794 
SEC. 4619. COMPLIANCE WITH THE CIVIL RIGHTS ACT OF 
1964. 
Section 487(a) of the Higher Education Act of 1965 
(20 U.S.C. 1094(a)), as amended by the preceding sections, 
is further amended by adding at the end the following: 
‘‘(31) The institution will— 
‘‘(A) designate at least one employee to co-
ordinate compliance with title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d et seq.), in-
cluding any investigation of any complaint al-
leging— 
‘‘(i) noncompliance with such title; 
and 
‘‘(ii) any actions prohibited by such 
title; 
‘‘(B) annually submit a report to the Sec-
retary that includes all complaints described in 
subparagraph (A) with respect to such institu-
tion; 
‘‘(C) make the report under subparagraph 
(B) publicly available on the internet website of 
the institution; and 
‘‘(D) notify students and employees of— 
‘‘(i) the name, office address, and tele-
phone number of each employee designated 
under subparagraph (A); 
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‘‘(ii) the report under subparagraph 
(B); 
‘‘(iii) the enforcement policies of the 
institution with respect to such title; and 
‘‘(iv) the procedure for reporting and 
investigating complaints under such title.’’. 
SEC. 4620. SUBMISSION OF DATA WITH RESPECT TO STU-
DENTS WITH DISABILITIES. 
Section 487(a) of the Higher Education Act of 1965 
(20 U.S.C. 1094(a)), as amended by the preceding sections, 
is further amended by adding at the end the following: 
‘‘(32) The institution will submit, for inclusion 
in the postsecondary student data system established 
under section 132(l), the Integrated Postsecondary 
Education Data System of the Department, or any 
other Federal postsecondary institution data collec-
tion effort, key data related to undergraduate and 
graduate students enrolled at the institution who are 
formally registered as students with disabilities with 
the institution’s office of accessibility, including the 
total number of students with disabilities enrolled, the 
number of students accessing or receiving accommoda-
tion, the percentage of students with disabilities of all 
undergraduate students, and the total number of un-
dergraduate certificates or degrees awarded to stu-
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dents with disabilities. An institution shall not be re-
quired to submit the information described in the pre-
ceding sentence if the number of such students would 
reveal personally identifiable information about an 
individual student.’’. 
SEC. 4621. EDUCATION PROGRAM ON HAZING. 
(a) EDUCATIONAL PROGRAM
ON HAZING.—Section 
487(a) of the Higher Education Act of 1965 (20 U.S.C. 
1094(a)), as amended by the preceding sections, is further 
amended by adding at the end the following: 
‘‘(33) The institution will provide students with 
an educational program on hazing (as that term is 
defined in section 485(f)(6)(A)(vii)), which shall in-
clude information on hazing awareness, hazing pre-
vention, and the institution’s policies on hazing.’’. 
SEC. 4622. CHANGES TO PROGRAM PARTICIPATION AGREE-
MENTS TO STRENGTHEN CONSUMER PROTEC-
TIONS. 
(a) PROHIBITION
ON LOSS
OF ACCESS
TO TRAN-
SCRIPTS FOR LOAN DEFAULT.—Section 487(a) of the High-
er Education Act of 1965 (20 U.S.C. 1094(a)) is further 
amended by adding at the end the following: 
‘‘(34)(A) The institution will not prohibit a stu-
dent from accessing the student’s transcripts, degree 
scrolls, or other certifications of coursework or edu-
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cational attainments at the institution because the 
student is in default on the repayment of a loan 
made, insured, or guaranteed under this title. 
‘‘(B) For purposes of this paragraph, the term 
‘student’ includes former students.’’. 
(b) PROHIBITION
ON LIMITATIONS
ON ABILITY
OF 
STUDENTS TO PURSUE CLAIMS AGAINST CERTAIN INSTI-
TUTIONS OF HIGHER EDUCATION.—Section 487(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1094(a)) is fur-
ther amended by adding at the end the following: 
‘‘(35) No agreement between the institution and 
any student will contain any limitation or restriction 
(including a limitation or restriction on any avail-
able choice of applicable law, a jury trial, or venue) 
on the ability of the student to pursue a claim, indi-
vidually or with others, against an institution in 
court.’’. 
SEC. 4623. MISREPRESENTATION AND SUBSTANTIAL MIS-
REPRESENTATION DEFINED. 
Section 487(c)(3) of the Higher Education Act of 1965 
(20 U.S.C. 1094(c)(3)) is amended— 
(1) 
in 
subparagraph 
(B)(i), 
by 
striking 
‘‘$25,000’’ and inserting ‘‘$60,000’’; and 
(2) by adding at the end the following: 
‘‘(C) In this paragraph: 
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‘‘(i) The term ‘misleading’ means having the 
likelihood or tendency to mislead under the cir-
cumstances. 
‘‘(ii) The term ‘misrepresentation’— 
‘‘(I) means any false, erroneous, or mis-
leading statement an institution, one of its rep-
resentatives, or a third-party servicer (as defined 
in section 481(c)) makes directly or indirectly to 
a student, prospective student or any member of 
the public, or an accrediting agency, a State 
agency, or to the Secretary; and 
‘‘(II) includes any statement that omits in-
formation in such a way as to make the state-
ment false, erroneous, or misleading. 
‘‘(iii) The term ‘statement’ means any commu-
nication made in writing, visually, orally, or through 
other means. 
‘‘(iv) The term ‘substantial misrepresentation’ 
means any misrepresentation on which the person to 
whom such misrepresentation was made could reason-
ably be expected to rely, or has reasonably relied, to 
that person’s detriment.’’. 
SEC. 4624. REVENUE REQUIREMENT. 
(a) AMENDMENTS.—Section 487(d) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1094(d)) is amended— 
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(1) in the subsection heading, by striking ‘‘TITLE 
IV’’ and inserting ‘‘FEDERAL EDUCATION ASSIST-
ANCE FUNDS’’; 
(2) in paragraph (1)— 
(A) in subparagraph (B)(iii)— 
(i) in subclause (II), by striking ‘‘or’’; 
(ii) in subclause (III), by adding ‘‘or’’ 
at the end; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(IV) provides industry-related 
skills training pursuant to a contract 
with an entity that is an independent 
third-party (such as an employer), ex-
cept that revenues from such skills 
training shall not exceed 5 percent of 
the institution’s revenues for the pur-
poses of the calculation under this 
paragraph, if the institution— 
‘‘(aa) does not offer more 
than 50 percent of the institu-
tion’s courses exclusively through 
distance education; 
‘‘(bb) ensures that less than 
50 percent of students enrolled at 
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(A) in the matter preceding subparagraph 
(A), by inserting ‘‘and make publicly available’’ 
after ‘‘committees’’; and 
(B) in subparagraph (A), by striking 
‘‘sources under this title’’ and inserting ‘‘Federal 
education assistance funds’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on July 1, 2022. 
SEC. 4625. TEACH-OUT PLANS. 
Section 487(f)(2) of the Higher Education Act of 1965 
(20 U.S.C. 1094(f)(2)) is amended to read as follows: 
‘‘(2) TEACH-OUT PLAN DEFINED.—In this sub-
section, the term ‘teach-out plan’ means a written 
plan that provides for the equitable treatment of stu-
dents if an institution of higher education ceases to 
operate before all students have completed their pro-
gram of study that— 
‘‘(A) shall include— 
‘‘(i) a process to maintain a complete 
list of such students and the estimated date 
of completion of each such student’s pro-
gram of study; and 
‘‘(ii) a record retention plan that in-
cludes— 
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‘‘(I) a plan to provide each stu-
dent with the transcript of such stu-
dent, at no cost to such student, re-
gardless of whether such student choos-
es to participate in a teach-out or 
transfer; and 
‘‘(II) the policies and procedures 
required under subparagraphs (B) and 
(C) of section 495(a)(6); and 
‘‘(B) may include— 
‘‘(i) if required by the institution’s ac-
crediting agency or association, an agree-
ment between institutions for such a teach- 
out plan; and 
‘‘(ii) such other information as the 
Secretary may require.’’. 
SEC. 4626. EXPERIMENTAL PROGRAMS. 
Section 487A of the Higher Education Act of 1965 (20 
U.S.C. 1094a) is amended to read as follows: 
‘‘SEC. 487A. EXPERIMENTATION WITH STATUTORY AND 
REGULATORY FLEXIBILITY. 
‘‘(a) EXPERIMENTAL SITES.—The Secretary is author-
ized to periodically select a limited number of institutions 
for voluntary participation as experimental sites to test the 
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effectiveness of approaches to statutory and regulatory flexi-
bility that— 
‘‘(1) to the extent appropriate, may lead to a re-
duction of regulatory burden on institutions of higher 
education or the Department of Education, except 
that the Secretary shall not waive any requirement of 
this title for any institution participating as an ex-
perimental site that would reduce the protections or 
the information provided to a student under this Act; 
and 
‘‘(2) aim to increase student success, as deter-
mined in accordance with subsection (g). 
