I 
114TH CONGRESS 
2D SESSION 
H. R. 4808 
To amend the Higher Education Act of 1965 to require students who do 
not complete a program of study to repay Federal Pell Grants. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2016 
Mr. SALMON introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to require 
students who do not complete a program of study to 
repay Federal Pell Grants. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pell for Performance 
Act’’. 
SEC. 2. REPAYMENT FOR FAILURE TO COMPLETE PRO-
GRAM. 
Section 401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a) is amended— 
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(1) in subsection (c), by striking ‘‘The period’’ 
and inserting ‘‘Except as provided in subsection (k), 
the period’’; and 
(2) by adding at the end the following: 
‘‘(k) REPAYMENT FOR FAILURE TO COMPLETE PRO-
GRAM.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), if a recipient of a Federal Pell Grant fails 
to complete the program for which the Federal Pell 
Grant was awarded within the maximum timeframe 
for completion of such program, the sum of the 
amounts of any Federal Pell Grants received by the 
recipient for the program shall— 
‘‘(A) be treated as a Federal Direct Un-
subsidized Stafford Loan under part D; and 
‘‘(B) be subject to repayment, together 
with interest thereon accruing from the date of 
the grant award, in accordance with terms and 
conditions specified by the Secretary. 
‘‘(2) PERIOD FOR COMPLETION.—For purposes 
of this subsection, the term ‘maximum timeframe’, 
used with respect to the completion of an under-
graduate program, has the meaning given such term 
in paragraph (1) or (2) of section 668.34(b) of title 
34, Code of Federal Regulations (as in effect on the 
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date of enactment of this Act), as applicable to such 
program. 
‘‘(3) EXCEPTIONS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply with respect to a student who fails to 
complete a program within the maximum time-
frame for completion of such program— 
‘‘(i) because the student enrolls in an-
other program at an institution of higher 
education— 
‘‘(I) not later than 12 months 
after the date of the student’s last day 
of the previous program; and 
‘‘(II) for which the previous pro-
gram provided substantial prepara-
tion; 
‘‘(ii) in the case of a student who has 
a Federal Pell Grant that is being treated 
as a loan under paragraph (1) and who 
meets the requirements of subparagraph 
(B) of this paragraph, with respect to a 
subsequent Federal Pell Grant for which 
the student is eligible and which is award-
ed beyond such maximum timeframe; or 
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‘‘(iii) due to undue hardship, includ-
ing— 
‘‘(I) active duty military service; 
‘‘(II) the death of a relative of 
the student; 
‘‘(III) the personal injury or ill-
ness of the student; or 
‘‘(IV) other special circumstances 
as determined by the institution. 
‘‘(B) REQUIREMENTS.—In order to qualify 
for the exception under subparagraph (A)(ii) of 
this paragraph, a student shall— 
‘‘(i) have a Federal Pell Grant that is 
being treated as a loan under paragraph 
(1) for which the student has met the loan 
repayment obligations for not less than 6 
months; and 
‘‘(ii) not be an individual described in 
paragraph (4)(B). 
‘‘(4) LOSS OF FEDERAL PELL GRANT ELIGI-
BILITY.— 
‘‘(A) DEFAULT.—An individual who is in 
default of an obligation to repay a Federal Pell 
Grant that is being treated as a loan under 
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paragraph (1) shall be ineligible to receive a 
Federal Pell Grant under this section. 
‘‘(B) SECOND TIME DROPOUT.—An indi-
vidual who has received a Federal Pell Grant 
for enrollment in a program that is being treat-
ed as a loan under paragraph (1), and who 
leaves such program for a second time (other 
than for a reason described in clause (i) or (iii) 
of paragraph (3)(A)), shall be ineligible to re-
ceive a Federal Pell Grant under this section. 
‘‘(5) NOTICE.—The Secretary shall ensure that 
each recipient of a Federal Pell Grant receives notice 
of the terms of this subsection. 
‘‘(6) RECORD.—An institution shall keep a 
record that tracks the progress (including the grad-
uation and default rate) of any student described in 
paragraph (3)(B) who receives a Federal Pell Grant 
for enrollment in a program beyond the maximum 
timeframe for completion of such program.’’. 
Æ 
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