I 
115TH CONGRESS 
1ST SESSION H. R. 4508 
To support students in completing an affordable postsecondary education 
that will prepare them to enter the workforce with the skills they need 
for lifelong success. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 1, 2017 
Ms. FOXX (for herself and Mr. GUTHRIE) introduced the following bill; which 
was referred to the Committee on Education and the Workforce 
A BILL 
To support students in completing an affordable postsec-
ondary education that will prepare them to enter the 
workforce with the skills they need for lifelong success. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Promoting Real Opportunity, Success, and Prosperity 
through Education Reform Act’’ or the ‘‘PROSPER Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. References. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
Sec. 3. General effective date. 
TITLE I—GENERAL PROVISIONS 
PART A—DEFINITIONS 
Sec. 101. Definition of institution of higher education. 
Sec. 102. Institutions outside the United States. 
Sec. 103. Additional definitions. 
Sec. 104. Regulatory relief. 
PART B—ADDITIONAL GENERAL PROVISIONS 
Sec. 111. Free speech protections. 
Sec. 112. National Advisory Committee on Institutional Quality and Integrity. 
Sec. 113. Repeal of certain reporting requirements. 
Sec. 114. Programs on drug and alcohol abuse prevention. 
Sec. 115. Campus access for religious groups. 
Sec. 116. Secretarial prohibitions. 
Sec. 117. Ensuring equal treatment by governmental entities. 
PART C—COST OF HIGHER EDUCATION 
Sec. 121. College Dashboard website. 
Sec. 122. Net price calculators. 
Sec. 123. Text book information. 
PART D—ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT 
FINANCIAL ASSISTANCE 
Sec. 131. Performance-based organization for the delivery of Federal student fi-
nancial assistance. 
Sec. 132. Administrative data transparency. 
PART E—LENDER AND INSTITUTION REQUIREMENTS RELATING TO 
EDUCATION LOANS 
Sec. 141. Modification of preferred lender arrangements. 
PART F—ADDRESSING SEXUAL ASSAULT 
Sec. 151. Addressing sexual assault. 
TITLE II—EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS 
Sec. 201. Repeal. 
Sec. 202. Grants for access to high-demand careers. 
TITLE III—INSTITUTIONAL AID 
Sec. 301. Strengthening institutions. 
Sec. 302. Strengthening historically Black colleges and universities. 
Sec. 303. Historically Black college and university capital financing. 
Sec. 304. Minority Science and Engineering Improvement Program. 
Sec. 305. Strengthening historically Black colleges and universities and other 
minority-serving institutions. 
Sec. 306. General provisions. 
TITLE IV—STUDENT ASSISTANCE 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
PART A—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF 
HIGHER EDUCATION 
Sec. 401. Federal Pell Grants. 
Sec. 402. Federal TRIO programs. 
Sec. 403. Gaining early awareness and readiness for undergraduate programs. 
Sec. 404. Special programs for students whose families are engaged in migrant 
and seasonal farmwork. 
Sec. 405. Child care access means parents in school. 
Sec. 406. Repeals. 
Sec. 407. Sunset of TEACH grants. 
PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM 
Sec. 421. Federal Direct Consolidation Loans. 
Sec. 422. Loan rehabilitation. 
Sec. 423. Loan forgiveness for teachers. 
Sec. 424. Loan forgiveness for service in areas of national need. 
Sec. 425. Loan repayment for civil legal assistance attorneys. 
Sec. 426. Sunset of cohort default rate and other conforming changes. 
Sec. 427. Closed school and other discharges. 
PART C—FEDERAL WORK-STUDY PROGRAMS 
Sec. 441. Purpose; authorization of appropriations. 
Sec. 442. Allocation formula. 
Sec. 443. Grants for Federal work-study programs. 
Sec. 444. Flexible use of funds. 
Sec. 445. Job location and development programs. 
Sec. 446. Community service. 
Sec. 447. Work colleges. 
