II 

114TH CONGRESS 

2D SESSION S. 3368 

To amend the Higher Education Act of 1965 to improve college access 

and college completion for all students. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 21, 2016 

Mr. COONS (for himself and Mr. ISAKSON) 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 improve 

college access and college completion for all students. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Access, Success, and 

5 Persistence in Reshaping Education Act of 2016’’ or the 

6 ‘‘ASPIRE Act’’. 


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1 SEC. 2. IMPROVING COLLEGE ACCESS AND COMPLETION 

2 FOR ALL STUDENTS. 

3 (a) IN GENERAL.—Part G of title IV of the Higher 

4 Education Act of 1965 (20 U.S.C. 1088 et seq.) is amend5 ed by adding at the end the following: 

6 ‘‘SEC. 493E. IMPROVING COLLEGE ACCESS AND COMPLE7 TION FOR ALL STUDENTS. 

8 ‘‘(a) DEFINITIONS.—Except as otherwise provided in 

9 this section: 

10 ‘‘(1) AVERAGE STUDENT-RELATED EXPENDI11 TURE.— 

12 ‘‘(A) IN GENERAL.—The term ‘average 

13 student-related expenditure’ means, with re14 spect to the most recent fiscal year ending be15 fore the October of an academic year, the total 

16 amount of an institution’s instructional expend17 itures, student services expenditures, and the 

18 proportion of academic support expenditures 

19 that goes towards instruction, divided by the 

20 number of full-time equivalent undergraduate 

21 students enrolled in the institution for the aca22 demic year. 

23 ‘‘(B) INSTRUCTIONAL EXPENDITURES.— 

24 The term ‘instructional expenditures’— 

25 ‘‘(i) includes— 


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1 ‘‘(I) expenditures for the colleges, 

2 schools, departments, and other in3 structional divisions of the institution 

4 and expenses for departmental re5 search and public service that are not 

6 separately budgeted; 

7 ‘‘(II) general academic instruc8 tion, occupational and vocational in9 struction, community education, pre10 paratory and adult basic education, 

11 and remedial and tutorial instruction 

12 conducted by the teaching faculty for 

13 the institution’s students; and 

14 ‘‘(III) expenses for both credit 

15 and non-credit activities; 

16 ‘‘(ii) may include information tech17 nology expenses related to instructional ac18 tivities if the institution separately budgets 

19 and expenses information technology re20 sources; and 

21 ‘‘(iii) does not include expenses for 

22 academic administration where the primary 

23 function is administration. 


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1 ‘‘(C) STUDENT SERVICES EXPENDI2 TURES.—The term ‘student services expendi3 tures’— 

4 ‘‘(i) includes expenses for admissions, 

5 registrar activities, and activities whose 

6 primary purpose is to contribute to the 

7 emotional and physical well-being of stu8 dents and to their intellectual, cultural, 

9 and social development outside the context 

10 of the formal instructional program; and 

11 ‘‘(ii) may include information tech12 nology expenses related to student service 

13 activities if the institution separately budg14 ets and expenses information technology 

15 resources, otherwise these expenses are in16 cluded in institutional support. 

17 ‘‘(D) ACADEMIC SUPPORT EXPENDI18 TURES.—The term ‘academic support expendi19 tures’ includes— 

20 ‘‘(i) expenses of activities and services 

21 that support the institution’s primary mis22 sions of instruction, research, and public 

23 service, including— 

24 ‘‘(I) the retention, preservation, 

25 and display of educational materials; 


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1 ‘‘(II) organized activities that 

2 provide support services to the aca3 demic functions of the institution; 

4 ‘‘(III) media such as audiovisual 

5 services; 

6 ‘‘(IV) academic administration; 

7 and 

8 ‘‘(V) formally organized and sep9 arately budgeted academic personnel 

10 development and course and cur11 riculum development expenses; and 

12 ‘‘(ii) information technology expenses 

13 related to academic support activities or, if 

14 an institution does not separately budget 

15 and expense information technology re16 sources, the costs associated with the three 

17 primary programs shall be applied to this 

18 function and the remainder to institutional 

19 support. 

20 ‘‘(E) FULL-TIME EQUIVALENT UNDER21 GRADUATE STUDENTS ENROLLED.—The term 

22 ‘full-time equivalent undergraduate students en23 rolled’ means the number of full-time under24 graduate students enrolled, plus— 


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1 ‘‘(i) in the case of an institution of 

2 higher education that is a public, 4-year 

3 institution, the number of part-time under4 graduate students enrolled multiplied by 

5 0.403543; 

6 ‘‘(ii) in the case of an institution of 

7 higher education that is a private, non8 profit or for-profit, 4-year institution, the 

9 number of part-time undergraduate stu10 dents enrolled multiplied by 0.392857; 

11 ‘‘(iii) in the case of an institution of 

12 higher education that is a public, 2-year 

13 institution, the number of part-time under14 graduate students enrolled multiplied by 

15 0.335737; and 

16 ‘‘(iv) in the case of an institution of 

17 higher education that is not described in 

18 clause (i), (ii), or (iii), the number of part19 time undergraduate students enrolled mul20 tiplied by 0.397058. 

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

22 The term ‘institution of higher education’ means an 

23 institution of higher education (as defined in section 

24 101(a)) or a proprietary institution of higher edu25 cation (as defined in section 102(b))— 


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1 ‘‘(A) that predominately awards more 

2 bachelor’s degrees than associate’s degrees and 

3 certificates; and 

4 ‘‘(B) that enrolls not less than 30 first5 time, full-time, degree- or certificate-seeking un6 dergraduate students. 

7 ‘‘(3) LOW-INCOME OR WORKING CLASS STU8 DENT.—The term ‘low-income or working class stu9 dent’ means a student who is eligible to receive a 

10 Federal Pell Grant. 

11 ‘‘(4) MODERATE-INCOME STUDENT.—The term 

12 ‘moderate-income student’ means a student who is 

13 eligible to receive a Federal Direct Stafford Loan 

14 but not eligible to receive a Federal Pell Grant. 

