II 

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. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Higher Education Af5 fordability Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 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. 

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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

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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. 

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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

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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 

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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. 

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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. 

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Higher Education Act of 

7 1965 (20 U.S.C. 1001 et seq.). 

8 SEC. 4. GENERAL EFFECTIVE DATE. 

9 Except as otherwise provided in this Act or the 

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1 ments made by this Act shall take effect on the date of 

2 enactment of this Act. 

3 TITLE I—GENERAL PROVISIONS 

4 SEC. 101. GRADUATE MEDICAL SCHOOLS; POSTSECONDARY 

5 CAREER AND TECHNICAL EDUCATION INSTI6 TUTIONS. 

7 (a) IN GENERAL.—Section 102 (20 U.S.C. 1002) is 

8 amended— 

9 (1) in subsection (a)— 

10 (A) in paragraph (1)(B), by striking ‘‘vo11 cational’’ and inserting ‘‘career and technical 

12 education’’; and 

13 (B) in paragraph (2)(A)— 

14 (i) in the matter preceding clause (i), 

15 by striking ‘‘part D of title IV unless—’’ 

16 and inserting ‘‘part D of title IV unless the 

17 school meets 1 of the following require18 ments:’’; 

19 (ii) by striking clause (i) and inserting 

20 the following: 

21 ‘‘(i) GRADUATE MEDICAL SCHOOL.— 

22 ‘‘(I) IN GENERAL.—In the case 

23 of a graduate medical school located 

24 outside the United States— 

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1 ‘‘(aa)(AA) not less than 60 

2 percent of those enrolled in, and 

3 not less than 60 percent of the 

4 graduates of, such graduate med5 ical school located outside the 

6 United States were not persons 

7 described in section 484(a)(5) in 

8 the year preceding the year for 

9 which a student is seeking a loan 

10 under part D of title IV; and 

11 ‘‘(BB) not less than 75 per12 cent of the individuals who were 

13 nationals of the United States 

14 who were students or graduates 

15 of the graduate medical school lo16 cated outside the United States 

17 or Canada taking the examina18 tions administered by the Edu19 cational Commission for Foreign 

20 Medical Graduates received a 

21 passing score in the year pre22 ceding the year for which a stu23 dent is seeking a loan under part 

24 D of title IV; or 

25 ‘‘(bb) the institution— 

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1 ‘‘(AA) has or had a 

2 clinical training program 

3 that was approved by a 

4 State as of January 1, 

5 1992; and 

6 ‘‘(BB) continues to op7 erate a clinical training pro8 gram in at least 1 State that 

9 is approved by that State. 

10 ‘‘(II) EXPIRATION OF ALTER11 NATIVE QUALIFICATION.—The author12 ity of a graduate medical school de13 scribed in subclause (I)(bb) to qualify 

14 for participation in the loan programs 

15 under part D of title IV pursuant to 

16 this clause shall expire beginning on 

17 the first July 1 following the date of 

18 enactment of the Higher Education 

19 Affordability Act.’’; 

20 (iii) in clause (ii)— 

21 (I) by striking ‘‘in the case of a 

22 veterinary school’’ and inserting 

23 ‘‘VETERINARY SCHOOL.—In the case 

24 of a veterinary school’’; and 

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1 (II) by striking ‘‘; or’’ and insert2 ing a period; and 

3 (iv) in clause (iii), by striking ‘‘in the 

4 case of a nursing school’’ and inserting 

5 ‘‘NURSING SCHOOL.—In the case of a 

6 nursing school’’; and 

7 (2) in subsection (c)— 

8 (A) in the subsection heading, by striking 

9 ‘‘VOCATIONAL’’ and inserting ‘‘CAREER AND

10 TECHNICAL EDUCATION’’; 

11 (B) in paragraph (1), by striking ‘‘voca12 tional’’ and inserting ‘‘career and technical edu13 cation’’; and 

14 (C) in paragraph (2), by striking ‘‘voca15 tional’’ and inserting ‘‘career and technical edu16 cation’’. 

17 (b) LOSS OF ELIGIBILITY.—If a graduate medical 

18 school loses eligibility to participate in the loan programs 

19 under part D of title IV of the Higher Education Act of 

20 1965 (20 U.S.C. 1087a et seq.) due to the enactment of 

21 the amendments made by subsection (a), then a student 

22 enrolled at such graduate medical school on or before the 

23 date of enactment of this Act may, notwithstanding such 

24 loss of eligibility, continue to be eligible to receive a loan 

25 under such part D while attending such graduate medical 

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1 school in which the student was enrolled upon the date 

2 of enactment of this Act, subject to the student continuing 

3 to meet all applicable requirements for satisfactory aca4 demic progress, until the earliest of— 

5 (1) withdrawal by the student from the grad6 uate medical school; 

7 (2) completion of the program of study by the 

8 student at the graduate medical school; or 

9 (3) the fourth June 30 after such loss of eligi10 bility. 

11 SEC. 102. 85–15 REVENUE SOURCE REQUIREMENT FOR PRO12 PRIETARY INSTITUTIONS. 

13 Section 102(b) (20 U.S.C. 1002(b)) is amended— 

14 (1) in paragraph (1)— 

15 (A) in subparagraph (D), by striking 

16 ‘‘and’’ after the semicolon; 

17 (B) in subparagraph (E), by striking the 

18 period and inserting ‘‘; and’’; and 

19 (C) by adding at the end the following: 

20 ‘‘(F) meets the requirements of paragraph 

21 (2).’’; 

22 (2) by redesignating paragraph (2) as para23 graph (3); and 

24 (3) by inserting after paragraph (1) the fol25 lowing: 

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1 ‘‘(2) REVENUE SOURCES.— 

2 ‘‘(A) IN GENERAL.—In order to qualify as 

3 a proprietary institution of higher education 

4 under this subsection, an institution shall derive 

5 not less than 15 percent of the institution’s rev6 enues from sources other than Federal funds, 

7 as calculated in accordance with subparagraphs 

8 (B) and (C). 

9 ‘‘(B) FEDERAL FUNDS.—In this para10 graph, the term ‘Federal funds’ means any 

11 Federal financial assistance provided, under 

12 this Act or any other Federal law, through a 

13 grant, contract, subsidy, loan, guarantee, insur14 ance, or other means to a proprietary institu15 tion, including Federal financial assistance that 

16 is disbursed or delivered to an institution or on 

17 behalf of a student or to a student to be used 

18 to attend the institution, except that such term 

19 shall not include any monthly housing stipend 

20 provided under chapter 33 of title 38, United 

21 States Code. 

22 ‘‘(C) CALCULATION OF REVENUE.—In 

23 making calculations under subparagraph (A), 

24 an institution of higher education shall— 

25 ‘‘(i) use the cash basis of accounting; 

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1 ‘‘(ii) consider as revenue only those 

2 funds generated by the institution from— 

3 ‘‘(I) tuition, fees, and other insti4 tutional charges for students enrolled 

5 in programs eligible for assistance 

6 under title IV; 

7 ‘‘(II) activities conducted by the 

8 institution that are necessary for the 

9 education and training of the institu10 tion’s students, if such activities are— 

11 ‘‘(aa) conducted on campus 

12 or at a facility under the control 

13 of the institution; 

14 ‘‘(bb) performed under the 

15 supervision of a member of the 

16 institution’s faculty; and 

17 ‘‘(cc) required to be per18 formed by all students in a spe19 cific educational program at the 

20 institution; and 

21 ‘‘(III) a contractual arrangement 

22 with a Federal agency for the purpose 

23 of providing job training to low-in24 come individuals who are in need of 

25 such training; 

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1 ‘‘(iii) presume that any Federal funds 

2 that are disbursed or delivered to an insti3 tution on behalf of a student or directly to 

4 a student will be used to pay the student’s 

5 tuition, fees, or other institutional charges, 

6 regardless of whether the institution cred7 its such funds to the student’s account or 

8 pays such funds directly to the student, ex9 cept to the extent that the student’s tui10 tion, fees, or other institutional charges are 

11 satisfied by— 

12 ‘‘(I) grant funds provided by an 

13 outside source that— 

14 ‘‘(aa) has no affiliation with 

15 the institution; and 

16 ‘‘(bb) shares no employees 

17 with the institution; and 

18 ‘‘(II) institutional scholarships 

19 described in clause (v); 

20 ‘‘(iv) include no loans made by an in21 stitution of higher education as revenue to 

22 the school, except for payments made by 

23 students on such loans; 

24 ‘‘(v) include a scholarship provided by 

25 the institution— 

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1 ‘‘(I) only if the scholarship is in 

2 the form of monetary aid based upon 

3 the academic achievements or finan4 cial need of students, disbursed to 

5 qualified student recipients during 

6 each fiscal year from an established 

7 restricted account; and 

8 ‘‘(II) only to the extent that 

9 funds in that account represent des10 ignated funds, or income earned on 

11 such funds, from an outside source 

12 that— 

13 ‘‘(aa) has no affiliation with 

14 the institution; and 

15 ‘‘(bb) shares no employees 

16 with the institution; and 

17 ‘‘(vi) exclude from revenues— 

18 ‘‘(I) the amount of funds the in19 stitution received under part C of title 

20 IV, unless the institution used those 

21 funds to pay a student’s institutional 

22 charges; 

23 ‘‘(II) the amount of funds the in24 stitution received under subpart 4 of 

25 part A of title IV; 

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1 ‘‘(III) the amount of funds pro2 vided by the institution as matching 

3 funds for any Federal program; 

4 ‘‘(IV) the amount of Federal 

5 funds provided to the institution to 

6 pay institutional charges for a student 

7 that were refunded or returned; and 

8 ‘‘(V) the amount charged for 

9 books, supplies, and equipment, unless 

10 the institution includes that amount 

11 as tuition, fees, or other institutional 

12 charges. 

13 ‘‘(D) REPORT TO CONGRESS.—Not later 

14 than July 1, 2015, and by July 1 of each suc15 ceeding year, the Secretary shall submit to the 

16 authorizing committees a report that contains, 

17 for each proprietary institution of higher edu18 cation that receives assistance under title IV 

19 and as provided in the audited financial state20 ments submitted to the Secretary by each insti21 tution pursuant to the requirements of section 

22 487(c)— 

23 ‘‘(i) the amount and percentage of 

24 such institution’s revenues received from 

25 Federal funds; and 

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1 ‘‘(ii) the amount and percentage of 

2 such institution’s revenues received from 

3 other sources.’’. 

4 SEC. 103. DEFINITIONS. 

5 Section 103 (20 U.S.C. 1003) is amended— 

6 (1) by redesignating paragraphs (4) through 

7 (9), (10) through (14), and (15) through (24), as 

8 paragraphs (5) through (10), (13) through (17), and 

9 (20) through (28), respectively; 

10 (2) by inserting after paragraph (3) the fol11 lowing: 

12 ‘‘(4) DEFAULT MANIPULATION.—The term ‘de13 fault manipulation’ means engaging in a device or 

14 practice, such as branching, consolidation of cam15 puses, consolidation or manipulation of the identi16 fication codes used by the Office of Postsecondary 

17 Education to designate campuses and institutions, 

18 change of ownership or control, serial forbearance, 

19 or any similar device or practice (as determined by 

20 the Secretary) when, but for the device or practice, 

21 one or more campuses of an institution of higher 

22 education would be at risk of cohort default rate 

23 sanctions under section 435 or student default risk 

24 sanctions under section 489A.’’; 

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1 (3) by inserting after paragraph (10), as redes2 ignated by paragraph (1), the following: 

3 ‘‘(11) FEDERAL EDUCATIONAL ASSISTANCE

4 FUNDS.—The term ‘Federal educational assistance 

5 funds’ means funds provided directly to an institu6 tion or to a student attending such institution under 

7 any of the following provisions of law: 

8 ‘‘(A) Title IV of the Higher Education Act 

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

10 ‘‘(B) Chapter 30, 31, 32, 33, 34, or 35 of 

11 title 38, United States Code. 

12 ‘‘(C) Chapter 101, 105, 106A, 1606, 1607, 

13 or 1608 of title 10, United States Code. 

14 ‘‘(D) Section 1784a, 2005, or 2007 of title 

15 10, United States Code. 

16 ‘‘(E) Title I of the Workforce Investment 

17 Act of 1998 (29 U.S.C. 2801 et seq.) or title 

18 I of the Workforce Innovation and Opportunity 

19 Act (Public Law 113–128). 

20 ‘‘(F) The Adult Education and Family Lit21 eracy Act (20 U.S.C. 9201 et seq.). 

22 ‘‘(12) FOSTER CARE CHILDREN AND YOUTH.— 

23 The term ‘foster care children and youth’— 

24 ‘‘(A) means children and youth whose care 

25 and placement is the responsibility of the State 

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1 or Tribal agency that administers a State plan 

2 under part B or E of title IV of the Social Se3 curity Act (42 U.S.C. 621 et seq. and 670 et 

4 seq.), without regard to whether foster care 

5 maintenance payments are made under section 

6 472 of such Act (42 U.S.C. 672) on behalf of 

7 the child or youth; and 

8 ‘‘(B) includes individuals whose care and 

9 placement was the responsibility of the State or 

10 Tribal agency that administers a State plan 

11 under part B or E of title IV of the Social Se12 curity Act (42 U.S.C. 621 et seq. and 670 et 

13 seq.) when they were age 13 or older but are 

14 no longer under the care and responsibility of 

15 the State or tribal agency.’’; 

16 (4) by inserting after paragraph (17), as redes17 ignated by paragraph (1), the following: 

18 ‘‘(18) RECRUITING AND MARKETING ACTIV19 ITY.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 subparagraph (B), the term ‘recruiting and 

22 marketing activity’ means an activity that con23 sists of the following: 

24 ‘‘(i) Any advertising or promotion ac25 tivity, including a paid announcement in 

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1 newspapers, magazines, radio, television, 

2 billboards, electronic media, naming rights, 

3 or any other public medium of communica4 tion, including paying for a display or pro5 motion at a job fair, military installation, 

6 or postsecondary education recruiting 

7 event. 

8 ‘‘(ii) Any effort to identify and attract 

9 prospective students, directly or through a 

10 contractor or other third party, which shall 

11 include any contact concerning a prospec12 tive student’s potential enrollment or appli13 cation for grant, loan, or work assistance 

14 under title IV or participation in 

15 preadmission or advising activities, includ16 ing— 

17 ‘‘(I) paying employees responsible 

18 for overseeing enrollment and for con19 tacting potential students in person, 

20 by phone, by email, by internet com21 munications, or by other means, re22 garding enrollment; 

23 ‘‘(II) compensating a person to 

24 provide to an institution of higher 

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1 ing prospective students, including in2 formation obtained through websites 

3 established for such purpose; and 

4 ‘‘(III) providing funds to a third 

5 party to create or maintain a website 

6 for the purpose of obtaining contact 

7 information regarding prospective stu8 dents. 

9 ‘‘(iii) Any other activity as the Sec10 retary may determine, including paying for 

11 promotion or sponsorship of education or 

12 military-related associations. 

13 ‘‘(B) EXCEPTION.—An activity that is re14 quired as a condition of receipt of funds by an 

15 institution under title IV, or under another ap16 plicable Federal law, shall not be considered to 

17 be a recruiting and marketing activity under 

18 subparagraph (A). 

19 ‘‘(19) PRIVATE EDUCATION LOAN.—The term 

20 ‘private education loan’ has the meaning given the 

21 term in section 140(a) of the Truth in Lending Act 

22 (15 U.S.C. 1650(a)).’’; and 

23 (5) in paragraph (28), as redesignated by para24 graph (1)— 

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1 (A) in the matter before subparagraph (A), 

2 by striking ‘‘scientifically valid’’ and inserting 

3 ‘‘research-based’’; and 

4 (B) in subparagraph (B), by striking ‘‘all 

5 students, including students with disabilities 

6 and students who are limited English pro7 ficient.’’ and inserting ‘‘all students.’’. 

8 SEC. 104. AUTHORIZATION OF APPROPRIATIONS FOR DRUG 

9 AND ALCOHOL ABUSE PREVENTION. 

10 Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amend11 ed by striking ‘‘2009’’ and inserting ‘‘2015’’. 

12 SEC. 105. MANDATORY FINANCIAL AID AWARD LETTER. 

13 Part B of title I (20 U.S.C. 1011 et seq.) is amended 

14 by adding at the end the following: 

15 ‘‘SEC. 124. USE OF MANDATORY FINANCIAL AID AWARD 

16 LETTER. 

17 ‘‘(a) IN GENERAL.—Notwithstanding any other pro18 vision of law, each institution of higher education that par19 ticipates in any program under title IV shall use the finan20 cial aid award letter developed under section 483B in pro21 viding written or electronic financial aid offers to students 

22 enrolled in, or accepted for enrollment in, the institution. 

23 ‘‘(b) EFFECTIVE DATE.—The requirement under 

24 subsection (a) shall take effect 12 months after the Secmstockstill on DSK4VPTVN1PROD with BILLS

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1 retary finalizes the financial aid award letter developed 

2 under section 483B.’’. 

3 SEC. 106. CODE OF CONDUCT IN AFFILIATED CONSUMER 

4 FINANCIAL PRODUCTS OR SERVICES. 

5 Part B of title I (20 U.S.C. 1011 et seq.), as amend6 ed by section 105, is further amended by adding at the 

7 end the following: 

8 ‘‘SEC. 125. CODE OF CONDUCT IN AFFILIATED CONSUMER 

9 FINANCIAL PRODUCTS OR SERVICES. 

10 ‘‘(a) DEFINITIONS.—In this section: 

11 ‘‘(1) AFFILIATED.— 

12 ‘‘(A) IN GENERAL.—The term ‘affiliated’, 

13 when used with respect to a consumer financial 

14 product or service and an institution of higher 

15 education, means an association between such 

16 institution and product or service resulting 

17 from— 

18 ‘‘(i) the name, emblem, mascot, or 

19 logo of the institution being used with re20 spect to such product or service; or 

21 ‘‘(ii) some other word, picture, or 

22 symbol readily identified with the institu23 tion in the marketing of the consumer fi24 nancial product or service in any way that 

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1 implies that the institution endorses the 

2 consumer financial product or service. 

3 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

4 in subparagraph (A) shall be construed to deem 

5 an association between an institution of higher 

6 education and a consumer financial product or 

7 service to be affiliated if such association is 

8 solely based on an advertisement by a financial 

9 institution that is delivered to a wide and gen10 eral audience consisting of more than enrolled 

11 students at the institution of higher education. 

12 ‘‘(2) ASSOCIATED INDIVIDUAL.—The term ‘as13 sociated individual’, when used with respect to an in14 stitution of higher education, means an individual 

15 who is— 

16 ‘‘(A) an officer of such institution of high17 er education; 

18 ‘‘(B) an employee or agent of the institu19 tion of higher education who is involved in the 

20 contracting, approval, analysis, or decision21 making process for an affiliated consumer fi22 nancial product or service; or 

23 ‘‘(C) an employee or agent of the institu24 tion of higher education involved in the marmstockstill on DSK4VPTVN1PROD with BILLS

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1 keting or solicitation process pertaining to an 

2 affiliated consumer financial product or service. 

3 ‘‘(3) CONSUMER FINANCIAL PRODUCT OR SERV4 ICE.—The term ‘consumer financial product or serv5 ice’ has the meaning given the term in section 1002 

6 of the Consumer Financial Protection Act of 2010 

7 (12 U.S.C. 5481). 

8 ‘‘(4) FINANCIAL INSTITUTION.—The term ‘fi9 nancial institution’ has the meaning given the term 

10 in section 140B of the Truth in Lending Act. 

11 ‘‘(5) INSTITUTION OF HIGHER EDUCATION.— 

12 The term ‘institution of higher education’ means an 

13 institution of higher education as defined in section 

14 102. 

15 ‘‘(b) CODE OF CONDUCT.—Notwithstanding any 

16 other provision of law, no institution of higher education 

17 that is affiliated with a consumer financial product or 

18 service shall be eligible to receive funds or any other form 

19 of financial assistance under this Act, unless the institu20 tion— 

21 ‘‘(1) develops a code of conduct with respect to 

22 affiliated consumer financial products or services 

23 with which associated individuals shall comply 

24 that— 

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1 ‘‘(A) prohibits a conflict of interest with 

2 the responsibility of an associated individual 

3 with respect to such affiliated consumer finan4 cial product or services; 

5 ‘‘(B) requires each associated individual to 

6 act in the best interest of the students enrolled 

7 at the institution of higher education in car8 rying out their duties; and 

9 ‘‘(C) at a minimum, is aligned with the re10 quirements and prohibitions described under 

11 subsections (c) through (g); 

12 ‘‘(2) publishes such code of conduct promi13 nently on the institution’s website; and 

14 ‘‘(3) administers and enforces such code by, at 

15 a minimum, requiring that all of the institution’s as16 sociated individuals be annually informed of the pro17 visions of the code of conduct. 

18 ‘‘(c) BAN ON REVENUE-SHARING ARRANGEMENTS.— 

19 ‘‘(1) PROHIBITION.—An institution of higher 

20 education that is affiliated with a consumer financial 

21 product or service shall not enter into any revenue22 sharing arrangement with the financial institution. 

23 ‘‘(2) DEFINITION.—In this subsection, the term 

24 ‘revenue-sharing arrangement’— 

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1 ‘‘(A) means an arrangement between an 

2 institution of higher education and a financial 

3 institution under which— 

4 ‘‘(i) the financial institution provides 

5 or issues a consumer financial product or 

6 service to students attending the institu7 tion of higher education; 

8 ‘‘(ii) the institution of higher edu9 cation recommends, promotes, sponsors, or 

10 otherwise endorses the financial institution, 

11 or the consumer financial products or serv12 ices offered by the financial institution; 

13 and 

14 ‘‘(iii) the financial institution pays a 

15 fee or provides other material benefits, in16 cluding revenue or profit sharing, to the 

17 institution of higher education in connec18 tion with the consumer financial products 

19 or services provided to students of the in20 stitution of higher education; and 

21 ‘‘(B) does not include an arrangement 

22 solely based on a financial institution paying a 

23 fair market price to an institution of higher 

24 education for the institution of higher education 

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1 to advertise or market the financial institution 

2 to the general public. 

3 ‘‘(d) GIFT BAN.— 

4 ‘‘(1) PROHIBITION.—No associated individual 

5 of an institution of higher education shall solicit or 

6 accept any gift from a financial institution that has 

7 a consumer financial product or service with which 

8 the institution is affiliated. 

9 ‘‘(2) DEFINITION OF GIFT.— 

10 ‘‘(A) IN GENERAL.—In this subsection, the 

11 term ‘gift’ means any gratuity, favor, discount, 

12 entertainment, hospitality, loan, or other item 

13 having a monetary value of more than a de 

14 minimis amount. The term includes a gift of 

15 services, transportation, lodging, or meals, 

16 whether provided in kind, by purchase of a tick17 et, payment in advance, or reimbursement after 

18 the expense has been incurred. 

19 ‘‘(B) EXCEPTIONS.—The term ‘gift’ shall 

20 not include any of the following: 

21 ‘‘(i) Standard material, activities, or 

22 programs on issues related to a consumer 

23 financial product or service or financial lit24 eracy, such as a brochure, a workshop, or 

25 training. Such material, training, or promstockstill on DSK4VPTVN1PROD with BILLS

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1 gram shall not promote a product or serv2 ice of any specific financial institution. 

3 ‘‘(ii) Food, refreshments, training, or 

4 informational material furnished to an as5 sociated individual as an integral part of a 

6 training session that is designed to im7 prove the service of a financial institution 

8 to the institution of higher education, if 

9 such training contributes to the profes10 sional development of the associated indi11 vidual. 

12 ‘‘(iii) Favorable terms, conditions, and 

13 borrower benefits on a consumer financial 

14 product or service provided to all employ15 ees of the institution of higher education if 

16 such terms, conditions, or benefits are 

17 comparable to those provided to all stu18 dents of the institution. 

19 ‘‘(iv) Philanthropic contributions to 

20 an institution of higher education from a 

21 financial institution that are unrelated to 

22 the affiliated consumer financial product or 

23 service or the financial institution in gen24 eral or any contribution from the financial 

25 institution that is not made in exchange 

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1 for any advantage related to the financial 

2 institution. 

3 ‘‘(C) RULE FOR GIFTS TO FAMILY MEM4 BERS.—For purposes of this subsection, a gift 

5 to a family member of an associated individual 

6 of an institution of higher education shall be 

7 considered a gift to the associated individual 

8 if— 

9 ‘‘(i) the gift is given with the knowl10 edge and acquiescence of the associated in11 dividual; and 

12 ‘‘(ii) the associated individual has rea13 son to believe the gift was given because of 

14 the official position of the associated indi15 vidual. 

16 ‘‘(e) CONTRACTING ARRANGEMENTS PROHIBITED.— 

17 ‘‘(1) PROHIBITION.—No associated individual 

18 of an institution of higher education shall accept 

19 from a financial institution that has a consumer fi20 nancial product or service with which the institution 

21 is affiliated a fee, payment, or other financial benefit 

22 (including the opportunity to purchase stock) as 

23 compensation for any type of consulting arrange24 ment or other contract to provide services to the fimstockstill on DSK4VPTVN1PROD with BILLS

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1 nancial institution or on behalf of the financial insti2 tution. 

3 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

4 this subsection shall be construed as prohibiting the 

5 conduct of an individual who is not an associated in6 dividual. 

7 ‘‘(f) BAN ON STAFFING ASSISTANCE.—An institution 

8 of higher education shall not request or accept from a fi9 nancial institution with which the institution has an affili10 ated consumer financial product or service any assistance 

11 with call center staffing, financial aid office staffing, or 

12 any other office or department of the institution of higher 

13 education. 

14 ‘‘(g) ADVISORY BOARD COMPENSATION.—Any asso15 ciated individual of an institution of higher education who 

16 serves on an advisory board, commission, or group estab17 lished by a financial institution that has a consumer finan18 cial product or service with which the institution is affili19 ated shall be prohibited from receiving anything of value 

20 from the financial institution, except that the individual 

21 may be reimbursed for reasonable expenses incurred in 

22 serving on such advisory board, commission, or group.’’. 

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1 SEC. 107. RESTRICTION ON MARKETING WITH FEDERAL 

2 EDUCATIONAL ASSISTANCE FUNDS. 

3 (a) TRANSFER.—Section 119 of the Higher Edu4 cation Opportunity Act (20 U.S.C. 1011m) is amended— 

5 (1) by transferring such section so as to follow 

6 section 125 of the Higher Education Act of 1965, as 

7 added by section 106; and 

8 (2) by redesignating such section as section 126 

9 of the Higher Education Act of 1965. 

10 (b) AMENDMENTS.—Section 126, as transferred and 

11 redesignated by subsection (a), is further amended— 

12 (1) in the section heading, by inserting ‘‘AND

13 RESTRICTIONS ON SOURCES OF FUNDS FOR

14 RECRUITING AND MARKETING ACTIVITIES’’ 

15 after ‘‘FUNDS’’; 

16 (2) in subsection (d), by striking ‘‘subsections 

17 (a) through (c)’’ and inserting ‘‘subsections (a), (b), 

18 (c), and (e)’’; 

19 (3) by redesignating subsection (e) as sub20 section (f); 

21 (4) by inserting after subsection (d) the fol22 lowing: 

23 ‘‘(e) RESTRICTIONS ON SOURCES OF FUNDS FOR RE24 CRUITING AND MARKETING ACTIVITIES.— 

25 ‘‘(1) IN GENERAL.—An institution of higher 

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1 tution, may not use revenues derived from Federal 

2 educational assistance funds for recruiting or mar3 keting activities. 

4 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

5 this section shall be construed as a limitation on the 

6 use by an institution of revenues derived from 

7 sources other than Federal educational assistance 

8 funds. 

9 ‘‘(3) REPORTING.—Each institution of higher 

10 education, or other postsecondary educational insti11 tution, that receives revenues derived from Federal 

12 educational assistance funds shall report annually to 

13 the Secretary and to Congress the institution’s ex14 penditures on advertising, marketing, and recruiting, 

15 and shall include in such report a verification from 

16 an independent auditor that the institution of higher 

17 education is in compliance with the requirement 

18 under paragraph (1).’’; 

19 (5) by striking ‘‘the Higher Education Act of 

20 1965 (20 U.S.C. 1001 et seq.)’’ each place the term 

21 appears and inserting ‘‘this Act’’; and 

22 (6) by striking ‘‘Secretary of Education’’ each 

23 place the term appears and inserting ‘‘Secretary’’. 

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1 SEC. 108. MINIMUM STANDARDS FOR NET PRICE CALCULA2 TORS. 

3 Section 132(h) (20 U.S.C. 1015a(h)) is amended— 

4 (1) by redesignating paragraph (4) as para5 graph (6); 

6 (2) in paragraph (2), by inserting before the pe7 riod ‘‘, and, not later than 1 year after the date of 

8 enactment of the Higher Education Affordability 

9 Act, shall meet the requirements of paragraph 

10 (4)(B)’’; 

11 (3) in paragraph (3), by inserting after the first 

12 sentence the following: ‘‘Not later than 1 year after 

13 the date of enactment of the Higher Education Af14 fordability Act, such calculator shall meet the re15 quirements of paragraph (4).’’; 

16 (4) by inserting after paragraph (3) the fol17 lowing: 

18 ‘‘(4) MINIMUM REQUIREMENTS FOR NET PRICE

19 CALCULATORS.—Not later than 1 year after the date 

20 of enactment of the Higher Education Affordability 

21 Act, a net price calculator for an institution of high22 er education shall, at a minimum, meet the following 

23 requirements: 

24 ‘‘(A) The link for the calculator— 

25 ‘‘(i) is clearly labeled as a ‘net price 

26 calculator’ and is prominently and clearly 

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1 posted in locations on the institution’s 

2 website where information on costs and aid 

3 is provided; and 

4 ‘‘(ii) may also be included on the in5 stitution’s compliance webpage, which con6 tains information relating to compliance 

7 with Federal, State, and local laws. 

8 ‘‘(B) The results screen for the calculator 

9 specifies the following information: 

10 ‘‘(i) The net price (as calculated 

11 under subsection (h)(2)) for the individual 

12 student, which is the most visually promi13 nent figure on the results screen. 

14 ‘‘(ii) Cost of attendance for the insti15 tution, including— 

16 ‘‘(I) tuition and fees; 

17 ‘‘(II) the average annual cost of 

18 room and board for the institution for 

19 a first-time, full-time undergraduate 

20 student enrolled in the institution; 

21 ‘‘(III) the average annual cost of 

22 books and supplies for a first-time, 

23 full-time undergraduate student en24 rolled in the institution; and 

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1 ‘‘(IV) the estimated cost of other 

2 expenses (including personal expenses 

3 and transportation) for a first-time, 

4 full-time undergraduate student en5 rolled in the institution. 

6 ‘‘(iii) Estimated amount of need-based 

7 grant aid and merit-based grant aid, from 

8 Federal, State, and institutional sources, 

9 that students receive at the institution, 

10 showing the subtotal for each category and 

11 the total for all sources of grant aid. 

12 ‘‘(iv) Percentage of the first-time, full13 time undergraduate students enrolled in 

14 the institution that received any type of 

15 grant aid described in clause (iii). 

16 ‘‘(v) The disclaimer described in para17 graph (6). 

18 ‘‘(vi) In the case of a calculator 

19 that— 

20 ‘‘(I) includes questions to esti21 mate a student’s (or prospective stu22 dent’s) eligibility for veterans’ edu23 cation benefits (as defined in section 

24 480) or educational benefits for active 

25 duty service members, such benefits 

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1 are displayed on the results screen in 

2 a manner that clearly distinguishes 

3 them from the grant aid described in 

4 clause (iii); or 

5 ‘‘(II) does not include questions 

6 to estimate eligibility for the benefits 

7 described in subclause (I), the results 

8 screen indicates that certain students 

9 (or prospective students) may qualify 

10 for such benefits and includes a link 

11 to official Federal information about 

12 such benefits. 

13 ‘‘(C) The institution populates the calcu14 lator with data from no earlier than 2 academic 

15 years prior to the most recent academic year. 

16 ‘‘(5) PRIVACY REQUIREMENTS AND DISCLO17 SURES.— 

18 ‘‘(A) PRIVACY REQUIREMENTS.—An insti19 tution of higher education— 

20 ‘‘(i) shall carry out this subsection in 

21 a manner that complies with the require22 ments of section 444 of the General Edu23 cation Provisions Act (commonly known as 

24 the ‘Family Educational Rights and Pri25 vacy Act of 1974’) (20 U.S.C. 1232g); and 

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1 ‘‘(ii) shall not— 

2 ‘‘(I) allow any personal informa3 tion, voluntarily provided by users for 

4 the net price calculator for the institu5 tion to be sold or made available to 

6 third parties; 

7 ‘‘(II) store any responses made 

8 by users through the net price calcu9 lator; 

10 ‘‘(III) require that a user provide 

11 any personally identifiable information 

12 in order to use the net price calcu13 lator. 

14 ‘‘(B) PRIVACY DISCLOSURES.—A net price 

15 calculator shall— 

16 ‘‘(i) clearly indicate which questions 

17 are required to be completed for an esti18 mate of the net price from the calculator; 

19 ‘‘(ii) in the case of a calculator that 

20 requests contact information from users, 

21 clearly mark such requests as ‘optional’; 

22 ‘‘(iii) clearly state ‘Any information 

23 that you provide on this site is confiden24 tial. The Net Price Calculator does not re25 quire personally identifiable information of 

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1 any kind and does not store your re2 sponses.’; and 

3 ‘‘(iv) be established, maintained, and 

4 operated in a manner that is in compliance 

5 with the requirements of section 444 of the 

6 General Education Provisions Act (com7 monly known as the ‘Family Educational 

8 Rights and Privacy Act of 1974’) (20 

9 U.S.C. 1232g)’’; and 

10 (5) by adding at the end the following: 

11 ‘‘(7) UNIVERSAL NET PRICE CALCULATOR.— 

12 Not later than 2 years after the date of enactment 

13 of the Higher Education Affordability Act, the Sec14 retary shall develop a universal net price calculator 

15 that— 

16 ‘‘(A) enables users to answer one set of 

17 questions and receive net prices for any institu18 tion that is required to have a net price calcu19 lator under this subsection; 

20 ‘‘(B) provides the information required 

21 under subparagraphs (B) and (C) of paragraph 

22 (4) for each institution for which a net price is 

23 being sought; 

24 ‘‘(C) is developed in consultation with— 

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1 ‘‘(i) the heads of relevant Federal 

2 agencies; 

3 ‘‘(ii) representatives of institutions of 

4 higher education, nonprofit consumer 

5 groups, and secondary and postsecondary 

6 students; and 

7 ‘‘(iii) secondary school and postsec8 ondary guidance counselors; 

9 ‘‘(D) before being finalized and publicly re10 leased, is tested in accordance with the con11 sumer testing process described in section 

12 483C; and 

13 ‘‘(E) complies with the privacy require14 ments described in paragraph (5). 

15 ‘‘(8) REPORT FROM SECRETARY.—Not later 

16 than 2 years after the date of enactment of the 

17 Higher Education Affordability Act, the Secretary 

18 shall submit a report to Congress on— 

19 ‘‘(A) steps taken to raise awareness of net 

20 price calculators among prospective students 

21 and families, particularly among students in 

22 middle school and high school and students 

23 from low-income families; 

24 ‘‘(B) how institutions are complying with 

25 the requirements of this subsection, including 

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1 an analysis of where institutions are placing the 

2 net price calculators on their websites and the 

3 design of the net price calculators by institu4 tions; and 

5 ‘‘(C) an analysis of how students are bene6 fitting from the use of net price calculators. 

7 ‘‘(9) WEBSITE LINK.—The Secretary shall en8 sure that a link to the website containing the net 

9 price calculator and the universal net price calcu10 lator (once the universal net price calculator has 

11 been developed) is available on each of the following 

12 websites: 

13 ‘‘(A) The College Navigator website de14 scribed under subsection (i). 

15 ‘‘(B) The College Scorecard website de16 scribed under section 133. 

17 ‘‘(C) The website of the College Afford18 ability and Transparency Center. 

19 ‘‘(D) The website of the Office of Federal 

20 Student Aid.’’. 

21 SEC. 109. BENEFITS FOR BORROWERS WHO ARE MEMBERS 

22 OF THE ARMED FORCES. 

23 Section 131(f) (20 U.S.C. 1015(f)) is amended to 

24 read as follows: 

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1 ‘‘(f) BENEFITS FOR MEMBERS OF THE ARMED

2 FORCES.— 

3 ‘‘(1) WEBSITE.— 

4 ‘‘(A) IN GENERAL.—The Secretary, in co5 ordination with the Secretary of Defense, the 

6 Secretary of Veterans Affairs, and the Sec7 retary of Homeland Security, shall create a re8 vised and updated searchable Internet website 

9 that— 

10 ‘‘(i) contains information, in simple 

11 and understandable terms, about all Fed12 eral and State student financial assistance, 

13 readmission requirements under section 

14 484C, and other student services, for 

15 which members of the Armed Forces (in16 cluding members of the National Guard 

17 and Reserves), veterans, and the depend18 ents of such members or veterans may be 

19 eligible; and 

20 ‘‘(ii) is easily accessible through the 

21 Internet website described in subsection 

22 (e)(3). 

23 ‘‘(B) IMPLEMENTATION.—Not later than 1 

24 year after the date of enactment of the Higher 

25 Education Affordability Act, the Secretary shall 

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1 make publicly available the revised and updated 

2 Internet website described in subparagraph (A). 

3 ‘‘(C) DISSEMINATION.—The Secretary, in 

4 coordination with the Secretary of Defense and 

5 the Secretary of Veterans Affairs, shall make 

6 the availability of the Internet website described 

7 in subparagraph (A) widely known to members 

8 of the Armed Forces (including members of the 

9 National Guard and Reserves), veterans, the 

10 dependents of such members or veterans, 

11 States, institutions of higher education, and the 

12 general public. 

13 ‘‘(D) DEFINITION.—In this paragraph, the 

14 term ‘Federal and State student financial as15 sistance’ means any grant, loan, work assist16 ance, tuition assistance, scholarship, fellowship, 

17 or other form of financial aid for pursuing a 

18 postsecondary education that is— 

19 ‘‘(i) administered, sponsored, or sup20 ported by the Department of Education, 

21 the Department of Defense, the Depart22 ment of Veterans Affairs, or a State; and 

23 ‘‘(ii) available to members of the 

24 Armed Forces (including members of the 

25 National Guard and Reserves), veterans, 

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1 or the dependents of such members or vet2 erans. 

3 ‘‘(2) ENROLLMENT FORM.— 

4 ‘‘(A) IN GENERAL.—The Secretary, in con5 sultation with the Director of the Bureau of 

6 Consumer Financial Protection, the Secretary 

7 of Defense, and the heads of any other relevant 

8 Federal agencies, shall create a simplified dis9 closure and enrollment form for borrowers who 

10 are performing eligible military service (as de11 fined in section 481(d)). 

12 ‘‘(B) CONTENTS.—The disclosure and en13 rollment form described in subparagraph (A) 

14 shall include— 

15 ‘‘(i) information about the benefits 

16 and protections under title IV and under 

17 the Servicemembers Civil Relief Act (50 

18 U.S.C. App. 501 et seq.) that are available 

19 to such borrower because the borrower is 

20 performing eligible military service; and 

21 ‘‘(ii) an opportunity for the borrower, 

22 by completing the enrollment form, to in23 voke certain protections, activate certain 

24 benefits, and enroll in certain programs 

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1 that may be available to that borrower, 

2 which shall include the opportunity— 

3 ‘‘(I) to invoke applicable protec4 tions that are available under the 

5 Servicemembers Civil Relief Act (50 

6 U.S.C. App. 501 et seq.), as such pro7 tections relate to Federal student 

8 loans under title IV; and 

9 ‘‘(II) to activate or enroll in any 

10 other applicable benefits that are 

11 available to such borrower under this 

12 Act because the borrower is per13 forming eligible military service, such 

14 as eligibility for a deferment or eligi15 bility for a period during which inter16 est shall not accrue. 

17 ‘‘(C) IMPLEMENTATION.—Not later than 

18 365 days after the date of the enactment of the 

19 Higher Education Affordability Act, the Sec20 retary shall make available to eligible institu21 tions, eligible lenders, and personnel at the De22 partment of Defense and other Federal agencies 

23 that provide services to borrowers who are 

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1 ents of such members, the disclosure and enroll2 ment form described in subparagraph (A). 

3 ‘‘(D) NOTICE REQUIREMENTS.— 

4 ‘‘(i) SCRA INTEREST RATE LIMITA5 TION.—The completion of the disclosure 

6 and enrollment form created pursuant to 

7 subparagraph (A) by the borrower of a 

8 loan made, insured, or guaranteed under 

9 part B or part D of title IV who is other10 wise subject to the interest rate limitation 

11 in subsection (a) of section 207 of the 

12 Servicemembers Civil Relief Act (50 U.S.C. 

13 App. 527(a)) and submittal of such form 

14 to the Secretary shall be considered, for 

15 purposes of such section, provision to the 

16 creditor of written notice as described in 

17 subsection (b)(1) of such section. 

18 ‘‘(ii) FFEL LENDERS.—The Sec19 retary shall provide each such disclosure 

20 and enrollment form completed and sub21 mitted by a borrower of a loan made, in22 sured, or guaranteed under part B of title 

23 IV who is otherwise subject to the interest 

24 rate limitation in subsection (a) of section 

25 207 of the Servicemembers Civil Relief Act 

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1 (50 U.S.C. App. 527(a)) to any applicable 

2 eligible lender under part B of title IV so 

3 as to satisfy the provision to the lender of 

4 written notice as described in subsection 

5 (b)(1) of such section.’’. 

6 SEC. 110. DATA IMPROVEMENTS FOR COLLEGE NAVI7 GATOR. 

8 Section 132(i)(1) (20 U.S.C. 1015(i)(1)) is amended 

9 by striking subparagraph (M) and inserting the following: 

10 ‘‘(M) The student faculty ratio, the num11 ber of full-time faculty, the ratio of the number 

12 of course sections taught by part-time instruc13 tors to the number of course sections taught by 

14 full-time faculty, the mean and median years of 

15 employment for part-time instructors, and the 

16 number of graduate assistants with primarily 

17 instructional responsibilities, at the institu18 tion.’’. 

19 SEC. 111. COLLEGE SCORECARD. 

20 Part C of title I (20 U.S.C. 1015 et seq.) is amend21 ed— 

22 (1) by redesignating sections 133 through 137 

23 as sections 134 through 138, respectively; and 

24 (2) by inserting after section 132 the following: 

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1 ‘‘SEC. 133. COLLEGE SCORECARD. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) COLLEGE SCORECARD.—The term ‘College 

4 Scorecard’ refers to the College Scorecard website 

5 developed and operated by the Department under 

6 subsection (b) and any successor website. 

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

8 The term ‘institution of higher education’ means an 

9 institution of higher education, as defined in section 

10 102, that awards a degree or certificate. 

11 ‘‘(3) RECENT GRADUATE.—The term ‘recent 

12 graduate’, when used in reference to a graduate of 

13 an institution of higher education, shall mean a stu14 dent who completed a course of study and earned a 

15 certificate or degree at the institution in any of the 

16 6 most recent preceding years for which data are 

17 available. 

18 ‘‘(b) IN GENERAL.—The Secretary shall develop and 

19 make publicly available a College Scorecard website to pro20 vide students and families with information regarding 

21 higher education affordability and value for each institu22 tion of higher education that receives funds under title IV. 

23 ‘‘(c) STANDARD FORMAT.— 

24 ‘‘(1) IN GENERAL.—The Secretary, in consulta25 tion with the heads of relevant Federal agencies, 

26 shall develop a standard format to be used by the 

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1 Secretary for public disclosure of information related 

2 to higher education affordability and value, including 

3 the information described in subsections (d) and (e). 

4 ‘‘(2) RECOMMENDATIONS FROM OTHER

5 GROUPS.—The standard format developed under 

6 paragraph (1) shall be based on recommendations 

7 from representatives of secondary school students 

8 and postsecondary students, the families of sec9 ondary school and postsecondary students, institu10 tions of higher education, secondary school and post11 secondary education counselors, and nonprofit con12 sumer groups. 

13 ‘‘(3) SOURCES OF DATA.—The data used in the 

14 standard format shall be data that are available to 

15 the Secretary through other sources and reports. 

16 ‘‘(d) KEY REQUIRED CONTENTS.—The standard for17 mat developed under subsection (c) shall include, in a con18 sumer-friendly manner that is simple and understandable, 

19 the following information for each degree- and certificate20 granting institution of higher education that receives 

21 funds under title IV for the most recent year for which 

22 data are available: 

23 ‘‘(1) NET PRICE INFORMATION.— 

24 ‘‘(A) The average net price paid by en25 rolled students to attend the institution, calmstockstill on DSK4VPTVN1PROD with BILLS

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1 culated in a manner consistent with section 

2 132(a)(3), for the subgroups of students at the 

3 institution in each of the following annual fam4 ily income categories, and the percentage of 

5 students in each category: 

6 ‘‘(i) $0 to $30,000. 

7 ‘‘(ii) $30,001 to $48,000. 

8 ‘‘(iii) $48,001 to $75,000. 

9 ‘‘(iv) $75,001 to $110,000. 

10 ‘‘(v) $110,001 and more. 

11 ‘‘(B) A visual representation that provides 

12 context for the information conveyed under sub13 paragraph (A), including how the net price in14 formation compares to other institutions. 

15 ‘‘(C) The Commissioner of the National 

16 Center for Education Statistics may periodically 

17 adjust the annual family income categories de18 scribed under subparagraph (A). 

19 ‘‘(2) COMPLETION AND TRANSFER DATA.— 

20 ‘‘(A) For each institution, the percentages 

21 of certificate- or degree-seeking undergraduate 

22 students enrolled at the institution who obtain 

23 a certificate or degree within— 

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1 ‘‘(i) 100 percent of the normal time 

2 for completion of, or graduation from, the 

3 student’s educational program; and 

4 ‘‘(ii) 150 percent of the normal time 

5 for completion of, or graduation from, the 

6 student’s educational program. 

7 ‘‘(B) For each institution, the percentages 

8 of certificate- or degree-seeking undergraduate 

9 students enrolled at the institution— 

10 ‘‘(i) who persist and remain enrolled 

11 in the institution from academic term to 

12 academic term; and 

13 ‘‘(ii) who persist and remain enrolled 

14 in the institution from year to year. 

15 ‘‘(C) For each institution, the percentages 

16 of certificate- or degree-seeking undergraduate 

17 students who have transferred to a 4-year insti18 tution of higher education within— 

19 ‘‘(i) 100 percent of the normal time 

20 for completion of, or graduation from, the 

21 student’s initial educational program; and 

22 ‘‘(ii) 150 percent of the normal time 

23 for completion of, or graduation from, the 

24 student’s initial educational program. 

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1 ‘‘(D) For each institution, a visual rep2 resentation that provides context for the infor3 mation conveyed under subparagraphs (A) and 

4 (B) and, as applicable, subparagraph (C), in5 cluding how the completion, transfer, and per6 sistence rates compare to other institutions. 

7 ‘‘(3) LOAN INFORMATION.— 

8 ‘‘(A) The percentage of students at the in9 stitution who have completed their certificate or 

10 degree program and who borrowed 1 or more 

11 loans under part B, D, or E of title IV, or pri12 vate education loans, while attending the insti13 tution. 

14 ‘‘(B) The institution’s speed-based loan re15 payment rate, as calculated under section 

16 483D(c) and the comparison information de17 scribed in section 483D(c)(4). 

18 ‘‘(C) A visual representation that provides 

19 context for the information conveyed under this 

20 paragraph, including how the information de21 scribed in subparagraphs (A) and (B) compares 

22 to other institutions. 

23 ‘‘(4) DEBT INFORMATION.— 

24 ‘‘(A) The mean and median student loan 

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1 curred by students who have earned a certifi2 cate or degree from the institution and who 

3 borrowed student loans in the course of obtain4 ing such certificate or degree in the most recent 

5 year for which data are available. 

6 ‘‘(B) The percentage of students at the in7 stitution who have borrowed money to attend 

8 the institution. 

9 ‘‘(C) A visual representation that provides 

10 context for the information conveyed under sub11 paragraphs (A) and (B), including how the debt 

12 information compares to other institutions. 

13 ‘‘(5) REPAYMENT INFORMATION.— 

14 ‘‘(A) The expected monthly repayment 

15 amounts for the mean and median student loan 

16 debt described in paragraph (4), under a stand17 ard repayment plan described in section 

18 455(d)(1)(A) based on a 10-year period. 

19 ‘‘(B) A visual representation that provides 

20 context for the information conveyed under sub21 paragraph (A), including how the repayment in22 formation compares to other similar institu23 tions. 

24 ‘‘(6) TYPE OF INSTITUTION.—A specification as 

25 to— 

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1 ‘‘(A) whether the institution of higher edu2 cation is a public, private nonprofit, or private 

3 for-profit institution; and 

4 ‘‘(B) whether the institution is a 4-year, 2- 

5 year, or less than 2-year institution and which 

6 degree type the institution primarily awards. 

7 ‘‘(7) ADDITIONAL INFORMATION.—Any other 

8 information the Secretary, in consultation with the 

9 heads of relevant Federal agencies, representatives 

10 of institutions of higher education, nonprofit con11 sumer groups, and secondary and postsecondary stu12 dents, and secondary school and postsecondary guid13 ance counselors, determines necessary so that stu14 dents and parents can make informed decisions re15 garding postsecondary education. 

16 ‘‘(e) COLLEGE TUITION TRANSPARENCY INFORMA17 TION.—The standard format developed for institutions of 

18 higher education under subsection (c) shall— 

19 ‘‘(1) prominently and clearly identify if the in20 stitution has been identified under section 132(c)(1), 

21 and the reasons for each institution’s identification; 

22 and 

23 ‘‘(2) provide a link to the webpage of the net 

24 price calculator of the institution, as required under 

25 section 132(h)(3). 

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1 ‘‘(f) ADDITIONAL REQUIREMENTS.—The standard 

2 format developed by the Secretary under subsection (c) 

3 shall— 

4 ‘‘(1) use, for the terms described in subsection 

5 (d), standard definitions and names that are devel6 oped by the Secretary in consultation with the heads 

7 of relevant Federal agencies, representatives of insti8 tutions of higher education, nonprofit consumer 

9 groups, secondary and postsecondary students, and 

10 secondary school and higher education guidance 

11 counselors; and 

12 ‘‘(2) use standard formatting and design that 

13 the Secretary, in consultation with the heads of rel14 evant Federal agencies, representatives of institu15 tions of higher education, nonprofit consumer 

16 groups, secondary school students, postsecondary 

17 students, and secondary school and higher education 

18 guidance counselors determine are clear, understand19 able, and suitable for secondary school students. 

20 ‘‘(g) CONSUMER TESTING.—The Secretary shall 

21 carry out consumer testing for the College Scorecard in 

22 accordance with section 483C. 

23 ‘‘(h) FINAL STANDARD FORMAT AND AVAILABILITY

24 OF COLLEGE SCORECARD.—Not later than 60 days after 

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1 the conclusion of the consumer testing required under sub2 section (h), the Secretary shall— 

3 ‘‘(1) submit to the authorizing committees the 

4 final standard format for the College Scorecard and 

5 a report describing the results of consumer testing, 

6 including whether the Secretary added any addi7 tional items pursuant to subsection (d)(8); and 

8 ‘‘(2) make the final College Scorecard, includ9 ing all information required for the standard format 

10 under subsections (d) and (e) for all institutions of 

11 higher education that receive funds until title IV, 

12 publicly available through a College Scorecard 

13 website and through a link on the following other 

14 websites: 

15 ‘‘(A) The College Navigator website de16 scribed under section 132(i). 

17 ‘‘(B) The website of the College Afford18 ability and Transparency Center. 

19 ‘‘(C) The website of the Office of Federal 

20 Student Aid. 

21 ‘‘(i) DISTRIBUTION OF COLLEGE SCORECARD.—Each 

22 institution of higher education receiving funds under title 

23 IV shall— 

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1 ‘‘(1) make the most recent College Scorecard 

2 for the institution publicly available on the website 

3 of the institution; 

4 ‘‘(2) distribute the most recent College Score5 card for the institution to prospective students and 

6 accepted students of the institution— 

7 ‘‘(A) in the same format in which the insti8 tution communicates with prospective and ac9 cepted students about applying to and enrolling 

10 in the institution; and 

11 ‘‘(B) in a manner that allows for the stu12 dent or the family of the student to take such 

13 information into account before applying or en14 rolling, without regard to whether the informa15 tion was requested; and 

16 ‘‘(3) in the case of an institution with high stu17 dent default risk that is required under section 

18 487(a)(32) to provide a student accepted for enroll19 ment with a waiting period of not less than 2 weeks 

20 to consider postsecondary options, disclose to the 

21 student the College Scorecard of the institution at or 

22 before the start of such waiting period. 

23 ‘‘(j) PUBLIC AWARENESS CAMPAIGN.— 

24 ‘‘(1) IN GENERAL.—Not later than 180 days 

25 after the date of enactment of the Higher Education 

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1 Affordability Act, the Secretary shall coordinate, 

2 with entities such as States, institutions of higher 

3 education, State educational agencies, local edu4 cational agencies, secondary schools, and other agen5 cies, and organizations involved in access to higher 

6 education and student financial aid, and implement 

7 a public awareness campaign in order to increase 

8 national awareness of the College Scorecard. 

9 ‘‘(2) CONTENT AND IMPLEMENTATION OF CAM10 PAIGN.—The public awareness campaign carried out 

11 under this subsection shall disseminate information 

12 regarding the functions and methods of accessing 

13 the College Scorecard, and shall be implemented, to 

14 the extent practicable, using a variety of media, in15 cluding print, television, radio, and the Internet. 

16 ‘‘(3) USE OF RESEARCH-BASED STRATEGIES.— 

17 The Secretary shall design and implement the public 

18 awareness campaign carried out under this sub19 section based on relevant independent research and 

20 information on dissemination strategies found suit21 able for students in secondary school and postsec22 ondary education.’’. 

23 SEC. 112. REPORTING REQUIREMENTS. 

24 Section 135(b), as redesignated by section 111, is 

25 amended— 

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1 (1) in paragraph (1), by striking ‘‘and’’ after 

2 the semicolon; 

3 (2) in paragraph (2), by striking the period and 

4 inserting ‘‘; and’’; and 

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

6 ‘‘(3) is developed pursuant to the institutional 

7 reporting requirements under section 493G.’’. 

8 SEC. 113. IN-STATE TUITION RATES FOR CERTAIN INDIVID9 UALS. 

10 Section 136, as redesignated by section 111, is 

11 amended to read as follows: 

12 ‘‘SEC. 136. IN-STATE TUITION RATES FOR CERTAIN INDIVID13 UALS. 

14 ‘‘(a) MEMBERS OF THE ARMED FORCES ON ACTIVE

15 DUTY.— 

16 ‘‘(1) REQUIREMENT.—In the case of a member 

17 of the Armed Forces who is on active duty for a pe18 riod of more than 30 days and whose domicile or 

19 permanent duty station is in a State that receives 

20 assistance under this Act, such State shall not 

21 charge such member (or the spouse or dependent 

22 child of such member) tuition for attendance at a 

23 public institution of higher education in the State at 

24 a rate that is greater than the rate charged for resi25 dents of the State. 

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1 ‘‘(2) CONTINUATION.—If a member of the 

2 Armed Forces (or the spouse or dependent child of 

3 a member) pays tuition at a public institution of 

4 higher education in a State at a rate determined by 

5 paragraph (1), the provisions of paragraph (1) shall 

6 continue to apply to such member, spouse, or de7 pendent while continuously enrolled at that institu8 tion, notwithstanding a subsequent change in the 

9 permanent duty station of the member to a location 

10 outside the State. 

11 ‘‘(b) HOMELESS CHILDREN OR YOUTHS AND FOSTER

12 CARE CHILDREN OR YOUTHS.—A State shall not charge 

13 a homeless child or youth or a foster care child or youth 

14 tuition for attendance at a public institution of higher edu15 cation in the State at a rate that is greater than the rate 

16 charged for residents of the State, if the homeless child 

17 or youth or foster care child or youth— 

18 ‘‘(1) graduated from secondary school or ob19 tained the recognized equivalent of a secondary 

20 school diploma in such State; 

21 ‘‘(2) resided in such State as a homeless child 

22 or youth or a foster care child or youth while attend23 ing secondary school in an adjacent State, as 

24 verified by— 

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1 ‘‘(A) a local educational agency homeless 

2 liaison, designated pursuant to section 

3 722(g)(1)(J)(ii) of the McKinney-Vento Home4 less Assistance Act (42 U.S.C. 

5 11432(g)(1)(J)(ii)); 

6 ‘‘(B) the director (or a designee of the di7 rector) of an emergency or transitional shelter, 

8 street outreach program, homeless youth drop9 in center, or other program serving homeless 

10 youth or families; 

11 ‘‘(C) the director (or a designee of the di12 rector) of a program funded under chapter 1 or 

13 2 of subpart 2 of part A of title IV; or 

14 ‘‘(D) the State or tribal organization that 

15 administers a State plan under part B or E of 

16 title IV of the Social Security Act (42 U.S.C. 

17 621 et seq. and 670 et seq.). 

18 ‘‘(c) EFFECTIVE DATES.— 

19 ‘‘(1) ARMED FORCES.—With respect to an indi20 vidual described in subsection (a)(1), this section 

21 shall take effect at each public institution of higher 

22 education in a State that receives assistance under 

23 this Act for the first period of enrollment at such in24 stitution that begins after July 1, 2009. 

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1 ‘‘(2) HOMELESS CHILDREN OR YOUTHS AND

2 FOSTER CARE CHILDREN OR YOUTHS.—With respect 

3 to an individual described in subsection (b), this sec4 tion shall take effect at each public institution of 

5 higher education in a State that receives assistance 

6 under this Act for the first period of enrollment at 

7 such institution that begins after July 1, 2015. 

8 ‘‘(d) DEFINITIONS.— 

9 ‘‘(1) ‘ARMED FORCES’ AND ‘ACTIVE DUTY FOR

10 A PERIOD OF MORE THAN 30 DAYS’.—In this section, 

11 the terms ‘Armed Forces’ and ‘active duty for a pe12 riod of more than 30 days’ have the meanings given 

13 those terms in section 101 of title 10, United States 

14 Code. 

15 ‘‘(2) HOMELESS CHILDREN AND YOUTHS.—The 

16 term ‘homeless children and youths’ has the mean17 ing given the term in section 725 of the McKinney18 Vento Homeless Assistance Act (42 U.S.C. 

19 11434a).’’. 

20 SEC. 114. STATE HIGHER EDUCATION INFORMATION SYS21 TEM PILOT PROGRAM. 

22 Section 137(g), as redesignated by section 111, is 

23 amended by striking ‘‘2009’’ and inserting ‘‘2015’’. 

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1 SEC. 115. RESPONSIBILITIES OF FSA OMBUDSMAN; ADDI2 TION OF POINT OF CONTACT FOR MILITARY 

3 FAMILIES AND HOMELESS CHILDREN. 

4 Section 141(f) (20 U.S.C. 1018(f)) is amended— 

5 (1) in paragraph (3)— 

6 (A) in subparagraph (A), by striking 

7 ‘‘and’’ after the semicolon; 

8 (B) in subparagraph (B), by striking the 

9 period at the end and inserting ‘‘; and’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(C) receive, review, and resolve expedi12 tiously complaints regarding a student’s inde13 pendence under subparagraph (B) or (H) of 

14 section 480(d)(1), in consultation with knowl15 edgeable parties, including child welfare agen16 cies, local educational agency liaisons for home17 less children and youths designated under sub18 title B of title VII of the McKinney-Vento 

19 Homeless Assistance Act (42 U.S.C. 11431 et 

20 seq.) or State Coordinators for Education of 

21 Homeless Children and Youths established 

22 under such subtitle.’’; 

23 (2) by redesignating paragraph (4) as para24 graph (5); and 

25 (3) by inserting after paragraph (3) the fol26 lowing: 

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1 ‘‘(4) MILITARY AND VETERAN POINT OF CON2 TACT.— 

3 ‘‘(A) IN GENERAL.—The Chief Operating 

4 Officer, in consultation with the Secretary, shall 

5 designate 1 or more employees to act as the 

6 military and veteran point of contact within the 

7 office of the Student Loan Ombudsman. 

8 ‘‘(B) FUNCTIONS.—The designated mili9 tary and veteran point of contact described in 

10 subparagraph (A) shall— 

11 ‘‘(i) monitor the complaints received 

12 from the Ombudsman under paragraph 

13 (3)(A) from, and provide timely assistance 

14 to, members of the Armed Forces (includ15 ing members of the National Guard and 

16 Reserves), veterans, and their dependents; 

17 ‘‘(ii) coordinate with other agencies, 

18 including the Department of Defense, the 

19 Department of Veterans Affairs, the De20 partment of Homeland Security, and the 

21 Bureau of Consumer Financial Protection, 

22 to ensure that members of the Armed 

23 Forces, veterans, and the dependents of 

24 members of the Armed Forces and vet25 erans, who are students, borrowers, or pomstockstill on DSK4VPTVN1PROD with BILLS

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1 tential borrowers, are aware of the avail2 ability and functions of the Ombudsman; 

3 and 

4 ‘‘(iii) issue to the Committee on 

5 Health, Education, Labor, and Pensions of 

6 the Senate, the Committee on Education 

7 and the Workforce of the House of Rep8 resentatives, the Committee on Veterans’ 

9 Affairs of the Senate, the Committee on 

10 Veterans’ Affairs of the House of Rep11 resentatives, the Committee on Armed 

12 Services of the Senate, and the Committee 

13 on Armed Services of the House of Rep14 resentatives an annual report on the chal15 lenges that such members of the Armed 

16 Forces, veterans, and dependents are fac17 ing as students, borrowers, and potential 

18 borrowers.’’. 

19 SEC. 116. RESPONSIBILITIES OF COVERED INSTITUTIONS, 

20 INSTITUTION-AFFILIATED ORGANIZATIONS, 

21 AND LENDERS. 

22 Section 152 (20 U.S.C. 1019a) is amended— 

23 (1) in the matter preceding clause (i) of sub24 section (a)(1)(A), by striking ‘‘(h) of section 487’’ 

25 and inserting ‘‘(g) of section 487’’; and 

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1 (2) in subsection (b)(1)(B)(i)(I), by striking 

2 ‘‘section 487(e)’’ and inserting ‘‘section 487(d)’’. 

3 SEC. 117. ESTABLISHMENT OF COMPLAINT RESOLUTION 

4 AND TRACKING SYSTEM. 

5 Title I (20 U.S.C. 1001 et seq.) is amended— 

6 (1) by striking section 155; and 

7 (2) by adding at the end the following: 

8 ‘‘PART F—COMPLAINT TRACKING SYSTEM 

9 ‘‘SEC. 161. COMPLAINT TRACKING SYSTEM. 

10 ‘‘(a) DEFINITION OF COMPLAINANT.—In this section, 

11 the term ‘complainant’ means— 

12 ‘‘(1) a student of a postsecondary educational 

13 institution; 

14 ‘‘(2) a family member of a student of a postsec15 ondary educational institution; 

16 ‘‘(3) a third party acting on behalf of a student 

17 of a postsecondary educational institution; or 

18 ‘‘(4) a staff member or employee of a postsec19 ondary educational institution. 

20 ‘‘(b) ESTABLISHMENT OF COMPLAINT TRACKING

21 SYSTEM.— 

22 ‘‘(1) ESTABLISHMENT OF COMPLAINT TRACK23 ING SYSTEM.— 

24 ‘‘(A) IN GENERAL.—Not later than 1 year 

25 after the enactment of the Higher Education 

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1 Affordability Act, the Secretary shall complete 

2 the establishment of a complaint tracking sys3 tem that includes a single, toll-free telephone 

4 number and a website to facilitate the central5 ized collection of, monitoring of, and response 

6 to complaints or inquiries regarding the edu7 cational practices and services, and recruiting 

8 and marketing practices, of all postsecondary 

9 educational institutions. 

10 ‘‘(B) PURPOSE.—The purpose of the com11 plaint tracking system is to address allegations 

12 of fraud, misrepresentation, or negligence with 

13 respect to recruitment and marketing to stu14 dents. 

15 ‘‘(2) ESTABLISHMENT OF COMPLAINT TRACK16 ING OFFICE.—The Secretary shall establish within 

17 the Department an office whose functions shall in18 clude establishing, administering, and disseminating 

19 widely information about the complaint tracking sys20 tem established under paragraph (1). The Secretary 

21 shall— 

22 ‘‘(A) to the extent necessary, combine and 

23 consolidate the other offices and functions of 

24 the Department in order to ensure that the of25 fice established under this paragraph is the sinmstockstill on DSK4VPTVN1PROD with BILLS

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1 gle point of contact for students and borrowers 

2 with complaints; and 

3 ‘‘(B) to the extent practicable, ensure that 

4 the office established in this paragraph will 

5 work with the Student Loan Ombudsman ap6 pointed in accordance with section 141(f) to as7 sist borrowers that have complaints regarding 

8 the educational practices and services, and re9 cruiting and marketing practices, of postsec10 ondary educational institutions. 

11 ‘‘(c) HANDLING OF COMPLAINTS.— 

12 ‘‘(1) TIMELY RESPONSE TO COMPLAINTS.—The 

13 Secretary shall establish, in consultation with the 

14 heads of appropriate agencies, reasonable procedures 

15 to provide a timely response to complainants, in 

16 writing where appropriate, to complaints against, or 

17 inquiries concerning, an institution of higher edu18 cation that receives funds under this Act. Each re19 sponse shall include a description of— 

20 ‘‘(A) the steps that have been taken by the 

21 Secretary in response to the complaint or in22 quiry; 

23 ‘‘(B) any responses received by the Sec24 retary from the institution of higher education; 

25 and 

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1 ‘‘(C) any additional actions that the Sec2 retary has taken, or plans to take, in response 

3 to the complaint or inquiry. 

4 ‘‘(2) TIMELY RESPONSE TO SECRETARY BY IN5 STITUTION OF HIGHER EDUCATION.—The Secretary 

6 shall notify each institution of higher education that 

7 receives funds under this Act and that is the subject 

8 of a complaint or inquiry under this section regard9 ing the complaint or inquiry. Not later than 60 days 

10 after receiving such notice, such institution shall 

11 provide a response to the Secretary concerning the 

12 complaint or inquiry, including— 

13 ‘‘(A) the steps that have been taken by the 

14 institution to respond to the complaint or in15 quiry; 

16 ‘‘(B) all responses received by the institu17 tion from the complainant; and 

18 ‘‘(C) any additional actions that the insti19 tution has taken, or plans to take, in response 

20 to the complaint or inquiry. 

21 ‘‘(3) FURTHER INVESTIGATION.—The Secretary 

22 may, in the event that the complaint is not ade23 quately resolved or addressed by the responses of the 

24 institution of higher education receiving funds under 

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1 tions of such institution or seek additional informa2 tion from or action by the institution. 

3 ‘‘(4) PROVISION OF INFORMATION.— 

4 ‘‘(A) IN GENERAL.—An institution of high5 er education that receives funds under this Act 

6 shall, in a timely manner, comply with a re7 quest by the Secretary for information in the 

8 control or possession of such institution con9 cerning a complaint or inquiry received by the 

10 Secretary under subsection (a), including sup11 porting written documentation, subject to sub12 paragraph (B). 

13 ‘‘(B) EXCEPTIONS.—An institution of 

14 higher education that receives funds under this 

15 Act shall not be required to make available 

16 under this subsection— 

17 ‘‘(i) any nonpublic or confidential in18 formation, including any confidential com19 mercial information; 

20 ‘‘(ii) any information collected by the 

21 institution for the purpose of preventing 

22 fraud or detecting or making any report 

23 regarding other unlawful or potentially un24 lawful conduct; or 

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1 ‘‘(iii) any information required to be 

2 kept confidential by any other provision of 

3 law. 

4 ‘‘(5) COMPLIANCE.—An institution of higher 

5 education that receives funds under this Act shall 

6 comply with the requirements to provide responses 

7 and information, in accordance with this subsection, 

8 as a condition of receiving such funds. 

9 ‘‘(d) TRANSPARENCY.— 

10 ‘‘(1) SHARING INFORMATION WITH FEDERAL

11 AND STATE AGENCIES.—As appropriate and in ac12 cordance with section 444 of the General Education 

13 Provisions Act (20 U.S.C. 1232g) (commonly re14 ferred to as the ‘‘Family Educational Rights and 

15 Privacy Act of 1974’’) and other laws, the Secretary 

16 shall coordinate with the heads of relevant Federal 

17 and State agencies to— 

18 ‘‘(A) collect complaints related to the com19 plaint tracking system described in subsection 

20 (b) from such agencies; and 

21 ‘‘(B) route such complaints to relevant 

22 Federal and State agencies when appropriate. 

23 ‘‘(2) INTERACTION WITH EXISTING COMPLAINT

24 SYSTEMS.—To the extent practicable, all procedures 

25 established under this section, and all coordination 

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1 carried out under paragraph (1), shall be done in ac2 cordance with the complaint tracking systems estab3 lished under Executive Order 13607 (77 Fed. Reg. 

4 25861; relating to establishing principles of excel5 lence for educational institutions serving 

6 servicemembers, veterans, spouses, and other family 

7 members). 

8 ‘‘(3) PUBLIC INFORMATION.— 

9 ‘‘(A) IN GENERAL.—The Secretary shall 

10 regularly publish on the website of the Depart11 ment information on the complaints and inquir12 ies received for each postsecondary educational 

13 institution under this section, including— 

14 ‘‘(i) the number of complaints and in15 quiries received; 

16 ‘‘(ii) the types of complaints and in17 quiries received; and 

18 ‘‘(iii) where applicable, information 

19 about the resolution of the complaints and 

20 inquiries. 

21 ‘‘(B) DATA PRIVACY.—In carrying out sub22 paragraph (A), the Secretary shall— 

23 ‘‘(i) comply with applicable data pri24 vacy laws and regulations; and 

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1 ‘‘(ii) ensure that personally identifi2 able information is not shared. 

3 ‘‘(C) APPEALS PROCESS.—The Secretary 

4 shall establish an appeals process to allow post5 secondary educational institutions to challenge 

6 or appeal a complaint after such complaint has 

7 been made public. A postsecondary educational 

8 institution shall provide adequate documenta9 tion to the Secretary to demonstrate that such 

10 a complaint is unfounded before the Secretary 

11 may decide to remove the complaint from the 

12 website of the Department. 

13 ‘‘(4) REPORTS.—Each year, the Secretary shall 

14 prepare and submit a report to the authorizing com15 mittees describing— 

16 ‘‘(A) the types and nature of complaints 

17 the Secretary has received under this section; 

18 ‘‘(B) the extent to which complainants are 

19 receiving relief pursuant to this section; 

20 ‘‘(C) whether particular types of com21 plaints are more common in a given sector of 

22 postsecondary educational institutions; 

23 ‘‘(D) any legislative recommendations that 

24 the Secretary determines are necessary to bet25 ter assist students and families; and 

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1 ‘‘(E) the schools with the highest volume 

2 of complaints, as determined by the Sec3 retary.’’. 

4 SEC. 118. PROPRIETARY EDUCATION OVERSIGHT COORDI5 NATION COMMITTEE. 

6 Title I (20 U.S.C. 1001 et seq.), as amended by sec7 tion 117, is further amended by adding at the end the 

8 following: 

9 ‘‘PART G—PROPRIETARY EDUCATION 

10 OVERSIGHT COORDINATION IMPROVEMENT 

11 ‘‘SEC. 166. DEFINITIONS. 

12 ‘‘In this part: 

13 ‘‘(1) EXECUTIVE OFFICER.—The term ‘execu14 tive officer’, with respect to a proprietary institution 

15 of higher education that is a publicly traded corpora16 tion, means— 

17 ‘‘(A) the president of such corporation; 

18 ‘‘(B) a vice president of such corporation 

19 who is in charge of a principal business unit, di20 vision, or function of such corporation, such as 

21 sales, administration, or finance; or 

22 ‘‘(C) any other officer or person who per23 forms a policy making function for such cor24 poration. 

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1 ‘‘(2) FEDERAL FUNDS.—The term ‘Federal 

2 funds’ means Federal funds described in section 

3 102(b)(2)(B). 

4 ‘‘(3) PROPRIETARY INSTITUTION OF HIGHER

5 EDUCATION.—The term ‘proprietary institution of 

6 higher education’ has the meaning given the term in 

7 section 102(b). 

8 ‘‘(4) STATE APPROVAL AGENCY.—The term 

9 ‘State approval agency’ means any State agency that 

10 determines whether an institution of higher edu11 cation is legally authorized within such State to pro12 vide a program of education beyond secondary edu13 cation. 

14 ‘‘(5) VETERANS SERVICE ORGANIZATION.—The 

15 term ‘veterans service organization’ means an orga16 nization recognized by the Secretary of Veterans Af17 fairs for the representation of veterans under section 

18 5902 of title 38, United States Code. 

19 ‘‘SEC. 167. ESTABLISHMENT OF COMMITTEE. 

20 ‘‘(a) ESTABLISHMENT.—There is established a com21 mittee to be known as the ‘Proprietary Education Over22 sight Coordination Committee’ (referred to in this title as 

23 the ‘Committee’) and to be composed of the head (or the 

24 designee of such head) of each of the following Federal 

25 entities: 

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1 ‘‘(1) The Department of Education. 

2 ‘‘(2) The Bureau of Consumer Financial Pro3 tection. 

4 ‘‘(3) The Department of Justice. 

5 ‘‘(4) The Securities and Exchange Commission. 

6 ‘‘(5) The Department of Defense. 

7 ‘‘(6) The Department of Veterans Affairs. 

8 ‘‘(7) The Federal Trade Commission. 

9 ‘‘(8) The Department of Labor. 

10 ‘‘(9) The Internal Revenue Service. 

11 ‘‘(10) At the discretion of the President, any 

12 other relevant Federal agency or department. 

13 ‘‘(b) PURPOSES.—The Committee shall have the fol14 lowing purposes: 

15 ‘‘(1) Coordinate Federal oversight of propri16 etary institutions of higher education to— 

17 ‘‘(A) improve enforcement of applicable 

18 Federal laws and regulations; 

19 ‘‘(B) increase accountability of proprietary 

20 institutions of higher education to students and 

21 taxpayers; and 

22 ‘‘(C) ensure the promotion of quality edu23 cation programs. 

24 ‘‘(2) Coordinate Federal activities to protect 

25 students from unfair, deceptive, abusive, unethical, 

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1 fraudulent, or predatory practices, policies, or proce2 dures of proprietary institutions of higher education. 

3 ‘‘(3) Encourage information sharing among 

4 agencies related to Federal investigations, audits, or 

5 inquiries of proprietary institutions of higher edu6 cation. 

7 ‘‘(4) Increase coordination and cooperation be8 tween Federal and State agencies, including State 

9 Attorneys General and State approval agencies, with 

10 respect to improving oversight and accountability of 

11 proprietary institutions of higher education. 

12 ‘‘(5) Develop best practices and consistency 

13 among Federal and State agencies in the dissemina14 tion of consumer information regarding proprietary 

15 institutions of higher education to ensure that stu16 dents, parents, and other stakeholders have easy ac17 cess to such information. 

18 ‘‘(c) MEMBERSHIP.— 

19 ‘‘(1) DESIGNEES.—For any designee described 

20 in subsection (a), the head of the member entity 

21 shall appoint a high-level official who exercises sig22 nificant decision making authority for the oversight 

23 or investigatory activities and responsibilities related 

24 to proprietary institutions of higher education of the 

25 respective Federal entity of such head. 

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1 ‘‘(2) CHAIRPERSON.—The Secretary of Edu2 cation or the designee of such Secretary shall serve 

3 as the Chairperson of the Committee. 

4 ‘‘(3) COMMITTEE SUPPORT.—The head of each 

5 entity described in subsection (a) shall ensure appro6 priate staff and officials of such entity are available 

7 to support the Committee-related work of such enti8 ty. 

9 ‘‘SEC. 168. MEETINGS. 

10 ‘‘(a) COMMITTEE MEETINGS.—The members of the 

11 Committee shall meet regularly, but not less than once 

12 during each quarter of each fiscal year, to carry out the 

13 purposes described in section 167(b). 

14 ‘‘(b) MEETINGS WITH STATE AGENCIES AND STAKE15 HOLDERS.—The Committee shall meet not less than once 

16 each fiscal year, and shall otherwise interact regularly, 

17 with State Attorneys General, State approval agencies, 

18 veterans service organizations, and consumer advocates to 

19 carry out the purposes described in section 167(b). 

20 ‘‘SEC. 169. REPORT. 

21 ‘‘(a) IN GENERAL.—The Committee shall submit a 

22 report each year to the authorizing committees, and any 

23 other committee of Congress that the Committee deter24 mines appropriate. 

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1 ‘‘(b) PUBLIC ACCESS.—The report described in sub2 section (a) shall be made available to the public in a man3 ner that is easily accessible to parents, students, and other 

4 stakeholders in accordance with the best practices devel5 oped under section 167(b)(5). 

6 ‘‘(c) CONTENTS.— 

7 ‘‘(1) IN GENERAL.—The report shall include— 

8 ‘‘(A) an accounting of any action (as de9 fined in paragraph (3)) taken by the Federal 

10 Government, any member entity of the Com11 mittee, or a State— 

12 ‘‘(i) to enforce Federal or State laws 

13 and regulations applicable to proprietary 

14 institutions of higher education; 

15 ‘‘(ii) to hold proprietary institutions of 

16 higher education accountable to students 

17 and taxpayers; and 

18 ‘‘(iii) to promote quality education 

19 programs; 

20 ‘‘(B) a summary of complaints against 

21 each proprietary institution of higher education 

22 received by any member entity of the Com23 mittee; 

24 ‘‘(C) the data described in paragraph (2) 

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1 tutions of higher education that the Committee 

2 determines appropriate; and 

3 ‘‘(D) recommendations of the Committee 

4 for such legislative and administrative actions 

5 as the Committee determines are necessary 

6 to— 

7 ‘‘(i) improve enforcement of applicable 

8 Federal laws; 

9 ‘‘(ii) increase accountability of propri10 etary institutions of higher education to 

11 students and taxpayers; and 

12 ‘‘(iii) ensure the promotion of quality 

13 education programs. 

14 ‘‘(2) DATA.— 

15 ‘‘(A) INDUSTRY-WIDE DATA.—The report 

16 shall include data on all proprietary institutions 

17 of higher education that consists of information 

18 regarding— 

19 ‘‘(i) the total amount of Federal funds 

20 that proprietary institutions of higher edu21 cation received for the previous academic 

22 year, and the percentage of the total 

23 amount of Federal funds provided to insti24 tutions of higher education (as defined in 

25 section 102) for such previous academic 

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1 year that reflects such total amount of 

2 Federal funds provided to proprietary in3 stitutions of higher education for such pre4 vious academic year; 

5 ‘‘(ii) the total amount of Federal 

6 funds that proprietary institutions of high7 er education disbursed or delivered, on be8 half of a student, or to a student to be 

9 used to attend an institution of higher edu10 cation, for the previous academic year, 

11 disaggregated by— 

12 ‘‘(I) educational assistance in the 

13 form of a loan provided under title IV; 

14 ‘‘(II) educational assistance in 

15 the form of a grant provided under 

16 title IV; 

17 ‘‘(III) educational assistance pro18 vided under chapter 33 of title 38, 

19 United States Code; 

20 ‘‘(IV) tuition assistance provided 

21 under section 2007 of title 10, United 

22 States Code; 

23 ‘‘(V) assistance provided under 

24 section 1784a of title 10, United 

25 States Code; and 

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1 ‘‘(VI) Federal funds not de2 scribed in subclauses (I) through (V); 

3 ‘‘(iii) the percentage of the total 

4 amount of Federal funds provided to insti5 tutions of higher education (as defined in 

6 section 102) for such previous academic 

7 year for each of the programs described in 

8 subclauses (I) through (V) of clause (ii) 

9 that reflects such total amount of Federal 

10 funds provided to proprietary institutions 

11 of higher education for such previous aca12 demic year for each of such programs; 

13 ‘‘(iv) the average retention and grad14 uation rates for students pursuing a degree 

15 at proprietary institutions of higher edu16 cation; 

17 ‘‘(v) the average cohort default rate 

18 (as defined in section 435(m)) for propri19 etary institutions of higher education, and 

20 an annual list of cohort default rates (as 

21 defined in such section) for all proprietary 

22 institutions of higher education; 

23 ‘‘(vi) for careers requiring the passage 

24 of a licensing examination— 

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1 ‘‘(I) the passage rate of individ2 uals who attended a proprietary insti3 tution of higher education taking such 

4 examination to pursue such a career; 

5 and 

6 ‘‘(II) the passage rate of all indi7 viduals taking such exam to pursue 

8 such a career; and 

9 ‘‘(vii) the use of private education 

10 loans at proprietary institutions of higher 

11 education that includes— 

12 ‘‘(I) an estimate of the total 

13 number of such loans; and 

14 ‘‘(II) information on the average 

15 debt, default rate, and interest rate of 

16 such loans. 

17 ‘‘(B) DATA ON PUBLICLY TRADED COR18 PORATIONS.— 

19 ‘‘(i) IN GENERAL.—The report shall 

20 include data on proprietary institutions of 

21 higher education that are publicly traded 

22 corporations, consisting of information 

23 on— 

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1 ‘‘(I) any pre-tax profit of such 

2 proprietary institutions of higher edu3 cation— 

4 ‘‘(aa) reported as a total 

5 amount and an average percent 

6 of revenue for all such propri7 etary institutions of higher edu8 cation; and 

9 ‘‘(bb) reported for each such 

10 proprietary institution of higher 

11 education; 

12 ‘‘(II) revenue for such propri13 etary institutions of higher education 

14 spent on recruiting and marketing ac15 tivities, student instruction, and stu16 dent support services, reported— 

17 ‘‘(aa) as a total amount and 

18 an average percent of revenue for 

19 all such proprietary institutions 

20 of higher education; and 

21 ‘‘(bb) for each such propri22 etary institution of higher edu23 cation; 

24 ‘‘(III) total compensation pack25 ages of the executive officers of each 

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1 such proprietary institution of higher 

2 education; 

3 ‘‘(IV) a list of institutional loan 

4 programs offered by each such propri5 etary institution of higher education 

6 that includes information on the de7 fault and interest rates of such pro8 grams; and 

9 ‘‘(V) the data described in 

10 clauses (ii) and (iii). 

11 ‘‘(ii) DISAGGREGATED BY OWNER12 SHIP.—The report shall include data on 

13 proprietary institutions of higher education 

14 that are publicly traded corporations, 

15 disaggregated by corporate or parent enti16 ty, brand name, and campus, consisting 

17 of— 

18 ‘‘(I) the total cost of attendance 

19 for each program at each such propri20 etary institution of higher education, 

21 and information comparing such total 

22 cost for each such program to— 

23 ‘‘(aa) the total cost of at24 tendance for each program at 

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1 each public institution of higher 

2 education; and 

3 ‘‘(bb) the average total cost 

4 of attendance for each program 

5 at all institutions of higher edu6 cation, including such institutions 

7 that are public and such institu8 tions that are private; 

9 ‘‘(II) total enrollment, 

10 disaggregated by— 

11 ‘‘(aa) individuals enrolled in 

12 programs taken online; and 

13 ‘‘(bb) individuals enrolled in 

14 programs that are not taken on15 line; 

16 ‘‘(III) the average retention and 

17 graduation rates for students pur18 suing a degree at such proprietary in19 stitutions of higher education; 

20 ‘‘(IV) the percentage of students 

21 enrolled in such proprietary institu22 tions of higher education who com23 plete a program of such an institution 

24 within— 

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1 ‘‘(aa) the standard period of 

2 completion for such program; and 

3 ‘‘(bb) a period that is 150 

4 percent of such standard period 

5 of completion; 

6 ‘‘(V) the total cost of attendance 

7 for each program at such proprietary 

8 institutions of higher education; 

9 ‘‘(VI) the average cohort default 

10 rate, as defined in section 435(m), for 

11 such proprietary institutions of higher 

12 education, and an annual list of co13 hort default rates (as defined in such 

14 section) for all proprietary institutions 

15 of higher education; 

16 ‘‘(VII) the median educational 

17 debt incurred by students who com18 plete a program at such a proprietary 

19 institution of higher education; 

20 ‘‘(VIII) the median educational 

21 debt incurred by students who start 

22 but do not complete a program at 

23 such a proprietary institution of high24 er education; 

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1 ‘‘(IX) the job placement rate for 

2 students who complete a program at 

3 such a proprietary institution of high4 er education and the type of employ5 ment obtained by such students; 

6 ‘‘(X) for careers requiring the 

7 passage of a licensing examination, 

8 the rate of individuals who attended 

9 such a proprietary institution of high10 er education and passed such an ex11 amination; and 

12 ‘‘(XI) the number of complaints 

13 from students enrolled in such propri14 etary institutions of higher education 

15 who have submitted a complaint to 

16 any member entity of the Committee. 

17 ‘‘(iii) DEPARTMENT OF DEFENSE AND

18 VETERANS AFFAIRS ASSISTANCE.— 

19 ‘‘(I) IN GENERAL.—To the extent 

20 practicable, the report shall provide 

21 information on the data described in 

22 clause (ii) for individuals using, to pay 

23 for the costs of attending such a pro24 prietary institution of higher edu25 cation, Federal funds provided under 

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1 title 10, United States Code or title 

2 38, United States Code. 

3 ‘‘(II) REVENUE.—The report 

4 shall provide information on the rev5 enue of proprietary institutions of 

6 higher education that are publicly 

7 traded corporations that is derived 

8 from the Federal funds described in 

9 subclause (I). 

10 ‘‘(C) COMPARISON DATA.—To the extent 

11 practicable, the report shall provide information 

12 comparing the data described in subparagraph 

13 (B) for proprietary institutions of higher edu14 cation that are publicly traded corporations 

15 with such data for public institutions of higher 

16 education disaggregated by State. 

17 ‘‘(3) ACCOUNTING OF ANY ACTION.—For the 

18 purposes of paragraph (1)(A), the term ‘any action’ 

19 shall include— 

20 ‘‘(A) a complaint filed by a Federal or 

21 State agency in a local, State, Federal, or tribal 

22 court; 

23 ‘‘(B) an administrative proceeding by a 

24 Federal or State agency involving noncompli25 ance of any applicable law or regulation; or 

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1 ‘‘(C) any other review, audit, or adminis2 trative process by any Federal or State agency 

3 that results in a penalty, suspension, or termi4 nation from any Federal or State program. 

5 ‘‘SEC. 170. WARNING LIST FOR PARENTS AND STUDENTS. 

6 ‘‘(a) IN GENERAL.—Each academic year, the Com7 mittee shall publish a list to be known as the ‘Warning 

8 List for Parents and Students’ to be comprised of propri9 etary institutions of higher education— 

10 ‘‘(1) that have engaged in illegal activity during 

11 the previous academic year as determined by a Fed12 eral or State court; 

13 ‘‘(2) that have entered into a settlement result14 ing in a monetary payment; 

15 ‘‘(3) that have had any higher education pro16 gram withdrawn or suspended; or 

17 ‘‘(4) for which the Committee has sufficient evi18 dence of widespread or systemic unfair, deceptive, 

19 abusive, unethical, fraudulent, or predatory prac20 tices, policies, or procedures that pose a threat to 

21 the academic success, financial security, or general 

22 best interest of students. 

23 ‘‘(b) DETERMINATIONS.—In making a determination 

24 pursuant to subsection (a)(4), the Committee may con25 sider evidence that includes the following: 

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1 ‘‘(1) Any consumer complaint collected by any 

2 member entity of the Committee. 

3 ‘‘(2) Any complaint filed by a Federal or State 

4 agency in a Federal, State, local, or tribal court. 

5 ‘‘(3) Any administrative proceeding by a Fed6 eral or State agency involving noncompliance of any 

7 applicable law or regulation. 

8 ‘‘(4) Any other review, audit, or administrative 

9 process by any Federal or State agency that results 

10 in a penalty, suspension, or termination from any 

11 Federal or State program. 

12 ‘‘(5) Data or information submitted by a pro13 prietary institution of higher education to any ac14 crediting agency or association recognized by the 

15 Secretary of Education pursuant to section 496 or 

16 the findings or adverse actions of any such accred17 iting agency or association. 

18 ‘‘(6) Information submitted by a proprietary in19 stitution of higher education to any member entity 

20 of the Committee. 

21 ‘‘(7) Any other evidence that the Committee de22 termines relevant in making a determination pursu23 ant to subsection (a)(4). 

24 ‘‘(c) PUBLICATION.—Not later than July 1 of each 

25 fiscal year, the Committee shall publish the list described 

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1 in subsection (a) prominently and in a manner that is eas2 ily accessible to parents, students, and other stakeholders 

3 in accordance with any best practices developed under sec4 tion 167(b)(5).’’. 

5 TITLE II—IMPROVING 

6 EDUCATOR PREPARATION 

7 SEC. 201. IMPROVING EDUCATOR PREPARATION. 

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

9 as follows: 

10 ‘‘TITLE II—IMPROVING 

11 EDUCATOR PREPARATION 

12 ‘‘SEC. 200. DEFINITIONS. 

13 ‘‘In this title: 

14 ‘‘(1) APPLIED LEARNING.—The term ‘applied 

15 learning’ means a strategy that— 

16 ‘‘(A) engages students in opportunities to 

17 apply rigorous academic content aligned with 

18 postsecondary-level expectations to real world 

19 experience, through such means as work experi20 ence, work-based learning, problem-based learn21 ing, project-based learning or service-learning; 

22 and 

23 ‘‘(B) develops students’ cognitive com24 petencies and pertinent employability skills. 

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1 ‘‘(2) CLINICAL TRAINING.—The term ‘clinical 

2 training’ means sustained and high-quality 

3 preservice experiences based on scientifically valid 

4 research to further develop the teaching skills or 

5 leadership skills of prospective teachers or school 

6 leaders, including (as applicable) early childhood 

7 educators. Such experiences shall include each of the 

8 following: 

9 ‘‘(A) Experiential clinical training in an el10 ementary school or secondary school that, to 

11 the extent practicable, is aligned with the grade 

12 level and subject area where the teacher or 

13 school leader will be placed upon program com14 pletion, and that includes— 

15 ‘‘(i) opportunities for teacher or 

16 school leader candidates to develop and 

17 demonstrate teaching skills or leadership 

18 skills as supervised classroom teachers or 

19 school leaders to better prepare such teach20 ers or school leaders to meet the needs of 

21 serving in high-need local educational 

22 agencies, high-need schools, or schools in 

23 rural areas, or being a teacher in a high24 need subject or field; 

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1 ‘‘(ii) opportunities to work with di2 verse learners; 

3 ‘‘(iii) ongoing assessment and regular 

4 opportunities for feedback for teacher can5 didates or school leader candidates from 

6 faculty and current teachers or school lead7 ers; 

8 ‘‘(iv) aligning school-based clinical ex9 periences with coursework in educational 

10 theory and content through supervised 

11 clinical practice and regular feedback on 

12 the development of teaching skills or lead13 ership skills and performance that include 

14 integrating social and emotional develop15 ment, building a positive classroom or 

16 school culture and climate, and developing 

17 effective classroom management or school 

18 leadership techniques; 

19 ‘‘(v) for teachers, developing the abil20 ity to— 

21 ‘‘(I) link teaching practice to stu22 dent learning; 

23 ‘‘(II) create effective teaching 

24 units and lesson plans that provide all 

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1 tent knowledge, think critically, solve 

2 complex problems, communicate effec3 tively, and work collaboratively with 

4 their peers; 

5 ‘‘(III) develop and implement 

6 formative and interim assessments to 

7 diagnose student learning and modify 

8 instruction as a result of the data de9 rived from such assessments; 

10 ‘‘(IV) implement evidence-based 

11 differentiated instruction strategies; 

12 and 

13 ‘‘(V) teach diverse learners, in14 cluding students with special needs 

15 and English learners; 

16 ‘‘(vi) for school leaders, developing the 

17 ability to— 

18 ‘‘(I) lead effective teams of teach19 ers; 

20 ‘‘(II) identify and model effective 

21 classroom practices; 

22 ‘‘(III) learn how to recruit and 

23 support effective teachers; and 

24 ‘‘(IV) engage community mem25 bers and parents. 

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1 ‘‘(B) Align the coursework offered at the 

2 educator preparation entity with the needs of 

3 the local educational agencies, including the 

4 academic needs of students, served by the edu5 cator preparation entity and the clinical experi6 ences offered under subparagraph (A). 

7 ‘‘(C) Provide high-quality mentoring. 

8 ‘‘(D) Be offered over the course of an edu9 cator preparation program. 

10 ‘‘(E) Be designed through collaboration be11 tween faculty or staff at the educator prepara12 tion entity and employees, including teachers 

13 and school leaders, of the local educational 

14 agencies served by the educator preparation en15 tity. 

16 ‘‘(F) Provide support and training for fac17 ulty or staff at educator preparation entities 

18 and for individuals who serve as mentors for 

19 new and prospective teachers or school leaders. 

20 ‘‘(3) CORE ACADEMIC SUBJECTS.—The term 

21 ‘core academic subjects’ has the meaning given the 

22 term in section 9101 of the Elementary and Sec23 ondary Education Act of 1965. 

24 ‘‘(4) EARLY CHILDHOOD EDUCATOR.—The 

25 term ‘early childhood educator’ means an individual 

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1 with primary responsibility for the education of chil2 dren in an early childhood education program. 

3 ‘‘(5) EDUCATIONAL SERVICE AGENCY.—The 

4 term ‘educational service agency’ has the meaning 

5 given the term in section 9101 of the Elementary 

6 and Secondary Education Act of 1965. 

7 ‘‘(6) EDUCATOR PREPARATION ENTITY.—The 

8 term ‘educator preparation entity’ means a teacher 

9 preparation entity or a school leader preparation en10 tity. 

11 ‘‘(7) EDUCATOR PREPARATION PROGRAM.—The 

12 term ‘educator preparation program’ means a teach13 er preparation program or a school leader prepara14 tion program offered by an educator preparation en15 tity, including an early childhood education teacher 

16 or school leader program. 

17 ‘‘(8) EDUCATOR RESIDENCY PROGRAM.—The 

18 term ‘educator residency program’ means a teacher 

19 residency program or a school leader residency pro20 gram within a teacher preparation program or 

21 school leader preparation program. 

22 ‘‘(9) EFFECTIVE LITERACY INSTRUCTION.—The 

23 term ‘effective literacy instruction’ means literacy in24 struction that— 

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1 ‘‘(A) includes age-appropriate, explicit, sys2 tematic, and intentional instruction in phono3 logical awareness, phonic decoding, vocabulary, 

4 language structure, reading fluency, and read5 ing comprehension; 

6 ‘‘(B) includes age-appropriate, explicit in7 struction in writing, including opportunities for 

8 children to write with clear purposes, with crit9 ical reasoning appropriate to the topic and pur10 pose, and with specific instruction and feedback 

11 from instructional staff; 

12 ‘‘(C) uses differentiated instructional ap13 proaches, including individual and small group 

14 instruction and discussion; 

15 ‘‘(D) uses age-appropriate, valid, and reli16 able screening assessments, diagnostic assess17 ments, formative assessment processes, and 

18 summative assessments to identify a child’s 

19 learning needs, to inform instruction, and to 

20 monitor the child’s progress and the effects of 

21 instruction; 

22 ‘‘(E) uses strategies to enhance children’s 

23 motivation to read and write and children’s en24 gagement in self-directed learning; 

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1 ‘‘(F) incorporates the principles of uni2 versal design for learning; 

3 ‘‘(G) depends on teachers’ collaboration in 

4 planning, instruction, and assessing a child’s 

5 progress and on continuous professional learn6 ing; and 

7 ‘‘(H) links literacy instruction to the chal8 lenging academic content standards under sec9 tion 1111(b)(1) of the Elementary and Sec10 ondary Education Act of 1965, including the 

11 ability to navigate, understand, and write 

12 about, complex print and digital subject matter. 

13 ‘‘(10) ELIGIBLE PARTNERSHIP.—Except as oth14 erwise provided in section 216, the term ‘eligible 

15 partnership’ means an entity that— 

16 ‘‘(A) shall include— 

17 ‘‘(i) a high-need local educational 

18 agency; 

19 ‘‘(ii)(I) a high-need school or a con20 sortium of high-need schools served by the 

21 high-need local educational agency; or 

22 ‘‘(II) as applicable, a high-need early 

23 childhood education program; 

24 ‘‘(iii) a partner institution; and 

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1 ‘‘(iv) a school, department, or educa2 tor preparation program within such part3 ner institution; and 

4 ‘‘(B) may include any of the following: 

5 ‘‘(i) The Governor of the State. 

6 ‘‘(ii) The State educational agency. 

7 ‘‘(iii) The State board of education. 

8 ‘‘(iv) The State agency for higher edu9 cation. 

10 ‘‘(v) A school or department of arts 

11 and sciences within such partner institu12 tion. 

13 ‘‘(vi) A business. 

14 ‘‘(vii) A public or private nonprofit 

15 educational organization. 

16 ‘‘(viii) An educational service agency. 

17 ‘‘(ix) A teacher organization. 

18 ‘‘(x) A high-performing local edu19 cational agency, or a consortium of such 

20 local educational agencies, that can serve 

21 as a resource to the partnership. 

22 ‘‘(xi) A charter school (as defined in 

23 section 5210 of the Elementary and Sec24 ondary Education Act of 1965). 

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1 ‘‘(xii) A school or department within 

2 the partner institution that focuses on psy3 chology and human development. 

4 ‘‘(xiii) A school or department within 

5 the partner institution with comparable ex6 pertise in the disciplines of teaching, learn7 ing, and child and adolescent development. 

8 ‘‘(xiv) An entity operating a program 

9 that provides alternative routes to State 

10 certification of teachers or school leaders. 

11 ‘‘(11) ENGLISH LEARNER.—The term ‘English 

12 learner’ means an individual— 

13 ‘‘(A) who is aged 3 through 21; 

14 ‘‘(B) who is enrolled or preparing to enroll 

15 in an elementary school or secondary school; 

16 ‘‘(C)(i) who was not born in the United 

17 States; 

18 ‘‘(ii) whose native language is a language 

19 other than English; 

20 ‘‘(iii)(I) who is a Native American or Alas21 ka Native, or a native resident of the outlying 

22 areas; and 

23 ‘‘(II) who comes from an environment 

24 where a language other than English has had 

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1 a significant impact on the individual’s level of 

2 English language proficiency; or 

3 ‘‘(iv) who is migratory, whose native lan4 guage is a language other than English, and 

5 who comes from an environment where a lan6 guage other than English is dominant; and 

7 ‘‘(D) whose difficulties in speaking, read8 ing, writing, or understanding the English lan9 guage may be sufficient to deny the indi10 vidual— 

11 ‘‘(i) the ability to meet or exceed the 

12 State challenging student academic 

13 achievement standards under section 

14 1111(b)(1) of the Elementary and Sec15 ondary Education Act of 1965 in a subject 

16 for the individual’s grade level, as deter17 mined based on the State academic assess18 ments described in section 1111(b)(3) of 

19 such Act; 

20 ‘‘(ii) the ability to successfully achieve 

21 in classrooms where the language of in22 struction is English; or 

23 ‘‘(iii) the opportunity to participate 

24 fully in society. 

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1 ‘‘(12) HIGH-NEED EARLY CHILDHOOD EDU2 CATION PROGRAM.—The term ‘high-need early child3 hood education program’ means an early childhood 

4 education program serving children from low-income 

5 families that is located within the geographic area 

6 served by a high-need local educational agency, par7 ticularly focused on a prekindergarten through third 

8 grade continuum. 

9 ‘‘(13) HIGH-NEED LOCAL EDUCATIONAL AGEN10 CY.—The term ‘high-need local educational agency’ 

11 means a local educational agency— 

12 ‘‘(A)(i) for which not less than 20 percent 

13 of the children served by the agency are chil14 dren from low-income families; 

15 ‘‘(ii) that serves not fewer than 10,000 

16 children from low-income families; 

17 ‘‘(iii) that meets the eligibility require18 ments for funding under the Small, Rural 

19 School Achievement Program under section 

20 6211(b) of the Elementary and Secondary Edu21 cation Act of 1965; or 

22 ‘‘(iv) that meets the eligibility require23 ments for funding under the Rural and Low-In24 come School Program under section 6221(b) of 

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1 the Elementary and Secondary Education Act 

2 of 1965; and 

3 ‘‘(B)(i) for which 1 or more schools served 

4 by the agency is identified by the State as a 

5 low-performing school under section 1116 of the 

6 Elementary and Secondary Education Act of 

7 1965 or identified as eligible to receive funds 

8 under section 1003(g) of such Act; or 

9 ‘‘(ii) for which there is— 

10 ‘‘(I) a shortage of teachers in high11 need subjects or fields; or 

12 ‘‘(II) a high teacher turnover rate. 

13 ‘‘(14) HIGH-NEED SCHOOL.—The term ‘high14 need school’ means— 

15 ‘‘(A) an elementary school or middle school 

16 in which not less than 50 percent of the en17 rolled students are children from low-income 

18 families; or 

19 ‘‘(B) a high school in which not less than 

20 40 percent of the enrolled students are children 

21 from low-income families, which may be cal22 culated using comparable data from feeder 

23 schools. 

24 ‘‘(15) HIGH-QUALITY PROFESSIONAL DEVELOP25 MENT.—The term ‘high-quality professional developmstockstill on DSK4VPTVN1PROD with BILLS

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1 ment’ means activities based on scientifically valid 

2 research that are coordinated and aligned to in3 crease the effectiveness of teachers or school leaders 

4 and are regularly assessed to determine the activi5 ties’ effectiveness, and that— 

6 ‘‘(A) are designed and implemented to im7 prove student achievement and classroom prac8 tice; 

9 ‘‘(B) are aligned with— 

10 ‘‘(i) State challenging academic con11 tent standards and State challenging stu12 dent academic achievement standards 

13 adopted under section 1111(b) of the Ele14 mentary and Secondary Education Act of 

15 1965; 

16 ‘‘(ii) related academic and school im17 provement goals of the school, local edu18 cational agency, and, as appropriate, state19 wide and local curricula; 

20 ‘‘(iii) for teachers, rigorous teaching 

21 standards; and 

22 ‘‘(iv) for school leaders, rigorous 

23 standards for leadership skills; 

24 ‘‘(C) increase teachers’ or school leaders’— 

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1 ‘‘(i) knowledge and understanding 

2 about how students learn; 

3 ‘‘(ii) academic content knowledge; 

4 ‘‘(iii) knowledge and understanding 

5 about the link between social and emo6 tional development and student outcomes; 

7 ‘‘(iv) ability to analyze student work 

8 and achievement data from multiple 

9 sources, including teacher developed as10 sessments and how to adjust instructional 

11 strategies, assessments, and materials 

12 based on such analysis; 

13 ‘‘(v) ability to instruct students with 

14 disabilities and English learners so that 

15 such students with disabilities and English 

16 learners are able to meet the State chal17 lenging academic content standards and 

18 State challenging student academic 

19 achievement standards; 

20 ‘‘(vi) ability to effectively manage a 

21 classroom, including the ability to— 

22 ‘‘(I) implement multi-tiered sys23 tems of support; 

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1 ‘‘(II) create a positive learning 

2 environment that conveys high expec3 tations for all students; and 

4 ‘‘(III) equitably implement school 

5 discipline policies; 

6 ‘‘(vii) ability to lead teams of effective 

7 teachers, in the case of school leaders; 

8 ‘‘(viii) ability to implement opportuni9 ties for applied learning; 

10 ‘‘(ix) knowledge and understanding of 

11 culturally relevant practices; and 

12 ‘‘(x) teaching skills and school leader13 ship skills; 

14 ‘‘(D) are informed by, and aligned with, 

15 such teachers’ and school leaders’ evaluations; 

16 ‘‘(E) are collaborative, data-driven, and 

17 classroom- or school-focused; 

18 ‘‘(F) provide the teacher or school leader 

19 with high-quality feedback with actionable steps 

20 to improve their practice; 

21 ‘‘(G) are sustained, intensive, and job-em22 bedded, and not limited in scope to a 1-day or 

23 short-term workshop or conference; 

24 ‘‘(H) are, as appropriate, designed to— 

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1 ‘‘(i) provide teachers or school leaders 

2 with the knowledge and skills to work more 

3 effectively with parents and families; and 

4 ‘‘(ii) where applicable, address the 

5 transition from prekindergarten to elemen6 tary school, including issues related to 

7 school readiness across all major domains 

8 of early learning, as well as transitions 

9 from elementary school to middle school 

10 and middle school to high school; and 

11 ‘‘(I) for school leaders, provide comprehen12 sive opportunities to practice effective strategies 

13 and help school leaders develop the abilities to 

14 lead effective teams of teachers and maintain 

15 active engagement with families and community 

16 organizations. 

17 ‘‘(16) HIGHLY COMPETENT.—The term ‘highly 

18 competent’, when used with respect to an early 

19 childhood educator, means an educator— 

20 ‘‘(A) with specialized education and train21 ing in development and education of young chil22 dren from birth until entry into kindergarten, 

23 including children with disabilities and English 

24 learners; 

25 ‘‘(B) with— 

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1 ‘‘(i) a baccalaureate degree in an aca2 demic major in the arts and sciences; or 

3 ‘‘(ii) an associate’s degree in a related 

4 educational area; and 

5 ‘‘(C) who has demonstrated a high level of 

6 knowledge and use of content and pedagogy in 

7 the relevant areas associated with quality early 

8 childhood education. 

9 ‘‘(17) INDUCTION PROGRAM.—The term ‘induc10 tion program’ means a formalized program for new 

11 teachers or school leaders during not less than the 

12 first 2 years of teaching or leading a school that is 

13 designed to provide support for, improve the profes14 sional performance of, and advance the retention of 

15 beginning teachers or school leaders. Such program 

16 shall promote effective teaching or leadership skills 

17 and shall include the following components: 

18 ‘‘(A) High-quality mentoring. 

19 ‘‘(B) Periodic, structured time for collabo20 ration and observation opportunities with teach21 ers or school leaders, as well as interdisciplinary 

22 collaboration among highly effective teachers, 

23 school leaders, faculty, researchers, other edu24 cators, and other staff who prepare new teach25 ers or school leaders. 

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1 ‘‘(C) The application of empirically based 

2 practice and scientifically valid research on in3 structional and behavioral interventions. 

4 ‘‘(D) Opportunities for new teachers or 

5 school leaders to draw directly on the expertise 

6 of mentors, faculty, local educational agency 

7 personnel, and researchers to support the inte8 gration of empirically based practice and sci9 entifically valid research with practice. 

10 ‘‘(E) The development of content expertise. 

11 ‘‘(F) Faculty who— 

12 ‘‘(i) model the integration of research 

13 and practice in the classroom and innova14 tive practices that support the acquisition 

15 and transferability of college- and career16 ready skills, including critical thinking, 

17 complex problem solving, effective commu18 nication and collaboration, such as through 

19 project-based and applied learning; 

20 ‘‘(ii) assist new teachers and school 

21 leaders with the effective use and integra22 tion of technology in instruction; 

23 ‘‘(iii) for teachers, assist in the cre24 ation and use of teacher-developed assessmstockstill on DSK4VPTVN1PROD with BILLS

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1 ments for the purpose of informing and 

2 targeting instructional practice; 

3 ‘‘(iv) demonstrate the content knowl4 edge and skills necessary to be effective in 

5 advancing student achievement; and 

6 ‘‘(v) are able to substantially partici7 pate in the early childhood program or ele8 mentary school or secondary school class9 room setting, as applicable, which may in10 clude receiving release time or workload 

11 credit for such participation. 

12 ‘‘(G) Assistance with the understanding of 

13 data, particularly student assessment achieve14 ment data, including data from interim, forma15 tive, and summative assessments and the appli16 cation of such data in classroom instruction or 

17 school leadership. 

18 ‘‘(H) Regular, structured observation and 

19 evaluation of new teachers or school leaders, in20 cluding post-observation feedback and dialogue, 

21 by multiple-trained evaluators, using valid and 

22 reliable measures of teaching and leadership 

23 skills. 

24 ‘‘(18) LOW-INCOME FAMILY.—The term ‘low-in25 come family’ means a family who— 

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1 ‘‘(A) has a student who is eligible for a 

2 free or reduced priced lunch under the Richard 

3 B. Russell National School Lunch Act; 

4 ‘‘(B) is eligible for means tested benefits or 

5 public assistance at the local, State, or Federal 

6 level; or 

7 ‘‘(C) lives in a high-poverty area or has a 

8 student who attends an elementary school or 

9 high school with an attendance area in a high10 poverty area. 

11 ‘‘(19) MENTOR.—The term ‘mentor’ means an 

12 experienced educator who shall— 

13 ‘‘(A) provide opportunities for prospective 

14 or new teachers or school leaders to develop and 

15 demonstrate teaching skills or school leadership 

16 skills to better prepare such prospective or new 

17 teachers or school leaders to meet the unique 

18 needs of serving in high-need local educational 

19 agencies, high-need schools, or schools in rural 

20 areas, or being a teacher in a high-need subject 

21 or field; 

22 ‘‘(B) provide ongoing assessment of and 

23 regular feedback to mentees; 

24 ‘‘(C) possess— 

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1 ‘‘(i) a demonstrated record of strong 

2 teaching skills or leadership skills and im3 proving student achievement; 

4 ‘‘(ii) strong verbal and written com5 munication skills; and 

6 ‘‘(iii) knowledge, skills, and attitudes 

7 to— 

8 ‘‘(I) establish and maintain a 

9 professional learning community that 

10 uses data, feedback, and coaching to 

11 improve mentee performance; and 

12 ‘‘(II) create and maintain a 

13 learning culture for mentees that pro14 vides a climate conducive to the pro15 fessional development of the mentees; 

16 and 

17 ‘‘(D) have a demonstrated record of im18 proving student achievement. 

19 ‘‘(20) MENTORING.—The term ‘mentoring’ 

20 means the advising of prospective or new educators 

21 through a program that includes the following: 

22 ‘‘(A) Clear criteria for the selection of 

23 mentors that takes into account the mentor’s 

24 effectiveness. 

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1 ‘‘(B) Provides high-quality training for 

2 such mentors in how to support teachers or 

3 school leaders effectively, including— 

4 ‘‘(i) for teachers, instructional strate5 gies for literacy instruction; and 

6 ‘‘(ii) for teachers or school leaders, in7 struction in classroom management or 

8 school management techniques, including 

9 approaches that improve the schoolwide cli10 mate for learning, such as social and emo11 tional development strategies and multi12 tiered systems of support. 

13 ‘‘(C) Provides regularly scheduled time for 

14 collaboration, examination of student work and 

15 achievement data, joint professional develop16 ment opportunities, and ongoing opportunities 

17 for mentors and mentees to observe each oth18 er’s teaching or leading, and identify and ad19 dress areas for improvement. 

20 ‘‘(D) Matches mentees with mentors in the 

21 same field, grade, grade span, or subject area. 

22 ‘‘(E) Provides paid release time for men23 tors, as applicable. 

24 ‘‘(21) PARTNER INSTITUTION.—The term ‘part25 ner institution’ means a nonprofit institution of 

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1 higher education, which may include a 2-year non2 profit institution of higher education offering a dual 

3 program with a 4-year nonprofit institution of high4 er education, participating in an eligible partnership 

5 that has a teacher preparation program— 

6 ‘‘(A) whose graduates exhibit strong per7 formance on State-determined qualifying assess8 ments for new teachers through— 

9 ‘‘(i) demonstrating that 80 percent or 

10 more of the graduates of the program who 

11 intend to enter the field of teaching have 

12 passed all of the applicable State qualifica13 tion assessments for new teachers, which 

14 shall include an assessment of each pro15 spective teacher’s subject matter knowledge 

16 in the content area in which the teacher in17 tends to teach; or 

18 ‘‘(ii) being ranked among the highest19 performing teacher preparation programs 

20 in the State as determined by the State 

21 using criteria consistent with the require22 ments for the State report card under sec23 tion 210; and 

24 ‘‘(B) that requires each teacher or school 

25 leader candidate in the program— 

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1 ‘‘(i) to meet high academic standards 

2 or demonstrate a record of success, as de3 termined by the institution (including prior 

4 to entering and being accepted into a pro5 gram), and participate in intensive clinical 

6 training; 

7 ‘‘(ii) to become highly effective; and 

8 ‘‘(iii) preparing to become an early 

9 childhood educator, to meet degree require10 ments, as established by the State, and be11 come highly competent. 

12 ‘‘(22) PRINCIPLES OF SCIENTIFIC RESEARCH.— 

13 The term ‘principles of scientific research’ means 

14 principles of research that— 

15 ‘‘(A) apply rigorous, systematic, and objec16 tive methodology to obtain reliable and valid 

17 knowledge relevant to education activities and 

18 programs; 

19 ‘‘(B) present findings and make claims 

20 that are appropriate to, and supported by, the 

21 methods that have been employed; and 

22 ‘‘(C) include, appropriate to the research 

23 being conducted— 

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1 ‘‘(i) use of systematic, empirical meth2 ods that draw on observation or experi3 ment; 

4 ‘‘(ii) use of data analyses that are 

5 adequate to support the general findings; 

6 ‘‘(iii) reliance on measurements or ob7 servational methods that provide reliable 

8 and generalizable findings; 

9 ‘‘(iv) strong claims of causal relation10 ships, only with research designs that 

11 eliminate plausible competing explanations 

12 for observed results, such as random-as13 signment experiments; 

14 ‘‘(v) presentation of studies and meth15 ods in sufficient detail and clarity to allow 

16 for replication or, at a minimum, to offer 

17 the opportunity to build systematically on 

18 the findings of the research; 

19 ‘‘(vi) acceptance by a peer-reviewed 

20 journal or critique by a panel of inde21 pendent experts through a comparably rig22 orous, objective, and scientific review; and 

23 ‘‘(vii) consistency of findings across 

24 multiple studies or sites to support the 

25 generality of results and conclusions. 