PART D—FEDERAL DIRECT STUDENT LOAN PROGRAM 
Sec. 451. Termination of Federal Direct Loan Program under part D and 
other conforming amendments. 
Sec. 452. Borrower defenses. 
Sec. 453. Administrative expenses. 
Sec. 454. Loan cancellation for teachers. 
PART E—FEDERAL ONE LOANS 
Sec. 461. Wind-down of Federal Perkins Loan Program. 
Sec. 462. Federal ONE Loan program. 
PART F—NEED ANALYSIS 
Sec. 471. Cost of attendance. 
Sec. 472. Simplified needs test. 
Sec. 473. Discretion of student financial aid administrators. 
Sec. 474. Definitions of total income and assets. 
PART G—GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE 
Sec. 481. Definitions of academic year and eligible program. 
Sec. 482. Programmatic loan repayment rates. 
Sec. 483. Master calendar. 
Sec. 484. FAFSA Simplification. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6211
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
Sec. 485. Student eligibility. 
Sec. 486. Statute of limitations. 
Sec. 487. Institutional refunds. 
Sec. 488. Information disseminated to prospective and enrolled students. 
Sec. 489. Early awareness of financial aid eligibility. 
Sec. 490. Distance education demonstration programs. 
Sec. 491. Contents of program participation agreements. 
Sec. 492. Regulatory relief and improvement. 
Sec. 493. Transfer of allotments. 
Sec. 494. Administrative expenses. 
Sec. 494A. Repeal of advisory committee. 
Sec. 494B. Regional meetings and negotiated rulemaking. 
Sec. 494C. Deferral of loan repayment following active duty. 
Sec. 494D. Contracts; matching program. 
PART H—PROGRAM INTEGRITY 
Sec. 495. Repeal of and prohibition on State authorization regulations. 
Sec. 496. Recognition of accrediting agency or association. 
Sec. 497. Eligibility and certification procedures. 
TITLE V—DEVELOPING INSTITUTIONS 
Sec. 501. Hispanic-serving institutions. 
Sec. 502. Promoting postbaccalaureate opportunities for Hispanic Americans. 
Sec. 503. General provisions. 
TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 
Sec. 601. International and foreign language studies. 
Sec. 602. Business and international education programs. 
Sec. 603. Repeal of assistance program for Institute for International Public 
Policy. 
Sec. 604. General provisions. 
TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT 
PROGRAMS 
Sec. 701. Graduate education programs. 
Sec. 702. Repeal of Fund for the Improvement of Postsecondary Education. 
Sec. 703. Programs for students with disabilities. 
Sec. 704. Repeal of college access challenge grant program. 
TITLE VIII—OTHER REPEALS 
Sec. 801. Repeal of additional programs. 
TITLE IX—AMENDMENTS TO OTHER LAWS 
PART A—EDUCATION OF THE DEAF ACT OF 1986 
Sec. 901. Education of the Deaf Act of 1986. 
PART B—TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE 
ACT OF 1978; DINE′ COLLEGE ACT 
Sec. 911. Tribally Controlled Colleges and Universities Assistance Act of 1978. 
Sec. 912. Dine′ College Act. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6211
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
SEC. 2. REFERENCES. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.). 
SEC. 3. GENERAL EFFECTIVE DATE. 
Except as otherwise provided in this Act or the 
amendments made by this Act, this Act and the amend-
ments made by this Act shall take effect on the date of 
enactment of this Act. 
TITLE I—GENERAL PROVISIONS 
PART A—DEFINITIONS 
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION. 
Part A of title I (20 U.S.C. 1001 et seq.) is amended 
by striking section 101 (20 U.S.C. 1001) and inserting 
the following: 
‘‘SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION. 
