I) any public institution of 
                                higher education in the State, and that 
                                such credits will count toward meeting 
                                specific degree or certificate 
                                requirements; and
                                    ``(II) any private nonprofit 
                                institution of higher education that 
                                chooses to participate in an 
                                articulation agreement;
                            ``(ii) that common course numbering is used 
                        to identify substantially similar courses;
                            ``(iii) that credits are recognized 
                        throughout the system of higher education in 
                        the State and count as credits earned for both 
                        a regular high school diploma and credit for a 
                        degree or certificate program at a public 
                        institution of higher education in the State 
                        and at any private nonprofit institution of 
                        higher education that chooses to participate; 
                        and
                            ``(iv) that if a student earns an 
                        associate's degree as part of a dual enrollment 
                        program or early college program, that 
                        associate's degree, awarded by the 
                        participating institution of higher education 
                        in the State, shall be fully acceptable in 
                        transfer and credited as the first 2 years of a 
                        related baccalaureate program at a public 
                        institution of higher education in such State.
                    ``(J) An assurance that the State will require all 
                public institutions of higher education in the State to 
                establish credit transfer policies and articulation 
                agreements with each other so that students can 
                seamlessly transfer among such institutions of higher 
                education and private nonprofit institutions of higher 
                education if such private nonprofit institutions of 
                higher education choose to participate.
                    ``(K) A formal commitment from the institutions of 
                higher education participating in the program that 
                students will not be required to pay tuition and fees, 
                room and board, or fees for books and materials for any 
                courses in dual enrollment programs or early college 
                high school programs.
                    ``(L) A plan to address the unique circumstances 
                facing rural students and students with transportation 
                barriers who wish to participate in dual enrollment 
                programs and early college high school programs, 
                including difficulties in providing such students with 
                the opportunity to participate at campuses of 
                institutions of higher education.
                    ``(M) An assurance that the State will develop a 
                plan to increase enrollment in, persistence through, 
                and completion of postsecondary education among low-
                income students and traditionally underrepresented 
                students throughout the State through the use of dual 
                enrollment programs and early college high school 
                programs.
                    ``(N) An assurance that the State has enacted 
                funding models that ensure that local educational 
                agencies and institutions of higher education that 
                participate in dual enrollment programs and early 
                college high school programs do not lose per-pupil or 
                full-time equivalent funding for participating 
                students.
            ``(3) Applications for subgrants.--An eligible entity that 
        desires to receive a subgrant under this section shall submit 
        to a State an application at such time, in such manner, and 
        accompanied by such information as the State may require, 
        including, at a minimum--
                    ``(A) a coherent strategy for using subgrant funds 
                provided under this section with other Federal, State, 
                and local funds to--
                            ``(i) increase access to dual enrollment 
                        programs and early college high school programs 
                        among low-income students and traditionally 
                        underrepresented students;
                            ``(ii) increase completion rates of dual 
                        enrollment programs and early college high 
                        school programs among low-income students and 
                        traditionally underrepresented students; and
                            ``(iii) continuously improve the quality of 
                        such programs;
                    ``(B) a description of how the eligible entity will 
                conduct an outreach strategy to ensure that secondary 
                school students, their families, young people who have 
                dropped out of school, low-income students, 
                traditionally underrepresented students, and community 
                members are aware of early college high school programs 
                and dual enrollment programs, which shall include 
                information on--
                            ``(i) deadlines for enrolling in the early 
                        college high school program or dual enrollment 
                        program for the following school year;
                            ``(ii) the courses that will be available 
                        to students;
                            ``(iii) the secondary school and 
                        postsecondary credit or credentials that can be 
                        earned from available courses;
                            ``(iv) as appropriate, the similarities and 
                        differences between early college high school 
                        programs and dual enrollment programs;
                            ``(v) after the first year of 
                        implementation, achievement outcomes (such as 
                        number of course credits earned) of students 
                        participating in the early college high school 
                        program or dual enrollment program; and
                            ``(vi) as soon as practicable as determined 
                        by the Secretary, outcomes on the performance 
                        measures described under subsection (g) of 
                        students participating in the early college 
                        high school program or dual enrollment program;
                    ``(C) a description of the ongoing feedback process 
                between the participating institutions of higher 
                education and the participating local educational 
                agencies, including--
                            ``(i) the provision of academic outcome 
                        data, including the disaggregation of such data 
                        by student subgroups described in section 
                        1111(b)(2)(C)(v)(II) of the Elementary and 
                        Secondary Education Act of 1965, from the 
                        institution to the local educational agency, on 
                        the remediation needs of incoming students; and
                            ``(ii) a description of how that 
                        information is used by the local educational 
                        agency to strengthen instruction and reduce the 
                        need for postsecondary remediation;
                    ``(D) an assurance that instructors teaching 
                postsecondary courses in dual enrollment programs and 
                early college high school programs meet the same 
                standards for faculty established at the participating 
                institutions of higher education;
                    ``(E) a description of the academic and social 
                support services that will be provided to participating 
                students, including academic counseling and guidance on 
                the financial aid process;
                    ``(F) an assurance that the eligible entity will 
                establish polices that--
                            ``(i) maximize, to the extent practicable 
                        and taking into account the geography of the 
                        region, the number of dual enrollment program 
                        and early college high school program students 
                        on the campuses of institutions of higher 
                        education and in classrooms with postsecondary 
                        students, and dual enrollment program and early 
                        college high school program courses taught by 
                        professors of the institutions of higher 
                        education; and
                            ``(ii) in any case where providing courses 
                        of the dual enrollment program or early college 
                        high school program on a campus of an 
                        institution of higher education is not 
                        practicable, ensure that each course of the 
                        dual enrollment program or early college high 
                        school program that is taught in secondary 
                        schools is--
                                    ``(I) developed in collaboration 
                                with an institution of higher 
                                education;
                                    ``(II) fully comparable with the 
                                courses offered on the campus of the 
                                institution of higher education;
                                    ``(III) augmented with campus 
                                experiences when reasonably achievable; 
                                and
                                    ``(IV) taught by a faculty member 
                                from the partner institution of higher 
                                education, where practicable, or, if 
                                not practicable, by an instructor who 
                                is selected, supervised, and evaluated 
                                by the institution of higher education; 
                                and
                    ``(G) an assurance that the eligible entity will 
                provide access to a dual enrollment program or early 
                college high school program to all students, including 
                low-income students and traditionally underrepresented 
                students in the area or school.
    ``(e) Uses of Funds.--
            ``(1) Required state uses of funds.--
                    ``(A) In general.--The State may reserve not more 
                than 5 percent of the total amount allotted to carry 
                out this section for each fiscal year to carry out the 
                requirements of clauses (ii) through (vi) of 
                subparagraph (B). The remaining amount shall be used to 
                award subgrants to eligible entities in the State.
                    ``(B) State uses of funds.--A State that receives a 
                grant under this section shall carry out the following:
                            ``(i) Award subgrants to eligible entities 
                        to enable the entities to support dual 
                        enrollment programs and early college high 
                        school programs.
                            ``(ii) Design and implement a statewide 
                        strategy for dual enrollment programs and early 
                        college high school programs for low-income 
                        students and traditionally underrepresented 
                        students in higher education to ensure such 
                        programs are offered free of charge to 
                        students.
                            ``(iii) Establish articulation agreements 
                        and credit transfer policies.
                            ``(iv) Develop common college success 
                        courses for low-income students and 
                        traditionally underrepresented students 
                        enrolled in dual enrollment programs and early 
                        college high school programs.
                            ``(v) Collect data for program improvement 
                        and reporting of performance measures as 
                        described in subsection (g).
                            ``(vi) Provide technical assistance to dual 
                        enrollment programs and early college high 
                        school programs, which may include providing 
                        such assistance through a nonprofit 
                        organization with expertise in such programs.
            ``(2) Required local uses of funds.--An eligible entity 
        that receives a subgrant under this section shall carry out the 
        following:
                    ``(A) Support dual enrollment programs and early 
                college high school programs in the schools served by 
                the high-need local educational agency.
                    ``(B) Develop a personalized graduation and college 
                plan for each student participating in a dual 
                enrollment program or early college high school program 
                funded by the subgrant.
                    ``(C) Enter into the articulation agreement 
                described in subsection (d)(2)(I).
                    ``(D) Carry out outreach programs to elementary 
                school students, secondary school students, low-income 
                students, traditionally underrepresented students, 
                youth who have dropped out of school, and their parents 
                and families to ensure awareness of dual enrollment 
                programs and early college high school programs and the 
                ability to earn college credit while in secondary 
                school and to reengage dropouts in school. Such 
                programs may be carried out in partnership with a 
                nonprofit or community-based organization.
                    ``(E) Provide academic and social support services 
                to students, including counseling activities, tutoring, 
                and postsecondary education readiness activities such 
                as assistance with the Federal financial aid 
                application process.
                    ``(F) Collect data for program improvement and 
                reporting of performance measures as described in 
                subsection (g).
                    ``(G) Implement applied learning opportunities.
                    ``(H) Develop coordinated activities between 
                institutions of higher education and local educational 
                agencies, including academic calendars, provision of 
                student services, and curriculum development.
                    ``(I) Pay for tuition and fees, transportation, and 
                fees for books and materials.
                    ``(J) Provide students with information about how 
                the credits they earn through participating in dual 
                enrollment programs and early college high school 
                programs will be transferred to an institution of 
                higher education.
            ``(3) Permissive uses of funds.--A State that receives a 
        grant under this section or an eligible entity that receives a 
        subgrant under this section may provide--
                    ``(A) professional development, including joint 
                professional development, for secondary and 
                postsecondary instructors of courses in a dual 
                enrollment program or early college high school 
                program; or
                    ``(B) extended learning time opportunities for 
                students participating in dual enrollment programs and 
                early college high school programs.
            ``(4) Priorities.--In awarding subgrants under this 
        subsection, a State--
                    ``(A) shall--
                            ``(i) give priority to eligible entities 
                        that include a high-need local educational 
                        agency that serves students not less than 60 
                        percent of whom are low-income students or 
                        traditionally underrepresented students; or
                            ``(ii) give priority to eligible entities 
                        that include a high-need high school that 
                        demonstrates sufficient support and academic 
                        services in place to help participating 
                        students persist and complete a dual enrollment 
                        program or early college high school program; 
                        and
                    ``(B) may give a priority to eligible entities 
                that--
                            ``(i) develop innovative strategies for 
                        expanding access to dual enrollment programs 
                        and early college high school programs for low-
                        income students and traditionally 
                        underrepresented students, and increasing the 
                        number of those students that complete such 
                        programs; and
                            ``(ii) demonstrate how the entity will 
                        sustain funding for dual enrollment programs or 
                        early college high school programs after the 
                        grant period ends.
    ``(f) Matching Requirements.--
            ``(1) State matching requirement.--A State receiving a 
        grant under this section shall provide, from non-Federal 
        sources, in cash or in-kind, an amount equal to 50 percent of 
        the grant funds awarded under this section.
            ``(2) Eligible entity matching requirement.--A State 
        receiving a grant under this section shall require each 
        eligible entity that receives a subgrant under this section to 
        provide, from non-Federal sources, in cash or in-kind, an 
        amount equal to not less than 25 percent of the amount of 
        subgrant funds awarded to that eligible entity.
    ``(g) Performance Measures.--
            ``(1) In general.--The Secretary shall, prior to awarding 
        grants under this section, establish performance measures for 
        the programs and activities carried out under grants and 
        subgrants awarded under this section. The Secretary shall 
        ensure that the performance measures are made available to 
        potential applicants prior to seeking applications for grants 
        under this section.
            ``(2) Monitoring progress.--The performance measures 
        established under paragraph (1), at a minimum, shall collect 
        data on the progress of grantees and subgrantees in improving 
        the outcomes described in paragraph (3) for all students 
        participating in dual enrollment programs or early college high 
        school programs funded with a grant or subgrant under this 
        section. This data shall be disaggregated according to the 
        categories described in section 1111(b)(2)(C)(v)(II) of the 
        Elementary and Secondary Education Act of 1965.
            ``(3) Outcomes.--The performance measures shall measure the 
        progress of grantees and subgrantees in achieving the following 
        outcomes:
                    ``(A) Increasing high school graduation rates.
                    ``(B) Increasing dropout recovery (re-entry) rates.
                    ``(C) Decreasing the percentage of students with 
                less than a 90 percent attendance rate.
                    ``(D) Increasing the percentage of students who 
                have on-time credit accumulation at the end of each 
                grade.
                    ``(E) Increasing annual, average attendance rates.
                    ``(F) Reducing the need for remediation in 
                postsecondary education.
                    ``(G) Increasing enrollment rates at institutions 
                of higher education.
                    ``(H) Increasing postsecondary education 
                persistence and completion rates.
                    ``(I) Increasing the rate at which students 
                complete postsecondary education.
                    ``(J) Measured increases in enrollment in dual 
                enrollment programs and early college high school 
                programs.
                    ``(K) Increasing the percentage of students who 
                successfully complete and earn a minimum of 12 credits 
                for rigorous postsecondary education courses while 
                attending a secondary school.
                    ``(L) Increasing the percentage of students who 
                earn postsecondary credit and successfully have such 
                credit accepted by an institution of higher education 
                toward a degree or certificate.
    ``(h) Reporting.--
            ``(1) State reports.--Each State that receives a grant 
        under this section shall submit to the Secretary, at such time 
        and in such manner as the Secretary may require, an annual 
        report that includes--
                    ``(A) information about the State's progress on the 
                performance measures established under subsection (g) 
                and the data supporting that progress; and
                    ``(B) information submitted to the State from the 
                eligible entities, as described in paragraph (2).
            ``(2) Eligible entity reports.--Each eligible entity that 
        receives a subgrant under this section shall submit to the 
        State, at such time and in such manner as the State may 
        require, an annual report that includes information about the 
        entity's progress on the performance measures established under 
        subsection (g) and the data supporting that progress, at such 
        time and in such manner as the State may require.
    ``(i) Evaluation.--The Secretary shall--
            ``(1) acting through the Director of the Institute of 
        Education Sciences, evaluate the implementation and impact of 
        activities supported under this section; and
            ``(2) disseminate research on best practices.
    ``(j) Supplement, Not Supplant.--A State or eligible entity shall 
use Federal funds received under this section only to supplement the 
funds that would, in the absence of such Federal funds, be made 
available from non-Federal sources for activities described in this 
section, and not to supplant such funds.
    ``(k) Authorization.--There are authorized to be appropriated to 
carry out this section such sums as may be necessary for each of fiscal 
years 2015 through 2019.''.

SEC. 713. MINORITY-SERVING INSTITUTIONS INNOVATION FUND.

    Title VII (20 U.S.C. 1134 et seq.), as amended by sections 711 and 
712, is further amended by adding at the end the following:

        ``PART H--MINORITY-SERVING INSTITUTIONS INNOVATION FUND

``SEC. 795. PURPOSE.

    ``It is the purpose of this part to assist minority-serving 
institutions in planning, developing, implementing, validating, and 
replicating innovations that provide solutions to persistent challenges 
in enabling economically and educationally disadvantaged students to 
enroll in, persist through, and graduate from minority-serving 
institutions, including initiatives designed to--
            ``(1) improve student achievement at minority-serving 
        institutions;
            ``(2) increase successful recruitment at minority-serving 
        institutions of--
                    ``(A) students from low-income families of all 
                races;
                    ``(B) adults; and
                    ``(C) military-affiliated students;
            ``(3) increase the rate at which students enrolled in 
        minority-serving institutions make adequate or accelerated 
        progress towards graduation and successfully graduate from such 
        institutions;
            ``(4) increase the number of students pursuing and 
        completing degrees in science, technology, engineering, and 
        mathematics at minority-serving institutions and pursuing 
        graduate work in such fields;
            ``(5) enhance the quality of teacher preparation programs 
        offered by minority-serving institutions;
            ``(6) redesign course offerings and institutional student 
        aid programs to help students obtain meaningful employment; and
            ``(7) expand the effective use of technology at minority-
        serving institutions.

``SEC. 795A. DEFINITIONS.

    ``In this part the term `eligible entity' means--
            ``(1) an institution that is eligible for the receipt of 
        funds under the programs authorized under title III or V of 
        this Act; or
            ``(2) a consortium that includes an institution described 
        in paragraph (1) and--
                    ``(A) one or more other institutions of higher 
                education;
                    ``(B) one or more nonprofit organizations; or
                    ``(C) one or more local educational agencies.

``SEC. 795B. GRANTS AUTHORIZED.

    ``(a) In General.--From funds made available for this part under 
section 795F, the Secretary shall award competitive planning and 
implementation grants, as described in subsections (b) and (c), to 
eligible entities to enable such entities to plan for the 
implementation of, in the case of a planning grant, and implement, in 
the case of an implementation grant, innovations authorized under this 
part and to support the implementation, validation, scaling up, and 
replication of such innovations.
    ``(b) Planning Grants.--
            ``(1) Duration.--A planning grant authorized under this 
        subsection shall be for a 1-year period.
            ``(2) Grant amounts.--Each planning grant authorized under 
        this subsection shall be an amount that is not more than 
        $100,000.
    ``(c) Implementation Grants.--
            ``(1) In general.--From funds made available for this part 
        under section 795F, the Secretary shall award implementation 
        grants to eligible entities to further develop, pilot, field-
        test, implement, document, validate, and, as applicable, scale 
        up and replicate innovations that address the purpose of this 
        part.
            ``(2) Duration.--An implementation grant authorized under 
        this subsection shall be for a 5-year period. Grant funding 
        after the first 3 years shall be conditional upon the eligible 
        entity achieving satisfactory progress towards carrying out the 
        educational innovations, activities, and projects described in 
        section 795E, as determined by the Secretary.
            ``(3) Grant amount.--Each implementation grant authorized 
        under this subsection shall be an amount that is not more than 
        $10,000,000.
    ``(d) Consortium Entities.--
            ``(1) Fiscal agent.--In the case of an eligible entity that 
        applies for a grant under this part as a consortium, each 
        member of the consortium comprising the eligible entity shall 
        sign a written agreement designating 1 member of the consortium 
        to serve as the fiscal agent of the eligible entity and act on 
        behalf of the eligible entity in performing the financial 
        duties of the eligible entity.
            ``(2) Subgrants.--The fiscal agent for an eligible entity 
        (as described in paragraph (1)) may award subgrants to another 
        member of the consortium that comprises that eligible entity.
    ``(e) Federal Share.--
            ``(1) Planning grants.--The Federal share of the total cost 
        of carrying out a project funded by a planning grant authorized 
        under subsection (b) shall be 100 percent of such total cost.
            ``(2) Implementation grants.--
                    ``(A) In general.--The Federal share of the total 
                cost of carrying out a project funded by an 
                implementation grant authorized under subsection (c) 
                shall be not more than 85 percent of such total cost.
                    ``(B) Remaining cost.--An eligible entity that 
                receives an implementation grant under subsection (c) 
                shall provide, from non-Federal sources, an amount 
                equal to not less than 15 percent of the total cost of 
                carrying out the project funded by the grant. Such 
                amount may be provided by in cash or in-kind.

``SEC. 795C. APPLICATIONS.

    ``(a) In General.--An eligible entity desiring a grant under this 
part shall submit an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may reasonably 
require.
    ``(b) Consortium Entities.--An application under this section for a 
planning grant or an implementation grant by an eligible entity 
applying for a grant under this part as a consortium shall include the 
written agreement described in section 795B(d).
    ``(c) Planning Grants.--The Secretary shall ensure that the 
application requirements under this section for a planning grant 
authorized under section 795B(b) include, in addition to the 
requirement under subsection (b), only the minimal requirements that 
are necessary to review the proposed process of an eligible entity for 
the planning and development of 1 or more educational innovations that 
address the purpose of this part as described in section 795.
    ``(d) Implementation Grants.--An application under this section for 
an implementation grant authorized under section 795B(c) shall include, 
in addition to the requirement under subsection (b), a description of--
            ``(1) each educational innovation that the eligible entity 
        will implement using the funds made available by such grant, 
        including a description of the evidence supporting the 
        effectiveness of each such innovation;
            ``(2) how each educational innovation proposed to be 
        implemented under such grant will address the purpose of this 
        part, as described in section 795, and how each such innovation 
        will further the institutional or organizational mission of the 
        eligible entity and any institution or organization that is a 
        member of a consortium comprising the eligible entity;
            ``(3) the specific activities that the eligible entity will 
        carry out with funds made available by such grant, including, 
        for a consortium application a description of the activities 
        that each member of the consortium will carry out and a 
        description of the capacity of each member of the consortium to 
        carry out such activities;
            ``(4) the performance measures that the eligible entity 
        will use to track the eligible entity's progress in 
        implementing each proposed educational innovation, including a 
        description of how the entity will implement such performance 
        measures and use information on performance to make adjustments 
        and improvements to activities, as needed, over the course of 
        the grant period;
            ``(5) how the eligible entity will provide the amount 
        required under section 795B(e)(2)(B);
            ``(6) how the eligible entity will provide for an 
        independent evaluation of the implementation and impact of the 
        projects funded by such grant that includes--
                    ``(A) an interim report evaluating the progress 
                made in the first 3 years of the grant; and
                    ``(B) a final report to be completed at the end of 
                the grant period; and
            ``(7) the plan of the eligible entity for continuing each 
        proposed educational innovation after the grant period has 
        ended.

``SEC. 795D. PRIORITY.

    ``In awarding grants under this part, the Secretary shall give 
priority--
            ``(1) first to applications from eligible entities that 
        include institutions--
                    ``(A) that serve a high percentage of students that 
                are eligible to receive a Federal Pell Grant; and
                    ``(B) that have endowment funds the market value of 
                which, per full-time equivalent student, is less than 
                the average current market value of the endowment 
                funds, per full-time equivalent student at other 
                applicant institutions;
            ``(2) next, to applications that seek to address issues of 
        major national need, including--
                    ``(A) educational innovations designed to increase 
                the rate of postsecondary degree attainment for 
                populations within minority groups that have low 
                relative rates of postsecondary degree attainment, 
                including African-American males who attain a 
                postsecondary degree;
                    ``(B) innovative partnerships between minority-
                serving institutions and local educational agencies 
                that are designed to increase the enrollment and 
                successful completion of postsecondary education for 
                populations that have been historically 
                underrepresented in higher education;
                    ``(C) educational innovations that bring together 
                the resources of minority-serving institutions and 
                partner institutions in support of economic 
                development, entrepreneurship, and the 
                commercialization of funded research and the 
                development of an innovation ecosystem on postsecondary 
                school campuses;
                    ``(D) educational innovations that support 
                developing programs and initiatives to support 
                undergraduate and graduate programs in science, 
                technology, engineering, and mathematics; and
                    ``(E) educational innovations described in 
                paragraphs (3) and (6) of section 795E(b).

``SEC. 795E. USE OF FUNDS.

    ``(a) Planning Grants.--An eligible entity receiving a planning 
grant authorized under section 795B(b) shall use funds made available 
by such grant to conduct a comprehensive institutional planning process 
that includes--
            ``(1) an assessment of the needs of the minority-serving 
        institution and, in the case of an eligible entity applying as 
        a consortium, the needs of each member of the consortium;
            ``(2) research on educational innovations, consistent with 
        the purpose of this part as described in section 795, to meet 
        the needs described in paragraph (1);
            ``(3) the selection of 1 or more educational innovations to 
        be implemented;
            ``(4) an assessment of the capacity of the minority-serving 
        institution and, in the case of an eligible entity applying as 
        a consortium, the capacity of each member of the consortium, to 
        implement each such educational innovation; and
            ``(5) activities to further develop such capacity.
    ``(b) Implementation Grants.--An eligible entity receiving an 
implementation grant under section 795B(c) shall use the funds made 
available by such grant to further develop, pilot, field-test, 
implement, document, validate, and, as applicable, scale up and 
replicate educational innovations that address the purpose of this 
part, as described in section 795, such as educational innovations 
designed to--
            ``(1) improve student achievement, such as through 
        activities designed to increase the number or percentage of 
        students who successfully complete developmental or remedial 
        coursework (which may be accomplished through the evidence-
        based redesign of such coursework) and pursue and succeed in 
        postsecondary studies;
            ``(2) improve and expand institutional recruitment, 
        postsecondary school awareness, and postsecondary school 
        preparation efforts targeting students, including high-
        achieving students, from low-income families, such as through 
        activities undertaken in partnership with local educational 
        agencies and nonprofit organizations (including the 
        introduction of dual enrollment programs and the implementation 
        of activities designed to enable more students to enter 
        postsecondary education without the need for remediation);
            ``(3) increase the number or percentage of students, 
        particularly students who are members of historically 
        underrepresented populations, who enroll in science, 
        technology, engineering, and mathematics courses, graduate with 
        degrees in such fields, and pursue advanced studies in such 
        fields;
            ``(4) increase (such as through the provision of 
        comprehensive academic and nonacademic student support 
        services) the number or percentage of students who make 
        satisfactory or accelerated progress toward graduation from 
        postsecondary school and the number or percentage of students 
        who graduate from postsecondary school on time;
            ``(5) implement evidence-based improvements to courses, 
        particularly high-enrollment courses, to improve student 
        outcomes and reduce education costs for students, including 
        costs of remedial courses;
            ``(6) enhance the quality of teacher preparation programs 
        at minority-serving institutions, to enable teachers at such 
        institutions to be highly effective in the classroom and to 
        enable such programs to meet the demands for accountability in 
        teacher education;
            ``(7) expand the effective use of technology in higher 
        education, such as through inter-institutional collaboration on 
        implementing competency-based technology-enabled delivery 
        models (including hybrid models) or through the use of open 
        educational resources and digital content; and
            ``(8) provide a continuum of solutions by incorporating 
        activities that address multiple objectives described in 
        paragraphs (1) through (7).

``SEC. 795F. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary for fiscal years 2015 through 2020 to carry out the 
activities under this part.''.

SEC. 714. STATE COMPETITIVE GRANT PROGRAM FOR REFORMS TO IMPROVE HIGHER 
              EDUCATION PERSISTENCE AND COMPLETION.

    Title VII (20 U.S.C. 1133 et seq.), as amended by sections 711, 
712, and 713, is further amended by adding at the end the following:

``PART I--STATE COMPETITIVE GRANT PROGRAM FOR REFORMS TO IMPROVE HIGHER 
                  EDUCATION PERSISTENCE AND COMPLETION

``SEC. 796. PURPOSE.

    ``The purpose of this part is to provide incentives for States to 
implement comprehensive reforms and innovative strategies that are 
designed to lead to--
            ``(1) significant improvements in postsecondary outcomes 
        for traditionally underrepresented students, including 
        improvements in postsecondary enrollment, persistence, and 
        completion by 2020;
            ``(2) reductions in the need for remedial education for 
        postsecondary students;
            ``(3) increased alignment between elementary and secondary 
        education, postsecondary education, and workforce systems; and
            ``(4) innovation in postsecondary education.

``SEC. 796A. DEFINITIONS.

    ``In this part:
            ``(1) Dual enrollment program.--The term `dual enrollment 
        program' means a program of study provided by an institution of 
        higher education through which a student who has not graduated 
        from secondary school with a regular high school diploma is 
        able to earn secondary school credit and transferable 
        postsecondary credit that is accepted as credit toward a 
        postsecondary degree or credential at no cost to the 
        participant or the participant's family. A dual enrollment 
        program shall consist of not less than 2 postsecondary credit-
        bearing courses and support and academic services that help a 
        student persist and complete such courses.
            ``(2) Early college high school program.--The term `early 
        college high school program' means a formal partnership between 
        at least 1 local educational agency and at least 1 institution 
        of higher education that allows students to simultaneously 
        complete, as part of an organized course of study, requirements 
        toward earning a regular high school diploma and earning not 
        less than 12 transferable postsecondary credits that are 
        accepted as credit toward a postsecondary degree or credential 
        at no cost to the participant or the participant's family.
            ``(3) Low income student.--The term `low income student' 
        means--
                    ``(A) with respect to an elementary school or 
                secondary school student, a student who--
                            ``(i) is eligible for a free or reduced 
                        priced lunch under the Richard B. Russell 
                        National School Lunch Act (42 U.S.C. 1751 et 
                        seq.);
                            ``(ii) is eligible for or is a member of a 
                        family eligible for means tested benefits or 
                        public assistance at the Federal, State, or 
                        local level; or
                            ``(iii) lives in a high-poverty area or 
                        attends a secondary school that serves students 
                        in a high-poverty area; or
                    ``(B) with respect to a postsecondary student, a 
                student who--
                            ``(i) is eligible for a Federal Pell Grant 
                        under section 401; or
                            ``(ii) is eligible for means-tested 
                        benefits or public assistance at the Federal, 
                        State, or local level.
            ``(4) Persist.--The term `persist' means to continue 
        enrollment in postsecondary education.
            ``(5) Traditionally underrepresented student.--The term 
        `traditionally underrepresented student' means a student who--
                    ``(A) is a low-income student and--
                            ``(i) is a first generation college 
                        student, as defined in section 402A(h);
                            ``(ii) has a dependent;
                            ``(iii) is employed for not less than 25 
                        hours a week;
                            ``(iv) has taken 2 or more developmental 
                        education courses; or
                            ``(v) left high school without a regular 
                        high school diploma or its equivalent;
                    ``(B) is or has been a homeless child or youth, as 
                defined in section 725 of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11434a);
                    ``(C) is a foster care youth;
                    ``(D) is an individual with a disability, as 
                defined in section 3 of the Americans with Disabilities 
                Act (42 U.S.C. 12102);
                    ``(E) is a child with a disability, as defined in 
                section 602 of the Individuals with Disabilities 
                Education Act; or
                    ``(F) has been adjudicated in the juvenile or 
                criminal justice system.

``SEC. 796B. STATE GRANT PROGRAM AUTHORIZED.