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1 ‘‘(23) RECENT PROGRAM GRADUATE.—The 

2 term ‘recent program graduate’ means— 

3 ‘‘(A) an individual who has graduated from 

4 a teacher preparation program or school leader 

5 preparation program not earlier than 3 years 

6 preceding the date of the determination; or 

7 ‘‘(B) an alternative route participant who, 

8 within the 3 years preceding the date of the de9 termination, received a level of certification or 

10 licensure that allows the participant to serve as 

11 the teacher or school leader of record in the 

12 State in which the participant is employed. 

13 ‘‘(24) SATISFACTION SURVEY.—The term ‘sat14 isfaction survey’ means a survey instrument de15 signed to collect qualitative and quantitative data on 

16 perceptions of whether new teachers or school lead17 ers possess the skills needed to succeed in the class18 room, including effective teaching or school leader19 ship skills. 

20 ‘‘(25) SCIENTIFICALLY VALID RESEARCH.—The 

21 term ‘scientifically valid research’ includes applied 

22 research, basic research, and field-initiated research 

23 in which the rationale, design, and interpretation are 

24 soundly developed in accordance with principles of 

25 scientific research. 

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1 ‘‘(26) SCHOOL LEADER.—The term ‘school 

2 leader’ means a principal, assistant principal, or in3 dividual who— 

4 ‘‘(A) is an employee or officer of a school 

5 who is responsible for— 

6 ‘‘(i) the daily instructional leadership 

7 and managerial operations of the school; 

8 and 

9 ‘‘(ii) creating the optimum conditions 

10 for student learning; or 

11 ‘‘(B) is an early childhood program leader 

12 or director. 

13 ‘‘(27) SCHOOL LEADER PREPARATION ENTI14 TY.—The term ‘school leader preparation entity’ 

15 means an institution of higher education or a non16 profit organization, including those institutions or 

17 organizations that provide alternative routes to cer18 tification, that is approved by the State to prepare 

19 school leaders to be effective. 

20 ‘‘(28) SCHOOL LEADER PREPARATION PRO21 GRAM.—The term ‘school leader preparation pro22 gram’ means a program offered by a school leader 

23 preparation entity, whether traditional or alternative 

24 route, that is approved by the State to prepare 

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1 school leaders to be effective and that leads to a spe2 cific State certification to be a school leader. 

3 ‘‘(29) SCHOOL LEADER RESIDENCY PRO4 GRAM.—The term ‘school leader residency program’ 

5 means a school-based school leader preparation pro6 gram in which a prospective school leader— 

7 ‘‘(A) for 1 academic year, acts as a school 

8 leader or assistant school leader alongside a 

9 mentor school leader; 

10 ‘‘(B) receives concurrent instruction during 

11 the year described in subparagraph (A) from an 

12 educator preparation entity, which courses may 

13 be taught by local educational agency personnel 

14 or residency program faculty; 

15 ‘‘(C) acquires and demonstrates effective 

16 school leadership skills; 

17 ‘‘(D) prior to completion of the program, 

18 attains full State certification of licensure; and 

19 ‘‘(E) in the case of a postbaccalaureate or 

20 master’s residency program, acquires a master’s 

21 degree not later than 24 months after begin22 ning the program. 

23 ‘‘(30) SCHOOL LEADERSHIP SKILLS.—The term 

24 ‘school leadership skills’ means skills that enable a 

25 school leader to— 

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1 ‘‘(A) recruit, train, supervise, support, re2 tain, and evaluate teachers and other staff; 

3 ‘‘(B) develop teams of effective school 

4 staff, and distributing among members of such 

5 teams responsibilities for leading and improving 

6 their schools; 

7 ‘‘(C) establish a positive school culture and 

8 learning community where school leaders and 

9 teachers— 

10 ‘‘(i) share a commitment to improving 

11 student outcomes and performances for all 

12 students, including students with disabil13 ities and English learners; and 

14 ‘‘(ii) set a continuous cycle of collec15 tive inquiry and improvement in which 

16 teachers and school leaders work together 

17 on a regular basis to analyze and improve 

18 the alignment and effectiveness of cur19 riculum, instruction, learning, and assess20 ment; 

21 ‘‘(D) understand how students learn and 

22 develop, and use this knowledge to set high ex23 pectations for student achievement and support 

24 student success; 

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1 ‘‘(E) address the unique needs of specific 

2 student populations served, such as students 

3 with disabilities, students who are English 

4 learners, and students who are homeless or in 

5 foster care; 

6 ‘‘(F) manage resources and school time to 

7 support high-quality instruction and improve8 ments in student achievement; and 

9 ‘‘(G) actively engage and work effectively 

10 with students’ parents and other members of 

11 the community. 

12 ‘‘(31) STUDENT GROWTH.—The term ‘student 

13 growth’ means a change in student achievement for 

14 an individual student between 2 or more points in 

15 time. For the purpose of determining student 

16 growth, measures of student achievement include— 

17 ‘‘(A) for grades and subjects in which as18 sessments are required under section 

19 1111(b)(3) of the Elementary and Secondary 

20 Education Act of 1965, the student’s score on 

21 such assessments, and, as appropriate, other 

22 multiple measures of student learning, such as 

23 those designated under paragraph (B); and 

24 ‘‘(B) for grades and subjects for which 

25 such assessments are not required, alternative 

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1 statewide measures of student learning and per2 formance, such as student results on pre-tests 

3 and end-of-course tests, and objective perform4 ance-based assessments, and student perform5 ance on English language proficiency assess6 ments. 

7 ‘‘(32) TEACHER IN A HIGH-NEED SUBJECT OR

8 FIELD.—The term ‘teacher in a high-need subject or 

9 field’ means a teacher of— 

10 ‘‘(A) students with disabilities; 

11 ‘‘(B) English learners; or 

12 ‘‘(C) science, technology, engineering, or 

13 mathematics. 

14 ‘‘(33) TEACHER PERFORMANCE ASSESSMENT.— 

15 The term ‘teacher performance assessment’ means 

16 an assessment used to measure teacher performance 

17 that is approved by the State and is— 

18 ‘‘(A) based on professional teaching stand19 ards; 

20 ‘‘(B) used to measure the effectiveness of 

21 a teacher’s— 

22 ‘‘(i) curriculum planning; 

23 ‘‘(ii) instruction of students, including 

24 appropriate plans and modifications for 

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1 students who are English learners and stu2 dents who are children with disabilities; 

3 ‘‘(iii) assessment of students, includ4 ing analysis of evidence of student learn5 ing; and 

6 ‘‘(iv) ability to advance student learn7 ing; 

8 ‘‘(C) validated based on professional as9 sessment standards; 

10 ‘‘(D) reliably scored by trained evaluators, 

11 with appropriate oversight of the process to en12 sure consistency; and 

13 ‘‘(E) used to support continuous improve14 ment of educator practice. 

15 ‘‘(34) TEACHER PREPARATION ENTITY.—The 

16 term ‘teacher preparation entity’ means an institu17 tion of higher education or a nonprofit organization, 

18 including those that provide alternative routes to 

19 certification, that is approved by the State to pre20 pare teachers to be effective. 

21 ‘‘(35) TEACHER PREPARATION PROGRAM.—The 

22 term ‘teacher preparation program’ means a pro23 gram, whether traditional or alternative route, that 

24 is approved by the State to prepare teachers to be 

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1 effective and that leads to a specific State certifi2 cation to be a teacher. 

3 ‘‘(36) TEACHER RESIDENCY PROGRAM.—The 

4 term ‘teacher residency program’ means a school5 based teacher preparation program in which a pro6 spective teacher— 

7 ‘‘(A) for 1 academic year, teaches along8 side a mentor teacher, who is the teacher of 

9 record; 

10 ‘‘(B) receives concurrent instruction during 

11 the year described in subparagraph (A) from an 

12 educator preparation entity, which courses may 

13 be taught by local educational agency personnel 

14 or residency program faculty, in the teaching of 

15 the content area in which the teacher will be16 come certified or licensed; 

17 ‘‘(C) acquires teaching skills; 

18 ‘‘(D) prior to completion of the program, 

19 attains full State certification of licensure and 

20 is prepared to be effective; and 

21 ‘‘(E) in the case of a postbaccalaureate or 

22 master’s residency program, acquires a master’s 

23 degree not later than 24 months after begin24 ning the program. 

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1 ‘‘(37) TEACHING SKILLS.—The term ‘teaching 

2 skills’ means skills that enable a teacher to— 

3 ‘‘(A) increase student learning, achieve4 ment, and the ability to apply knowledge; 

5 ‘‘(B) effectively convey and explain aca6 demic subject matter; 

7 ‘‘(C) effectively teach higher-order analyt8 ical, critical thinking, evaluation, problem-solv9 ing, and communication skills; 

10 ‘‘(D) employ strategies grounded in the 

11 disciplines of teaching and learning that— 

12 ‘‘(i) are based on empirically-based 

13 practice and scientifically valid research, 

14 where applicable, related to teaching and 

15 learning; 

16 ‘‘(ii) are specific to academic subject 

17 matter; 

18 ‘‘(iii) are culturally responsive; 

19 ‘‘(iv) integrate social and emotional 

20 development and academic achievement; 

21 and 

22 ‘‘(v) focus on the identification of stu23 dents’ specific learning needs and develop 

24 the skills needed to promote successful 

25 learning, particularly among students with 

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1 disabilities, English learners, students who 

2 are gifted and talented, and students with 

3 low literacy levels, and the tailoring of aca4 demic instruction to such needs; 

5 ‘‘(E) conduct and utilize the results of an 

6 ongoing assessment of student learning, which 

7 may include the use of formative assessments, 

8 interim assessments, performance-based assess9 ments, project-based assessments, or portfolio 

10 assessments, that measures the full range of 

11 academic standards and higher-order thinking 

12 skills (including application, analysis, synthesis, 

13 and evaluation); 

14 ‘‘(F) effectively manage a classroom, in15 cluding the ability to implement multi-tiered 

16 systems of support, create a positive learning 

17 environment that conveys high expectations for 

18 all students, and equitably implement school 

19 discipline policies; 

20 ‘‘(G) communicate and work with parents, 

21 and involve parents in their children’s edu22 cation; 

23 ‘‘(H) use, in the case of an early childhood 

24 educator, age-appropriate and developmentally 

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1 appropriate strategies and practices for children 

2 in early childhood education programs; and 

3 ‘‘(I) teach, in the case of a career and 

4 technical education teacher, technical skills to 

5 industry standards in a classroom setting and 

6 possess strategies for incorporating content 

7 from non-career and technical education courses 

8 and standards for college and career into career 

9 and technical education courses. 

10 ‘‘PART A—EDUCATOR QUALITY PARTNERSHIP 

11 GRANTS 

12 ‘‘SEC. 201. PURPOSES. 

13 ‘‘The purposes of this part are to— 

14 ‘‘(1) improve student achievement in high-need 

15 schools; 

16 ‘‘(2) improve the quality of prospective and new 

17 teachers or school leaders by improving the prepara18 tion of prospective teachers or school leaders and en19 hancing professional development activities for new 

20 teachers or school leaders; 

21 ‘‘(3) hold educator preparation entities at insti22 tutions of higher education accountable for pre23 paring highly effective teachers or school leaders; 

24 ‘‘(4) recruit well qualified individuals, including 

25 members of groups underrepresented in teaching 

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1 and individuals from other occupations, as teachers 

2 and school leaders; and 

3 ‘‘(5) meet the staffing needs of high-need local 

4 educational agencies and high-need schools through 

5 collaborative partnerships with educator preparation 

6 programs within institutions of higher education. 

7 ‘‘SEC. 202. GRANTS TO IMPROVE EDUCATOR PREPARATION 

8 AND SUPPORT EDUCATOR RESIDENCIES. 

9 ‘‘(a) PROGRAM AUTHORIZED.—From amounts made 

10 available under subsection (g), the Secretary is authorized 

11 to award grants, on a competitive basis, to eligible part12 nerships, to carry out the activities described in this sec13 tion. 

14 ‘‘(b) APPLICATION.—An eligible partnership that de15 sires to receive a grant under this section shall submit an 

16 application to the Secretary at such time, in such manner, 

17 and accompanied by such information as the Secretary 

18 may require, including at a minimum— 

19 ‘‘(1) a needs assessment of the partners in the 

20 eligible partnership with respect to the preparation, 

21 ongoing training, professional development, and re22 tention of general education and special education 

23 teachers, teachers of English as a second language, 

24 school leaders, and, as applicable, early childhood 

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1 educators and career and technical education teach2 ers, including— 

3 ‘‘(A) an assessment of the hiring needs of 

4 the high-need schools served by the high-need 

5 local educational agency in the eligible partner6 ship; and 

7 ‘‘(B) a projection of vacancies for teachers 

8 in a high-need subject or field, and the number 

9 of teachers needed in each such high-need sub10 ject or field or school leaders in high-need 

11 schools; 

12 ‘‘(2) an assurance that the eligible partnership 

13 will target grant funds provided under this section 

14 to recruit, prepare, and support highly effective edu15 cators to serve in high-need local educational agen16 cies and high-need schools, consistent with the needs 

17 assessment conducted under paragraph (1); 

18 ‘‘(3) an assurance that the eligible partnership 

19 will include meaningful collaboration, as described in 

20 subsection (c)(2)(A), between an educator prepara21 tion program and a high-need local educational 

22 agency, in order to ensure educator preparation pro23 grams are preparing educators with the teaching 

24 skills or leadership skills necessary to meet the needs 

25 of the high-need local educational agency; 

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1 ‘‘(4) an assurance that the educator prepara2 tion program will administer satisfaction surveys to 

3 employers and recent program graduates on an an4 nual basis, in order to ascertain employer satisfac5 tion with recent program graduates’ performance; 

6 ‘‘(5) a coherent strategy for using grant funds 

7 provided under this section with other Federal, 

8 State, and local funds to— 

9 ‘‘(A) increase student achievement in high10 need schools by improving the quality of prepa11 ration for new and prospective educators, and 

12 by enhancing professional development activities 

13 for new educators; and 

14 ‘‘(B) meet the needs of high-need local 

15 educational agencies and high-need schools by 

16 establishing meaningful partnerships with edu17 cator residency programs; 

18 ‘‘(6) a description of how the eligible partner19 ship will sustain the activities proposed in the appli20 cation after the grant period ends; 

21 ‘‘(7) a description of how the eligible partner22 ship will prepare all educators to— 

23 ‘‘(A) understand and use scientifically 

24 valid research, as well as data on their stu25 dents’ educational progress to modify and immstockstill on DSK4VPTVN1PROD with BILLS

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1 prove the implementation or supervision of 

2 classroom instruction; 

3 ‘‘(B) meet the needs of students with dis4 abilities, including training related to participa5 tion as a member of individualized education 

6 program teams, as defined in section 

7 614(d)(1)(B) of the Individuals with Disabil8 ities Education Act to ensure individualized 

9 education plans created promote student suc10 cess; and 

11 ‘‘(C) meet the needs of English learners; 

12 ‘‘(8) a description of— 

13 ‘‘(A) how the eligible partnership will co14 ordinate strategies and activities assisted under 

15 the grant with other educator preparation pro16 grams or professional development programs, 

17 including programs funded under the Elemen18 tary and Secondary Education Act of 1965 and 

19 the Individuals with Disabilities Education Act, 

20 and through the National Science Foundation; 

21 and 

22 ‘‘(B) how the activities of the eligible part23 nership will be consistent with State, local, and 

24 other education reform activities that promote 

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1 teacher and school leader effectiveness and stu2 dent academic achievement; 

3 ‘‘(9) a description of how the eligible partner4 ship will align the educator residency program car5 ried out with grant funds with the— 

6 ‘‘(A) State early learning standards for 

7 early childhood education programs, as appro8 priate, and with the relevant domains of early 

9 childhood development, such as social and emo10 tional development; 

11 ‘‘(B) challenging academic content stand12 ards and challenging student academic achieve13 ment standards under section 1111(b)(1) of the 

14 Elementary and Secondary Education Act of 

15 1965, established by the State in which the 

16 partnership is located; and 

17 ‘‘(C) hiring objectives of the high-need 

18 local educational agency in the partnership; 

19 ‘‘(10) a description of how faculty at the part20 ner institution will work, during the term of the 

21 grant, with highly effective educators in high-need 

22 schools served by the high-need local educational 

23 agency in the eligible partnership to— 

24 ‘‘(A) provide high-quality professional de25 velopment activities, including in-service profesmstockstill on DSK4VPTVN1PROD with BILLS

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1 sional development, to strengthen the content 

2 knowledge and teaching skills or leadership 

3 skills of elementary school and secondary school 

4 teachers or school leaders; 

5 ‘‘(B) for teachers, train classroom teachers 

6 to implement literacy programs that incorporate 

7 the essential components of literacy instruction; 

8 and 

9 ‘‘(C) as appropriate, provide training for 

10 educators to teach technical skills to industry 

11 standards in a classroom setting; 

12 ‘‘(11) a description of the partnership’s evalua13 tion plan under section 204(a), including how the 

14 partnership will collect, analyze, use, and report data 

15 annually on the retention and performance of recent 

16 program graduates as well as how the eligible part17 nership will conduct and publicly report the evalua18 tion required under section 204(a); and 

19 ‘‘(12) a description of how the eligible partner20 ship will design and implement an induction pro21 gram to support all new educators who are prepared 

22 by the educator preparation program in the partner23 ship and who serve in the high-need local edu24 cational agency in the partnership, and, to the ex25 tent practicable, all new educators who serve in such 

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1 high-need local educational agency, and how such an 

2 induction program will comply with the requirements 

3 under section 200(16) and be integrated with other 

4 ongoing efforts to support new educators by the 

5 high-need local educational agency. 

6 ‘‘(c) EDUCATOR RESIDENCY PROGRAMS.— 

7 ‘‘(1) IN GENERAL.—An eligible partnership that 

8 receives a grant under this section shall use the 

9 grant funds to design and implement an effective ed10 ucator residency program that is grounded in sci11 entifically valid research to prepare educators for 

12 success in the high-need schools served by the high13 need local educational agency. 

14 ‘‘(2) CONTENT OF PROGRAM.—An educator 

15 residency program implemented under paragraph (1) 

16 shall include the following: 

17 ‘‘(A) MEANINGFUL COLLABORATION.—Es18 tablish meaningful collaboration between the 

19 partner institution and the high-need local edu20 cational agency to ensure the partner institu21 tion is preparing teachers with the teaching 

22 skills or school leaders with the leadership skills 

23 necessary to meet the specific needs of the high24 need local educational agency by requiring the 

25 partner institution to— 

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1 ‘‘(i) engage in regular consultation 

2 with the high-need local educational agency 

3 throughout the development and implemen4 tation of programs and activities carried 

5 out under this section and provide evidence 

6 that such programs and activities are 

7 aligned with the needs of the high-need 

8 schools served by such high-need local edu9 cational agency; 

10 ‘‘(ii) incorporate ongoing feedback and 

11 regular communication from the high-need 

12 local educational agency and the high-need 

13 schools served by such high-need local edu14 cational agency, in— 

15 ‘‘(I) the development of recruit16 ment and admissions goals and prior17 ities; 

18 ‘‘(II) the design of the educator 

19 residency program’s curriculum, 

20 coursework content, clinical training, 

21 induction programs, and other profes22 sional development activities, includ23 ing opportunities to collaborate with 

24 specialized instructional support per25 sonnel; 

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1 ‘‘(III) continuing efforts to mod2 ify and improve the activities and pro3 grams carried out by the partner in4 stitution; and 

5 ‘‘(IV) meeting the needs of the 

6 high-need schools in which recent pro7 gram graduates are employed and by 

8 monitoring the performance of such 

9 graduates; and 

10 ‘‘(iii) administer satisfaction surveys 

11 and utilize the feedback from such surveys 

12 to drive program improvement. 

13 ‘‘(B) INDUCTION PROGRAMS FOR NEW

14 EDUCATORS.—Implement an induction pro15 gram, as described in section 200(16) for new 

16 educators or, in the case of an early childhood 

17 education program, providing mentoring or 

18 coaching for new early childhood educators. 

19 Such induction program shall be integrated 

20 with other ongoing efforts to support new edu21 cators by the high-need local educational agen22 cy. 

23 ‘‘(C) EDUCATOR RECRUITMENT.—Develop 

24 and implement effective mechanisms (which 

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1 cation of teachers or school leaders) to ensure 

2 that the eligible partnership is able to recruit 

3 well qualified individuals with a record of aca4 demic, volunteer, or leadership distinction to be5 come effective educators, which shall include— 

6 ‘‘(i) the development of recruitment 

7 and admissions goals and priorities aligned 

8 with the hiring objectives identified under 

9 subsection (a)(1); and 

10 ‘‘(ii) an emphasis on recruiting— 

11 ‘‘(I) individuals from under rep12 resented populations; 

13 ‘‘(II) individuals to— 

14 ‘‘(aa) become teachers in 

15 high-need subject or fields and to 

16 teach in schools in rural areas; or 

17 ‘‘(bb) become school leaders 

18 in schools in rural areas or high19 need local educational agencies; 

20 ‘‘(III) mid-career professionals 

21 from other occupations, former mili22 tary personnel, and recent college 

23 graduates; and 

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1 ‘‘(IV) for school leaders, individ2 uals with teaching experience and 

3 demonstrated leadership competencies. 

4 ‘‘(D) SUPPORT AND TRAINING FOR PAR5 TICIPANTS IN EARLY CHILDHOOD EDUCATION

6 PROGRAMS.—In the case of an eligible partner7 ship focusing on early childhood educator prep8 aration, implement initiatives that increase 

9 compensation for early childhood educators who 

10 attain associate or baccalaureate degrees in 

11 early childhood education. 

12 ‘‘(E) RECENT PROGRAM GRADUATE PER13 FORMANCE.—Increase capacity and collect and 

14 analyze data on the performance of recent pro15 gram graduates of educator residency pro16 grams, including data on— 

17 ‘‘(i) results from statewide teacher or 

18 school leader evaluation systems; 

19 ‘‘(ii) recent program graduate reten20 tion rates in full-time positions; 

21 ‘‘(iii) satisfaction survey outcomes; 

22 and 

23 ‘‘(iv) to the extent practicable, surveys 

24 of parents on how well the teacher or 

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1 school leader engages parents in student 

2 learning activities. 

3 ‘‘(F) COMPREHENSIVE LITERACY INSTRUC4 TION.—Strengthen comprehensive literacy in5 struction, that— 

6 ‘‘(i) incorporates effective literacy in7 struction; and 

8 ‘‘(ii) is designed to support— 

9 ‘‘(I) developmentally appropriate, 

10 contextually explicit, systematic in11 struction, and frequent practice, in 

12 reading across content areas; and 

13 ‘‘(II) developmentally appropriate 

14 and contextually explicit instruction, 

15 and frequent practice, in writing 

16 across content areas. 

17 ‘‘(3) TEACHER RESIDENCY PROGRAMS.—In ad18 dition to the requirements under paragraph (2), an 

19 eligible partnership receiving a grant under this sec20 tion to design and implement an effective teacher 

21 residency program, shall include the following re22 quirements: 

23 ‘‘(A) REFORMS.—Implementing reforms, 

24 including— 

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1 ‘‘(i) curriculum changes that are 

2 aligned with the needs of the high-need 

3 local educational agency in the eligible 

4 partnership, in order to improve, evaluate, 

5 and assess how well all prospective and 

6 new teachers develop teaching skills; 

7 ‘‘(ii) using empirically-based practice 

8 and scientifically valid research, where ap9 plicable, about teaching and learning so 

10 that all prospective teachers and, as appli11 cable, early childhood educators— 

12 ‘‘(I) are prepared to be highly ef13 fective teachers and, as applicable, 

14 highly competent early childhood edu15 cators; 

16 ‘‘(II) understand and can imple17 ment research-based teaching prac18 tices in classroom instruction; 

19 ‘‘(III) possess strong teaching 

20 skills and an understanding of effec21 tive instructional strategies across all 

22 applicable content areas that enable 

23 all teachers to— 

24 ‘‘(aa) meet the specific 

25 learning needs of all students, inmstockstill on DSK4VPTVN1PROD with BILLS

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1 cluding students with disabilities, 

2 English learners, students who 

3 are gifted and talented, students 

4 with low literacy levels and, as 

5 applicable, children in early child6 hood education programs; 

7 ‘‘(bb) differentiate instruc8 tion for such students; 

9 ‘‘(cc) have knowledge of stu10 dent learning styles; 

11 ‘‘(dd) analyze the results of 

12 student learning and other data 

13 to improve instruction; 

14 ‘‘(ee) effectively participate 

15 as a member of the individualized 

16 education program team, as de17 fined in section 614(d)(1)(B) of 

18 the Individuals with Disabilities 

19 Education Act in order to ensure 

20 individualized education plans 

21 promote student success; 

22 ‘‘(ff) if applicable, success23 fully employ effective strategies 

24 for comprehensive literacy in25 struction; and 

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1 ‘‘(gg) employ techniques to 

2 improve children’s cognitive, so3 cial, emotional, and physical de4 velopment; 

5 ‘‘(IV) if applicable, receive train6 ing on effective teaching in rural or 

7 diverse communities and on teaching 

8 students with disabilities and English 

9 learners; and 

10 ‘‘(V) can effectively teach stu11 dents with disabilities; and 

12 ‘‘(iii) administering satisfaction sur13 veys to employers of recent program grad14 uates and to recent program graduates. 

15 ‘‘(B) CLINICAL TRAINING.—Implementing 

16 at least 1 academic year of preservice high17 quality clinical training in high-need schools 

18 that includes the following criteria: 

19 ‘‘(i) Integration of pedagogy, robust 

20 classroom practice, and mentoring to pro21 mote effective teaching skills. 

22 ‘‘(ii) Engagement of teacher residents 

23 in rigorous coursework, which shall be 

24 aligned to the needs of the high-need local 

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1 educational agency in the eligible partner2 ship. 

3 ‘‘(iii) Establishment of clear criteria 

4 for the selection and assignment of mentor 

5 teachers. 

6 ‘‘(iv) Placement of teacher residents 

7 in cohorts that facilitate professional col8 laboration, both among teacher residents 

9 and between such teacher residents and 

10 mentors in the receiving school. 

11 ‘‘(v) Support for teacher residents, 

12 once the teacher residents are hired as 

13 teachers of record, through an induction 

14 program, high-quality professional develop15 ment, and regular opportunities to support 

16 the residents in their development of teach17 ing skills during not less than the resi18 dents’ first 2 years of teaching. 

19 ‘‘(C) SELECTION OF INDIVIDUALS AS

20 TEACHER RESIDENTS.— 

21 ‘‘(i) ELIGIBLE INDIVIDUAL.—In order 

22 to be eligible to be a teacher resident in a 

23 teacher residency program under this para24 graph, an individual shall— 

25 ‘‘(I) be— 

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1 ‘‘(aa) a graduate of a 4-year 

2 institution of higher education; or 

3 ‘‘(bb) in the third or fourth 

4 year of undergraduate bacca5 laureate education being pursued 

6 by the teacher candidate; and 

7 ‘‘(II) submit an application to 

8 the teacher residency program. 

9 ‘‘(ii) SELECTION CRITERIA.—An eligi10 ble partnership carrying out a teacher resi11 dency program under this subsection shall 

12 establish criteria for the selection of eligi13 ble individuals to participate in the teacher 

14 residency program, aligned to the hiring 

15 needs and objectives of the high-need local 

16 educational agency in the eligible partner17 ship, and based on, at a minimum, the fol18 lowing applicant characteristics: 

19 ‘‘(I) Strong content knowledge or 

20 record of accomplishment in the field 

21 or subject area to be taught. 

22 ‘‘(II) Strong verbal and written 

23 communication skills. 

24 ‘‘(III) Other attributes linked to 

25 effective teaching, which may be demstockstill on DSK4VPTVN1PROD with BILLS

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1 termined by interviews or performance 

2 assessments, as specified by the eligi3 ble partnership. 

4 ‘‘(IV) Demonstrated commit5 ment, which could be evidenced by 

6 past work experience, to serving in 

7 high-need local educational agencies. 

8 ‘‘(V) Demonstrated leadership in 

9 past education or work experiences. 

10 ‘‘(4) SCHOOL LEADER RESIDENCY PRO11 GRAMS.—In addition to the requirements under 

12 paragraph (2), an eligible partnership receiving a 

13 grant under this section to design and implement an 

14 effective school leader residency program, shall in15 clude the following requirements: 

16 ‘‘(A) REFORMS.—Implementing reforms, 

17 including the following: 

18 ‘‘(i) Preparing prospective school lead19 ers for careers as principals, assistant 

20 principals, early childhood education pro21 gram directors, or other school leaders (in22 cluding individuals preparing to work in 

23 high-need local educational agencies lo24 cated in rural areas who may perform mulmstockstill on DSK4VPTVN1PROD with BILLS

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1 tiple duties in addition to the role of a 

2 school leader). 

3 ‘‘(ii) Promoting strong leadership 

4 skills and, as applicable, techniques for 

5 school leaders to effectively— 

6 ‘‘(I) develop a shared vision for 

7 high achievement and college- and ca8 reer-readiness for all students; 

9 ‘‘(II) support teachers in imple10 menting rigorous curricula and assess11 ments tied to State challenging aca12 demic content standards and chal13 lenging student academic achievement 

14 standards adopted pursuant to section 

15 1111(b) of the Elementary and Sec16 ondary Education Act of 1965; 

17 ‘‘(III) create and maintain a 

18 data-driven, professional learning 

19 community within the school leader’s 

20 school and understand the teaching 

21 skills needed to support successful 

22 classroom instruction and to use data 

23 to evaluate teacher instruction and 

24 drive teacher and student learning; 

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1 ‘‘(IV) recruit, hire, assign, and 

2 retain effective teachers and complete 

3 high-quality evaluations of instruc4 tional staff for continuous improve5 ment; 

6 ‘‘(V) provide a climate conducive 

7 to the professional development of 

8 teachers, with a focus on improving 

9 student academic achievement and the 

10 development of effective instructional 

11 leadership skills; 

12 ‘‘(VI) manage resources and 

13 school time to improve student aca14 demic achievement, and to ensure the 

15 school environment is safe; 

16 ‘‘(VII) engage and involve fami17 lies, community members, the local 

18 educational agency, businesses, and 

19 other community leaders, to respond 

20 to the diverse interests and needs and 

21 leverage additional resources to im22 prove student academic achievement; 

23 ‘‘(VIII) understand how students 

24 learn and develop in order to increase 

25 academic achievement for all students, 

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1 including students with disabilities 

2 and English learners; and 

3 ‘‘(IX) understand the varied roles 

4 and responsibilities of general and 

5 special educators and teachers of 

6 English as a second language to sup7 port meaningful observation, feedback, 

8 and evaluations. 

9 ‘‘(B) CLINICAL TRAINING.—Implementing 

10 at least 1 academic year of high-quality clinical 

11 training in high-need schools that includes the 

12 following criteria: 

13 ‘‘(i) Integration of coursework, robust 

14 school-based practice, and mentoring, to 

15 promote effective leadership skills. 

16 ‘‘(ii) Engagement of school leader 

17 residents in rigorous coursework, which 

18 shall be aligned to the needs of the high19 need local educational agency in the eligi20 ble partnership. 

21 ‘‘(iii) Establishment of clear criteria 

22 for the selection and assignment of mentor 

23 school leaders. 

24 ‘‘(iv) Placement of school leader resi25 dents in cohorts that facilitate professional 

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1 collaboration, both among school leader 

2 residents and between such school leader 

3 residents and mentors in the receiving 

4 school. 

5 ‘‘(v) Support for school leader resi6 dents once such school leader residents are 

7 hired as school leaders, through an induc8 tion program, high-quality professional de9 velopment, and regular opportunities, to 

10 support residents in their development of 

11 leadership skills during not less than the 

12 residents’ first 2 years of serving as a 

13 school leader. 

14 ‘‘(C) SELECTION OF INDIVIDUALS AS

15 SCHOOL LEADER RESIDENTS.— 

16 ‘‘(i) ELIGIBLE INDIVIDUAL.—In order 

17 to be eligible to be a school leader resident 

18 in a school leader residency program under 

19 this paragraph, an individual shall— 

20 ‘‘(I) be a graduate of a 4-year in21 stitution of higher education; 

22 ‘‘(II) have prior prekindergarten 

23 through grade 12 teaching experience; 

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1 ‘‘(III) have experience as an ef2 fective leader, manager, and commu3 nicator; and 

4 ‘‘(IV) submit an application to 

5 the residency program. 

6 ‘‘(ii) SELECTION CRITERIA.—An eligi7 ble partnership carrying out a school lead8 er residency program under this subsection 

9 shall establish criteria for the selection of 

10 eligible individuals to participate in the 

11 school leader residency program, aligned to 

12 the hiring needs and objectives of the high13 need local educational agency in the eligi14 ble partnership, and based on, at a min15 imum, the following applicant characteris16 tics: 

17 ‘‘(I) Demonstrated leadership 

18 skills in an elementary school or sec19 ondary school setting. 

20 ‘‘(II) Strong record of accom21 plishment in prior prekindergarten 

22 through grade 12 teaching experience. 

23 ‘‘(III) Strong verbal and written 

24 communication skills. 

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1 ‘‘(IV) Other attributes linked to 

2 effective leadership. 

3 ‘‘(V) Demonstrated commitment, 

4 which may be evidenced by past work 

5 experience, to serving in high-need 

6 local educational agencies. 

7 ‘‘(5) STIPENDS OR SALARIES; APPLICATIONS; 

8 AGREEMENTS; REPAYMENTS.— 

9 ‘‘(A) STIPENDS OR SALARIES.—A teacher 

10 residency program or school leader residency 

11 program funded under this subsection shall pro12 vide a 1-year living stipend or salary to each 

13 teacher or school leader resident during the 

14 residency program. 

15 ‘‘(B) APPLICATIONS FOR STIPENDS OR

16 SALARIES.—Each teacher or school leader resi17 dency candidate desiring a stipend or salary 

18 during the period of residency shall submit an 

19 application to the eligible partnership at such 

20 time, and containing such information and as21 surances, as the eligible partnership may re22 quire. 

23 ‘‘(C) AGREEMENTS TO SERVE.—Each ap24 plication submitted under subparagraph (B) 

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1 shall contain or be accompanied by an agree2 ment that the applicant will— 

3 ‘‘(i) serve as a full-time teacher or 

4 school leader for a total of not less than 3 

5 academic years immediately after success6 fully completing the teacher residency pro7 gram or school leader residency program; 

8 ‘‘(ii) fulfill the requirement under sub9 clause (i)— 

10 ‘‘(I) by serving as a teacher in a 

11 high-need subject or field in a high12 need school served by the high-need 

13 local educational agency in the eligible 

14 partnership or serving as a school 

15 leader in such a school; or 

16 ‘‘(II) if there is no appropriate 

17 position available in a high-need 

18 school served by the high-need local 

19 educational agency in the eligible 

20 partnership, by serving as a teacher in 

21 a high-need subject or field in a high22 need school in another high-need local 

23 educational agency or serving as a 

24 school leader in such a school; 

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1 ‘‘(iii) provide to the eligible partner2 ship a certificate, from the chief adminis3 trative officer of the local educational 

4 agency in which the resident is employed, 

5 of the employment required in clauses (i) 

6 and (ii) at the beginning of, and upon com7 pletion of, each year or partial year of 

8 service; 

9 ‘‘(iv) for teachers, meet the require10 ments to be a highly qualified teacher, as 

11 defined in section 9101 of the Elementary 

12 and Secondary Education Act of 1965, or 

13 section 602 of the Individuals with Disabil14 ities Education Act, when the applicant be15 gins to fulfill the service obligation under 

16 this subparagraph; and 

17 ‘‘(v) comply with the requirements set 

18 by the eligible partnership under subpara19 graph (D) if the applicant is unable or un20 willing to complete the service obligation 

21 required under this subparagraph. 

22 ‘‘(D) REPAYMENTS.— 

23 ‘‘(i) IN GENERAL.—An eligible part24 nership receiving a grant under this sec25 tion to design and implement an effective 

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1 educator residency program shall require a 

2 recipient of a stipend or salary under sub3 paragraph (A) who does not complete, or 

4 who notifies the eligible partnership that 

5 the recipient intends not to complete, the 

6 service obligation required under subpara7 graph (C) to repay such stipend or salary 

8 to the eligible partnership, together with 

9 interest, at a rate specified by the eligible 

10 partnership in the agreement, and in ac11 cordance with such other terms and condi12 tions specified by the eligible partnership, 

13 as necessary. 

14 ‘‘(ii) OTHER TERMS AND CONDI15 TIONS.—Any other terms and conditions 

16 specified by the eligible partnership may 

17 include reasonable provisions for pro-rata 

18 repayment of the stipend or salary de19 scribed in subparagraph (A) or for deferral 

20 of a teacher or school leader resident’s 

21 service obligation required by subpara22 graph (C) on grounds of health, incapaci23 tation, inability to secure employment in a 

24 school served by the eligible partnership, 

25 being called to active duty in the Armed 

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1 Forces of the United States, or other ex2 traordinary circumstances. 

3 ‘‘(iii) USE OF REPAYMENTS.—An eli4 gible partnership shall use any repayment 

5 received under this subparagraph to carry 

6 out additional activities that are consistent 

7 with the purposes of this subsection. 

8 ‘‘(d) CONSULTATION.— 

9 ‘‘(1) IN GENERAL.—In addition to the require10 ments identified in subsection (b)(2)(A), members of 

11 an eligible partnership that receives a grant under 

12 this section shall engage in regular consultation 

13 throughout the development and implementation of 

14 programs and activities carried out under this sec15 tion. 

16 ‘‘(2) REGULAR COMMUNICATION.—To ensure 

17 timely and meaningful consultation as described in 

18 paragraph (1), regular communication shall occur 

19 among all members of the eligible partnership, in20 cluding the high-need local educational agency. Such 

21 communication shall continue throughout the imple22 mentation of the grant and the assessment of pro23 grams and activities under this section. 

24 ‘‘(3) WRITTEN CONSENT.—The Secretary may 

25 approve changes in grant activities of a grant under 

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1 this section only if the eligible partnership submits 

2 to the Secretary a written consent to such changes 

3 signed by all members of the eligible partnership. 

4 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

5 be construed to prohibit an eligible partnership from using 

6 grant funds to coordinate with the activities of eligible 

7 partnerships in other States or on a regional basis through 

8 Governors, State boards of education, State educational 

9 agencies, State agencies responsible for early childhood 

10 education, local educational agencies, or State agencies for 

11 higher education. 

12 ‘‘(f) SUPPLEMENT, NOT SUPPLANT.—Funds made 

13 available under this section shall be used to supplement, 

14 and not supplant, other Federal, State, and local funds 

15 that would otherwise be expended to carry out activities 

16 under this section. 

17 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated to carry out this section 

19 such sums as may be necessary for fiscal year 2015 and 

20 each of the 5 succeeding fiscal years. 

21 ‘‘SEC. 203. ADMINISTRATIVE PROVISIONS OF EDUCATOR 

22 RESIDENCY GRANTS. 

23 ‘‘(a) DURATION; NUMBER OF AWARDS; PAY24 MENTS.— 

25 ‘‘(1) DURATION.— 

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1 ‘‘(A) IN GENERAL.—A grant awarded 

2 under this part shall be not more than 5 years 

3 in duration. 

4 ‘‘(B) REQUIREMENTS FOR ADDITIONAL

5 FUNDING.—Before receiving funding for the 

6 third or any subsequent year of a grant under 

7 this part, the eligible partnership receiving the 

8 grant shall demonstrate to the Secretary that 

9 the eligible partnership is— 

10 ‘‘(i) making progress in implementing 

11 the requirements under section 202(c) at a 

12 rate that the Secretary determines will re13 sult in full implementation of the program 

14 during the remainder of the grant period; 

15 and 

16 ‘‘(ii) making progress, as measured by 

17 the performance objectives established by 

18 the eligible partnership under section 

19 204(a), at a rate that the Secretary deter20 mines will result in reaching the targets 

21 and achieving the objectives of the grant, 

22 during the remainder of the grant period. 

23 ‘‘(2) NUMBER OF AWARDS.—An eligible part24 nership may not receive more than 1 grant during 

25 a 5-year period. Nothing in this part shall be conmstockstill on DSK4VPTVN1PROD with BILLS

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1 strued to prohibit an individual member, that can 

2 demonstrate need, of an eligible partnership that re3 ceives a grant under this part from entering into an4 other eligible partnership consisting of new members 

5 and receiving a grant with such other eligible part6 nership before the 5-year period applicable to the eli7 gible partnership with which the individual member 

8 has first partnered has expired. 

9 ‘‘(b) PEER REVIEW.— 

10 ‘‘(1) PANEL.—The Secretary shall provide the 

11 applications submitted under this part to a peer re12 view panel for evaluation. With respect to each ap13 plication, the peer review panel shall initially rec14 ommend the application for funding or for dis15 approval. 

16 ‘‘(2) PRIORITY.—The Secretary, in funding ap17 plications under this part, shall give priority— 

18 ‘‘(A) to eligible partnerships that include a 

19 high-need local educational agency that serves a 

20 student population that consists of 40 percent 

21 or more students from low-income families; 

22 ‘‘(B) to eligible partnerships that include 

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1 tion process to ensure the highest quality of 

2 students entering such program; 

3 ‘‘(C) to applications from broad-based eli4 gible partnerships that involve businesses and 

5 nonprofit community organizations; or 

6 ‘‘(D) to eligible partnerships so that the 

7 awards promote an equitable geographic dis8 tribution of grants among rural and urban 

9 areas. 

10 ‘‘(3) SECRETARIAL SELECTION.—The Secretary 

11 shall determine, based on the peer review process, 

12 which applications shall receive funding and the 

13 amounts of the grants under this part. In deter14 mining grant amounts, the Secretary shall take into 

15 account the total amount of funds available for all 

16 grants under this part and the types of activities 

17 proposed to be carried out by the eligible partner18 ship. 

19 ‘‘(c) MATCHING REQUIREMENTS.— 

20 ‘‘(1) IN GENERAL.—Each eligible partnership 

21 receiving a grant under this part shall provide, from 

22 non-Federal sources, an amount equal to 100 per23 cent of the amount of the grant, which may be pro24 vided in cash or in-kind, to carry out the activities 

25 supported by the grant. 

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1 ‘‘(2) WAIVER.—The Secretary may waive all or 

2 part of the matching requirement described in para3 graph (1) for any fiscal year for an eligible partner4 ship if the Secretary determines that applying the 

5 matching requirement to the eligible partnership 

6 would result in serious hardship or an inability to 

7 carry out the authorized activities described in this 

8 part. 

9 ‘‘(d) LIMITATION ON ADMINISTRATIVE EXPENSES.— 

10 An eligible partnership that receives a grant under this 

11 part may use not more than 4 percent of the funds pro12 vided to administer the grant. 

13 ‘‘SEC. 204. PERFORMANCE MEASURES AND EVALUATION OF 

14 EDUCATOR RESIDENCY GRANTS. 

15 ‘‘(a) ELIGIBLE PARTNERSHIP EVALUATION.—Each 

16 eligible partnership submitting an application for a grant 

17 under this part shall establish, and include in such appli18 cation, a plan for evaluating the grant project using sci19 entifically valid research that includes strong and measur20 able performance objectives. The plan shall include, at a 

21 minimum, objectives and measures for determining the eli22 gible partnership’s success in increasing— 

23 ‘‘(1) each teacher candidate or school leader 

24 candidate’s performance during their clinical trainmstockstill on DSK4VPTVN1PROD with BILLS

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1 ing under paragraphs (3)(B) and (4)(B) of section 

2 202(c); 

3 ‘‘(2) educator retention in high-need schools— 

4 ‘‘(A) 3 years after initial placement as a 

5 teacher or school leader; and 

6 ‘‘(B) 5 years after initial placement as a 

7 teacher or school leader; 

8 ‘‘(3) the pass rates and scaled scores for first 

9 time test takers on the State certification or licens10 ing examination; 

11 ‘‘(4) educator effectiveness, as measured by— 

12 ‘‘(A) performance on teacher or school 

13 leader evaluations, including impact on student 

14 growth; and 

15 ‘‘(B) satisfaction survey outcomes; and 

16 ‘‘(5) the percentage of— 

17 ‘‘(A) recent program graduates hired by 

18 the high-need local educational agency who are 

19 rated effective under a State or district evalua20 tion system 2 years after program completion; 

21 ‘‘(B) recent program graduates hired by 

22 the high-need local educational agency who are 

23 rated effective under a State or district evalua24 tion system 2 years after program completion 

25 and are members of underrepresented groups; 

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1 ‘‘(C) recent program graduates hired by 

2 the high-need local educational agency who are 

3 rated effective under a State or district evalua4 tion system 2 years after program completion 

5 and who teach in high-need subject areas or 

6 fields; 

7 ‘‘(D) recent program graduates hired by 

8 the high-need local educational agency who are 

9 rated effective under a State or district evalua10 tion system 2 years after program completion 

11 and who serve in high-need schools or schools 

12 in rural areas, disaggregated by the elementary 

13 school and secondary school levels; and 

14 ‘‘(E) early childhood education program 

15 classes in the geographic area served by the eli16 gible partnership taught by early childhood edu17 cators who are highly competent, as applicable. 

18 ‘‘(b) ANNUAL REPORT.—Each eligible partnership 

19 that receives a grant under this part shall submit to the 

20 Secretary and make publicly available, at such time and 

21 in such manner as the Secretary may require, an annual 

22 report including at a minimum— 

23 ‘‘(1) data on the eligible partnership’s progress 

24 on the measures described in subsection (a); and 

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1 ‘‘(2) a description of the challenges the eligible 

2 partnership has faced in implementing its grant and 

3 how the eligible partnership has addressed or plans 

4 to address such challenges. 

5 ‘‘(c) INFORMATION.—An eligible partnership receiv6 ing a grant under this part shall ensure that candidates 

7 for admission to educator preparation programs, teachers, 

8 school leaders, school superintendents, faculty, and leader9 ship at institutions of higher education located in the geo10 graphic areas served by the eligible partnership are pro11 vided information, including through electronic means, 

12 about the activities carried out with funds under this part. 

13 ‘‘(d) REVISED APPLICATION.—If the Secretary deter14 mines that an eligible partnership receiving a grant under 

15 this part is not making substantial progress in meeting 

16 the purposes, goals, objectives, and measures of the grant, 

17 as appropriate, by the end of the third year of a grant 

18 under this part, then the Secretary— 

19 ‘‘(1) shall cancel the grant; and 

20 ‘‘(2) may use any funds returned or available 

21 because of such cancellation under paragraph (1) 

22 to— 

23 ‘‘(A) increase other grant awards under 

24 this part; or 

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1 ‘‘(B) award new grants to other eligible 

2 partnerships under this part. 

3 ‘‘(e) TECHNICAL ASSISTANCE, EVALUATION, AND

4 DISSEMINATION.—The Secretary shall reserve not more 

5 than 2 percent of the funds appropriated under section 

6 202(g) for a fiscal year— 

7 ‘‘(1) to provide, directly or through grants, con8 tracts, or cooperative agreements, technical assist9 ance by qualified experts on using practices ground10 ed in scientifically valid research to improve the out11 comes of projects funded under this part; 

12 ‘‘(2) acting through the Director of the Insti13 tute for Education Sciences, to— 

14 ‘‘(A) develop performance measures, in15 cluding the measures described in subsection 

16 (a) and evaluate the activities funded under sec17 tion 202 by these performance measures by ap18 plying the same measures to each project fund19 ed under section 202; 

20 ‘‘(B) report the findings of the evaluation 

21 to the authorizing committees and make pub22 licly available on the website of the Department; 

23 and 

24 ‘‘(C) identify best practices and dissemi25 nate research on best practices that scientifmstockstill on DSK4VPTVN1PROD with BILLS

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1 ically valid research indicates are the most suc2 cessful in improving the quality of educator 

3 preparation programs, including through re4 gional educational laboratories and comprehen5 sive centers (as authorized under the Education 

6 Sciences Reform Act of 2002). 

7 ‘‘(f) EVALUATION TO BE MADE PUBLICLY AVAIL8 ABLE.—Each eligible partnership receiving a grant under 

9 this part shall complete and make publicly available, not 

10 later than 90 days after the grant period for such eligible 

11 partnership ends, an evaluation based on the evaluation 

12 plan described under subsection (a). 

13 ‘‘(g) DEVELOPMENT OF PERFORMANCE MEAS14 URES.—The Secretary shall develop performance meas15 ures described in subsection (e) prior to awarding grants 

16 under this part. The Secretary shall ensure that such 

17 measures are made available to potential applicants prior 

18 to seeking applications for grants under this part. 

19 ‘‘PART B—STATE INNOVATION IN EDUCATOR 

20 PREPARATION 

21 ‘‘SEC. 206. EDUCATOR PREPARATION PROGRAM REFORM 

22 GRANTS. 

23 ‘‘(a) DEFINITIONS.—In this section: 

24 ‘‘(1) EDUCATOR PREPARATION PROGRAM AC25 COUNTABILITY AND IMPROVEMENT SYSTEM.—The 

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1 term ‘Educator Preparation Program Accountability 

2 and Improvement System’ means a system that as3 sesses all educator preparation programs within a 

4 State, establishes performance levels for educator 

5 preparation programs, and informs the interventions 

6 for low-performing educator preparation programs. 

7 The minimum requirements for such a system shall 

8 include— 

9 ‘‘(A) defining at least 4 performance levels 

10 that differentiate the performance of educator 

11 preparation programs based on data required in 

12 subparagraph (D); 

13 ‘‘(B) administering satisfaction surveys to 

14 employers of recent program graduates; 

15 ‘‘(C) administering satisfaction surveys to 

16 recent program graduates; 

17 ‘‘(D) assessing all such educator prepara18 tion programs on multiple measures that, at a 

19 minimum, shall include— 

20 ‘‘(i) for teacher preparation pro21 grams— 

22 ‘‘(I) a statewide measure of 

23 teacher impact on student learning for 

24 recent program graduates who are 

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1 employed as full-time teachers as 

2 demonstrated through either— 

3 ‘‘(aa) the percentage of re4 cent program graduates in each 

5 evaluation rating category for 

6 States that have statewide teach7 er evaluation systems if such 

8 evaluation systems contain the 

9 impact on student achievement, 

10 multiple measures, and more 

11 than 2 rating categories; or 

12 ‘‘(bb) for States that do not 

13 have a statewide teacher evalua14 tion system meeting the require15 ments in item (aa), the percent16 age of recent program graduates 

17 who demonstrate evidence of im18 proved student growth that is 

19 limited to evidence-based or ex20 ternally-validated measures; 

21 ‘‘(II) the number and percentage 

22 of recent program graduates employed 

23 as full time teachers who are identi24 fied as well-prepared by their employmstockstill on DSK4VPTVN1PROD with BILLS

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1 ers in the surveys described in sub2 paragraph (B); 

3 ‘‘(III) the number and percent4 age of recent graduates employed as 

5 full-time teachers who identify them6 selves as being well-prepared in sur7 veys described in subparagraph (C); 

8 ‘‘(IV) the number and percentage 

9 of teachers who graduated from teach10 er preparation programs and who are 

11 still teaching in full-time positions 3 

12 years and 5 years after initial place13 ment as a teacher; and 

14 ‘‘(V) the number and percentage 

15 of teachers who graduated from the 

16 educator preparation program in the 

17 most recent academic year who are 

18 teaching in full-time positions; 

19 ‘‘(ii) for school leader preparation pro20 grams— 

21 ‘‘(I) a statewide measure of 

22 school leader impact on student learn23 ing for recent program graduates who 

24 are employed as full-time school lead25 ers as demonstrated through either— 

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1 ‘‘(aa) the percentage of re2 cent program graduates in each 

3 evaluation rating category for 

4 States that have statewide school 

5 leader evaluation systems that in6 clude the impact on student 

7 achievement, multiple measures, 

8 and more than 2 rating cat9 egories; or 

10 ‘‘(bb) for States that do not 

11 have school leader evaluation sys12 tems that meet the requirements 

13 of item (aa), the percentage of 

14 recent program graduates who 

15 demonstrate evidence of improved 

16 student achievement and growth 

17 that is limited to evidence-based 

18 or externally-validated measures; 

19 ‘‘(II) evidence of training school 

20 leaders to provide strong instructional 

21 leadership and support to teachers 

22 and other staff; 

23 ‘‘(III) the number and percent24 age of recent program graduates em25 ployed as full time school leaders who 

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1 are identified as well-prepared in the 

2 surveys described in subparagraph 

3 (B); 

4 ‘‘(IV) the number and percentage 

5 of recent program graduates employed 

6 as school leaders who, based on sur7 veys described in subparagraph (C), 

8 described themselves as prepared to 

9 be effective school leaders; 

10 ‘‘(V) the number and percentage 

11 of school leaders who graduated from 

12 the educator preparation program in 

13 the most recent academic year who 

14 are employed as school leaders; and 

15 ‘‘(VI) the number and percentage 

16 of school leaders who graduated from 

17 programs and are still serving in a 

18 school leadership role 3 years and 5 

19 years after initial placement as a 

20 school leader; 

21 ‘‘(iii) for all educator preparation pro22 grams— 

23 ‘‘(I) evidence of meaningful col24 laboration with high-need local edu25 cational agencies to ensure the educamstockstill on DSK4VPTVN1PROD with BILLS

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1 tor preparation programs are pre2 paring educators to meet the work3 force needs of high-need local edu4 cational agencies and to ensure that 

5 high-need local educational agencies 

6 have a role in the design of the teach7 er or school leader candidate edu8 cation offered at educator preparation 

9 programs; and 

10 ‘‘(II) the number and percentage 

11 of graduates who are working as full12 time teachers or school leaders in 

13 high-need schools after 3 years; 

14 ‘‘(E) using the same metrics and weights 

15 to determine the performance level of all educa16 tor preparation programs in the State; 

17 ‘‘(F) public reporting of performance levels 

18 on a program by program basis based on the 

19 measures described in subparagraph (D); 

20 ‘‘(G) distribution of educator preparation 

21 program performance information to all local 

22 educational agencies and school boards in the 

23 State; 

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1 ‘‘(H) interventions for programs identified 

2 as low performing pursuant to subparagraph 

3 (A), including— 

4 ‘‘(i) for programs identified as low 

5 performing for 1 year, requiring such pro6 grams to conduct a needs assessment and 

7 develop and implement an improvement 

8 plan based on that needs assessment; 

9 ‘‘(ii) for programs identified as low 

10 performing for 3 consecutive years, requir11 ing such programs to lose eligibility for 

12 TEACH grants under subpart 9 of part A 

13 of title IV and continue to implement an 

14 improvement plan; and 

15 ‘‘(iii) for programs identified as low 

16 performing for 4 consecutive years, requir17 ing the State to terminate the ability of 

18 such program to operate; and 

19 ‘‘(I) for programs identified in the lowest 

20 performing level for 1 or more years under sub21 paragraph (A), an automatic designation as a 

22 low performing program under section 212. 

23 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en24 tity’ means— 

25 ‘‘(A) a State; or 

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1 ‘‘(B) a consortium of States. 

2 ‘‘(b) PROGRAM AUTHORIZED.— 

3 ‘‘(1) EDUCATOR PREPARATION PROGRAM RE4 FORM GRANTS.—The Secretary shall award grants 

5 to eligible entities to enable such entities to reform 

6 and improve educator preparation programs. 

7 ‘‘(2) DURATION.— 

8 ‘‘(A) IN GENERAL.—A grant awarded 

9 under this section shall be not more than 5 

10 years in duration. 

11 ‘‘(B) NUMBER OF GRANTS.—A State shall 

12 not receive, directly or as part of a consortium, 

13 more than 1 grant under this section for any 

14 grant period. 

15 ‘‘(C) REQUIREMENTS FOR ADDITIONAL

16 FUNDING.—Before receiving funding for the 

17 third or any subsequent year of the grant, the 

18 eligible entity receiving the grant shall dem19 onstrate to the Secretary that the eligible entity 

20 is— 

21 ‘‘(i) making progress in implementing 

22 the plan under subsection (c)(1)(A) at a 

23 rate that the Secretary determines will re24 sult in full implementation of the plan dur25 ing the remainder of the grant period; and 

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1 ‘‘(ii) making progress, as measured by 

2 the performance measures established by 

3 the Secretary under subsection (h), at a 

4 rate that the Secretary determines will re5 sult in reaching the measures and achiev6 ing the objectives of the grant, during the 

7 remainder of the grant period. 

8 ‘‘(D) SUBSTANTIAL PROGRESS.— 

9 ‘‘(i) IN GENERAL.—If the Secretary 

10 determines that an eligible entity receiving 

11 a grant under this section is not making 

12 substantial progress in meeting the objec13 tives of the grant, as appropriate, by the 

14 end of the third year of the grant under 

15 this section, then the Secretary may, after 

16 notice and an opportunity for a hearing in 

17 accordance with chapter 5 of title 5, 

18 United States Code— 

19 ‘‘(I) withhold funds provided 

20 under the grant under this section for 

21 failure to comply substantially with 

22 the requirements of this section; or 

23 ‘‘(II) take actions to recover 

24 funds provided under the grant if the 

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1 lowable expense, or otherwise fails to 

2 discharge its responsibility to properly 

3 account for grant funds. 

4 ‘‘(ii) USE OF RECOVERED OR UNUSED

5 FUNDS.—Any funds recovered or withheld 

6 under clause (i) shall— 

7 ‘‘(I) be credited to the appropria8 tions account from which amounts are 

9 available to make grants under this 

10 section; and 

11 ‘‘(II) remain available until ex12 pended for any purpose of such ac13 count authorized by law that relates 

14 to the program under this section. 

15 ‘‘(E) RESERVATION OF FUNDS.—From 

16 amounts made available to carry out this sec17 tion for a fiscal year, the Secretary may reserve 

18 not more than 5 percent to carry out activities 

19 related to technical assistance, outreach and 

20 dissemination, and evaluation. 

21 ‘‘(c) APPLICATION AND SELECTION CRITERIA.— 

22 ‘‘(1) APPLICATION.—An eligible entity that de23 sires to receive a grant under this section shall sub24 mit to the Secretary an application at such time, in 

25 such manner, and accompanied by such information 

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1 as the Secretary may require. At a minimum, each 

2 such application shall include— 

3 ‘‘(A) a plan to implement the required ac4 tivities in subsection (e)(1) statewide, including 

5 a description of its plan to support educator 

6 preparation programs to make the necessary re7 forms and improvements required under this 

8 section; 

9 ‘‘(B) an assurance that the eligible entity 

10 will use the Educator Preparation Program Ac11 countability and Improvement System to reward 

12 high-performing educator preparation programs 

13 and identify and improve low-performing educa14 tor preparation programs and the specific cri15 teria the eligible entity will use to identify low16 performing and high-performing educator prep17 aration programs; 

18 ‘‘(C) evidence of the steps the State has 

19 taken and will take to eliminate statutory, regu20 latory, procedural, or other barriers to facilitate 

21 the full implementation of the State plans 

22 under subparagraph (A); 

23 ‘‘(D) a comprehensive and coherent plan 

24 for using funds under this section, and other 

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1 wide reforms and improvements to educator 

2 preparation programs; 

3 ‘‘(E) evidence of collaboration between the 

4 eligible entity, State standards boards for 

5 teacher or school leader certification, local edu6 cational agencies, educator preparation pro7 grams, teachers, school leaders, and other key 

8 stakeholders within the State in developing the 

9 plan under subparagraph (A), including the de10 sign of the Education Preparation Program Ac11 countability and Improvement System; 

12 ‘‘(F) a commitment to participate in the 

13 reporting provisions under subsection (f) and 

14 the evaluation of the activities carried out under 

15 this section, as described in subsection (h); and 

16 ‘‘(G) a description of the eligible entity’s 

17 plan to regularly review the success of activities 

18 undertaken as part of the grant and continu19 ously improve such activities. 

20 ‘‘(2) SELECTION CRITERIA.—In awarding 

21 grants under this section, the Secretary shall con22 sider— 

23 ‘‘(A) the extent to which the eligible entity 

24 has the capacity to implement the activities de25 scribed in subsection (e); 

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1 ‘‘(B) the extent to which the eligible entity 

2 has a demonstrated record of effectiveness or 

3 an evidence-based plan for reforming educator 

4 preparation programs; and 

5 ‘‘(C) the likelihood of the eligible entity 

6 sustaining the reforms and improvements re7 quired under the grant, once the grant has 

8 ended and the eligible entity’s plan for sus9 taining the reforms and improvements after the 

10 grant has ended. 

11 ‘‘(d) AWARDING GRANTS.—In awarding grants under 

12 this section, the Secretary shall give priority to an eligible 

13 entity with— 

14 ‘‘(1) data systems in place to link the results of 

15 teacher or school leader evaluation systems for re16 cent program graduates back to the educator prepa17 ration programs from which they graduated; 

18 ‘‘(2) statewide teacher or school leader evalua19 tion systems based on multiple measures, that in20 clude student growth; and 

21 ‘‘(3) strong partnerships between educator 

22 preparation programs and high-need local edu23 cational agencies. 

24 ‘‘(e) ACTIVITIES.— 

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1 ‘‘(1) REQUIRED USES OF FUNDS FOR ALL

2 GRANTEES.—Each eligible entity that receives a 

3 grant under this section shall use the grant funds to 

4 do the following: 

5 ‘‘(A) Incorporate into the State’s educator 

6 preparation program approval process a re7 quirement that educator preparation entities— 

8 ‘‘(i) successfully recruit top talent and 

9 hold a high bar for admission to educator 

10 preparation programs; 

11 ‘‘(ii) present evidence demonstrating 

12 selective admission; 

13 ‘‘(iii) provide participants with clinical 

14 training, including prioritizing clinical 

15 training in high-need schools; 

16 ‘‘(iv) for entities that prepare teach17 ers, prepare all teachers to effectively teach 

18 students with disabilities and English 

19 learners, and for entities that prepare 

20 school leaders, prepare all school leaders to 

21 lead schools that effectively address the 

22 academic needs of students with disabilities 

23 and English learners; 

24 ‘‘(v) for entities that prepare teachers, 

25 ensure that all teacher candidates demmstockstill on DSK4VPTVN1PROD with BILLS

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1 onstrate subject matter mastery and mas2 tery of effective classroom management, 

3 and for entities that prepare school lead4 ers, ensure that all school leader can5 didates demonstrate mastery of school 

6 management techniques, including strate7 gies for creating a positive learning envi8 ronment that conveys high expectations for 

9 all students and equitably implementing 

10 school discipline policies; 

11 ‘‘(vi) ensure that all teachers and 

12 school leaders develop teaching skills and 

13 school leadership skills, respectively; and 

14 ‘‘(vii) are aligned with research-based 

15 professional teaching or leadership stand16 ards. 

17 ‘‘(B) Design and implement an Educator 

18 Preparation Program Accountability and Im19 provement System and require all educator 

20 preparation programs to be included in such 

21 system. 

22 ‘‘(C) Require all educator preparation pro23 grams to regularly communicate with the in24 State local educational agencies they predomi25 nantly serve to ascertain the agencies’ educator 

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1 workforce needs and whether the educator prep2 aration programs are meeting the workforce 

3 needs and whether recent program graduates 

4 have the skills needed to be effective. 

5 ‘‘(D) Require all educator preparation pro6 grams to utilize satisfaction surveys of recent 

7 program graduates that are conducted by the 

8 States to improve educator preparation pro9 grams. 

10 ‘‘(E) Require all educator preparation pro11 grams to utilize satisfaction surveys of employ12 ers that are conducted by the States to ascer13 tain employer satisfaction with recent program 

14 graduates of educator preparation programs. 

15 ‘‘(F) Ensure statewide data systems, in16 cluding the Educator Preparation Program Ac17 countability and Improvement System, do not 

18 publicly report personally identifiable informa19 tion of educators or elementary school or sec20 ondary school students, comply with section 444 

21 of the General Education Provisions Act ((20 

22 U.S.C. 1232g), commonly known as the ‘Family 

23 Educational Rights and Privacy Act of 1974’), 

24 and share with educator preparation programs 

25 the aggregate data on— 

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1 ‘‘(i) the aggregate impact their recent 

2 program graduates have on student 

3 achievement as demonstrated through 

4 teacher or school leader evaluation results 

5 of their program graduates; 

6 ‘‘(ii) retention of their program grad7 uates, including at— 

8 ‘‘(I) 3 years after initial place9 ment as a teacher or school leader; 

10 and 

11 ‘‘(II) 5 years after initial place12 ment as a teacher or school leader; 

13 and 

14 ‘‘(iii) the number and percentage of 

15 recent program graduates hired into full16 time positions as teachers or school leaders 

17 within 1 year of certification or licensure. 

18 ‘‘(G) Report publicly on the aggregate per19 formance of each educator preparation program 

20 operating in the State, including aggregate data 

21 on the measures described in subparagraph (F), 

22 and ensure that key stakeholders such as appli23 cants to teacher preparation programs or school 

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1 tors, and school board members, receive these 

2 performance results. 

3 ‘‘(H) Redesign certification and licensing 

4 exams to ensure that such exams are aligned 

5 with the State’s challenging academic content 

6 standards and challenging student academic 

7 achievement standards required under section 

8 1111(b) of the Elementary and Secondary Edu9 cation Act of 1965, educator performance as10 sessments, and educator evaluation systems. 

11 ‘‘(I) Utilize data collected, as described in 

12 subsection (a)(1), in program approval, pro13 gram re-approval, program improvement, and 

14 program closures processes. 

15 ‘‘(J) Require all educator preparation pro16 grams within the State to offer a high-quality 

17 clinical training to educator candidates. 

18 ‘‘(2) REQUIRED USES OF FUNDS FOR CON19 SORTIA GRANTEES.—Each eligible entity that re20 ceives a grant under this section and is a consortium 

21 of States shall use the grant funds to carry out the 

22 uses of funds under paragraph (1) and each of the 

23 following: 

24 ‘‘(A) Develop consistent program quality 

25 and accountability indicators across State lines. 

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1 ‘‘(B) Develop consistent measures for iden2 tifying educator preparation programs as low 

3 performing. 

4 ‘‘(C) Develop systems for the sharing of 

5 the data required under the Educator Prepara6 tion Program Accountability and Improvement 

7 System across State lines that complies with all 

8 relevant Federal and State privacy laws, includ9 ing section 444 of the General Education Provi10 sions Act ((20 U.S.C. 1232g), commonly known 

11 as the ‘Family Educational Rights and Privacy 

12 Act of 1974’). 

13 ‘‘(3) PERMISSIVE USES OF FUNDS.—Each eligi14 ble entity that receives a grant under this section 

15 may use the grant funds (after meeting all the re16 quired uses of funds under paragraph (1) and, as 

17 applicable, paragraph (2)) to do the following: 

18 ‘‘(A) Incentivize educator preparation pro19 grams to pursue programmatic accreditation. 

20 ‘‘(B) Improve diversity of teacher or school 

21 leader candidates in educator preparation pro22 grams. 

23 ‘‘(C) Develop partnerships between high24 need local educational agencies and educator 

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1 duction programs and mentoring programs for 

2 new educators. 

3 ‘‘(D) Provide subgrants for educator devel4 opment. In this subparagraph, the term ‘educa5 tor’ means specialized instructional support per6 sonnel, or other staff member who provides or 

7 directly supports instruction, such as a school 

8 librarian, counselor, or paraprofessional. 

9 ‘‘(E) Include, in the subgrants provided 

10 under subparagraph (D), the following activi11 ties: 

12 ‘‘(i) Implementing curriculum changes 

13 that improve, evaluate, and assess how well 

14 educators develop instructional skills. 

15 ‘‘(ii) Preparing educators to use em16 pirically based practice and scientifically 

17 valid research, where applicable. 

18 ‘‘(iii) Providing pre-service clinical 

19 training. 

20 ‘‘(iv) Creating induction programs for 

21 new educators. 

22 ‘‘(v) Aligning recruitment and admis23 sions goals and priorities with the hiring 

24 objectives with local educational agencies 

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1 in the State, including high-need local edu2 cational agencies. 

3 ‘‘(f) REPORTING.—An eligible entity that receives a 

4 grant under this section shall submit to the Secretary and 

5 make publicly available, at such time and in such manner 

6 as the Secretary may require, an annual report, including, 

7 at a minimum— 

8 ‘‘(1) data on the eligible entity’s progress on 

9 the performance measures established by the Sec10 retary under subsection (h); 

11 ‘‘(2) a description of the challenges the eligible 

12 entity has faced in implementing its plan under this 

13 section, and how the eligible entity has addressed or 

14 plans to address such challenges; and 

15 ‘‘(3) data on educator preparation programs in 

16 the State recruiting and selecting candidates who 

17 are members of groups underrepresented in the 

18 teaching profession. 

19 ‘‘(g) SUPPLEMENT, NOT SUPPLANT.—Grant funds 

20 provided under this section shall be used to supplement, 

21 and not supplant, any other Federal, State, or local funds 

22 otherwise available to carry out the activities described in 

23 this section. 

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1 ‘‘(h) RESEARCH, EVALUATION, AND DISSEMINA2 TION.—The Secretary, acting through the Director of the 

3 Institute of Education Sciences, shall— 

4 ‘‘(1) develop performance measures to evaluate 

5 the effectiveness of the activities carried out under 

6 this grant program; and 

7 ‘‘(2) identify best practices and disseminate re8 search on best practices. 

9 ‘‘(i) DEVELOPMENT OF PERFORMANCE MEAS10 URES.—The Secretary shall establish performance meas11 ures described under subsection (h) prior to awarding 

12 grants under this section. The Secretary shall ensure that 

13 such measure are made available to potential applicants 

14 prior to seeking applications for grants under this section. 

15 ‘‘(j) TEACHER OR SCHOOL LEADER PRIVACY.—No 

16 State or local educational agency shall be required to pub17 licly report information in compliance with this section in 

18 a case in which the results would reveal personally identifi19 able information about an individual teacher or school 

20 leader. 

21 ‘‘(k) CONSTRUCTION.—Nothing in this section shall 

22 be construed to alter or otherwise affect the rights, rem23 edies, and procedures afforded school or school district 

24 employees under Federal, State or local laws (including 

25 applicable regulators or court orders) or under the terms 

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1 of collective bargaining agreements, memoranda of under2 standing, or other agreements between such employees 

3 and their employers. 

4 ‘‘(l) REPORT TO CONGRESS.—Not later than 5 years 

5 after the date of enactment of the Higher Education Af6 fordability Act, the Secretary shall submit a report to the 

7 Committee on Health, Education, Labor, and Pensions of 

8 the Senate, the Committee on Appropriations of the Sen9 ate, the Committee on Education and the Workforce of 

10 the House of Representatives, and the Committee on Ap11 propriations of the House of Representatives on lessons 

12 learned through programs funded with grants awarded 

13 under this section and shall make such report publicly 

14 available. 

15 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated to carry out this section 

17 such sums as may be necessary for fiscal year 2015 and 

18 each of the 5 succeeding fiscal years. 

19 ‘‘PART C—EDUCATOR PREPARATION PROGRAM 

20 REPORTING AND IMPROVEMENT 

21 ‘‘SEC. 210. INFORMATION ON EDUCATOR PREPARATION 

22 PROGRAMS. 

23 ‘‘(a) INSTITUTIONAL AND PROGRAM REPORT CARDS

24 ON THE QUALITY OF EDUCATOR PREPARATION.— 

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1 ‘‘(1) REPORT CARD.—Each institution of higher 

2 education that conducts a traditional educator prep3 aration program or alternative routes to State cer4 tification or licensure program and that enrolls stu5 dents receiving Federal assistance under this Act 

6 and each educator preparation entity that is not 

7 based at an institution of higher education and that 

8 receives Federal assistance shall report annually to 

9 the State and the general public, in a uniform and 

10 comprehensible manner that conforms with the defi11 nitions and methods established by the Secretary, 

12 the following, in the aggregate for each institution 

13 and entity and disaggregated by program within 

14 each institution and entity: 

15 ‘‘(A) GOALS AND ASSURANCES.—For the 

16 most recent year for which the information is 

17 available for the institution or entity— 

18 ‘‘(i) whether the goals set under sec19 tion 211 have been met; and 

20 ‘‘(ii) if the goals under section 211 

21 have not been met, a description of the 

22 steps the program is taking to improve its 

23 performance in meeting such goals. 

24 ‘‘(B) PASS RATES AND SCALED SCORES.— 

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1 tion is available for those program participants 

2 who took the assessments used for teacher or 

3 school leader certification or licensure by the 

4 State in which the program is located and are 

5 enrolled in the traditional educator preparation 

6 program or alternative routes to State certifi7 cation or licensure program, for each of such 

8 assessments— 

9 ‘‘(i) the percentage of all program 

10 participants who have taken the assess11 ment who have passed such assessment 

12 compared to the average passage rate per13 centage in the State on such assessment; 

14 ‘‘(ii) the percentage of all program 

15 participants who have taken the assess16 ment who passed such assessment on the 

17 first time taking the assessment compared 

18 to the first-time average passage rate in 

19 the State on such assessment; 

20 ‘‘(iii) the percentage of program par21 ticipants who have taken such assessment 

22 and enrolled in the traditional teacher or 

23 school leader preparation program or alter24 native routes to State certification or licen25 sure program, as applicable; 

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1 ‘‘(iv) the average scaled score for all 

2 program participants who have taken such 

3 assessment, as compared to the passing 

4 score required by the State on such assess5 ment; 

6 ‘‘(v) the average scaled score for all 

7 program participants who have taken such 

8 assessment for the first time compared to 

9 the average scaled score for programs in 

10 the State; and 

11 ‘‘(vi) if applicable, the percentage of 

12 all program participants who have taken 

13 and passed a teacher performance assess14 ment compared to the average passage rate 

15 for all programs in the State on such as16 sessment. 

17 ‘‘(C) CANDIDATE INFORMATION.—For the 

18 most recent academic year for which data is 

19 available— 

20 ‘‘(i) the median cumulative grade 

21 point average of admitted program partici22 pants compared to the institution or entity 

23 as a whole; 

24 ‘‘(ii) the median score on standardized 

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1 gram participants compared to the institu2 tion or entity as a whole, as applicable; 

3 ‘‘(iii) in the aggregate and 

4 disaggregated by race, ethnicity, gender, 

5 and Pell Grant recipient status, the num6 ber of program participants who— 

7 ‘‘(I) enrolled in the program; and 

8 ‘‘(II) completed or graduated 

9 from the program in 100 percent of 

10 normal time and 150 percent of nor11 mal time; and 

12 ‘‘(iv) the total number of program 

13 participants who have been certified or li14 censed as teachers or school leaders, 

15 disaggregated by race, ethnicity, gender, 

16 Pell Grant recipient status, subject and 

17 area of certification or licensure. 

18 ‘‘(D) PROGRAM INFORMATION.—For the 

19 most recent academic year for which data is 

20 available— 

21 ‘‘(i) the percentage of enrolled pro22 gram participants who participated in a 

23 clinical training; 

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1 ‘‘(ii) the number of hours of clinical 

2 training required for program participants; 

3 and 

4 ‘‘(iii) the percentage of program par5 ticipants graduating from or completing 

6 the program who obtained at minimum 50 

7 percent of clinical training in high-need 

8 schools. 

9 ‘‘(E) ACCREDITATION AND APPROVAL.— 

10 Whether the program is accredited by a special11 ized accrediting agency recognized by the Sec12 retary for accreditation of professional educator 

13 preparation programs and whether the program 

14 is approved by the State. 

15 ‘‘(F) DESIGNATION AS LOW-PER16 FORMING.—Whether the program has been des17 ignated as low performing by the State under 

18 section 212. 

19 ‘‘(G) EDUCATOR TRAINING.—A list of the 

20 activities that prepare— 

21 ‘‘(i) general education and special 

22 education teachers and other educators to 

23 effectively teach students with disabilities 

24 effectively, including training related to 

25 participation as a member of individualized 

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1 education program teams, as defined in 

2 section 614(d)(1)(B) of the Individuals 

3 with Disabilities Education Act, and to ef4 fectively teach students who are English 

5 learners; and 

6 ‘‘(ii) school leaders to effectively de7 velop a shared vision for high achievement 

8 and college and career readiness for all 

9 students, including creating structures and 

10 staffing to meet the needs of all students, 

11 in particular students with disabilities and 

12 English learners. 

13 ‘‘(2) FINES.—The Secretary may impose a fine 

14 not to exceed $27,500 on an institution of higher 

15 education or educator preparation entity that is not 

16 based at an institution of higher education for fail17 ure to provide the information described in this sub18 section in a timely or accurate manner. 

19 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

20 this section shall be construed to prevent a State 

21 from collecting and reporting additional data indica22 tors regarding teacher preparation programs. 

23 ‘‘(4) SPECIAL RULE.—In the case of an institu24 tion of higher education, or educator preparation en25 tity that is not based at an institution of higher edumstockstill on DSK4VPTVN1PROD with BILLS

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1 cation, that conducts a traditional educator prepara2 tion program or alternative routes to State certifi3 cation or licensure program and has fewer than 10 

4 program participants in a program, the institution 

5 or entity shall collect and publish information, as re6 quired under paragraph (1) over a 3-year period. 

7 ‘‘(5) PROTECTION FOR TEACHER OR LEADER

8 IDENTITY AND DATA VALIDITY.—The Secretary, in 

9 consultation with the Commissioner of the National 

10 Center for Education Statistics, shall ensure that 

11 data collected under paragraph (1) and subsection 

12 (b) is collected in a way to protect the privacy of 

13 teacher or school leader candidates, as well as teach14 ers or school leaders, and to ensure there is suffi15 cient data quality to ensure the validity of conclu16 sions to be drawn from the data collection. 

17 ‘‘(b) STATE REPORT CARD ON THE QUALITY OF ED18 UCATOR PREPARATION.— 

19 ‘‘(1) IN GENERAL.—Each State that receives 

20 funds under this Act shall provide to the Secretary, 

21 and make widely available to the general public and 

22 to all local educational agencies located within the 

23 State, including by sending information about the 

24 State report card to every local educational agency 

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1 ner that conforms with the definitions and methods 

2 established by the Secretary, an annual State report 

3 card on the quality of educator preparation in the 

4 State, both for traditional educator preparation pro5 grams and for alternative routes to State certifi6 cation or licensure programs, which shall include not 

7 less than the following: 

8 ‘‘(A) All information reported under sub9 section (a)(1), for the State as a whole, and for 

10 each educator preparation program located 

11 within the State. 

12 ‘‘(B) For the most recent year for which 

13 the information is available for each educator 

14 preparation program located within the State— 

15 ‘‘(i) the number and percentage of re16 cent program graduates hired into full17 time positions as teachers or school leaders 

18 within 1 year of certification or licensure, 

19 in the aggregate and reported separately 

20 by— 

21 ‘‘(I) teachers in high-need subject 

22 areas or fields; 

23 ‘‘(II) high-need schools; and 

24 ‘‘(III) certification or licensure 

25 type; 

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1 ‘‘(ii) for teacher preparation pro2 grams, the number and percentage of re3 cent program graduates hired into full4 time positions as teachers who served for 

5 periods of not less than 3 academic years 

6 after their initial placement in a teacher 

7 position, in the aggregate and reported 

8 separately by— 

9 ‘‘(I) teachers in high-need subject 

10 areas or fields; 

11 ‘‘(II) high-need schools; 

12 ‘‘(III) certification or licensure 

13 type; and 

14 ‘‘(iii) for school leader preparation 

15 programs, the number and percentage of 

16 recent program graduates hired into full17 time positions as school leaders who served 

18 for periods of not less than 3 academic 

19 years after their initial placement in a 

20 school leader position, in the aggregated 

21 and reported separately by— 

22 ‘‘(I) principals; 

23 ‘‘(II) assistant principals; and 

24 ‘‘(III) high-need schools. 

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1 ‘‘(C) For recent program graduates at 

2 each educator preparation program in the 

3 State— 

4 ‘‘(i) the percentage of recent program 

5 graduates whose elementary and secondary 

6 students demonstrate evidence of improved 

7 student growth on State teacher or leader 

8 evaluation systems, if States have such 

9 teacher or leader evaluation systems; and 

10 ‘‘(ii) the percentage of recent program 

11 graduates who are rated highly based on 

12 results from State-administered satisfac13 tion surveys, as available, and the percent14 age of recent program graduates who self15 identify as prepared to be effective teach16 ers or school leaders based on results from 

17 State-administered satisfaction surveys, as 

18 available. 

19 ‘‘(D) Any educator preparation program 

20 that has a first-time passage rate for all test 

21 takers from the program (regardless of whether 

22 or not they are considered program graduates) 

23 on assessments used for teacher or school lead24 er certification or licensure below 80 percent. 

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1 ‘‘(E) The total number of teachers cer2 tified or licensed in the preceding year in each 

3 high-need subject or field, as compared to the 

4 number of teachers needed in each high-need 

5 subject or field, and the total number of school 

6 leaders certified or licensed in the preceding 

7 year and serving in a high-need school com8 pared to the number of school leaders needed in 

9 a high-need school, by elementary schools and 

10 secondary schools located within the State. 

11 ‘‘(2) STATE REPORT CARD DISTRIBUTION AND

12 PUBLICATION.—Each academic year, a State shall— 

13 ‘‘(A) submit the report card required 

14 under paragraph (1) for the State and for each 

15 educator preparation program in the State to 

16 the Secretary; 

17 ‘‘(B) publish the State’s and each educator 

18 preparation program’s report cards on the 

19 website of the State educational agency; 

20 ‘‘(C) require that each educator prepara21 tion program in the State publish the report 

22 card required under paragraph (1) on the pro23 gram’s website and provide the report card to 

24 prospective teacher and school leader candidates 

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1 as well as teacher and school leader candidates 

2 accepted for admission; and 

3 ‘‘(D) provide the report card required 

4 under paragraph (1) to each local educational 

5 agency in the State. 

6 ‘‘(3) LOW-PERFORMING PROGRAMS.—Each 

7 State receiving funds under this Act shall provide— 

8 ‘‘(A) the State’s criteria for assessing the 

9 performance of educator preparation programs 

10 in the State, including the measures described 

11 in section 212(a); 

12 ‘‘(B) a list of all programs identified as 

13 low performing under section 212, and an iden14 tification of those programs at risk of being 

15 placed on such list, including a specification of 

16 the factors that led to each program’s identi17 fication; 

18 ‘‘(C) for States that do not identify any 

19 programs as low performing under section 212 

20 or at risk of being classified as low performing, 

21 a description of the reliability and validity of 

22 the measures used to assess program perform23 ance and evidence that each program met the 

24 State’s criteria for assessing performance of 

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1 teacher preparation programs and school leader 

2 preparation programs; and 

3 ‘‘(D) for States that do not identify any 

4 programs as low performing under section 212 

5 or at risk of being classified as low performing, 

6 an explanation of why programs that have first7 time passage rates under 80 percent on assess8 ments used for teacher or school leader certifi9 cation or licensure are not identified as low-per10 forming by the State. 

11 ‘‘(4) PROHIBITION AGAINST CREATING A NA12 TIONAL LIST.—The Secretary shall not create a na13 tional list or ranking of States, institutions, or 

14 schools using the scaled scores provided under this 

15 subsection. 

16 ‘‘(c) DATA QUALITY.—The Secretary shall prescribe 

17 regulations to ensure the reliability, validity, integrity, and 

18 accuracy of the data submitted pursuant to this section. 

19 ‘‘(d) REPORT OF THE SECRETARY ON THE QUALITY

20 OF EDUCATOR PREPARATION.— 

21 ‘‘(1) REPORT CARD.—The Secretary shall annu22 ally provide to the authorizing committees, and pub23 lish and make widely available, a report card on 

24 teacher and school leader qualifications and prepara25 tion in the United States, including all the informamstockstill on DSK4VPTVN1PROD with BILLS

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1 tion reported in subsection (b)(1). Such report shall 

2 identify States which received a grant under this 

3 part as part of an eligible partnership. 

4 ‘‘(2) REPORT TO CONGRESS.—The Secretary 

5 shall prepare and submit a report to the authorizing 

6 committees and make such report publicly available 

7 that contains the following: 

8 ‘‘(A) A comparison of States’ efforts to im9 prove the quality of the current and future edu10 cator force, including a list of those States that 

11 did not identify any programs as low per12 forming under section 212, or at risk for being 

13 identified as low performing, and an assessment 

14 of the reliability and validity of the criteria used 

15 to by such States to evaluate program perform16 ance. 

17 ‘‘(B) A comparison of eligible partnerships’ 

18 efforts to improve the quality of the current 

19 and future educator force. 

20 ‘‘(C) The national mean and median scaled 

21 scores and pass rate on any standardized test 

22 that is used in more than one State for teacher 

23 or school leader certification or licensure. 

24 ‘‘(3) SPECIAL RULE.—In the case of a teacher 

25 preparation program or school leader preparation 

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1 program with fewer than 10 graduates in a pro2 gram, the Secretary shall collect and publish, and 

3 make publicly available, the information required 

4 under subsection (b)(1) taken over a 3-year period. 

5 ‘‘(e) COORDINATION.—The Secretary, to the extent 

6 practicable, shall coordinate the information collected and 

7 published under this part among States for individuals 

8 who took State teacher certification or licensure assess9 ments in a State other than the State in which the indi10 vidual received the individual’s most recent degree. 

11 ‘‘SEC. 211. GOALS FOR MEETING THE NEEDS OF EDUCATOR 

12 SHORTAGE AREAS. 

13 ‘‘(a) ANNUAL GOALS.—Each institution of higher 

14 education that offers a traditional educator preparation 

15 program (including programs that offer any ongoing pro16 fessional development programs) or alternative routes to 

17 State certification or licensure program, and that enrolls 

18 students receiving Federal assistance under this Act, and 

19 each non-institution of higher education-based educator 

20 preparation entity receiving Federal assistance shall set 

21 annual quantifiable goals for increasing the number of 

22 prospective educators trained in educator shortage areas 

23 designated by the Secretary or by the State educational 

24 agency, including mathematics, science, special education, 

25 and instruction of English learners. 

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1 ‘‘(b) ASSURANCES.—Each institution described in 

2 subsection (a) shall provide assurances to the Secretary 

3 that— 

4 ‘‘(1) training provided to prospective educators 

5 responds to the identified needs of the local edu6 cational agencies or States where the institution’s 

7 graduates are likely to teach or lead, based on past 

8 hiring and recruitment trends; 

9 ‘‘(2) training provided to prospective educators 

10 is closely linked with the needs of schools and the in11 structional decisions new teachers or school leaders 

12 face in the classroom and school; 

13 ‘‘(3) prospective special education teachers re14 ceive course work in core academic subjects and re15 ceive training in providing instruction in core aca16 demic subjects; 

17 ‘‘(4) general education teachers receive training 

18 in providing instruction to diverse populations, in19 cluding children with disabilities, English learners, 

20 and children from low-income families; and 

21 ‘‘(5) prospective educators receive training on 

22 how to effectively meet the needs of urban and rural 

23 schools, as applicable. 

24 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec25 tion shall be construed to require an institution to create 

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1 a new educator preparation area of concentration or de2 gree program or adopt a specific curriculum in complying 

3 with this section. 

4 ‘‘SEC. 212. STATE IDENTIFICATION OF LOW-PERFORMING 

5 PROGRAMS. 

6 ‘‘(a) STATE ASSESSMENT.—In order to receive funds 

7 under this Act, a State shall conduct an assessment to 

8 identify low-performing educator preparation programs in 

9 the State and to assist such programs through the provi10 sion of technical assistance. Each such State shall provide 

11 the Secretary with an annual list of low-performing educa12 tor preparation programs and an identification of those 

13 programs at risk of being placed on such list, as applica14 ble. Such assessment shall be described in the report 

15 under section 210(b). Levels of performance shall be de16 termined by the State and shall include, at minimum— 

17 ‘‘(1) measures of candidates’ academic 

18 strength, such as median cumulative grade point 

19 averages or median standardized entrance examina20 tion scores of admitted students; 

21 ‘‘(2) first-time passage rates and scaled scores 

22 on assessments used for teacher or school leader cer23 tification or licensure by the State; 

24 ‘‘(3) the number of hours of clinical training re25 quired for program candidates; 

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1 ‘‘(4) programs’ progress towards achieving 

2 goals set under section 211(a); 

3 ‘‘(5) employment outcomes for recent program 

4 graduates, including job placement rates and reten5 tion rates, particularly in high-need schools; 

6 ‘‘(6) recent program graduates’ results from 

7 teacher or leader evaluations; and 

8 ‘‘(7) results of satisfaction surveys, as applica9 ble. 

10 ‘‘(b) TERMINATION OF ELIGIBILITY.—Any educator 

11 preparation program from which the State has withdrawn 

12 the State’s approval, or terminated the State’s financial 

13 support, due to the low performance of the program based 

14 upon the State assessment described in subsection (a)— 

15 ‘‘(1) shall be ineligible for any funding for pro16 fessional development activities awarded by the De17 partment; 

18 ‘‘(2) may not be permitted to accept or enroll 

19 any student who receives aid under title IV in the 

20 institution’s educator preparation program; 

21 ‘‘(3) shall provide transitional support, includ22 ing remedial services if necessary, for students en23 rolled at the institution at the time of termination 

24 of financial support or withdrawal of approval; and 

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1 ‘‘(4) shall be reinstated upon demonstration of 

2 improved performance, as determined by the State. 

3 ‘‘(c) NEGOTIATED RULEMAKING.—If the Secretary 

4 develops any regulations implementing subsection (b)(2), 

5 the Secretary shall submit such proposed regulations to 

6 a negotiated rulemaking process, which shall include rep7 resentatives of States, institutions of higher education, 

8 and educational and student organizations. 

9 ‘‘(d) APPLICATION OF THE REQUIREMENTS.—The 

10 requirements of this section shall apply to both traditional 

11 educator preparation programs and alternative routes to 

12 State certification and licensure programs. 

13 ‘‘SEC. 213. GENERAL PROVISIONS. 

14 ‘‘(a) METHODS.—The Secretary shall ensure that 

15 States, institutions of higher education, and educator 

16 preparation entities, use fair and equitable methods in re17 porting under this part and that the reporting methods 

18 do not reveal personally identifiable information. 

19 ‘‘(b) SPECIAL RULE.—For each State that does not 

20 use content assessments as a means of ensuring that all 

21 teachers teaching in core academic subjects within the 

22 State are highly qualified, as required under section 1119 

23 of the Elementary and Secondary Education Act of 1965, 

24 in accordance with the State plan submitted or revised 

25 under section 1111 of such Act, and that each person emmstockstill on DSK4VPTVN1PROD with BILLS

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1 ployed as a special education teacher in the State who 

2 teaches elementary school or secondary school is highly 

3 qualified by the deadline, as required under section 

4 612(a)(14)(C) of the Individuals with Disabilities Edu5 cation Act, the Secretary shall— 

6 ‘‘(1) to the extent practicable, collect data com7 parable to the data required under this part from 

8 States, local educational agencies, institutions of 

9 higher education, or other entities that administer 

10 such assessments to teachers or prospective teachers; 

11 and 

12 ‘‘(2) notwithstanding any other provision of this 

13 part, use such data to carry out requirements of this 

14 part related to assessments, pass rates, and scaled 

15 scores. 

16 ‘‘(c) RELEASE OF INFORMATION TO EDUCATOR

17 PREPARATION PROGRAMS.— 

18 ‘‘(1) IN GENERAL.—For the purpose of improv19 ing teacher and school leader preparation programs, 

20 a State that receives funds under this Act, or that 

21 participates as a member of a partnership, consor22 tium, or other entity that receives such funds, shall 

23 provide to an educator preparation program any and 

24 all pertinent education-related information that— 

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1 ‘‘(A) may enable the educator preparation 

2 program to evaluate the effectiveness of the 

3 program’s graduates or the program itself; and 

4 ‘‘(B) is possessed, controlled, or accessible 

5 by or through the State. 

6 ‘‘(2) DATA REQUIRED TO BE SHARED.—In ad7 dition to the information described in paragraph (1), 

8 the State shall share with each educator preparation 

9 program in the State, and to the extent practicable, 

10 with educator preparation programs in other States 

11 whose program graduates are teaching in the State, 

12 data from teacher or school leader evaluation re13 sults, including any information necessary to com14 plete subsections (a) and (b) of section 210. 

15 ‘‘(3) PRIVACY.—The information and data re16 quired under paragraphs (1) and (2) to be shared 

17 shall— 

18 ‘‘(A) include aggregate elementary and sec19 ondary academic achievement, without revealing 

20 personally identifiable information about an in21 dividual student, for students who have been 

22 taught by graduates of the educator prepara23 tion program, as available; and 

24 ‘‘(B) comply with section 444 of the Gen25 eral Education Provisions Act (20 U.S.C. 

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1 1232g, commonly known as the ‘Family Edu2 cational Rights and Privacy Act of 1974’). 

3 ‘‘(d) FUNDING.—A State may use funds made avail4 able under section 2113(a)(3) of the Elementary and Sec5 ondary Education Act of 1965 to carry out this section. 

6 ‘‘PART D—ENHANCING TEACHER EDUCATION 

7 ‘‘Subpart 1—Honorable Augustus F. Hawkins Centers 

8 of Excellence 

9 ‘‘SEC. 214. DEFINITIONS. 

10 ‘‘In this subpart: 

11 ‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligi12 ble institution’ means— 

13 ‘‘(A) an institution of higher education 

14 that offers a teacher preparation program that 

15 is— 

16 ‘‘(i) a part B institution (as defined in 

17 section 322); 

18 ‘‘(ii) a Hispanic-serving institution (as 

19 defined in section 502); 

20 ‘‘(iii) a Tribal College or University 

21 (as defined in section 316); 

22 ‘‘(iv) an Alaska Native-serving institu23 tion (as defined in section 317(b)); 

24 ‘‘(v) a Native Hawaiian-serving insti25 tution (as defined in section 317(b)); 

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1 ‘‘(vi) a Predominantly Black Institu2 tion (as defined in section 318); 

3 ‘‘(vii) an Asian American and Native 

4 American Pacific Islander-serving institu5 tion (as defined in section 320(b)); or 

6 ‘‘(viii) a Native American-serving, 

7 nontribal institution (as defined in section 

8 319); 

9 ‘‘(B) a consortium of institutions described 

10 in subparagraph (A); or 

11 ‘‘(C) an institution described in subpara12 graph (A), or a consortium described in sub13 paragraph (B), in partnership with any other 

14 institution of higher education, but only if the 

15 center of excellence established under section 

16 215 is located at an institution described in 

17 subparagraph (A). 

18 ‘‘(2) SCIENTIFICALLY BASED READING RE19 SEARCH.—The term ‘scientifically based reading re20 search’ has the meaning given such term in section 

21 1208 of the Elementary and Secondary Education 

22 Act of 1965. 

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1 ‘‘SEC. 215. AUGUSTUS F. HAWKINS CENTERS OF EXCEL2 LENCE. 

3 ‘‘(a) PROGRAM AUTHORIZED.—From the amounts 

4 appropriated to carry out this part, the Secretary is au5 thorized to award competitive grants to eligible institu6 tions to establish centers of excellence. 

7 ‘‘(b) USE OF FUNDS.—Grants provided by the Sec8 retary under this subpart shall be used to ensure that cur9 rent and future teachers are highly qualified by carrying 

10 out 1 or more of the following activities: 

11 ‘‘(1) Implementing reforms within teacher prep12 aration programs to ensure that such programs are 

13 preparing teachers who are highly qualified, are able 

14 to understand scientifically valid research, and are 

15 able to use advanced technology effectively in the 

16 classroom, including use of instructional techniques 

17 to improve student academic achievement, by— 

18 ‘‘(A) retraining or recruiting faculty; and 

19 ‘‘(B) designing (or redesigning) teacher 

20 preparation programs that— 

21 ‘‘(i) prepare teachers to serve in low22 performing schools and close student 

23 achievement gaps, and that are based on 

24 rigorous academic content, scientifically 

25 valid research (including scientifically 

26 based reading research and mathematics 

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1 research, as it becomes available), and 

2 challenging State academic content stand3 ards and student academic achievement 

4 standards; and 

5 ‘‘(ii) promote strong teaching skills. 

6 ‘‘(2) Providing sustained and high-quality 

7 preservice clinical training, including the mentoring 

8 of prospective teachers by exemplary teachers, sub9 stantially increasing interaction between faculty at 

10 institutions of higher education and new and experi11 enced teachers, school leaders, and other administra12 tors at elementary schools or secondary schools, and 

13 providing support, including preparation time, for 

14 such interaction. 

15 ‘‘(3) Developing and implementing initiatives to 

16 promote retention of highly qualified teachers and 

17 school leaders, including minority teachers and 

18 school leaders, including programs that provide— 

19 ‘‘(A) teacher or school leader mentoring 

20 from exemplary teachers or school leaders, re21 spectively; or 

22 ‘‘(B) induction and support for teachers 

23 and school leaders during their first 3 years of 

24 employment as teachers or school leaders, re25 spectively. 

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1 ‘‘(4) Awarding scholarships based on financial 

2 need to help students pay the costs of tuition, room, 

3 board, and other expenses of completing a teacher 

4 preparation program, not to exceed the cost of at5 tendance. 

6 ‘‘(5) Disseminating information on effective 

7 practices for teacher preparation and successful 

8 teacher certification and licensure assessment prepa9 ration strategies. 

10 ‘‘(6) Activities authorized under section 202. 

11 ‘‘(c) APPLICATION.—Any eligible institution desiring 

12 a grant under this subpart shall submit an application to 

13 the Secretary at such a time, in such a manner, and ac14 companied by such information as the Secretary may re15 quire. 

16 ‘‘(d) MINIMUM GRANT AMOUNT.—The minimum 

17 amount of each grant under this subpart shall be 

18 $500,000. 

19 ‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.— 

20 An eligible institution that receives a grant under this sub21 part may use not more than 2 percent of the funds pro22 vided to administer the grant. 

23 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

24 such regulations as may be necessary to carry out this 

25 subpart. 

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1 ‘‘Subpart 2—Preparing General Education Teachers 

2 To More Effectively Educate Students With Dis3 abilities 

4 ‘‘SEC. 216. TEACH TO REACH GRANTS. 

5 ‘‘(a) AUTHORIZATION OF PROGRAM.— 

6 ‘‘(1) IN GENERAL.—The Secretary is authorized 

7 to award grants, on a competitive basis, to eligible 

8 partnerships to improve the preparation of general 

9 education teacher candidates to ensure that such 

10 teacher candidates possess the knowledge and skills 

11 necessary to effectively instruct students with dis12 abilities in general education classrooms. 

13 ‘‘(2) DURATION OF GRANTS.—A grant under 

14 this section shall be awarded for a period of not 

15 more than 5 years. 

16 ‘‘(3) NON-FEDERAL SHARE.—An eligible part17 nership that receives a grant under this section shall 

18 provide not less than 25 percent of the cost of the 

19 activities carried out with such grant from non-Fed20 eral sources, which may be provided in cash or in 

21 kind. 

22 ‘‘(b) DEFINITION OF ELIGIBLE PARTNERSHIP.—In 

23 this section, the term ‘eligible partnership’ means a part24 nership that— 

25 ‘‘(1) shall include— 

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1 ‘‘(A) 1 or more departments or programs 

2 at an institution of higher education— 

3 ‘‘(i) that prepare elementary or sec4 ondary general education teachers; 

5 ‘‘(ii) that have a program of study 

6 that leads to an undergraduate degree, a 

7 master’s degree, or completion of a 

8 postbaccalaureate program required for 

9 teacher certification; and 

10 ‘‘(iii) the graduates of which are high11 ly qualified; 

12 ‘‘(B) a department or program of special 

13 education at an institution of higher education; 

14 ‘‘(C) a department or program at an insti15 tution of higher education that provides degrees 

16 in core academic subjects; and 

17 ‘‘(D) a high-need local educational agency; 

18 and 

19 ‘‘(2) may include a department or program of 

20 mathematics, earth or physical science, foreign lan21 guage, or another department at the institution that 

22 has a role in preparing teachers. 

23 ‘‘(c) ACTIVITIES.—An eligible partnership that re24 ceives a grant under this section— 

25 ‘‘(1) shall use the grant funds to— 

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1 ‘‘(A) develop or strengthen an under2 graduate, postbaccalaureate, or master’s teach3 er preparation program by integrating special 

4 education strategies into the general education 

5 curriculum and academic content; 

6 ‘‘(B) provide teacher candidates partici7 pating in the program under subparagraph (A) 

8 with skills related to— 

9 ‘‘(i) response to intervention, positive 

10 behavioral interventions and supports, dif11 ferentiated instruction, and data driven in12 struction; 

13 ‘‘(ii) universal design for learning; 

14 ‘‘(iii) determining and utilizing accom15 modations for instruction and assessments; 

16 ‘‘(iv) collaborating with special edu17 cators, related services providers, and par18 ents, including participation in individual19 ized education program development and 

20 implementation; and 

21 ‘‘(v) appropriately utilizing technology 

22 and assistive technology for students with 

23 disabilities; and 

24 ‘‘(C) provide extensive clinical training for 

25 participants described in subparagraph (B) with 

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1 mentoring and induction program support 

2 throughout the program that continues during 

3 the first 2 years of full-time teaching; and 

4 ‘‘(2) may use grant funds to develop and ad5 minister alternate assessments of students with dis6 abilities. 

7 ‘‘(d) APPLICATION.—An eligible partnership seeking 

8 a grant under this section shall submit an application to 

9 the Secretary at such time, in such manner, and con10 taining such information as the Secretary may require. 

11 Such application shall include— 

12 ‘‘(1) a self-assessment by the eligible partner13 ship of the existing teacher preparation program at 

14 the institution of higher education and needs related 

15 to preparing general education teacher candidates to 

16 instruct students with disabilities; and 

17 ‘‘(2) an assessment of the existing personnel 

18 needs for general education teachers who instruct 

19 students with disabilities, performed by the local 

20 educational agency in which most graduates of the 

21 teacher preparation program are likely to teach after 

22 completion of the program under subsection (c)(1). 

23 ‘‘(e) PEER REVIEW.—The Secretary shall convene a 

24 peer review committee to review applications for grants 

25 under this section and to make recommendations to the 

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1 Secretary regarding the selection of grantees. Members of 

2 the peer review committee shall be recognized experts in 

3 the fields of special education, teacher preparation, and 

4 general education and shall not be in a position to benefit 

5 financially from any grants awarded under this section. 

6 ‘‘(f) EVALUATIONS.— 

7 ‘‘(1) BY THE PARTNERSHIP.— 

8 ‘‘(A) IN GENERAL.—An eligible partner9 ship receiving a grant under this section shall 

10 conduct an evaluation at the end of the grant 

11 period to determine— 

12 ‘‘(i) the effectiveness of the general 

13 education teachers who completed a pro14 gram under subsection (c)(1) with respect 

15 to instruction of students with disabilities 

16 in general education classrooms; and 

17 ‘‘(ii) the systemic impact of the activi18 ties carried out by such grant on how each 

19 institution of higher education that is a 

20 member of the partnership prepares teach21 ers for instruction in elementary schools 

22 and secondary schools. 

23 ‘‘(B) REPORT TO THE SECRETARY.—Each 

24 eligible partnership performing an evaluation 

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1 under subparagraph (A) shall report the find2 ings of such evaluation to the Secretary. 

3 ‘‘(2) REPORT BY THE SECRETARY.—Not later 

4 than 180 days after the last day of the grant period 

5 under this section, the Secretary shall make avail6 able to Congress and the public the findings of the 

7 evaluations submitted under paragraph (1), and in8 formation on best practices related to effective in9 struction of students with disabilities in general edu10 cation classrooms. 

11 ‘‘PART E—GENERAL PROVISIONS 

12 ‘‘SEC. 217. LIMITATIONS. 

13 ‘‘(a) FEDERAL CONTROL PROHIBITED.—Nothing in 

14 this title shall be construed to permit, allow, encourage, 

15 or authorize any Federal control over any aspect of any 

16 private, religious, or home school, whether or not a home 

17 school is treated as a private school or home school under 

18 State law. This section shall not be construed to prohibit 

19 private, religious, or home schools from participation in 

20 programs or services under this title. 

21 ‘‘(b) NO CHANGE IN STATE CONTROL ENCOURAGED

22 OR REQUIRED.—Nothing in this title shall be construed 

23 to encourage or require any change in a State’s treatment 

24 of any private, religious, or home school, whether or not 

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1 a home school is treated as a private school or home school 

2 under State law. 

3 ‘‘(c) NATIONAL SYSTEM OF TEACHER CERTIFI4 CATION OR LICENSURE PROHIBITED.—Nothing in this 

5 title shall be construed to permit, allow, encourage, or au6 thorize the Secretary to establish or support any national 

7 system of teacher certification or licensure. 

8 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this title 

9 shall be construed to alter or otherwise affect the rights, 

10 remedies, and procedures afforded to the employees of 

11 local educational agencies under Federal, State, or local 

12 laws (including applicable regulations or court orders) or 

13 under the terms of collective bargaining agreements, 

14 memoranda of understanding, or other agreements be15 tween such employees and their employers. 

16 ‘‘(e) TEACHER OR SCHOOL LEADER PRIVACY.—No 

17 State, institution of higher education, or local educational 

18 agency shall be required to publicly report information in 

19 compliance with this title in a case in which the results 

20 would reveal personally identifiable information about an 

21 individual teacher or school leader.’’. 

22 TITLE III—INSTITUTIONAL AID 

23 SEC. 301. RULE OF CONSTRUCTION. 

24 Section 301 (20 U.S.C. 1051) is amended— 

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1 (1) in the section heading by adding ‘‘; RULE

2 OF CONSTRUCTION’’ after ‘‘FINDINGS AND PUR3 POSES’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this Act 

6 shall be construed to restrict an institution from using 

7 funds provided under a section of this title for activities 

8 and uses that were authorized under such section on the 

9 day before the date of enactment of the Higher Education 

10 Affordability Act.’’. 

11 SEC. 302. PROGRAM PURPOSE. 

12 Section 311 (20 U.S.C. 1057) is amended— 

13 (1) by striking subsection (c) and inserting the 

14 following: 

15 ‘‘(c) AUTHORIZED ACTIVITIES.—Grants awarded 

16 under this section shall be used for 1 or more of the fol17 lowing activities: 

18 ‘‘(1) The purchase, rental, or lease of edu19 cational resources. 

20 ‘‘(2) The construction, maintenance, renovation, 

21 or joint use and improvement of classrooms, librar22 ies, laboratories, or other instructional facilities, in23 cluding the integration of computer technology into 

24 institutional facilities to create smart buildings. 

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1 ‘‘(3) Support of faculty exchanges, faculty de2 velopment, and faculty fellowships to assist members 

3 of the faculty in attaining advanced degrees in their 

4 field of instruction. 

5 ‘‘(4) Student support services, including sup6 porting distance education, the development and im7 provement of academic programs, tutoring, coun8 seling, school-sanctioned travel, and financial lit9 eracy for students and families. 

10 ‘‘(5) Improving funds management, administra11 tive management, and the acquisition of equipment 

12 for use in strengthening funds management. 

13 ‘‘(6) Maintaining financial stability through es14 tablishing or developing a contributions development 

15 office or endowment fund. 

16 ‘‘(7) Other activities proposed in the application 

17 submitted pursuant to section 391 that— 

18 ‘‘(A) contribute to carrying out the pur19 poses of the program assisted under this sec20 tion; and 

21 ‘‘(B) are approved by the Secretary as part 

22 of the review and acceptance of such applica23 tion.’’; and 

24 (2) in subsection (d)— 

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1 (A) in paragraph (2), by inserting ‘‘75 per2 cent of’’ after ‘‘equal to or greater than’’; and 

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

4 ‘‘(4) SCHOLARSHIP.—An eligible institution 

5 that uses grant funds provided under this part to es6 tablish or increase an endowment fund may use the 

7 interest proceeds from such endowment to provide 

8 scholarships to students for the purposes of attend9 ing such institution.’’. 

10 SEC. 303. DURATION OF GRANT. 

11 Section 313 (20 U.S.C. 1059) is amended by adding 

12 at the end the following: 

13 ‘‘(e) REQUIREMENT FOR ADDITIONAL FUNDING.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall not 

15 award grant funds for the fourth or fifth year of a 

16 grant under this part unless the Secretary deter17 mines that the grantee is making progress in imple18 menting the activities described in the grantee’s ap19 plication under section 391 at a rate that will result 

20 in the full implementation of such activities before 

21 the end of the grant period. 

22 ‘‘(2) CONSIDERATION OF DATA AND INFORMA23 TION.—The Secretary shall consider any data or in24 formation provided to the Department by grantees 

25 for the continued receipt of grants under this title 

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1 under paragraph (1) that is considered in accord2 ance with regulations issued by the Secretary before 

3 the date of enactment of the Higher Education Af4 fordability Act. Any requirements the Secretary de5 velops for institutions in accordance with regulations 

6 issued by the Secretary after the date of enactment 

7 of the Higher Education Affordability Act to carry 

8 out this subsection shall take into account the capac9 ity and resources of institutions to comply with such 

10 requirements.’’. 

11 SEC. 304. AMERICAN INDIAN TRIBALLY CONTROLLED COL12 LEGES AND UNIVERSITIES. 

13 Section 316 (20 U.S.C. 1059c) is amended— 

14 (1) in subsection (c)— 

15 (A) by striking subparagraphs (A) through 

16 (N) and inserting the following: 

17 ‘‘(A) The activities described in section 

18 311(c). 

19 ‘‘(B) Academic instruction in disciplines in 

20 which Indians are underrepresented and in21 struction in tribal governance or tribal public 

22 policy. 

23 ‘‘(C) Establishing or enhancing a program 

24 of teacher education designed to qualify stu25 dents to teach in elementary schools or secmstockstill on DSK4VPTVN1PROD with BILLS

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1 ondary schools, with a particular emphasis on 

2 teaching Indian children and youth, that shall 

3 include, as part of such program, preparation 

4 for teacher certification. 

5 ‘‘(D) Establishing community outreach 

6 programs that encourage Indian elementary 

7 school and secondary school students to develop 

8 the academic skills and the interest to pursue 

9 postsecondary education.’’; 

10 (B) by striking paragraph (2); 

11 (C) by redesignating paragraph (3) as 

12 paragraph (2); and 

13 (i) in paragraph (2), as redesignated 

14 by subparagraph (C)— 

15 (ii) by inserting ‘‘not less than 75 per16 cent of’’ after ‘‘in an amount equal to’’; 

17 and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(D) SCHOLARSHIP.—A Tribal College or 

21 University that uses grant funds under this sec22 tion to establish or increase an endowment fund 

23 may use the interest proceeds from such endow24 ment to provide scholarships to students for the 

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1 purposes of attending such Tribal College or 

2 University.’’; and 

3 (2) in subsection (d)— 

4 (A) by striking paragraph (1); and 

5 (B) by redesignating paragraphs (2), (3), 

6 and (4), as paragraphs (1), (2), and (3), re7 spectively. 

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

9 INSTITUTIONS. 

10 Section 317(c) (20 U.S.C. 1059d(c)) is amended— 

11 (1) in paragraph (1)— 

12 (A) by striking ‘‘AUTHORIZED ACTIVI13 TIES.—’’ in the subsection heading and all that 

14 follows through ‘‘Grants awarded under this 

15 section shall’’ and inserting ‘‘AUTHORIZED AC16 TIVITIES.—Grants awarded under this section 

17 shall’’; and 

18 (B) by inserting ‘‘Such activities may in19 clude the activities described in section 311(c).’’ 

20 after ‘‘capacity to serve Alaska Natives or Na21 tive Hawaiians.’’; and 

22 (2) by striking paragraph (2). 

23 SEC. 306. PREDOMINANTLY BLACK INSTITUTIONS. 

24 Section 318(d) (20 U.S.C. 1059e(d)) is amended— 

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1 (1) in paragraph (2)(A), by striking ‘‘para2 graphs (1) through (12)’’ and inserting ‘‘paragraphs 

3 (1) through (7)’’; and 

4 (2) in paragraph (3)(B), by inserting ‘‘75 per5 cent of’’ after ‘‘equal to or greater than’’. 

6 SEC. 307. NATIVE AMERICAN-SERVING NONTRIBAL INSTI7 TUTIONS. 

8 Section 319(c) (20 U.S.C. 1059f(c)) is amended— 

9 (1) in paragraph (1)— 

10 (A) by striking ‘‘AUTHORIZED ACTIVI11 TIES.—’’ in the subsection heading and all that 

12 follows through ‘‘Grants awarded under this 

13 section shall’’ and inserting ‘‘AUTHORIZED AC14 TIVITIES.—Grants awarded under this section 

15 shall’’; and 

16 (B) by inserting ‘‘Such activities may in17 clude the activities described in section 311(c).’’ 

18 after ‘‘serve Native Americans and low-income 

19 individuals.’’; and 

20 (2) by striking paragraph (2). 

21 SEC. 308. ASIAN AMERICAN AND NATIVE AMERICAN PA22 CIFIC ISLANDER-SERVING INSTITUTIONS. 

23 Section 320(c)(2) (20 U.S.C. 1059g(c)(2)) is amend24 ed by striking subparagraphs (A) through (N) and insert25 ing the following: 

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1 ‘‘(A) the activities described in section 

2 311(c); 

3 ‘‘(B) academic instruction in disciplines in 

4 which Asian Americans and Native American 

5 Pacific Islanders are underrepresented; 

6 ‘‘(C) conducting research and data collec7 tion for Asian American and Native American 

8 Pacific Islander populations and subpopula9 tions; and 

10 ‘‘(D) establishing partnerships with com11 munity-based organizations serving Asian 

12 Americans and Native American Pacific Island13 ers.’’. 

14 SEC. 309. NATIVE AMERICAN EDUCATION TUITION COST 

15 SHARE. 

16 Part A of title III of the Higher Education Act of 

17 1965 (20 U.S.C. 1057 et seq.) is amended by inserting 

18 after section 319 the following: 

19 ‘‘SEC. 319A. NATIVE AMERICAN EDUCATION TUITION COST 

20 SHARE. 

21 ‘‘(a) AMOUNT OF PAYMENT.— 

22 ‘‘(1) IN GENERAL.—Subject to paragraphs (2) 

23 and (3), for fiscal year 2015 and each succeeding 

24 fiscal year, the Secretary shall pay to any eligible 

25 college an amount equal to 40 percent of the total 

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1 amount of charges for tuition for such year, and the 

2 State shall pay 60 percent of such charges for such 

3 year, for all Native American Indian students who— 

4 ‘‘(A) are not residents of the State in 

5 which the college they attend is located; and 

6 ‘‘(B) are enrolled in the college for the aca7 demic year ending immediately prior to the be8 ginning of such fiscal year. 

9 ‘‘(2) ELIGIBLE COLLEGES.—For purposes of 

10 this section, an eligible college is any institution of 

11 higher education serving Native American Indian 

12 students that provides tuition-free education to such 

13 students, as mandated by Federal law, with the sup14 port of the State in which the college is located, in 

15 fulfillment of a condition under which the State or 

16 college received its original grant of land and facili17 ties from the United States. 

