TITLE I—ACCREDITATION 
REFORM 
SEC. 101. ACCREDITATION REFORM. 
(a) DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—Section 102(a) of the Higher Education Act of 
1965 (20 U.S.C. 1002(a)) is amended— 
(1) by redesignating paragraphs (5) and (6) as 
paragraphs (6) and (7), respectively; 
(2) in paragraph (1), in the matter preceding 
subparagraph (A), by striking ‘‘Subject to para-
graphs (2) through (4)’’ and inserting ‘‘Subject to 
paragraphs (2) through (5)’’; 
(3) in paragraph (1)— 
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; and 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) if accredited by an authorized accred-
itation authority in a State that has an alter-
native accreditation agreement with the Sec-
retary, as described in paragraph (5)— 
‘‘(i) an institution that provides post-
secondary education; 
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‘‘(ii) a postsecondary apprenticeship 
program; or 
‘‘(iii) 
a 
postsecondary 
education 
course or program provided by an institu-
tion of postsecondary education, a non-
profit organization, or a for-profit organi-
zation or business;’’; and 
(4) by inserting after paragraph (4), the fol-
lowing: 
‘‘(5) STATE ALTERNATIVE ACCREDITATION.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, a State may establish an 
alternative accreditation system for the purpose 
of establishing institutions that provide postsec-
ondary education and postsecondary education 
courses or programs as eligible for funding 
under title IV if the State enters into an agree-
ment with the Secretary for the establishment 
of the alternative accreditation system. Such in-
stitutions, courses, or programs may include— 
‘‘(i) institutions that provide postsec-
ondary education; 
‘‘(ii) 
postsecondary 
apprenticeship 
programs; 
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‘‘(iii) any other postsecondary edu-
cation course or program offered at an in-
stitution of postsecondary education, a 
nonprofit organization, or a for-profit orga-
nization or business; and 
‘‘(iv) any of the entities described in 
clauses (i) through (iii) that do not award 
a postsecondary certification, credential, or 
degree, provided that such entity provides 
credit that will apply toward a postsec-
ondary certification, credential, or degree. 
‘‘(B) 
ALTERNATIVE
ACCREDITATION 
AGREEMENT.—The 
alternative 
accreditation 
agreement described in subparagraph (A) shall 
include the following: 
‘‘(i) The designation of one or more 
authorized accrediting entities within the 
State, such as the State Department of 
Education, another State agency, an indus-
try-specific accrediting agency, or another 
entity, and an explanation of the process 
through which the State will select such 
authorized accrediting entities. 
‘‘(ii) The standards or criteria that an 
institution that provides postsecondary 
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education and a postsecondary education 
course or program must meet in order to— 
‘‘(I) receive an initial accredita-
tion as part of the alternative accredi-
tation system; and 
‘‘(II) maintain such accredita-
tion. 
‘‘(iii) A description of the appeals 
process through which an institution that 
provides postsecondary education and a 
postsecondary education course or program 
may appeal to an authorized accrediting 
entity if such institution, course, or pro-
gram is denied accreditation under the 
State alternative accreditation system. 
‘‘(iv) Each authorized accrediting en-
tity’s policy regarding the transfer of cred-
its between institutions that provide post-
secondary education and postsecondary 
education courses or programs within the 
State that are accredited as part of the al-
ternative accreditation system. 
‘‘(v) The Secretary’s reporting re-
quirements for the State regarding the 
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State alternative accreditation system, in-
cluding— 
‘‘(I) the contents of reports that 
must be submitted to the Secretary, 
which may include information such 
as— 
‘‘(aa) in the case of a post-
secondary education course or 
program 
that 
is 
accredited 
through the State alternative ac-
creditation system— 
‘‘(AA) the number and 
percentage of students who 
successfully complete each 
such 
postsecondary 
edu-
cation course or program; 
and 
‘‘(BB) the number and 
percentage of students who 
successfully obtain a post-
secondary certification, cre-
dential, 
or 
degree 
using 
credit obtained from each 
such 
postsecondary 
edu-
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cation course or program; 
and 
‘‘(bb) in the case of an insti-
tution 
that 
provides 
postsec-
ondary education that is accred-
ited through the State alternative 
accreditation system— 
‘‘(AA) the number and 
percentage of students who 
successfully obtain a post-
secondary certification, cre-
dential, or degree from such 
institution; and 
‘‘(BB) the number and 
percentage of students who 
do not successfully obtain a 
postsecondary 
certification, 
credential, or degree from 
such institution but do ob-
tain credit from such insti-
tution toward a postsec-
ondary degree, credential, or 
certification; 
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‘‘(II) the frequency with which 
such reports must be submitted to the 
Secretary; and 
‘‘(III) any requirements for third 
party verification of information con-
tained in such reports. 