‘‘(a) INSTITUTION
OF HIGHER EDUCATION.—For 
purposes of this Act, the term ‘institution of higher edu-
cation’ means an educational institution in any State 
that— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
‘‘(1) admits as regular students only persons 
who— 
‘‘(A) have a certificate of graduation from 
a school providing secondary education, or the 
recognized equivalent of such a certificate, or 
who meet the requirements of section 484(d); 
‘‘(B) are beyond the age of compulsory 
school attendance in the State in which the in-
stitution is located; or 
‘‘(C) will be dually or concurrently enrolled 
in the institution and a secondary school; 
‘‘(2) is legally authorized by the State in which 
it maintains a physical location to provide a program 
of education beyond secondary education; 
‘‘(3)(A) is accredited by a nationally recognized 
accrediting agency or association; or 
‘‘(B) if not so accredited, is an institution that 
has been granted preaccreditation status by such an 
agency or association that has been recognized by 
the Secretary for the granting of preaccreditation 
status, and the Secretary has determined that there 
is satisfactory assurance that the institution will 
meet the accreditation standards of such an agency 
or association within a reasonable time; and 
‘‘(4) provides— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
‘‘(A) an educational program for which the 
institution awards a bachelor’s degree, graduate 
degree, or professional degree; 
‘‘(B) not less than a 2-year educational 
program which is acceptable for full credit to-
wards a bachelor’s degree; or 
‘‘(C) a non-degree program leading to a 
recognized educational credential that meets the 
definition of an eligible program under section 
481(b). 
‘‘(b) ADDITIONAL LIMITATIONS.— 
‘‘(1) PROPRIETARY INSTITUTIONS OF HIGHER 
EDUCATION.— 
‘‘(A) LENGTH OF EXISTENCE.—A propri-
etary institution shall not be considered an in-
stitution of higher education unless such insti-
tution has been in existence for at least 2 years. 
‘‘(B) INSTITUTIONAL
INELIGIBILITY
FOR 
MINORITY SERVING INSTITUTION PROGRAMS.— 
A proprietary institution shall not be considered 
an institution of higher education for the pur-
poses of any program under title III or V. 
‘‘(2) POSTSECONDARY
VOCATIONAL
INSTITU-
TIONS.—A nonprofit or public institution that offers 
only non-degree programs described in subsection 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
(a)(4)(C) shall not be considered an institution of 
higher education unless such institution has been in 
existence for at least 2 years. 
‘‘(3) LIMITATIONS BASED ON MANAGEMENT.— 
An institution shall not be considered an institution 
of higher education if— 
‘‘(A) the institution, or an affiliate of the 
institution that has the power, by contract or 
ownership interest, to direct or cause the direc-
tion of the management or policies of the insti-
tution, has filed for bankruptcy; or 
‘‘(B) the institution, the institution’s 
owner, or the institution’s chief executive officer 
has been convicted of, or has pled nolo 
contendere or guilty to, a crime involving the 
acquisition, use, or expenditure of Federal 
funds, or has been judicially determined to have 
committed a crime involving the acquisition, 
use, or expenditure involving Federal funds. 
‘‘(4) LIMITATION ON COURSE OF STUDY OR EN-
ROLLMENT.—An institution shall not be considered 
an institution of higher education if such institu-
tion— 
‘‘(A) offers more than 50 percent of such 
institution’s courses by correspondence edu-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
cation, unless the institution is an institution 
that meets the definition in section 3(3)(C) of 
the Carl D. Perkins Career and Technical Edu-
cation Act of 2006; 
‘‘(B) enrolls 50 percent or more of the in-
stitution’s students in correspondence education 
courses, unless the institution is an institution 
that meets the definition in section 3(3)(C) of 
such Act, except that the Secretary, at the re-
quest of the institution, may waive the applica-
bility of this subparagraph to the institution for 
good cause, as determined by the Secretary in 
the case of an institution of higher education 
that provides a 2- or 4-year program of instruc-
tion (or both) for which the institution awards 
an associate or baccalaureate degree, respec-
tively; 
‘‘(C) has a student enrollment in which 
more than 25 percent of the students are incar-
cerated, except that the Secretary may waive 
the limitation contained in this subparagraph 
for an institution that provides a 2- or 4-year 
program of instruction (or both) for which the 
institution awards an associate’s degree or a 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
postsecondary certificate, or a bachelor’s de-
gree, respectively; or 
‘‘(D) has a student enrollment in which 
more than 50 percent of the students either do 
not have a secondary school diploma or its rec-
ognized equivalent, or do not meet the require-
ments of section 484(d), and does not provide 
a 2- or 4-year program of instruction (or both) 
for which the institution awards an associate’s 
degree or a bachelor’s degree, respectively, ex-
cept that the Secretary may waive the limita-
tion contained in this subparagraph if an insti-
tution demonstrates to the satisfaction of the 
Secretary that the institution exceeds such limi-
tation because the institution serves, through 
contracts with Federal, State, or local govern-
ment agencies, significant numbers of students 
who do not have a secondary school diploma or 
its recognized equivalent or do not meet the re-
quirements of section 484(d). 