18 ‘‘(b) TREATMENT OF PAYMENT.—Any amounts re19 ceived by an eligible college under this section shall be 

20 treated as a reimbursement from the State in which the 

21 college is located, and shall be considered as provided in 

22 fulfillment of any Federal mandate upon the State to 

23 admit Native American Indian students free of charge of 

24 tuition. 

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1 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be construed to relieve any State from any man3 date the State may have under Federal law to reimburse 

4 a college for each academic year— 

5 ‘‘(1) with respect to Native American Indian 

6 students enrolled in the college who are not residents 

7 of the State in which the college is located, any 

8 amount of charges for tuition for such students for 

9 such academic year that exceeds the amount re10 ceived under this section for such academic year; 

11 and 

12 ‘‘(2) with respect to Native American Indian 

13 students enrolled in the college who are residents of 

14 the State in which the college is located, an amount 

15 equal to the charges for tuition for such students for 

16 such academic year. 

17 ‘‘(d) DEFINITION.—In this section, the term ‘Native 

18 American Indian student’ means an Indian pupil (as such 

19 term has been defined for purposes of Federal laws that 

20 impose a mandate upon a State or college to provide tui21 tion-free education to Native American Indian students in 

22 fulfillment of a condition under which the State or college 

23 received its original grant of land and facilities from the 

24 United States).’’. 

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1 SEC. 310. GRANTS TO INSTITUTIONS. 

2 Section 323 (20 U.S.C. 1062) is amended— 

3 (1) in subsection (a), by striking paragraphs 

4 (1) through (15) and inserting the following: 

5 ‘‘(1) The purchase, rental, or lease of edu6 cational resources. 

7 ‘‘(2) The construction, maintenance, renovation, 

8 or joint use and improvement of classrooms, librar9 ies, laboratories, or other instructional facilities, in10 cluding the integration of computer technology into 

11 institutional facilities to create smart buildings. 

12 ‘‘(3) Support of faculty exchanges, faculty de13 velopment, and faculty fellowships to assist members 

14 of the faculty in attaining advanced degrees in their 

15 field of instruction. 

16 ‘‘(4) Student academic and support services, in17 cluding supporting distance education (including 

18 through the purchase or rental of telecommuni19 cations technology equipment or services), the devel20 opment and improvement of academic programs and 

21 curricula, tutoring, counseling, school-sanctioned 

22 travel, and financial literacy for students and fami23 lies. 

24 ‘‘(5) Improving funds management, administra25 tive management, and the acquisition of technology, 

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1 services and equipment for use in strengthening 

2 funds and administrative management. 

3 ‘‘(6) Maintaining financial stability through es4 tablishing or developing a contributions development 

5 office or endowment fund. 

6 ‘‘(7) Initiatives to improve the educational out7 comes of African-American males. 

8 ‘‘(8) Other activities proposed in the application 

9 submitted pursuant to section 325 that— 

10 ‘‘(A) contribute to carrying out the pur11 poses of the program assisted under this sec12 tion; and 

13 ‘‘(B) are approved by the Secretary as part 

14 of the review and acceptance of such applica15 tion.’’; and 

16 (2) in subsection (b)— 

17 (A) in paragraph (2), by inserting ‘‘75 per18 cent of’’ after ‘‘equal to or greater than’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(4) SCHOLARSHIP.—An institution that uses 

21 grant funds provided under this part to establish or 

22 increase an endowment fund may use the interest 

23 proceeds from such endowment to provide scholar24 ships to students for the purposes of attending such 

25 institution.’’. 

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1 SEC. 311. ALLOTMENTS TO INSTITUTIONS. 

2 Section 324(c) (20 U.S.C. 1063(c)) is amended by 

3 striking ‘‘5 years’’ and inserting ‘‘6 years’’. 

4 SEC. 312. PROFESSIONAL OR GRADUATE INSTITUTIONS. 

5 Section 326 (20 U.S.C. 1063b) is amended by strik6 ing subsection (c) and inserting the following: 

7 ‘‘(c) USES OF FUNDS.— 

8 ‘‘(1) IN GENERAL.—A grant under this section 

9 may be used for 1 or more of the following activities: 

10 ‘‘(A) The purchase, rental, or lease of edu11 cational resources. 

12 ‘‘(B) The construction, maintenance, ren13 ovation, or joint use and improvement of class14 rooms, libraries, laboratories, or other instruc15 tional facilities, including the integration of 

16 computer technology into institutional facilities 

17 to create smart buildings. 

18 ‘‘(C) Support of faculty exchanges, faculty 

19 development, and faculty fellowships to assist 

20 members of the faculty in attaining advanced 

21 degrees in their field of instruction. 

22 ‘‘(D) Student academic support services, 

23 including supporting distance education (includ24 ing through the purchase or rental of tele25 communications technology equipment or serv26 ices), the development and improvement of acamstockstill on DSK4VPTVN1PROD with BILLS

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1 demic programs, tutoring, counseling, school2 sanctioned travel, distance education, and fi3 nancial literacy for students and families. 

4 ‘‘(E) Improving funds management, ad5 ministrative management, and the acquisition 

6 of technology, services, and equipment for use 

7 in strengthening funds and administrative man8 agement. 

9 ‘‘(F) Maintaining financial stability 

10 through establishing or developing a contribu11 tions development office or endowment fund. 

12 ‘‘(G) Other activities proposed in the appli13 cations submitted pursuant to subsection (d) 

14 and section 391 that— 

15 ‘‘(i) contribute to carrying out the 

16 purposes of the program assisted under 

17 this section; and 

18 ‘‘(ii) are approved by the Secretary as 

19 part of the review and acceptance of such 

20 application.’’. 

21 SEC. 313. APPLICATIONS FOR ASSISTANCE. 

22 Section 391(b) (20 U.S.C. 1068(b)) is amended— 

23 (1) by redesignating paragraphs (6) through 

24 (8) as paragraphs (7) through (9); and 

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1 (2) by inserting after paragraph (5), the fol2 lowing: 

3 ‘‘(6) provide an assurance that the institution 

4 will report to the Secretary on— 

5 ‘‘(A) the number and percentage of under6 graduate students who upon entry into the in7 stitution matriculate into a major field of study 

8 or other program leading to a postsecondary 

9 certificate, an associate’s degree, or a bacca10 laureate degree; 

11 ‘‘(B) student persistence data for the insti12 tution’s undergraduates, demonstrating the 

13 number and percentage of students who are 

14 continuously enrolled in the institution, which 

15 shall be measured in a manner proposed by the 

16 institution and approved by the Secretary; and 

17 ‘‘(C) data on the number and percentage 

18 of undergraduate students making satisfactory 

19 progress, as defined in accordance with section 

20 484(c).’’. 

21 SEC. 314. LIMITATIONS ON FEDERAL INSURANCE FOR 

22 BONDS ISSUED BY THE DESIGNATED BOND23 ING AUTHORITY. 

24 Section 344(a) (20 U.S.C. 1066c(a)) is amended— 

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1 (1) in the matter preceding paragraph (1), by 

2 striking ‘‘$1,100,000,000’’ and inserting 

3 ‘‘$3,000,000,000’’; 

4 (2) in paragraph (1), by striking 

5 ‘‘$733,333,333’’ and inserting ‘‘$2,088,000,000’’; 

6 and 

7 (3) in paragraph (2), by striking 

8 ‘‘$366,666,667’’ and inserting ‘‘$912,000,000’’. 

9 SEC. 315. AUTHORIZATION OF APPROPRIATIONS. 

10 Section 399(a) (20 U.S.C. 1068h(a)) is amended— 

11 (1) in paragraph (1)— 

12 (A) in subparagraph (A), by striking 

13 ‘‘$135,000,000 for fiscal year 2009’’ and in14 serting ‘‘such sums as may be necessary for fis15 cal year 2015’’; 

16 (B) in subparagraph (B), by striking 

17 ‘‘$30,000,000 for fiscal year 2009’’ and insert18 ing ‘‘such sums as may be necessary for fiscal 

19 year 2015’’; 

20 (C) in subparagraph (C), by striking 

21 ‘‘$15,000,000 for fiscal year 2009’’ and insert22 ing ‘‘such sums as may be necessary for fiscal 

23 year 2015’’; 

24 (D) in subparagraph (D), by striking 

25 ‘‘$75,000,000 for fiscal year 2009’’ and insertmstockstill on DSK4VPTVN1PROD with BILLS

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1 ing ‘‘such sums as may be necessary for fiscal 

2 year 2015’’; 

3 (E) in subparagraph (E), by striking 

4 ‘‘$25,000,000 for fiscal year 2009’’ and insert5 ing ‘‘such sums as may be necessary for fiscal 

6 year 2015’’; and 

7 (F) in subparagraph (F), by striking 

8 ‘‘$30,000,000 for fiscal year 2009’’ and insert9 ing ‘‘such sums as may be necessary for fiscal 

10 year 2015’’; 

11 (2) in paragraph (2)— 

12 (A) in subparagraph (A), by striking 

13 ‘‘$375,000,000 for fiscal year 2009’’ and in14 serting ‘‘such sums as may be necessary for fis15 cal year 2015’’; and 

16 (B) in subparagraph (B), by striking 

17 ‘‘$125,000,000 for fiscal year 2009’’ and in18 serting ‘‘such sums as may be necessary for fis19 cal year 2015’’; 

20 (3) in paragraph (3), by striking ‘‘$10,000,000 

21 for fiscal year 2009’’ and inserting ‘‘such sums as 

22 may be necessary for fiscal year 2015’’; 

23 (4) in paragraph (4)— 

24 (A) in subparagraph (A), by striking 

25 ‘‘$185,000 for fiscal year 2009’’ and inserting 

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1 ‘‘such sums as may be necessary for fiscal year 

2 2015’’; and 

3 (B) in subparagraph (B), by striking ‘‘fis4 cal year 2009’’ and inserting ‘‘fiscal year 

5 2015’’; and 

6 (5) in paragraph (5)— 

7 (A) in subparagraph (A), by striking 

8 ‘‘$12,000 for fiscal year 2009’’ and inserting 

9 ‘‘such sums as may be necessary for fiscal year 

10 2015’’; and 

11 (B) in subparagraph (B), by striking ‘‘fis12 cal year 2009’’ and inserting ‘‘fiscal year 

13 2015’’. 

14 TITLE IV—STUDENT ASSISTANCE 

15 PART A—GRANTS TO STUDENTS 

16 Subpart 1—Federal Pell Grants 

17 SEC. 401. YEAR-ROUND FEDERAL PELL GRANTS; EXTEN18 SION OF FEDERAL PELL GRANT INFLATION 

19 ADJUSTMENTS. 

20 Section 401 (20 U.S.C. 1070a) is amended— 

21 (1) in subsection (a)(1), by striking ‘‘through 

22 fiscal year 2017’’ and inserting ‘‘through fiscal year 

23 2020’’; 

24 (2) in subsection (b)— 

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1 (A) in paragraph (2)(A)(ii), by striking 

2 ‘‘paragraph (7)(B)’’ and inserting ‘‘paragraph 

3 (9)(B)’’; 

4 (B) by redesignating paragraphs (5) 

5 through (7) as paragraphs (7) through (9), re6 spectively; 

7 (C) by inserting after paragraph (4) the 

8 following: 

9 ‘‘(5)(A) The purpose of this paragraph is to establish 

10 a year-round Federal Pell Grant program to allow eligible 

11 students to accelerate the time needed to earn a degree. 

12 ‘‘(B) In this paragraph, the term ‘eligible student’ 

13 means a student who— 

14 ‘‘(i) has received a Federal Pell Grant for an 

15 award year and is enrolled in a program of study for 

16 1 or more additional payment periods during the 

17 same award year that are not otherwise covered by 

18 the student’s Federal Pell Grant; 

19 ‘‘(ii) continues to meets all eligibility require20 ments to receive a Federal Pell Grant under this 

21 section; and 

22 ‘‘(iii) attends an institution of higher education 

23 on not less than a half-time basis. 

24 ‘‘(C) Notwithstanding any other provision of this sub25 section, the Secretary shall award an additional Federal 

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1 Pell Grant to an eligible student for the additional pay2 ment periods during an award year that are not otherwise 

3 covered by the student’s Federal Pell Grant for the award 

4 year. 

5 ‘‘(D) In the case of a student receiving more than 

6 one Federal Pell Grant in a single award year under sub7 paragraph (C), the total amount of the Federal Pell 

8 Grants awarded to such student for the award year shall 

9 not exceed an amount equal to 150 percent of the total 

10 maximum Federal Pell Grant for such award year cal11 culated in accordance with paragraph (9)(C)(iv)(II). 

12 ‘‘(E) Any period of study covered by a Federal Pell 

13 Grant awarded under subparagraph (C) shall be included 

14 in determining a student’s duration limit under subsection 

15 (c)(5). 

16 ‘‘(6) In any case where an eligible student is receiving 

17 a Federal Pell Grant for a payment period that spans 2 

18 award years, the Secretary shall allow the eligible institu19 tion in which the student is enrolled to determine the 

20 award year to which the additional period shall be as21 signed.’’; and 

22 (D) in paragraph (9)(C), as redesignated 

23 by subparagraph (B)— 

24 (i) in clause (ii)— 

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1 (I) in the clause heading, by 

2 striking ‘‘2017–2018’’ and inserting 

3 ‘‘2020–2021’’; and 

4 (II) in the matter preceding sub5 clause (I), by striking ‘‘2017–2018’’ 

6 and inserting ‘‘2020–2021’’; and 

7 (ii) in clause (iii)— 

8 (I) by striking ‘‘2018–2019’’ and 

9 inserting ‘‘2021–2022’’; and 

10 (II) by striking ‘‘2017–2018’’ 

11 and inserting ‘‘2020–2021’’; and 

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

13 ‘‘(k) NOTIFICATION OF PELL GRANT ELIGIBILITY.— 

14 ‘‘(1) IN GENERAL.—Each eligible institution 

15 shall notify each student enrolled in the institution 

16 who is receiving a Federal Pell Grant of the stu17 dent’s remaining period of eligibility for a Federal 

18 Pell Grant in accordance with subsection (c)(5), at 

19 the times required under paragraph (2) and (3). 

20 ‘‘(2) FREQUENCY OF NOTIFICATIONS.—An eli21 gible institution shall provide the notification de22 scribed in paragraph (1) to a student receiving a 

23 Federal Pell Grant— 

24 ‘‘(A) not less than once a year while the 

25 student is enrolled in the institution; and 

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1 ‘‘(B) in the case of a student with 2 years, 

2 or less, of Federal Pell Grant eligibility remain3 ing, not less than once a semester (or its equiv4 alent) while the student is enrolled in the insti5 tution. 

6 ‘‘(3) PELL GRANT RECIPIENTS WHO ARE BOR7 ROWERS.—In the case of a student who is receiving 

8 a Federal Pell Grant who is also a borrower of a 

9 loan made, insured, or guaranteed under part B 

10 (other than a loan made pursuant to section 428C 

11 or a loan made on behalf of a student pursuant to 

12 section 428B) or made under part D (other than a 

13 Federal Direct Consolidation Loan or a Federal Di14 rect PLUS loan made on behalf of a student), the 

15 requirement described in paragraph (1) shall be car16 ried out in accordance with the notification and 

17 counseling requirements described in section 

18 485(n).’’. 

19 SEC. 401A. COLLEGE OPPORTUNITY AND GRADUATION 

20 BONUS DEMONSTRATION PROGRAM. 

21 Subpart 1 of part A of title IV (20 U.S.C. 1070a 

22 et seq.) is amended by adding at the end the following: 

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1 ‘‘SEC. 401B. COLLEGE OPPORTUNITY AND GRADUATION 

2 BONUS DEMONSTRATION PROGRAM. 

3 ‘‘(a) DEMONSTRATION PROGRAM AUTHORITY.—The 

4 Secretary is authorized to establish a demonstration pro5 gram— 

6 ‘‘(1) to reward eligible institutions of higher 

7 education that enroll and graduate a significant 

8 number of low- and moderate-income students on 

9 time; and 

10 ‘‘(2) to encourage institutions of higher edu11 cation to improve their performance in enrolling and 

12 graduating a significant number of low- and mod13 erate-income students on time. 

14 ‘‘(b) GRANTS.—The Secretary shall carry out the 

15 demonstration program described in paragraph (1) by 

16 awarding grants to eligible institutions of higher education 

17 in not more than 5 eligible States selected in accordance 

18 with subsection (c) that the Secretary determines have a 

19 strong record of supporting, reforming, and improving the 

20 performance of the State’s public higher education sys21 tems in order to make college more affordable and in22 crease college access and success, especially for low-income 

23 students. 

24 ‘‘(c) ELIGIBLE STATES.—The Secretary shall select 

25 eligible States based on the extent to which a State has— 

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1 ‘‘(1) invested, and continues to invest, signifi2 cantly in public higher education, resulting in a 

3 lower net price for low-income students, as compared 

4 to the net price for such students in other States; 

5 ‘‘(2) adopted policy reforms to ensure seamless 

6 transitions into higher education and among public 

7 institutions of higher education, such as dual enroll8 ment and guaranteed credit transfers; 

9 ‘‘(3) allocated State financial aid primarily on 

10 the basis of need, and 

11 ‘‘(4) met other criteria, as determined by the 

12 Secretary. 

13 ‘‘(d) INSTITUTIONAL ELIGIBILITY.—The Secretary 

14 shall establish criteria for the eligibility of institutions that 

15 are located in eligible States on the basis of— 

16 ‘‘(1) the percentage of the institution’s grad17 uating class that is comprised of Pell Grant recipi18 ents; 

19 ‘‘(2) the institution’s graduation rate; 

20 ‘‘(3) the institution’s average net price; and 

21 ‘‘(4) other criteria, as determined by the Sec22 retary. 

23 ‘‘(e) USES OF FUNDS.—Each eligible institution of 

24 higher education that receives a grant under this section 

25 shall use the grant funds to support reforms to further 

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1 increase college access and success for low- and moderate2 income students, by making key investments and adopting 

3 best practices, such as— 

4 ‘‘(1) awarding additional need-based financial 

5 aid; 

6 ‘‘(2) enhancing academic and student support 

7 services; 

8 ‘‘(3) improving student learning and other out9 comes while reducing costs; 

10 ‘‘(4) using technology to scale and enhance im11 provements; and 

12 ‘‘(5) establishing or expanding accelerated 

13 learning opportunities. 

14 ‘‘(f) AMOUNT OF GRANT FUNDS.— 

15 ‘‘(1) IN GENERAL.—Each eligible institution of 

16 higher education that receives a grant under this 

17 section shall receive annual grant funds in an 

18 amount equal to— 

19 ‘‘(A) the number of Pell Grant recipients 

20 who graduate from the institution on time (de21 fined as an amount of time equal to or less 

22 than 100 percent of program length based on 

23 full-time enrollment status) in the previous aca24 demic year; multiplied by 

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1 ‘‘(B) a per-student base amount, which 

2 shall be determined by the Secretary and shall 

3 be based on the type of institution receiving the 

4 grant (such as whether the institution provides 

5 a 2-year program or a 4-year program). 

6 ‘‘(2) ADDITIONAL PER-STUDENT FUNDS.—In 

7 addition to the amount of grant funds awarded 

8 under paragraph (1), the Secretary shall award eligi9 ble institutions that graduate a number of Pell 

10 Grant recipients in excess of a certain threshold 

11 number established by the Secretary, a per-student 

12 bonus amount (in excess of the per student base 

13 amount described in paragraph (1)(B)) for each ad14 ditional Pell Grant recipient who graduates from the 

15 institution that is in excess of that threshold. 

16 ‘‘(g) SUPPLEMENT NOT SUPPLANT.—Funds made 

17 available under this section shall be used to supplement, 

18 and not supplant— 

19 ‘‘(1) other State funds that eligible States 

20 would otherwise expend to carry out activities under 

21 this section to improve college affordability and 

22 graduate additional low-income and moderate-income 

23 students; and 

24 ‘‘(2) other institutional funds that eligible insti25 tutions receiving a grant under this section would 

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1 otherwise expend to carry out activities under this 

2 section to improve college affordability and graduate 

3 additional low-income and moderate-income stu4 dents. 

5 ‘‘(h) EVALUATION.—Not later than 3 years after the 

6 enactment of this section, the Secretary shall prepare and 

7 submit to Congress a report that contains an evaluation 

8 of the effectiveness of the pilot program under this section 

9 in improving college access and success for low-income and 

10 moderate-income students. 

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

12 are authorized to be appropriated to carry out this section 

13 such sums as may be necessary for fiscal year 2015 and 

14 each of the five succeeding fiscal years.’’. 

15 Subpart 2—Early Awareness of College Financing 

16 Options 

17 SEC. 403. FEDERAL TRIO PROGRAMS AUTHORIZATION. 

18 Section 402A(g) (20 U.S.C. 1070a–11(g)) is amend19 ed by striking ‘‘$900,000,000’’ and all that follows 

20 through ‘‘years.’’ and inserting ‘‘such sums as may be nec21 essary for fiscal year 2015 and each of the five succeeding 

22 fiscal years.’’. 

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1 SEC. 404. POSTBACCALAUREATE ACHIEVEMENT PROGRAM 

2 AUTHORIZATION. 

3 Section 402E(g) (20 U.S.C. 1070a–15(g)) is amend4 ed by striking ‘‘each of the fiscal years 2009 through 

5 2014’’ and inserting ‘‘fiscal year 2015 and each of the 

6 five succeeding fiscal years’’. 

7 SEC. 405. GAINING EARLY AWARENESS AND READINESS 

8 FOR UNDERGRADUATE PROGRAMS AUTHOR9 IZATION. 

10 Section 404H (20 U.S.C. 1070a–28) is amended by 

11 striking ‘‘$400,000,000’’ and all that follows through the 

12 period at the end and inserting ‘‘such sums as may be 

13 necessary for fiscal year 2015 and each of the five suc14 ceeding fiscal years’’. 

15 SEC. 405A. EARLY AWARENESS OF COLLEGE FINANCING 

16 OPTIONS. 

17 Subpart 2 of part A of title IV (20 U.S.C. 1070a– 

18 11 et seq.) is amended by adding at the end the following: 

19 ‘‘CHAPTER 3—EARLY AWARENESS OF 

20 COLLEGE FINANCING OPTIONS 

21 ‘‘SEC. 405A. EARLY AWARENESS OF COLLEGE FINANCING 

22 OPTIONS. 

23 ‘‘(a) PURPOSE.—The purpose of this section is to es24 tablish a demonstration program that explores the effec25 tiveness of early notification of postsecondary financial aid 

26 options and the cost of postsecondary education. 

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1 ‘‘(b) GRANTS AUTHORIZED; DURATION.— 

2 ‘‘(1) GRANTS AUTHORIZED.—From amounts 

3 appropriated under subsection (l) and not reserved 

4 under paragraph (3), and beginning after the first 

5 postsecondary education information form described 

6 in subsection (h) has been developed, the Secretary 

7 is authorized to award grants to 15 State edu8 cational agencies to enable such agencies to pay the 

9 expenses, including the expenses of local educational 

10 agencies in the State, for providing information in a 

11 cost-effective way to students in grades 8 through 

12 12 in order to— 

13 ‘‘(A) increase student awareness of, and 

14 access to, postsecondary education; and 

15 ‘‘(B) increase the likelihood that those stu16 dents will apply for postsecondary financial aid 

17 and attend an institution of higher education. 

18 ‘‘(2) DURATION.—A grant awarded under this 

19 section shall be awarded for a 3-year period. 

20 ‘‘(3) RESERVATION OF FUNDS.—From amounts 

21 made available to carry out this section for a fiscal 

22 year, the Secretary may reserve not more than 1 

23 percent to award a grant to the Bureau of Indian 

24 Education, to enable the Bureau to carry out the 

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1 purposes of this section with respect to schools oper2 ated or funded by the Bureau. 

3 ‘‘(c) STATE EDUCATIONAL AGENCY APPLICA4 TIONS.— 

5 ‘‘(1) IN GENERAL.—Each State educational 

6 agency desiring to participate in the demonstration 

7 program under this section shall submit an applica8 tion to the Secretary at such time and in such man9 ner as the Secretary may require. 

10 ‘‘(2) CONTENTS.—Each application described in 

11 paragraph (1) shall include— 

12 ‘‘(A) a commitment to utilize the postsec13 ondary education information form described in 

14 subsection (h) (referred to in this section as the 

15 ‘information form’), including the provision of 

16 State-specific grant aid information, as de17 scribed in subsection (h)(1)(G); 

18 ‘‘(B) a description of how the State edu19 cational agency plans to disseminate the infor20 mation form to every school serving grades 8 

21 through 12 in the State; 

22 ‘‘(C) an assurance that the State edu23 cational agency will fully cooperate with the on24 going evaluation of the demonstration program; 

25 and 

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1 ‘‘(D) such other information as the Sec2 retary may require. 

3 ‘‘(d) SELECTION CONSIDERATIONS.—In selecting 

4 State educational agencies to participate in the dem5 onstration program under this section, the Secretary shall 

6 consider— 

7 ‘‘(1) the number and quality of State edu8 cational agency applications received; 

9 ‘‘(2) the geographic diversity of applicants; and 

10 ‘‘(3) a State educational agency’s— 

11 ‘‘(A) financial responsibility; 

12 ‘‘(B) administrative capability; and 

13 ‘‘(C) ability to ensure that the activities 

14 carried out under the demonstration program 

15 serve all students in grades 8 through 12 in the 

16 State. 

17 ‘‘(e) SELECTION PRIORITY.—In selecting State edu18 cational agencies to participate in the demonstration pro19 gram under this section, the Secretary shall give priority 

20 to those States that have a high percentage of students 

21 who are eligible for free and reduced priced lunches under 

22 the Richard B. Russell National School Lunch Act (42 

23 U.S.C. 1751 et seq.) or who are, or come from families 

24 that are, eligible for benefits under another means-tested 

25 Federal benefit program as defined in section 479(d)(2). 

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1 ‘‘(f) ACTIVITIES.—Each State educational agency re2 ceiving a grant under this section shall carry out the fol3 lowing activities: 

4 ‘‘(1) Make the information form available to 

5 every school in the State that serves students in 

6 grades 8 through 12 so that such schools can dis7 tribute the form to each student in grades 8 through 

8 12, not less than once each school year, utilizing the 

9 most useful, effective, and relevant modes of commu10 nication, including through technology. 

11 ‘‘(2) Develop a statewide public awareness cam12 paign, using a variety of media, to inform students 

13 about the cost of postsecondary education and the 

14 availability of financial aid. 

15 ‘‘(3) Ensure that local educational agencies 

16 serving students who receive the information form 

17 will participate in the evaluation of the demonstra18 tion program, and that data from such local edu19 cational agencies will be made available in accord20 ance with the requirements of section 444 of the 

21 General Education Provisions Act (20 U.S.C. 

22 1232g) (commonly known as the ‘Family Edu23 cational Rights and Privacy Act of 1974’). 

24 ‘‘(4) Conduct annual surveys of a representative 

25 sample of students who receive the information 

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1 form, both before the receipt of such form and after 

2 the receipt of such form, to determine the short-term 

3 and long-term effects of the information form, in4 cluding— 

5 ‘‘(A) such students’ knowledge about the 

6 cost of postsecondary education and financial 

7 aid options; 

8 ‘‘(B) the likelihood of such students apply9 ing for financial aid, attending an institution of 

10 higher education, and enrolling in Advanced 

11 Placement, International Baccalaureate, dual 

12 enrollment, or early college high school pro13 grams; and 

14 ‘‘(C) any other information the State edu15 cational agency determines relevant. 

16 ‘‘(g) DEVELOPMENT OF AN INITIAL FORM.— 

17 ‘‘(1) INITIAL DEVELOPMENT.—Not later than 

18 90 days after the date of enactment of the Higher 

19 Education Affordability Act, the Secretary, in con20 sultation with the heads of relevant Federal agencies 

21 and representatives of higher education mentors, ad22 missions staff from institutions of higher education, 

23 financial aid staff, student and parent focus groups 

24 (including students and parents from low-income 

25 families), consumer advocates, and secondary school 

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1 guidance counselors, shall complete the development 

2 of an initial model form of postsecondary education 

3 information (referred to in this subsection as the 

4 ‘initial form’). 

5 ‘‘(2) CONSUMER TESTING PROCESS.—The Sec6 retary shall— 

7 ‘‘(A) submit the initial form for consumer 

8 testing that is in accordance with section 483C 

9 and includes the representatives described in 

10 paragraph (1); and 

11 ‘‘(B) not later than 60 days after the con12 clusion of the consumer testing under subpara13 graph (A), use the results of the consumer test14 ing of the initial form in the development of a 

15 final information form described in subsection 

16 (h). 

17 ‘‘(h) POSTSECONDARY EDUCATION INFORMATION

18 FORM.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall de20 velop, using the best available evidence and research, 

21 an information form that the Secretary shall update 

22 annually and distribute to all State educational 

23 agencies that receive a grant under this section. The 

24 information form shall contain, at a minimum, the 

25 following information: 

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1 ‘‘(A) Information about Federal Pell 

2 Grants, including— 

3 ‘‘(i) the maximum amount of a Fed4 eral Pell Grant for the award year in 

5 which the form will be disbursed to stu6 dents, as determined under clauses (i) and 

7 (ii) of section 401(b)(2)(A), which shall be 

8 the most visually prominent figure on the 

9 information form; and 

10 ‘‘(ii) information about when, and 

11 how, a student may apply for a Federal 

12 Pell Grant. 

13 ‘‘(B) Information on— 

14 ‘‘(i) Federal student financial aid op15 tions, including a description of all avail16 able Federal grants (including Federal 

17 supplemental educational opportunity 

18 grants under subpart 3), loans (including 

19 loans under parts D and E), work study 

20 assistance under part C, and scholarships 

21 for postsecondary education; and 

22 ‘‘(ii) the application processes for such 

23 grants, loans, assistance, and scholarships. 

24 ‘‘(C) Information about Federal tax credits 

25 available for higher education expenses. 

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1 ‘‘(D) Links to the application for the Free 

2 Application for Federal Student Aid described 

3 in section 483 and Federal student aid 

4 websites. 

5 ‘‘(E) A link to the Department’s College 

6 Affordability and Transparency Center website, 

7 including a link to a webpage providing infor8 mation about net price calculators, or a suc9 cessor website with similar information. 

10 ‘‘(F) Information about fee waivers for ap11 plications for institutions of higher education 

12 that may be available to qualified students. 

13 ‘‘(G) A State-specific section, in which 

14 each State educational agency shall include in15 formation on State grants for postsecondary 

16 education. 

17 ‘‘(2) DISTRIBUTION OF FINAL FORM.—The Sec18 retary shall make the final information form de19 scribed in this subsection available to all State edu20 cational agencies that receive a grant under this sec21 tion. 

22 ‘‘(i) STATE REPORT.—Each State educational agency 

23 receiving a grant under this section shall use results from 

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1 nent information, to submit an annual report to the Sec2 retary that includes the following: 

3 ‘‘(1) A description of the delivery method by 

4 which the information form was given to students, 

5 and a measurement of the reach of such delivery 

6 method. 

7 ‘‘(2) The number of students who report being 

8 encouraged to pursue higher education by the activi9 ties carried out under the grant program. 

10 ‘‘(3) A description of the barriers to the effec11 tiveness of the grant program. 

12 ‘‘(4) An assessment of the cost-effectiveness of 

13 the grant program in improving access to higher 

14 education. 

15 ‘‘(5) An identification of outcomes related to 

16 postsecondary education attendance, including 

17 whether a student who received the information form 

18 reported being more likely, as compared to before 

19 having received such form— 

20 ‘‘(A) to enroll in Advanced Placement, 

21 International Baccalaureate, dual enrollment, or 

22 early college high school programs; 

23 ‘‘(B) in the case of a student in grade 12, 

24 to submit an application to an institution of 

25 higher education; 

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1 ‘‘(C) to take the Preliminary SAT/National 

2 Merit Scholarship Qualifying Test (PSAT/ 

3 NMSQT), SAT, or ACT; and 

4 ‘‘(D) in the case of a student in grade 12, 

5 to file a Free Application for Federal Student 

6 Aid described in section 483. 

7 ‘‘(6) The number of students who received the 

8 information form and were in grade 12 in the pre9 vious year, disaggregated by race, ethnicity, gender, 

10 status as an English language learner, status as an 

11 economically disadvantaged individual, and status as 

12 an individual with a disability (except that such 

13 disaggregation shall not be required in a case in 

14 which the results would reveal personally identifiable 

15 information about an individual student), who— 

16 ‘‘(A) enrolled in an institution of higher 

17 education; 

18 ‘‘(B) applied for Federal student financial 

19 aid; and 

20 ‘‘(C) received Federal student financial 

21 aid. 

22 ‘‘(7) A description of the impact of the grant 

23 program on the parents of students who received the 

24 information form. 

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1 ‘‘(j) EVALUATION AND DISSEMINATION OF RE2 SEARCH ON BEST PRACTICES.—The Secretary, acting 

3 through the Director of the Institute of Education 

4 Sciences, shall— 

5 ‘‘(1) develop performance measures, taking into 

6 account the elements that are included in the State 

7 report described in subsection (i), for grantees to as8 certain outcomes and progress related to the grant 

9 program; 

10 ‘‘(2) evaluate the demonstration program, using 

11 both quantitative and qualitative methods, to exam12 ine the effectiveness of delivery methods used in dis13 seminating the information form to students; and 

14 ‘‘(3) identify best practices and disseminate re15 search on best practices— 

16 ‘‘(A) to State educational agencies, local 

17 educational agencies, elementary school and sec18 ondary school guidance counselors, and other 

19 interested stakeholders; and 

20 ‘‘(B) by making such research publicly 

21 available on the website of the Institute of Edu22 cation Sciences. 

23 ‘‘(k) IMPLEMENTATION.— 

24 ‘‘(1) IN GENERAL.—The Secretary shall— 

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1 ‘‘(A) upon completion of the grant period, 

2 use the results of the evaluation described in 

3 subsection (j) to work with all State educational 

4 agencies and with local educational agencies to 

5 use the results of the evaluation described in 

6 subsection (j) to disseminate the information 

7 form described in subsection (h) to every State 

8 educational agency; and 

9 ‘‘(B) in cooperation with States, institu10 tions of higher education, organizations involved 

11 in college access and student financial aid, em12 ployers, and workforce investment boards, make 

13 special efforts to provide the information form 

14 to individuals who may qualify as independent 

15 students, as defined in section 480(d). 

16 ‘‘(2) STATE EDUCATIONAL AGENCIES.—Not 

17 later than 1 year after receiving the first informa18 tion form from the Secretary under paragraph (1), 

19 each State educational agency that receives assist20 ance under part A of title I of the Elementary and 

21 Secondary Education Act of 1965 (20 U.S.C. 6301 

22 et seq.) shall ensure that the information form is 

23 distributed to all students in grades 8 through 12 in 

24 the State. 

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1 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 such sums as may be necessary for fiscal year 2015 and 

4 each of the 2 succeeding fiscal years.’’. 

5 SEC. 405B. AWARENESS OF POSTSECONDARY EDUCATION 

6 FINANCING OPTIONS FOR ADULT LEARNERS. 

7 Subpart 2 of part A of title IV (20 U.S.C. 1070a– 

8 11 et seq.), as amended by section 405A, is further 

9 amended by adding at the end the following: 

10 ‘‘CHAPTER 4—AWARENESS OF POSTSEC11 ONDARY EDUCATION FINANCING OP12 TIONS FOR ADULT LEARNERS 

13 ‘‘SEC. 405B. AWARENESS OF POSTSECONDARY EDUCATION 

14 FINANCING OPTIONS FOR ADULT LEARNERS. 

15 ‘‘(a) PURPOSE.—The purpose of this section is to es16 tablish a demonstration program that explores the effec17 tiveness of notification processes for adult students re18 garding postsecondary financial aid options and the cost 

19 of postsecondary education. 

20 ‘‘(b) GRANTS AUTHORIZED; DURATION.— 

21 ‘‘(1) GRANTS AUTHORIZED.—From amounts 

22 appropriated under subsection (l) and beginning 

23 after the first information form described in sub24 section (h) has been developed, the Secretary is au25 thorized to award grants to 15 States to enable such 

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1 States to pay the expenses of providing information 

2 in a cost-effective way to adult students who have 

3 received a secondary school diploma or who have 

4 been out of secondary school for not less than 3 

5 years, in order to— 

6 ‘‘(A) increase adult student awareness of, 

7 and access to, postsecondary education; and 

8 ‘‘(B) increase the likelihood that adult stu9 dents will apply for postsecondary financial aid 

10 and attend an institution of higher education. 

11 ‘‘(2) DURATION.—A grant awarded under this 

12 section shall be awarded for a 3-year period. 

13 ‘‘(c) STATE APPLICATIONS.— 

14 ‘‘(1) DESIGNATION OF AGENCY.—In order for a 

15 State to apply for a grant under this part, the Gov16 ernor of the State shall designate one agency as the 

17 eligible State agency who will apply for and admin18 ister the grant. 

19 ‘‘(2) APPLICATION PROCESS.—Each State agen20 cy designated under paragraph (1) that desires to 

21 participate in the demonstration program under this 

22 section shall submit an application to the Secretary 

23 at such time and in such manner as the Secretary 

24 may require. 

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1 ‘‘(3) CONTENTS.—Each application described in 

2 paragraph (2) shall include— 

3 ‘‘(A) a commitment to utilize the postsec4 ondary education information form described in 

5 subsection (h) (referred to in this section as the 

6 ‘adult information form’), including the provi7 sion of State-specific grant aid information, as 

8 described in subsection (h)(1)(B); 

9 ‘‘(B) a description of how the State plans 

10 to disseminate the information form to— 

11 ‘‘(i) one-stop centers, as defined in 

12 section 3 of the Workforce Innovation and 

13 Opportunity Act (29 U.S.C. 3102); 

14 ‘‘(ii) offices that provide access to 

15 public benefits at the State and local lev16 els, including unemployment insurance 

17 benefits, assistance or benefits provided 

18 under the State temporary assistance for 

19 needy families program funded under part 

20 A of title IV of the Social Security Act (42 

21 U.S.C. 601 et seq.) and medical assistance 

22 provided under the State Medicaid pro23 gram established under title XIX of the 

24 Social Security Act (42 U.S.C. 1396 et 

25 seq.); 

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1 ‘‘(iii) public libraries; 

2 ‘‘(iv) 2-year degree-granting institu3 tions of higher education, including occu4 pational programs at such institutions; 

5 ‘‘(v) adult education providers, which 

6 may include 2-year degree-granting institu7 tions of higher education or local edu8 cational agencies; 

9 ‘‘(vi) local boards, as defined in sec10 tion 3 of Workforce Innovation and Oppor11 tunity Act (29 U.S.C. 3102), and commu12 nity-based programs; 

13 ‘‘(C) an assurance that the State will fully 

14 cooperate with the ongoing evaluation of the 

15 demonstration program; and 

16 ‘‘(D) such other information as the Sec17 retary may require. 

18 ‘‘(d) SELECTION CONSIDERATIONS.—In selecting 

19 States to participate in the demonstration program under 

20 this section, the Secretary shall consider— 

21 ‘‘(1) the number and quality of State applica22 tions received; 

23 ‘‘(2) the geographic diversity of applicants; 

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1 ‘‘(3)(A) the financial responsibility of the State 

2 agency designated by the State to carry out the pro3 gram; 

4 ‘‘(B) the administrative capability of such agen5 cy; and 

6 ‘‘(C) such agency’s ability to ensure that the ac7 tivities carried out under the grant program serve 

8 the maximum number of adult students in the State. 

9 ‘‘(e) SELECTION PRIORITY.—In selecting States to 

10 participate in the demonstration program under this sec11 tion, the Secretary shall give priority to those States that 

12 have a high percentage of adults who are unemployed, un13 deremployed, or eligible for benefits under a Federal 

14 means-tested program. 

15 ‘‘(f) ACTIVITIES.—Each State agency receiving a 

16 grant under this section shall carry out the following ac17 tivities: 

18 ‘‘(1) Make the information form available to 

19 every one-stop center, adult education program, pub20 lic library, office that provides access to public bene21 fits, 2-year degree-granting institution of higher edu22 cation, and community-based program in the State 

23 that serves adult students so that such entities can 

24 distribute the form to each adult student utilizing 

25 services at the entity in the most useful, effective, 

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1 and relevant modes of communication, including 

2 through technology. 

3 ‘‘(2) Develop a statewide public awareness cam4 paign, using a variety of media, to inform adult stu5 dents about the value of a postsecondary education, 

6 the availability of supports to help them balance 

7 work and school, the cost of postsecondary edu8 cation, and the availability of financial aid. 

9 ‘‘(3) Ensure that entities serving adult students 

10 who receive the information form will participate in 

11 the evaluation of the demonstration program, and 

12 that data from such entities will be made available 

13 in accordance with the requirements of section 444 

14 of the General Education Provisions Act (20 U.S.C. 

15 1232) (commonly known as the ‘Family Educational 

16 Rights and Privacy Act of 1974’). 

17 ‘‘(4) Conduct annual surveys of a representative 

18 sample of adult students who receive the information 

19 form to determine the short-term and long-term ef20 fects of the information form, including what those 

21 students know about the cost of postsecondary edu22 cation and financial aid options, the likelihood of 

23 such students applying for financial aid, and attend24 ing an institution of higher education, and any other 

25 information the State agency determines relevant— 

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1 ‘‘(A) before the receipt of such form; and 

2 ‘‘(B) after the receipt of such form. 

3 ‘‘(g) DEVELOPMENT OF AN INITIAL FORM.— 

4 ‘‘(1) INITIAL DEVELOPMENT.—Not later than 

5 90 days after the date of enactment of this Act, the 

6 Secretary, in consultation with the heads of relevant 

7 Federal agencies and representatives of college ad8 missions staff, financial aid staff, adult student 

9 focus groups (including students from low-income 

10 families), consumer advocates, and adult education 

11 program directors, shall complete the development of 

12 an initial model form of postsecondary education in13 formation (referred to in this subsection as the ‘ini14 tial form’). 

15 ‘‘(2) CONSUMER TESTING PROCESS.—The Sec16 retary shall— 

17 ‘‘(A) submit the initial form for consumer 

18 testing in accordance with section 483C that in19 cludes the representatives described in para20 graph (1); and 

21 ‘‘(B) not later than 60 days after the con22 clusion of the consumer testing under subpara23 graph (A), use the results of the consumer test24 ing of the initial form in the development of a 

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1 final information form described in subsection 

2 (h). 

3 ‘‘(h) POSTSECONDARY EDUCATION INFORMATION

4 FORM.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall de6 velop, using the best available evidence and research, 

7 an information form that the Secretary shall update 

8 annually and distribute to all State agencies that re9 ceive a grant under this section. The information 

10 form shall contain, at a minimum, the following in11 formation: 

12 ‘‘(A) The information described in sub13 paragraphs (A) through (F) of section 

14 405A(h)(1). 

15 ‘‘(B) A State-specific section, in which 

16 each State shall include information on State 

17 grants for postsecondary education. 

18 ‘‘(C) Information about the— 

19 ‘‘(i) individual and societal benefits of 

20 postsecondary education; 

21 ‘‘(ii) importance of academic prepara22 tion; 

23 ‘‘(iii) array of postsecondary options 

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1 cluding availability of programs that can 

2 help adults balance work and school; and 

3 ‘‘(iv) the eligibility of the student for 

4 various Federal and State tax benefits and 

5 public benefits, such as assistance or bene6 fits provided under the State temporary 

7 assistance for needy families program 

8 funded under part A of title IV of the So9 cial Security Act (42 U.S.C. 601 et seq.) 

10 and medical assistance provided under the 

11 State Medicaid program established under 

12 title XIX of the Social Security Act (42 

13 U.S.C. 1396 et seq.). 

14 ‘‘(2) DISTRIBUTION OF FINAL FORM.—The Sec15 retary shall make the final information form de16 scribed in this subsection available to all States 

17 agencies that receive a grant under this section. 

18 ‘‘(i) STATE REPORT.—Each State agency receiving 

19 a grant under this section shall use results from the sur20 veys described in subsection (f)(4), and other pertinent in21 formation, to submit an annual report to the Secretary 

22 including the following: 

23 ‘‘(1) A description of the delivery method by 

24 which the information form was given to students, 

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1 and a measurement of the reach of such delivery 

2 method. 

3 ‘‘(2) The number of students who report being 

4 encouraged to pursue postsecondary education by 

5 the activities carried out under the grant program. 

6 ‘‘(3) A description of the barriers to the effec7 tiveness of the grant program. 

8 ‘‘(4) An assessment of the cost-effectiveness of 

9 the grant program in improving access to postsec10 ondary education. 

11 ‘‘(5) An identification of outcomes related to 

12 postsecondary education attendance, including 

13 whether a student who received the information form 

14 reported being more likely, as compared to before 

15 having received such form— 

16 ‘‘(A) to submit an application to an insti17 tution of higher education; 

18 ‘‘(B) to take the SAT or ACT; and 

19 ‘‘(C) to file a Free Application for Federal 

20 Student Aid described in section 483. 

21 ‘‘(6) The number of students who received the 

22 information form, disaggregated by race, ethnicity, 

23 gender, status as an English language learner, sta24 tus as an economically disadvantaged individual, and 

25 status as an individual with a disability, (except that 

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1 such disaggregation shall not be required in a case 

2 in which the results would reveal personally identifi3 able information about an individual student) who— 

4 ‘‘(A) enrolled in an institution of higher 

5 education; 

6 ‘‘(B) applied for Federal student financial 

7 aid; and 

8 ‘‘(C) received Federal student financial 

9 aid. 

10 ‘‘(7) A description of the impact of the grant 

11 program on the children of students who received 

12 the information form. 

13 ‘‘(j) EVALUATION AND DISSEMINATION OF RE14 SEARCH ON BEST PRACTICES.—The Secretary, acting 

15 through the Director of the Institute of Education 

16 Sciences, shall— 

17 ‘‘(1) develop performance measures, taking into 

18 account the elements that are included in the State 

19 report described in subsection (i), for grantees to as20 certain outcomes and progress related to the grant 

21 program; 

22 ‘‘(2) evaluate the demonstration program, using 

23 both quantitative and qualitative methods, to exam24 ine the effectiveness of delivery methods used in dis25 seminating the information form to students; and 

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1 ‘‘(3) identify best practices and disseminate re2 search on best practices— 

3 ‘‘(A) to States, State agencies admin4 istering a grant under this section, local edu5 cational agencies, community colleges, adult 

6 education programs, local workforce develop7 ment boards, and other interested stakeholders; 

8 and 

9 ‘‘(B) by making such research publicly 

10 available on the website of the Institute of Edu11 cation Sciences. 

12 ‘‘(k) IMPLEMENTATION.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall— 

14 ‘‘(A) upon completion of the grant period, 

15 use the results of the evaluation described in 

16 subsection (j) to work with all States to use the 

17 results of the evaluation described in subsection 

18 (j) to disseminate the information form to the 

19 most appropriate agency in each State; and 

20 ‘‘(B) in cooperation with States, institu21 tions of higher education, organizations involved 

22 in postsecondary education access and student 

23 financial aid, employers, and workforce develop24 ment boards, make special efforts to provide the 

25 information form to individuals who may qualmstockstill on DSK4VPTVN1PROD with BILLS

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1 ify as independent students, as defined in sec2 tion 480(d). 

3 ‘‘(2) STATE AGENCIES.—Not later than 1 year 

4 after receiving the first information form from the 

5 Secretary under paragraph (1), each State that re6 ceives assistance under this Act shall ensure that the 

7 State agency receiving the information form under 

8 paragraph (1)(A) distributes the information form to 

9 all adult students, to the maximum extent prac10 ticable. 

11 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this section 

13 such sums as may be necessary for fiscal year 2015 and 

14 each of the following 2 fiscal years.’’. 

15 Subpart 3—Federal Supplemental Education 

16 Opportunity Grants 

17 SEC. 407. AUTHORIZATION OF APPROPRIATIONS. 

18 Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is 

19 amended by striking ‘‘2009’’ and inserting ‘‘2015’’. 

20 SEC. 408. INSTITUTIONAL SHARE OF FEDERAL SUPPLE21 MENTAL EDUCATIONAL OPPORTUNITY 

22 GRANTS. 

23 Section 413C(a)(2) (20 U.S.C. 1070b–2(a)(2)) is 

24 amended by striking ‘‘75 percent’’ and inserting ‘‘50 per25 cent’’. 

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1 SEC. 409. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR2 TUNITY GRANTS ALLOCATION OF FUNDS. 

3 Section 413D (20 U.S.C. 1070b–3) is amended— 

4 (1) by striking subsection (a) and inserting the 

5 following: 

6 ‘‘(a) ALLOCATION BASED ON PREVIOUS ALLOCA7 TION.— 

8 ‘‘(1) IN GENERAL.—From the amount appro9 priated pursuant to section 413A(b), for each fiscal 

10 year, the Secretary shall allocate to each eligible in11 stitution an amount equal to not less than 90 per12 cent and not more than 110 percent of the amount 

13 that the eligible institution received under this sub14 section and subsection (b) (as such subsections were 

15 in effect with respect to allocations for such fiscal 

16 year) for the previous fiscal year for which that in17 stitution received funds under this section. 

18 ‘‘(2) RATABLE REDUCTION.—If the amount ap19 propriated for any fiscal year is less than the 

20 amount required to be allocated to all institutions 

21 under paragraph (1), then the amount of the alloca22 tion to each such institution shall be ratably re23 duced. 

24 ‘‘(3) NO PREVIOUS ALLOCATION.—In the case 

25 of an institution that has not received a previous al26 location under this section, the Secretary shall allomstockstill on DSK4VPTVN1PROD with BILLS

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1 cate funds under this section solely on the basis of 

2 the need determination described under subsection 

3 (c).’’; and 

4 (2) in subsection (c)— 

5 (A) in paragraph (2), by striking ‘‘To de6 termine the need of an institution’s eligible un7 dergraduate students,’’ and inserting ‘‘Until 

8 such time as the Secretary establishes a revised 

9 method to determine the need of an institu10 tion’s eligible undergraduate students, in ac11 cordance with paragraph (5),’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(5) Not later than 1 year after the date of en14 actment of the Higher Education Affordability Act, 

15 the Secretary shall establish a revised method for 

16 determining the need of an institution’s eligible un17 dergraduate students, as described in paragraph (2), 

18 which shall take into account the number of low19 and moderate-income students that an eligible insti20 tution serves. The Secretary shall promulgate any 

21 regulations necessary to carry out the revised meth22 ods of determining an eligible institution’s need 

23 under this subsection.’’. 

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1 Subpart 4—American Dream Grants and LEAP 

2 Program 

3 SEC. 415. PURPOSE; APPROPRIATIONS AUTHORIZED. 

4 Section 415A (20 U.S.C. 1070c) is amended— 

5 (1) in subsection (a), in the matter preceding 

6 paragraph (1) of subsection (a), by inserting ‘‘to 

7 award American dream grants under section 415G 

8 and’’ before ‘‘to make’’; and 

9 (2) in subsection (b)— 

10 (A) in paragraph (1), by striking ‘‘sub11 part’’ and all that follows through the period at 

12 the end and inserting ‘‘subpart (except for sec13 tion 415F) such sums as may be necessary for 

14 fiscal year 2015 and each of the five succeeding 

15 fiscal years.’’; and 

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

17 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS FOR

18 AMERICAN DREAM GRANTS.—There are authorized 

19 to be appropriated to carry out section 415F such 

20 sums as may be necessary for fiscal year 2015 and 

21 each of the five succeeding fiscal years.’’. 

22 SEC. 416. AMERICAN DREAM GRANTS. 

23 Subpart 4 of part A of title IV (20 U.S.C. 1070c et 

24 seq.) is amended— 

25 (1) by redesignating section 415F as section 

26 415G; and 

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1 (2) by adding at the end the following: 

2 ‘‘SEC. 415F. AMERICAN DREAM GRANTS. 

3 ‘‘(a) DREAMER STUDENTS.— 

4 ‘‘(1) IN GENERAL.—In this section, the term 

5 ‘Dreamer student’ means an individual who— 

6 ‘‘(A) was younger than 16 years of age on 

7 the date on which the individual initially en8 tered the United States; 

9 ‘‘(B) has provided, to the applicable State, 

10 a list of each secondary school that the student 

11 attended in the United States; and 

12 ‘‘(C)(i) has earned a high school diploma 

13 or the recognized equivalent of such diploma 

14 from a secondary school, has obtained a high 

15 school equivalency diploma in the United 

16 States, or is scheduled to complete the require17 ments for such a diploma or equivalent before 

18 the next academic year begins; 

19 ‘‘(ii) has acquired a degree from an institu20 tion of higher education or has completed not 

21 less than 2 years in a program for a bacca22 laureate degree or higher degree at an institu23 tion of higher education in the United States 

24 and has made satisfactory progress, as defined 

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1 in section 484(c), in the program of study dur2 ing such time period; or 

3 ‘‘(iii) has served in the uniformed services, 

4 as defined in section 101 of title 10, United 

5 States Code, for not less than 4 years and, if 

6 discharged, received an honorable discharge. 

7 ‘‘(2) HARDSHIP EXCEPTION.—The Secretary 

8 shall issue regulations that direct when a State shall 

9 waive the requirement of subparagraph (A) or (B), 

10 or both, of paragraph (1) for an individual to qualify 

11 as a Dreamer student under such paragraph, if the 

12 individual— 

13 ‘‘(A) demonstrates compelling cir14 cumstances for the inability to satisfy the re15 quirement of such subparagraph (A) or (B), or 

16 both; and 

17 ‘‘(B) satisfies the requirement of para18 graph (1)(C). 

19 ‘‘(b) GRANTS TO STATES.— 

20 ‘‘(1) RESERVATION FOR ADMINISTRATION.— 

21 From the amounts appropriated to carry out this 

22 section for each fiscal year, the Secretary may re23 serve not more than 1 percent of such amounts to 

24 administer this section. 

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1 ‘‘(2) GRANTS AUTHORIZED TO ELIGIBLE

2 STATES.—From the amounts appropriated to carry 

3 out this section for each fiscal year and not reserved 

4 under paragraph (1), the Secretary shall award 

5 grants, through allotments under paragraph (4), to 

6 eligible States to enable the eligible States to carry 

7 out the activities described in clauses (i) and (ii) of 

8 paragraph (3)(A). 

9 ‘‘(3) ELIGIBLE STATE.—In this section, the 

10 term ‘eligible State’ means a State that— 

11 ‘‘(A) increases access and affordability to 

12 higher education for students by— 

13 ‘‘(i) offering in-State tuition for 

14 Dreamer students; or 

15 ‘‘(ii) expanding in-State financial aid 

16 to Dreamer students; and 

17 ‘‘(B) submits an application to the Sec18 retary that contains an assurance that— 

19 ‘‘(i) notwithstanding any other provi20 sion of law, the State will not discriminate 

21 in awarding student financial assistance or 

22 determining who is eligible for in-State tui23 tion, against a Dreamer student who re24 sides in the State, if the student otherwise 

25 qualifies for the assistance or tuition; and 

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1 ‘‘(ii) for fiscal year 2015 and each of 

2 the 4 succeeding fiscal years, the State will 

3 maintain State support for public institu4 tions of higher education located in the 

5 State (not including support for capital 

6 projects, research and development, or tui7 tion and fees paid by students) at not less 

8 than the level of such support for fiscal 

9 year 2013, increased by a percentage equal 

10 to the estimated percentage increase in the 

11 Consumer Price Index (as such term is de12 fined in section 478(f)) between December 

13 2013 and the December preceding the fis14 cal year for which the determination under 

15 this clause is being made. 

16 ‘‘(4) ALLOTMENTS.—The Secretary shall allot 

17 the amount appropriated to carry out this section 

18 for each fiscal year and not reserved under para19 graph (1) among the eligible States in proportion to 

20 the number of Dreamer students enrolled at least 

21 half-time in postsecondary education who reside in 

22 the State for the most recent fiscal year for which 

23 satisfactory data are available, compared to the 

24 number of such students who reside in all eligible 

25 States for such fiscal year. 

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1 ‘‘(c) SUPPLEMENT NOT SUPPLANT.—Grant funds 

2 awarded under this section shall be used to supplement, 

3 and not supplant, non-Federal funds that would otherwise 

4 be used for activities authorized under this section. 

5 ‘‘(d) APPLICABILITY.—The provisions of sections 

6 415B through 415E shall not apply to the program au7 thorized by this section.’’. 

8 Subpart 5—Reauthorization of Appropriations for 

9 Other Part A Programs. 

10 SEC. 417. REAUTHORIZATION OF APPROPRIATIONS FOR 

11 OTHER PART A PROGRAMS. 

12 (a) SPECIAL PROGRAMS FOR STUDENTS WHOSE

13 FAMILIES ARE ENGAGED IN MIGRANT AND SEASONAL

14 FARMWORK.—Section 418A(i) (20 U.S.C. 1070d–2(i)) is 

15 amended by striking ‘‘$75,000,000’’ and all that follows 

16 through the period at the end and inserting ‘‘such sums 

17 as may be necessary for fiscal year 2015 and each of the 

18 five succeeding fiscal years.’’. 

19 (b) ROBERT C. BYRD HONORS SCHOLARSHIP PRO20 GRAM.—Section 419K (20 U.S.C. 1070d–41) is amended 

21 by striking ‘‘2009’’ and inserting ‘‘2015’’. 

22 (c) CHILD CARE ACCESS MEANS PARENTS IN

23 SCHOOL.—Section 419N(g) (20 U.S.C. 1070e(g)) is 

24 amended by striking ‘‘2009’’ and inserting ‘‘2015’’. 

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1 PART B—FEDERAL FAMILY EDUCATION LOAN 

2 PROGRAM 

3 SEC. 421. SIMPLIFICATION OF INCOME-BASED REPAYMENT 

4 OPTIONS FOR FEDERALLY INSURED STU5 DENT LOANS. 

6 (a) AMENDMENT REPLACING INCOME-SENSITIVE

7 REPLACEMENT.—Section 427(a)(2)(H) (20 U.S.C. 

8 1077(a)(2)(H)) is amended— 

9 (1) by striking ‘‘graduated or income-sensitive 

10 repayment schedule’’ and inserting ‘‘graduated re11 payment schedule or income-based repayment sched12 ule under section 493C’’; and 

13 (2) by striking ‘‘in accordance with the regula14 tions of the Secretary’’ and inserting ‘‘in accordance 

15 with section 493C and regulations issued by the Sec16 retary’’. 

17 (b) EFFECTIVE DATE RELATING TO TERMINATION

18 OF INCOME-SENSITIVE REPAYMENT.—The amendments 

19 made by subsection (a) shall take effect on the date that 

20 is 1 year after the date of enactment of this Act. 

21 SEC. 422. IMPROVEMENTS TO MILITARY LOAN DEFERMENT; 

22 CLARIFICATION OF SCRA PROTECTIONS; SIM23 PLIFICATION OF INCOME-BASED REPAYMENT 

24 OPTIONS. 

25 (a) AMENDMENTS.—Section 428 (20 U.S.C. 1078) is 

26 amended— 

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1 (1) in subsection (b)— 

2 (A) in paragraph (1)— 

3 (i) in subparagraph (D), by striking 

4 ‘‘may, following a default by the borrower, 

5 be subject to income contingent repayment 

6 in accordance with subsection (m)’’ and in7 serting ‘‘may, following a default by the 

8 borrower, be subject to income-based re9 payment in accordance with subsection (m) 

10 and section 493C(d)’’; 

11 (ii) in subparagraph (E)(i), by strik12 ing ‘‘standard, graduated’’ and all that fol13 lows and inserting ‘‘standard, graduated, 

14 income-based, or extended repayment 

15 schedule (as described in paragraph (9)), 

16 established by the lender in accordance 

17 with the regulations of the Secretary’’; and 

18 (iii) in subparagraph (M)— 

19 (I) by redesignating clause (iv) as 

20 clause (v); 

21 (II) in clause (iii), by striking 

22 ‘‘the borrower—’’ and all that follows 

23 through ‘‘described in subclause (I) or 

24 (II); or’’ and inserting ‘‘the borrower 

25 is performing eligible military service, 

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1 and for the 180-day period following 

2 the demobilization date for such eligi3 ble military service;’’; and 

4 (III) by inserting after clause 

5 (iii) the following: 

6 ‘‘(iv) not in excess of 180 days after 

7 the effective movement date listed on the 

8 military orders of a borrower’s spouse if 

9 that spouse is a member of the Armed 

10 Forces who has received military orders for 

11 a permanent change of station; or’’; and 

12 (B) in paragraph (9)(A)(iii), by inserting 

13 ‘‘and an income-sensitive repayment plan shall 

14 be available only for borrowers who have se15 lected or been required to use such a plan be16 fore the date that is 1 year after the date of en17 actment of the Higher Education Affordability 

18 Act’’ before the semicolon at the end; 

19 (2) in subsection (d), by striking ‘‘section 207 

20 of the Servicemembers Civil Relief Act (50 U.S.C. 

21 App. 527)’’ and inserting ‘‘the Servicemembers Civil 

22 Relief Act (50 U.S.C. App. 501 et seq.)’’; and 

23 (3) by striking subsection (m) and inserting the 

24 following: 

25 ‘‘(m) INCOME-BASED REPAYMENT.— 

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1 ‘‘(1) AUTHORITY OF SECRETARY TO RE2 QUIRE.—The Secretary may require borrowers who 

3 have defaulted on loans made under this part that 

4 are assigned to the Secretary under subsection 

5 (c)(8) to repay those loans under an income-based 

6 repayment plan, under terms and conditions estab7 lished by the Secretary that are the same, or similar 

8 to, the terms and conditions established under such 

9 section. 

10 ‘‘(2) LOANS FOR WHICH INCOME-BASED REPAY11 MENT MAY BE REQUIRED.—A loan made under this 

12 part may be required to be repaid under this sub13 section if the note or other evidence of the loan has 

14 been assigned to the Secretary pursuant to sub15 section (c)(8).’’. 

16 (b) RULEMAKING REGARDING TERMINATION OF IN17 COME CONTINGENT AND INCOME-SENSITIVE REPAYMENT

18 PLANS.—By not later than 1 year after the date of enact19 ment of this Act, the Secretary of Education shall promul20 gate a final rule ending all eligibility for income contingent 

21 and income-sensitive repayment plans for loans made 

22 under part B or D of title IV of the Higher Education 

23 Act of 1965 unless the borrowers have selected, and re24 mained continuously enrolled in, such payment plans be25 fore the date that is 1 year after the date of enactment 

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1 of this Act, in accordance with the amendments made by 

2 this Act. 

3 (c) EFFECTIVE DATE REGARDING INCOME CONTIN4 GENT AND INCOME-SENSITIVE REPAYMENT PLANS.—The 

5 amendments made by clauses (i) and (ii) of subparagraph 

6 (A), and subparagraph (B), of paragraph (1), and by 

7 paragraph (3), of subsection (a) shall take effect on the 

8 date that is 1 year after the date of enactment of this 

9 Act. 

10 SEC. 423. SIMPLIFICATION OF INCOME-BASED REPAYMENT 

11 OPTIONS FOR FEDERAL CONSOLIDATION 

12 LOANS. 

13 (a) AMENDMENTS.—Section 428C of such Act (20 

14 U.S.C. 1078–3) is amended— 

15 (1) by striking subclause (V) of subsection 

16 (a)(3)(B)(i) and inserting the following: 

17 ‘‘(V) an individual may obtain a subse18 quent consolidation loan under section 455(g) 

19 only— 

20 ‘‘(aa) for the purposes of obtaining in21 come-based repayment under section 493C, 

22 and only if the loan has been submitted to 

23 the guaranty agency for default aversion or 

24 if the loan is already in default; 

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1 ‘‘(bb) for the purposes of using the 

2 public service loan forgiveness program 

3 under section 455(m); or 

4 ‘‘(cc) for the purpose of using the no 

5 accrual of interest for active duty service 

6 members benefit offered under section 

7 455(o).’’; 

8 (2) in subsection (b)— 

9 (A) by striking subparagraph (E) of para10 graph (1) and inserting the following: 

11 ‘‘(E) that the lender shall— 

12 ‘‘(i) offer an income-based repayment 

13 schedule, established by the lender in ac14 cordance with section 493C and regula15 tions promulgated by the Secretary, to the 

16 borrower of any consolidation loan made 

17 by the lender on or after July 1, 1994, and 

18 before July 1, 2010; and 

19 ‘‘(ii) only in the case of any borrower 

20 who has selected, before the date that is 1 

21 year after the date of enactment of the 

22 Higher Education Affordability Act, an in23 come-sensitive repayment schedule, in ac24 cordance with regulations promulgated by 

25 the Secretary and as in effect on the day 

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1 before the date that is 1 year before such 

2 date of enactment, continue to offer such 

3 borrower the income-sensitive repayment 

4 schedule until the borrower selects an al5 ternative repayment schedule;’’; and 

6 (B) in paragraph (5), by inserting ‘‘(if 

7 such borrower has selected an income contin8 gent repayment schedule before the date that is 

9 1 year after the date of enactment of the High10 er Education Affordability Act)’’ after ‘‘income 

11 contingent repayment under part D of this 

12 title’’; and 

13 (3) in subsection (c)— 

14 (A) in the matter preceding clause (i) of 

15 paragraph (2)(A), by inserting ‘‘, except that an 

16 income-sensitive repayment schedule shall only 

17 be available to borrowers who have selected 

18 such schedule before the date that is 1 year 

19 after the date of enactment of the Higher Edu20 cation Affordability Act’’ after ‘‘regulations of 

21 the Secretary’’; and 

22 (B) in paragraph (3)(B), by inserting ‘‘for 

23 borrowers who have selected income contingent 

24 repayment before the date that is 1 year after 

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1 the date of enactment of the Higher Education 

2 Affordability Act’’ after ‘‘subsection (b)(5)’’. 

3 (b) EFFECTIVE DATE FOR TERMINATION OF IN4 COME-SENSITIVE OR INCOME CONTINGENT REPAYMENT

5 PLANS.—The amendments made by subsection (a) shall 

6 take effect on the date that is 1 year after the date of 

7 enactment of this Act. 

8 SEC. 424. REASONABLE COLLECTION COSTS AND REHABILI9 TATION PAYMENTS. 

10 Section 428F (20 U.S.C. 1078–6) is amended— 

11 (1) in subsection (a)— 

12 (A) by striking item (aa) of paragraph 

13 (1)(D)(i)(II) and inserting the following: 

14 ‘‘(aa) charge to the borrower 

15 an amount that is reasonable and 

16 that does not exceed the bona 

17 fide collection costs associated 

18 with such loan that are actually 

19 incurred in collecting the debt 

20 against the borrower, which 

21 amount shall not exceed 16 per22 cent of the outstanding principal 

23 and interest at the time of the 

24 loan sale; and’’; and 

25 (B) by striking paragraph (5); and 

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1 (2) by adding at the end the following: 

2 ‘‘(d) DETERMINATION OF REASONABLE AND AF3 FORDABLE.— 

4 ‘‘(1) IN GENERAL.—For purposes of this sec5 tion, a monthly payment shall be reasonable and af6 fordable based upon the borrower’s total financial 

7 circumstances if the payment is the equivalent of a 

8 monthly payment amount determined for a borrower 

9 under the income-based repayment plan under sec10 tion 493C, except that in no cases shall the monthly 

11 payment under this section be less than $5. 

12 ‘‘(2) APPEALS PROCESS.—The Secretary shall 

13 establish a clear and accessible process for appealing 

14 the monthly payment amount determined as reason15 able and affordable under this section in any case 

16 where a borrower believes that the borrower’s 

17 monthly payment amount is incorrect, or that the 

18 amount calculated for the borrower under paragraph 

19 (1) is based on incorrect information or is unreason20 able based on the borrower’s total circumstances.’’. 

21 SEC. 425. FFEL LOAN FORGIVENESS FOR CERTAIN AMER22 ICAN INDIAN EDUCATORS. 

23 Section 428J(c) (20 U.S.C. 1078–10(c)) is amended 

24 by adding at the end the following: 

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1 ‘‘(4) AMERICAN INDIAN TEACHERS IN LOCAL

2 EDUCATIONAL AGENCIES WITH A HIGH PERCENTAGE

3 OF AMERICAN INDIAN STUDENTS.—Notwithstanding 

4 the amount specified in paragraph (1) and the re5 quirements under subparagraphs (A) and (B) of 

6 subsection (b)(1), the aggregate amount that the 

7 Secretary shall repay under this section shall be not 

8 more than $17,500 in the case of a borrower who— 

9 ‘‘(A) has been employed as a full-time 

10 teacher for 5 consecutive complete school years 

11 in a local educational agency described in sec12 tion 7112(b) of the Elementary and Secondary 

13 Education Act of 1965 or in a school operated 

14 or funded by the Bureau of Indian Education; 

15 and 

16 ‘‘(B) is a member of an Indian tribe (as 

17 defined in section 4 of the Indian Self-Deter18 mination and Education Assistance Act (25 

19 U.S.C. 450b)).’’. 

20 SEC. 426. REAUTHORIZATION OF APPROPRIATIONS FOR 

21 CERTAIN LOAN FORGIVENESS PROGRAMS. 

22 (a) LOAN FORGIVENESS FOR SERVICE IN AREAS OF

23 NATIONAL NEEDS.—Section 428K(h) (20 U.S.C. 1078– 

24 11(h)) is amended by striking ‘‘2009’’ and inserting 

25 ‘‘2015’’. 

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1 (b) LOAN REPAYMENT FOR CIVIL LEGAL ASSIST2 ANCE ATTORNEYS.—Section 428L(i) (20 U.S.C. 1078– 

3 11(i)) is amended by striking ‘‘$10,000,000’’ and all that 

4 follows through the period at the end and inserting ‘‘such 

5 sums as may be necessary for fiscal year 2015 and each 

6 of the five succeeding fiscal years.’’. 

7 SEC. 427. IMPROVEMENTS TO CREDIT REPORTING FOR 

8 FEDERAL STUDENT LOANS. 

9 Section 430A (20 U.S.C. 1080A) is amended— 

10 (1) by redesignating subsections (d) through (f) 

11 as subsections (e) through (g), respectively; and 

12 (2) by inserting after subsection (c) the fol13 lowing: 

14 ‘‘(d) TREATMENT OF REHABILITATION AND INCOME15 BASED REPAYMENT AND INCOME CONTINGENT REPAY16 MENT PLANS.— 

17 ‘‘(1) NECESSARY STEPS.—The Secretary and 

18 each guaranty agency, eligible lender, and subse19 quent holder of a loan shall take all necessary steps 

20 to ensure that information furnished under this sec21 tion about a loan covered by Federal loan insurance 

22 pursuant to this part or covered by a guaranty 

23 agreement pursuant to section 428, or a loan made 

24 under part D, is reported in a manner that reflects 

25 the unique attributes of a Federal student loan 

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1 under this title. The necessary steps required shall 

2 include— 

3 ‘‘(A) furnishing consumer reporting agen4 cies with information about a loan’s delin5 quency, default, post-default performance, reha6 bilitation, and post-rehabilitation performance, 

7 as applicable, in a manner that ensures the en8 tire loan history is reported as a single open ac9 count for the duration of the borrower’s finan10 cial obligation; 

11 ‘‘(B) reporting a payment as paid as 

12 agreed if the payment made— 

13 ‘‘(i) satisfies the terms of the bor14 rower’s income-based repayment plan 

15 under section 493C or any income contin16 gent repayment plan authorized under sec17 tion 455(e); or 

18 ‘‘(ii) is a reasonable and affordable 

19 payment made by a borrower subject to 

20 section 428F that meet the requirements 

21 of such section; and 

22 ‘‘(C) for purposes of payments under an 

23 income-based repayment plan under section 

24 493C or any income contingent repayment plan 

25 authorized under section 455(e), any additional 

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1 steps that the Secretary determines necessary, 

2 through rulemaking or published guidance, 

3 based on the results of the study performed 

4 under section 1018 of the Higher Education Af5 fordability Act. 

6 ‘‘(2) APPLICATION TO AGENTS AND CONTRAC7 TORS.—The requirements of paragraph (1) shall 

8 apply to any person furnishing information about 

9 loan performance on behalf of the Secretary, a guar10 anty agency, eligible lender, or subsequent holder of 

11 a loan, including third party student loan servicers 

12 or collectors.’’. 

13 SEC. 428. REDUCED DUPLICATION IN STUDENT LOAN SERV14 ICING. 

15 Section 432(l)(4) (20 U.S.C. 1082(l)(4)) is amended 

16 by striking ‘‘simplifying and standardizing’’ and inserting 

17 ‘‘simplifying, standardizing, and reducing duplication in’’. 

18 SEC. 429. IMPROVED DETERMINATION OF COHORT DE19 FAULT RATES; PUBLICATION OF DEFAULT 

20 PREVENTION PLAN. 

21 Section 435 (20 U.S.C. 1085) is amended— 

22 (1) in subsection (a)— 

23 (A) in paragraph (2), by adding at the end 

24 the following: 

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1 ‘‘(E) In any case where the Secretary has de2 termined that the institution has engaged in default 

3 manipulation, the Secretary— 

4 ‘‘(i) shall recalculate the cohort default 

5 rate for the institution under this section using 

6 corrected data and information, for all fiscal 

7 years for which the default manipulation has 

8 occurred; and 

9 ‘‘(ii) using the recalculated cohort default 

10 rate, shall redetermine under subsection (a)(2) 

11 whether the institution is ineligible to partici12 pate in a program under this title.’’; and 

13 (B) in paragraph (7)(A), by adding at the 

14 end the following: 

15 ‘‘(iii) SUMMARY OF DEFAULT PRE16 VENTION PLAN.—Upon receiving technical 

17 assistance from the Secretary under clause 

18 (ii), each institution subject to this sub19 paragraph shall— 

20 ‘‘(I) prepare a summary of the 

21 plan described under clause (i) that is 

22 directed to a student audience; 

23 ‘‘(II) make the summary publicly 

24 available; and 

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1 ‘‘(III) provide the summary to 

2 students at the institution.’’; and 

3 (2) in subsection (m)(3), by striking ‘‘through 

4 the use of’’ and all that follows through the period 

5 at the end and inserting ‘‘through default manipula6 tion.’’. 

7 SEC. 430. IMPROVED DISABILITY DETERMINATIONS. 

8 (a) IN GENERAL.—Section 437(a) (20 U.S.C. 

9 1087(a)) is amended— 

10 (1) in the matter preceding subparagraph (A) 

11 of paragraph (1), by striking ‘‘Notwithstanding any 

12 other provision of this subsection,’’ and inserting 

13 ‘‘Except as provided in paragraph (4),’’; 

14 (2) by striking paragraph (2) and inserting the 

15 following: 

16 ‘‘(2) SERVICE-CONNECTED DISABILITY DETER17 MINATIONS.— 

18 ‘‘(A) IN GENERAL.—A borrower who has 

19 been determined by the Secretary of Veterans 

20 Affairs or Secretary of Defense to be unemploy21 able due to a service-connected condition and 

22 who provides documentation of such determina23 tion to the Secretary of Education, shall be con24 sidered permanently and totally disabled for the 

25 purpose of discharging such borrower’s loans 

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1 under this subsection, and such borrower shall 

2 not be required to present additional docu3 mentation for purposes of this subsection. 

4 ‘‘(B) DETERMINATION BY THE SECRETARY

5 OF VETERANS AFFAIRS OR THE SECRETARY OF

6 DEFENSE.— 

7 ‘‘(i) IN GENERAL.—A borrower who 

8 has been assigned a disability rating of 

9 100 percent (or a combination of ratings 

10 equaling 100 percent or more) by the Sec11 retary of Veterans Affairs or the Secretary 

12 of Defense for a service-connected dis13 ability (as defined in section 101 of title 

14 38, United States Code) and who provides 

15 documentation of such rating to the Sec16 retary of Education, shall be considered 

17 permanently and totally disabled for the 

18 purpose of discharging such borrower’s 

19 loans under this subsection, and such bor20 rower shall not be required to present any 

21 additional documentation for purposes of 

22 this subsection. 

23 ‘‘(ii) RATING OF DISABILITY.—A dis24 ability rating described in clause (i), or 

25 similar determination of unemployability 

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1 by the Secretary of Veterans Affairs or the 

2 Secretary of Defense, transmitted in ac3 cordance with clause (iii) shall be consid4 ered sufficient documentation for purposes 

5 of this subsection. 

6 ‘‘(iii) TRANSFER OF INFORMATION.— 

7 Not later than 180 days after the date of 

8 enactment of the Higher Education Afford9 ability Act, the Secretary, in coordination 

10 with the Secretary of Defense and the Sec11 retary of Veteran Affairs, shall create a 

12 system through which the applicable dis13 ability ratings (or alternative means of 

14 transmitting a determination of 

15 unemployability) shall be automatically 

16 transmitted from the Department of De17 fense or the Department of Veterans Af18 fairs, as the case may be, to the Depart19 ment of Education and shall satisfy the 

20 documentation requirement described in 

21 this subparagraph. The Secretary shall 

22 have the authority to enter into any agree23 ments necessary to implement the require24 ments of this subparagraph. 

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1 ‘‘(3) DISABILITY DETERMINATIONS BY THE SO2 CIAL SECURITY ADMINISTRATION.—A borrower who 

3 has been determined by the Social Security Adminis4 tration to be disabled with medical improvement not 

5 expected and who provides documentation of such 

6 determination to the Secretary of Education, shall 

7 be considered permanently and totally disabled for 

8 the purpose of discharging such borrower’s loans 

9 under this subsection, and such borrower shall not 

10 be required to present additional documentation for 

11 purposes of this subsection. 

12 ‘‘(4) REINSTATEMENT PROVISIONS.—A bor13 rower of a loan that is discharged under paragraph 

14 (2) or (3) shall not be subject to the reinstatement 

15 provisions described in paragraph (1). 

16 ‘‘(5) DATA COLLECTION AND REPORT TO CON17 GRESS.— 

18 ‘‘(A) DATA COLLECTION.—The Secretary 

19 shall annually collect data about borrowers ap20 plying for, and borrowers receiving, loan dis21 charges under this subsection, which shall in22 clude the following: 

23 ‘‘(i) Data regarding— 

24 ‘‘(I) the number of applications 

25 received under this subsection; 

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1 ‘‘(II) the number of such applica2 tions that were approved; and 

3 ‘‘(III) the number of loan dis4 charges that were completed under 

5 this subsection. 

6 ‘‘(ii) A summary of the reasons why 

7 the Secretary reinstated the obligation of, 

8 and resumed collection on, loans dis9 charged under this subsection. 

10 ‘‘(iii) The data described in subclauses 

11 (I) through (III) of clause (i), and clause 

12 (ii), for each of the following: 

13 ‘‘(I) Borrowers applying for, and 

14 borrowers receiving, loan discharges 

15 under paragraph (2)(A). 

16 ‘‘(II) Borrowers applying for, and 

17 borrowers receiving, loan discharges 

18 under paragraph (2)(B). 

19 ‘‘(III) Borrowers applying for, 

20 and borrowers receiving, loan dis21 charges under paragraph (3). 

22 ‘‘(iv) Any other information the Sec23 retary determines is necessary. 

24 ‘‘(B) REPORT.—The Secretary shall annu25 ally report to Congress, and make publicly 

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1 available, the information described in subpara2 graph (A).’’. 

3 (b) REPORTS.— 

4 (1) PLAN.—Not later than 90 days after the 

5 date of the enactment of this Act, the Secretary of 

6 Education shall submit to the appropriate commit7 tees of Congress a report that includes a plan to 

8 carry out the activities described under section 

9 437(a)(2)(B)(iii) of the Higher Education Act of 

10 1965 (20 U.S.C. 1087(a)(2)(B)(iii)), as amended by 

11 this section. 

12 (2) FOLLOW-UP REPORT.—If the Secretary of 

13 Education has not carried out the activities de14 scribed under section 437(a)(2)(B)(iii) of the Higher 

15 Education Act of 1965, as amended by this section, 

16 by the date that is 1 year after the date of enact17 ment of this Act, the Secretary of Education shall 

18 submit to the appropriate committees of Congress, 

19 by such date, a report that includes an explanation 

20 of why those activities have not been implemented. 

21 SEC. 431. TREATMENT OF BORROWERS FALSELY CER22 TIFIED AS ELIGIBLE TO BORROW DUE TO 

23 IDENTITY THEFT. 

24 Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended 

25 by striking ‘‘of a crime’’. 

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1 PART C—FEDERAL WORK-STUDY PROGRAMS 

2 SEC. 441. AUTHORIZATION OF APPROPRIATIONS. 

3 Section 441(b) (42 U.S.C. 2751(b)) is amended by 

4 striking ‘‘2009’’ and inserting ‘‘2015’’. 

5 SEC. 442. FEDERAL WORK STUDY ALLOCATION OF FUNDS. 

6 Section 442 (42 U.S.C. 2752) is amended— 

7 (1) by striking subsection (a) and inserting the 

8 following: 

9 ‘‘(a) ALLOCATION BASED ON PREVIOUS ALLOCA10 TION.— 

11 ‘‘(1) IN GENERAL.—From the amount appro12 priated pursuant to section 441(b), for each fiscal 

13 year, the Secretary shall allocate to each eligible in14 stitution an amount equal to not less than 90 per15 cent and not more than 110 percent of the amount 

16 that the eligible institution received under this sub17 section and subsection (b) (as such subsections were 

18 in effect with respect to allocations for such fiscal 

19 year) for the previous fiscal year for which that in20 stitution received funds under this section. 

21 ‘‘(2) RATABLE REDUCTION.—If the amount ap22 propriated for any fiscal year is less than the 

23 amount required to be allocated to all institutions 

24 under paragraph (1), then the amount of the alloca25 tion to each such institution shall be ratably re26 duced. 

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1 ‘‘(3) NO PREVIOUS ALLOCATION.—In the case 

2 of an institution that has not received a previous al3 location under this section, the Secretary shall allo4 cate funds under this section solely on the basis of 

5 the self-help need determination described under 

6 subsection (c).’’; and 

7 (2) in subsection (c)— 

8 (A) in paragraph (2), by striking ‘‘To de9 termine the self-help need of an institution’s eli10 gible undergraduate students,’’ and inserting 

11 ‘‘Until such time as the Secretary establishes a 

12 revised method to determine the self-help need 

13 of an institution’s eligible undergraduate stu14 dents, in accordance with paragraph (5),’’; 

15 (B) in paragraph (3), by striking ‘‘To de16 termine the self-help need of an institution’s eli17 gible graduate and professional students,’’ and 

18 inserting ‘‘Until such time as the Secretary es19 tablishes a revised method to determine the 

20 self-help need of an institution’s eligible grad21 uate and professional students, in accordance 

22 with paragraph (5),’’; and 

23 (C) by adding at the end the following: 

24 ‘‘(5) Not later than 1 year after the date of en25 actment of the Higher Education Affordability Act, 

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1 the Secretary shall establish revised methods for de2 termining the self-help need of an institution’s eligi3 ble undergraduate students, as described in para4 graph (2), and eligible graduate and professional 

5 students, as described in paragraph (3), which shall 

6 take into account the number of low- and moderate7 income students that an eligible institution serves. 

8 The Secretary shall promulgate any regulations nec9 essary to carry out the revised methods of deter10 mining an eligible institution’s self-help need under 

11 this subsection.’’. 

12 SEC. 443. INSTITUTIONAL SHARE OF FEDERAL WORK 

13 STUDY FUNDS. 

14 Section 443(b)(5) (42 U.S.C. 2753(b)(5)) is amended 

15 by striking ‘‘75 percent’’ and inserting ‘‘50 percent’’ each 

16 place the term appears. 

17 SEC. 444. ADDITIONAL FUNDS TO CONDUCT COMMUNITY 

18 SERVICE WORK-STUDY PROGRAMS. 

19 Section 447(b)(4) (42 U.S.C. 2756a(b)(4)) is amend20 ed by striking ‘‘2009’’ and inserting ‘‘2015’’. 

21 SEC. 445. WORK COLLEGES. 

22 Section 448(f) (42 U.S.C. 2756b(f)) is amended by 

23 striking ‘‘2009’’ and inserting ‘‘2015’’. 

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1 PART D—FEDERAL DIRECT LOAN PROGRAM 

2 SEC. 451. ELIMINATION OF ORIGINATION FEES AND OTHER 

3 AMENDMENTS TO TERMS AND CONDITIONS 

4 OF LOANS. 

5 (a) AMENDMENTS.—Section 455 (20 U.S.C. 1087e) 

6 is amended— 

7 (1) by repealing subsection (c); 

8 (2) in subsection (d)— 

9 (A) in paragraph (1)(D), by inserting ‘‘or 

10 to any borrower who has not selected the in11 come contingent repayment plan before the date 

12 that is 1 year after the date of enactment of the 

13 Higher Education Affordability Act’’ before the 

14 semicolon at the end; and 

15 (B) in paragraph (5)— 

16 (i) by striking subparagraph (A) and 

17 inserting the following: 

18 ‘‘(A) pay collection costs in an amount 

19 that is reasonable and that does not exceed the 

20 bona fide collection costs associated with such 

21 student loan that are actually incurred in col22 lecting the debt against the borrower; and’’; 

23 and 

24 (ii) in subparagraph (B), by striking 

25 ‘‘income contingent repayment plan’’ and 

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1 inserting ‘‘income-based repayment plan, 

2 as provided in 493C’’; 

3 (3) in subsection (e)— 

4 (A) in paragraph (1), by striking ‘‘The 

5 Secretary may’’ and inserting ‘‘With respect to 

6 borrowers who have selected, or been required 

7 to use, an income contingent repayment plan 

8 before the date that is 1 year after the date of 

9 enactment of the Higher Education Afford10 ability Act, the Secretary may’’; 

11 (B) in paragraph (3), by inserting ‘‘before 

12 the date that is 1 year after the date of enact13 ment of the Higher Education Affordability 

14 Act’’ after ‘‘income contingent repayment’’; 

15 (C) by striking paragraph (6); and 

16 (D) by redesignating paragraph (7) as 

17 paragraph (6); 

18 (4) in subsection (f)(2)— 

19 (A) in subparagraph (C), by striking ‘‘the 

20 borrower—’’ and all that follows through ‘‘de21 scribed in clause (i) or (ii); or’’ and inserting 

22 ‘‘the borrower is performing eligible military 

23 service, and for the 180-day period following 

24 the demobilization date for such eligible mili25 tary service;’’; 

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1 (B) by redesignating subparagraph (D) as 

2 subparagraph (E); and 

3 (C) by inserting after subparagraph (C) 

4 the following: 

5 ‘‘(D) any period not in excess of 180 days 

6 after the effective movement date listed on the 

7 military orders of a borrower’s spouse if that 

8 spouse is a member of the Armed Forces who 

9 has received military orders for a permanent 

10 change of station; or’’; 

11 (5) by striking subsection (h) and inserting the 

12 following: 

13 ‘‘(h) BORROWER CLAIMS AND DEFENSES.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding any other 

15 provision of State or Federal law, a borrower, re16 gardless of the account status of the borrower’s loan, 

17 may assert as an affirmative claim or defense 

18 against repayment, any act or omission of an insti19 tution of higher education attended by the borrower 

20 that would give rise to a cause of action against the 

21 institution under this Act, other Federal law, or ap22 plicable State law, except that in no event may a 

23 borrower recover from the Secretary, in any action 

24 arising from or relating to a loan made under this 

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1 part, an amount in excess of the amount such bor2 rower has repaid on such loan. 

3 ‘‘(2) EXERCISE BY SECRETARY.—The Secretary 

4 may elect to carry out the authority under this sub5 section on behalf of a group of multiple borrowers 

6 if the Secretary determines that the group has been 

7 harmed by the same act, omission, or practice.’’; 

8 (6) in subsection (m)— 

9 (A) by redesignating paragraphs (3) and 

10 (4) as paragraphs (4) and (5), respectively; and 

11 (B) by inserting after paragraph (2) the 

12 following: 

13 ‘‘(3) LUMP SUM PAYMENT.—For purposes of 

14 this subsection, if a borrower has enrolled in a re15 payment plan described in paragraph (1)(A) and 

16 makes a lump sum payment through a student loan 

17 repayment program under section 2171 of title 10, 

18 United States Code, or a similarly structured eligible 

19 repayment program (as determined by the Sec20 retary), the Secretary will treat the borrower as hav21 ing made a number of qualifying payments equal to 

22 the lesser of— 

23 ‘‘(A) the number, rounded to the nearest 

24 whole number, equal to the quotient of— 

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1 ‘‘(i) such lump sum payment; divided 

2 by 

3 ‘‘(ii) the monthly payment amount 

4 that the borrower would have otherwise 

5 made under the repayment plan described 

6 in paragraph (1)(A) selected by the bor7 rower; or 

8 ‘‘(B) 12 payments.’’; and 

9 (7) in subsection (o)— 

10 (A) by striking paragraph (1) and insert11 ing the following: 

12 ‘‘(1) IN GENERAL.—Notwithstanding any other 

13 provision of this part and in accordance with para14 graphs (2) and (4), the Secretary shall not charge 

15 interest on a loan made to a borrower under this 

16 part for which the first disbursement is made on or 

17 after October 1, 2008, during the period in which a 

18 borrower who is performing eligible military service 

19 is serving in an area of hostilities in which service 

20 qualifies for special pay under section 310 of title 

21 37, United States Code.’’; 

22 (B) by striking paragraph (3) and insert23 ing the following: 

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1 ‘‘(3) IMPLEMENTATION OF ACCRUAL OF INTER2 EST PROVISION FOR MEMBERS OF THE ARMED

3 FORCES.— 

4 ‘‘(A) IN GENERAL.—The Secretary of Edu5 cation shall enter into any necessary agree6 ments, including agreements with the Commis7 sioner of the Internal Revenue Service and the 

8 Secretary of Defense— 

9 ‘‘(i) to ensure that interest does not 

10 accrue for eligible military borrowers, in 

11 accordance with this subsection; and 

12 ‘‘(ii) to obtain or provide any informa13 tion necessary to implement clause (i) 

14 without requiring a request from the bor15 rower. 

16 ‘‘(B) REPORTS.— 

17 ‘‘(i) PLAN.—Not later than 90 days 

18 after the date of enactment of the Higher 

19 Education Affordability Act, the Secretary 

20 shall submit to the appropriate committees 

21 of Congress a report that includes a plan 

22 to implement the accrual of interest provi23 sion described in subparagraph (A). 

24 ‘‘(ii) FOLLOW-UP REPORT.—If the 

25 Secretary has not implemented the accrual 

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1 of interest provision described in subpara2 graph (A) by the date that is 1 year after 

3 the date of enactment of the Higher Edu4 cation Affordability Act, the Secretary 

5 shall submit, by such date, a report that 

6 includes an explanation of why such provi7 sion has not been implemented.’’; and 

8 (C) in paragraph (4), by striking ‘‘who 

9 qualifies as an eligible military borrower under 

10 this subsection’’ and inserting ‘‘described in 

11 paragraph (1)’’. 

12 (b) EFFECTIVE DATES.— 

13 (1) REPEAL OF LOAN FEES.—The amendment 

14 made by subsection (a)(1) shall apply with respect to 

15 loans made under part D of title IV of the Higher 

16 Education Act of 1965 (20 U.S.C. 1087a et seq.) for 

17 which the first disbursement of principal is made, 

18 or, in the case of a Federal Direct Consolidation 

19 Loan made under such part, the application is re20 ceived, on or after July 1, 2014. 

21 (2) TERMINATING INCOME CONTINGENT REPAY22 MENT.—The amendments made by subparagraphs 

23 (A) and (B)(ii) of paragraph (2), and paragraph (3), 

24 of subsection (a) shall take effect on the date that 

25 is 1 year after the date of enactment of this Act. 

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1 SEC. 452. IMPROVED STUDENT LOAN SERVICING AND DEBT 

2 COLLECTION PRACTICES. 

3 (a) AMENDMENTS.—Section 456 (20 U.S.C. 1087f) 

4 is amended by adding at the end the following: 

5 ‘‘(c) LIMITATION ON CONTRACTS FOR THE SERV6 ICING OF LOANS.— 

7 ‘‘(1) IN GENERAL.—A contract entered into 

8 under this section for the servicing of loans made or 

9 purchased under this part shall include— 

10 ‘‘(A) a provision that prohibits the servicer 

11 from marketing to a borrower of a loan which 

12 the servicer services, a financial product or 

13 service while the borrower is enrolled in an in14 stitution of higher education; 

15 ‘‘(B) a provision that, after the borrower is 

16 no longer enrolled in an institution of higher 

17 education, the servicer may only market a fi18 nancial product or service to the borrower 

19 through an opt-in rather than an opt-out sys20 tem; and 

21 ‘‘(C) a provision that, to the extent prac22 ticable, the servicer shall clearly disclose in any 

23 written material or correspondence sent or 

24 made available to the borrower (including cor25 respondence and disclosures on the website of 

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1 ence is in relation to a Department of Edu2 cation loan. 

3 ‘‘(2) NO PREDISPUTE ARBITRATION

4 CLAUSES.—A contract entered into under this sec5 tion for the servicing of loans made or purchased 

6 under this part shall include a provision that any 

7 rights and remedies available to borrowers against 

8 the servicer may not be waived by any agreement, 

9 policy, or form, including by a predispute arbitration 

10 agreement. 

11 ‘‘(d) STUDY OF DIRECT LOAN DEBT COLLECTION.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall con13 duct a study to determine whether it is efficient and 

14 effective to contract with private entities under this 

15 section for the collection of loans made or purchased 

16 under this part that are in default. 

17 ‘‘(2) EVALUATION METHOD.—For purposes of 

18 the study described in paragraph (1), the Secretary 

19 shall evaluate efficiency and effectiveness in terms 

20 of— 

21 ‘‘(A) the cost incurred by the Federal Gov22 ernment for the collections of defaulted loans 

23 under this part through contracts under this 

24 section, and such cost in comparison with the 

25 costs of other methods by which debt owed to 

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1 the Federal Government are collected or recov2 ered, including the collection of any unpaid 

3 Federal income taxes; 

4 ‘‘(B) the consumer protections provided to 

5 the borrower who has defaulted on a loan under 

6 this part through the collections process; 

7 ‘‘(C) the impact of the collections process 

8 for defaulted loans under this part on the integ9 rity of the loan program carried out under this 

10 part; and 

11 ‘‘(D) borrower experience, as determined 

12 through borrower surveys. 

13 ‘‘(3) RECOVERY COSTS.— 

14 ‘‘(A) IN GENERAL.—As part of the study 

15 conducted under this subsection, the Secretary 

16 shall calculate the average recovery cost, per 

17 dollar recovered, through the collection of de18 faulted loans made under this part, in the ag19 gregate for all borrowers of defaulted loans and 

20 disaggregated for the following categories of 

21 borrowers of defaulted loans: 

22 ‘‘(i) Veterans with a service-connected 

23 disability (as defined in section 101 of title 

24 38, United States Code). 

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1 ‘‘(ii) Individuals who are entitled to 

2 benefits under section 223 of the Social 

3 Security Act (42 U.S.C. 423). 

4 ‘‘(iii) Individuals who are allowed an 

5 earned income tax credit pursuant to sec6 tion 32 of the Internal Revenue Code of 

7 1986. 

8 ‘‘(iv) Recipients of assistance under 

9 the supplemental nutrition assistance pro10 gram established under the Food and Nu11 trition Act of 2008 (7 U.S.C. 2011 et 

12 seq.). 

13 ‘‘(B) CONSULTATION.—The Secretary 

14 shall consult with the Secretary of the Treas15 ury, the Administrator of the Social Security 

16 Administration, the Secretary of Veterans Af17 fairs, and the Secretary of Agriculture, as ap18 propriate, in order to identify individuals in the 

19 categories described in clauses (i) through (iv) 

20 of subparagraph (A) and to calculate the aver21 age recovery cost per dollar recovered for each 

22 category of borrowers. 

23 ‘‘(4) ADDITIONAL INFORMATION REGARDING

24 COSTS.—The Secretary may directly carry out collec25 tion activities for a subset of defaulted loans under 

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1 this part, instead of awarding contracts under sub2 section (b)(2) for such activities, if the Secretary de3 termines it would better inform the study required 

4 under paragraph (1). 

5 ‘‘(5) REPORT.—By not later than the date that 

6 is 1 year after the date of enactment of the Higher 

7 Education Affordability Act, the Secretary shall pre8 pare and submit to the authorizing committees a re9 port that includes the findings of the study con10 ducted under paragraph (1). 

11 ‘‘(e) CERTIFICATION NECESSARY FOR CONTINUED

12 PRIVATE DEBT COLLECTIONS.— 

13 ‘‘(1) CERTIFICATION.—Not later than 1 year 

14 after the date of enactment of the Higher Education 

15 Affordability Act, the Secretary shall submit to the 

16 authorizing committees, and make available to the 

17 public— 

18 ‘‘(A) a certification that the Secretary has 

19 determined, based on the results of the study 

20 conducted under subsection (d), that— 

21 ‘‘(i) the use of private entities for the 

22 collection of defaulted loans made or pur23 chased under this part is necessary to 

24 maintain the integrity of the loan program 

25 carried out under this part; 

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1 ‘‘(ii) the collection costs paid to such 

2 private entities under the contracts author3 ized by this section, in the aggregate and 

4 for each category of borrowers described in 

5 subsection (d)(3)(A), are reasonable; and 

6 ‘‘(iii) expending funds for such collec7 tion costs is in the best financial interest 

8 of the United States; or 

9 ‘‘(B) a notification that the Secretary will 

10 not issue the certification described in subpara11 graph (A). 

12 ‘‘(2) PROHIBITION OF CONTRACTS FOR PRIVATE

13 DEBT COLLECTIONS WITHOUT CERTIFICATION.— 

14 Notwithstanding subsection (b)(2), beginning on the 

15 date that is 1 year after the date of enactment of 

16 the Higher Education Affordability Act, the Sec17 retary shall not enter into any contract with a pri18 vate entity under this section for the collection of de19 faulted loans made or purchased under this part if 

20 the Secretary did not issue the certification de21 scribed in paragraph (1)(A) by such date. 

22 ‘‘(f) TERMINATION OF CONTRACTS.— 

23 ‘‘(1) TERMINATION.—The Secretary shall ter24 minate any contract with an entity for the collection 

25 of defaulted loans made or purchased under this 

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1 part if the entity, an affiliate of that entity, or a 

2 service provider of the entity is found to have com3 mitted a violation of— 

4 ‘‘(A) the prohibition on unfair, deceptive, 

5 or abusive acts or practices under section 1031 

6 of the Consumer Financial Protection Act of 

7 2010 (12 U.S.C. 5531), including the regula8 tions promulgated under such section, relating 

9 to the services performed pursuant to a con10 tract under this section; or 

11 ‘‘(B) the Fair Debt Collection Practices 

12 Act (15 U.S.C. 1692 et seq.), including the reg13 ulations promulgated under such Act, relating 

14 to the services performed pursuant to a con15 tract under this section. 

16 ‘‘(2) PROHIBITION ON ADDITIONAL CON17 TRACTS.—If the Secretary terminates a contract 

18 with an entity under paragraph (1), such entity— 

19 ‘‘(A) shall not be eligible to participate in 

20 the next award cycle for contracts relating to 

21 the collection of defaulted loans made or pur22 chased under this part that follows the date of 

23 termination of the contract; and 

24 ‘‘(B) shall not be eligible to receive any 

25 new contract relating to the collection of such 

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1 defaulted loans during the 2-year period begin2 ning on the date of termination. 

3 ‘‘(3) IDENTIFICATION OF OTHER VIOLA4 TIONS.— 

5 ‘‘(A) IN GENERAL.—In any case where the 

6 Secretary obtains evidence that any person or 

7 entity has engaged in debt collection practices 

8 described in paragraph (1) that may constitute 

9 a violation of Federal law, the Secretary shall 

10 transmit such evidence to the Director of the 

11 Bureau of Consumer Financial Protection for 

12 further proceedings under the appropriate law. 

13 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

14 in this paragraph shall be construed to affect 

15 any other authority provided to the Secretary to 

16 disclose information to a Federal agency.’’. 

17 (b) STUDY AND REPORT ON SPECIALTY SERVICING

18 CONTRACTS.— 

19 (1) IN GENERAL.—The Secretary of Education, 

20 in consultation with the Director of the Bureau of 

21 Consumer Financial Protection and the Secretary of 

22 the Treasury, shall— 

23 (A) conduct a study as to whether spe24 cialty servicing contracts in the Federal Direct 

25 Loan Program under part D of title IV of the 

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1 Higher Education Act of 1965 (20 U.S.C. 

2 1087a et seq.) could better serve varying seg3 ments of student loan borrowers, and, in par4 ticular, the unique needs of borrowers in delin5 quency or experiencing partial financial hard6 ship and the allocation of servicer resources to 

7 assist such borrower segment; and 

8 (B) not later than 180 days after the date 

9 of enactment of this Act, submit a report to the 

10 Committee on Health, Education, Labor, and 

11 Pensions and the Committee on Banking, 

12 Housing, and Urban Affairs of the Senate, and 

13 the Committee on Education and the Workforce 

14 and the Committee on Financial Services of the 

15 House of Representatives, on the study de16 scribed in subparagraph (A). 

17 (2) SPECIALTY SERVICING CONTRACT.—In this 

18 subsection, the term ‘‘specialty servicing contract’’ 

19 means a contract— 

20 (A) entered into pursuant to section 456 of 

21 the Higher Education Act of 1965 (20 U.S.C. 

22 1087f) for the servicing of loans made or pur23 chased under part D of title IV of such Act (20 

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1 icing loans for a distinct and specified subset of 

2 borrowers; and 

3 (B) that may be compensated at a greater 

4 level for such services, as determined appro5 priate by the Secretary of Education. 

6 (c) REPORT ON SERVICER COMPENSATION.— 

7 (1) IN GENERAL.—The Secretary of Education, 

8 in consultation with the Director of the Bureau of 

9 Consumer Financial Protection and the Secretary of 

10 the Treasury, shall conduct a report— 

11 (A) on the compensation and incentive 

12 structure for servicers of loans made, insured, 

13 or guaranteed under title IV of the Higher 

14 Education Act of 1965 (20 U.S.C. 1070 et 

15 seq.) and whether servicers adequately encour16 age repayment, as well as the use of alternative 

17 repayment options and discharge where appro18 priate; and 

19 (B) that includes an analysis of the criteria 

20 utilized by the Department of Education in de21 termining performance-based allocation of ac22 count volume in entering into contracts for 

23 servicing of loans made or purchased under 

24 part D of title IV of the Higher Education Act 

25 of 1965 (20 U.S.C. 1087a et seq.), and the efmstockstill on DSK4VPTVN1PROD with BILLS

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1 fectiveness of those metrics in promoting repay2 ment. 

3 (2) COMMENTS FROM THE PUBLIC.—In con4 ducting the report under paragraph (1), the Sec5 retary of Education, in consultation with the Direc6 tor of the Bureau of Consumer Financial Protection 

7 and the Secretary of the Treasury, shall seek and 

8 take comments from the public. 

9 (3) PROCEDURES TO IMPLEMENT REC10 OMMENDATIONS.—If the report conducted under 

11 paragraph (1) includes recommendations on meas12 ures to improve the incentive structure, the report 

13 shall also include the procedures to implement such 

14 recommendations. 

15 (4) PUBLICATION.—The report conducted 

16 under paragraph (1) shall be published not later 

17 than 180 days after the date of enactment of this 

18 Act. 

19 (d) REPORT AND PLAN ON FFEL SERVICING.— 

20 (1) IN GENERAL.—Not later than 180 days 

21 after the date of enactment of this Act, the Sec22 retary of Education, in consultation with the Direc23 tor of the Bureau of Consumer Financial Protection 

24 and the Secretary of the Treasury, shall publish a 

25 report that identifies whether the public has ademstockstill on DSK4VPTVN1PROD with BILLS

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1 quate visibility into the market of loan servicing 

2 under part B of title IV of the Higher Education 

3 Act of 1965 (20 U.S.C. 1071 et seq.) to adequately 

4 assess the performance of such servicing under such 

5 part, including— 

6 (A) the utilization of alternative repayment 

7 plans; 

8 (B) the distribution of delinquent and de9 faulted loan balances; and 

10 (C) loan performance by institution type. 

11 (2) PLAN.—If the Secretary of Education, in 

12 consultation with the Director of the Bureau of Con13 sumer Financial Protection and the Secretary of the 

14 Treasury, determines that the public does not have 

15 enough visibility into the market of loan servicing, as 

16 described in paragraph (1), the Secretary of Edu17 cation, in consultation with the Director of the Bu18 reau of Consumer Financial Protection and the Sec19 retary of the Treasury, shall establish a plan to dis20 close such information necessary to provide for such 

21 visibility. 

22 (e) REPORT ON SERVICING CHALLENGES.—The Sec23 retary of Education shall periodically issue a report, at 

24 times determined appropriate by the Secretary, about the 

25 challenges borrowers face in the servicing of their student 

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1 loans, impediments to the efficient and effective servicing 

2 of loans under title IV of the Higher Education Act of 

3 1965 (20 U.S.C. 1070 et seq.), and any changes, including 

4 protections for consumers, that should be considered to 

5 improve postsecondary education loan servicing for all bor6 rowers, servicers, taxpayers, and the Department of Edu7 cation. 

8 SEC. 453. FUNDS FOR ADMINISTRATIVE EXPENSES. 

9 Section 458(a) (20 U.S.C. 1087h(a)) is amended— 

10 (1) in paragraph (3)— 

11 (A) in the paragraph heading, by striking 

12 ‘‘2007 THROUGH 2014’’ and inserting ‘‘2015

13 THROUGH 2020’’; and 

14 (B) by striking ‘‘2007 through 2014’’ and 

15 inserting ‘‘2015 through 2020’’; 

16 (2) in paragraph (4), by striking ‘‘2007 

17 through 2014’’ and inserting ‘‘2015 through 2020’’; 

18 and 

19 (3) in paragraph (5), by striking ‘‘paragraph 

20 (3)’’ and inserting ‘‘paragraph (4)’’. 

21 SEC. 454. FEDERAL DIRECT LOAN FORGIVENESS FOR CER22 TAIN AMERICAN INDIAN EDUCATORS. 

23 Section 460(c) (20 U.S.C. 1087j(c)) is amended by 

24 adding at the end the following: 

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1 ‘‘(4) AMERICAN INDIAN TEACHERS IN LOCAL

2 EDUCATIONAL AGENCIES WITH A HIGH PERCENTAGE

3 OF AMERICAN INDIAN STUDENTS.—Notwithstanding 

4 the amount specified in paragraph (1) and the re5 quirements under subparagraphs (A) and (B) of 

6 subsection (b)(1), the aggregate amount that the 

7 Secretary shall cancel under this section shall be not 

8 more than $17,500 in the case of a borrower who— 

9 ‘‘(A) has been employed as a full-time 

10 teacher for 5 consecutive complete school years 

11 in a local educational agency described in sec12 tion 7112(b) of the Elementary and Secondary 

13 Education Act of 1965 or in a school operated 

14 or funded by the Bureau of Indian Education; 

15 and 

16 ‘‘(B) is a member of an Indian tribe (as 

17 defined in section 4 of the Indian Self-Deter18 mination and Education Assistance Act (25 

19 U.S.C. 450b)).’’. 

20 PART E—FEDERAL PERKINS LOANS 

21 SEC. 461. APPROPRIATIONS AUTHORIZED. 

22 Section 461(b) (20 U.S.C. 1087aa) is amended— 

23 (1) in paragraph (1), by striking 

24 ‘‘$300,000,000’’ and all that follows through the pe25 riod at the end and by inserting ‘‘such sums as may 

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1 be necessary for fiscal year 2015 and each of the 

2 five succeeding fiscal years.’’; and 

3 (2) in paragraph (2), by striking ‘‘2015’’ each 

4 place the term appears and inserting ‘‘2021’’. 

5 SEC. 462. PERKINS ALLOCATION OF FUNDS. 

6 Section 462 (20 U.S.C. 1087bb) is amended— 

7 (1) by striking subsection (a) and inserting the 

8 following: 

9 ‘‘(a) ALLOCATION BASED ON PREVIOUS ALLOCA10 TION.— 

11 ‘‘(1) IN GENERAL.—From the amount appro12 priated pursuant to section 461(b), for each fiscal 

13 year, the Secretary shall allocate to each eligible in14 stitution an amount equal to not less than 90 per15 cent and not more than 110 percent of the amount 

16 that the eligible institution received under this sub17 section and subsection (b) (as such subsections were 

18 in effect with respect to allocations for such fiscal 

19 year) for the previous fiscal year for which that in20 stitution received funds under this section. 

21 ‘‘(2) RATABLE REDUCTION.—If the amount ap22 propriated for any fiscal year is less than the 

23 amount required to be allocated to all institutions 

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1 tion to each such institution shall be ratably re2 duced. 

3 ‘‘(3) NO PREVIOUS ALLOCATION.—In the case 

4 of an institution that has not received a previous al5 location under this section, the Secretary shall allo6 cate funds under this section solely on the basis of 

7 the self-help need determination described under 

8 subsection (c).’’; and 

9 (2) in subsection (c)— 

10 (A) in paragraph (2), by striking ‘‘To de11 termine the self-help need of an institution’s eli12 gible undergraduate students,’’ and inserting 

13 ‘‘Until such time as the Secretary establishes a 

14 revised method to determine the self-help need 

15 of an institution’s eligible undergraduate stu16 dents, in accordance with paragraph (5),’’; 

17 (B) in paragraph (3), by striking ‘‘To de18 termine the self-help need of an institution’s eli19 gible graduate and professional students,’’ and 

20 inserting ‘‘Until such time as the Secretary es21 tablishes a revised method to determine the 

22 self-help need of an institution’s eligible grad23 uate and professional students, in accordance 

24 with paragraph (5),’’; and 

25 (C) by adding at the end the following: 

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1 ‘‘(5) Not later than 1 year after the date of en2 actment of the Higher Education Affordability Act, 

3 the Secretary shall establish revised methods for de4 termining the self-help need of an institution’s eligi5 ble undergraduate students, as described in para6 graph (2), and eligible graduate and professional 

7 students, as described in paragraph (3), which shall 

8 take into account the number of low- and moderate9 income students that an eligible institution serves. 

10 The Secretary shall promulgate any regulations nec11 essary to carry out the revised methods of deter12 mining an eligible institution’s self-help need under 

13 this subsection.’’. 

14 SEC. 463. INSTITUTIONAL CONTRIBUTIONS FOR PERKINS. 

15 Section 463(a)(2)(B) (20 U.S.C. 1087cc(a)(2)(B)) is 

16 amended by striking ‘‘one-third of the Federal capital con17 tributions’’ and inserting ‘‘50 percent of the Federal cap18 ital contributions’’. 

19 SEC. 464. SIMPLIFICATION OF MILITARY DEFERMENT ELI20 GIBILITY. 

21 Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A)) is 

22 amended— 

23 (1) by redesignating clauses (iv) and (v) as 

24 clauses (v) and (vi), respectively; 

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1 (2) in clause (iii), by striking ‘‘the borrower— 

2 ’’ and all that follows through ‘‘described in sub3 clause (I) or (II);’’ and inserting ‘‘during which the 

4 borrower is performing eligible military service, and 

5 for the 180-day period following the demobilization 

6 date for such eligible military service;’’; and 

7 (3) by inserting after clause (iii) the following: 

8 ‘‘(iv) not in excess of 180 days after the ef9 fective movement date listed on the military or10 ders of a borrower’s spouse if that spouse is a 

11 member of the Armed Forces who has received 

12 military orders for a permanent change of sta13 tion; or’’. 

14 SEC. 465. FORGIVENESS OF LOANS FOR ELIGIBLE MILI15 TARY SERVICE. 

16 Section 465(a)(2)(D) (20 U.S.C. 1087ee(a)(2)(D)) is 

17 amended by striking ‘‘qualifies for special pay under sec18 tion 310 of title 37, United States Code, as an area of 

19 hostilities’’ and inserting ‘‘is eligible military service’’. 

20 SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 

21 FUNDS. 

22 Section 466(b) (20 U.S.C. 1087ff(b)) is amended by 

23 striking ‘‘October 1, 2012’’ and inserting ‘‘October 1, 

24 2021’’. 

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1 PART F—NEED ANALYSIS 

2 SEC. 471. INCREASED INCOME PROTECTION ALLOWANCE 

3 FOR DEPENDENT STUDENTS. 

4 (a) AMENDMENT.—Section 475(g)(2)(D) (20 U.S.C. 

5 1087oo(g)(2)(D)) is amended to read as follows: 

6 ‘‘(D) an income protection allowance (or a 

7 successor amount prescribed by the Secretary 

8 under section 478) of $8,451 for academic year 

9 2015–2016;’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 subsection (a) shall take effect on July 1, 2015. 

12 SEC. 472. INCREASED INCOME PROTECTION ALLOWANCE 

13 FOR INDEPENDENT STUDENTS WITHOUT DE14 PENDENTS OTHER THAN A SPOUSE. 

15 (a) AMENDMENT.—Section 476(b)(1)(A)(iv) (20 

16 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as fol17 lows: 

18 ‘‘(iv) an income protection allowance 

19 (or a successor amount prescribed by the 

20 Secretary under section 478)— 

21 ‘‘(I) for single or separated stu22 dents, or married students where both 

23 are enrolled pursuant to subsection 

24 (a)(2), of $13,135 for academic year 

25 2015–2016; and 

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1 ‘‘(II) for married students where 

2 1 is enrolled pursuant to subsection 

3 (a)(2), of $21,060 for academic year 

4 2015–2016;’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 subsection (a) shall take effect on July 1, 2015. 

7 SEC. 473. INCREASED INCOME PROTECTION ALLOWANCE 

8 FOR INDEPENDENT STUDENTS WITH DE9 PENDENTS OTHER THAN A SPOUSE. 

10 (a) AMENDMENT.—Section 477(b)(4) of the Higher 

11 Education Act of 1965 (20 U.S.C. 1087qq(b)(4)) is 

12 amended to read as follows: 

13 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

14 income protection allowance is determined by the fol15 lowing table (or a successor table prescribed by the 

16 Secretary under section 478), for academic year 

17 2015–2016: 

‘‘Income Protection Allowance 

Family 

Size 

Number in College 

(including 

student) 

1 2 3 4 5 

For each 

additional 

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 ’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall take effect on July 1, 2015. 

