Advancing Competency-Based Education Demonstration Project Act of 2014

To establish a demonstration program for competency-based education. 1. Short title This Act may be cited as the Advancing Competency-Based Education Demonstration Project Act of 2014 2. Competency-based education demonstration projects (a) Projects Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq. 486B. Competency-based education demonstration projects (a) Demonstration projects authorized The Secretary shall select, in accordance with subsection (c), eligible entities to voluntarily carry out competency-based education demonstration projects and receive waivers described in subsection (d) to carry out such projects. (b) Application (1) In general Each eligible entity desiring to carry out a demonstration project under this section shall submit an application to the Secretary, at such time and in such manner as the Secretary may require. (2) Amendments An eligible entity may submit to the Secretary amendments to the eligible entity’s application under paragraph (1), at such time and in such manner as the Secretary may require, which the Secretary shall approve or deny within 15 days of receipt. (3) Contents Each application shall include— (A) a description of the competency-based education to be offered by the eligible entity under the demonstration project; (B) a description of the proposed academic delivery, business, and financial models for the demonstration project, including explanations of how competency-based education offered under the demonstration project would— (i) result in the achievement of competencies; (ii) differ from standard credit hour approaches, in whole or in part; and (iii) result in lower costs or shortened time to degree, certificate, or credential completion; (C) a description of how the competency-based education offered under the demonstration project will progress a student toward completion of a degree, certificate, or credential; (D) a description of how the eligible entity will articulate the transcript from the competency-based education demonstration project to another program within an institution of higher education that is part of the eligible entity or to another institution of higher education; (E) a description of the statutory and regulatory requirements described in subsection (d) for which the eligible entity is seeking a waiver, and why such waiver is necessary to carry out the demonstration project; (F) a description of how the eligible entity will develop and evaluate the competencies and assessments of student knowledge (which may include prior-learning assessments) administered as part of the demonstration project, including how such competencies and assessments are aligned with workforce needs; (G) a description of the proposal for determining a student’s Federal student aid eligibility under this title for participating in the demonstration project, the award and distribution of such aid, and safeguards to ensure that students are making satisfactory progress that warrants disbursement of such aid; (H) a description of the students to whom competency-based education will be offered, including an assurance that the demonstration project will enroll a minimum of 50 and a maximum of 3,000 students; (I) an assurance that students participating in the demonstration project will not be eligible for more Federal assistance under this title than such students would have been eligible for under a traditional program; and (J) an assurance the eligible entity will identify and disseminate best practices with respect to the demonstration project to other eligible entities carrying out a demonstration project under this section. (c) Selection (1) In general Not later than 6 months after the date of enactment of this section, the Secretary shall select not more than 20 eligible entities to carry out a competency-based education demonstration project under this section. (2) Considerations In selecting eligible entities under paragraph (1), the Secretary shall— (A) prioritize projects which show promise in reducing the time or cost required to complete a degree, certificate, or credential; (B) consider the number and quality of applications received; (C) consider an eligible entity’s— (i) ability to successfully execute the demonstration project as described in the eligible entity’s application under subsection (b); (ii) commitment and ability to effectively finance the demonstration project; (iii) ability to provide administrative capability and the expertise to evaluate student progress based on measures other than credit hours or clock hours; and (iv) commitment to work with the Secretary to evaluate the demonstration project and the impact of the demonstration project; (D) ensure the selection of a diverse group of eligible entities with respect to size, mission, and geographic distribution of the eligible entities; (E) not limit the types of programs of study or courses of study approved for participation in a demonstration project; and (F) not select an eligible entity that has had, for 1 of the preceding 2 fiscal years— (i) a cohort default rate (defined in section 435(m)) that is 30 percent or greater; and (ii) a borrowing rate of loans under this title of more than 50 percent of the students enrolled at institutions of higher education of the eligible entity. (d) Waivers The Secretary may waive for any eligible entity selected to carry out a demonstration project under this section any requirements of the following provisions of law (including any regulations promulgated under such provisions) or regulations and for which the eligible entity has provided a reason for waiving under subsection (b)(3)(E): (1) Subparagraphs (A) and (B) of section 102(a)(3). (2) Subsections (a) and (b) of section 481, as such subsections relate to requirements for a minimum number of weeks of instruction. (3) Section 484(l)(1). (4) Section 