328 
‘‘(iv) develop a protocol for institutions 
to review the status of their fire safety sys-
tems. 
‘‘(5) RULES OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to— 
‘‘(A) authorize the Secretary to require par-
ticular policies, procedures, programs, or prac-
tices by institutions of higher education with re-
spect to fire safety, other than with respect to the 
collection, reporting, and dissemination of infor-
mation required by this subsection; 
‘‘(B) affect the Family Educational Rights 
and Privacy Act of 1974 or the regulations 
issued under section 264 of the Health Insurance 
Portability and Accountability Act of 1996 (42 
U.S.C. 1320d–2 note); 
‘‘(C) create a cause of action against any 
institution of higher education or any employee 
of such an institution for any civil liability; and 
‘‘(D) establish any standard of care. 
‘‘(6) COMPLIANCE REPORT.—The Secretary shall 
annually report to the authorizing committees regard-
ing compliance with this subsection by institutions of 
higher education, including an up-to-date report on 
the Secretary’s monitoring of such compliance.
329 
‘‘(7) EVIDENCE.—Notwithstanding any other 
provision of law, evidence regarding compliance or 
noncompliance with this subsection shall not be ad-
missible as evidence in any proceeding of any court, 
agency, board, or other entity, except with respect to 
an action to enforce this subsection.’’. 
SEC. 478. ENTRANCE COUNSELING REQUIRED. 
Section 485 (as amended by section 477) is further 
amended— 
(1) by redesignating subsections (b) through (i) 
as subsections (c) through (j), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) ENTRANCE COUNSELING FOR BORROWERS.— 
‘‘(1) DISCLOSURE
REQUIRED
PRIOR
TO
DIS-
BURSEMENT.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall, at or prior to the time of a disburse-
ment to a first-time student borrower of a loan 
made, insured, or guaranteed under part B or D, 
ensure that the borrower receives comprehensive 
information on the terms and conditions of the 
loan and the responsibilities the borrower has 
with respect to such loan. Such information shall
330 
be provided in simple and understandable terms 
and may be provided— 
‘‘(i) during an entrance counseling ses-
sion conducted in person; 
‘‘(ii) on a separate written form pro-
vided to the borrower that the borrower 
signs and returns to the institution; or 
‘‘(iii) online, with the borrower ac-
knowledging receipt and understanding of 
the information. 
‘‘(B) USE
OF
INTERACTIVE
PROGRAMS.— 
The Secretary shall encourage institutions to 
carry out the requirements of subparagraph (A) 
through the use of interactive programs that test 
the borrowers’ understanding of the terms and 
conditions of the borrowers’ loans under part B 
or D, using comprehensible language and dis-
plays with clear formatting. 
‘‘(2) INFORMATION TO BE PROVIDED.—The infor-
mation provided to the borrower under paragraph 
(1)(A) shall include— 
‘‘(A) an explanation of the use of the Master 
Promissory Note; 
‘‘(B) in the case of a loan made under sec-
tion 428B or 428H, a Federal Direct PLUS
331 
Loan, or a Federal Direct Unsubsidized Stafford 
Loan— 
‘‘(i) the ability of the borrower to pay 
the interest while the borrower is in school; 
and 
‘‘(ii) how often interest is capitalized; 
‘‘(C) the definition of half-time enrollment 
at the institution, during regular terms and 
summer school, if applicable, and the con-
sequences of not maintaining half-time enroll-
ment; 
‘‘(D) an explanation of the importance of 
contacting the appropriate institutional offices if 
the borrower withdraws prior to completing the 
borrower’s program of study so that the institu-
tion can provide exit counseling, including infor-
mation regarding the borrower’s repayment op-
tions and loan consolidation; 
‘‘(E) the obligation of the borrower to repay 
the full amount of the loan even if the borrower 
does not complete the program in which the bor-
rower is enrolled; 
‘‘(F) information on the National Student 
Loan Data System and how the borrower can 
access the borrower’s records; and
332 
‘‘(G) the name of an individual the bor-
rower may contact if the borrower has any ques-
tions about the borrower’s rights and responsibil-
ities or the terms and conditions of the loan.’’. 
SEC. 479. NATIONAL STUDENT LOAN DATA SYSTEM. 