15 ‘‘(5) REMEDIAL COURSE.—The term ‘remedial 

16 course’ means a course of study that is determined 

17 by the institution which offers such course to be nec18 essary to help a student be prepared for the pursuit 

19 of a first undergraduate bachelor’s degree but does 

20 not count for credit toward the degree. 

21 ‘‘(6) UNDERREPRESENTED MINORITY.—The 

22 term ‘underrepresented minority’ means American 

23 Indian, Alaskan Native, Black (not of Hispanic ori24 gin), Hispanic (including persons of Mexican, Puerto 


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1 Rican, Cuban, and Central or South American ori2 gin), or Pacific Islander minority group. 

3 ‘‘(b) IMPROVING COLLEGE ACCESS.— 

4 ‘‘(1) IN GENERAL.—In order for an institution 

5 of higher education to participate in any student fi6 nancial assistance program under this title, the insti7 tution shall comply with the improving college access 

8 program under this subsection. 

9 ‘‘(2) CALCULATION OF PERCENTAGES OF FED10 ERAL PELL GRANT RECIPIENTS.— 

11 ‘‘(A) IN GENERAL.—For academic year 

12 2017–2018 and for each succeeding academic 

13 year, the Secretary shall determine, for each in14 stitution of higher education, the percentage of 

15 bachelor’s degree-seeking students who enrolled 

16 at the institution for the first time in a full17 time capacity for the academic year who re18 ceived a Federal Pell Grant for such academic 

19 year. 

20 ‘‘(B) RANKING.— 

21 ‘‘(i) IN GENERAL.—For academic year 

22 2017–2018 and for each succeeding aca23 demic year, the Secretary shall rank the 

24 institutions according to the percentages 

25 determined under subparagraph (A). 


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1 ‘‘(ii) THRESHOLD MARK.—For aca2 demic year 2017–2018 and for each suc3 ceeding academic year, the Secretary shall 

4 determine, based on the rankings under 

5 this subparagraph, the percentage, deter6 mined under subparagraph (A), at which 

7 and above which marks the top 95 percent 

8 of those institutions ranked. 

9 ‘‘(C) FLOOR REACHED.— 

10 ‘‘(i) FLOOR MARK.—For academic 

11 year 2017–2018, the Secretary shall deter12 mine, based on the rankings under sub13 paragraph (B)(i) for such academic year, 

14 the percentage, determined under subpara15 graph (A), at which and above which 

16 marks the top 90 percent of those institu17 tions ranked. 

18 ‘‘(ii) COMPARISON OF THRESHOLD

19 MARK TO FLOOR MARK.—If the threshold 

20 mark determined under subparagraph 

21 (B)(ii) for an academic year is at or above 

22 the floor mark determined under clause (i), 

23 no institution shall be subject to the provi24 sions of paragraph (3) for such academic 

25 year. 


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1 ‘‘(3) CONSEQUENCES OF LOW RANKING.— 

2 ‘‘(A) NOTIFICATION.— 

3 ‘‘(i) IN GENERAL.— 

4 ‘‘(I) IN GENERAL.—Subject to 

5 paragraph (2)(C)(ii), for academic 

6 year 2017–2018 and for each suc7 ceeding academic year, the Secretary 

8 shall notify each institution of higher 

9 education that is in the bottom 5 per10 cent of those institutions ranked 

11 under paragraph (2)(B)— 

12 ‘‘(aa) that the institution is 

13 in such bottom 5 percent of those 

14 institutions ranked; 

15 ‘‘(bb) of the threshold mark 

16 described in paragraph (2)(B)(ii) 

17 that such institution must meet 

18 or rise above; and 

19 ‘‘(cc) that the institution has 

20 90 days to appeal to the Sec21 retary to be removed from the 

22 bottom 5 percent of those institu23 tions ranked. 

24 ‘‘(II) APPEAL.—An institution of 

25 higher education that is in the bottom 


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1 5 percent of those institutions ranked 

2 under paragraph (2)(B) for an aca3 demic year may appeal to the Sec4 retary, within 90 days of the notifica5 tion under subclause (I), to be re6 moved from such bottom 5 percent 

7 ranking if— 

8 ‘‘(aa) the Secretary’s cal9 culation of its ranking is not ac10 curate, and that recalculation of 

11 such ranking would raise the 

12 ranking of the institution above 

13 the bottom 5 percent of those in14 stitutions ranked; 

15 ‘‘(bb) the institution’s aver16 age percentage for the academic 

17 year and the 2 preceding aca18 demic years of bachelor’s degree19 seeking students who enrolled at 

20 the institution for the first time 

21 in a full-time capacity for the 

22 academic year and the 2 pre23 ceding academic years who re24 ceived a Federal Pell Grant for 

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1 ceding academic years is at or 

2 above the threshold mark de3 scribed in paragraph (2)(B)(ii) 

4 for the academic year; or 

5 ‘‘(cc) the institution’s per6 centage of all bachelor’s degree7 seeking students enrolled at the 

8 institution who received a Fed9 eral Pell Grant for the academic 

10 year is sufficiently high, as deter11 mined by the Secretary. 

12 ‘‘(ii) CONSUMER WARNING REPORT BY

13 THE SECRETARY.—For academic year 

14 2017–2018 and for each succeeding aca15 demic year, the Secretary shall issue a re16 port, following resolution of all appeals 

17 brought pursuant to the 90-day appeal pe18 riod, listing each institution of higher edu19 cation that is in the bottom 5 percent of 

20 those institutions ranked under paragraph 

21 (2)(B), and not removed from such rank22 ing in accordance with clause (i)(II), along 

23 with the percentage of bachelor’s degree24 seeking students who enrolled at each such 

25 institution for the first time in a full-time 


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1 capacity for the academic year who re2 ceived a Federal Pell Grant for such aca3 demic year. 

