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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 406 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 406

 To amend the Higher Education Act of 1965 to provide for new program 
                          review requirements.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2013

   Mr. Lautenberg (for himself, Mr. Harkin, Mr. Rockefeller, and Mr. 
    Durbin) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
 To amend the Higher Education Act of 1965 to provide for new program 
                          review requirements.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Students First Act of 2013''.

SEC. 2. PROGRAM REVIEW AND DATA.

    (a) In General.--Section 498A of the Higher Education Act of 1965 
(20 U.S.C. 1099c-1) is amended to read as follows:

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

    ``(a) Definitions.--In this section:
            ``(1) Default manipulation.--
                    ``(A) In general.--The term `default manipulation' 
                means the knowing and willful engagement in practices 
                designed to evade sanctions resulting from the 
                application of a default rate determination to an 
                institution, such as branching, consolidation of 
                campuses or Office of Postsecondary Education 
                Identification codes that designate campuses, change of 
                ownership or control, serial forbearance, or any 
                similar device or practice, as determined by the 
                Secretary.
                    ``(B) Exclusion.--The term `default manipulation' 
                shall not include a practice carried out in accordance 
                with a default management plan that has been approved 
                by the Secretary.
            ``(2) Executive compensation.--The term `executive 
        compensation' means the wages, salary, fees, commissions, 
        fringe benefits, deferred compensation, retirement 
        contributions, options, bonuses, property, and any other form 
        of remuneration that the Secretary determines is appropriate, 
        given to employees who are among the 25 highest compensated 
        employees for the taxable year.
            ``(3) Federal funds.--The term `Federal funds' means funds 
        provided directly to an institution or to a student attending 
        such institution under any of the following provisions of law:
                    ``(A) This title.
                    ``(B) Chapter 30, 31, 32, 33, 34, or 35 of title 
                38, United States Code.
                    ``(C) Chapter 101, 105, 106A, 1606, 1607, or 1608 
                of title 10, United States Code.
                    ``(D) Section 1784a, 2005, or 2007 of title 10, 
                United States Code.
                    ``(E) Title I of the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.).
                    ``(F) The Adult Education and Family Literacy Act 
                (20 U.S.C. 9201 et seq.).
            ``(4) Recruiting and marketing activities.--
                    ``(A) In general.--The term `recruiting and 
                marketing activities' means--
                            ``(i) advertising and promotion activities, 
                        including naming rights, paid announcements in 
                        newspapers, magazines, or electronic media, on 
                        radio, television, or billboards, or through 
                        any other public medium of communication, or 
                        paying for displays or promotions at job fairs, 
                        military installations, or college recruiting 
                        events;
                            ``(ii) efforts to identify and attract 
                        prospective students, either directly or 
                        through a contractor or other third party, 
                        including contact concerning a prospective 
                        student's potential enrollment or application 
                        for a grant or loan or work assistance under 
                        this title, or participation in preadmission or 
                        advising activities, including--
                                    ``(I) paying employees responsible 
                                for overseeing enrollment and for 
                                contacting potential students in 
                                person, by phone, by email, or by other 
                                internet communications regarding 
                                enrollment; and
                                    ``(II) soliciting an individual to 
                                provide contact information to an 
                                institution of higher education, 
                                including websites established for such 
                                purpose and funds paid to third parties 
                                for such purpose; and
                            ``(iii) such other activities as the 
                        Secretary may prescribe, including paying for 
                        promotion or sponsorship of education or 
                        military-related associations.
                    ``(B) Exceptions.--Any activity that is required as 
                a condition of receipt of funds by an institution under 
                this title or is specifically authorized under this 
                title, shall not be considered to be a recruiting or 
                marketing activity under subparagraph (A).
            ``(5) Relevant federal agency.--The term `relevant Federal 
        agency' means--
                    ``(A) the Department of Education;
                    ``(B) the Department of Veterans Affairs;
                    ``(C) the Department of Defense;
                    ``(D) the Consumer Financial Protection Bureau;
                    ``(E) the Federal Trade Commission; or
                    ``(F) any other Federal agency that provides 
                Federal student assistance or that the Secretary 
                determines appropriate.
            ``(6) Relevant state entity or agency.--The term `relevant 
        State entity or agency' means--
                    ``(A) an appropriate State licensing or authorizing 
                agency;
                    ``(B) a State Attorney General; or
                    ``(C) any other State entity or agency that the 
                Secretary determines appropriate.