Section 485B (20 U.S.C. 1092b) is amended— 
(1) in subsection (a)— 
(A) 
by 
redesignating 
paragraphs 
(6) 
through (10) as paragraphs (7) through (11), re-
spectively; 
(B) in paragraph (5) (as added by Public 
Law 101–610), by striking ‘‘effectiveness.’’ and 
inserting ‘‘effectiveness;’’; and 
(C) by redesignating paragraph (5) (as 
added by Public Law 101–234) as paragraph 
(6); 
(2) by redesignating subsections (d) through (g) 
as subsections (e) through (h), respectively; and 
(3) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) PRINCIPLES FOR ADMINISTERING THE DATA SYS-
TEM.—In managing the National Student Loan Data Sys-
tem, the Secretary shall take actions necessary to maintain 
confidence in the data system, including, at a minimum—
333 
‘‘(1) ensuring that the primary purpose of access 
to the data system by guaranty agencies, eligible lend-
ers, and eligible institutions of higher education is for 
legitimate program operations, such as the need to 
verify the eligibility of a student, potential student, or 
parent for loans under part B, D, or E; 
‘‘(2) prohibiting nongovernmental researchers 
and policy analysts from accessing personally identi-
fiable information; 
‘‘(3) creating a disclosure form for students and 
potential students that is distributed when such stu-
dents complete the common financial reporting form 
under section 483, and as a part of the exit coun-
seling process under section 485(b), that— 
‘‘(A) informs the students that any title IV 
grant or loan the students receive will be in-
cluded in the National Student Loan Data Sys-
tem, and instructs the students on how to access 
that information; 
‘‘(B) describes the categories of individuals 
or entities that may access the data relating to 
such grant or loan through the data system, and 
for what purposes access is allowed; 
‘‘(C) defines and explains the categories of 
information included in the data system;
334 
‘‘(D) provides a summary of the provisions 
of the Family Educational Rights and Privacy 
Act of 1974 and other applicable Federal privacy 
statutes, and a statement of the students’ rights 
and responsibilities with respect to such statutes; 
‘‘(E) explains the measures taken by the De-
partment to safeguard the students’ data; and 
‘‘(F) includes other information as deter-
mined appropriate by the Secretary; 
‘‘(4) requiring guaranty agencies, eligible lend-
ers, and eligible institutions of higher education that 
enter into an agreement with a potential student, stu-
dent, or parent of such student regarding a loan 
under part B, D, or E, to inform the student or par-
ent that such loan shall be— 
‘‘(A) submitted to the data system; and 
‘‘(B) accessible to guaranty agencies, eligible 
lenders, and eligible institutions of higher edu-
cation determined by the Secretary to be author-
ized users of the data system; 
‘‘(5) regularly reviewing the data system to— 
‘‘(A) delete inactive users from the data sys-
tem;
337 
‘‘(ii) appropriate protocols for limiting 
access to the data system, based on the risk 
assessment required under subchapter III of 
chapter 35 of title 44, United States Code. 
‘‘(B) SUBMISSION
OF
STUDY.—Not later 
than 3 years after the date of enactment of the 
Higher Education Amendments of 2007, the Sec-
retary shall prepare and submit a report on the 
findings of the study to the appropriate commit-
tees of Congress.’’. 
SEC. 480. EARLY AWARENESS OF FINANCIAL AID ELIGI-
BILITY. 
Part G of title IV (20 U.S.C. 1088 et seq.) is further 
amended by inserting after section 485D (20 U.S.C. 1092c) 
the following: 
‘‘SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGI-
BILITY. 
‘‘(a) IN GENERAL.—The Secretary shall implement, in 
cooperation with States, institutions of higher education, 
secondary schools, middle schools, early intervention and 
outreach programs under this title, other agencies and orga-
nizations involved in student financial assistance and col-
lege access, public libraries, community centers, employers, 
and businesses, a comprehensive system of early financial 
aid information in order to provide students and families
338 
with early information about financial aid and early esti-
mates of such students’ eligibility for financial aid from 
multiple sources. Such system shall include the activities 
described in subsections (b) and (c). 
‘‘(b) COMMUNICATION OF AVAILABILITY OF AID AND 
AID ELIGIBILITY.— 
‘‘(1) STUDENTS WHO RECEIVE BENEFITS.—The 
Secretary shall— 
‘‘(A) make special efforts to notify students, 
who receive or are eligible to receive benefits 
under a Federal means-tested benefit program 
(including the food stamp program under the 
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)) 
or another such benefit program as determined 
by the Secretary, of such students’ potential eli-
gibility for a maximum Federal Pell Grant 
under subpart 1 of part A; and 
‘‘(B) disseminate such informational mate-
rials as the Secretary determines necessary. 
‘‘(2) MIDDLE
SCHOOL
STUDENTS.—The Sec-
retary, in cooperation with States, institutions of 
higher education, other organizations involved in col-
lege access and student financial aid, middle schools, 
and programs under this title that serve middle school 
students, shall make special efforts to notify students
339 
and their parents of the availability of financial aid 
under this title and, in accordance with subsection 
(c), shall provide nonbinding estimates of grant and 
loan aid that an individual may be eligible for under 
this title upon completion of an application form 
under section 483(a). The Secretary shall ensure that 
such information is as accurate as possible and that 
such information is provided in an age-appropriate 
format using dissemination mechanisms suitable for 
students in middle school. 