4 ‘‘(B) PLAN.—An institution of higher edu5 cation that is included in the report under sub6 paragraph (A)(ii) shall develop a plan, not later 

7 than 1 year after the date of the notification 

8 under subparagraph (A)(i)(I) and in consulta9 tion with the Secretary, to meet or rise above 

10 the threshold mark described in paragraph 

11 (2)(B)(ii) applicable for the academic year for 

12 which this institution was included in the report 

13 under subparagraph (A)(ii) that triggered such 

14 determination. 

15 ‘‘(C) CALCULATION OF AVERAGE.—For 

16 each institution of higher education that is in17 cluded in the report under subparagraph (A)(ii) 

18 for an academic year, the Secretary shall— 

19 ‘‘(i) grant the institution a hold harm20 less year for the academic year succeeding 

21 the academic year for which the institution 

22 receives notification under subparagraph 

23 (A)(i)(I); and 

24 ‘‘(ii) determine the average percentage 

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1 lowing the hold harmless academic year de2 scribed in clause (i) of bachelor’s degree3 seeking students who enrolled at the insti4 tution for the first time in a full-time ca5 pacity for each of such 3 succeeding aca6 demic years who received a Federal Pell 

7 Grant for each of such 3 succeeding aca8 demic years. 

9 ‘‘(D) FAILURE TO IMPROVE.— 

10 ‘‘(i) IN GENERAL.—Except as pro11 vided in clause (ii), if an institution of 

12 higher education has an average percent13 age determined under subparagraph (C)(ii) 

14 that is less than the threshold mark de15 scribed in paragraph (2)(B)(ii) for the aca16 demic year for which the institution was 

17 included in the report under subparagraph 

18 (A)(ii) that triggered such determination, 

19 the Secretary shall impose on such institu20 tion a penalty described in subparagraph 

21 (E). 

22 ‘‘(ii) DELAY OF PENALTY.— 

23 ‘‘(I) IN GENERAL.—The Sec24 retary may delay imposing a penalty 

25 described in subparagraph (E) with 


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1 respect to an institution that has an 

2 average percentage determined under 

3 subparagraph (C)(ii) that is less than 

4 the threshold mark described in para5 graph (2)(B)(ii) for the academic year 

6 for which the institution was included 

7 in the report under subparagraph 

8 (A)(ii) that triggered such determina9 tion, but whose percentage determined 

10 for the most recent academic year is 

11 at or above such threshold mark. 

12 ‘‘(II) PERIOD OF DELAY.—The 

13 Secretary may delay imposing a pen14 alty under subclause (I) for a period 

15 of not more than 2 years. 

16 ‘‘(III) NEW 3-YEAR AVERAGE.— 

17 With respect to an institution for 

18 which the Secretary delays imposing a 

19 penalty under this clause for a period 

20 of not more than 2 years, the Sec21 retary, at the end of such delay pe22 riod, shall determine the average per23 centage over the 3 preceding years of 

24 bachelor’s degree-seeking students 

25 who enrolled at the institution for the 


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1 first time in a full-time capacity for 

2 each of such 3 preceding academic 

3 years and who received a Federal Pell 

4 Grant for each of such 3 preceding 

5 academic years. If the institution has 

6 an average percentage that is less 

7 than the threshold mark described in 

8 paragraph (2)(B)(ii) for the academic 

9 year for which the institution was in10 cluded in the report under subpara11 graph (A)(ii) that triggered such de12 termination, the Secretary shall im13 pose on such institution a penalty de14 scribed in subparagraph (E). 

15 ‘‘(E) PENALTIES.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall impose a penalty under this para18 graph in an amount determined under this 

19 subparagraph. 

20 ‘‘(ii) AMOUNT OF PENALTY.— 

21 ‘‘(I) IN GENERAL.—The penalty 

22 to be imposed under this subpara23 graph with respect to an institution 

24 shall be a fee-per-student penalty, in 

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1 dents determined with respect to such 

2 institution under subclause (II) for an 

3 academic year is multiplied by the in4 stitution’s average student-related ex5 penditure for the academic year. 

6 ‘‘(II) NUMBER OF ADDITIONAL

7 STUDENTS TO BE DETERMINED.— 

8 With respect to an institution of high9 er education that is subject to the 

10 penalty under this subparagraph, the 

11 Secretary shall determine the number 

12 of additional students the institution 

13 would need to enroll as Federal Pell 

14 Grant recipients to meet the threshold 

15 mark described in paragraph 

16 (2)(B)(ii). Such number shall be cal17 culated by determining the percentage 

18 equal to subtracting the average per19 centage determined under subpara20 graph (C)(ii) from the threshold mark 

21 described in paragraph (2)(B)(ii) for 

22 the academic year for which the insti23 tution was included in the report 

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1 plying such determined percentage by 

2 the average number of bachelor’s de3 gree-seeking students who enrolled at 

4 the institution for the first time in a 

5 full-time capacity for an academic 

6 year over the 3 preceding academic 

7 years. 

8 ‘‘(iii) COLLECTION OF PENALTY

9 FEES.—The Secretary shall— 

10 ‘‘(I) collect penalty fees imposed 

11 under this paragraph not later than 1 

12 year after such penalty is imposed; 

13 and 

14 ‘‘(II) use the fees collected under 

15 subclause (I) to fund the completion 

16 improvement program under sub17 section (d) and the completion bonus 

18 program under subsection (e). 

19 ‘‘(iv) PROHIBITION ON USE OF INSTI20 TUTIONAL NEED-BASED GRANT AID TO PAY

21 FEES.—An institution of higher education 

22 that is subject to a penalty under this 

23 paragraph may not, in order to pay such 

24 penalty fee— 


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1 ‘‘(I) reduce the amount of insti2 tutional need-based grant aid awarded 

3 to students to attend the institution; 

4 or 

5 ‘‘(II) increase tuition or fees. 