    ``(a) Reservation of Funds.--From amounts made available to carry 
out this part for a fiscal year, the Secretary may reserve not more 
than 2 percent to carry out activities in accordance with this part 
related to technical assistance, evaluation, outreach, and 
dissemination.
    ``(b) Program Authorized.--
            ``(1) In general.--From amounts made available to carry out 
        this part and not reserved under subsection (a), the Secretary 
        shall award planning or implementation grants under this part, 
        in such a manner as to achieve an equitable distribution of 
        grant funds throughout the United States, to States to enable 
        the States to plan or implement comprehensive reforms and 
        innovative strategies to improve postsecondary outcomes for all 
        students, especially low-income and traditionally 
        underrepresented students.
            ``(2) Planning and implementation grants.--As described in 
        paragraph (1), the Secretary shall award grants to States for 
        the purpose described in section 796 by--
                    ``(A) awarding planning grants, on a competitive 
                basis, to States to enable such States to develop the 
                comprehensive State plan described in section 796D to 
                increase postsecondary education enrollment, 
                persistence, and attainment by 2020; and
                    ``(B) awarding implementation grants, on a 
                competitive basis, to States to enable such States to 
                implement the comprehensive State plan described in 
                section 796D.
            ``(3) Limitations.--
                    ``(A) Limit on number of grants.--A State may 
                receive only 1 planning grant, and only 1 
                implementation grant, under this section.
                    ``(B) Limit on number of planning grants.--The 
                Secretary may elect to limit the number and amount of 
                planning grants awarded under this section during a 
                grant period, if the Secretary determines it would best 
                promote the purposes of this part.
            ``(4) Duration.--
                    ``(A) Planning grant.--Each planning grant awarded 
                under this part shall be for a period of not more than 
                24 months.
                    ``(B) Implementation grant.--Each implementation 
                grant awarded under this part shall be for a period of 
                not more than 5 years.
                    ``(C) Requirements for additional funding.--Before 
                receiving funding for an implementation grant for the 
                third or any subsequent year of the grant, the State 
                receiving the grant shall demonstrate to the Secretary 
                that the State is--
                            ``(i) making progress in implementing the 
                        State plan described under section 796D at a 
                        rate that the Secretary determines will result 
                        in full implementation of that plan during the 
                        remainder of the grant period; and
                            ``(ii) making progress, as measured by the 
                        annual performance measures and targets 
                        described in section 796D(b)(2), at a rate that 
                        the Secretary determines will result in 
                        reaching those targets and achieving the 
                        objectives of the grant, during the remainder 
                        of the grant period.

``SEC. 796C. APPLICATION PROCESS.

    ``(a) Planning Grants.--Each State that desires to receive a 
planning grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require. At a minimum, each such 
application shall include the following:
            ``(1) Documentation of the State's record, including 
        demonstrating a need for the grant funds to improve the State's 
        record, as applicable, in the areas to be measured by the 
        performance measures under section 796D(b)(2).
            ``(2) A coherent strategy for using funds under this part, 
        and other Federal, State, and local funds, to design a State 
        plan as described in section 796D.
            ``(3) Evidence that there will be collaboration among the 
        State, the State educational agency, institutions of higher 
        education located in the State, postsecondary students, 
        workforce partners, and other stakeholders, in developing and 
        implementing such plan, including evidence of the State's 
        commitment and capacity to implement such plan.
            ``(4) An assurance of the State's commitment to developing 
        the State plan.
            ``(5) An assurance of the State's commitment to meeting, 
        before the end of the planning grant period, any requirements 
        that the Secretary may establish.
    ``(b) Implementation Grants.--Each State that desires to receive an 
implementation grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require. At a minimum, each such 
application shall include the following:
            ``(1) Documentation of the State's record, including 
        demonstrating a need for the grant funds to improve the State's 
        record, as applicable, in the areas to be measured by the 
        performance measures under section 796D(b)(2).
            ``(2) A description of how the implementation grant funds 
        will be used to implement the comprehensive State plan 
        described in section 796D, which may be an existing (as of the 
        date of application) State plan that meets the requirements of 
        such section.
            ``(3) Evidence of conditions of innovation and reform that 
        the State has established and the State's plan for implementing 
        additional conditions for innovation and reform, including--
                    ``(A) a description of how the State has identified 
                and eliminated ineffective practices in the past, and a 
                plan for doing so in the future;
                    ``(B) a description of how the State has identified 
                and promoted effective practices in the past, and a 
                plan for doing so in the future; and
                    ``(C) steps the State has taken and will take to 
                eliminate statutory, regulatory, procedural, or other 
                barriers to facilitate the full implementation of the 
                State's proposed plan under section 796D.
            ``(4) The State's annual performance measures and targets, 
        established in accordance with the requirements of section 
        796D(b)(2).
            ``(5) A signed assurance from every public institution of 
        higher education in the State that the institution will carry 
        out any activities that the State determines may be necessary 
        to carry out the State plan under section 796D.
            ``(6) An assurance from the State that the State will 
        provide equitable resources and technical assistance to all 
        public institutions of higher education in the State to 
        implement the reforms described in this section.
    ``(c) Criteria for Evaluating Applications.--
            ``(1) In general.--The Secretary shall award grants under 
        this part on a competitive basis to a geographically diverse 
        group of States, based on the quality of the applications 
        submitted by the States.
            ``(2) Publication of explanation.--The Secretary shall 
        publish an explanation of how the application review process 
        will ensure an equitable, transparent, and objective evaluation 
        of applicants.
    ``(d) Priority.--In awarding grants under this part, the Secretary 
shall give priority to a State if--
            ``(1) the State has a significant percentage of low-income 
        students or traditionally underrepresented students residing 
        within the State;
            ``(2) the State has a strong record of investment in 
        postsecondary education; or
            ``(3) the State distributes State postsecondary education 
        aid on the basis of need.

``SEC. 796D. COMPREHENSIVE STATE PLAN.

    ``(a) Establishment of Plan.--Each State receiving a planning or 
implementation grant under this part shall establish or implement, 
respectively, a comprehensive State plan described in subsection (b) to 
increase student access, persistence, and completion in postsecondary 
education at--
            ``(1) public institutions of higher education throughout 
        the State; and
            ``(2) private nonprofit institutions of higher education 
        (as defined in section 101) that agree to participate in and 
        implement the State plan.
    ``(b) Comprehensive State Plan.--The comprehensive State plan 
described in subsection (a) shall contain the following:
            ``(1) A commitment to implement statewide reforms in the 
        following areas:
                    ``(A) Removing barriers to innovation in 
                postsecondary education by--
                            ``(i) shortening the length of time to a 
                        postsecondary degree;
                            ``(ii) promoting efficiencies on campuses 
                        that lead to lower net tuition prices for 
                        students;
                            ``(iii) promoting the use of technology to 
                        increase personalized learning, advising, and 
                        support services for students; and
                            ``(iv) developing innovative education 
                        delivery models, such as using technology to 
                        enhance online and classroom learning, in order 
                        to increase participation and retention of 
                        students, particularly low-income students and 
                        students who are in the first generation in 
                        their family to attend an institution of higher 
                        education.
                    ``(B) Improving the transition between elementary 
                and secondary education and postsecondary education and 
                the workforce by--
                            ``(i) reforming the process for identifying 
                        students for developmental education, offering 
                        developmental education examinations while 
                        students are in secondary school to identify 
                        knowledge and skills gaps, and reducing the 
                        need for developmental education by ensuring 
                        that developmental education courses are 
                        reserved for students who are substantially 
                        underprepared and placing better-prepared 
                        students in traditional courses;
                            ``(ii) redesigning and standardizing 
                        developmental education requirements and 
                        assessments among institutions of higher 
                        education;
                            ``(iii) reforming the content, timing, and 
                        delivery of developmental education to help 
                        academically underprepared students complete 
                        college through comprehensive approaches;
                            ``(iv) using technology, academic, and 
                        student supports that engage students, align 
                        developmental education to students' academic 
                        and career goals, and accelerate the students' 
                        progression through remediation and credit-
                        bearing coursework;
                            ``(v) increasing access to dual enrollment 
                        and early college high schools for low-income 
                        students; and
                            ``(vi) establishing clear and transparent 
                        policies regarding how completion of dual 
                        enrollment and early college high school 
                        programs will result in the transfer of 
                        credits--
                                    ``(I) to public institutions of 
                                higher education in the State; and
                                    ``(II) to private nonprofit 
                                institutions of higher education that 
                                choose to participate in such credit 
                                transfer policies.
                    ``(C) Increasing persistence in postsecondary 
                education by carrying out all of the following:
                            ``(i) Developing early warning systems to 
                        identify students at risk of dropping out of 
                        postsecondary education.
                            ``(ii) Providing highly effective and 
                        comprehensive academic and student support 
                        services at institutions of higher education.
                            ``(iii) Requiring all public institutions 
                        of higher education in the State to establish 
                        credit transfer policies and articulation 
                        agreements, that have been developed in 
                        consultation with educators in institutions of 
                        higher education, with each other so that 
                        students can seamlessly transfer among all 
                        public institutions of higher education in the 
                        State. Such articulation agreements shall 
                        guarantee--
                                    ``(I) that students who earn 
                                postsecondary credit at a public 
                                institution of higher education will be 
                                able to transfer those credits to--
                                            ``(aa) any public 
                                        institution of higher education 
                                        in the State, and that such 
                                        credits will count toward 
                                        meeting specific degree or 
                                        credential requirements; and
                                            ``(bb) any private 
                                        nonprofit institution of higher 
                                        education that chooses to 
                                        participate in an articulation 
                                        agreement;
                                    ``(II) that common course numbering 
                                is used to identify substantially 
                                similar courses;
                                    ``(III) that credits are recognized 
                                throughout the system of higher 
                                education in the State and count as 
                                credits earned for a degree or 
                                credential program at a public 
                                institution of higher education in the 
                                State and at any private nonprofit 
                                institution of higher education that 
                                chooses to participate, consistent with 
                                clause (I)(bb); and
                                    ``(IV) that if a student earns an 
                                associate's degree, that associate's 
                                degree, awarded by the participating 
                                institution of higher education in the 
                                State, shall be fully acceptable in 
                                transfer and credited as the first 2 
                                years of a related baccalaureate 
                                program at a public institution of 
                                higher education in such State.
                            ``(iv) Including private nonprofit 
                        institutions of higher education that choose to 
                        participate in the credit transfer policies and 
                        articulation agreements described in clause 
                        (iii).
                            ``(v) Providing students residing in the 
                        State with free degree audits.
                            ``(vi) Providing students with an assurance 
                        that if a student receives an associate's 
                        degree from a public institution of higher 
                        education in the State, that associate's degree 
                        will translate into upper level status at a 
                        receiving public institution of higher 
                        education.
                    ``(D) Increasing transparency of information to 
                students and their families by--
                            ``(i) providing financial literacy 
                        information to students and families, including 
                        information regarding the benefits of 
                        postsecondary education, planning for 
                        postsecondary education, postsecondary 
                        education opportunities, and career planning;
                            ``(ii) providing information on financing 
                        options for postsecondary education and 
                        activities that promote financial literacy and 
                        debt management among students and families, 
                        including assistance in completion of the Free 
                        Application for Federal Student Aid or other 
                        common financial reporting form under section 
                        483(a);
                            ``(iii) reporting workforce outcomes for 
                        postsecondary graduates;
                            ``(iv) developing multi-year tuition and 
                        fee schedules;
                            ``(v) improving postsecondary data systems 
                        and linking those systems to existing State 
                        data systems for elementary and secondary 
                        education and the workforce; and
                            ``(vi) developing practices for the 
                        continuous assessment of student learning and 
                        for public reporting of non-personally 
                        identifiable student learning outcomes.
                    ``(E) Increasing and improving the use of funding 
                in higher education by--
                            ``(i) awarding State financial aid to 
                        students on the basis of need, rather than 
                        merit;
                            ``(ii) developing performance funding 
                        systems that measure and award funding to 
                        institutions of higher education based upon 
                        improvement in postsecondary education outcomes 
                        for students, including successful transfer 
                        from a 2-year institution of higher education 
                        to a 4-year institution of higher education and 
                        degree attainment; and
                            ``(iii) rewarding institutions that 
                        distribute their institutional aid based on 
                        need.
            ``(2) Annual performance measures and targets for the 
        programs and activities carried out under this part, which 
        shall include measures and targets for goals established by the 
        Secretary under section 796G as well as measures and targets 
        developed by the State and approved by the Secretary. The 
        annual performance measures and targets shall, at a minimum, 
        track the State's progress in--
                    ``(A) implementing the plan described in this 
                section;
                    ``(B) increasing the percentage of low income and 
                traditionally underrepresented students who enroll in, 
                persist through, and graduate from higher education, as 
                measured by--
                            ``(i) reducing the need for higher 
                        education remediation;
                            ``(ii) increasing higher education 
                        enrollment rates;
                            ``(iii) increasing persistence and 
                        completion rates in higher education;
                            ``(iv) increasing the rate at which 
                        students complete a program at an institution 
                        of higher education;
                            ``(v) increasing enrollment in dual 
                        enrollment programs and early college high 
                        school programs;
                            ``(vi) increasing the percentage of 
                        students who successfully complete and earn a 
                        minimum of 12 credits for rigorous 
                        postsecondary education courses while attending 
                        a secondary school; and
                            ``(vii) increasing the percentage of 
                        students who earn postsecondary credit and 
                        successfully have such credit accepted by an 
                        institution of higher education toward a degree 
                        or credential; and
                    ``(C) making progress on any other performance 
                measure identified by the Secretary.
            ``(3) Goals for increasing postsecondary credential 
        attainment by 2020 for traditionally underrepresented students.
    ``(c) Review and Approval.--Each State plan developed under this 
section shall be reviewed and approved by the Secretary.

``SEC. 796E. USE OF FUNDS.

    ``(a) In General.--A State receiving an implementation grant under 
this part shall use the funds to carry out any purpose included in the 
State's comprehensive State plan described in section 796D.
    ``(b) Prohibitions.--Federal funds made available under this part 
shall not be used--
            ``(1) to promote any lender's loans;
            ``(2) to supplement or supplant Federal, State, or 
        institutional financial aid; or
            ``(3) compensate for a decrease in State appropriations for 
        higher education.
    ``(c) Sufficient Progress.--If the Secretary determines, by the end 
of the third year of the grant, that a State receiving an 
implementation grant under this part is not making substantial progress 
on meeting the requirements of the comprehensive State plan under 
section 796D and meeting the performance measures and targets described 
in section 796D(b)(2), the Secretary--
            ``(1) shall cancel the grant; and
            ``(2) may use any funds returned or made available due to a 
        cancellation under paragraph (1) to--
                    ``(A) increase other grant awards under this part; 
                or
                    ``(B) award new grants to other eligible entities 
                under this part.

``SEC. 796F. MATCHING AND OTHER FINANCIAL REQUIREMENTS.

    ``(a) Matching Requirements.--
            ``(1) In general.--A State receiving a grant under this 
        part shall provide matching funds toward the costs of the grant 
        in the amount applicable under paragraph (2).
            ``(2) Amount of matching funds.--The matching funds 
        required under this paragraph shall be an amount equal to--
                    ``(A) in the case of a planning grant, 20 percent 
                of the amount of the grant for each year of the grant; 
                and
                    ``(B) in the case of an implementation grant--
                            ``(i) 20 percent of such costs for the 
                        first year of the grant;
                            ``(ii) 30 percent of such costs for the 
                        second year of the grant;
                            ``(iii) 40 percent of such costs for the 
                        third year of the grant;
                            ``(iv) 50 percent of such costs for the 
                        fourth year the grant; and
                            ``(v) 60 percent of such for the fifth year 
                        of the grant.
            ``(3) In cash or in-kind.--Matching funds provided under 
        this subsection shall be from non-Federal sources and may be 
        provided in cash or in-kind.
    ``(b) Supplement Not Supplant.--Federal funding provided under this 
part shall be used to supplement and not supplant other Federal, State, 
or institutional resources that would otherwise be expended to carry 
out the activities described in this part.
    ``(c) Maintenance of Effort.--
            ``(1) In general.--With respect to each fiscal year for 
        which a State receives a grant under this part, the State will 
        maintain State support for public institutions of higher 
        education (excluding support for capital projects, for research 
        and development, and for tuition and fees paid by students) at 
        least at the level of such support for the previous fiscal 
        year.
            ``(2) Financial hardship waiver.--A State may apply to the 
        Secretary for a waiver of, and the Secretary may waive, the 
        requirements of paragraph (1) if the State is experiencing a 
        financial hardship due to a natural disaster, unforeseen 
        decline in the financial resources of the State, or other 
        exceptional or uncontrollable circumstances.

``SEC. 796G. PERFORMANCE MEASURES.

    ``The Secretary shall establish performance measures for the 
programs and activities carried out under grants awarded under this 
part prior to awarding grants under this part. The Secretary shall 
ensure that such measures are made available to potential applicants 
prior to seeking applications for grants under this section.

``SEC. 796H. REPORTS; EVALUATIONS.

    ``(a) Reports.--
            ``(1) Implementation grants.--A State that receives an 
        implementation grant under this part shall submit to the 
        Secretary, at such time and in such manner as the Secretary may 
        require, an annual report including, at a minimum--
                    ``(A) data on the State's progress in achieving the 
                targets for the annual performance measures established 
                under section 796G; and
                    ``(B) a description of the challenges the State has 
                faced in carrying out the implementation grant under 
                this part, and how the State has addressed, or plans to 
                address, such challenges.
            ``(2) Planning grants.--A State that receives a planning 
        grant under this part shall submit to the Secretary, at such 
        time and in such manner as the Secretary may require, a report 
        that includes a copy of the State plan developed under the 
        grant.
    ``(b) Evaluation.--The Secretary shall--
            ``(1) acting through the Director of the Institute of 
        Education Sciences, evaluate the implementation and impact of 
        activities supported under this part; and
            ``(2) disseminate research on best practices.

``SEC. 796I. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2015 and each of the 
following 4 fiscal years.''.

                    TITLE VIII--ADDITIONAL PROGRAMS

SEC. 801. REORGANIZATION.

    Title VIII (20 U.S.C. 1161 et seq.) is amended--
            (1) by striking parts E, H, I, K, M, N, O, R, U, V, X, and 
        Y;
            (2) by redesignating parts F, G, J, L, P, Q, S, T, W, Z, 
        and AA as parts E, F, G, H, I, J, K, L, M, N, and O, 
        respectively; and
            (3) by redesignating sections 851, 861, 872, 873, 892, 895, 
        897, and 898 as sections 831, 836, 841, 846, 851, 856, 861, and 
        862, respectively.

SEC. 802. AUTHORIZATION OF APPROPRIATIONS FOR PROJECT GRAD.

    Section 801(i) (20 U.S.C. 1161a(i)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 803. AUTHORIZATION OF APPROPRIATIONS FOR THE MATHEMATICS AND 
              SCIENCE SCHOLARS PROGRAM.

    Section 802(f) (20 U.S.C. 1161b(f)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 804. COMMUNITY COLLEGE AND INDUSTRY PARTNERSHIPS PROGRAM.

    Part C of title VIII (20 U.S.C. 1161c et seq.) is amended to read 
as follows:

     ``PART C--COMMUNITY COLLEGE AND INDUSTRY PARTNERSHIPS PROGRAM

``SEC. 803. DEFINITIONS.

    ``In this part:
            ``(1) Community college.--The term `community college' 
        means a public institution of higher education as defined in 
        section 102 of the Higher Education Act, where the highest 
        degree offered is predominantly the associate's degree.
            ``(2) Local board.--The term `local board' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act.
            ``(3) Nontraditional student.--The term `nontraditional 
        student' means a student who is a low-income student and--
                    ``(A) who is an independent student, as defined in 
                section 480(d), or is an individual with a disability 
                as defined in section 3 of the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12102);
                    ``(B) who attends an institution of higher 
                education--
                            ``(i) on less than a full-time basis;
                            ``(ii) via evening, weekend, modular, or 
                        compressed courses; or
                            ``(iii) via distance education methods; and
                    ``(C) who--
                            ``(i) enrolled for the first time in an 
                        institution of higher education 3 or more years 
                        after completing secondary school; or
                            ``(ii) is employed for not less than 25 
                        hours per week.
            ``(4) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' means a credential 
        consisting of--
                    ``(A) an industry-recognized certificate or 
                certification;
                    ``(B) a certificate of completion of an 
                apprenticeship registered under the Act of August 16, 
                1937 (commonly known as the `National Apprenticeship 
                Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), 
                referred to as a `registered apprenticeship' for the 
                purpose of this part;
                    ``(C) a license recognized by the State involved or 
                the Federal Government; or
                    ``(D) an associate's or baccalaureate degree.
            ``(5) Secretaries.--The term `Secretaries' means the 
        Secretary of Education and the Secretary of Labor.
            ``(6) State board.--The term `State board' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act.

``SEC. 803A. COMMUNITY COLLEGE AND INDUSTRY PARTNERSHIPS PROGRAM.

    ``(a) Grants Authorized.--From funds appropriated under section 
803C, the Secretaries, in accordance with the interagency agreement 
described in section 803B, shall award competitive grants to eligible 
entities described in subsection (b) for the purpose of developing, 
offering, improving, or providing educational or career training 
programs.
    ``(b) Eligible Entity.--
            ``(1) Partnerships with employers or an employer or 
        industry partnership.--In order to be eligible for a grant 
        under this section, an entity shall--
                    ``(A) be--
                            ``(i) a community college that will use 
                        funds provided under this section for 
                        activities at the certificate and associate's 
                        degree levels;
                            ``(ii) a 4-year public institution of 
                        higher education that offers 2-year degrees, 
                        and that will use funds provided under this 
                        section for activities at the certificate and 
                        associate's degree levels;
                            ``(iii) a Tribal College or University (as 
                        defined in section 316(b));
                            ``(iv) a public or private nonprofit 2-year 
                        institution of higher education (as defined in 
                        section 102) in the Commonwealth of Puerto 
                        Rico, Guam, the United States Virgin Islands, 
                        American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, or any of the Freely 
                        Associated States; or
                            ``(v) a consortium of entities described in 
                        any of clauses (i) through (iv); and
                    ``(B) for purposes of the grant, be in partnership 
                with--
                            ``(i) an employer; or
                            ``(ii) an industry partnership representing 
                        multiple employers.
            ``(2) Additional partners.--
                    ``(A) Authorization of additional partners.--In 
                addition to partnering with an entity described in 
                paragraph (1)(B), an entity described in paragraph 
                (1)(A) may include in the partnership 1 or more of the 
                following entities:
                            ``(i) An adult education provider or 
                        institution of higher education.
                            ``(ii) A community-based organization with 
                        demonstrated expertise in serving non-
                        traditional students or providing education and 
                        training to workers or disconnected youth.
                            ``(iii) A joint labor-management 
                        partnership.
                            ``(iv) A State board or local board.
                            ``(v) Any other organization that the 
                        Secretaries consider appropriate.
                    ``(B) Collaboration with state and local boards.--
                An eligible entity shall collaborate with the State 
                board or local board, as appropriate, in the area 
                served by the eligible entity.
    ``(c) Application.--An eligible entity seeking a grant under this 
section shall submit an application to the Secretaries at such time and 
containing such information as the Secretaries determine is required, 
including a detailed description of--
            ``(1) the specific educational or career training program 
        that the eligible entity proposes and how the program meets the 
        criteria established under subsection (d), including the manner 
        in which the grant will be used to develop, offer, improve, or 
        provide the educational or career training program;
            ``(2) the extent to which the program will meet the 
        educational or career training needs of workers in the area 
        served by the eligible entity;
            ``(3) the extent to which the program will meet the skill 
        needs of employers in the area for workers in in-demand 
        industry sectors and occupations;
            ``(4) the extent to which the proposed program fits within 
        any overall strategic plan regarding education and training 
        developed by the eligible entity;
            ``(5)(A) any previous experience of the eligible entity in 
        providing educational or career training programs, including 
        the use of research-based models to provide such programs; or
            ``(B) in the case of an eligible entity without previous 
        experience, a detailed description of how the entity will carry 
        out the activities required under the grant, including the 
        research-based model the entity plans to use to provide such 
        programs;
            ``(6) the recognized postsecondary credentials that 
        participants in the proposed educational or career training 
        program will obtain, and how the program meets quality criteria 
        for programs leading to such credentials, as established by the 
        Governor of a State in which at least 1 of the entities 
        described in subsection (b)(1)(A) that comprise the eligible 
        entity is located;
            ``(7) how the eligible entity will sustain the educational 
        or career training program after the end of grant period;
            ``(8) how any educational or career training program 
        developed under this grant will be coordinated with existing 
        education and training programs, as of the date of the 
        application, in the relevant State and region that are 
        supported by Federal, State, or other funds; and
            ``(9) how the eligible entity will measure the performance 
        of, and evaluate, the educational or career training program to 
        be supported by this grant, including the performance outcomes 
        to be used by the eligible entity and an assurance that such 
        entity will provide the information requested by the 
        Secretaries for evaluations and reports under subsection (f).
    ``(d) Criteria for Award.--
            ``(1) In general.--Grants under this section shall be 
        awarded based on criteria established by the Secretaries that 
        include the following:
                    ``(A) A determination of the merits of the 
                proposal, in each application, to develop, offer, 
                improve, or provide an educational or career training 
                program. In making such a determination, the 
                Secretaries shall not automatically disqualify an 
                eligible entity because of the absence of previous 
                experience described in subsection (c)(5)(A).
                    ``(B) An assessment of the current and projected 
                employment opportunities available (as of the date of 
                the application) in the area to individuals who 
                complete an educational or career training program that 
                the eligible entity proposes to develop, offer, 
                improve, or provide.
                    ``(C) An assessment of prior demand for training 
                programs by individuals eligible for training and 
                served by the eligible entity, as well as availability 
                and capacity of existing (as of the date of the 
                assessment) training programs to meet future demand for 
                training programs.
            ``(2) Priority.--In awarding grants under this section, the 
        Secretaries shall give priority to eligible entities that--
                    ``(A) are in a partnership with an employer or an 
                industry partnership that--
                            ``(i) agrees to pay a portion of the costs 
                        for participants of educational or career 
                        training programs supported under the grant; or
                            ``(ii) agrees to hire individuals who have 
                        attained a recognized postsecondary credential 
                        resulting from the educational or career 
                        training program supported under the grant;
                    ``(B) enter into a partnership with a labor 
                organization, labor-management training program, or 
                registered apprenticeship program, to provide, through 
                the educational or career training program, technical 
                expertise for occupationally specific education 
                necessary for a recognized postsecondary credential 
                leading to a skilled occupation in an in-demand 
                industry sector;
                    ``(C) demonstrate a partnership with a State board 
                or local board, as appropriate;
                    ``(D) are focused on serving individuals with 
                barriers to employment, youth who are out-of-school or 
                not in the workforce, low-income, nontraditional 
                students, students who are dislocated workers, students 
                who are veterans, or students who are long-term 
                unemployed;
                    ``(E) include community colleges serving areas with 
                high unemployment rates, including rural areas and 
                areas with high unemployment rates for youth;
                    ``(F) are eligible entities that include an 
                institution of higher education eligible for assistance 
                under title III or V; or
                    ``(G) are in a partnership, with an employer or 
                industry partnership, that increases domestic 
                production of goods, such as advanced manufacturing or 
                production of clean energy technology.
    ``(e) Use of Funds.--Grant funds awarded under this section shall 
be used for 1 or more of the following:
            ``(1) The development, offering, improvement, or provision 
        of educational or career training programs that--
                    ``(A) provide relevant job training for occupations 
                that will meet the needs of employers in in-demand 
                industry sectors; and
                    ``(B) may include registered apprenticeship 
                programs, on-the-job training programs, and programs 
                that support employers in upgrading the skills of their 
                workforce.
            ``(2) The development and implementation of policies and 
        programs to expand opportunities for students to earn a 
        recognized postsecondary credential, including a degree, in in-
        demand industry sectors or occupations, including by--
                    ``(A) facilitating the transfer of academic credits 
                between institutions of higher education in the State, 
                including the transfer of academic credits for courses 
                in the same field of study;
                    ``(B) expanding articulation agreements and 
                policies that guarantee transfers between such 
                institutions, including through common course numbering 
                and use of a general core curriculum; and
                    ``(C) developing or enhancing student support 
                services programs.
            ``(3) The creation or enhancement of programs that provide 
        a sequence or integration of education and occupational 
        training that leads to a recognized postsecondary credential, 
        including a degree, including programs that--
                    ``(A) provide adult education and literacy 
                activities concurrently and contextually with 
                occupational training, and support services for 
                participants, which may include such activities and 
                services provided along a career pathway;
                    ``(B) facilitate means of transitioning 
                participants from non-credit occupational, adult 
                education, or developmental coursework to for-credit 
                coursework within and across institutions;
                    ``(C) build or enhance linkages, including the 
                development of dual enrollment programs and early 
                college high schools, between secondary education or 
                adult education programs (including programs 
                established under the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2301 et 
                seq.) and the Adult Education and Family Literacy Act 
                (20 U.S.C. 9201 et seq.));
                    ``(D) are innovative programs designed to increase 
                the provision of training for students, including 
                students who are members of the National Guard or 
                Reserves, to enter occupations in in-demand industry 
                sectors; or
                    ``(E) support paid internships that will allow 
                students to simultaneously earn postsecondary credit 
                and gain relevant employment experience in an in-demand 
                industry sector or occupation through work-based 
                learning, which shall include opportunities that 
                transition individuals into employment.
            ``(4) The support of skills consortia in an in-demand 
        industry sector that will identify pressing workforce needs and 
        develop solutions such as--
                    ``(A) standardizing industry certifications;
                    ``(B) developing new training technologies; and
                    ``(C) collaborating with industry employers to 
                define and describe how specific skills lead to 
                particular jobs and career opportunities.
    ``(f) Evaluations and Reports.--
            ``(1) Annual reports to secretaries.--
                    ``(A) In general.--Each eligible entity receiving a 
                grant under this section shall submit to the 
                Secretaries an annual report regarding the activities 
                carried out under the grant, including the progress 
                made by the educational or career training program with 
                respect to the performance outcomes described in 
                subsection (c)(9) and any other information the 
                Secretaries may require.
                    ``(B) Disaggregation.--The data provided to the 
                Secretaries in accordance with this subsection shall be 
                disaggregated by, at a minimum, race, ethnicity, and 
                eligibility to receive a Federal Pell Grant, except 
                that such disaggregation shall not be required when the 
                number of participants in a category is insufficient to 
                yield statistically reliable information or when the 
                results would reveal personally identifiable 
                information about an individual participant.
            ``(2) Evaluations.--The Secretaries shall, directly or by 
        contract, conduct an annual evaluation of the grant program 
        carried out under this section, which will include a 
        determination of the progress made by each educational or 
        career training program supported by the grant with respect to 
        the performance outcomes described in subsection (c)(9), using 
        the reports provided by the eligible entities under paragraph 
        (1) and any other information that the Secretaries request from 
        the eligible entities for purposes of the evaluation.
            ``(3) Reports to congress.--The Secretaries shall jointly 
        develop and submit a biennial report to the authorizing 
        committees regarding the grants awarded under this section and 
        the outcomes of such grants, including the progress made by 
        each educational or career training program supported under 
        such grant with respect to the performance outcomes described 
        in subsection (c)(9) and the results of the evaluations 
        described in paragraph (2).