‘‘(3) SECONDARY SCHOOL STUDENTS.—The Sec-
retary, in cooperation with States, institutions of 
higher education, other organizations involved in col-
lege access and student financial aid, secondary 
schools, and programs under this title that serve sec-
ondary school students, shall make special efforts to 
notify students in secondary school and their parents, 
as early as possible but not later than such students’ 
junior year of secondary school, of the availability of 
financial aid under this title and, in accordance with 
subsection (c), shall provide nonbinding estimates of 
the amounts of grant and loan aid that an individual 
may be eligible for under this title upon completion 
of an application form under section 483(a). The Sec-
retary shall ensure that such information is as accu-
340 
rate as possible and that such information is provided 
in an age-appropriate format using dissemination 
mechanisms suitable for students in secondary school. 
‘‘(4) ADULT LEARNERS.—The Secretary, in co-
operation with States, institutions of higher edu-
cation, other organizations involved in college access 
and student financial aid, employers, workforce in-
vestment boards and public libraries, shall make spe-
cial efforts to provide individuals who would qualify 
as independent students, as defined in section 480(d), 
with information regarding the availability of finan-
cial aid under this title and, in accordance with sub-
section (c), with nonbinding estimates of the amounts 
of grant and loan aid that an individual may be eli-
gible for under this title upon completion of an appli-
cation form under section 483(a). The Secretary shall 
ensure that such information— 
‘‘(A) is as accurate as possible; 
‘‘(B) includes specific information regard-
ing the availability of financial aid for students 
qualified as independent students, as defined in 
section 480(d); and 
‘‘(C) uses dissemination mechanisms suit-
able for adult learners.
341 
‘‘(5) PUBLIC AWARENESS CAMPAIGN.—Not later 
than 2 years after the date of enactment of the Higher 
Education Amendments of 2007, the Secretary, in co-
ordination with States, institutions of higher edu-
cation, early intervention and outreach programs 
under this title, other agencies and organizations in-
volved in student financial aid, local educational 
agencies, public libraries, community centers, busi-
nesses, employers, employment services, workforce in-
vestment boards, and movie theaters, shall implement 
a public awareness campaign in order to increase na-
tional awareness regarding the availability of finan-
cial aid under this title. The public awareness cam-
paign shall disseminate accurate information regard-
ing the availability of financial aid under this title 
and shall be implemented, to the extent practicable, 
using a variety of media, including print, television, 
radio and the Internet. The Secretary shall design 
and implement the public awareness campaign based 
upon relevant independent research and the informa-
tion and dissemination strategies found most effective 
in implementing paragraphs (1) through (4). 
‘‘(c) AVAILABILITY
OF NONBINDING ESTIMATES
OF 
FEDERAL FINANCIAL AID ELIGIBILITY.—
342 
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with States, institutions of higher education, and 
other agencies and organizations involved in student 
financial aid, shall provide, via a printed form and 
the Internet or other electronic means, the capability 
for individuals to determine easily, by entering rel-
evant data, nonbinding estimates of amounts of grant 
and loan aid an individual may be eligible for under 
this title upon completion and processing of an appli-
cation and enrollment in an institution of higher edu-
cation. 
‘‘(2) DATA ELEMENTS.—The Secretary, in co-
operation with States, institutions of higher edu-
cation, and other agencies and organizations involved 
in student financial aid, shall determine the data ele-
ments that are necessary to create a simplified form 
that individuals can use to obtain easily nonbinding 
estimates of the amounts of grant and loan aid an in-
dividual may be eligible for under this title. 
‘‘(3) QUALIFICATION TO USE SIMPLIFIED APPLI-
CATION.—The capability provided under this para-
graph shall include the capability to determine wheth-
er the individual is eligible to submit a simplified ap-
plication form under paragraph (2)(B) or (3)(B) of 
section 483(a).’’.
344 
nancial aid office of the institution, or who 
otherwise has responsibilities with respect to 
educational loans or other financial aid of 
the institution, is prohibited from taking 
from any lender any gift or trip worth more 
than nominal value, except for reasonable 
expenses for professional development that 
will improve the efficiency and effectiveness 
of programs under this title and for domes-
tic travel to such professional development. 
‘‘(iii) 
CONTRACTING
ARRANGE-
MENTS.—Any employee who is employed in 
the financial aid office of the institution, or 
who otherwise has responsibilities with re-
spect to educational loans or other financial 
aid of the institution, shall be prohibited 
from entering into any type of consulting 
arrangement or other contract to provide 
services to a lender. 