            ``(7) Serial forbearance.--The term `serial forbearance' 
        means repeatedly attempting to move students' loans into 
        forbearance or default management, especially when the 
        forbearance and default management is not in the best, long 
        term financial interests of the student.
            ``(8) Student default risk.--The term `student default 
        risk' means a risk that is reflected as a percentage that is 
        calculated by taking an institution's 3-year cohort default 
        rate, as defined in section 435(m), for the most recent fiscal 
        year available, and multiplying it by the percentage of 
        students enrolled at such institution receiving a Federal 
        student loan authorized under this title during the previous 
        academic year.
    ``(b) Program Reviews for Institutions Participating Under Title 
IV.--
            ``(1) In general.--The Secretary shall conduct program 
        reviews, including on-site visits, of each institution of 
        higher education participating in a program authorized under 
        this title that poses a significant risk of failure to comply 
        with this title, as described in paragraphs (2) and (3).
            ``(2) Mandatory reviews.--
                    ``(A) In general.--The Secretary shall, on an 
                annual basis, conduct program reviews of each 
                institution of higher education participating in a 
                program authorized under this title that meets 1 or 
                more of the following criteria:
                            ``(i) As of the date of the determination--
                                    ``(I) more than 15 percent of the 
                                students enrolled at the institution 
                                have received a Federal Direct 
                                Unsubsidized Stafford Loan during the 
                                previous year; and
                                    ``(II) the institution has a cohort 
                                default rate, as defined in section 
                                435(m), that is more than twice the 
                                average cohort default rate of all 
                                institutions participating in programs 
                                authorized under this title.
                            ``(ii) As of the date of the 
                        determination--
                                    ``(I) the institution has a cohort 
                                default rate, as defined in section 
                                435(m), that exceeds the national 
                                average; and
                                    ``(II) the institution has a cohort 
                                default rate, as so defined, in dollar 
                                volume that places the institution in 
                                the highest 1 percent of institutions 
                                participating in programs authorized 
                                under this title.
                            ``(iii) In the case of proprietary 
                        institutions of higher education, the 
                        institution received more than 85 percent of 
                        the institution's revenues from Federal funds, 
                        as defined in subsection (a), during the 2 most 
                        recent years for which data is available.
                            ``(iv) The institution is among the top 1 
                        percent of institutions participating in 
                        programs authorized under this title in terms 
                        of numbers or rates of complaints related to 
                        Federal student financial aid, educational 
                        practices and services, or recruiting and 
                        marketing practices, as reported in the system 
                        for collecting and tracking student complaints 
                        established under subsection (e)(4).
                            ``(v) As of the date of the determination, 
                        the institution is among the top 1 percent of 
                        institutions in terms of low graduation rates 
                        of all institutions participating in programs 
                        authorized under this title.
                            ``(vi) The institution spends more than 20 
                        percent of the institution's revenues on 
                        recruiting and marketing activities and 
                        executive compensation.
                            ``(vii) The institution's enrollment has 
                        increased by more than 50 percent in 2 years or 
                        has more than doubled in 5 years.
                            ``(viii) The institution has engaged in 
                        default manipulation.
                            ``(ix) In the period immediately following 
                        the cohort default rate period, the 
                        institution's loan defaults increase by 50 
                        percent or more.
                            ``(x) The institution is found to have 
                        deficiencies, or compliance problems, under 
                        this title, or is at significant risk of 
                        failing to comply with applicable Federal or 
                        State laws, by a relevant Federal agency or a 
                        relevant State entity or agency, including the 
                        Comptroller General of the United States.
                            ``(xi) The institution has been put on 
                        probation or show cause by its accrediting 
                        agency.
                            ``(xii) The institution or the 
                        institution's executives have publically 
                        acknowledged or disclosed that the institution 
                        is in violation or noncompliance with any 
                        provision of this title.
                    ``(B) Publication of institutions reviewed.--The 
                Secretary shall--
                            ``(i) post, on a publically available 
                        website, the name of each institution of higher 
                        education that is reviewed under subparagraph 
                        (A);
                            ``(ii) indicate, on such website, with 
                        respect to each such institution, which of the 
                        mandatory review criteria, outlined in 
                        subparagraph (A), such institution met; and
                            ``(iii) indicate on the Department's 
                        College Navigator website the name of each 
                        institution of higher education that is 
                        reviewed under subparagraph (A).