‘‘(b) CONTINUING AND DISCONTINUING EXPERIMENTS 
AND EXPERIMENTAL SITES.—The Secretary may continue 
any experiment or the voluntary participation of any ex-
perimental site in existence as of the date of enactment of 
the College Affordability Act, unless the Secretary deter-
mines that such experiment or site has not been successful 
in increasing student success as determined in accordance 
with subsection (g). Any experiment or experimental site 
approved by the Secretary prior to the date of enactment 
of the College Affordability Act that has not been successful 
in increasing student success shall be discontinued before 
the first day of the first award year beginning after such 
date. 
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‘‘(c) WAIVERS.—The Secretary is authorized to waive, 
for any institution participating as an experimental site 
under subsection (a), any requirements in this title, includ-
ing requirements related to the award process and disburse-
ment of student financial aid (such as innovative delivery 
systems for modular or compressed courses, or other innova-
tive systems), verification of student financial aid applica-
tion data, entrance and exit interviews, or other manage-
ment procedures or processes as determined in the nego-
tiated rulemaking process under section 492, or regulations 
prescribed under this title, that will bias the results of the 
experiment, except that the Secretary shall not waive any 
provisions with respect to award rules (other than an 
award rule related to an experiment in modular or com-
pressed schedules), grant and loan maximum award 
amounts, and need analysis requirements unless the waiver 
of such provisions is authorized by another provision under 
this title. 
‘‘(d) EVALUATION PLAN REQUIRED.—Before notifying 
institutions of the intent of the Secretary to carry out an 
experiment under this section, the Secretary, in consulta-
tion with the Director of the Institute of Education 
Sciences, shall develop an evaluation plan for the experi-
ment. The evaluation plan shall include the following: 
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‘‘(1) Identification of the methodology to be used 
for collecting data on the experiment which shall in-
clude, to the extent practicable, a methodology that al-
lows for the disaggregation of data by age, race, gen-
der, disability status, status as a veteran or member 
of the Armed Forces, status as a first generation col-
lege student, and status as a recipient of a Federal 
Pell Grant under section 401. 
‘‘(2) Identification of the rigorous evaluation 
methods to be used for determining the impact of the 
experiment, which shall include, to the extent prac-
ticable— 
‘‘(A) a randomized controlled design; and 
‘‘(B) an assessment of whether the experi-
ment has a differential impact on any group de-
scribed in paragraph (1). 
‘‘(3) A schedule for conducting the experiment in 
accordance with the duration limit specified in sub-
section (f). 
‘‘(4) An estimate of the cost of conducting the ex-
periment, to the extent practicable. 
‘‘(5) An estimate of the size of the study sample 
(such as the number of participating students or in-
stitutions) needed to determine if the experiment has 
statistically significant effects. 
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‘‘(e) LIMITATION PENDING NOTICE TO CONGRESS.— 
‘‘(1) LIMITATION.—The Secretary may not carry 
out an experiment at an experimental site under this 
section until a period of 60 days has elapsed fol-
lowing the date on which the Secretary submits to the 
authorizing committees the notice described in para-
graph (2). 
‘‘(2) NOTICE
TO
CONGRESS.—The notice de-
scribed in this paragraph is a written notice that in-
cludes— 
‘‘(A) a description of the experiment pro-
posed to be carried out by the Secretary, includ-
ing the rationale for the proposed experiment; 
‘‘(B) the policy-relevant questions the Sec-
retary intends to evaluate through the experi-
ment and an explanation of how the design of 
the experiment will allow the Secretary to best 
answer those questions; 
‘‘(C) a list of the specific statutory and reg-
ulatory requirements that the Secretary intends 
to waive with respect to an institution partici-
pating as an experimental site and the legal au-
thority for such waivers; 
‘‘(D) an explanation of how the statutory 
and regulatory flexibility provided to an institu-
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tion participating as an experimental site is ex-
pected to increase student success, as required 
under subsection (a); and 
‘‘(E) a copy of the evaluation plan devel-
oped under subsection (d). 
‘‘(f) DURATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the duration of an experiment under this 
section shall not exceed a period of four years begin-
ning with the first award year for which Federal fi-
nancial aid is disbursed to students participating in 
the experiment. 
‘‘(2) EXTENSION.—The Secretary may extend an 
experiment for up to two years beyond the four-year 
period specified in paragraph (1) on a case-by-case 
basis. 
‘‘(g) DETERMINATION OF SUCCESS.—For the purposes 
of subsection (a), the Secretary shall make a determination 
of success regarding an institution’s participation as an ex-
perimental site based on— 
‘‘(1) whether, and to what extent, student out-
comes improve as a direct result of the experiment; 
‘‘(2) whether the experimental site improves the 
delivery of services to, or otherwise benefitted, stu-
dents; and 
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‘‘(3) the extent to which the experiment reduces 
administrative burdens on institutions participating 
as experimental sites, as documented in the Sec-
retary’s annual report under subsection (h)(3), with-
out harming students. 
‘‘(h) OUTCOMES REPORTING.— 
‘‘(1) DATA SUBMISSION.—Each institution par-
ticipating as an experimental site shall submit to the 
Secretary, on a periodic basis to be determined by the 
Secretary, data on outcomes relating to the experi-
ment carried out at the site. 
‘‘(2) REVIEW AND EVALUATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall review and rigor-
ously evaluate the activities of each institution 
participating as an experimental site. 
‘‘(B) EVALUATION METHODOLOGY.—To the 
extent practicable, the evaluation under subpara-
graph (A) shall be based on data collected in ac-
cordance with the data collection methodology 
specified in the evaluation plan for the experi-
ment under subsection (d)(1). 
‘‘(3) ANNUAL REPORT.—On an annual basis, the 
Secretary shall submit to the authorizing committees 
a report based on the review and evaluation carried 
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out under paragraph (2). Each report shall include, 
with respect to each experiment carried out by the 
Secretary during the period covered by the report, the 
following: 
‘‘(A) A summary of the status of the experi-
ment. 
‘‘(B) A list identifying each institution par-
ticipating as an experimental site. 
‘‘(C) The specific statutory or regulatory 
waivers granted to each institution participating 
as an experimental site. 
‘‘(D) In a case in which data on the experi-
ment is not collected in accordance with the 
methodology specified in the evaluation plan 
under subsection (d)(1)— 
‘‘(i) the reasons that such methodology 
was not used to collect data on the experi-
ment; and 
‘‘(ii) a description of the alternative 
data collection methodology used for the ex-
periment. 
‘‘(E) An evaluation of the quality of data 
yielded by the experiment. 
‘‘(F) A summary and analysis of the find-
ings, to date, of the experiment. 
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‘‘(G) An assessment of whether the experi-
ment has had a differential impact on any group 
listed in subsection (d)(1). 
‘‘(H) An explanation of any current or fore-
seen barriers to conducting the experiment. 
‘‘(I) In the case of an experiment for which 
the Secretary determines there is sufficient value 
in continuing the experiment past the duration 
limit specified in subsection (f)(1), adequate doc-
umentation to justify such continuation. 
‘‘(4) FINAL REPORT.—Not later than 180 days 
after the conclusion of each experiment, the Secretary 
shall submit to the authorizing committees a report 
that includes the following: 
‘‘(A) A summary of the data yielded by the 
experiment, including, to the extent practicable, 
data 
on 
the 
results 
of 
the 
experiment 
disaggregated by age, race, gender, disability sta-
tus, status as a veteran or member of the Armed 
Forces, status as a first generation college stu-
dent, and status as a recipient of a Federal Pell 
Grant under section 401. 
‘‘(B) The conclusions reached regarding 
each experiment conducted. 
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‘‘(C) Recommendations, based on the results 
of the experiment— 
‘‘(i) to improve and streamline rel-
evant statutes, including this Act; and 
‘‘(ii) for improvements to relevant reg-
ulations. 
‘‘(D) An explanation of any changes to reg-
ulations that the Secretary intends to make as a 
result of the experiment. 
‘‘(5) PUBLIC
AVAILABILITY.—Each report sub-
mitted under paragraphs (3) and (4) shall be made 
available on a publicly accessible website of the De-
partment of Education. 
‘‘(i) FAST-TRACK PROCESS TO COMPLY WITH INFOR-
MATION COLLECTION REQUIREMENTS.—The requirements 
of section 3507 of title 44, United States Code, shall not 
apply to the collection of information by the Department 
of Education on experiments carried out in accordance with 
this section.’’. 
SEC. 4627. ADMINISTRATIVE EXPENSES. 