6 ‘‘(F) APPEALS.— 

7 ‘‘(i) IN GENERAL.—An institution of 

8 higher education that is subject to a pen9 alty under this paragraph may appeal the 

10 decision to impose such penalty or the 

11 amount of the penalty to the Secretary. 

12 ‘‘(ii) CONTENT OF APPEAL.—The ap13 peals process shall permit the institution to 

14 demonstrate, to the satisfaction of the Sec15 retary— 

16 ‘‘(I) that there was a miscalcula17 tion of the penalty amount; or 

18 ‘‘(II) that there is some unfore19 seen and extreme circumstance that 

20 should warrant a waiver from such 

21 penalty or a reduction in the amount 

22 of such penalty. 

23 ‘‘(c) IMPROVING COMPLETION.— 

24 ‘‘(1) IN GENERAL.— 


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1 ‘‘(A) IN GENERAL.—In order for an insti2 tution of higher education to participate in any 

3 student financial assistance program under this 

4 title, the institution shall comply with the im5 proving college completion program under this 

6 subsection. 

7 ‘‘(B) ELECTION BY PUBLIC OR OTHER

8 NONPROFIT INSTITUTIONS.—An institution of 

9 higher education that is a public or other non10 profit institution of higher education may elect 

11 for the Secretary not to impose on such institu12 tion a penalty described in paragraph (3)(E). 

13 An institution that makes such election shall 

14 not be eligible to receive a grant under the com15 pletion improvement program under subsection 

16 (d) or the completion bonus program under 

17 subsection (e). 

18 ‘‘(C) DEFINITION OF INSTITUTION OF

19 HIGHER EDUCATION.—In this subsection, the 

20 term ‘institution of higher education’ means an 

21 institution of higher education (as defined in 

22 section 101(a)) or a proprietary institution of 

23 higher education (as defined in section 

24 102(b))— 


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1 ‘‘(i) that predominately awards more 

2 bachelor’s degrees than associate’s degrees 

3 and certificates; and 

4 ‘‘(ii) that enrolls not less than 30 

5 first-time, full-time bachelor’s degree- or 

6 equivalent-degree-seeking undergraduate 

7 students. 

8 ‘‘(2) CALCULATION OF PERCENTAGES OF COM9 PLETION.— 

10 ‘‘(A) IN GENERAL.—For academic year 

11 2017–2018 and for each succeeding academic 

12 year, the Secretary shall determine, for each in13 stitution of higher education that participates 

14 in any program under this title, the percentage 

15 of first-time, full-time bachelor’s degree-seeking 

16 students who enrolled at the institution who 

17 graduate within 6 years. 

18 ‘‘(B) RANKING.— 

19 ‘‘(i) IN GENERAL.—For academic year 

20 2017–2018 and for each succeeding aca21 demic year, the Secretary shall rank the 

22 institutions according to the percentages 

23 determined under subparagraph (A). 

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1 ceeding academic year, the Secretary shall 

2 determine, based on the rankings under 

3 clause (i), the percentage, determined 

4 under subparagraph (A), at which and 

5 above which marks the top 95 percent of 

6 the institutions ranked. 

7 ‘‘(iii) RANKINGS FOR PEER GROUPS

8 OF INSTITUTIONS.— 

9 ‘‘(I) IN GENERAL.—For academic 

10 year 2017–2018 and for each suc11 ceeding academic year, the Secretary 

12 shall rank the institutions according 

13 to the percentages determined under 

14 subparagraph (A) in each peer group 

15 of institutions described in subclause 

16 (II). 

17 ‘‘(II) PEER GROUPS.—For aca18 demic year 2017–2018 and for each 

19 succeeding academic year, the Sec20 retary shall establish peer groups of 

21 institutions. Each peer group shall in22 clude approximately 10 to 15 institu23 tions that are included in such group 

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1 teristics. Such characteristics shall in2 clude the following: 

3 ‘‘(aa) The percentage of 

4 first-time, full-time students en5 rolled at the institution who re6 ceive a Federal Pell Grant. 

7 ‘‘(bb) The average SAT or 

8 ACT score of first-time, full-time 

9 students enrolled at the institu10 tion. 

11 ‘‘(cc) The average high 

12 school GPA of first-time, full13 time students enrolled at the in14 stitution. 

15 ‘‘(dd) The institution’s aver16 age student-related expenditure. 

17 ‘‘(ee) Other characteristics 

18 that the Secretary determines are 

19 appropriate. 

20 ‘‘(C) FLOOR REACHED.— 

21 ‘‘(i) FLOOR MARK.—For academic 

22 year 2017–2018, the Secretary shall deter23 mine, based on the rankings under sub24 paragraph (B)(i) for such academic year, 

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1 graph (A), at which and above which 

2 marks the top 90 percent of those institu3 tions ranked. 

4 ‘‘(ii) COMPARISON OF THRESHOLD

5 MARK TO FLOOR MARK.—If the threshold 

6 mark determined under subparagraph 

7 (B)(ii) for an academic year is at or above 

8 the floor mark determined under clause (i), 

9 no institution shall be subject to the provi10 sions of paragraph (3) for such academic 

11 year. 