                    ``(C) Institutional disclosure of review.--Each 
                institution of higher education that is reviewed under 
                subparagraph (A) shall--
                            ``(i) post on the home page of the 
                        institution's website that the institution will 
                        be subject to a mandatory program review and 
                        why the institution is being reviewed and shall 
                        maintain such posting and explanation for 1 
                        year or until the Department has issued its 
                        final program review report under subsection 
                        (c)(5)(C), whichever occurs sooner;
                            ``(ii) provide a clear, conspicuous 
                        disclosure of the information described in 
                        clause (i) to students who inquire about 
                        admission to the institution or submit an 
                        application for admission to the institution 
                        prior to the student signing an enrollment 
                        agreement with the institution, for 1 year or 
                        until the Department has issued its final 
                        program review report under subsection 
                        (c)(5)(C), whichever occurs sooner; and
                            ``(iii) include the information described 
                        in clause (i) on materials of acceptance or 
                        admission submitted to each student before the 
                        student enrolls in the institution, for 1 year 
                        or until the Department has issued its final 
                        program review report under subsection 
                        (c)(5)(C), whichever occurs sooner.
            ``(3) Risk-based reviews.--
                    ``(A) In general.--The Secretary shall use a risk-
                based approach to select on an annual basis not less 
                than 2 percent of institutions of higher education 
                participating in a program authorized under this title 
                that are not reviewed under paragraph (2), for a 
                program review. This approach shall prioritize program 
                reviews of institutions that--
                            ``(i) have received large increases in 
                        funding under this title during the 5-year 
                        period preceding the date of the determination;
                            ``(ii) have a large proportion of overall 
                        revenue from Federal funds, as defined in 
                        subsection (a);
                            ``(iii) have a significant fluctuation in 
                        Federal Stafford Loan volume, Federal Direct 
                        Stafford Loan volume, or Federal Pell Grant 
                        award volume, or any combination thereof, in 
                        the year for which the determination is made, 
                        compared to the year prior to such year, that 
                        is not accounted for by the changes in the 
                        Federal Stafford Loan program, the Federal 
                        Direct Stafford Loan program, or the Federal 
                        Pell Grant program, or any combination thereof;
                            ``(iv) have experienced sharp increases in 
                        enrollment in absolute numbers or rate of 
                        growth;
                            ``(v) have high rates of defaults, relative 
                        to all other institutions of higher education 
                        participating in a program authorized under 
                        this title, for loans issued under this title 
                        over the lifetime of the loans;
                            ``(vi) have high default rates, in dollar 
                        volume, or high cohort default rates for loans 
                        issued under this title;
                            ``(vii) have a student default risk that is 
                        more than 2 times the national average student 
                        default risk for all institutions participating 
                        in a program under this title;
                            ``(viii) have a high proportion or high 
                        rate of complaints related to Federal student 
                        financial aid, educational practices and 
                        services, or recruiting and marketing 
                        practices, as reported in the system for 
                        collecting and tracking student complaints 
                        established under subsection (e)(4);
                            ``(ix) have extremely low graduation rates;
                            ``(x) are in poor financial health 
                        according to financial responsibility standards 
                        described in section 498(c);
                            ``(xi) are spending more than 15 percent of 
                        the institution's revenues on recruiting and 
                        marketing activities and executive 
                        compensation;
                            ``(xii) in the case of proprietary 
                        institutions of higher education, have large 
                        profit margins and profit growth;
                            ``(xiii) have been put on notice or warning 
                        by its accrediting agency;
                            ``(xiv) in the case of proprietary 
                        institutions of higher education, have 
                        experienced a change in ownership of the 
                        institution, including a buyout;
                            ``(xv) in the case of proprietary 
                        institutions of higher education, have acquired 
                        a nonprofit institution of higher education at 
                        any point during the 1-year period preceding 
                        the date of the determination; or
                            ``(xvi) were for-profit institutions of 
                        higher education and have become non-profit 
                        institutions of higher education at any time 
                        during the 1-year period preceding the date of 
                        the determination.
                    ``(B) Change in ownership.--In this paragraph, the 
                term `change in ownership' means 1 person or more than 
                1 person acting as a group, acquiring an ownership 
                interest or a majority of the stock of the institution 
                that, in the aggregate, constitutes more than 50 
                percent of the total fair market value or total voting 
                power, as applicable, of such institution.