``SEC. 803B. INTERAGENCY AGREEMENT.

    ``(a) In General.--The Secretary of Labor and the Secretary of 
Education shall jointly develop policies for the administration of this 
part in accordance with such terms as the Secretaries shall set forth 
in an interagency agreement. Such interagency agreement, at a minimum, 
shall include a description of the respective roles and 
responsibilities of the Secretaries in carrying out this part (both 
jointly and separately), including--
            ``(1) how the funds available under this part will be 
        obligated and disbursed and compliance with applicable laws 
        (including regulations) will be ensured, as well as how the 
        recipients of the grants will be selected and monitored;
            ``(2) how evaluations and research will be conducted on the 
        effectiveness of grants awarded under this part in addressing 
        the education and employment needs of workers, and employers;
            ``(3) how technical assistance will be provided to 
        applicants and grant recipients;
            ``(4) how information will be disseminated, including 
        through electronic means, on best practices and effective 
        strategies and service delivery models for activities carried 
        out under this part; and
            ``(5) how policies and processes critical to the successful 
        achievement of the education, training, and employment goals of 
        this part will be established.
    ``(b) Transfer Authority.--The Secretary of Labor and the Secretary 
of Education shall have the authority to transfer funds between the 
Department of Labor and the Department of Education to carry out this 
part in accordance with the agreement described in subsection (a).

``SEC. 803C. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary to carry out this part for fiscal year 2015 and each of the 4 
succeeding fiscal years.''.

SEC. 805. AUTHORIZATION OF APPROPRIATIONS FOR CAPACITY FOR NURSING 
              STUDENTS AND FACULTY.

    Section 804(f) (20 U.S.C. 1161d(f)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 806. AUTHORIZATION OF APPROPRIATIONS FOR TEACH FOR AMERICA.

    Section 806(f) (20 U.S.C. 1161f(f)) is amended by striking 
paragraph (1) and inserting the following:
            ``(1) In general.--For the purpose of carrying out this 
        section, there are authorized to be appropriated such sums as 
        may be necessary for fiscal year 2015 and each of the five 
        succeeding fiscal years.''.

SEC. 807. AUTHORIZATION OF APPROPRIATIONS FOR THE PATSY T. MINK 
              FELLOWSHIP PROGRAM.

    Section 807(f) (20 U.S.C. 1161g(f)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 808. AUTHORIZATION OF APPROPRIATIONS FOR IMPROVING SCIENCE, 
              TECHNOLOGY, ENGINEERING, AND MATHEMATICS EDUCATION WITH A 
              FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS.

    Section 819(i) (20 U.S.C. 1161j(i)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 809. AUTHORIZATION OF APPROPRIATIONS FOR STUDENT SAFETY AND CAMPUS 
              EMERGENCY MANAGEMENT.

    Section 821(f) (20 U.S.C. 1161l(f)) is amended by striking ``2009'' 
and inserting ``2015''.

SEC. 810. AUTHORIZATION OF APPROPRIATIONS FOR THE EDUCATION DISASTER 
              AND EMERGENCY RELIEF PROGRAM.

    Section 824(i) (20 U.S.C. 1161l-3(i)) is amended by striking 
``2009'' and inserting ``2015''.

SEC. 811. AUTHORIZATION OF APPROPRIATIONS FOR THE JOBS TO CAREERS 
              PROGRAM.

    Section 831(j), as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161p(j)), is amended by striking ``2009'' and inserting 
``2015''.

SEC. 812. AUTHORIZATION OF APPROPRIATIONS FOR RURAL DEVELOPMENT GRANTS 
              FOR RURAL-SERVING COLLEGES AND UNIVERSITIES.

    Section 861(g), as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161q(g)), is amended by striking ``2009'' and inserting 
``2015''.

SEC. 813. AUTHORIZATION OF APPROPRIATIONS FOR TRAINING FOR REALTIME 
              WRITERS.

    Section 841(e), as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161s(e)), is amended by striking ``2009'' and inserting 
``2015''.

SEC. 814. AUTHORIZATION OF APPROPRIATIONS FOR CENTERS OF EXCELLENCE FOR 
              VETERAN STUDENT SUCCESS.

    Section 846(f), as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161t(f)), is amended by striking ``2009'' and inserting 
``2015''.

SEC. 815. AUTHORIZATION OF APPROPRIATIONS FOR PATH TO SUCCESS.

    Section 851(g), as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161w(g)), is amended by striking ``2009'' and inserting 
``2015''.

SEC. 816. AUTHORIZATION OF APPROPRIATIONS FOR THE HENRY KUUALOHA GIUGNI 
              KUPUNA MEMORIAL ARCHIVES.

    Section 856(c), as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161z(c)), is amended by striking ``2009'' and inserting 
``2015''.

SEC. 817. APPROPRIATIONS FOR MASTERS DEGREE PROGRAMS.

    Section 861 as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161aa), is amended by striking ``$11,500,000 for fiscal year 
2009'' and inserting ``such sums as may be necessary for fiscal year 
2015''.

SEC. 818. APPROPRIATIONS FOR POSTBACCALAUREATE PROGRAMS.

    Section 862 as redesignated by paragraph (3) of section 801 (20 
U.S.C. 1161aa-1), is amended by striking ``$11,500,000 for fiscal year 
2009'' and inserting ``such sums as may be necessary for fiscal year 
2015''.

SEC. 819. TYLER CLEMENTI PROGRAM.

    Title VIII (20 U.S.C. 1161 et seq.), as amended by section 801, is 
further amended by adding at the end the following:

                    ``PART P--TYLER CLEMENTI PROGRAM

``SEC. 864. TYLER CLEMENTI PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) an institution of higher education, including 
                an institution of higher education in a collaborative 
                partnership with a nonprofit organization; or
                    ``(B) a consortium of institutions of higher 
                education located in the same State.
            ``(2) Harassment.--The term `harassment' has the meaning 
        given the term in section 485(f)(6)(A).
    ``(b) Program Authorized.--The Secretary is authorized to award 
grants, on a competitive basis, to eligible entities to enable eligible 
entities to carry out the authorized activities described in subsection 
(d).
    ``(c) Amount of Grant Awards.--The Secretary shall ensure that each 
grant awarded under this section is of sufficient amount to enable the 
grantee to meet the purpose of this section.
    ``(d) Authorized Activities.--An eligible entity that receives a 
grant under this section shall use the funds made available through the 
grant to address 1 or more of the types of harassment listed in section 
485(f)(6)(A)(vi) by initiating, expanding, or improving programs--
            ``(1) to prevent the harassment of students at institutions 
        of higher education;
            ``(2) at institutions of higher education that provide 
        counseling or redress services to students who have suffered 
        such harassment or students who have been accused of subjecting 
        other students to such harassment; or
            ``(3) that educate or train students, faculty, or staff of 
        institutions of higher education about ways to prevent 
        harassment or ways to address such harassment if it occurs.
    ``(e) Application.--To be eligible to receive a grant under this 
section, an eligible entity shall submit an application to the 
Secretary at such time, in such manner, and containing such 
information, as the Secretary may require.
    ``(f) Duration; Renewal.--A grant under this section shall be 
awarded for a period of not more than 3 years. The Secretary may renew 
a grant under this section for 1 additional period of not more than 2 
years.
    ``(g) Award Considerations.--In awarding a grant under this 
section, the Secretary shall select eligible entities that demonstrate 
the greatest need for a grant and the greatest potential benefit from 
receipt of a grant.
    ``(h) Report and Evaluation.--
            ``(1) Evaluation and report to the secretary.--Not later 
        than 6 months after the end of the eligible entity's grant 
        period, the eligible entity shall--
                    ``(A) evaluate the effectiveness of the activities 
                carried out with the use of funds awarded pursuant to 
                this section in decreasing harassment and improving 
                tolerance; and
                    ``(B) prepare and submit to the Secretary a report 
                on the results of the evaluation conducted by the 
                entity.
            ``(2) Evaluation and report to congress.--Not later than 12 
        months after the date of receipt of the first report submitted 
        pursuant to paragraph (1) and annually thereafter, the 
        Secretary shall provide to Congress a report that includes the 
        following:
                    ``(A) The number and types of eligible entities 
                receiving assistance under this section.
                    ``(B) The anti-harassment programs being 
                implemented with assistance under this section and the 
                costs of such programs.
                    ``(C) Any other information determined by the 
                Secretary to be useful in evaluating the overall 
                effectiveness of the program established under this 
                section in decreasing incidents of harassment at 
                institutions of higher education.
            ``(3) Best practices report.--The Secretary shall use the 
        information provided under paragraph (1) to publish a report of 
        best practices for combating harassment at institutions of 
        higher education. The report shall be made available to all 
        institutions of higher education and other interested parties.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 4 succeeding fiscal years.''.

TITLE IX--HIGHER EDUCATION OPPORTUNITIES AND SUPPORTS FOR STUDENTS WITH 
                              DISABILITIES

SEC. 901. HIGHER EDUCATION OPPORTUNITIES AND SUPPORTS FOR STUDENTS WITH 
              DISABILITIES.

    The Act (20 U.S.C. 1001 et seq.) is amended by adding at the end 
the following:

 ``TITLE IX--HIGHER EDUCATION OPPORTUNITIES AND SUPPORTS FOR STUDENTS 
                           WITH DISABILITIES

                     ``PART A--NATIONAL ACTIVITIES

``SEC. 901. NATIONAL TECHNICAL ASSISTANCE CENTERS FOR HIGHER EDUCATION 
              ACCESS.

    ``(a) Purpose.--It is the purpose of this section to provide 
technical assistance and information--
            ``(1) about the rights and responsibilities of 
        postsecondary students with disabilities under the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and the 
        Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.); and
            ``(2) to support the recruitment, enrollment, retention, 
        graduation, and education of such students.
    ``(b) Administration.--The activities under this section shall be 
jointly administered by the Office of Postsecondary Education and the 
Office of Special Education and Rehabilitative Services.
    ``(c) National Technical Assistance Center for College Students 
With Disabilities and Their Families.--
            ``(1) In general.--From amounts appropriated to carry out 
        this section, the Secretary shall award a grant to, or enter 
        into a contract or cooperative agreement with, an eligible 
        entity to provide for the establishment and support of a 
        National Technical Assistance Center for College Students With 
        Disabilities and Their Families (hereafter referred to as the 
        `National Center for Students With Disabilities'). The National 
        Center for Students With Disabilities shall carry out the 
        duties set forth in paragraph (3).
            ``(2) Eligible entity.--In this subsection, the term 
        `eligible entity' means an institution of higher education, a 
        nonprofit organization, or a partnership of 2 or more such 
        institutions or organizations, with demonstrated expertise in--
                    ``(A) the recruitment, enrollment, retention, 
                graduation, and education of students with 
                disabilities, including students with autism spectrum 
                disorder and other developmental disabilities, in 
                postsecondary education;
                    ``(B) the technical knowledge necessary for the 
                dissemination of information in accessible formats; and
                    ``(C) creating and disseminating convenient and 
                credible online resources.
            ``(3) Duties.--The National Center for Students With 
        Disabilities shall provide information and technical assistance 
        to postsecondary students with disabilities and the families of 
        postsecondary students with disabilities to support students 
        across the broad spectrum of disabilities, including 
        individuals with autism spectrum disorder and other 
        developmental disabilities, which may include providing--
                    ``(A) information to assist individuals with 
                disabilities who are prospective students of an 
                institution of higher education in planning for 
                postsecondary education while in secondary school, and 
                earlier;
                    ``(B) information and technical assistance--
                            ``(i) including self-advocacy skills, to 
                        individualized education program teams (as 
                        defined in section 614(d)(1) of the Individuals 
                        with Disabilities Education Act) for secondary 
                        school students with disabilities; and
                            ``(ii) to early outreach and student 
                        services programs to support students across a 
                        broad spectrum of disabilities with the 
                        successful transition to postsecondary 
                        education;
                    ``(C) information on evidence-based supports, 
                services, and accommodations that are available in 
                postsecondary settings, including services such as 
                vocational rehabilitation that are provided by other 
                agencies, and providing information about how to 
                qualify for those services;
                    ``(D) information on student mentoring and 
                networking opportunities for students with 
                disabilities;
                    ``(E) information on effective recruitment and 
                transition programs at postsecondary educational 
                institutions; and
                    ``(F) information on support (including tuition, as 
                appropriate) for advanced training in a science, 
                technology, engineering, or mathematics (including 
                computer science) field, medicine, law, or business.
    ``(d) National Technical Assistance Center For Disability Support 
Services at Institutions of Higher Education.--
            ``(1) In general.--From amounts appropriated to carry out 
        this section, the Secretary shall award a grant to, or enter 
        into a contract or cooperative agreement with, an eligible 
        entity to provide for the establishment and support of a 
        National Technical Assistance Center for Disability Support 
        Services at Institutions of Higher Education (hereafter 
        referred to as the `National Center for Institutions of Higher 
        Education'). The National Center for Institutions of Higher 
        Education shall carry out the duties set forth in paragraph 
        (3).
            ``(2) Eligible entity.--In this subsection, the term 
        `eligible entity' means an institution of higher education, a 
        nonprofit organization, or a partnership of 2 or more such 
        institutions or organizations, with demonstrated expertise in--
                    ``(A) the recruitment, enrollment, retention, 
                graduation, and education of students with disabilities 
                in postsecondary education, including students with 
                autism spectrum disorder and other developmental 
                disabilities;
                    ``(B) supporting faculty and understanding best 
                practices in working with students with disabilities, 
                including students with autism spectrum disorder and 
                other developmental disabilities;
                    ``(C) technical knowledge necessary for the 
                dissemination of information in accessible formats; and
                    ``(D) identifying instructional strategies that are 
                effective for students with disabilities, including 
                students with autism spectrum disorder and other 
                developmental disabilities.
            ``(3) Duties.--The National Center for Institutions of 
        Higher Education shall provide information and technical 
        assistance to faculty, staff, and administrators of 
        institutions of higher education to improve the services 
        provided to, the accommodations for, the retention rates of, 
        and the completion rates of, students with disabilities, 
        including students with autism spectrum disorder and other 
        developmental disabilities, in higher education settings, which 
        may include--
                    ``(A) collecting, developing, and disseminating 
                quality indicators and best and promising practices and 
                materials for accommodating and supporting students 
                with disabilities;
                    ``(B) training and supporting students with 
                disabilities to enhance and support their self-advocacy 
                skills;
                    ``(C) promoting awareness of, and the use of, 
                assistive technology and augmentative communication in 
                postsecondary education settings;
                    ``(D) developing and providing training modules for 
                higher education faculty and staff on exemplary 
                practices for accommodating and supporting 
                postsecondary students with disabilities across a range 
                of academic fields, which may include universal design 
                for learning;
                    ``(E) developing technology-based tutorials for 
                higher education faculty and staff, including new 
                faculty and graduate students, on evidence-based best 
                and promising practices related to support and 
                retention of students with disabilities in 
                postsecondary education;
                    ``(F) developing and providing training and 
                technical assistance for faculty and staff of 
                institutions of higher education on emerging evidence-
                based best practices for the selection, production, and 
                timely delivery of high-quality accessible 
                instructional materials to meet the needs of students 
                with disabilities in postsecondary settings;
                    ``(G) developing and disseminating an evidence-
                based operational model for institutions of higher 
                education to timely provide high-quality accessible 
                instructional materials to students with disabilities; 
                and
                    ``(H) information on providing support (including 
                tuition, as appropriate) for advanced training in a 
                science, technology, engineering, or mathematics 
                (including computer science) field, medicine, law, or 
                business.

``SEC. 902. NATIONAL DATA CENTER ON HIGHER EDUCATION AND DISABILITY.

    ``(a) Purpose.--It is the purpose of this section to collect, 
maintain, and disseminate data and information about the experiences 
and outcomes of postsecondary education students with disabilities.
    ``(b) National Data Center.--
            ``(1) In general.--From amounts appropriated to carry out 
        this section, the Secretary shall award a grant to, or enter 
        into a contract or cooperative agreement with, an eligible 
        entity to provide for the establishment and support of a 
        National Data Center on Higher Education and Disability (in 
        this part referred to as the `National Data Center'). The 
        National Data Center shall carry out the duties set forth in 
        paragraph (4).
            ``(2) Administration.--The program under this section shall 
        be jointly administered by the Office of Postsecondary 
        Education and the Office of Special Education and 
        Rehabilitative Services.
            ``(3) Eligible entity.--In this section, the term `eligible 
        entity' means an institution of higher education, a nonprofit 
        organization, or a partnership of 2 or more such institutions 
        or organizations, with demonstrated expertise in--
                    ``(A) supporting students with disabilities in 
                postsecondary education;
                    ``(B) technical knowledge necessary for the 
                dissemination of information in accessible formats; and
                    ``(C) working with diverse types of institutions of 
                higher education, including community colleges.
            ``(4) Duties.--The duties of the National Data Center shall 
        include the following:
                    ``(A) Information collection and dissemination.--
                            ``(i) Database.--The National Data Center 
                        shall be responsible for using the data 
                        submitted in accordance with section 903--
                                    ``(I) to build, maintain, and 
                                update a database of information about 
                                disability support services provided by 
                                institutions of higher education; or
                                    ``(II) to expand and update any 
                                existing database containing such 
                                information.
                            ``(ii) Contents of database.--The database 
                        described in clause (i) shall contain de-
                        identified, individual student-level data for 
                        every student who discloses the student's 
                        disability to, and seeks disability 
                        accommodations from, the institution of higher 
                        education that the student attends, including--
                                    ``(I) the student's disability 
                                category described in section 903(a);
                                    ``(II) the supports and 
                                accommodations provided to the student;
                                    ``(III) enrollment information, 
                                including the student's program of 
                                study, progress toward completion of a 
                                certificate or degree, and program 
                                completion status; and
                                    ``(IV) information about the 
                                student's employment or further 
                                education for the 5 years following 
                                completion of the student's program of 
                                study.
                            ``(iii) Information for each institution of 
                        higher education.--In addition to the data 
                        described in clause (ii), such database shall 
                        include, for each institution of higher 
                        education required to submit information in 
                        accordance with section 903--
                                    ``(I) the institution's--
                                            ``(aa) disability 
                                        documentation requirements;
                                            ``(bb) support services 
                                        that are available for students 
                                        with disabilities;
                                            ``(cc) policies on 
                                        accommodations for students 
                                        with disabilities; and
                                            ``(dd) accessible 
                                        instructional materials;
                                    ``(II) regularly updated reports 
                                regarding the students with 
                                disabilities who sought disability 
                                accommodations through the 
                                institution's disability support 
                                services office, including information 
                                about the services received by such 
                                students;
                                    ``(III) other information relevant 
                                to students with disabilities, as 
                                determined by the Secretary; and
                                    ``(IV) the information described in 
                                subparagraphs (A) through (D) of 
                                paragraph (5).
                            ``(iv) Website.--The National Data Center 
                        shall make available to the general public, 
                        through a website that is built to high 
                        technical standards of accessibility 
                        practicable for the broad spectrum of 
                        individuals with disabilities--
                                    ``(I) the data described in clause 
                                (ii), aggregated at the institution 
                                level;
                                    ``(II) the information described in 
                                clause (iii); and
                                    ``(III) links to information about 
                                student financial aid, including 
                                Federal and institutional student aid.
                    ``(B) Disability support services.--The National 
                Data Center shall work with organizations and 
                individuals that have proven expertise related to 
                disability support services for postsecondary students 
                with disabilities to evaluate, improve, and disseminate 
                information related to the delivery of high-quality 
                disability support services at institutions of higher 
                education.
            ``(5) Review and report.--Not later than 3 years after the 
        establishment of the National Data Center, and every 2 years 
        thereafter, the National Center shall prepare and disseminate a 
        report to the Secretary and the authorizing committees of 
        Congress analyzing the condition of postsecondary services and 
        success for students with disabilities. Such report shall 
        include--
                    ``(A) a review of the activities and the 
                effectiveness of the programs authorized under this 
                part;
                    ``(B) annual enrollment, retention, and graduation 
                rates of students with disabilities in institutions of 
                higher education that receive funds under title IV, 
                disaggregated by disability according to the categories 
                established under section 903(a) (unless disaggregation 
                results in possible identification of a student);
                    ``(C) recommendations for effective postsecondary 
                supports and services for students with disabilities, 
                and how such supports and services may be widely 
                implemented at institutions of higher education;
                    ``(D) recommendations on reducing barriers to full 
                participation for students with disabilities in higher 
                education; and
                    ``(E) a description of disability support services 
                and strategies with a demonstrated record of 
                effectiveness in improving the success of such students 
                in postsecondary education.
            ``(6) Staffing of the national data center.--In hiring 
        employees of the National Data Center, the National Data Center 
        shall consider the expertise and experience of prospective 
        employees in creating and maintaining high quality national 
        databases focused on the experiences and outcomes of 
        individuals with disabilities.

``SEC. 903. REQUIREMENT FOR SUBMITTING DATA TO THE NATIONAL DATA 
              CENTER.

    ``(a) Disability Categories.--The National Data Center, the 
National Center for Students With Disabilities, and the National Center 
for Institutions of Higher Education shall adopt the following 
categories to describe data collected, analyzed, and disseminated about 
students with disabilities:
            ``(1) Attention Deficit Hyperactivity Disorder (ADHD).
            ``(2) Autism, including Asperger Syndrome.
            ``(3) Blind or visually impaired.
            ``(4) Brain Injury, including acquired brain injury and 
        traumatic brain injury.
            ``(5) Deaf or hard of hearing.
            ``(6) Deaf-blind.
            ``(7) Intellectual disability.
            ``(8) Learning disability.
            ``(9) Long-term health condition.
            ``(10) Physical or mobility disability.
            ``(11) Psychiatric disability.
            ``(12) Speech or language disability.
            ``(13) Other disability.
    ``(b) Data To Be Submitted.--Each institution of higher education 
that receives funds under title IV shall collect and submit the 
following data to the National Data Center:
            ``(1) The institution's disability documentation 
        requirements.
            ``(2) The support services available at the institution.
            ``(3) Links to information about institutional financial 
        aid.
            ``(4) The institution's accommodations policies.
            ``(5) The institution's accessible instructional materials.
            ``(6) Individual-level, de-identified data describing 
        services and accommodations provided to students with 
        disabilities, as well as the retention and graduation rates of 
        students with disabilities who sought disability services and 
        accommodations from the institution of higher education.
            ``(7) The institution's annual budget devoted to providing 
        disability supports, services, and accommodations.
            ``(8) Other information relevant to students with 
        disabilities, as required by the Secretary.
    ``(c) Disaggregation of Data.--Institutions of higher education 
submitting the data required under subsection (b) shall collect, 
organize, and submit such data in a way that supports disaggregation by 
the disability categories specified in subsection (a).
    ``(d) Public Availability of Data.--All data submitted to the 
National Data Center by institutions of higher education in accordance 
with subsection (b) shall be made available to the public not later 
than 1 year after that data is submitted to the National Data Center.

     ``PART B--TRANSITION PROGRAMS FOR POSTSECONDARY STUDENTS WITH 
                              DISABILITIES

``Subpart 1--Inclusive Higher Education for Students With Intellectual 
                              Disabilities

``SEC. 911. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--It is the purpose of this subpart to promote the 
successful transition of students with intellectual disabilities into 
higher education that leads to successful employment outcomes in the 
integrated, competitive workforce.
    ``(b) Definitions.--In this subpart:
            ``(1) Inclusive higher education program for students with 
        intellectual disabilities.--The term `inclusive higher 
        education program for students with intellectual disabilities' 
        means a degree, certificate, or non-degree program that--
                    ``(A) is offered by an institution of higher 
                education;
                    ``(B) is designed to support students with 
                intellectual disabilities who are seeking to continue 
                academic, career and technical, or independent living 
                instruction at an institution of higher education in 
                order to prepare for competitive integrated employment;
                    ``(C) includes an advisement component and program 
                of study;
                    ``(D) requires students with intellectual 
                disabilities to participate in work-based training or 
                internships with nondisabled individuals; and
                    ``(E) requires students with intellectual 
                disabilities to participate, on not less than a half-
                time basis, each academic term (as determined by the 
                institution), with such participation focusing on 
                academic components and occurring through one or more 
                of the following activities:
                            ``(i) Regular enrollment in credit-bearing 
                        courses with nondisabled students offered by 
                        the institution.
                            ``(ii) Auditing or participating in courses 
                        with nondisabled students offered by the 
                        institution for which the student does not 
                        receive regular academic credit.
                            ``(iii) Enrollment in noncredit-bearing, 
                        nondegree courses with nondisabled students.
            ``(2) Student with an intellectual disability.--The term 
        `student with an intellectual disability' means a student--
                    ``(A) with a cognitive impairment, characterized by 
                significant limitations in--
                            ``(i) intellectual and cognitive 
                        functioning; and
                            ``(ii) adaptive behavior as expressed in 
                        conceptual, social, and practical adaptive 
                        skills; and
                    ``(B) who is currently, or was formerly, eligible 
                for a free appropriate public education under the 
                Individuals with Disabilities Education Act.

``SEC. 912. INCLUSIVE HIGHER EDUCATION PROGRAM FOR STUDENTS WITH 
              INTELLECTUAL DISABILITIES.

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts appropriated to carry out 
        this section, the Secretary shall annually award grants, on a 
        competitive basis, to institutions of higher education (or 
        consortia of institutions of higher education), to enable the 
        institutions or consortia to create or expand high quality, 
        inclusive higher education programs for students with 
        intellectual disabilities. The Secretary shall award grants 
        under this section in a manner that ensures that new 5-year 
        grants are awarded each fiscal year.
            ``(2) Administration.--The program under this section shall 
        be administered by the Office of Postsecondary Education, in 
        collaboration with the Office of Special Education and 
        Rehabilitative Services.
            ``(3) Duration of grants.--A grant under this section shall 
        be awarded for a period of 5 years. An institution of higher 
        education (or a consortium) is only eligible for one 5-year 
        grant under this section. A recipient institution or consortium 
        shall sustain the program carried out under this section after 
        the expiration of the grant period using funding from another 
        source.
    ``(b) Application.--An institution of higher education (or a 
consortium) desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    ``(c) Award Basis.--In awarding grants under this section, the 
Secretary shall--
            ``(1) prohibit grantees from the 2010-2014 grant cycle 
        under this section from competing for the 2014-2018 grant 
        cycle, in order to generate a larger number of self-sustaining 
        inclusive higher education programs for students with 
        intellectual disabilities across the United States;
            ``(2) provide for an equitable geographic distribution of 
        such grants;
            ``(3) to the greatest extent possible, provide for an 
        equitable distribution of such grants between 4-year 
        institutions of higher education and 2-year institutions of 
        higher education, including community colleges;
            ``(4) provide grant funds for inclusive higher education 
        programs for students with intellectual disabilities that will 
        serve areas that are underserved by programs of this type; and
            ``(5) give preference to applicants that agree to 
        incorporate into the inclusive higher education programs for 
        students with intellectual disabilities carried out under the 
        grant, 1 or more of the following elements:
                    ``(A) The formation of a partnership with any 
                relevant State or local agency serving students with 
                intellectual disabilities, such as a vocational 
                rehabilitation agency.
                    ``(B) In the case of an institution of higher 
                education that provides institutionally owned or 
                operated housing for students attending the 
                institution, the integration of students with 
                intellectual disabilities into the housing offered to 
                nondisabled students.
                    ``(C) The involvement of students attending the 
                institution of higher education who are studying 
                special education, general education, vocational 
                rehabilitation, assistive technology, or related fields 
                in the program.
    ``(d) Use of Funds.--An institution of higher education (or a 
consortium) receiving a grant under this section shall use the grant 
funds to establish an inclusive higher education program for students 
with intellectual disabilities that--
            ``(1) serves students with intellectual disabilities;
            ``(2) provides individual supports and services for the 
        academic and social inclusion of students with intellectual 
        disabilities in academic courses, extracurricular activities, 
        and other aspects of the institution of higher education's 
        regular postsecondary program;
            ``(3) with respect to the students with intellectual 
        disabilities participating in the program, provides a focus 
        on--
                    ``(A) academic enrichment;
                    ``(B) integrated socialization with nondisabled 
                students;
                    ``(C) independent living skills, including self-
                advocacy skills; and
                    ``(D) integrated work experiences and career skills 
                that lead to competitive integrated employment;
            ``(4) provides integrated person-centered planning in the 
        development of the course of study for each student with an 
        intellectual disability participating in the program;
            ``(5) participates with the inclusive higher education 
        programs for students with intellectual disabilities 
        coordinating center established under section 913 (referred to 
        in this part as the `coordinating center') in the evaluation of 
        the program, including by regularly submitting data on the 
        experiences and outcomes of individual students participating 
        in the program;
            ``(6) partners with 1 or more local educational agencies to 
        support students with intellectual disabilities participating 
        in the program who are still eligible for special education and 
        related services under the Individuals with Disabilities 
        Education Act, including the use of funds available under part 
        B of such Act to support the participation of such students in 
        the program;
            ``(7) plans for the sustainability of the program after the 
        end of the grant period;
            ``(8) offers an existing meaningful credential to students 
        with intellectual disabilities upon completion of the inclusive 
        program, or, if such credentials are not available, creates a 
        meaningful credential that aligns with existing industry or 
        discipline approved credentials to students with intellectual 
        disabilities upon completion of the program; and
            ``(9) provides for the collection and transmission of data 
        in accordance with subsection (e).
    ``(e) Data Collection and Transition.--
            ``(1) In general.--An institution or consortium receiving a 
        grant under this section shall collect, and transmit to the 
        coordinating center on an annual basis and for each student who 
        is enrolled in the program, student-level information related 
        to the experiences and outcomes of students who participate in 
        the inclusive higher education program for students with 
        intellectual disabilities.
            ``(2) Longitudinal data.--Each grantee shall collect 
        longitudinal outcome data from former students who participated 
        in the program and transmit such data to the coordinating 
        center. Such longitudinal data shall be collected for every 
        student each year for 5 years after the student graduates from, 
        or otherwise exits, the program.
            ``(3) Data to be collected.--The program-level information 
        and data and student-level information and data to be collected 
        under this subsection shall include--
                    ``(A) the number and type of postsecondary 
                education courses taken and completed by the student;
                    ``(B) academic outcomes;
                    ``(C) competitive, integrated employment outcomes;
                    ``(D) independent living outcomes; and
                    ``(E) social outcomes.
    ``(f) Matching Requirement.--An institution of higher education (or 
consortium) that receives a grant under this section shall provide 
matching funds toward the costs of the inclusive higher education 
program for students with intellectual disabilities carried out under 
the grant. Such matching funds may be provided in cash or in-kind, and 
shall be in an amount of not less than 25 percent of the amount of such 
costs.
    ``(g) Report.--Not later than 5 years after the date of the first 
grant awarded under this section, the Secretary shall prepare and 
disseminate a report to the authorizing committees and to the public 
that--
            ``(1) reviews the activities of the inclusive higher 
        education programs for students with intellectual disabilities 
        funded under this section; and
            ``(2) provides guidance and recommendations on how 
        effective programs can be replicated.
    ``(h) Rule of Construction.--Nothing in this subpart shall be 
construed to reduce or expand--
            ``(1) the obligation of a State or local educational agency 
        to provide a free appropriate public education, as defined in 
        section 602 of the Individuals with Disabilities Education Act; 
        or
            ``(2) eligibility requirements under any Federal, State, or 
        local disability law, including the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12101 et seq.), the Rehabilitation Act 
        of 1973 (29 U.S.C. 701 et seq.), or the Developmental 
        Disabilities Assistance and Bill of Rights Act of 2000 (42 
        U.S.C. 15001 et seq.).
    ``(i) Authorization of Appropriations and Reservation.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subpart such 
        sums as may be necessary for fiscal year 2015 and each of the 5 
        succeeding fiscal years.
            ``(2) Reservation of funds.--For any fiscal year for which 
        appropriations are made for this subpart, the Secretary shall 
        reserve funds to enter into a cooperative agreement to 
        establish the coordinating center under section 913(b), in an 
        amount that is not less than $1,000,000. Not less than 40 
        percent of this sum shall be used for the administration of 
        continued collection of data from inclusive higher education 
        programs for students with intellectual disabilities grantees, 
        and the dissemination efforts of such grantees, from earlier 
        grant cycles.

