(B) in the case of a loan held by the Sec-
retary, cancelling such amount. 
(3) APPLICATION OF REPAID AMOUNTS.—If the 
amount repaid under paragraph (2) is less than the 
principal and accrued interest on any qualified stu-
dent loan, such amount shall be applied according to 
the specified priorities of the eligible individual. 
(4) REPORTS BY HOLDERS.—Any holder receiv-
ing a loan payment pursuant to this subsection shall 
submit to the Secretary such information as the Sec-
retary may require to verify that such payment was 
applied in accordance with this subsection and any 
regulations prescribed to carry out this subsection. 
(5) NOTIFICATION OF INDIVIDUAL.—The Sec-
retary, upon repaying the education benefit of an eli-
gible individual, shall notify the individual of the 
amount paid for each outstanding loan and the date 
of payment. 
(6) AUTHORITY TO AGGREGATE PAYMENTS.— 
The Secretary may, by regulation, provide for the 
aggregation of payments to holders under this sub-
section. 
(7) DEFINITION OF HOLDER.—As used in this 
subsection, the term ‘‘holder’’ with respect to any 
qualified student loan means the original lender or, 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
if the loan is subsequently sold, transferred, or as-
signed to some other person, and such other person 
acquires a legally enforceable right to receive pay-
ments from the borrower, such other person. 
(c) USE OF EDUCATION BENEFIT FOR EDUCATIONAL 
EXPENSES TO UPSKILL.— 
(1) APPLICATION BY ELIGIBLE INDIVIDUAL.— 
An eligible individual who desires to apply the edu-
cation benefit of the individual under this section to 
the payment of qualified educational expenses shall, 
on a form prescribed by the Secretary, submit an 
application to the eligible institution in which the 
student will be enrolled that contains such informa-
tion as the Secretary may require to verify the indi-
vidual’s eligibility for such benefit. 
(2) SUBMISSION OF REQUESTS FOR PAYMENT 
BY INSTITUTIONS.—An eligible institution that re-
ceives one or more applications that comply with 
paragraph (1) shall submit to the Secretary a state-
ment, in a manner prescribed by the Secretary, 
that— 
(A) identifies each eligible individual filing 
an application under paragraph (1) for a dis-
bursement of the individual’s education benefit 
under this subsection; 
VerDate Sep 11 2014 
20:27 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
(B) specifies the amounts for which such 
eligible individuals are, consistent with para-
graph (6), qualified for disbursement under this 
subsection; 
(C) certifies that— 
(i) in the case of an eligible institution 
that is an institution of higher education— 
(I) the institution has in effect a 
program 
participation 
agreement 
under section 487 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1094); 
and 
(II) the institution’s eligibility to 
participate in any of the programs 
under title IV of such Act (20 U.S.C. 
1070 et seq.) has not been limited, 
suspended, or terminated; and 
(ii) in the case of an eligible institu-
tion that is not an institution of higher 
education, meets the requirements of sub-
section (d)(1)(B); and 
(D) contains such provisions concerning fi-
nancial compliance as the Secretary may re-
quire. 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
(3) DISBURSEMENT OF PAYMENTS.—Upon re-
ceipt of a statement from an eligible institution that 
complies with paragraph (2), the Secretary shall dis-
burse the total amount of the education benefit for 
which eligible individuals who have submitted appli-
cations to that institution under paragraph (1) are 
scheduled to receive. Such disbursement shall be 
made by check or other means that is payable to the 
institution and requires the endorsement or other 
certification by the eligible individual. 
(4) REFUND RULES.—The Secretary shall, by 
regulation, provide for the refund to the Secretary 
(and the crediting to the education benefit of an eli-
gible individual) of amounts disbursed to institutions 
for the benefit of eligible individuals who withdraw 
or otherwise fail to complete the period of enrollment 
for which the assistance was provided. Such regula-
tions shall be consistent with the fair and equitable 
refund policies required of institutions pursuant to 
section 484B of the Higher Education Act of 1965 
(20 U.S.C. 1091b). Amounts refunded to the Sec-
retary pursuant to this paragraph may be used by 
the Secretary to fund additional education benefits 
for eligible individuals under this Act. 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
(5) MAXIMUM BENEFIT FOR A PERIOD OF EN-
ROLLMENT.—The portion of an eligible individual’s 
total available education benefit that may be dis-
bursed under this subsection for any period of en-
rollment shall not exceed the difference between— 
(A) the tuition and fees charged to the eli-
gible individual for such period of enrollment; 
and 
(B) the student’s estimated financial as-
sistance for such period under part A of title IV 
of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.). 
(d) DEFINITIONS.—In this section: 
(1) ELIGIBLE INSTITUTION.—The term ‘‘eligi-
ble institution’’ means— 
(A) an institution of higher education— 
(i) that has the meaning given such 
term in section 101 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001); or 
(ii) that is a provider on a list of eligi-
ble providers of training services under 
section 122(d) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3152(d)); 
or 
(B) an entity that offers a program— 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
(i) that is provided by a provider on 
a list of eligible providers of training serv-
ices under section 122(d) of the Workforce 
Innovation 
and 
Opportunity 
Act 
(29 
U.S.C. 3152(d)); or 
(ii) that is provided by a provider that 
is not on a list described in clause (i) but 
that, upon petition to the Secretary of 
Labor by an eligible individual, the Sec-
retary determines based on indicators of 
performance under section 116 of the 
Workforce Innovation and Opportunity Act 
(29 U.S.C. 3141) has, for at least the five 
previous years, a record of good outcomes 
as defined by the State plan submitted 
under section 102 or 103 of such Act (29 
U.S.C. 3112; 3113) with respect to such 
provider. 
(2) QUALIFIED EDUCATIONAL EXPENSES.—The 
term ‘‘qualified educational expenses’’ means the 
cost of tuition and fees charged to an eligible indi-
vidual for full-time or part-time enrollment at an eli-
gible institution in an education or training program 
that results in a recognized postsecondary credential. 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
(3) QUALIFIED
STUDENT
LOANS.—The term 
‘‘qualified student loans’’ means— 
(A) any loan made, insured, or guaranteed 
under part B, part D, or part E of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.) before the date of enactment of 
this Act, including— 
(i) loans made to a parent borrower 
on behalf of a dependent student under 
part B or part D of such Act, if such par-
ent borrower is an eligible individual under 
this Act; 
(ii) consolidation loans made under 
such Act; and 
(iii) any grant treated as a loan under 
such part D in accordance with section 
258(e), section 420M(c), or section 807(d) 
of such Act; 
(B) a private education loan, as defined in 
section 140(a) of the Truth in Lending Act (15 
U.S.C. 1650(a)), that— 
(i) was expressly for the cost of at-
tendance (as defined in section 472) at an 
institution of higher education partici-
pating in a loan program under part B, 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS
part D, or part E of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et 
seq.), as of the date that the loan was dis-
bursed; and 
(ii) was made before the date of en-
actment of this Act; and 
(C) any loan made pursuant to title VII or 
VIII of the Public Health Service Act (42 
U.S.C. 292a et seq.) before the date of the en-
actment of this Act. 
(4) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘‘recognized postsecondary creden-
tial’’ has the meaning given such term in section 3 
of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3102). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
Æ 
VerDate Sep 11 2014 
05:21 Oct 13, 2021
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6301
E:\BILLS\H5523.IH
H5523
kjohnson on DSK79L0C42PROD with BILLS