I 
114TH CONGRESS 
1ST SESSION H. R. 2364 
To provide for institutional risk-sharing in the Federal student loan programs. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2015 
Mr. CARNEY introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To provide for institutional risk-sharing in the Federal 
student loan programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protect Student Bor-
rowers Act of 2015’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to protect student bor-
rowers by requiring institutions of higher education to as-
sume some of the risk of default for student loans under 
part D of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1087a et seq.). 
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SEC. 3. INSTITUTIONAL REBATES TO THE DEPARTMENT OF 
EDUCATION FOR DEFAULTED LOANS. 
Section 454 of the Higher Education Act of 1965 (20 
U.S.C. 1087d) is amended— 
(1) in subsection (a)— 
(A) in paragraph (5), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (6), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(7) provide that the institution accepts the in-
stitutional risk-sharing requirements under sub-
section (d), if applicable.’’; and 
(2) by adding at the end the following: 
‘‘(d) INSTITUTIONAL RISK-SHARING FOR STUDENT 
LOAN DEFAULTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), 
each institution of higher education participating in 
the direct student loan program under this part for 
a fiscal year that has a rate of participation in such 
program for all students enrolled at that institution 
for such fiscal year that is 25 percent or higher shall 
remit, at such times as the Secretary may specify, 
a risk-sharing payment based on a percentage of the 
volume of student loans under this part that are in 
default, as determined under paragraph (2). 
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‘‘(2) DETERMINATION OF RISK-SHARING PAY-
MENTS.—Subject to paragraph (3), with respect to 
each fiscal year, an institution of higher education 
described in paragraph (1) that has a cohort default 
rate (as defined in section 435(m))— 
‘‘(A) that is 30 percent or higher for the 
most recent fiscal year for which data are avail-
able, shall pay to the Secretary for the fiscal 
year an amount that is equal to 20 percent of 
the total amount (including interest and collec-
tion fees) of loans made under this part to stu-
dents who are in default for such most recent 
fiscal year for which data are available; 
‘‘(B) that is lower than 30 percent but not 
lower than 25 percent for the most recent fiscal 
year for which data are available, shall pay to 
the Secretary for the fiscal year an amount that 
is equal to 15 percent of the total amount (in-
cluding interest and collection fees) of loans 
made under this part to students who are in de-
fault for such most recent fiscal year for which 
data are available; 
‘‘(C) that is lower than 25 percent but not 
lower than 20 percent for the most recent fiscal 
year for which data are available, shall pay to 
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the Secretary for the fiscal year an amount that 
is equal to 10 percent of the total amount (in-
cluding interest and collection fees) of loans 
made under this part to students who are in de-
fault for such most recent fiscal year for which 
data are available; and 
‘‘(D) that is lower than 20 percent but not 
lower than 15 percent for the most recent fiscal 
year for which data are available, shall pay to 
the Secretary for the fiscal year an amount that 
is equal to 5 percent of the total amount (in-
cluding interest and collection fees) of loans 
made under this part to students who are in de-
fault for such most recent fiscal year for which 
data are available. 
‘‘(3) WAIVER
AND
REDUCED
RISK-SHARING 
PAYMENTS.— 
‘‘(A) WAIVER.—The Secretary shall waive 
the risk-sharing payments described in para-
graph (1) for an institution described in para-
graph (2)(D) that meets the requirements of 
subparagraph (D). 
‘‘(B) 
REDUCED
RISK-SHARING
PAY-
MENTS.—If an institution has in place a stu-
dent loan management plan described in sub-
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