Section 489(a) of the Higher Education Act of 1965 
(20 U.S.C. 1096(a)) is amended— 
(1) in the second sentence, by striking ‘‘or under 
part E of this title’’; and 
(2) in the third sentence— 
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(A) by inserting ‘‘and’’ after ‘‘subpart 3 of 
part A,’’; and 
(B) by striking ‘‘compensation of students,’’ 
and all that follows through the period and in-
serting ‘‘compensation of students.’’. 
SEC. 4628. CRIMINAL PENALTIES FOR MISUSE OF ACCESS 
DEVICES. 
(a) IN GENERAL.—Section 490 (20 U.S.C. 1097) is 
amended by adding at the end the following: 
‘‘(e) ACCESS TO DEPARTMENT OF EDUCATION INFOR-
MATION TECHNOLOGY SYSTEMS FOR FRAUD, COMMERCIAL 
ADVANTAGE, OR PRIVATE FINANCIAL GAIN.—Any person 
who knowingly uses an access device, as defined in section 
1029(e)(1) of title 18, United States Code, issued to another 
person or obtained by fraud or false statement to access De-
partment information technology systems for purposes of 
obtaining commercial advantage or private financial gain, 
or in furtherance of any criminal or tortious act in viola-
tion of the Constitution or laws of the United States or of 
any State, shall be fined not more than $20,000, imprisoned 
for not more than 5 years, or both.’’. 
(b) GUIDANCE.—The Secretary shall issue guidance re-
garding the use of access devices in a manner that complies 
with this section, and the amendments made by this section. 
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(c) EFFECTIVE DATE OF PENALTIES.—The penalties 
described in section 490(e) of the Higher Education Act of 
1965 (20 U.S.C. 1097), as added by subsection (a), shall 
take effect the day after the date on which the Secretary 
issues guidance regarding the use of access devices, as de-
scribed in subsection (b). 
SEC. 4629. REGIONAL MEETINGS AND NEGOTIATED RULE-
MAKING. 
Section 492 of the Higher Education Act of 1965 (20 
U.S.C. 1098a) is amended— 
(1) in subsection (a)(1), by striking ‘‘students, 
institutions of higher education, State student grant 
agencies, guaranty agencies, lenders, secondary mar-
kets, loan servicers, guaranty agency servicers, and 
collection agencies’’ and inserting ‘‘students and bor-
rowers, consumer representatives, institutions of high-
er education, and contractors responsible for carrying 
out student financial assistance programs under this 
title’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘both rep-
resentatives of such groups from Washington, 
D.C., and industry participants’’ and inserting 
‘‘representatives that are broadly representative 
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of constituencies in different sectors and geo-
graphic locations’’; and 
(B) by adding at the end the following: 
‘‘(3) NEGOTIATED
RULEMAKING
PROCESS.—In 
carrying out a negotiated rulemaking process required 
under this section, the Secretary shall— 
‘‘(A) to the extent practicable, comply with 
requests from the participants in such negotiated 
rulemaking process for data; 
‘‘(B) make publicly available issue papers 
and the proposed regulations described in para-
graph (1) in a timely manner that allows for 
public review; 
‘‘(C) make video recordings of each nego-
tiated rulemaking session publicly available 
through simultaneous transmission; 
‘‘(D) archive the video recordings described 
in subparagraph (C) in a publicly available 
manner; and 
‘‘(E) make publicly available the transcripts 
of each such negotiated rulemaking session.’’. 
SEC. 4630. INCOME-BASED REPAYMENT PLAN. 
(a) OPTIONS TO ENTER INTO THE NEW FIXED REPAY-
MENT PLAN AND INCOME-BASED REPAYMENT PLAN.—Sec-
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tion 493C(b) of the Higher Education Act of 1965 (20 
U.S.C. 1098e) is amended— 
(1) in paragraph (7)(B)— 
(A) by striking ‘‘or’’ at the end of clause 
(iv); and 
(B) by adding at the end the following: 
‘‘(vi) has made payments under the in-
come-based repayment plan under section 
493C(f); or 
‘‘(vii) has made payments under the 
fixed repayment plan described in section 
493E;’’; 
(2) by amending paragraph (8) to read as fol-
lows: 
‘‘(8) a borrower who is repaying a loan made 
under part B or D pursuant to income-based repay-
ment may elect, at any time, to terminate repayment 
pursuant to income-based repayment and repay such 
loan under the income-based repayment plan under 
section 493C(f) or the fixed repayment plan described 
in section 493E;’’; 
(3) in paragraph (9), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
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‘‘(10) a borrower who is repaying a loan made, 
insured, or guaranteed under part B or D pursuant 
to this section may repay such loan in full at any 
time without penalty.’’. 
(b) AUTOMATIC RECERTIFICATION OF INCOME FOR IN-
COME-DRIVEN REPAYMENT PLANS.—Section 493C(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is 
amended— 
(1) by striking ‘‘The Secretary shall establish’’ 
and inserting the following: 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish’’; 
(2) by striking ‘‘The Secretary shall consider’’ 
and inserting the following: 
‘‘(2) PROCEDURES FOR ELIGIBILITY.—The Sec-
retary shall— 
‘‘(A) consider’’; and 
(3) by striking ‘‘428C(b)(1)(E).’’ and inserting 
the following: ‘‘428C(b)(1)(E); and 
‘‘(B) beginning as soon as the Secretary de-
termines practicable after the Secretary finalizes 
the procedures required under section 9004 of the 
College Affordability Act, but not later than 2 
years after the date of enactment of such Act, 
carry out, with respect to borrowers of any cov-
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ered loan (as defined in section 455(d)(10)), in-
cluding such borrowers who select, or for whom 
the Secretary selects under paragraph (8)(C) or 
(9)(C) of subsection (d), or section 428(m)(1), the 
income-based repayment plan under subsection 
(f), procedures for income-based repayment plans 
under this section that are equivalent to the pro-
cedures carried out under section 455(e)(9) with 
respect to income contingent repayment plans.’’. 
(c) INCOME-BASED REPAYMENT.—Section 493C of the 
Higher Education Act of 1965 (20 U.S.C. 1098e) is further 
amended by adding at the end the following: 
‘‘(f) INCOME-BASED REPAYMENT FOR NEW LOANS ON 
AND AFTER JULY 1, 2021, AND FOR BORROWERS WHO 
ENTER
INCOME-BASED
REPAYMENT
AFTER
JUNE
30, 
2021.— 
‘‘(1) IN GENERAL.—The income-based repayment 
plan under this subsection shall be carried out in ac-
cordance with this section, except as otherwise speci-
fied in this subsection— 
‘‘(A) with respect to any loan made under 
part D on or after July 1, 2021, if such borrower 
elects such income-based repayment plan for the 
loan; and 
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‘‘(B) with respect to any loan made, in-
sured, or guaranteed under part B or D on or 
before June 30, 2021, if such borrower elects to 
repay the loan under such income-based repay-
ment plan on or after July 1, 2021. 
‘‘(2) SPECIAL
TERMS.—Notwithstanding any 
other provision of this section, with respect to a loan 
described under paragraph (1), the following terms 
shall apply to the income-based repayment plan 
under this subsection: 
‘‘(A)(i) 
Notwithstanding 
subsection 
(a)(3)(B), the repayment amount under this sub-
section shall be an amount equal to 10 percent 
of the result obtained by calculating, on at least 
an annual basis, the amount by which the ad-
justed gross income of the borrower (subject to 
clause (ii)) exceeds the applicable percentage of 
the poverty line in accordance with clause (iii). 
‘‘(ii)(I) Subject to subclause (II), in the case 
of a married borrower (regardless of tax filing 
status), clause (i) shall be applied by sub-
stituting ‘the adjusted gross income of the bor-
rower and the borrower’s spouse’ for ‘the adjusted 
gross income of the borrower’. 
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‘‘(II) Subclause (I) shall not be applicable 
to any borrower who is married and who cer-
tifies to the Secretary through a form approved 
by the Secretary that the borrower is— 
‘‘(aa) separated from the spouse of the 
borrower; or 
‘‘(bb) unable to reasonably access the 
income information the spouse of such bor-
rower. 
‘‘(iii) For purposes of clause (i), the term 
‘applicable percentage’ means 250 percent of the 
poverty line applicable to the borrower’s family 
size (as determined under section 673(2) of the 
Community Services Block Grant Act (42 U.S.C. 
9902(2)))— 
‘‘(I) reduced by 10 percentage points 
for each $1,000 by which the borrower’s ad-
justed gross income (in the case of a single 
borrower) exceeds $80,000; and 
‘‘(II) reduced by 10 percentage points 
for each $2,000 by which the borrower’s ad-
justed gross income (in the case of a mar-
ried borrower (regardless of filing status)), 
exceeds $160,000. 
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‘‘(B) Subsection (b)(7)(B) shall apply by 
substituting ‘20 years’ for ‘25 years’. 