12 ‘‘(iii) CONSUMER WARNINGS.—If the 

13 threshold mark determined under subpara14 graph (B)(ii) for an academic year is at or 

15 above the floor mark determined under 

16 clause (i)— 

17 ‘‘(I) each institution with a per18 centage determined under subpara19 graph (A) that is less than the floor 

20 mark shall publish a consumer warn21 ing in a prominent place on the home22 page of the institution’s website of the 

23 percentage of first-time, full-time 

24 bachelor’s degree-seeking students 

25 who enrolled at the institution who 


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1 graduate within 6 years for such aca2 demic year and at the beginning of 

3 each subsequent academic year 

4 until— 

5 ‘‘(aa) the institution has a 

6 percentage determined under 

7 subparagraph (A) that is at or 

8 above the floor mark; or 

9 ‘‘(bb) the threshold mark 

10 determined under subparagraph 

11 (B) is less than the floor mark; 

12 and 

13 ‘‘(II) the Secretary shall issue a 

14 report that lists each institution de15 scribed in subclause (I) along with the 

16 percentage of first-time, full-time 

17 bachelor’s degree-seeking students 

18 who enrolled at the institution who 

19 graduate within 6 years for such aca20 demic year. 

21 ‘‘(3) CONSEQUENCES OF LOW RANKING.— 

22 ‘‘(A) IN GENERAL.— 

23 ‘‘(i) IN GENERAL.—Subject to para24 graph (2)(C)(ii), for academic year 2017– 

25 2018 and for each succeeding academic 


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1 year, the Secretary shall notify each insti2 tution of higher education that is in the 

3 bottom 5 percent of those institutions 

4 ranked under paragraph (2)(B)(i)— 

5 ‘‘(I) that the institution is in 

6 such bottom 5 percent of those insti7 tutions ranked and whether the insti8 tution is in the top two-thirds of insti9 tutions ranked in the institution’s 

10 peer group described in paragraph 

11 (2)(B)(iii) for the academic year; 

12 ‘‘(II) of the applicable threshold 

13 mark described in paragraph 

14 (2)(B)(ii) that such institution must 

15 meet or rise above; and 

16 ‘‘(III) that the institution has 90 

17 days to appeal to the Secretary to be 

18 removed from the bottom 5 percent of 

19 those institutions ranked. 

20 ‘‘(ii) APPEAL.—An institution of high21 er education that is in the bottom 5 per22 cent of those institutions ranked under 

23 paragraph (2)(B)(i) for an academic year 

24 may appeal to the Secretary, within 90 

25 days of the notification under clause (i), to 


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1 be removed from such bottom 5 percent 

2 ranking if— 

3 ‘‘(I) the Secretary’s calculation of 

4 its ranking is not accurate, and that 

5 recalculation of such ranking would 

6 raise the ranking of the institution 

7 above the bottom 5 percent of those 

8 institutions ranked; 

9 ‘‘(II) the institution’s average 

10 percentage for the academic year and 

11 the 2 preceding academic years of 

12 first-time, full-time bachelor’s degree13 seeking students who enrolled at the 

14 institution who graduate within 6 

15 years is at or above the threshold 

16 mark described in paragraph 

17 (2)(B)(ii) for the academic year; or 

18 ‘‘(III) the institution is in the top 

19 two-thirds of institutions ranked in 

20 the institution’s peer group described 

21 in paragraph (2)(B)(iii) for the aca22 demic year. 

23 ‘‘(iii) CONSUMER WARNING REPORT

24 BY THE SECRETARY.—For academic year 

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1 demic year, the Secretary shall issue a re2 port, following resolution of all appeals 

3 brought pursuant to the 90-day appeal pe4 riod, listing each institution of higher edu5 cation that is in the bottom 5 percent of 

6 those institutions ranked under paragraph 

7 (2)(B)(i), and not removed from such 

8 ranking in accordance with clause (ii), 

9 along with the percentage of first-time, 

10 full-time bachelor’s degree-seeking students 

11 who enrolled at each such institution who 

12 graduate within 6 years. 

13 ‘‘(B) PLAN AND CONSUMER WARNINGS.— 

14 For academic year 2017–2018 and for each 

15 fifth succeeding academic year, an institution of 

16 higher education that is included in the report 

17 under subparagraph (A)(iii) shall— 

18 ‘‘(i) develop a plan, not later than 1 

19 year after the date of the notification 

20 under subparagraph (A)(i) and in con21 sultation with the Secretary, to meet or 

22 rise above the threshold mark described in 

23 paragraph (2)(B)(ii); and 


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1 ‘‘(ii) publish a consumer warning in a 

2 prominent place on the homepage of the 

3 institution’s website to students— 

4 ‘‘(I) of such notification at the 

5 beginning of each academic year until 

6 the institution is no longer in the bot7 tom 5 percent of those institutions 

8 ranked under paragraph (2)(B)(i); 

9 and 

10 ‘‘(II) that if the institution is 

11 subject to a penalty under this para12 graph, an undergraduate student who 

13 enrolls at such institution for the first 

14 time after the date the institution is 

15 subject to such penalty may lose eligi16 bility to receive assistance for attend17 ance at that institution under any 

18 program under this title. 

19 ‘‘(C) CALCULATION OF AVERAGE.— 

20 ‘‘(i) IN GENERAL.—For academic year 

21 2017–2018 and for each fifth succeeding 

22 academic year, for each institution of high23 er education that is included in the report 

24 under subparagraph (A)(iii) for an aca25 demic year, the Secretary shall— 


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1 ‘‘(I) grant the institution a hold 

2 harmless year for the academic year 

3 succeeding the academic year for 

4 which the institution receives notifica5 tion under subparagraph (A)(i); and 

6 ‘‘(II) determine the average per7 centage over the 4 succeeding aca8 demic years (as determined under 

9 clause (ii)) following the hold harm10 less academic year described in clause 

11 (i) of first-time, full-time bachelor’s 

12 degree-seeking students who enrolled 

13 at the institution who graduate within 

14 6 years. 

15 ‘‘(ii) UNDER-RESOURCED YEARS.—In 

16 determining the 4 succeeding academic 

17 years under clause (i)(II), the Secretary 

18 shall skip any academic year that succeeds 

19 an academic year for which less than 

20 $25,000,000 is collected under subsection 

21 (b)(3)(E). 