            ``(4) Additional program reviews.--The Secretary may also 
        conduct additional program reviews of institutions of higher 
        education participating in a program authorized under this 
        title that are not determined to pose a significant risk of 
        failure to comply with provisions of this title.
            ``(5) Public disclosure of violations.--The Secretary 
        shall--
                    ``(A) post, on a publically available website, the 
                name of each institution of higher education that is 
                found to have violated a provision of this title 
                knowingly and willfully or with gross negligence;
                    ``(B) indicate on such website, with respect to 
                each such institution, which of the provisions of this 
                title the institution violated; and
                    ``(C) maintain such posting until the date the 
                institution of higher education rectifies the violation 
                or the date that is 1 year after the date the Secretary 
                issues the final program review report under subsection 
                (c)(5)(C) with respect to such institution, whichever 
                date is later.
            ``(6) Institutional disclosure of violations.--Each 
        institution of higher education that is found to have violated 
        a provision of this title knowingly and willfully or with gross 
        negligence shall--
                    ``(A) not later than 15 days after the date of 
                issuance of the final program review report containing 
                the finding, post on the home page of the institution's 
                website that the institution has been found to have 
                violated a provision of this title knowingly and 
                willfully or with gross negligence, including the 
                provision the institution was found to have violated;
                    ``(B) maintain such posting until the date the 
                institution rectifies the violation or the date that is 
                1 year after the date the Secretary issues the final 
                program review report under subsection (c)(5)(C) with 
                respect to such institution, whichever date is later; 
                and
                    ``(C) include the information described in 
                subparagraph (A) on materials of acceptance or 
                admission submitted to each student before the student 
                enrolls in the institution until the date the 
                institution rectifies the violation or the date that is 
                1 year after the date the Secretary issues the final 
                program review report under subsection (c)(5)(C) with 
                respect to such institution, whichever date is later.
    ``(c) Characteristics of Program Reviews.--
            ``(1) Notice.--The Secretary may give not more than 72 
        hours notice to an institution of higher education that will 
        undergo a program review pursuant to subsection (b) of such 
        review.
            ``(2) Sharing of information.--Without sharing personally 
        identifiable information and in accordance with section 444 of 
        the General Education Provisions Act (20 U.S.C. 1232g, commonly 
        known as the `Family Educational Rights and Privacy Act of 
        1974'), the Secretary shall share all final program review 
        results conducted under this section with relevant Federal 
        agencies and relevant State entities or agencies, and 
        appropriate accrediting agencies and associations, to enable 
        such agencies, entities, and associations to determine the 
        eligibility of institutions for funds or accreditation.
            ``(3) Coordination of reviews.--To the extent practicable, 
        the Secretary shall coordinate program reviews conducted under 
        this section with other reviews and audits conducted by the 
        Department, and with relevant Federal agencies and relevant 
        State entities or agencies.
            ``(4) Conduct of reviews.--When conducting program reviews 
        under this section, the Secretary shall assess the institution 
        of higher education's compliance with the provisions of this 
        title. The program reviews shall include, at a minimum, the 
        following:
                    ``(A) With regard to the institutional information, 
                the Secretary shall assess financial capability, 
                administrative capability, and program integrity, 
                including whether the institution--
                            ``(i) knowingly and willfully misused 
                        Federal student aid from any source;
                            ``(ii) violated section 487(a)(20);
                            ``(iii) engaged in substantial 
                        misrepresentation of the nature of its 
                        educational program, its financial charges, or 
                        the employability of its graduates; or
                            ``(iv) violated the Department's program 
                        integrity regulations.
                    ``(B) With regard to student information, the 
                Secretary shall examine--
                            ``(i) graduation rates compared with all 
                        other institutions participating in a program 
                        authorized under this title;
                            ``(ii) student complaints, including 
                        interviews with current and former students, 
                        faculty and staff, and accrediting agencies; 
                        and
                            ``(iii) information from the complaint data 
                        system established under subsection (e)(4).
            ``(5) Administrative process.--
                    ``(A) Training.--The Secretary shall provide 
                training to personnel of the Department designed to 
                improve the quality of financial and compliance audits 
                and program reviews conducted under this section, 
                including instruction about appropriately and 
                effectively conducting such audits and reviews for 
                institutions of higher education from different sectors 
                of higher education. In providing the training, the 
                Secretary shall not use funds appropriated to carry out 
                this title.