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1 SEC. 474. UPDATED TABLES AND AMOUNTS FOR INCOME 

2 PROTECTION ALLOWANCE. 

3 (a) AMENDMENTS.—Section 478(b) of the Higher 

4 Education Act of 1965 (20 U.S.C. 1087rr(b)) is amend5 ed— 

6 (1) in paragraph (1), by striking subparagraphs 

7 (A) and (B) and inserting the following: 

8 ‘‘(A) IN GENERAL.—For each academic 

9 year after academic year 2015–2016, the Sec10 retary shall publish in the Federal Register a 

11 revised table of income protection allowances 

12 for the purpose of sections 475(c)(4) and 

13 477(b)(4), subject to subparagraphs (B) and 

14 (C). 

15 ‘‘(B) TABLE FOR INDEPENDENT STU16 DENTS.—For each academic year after aca17 demic year 2015–2016, the Secretary shall de18 velop the revised table of income protection al19 lowances by increasing each of the dollar 

20 amounts contained in the table of income pro21 tection allowances under section 477(b)(4)(D) 

22 by a percentage equal to the estimated percent23 age increase in the Consumer Price Index (as 

24 determined by the Secretary) between Decem25 ber 2014 and the December next preceding the 

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1 beginning of such academic year, and rounding 

2 the result to the nearest $10.’’; and 

3 (2) in paragraph (2), by striking ‘‘shall be de4 veloped’’ and all that follows through the period at 

5 the end and inserting ‘‘shall be developed for each 

6 academic year after academic year 2015–2016, by 

7 increasing each of the dollar amounts contained in 

8 such section for academic year 2015–2016 by a per9 centage equal to the estimated percentage increase 

10 in the Consumer Price Index (as determined by the 

11 Secretary) between December 2014 and the Decem12 ber next preceding the beginning of such academic 

13 year, and rounding the result to the nearest $10.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 subsection (a) shall take effect on July 1, 2015. 

16 SEC. 475. PRIOR PRIOR YEAR; DEFINITION OF INDE17 PENDENT STUDENT. 

18 Section 480 (20 U.S.C. 1087) is amended— 

19 (1) by striking subparagraph (B) of subsection 

20 (a)(1) and inserting the following: 

21 ‘‘(B) Notwithstanding section 478(a) and beginning 

22 not later than 180 days after the date of enactment of 

23 the Higher Education Affordability Act, the Secretary 

24 shall provide for the use of data from the second preceding 

25 tax year when and to the extent necessary to carry out 

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1 the simplification of applications (including simplification 

2 for a subset of applications) used for the estimation and 

3 determination of financial aid eligibility. Such simplifica4 tion shall include the sharing of data between the Internal 

5 Revenue Service and the Department, pursuant to the 

6 consent of the taxpayer.’’; 

7 (2) in subsection (d)— 

8 (A) in paragraph (1)(H)— 

9 (i) in the matter preceding clause (i), 

10 by striking ‘‘during the school year in 

11 which the application is submitted as ei12 ther an unaccompanied youth’’ and insert13 ing ‘‘as either an unaccompanied youth age 

14 23 or younger who is’’; 

15 (ii) in clause (i), by inserting ‘‘, or a 

16 designee of the liaison’’ after ‘‘Act’’; and 

17 (iii) in clause (ii), by striking ‘‘a pro18 gram funded under the Runaway and 

19 Homeless Youth Act’’ and inserting ‘‘an 

20 emergency or transitional shelter, street 

21 outreach program, homeless youth drop-in 

22 center, or other program serving homeless 

23 youth,’’; and 

24 (B) by adding at the end the following: 

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1 ‘‘(3) SIMPLIFYING THE DETERMINATION PROC2 ESS FOR UNACCOMPANIED YOUTH.— 

3 ‘‘(A) VERIFICATION.—A financial aid ad4 ministrator is not required to verify homeless5 ness determinations made by the individuals au6 thorized to make such determinations under 

7 clause (i), (ii), or (iii) of paragraph (1)(H) in 

8 the absence of conflicting information. A docu9 mented phone call with, or a written statement 

10 from, one of the authorized individuals is suffi11 cient verification when needed. 

12 ‘‘(B) DETERMINATION OF INDEPEND13 ENCE.—A financial aid administrator shall con14 duct the verification under paragraph (1)(H) if 

15 a student does not have, and cannot get, docu16 mentation from any of the individuals author17 ized to make such determinations under clause 

18 (i), (ii), or (iii) of paragraph (1)(H). The finan19 cial aid administrator shall make the deter20 mination of independence based on the deter21 mination of a student as an unaccompanied 

22 youth who is a homeless child or youth (as such 

23 terms are defined in section 725 of the McKin24 ney-Vento Homeless Assistance Act), or as unmstockstill on DSK4VPTVN1PROD with BILLS

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1 accompanied, at risk of homelessness, and self2 supporting, which— 

3 ‘‘(i) shall be distinct from a deter4 mination of independence described under 

5 paragraph (1)(I); and 

6 ‘‘(ii) may be based on a documented 

7 interview with the student if there is no 

8 written documentation available. 

9 ‘‘(C) DURATION OF DETERMINATION.—A 

10 student shall receive a determination under 

11 paragraph (1)(H) during the school year in 

12 which the student initially submits the applica13 tion. If a student is determined to be inde14 pendent under paragraph (1)(H), the student 

15 shall be presumed to be independent in subse16 quent years unless— 

17 ‘‘(i) the student informs the financial 

18 aid office that circumstances have changed; 

19 or 

20 ‘‘(ii) the financial aid administrator 

21 has specific conflicting information about 

22 the student’s independence.’’; and 

23 (3) by striking paragraph (5) of subsection (e) 

24 and inserting the following: 

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1 ‘‘(5) payments made and services provided 

2 under part E of title IV of the Social Security Act, 

3 including the value of vouchers for education and 

4 training made available under section 477 of such 

5 Act, and any payments made directly to youth as 

6 part of an extended foster care program pursuant to 

7 such part E; and’’. 

8 PART G—GENERAL PROVISIONS 

9 SEC. 481. DEFINITIONS. 

10 Section 481 (20 U.S.C. 1088) is amended— 

11 (1) by striking subsection (d); 

12 (2) in the subsection heading of subsection (f), 

13 by striking ‘‘DEFINITION OF’’; 

14 (3) by redesignating subsections (b), (c), (e), 

15 and (f) as subsections (f), (m), (c), and (d), respec16 tively, and transferring such subsections to be in al17 phabetical order based on subsection designation; 

18 (4) by inserting after subsection (a) the fol19 lowing: 

20 ‘‘(b) COMMISSION, BONUS, OR OTHER INCENTIVE

21 PAYMENT.—For purposes of this title, the term ‘commis22 sion, bonus, or other incentive payment’ means a sum of 

23 money or something of value, other than a fixed salary 

24 or wages, paid to or given to a person or an entity for 

25 services rendered.’’; 

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1 (5) by inserting after subsection (d), as redesig2 nated and transferred by paragraph (3), the fol3 lowing: 

4 ‘‘(e) ELIGIBLE MILITARY SERVICE.— 

5 ‘‘(1) IN GENERAL.—The term ‘eligible military 

6 service’— 

7 ‘‘(A) in the case of a member of a regular 

8 component of the Armed Forces, means full9 time duty in the Armed Forces, other than ac10 tive duty for training (as defined in section 101 

11 of title 38, United States Code) of 30 days or 

12 less; 

13 ‘‘(B) in the case of a member of the re14 serve components of the Armed Forces, means 

15 service on active duty under a call or order to 

16 active duty under— 

17 ‘‘(i) section 688, 12302, 12304, or 

18 12322 of title 10, United States Code; 

19 ‘‘(ii) subsection (a), (d), or (g) of sec20 tion 12301 of title 10, United States Code; 

21 or 

22 ‘‘(iii) section 712 of title 14, United 

23 States Code; 

24 ‘‘(C) in the case of a member of the Army 

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1 tional Guard of the United States, means, in 

2 addition to service described in subparagraph 

3 (B), full-time service— 

4 ‘‘(i) in the National Guard of a State 

5 for the purpose of organizing, admin6 istering, recruiting, instructing, or training 

7 the National Guard; or 

8 ‘‘(ii) in the National Guard under sec9 tion 502(f) of title 32, United States Code, 

10 when authorized by the President or the 

11 Secretary of Defense for the purpose of re12 sponding to a national emergency declared 

13 by the President and supported by Federal 

14 funds; and 

15 ‘‘(D) in the case of a servicemember who 

16 is a commissioned officer of the Public Health 

17 Service or the National Oceanic and Atmos18 pheric Administration, active service. 

19 ‘‘(2) EXCLUSIONS.—The term ‘eligible military 

20 service’ does not include any period during which an 

21 individual— 

22 ‘‘(A) was assigned full-time by the Armed 

23 Forces to a civilian institution for a course of 

24 education that was substantially the same as 

25 established courses offered to civilians; 

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1 ‘‘(B) serves as a cadet or midshipman at 

2 one of the military service academies of the 

3 United States; or 

4 ‘‘(C) serves under the provisions of section 

5 12103(d) of title 10, United States Code, pur6 suant to an enlistment in the Army National 

7 Guard or the Air National Guard, or as a Re8 serve for service in the Army Reserve, Navy Re9 serve, Air Force Reserve, Marine Corps Re10 serve, or Coast Guard Reserve.’’; 

11 (6) by inserting after subsection (f), as redesig12 nated and transferred by paragraph (3), the fol13 lowing: 

14 ‘‘(g) INSTITUTION AFFILIATE.—For purposes of this 

15 title, the term ‘institution affiliate’ means any person or 

16 entity that controls, is controlled by, or is under common 

17 control with, an institution of higher education. 

18 ‘‘(h) MILITARY ORDERS.—For purposes of this title, 

19 the term ‘military orders’, when used with respect to a 

20 member of the Armed Forces, means official military or21 ders, or any notification, certification, or verification from 

22 the member’s commanding officer, with respect to the 

23 member’s current or future military duty status. 

24 ‘‘(i) REVENUE-SHARING ARRANGEMENT.—For pur25 poses of this title, the term ‘revenue-sharing arrangement’ 

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1 means an arrangement between an institution of higher 

2 education and third party under which— 

3 ‘‘(1) the third party provides, exclusively or 

4 nonexclusively, educational products or services to 

5 prospective students or students attending the insti6 tution of higher education; and 

7 ‘‘(2) the third party or institution of higher 

8 education pays a fee or provides other material bene9 fits, including revenue- or profit-sharing, to the in10 stitution of higher education or third party in con11 nection with the educational products or services 

12 provided to prospective students or students attend13 ing the institution of higher education. 

14 ‘‘(j) SECURING ENROLLMENTS OR SECURING OR

15 AWARDING FINANCIAL AID.— 

16 ‘‘(1) IN GENERAL.—For purposes of this title, 

17 the term ‘securing enrollments or securing or award18 ing financial aid’— 

19 ‘‘(A) means any activity carried out by a 

20 person or entity for the purpose of the admis21 sion or matriculation of a student to an institu22 tion of higher education or the award of finan23 cial aid to a student that occurs at any time 

24 until the student has completed the student’s 

25 educational program at an institution; 

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1 ‘‘(B) includes contact in any form with a 

2 prospective student, such as contact through 

3 preadmission or advising activities, scheduling 

4 an appointment to visit the enrollment office or 

5 any other office of the institution, attendance at 

6 such an appointment, or involvement in a pro7 spective student’s signing of an enrollment 

8 agreement or financial aid application; and 

9 ‘‘(C) does not include making a payment 

10 to a third party for the provision of student 

11 contact information for prospective students, as 

12 long as such payment is not based on— 

13 ‘‘(i) any additional conduct or action 

14 by the third party or any prospective stu15 dent, such as participation in preadmission 

16 or advising activities, scheduling an ap17 pointment to visit the enrollment office or 

18 any other office of the institution or at19 tendance at such an appointment, or the 

20 signing, or being involved in the signing, of 

21 a prospective student’s enrollment agree22 ment or financial aid application; or 

23 ‘‘(ii) the number of students (cal24 culated at any point in time of an edu25 cational program) who apply for enrollmstockstill on DSK4VPTVN1PROD with BILLS

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1 ment, are awarded financial aid, or are en2 rolled for any period of time, including 

3 through completion of an educational pro4 gram. 

5 ‘‘(k) SERVICE PROVIDER.—For purposes of this title, 

6 the term ‘service provider’ means any State, person, or 

7 entity that enters into a contract with an eligible institu8 tion to administer any aspect of the institution’s participa9 tion in any program under this title, including— 

10 ‘‘(1) securing enrollments or securing or award11 ing financial aid; 

12 ‘‘(2) student performance in educational 

13 coursework; 

14 ‘‘(3) student graduation; 

15 ‘‘(4) job placement of students; or 

16 ‘‘(5) any other academic facet of a student’s en17 rollment in an institution of higher education. 

18 ‘‘(l) STUDENT DEFAULT RISK.—For purposes of this 

19 title, the term ‘student default risk’ means a risk that is 

20 reflected as a percentage that is calculated by taking an 

21 institution’s 3-year cohort default rate, as defined in sec22 tion 435(m), for the most recent fiscal year available, and 

23 multiplying it by the percentage of students enrolled at 

24 such institution receiving a Federal student loan author25 ized under this title during the previous academic year.’’. 

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1 SEC. 482. STANDARD NOTIFICATION FORMAT FOR DELIN2 QUENT BORROWERS; EXPLANATION OF BEN3 EFITS OF FEDERAL LOANS. 

4 Part G of title IV (20 U.S.C. 1088 et seq.) is amend5 ed by inserting after section 483 the following: 

6 ‘‘SEC. 483A. STANDARD NOTIFICATION FORMAT FOR DELIN7 QUENT BORROWERS; EXPLANATION OF BEN8 EFITS OF FEDERAL LOANS. 

9 ‘‘(a) STANDARD NOTIFICATION FORMAT FOR DELIN10 QUENT BORROWERS.— 

11 ‘‘(1) IN GENERAL.—The Secretary, in consulta12 tion with the Director of the Bureau of Consumer 

13 Financial Protection, shall develop and submit for 

14 consumer testing in accordance with section 483C, a 

15 standard format to be used to notify, by writing and 

16 by telephone, any borrower who is delinquent, or at 

17 risk of becoming delinquent, on loans made, insured, 

18 or guaranteed under part B or D of the borrower’s 

19 repayment options, including deferment, forbear20 ance, the income-based repayment plan available 

21 under section 493C, loan forgiveness opportunities, 

22 and, if applicable, the possibility for loan discharge. 

23 ‘‘(2) CONTENTS.—To the extent practicable, 

24 the information provided through the standard for25 mat to borrowers described in paragraph (1) shall 

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1 ated with the available repayment plans in a format 

2 that allows the borrower to compare the borrower’s 

3 current repayment plan with the alternatives. 

4 ‘‘(b) EXPLANATION OF THE BENEFITS OF FEDERAL

5 LOANS.—The Secretary, in consultation with the Director 

6 of the Bureau of Consumer Financial Protection, shall 

7 prepare and make available to eligible institutions, for dis8 closure in accordance with section 485(l)(2)(L)(ii), a writ9 ten explanation of the benefits that are unique to Federal 

10 student loans (including repayment plans, loan forgive11 ness, and loan deferment) and a description of the loan 

12 terms that borrowers should examine carefully if consid13 ering a private education loan.’’. 

14 SEC. 483. INSTITUTIONAL FINANCIAL AID AWARD LETTER. 

15 (a) IN GENERAL.—Part G of title IV (20 U.S.C. 

16 1088 et seq.) is further amended by inserting after section 

17 483A, as added by section 482, the following: 

18 ‘‘SEC. 483B. INSTITUTIONAL FINANCIAL AID AWARD LET19 TERS. 

20 ‘‘(a) STANDARD FORMAT.—The Secretary, in con21 sultation with the heads of relevant Federal agencies, shall 

22 develop a standard format for financial aid award letters 

23 based on recommendations from representatives of stu24 dents, students’ families, institutions of higher education, 

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1 secondary school and postsecondary education counselors, 

2 and nonprofit consumer groups. 

3 ‘‘(b) KEY REQUIRED CONTENTS FOR FINANCIAL AID

4 AWARD LETTERS.—The standard format developed under 

5 subsection (a) shall include, in a consumer-friendly man6 ner that is simple and understandable, the following items 

7 clearly separated from each other and listed on the first 

8 page of the financial aid award letter in either electronic 

9 or written format: 

10 ‘‘(1) Information on the student’s cost of at11 tendance based on the most current costs for the 

12 academic period covered by the financial aid award 

13 letter, including the following expenses (as deter14 mined under section 472): 

15 ‘‘(A) Tuition and fees. 

16 ‘‘(B) Room and board costs. 

17 ‘‘(C) Books and supplies. 

18 ‘‘(D) Transportation. 

19 ‘‘(E) Miscellaneous personal expenses. 

20 ‘‘(2)(A) The amount of financial aid that the 

21 student would not have to repay, such as scholar22 ships, grant aid offered under this title, or grant aid 

23 offered by the institution, a State, or an outside 

24 source to the student for such academic period; 

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1 ‘‘(B) a disclosure that such financial aid does 

2 not have to be repaid and whether the student can 

3 expect to receive similar amounts of such financial 

4 aid for each academic period the student is enrolled 

5 at the institution; and 

6 ‘‘(C) in the case of any institution that has a 

7 policy or practice of front-loading grant aid, a disclo8 sure of that practice and that the student may re9 ceive less grant aid in future academic terms. 

10 ‘‘(3) The net price that the student, or the stu11 dent’s family on behalf of the student, will have to 

12 pay for the student to attend the institution for such 

13 academic period, equal to the difference between— 

14 ‘‘(A) the cost of attendance as described in 

15 paragraph (1) for the student for such aca16 demic period; and 

17 ‘‘(B) the amount of financial aid described 

18 in paragraph (2) that is included in the finan19 cial aid award letter. 

20 ‘‘(4) The amount of work study assistance, in21 cluding such assistance available under part C, the 

22 likelihood of finding employment opportunities on 

23 campus, and a disclosure that the aid must be 

24 earned by the student and the assistance offered is 

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1 subject to the availability of employment opportuni2 ties. 

3 ‘‘(5) The types and amounts of loans under 

4 part D or E that the institution recommends for the 

5 student for such academic period, including— 

6 ‘‘(A) a disclosure that such loans have to 

7 be repaid; 

8 ‘‘(B) a disclosure that the student can bor9 row a lesser amount than the recommended 

10 loan amount; 

11 ‘‘(C) a clear use of the word ‘loan’ to de12 scribe the recommended loan amounts; 

13 ‘‘(D) personalized information showing es14 timates of the borrower’s anticipated monthly 

15 payments and the difference in total interest 

16 paid and total payments under each plan; 

17 ‘‘(E) a disclosure that Federal loans can18 not be discharged in bankruptcy except in cases 

19 of extreme or undue hardship; and 

20 ‘‘(F) a disclosure that the student may be 

21 eligible for longer repayment terms, such as ex22 tended or income-based repayment plans, and 

23 that longer repayment terms may result in the 

24 student paying more money over the life of the 

25 loans. 

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1 ‘‘(6) Where a student or the student’s family 

2 can seek additional information regarding the finan3 cial aid offered, including contact information for 

4 the institution’s financial aid office and the Depart5 ment’s website on financial aid. 

6 ‘‘(7) A disclosure that Federal student loans 

7 offer generally more favorable terms and beneficial 

8 repayment options than private education loans so 

9 students should examine available Federal student 

10 loan options before applying for private education 

11 loans, and an explanation to be written by the Sec12 retary, in consultation with the heads of relevant 

13 Federal agencies of— 

14 ‘‘(A) the benefits unique to Federal stu15 dent loans, including various repayment plans, 

16 loan forgiveness, and loan deferment; and 

17 ‘‘(B) the loan terms and conditions to ex18 amine carefully, if considering a private edu19 cation loan. 

20 ‘‘(8) The deadline and summary of the process, 

21 if any, for accepting the financial aid offered in the 

22 financial aid award letter. 

23 ‘‘(9) The academic period covered by the finan24 cial aid award letter and a clear indication whether 

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1 the aid offered is based on full-time or part-time en2 rollment. 

3 ‘‘(10) With respect to institutions where more 

4 than 30 percent of enrolled students borrow loans to 

5 pay for their education, the institution’s most recent 

6 cohort default rate, as defined in section 435(m), 

7 compared to the most recent national average cohort 

8 default rate. 

9 ‘‘(11) Any other information the Secretary, in 

10 consultation with the heads of relevant Federal 

11 agencies, determines necessary so that students and 

12 parents can make informed loan borrowing decisions, 

13 including quality metrics such as percentage of stu14 dents at the institution who take out student loans 

15 and average debt at graduation for students at the 

16 institution. 

17 ‘‘(c) OTHER REQUIRED CONTENTS FOR THE FINAN18 CIAL AID AWARD LETTER.—The standard format for a 

19 financial aid award letter developed under subsection (a) 

20 shall also include the following information, in a concise 

21 format determined by the Secretary, in consultation with 

22 the heads of relevant Federal agencies: 

23 ‘‘(1) A concise summary of the terms and con24 ditions of financial aid recommended under para25 graphs (2), (4), and (5) of subsection (b), and a 

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1 method to provide students with additional informa2 tion about such terms and conditions, such as links 

3 to the supplementary information. 

4 ‘‘(2) At the institution’s discretion, additional 

5 options for paying for the net price amount listed in 

6 subsection (b)(3), such as the amount recommended 

7 to be paid by the student or student’s family, Fed8 eral Direct PLUS Loans, or private education loans. 

9 If the institution recommends private education 

10 loans, the financial aid award letter shall contain the 

11 additional following general disclosures: 

12 ‘‘(A) The availability of, and the student’s 

13 potential eligibility for, additional Federal fi14 nancial assistance under this title. 

15 ‘‘(B) The impact of a proposed private 

16 education loan on the student’s potential eligi17 bility for other financial assistance, including 

18 Federal financial assistance under this title. 

19 ‘‘(C) The student’s ability to select a pri20 vate educational lender of the student’s choice. 

21 ‘‘(D) The student’s right to accept or re22 ject a private education loan within the 30-day 

23 period following a private educational lender’s 

24 approval of a student’s application and a stu25 dent’s 3-day right-to-cancel period. 

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1 ‘‘(E) With respect to dependent students, 

2 any reference to private education loans shall be 

3 accompanied by information about the rec4 ommended family contribution and the avail5 ability of, and terms and conditions associated 

6 with, Federal Direct PLUS Loans for the stu7 dent’s parents regardless of family income, and 

8 of the student’s increased eligibility for Federal 

9 student loans under this title if the student’s 

10 parents are not able to borrow under the Fed11 eral Direct PLUS Loan program. 

12 ‘‘(3) The following disclosures: 

13 ‘‘(A) That the financial aid award letter 

14 only contains information for 1 academic period 

15 and the financial aid offered in following aca16 demic periods may change, unless the institu17 tion is offering aid that covers multiple aca18 demic periods. 

19 ‘‘(B) How non-institutional scholarships 

20 awarded to the student affect the financial aid 

21 package offered to the student. 

22 ‘‘(C) A concise summary of any Federal or 

23 institutional conditions required to receive and 

24 renew financial aid and a method to provide 

25 students with additional information about 

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1 these conditions, such as links to the supple2 mentary information. 

3 ‘‘(d) ADDITIONAL REQUIREMENTS FOR FINANCIAL

4 AID AWARD LETTER.—In addition to the requirements 

5 listed under subsections (b) and (c), the financial aid 

6 award letter shall meet the following requirements: 

7 ‘‘(1) Clearly distinguish between the aid offered 

8 under paragraphs (2), (4), and (5) of subsection (b), 

9 by including a subtotal for the aid offered in each 

10 of such paragraphs and by refraining from commin11 gling the different types of aid described in such 

12 paragraphs. 

13 ‘‘(2) Use standard definitions and names for 

14 the terms described in subsection (b) that are devel15 oped by the Secretary in consultation with the heads 

16 of relevant Federal agencies, representatives of insti17 tutions of higher education, nonprofit consumer 

18 groups, students, and secondary school and higher 

19 education guidance counselors, not later than 3 

20 months after the date of enactment of the Higher 

21 Education Affordability Act. 

22 ‘‘(3) If an institution’s recommended Federal 

23 student loan aid offered under subsection (b)(5) is 

24 less than the maximum amount of Federal assist25 ance available to the student under parts D and E, 

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1 provide additional information on Federal student 

2 loans, including the types and amounts for which the 

3 student is eligible in an attached document or 

4 webpage. 

5 ‘‘(4) Use standard formatting and design to en6 sure— 

7 ‘‘(A) that figures described in paragraphs 

8 (1) through (5) of subsection (b) are in the 

9 same font, appear in the same order, and are 

10 displayed prominently on the first page of the 

11 financial aid award letter whether produced in 

12 written or electronic format; and 

13 ‘‘(B) that the other information required 

14 in subsections (b) and (c) appears in a standard 

15 format and design on the financial aid award 

16 letter. 

17 ‘‘(5) Include an attestation that the student has 

18 accessed and read the financial aid award letter, if 

19 provided to the student in electronic format. 

20 ‘‘(6) Include language developed by the Sec21 retary, in consultation with the heads of relevant 

22 Federal agencies, notifying eligible students that 

23 they may be eligible for education benefits, and 

24 where they can locate more information about such 

25 benefits, described in the following provisions: 

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1 ‘‘(A) Chapter 30, 31, 32, 33, 34, or 35 of 

2 title 38, United States Code. 

3 ‘‘(B) Chapter 101, 105, 106A, 1606, 1607, 

4 or 1608 of title 10, United States Code. 

5 ‘‘(C) Section 1784a, 2005, or 2007 of title 

6 10, United States Code. 

7 ‘‘(e) ADDITIONAL INFORMATION.—Nothing in this 

8 section shall preclude an institution from supplementing 

9 the financial aid award letter with additional information 

10 as long as such additional information supplements the fi11 nancial aid award letter and is not located on the financial 

12 aid award letter, except as provided in subsection (c)(2). 

13 ‘‘(f) CONSUMER TESTING.—The financial aid award 

14 letter under this section shall undergo consumer testing 

15 in accordance with section 483C. The Secretary, in con16 sultation with the heads of relevant Federal agencies, rep17 resentatives of institutions of higher education, nonprofit 

18 consumer groups, students, and secondary school and 

19 higher education guidance counselors, shall develop mul20 tiple designs and formatting, subject to the requirements 

21 of subsection (d)(4), of the financial aid award letter to 

22 be used for consumer testing not later than 6 months after 

23 the date of enactment of the Higher Education Afford24 ability Act.’’. 

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1 (b) CONFORMING AMENDMENT.—Section 484 of the 

2 Higher Education Opportunity Act (20 U.S.C. 1092 note) 

3 is repealed. 

4 SEC. 483A. CONSUMER TESTING. 

5 Part G of title IV (20 U.S.C. 1088 et seq.) is further 

6 amended by inserting after section 483B, as added by sec7 tion 483, the following: 

8 ‘‘SEC. 483C. CONSUMER TESTING. 

9 ‘‘(a) ESTABLISHMENT OF CONSUMER TESTING

10 PROCESS.—Not later than 6 months after the date of en11 actment of the Higher Education Affordability Act, and 

12 every 5 years thereafter, the Secretary shall establish, in 

13 consultation with the heads of relevant Federal agencies, 

14 a process for consumer testing each of the following: 

15 ‘‘(1) The universal net price calculator estab16 lished under section 132(h)(7). 

17 ‘‘(2) The College Scorecard established under 

18 section 133. 

19 ‘‘(3) The initial model form of postsecondary 

20 education information required under section 

21 405A(g) for the initial consumer testing, and the 

22 postsecondary education information form under sec23 tion 405A(h) for all subsequent consumer testing. 

24 ‘‘(4) The initial model form of postsecondary 

25 education information required under section 

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1 405B(g) for the initial consumer testing, and the 

2 postsecondary education information form under sec3 tion 405B(h) for all subsequent consumer testing. 

4 ‘‘(5) The master promissory note. 

5 ‘‘(6) The standard notification format for bor6 rowers who are delinquent or at risk of being delin7 quent under section 483A. 

8 ‘‘(7) The institutional financial aid award letter 

9 required under section 483B. 

10 ‘‘(8) The methodology for comparing institu11 tions based on the speed-based repayment rate 

12 under section 483D(c)(4)(A). 

13 ‘‘(9) Online entrance, exit, and interim loan 

14 counseling tools, including the Department of Edu15 cation’s Financial Awareness Counseling Tool and 

16 other online tools that may be used, and any disclo17 sures that may be provided, during the counseling 

18 that is required under subsections (b), (l), and (n) 

19 of section 485. 

20 ‘‘(10) The personalized periodic statement re21 quired for borrowers who are automatically enrolled 

22 into an income-based repayment plan under section 

23 493C(d)(1)(D). 

24 ‘‘(11) Any consent form or any online tool re25 quired for consent of borrowers with $0 payment 

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1 under paragraph (1)(C)(ii)(II) or (3)(B) of section 

2 493C(d). 

3 ‘‘(b) PARTICIPANTS IN CONSUMER TESTING.—The 

4 consumer testing process for a product described in sub5 section (a) shall include, as the Secretary determines nec6 essary for the product— 

7 ‘‘(1) representatives of students (including low8 income students, first generation college students, 

9 students underrepresented in higher education (in10 cluding students from ethnic and racial minorities), 

11 adult students, and prospective students); 

12 ‘‘(2) students’ families (including low-income 

13 families, families with first generation college stu14 dents, families with students who are underrep15 resented in higher education (including students 

16 from ethnic and racial minorities), and families with 

17 prospective students); 

18 ‘‘(3) representatives of institutions of higher 

19 education, including faculty; 

20 ‘‘(4) secondary school and postsecondary edu21 cation counselors; 

22 ‘‘(5) postsecondary financial aid officers; and 

23 ‘‘(6) nonprofit consumer groups. 

24 ‘‘(c) USE OF CONSUMER TESTING RESULTS.—The 

25 Secretary shall use the results of the consumer testing in 

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1 the final development of each product described in sub2 section (a), and may modify the definitions, terms, for3 matting, and design of any product tested under this sec4 tion based on the results of the consumer testing before 

5 finalizing the product. 

6 ‘‘(d) REPORT TO CONGRESS.—Not later than 3 

7 months after the date any consumer testing under this 

8 section concludes, the Secretary shall submit to the au9 thorizing committees a report that contains the results of 

10 such consumer testing.’’. 

11 SEC. 483B. LOAN REPAYMENT RATE AND SPEED-BASED RE12 PAYMENT RATE. 

13 Part G of title IV (20 U.S.C. 1088 et seq.) is further 

14 amended by inserting after section 483C, as added by sec15 tion 484, the following: 

16 ‘‘SEC. 483D. LOAN REPAYMENT RATE AND SPEED-BASED 

17 REPAYMENT RATE. 

18 ‘‘(a) DEFINITIONS.—In this section: 

19 ‘‘(1) AMOUNT PAID.—The term ‘amount paid’, 

20 when used with respect to a covered Federal student 

21 loan, means the amount paid of the outstanding bal22 ance, calculated by determining the difference be23 tween the original outstanding balance on the loan 

24 and the current loan balance on the loan. 

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1 ‘‘(2) COHORT LOAN.—The term ‘cohort loan’, 

2 when used with respect to an institution, means a 

3 covered Federal student loan in the 2-year loan re4 payment cohort identified for the institution under 

5 subsection (b)(2) for a fiscal year. 

6 ‘‘(3) COVERED FEDERAL STUDENT LOAN.—The 

7 term ‘covered Federal student loan’ means— 

8 ‘‘(A) a loan made, insured, or guaranteed 

9 under part B or D that is issued to a student 

10 borrower; or 

11 ‘‘(B) the portion of a loan made under sec12 tion 428C or a Federal Direct Consolidation 

13 Loan that is used to repay a loan described in 

14 subparagraph (A). 

15 ‘‘(4) CURRENT LOAN BALANCE.—The term 

16 ‘current loan balance’ means the sum of the current 

17 outstanding balance due on a covered Federal stu18 dent loan, as of the date on which a rate determina19 tion under this section is being made, plus the ac20 crued and unpaid interest balance on the loan as of 

21 such date. 

22 ‘‘(5) ORIGINAL OUTSTANDING BALANCE.—The 

23 term ‘original outstanding balance’, when used with 

24 respect to a covered Federal student loan, means the 

25 total amount of the outstanding balance of the loan, 

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1 including capitalized interest and any unpaid ac2 crued interest that has not been capitalized, as of 

3 the date that the loan entered repayment. 

4 ‘‘(6) PAYMENTS-MADE LOAN.—The term ‘pay5 ments-made loan’ means a covered Federal student 

6 loan that has never been in default (or, in the case 

7 of a loan described in paragraph (3)(B), neither the 

8 consolidation loan nor any underlying loan have ever 

9 been in default), where— 

10 ‘‘(A) payments made by a borrower during 

11 the most recently completed fiscal year reduce 

12 the outstanding balance of the loan (which, in 

13 the case of a loan described in paragraph 

14 (3)(B), shall be deemed to mean reducing the 

15 outstanding balance of the entire consolidation 

16 loan) to an amount that is less than the out17 standing balance of the loan at the beginning of 

18 that fiscal year; or 

19 ‘‘(B) the borrower of the loan is in the 

20 process of qualifying for public service loan for21 giveness under section 455(m) and submits an 

22 employment certification to the Secretary that 

23 demonstrates the borrower is engaged in a pub24 lic service job and the borrower made qualifying 

25 payments, as determined under such section, on 

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1 the loan during the most recently completed fis2 cal year. 

3 ‘‘(b) LOAN REPAYMENT RATE.— 

4 ‘‘(1) METHOD OF CALCULATION.—Each fiscal 

5 year, the Secretary shall determine the loan repay6 ment rate for each institution of higher education 

7 that is participating in a program under this title or 

8 seeking to regain eligibility to participate in a pro9 gram under this title by using the loan cohort identi10 fied under paragraph (2) to calculate the loan repay11 ment rate, in accordance with paragraph (3). 

12 ‘‘(2) DETERMINATION OF LOAN COHORT.— 

13 ‘‘(A) IN GENERAL.—For purposes of calcu14 lating the loan repayment rate for a fiscal year 

15 under this subsection, the 2-year loan repay16 ment cohort for an institution of higher edu17 cation shall consist of all covered Federal stu18 dent loans of the institution that are in their 

19 third year of repayment or in their fourth year 

20 of repayment, except as provided in subpara21 graph (B). 

22 ‘‘(B) SPECIAL RULES AND EXCLUSIONS.— 

23 ‘‘(i) SPECIAL RULE FOR MEDICAL AND

24 DENTAL STUDENTS.—Notwithstanding 

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1 dent loan for any borrower who is a profes2 sional or graduate student enrolled in a 

3 program of study that requires a medical 

4 internship or residency shall be included in 

5 the loan cohort when the loan is in its 

6 sixth and seventh years of repayment. 

7 ‘‘(ii) EXCLUSIONS.—The Secretary 

8 shall exclude from a loan cohort for a fis9 cal year any covered Federal student loan 

10 that would otherwise qualify, if the loan— 

11 ‘‘(I) was discharged under sub12 section (a)(1) or (d) of section 437 as 

13 a result of the death of the borrower; 

14 or 

15 ‘‘(II) was assigned or transferred 

16 to the Secretary and is being consid17 ered for discharge as a result of the 

18 total and permanent disability of the 

19 borrower, or was discharged by the 

20 Secretary on that basis, under section 

21 437(a). 

22 ‘‘(iii) TREATMENT OF DEFERMENTS

23 AND FORBEARANCE.— 

24 ‘‘(I) IN GENERAL.—The Sec25 retary shall treat any period during 

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1 which a covered Federal student loan 

2 is in deferment or forbearance under 

3 this title as a period of repayment for 

4 purposes of this subsection, except as 

5 provided in subclause (II). 

6 ‘‘(II) EXCEPTION FOR IN-SCHOOL

7 DEFERMENT.—The Secretary shall 

8 not include any period during which 

9 payments on a covered Federal stu10 dent loan are deferred under section 

11 428(b)(1)(M)(i), 428B(d)(1)(A)(i), or 

12 455(f)(2)(A) in determining the bor13 rower’s period of repayment for pur14 poses of paragraph (1), subject to 

15 subclause (III). 

16 ‘‘(III) NO EXCEPTION FOR CER17 TAIN SHORT TERM PROGRAMS OF

18 STUDY.—Subclause (II) shall not 

19 apply in any case where a deferral de20 scribed in such subclause is due to a 

21 borrower’s enrollment, after comple22 tion of the program for which the loan 

23 was made, in a program of study of 

24 less than 6 months in duration. 

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1 ‘‘(iv) TREATMENT OF CONSOLIDATION

2 LOANS.—For each covered Federal student 

3 loan that is a loan described in subsection 

4 (a)(3)(B), the Secretary shall— 

5 ‘‘(I) determine the original out6 standing balance for each original cov7 ered Federal student loan that com8 prises the consolidation loan; 

9 ‘‘(II) determine the date that the 

10 repayment period began, in accord11 ance with this subparagraph, for each 

12 such original loan; 

13 ‘‘(III) include, in determining the 

14 duration of the repayment period 

15 under this paragraph for the under16 lying loan, the period during which 

17 the original loan was in repayment 

18 and the period during which the con19 solidation loan was in repayment; and 

20 ‘‘(IV) include the amount deter21 mined under subclause (I) for each 

22 underlying loan in the calculations 

23 under this paragraph for the appro24 priate fiscal year based on the repay25 ment period for the underlying loan. 

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1 ‘‘(3) FORMULA FOR LOAN REPAYMENT RATE.— 

2 ‘‘(A) IN GENERAL.—For purposes of this 

3 section, the loan repayment rate for an institu4 tion for a fiscal year shall be equal to the pro5 portion that— 

6 ‘‘(i) the sum of— 

7 ‘‘(I) the total original out8 standing balance of all covered Fed9 eral student loans in the loan cohort 

10 of the institution for such fiscal year 

11 that are paid in full in accordance 

12 with subparagraph (B); and 

13 ‘‘(II) the total original out14 standing balance of all payments15 made loans in the loan cohort for such 

16 year; bears to 

17 ‘‘(ii) the total original outstanding 

18 balance of all loans in the loan cohort for 

19 such year. 

20 ‘‘(B) LOANS PAID IN FULL.— 

21 ‘‘(i) IN GENERAL.—For purposes of 

22 paragraph (1)(A), a loan paid in full is a 

23 covered Federal student loan in the loan 

24 cohort that— 

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1 ‘‘(I) has never been in default (or 

2 in the case of a loan described in sub3 section (a)(3)(B), neither the consoli4 dation loan nor any original loan com5 prising the consolidation loan has ever 

6 been in default); and 

7 ‘‘(II) has been paid in full by a 

8 borrower. 

9 ‘‘(ii) CONSOLIDATION LOANS AND RE10 FINANCING.—A covered Federal student 

11 loan described in subsection (a)(3)(B) or 

12 consolidated under another refinancing 

13 process provided for under this Act, is not 

14 counted as a loan paid in full for purposes 

15 of this subparagraph until the consolida16 tion loan or other financial instrument is 

17 paid in full by the borrower. 

18 ‘‘(4) PUBLICATION.—The Secretary shall make 

19 the loan repayment rate for each institution of high20 er education participating in a program under this 

21 title or seeking to regain eligibility to participate in 

22 a program under this title publicly available on the 

23 College Navigator website of the Department, or any 

24 successor website, and the website for the National 

25 Center for Education Statistics. 

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1 ‘‘(c) SPEED-BASED REPAYMENT RATE.— 

2 ‘‘(1) PURPOSE.—The purpose of the speed3 based repayment rate under this subsection is to 

4 provide an estimate of— 

5 ‘‘(A) the annual rate at which student bor6 rowers at an institution of higher education are 

7 repaying their loans under part B and D; and 

8 ‘‘(B) the total expected time it takes stu9 dent borrowers to repay their loans. 

10 ‘‘(2) IN GENERAL.—In order to provide addi11 tional information regarding loan repayment, the 

12 Secretary shall, for each fiscal year— 

13 ‘‘(A) determine the speed-based repayment 

14 rate for each institution of higher education 

15 that is participating in a program under this 

16 title or seeking to regain eligibility to partici17 pate in a program under this title; 

18 ‘‘(B) determine the information required 

19 for the comparison methodology established by 

20 the Secretary under paragraph (4); and 

21 ‘‘(C) publish the most recently available 

22 speed-based repayment rate and the comparison 

23 information under paragraph (4) for each such 

24 institution on the College Scorecard, in accord25 ance with section 133(d)(3), and on the College 

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1 Affordability and Transparency Center website, 

2 or any successor website, of the Department. 

3 ‘‘(3) DETERMINATION OF SPEED-BASED REPAY4 MENT RATE.—In order to provide additional infor5 mation regarding loan repayment and determine the 

6 speed-based repayment rate required under para7 graph (2)(A) for an institution of higher education, 

8 the Secretary shall, for each fiscal year— 

9 ‘‘(A) determine the percentage paid of the 

10 total original outstanding balance of all cohort 

11 loans of the institution for the fiscal year (in12 cluding, for purposes of calculating the speed13 based repayment rate only, all loans that would 

14 be cohort loans for such fiscal year if the loans 

15 were not in delinquency, forbearance, 

16 deferment, or default) for which the determina17 tion is being made, by dividing— 

18 ‘‘(i) the amount paid of all such co19 hort loans of the institution for such year; 

20 by 

21 ‘‘(ii) the total original outstanding 

22 balance of all such cohort loans of the in23 stitution for such year; and 

24 ‘‘(B) divide such percentage by the average 

25 number of years in repayment for the cohort 

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1 loans of the institution, rounded to the nearest 

2 month and weighted based on the dollar 

3 amount of the current loan balance of each co4 hort loan. 

5 ‘‘(4) COMPARISON METHODOLOGY FOR DISCLO6 SURE PURPOSES.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 establish a methodology for comparing similar 

9 institutions of higher education based on the 

10 speed-based repayment rate. The methodology 

11 shall— 

12 ‘‘(i) use clear and understandable 

13 terms, such as ‘quickly’ and ‘slowly’, to in14 dicate the relative significance of the 

15 speed-based repayment rate of an institu16 tion of higher education; 

17 ‘‘(ii) include a projection of the ex18 pected time for the average borrower in the 

19 loan cohort described in paragraph (3)(A) 

20 of each institution to complete repayment 

21 at each institution, based on the speed22 based repayment rate; 

23 ‘‘(iii) include a comparison of each in24 stitution’s expected time of repayment 

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1 under clause (ii) with the expected times of 

2 repayment for similar institutions; 

3 ‘‘(iv) not disaggregate the compari4 sons based on status as a public, private 

5 nonprofit, or proprietary institution of 

6 higher education; 

7 ‘‘(v) distinguish the overall speed8 based repayment rate of an institution 

9 from the speed-based repayment rate of all 

10 professional degree programs of the insti11 tution; and 

12 ‘‘(vi) calculate a separate speed-based 

13 repayment rate for each program at an in14 stitution that is subject to gainful employ15 ment regulations under section 668.7 of 

16 title 34, Code of Federal Regulations. 

17 ‘‘(B) CONSUMER TESTING.—The Secretary 

18 shall submit the methodology described in sub19 paragraph (A) for consumer testing in accord20 ance with section 483C. 

21 ‘‘(5) GUIDANCE AND REGULATIONS.—The Sec22 retary may issue guidance and promulgate rules for 

23 the purposes of determining the speed-based repay24 ment rate. 

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1 ‘‘(6) AUTHORITY TO ADJUST FORMULA.—Not2 withstanding any other provision of this section, the 

3 Secretary may adjust the formula for calculating the 

4 speed-based repayment rate under paragraphs (2) 

5 and (3) to provide a more informative and accurate 

6 measure of the speed of repayment. 

7 ‘‘(d) PUBLICATION OF STUDENT DEFAULT RISK.— 

8 Each year, the Secretary shall publish the student default 

9 risk for each institution for the most recent fiscal year 

10 on the website of the National Center for Education Sta11 tistics.’’. 

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

13 Part G of title IV (20 U.S.C. 1088 et seq.) is further 

14 amended by inserting after section 483C, as added by sec15 tion 485, the following: 

16 ‘‘SEC. 483E. ONE-TIME FAFSA PILOT PROGRAM. 

17 ‘‘(a) PURPOSES.—The purposes of this section are— 

18 ‘‘(1) to streamline the annual process by which 

19 students apply for Federal financial assistance; and 

20 ‘‘(2) to reduce the need for students to apply 

21 for such assistance each year. 

22 ‘‘(b) PILOT PROGRAM AUTHORIZED.—The Secretary 

23 is authorized to establish a pilot program and select 5 eli24 gible States— 

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1 ‘‘(1) in which a student who attends an institu2 tion of higher education in the eligible State may 

3 submit a single Free Application for Federal Stu4 dent Aid described in section 483 and as modified 

5 under subsection (d) (referred to in this section as 

6 the ‘FAFSA)’, to be used for application to deter7 mine the need and eligibility of the student for fi8 nancial assistance under this title during the official 

9 length of the student’s proposed postsecondary de10 gree program; and 

11 ‘‘(2) that shall receive a grant in accordance 

12 with subsection (e). 

13 ‘‘(c) ELIGIBLE STATES.—The Secretary shall select 

14 5 eligible States that are determined by the Secretary to 

15 have a strong record of increasing college access and af16 fordability, especially for low-income students, to partici17 pate in the pilot program described in subsection (b). The 

18 selection of eligible States shall be based on the extent 

19 to which the State has— 

20 ‘‘(1) invested, and continues to invest, signifi21 cantly in public higher education, resulting in a com22 paratively lower net price for low-income students; 

23 ‘‘(2) allocated State financial aid primarily on 

24 the basis of need; and 

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1 ‘‘(3) agreed, as a condition of the State’s appli2 cation for the pilot program under this section, to 

3 provide all in-State students (as determined by the 

4 State) with an offer for State financial aid that— 

5 ‘‘(A) is valid for not less than 2 years and 

6 not more than 4 years, as determined by the 

7 State; and 

8 ‘‘(B) shall be subject to change only upon 

9 certain conditions, such as significant changes 

10 in a student’s financial circumstances. 

11 ‘‘(d) SINGLE FAFSA SUBMISSION.—The Secretary 

12 shall implement, in consultation with the 5 selected eligible 

13 States, a pilot program to streamline the process of appli14 cation to determine the need and eligibility of a student 

15 for financial assistance under this title that incorporates 

16 the following: 

17 ‘‘(1) An option for students that are enrolled in 

18 an institution of higher education in a selected eligi19 ble State to submit a single FAFSA at the begin20 ning of the student’s postsecondary degree program 

21 and receive a determination of financial assistance 

22 under this title that shall, on a contingent basis, be 

23 valid for not less than 2 years and not more than 

24 four years, as determined by the State. 

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1 ‘‘(2) The determination of financial assistance 

2 under paragraph (1) shall be made in accordance 

3 with part F, except that relevant calculations shall 

4 be made using a multi-year average, of two or three 

5 years, from the most recent tax years for which data 

6 are available. A student may use previously sub7 mitted student and parent taxpayer data to 

8 prepopulate the electronic version of the FAFSA, as 

9 described in section 483(f) of the Higher Education 

10 Act of 1965 (20 U.S.C. 1090(f)). 

11 ‘‘(3) As a condition of the continued receipt of 

12 financial assistance under this section, the Secretary 

13 may require a student who submits the single 

14 FAFSA to respond to a short number of questions 

15 (which may be determined by the Secretary), on an 

16 annual basis, to determine if there is a change in the 

17 financial status of the student (such as whether the 

18 student or the student’s parent has experienced a 

19 substantial increase in annual income) in order to 

20 ensure that the student continues to receive the ap21 propriate amount of financial assistance under this 

22 title. 

23 ‘‘(4) Notwithstanding paragraph (1), a require24 ment that students who experience significant 

25 changes in their financial circumstances, as determstockstill on DSK4VPTVN1PROD with BILLS

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1 mined by the Secretary, will be required to resubmit 

2 the FAFSA in order to receive a new determination 

3 of financial assistance under this title. 

4 ‘‘(5) An income verification process— 

5 ‘‘(A) which the Secretary, through the es6 tablishment of a memorandum of under7 standing with the Secretary of the Treasury, 

8 will develop to share the income tax data of a 

9 random sample of students who have received 

10 Federal assistance under this title, including 

11 Federal Pell Grants under section 401 and 

12 loans made under part D; 

13 ‘‘(B) to ensure that students who have not 

14 resubmitted a FAFSA in accordance with para15 graph (4) did not have a significant change in 

16 financial circumstances that would have re17 quired them to do so; 

18 ‘‘(C) that shall be carried out in a way so 

19 as to ensure that no personally identifiable in20 formation is made public through the income 

21 verification process; and 

22 ‘‘(D) that will be carried out only with the 

23 consent of students, whose consent will be re24 quested as part of the annual response required 

25 under paragraph (3). 

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1 ‘‘(6) An option for students to request profes2 sional judgment or resubmit their FAFSA each 

3 year, to receive a new determination of eligibility for 

4 financial assistance under this title. 

5 ‘‘(e) GRANT AMOUNT.—Selected eligible States that 

6 receive a grant under this section shall use grant funds 

7 to increase public awareness of, and promote the use of, 

8 the single FAFSA that may be submitted under the pilot 

9 program to be used for application to determine the need 

10 and eligibility of the student for financial assistance under 

11 this title during the official length of the student’s pro12 posed postsecondary degree program. 

13 ‘‘(f) SUPPLEMENT NOT SUPPLANT.—The grants pro14 vided under this section shall be used to supplement, and 

15 not supplant, State funds that are used to improve college 

16 access and affordability. 

17 ‘‘(g) EVALUATION.—Not later than 3 years after the 

18 date of enactment of the Higher Education Affordability 

19 Act, and 5 years thereafter, the Secretary shall prepare 

20 and submit to the authorizing committees a report that 

21 contains an evaluation of the effectiveness of the pilot pro22 gram under this section in improving college access, in23 creasing FAFSA submission rates, and increasing postsec24 ondary education credit and course accumulation.’’. 

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1 SEC. 484. ABILITY TO BENEFIT. 

2 (a) IN GENERAL.—Subsection (d) of section 484 (20 

3 U.S.C. 1091) is amended to read as follows: 

4 ‘‘(d) STUDENTS WHO ARE NOT HIGH SCHOOL

5 GRADUATES.— 

6 ‘‘(1) STUDENT ELIGIBILITY.—In order for a 

7 student who does not have a certificate of gradua8 tion from a school providing secondary education, or 

9 the recognized equivalent of such certificate, to be 

10 eligible for any assistance under subparts 1, 3, and 

11 4 of part A and parts B, C, D, and E of this title, 

12 the student shall meet the requirements of one of 

13 the following subparagraphs: 

14 ‘‘(A) The student is enrolled in an eligible 

15 career pathway program and meets one of the 

16 following standards: 

17 ‘‘(i) The student shall take an inde18 pendently administered examination and 

19 shall achieve a score, specified by the Sec20 retary, demonstrating that such student 

21 can benefit from the education or training 

22 being offered. Such examination shall be 

23 approved by the Secretary on the basis of 

24 compliance with such standards for devel25 opment, administration, and scoring as the 

26 Secretary may prescribe in regulations. 

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1 ‘‘(ii) The student shall be determined 

2 as having the ability to benefit from the 

3 education or training in accordance with 

4 such process as the State shall prescribe. 

5 Any such process described or approved by 

6 a State for the purposes of this section 

7 shall be effective 6 months after the date 

8 of submission to the Secretary unless the 

9 Secretary disapproves such process. In de10 termining whether to approve or dis11 approve such process, the Secretary shall 

12 take into account the effectiveness of such 

13 process in enabling students without high 

14 school diplomas or the equivalent thereof 

15 to benefit from the instruction offered by 

16 institutions utilizing such process, and 

17 shall also take into account the cultural di18 versity, economic circumstances, and edu19 cational preparation of the populations 

20 served by the institutions. 

21 ‘‘(iii) The student shall be determined 

22 by the institution of higher education as 

23 having the ability to benefit from the edu24 cation or training offered by the institution 

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1 pletion of 6 credit hours or the equivalent 

2 coursework that are applicable toward a 

3 degree or certificate offered by the institu4 tion of higher education. 

5 ‘‘(B) The student has completed a sec6 ondary school education in a home school set7 ting that is treated as a home school or private 

8 school under State law. 

9 ‘‘(2) ELIGIBLE CAREER PATHWAY PROGRAM.— 

10 In this subsection, the term ‘eligible career pathway 

11 program’ means a program that— 

12 ‘‘(A) concurrently enrolls participants in 

13 connected adult education and eligible postsec14 ondary programs; 

15 ‘‘(B) provides counseling and supportive 

16 services to identify and attain academic and ca17 reer goals; 

18 ‘‘(C) provides structured course sequences 

19 that— 

20 ‘‘(i) are articulated and 

21 contextualized; and 

22 ‘‘(ii) allow students to advance to 

23 higher levels of education and employment; 

24 ‘‘(D) provides opportunities for accelera25 tion to attain recognized postsecondary credenmstockstill on DSK4VPTVN1PROD with BILLS

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1 tials, including degrees, industry relevant cer2 tifications, and certificates of completion of ap3 prenticeship programs; 

4 ‘‘(E) is organized to meet the needs of 

5 adults; 

6 ‘‘(F) is aligned with the education and skill 

7 needs of the regional economy; and 

8 ‘‘(G) has been developed and implemented 

9 in collaboration with partners in business, work10 force development, and economic development.’’. 

11 (b) EFFECTIVE DATE AND TRANSITION.—The 

12 amendment made by subsection (a) shall apply to students 

13 who first enroll in a program of study during the period 

14 beginning July 1, 2012, and ending June 30, 2019. 

15 SEC. 485. REASONABLE COLLECTION COSTS IN STATE 

16 COURT JUDGMENTS. 

17 Section 484A(b)(1) (20 U.S.C. 1091a(b)(1)) is 

18 amended by striking ‘‘reasonable collection costs’’ and in19 serting ‘‘reasonable collection costs, which, in the case of 

20 a loan made under part D, means collection costs in an 

21 amount that is reasonable and that does not exceed the 

22 bona fide collection costs associated with such student loan 

23 that are actually incurred in collecting the debt against 

24 the borrower’’. 

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1 SEC. 486. IMPROVED DISCLOSURES, COUNSELING, AND FI2 NANCIAL ASSISTANCE INFORMATION FOR 

3 STUDENTS. 

4 (a) IN GENERAL.—Section 485 (20 U.S.C. 1092) is 

5 amended— 

6 (1) in subsection (b)— 

7 (A) in paragraph (1)(A)— 

8 (i) by striking clause (i) and inserting 

9 the following: 

10 ‘‘(i) personalized information that reflects the 

11 borrower’s actual borrowing circumstances, which 

12 shall include— 

13 ‘‘(I) the repayment plans available, includ14 ing the income-based repayment option under 

15 section 493C and the standard 10-year repay16 ment option under section 428(b)(9)(A)(i) or 

17 455(d)(1)(A); 

18 ‘‘(II) a description of the different features 

19 of each plan; and 

20 ‘‘(III) personalized information showing es21 timates of the borrower’s anticipated monthly 

22 payments and the difference in total interest 

23 paid and total payments under each plan;’’; 

24 (ii) by redesignating clauses (viii) and 

25 (ix) as clauses (x) and (xi), respectively; 

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1 (iii) by inserting after clause (vii) the 

2 following: 

3 ‘‘(viii) a statement that student loans must be 

4 repaid even if the student does not complete the pro5 gram in which the student is enrolled; 

6 ‘‘(ix) information and resources related to fi7 nancial literacy and planning, including budgeting, 

8 as determined by the Secretary based on the rec9 ommendations of the Secretary of the Treasury in 

10 the report submitted under section 1103 of the 

11 Higher Education Affordability Act;’’; and 

12 (iv) by adding at the end the fol13 lowing: 

14 ‘‘(C) The counseling described in subparagraph (A)— 

15 ‘‘(i) shall be provided in a simple and under16 standable manner that includes mechanisms to check 

17 for comprehension; and 

18 ‘‘(ii) shall be provided— 

19 ‘‘(I) during an exit counseling session con20 ducted in person; or 

21 ‘‘(II) online.’’; and 

22 (B) in paragraph (2)(A)(iv), by striking ‘‘, 

23 address, social security number, references, and 

24 driver’s license number’’ and inserting ‘‘, postal 

25 address, social security number, references, 

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1 driver’s license number, phone number, and 

2 personal electronic mailing address that is not 

3 associated with the institution’’; 

4 (2) in subsection (d)(1), by striking ‘‘income5 sensitive’’ and all that follows through ‘‘part D’’ and 

6 inserting ‘‘income-based repayment plans for loans 

7 made, insured, or guaranteed under part B or made 

8 under part D.’’; 

9 (3) in subsection (f)— 

10 (A) by striking the subsection heading and 

11 inserting ‘‘DISCLOSURE OF CAMPUS SECURITY

12 AND HARASSMENT POLICY AND CAMPUS CRIME

13 STATISTICS’’; 

14 (B) in paragraph (6)(A)— 

15 (i) by redesignating clauses (iii), (iv), 

16 and (v) as clauses (vii), (viii), and (ix), re17 spectively; and 

18 (ii) by inserting after clause (ii) the 

19 following: 

20 ‘‘(iii) The term ‘commercial mobile service’ 

21 has the meaning given the term in section 

22 332(d) of the Communications Act of 1934 (47 

23 U.S.C. 332(d)). 

24 ‘‘(iv) The term ‘electronic communication’ 

25 means any transfer of signs, signals, writing, 

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1 images, sounds, or data of any nature trans2 mitted in whole or in part by a wire, radio, elec3 tromagnetic, photoelectronic, or photooptical 

4 system. 

5 ‘‘(v) The term ‘electronic messaging serv6 ices’ has the meaning given the term in section 

7 102 of the Communications Assistance for Law 

8 Enforcement Act (47 U.S.C. 1001). 

9 ‘‘(vi) The term ‘harassment’ means con10 duct, including acts of verbal, nonverbal, or 

11 physical aggression, intimidation, or hostility 

12 (including conduct that is undertaken in whole 

13 or in part, through the use of electronic mes14 saging services, commercial mobile services, 

15 electronic communications, or other technology) 

16 that— 

17 ‘‘(I) is sufficiently severe, persistent, 

18 or pervasive so as to limit a student’s abil19 ity to participate in or benefit from a pro20 gram or activity at an institution of higher 

21 education, or to create a hostile or abusive 

22 educational environment at an institution 

23 of higher education; and 

24 ‘‘(II) is based on a student’s actual or 

25 perceived— 

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1 ‘‘(aa) race; 

2 ‘‘(bb) color; 

3 ‘‘(cc) national origin; 

4 ‘‘(dd) sex; 

5 ‘‘(ee) disability; 

6 ‘‘(ff) sexual orientation; 

7 ‘‘(gg) gender identity; or 

8 ‘‘(hh) religion.’’; 

9 (C) by redesignating paragraphs (9) 

10 through (18) as paragraphs (10) through (19), 

11 respectively; and 

12 (D) by inserting after paragraph (8) the 

13 following: 

14 ‘‘(9)(A) Each institution of higher education 

15 participating in any program under this title, other 

16 than a foreign institution of higher education, shall 

17 develop and distribute as part of the report de18 scribed in paragraph (1) a statement of policy re19 garding harassment, which shall include— 

20 ‘‘(i) a prohibition of harassment of enrolled 

21 students by other students, faculty, and staff— 

22 ‘‘(I) on campus; 

23 ‘‘(II) in noncampus buildings or on 

24 noncampus property; 

25 ‘‘(III) on public property; 

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1 ‘‘(IV) through the use of electronic 

2 mail addresses issued by the institution of 

3 higher education; 

4 ‘‘(V) through the use of computers 

5 and communication networks, including 

6 any telecommunications service, owned, op7 erated, or contracted for use by the institu8 tion of higher education or its agents; or 

9 ‘‘(VI) during an activity sponsored by 

10 the institution of higher education or car11 ried out with the use of resources provided 

12 by the institution of higher education; 

13 ‘‘(ii) a description of the institution’s pro14 grams to combat harassment, which shall be 

15 aimed at the prevention of harassment; 

16 ‘‘(iii) a description of the procedures that 

17 a student should follow if an incident of harass18 ment occurs; and 

19 ‘‘(iv) a description of the procedures that 

20 the institution will follow once an incident of 

21 harassment has been reported. 

22 ‘‘(B) The statement of policy described in sub23 paragraph (A) shall address the following areas: 

24 ‘‘(i) Procedures for timely institutional ac25 tion in cases of alleged harassment, which promstockstill on DSK4VPTVN1PROD with BILLS

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1 cedures shall include a clear statement that the 

2 accuser and the accused shall be informed of 

3 the outcome of any disciplinary proceedings in 

4 response to an allegation of harassment. 

5 ‘‘(ii) Possible sanctions to be imposed fol6 lowing the final determination of an institu7 tional disciplinary procedure regarding harass8 ment. 

9 ‘‘(iii) Notification of existing counseling, 

10 mental health, or student services for victims or 

11 perpetrators of harassment, both on campus 

12 and in the community. 

13 ‘‘(iv) Identification of a designated em14 ployee or office at the institution that will be 

15 responsible for receiving and tracking each re16 port of harassment by a student, faculty, or 

17 staff member.’’; 

18 (4) in subsection (l)— 

19 (A) by striking paragraph (1) and insert20 ing the following: 

21 ‘‘(1) DISCLOSURE REQUIRED PRIOR TO SIGNING

22 MASTER PROMISSORY NOTE.—Each eligible institu23 tion shall, prior to obtaining or arranging execution 

24 of a master promissory note for a loan under part 

25 D (other than a Federal Direct Consolidation Loan) 

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1 by a first-time borrower at such institution, ensure 

2 that the borrower receives comprehensive informa3 tion on the terms and conditions of the loan and of 

4 the responsibilities the borrower has with respect to 

5 such loan in accordance with paragraph (2). Such 

6 information— 

7 ‘‘(A) shall be provided through the use of 

8 interactive programs that include mechanisms 

9 to check the borrower’s comprehension of the 

10 terms and conditions of the borrower’s loans 

11 under part D, using simple and understandable 

12 language and clear formatting; and 

13 ‘‘(B) shall be provided— 

14 ‘‘(i) during an entrance counseling 

15 session conducted in person; or 

16 ‘‘(ii) online.’’; 

17 (B) in paragraph (2)— 

18 (i) in subparagraph (H), by striking 

19 ‘‘within the regular time for program com20 pletion’’; and 

21 (ii) by adding at the end the fol22 lowing: 

23 ‘‘(L)(i) A disclosure that Federal student 

24 loans offer generally more favorable terms and 

25 beneficial repayment options than private edumstockstill on DSK4VPTVN1PROD with BILLS

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1 cation loans, an explanation of the difference 

2 and relevance between student loans with a 

3 fixed interest rate as compared to student loans 

4 with a variable interest rate, and a rec5 ommendation that students examine available 

6 Federal student loan options before applying for 

7 private education loans. 

8 ‘‘(ii) The explanation of the benefits pro9 vided under Federal student loans developed by 

10 the Secretary under section 483A(b). 

11 ‘‘(M) An explanation, if applicable, that a 

12 student may refuse all or part of a student loan 

13 available under part D, which could help mini14 mize the student’s debt obligations. 

15 ‘‘(N) Information relating to the institu16 tion’s cohort default rate, including— 

17 ‘‘(i) the cohort default rate, as defined 

18 in section 435(m), of the institution; 

19 ‘‘(ii) an easy to understand expla20 nation of the cohort default rate; 

21 ‘‘(iii) the percentage of students at 

22 the institution of higher education who 

23 borrow Federal student loans under this 

24 title; 

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1 ‘‘(iv) the national average cohort de2 fault rate (as determined by the Secretary 

3 in accordance with section 435(m)); 

4 ‘‘(v) in the case of an institution with 

5 a cohort default rate that is greater than 

6 the national average cohort default rate (as 

7 described in clause (iv)), a disclosure to the 

8 student that the institution’s cohort de9 fault rate is above the national average; 

10 and 

11 ‘‘(vi) in the case of an institution with 

12 a cohort default rate that is greater than 

13 30 percent, a disclosure to the students 

14 that if the cohort default rate remains 

15 greater than 30 percent for the 3 consecu16 tive years— 

17 ‘‘(I) the institution will lose insti18 tutional eligibility for the purposes of 

19 programs authorized under this title; 

20 and 

21 ‘‘(II) the student will no longer 

22 be able to receive Federal financial aid 

23 at that institution. 

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1 ‘‘(O) Information relating to the institu2 tion’s speed-based loan repayment rate, includ3 ing— 

4 ‘‘(i) the speed-based loan repayment 

5 rate, as described in section 483D(c), of 

6 the institution and, if applicable, the 

7 speed-based loan repayment rate of each 

8 program at the institution that is subject 

9 to gainful employment regulations under 

10 section 668.7 of title 34, Code of Federal 

11 Regulations; 

12 ‘‘(ii) an easy to understand descrip13 tion of what a speed-based loan repayment 

14 rate is; 

15 ‘‘(iii) the national average speed-based 

16 loan repayment rate, as determined by the 

17 Secretary in accordance with section 

18 483D(c); and 

19 ‘‘(iv) in the case of an institution with 

20 a speed-based loan repayment rate that is 

21 below the national average speed-based 

22 loan repayment rate (as described in clause 

23 (iii)), a disclosure to the student that the 

24 institution’s speed-based loan repayment 

25 rate is below the national average. 

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1 ‘‘(P) In the case of an institution with a 

2 school default risk for a fiscal year, as cal3 culated by the Secretary, of 0.1 or higher, an 

4 explanation of the obligations of the institution 

5 under section 487(a)(32)(A). 

6 ‘‘(Q) The percentages of students at the 

7 institution who obtain a degree or certificate 

8 within 100 percent of the normal time for com9 pletion of the student’s program, and who ob10 tain a degree or certificate within 150 percent 

11 of the normal time for completion of, the stu12 dent’s program. 

13 ‘‘(R) Information and resources related to 

14 financial literacy and planning, including budg15 eting, as determined by the Secretary based on 

16 the recommendations of the Secretary of the 

17 Treasury in the report submitted under section 

18 1103 of the Higher Education Affordability 

19 Act.’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(3) BORROWER CONTACT INFORMATION.— 

22 ‘‘(A) IN GENERAL.—Each eligible institu23 tion shall— 

24 ‘‘(i) require that a borrower who ap25 plies for a loan under this title to attend 

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1 the institution on or after the date of en2 actment of the Higher Education Afford3 ability Act submit to the institution, dur4 ing the entrance counseling required by 

5 this subsection, the borrower’s contact in6 formation at the time of the entrance 

7 counseling, including the borrower’s phone 

8 number and the borrower’s postal address; 

9 and 

10 ‘‘(ii) request that the borrower provide 

11 a personal electronic mailing address of the 

12 borrower that is not associated with the in13 stitution. 

14 ‘‘(B) BORROWER RESPONSIBILITY.—A bor15 rower receiving entrance counseling under this 

16 subsection shall provide the institution with the 

17 personal electronic mailing address described in 

18 subparagraph (A)(ii) and shall update the bor19 rower’s contact information as necessary to en20 sure that the information remains accurate.’’; 

21 and 

22 (5) by adding at the end the following: 

23 ‘‘(n) ADDITIONAL NOTIFICATIONS AND COUNSELING

24 FOR BORROWERS.— 

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1 ‘‘(1) ANNUAL NOTIFICATIONS.—Each eligible 

2 institution shall, not less than once every year while 

3 a student is enrolled in the institution, carry out the 

4 notification requirements described in subparagraphs 

5 (A) through (G) with respect to a borrower of a loan 

6 made, insured, or guaranteed under part B (other 

7 than a loan made pursuant to section 428C) or 

8 made under part D (other than a Federal Direct 

9 Consolidation Loan). Such notification requirements 

10 may be fulfilled by notifications provided at the 

11 same time as existing methods of communication, 

12 such as by accompanying the annual financial aid 

13 award letter, subject to subparagraph (E). 

14 ‘‘(A) STUDENT LOAN BALANCE; LOAN

15 TERMS.—The eligible institution shall provide 

16 the borrower with a written notification of— 

17 ‘‘(i) the borrower’s outstanding bal18 ance of principal and interest owing on any 

19 loan made, insured, or guaranteed under 

20 this title; 

21 ‘‘(ii) the borrower’s repayment op22 tions; 

23 ‘‘(iii) a disclosure that Federal stu24 dent loans offer generally more favorable 

25 terms and beneficial repayment options 

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1 than private education loans, an expla2 nation of the difference and relevance be3 tween student loans with a fixed interest 

4 rate as compared to student loans with a 

5 variable interest rate, and a recommenda6 tion that students examine available Fed7 eral student loan options before applying 

8 for private education loans; and 

9 ‘‘(iv) the explanation of the benefits 

10 provided under Federal student loans de11 veloped by the Secretary under section 

12 483A(b). 

13 ‘‘(B) FEDERAL DIRECT STAFFORD LOAN

14 ELIGIBILITY.—In addition to the notifications 

15 under subparagraph (A) and under subpara16 graph (C), if applicable, in the case of a bor17 rower described in paragraph (1) who qualifies 

18 for a Federal Direct Stafford Loan and who 

19 was a new borrower on or after July 1, 2013, 

20 the institution shall provide— 

21 ‘‘(i) a written notification of the pe22 riod of time that the borrower has remain23 ing before the borrower will not be eligible 

24 for a Federal Direct Stafford Loan in ac25 cordance with section 455(q) because the 

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1 period of time for which the borrower has 

2 received Federal Direct Stafford Loans, in 

3 the aggregate, exceeds the period of enroll4 ment described in section 455(q)(3); and 

5 ‘‘(ii) a written notification to such 

6 student when the period of time for which 

7 the borrower has received Federal Direct 

8 Stafford Loans, in the aggregate, 

9 reaches— 

10 ‘‘(I) except as provided in sub11 clause (II) or (III), a period equal to 

12 100 percent of the published length of 

13 the educational program in which the 

14 student is enrolled; 

15 ‘‘(II) in the case of a borrower 

16 who was previously enrolled in 1 or 

17 more other educational programs that 

18 began on or after July 1, 2013, a period equivalent to 2 19 ⁄3 of the maximum 

20 period of time that the borrower is eli21 gible to receive a Federal Direct Staf22 ford Loan, as calculated in accordance 

23 with section 455(q)(3)(A)(ii); or 

24 ‘‘(III) in the case of a borrower 

25 who was or is enrolled on less than a 

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1 full-time basis or in the case of a bor2 rower whose course of study or pro3 gram is described in paragraph (3)(B) 

4 or (4)(B) of section 484(b), a period 

equivalent to 2 5 ⁄3 of the maximum pe6 riod of time that the borrower is eligi7 ble to receive a Federal Direct Staf8 ford Loan, as calculated in accordance 

9 with section 455(q)(3)(B). 

10 ‘‘(C) FEDERAL PELL GRANT ELIGI11 BILITY.—In addition to the notifications under 

12 subparagraph (A) and under subparagraph (B), 

13 if applicable, in the case of a borrower de14 scribed in paragraph (1) who is receiving a 

15 Federal Pell Grant, the institution shall provide 

16 a written notification to such borrower of the 

17 student’s remaining period of eligibility for a 

18 Federal Pell Grant in accordance with section 

19 401(c)(5). 

20 ‘‘(D) CONFIRMATION OF RECEIPT OF NO21 TIFICATION.—Each eligible institution shall re22 quire the borrower, for each applicable notifica23 tion described in this paragraph, to provide 

24 written confirmation (including through elec25 tronic means) that the borrower has received 

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1 the notification and understands the informa2 tion contained in that notification. 

3 ‘‘(E) NOTIFICATIONS BY CERTAIN INSTI4 TUTIONS.—In the case of an institution de5 scribed in paragraph (2), the notification re6 quirements under this paragraph (including the 

7 confirmation of notification described in sub8 paragraph (D)) shall be carried out annually 

9 during the interim in-school counseling de10 scribed in paragraph (2). 

11 ‘‘(F) ADDITIONAL LOAN COUNSELING RE12 QUIREMENTS FOR CERTAIN STUDENT BOR13 ROWERS.— 

14 ‘‘(i) BORROWERS IN NEED OF ADDI15 TIONAL LOAN COUNSELING.—A borrower 

16 shall be subject to the requirements de17 scribed in clause (iii) if— 

18 ‘‘(I) the borrower has a loan 

19 made, insured, or guaranteed under 

20 part B (other than a loan made pur21 suant to section 428C or a loan made 

22 on behalf of a student pursuant to 

23 section 428B) or made under part D 

24 (other than a Federal Direct Consoli25 dation Loan or a Federal Direct 

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1 PLUS loan made on behalf of a stu2 dent); and 

3 ‘‘(II)(aa) the borrower has trans4 ferred to the institution from another 

5 institution of higher education; or 

6 ‘‘(bb) the borrower meets certain 

7 criteria that may place a borrower at 

8 greater risk of defaulting on student 

9 loans. 

10 ‘‘(ii) DETERMINATION MADE BY SEC11 RETARY.—The Secretary shall determine 

12 any appropriate criteria to be used in 

13 clause (i)(II)(bb), such as withdrawing pre14 maturely from an educational program or 

15 being in danger of failing to meet stand16 ards of academic progress. Nothing in this 

17 subparagraph shall be construed to allow 

18 an institution to select any criteria for pur19 poses of such clause. 

20 ‘‘(iii) ADDITIONAL COUNSELING.— 

21 Each eligible institution shall require each 

22 borrower described in clause (i) to partici23 pate in an additional loan counseling ses24 sion, which shall— 

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1 ‘‘(I) be coordinated jointly by the 

2 student’s academic advisor and the fi3 nancial aid office of the institution; 

4 ‘‘(II) include disclosure of the es5 timated additional cost of attendance 

6 that the borrower may incur by failing 

7 to progress through the borrower’s 

8 educational program at a pace that 

9 meets the requirements for satisfac10 tory progress, as described in section 

11 484(c); and 

12 ‘‘(III) in the case of a borrower 

13 described in clause (i)(II)(bb), include 

14 the development of an institutionally 

15 approved academic plan designed to 

16 ensure that the borrower will complete 

17 the borrower’s educational program 

18 within a reasonable timeframe. 

19 ‘‘(G) COUNSELING FOR PARENT PLUS BOR20 ROWERS.— 

21 ‘‘(i) IN GENERAL.—Each eligible insti22 tution shall, prior to disbursement of a 

23 Federal Direct PLUS loan made on behalf 

24 of a student, ensure that the borrower re25 ceives comprehensive information on the 

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1 terms and conditions of the loan and of the 

2 responsibilities the borrower has with re3 spect to such loan. Such information— 

4 ‘‘(I) shall be provided through 

5 the use of interactive programs that 

6 use mechanisms to check the bor7 rower’s understanding of the terms 

8 and conditions of the borrower’s loan, 

9 using simple and understandable lan10 guage and clear formatting; and 

11 ‘‘(II) shall be provided— 

12 ‘‘(aa) during a counseling 

13 session conducted in person; or 

14 ‘‘(bb) online. 

15 ‘‘(ii) INFORMATION TO BE PRO16 VIDED.—The information to be provided to 

17 the borrower under clause (i) shall include 

18 the following: 

19 ‘‘(I) Information on how interest 

20 accrues and is capitalized during peri21 ods when the interest is not paid by 

22 the borrower. 

23 ‘‘(II) An explanation of when 

24 loan repayment begins, of the options 

25 available for a borrower who may need 

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1 a deferment, and that interest accrues 

2 during a deferment. 

3 ‘‘(III) The repayment plans that 

4 are available to the borrower, includ5 ing personalized information show6 ing— 

7 ‘‘(aa) estimates of the bor8 rower’s anticipated monthly pay9 ments under each repayment 

10 plan that is available; and 

11 ‘‘(bb) the difference in inter12 est paid and total payments 

13 under each repayment plan. 

14 ‘‘(IV) The obligation of the bor15 rower to repay the full amount of the 

16 loan, regardless of whether the stu17 dent on whose behalf the loan was 

18 made completes the program in which 

19 the student is enrolled. 

20 ‘‘(V) The likely consequences of 

21 default on the loan, including adverse 

22 credit reports, delinquent debt collec23 tion procedures under Federal law, 

24 and litigation. 

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1 ‘‘(VI) A notification that the loan 

2 is not eligible for an income-based re3 payment plan under section 493C. 

4 ‘‘(VII) The name and contact in5 formation of the individual the bor6 rower may contact if the borrower has 

7 any questions about the borrower’s 

8 rights and responsibilities or the 

9 terms and conditions of the loan. 

10 ‘‘(2) INTERIM IN-SCHOOL COUNSELING RE11 QUIREMENTS FOR INSTITUTIONS WITH GREATER

12 THAN AVERAGE STUDENT DEFAULT RISK.—Each eli13 gible institution that has a student default risk that 

14 is greater than the national average student default 

15 risk (as determined by the Secretary), shall require 

16 each borrower of a loan made, insured, or guaran17 teed under part B (other than a loan made pursuant 

18 to section 428C or a loan made on behalf of a stu19 dent pursuant to section 428B) or made under part 

20 D (other than a Federal Direct Consolidation Loan 

21 or a Federal Direct PLUS loan made on behalf of 

22 a student), to undertake not less than 1 online or in23 person counseling session at the beginning of each 

24 academic year that the borrower is enrolled at such 

25 institution, which shall include— 

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1 ‘‘(A) the applicable notification require2 ments described in paragraph (1); and 

3 ‘‘(B) a statement that student loans must 

4 be repaid even if the student does not complete 

5 the program in which the student enrolled. 

6 ‘‘(o) REQUIRED DATA.—In any case where an insti7 tution needs data to comply with subsection (b), (l), or 

8 (n) that are not available to the institution but that are 

9 available to the Department or a Federal agency, the Sec10 retary or the head of such agency shall provide or make 

11 available such information to the institution. 

12 ‘‘(p) REPORTS RELATING TO CLINICAL TRAINING

13 PROGRAMS.— 

14 ‘‘(1) REPORT ON CLINICAL TRAINING PROGRAM

15 AGREEMENTS.— 

16 ‘‘(A) IN GENERAL.—Beginning in the year 

17 in which the Higher Education Affordability 

18 Act is enacted, an eligible institution that par19 ticipates in any program under this title shall 

20 prepare and submit a report to the Secretary 

21 containing the information described in sub22 paragraph (C), for every year in which the eligi23 ble institution has an agreement with a hospital 

24 or health facility, through which— 

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1 ‘‘(i) the eligible institution agrees to 

2 provide funding or other benefits to the 

3 hospital or health facility; and 

4 ‘‘(ii) that hospital or health facility 

5 provides opportunities for students at the 

6 institution to participate in a clinical train7 ing program. 

8 ‘‘(B) TIMING.—Following the year in 

9 which the Higher Education Affordability Act is 

10 enacted, the report described in this paragraph 

11 shall be submitted not more than 30 days after 

12 the end of any year for which a report is re13 quired to comply with subparagraph (A). 

14 ‘‘(C) CONTENTS OF REPORT.—The report 

15 described in this paragraph shall include the 

16 following: 

17 ‘‘(i) The amount of any payments 

18 from the institution of higher education to 

19 a hospital or health facility during the pe20 riod covered by the report, and the precise 

21 terms of any agreement under which such 

22 amounts are determined. 

23 ‘‘(ii) Any conditions associated with 

24 the transfer of money or the provision of 

25 clinical training program opportunities 

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1 that are part of the agreement described in 

2 subparagraph (A). 

3 ‘‘(iii) Any memorandum of under4 standing between the institution of higher 

5 education, or an alumni association or 

6 foundation affiliated with or related to 

7 such institution, and a hospital or health 

8 facility, that directly or indirectly relates to 

9 any aspect of any agreement referred to in 

10 subparagraph (A) or controls or directs 

11 any obligations or distribution of benefits 

12 between or among any such entities. 

13 ‘‘(iv) For each hospital or health facil14 ity that has an agreement described in 

15 subparagraph (A) with the institution, the 

16 number of clinical training positions at the 

17 hospital or health facility that are reserved 

18 for students at that institution. 

19 ‘‘(2) REPORT ON CHARITABLE DONATIONS.— 

20 ‘‘(A) IN GENERAL.—Beginning in the year 

21 in which the Higher Education Affordability 

22 Act is enacted, and annually thereafter, an eli23 gible institution shall prepare and submit to the 

24 Secretary a report containing the information 

25 described in subparagraph (C) if— 

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1 ‘‘(i) the eligible institution made a 

2 charitable donation to a hospital or health 

3 facility in any of the previous 3 years; and 

4 ‘‘(ii) the number of students from the 

5 eligible institution who participate in any 

6 clinical training program at the hospital or 

7 health facility where such a donation was 

8 made increases by more than 5 students or 

9 10 percent, whichever is less, as compared 

10 to the number of such students who par11 ticipated in a clinical training program at 

12 that hospital or health facility during the 

13 first year in the previous 3-year period. 

14 ‘‘(B) TIMING.—Following the year in 

15 which the Higher Education Affordability Act is 

16 enacted, the report described in subparagraph 

17 (A) shall be submitted not more than 30 days 

18 after the end of any year for which a report is 

19 required to comply with subparagraph (A). 

20 ‘‘(C) CONTENTS OF REPORT.—The report 

21 described in this paragraph shall include the 

22 following: 

23 ‘‘(i) The amount of each charitable 

24 donation that was made in the previous 3- 

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1 year period by the eligible institution to a 

2 hospital or health facility. 

3 ‘‘(ii) The number of students from the 

4 eligible institution who participate in any 

5 clinical training program at the hospital or 

6 health facility where each such donation 

7 was made— 

8 ‘‘(I) during the year in which the 

9 report is submitted; and 

10 ‘‘(II) during the first year in the 

11 previous 3-year period covered by the 

12 report. 

13 ‘‘(3) AGGREGATION BY INSTITUTION.—The in14 formation required to be reported in this subsection 

15 shall include, and shall be aggregated with respect 

16 to, each institution of higher education and each 

17 alumni association or foundation affiliated with or 

18 related to such institution. For any year in which an 

19 institution is required to submit a report described 

20 under paragraph (1) and a report described under 

21 paragraph (2), the institution may submit a single 

22 report for that year containing all of the information 

23 required under paragraphs (1) and (2). 

24 ‘‘(4) REPORT TO CONGRESS.—The Secretary, in 

25 conjunction with the Secretary of Health and 

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1 Human Services, shall submit to Congress, and 

2 make available to the public, an annual report that 

3 lists the reports submitted to the Secretary by each 

4 institution of higher education in accordance with 

5 this subsection. 

6 ‘‘(5) PUBLIC DISCLOSURE.—Each eligible insti7 tution described in paragraph (1) or (2) of this sub8 section shall make readily available the reports de9 scribed in such paragraph (as applicable), through 

10 appropriate publications, mailings, and electronic 

11 media to the general public. 

12 ‘‘(6) DEFINITIONS.—In this subsection: 

13 ‘‘(A) CLINICAL TRAINING PROGRAM.—The 

14 term ‘clinical training program’ means any pro15 gram at, or associated or affiliated with, a hos16 pital or health facility (or any of a hospital’s af17 filiates or health facility’s affiliates), the com18 pletion of which fulfills a requirement that is 

19 necessary to receive a license, certificate, spe20 cialized accreditation, or other academically re21 lated pre-condition necessary under Federal or 

22 State law for a health profession. 

23 ‘‘(B) HEALTH FACILITY.—The term 

24 ‘health facility’ has the meaning given that 

25 term in section 804(d). 

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1 ‘‘(C) HOSPITAL.—The term ‘hospital’ has 

2 the meaning given that term in section 1861 of 

3 the Social Security Act (42 U.S.C. 1395x).’’. 

4 (b) EFFECT ON CHANGES TO CAMPUS SAFETY PRO5 VISIONS ON OTHER LAWS.—Nothing in the amendments 

6 made by subsection (a)(3), shall be construed to invalidate 

7 or limit rights, remedies, procedures, or legal standards 

8 available to victims of discrimination under any other Fed9 eral law or law of a State or political subdivision of a 

10 State, including title VI of the Civil Rights Act of 1964 

11 (42 U.S.C. 2000d et seq.), title IX of the Education 

12 Amendments of 1972 (20 U.S.C. 1681 et seq.), section 

13 504 or 505 of the Rehabilitation Act of 1973 (29 U.S.C. 

14 794, 794a), or the Americans with Disabilities Act of 1990 

15 (42 U.S.C. 12101 et seq.). The obligations imposed by this 

16 Act are in addition to those imposed by title VI of the 

17 Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title 

18 IX of the Education Amendments of 1972 (20 U.S.C. 

19 1681 et seq.), section 504 of the Rehabilitation Act of 

20 1973 (29 U.S.C. 794), and the Americans with Disabil21 ities Act of 1990 (42 U.S.C. 12101 et seq.). 

22 (c) EFFECTIVE DATE FOR TERMINATION OF IN23 COME-SENSITIVE REPAYMENT PLAN REFERENCE.—The 

24 amendment made by subsection (a)(2) shall take effect on 

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1 the date that is 1 year after the date of enactment of this 

2 Act. 

3 SEC. 487. IMPROVEMENTS TO NATIONAL STUDENT LOAN 

4 DATA SYSTEM. 

5 (a) AMENDMENTS.—Section 485B (20 U.S.C. 

6 1092b) is amended— 

7 (1) in subsection (a), by inserting ‘‘and loans 

8 made or insured under part A of title VII, or part 

9 E of title VIII, of the Public Health Service Act (42 

10 U.S.C. 292 et seq., 296 et seq.),’’ after ‘‘parts D 

11 and E,’’; and 

12 (2) by striking subsection (h) and inserting the 

13 following: 

14 ‘‘(h) INTEGRATION OF DATABASES.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall inte16 grate the National Student Loan Data System with 

17 the Federal Pell Grant applicant and recipient data18 bases as of January 1, 1994, and any other data19 bases containing information on participation in pro20 grams under this title. 

21 ‘‘(2) DEPARTMENT OF DEFENSE AND DEPART22 MENT OF VETERANS AFFAIRS INFORMATION.— 

23 ‘‘(A) IN GENERAL.—In order to incor24 porate the military and veteran status of bor25 rowers into the National Student Loan Data 

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1 System, the Secretary shall integrate the Na2 tional Student Loan Data System with informa3 tion from— 

4 ‘‘(i) the Department of Defense, in5 cluding the Defense Manpower Data Cen6 ter; and 

7 ‘‘(ii) the Department of Veterans Af8 fairs, including data about veterans who 

9 are eligible for educational assistance 

10 under laws administered by the Secretary 

11 of Veterans Affairs. 

12 ‘‘(B) MEMORANDA OF UNDERSTANDING.— 

13 The Secretary shall enter into any memoranda 

14 of understanding or other agreements that are 

15 necessary to carry out this paragraph.’’; and 

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

17 ‘‘(i) PUBLIC HEALTH SERVICE LOANS.—The Sec18 retary shall include in the National Student Loan Data 

19 System established pursuant to subsection (a) information 

20 regarding loans made under— 

21 ‘‘(1) subpart II of part A of title VII of the 

22 Public Health Service Act; or 

23 ‘‘(2) part E of title VIII of the Public Health 

24 Service Act. 

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1 ‘‘(j) PRIVATE EDUCATION LOAN INFORMATION.— 

2 The Secretary shall include in the National Student Loan 

3 Data System established pursuant to subsection (a) the 

4 information regarding private education loans that is de5 termined necessary by the Director of the Bureau of Con6 sumer Financial Protection, in coordination with the Sec7 retary, to be included pursuant to section 128(e)(13) of 

8 the Truth in Lending Act (15 U.S.C. 1638(e)(13)).’’. 

9 (b) REPORTS.— 

10 (1) PLAN.—Not later than 90 days after the 

11 date of the enactment of this Act, the Secretary of 

12 Education shall submit to the appropriate commit13 tees of Congress a report that includes a plan to im14 plement the Department of Defense and Department 

15 of Veterans Affairs data integration provision de16 scribed under section 485B(h)(2) of the Higher 

17 Education Act of 1965, as amended by subsection 

18 (a)(2). 

19 (2) FOLLOW-UP REPORT.—If the Secretary of 

20 Education has not implemented the Department of 

21 Defense and Department of Veterans Affairs data 

22 integration provision described under section 

23 485B(h)(2) of the Higher Education Act of 1965, as 

24 amended by subsection (a)(2), by the date that is 1 

25 year after the date of enactment of this Act, the 

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1 Secretary of Education shall submit, by such date, 

2 a report that includes an explanation of why such 

3 provision has not been implemented. 

4 SEC. 488. COMPETENCY-BASED EDUCATION DEMONSTRA5 TION PROGRAM. 

6 Part G of title IV (20 U.S.C. 1088 et seq.) is further 

7 amended by inserting after section 486A the following: 

8 ‘‘SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRA9 TION PROGRAM. 

10 ‘‘(a) PURPOSE.—It is the purpose of this section— 

11 ‘‘(1) to allow a demonstration program that is 

12 monitored by the Secretary to explore ways of deliv13 ering education and disbursing student financial aid 

14 that are based on demonstrating competencies rath15 er than credit hours; 

16 ‘‘(2) to potentially lower the cost of postsec17 ondary education and reduce the time needed to at18 tain a postsecondary degree; and 

19 ‘‘(3) to help determine— 

20 ‘‘(A) the specific statutory and regulatory 

21 requirements that should be modified to provide 

22 greater access to high-quality competency-based 

23 education programs, which may be independent 

24 of, or combined with, traditional credit hour or 

25 clock hour programs; 

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1 ‘‘(B) the most effective means of delivering 

2 competency-based education; and 

3 ‘‘(C) the appropriate level and distribution 

4 methodology of Federal assistance for students 

5 enrolled in competency-based education. 

6 ‘‘(b) DEFINITIONS.—In this section: 

7 ‘‘(1) COMPETENCY-BASED EDUCATION.—The 

8 term ‘competency-based education’ means an aca9 demic program that— 

10 ‘‘(A) uses direct assessment of learning for 

11 any of its components as a substitute for tradi12 tional coursework measured in credit-hours; and 

13 ‘‘(B) upon successful completion, results in 

14 the attainment of a 2-year or 4-year postsec15 ondary degree or certificate. 

16 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en17 tity’ means any of the following: 

18 ‘‘(A) An institution of higher education, as 

19 defined in section 101, that is eligible to partici20 pate in programs under this title. 

21 ‘‘(B) A consortia of institutions of higher 

22 education that meet the requirements in sub23 paragraph (A). 

24 ‘‘(c) DEMONSTRATION PROGRAMS AUTHORIZED.— 

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1 ‘‘(1) IN GENERAL.—The Secretary shall carry 

2 out a competency-based education demonstration 

3 program under which the Secretary selects, in ac4 cordance with subsection (e), eligible entities to par5 ticipate and receive waivers described in paragraph 

6 (2), in order to enable the eligible entities to offer 

7 competency-based education programs. 

8 ‘‘(2) WAIVERS.— 

9 ‘‘(A) IN GENERAL.—The Secretary may 

10 waive, for an eligible entity participating in the 

11 demonstration program under this section, any 

12 requirement of subsections (a) and (f) of sec13 tion 481 as such subsections relate to require14 ments under this Act for a minimum number of 

15 weeks of instruction (including any regulation 

16 promulgated under such subsections). 

17 ‘‘(B) ADDITIONAL REQUIREMENTS ELIGI18 BLE FOR WAIVER.— 

19 ‘‘(i) IN GENERAL.—In addition to any 

20 waiver authorized under subparagraph (A), 

21 the Secretary may waive any requirements 

22 described in clause (ii) for an eligible enti23 ty that requests such a waiver in the appli24 cation submitted under subsection (d), if— 

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1 ‘‘(I) the Secretary determines 

2 that the eligible entity has proposed a 

3 high-quality plan for competency4 based education that requires such 

5 waiver; 

6 ‘‘(II) the eligibility entity has 

7 provided equivalent metrics to each of 

8 the requirements described in clause 

9 (ii) for which the eligible entity is 

10 seeking a waiver; and 

11 ‘‘(III) the Secretary has certified 

12 that all requirements being waived 

13 have such high-quality equivalents. 

14 ‘‘(ii) DESCRIPTION OF ADDITIONAL

15 REQUIREMENTS.—Requirements described 

16 in this clause are requirements under this 

17 part, part F, or title I (including any regu18 lations promulgated under such parts or 

19 title) that inhibits the operation of com20 petency-based education, related to— 

21 ‘‘(I) minimum weeks of instruc22 tional time; 

23 ‘‘(II) credit hour or clock hour 

24 equivalencies; and 

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1 ‘‘(III) the definitions of the terms 

2 ‘academic year’, ‘full-time student’, 

3 ‘standard term’, ‘non-term’, ‘non4 standard term’, ‘term’, ‘satisfactory 

5 academic progress’, ‘educational activ6 ity’, ‘program of study’, and ‘payment 

7 period’. 

8 ‘‘(d) APPLICATION.— 

9 ‘‘(1) IN GENERAL.—Each eligible entity desir10 ing to participate in the demonstration program 

11 under this section shall submit to the Secretary an 

12 application at such time, in such manner, and con13 taining such information as the Secretary shall re14 quire. 

15 ‘‘(2) CONTENTS.—Each application submitted 

16 under paragraph (1) shall include— 

17 ‘‘(A) a description of the competency-based 

18 education to be offered by the eligible entity 

19 through the demonstration program; 

20 ‘‘(B) a detailed description of the proposed 

21 academic delivery, business, and financial mod22 els to be used in the program, including brief 

23 explanations of how the program’s approach 

24 would result in the achievement and assessment 

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1 of competencies and how the approach would 

2 differ from standard credit hour approaches; 

3 ‘‘(C)(i) a summary of the evidence-based 

4 analysis of the financial impact of the proposed 

5 program on the institution, its prospective stu6 dents, and the Federal government; and 

7 ‘‘(ii) a written assurance that— 

8 ‘‘(I) the summary presented to the 

9 Secretary is a good-faith representation of 

10 all the information available to the institu11 tion at the time of the application; and 

12 ‘‘(II) all material internal analyses 

13 and supporting data used in the summary 

14 shall be retained and made available to the 

15 Secretary upon request for a period of not 

16 less than 5 years after the approval of the 

17 proposed program; 

18 ‘‘(D) a written assurance that the program 

19 fully conforms to the institution’s academic 

20 policies, and that any degrees or certificates 

21 conferred through the program shall be equiva22 lent to the institution’s traditional degrees or 

23 certificates; 

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1 ‘‘(E) documentation of approval of the 

2 competency-based demonstration program from 

3 a regional accrediting agency or association; 

4 ‘‘(F) a description of the statutory and 

5 regulatory requirements described in subsection 

6 (c)(2) for which a waiver is sought, the reasons 

7 for which each such waiver is sought, and how 

8 the institution proposes to mitigate any risks to 

9 students or the Federal Government as a result 

10 of the waiver; 

11 ‘‘(G) a description of the entity’s proposal 

12 for determining a student’s Federal student aid 

13 eligibility under this title and awarding and dis14 tributing such aid, including safeguards to en15 sure that students are making satisfactory 

16 progress that warrants disbursement of such 

17 aid, and an explanation of how the proposal en18 sures that the program does not require the ex19 penditure of additional Federal funding beyond 

20 what the student is eligible for; 

21 ‘‘(H) a description of the students to 

22 whom competency-based education will be of23 fered, including an assurance that the eligible 

24 entity will include a minimum of 100 and a 

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1 maximum of 2,000 eligible students as part of 

2 the program; 

3 ‘‘(I) a description of the goals the entity 

4 hopes to achieve through the use of com5 petency-based education, including evidence6 based estimates of cost savings to the institu7 tion, students, and the Federal Government as 

8 a direct result of the delivery method being pro9 posed; 

10 ‘‘(J) a description of how the entity plans 

11 to maintain program quality and integrity, con12 sistent with part H; 

13 ‘‘(K) an assurance that the entity will fully 

14 cooperate with the ongoing evaluations of the 

15 demonstration program under subsection (f)(3); 

16 ‘‘(L) an assurance that the entity will not 

17 require the expenditure of additional Federal 

18 funding to implement the proposed program; 

19 ‘‘(M) an evidence-based estimate of the 

20 percentage of students the program would en21 roll whom the institution estimates will success22 fully complete the program, satisfy all academic 

23 requirements, and attain the academic creden24 tial the program is intended to confer; 

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1 ‘‘(N) a written assurance that the eligible 

2 entity will comply with section 444 of the Gen3 eral Education Provisions Act (commonly re4 ferred to as the ‘Family Educational Rights 

5 and Privacy Act of 1974’) by agreeing to obtain 

6 a signed consent form from each student who 

7 will participate in the program, before the stu8 dent enrolls in the program or receives Federal 

9 student financial aid under this title for the 

10 program, that will allow the Secretary to con11 duct an evaluation of the program’s effective12 ness, including its impact on post-enrollment 

13 earnings through matching data with other 

14 Federal agencies, as long as— 

15 ‘‘(i) no information from the student’s 

16 education record would be permanently 

17 stored with any other Federal agency; and 

18 ‘‘(ii) no student’s personally identifi19 able information would be publicly dis20 closed; and 

21 ‘‘(O) such other information as the Sec22 retary may require. 

23 ‘‘(e) SELECTION.— 

24 ‘‘(1) IN GENERAL.—Not later than 180 days 

25 after the date of enactment of the Higher Education 

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1 Affordability Act, the Secretary shall select not more 

2 than 15 eligible entities to participate in the dem3 onstration program under this section. 

4 ‘‘(2) CONSIDERATIONS.—In selecting eligible 

5 entities to participate in the demonstration program 

6 under this section, the Secretary shall— 

7 ‘‘(A) not select any eligible entity for which 

8 the estimated percentage of students in the pro9 posed program expected to complete their de10 gree, as provided in the application under sub11 section (d)(2)(O), is lower than the percentage 

12 of students enrolled in traditional academic pro13 grams at the institution that complete their de14 gree or program of study; 

15 ‘‘(B) consider the number and quality of 

16 applications received; 

17 ‘‘(C) consider the eligible entity’s— 

18 ‘‘(i) demonstrated quality, as meas19 ured through outcome-based metrics of 

20 student success; 

21 ‘‘(ii) financial responsibility; 

22 ‘‘(iii) administrative capability, includ23 ing the ability to successfully execute the 

24 program as described; 

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1 ‘‘(iv) commitment and ability to effec2 tively finance a demonstration program as 

3 proposed; 

4 ‘‘(v) demonstrated administrative ca5 pability and expertise to evaluate learning 

6 based on measures other than credit hours 

7 or clock hours; 

8 ‘‘(vi) commitment to allow random as9 signment and collection of school records 

10 of eligible program applicants, in full com11 pliance with section 444 of the General 

12 Education Provisions Act (commonly re13 ferred to as the ‘Family Educational 

14 Rights and Privacy Act of 1974’), if nec15 essary, in order to allow for the evaluation 

16 of program impacts described in subsection 

17 (f)(2)(B); and 

18 ‘‘(vii) ability to translate competencies 

19 to traditional credit hours to help facilitate 

20 the ability of students participating in the 

21 demonstration project to transfer to an22 other institution of higher education if the 

23 student so desires; 

24 ‘‘(D) ability to offer a financial guarantee 

25 to assume all Federal loans made under part D 

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1 to students who demonstrate that the education 

2 received did not lead to improved employment 

3 prospects; 

4 ‘‘(E) consider the Department’s capacity to 

5 oversee and monitor each eligible institution’s 

6 participation; and 

7 ‘‘(F) ensure the participation of a diverse 

8 group of institutions of higher education (in9 cluding institutions within eligible entities de10 scribed in subparagraph (B) or (C) of sub11 section (b)(2)) with respect to size, mission, and 

12 geographic distribution of the institutions. 

13 ‘‘(3) NOTIFICATION.—Not later than 180 days 

14 after the date of enactment of the Higher Education 

15 Affordability Act, the Secretary shall make available 

16 to the authorizing committees, and to the public 

17 through the Department’s website, a list of the eligi18 ble entities selected to participate in the demonstra19 tion program under this section. Such list shall in20 clude, for each such eligible entity, the specific statu21 tory and regulatory requirements that the Secretary 

22 is waiving for the program and a description of the 

23 competency-based education courses to be offered. 

24 ‘‘(f) EVALUATIONS AND REPORTS.— 

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1 ‘‘(1) ELIGIBLE ENTITY REPORT.—Each eligible 

2 entity that participates in the demonstration pro3 gram under this section shall prepare and submit to 

4 the Secretary an annual report that includes all of 

5 the following: 

6 ‘‘(A) For each student participating in the 

7 competency-based education program offered by 

8 the eligible entity— 

9 ‘‘(i) the number of postsecondary 

10 credit hours the student had earned prior 

11 to enrollment in the program; 

12 ‘‘(ii) the period of time between the 

13 admission of the student in the program 

14 and the first assessment of the student’s 

15 learning; 

16 ‘‘(iii) the number of credits or com17 petencies and progress towards completion 

18 that the student acquired through the pro19 gram and the period of time during which 

20 the student acquired such credits, com21 petencies, and made such progress; 

22 ‘‘(iv) an identification of whether the 

23 student is participating in the program 

24 and only receiving competency-based edu25 cation or participating in the program 

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1 while also taking courses offered in credit 

2 or clock hours; 

3 ‘‘(v) the percentage of assessments of 

4 student learning that the student passed 

5 on the first attempt, during the period of 

6 the student’s participation in the program; 

7 and 

8 ‘‘(vi) the percentage of assessments of 

9 student learning that the student passed 

10 on the second attempt, and the average pe11 riod of time between the student’s first and 

12 second attempts, during the period of the 

13 student’s participation in the program. 

14 ‘‘(B) The rates of retention in the program 

15 for participating students, for each 6-month pe16 riod of the program. 

17 ‘‘(C) Graduation rates for participating 

18 students and the average period of time for de19 gree completion by a student participating in 

20 the program, disaggregated based on student 

21 status as a first-year, second-year, third-year, 

22 or fourth-year student when the student en23 rolled in the program and status with respect to 

24 participating in courses offered in credit or 

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1 clock hours while also participating in com2 petency-based education. 

3 ‘‘(D) Issues related to awarding and dis4 bursing student financial assistance for com5 petency-based education. 

6 ‘‘(E) The job placement rates of all stu7 dents who participated in the program, as 

8 measured in the second fiscal year after the 

9 completion of the program. The Secretary may 

10 offer guidance for the purposes of making this 

11 calculation. 

12 ‘‘(F) An analysis of the mean debt to earn13 ings ratio, and the mean debt to discretionary 

14 earnings ratio, of the students who participated 

15 in the program, as measured in the second fis16 cal year after the completion of the program— 

17 ‘‘(i) in the aggregate and 

18 disaggregated for students who earned the 

19 degree or credential and students who did 

20 not earn the degree or credential; and 

21 ‘‘(ii) calculated for each quintile of 

22 students, based on the salary of the stu23 dents after participation in the program. 

24 ‘‘(G) A compilation of quality reviews by 

25 students who participated in the program. 

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1 ‘‘(H) Such other information as the Sec2 retary may require. 

3 ‘‘(2) EVALUATION.—The Secretary shall— 

4 ‘‘(A) in the aggregate, annually evaluate 

5 the program offered by each eligible entity par6 ticipating in the demonstration program under 

7 this section to review— 

8 ‘‘(i) the extent to which the eligible 

9 entity has met the goals set forth in its ap10 plication under subsection (d), including 

11 the progress of the eligible entity based on 

12 the measures of program quality assur13 ance; 

14 ‘‘(ii) the number and types of stu15 dents participating in the competency16 based education programs offered, includ17 ing the progress of participating students 

18 toward recognized degrees and the extent 

19 to which participation, postsecondary edu20 cation retention, postsecondary education 

21 completion, employment after graduation, 

22 and debt repayment increased or decreased 

23 for participating students as compared to 

24 the general postsecondary education stu25 dent population; 

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1 ‘‘(iii) obstacles related to student fi2 nancial assistance for competency-based 

3 education; and 

4 ‘‘(iv) the extent to which statutory or 

5 regulatory requirements not waived under 

6 the demonstration program present dif7 ficulties for students or institutions of 

8 higher education; and 

9 ‘‘(B) acting through the Director of the In10 stitute of Education Sciences— 

11 ‘‘(i) evaluate the implementation and 

12 impact of the activities allowed under this 

13 section; and 

14 ‘‘(ii) identify promising practices re15 garding competency-based education and 

16 disseminate research on these practices. 

17 ‘‘(3) ANNUAL REPORT.—The Secretary shall 

18 annually prepare and submit to the authorizing com19 mittees a report that includes the following: 

20 ‘‘(A) The evaluations of the demonstration 

21 programs required under paragraph (3). 

22 ‘‘(B) The number and types of students re23 ceiving assistance under this title who partici24 pate in competency-based education programs 

25 supported under this section. 

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1 ‘‘(C) The postsecondary education reten2 tion and completion rates of students partici3 pating in such programs. 

4 ‘‘(D) The job placement rates of partici5 pating students, as measured 2 fiscal years 

6 after the completion of such programs. 

7 ‘‘(E) An analysis of the mean debt to earn8 ings ratio, and the mean debt to discretionary 

9 earnings ratio of the students who participated 

10 in the program, as measured in the second fis11 cal year after the completion of the program— 

12 ‘‘(i) in the aggregate and 

13 disaggregated for students who earned the 

14 degree or credential and students who did 

15 not the degree or credential; and 

16 ‘‘(ii) calculated for each quintile of 

17 students, based on the salary of the stu18 dents after participation in the program. 

19 ‘‘(F) Any statutory changes the Secretary 

20 would recommend that are designed to support 

21 and enhance the expansion of competency-based 

22 education. 

23 ‘‘(G) Other such measures as determined 

24 by the Secretary. 

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1 ‘‘(g) OVERSIGHT.—In conducting the demonstration 

2 program under this section, the Secretary shall, on a con3 tinuing basis— 

4 ‘‘(1) ensure that eligible entities participating in 

5 the program comply with the requirements of this 

6 title (other than the requirements that are waived 

7 under subsection (c)(2)); 

8 ‘‘(2) provide technical assistance; 

9 ‘‘(3) monitor fluctuations in the student popu10 lation enrolled in the participating eligible entities; 

11 and 

12 ‘‘(4) consult with appropriate accrediting agen13 cies or associations and appropriate State regulatory 

14 authorities regarding the program. 

15 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated to carry out this section 

17 such sums as may be necessary for fiscal year 2015 and 

18 each of the five succeeding fiscal years.’’. 

19 SEC. 489. PROGRAM PARTICIPATION AGREEMENTS. 

20 (a) SENSE OF THE SENATE REGARDING INCENTIVE

21 COMPENSATION.—It is the sense of the Senate that— 

22 (1) incentive compensation is an inappropriate 

23 mechanism in the delivery of higher education for in24 stitutions of higher education wishing to participate 

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1 in programs under title IV of the Higher Education 

2 Act of 1965 (20 U.S.C. 1001 et seq.); and 

3 (2) the ban on incentive compensation under 

4 section 487(a)(20) of the Higher Education Act of 

5 1965 (20 U.S.C. 1094(a)(20)), as amended by sub6 section (b), is intended to preclude its use by institu7 tions wishing to participate in such programs, at any 

8 point in the recruitment, enrollment, education, or 

9 employment placement of students. 

10 (b) AMENDMENTS.—Section 487 (20 U.S.C. 1094) is 

11 amended— 

12 (1) in subsection (a)— 

13 (A) in paragraph (19), by inserting ‘‘hous14 ing facilities,’’ after ‘‘libraries,’’; and 

15 (B) by striking paragraph (20) and insert16 ing the following: 

17 ‘‘(20)(A)(i) The institution or any third party 

18 acting on the institution’s behalf, including an insti19 tution affiliate or service provider to the institution, 

20 will not provide any commission, bonus, or other in21 centive payment to any person or entity at any 

22 phase of the academic process based directly or indi23 rectly on success in— 

24 ‘‘(I) securing enrollments or securing or 

25 awarding financial aid; 

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1 ‘‘(II) performance in educational 

2 coursework; 

3 ‘‘(III) graduation; 

4 ‘‘(IV) job placement; or 

5 ‘‘(V) any other academic facet of a stu6 dent’s enrollment in an institution of higher 

7 education. 

8 ‘‘(ii) The requirements of subparagraph (A) 

9 shall not apply to the recruitment of foreign stu10 dents residing in foreign countries who are not eligi11 ble to receive Federal student assistance. 

12 ‘‘(B) The institution affirmatively acknowledges 

13 that the provision of incentive compensation to em14 ployees of institutions, institution affiliates, or serv15 ice providers retained by the institution at any point 

16 in the recruitment, enrollment, education, or employ17 ment placement of students is a prohibited activity 

18 under subparagraph (A)(i). 

19 ‘‘(C) The institution will provide, upon hiring 

20 an employee or contracting with a service provider, 

21 and not less than once per calendar year, official no22 tice, on a form developed by the Secretary, to em23 ployees and service providers (and employees of serv24 ice providers) contracted by the institution of the 

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1 statutory and regulatory requirements pursuant to 

2 this section. 

3 ‘‘(D) The institution will not enter into any 

4 contract with a third party acting on its behalf, in5 cluding institution affiliates or service providers, 

6 that contains a revenue-sharing component premised 

7 in full or in any part on any practice described in 

8 subparagraph (A)(i).’’; 

9 (C) by striking paragraph (24) and insert10 ing the following: 

11 ‘‘(24) The institution certifies that the institu12 tion— 

13 ‘‘(A) has designated an appropriate staff 

14 person, who may also be a coordinator for other 

15 programs, as a single point of contact to assist 

16 homeless children and youths (as such term is 

17 defined in section 725 of the McKinney-Vento 

18 Homeless Assistance Act (42 U.S.C. 11434a)) 

19 and foster care children and youth in accessing 

20 and completing postsecondary education; 

21 ‘‘(B) posts public notice about student fi22 nancial assistance and other assistance available 

23 to homeless children and youths and foster care 

24 children and youth, including their eligibility as 

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1 independent students under subparagraphs (B) 

2 and (H) of sections 480(d)(1); 

3 ‘‘(C) has developed a plan for how home4 less children and youths and foster care chil5 dren and youth can access housing resources 

6 during and between academic terms, through 

7 means that may include access to on-campus 

8 housing during school breaks and a list of hous9 ing resources in the community that provide 

10 short-term housing; and 

11 ‘‘(D) has included in the institution’s ap12 plication for admission questions (to be an13 swered voluntarily) regarding the applicant’s 

14 status as a homeless child or youth or foster 

15 care child or youth, which the applicant can vol16 untarily choose to answer for the limited pur17 pose of being provided information about finan18 cial aid or any other available assistance.’’; 

19 (i) in paragraph (25)(A)(ii), by strik20 ing ‘‘subsection (e)’’ and inserting ‘‘sub21 section (d)’’; 

22 (ii) in paragraph (27), by striking 

23 ‘‘subsection (h)’’ and inserting ‘‘subsection 

24 (g)’’; 

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1 (D) by striking paragraph (28) and insert2 ing the following: 

3 ‘‘(28)(A) The institution shall— 

4 ‘‘(i) upon the request of a private edu5 cational lender, acting in connection with an ap6 plication initiated by a borrower for a private 

7 education loan in accordance with section 

8 128(e)(3) of the Truth in Lending Act, pro9 vide— 

10 ‘‘(I) certification to such private edu11 cational lender— 

12 ‘‘(aa) that the student who initi13 ated the application for the private 

14 education loan, or on whose behalf the 

15 application was initiated, is enrolled 

16 or is accepted for enrollment at the 

17 institution; 

18 ‘‘(bb) of such student’s cost of 

19 attendance at the institution as deter20 mined under part F of this title; and 

21 ‘‘(cc) of the difference between— 

22 ‘‘(AA) the cost of attendance 

23 at the institution; and 

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1 ceived under this title, if the stu2 dent pursued such assistance, 

3 and other assistance known to 

4 the institution, as applicable; or 

5 ‘‘(II) in the case of a private edu6 cation loan that the institution may not 

7 certify because the private education loan 

8 does not meet the requirements described 

9 in subsection (D), provide notice to the pri10 vate educational lender of the institution’s 

11 refusal to certify the private education 

12 loan; and 

13 ‘‘(ii) provide the certification described in 

14 clause (i)(I), or notice of the refusal to provide 

15 certification described in clause (i)(II), as the 

16 case may be, or notify the creditor that the in17 stitution has received the request for certifi18 cation and will need additional time to comply 

19 with the certification request— 

20 ‘‘(I) within 15 business days of receipt 

21 of such certification request; and 

22 ‘‘(II) only after the institution has 

23 completed the activities described in sub24 paragraph (B). 

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1 ‘‘(B) The institution shall, upon receipt of a 

2 certification request described in subparagraph 

3 (A)(i), and prior to providing the certification under 

4 subparagraph (A)(i)(I) or providing notice of the re5 fusal to provide certification under subparagraph 

6 (A)(i)(II)— 

7 ‘‘(i) determine whether the student who 

8 initiated the application for the private edu9 cation loan, or on whose behalf the application 

10 was initiated, has applied for and exhausted the 

11 Federal financial assistance available to such 

12 student under this title and inform the student 

13 accordingly; and 

14 ‘‘(ii) provide the student whose loan appli15 cation has prompted the certification request by 

16 a private education lender, as described in sub17 paragraph (A)(i), with the following information 

18 and disclosures: 

19 ‘‘(I) The availability of, and the stu20 dent’s potential eligibility for, Federal fi21 nancial assistance under this title, includ22 ing the explanation of the benefits provided 

23 under Federal student loans developed by 

24 the Secretary under section 483A(b). 

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1 ‘‘(II) The student’s ability to select a 

2 private educational lender of the student’s 

3 choice. 

4 ‘‘(III) The impact of a proposed pri5 vate education loan on the student’s poten6 tial eligibility for other financial assistance, 

7 including Federal financial assistance 

8 under this title. 

9 ‘‘(IV) The student’s right to accept or 

10 reject a private education loan within the 

11 30-day period following a private edu12 cational lender’s approval of a student’s 

13 loan application and the right of a bor14 rower of a private education loan to cancel 

15 the loan within a 3-day period, in accord16 ance with paragraphs (6) and (7) of sec17 tion 128(e) of the Truth in Lending Act. 