‘‘(C) A borrower of such a loan may elect, 
and remain enrolled in, the income-based repay-
ment plan under this subsection regardless of— 
‘‘(i) whether such borrower has a par-
tial financial hardship; and 
‘‘(ii) the income level of the borrower. 
‘‘(D) Notwithstanding subparagraph (A) of 
subsection (b)(6), a borrower’s monthly pay-
ment— 
‘‘(i) shall be equal to the repayment 
amount determined under subparagraph 
(A) divided by 12; and 
‘‘(ii) may exceed the monthly repay-
ment amount under a standard 10-year re-
payment plan or a fixed repayment plan 
described in section 493E. 
‘‘(E) Subparagraph (B) of subsection (b)(3) 
shall not apply. 
‘‘(F) Subsection (d) shall not apply. 
‘‘(G) In the case of a Federal Direct Con-
solidation Loan made on or after the date of en-
actment of the College Affordability Act that is 
being repaid under this subsection, any monthly 
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821 
payment made pursuant to any repayment plan 
listed in subsection (b)(7)(B) on a loan for which 
the liability has been discharged by the proceeds 
of such consolidation loan shall be treated as a 
monthly payment under this subsection on the 
portion of such consolidation loan that is attrib-
utable to such discharged loan, except that in the 
case of a subsequent consolidation loan, for pur-
poses of this clause— 
‘‘(i) any monthly payment made on 
the first consolidation loan or any other 
loan for which the liability has been dis-
charged by such subsequent consolidation 
loan shall be applicable; and 
‘‘(ii) any monthly payment made on a 
loan for which the liability has been dis-
charged by such first consolidation loan 
shall not be applicable. 
‘‘(3) ADDITIONAL SPECIAL TERMS FOR CERTAIN 
BORROWERS.—A borrower described in paragraph 
(1)(B)— 
‘‘(A) may— 
‘‘(i) choose to continue repayment pur-
suant to the repayment plan in which the 
borrower is enrolled on June 30, 2021; or 
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822 
‘‘(ii) make a one-time election to— 
‘‘(I) terminate repayment pursu-
ant to the repayment plan described in 
clause (i) and enter the income-based 
repayment plan under this subsection; 
or 
‘‘(II) terminate repayment pursu-
ant to the repayment plan described in 
clause (i) and enter a fixed repayment 
plan described in section 493E; and 
‘‘(B) who makes an election under subpara-
graph (A)(ii), shall not repay a loan described 
in paragraph (1)(B) under a repayment plan 
that is not an income-based repayment plan 
under this subsection or a fixed repayment plan 
described in section 493E. 
‘‘(4) WRITTEN, ELECTRONIC, OR
VERBAL
EN-
ROLLMENT IN INCOME-BASED REPAYMENT.— 
‘‘(A) IN GENERAL.—The Secretary shall de-
velop and implement a process that is consistent 
with any procedures (including verification pro-
cedures) established under subsection (c), which 
enables a covered borrower of a loan made under 
part D who desires to elect to repay such loan 
under income-based repayment under this sub-
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823 
section to make such election through written, 
electronic, or verbal notice to the Secretary. 
‘‘(B) COVERED
BORROWER
DEFINED.—In 
this paragraph, the term ‘covered borrower’ 
means a borrower of a loan made under part D 
who— 
‘‘(i) is enrolled in the fixed repayment 
plan under section 493E; or 
‘‘(ii) has not yet selected a repayment 
plan. 
‘‘(g) SPECIAL RULE FOR REFINANCED LOANS.— 
‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL 
LOANS.—In calculating the period of time during 
which a borrower of a loan that is refinanced under 
section 460A has made monthly payments for pur-
poses of subsection (b)(7), the Secretary shall include 
each month in which a monthly payment was made 
for the original loan or the refinanced loan, if such 
monthly payment otherwise meet the requirements of 
this section. 
‘‘(2) FEDERAL
DIRECT
REFINANCED
PRIVATE 
LOANS.—In calculating the period of time during 
which a borrower of a Federal Direct Refinanced Pri-
vate Loan under section 460B has made monthly 
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824 
payments for purposes of subsection (b)(7), the Sec-
retary shall include only payments— 
‘‘(A) that are made after the date of the 
issuance of the Federal Direct Refinanced Pri-
vate Loan; and 
‘‘(B) that otherwise meet the requirements of 
this section.’’. 
SEC. 4631. FIXED REPAYMENT PLAN. 
Part G of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1088 et seq.) is further amended by adding at 
the end the following: 
‘‘SEC. 493E. FIXED REPAYMENT PLAN. 
‘‘(a) IN GENERAL.—A borrower of a loan made under 
this part on or after July 1, 2021, and a borrower who 
is in repayment on a loan made, insured, or guaranteed 
under part B or part D before July 1, 2021, may elect to 
repay such loan under the fixed repayment plan described 
in this section. 
‘‘(b) FIXED REPAYMENT PLAN.—Under the fixed re-
payment plan, a borrower whose total outstanding amount 
of principal and interest on such a loan (as of the day be-
fore entering repayment on such loan)— 
‘‘(1) is equal to or less than $20,000, shall repay 
such loan with a fixed monthly repayment amount 
paid over a period of 10 years; 
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825 
‘‘(2) is more than $20,000 and less than $30,000, 
shall repay such loan with a fixed monthly repay-
ment amount paid over a period of— 
‘‘(A) 15 years; or 
‘‘(B) the period described in paragraph (1), 
if the borrower elects such period; 
‘‘(3) is equal to or greater than $30,000, and less 
than $40,000, shall repay such loan with a fixed 
monthly repayment amount paid over a period of— 
‘‘(A) 20 years; or 
‘‘(B) the period described in paragraph (1) 
or (2), if the borrower elects such period; and 
‘‘(4) is equal to or greater than $40,000, shall 
repay such loan with a fixed monthly repayment 
amount paid over a period of— 
‘‘(A) 25 years; or 
‘‘(B) the period described in any of para-
graphs (1) through (3), if the borrower elects 
such period. 
‘‘(c) 
TREATMENT
OF
CERTAIN
CONSOLIDATION 
LOANS.—In the case of a Federal Direct Consolidation 
Loan made on or after the date of enactment of the College 
Affordability Act that is being repaid under this section, 
any monthly payment made pursuant to any repayment 
plan listed in section 493C(b)(7)(B) on a loan for which 
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826 
the liability has been discharged by the proceeds of such con-
solidation loan shall be treated as a monthly payment 
under this section on the portion of such consolidation loan 
that is attributable to such discharged loan, except that in 
the case of a subsequent consolidation loan, for purposes of 
this subsection— 
‘‘(1) any monthly payment made on the first 
consolidation loan or any other loan for which the li-
ability has been discharged by such subsequent con-
solidation loan shall be applicable; and 
‘‘(2) any monthly payment made on a loan for 
which the liability has been discharged by such first 
consolidation loan shall not be applicable.’’. 
SEC. 4632. REQUIRING A COMMON MANUAL FOR LOAN 
SERVICERS. 
Part G of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1088 et seq.), as amended by this part, is further 
amended by adding at the end the following: 
‘‘SEC. 493F. REQUIRING A COMMON MANUAL FOR LOAN 
SERVICERS. 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of the College Affordability Act, the Sec-
retary shall develop a manual of common procedures and 
policies for entities with which the Secretary enters into 
contracts for the origination, servicing, and collection of 
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827 
covered loans, to standardize procedures to ensure consist-
ency of quality and practice across such entities, and a 
minimum standard of quality and practice, to ensure that 
borrowers, including individuals pursuing public service 
loan forgiveness under section 455(m) and teachers, are well 
served. 
‘‘(b) UPDATES.—The Secretary shall update the man-
ual under subsection (a) as frequently as may be necessary, 
but not less frequently than once every 5 years. 
‘‘(c) COVERED LOANS DEFINED.—The term ‘covered 
loans’ means— 
‘‘(1) loans sold or assigned to the Secretary 
under part B; 
‘‘(2) loans made or purchased under part D; and 
‘‘(3) loans referred, transferred, or assigned to 
the Secretary under part E.’’. 
SEC. 4633. REMOVAL OF RECORD OF DEFAULT. 
Part G of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1088 et seq.), as amended by the preceding sec-
tions, is further amended by adding at the end the fol-
lowing: 
‘‘SEC. 493G. REMOVAL OF RECORD OF DEFAULT. 
‘‘(a) IN GENERAL.—Upon repaying in full the amount 
due on a defaulted loan made, insured, or guaranteed under 
this title, the Secretary, guaranty agency, or other holder 
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828 
of the loan shall request any consumer reporting agency to 
which the Secretary, guaranty agency, or holder, as appli-
cable, reported the default of the loan, to remove any adverse 
item of information relating to such loan from the bor-
rower’s credit history. 