``SEC. 913. COORDINATING CENTER FOR THE INCLUSIVE HIGHER EDUCATION 
              PROGRAMS FOR STUDENTS WITH INTELLECTUAL DISABILITIES.

    ``(a) Definition of Eligible Entity.--In this subsection, the term 
`eligible entity' means an entity, or a partnership of entities, that 
has demonstrated expertise in--
            ``(1) higher education;
            ``(2) the education of students with intellectual 
        disabilities;
            ``(3) the development of inclusive higher education 
        programs for students with intellectual disabilities; and
            ``(4) evaluation and technical assistance.
    ``(b) In General.--From amounts appropriated under section 
912(i)(2), the Secretary shall enter into a cooperative agreement with 
an eligible entity (determined on a competitive basis) for the purpose 
of establishing a coordinating center for institutions of higher 
education that offer inclusive higher education programs for students 
with intellectual disabilities (referred to in this section as 
`inclusive higher education programs'). The coordinating center shall 
carry out the activities described in subsection (e) and shall 
provide--
            ``(1) recommendations related to the development of 
        standards for inclusive higher education programs;
            ``(2) technical assistance for such programs; and
            ``(3) evaluations for such programs, including systematic 
        collection of data on the experiences and outcomes of 
        individuals with intellectual disabilities.
    ``(c) Administration.--The program under this section shall be 
administered by the Office of Postsecondary Education, in collaboration 
with the Office of Special Education and Rehabilitative Services.
    ``(d) Duration.--The Secretary shall enter into a cooperative 
agreement, as described in subsection (b) for a period of 5 years.
    ``(e) Coordinating Center Activities.--The coordinating center 
established under subsection (b) shall carry out the following 
activities:
            ``(1) Evaluating participant progress by creating and 
        maintaining a database of student-level information and data 
        related to the experiences and outcomes of youth who 
        participate in each inclusive higher education program that 
        receives a grant under this subpart. The program and student-
        level information and data that the coordinating center will 
        collect and maintain in the database shall include the 
        information described in section 912(e)(3).
            ``(2) Creating and maintaining a mechanism for continuing 
        to collect outcome information from students who participated 
        in inclusive higher education programs that were developed in 
        previous grant award cycles.
            ``(3) Creating and maintaining a mechanism for 
        collaborating with highly integrated, inclusive higher 
        education programs from earlier grant cycles, with the purpose 
        of disseminating and publicizing best practices for 
        implementing such programs.
            ``(4) Serving as the technical assistance entity for all 
        inclusive higher education programs for students with 
        intellectual disabilities, including by providing technical 
        assistance regarding the development, evaluation, and 
        continuous improvement of such programs.
            ``(5) Developing an evaluation protocol for inclusive 
        higher education programs that includes qualitative and 
        quantitative methodologies for measuring student outcomes and 
        program strengths in the areas of--
                    ``(A) inclusive academics;
                    ``(B) socialization;
                    ``(C) independent living; and
                    ``(D) the achievement of competitive, integrated 
                employment.
            ``(6) Assisting recipients of a grant under this subpart in 
        efforts to consider how to ensure their meaningful credentials 
        align with existing approved credentials and to seek 
        institution of higher education approval for any newly 
        developed credentials.
            ``(7) Developing recommendations for the necessary 
        components of such programs, such as--
                    ``(A) the development of academic, vocational, 
                social, and independent living skills;
                    ``(B) program administration and evaluation;
                    ``(C) student eligibility; and
                    ``(D) issues regarding the equivalency of a 
                student's participation in such programs to semester, 
                trimester, quarter, credit, or clock hours at an 
                institution of higher education, as the case may be.
            ``(8) Analyzing possible funding streams for inclusive 
        higher education programs and providing recommendations 
        regarding those funding streams.
            ``(9) Developing model memoranda of agreement for use 
        between or among institutions of higher education and State and 
        local agencies providing funding for such programs.
            ``(10) Developing mechanisms for regular communication, 
        outreach, and dissemination of information about inclusive 
        higher education programs receiving a grant under this subpart 
        between or among such programs and to families and prospective 
        students who may wish to participate in such programs.
            ``(11) Hosting a meeting of all grant recipients not less 
        often than once each year.
            ``(12) Convening a workgroup to--
                    ``(A) develop and recommend model criteria, 
                standards, and components of such programs, that are 
                appropriate for the development of accreditation 
                standards, that shall include--
                            ``(i) an expert in higher education;
                            ``(ii) an expert in special education;
                            ``(iii) a disability organization that 
                        represents students with intellectual 
                        disabilities;
                            ``(iv) a representative from the National 
                        Advisory Committee on Institutional Quality and 
                        Integrity; and
                            ``(v) a representative of a regional or 
                        national accreditation agency or association; 
                        and
                    ``(B) oversee the coordinating center staff in 
                field testing such model criteria, standards, and 
                components.
    ``(f) Report.--Not later than 2 years after the date of enactment 
of the Higher Education Affordability Act, the coordinating center 
shall report to the Secretary, the authorizing committees, and the 
National Advisory Committee on Institutional Quality and Integrity on 
the recommendations of the workgroup described in subsection (e)(12).

    ``Subpart 2--Transition Programs for Students Who Are Deaf-Blind

``SEC. 921. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--It is the purpose of this subpart to support model 
demonstration programs that promote the successful transition of 
students who are deaf-blind into higher education and employment 
outcomes in integrated, competitive settings at the levels expected 
given their postsecondary education.
    ``(b) Definitions.--In this subpart:
            ``(1) Comprehensive transition and postsecondary program 
        for students who are deaf-blind.--The term `comprehensive 
        transition and postsecondary program for students who are deaf-
        blind' means a degree, certificate, or nondegree program of 
        postsecondary education that--
                    ``(A) is offered by an institution of higher 
                education;
                    ``(B) is designed to support students who are deaf-
                blind and who are seeking to continue academic, career 
                and technical, and independent living instruction at an 
                institution of higher education in order to prepare for 
                competitive integrated employment;
                    ``(C) includes an advising and curriculum 
                structure;
                    ``(D) requires students who are deaf-blind to 
                participate in internships or work-based training in 
                competitive, integrated workplace settings with 
                nondisabled individuals; and
                    ``(E) requires students who are deaf-blind to 
                participate in the program on not less than a half-time 
                basis, as determined by the institution, with such 
                participation focusing on academic components and 
                occurring through 1 or more of the following 
                activities:
                            ``(i) Regular enrollment in credit-bearing 
                        courses with nondisabled students offered by 
                        the institution.
                            ``(ii) Auditing or participating in courses 
                        with nondisabled students offered by the 
                        institution for which the student does not 
                        receive regular academic credit.
                            ``(iii) Enrollment in noncredit-bearing, 
                        nondegree courses with nondisabled students.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a).
            ``(3) Student who is deaf-blind.--The term `student who is 
        deaf-blind' means a student--
                    ``(A)(i) who has a central visual acuity of 20/200 
                or less in the better eye with corrective lenses, or a 
                field defect such that the peripheral diameter of 
                visual field subtends an angular distance no greater 
                than 20 degrees, or a progressive visual loss having a 
                prognosis leading to one or both these conditions;
                    ``(ii) who has a chronic hearing impairment so 
                severe that most speech cannot be understood with 
                optimum amplification, or a progressive hearing loss 
                having a prognosis leading to this condition; and
                    ``(iii) for whom the combination of impairments 
                described in clauses (i) and (ii) cause extreme 
                difficulty in attaining independence in daily life 
                activities, achieving psychosocial adjustment, or 
                obtaining a vocation; or
                    ``(B) who despite the inability to be measured 
                accurately for hearing and vision loss due to cognitive 
                or behavioral constraints, can be determined through 
                functional and performance assessments to have severe 
                hearing and visual disabilities that cause extreme 
                difficulty in attaining independence in daily life 
                activities, achieving psychosocial adjustment, or 
                obtaining a vocation.

``SEC. 922. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY PROGRAMS 
              FOR STUDENTS WHO ARE DEAF-BLIND.

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts appropriated under section 
        951 and not reserved under section 923(c), the Secretary shall 
        annually award grants, on a competitive basis, to institutions 
        of higher education, or consortia of institutions of higher 
        education, to enable the institutions or consortia to create or 
        expand high quality, inclusive model comprehensive transition 
        and postsecondary programs for students who are deaf-blind. The 
        Secretary shall award grants under this section in a manner 
        that ensures that new 5-year grants are awarded each fiscal 
        year.
            ``(2) Administration.--The program under this section shall 
        be administered by the Office of Postsecondary Education, in 
        collaboration with the Office of Special Education and 
        Rehabilitative Services.
            ``(3) Duration of grants.--A grant under this section shall 
        be awarded for a period of 5 years. An institution of higher 
        education (or a consortium of such institutions) is eligible 
        for only one 5-year grant under this program.
    ``(b) Application.--An institution of higher education (or a 
consortium of such institutions) desiring a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may require. 
Such information shall include a demonstration of how the institution 
or consortium intends to sustain the program after the end of the grant 
period, including an identification of other sources of funds for the 
program.
    ``(c) Award Basis.--In awarding grants under this section, the 
Secretary shall--
            ``(1) provide for an equitable geographic distribution of 
        such grants;
            ``(2) provide for an equitable distribution of such grants 
        between 4-year degree-granting and 2-year degree-granting 
        institutions of higher education;
            ``(3) provide grant funds for model comprehensive 
        transition and postsecondary programs for students who are 
        deaf-blind that will serve areas that are underserved by 
        programs of this type; and
            ``(4) give preference to applications that agree to 
        incorporate, into the model comprehensive transition and 
        postsecondary program for students who are deaf-blind carried 
        out under the grant, 1 or more of the following elements:
                    ``(A) The formation of a partnership with any 
                relevant agency serving students who are deaf-blind, 
                such as a vocational rehabilitation agency.
                    ``(B) In the case of an institution of higher 
                education that provides institutionally owned or 
                operated housing for students attending the 
                institution, the integration of students who are deaf-
                blind into the housing offered to nondisabled students.
                    ``(C) The involvement of students attending the 
                institution of higher education who are studying 
                special education, general education, vocational 
                rehabilitation, assistive technology, or related fields 
                in the model program.
    ``(d) Use of Funds.--An institution of higher education (or 
consortium of such institutions) receiving a grant under this section 
shall use the grant funds to establish a model comprehensive transition 
and postsecondary program for students who are deaf-blind that--
            ``(1) provides individual supports and services for the 
        academic and social inclusion of students who are deaf-blind in 
        academic courses, extracurricular activities, and other aspects 
        of the institution of higher education's regular postsecondary 
        program;
            ``(2) with respect to the students who are deaf-blind and 
        who are participating in the model program, provides a focus 
        on--
                    ``(A) academic enrichment;
                    ``(B) integrated socialization with nondisabled 
                students;
                    ``(C) independent living skills, including self-
                advocacy skills; and
                    ``(D) integrated work experiences and career skills 
                that lead to competitive integrated employment;
            ``(3) provides integrated individual-centered planning in 
        the development of the course of study for each student who is 
        deaf-blind participating in the model program;
            ``(4) participates with the coordinating center established 
        under section 923 in the evaluation of the model program, 
        including regular submission of data on the experiences and 
        outcomes of individual students participating in the program;
            ``(5) partners with 1 or more local educational agencies to 
        support students who are deaf-blind participating in the model 
        program who are still eligible for special education and 
        related services under the Individuals with Disabilities 
        Education Act, including the use of funds available under part 
        B of such Act to support the participation of such students in 
        the model program;
            ``(6) plans for the sustainability of the model program 
        after the end of the grant period;
            ``(7) creates and offers a meaningful credential for 
        students who are deaf-blind upon the completion of the model 
        program; and
            ``(8) provides for the collection and transmission of data 
        in accordance with subsection (e).
    ``(e) Data Collection.--
            ``(1) In general.--An institution of higher education (or 
        consortium of such institutions) receiving a grant under this 
        section shall collect and transmit to the coordinating center 
        established under section 923, on an annual basis, student 
        information related to the experiences and outcomes of each 
        student who participates in the comprehensive transition and 
        postsecondary program for students who are deaf-blind.
            ``(2) Longitudinal data.--In addition to the requirements 
        of paragraph (1), each institution of higher education (or 
        consortium of such institutions) shall implement a mechanism by 
        which the institution or consortium will collect longitudinal 
        outcomes data from former students who participate in the 
        comprehensive transition and postsecondary program supported 
        under this section, and transmit that data to the coordinating 
        center established under section 923. Such longitudinal data 
        shall be collected for every student for the 5 years after the 
        student graduates from, or otherwise exits, the program.
            ``(3) Data to be collected.--The student information to be 
        collected and transmitted under this subsection shall include--
                    ``(A) the number and type of postsecondary 
                education courses taken and completed by the student;
                    ``(B) academic outcomes;
                    ``(C) competitive, integrated employment outcomes;
                    ``(D) independent living outcomes; and
                    ``(E) social outcomes.
    ``(f) Matching Requirement.--An institution of higher education (or 
consortium of such institutions) that receives a grant under this 
section shall provide matching funds toward the cost of the model 
comprehensive transition and postsecondary program for students who are 
deaf-blind carried out under the grant. Such matching funds may be 
provided in cash or in-kind, and shall be in an amount of not less than 
25 percent of the amount of such costs.
    ``(g) Report.--Not later than 5 years after the date of the first 
grant awarded under this section, the Secretary shall prepare and 
disseminate a report to the authorizing committees and to the public 
that--
            ``(1) reviews the activities of the model comprehensive 
        transition and postsecondary programs for students who are 
        deaf-blind that receive funds under this section; and
            ``(2) provides guidance and recommendations on how 
        effective model programs can be replicated.
    ``(h) Rule of Construction.--Nothing in this section shall be 
construed to reduce or expand--
            ``(1) the obligation of a State or local educational agency 
        to provide a free appropriate public education, as defined in 
        section 602 of the Individuals with Disabilities Education Act; 
        or
            ``(2) eligibility requirements under any Federal, State, or 
        local disability law, including the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12101 et seq.), the Rehabilitation Act 
        of 1973 (29 U.S.C. 701 et seq.), or the Developmental 
        Disabilities Assistance and Bill of Rights Act of 2000 (42 
        U.S.C. 15001 et seq.).

``SEC. 923. COORDINATING CENTER FOR THE MODEL COMPREHENSIVE TRANSITION 
              AND POSTSECONDARY PROGRAMS FOR STUDENTS WHO ARE DEAF-
              BLIND.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means an entity, or a partnership of entities, that 
has demonstrated expertise in--
            ``(1) higher education;
            ``(2) the education of students who are deaf-blind;
            ``(3) the development of comprehensive transition and 
        postsecondary programs for students who are deaf-blind; and
            ``(4) evaluation and technical assistance.
    ``(b) In General.--From amounts appropriated to carry out this 
section that are reserved under subsection (c), the Secretary shall 
enter into a cooperative agreement, on a competitive basis, with an 
eligible entity for the purpose of establishing a coordinating center 
for institutions of higher education that offer inclusive comprehensive 
transition and postsecondary programs for students who are deaf-blind 
(referred to in this section as a `coordinating center'). The 
coordinating center shall carry out the activities described in 
subsection (f) and shall provide--
            ``(1) recommendations related to the development of 
        standards for such programs;
            ``(2) technical assistance for such programs; and
            ``(3) evaluations for such programs, including systematic 
        collection of data on the experiences and outcomes of 
        individuals who are deaf-blind.
    ``(c) Reservation of Funds.--For any fiscal year for which 
appropriations are made for this subpart in an amount greater than 
$10,000,000, the Secretary shall reserve 4 percent of such funds to 
carry out this section. For any fiscal year for which appropriations 
are made for this subpart in an amount that is equal to or less than 
$10,000,000, the Secretary shall reserve not less than $400,000 to 
carry out this section. Not less than 40 percent of the amount reserved 
under this subsection shall be used for the administration of continued 
collection of data and dissemination of best practices, as described in 
paragraphs (2) and (3) of subsection (f).
    ``(d) Administration.--The program under this section shall be 
administered by the Office of Postsecondary Education, in collaboration 
with the Office of Special Education and Rehabilitative Services.
    ``(e) Duration.--A cooperative agreement under this subsection 
shall be for a period of 5 years.
    ``(f) Requirements of Cooperative Agreement.--The coordinating 
center established under subsection (b) shall carry out the following 
activities:
            ``(1) Evaluating student progress by creating and 
        maintaining a database of student-level information related to 
        the experiences and outcomes of youth students who participate 
        in each comprehensive transition and postsecondary program for 
        students who are deaf-blind. The student-level information and 
        data that the coordinating center will collect and maintain in 
        the database shall include the information described in section 
        922(e)(3).
            ``(2) Creating and maintaining a mechanism for continuing 
        to collect outcomes information from students participating in 
        comprehensive programs that were developed in previous cycles 
        of the program.
            ``(3) Creating and maintaining a mechanism for 
        collaborating with highly integrated comprehensive programs 
        with the purpose of disseminating and publicizing best 
        practices for implementing comprehensive transition and 
        postsecondary programs for students who are deaf-blind.
            ``(4) Serving as the technical assistance entity for all 
        comprehensive transition and postsecondary programs for 
        students who are deaf-blind, including by providing technical 
        assistance regarding the development, evaluation, and 
        continuous improvement of such comprehensive programs.
            ``(5) Developing an evaluation protocol for such programs 
        that includes qualitative and quantitative methodologies for 
        measuring student outcomes and program strengths in the areas 
        of--
                    ``(A) academic enrichment;
                    ``(B) socialization;
                    ``(C) independent living, and
                    ``(D) the attainment of competitive or supported 
                employment by students who participate in the program.
            ``(6) Assisting recipients of grants under this subpart in 
        efforts to award a meaningful credential to students who are 
        deaf-blind upon the completion of a comprehensive program, 
        which credential shall take into consideration unique State 
        factors.
            ``(7) Developing recommendations for the necessary 
        components of such programs, such as--
                    ``(A) development of academic, career and 
                technical, social, and independent living skills;
                    ``(B) program administration and evaluation;
                    ``(C) student eligibility; and
                    ``(D) issues regarding the equivalency of a 
                student's participation in such programs to semester, 
                trimester, quarter, credit, or clock hours at an 
                institution of higher education, as the case may be.
            ``(8) Analyzing possible funding streams for such programs 
        and providing recommendations regarding the funding streams.
            ``(9) Developing model memoranda of agreement for use 
        between or among institutions of higher education and State and 
        local agencies providing funding for such programs.
            ``(10) Developing mechanisms for regular communication, 
        outreach, and dissemination of information about comprehensive 
        transition and postsecondary programs for students who are 
        deaf-blind that receive funds under section 922 between or 
        among such programs and to families and prospective students.
            ``(11) Hosting a meeting of all recipients of grants under 
        section 922 not less often than once each year.
            ``(12) Convening a workgroup to develop and recommend model 
        criteria, standards, and components of such programs that are 
        appropriate for the development of accreditation standards. The 
        workgroup shall include--
                    ``(A) an expert in higher education;
                    ``(B) an expert in special education;
                    ``(C) a disability organization that represents 
                students who are deaf-blind;
                    ``(D) a representative from the National Advisory 
                Committee on Institutional Quality and Integrity; and
                    ``(E) a representative of a regional or national 
                accreditation agency or association.
    ``(g) Report.--Not later than 2 years after the date of enactment 
of the Higher Education Affordability Act, the coordinating center 
shall report to the Secretary, the authorizing committees, and the 
National Advisory Committee on Institutional Quality and Integrity on 
the recommendations of the workgroup described in subsection (f)(12).

``PART C--PROVIDING ACCESSIBLE INSTRUCTIONAL MATERIALS TO STUDENTS WITH 
                    DISABILITIES ON COLLEGE CAMPUSES

``SEC. 931. GUIDELINES FOR ACCESSIBLE INSTRUCTIONAL MATERIALS.

    ``(a) Purpose.--The purpose of this section is to authorize the 
Architectural and Transportation Barriers Compliance Board (referred to 
in this section as the `Access Board') to establish guidelines for 
accessible instructional materials that will be used in postsecondary 
education settings.
    ``(b) In General.--Not later than 18 months after the date of 
enactment of Higher Education Affordability Act, the Access Board 
(established pursuant to section 502 of the Rehabilitation Act of 1973 
(29 U.S.C. 792)) shall establish guidelines for the accessibility of 
all instructional materials for students who are attending institutions 
of higher education that receive funds under title IV, including 
electronic instructional materials and related information 
technologies. Such guidelines shall--
            ``(1) include performance criteria to ensure that such 
        materials and technologies are accessible to students with 
        disabilities, as defined in section 3 of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12102); and
            ``(2) if applicable, be consistent with the standards for 
        technical and functional performance criteria issued pursuant 
        to section 508(a)(2)(A)(ii) of the Rehabilitation Act of 1973 
        (29 U.S.C. 794d(a)(2)(A)(ii)).
    ``(c) Harmonization With National and International Standards.--The 
Access Board shall, to the extent practicable, ensure that the 
guidelines established under subsection (b) are consistent with 
national and international accessibility standards for electronic 
instructional materials and related information technologies.
    ``(d) Review and Amendment.--Not later than 3 years after the 
effective date of the guidelines described in subsection (b), and every 
3 years thereafter, the Access Board shall review and, as appropriate, 
amend such guidelines to reflect technological advances or changes in 
instructional materials and related information technologies.
    ``(e) Safe Harbor Protections.--An institution of higher education 
that uses instructional materials that comply with the accessibility 
guidelines described in subsection (b) shall be deemed to be in 
compliance with the non-discrimination provisions in section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and III of the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et seq., 42 
U.S.C. 12181 et seq.) with respect to the use of such materials.
    ``(f) Noncompliant Instructional Materials.--Nothing in this 
section shall be construed to require an institution of higher 
education to use instructional materials that conform to the 
accessibility guidelines described in subsection (b). If an institution 
of higher education chooses not to provide materials that conform to 
the accessibility guidelines described in subsection (b), such 
institution of higher education shall provide an assurance to the 
Secretary that the institution of higher education will provide 
instructional materials in a manner that is equally effective, 
integrated, and timely, and provides for a substantially equivalent 
ease of use, as compared to the manner in which such materials or 
technologies are provided to non-disabled students.

``SEC. 932. DEMONSTRATION PROGRAM FOR IMPROVED POSTSECONDARY 
              INSTRUCTIONAL MATERIALS IN SPECIALIZED FORMATS.

    ``(a) Purpose.--It is the purpose of this section to support model 
demonstration programs for the purpose of--
            ``(1) encouraging the development of systems to improve the 
        quality of postsecondary instructional materials in specialized 
        formats;
            ``(2) encouraging the timely delivery of such materials to 
        postsecondary students with print disabilities; and
            ``(3) improving efficiency and reducing duplicative efforts 
        across multiple institutions of higher education relating to 
        the development and delivery of such materials.
    ``(b) Definition of Eligible Partnership.--In this section, the 
term `eligible partnership' means a partnership that--
            ``(1) shall include--
                    ``(A) an institution of higher education with 
                demonstrated expertise in meeting the needs of students 
                with print disabilities, including the retention of 
                such students in, and such students' completion of, 
                postsecondary education; and
                    ``(B) a public or private entity, other than an 
                institution of higher education, with--
                            ``(i) demonstrated expertise in developing 
                        accessible instructional materials in 
                        specialized formats for postsecondary students 
                        with print disabilities; and
                            ``(ii) the technical development expertise 
                        necessary for the efficient dissemination of 
                        such materials, including procedures to protect 
                        against copyright infringement with respect to 
                        the creation, use, and distribution of 
                        instructional materials in specialized formats; 
                        and
            ``(2) may include representatives of the publishing 
        industry.
    ``(c) Program Authorized.--From amounts appropriated to carry out 
this section, the Secretary shall award grants or contracts, on a 
competitive basis, to not less than 1 eligible partnership to enable 
the eligible partnership to carry out the activities described in 
subsection (f) and, as applicable, subsection (g).
    ``(d) Application.--An eligible partnership that desires a grant or 
contract under this section shall submit an application at such time, 
in such manner, and in such format as the Secretary may prescribe. The 
application shall include information on how the eligible partnership 
will implement activities under subsection (f) and, as applicable, 
subsection (g).
    ``(e) Priority.--In awarding grants or contracts under this 
section, the Secretary shall give priority to any applications that 
include a plan for the development and implementation of the procedures 
and approaches described in paragraphs (2) and (3) of subsection (g).
    ``(f) Required Activities.--An eligible partnership that receives a 
grant or contract under this section shall use the grant or contract 
funds to carry out the following:
            ``(1) Supporting the development and implementation of the 
        following:
                    ``(A) Processes and systems to help identify, and 
                verify the eligibility of, postsecondary students with 
                print disabilities in need of instructional materials 
                in specialized formats.
                    ``(B) Procedures and systems to facilitate and 
                simplify the methods through which eligible students 
                described in subparagraph (A) may request accessible 
                instructional materials in specialized formats, which 
                may include a single point-of-entry system.
                    ``(C) Procedures and systems to coordinate among 
                institutions of higher education, publishers of 
                instructional materials, and entities that produce 
                materials in specialized formats, to efficiently 
                facilitate--
                            ``(i) requests for such materials;
                            ``(ii) the responses to such requests; and
                            ``(iii) the delivery of such materials.
                    ``(D) Delivery systems that will ensure the timely 
                provision of instructional materials in specialized 
                formats to eligible students, which may include 
                electronic file distribution.
                    ``(E) Systems to reduce duplicative conversions and 
                improve sharing of the same instructional materials in 
                specialized formats for multiple eligible students at 
                multiple institutions of higher education.
                    ``(F) Procedures to protect against copyright 
                infringement with respect to the development, use, and 
                distribution of instructional materials in specialized 
                formats while maintaining accessibility for eligible 
                students, which may include digital technologies such 
                as watermarking, fingerprinting, and other emerging 
                approaches.
                    ``(G) Awareness, outreach, and training activities 
                for faculty, staff, and students related to the 
                acquisition and dissemination of instructional 
                materials in specialized formats and instructional 
                materials utilizing universal design.
            ``(2) Providing recommendations on how effective procedures 
        and systems described in paragraph (1) may be disseminated and 
        implemented on a national basis.
    ``(g) Authorized Approaches.--An eligible partnership that receives 
a grant or contract under this section may use the grant or contract 
funds to support the development and implementation of the following:
            ``(1) Approaches for the provision of instructional 
        materials in specialized formats limited to instructional 
        materials used in smaller categories of postsecondary courses, 
        such as introductory, first-year courses, and second-year 
        courses.
            ``(2) Approaches supporting a unified search for 
        instructional materials in specialized formats across multiple 
        databases or lists of available materials.
            ``(3) Market-based approaches for making instructional 
        materials in specialized formats directly available to eligible 
        students at prices comparable to standard instructional 
        materials.
    ``(h) Report.--Not later than 3 years after the date that the first 
grant or contract is awarded under this section, the Secretary shall 
submit to the authorizing committees a report that includes--
            ``(1) the number of grants and contracts and the amount of 
        funds distributed under this section;
            ``(2) a summary of the purposes for which the grants and 
        contracts were provided and an evaluation of the progress made 
        under such grants and contracts;
            ``(3) a summary of the activities implemented under 
        subsection (f) and, as applicable, subsection (g), including 
        data on the number of postsecondary students with print 
        disabilities served and the number of instructional material 
        requests executed and delivered in specialized formats; and
            ``(4) an evaluation of the effectiveness of programs funded 
        under this section.
    ``(i) Requirement for Producers of Instructional Materials.--
Producers of instructional materials for the postsecondary education 
market that are involved in or affecting interstate commerce, produce 
such materials for institutions of higher education that receive 
Federal funds, and incorporate synchronized audio and visual formats 
(including DVDs, CDs, video, web video, and similar formats) shall 
provide closed captions or subtitles.