                    ``(B) Carrying out program reviews.--In carrying 
                out program reviews under this section, the Secretary 
                shall--
                            ``(i) establish guidelines designed to 
                        ensure uniformity of practice in the conduct of 
                        such reviews;
                            ``(ii) make available to each institution 
                        of higher education participating in a program 
                        authorized under this title complete copies of 
                        all review guidelines and procedures used in 
                        program reviews, except that internal training 
                        materials for Department staff related to 
                        identifying instances of fraud, 
                        misrepresentation, or intentional noncompliance 
                        shall not be disclosed;
                            ``(iii) permit an institution of higher 
                        education to correct or cure an administrative, 
                        accounting, or recordkeeping error within 90 
                        days of the issuance of the final program 
                        review report, if the error is not part of a 
                        pattern of error and there is no evidence of 
                        fraud or misconduct related to the error;
                            ``(iv) without sharing personally 
                        identifiable information and in accordance with 
                        section 444 of the General Education Provisions 
                        Act (20 U.S.C. 1232g, commonly known as the 
                        `Family Educational Rights and Privacy Act of 
                        1974'), inform the relevant Federal agencies 
                        and relevant State entities or agencies, and 
                        accrediting agency or association, whenever the 
                        Secretary finds a violation of this title or 
                        sanctions an institution of higher education 
                        under this section, section 498, or section 
                        432; and
                            ``(v) provide to an institution of higher 
                        education 90 calendar days to review and 
                        respond to any program review report and 
                        relevant materials related to the report before 
                        any final program review report is issued.
                    ``(C) Final program review report.--
                            ``(i) In general.--Not later than 180 
                        calendar days after issuing a program review 
                        report under this section, the Secretary shall 
                        review and consider an institution of higher 
                        education's response, and issue a final program 
                        review report or audit determination. The final 
                        report shall include--
                                    ``(I) a written statement 
                                addressing the institution of higher 
                                education's response;
                                    ``(II) a written statement of the 
                                basis for such report or determination; 
                                and
                                    ``(III) a copy of the institution's 
                                response.
                            ``(ii) Confidentiality.--The Secretary 
                        shall maintain and preserve at all times the 
                        confidentiality of any program review report 
                        until a final program review report is issued, 
                        other than to inform the relevant Federal 
                        agencies and relevant State entities or 
                        agencies, and accrediting agency or 
                        association, as required under this section.
                            ``(iii) Reports disclosed to the 
                        institution.--The Secretary shall promptly 
                        disclose each program review report to the 
                        institution of higher education under review.
                            ``(iv) Removal of personally identifiable 
                        information.--Any personally identifiable 
                        information from the education records of 
                        students shall be removed from any program 
                        review report before the report is shared with 
                        any relevant Federal agency, State entity or 
                        agency, or accrediting agency or association.
                    ``(D) Follow-up reviews after violations.--The 
                Secretary shall conduct follow-up reviews of each 
                institution of higher education that has been found in 
                violation of a provision of this title not later than 1 
                year after the date of such finding. Such follow-up 
                reviews may only assess whether the institution of 
                higher education has corrected violations found in a 
                previous program review.
    ``(d) Sanctions.--
            ``(1) In general.--The Secretary shall immediately sanction 
        any institution of higher education that, after the full 
        program review process under this section, is found to have 
        violated a provision of this title.
            ``(2) Available sanctions.--
                    ``(A) Criteria.--
                            ``(i) In general.--Not later than 180 days 
                        after the date of enactment of the Students 
                        First Act of 2012, the Secretary shall 
                        establish in regulations, without regard to 
                        sections 482(c) and 492, section 437 of the 
                        General Education Provisions Act, and section 
                        553 of title 5, United States Code, a 
                        comprehensive methodology and criteria for 
                        sanctions against institutions of higher 
                        education that, after the full program review 
                        process under this section, are found to have 
                        violated a provision of this title.
                            ``(ii) Parameters of sanctions.--The 
                        sanctions described in clause (i) shall--
                                    ``(I) be in addition to other 
                                sanctions available to the Secretary 
                                under this Act; and
                                    ``(II) take into account--
                                            ``(aa) the severity of the 
                                        violation of this title;
                                            ``(bb) whether the 
                                        institution violated this title 
                                        knowingly and willfully or with 
                                        gross negligence;
                                            ``(cc) whether the 
                                        violation represents a 
                                        persistent and documented 
                                        pattern of violating this 
                                        title; and
                                            ``(dd) the extent of the 
                                        harm or potential harm that 
                                        such violations caused or had 
                                        the potential to cause upon 
                                        students and borrowers.