‘‘(b) RETROACTIVE APPLICATION.—With respect to a 
borrower that, prior to the date of enactment of the College 
Affordability Act, repaid in full the amount due on a de-
faulted loan made, insured, or guaranteed under this title, 
the Secretary, guaranty agency, or holder that reported the 
default of the loan to a consumer reporting agency shall 
request that such consumer reporting agency remove any 
adverse item of information relating to such loan from the 
borrower’s credit history, upon receiving a request from the 
borrower for such removal.’’. 
SEC. 4634. AMENDMENTS TO TERMS AND CONDITIONS OF 
BORROWER DEFENSES. 
(a) IN GENERAL.—Part G of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1088 et seq.), as amended 
by the preceding sections, is further amended by adding at 
the end the following: 
‘‘SEC. 493H. BORROWER DEFENSES. 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of State or Federal law, a defense to repayment of a 
loan under this title includes— 
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829 
‘‘(1) a substantial misrepresentation; 
‘‘(2) an act or omission that would give rise to 
a cause of action against an institution of higher edu-
cation under applicable State law, to the extent that 
such act or omission relates to— 
‘‘(A) a loan received by a borrower under 
this title; or 
‘‘(B) educational services for which such a 
loan was received; or 
‘‘(3) such further acts or omissions that the Sec-
retary determines to be appropriate in accordance 
with subsection (b). 
‘‘(b) REGULATIONS.—The Secretary shall specify in 
regulations which further acts or omissions of an institution 
of higher education a borrower may assert as a defense to 
repayment of a loan made under this title. 
‘‘(c) SECRETARIAL DETERMINATION.— 
‘‘(1) IN GENERAL.—The Secretary shall deter-
mine whether a borrower is entitled to relief under 
this section based on all evidence available to the Sec-
retary. 
‘‘(2) EVIDENTIARY STANDARD.—A borrower shall 
be entitled to relief under this section if a preponder-
ance of the evidence available to the Secretary dem-
onstrates that the borrower is entitled to such relief. 
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830 
‘‘(3) INDEPENDENT
DETERMINATION.—A deter-
mination under paragraph (1) shall be independent 
of any action that the Secretary may take to recoup 
funds from the institution of higher education impli-
cated by the borrower defense claim. 
‘‘(d) PROCEDURES FOR REVIEW AND RESOLUTION OF 
CLAIMS.— 
‘‘(1) PROCEDURES
REQUIRED.—The Secretary 
shall establish procedures for the fair and expeditious 
review and resolution of borrower defense claims 
brought under this section. In establishing such proce-
dures, the Secretary shall— 
‘‘(A) provide a fair process for the review 
and resolution of borrower defense claims, which 
shall include procedures for the consideration of 
borrower defense claims on behalf of groups of 
similarly situated borrowers without requiring 
each borrower in the group to submit a separate 
claim; 
‘‘(B) review a borrower defense claim at 
any time without regard to the repayment status 
of any loan subject to such claim; 
‘‘(C) allow a legal representative to bring a 
borrower defense claim— 
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‘‘(i) on behalf of an individual bor-
rower; or 
‘‘(ii) on behalf of a group of similarly 
situated borrowers; and 
‘‘(D) specify a fixed timeframe for the reso-
lution of borrower defense claims, except that— 
‘‘(i) such timeframe shall not exceed a 
12-month period beginning on the day on 
which a borrower submits such a claim 
under this section; and 
‘‘(ii) a borrower defense claim that was 
submitted to the Secretary before the date of 
enactment of the College Affordability Act 
that has not been resolved as of such date of 
enactment, shall be resolved not later than 
12 months after such date of enactment. 
‘‘(2) 
DEFERMENT
DURING
PENDENCY
OF 
CLAIMS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a loan made under this title that is 
subject to a pending borrower defense claim shall 
be placed in deferment status, during which peri-
odic installments of principal need not be paid 
and interest shall not accrue (or shall be paid by 
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832 
the Secretary), without regard to whether such 
loan is in default. 
‘‘(B) OPT OUT.—The borrower of a loan 
subject to deferment under subparagraph (A) 
may opt out of such deferment at any time dur-
ing the pendency of the borrower defense claim. 
‘‘(C) SUSPENSION
OF
CREDIT
REPORTING 
AND COLLECTION.—The Secretary shall suspend 
all adverse credit reporting and collection activ-
ity, including offsets and garnishments, with re-
spect to any loan in default that is subject to a 
deferment under subparagraph (A). 
‘‘(f) TERMS OF RELIEF.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
under subsection (c) that a borrower is entitled to re-
lief, the Secretary shall, subject to paragraph (2)— 
‘‘(A) cancel or repay all or a portion of the 
balance of interest and principal due on any 
loan subject to the claim for relief; and 
‘‘(B) return to the borrower an amount not 
in excess of the total amount of payments made 
on the loan by the borrower. 
‘‘(2) CANCELLATION OF DEBT AND RETURN OF 
PAYMENTS.— 
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833 
‘‘(A) 
SUBSTANTIAL
MISREPRESENTATION 
CLAIMS.—If the Secretary determines that a bor-
rower is entitled to relief based on a claim of 
substantial 
misrepresentation, 
the 
Secretary 
shall— 
‘‘(i) cancel or repay the full balance of 
interest and principal due on any loan sub-
ject to the claim; and 
‘‘(ii) return to the borrower an amount 
equal to the total amount of payments made 
on the loan by the borrower. 
‘‘(B) OTHER CLAIMS.—If the Secretary de-
termines that a borrower is entitled to relief 
based on a claim other than substantial mis-
representation, there shall be a presumption that 
the Secretary will cancel or repay the full bal-
ance of principal and interest due on the loan 
and return the full amount of payments made by 
the borrower as described in subparagraph (A). 
If the Secretary determines that full cancellation 
or repayment of the debt and return of all funds 
paid on the loan is not appropriate in a par-
ticular case, the Secretary shall provide the bor-
rower with a written explanation as to why par-
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834 
tial cancellation or repayment, or the partial re-
turn of funds is appropriate. 
‘‘(g) APPEALS.—Upon a determination by the Sec-
retary to deny a borrower defense claim under this section, 
the borrower may file an appeal with the Department. The 
Secretary shall develop and implement a standardized proc-
ess for the treatment of appeals under this subsection. 
‘‘(h) REFILING OF CLAIMS.—A borrower whose claim 
was denied under this section may refile the claim for good 
cause, which may include— 
‘‘(1) the availability of substantial evidence that 
was not available to the Secretary at the time the ini-
tial claim was denied; 
‘‘(2) the emergence of facts or circumstances that 
may have substantially altered the Secretary’s origi-
nal treatment of the initial claim; and 
‘‘(3) such other factors as may be determined by 
the Secretary. 
‘‘(i) DESIGNATION
OF PERSONNEL.—The Secretary 
shall designate qualified personnel within the Department 
whose principal responsibility shall be the processing of bor-
rower defense claims submitted under his section. 
‘‘(j) 
AVAILABILITY
OF
INFORMATION
TO
BOR-
ROWERS.— 
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835 
‘‘(1) BORROWER
REQUESTS
FOR
INFORMA-
TION.—At the request of a borrower, the Secretary 
shall identify and provide to the borrower or the legal 
representative of the borrower any records the Sec-
retary is considering as part of the borrower’s claim. 
‘‘(2) STATUS OF CLAIM.—The Secretary shall es-
tablish a process under which each borrower with a 
claim pending under this section shall be notified of 
the status of the pending claim not fewer than once 
every 90 days. 
‘‘(3) INFORMATION
FROM
INSTITUTIONS.—The 
Secretary may request documents and other informa-
tion relating to a borrower defense claim from an in-
stitution of higher education. An institution that re-
ceives a request for information from the Secretary 
under this subsection shall provide the information to 
the Secretary at such time, in such form, and in such 
manner as the Secretary may direct. 
‘‘(k) QUARTERLY REPORTS.— 
‘‘(1) IN GENERAL.—Not less than once every fis-
cal quarter, the Secretary shall submit to the author-
izing committees a report that includes the following: 
‘‘(A) The total number of claims submitted 
to the Secretary pursuant to this subsection in 
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836 
the fiscal quarter covered by the report and in 
all previous fiscal quarters. 
‘‘(B) Of the claims described in subpara-
graph (A)— 
‘‘(i) the number of claims that remain 
pending; 
‘‘(ii) the number of claims that were 
denied by the Secretary, and the total dollar 
amount of such claims; and 
‘‘(iii) the number of claims that were 
approved by the Secretary, and the total 
dollar amount of such claims. 
‘‘(2) DISAGGREGATION.—The information de-
scribed in subparagraphs (A) and (B) of paragraph 
(1) shall be disaggregated by State and institution of 
higher education (except that such disaggregation 
shall not be required in a case in which the results 
would reveal personally identifiable information 
about an individual borrower). 