     ``PART D--COMMISSION ON SERVING AND SUPPORTING STUDENTS WITH 
      PSYCHIATRIC DISABILITIES IN INSTITUTIONS OF HIGHER EDUCATION

``SEC. 941. COMMISSION ON SERVING AND SUPPORTING STUDENTS WITH 
              PSYCHIATRIC DISABILITIES IN INSTITUTIONS OF HIGHER 
              EDUCATION.

    ``(a) Establishment of Advisory Commission on Serving and 
Supporting Students With Psychiatric Disabilities on College 
Campuses.--
            ``(1) In general.--The Secretary shall establish a 
        commission to be known as the Advisory Commission on Serving 
        and Supporting Students with Psychiatric Disabilities in 
        Institutions of Higher Education (referred to in this section 
        as the `Commission').
            ``(2) Membership.--
                    ``(A) Total number of members.--The Commission 
                shall include not more than 15 members, who shall be 
                appointed by the Secretary in accordance with 
                subparagraphs (B) and (C).
                    ``(B) Members of the commission.--The Commission 
                members shall include 1 representative from each of the 
                following categories:
                            ``(i) The Office of Postsecondary Education 
                        of the Department.
                            ``(ii) The Office of Special Education and 
                        Rehabilitative Services of the Department.
                            ``(iii) The Office for Civil Rights of the 
                        Department.
                            ``(iv) The National Council on Disability.
                            ``(v) The Association on Higher Education 
                        and Disability, or a similar organization, as 
                        determined by the Secretary.
                            ``(vi) The Protection and Advocacy for 
                        Individuals with Mental Illness program of the 
                        National Disability Rights Network, or a 
                        similar program, as determined by the 
                        Secretary.
                            ``(vii) A national organization 
                        representing postsecondary education students 
                        with psychiatric disabilities.
                    ``(C) Additional members of the commission.--The 
                Commission members shall include 4 representatives from 
                each of the following categories:
                            ``(i) Staff from institutions of higher 
                        education with demonstrated experience in 
                        successfully supporting the retention and 
                        graduation of students with psychiatric 
                        disabilities. With respect to the 4 members 
                        appointed under this clause--
                                    ``(I) 1 member shall be a staff 
                                member of a 2-year degree-granting 
                                institution and 1 member shall be a 
                                staff member from a 4-year degree-
                                granting institution; and
                                    ``(II) the 4 members selected shall 
                                represent institutions of differing 
                                sizes.
                            ``(ii) Individuals with psychiatric 
                        disabilities, including not less than 2 
                        currently enrolled postsecondary education 
                        students.
                    ``(D) Timing.--The Secretary shall establish the 
                Commission and appoint the members of the Commission 
                not later than 120 days after the date of enactment of 
                the Higher Education Affordability Act.
            ``(3) Chairperson and vice chairperson.--The Commission 
        shall select a chairperson and vice chairperson from among the 
        members of the Commission.
            ``(4) Meetings.--
                    ``(A) In general.--The Commission shall meet at the 
                call of the Chairperson.
                    ``(B) First meeting.--Not later than 60 days after 
                the appointment of the members of the Commission under 
                paragraph (2), the Commission shall hold the 
                Commission's first meeting.
            ``(5) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number of members may 
        hold hearings.
    ``(b) Duties of the Commission.--
            ``(1) Study.--
                    ``(A) In general.--The Commission shall conduct a 
                comprehensive study to--
                            ``(i) assess the barriers and systemic 
                        issues that may affect, and support- and 
                        service-delivery solutions that may improve, 
                        the rates of retention and graduation for 
                        postsecondary students with psychiatric 
                        disabilities; and
                            ``(ii) make recommendations related to the 
                        development of a comprehensive approach to 
                        improve the opportunities for postsecondary 
                        students with psychiatric disabilities to 
                        receive services and supports that optimize 
                        their rates of retention and graduation.
                    ``(B) Existing information.--To the extent 
                practicable, in carrying out the study under this 
                paragraph, the Commission shall identify and use 
                existing research, recommendations, and information, as 
                of the time of the study.
                    ``(C) Recommendations.--Based on the findings of 
                the study under subparagraph (A), the Commission shall 
                develop recommendations--
                            ``(i) to inform Federal regulations and 
                        legislation regarding the recruitment, 
                        retention, and support of students with 
                        psychiatric disabilities at institutions of 
                        higher education; and
                            ``(ii) to identify best practices for 
                        serving and supporting students with 
                        psychiatric disabilities in postsecondary 
                        settings, and maintaining the privacy 
                        protections provided under the regulations 
                        promulgated under section 264(c) of the Health 
                        Insurance Portability and Accountability Act of 
                        1996 (Public Law 104-191; 110 Stat. 2033) and 
                        section 444 of the General Education Provisions 
                        Act (commonly referred to as the `Family 
                        Educational Rights and Privacy Act of 1974').
            ``(2) Report.--Not later than 1 year after the first 
        meeting of the Commission, the Commission shall submit a report 
        to the Secretary and the authorizing committees describing the 
        findings and recommendations of the study conducted under 
        paragraph (1).
            ``(3) Dissemination of information.--In carrying out the 
        study under paragraph (1), the Commission shall disseminate a 
        final report through--
                    ``(A) the National Technical Assistance Centers 
                established under sections 901 and 902; and
                    ``(B) other means, as determined by the Commission.
    ``(c) Termination of the Commission.--The Commission shall 
terminate on the date that is 90 days after the date on which the 
Commission submits the report under subsection (b)(2) to the Secretary 
and the authorizing committees.

               ``PART E--AUTHORIZATION OF APPROPRIATIONS

``SEC. 951. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to carry out this title such sums as may be 
necessary for fiscal year 2015 and each of the 5 succeeding fiscal 
years.''.

                   TITLE X--AMENDMENTS TO OTHER LAWS

                      PART A--TRUTH IN LENDING ACT

                         Subpart 1--Definitions

SEC. 1010. DEFINITIONS.

    In this part--
            (1) the terms ``alternative repayment arrangement'', 
        ``billing group'', ``postsecondary education loan'', and 
        ``student loan servicer'' have the meanings given those terms 
        in section 188 of the Truth in Lending Act, as added by section 
        1016;
            (2) the term ``appropriate committees of Congress'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (B) the Committee on Health, Education, Labor, and 
                Pensions of the Senate;
                    (C) the Committee on Financial Services of the 
                House of Representatives; and
                    (D) the Committee on Education and the Workforce of 
                the House of Representatives;
            (3) the term ``Bureau'' means the Bureau of Consumer 
        Financial Protection; and
            (4) the term ``private education loan'' has the meaning 
        given that term in section 140(a) of the Truth in Lending Act 
        (15 U.S.C. 1650(a)).

             Subpart 2--Amendments to Truth in Lending Act

SEC. 1011. EXEMPTED TRANSACTIONS.

    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``This title'' and inserting ``(a) In General.--This title''; 
        and
            (2) by adding at the end the following:
    ``(b) Rule of Construction.--Nothing in subsection (a) shall 
prevent or be construed to prevent the provisions of chapter 6 from 
applying to any postsecondary education lender, loan holder, or student 
loan servicer (as those terms are defined in section 188).''.

SEC. 1012. MANDATORY CERTIFICATION.

    (a) Amendments.--Section 128(e) of the Truth in Lending Act (15 
U.S.C. 1638(e)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Institutional certification required.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), before a creditor may issue any funds 
                with respect to an extension of credit described in 
                this subsection, the creditor shall obtain from the 
                relevant institution of higher education at which such 
                loan is to be used for a student, such institution's 
                certification of--
                            ``(i) the enrollment status of the student;
                            ``(ii) the student's cost of attendance at 
                        the institution as determined by the 
                        institution under part F of title IV of the 
                        Higher Education Act of 1965 (20 U.S.C. 1087kk 
                        et seq.); and
                            ``(iii) the difference between--
                                    ``(I) such cost of attendance; and
                                    ``(II) the student's estimated 
                                financial assistance, including 
                                financial assistance received under 
                                title IV of the Higher Education Act of 
                                1965 (20 U.S.C. 1070 et seq.) if the 
                                student pursued such assistance, and 
                                other financial assistance known to the 
                                institution, as applicable.
                    ``(B) Limitation on extension of credit.--A 
                creditor shall not issue funds with respect to an 
                extension of credit described in this subsection in an 
                amount that is greater than the amount described in 
                subparagraph (A)(iii).
                    ``(C) Exception.--Notwithstanding subparagraph (A), 
                a creditor may issue funds with respect to an extension 
                of credit described in this subsection without 
                obtaining from the relevant institution of higher 
                education such institution's certification if such 
                institution fails to provide within 15 business days of 
                the creditor's request for such certification--
                            ``(i) the requested certification;
                            ``(ii) a notification of a refusal to 
                        certify pursuant to section 
                        487(a)(28)(A)(i)(II) of the Higher Education 
                        Act of 1965 (20 U.S.C. 1094(a)(28)(A)(i)(II)); 
                        or
                            ``(iii) notification that the institution 
                        has received the request for certification and 
                        will need additional time to comply with the 
                        certification request.
                    ``(D) Loans disbursed without certification.--If a 
                creditor issues funds without obtaining a 
                certification, as described in subparagraph (C), such 
                creditor shall report the issuance of such funds in a 
                manner determined by the Director of the Bureau.'';
            (2) by redesignating paragraphs (9), (10), and (11) as 
        paragraphs (10), (11), and (12), respectively;
            (3) by inserting after paragraph (8) the following:
            ``(9) Provision of information.--
                    ``(A) Provision of information to students.--
                            ``(i) Loan statement.--A creditor that 
                        issues any funds with respect to an extension 
                        of credit described in this subsection shall 
                        send loan statements, where such loan is to be 
                        used for a student, to borrowers of such funds 
                        not less than once every 3 months during the 
                        time that such student is enrolled at an 
                        institution of higher education.
                            ``(ii) Contents of loan statement.--Each 
                        statement described in clause (i) shall--
                                    ``(I) report the borrower's total 
                                remaining principal balance, including 
                                accrued but unpaid interest and 
                                capitalized interest;
                                    ``(II) report any increases in the 
                                principal balance since the last 
                                statement; and
                                    ``(III) list the current interest 
                                rate for each loan.
                    ``(B) Notification of loans disbursed without 
                certification.--On or before the date a creditor issues 
                any funds with respect to an extension of credit 
                described in this subsection, the creditor shall notify 
                the relevant institution of higher education, in 
                writing, of the amount of the extension of credit and 
                the student on whose behalf credit is extended. The 
                form of such written notification shall be subject to 
                the regulations of the Bureau of Consumer Financial 
                Protection.
                    ``(C) Annual report.--
                            ``(i) In general.--A creditor that offers 
                        to issue funds with respect to an extension of 
                        credit described in this subsection shall 
                        prepare and submit an annual report to the 
                        Bureau of Consumer Financial Protection 
                        containing the required information about 
                        private education loans described in clause 
                        (ii).
                            ``(ii) Information to be included.--Each 
                        annual report required under clause (i) shall 
                        include the following information:
                                    ``(I) The number of borrowers who 
                                request a private education loan who 
                                have not exhausted the financial 
                                assistance available under title IV of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1070 et seq.).
                                    ``(II) The number of borrowers who 
                                request a private education loan above 
                                the cost of attendance.
                                    ``(III) The number of borrowers who 
                                request a private education loan who 
                                have not exhausted their financial 
                                assistance available under title IV of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1070 et seq.) who then after the 
                                institutional certification process 
                                under section 487(a)(28)(A) of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1094(a)(28)(A)) is complete, reduce the 
                                amount of their private education loan.
                                    ``(IV) The number of borrowers who 
                                request a private education loan who 
                                have not exhausted their financial 
                                assistance available under title IV of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1070 et seq.) who then after the 
                                institutional certification process 
                                under section 487(a)(28)(A) of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1094(a)(28)(A)) is complete, do not 
                                take out a private education loan.
                                    ``(V) Any other information the 
                                Bureau of Consumer Financial 
                                Protection, in consultation with the 
                                Secretary of Education, requires.''; 
                                and
            (4) by adding at the end the following:
            ``(13) Private education loan information in the national 
        student loan data system.--
                    ``(A) Information from lender.--Each private 
                educational lender shall submit to the Director of the 
                Bureau and the Secretary of Education for inclusion in 
                the National Student Loan Data System established under 
                section 485B of the Higher Education Act of 1965 (20 
                U.S.C. 1092b) such information as may be determined 
                necessary by the Director and the Secretary under 
                subparagraph (B).
                    ``(B) Promulgation of regulation.--Not later than 1 
                year after the date of enactment of the Higher 
                Education Affordability Act, the Director, in 
                coordination with the Secretary of Education, shall 
                promulgate a regulation regarding the private education 
                loan information required to be submitted under 
                subparagraph (A), including what private education loan 
                information shall be required to be submitted and the 
                method and format for submission.
            ``(14) Additional electronic disclosures.--
                    ``(A) Availability of agreements.--
                            ``(i) In general.--Each private educational 
                        lender shall establish and maintain an Internet 
                        site on which the private educational lender 
                        shall post the written agreement between the 
                        private educational lender and the borrower for 
                        each private education loan account. Each 
                        private educational lender shall also describe 
                        the number of private education loans, along 
                        with the average loan amount at the time of 
                        disbursement, associated with each private 
                        education loan of the borrower.
                            ``(ii) Protection of individual borrower 
                        information.--A private educational lender may 
                        not post individual borrower information on the 
                        Internet site established and maintained under 
                        clause (i).
                    ``(B) Provision of agreements to bureau.--
                            ``(i) In general.--Each private educational 
                        lender shall provide to the Bureau, in 
                        electronic format, the private education loan 
                        agreements that it publishes on the Internet 
                        site of the private educational lender pursuant 
                        to subparagraph (A).
                            ``(ii) Record repository.--The Bureau shall 
                        establish and maintain on the publicly 
                        available Internet site of the Bureau a central 
                        repository of the private education loan 
                        agreements received by the Bureau pursuant to 
                        clause (i), which shall be easily accessible 
                        and retrievable by the public.
                            ``(iii) Protection of individual borrower 
                        information.--The Bureau may not post 
                        individual borrower information on the Internet 
                        site described in clause (ii).
                    ``(C) Exception.--This paragraph does not apply to 
                individually negotiated changes to contractual terms, 
                including individually modified workouts or 
                renegotiations of amounts owed by a borrower under a 
                private educational loan.
                    ``(D) Regulations.--The Bureau may, in consultation 
                with the other Federal banking agencies (as that term 
                is defined in section 603 of the Truth in Lending Act 
                (15 U.S.C. 1681a)), issue regulations to implement this 
                paragraph, including regulations--
                            ``(i) specifying the format in which a 
                        private educational lender shall publish 
                        private education loan agreements on the 
                        Internet site of the private educational 
                        lender; and
                            ``(ii) establishing exceptions to 
                        subparagraphs (A) and (B)(i) in any case in 
                        which the administrative burden outweighs the 
                        benefit of increased transparency, including 
                        when a postsecondary education loan product has 
                        a de minimis number of consumer account 
                        holders.
            ``(15) Predispute agreements and waivers.--
                    ``(A) In general.--A borrower may not waive any 
                right or remedy relating to a private education loan 
                that is available to the borrower against a private 
                educational lender, postsecondary education lender, 
                loan holder, or student loan servicer (as such terms 
                are defined in section 188) before the dispute as to 
                which the right or remedy relates arises. Any such 
                waiver agreed to before, on, or after the date of 
                enactment of the Higher Education Affordability Act 
                shall not be enforceable and shall have no force or 
                effect.
                    ``(B) Predispute arbitration agreements.--An 
                agreement entered before, on, or after the date of 
                enactment of the Higher Education Affordability Act to 
                arbitrate a dispute relating to a private education 
                loan that had not arisen at the time the agreement was 
                entered shall not be enforceable and shall have no 
                force or effect.
            ``(16) Discharge of private education loans in the event of 
        death or disability of the borrower.--Each private education 
        loan shall include terms that provide that the liability to 
        repay the loan shall be cancelled--
                    ``(A) upon the death of the borrower;
                    ``(B) if the borrower becomes permanently and 
                totally disabled, as determined under paragraph (1) or 
                (3) of section 437(a) of the Higher Education Act of 
                1965 (20 U.S.C. 1087(a)) and the regulations 
                promulgated by the Secretary of Education under that 
                section; and
                    ``(C) if the Secretary of Veterans Affairs or the 
                Secretary of Defense determines that the borrower is 
                unemployable due to a service-connected condition or 
                disability, in accordance with the requirements of 
                section 437(a)(2) of that Act and the regulations 
                promulgated by the Secretary of Education under that 
                section.''.
    (b) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Director of the Bureau of Consumer Financial 
Protection shall issue final regulations implementing paragraphs (3) 
and (9) of section 128(e) of the Truth in Lending Act (15 U.S.C. 
1638(e)), as amended by subsection (a). Such regulations shall become 
effective not later than 6 months after their date of issuance.
    (c) Report on Mandatory Certification.--Not later than 2 years 
after the issuance of the regulations required under subsection (b), 
and at any other time determined appropriate by the Director of the 
Bureau of Consumer Financial Protection and the Secretary of Education 
jointly, the Director and the Secretary shall jointly submit to 
Congress a report on the compliance of institutions of higher education 
and private educational lenders with section 128(e)(3) of the Truth in 
Lending Act (15 U.S.C. 1638(e)), as amended by subsection (a), and 
section 487(a)(28) of the Higher Education Act of 1965 (20 U.S.C. 
1094(a)(28)), as amended by section 491(b). Such report shall be based 
on the annual reports submitted under section 128(e)(9) of the Truth in 
Lending Act, as amended by subsection (a), and shall include 
information about the degree to which specific institutions utilize 
certifications in effectively encouraging the exhaustion of Federal 
student loan eligibility and lowering student private education loan 
debt.

SEC. 1013. CIVIL LIABILITY.

    Section 130 of the Truth in Lending Act (15 U.S.C. 1640) is 
amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and any postsecondary education lender, 
                loan holder, or student loan servicer (as such terms 
                are defined in section 188) who fails to comply with 
                any requirement imposed under chapter 6 with respect to 
                any person'' before ``is liable to such person'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``; or (iv)'' and 
                                inserting ``, or (iv)''; and
                                    (II) by inserting ``, or (v) in the 
                                case of a postsecondary education 
                                lender, loan holder, or student loan 
                                servicer (as such terms are defined in 
                                section 188) who fails to comply with 
                                any requirement imposed under chapter 
                                6, not less than $400 or greater than 
                                $4,000'' before the semicolon; and
                            (ii) in subparagraph (B), by inserting ``, 
                        postsecondary education lender, loan holder, or 
                        student loan servicer'' after ``creditor'' each 
                        place it appears; and
                    (C) in the matter following paragraph (4)--
                            (i) in the first sentence--
                                    (I) by inserting ``, postsecondary 
                                education lender, loan holder, or 
                                student loan servicer'' after 
                                ``creditor'' each place it appears; and
                                    (II) by striking ``creditor's 
                                failure'' and inserting ``failure by 
                                the creditor, postsecondary education 
                                lender, loan holder, or student loan 
                                servicer'';
                            (ii) in the fourth sentence, by inserting 
                        ``other than the disclosures required under 
                        section 128(e)(12),'' after ``referred to in 
                        section 128,''; and
                            (iii) in the fifth sentence, by inserting 
                        ``, postsecondary education lender, loan 
                        holder, or student loan servicer'' after 
                        ``creditor'';
            (2) in subsection (c), by striking ``creditor or assignee'' 
        each place it appears and inserting ``creditor, assignee, 
        postsecondary education lender, loan holder, or student loan 
        servicer'';
            (3) in subsection (e), as amended by sections 1416(b) and 
        1422 of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (Public Law 111-203)--
                    (A) in the second sentence, by inserting ``or 
                chapter 6'' after ``section 129, 129B, or 129C''; and
                    (B) in the fourth sentence, by inserting ``or 
                chapter 6'' after ``or 129H''; and
            (4) in subsection (h)--
                    (A) by striking ``creditor or assignee'' and 
                inserting ``creditor, assignee, postsecondary education 
                lender, loan holder, or student loan servicer''; and
                    (B) by striking ``creditor's or assignee's 
                liability'' and inserting ``liability of the creditor, 
                assignee, postsecondary education lender, loan holder, 
                or student loan servicer''.

SEC. 1014. DEFINITION OF PRIVATE EDUCATION LOAN.

    Section 140(a)(7)(A) of the Truth in Lending Act (15 U.S.C. 
1650(a)(7)(A)) is amended--
            (1) in clause (i), by striking ``and'' after the semicolon;
            (2) by redesignating clause (ii) as clause (iii); and
            (3) by adding after clause (i) the following:
                            ``(ii) is not made, insured, or guaranteed 
                        under title VII or title VIII of the Public 
                        Health Service Act (42 U.S.C. 292 et seq. and 
                        296 et seq.); and''.

SEC. 1015. REVENUE SHARING AND DISCLOSURE OF AFFILIATION.

    Chapter 2 of title I of the Truth in Lending Act (15 U.S.C. 1631 et 
seq.) is amended by adding at the end the following:

``SEC. 140B. PREVENTING UNFAIR AND DECEPTIVE MARKETING OF CONSUMER 
              FINANCIAL PRODUCTS AND SERVICES TO STUDENTS OF 
              INSTITUTIONS OF HIGHER EDUCATION.

    ``(a) Definitions.--In this section:
            ``(1) Affiliate.--The term `affiliate' means any person 
        that controls, is controlled by, or is under common control 
        with another person.
            ``(2) Affiliated.--
                    ``(A) In general.--The term `affiliated', when used 
                with respect to a consumer financial product or service 
                and an institution of higher education, means an 
                association between such institution and product or 
                service resulting from--
                            ``(i) the name, emblem, mascot, or logo of 
                        the institution being used with respect to such 
                        product or service; or
                            ``(ii) some other word, picture, or symbol 
                        readily identified with the institution in the 
                        marketing of the consumer financial product or 
                        service in any way that implies that the 
                        institution endorses the consumer financial 
                        product or service.
                    ``(B) Rule of construction.--Nothing in 
                subparagraph (A) shall be construed to deem an 
                association between an institution of higher education 
                and a consumer financial product or service to be 
                affiliated if such association is solely based on an 
                advertisement by a financial institution that is 
                delivered to a wide and general audience consisting of 
                more than enrolled students at the institution of 
                higher education.
            ``(3) Consumer financial product or service.--The term 
        `consumer financial product or service' has the meaning given 
        the term in section 1002 of the Consumer Financial Protection 
        Act of 2010 (12 U.S.C. 5481).
            ``(4) Financial institution.--The term `financial 
        institution' means--
                    ``(A) any person that engages in offering or 
                providing a consumer financial product or service; and
                    ``(B) any affiliate of such person described in 
                subparagraph (A) if such affiliate acts as a service 
                provider to such person.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            ``(6) Person.--The term `person' means an individual, 
        partnership, company, corporation, association (incorporated or 
        unincorporated), trust, estate, cooperative organization, or 
        other entity.
            ``(7) Revenue-sharing arrangement.--The term `revenue-
        sharing arrangement'--
                    ``(A) means an arrangement between an institution 
                of higher education and a financial institution under 
                which--
                            ``(i) a financial institution provides or 
                        issues a consumer financial product or service 
                        to college students attending the institution 
                        of higher education;
                            ``(ii) the institution of higher education 
                        recommends, promotes, sponsors, or otherwise 
                        endorses the financial institution, or the 
                        consumer financial products or services offered 
                        by the financial institution; and
                            ``(iii) the financial institution pays a 
                        fee or provides other material benefits, 
                        including revenue or profit sharing, to the 
                        institution of higher education, or to an 
                        officer, employee, or agent of the institution 
                        of higher education, in connection with the 
                        consumer financial products and services 
                        provided to college students attending the 
                        institution of higher education; and
                    ``(B) does not include an arrangement solely based 
                on a financial institution paying a fair market price 
                to an institution of higher education for the 
                institution of higher education to advertise or market 
                the financial institution to the general public.
            ``(8) Service provider.--The term `service provider'--
                    ``(A) means any person that provides a material 
                service to another person in connection with the 
                offering or provision by such other person of a 
                consumer financial product or service, including a 
                person that--
                            ``(i) participates in designing, operating, 
                        or maintaining the consumer financial product 
                        or service; or
                            ``(ii) processes transactions relating to 
                        the consumer financial product or service 
                        (other than unknowingly or incidentally 
                        transmitting or processing financial data in a 
                        manner that such data is undifferentiated from 
                        other types of data of the same form as the 
                        person transmits or processes); and
                    ``(B) does not include a person solely by virtue of 
                such person offering or providing to another person--
                            ``(i) a support service of a type provided 
                        to businesses generally or a similar 
                        ministerial service; or
                            ``(ii) time or space for an advertisement 
                        for a consumer financial product or service 
                        through print, newspaper, or electronic media.
    ``(b) Disclosure of Affiliation.--
            ``(1) Reports by financial institutions.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of the Higher Education 
                Affordability Act, and annually thereafter, each 
                financial institution shall submit a report to the 
                Bureau containing the terms and conditions of all 
                business, marketing, and promotional agreements that 
                the financial institution has with any institution of 
                higher education, or an alumni organization or 
                foundation that is an affiliate of or related to an 
                institution of higher education, relating to any 
                consumer financial product or service offered to 
                college students at institutions of higher education.
                    ``(B) Details of report.--The information required 
                to be reported under subparagraph (A) includes--
                            ``(i) any memorandum of understanding 
                        between or among the financial institution and 
                        an institution of higher education, alumni 
                        association, or foundation that directly or 
                        indirectly relates to any aspect of an 
                        agreement referred to in subparagraph (A) or 
                        controls or directs any obligations or 
                        distribution of benefits between or among the 
                        entities; and
                            ``(ii) the number and dollar amount 
                        outstanding of consumer financial products or 
                        services accounts covered by any such agreement 
                        that were originated during the period covered 
                        by the report, and the total number and dollar 
                        amount of consumer financial products or 
                        services accounts covered by the agreement that 
                        were outstanding at the end of such period.
                    ``(C) Aggregation by institution.--The information 
                required to be reported under subparagraph (A) shall be 
                aggregated with respect to each institution of higher 
                education or alumni organization or foundation that is 
                an affiliate of or related to the institution of higher 
                education.
            ``(2) Reports by bureau.--The Bureau shall submit to 
        Congress, and make available to the public, an annual report 
        that lists the information submitted to the Bureau under 
        paragraph (1).
            ``(3) Electronic disclosures.--
                    ``(A) Posting agreements.--Each financial 
                institution shall establish and maintain an Internet 
                site on which the financial institution shall post the 
                written agreement between the financial institution and 
                the institution of higher education for each affiliated 
                consumer financial product or service.
                    ``(B) Financial institution to provide contracts to 
                the bureau.--Each financial institution shall provide 
                to the Bureau, in electronic format, the written 
                agreements that it publishes on its Internet site 
                pursuant to this paragraph.
                    ``(C) Record repository.--The Bureau shall 
                establish and maintain on its publicly available 
                Internet site a central repository of the agreements 
                received from financial institutions pursuant to this 
                paragraph, and such agreements shall be easily 
                accessible and retrievable by the public.
                    ``(D) Exception.--This paragraph shall not apply to 
                individually negotiated changes to contractual terms, 
                such as individually modified workouts or 
                renegotiations of amounts owed by an institution of 
                higher education.
    ``(c) Prohibition of Revenue-Sharing Arrangement.--A financial 
institution that offers a consumer financial product or service that is 
affiliated with an institution of higher education may not enter into a 
revenue-sharing arrangement with the institution of higher education.
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit a financial institution from establishing a 
consumer product or service affiliated with an institution of higher 
education if--
            ``(1) the consumer product or service will--
                    ``(A) assist college students in reducing costs or 
                fees associated with the use of consumer financial 
                products or services;
                    ``(B) increase consumer choice; and
                    ``(C) enhance consumer protections; and
            ``(2) the financial institution is in compliance with the 
        requirements of this Act.''.

SEC. 1016. IMPROVED CONSUMER PROTECTIONS FOR STUDENT LOAN SERVICING.