‘‘(vi) The State policy regarding pub-
lic accessibility to certain information re-
lating to institutions that provide postsec-
ondary education and postsecondary edu-
cation courses and programs accredited 
under the State alternative accreditation 
system, including— 
‘‘(I) the information described in 
clause (v)(I); and 
‘‘(II) information about the rates 
of job placement for individuals that 
have graduated from an institution or 
completed a course or program that is 
accredited under the State alternative 
accreditation system, if available. 
‘‘(vii) An assurance by the State that 
under the State alternative accreditation 
system, only institutions that provide post-
secondary education and postsecondary 
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education courses or programs that provide 
credits toward a postsecondary certifi-
cation, credential, or degree (as defined by 
the State in accordance with clause (viii)) 
will be accredited. 
‘‘(viii) The State’s definition of a 
postsecondary certification, credential, or 
degree, as such term applies to the require-
ment described in clause (vii). 
‘‘(ix) A description of the agreements 
that the State will enter into with institu-
tions that provide postsecondary education 
and postsecondary education courses or 
programs that are accredited under the al-
ternative accreditation system to enable 
such institutions, courses, or programs to 
be eligible under a program authorized 
under title IV, for participation in the di-
rect student loan program, and for the 
origination of loans under part D of title 
IV, and how such agreements will operate 
in lieu of the agreements described in sec-
tions 487 and 454. 
‘‘(x) A description of how the State 
will select institutions that provide postsec-
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native accreditation system in the State pursu-
ant to this paragraph, the Secretary shall sub-
mit a list of the reasons for such decision to the 
State. 
‘‘(D) TIME
LIMIT.—Each agreement the 
Secretary enters into for the establishment of 
an alternative accreditation system in a State 
shall be for a period of 10 years.’’. 
(b) TITLE IV ELIGIBILITY REQUIREMENTS.—Part G 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 
493E. 
STATE 
ACCREDITED 
INSTITUTIONS, 
PRO-
GRAMS, OR COURSES. 
‘‘Notwithstanding any other provision of law, an in-
stitution, program, or course that is eligible for funds 
under this title in accordance with section 102(a)(1)(B) 
and meets the requirements of section 102(a)(5) shall not 
be required to meet any other requirements of this title. 
For purposes of this title, such an institution, program, 
or course shall be deemed to be an eligible institution that 
meets the requirements of section 487.’’. 
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TITLE II—TRANSPARENCY IN 
HIGHER EDUCATION 
SEC. 201. TIME FOR TRANSPARENCY IN HIGHER EDU-
CATION. 
(a) IN GENERAL.—Title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.) is amended— 
(1) in section 487(a), by adding at the end the 
following: 
‘‘(30) The institution will publish information 
in compliance with section 493F.’’; and 
(2) in part G, as amended by section 101, by 
adding at the end the following: 
‘‘SEC. 493F. INSTITUTIONAL PUBLICATION OF INFORMA-
TION. 
‘‘(a) PUBLICATION OF INFORMATION.— 
‘‘(1) IN GENERAL.—Each institution of higher 
education participating in a program under this title 
shall publish, on an annual basis and in a readily ac-
cessible format (including online and in an alter-
native format), the information described in para-
graphs (2) and (3). 
‘‘(2) INFORMATION.—Each institution of higher 
education described in paragraph (1) shall publish, 
with respect to the institution as a whole and with 
respect to each program of study offered by the in-
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stitution, the following information for the most re-
cent fiscal year for which the information is avail-
able: 
‘‘(A) For each of the following, the per-
centage and number of students enrolled at the 
institution or in the program of study, as appli-
cable, who receive the following: 
‘‘(i) Federal grant aid, including Fed-
eral Pell Grants under subpart 1 of part 
A, Federal Supplemental Educational Op-
portunity Grants under subpart 3 of part 
A, or any other Federal postsecondary edu-
cation grant aid or subsidy. 
‘‘(ii) Federal student loans, including 
Federal Direct Stafford Loans, Federal 
Direct Unsubsidized Stafford Loans, Fed-
eral Direct PLUS Loans, and Federal Per-
kins Loans. 