‘‘(iv) ADVISORY
BOARD
COMPENSA-
TION.—Any employee who is employed in 
the financial aid office of the institution, or 
who otherwise has responsibilities with re-
spect to educational loans or other student 
financial aid of the institution, and who
345 
serves on an advisory board, commission, or 
group established by a lender or group of 
lenders shall be prohibited from receiving 
anything of value from the lender or group 
of lenders, except that the employee may be 
reimbursed for reasonable expenses incurred 
in serving on such advisory board, commis-
sion or group. 
‘‘(v) 
INTERACTION
WITH
BOR-
ROWERS.—The institution will not— 
‘‘(I) for any first-time borrower, 
assign, through award packaging or 
other methods, the borrower’s loan to a 
particular lender; and 
‘‘(II) refuse to certify, or, delay 
certification of, any loan in accordance 
with paragraph (6) based on the bor-
rower’s selection of a particular lender 
or guaranty agency. 
‘‘(B) DESIGNATION.—The institution will 
designate an individual who shall be responsible 
for signing an annual attestation on behalf of 
the institution that the institution agrees to, and 
is in compliance with, the requirements of the 
code of conduct described in this paragraph.
346 
Such individual shall be the chief executive offi-
cer, chief operating officer, chief financial officer, 
or comparable official, of the institution, and 
shall annually submit the signed attestation to 
the Secretary. 
‘‘(C) AVAILABILITY.—The institution will 
make the code of conduct widely available to the 
institution’s faculty members, students, and par-
ents through a variety of means, including the 
institution’s website.’’; 
(C) in paragraph (24) (as redesignated by 
subparagraph (A)), by adding at the end the fol-
lowing: 
‘‘(D) In the case of a proprietary institu-
tion of higher education as defined in section 
102(b), the institution shall be considered in 
compliance with the requirements of subpara-
graph (A) for any student to whom the institu-
tion electronically transmits a message con-
taining a voter registration form acceptable for 
use in the State in which the institution is lo-
cated, or an Internet address where such a form 
can be downloaded, if such information is in an 
electronic message devoted solely to voter reg-
istration.’’; and
347 
(D) by adding at the end the following: 
‘‘(25) In the case of a proprietary institution of 
higher education as defined in section 102(b), the in-
stitution will, as calculated in accordance with sub-
section (h)(1), have not less than 10 percent of its rev-
enues from sources other than funds provided under 
this title, or will be subject to the sanctions described 
in subsection (h)(2). 
‘‘(26) PREFERRED LENDER LISTS.— 
‘‘(A) IN GENERAL.—In the case of an insti-
tution (including an employee or agent of an in-
stitution) that maintains a preferred lender list, 
in print or any other medium, through which the 
institution recommends one or more specific 
lenders for loans made under part B to the stu-
dents attending the institution (or the parents of 
such students), the institution will— 
‘‘(i) clearly and fully disclose on the 
preferred lender list— 
‘‘(I) why the institution has in-
cluded each lender as a preferred lend-
er, especially with respect to terms and 
conditions favorable to the borrower; 
and
348 
‘‘(II) that the students attending 
the institution (or the parents of such 
students) do not have to borrow from a 
lender on the preferred lender list; 
‘‘(ii) ensure, through the use of the list 
provided by the Secretary under subpara-
graph (C), that— 
‘‘(I) there are not less than 3 lend-
ers named on the preferred lending list 
that are not affiliates of each other; 
and 
‘‘(II) the preferred lender list— 
‘‘(aa) specifically indicates, 
for each lender on the list, whether 
the lender is or is not an affiliate 
of each other lender on the list; 
and 
‘‘(bb) if the lender is an affil-
iate of another lender on the list, 
describes the specifics of such af-
filiation; and 
‘‘(iii) establish a process to ensure that 
lenders are placed upon the preferred lender 
list on the basis of the benefits provided to 
borrowers, including —
371 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (6) as paragraphs (5) through (9); 
(C) by inserting after paragraph (1) (as 
amended by subparagraph (A)) the following: 
‘‘(2) ensures that the agency or association’s on- 
site evaluation for accreditation or reaccreditation in-
cludes review of the Federally required information 
the institution or program provides its current and 
prospective students; 
‘‘(3) monitors the growth of programs at institu-
tions that are experiencing significant enrollment 
growth; 
‘‘(4) requires an institution to submit a teach- 
out plan for approval to the accrediting agency upon 
the occurrence of any of the following events: 
‘‘(A) The Department notifies the accred-
iting agency of an action against the institution 
pursuant to section 487(d). 
‘‘(B) The accrediting agency acts to with-
draw, terminate, or suspend the accreditation of 
an institution. 
‘‘(C) The institution notifies the accrediting 
agency that the institution intends to cease oper-
ations.’’;