    (a) In General.--The Truth in Lending Act (15 U.S.C. 1601 et seq.) 
is amended by adding at the end the following new chapter:

               ``CHAPTER 6--POSTSECONDARY EDUCATION LOANS

``Sec.
``188. Definitions.
``189. Servicing of postsecondary education loans.
``190. Payments and fees.
``191. Authority of Bureau.
``192. State laws unaffected; inconsistent Federal and State 
                            provisions.
``Sec. 188. Definitions
    ``In this chapter:
            ``(1) Alternative repayment arrangement.--The term 
        `alternative repayment arrangement' means an agreed upon 
        arrangement between a loan holder (or, for a Federal Direct 
        Loan or a Federal Perkins Loan, the Secretary of Education or 
        the institution of higher education that made such loan, 
        respectively) or student loan servicer and a borrower--
                    ``(A) that is different than the terms under an 
                existing postsecondary education loan; and
                    ``(B) pursuant to which remittance of a monthly 
                payment--
                            ``(i) satisfies the terms of the 
                        postsecondary education loan; or
                            ``(ii) is not required for a period of 1 or 
                        more months in order to satisfy the terms of 
                        the postsecondary education loan.
            ``(2) Billing group.--The term `billing group' means a 
        postsecondary education loan account that--
                    ``(A) is serviced by a student loan servicer; and
                    ``(B) includes 2 or more postsecondary education 
                loans that are in repayment status.
            ``(3) Bureau.--The term `Bureau' has the meaning given that 
        term in section 103.
            ``(4) Effective date of transfer.--The term `effective date 
        of transfer' means the date on which the first payment is due 
        to a transferee servicer from a borrower under a postsecondary 
        education loan.
            ``(5) Federal direct loan.--The term `Federal Direct Loan' 
        means a loan made under part D of title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1087a et seq.).
            ``(6) Federal perkins loan.--The term `Federal Perkins 
        Loan' means a loan made under part E of title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1087aa et seq.).
            ``(7) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            ``(8) Late fee.--The term `late fee' means a late fee, 
        penalty, or adjustment to principal, imposed because of a late 
        payment or delinquency by the borrower under a postsecondary 
        education loan.
            ``(9) Loan holder.--The term `loan holder' means a person 
        who owns the title to or promissory note for a postsecondary 
        education loan (except for a Federal Direct Loan or a Federal 
        Perkins Loan).
            ``(10) Open end credit plan.--The term `open end credit 
        plan' has the meaning given that term in section 103.
            ``(11) Postsecondary education expense.--The term 
        `postsecondary education expense' means any expense that is 
        included as part of the cost of attendance (as that term is 
        defined in section 472 of the Higher Education Act of 1965 (20 
        U.S.C. 1087ll)) of a student.
            ``(12) Postsecondary education lender.--The term 
        `postsecondary education lender'--
                    ``(A) means--
                            ``(i) a financial institution, as defined 
                        in section 3 of the Federal Deposit Insurance 
                        Act (12 U.S.C. 1813) that solicits, makes, or 
                        extends postsecondary education loans;
                            ``(ii) a Federal credit union, as defined 
                        in section 101 of the Federal Credit Union Act 
                        (12 U.S.C. 1752) that solicits, makes, or 
                        extends postsecondary education loans; and
                            ``(iii) any other person engaged in the 
                        business of soliciting, making, or extending 
                        postsecondary education loans; and
                    ``(B) does not include--
                            ``(i) the Secretary of Education; or
                            ``(ii) an institution of higher education 
                        with respect to any Federal Perkins Loan made 
                        by the institution.
            ``(13) Postsecondary education loan.--The term 
        `postsecondary education loan'--
                    ``(A) means a loan that is--
                            ``(i) made, insured, or guaranteed under 
                        part B, D, or E of title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1071 et seq., 
                        1087a et seq., 1087aa et seq.); or
                            ``(ii) issued or made by a postsecondary 
                        education lender and is--
                                    ``(I) extended to a borrower with 
                                the expectation that the amounts 
                                extended will be used in whole or in 
                                part to pay postsecondary education 
                                expenses; or
                                    ``(II) extended for the purpose of 
                                refinancing or consolidating 1 or more 
                                loans described in subclause (I) or 
                                clause (i);
                    ``(B) includes a private education loan (as defined 
                in section 140(a)); and
                    ``(C) does not include a loan--
                            ``(i) made under an open-end credit plan; 
                        or
                            ``(ii) that is secured by real property.
            ``(14) Qualified written request.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `qualified written request' means a written 
                correspondence of a borrower (other than notice on a 
                payment medium supplied by the student loan servicer) 
                transmitted by mail, facsimile, or electronically 
                through an email address or website designated by the 
                student loan servicer to receive communications from 
                borrowers that--
                            ``(i) includes, or otherwise enables the 
                        student loan servicer to identify, the name and 
                        account of the borrower; and
                            ``(ii) includes, to the extent applicable--
                                    ``(I) sufficient detail regarding 
                                the information sought by the borrower; 
                                or
                                    ``(II) a statement of the reasons 
                                for the belief of the borrower that 
                                there is an error regarding the account 
                                of the borrower.
                    ``(B) Correspondence delivered to other 
                addresses.--
                            ``(i) In general.--A written correspondence 
                        of a borrower is a qualified written request if 
                        the written correspondence--
                                    ``(I) meets the requirements under 
                                clauses (i) and (ii) of subparagraph 
                                (A); and
                                    ``(II) is transmitted to and 
                                received by a student loan servicer at 
                                a mailing address, facsimile number, 
                                email address, or website address other 
                                than the address or number designated 
                                by that student loan servicer to 
                                receive communications from borrowers.
                            ``(ii) Duty to transfer.--A student loan 
                        servicer shall, within a reasonable period of 
                        time, transfer a written correspondence of a 
                        borrower received by the student loan servicer 
                        at a mailing address, facsimile number, email 
                        address, or website address other than the 
                        address or number designated by that student 
                        loan servicer to receive communications from 
                        borrowers to the correct address or appropriate 
                        office or other unit of the student loan 
                        servicer.
                            ``(iii) Date of receipt.--A written 
                        correspondence of a borrower transferred in 
                        accordance with clause (ii) shall be deemed to 
                        be received by the student loan servicer on the 
                        date on which the written correspondence is 
                        transferred to the correct address or 
                        appropriate office or other unit of the student 
                        loan servicer.
            ``(15) Student loan servicer.--The term `student loan 
        servicer'--
                    ``(A) means a person who performs student loan 
                servicing;
                    ``(B) includes a person performing student loan 
                servicing for a postsecondary education loan on behalf 
                of an institution of higher education or the Secretary 
                of Education under a contract or other agreement;
                    ``(C) does not include the Secretary of Education 
                to the extent the Secretary directly performs student 
                loan servicing for a postsecondary education loan; and
                    ``(D) does not include an institution of higher 
                education, to the extent that the institution directly 
                performs student loan servicing for a Federal Perkins 
                Loan made by the institution.
            ``(16) Student loan servicing.--The term `student loan 
        servicing' includes any of the following activities:
                    ``(A) Receiving any scheduled periodic payments 
                from a borrower under a postsecondary education loan 
                (or notification of such payments).
                    ``(B) Applying payments described in subparagraph 
                (A) to an account of the borrower pursuant to the terms 
                of the postsecondary education loan or of the contract 
                governing the servicing of the postsecondary education 
                loan.
                    ``(C) During a period in which no payment is 
                required on the postsecondary education loan--
                            ``(i) maintaining account records for the 
                        postsecondary education loan; and
                            ``(ii) communicating with the borrower on 
                        behalf of the loan holder or, with respect to a 
                        Federal Direct Loan or Federal Perkins Loan, 
                        the Secretary of Education or the institution 
                        of higher education that made the loan, 
                        respectively.
                    ``(D) Interacting with a borrower to facilitate the 
                activities described in subparagraphs (A), (B), and 
                (C), including activities to help prevent default by 
                the borrower of the obligations arising from the 
                postsecondary education loan.
            ``(17) Transfer of servicing.--The term `transfer of 
        servicing' means the assignment, sale, or transfer of any 
        student loan servicing of a postsecondary education loan from a 
        transferor servicer to a transferee servicer.
            ``(18) Transferee servicer.--The term `transferee servicer' 
        means the person to whom any student loan servicing of a 
        postsecondary education loan is assigned, sold, or transferred.
            ``(19) Transferor servicer.--The term `transferor servicer' 
        means the person who assigns, sells, or transfers any student 
        loan servicing of a postsecondary education loan to another 
        person.
``Sec. 189. Servicing of postsecondary education loans
    ``(a) Student Loan Servicer Requirements.--A student loan servicer 
may not--
            ``(1) charge a fee for responding to a qualified written 
        request under this chapter;
            ``(2) fail to take timely action to respond to a qualified 
        written request from a borrower to correct an error relating to 
        an allocation of payment or the payoff amount of the 
        postsecondary education loan;
            ``(3) fail to take reasonable steps to avail the borrower 
        of all possible alternative repayment arrangements to avoid 
        default;
            ``(4) fail to perform the obligations required under 
        section 493C(d) of the Higher Education Act of 1965 (20 U.S.C. 
        1098e(d));
            ``(5) fail to respond within 10 business days to a request 
        from a borrower to provide the name, address, and other 
        relevant contact information of the loan holder of the 
        borrower's postsecondary education loan or, for a Federal 
        Direct Loan or a Federal Perkins Loan, the Secretary of 
        Education or the institution of higher education who made the 
        loan, respectively;
            ``(6) fail to comply with--
                    ``(A) any applicable requirement of the 
                Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 
                seq.); or
                    ``(B) in the case of a postsecondary education loan 
                made, issued, or guaranteed under part B, D, or E of 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070 et seq.), part A of title VII of the Public Health 
                Service Act (42 U.S.C. 292 et seq.), or part E of title 
                VIII of such Act (42 U.S.C. 297a et seq.), any 
                applicable requirement of the Act authorizing the 
                postsecondary education loan;
            ``(7) fail to comply with any other obligation that the 
        Bureau, by regulation, has determined to be appropriate to 
        carry out the consumer protection purposes of this chapter; or
            ``(8) fail to perform other standard servicer's duties.
    ``(b) Borrower Inquiries.--
            ``(1) Duty of student loan servicers to respond to borrower 
        inquiries.--
                    ``(A) Notice of receipt of request.--If a borrower 
                under a postsecondary education loan submits a 
                qualified written request to the student loan servicer 
                for information relating to the student loan servicing 
                of the postsecondary education loan, the student loan 
                servicer shall provide a written response acknowledging 
                receipt of the qualified written request within 5 
                business days unless any action requested by the 
                borrower is taken within such period.
                    ``(B) Action with respect to inquiry.--Not later 
                than 30 business days after the receipt from any 
                borrower of any qualified written request under 
                subparagraph (A) and, if applicable, before taking any 
                action with respect to the qualified written request of 
                the borrower, the student loan servicer shall--
                            ``(i) make appropriate corrections in the 
                        account of the borrower, including the 
                        crediting of any late fees, and transmit to the 
                        borrower a written notification of such 
                        correction (which shall include the name and 
                        toll-free or collect-call telephone number of a 
                        representative of the student loan servicer who 
                        can provide assistance to the borrower);
                            ``(ii) after conducting an investigation, 
                        provide the borrower with a written explanation 
                        or clarification that includes--
                                    ``(I) to the extent applicable, a 
                                statement of the reasons for which the 
                                student loan servicer believes the 
                                account of the borrower is correct as 
                                determined by the student loan 
                                servicer; and
                                    ``(II) the name and toll-free or 
                                collect-call telephone number of an 
                                individual employed by, or the office 
                                or department of, the student loan 
                                servicer who can provide assistance to 
                                the borrower; or
                            ``(iii) after conducting an investigation, 
                        provide the borrower with a written explanation 
                        or clarification that includes--
                                    ``(I) information requested by the 
                                borrower or an explanation of why the 
                                information requested is unavailable or 
                                cannot be obtained by the student loan 
                                servicer; and
                                    ``(II) the name and toll-free or 
                                collect-call telephone number of an 
                                individual employed by, or the office 
                                or department of, the student loan 
                                servicer who can provide assistance to 
                                the borrower.
                    ``(C) Limited extension of response time.--
                            ``(i) In general.--There may be 1 extension 
                        of the 30-day period described in subparagraph 
                        (B) of not more than 15 days if, before the end 
                        of such 30-day period, the student loan 
                        servicer notifies the borrower of the extension 
                        and the reasons for the delay in responding.
                            ``(ii) Reports to bureau.--Each student 
                        loan servicer shall, on an annual basis, report 
                        to the Bureau the aggregate number of 
                        extensions sought by the student loan servicer 
                        under clause (i).
            ``(2) Protection of credit information.--During the 60-day 
        period beginning on the date on which a student loan servicer 
        receives a qualified written request from a borrower relating 
        to a dispute regarding payments by the borrower, a student loan 
        servicer may not provide negative credit information to any 
        consumer reporting agency (as defined in section 603 of the 
        Truth in Lending Act (15 U.S.C. 1681a)) relating to the subject 
        of the qualified written request or to such period, including 
        any information relating to a late payment or payment owed by 
        the borrower on the borrower's postsecondary education loan.
            ``(3) Single point of contact for certain borrowers.--A 
        student loan servicer shall designate an office or other unit 
        of the student loan servicer to act as a point of contact 
        regarding postsecondary education loans for--
                    ``(A) a borrower who is not less than 60 days 
                delinquent under the postsecondary education loan;
                    ``(B) a borrower who seeks information regarding, 
                seeks to enter an agreement for, or seeks to resolve an 
                issue under a repayment option that requires subsequent 
                submission of supporting documentation; and
                    ``(C) a borrower under a private education loan (as 
                defined in section 140) who is seeking to modify the 
                terms of the repayment of the postsecondary education 
                loan because of hardship.
    ``(c) Liaison for Members of the Armed Forces and Veterans.--
            ``(1) Definition.--In this subsection, the term `veteran' 
        has the meaning given that term in section 101 of title 38, 
        United States Code.
            ``(2) Designation.--A student loan servicer shall designate 
        1 or more employees to act as a liaison for members of the 
        Armed Forces, veterans, and spouses and dependents of a member 
        of the Armed Forces or a veteran, who shall be--
                    ``(A) responsible for answering inquiries relating 
                to postsecondary education loans from members of the 
                Armed Forces, veterans, and spouses and dependents of a 
                member of the Armed Forces or a veteran; and
                    ``(B) specially trained on the benefits available 
                to members of the Armed Forces and veterans under the 
                Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 
                seq.) and other Federal and State laws relating to 
                postsecondary education loans.
            ``(3) Toll free number.--A student loan servicer shall 
        establish and maintain a toll-free telephone number that--
                    ``(A) may be used by a member of the Armed Forces, 
                veteran, or spouse or dependent of a member of the 
                Armed Forces or a veteran to connect directly to the 
                liaison designated under paragraph (2); and
                    ``(B) shall be listed on the primary Internet 
                website of the student loan servicer and on monthly 
                billing statements.
    ``(d) Transfer of Servicing.--
            ``(1) Disclosure to applicant relating to transfer of 
        servicing.--
                    ``(A) In general.--A postsecondary education lender 
                shall disclose to each person who applies for a 
                postsecondary education loan, at the time of 
                application for the postsecondary education loan, 
                whether there may be a transfer of servicing of the 
                postsecondary education loan at any time during which 
                the postsecondary education loan is outstanding.
                    ``(B) No liability.--A postsecondary education 
                lender shall not be liable to a borrower for failure to 
                comply with subparagraph (A) if the application for a 
                postsecondary education loan was made before the 
                regulations established under section 191 take effect.
            ``(2) Notice by transferor servicer at time of transfer of 
        servicing.--
                    ``(A) Notice requirement.--A transferor servicer 
                shall notify the borrower under a postsecondary 
                education loan, in writing, of any transfer of student 
                loan servicing for the postsecondary education loan 
                (with respect to which such notice is made).
                    ``(B) Time of notice.--
                            ``(i) In general.--Except as provided under 
                        clause (ii), the notice required under 
                        subparagraph (A) shall be made to the borrower 
                        not less than 15 days before the effective date 
                        of transfer of the student loan servicing of 
                        the postsecondary education loan.
                            ``(ii) Exception for certain proceedings.--
                        The notice required under subparagraph (A) 
                        shall be made to the borrower not more than 30 
                        days after the effective date of transfer of 
                        the student loan servicing of the borrower's 
                        postsecondary education loan if the transfer of 
                        student loan servicing is preceded by--
                                    ``(I) termination of the contract 
                                for student loan servicing of the 
                                postsecondary education loan for cause;
                                    ``(II) commencement of bankruptcy 
                                proceedings of the transferor servicer; 
                                or
                                    ``(III) any other situation in 
                                which the Bureau determines that such 
                                exception is warranted.
                    ``(C) Contents of notice.--The notice required 
                under subparagraph (A) shall--
                            ``(i) be made in writing and, if the 
                        transferor servicer has an email address for 
                        the borrower, by email; and
                            ``(ii) include--
                                    ``(I) the effective date of the 
                                transfer;
                                    ``(II) the name, address, website, 
                                and toll-free or collect-call telephone 
                                number of the transferee servicer;
                                    ``(III) a toll-free or collect-call 
                                telephone number for an individual 
                                employed by the transferor servicer, or 
                                the office or department of, the 
                                transferor servicer that can be 
                                contacted by the borrower to answer 
                                inquiries relating to the transfer of 
                                servicing;
                                    ``(IV) the name and toll-free or 
                                collect-call telephone number for an 
                                individual employed by the transferee 
                                servicer, or the office or department 
                                of, the transferee servicer that can be 
                                contacted by the borrower to answer 
                                inquiries relating to the transfer of 
                                servicing;
                                    ``(V) the date on which the 
                                transferor servicer will cease to 
                                accept payments relating to the 
                                borrower's postsecondary education loan 
                                and the date on which the transferee 
                                servicer will begin to accept such 
                                payments;
                                    ``(VI) a statement that the 
                                transfer of student loan servicing of 
                                the postsecondary education loan does 
                                not affect any term or condition of the 
                                postsecondary education loan other than 
                                terms directly related to the student 
                                loan servicing of the postsecondary 
                                education loan;
                                    ``(VII) a statement disclosing--
                                            ``(aa) whether borrower 
                                        authorization for recurring 
                                        electronic funds transfers will 
                                        be transferred to the 
                                        transferee servicer; and
                                            ``(bb) if any such 
                                        recurring electronic funds 
                                        transfers cannot be 
                                        transferred, information as to 
                                        how the borrower may establish 
                                        new recurring electronic funds 
                                        transfers in connection with 
                                        transfer of servicing to the 
                                        transferee servicer;
                                    ``(VIII) a statement disclosing--
                                            ``(aa) the application of 
                                        all payments and charges 
                                        relating to the borrower's 
                                        postsecondary education loan as 
                                        of the effective date of the 
                                        transfer, including--

                                                    ``(AA) the date the 
                                                last payment of the 
                                                borrower was received;

                                                    ``(BB) the date the 
                                                last late fee, 
                                                arrearages, or other 
                                                charge was applied; and

                                                    ``(CC) the amount 
                                                of the last payment 
                                                allocated to principal, 
                                                interest, and other 
                                                charges;

                                            ``(bb) the status of the 
                                        borrower's postsecondary 
                                        education loan as of the 
                                        effective date of the transfer, 
                                        including whether the loan is 
                                        in default;
                                            ``(cc) whether any 
                                        application for an alternative 
                                        repayment arrangement submitted 
                                        by the borrower is pending; and
                                            ``(dd) an itemization and 
                                        explanation for all arrearages 
                                        claimed to be due as of the 
                                        effective date of the transfer;
                                    ``(IX) a detailed description of 
                                any benefit, alternative repayment 
                                arrangement, or other term or condition 
                                arranged between the transferor 
                                servicer and the borrower that is not 
                                included in the terms of the promissory 
                                note;
                                    ``(X) a detailed description of any 
                                item identified under subclause (VIII) 
                                that will cease to apply upon transfer, 
                                including an explanation; and
                                    ``(XI) information on how to file a 
                                complaint with the Bureau.
            ``(3) Notice by transferee servicer at time of transfer of 
        servicing.--
                    ``(A) Notice requirement.--A transferee servicer 
                shall notify the borrower under a postsecondary 
                education loan, in writing, of any transfer of 
                servicing of the postsecondary education loan.
                    ``(B) Time of notice.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the notice required under 
                        subparagraph (A) shall be made to the borrower 
                        not more than 15 days after the effective date 
                        of transfer of the student loan servicing of 
                        the borrower's postsecondary education loan.
                            ``(ii) Exception for certain proceedings.--
                        The notice required under subparagraph (A) 
                        shall be made to the borrower not more than 30 
                        days after the effective date of transfer of 
                        the student loan servicing of the student loan 
                        servicing of borrower's postsecondary education 
                        loan if the transfer of servicing is preceded 
                        by--
                                    ``(I) termination of the contract 
                                for student loan servicing the 
                                postsecondary education loan for cause;
                                    ``(II) commencement of bankruptcy 
                                proceedings of the transferor servicer; 
                                or
                                    ``(III) any other situation in 
                                which the Bureau determines that such 
                                exception is warranted.
                    ``(C) Contents of notice.--The notice required 
                under subparagraph (A) shall be made in the same manner 
                as under paragraph (2)(C) and include the information 
                described in paragraph (2)(C).
            ``(4) Method of notification.--The notification required 
        under this subsection shall be provided in writing.
            ``(5) Treatment of loan payments during transfer period.--
                    ``(A) In general.--During the 60-day period 
                beginning on the effective date of transfer relating to 
                a borrower's postsecondary education loan, a late fee 
                may not be imposed on the borrower with respect to any 
                payment on the postsecondary education loan, and no 
                such payment may be treated as late for any other 
                purposes, if the payment is received by the transferor 
                servicer (rather than the transferee servicer who 
                should properly receive payment) before the due date 
                applicable to such payment.
                    ``(B) Notice.--To the maximum extent practicable, a 
                transferor servicer shall notify a borrower, both in 
                writing and by telephone, regarding any payment 
                received by the transferor servicer (rather than the 
                transferee servicer who should properly receive 
                payment).
            ``(6) Electronic fund transfer authority.--A transferee 
        servicer shall make available to a borrower whose student loan 
        servicing is transferred to the transferee servicer a simple, 
        online process through which the borrower may transfer to the 
        transferee servicer any existing authority for an electronic 
        fund transfer that the borrower had provided to the transferor 
        servicer.
            ``(7) Servicer liability.--
                    ``(A) Effective date of regulations.--A student 
                loan servicer shall not be liable to a borrower for 
                failure to comply with paragraph (2) or (3) with 
                respect to a transfer of student loan servicing before 
                the regulations under section 191 take effect.
                    ``(B) Mitigating action.--A student loan servicer 
                or a postsecondary education lender shall not be liable 
                to a borrower for failure to comply with a requirement 
                under this section if, not later than 60 days after 
                discovering an error and before the commencement of an 
                action under section 130 or the receipt of written 
                notice of the error from the borrower, the student loan 
                servicer notifies the borrower of the error and makes 
                any adjustments in the appropriate account that are 
                necessary to ensure that the borrower will not be 
                required to pay an amount greater than the amount that 
                the borrower otherwise would have paid.
``Sec. 190. Payments and fees
    ``(a) Prohibition on Recommending Default.--A loan holder or 
student loan servicer may not recommend or encourage default or 
delinquency on an existing postsecondary education loan prior to and in 
connection with the process of qualifying for or enrolling in an 
alternative repayment arrangement, including the origination of a new 
postsecondary education loan that refinances all or any portion of such 
existing loan or debt.
    ``(b) Late Fees.--
            ``(1) In general.--A late fee may not be charged to a 
        borrower under a postsecondary education loan under any of the 
        following circumstances, either individually or in combination:
                    ``(A) On a per-loan basis when a borrower has 
                multiple postsecondary education loans in a billing 
                group.
                    ``(B) In an amount greater than 4 percent of the 
                amount of the payment past due.
                    ``(C) Before the end of the 15-day period beginning 
                on the date the payment is due.
                    ``(D) More than once with respect to a single late 
                payment.
                    ``(E) The borrower fails to make a singular, non 
                successive regularly-scheduled payment on the 
                postsecondary education loan.
            ``(2) Coordination with subsequent late fees.--No late fee 
        may be charged to a borrower under a postsecondary education 
        loan relating to an insufficient payment if the payment is made 
        on or before the due date of the payment, or within any 
        applicable grace period for the payment, if the insufficiency 
        is attributable only to a late fee relating to an earlier 
        payment, and the payment is otherwise a full payment for the 
        applicable period.
    ``(c) Acceleration of Postsecondary Education Loans.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        postsecondary education loan executed after the date of 
        enactment of the Higher Education Affordability Act may not 
        include a provision that permits the loan holder or student 
        loan servicer to accelerate, in whole or in part, payments on 
        the postsecondary education loan.
            ``(2) Acceleration caused by a payment default.--A 
        postsecondary education loan may include a provision that 
        permits acceleration of the postsecondary education loan in 
        cases of payment default.
    ``(d) Modification and Deferral Fees Prohibited.--A loan holder or 
student loan servicer may not charge a borrower any fee to modify, 
renew, extend, or amend a postsecondary education loan, or to defer any 
payment due under the terms of a postsecondary education loan.
    ``(e) Payoff Statement.--
            ``(1) Fees.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) or (D), a loan holder or student loan 
                servicer may not charge a fee for informing or 
                transmitting to a borrower or a person authorized by 
                the borrower the balance due to pay off the outstanding 
                balance on a postsecondary education loan.
                    ``(B) Transaction fee.--If a loan holder or student 
                loan servicer provides the information described in 
                subparagraph (A) by facsimile transmission or courier 
                service, the loan holder or student loan servicer may 
                charge a processing fee to cover the cost of such 
                transmission or service in an amount that is not more 
                than a comparable fee imposed for similar services 
                provided in connection with consumer credit 
                transactions.
                    ``(C) Fee disclosure.--A loan holder or student 
                loan servicer shall disclose to the borrower that 
                payoff balances are available for free pursuant to 
                subparagraph (A) before charging a transaction fee 
                under subparagraph (B).
                    ``(D) Multiple requests.--If a loan holder or 
                student loan servicer has provided the information 
                described in subparagraph (A) without charge, other 
                than the transaction fee permitted under subparagraph 
                (B), on 4 or more occasions during a calendar year, the 
                loan holder or student loan servicer may thereafter 
                charge a reasonable fee for providing such information 
                during the remainder of the calendar year.
            ``(2) Prompt delivery.--A loan holder or a student loan 
        servicer that has received a request by a borrower or a person 
        authorized by a borrower for the information described in 
        paragraph (1)(A) shall provide such information to the borrower 
        or person authorized by the borrower not later than 5 business 
        days after receiving such request.
    ``(f) Interest Rate and Term Changes for Certain Postsecondary 
Education Loans.--
            ``(1) Notification requirements.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), a student loan servicer shall provide written 
                notice to a borrower of any material change in the 
                terms of the postsecondary education loan, including an 
                increase in the interest rate, not later than 45 days 
                before the effective date of the change or increase.
                    ``(B) Material changes in terms.--The Bureau shall, 
                by regulation, establish guidelines for determining 
                which changes in terms are material under subparagraph 
                (A).
            ``(2) Limits on interest rate and fee increases applicable 
        to outstanding balance.--Except as provided in paragraph (3), a 
        loan holder or student loan servicer may not increase the 
        interest rate or other fee applicable to an outstanding balance 
        on a postsecondary education loan.
            ``(3) Exceptions.--The requirements under paragraphs (1) 
        and (2) shall not apply to--
                    ``(A) an increase in any applicable variable 
                interest rate incorporated in the terms of a 
                postsecondary education loan that provides for changes 
                in the interest rate according to operation of an index 
                that is not under the control of the loan holder or 
                student loan servicer and is published for viewing by 
                the general public;
                    ``(B) an increase in interest rate due to the 
                completion of a workout or temporary hardship 
                arrangement by the borrower or the failure of the 
                borrower to comply with the terms of a workout or 
                temporary hardship arrangement if--
                            ``(i) the interest rate applicable to a 
                        category of transactions following any such 
                        increase does not exceed the rate or fee that 
                        applied to that category of transactions prior 
                        to commencement of the arrangement; and
                            ``(ii) the loan holder or student loan 
                        servicer has provided the borrower, prior to 
                        the commencement of such arrangement, with 
                        clear and conspicuous disclosure of the terms 
                        of the arrangement (including any increases due 
                        to such completion or failure); and
                    ``(C) an increase in interest rate due to a 
                provision included within the terms of a postsecondary 
                education loan that provides for a lower interest rate 
                based on the borrower's agreement to a prearranged plan 
                that authorizes recurring electronic funds transfers 
                if--
                            ``(i) the borrower withdraws the borrower's 
                        authorization of the prearranged recurring 
                        electronic funds transfer plan; and
                            ``(ii) after withdrawal of the borrower's 
                        authorization and prior to increasing the 
                        interest rate, the loan holder or student loan 
                        servicer has provided the borrower with clear 
                        and conspicuous disclosure of the impending 
                        change in borrower's interest rate and a 
                        reasonable opportunity to reauthorize the 
                        prearranged electronic funds transfers plan.
    ``(g) Prompt and Fair Crediting of Payments.--
            ``(1) Prompt crediting.--Payments received from a borrower 
        under a postsecondary education loan by the student loan 
        servicer shall be posted promptly to the account of the 
        borrower as specified in regulations of the Bureau. Such 
        regulations shall prevent a fee from being imposed on any 
        borrower if the student loan servicer has received the 
        borrower's payment in readily identifiable form, by 5:00 p.m. 
        on the date on which such payment is due, in the amount, 
        manner, and location specified by the student loan servicer.
            ``(2) Application of payments.--
                    ``(A) In general.--
                            ``(i) Treatments of prepayments.--A student 
                        loan servicer that services a billing group of 
                        a borrower shall, upon receipt of a payment 
                        from the borrower, apply amounts in excess of 
                        the monthly payment amount first to the 
                        principal of the postsecondary education loan 
                        bearing the highest interest rate, and then to 
                        each successive principal balance bearing the 
                        next highest interest rate until the payment is 
                        exhausted, unless otherwise specified in 
                        writing by the borrower.
                            ``(ii) Treatment of underpayments.--
                                    ``(I) Regulations required.--Not 
                                later than 1 year after the date on 
                                which the Bureau submits the first 
                                report required under section 1018 of 
                                the Higher Education Affordability Act, 
                                the Bureau shall issue regulations 
                                establishing the manner in which a 
                                student loan servicer shall apply 
                                amounts less than the total payment due 
                                during the billing cycle.
                                    ``(II) Considerations.--In issuing 
                                the regulations required under 
                                subclause (I), the Bureau shall 
                                consider--
                                            ``(aa) the impact of the 
                                        regulations on--

                                                    ``(AA) outstanding 
                                                debt of borrowers and 
                                                the imposition of late 
                                                fees;

                                                    ``(BB) credit 
                                                ratings of borrowers; 
                                                and

                                                    ``(CC) continued 
                                                availability of 
                                                alternative repayment 
                                                arrangements;