18 ‘‘(C) For purposes of this paragraph, the term 

19 ‘private educational lender’ has the meaning given 

20 such term in section 140 of the Truth in Lending 

21 Act (15 U.S.C. 1650). 

22 ‘‘(D) In the case of a private education loan 

23 that includes a cosigner, the institution shall not 

24 provide certification to a private educational lender 

25 under this paragraph unless the private educational 

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1 lender agrees to send a statement to the borrower’s 

2 cosigner, annually notifying the cosigner of the 

3 terms, conditions, and status of such private edu4 cation loan.’’; and 

5 (E) by adding at the end the following: 

6 ‘‘(30)(A) The institution— 

7 ‘‘(i) shall not include a predispute arbitra8 tion agreement in any contract with a student 

9 or prospective student for enrollment at the in10 stitution; and 

11 ‘‘(ii) shall agree that, in any case where a 

12 contract for enrollment at the institution en13 tered into by a student before the date of enact14 ment of the Higher Education Affordability Act 

15 included a predispute arbitration agreement, 

16 such agreement shall be invalid and unenforce17 able by the institution. 

18 ‘‘(B) In this paragraph, the term ‘predispute 

19 arbitration agreement’ means any agreement to arbi20 trate a dispute that had not yet arisen at the time 

21 of the making of the agreement. 

22 ‘‘(31) The institution will provide the Secretary 

23 with any information that the Secretary requests in 

24 order to meet the default prevention requirements of 

25 section 435(a)(7). 

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1 ‘‘(32)(A) If the institution has a student default 

2 risk for a fiscal year, as calculated by the Secretary, 

3 of 0.1 or greater, the institution will, for such 

4 year— 

5 ‘‘(i) provide an individual accepted for en6 rollment at the institution with a waiting pe7 riod, beginning on the date that the individual 

8 receives notification of the acceptance and last9 ing for not less than 2 weeks, before the indi10 vidual is required to enroll in the institution, 

11 pay tuition charges, or sign a master promis12 sory note for a loan under this title, in order to 

13 give the individual time to consider, and com14 pare among postsecondary options, program 

15 costs at the institution and employment pros16 pects upon completion of a program of study; 

17 ‘‘(ii) ensure that the receipt of financial 

18 aid, incentives, or other benefits is not made 

19 contingent on an individual confirming enroll20 ment before the end of the individual’s waiting 

21 period; 

22 ‘‘(iii) inform the individual, in writing and 

23 in a manner determined by the Secretary at the 

24 time of the acceptance notification, of— 

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1 ‘‘(I) the individual’s right to the 2- 

2 week waiting period under clause (i) begin3 ning on the date that the individual re4 ceives notification of the acceptance; and 

5 ‘‘(II) the reason why the institution is 

6 required to provide such waiting period; 

7 ‘‘(iv) notify an individual accepted for en8 rollment at the institution of all financial aid 

9 determinations by not less than 1 week before 

10 the enrollment confirmation deadline, if all re11 quested application forms are received from the 

12 individual on time; and 

13 ‘‘(v) disclose to an individual accepted for 

14 enrollment, in a manner determined by the Sec15 retary, that the individual may file a complaint 

16 through the complaint tracking system estab17 lished under section 161 if the individual be18 lieves that the institution has violated any pro19 vision of this paragraph. 

20 ‘‘(B) If an institution described in subpara21 graph (A) fails to meet the requirements of this 

22 paragraph, the institution shall be subject to a civil 

23 penalty in accordance with section 489A. 

24 ‘‘(C) Notwithstanding subparagraph (A), the 

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1 tunity to comment, elect to replace the use of the 

2 student default risk percentage threshold established 

3 under subparagraph (A) with a loan repayment rate 

4 threshold calculated in accordance with section 

5 483D(b). 

6 ‘‘(33) In the case of an institution that enrolls 

7 during an academic year more than 100 students 

8 who are veterans, the institution shall certify that 

9 the institution has developed and implemented a 

10 plan to ensure the success of veterans at that insti11 tution. To the extent practicable, the institution 

12 shall make the plan, and associated policies, public 

13 and accessible to students who are veterans. Such 

14 plan shall include the following: 

15 ‘‘(A) The designation of certain faculty or 

16 staff at the institution who will serve as a point 

17 of contact for veterans— 

18 ‘‘(i) within campus offices, including 

19 the admissions office; and 

20 ‘‘(ii) during any orientation process 

21 for newly enrolled students. 

22 ‘‘(B) The establishment of a working 

23 group that will be responsible for veterans 

24 issues. 

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1 ‘‘(C) A description of disability services 

2 that are available to meet the needs of disabled 

3 students who are veterans. 

4 ‘‘(D) A plan for how the institution will 

5 identify students who are veterans through the 

6 application process, or through other processes, 

7 to provide better assistance in the receipt of 

8 educational assistance under laws administered 

9 by the Secretary of Veterans Affairs or the Sec10 retary of Defense. 

11 ‘‘(E) A description of how the institution 

12 will evaluate and maximize the number of cred13 its students can receive from military training 

14 and service. 

15 ‘‘(34) The institution, and the officers at the 

16 institution, will not make any substantial misrepre17 sentation, as described in section 489A(a)(1)(A). 

18 ‘‘(35) The institution will adopt policies regard19 ing academic leaves of absence, readmission, and 

20 dismissal for psychiatric reasons that are com21 parable to such policies for physical health and other 

22 medical reasons, including policies that include the 

23 same guarantees of due process and appeal.’’; 

24 (2) in subsection (c)— 

25 (A) in paragraph (1)— 

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1 (i) in subparagraph (A)(i), by striking 

2 ‘‘available’’ and inserting ‘‘made publicly 

3 available and provided’’. 

4 (ii) by striking subparagraphs (F) and 

5 (G); 

6 (iii) by redesignating subparagraphs 

7 (H) and (I) as subparagraphs (F) and (G), 

8 respectively; and 

9 (iv) in subparagraph (F), as redesig10 nated by clause (iii), by striking ‘‘under 

11 paragraph (3)(B)’’ and inserting ‘‘on the 

12 institution of higher education under sec13 tion 489A’’; and 

14 (B) by striking paragraph (3); and 

15 (C) by redesignating paragraphs (4) 

16 through (7) as paragraphs (3) through (6), re17 spectively; 

18 (3) by striking subsection (d); 

19 (4) by redesignating subsections (e) through (j) 

20 as subsections (d) through (i), respectively; and 

21 (5) in subsection (f)(1) (as redesignated by 

22 paragraph (4)), by striking ‘‘subsection (e)(2)’’ and 

23 inserting ‘‘subsection (d)(2)’’. 

24 (c) EFFECTIVE DATE REGARDING PRIVATE LOAN

25 CERTIFICATION.—The amendment made by subsection 

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1 (b)(1)(D) shall take effect on the effective date of the reg2 ulations described in section 1012(b). 

3 SEC. 490. CIVIL PENALTIES. 

4 Part G of title IV is further amended by inserting 

5 after section 489 the following: 

6 ‘‘SEC. 489A. CIVIL PENALTIES AND OTHER REMEDIES. 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) SUBSTANTIAL MISREPRESENTATION OR

9 OTHER SERIOUS VIOLATION.—The term ‘substantial 

10 misrepresentation or other serious violation’ means 

11 any of the following: 

12 ‘‘(A) A substantial misrepresentation re13 garding— 

14 ‘‘(i) the nature of the educational pro15 gram of an institution of higher education; 

16 ‘‘(ii) the financial charges of the insti17 tution; 

18 ‘‘(iii) the space availability in a pro19 gram of the institution for which a student 

20 is considering enrollment; 

21 ‘‘(iv) the admission requirements of 

22 the institution; 

23 ‘‘(v) the transferability of credits from 

24 the institution; 

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1 ‘‘(vi) whether a program of the insti2 tution meets the necessary standards to 

3 qualify students to sit for licensing exami4 nations, or obtain certification required as 

5 a precondition for employment, in the 

6 State in which the students reside; 

7 ‘‘(vii) the passage rates of students at 

8 the institution in obtaining certification re9 quirements; 

10 ‘‘(viii) the passage rates of students 

11 who sit for licensing examinations; or 

12 ‘‘(ix) the employability of the grad13 uates of the institution. 

14 ‘‘(B) Failure of an institution subject to 

15 the requirements of section 487(a)(32) to com16 ply with such section. 

17 ‘‘(C) A knowing and willful misuse of Fed18 eral student aid from any source. 

19 ‘‘(D) A violation of section 487(a)(20). 

20 ‘‘(E) A violation of the default manipula21 tion regulations promulgated by the Secretary 

22 under section 435(m)(3). 

23 ‘‘(F) Failure to comply with the program 

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1 cluding any disclosure requirement described in 

2 paragraph (2)(C) or (5) of section 498A(b). 

3 ‘‘(G) A violation of the program integrity 

4 regulations promulgated by the Secretary under 

5 this Act. 

6 ‘‘(H) A violation of this Act that the Sec7 retary has determined, by regulation, to be a 

8 serious violation for purposes of this section. 

9 ‘‘(2) OFFICER OF AN INSTITUTION OF HIGHER

10 EDUCATION.—The term ‘officer of an institution of 

11 higher education’ includes the president, chief execu12 tive officer, and chief financial officer of an institu13 tion of higher education or their equivalents. 

14 ‘‘(b) SANCTIONS FOR SUBSTANTIAL MISREPRESEN15 TATIONS OR SERIOUS VIOLATIONS.— 

16 ‘‘(1) CIVIL PENALTIES.— 

17 ‘‘(A) IN GENERAL.—The Secretary may 

18 impose a civil penalty upon an eligible institu19 tion upon making a determination, after reason20 able notice and opportunity for a hearing, that 

21 an eligible institution has engaged in a substan22 tial misrepresentation or other serious violation. 

23 ‘‘(B) AMOUNT OF CIVIL PENALTIES.—A 

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1 paragraph (A) shall be not less than $100,000 

2 or— 

3 ‘‘(i) in the case of a first violation, an 

4 amount equal to the product of $1,000,000 

5 multiplied by the institution’s student de6 fault risk, whichever is larger; 

7 ‘‘(ii) in the case of a second violation, 

8 an amount equal to the product of 

9 $2,000,000 multiplied by the institution’s 

10 student default risk, whichever is larger; 

11 and 

12 ‘‘(iii) in the case of a third or subse13 quent violation, an amount equal to the 

14 product of $3,000,000 multiplied by the in15 stitution’s student default risk, whichever 

16 is larger. 

17 ‘‘(C) TREATMENT OF MULTIPLE INSTITU18 TIONS.—For the purpose of determining the 

19 number of violations for subparagraph (B), any 

20 violation by a particular institution will accrue 

21 against all identification codes used by the Of22 fice of Postsecondary Education to designate 

23 campuses and institutions affiliated with the in24 stitution, and within the period of participation 

25 for the institution, as defined in section 

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1 668.13(b) of title 34, Code of Federal Regula2 tions, or any successor regulation. 

3 ‘‘(c) SANCTIONS FOR OTHER VIOLATIONS OF THIS

4 TITLE.—Upon determination, after reasonable notice and 

5 opportunity for a hearing, that an eligible institution has 

6 engaged in a violation of any other provision of this title, 

7 including the failure to carry out any provision of this 

8 title, that is not a significant misrepresentation or other 

9 serious violation, the Secretary may impose a civil penalty 

10 upon such institution of not more than $100,000 (subject 

11 to such adjustments for inflation as may be prescribed in 

12 regulation) for each such violation. 

13 ‘‘(d) CIVIL PENALTIES AND SANCTIONS FOR OFFI14 CERS OF INSTITUTIONS.—Upon determination, after rea15 sonable notice and an opportunity for a hearing on the 

16 record, that an officer of an institution of higher education 

17 that participates in a program under this title has know18 ingly and willfully, or with gross negligence, violated a pro19 vision of this title, the Secretary may sanction the officer. 

20 Such sanctions may include the following: 

21 ‘‘(1) Prohibiting the institution of higher edu22 cation that has employed the officer of an institution 

23 of higher education and that participates in a pro24 gram under this title, or any other institution of 

25 higher education that participates in a program 

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1 under this title, from employing the officer, except 

2 that any such prohibition under this subsection shall 

3 not be for a period of more than 5 years from the 

4 date of the determination of the violation. 

5 ‘‘(2) Assessing a civil penalty against an officer 

6 of an institution of higher education who has know7 ingly and willfully, or with gross negligence, violated 

8 a provision of this title, except that any such civil 

9 penalty under this subsection shall not be greater 

10 than the amount of the officer’s compensation for 

11 each year for which the violations are determined to 

12 have occurred. For purposes of this subparagraph, 

13 an officer’s compensation shall include proceeds of 

14 any sales of stock and any incentive-based com15 pensation (including stock options awarded as com16 pensation) based on information required to be re17 ported to the Secretary or any other Federal agency 

18 during the period in which the violations are deter19 mined to have occurred. 

20 ‘‘(e) LIMITATION, SUSPENSION, OR TERMINATION OF

21 ELIGIBILITY STATUS.— 

22 ‘‘(1) IN GENERAL.—Upon determination, after 

23 reasonable notice and opportunity for a hearing, that 

24 an eligible institution has engaged in a violation of 

25 any provision of this title (including the failure to 

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1 carry out any provision of this title or any regulation 

2 prescribed under such provision) or a violation of 

3 any applicable special arrangement, agreement, or 

4 limitation, the Secretary may limit, suspend, or ter5 minate the participation in any program under this 

6 title of an eligible institution, subject to the require7 ments of paragraph (2). 

8 ‘‘(2) SUSPENSION PROCEDURES.—No period of 

9 suspension under this section shall exceed 60 days 

10 unless the institution and the Secretary agree to an 

11 extension or unless limitation or termination pro12 ceedings are initiated by the Secretary within that 

13 period of time. 

14 ‘‘(f) EMERGENCY ACTION.— 

15 ‘‘(1) IN GENERAL.—The Secretary may take an 

16 emergency action against an institution, under which 

17 the Secretary shall, effective on the date on which a 

18 notice and statement of the basis of the action is 

19 mailed to the institution (by registered mail, return 

20 receipt requested), withhold funds from the institu21 tion or its students and withdraw the institution’s 

22 authority to obligate funds under any program 

23 under this title, if the Secretary— 

24 ‘‘(A) receives information, determined by 

25 the Secretary to be reliable, that the institution 

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1 is violating any provision of this title, any regu2 lation prescribed under this title, or any appli3 cable special arrangement, agreement, or limita4 tion; 

5 ‘‘(B) determines that immediate action is 

6 necessary to prevent misuse of Federal funds; 

7 and 

8 ‘‘(C) determines that the likelihood of loss 

9 outweighs the importance of the procedures pre10 scribed in subsection (e) for limitation, suspen11 sion, or termination. 

12 ‘‘(2) TIME LIMITATION.—An emergency action 

13 described in paragraph (1) shall not exceed 30 days 

14 unless limitation, suspension, or termination pro15 ceedings are initiated by the Secretary against the 

16 institution within that period of time. 

17 ‘‘(3) OPPORTUNITY TO SHOW CAUSE.—The Sec18 retary shall provide an institution that is the subject 

19 of an emergency action under this subsection an op20 portunity to show cause, if the institution so re21 quests, that the emergency action is unwarranted 

22 and should be lifted. 

23 ‘‘(g) LIFTING OF SANCTIONS.—Notwithstanding any 

24 other provision of this title, an institution of higher edu25 cation that has been sanctioned by the Secretary under 

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1 this section or any other provision of this title may not 

2 have such sanctions lifted until the Secretary has con3 ducted a subsequent program review under section 498A 

4 and has found the institution to be in compliance with this 

5 title. 

6 ‘‘(h) SINGLE COURSE OF CONDUCT; COMPROMISE

7 AUTHORITY AND COLLECTION OF PENALTY.— 

8 ‘‘(1) SAME COURSE OF CONDUCT.—For pur9 poses of this section, acts and omissions relating to 

10 a single course of conduct shall be treated as a sin11 gle violation. 

12 ‘‘(2) COMPROMISE AUTHORITY.—Any civil pen13 alty under this section may be compromised by the 

14 Secretary. In determining the amount of such pen15 alty, or the amount agreed upon in compromise, the 

16 Secretary shall consider— 

17 ‘‘(A) the appropriateness of the penalty to 

18 the size of the institution of higher education 

19 subject to the determination; and 

20 ‘‘(B) the gravity of the violation, failure, or 

21 misrepresentation. 

22 ‘‘(i) COLLECTION OF PENALTY.—The amount of any 

23 penalty under this section may be deducted from any sums 

24 owing by the United States to the institution charged. 

25 ‘‘(j) DISPOSITION OF AMOUNTS RECOVERED.— 

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1 ‘‘(1) IN GENERAL.—Amounts collected under 

2 this section shall be transferred to the Secretary, 

3 who shall determine the distribution of collected 

4 amounts, in accordance with paragraphs (2) and (3). 

5 ‘‘(2) USE FOR PROGRAM INTEGRITY EFFORTS

6 AND PROGRAM REVIEWS.— 

7 ‘‘(A) IN GENERAL.—For each fiscal year, 

8 an amount equal to not more than 50 percent 

9 of the amounts recovered or collected under this 

10 section— 

11 ‘‘(i) shall be available to the Secretary 

12 to carry out program reviews under section 

13 498A and other efforts by the Secretary 

14 related to program integrity under part H; 

15 and 

16 ‘‘(ii) may be credited, if applicable, for 

17 that purpose by the Secretary to any ap18 propriations and funds that are available 

19 to the Secretary for obligation at the time 

20 of collection. 

21 ‘‘(B) SUPPLEMENT NOT SUPPLANT.— 

22 Amounts made available under subparagraph 

23 (A) shall be used to supplement and not sup24 plant any other amounts available to the Secmstockstill on DSK4VPTVN1PROD with BILLS

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1 retary for the purpose described in such sub2 paragraph. 

3 ‘‘(C) AVAILABILITY FOR FUNDS.—Any 

4 amounts collected under this section that are 

5 made available under paragraph (2) shall re6 main available until expended. 

7 ‘‘(3) USE FOR STUDENT RELIEF FUND.—For 

8 each fiscal year, an amount equal to not less than 

9 50 percent of the amounts recovered or collected 

10 under this section shall be deposited into the Stu11 dent Relief Fund established under subsection (k). 

12 ‘‘(4) REPORT.—The Secretary shall regularly 

13 publish, on the website of the Department, a de14 tailed description that includes— 

15 ‘‘(A) the amount of funds that were dis16 tributed for the purposes described in para17 graph (2) and the amount used for the Student 

18 Relief Fund under paragraph (3); and 

19 ‘‘(B) how funds were distributed among 

20 the purposes described in paragraph (2)(A)(i). 

21 ‘‘(k) STUDENT RELIEF FUND.— 

22 ‘‘(1) ESTABLISHMENT.—The Secretary shall es23 tablish a Student Relief Fund (referred to in this 

24 subsection as the ‘Fund’) that shall be used, subject 

25 to the availability of funds, to provide financial relief 

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1 to any student enrolled in an institution of higher 

2 education that— 

3 ‘‘(A) has failed to comply with an eligi4 bility requirement under section 101 or 102 or 

5 an obligation incurred under the terms of the 

6 program participation agreement under section 

7 487; or 

8 ‘‘(B) has been sanctioned under subsection 

9 (b) or (c). 

10 ‘‘(2) DETERMINATION OF RELIEF.—The Sec11 retary, in consultation with Director of the Bureau 

12 of Consumer Financial Protection— 

13 ‘‘(A) shall determine the manner of relief 

14 to be provided under paragraph (1), which may 

15 include tuition reimbursement or full or partial 

16 loan forgiveness; and 

17 ‘‘(B) may issue regulations regarding how 

18 the amounts in the Fund will be distributed 

19 among students eligible for the funds. 

20 ‘‘(3) TREATMENT AND AVAILABILITY OF

21 FUNDS.— 

22 ‘‘(A) FUNDS THAT ARE NOT GOVERNMENT

23 FUNDS.—Funds obtained by or transferred to 

24 the Fund shall not be construed to be Govern25 ment funds or appropriated monies. 

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1 ‘‘(B) AMOUNTS NOT SUBJECT TO APPOR2 TIONMENT.—Notwithstanding any other provi3 sion of law, amounts in the Fund shall not be 

4 subject to apportionment for purposes of chap5 ter 15 of title 31, United States Code, or under 

6 any other authority. 

7 ‘‘(C) NO FISCAL YEAR LIMITATION.—Sums 

8 deposited in the Fund shall remain in the Fund 

9 and be available for expenditure under this 

10 chapter without fiscal year limitation. 

11 ‘‘(4) INVESTMENTS.— 

12 ‘‘(A) AMOUNTS IN FUND MAY BE IN13 VESTED.—The Secretary of Education may re14 quest the Secretary of the Treasury to invest 

15 the portion of the Fund that is not, in the dis16 cretion of the Secretary of Education, required 

17 to meet the current needs of the Fund. 

18 ‘‘(B) ELIGIBLE INVESTMENTS.—Invest19 ments shall be made by the Secretary of the 

20 Treasury in obligations of the United States or 

21 obligations that are guaranteed as to principal 

22 and interest by the United States, with matu23 rities suitable to the needs of the Fund as de24 termined by the Secretary on the record. 

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1 ‘‘(C) INTEREST AND PROCEEDS CRED2 ITED.—The interest on, and the proceeds from 

3 the sale or redemption of, any obligations held 

4 in the Fund shall be credited to the Fund. 

5 ‘‘(5) REGULATIONS.—The Secretary shall pre6 scribe regulations to implement the requirements of 

7 this section within 1 year after the date of enact8 ment of the Higher Education Affordability Act. 

9 ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.—In 

10 addition to funds derived from financial penalties as11 sessed pursuant to subsection (j), there are author12 ized to be appropriated such sums as may be nec13 essary to carry out this subsection for fiscal year 

14 2015 and each of the five succeeding fiscal years. 

15 ‘‘(l) STATE ENFORCEMENT.— 

16 ‘‘(1) IN GENERAL.—Any violation of subsection 

17 (b), including the regulations promulgated under 

18 such subsection, shall be a cause of action enforce19 able by the State, through the attorney general (or 

20 the equivalent thereof) of the State, in any district 

21 court of the United States in that State or in a 

22 State court that is located in that State and that 

23 has jurisdiction over the defendant. The State may 

24 seek any relief provided under paragraph (4)(B) for 

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1 such violation, or any remedies otherwise provided 

2 under law. 

3 ‘‘(2) NOTICE REQUIRED.— 

4 ‘‘(A) IN GENERAL.—Before initiating any 

5 action in a court or other administrative or reg6 ulatory proceeding against any institution of 

7 higher education as authorized by paragraph 

8 (1) to enforce any provision of this subsection, 

9 including any regulation promulgated by the 

10 Secretary under this subsection, a State attor11 ney general shall timely provide a copy of the 

12 complete complaint to be filed and written no13 tice describing such action or proceeding to the 

14 Secretary, except as provided in subparagraph 

15 (B). 

16 ‘‘(B) EMERGENCY ACTION.—If prior notice 

17 is not practicable, the State attorney general 

18 shall provide a copy of the complete complaint 

19 and the notice to the Secretary immediately 

20 upon instituting the action or proceeding. 

21 ‘‘(C) CONTENTS OF NOTICE.—The notifi22 cation required under this subparagraph shall, 

23 at a minimum, describe— 

24 ‘‘(i) the identity of the parties; 

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1 ‘‘(ii) the alleged facts underlying the 

2 proceeding; and 

3 ‘‘(iii) whether there may be a need to 

4 coordinate the prosecution of the pro5 ceeding so as not to interfere with any ac6 tion, including any rulemaking, undertaken 

7 by the Secretary or another Federal agen8 cy. 

9 ‘‘(3) REGULATIONS.—The Secretary shall pre10 scribe regulations to implement the requirements of 

11 this subsection and periodically provide guidance in 

12 order to further coordinate actions with the State at13 torneys general. 

14 ‘‘(4) PRESERVATION OF STATE AUTHORITY.— 

15 ‘‘(A) STATE CLAIMS.—Nothing in this sub16 section shall be construed as altering, limiting, 

17 or affecting the authority of a State attorney 

18 general or any other regulatory or enforcement 

19 agency or authority to bring an action or other 

20 regulatory proceeding arising solely under the 

21 law in effect in that State. 

22 ‘‘(B) RELIEF.— 

23 ‘‘(i) IN GENERAL.—Relief under this 

24 subsection may include, without limita25 tion— 

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1 ‘‘(I) rescission or reformation of 

2 contracts; 

3 ‘‘(II) refund of moneys or return 

4 of real property; 

5 ‘‘(III) restitution; 

6 ‘‘(IV) disgorgement or compensa7 tion for unjust enrichment; 

8 ‘‘(V) payment of damages or 

9 other monetary relief pursuant to the 

10 requirements of paragraph (2); 

11 ‘‘(VI) public notification regard12 ing the violation, including the costs 

13 of notification; and 

14 ‘‘(VII) limits on the activities or 

15 functions of the person. 

16 ‘‘(ii) EXCLUSION.—Relief under this 

17 subsection shall not include the ability to 

18 suspend or terminate the eligibility status 

19 of an institution of higher education for 

20 programs under this title.’’. 

21 SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL 

22 ASSISTANCE. 

23 Section 491(k) (20 U.S.C. 1098(i)) is amended by 

24 striking ‘‘2015’’ and inserting ‘‘2020’’. 

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1 SEC. 492. INCOME-BASED REPAYMENT. 

2 (a) IN GENERAL.—Section 493C of the Higher Edu3 cation Act of 1965 (20 U.S.C. 1098e) is amended to read 

4 as follows: 

5 ‘‘SEC. 493C. INCOME-BASED REPAYMENT. 

6 ‘‘(a) DEFINITIONS.—In this section: 

7 ‘‘(1) ELIGIBLE LOAN.—The term ‘eligible loan’ 

8 means any outstanding loan of a borrower that is 

9 made, insured, or guaranteed under part B or part 

10 D, except that the term does not include— 

11 ‘‘(A) any such loan that is in default; 

12 ‘‘(B) any PLUS loan made, insured, or 

13 guaranteed under section 428, or any Federal 

14 Direct PLUS Loan, made to a parent borrower; 

15 or 

16 ‘‘(C) any consolidation loan made, insured, 

17 or guaranteed under section 428C, or any Fed18 eral Direct Consolidation Loan, that repaid a 

19 loan described in subparagraph (B). 

20 ‘‘(2) PARTIAL FINANCIAL HARDSHIP.—The 

21 term ‘partial financial hardship’, when used with re22 spect to a borrower, means that— 

23 ‘‘(A) for such borrower— 

24 ‘‘(i) the annual amount due on the 

25 total amount of eligible loans made to a 

26 borrower as calculated under the standard 

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1 repayment plan under section 

2 428(b)(9)(A)(i) or 455(d)(1)(A), based on 

3 a 10-year repayment period; exceeds 

4 ‘‘(ii) 10 percent of the result obtained 

5 by calculating, on an annual basis, the 

6 amount by which— 

7 ‘‘(I) the borrower’s, and the bor8 rower’s spouse’s (if applicable), ad9 justed gross income; exceeds 

10 ‘‘(II) 150 percent of the poverty 

11 line; or 

12 ‘‘(B) the borrower is considered 150 days 

13 or more days delinquent on one or more eligible 

14 loans. 

15 ‘‘(b) INCOME-BASED REPAYMENT PROGRAM AU16 THORIZED.—Notwithstanding any other provision of this 

17 Act, the Secretary shall carry out a program under 

18 which— 

19 ‘‘(1) a borrower of any eligible loan may elect 

20 to participate in the income-based repayment plan if 

21 the borrower has a partial financial hardship as of 

22 the time the borrower makes the election— 

23 ‘‘(A) whether or not the borrower’s loan 

24 has been submitted to a guaranty agency for 

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1 default aversion or had been in default pre2 viously; and 

3 ‘‘(B) whether or not the borrower is, at the 

4 time of the election, enrolled in another repay5 ment plan, including the income contingent re6 payment plan, income-sensitive repayment plan, 

7 or another repayment plan based on income eli8 gibility (except that in the case of a borrower 

9 who is enrolled in the income contingent repay10 ment plan and has a Federal Direct Consolida11 tion Loan that repaid a Federal Direct PLUS 

12 Loan, that Federal Direct Consolidation Loan 

13 shall not be an eligible loan for purposes of this 

14 section); 

15 ‘‘(2) after selection of the income-based repay16 ment plan, and for the remaining period of the bor17 rower’s loans unless the borrower elects a different 

18 repayment method, the borrower’s aggregate month19 ly payment for all such loans shall not exceed the re20 sult described in subsection (a)(2)(A)(ii), as cal21 culated on an annual basis, divided by 12; 

22 ‘‘(3) the holder of such a loan shall apply the 

23 borrower’s monthly payment under this subsection 

24 first toward interest due on the loan, next toward 

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1 any fees due on the loan, and then toward the prin2 cipal of the loan; 

3 ‘‘(4) any interest due and not paid under para4 graph (3) shall accrue but not be capitalized, except 

5 that, in the case of loans under section 428, or Fed6 eral Direct Stafford Loans for which interest was 

7 subsidized, any interest due and not paid under 

8 paragraph (3) shall be paid by the Secretary for a 

9 period of not more than 3 years after the date of the 

10 borrower’s election under paragraph (1) (not includ11 ing any period during which the borrower is in 

12 deferment due to an economic hardship described in 

13 section 435(o)); and 

14 ‘‘(5) any principal due and not paid under 

15 paragraph (3) shall be deferred; 

16 ‘‘(6) a borrower who elects to participate in an 

17 income-based repayment plan under paragraph (1) 

18 and whose eligibility for an income-based repayment 

19 plan is verified may participate in the income-based 

20 repayment plan during the period of the borrower’s 

21 loans, even if the borrower no longer has a partial 

22 financial hardship; 

23 ‘‘(7) the amount of time the borrower makes 

24 monthly payments under paragraph (2) may exceed 

25 10 years; 

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1 ‘‘(8) the Secretary shall repay or cancel any 

2 outstanding balance of principal and interest due on 

3 all eligible loans to a borrower who— 

4 ‘‘(A) at any time, elected to participate in 

5 income-based repayment under paragraph (1); 

6 and 

7 ‘‘(B) for a period of time prescribed by the 

8 Secretary, not to exceed 20 years, meets 1 or 

9 more of the following requirements— 

10 ‘‘(i) has made reduced monthly pay11 ments under paragraph (2); 

12 ‘‘(ii) has made monthly payments of 

13 not less than the monthly amount required 

14 under paragraph (1) of subsection (b), as 

15 such subsection was in effect on the day 

16 before the date of enactment of the Higher 

17 Education Affordability Act; 

18 ‘‘(iii) has made monthly payments of 

19 not less than the monthly amount cal20 culated under section 428(b)(9)(A)(i) or 

21 455(d)(1)(A), based on a 10-year repay22 ment period, when the borrower first made 

23 the election described in this subsection; 

24 ‘‘(iv) has made payments of not less 

25 than the payments required under a standmstockstill on DSK4VPTVN1PROD with BILLS

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1 ard repayment plan under section 

2 428(b)(9)(A)(i) or 455(d)(1)(A) with a re3 payment period of 10 years; 

4 ‘‘(v) has made payments under an in5 come contingent repayment plan under sec6 tion 455(d)(1)(D), as in effect on the day 

7 before the date that is 1 year after the 

8 date of enactment of the Higher Education 

9 Affordability Act; or 

10 ‘‘(vi) has been in deferment due to an 

11 economic hardship described in section 

12 435(o); 

13 ‘‘(9) a borrower who is repaying an eligible loan 

14 pursuant to income-based repayment may elect, at 

15 any time, to terminate repayment pursuant to in16 come-based repayment and repay such loan under 

17 another repayment plan; and 

18 ‘‘(10) the special allowance payment to a lender 

19 calculated under section 438(b)(2)(I), when cal20 culated for a loan in repayment under this section, 

21 shall be calculated on the principal balance of the 

22 loan and on any accrued interest unpaid by the bor23 rower in accordance with this section. 

24 ‘‘(c) MONTHLY LOAN PAYMENT DETERMINA25 TIONS.— 

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1 ‘‘(1) VERIFICATION PROCESS.— 

2 ‘‘(A) IN GENERAL.—The Secretary shall 

3 establish procedures for annually determining 

4 the borrower’s monthly payment amount for in5 come-based repayment, including verification of 

6 a borrower’s annual income and the annual 

7 amount due on the total amount of eligible 

8 loans. 

9 ‘‘(B) RULE FOR BORROWERS WHO DO NOT

10 PROVIDE THE ADDITIONAL INFORMATION.—In 

11 the case of a borrower who has selected the in12 come-based repayment plan and who does not 

13 submit the borrower’s annual income docu14 mentation by such date as required under sub15 paragraph (A)— 

16 ‘‘(i) until the borrower submits the re17 quired documentation (but in no case for a 

18 period greater than 1 year), the borrower’s 

19 monthly payment amount for an eligible 

20 loan shall be the greater of— 

21 ‘‘(I) the monthly payment re22 quired under a standard repayment 

23 plan under section 428(b)(9)(A)(i) or 

24 455(d)(1)(A) with a repayment period 

25 of 10 years for the loan; and 

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1 ‘‘(II) the amount described in 

2 subsection (a)(2)(A)(ii), as calculated 

3 based on the most recent income doc4 umentation provided to the Secretary 

5 by the borrower; and 

6 ‘‘(ii) no monthly payments made be7 fore the borrower has submitted the re8 quired information shall be included for 

9 purposes of loan repayment or cancellation 

10 under subsection (b)(8)(B) or the public 

11 service loan forgiveness program under 

12 section 455(m). 

13 ‘‘(C) ADDITIONAL PROCEDURES TO CON14 SIDER.—In addition to the procedures estab15 lished in this section, the Secretary shall con16 sider, but is not limited to, the procedures es17 tablished in accordance with section 455(e)(1) 

18 or in connection with income-sensitive repay19 ment schedules under section 428(b)(9)(A)(iii) 

20 or 428C(b)(1)(E), as in effect on the day before 

21 the date that is 1 year after the date of enact22 ment of the Higher Education Affordability 

23 Act. 

24 ‘‘(2) SPECIAL RULE FOR MARRIED BORROWERS

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1 rower who files a separate Federal income tax re2 turn, the Secretary shall calculate the amount of the 

3 borrower’s income-based repayment under this sec4 tion solely on the basis of the borrower’s student 

5 loan debt and adjusted gross income. 

6 ‘‘(d) AUTOMATIC ENROLLMENT FOR DELINQUENT

7 BORROWERS.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall estab9 lish procedures for automatically enrolling delin10 quent borrowers with a partial financial hardship de11 scribed in subsection (a)(2)(B) into the income12 based repayment plan. Such procedures shall include 

13 the following requirements: 

14 ‘‘(A) Each entity with a contract to service 

15 loans under section 456, and each entity that is 

16 a lender of loans made, insured, or guaranteed 

17 under part B or any entity that provides stu18 dent loan servicing for such lender, shall— 

19 ‘‘(i) identify each delinquent borrower 

20 of a loan serviced or held by the entity on 

21 the date that such borrower qualifies for a 

22 partial financial hardship described in sub23 section (a)(2)(B); and 

24 ‘‘(ii) retrieve for such borrower, using 

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1 tablished under paragraph (4), the bor2 rower’s new monthly payment amount 

3 under this section. 

4 ‘‘(B) In any case where an entity described 

5 in subparagraph (A) is unable to obtain infor6 mation regarding the borrower’s new monthly 

7 payment amount under this section, the entity 

8 shall notify the Secretary and the Secretary 

9 shall provide the entity with a determination of 

10 the new monthly payment amount for a bor11 rower not later than 7 days after the entity’s 

12 request. 

13 ‘‘(C) The entity described in subparagraph 

14 (A) shall automatically enroll a borrower identi15 fied in such subparagraph into the income16 based repayment plan as follows: 

17 ‘‘(i) In the case of a borrower who 

18 filed a return under section 6012(a)(1) of 

19 the Internal Revenue Code of 1986 for 1 

20 or both of the immediately preceding tax 

21 years— 

22 ‘‘(I) if such borrower makes a 

23 payment equal to or greater than the 

24 new monthly payment amount deter25 mined under subparagraph (A)(ii) for 

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1 the income-based repayment plan, the 

2 entity will automatically enroll the 

3 borrower in the income-based repay4 ment program, unless the borrower 

5 requests otherwise; 

6 ‘‘(II) if such borrower’s new 

7 monthly payment amount provided 

8 under subparagraph (A)(ii) for the in9 come-based repayment plan is deter10 mined to be $0, the entity will auto11 matically enroll the borrower in the 

12 income-based repayment program, if 

13 the borrower provides consent for 

14 such enrollment, as determined 

15 through either an online agreement or 

16 a signed consent form; and 

17 ‘‘(III) if such borrower does not 

18 make a payment equal to or greater 

19 than the new monthly payment 

20 amount determined under subpara21 graph (A)(ii) for the income-based re22 payment plan, the entity will not auto23 matically enroll the borrower in the 

24 income-based repayment program. 

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1 ‘‘(ii) In the case of a borrower identi2 fied under subparagraph (A)(i) who was 

3 not required to file a tax return under sec4 tion 6012(a)(1) of the Internal Revenue 

5 Code of 1986 for the 2 consecutive pre6 ceding tax years— 

7 ‘‘(I) the entity will deem the bor8 rower’s monthly payment amount for 

9 income-based repayment to be $0 

10 until determined otherwise through 

11 additional information; and 

12 ‘‘(II) the entity will automatically 

13 enroll the borrower in the income14 based repayment program if the bor15 rower provides consent for such en16 rollment, as determined through ei17 ther an online agreement or a signed 

18 consent form. 

19 ‘‘(iii) In the case of a borrower identi20 fied under paragraph (1)(A) who failed to 

21 file a return under section 6012(a)(1) of 

22 the Internal Revenue Code of 1986, for the 

23 preceding tax year, the entity will carry 

24 out the requirements described in para25 graph (3)(C), including automatically enmstockstill on DSK4VPTVN1PROD with BILLS

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1 rolling the borrower in the income-based 

2 repayment program if the borrower pro3 vides consent and provides additional infor4 mation, as described in such paragraph. 

5 ‘‘(D) The entity described in subparagraph 

6 (A) shall provide each borrower identified with 

7 a partial financial hardship under subparagraph 

8 (A)(i), as part of the borrower’s next periodic 

9 statement, a personalized statement to the bor10 rower that— 

11 ‘‘(i) informs the borrower— 

12 ‘‘(I) that the borrower will be 

13 automatically enrolled into the in14 come-based repayment plan under this 

15 section, in accordance with the proce16 dure described in subparagraph (C) 

17 that is applicable to the borrower’s 

18 case; 

19 ‘‘(II) of the key terms and condi20 tions of such repayment plan; and 

21 ‘‘(III) what the borrower’s new 

22 monthly payment amount under the 

23 income-based repayment plan will be 

24 for the next year; 

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1 ‘‘(ii) notifies the borrower of the auto2 matic enrollment procedures described in 

3 subparagraph (C); 

4 ‘‘(iii) provides a clear list of dangers 

5 associated with continued delinquency and 

6 default on eligible loans; 

7 ‘‘(iv) informs the borrower that the 

8 borrower is eligible for a different monthly 

9 payment amount under the standard 10- 

10 year plan, and the estimated monthly pay11 ment amount under the standard 10-year 

12 plan; 

13 ‘‘(v) informs the borrower that paying 

14 the minimum monthly payment amount 

15 under the income-based repayment plan 

16 under this section may lead to negative 

17 amortization such that if a borrower’s 

18 monthly payment does not fully cover the 

19 amount of interest owed, then the principal 

20 amount owed may increase over time and 

21 cause the borrower’s loan balance to in22 crease; and 

23 ‘‘(vi) includes any other information 

24 determined to be relevant by the Secretary, 

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1 in consultation with the Director of the 

2 Bureau of Consumer Financial Protection. 

3 ‘‘(2) STANDARD NOTIFICATION FORMAT; CON4 SUMER TESTING.—The Secretary, in consultation 

5 with the Director of the Bureau of Consumer Finan6 cial Protection, shall— 

7 ‘‘(A) develop a standard format for the 

8 personalized statement described in paragraph 

9 (1)(D); and 

10 ‘‘(B) submit for consumer testing under 

11 section 483, such standard format and any con12 sent form or online tool required for consent of 

13 borrowers with $0 payment to participate in in14 come-based repayment under paragraph 

15 (1)(C)(ii)(II) or (3)(B). 

16 ‘‘(3) FAILURE TO FILE.— 

17 ‘‘(A) MONTHLY PAYMENT AMOUNT TREAT18 ED AS $0.—In the case of a borrower identified 

19 under paragraph (1)(A) who is required to file 

20 a return under section 6012(a)(1) of the Inter21 nal Revenue Code of 1986 and fails to file such 

22 return, the Secretary of the Treasury shall 

23 transmit to the Secretary of Education any 

24 such tax information of the individual as may 

25 be necessary to determine the appropriate 

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1 monthly payment amount. If such information 

2 is unavailable or insufficient, then the monthly 

3 payment amount shall be treated as $0 until 

4 determined otherwise through additional infor5 mation. 

6 ‘‘(B) BORROWER CONTACT REQUIRE7 MENT.—A borrower whose monthly payment 

8 amount is treated as $0 due to unavailable or 

9 insufficient information, as described in sub10 paragraph (A), shall be automatically enrolled 

11 in the income-based repayment plan under this 

12 section if the borrower— 

13 ‘‘(i) provides consent for such enroll14 ment, as determined through either an on15 line agreement or a signed consent form; 

16 and 

17 ‘‘(ii) provides the information needed 

18 to determine the appropriate monthly pay19 ment amount under the income-based re20 payment plan. 

21 ‘‘(C) NOTIFICATION.—The entity described 

22 in paragraph (1)(A) shall communicate to a 

23 borrower described in this paragraph of the pol24 icy described in subparagraph (A) and the re25 quirements that the borrower must fulfill, as 

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1 described in subparagraph (B), in order to en2 roll in the income-based repayment plan under 

3 this section if such borrower’s monthly payment 

4 amount has been treated as $0 due to unavail5 able or insufficient information, as determined 

6 by the Secretary. Such policy and requirements 

7 shall be communicated to the borrower in plain 

8 and simple language in the next periodic state9 ment described under paragraph (1)(D). 

10 ‘‘(4) CREATION OF ONLINE INCOME

11 VERIFICATION SYSTEM.— 

12 ‘‘(A) IN GENERAL.—By not later than the 

13 date that is 1 year after the date of enactment 

14 of the Higher Education Affordability Act, the 

15 Secretary, in consultation with the Secretary of 

16 the Treasury, shall develop and establish a 

17 streamlined online income verification system 

18 website that allows each entity with a contract 

19 to service loans under section 456, and each en20 tity that is an eligible lender of loans made, in21 sured, or guaranteed under part B or another 

22 entity that provides student loan servicing for 

23 such lender or loan holder, to access and re24 trieve the monthly payment amount for the in25 come-based repayment program for a borrower 

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1 identified under paragraph (1)(A). The website 

2 shall provide no additional information relating 

3 to a borrower’s financial circumstances beyond 

4 that needed to determine a monthly payment 

5 amount. 

6 ‘‘(B) SECURITY.—The Secretary shall en7 sure that the online income verification system 

8 website established under subparagraph (A) is 

9 secure and that information regarding a bor10 rower is accessible only to the lender of a loan 

11 of such borrower or the entity that is servicing 

12 a loan of such borrower. The Secretary shall en13 sure that no entity shall access the online in14 come verification system website for the pur15 poses of collections with respect to loans. 

16 ‘‘(C) PROHIBITION OF INAPPROPRIATE

17 USE.—Any use of the online income verification 

18 system that is not for the purpose described in 

19 subparagraph (A) is prohibited and may be the 

20 basis for a claim of a violation of a contract en21 tered into under section 456, or for an action 

22 under subsection (g) or (h) of section 432, as 

23 the case may be. 

24 ‘‘(5) APPEALS PROCESS.—The Secretary shall 

25 establish a clear and accessible process for appealing 

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1 the monthly payment amount determined under the 

2 online income verification system website for a bor3 rower identified in paragraph (1)(A) in any case 

4 where a borrower believes that the monthly payment 

5 amount is based on tax information that is incorrect. 

6 If a borrower wins such an appeal, then the Sec7 retary shall— 

8 ‘‘(A) retroactively credit the overpaid 

9 amount towards future payments; or 

10 ‘‘(B) apply the overpaid amount towards 

11 the principal balance of the borrower’s loans, if 

12 requested to do so by the borrower. 

13 ‘‘(e) CHANGES TO FAFSA.—By not later than 1 year 

14 after the date of enactment of the Higher Education Af15 fordability Act, the Secretary shall make changes as need16 ed to the common master promissory note developed under 

17 section 432(m)(1)(A) and the Free Application for Fed18 eral Student Aid described in section 483 to implement 

19 the requirements of this section.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 subsection (a) shall take effect on the date that is 1 year 

22 after the date of enactment of this Act. 

23 SEC. 493. EXTENDING THE PROTECTIONS FOR STUDENT 

24 LOANS FOR ACTIVE DUTY BORROWERS. 

25 Section 493D (20 U.S.C. 1098f) is amended— 

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1 (1) in the section heading, by inserting ‘‘AND

2 PROTECTIONS FOR ACTIVE DUTY BORROWERS’’ 

3 before the period at the end; 

4 (2) by redesignating subsection (b) as sub5 section (c); and 

6 (3) by inserting after subsection (a) the fol7 lowing: 

8 ‘‘(b) USE OF INFORMATION.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall utilize 

10 information the Secretary receives regarding the ac11 tive duty status of borrowers from the Secretary of 

12 Defense for any purpose under this title to ensure 

13 that the interest rate charged on any loan made 

14 under part D of title IV for borrowers who are sub15 ject to section 207(a)(1) of the Servicemembers Civil 

16 Relief Act (50 U.S.C. App. 527(a)(1)) does not ex17 ceed the maximum interest rate set forth in such 

18 section. 

19 ‘‘(2) SCRA INTEREST RATE LIMITATION NO20 TICE REQUIREMENTS.—The submittal by the Sec21 retary of Defense to the Secretary of Education of 

22 information that informs the Secretary of Education 

23 that a member of the Armed Forces with a student 

24 loan under part D of title IV has been or is being 

25 called to military service (as defined in section 101 

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1 of the Servicemembers Civil Relief Act (50 U.S.C. 

2 App. 511)), including a member of a reserve unit 

3 who is ordered to report for military service as pro4 vided for under section 106 of such Act (50 U.S.C. 

5 App. 516), shall be considered, for purposes of sub6 jecting such student loan to the provisions of section 

7 207 of the Servicemembers Civil Relief Act (50 

8 U.S.C. App. 527), provision by the borrower to the 

9 creditor of written notice and a copy of military or10 ders as described in subsection (b)(1) of such sec11 tion. 

12 ‘‘(3) PROCEDURES.—Not later than 180 days 

13 after the date of enactment of the Higher Education 

14 Affordability Act, the Secretary, in consultation with 

15 the Department of Defense, shall establish a proce16 dure to implement this subsection.’’. 

17 SEC. 493A. DISBURSEMENT OF CREDIT BALANCE. 

18 Part G of title IV (20 U.S.C. 1088 et seq.) is amend19 ed by adding at the end the following: 

20 ‘‘SEC. 493E. DISBURSEMENT OF CREDIT BALANCE. 

21 ‘‘(a) CREDIT BALANCE.—In this section, the term 

22 ‘credit balance’ means the amount of program funds under 

23 this title credited to a student’s ledger account at the insti24 tution of higher education that exceed the amount asmstockstill on DSK4VPTVN1PROD with BILLS

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1 sessed the student by the institution for allowable institu2 tional charges, as defined by the Secretary. 

3 ‘‘(b) ESTABLISHMENT OF SYSTEM FOR DISBURSE4 MENT.—Not later than 3 years after the date of enact5 ment of the Higher Education Affordability Act, each in6 stitution of higher education that enrolls a student who 

7 receives a grant or loan under this title shall establish a 

8 system for the disbursement of credit balances in accord9 ance with subsection (c). 

10 ‘‘(c) ELECTRONIC PAYMENT SYSTEM.— 

11 ‘‘(1) IN GENERAL.—Each institution of higher 

12 education described in subsection (b) shall establish 

13 a system for disbursement of credit balances 

14 through electronic payments to a deposit account or 

15 a general use prepaid card with the protections af16 forded under the Electronic Fund Transfer Act (15 

17 U.S.C. 1693 et seq.). 

18 ‘‘(2) NO PREFERRED FINANCIAL INSTITUTION

19 OR DENIAL OR DELAY.—In carrying out the system 

20 under paragraph (1), an institution of higher edu21 cation shall not— 

22 ‘‘(A) require or encourage a student to se23 lect a particular financial institution to which 

24 an electronic payment under this section shall 

25 be made; or 

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1 ‘‘(B) deny or cause a delay in the disburse2 ment of credit balances based on the selection 

3 by a student of a particular financial institu4 tion. 

5 ‘‘(3) WAIVER.—A public institution of higher 

6 education may seek a waiver from the Secretary of 

7 the requirements of paragraph (1) if a State or local 

8 governmental entity, or a State or local policy or 

9 procedure, prevents compliance with such require10 ments. The Secretary shall grant the waiver only if 

11 such institution ensures that credit balances are pro12 vided to students in a manner consistent with the 

13 goals and purposes of this section, as determined by 

14 the Secretary. 

15 ‘‘(d) DISTRIBUTION OPTIONS.— 

16 ‘‘(1) PILOT PROGRAM.—The Secretary of Edu17 cation, in consultation with the Secretary of the 

18 Treasury and the Director of the Bureau of Con19 sumer Financial Protection, shall conduct a pilot 

20 program on providing students with the option of re21 ceiving credit balances, through the electronic pay22 ment system of the institution of higher education in 

23 accordance with subsection (c), by using the Treas24 ury Direct Express system established under section 

25 3336 of title 31, United States Code, or through any 

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1 other low-cost alternative as determined by the Sec2 retary. 

3 ‘‘(2) IMPLEMENTATION.—If the Secretary of 

4 Education, after conducting the pilot program de5 scribed in paragraph (1), determines that allowing 

6 students with credit balances to use any option de7 scribed in such paragraph is in the best interest of 

8 students, the Secretary shall take such actions as 

9 are necessary to provide any such option to students, 

10 which may include entering into agreements with the 

11 Secretary of the Treasury or other entity to imple12 ment this paragraph.’’. 

13 SEC. 493B. DISCLOSURE OF COHORT RATES BASED ON RE14 PAYMENT PLAN AND DEFERMENT STATUS. 

15 Part G of title IV (20 U.S.C. 1088 et seq.), as 

16 amended by section 493A, is further amended by adding 

17 at the end the following: 

18 ‘‘SEC. 493F. DISCLOSURE OF COHORT RATES BASED ON RE19 PAYMENT PLAN AND DEFERMENT STATUS. 

20 ‘‘(a) PREPARATION AND PUBLICATION OF ADDI21 TIONAL COHORT RATES.— 

22 ‘‘(1) IN GENERAL.—Not less often than once 

23 every fiscal year, the Secretary shall prepare and 

24 publish a report that includes— 

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1 ‘‘(A) all of the cohort rates calculated 

2 under subsections (a) and (c) for each eligible 

3 institution participating in any program under 

4 this title; and 

5 ‘‘(B) the underlying numbers and data 

6 used to calculate the cohort rates described in 

7 paragraph (1). 

8 ‘‘(2) TIMING AND METHOD OF PUBLICATION.— 

9 The Secretary shall publish the report described in 

10 paragraph (1)— 

11 ‘‘(A) on, or as close as practicable to, the 

12 date on which the cohort default rates under 

13 section 435(m) are made available to the public; 

14 and 

15 ‘‘(B) in the same report, or in a nearby lo16 cation on the same website, as the report on co17 hort default rates required under section 

18 435(m)(4). 

19 ‘‘(b) CALCULATION OF COHORT RATES FOR STAF20 FORD AND UNSUBSIDIZED STAFFORD COHORT BOR21 ROWERS.— 

22 ‘‘(1) IDENTIFICATION OF COHORT.—For each 

23 fiscal year, the Secretary shall use, as the cohort for 

24 purposes of calculating the rates described in para25 graph (3), the borrowers of the loans that are inmstockstill on DSK4VPTVN1PROD with BILLS

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1 cluded in the institution’s cohort for purposes of the 

2 cohort default rate calculation under section 435(m), 

3 except that a borrower of multiple loans in such co4 hort shall only be counted as a single borrower. 

5 ‘‘(2) CALCULATION.—Not less often than once 

6 every fiscal year, the Secretary shall calculate for 

7 each eligible institution participating in any program 

8 under this title, the following rates: 

9 ‘‘(A) The percentages of borrowers within 

10 each cohort in each type of deferment status 

11 described— 

12 ‘‘(i) sections 427(a)(2)(C) and 

13 428(b)(1)(M); and 

14 ‘‘(ii) sections 427(a)(2)(C)(vii) and 

15 428(b)(1)(M)(vii) (as in effect prior to the 

16 enactment of the Higher Education 

17 Amendments of 1992). 

18 ‘‘(B) The percentages of borrowers within 

19 each cohort that, as of the date of the deter20 mination, have been delinquent on the loan in21 cluded in the cohort for— 

22 ‘‘(i) at least 30 and not more than 59 

23 days; 

24 ‘‘(ii) at least 60 and not more than 89 

25 days; and 

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1 ‘‘(iii) 90 days or more. 

2 ‘‘(C) Of the borrowers in the cohort that 

3 are in active repayment, the percentages of bor4 rowers in each of the following repayment 

5 plans: 

6 ‘‘(i) Standard repayment. 

7 ‘‘(ii) Extended repayment, for each of 

8 the following maximum repayment periods: 

9 ‘‘(I) Not more than 10 years. 

10 ‘‘(II) More than 10, but not more 

11 than 12, years. 

12 ‘‘(III) More than 12, but not 

13 more than 15, years. 

14 ‘‘(IV) More than 15, but not 

15 more than 20, years. 

16 ‘‘(V) More than 20, but not more 

17 than 25, years. 

18 ‘‘(VI) More than 25, but not less 

19 than 30, years. 

20 ‘‘(iii) An income contingent repayment 

21 plan authorized under section 455(e). 

22 ‘‘(iv) Income-based repayment under 

23 section 493C. 

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1 ‘‘(v) Income-sensitive repayment 

2 under section 428(b)(9)(A)(iii) or 

3 428C(b)(1)(E). 

4 ‘‘(D) Of the borrowers in each group de5 scribed in clauses (iii) through (iv) of subpara6 graph (D), the percentage whose outstanding 

7 balance due on the loan at the end of the year 

8 is greater than the total outstanding balance 

9 due on such loan at the beginning of the year. 

10 ‘‘(c) CALCULATION OF COHORT RATES FOR GRAD11 UATE PLUS BORROWERS.— 

12 ‘‘(1) IN GENERAL.—Not less often than once 

13 every fiscal year, the Secretary shall calculate a co14 hort rate for Graduate PLUS borrowers for each in15 stitution by— 

16 ‘‘(A) identifying the cohort of 1 or more 

17 borrowers of a loan received for attendance at 

18 the institution that— 

19 ‘‘(i) is made to a graduate student 

20 under section 428B, Federal Direct PLUS 

21 Loan, or a loan under section 428C or a 

22 Federal Direct Consolidation Loan that is 

23 used to repay such loan; and 

24 ‘‘(ii) that entered repayment during 

25 the second fiscal year preceding the fiscal 

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1 year for which the determination is being 

2 made; and 

3 ‘‘(B) using the cohort described in sub4 paragraph (A) to calculate the graduate PLUS 

5 cohort rate under paragraph (2). 

6 ‘‘(2) CALCULATION.—The graduate PLUS co7 hort rate under this subsection for an institution 

8 shall be calculated by determining the ratio of— 

9 ‘‘(A) the number of borrowers in the co10 hort described in paragraph (1)(A) for the in11 stitution that have defaulted on a loan included 

12 in the cohort; to 

13 ‘‘(B) the total number of borrowers in such 

14 cohort. 

15 ‘‘(d) CALCULATION OF COHORT RATES FOR PARENT

16 PLUS BORROWERS.— 

17 ‘‘(1) IN GENERAL.—Not less often than once 

18 every fiscal year, the Secretary shall calculate a co19 hort rate for parent PLUS borrowers for each insti20 tution by— 

21 ‘‘(A) identifying the cohort of borrowers 

22 for the fiscal year, in accordance with para23 graph (2); and 

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1 ‘‘(B) using such cohort described in sub2 paragraph (A) to calculate the parent PLUS 

3 cohort rate in accordance with paragraph (3). 

4 ‘‘(2) COHORT.— 

5 ‘‘(A) IN GENERAL.—The cohort for an in6 stitution for purposes of this subsection shall be 

7 the borrowers of a loan under section 428B, 

8 Federal Direct PLUS Loan, or a loan under 

9 section 428C or a Federal Direct Consolidation 

10 Loan that— 

11 ‘‘(i) is made on behalf of a dependent 

12 student under section 428B for attendance 

13 at the institution; and 

14 ‘‘(ii)(I) for determinations made for 

15 fiscal years preceding fiscal year 2025, en16 tered repayment during the period begin17 ning in fiscal year 2015 and ending on 

18 September 30 of the fiscal year preceding 

19 the fiscal year for which the determination 

20 is being made; or 

21 ‘‘(II) for determinations made for fis22 cal year 2025 and each subsequent fiscal 

23 year, entered repayment during the tenth 

24 year preceding the fiscal year for which the 

25 determination is being made. 

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1 ‘‘(3) CALCULATION.—The parent PLUS cohort 

2 rate under this subsection for an institution shall be 

3 calculated by determining the ratio of— 

4 ‘‘(A) the number of borrowers in the co5 hort described in paragraph (1)(A) for the in6 stitution that have defaulted on a loan included 

7 in the cohort; to 

8 ‘‘(B) the total number of borrowers in such 

9 cohort. 

10 ‘‘(e) TREATMENT OF BORROWERS WITH MULTIPLE

11 LOANS.—A borrower with multiple loans in the same bor12 rower repayment cohort of an institution shall be counted 

13 as a single borrower. 

14 ‘‘(f) PROCEDURES.—The Secretary shall carry out 

15 this section in a manner that is as similar as practicable 

16 to the manner in which the Secretary calculates the cohort 

17 default rates under section 435(m), including by using 

18 common definitions, timelines, and procedures. Such pro19 cedures shall include providing an opportunity for each in20 stitution to have a reasonable opportunity (as specified by 

21 the Secretary) to review and correct errors in the informa22 tion required for the purposes of calculating the rates 

23 under this section for such institution, prior to the calcula24 tion of such rate.’’. 

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1 SEC. 493C. INSTITUTIONAL REPORTING REQUIREMENTS. 

2 Part G of title IV (20 U.S.C. 1088 et seq.), as 

3 amended by section 493A and 493B, is further amended 

4 by adding at the end the following: 

5 ‘‘SEC. 493G. INSTITUTIONAL REPORTING REQUIREMENTS. 

6 ‘‘(a) PURPOSES.—The purposes of this section are— 

7 ‘‘(1) to promote better transparency of informa8 tion to students and their families about postsec9 ondary costs and outcomes while protecting student 

10 privacy in data collection; 

11 ‘‘(2) to reduce the burden of data collection on 

12 institutions of higher education, including duplica13 tive IPEDS reporting; 

14 ‘‘(3) to inform institutional and program im15 provement at institutions of higher education; and 

16 ‘‘(4) to help improve laws and policies impact17 ing postsecondary education. 

18 ‘‘(b) IPEDS DATA COMPONENTS.— 

19 ‘‘(1) SUBMISSION OF DATA.—Each institution 

20 of higher education participating in a program under 

21 this title shall submit to the Secretary student unit 

22 record data that is necessary and sufficient, as de23 termined by the Secretary, to complete all student 

24 components of reporting required for the Integrated 

25 Postsecondary Education Data System (referred to 

26 in this section as ‘IPEDS’). 

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1 ‘‘(2) REQUIRED DATA.—The data required to 

2 be reported to the Secretary under paragraph (1) 

3 shall include the minimum number of data elements 

4 necessary and sufficient for the fall enrollment, 12- 

5 month enrollment, completions, student financial aid 

6 and net price, graduation rates, student charges por7 tions of IPEDS, and portions of IPEDS relating to 

8 admissions, test scores, and institutional characteris9 tics surveys, and other surveys, as determined by the 

10 Secretary. The Secretary shall undertake data mini11 mization efforts in collecting this data and shall ag12 gregate the data received and report it publicly at 

13 the institutional, program-specific, and State-specific 

14 level. 

15 ‘‘(3) REVIEW.— 

16 ‘‘(A) IN GENERAL.—Not later than 6 

17 months after the date of enactment of the 

18 Higher Education Affordability Act, the Sec19 retary shall— 

20 ‘‘(i) review the data collected pursuant 

21 to IPEDS to determine whether it is dupli22 cative of the data required to be collected 

23 under this section; and 

24 ‘‘(ii) establish a process by which in25 stitutions of higher education will transimstockstill on DSK4VPTVN1PROD with BILLS

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1 tion to reporting data under this section in 

2 a way that reduces duplication and burden. 

3 ‘‘(B) UPDATE OF REVIEW.—Beginning 5 

4 years after the date of enactment of the Higher 

5 Education Affordability Act, and every 5 years 

6 thereafter or as necessary as determined by the 

7 Secretary, the Secretary shall review and up8 date, as necessary, the categories of data that 

9 shall be submitted pursuant to paragraph (1). 

10 ‘‘(4) GUIDANCE.—Not later than 1 year after 

11 the date of enactment of the Higher Education Af12 fordability Act, the Secretary shall submit to institu13 tions of higher education— 

14 ‘‘(A) guidance related to the submission of 

15 data under this section; and 

16 ‘‘(B) a reasonable timeframe by which in17 stitutions of higher education shall submit the 

18 data. 

19 ‘‘(5) CONTINUATION OF COLLECTION.—IPEDS 

20 data that is required to be collected on the day be21 fore the date of enactment of the Higher Education 

22 Affordability but is not reported into the student 

23 unit record system established under this section 

24 shall continue to be collected. 

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1 ‘‘(c) ESTABLISHMENT OF NEW OUTCOME

2 METRICS.— 

3 ‘‘(1) IN GENERAL.—Data submitted to the Sec4 retary under subsection (b) shall be used to calculate 

5 student components of IPEDS. 

6 ‘‘(2) ADDITIONAL MEASURES TO BE CAL7 CULATED BY THE SECRETARY.—In addition to the 

8 IPEDS student component measures required to be 

9 calculated by the Secretary on the day before the 

10 date of enactment of the Higher Education Afford11 ability Act and the data elements described in sub12 section (b)(2), the Secretary shall also collect the 

13 student unit record data necessary and sufficient to 

14 calculate, beginning not later than 2 years after the 

15 date of enactment of the Higher Education Afford16 ability Act and at the certificate or degree-level, and 

17 institutional, program-specific, and State-specific 

18 level, information concerning each of the following: 

19 ‘‘(A) The dollar amount and number of 

20 students receiving Federal, State, institutional 

21 and private financial aid, including grants, 

22 loans, and cumulative debt that is reported sep23 arately for undergraduate and graduate stu24 dents and disaggregated by completion status. 

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1 ‘‘(B) Graduation, persistence, transfer 

2 rates, and still enrolled rates for all under3 graduate students, reported overall and sepa4 rately for first-time full-time students at entry, 

5 first-time part-time students at entry, transfer 

6 full-time students at entry and part-time trans7 fer students at entry within 100 percent, 150 

8 percent, and 200 percent of the normal time to 

9 graduation, including transfer rates by level of 

10 receiving institution. 

11 ‘‘(C) Completion rates for master’s, profes12 sional, and doctoral level students. 

13 ‘‘(D) Earnings data for undergraduate and 

14 graduate students, disaggregated by completion 

15 status, for each of the following time periods: 

16 ‘‘(i) 2 years after program exit. 

17 ‘‘(ii) 5 years after program exit. 

18 ‘‘(iii) 10 years after program exit. 

19 ‘‘(E) Loan repayment rates for under20 graduate and graduate students, disaggregated 

21 by completion status. 

22 ‘‘(F) Enrollment in subsequent postsec23 ondary education for undergraduate and grad24 uate level students. 

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1 ‘‘(G) Any other measures determined by 

2 the Secretary, after consultation with the Na3 tional Center for Education Statistics and with 

4 input from the postsecondary education commu5 nity, including students, representatives from 

6 institutions of higher education, researchers, 

7 the public, and other relevant stakeholders. 

8 ‘‘(3) REQUIREMENTS FOR THE STUDENT UNIT

9 RECORD DATA SYSTEM.—The Secretary shall estab10 lish a student unit record data system under this 

11 section that shall— 

12 ‘‘(A) establish consistent definitions and 

13 directions for institutions to follow in submit14 ting the student unit record data required 

15 under this section; 

16 ‘‘(B) determine both collection and submis17 sion requirements for this section, including the 

18 CIP codes to be used for reporting program19 specific data; 

20 ‘‘(C) be subject to a privacy impact assess21 ment, as described in section 208 of the E-Gov22 ernment Act of 2002, before collecting informa23 tion; 

24 ‘‘(D) streamline and minimize the data re25 quired to be submitted under subsection (b)(2) 

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1 and paragraph (2), in order to reduce duplica2 tion of reporting of information by institutions 

3 of higher education and to protect student pri4 vacy, which shall be done by working with the 

5 National Center for Education Statistics, the 

6 Office of Federal Student Aid, other offices 

7 within the Department, and other Federal 

8 agencies, as determined appropriate by the Sec9 retary; 

10 ‘‘(E) prepopulate the student unit record 

11 data system with data from existing data 

12 sources, including the National Student Loan 

13 Data System under section 485B, and ensure 

14 that such data is imported into the student unit 

15 record data system but data from the student 

16 unit record system is not exported back to the 

17 National Student Loan Data System or other 

18 existing data sources; 

19 ‘‘(F) include a process, developed in col20 laboration with the Social Security Administra21 tion, by which— 

22 ‘‘(i) the Department submits unit 

23 record lists to the Social Security Adminis24 tration with instructions on how to group 

25 and aggregate the data; and 

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1 ‘‘(ii) the Social Security Administra2 tion, consistent with Social Security Ad3 ministration privacy standards and in a 

4 way that does not reveal personally identi5 fiable information— 

6 ‘‘(I) returns, to the Department, 

7 earnings data for students attending 

8 each institution that is provided in the 

9 aggregate and disaggregated based on 

10 the programs of education attended 

11 and by type of certificate or degree 

12 earned by the graduates; and 

13 ‘‘(II) aggregates the earning data 

14 for students attending institutions in 

15 order to provide institution-specific 

16 and State-specific earnings data need17 ed by the Department for purposes of 

18 paragraph (2); and 

19 ‘‘(G) allow institutions of higher education 

20 to request the system of higher education of 

21 which they are a member or the State in which 

22 they are located to report student unit record 

23 data on their behalf if such reporting fully com24 plies with all the requirements of this section; 

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1 ‘‘(H) report the outcome metrics required 

2 under this subsection, disaggregated, if the 

3 number of students in such subgroup or with 

4 such status is sufficient to avoid revealing per5 sonally identifiable information about an indi6 vidual student, by— 

7 ‘‘(i) race and ethnicity; 

8 ‘‘(ii) gender; 

9 ‘‘(iii) whether and at what level the 

10 student has enrolled in a degree-granting 

11 program, certificate-granting program, or 

12 developmental education; 

13 ‘‘(iv) first-time or transfer status; 

14 ‘‘(v) part-time or full-time status; 

15 ‘‘(vi) disability status, if applicable; 

16 ‘‘(vii) receipt of a Federal Pell Grant; 

17 ‘‘(viii) receipt of a loan made, insured, 

18 or guaranteed under section 428 or a Fed19 eral Direct Stafford Loan; 

20 ‘‘(ix) status as a student who has re21 ceived no Federal Pell Grants, no loans 

22 made, insured, or guaranteed under section 

23 428, and no Federal Direct Stafford 

24 Loans; 

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1 ‘‘(x) age ranges, to be determined by 

2 the Secretary; 

3 ‘‘(xi) military or veteran status; and 

4 ‘‘(xii) other categories determined nec5 essary by the Secretary; and 

6 ‘‘(I) require that data required under this 

7 section be collected for all students, including 

8 undergraduate and graduate students but re9 ported separately for undergraduate and grad10 uate students. 

11 ‘‘(d) REPORTING OF DATA.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall use the 

13 data provided by institutions of higher education 

14 under subsections (b) and (c) only for the following: 

15 ‘‘(A) Publication of such statistical reports 

16 and studies as the Secretary determines appro17 priate, provided that such reports do not dis18 close personally identifiable information to any 

19 party. The Secretary shall specifically provide 

20 public statistical reports on access, costs, finan21 cial aid, educational needs, and student out22 comes that include graduation rates. 

23 ‘‘(B) Management, policy planning, and 

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1 cluding research to improve Federal laws im2 pacting postsecondary education. 

3 ‘‘(C) Consumer information. 

4 ‘‘(D) Providing information to institutions 

5 of higher education for institutional and pro6 gram improvement. 

7 ‘‘(E) To fulfill the IPEDS reporting obli8 gations of institutions of higher education and 

9 reduce the reporting burden on institutions. 

10 ‘‘(2) PUBLIC ACCESS TO INFORMATION.—The 

11 IPEDS data components and new outcome metrics 

12 collected under this section shall be included in the 

13 IPEDS Data Center at the institution and program 

14 specific level. Non-personally identifiable data shall 

15 also be available to the public and widely dissemi16 nated through electronic transfer, or other means, 

17 such as posting on the National Center for Edu18 cation Statistics’ website or other relevant place in 

19 a way that does not allow for the disclosure or dis20 semination of any personally identifiable information 

21 and shall fully comply with rules and regulations of 

22 the National Center for Education Statistics for 

23 data access. 

24 ‘‘(e) INVOLVEMENT OF STAKEHOLDERS IN DEVEL25 OPING CALCULATION AND REPORTING STANDARDS.—In 

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1 carrying out this section, the Secretary shall consult exten2 sively with institutions of higher education, State agencies 

3 of higher education, privacy advocates, education research4 ers, statistical experts, students and their families. 

5 ‘‘(f) PRIVACY, SECURITY, AND USE OF STUDENT

6 UNIT RECORD INFORMATION.— 

7 ‘‘(1) LIMITATIONS ON DISCLOSURE OF INFOR8 MATION.—Personally identifiable information main9 tained in the Federal student unit record data sys10 tem established under this section shall only be dis11 closed to— 

12 ‘‘(A) students whose data is contained in 

13 the system, upon request, and in connection 

14 with their own personally identifiable informa15 tion; 

16 ‘‘(B) institutions of higher education or 

17 their contractors (subject to paragraph (2)), to 

18 the extent that such disclosures may be re19 quired for purposes of data validation or correc20 tion regarding the data that institutions or 

21 their contractors already submitted, provided 

22 that no student-level data elements from other 

23 sources are disclosed to such institutions of 

24 higher education or their contractors; 

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1 ‘‘(C) employees or contractors of the De2 partment to the extent that such disclosure is 

3 necessary for the Secretary to carry out the re4 quirements of this section, and, in the case of 

5 contractors, subject to paragraph (2); or 

6 ‘‘(D) employees or contractors of the So7 cial Security Administration, provided that such 

8 disclosures are limited to the minimum number 

9 of data elements needed to obtain earnings data 

10 specifically authorized in this section, and that 

11 no personally identifiable information from the 

12 student unit record data system is retained by 

13 the Social Security Administration after they 

14 have provided earnings data. 

15 ‘‘(2) REQUIREMENTS FOR CONTRACTS.—In car16 rying out the requirements of this section, the Sec17 retary and institutions of higher education may not 

18 disclose personally identifiable information from 

19 records of students to a contractor, consultant, or 

20 other third party to whom the Secretary or institu21 tion has delegated data collection and maintenance 

22 functions unless that contractor, consultant, or other 

23 third party— 

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1 ‘‘(A) is performing a function or task for 

2 which the Department, or institution of higher 

3 education would otherwise use employees; 

4 ‘‘(B) is under the direct control of the De5 partment or institution with respect to the use 

6 and maintenance of education records; 

7 ‘‘(C) does not use the education records for 

8 any other purposes than those explicitly author9 ized in its contract and agrees to not re-disclose 

10 personally identifiable information to any third 

11 party; 

12 ‘‘(D) uses applicable Federally mandated 

13 or industry-standard encryption technologies; 

14 ‘‘(E) has sufficient administrative and 

15 technical procedures to maintain safeguards 

16 and continuously monitor the security of per17 sonally identifiable information in its custody; 

18 ‘‘(F) provides training to all employees and 

19 responsible individuals, to ensure the security of 

20 education records; 

21 ‘‘(G) provides to the Department or insti22 tution, an acceptable breach remediation plan 

23 prior to the initial receipt of education records; 

24 ‘‘(H) reports all actual and suspected secu25 rity breaches to the Department or institution 

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1 that provided the education records as soon as 

2 detected; 

3 ‘‘(I) in the event of a security breach or 

4 unauthorized disclosure of personally identifi5 able information, pay all costs and liabilities in6 curred by the Department or institution related 

7 to the security breach or unauthorized disclo8 sure, including costs related to inquiries, miti9 gation, notification, and investigation costs; and 

10 ‘‘(J) destroys or returns to the Depart11 ment or institution all such personally identifi12 able information that has been submitted into 

13 the student unit record system upon request of 

14 the Department or institution at the termi15 nation of the contract. 

16 ‘‘(3) DATA AUDIT AND DATA GOVERNANCE SYS17 TEMS.—In order to ensure compliance with all Fed18 eral standards of data quality and individual privacy, 

19 the student unit record data system developed under 

20 this section shall include— 

21 ‘‘(A) a data audit system assessing data 

22 quality; 

23 ‘‘(B) a breach audit system; 

24 ‘‘(C) processes for data safeguarding; and 

25 ‘‘(D) a data governance system. 

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1 ‘‘(4) PROHIBITION AND UNAUTHORIZED USE.— 

2 ‘‘(A) IN GENERAL.—Individual data col3 lected under this section shall not be used for 

4 any purpose not specifically authorized by this 

5 section. 

6 ‘‘(B) NO FUTURE ACTION TAKEN AGAINST

7 AN INDIVIDUAL.— 

8 ‘‘(i) IN GENERAL.—No action of Fed9 eral authority, State authority, or local au10 thority of any kind may be taken against 

11 an individual by utilizing the student unit 

12 record data system established under this 

13 section nor shall the student unit record 

14 data system established under this section 

15 be used— 

16 ‘‘(I) for purposes of— 

17 ‘‘(aa) establishing or 

18 verifying the eligibility of appli19 cants for, or recipients or bene20 ficiaries of, cash or in-kind as21 sistance or payments under Fed22 eral benefit programs; or 

23 ‘‘(bb) continuing compliance 

24 with statutory and regulatory re25 quirements for such assistance or 

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1 payments by such applicants, re2 cipients, or beneficiaries; 

3 ‘‘(II) for recouping payments or 

4 delinquent debts under such Federal 

5 benefit programs; or 

6 ‘‘(III) to affect future edu7 cational, employment, health, civil, 

8 criminal, or other actions against an 

9 individual whose information is main10 tained by the student unit record data 

11 system. 

12 ‘‘(ii) EXCEPTION.—Any data col13 lected, stored outside of the unit record 

14 system prior to enactment of the Higher 

15 Education Affordability Act, and used for 

16 enforcement actions, including data in the 

17 National Student Loan Data System, shall 

18 continue to be used for those purposes 

19 even when duplicates of the data are in20 cluded in the unit record system. 

21 ‘‘(C) GUIDELINES.—The Secretary shall 

22 issue guidelines to institutions regarding the 

23 need to amend the institutions’ required annual 

24 privacy notices to reference the data collection 

25 required under this section. 

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1 ‘‘(D) COMMERCIAL USE PROHIBITED.—No 

2 data collected or maintained under this section 

3 shall sold to third parties nor used to market 

4 any products to individuals whose data is col5 lected under this section. 

6 ‘‘(5) INDIVIDUAL PRIVACY AND ACCESS TO

7 DATA.—Prior to implementation of this section, the 

8 Secretary shall publish for public comment proposed 

9 procedures that ensure— 

10 ‘‘(A) the system developed under this sec11 tion does not disclose any personally identifiable 

12 information and complies with the requirements 

13 of section 444 of the General Education Provi14 sions Act (20 U.S.C. 1232g) (commonly known 

15 as the ‘Family Educational Rights and Privacy 

16 Act’) and other applicable Federal and State 

17 privacy laws; and 

18 ‘‘(B) there is a policy on the use of data 

19 collected under this section that prevents any 

20 use of data outside of the purposes of this sec21 tion. 

22 ‘‘(g) PENALTIES FOR UNAUTHORIZED DISCLOSURE

23 OF DATA.—Any individual who willfully discloses any per24 sonally identifiable information, including personal identi25 fiers, provided under this section, in any manner to an 

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1 entity not authorized to receive such personally identifi2 able information, shall be charged with a class E felony, 

3 punishable by up to 5 years in prison, a fine of $250,000, 

4 or both. 

5 ‘‘(h) WEBSITE AND HOTLINE.—The Secretary shall 

6 establish a website and free hotline number that will pro7 vide information to students, their families, and the public 

8 about the student unit record data system established 

9 under this section to answer any questions the public may 

10 have about such system. 

11 ‘‘(i) COOPERATION OF OTHER FEDERAL AGEN12 CIES.—The Commissioner of Social Security shall work 

13 with the Secretary of Education to establish a process for 

14 matching and obtaining the data required under sub15 section (c)(3)(E). 

16 ‘‘(j) DATA SOVEREIGNTY.—The Secretary shall en17 sure all data maintained in the student unit record system 

18 are stored within the boundaries of the United States or 

19 in a facility owned and controlled by a contractor subject 

20 to the legal jurisdiction of the United States.’’. 

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1 PART H—PROGRAM INTEGRITY 

2 SEC. 496. PUBLIC DISCLOSURE OF FINALIZED ACCREDITA3 TION DOCUMENTS; PROHIBITION ON PRE4 DISPUTE ARBITRATION MANDATES. 

5 (a) REQUIREMENTS FOR ACCREDITING AGENCIES OR

6 ASSOCIATIONS.—Section 496 (20 U.S.C. 1099b) is 

7 amended— 

8 (1) in subsection (a)— 

9 (A) in paragraph (7), by striking ‘‘and’’ 

10 after the semicolon; 

11 (B) in paragraph (8), by striking the pe12 riod and inserting a semicolon; and 

13 (C) by adding at the end the following: 

14 ‘‘(9) such agency or association does not re15 quire any institution to enter into predispute arbi16 tration agreements with the students of the institu17 tion; and 

18 ‘‘(10) such agency or association shall comply 

19 with the requirements of section 444 of the General 

20 Education Provisions Act (commonly known as the 

21 ‘Family Educational Rights and Privacy Act of 

22 1974’) (20 U.S.C. 1232g).’’; 

23 (2) in subsection (c)— 

24 (A) in paragraph (3)(A), by striking ‘‘sec25 tion 487(f)’’ and inserting ‘‘section 487(e)’’; 

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1 (B) in paragraph (8), by striking ‘‘and’’ 

2 after the semicolon; 

3 (C) in paragraph (9)(B), by striking the 

4 period at the end and inserting ‘‘; and’’; and 

5 (D) by adding at the end the following: 

6 ‘‘(10) makes available on the website of the 

7 agency or association, for each institution subject to 

8 its jurisdiction, the accreditation documents relating 

9 to academic and institutional quality, as described in 

10 subsection (o), for the most recent accreditation pe11 riod.’’; 

12 (3) by redesignating subsections (o) through (q) 

13 as subsections (p) through (r), respectively; and 

14 (4) by inserting after subsection (n) the fol15 lowing: 

16 ‘‘(o) FINALIZED ACCREDITATION DOCUMENTS RE17 LATING TO ACADEMIC AND INSTITUTIONAL QUALITY.— 

18 ‘‘(1) IN GENERAL.—The finalized accreditation 

19 documents relating to academic and institutional 

20 quality that are subject to the requirements of sub21 section (c)(10) and section 487(a)(21) shall be any 

22 final report or analysis of the agency or association, 

23 as determined by the Secretary in consultation with 

24 the National Advisory Committee on Institutional 

25 Quality and Integrity, regarding whether an institumstockstill on DSK4VPTVN1PROD with BILLS

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1 tion or program is in compliance with the standards 

2 of the agency or association, including— 

3 ‘‘(A) any finalized self-study report pre4 pared by the institution or program that in5 cludes the assessment of educational quality 

6 and the institution’s or program’s continuing 

7 efforts to improve educational quality; 

8 ‘‘(B) any finalized report by the accred9 iting agency or association on each on-site re10 view conducted of the institution or program 

11 (including any written response by the institu12 tion or program to such report); 

13 ‘‘(C) any finalized written report by the ac14 crediting agency or association assessing the in15 stitution or program’s compliance with the ac16 crediting standards and the institution or pro17 gram’s performance with respect to student 

18 achievement; 

19 ‘‘(D) the documents required under section 

20 496(c)(7) relating to any adverse accrediting 

21 agency or association action regarding the insti22 tution or program, including any decision of 

23 final denial, withdrawal, suspension, or termi24 nation of accreditation, placement on probation, 

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1 or other adverse action, and all supporting doc2 umentation for such action; and 

3 ‘‘(E) a summary by the accrediting agency 

4 or association that clearly explains to the public 

5 the overall assessment, including key concerns, 

6 of the relevant institution or program. 

7 ‘‘(2) APPEALS PROCESS FOR FINALIZED AC8 CREDITATION DOCUMENTS.—The Secretary shall es9 tablish a clear and accessible process for an institu10 tion of higher education to appeal the public release 

11 of finalized accreditation documents under para12 graph (1). 

13 ‘‘(p) SINGLE WEBPAGE TO FINALIZED ACCREDITA14 TION DOCUMENTS.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall estab16 lish and maintain a webpage on the website of the 

17 Department that provides a single point of access to 

18 the finalized accreditation documents relating to the 

19 academic and institutional quality that institutions 

20 of higher education are required to make available 

21 under section 487(a)(21). 

22 ‘‘(2) PUBLIC EXPLANATION REGARDING RE23 DACTED OR UNAVAILABLE INFORMATION.—If the 

24 Secretary makes a decision to delay the release of 

25 the finalized accreditation documents, or to redact 

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1 information from any such documents, for an insti2 tution of higher education, the Secretary shall in3 clude a public explanation of such decision on the 

4 webpage described in paragraph (1).’’. 

5 SEC. 497. IMPROVED TARGETING OF PROGRAM REVIEWS. 

6 Section 498(k)(1) (20 U.S.C. 1099c(k)(1)) is amend7 ed by striking ‘‘section 487(f)’’ and inserting ‘‘section 

8 487(e)’’. 

9 SEC. 498. PROGRAM REVIEW AND DATA. 

10 Section 498A (20 U.S.C. 1099c–1) is amended to 

11 read as follows: 

12 ‘‘SEC. 498A. PROGRAM REVIEW AND DATA. 

13 ‘‘(a) DEFINITIONS.—In this section: 

14 ‘‘(1) EXECUTIVE COMPENSATION.—The term 

15 ‘executive compensation’, when used with respect to 

16 an institution of higher education, means the wages, 

17 salary, fees, commissions, fringe benefits, deferred 

18 compensation, retirement contributions, options, bo19 nuses, property, and any other form of remuneration 

20 that the Secretary determines is appropriate, given 

21 to the 5 percent of employees at the institution who 

22 are the highest compensated. 

23 ‘‘(2) RELEVANT FEDERAL AGENCY.—The term 

24 ‘relevant Federal agency’ means— 

25 ‘‘(A) the Department of Education; 

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1 ‘‘(B) the Department of Veterans Affairs; 

2 ‘‘(C) the Department of Defense; 

3 ‘‘(D) the Bureau of Consumer Financial 

4 Protection; 

5 ‘‘(E) the Federal Trade Commission; or 

6 ‘‘(F) any other Federal agency that pro7 vides Federal student assistance or that the 

8 Secretary determines appropriate. 

9 ‘‘(3) RELEVANT STATE ENTITY OR AGENCY.— 

10 The term ‘relevant State entity or agency’ means— 

11 ‘‘(A) an appropriate State licensing or au12 thorizing agency; 

13 ‘‘(B) the attorney general (or the equiva14 lent thereof) of the State; or 

15 ‘‘(C) any other State entity or agency that 

16 the Secretary determines appropriate. 

17 ‘‘(b) PROGRAM REVIEWS FOR INSTITUTIONS PAR18 TICIPATING UNDER TITLE IV.— 

19 ‘‘(1) IN GENERAL.—The Secretary— 

20 ‘‘(A) is authorized to conduct program re21 views, including on-site visits, of each institu22 tion of higher education participating in a pro23 gram authorized under this title; and 

24 ‘‘(B) shall conduct a program review under 

25 this subsection of each institution of higher 

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1 education that poses a significant risk of failure 

2 to comply with this title, as described in para3 graphs (2) and (3). 

4 ‘‘(2) MANDATORY REVIEWS.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall, 

6 on an annual basis, conduct program reviews of 

7 each institution of higher education partici8 pating in a program authorized under this title 

9 that meets 1 or more of the following criteria: 

10 ‘‘(i) As of the date of the determina11 tion— 

12 ‘‘(I) more than 15 percent of the 

13 students enrolled at the institution 

14 have received a Federal Direct Unsub15 sidized Stafford Loan during the pre16 vious year; and 

17 ‘‘(II) the institution has a cohort 

18 default rate, as defined in section 

19 435(m), that is more than 20 percent. 

20 ‘‘(ii) As of the date of the determina21 tion— 

22 ‘‘(I) the institution has a cohort 

23 default rate, as defined in section 

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1 erage, as determined by the Secretary 

2 in accordance with such section; and 

3 ‘‘(II) the institution has an ag4 gregate amount of defaulted loans, as 

5 determined by the Secretary, that 

6 places the institution in the highest 1 

7 percent of institutions participating in 

8 programs authorized under this title 

9 in terms of the aggregate amount of 

10 defaulted loans. 

11 ‘‘(iii) In the case of proprietary insti12 tutions of higher education, the institution 

13 received more than 80 percent of the insti14 tution’s revenues from Federal funds as 

15 defined in section 102(b)(2)(B), during the 

16 2 most recent years for which data is avail17 able. 

18 ‘‘(iv) The institution is among the top 

19 1 percent of institutions participating in 

20 programs authorized under this title in 

21 terms of numbers or rates of complaints 

22 related to Federal student financial aid, 

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1 ported in the complaint tracking system 

2 established under section 161. 

3 ‘‘(v) As of the date of the determina4 tion, the institution is among the top 1 

5 percent of institutions in terms of low 

6 graduation rates, as determined by the 

7 Secretary, of all institutions participating 

8 in programs authorized under this title. 

9 ‘‘(vi) The institution spends more 

10 than 20 percent of the institution’s reve11 nues on recruiting and marketing activities 

12 and executive compensation. 

13 ‘‘(vii) In the fiscal year immediately 

14 following the most recent cohort default 

15 rate period— 

16 ‘‘(I) the institution’s loan de17 faults increased by 50 percent or 

18 more as compared to the preceding 

19 period; and 

20 ‘‘(II) more than 50 percent of 

21 the students attending the institution 

22 received loans under this title. 

23 ‘‘(viii) The institution has been put on 

24 probation by, or is subject to a show cause 

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1 iting agency or association that is recog2 nized by the Secretary pursuant to part H 

3 of title IV; 

4 ‘‘(ix) The institution, or an executive 

5 of the institution, has publicly acknowl6 edged or disclosed that the institution— 

7 ‘‘(I) is in violation or noncompli8 ance with any provision of law admin9 istered by a relevant Federal agency 

10 or relevant State entity or agency; or 

11 ‘‘(II) is being investigated re12 garding a potential violation of such 

13 provision of law. 

14 ‘‘(x) The institution— 

15 ‘‘(I) is a proprietary institution 

16 of higher education that has acquired 

17 a nonprofit institution of higher edu18 cation at any point during the 1-year 

19 period preceding the date of the deter20 mination; or 

21 ‘‘(II) was a proprietary institu22 tion of higher education and has be23 come a nonprofit institution of higher 

24 education at any time during the 1- 

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1 year period preceding the date of the 

2 determination. 

3 ‘‘(B) PUBLICATION OF INSTITUTIONS RE4 VIEWED.—The Secretary shall— 

5 ‘‘(i) post, on a publicly available 

6 website, the name of each institution of 

7 higher education that is reviewed under 

8 subparagraph (A); 

9 ‘‘(ii) indicate, on such website, with 

10 respect to each such institution, which of 

11 the mandatory review criteria, as described 

12 in subparagraph (A), such institution met; 

13 and 

14 ‘‘(iii) indicate on the College Navi15 gator website of the Department, or any 

16 successor website, the name of each insti17 tution of higher education that is reviewed 

18 under subparagraph (A). 

19 ‘‘(C) INSTITUTIONAL DISCLOSURE OF RE20 VIEW.—Each institution of higher education 

21 that is reviewed under subparagraph (A) 

22 shall— 

23 ‘‘(i) post on the home page of the in24 stitution’s website that the institution will 

25 be subject to a mandatory program review 

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1 and why the institution is being reviewed 

2 and shall maintain such posting and expla3 nation for 1 year or until the Secretary has 

4 issued its final program review report 

5 under subsection (c)(5)(C), whichever oc6 curs sooner; 

7 ‘‘(ii) provide a clear, conspicuous dis8 closure of the information described in 

9 clause (i) to students who inquire about 

10 admission to the institution or submit an 

11 application for admission to the institution 

12 prior to the student signing an enrollment 

13 agreement with the institution, for 1 year 

14 or until the Secretary has issued the final 

15 program review report under subsection 

16 (c)(6)(C), whichever occurs sooner; and 

17 ‘‘(iii) include the information de18 scribed in clause (i) on materials of accept19 ance or admission submitted to each stu20 dent before the student enrolls in the insti21 tution, for 1 year or until the Secretary 

22 has issued the final program review report 

23 under subsection (c)(6)(C), whichever oc24 curs sooner. 

25 ‘‘(3) RISK-BASED REVIEWS.— 

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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 use a risk-based approach to select, on an an3 nual basis not less than 2 percent of institu4 tions of higher education participating in a pro5 gram authorized under this title that are not 

6 reviewed under paragraph (2), for a program 

7 review. This approach shall prioritize program 

8 reviews of institutions that— 

9 ‘‘(i) have received large increases in 

10 funding under this title during the 5-year 

11 period preceding the date of the determina12 tion; 

13 ‘‘(ii) have a large proportion of overall 

14 revenue from Federal funds, as defined in 

15 section 102(b)(2)(B); 

16 ‘‘(iii) have a significant fluctuation in 

17 Federal Direct Stafford Loan volume, Fed18 eral Pell Grant award volume, or any com19 bination thereof, in the year for which the 

20 determination is made, compared to the 

21 year prior to such year, that is not ac22 counted for by changes in the Federal Di23 rect Stafford Loan program, the Federal 

24 Pell Grant program, or any combination 

25 thereof; 

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1 ‘‘(iv) have experienced sharp increases 

2 in enrollment in absolute numbers or rate 

3 of growth; 

4 ‘‘(v) have high rates of defaults, rel5 ative to all other institutions of higher edu6 cation participating in a program author7 ized under this title, for loans issued under 

8 this title over the lifetime of the loans; 

9 ‘‘(vi) have a large aggregate dollar 

10 amount of loans under this title in default, 

11 or a high cohort default rate as described 

12 in section 435(m); 

13 ‘‘(vii) have a high student default 

14 risk, as compared to the student default 

15 risk for all institutions participating in a 

16 program under this title; 

17 ‘‘(viii) have a high proportion or high 

18 rate of complaints related to Federal stu19 dent financial aid, educational practices 

20 and services, or recruiting and marketing 

21 practices, as reported in the complaint 

22 tracking system established under section 

23 161; 

24 ‘‘(ix) have extremely low graduation 

25 rates, as determined by the Secretary; 

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1 ‘‘(x) are in poor financial health ac2 cording to financial responsibility stand3 ards described in section 498(c); 

4 ‘‘(xi) are spending a large percentage 

5 of the institution’s revenues on recruiting 

6 and marketing activities and executive 

7 compensation; 

8 ‘‘(xii) in the case of proprietary insti9 tutions of higher education, have large 

10 profit margins and profit growth; 

11 ‘‘(xiii) have been put on notice or 

12 warning by its accrediting agency; 

13 ‘‘(xiv) has been found to have compli14 ance problems under this title, or is at sig15 nificant risk of failing to comply with ap16 plicable Federal or State laws, by a rel17 evant Federal agency or a relevant State 

18 entity or agency, including the Comptroller 

19 General of the United States; 

20 ‘‘(xv) has had a large amount of funds 

21 returned under section 484B; or 

22 ‘‘(xvi) in the case of proprietary insti23 tutions of higher education, have experi24 enced a change in ownership or control of 

25 the institution, including a buyout. 

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1 ‘‘(B) CRITERIA FOR RISK-BASED RE2 VIEWS.—The Secretary shall publish, and up3 date as necessary, the specific criteria that the 

4 Secretary will use to determine which institu5 tions of higher education are selected for risk6 based reviews under subparagraph (A). 

7 ‘‘(4) PUBLIC DISCLOSURE OF VIOLATIONS.— 

8 The Secretary shall— 

9 ‘‘(A) post on the College Navigator 

10 website, or any successor website, of the De11 partment, the name of each institution of high12 er education that is found to have violated a 

13 provision of this title knowingly and willfully or 

14 with gross negligence; 

15 ‘‘(B) indicate on such website, with respect 

16 to each such institution, which of the provisions 

17 of this title the institution violated; and 

18 ‘‘(C) maintain such posting until the date 

19 the institution of higher education rectifies the 

20 violation or the date that is 1 year after the 

21 date the Secretary issues the final program re22 view report under subsection (c)(6)(C) with re23 spect to such institution, whichever date is 

24 later. 

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1 ‘‘(5) INSTITUTIONAL DISCLOSURE OF VIOLA2 TIONS.—Each institution of higher education that is 

3 found to have violated a provision of this title know4 ingly and willfully or with gross negligence shall— 

5 ‘‘(A) not later than 15 days after the date 

6 of issuance of the final program review report 

7 containing the finding, post on the home page 

8 of the institution’s website that the institution 

9 has been found to have violated a provision of 

10 this title knowingly and willfully or with gross 

11 negligence, including the provision the institu12 tion was found to have violated; 

13 ‘‘(B) maintain such posting until the date 

14 the institution rectifies the violation or the date 

15 that is 1 year after the date the Secretary 

16 issues the final program review report under 

17 subsection (c)(6)(C) with respect to such insti18 tution, whichever date is later; and 

19 ‘‘(C) include the information described in 

20 subparagraph (A) on materials of acceptance or 

21 admission submitted to each student before the 

22 student enrolls in the institution until the date 

23 the institution rectifies the violation or the date 

24 that is 1 year after the date the Secretary 

25 issues the final program review report under 

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1 subsection (c)(6)(C) with respect to such insti2 tution, whichever date is later. 

3 ‘‘(c) CHARACTERISTICS OF PROGRAM REVIEWS.— 

4 ‘‘(1) NOTICE.—The Secretary may give not 

5 more than 72 hours notice to an institution of high6 er education that will undergo a program review 

7 pursuant to subsection (b) of such review. 

8 ‘‘(2) SHARING OF INFORMATION.—The Sec9 retary shall share all final program review deter10 minations conducted under this section with relevant 

11 Federal agencies and relevant State entities or agen12 cies, and appropriate accrediting agencies and asso13 ciations, to enable such agencies, entities, and asso14 ciations to determine the eligibility of institutions for 

15 funds or accreditation. 

16 ‘‘(3) INTERACTION WITH OTHER FEDERAL

17 AGENCIES AND LAWS.—To the extent practicable, 

18 the Secretary shall coordinate program reviews con19 ducted under this section with other reviews and au20 dits conducted by the Department, and with relevant 

21 Federal agencies and relevant State entities or agen22 cies. 

23 ‘‘(4) VIOLATIONS DISCOVERED THROUGH PRO24 GRAM REVIEW.— 

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1 ‘‘(A) VIOLATIONS OF THIS TITLE.—If, in 

2 the course of conducting a program review, the 

3 Secretary obtains evidence that any institution 

4 of higher education or person has engaged in 

5 conduct that may constitute a violation of this 

6 title, including a failure to fully comply with the 

7 program review process and reporting require8 ments under this section, the Secretary may 

9 sanction such institution or person, pursuant to 

10 section 489A. 

11 ‘‘(B) VIOLATIONS OF OTHER FEDERAL

12 LAWS.—If, in the course of conducting a pro13 gram review, the Secretary obtains evidence 

14 that any institution of higher education or per15 son has engaged in conduct that may constitute 

16 a violation of Federal law, the Secretary shall 

17 transmit such evidence to the Attorney General 

18 of the United States, the Director of the Bu19 reau of Consumer Financial Protection, the 

20 Commissioner of the Federal Trade Commis21 sion, or the head of any other appropriate Fed22 eral agency who may institute proceedings 

23 under appropriate law. 

24 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

25 in this paragraph shall be constructed to affect 

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1 any other authority of the Secretary to disclose 

2 information. 

3 ‘‘(5) CONDUCT OF REVIEWS.—When conducting 

4 program reviews under this section, the Secretary 

5 shall assess the institution of higher education’s 

6 compliance with the provisions of this title. Each 

7 program review shall include, at a minimum, the fol8 lowing: 

9 ‘‘(A) With regard to the institutional infor10 mation, the Secretary shall assess financial ca11 pability, administrative capability, and program 

12 integrity, including whether the institution— 

13 ‘‘(i) knowingly and willfully misused 

14 Federal student aid from any source; 

15 ‘‘(ii) violated section 487(a)(20); 

16 ‘‘(iii) engaged in any substantial mis17 representation or other serious violation, as 

18 defined in section 489A; or 

19 ‘‘(iv) violated the program integrity 

20 regulations promulgated by the Secretary 

21 under this Act. 

22 ‘‘(B) With regard to student information, 

23 the Secretary shall examine— 

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1 ‘‘(i) graduation rates compared with 

2 all other institutions participating in a pro3 gram authorized under this title; 

4 ‘‘(ii) student complaints, including 

5 interviews with current and former stu6 dents, faculty and staff, and accrediting 

7 agencies; and 

8 ‘‘(iii) information from the complaint 

9 data system established under section 161. 

10 ‘‘(6) ADMINISTRATIVE PROCESS.— 

11 ‘‘(A) TRAINING.—The Secretary shall pro12 vide training, including investigative training, to 

13 personnel of the Department designed to im14 prove the quality of financial and compliance 

15 audits and program reviews conducted under 

16 this section, including instruction about appro17 priately and effectively conducting such audits 

18 and reviews for institutions of higher education 

19 from different sectors of higher education. 

20 ‘‘(B) CARRYING OUT PROGRAM RE21 VIEWS.—In carrying out program reviews under 

22 this section, the Secretary shall— 

23 ‘‘(i) establish guidelines designed to 

24 ensure uniformity of practice in the con25 duct of such reviews; 

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1 ‘‘(ii) make available to each institu2 tion of higher education participating in a 

3 program authorized under this title com4 plete copies of all review guidelines and 

5 procedures used in program reviews, except 

6 that internal training materials for Depart7 ment staff related to identifying instances 

8 of fraud, misrepresentation, or intentional 

9 noncompliance shall not be disclosed; 

10 ‘‘(iii) permit an institution of higher 

11 education to correct or cure an administra12 tive, accounting, or recordkeeping error 

13 within 90 days of the issuance of the final 

14 program review report, if the error is not 

15 part of a pattern of error and there is no 

16 evidence of fraud or misconduct related to 

17 the error; 

18 ‘‘(iv) without sharing personally iden19 tifiable information and in accordance with 

20 section 444 of the General Education Pro21 visions Act (20 U.S.C. 1232g, commonly 

22 known as the ‘Family Educational Rights 

23 and Privacy Act of 1974’), inform the rel24 evant Federal agencies and relevant State 

25 entities or agencies, and accrediting agency 

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1 or association, whenever the Secretary 

2 finds a violation of this title or sanctions 

3 an institution of higher education under 

4 section 432, 489A, or 498; and 

5 ‘‘(v) provide to an institution of high6 er education 90 calendar days to review 

7 and respond to any program review report 

8 and relevant materials related to the report 

9 before any final program review report is 

10 issued. 

11 ‘‘(C) FINAL PROGRAM REVIEW DETER12 MINATION.— 

13 ‘‘(i) IN GENERAL.—Not later than 

14 180 calendar days after issuing a program 

15 review report under this section, the Sec16 retary shall review and consider an institu17 tion of higher education’s response, and 

18 issue a final program review determination 

19 or audit determination. The final deter20 mination shall include— 

21 ‘‘(I) a written statement address22 ing the institution of higher edu23 cation’s response; 

24 ‘‘(II) a written statement of the 

25 basis for such determination; and 

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1 ‘‘(III) a copy of the institution’s 

2 response. 

3 ‘‘(ii) CONFIDENTIALITY.—The Sec4 retary shall maintain and preserve at all 

5 times the confidentiality of any program 

6 review report until a final program review 

7 determination is issued, other than to in8 form the relevant Federal agencies and rel9 evant State entities or agencies, and ac10 crediting agency or association, as required 

11 under this section. 

12 ‘‘(D) REPORTS DISCLOSED TO THE INSTI13 TUTION.—The Secretary shall promptly disclose 

14 each program review report and each final pro15 gram review determination to the institution of 

16 higher education under review. 

17 ‘‘(E) REMOVAL OF PERSONALLY IDENTIFI18 ABLE INFORMATION.—Any personally identifi19 able information from the education records of 

20 students shall be removed from any program re21 view report or final program review determina22 tion before the report is shared with any rel23 evant Federal agency, State entity or agency, or 

24 accrediting agency or association. 

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1 ‘‘(7) FOLLOW-UP REVIEWS AFTER VIOLA2 TIONS.—The Secretary shall conduct follow-up re3 views of each institution of higher education that 

4 has been found in violation of a provision of this 

5 title not later than 1 year after the date of such 

6 finding. Such follow-up reviews may only assess 

7 whether the institution of higher education has cor8 rected violations found in a previous program review 

9 or final program review determination.’’. 

10 PART I—STATE-FEDERAL COLLEGE 

11 AFFORDABILITY PARTNERSHIP 

12 SEC. 499. STATE-FEDERAL COLLEGE AFFORDABILITY PART13 NERSHIP. 

14 Title IV of the Higher Education Act of 1965 (20 

15 U.S.C. 1070 et seq.) is amended by adding at the end 

16 the following: 

17 ‘‘PART J—STATE-FEDERAL COLLEGE 

18 AFFORDABILITY PARTNERSHIP 

19 ‘‘SEC. 499–1. PURPOSE. 

20 ‘‘The purpose of this part is to establish a State-Fed21 eral partnership that incentivizes State investment in pub22 lic higher education. 

23 ‘‘SEC. 499–2. DEFINITIONS. 

24 ‘‘In this part: 

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1 ‘‘(1) ELIGIBLE STATE.—The term ‘eligible 

2 State’ means a State that provides net State oper3 ating support per FTE student in an amount equal 

4 to not less than 50 percent of the amount that re5 flects the maximum Federal Pell Grant award 

6 amount. 

7 ‘‘(2) FULL-TIME EQUIVALENT STUDENT NUM8 BER.—The term ‘full-time equivalent student num9 ber’ means a number that reflects the sum of the 

10 number of students enrolled full time at a public in11 stitution of higher education in the State, plus the 

12 full-time equivalent of the number of students en13 rolled part time (determined on the basis of the 

14 quotient of the sum of the credit hours of all part15 time students divided by 12) at such institutions. 

16 The Secretary may establish a methodology for cal17 culating the full-time equivalent student number and 

18 may offer guidance to States in determining the 

19 State’s full-time equivalent student number for pur20 poses of this part. 

21 ‘‘(3) NET STATE OPERATING SUPPORT.—The 

22 term ‘net State operating support’ means an amount 

23 that is equal to the amount of State funds and local 

24 government appropriations used to support public 

25 higher education annual operating expenses in the 

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1 State, calculated in accordance with subparagraphs 

2 (A) and (B). 

3 ‘‘(A) CALCULATION.—A State’s net State 

4 operating support shall be an amount that is 

5 equal to the difference resulting from the gross 

6 amount of State funds annually appropriated 

7 for public higher education operating expenses 

8 in the State; minus— 

9 ‘‘(i) such appropriations that are re10 turned to the State; 

11 ‘‘(ii) State-appropriated funds derived 

12 from Federal sources, including funds pro13 vided under this part; 

14 ‘‘(iii) local government funds not ap15 propriated for operating support for public 

16 higher education; 

17 ‘‘(iv) amounts that are portions of 

18 multi-year appropriations to be distributed 

19 over multiple years; 

20 ‘‘(v) tuition charges remitted to the 

21 State to offset State appropriations; 

22 ‘‘(vi) State funding for students in 

23 non-credit continuing or adult education 

24 courses and non-credit extension courses; 

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1 ‘‘(vii) sums appropriated to private 

2 nonprofit institutions of higher education, 

3 or to proprietary institutions of higher 

4 education, for capital outlay or operating 

5 expenses; and 

6 ‘‘(viii) any other funds excluded under 

7 subparagraph (B). 

8 ‘‘(B) EXCLUSIONS.—Net State operating 

9 support does not include funds for— 

10 ‘‘(i) student aid programs that provide 

11 grants to students attending in-State pri12 vate nonprofit institutions of higher edu13 cation, in-State proprietary institutions of 

14 higher education, independent institutions, 

15 in-State public institutions, and out-of16 State institutions; 

17 ‘‘(ii) capital outlay; 

18 ‘‘(iii) deferred maintenance; 

19 ‘‘(iv) research and development; or 

20 ‘‘(v) any other funds that the Sec21 retary may exclude. 

22 ‘‘(4) NET STATE OPERATING SUPPORT PER FTE

23 STUDENT.—The term ‘Net State Operating Support 

24 per FTE student’ means, for a fiscal year— 

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1 ‘‘(A) the net State operating support for 

2 the previous fiscal year; divided by 

3 ‘‘(B) the full-time equivalent student num4 ber for the previous fiscal year. 

5 ‘‘(5) PUBLIC INSTITUTION.—The term ‘public 

6 institution’ means an institution of higher education 

7 (as defined in section 101) whose liabilities are 

8 backed by the full faith and credit of the State or 

9 its equivalent, as determined in accordance with sec10 tion 668.15 of title 34, Code of Federal Regulations, 

11 or any successor regulation. 

12 ‘‘(6) PRIVATE NONPROFIT INSTITUTION OF

13 HIGHER EDUCATION.—The term ‘private nonprofit 

14 institution of higher education’ means an institution 

15 of higher education, as defined in section 102, that 

16 is a private nonprofit institution. 

17 ‘‘(7) PROPRIETARY INSTITUTION OF HIGHER

18 EDUCATION.—The term ‘proprietary institution of 

19 higher education’ has the meaning given the term in 

20 section 102(b). 

21 ‘‘SEC. 499–3. AUTHORIZATION; USE OF FUNDS. 

22 ‘‘(a) AUTHORIZATION.—The Secretary shall award 

23 annual block grants to eligible States to encourage States 

24 to provide additional funding for public higher education. 

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1 ‘‘(b) USE OF FUNDS BY STATES.—An eligible State 

2 receiving a block grant under this part shall allocate 100 

3 percent of block grant funding to public institutions for 

4 public higher education expenditures in accordance with 

5 subsection (c). 

6 ‘‘(c) USE OF FUNDS BY PUBLIC INSTITUTIONS.—A 

7 public institution that receives funds under this title 

8 shall— 

9 ‘‘(1) use a portion of such funds to directly re10 duce tuition costs or mitigate the need to raise tui11 tion and fees for students residing in the State; 

12 ‘‘(2) use a portion of such funds to support the 

13 enrollment of low-income students (as measured by 

14 eligibility for Federal Pell Grants) in the institution; 

15 and 

16 ‘‘(3) create a publicly available report that doc17 uments an institution’s efforts to satisfy the require18 ments described in paragraphs (1) and (2). 

19 ‘‘(d) PROHIBITIONS.— 

20 ‘‘(1) NO USE FOR ENDOWMENTS.—A public in21 stitution may not use funds received under this title 

22 to increase its endowment. 

23 ‘‘(2) NO USE FOR ATHLETIC OR COMMERCIAL

24 VENUES.—No funds awarded under this title may be 

25 used for the modernization, renovation, or repair of 

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1 stadiums or other facilities of a public institution 

2 primarily used for athletic contests or events for 

3 which admission is charged to the general public. 

4 ‘‘(e) STATE LIMITATIONS ON INSTITUTIONS.—Noth5 ing in this section shall be construed to prohibit a State 

6 from establishing additional requirements for public insti7 tutions in the State for the purpose of increasing the af8 fordability of higher education. 

9 ‘‘SEC. 499–4. GRANT FORMULA. 

10 ‘‘(a) GRANT FORMULA.—The Secretary shall award 

11 a block grant to an eligible State for a fiscal year in an 

12 amount equal to the product of— 

13 ‘‘(1) the marginal Federal match amount, as 

14 determined under subsection (b) for the fiscal year 

15 and adjusted in accordance with subsection (c); mul16 tiplied by 

17 ‘‘(2) the full-time equivalent student number for 

18 the previous fiscal year. 

19 ‘‘(b) FEDERAL MATCH AMOUNT.—The Federal 

20 match amount will be determined in accordance with the 

21 following table: 

‘‘Net State Operating Support 

Per FTE student 

Federal match amount per FTE 

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 

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‘‘Net State Operating Support 

Per FTE student 

Federal match amount per FTE 

student 

$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. 

1 ‘‘(c) ADJUSTMENTS BASED ON THE MAXIMUM FED2 ERAL PELL GRANT AMOUNT.—For each award year sub3 sequent to 2014, the dollar amounts in the table under 

4 subsection (b) shall only be increased (rounded to the 

5 nearest dollar) by the percentage by which— 

6 ‘‘(1) the maximum Pell Grant award amount 

7 for such award year, exceeds 

8 ‘‘(2) $5,730. 

9 ‘‘(d) RATABLE REDUCTION.—If the sums made avail10 able under this part for any fiscal year are insufficient 

11 to pay the full amounts that all States are eligible to re12 ceive in accordance with this section for such year, the 

13 Secretary shall establish procedures for ratably reducing 

14 each State’s award amount. 

15 ‘‘SEC. 499–5. ACCOUNTABILITY AND ENFORCEMENT. 

16 ‘‘(a) ANNUAL REPORT.— 

17 ‘‘(1) IN GENERAL.—Beginning for the first fis18 cal year after a State receives a block grant under 

19 this part, the State shall prepare and submit an an20 nual report to the Secretary, which shall include de21 tailed information about the State’s use of grant 

22 funds to increase the affordability of public higher 

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1 education and increase the enrollment of low-income 

2 students (as measured by eligibility for a Federal 

3 Pell Grant). 

4 ‘‘(2) CONTENTS.—A report described in para5 graph (1) shall— 

6 ‘‘(A) describe all actions taken to 

7 incentivize public institutions to reduce tuition 

8 costs, or mitigate the need to raise tuition and 

9 fees for in-State students; 

10 ‘‘(B) explain the extent to which public in11 stitutions supported the enrollment of low-in12 come students who are eligible for Federal Pell 

13 Grants or other need-based financial assistance; 

14 ‘‘(C) disclose how the State distributed the 

15 allotment provided under this part to all public 

16 institutions, and the rationale for such distribu17 tion; 

18 ‘‘(D) include the aggregated graduation 

19 rates for low-income students (based on eligi20 bility for Federal Pell Grants), part-time stu21 dents, and transfer students, disaggregated by 

22 type of degree or credential; and 

23 ‘‘(E) be publicly available in a manner that 

24 is easily accessible to parents, students, and 

25 consumer advocates. 

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1 ‘‘(b) MAINTAINING NET STATE OPERATING SUP2 PORT PER FTE STUDENT.— 

3 ‘‘(1) IN GENERAL.—Each State receiving an al4 lotment under this part for a fiscal year shall— 

5 ‘‘(A) ensure that the amount expended by 

6 the State, from funds derived from non-Federal 

7 sources, for net State operating support per 

8 FTE student for the preceding fiscal year was 

9 not less than the amount expended by the State 

10 for net State operating support per FTE stu11 dent for the second preceding fiscal year; and 

12 ‘‘(B) demonstrate the State’s compliance 

13 with subparagraph (A) by providing the Sec14 retary with a written assurance and detailed 

15 documentation. 

16 ‘‘(2) PENALTY.—If a State does not comply 

17 with paragraph (1), the State’s grant award under 

18 this part shall be reduced by an amount equal to the 

19 product of— 

20 ‘‘(A) the difference between— 

21 ‘‘(i) the net State operating support 

22 per FTE student for the second preceding 

23 fiscal year; minus 

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1 ‘‘(ii) the net State operating support 

2 per FTE student for the preceding fiscal 

3 year; multiplied by 

4 ‘‘(B) the full-time equivalent student num5 ber for the previous fiscal year. 

6 ‘‘(c) MAINTENANCE OF EFFORT FOR STATE-BASED

7 FINANCIAL AID.—Each State receiving an allotment 

8 under this part for a fiscal year shall, as a condition of 

9 receiving the allotment, maintain the level of State student 

10 financial aid support provided for costs associated with 

11 postsecondary education at not less than the level of such 

12 support provided for the academic year immediately pre13 ceding the year for which the State is receiving the allot14 ment. 

15 ‘‘(d) AUTHORITY TO COMPROMISE.—Notwith16 standing subsections (b) and (c), the Secretary may waive 

17 any maintenance of support and effort requirement de18 scribed in such subsections for a State if there is a clear 

19 case of a significant economic downturn in the State. Such 

20 determination shall only be made by the Secretary fol21 lowing a written appeal by the State that documents re22 cent and significant decreases in economic activity in the 

23 State. 

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1 ‘‘SEC. 499–6. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There are authorized to be appropriated to carry out 

3 this part such sums as may be necessary for fiscal year 

4 2015 and each of the five succeeding fiscal years.’’. 