22 ‘‘(D) FAILURE TO IMPROVE.— 

23 ‘‘(i) IN GENERAL.—Except as pro24 vided in clause (ii) or paragraph (1)(B), if 

25 an institution of higher education has an 


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1 average percentage determined under sub2 paragraph (C)(i)(II) that is less than the 

3 applicable threshold mark described in 

4 paragraph (2)(B)(ii), the Secretary shall 

5 impose on such institution a penalty de6 scribed in subparagraph (E). 

7 ‘‘(ii) DELAY OF PENALTY.— 

8 ‘‘(I) IN GENERAL.—The Sec9 retary may delay imposing a penalty 

10 described in subparagraph (E) with 

11 respect to an institution that has an 

12 average percentage determined under 

13 subparagraph (C)(i)(II) that is less 

14 than the applicable threshold mark 

15 described in paragraph (2)(B)(ii), but 

16 whose percentage determined for the 

17 most recent academic year is at or 

18 above such threshold mark. 

19 ‘‘(II) PERIOD OF DELAY.—The 

20 Secretary may delay imposing a pen21 alty under subclause (I) for a period 

22 of not more than 2 years. 

23 ‘‘(III) NEW AVERAGE.—With re24 spect to an institution for which the 

25 Secretary delays imposing a penalty 


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1 under this clause for a period of not 

2 more than 2 years, the Secretary, at 

3 the end of such delay period, shall de4 termine the average percentage over 

5 the 4 preceding years of first-time, 

6 full-time bachelor’s degree-seeking 

7 students who enrolled at the institu8 tion who graduate within 6 years. If 

9 the institution has an average per10 centage that is less than the threshold 

11 mark described in paragraph 

12 (2)(B)(ii), the Secretary shall impose 

13 on such institution a penalty described 

14 in subparagraph (E). 

15 ‘‘(E) PENALTIES.— 

16 ‘‘(i) FIRST PENALTY YEAR.—Begin17 ning with the fifth academic year after 

18 which penalty fees are collected under sub19 section (b)(3)(E), an institution of higher 

20 education that is subject to a penalty 

21 under this paragraph shall pay to the Sec22 retary for an academic year an amount 

23 equal to 25 percent of the total amount of 

24 funds made available under subsection (d) 

25 to the institution during the 4 academic 


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1 years preceding the academic year for 

2 which the penalty is due under this para3 graph. The Secretary shall use such pen4 alty fees to fund the completion improve5 ment program under subsection (d) and 

6 the completion bonus program under sub7 section (e). 

8 ‘‘(ii) SECOND PENALTY YEAR.—One 

9 year after the first academic year for 

10 which an institution of higher education is 

11 subject to a penalty under this paragraph, 

12 the Secretary shall determine the average 

13 percentage for such year after such first 

14 academic year and the 3 preceding aca15 demic years of first-time, full-time bach16 elor’s degree-seeking students who enrolled 

17 at the institution who graduate within 6 

18 years. If such average percentage is less 

19 than the threshold mark described in para20 graph (2)(B)(ii) for such year after such 

21 first academic year, the institution of high22 er education shall pay to the Secretary for 

23 such year after such first academic year an 

24 amount equal to 50 percent of the total 

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1 section (d) to the institution during the 5 

2 academic years preceding the academic 

3 year for which the penalty is due under 

4 this clause. The Secretary shall use such 

5 penalty fees to fund the completion im6 provement program under subsection (d) 

7 and the completion bonus program under 

8 subsection (e). 

9 ‘‘(iii) THIRD PENALTY YEAR.— 

10 ‘‘(I) DETERMINATION.—Two 

11 years after the first academic year for 

12 which an institution of higher edu13 cation is subject to a penalty under 

14 this paragraph, the Secretary shall de15 termine the average percentage for 

16 such second year after such first aca17 demic year and the 3 preceding aca18 demic years of first-time, full-time 

19 bachelor’s degree-seeking students 

20 who enrolled at the institution who 

21 graduate within 6 years. 

22 ‘‘(II) INELIGIBILITY.—If the av23 erage percentage determined under 

24 subclause (I) is less than the thresh25 old mark described in paragraph 


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1 (2)(B)(ii) for such second year after 

2 such first academic year any under3 graduate student who enrolls at the 

4 institution of higher education for the 

5 first time during the 3-year period 

6 that begins 2 years after the date the 

7 institution is subject to a penalty 

8 under this paragraph shall lose eligi9 bility to receive assistance for attend10 ance at such institution under any 

11 program under this title during such 

12 3-year period. 

13 ‘‘(iv) PROHIBITIONS.—An institution 

14 of higher education that is subject to a 

15 penalty under this subparagraph— 

16 ‘‘(I) shall ensure that students 

17 enrolled at the institution receive the 

18 full amount of funding under this title 

19 they would otherwise have received 

20 had the institution not been subject to 

21 such penalty; and 

22 ‘‘(II) may not, in order to pay for 

23 the penalty fee— 

24 ‘‘(aa) reduce the amount of 

25 institutional need-based grant aid 


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1 awarded to students to attend 

2 the institution; and 

3 ‘‘(bb) raise tuition or fees. 

4 ‘‘(v) WAIVER.—The Secretary may 

5 waive or reduce a penalty under this sub6 paragraph if the Secretary determines such 

7 a waiver is necessary to avoid extreme 

8 hardship for the students enrolled at the 

9 institution of higher education on which 

10 the penalty would be imposed. 

11 ‘‘(vi) PAYMENT PLAN.—The Secretary 

12 may allow an institution of higher edu13 cation that owes a penalty under this sub14 paragraph to enter into a payment plan to 

15 pay such penalty amount. 

16 ‘‘(F) APPEALS.— 

17 ‘‘(i) IN GENERAL.—An institution of 

18 higher education that is subject to a pen19 alty under this paragraph may appeal the 

20 decision to impose such penalty to the Sec21 retary. 