                                            ``(bb) any other factors 
                                        the Bureau determines are 
                                        appropriate; and
                                            ``(cc) the findings from 
                                        the report required under 
                                        section 1018 of the Higher 
                                        Education Affordability Act.
                    ``(B) Changes by student loan servicer.--If a 
                student loan servicer makes a material change in the 
                mailing address, office, or procedures for handling 
                borrower payments, and such change causes a material 
                delay in the crediting of a payment made during the 60-
                day period following the date on which such change took 
                effect, the student loan servicer may not impose any 
                late fee for a late payment on the postsecondary 
                education loan to which such payment was credited.
    ``(h) Additional Requirements for Prepayments.--
            ``(1) Advancement of date due.--A student loan servicer may 
        advance the date due of the next regularly scheduled 
        installment payment of a postsecondary education loan upon 
        remittance of a prepayment by the borrower, if--
                    ``(A) the borrower's payment is sufficient to 
                satisfy at least 1 additional installment payment;
                    ``(B) the number of billing cycles for which the 
                date due is advanced is equal to total number of 
                installment payments satisfied by the prepayment; and
                    ``(C) upon receipt by the student loan servicer, 
                the prepayment is applied--
                            ``(i) to the principal balance of the 
                        postsecondary education loan; or
                            ``(ii) if the student loan servicer 
                        services a billing group of a borrower, to the 
                        principal balance of the postsecondary 
                        education loan with the highest interest rate 
                        in such billing group.
            ``(2) Borrower rights.--A student loan servicer shall 
        provide a clear, understandable and transparent means, 
        including through submission of an online form, for the 
        borrower to elect to--
                    ``(A) instruct the servicer not to advance the date 
                due of future installment payments as described in 
                paragraph (1); and
                    ``(B) voluntarily make payments in excess of the 
                borrower's regularly scheduled installment payment 
                amount on a periodic basis via recurring electronic 
                funds transfers or other automatic payment arrangement.
    ``(i) Timing of Payments.--A student loan servicer may not treat a 
payment on a postsecondary education loan as late for any purpose 
unless the student loan servicer has adopted reasonable procedures 
designed to ensure that each billing statement required under 
subsection (j)(1) is mailed or delivered to the consumer not later than 
21 days before the payment due date.
    ``(j) Other Requirements for Postsecondary Education Loans.--
            ``(1) Statement required with each billing cycle.--A 
        student loan servicer for each borrower's account that is being 
        serviced by that student loan servicer and that includes a 
        postsecondary education loan shall transmit to the borrower, 
        for each billing cycle at the end of which there is an 
        outstanding balance in that account, a statement that 
        includes--
                    ``(A) the outstanding balance in the account at the 
                beginning of the billing cycle;
                    ``(B) the total amount credited to the account 
                during the billing cycle;
                    ``(C) the amount of any fee added to the account 
                during the billing cycle, itemized to show the amounts, 
                if any, due to the application of an increased interest 
                rate, and the amount, if any, imposed as a minimum or 
                fixed charge;
                    ``(D) the balance on which the fee described in 
                subparagraph (C) was computed and a statement of how 
                the balance was determined;
                    ``(E) whether the balance described in subparagraph 
                (D) was determined without first deducting all payments 
                and other credits during the billing cycle, and the 
                amount of any such payments and credits;
                    ``(F) the outstanding balance in the account at the 
                end of the billing cycle;
                    ``(G) the date by which, or the period within 
                which, payment must be made to avoid late fees, if any;
                    ``(H) the address of the student loan servicer to 
                which the borrower may direct billing inquiries;
                    ``(I) the amount of any payments or other credits 
                during the billing cycle that was applied to pay down 
                principal, and the amount applied to interest;
                    ``(J) in the case of a billing group, the 
                allocation of any payments or other credits during the 
                billing cycle to each of the postsecondary education 
                loans in the billing group; and
                    ``(K) information on how to file a complaint with 
                the Bureau and with the ombudsman designated pursuant 
                to section 1035 of the Dodd-Frank Wall Street Reform 
                and Consumer Protection Act (12 U.S.C. 5535).
            ``(2) Payment deadlines and penalties.--
                    ``(A) Disclosure of payment deadlines.--In the case 
                of a postsecondary education loan account under which a 
                late fee or charge may be imposed due to the failure of 
                the borrower to make payment on or before the due date 
                for such payment, the billing statement required under 
                paragraph (1) with respect to the account shall 
                include, in a conspicuous location on the billing 
                statement, the date on which the payment is due or, if 
                different, the date on which a late fee will be 
                charged, together with the amount of the late fee to be 
                imposed if payment is made after that date.
                    ``(B) Payments at local branches.--If the loan 
                holder, in the case of a postsecondary education loan 
                account referred to in subparagraph (A), is a financial 
                institution that maintains a branch or office at which 
                payments on any such account are accepted from the 
                borrower in person, the date on which the borrower 
                makes a payment on the account at such branch or office 
                shall be considered to be the date on which the payment 
                is made for purposes of determining whether a late fee 
                may be imposed due to the failure of the borrower to 
                make payment on or before the due date for such 
                payment.
    ``(k) Corrections and Unintentional Violations.--A loan holder or 
student loan servicer who, when acting in good faith, fails to comply 
with any requirement under this section will to be deemed to have not 
violated such requirement if the loan holder or student loan servicer 
establishes that--
            ``(1) not later than 30 days after the date of execution of 
        the postsecondary education loan and prior to the institution 
        of any action under subtitle E of title X of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act (12 U.S.C. 5561 
        et seq.)--
                    ``(A) the borrower is notified of or discovers the 
                compliance failure;
                    ``(B) appropriate restitution to the borrower is 
                made; and
                    ``(C) necessary adjustments are made to the 
                postsecondary education loan that are necessary to 
                bring the postsecondary education loan into compliance 
                with the requirements of this section; or
            ``(2) not later than 60 days after the loan holder or 
        student loan servicer discovers or is notified of an 
        unintentional violation or bona fide error and prior to the 
        institution of any action under subtitle E of title X of the 
        Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
        U.S.C. 5561 et seq.)--
                    ``(A) the borrower is notified of the compliance 
                failure;
                    ``(B) appropriate restitution to the borrower is 
                made; and
                    ``(C) necessary adjustments are made to the 
                postsecondary education loan that are necessary to 
                bring the postsecondary education loan into compliance 
                with the requirements of this section.
    ``(l) Rule of Construction for Federal Postsecondary Education 
Loans.--Nothing in this section shall be construed to supercede any 
reporting or disclosure requirement required for a postsecondary 
education loan that is made, issued, or guaranteed under part B, D, or 
E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.), part A of title VII of the Public Health Service Act (42 U.S.C. 
292 et seq.), or part E of title VIII of such Act (42 U.S.C. 297a et 
seq.), if such reporting requirement does not directly conflict with 
the requirements of this section.
``Sec. 191. Authority of Bureau
    ``(a) Authorization.--The Bureau, in consultation with the 
Secretary of Education, is authorized to prescribe such rules and 
regulations, make such interpretations, and grant such reasonable 
exemptions, in accordance with, and as may be necessary to achieve the 
purposes of, this chapter.
    ``(b) Disclosure Requirements.--
            ``(1) In general.--The Bureau shall, in consultation with 
        the Secretary of Education, issue regulations requiring 
        disclosures, including the disclosures required under section 
        483A of the Higher Education Act of 1965, to borrowers that 
        clearly and conspicuously inform borrowers of the protections 
        afforded to them under this chapter and under other provisions 
        relating to postsecondary education loans. The Bureau shall 
        consider whether special disclosures are required to 
        accommodate the unique needs of borrowers who are members of 
        the Armed Forces or veterans.
            ``(2) Regulations required.--The regulations issued under 
        paragraph (1) shall--
                    ``(A) ensure that a borrower is made aware of--
                            ``(i) all repayment options available to 
                        the borrower, including the availability of 
                        refinancing products, and the effect of each 
                        repayment option on the total amount owed 
                        under, total cost of, and time to repay the 
                        postsecondary education loan;
                            ``(ii) the risks and costs associated with 
                        default; and
                            ``(iii) the eligibility of certain 
                        borrowers for discharge of certain 
                        postsecondary education loans; and
                    ``(B) require provision of information about how a 
                borrower can file a complaint with the Bureau relating 
                to an alleged violation of this chapter.
            ``(3) Timing of disclosures.--The regulations issued under 
        paragraph (1) shall specify the timing of the disclosures 
        described in paragraph (2)(A). Such timing may include--
                    ``(A) before the first payment is due under the 
                postsecondary education loan; or
                    ``(B) when the borrower--
                            ``(i) first exhibits difficulty in making 
                        payments under the postsecondary education 
                        loan;
                            ``(ii) is 30 days delinquent under the 
                        postsecondary education loan;
                            ``(iii) is 60 days delinquent under the 
                        postsecondary education loan;
                            ``(iv) notifies the student loan servicer 
                        of the intent of the borrower to forbear or 
                        defer payment under the postsecondary education 
                        loan;
                            ``(v) inquires about or requests the 
                        refinancing or consolidation of the 
                        postsecondary education loan; or
                            ``(vi) informs the student loan servicer, 
                        or a postsecondary education lender acting on 
                        behalf of the borrower informs the student loan 
                        servicer, that the borrower will be refinancing 
                        or consolidating the loan.
    ``(c) Unfair, Deceptive, and Abusive Acts or Lending Practices.--
The Bureau, by regulation or order, shall prohibit acts or practices in 
connection with--
            ``(1) a postsecondary education loan that the Bureau finds 
        to be unfair, deceptive, or designed to evade the provisions of 
        this chapter; or
            ``(2) the refinancing of a postsecondary education loan, 
        including facilitation of refinancing or enrollment in an 
        alternative repayment arrangement, that the Bureau finds to be 
        associated with abusive lending practices, or that are 
        otherwise not in the interest of the borrower.
    ``(d) Consultation With Secretary of Education.--In order to avoid 
duplication, to the extent practicable, the Bureau, in consultation 
with the Secretary of Education, may consider--
            ``(1) obligations of student loan servicers under title IV 
        of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
        and
            ``(2) findings from the report authorized under section 
        456(d) of the Higher Education Act of 1965 (20 U.S.C. 
        1087f(d)).
``Sec. 192. State laws unaffected; inconsistent Federal and State 
              provisions
    ``Nothing in this chapter shall annul, alter, or affect, or exempt 
any person subject to the provisions of this chapter from complying 
with the laws of any State with respect to student loan servicing 
practices, fees on postsecondary education loans, or other requirements 
relating to postsecondary education loans, except to the extent that 
those laws are inconsistent with any provision of this chapter, and 
then only to the extent of the inconsistency. The Bureau is authorized 
to determine whether such inconsistencies exist. The Bureau may not 
determine that any State law is inconsistent with any provision of this 
chapter if the Bureau determines that such law gives greater protection 
to the consumer. In making these determinations the Bureau shall 
consult with the appropriate Federal agencies.''.

                   Subpart 3--Regulations and Reports

SEC. 1017. IMPLEMENTATION OF REGULATIONS.

    (a) In General.--Except as otherwise provided in this part or the 
amendments made by this part, the Bureau, in consultation with the 
Secretary of Education, shall issue the regulations required under this 
part and the amendments made by this part not later than 1 year after 
the date of enactment of this Act.
    (b) Transitional Period.--Any requirement under section 433 of the 
Higher Education Act of 1965 (20 U.S.C. 1083), and any regulation 
issued pursuant to such section, that is determined by the Bureau to be 
duplicative of a regulation issued pursuant to this part or amendment 
made by this part shall continue to be in effect only until the 
effective date of such regulation issued pursuant to this part or the 
amendment made by this part.

SEC. 1018. REPORT ON CREDIT REPORTING AND STUDENT LENDING.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and as frequently thereafter as the Director of the Bureau 
determines an update is necessary, the Bureau shall submit to the 
appropriate committees of Congress a report on the impact of 
postsecondary education loan debt, which shall include an evaluation, 
analysis, and discussion of--
            (1) the impact on the credit of borrowers of--
                    (A) the common use of billing groups for 
                postsecondary education loans;
                    (B) the delinquency of 2 or more postsecondary 
                education loans contained in a billing group; and
                    (C) the availability of alternative repayment 
                arrangements for postsecondary education loans;
            (2) what processes student loan servicers implement in 
        furnishing student loan information to credit reporting 
        agencies;
            (3) the most effective ways to repair the credit history of 
        a borrower after a default or delinquency under a postsecondary 
        education loan;
            (4) legislative or regulatory changes the Bureau determines 
        would better assist borrowers under postsecondary education 
        loans;
            (5) the manner in which information about repayment 
        information about postsecondary education loans is furnished to 
        consumer reporting agencies and the impact on the credit 
        profile and credit score of the borrower when servicing rights 
        for postsecondary education loans are transferred between 
        student loan servicers; and
            (6) any other topics related to credit reporting of 
        postsecondary education loans the Bureau determines are 
        necessary.
    (b) Disaggregate.--To the extent practicable, the Director of the 
Bureau shall disaggregate the findings of the report under paragraph 
(1) according to race, ethnicity, income level, and geography.

SEC. 1019. OMBUDSMAN REPORT ON PRIVATE EDUCATION LOAN MARKET.

    Not less than once every 2 years, the ombudsman designated pursuant 
to section 1035 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5535) shall submit to the appropriate 
committees of Congress a report--
            (1) providing a detailed analysis of material terms and 
        conditions in private education loans; and
            (2) describing changes in the availability of private 
        education loans and other consumer financial products used to 
        finance postsecondary education expenses.

                 PART B--INTERNAL REVENUE CODE OF 1986

SEC. 1022. INFORMATION SHARING AUTHORITY RELATING TO INCOME-BASED 
              REPAYMENT.

    (a) In General.--Subparagraph (A) of section 6103(l)(13) of the 
Internal Revenue Code of 1986 is amended by striking ``who has received 
an applicable student loan and whose loan repayment amounts are based 
in whole or in part on the taxpayer's income'' and inserting ``who is 
more than 150 days delinquent on an eligible student loan''.
    (b) Restriction on Redisclosures.--Subparagraph (B) of section 
6103(l)(13) of such Code is amended--
            (1) by striking ``Return information'' and inserting the 
        following:
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, return 
                        information'',
            (2) by striking ``income contingent'' and inserting 
        ``income-based'',
            (3) by inserting ``for purposes of enrolling the taxpayer 
        in an income-based repayment plan pursuant to section 493C(d) 
        of the Higher Education Act of 1965 (as in effect on the date 
        of enactment of the Higher Education Affordability Act)'' 
        before the period at the end, and
            (4) by adding at the end the following new clauses:
                            ``(ii) Redisclosure of repayment amount to 
                        certain loan service providers.--Upon request 
                        from an applicable loan service provider, the 
                        Secretary of Education may disclose to the 
                        taxpayer and to the applicable loan service 
                        provider the taxpayer's repayment amount under 
                        an income-based repayment plan described in 
                        section 493C(b) of the Higher Education Act of 
                        1965 (as in effect on the date of enactment of 
                        the Higher Education Affordability Act).
                            ``(iii) Use in administrative 
                        proceedings.--The information disclosed 
                        pursuant to this paragraph may be open to 
                        inspection or disclosure to officers and 
                        employees of the Department of Education who 
                        are personally and directly engaged in any 
                        administrative proceeding arising out of the 
                        determination of the income-based repayment 
                        amount and to the taxpayer and the taxpayer's 
                        representative.''.
    (c) Definitions.--Subparagraph (C) of section 6103(l)(13) of such 
Code is amended to read as follows:
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Eligible student loan.--The term 
                        `eligible student loan' has the meaning given 
                        to the term `eligible loan' under section 
                        493C(a) of the Higher Education Act of 1965 (as 
                        in effect on the date of enactment of the 
                        Higher Education Affordability).
                            ``(ii) Applicable loan service provider.--
                        For purposes of this subparagraph, the term 
                        `applicable loan service provider' means--
                                    ``(I) any entity with a contract to 
                                service loans under section 456 of the 
                                Higher Education Act of 1965,
                                    ``(II) any entity that is a lender 
                                of loans made, insured, or guaranteed 
                                under part B of such Act,
                                    ``(III) any entity that provides 
                                student loan servicing for a lender 
                                described in subclause (II).''.
    (d) Termination of Authority.--Subparagraph (D) of section 
6103(l)(13) of the Internal Revenue Code of 1986 is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2019''.
    (e) Conforming Amendment.--The heading for paragraph (13) of 
section 6103(l) of such Code is amended by striking ``income contingent 
repayment of student loans'' and inserting ``auto-enrollment of 
delinquent student loan borrowers in income-based repayment plans''.
    (f) Application of Certain Rules to Loan Servicers.--
            (1) In general.--Paragraph (3) of section 6103(a) of the 
        Internal Revenue Code of 1986 is amended by inserting ``(13),'' 
        after ``(12),''.
            (2) Penalty for unauthorized inspection.--Subparagraph (B) 
        of section 7213A of such Code is amended by striking 
        ``subsection (l)(18) or (n) of'' and inserting ``paragraph (13) 
        or (18) of subsection (l) of, or subsection (n) of,''.
            (3) Records of inspection and disclosure.--Subparagraph (A) 
        of section 6103(p)(3) of such Code is amended--
                    (A) by striking ``(13),'' and
                    (B) by inserting after the second sentence the 
                following new sentence: ``The Secretary of Education 
                shall supply the Secretary with such information as is 
                necessary to carry out this paragraph as it relates to 
                section 6103(l)(13).''.
            (4) Safeguards.--Paragraph (4) of section 6103(p) of such 
        Code is amended by inserting ``(13),'' after ``(l)(10),'' each 
        place it appears.
    (g) Effective Date.--The amendments made by this section shall 
apply to requests made by the Secretary of Education after the date of 
the enactment of this Act.

               PART C--TITLE 11 OF THE UNITED STATES CODE

SEC. 1031. PRIVATE LOAN DISCHARGE IN BANKRUPTCY.

    Section 523(a)(8) of title 11, United States Code, is amended by 
striking ``dependents, for'' and all that follows through the end of 
subparagraph (B) and inserting ``dependents, for an educational benefit 
overpayment or loan made, insured, or guaranteed by a governmental unit 
or made under any program funded in whole or in part by a governmental 
unit or an obligation to repay funds received from a governmental unit 
as an educational benefit, scholarship, or stipend;''.

                PART D--SERVICEMEMBERS CIVIL RELIEF ACT

SEC. 1041. MODIFICATION OF LIMITATION ON RATE OF INTEREST ON STUDENT 
              LOANS DURING AND IMMEDIATELY AFTER PERIOD OF MILITARY 
              SERVICE.

    (a) Extension of Period of Applicability of Limitation on Rate of 
Interest on Student Loans Incurred Before Service.--Section 207(a)(1) 
of the Servicemembers Civil Relief Act (50 U.S.C. App. 527(a)(1)) is 
amended--
            (1) in subparagraph (A), by inserting ``or a student loan'' 
        after ``nature of a mortgage''; and
            (2) in the paragraph heading, by inserting ``on debt 
        incurred before service'' after ``Limitation to 6 percent''.
    (b) Debt Entered Into During Military Service To Consolidate or 
Refinance Student Loans Incurred Before Military Service.--Subsection 
(a) of section 207 of such Act (50 U.S.C. App. 527) is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(2) Limitation to 6 percent on debt incurred during 
        service to consolidate or refinance student loans incurred 
        before service.--An obligation or liability bearing interest at 
        a rate in excess of 6 percent per year that is incurred by a 
        servicemember, or the servicemember and the servicemember's 
        spouse jointly, during military service to consolidate or 
        refinance one or more student loans incurred by the 
        servicemember before such military service shall not bear an 
        interest at a rate in excess of 6 percent during the period of 
        military service and one year thereafter.'';
            (3) in paragraph (3), as redesignated by paragraph (1) of 
        this subsection, by inserting ``or (2)'' after ``paragraph 
        (1)''; and
            (4) in paragraph (4), as so redesignated, by striking 
        ``paragraph (2)'' and inserting ``paragraph (3)''.
    (c) Implementation of Limitation.--Subsection (b) of such section 
is amended--
            (1) in paragraph (1), by striking ``the interest rate 
        limitation in subsection (a)'' and inserting ``an interest rate 
        limitation in paragraph (1) or (2) of subsection (a)''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by striking ``as of 
                date of order to active duty''; and
                    (B) by inserting before the period at the end the 
                following: ``in the case of an obligation or liability 
                covered by subsection (a)(1), or as of the date the 
                servicemember (or servicemember and spouse jointly) 
                incurs the obligation or liability concerned under 
                subsection (a)(2)''.
    (d) Student Loan Defined.--Subsection (d) of such section is 
amended by adding at the end the following new paragraph:
            ``(3) Student loan.--The term `student loan' means the 
        following:
                    ``(A) A Federal student loan made, insured, or 
                guaranteed under title IV of the Higher Education Act 
                of 1965 (20 U.S.C. 1070 et seq.).
                    ``(B) A student loan made pursuant to title VII or 
                VIII of the Public Health Service Act (42 U.S.C. 292 et 
                seq. and 296 et seq.).
                    ``(C) A private student loan as that term is 
                defined in section 140(a) of the Truth in Lending Act 
                (15 U.S.C. 1650(a)).''.

              PART E--UNITED STATES INSTITUTE OF PEACE ACT

SEC. 1051. UNITED STATES INSTITUTE OF PEACE ACT.

    Section 1710(a)(1) of the United States Institute of Peace Act (22 
U.S.C. 4609(a)(1)) is amended by striking ``to be appropriated'' and 
all that follows through the period at the end and inserting ``to be 
appropriated such sums as may be necessary for fiscal years 2015 
through 2019''.

        TITLE XI--REPORTS, STUDIES, AND MISCELLANEOUS PROVISIONS

SEC. 1101. CONSUMER PROTECTIONS FOR STUDENTS.

    (a) In General.--
            (1) Definitions.--In this section:
                    (A) Federal financial assistance program.--The term 
                ``Federal financial assistance program'' means a 
                program authorized and funded by the Federal Government 
                under any of the following provisions of law:
                            (i) Title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.).
                            (ii) Title I of the Workforce Investment 
                        Act of 1998 (29 U.S.C. 2801 et seq.) or title I 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3111 et seq.).
                            (iii) The Adult Education and Family 
                        Literacy Act (29 U.S.C. 3101 note et seq.).
                            (iv) Chapter 30, 31, 32, 33, 34, or 35 of 
                        title 38, United States Code.
                            (v) Chapter 101, 105, 106A, 1606, 1607, or 
                        1608 of title 10, United States Code.
                            (vi) Section 1784a, 2005, or 2007 of title 
                        10, United States Code.
                    (B) Institution of higher education.--The term 
                ``institution of higher education''--
                            (i) with respect to a program authorized 
                        under subparagraph (A)(i), has the meaning 
                        given the term in section 102 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1002);
                            (ii) with respect to a program authorized 
                        under title I of the Workforce Investment Act 
                        of 1998 (29 U.S.C. 2801 et seq.), has the 
                        meaning given the term ``postsecondary 
                        educational institution'' as defined in section 
                        101 of the Workforce Investment Act of 1998 (29 
                        U.S.C. 2801), and with respect to a program 
                        authorized under title I of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 3111 
                        et seq.), has the meaning given the term 
                        ``institution of higher education'' as defined 
                        in section 3 of the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3102);
                            (iii) with respect to a program authorized 
                        under subparagraph (A)(iii), has the meaning 
                        given the term ``postsecondary educational 
                        institution'' as defined in section 203 of the 
                        Adult Education and Family Literacy Act (29 
                        U.S.C. 3272);
                            (iv) with respect to a program authorized 
                        under subparagraph (A)(iv), has the meaning 
                        given the term ``educational institution'' 
                        under section 3452 of title 38, United States 
                        Code;
                            (v) with respect to a program authorized 
                        under subparagraph (A)(v), means an educational 
                        institution that awards a degree or certificate 
                        and is located in any State; and
                            (vi) with respect to a program authorized 
                        under subparagraph (A)(vi), means an 
                        educational institution that awards a degree or 
                        certificate and is located in any State.
                    (C) State.--
                            (i) State.--The term ``State'' includes, in 
                        addition to the several States of the United 
                        States, the Commonwealth of Puerto Rico, the 
                        District of Columbia, Guam, American Samoa, the 
                        United States Virgin Islands, the Commonwealth 
                        of the Northern Mariana Islands, and the freely 
                        associated States.
                            (ii) Freely associated states.--The term 
                        ``freely associated States'' means the Republic 
                        of the Marshall Islands, the Federated States 
                        of Micronesia, and the Republic of Palau.
            (2) Consumer protections.--Notwithstanding any other 
        provision of law, an institution of higher education is not 
        eligible to participate in a Federal financial assistance 
        program with respect to any program of postsecondary education 
        or training, including a degree or certificate program, that is 
        designed to prepare students for entry into a recognized 
        occupation or profession that requires licensing or other 
        established requirements as a condition for entry into such 
        occupation or profession, unless, by not later than 1 year 
        after the date of enactment of this Act--
                    (A) the successful completion of the program fully 
                qualifies a student, in the Metropolitan Statistical 
                Area in which the student resides (and in any State in 
                which the institution indicates, through advertising or 
                marketing activities or direct contact with potential 
                students, that a student will be prepared to work in 
                the occupation or profession after successfully 
                completing the program), to--
                            (i) take any examination required for entry 
                        into the recognized occupation or profession in 
                        the Metropolitan Statistical Area and State in 
                        which the student resides, including satisfying 
                        all State or professionally mandated 
                        programmatic and specialized accreditation 
                        requirements, if any; and
                            (ii) be certified or licensed or meet any 
                        other academically related conditions that are 
                        required for entry into the recognized 
                        occupation or profession in the State; and
                    (B) the institution offering the program provides 
                timely placement for all of the academically related 
                pre-licensure requirements for entry into the 
                recognized occupation or profession, such as clinical 
                placements, internships, or apprenticeships.
            (3) Regulations on programs in preaccreditation status.--
        The Secretary of Education shall promulgate regulations on 
        requirements of an institution of higher education with respect 
        to any program of the institution that is in a preaccredited 
        status, including limitations on, or requirements of, 
        advertisement of the program to students. Such regulations 
        shall be consistent with the provisions of paragraph (2).
            (4) Loan discharge.--The Secretary of Education shall 
        promulgate regulations that condition eligibility for an 
        institution of higher education to participate in any Federal 
        financial assistance program on the institution signing with 
        each student enrolled in any program of the institution that is 
        in a preaccredited status, a loan discharge agreement.
    (b) Effective Date.--This section shall take effect on the date 
that is 1 year after the date of enactment of this Act.

SEC. 1102. LONGITUDINAL STUDY OF THE EFFECTIVENESS OF STUDENT LOAN 
              COUNSELING.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Education and the Director of the Bureau 
of Consumer Financial Protection, acting through the Director of the 
Institute of Education Sciences, shall begin conducting a rigorous 
longitudinal study of the impact and effectiveness of student loan 
counseling, as provided in accordance with subsections (b), (l), and 
(n) of section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) 
and through such other means of providing student loan counseling 
services as the Secretary may determine.
    (b) Contents.--The longitudinal study shall include borrower 
information, in the aggregate and disaggregated by race, ethnicity, 
gender, income, and status as an individual with a disability, about--
            (1) student persistence;
            (2) degree attainment;
            (3) program completion;
            (4) successful entry into student loan repayment;
            (5) cumulative borrowing levels; and
            (6) such other factors as the Secretary may determine.
    (c) Interim Reports.--Not later than 18 months after the 
commencement of the study described under this section, and annually 
thereafter, the Secretary shall evaluate the progress of the study and 
report any short-term findings to the appropriate committees of 
Congress.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 4 succeeding fiscal years.

SEC. 1103. RECOMMENDATIONS FOR STUDENT LOAN COUNSELING.

    The Secretary of the Treasury, acting through the President's 
Advisory Council on Financial Capability and the Financial Literacy and 
Education Commission, shall prepare and submit to Congress and to the 
Secretary of Education a report containing recommendations about 
information, including methods and strategies for conveying such 
information to borrowers in order to ensure comprehension, that should 
be included in financial literacy counseling for first-time student 
loan borrowers.

SEC. 1104. WORKING GROUP ON IMPROVEMENT OF RESOURCES AVAILABLE TO 
              MEMBERS OF THE ARMED FORCES AND THEIR SPOUSES IN USING 
              TUITION ASSISTANCE PROGRAMS OF THE DEPARTMENT OF DEFENSE.

    (a) Working Group Required.--The Secretary of Education, the 
Secretary of Defense, the Secretary of Veterans Affairs, and the 
Director of the Bureau of Consumer Financial Protection shall jointly, 
and in consultation with the heads of such other departments and 
agencies of the Federal Government as such officials consider 
appropriate, establish and maintain a working group to assess and 
improve the resources available to education service officers and other 
personnel of the Federal Government who provide assistance to members 
of the Armed Forces and their spouses in using or seeking to use the 
tuition assistance programs of the Department of Defense.
    (b) Resources.--In improving resources as described in subsection 
(a), the working group shall provide for the inclusion of the following 
in such resources:
            (1) Information on the benefits and protections for members 
        of the Armed Forces and their dependents provided in this Act 
        and the amendments made by this Act.
            (2) Consumer information, resources, and tools created and 
        maintained by the working group pursuant to this section.
            (3) Information on the availability of consumer protection 
        measures, including the complaint system established pursuant 
        to Executive Order 13607 (77 Fed. Reg. 25861; relating to 
        establishing principles of excellence for educational 
        institutions serving servicemembers, veterans, spouses, and 
        other family members).
            (4) Such other information or resources as the working 
        group considers appropriate.

SEC. 1105. STUDY ON PUBLIC SERVICE LOAN FORGIVENESS.