5 TITLE V—DEVELOPING 

6 INSTITUTIONS 

7 SEC. 501. RULE OF CONSTRUCTION. 

8 Section 501 (20 U.S.C. 1101) is amended— 

9 (1) in the section heading, by striking ‘‘AND

10 PROGRAM AUTHORITY’’ and inserting ‘‘PRO11 GRAM AUTHORITY; RULE OF CONSTRUCTION’’; 

12 and 

13 (2) by adding at the end the following: 

14 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this Act 

15 shall be construed to restrict an institution from using 

16 funds provided under a section of this title for activities 

17 and uses that were authorized under such section on the 

18 day before the date of enactment of the Higher Education 

19 Affordability Act.’’. 

20 SEC. 502. AUTHORIZED ACTIVITIES UNDER PART A OF 

21 TITLE V. 

22 Section 503 (20 U.S.C. 1101b) is amended— 

23 (1) by striking subsection (b) and inserting the 

24 following: 

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1 ‘‘(b) AUTHORIZED ACTIVITIES.—Grants awarded 

2 under this section shall be used for 1 or more of the fol3 lowing activities: 

4 ‘‘(1) The purchase, rental, or lease of edu5 cational resources. 

6 ‘‘(2) The construction, maintenance, renovation, 

7 or joint use and improvement of classrooms, librar8 ies, laboratories, or other instructional facilities, in9 cluding the integration of computer technology into 

10 institutional facilities to create smart buildings. 

11 ‘‘(3) Support of faculty exchanges, faculty de12 velopment, and faculty fellowships to assist members 

13 of the faculty in attaining advanced degrees in their 

14 field of instruction. 

15 ‘‘(4) Student support services, including the de16 velopment and improvement of academic programs, 

17 tutoring, counseling, school sanctioned travel, and fi18 nancial literacy for students and families. 

19 ‘‘(5) Improving funds management, administra20 tive management, and the acquisition of equipment 

21 for use in strengthening funds management. 

22 ‘‘(6) Maintaining financial stability through es23 tablishing or developing a contributions development 

24 office or endowment fund. 

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1 ‘‘(7) Other activities proposed in the application 

2 submitted pursuant to section 521(b)(1) that— 

3 ‘‘(A) contribute to carrying out the pur4 poses of the program assisted under this part; 

5 and 

6 ‘‘(B) are approved by the Secretary as part 

7 of the review and acceptance of such applica8 tion.’’; and 

9 (2) in subsection (c)— 

10 (A) in paragraph (2), by inserting ‘‘75 per11 cent of’’ after ‘‘equal to or greater than’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(4) SCHOLARSHIP.—A Hispanic-serving insti14 tution that uses grant funds under this title to es15 tablish or increase an endowment fund may use the 

16 interest proceeds from such endowment to provide 

17 scholarships to students for the purposes of attend18 ing such institution.’’. 

19 SEC. 503. DURATION OF GRANTS UNDER TITLE V. 

20 Section 504 (20 U.S.C. 1101c) is amended by adding 

21 at the end the following: 

22 ‘‘(c) REQUIREMENT FOR FOURTH AND FIFTH YEAR

23 OF FUNDING.— 

24 ‘‘(1) IN GENERAL.—Before receiving funding 

25 under this title for the fourth or fifth year of the 

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1 grant, each Hispanic-serving institution receiving a 

2 grant under this title shall demonstrate to the Sec3 retary that the institution is making progress in im4 plementing the activities described in the institu5 tion’s application under section 521(b)(1) at a rate 

6 that the Secretary determines will result in the full 

7 implementation of those activities during the remain8 der of the grant period. 

9 ‘‘(2) CONSIDERATION OF DATA AND INFORMA10 TION.—The Secretary shall consider any data or in11 formation provided to the Department by grantees 

12 for the continued receipt of grants under this title 

13 under paragraph (1) that is considered in accord14 ance with regulations issued by the Secretary before 

15 the date of enactment of the Higher Education Af16 fordability Act. Any requirements the Secretary de17 velops for institutions in accordance with regulations 

18 issued by the Secretary after the date of enactment 

19 of the Higher Education Affordability Act to carry 

20 out this subsection shall take into account the capac21 ity and resources of institutions to comply with such 

22 requirements.’’. 

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1 SEC. 504. AUTHORIZED ACTIVITIES UNDER PART B OF 

2 TITLE V. 

3 Section 513 (20 U.S.C. 1102b) is amended to read 

4 as follows: 

5 ‘‘SEC. 513. AUTHORIZED ACTIVITIES. 

6 ‘‘Grants awarded under this part shall be used for 

7 1 or more of the following activities: 

8 ‘‘(1) The purchase, rental, or lease of edu9 cational resources. 

10 ‘‘(2) The construction, maintenance, renovation, 

11 or joint use and improvement of classrooms, librar12 ies, laboratories, or other instructional facilities, in13 cluding the integration of computer technology into 

14 institutional facilities to create smart buildings. 

15 ‘‘(3) Support of faculty exchanges, faculty de16 velopment, and faculty fellowships to assist members 

17 of the faculty in attaining advanced degrees in their 

18 field of instruction. 

19 ‘‘(4) Support for low-income postbaccalaureate 

20 students, including outreach, academic support serv21 ices, mentoring, scholarships, fellowships, and other 

22 financial assistance to permit the enrollment of low23 income students in postbaccalaureate certificate pro24 grams and postbaccalaureate degree granting pro25 grams. 

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1 ‘‘(5) Collaboration with other institutions of 

2 higher education to expand postbaccalaureate certifi3 cate and postbaccalaureate degree offerings. 

4 ‘‘(6) Other activities proposed in the applica5 tions submitted pursuant to section 514(a) and sec6 tion 521(b)(1) that— 

7 ‘‘(A) contribute to carrying out the pur8 poses of this part; and 

9 ‘‘(B) are approved by the Secretary as part 

10 of the review and acceptance of such applica11 tion.’’. 

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

13 V. 

14 Section 514 (20 U.S.C. 1102c) is amended by adding 

15 at the end the following: 

16 ‘‘(d) REQUIREMENT FOR FOURTH AND FIFTH YEAR

17 OF FUNDING.— 

18 ‘‘(1) IN GENERAL.—Before receiving funding 

19 under this part for the fourth or fifth year of the 

20 grant, each Hispanic-serving institution receiving a 

21 grant under this part shall demonstrate to the Sec22 retary that the institution is making progress in im23 plementing the activities described in the institu24 tion’s applications under subsection (a) and section 

25 521(b)(1) at a rate that the Secretary determines 

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1 will result in the full implementation of those activi2 ties during the remainder of the grant period. 

3 ‘‘(2) CONSIDERATION OF DATA AND INFORMA4 TION.—The Secretary shall consider any data or in5 formation provided to the Department by grantees 

6 for the continued receipt of grants under this title 

7 under paragraph (1) that is considered in accord8 ance with regulations issued by the Secretary before 

9 the date of enactment of the Higher Education Af10 fordability Act. Any requirements the Secretary de11 velops for institutions in accordance with regulations 

12 issued by the Secretary after the date of enactment 

13 of the Higher Education Affordability Act to carry 

14 out this subsection shall take into account the capac15 ity and resources of institutions to comply with such 

16 requirements.’’. 

17 SEC. 506. WAIVER AUTHORITY; REPORTING REQUIREMENT; 

18 TECHNICAL ASSISTANCE. 

19 Part C of title V (20 U.S.C. 1103 et seq.) is further 

20 amended— 

21 (1) by redesignating section 528 as section 529; 

22 and 

23 (2) by inserting after section 527 the following: 

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1 ‘‘SEC. 528. TECHNICAL ASSISTANCE. 

2 ‘‘(a) IN GENERAL.—The Secretary shall provide tech3 nical assistance, as requested, to institutions that receive 

4 grants under part A or B to assist such institutions in 

5 the use or development of student data for the purposes 

6 of supporting students’ progress and completion at such 

7 institutions. 

8 ‘‘(b) REQUIREMENTS.—In order to provide institu9 tions with the assistance necessary to carry out this sec10 tion, institutions who receive grants under part A shall 

11 report to the Secretary on— 

12 ‘‘(1) the number and percentage of under13 graduate students who, upon entry into the institu14 tion, matriculate into a major field of study or other 

15 program leading to a postsecondary certificate, an 

16 associate’s degree, or a baccalaureate degree; 

17 ‘‘(2) student persistence data for the institu18 tion’s undergraduates, demonstrating how many stu19 dents are continuously enrolled in the institution, 

20 which shall be measured in a manner proposed by 

21 the institution and approved by the Secretary; and 

22 ‘‘(3) data on the number of undergraduate stu23 dents making satisfactory academic progress, as de24 fined in regulations promulgated by the Department 

25 at the time such data is reported.’’. 

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1 SEC. 507. AUTHORIZATIONS OF APPROPRIATIONS FOR DE2 VELOPING INSTITUTIONS. 

3 Section 529(a), as redesignated by paragraph (1) of 

4 section 506, is amended— 

5 (1) in paragraph (1), by striking 

6 ‘‘$175,000,000 for fiscal year 2009 and such sums 

7 as may be necessary for each of the five succeeding 

8 fiscal years’’ and inserting ‘‘such sums as may be 

9 necessary for fiscal year 2015 and such sums as 

10 may be necessary for each of the five succeeding fis11 cal years’’; and 

12 (2) in paragraph (2), by striking 

13 ‘‘$100,000,000 for fiscal year 2009 and such sums 

14 as may be necessary for each of the five succeeding 

15 fiscal years’’ and inserting ‘‘such sums as may be 

16 necessary for fiscal year 2015 and such sums as 

17 may be necessary for each of the five succeeding fis18 cal years’’. 

19 TITLE VI—INTERNATIONAL 

20 EDUCATION PROGRAMS 

21 SEC. 601. TECHNICAL AND CONFORMING AMENDMENT. 

22 Section 631(a)(2) (20 U.S.C. 1132(a)(2)) is amended 

23 by striking ‘‘and’’ after the semicolon. 

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1 SEC. 602. AUTHORIZATION OF APPROPRIATIONS FOR 

2 INTERNATIONAL AND FOREIGN LANGUAGE 

3 STUDIES. 

4 Section 610 (20 U.S.C. 1128b) is amended by strik5 ing ‘‘2009’’ and inserting ‘‘2015’’. 

6 SEC. 603. AUTHORIZATION OF APPROPRIATIONS FOR BUSI7 NESS AND INTERNATIONAL EDUCATION PRO8 GRAMS. 

9 Section 614 (20 U.S.C. 1130b) is amended— 

10 (1) in subsection (a), by striking ‘‘2009’’ and 

11 inserting ‘‘2015’’; and 

12 (2) in subsection (b), by striking ‘‘2009’’ and 

13 inserting ‘‘2015’’. 

14 SEC. 604. AUTHORIZATION OF APPROPRIATIONS FOR THE 

15 INSTITUTE FOR INTERNATIONAL PUBLIC 

16 POLICY. 

17 Section 629 (20 U.S.C. 1131f) is amended by strik18 ing ‘‘2009’’ and inserting ‘‘2015’’. 

19 SEC. 605. AUTHORIZATION OF APPROPRIATIONS FOR THE 

20 SCIENCE AND TECHNOLOGY ADVANCED FOR21 EIGN LANGUAGE EDUCATION GRANT PRO22 GRAM. 

23 Section 637(f) (20 U.S.C. 1132–6(f)) is amended by 

24 striking ‘‘2009’’ and inserting ‘‘2015’’. 

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1 TITLE VII—GRADUATE AND 

2 POSTSECONDARY IMPROVE3 MENT PROGRAMS 

4 SEC. 701. AUTHORIZATION OF APPROPRIATIONS FOR THE 

5 JACOB K. JAVITS FELLOWSHIP PROGRAM. 

6 Section 705 (20 U.S.C. 1134d) is amended by strik7 ing ‘‘$30,000,000 for fiscal year 2009’’ and inserting 

8 ‘‘such sums as may be necessary for fiscal year 2015’’. 

9 SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR 

10 GRADUATE ASSISTANCE IN AREAS OF NA11 TIONAL NEED. 

12 Section 716 (20 U.S.C. 1135e) is amended by strik13 ing ‘‘$35,000,000 for fiscal year 2009’’ and inserting 

14 ‘‘such sums as may be necessary for fiscal year 2015’’. 

15 SEC. 703. AUTHORIZATION OF APPROPRIATIONS FOR THE 

16 THURGOOD MARSHALL LEGAL EDUCATIONAL 

17 OPPORTUNITY PROGRAM. 

18 Section 721(h) (20 U.S.C. 1136(h)) is amended by 

19 striking ‘‘$5,000,000 for fiscal year 2009’’ and inserting 

20 ‘‘such sums as may be necessary for fiscal year 2015’’. 

21 SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR MAS22 TERS DEGREE PROGRAMS AT HISTORICALLY 

23 BLACK COLLEGES AND UNIVERSITIES AND 

24 PREDOMINANTLY BLACK INSTITUTIONS. 

25 Section 725 (20 U.S.C. 1136c) is amended— 

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1 (1) in subsection (a), by striking ‘‘2009’’ and 

2 inserting ‘‘2015’’; and 

3 (2) in subsection (b), by striking ‘‘2009’’ and 

4 inserting ‘‘2015’’. 

5 SEC. 705. AUTHORIZATION OF APPROPRIATIONS FOR THE 

6 FUND FOR IMPROVEMENT OF POSTSEC7 ONDARY EDUCATION. 

8 Section 745 (20 U.S.C. 1138d) is amended by strik9 ing ‘‘2009’’ and inserting ‘‘2015’’. 

10 SEC. 706. CORRECTLY RECOGNIZING EDUCATIONAL 

11 ACHIEVEMENTS TO EMPOWER GRADUATES. 

12 Title VII (20 U.S.C. 1133 et seq.) is amended by in13 serting after part B the following: 

14 ‘‘PART C—CORRECTLY RECOGNIZING EDU15 CATIONAL ACHIEVEMENTS TO EMPOWER 

16 GRADUATES 

17 ‘‘SEC. 751. PURPOSE. 

18 ‘‘The purpose of this part is to award grants to 

19 States to support efforts at institutions of higher edu20 cation, or within systems of higher education, to increase 

21 postsecondary degree attainment by— 

22 ‘‘(1) locating, and conferring degrees to, stu23 dents who have accumulated sufficient applicable 

24 postsecondary credits and maintained satisfactory 

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1 academic progress to earn an associate’s degree but 

2 did not receive one; 

3 ‘‘(2) providing outreach to those students who 

4 are within 12 credits of earning an associate’s de5 gree; and 

6 ‘‘(3) establishing partnerships between 2-year 

7 and 4-year institutions of higher education in States, 

8 in order to strengthen the transition pathways into 

9 4-year institutions of higher education for transfer 

10 students. 

11 ‘‘SEC. 752. GRANTS TO INCREASE DEGREE ATTAINMENT. 

12 ‘‘(a) DEFINITION OF INSTITUTION OF HIGHER EDU13 CATION.—In this section, the term ‘institution of higher 

14 education’ has the meaning given the term in section 

15 101(a). 

16 ‘‘(b) PROGRAM AUTHORIZED.— 

17 ‘‘(1) IN GENERAL.—From amounts appro18 priated under subsection (j), the Secretary shall 

19 award grants, on a competitive basis, to States to 

20 enable the States to carry out the activities de21 scribed in subsections (e) and (f) in order to support 

22 efforts at institutions of higher education, or within 

23 systems of higher education, to increase degree at24 tainment. 

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1 ‘‘(2) PARTNERSHIPS ALLOWED.—A State may 

2 apply for a grant under this section in partnership 

3 with a nonprofit organization. In any such partner4 ship, the State higher education agency or other 

5 State agency described in subsection (c)(1) shall 

6 serve as the fiscal agent for purposes of the grant. 

7 ‘‘(3) DURATION.—Grants awarded under this 

8 section shall be for a period of 3 years. 

9 ‘‘(c) SUBMISSION AND CONTENTS OF APPLICA10 TION.— 

11 ‘‘(1) IN GENERAL.—The State, acting through 

12 the State higher education agency or other State 

13 agency determined appropriate by the Governor or 

14 chief executive officer of the State, shall submit an 

15 application to the Secretary at such time, in such 

16 manner, and containing such information as the Sec17 retary may require. 

18 ‘‘(2) CONTENTS.—An application submitted 

19 under paragraph (1) shall include the following: 

20 ‘‘(A) A description of the State’s capacity 

21 to administer the grant under this section and 

22 report annually to the Secretary on the 

23 progress of the activities and services described 

24 in subsection (e). 

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1 ‘‘(B) A description of how the State will 

2 meet the purpose of the grant program under 

3 this part through outreach and memoranda of 

4 understanding with institutions of higher edu5 cation, including the State’s plan for using 

6 grant funds to meet the requirements of sub7 sections (e) and (g) and, if the State elects to 

8 use grant funds under such subsection to create 

9 strong articulation agreements, subsection 

10 (f)(2). 

11 ‘‘(C) A description of how the State will 

12 coordinate with appropriate stakeholders, in13 cluding institutions of higher education, data14 sharing agencies within the State, and other 

15 States. 

16 ‘‘(D) A description of— 

17 ‘‘(i) the structure that the State has 

18 in place to administer the activities and 

19 services described in subsection (e), includ20 ing— 

21 ‘‘(I) the capacity of the State’s 

22 longitudinal data system to— 

23 ‘‘(aa) be clean of record du24 plication and ensure alignment of 

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1 State and institutional credit 

2 completion records; 

3 ‘‘(bb) include transfer flags 

4 and course and credit data to 

5 allow the State to run initial de6 gree audits for institutions; 

7 ‘‘(cc) include all postsec8 ondary educational institutions in 

9 the State, including public, pri10 vate nonprofit, and private for11 profit institutions; and 

12 ‘‘(dd) have in place mecha13 nisms to share data across insti14 tutions, systems, and States; 

15 ‘‘(II) the capacity of the agency 

16 governing the State’s longitudinal sys17 tem to respond to data requests accu18 rately and in a timely manner; and 

19 ‘‘(III) the State’s plan to protect 

20 student privacy with respect to data 

21 in the State longitudinal data system 

22 and comply with section 444 of the 

23 General Education Provisions Act 

24 (commonly referred to as the ‘Family 

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1 Educational Rights and Privacy Act 

2 of 1974’); or 

3 ‘‘(ii) the State’s plan to develop the 

4 structure described in clause (i) as part of 

5 the activities carried out under the grant. 

6 ‘‘(d) AWARD BASIS AND PRIORITY.—The Secretary 

7 shall award grants under this section to States based on 

8 the quality of the applications submitted under subsection 

9 (c). In awarding grants under this section, the Secretary 

10 shall give priority to applications from States— 

11 ‘‘(1) that do not have, as of the time of the ap12 plication, statewide policies or statewide initiatives in 

13 place to retroactively award associate’s degrees to 

14 students; or 

15 ‘‘(2) that have a commitment to initiatives re16 garding the retroactive awarding of associate’s de17 grees that will continue after the period of the grant. 

18 ‘‘(e) MANDATORY USE OF FUNDS.— 

19 ‘‘(1) SUBGRANTS.—A State that receives a 

20 grant under this section shall use not less than 80 

21 percent of the grant funds provided to award sub22 grants, on a competitive basis, to institutions of 

23 higher education or systems of higher education. 

24 Each institution or system receiving a subgrant shall 

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1 carry out all of the following activities and services, 

2 pursuant to the conditions under subsection (g): 

3 ‘‘(A) Identify the group of current and 

4 former students at the institution of higher 

5 education or system of higher education that, 

6 based on the data held by the institution, meet 

7 both of the following requirements: 

8 ‘‘(i) Each individual has earned not 

9 less than 60 postsecondary credit hours (or 

10 the minimum required by the State to earn 

11 an associate’s degree) at the institution of 

12 higher education or at an institution within 

13 the system of higher education. 

14 ‘‘(ii) Each individual has not had any 

15 postsecondary degree, of any kind, issued 

16 to the student by the institution of higher 

17 education. 

18 ‘‘(B) Identify a subset of the current and 

19 former students described in subparagraph (A) 

20 who have not already earned an associate’s or 

21 baccalaureate degree elsewhere. 

22 ‘‘(C) Perform a degree audit on each stu23 dent in the subset described in subparagraph 

24 (B), and identify each such student as one of 

25 the following: 

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1 ‘‘(i) Eligible to obtain an associate’s 

2 degree. 

3 ‘‘(ii) Eligible to obtain an associate’s 

4 degree upon the completion of 12 or fewer 

5 postsecondary credit hours (or the equiva6 lent). 

7 ‘‘(iii) Not eligible under either clause 

8 (i) or (ii). 

9 ‘‘(D) Provide outreach to each student 

10 identified in subparagraph (C)(i), and award 

11 the earned associate’s degree to such student, 

12 unless such student declines through a written 

13 or oral declaration. 

14 ‘‘(E) Provide outreach to each student 

15 identified in subparagraph (C)(ii) that includes 

16 information regarding next steps toward degree 

17 attainment, including financial aid options. 

18 ‘‘(2) APPLICATION PROCESS.—An institution of 

19 higher education or a system of higher education de20 siring a subgrant under this subsection shall submit 

21 an application to the State at such time, in such 

22 manner, and containing such information as the 

23 State may require. Such application shall include a 

24 written commitment from the institution or system 

25 of higher education that, upon receipt of a grant, 

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1 the institution or system of higher education will 

2 carry out all of the activities described in paragraph 

3 (1). 

4 ‘‘(3) PRIORITY.—Each State awarding sub5 grants under this part shall give priority to applica6 tions from institutions of higher education or sys7 tems of higher education that— 

8 ‘‘(A) use an opt-out, rather than an opt-in, 

9 policy to award associate’s degrees, if such pol10 icy is permissible under applicable accreditation 

11 or State standards; 

12 ‘‘(B) waive nonacademic barriers to grad13 uation, such as swimming tests, library fines, 

14 graduation fees, or parking tickets; 

15 ‘‘(C) waive or amend residency and recency 

16 requirements to prevent earned credits from ex17 piring, if such action is permissible under ac18 creditation or State standards; and 

19 ‘‘(D) commit to, following the conclusion of 

20 the activities described in paragraph (1) and 

21 continuing after the end of the grant period— 

22 ‘‘(i) conducting degree audits for each 

23 enrolled student once the student earns 45 

24 credits; and 

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1 ‘‘(ii) provide information about grad2 uation deadlines to remind students of rel3 evant requirements at least 4 months be4 fore the students graduate and again 1 

5 month before graduation. 

6 ‘‘(f) PERMISSIVE USE OF FUNDS.—A State receiving 

7 a grant under this section may use— 

8 ‘‘(1) not more than 15 percent of the total 

9 amount received under this section for administra10 tive purposes relating to the grant under this sec11 tion, including technology needed to carry out the 

12 purposes of this part; and 

13 ‘‘(2) not more than 5 percent of the total 

14 amount received under this section to create strong 

15 articulation agreements between 2-year and 4-year 

16 institutions of higher education, in order to enhance 

17 collaboration and strengthen the transition pathways 

18 between such institutions for transfer students. 

19 ‘‘(g) SPECIAL CONDITIONS AND PROHIBITIONS.— 

20 ‘‘(1) AVAILABILITY TO STUDENTS.—A State, 

21 institution of higher education, or system of higher 

22 education receiving a grant or subgrant, as the case 

23 may be, under this section shall not charge any stu24 dent an additional fee or charge to participate in the 

25 activities or services supported under this section. 

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1 ‘‘(2) PROHIBITED USES.—A State, institution 

2 of higher education, or system of higher education 

3 receiving a grant or subgrant, as the case may be, 

4 under this section shall not use any grant or 

5 subgrant funds for tuition, fees, room and board, or 

6 any other purpose outside the goals of the grant. 

7 ‘‘(3) FERPA REQUIREMENTS.—Each State, in8 stitution of higher education, or system of higher 

9 education receiving a grant or subgrant, as the case 

10 may be, under this section that enters into a con11 tract or other agreement with any outside entity to 

12 assist in carrying out the activities or services under 

13 such grant or subgrant, shall ensure that the outside 

14 entity complies with all requirements of section 444 

15 of the General Education Provisions Act (commonly 

16 referred to as the ‘Family Educational Rights and 

17 Privacy Act of 1974’) that would apply to the State, 

18 institution, or system. 

19 ‘‘(4) COORDINATION.—A State receiving a 

20 grant under this section shall ensure the coordina21 tion of the activities and services carried out under 

22 this section with any other activities carried out in 

23 the State that are similar to the goals of this pro24 gram, and with any other entities that support the 

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1 existing activities in the State, with the goal of mini2 mizing duplication. 

3 ‘‘(h) REPORT.— 

4 ‘‘(1) IN GENERAL.—A State receiving a grant 

5 under this section shall prepare and submit an an6 nual report to the Secretary on the activities and 

7 services carried out under this section, and on the 

8 implementation of such activities and services. The 

9 report shall include, for each institution of higher 

10 education or system of higher education receiving a 

11 subgrant, the following information: 

12 ‘‘(A) The number of students who were 

13 first identified in the group described in sub14 section (e)(1)(A). 

15 ‘‘(B) The number of students who were re16 moved from such group because the students 

17 had received a degree elsewhere, in accordance 

18 with subsection (e)(1)(B). 

19 ‘‘(C) The number of degree audits per20 formed under subsection (e)(1)(C). 

21 ‘‘(D) The number of students identified 

22 under subsection (e)(1)(C)(i) as eligible to ob23 tain an associate’s degree. 

24 ‘‘(E) The number of students identified 

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1 tain an associate’s degree upon the completion 

2 of 12 or fewer postsecondary credit hours (or 

3 the equivalent). 

4 ‘‘(F) The number of students identified 

5 under subsection (e)(1)(C)(iii) as ineligible to 

6 obtain an associate’s degree and ineligible to 

7 obtain such a degree upon the completion of 12 

8 or fewer postsecondary credit hours (or the 

9 equivalent). 

10 ‘‘(G) The number of students awarded an 

11 associate’s degree under subsection (e)(1)(D). 

12 ‘‘(H) The number of students identified in 

13 subsection (e)(1)(C)(ii) who are returning to an 

14 institution of higher education after receiving 

15 outreach described in subsection (e)(1)(E). 

16 ‘‘(I) The average amount of credit hours 

17 previously earned by students described in sub18 section (e)(1)(C)(i) when the associate’s degrees 

19 are awarded. 

20 ‘‘(J) The number of students who received 

21 outreach described in subsection (e)(1)(D) and 

22 who decline to receive the associate’s degree. 

23 ‘‘(K) The number of students who could 

24 not be located or reached as part of the process. 

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1 ‘‘(L) The reasons why students identified 

2 in subsection (e)(1)(C)(ii) did not return to an 

3 institution of higher education to receive a de4 gree. 

5 ‘‘(M) Details of any policy changes imple6 mented as a result of implementing the activi7 ties and services and conducting the required 

8 degree audits. 

9 ‘‘(2) DISAGGREGATION.—The report shall in10 clude the information described in subparagraphs 

11 (A) through (L) of paragraph (1) in the aggregate 

12 and disaggregated by age, gender, race or ethnicity, 

13 status as an individual with a disability, and socio14 economic status (including status as a Federal Pell 

15 Grant recipient). 

16 ‘‘(i) ENFORCEMENT PROVISIONS.— 

17 ‘‘(1) RECOVERY OR WITHHOLDING.—The Sec18 retary may, after notice and an opportunity for a 

19 hearing in accordance with chapter 5 of title 5, 

20 United States Code— 

21 ‘‘(A) withhold funds provided under a 

22 grant or subgrant under this section if a State 

23 system of higher education or an institution of 

24 higher education is failing to comply substan25 tially with the requirements of this section; or 

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1 ‘‘(B) take actions to recover funds pro2 vided under a grant or subgrant under this sec3 tion, if the State system of higher education or 

4 an institution of higher education made an un5 allowable expense, or otherwise failed to dis6 charge its responsibility to properly account for 

7 funds. 

8 ‘‘(2) USE OF RECOVERED OR UNUSED

9 FUNDS.—Any funds recovered or withheld under 

10 paragraph (1) shall— 

11 ‘‘(A) be credited to the appropriations ac12 count from which amounts are available to 

13 make grants or enter cooperative agreements 

14 under this section; and 

15 ‘‘(B) remain available until expended for 

16 any purpose of that account authorized by law 

17 that relates to the program under this section. 

18 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated to carry out this section 

20 such sums as may be necessary for fiscal year 2015 and 

21 each of the 2 succeeding fiscal years.’’. 

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1 SEC. 707. AUTHORIZATION OF APPROPRIATIONS FOR DEM2 ONSTRATION PROJECTS TO SUPPORT POST3 SECONDARY FACULTY, STAFF, AND ADMINIS4 TRATORS IN EDUCATING STUDENTS WITH 

5 DISABILITIES. 

6 Section 765 (20 U.S.C. 1140e) is amended by strik7 ing ‘‘2009’’ and inserting ‘‘2015’’. 

8 SEC. 708. AUTHORIZATION OF APPROPRIATIONS FOR TRAN9 SITION PROGRAMS FOR STUDENTS WITH IN10 TELLECTUAL DISABILITIES. 

11 Section 769 (20 U.S.C. 1140i) is amended by striking 

12 ‘‘2009’’ and inserting ‘‘2015’’. 

13 SEC. 709. AUTHORIZATION OF APPROPRIATIONS FOR THE 

14 COMMISSION ON ACCESSIBLE MATERIALS 

15 AND PROGRAMS TO SUPPORT IMPROVED AC16 CESS TO MATERIALS. 

17 Section 775 (20 U.S.C. 1140o) is amended by strik18 ing ‘‘2009’’ and inserting ‘‘2015’’. 

19 SEC. 710. AUTHORIZATION OF APPROPRIATIONS FOR THE 

20 NATIONAL TECHNICAL ASSISTANCE CENTER; 

21 COORDINATING CENTER. 

22 Section 778 (20 U.S.C. 1140r) is amended by strik23 ing ‘‘2009’’ and inserting ‘‘2015’’. 

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1 SEC. 711. FIRST IN THE WORLD COMPETITIVE GRANT PRO2 GRAM. 

3 Title VII (20 U.S.C. 1133 et seq.) is amended by 

4 adding at the end the following: 

5 ‘‘PART F—FIRST IN THE WORLD COMPETITIVE 

6 GRANT PROGRAM 

7 ‘‘SEC. 783. PURPOSE. 

8 ‘‘The purpose of this part is— 

9 ‘‘(1) to help institutions of higher education im10 plement innovative strategies and practices shown to 

11 be effective in improving educational outcomes and 

12 making postsecondary education more affordable for 

13 students and families; 

14 ‘‘(2) to raise the percentage of individuals in 

15 the United States who have a degree from an insti16 tution of higher education or another postsecondary 

17 credential by 2020; and 

18 ‘‘(3) to develop an evidence base of effective 

19 practices for ensuring that more students can ac20 cess, persist in, and complete postsecondary edu21 cation. 

22 ‘‘SEC. 784. PROGRAM AUTHORIZED. 

23 ‘‘(a) ELIGIBLE ENTITY DEFINED.—In this part ‘eli24 gible entity’ means— 

25 ‘‘(1) a nonprofit institution of higher education; 

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1 ‘‘(2) a consortium of nonprofit institutions of 

2 higher education; or 

3 ‘‘(3) a nonprofit institution described in para4 graph (1), or a consortium described in paragraph 

5 (2), in partnership with 1 or more public or private 

6 organizations. 

7 ‘‘(b) PROGRAM AUTHORIZED.—From amounts ap8 propriated under section 791, the Secretary shall award 

9 grants, on a competitive basis and in accordance with sub10 section (d), to eligible entities to enable such eligible enti11 ties to support the activities described in section 786. 

12 ‘‘(c) DURATION OF GRANTS.—Grants awarded under 

13 this part shall be for a period of not more than 5 years. 

14 ‘‘(d) LIMITATION.—An eligible entity shall not be 

15 awarded more than 1 grant for each grant competition. 

16 ‘‘SEC. 785. APPLICATION; STANDARDS OF EVIDENCE; PRI17 ORITY. 

18 ‘‘(a) APPLICATION.—Each eligible entity that desires 

19 to receive a grant under this part shall submit an applica20 tion to the Secretary at such time, in such manner, and 

21 containing such information as the Secretary may reason22 ably require, including, at a minimum— 

23 ‘‘(1) a description of— 

24 ‘‘(A) the project for which the eligible enti25 ty is seeking a grant and how the evidence supmstockstill on DSK4VPTVN1PROD with BILLS

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1 porting that project meets the standards of evi2 dence established by the Secretary under sub3 section (b); 

4 ‘‘(B) the student population to be served 

5 and how the proposed project will meet the 

6 needs of those students; 

7 ‘‘(C) the resources and capacity of the eli8 gible entity to carry out the proposed project; 

9 ‘‘(D) the replicable and scalable reform 

10 strategies the eligible entity will implement; 

11 ‘‘(E) the eligible entity’s plan for con12 tinuing the proposed project after the eligible 

13 entity no longer receives funding under this 

14 part; 

15 ‘‘(F) the eligible entity’s plans for inde16 pendently evaluating the effectiveness of activi17 ties carried out under the grant, including eval18 uating whether the strategies that the eligible 

19 entity implements are showing evidence of effec20 tiveness; and 

21 ‘‘(G) the eligible entity’s data collection 

22 plan; 

23 ‘‘(2) an estimate of the number of students that 

24 the eligible entity plans to serve under the proposed 

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1 project, including the percentage of those students 

2 who are from low-income families; 

3 ‘‘(3) an assurance that the eligible entity will— 

4 ‘‘(A) cooperate with evaluations, as re5 quested by the Secretary; and 

6 ‘‘(B) make data available to third parties 

7 for validation and further study; and 

8 ‘‘(4) if applicable, a description of the partner9 ship the eligible entity has established with 1 or 

10 more public or private organizations for the purpose 

11 of carrying out activities under the grant. 

12 ‘‘(b) STANDARDS OF EVIDENCE.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall estab14 lish standards for the quality of evidence that an ap15 plicant shall provide in accordance with subsection 

16 (a)(1)(A) in order to demonstrate that the project 

17 the applicant proposes to carry out with the funds 

18 under this part is likely to succeed in improving stu19 dent outcomes according to the performance meas20 ures described in section 787. These standards shall 

21 include the following: 

22 ‘‘(A) Strong evidence that the activities 

23 proposed by the applicant will have a statis24 tically significant effect on student outcomes, 

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1 secondary persistence rates, and postsecondary 

2 completion rates. 

3 ‘‘(B) Moderate evidence that the activities 

4 proposed by the applicant will improve such 

5 student outcomes. 

6 ‘‘(C) A rationale based on research find7 ings or a reasonable hypothesis that the activi8 ties proposed by the applicant will improve such 

9 student outcomes. 

10 ‘‘(2) SUPPORT FOR NEW STANDARDS.—Subject 

11 to paragraph (3), the Secretary shall ensure that not 

12 less than one-half of the funds awarded under this 

13 part are awarded for projects that— 

14 ‘‘(A) meet a standard of evidence described 

15 in subparagraph (B) or (C) of paragraph (1); 

16 and 

17 ‘‘(B) do not meet the evidence standard 

18 described in subparagraph (A) of such para19 graph. 

20 ‘‘(3) EXCEPTION.—The Secretary shall not be 

21 required to meet the requirement described in para22 graph (2) unless a sufficient number of otherwise 

23 high quality applications are received. 

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1 ‘‘(c) PRIORITY.—In awarding grants under this part, 

2 the Secretary shall give priority to applicants that plan 

3 to— 

4 ‘‘(1) implement interventions that result in 

5 measurable increases in the number of low-income 

6 students who— 

7 ‘‘(A) enroll and persist in postsecondary 

8 education; and 

9 ‘‘(B) complete a postsecondary degree or 

10 certificate; 

11 ‘‘(2) implement a systemwide design that would 

12 have positive effects on low-income students; 

13 ‘‘(3) increase successful transfers of low-income 

14 students into higher level programs, such as from a 

15 certificate program to an associate’s degree program 

16 or from an associate’s degree program to a bach17 elor’s degree program; 

18 ‘‘(4) increase enrollment and completion rates 

19 for degrees or certificates in the fields of science, 

20 technology, engineering, and mathematics for stu21 dents from groups that are historically underrep22 resented in those fields, including minorities and 

23 women, by implementing new and substantially dif24 ferent strategies; 

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1 ‘‘(5) design and implement new and innovative 

2 approaches to reduce the time it takes for students 

3 to complete a program of study and earn a postsec4 ondary degree or certificate; 

5 ‘‘(6) design and implement new and innovative 

6 strategies to contain the cost of education for stu7 dents and families pursuing higher education; and 

8 ‘‘(7) develop cross-system partnerships among 

9 workforce, adult education, career and technical edu10 cation, postsecondary education, human service 

11 agencies, and others. 

12 ‘‘SEC. 786. USES OF FUNDS. 

13 ‘‘Each eligible entity that receives funds under this 

14 part shall use such funds to carry out 1 or more of the 

15 following activities: 

16 ‘‘(1) Designing innovative approaches to teach17 ing and learning that are designed to produce better 

18 outcomes for postsecondary students. 

19 ‘‘(2) Implementing promising practices that ac20 celerate the pace and success rate at which students 

21 who need remedial coursework move into credit-bear22 ing coursework and toward a degree or certificate. 

23 ‘‘(3) Establishing open postsecondary degree 

24 pathways that— 

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1 ‘‘(A) are offered to students at low cost or 

2 no cost; 

3 ‘‘(B) are offered in fields that focus on the 

4 education and skills employers are seeking; and 

5 ‘‘(C) have the potential to deliver high 

6 quality learning experiences and outcomes. 

7 ‘‘(4) Redesigning courses and programs of 

8 study that improve student learning at lower costs 

9 than traditional courses. 

10 ‘‘(5) Developing innovative student services ap11 proaches that address financial barriers to college 

12 completion, such as access to comprehensive finan13 cial supports (including tax credits and Federal, 

14 State, and local benefits programs), financial lit15 eracy, workforce development, and legal services. 

16 ‘‘(6) Any other innovative program or strategy 

17 approved by the Secretary. 

18 ‘‘SEC. 787. PERFORMANCE MEASURES. 

19 ‘‘(a) ESTABLISHMENT OF PERFORMANCE MEAS20 URES.—The Secretary shall establish performance meas21 ures for the programs and activities carried out under this 

22 part. These measures, at a minimum, shall track the 

23 grantee’s progress in improving postsecondary education 

24 access, affordability, and completion— 

25 ‘‘(1) for all students served by the grantee; and 

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1 ‘‘(2) for students served by the grantee, 

2 disaggregated on the basis of race and ethnicity, 

3 gender, and status as a recipient of a Federal Pell 

4 Grant. 

5 ‘‘(b) PERFORMANCE MEASURES INCLUDED.—The 

6 performance measures described in subsection (a) shall in7 clude the following: 

8 ‘‘(1) Postsecondary enrollment rates. 

9 ‘‘(2) Persistence from semester to semester and 

10 year to year. 

11 ‘‘(3) On-time graduation rates. 

12 ‘‘(4) Any other indicator determined by the Sec13 retary or grantee. 

14 ‘‘SEC. 788. REPORTING REQUIREMENT. 

15 ‘‘Each eligible entity that receives a grant under this 

16 part shall submit to the Secretary, at such time and in 

17 such manner as the Secretary may require, an annual re18 port that includes— 

19 ‘‘(1) information about the eligible entity’s 

20 progress as measured by the performance measures 

21 established under section 787; 

22 ‘‘(2) data relating to such performance meas23 ures; 

24 ‘‘(3) the evaluation required in accordance with 

25 section 785(a)(1)(F); and 

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1 ‘‘(4) any additional information that the Sec2 retary may require. 

3 ‘‘SEC. 789. EVALUATION. 

4 ‘‘The Secretary shall— 

5 ‘‘(1) acting through the Director of the Insti6 tute of Education Sciences, evaluate the implementa7 tion and impact of activities supported under this 

8 part; and 

9 ‘‘(2) disseminate research on best practices re10 lating to those activities. 

11 ‘‘SEC. 790. SUPPLEMENT, NOT SUPPLANT. 

12 ‘‘Funds made available under this part shall be used 

13 to supplement, and not supplant, other Federal, State, 

14 and local funds that would otherwise be expended to carry 

15 out activities under this section. 

16 ‘‘SEC. 791. AUTHORIZATION OF APPROPRIATIONS. 

17 ‘‘There are authorized to be appropriated to carry out 

18 this part such sums as may be necessary for fiscal year 

19 2015 and each of the 4 succeeding fiscal years.’’. 

20 SEC. 712. DUAL ENROLLMENT AND EARLY COLLEGE HIGH 

21 SCHOOL PROGRAMS. 

22 Title VII (20 U.S.C. 1134 et seq.), as amended by 

23 section 711, is further amended by adding at the end the 

24 following: 

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1 ‘‘PART G—DUAL ENROLLMENT AND EARLY 

2 COLLEGE HIGH SCHOOL PROGRAMS 

3 ‘‘SEC. 793. DUAL ENROLLMENT PROGRAMS AND EARLY 

4 COLLEGE HIGH SCHOOL PROGRAMS. 

5 ‘‘(a) PURPOSE.—The purpose of this section is to 

6 help expand access to, and improve the quality of, dual 

7 enrollment programs and early college high school pro8 grams. 

9 ‘‘(b) DEFINITIONS.—In this section: 

10 ‘‘(1) APPLIED LEARNING.—The term ‘applied 

11 learning’ means a strategy that— 

12 ‘‘(A) engages students in opportunities to 

13 apply rigorous academic content aligned with 

14 postsecondary-level expectations to real world 

15 experience, through such means as work experi16 ence, work-based learning, problem-based learn17 ing, or service-learning; and 

18 ‘‘(B) develops students’ cognitive com19 petencies and pertinent employability skills. 

20 ‘‘(2) DUAL ENROLLMENT PROGRAM.—The term 

21 ‘dual enrollment program’ means a program of study 

22 provided by an institution of higher education 

23 through which a student who has not graduated 

24 from secondary school with a regular high school di25 ploma is able to earn secondary school credit and 

26 transferable postsecondary credit that is accepted as 

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1 credit towards a postsecondary degree or certificate 

2 at no cost to the participant or the participant’s 

3 family. A dual enrollment program shall consist of 

4 not less than 2 postsecondary credit-bearing courses 

5 and support and academic services that help a stu6 dent persist and complete such courses. 

7 ‘‘(3) EARLY COLLEGE HIGH SCHOOL PRO8 GRAM.—The term ‘early college high school pro9 gram’ means a formal partnership between at least 

10 1 local educational agency and at least 1 institution 

11 of higher education that allows students to simulta12 neously complete, as part of an organized course of 

13 study, requirements towards earning a regular high 

14 school diploma and earning not less than 12 trans15 ferable postsecondary credits that are accepted as 

16 credit towards a postsecondary degree or certificate 

17 at no cost to the participant or the participant’s 

18 family. 

19 ‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible en20 tity’ means a partnership that— 

21 ‘‘(A) shall include— 

22 ‘‘(i) a high-need local educational 

23 agency or a high-need high school; and 

24 ‘‘(ii) an institution of higher education 

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1 need local educational agency or high-need 

2 school; and 

3 ‘‘(B) may include— 

4 ‘‘(i) a consortium of entities described 

5 in clauses (i) and (ii) of subparagraph (A); 

6 and 

7 ‘‘(ii) a nonprofit or community-based 

8 organization with demonstrated expertise 

9 in serving low-income students and tradi10 tionally underrepresented students. 

11 ‘‘(5) FOSTER CARE YOUTH.—The term ‘foster 

12 care youth’ means— 

13 ‘‘(A) youth whose care and placement is 

14 the responsibility of the State or Tribal agency 

15 that administers a State plan under part B or 

16 E of title IV of the Social Security Act (42 

17 U.S.C. 621 et seq. and 670 et seq.), without re18 gard to whether foster care maintenance pay19 ments are made under section 472 of such Act 

20 (42 U.S.C. 672) on behalf of the child; and 

21 ‘‘(B) includes individuals whose care and 

22 placement was the responsibility of the State or 

23 Tribal agency that administers a State plan 

24 under part B or E of title IV of the Social Se25 curity Act (42 U.S.C. 621 et seq. and 670 et 

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1 seq.) when they were age 13 or older but who 

2 are no longer the under the care of the State 

3 or Tribal agency. 

4 ‘‘(6) HIGH-NEED LOCAL EDUCATIONAL AGEN5 CY.—The term ‘high-need local educational agency’ 

6 means a local educational agency— 

7 ‘‘(A) that serves not fewer than 10,000 

8 children from families with incomes below the 

9 poverty line; 

10 ‘‘(B) for which not less than 20 percent of 

11 the children served by the agency are from fam12 ilies with incomes below the poverty line; or 

13 ‘‘(C) that is in the highest quartile of local 

14 educational agencies in the State, based on stu15 dent poverty. 

16 ‘‘(7) HIGH-NEED HIGH SCHOOL.—The term 

17 ‘high-need high school’ means a secondary school 

18 that serves students not less than 50 percent of 

19 whom are either low-income students or traditionally 

20 underrepresented students. 

21 ‘‘(8) HIGH SCHOOL GRADUATION RATE.—The 

22 term ‘high school graduation rate’ means the term 

23 ‘four-year adjusted cohort graduation rate’ in section 

24 200.19(b)(1)(i)(A) of title 34, Code of Federal Reg25 ulations, as such section was in effect on November 

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1 28, 2008, and the ‘extended-year adjusted cohort 

2 graduation rate’ as defined in section 

3 200.19(b)(1)(v)(A) of title 34, Code of Federal Reg4 ulations, as such section was in effect on November 

5 28, 2008. 

6 ‘‘(9) INSTITUTION OF HIGHER EDUCATION.— 

7 The term ‘institution of higher education’ has the 

8 meaning given the term in section 101. 

9 ‘‘(10) LOW-INCOME STUDENT.—The term ‘low10 income student’ means a student who— 

11 ‘‘(A) is eligible for a free or reduced priced 

12 lunch under the Richard B. Russell National 

13 School Lunch Act; 

14 ‘‘(B) is eligible for, or is a member of a 

15 family eligible for, means tested benefits or 

16 public assistance at the Federal, State, or local 

17 level; or 

18 ‘‘(C) lives in a high-poverty area or attends 

19 a secondary school that serves students in a 

20 high-poverty area. 

21 ‘‘(11) PERSONALIZED GRADUATION AND COL22 LEGE PLAN.—The term ‘personalized graduation 

23 and college plan’ means a personalized document 

24 that is developed in collaboration with a student, the 

25 student’s family, and school personnel, is updated at 

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1 least annually, is informed by labor market informa2 tion, and does the following: 

3 ‘‘(A) Sets postsecondary education and ca4 reer goals. 

5 ‘‘(B) Develops a course-taking schedule to 

6 meet graduation requirements. 

7 ‘‘(C) As appropriate, outlines academic 

8 and non-academic supports that are needed to 

9 successfully achieve goals and graduate college 

10 and career ready. 

11 ‘‘(D) Allows the student and family to 

12 track progress toward goals and graduation re13 quirements. 

14 ‘‘(12) REGULAR HIGH SCHOOL DIPLOMA.—The 

15 term ‘regular high school diploma’ means the stand16 ard secondary school diploma that is awarded to stu17 dents in the State and that is fully aligned with the 

18 State’s academic content standards or a higher di19 ploma and does not include an alternative credential, 

20 certificate of attendance, or any alternative award. 

21 ‘‘(13) TRADITIONALLY UNDERREPRESENTED

22 STUDENT.—The term ‘traditionally underrep23 resented student’ means a student who— 

24 ‘‘(A)(i) is a low-income student; and 

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1 ‘‘(ii)(I) is a first generation college stu2 dent, as defined in section 402A(h); 

3 ‘‘(II) has a dependent; 

4 ‘‘(III) is employed for not less than 25 

5 hours a week; or 

6 ‘‘(IV) left secondary school without a reg7 ular high school diploma or its equivalent; 

8 ‘‘(B) is or has been a homeless child or 

9 youth, as defined in section 725 of the McKin10 ney-Vento Homeless Assistance Act (42 U.S.C. 

11 11434a); 

12 ‘‘(C) is a foster care youth; 

13 ‘‘(D) is an individual with a disability, as 

14 defined in section 3 of the Americans with Dis15 abilities Act of 1990 (42 U.S.C. 12102); 

16 ‘‘(E) is a child with a disability, as defined 

17 in section 602 of the Individuals with Disabil18 ities Education Act; or 

19 ‘‘(F) has been adjudicated in the juvenile 

20 or criminal justice system. 

21 ‘‘(c) PROGRAM AUTHORIZED.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall make 

23 grants, from allotments determined under paragraph 

24 (3), to States to enable the States to award submstockstill on DSK4VPTVN1PROD with BILLS

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1 grants to eligible entities to support dual enrollment 

2 programs and early college high school programs. 

3 ‘‘(2) RESERVATIONS.— 

4 ‘‘(A) TECHNICAL ASSISTANCE.—The Sec5 retary shall reserve not more than 5 percent of 

6 the total amount appropriated to carry out this 

7 section for each fiscal year to provide technical 

8 assistance to States and eligible entities award9 ed grants and subgrants under this section and 

10 to evaluate the grant program established under 

11 this section. 

12 ‘‘(B) BIE AND OUTLYING AREAS.—The 

13 Secretary shall reserve 1 percent of the total 

14 amount appropriated to carry out this section 

15 for each fiscal year for the Secretary of the In16 terior for programs under this section in 

17 schools operated or funded by the Bureau of In18 dian Education and for outlying areas (as de19 fined under the Elementary and Secondary 

20 Education Act of 1965). 

21 ‘‘(C) LIMITATION.—Funds allotted for the 

22 Commonwealth of Puerto Rico shall not exceed 

23 0.5 percent of the total amount available to 

24 States to carry out this section. 

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1 ‘‘(3) DETERMINATION OF ALLOTMENT.—From 

2 the total amount appropriated to carry out this sec3 tion for a fiscal year and not reserved under para4 graph (2) and except as provided in paragraph (4), 

5 the Secretary shall allot to each State the sum of— 

6 ‘‘(A) an amount that bears the same rela7 tionship to 65 percent of such total amount 

8 minus the reserved amount as the number of 

9 low-income students in grades 9 through 12 in 

10 the State, as determined by the Secretary on 

11 the basis of the most recent satisfactory data, 

12 bears to the number of such students in all 

13 States, as so determined; and 

14 ‘‘(B) an amount that bears the same rela15 tionship to 35 percent of such total amount 

16 minus the reserved amount as the number of 

17 students in grades 9 through 12 in the State, 

18 as determined by the Secretary on the basis of 

19 the most recent satisfactory data, bears to the 

20 number of such students in all States, as so de21 termined. 

22 ‘‘(4) MINIMUM ALLOTMENT.—The allotment for 

23 each State under paragraph (3) for a fiscal year 

24 shall be an amount that is not less than 0.5 percent 

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1 of the total amount available to States for such fis2 cal year to carry out this section. 

3 ‘‘(5) SUBGRANT DURATION.—A subgrant 

4 awarded under this section shall be for a 5-year pe5 riod. 

6 ‘‘(d) APPLICATIONS.— 

7 ‘‘(1) IN GENERAL.—A State that desires to re8 ceive a grant under this section shall submit an ap9 plication to the Secretary at such time, in such man10 ner, and accompanied by such information as the 

11 Secretary may require. 

12 ‘‘(2) CONTENTS.—Each application submitted 

13 under paragraph (1) shall include the following: 

14 ‘‘(A) A description of a comprehensive 

15 statewide plan for improving access to dual en16 rollment programs and early college high school 

17 programs, improving the completion rates and 

18 quality of such programs, and the level of post19 secondary credit earned by participants in such 

20 programs among low-income students and tra21 ditionally underrepresented students. 

22 ‘‘(B) A coherent strategy for using grant 

23 funds provided under this section with other 

24 Federal, State, and local funds to— 

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1 ‘‘(i) increase access to dual enrollment 

2 programs and early college high school 

3 programs among low-income students and 

4 traditionally underrepresented students; 

5 ‘‘(ii) increase completion rates of dual 

6 enrollment programs and early college high 

7 school programs among low-income stu8 dents and traditionally underrepresented 

9 students; 

10 ‘‘(iii) implement appropriate sec11 ondary and postsecondary supports for 

12 low-income students and traditionally 

13 underrepresented students; and 

14 ‘‘(iv) continuously improve the quality 

15 of such programs. 

16 ‘‘(C) Evidence of collaboration among the 

17 State, the State educational agency, local edu18 cational agencies in the State, teachers, institu19 tions of higher education in the State, work20 force development partners, and other stake21 holders in developing and implementing the 

22 plan under subparagraph (A). 

23 ‘‘(D) How the State and eligible entities 

24 receiving subgrants under this section will re25 cruit low-income students and traditionally 

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1 underrepresented students to participate in dual 

2 enrollment programs and early college high 

3 school programs funded under the grant. 

4 ‘‘(E) An assurance that the State and eli5 gible entities receiving subgrants under this sec6 tion will track and report the performance 

7 measures described in subsection (g). 

8 ‘‘(F) Documentation of the record of the 

9 State, or eligible entity, as applicable, in areas 

10 to be measured by the performance measures 

11 under subsection (g). 

12 ‘‘(G) An assurance that the State has 

13 taken and will take steps to eliminate statutory, 

14 regulatory, procedural, or other barriers to fa15 cilitate the full implementation of the State’s 

16 plan under subparagraph (A). 

17 ‘‘(H) A description of how the State and 

18 eligible entities receiving subgrants under this 

19 section will sustain the activities proposed after 

20 the grant period ends. 

21 ‘‘(I) An assurance that the State will re22 quire each eligible entity, on behalf of a dual 

23 enrollment program or early college high school 

24 program that receives funds under a grant 

25 awarded under this section, to enter into an armstockstill on DSK4VPTVN1PROD with BILLS

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1 ticulation agreement with other public institu2 tions of higher education that are located in the 

3 State in which an institution of higher edu4 cation that is part of an eligible entity is lo5 cated. Such articulation agreements shall be de6 veloped in consultation with educators at insti7 tutions of higher education and secondary 

8 schools. Such articulation agreement shall guar9 antee— 

10 ‘‘(i) that students who earn postsec11 ondary credit as part of a dual enrollment 

12 program or early college high school pro13 gram will be able to transfer those credits 

14 to— 

15 ‘‘(I) any public institution of 

16 higher education in the State, and 

17 that such credits will count toward 

18 meeting specific degree or certificate 

19 requirements; and 

20 ‘‘(II) any private nonprofit insti21 tution of higher education that choos22 es to participate in an articulation 

23 agreement; 

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1 ‘‘(ii) that common course numbering 

2 is used to identify substantially similar 

3 courses; 

4 ‘‘(iii) that credits are recognized 

5 throughout the system of higher education 

6 in the State and count as credits earned 

7 for both a regular high school diploma and 

8 credit for a degree or certificate program 

9 at a public institution of higher education 

10 in the State and at any private nonprofit 

11 institution of higher education that chooses 

12 to participate; and 

13 ‘‘(iv) that if a student earns an associ14 ate’s degree as part of a dual enrollment 

15 program or early college program, that as16 sociate’s degree, awarded by the partici17 pating institution of higher education in 

18 the State, shall be fully acceptable in 

19 transfer and credited as the first 2 years 

20 of a related baccalaureate program at a 

21 public institution of higher education in 

22 such State. 

23 ‘‘(J) An assurance that the State will re24 quire all public institutions of higher education 

25 in the State to establish credit transfer policies 

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1 and articulation agreements with each other so 

2 that students can seamlessly transfer among 

3 such institutions of higher education and pri4 vate nonprofit institutions of higher education if 

5 such private nonprofit institutions of higher 

6 education choose to participate. 

7 ‘‘(K) A formal commitment from the insti8 tutions of higher education participating in the 

9 program that students will not be required to 

10 pay tuition and fees, room and board, or fees 

11 for books and materials for any courses in dual 

12 enrollment programs or early college high 

13 school programs. 

14 ‘‘(L) A plan to address the unique cir15 cumstances facing rural students and students 

16 with transportation barriers who wish to par17 ticipate in dual enrollment programs and early 

18 college high school programs, including difficul19 ties in providing such students with the oppor20 tunity to participate at campuses of institutions 

21 of higher education. 

22 ‘‘(M) An assurance that the State will de23 velop a plan to increase enrollment in, persist24 ence through, and completion of postsecondary 

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1 ditionally underrepresented students throughout 

2 the State through the use of dual enrollment 

3 programs and early college high school pro4 grams. 

5 ‘‘(N) An assurance that the State has en6 acted funding models that ensure that local 

7 educational agencies and institutions of higher 

8 education that participate in dual enrollment 

9 programs and early college high school pro10 grams do not lose per-pupil or full-time equiva11 lent funding for participating students. 

12 ‘‘(3) APPLICATIONS FOR SUBGRANTS.—An eli13 gible entity that desires to receive a subgrant under 

14 this section shall submit to a State an application at 

15 such time, in such manner, and accompanied by 

16 such information as the State may require, includ17 ing, at a minimum— 

18 ‘‘(A) a coherent strategy for using 

19 subgrant funds provided under this section with 

20 other Federal, State, and local funds to— 

21 ‘‘(i) increase access to dual enrollment 

22 programs and early college high school 

23 programs among low-income students and 

24 traditionally underrepresented students; 

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1 ‘‘(ii) increase completion rates of dual 

2 enrollment programs and early college high 

3 school programs among low-income stu4 dents and traditionally underrepresented 

5 students; and 

6 ‘‘(iii) continuously improve the quality 

7 of such programs; 

8 ‘‘(B) a description of how the eligible enti9 ty will conduct an outreach strategy to ensure 

10 that secondary school students, their families, 

11 young people who have dropped out of school, 

12 low-income students, traditionally underrep13 resented students, and community members are 

14 aware of early college high school programs and 

15 dual enrollment programs, which shall include 

16 information on— 

17 ‘‘(i) deadlines for enrolling in the 

18 early college high school program or dual 

19 enrollment program for the following 

20 school year; 

21 ‘‘(ii) the courses that will be available 

22 to students; 

23 ‘‘(iii) the secondary school and post24 secondary credit or credentials that can be 

25 earned from available courses; 

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1 ‘‘(iv) as appropriate, the similarities 

2 and differences between early college high 

3 school programs and dual enrollment pro4 grams; 

5 ‘‘(v) after the first year of implemen6 tation, achievement outcomes (such as 

7 number of course credits earned) of stu8 dents participating in the early college high 

9 school program or dual enrollment pro10 gram; and 

11 ‘‘(vi) as soon as practicable as deter12 mined by the Secretary, outcomes on the 

13 performance measures described under 

14 subsection (g) of students participating in 

15 the early college high school program or 

16 dual enrollment program; 

17 ‘‘(C) a description of the ongoing feedback 

18 process between the participating institutions of 

19 higher education and the participating local 

20 educational agencies, including— 

21 ‘‘(i) the provision of academic out22 come data, including the disaggregation of 

23 such data by student subgroups described 

24 in section 1111(b)(2)(C)(v)(II) of the Ele25 mentary and Secondary Education Act of 

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1 1965, from the institution to the local edu2 cational agency, on the remediation needs 

3 of incoming students; and 

4 ‘‘(ii) a description of how that infor5 mation is used by the local educational 

6 agency to strengthen instruction and re7 duce the need for postsecondary remedi8 ation; 

9 ‘‘(D) an assurance that instructors teach10 ing postsecondary courses in dual enrollment 

11 programs and early college high school pro12 grams meet the same standards for faculty es13 tablished at the participating institutions of 

14 higher education; 

15 ‘‘(E) a description of the academic and so16 cial support services that will be provided to 

17 participating students, including academic 

18 counseling and guidance on the financial aid 

19 process; 

20 ‘‘(F) an assurance that the eligible entity 

21 will establish polices that— 

22 ‘‘(i) maximize, to the extent prac23 ticable and taking into account the geog24 raphy of the region, the number of dual 

25 enrollment program and early college high 

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1 school program students on the campuses 

2 of institutions of higher education and in 

3 classrooms with postsecondary students, 

4 and dual enrollment program and early 

5 college high school program courses taught 

6 by professors of the institutions of higher 

7 education; and 

8 ‘‘(ii) in any case where providing 

9 courses of the dual enrollment program or 

10 early college high school program on a 

11 campus of an institution of higher edu12 cation is not practicable, ensure that each 

13 course of the dual enrollment program or 

14 early college high school program that is 

15 taught in secondary schools is— 

16 ‘‘(I) developed in collaboration 

17 with an institution of higher edu18 cation; 

19 ‘‘(II) fully comparable with the 

20 courses offered on the campus of the 

21 institution of higher education; 

22 ‘‘(III) augmented with campus 

23 experiences when reasonably achiev24 able; and 

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1 ‘‘(IV) taught by a faculty mem2 ber from the partner institution of 

3 higher education, where practicable, 

4 or, if not practicable, by an instructor 

5 who is selected, supervised, and evalu6 ated by the institution of higher edu7 cation; and 

8 ‘‘(G) an assurance that the eligible entity 

9 will provide access to a dual enrollment pro10 gram or early college high school program to all 

11 students, including low-income students and 

12 traditionally underrepresented students in the 

13 area or school. 

14 ‘‘(e) USES OF FUNDS.— 

15 ‘‘(1) REQUIRED STATE USES OF FUNDS.— 

16 ‘‘(A) IN GENERAL.—The State may re17 serve not more than 5 percent of the total 

18 amount allotted to carry out this section for 

19 each fiscal year to carry out the requirements 

20 of clauses (ii) through (vi) of subparagraph (B). 

21 The remaining amount shall be used to award 

22 subgrants to eligible entities in the State. 

23 ‘‘(B) STATE USES OF FUNDS.—A State 

24 that receives a grant under this section shall 

25 carry out the following: 

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1 ‘‘(i) Award subgrants to eligible enti2 ties to enable the entities to support dual 

3 enrollment programs and early college high 

4 school programs. 

5 ‘‘(ii) Design and implement a state6 wide strategy for dual enrollment programs 

7 and early college high school programs for 

8 low-income students and traditionally 

9 underrepresented students in higher edu10 cation to ensure such programs are offered 

11 free of charge to students. 

12 ‘‘(iii) Establish articulation agree13 ments and credit transfer policies. 

14 ‘‘(iv) Develop common college success 

15 courses for low-income students and tradi16 tionally underrepresented students enrolled 

17 in dual enrollment programs and early col18 lege high school programs. 

19 ‘‘(v) Collect data for program im20 provement and reporting of performance 

21 measures as described in subsection (g). 

22 ‘‘(vi) Provide technical assistance to 

23 dual enrollment programs and early college 

24 high school programs, which may include 

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1 profit organization with expertise in such 

2 programs. 

3 ‘‘(2) REQUIRED LOCAL USES OF FUNDS.—An 

4 eligible entity that receives a subgrant under this 

5 section shall carry out the following: 

6 ‘‘(A) Support dual enrollment programs 

7 and early college high school programs in the 

8 schools served by the high-need local edu9 cational agency. 

10 ‘‘(B) Develop a personalized graduation 

11 and college plan for each student participating 

12 in a dual enrollment program or early college 

13 high school program funded by the subgrant. 

14 ‘‘(C) Enter into the articulation agreement 

15 described in subsection (d)(2)(I). 

16 ‘‘(D) Carry out outreach programs to ele17 mentary school students, secondary school stu18 dents, low-income students, traditionally under19 represented students, youth who have dropped 

20 out of school, and their parents and families to 

21 ensure awareness of dual enrollment programs 

22 and early college high school programs and the 

23 ability to earn college credit while in secondary 

24 school and to reengage dropouts in school. Such 

25 programs may be carried out in partnership 

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1 with a nonprofit or community-based organiza2 tion. 

3 ‘‘(E) Provide academic and social support 

4 services to students, including counseling activi5 ties, tutoring, and postsecondary education 

6 readiness activities such as assistance with the 

7 Federal financial aid application process. 

8 ‘‘(F) Collect data for program improve9 ment and reporting of performance measures as 

10 described in subsection (g). 

11 ‘‘(G) Implement applied learning opportu12 nities. 

13 ‘‘(H) Develop coordinated activities be14 tween institutions of higher education and local 

15 educational agencies, including academic cal16 endars, provision of student services, and cur17 riculum development. 

18 ‘‘(I) Pay for tuition and fees, transpor19 tation, and fees for books and materials. 

20 ‘‘(J) Provide students with information 

21 about how the credits they earn through partici22 pating in dual enrollment programs and early 

23 college high school programs will be transferred 

24 to an institution of higher education. 

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1 ‘‘(3) PERMISSIVE USES OF FUNDS.—A State 

2 that receives a grant under this section or an eligible 

3 entity that receives a subgrant under this section 

4 may provide— 

5 ‘‘(A) professional development, including 

6 joint professional development, for secondary 

7 and postsecondary instructors of courses in a 

8 dual enrollment program or early college high 

9 school program; or 

10 ‘‘(B) extended learning time opportunities 

11 for students participating in dual enrollment 

12 programs and early college high school pro13 grams. 

14 ‘‘(4) PRIORITIES.—In awarding subgrants 

15 under this subsection, a State— 

16 ‘‘(A) shall— 

17 ‘‘(i) give priority to eligible entities 

18 that include a high-need local educational 

19 agency that serves students not less than 

20 60 percent of whom are low-income stu21 dents or traditionally underrepresented 

22 students; or 

23 ‘‘(ii) give priority to eligible entities 

24 that include a high-need high school that 

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1 demic services in place to help partici2 pating students persist and complete a 

3 dual enrollment program or early college 

4 high school program; and 

5 ‘‘(B) may give a priority to eligible entities 

6 that— 

7 ‘‘(i) develop innovative strategies for 

8 expanding access to dual enrollment pro9 grams and early college high school pro10 grams for low-income students and tradi11 tionally underrepresented students, and in12 creasing the number of those students that 

13 complete such programs; and 

14 ‘‘(ii) demonstrate how the entity will 

15 sustain funding for dual enrollment pro16 grams or early college high school pro17 grams after the grant period ends. 

18 ‘‘(f) MATCHING REQUIREMENTS.— 

19 ‘‘(1) STATE MATCHING REQUIREMENT.—A 

20 State receiving a grant under this section shall pro21 vide, from non-Federal sources, in cash or in-kind, 

22 an amount equal to 50 percent of the grant funds 

23 awarded under this section. 

24 ‘‘(2) ELIGIBLE ENTITY MATCHING REQUIRE25 MENT.—A State receiving a grant under this section 

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1 shall require each eligible entity that receives a 

2 subgrant under this section to provide, from non3 Federal sources, in cash or in-kind, an amount equal 

4 to not less than 25 percent of the amount of 

5 subgrant funds awarded to that eligible entity. 

6 ‘‘(g) PERFORMANCE MEASURES.— 

7 ‘‘(1) IN GENERAL.—The Secretary shall, prior 

8 to awarding grants under this section, establish per9 formance measures for the programs and activities 

10 carried out under grants and subgrants awarded 

11 under this section. The Secretary shall ensure that 

12 the performance measures are made available to po13 tential applicants prior to seeking applications for 

14 grants under this section. 

15 ‘‘(2) MONITORING PROGRESS.—The perform16 ance measures established under paragraph (1), at 

17 a minimum, shall collect data on the progress of 

18 grantees and subgrantees in improving the outcomes 

19 described in paragraph (3) for all students partici20 pating in dual enrollment programs or early college 

21 high school programs funded with a grant or 

22 subgrant under this section. This data shall be 

23 disaggregated according to the categories described 

24 in section 1111(b)(2)(C)(v)(II) of the Elementary 

25 and Secondary Education Act of 1965. 

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1 ‘‘(3) OUTCOMES.—The performance measures 

2 shall measure the progress of grantees and sub3 grantees in achieving the following outcomes: 

4 ‘‘(A) Increasing high school graduation 

5 rates. 

6 ‘‘(B) Increasing dropout recovery (re7 entry) rates. 

8 ‘‘(C) Decreasing the percentage of students 

9 with less than a 90 percent attendance rate. 

10 ‘‘(D) Increasing the percentage of students 

11 who have on-time credit accumulation at the 

12 end of each grade. 

13 ‘‘(E) Increasing annual, average attend14 ance rates. 

15 ‘‘(F) Reducing the need for remediation in 

16 postsecondary education. 

17 ‘‘(G) Increasing enrollment rates at insti18 tutions of higher education. 

19 ‘‘(H) Increasing postsecondary education 

20 persistence and completion rates. 

21 ‘‘(I) Increasing the rate at which students 

22 complete postsecondary education. 

23 ‘‘(J) Measured increases in enrollment in 

24 dual enrollment programs and early college high 

25 school programs. 

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1 ‘‘(K) Increasing the percentage of students 

2 who successfully complete and earn a minimum 

3 of 12 credits for rigorous postsecondary edu4 cation courses while attending a secondary 

5 school. 

6 ‘‘(L) Increasing the percentage of students 

7 who earn postsecondary credit and successfully 

8 have such credit accepted by an institution of 

9 higher education toward a degree or certificate. 

10 ‘‘(h) REPORTING.— 

11 ‘‘(1) STATE REPORTS.—Each State that re12 ceives a grant under this section shall submit to the 

13 Secretary, at such time and in such manner as the 

14 Secretary may require, an annual report that in15 cludes— 

16 ‘‘(A) information about the State’s 

17 progress on the performance measures estab18 lished under subsection (g) and the data sup19 porting that progress; and 

20 ‘‘(B) information submitted to the State 

21 from the eligible entities, as described in para22 graph (2). 

23 ‘‘(2) ELIGIBLE ENTITY REPORTS.—Each eligi24 ble entity that receives a subgrant under this section 

25 shall submit to the State, at such time and in such 

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1 manner as the State may require, an annual report 

2 that includes information about the entity’s progress 

3 on the performance measures established under sub4 section (g) and the data supporting that progress, at 

5 such time and in such manner as the State may re6 quire. 

7 ‘‘(i) EVALUATION.—The Secretary shall— 

8 ‘‘(1) acting through the Director of the Insti9 tute of Education Sciences, evaluate the implementa10 tion and impact of activities supported under this 

11 section; and 

12 ‘‘(2) disseminate research on best practices. 

13 ‘‘(j) SUPPLEMENT, NOT SUPPLANT.—A State or eli14 gible entity shall use Federal funds received under this 

15 section only to supplement the funds that would, in the 

16 absence of such Federal funds, be made available from 

17 non-Federal sources for activities described in this section, 

18 and not to supplant such funds. 

19 ‘‘(k) AUTHORIZATION.—There are authorized to be 

20 appropriated to carry out this section such sums as may 

21 be necessary for each of fiscal years 2015 through 2019.’’. 

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1 SEC. 713. MINORITY-SERVING INSTITUTIONS INNOVATION 

2 FUND. 

3 Title VII (20 U.S.C. 1134 et seq.), as amended by 

4 sections 711 and 712, is further amended by adding at 

5 the end the following: 

6 ‘‘PART H—MINORITY-SERVING INSTITUTIONS 

7 INNOVATION FUND 

8 ‘‘SEC. 795. PURPOSE. 

9 ‘‘It is the purpose of this part to assist minority-serv10 ing institutions in planning, developing, implementing, 

11 validating, and replicating innovations that provide solu12 tions to persistent challenges in enabling economically and 

13 educationally disadvantaged students to enroll in, persist 

14 through, and graduate from minority-serving institutions, 

15 including initiatives designed to— 

16 ‘‘(1) improve student achievement at minority17 serving institutions; 

18 ‘‘(2) increase successful recruitment at minor19 ity-serving institutions of— 

20 ‘‘(A) students from low-income families of 

21 all races; 

22 ‘‘(B) adults; and 

23 ‘‘(C) military-affiliated students; 

24 ‘‘(3) increase the rate at which students en25 rolled in minority-serving institutions make adequate 

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1 or accelerated progress towards graduation and suc2 cessfully graduate from such institutions; 

3 ‘‘(4) increase the number of students pursuing 

4 and completing degrees in science, technology, engi5 neering, and mathematics at minority-serving insti6 tutions and pursuing graduate work in such fields; 

7 ‘‘(5) enhance the quality of teacher preparation 

8 programs offered by minority-serving institutions; 

9 ‘‘(6) redesign course offerings and institutional 

10 student aid programs to help students obtain mean11 ingful employment; and 

12 ‘‘(7) expand the effective use of technology at 

13 minority-serving institutions. 

14 ‘‘SEC. 795A. DEFINITIONS. 

15 ‘‘In this part the term ‘eligible entity’ means— 

16 ‘‘(1) an institution that is eligible for the re17 ceipt of funds under the programs authorized under 

18 title III or V of this Act; or 

19 ‘‘(2) a consortium that includes an institution 

20 described in paragraph (1) and— 

21 ‘‘(A) one or more other institutions of 

22 higher education; 

23 ‘‘(B) one or more nonprofit organizations; 

24 or 

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1 ‘‘(C) one or more local educational agen2 cies. 

3 ‘‘SEC. 795B. GRANTS AUTHORIZED. 

4 ‘‘(a) IN GENERAL.—From funds made available for 

5 this part under section 795F, the Secretary shall award 

6 competitive planning and implementation grants, as de7 scribed in subsections (b) and (c), to eligible entities to 

8 enable such entities to plan for the implementation of, in 

9 the case of a planning grant, and implement, in the case 

10 of an implementation grant, innovations authorized under 

11 this part and to support the implementation, validation, 

12 scaling up, and replication of such innovations. 

13 ‘‘(b) PLANNING GRANTS.— 

14 ‘‘(1) DURATION.—A planning grant authorized 

15 under this subsection shall be for a 1-year period. 

16 ‘‘(2) GRANT AMOUNTS.—Each planning grant 

17 authorized under this subsection shall be an amount 

18 that is not more than $100,000. 

19 ‘‘(c) IMPLEMENTATION GRANTS.— 

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

21 for this part under section 795F, the Secretary shall 

22 award implementation grants to eligible entities to 

23 further develop, pilot, field-test, implement, docu24 ment, validate, and, as applicable, scale up and repmstockstill on DSK4VPTVN1PROD with BILLS

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1 licate innovations that address the purpose of this 

2 part. 

3 ‘‘(2) DURATION.—An implementation grant au4 thorized under this subsection shall be for a 5-year 

5 period. Grant funding after the first 3 years shall be 

6 conditional upon the eligible entity achieving satis7 factory progress towards carrying out the edu8 cational innovations, activities, and projects de9 scribed in section 795E, as determined by the Sec10 retary. 

11 ‘‘(3) GRANT AMOUNT.—Each implementation 

12 grant authorized under this subsection shall be an 

13 amount that is not more than $10,000,000. 

14 ‘‘(d) CONSORTIUM ENTITIES.— 

15 ‘‘(1) FISCAL AGENT.—In the case of an eligible 

16 entity that applies for a grant under this part as a 

17 consortium, each member of the consortium com18 prising the eligible entity shall sign a written agree19 ment designating 1 member of the consortium to 

20 serve as the fiscal agent of the eligible entity and act 

21 on behalf of the eligible entity in performing the fi22 nancial duties of the eligible entity. 

23 ‘‘(2) SUBGRANTS.—The fiscal agent for an eli24 gible entity (as described in paragraph (1)) may 

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1 award subgrants to another member of the consor2 tium that comprises that eligible entity. 

3 ‘‘(e) FEDERAL SHARE.— 

4 ‘‘(1) PLANNING GRANTS.—The Federal share of 

5 the total cost of carrying out a project funded by a 

6 planning grant authorized under subsection (b) shall 

7 be 100 percent of such total cost. 

8 ‘‘(2) IMPLEMENTATION GRANTS.— 

9 ‘‘(A) IN GENERAL.—The Federal share of 

10 the total cost of carrying out a project funded 

11 by an implementation grant authorized under 

12 subsection (c) shall be not more than 85 per13 cent of such total cost. 

14 ‘‘(B) REMAINING COST.—An eligible entity 

15 that receives an implementation grant under 

16 subsection (c) shall provide, from non-Federal 

17 sources, an amount equal to not less than 15 

18 percent of the total cost of carrying out the 

19 project funded by the grant. Such amount may 

20 be provided by in cash or in-kind. 

21 ‘‘SEC. 795C. APPLICATIONS. 

22 ‘‘(a) IN GENERAL.—An eligible entity desiring a 

23 grant under this part shall submit an application to the 

24 Secretary at such time, in such manner, and containing 

25 such information as the Secretary may reasonably require. 

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1 ‘‘(b) CONSORTIUM ENTITIES.—An application under 

2 this section for a planning grant or an implementation 

3 grant by an eligible entity applying for a grant under this 

4 part as a consortium shall include the written agreement 

5 described in section 795B(d). 

6 ‘‘(c) PLANNING GRANTS.—The Secretary shall en7 sure that the application requirements under this section 

8 for a planning grant authorized under section 795B(b) in9 clude, in addition to the requirement under subsection (b), 

10 only the minimal requirements that are necessary to re11 view the proposed process of an eligible entity for the plan12 ning and development of 1 or more educational innova13 tions that address the purpose of this part as described 

14 in section 795. 

15 ‘‘(d) IMPLEMENTATION GRANTS.—An application 

16 under this section for an implementation grant authorized 

17 under section 795B(c) shall include, in addition to the re18 quirement under subsection (b), a description of— 

19 ‘‘(1) each educational innovation that the eligi20 ble entity will implement using the funds made avail21 able by such grant, including a description of the 

22 evidence supporting the effectiveness of each such 

23 innovation; 

24 ‘‘(2) how each educational innovation proposed 

25 to be implemented under such grant will address the 

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1 purpose of this part, as described in section 795, 

2 and how each such innovation will further the insti3 tutional or organizational mission of the eligible en4 tity and any institution or organization that is a 

5 member of a consortium comprising the eligible enti6 ty; 

7 ‘‘(3) the specific activities that the eligible enti8 ty will carry out with funds made available by such 

9 grant, including, for a consortium application a de10 scription of the activities that each member of the 

11 consortium will carry out and a description of the 

12 capacity of each member of the consortium to carry 

13 out such activities; 

14 ‘‘(4) the performance measures that the eligible 

15 entity will use to track the eligible entity’s progress 

16 in implementing each proposed educational innova17 tion, including a description of how the entity will 

18 implement such performance measures and use in19 formation on performance to make adjustments and 

20 improvements to activities, as needed, over the 

21 course of the grant period; 

22 ‘‘(5) how the eligible entity will provide the 

23 amount required under section 795B(e)(2)(B); 

24 ‘‘(6) how the eligible entity will provide for an 

25 independent evaluation of the implementation and 

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1 impact of the projects funded by such grant that in2 cludes— 

3 ‘‘(A) an interim report evaluating the 

4 progress made in the first 3 years of the grant; 

5 and 

6 ‘‘(B) a final report to be completed at the 

7 end of the grant period; and 

8 ‘‘(7) the plan of the eligible entity for con9 tinuing each proposed educational innovation after 

10 the grant period has ended. 

11 ‘‘SEC. 795D. PRIORITY. 

12 ‘‘In awarding grants under this part, the Secretary 

13 shall give priority— 

14 ‘‘(1) first to applications from eligible entities 

15 that include institutions— 

16 ‘‘(A) that serve a high percentage of stu17 dents that are eligible to receive a Federal Pell 

18 Grant; and 

19 ‘‘(B) that have endowment funds the mar20 ket value of which, per full-time equivalent stu21 dent, is less than the average current market 

22 value of the endowment funds, per full-time 

23 equivalent student at other applicant institu24 tions; 

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1 ‘‘(2) next, to applications that seek to address 

2 issues of major national need, including— 

3 ‘‘(A) educational innovations designed to 

4 increase the rate of postsecondary degree at5 tainment for populations within minority groups 

6 that have low relative rates of postsecondary de7 gree attainment, including African-American 

8 males who attain a postsecondary degree; 

9 ‘‘(B) innovative partnerships between mi10 nority-serving institutions and local educational 

11 agencies that are designed to increase the en12 rollment and successful completion of postsec13 ondary education for populations that have been 

14 historically underrepresented in higher edu15 cation; 

16 ‘‘(C) educational innovations that bring to17 gether the resources of minority-serving institu18 tions and partner institutions in support of eco19 nomic development, entrepreneurship, and the 

20 commercialization of funded research and the 

21 development of an innovation ecosystem on 

22 postsecondary school campuses; 

23 ‘‘(D) educational innovations that support 

24 developing programs and initiatives to support 

25 undergraduate and graduate programs in 

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1 science, technology, engineering, and mathe2 matics; and 

3 ‘‘(E) educational innovations described in 

4 paragraphs (3) and (6) of section 795E(b). 

5 ‘‘SEC. 795E. USE OF FUNDS. 

6 ‘‘(a) PLANNING GRANTS.—An eligible entity receiv7 ing a planning grant authorized under section 795B(b) 

8 shall use funds made available by such grant to conduct 

9 a comprehensive institutional planning process that in10 cludes— 

11 ‘‘(1) an assessment of the needs of the minor12 ity-serving institution and, in the case of an eligible 

13 entity applying as a consortium, the needs of each 

14 member of the consortium; 

15 ‘‘(2) research on educational innovations, con16 sistent with the purpose of this part as described in 

17 section 795, to meet the needs described in para18 graph (1); 

19 ‘‘(3) the selection of 1 or more educational in20 novations to be implemented; 

21 ‘‘(4) an assessment of the capacity of the mi22 nority-serving institution and, in the case of an eligi23 ble entity applying as a consortium, the capacity of 

24 each member of the consortium, to implement each 

25 such educational innovation; and 

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1 ‘‘(5) activities to further develop such capacity. 

2 ‘‘(b) IMPLEMENTATION GRANTS.—An eligible entity 

3 receiving an implementation grant under section 795B(c) 

4 shall use the funds made available by such grant to further 

5 develop, pilot, field-test, implement, document, validate, 

6 and, as applicable, scale up and replicate educational inno7 vations that address the purpose of this part, as described 

8 in section 795, such as educational innovations designed 

9 to— 

10 ‘‘(1) improve student achievement, such as 

11 through activities designed to increase the number 

12 or percentage of students who successfully complete 

13 developmental or remedial coursework (which may 

14 be accomplished through the evidence-based redesign 

15 of such coursework) and pursue and succeed in post16 secondary studies; 

17 ‘‘(2) improve and expand institutional recruit18 ment, postsecondary school awareness, and postsec19 ondary school preparation efforts targeting students, 

20 including high-achieving students, from low-income 

21 families, such as through activities undertaken in 

22 partnership with local educational agencies and non23 profit organizations (including the introduction of 

24 dual enrollment programs and the implementation of 

25 activities designed to enable more students to enter 

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1 postsecondary education without the need for reme2 diation); 

3 ‘‘(3) increase the number or percentage of stu4 dents, particularly students who are members of his5 torically underrepresented populations, who enroll in 

6 science, technology, engineering, and mathematics 

7 courses, graduate with degrees in such fields, and 

8 pursue advanced studies in such fields; 

9 ‘‘(4) increase (such as through the provision of 

10 comprehensive academic and nonacademic student 

11 support services) the number or percentage of stu12 dents who make satisfactory or accelerated progress 

13 toward graduation from postsecondary school and 

14 the number or percentage of students who graduate 

15 from postsecondary school on time; 

16 ‘‘(5) implement evidence-based improvements to 

17 courses, particularly high-enrollment courses, to im18 prove student outcomes and reduce education costs 

19 for students, including costs of remedial courses; 

20 ‘‘(6) enhance the quality of teacher preparation 

21 programs at minority-serving institutions, to enable 

22 teachers at such institutions to be highly effective in 

23 the classroom and to enable such programs to meet 

24 the demands for accountability in teacher education; 

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1 ‘‘(7) expand the effective use of technology in 

2 higher education, such as through inter-institutional 

3 collaboration on implementing competency-based 

4 technology-enabled delivery models (including hybrid 

5 models) or through the use of open educational re6 sources and digital content; and 

7 ‘‘(8) provide a continuum of solutions by incor8 porating activities that address multiple objectives 

9 described in paragraphs (1) through (7). 

10 ‘‘SEC. 795F. AUTHORIZATION OF APPROPRIATIONS. 

11 ‘‘There are authorized to be appropriated such sums 

12 as may be necessary for fiscal years 2015 through 2020 

13 to carry out the activities under this part.’’. 

14 SEC. 714. STATE COMPETITIVE GRANT PROGRAM FOR RE15 FORMS TO IMPROVE HIGHER EDUCATION 

16 PERSISTENCE AND COMPLETION. 

17 Title VII (20 U.S.C. 1133 et seq.), as amended by 

18 sections 711, 712, and 713, is further amended by adding 

19 at the end the following: 

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1 ‘‘PART I—STATE COMPETITIVE GRANT PROGRAM 

2 FOR REFORMS TO IMPROVE HIGHER EDU3 CATION PERSISTENCE AND COMPLETION 

4 ‘‘SEC. 796. PURPOSE. 

5 ‘‘The purpose of this part is to provide incentives for 

6 States to implement comprehensive reforms and innova7 tive strategies that are designed to lead to— 

8 ‘‘(1) significant improvements in postsecondary 

9 outcomes for traditionally underrepresented stu10 dents, including improvements in postsecondary en11 rollment, persistence, and completion by 2020; 

12 ‘‘(2) reductions in the need for remedial edu13 cation for postsecondary students; 

14 ‘‘(3) increased alignment between elementary 

15 and secondary education, postsecondary education, 

16 and workforce systems; and 

17 ‘‘(4) innovation in postsecondary education. 

18 ‘‘SEC. 796A. DEFINITIONS. 

19 ‘‘In this part: 

20 ‘‘(1) DUAL ENROLLMENT PROGRAM.—The term 

21 ‘dual enrollment program’ means a program of study 

22 provided by an institution of higher education 

23 through which a student who has not graduated 

24 from secondary school with a regular high school di25 ploma is able to earn secondary school credit and 

26 transferable postsecondary credit that is accepted as 

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1 credit toward a postsecondary degree or credential 

2 at no cost to the participant or the participant’s 

3 family. A dual enrollment program shall consist of 

4 not less than 2 postsecondary credit-bearing courses 

5 and support and academic services that help a stu6 dent persist and complete such courses. 

7 ‘‘(2) EARLY COLLEGE HIGH SCHOOL PRO8 GRAM.—The term ‘early college high school pro9 gram’ means a formal partnership between at least 

10 1 local educational agency and at least 1 institution 

11 of higher education that allows students to simulta12 neously complete, as part of an organized course of 

13 study, requirements toward earning a regular high 

14 school diploma and earning not less than 12 trans15 ferable postsecondary credits that are accepted as 

16 credit toward a postsecondary degree or credential 

17 at no cost to the participant or the participant’s 

18 family. 

19 ‘‘(3) LOW INCOME STUDENT.—The term ‘low 

20 income student’ means— 

21 ‘‘(A) with respect to an elementary school 

22 or secondary school student, a student who— 

23 ‘‘(i) is eligible for a free or reduced 

24 priced lunch under the Richard B. Russell 

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1 National School Lunch Act (42 U.S.C. 

2 1751 et seq.); 

3 ‘‘(ii) is eligible for or is a member of 

4 a family eligible for means tested benefits 

5 or public assistance at the Federal, State, 

6 or local level; or 

7 ‘‘(iii) lives in a high-poverty area or 

8 attends a secondary school that serves stu9 dents in a high-poverty area; or 

10 ‘‘(B) with respect to a postsecondary stu11 dent, a student who— 

12 ‘‘(i) is eligible for a Federal Pell 

13 Grant under section 401; or 

14 ‘‘(ii) is eligible for means-tested bene15 fits or public assistance at the Federal, 

16 State, or local level. 

17 ‘‘(4) PERSIST.—The term ‘persist’ means to 

18 continue enrollment in postsecondary education. 

19 ‘‘(5) TRADITIONALLY UNDERREPRESENTED

20 STUDENT.—The term ‘traditionally underrep21 resented student’ means a student who— 

22 ‘‘(A) is a low-income student and— 

23 ‘‘(i) is a first generation college stu24 dent, as defined in section 402A(h); 

25 ‘‘(ii) has a dependent; 

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1 ‘‘(iii) is employed for not less than 25 

2 hours a week; 

3 ‘‘(iv) has taken 2 or more develop4 mental education courses; or 

5 ‘‘(v) left high school without a regular 

6 high school diploma or its equivalent; 

7 ‘‘(B) is or has been a homeless child or 

8 youth, as defined in section 725 of the McKin9 ney-Vento Homeless Assistance Act (42 U.S.C. 

10 11434a); 

11 ‘‘(C) is a foster care youth; 

12 ‘‘(D) is an individual with a disability, as 

13 defined in section 3 of the Americans with Dis14 abilities Act (42 U.S.C. 12102); 

15 ‘‘(E) is a child with a disability, as defined 

16 in section 602 of the Individuals with Disabil17 ities Education Act; or 

18 ‘‘(F) has been adjudicated in the juvenile 

19 or criminal justice system. 

20 ‘‘SEC. 796B. STATE GRANT PROGRAM AUTHORIZED. 

21 ‘‘(a) RESERVATION OF FUNDS.—From amounts 

22 made available to carry out this part for a fiscal year, the 

23 Secretary may reserve not more than 2 percent to carry 

24 out activities in accordance with this part related to tech25 nical assistance, evaluation, outreach, and dissemination. 

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1 ‘‘(b) PROGRAM AUTHORIZED.— 

2 ‘‘(1) IN GENERAL.—From amounts made avail3 able to carry out this part and not reserved under 

4 subsection (a), the Secretary shall award planning or 

5 implementation grants under this part, in such a 

6 manner as to achieve an equitable distribution of 

7 grant funds throughout the United States, to States 

8 to enable the States to plan or implement com9 prehensive reforms and innovative strategies to im10 prove postsecondary outcomes for all students, espe11 cially low-income and traditionally underrepresented 

12 students. 

13 ‘‘(2) PLANNING AND IMPLEMENTATION

14 GRANTS.—As described in paragraph (1), the Sec15 retary shall award grants to States for the purpose 

16 described in section 796 by— 

17 ‘‘(A) awarding planning grants, on a com18 petitive basis, to States to enable such States to 

19 develop the comprehensive State plan described 

20 in section 796D to increase postsecondary edu21 cation enrollment, persistence, and attainment 

22 by 2020; and 

23 ‘‘(B) awarding implementation grants, on 

24 a competitive basis, to States to enable such 

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1 States to implement the comprehensive State 

2 plan described in section 796D. 

3 ‘‘(3) LIMITATIONS.— 

4 ‘‘(A) LIMIT ON NUMBER OF GRANTS.—A 

5 State may receive only 1 planning grant, and 

6 only 1 implementation grant, under this section. 

7 ‘‘(B) LIMIT ON NUMBER OF PLANNING

8 GRANTS.—The Secretary may elect to limit the 

9 number and amount of planning grants award10 ed under this section during a grant period, if 

11 the Secretary determines it would best promote 

12 the purposes of this part. 

13 ‘‘(4) DURATION.— 

14 ‘‘(A) PLANNING GRANT.—Each planning 

15 grant awarded under this part shall be for a pe16 riod of not more than 24 months. 

17 ‘‘(B) IMPLEMENTATION GRANT.—Each im18 plementation grant awarded under this part 

19 shall be for a period of not more than 5 years. 

20 ‘‘(C) REQUIREMENTS FOR ADDITIONAL

21 FUNDING.—Before receiving funding for an im22 plementation grant for the third or any subse23 quent year of the grant, the State receiving the 

24 grant shall demonstrate to the Secretary that 

25 the State is— 

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1 ‘‘(i) making progress in implementing 

2 the State plan described under section 

3 796D at a rate that the Secretary deter4 mines will result in full implementation of 

5 that plan during the remainder of the 

6 grant period; and 

7 ‘‘(ii) making progress, as measured by 

8 the annual performance measures and tar9 gets described in section 796D(b)(2), at a 

10 rate that the Secretary determines will re11 sult in reaching those targets and achiev12 ing the objectives of the grant, during the 

13 remainder of the grant period. 

14 ‘‘SEC. 796C. APPLICATION PROCESS. 

15 ‘‘(a) PLANNING GRANTS.—Each State that desires to 

16 receive a planning grant under this part shall submit an 

17 application to the Secretary at such time, in such manner, 

18 and containing such information as the Secretary may rea19 sonably require. At a minimum, each such application 

20 shall include the following: 

21 ‘‘(1) Documentation of the State’s record, in22 cluding demonstrating a need for the grant funds to 

23 improve the State’s record, as applicable, in the 

24 areas to be measured by the performance measures 

25 under section 796D(b)(2). 

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1 ‘‘(2) A coherent strategy for using funds under 

2 this part, and other Federal, State, and local funds, 

3 to design a State plan as described in section 796D. 

4 ‘‘(3) Evidence that there will be collaboration 

5 among the State, the State educational agency, insti6 tutions of higher education located in the State, 

7 postsecondary students, workforce partners, and 

8 other stakeholders, in developing and implementing 

9 such plan, including evidence of the State’s commit10 ment and capacity to implement such plan. 

11 ‘‘(4) An assurance of the State’s commitment 

12 to developing the State plan. 

13 ‘‘(5) An assurance of the State’s commitment 

14 to meeting, before the end of the planning grant pe15 riod, any requirements that the Secretary may es16 tablish. 

17 ‘‘(b) IMPLEMENTATION GRANTS.—Each State that 

18 desires to receive an implementation grant under this part 

19 shall submit an application to the Secretary at such time, 

20 in such manner, and containing such information as the 

21 Secretary may reasonably require. At a minimum, each 

22 such application shall include the following: 

23 ‘‘(1) Documentation of the State’s record, in24 cluding demonstrating a need for the grant funds to 

25 improve the State’s record, as applicable, in the 

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1 areas to be measured by the performance measures 

2 under section 796D(b)(2). 

3 ‘‘(2) A description of how the implementation 

4 grant funds will be used to implement the com5 prehensive State plan described in section 796D, 

6 which may be an existing (as of the date of applica7 tion) State plan that meets the requirements of such 

8 section. 

9 ‘‘(3) Evidence of conditions of innovation and 

10 reform that the State has established and the 

11 State’s plan for implementing additional conditions 

12 for innovation and reform, including— 

13 ‘‘(A) a description of how the State has 

14 identified and eliminated ineffective practices in 

15 the past, and a plan for doing so in the future; 

16 ‘‘(B) a description of how the State has 

17 identified and promoted effective practices in 

18 the past, and a plan for doing so in the future; 

19 and 

20 ‘‘(C) steps the State has taken and will 

21 take to eliminate statutory, regulatory, proce22 dural, or other barriers to facilitate the full im23 plementation of the State’s proposed plan under 

24 section 796D. 

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1 ‘‘(4) The State’s annual performance measures 

2 and targets, established in accordance with the re3 quirements of section 796D(b)(2). 

4 ‘‘(5) A signed assurance from every public insti5 tution of higher education in the State that the in6 stitution will carry out any activities that the State 

7 determines may be necessary to carry out the State 

8 plan under section 796D. 

9 ‘‘(6) An assurance from the State that the 

10 State will provide equitable resources and technical 

11 assistance to all public institutions of higher edu12 cation in the State to implement the reforms de13 scribed in this section. 

14 ‘‘(c) CRITERIA FOR EVALUATING APPLICATIONS.— 

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

16 grants under this part on a competitive basis to a 

17 geographically diverse group of States, based on the 

18 quality of the applications submitted by the States. 

19 ‘‘(2) PUBLICATION OF EXPLANATION.—The 

20 Secretary shall publish an explanation of how the 

21 application review process will ensure an equitable, 

22 transparent, and objective evaluation of applicants. 

23 ‘‘(d) PRIORITY.—In awarding grants under this part, 

24 the Secretary shall give priority to a State if— 

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1 ‘‘(1) the State has a significant percentage of 

2 low-income students or traditionally underrep3 resented students residing within the State; 

4 ‘‘(2) the State has a strong record of invest5 ment in postsecondary education; or 

6 ‘‘(3) the State distributes State postsecondary 

7 education aid on the basis of need. 

8 ‘‘SEC. 796D. COMPREHENSIVE STATE PLAN. 

9 ‘‘(a) ESTABLISHMENT OF PLAN.—Each State receiv10 ing a planning or implementation grant under this part 

11 shall establish or implement, respectively, a comprehensive 

12 State plan described in subsection (b) to increase student 

13 access, persistence, and completion in postsecondary edu14 cation at— 

15 ‘‘(1) public institutions of higher education 

16 throughout the State; and 

17 ‘‘(2) private nonprofit institutions of higher 

18 education (as defined in section 101) that agree to 

19 participate in and implement the State plan. 

20 ‘‘(b) COMPREHENSIVE STATE PLAN.—The com21 prehensive State plan described in subsection (a) shall 

22 contain the following: 

23 ‘‘(1) A commitment to implement statewide re24 forms in the following areas: 

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1 ‘‘(A) Removing barriers to innovation in 

2 postsecondary education by— 

3 ‘‘(i) shortening the length of time to a 

4 postsecondary degree; 

5 ‘‘(ii) promoting efficiencies on cam6 puses that lead to lower net tuition prices 

7 for students; 

8 ‘‘(iii) promoting the use of technology 

9 to increase personalized learning, advising, 

10 and support services for students; and 

11 ‘‘(iv) developing innovative education 

12 delivery models, such as using technology 

13 to enhance online and classroom learning, 

14 in order to increase participation and re15 tention of students, particularly low-income 

16 students and students who are in the first 

17 generation in their family to attend an in18 stitution of higher education. 

19 ‘‘(B) Improving the transition between ele20 mentary and secondary education and postsec21 ondary education and the workforce by— 

22 ‘‘(i) reforming the process for identi23 fying students for developmental education, 

24 offering developmental education examina25 tions while students are in secondary 

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1 school to identify knowledge and skills 

2 gaps, and reducing the need for develop3 mental education by ensuring that develop4 mental education courses are reserved for 

5 students who are substantially underpre6 pared and placing better-prepared students 

7 in traditional courses; 

8 ‘‘(ii) redesigning and standardizing 

9 developmental education requirements and 

10 assessments among institutions of higher 

11 education; 

12 ‘‘(iii) reforming the content, timing, 

13 and delivery of developmental education to 

14 help academically underprepared students 

15 complete college through comprehensive 

16 approaches; 

17 ‘‘(iv) using technology, academic, and 

18 student supports that engage students, 

19 align developmental education to students’ 

20 academic and career goals, and accelerate 

21 the students’ progression through remedi22 ation and credit-bearing coursework; 

23 ‘‘(v) increasing access to dual enroll24 ment and early college high schools for 

25 low-income students; and 

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1 ‘‘(vi) establishing clear and trans2 parent policies regarding how completion 

3 of dual enrollment and early college high 

4 school programs will result in the transfer 

5 of credits— 

6 ‘‘(I) to public institutions of 

7 higher education in the State; and 

8 ‘‘(II) to private nonprofit institu9 tions of higher education that choose 

10 to participate in such credit transfer 

11 policies. 

12 ‘‘(C) Increasing persistence in postsec13 ondary education by carrying out all of the fol14 lowing: 

15 ‘‘(i) Developing early warning systems 

16 to identify students at risk of dropping out 

17 of postsecondary education. 

18 ‘‘(ii) Providing highly effective and 

19 comprehensive academic and student sup20 port services at institutions of higher edu21 cation. 

22 ‘‘(iii) Requiring all public institutions 

23 of higher education in the State to estab24 lish credit transfer policies and articulation 

25 agreements, that have been developed in 

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1 consultation with educators in institutions 

2 of higher education, with each other so 

3 that students can seamlessly transfer 

4 among all public institutions of higher edu5 cation in the State. Such articulation 

6 agreements shall guarantee— 

7 ‘‘(I) that students who earn post8 secondary credit at a public institu9 tion of higher education will be able to 

10 transfer those credits to— 

11 ‘‘(aa) any public institution 

12 of higher education in the State, 

13 and that such credits will count 

14 toward meeting specific degree or 

15 credential requirements; and 

16 ‘‘(bb) any private nonprofit 

17 institution of higher education 

18 that chooses to participate in an 

19 articulation agreement; 

20 ‘‘(II) that common course num21 bering is used to identify substantially 

22 similar courses; 

23 ‘‘(III) that credits are recognized 

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1 its earned for a degree or credential 

2 program at a public institution of 

3 higher education in the State and at 

4 any private nonprofit institution of 

5 higher education that chooses to par6 ticipate, consistent with clause (I)(bb); 

7 and 

8 ‘‘(IV) that if a student earns an 

9 associate’s degree, that associate’s de10 gree, awarded by the participating in11 stitution of higher education in the 

12 State, shall be fully acceptable in 

13 transfer and credited as the first 2 

14 years of a related baccalaureate pro15 gram at a public institution of higher 

16 education in such State. 

17 ‘‘(iv) Including private nonprofit insti18 tutions of higher education that choose to 

19 participate in the credit transfer policies 

20 and articulation agreements described in 

21 clause (iii). 

22 ‘‘(v) Providing students residing in 

23 the State with free degree audits. 

24 ‘‘(vi) Providing students with an as25 surance that if a student receives an assomstockstill on DSK4VPTVN1PROD with BILLS

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1 ciate’s degree from a public institution of 

2 higher education in the State, that associ3 ate’s degree will translate into upper level 

4 status at a receiving public institution of 

5 higher education. 

6 ‘‘(D) Increasing transparency of informa7 tion to students and their families by— 

8 ‘‘(i) providing financial literacy infor9 mation to students and families, including 

10 information regarding the benefits of post11 secondary education, planning for postsec12 ondary education, postsecondary education 

13 opportunities, and career planning; 

14 ‘‘(ii) providing information on financ15 ing options for postsecondary education 

16 and activities that promote financial lit17 eracy and debt management among stu18 dents and families, including assistance in 

19 completion of the Free Application for 

20 Federal Student Aid or other common fi21 nancial reporting form under section 

22 483(a); 

23 ‘‘(iii) reporting workforce outcomes 

24 for postsecondary graduates; 

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1 ‘‘(iv) developing multi-year tuition and 

2 fee schedules; 

3 ‘‘(v) improving postsecondary data 

4 systems and linking those systems to exist5 ing State data systems for elementary and 

6 secondary education and the workforce; 

7 and 

8 ‘‘(vi) developing practices for the con9 tinuous assessment of student learning and 

10 for public reporting of non-personally iden11 tifiable student learning outcomes. 

12 ‘‘(E) Increasing and improving the use of 

13 funding in higher education by— 

14 ‘‘(i) awarding State financial aid to 

15 students on the basis of need, rather than 

16 merit; 

17 ‘‘(ii) developing performance funding 

18 systems that measure and award funding 

19 to institutions of higher education based 

20 upon improvement in postsecondary edu21 cation outcomes for students, including 

22 successful transfer from a 2-year institu23 tion of higher education to a 4-year insti24 tution of higher education and degree at25 tainment; and 

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1 ‘‘(iii) rewarding institutions that dis2 tribute their institutional aid based on 

3 need. 

4 ‘‘(2) Annual performance measures and targets 

5 for the programs and activities carried out under 

6 this part, which shall include measures and targets 

7 for goals established by the Secretary under section 

8 796G as well as measures and targets developed by 

9 the State and approved by the Secretary. The an10 nual performance measures and targets shall, at a 

11 minimum, track the State’s progress in— 

12 ‘‘(A) implementing the plan described in 

13 this section; 

14 ‘‘(B) increasing the percentage of low in15 come and traditionally underrepresented stu16 dents who enroll in, persist through, and grad17 uate from higher education, as measured by— 

18 ‘‘(i) reducing the need for higher edu19 cation remediation; 

20 ‘‘(ii) increasing higher education en21 rollment rates; 

22 ‘‘(iii) increasing persistence and com23 pletion rates in higher education; 

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1 ‘‘(iv) increasing the rate at which stu2 dents complete a program at an institution 

3 of higher education; 

4 ‘‘(v) increasing enrollment in dual en5 rollment programs and early college high 

6 school programs; 

7 ‘‘(vi) increasing the percentage of stu8 dents who successfully complete and earn a 

9 minimum of 12 credits for rigorous post10 secondary education courses while attend11 ing a secondary school; and 

12 ‘‘(vii) increasing the percentage of 

13 students who earn postsecondary credit 

14 and successfully have such credit accepted 

15 by an institution of higher education to16 ward a degree or credential; and 

17 ‘‘(C) making progress on any other per18 formance measure identified by the Secretary. 

19 ‘‘(3) Goals for increasing postsecondary creden20 tial attainment by 2020 for traditionally underrep21 resented students. 

22 ‘‘(c) REVIEW AND APPROVAL.—Each State plan de23 veloped under this section shall be reviewed and approved 

24 by the Secretary. 

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1 ‘‘SEC. 796E. USE OF FUNDS. 

2 ‘‘(a) IN GENERAL.—A State receiving an implemen3 tation grant under this part shall use the funds to carry 

4 out any purpose included in the State’s comprehensive 

5 State plan described in section 796D. 

6 ‘‘(b) PROHIBITIONS.—Federal funds made available 

7 under this part shall not be used— 

8 ‘‘(1) to promote any lender’s loans; 

9 ‘‘(2) to supplement or supplant Federal, State, 

10 or institutional financial aid; or 

11 ‘‘(3) compensate for a decrease in State appro12 priations for higher education. 

13 ‘‘(c) SUFFICIENT PROGRESS.—If the Secretary deter14 mines, by the end of the third year of the grant, that a 

15 State receiving an implementation grant under this part 

16 is not making substantial progress on meeting the require17 ments of the comprehensive State plan under section 

18 796D and meeting the performance measures and targets 

19 described in section 796D(b)(2), the Secretary— 

20 ‘‘(1) shall cancel the grant; and 

21 ‘‘(2) may use any funds returned or made avail22 able due to a cancellation under paragraph (1) to— 

23 ‘‘(A) increase other grant awards under 

24 this part; or 

25 ‘‘(B) award new grants to other eligible en26 tities under this part. 

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1 ‘‘SEC. 796F. MATCHING AND OTHER FINANCIAL REQUIRE2 MENTS. 

3 ‘‘(a) MATCHING REQUIREMENTS.— 

4 ‘‘(1) IN GENERAL.—A State receiving a grant 

5 under this part shall provide matching funds toward 

6 the costs of the grant in the amount applicable 

7 under paragraph (2). 

8 ‘‘(2) AMOUNT OF MATCHING FUNDS.—The 

9 matching funds required under this paragraph shall 

10 be an amount equal to— 

11 ‘‘(A) in the case of a planning grant, 20 

12 percent of the amount of the grant for each 

13 year of the grant; and 

14 ‘‘(B) in the case of an implementation 

15 grant— 

16 ‘‘(i) 20 percent of such costs for the 

17 first year of the grant; 

18 ‘‘(ii) 30 percent of such costs for the 

19 second year of the grant; 

20 ‘‘(iii) 40 percent of such costs for the 

21 third year of the grant; 

22 ‘‘(iv) 50 percent of such costs for the 

23 fourth year the grant; and 

24 ‘‘(v) 60 percent of such for the fifth 

25 year of the grant. 

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1 ‘‘(3) IN CASH OR IN-KIND.—Matching funds 

2 provided under this subsection shall be from non3 Federal sources and may be provided in cash or in4 kind. 

5 ‘‘(b) SUPPLEMENT NOT SUPPLANT.—Federal fund6 ing provided under this part shall be used to supplement 

7 and not supplant other Federal, State, or institutional re8 sources that would otherwise be expended to carry out the 

9 activities described in this part. 

10 ‘‘(c) MAINTENANCE OF EFFORT.— 

11 ‘‘(1) IN GENERAL.—With respect to each fiscal 

12 year for which a State receives a grant under this 

13 part, the State will maintain State support for pub14 lic institutions of higher education (excluding sup15 port for capital projects, for research and develop16 ment, and for tuition and fees paid by students) at 

17 least at the level of such support for the previous fis18 cal year. 

19 ‘‘(2) FINANCIAL HARDSHIP WAIVER.—A State 

20 may apply to the Secretary for a waiver of, and the 

21 Secretary may waive, the requirements of paragraph 

22 (1) if the State is experiencing a financial hardship 

23 due to a natural disaster, unforeseen decline in the 

24 financial resources of the State, or other exceptional 

25 or uncontrollable circumstances. 

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1 ‘‘SEC. 796G. PERFORMANCE MEASURES. 

2 ‘‘The Secretary shall establish performance measures 

3 for the programs and activities carried out under grants 

4 awarded under this part prior to awarding grants under 

5 this part. The Secretary shall ensure that such measures 

6 are made available to potential applicants prior to seeking 

7 applications for grants under this section. 

8 ‘‘SEC. 796H. REPORTS; EVALUATIONS. 

9 ‘‘(a) REPORTS.— 

10 ‘‘(1) IMPLEMENTATION GRANTS.—A State that 

11 receives an implementation grant under this part 

12 shall submit to the Secretary, at such time and in 

13 such manner as the Secretary may require, an an14 nual report including, at a minimum— 

15 ‘‘(A) data on the State’s progress in 

16 achieving the targets for the annual perform17 ance measures established under section 796G; 

18 and 

19 ‘‘(B) a description of the challenges the 

20 State has faced in carrying out the implementa21 tion grant under this part, and how the State 

22 has addressed, or plans to address, such chal23 lenges. 

24 ‘‘(2) PLANNING GRANTS.—A State that receives 

25 a planning grant under this part shall submit to the 

26 Secretary, at such time and in such manner as the 

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1 Secretary may require, a report that includes a copy 

2 of the State plan developed under the grant. 

3 ‘‘(b) EVALUATION.—The Secretary shall— 

4 ‘‘(1) acting through the Director of the Insti5 tute of Education Sciences, evaluate the implementa6 tion and impact of activities supported under this 

7 part; and 

8 ‘‘(2) disseminate research on best practices. 

9 ‘‘SEC. 796I. AUTHORIZATION OF APPROPRIATIONS. 

10 ‘‘There are authorized to be appropriated to carry out 

11 this part such sums as may be necessary for fiscal year 

12 2015 and each of the following 4 fiscal years.’’. 

13 TITLE VIII—ADDITIONAL 

14 PROGRAMS 

15 SEC. 801. REORGANIZATION. 

16 Title VIII (20 U.S.C. 1161 et seq.) is amended— 

17 (1) by striking parts E, H, I, K, M, N, O, R, 

18 U, V, X, and Y; 

19 (2) by redesignating parts F, G, J, L, P, Q, S, 

20 T, W, Z, and AA as parts E, F, G, H, I, J, K, L, 

21 M, N, and O, respectively; and 

22 (3) by redesignating sections 851, 861, 872, 

23 873, 892, 895, 897, and 898 as sections 831, 836, 

24 841, 846, 851, 856, 861, and 862, respectively. 

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1 SEC. 802. AUTHORIZATION OF APPROPRIATIONS FOR 

2 PROJECT GRAD. 

3 Section 801(i) (20 U.S.C. 1161a(i)) is amended by 

4 striking ‘‘2009’’ and inserting ‘‘2015’’. 

5 SEC. 803. AUTHORIZATION OF APPROPRIATIONS FOR THE 

6 MATHEMATICS AND SCIENCE SCHOLARS 

7 PROGRAM. 

8 Section 802(f) (20 U.S.C. 1161b(f)) is amended by 

9 striking ‘‘2009’’ and inserting ‘‘2015’’. 

10 SEC. 804. COMMUNITY COLLEGE AND INDUSTRY PARTNER11 SHIPS PROGRAM. 

12 Part C of title VIII (20 U.S.C. 1161c et seq.) is 

13 amended to read as follows: 

14 ‘‘PART C—COMMUNITY COLLEGE AND INDUSTRY 

15 PARTNERSHIPS PROGRAM 

16 ‘‘SEC. 803. DEFINITIONS. 

17 ‘‘In this part: 

18 ‘‘(1) COMMUNITY COLLEGE.—The term ‘com19 munity college’ means a public institution of higher 

20 education as defined in section 102 of the Higher 

21 Education Act, where the highest degree offered is 

22 predominantly the associate’s degree. 

23 ‘‘(2) LOCAL BOARD.—The term ‘local board’ 

24 has the meaning given the term in section 3 of the 

25 Workforce Innovation and Opportunity Act. 

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1 ‘‘(3) NONTRADITIONAL STUDENT.—The term 

2 ‘nontraditional student’ means a student who is a 

3 low-income student and— 

4 ‘‘(A) who is an independent student, as de5 fined in section 480(d), or is an individual with 

6 a disability as defined in section 3 of the Ameri7 cans with Disabilities Act of 1990 (42 U.S.C. 

8 12102); 

9 ‘‘(B) who attends an institution of higher 

10 education— 

11 ‘‘(i) on less than a full-time basis; 

12 ‘‘(ii) via evening, weekend, modular, 

13 or compressed courses; or 

14 ‘‘(iii) via distance education methods; 

15 and 

16 ‘‘(C) who— 

17 ‘‘(i) enrolled for the first time in an 

18 institution of higher education 3 or more 

19 years after completing secondary school; or 

20 ‘‘(ii) is employed for not less than 25 

21 hours per week. 

22 ‘‘(4) RECOGNIZED POSTSECONDARY CREDEN23 TIAL.—The term ‘recognized postsecondary creden24 tial’ means a credential consisting of— 

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1 ‘‘(A) an industry-recognized certificate or 

2 certification; 

3 ‘‘(B) a certificate of completion of an ap4 prenticeship registered under the Act of August 

5 16, 1937 (commonly known as the ‘National 

6 Apprenticeship Act’; 50 Stat. 664, chapter 663; 

7 29 U.S.C. 50 et seq.), referred to as a ‘reg8 istered apprenticeship’ for the purpose of this 

9 part; 

10 ‘‘(C) a license recognized by the State in11 volved or the Federal Government; or 

12 ‘‘(D) an associate’s or baccalaureate de13 gree. 

14 ‘‘(5) SECRETARIES.—The term ‘Secretaries’ 

15 means the Secretary of Education and the Secretary 

16 of Labor. 

17 ‘‘(6) STATE BOARD.—The term ‘State board’ 

18 has the meaning given the term in section 3 of the 

19 Workforce Innovation and Opportunity Act. 

20 ‘‘SEC. 803A. COMMUNITY COLLEGE AND INDUSTRY PART21 NERSHIPS PROGRAM. 

22 ‘‘(a) GRANTS AUTHORIZED.—From funds appro23 priated under section 803C, the Secretaries, in accordance 

24 with the interagency agreement described in section 803B, 

25 shall award competitive grants to eligible entities described 

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1 in subsection (b) for the purpose of developing, offering, 

2 improving, or providing educational or career training pro3 grams. 

