Protecting Students from Worthless Degrees Act

To provide consumer protections for students. 1. Short title This Act may be cited as the Protecting Students from Worthless Degrees Act 2. Consumer protections for students (a) Definitions In this section: (1) Federal financial assistance program The term Federal financial assistance program (A) Title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. (B) Title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 et seq. 29 U.S.C. 2801 et seq. (C) The Adult Education and Family Literacy Act ( 29 U.S.C. 3271 et seq. (D) Chapter 30, 31, 32, 33, 34, or 35 of title 38, United States Code. (E) Chapter 101, 105, 106A, 1606, 1607, or 1608 of title 10, United States Code. (F) Section 1784a, 2005, or 2007 of title 10, United States Code. (2) Institution of higher education The term institution of higher education (A) with respect to a program authorized under paragraph (1)(A), has the meaning given the term in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 (B) with respect to— (i) a program authorized under title I of the Workforce Investment Act of 1998 ( 29 U.S.C. 2801 et seq. postsecondary educational institution 29 U.S.C. 2801 (ii) a program authorized under title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 et seq. 29 U.S.C. 3102 (C) with respect to a program authorized under paragraph (1)(C), has the meaning given the term postsecondary educational institution 29 U.S.C. 3272 (D) with respect to a program authorized under paragraph (1)(D), has the meaning given the term educational institution (E) with respect to a program authorized under paragraph (1)(E), means an educational institution that awards a degree or certificate and is located in any State; and (F) with respect to a program authorized under paragraph (1)(F), means an educational institution that awards a degree or certificate and is located in any State. (3) State (A) State The term State (B) Freely associated States The term freely associated States (b) Consumer protections Notwithstanding any other provision of law, an institution of higher education is not eligible to participate in a Federal financial assistance program with respect to any program of postsecondary education or training, including a degree or certificate program, that is designed to prepare students for entry into a recognized occupation or profession that requires licensing or other established requirements as a pre-condition for entry into such occupation or profession, unless, by not later than 1 year after the date of enactment of this Act— (1) the successful completion of the program fully qualifies a student, in the Metropolitan Statistical Area and State in which the student resides (and in any State in which the institution indicates, through advertising or marketing activities or direct contact with potential students, that a student will be prepared to work in the occupation or profession after successfully completing the program), to— (A) take any examination required for entry into the recognized occupation or profession in the Metropolitan Statistical Area and State in which the student resides, including satisfying all Federal, State, or professionally mandated programmatic and specialized accreditation requirements, if any; and (B) be certified or licensed or meet any other academically related pre-conditions that are required for entry into the recognized occupation or profession in the State; and (2) the institution offering the program provides timely placement for all of the academically related pre-licensure requirements for entry into the recognized occupation or profession, such as clinical placements, internships, or apprenticeships. (c) Regulations on pre-Accredited programs The Secretary of Education shall promulgate regulations on requirements of an institution of higher education with respect to any program of the institution that is in a pre-accredited status, including limitations on, or requirements of, advertisement of the program to students. Such regulations shall be consistent with the provisions of subsection (b). (d) Loan discharge The Secretary of Education shall promulgate regulations that condition eligibility for an institution of higher education to participate in any Federal financial assistance program on the institution signing with each student enrolled in any program of the institution that is in a pre-accredited status, a loan discharge agreement.

Summary: Protecting Students from Worthless Degrees Act This bill makes any institution of higher education (IHE) postsecondary program designed to prepare students for a recognized occupation or profession requiring licensing or other entry pre-conditions ineligible to participate in a federal financial assistance program, unless it meets specified student consumer protection requirements within one year after this Act's enactment. Each program must: (1) fully prepare students to satisfy those entry pre-conditions in the metropolitan statistical areas and states in which the students reside and in any state the program claims a successful program graduate will be prepared to work in the particular occupation or profession involved; and (2) provide timely placement of students in required pre-licensure positions, such as clinical placements, internships, or apprenticeships. The bill requires the Department of Education to promulgate regulations regarding pre-accredited IHE programs to: (1) impose consumer protection requirements that are consistent with those this Act imposes on accredited programs, and (2) condition an IHE's participation in any federal financial assistance program on the IHE signing a loan discharge agreement with each student who is enrolled in any pre-accredited program.