668.32(a)(1)(iii) (5) Any of the requirements under provisions in title I, part F of this title, or this part, that inhibit the operation of competency-based education, including requirements with respect to— (A) documenting attendance; (B) weekly academic activity; (C) minimum weeks of instructional time; (D) requirements for credit hour or clock hour equivalencies; (E) requirements for substantive interaction with faculty; and (F) definitions of the terms academic year full-time student term standard term non-term non-standard term satisfactory academic progress educational activity project of study payment period (e) Notification Not later than 6 months after the date of enactment of this section, the Secretary shall make available to the authorizing committees and the public a list of eligible entities selected to carry out a demonstration project under this section, which shall include for each such eligible entity— (1) the specific statutory and regulatory requirements being waived under subsection (d); and (2) a description of the competency-based education programs of study or courses of study to be offered under the project. (f) Information and evaluation (1) Information (A) In general Each eligible entity that carries out a demonstration project under this section shall provide to the Director of the Institution of Education Sciences with respect to the students participating in the competency-based education project carried out by the eligible entity the following information: (i) The average number of credit hours the students earned prior to enrollment in the demonstration project, if applicable. (ii) The number and percentage of students participating in the demonstration project that are also enrolled in programs of study or courses of study offered in credit hours or clock hours, disaggregated by student status as a first-year, second-year, third-year, fourth-year, or other student. (iii) The average period of time between the enrollment of a student in the demonstration project and the first assessment of student knowledge of such student. (iv) The average time to 25 percent, 50 percent, 75 percent, and 100 percent of the completion of a degree, certificate, or credential by a student who participated in the demonstration project. (v) The percentage of assessments of student knowledge that students passed on the first attempt, during the period of the participation in the demonstration project by the students. (vi) The percentage of assessments of student knowledge that students passed on the second attempt and the average period of time between the first and second attempts by students, during the period of the participation in the demonstration project by the students. (vii) The average number of competencies a student acquired while participating in the demonstration project and the period of time during which the student acquired such competencies. (viii) Such other information as the Director may reasonably require. (B) Disaggregation Each eligible entity shall provide the information required under subparagraph (A) disaggregated by age, race, gender, disability status, and status as a recipient of a Federal Pell Grant, provided that the disaggregation of the information does not identify any individual student participating in the demonstration project. (2) Evaluation The Director of the Institute of Education Sciences, in consultation with the Secretary, shall annually evaluate each demonstration project under this section. Each evaluation shall include— (A) the extent to which the eligible entity has met the goals set forth in its application to the Secretary; (B) the number and types of students participating in the competency-based education offered under the project, including the progress of participating students toward completion of a degree, certificate, or credential, and the extent to which participation and retention in such project increased; (C) whether the project led to reduced cost or time to completion of a degree, certificate, or credential, and the amount of cost or time reduced for such completion; (D) obstacles related to student financial assistance for competency-based education; (E) the extent to which statutory or regulatory requirements not waived under subsection (d) present difficulties for students or institutions of higher education; (F) degree, certificate, or credential completion rates; (G) retention rates; (H) total cost and net cost to the student of the competency-based education offered under the project; (I) a description of the assessments of student knowledge and the corresponding competencies; and (J) outcomes of the assessments of student knowledge. (3) Annual report The Director of the Institute of Education Sciences shall annually provide to the authorizing committees a report on— (A) the evaluations of the demonstration projects required under paragraph (2) (B) the number and types of students receiving assistance under this title for competency-based education under such projects; (C) the retention and completion rates of students participating in such projects; (D) any proposed statutory or regulatory changes designed to support and enhance the expansion of competency-based education, which may be independent of or combined with traditional credit hour or clock hour projects; (E) the most effective means of delivering competency-based education through demonstration projects; and (F) the appropriate level and distribution methodology of Federal assistance under this title for students enrolled in competency-based education. (g) Oversight In carrying out this section, the Secretary shall, on a continuing basis— (1) assure compliance of eligible entities with the requirements of this title (other than the provisions of law and regulations that are waived under subsection (d)); (2) provide technical assistance; (3) monitor fluctuations in the student