‘‘(iii) State grant aid. 
‘‘(iv) Institutional grants. 
‘‘(v) A student loan from a State. 
‘‘(vi) A student loan from another 
source. 
‘‘(B) Student body enrollment status, in-
cluding as a— 
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‘‘(i) first-time, full-time student; 
‘‘(ii) first-time, part-time student; 
‘‘(iii) non-first-time, full-time student; 
and 
‘‘(iv) non-first-time, part-time student. 
‘‘(C) An alumni report that includes the 
following: 
‘‘(i) The percentage of students who 
do not complete the program of study the 
student initially started upon enrollment. 
‘‘(ii) The percentage of students who 
transfer. 
‘‘(iii) The percentage of students who 
complete the program of study the student 
initially started upon enrollment. 
‘‘(iv) The average length of time for a 
student to complete the program of study. 
‘‘(v) The percentage of students who 
continue on to higher levels of education. 
‘‘(vi) The percentage of students who 
are employed, disaggregated by program of 
study. 
‘‘(vii) The number and percentage of 
alumni contacted for such report. 
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‘‘(viii) The response rate of alumni 
contacted for such report. 
‘‘(3) PUBLICATION
OF
DEFAULT
AND
NON-
REPAYMENT RATES.—In addition to the information 
described in paragraph (2), each institution of high-
er education described in paragraph (1) shall pub-
lish, with respect to the institution as a whole and 
with respect to each program of study offered by the 
institution, the following information for the most 
recent fiscal year for which the information is avail-
able: 
‘‘(A) The average amount of total Federal 
student loan debt accrued upon graduation. 
‘‘(B) The average amount of total Federal 
student loan debt accrued by students who 
leave the institution without having graduated. 
‘‘(C) Federal student loan default rate. 
‘‘(D) Federal student loan non-repayment 
rate. 
‘‘(E) Default and non-repayment rate, in-
cluding as a— 
‘‘(i) first-time, full-time student; 
‘‘(ii) first-time, part-time student; 
‘‘(iii) non-first-time, full-time student; 
and 
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‘‘(iv) non-first-time, part-time student. 
‘‘(F) Default and non-repayment rate, of— 
‘‘(i) students who complete a program 
of study; 
‘‘(ii) students who transfer; and 
‘‘(iii) students who do not complete a 
program of study. 
‘‘(b) PRIVACY.— 
‘‘(1) COMPLIANCE WITH FERPA.—In carrying 
out this section, an institution of higher education 
and any personnel of the institution shall not share 
any personally identifiable information and shall act 
in accordance with section 444 of the General Edu-
cation Provisions Act (20 U.S.C. 1232g, commonly 
known as the ‘Family Educational Rights and Pri-
vacy Act of 1974’). 
‘‘(2) PROHIBITION ON USE OF INFORMATION.— 
Information published pursuant to this section shall 
not be used— 
‘‘(A) by a Federal employee, agency, or of-
ficer, or an institution of higher education to 
take action against an individual; and 
‘‘(B) in legal processes or admitted as evi-
dence in any judicial or administrative pro-
ceeding. 
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‘‘(3) PENALTIES.—The Secretary shall establish 
penalties for a violation of paragraph (1) or (2) that 
includes both a monetary fine and up to 5 years in 
prison. 
‘‘(4) AUDITS.—In carrying out this section, the 
State in which the institution of higher education is 
located shall contract with an independent third 
party to conduct audits of the publication of infor-
mation described in subsection (a)(1) to ensure qual-
ity, validity, reliability, and compliance with all Fed-
eral standards of data quality and individual privacy. 
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to authorize or permit the Sec-
retary or any employee or contractor of the Department 
to mandate, direct, or control the selection of practices or 
curriculum by an institution of higher education.’’. 
(b) GAO REPORT.— 
(1) STUDY.—The Comptroller General of the 
United States shall conduct a study that compiles all 
the institutional publication of information pursuant 
to section 493F of the Higher Education Act of 
1965. 
(2) REPORT.—Not later than October 1 of the 
fourth fiscal year after the date of enactment of this 
Act, the Comptroller General of the United States 
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shall submit a report containing the results of the 
study under paragraph (1) to the appropriate com-
mittees of Congress. 