                    ``(B) Sanctions for failure to comply with the 
                program review process.--The Secretary may sanction an 
                institution that fails to fully comply with the program 
                review process described in this section, including the 
                reporting requirements described in paragraphs (2)(C) 
                and (6) of subsection (b).
                    ``(C) Waiver.--The Secretary may waive sanctions 
                described in subparagraph (A) with respect to an 
                institution that has committed a minor violation of a 
                provision of this title if--
                            ``(i) the violation was not committed 
                        knowingly and willfully or with gross 
                        negligence; and
                            ``(ii) the violation has been rectified by 
                        such institution not later than 60 days after 
                        publication of the institution's final program 
                        review report.
            ``(3) Revocation of title iv eligibility.--Notwithstanding 
        section 487(d)(2), the Secretary shall revoke the eligibility 
        to participate in student aid programs under this title of an 
        institution of higher education that, after undergoing a 
        program review, is determined to have--
                    ``(A) knowingly and willfully misused Federal 
                student aid from any source;
                    ``(B) violated section 487(a)(20);
                    ``(C) engaged in substantial misrepresentation of 
                the nature of its educational program, its financial 
                charges, or the employability of its graduates; or
                    ``(D) violated the Department's program integrity 
                regulations.
            ``(4) Sanctions for officers of institutions.--
                    ``(A) Officer.--In this paragraph, the term 
                `officer of an institution of higher education' 
                includes the President, Chief Executive Officer, and 
                Chief Financial Officer of an institution of higher 
                education.
                    ``(B) Sanctions.--The Secretary shall extend 
                sanctions, including financial penalties, to an officer 
                of an institution of higher education that participates 
                in a program under this title that knowingly and 
                willfully or with gross negligence, violates a 
                provision of this title. Such sanctions shall include--
                            ``(i) prohibiting an officer of an 
                        institution of higher education that has 
                        knowingly and willfully or with gross 
                        negligence violated a provision of this title 
                        from being employed by such institution or 
                        another institution of higher education that 
                        participates in a program under this title for 
                        a period of 5 years from the date of the 
                        determination of the violation; and
                            ``(ii) assessing a financial penalty 
                        against an officer of an institution of higher 
                        education that has knowingly and willfully or 
                        with gross negligence violated a provision of 
                        this title that is equal to the officer's 
                        annual compensation for the year for which the 
                        determination is made.
            ``(5) Financial penalties for institutions.--
                    ``(A) In general.--With respect to each institution 
                of higher education for which the Secretary has revoked 
                eligibility to participate in student aid programs 
                under this title or has determined to have violated 
                this title knowingly and willfully or with gross 
                negligence, the Secretary shall assign penalties of not 
                less than 20 percent of the amount of funds received by 
                the institution from Federal funds, as defined in 
                subsection (a), for the last year for which data are 
                available, which, notwithstanding any other provision 
                of law, shall be retained by the Secretary and placed 
                in the Student Relief Fund established by the Secretary 
                under subparagraph (C).
                    ``(B) Penalties for institutions that do not have 
                title iv eligibility revoked.--Notwithstanding any 
                other provision of law, with respect to each 
                institution of higher education that has violated a 
                provision of this title and for which the Secretary has 
                determined has harmed a student or the taxpayers but is 
                not an institution described in subparagraph (A), the 
                Secretary shall assign penalties of not more than 
                $100,000, which shall be retained by the Secretary and 
                placed in the Student Relief Fund established by the 
                Secretary under subparagraph (C).
                    ``(C) Student relief fund.--
                            ``(i) Establishment.--The Secretary shall 
                        establish a Student Relief Fund that shall be 
                        used, subject to the availability of funds, to 
                        provide financial relief, in a manner 
                        determined by the Secretary and which may 
                        include relief such as tuition reimbursement or 
                        full or partial loan forgiveness, to any 
                        student enrolled in an institution of higher 
                        education that has failed to comply with the 
                        standards and agreements created for program 
                        participation eligibility under section 487 or 
                        has been sanctioned under this subsection.
                            ``(ii) Authorization of appropriations.--In 
                        addition to funds derived from financial 
                        penalties assessed pursuant to subparagraph 
                        (A), there are authorized to be appropriated 
                        such sums as may be necessary to carry out this 
                        subparagraph.