‘‘(3) PUBLIC
AVAILABILITY.—The information 
included in each report submitted under paragraph 
(A) shall be made available on a publicly accessible 
website of the Department. 
‘‘(l) DEFINITIONS.—In this section: 
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837 
‘‘(1) The term ‘legal representative’ means a li-
censed attorney working on behalf of a borrower or a 
group of borrowers, including— 
‘‘(A) a State attorney general; and 
‘‘(B) an attorney employed by a State agen-
cy, a Federal agency, or a nonprofit organiza-
tion that is qualified to provide legal representa-
tion to borrowers. 
‘‘(2) The term ‘substantial misrepresentation’ 
has the meaning given that term in section 
487(c)(3)(C).’’. 
(b) CONFORMING AMENDMENT.—Subsection (h) of sec-
tion 455 of the Higher Education Act of 1965 (20 U.S.C. 
1087e) is repealed. 
SEC. 4635. ON-TIME REPAYMENT RATES. 
Part G of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1088 et seq.), as amended by the preceding sec-
tions, is further amended by adding at the end the fol-
lowing: 
‘‘SEC. 493I. ON-TIME REPAYMENT RATES. 
‘‘(a) CALCULATION OF ON-TIME REPAYMENT RATES.— 
‘‘(1) ON-TIME REPAYMENT RATE DEFINED.— 
‘‘(A) IN GENERAL.—The term ‘on-time re-
payment rate’ means for any fiscal year in 
which 30 or more current and former students at 
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an institution have been in repayment for 3 
years on any covered loan received for attend-
ance at the institution, the percentage of such 
current and former students who have paid at 
least 90 percent of the monthly payments on 
such loan during such 3-year repayment period. 
‘‘(B) SMALL COHORTS.—For any fiscal year 
in which fewer than 30 of an institution’s cur-
rent and former students have been in repayment 
for 3 years, the term ‘on-time repayment rate’ 
means the percentage of such current and former 
students who entered their 3rd year of repayment 
on any covered loan received for attendance at 
the institution in any of the 3 most recent fiscal 
years and who have paid at least 90 percent of 
the monthly payments on such loan during such 
3-year repayment period. 
‘‘(2) ADDITIONAL REQUIREMENTS FOR RATE DE-
TERMINATION.— 
‘‘(A) MULTIPLE INSTITUTIONS.—In the case 
of a student who has attended and borrowed a 
covered loan for attendance at more than one in-
stitution, the student (and such student’s subse-
quent repayment or monthly payment on such 
loan) is attributed to each institution for attend-
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839 
ance at which the student received such loan for 
which the student entered the 3rd year of repay-
ment in the fiscal year for which the on-time re-
payment rate is being determined. 
‘‘(B) 
TREATMENT
OF
CONSOLIDATION 
LOANS.—For purposes of determining whether a 
student is in repayment (or has paid a monthly 
payment) on a loan under section 428C or a 
Federal Direct Consolidation Loan, only the por-
tion of such loan that is used to repay a covered 
loan received for attendance at the institution 
whose on-time repayment rate is being deter-
mined shall be considered for purposes of such 
rate. 
‘‘(3) DETERMINATION OF WHEN MONTHLY PAY-
MENT IS PAID.—For purposes of determining the on- 
time repayment rate of an institution, a student shall 
be considered to have paid a monthly payment on a 
covered loan if one of the following applies: 
‘‘(A) The amount of such monthly payment 
has been paid not later than 30 days after the 
date on which such monthly payment is due, ex-
cept that a monthly payment by the institution, 
such institution’s owner, agent, contractor, em-
ployee, or any other entity or individual affili-
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840 
ated with such institution made on behalf of a 
student who is not employed by the institution 
shall not be considered a paid monthly payment 
on such loan. 
‘‘(B) The monthly payment amount due on 
such loan is equal to zero. 
‘‘(C) The full amount due on the loan has 
been repaid or the liability on the loan has been 
otherwise discharged under this Act. 
‘‘(D) The student is in a period of 
deferment, other than— 
‘‘(i) a deferment due to an economic 
hardship described section 427(a)(2)(C)(iii), 
428(b)(1)(M)(iv), or 455(f)(2)(D); or 
‘‘(ii) a deferment due to unemployment 
described 
in 
section 
427(a)(2)(C)(ii), 
428(b)(1)(M)(ii), or 455(f)(2)(B)). 
‘‘(E) The student is in one of the following 
periods of forbearance (as applicable to loans 
made, insured, or guaranteed under part B or 
this title): 
‘‘(i) Medical or dental internship or 
residency forbearance under subclause (I) of 
section 428(c)(3)(A)(i). 
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841 
‘‘(ii) 
National 
service 
forbearance 
under 
subclause 
(III) 
of 
section 
428(c)(3)(A)(i). 
‘‘(iii) Forbearance for active duty serv-
ice in the Armed Forces under subclause 
(IV) of section 428(c)(3)(A)(i). 
‘‘(iv) Forbearance for National Guard 
Duty under section 428(c)(3)(B). 
‘‘(v) Forbearance due to military mobi-
lization or other local or national emer-
gency as authorized by the Secretary under 
section 685.205(b)(8) of title 34, Code of 
Federal Regulations (as in effect on the date 
of enactment of the College Affordability 
Act). 
‘‘(vi) Teacher loan forgiveness forbear-
ance 
under 
section 
682.213(e) 
or 
685.205(a)(5) of title 34, Code of Federal 
Regulations (as in effect on the date of en-
actment of the College Affordability Act). 
‘‘(4) PARTICIPATION RATE.— 
‘‘(A) IN
GENERAL.—An institution that 
demonstrates to the Secretary that the institu-
tion’s participation rate is equal to or less than 
20 percent for any of the 3 most recent fiscal 
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842 
years for which data is available shall not be 
subject to subsection (b). 
‘‘(B) DETERMINATION.—For purposes of 
this paragraph, the term ‘participation rate’ 
means the percentage of the institution’s regular 
students, enrolled on at least a half-time basis, 
who received a covered loan for a 12-month pe-
riod ending during the 6 months immediately 
preceding the fiscal year for which the cohort of 
borrowers used to calculate the institution’s on- 
time loan repayment rate is determined. 
‘‘(C) DATA.—An institution shall provide 
the Secretary with sufficient data to determine 
the institution’s participation rate within 30 
days after receiving an initial notification of the 
institution’s draft on-time repayment rate. 
‘‘(D) NOTIFICATION.—Prior to publication 
of a final on-time repayment rate for an institu-
tion that provides the data described in subpara-
graph (C), the Secretary shall notify the institu-
tion of the institution’s compliance or non-
compliance with subparagraph (A). 
‘‘(b) DETERMINATION OF ELIGIBILITY BASED ON RE-
PAYMENT
RATES
AND
INSTRUCTIONAL
SPENDING 
AMOUNTS.— 
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‘‘(1) INELIGIBILITY.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (C) and (D), beginning on the 
date that is one year after the date on which the 
final on-time repayment rates are published by 
the Secretary for not less than 3 fiscal years, an 
institution shall not be eligible to participate in 
a program under this title for the fiscal year for 
which the determination under this subpara-
graph is made and for the two succeeding fiscal 
years, if the Secretary determines the following 
with respect to such institution— 
‘‘(i) the on-time repayment rate of such 
institution is less than any threshold on- 
time repayment rate specified under sub-
paragraph (B) for period determined ap-
propriate by the Secretary for such thresh-
old rate; and 
‘‘(ii) with respect to any of the 3 most 
recent institutional fiscal years for which 
the institution submits to the Secretary dis-
closures on the expenditures of the institu-
tion on instruction for purposes of section 
132(i)(1)(AA), the amount expended by 
such institution on instruction for such fis-
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844 
cal year is less than 1/3 of the institution’s 
revenues derived from tuition and fees. 
‘‘(B) THRESHOLD RATES.—For purposes of 
determinations under subparagraph (A)(i), the 
Secretary shall specify 1 or more threshold on- 
time repayment rates, which rates— 
‘‘(i) shall require that a significant 
percentage of students who have been in re-
payment for 3 years on a covered loan re-
ceived for attendance at an institution of 
higher education have paid at least 90 per-
cent of the monthly payments on such cov-
ered loan during such 3-year repayment pe-
riod; and 
‘‘(ii) may be applicable with respect to 
a period of 1 or more fiscal years, as deter-
mined appropriate for such a rate. 
‘‘(C) 
EXCEPTIONS
FOR
CERTAIN
CAT-
EGORIES OF EDUCATIONAL PROGRAMS.— 
‘‘(i) EXCEPTIONS
FOR
CERTAIN
CAT-
EGORIES
OF
EDUCATIONAL
PROGRAMS.— 
With respect to an institution that loses eli-
gibility to participate in a program under 
this title in accordance with paragraph (1), 
such institution may request and be granted 
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845 
an exception to such loss of eligibility for a 
category of educational programs at such 
institution by demonstrating to the Sec-
retary that the on-time loan repayment rate 
for such category of educational programs is 
greater than the threshold percentage speci-
fied under paragraph (1)(B) for each fiscal 
year of the period on which such loss of eli-
gibility for the institution is based. 