4 ‘‘(b) ELIGIBLE ENTITY.— 

5 ‘‘(1) PARTNERSHIPS WITH EMPLOYERS OR AN

6 EMPLOYER OR INDUSTRY PARTNERSHIP.—In order 

7 to be eligible for a grant under this section, an enti8 ty shall— 

9 ‘‘(A) be— 

10 ‘‘(i) a community college that will use 

11 funds provided under this section for ac12 tivities at the certificate and associate’s de13 gree levels; 

14 ‘‘(ii) a 4-year public institution of 

15 higher education that offers 2-year de16 grees, and that will use funds provided 

17 under this section for activities at the cer18 tificate and associate’s degree levels; 

19 ‘‘(iii) a Tribal College or University 

20 (as defined in section 316(b)); 

21 ‘‘(iv) a public or private nonprofit 2- 

22 year institution of higher education (as de23 fined in section 102) in the Commonwealth 

24 of Puerto Rico, Guam, the United States 

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1 monwealth of the Northern Mariana Is2 lands, or any of the Freely Associated 

3 States; or 

4 ‘‘(v) a consortium of entities described 

5 in any of clauses (i) through (iv); and 

6 ‘‘(B) for purposes of the grant, be in part7 nership with— 

8 ‘‘(i) an employer; or 

9 ‘‘(ii) an industry partnership rep10 resenting multiple employers. 

11 ‘‘(2) ADDITIONAL PARTNERS.— 

12 ‘‘(A) AUTHORIZATION OF ADDITIONAL

13 PARTNERS.—In addition to partnering with an 

14 entity described in paragraph (1)(B), an entity 

15 described in paragraph (1)(A) may include in 

16 the partnership 1 or more of the following enti17 ties: 

18 ‘‘(i) An adult education provider or 

19 institution of higher education. 

20 ‘‘(ii) A community-based organization 

21 with demonstrated expertise in serving 

22 non-traditional students or providing edu23 cation and training to workers or discon24 nected youth. 

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1 ‘‘(iii) A joint labor-management part2 nership. 

3 ‘‘(iv) A State board or local board. 

4 ‘‘(v) Any other organization that the 

5 Secretaries consider appropriate. 

6 ‘‘(B) COLLABORATION WITH STATE AND

7 LOCAL BOARDS.—An eligible entity shall col8 laborate with the State board or local board, as 

9 appropriate, in the area served by the eligible 

10 entity. 

11 ‘‘(c) APPLICATION.—An eligible entity seeking a 

12 grant under this section shall submit an application to the 

13 Secretaries at such time and containing such information 

14 as the Secretaries determine is required, including a de15 tailed description of— 

16 ‘‘(1) the specific educational or career training 

17 program that the eligible entity proposes and how 

18 the program meets the criteria established under 

19 subsection (d), including the manner in which the 

20 grant will be used to develop, offer, improve, or pro21 vide the educational or career training program; 

22 ‘‘(2) the extent to which the program will meet 

23 the educational or career training needs of workers 

24 in the area served by the eligible entity; 

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1 ‘‘(3) the extent to which the program will meet 

2 the skill needs of employers in the area for workers 

3 in in-demand industry sectors and occupations; 

4 ‘‘(4) the extent to which the proposed program 

5 fits within any overall strategic plan regarding edu6 cation and training developed by the eligible entity; 

7 ‘‘(5)(A) any previous experience of the eligible 

8 entity in providing educational or career training 

9 programs, including the use of research-based mod10 els to provide such programs; or 

11 ‘‘(B) in the case of an eligible entity without 

12 previous experience, a detailed description of how 

13 the entity will carry out the activities required under 

14 the grant, including the research-based model the 

15 entity plans to use to provide such programs; 

16 ‘‘(6) the recognized postsecondary credentials 

17 that participants in the proposed educational or ca18 reer training program will obtain, and how the pro19 gram meets quality criteria for programs leading to 

20 such credentials, as established by the Governor of 

21 a State in which at least 1 of the entities described 

22 in subsection (b)(1)(A) that comprise the eligible en23 tity is located; 

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1 ‘‘(7) how the eligible entity will sustain the edu2 cational or career training program after the end of 

3 grant period; 

4 ‘‘(8) how any educational or career training 

5 program developed under this grant will be coordi6 nated with existing education and training pro7 grams, as of the date of the application, in the rel8 evant State and region that are supported by Fed9 eral, State, or other funds; and 

10 ‘‘(9) how the eligible entity will measure the 

11 performance of, and evaluate, the educational or ca12 reer training program to be supported by this grant, 

13 including the performance outcomes to be used by 

14 the eligible entity and an assurance that such entity 

15 will provide the information requested by the Secre16 taries for evaluations and reports under subsection 

17 (f). 

18 ‘‘(d) CRITERIA FOR AWARD.— 

19 ‘‘(1) IN GENERAL.—Grants under this section 

20 shall be awarded based on criteria established by the 

21 Secretaries that include the following: 

22 ‘‘(A) A determination of the merits of the 

23 proposal, in each application, to develop, offer, 

24 improve, or provide an educational or career 

25 training program. In making such a determinamstockstill on DSK4VPTVN1PROD with BILLS

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1 tion, the Secretaries shall not automatically dis2 qualify an eligible entity because of the absence 

3 of previous experience described in subsection 

4 (c)(5)(A). 

5 ‘‘(B) An assessment of the current and 

6 projected employment opportunities available 

7 (as of the date of the application) in the area 

8 to individuals who complete an educational or 

9 career training program that the eligible entity 

10 proposes to develop, offer, improve, or provide. 

11 ‘‘(C) An assessment of prior demand for 

12 training programs by individuals eligible for 

13 training and served by the eligible entity, as 

14 well as availability and capacity of existing (as 

15 of the date of the assessment) training pro16 grams to meet future demand for training pro17 grams. 

18 ‘‘(2) PRIORITY.—In awarding grants under this 

19 section, the Secretaries shall give priority to eligible 

20 entities that— 

21 ‘‘(A) are in a partnership with an employer 

22 or an industry partnership that— 

23 ‘‘(i) agrees to pay a portion of the 

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1 reer training programs supported under 

2 the grant; or 

3 ‘‘(ii) agrees to hire individuals who 

4 have attained a recognized postsecondary 

5 credential resulting from the educational or 

6 career training program supported under 

7 the grant; 

8 ‘‘(B) enter into a partnership with a labor 

9 organization, labor-management training pro10 gram, or registered apprenticeship program, to 

11 provide, through the educational or career 

12 training program, technical expertise for occu13 pationally specific education necessary for a rec14 ognized postsecondary credential leading to a 

15 skilled occupation in an in-demand industry sec16 tor; 

17 ‘‘(C) demonstrate a partnership with a 

18 State board or local board, as appropriate; 

19 ‘‘(D) are focused on serving individuals 

20 with barriers to employment, youth who are 

21 out-of-school or not in the workforce, low-in22 come, nontraditional students, students who are 

23 dislocated workers, students who are veterans, 

24 or students who are long-term unemployed; 

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1 ‘‘(E) include community colleges serving 

2 areas with high unemployment rates, including 

3 rural areas and areas with high unemployment 

4 rates for youth; 

5 ‘‘(F) are eligible entities that include an 

6 institution of higher education eligible for as7 sistance under title III or V; or 

8 ‘‘(G) are in a partnership, with an em9 ployer or industry partnership, that increases 

10 domestic production of goods, such as advanced 

11 manufacturing or production of clean energy 

12 technology. 

13 ‘‘(e) USE OF FUNDS.—Grant funds awarded under 

14 this section shall be used for 1 or more of the following: 

15 ‘‘(1) The development, offering, improvement, 

16 or provision of educational or career training pro17 grams that— 

18 ‘‘(A) provide relevant job training for occu19 pations that will meet the needs of employers in 

20 in-demand industry sectors; and 

21 ‘‘(B) may include registered apprenticeship 

22 programs, on-the-job training programs, and 

23 programs that support employers in upgrading 

24 the skills of their workforce. 

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1 ‘‘(2) The development and implementation of 

2 policies and programs to expand opportunities for 

3 students to earn a recognized postsecondary creden4 tial, including a degree, in in-demand industry sec5 tors or occupations, including by— 

6 ‘‘(A) facilitating the transfer of academic 

7 credits between institutions of higher education 

8 in the State, including the transfer of academic 

9 credits for courses in the same field of study; 

10 ‘‘(B) expanding articulation agreements 

11 and policies that guarantee transfers between 

12 such institutions, including through common 

13 course numbering and use of a general core 

14 curriculum; and 

15 ‘‘(C) developing or enhancing student sup16 port services programs. 

17 ‘‘(3) The creation or enhancement of programs 

18 that provide a sequence or integration of education 

19 and occupational training that leads to a recognized 

20 postsecondary credential, including a degree, includ21 ing programs that— 

22 ‘‘(A) provide adult education and literacy 

23 activities concurrently and contextually with oc24 cupational training, and support services for 

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1 participants, which may include such activities 

2 and services provided along a career pathway; 

3 ‘‘(B) facilitate means of transitioning par4 ticipants from non-credit occupational, adult 

5 education, or developmental coursework to for6 credit coursework within and across institu7 tions; 

8 ‘‘(C) build or enhance linkages, including 

9 the development of dual enrollment programs 

10 and early college high schools, between sec11 ondary education or adult education programs 

12 (including programs established under the Carl 

13 D. Perkins Career and Technical Education Act 

14 of 2006 (20 U.S.C. 2301 et seq.) and the Adult 

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

16 9201 et seq.)); 

17 ‘‘(D) are innovative programs designed to 

18 increase the provision of training for students, 

19 including students who are members of the Na20 tional Guard or Reserves, to enter occupations 

21 in in-demand industry sectors; or 

22 ‘‘(E) support paid internships that will 

23 allow students to simultaneously earn postsec24 ondary credit and gain relevant employment ex25 perience in an in-demand industry sector or ocmstockstill on DSK4VPTVN1PROD with BILLS

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1 cupation through work-based learning, which 

2 shall include opportunities that transition indi3 viduals into employment. 

4 ‘‘(4) The support of skills consortia in an in-de5 mand industry sector that will identify pressing 

6 workforce needs and develop solutions such as— 

7 ‘‘(A) standardizing industry certifications; 

8 ‘‘(B) developing new training technologies; 

9 and 

10 ‘‘(C) collaborating with industry employers 

11 to define and describe how specific skills lead to 

12 particular jobs and career opportunities. 

13 ‘‘(f) EVALUATIONS AND REPORTS.— 

14 ‘‘(1) ANNUAL REPORTS TO SECRETARIES.— 

15 ‘‘(A) IN GENERAL.—Each eligible entity 

16 receiving a grant under this section shall sub17 mit to the Secretaries an annual report regard18 ing the activities carried out under the grant, 

19 including the progress made by the educational 

20 or career training program with respect to the 

21 performance outcomes described in subsection 

22 (c)(9) and any other information the Secre23 taries may require. 

24 ‘‘(B) DISAGGREGATION.—The data pro25 vided to the Secretaries in accordance with this 

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1 subsection shall be disaggregated by, at a min2 imum, race, ethnicity, and eligibility to receive 

3 a Federal Pell Grant, except that such 

4 disaggregation shall not be required when the 

5 number of participants in a category is insuffi6 cient to yield statistically reliable information or 

7 when the results would reveal personally identi8 fiable information about an individual partici9 pant. 

10 ‘‘(2) EVALUATIONS.—The Secretaries shall, di11 rectly or by contract, conduct an annual evaluation 

12 of the grant program carried out under this section, 

13 which will include a determination of the progress 

14 made by each educational or career training pro15 gram supported by the grant with respect to the per16 formance outcomes described in subsection (c)(9), 

17 using the reports provided by the eligible entities 

18 under paragraph (1) and any other information that 

19 the Secretaries request from the eligible entities for 

20 purposes of the evaluation. 

21 ‘‘(3) REPORTS TO CONGRESS.—The Secretaries 

22 shall jointly develop and submit a biennial report to 

23 the authorizing committees regarding the grants 

24 awarded under this section and the outcomes of such 

25 grants, including the progress made by each edumstockstill on DSK4VPTVN1PROD with BILLS

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1 cational or career training program supported under 

2 such grant with respect to the performance outcomes 

3 described in subsection (c)(9) and the results of the 

4 evaluations described in paragraph (2). 

5 ‘‘SEC. 803B. INTERAGENCY AGREEMENT. 

6 ‘‘(a) IN GENERAL.—The Secretary of Labor and the 

7 Secretary of Education shall jointly develop policies for the 

8 administration of this part in accordance with such terms 

9 as the Secretaries shall set forth in an interagency agree10 ment. Such interagency agreement, at a minimum, shall 

11 include a description of the respective roles and respon12 sibilities of the Secretaries in carrying out this part (both 

13 jointly and separately), including— 

14 ‘‘(1) how the funds available under this part 

15 will be obligated and disbursed and compliance with 

16 applicable laws (including regulations) will be en17 sured, as well as how the recipients of the grants 

18 will be selected and monitored; 

19 ‘‘(2) how evaluations and research will be con20 ducted on the effectiveness of grants awarded under 

21 this part in addressing the education and employ22 ment needs of workers, and employers; 

23 ‘‘(3) how technical assistance will be provided 

24 to applicants and grant recipients; 

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1 ‘‘(4) how information will be disseminated, in2 cluding through electronic means, on best practices 

3 and effective strategies and service delivery models 

4 for activities carried out under this part; and 

5 ‘‘(5) how policies and processes critical to the 

6 successful achievement of the education, training, 

7 and employment goals of this part will be estab8 lished. 

9 ‘‘(b) TRANSFER AUTHORITY.—The Secretary of 

10 Labor and the Secretary of Education shall have the au11 thority to transfer funds between the Department of 

12 Labor and the Department of Education to carry out this 

13 part in accordance with the agreement described in sub14 section (a). 

15 ‘‘SEC. 803C. AUTHORIZATION OF APPROPRIATIONS. 

16 ‘‘There are authorized to be appropriated such sums 

17 as may be necessary to carry out this part for fiscal year 

18 2015 and each of the 4 succeeding fiscal years.’’. 

19 SEC. 805. AUTHORIZATION OF APPROPRIATIONS FOR CA20 PACITY FOR NURSING STUDENTS AND FAC21 ULTY. 

22 Section 804(f) (20 U.S.C. 1161d(f)) is amended by 

23 striking ‘‘2009’’ and inserting ‘‘2015’’. 

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1 SEC. 806. AUTHORIZATION OF APPROPRIATIONS FOR 

2 TEACH FOR AMERICA. 

3 Section 806(f) (20 U.S.C. 1161f(f)) is amended by 

4 striking paragraph (1) and inserting the following: 

5 ‘‘(1) IN GENERAL.—For the purpose of car6 rying out this section, there are authorized to be ap7 propriated such sums as may be necessary for fiscal 

8 year 2015 and each of the five succeeding fiscal 

9 years.’’. 

10 SEC. 807. AUTHORIZATION OF APPROPRIATIONS FOR THE 

11 PATSY T. MINK FELLOWSHIP PROGRAM. 

12 Section 807(f) (20 U.S.C. 1161g(f)) is amended by 

13 striking ‘‘2009’’ and inserting ‘‘2015’’. 

14 SEC. 808. AUTHORIZATION OF APPROPRIATIONS FOR IM15 PROVING SCIENCE, TECHNOLOGY, ENGI16 NEERING, AND MATHEMATICS EDUCATION 

17 WITH A FOCUS ON ALASKA NATIVE AND NA18 TIVE HAWAIIAN STUDENTS. 

19 Section 819(i) (20 U.S.C. 1161j(i)) is amended by 

20 striking ‘‘2009’’ and inserting ‘‘2015’’. 

21 SEC. 809. AUTHORIZATION OF APPROPRIATIONS FOR STU22 DENT SAFETY AND CAMPUS EMERGENCY 

23 MANAGEMENT. 

24 Section 821(f) (20 U.S.C. 1161l(f)) is amended by 

25 striking ‘‘2009’’ and inserting ‘‘2015’’. 

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1 SEC. 810. AUTHORIZATION OF APPROPRIATIONS FOR THE 

2 EDUCATION DISASTER AND EMERGENCY RE3 LIEF PROGRAM. 

4 Section 824(i) (20 U.S.C. 1161l–3(i)) is amended by 

5 striking ‘‘2009’’ and inserting ‘‘2015’’. 

6 SEC. 811. AUTHORIZATION OF APPROPRIATIONS FOR THE 

7 JOBS TO CAREERS PROGRAM. 

8 Section 831(j), as redesignated by paragraph (3) of 

9 section 801 (20 U.S.C. 1161p(j)), is amended by striking 

10 ‘‘2009’’ and inserting ‘‘2015’’. 

11 SEC. 812. AUTHORIZATION OF APPROPRIATIONS FOR 

12 RURAL DEVELOPMENT GRANTS FOR RURAL13 SERVING COLLEGES AND UNIVERSITIES. 

14 Section 861(g), as redesignated by paragraph (3) of 

15 section 801 (20 U.S.C. 1161q(g)), is amended by striking 

16 ‘‘2009’’ and inserting ‘‘2015’’. 

17 SEC. 813. AUTHORIZATION OF APPROPRIATIONS FOR 

18 TRAINING FOR REALTIME WRITERS. 

19 Section 841(e), as redesignated by paragraph (3) of 

20 section 801 (20 U.S.C. 1161s(e)), is amended by striking 

21 ‘‘2009’’ and inserting ‘‘2015’’. 

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1 SEC. 814. AUTHORIZATION OF APPROPRIATIONS FOR CEN2 TERS OF EXCELLENCE FOR VETERAN STU3 DENT SUCCESS. 

4 Section 846(f), as redesignated by paragraph (3) of 

5 section 801 (20 U.S.C. 1161t(f)), is amended by striking 

6 ‘‘2009’’ and inserting ‘‘2015’’. 

7 SEC. 815. AUTHORIZATION OF APPROPRIATIONS FOR PATH 

8 TO SUCCESS. 

9 Section 851(g), as redesignated by paragraph (3) of 

10 section 801 (20 U.S.C. 1161w(g)), is amended by striking 

11 ‘‘2009’’ and inserting ‘‘2015’’. 

12 SEC. 816. AUTHORIZATION OF APPROPRIATIONS FOR THE 

13 HENRY KUUALOHA GIUGNI KUPUNA MEMO14 RIAL ARCHIVES. 

15 Section 856(c), as redesignated by paragraph (3) of 

16 section 801 (20 U.S.C. 1161z(c)), is amended by striking 

17 ‘‘2009’’ and inserting ‘‘2015’’. 

18 SEC. 817. APPROPRIATIONS FOR MASTERS DEGREE PRO19 GRAMS. 

20 Section 861 as redesignated by paragraph (3) of sec21 tion 801 (20 U.S.C. 1161aa), is amended by striking 

22 ‘‘$11,500,000 for fiscal year 2009’’ and inserting ‘‘such 

23 sums as may be necessary for fiscal year 2015’’. 

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1 SEC. 818. APPROPRIATIONS FOR POSTBACCALAUREATE 

2 PROGRAMS. 

3 Section 862 as redesignated by paragraph (3) of sec4 tion 801 (20 U.S.C. 1161aa–1), is amended by striking 

5 ‘‘$11,500,000 for fiscal year 2009’’ and inserting ‘‘such 

6 sums as may be necessary for fiscal year 2015’’. 

7 SEC. 819. TYLER CLEMENTI PROGRAM. 

8 Title VIII (20 U.S.C. 1161 et seq.), as amended by 

9 section 801, is further amended by adding at the end the 

10 following: 

11 ‘‘PART P—TYLER CLEMENTI PROGRAM 

12 ‘‘SEC. 864. TYLER CLEMENTI PROGRAM. 

13 ‘‘(a) DEFINITIONS.—In this section: 

14 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en15 tity’ means— 

16 ‘‘(A) an institution of higher education, in17 cluding an institution of higher education in a 

18 collaborative partnership with a nonprofit orga19 nization; or 

20 ‘‘(B) a consortium of institutions of higher 

21 education located in the same State. 

22 ‘‘(2) HARASSMENT.—The term ‘harassment’ 

23 has the meaning given the term in section 

24 485(f)(6)(A). 

25 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au26 thorized to award grants, on a competitive basis, to eligible 

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1 entities to enable eligible entities to carry out the author2 ized activities described in subsection (d). 

3 ‘‘(c) AMOUNT OF GRANT AWARDS.—The Secretary 

4 shall ensure that each grant awarded under this section 

5 is of sufficient amount to enable the grantee to meet the 

6 purpose of this section. 

7 ‘‘(d) AUTHORIZED ACTIVITIES.—An eligible entity 

8 that receives a grant under this section shall use the funds 

9 made available through the grant to address 1 or more 

10 of the types of harassment listed in section 

11 485(f)(6)(A)(vi) by initiating, expanding, or improving 

12 programs— 

13 ‘‘(1) to prevent the harassment of students at 

14 institutions of higher education; 

15 ‘‘(2) at institutions of higher education that 

16 provide counseling or redress services to students 

17 who have suffered such harassment or students who 

18 have been accused of subjecting other students to 

19 such harassment; or 

20 ‘‘(3) that educate or train students, faculty, or 

21 staff of institutions of higher education about ways 

22 to prevent harassment or ways to address such har23 assment if it occurs. 

24 ‘‘(e) APPLICATION.—To be eligible to receive a grant 

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1 cation to the Secretary at such time, in such manner, and 

2 containing such information, as the Secretary may re3 quire. 

4 ‘‘(f) DURATION; RENEWAL.—A grant under this sec5 tion shall be awarded for a period of not more than 3 

6 years. The Secretary may renew a grant under this section 

7 for 1 additional period of not more than 2 years. 

8 ‘‘(g) AWARD CONSIDERATIONS.—In awarding a 

9 grant under this section, the Secretary shall select eligible 

10 entities that demonstrate the greatest need for a grant 

11 and the greatest potential benefit from receipt of a grant. 

12 ‘‘(h) REPORT AND EVALUATION.— 

13 ‘‘(1) EVALUATION AND REPORT TO THE SEC14 RETARY.—Not later than 6 months after the end of 

15 the eligible entity’s grant period, the eligible entity 

16 shall— 

17 ‘‘(A) evaluate the effectiveness of the ac18 tivities carried out with the use of funds award19 ed pursuant to this section in decreasing har20 assment and improving tolerance; and 

21 ‘‘(B) prepare and submit to the Secretary 

22 a report on the results of the evaluation con23 ducted by the entity. 

24 ‘‘(2) EVALUATION AND REPORT TO CON25 GRESS.—Not later than 12 months after the date of 

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1 receipt of the first report submitted pursuant to 

2 paragraph (1) and annually thereafter, the Secretary 

3 shall provide to Congress a report that includes the 

4 following: 

5 ‘‘(A) The number and types of eligible en6 tities receiving assistance under this section. 

7 ‘‘(B) The anti-harassment programs being 

8 implemented with assistance under this section 

9 and the costs of such programs. 

10 ‘‘(C) Any other information determined by 

11 the Secretary to be useful in evaluating the 

12 overall effectiveness of the program established 

13 under this section in decreasing incidents of 

14 harassment at institutions of higher education. 

15 ‘‘(3) BEST PRACTICES REPORT.—The Secretary 

16 shall use the information provided under paragraph 

17 (1) to publish a report of best practices for com18 bating harassment at institutions of higher edu19 cation. The report shall be made available to all in20 stitutions of higher education and other interested 

21 parties. 

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

23 are authorized to be appropriated to carry out this section 

24 such sums as may be necessary for fiscal year 2015 and 

25 each of the 4 succeeding fiscal years.’’. 

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1 TITLE IX—HIGHER EDUCATION 

2 OPPORTUNITIES AND SUP3 PORTS FOR STUDENTS WITH 

4 DISABILITIES 

5 SEC. 901. HIGHER EDUCATION OPPORTUNITIES AND SUP6 PORTS FOR STUDENTS WITH DISABILITIES. 

7 The Act (20 U.S.C. 1001 et seq.) is amended by add8 ing at the end the following: 

9 ‘‘TITLE IX—HIGHER EDUCATION 

10 OPPORTUNITIES AND SUP11 PORTS FOR STUDENTS WITH 

12 DISABILITIES 

13 ‘‘PART A—NATIONAL ACTIVITIES 

14 ‘‘SEC. 901. NATIONAL TECHNICAL ASSISTANCE CENTERS 

15 FOR HIGHER EDUCATION ACCESS. 

16 ‘‘(a) PURPOSE.—It is the purpose of this section to 

17 provide technical assistance and information— 

18 ‘‘(1) about the rights and responsibilities of 

19 postsecondary students with disabilities under the 

20 Americans with Disabilities Act of 1990 (42 U.S.C. 

21 12101 et seq.) and the Rehabilitation Act of 1973 

22 (29 U.S.C. 701 et seq.); and 

23 ‘‘(2) to support the recruitment, enrollment, re24 tention, graduation, and education of such students. 

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1 ‘‘(b) ADMINISTRATION.—The activities under this 

2 section shall be jointly administered by the Office of Post3 secondary Education and the Office of Special Education 

4 and Rehabilitative Services. 

5 ‘‘(c) NATIONAL TECHNICAL ASSISTANCE CENTER

6 FOR COLLEGE STUDENTS WITH DISABILITIES AND

7 THEIR FAMILIES.— 

8 ‘‘(1) IN GENERAL.—From amounts appro9 priated to carry out this section, the Secretary shall 

10 award a grant to, or enter into a contract or cooper11 ative agreement with, an eligible entity to provide 

12 for the establishment and support of a National 

13 Technical Assistance Center for College Students 

14 With Disabilities and Their Families (hereafter re15 ferred to as the ‘National Center for Students With 

16 Disabilities’). The National Center for Students 

17 With Disabilities shall carry out the duties set forth 

18 in paragraph (3). 

19 ‘‘(2) ELIGIBLE ENTITY.—In this subsection, the 

20 term ‘eligible entity’ means an institution of higher 

21 education, a nonprofit organization, or a partnership 

22 of 2 or more such institutions or organizations, with 

23 demonstrated expertise in— 

24 ‘‘(A) the recruitment, enrollment, reten25 tion, graduation, and education of students with 

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1 disabilities, including students with autism 

2 spectrum disorder and other developmental dis3 abilities, in postsecondary education; 

4 ‘‘(B) the technical knowledge necessary for 

5 the dissemination of information in accessible 

6 formats; and 

7 ‘‘(C) creating and disseminating convenient 

8 and credible online resources. 

9 ‘‘(3) DUTIES.—The National Center for Stu10 dents With Disabilities shall provide information and 

11 technical assistance to postsecondary students with 

12 disabilities and the families of postsecondary stu13 dents with disabilities to support students across the 

14 broad spectrum of disabilities, including individuals 

15 with autism spectrum disorder and other develop16 mental disabilities, which may include providing— 

17 ‘‘(A) information to assist individuals with 

18 disabilities who are prospective students of an 

19 institution of higher education in planning for 

20 postsecondary education while in secondary 

21 school, and earlier; 

22 ‘‘(B) information and technical assist23 ance— 

24 ‘‘(i) including self-advocacy skills, to 

25 individualized education program teams (as 

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1 defined in section 614(d)(1) of the Individ2 uals with Disabilities Education Act) for 

3 secondary school students with disabilities; 

4 and 

5 ‘‘(ii) to early outreach and student 

6 services programs to support students 

7 across a broad spectrum of disabilities with 

8 the successful transition to postsecondary 

9 education; 

10 ‘‘(C) information on evidence-based sup11 ports, services, and accommodations that are 

12 available in postsecondary settings, including 

13 services such as vocational rehabilitation that 

14 are provided by other agencies, and providing 

15 information about how to qualify for those serv16 ices; 

17 ‘‘(D) information on student mentoring 

18 and networking opportunities for students with 

19 disabilities; 

20 ‘‘(E) information on effective recruitment 

21 and transition programs at postsecondary edu22 cational institutions; and 

23 ‘‘(F) information on support (including 

24 tuition, as appropriate) for advanced training in 

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1 matics (including computer science) field, medi2 cine, law, or business. 

3 ‘‘(d) NATIONAL TECHNICAL ASSISTANCE CENTER

4 FOR DISABILITY SUPPORT SERVICES AT INSTITUTIONS

5 OF HIGHER EDUCATION.— 

6 ‘‘(1) IN GENERAL.—From amounts appro7 priated to carry out this section, the Secretary shall 

8 award a grant to, or enter into a contract or cooper9 ative agreement with, an eligible entity to provide 

10 for the establishment and support of a National 

11 Technical Assistance Center for Disability Support 

12 Services at Institutions of Higher Education (here13 after referred to as the ‘National Center for Institu14 tions of Higher Education’). The National Center 

15 for Institutions of Higher Education shall carry out 

16 the duties set forth in paragraph (3). 

17 ‘‘(2) ELIGIBLE ENTITY.—In this subsection, the 

18 term ‘eligible entity’ means an institution of higher 

19 education, a nonprofit organization, or a partnership 

20 of 2 or more such institutions or organizations, with 

21 demonstrated expertise in— 

22 ‘‘(A) the recruitment, enrollment, reten23 tion, graduation, and education of students with 

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1 ing students with autism spectrum disorder and 

2 other developmental disabilities; 

3 ‘‘(B) supporting faculty and understanding 

4 best practices in working with students with 

5 disabilities, including students with autism 

6 spectrum disorder and other developmental dis7 abilities; 

8 ‘‘(C) technical knowledge necessary for the 

9 dissemination of information in accessible for10 mats; and 

11 ‘‘(D) identifying instructional strategies 

12 that are effective for students with disabilities, 

13 including students with autism spectrum dis14 order and other developmental disabilities. 

15 ‘‘(3) DUTIES.—The National Center for Insti16 tutions of Higher Education shall provide informa17 tion and technical assistance to faculty, staff, and 

18 administrators of institutions of higher education to 

19 improve the services provided to, the accommoda20 tions for, the retention rates of, and the completion 

21 rates of, students with disabilities, including stu22 dents with autism spectrum disorder and other de23 velopmental disabilities, in higher education settings, 

24 which may include— 

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1 ‘‘(A) collecting, developing, and dissemi2 nating quality indicators and best and prom3 ising practices and materials for accommo4 dating and supporting students with disabilities; 

5 ‘‘(B) training and supporting students 

6 with disabilities to enhance and support their 

7 self-advocacy skills; 

8 ‘‘(C) promoting awareness of, and the use 

9 of, assistive technology and augmentative com10 munication in postsecondary education settings; 

11 ‘‘(D) developing and providing training 

12 modules for higher education faculty and staff 

13 on exemplary practices for accommodating and 

14 supporting postsecondary students with disabil15 ities across a range of academic fields, which 

16 may include universal design for learning; 

17 ‘‘(E) developing technology-based tutorials 

18 for higher education faculty and staff, including 

19 new faculty and graduate students, on evidence20 based best and promising practices related to 

21 support and retention of students with disabil22 ities in postsecondary education; 

23 ‘‘(F) developing and providing training and 

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1 dence-based best practices for the selection, 

2 production, and timely delivery of high-quality 

3 accessible instructional materials to meet the 

4 needs of students with disabilities in postsec5 ondary settings; 

6 ‘‘(G) developing and disseminating an evi7 dence-based operational model for institutions 

8 of higher education to timely provide high-qual9 ity accessible instructional materials to students 

10 with disabilities; and 

11 ‘‘(H) information on providing support (in12 cluding tuition, as appropriate) for advanced 

13 training in a science, technology, engineering, 

14 or mathematics (including computer science) 

15 field, medicine, law, or business. 

16 ‘‘SEC. 902. NATIONAL DATA CENTER ON HIGHER EDU17 CATION AND DISABILITY. 

18 ‘‘(a) PURPOSE.—It is the purpose of this section to 

19 collect, maintain, and disseminate data and information 

20 about the experiences and outcomes of postsecondary edu21 cation students with disabilities. 

22 ‘‘(b) NATIONAL DATA CENTER.— 

23 ‘‘(1) IN GENERAL.—From amounts appro24 priated to carry out this section, the Secretary shall 

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1 ative agreement with, an eligible entity to provide 

2 for the establishment and support of a National 

3 Data Center on Higher Education and Disability (in 

4 this part referred to as the ‘National Data Center’). 

5 The National Data Center shall carry out the duties 

6 set forth in paragraph (4). 

7 ‘‘(2) ADMINISTRATION.—The program under 

8 this section shall be jointly administered by the Of9 fice of Postsecondary Education and the Office of 

10 Special Education and Rehabilitative Services. 

11 ‘‘(3) ELIGIBLE ENTITY.—In this section, the 

12 term ‘eligible entity’ means an institution of higher 

13 education, a nonprofit organization, or a partnership 

14 of 2 or more such institutions or organizations, with 

15 demonstrated expertise in— 

16 ‘‘(A) supporting students with disabilities 

17 in postsecondary education; 

18 ‘‘(B) technical knowledge necessary for the 

19 dissemination of information in accessible for20 mats; and 

21 ‘‘(C) working with diverse types of institu22 tions of higher education, including community 

23 colleges. 

24 ‘‘(4) DUTIES.—The duties of the National Data 

25 Center shall include the following: 

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1 ‘‘(A) INFORMATION COLLECTION AND DIS2 SEMINATION.— 

3 ‘‘(i) DATABASE.—The National Data 

4 Center shall be responsible for using the 

5 data submitted in accordance with section 

6 903— 

7 ‘‘(I) to build, maintain, and up8 date a database of information about 

9 disability support services provided by 

10 institutions of higher education; or 

11 ‘‘(II) to expand and update any 

12 existing database containing such in13 formation. 

14 ‘‘(ii) CONTENTS OF DATABASE.—The 

15 database described in clause (i) shall con16 tain de-identified, individual student-level 

17 data for every student who discloses the 

18 student’s disability to, and seeks disability 

19 accommodations from, the institution of 

20 higher education that the student attends, 

21 including— 

22 ‘‘(I) the student’s disability cat23 egory described in section 903(a); 

24 ‘‘(II) the supports and accom25 modations provided to the student; 

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1 ‘‘(III) enrollment information, in2 cluding the student’s program of 

3 study, progress toward completion of 

4 a certificate or degree, and program 

5 completion status; and 

6 ‘‘(IV) information about the stu7 dent’s employment or further edu8 cation for the 5 years following com9 pletion of the student’s program of 

10 study. 

11 ‘‘(iii) INFORMATION FOR EACH INSTI12 TUTION OF HIGHER EDUCATION.—In addi13 tion to the data described in clause (ii), 

14 such database shall include, for each insti15 tution of higher education required to sub16 mit information in accordance with section 

17 903— 

18 ‘‘(I) the institution’s— 

19 ‘‘(aa) disability documenta20 tion requirements; 

21 ‘‘(bb) support services that 

22 are available for students with 

23 disabilities; 

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1 ‘‘(cc) policies on accom2 modations for students with dis3 abilities; and 

4 ‘‘(dd) accessible instruc5 tional materials; 

6 ‘‘(II) regularly updated reports 

7 regarding the students with disabil8 ities who sought disability accom9 modations through the institution’s 

10 disability support services office, in11 cluding information about the services 

12 received by such students; 

13 ‘‘(III) other information relevant 

14 to students with disabilities, as deter15 mined by the Secretary; and 

16 ‘‘(IV) the information described 

17 in subparagraphs (A) through (D) of 

18 paragraph (5). 

19 ‘‘(iv) WEBSITE.—The National Data 

20 Center shall make available to the general 

21 public, through a website that is built to 

22 high technical standards of accessibility 

23 practicable for the broad spectrum of indi24 viduals with disabilities— 

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1 ‘‘(I) the data described in clause 

2 (ii), aggregated at the institution 

3 level; 

4 ‘‘(II) the information described in 

5 clause (iii); and 

6 ‘‘(III) links to information about 

7 student financial aid, including Fed8 eral and institutional student aid. 

9 ‘‘(B) DISABILITY SUPPORT SERVICES.— 

10 The National Data Center shall work with or11 ganizations and individuals that have proven ex12 pertise related to disability support services for 

13 postsecondary students with disabilities to 

14 evaluate, improve, and disseminate information 

15 related to the delivery of high-quality disability 

16 support services at institutions of higher edu17 cation. 

18 ‘‘(5) REVIEW AND REPORT.—Not later than 3 

19 years after the establishment of the National Data 

20 Center, and every 2 years thereafter, the National 

21 Center shall prepare and disseminate a report to the 

22 Secretary and the authorizing committees of Con23 gress analyzing the condition of postsecondary serv24 ices and success for students with disabilities. Such 

25 report shall include— 

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1 ‘‘(A) a review of the activities and the ef2 fectiveness of the programs authorized under 

3 this part; 

4 ‘‘(B) annual enrollment, retention, and 

5 graduation rates of students with disabilities in 

6 institutions of higher education that receive 

7 funds under title IV, disaggregated by disability 

8 according to the categories established under 

9 section 903(a) (unless disaggregation results in 

10 possible identification of a student); 

11 ‘‘(C) recommendations for effective post12 secondary supports and services for students 

13 with disabilities, and how such supports and 

14 services may be widely implemented at institu15 tions of higher education; 

16 ‘‘(D) recommendations on reducing bar17 riers to full participation for students with dis18 abilities in higher education; and 

19 ‘‘(E) a description of disability support 

20 services and strategies with a demonstrated 

21 record of effectiveness in improving the success 

22 of such students in postsecondary education. 

23 ‘‘(6) STAFFING OF THE NATIONAL DATA CEN24 TER.—In hiring employees of the National Data 

25 Center, the National Data Center shall consider the 

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1 expertise and experience of prospective employees in 

2 creating and maintaining high quality national data3 bases focused on the experiences and outcomes of in4 dividuals with disabilities. 

5 ‘‘SEC. 903. REQUIREMENT FOR SUBMITTING DATA TO THE 

6 NATIONAL DATA CENTER. 

7 ‘‘(a) DISABILITY CATEGORIES.—The National Data 

8 Center, the National Center for Students With Disabil9 ities, and the National Center for Institutions of Higher 

10 Education shall adopt the following categories to describe 

11 data collected, analyzed, and disseminated about students 

12 with disabilities: 

13 ‘‘(1) Attention Deficit Hyperactivity Disorder 

14 (ADHD). 

15 ‘‘(2) Autism, including Asperger Syndrome. 

16 ‘‘(3) Blind or visually impaired. 

17 ‘‘(4) Brain Injury, including acquired brain in18 jury and traumatic brain injury. 

19 ‘‘(5) Deaf or hard of hearing. 

20 ‘‘(6) Deaf-blind. 

21 ‘‘(7) Intellectual disability. 

22 ‘‘(8) Learning disability. 

23 ‘‘(9) Long-term health condition. 

24 ‘‘(10) Physical or mobility disability. 

25 ‘‘(11) Psychiatric disability. 

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1 ‘‘(12) Speech or language disability. 

2 ‘‘(13) Other disability. 

3 ‘‘(b) DATA TO BE SUBMITTED.—Each institution of 

4 higher education that receives funds under title IV shall 

5 collect and submit the following data to the National Data 

6 Center: 

7 ‘‘(1) The institution’s disability documentation 

8 requirements. 

9 ‘‘(2) The support services available at the insti10 tution. 

11 ‘‘(3) Links to information about institutional fi12 nancial aid. 

13 ‘‘(4) The institution’s accommodations policies. 

14 ‘‘(5) The institution’s accessible instructional 

15 materials. 

16 ‘‘(6) Individual-level, de-identified data describ17 ing services and accommodations provided to stu18 dents with disabilities, as well as the retention and 

19 graduation rates of students with disabilities who 

20 sought disability services and accommodations from 

21 the institution of higher education. 

22 ‘‘(7) The institution’s annual budget devoted to 

23 providing disability supports, services, and accom24 modations. 

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1 ‘‘(8) Other information relevant to students 

2 with disabilities, as required by the Secretary. 

3 ‘‘(c) DISAGGREGATION OF DATA.—Institutions of 

4 higher education submitting the data required under sub5 section (b) shall collect, organize, and submit such data 

6 in a way that supports disaggregation by the disability cat7 egories specified in subsection (a). 

8 ‘‘(d) PUBLIC AVAILABILITY OF DATA.—All data sub9 mitted to the National Data Center by institutions of 

10 higher education in accordance with subsection (b) shall 

11 be made available to the public not later than 1 year after 

12 that data is submitted to the National Data Center. 

13 ‘‘PART B—TRANSITION PROGRAMS FOR 

14 POSTSECONDARY STUDENTS WITH DISABILITIES 

15 ‘‘Subpart 1—Inclusive Higher Education for Students 

16 With Intellectual Disabilities 

17 ‘‘SEC. 911. PURPOSE; DEFINITIONS. 

18 ‘‘(a) PURPOSE.—It is the purpose of this subpart to 

19 promote the successful transition of students with intellec20 tual disabilities into higher education that leads to suc21 cessful employment outcomes in the integrated, competi22 tive workforce. 

23 ‘‘(b) DEFINITIONS.—In this subpart: 

24 ‘‘(1) INCLUSIVE HIGHER EDUCATION PROGRAM

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1 ITIES.—The term ‘inclusive higher education pro2 gram for students with intellectual disabilities’ 

3 means a degree, certificate, or non-degree program 

4 that— 

5 ‘‘(A) is offered by an institution of higher 

6 education; 

7 ‘‘(B) is designed to support students with 

8 intellectual disabilities who are seeking to con9 tinue academic, career and technical, or inde10 pendent living instruction at an institution of 

11 higher education in order to prepare for com12 petitive integrated employment; 

13 ‘‘(C) includes an advisement component 

14 and program of study; 

15 ‘‘(D) requires students with intellectual 

16 disabilities to participate in work-based training 

17 or internships with nondisabled individuals; and 

18 ‘‘(E) requires students with intellectual 

19 disabilities to participate, on not less than a 

20 half-time basis, each academic term (as deter21 mined by the institution), with such participa22 tion focusing on academic components and oc23 curring through one or more of the following 

24 activities: 

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1 ‘‘(i) Regular enrollment in credit-bear2 ing courses with nondisabled students of3 fered by the institution. 

4 ‘‘(ii) Auditing or participating in 

5 courses with nondisabled students offered 

6 by the institution for which the student 

7 does not receive regular academic credit. 

8 ‘‘(iii) Enrollment in noncredit-bearing, 

9 nondegree courses with nondisabled stu10 dents. 

11 ‘‘(2) STUDENT WITH AN INTELLECTUAL DIS12 ABILITY.—The term ‘student with an intellectual 

13 disability’ means a student— 

14 ‘‘(A) with a cognitive impairment, charac15 terized by significant limitations in— 

16 ‘‘(i) intellectual and cognitive func17 tioning; and 

18 ‘‘(ii) adaptive behavior as expressed in 

19 conceptual, social, and practical adaptive 

20 skills; and 

21 ‘‘(B) who is currently, or was formerly, eli22 gible for a free appropriate public education 

23 under the Individuals with Disabilities Edu24 cation Act. 

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1 ‘‘SEC. 912. INCLUSIVE HIGHER EDUCATION PROGRAM FOR 

2 STUDENTS WITH INTELLECTUAL DISABIL3 ITIES. 

4 ‘‘(a) GRANTS AUTHORIZED.— 

5 ‘‘(1) IN GENERAL.—From amounts appro6 priated to carry out this section, the Secretary shall 

7 annually award grants, on a competitive basis, to in8 stitutions of higher education (or consortia of insti9 tutions of higher education), to enable the institu10 tions or consortia to create or expand high quality, 

11 inclusive higher education programs for students 

12 with intellectual disabilities. The Secretary shall 

13 award grants under this section in a manner that 

14 ensures that new 5-year grants are awarded each 

15 fiscal year. 

16 ‘‘(2) ADMINISTRATION.—The program under 

17 this section shall be administered by the Office of 

18 Postsecondary Education, in collaboration with the 

19 Office of Special Education and Rehabilitative Serv20 ices. 

21 ‘‘(3) DURATION OF GRANTS.—A grant under 

22 this section shall be awarded for a period of 5 years. 

23 An institution of higher education (or a consortium) 

24 is only eligible for one 5-year grant under this sec25 tion. A recipient institution or consortium shall sus26 tain the program carried out under this section after 

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1 the expiration of the grant period using funding 

2 from another source. 

3 ‘‘(b) APPLICATION.—An institution of higher edu4 cation (or a consortium) desiring a grant under this sec5 tion shall submit an application to the Secretary at such 

6 time, in such manner, and containing such information as 

7 the Secretary may require. 

8 ‘‘(c) AWARD BASIS.—In awarding grants under this 

9 section, the Secretary shall— 

10 ‘‘(1) prohibit grantees from the 2010–2014 

11 grant cycle under this section from competing for 

12 the 2014–2018 grant cycle, in order to generate a 

13 larger number of self-sustaining inclusive higher 

14 education programs for students with intellectual 

15 disabilities across the United States; 

16 ‘‘(2) provide for an equitable geographic dis17 tribution of such grants; 

18 ‘‘(3) to the greatest extent possible, provide for 

19 an equitable distribution of such grants between 4- 

20 year institutions of higher education and 2-year in21 stitutions of higher education, including community 

22 colleges; 

23 ‘‘(4) provide grant funds for inclusive higher 

24 education programs for students with intellectual 

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1 disabilities that will serve areas that are underserved 

2 by programs of this type; and 

3 ‘‘(5) give preference to applicants that agree to 

4 incorporate into the inclusive higher education pro5 grams for students with intellectual disabilities car6 ried out under the grant, 1 or more of the following 

7 elements: 

8 ‘‘(A) The formation of a partnership with 

9 any relevant State or local agency serving stu10 dents with intellectual disabilities, such as a vo11 cational rehabilitation agency. 

12 ‘‘(B) In the case of an institution of higher 

13 education that provides institutionally owned or 

14 operated housing for students attending the in15 stitution, the integration of students with intel16 lectual disabilities into the housing offered to 

17 nondisabled students. 

18 ‘‘(C) The involvement of students attend19 ing the institution of higher education who are 

20 studying special education, general education, 

21 vocational rehabilitation, assistive technology, or 

22 related fields in the program. 

23 ‘‘(d) USE OF FUNDS.—An institution of higher edu24 cation (or a consortium) receiving a grant under this sec25 tion shall use the grant funds to establish an inclusive 

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1 higher education program for students with intellectual 

2 disabilities that— 

3 ‘‘(1) serves students with intellectual disabil4 ities; 

5 ‘‘(2) provides individual supports and services 

6 for the academic and social inclusion of students 

7 with intellectual disabilities in academic courses, ex8 tracurricular activities, and other aspects of the in9 stitution of higher education’s regular postsecondary 

10 program; 

11 ‘‘(3) with respect to the students with intellec12 tual disabilities participating in the program, pro13 vides a focus on— 

14 ‘‘(A) academic enrichment; 

15 ‘‘(B) integrated socialization with non16 disabled students; 

17 ‘‘(C) independent living skills, including 

18 self-advocacy skills; and 

19 ‘‘(D) integrated work experiences and ca20 reer skills that lead to competitive integrated 

21 employment; 

22 ‘‘(4) provides integrated person-centered plan23 ning in the development of the course of study for 

24 each student with an intellectual disability partici25 pating in the program; 

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1 ‘‘(5) participates with the inclusive higher edu2 cation programs for students with intellectual dis3 abilities coordinating center established under sec4 tion 913 (referred to in this part as the ‘coordi5 nating center’) in the evaluation of the program, in6 cluding by regularly submitting data on the experi7 ences and outcomes of individual students partici8 pating in the program; 

9 ‘‘(6) partners with 1 or more local educational 

10 agencies to support students with intellectual disabil11 ities participating in the program who are still eligi12 ble for special education and related services under 

13 the Individuals with Disabilities Education Act, in14 cluding the use of funds available under part B of 

15 such Act to support the participation of such stu16 dents in the program; 

17 ‘‘(7) plans for the sustainability of the program 

18 after the end of the grant period; 

19 ‘‘(8) offers an existing meaningful credential to 

20 students with intellectual disabilities upon comple21 tion of the inclusive program, or, if such credentials 

22 are not available, creates a meaningful credential 

23 that aligns with existing industry or discipline ap24 proved credentials to students with intellectual dis25 abilities upon completion of the program; and 

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1 ‘‘(9) provides for the collection and trans2 mission of data in accordance with subsection (e). 

3 ‘‘(e) DATA COLLECTION AND TRANSITION.— 

4 ‘‘(1) IN GENERAL.—An institution or consor5 tium receiving a grant under this section shall col6 lect, and transmit to the coordinating center on an 

7 annual basis and for each student who is enrolled in 

8 the program, student-level information related to the 

9 experiences and outcomes of students who partici10 pate in the inclusive higher education program for 

11 students with intellectual disabilities. 

12 ‘‘(2) LONGITUDINAL DATA.—Each grantee shall 

13 collect longitudinal outcome data from former stu14 dents who participated in the program and transmit 

15 such data to the coordinating center. Such longitu16 dinal data shall be collected for every student each 

17 year for 5 years after the student graduates from, 

18 or otherwise exits, the program. 

19 ‘‘(3) DATA TO BE COLLECTED.—The program20 level information and data and student-level infor21 mation and data to be collected under this sub22 section shall include— 

23 ‘‘(A) the number and type of postsec24 ondary education courses taken and completed 

25 by the student; 

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1 ‘‘(B) academic outcomes; 

2 ‘‘(C) competitive, integrated employment 

3 outcomes; 

4 ‘‘(D) independent living outcomes; and 

5 ‘‘(E) social outcomes. 

6 ‘‘(f) MATCHING REQUIREMENT.—An institution of 

7 higher education (or consortium) that receives a grant 

8 under this section shall provide matching funds toward the 

9 costs of the inclusive higher education program for stu10 dents with intellectual disabilities carried out under the 

11 grant. Such matching funds may be provided in cash or 

12 in-kind, and shall be in an amount of not less than 25 

13 percent of the amount of such costs. 

14 ‘‘(g) REPORT.—Not later than 5 years after the date 

15 of the first grant awarded under this section, the Sec16 retary shall prepare and disseminate a report to the au17 thorizing committees and to the public that— 

18 ‘‘(1) reviews the activities of the inclusive high19 er education programs for students with intellectual 

20 disabilities funded under this section; and 

21 ‘‘(2) provides guidance and recommendations 

22 on how effective programs can be replicated. 

23 ‘‘(h) RULE OF CONSTRUCTION.—Nothing in this sub24 part shall be construed to reduce or expand— 

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1 ‘‘(1) the obligation of a State or local edu2 cational agency to provide a free appropriate public 

3 education, as defined in section 602 of the Individ4 uals with Disabilities Education Act; or 

5 ‘‘(2) eligibility requirements under any Federal, 

6 State, or local disability law, including the Ameri7 cans with Disabilities Act of 1990 (42 U.S.C. 12101 

8 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. 

9 701 et seq.), or the Developmental Disabilities As10 sistance and Bill of Rights Act of 2000 (42 U.S.C. 

11 15001 et seq.). 

12 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS AND RES13 ERVATION.— 

14 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

15 There are authorized to be appropriated to carry out 

16 this subpart such sums as may be necessary for fis17 cal year 2015 and each of the 5 succeeding fiscal 

18 years. 

19 ‘‘(2) RESERVATION OF FUNDS.—For any fiscal 

20 year for which appropriations are made for this sub21 part, the Secretary shall reserve funds to enter into 

22 a cooperative agreement to establish the coordi23 nating center under section 913(b), in an amount 

24 that is not less than $1,000,000. Not less than 40 

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1 tion of continued collection of data from inclusive 

2 higher education programs for students with intellec3 tual disabilities grantees, and the dissemination ef4 forts of such grantees, from earlier grant cycles. 

5 ‘‘SEC. 913. COORDINATING CENTER FOR THE INCLUSIVE 

6 HIGHER EDUCATION PROGRAMS FOR STU7 DENTS WITH INTELLECTUAL DISABILITIES. 

8 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this 

9 subsection, the term ‘eligible entity’ means an entity, or 

10 a partnership of entities, that has demonstrated expertise 

11 in— 

12 ‘‘(1) higher education; 

13 ‘‘(2) the education of students with intellectual 

14 disabilities; 

15 ‘‘(3) the development of inclusive higher edu16 cation programs for students with intellectual dis17 abilities; and 

18 ‘‘(4) evaluation and technical assistance. 

19 ‘‘(b) IN GENERAL.—From amounts appropriated 

20 under section 912(i)(2), the Secretary shall enter into a 

21 cooperative agreement with an eligible entity (determined 

22 on a competitive basis) for the purpose of establishing a 

23 coordinating center for institutions of higher education 

24 that offer inclusive higher education programs for stu25 dents with intellectual disabilities (referred to in this secmstockstill on DSK4VPTVN1PROD with BILLS

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1 tion as ‘inclusive higher education programs’). The coordi2 nating center shall carry out the activities described in 

3 subsection (e) and shall provide— 

4 ‘‘(1) recommendations related to the develop5 ment of standards for inclusive higher education 

6 programs; 

7 ‘‘(2) technical assistance for such programs; 

8 and 

9 ‘‘(3) evaluations for such programs, including 

10 systematic collection of data on the experiences and 

11 outcomes of individuals with intellectual disabilities. 

12 ‘‘(c) ADMINISTRATION.—The program under this sec13 tion shall be administered by the Office of Postsecondary 

14 Education, in collaboration with the Office of Special Edu15 cation and Rehabilitative Services. 

16 ‘‘(d) DURATION.—The Secretary shall enter into a 

17 cooperative agreement, as described in subsection (b) for 

18 a period of 5 years. 

19 ‘‘(e) COORDINATING CENTER ACTIVITIES.—The co20 ordinating center established under subsection (b) shall 

21 carry out the following activities: 

22 ‘‘(1) Evaluating participant progress by cre23 ating and maintaining a database of student-level in24 formation and data related to the experiences and 

25 outcomes of youth who participate in each inclusive 

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1 higher education program that receives a grant 

2 under this subpart. The program and student-level 

3 information and data that the coordinating center 

4 will collect and maintain in the database shall in5 clude the information described in section 912(e)(3). 

6 ‘‘(2) Creating and maintaining a mechanism for 

7 continuing to collect outcome information from stu8 dents who participated in inclusive higher education 

9 programs that were developed in previous grant 

10 award cycles. 

11 ‘‘(3) Creating and maintaining a mechanism for 

12 collaborating with highly integrated, inclusive higher 

13 education programs from earlier grant cycles, with 

14 the purpose of disseminating and publicizing best 

15 practices for implementing such programs. 

16 ‘‘(4) Serving as the technical assistance entity 

17 for all inclusive higher education programs for stu18 dents with intellectual disabilities, including by pro19 viding technical assistance regarding the develop20 ment, evaluation, and continuous improvement of 

21 such programs. 

22 ‘‘(5) Developing an evaluation protocol for in23 clusive higher education programs that includes 

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1 uring student outcomes and program strengths in 

2 the areas of— 

3 ‘‘(A) inclusive academics; 

4 ‘‘(B) socialization; 

5 ‘‘(C) independent living; and 

6 ‘‘(D) the achievement of competitive, inte7 grated employment. 

8 ‘‘(6) Assisting recipients of a grant under this 

9 subpart in efforts to consider how to ensure their 

10 meaningful credentials align with existing approved 

11 credentials and to seek institution of higher edu12 cation approval for any newly developed credentials. 

13 ‘‘(7) Developing recommendations for the nec14 essary components of such programs, such as— 

15 ‘‘(A) the development of academic, voca16 tional, social, and independent living skills; 

17 ‘‘(B) program administration and evalua18 tion; 

19 ‘‘(C) student eligibility; and 

20 ‘‘(D) issues regarding the equivalency of a 

21 student’s participation in such programs to se22 mester, trimester, quarter, credit, or clock 

23 hours at an institution of higher education, as 

24 the case may be. 

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1 ‘‘(8) Analyzing possible funding streams for in2 clusive higher education programs and providing rec3 ommendations regarding those funding streams. 

4 ‘‘(9) Developing model memoranda of agree5 ment for use between or among institutions of high6 er education and State and local agencies providing 

7 funding for such programs. 

8 ‘‘(10) Developing mechanisms for regular com9 munication, outreach, and dissemination of informa10 tion about inclusive higher education programs re11 ceiving a grant under this subpart between or among 

12 such programs and to families and prospective stu13 dents who may wish to participate in such programs. 

14 ‘‘(11) Hosting a meeting of all grant recipients 

15 not less often than once each year. 

16 ‘‘(12) Convening a workgroup to— 

17 ‘‘(A) develop and recommend model cri18 teria, standards, and components of such pro19 grams, that are appropriate for the development 

20 of accreditation standards, that shall include— 

21 ‘‘(i) an expert in higher education; 

22 ‘‘(ii) an expert in special education; 

23 ‘‘(iii) a disability organization that 

24 represents students with intellectual dis25 abilities; 

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1 ‘‘(iv) a representative from the Na2 tional Advisory Committee on Institutional 

3 Quality and Integrity; and 

4 ‘‘(v) a representative of a regional or 

5 national accreditation agency or associa6 tion; and 

7 ‘‘(B) oversee the coordinating center staff 

8 in field testing such model criteria, standards, 

9 and components. 

10 ‘‘(f) REPORT.—Not later than 2 years after the date 

11 of enactment of the Higher Education Affordability Act, 

12 the coordinating center shall report to the Secretary, the 

13 authorizing committees, and the National Advisory Com14 mittee on Institutional Quality and Integrity on the rec15 ommendations of the workgroup described in subsection 

16 (e)(12). 

17 ‘‘Subpart 2—Transition Programs for Students Who 

18 Are Deaf-Blind 

19 ‘‘SEC. 921. PURPOSE; DEFINITIONS. 

20 ‘‘(a) PURPOSE.—It is the purpose of this subpart to 

21 support model demonstration programs that promote the 

22 successful transition of students who are deaf-blind into 

23 higher education and employment outcomes in integrated, 

24 competitive settings at the levels expected given their post25 secondary education. 

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1 ‘‘(b) DEFINITIONS.—In this subpart: 

2 ‘‘(1) COMPREHENSIVE TRANSITION AND POST3 SECONDARY PROGRAM FOR STUDENTS WHO ARE

4 DEAF-BLIND.—The term ‘comprehensive transition 

5 and postsecondary program for students who are 

6 deaf-blind’ means a degree, certificate, or nondegree 

7 program of postsecondary education that— 

8 ‘‘(A) is offered by an institution of higher 

9 education; 

10 ‘‘(B) is designed to support students who 

11 are deaf-blind and who are seeking to continue 

12 academic, career and technical, and inde13 pendent living instruction at an institution of 

14 higher education in order to prepare for com15 petitive integrated employment; 

16 ‘‘(C) includes an advising and curriculum 

17 structure; 

18 ‘‘(D) requires students who are deaf-blind 

19 to participate in internships or work-based 

20 training in competitive, integrated workplace 

21 settings with nondisabled individuals; and 

22 ‘‘(E) requires students who are deaf-blind 

23 to participate in the program on not less than 

24 a half-time basis, as determined by the institu25 tion, with such participation focusing on acamstockstill on DSK4VPTVN1PROD with BILLS

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1 demic components and occurring through 1 or 

2 more of the following activities: 

3 ‘‘(i) Regular enrollment in credit-bear4 ing courses with nondisabled students of5 fered by the institution. 

6 ‘‘(ii) Auditing or participating in 

7 courses with nondisabled students offered 

8 by the institution for which the student 

9 does not receive regular academic credit. 

10 ‘‘(iii) Enrollment in noncredit-bearing, 

11 nondegree courses with nondisabled stu12 dents. 

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

14 The term ‘institution of higher education’ has the 

15 meaning given the term in section 101(a). 

16 ‘‘(3) STUDENT WHO IS DEAF-BLIND.—The term 

17 ‘student who is deaf-blind’ means a student— 

18 ‘‘(A)(i) who has a central visual acuity of 

19 20/200 or less in the better eye with corrective 

20 lenses, or a field defect such that the peripheral 

21 diameter of visual field subtends an angular 

22 distance no greater than 20 degrees, or a pro23 gressive visual loss having a prognosis leading 

24 to one or both these conditions; 

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1 ‘‘(ii) who has a chronic hearing impair2 ment so severe that most speech cannot be un3 derstood with optimum amplification, or a pro4 gressive hearing loss having a prognosis leading 

5 to this condition; and 

6 ‘‘(iii) for whom the combination of impair7 ments described in clauses (i) and (ii) cause ex8 treme difficulty in attaining independence in 

9 daily life activities, achieving psychosocial ad10 justment, or obtaining a vocation; or 

11 ‘‘(B) who despite the inability to be meas12 ured accurately for hearing and vision loss due 

13 to cognitive or behavioral constraints, can be 

14 determined through functional and performance 

15 assessments to have severe hearing and visual 

16 disabilities that cause extreme difficulty in at17 taining independence in daily life activities, 

18 achieving psychosocial adjustment, or obtaining 

19 a vocation. 

20 ‘‘SEC. 922. MODEL COMPREHENSIVE TRANSITION AND 

21 POSTSECONDARY PROGRAMS FOR STUDENTS 

22 WHO ARE DEAF-BLIND. 

23 ‘‘(a) GRANTS AUTHORIZED.— 

24 ‘‘(1) IN GENERAL.—From amounts appro25 priated under section 951 and not reserved under 

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1 section 923(c), the Secretary shall annually award 

2 grants, on a competitive basis, to institutions of 

3 higher education, or consortia of institutions of high4 er education, to enable the institutions or consortia 

5 to create or expand high quality, inclusive model 

6 comprehensive transition and postsecondary pro7 grams for students who are deaf-blind. The Sec8 retary shall award grants under this section in a 

9 manner that ensures that new 5-year grants are 

10 awarded each fiscal year. 

11 ‘‘(2) ADMINISTRATION.—The program under 

12 this section shall be administered by the Office of 

13 Postsecondary Education, in collaboration with the 

14 Office of Special Education and Rehabilitative Serv15 ices. 

16 ‘‘(3) DURATION OF GRANTS.—A grant under 

17 this section shall be awarded for a period of 5 years. 

18 An institution of higher education (or a consortium 

19 of such institutions) is eligible for only one 5-year 

20 grant under this program. 

21 ‘‘(b) APPLICATION.—An institution of higher edu22 cation (or a consortium of such institutions) desiring a 

23 grant under this section shall submit an application to the 

24 Secretary at such time, in such manner, and containing 

25 such information as the Secretary may require. Such inmstockstill on DSK4VPTVN1PROD with BILLS

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1 formation shall include a demonstration of how the insti2 tution or consortium intends to sustain the program after 

3 the end of the grant period, including an identification of 

4 other sources of funds for the program. 

5 ‘‘(c) AWARD BASIS.—In awarding grants under this 

6 section, the Secretary shall— 

7 ‘‘(1) provide for an equitable geographic dis8 tribution of such grants; 

9 ‘‘(2) provide for an equitable distribution of 

10 such grants between 4-year degree-granting and 2- 

11 year degree-granting institutions of higher edu12 cation; 

13 ‘‘(3) provide grant funds for model comprehen14 sive transition and postsecondary programs for stu15 dents who are deaf-blind that will serve areas that 

16 are underserved by programs of this type; and 

17 ‘‘(4) give preference to applications that agree 

18 to incorporate, into the model comprehensive transi19 tion and postsecondary program for students who 

20 are deaf-blind carried out under the grant, 1 or 

21 more of the following elements: 

22 ‘‘(A) The formation of a partnership with 

23 any relevant agency serving students who are 

24 deaf-blind, such as a vocational rehabilitation 

25 agency. 

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1 ‘‘(B) In the case of an institution of higher 

2 education that provides institutionally owned or 

3 operated housing for students attending the in4 stitution, the integration of students who are 

5 deaf-blind into the housing offered to non6 disabled students. 

7 ‘‘(C) The involvement of students attend8 ing the institution of higher education who are 

9 studying special education, general education, 

10 vocational rehabilitation, assistive technology, or 

11 related fields in the model program. 

12 ‘‘(d) USE OF FUNDS.—An institution of higher edu13 cation (or consortium of such institutions) receiving a 

14 grant under this section shall use the grant funds to estab15 lish a model comprehensive transition and postsecondary 

16 program for students who are deaf-blind that— 

17 ‘‘(1) provides individual supports and services 

18 for the academic and social inclusion of students 

19 who are deaf-blind in academic courses, extra20 curricular activities, and other aspects of the institu21 tion of higher education’s regular postsecondary pro22 gram; 

23 ‘‘(2) with respect to the students who are deaf24 blind and who are participating in the model pro25 gram, provides a focus on— 

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1 ‘‘(A) academic enrichment; 

2 ‘‘(B) integrated socialization with non3 disabled students; 

4 ‘‘(C) independent living skills, including 

5 self-advocacy skills; and 

6 ‘‘(D) integrated work experiences and ca7 reer skills that lead to competitive integrated 

8 employment; 

9 ‘‘(3) provides integrated individual-centered 

10 planning in the development of the course of study 

11 for each student who is deaf-blind participating in 

12 the model program; 

13 ‘‘(4) participates with the coordinating center 

14 established under section 923 in the evaluation of 

15 the model program, including regular submission of 

16 data on the experiences and outcomes of individual 

17 students participating in the program; 

18 ‘‘(5) partners with 1 or more local educational 

19 agencies to support students who are deaf-blind par20 ticipating in the model program who are still eligible 

21 for special education and related services under the 

22 Individuals with Disabilities Education Act, includ23 ing the use of funds available under part B of such 

24 Act to support the participation of such students in 

25 the model program; 

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1 ‘‘(6) plans for the sustainability of the model 

2 program after the end of the grant period; 

3 ‘‘(7) creates and offers a meaningful credential 

4 for students who are deaf-blind upon the completion 

5 of the model program; and 

6 ‘‘(8) provides for the collection and trans7 mission of data in accordance with subsection (e). 

8 ‘‘(e) DATA COLLECTION.— 

9 ‘‘(1) IN GENERAL.—An institution of higher 

10 education (or consortium of such institutions) receiv11 ing a grant under this section shall collect and 

12 transmit to the coordinating center established 

13 under section 923, on an annual basis, student in14 formation related to the experiences and outcomes of 

15 each student who participates in the comprehensive 

16 transition and postsecondary program for students 

17 who are deaf-blind. 

18 ‘‘(2) LONGITUDINAL DATA.—In addition to the 

19 requirements of paragraph (1), each institution of 

20 higher education (or consortium of such institutions) 

21 shall implement a mechanism by which the institu22 tion or consortium will collect longitudinal outcomes 

23 data from former students who participate in the 

24 comprehensive transition and postsecondary program 

25 supported under this section, and transmit that data 

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1 to the coordinating center established under section 

2 923. Such longitudinal data shall be collected for 

3 every student for the 5 years after the student grad4 uates from, or otherwise exits, the program. 

5 ‘‘(3) DATA TO BE COLLECTED.—The student 

6 information to be collected and transmitted under 

7 this subsection shall include— 

8 ‘‘(A) the number and type of postsec9 ondary education courses taken and completed 

10 by the student; 

11 ‘‘(B) academic outcomes; 

12 ‘‘(C) competitive, integrated employment 

13 outcomes; 

14 ‘‘(D) independent living outcomes; and 

15 ‘‘(E) social outcomes. 

16 ‘‘(f) MATCHING REQUIREMENT.—An institution of 

17 higher education (or consortium of such institutions) that 

18 receives a grant under this section shall provide matching 

19 funds toward the cost of the model comprehensive transi20 tion and postsecondary program for students who are 

21 deaf-blind carried out under the grant. Such matching 

22 funds may be provided in cash or in-kind, and shall be 

23 in an amount of not less than 25 percent of the amount 

24 of such costs. 

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1 ‘‘(g) REPORT.—Not later than 5 years after the date 

2 of the first grant awarded under this section, the Sec3 retary shall prepare and disseminate a report to the au4 thorizing committees and to the public that— 

5 ‘‘(1) reviews the activities of the model com6 prehensive transition and postsecondary programs 

7 for students who are deaf-blind that receive funds 

8 under this section; and 

9 ‘‘(2) provides guidance and recommendations 

10 on how effective model programs can be replicated. 

11 ‘‘(h) RULE OF CONSTRUCTION.—Nothing in this sec12 tion shall be construed to reduce or expand— 

13 ‘‘(1) the obligation of a State or local edu14 cational agency to provide a free appropriate public 

15 education, as defined in section 602 of the Individ16 uals with Disabilities Education Act; or 

17 ‘‘(2) eligibility requirements under any Federal, 

18 State, or local disability law, including the Ameri19 cans with Disabilities Act of 1990 (42 U.S.C. 12101 

20 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. 

21 701 et seq.), or the Developmental Disabilities As22 sistance and Bill of Rights Act of 2000 (42 U.S.C. 

23 15001 et seq.). 

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1 ‘‘SEC. 923. COORDINATING CENTER FOR THE MODEL COM2 PREHENSIVE TRANSITION AND POSTSEC3 ONDARY PROGRAMS FOR STUDENTS WHO 

4 ARE DEAF-BLIND. 

5 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec6 tion, the term ‘eligible entity’ means an entity, or a part7 nership of entities, that has demonstrated expertise in— 

8 ‘‘(1) higher education; 

9 ‘‘(2) the education of students who are deaf10 blind; 

11 ‘‘(3) the development of comprehensive transi12 tion and postsecondary programs for students who 

13 are deaf-blind; and 

14 ‘‘(4) evaluation and technical assistance. 

15 ‘‘(b) IN GENERAL.—From amounts appropriated to 

16 carry out this section that are reserved under subsection 

17 (c), the Secretary shall enter into a cooperative agreement, 

18 on a competitive basis, with an eligible entity for the pur19 pose of establishing a coordinating center for institutions 

20 of higher education that offer inclusive comprehensive 

21 transition and postsecondary programs for students who 

22 are deaf-blind (referred to in this section as a ‘coordi23 nating center’). The coordinating center shall carry out 

24 the activities described in subsection (f) and shall pro25 vide— 

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1 ‘‘(1) recommendations related to the develop2 ment of standards for such programs; 

3 ‘‘(2) technical assistance for such programs; 

4 and 

5 ‘‘(3) evaluations for such programs, including 

6 systematic collection of data on the experiences and 

7 outcomes of individuals who are deaf-blind. 

8 ‘‘(c) RESERVATION OF FUNDS.—For any fiscal year 

9 for which appropriations are made for this subpart in an 

10 amount greater than $10,000,000, the Secretary shall re11 serve 4 percent of such funds to carry out this section. 

12 For any fiscal year for which appropriations are made for 

13 this subpart in an amount that is equal to or less than 

14 $10,000,000, the Secretary shall reserve not less than 

15 $400,000 to carry out this section. Not less than 40 per16 cent of the amount reserved under this subsection shall 

17 be used for the administration of continued collection of 

18 data and dissemination of best practices, as described in 

19 paragraphs (2) and (3) of subsection (f). 

20 ‘‘(d) ADMINISTRATION.—The program under this 

21 section shall be administered by the Office of Postsec22 ondary Education, in collaboration with the Office of Spe23 cial Education and Rehabilitative Services. 

24 ‘‘(e) DURATION.—A cooperative agreement under 

25 this subsection shall be for a period of 5 years. 

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1 ‘‘(f) REQUIREMENTS OF COOPERATIVE AGREE2 MENT.—The coordinating center established under sub3 section (b) shall carry out the following activities: 

4 ‘‘(1) Evaluating student progress by creating 

5 and maintaining a database of student-level informa6 tion related to the experiences and outcomes of 

7 youth students who participate in each comprehen8 sive transition and postsecondary program for stu9 dents who are deaf-blind. The student-level informa10 tion and data that the coordinating center will col11 lect and maintain in the database shall include the 

12 information described in section 922(e)(3). 

13 ‘‘(2) Creating and maintaining a mechanism for 

14 continuing to collect outcomes information from stu15 dents participating in comprehensive programs that 

16 were developed in previous cycles of the program. 

17 ‘‘(3) Creating and maintaining a mechanism for 

18 collaborating with highly integrated comprehensive 

19 programs with the purpose of disseminating and 

20 publicizing best practices for implementing com21 prehensive transition and postsecondary programs 

22 for students who are deaf-blind. 

23 ‘‘(4) Serving as the technical assistance entity 

24 for all comprehensive transition and postsecondary 

25 programs for students who are deaf-blind, including 

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1 by providing technical assistance regarding the de2 velopment, evaluation, and continuous improvement 

3 of such comprehensive programs. 

4 ‘‘(5) Developing an evaluation protocol for such 

5 programs that includes qualitative and quantitative 

6 methodologies for measuring student outcomes and 

7 program strengths in the areas of— 

8 ‘‘(A) academic enrichment; 

9 ‘‘(B) socialization; 

10 ‘‘(C) independent living, and 

11 ‘‘(D) the attainment of competitive or sup12 ported employment by students who participate 

13 in the program. 

14 ‘‘(6) Assisting recipients of grants under this 

15 subpart in efforts to award a meaningful credential 

16 to students who are deaf-blind upon the completion 

17 of a comprehensive program, which credential shall 

18 take into consideration unique State factors. 

19 ‘‘(7) Developing recommendations for the nec20 essary components of such programs, such as— 

21 ‘‘(A) development of academic, career and 

22 technical, social, and independent living skills; 

23 ‘‘(B) program administration and evalua24 tion; 

25 ‘‘(C) student eligibility; and 

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1 ‘‘(D) issues regarding the equivalency of a 

2 student’s participation in such programs to se3 mester, trimester, quarter, credit, or clock 

4 hours at an institution of higher education, as 

5 the case may be. 

6 ‘‘(8) Analyzing possible funding streams for 

7 such programs and providing recommendations re8 garding the funding streams. 

9 ‘‘(9) Developing model memoranda of agree10 ment for use between or among institutions of high11 er education and State and local agencies providing 

12 funding for such programs. 

13 ‘‘(10) Developing mechanisms for regular com14 munication, outreach, and dissemination of informa15 tion about comprehensive transition and postsec16 ondary programs for students who are deaf-blind 

17 that receive funds under section 922 between or 

18 among such programs and to families and prospec19 tive students. 

20 ‘‘(11) Hosting a meeting of all recipients of 

21 grants under section 922 not less often than once 

22 each year. 

23 ‘‘(12) Convening a workgroup to develop and 

24 recommend model criteria, standards, and compo25 nents of such programs that are appropriate for the 

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1 development of accreditation standards. The 

2 workgroup shall include— 

3 ‘‘(A) an expert in higher education; 

4 ‘‘(B) an expert in special education; 

5 ‘‘(C) a disability organization that rep6 resents students who are deaf-blind; 

7 ‘‘(D) a representative from the National 

8 Advisory Committee on Institutional Quality 

9 and Integrity; and 

10 ‘‘(E) a representative of a regional or na11 tional accreditation agency or association. 

12 ‘‘(g) REPORT.—Not later than 2 years after the date 

13 of enactment of the Higher Education Affordability Act, 

14 the coordinating center shall report to the Secretary, the 

15 authorizing committees, and the National Advisory Com16 mittee on Institutional Quality and Integrity on the rec17 ommendations of the workgroup described in subsection 

18 (f)(12). 

19 ‘‘PART C—PROVIDING ACCESSIBLE INSTRUC20 TIONAL MATERIALS TO STUDENTS WITH DIS21 ABILITIES ON COLLEGE CAMPUSES 

22 ‘‘SEC. 931. GUIDELINES FOR ACCESSIBLE INSTRUCTIONAL 

23 MATERIALS. 

24 ‘‘(a) PURPOSE.—The purpose of this section is to au25 thorize the Architectural and Transportation Barriers 

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1 Compliance Board (referred to in this section as the ‘Ac2 cess Board’) to establish guidelines for accessible instruc3 tional materials that will be used in postsecondary edu4 cation settings. 

5 ‘‘(b) IN GENERAL.—Not later than 18 months after 

6 the date of enactment of Higher Education Affordability 

7 Act, the Access Board (established pursuant to section 

8 502 of the Rehabilitation Act of 1973 (29 U.S.C. 792)) 

9 shall establish guidelines for the accessibility of all instruc10 tional materials for students who are attending institu11 tions of higher education that receive funds under title IV, 

12 including electronic instructional materials and related in13 formation technologies. Such guidelines shall— 

14 ‘‘(1) include performance criteria to ensure that 

15 such materials and technologies are accessible to 

16 students with disabilities, as defined in section 3 of 

17 the Americans with Disabilities Act of 1990 (42 

18 U.S.C. 12102); and 

19 ‘‘(2) if applicable, be consistent with the stand20 ards for technical and functional performance cri21 teria issued pursuant to section 508(a)(2)(A)(ii) of 

22 the Rehabilitation Act of 1973 (29 U.S.C. 

23 794d(a)(2)(A)(ii)). 

24 ‘‘(c) HARMONIZATION WITH NATIONAL AND INTER25 NATIONAL STANDARDS.—The Access Board shall, to the 

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1 extent practicable, ensure that the guidelines established 

2 under subsection (b) are consistent with national and 

3 international accessibility standards for electronic instruc4 tional materials and related information technologies. 

5 ‘‘(d) REVIEW AND AMENDMENT.—Not later than 3 

6 years after the effective date of the guidelines described 

7 in subsection (b), and every 3 years thereafter, the Access 

8 Board shall review and, as appropriate, amend such guide9 lines to reflect technological advances or changes in in10 structional materials and related information technologies. 

11 ‘‘(e) SAFE HARBOR PROTECTIONS.—An institution 

12 of higher education that uses instructional materials that 

13 comply with the accessibility guidelines described in sub14 section (b) shall be deemed to be in compliance with the 

15 non-discrimination provisions in section 504 of the Reha16 bilitation Act of 1973 (29 U.S.C. 794) and titles II and 

17 III of the Americans with Disabilities Act of 1990 (42 

18 U.S.C. 12131 et seq., 42 U.S.C. 12181 et seq.) with re19 spect to the use of such materials. 

20 ‘‘(f) NONCOMPLIANT INSTRUCTIONAL MATERIALS.— 

21 Nothing in this section shall be construed to require an 

22 institution of higher education to use instructional mate23 rials that conform to the accessibility guidelines described 

24 in subsection (b). If an institution of higher education 

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1 sibility guidelines described in subsection (b), such institu2 tion of higher education shall provide an assurance to the 

3 Secretary that the institution of higher education will pro4 vide instructional materials in a manner that is equally 

5 effective, integrated, and timely, and provides for a sub6 stantially equivalent ease of use, as compared to the man7 ner in which such materials or technologies are provided 

8 to non-disabled students. 

9 ‘‘SEC. 932. DEMONSTRATION PROGRAM FOR IMPROVED 

10 POSTSECONDARY INSTRUCTIONAL MATE11 RIALS IN SPECIALIZED FORMATS. 

12 ‘‘(a) PURPOSE.—It is the purpose of this section to 

13 support model demonstration programs for the purpose 

14 of— 

15 ‘‘(1) encouraging the development of systems to 

16 improve the quality of postsecondary instructional 

17 materials in specialized formats; 

18 ‘‘(2) encouraging the timely delivery of such 

19 materials to postsecondary students with print dis20 abilities; and 

21 ‘‘(3) improving efficiency and reducing duplica22 tive efforts across multiple institutions of higher 

23 education relating to the development and delivery of 

24 such materials. 

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1 ‘‘(b) DEFINITION OF ELIGIBLE PARTNERSHIP.—In 

2 this section, the term ‘eligible partnership’ means a part3 nership that— 

4 ‘‘(1) shall include— 

5 ‘‘(A) an institution of higher education 

6 with demonstrated expertise in meeting the 

7 needs of students with print disabilities, includ8 ing the retention of such students in, and such 

9 students’ completion of, postsecondary edu10 cation; and 

11 ‘‘(B) a public or private entity, other than 

12 an institution of higher education, with— 

13 ‘‘(i) demonstrated expertise in devel14 oping accessible instructional materials in 

15 specialized formats for postsecondary stu16 dents with print disabilities; and 

17 ‘‘(ii) the technical development exper18 tise necessary for the efficient dissemina19 tion of such materials, including proce20 dures to protect against copyright infringe21 ment with respect to the creation, use, and 

22 distribution of instructional materials in 

23 specialized formats; and 

24 ‘‘(2) may include representatives of the pub25 lishing industry. 

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1 ‘‘(c) PROGRAM AUTHORIZED.—From amounts appro2 priated to carry out this section, the Secretary shall award 

3 grants or contracts, on a competitive basis, to not less 

4 than 1 eligible partnership to enable the eligible partner5 ship to carry out the activities described in subsection (f) 

6 and, as applicable, subsection (g). 

7 ‘‘(d) APPLICATION.—An eligible partnership that de8 sires a grant or contract under this section shall submit 

9 an application at such time, in such manner, and in such 

10 format as the Secretary may prescribe. The application 

11 shall include information on how the eligible partnership 

12 will implement activities under subsection (f) and, as ap13 plicable, subsection (g). 

14 ‘‘(e) PRIORITY.—In awarding grants or contracts 

15 under this section, the Secretary shall give priority to any 

16 applications that include a plan for the development and 

17 implementation of the procedures and approaches de18 scribed in paragraphs (2) and (3) of subsection (g). 

19 ‘‘(f) REQUIRED ACTIVITIES.—An eligible partnership 

20 that receives a grant or contract under this section shall 

21 use the grant or contract funds to carry out the following: 

22 ‘‘(1) Supporting the development and imple23 mentation of the following: 

24 ‘‘(A) Processes and systems to help iden25 tify, and verify the eligibility of, postsecondary 

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1 students with print disabilities in need of in2 structional materials in specialized formats. 

3 ‘‘(B) Procedures and systems to facilitate 

4 and simplify the methods through which eligible 

5 students described in subparagraph (A) may re6 quest accessible instructional materials in spe7 cialized formats, which may include a single 

8 point-of-entry system. 

9 ‘‘(C) Procedures and systems to coordinate 

10 among institutions of higher education, pub11 lishers of instructional materials, and entities 

12 that produce materials in specialized formats, 

13 to efficiently facilitate— 

14 ‘‘(i) requests for such materials; 

15 ‘‘(ii) the responses to such requests; 

16 and 

17 ‘‘(iii) the delivery of such materials. 

18 ‘‘(D) Delivery systems that will ensure the 

19 timely provision of instructional materials in 

20 specialized formats to eligible students, which 

21 may include electronic file distribution. 

22 ‘‘(E) Systems to reduce duplicative conver23 sions and improve sharing of the same instruc24 tional materials in specialized formats for mulmstockstill on DSK4VPTVN1PROD with BILLS

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1 tiple eligible students at multiple institutions of 

2 higher education. 

3 ‘‘(F) Procedures to protect against copy4 right infringement with respect to the develop5 ment, use, and distribution of instructional ma6 terials in specialized formats while maintaining 

7 accessibility for eligible students, which may in8 clude digital technologies such as watermarking, 

9 fingerprinting, and other emerging approaches. 

10 ‘‘(G) Awareness, outreach, and training ac11 tivities for faculty, staff, and students related to 

12 the acquisition and dissemination of instruc13 tional materials in specialized formats and in14 structional materials utilizing universal design. 

15 ‘‘(2) Providing recommendations on how effec16 tive procedures and systems described in paragraph 

17 (1) may be disseminated and implemented on a na18 tional basis. 

19 ‘‘(g) AUTHORIZED APPROACHES.—An eligible part20 nership that receives a grant or contract under this section 

21 may use the grant or contract funds to support the devel22 opment and implementation of the following: 

23 ‘‘(1) Approaches for the provision of instruc24 tional materials in specialized formats limited to in25 structional materials used in smaller categories of 

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1 postsecondary courses, such as introductory, first2 year courses, and second-year courses. 

3 ‘‘(2) Approaches supporting a unified search for 

4 instructional materials in specialized formats across 

5 multiple databases or lists of available materials. 

6 ‘‘(3) Market-based approaches for making in7 structional materials in specialized formats directly 

8 available to eligible students at prices comparable to 

9 standard instructional materials. 

10 ‘‘(h) REPORT.—Not later than 3 years after the date 

11 that the first grant or contract is awarded under this sec12 tion, the Secretary shall submit to the authorizing commit13 tees a report that includes— 

14 ‘‘(1) the number of grants and contracts and 

15 the amount of funds distributed under this section; 

16 ‘‘(2) a summary of the purposes for which the 

17 grants and contracts were provided and an evalua18 tion of the progress made under such grants and 

19 contracts; 

20 ‘‘(3) a summary of the activities implemented 

21 under subsection (f) and, as applicable, subsection 

22 (g), including data on the number of postsecondary 

23 students with print disabilities served and the num24 ber of instructional material requests executed and 

25 delivered in specialized formats; and 

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1 ‘‘(4) an evaluation of the effectiveness of pro2 grams funded under this section. 

3 ‘‘(i) REQUIREMENT FOR PRODUCERS OF INSTRUC4 TIONAL MATERIALS.—Producers of instructional mate5 rials for the postsecondary education market that are in6 volved in or affecting interstate commerce, produce such 

7 materials for institutions of higher education that receive 

8 Federal funds, and incorporate synchronized audio and 

9 visual formats (including DVDs, CDs, video, web video, 

10 and similar formats) shall provide closed captions or sub11 titles. 

12 ‘‘PART D—COMMISSION ON SERVING AND SUP13 PORTING STUDENTS WITH PSYCHIATRIC DIS14 ABILITIES IN INSTITUTIONS OF HIGHER 

15 EDUCATION 

16 ‘‘SEC. 941. COMMISSION ON SERVING AND SUPPORTING 

17 STUDENTS WITH PSYCHIATRIC DISABILITIES 

18 IN INSTITUTIONS OF HIGHER EDUCATION. 

19 ‘‘(a) ESTABLISHMENT OF ADVISORY COMMISSION ON

20 SERVING AND SUPPORTING STUDENTS WITH PSY21 CHIATRIC DISABILITIES ON COLLEGE CAMPUSES.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall estab23 lish a commission to be known as the Advisory Com24 mission on Serving and Supporting Students with 

25 Psychiatric Disabilities in Institutions of Higher 

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1 Education (referred to in this section as the ‘Com2 mission’). 

3 ‘‘(2) MEMBERSHIP.— 

4 ‘‘(A) TOTAL NUMBER OF MEMBERS.—The 

5 Commission shall include not more than 15 

6 members, who shall be appointed by the Sec7 retary in accordance with subparagraphs (B) 

8 and (C). 

9 ‘‘(B) MEMBERS OF THE COMMISSION.— 

10 The Commission members shall include 1 rep11 resentative from each of the following cat12 egories: 

13 ‘‘(i) The Office of Postsecondary Edu14 cation of the Department. 

15 ‘‘(ii) The Office of Special Education 

16 and Rehabilitative Services of the Depart17 ment. 

18 ‘‘(iii) The Office for Civil Rights of 

19 the Department. 

20 ‘‘(iv) The National Council on Dis21 ability. 

22 ‘‘(v) The Association on Higher Edu23 cation and Disability, or a similar organi24 zation, as determined by the Secretary. 

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1 ‘‘(vi) The Protection and Advocacy for 

2 Individuals with Mental Illness program of 

3 the National Disability Rights Network, or 

4 a similar program, as determined by the 

5 Secretary. 

6 ‘‘(vii) A national organization rep7 resenting postsecondary education students 

8 with psychiatric disabilities. 

9 ‘‘(C) ADDITIONAL MEMBERS OF THE COM10 MISSION.—The Commission members shall in11 clude 4 representatives from each of the fol12 lowing categories: 

13 ‘‘(i) Staff from institutions of higher 

14 education with demonstrated experience in 

15 successfully supporting the retention and 

16 graduation of students with psychiatric 

17 disabilities. With respect to the 4 members 

18 appointed under this clause— 

19 ‘‘(I) 1 member shall be a staff 

20 member of a 2-year degree-granting 

21 institution and 1 member shall be a 

22 staff member from a 4-year degree23 granting institution; and 

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1 ‘‘(II) the 4 members selected 

2 shall represent institutions of differing 

3 sizes. 

4 ‘‘(ii) Individuals with psychiatric dis5 abilities, including not less than 2 cur6 rently enrolled postsecondary education 

7 students. 

8 ‘‘(D) TIMING.—The Secretary shall estab9 lish the Commission and appoint the members 

10 of the Commission not later than 120 days 

11 after the date of enactment of the Higher Edu12 cation Affordability Act. 

13 ‘‘(3) CHAIRPERSON AND VICE CHAIRPERSON.— 

14 The Commission shall select a chairperson and vice 

15 chairperson from among the members of the Com16 mission. 

17 ‘‘(4) MEETINGS.— 

18 ‘‘(A) IN GENERAL.—The Commission shall 

19 meet at the call of the Chairperson. 

20 ‘‘(B) FIRST MEETING.—Not later than 60 

21 days after the appointment of the members of 

22 the Commission under paragraph (2), the Com23 mission shall hold the Commission’s first meet24 ing. 

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1 ‘‘(5) QUORUM.—A majority of the members of 

2 the Commission shall constitute a quorum, but a 

3 lesser number of members may hold hearings. 

4 ‘‘(b) DUTIES OF THE COMMISSION.— 

5 ‘‘(1) STUDY.— 

6 ‘‘(A) IN GENERAL.—The Commission shall 

7 conduct a comprehensive study to— 

8 ‘‘(i) assess the barriers and systemic 

9 issues that may affect, and support- and 

10 service-delivery solutions that may im11 prove, the rates of retention and gradua12 tion for postsecondary students with psy13 chiatric disabilities; and 

14 ‘‘(ii) make recommendations related 

15 to the development of a comprehensive ap16 proach to improve the opportunities for 

17 postsecondary students with psychiatric 

18 disabilities to receive services and supports 

19 that optimize their rates of retention and 

20 graduation. 

21 ‘‘(B) EXISTING INFORMATION.—To the ex22 tent practicable, in carrying out the study 

23 under this paragraph, the Commission shall 

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1 tions, and information, as of the time of the 

2 study. 

3 ‘‘(C) RECOMMENDATIONS.—Based on the 

4 findings of the study under subparagraph (A), 

5 the Commission shall develop recommenda6 tions— 

7 ‘‘(i) to inform Federal regulations and 

8 legislation regarding the recruitment, re9 tention, and support of students with psy10 chiatric disabilities at institutions of higher 

11 education; and 

12 ‘‘(ii) to identify best practices for 

13 serving and supporting students with psy14 chiatric disabilities in postsecondary set15 tings, and maintaining the privacy protec16 tions provided under the regulations pro17 mulgated under section 264(c) of the 

18 Health Insurance Portability and Account19 ability Act of 1996 (Public Law 104–191; 

20 110 Stat. 2033) and section 444 of the 

21 General Education Provisions Act (com22 monly referred to as the ‘Family Edu23 cational Rights and Privacy Act of 1974’). 

24 ‘‘(2) REPORT.—Not later than 1 year after the 

25 first meeting of the Commission, the Commission 

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1 shall submit a report to the Secretary and the au2 thorizing committees describing the findings and 

3 recommendations of the study conducted under 

4 paragraph (1). 

5 ‘‘(3) DISSEMINATION OF INFORMATION.—In 

6 carrying out the study under paragraph (1), the 

7 Commission shall disseminate a final report 

8 through— 

9 ‘‘(A) the National Technical Assistance 

10 Centers established under sections 901 and 

11 902; and 

12 ‘‘(B) other means, as determined by the 

13 Commission. 

14 ‘‘(c) TERMINATION OF THE COMMISSION.—The Com15 mission shall terminate on the date that is 90 days after 

16 the date on which the Commission submits the report 

17 under subsection (b)(2) to the Secretary and the author18 izing committees. 

19 ‘‘PART E—AUTHORIZATION OF APPROPRIATIONS 

20 ‘‘SEC. 951. AUTHORIZATION OF APPROPRIATIONS. 

21 ‘‘There are authorized to carry out this title such 

22 sums as may be necessary for fiscal year 2015 and each 

23 of the 5 succeeding fiscal years.’’. 

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1 TITLE X—AMENDMENTS TO 

2 OTHER LAWS 

3 PART A—TRUTH IN LENDING ACT 

4 Subpart 1—Definitions 

5 SEC. 1010. DEFINITIONS. 

6 In this part— 

7 (1) the terms ‘‘alternative repayment arrange8 ment’’, ‘‘billing group’’, ‘‘postsecondary education 

9 loan’’, and ‘‘student loan servicer’’ have the mean10 ings given those terms in section 188 of the Truth 

11 in Lending Act, as added by section 1016; 

12 (2) the term ‘‘appropriate committees of Con13 gress’’ means— 

14 (A) the Committee on Banking, Housing, 

15 and Urban Affairs of the Senate; 

16 (B) the Committee on Health, Education, 

17 Labor, and Pensions of the Senate; 

18 (C) the Committee on Financial Services of 

19 the House of Representatives; and 

20 (D) the Committee on Education and the 

21 Workforce of the House of Representatives; 

22 (3) the term ‘‘Bureau’’ means the Bureau of 

23 Consumer Financial Protection; and 

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1 (4) the term ‘‘private education loan’’ has the 

2 meaning given that term in section 140(a) of the 

3 Truth in Lending Act (15 U.S.C. 1650(a)). 

4 Subpart 2—Amendments to Truth in Lending Act 

5 SEC. 1011. EXEMPTED TRANSACTIONS. 

6 Section 104 of the Truth in Lending Act (15 U.S.C. 

7 1603) is amended— 

8 (1) in the matter preceding paragraph (1), by 

9 striking ‘‘This title’’ and inserting ‘‘(a) IN GEN10 ERAL.—This title’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in sub13 section (a) shall prevent or be construed to prevent the 

14 provisions of chapter 6 from applying to any postsec15 ondary education lender, loan holder, or student loan 

16 servicer (as those terms are defined in section 188).’’. 

17 SEC. 1012. MANDATORY CERTIFICATION. 

18 (a) AMENDMENTS.—Section 128(e) of the Truth in 

19 Lending Act (15 U.S.C. 1638(e)) is amended— 

20 (1) by striking paragraph (3) and inserting the 

21 following: 

22 ‘‘(3) INSTITUTIONAL CERTIFICATION RE23 QUIRED.— 

24 ‘‘(A) IN GENERAL.—Except as provided in 

25 subparagraph (B), before a creditor may issue 

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1 any funds with respect to an extension of credit 

2 described in this subsection, the creditor shall 

3 obtain from the relevant institution of higher 

4 education at which such loan is to be used for 

5 a student, such institution’s certification of— 

6 ‘‘(i) the enrollment status of the stu7 dent; 

8 ‘‘(ii) the student’s cost of attendance 

9 at the institution as determined by the in10 stitution under part F of title IV of the 

11 Higher Education Act of 1965 (20 U.S.C. 

12 1087kk et seq.); and 

13 ‘‘(iii) the difference between— 

14 ‘‘(I) such cost of attendance; and 

15 ‘‘(II) the student’s estimated fi16 nancial assistance, including financial 

17 assistance received under title IV of 

18 the Higher Education Act of 1965 (20 

19 U.S.C. 1070 et seq.) if the student 

20 pursued such assistance, and other fi21 nancial assistance known to the insti22 tution, as applicable. 

23 ‘‘(B) LIMITATION ON EXTENSION OF

24 CREDIT.—A creditor shall not issue funds with 

25 respect to an extension of credit described in 

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1 this subsection in an amount that is greater 

2 than the amount described in subparagraph 

3 (A)(iii). 

4 ‘‘(C) EXCEPTION.—Notwithstanding sub5 paragraph (A), a creditor may issue funds with 

6 respect to an extension of credit described in 

7 this subsection without obtaining from the rel8 evant institution of higher education such insti9 tution’s certification if such institution fails to 

10 provide within 15 business days of the credi11 tor’s request for such certification— 

12 ‘‘(i) the requested certification; 

13 ‘‘(ii) a notification of a refusal to cer14 tify pursuant to section 

15 487(a)(28)(A)(i)(II) of the Higher Edu16 cation Act of 1965 (20 U.S.C. 

17 1094(a)(28)(A)(i)(II)); or 

18 ‘‘(iii) notification that the institution 

19 has received the request for certification 

20 and will need additional time to comply 

21 with the certification request. 

22 ‘‘(D) LOANS DISBURSED WITHOUT CER23 TIFICATION.—If a creditor issues funds without 

24 obtaining a certification, as described in sub25 paragraph (C), such creditor shall report the 

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1 issuance of such funds in a manner determined 

2 by the Director of the Bureau.’’; 

3 (2) by redesignating paragraphs (9), (10), and 

4 (11) as paragraphs (10), (11), and (12), respec5 tively; 

6 (3) by inserting after paragraph (8) the fol7 lowing: 

8 ‘‘(9) PROVISION OF INFORMATION.— 

9 ‘‘(A) PROVISION OF INFORMATION TO STU10 DENTS.— 

11 ‘‘(i) LOAN STATEMENT.—A creditor 

12 that issues any funds with respect to an 

13 extension of credit described in this sub14 section shall send loan statements, where 

15 such loan is to be used for a student, to 

16 borrowers of such funds not less than once 

17 every 3 months during the time that such 

18 student is enrolled at an institution of 

19 higher education. 

20 ‘‘(ii) CONTENTS OF LOAN STATE21 MENT.—Each statement described in 

22 clause (i) shall— 

23 ‘‘(I) report the borrower’s total 

24 remaining principal balance, including 

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1 accrued but unpaid interest and cap2 italized interest; 

3 ‘‘(II) report any increases in the 

4 principal balance since the last state5 ment; and 

6 ‘‘(III) list the current interest 

7 rate for each loan. 

8 ‘‘(B) NOTIFICATION OF LOANS DISBURSED

9 WITHOUT CERTIFICATION.—On or before the 

10 date a creditor issues any funds with respect to 

11 an extension of credit described in this sub12 section, the creditor shall notify the relevant in13 stitution of higher education, in writing, of the 

14 amount of the extension of credit and the stu15 dent on whose behalf credit is extended. The 

16 form of such written notification shall be sub17 ject to the regulations of the Bureau of Con18 sumer Financial Protection. 

19 ‘‘(C) ANNUAL REPORT.— 

20 ‘‘(i) IN GENERAL.—A creditor that of21 fers to issue funds with respect to an ex22 tension of credit described in this sub23 section shall prepare and submit an annual 

24 report to the Bureau of Consumer Finan25 cial Protection containing the required inmstockstill on DSK4VPTVN1PROD with BILLS

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1 formation about private education loans 

2 described in clause (ii). 

3 ‘‘(ii) INFORMATION TO BE IN4 CLUDED.—Each annual report required 

5 under clause (i) shall include the following 

6 information: 

7 ‘‘(I) The number of borrowers 

8 who request a private education loan 

9 who have not exhausted the financial 

10 assistance available under title IV of 

11 the Higher Education Act of 1965 (20 

12 U.S.C. 1070 et seq.). 

13 ‘‘(II) The number of borrowers 

14 who request a private education loan 

15 above the cost of attendance. 

16 ‘‘(III) The number of borrowers 

17 who request a private education loan 

18 who have not exhausted their financial 

19 assistance available under title IV of 

20 the Higher Education Act of 1965 (20 

21 U.S.C. 1070 et seq.) who then after 

22 the institutional certification process 

23 under section 487(a)(28)(A) of the 

24 Higher Education Act of 1965 (20 

25 U.S.C. 1094(a)(28)(A)) is complete, 

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1 reduce the amount of their private 

2 education loan. 

3 ‘‘(IV) The number of borrowers 

4 who request a private education loan 

5 who have not exhausted their financial 

6 assistance available under title IV of 

7 the Higher Education Act of 1965 (20 

8 U.S.C. 1070 et seq.) who then after 

9 the institutional certification process 

10 under section 487(a)(28)(A) of the 

11 Higher Education Act of 1965 (20 

12 U.S.C. 1094(a)(28)(A)) is complete, 

13 do not take out a private education 

14 loan. 

15 ‘‘(V) Any other information the 

16 Bureau of Consumer Financial Pro17 tection, in consultation with the Sec18 retary of Education, requires.’’; and 

19 (4) by adding at the end the following: 

20 ‘‘(13) PRIVATE EDUCATION LOAN INFORMATION

21 IN THE NATIONAL STUDENT LOAN DATA SYSTEM.— 

22 ‘‘(A) INFORMATION FROM LENDER.—Each 

23 private educational lender shall submit to the 

24 Director of the Bureau and the Secretary of 

25 Education for inclusion in the National Student 

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1 Loan Data System established under section 

2 485B of the Higher Education Act of 1965 (20 

3 U.S.C. 1092b) such information as may be de4 termined necessary by the Director and the 

5 Secretary under subparagraph (B). 

6 ‘‘(B) PROMULGATION OF REGULATION.— 

7 Not later than 1 year after the date of enact8 ment of the Higher Education Affordability 

9 Act, the Director, in coordination with the Sec10 retary of Education, shall promulgate a regula11 tion regarding the private education loan infor12 mation required to be submitted under subpara13 graph (A), including what private education 

14 loan information shall be required to be sub15 mitted and the method and format for submis16 sion. 

17 ‘‘(14) ADDITIONAL ELECTRONIC DISCLO18 SURES.— 

19 ‘‘(A) AVAILABILITY OF AGREEMENTS.— 

20 ‘‘(i) IN GENERAL.—Each private edu21 cational lender shall establish and maintain 

22 an Internet site on which the private edu23 cational lender shall post the written 

24 agreement between the private educational 

25 lender and the borrower for each private 

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1 education loan account. Each private edu2 cational lender shall also describe the num3 ber of private education loans, along with 

4 the average loan amount at the time of 

5 disbursement, associated with each private 

6 education loan of the borrower. 

7 ‘‘(ii) PROTECTION OF INDIVIDUAL

8 BORROWER INFORMATION.—A private edu9 cational lender may not post individual 

10 borrower information on the Internet site 

11 established and maintained under clause 

12 (i). 

13 ‘‘(B) PROVISION OF AGREEMENTS TO BU14 REAU.— 

15 ‘‘(i) IN GENERAL.—Each private edu16 cational lender shall provide to the Bureau, 

17 in electronic format, the private education 

18 loan agreements that it publishes on the 

19 Internet site of the private educational 

20 lender pursuant to subparagraph (A). 

21 ‘‘(ii) RECORD REPOSITORY.—The Bu22 reau shall establish and maintain on the 

23 publicly available Internet site of the Bu24 reau a central repository of the private 

25 education loan agreements received by the 

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1 Bureau pursuant to clause (i), which shall 

2 be easily accessible and retrievable by the 

3 public. 

4 ‘‘(iii) PROTECTION OF INDIVIDUAL

5 BORROWER INFORMATION.—The Bureau 

6 may not post individual borrower informa7 tion on the Internet site described in 

8 clause (ii). 

9 ‘‘(C) EXCEPTION.—This paragraph does 

10 not apply to individually negotiated changes to 

11 contractual terms, including individually modi12 fied workouts or renegotiations of amounts 

13 owed by a borrower under a private educational 

14 loan. 

15 ‘‘(D) REGULATIONS.—The Bureau may, in 

16 consultation with the other Federal banking 

17 agencies (as that term is defined in section 603 

18 of the Truth in Lending Act (15 U.S.C. 

19 1681a)), issue regulations to implement this 

20 paragraph, including regulations— 

21 ‘‘(i) specifying the format in which a 

22 private educational lender shall publish pri23 vate education loan agreements on the 

24 Internet site of the private educational 

25 lender; and 

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1 ‘‘(ii) establishing exceptions to sub2 paragraphs (A) and (B)(i) in any case in 

3 which the administrative burden outweighs 

4 the benefit of increased transparency, in5 cluding when a postsecondary education 

6 loan product has a de minimis number of 

7 consumer account holders. 

8 ‘‘(15) PREDISPUTE AGREEMENTS AND WAIV9 ERS.— 

10 ‘‘(A) IN GENERAL.—A borrower may not 

11 waive any right or remedy relating to a private 

12 education loan that is available to the borrower 

13 against a private educational lender, postsec14 ondary education lender, loan holder, or student 

15 loan servicer (as such terms are defined in sec16 tion 188) before the dispute as to which the 

17 right or remedy relates arises. Any such waiver 

18 agreed to before, on, or after the date of enact19 ment of the Higher Education Affordability Act 

20 shall not be enforceable and shall have no force 

21 or effect. 

22 ‘‘(B) PREDISPUTE ARBITRATION AGREE23 MENTS.—An agreement entered before, on, or 

24 after the date of enactment of the Higher Edu25 cation Affordability Act to arbitrate a dispute 

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1 relating to a private education loan that had 

2 not arisen at the time the agreement was en3 tered shall not be enforceable and shall have no 

4 force or effect. 

5 ‘‘(16) DISCHARGE OF PRIVATE EDUCATION

6 LOANS IN THE EVENT OF DEATH OR DISABILITY OF

7 THE BORROWER.—Each private education loan shall 

8 include terms that provide that the liability to repay 

9 the loan shall be cancelled— 

10 ‘‘(A) upon the death of the borrower; 

11 ‘‘(B) if the borrower becomes permanently 

12 and totally disabled, as determined under para13 graph (1) or (3) of section 437(a) of the Higher 

14 Education Act of 1965 (20 U.S.C. 1087(a)) 

15 and the regulations promulgated by the Sec16 retary of Education under that section; and 

17 ‘‘(C) if the Secretary of Veterans Affairs 

18 or the Secretary of Defense determines that the 

19 borrower is unemployable due to a service-con20 nected condition or disability, in accordance 

21 with the requirements of section 437(a)(2) of 

22 that Act and the regulations promulgated by 

23 the Secretary of Education under that sec24 tion.’’. 

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1 (b) REGULATIONS.—Not later than 1 year after the 

2 date of enactment of this Act, the Director of the Bureau 

3 of Consumer Financial Protection shall issue final regula4 tions implementing paragraphs (3) and (9) of section 

5 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)), 

6 as amended by subsection (a). Such regulations shall be7 come effective not later than 6 months after their date 

8 of issuance. 

9 (c) REPORT ON MANDATORY CERTIFICATION.—Not 

10 later than 2 years after the issuance of the regulations 

11 required under subsection (b), and at any other time de12 termined appropriate by the Director of the Bureau of 

13 Consumer Financial Protection and the Secretary of Edu14 cation jointly, the Director and the Secretary shall jointly 

15 submit to Congress a report on the compliance of institu16 tions of higher education and private educational lenders 

17 with section 128(e)(3) of the Truth in Lending Act (15 

18 U.S.C. 1638(e)), as amended by subsection (a), and sec19 tion 487(a)(28) of the Higher Education Act of 1965 (20 

20 U.S.C. 1094(a)(28)), as amended by section 491(b). Such 

21 report shall be based on the annual reports submitted 

22 under section 128(e)(9) of the Truth in Lending Act, as 

23 amended by subsection (a), and shall include information 

24 about the degree to which specific institutions utilize cer25 tifications in effectively encouraging the exhaustion of 

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1 Federal student loan eligibility and lowering student pri2 vate education loan debt. 

3 SEC. 1013. CIVIL LIABILITY. 

4 Section 130 of the Truth in Lending Act (15 U.S.C. 

5 1640) is amended— 

6 (1) in subsection (a)— 

7 (A) in the matter preceding paragraph (1), 

8 by inserting ‘‘and any postsecondary education 

9 lender, loan holder, or student loan servicer (as 

10 such terms are defined in section 188) who fails 

11 to comply with any requirement imposed under 

12 chapter 6 with respect to any person’’ before 

13 ‘‘is liable to such person’’; 

14 (B) in paragraph (2)— 

15 (i) in subparagraph (A)— 

16 (I) by striking ‘‘; or (iv)’’ and in17 serting ‘‘, or (iv)’’; and 

18 (II) by inserting ‘‘, or (v) in the 

19 case of a postsecondary education 

20 lender, loan holder, or student loan 

21 servicer (as such terms are defined in 

22 section 188) who fails to comply with 

23 any requirement imposed under chap24 ter 6, not less than $400 or greater 

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1 than $4,000’’ before the semicolon; 

2 and 

3 (ii) in subparagraph (B), by inserting 

4 ‘‘, postsecondary education lender, loan 

5 holder, or student loan servicer’’ after 

6 ‘‘creditor’’ each place it appears; and 

7 (C) in the matter following paragraph 

8 (4)— 

9 (i) in the first sentence— 

10 (I) by inserting ‘‘, postsecondary 

11 education lender, loan holder, or stu12 dent loan servicer’’ after ‘‘creditor’’ 

13 each place it appears; and 

14 (II) by striking ‘‘creditor’s fail15 ure’’ and inserting ‘‘failure by the 

16 creditor, postsecondary education 

17 lender, loan holder, or student loan 

18 servicer’’; 

19 (ii) in the fourth sentence, by insert20 ing ‘‘other than the disclosures required 

21 under section 128(e)(12),’’ after ‘‘referred 

22 to in section 128,’’; and 

23 (iii) in the fifth sentence, by inserting 

24 ‘‘, postsecondary education lender, loan 

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1 holder, or student loan servicer’’ after 

2 ‘‘creditor’’; 

3 (2) in subsection (c), by striking ‘‘creditor or 

4 assignee’’ each place it appears and inserting ‘‘cred5 itor, assignee, postsecondary education lender, loan 

6 holder, or student loan servicer’’; 

7 (3) in subsection (e), as amended by sections 

8 1416(b) and 1422 of the Dodd-Frank Wall Street 

9 Reform and Consumer Protection Act (Public Law 

10 111–203)— 

11 (A) in the second sentence, by inserting 

12 ‘‘or chapter 6’’ after ‘‘section 129, 129B, or 

13 129C’’; and 

14 (B) in the fourth sentence, by inserting 

15 ‘‘or chapter 6’’ after ‘‘or 129H’’; and 

16 (4) in subsection (h)— 

17 (A) by striking ‘‘creditor or assignee’’ and 

18 inserting ‘‘creditor, assignee, postsecondary 

19 education lender, loan holder, or student loan 

20 servicer’’; and 

21 (B) by striking ‘‘creditor’s or assignee’s li22 ability’’ and inserting ‘‘liability of the creditor, 

23 assignee, postsecondary education lender, loan 

24 holder, or student loan servicer’’. 

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1 SEC. 1014. DEFINITION OF PRIVATE EDUCATION LOAN. 

2 Section 140(a)(7)(A) of the Truth in Lending Act 

3 (15 U.S.C. 1650(a)(7)(A)) is amended— 

4 (1) in clause (i), by striking ‘‘and’’ after the 

5 semicolon; 

6 (2) by redesignating clause (ii) as clause (iii); 

7 and 

8 (3) by adding after clause (i) the following: 

9 ‘‘(ii) is not made, insured, or guaran10 teed under title VII or title VIII of the 

11 Public Health Service Act (42 U.S.C. 292 

12 et seq. and 296 et seq.); and’’. 

13 SEC. 1015. REVENUE SHARING AND DISCLOSURE OF AFFILI14 ATION. 

15 Chapter 2 of title I of the Truth in Lending Act (15 

16 U.S.C. 1631 et seq.) is amended by adding at the end 

17 the following: 

18 ‘‘SEC. 140B. PREVENTING UNFAIR AND DECEPTIVE MAR19 KETING OF CONSUMER FINANCIAL PROD20 UCTS AND SERVICES TO STUDENTS OF INSTI21 TUTIONS OF HIGHER EDUCATION. 

22 ‘‘(a) DEFINITIONS.—In this section: 

23 ‘‘(1) AFFILIATE.—The term ‘affiliate’ means 

24 any person that controls, is controlled by, or is 

25 under common control with another person. 

26 ‘‘(2) AFFILIATED.— 

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1 ‘‘(A) IN GENERAL.—The term ‘affiliated’, 

2 when used with respect to a consumer financial 

3 product or service and an institution of higher 

4 education, means an association between such 

5 institution and product or service resulting 

6 from— 

7 ‘‘(i) the name, emblem, mascot, or 

8 logo of the institution being used with re9 spect to such product or service; or 

10 ‘‘(ii) some other word, picture, or 

11 symbol readily identified with the institu12 tion in the marketing of the consumer fi13 nancial product or service in any way that 

14 implies that the institution endorses the 

15 consumer financial product or service. 

16 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

17 in subparagraph (A) shall be construed to deem 

18 an association between an institution of higher 

19 education and a consumer financial product or 

20 service to be affiliated if such association is 

21 solely based on an advertisement by a financial 

22 institution that is delivered to a wide and gen23 eral audience consisting of more than enrolled 

24 students at the institution of higher education. 

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1 ‘‘(3) CONSUMER FINANCIAL PRODUCT OR SERV2 ICE.—The term ‘consumer financial product or serv3 ice’ has the meaning given the term in section 1002 

4 of the Consumer Financial Protection Act of 2010 

5 (12 U.S.C. 5481). 

6 ‘‘(4) FINANCIAL INSTITUTION.—The term ‘fi7 nancial institution’ means— 

8 ‘‘(A) any person that engages in offering 

9 or providing a consumer financial product or 

10 service; and 

11 ‘‘(B) any affiliate of such person described 

12 in subparagraph (A) if such affiliate acts as a 

13 service provider to such person. 

14 ‘‘(5) INSTITUTION OF HIGHER EDUCATION.— 

15 The term ‘institution of higher education’ has the 

16 meaning given that term in section 102 of the High17 er Education Act of 1965 (20 U.S.C. 1002). 

18 ‘‘(6) PERSON.—The term ‘person’ means an in19 dividual, partnership, company, corporation, associa20 tion (incorporated or unincorporated), trust, estate, 

21 cooperative organization, or other entity. 

22 ‘‘(7) REVENUE-SHARING ARRANGEMENT.—The 

23 term ‘revenue-sharing arrangement’— 

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1 ‘‘(A) means an arrangement between an 

2 institution of higher education and a financial 

3 institution under which— 

4 ‘‘(i) a financial institution provides or 

5 issues a consumer financial product or 

6 service to college students attending the in7 stitution of higher education; 

8 ‘‘(ii) the institution of higher edu9 cation recommends, promotes, sponsors, or 

10 otherwise endorses the financial institution, 

11 or the consumer financial products or serv12 ices offered by the financial institution; 

13 and 

14 ‘‘(iii) the financial institution pays a 

15 fee or provides other material benefits, in16 cluding revenue or profit sharing, to the 

17 institution of higher education, or to an of18 ficer, employee, or agent of the institution 

19 of higher education, in connection with the 

20 consumer financial products and services 

21 provided to college students attending the 

22 institution of higher education; and 

23 ‘‘(B) does not include an arrangement 

24 solely based on a financial institution paying a 

25 fair market price to an institution of higher 

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1 education for the institution of higher education 

2 to advertise or market the financial institution 

3 to the general public. 

4 ‘‘(8) SERVICE PROVIDER.—The term ‘service 

5 provider’— 

6 ‘‘(A) means any person that provides a 

7 material service to another person in connection 

8 with the offering or provision by such other per9 son of a consumer financial product or service, 

10 including a person that— 

11 ‘‘(i) participates in designing, oper12 ating, or maintaining the consumer finan13 cial product or service; or 

14 ‘‘(ii) processes transactions relating to 

15 the consumer financial product or service 

16 (other than unknowingly or incidentally 

17 transmitting or processing financial data in 

18 a manner that such data is undifferen19 tiated from other types of data of the same 

20 form as the person transmits or processes); 

21 and 

22 ‘‘(B) does not include a person solely by 

23 virtue of such person offering or providing to 

24 another person— 

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1 ‘‘(i) a support service of a type pro2 vided to businesses generally or a similar 

3 ministerial service; or 

4 ‘‘(ii) time or space for an advertise5 ment for a consumer financial product or 

6 service through print, newspaper, or elec7 tronic media. 

