by the Secretary or another Federal agen-
cy. 
‘‘(3) REGULATIONS.—The Secretary shall pre-
scribe regulations to implement the requirements of 
this subsection and periodically provide guidance in 
order to further coordinate actions with the State at-
torneys general. 
‘‘(4) PRESERVATION OF STATE AUTHORITY.— 
‘‘(A) STATE CLAIMS.—Nothing in this sub-
section shall be construed as altering, limiting, 
or affecting the authority of a State attorney 
general or any other regulatory or enforcement 
agency or authority to bring an action or other 
regulatory proceeding arising solely under the 
law in effect in that State. 
‘‘(B) RELIEF.— 
‘‘(i) IN GENERAL.—Relief under this 
subsection may include, without limita-
tion— 
‘‘(I) rescission or reformation of 
contracts; 
‘‘(II) refund of moneys or return 
of real property; 
‘‘(III) restitution; 
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‘‘(IV) disgorgement or compensa-
tion for unjust enrichment; 
‘‘(V) payment of damages or 
other monetary relief; 
‘‘(VI) public notification regard-
ing the violation, including the costs 
of notification; and 
‘‘(VII) limits on the activities or 
functions of the person. 
‘‘(ii) EXCLUSION.—Relief under this 
subsection shall not include the ability to 
suspend or terminate the eligibility status 
of an institution of higher education for 
programs under this title.’’. 
(b) 
PROGRAM
REVIEW
AND
DATA.—Section 
498A(b)(8) of the Higher Education Act of 1965 (20 
U.S.C. 1099c–1(b)(8)) is amended by inserting ‘‘and to 
the applicable State Attorney General if the institution is 
found to have not complied with the program review proc-
ess under this section’’ after ‘‘under review’’. 
SEC. 4. PERSONAL LIABILITY FOR OFFICERS OF INSTITU-
TIONS. 
Section 498(e) of the Higher Education Act of 1965 
(20 U.S.C. 1099c(e)) is amended— 
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(1) in paragraph (4), by striking ‘‘The Sec-
retary’’ and inserting ‘‘Except as provided in para-
graph (7), the Secretary’’; and 
(2) by adding at the end the following: 
‘‘(7) Notwithstanding paragraph (4), if the Secretary 
has taken an enforcement action against a proprietary in-
stitution of higher education (as defined in section 
102(b)), (which may include heightened oversight activi-
ties such as heightened cash monitoring, provisional cer-
tification, or requirements to obtain approval for new edu-
cational programs and locations), the Secretary may hold 
an executive officer of the institution personally liable for 
financial losses related to such action to the Federal Gov-
ernment, student assistance recipients, and other program 
participants for funds under this title.’’. 
SEC. 5. GOVERNMENT CLAIMS FOR DISCHARGE. 
(a) FFEL AND DIRECT LOAN PROGRAMS.—Section 
437(c)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1087(c)(1)) is amended in the first sentence by striking 
‘‘against the institution and its affiliates and principals’’ 
and inserting ‘‘against the institution, its affiliates and 
principals, and any executive officer or board member of 
the institution’’. 
(b) FEDERAL PERKINS LOANS.—Section 464(g)(1) 
of the Higher Education Act of 1965 (20 U.S.C. 
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1087dd(g)(1)) is amended by striking ‘‘against the institu-
tion and the institution’s affiliates and principals’’ and in-
serting ‘‘against the institution, the institution’s affiliates 
and principals, and any executive officer or board member 
of the institution’’. 
SEC. 6. PROGRAM PARTICIPATION AGREEMENT. 
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) In the case of a proprietary institution of 
higher education (as defined in section 102(b)), such 
institution will prohibit any individual who has been 
found guilty of defrauding students from being a 
member of the board of directors, the chief executive 
officer, or other executive officer of the institution.’’. 
Æ 
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