‘‘(c) LIST OF ACCREDITING AGENCIES.—For pur-
poses of this section, the Secretary shall publish a list of 
nationally recognized accrediting agencies or associations 
that the Secretary determines, pursuant to subpart 2 of 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
part H of title IV, to be reliable authority as to the quality 
of the education offered. 
‘‘(d) CERTIFICATION.—The Secretary shall certify, 
for the purposes of participation in title IV, an institu-
tion’s qualification as an institution of higher education 
in accordance with the requirements of subpart 3 of part 
H of title IV. 
‘‘(e) LOSS OF ELIGIBILITY.—An institution of higher 
education shall not be considered to meet the definition 
of an institution of higher education for the purposes of 
participation in title IV if such institution is removed from 
eligibility for funds under title IV as a result of an action 
pursuant to part H of title IV. 
‘‘(f) RULE
OF CONSTRUCTION.—Nothing in sub-
section (a)(2) relating to State authorization shall be con-
strued to— 
‘‘(1) impede or preempt State laws, regulations, 
or requirements on how States authorize out-of- 
State institutions of higher education; or 
‘‘(2) limit, impede, or preclude a State’s ability 
to collaborate or participate in a reciprocity agree-
ment to permit an institution within such State to 
meet any other State’s authorization requirements 
for out-of-State institutions.’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 
Part A of title I (20 U.S.C. 1001 et seq.) is further 
amended by striking section 102 (20 U.S.C. 1002) and 
inserting the following: 
‘‘SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 
‘‘(a) 
INSTITUTIONS
OUTSIDE
THE
UNITED 
STATES.— 
‘‘(1) IN GENERAL.—Only for purposes of part 
D or E of title IV, the term ‘institution of higher 
education’ includes an institution outside the United 
States (referred to in this part as a ‘foreign institu-
tion’) that is comparable to an institution of higher 
education as defined in section 101 and has been ap-
proved by the Secretary for purposes of part D or 
E of title IV, consistent with the requirements of 
section 452(d). 
‘‘(2) QUALIFICATIONS.—Only for the purposes 
of students receiving aid under title IV, an institu-
tion of higher education may not qualify as a foreign 
institution under paragraph (1), unless such institu-
tion— 
‘‘(A) is legally authorized to provide an 
educational program beyond secondary edu-
cation by the education ministry (or comparable 
agency) of the country in which the institution 
is located; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
‘‘(B) is not located in a State; 
‘‘(C) except as provided with respect to 
clinical training offered by the institution under 
600.55(h)(1), section 600.56(b), or section 
600.57(a)(2) of title 34, Code of Federal Regu-
lations (as in effect pursuant to subsection 
(b))— 
‘‘(i) does not offer any portion of an 
educational program in the United States 
to students who are citizens of the United 
States; 
‘‘(ii) has no written arrangements 
with an institution or organization located 
in the United States under which students 
enrolling at the foreign institution would 
take courses from an institution located in 
the United States; and 
‘‘(iii) does not allow students to enroll 
in any course offered by the foreign insti-
tution in the United States, including re-
search, work, internship, externship, or 
special studies within the United States, 
except that independent research done by 
an individual student in the United States 
for not more than one academic year is 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
permitted, if the research is conducted dur-
ing the dissertation phase of a doctoral 
program under the guidance of faculty and 
the research is performed at a facility in 
the United States; 
‘‘(D) awards degrees, certificates, or other 
recognized educational credentials in accordance 
with section 600.54(e) of title 34, Code of Fed-
eral Regulations (as in effect pursuant to sub-
section (b)) that are officially recognized by the 
country in which the institution is located; and 
‘‘(E) meets the applicable requirements of 
subsection (b). 