            ``(6) Lifting of sanctions.--Notwithstanding any other 
        provision of this title, an institution of higher education 
        that has been sanctioned by the Secretary under this subsection 
        or any other provision of this title may not have such 
        sanctions lifted until the Secretary has conducted a subsequent 
        follow-up review and found the institution to be in compliance 
        with this title.
    ``(e) Data Collection and Complaint Tracking.--
            ``(1) Establishment of database.--The Secretary shall 
        establish and operate a central database of information on 
        institutional accreditation, eligibility, and certification 
        that includes all relevant information--
                    ``(A) available to the Department;
                    ``(B) made available to the Secretary by the heads 
                of relevant Federal agencies;
                    ``(C) from accrediting agencies or associations; 
                and
                    ``(D) available from a guaranty agency.
            ``(2) Development of plan.--In order to carry out the 
        responsibilities described in paragraph (1), the Secretary 
        shall develop a plan to carry out and collect all relevant 
        information.
            ``(3) Information available.--The Secretary shall make the 
        information obtained pursuant to paragraph (1) readily 
        available to the relevant Federal agencies and relevant State 
        entities or agencies, all institutions of higher education, 
        guaranty agencies, States, and other organizations 
        participating in the programs authorized under this title.
            ``(4) Complaint tracking.--
                    ``(A) Establishment of complaint tracking system.--
                The Secretary shall establish a single, toll-free 
                telephone number, a website, and a database, to 
                facilitate the centralized collection of, monitoring 
                of, and response to student and staff complaints 
                regarding Federal student financial aid, educational 
                practices and services, and recruiting and marketing 
                practices.
                    ``(B) Establishment of complaint tracking office.--
                The Secretary shall establish within the Department an 
                office whose functions shall include establishing, 
                administering, and disseminating widely information 
                about the complaint tracking system established under 
                subparagraph (A).
                    ``(C) Sharing information with federal agencies.--
                The Secretary shall coordinate with relevant Federal 
                agencies to collect complaints from and route 
                complaints to such agencies, as appropriate, with 
                respect to educational products or services.
                    ``(D) Participation of institutions.--
                            ``(i) In general.--The Secretary shall 
                        communicate with an institution of higher 
                        education about complaints received through the 
                        complaint tracking system with respect to such 
                        institution.
                            ``(ii) Summary.--Without sharing any 
                        personally identifiable information and in 
                        accordance with section 444 of the General 
                        Education Provisions Act (20 U.S.C. 1232g, 
                        commonly known as the `Family Educational 
                        Rights and Privacy Act of 1974'), the Secretary 
                        shall provide a summary to an institution of 
                        higher education, at least once a year, of the 
                        numbers and types of complaints that have been 
                        filed with respect to such institution.
                            ``(iii) Sharing individual complaints.--
                        Notwithstanding any other provision of law, the 
                        Secretary may share a complaint and the 
                        information of the individual submitting the 
                        complaint with the institution against which 
                        the complaint has been filed, if such 
                        individual who has filed the complaint affirms 
                        that the Secretary may share that individual's 
                        personal information and complaint with the 
                        institution.
                            ``(iv) Responses from institutions.--The 
                        Secretary shall--
                                    ``(I) provide an institution with 
                                90 days to respond to a complaint filed 
                                with respect to the institution with 
                                the complaint tracking system 
                                established under subparagraph (A); and
                                    ``(II) consider such response and 
                                any resolution of the complaint when 
                                utilizing the information from the 
                                complaint during a program review.
            ``(5) Data sharing required.--The Secretary shall share 
        consumer complaint information with, and collect such 
        information from, relevant Federal agencies and relevant State 
        entities or agencies regarding educational products or 
        services, in accordance with applicable data privacy laws and 
        regulations, except that any personally identifiable 
        information from the education records of students shall not be 
        shared.
            ``(6) Transparency.--The Secretary shall publish on a 
        publically accessible website information and analyses about 
        complaint numbers, complaint types, and, where applicable, 
        information about the resolution of complaints collected under 
        this subsection.''.
    (b) Program Participation Agreements.--Section 487(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the 
end the following:
            ``(30) The President, Chief Executive Officer, and Chief 
        Financial Officer of the institution shall each--
                    ``(A) personally sign each program participation 
                agreement for the institution; and
                    ``(B) be liable for the institution's compliance 
                with such agreement and with the provisions of this 
                title, as provided in section 498A(d)(4).''.
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