22 ‘‘(ii) CONTENT OF APPEAL.—The ap23 peals process shall permit the institution to 

24 demonstrate, to the satisfaction of the Sec25 retary that there is some unforeseen and 


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1 extreme circumstance that should warrant 

2 a waiver from such penalty, a reduction in 

3 the amount of such penalty, or removal of 

4 the institution from the bottom 5 percent 

5 of those institutions ranked under para6 graph (2)(B). 

7 ‘‘(G) CONSUMER WARNING BY THE SEC8 RETARY.—For academic year 2017–2018 and 

9 for each succeeding academic year, the Sec10 retary shall issue a report listing each institu11 tion of higher education that is in the bottom 

12 5 percent of those institutions ranked under 

13 paragraph (2)(B) for such academic year and, 

14 for each such institution, the percentage of 

15 first-time, full-time bachelor’s degree-seeking 

16 students who enrolled at the institution who 

17 graduate within 6 years, for such academic 

18 year. 

19 ‘‘(d) COMPLETION IMPROVEMENT PROGRAM.— 

20 ‘‘(1) IN GENERAL.—From funds available 

21 under paragraph (5), the Secretary shall establish a 

22 completion improvement program to award grants to 

23 eligible institutions of higher education to support 

24 reforms to improve completion rates. 


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1 ‘‘(2) ELIGIBLE INSTITUTIONS.—An institution 

2 of higher education is eligible to receive a grant 

3 under this subsection if the institution— 

4 ‘‘(A) is a public or other nonprofit institu5 tion of higher education that is in the bottom 

6 5 percent of those institutions ranked under 

7 subsection (c)(2)(B); and 

8 ‘‘(B) has not elected to be exempt under 

9 subsection (c)(1)(B). 

10 ‘‘(3) DETERMINATION OF GRANT AMOUNT.— 

11 ‘‘(A) IN GENERAL.—In awarding grants 

12 under this subsection, the Secretary shall deter13 mine a grant amount for each eligible institu14 tion according to the formula under subpara15 graph (B). 

16 ‘‘(B) GRANT AMOUNT FORMULA.— 

17 ‘‘(i) IN GENERAL.—Except as pro18 vided in clause (iii), the grant amount for 

19 an eligible institution described in para20 graph (2) for a fiscal year shall be equal 

21 to the Pell weight of such institution for 

22 the fiscal year, determined under clause 

23 (ii), multiplied by the amount available 

24 under paragraph (5) for such fiscal year. 

25 ‘‘(ii) PELL WEIGHT.— 


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1 ‘‘(I) IN GENERAL.—The Pell 

2 weight of an eligible institution for a 

3 fiscal year shall be equal to a percent4 age that is determined by dividing the 

5 institution’s Pell enrollment deter6 mined under subclause (II) for the fis7 cal year by the total Pell enrollment 

8 determined under subclause (III) for 

9 the fiscal year. 

10 ‘‘(II) INSTITUTION’S PELL EN11 ROLLMENT.—An eligible institution’s 

12 Pell enrollment for a fiscal year shall 

13 be equal to the percentage of bach14 elor’s degree-seeking students enrolled 

15 at the institution for the academic 

16 year that ended immediately pre17 ceding such fiscal year who received a 

18 Federal Pell Grant for such academic 

19 year. 

20 ‘‘(III) TOTAL PELL ENROLL21 MENT.—The total Pell enrollment for 

22 a fiscal year shall be equal to the sum 

23 of the percentages of bachelor’s de24 gree-seeking students enrolled at each 

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1 graph (2), for the academic year that 

2 ended immediately preceding such fis3 cal year who received a Federal Pell 

4 Grant for such academic year. 

5 ‘‘(iii) MAXIMUM GRANT AMOUNT.— 

6 The maximum grant amount for an eligible 

7 institution described in paragraph (2) for a 

8 fiscal year shall be $2,000,000. Any 

9 amounts available under paragraph (5) for 

10 such fiscal year that are remaining after 

11 awarding grants in accordance with this 

12 subparagraph shall be used to carry out 

13 the completion bonus program under sub14 section (e). 

15 ‘‘(4) USE OF FUNDS.—An institution of higher 

16 education that receives a grant under this subsection 

17 shall use the grant funds for reforms and practices 

18 that are part of the improvement plan of the institu19 tion, as described under subsection (c)(3)(B)(i), 

20 which may include the following: 

21 ‘‘(A) Increasing funds available for Federal 

22 Work-Study Programs for undergraduate stu23 dents. 


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1 ‘‘(B) Increasing need-based institutional 

2 aid to students who are eligible for Federal Pell 

3 Grants. 

4 ‘‘(C) Enhancing academic advising and 

5 student support services. 

6 ‘‘(D) Expanding accelerated learning op7 portunities. 

8 ‘‘(E) Improving remedial course offerings. 

9 ‘‘(F) Data- and technology-driven efforts 

10 to increase college completion rates. 

11 ‘‘(G) Enhancing regular and proactive ca12 reer advising and loan counseling services, in13 cluding post-enrollment services. 

14 ‘‘(H) Efforts to close completion gaps— 

15 ‘‘(i) between non-low-income or work16 ing class students and low-income or work17 ing class students; and 

18 ‘‘(ii) between non-underrepresented 

19 minority students and underrepresented 

20 minority students. 

21 ‘‘(5) AVAILABLE FUNDS.—Funds shall be avail22 able to carry out this subsection only from the pen23 alty fees collected under subsections (b)(3)(E) and 

24 (c)(3)(E). 

25 ‘‘(e) COMPLETION BONUS PROGRAM.— 


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1 ‘‘(1) IN GENERAL.—From funds available 

2 under paragraph (5), the Secretary shall establish a 

3 completion bonus program to award grants on a 

4 competitive basis to eligible institutions of higher 

5 education to support reforms to improve completion 

6 rates. 