    (a) In General.--By not later than 1 year after the date of 
enactment of this Act, the Secretary shall, in consultation with the 
Director of the Bureau of Consumer Financial Protection, prepare and 
submit to the Committee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and the Workforce of the 
House of Representatives a report evaluating the effectiveness of the 
public service loan forgiveness program under section 455(m) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(m)).
    (b) Contents.--The report required under subsection (a) shall 
include--
            (1) an analysis of total borrowing for prospective 
        recipients of loan forgiveness under section 455(m) of the 
        Higher Education Act of 1965 (20 U.S.C. 1087e(m)), including 
        participants that have completed the certification form 
        developed by the Secretary pursuant to such section;
            (2) an analysis of the public service entities employing 
        prospective recipients of loan forgiveness under such section, 
        including public service organizations identified on the 
        certification forms developed by the Secretary pursuant to such 
        section;
            (3) an analysis of the impact of the availability of public 
        service loan forgiveness under such section on the utilization 
        of other benefits established to encourage or reward public 
        service employment under title IV of the Higher Education Act 
        of 1965 (20 U.S.C. 1070), including the programs established 
        under sections 428J, 460, and 465 of such Act (20 U.S.C. 1078-
        10, 1087j, and 1087ee);
            (4) an analysis of the impact public service loan 
        forgiveness under section 455(m) of such Act has had on the 
        existence of loan repayment assistance programs offered by 
        institutions of higher education for students employed in 
        public service;
            (5) an evaluation of the impact of the public service loan 
        forgiveness program under such section on total tuition and 
        fees at institutions where the Secretary finds a reasonable 
        number of borrowers are both--
                    (A) prospective recipients of loan forgiveness 
                under section 455(m), as described in paragraph (1); 
                and
                    (B) recipients of an award under a loan repayment 
                assistance program made by an institution of higher 
                education described in paragraph (4);
            (6) an evaluation of the impact of borrowers described in 
        paragraph (5) on total program costs for the public service 
        loan forgiveness program under section 455(m); and
            (7) an evaluation of the cost and feasibility of altering 
        the public service loan forgiveness program carried out under 
        section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 
        1087e(m)) in order to allow a proportionate percentage of loan 
        cancellation for each year of public service that the 
        individual completes, and a comparison of the estimated costs 
        of such a prorated program with the estimated costs of the 
        public service loan forgiveness program carried out under such 
        section 455(m), as in effect on the date of the study.

SEC. 1106. LONGITUDINAL STUDY OF THE CAUSES OF STUDENT LOAN DEFAULT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Education and the Director of the Bureau 
of Consumer Financial Protection, acting through the Director of the 
Institute of Education Sciences, shall begin conducting a rigorous 
longitudinal study of the causes of default on loans made, insured, or 
guaranteed under part B, D, or E of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.).
    (b) Contents.--The longitudinal study shall include--
            (1) information about borrowers of loans described in 
        subsection (a), disaggregated by age, race, ethnicity, gender, 
        status as an individual with a disability, and status as a low-
        income individual, regarding possible risk factors for default, 
        including--
                    (A) the type of institution attended by the 
                borrower;
                    (B) the degree or program in which the borrower was 
                enrolled;
                    (C) educational attainment level;
                    (D) personal and financial circumstances;
                    (E) employment status;
                    (F) types of loans held by the borrower;
                    (G) the interest rate on outstanding loans held by 
                the borrower;
                    (H) the repayment plan selected by the borrower;
                    (I) loan servicing difficulties;
                    (J) outstanding debt level; and
                    (K) such other factors as the Secretary and 
                Director of the Bureau of Consumer Financial Protection 
                may determine;
            (2) consideration of the relevance of the possible risk 
        factors; and
            (3) policy recommendations designed to decrease the 
        likelihood of student loan default.
    (c) Reports.--
            (1) Interim reports.--Not later than 18 months after the 
        commencement of the study described under this section, and 
        annually thereafter, the Secretary shall evaluate the progress 
        of the study and report any short-term findings to the 
        appropriate committees of Congress.
            (2) Final report.--Upon completion of the study described 
        under this section, the Secretary shall prepare and submit a 
        final report regarding the findings of the study to the 
        appropriate committees of Congress.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 4 succeeding fiscal years.

SEC. 1107. INSTITUTIONAL RISK-SHARING COMMISSION.

    (a) Establishment of Commission.--
            (1) In general.--The Secretary of Education shall establish 
        an Institutional Risk-Sharing Commission (referred to in this 
        section as the ``Commission'') whose members shall be selected 
        by the Secretary and comprised of the following relevant 
        stakeholders:
                    (A) 2 representatives of national or regional 
                student advocacy organizations with a track record of 
                engagement and expertise on issues related to college 
                costs, consumer protection, and institutional 
                accountability and an alternate member.
                    (B) 1 student representative who is attending an 
                institution of higher education on the date of the 
                selection and an alternate member.
                    (C) 1 member of the Bureau of Consumer Financial 
                Protection with demonstrated knowledge of student loan 
                borrowing and an alternate member.
                    (D) 2 administrative officers from different types 
                of institutions of higher education and an alternate 
                member.
                    (E) 1 higher education researcher and an alternate 
                member.
                    (F) 1 State postsecondary education data system 
                director and an alternate member.
                    (G) 1 representative from the National Center for 
                Education Statistics and an alternate member.
                    (H) 1 representative from the Government 
                Accountability Office and an alternate member.
                    (I) 1 representative from the Department of the 
                Treasury and an alternate member.
            (2) Functions.--Each member selected under paragraph (1) 
        shall participate for the purpose of determining agreement by 
        majority vote on the Commission on the report and its contents 
        described in paragraph (4). Each alternate member shall 
        participate for the purpose of determining the majority vote in 
        the absence of the member. Either the member or an alternate 
        member may speak during the negotiations. In the event that the 
        Commission is unable to form agreement on the contents of the 
        report by majority vote, the contents of the report shall be 
        determined by a plurality vote.
    (b) Study.--
            (1) In general.--Not later than 270 days after the date 
        that all members of the Commission have been selected under 
        subsection (a), the Commission shall complete a study and 
        develop recommendations for implementation of a new risk-
        sharing system for institutions of higher education that 
        participate in the Federal Direct Loan Program under part D of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
        et seq.) through which institutions would be held financially 
        accountable for poor student outcomes.
            (2) Content of study.--In conducting the study required 
        under paragraph (1), the Commission shall, at a minimum, 
        consider the following issues:
                    (A) Identifying an annual measure or set of 
                measures for the risk-sharing system that would provide 
                the most accurate assessment of an institution's level 
                of success or failure at providing their students with 
                basic educational outcomes, such as degree completion, 
                ability to repay loans made, insured, or guaranteed 
                under title IV of the Higher Education Act of 1965 (20 
                U.S.C. 1070 et seq.), post-graduation employment, and 
                post-graduation earnings. Such possible measures may 
                include cohort default rates, loan repayment rates, 
                graduation rates, graduate earnings, and other measure 
                that the Commission considers an accurate reflection of 
                student outcomes, regardless of the feasibility of 
                access to the data required to implement collection of 
                such measures.
                    (B) What specific metrics would require the lowest 
                performing institutions to make annual payments into 
                the risk-sharing system, and what metrics would exempt 
                institutions from making an annual risk-sharing payment 
                based on performance measures that exceeded a minimum 
                level (which level would be identified by the 
                Commission).
                    (C) How the payments for each institution should be 
                calculated, including whether the use of a percentage 
                of Federal Direct Loans disbursed the year prior to 
                identification, the percentage of loans in default, or 
                any other calculation should be used.
                    (D) Whether a sliding scale of payments should be 
                required of institutions based on their performance on 
                the identified measures.
                    (E) Any legislative safeguards or mechanisms to 
                ensure that an institution required to participate in 
                the risk-sharing system would not pass any prospective 
                costs directly or indirectly onto students, or limit 
                access to low-income students.
                    (F) How an institution's level of access to low-
                income students (such as measured by the percentage of 
                students enrolled at the institution who receive 
                Federal Pell Grants under subpart 1 of part A of title 
                IV of the Higher Education Act of 1965 (20 U.S.C. 1070a 
                et seq.)) and affordability (as measured by average net 
                price) should be considered in the risk-sharing system.
                    (G) Specifying a means for the risk-sharing system 
                payments to go primarily towards students in default, 
                additional aid to low-income students, or any other 
                form of aid to student borrowers most in need, 
                including after degree completion.
                    (H) Whether any extraordinary consideration exists 
                that warrants allowing a waiver process through which a 
                very limited number of institutions would be eligible 
                to apply for a waiver from a risk-sharing payment on a 
                yearly basis, and under what conditions.
            (3) Outside recommendations.--As part of the study required 
        under paragraph (1), the Commission shall develop a public 
        process for soliciting recommendations for the risk-sharing 
        system and shall consider these recommendations as part of the 
        study. The Commission shall factor in any financial or other 
        interests of any submitting party in weighing and considering 
        such recommendations.
            (4) Report.--
                    (A) Content.--Not later than 90 days after 
                completing the study required under paragraph (1), the 
                Commission shall issue, by majority vote, or if unable 
                to achieve a majority vote, then a plurality vote, a 
                report regarding its recommendations for a risk-sharing 
                system. The report shall include the following:
                            (i) A description of the Commission's 
                        findings as to the issues described in 
                        paragraph (2).
                            (ii) A data analysis using the Commission's 
                        recommended metrics that demonstrates how each 
                        institution of higher education that 
                        participates in the Federal Direct Loan Program 
                        under part D of title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1087a et seq.) 
                        as of the period of the Commission's study 
                        would fare under the proposed risk-sharing 
                        system, including projections for the amounts 
                        of payments the lowest performing institutions 
                        would have to pay.
                            (iii) An evaluation of the feasibility and 
                        unintended consequences of implementing the 
                        recommended risk-sharing system, including any 
                        legislative or regulatory action needed to 
                        implement such a system.
                    (B) Availability.--The report described in 
                subparagraph (A) shall be--
                            (i) provided to the Secretary of Education, 
                        the Committee on Health, Education, Labor, and 
                        Pensions of the Senate, and the Committee on 
                        Education and the Workforce of the House of 
                        Representatives; and
                            (ii) made publicly available.
    (c) Securing Information and Privacy.--
            (1) In general.--Subject to paragraph (2), the Commission 
        may secure directly from any Federal department or agency such 
        information as the Commission considers necessary to carry out 
        its duties under this section. The Commission may request the 
        head of any State or local department or agency to furnish such 
        information to the Commission.
            (2) Privacy.--Any Federal department or agency, State or 
        local department or agency, or institution of higher education 
        in providing information to the Commission under this section 
        shall not share any personally identifiable information and 
        shall act in accordance with section 444 of the General 
        Education Provisions Act (20 U.S.C. 1232g, commonly known as 
        the ``Family Educational Rights and Privacy Act of 1974'').

SEC. 1108. GAO REPORT ON EDUCATIONAL ATTAINMENT OF HOMELESS CHILDREN 
              AND YOUTH AND FOSTER CARE CHILDREN AND YOUTH.

    (a) Definitions.--In this section:
            (1) Foster care children and youth.--The term ``foster care 
        children and youth'' has the meaning given the term in section 
        103 of the Higher Education Act of 1965.
            (2) Homeless children and youth.--The term ``homeless 
        children and youth'' means children and youth who lack a fixed, 
        regular, and adequate nighttime residence and includes--
                    (A) children and youth who--
                            (i) are sharing the housing of other 
                        persons due to loss of housing, economic 
                        hardship, or a similar reason;
                            (ii) are living in motels, hotels, trailer 
                        parks, or camping grounds due to the lack of 
                        alternative adequate accommodations;
                            (iii) are living in emergency or 
                        transitional shelters;
                            (iv) are abandoned in hospitals; or
                            (v) are awaiting foster care placement;
                    (B) children and youth who have a primary nighttime 
                residence that is a public or private place not 
                designed for or ordinarily used as a regular sleeping 
                accommodation for human beings;
                    (C) children and youth who are living in cars, 
                parks, public spaces, abandoned buildings, substandard 
                housing, bus or train stations, or similar settings; 
                and
                    (D) migratory children (as such term is defined in 
                section 1309 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6399)) who are living in 
                circumstances described in subparagraph (A), (B), or 
                (C).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
    (b) In General.--Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States shall prepare 
and submit to the Committee on Health, Education, Labor, and Pensions 
of the Senate and the Committee on Education and the Workforce of the 
House of Representatives a report on the educational attainment of 
youth who are or have been homeless (including youth who are or have 
been homeless children and youth) and foster care children and youth.
    (c) Content.--The report described in subsection (b) shall contain 
a review and assessment of enrollment and completion data for both 
accompanied and unaccompanied homeless children and youth and foster 
care children and youth, including the following:
            (1) The percentage of such youth attending an institution 
        of higher education.
            (2) The percentage of such youth graduating from an 
        institution of higher education.
            (3) The average length of time taken to obtain an associate 
        or baccalaureate degree.
            (4) The percentage of such youth attending--
                    (A) a public institution of higher education;
                    (B) a private institution of higher education;
                    (C) a community college; and
                    (D) a 4-year institution of higher education.
            (5) Reasons why such youth choose not to pursue a higher 
        education.
            (6) The availability of public and private tuition 
        assistance specifically for such youth and the awareness among 
        such youth of such tuition assistance.
            (7) The availability of other public or private programs 
        designed to encourage and support enrollment in, and completion 
        of, higher education for such youth.
            (8) Ways in which the Department of Education might 
        increase the educational attainment rates of such youth.

SEC. 1109. AMERICAN DREAM ACCOUNTS.

    (a) Short Title.--This section may be cited as the ``American Dream 
Accounts Act''.
    (b) Definitions.--In this section:
            (1) American dream account.--The term ``American Dream 
        Account'' means a personal online account for low-income 
        students that monitors higher education readiness and includes 
        a college savings account.
            (2) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means the Committee on 
        Health, Education, Labor, and Pensions, the Committee on 
        Appropriations, and the Committee on Finance of the Senate, and 
        the Committee on Education and the Workforce, the Committee on 
        Appropriations, and the Committee on Ways and Means of the 
        House of Representatives, as well as any other Committee of the 
        Senate or House of Representatives that the Secretary 
        determines appropriate.
            (3) Charter school.--The term ``charter school'' has the 
        meaning given such term in section 5210 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7221i).
            (4) College savings account.--The term ``college savings 
        account'' means a savings account that--
                    (A) provides some tax-preferred accumulation;
                    (B) is widely available (such as Qualified Tuition 
                Programs under section 529 of the Internal Revenue Code 
                of 1986 or Coverdell Education Savings Accounts under 
                section 530 of the Internal Revenue Code of 1986); and
                    (C) contains funds that may be used only for the 
                costs associated with attending an institution of 
                higher education, including--
                            (i) tuition and fees;
                            (ii) room and board;
                            (iii) textbooks;
                            (iv) supplies and equipment; and
                            (v) Internet access.
            (5) Dual enrollment program.--The term ``dual enrollment 
        program'' means a program of study--
                    (A) provided by an institution of higher education 
                through which a student who has not graduated from 
                secondary school with a regular high school diploma is 
                able to earn secondary school credit and postsecondary 
                credit that is accepted as credit towards a 
                postsecondary degree or credential at no cost to the 
                participant or the participant's family; and
                    (B) that shall consist of not less than 2 
                postsecondary credit-bearing courses and support and 
                academic services that help a student persist and 
                complete such courses.
            (6) Early college high school.--The term ``early college 
        high school program'' means a formal partnership between at 
        least 1 local educational agency and at least 1 institution of 
        higher education that allows students to simultaneously 
        complete, as part of an organized course of study, requirements 
        towards earning a regular high school diploma and earning not 
        less than 12 transferable postsecondary credits that are 
        accepted as credit towards a postsecondary degree or credential 
        at no cost to the participant or the participant's family.
            (7) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State educational agency;
                    (B) a local educational agency, including a charter 
                school that operates as its own local educational 
                agency;
                    (C) a charter management organization or charter 
                school authorizer;
                    (D) an institution of higher education;
                    (E) a nonprofit organization;
                    (F) an entity with demonstrated experience in 
                educational savings or in assisting low-income students 
                to prepare for, and attend, an institution of higher 
                education; or
                    (G) a consortium of 2 or more of the entities 
                described in subparagraphs (A) through (F).
            (8) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (9) Local educational agency.--The term ``local educational 
        agency'' has the meaning given such term in section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (10) Low-income student.--The term ``low-income student'' 
        means a student who is eligible to receive a free or reduced 
        price lunch under the Richard B. Russell National School Lunch 
        Act (42 U.S.C. 1751 et seq.).
            (11) Parent.--The term ``parent'' has the meaning given 
        such term in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            (12) Secretary.--The term ``Secretary'' has the meaning 
        given such term in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            (13) State educational agency.--The term ``State 
        educational agency'' has the meaning given such term in section 
        9101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
    (c) Grant Program.--
            (1) Program authorized.--The Secretary is authorized to 
        award grants, on a competitive basis, to eligible entities to 
        enable such eligible entities to establish and administer 
        American Dream Accounts for a group of low-income students.
            (2) Reservation.--From the amounts appropriated each fiscal 
        year to carry out this section, the Secretary shall reserve not 
        more than 5 percent of such amount to carry out the evaluation 
        activities described in subsection (f)(1).
            (3) Duration.--A grant awarded under this section shall be 
        for a period of not more than 3 years. The Secretary may extend 
        such grant for an additional 2-year period if the Secretary 
        determines that the eligible entity has demonstrated 
        significant progress, based on the factors described in 
        subsection (d)(2)(K).
    (d) Applications; Priority.--
            (1) In general.--Each eligible entity desiring a grant 
        under this section shall submit an application to the Secretary 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
            (2) Contents.--At a minimum, the application described in 
        paragraph (1) shall include the following:
                    (A) A description of the characteristics of a group 
                of not less than 30 low-income public school students 
                who--
                            (i) are, at the time of the application, 
                        attending a grade not higher than grade 9; and
                            (ii) will, under the grant, receive an 
                        American Dream Account.
                    (B) A description of how the eligible entity will 
                engage, and provide support (such as tutoring and 
                mentoring for students, and training for teachers and 
                other stakeholders) either online or in person, to--
                            (i) the students in the group described in 
                        subparagraph (A);
                            (ii) the family members and teachers of 
                        such students; and
                            (iii) other stakeholders such as school 
                        administrators and school counselors.
                    (C) An identification of partners who will assist 
                the eligible entity in establishing and sustaining 
                American Dream Accounts.
                    (D) A description of what experience the eligible 
                entity or the partners of the eligible entity have in 
                managing college savings accounts, preparing low-income 
                students for postsecondary education, managing online 
                systems, and teaching financial literacy.
                    (E) A demonstration that the eligible entity has 
                sufficient resources to provide an initial deposit into 
                the college savings account portion of each American 
                Dream Account.
                    (F) A description of how the eligible entity will 
                help increase the value of the college savings account 
                portion of each American Dream Account, such as by 
                providing matching funds or incentives for academic 
                achievement.
                    (G) A description of how the eligible entity will 
                notify each participating student in the group 
                described in subparagraph (A), on a semiannual basis, 
                of the current balance and status of the college 
                savings account portion of the American Dream Account 
                of the student.
                    (H) A plan that describes how the eligible entity 
                will monitor participating students in the group 
                described in subparagraph (A) to ensure that the 
                American Dream Account of each student will be 
                maintained if a student in such group changes schools 
                before graduating from secondary school.
                    (I) A plan that describes how the American Dream 
                Accounts will be managed for not less than 1 year after 
                a majority of the students in the group described in 
                subparagraph (A) graduate from secondary school.
                    (J) A description of how the eligible entity will 
                encourage students in the group described in 
                subparagraph (A) who fail to graduate from secondary 
                school to continue their education.
                    (K) A description of how the eligible entity will 
                evaluate the grant program, including by collecting, as 
                applicable, the following data about the students in 
                the group described in subparagraph (A) during the 
                grant period, or until the time of graduation from a 
                secondary school, whichever comes first, and, if 
                sufficient grant funds are available, after the grant 
                period:
                            (i) Attendance rates.
                            (ii) Progress reports.
                            (iii) Grades and course selections.
                            (iv) The student graduation rate, as 
                        defined in section 1111(b)(2)(C)(vi) of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 6311(b)(2)(C)(vi)).
                            (v) Rates of student completion of the Free 
                        Application for Federal Student Aid described 
                        in section 483 of the Higher Education Act of 
                        1965 (20 U.S.C. 1090).
                            (vi) Rates of enrollment in an institution 
                        of higher education.
                            (vii) Rates of completion at an institution 
                        of higher education.
                    (L) A description of what will happen to the funds 
                in the college savings account portion of the American 
                Dream Accounts that are dedicated to participating 
                students described in subparagraph (A) who have not 
                matriculated at an institution of higher education at 
                the time of the conclusion of the period of American 
                Dream Account management described in subparagraph (I), 
                including how the eligible entity will give students 
                this information.
                    (M) A description of how the eligible entity will 
                ensure that funds in the college savings account 
                portion of the American Dream Accounts will not make 
                families ineligible for public assistance.
                    (N) A description of how the eligible entity will 
                ensure that participating students described in 
                subparagraph (A) will have access to the Internet.
            (3) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to applications from eligible 
        entities that--
                    (A) are described in subsection (b)(7)(G);
                    (B) serve the largest number of low-income 
                students;
                    (C) in the case of an eligible entity described in 
                subparagraph (A) or (B) of subsection (b)(7), provide 
                opportunities for participating students described in 
                paragraph (2)(A) to participate in a dual enrollment 
                program or early college high school program at no cost 
                to the student; or
                    (D) as of the time of application, have been 
                awarded a grant under chapter 2 of subpart 2 of part A 
                of title IV of the Higher Education Opportunity Act (20 
                U.S.C. 1070a-21 et seq.) (commonly referred to as the 
                ``GEAR UP program'').
    (e) Authorized Activities.--
            (1) In general.--An eligible entity that receives a grant 
        under this section shall use such grant funds to establish an 
        American Dream Account for each participating student described 
        in subsection (d)(2)(A), that will be used to--
                    (A) open a college savings account for such 
                student;
                    (B) monitor the progress of such student online, 
                which--
                            (i) shall include monitoring student data 
                        relating to--
                                    (I) grades and course selections;
                                    (II) progress reports; and
                                    (III) attendance and disciplinary 
                                records; and
                            (ii) may also include monitoring student 
                        data relating to a broad range of information, 
                        provided by teachers and family members, 
                        related to postsecondary education readiness, 
                        access, and completion;
                    (C) provide opportunities for such students, either 
                online or in person, to learn about financial literacy, 
                including by assisting such students in financial 
                planning for enrollment in an institution of higher 
                education; and
                    (D) provide opportunities for such students, either 
                online or in person, to identify skills or interests, 
                including career interests.
            (2) Access to american dream account.--
                    (A) In general.--Subject to subparagraphs (C) and 
                (D), and in accordance with applicable Federal laws and 
                regulations relating to privacy of information and the 
                privacy of children, an eligible entity that receives a 
                grant under this section shall allow vested 
                stakeholders, as described in subparagraph (B), to have 
                secure access, through an Internet website, to each 
                American Dream Account.
                    (B) Vested stakeholders.--The vested stakeholders 
                that an eligible entity shall permit to access an 
                American Dream Account are individuals (such as the 
                student's teachers, school counselors, school 
                administrators, or other individuals) that are 
                designated, in accordance with section 444 of the 
                General Education Provisions Act (20 U.S.C. 1232g, 
                commonly known as the ``Family Educational Rights and 
                Privacy Act of 1974''), by the parent of a 
                participating student in whose name such American Dream 
                Account is held, as having permission to access the 
                account. A student's parent may withdraw such 
                designation from an individual at any time.
                    (C) Exception for college savings account.--An 
                eligible entity that receives a grant under this 
                section shall not be required to give vested 
                stakeholders, as described in subparagraph (B), access 
                to the college savings account portion of a student's 
                American Dream Account.
                    (D) Adult students.--Notwithstanding subparagraphs 
                (A), (B), and (C), if a participating student is age 18 
                or older, an eligible entity that receives a grant 
                under this section shall not provide access to such 
                participating student's American Dream Account without 
                the student's consent, in accordance with section 444 
                of the General Education Provisions Act (20 U.S.C. 
                1232g, commonly known as the ``Family Educational 
                Rights and Privacy Act of 1974'').
                    (E) Input of student information.--Student data 
                collected pursuant to paragraph (1)(B)(i) shall be 
                entered into an American Dream Account only by a school 
                administrator or the designee of such administrator.
            (3) Prohibition on use of student information.--An eligible 
        entity that receives a grant under this section shall not use 
        any student-level information or data for the purpose of 
        soliciting, advertising, or marketing any financial or non-
        financial consumer product or service that is offered by such 
        eligible entity, or on behalf of any other person.
            (4) Prohibition on the use of grant funds.--An eligible 
        entity shall not use grant funds provided under this section to 
        provide the initial deposit into a college savings account 
        portion of a student's American Dream Account.
    (f) Reports and Evaluations.--
            (1) In general.--Not later than 1 year after the Secretary 
        has disbursed grants under this section, and annually 
        thereafter until each grant disbursed under subsection (c) has 
        ended, the Secretary shall prepare and submit a report to the 
        appropriate committees of Congress, which shall include an 
        evaluation of the effectiveness of the grant program 
        established under this section.
            (2) Contents.--The report described in paragraph (1) 
        shall--
                    (A) list the grants that have been awarded under 
                subsection (c)(1);
                    (B) include the number of students who have an 
                American Dream Account established through a grant 
                awarded under subsection (c)(1);
                    (C) provide data (including the interest accrued on 
                college savings accounts that are part of an American 
                Dream Account) in the aggregate, regarding students who 
                have an American Dream Account established through a 
                grant awarded under subsection (c)(1), as compared to 
                similarly situated students who do not have an American 
                Dream Account;
                    (D) identify best practices developed by the 
                eligible entities receiving grants under this section;
                    (E) identify any issues related to student privacy 
                and stakeholder accessibility to American Dream 
                Accounts;
                    (F) provide feedback from participating students 
                and the parents of such students about the grant 
                program, including--
                            (i) the impact of the program;
                            (ii) aspects of the program that are 
                        successful;
                            (iii) aspects of the program that are not 
                        successful; and
                            (iv) any other data required by the 
                        Secretary; and
                    (G) provide recommendations for expanding the 
                American Dream Accounts program.
    (g) Eligibility To Receive Federal Student Financial Aid.--
Notwithstanding any other provision of law, any funds that are in the 
college savings account portion of a student's American Dream Account 
shall not affect such student's eligibility to receive Federal student 
financial aid, including any Federal student financial aid under the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), and shall not be 
considered in determining the amount of any such Federal student aid.
    (h) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated such sums as may be necessary 
for fiscal year 2015 and each of the 4 succeeding fiscal years.

SEC. 1110. STUDY ON THE IMPACT OF FEDERAL FINANCIAL AID CHANGES ON 
              GRADUATE STUDENTS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Education, acting through the Director of 
the Institute of Education Sciences, shall begin conducting a study of 
the impact of recent policy changes to title IV of the Higher Education 
Act of 1965 on graduate students.
    (b) Purpose.--The purpose of the study is to examine the effects of 
significant changes in Federal student financial aid policy on access, 
affordability, and labor market outcomes for graduate students. The 
study shall include an exploration of the impact of the following 
significant changes:
            (1) The authorization of PLUS Loans for graduate students.
            (2) The elimination of Federal Direct Stafford Loans for 
        graduate students.
            (3) The increase in origination fees due to the 
        sequestration order issued under the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) 
        for fiscal year 2013.
            (4) Differentiation in interest rates between undergraduate 
        and graduate Federal Direct Unsubsidized Stafford loans.
            (5) Changes to the income-based repayment plan described 
        under section 493C (20 U.S.C. 1098e).
    (c) Contents.--The study shall include--
            (1) information about the effects of the changes described 
        in subsection (b) on graduate students, disaggregated by the 
        student's age, race, ethnicity, gender, income, status as an 
        individual with a disability, and type of institution of higher 
        education that the graduate student attended for such student's 
        graduate program (including 2-year or 4-year institution of 
        higher education, public or private institution of higher 
        education, and proprietary or nonprofit institution of higher 
        education); and
            (2) an examination of the effects of the changes described 
        in subsection (b) on--
                    (A) changes in graduate enrollment patterns (such 
                as increases or decreases in enrollment);
                    (B) net tuition and fees for graduate students;
                    (C) the aggregate amount of Federal student loan 
                debt resulting from graduate education, as a whole and 
                disaggregated by each type of Federal loan under title 
                IV;
                    (D) the median level of individual student loan 
                debt that is the result of graduate education (ensuring 
                that the amount of undergraduate student loan debt is 
                distinguished from the amount of graduate student loan 
                debt);
                    (E) default rates, and the range of amounts of 
                unpaid debt, for title IV loans for graduate students;
                    (F) the use of each type of loan repayment plan 
                under title IV, including income-based repayment, and 
                the median level of graduate student debt for 
                individuals in each repayment plan;
                    (G) the number of individuals who have a graduate 
                degree that enter public service jobs;
                    (H) the level of total educational debt for 
                graduate students, including Federal student loans and 
                private education loans;
                    (I) the correlation between high graduate student 
                debt levels and household consumption (including the 
                purchasing of homes and automobiles) and retirement 
                savings; and
                    (J) such other factors as the Secretary may 
                determine;
            (3) an analysis of how the effects of the changes described 
        in subsection (b) differ according to--
                    (A) whether an individual was or is attending 
                graduate school on a full-time or part-time basis; and
                    (B) whether an individual has or is pursuing a 
                master's degree, a doctorate research degree, or a 
                doctorate professional practice degree;
            (4) a detailed explanation of the impact of such changes on 
        students who were eligible for a Federal Pell Grant as an 
        undergraduate student, women, and traditionally 
        underrepresented populations; and
            (5) policy recommendations designed to improve access, 
        affordability, and labor market outcomes for graduate students.
    (d) Reports.--
            (1) Interim reports.--Not later than 18 months after the 
        commencement of the study described under this section, and 
        annually thereafter, the Secretary shall evaluate the progress 
        of the study and report any short-term findings to the 
        appropriate committees of Congress.
            (2) Final report.--Upon completion of the study described 
        under this section, the Secretary shall prepare and submit a 
        final report regarding the findings of the study to the 
        appropriate committees of Congress.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2015 and each of the 4 succeeding fiscal years.
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