‘‘(ii) 
DETERMINATIONS.—In 
deter-
mining the on-time loan repayment rate for 
a category of educational programs, sub-
section (a)(1) shall be applied— 
‘‘(I) in subparagraph (A), by sub-
stituting ‘received for enrollment in the 
category of educational programs for 
which such rate is being determined’ 
for ‘received for attendance at the in-
stitution’; and 
‘‘(II) as if the following were 
added at the end of such paragraph: 
‘‘ ‘(C) MULTIPLE
CATEGORIES
OF
EDU-
CATIONAL PROGRAMS.—In the case of a student 
who has received a covered loan for enrollment in 
more than one category of educational programs, 
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846 
the student (and such student’s subsequent repay-
ment or monthly payment on such covered loan) 
is attributed to the last category of educational 
programs in which such student was enrolled.’. 
‘‘(D) APPEALS.—Not later than 60 days of 
receiving notification from the Secretary of the 
loss of eligibility under subparagraph (A), the 
institution may appeal the loss of its eligibility 
under subsection (c). 
‘‘(2) REPAYMENT MANAGEMENT PLAN REQUIRE-
MENT FOR CERTAIN INSTITUTIONS.— 
‘‘(A) IN GENERAL.—Beginning on the date 
that is one year after the date on which the final 
on-time repayment rates are published by the 
Secretary for not less than 3 fiscal years, an in-
stitution shall be subject to the requirements of 
subparagraph (B), if the Secretary determines 
the following with respect to such institution— 
‘‘(i) the on-time repayment rate of such 
institution is less than any threshold on- 
time repayment rate specified under para-
graph (1)(B) for period determined appro-
priate by the Secretary for such threshold 
rate; and 
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847 
‘‘(ii) for each of the 3 most recent in-
stitutional fiscal years for which the institu-
tion submits to the Secretary disclosures on 
the expenditures of the institution on in-
struction 
for 
purposes 
of 
section 
132(i)(1)(AA), the amount expended by the 
institution for instructional spending is 
greater than or equal to an amount equal to 
1/3 of the amount of revenue derived from 
tuition and fees. 
‘‘(B) REPAYMENT MANAGEMENT PLAN.—An 
institution subject to the requirements of this 
subparagraph, shall— 
‘‘(i) not later than 6 months after the 
determination under subparagraph (A), 
submit to the Secretary a repayment man-
agement plan which the Secretary, in the 
Secretary’s discretion, after consideration of 
the institution’s history, resources, expendi-
tures, and targets for improving on-time re-
payment, determines— 
‘‘(I) is acceptable and is in the 
best interests of students; and 
‘‘(II) provides reasonable assur-
ance that the institution will have an 
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848 
on-time repayment rate that exceeds 
the on-time threshold referred to in 
subparagraph (A)(i) after a reasonable 
period; 
‘‘(ii) engage an independent third- 
party to provide technical assistance in im-
plementing such repayment management 
plan; and 
‘‘(iii) provide to the Secretary, on an 
annual basis or at such other intervals as 
the Secretary may require, evidence of on- 
time repayment rate improvement and suc-
cessful implementation of such repayment 
management plan. 
‘‘(c) APPEALS.— 
‘‘(1) SECRETARIAL
REQUIREMENTS.—The Sec-
retary shall issue a decision on any appeal submitted 
by an institution under subsection (b)(1)(D) not later 
than 45 days after its submission. Such decision may 
permit the institution to continue to participate in a 
program under this title if— 
‘‘(A) the institution demonstrates to the sat-
isfaction of the Secretary that the Secretary’s 
calculation of its on-time repayment rate is not 
accurate, and that recalculation would increase 
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849 
its on-time repayment rate above the applicable 
threshold percentage specified in subsection 
(b)(1)(B) for the period on which the determina-
tion of the institution’s ineligibility under sub-
section (b)(1)(A) was based; 
‘‘(B) the institution demonstrates to the sat-
isfaction of the Secretary that there has been im-
proper loan servicing, which, if remedied, would 
increase its on-time repayment rate above the 
applicable threshold percentage specified in sub-
section (b)(1)(B) for the period on which the de-
termination of the institution’s ineligibility 
under subsection (b)(1)(A) was based; 
‘‘(C) there are, in the judgment of the Sec-
retary, exceptional mitigating circumstances that 
would make the application of this section in-
equitable; 
‘‘(D) for each of the 3 most recent fiscal 
years for which the institution submits to the 
Secretary disclosures on expenditures for pur-
poses of section 132(i)(1)(AA), the sum of the ex-
penditures on instruction and student services of 
the institution is equal to an amount greater 
than or equal to 50 percent of the institution’s 
revenues derived from tuition and fees, and the 
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850 
institution complies with the requirements of 
subsection (b)(2)(B). 
‘‘(2) INSTITUTIONAL REQUIREMENTS.—If an in-
stitution continues to participate in a program under 
this title, and the institution’s appeal of the loss of 
eligibility is unsuccessful, the institution shall be re-
quired to pay to the Secretary an amount equal to the 
amount of interest, special allowance, reinsurance, 
and any related payments made by the Secretary (or 
which the Secretary is obligated to make) with respect 
to covered loans to students attending, or planning to 
attend, that institution during the pendency of such 
appeal. During such appeal, the Secretary may per-
mit the institution to continue to participate in a 
program under this title. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
regulations designed to prevent an institution from evading 
the application to that institution of a on-time repayment 
rate determination under this section through the use of 
such measures as branching, consolidation, change of own-
ership or control, or any similar device. 
‘‘(e) PUBLICATION.—The Secretary shall publish not 
less often than once every fiscal year (by September 30 of 
each year) a report— 
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851 
‘‘(1) for each category of institution, and for 
each institution for which an on-time repayment rate 
is determined under this section— 
‘‘(A) with respect to the preceding fiscal 
year— 
‘‘(i) the on-time repayment rate for 
such institution; 
‘‘(ii) the on-time repayment rate for 
each category of educational programs; and 
‘‘(iii) the number of students on which 
the rates described in clauses (i) and (ii) 
are based; and 
‘‘(B) for each of the 3 most recent fiscal 
years for which the institution submits to the 
Secretary disclosures on expenditures for pur-
poses of section 132(i)(1)(AA)— 
‘‘(i) the amount of the institution’s ex-
penditures on instruction; 
‘‘(ii) the amount of revenue derived 
from tuition and fees by the institution; 
and 
‘‘(iii) the quotient of the amount de-
scribed in clause (i) divided by the amount 
described in clause (ii), expressed as a per-
centage; and 
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853 
‘‘(A) IN GENERAL.—The term ‘covered loan’ 
means a loan made, insured, or guaranteed 
under part B or D (other than an excepted 
PLUS Loan or an excepted consolidation Loan). 
‘‘(B) EXCEPTED
PLUS
LOAN; EXCEPTED 
CONSOLIDATION
LOAN.—The 
terms 
‘excepted 
PLUS Loan’ and ‘excepted consolidation Loan’ 
have the meanings given such terms in section 
493C(a). 
‘‘(4) STUDENT
SERVICES.—The term ‘student 
services’ has the meaning given the term in section 
498E(a)(2).’’. 
PART H—PROGRAM INTEGRITY 
Subpart 1—State Role 
SEC. 4701. STATE RESPONSIBILITIES. 
Section 495(a) of the Higher Education Act of 1965 
(20 U.S.C. 1099a(a)) is amended— 
(1) in paragraph (2)— 
(A) by inserting ‘‘and the accrediting agen-
cy or association involved’’ after ‘‘Secretary’’; 
(B) by striking ‘‘revokes a license’’ and in-
serting ‘‘takes a negative action, or revokes a li-
cense,’’; and 
(C) by striking ‘‘and’’ at the end; 
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(2) in paragraph (3), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(4) evaluate each institution of higher edu-
cation located in the State or seeking authorization to 
operate in the State to determine if such institution 
of higher education meets the applicable standards of 
the State relating to— 
‘‘(A) facilities, equipment, and supplies; 
and 
‘‘(B) measures of program length and other 
factors relevant for a student or graduate to re-
ceive a professional license from the State; 
‘‘(5) certify to the Secretary that the State 
shall— 
‘‘(A) accept student complaints from— 
‘‘(i) all students attending an institu-
tion of higher education located in the 
State; and 
‘‘(ii) all students who are residents of 
the State and attend an institution of high-
er education not located in the State 
through correspondence or distance edu-
cation; and 
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855 
‘‘(B) report to the Secretary and accrediting 
bodies— 
‘‘(i) relevant student complaints re-
ceived by the State, including multiple stu-
dent complaints that present consistent alle-
gations with respect to an institution of 
higher education in the State; and 
‘‘(ii) such other complaints the Sec-
retary determines necessary; and 
‘‘(6) establish policies and procedures to antici-
pate and respond to the closure of an institution of 
higher education, which shall include— 
‘‘(A) the maintenance of sufficient cash re-
serves (or an equivalent alternative) in accord-
ance with regulations issued pursuant to section 
498(c)(6)(A) to ensure repayment of any re-
quired refunds; 
‘‘(B) a plan to address ensuring custodial 
record-keeping of institutional records and stu-
dent transcripts in the case of such a closure; 
‘‘(C) the maintenance of contact informa-
tion adequate to ensure communication directly 
between the State and each student in the case 
of such a closure; and 
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856 
‘‘(D) in the case of an institution of higher 
education located in the State, to develop a proc-
ess to identify when a campus of such institution 
of higher education closes in any State.’’. 
Subpart 2—Accrediting Agency Recognition 
SEC. 4711. ACCREDITING AGENCY RECOGNITION OF ELIGI-
BLE JOB TRAINING PROGRAMS. 
Section 496(a)(4) of the Higher Education Act of 1965 
(20 U.S.C. 1099b(a)(4)) is amended— 
(1) in subparagraph (A), by striking ‘‘and’’ after 
the semicolon; and 
(2) by adding at the end the following: 
‘‘(C) if such agency or association has or 
seeks to include within its scope of recognition 
the evaluation of the quality of institutions of 
higher education participating in the job train-
ing Federal Pell Grant program under section 
401(k), such agency or association shall, in addi-
tion to meeting the other requirements of this 
subpart, demonstrate to the Secretary that, with 
respect to such eligible job training program— 
‘‘(i) the agency or association’s stand-
ards include a process for determining if the 
institution has the capability to effectively 
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857 
provide an eligible job training program; 
and 
‘‘(ii) the agency or association requires 
a demonstration that the program— 
‘‘(I) has identified each recognized 
postsecondary credential offered and 
the corresponding industry or sector 
partnership that actively recognizes 
each credential in the State or local 
area in which the job training pro-
gram is provided; and 
‘‘(II) provides the academic con-
tent and amount of instructional time 
that is sufficient to— 
‘‘(aa) meet the hiring re-
quirements of potential employers; 
and 
‘‘(bb) satisfy any applicable 
educational prerequisite require-
ment for professional license or 
certification, so that a student 
who completes the program and 
seeks employment is qualified to 
take any licensure or certification 
examination needed to practice or 
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858 
find employment in such sectors 
or occupations; and’’. 
SEC. 4712. ACCREDITING AGENCY RECOGNITION OF INSTI-
TUTIONS ENROLLING INCARCERATED INDI-
VIDUALS. 
Section 496(a)(4) of the Higher Education Act of 1965 
(20 U.S.C. 1099b(a)(4)) is further amended by adding at 
the end the following: 
‘‘(D) if such agency or association accredits 
or seeks to accredit institutions of higher edu-
cation that seek to award Federal Pell Grants 
under section 401(n) to incarcerated individuals 
for a course of study at such institution, such 
agency or association shall, in addition to meet-
ing the other requirements of this subpart, dem-
onstrate to the Secretary that— 
‘‘(i) the agency or association’s stand-
ards include a process for determining if the 
institution has the capability to effectively 
offer such a course of study to incarcerated 
individuals; and 
‘‘(ii) the agency or association requires 
a demonstration that— 
‘‘(I) such course of study is taught 
by faculty with experience and creden-
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860 
upon reentry (including career and 
academic advising);’’. 
SEC. 4713. REQUIREMENTS FOR ACCREDITING AGENCY 
RECOGNITION. 
(a) WORKING GROUP; RULEMAKING.— 
(1) WORKING GROUP.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of the Act, the Sec-
retary of Education shall establish a working 
group comprised of individuals specified in sub-
paragraph (B), to establish a common glossary 
of measures (and a definition for each such 
measure)— 
(i) that, for purposes of section 
496(a)(5)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1099b(a)(5)(A))— 
(I) accrediting agencies or asso-
ciations may use to assess each of the 
outcomes described in subparagraph 
(C); 
(II) shall not restrict accrediting 
agencies or associations from estab-
lishing, in accordance with such sec-
tion 496(a)(5)(A), other measures to 
assess such outcomes; 
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861 
(III) shall not include perform-
ance benchmarks or other thresholds 
with respect to such measures; and 
(IV) provides accrediting agencies 
or associations described in subpara-
graphs (A)(i) and (C)(ii) of section 
496(a)(2) (20 U.S.C. 1099b(a)(2)) with 
enough flexibility for adequate assess-
ment of such outcomes; and 
(ii) that may include measures (and 
definitions for such measures) set forth 
under the Integrated Postsecondary Edu-
cation Data Survey, the postsecondary data 
system established under section 132(l), or a 
successor system; 
(iii) to which future working groups 
which meet the requirements of this para-
graph may add additional measures; and 
(iv) that the Secretary of Education 
shall not have the authority to approve. 
(B) COMPOSITION.—The working group es-
tablished under subparagraph (A) shall be of suf-
ficient size to ensure that a full range of relevant 
accrediting agencies and institutions are rep-
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862 
resented on the panel and shall include, at a 
minimum, the following members: 
(i) Representatives of national, re-
gional, and specialized accrediting agencies 
and associations that shall be nominated for 
inclusion on the panel by such representa-
tives. 
(ii) Representatives of diverse postsec-
ondary institutions, which shall include 
representation between 2-year and 4-year 
institutions of higher education, and from 
public, nonprofit, and proprietary institu-
tions of higher education, including minor-
ity-serving institutions. 
(iii) The Commissioner of the National 
Center for Education Statistics or the Com-
missioner’s representative. 
(iv) Student advocate representatives 
familiar with the accreditation process. 
(C) OUTCOMES.—The outcomes described in 
this subparagraph are as follows: 
(i) Completion (which may include 
measures such as graduation rates and 
rates of transfer). 
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863 
(ii) Progress toward completion (which 
may include measures such as retention 
rates and credit accumulation). 
(iii) Workforce participation (which 
may include measures such as rates of licen-
sure and job placement). 
(2) RULEMAKING.—Not later than 1 year after 
the date of enactment of this Act, the Secretary of 
Education shall initiate a negotiated rule-making— 
(A) to develop procedures for identifying the 
representative member institutions an accred-
iting agency or association shall use to dem-
onstrate to the Secretary, for purposes of the Sec-
retary’s review and evaluation of the perform-
ance of such agency or association under section 
496(n)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1099b(n)(1)), as amended by this sec-
tion, that such accrediting agency or associa-
tion— 
(i) consistently applies and enforces 
standards; and 
(ii) effectively evaluates the quality of 
education or training offered by the institu-
tions of higher education accredited by such 
agency or association; and 
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864 
(B) for purposes of section 496 of the High-
er Education Act of 1965 (20 U.S.C. 1099b), as 
amended by this section, to— 
(i) establish definitions for the terms 
related to sanctions, adverse actions, and 
any other action that an accrediting agency 
or association may take with respect to an 
institution of higher education under such 
section (including monitoring, notice, warn-
ing, probation, show cause, denial, with-
drawal, suspension, revocation, accredita-
tion, and preaccreditation); and 
(ii) in a case in which any action de-
fined in clause (i) is taken by an accred-
iting agency or association with respect to 
an institution of higher education, establish 
notice and disclosure requirements for such 
agency or association and institution of 
higher education with respect to the public 
(including students), as long as such re-
quirements are consistent with the require-
ments of subsections (a)(7) and (c)(7) of sec-
tion 496 of the Higher Education Act of 
1965 (20 U.S.C. 1099b). 
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865 
(b) AMENDMENTS.—Section 496 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1099b) is further amended— 
(1) in subsection (a)— 
(A) in paragraph (3)(A), by inserting before 
the semicolon at the end the following: ‘‘, and 
any institution described in clauses (i) through 
(v) of subsection (b)(1)(B)’’; 
(B) in paragraph (5), by striking subpara-
graphs (A) through (J) and inserting the fol-
lowing: 
‘‘(A) success with respect to student achieve-
ment in relation to the institution’s mission (ex-
cept that the agencies and associations described 
in paragraph (2)(A)(ii) shall not be subject to 
this subparagraph), which— 
‘‘(i) shall be assessed using at least 1 
measure selected by the agency or associa-
tion from the glossary of measures estab-
lished and defined under section 4713(a)(1) 
of the College Affordability Act, or estab-
lished by the agency or association, for each 
of the following outcomes— 
‘‘(I) completion; 
‘‘(II) progress toward completion; 
and 
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