population enrolled in the eligible entities carrying out the demonstration projects under this section; and (4) consult with appropriate accrediting agencies or associations and appropriate State regulatory authorities for additional ways of improving the delivery of competency-based education. (h) Definitions For the purpose of this section: (1) Competency-based education The term competency-based education (2) Eligible entity The term eligible entity (A) an institution of higher education; (B) a system of institutions of higher education; or (C) a consortium of institutions of higher education. (3) Institution of higher education The term institution of higher education . (b) Rule of construction Nothing in this Act or the amendments made by this Act shall be construed to alter the authority of the Secretary of Education to establish experimental sites under any other provision of law. (c) Funding (1) Use of existing funds Of the amount authorized to be appropriated for salaries and expenses of the Department of Education, $1,000,000 shall be available to carry out this Act and the amendments made by this Act. (2) No additional funds authorized No funds are authorized to be appropriated by this Act to carry out this Act or the amendments made by this Act. July 17, 2014 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Advancing Competency-Based Education Demonstration Project Act of 2014 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 (HEA) to direct the Secretary of Education to select up to 30 institutions of higher education (IHEs) or systems or consortia of IHEs to: (1) carry out, on a voluntary basis, competency-based education demonstration projects; and (2) receive waivers of certain statutory and regulatory requirements that would otherwise prevent such an entity from participating in federal student aid programs or inhibit the operation of competency-based education. Requires the Secretary to provide outreach regarding such projects to historically Black colleges and universities, Hispanic-serving institutions, Native American-serving, nontribal institutions, IHEs serving special needs students, and rural IHEs. Defines "competency-based education" as an educational process or program that measures students' knowledge, skills, and experience through assessments instead of, or in addition to, measuring their credit or clock hours. Includes in the waivers: (1) limitations on the provision of instruction through correspondence courses, (2) requirements that schools provide a minimum number of weeks of instruction, and (3) requirements that students enroll for at least a minimum number of credit or clock hours. Requires each demonstration project to enroll a minimum of 50 and a maximum of 3,000 students. Requires the Secretary to prioritize proposed demonstration projects that show promise in reducing the time or cost required to complete a degree, certificate, or credential. Prohibits the Secretary from selecting an IHE or a system or consortium of IHEs to conduct a competency-based education demonstration project if such entity had, for one of the two preceding fiscal years: (1) a cohort default rate of 30% or greater, and (2) more than 50% of its students borrowing title IV loans. Requires each entity carrying out a demonstration project to provide the Director of the Institute of Education Sciences with certain disaggregated information regarding the students participating in the project, including the average number of competencies a student acquires while participating in the project and the time it takes the student to acquire such competencies. Requires the Director, annually, to: (1) evaluate each competency-based education demonstration project, and (2) submit a report to Congress that includes information on the evaluations and recommendations for enhancing those projects. Allows a demonstration project that has undergone at least two evaluations by the Director to amend its application to seek the Secretary's approval to increase its student enrollment to up to 5,000 students. Directs the Secretary, on a continuing basis, to: (1) oversee, and provide technical assistance to, the demonstration projects; and (2) consult with accrediting entities and state regulatory authorities for additional ways to improve the delivery of competency-based education. Requires each IHE participating in a demonstration project under this Act to provide its students or the parents of its minor students with: (1) a disclosure letter that describes the personally identifiable student information that may be sold by a person with whom the IHE has an agreement to provide software applications for students, and (2) an option to block the sale of such information. Directs the Secretary to report to Congress every ten years on the needs of limited English proficient students using the Free Application for Federal Student Aid. Makes $1 million of the amount authorized to be appropriated for Department of Education salaries and expenses available to carry out this Act and its amendments. Directs the Secretary to establish the Higher Education Regulatory Reform Task Force, to be composed of: (1) the Secretary or the Secretary's designee, (2) a representative of the Advisory Committee on Student Financial Assistance, and (3) representatives from the higher education community. Requires the Secretary, within six months after this Act's enactment, to submit to Congress and make available on a publicly available website a report prepared by the Task Force on the Department of Education's regulatory requirements for IHEs. Directs the Secretary, in consultation with the Commissioner of Internal Revenue (IRS), to study and report to Congress, within one year after this Act's enactment, on the feasibility and advantages and disadvantages of using individual income tax returns as the primary form of application for student aid under the HEA.