‘‘(3) INSTITUTIONS WITH LOCATIONS IN AND OUT-
SIDE THE UNITED STATES.—In a case of an institution 
of higher education consisting of two or more locations 
offering all or part of an educational program that are 
directly or indirectly under common ownership and that 
enrolls students both within a State and outside the 
United States, and the number of students who would be 
eligible to receive funds under title IV attending locations 
of such institution outside the United States, is at least 
twice the number of students enrolled within a State— 
‘‘(A) the locations outside the United States shall 
apply to participate as one or more foreign institutions 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
and shall meet the requirements of paragraph (1) of this 
definition, and the other requirements of this part; and 
‘‘(B) the locations within a State shall be treated as 
an institution of higher education under section 101. 
‘‘(b) TREATMENT OF CERTAIN REGULATIONS.— 
‘‘(1) FORCE AND EFFECT.— 
‘‘(A) IN GENERAL.—The provisions of title 
34, Code of Federal Regulations, referred to in 
subparagraph (B), as such provisions were in 
effect on the day before the date of the enact-
ment of the PROSPER Act, shall have the 
force and effect of enacted law until changed by 
such law and are deemed to be incorporated in 
this subsection as though set forth fully in this 
subsection. 
‘‘(B) APPLICABLE PROVISIONS.—The pro-
visions of title 34, Code of Federal Regulations, 
referred to in this subparagraph are the fol-
lowing: 
‘‘(i) Subject to paragraph (2)(A), sec-
tion 600.41(e)(3). 
‘‘(ii) Subject to paragraph (2)(B), sec-
tion 600.52. 
‘‘(iii) Subject to paragraph (2)(C), 
section 600.54, except that paragraph (1) 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
of subsection (a) of such section shall have 
no force or effect. 
‘‘(iv) Subject to subparagraphs (D) 
and (E) of paragraph (2), section 600.55, 
except that paragraph (4) of subsection (f) 
of such section shall have no force or ef-
fect. 
‘‘(v) Section 600.56. 
‘‘(vi) Subject to paragraph (2)(F), 
section 600.57. 
‘‘(vii) Subject to subparagraphs (G) 
and 
(H) 
of 
paragraph 
(2), 
section 
668.23(h), except that clause (iii) of para-
graph (1) of such section shall have no 
force or effect. 
‘‘(viii) Section 668.5. 