8 ‘‘(b) DISCLOSURE OF AFFILIATION.— 

9 ‘‘(1) REPORTS BY FINANCIAL INSTITUTIONS.— 

10 ‘‘(A) IN GENERAL.—Not later than 180 

11 days after the date of enactment of the Higher 

12 Education Affordability Act, and annually 

13 thereafter, each financial institution shall sub14 mit a report to the Bureau containing the 

15 terms and conditions of all business, marketing, 

16 and promotional agreements that the financial 

17 institution has with any institution of higher 

18 education, or an alumni organization or founda19 tion that is an affiliate of or related to an insti20 tution of higher education, relating to any con21 sumer financial product or service offered to 

22 college students at institutions of higher edu23 cation. 

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1 ‘‘(B) DETAILS OF REPORT.—The informa2 tion required to be reported under subpara3 graph (A) includes— 

4 ‘‘(i) any memorandum of under5 standing between or among the financial 

6 institution and an institution of higher 

7 education, alumni association, or founda8 tion that directly or indirectly relates to 

9 any aspect of an agreement referred to in 

10 subparagraph (A) or controls or directs 

11 any obligations or distribution of benefits 

12 between or among the entities; and 

13 ‘‘(ii) the number and dollar amount 

14 outstanding of consumer financial products 

15 or services accounts covered by any such 

16 agreement that were originated during the 

17 period covered by the report, and the total 

18 number and dollar amount of consumer fi19 nancial products or services accounts cov20 ered by the agreement that were out21 standing at the end of such period. 

22 ‘‘(C) AGGREGATION BY INSTITUTION.— 

23 The information required to be reported under 

24 subparagraph (A) shall be aggregated with re25 spect to each institution of higher education or 

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1 alumni organization or foundation that is an af2 filiate of or related to the institution of higher 

3 education. 

4 ‘‘(2) REPORTS BY BUREAU.—The Bureau shall 

5 submit to Congress, and make available to the pub6 lic, an annual report that lists the information sub7 mitted to the Bureau under paragraph (1). 

8 ‘‘(3) ELECTRONIC DISCLOSURES.— 

9 ‘‘(A) POSTING AGREEMENTS.—Each finan10 cial institution shall establish and maintain an 

11 Internet site on which the financial institution 

12 shall post the written agreement between the fi13 nancial institution and the institution of higher 

14 education for each affiliated consumer financial 

15 product or service. 

16 ‘‘(B) FINANCIAL INSTITUTION TO PROVIDE

17 CONTRACTS TO THE BUREAU.—Each financial 

18 institution shall provide to the Bureau, in elec19 tronic format, the written agreements that it 

20 publishes on its Internet site pursuant to this 

21 paragraph. 

22 ‘‘(C) RECORD REPOSITORY.—The Bureau 

23 shall establish and maintain on its publicly 

24 available Internet site a central repository of 

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1 tions pursuant to this paragraph, and such 

2 agreements shall be easily accessible and re3 trievable by the public. 

4 ‘‘(D) EXCEPTION.—This paragraph shall 

5 not apply to individually negotiated changes to 

6 contractual terms, such as individually modified 

7 workouts or renegotiations of amounts owed by 

8 an institution of higher education. 

9 ‘‘(c) PROHIBITION OF REVENUE-SHARING ARRANGE10 MENT.—A financial institution that offers a consumer fi11 nancial product or service that is affiliated with an institu12 tion of higher education may not enter into a revenue13 sharing arrangement with the institution of higher edu14 cation. 

15 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec16 tion shall be construed to prohibit a financial institution 

17 from establishing a consumer product or service affiliated 

18 with an institution of higher education if— 

19 ‘‘(1) the consumer product or service will— 

20 ‘‘(A) assist college students in reducing 

21 costs or fees associated with the use of con22 sumer financial products or services; 

23 ‘‘(B) increase consumer choice; and 

24 ‘‘(C) enhance consumer protections; and 

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1 ‘‘(2) the financial institution is in compliance 

2 with the requirements of this Act.’’. 

3 SEC. 1016. IMPROVED CONSUMER PROTECTIONS FOR STU4 DENT LOAN SERVICING. 

5 (a) IN GENERAL.—The Truth in Lending Act (15 

6 U.S.C. 1601 et seq.) is amended by adding at the end 

7 the following new chapter: 

8 ‘‘CHAPTER 6—POSTSECONDARY 

9 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. 

10 ‘‘§ 188. Definitions 

11 ‘‘In this chapter: 

12 ‘‘(1) ALTERNATIVE REPAYMENT ARRANGE13 MENT.—The term ‘alternative repayment arrange14 ment’ means an agreed upon arrangement between 

15 a loan holder (or, for a Federal Direct Loan or a 

16 Federal Perkins Loan, the Secretary of Education or 

17 the institution of higher education that made such 

18 loan, respectively) or student loan servicer and a 

19 borrower— 

20 ‘‘(A) that is different than the terms under 

21 an existing postsecondary education loan; and 

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1 ‘‘(B) pursuant to which remittance of a 

2 monthly payment— 

3 ‘‘(i) satisfies the terms of the postsec4 ondary education loan; or 

5 ‘‘(ii) is not required for a period of 1 

6 or more months in order to satisfy the 

7 terms of the postsecondary education loan. 

8 ‘‘(2) BILLING GROUP.—The term ‘billing group’ 

9 means a postsecondary education loan account 

10 that— 

11 ‘‘(A) is serviced by a student loan servicer; 

12 and 

13 ‘‘(B) includes 2 or more postsecondary 

14 education loans that are in repayment status. 

15 ‘‘(3) BUREAU.—The term ‘Bureau’ has the 

16 meaning given that term in section 103. 

17 ‘‘(4) EFFECTIVE DATE OF TRANSFER.—The 

18 term ‘effective date of transfer’ means the date on 

19 which the first payment is due to a transferee 

20 servicer from a borrower under a postsecondary edu21 cation loan. 

22 ‘‘(5) FEDERAL DIRECT LOAN.—The term ‘Fed23 eral Direct Loan’ means a loan made under part D 

24 of title IV of the Higher Education Act of 1965 (20 

25 U.S.C. 1087a et seq.). 

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1 ‘‘(6) FEDERAL PERKINS LOAN.—The term 

2 ‘Federal Perkins Loan’ means a loan made under 

3 part E of title IV of the Higher Education Act of 

4 1965 (20 U.S.C. 1087aa et seq.). 

5 ‘‘(7) INSTITUTION OF HIGHER EDUCATION.— 

6 The term ‘institution of higher education’ has the 

7 meaning given that term in section 102 of the High8 er Education Act of 1965 (20 U.S.C. 1002). 

9 ‘‘(8) LATE FEE.—The term ‘late fee’ means a 

10 late fee, penalty, or adjustment to principal, imposed 

11 because of a late payment or delinquency by the bor12 rower under a postsecondary education loan. 

13 ‘‘(9) LOAN HOLDER.—The term ‘loan holder’ 

14 means a person who owns the title to or promissory 

15 note for a postsecondary education loan (except for 

16 a Federal Direct Loan or a Federal Perkins Loan). 

17 ‘‘(10) OPEN END CREDIT PLAN.—The term 

18 ‘open end credit plan’ has the meaning given that 

19 term in section 103. 

20 ‘‘(11) POSTSECONDARY EDUCATION EX21 PENSE.—The term ‘postsecondary education ex22 pense’ means any expense that is included as part 

23 of the cost of attendance (as that term is defined in 

24 section 472 of the Higher Education Act of 1965 

25 (20 U.S.C. 1087ll)) of a student. 

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1 ‘‘(12) POSTSECONDARY EDUCATION LENDER.— 

2 The term ‘postsecondary education lender’— 

3 ‘‘(A) means— 

4 ‘‘(i) a financial institution, as defined 

5 in section 3 of the Federal Deposit Insur6 ance Act (12 U.S.C. 1813) that solicits, 

7 makes, or extends postsecondary education 

8 loans; 

9 ‘‘(ii) a Federal credit union, as de10 fined in section 101 of the Federal Credit 

11 Union Act (12 U.S.C. 1752) that solicits, 

12 makes, or extends postsecondary education 

13 loans; and 

14 ‘‘(iii) any other person engaged in the 

15 business of soliciting, making, or extending 

16 postsecondary education loans; and 

17 ‘‘(B) does not include— 

18 ‘‘(i) the Secretary of Education; or 

19 ‘‘(ii) an institution of higher education 

20 with respect to any Federal Perkins Loan 

21 made by the institution. 

22 ‘‘(13) POSTSECONDARY EDUCATION LOAN.— 

23 The term ‘postsecondary education loan’— 

24 ‘‘(A) means a loan that is— 

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1 ‘‘(i) made, insured, or guaranteed 

2 under part B, D, or E of title IV of the 

3 Higher Education Act of 1965 (20 U.S.C. 

4 1071 et seq., 1087a et seq., 1087aa et 

5 seq.); or 

6 ‘‘(ii) issued or made by a postsec7 ondary education lender and is— 

8 ‘‘(I) extended to a borrower with 

9 the expectation that the amounts ex10 tended will be used in whole or in part 

11 to pay postsecondary education ex12 penses; or 

13 ‘‘(II) extended for the purpose of 

14 refinancing or consolidating 1 or more 

15 loans described in subclause (I) or 

16 clause (i); 

17 ‘‘(B) includes a private education loan (as 

18 defined in section 140(a)); and 

19 ‘‘(C) does not include a loan— 

20 ‘‘(i) made under an open-end credit 

21 plan; or 

22 ‘‘(ii) that is secured by real property. 

23 ‘‘(14) QUALIFIED WRITTEN REQUEST.— 

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (B), the term ‘qualified written request’ 

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1 means a written correspondence of a borrower 

2 (other than notice on a payment medium sup3 plied by the student loan servicer) transmitted 

4 by mail, facsimile, or electronically through an 

5 email address or website designated by the stu6 dent loan servicer to receive communications 

7 from borrowers that— 

8 ‘‘(i) includes, or otherwise enables the 

9 student loan servicer to identify, the name 

10 and account of the borrower; and 

11 ‘‘(ii) includes, to the extent applica12 ble— 

13 ‘‘(I) sufficient detail regarding 

14 the information sought by the bor15 rower; or 

16 ‘‘(II) a statement of the reasons 

17 for the belief of the borrower that 

18 there is an error regarding the ac19 count of the borrower. 

20 ‘‘(B) CORRESPONDENCE DELIVERED TO

21 OTHER ADDRESSES.— 

22 ‘‘(i) IN GENERAL.—A written cor23 respondence of a borrower is a qualified 

24 written request if the written correspond25 ence— 

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1 ‘‘(I) meets the requirements 

2 under clauses (i) and (ii) of subpara3 graph (A); and 

4 ‘‘(II) is transmitted to and re5 ceived by a student loan servicer at a 

6 mailing address, facsimile number, 

7 email address, or website address 

8 other than the address or number des9 ignated by that student loan servicer 

10 to receive communications from bor11 rowers. 

12 ‘‘(ii) DUTY TO TRANSFER.—A student 

13 loan servicer shall, within a reasonable pe14 riod of time, transfer a written correspond15 ence of a borrower received by the student 

16 loan servicer at a mailing address, fac17 simile number, email address, or website 

18 address other than the address or number 

19 designated by that student loan servicer to 

20 receive communications from borrowers to 

21 the correct address or appropriate office or 

22 other unit of the student loan servicer. 

23 ‘‘(iii) DATE OF RECEIPT.—A written 

24 correspondence of a borrower transferred 

25 in accordance with clause (ii) shall be 

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1 deemed to be received by the student loan 

2 servicer on the date on which the written 

3 correspondence is transferred to the cor4 rect address or appropriate office or other 

5 unit of the student loan servicer. 

6 ‘‘(15) STUDENT LOAN SERVICER.—The term 

7 ‘student loan servicer’— 

8 ‘‘(A) means a person who performs student 

9 loan servicing; 

10 ‘‘(B) includes a person performing student 

11 loan servicing for a postsecondary education 

12 loan on behalf of an institution of higher edu13 cation or the Secretary of Education under a 

14 contract or other agreement; 

15 ‘‘(C) does not include the Secretary of 

16 Education to the extent the Secretary directly 

17 performs student loan servicing for a postsec18 ondary education loan; and 

19 ‘‘(D) does not include an institution of 

20 higher education, to the extent that the institu21 tion directly performs student loan servicing for 

22 a Federal Perkins Loan made by the institu23 tion. 

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1 ‘‘(16) STUDENT LOAN SERVICING.—The term 

2 ‘student loan servicing’ includes any of the following 

3 activities: 

4 ‘‘(A) Receiving any scheduled periodic pay5 ments from a borrower under a postsecondary 

6 education loan (or notification of such pay7 ments). 

8 ‘‘(B) Applying payments described in sub9 paragraph (A) to an account of the borrower 

10 pursuant to the terms of the postsecondary edu11 cation loan or of the contract governing the 

12 servicing of the postsecondary education loan. 

13 ‘‘(C) During a period in which no payment 

14 is required on the postsecondary education 

15 loan— 

16 ‘‘(i) maintaining account records for 

17 the postsecondary education loan; and 

18 ‘‘(ii) communicating with the borrower 

19 on behalf of the loan holder or, with re20 spect to a Federal Direct Loan or Federal 

21 Perkins Loan, the Secretary of Education 

22 or the institution of higher education that 

23 made the loan, respectively. 

24 ‘‘(D) Interacting with a borrower to facili25 tate the activities described in subparagraphs 

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1 (A), (B), and (C), including activities to help 

2 prevent default by the borrower of the obliga3 tions arising from the postsecondary education 

4 loan. 

5 ‘‘(17) TRANSFER OF SERVICING.—The term 

6 ‘transfer of servicing’ means the assignment, sale, or 

7 transfer of any student loan servicing of a postsec8 ondary education loan from a transferor servicer to 

9 a transferee servicer. 

10 ‘‘(18) TRANSFEREE SERVICER.—The term 

11 ‘transferee servicer’ means the person to whom any 

12 student loan servicing of a postsecondary education 

13 loan is assigned, sold, or transferred. 

14 ‘‘(19) TRANSFEROR SERVICER.—The term 

15 ‘transferor servicer’ means the person who assigns, 

16 sells, or transfers any student loan servicing of a 

17 postsecondary education loan to another person. 

18 ‘‘§ 189. Servicing of postsecondary education loans 

19 ‘‘(a) STUDENT LOAN SERVICER REQUIREMENTS.— 

20 A student loan servicer may not— 

21 ‘‘(1) charge a fee for responding to a qualified 

22 written request under this chapter; 

23 ‘‘(2) fail to take timely action to respond to a 

24 qualified written request from a borrower to correct 

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1 an error relating to an allocation of payment or the 

2 payoff amount of the postsecondary education loan; 

3 ‘‘(3) fail to take reasonable steps to avail the 

4 borrower of all possible alternative repayment ar5 rangements to avoid default; 

6 ‘‘(4) fail to perform the obligations required 

7 under section 493C(d) of the Higher Education Act 

8 of 1965 (20 U.S.C. 1098e(d)); 

9 ‘‘(5) fail to respond within 10 business days to 

10 a request from a borrower to provide the name, ad11 dress, and other relevant contact information of the 

12 loan holder of the borrower’s postsecondary edu13 cation loan or, for a Federal Direct Loan or a Fed14 eral Perkins Loan, the Secretary of Education or the 

15 institution of higher education who made the loan, 

16 respectively; 

17 ‘‘(6) fail to comply with— 

18 ‘‘(A) any applicable requirement of the 

19 Servicemembers Civil Relief Act (50 U.S.C. 

20 App. 501 et seq.); or 

21 ‘‘(B) in the case of a postsecondary edu22 cation loan made, issued, or guaranteed under 

23 part B, D, or E of title IV of the Higher Edu24 cation Act of 1965 (20 U.S.C. 1070 et seq.), 

25 part A of title VII of the Public Health Service 

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1 Act (42 U.S.C. 292 et seq.), or part E of title 

2 VIII of such Act (42 U.S.C. 297a et seq.), any 

3 applicable requirement of the Act authorizing 

4 the postsecondary education loan; 

5 ‘‘(7) fail to comply with any other obligation 

6 that the Bureau, by regulation, has determined to be 

7 appropriate to carry out the consumer protection 

8 purposes of this chapter; or 

9 ‘‘(8) fail to perform other standard servicer’s 

10 duties. 

11 ‘‘(b) BORROWER INQUIRIES.— 

12 ‘‘(1) DUTY OF STUDENT LOAN SERVICERS TO

13 RESPOND TO BORROWER INQUIRIES.— 

14 ‘‘(A) NOTICE OF RECEIPT OF REQUEST.— 

15 If a borrower under a postsecondary education 

16 loan submits a qualified written request to the 

17 student loan servicer for information relating to 

18 the student loan servicing of the postsecondary 

19 education loan, the student loan servicer shall 

20 provide a written response acknowledging re21 ceipt of the qualified written request within 5 

22 business days unless any action requested by 

23 the borrower is taken within such period. 

24 ‘‘(B) ACTION WITH RESPECT TO IN25 QUIRY.—Not later than 30 business days after 

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1 the receipt from any borrower of any qualified 

2 written request under subparagraph (A) and, if 

3 applicable, before taking any action with respect 

4 to the qualified written request of the borrower, 

5 the student loan servicer shall— 

6 ‘‘(i) make appropriate corrections in 

7 the account of the borrower, including the 

8 crediting of any late fees, and transmit to 

9 the borrower a written notification of such 

10 correction (which shall include the name 

11 and toll-free or collect-call telephone num12 ber of a representative of the student loan 

13 servicer who can provide assistance to the 

14 borrower); 

15 ‘‘(ii) after conducting an investigation, 

16 provide the borrower with a written expla17 nation or clarification that includes— 

18 ‘‘(I) to the extent applicable, a 

19 statement of the reasons for which the 

20 student loan servicer believes the ac21 count of the borrower is correct as de22 termined by the student loan servicer; 

23 and 

24 ‘‘(II) the name and toll-free or 

25 collect-call telephone number of an inmstockstill on DSK4VPTVN1PROD with BILLS

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1 dividual employed by, or the office or 

2 department of, the student loan 

3 servicer who can provide assistance to 

4 the borrower; or 

5 ‘‘(iii) after conducting an investiga6 tion, provide the borrower with a written 

7 explanation or clarification that includes— 

8 ‘‘(I) information requested by the 

9 borrower or an explanation of why the 

10 information requested is unavailable 

11 or cannot be obtained by the student 

12 loan servicer; and 

13 ‘‘(II) the name and toll-free or 

14 collect-call telephone number of an in15 dividual employed by, or the office or 

16 department of, the student loan 

17 servicer who can provide assistance to 

18 the borrower. 

19 ‘‘(C) LIMITED EXTENSION OF RESPONSE

20 TIME.— 

21 ‘‘(i) IN GENERAL.—There may be 1 

22 extension of the 30-day period described in 

23 subparagraph (B) of not more than 15 

24 days if, before the end of such 30-day pe25 riod, the student loan servicer notifies the 

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1 borrower of the extension and the reasons 

2 for the delay in responding. 

3 ‘‘(ii) REPORTS TO BUREAU.—Each 

4 student loan servicer shall, on an annual 

5 basis, report to the Bureau the aggregate 

6 number of extensions sought by the stu7 dent loan servicer under clause (i). 

8 ‘‘(2) PROTECTION OF CREDIT INFORMATION.— 

9 During the 60-day period beginning on the date on 

10 which a student loan servicer receives a qualified 

11 written request from a borrower relating to a dis12 pute regarding payments by the borrower, a student 

13 loan servicer may not provide negative credit infor14 mation to any consumer reporting agency (as de15 fined in section 603 of the Truth in Lending Act (15 

16 U.S.C. 1681a)) relating to the subject of the quali17 fied written request or to such period, including any 

18 information relating to a late payment or payment 

19 owed by the borrower on the borrower’s postsec20 ondary education loan. 

21 ‘‘(3) SINGLE POINT OF CONTACT FOR CERTAIN

22 BORROWERS.—A student loan servicer shall des23 ignate an office or other unit of the student loan 

24 servicer to act as a point of contact regarding post25 secondary education loans for— 

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1 ‘‘(A) a borrower who is not less than 60 

2 days delinquent under the postsecondary edu3 cation loan; 

4 ‘‘(B) a borrower who seeks information re5 garding, seeks to enter an agreement for, or 

6 seeks to resolve an issue under a repayment op7 tion that requires subsequent submission of 

8 supporting documentation; and 

9 ‘‘(C) a borrower under a private education 

10 loan (as defined in section 140) who is seeking 

11 to modify the terms of the repayment of the 

12 postsecondary education loan because of hard13 ship. 

14 ‘‘(c) LIAISON FOR MEMBERS OF THE ARMED FORCES

15 AND VETERANS.— 

16 ‘‘(1) DEFINITION.—In this subsection, the term 

17 ‘veteran’ has the meaning given that term in section 

18 101 of title 38, United States Code. 

19 ‘‘(2) DESIGNATION.—A student loan servicer 

20 shall designate 1 or more employees to act as a liai21 son for members of the Armed Forces, veterans, and 

22 spouses and dependents of a member of the Armed 

23 Forces or a veteran, who shall be— 

24 ‘‘(A) responsible for answering inquiries 

25 relating to postsecondary education loans from 

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1 members of the Armed Forces, veterans, and 

2 spouses and dependents of a member of the 

3 Armed Forces or a veteran; and 

4 ‘‘(B) specially trained on the benefits avail5 able to members of the Armed Forces and vet6 erans under the Servicemembers Civil Relief 

7 Act (50 U.S.C. App. 501 et seq.) and other 

8 Federal and State laws relating to postsec9 ondary education loans. 

10 ‘‘(3) TOLL FREE NUMBER.—A student loan 

11 servicer shall establish and maintain a toll-free tele12 phone number that— 

13 ‘‘(A) may be used by a member of the 

14 Armed Forces, veteran, or spouse or dependent 

15 of a member of the Armed Forces or a veteran 

16 to connect directly to the liaison designated 

17 under paragraph (2); and 

18 ‘‘(B) shall be listed on the primary Inter19 net website of the student loan servicer and on 

20 monthly billing statements. 

21 ‘‘(d) TRANSFER OF SERVICING.— 

22 ‘‘(1) DISCLOSURE TO APPLICANT RELATING TO

23 TRANSFER OF SERVICING.— 

24 ‘‘(A) IN GENERAL.—A postsecondary edu25 cation lender shall disclose to each person who 

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1 applies for a postsecondary education loan, at 

2 the time of application for the postsecondary 

3 education loan, whether there may be a transfer 

4 of servicing of the postsecondary education loan 

5 at any time during which the postsecondary 

6 education loan is outstanding. 

7 ‘‘(B) NO LIABILITY.—A postsecondary 

8 education lender shall not be liable to a bor9 rower for failure to comply with subparagraph 

10 (A) if the application for a postsecondary edu11 cation loan was made before the regulations es12 tablished under section 191 take effect. 

13 ‘‘(2) NOTICE BY TRANSFEROR SERVICER AT

14 TIME OF TRANSFER OF SERVICING.— 

15 ‘‘(A) NOTICE REQUIREMENT.—A trans16 feror servicer shall notify the borrower under a 

17 postsecondary education loan, in writing, of any 

18 transfer of student loan servicing for the post19 secondary education loan (with respect to which 

20 such notice is made). 

21 ‘‘(B) TIME OF NOTICE.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided under clause (ii), the notice required 

24 under subparagraph (A) shall be made to 

25 the borrower not less than 15 days before 

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1 the effective date of transfer of the student 

2 loan servicing of the postsecondary edu3 cation loan. 

4 ‘‘(ii) EXCEPTION FOR CERTAIN PRO5 CEEDINGS.—The notice required under 

6 subparagraph (A) shall be made to the 

7 borrower not more than 30 days after the 

8 effective date of transfer of the student 

9 loan servicing of the borrower’s postsec10 ondary education loan if the transfer of 

11 student loan servicing is preceded by— 

12 ‘‘(I) termination of the contract 

13 for student loan servicing of the post14 secondary education loan for cause; 

15 ‘‘(II) commencement of bank16 ruptcy proceedings of the transferor 

17 servicer; or 

18 ‘‘(III) any other situation in 

19 which the Bureau determines that 

20 such exception is warranted. 

21 ‘‘(C) CONTENTS OF NOTICE.—The notice 

22 required under subparagraph (A) shall— 

23 ‘‘(i) be made in writing and, if the 

24 transferor servicer has an email address 

25 for the borrower, by email; and 

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1 ‘‘(ii) include— 

2 ‘‘(I) the effective date of the 

3 transfer; 

4 ‘‘(II) the name, address, website, 

5 and toll-free or collect-call telephone 

6 number of the transferee servicer; 

7 ‘‘(III) a toll-free or collect-call 

8 telephone number for an individual 

9 employed by the transferor servicer, 

10 or the office or department of, the 

11 transferor servicer that can be con12 tacted by the borrower to answer in13 quiries relating to the transfer of serv14 icing; 

15 ‘‘(IV) the name and toll-free or 

16 collect-call telephone number for an 

17 individual employed by the transferee 

18 servicer, or the office or department 

19 of, the transferee servicer that can be 

20 contacted by the borrower to answer 

21 inquiries relating to the transfer of 

22 servicing; 

23 ‘‘(V) the date on which the trans24 feror servicer will cease to accept pay25 ments relating to the borrower’s postmstockstill on DSK4VPTVN1PROD with BILLS

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1 secondary education loan and the date 

2 on which the transferee servicer will 

3 begin to accept such payments; 

4 ‘‘(VI) a statement that the trans5 fer of student loan servicing of the 

6 postsecondary education loan does not 

7 affect any term or condition of the 

8 postsecondary education loan other 

9 than terms directly related to the stu10 dent loan servicing of the postsec11 ondary education loan; 

12 ‘‘(VII) a statement disclosing— 

13 ‘‘(aa) whether borrower au14 thorization for recurring elec15 tronic funds transfers will be 

16 transferred to the transferee 

17 servicer; and 

18 ‘‘(bb) if any such recurring 

19 electronic funds transfers cannot 

20 be transferred, information as to 

21 how the borrower may establish 

22 new recurring electronic funds 

23 transfers in connection with 

24 transfer of servicing to the trans25 feree servicer; 

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1 ‘‘(VIII) a statement disclosing— 

2 ‘‘(aa) the application of all 

3 payments and charges relating to 

4 the borrower’s postsecondary 

5 education loan as of the effective 

6 date of the transfer, including— 

7 ‘‘(AA) the date the last 

8 payment of the borrower 

9 was received; 

10 ‘‘(BB) the date the last 

11 late fee, arrearages, or other 

12 charge was applied; and 

13 ‘‘(CC) the amount of 

14 the last payment allocated to 

15 principal, interest, and other 

16 charges; 

17 ‘‘(bb) the status of the bor18 rower’s postsecondary education 

19 loan as of the effective date of 

20 the transfer, including whether 

21 the loan is in default; 

22 ‘‘(cc) whether any applica23 tion for an alternative repayment 

24 arrangement submitted by the 

25 borrower is pending; and 

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1 ‘‘(dd) an itemization and ex2 planation for all arrearages 

3 claimed to be due as of the effec4 tive date of the transfer; 

5 ‘‘(IX) a detailed description of 

6 any benefit, alternative repayment ar7 rangement, or other term or condition 

8 arranged between the transferor 

9 servicer and the borrower that is not 

10 included in the terms of the promis11 sory note; 

12 ‘‘(X) a detailed description of any 

13 item identified under subclause (VIII) 

14 that will cease to apply upon transfer, 

15 including an explanation; and 

16 ‘‘(XI) information on how to file 

17 a complaint with the Bureau. 

18 ‘‘(3) NOTICE BY TRANSFEREE SERVICER AT

19 TIME OF TRANSFER OF SERVICING.— 

20 ‘‘(A) NOTICE REQUIREMENT.—A trans21 feree servicer shall notify the borrower under a 

22 postsecondary education loan, in writing, of any 

23 transfer of servicing of the postsecondary edu24 cation loan. 

25 ‘‘(B) TIME OF NOTICE.— 

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1 ‘‘(i) IN GENERAL.—Except as pro2 vided in clause (ii), the notice required 

3 under subparagraph (A) shall be made to 

4 the borrower not more than 15 days after 

5 the effective date of transfer of the student 

6 loan servicing of the borrower’s postsec7 ondary education loan. 

8 ‘‘(ii) EXCEPTION FOR CERTAIN PRO9 CEEDINGS.—The notice required under 

10 subparagraph (A) shall be made to the 

11 borrower not more than 30 days after the 

12 effective date of transfer of the student 

13 loan servicing of the student loan servicing 

14 of borrower’s postsecondary education loan 

15 if the transfer of servicing is preceded 

16 by— 

17 ‘‘(I) termination of the contract 

18 for student loan servicing the postsec19 ondary education loan for cause; 

20 ‘‘(II) commencement of bank21 ruptcy proceedings of the transferor 

22 servicer; or 

23 ‘‘(III) any other situation in 

24 which the Bureau determines that 

25 such exception is warranted. 

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1 ‘‘(C) CONTENTS OF NOTICE.—The notice 

2 required under subparagraph (A) shall be made 

3 in the same manner as under paragraph (2)(C) 

4 and include the information described in para5 graph (2)(C). 

6 ‘‘(4) METHOD OF NOTIFICATION.—The notifica7 tion required under this subsection shall be provided 

8 in writing. 

9 ‘‘(5) TREATMENT OF LOAN PAYMENTS DURING

10 TRANSFER PERIOD.— 

11 ‘‘(A) IN GENERAL.—During the 60-day pe12 riod beginning on the effective date of transfer 

13 relating to a borrower’s postsecondary edu14 cation loan, a late fee may not be imposed on 

15 the borrower with respect to any payment on 

16 the postsecondary education loan, and no such 

17 payment may be treated as late for any other 

18 purposes, if the payment is received by the 

19 transferor servicer (rather than the transferee 

20 servicer who should properly receive payment) 

21 before the due date applicable to such payment. 

22 ‘‘(B) NOTICE.—To the maximum extent 

23 practicable, a transferor servicer shall notify a 

24 borrower, both in writing and by telephone, re25 garding any payment received by the transferor 

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1 servicer (rather than the transferee servicer 

2 who should properly receive payment). 

3 ‘‘(6) ELECTRONIC FUND TRANSFER AUTHOR4 ITY.—A transferee servicer shall make available to a 

5 borrower whose student loan servicing is transferred 

6 to the transferee servicer a simple, online process 

7 through which the borrower may transfer to the 

8 transferee servicer any existing authority for an elec9 tronic fund transfer that the borrower had provided 

10 to the transferor servicer. 

11 ‘‘(7) SERVICER LIABILITY.— 

12 ‘‘(A) EFFECTIVE DATE OF REGULA13 TIONS.—A student loan servicer shall not be 

14 liable to a borrower for failure to comply with 

15 paragraph (2) or (3) with respect to a transfer 

16 of student loan servicing before the regulations 

17 under section 191 take effect. 

18 ‘‘(B) MITIGATING ACTION.—A student 

19 loan servicer or a postsecondary education lend20 er shall not be liable to a borrower for failure 

21 to comply with a requirement under this section 

22 if, not later than 60 days after discovering an 

23 error and before the commencement of an ac24 tion under section 130 or the receipt of written 

25 notice of the error from the borrower, the stumstockstill on DSK4VPTVN1PROD with BILLS

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1 dent loan servicer notifies the borrower of the 

2 error and makes any adjustments in the appro3 priate account that are necessary to ensure that 

4 the borrower will not be required to pay an 

5 amount greater than the amount that the bor6 rower otherwise would have paid. 

7 ‘‘§ 190. Payments and fees 

8 ‘‘(a) PROHIBITION ON RECOMMENDING DEFAULT.— 

9 A loan holder or student loan servicer may not recommend 

10 or encourage default or delinquency on an existing post11 secondary education loan prior to and in connection with 

12 the process of qualifying for or enrolling in an alternative 

13 repayment arrangement, including the origination of a 

14 new postsecondary education loan that refinances all or 

15 any portion of such existing loan or debt. 

16 ‘‘(b) LATE FEES.— 

17 ‘‘(1) IN GENERAL.—A late fee may not be 

18 charged to a borrower under a postsecondary edu19 cation loan under any of the following cir20 cumstances, either individually or in combination: 

21 ‘‘(A) On a per-loan basis when a borrower 

22 has multiple postsecondary education loans in a 

23 billing group. 

24 ‘‘(B) In an amount greater than 4 percent 

25 of the amount of the payment past due. 

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1 ‘‘(C) Before the end of the 15-day period 

2 beginning on the date the payment is due. 

3 ‘‘(D) More than once with respect to a sin4 gle late payment. 

5 ‘‘(E) The borrower fails to make a sin6 gular, non successive regularly-scheduled pay7 ment on the postsecondary education loan. 

8 ‘‘(2) COORDINATION WITH SUBSEQUENT LATE

9 FEES.—No late fee may be charged to a borrower 

10 under a postsecondary education loan relating to an 

11 insufficient payment if the payment is made on or 

12 before the due date of the payment, or within any 

13 applicable grace period for the payment, if the insuf14 ficiency is attributable only to a late fee relating to 

15 an earlier payment, and the payment is otherwise a 

16 full payment for the applicable period. 

17 ‘‘(c) ACCELERATION OF POSTSECONDARY EDU18 CATION LOANS.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), a postsecondary education loan executed 

21 after the date of enactment of the Higher Education 

22 Affordability Act may not include a provision that 

23 permits the loan holder or student loan servicer to 

24 accelerate, in whole or in part, payments on the 

25 postsecondary education loan. 

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1 ‘‘(2) ACCELERATION CAUSED BY A PAYMENT

2 DEFAULT.—A postsecondary education loan may in3 clude a provision that permits acceleration of the 

4 postsecondary education loan in cases of payment 

5 default. 

6 ‘‘(d) MODIFICATION AND DEFERRAL FEES PROHIB7 ITED.—A loan holder or student loan servicer may not 

8 charge a borrower any fee to modify, renew, extend, or 

9 amend a postsecondary education loan, or to defer any 

10 payment due under the terms of a postsecondary edu11 cation loan. 

12 ‘‘(e) PAYOFF STATEMENT.— 

13 ‘‘(1) FEES.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraph (B) or (D), a loan holder or stu16 dent loan servicer may not charge a fee for in17 forming or transmitting to a borrower or a per18 son authorized by the borrower the balance due 

19 to pay off the outstanding balance on a postsec20 ondary education loan. 

21 ‘‘(B) TRANSACTION FEE.—If a loan holder 

22 or student loan servicer provides the informa23 tion described in subparagraph (A) by facsimile 

24 transmission or courier service, the loan holder 

25 or student loan servicer may charge a procmstockstill on DSK4VPTVN1PROD with BILLS

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1 essing fee to cover the cost of such transmission 

2 or service in an amount that is not more than 

3 a comparable fee imposed for similar services 

4 provided in connection with consumer credit 

5 transactions. 

6 ‘‘(C) FEE DISCLOSURE.—A loan holder or 

7 student loan servicer shall disclose to the bor8 rower that payoff balances are available for free 

9 pursuant to subparagraph (A) before charging 

10 a transaction fee under subparagraph (B). 

11 ‘‘(D) MULTIPLE REQUESTS.—If a loan 

12 holder or student loan servicer has provided the 

13 information described in subparagraph (A) 

14 without charge, other than the transaction fee 

15 permitted under subparagraph (B), on 4 or 

16 more occasions during a calendar year, the loan 

17 holder or student loan servicer may thereafter 

18 charge a reasonable fee for providing such in19 formation during the remainder of the calendar 

20 year. 

21 ‘‘(2) PROMPT DELIVERY.—A loan holder or a 

22 student loan servicer that has received a request by 

23 a borrower or a person authorized by a borrower for 

24 the information described in paragraph (1)(A) shall 

25 provide such information to the borrower or person 

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1 authorized by the borrower not later than 5 business 

2 days after receiving such request. 

3 ‘‘(f) INTEREST RATE AND TERM CHANGES FOR CER4 TAIN POSTSECONDARY EDUCATION LOANS.— 

5 ‘‘(1) NOTIFICATION REQUIREMENTS.— 

6 ‘‘(A) IN GENERAL.—Except as provided in 

7 paragraph (3), a student loan servicer shall pro8 vide written notice to a borrower of any mate9 rial change in the terms of the postsecondary 

10 education loan, including an increase in the in11 terest rate, not later than 45 days before the ef12 fective date of the change or increase. 

13 ‘‘(B) MATERIAL CHANGES IN TERMS.—The 

14 Bureau shall, by regulation, establish guidelines 

15 for determining which changes in terms are ma16 terial under subparagraph (A). 

17 ‘‘(2) LIMITS ON INTEREST RATE AND FEE IN18 CREASES APPLICABLE TO OUTSTANDING BAL19 ANCE.—Except as provided in paragraph (3), a loan 

20 holder or student loan servicer may not increase the 

21 interest rate or other fee applicable to an out22 standing balance on a postsecondary education loan. 

23 ‘‘(3) EXCEPTIONS.—The requirements under 

24 paragraphs (1) and (2) shall not apply to— 

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1 ‘‘(A) an increase in any applicable variable 

2 interest rate incorporated in the terms of a 

3 postsecondary education loan that provides for 

4 changes in the interest rate according to oper5 ation of an index that is not under the control 

6 of the loan holder or student loan servicer and 

7 is published for viewing by the general public; 

8 ‘‘(B) an increase in interest rate due to the 

9 completion of a workout or temporary hardship 

10 arrangement by the borrower or the failure of 

11 the borrower to comply with the terms of a 

12 workout or temporary hardship arrangement 

13 if— 

14 ‘‘(i) the interest rate applicable to a 

15 category of transactions following any such 

16 increase does not exceed the rate or fee 

17 that applied to that category of trans18 actions prior to commencement of the ar19 rangement; and 

20 ‘‘(ii) the loan holder or student loan 

21 servicer has provided the borrower, prior to 

22 the commencement of such arrangement, 

23 with clear and conspicuous disclosure of 

24 the terms of the arrangement (including 

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1 any increases due to such completion or 

2 failure); and 

3 ‘‘(C) an increase in interest rate due to a 

4 provision included within the terms of a post5 secondary education loan that provides for a 

6 lower interest rate based on the borrower’s 

7 agreement to a prearranged plan that author8 izes recurring electronic funds transfers if— 

9 ‘‘(i) the borrower withdraws the bor10 rower’s authorization of the prearranged 

11 recurring electronic funds transfer plan; 

12 and 

13 ‘‘(ii) after withdrawal of the bor14 rower’s authorization and prior to increas15 ing the interest rate, the loan holder or 

16 student loan servicer has provided the bor17 rower with clear and conspicuous disclo18 sure of the impending change in borrower’s 

19 interest rate and a reasonable opportunity 

20 to reauthorize the prearranged electronic 

21 funds transfers plan. 

22 ‘‘(g) PROMPT AND FAIR CREDITING OF PAY23 MENTS.— 

24 ‘‘(1) PROMPT CREDITING.—Payments received 

25 from a borrower under a postsecondary education 

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1 loan by the student loan servicer shall be posted 

2 promptly to the account of the borrower as specified 

3 in regulations of the Bureau. Such regulations shall 

4 prevent a fee from being imposed on any borrower 

5 if the student loan servicer has received the bor6 rower’s payment in readily identifiable form, by 5:00 

7 p.m. on the date on which such payment is due, in 

8 the amount, manner, and location specified by the 

9 student loan servicer. 

10 ‘‘(2) APPLICATION OF PAYMENTS.— 

11 ‘‘(A) IN GENERAL.— 

12 ‘‘(i) TREATMENTS OF PREPAY13 MENTS.—A student loan servicer that serv14 ices a billing group of a borrower shall, 

15 upon receipt of a payment from the bor16 rower, apply amounts in excess of the 

17 monthly payment amount first to the prin18 cipal of the postsecondary education loan 

19 bearing the highest interest rate, and then 

20 to each successive principal balance bear21 ing the next highest interest rate until the 

22 payment is exhausted, unless otherwise 

23 specified in writing by the borrower. 

24 ‘‘(ii) TREATMENT OF UNDERPAY25 MENTS.— 

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1 ‘‘(I) REGULATIONS REQUIRED.— 

2 Not later than 1 year after the date 

3 on which the Bureau submits the first 

4 report required under section 1018 of 

5 the Higher Education Affordability 

6 Act, the Bureau shall issue regula7 tions establishing the manner in which 

8 a student loan servicer shall apply 

9 amounts less than the total payment 

10 due during the billing cycle. 

11 ‘‘(II) CONSIDERATIONS.—In 

12 issuing the regulations required under 

13 subclause (I), the Bureau shall con14 sider— 

15 ‘‘(aa) the impact of the reg16 ulations on— 

17 ‘‘(AA) outstanding debt 

18 of borrowers and the imposi19 tion of late fees; 

20 ‘‘(BB) credit ratings of 

21 borrowers; and 

22 ‘‘(CC) continued avail23 ability of alternative repay24 ment arrangements; 

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1 ‘‘(bb) any other factors the 

2 Bureau determines are appro3 priate; and 

4 ‘‘(cc) the findings from the 

5 report required under section 

6 1018 of the Higher Education 

7 Affordability Act. 

8 ‘‘(B) CHANGES BY STUDENT LOAN

9 SERVICER.—If a student loan servicer makes a 

10 material change in the mailing address, office, 

11 or procedures for handling borrower payments, 

12 and such change causes a material delay in the 

13 crediting of a payment made during the 60-day 

14 period following the date on which such change 

15 took effect, the student loan servicer may not 

16 impose any late fee for a late payment on the 

17 postsecondary education loan to which such 

18 payment was credited. 

19 ‘‘(h) ADDITIONAL REQUIREMENTS FOR PREPAY20 MENTS.— 

21 ‘‘(1) ADVANCEMENT OF DATE DUE.—A student 

22 loan servicer may advance the date due of the next 

23 regularly scheduled installment payment of a post24 secondary education loan upon remittance of a pre25 payment by the borrower, if— 

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1 ‘‘(A) the borrower’s payment is sufficient 

2 to satisfy at least 1 additional installment pay3 ment; 

4 ‘‘(B) the number of billing cycles for which 

5 the date due is advanced is equal to total num6 ber of installment payments satisfied by the 

7 prepayment; and 

8 ‘‘(C) upon receipt by the student loan 

9 servicer, the prepayment is applied— 

10 ‘‘(i) to the principal balance of the 

11 postsecondary education loan; or 

12 ‘‘(ii) if the student loan servicer serv13 ices a billing group of a borrower, to the 

14 principal balance of the postsecondary edu15 cation loan with the highest interest rate 

16 in such billing group. 

17 ‘‘(2) BORROWER RIGHTS.—A student loan 

18 servicer shall provide a clear, understandable and 

19 transparent means, including through submission of 

20 an online form, for the borrower to elect to— 

21 ‘‘(A) instruct the servicer not to advance 

22 the date due of future installment payments as 

23 described in paragraph (1); and 

24 ‘‘(B) voluntarily make payments in excess 

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1 ment payment amount on a periodic basis via 

2 recurring electronic funds transfers or other 

3 automatic payment arrangement. 

4 ‘‘(i) TIMING OF PAYMENTS.—A student loan servicer 

5 may not treat a payment on a postsecondary education 

6 loan as late for any purpose unless the student loan 

7 servicer has adopted reasonable procedures designed to en8 sure that each billing statement required under subsection 

9 (j)(1) is mailed or delivered to the consumer not later than 

10 21 days before the payment due date. 

11 ‘‘(j) OTHER REQUIREMENTS FOR POSTSECONDARY

12 EDUCATION LOANS.— 

13 ‘‘(1) STATEMENT REQUIRED WITH EACH BILL14 ING CYCLE.—A student loan servicer for each bor15 rower’s account that is being serviced by that stu16 dent loan servicer and that includes a postsecondary 

17 education loan shall transmit to the borrower, for 

18 each billing cycle at the end of which there is an 

19 outstanding balance in that account, a statement 

20 that includes— 

21 ‘‘(A) the outstanding balance in the ac22 count at the beginning of the billing cycle; 

23 ‘‘(B) the total amount credited to the ac24 count during the billing cycle; 

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1 ‘‘(C) the amount of any fee added to the 

2 account during the billing cycle, itemized to 

3 show the amounts, if any, due to the applica4 tion of an increased interest rate, and the 

5 amount, if any, imposed as a minimum or fixed 

6 charge; 

7 ‘‘(D) the balance on which the fee de8 scribed in subparagraph (C) was computed and 

9 a statement of how the balance was determined; 

10 ‘‘(E) whether the balance described in sub11 paragraph (D) was determined without first de12 ducting all payments and other credits during 

13 the billing cycle, and the amount of any such 

14 payments and credits; 

15 ‘‘(F) the outstanding balance in the ac16 count at the end of the billing cycle; 

17 ‘‘(G) the date by which, or the period with18 in which, payment must be made to avoid late 

19 fees, if any; 

20 ‘‘(H) the address of the student loan 

21 servicer to which the borrower may direct bill22 ing inquiries; 

23 ‘‘(I) the amount of any payments or other 

24 credits during the billing cycle that was applied 

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1 to pay down principal, and the amount applied 

2 to interest; 

3 ‘‘(J) in the case of a billing group, the allo4 cation of any payments or other credits during 

5 the billing cycle to each of the postsecondary 

6 education loans in the billing group; and 

7 ‘‘(K) information on how to file a com8 plaint with the Bureau and with the ombuds9 man designated pursuant to section 1035 of the 

10 Dodd-Frank Wall Street Reform and Consumer 

11 Protection Act (12 U.S.C. 5535). 

12 ‘‘(2) PAYMENT DEADLINES AND PENALTIES.— 

13 ‘‘(A) DISCLOSURE OF PAYMENT DEAD14 LINES.—In the case of a postsecondary edu15 cation loan account under which a late fee or 

16 charge may be imposed due to the failure of the 

17 borrower to make payment on or before the due 

18 date for such payment, the billing statement re19 quired under paragraph (1) with respect to the 

20 account shall include, in a conspicuous location 

21 on the billing statement, the date on which the 

22 payment is due or, if different, the date on 

23 which a late fee will be charged, together with 

24 the amount of the late fee to be imposed if pay25 ment is made after that date. 

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1 ‘‘(B) PAYMENTS AT LOCAL BRANCHES.—If 

2 the loan holder, in the case of a postsecondary 

3 education loan account referred to in subpara4 graph (A), is a financial institution that main5 tains a branch or office at which payments on 

6 any such account are accepted from the bor7 rower in person, the date on which the borrower 

8 makes a payment on the account at such 

9 branch or office shall be considered to be the 

10 date on which the payment is made for pur11 poses of determining whether a late fee may be 

12 imposed due to the failure of the borrower to 

13 make payment on or before the due date for 

14 such payment. 

15 ‘‘(k) CORRECTIONS AND UNINTENTIONAL VIOLA16 TIONS.—A loan holder or student loan servicer who, when 

17 acting in good faith, fails to comply with any requirement 

18 under this section will to be deemed to have not violated 

19 such requirement if the loan holder or student loan 

20 servicer establishes that— 

21 ‘‘(1) not later than 30 days after the date of 

22 execution of the postsecondary education loan and 

23 prior to the institution of any action under subtitle 

24 E of title X of the Dodd-Frank Wall Street Reform 

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1 and Consumer Protection Act (12 U.S.C. 5561 et 

2 seq.)— 

3 ‘‘(A) the borrower is notified of or dis4 covers the compliance failure; 

5 ‘‘(B) appropriate restitution to the bor6 rower is made; and 

7 ‘‘(C) necessary adjustments are made to 

8 the postsecondary education loan that are nec9 essary to bring the postsecondary education 

10 loan into compliance with the requirements of 

11 this section; or 

12 ‘‘(2) not later than 60 days after the loan hold13 er or student loan servicer discovers or is notified of 

14 an unintentional violation or bona fide error and 

15 prior to the institution of any action under subtitle 

16 E of title X of the Dodd-Frank Wall Street Reform 

17 and Consumer Protection Act (12 U.S.C. 5561 et 

18 seq.)— 

19 ‘‘(A) the borrower is notified of the compli20 ance failure; 

21 ‘‘(B) appropriate restitution to the bor22 rower is made; and 

23 ‘‘(C) necessary adjustments are made to 

24 the postsecondary education loan that are nec25 essary to bring the postsecondary education 

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1 loan into compliance with the requirements of 

2 this section. 

3 ‘‘(l) RULE OF CONSTRUCTION FOR FEDERAL POST4 SECONDARY EDUCATION LOANS.—Nothing in this section 

5 shall be construed to supercede any reporting or disclosure 

6 requirement required for a postsecondary education loan 

7 that is made, issued, or guaranteed under part B, D, or 

8 E of title IV of the Higher Education Act of 1965 (20 

9 U.S.C. 1070 et seq.), part A of title VII of the Public 

10 Health Service Act (42 U.S.C. 292 et seq.), or part E of 

11 title VIII of such Act (42 U.S.C. 297a et seq.), if such 

12 reporting requirement does not directly conflict with the 

13 requirements of this section. 

14 ‘‘§ 191. Authority of Bureau 

15 ‘‘(a) AUTHORIZATION.—The Bureau, in consultation 

16 with the Secretary of Education, is authorized to prescribe 

17 such rules and regulations, make such interpretations, and 

18 grant such reasonable exemptions, in accordance with, and 

19 as may be necessary to achieve the purposes of, this chap20 ter. 

21 ‘‘(b) DISCLOSURE REQUIREMENTS.— 

22 ‘‘(1) IN GENERAL.—The Bureau shall, in con23 sultation with the Secretary of Education, issue reg24 ulations requiring disclosures, including the disclo25 sures required under section 483A of the Higher 

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1 Education Act of 1965, to borrowers that clearly 

2 and conspicuously inform borrowers of the protec3 tions afforded to them under this chapter and under 

4 other provisions relating to postsecondary education 

5 loans. The Bureau shall consider whether special 

6 disclosures are required to accommodate the unique 

7 needs of borrowers who are members of the Armed 

8 Forces or veterans. 

9 ‘‘(2) REGULATIONS REQUIRED.—The regula10 tions issued under paragraph (1) shall— 

11 ‘‘(A) ensure that a borrower is made aware 

12 of— 

13 ‘‘(i) all repayment options available to 

14 the borrower, including the availability of 

15 refinancing products, and the effect of 

16 each repayment option on the total amount 

17 owed under, total cost of, and time to 

18 repay the postsecondary education loan; 

19 ‘‘(ii) the risks and costs associated 

20 with default; and 

21 ‘‘(iii) the eligibility of certain bor22 rowers for discharge of certain postsec23 ondary education loans; and 

24 ‘‘(B) require provision of information 

25 about how a borrower can file a complaint with 

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1 the Bureau relating to an alleged violation of 

2 this chapter. 

3 ‘‘(3) TIMING OF DISCLOSURES.—The regula4 tions issued under paragraph (1) shall specify the 

5 timing of the disclosures described in paragraph 

6 (2)(A). Such timing may include— 

7 ‘‘(A) before the first payment is due under 

8 the postsecondary education loan; or 

9 ‘‘(B) when the borrower— 

10 ‘‘(i) first exhibits difficulty in making 

11 payments under the postsecondary edu12 cation loan; 

13 ‘‘(ii) is 30 days delinquent under the 

14 postsecondary education loan; 

15 ‘‘(iii) is 60 days delinquent under the 

16 postsecondary education loan; 

17 ‘‘(iv) notifies the student loan servicer 

18 of the intent of the borrower to forbear or 

19 defer payment under the postsecondary 

20 education loan; 

21 ‘‘(v) inquires about or requests the re22 financing or consolidation of the postsec23 ondary education loan; or 

24 ‘‘(vi) informs the student loan 

25 servicer, or a postsecondary education 

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1 lender acting on behalf of the borrower in2 forms the student loan servicer, that the 

3 borrower will be refinancing or consoli4 dating the loan. 

5 ‘‘(c) UNFAIR, DECEPTIVE, AND ABUSIVE ACTS OR

6 LENDING PRACTICES.—The Bureau, by regulation or 

7 order, shall prohibit acts or practices in connection with— 

8 ‘‘(1) a postsecondary education loan that the 

9 Bureau finds to be unfair, deceptive, or designed to 

10 evade the provisions of this chapter; or 

11 ‘‘(2) the refinancing of a postsecondary edu12 cation loan, including facilitation of refinancing or 

13 enrollment in an alternative repayment arrangement, 

14 that the Bureau finds to be associated with abusive 

15 lending practices, or that are otherwise not in the in16 terest of the borrower. 

17 ‘‘(d) CONSULTATION WITH SECRETARY OF EDU18 CATION.—In order to avoid duplication, to the extent prac19 ticable, the Bureau, in consultation with the Secretary of 

20 Education, may consider— 

21 ‘‘(1) obligations of student loan servicers under 

22 title IV of the Higher Education Act of 1965 (20 

23 U.S.C. 1070 et seq.); and 

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1 ‘‘(2) findings from the report authorized under 

2 section 456(d) of the Higher Education Act of 1965 

3 (20 U.S.C. 1087f(d)). 

4 ‘‘§ 192. State laws unaffected; inconsistent Federal 

5 and State provisions 

6 ‘‘Nothing in this chapter shall annul, alter, or affect, 

7 or exempt any person subject to the provisions of this 

8 chapter from complying with the laws of any State with 

9 respect to student loan servicing practices, fees on postsec10 ondary education loans, or other requirements relating to 

11 postsecondary education loans, except to the extent that 

12 those laws are inconsistent with any provision of this chap13 ter, and then only to the extent of the inconsistency. The 

14 Bureau is authorized to determine whether such inconsist15 encies exist. The Bureau may not determine that any 

16 State law is inconsistent with any provision of this chapter 

17 if the Bureau determines that such law gives greater pro18 tection to the consumer. In making these determinations 

19 the Bureau shall consult with the appropriate Federal 

20 agencies.’’. 

21 Subpart 3—Regulations and Reports 

22 SEC. 1017. IMPLEMENTATION OF REGULATIONS. 

23 (a) IN GENERAL.—Except as otherwise provided in 

24 this part or the amendments made by this part, the Bu25 reau, in consultation with the Secretary of Education, 

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1 shall issue the regulations required under this part and 

2 the amendments made by this part not later than 1 year 

3 after the date of enactment of this Act. 

4 (b) TRANSITIONAL PERIOD.—Any requirement under 

5 section 433 of the Higher Education Act of 1965 (20 

6 U.S.C. 1083), and any regulation issued pursuant to such 

7 section, that is determined by the Bureau to be duplicative 

8 of a regulation issued pursuant to this part or amendment 

9 made by this part shall continue to be in effect only until 

10 the effective date of such regulation issued pursuant to 

11 this part or the amendment made by this part. 

12 SEC. 1018. REPORT ON CREDIT REPORTING AND STUDENT 

13 LENDING. 

14 (a) IN GENERAL.—Not later than 1 year after the 

15 date of enactment of this Act, and as frequently thereafter 

16 as the Director of the Bureau determines an update is 

17 necessary, the Bureau shall submit to the appropriate 

18 committees of Congress a report on the impact of postsec19 ondary education loan debt, which shall include an evalua20 tion, analysis, and discussion of— 

21 (1) the impact on the credit of borrowers of— 

22 (A) the common use of billing groups for 

23 postsecondary education loans; 

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1 (B) the delinquency of 2 or more postsec2 ondary education loans contained in a billing 

3 group; and 

4 (C) the availability of alternative repay5 ment arrangements for postsecondary education 

6 loans; 

7 (2) what processes student loan servicers imple8 ment in furnishing student loan information to cred9 it reporting agencies; 

10 (3) the most effective ways to repair the credit 

11 history of a borrower after a default or delinquency 

12 under a postsecondary education loan; 

13 (4) legislative or regulatory changes the Bureau 

14 determines would better assist borrowers under post15 secondary education loans; 

16 (5) the manner in which information about re17 payment information about postsecondary education 

18 loans is furnished to consumer reporting agencies 

19 and the impact on the credit profile and credit score 

20 of the borrower when servicing rights for postsec21 ondary education loans are transferred between stu22 dent loan servicers; and 

23 (6) any other topics related to credit reporting 

24 of postsecondary education loans the Bureau deter25 mines are necessary. 

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1 (b) DISAGGREGATE.—To the extent practicable, the 

2 Director of the Bureau shall disaggregate the findings of 

3 the report under paragraph (1) according to race, eth4 nicity, income level, and geography. 

5 SEC. 1019. OMBUDSMAN REPORT ON PRIVATE EDUCATION 

6 LOAN MARKET. 

7 Not less than once every 2 years, the ombudsman 

8 designated pursuant to section 1035 of the Dodd-Frank 

9 Wall Street Reform and Consumer Protection Act (12 

10 U.S.C. 5535) shall submit to the appropriate committees 

11 of Congress a report— 

12 (1) providing a detailed analysis of material 

13 terms and conditions in private education loans; and 

14 (2) describing changes in the availability of pri15 vate education loans and other consumer financial 

16 products used to finance postsecondary education ex17 penses. 

18 PART B—INTERNAL REVENUE CODE OF 1986 

19 SEC. 1022. INFORMATION SHARING AUTHORITY RELATING 

20 TO INCOME-BASED REPAYMENT. 

21 (a) IN GENERAL.—Subparagraph (A) of section 

22 6103(l)(13) of the Internal Revenue Code of 1986 is 

23 amended by striking ‘‘who has received an applicable stu24 dent loan and whose loan repayment amounts are based 

25 in whole or in part on the taxpayer’s income’’ and insertmstockstill on DSK4VPTVN1PROD with BILLS

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1 ing ‘‘who is more than 150 days delinquent on an eligible 

2 student loan’’. 

3 (b) RESTRICTION ON REDISCLOSURES.—Subpara4 graph (B) of section 6103(l)(13) of such Code is amend5 ed— 

6 (1) by striking ‘‘Return information’’ and in7 serting the following: 

8 ‘‘(i) IN GENERAL.—Except as other9 wise provided in this subparagraph, return 

10 information’’, 

11 (2) by striking ‘‘income contingent’’ and insert12 ing ‘‘income-based’’, 

13 (3) by inserting ‘‘for purposes of enrolling the 

14 taxpayer in an income-based repayment plan pursu15 ant to section 493C(d) of the Higher Education Act 

16 of 1965 (as in effect on the date of enactment of the 

17 Higher Education Affordability Act)’’ before the pe18 riod at the end, and 

19 (4) by adding at the end the following new 

20 clauses: 

21 ‘‘(ii) REDISCLOSURE OF REPAYMENT

22 AMOUNT TO CERTAIN LOAN SERVICE PRO23 VIDERS.—Upon request from an applicable 

24 loan service provider, the Secretary of 

25 Education may disclose to the taxpayer 

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1 and to the applicable loan service provider 

2 the taxpayer’s repayment amount under an 

3 income-based repayment plan described in 

4 section 493C(b) of the Higher Education 

5 Act of 1965 (as in effect on the date of en6 actment of the Higher Education Afford7 ability Act). 

8 ‘‘(iii) USE IN ADMINISTRATIVE PRO9 CEEDINGS.—The information disclosed 

10 pursuant to this paragraph may be open to 

11 inspection or disclosure to officers and em12 ployees of the Department of Education 

13 who are personally and directly engaged in 

14 any administrative proceeding arising out 

15 of the determination of the income-based 

16 repayment amount and to the taxpayer 

17 and the taxpayer’s representative.’’. 

18 (c) DEFINITIONS.—Subparagraph (C) of section 

19 6103(l)(13) of such Code is amended to read as follows: 

20 ‘‘(C) DEFINITIONS.—For purposes of this 

21 paragraph— 

22 ‘‘(i) ELIGIBLE STUDENT LOAN.—The 

23 term ‘eligible student loan’ has the mean24 ing given to the term ‘eligible loan’ under 

25 section 493C(a) of the Higher Education 

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1 Act of 1965 (as in effect on the date of en2 actment of the Higher Education Afford3 ability). 

4 ‘‘(ii) APPLICABLE LOAN SERVICE PRO5 VIDER.—For purposes of this subpara6 graph, the term ‘applicable loan service 

7 provider’ means— 

8 ‘‘(I) any entity with a contract to 

9 service loans under section 456 of the 

10 Higher Education Act of 1965, 

11 ‘‘(II) any entity that is a lender 

12 of loans made, insured, or guaranteed 

13 under part B of such Act, 

14 ‘‘(III) any entity that provides 

15 student loan servicing for a lender de16 scribed in subclause (II).’’. 

17 (d) TERMINATION OF AUTHORITY.—Subparagraph 

18 (D) of section 6103(l)(13) of the Internal Revenue Code 

19 of 1986 is amended by striking ‘‘December 31, 2007’’ and 

20 inserting ‘‘December 31, 2019’’. 

21 (e) CONFORMING AMENDMENT.—The heading for 

22 paragraph (13) of section 6103(l) of such Code is amend23 ed by striking ‘‘INCOME CONTINGENT REPAYMENT OF

24 STUDENT LOANS’’ and inserting ‘‘AUTO-ENROLLMENT OF

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1 DELINQUENT STUDENT LOAN BORROWERS IN INCOME2 BASED REPAYMENT PLANS’’. 

3 (f) APPLICATION OF CERTAIN RULES TO LOAN

4 SERVICERS.— 

5 (1) IN GENERAL.—Paragraph (3) of section 

6 6103(a) of the Internal Revenue Code of 1986 is 

7 amended by inserting ‘‘(13),’’ after ‘‘(12),’’. 

8 (2) PENALTY FOR UNAUTHORIZED INSPEC9 TION.—Subparagraph (B) of section 7213A of such 

10 Code is amended by striking ‘‘subsection (l)(18) or 

11 (n) of’’ and inserting ‘‘paragraph (13) or (18) of 

12 subsection (l) of, or subsection (n) of,’’. 

13 (3) RECORDS OF INSPECTION AND DISCLO14 SURE.—Subparagraph (A) of section 6103(p)(3) of 

15 such Code is amended— 

16 (A) by striking ‘‘(13),’’ and 

17 (B) by inserting after the second sentence 

18 the following new sentence: ‘‘The Secretary of 

19 Education shall supply the Secretary with such 

20 information as is necessary to carry out this 

21 paragraph as it relates to section 6103(l)(13).’’. 

22 (4) SAFEGUARDS.—Paragraph (4) of section 

23 6103(p) of such Code is amended by inserting 

24 ‘‘(13),’’ after ‘‘(l)(10),’’ each place it appears. 

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1 (g) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to requests made by the Secretary 

3 of Education after the date of the enactment of this Act. 

4 PART C—TITLE 11 OF THE UNITED STATES CODE 

5 SEC. 1031. PRIVATE LOAN DISCHARGE IN BANKRUPTCY. 

6 Section 523(a)(8) of title 11, United States Code, is 

7 amended by striking ‘‘dependents, for’’ and all that follows 

8 through the end of subparagraph (B) and inserting ‘‘de9 pendents, for an educational benefit overpayment or loan 

10 made, insured, or guaranteed by a governmental unit or 

11 made under any program funded in whole or in part by 

12 a governmental unit or an obligation to repay funds re13 ceived from a governmental unit as an educational benefit, 

14 scholarship, or stipend;’’. 

15 PART D—SERVICEMEMBERS CIVIL RELIEF ACT 

16 SEC. 1041. MODIFICATION OF LIMITATION ON RATE OF IN17 TEREST ON STUDENT LOANS DURING AND 

18 IMMEDIATELY AFTER PERIOD OF MILITARY 

19 SERVICE. 

20 (a) EXTENSION OF PERIOD OF APPLICABILITY OF

21 LIMITATION ON RATE OF INTEREST ON STUDENT LOANS

22 INCURRED BEFORE SERVICE.—Section 207(a)(1) of the 

23 Servicemembers Civil Relief Act (50 U.S.C. App. 

24 527(a)(1)) is amended— 

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1 (1) in subparagraph (A), by inserting ‘‘or a stu2 dent loan’’ after ‘‘nature of a mortgage’’; and 

3 (2) in the paragraph heading, by inserting ‘‘ON

4 DEBT INCURRED BEFORE SERVICE’’ after ‘‘LIMITA5 TION TO 6 PERCENT’’. 

6 (b) DEBT ENTERED INTO DURING MILITARY SERV7 ICE TO CONSOLIDATE OR REFINANCE STUDENT LOANS

8 INCURRED BEFORE MILITARY SERVICE.—Subsection (a) 

9 of section 207 of such Act (50 U.S.C. App. 527) is amend10 ed— 

11 (1) by redesignating paragraphs (2) and (3) as 

12 paragraphs (3) and (4), respectively; 

13 (2) by inserting after paragraph (1) the fol14 lowing: 

15 ‘‘(2) LIMITATION TO 6 PERCENT ON DEBT IN16 CURRED DURING SERVICE TO CONSOLIDATE OR RE17 FINANCE STUDENT LOANS INCURRED BEFORE SERV18 ICE.—An obligation or liability bearing interest at a 

19 rate in excess of 6 percent per year that is incurred 

20 by a servicemember, or the servicemember and the 

21 servicemember’s spouse jointly, during military serv22 ice to consolidate or refinance one or more student 

23 loans incurred by the servicemember before such 

24 military service shall not bear an interest at a rate 

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1 in excess of 6 percent during the period of military 

2 service and one year thereafter.’’; 

3 (3) in paragraph (3), as redesignated by para4 graph (1) of this subsection, by inserting ‘‘or (2)’’ 

5 after ‘‘paragraph (1)’’; and 

6 (4) in paragraph (4), as so redesignated, by 

7 striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

8 (3)’’. 

9 (c) IMPLEMENTATION OF LIMITATION.—Subsection 

10 (b) of such section is amended— 

11 (1) in paragraph (1), by striking ‘‘the interest 

12 rate limitation in subsection (a)’’ and inserting ‘‘an 

13 interest rate limitation in paragraph (1) or (2) of 

14 subsection (a)’’; and 

15 (2) in paragraph (2)— 

16 (A) in the paragraph heading, by striking 

17 ‘‘AS OF DATE OF ORDER TO ACTIVE DUTY’’; and 

18 (B) by inserting before the period at the 

19 end the following: ‘‘in the case of an obligation 

20 or liability covered by subsection (a)(1), or as of 

21 the date the servicemember (or servicemember 

22 and spouse jointly) incurs the obligation or li23 ability concerned under subsection (a)(2)’’. 

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1 (d) STUDENT LOAN DEFINED.—Subsection (d) of 

2 such section is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(3) STUDENT LOAN.—The term ‘student loan’ 

5 means the following: 

6 ‘‘(A) A Federal student loan made, in7 sured, or guaranteed under title IV of the 

8 Higher Education Act of 1965 (20 U.S.C. 1070 

9 et seq.). 

10 ‘‘(B) A student loan made pursuant to title 

11 VII or VIII of the Public Health Service Act 

12 (42 U.S.C. 292 et seq. and 296 et seq.). 

13 ‘‘(C) A private student loan as that term 

14 is defined in section 140(a) of the Truth in 

15 Lending Act (15 U.S.C. 1650(a)).’’. 

16 PART E—UNITED STATES INSTITUTE OF PEACE 

17 ACT 

18 SEC. 1051. UNITED STATES INSTITUTE OF PEACE ACT. 

19 Section 1710(a)(1) of the United States Institute of 

20 Peace Act (22 U.S.C. 4609(a)(1)) is amended by striking 

21 ‘‘to be appropriated’’ and all that follows through the pe22 riod at the end and inserting ‘‘to be appropriated such 

23 sums as may be necessary for fiscal years 2015 through 

24 2019’’. 

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1 TITLE XI—REPORTS, STUDIES, 

2 AND MISCELLANEOUS PROVI3 SIONS 

4 SEC. 1101. CONSUMER PROTECTIONS FOR STUDENTS. 

5 (a) IN GENERAL.— 

6 (1) DEFINITIONS.—In this section: 

7 (A) FEDERAL FINANCIAL ASSISTANCE

8 PROGRAM.—The term ‘‘Federal financial assist9 ance program’’ means a program authorized 

10 and funded by the Federal Government under 

11 any of the following provisions of law: 

12 (i) Title IV of the Higher Education 

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

14 (ii) Title I of the Workforce Invest15 ment Act of 1998 (29 U.S.C. 2801 et seq.) 

16 or title I of the Workforce Innovation and 

17 Opportunity Act (29 U.S.C. 3111 et seq.). 

18 (iii) The Adult Education and Family 

19 Literacy Act (29 U.S.C. 3101 note et 

20 seq.). 

21 (iv) Chapter 30, 31, 32, 33, 34, or 35 

22 of title 38, United States Code. 

23 (v) Chapter 101, 105, 106A, 1606, 

24 1607, or 1608 of title 10, United States 

25 Code. 

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1 (vi) Section 1784a, 2005, or 2007 of 

2 title 10, United States Code. 

3 (B) INSTITUTION OF HIGHER EDU4 CATION.—The term ‘‘institution of higher edu5 cation’’— 

6 (i) with respect to a program author7 ized under subparagraph (A)(i), has the 

8 meaning given the term in section 102 of 

9 the Higher Education Act of 1965 (20 

10 U.S.C. 1002); 

11 (ii) with respect to a program author12 ized under title I of the Workforce Invest13 ment Act of 1998 (29 U.S.C. 2801 et 

14 seq.), has the meaning given the term 

15 ‘‘postsecondary educational institution’’ as 

16 defined in section 101 of the Workforce In17 vestment Act of 1998 (29 U.S.C. 2801), 

18 and with respect to a program authorized 

19 under title I of the Workforce Innovation 

20 and Opportunity Act (29 U.S.C. 3111 et 

21 seq.), has the meaning given the term ‘‘in22 stitution of higher education’’ as defined in 

23 section 3 of the Workforce Innovation and 

24 Opportunity Act (29 U.S.C. 3102); 

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1 (iii) with respect to a program author2 ized under subparagraph (A)(iii), has the 

3 meaning given the term ‘‘postsecondary 

4 educational institution’’ as defined in sec5 tion 203 of the Adult Education and Fam6 ily Literacy Act (29 U.S.C. 3272); 

7 (iv) with respect to a program author8 ized under subparagraph (A)(iv), has the 

9 meaning given the term ‘‘educational insti10 tution’’ under section 3452 of title 38, 

11 United States Code; 

12 (v) with respect to a program author13 ized under subparagraph (A)(v), means an 

14 educational institution that awards a de15 gree or certificate and is located in any 

16 State; and 

17 (vi) with respect to a program author18 ized under subparagraph (A)(vi), means an 

19 educational institution that awards a de20 gree or certificate and is located in any 

21 State. 

22 (C) STATE.— 

23 (i) STATE.—The term ‘‘State’’ in24 cludes, in addition to the several States of 

25 the United States, the Commonwealth of 

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1 Puerto Rico, the District of Columbia, 

2 Guam, American Samoa, the United States 

3 Virgin Islands, the Commonwealth of the 

4 Northern Mariana Islands, and the freely 

5 associated States. 

6 (ii) FREELY ASSOCIATED STATES.— 

7 The term ‘‘freely associated States’’ means 

8 the Republic of the Marshall Islands, the 

9 Federated States of Micronesia, and the 

10 Republic of Palau. 

11 (2) CONSUMER PROTECTIONS.—Notwith12 standing any other provision of law, an institution of 

13 higher education is not eligible to participate in a 

14 Federal financial assistance program with respect to 

15 any program of postsecondary education or training, 

16 including a degree or certificate program, that is de17 signed to prepare students for entry into a recog18 nized occupation or profession that requires licensing 

19 or other established requirements as a condition for 

20 entry into such occupation or profession, unless, by 

21 not later than 1 year after the date of enactment of 

22 this Act— 

23 (A) the successful completion of the pro24 gram fully qualifies a student, in the Metropoli25 tan Statistical Area in which the student remstockstill on DSK4VPTVN1PROD with BILLS

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1 sides (and in any State in which the institution 

2 indicates, through advertising or marketing ac3 tivities or direct contact with potential students, 

4 that a student will be prepared to work in the 

5 occupation or profession after successfully com6 pleting the program), to— 

7 (i) take any examination required for 

8 entry into the recognized occupation or 

9 profession in the Metropolitan Statistical 

10 Area and State in which the student re11 sides, including satisfying all State or pro12 fessionally mandated programmatic and 

13 specialized accreditation requirements, if 

14 any; and 

15 (ii) be certified or licensed or meet 

16 any other academically related conditions 

17 that are required for entry into the recog18 nized occupation or profession in the State; 

19 and 

20 (B) the institution offering the program 

21 provides timely placement for all of the aca22 demically related pre-licensure requirements for 

23 entry into the recognized occupation or profes24 sion, such as clinical placements, internships, or 

25 apprenticeships. 

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1 (3) REGULATIONS ON PROGRAMS IN

2 PREACCREDITATION STATUS.—The Secretary of 

3 Education shall promulgate regulations on require4 ments of an institution of higher education with re5 spect to any program of the institution that is in a 

6 preaccredited status, including limitations on, or re7 quirements of, advertisement of the program to stu8 dents. Such regulations shall be consistent with the 

9 provisions of paragraph (2). 

10 (4) LOAN DISCHARGE.—The Secretary of Edu11 cation shall promulgate regulations that condition 

12 eligibility for an institution of higher education to 

13 participate in any Federal financial assistance pro14 gram on the institution signing with each student 

15 enrolled in any program of the institution that is in 

16 a preaccredited status, a loan discharge agreement. 

17 (b) EFFECTIVE DATE.—This section shall take effect 

18 on the date that is 1 year after the date of enactment 

19 of this Act. 

20 SEC. 1102. LONGITUDINAL STUDY OF THE EFFECTIVENESS 

21 OF STUDENT LOAN COUNSELING. 

22 (a) IN GENERAL.—Not later than 1 year after the 

23 date of enactment of this Act, the Secretary of Education 

24 and the Director of the Bureau of Consumer Financial 

25 Protection, acting through the Director of the Institute 

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1 of Education Sciences, shall begin conducting a rigorous 

2 longitudinal study of the impact and effectiveness of stu3 dent loan counseling, as provided in accordance with sub4 sections (b), (l), and (n) of section 485 of the Higher Edu5 cation Act of 1965 (20 U.S.C. 1092) and through such 

6 other means of providing student loan counseling services 

7 as the Secretary may determine. 

8 (b) CONTENTS.—The longitudinal study shall include 

9 borrower information, in the aggregate and disaggregated 

10 by race, ethnicity, gender, income, and status as an indi11 vidual with a disability, about— 

12 (1) student persistence; 

13 (2) degree attainment; 

14 (3) program completion; 

15 (4) successful entry into student loan repay16 ment; 

17 (5) cumulative borrowing levels; and 

18 (6) such other factors as the Secretary may de19 termine. 

20 (c) INTERIM REPORTS.—Not later than 18 months 

21 after the commencement of the study described under this 

22 section, and annually thereafter, the Secretary shall evalu23 ate the progress of the study and report any short-term 

24 findings to the appropriate committees of Congress. 

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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 such sums as may be necessary for fiscal year 2015 and 

4 each of the 4 succeeding fiscal years. 

5 SEC. 1103. RECOMMENDATIONS FOR STUDENT LOAN COUN6 SELING. 

7 The Secretary of the Treasury, acting through the 

8 President’s Advisory Council on Financial Capability and 

9 the Financial Literacy and Education Commission, shall 

10 prepare and submit to Congress and to the Secretary of 

11 Education a report containing recommendations about in12 formation, including methods and strategies for conveying 

13 such information to borrowers in order to ensure com14 prehension, that should be included in financial literacy 

15 counseling for first-time student loan borrowers. 

16 SEC. 1104. WORKING GROUP ON IMPROVEMENT OF RE17 SOURCES AVAILABLE TO MEMBERS OF THE 

18 ARMED FORCES AND THEIR SPOUSES IN 

19 USING TUITION ASSISTANCE PROGRAMS OF 

20 THE DEPARTMENT OF DEFENSE. 

21 (a) WORKING GROUP REQUIRED.—The Secretary of 

22 Education, the Secretary of Defense, the Secretary of Vet23 erans Affairs, and the Director of the Bureau of Consumer 

24 Financial Protection shall jointly, and in consultation with 

25 the heads of such other departments and agencies of the 

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1 Federal Government as such officials consider appro2 priate, establish and maintain a working group to assess 

3 and improve the resources available to education service 

4 officers and other personnel of the Federal Government 

5 who provide assistance to members of the Armed Forces 

6 and their spouses in using or seeking to use the tuition 

7 assistance programs of the Department of Defense. 

8 (b) RESOURCES.—In improving resources as de9 scribed in subsection (a), the working group shall provide 

10 for the inclusion of the following in such resources: 

11 (1) Information on the benefits and protections 

12 for members of the Armed Forces and their depend13 ents provided in this Act and the amendments made 

14 by this Act. 

15 (2) Consumer information, resources, and tools 

16 created and maintained by the working group pursu17 ant to this section. 

18 (3) Information on the availability of consumer 

19 protection measures, including the complaint system 

20 established pursuant to Executive Order 13607 (77 

21 Fed. Reg. 25861; relating to establishing principles 

22 of excellence for educational institutions serving 

23 servicemembers, veterans, spouses, and other family 

24 members). 

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1 (4) Such other information or resources as the 

2 working group considers appropriate. 

3 SEC. 1105. STUDY ON PUBLIC SERVICE LOAN FORGIVE4 NESS. 

5 (a) IN GENERAL.—By not later than 1 year after the 

6 date of enactment of this Act, the Secretary shall, in con7 sultation with the Director of the Bureau of Consumer 

8 Financial Protection, prepare and submit to the Com9 mittee on Health, Education, Labor, and Pensions of the 

10 Senate and the Committee on Education and the Work11 force of the House of Representatives a report evaluating 

12 the effectiveness of the public service loan forgiveness pro13 gram under section 455(m) of the Higher Education Act 

14 of 1965 (20 U.S.C. 1087e(m)). 

15 (b) CONTENTS.—The report required under sub16 section (a) shall include— 

17 (1) an analysis of total borrowing for prospec18 tive recipients of loan forgiveness under section 

19 455(m) of the Higher Education Act of 1965 (20 

20 U.S.C. 1087e(m)), including participants that have 

21 completed the certification form developed by the 

22 Secretary pursuant to such section; 

23 (2) an analysis of the public service entities em24 ploying prospective recipients of loan forgiveness 

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1 zations identified on the certification forms devel2 oped by the Secretary pursuant to such section; 

3 (3) an analysis of the impact of the availability 

4 of public service loan forgiveness under such section 

5 on the utilization of other benefits established to en6 courage or reward public service employment under 

7 title IV of the Higher Education Act of 1965 (20 

8 U.S.C. 1070), including the programs established 

9 under sections 428J, 460, and 465 of such Act (20 

10 U.S.C. 1078–10, 1087j, and 1087ee); 

11 (4) an analysis of the impact public service loan 

12 forgiveness under section 455(m) of such Act has 

13 had on the existence of loan repayment assistance 

14 programs offered by institutions of higher education 

15 for students employed in public service; 

16 (5) an evaluation of the impact of the public 

17 service loan forgiveness program under such section 

18 on total tuition and fees at institutions where the 

19 Secretary finds a reasonable number of borrowers 

20 are both— 

21 (A) prospective recipients of loan forgive22 ness under section 455(m), as described in 

23 paragraph (1); and 

24 (B) recipients of an award under a loan re25 payment assistance program made by an instimstockstill on DSK4VPTVN1PROD with BILLS

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1 tution of higher education described in para2 graph (4); 

3 (6) an evaluation of the impact of borrowers de4 scribed in paragraph (5) on total program costs for 

5 the public service loan forgiveness program under 

6 section 455(m); and 

7 (7) an evaluation of the cost and feasibility of 

8 altering the public service loan forgiveness program 

9 carried out under section 455(m) of the Higher 

10 Education Act of 1965 (20 U.S.C. 1087e(m)) in 

11 order to allow a proportionate percentage of loan 

12 cancellation for each year of public service that the 

13 individual completes, and a comparison of the esti14 mated costs of such a prorated program with the es15 timated costs of the public service loan forgiveness 

16 program carried out under such section 455(m), as 

17 in effect on the date of the study. 

18 SEC. 1106. LONGITUDINAL STUDY OF THE CAUSES OF STU19 DENT LOAN DEFAULT. 

20 (a) IN GENERAL.—Not later than 1 year after the 

21 date of enactment of this Act, the Secretary of Education 

22 and the Director of the Bureau of Consumer Financial 

23 Protection, acting through the Director of the Institute 

24 of Education Sciences, shall begin conducting a rigorous 

25 longitudinal study of the causes of default on loans made, 

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1 insured, or guaranteed under part B, D, or E of title IV 

2 of the Higher Education Act of 1965 (20 U.S.C. 1071 

3 et seq., 1087a et seq., 1087aa et seq.). 

4 (b) CONTENTS.—The longitudinal study shall in5 clude— 

6 (1) information about borrowers of loans de7 scribed in subsection (a), disaggregated by age, race, 

8 ethnicity, gender, status as an individual with a dis9 ability, and status as a low-income individual, re10 garding possible risk factors for default, including— 

11 (A) the type of institution attended by the 

12 borrower; 

13 (B) the degree or program in which the 

14 borrower was enrolled; 

15 (C) educational attainment level; 

16 (D) personal and financial circumstances; 

17 (E) employment status; 

18 (F) types of loans held by the borrower; 

19 (G) the interest rate on outstanding loans 

20 held by the borrower; 

21 (H) the repayment plan selected by the 

22 borrower; 

23 (I) loan servicing difficulties; 

24 (J) outstanding debt level; and 

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1 (K) such other factors as the Secretary 

2 and Director of the Bureau of Consumer Fi3 nancial Protection may determine; 

4 (2) consideration of the relevance of the pos5 sible risk factors; and 

6 (3) policy recommendations designed to de7 crease the likelihood of student loan default. 

8 (c) REPORTS.— 

9 (1) INTERIM REPORTS.—Not later than 18 

10 months after the commencement of the study de11 scribed under this section, and annually thereafter, 

12 the Secretary shall evaluate the progress of the 

13 study and report any short-term findings to the ap14 propriate committees of Congress. 

15 (2) FINAL REPORT.—Upon completion of the 

16 study described under this section, the Secretary 

17 shall prepare and submit a final report regarding 

18 the findings of the study to the appropriate commit19 tees of Congress. 

20 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to carry out this section 

22 such sums as may be necessary for fiscal year 2015 and 

23 each of the 4 succeeding fiscal years. 

24 SEC. 1107. INSTITUTIONAL RISK-SHARING COMMISSION. 

25 (a) ESTABLISHMENT OF COMMISSION.— 

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1 (1) IN GENERAL.—The Secretary of Education 

2 shall establish an Institutional Risk-Sharing Com3 mission (referred to in this section as the ‘‘Commis4 sion’’) whose members shall be selected by the Sec5 retary and comprised of the following relevant stake6 holders: 

7 (A) 2 representatives of national or re8 gional student advocacy organizations with a 

9 track record of engagement and expertise on 

10 issues related to college costs, consumer protec11 tion, and institutional accountability and an al12 ternate member. 

13 (B) 1 student representative who is attend14 ing an institution of higher education on the 

15 date of the selection and an alternate member. 

16 (C) 1 member of the Bureau of Consumer 

17 Financial Protection with demonstrated knowl18 edge of student loan borrowing and an alternate 

19 member. 

20 (D) 2 administrative officers from different 

21 types of institutions of higher education and an 

22 alternate member. 

23 (E) 1 higher education researcher and an 

24 alternate member. 

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1 (F) 1 State postsecondary education data 

2 system director and an alternate member. 

3 (G) 1 representative from the National 

4 Center for Education Statistics and an alter5 nate member. 

6 (H) 1 representative from the Government 

7 Accountability Office and an alternate member. 

8 (I) 1 representative from the Department 

9 of the Treasury and an alternate member. 

10 (2) FUNCTIONS.—Each member selected under 

11 paragraph (1) shall participate for the purpose of 

12 determining agreement by majority vote on the Com13 mission on the report and its contents described in 

14 paragraph (4). Each alternate member shall partici15 pate for the purpose of determining the majority 

16 vote in the absence of the member. Either the mem17 ber or an alternate member may speak during the 

18 negotiations. In the event that the Commission is 

19 unable to form agreement on the contents of the re20 port by majority vote, the contents of the report 

21 shall be determined by a plurality vote. 

22 (b) STUDY.— 

23 (1) IN GENERAL.—Not later than 270 days 

24 after the date that all members of the Commission 

25 have been selected under subsection (a), the Commstockstill on DSK4VPTVN1PROD with BILLS

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1 mission shall complete a study and develop rec2 ommendations for implementation of a new risk3 sharing system for institutions of higher education 

4 that participate in the Federal Direct Loan Program 

5 under part D of title IV of the Higher Education 

6 Act of 1965 (20 U.S.C. 1087a et seq.) through 

7 which institutions would be held financially account8 able for poor student outcomes. 

9 (2) CONTENT OF STUDY.—In conducting the 

10 study required under paragraph (1), the Commission 

11 shall, at a minimum, consider the following issues: 

12 (A) Identifying an annual measure or set 

13 of measures for the risk-sharing system that 

14 would provide the most accurate assessment of 

15 an institution’s level of success or failure at 

16 providing their students with basic educational 

17 outcomes, such as degree completion, ability to 

18 repay loans made, insured, or guaranteed under 

19 title IV of the Higher Education Act of 1965 

20 (20 U.S.C. 1070 et seq.), post-graduation em21 ployment, and post-graduation earnings. Such 

22 possible measures may include cohort default 

23 rates, loan repayment rates, graduation rates, 

24 graduate earnings, and other measure that the 

25 Commission considers an accurate reflection of 

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1 student outcomes, regardless of the feasibility 

2 of access to the data required to implement col3 lection of such measures. 

4 (B) What specific metrics would require 

5 the lowest performing institutions to make an6 nual payments into the risk-sharing system, 

7 and what metrics would exempt institutions 

8 from making an annual risk-sharing payment 

9 based on performance measures that exceeded a 

10 minimum level (which level would be identified 

11 by the Commission). 

12 (C) How the payments for each institution 

13 should be calculated, including whether the use 

14 of a percentage of Federal Direct Loans dis15 bursed the year prior to identification, the per16 centage of loans in default, or any other cal17 culation should be used. 

18 (D) Whether a sliding scale of payments 

19 should be required of institutions based on their 

20 performance on the identified measures. 

21 (E) Any legislative safeguards or mecha22 nisms to ensure that an institution required to 

23 participate in the risk-sharing system would not 

24 pass any prospective costs directly or indirectly 

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1 onto students, or limit access to low-income stu2 dents. 

3 (F) How an institution’s level of access to 

4 low-income students (such as measured by the 

5 percentage of students enrolled at the institu6 tion who receive Federal Pell Grants under sub7 part 1 of part A of title IV of the Higher Edu8 cation Act of 1965 (20 U.S.C. 1070a et seq.)) 

9 and affordability (as measured by average net 

10 price) should be considered in the risk-sharing 

11 system. 

12 (G) Specifying a means for the risk-shar13 ing system payments to go primarily towards 

14 students in default, additional aid to low-income 

15 students, or any other form of aid to student 

16 borrowers most in need, including after degree 

17 completion. 

18 (H) Whether any extraordinary consider19 ation exists that warrants allowing a waiver 

20 process through which a very limited number of 

21 institutions would be eligible to apply for a 

22 waiver from a risk-sharing payment on a yearly 

23 basis, and under what conditions. 

24 (3) OUTSIDE RECOMMENDATIONS.—As part of 

25 the study required under paragraph (1), the Commstockstill on DSK4VPTVN1PROD with BILLS

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1 mission shall develop a public process for soliciting 

2 recommendations for the risk-sharing system and 

3 shall consider these recommendations as part of the 

4 study. The Commission shall factor in any financial 

5 or other interests of any submitting party in weigh6 ing and considering such recommendations. 

7 (4) REPORT.— 

8 (A) CONTENT.—Not later than 90 days 

9 after completing the study required under para10 graph (1), the Commission shall issue, by ma11 jority vote, or if unable to achieve a majority 

12 vote, then a plurality vote, a report regarding 

13 its recommendations for a risk-sharing system. 

14 The report shall include the following: 

15 (i) A description of the Commission’s 

16 findings as to the issues described in para17 graph (2). 

18 (ii) A data analysis using the Com19 mission’s recommended metrics that dem20 onstrates how each institution of higher 

21 education that participates in the Federal 

22 Direct Loan Program under part D of title 

23 IV of the Higher Education Act of 1965 

24 (20 U.S.C. 1087a et seq.) as of the period 

25 of the Commission’s study would fare 

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1 under the proposed risk-sharing system, 

2 including projections for the amounts of 

3 payments the lowest performing institu4 tions would have to pay. 

5 (iii) An evaluation of the feasibility 

6 and unintended consequences of imple7 menting the recommended risk-sharing 

8 system, including any legislative or regu9 latory action needed to implement such a 

10 system. 

11 (B) AVAILABILITY.—The report described 

12 in subparagraph (A) shall be— 

13 (i) provided to the Secretary of Edu14 cation, the Committee on Health, Edu15 cation, Labor, and Pensions of the Senate, 

16 and the Committee on Education and the 

17 Workforce of the House of Representa18 tives; and 

19 (ii) made publicly available. 

20 (c) SECURING INFORMATION AND PRIVACY.— 

21 (1) IN GENERAL.—Subject to paragraph (2), 

22 the Commission may secure directly from any Fed23 eral department or agency such information as the 

24 Commission considers necessary to carry out its du25 ties under this section. The Commission may request 

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1 the head of any State or local department or agency 

2 to furnish such information to the Commission. 

3 (2) PRIVACY.—Any Federal department or 

4 agency, State or local department or agency, or in5 stitution of higher education in providing informa6 tion to the Commission under this section shall not 

7 share any personally identifiable information and 

8 shall act in accordance with section 444 of the Gen9 eral Education Provisions Act (20 U.S.C. 1232g, 

10 commonly known as the ‘‘Family Educational Rights 

11 and Privacy Act of 1974’’). 

12 SEC. 1108. GAO REPORT ON EDUCATIONAL ATTAINMENT OF 

13 HOMELESS CHILDREN AND YOUTH AND FOS14 TER CARE CHILDREN AND YOUTH. 

15 (a) DEFINITIONS.—In this section: 

16 (1) FOSTER CARE CHILDREN AND YOUTH.— 

17 The term ‘‘foster care children and youth’’ has the 

18 meaning given the term in section 103 of the Higher 

19 Education Act of 1965. 

20 (2) HOMELESS CHILDREN AND YOUTH.—The 

21 term ‘‘homeless children and youth’’ means children 

22 and youth who lack a fixed, regular, and adequate 

23 nighttime residence and includes— 

24 (A) children and youth who— 

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1 (i) are sharing the housing of other 

2 persons due to loss of housing, economic 

3 hardship, or a similar reason; 

4 (ii) are living in motels, hotels, trailer 

5 parks, or camping grounds due to the lack 

6 of alternative adequate accommodations; 

7 (iii) are living in emergency or transi8 tional shelters; 

9 (iv) are abandoned in hospitals; or 

10 (v) are awaiting foster care placement; 

11 (B) children and youth who have a pri12 mary nighttime residence that is a public or 

13 private place not designed for or ordinarily used 

14 as a regular sleeping accommodation for human 

15 beings; 

16 (C) children and youth who are living in 

17 cars, parks, public spaces, abandoned buildings, 

18 substandard housing, bus or train stations, or 

19 similar settings; and 

20 (D) migratory children (as such term is 

21 defined in section 1309 of the Elementary and 

22 Secondary Education Act of 1965 (20 U.S.C. 

23 6399)) who are living in circumstances de24 scribed in subparagraph (A), (B), or (C). 

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1 (3) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given the term in section 102 of the Higher 

4 Education Act of 1965 (20 U.S.C. 1002). 

5 (b) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this Act, the Comptroller General 

7 of the United States shall prepare and submit to the Com8 mittee on Health, Education, Labor, and Pensions of the 

9 Senate and the Committee on Education and the Work10 force of the House of Representatives a report on the edu11 cational attainment of youth who are or have been home12 less (including youth who are or have been homeless chil13 dren and youth) and foster care children and youth. 

14 (c) CONTENT.—The report described in subsection 

15 (b) shall contain a review and assessment of enrollment 

16 and completion data for both accompanied and unaccom17 panied homeless children and youth and foster care chil18 dren and youth, including the following: 

19 (1) The percentage of such youth attending an 

20 institution of higher education. 

21 (2) The percentage of such youth graduating 

22 from an institution of higher education. 

23 (3) The average length of time taken to obtain 

24 an associate or baccalaureate degree. 

25 (4) The percentage of such youth attending— 

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1 (A) a public institution of higher edu2 cation; 

3 (B) a private institution of higher edu4 cation; 

5 (C) a community college; and 

6 (D) a 4-year institution of higher edu7 cation. 

8 (5) Reasons why such youth choose not to pur9 sue a higher education. 

10 (6) The availability of public and private tuition 

11 assistance specifically for such youth and the aware12 ness among such youth of such tuition assistance. 

13 (7) The availability of other public or private 

14 programs designed to encourage and support enroll15 ment in, and completion of, higher education for 

16 such youth. 

17 (8) Ways in which the Department of Edu18 cation might increase the educational attainment 

19 rates of such youth. 

20 SEC. 1109. AMERICAN DREAM ACCOUNTS. 

21 (a) SHORT TITLE.—This section may be cited as the 

22 ‘‘American Dream Accounts Act’’. 

23 (b) DEFINITIONS.—In this section: 

24 (1) AMERICAN DREAM ACCOUNT.—The term 

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1 line account for low-income students that monitors 

2 higher education readiness and includes a college 

3 savings account. 

4 (2) APPROPRIATE COMMITTEES OF CON5 GRESS.—The term ‘‘appropriate committees of Con6 gress’’ means the Committee on Health, Education, 

7 Labor, and Pensions, the Committee on Appropria8 tions, and the Committee on Finance of the Senate, 

9 and the Committee on Education and the Work10 force, the Committee on Appropriations, and the 

11 Committee on Ways and Means of the House of 

12 Representatives, as well as any other Committee of 

13 the Senate or House of Representatives that the 

14 Secretary determines appropriate. 

15 (3) CHARTER SCHOOL.—The term ‘‘charter 

16 school’’ has the meaning given such term in section 

17 5210 of the Elementary and Secondary Education 

18 Act of 1965 (20 U.S.C. 7221i). 

19 (4) COLLEGE SAVINGS ACCOUNT.—The term 

20 ‘‘college savings account’’ means a savings account 

21 that— 

22 (A) provides some tax-preferred accumula23 tion; 

24 (B) is widely available (such as Qualified 

25 Tuition Programs under section 529 of the Inmstockstill on DSK4VPTVN1PROD with BILLS

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1 ternal Revenue Code of 1986 or Coverdell Edu2 cation Savings Accounts under section 530 of 

3 the Internal Revenue Code of 1986); and 

4 (C) contains funds that may be used only 

5 for the costs associated with attending an insti6 tution of higher education, including— 

7 (i) tuition and fees; 

8 (ii) room and board; 

9 (iii) textbooks; 

10 (iv) supplies and equipment; and 

11 (v) Internet access. 

12 (5) DUAL ENROLLMENT PROGRAM.—The term 

13 ‘‘dual enrollment program’’ means a program of 

14 study— 

15 (A) provided by an institution of higher 

16 education through which a student who has not 

17 graduated from secondary school with a regular 

18 high school diploma is able to earn secondary 

19 school credit and postsecondary credit that is 

20 accepted as credit towards a postsecondary de21 gree or credential at no cost to the participant 

22 or the participant’s family; and 

23 (B) that shall consist of not less than 2 

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1 port and academic services that help a student 

2 persist and complete such courses. 

3 (6) EARLY COLLEGE HIGH SCHOOL.—The term 

4 ‘‘early college high school program’’ means a formal 

5 partnership between at least 1 local educational 

6 agency and at least 1 institution of higher education 

7 that allows students to simultaneously complete, as 

8 part of an organized course of study, requirements 

9 towards earning a regular high school diploma and 

10 earning not less than 12 transferable postsecondary 

11 credits that are accepted as credit towards a postsec12 ondary degree or credential at no cost to the partici13 pant or the participant’s family. 

14 (7) ELIGIBLE ENTITY.—The term ‘‘eligible enti15 ty’’ means— 

16 (A) a State educational agency; 

17 (B) a local educational agency, including a 

18 charter school that operates as its own local 

19 educational agency; 

20 (C) a charter management organization or 

21 charter school authorizer; 

22 (D) an institution of higher education; 

23 (E) a nonprofit organization; 

24 (F) an entity with demonstrated experience 

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1 come students to prepare for, and attend, an in2 stitution of higher education; or 

3 (G) a consortium of 2 or more of the enti4 ties described in subparagraphs (A) through 

5 (F). 

6 (8) INSTITUTION OF HIGHER EDUCATION.—The 

7 term ‘‘institution of higher education’’ has the 

8 meaning given the term in section 101(a) of the 

9 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

10 (9) LOCAL EDUCATIONAL AGENCY.—The term 

11 ‘‘local educational agency’’ has the meaning given 

12 such term in section 9101 of the Elementary and 

13 Secondary Education Act of 1965 (20 U.S.C. 7801). 

14 (10) LOW-INCOME STUDENT.—The term ‘‘low15 income student’’ means a student who is eligible to 

16 receive a free or reduced price lunch under the Rich17 ard B. Russell National School Lunch Act (42 

18 U.S.C. 1751 et seq.). 

19 (11) PARENT.—The term ‘‘parent’’ has the 

20 meaning given such term in section 9101 of the Ele21 mentary and Secondary Education Act of 1965 (20 

22 U.S.C. 7801). 

23 (12) SECRETARY.—The term ‘‘Secretary’’ has 

24 the meaning given such term in section 9101 of the 

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1 Elementary and Secondary Education Act of 1965 

2 (20 U.S.C. 7801). 

3 (13) STATE EDUCATIONAL AGENCY.—The term 

4 ‘‘State educational agency’’ has the meaning given 

5 such term in section 9101 of the Elementary and 

6 Secondary Education Act of 1965 (20 U.S.C. 7801). 

7 (c) GRANT PROGRAM.— 

8 (1) PROGRAM AUTHORIZED.—The Secretary is 

9 authorized to award grants, on a competitive basis, 

10 to eligible entities to enable such eligible entities to 

11 establish and administer American Dream Accounts 

12 for a group of low-income students. 

13 (2) RESERVATION.—From the amounts appro14 priated each fiscal year to carry out this section, the 

15 Secretary shall reserve not more than 5 percent of 

16 such amount to carry out the evaluation activities 

17 described in subsection (f)(1). 

18 (3) DURATION.—A grant awarded under this 

19 section shall be for a period of not more than 3 

20 years. The Secretary may extend such grant for an 

21 additional 2-year period if the Secretary determines 

22 that the eligible entity has demonstrated significant 

23 progress, based on the factors described in sub24 section (d)(2)(K). 

25 (d) APPLICATIONS; PRIORITY.— 

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1 (1) IN GENERAL.—Each eligible entity desiring 

2 a grant under this section shall submit an applica3 tion to the Secretary at such time, in such manner, 

4 and containing such information as the Secretary 

5 may require. 

6 (2) CONTENTS.—At a minimum, the applica7 tion described in paragraph (1) shall include the fol8 lowing: 

9 (A) A description of the characteristics of 

10 a group of not less than 30 low-income public 

11 school students who— 

12 (i) are, at the time of the application, 

13 attending a grade not higher than grade 9; 

14 and 

15 (ii) will, under the grant, receive an 

16 American Dream Account. 

17 (B) A description of how the eligible entity 

18 will engage, and provide support (such as tutor19 ing and mentoring for students, and training 

20 for teachers and other stakeholders) either on21 line or in person, to— 

22 (i) the students in the group described 

23 in subparagraph (A); 

24 (ii) the family members and teachers 

25 of such students; and 

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1 (iii) other stakeholders such as school 

2 administrators and school counselors. 

3 (C) An identification of partners who will 

4 assist the eligible entity in establishing and sus5 taining American Dream Accounts. 

6 (D) A description of what experience the 

7 eligible entity or the partners of the eligible en8 tity have in managing college savings accounts, 

9 preparing low-income students for postsec10 ondary education, managing online systems, 

11 and teaching financial literacy. 

12 (E) A demonstration that the eligible enti13 ty has sufficient resources to provide an initial 

14 deposit into the college savings account portion 

15 of each American Dream Account. 

16 (F) A description of how the eligible entity 

17 will help increase the value of the college sav18 ings account portion of each American Dream 

19 Account, such as by providing matching funds 

20 or incentives for academic achievement. 

21 (G) A description of how the eligible entity 

22 will notify each participating student in the 

23 group described in subparagraph (A), on a 

24 semiannual basis, of the current balance and 

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1 status of the college savings account portion of 

2 the American Dream Account of the student. 

3 (H) A plan that describes how the eligible 

4 entity will monitor participating students in the 

5 group described in subparagraph (A) to ensure 

6 that the American Dream Account of each stu7 dent will be maintained if a student in such 

8 group changes schools before graduating from 

9 secondary school. 

10 (I) A plan that describes how the Amer11 ican Dream Accounts will be managed for not 

12 less than 1 year after a majority of the students 

13 in the group described in subparagraph (A) 

14 graduate from secondary school. 

15 (J) A description of how the eligible entity 

16 will encourage students in the group described 

17 in subparagraph (A) who fail to graduate from 

18 secondary school to continue their education. 

19 (K) A description of how the eligible entity 

20 will evaluate the grant program, including by 

21 collecting, as applicable, the following data 

22 about the students in the group described in 

23 subparagraph (A) during the grant period, or 

24 until the time of graduation from a secondary 

25 school, whichever comes first, and, if sufficient 

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1 grant funds are available, after the grant pe2 riod: 

3 (i) Attendance rates. 

4 (ii) Progress reports. 

5 (iii) Grades and course selections. 

6 (iv) The student graduation rate, as 

7 defined in section 1111(b)(2)(C)(vi) of the 

8 Elementary and Secondary Education Act 

9 of 1965 (20 U.S.C. 6311(b)(2)(C)(vi)). 

10 (v) Rates of student completion of the 

11 Free Application for Federal Student Aid 

12 described in section 483 of the Higher 

13 Education Act of 1965 (20 U.S.C. 1090). 

14 (vi) Rates of enrollment in an institu15 tion of higher education. 

16 (vii) Rates of completion at an institu17 tion of higher education. 

18 (L) A description of what will happen to 

19 the funds in the college savings account portion 

20 of the American Dream Accounts that are dedi21 cated to participating students described in sub22 paragraph (A) who have not matriculated at an 

23 institution of higher education at the time of 

24 the conclusion of the period of American Dream 

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1 graph (I), including how the eligible entity will 

2 give students this information. 

3 (M) A description of how the eligible entity 

4 will ensure that funds in the college savings ac5 count portion of the American Dream Accounts 

6 will not make families ineligible for public as7 sistance. 

8 (N) A description of how the eligible entity 

9 will ensure that participating students described 

10 in subparagraph (A) will have access to the 

11 Internet. 

12 (3) PRIORITY.—In awarding grants under this 

13 section, the Secretary shall give priority to applica14 tions from eligible entities that— 

15 (A) are described in subsection (b)(7)(G); 

16 (B) serve the largest number of low-income 

17 students; 

18 (C) in the case of an eligible entity de19 scribed in subparagraph (A) or (B) of sub20 section (b)(7), provide opportunities for partici21 pating students described in paragraph (2)(A) 

22 to participate in a dual enrollment program or 

23 early college high school program at no cost to 

24 the student; or 

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1 (D) as of the time of application, have 

2 been awarded a grant under chapter 2 of sub3 part 2 of part A of title IV of the Higher Edu4 cation Opportunity Act (20 U.S.C. 1070a–21 et 

5 seq.) (commonly referred to as the ‘‘GEAR UP 

6 program’’). 

7 (e) AUTHORIZED ACTIVITIES.— 

8 (1) IN GENERAL.—An eligible entity that re9 ceives a grant under this section shall use such 

10 grant funds to establish an American Dream Ac11 count for each participating student described in 

12 subsection (d)(2)(A), that will be used to— 

13 (A) open a college savings account for such 

14 student; 

15 (B) monitor the progress of such student 

16 online, which— 

17 (i) shall include monitoring student 

18 data relating to— 

19 (I) grades and course selections; 

20 (II) progress reports; and 

21 (III) attendance and disciplinary 

22 records; and 

23 (ii) may also include monitoring stu24 dent data relating to a broad range of in25 formation, provided by teachers and family 

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1 members, related to postsecondary edu2 cation readiness, access, and completion; 

3 (C) provide opportunities for such stu4 dents, either online or in person, to learn about 

5 financial literacy, including by assisting such 

6 students in financial planning for enrollment in 

7 an institution of higher education; and 

8 (D) provide opportunities for such stu9 dents, either online or in person, to identify 

10 skills or interests, including career interests. 

11 (2) ACCESS TO AMERICAN DREAM ACCOUNT.— 

12 (A) IN GENERAL.—Subject to subpara13 graphs (C) and (D), and in accordance with ap14 plicable Federal laws and regulations relating to 

15 privacy of information and the privacy of chil16 dren, an eligible entity that receives a grant 

17 under this section shall allow vested stake18 holders, as described in subparagraph (B), to 

19 have secure access, through an Internet website, 

20 to each American Dream Account. 

21 (B) VESTED STAKEHOLDERS.—The vested 

22 stakeholders that an eligible entity shall permit 

23 to access an American Dream Account are indi24 viduals (such as the student’s teachers, school 

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1 viduals) that are designated, in accordance with 

2 section 444 of the General Education Provi3 sions Act (20 U.S.C. 1232g, commonly known 

4 as the ‘‘Family Educational Rights and Privacy 

5 Act of 1974’’), by the parent of a participating 

6 student in whose name such American Dream 

7 Account is held, as having permission to access 

8 the account. A student’s parent may withdraw 

9 such designation from an individual at any 

10 time. 

11 (C) EXCEPTION FOR COLLEGE SAVINGS

12 ACCOUNT.—An eligible entity that receives a 

13 grant under this section shall not be required to 

14 give vested stakeholders, as described in sub15 paragraph (B), access to the college savings ac16 count portion of a student’s American Dream 

17 Account. 

18 (D) ADULT STUDENTS.—Notwithstanding 

19 subparagraphs (A), (B), and (C), if a partici20 pating student is age 18 or older, an eligible en21 tity that receives a grant under this section 

22 shall not provide access to such participating 

23 student’s American Dream Account without the 

24 student’s consent, in accordance with section 

25 444 of the General Education Provisions Act 

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1 (20 U.S.C. 1232g, commonly known as the 

2 ‘‘Family Educational Rights and Privacy Act of 

3 1974’’). 

4 (E) INPUT OF STUDENT INFORMATION.— 

5 Student data collected pursuant to paragraph 

6 (1)(B)(i) shall be entered into an American 

7 Dream Account only by a school administrator 

8 or the designee of such administrator. 

9 (3) PROHIBITION ON USE OF STUDENT INFOR10 MATION.—An eligible entity that receives a grant 

11 under this section shall not use any student-level in12 formation or data for the purpose of soliciting, ad13 vertising, or marketing any financial or non-financial 

14 consumer product or service that is offered by such 

15 eligible entity, or on behalf of any other person. 

16 (4) PROHIBITION ON THE USE OF GRANT

17 FUNDS.—An eligible entity shall not use grant funds 

18 provided under this section to provide the initial de19 posit into a college savings account portion of a stu20 dent’s American Dream Account. 

21 (f) REPORTS AND EVALUATIONS.— 

22 (1) IN GENERAL.—Not later than 1 year after 

23 the Secretary has disbursed grants under this sec24 tion, and annually thereafter until each grant dis25 bursed under subsection (c) has ended, the Secretary 

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1 shall prepare and submit a report to the appropriate 

2 committees of Congress, which shall include an eval3 uation of the effectiveness of the grant program es4 tablished under this section. 

5 (2) CONTENTS.—The report described in para6 graph (1) shall— 

7 (A) list the grants that have been awarded 

8 under subsection (c)(1); 

9 (B) include the number of students who 

10 have an American Dream Account established 

11 through a grant awarded under subsection 

12 (c)(1); 

13 (C) provide data (including the interest ac14 crued on college savings accounts that are part 

15 of an American Dream Account) in the aggre16 gate, regarding students who have an American 

17 Dream Account established through a grant 

18 awarded under subsection (c)(1), as compared 

19 to similarly situated students who do not have 

20 an American Dream Account; 

21 (D) identify best practices developed by the 

22 eligible entities receiving grants under this sec23 tion; 

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1 (E) identify any issues related to student 

2 privacy and stakeholder accessibility to Amer3 ican Dream Accounts; 

4 (F) provide feedback from participating 

5 students and the parents of such students 

6 about the grant program, including— 

7 (i) the impact of the program; 

8 (ii) aspects of the program that are 

9 successful; 

10 (iii) aspects of the program that are 

11 not successful; and 

12 (iv) any other data required by the 

13 Secretary; and 

14 (G) provide recommendations for expand15 ing the American Dream Accounts program. 

16 (g) ELIGIBILITY TO RECEIVE FEDERAL STUDENT

17 FINANCIAL AID.—Notwithstanding any other provision of 

18 law, any funds that are in the college savings account por19 tion of a student’s American Dream Account shall not af20 fect such student’s eligibility to receive Federal student 

21 financial aid, including any Federal student financial aid 

22 under the Higher Education Act of 1965 (20 U.S.C. 1001 

23 et seq.), and shall not be considered in determining the 

24 amount of any such Federal student aid. 

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1 (h) AUTHORIZATION OF APPROPRIATIONS.—To carry 

2 out this section, there are authorized to be appropriated 

3 such sums as may be necessary for fiscal year 2015 and 

4 each of the 4 succeeding fiscal years. 

5 SEC. 1110. STUDY ON THE IMPACT OF FEDERAL FINANCIAL 

6 AID CHANGES ON GRADUATE STUDENTS. 

7 (a) IN GENERAL.—Not later than 1 year after the 

8 date of enactment of this Act, the Secretary of Education, 

9 acting through the Director of the Institute of Education 

10 Sciences, shall begin conducting a study of the impact of 

11 recent policy changes to title IV of the Higher Education 

12 Act of 1965 on graduate students. 

13 (b) PURPOSE.—The purpose of the study is to exam14 ine the effects of significant changes in Federal student 

15 financial aid policy on access, affordability, and labor mar16 ket outcomes for graduate students. The study shall in17 clude an exploration of the impact of the following signifi18 cant changes: 

19 (1) The authorization of PLUS Loans for grad20 uate students. 

21 (2) The elimination of Federal Direct Stafford 

22 Loans for graduate students. 

23 (3) The increase in origination fees due to the 

24 sequestration order issued under the Balanced 

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1 Budget and Emergency Deficit Control Act of 1985 

2 (2 U.S.C. 900 et seq.) for fiscal year 2013. 

3 (4) Differentiation in interest rates between un4 dergraduate and graduate Federal Direct Unsub5 sidized Stafford loans. 

6 (5) Changes to the income-based repayment 

7 plan described under section 493C (20 U.S.C. 

8 1098e). 

9 (c) CONTENTS.—The study shall include— 

10 (1) information about the effects of the changes 

11 described in subsection (b) on graduate students, 

12 disaggregated by the student’s age, race, ethnicity, 

13 gender, income, status as an individual with a dis14 ability, and type of institution of higher education 

15 that the graduate student attended for such stu16 dent’s graduate program (including 2-year or 4-year 

17 institution of higher education, public or private in18 stitution of higher education, and proprietary or 

19 nonprofit institution of higher education); and 

20 (2) an examination of the effects of the changes 

21 described in subsection (b) on— 

22 (A) changes in graduate enrollment pat23 terns (such as increases or decreases in enroll24 ment); 

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1 (B) net tuition and fees for graduate stu2 dents; 

3 (C) the aggregate amount of Federal stu4 dent loan debt resulting from graduate edu5 cation, as a whole and disaggregated by each 

6 type of Federal loan under title IV; 

7 (D) the median level of individual student 

8 loan debt that is the result of graduate edu9 cation (ensuring that the amount of under10 graduate student loan debt is distinguished 

11 from the amount of graduate student loan 

12 debt); 

13 (E) default rates, and the range of 

14 amounts of unpaid debt, for title IV loans for 

15 graduate students; 

16 (F) the use of each type of loan repayment 

17 plan under title IV, including income-based re18 payment, and the median level of graduate stu19 dent debt for individuals in each repayment 

20 plan; 

21 (G) the number of individuals who have a 

22 graduate degree that enter public service jobs; 

23 (H) the level of total educational debt for 

24 graduate students, including Federal student 

25 loans and private education loans; 

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1 (I) the correlation between high graduate 

2 student debt levels and household consumption 

3 (including the purchasing of homes and auto4 mobiles) and retirement savings; and 

5 (J) such other factors as the Secretary 

6 may determine; 

7 (3) an analysis of how the effects of the 

8 changes described in subsection (b) differ according 

9 to— 

10 (A) whether an individual was or is attend11 ing graduate school on a full-time or part-time 

12 basis; and 

13 (B) whether an individual has or is pur14 suing a master’s degree, a doctorate research 

15 degree, or a doctorate professional practice de16 gree; 

17 (4) a detailed explanation of the impact of such 

18 changes on students who were eligible for a Federal 

19 Pell Grant as an undergraduate student, women, 

20 and traditionally underrepresented populations; and 

21 (5) policy recommendations designed to improve 

22 access, affordability, and labor market outcomes for 

23 graduate students. 

24 (d) REPORTS.— 

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1 (1) INTERIM REPORTS.—Not later than 18 

2 months after the commencement of the study de3 scribed under this section, and annually thereafter, 

4 the Secretary shall evaluate the progress of the 

5 study and report any short-term findings to the ap6 propriate committees of Congress. 

7 (2) FINAL REPORT.—Upon completion of the 

8 study described under this section, the Secretary 

9 shall prepare and submit a final report regarding 

10 the findings of the study to the appropriate commit11 tees of Congress. 

12 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to carry out this section 

14 such sums as may be necessary for fiscal year 2015 and 

15 each of the 4 succeeding fiscal years. 

Æ 

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