7 ‘‘(2) ELIGIBLE INSTITUTIONS.—An institution 

8 of higher education is eligible to receive a grant 

9 under this subsection if the institution is not in the 

10 bottom 5 percent of those institutions ranked under 

11 subsection (c)(2)(B). 

12 ‘‘(3) APPLICATION AND PRIORITY.— 

13 ‘‘(A) APPLICATION.—An eligible institution 

14 that desires a grant under this subsection shall 

15 submit an application to the Secretary at such 

16 time, in such manner, and containing such in17 formation as the Secretary may require. 

18 ‘‘(B) PRIORITY.—In awarding grants 

19 under this subsection, the Secretary shall give 

20 priority to an eligible institution that is a part 

21 B institution (as defined in section 322) or a 

22 minority-serving institution (as described in sec23 tion 371(a)). 

24 ‘‘(4) USE OF FUNDS.—An eligible institution 

25 that receives a grant under this subsection shall use 


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1 the grant funds for reforms and practices to improve 

2 completion rates, which may include the following: 

3 ‘‘(A) Increasing funds available for Federal 

4 Work-Study Programs for undergraduate stu5 dents. 

6 ‘‘(B) Increasing need-based institutional 

7 aid to students who are eligible for Federal Pell 

8 Grants. 

9 ‘‘(C) Enhancing academic advising and 

10 student support services. 

11 ‘‘(D) Expanding accelerated learning op12 portunities. 

13 ‘‘(E) Improving remedial course offerings. 

14 ‘‘(F) Data- and technology-driven efforts 

15 to increase college completion rates. 

16 ‘‘(G) Enhancing regular and proactive ca17 reer advising and loan counseling services, in18 cluding post-enrollment services. 

19 ‘‘(H) Efforts to close completion gaps— 

20 ‘‘(i) between non-low-income or work21 ing class students and low-income or work22 ing class students; and 

23 ‘‘(ii) between non-underrepresented 

24 minority students and underrepresented 

25 minority students. 


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1 ‘‘(5) AVAILABLE FUNDS.—Funds shall be avail2 able to carry out this subsection only from funds 

3 from the penalty fees collected under subsections 

4 (b)(3)(E) and (c)(3)(E) that are remaining after 

5 grants are awarded for the completion improvement 

6 program under subsection (d). 

7 ‘‘(f) NON-FINANCIAL REWARD BONUS PROGRAM.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall award 

9 non-financial rewards to institutions of higher edu10 cation that have a proven record of making college 

11 more affordable and increasing college access and 

12 success for low-income or working class students and 

13 moderate-income students. 

14 ‘‘(2) INSTITUTIONAL ELIGIBILITY.—An institu15 tion of higher education is eligible for a non-finan16 cial reward under this subsection for an academic 

17 year if— 

18 ‘‘(A) the percentage of bachelor’s degree19 seeking students who enrolled at the institution 

20 for the academic year who received a Federal 

21 Pell Grant for such academic year falls within 

22 the top 50 percent of ranked institutions, as de23 termined by the Secretary for the academic 

24 year; 


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1 ‘‘(B) the percentage of first-time, full-time 

2 bachelor’s degree-seeking students who enrolled 

3 at the institution who graduate within 6 years 

4 falls within the top 25 percent of ranked insti5 tutions, as determined by the Secretary for the 

6 academic year; and 

7 ‘‘(C) the institution is not under Federal 

8 investigation for a sanction for an academic or 

9 financial irregularity. 

10 ‘‘(3) APPLICATIONS.—An institution of higher 

11 education that desires to receive a non-financial re12 ward under this subsection shall submit an applica13 tion to the Secretary at such time, in such manner, 

14 and containing such information as the Secretary 

15 may require. 

16 ‘‘(4) PRIORITY.—Priority in awarding non-fi17 nancial rewards under this subsection shall go to in18 stitutions of higher education that have small or di19 minishing gaps in the completion rates— 

20 ‘‘(A) between non-low-income or working 

21 class students and low-income or working class 

22 students; and 

23 ‘‘(B) between non-underrepresented minor24 ity students and underrepresented minority stu25 dents. 


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1 ‘‘(5) NON-FINANCIAL REWARDS.—Non-financial 

2 rewards under this subsection may include the fol3 lowing: 

4 ‘‘(A) Reporting less frequently and avoid5 ing duplicative reporting requirements. 

6 ‘‘(B) Extra points in Department grant 

7 competitions for which institutions of higher 

8 education are eligible entities. 

9 ‘‘(C) Waiving the multiple disbursement 

10 rule or disbursement delays. 

11 ‘‘(D) Preferable status for experimental 

12 sites. 

13 ‘‘(g) BEST PRACTICES.—The Secretary shall estab14 lish a publicly available electronic database identifying 

15 best practices of— 

16 ‘‘(1) institutions of higher education that were 

17 in the bottom 5 percent of those institutions ranked 

18 under the improving college access program under 

19 subsection (b) or the improving college completion 

20 program under subsection (c) for academic year 

21 2017–2018 or for any succeeding academic year and 

22 that have improved their ranking; and 

23 ‘‘(2) eligible institutions of higher education 

24 awarded grants under the completion bonus program 


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1 under subsection (e) to support reforms to improve 

2 completion rates. 

3 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 such sums as may be necessary.’’. 

6 (b) REPORT TO CONGRESS.—Not later than 2 years 

7 after the date of enactment of this Act, the Secretary of 

8 Education shall submit a report to Congress that provides 

9 recommendations on ways to expand section 493E of the 

10 Higher Education Act of 1965, as added by subsection 

11 (a), to institutions with predominantly associate’s degree12 seeking students, as well as other institutions of higher 

13 education not covered by such section. 

Æ 


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