‘‘(C) APPLICATION
TO
FEDERAL
ONE 
LOANS.—With respect to the provisions of title 
34, Code of Federal Regulations, referred to 
subparagraph (B), as modified by paragraph 
(2) any reference to a loan made under part D 
of title IV shall also be treated as a reference 
to a loan made under part E of title IV. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
‘‘(2) 
MODIFICATIONS.—The 
following 
shall 
apply to the provisions of title 34, Code of Federal 
Regulations, referred to in paragraph (1)(B): 
‘‘(A) Notwithstanding section 600.41(e)(3) 
of title 34, Code of Federal Regulations (as in 
effect pursuant to paragraph (1)), if the basis 
for the loss of eligibility of a foreign graduate 
medical school to participate in programs under 
title IV is one or more annual pass rates on the 
United States Medical Licensing Examination 
below the threshold required in subparagraph 
(D) the sole issue is whether the aggregate pass 
rate for the preceding calendar year fell below 
that threshold. For purposes of the preceding 
sentence, in the case of a foreign graduate med-
ical school that opted to have the Educational 
Commission for Foreign Medical Graduates cal-
culate and provide the pass rates directly to the 
Secretary for the preceding calendar year as 
permitted under section 600.55(d)(2) of title 
34, Code of Federal Regulations (as in effect 
pursuant to paragraph (1)), in lieu of the for-
eign graduate medical school providing pass 
rate data to the Secretary under section 
600.55(d)(1)(iii) of title 34, Code of Federal 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
Regulations (as in effect pursuant to paragraph 
(1)), the Educational Commission for Foreign 
Medical Graduates’ calculations of the school’s 
rates are conclusive; and the presiding official 
has no authority to consider challenges to the 
computation of the rate or rates by the Edu-
cational Commission for Foreign Medical Grad-
uates. 
‘‘(B) Notwithstanding section 600.52 of 
title 34, Code of Federal Regulations (as in ef-
fect pursuant to paragraph (1)), in this Act, the 
term ‘foreign institution’ means an institution 
described in subsection (a). 
‘‘(C) Notwithstanding section 600.54(c) of 
title 34, Code of Federal Regulations (as in ef-
fect pursuant to paragraph (1)), to be eligible 
to participate in programs under title IV, for-
eign institution may not enter into a written ar-
rangement under which an institution or orga-
nizations that is not eligible to participate in 
programs under title IV provides more than 25 
percent of the program of study for one or more 
of the eligible foreign institution’s programs. 
‘‘(D) 
Notwithstanding 
section 
600.55(f)(1)(ii) of title 34, Code of Federal 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
Regulations (as in effect pursuant to paragraph 
(1)), for a foreign graduate medical school out-
side of Canada, for Step 1, Step 2–CS, and 
Step 2–CK, or the successor examinations, of 
the United States Medical Licensing Examina-
tion administered by the Educational Commis-
sion for Foreign Medical Graduate, at least 75 
percent of the school’s students and graduates 
who receive or have received title IV funds in 
order to attend that school, and who completed 
the final of these three steps of the examination 
in the year preceding the year for which any of 
the school’s students seeks a loan under title IV 
shall have received an aggregate passing score 
on the exam as a whole; or except as provided 
in section 600.55(f)(2) of title 34, Code of Fed-
eral Regulations (as in effect pursuant to para-
graph (1)), for no more than two consecutive 
years, at least 70 percent of the individuals who 
were students or graduates of the graduate 
medical school outside the United States or 
Canada (who receive or have received title IV 
funds in order to attend that school) taking the 
United States Medical Licensing Examination 
exams in the year preceding the year for which 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
any of the school’s students seeks a loan under 
title IV shall have received an aggregate pass-
ing score on the exam as a whole. 
‘‘(E) Notwithstanding 600.55(h)(2) of title 
34, Code of Federal Regulations (as in effect 
pursuant to paragraph (1)), not more than 25 
percent of the graduate medical educational 
program offered to United States students, 
other than the clinical training portion of the 
program, may be located outside of the country 
in which the main campus of the foreign grad-
uate medical school is located. 
‘‘(F) Notwithstanding section 600.57(a)(5) 
of title 34, Code of Federal Regulations (as in 
effect pursuant to paragraph (1)), a nursing 
school shall reimburse the Secretary for the 
cost of any loan defaults for current and former 
students during the previous fiscal year. 
‘‘(G) 
Notwithstanding 
section 
668.23(h)(1)(ii), of title 34, Code of Federal 
Regulations (as in effect pursuant to paragraph 
(1)), 
a 
foreign 
institution 
that 
received 
$500,000 or more in funds under title IV dur-
ing its most recently completed fiscal year shall 
submit, in English, for each most recently com-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
pleted fiscal year in which it received such 
funds, audited financial statements prepared in 
accordance with generally accepted accounting 
principles of the institution’s home country pro-
vided that such accounting principles are com-
parable to the International Financial Report-
ing Standards. 