TITLE III—FISCAL 
ACCOUNTABILITY 
SEC. 301. PHASING OUT LOAN FORGIVENESS. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is amended— 
(1) in section 455— 
(A) in subsection (d), by adding at the end 
the following: 
‘‘(6) ELIMINATION OF LOAN FORGIVENESS.— 
Notwithstanding any other provision of this Act, 
with respect to any loan made on or after 6 months 
after the date of enactment of the Higher Education 
Reform and Opportunity Act of 2017, the Secretary 
may not repay or cancel any outstanding balance of 
principal and interest due on the loan for the bor-
rower of the loan pursuant to this subsection.’’; 
(B) in subsection (e), by adding at the end 
the following: 
‘‘(8) ELIMINATION OF LOAN FORGIVENESS.— 
Notwithstanding any other provision of this Act, 
with respect to any loan made on or after 6 months 
after the date of enactment of the Higher Education 
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Reform and Opportunity Act of 2017, the Secretary 
may not repay or cancel any outstanding balance of 
principal and interest due on the loan for the bor-
rower of the loan pursuant to this subsection.’’; and 
(C) in subsection (m), by adding at the 
end the following: 
‘‘(5) ELIMINATION OF LOAN FORGIVENESS.— 
Notwithstanding any other provision of this Act, 
with respect to any loan made on or after 6 months 
after the date of enactment of the Higher Education 
Reform and Opportunity Act of 2017, the Secretary 
may not cancel any outstanding balance of principal 
and interest due on the loan for the borrower of the 
loan pursuant to this subsection.’’; and 
(2) in section 493C, by adding at the end the 
following: 
‘‘(f) ELIMINATION OF LOAN FORGIVENESS.—Not-
withstanding any other provision of this Act, with respect 
to any loan made on or after 6 months after the date of 
enactment of the Higher Education Reform and Oppor-
tunity Act of 2017, the Secretary may not repay or cancel 
any outstanding balance of principal and interest due on 
the loan for the borrower of the loan pursuant to this sec-
tion.’’. 
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TITLE 
IV—SCHOOL 
ACCOUNT-
ABILITY 
FOR 
STUDENT 
LOANS 
SEC. 401. SCHOOL ACCOUNTABILITY FOR STUDENT LOANS. 
Section 487 of the Higher Education Act of 1965 (20 
U.S.C. 1094), as amended by section 201, is further 
amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(31) The institution will pay a default rate 
fine that is determined pursuant to subsection (k).’’; 
and 
(2) by adding at the end the following: 
‘‘(k) DEFAULT RATE FINE.— 
‘‘(1) IN GENERAL.—Each institution described 
in paragraph (2) shall pay to the Secretary a default 
rate fine in accordance with this subsection. 
‘‘(2) APPLICABLE INSTITUTIONS.—An institu-
tion shall pay a default rate fine under this sub-
section for a fiscal year based on the cohort default 
rate on loans made, insured, or guaranteed under 
this title for such fiscal year. 
‘‘(3) FINE.— 
‘‘(A) IN GENERAL.—Each institution de-
scribed in paragraph (2) shall pay a default 
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rate fine for a fiscal year that is equal to 10 
percent of the applicable amount determined 
under subparagraph (B) for such fiscal year. 
‘‘(B) APPLICABLE AMOUNT.—The applica-
ble amount for a fiscal year with respect to an 
institution shall be an amount equal to the dif-
ference between— 
‘‘(i) the amount of defaulted loans 
made, insured, or guaranteed under this 
title for such fiscal year; and 
‘‘(ii) the amount that is equal to the 
product of the average rate of total unem-
ployment in the United States for such fis-
cal year, as determined by the Secretary of 
Labor, and the amount described in clause 
(i). 
‘‘(4) CREDIT
FOR
CERTAIN
INSTITUTIONS.— 
Each institution that is described in paragraph (2) 
shall receive a $400 credit for the fiscal year for 
each graduate of the institution during such fiscal 
year who received a Federal Pell Grant while en-
rolled at the institution. 
‘‘(5) FLEXIBILITY IN COUNSEL AND ADVICE.— 
Notwithstanding any other provision of the Act, the 
Secretary shall grant institutions of higher education 
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flexibility under this Act to counsel and advise stu-
dents on Federal financial aid, including granting 
flexibility for institutions to award less than the 
maximum amount of Federal student aid for which 
an individual is eligible if the cost of tuition, room, 
and board at the institution is less than such max-
imum amount.’’. 
Æ 
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