‘‘(H) 
Notwithstanding 
section 
668.23(h)(1)(ii), of title 34, Code of Federal 
Regulations (as in effect pursuant to paragraph 
(1)), only in a case in which the accounting 
principles of an institution’s home country are 
not comparable to International Financial Re-
porting Standards shall the institution be re-
quired to submit corresponding audited finan-
cial statements that meet the requirements of 
section 668.23(d) of title 34, Code of Federal 
Regulations (as in effect pursuant to paragraph 
(1)). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) IN GENERAL.—A foreign graduate medical 
school at which student test passage rates are below 
the minimum requirements set forth in subsection 
(b)(2)(D) for each of the two most recent calendar 
years for which data are available shall not be eligi-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
ble to participate in programs under part D or E of 
title IV in the fiscal year subsequent to that con-
secutive two year period and such institution shall 
regain eligibility to participate in programs under 
such part only after demonstrating compliance with 
requirements under section 600.55 of title 34, Code 
of Federal Regulations (as in effect pursuant to sub-
section (b)) for one full calendar year subsequent to 
the fiscal year the institution became ineligible un-
less, within 30 days of receiving notification from 
the Secretary of the loss of eligibility under this 
paragraph, the institution appeals the loss of its eli-
gibility to the Secretary. The Secretary shall issue a 
decision on any such appeal within 45 days after its 
submission. Such decision may permit the institution 
to continue to participate in programs under part D 
or E of title IV, if— 
‘‘(A) the institution demonstrates to the 
satisfaction of the Secretary that the test pas-
sage rates on which the Secretary has relied are 
not accurate, and that the recalculation of such 
rates would result in rates that exceed the re-
quired minimum for any of these two calendar 
years; or 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
‘‘(B) there are, in the judgement of the 
Secretary, mitigating circumstances that would 
make the application of this paragraph inequi-
table. 
‘‘(2) STUDENT
ELIGIBILITY.—If, pursuant to 
this subsection, a foreign graduate medical school 
loses eligibility to participate in the programs under 
part D or E of title IV, then a student at such insti-
tution may, notwithstanding such loss of eligibility, 
continue to be eligible to receive a loan under such 
part while attending such institution for the aca-
demic year succeeding the academic year in which 
such loss of eligibility occurred. 
‘‘(3) TREATMENT OF CLINICAL TRAINING PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—Clinical training pro-
grams operated by a foreign graduate medical 
school with an accredited hospital or clinic in 
the United States or at an institution in Can-
ada accredited by the Liaison Committee on 
Medical Education shall be deemed to be ap-
proved and shall not require the prior approval 
of the Secretary. 
‘‘(B) ON-SITE EVALUATIONS.—Any part of 
a clinical training program operated by a for-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
eign graduate medical school located in a for-
eign country other than the country in which 
the main campus is located, in the United 
States, or at an institution in Canada accred-
ited by the Liaison Committee on Medical Edu-
cation, shall not require an on-site evaluation or 
specific approval by the institution’s medical ac-
crediting agency if the location is a teaching 
hospital accredited by and located within a for-
eign country approved by the National Com-
mittee on Foreign Medical Education and Ac-
creditation. 
‘‘(d) FAILURE TO RELEASE INFORMATION.—An in-
stitution outside the United States that does not provide 
to the Secretary such information as may be required by 
this section shall be ineligible to participate in the loan 
program under part D or E of title IV. 
‘‘(e) ONLINE EDUCATION.—Notwithstanding section 
481(b)(2), an eligible program described in section 600.54 
of title 34, Code of Federal Regulations (as in effect pur-
suant to subsection (b)) may not offer more than 50 per-
cent of courses through telecommunications.’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS