297 
‘‘(2) 
CONSULTATION.—In 
awarding 
grants 
under this section for a fiscal year, the Secretary 
shall consult with the independent evaluator before 
finalizing which eligible institutions will receive such 
a grant for such fiscal year. 
‘‘(b) REQUIREMENTS FOR SELECTION.—To be eligi-
ble to receive a grant under this section, an eligible institu-
tion shall meet the following requirements: 
‘‘(1) The eligible institution was awarded a 
grant under section 420U at least 1 year before 
such eligible institution submits an application under 
subsection (e). 
‘‘(2) The eligible institution submits an applica-
tion under subsection (e). 
‘‘(3) The eligible institution demonstrates, on 
the date of the application described in subsection 
(e), the availability of non-Federal funding for the 
matching funds required under subparagraphs (A), 
(B), and (C) of subsection (d)(1). 
‘‘(c) DURATION.—A grant awarded under this section 
shall be for a 5-year period. 
‘‘(d) NON-FEDERAL CONTRIBUTION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an eligible institution awarded a grant 
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under this section shall contribute in cash from non- 
Federal sources, the following: 
‘‘(A) For the second year of the grant pe-
riod, an amount equal to 20 percent of the cost 
of carrying out the community college student 
success program at the institution for such 
year. 
‘‘(B) For the third year of the grant pe-
riod, an amount equal to 40 percent of the cost 
of carrying out such program for such year. 
‘‘(C) For the fourth year of the grant pe-
riod, an amount equal to 60 percent of the cost 
of carrying out such program for such year. 
‘‘(D) For the fifth year of the grant pe-
riod, an amount equal to 80 percent of the cost 
of carrying out such program for such year. 
‘‘(2) EXCEPTION.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), with respect to an exempt institution 
awarded a grant under this section, for each 
year of the grant period beginning with the sec-
ond year through the fifth year, the Secretary 
shall not require the institution to make a cash 
contribution from non-Federal sources in an 
amount that is greater than the amount equal 
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to 5 percent of the cost of carrying out the 
community college student success program at 
the institution for such year. 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) 
EXEMPT
INSTITUTION.—The 
term ‘exempt institution’ means an eligible 
institution that is a— 
‘‘(I) Tribal college or university; 
or 
‘‘(II) an institution located in the 
Commonwealth of Puerto Rico, Guam, 
American Samoa, the United States 
Virgin Islands, the Commonwealth of 
the Northern Mariana Islands, the 
Republic of the Marshall Islands, the 
Federated States of Micronesia, or the 
Republic of Palau. 
‘‘(ii) TRIBAL
COLLEGE
OR
UNIVER-
SITY.—The term ‘Tribal college or univer-
sity’ has the meaning given the term in 
section 316 of the Higher Education Act 
of 1965 (20 U.S.C. 1059c). 
‘‘(e) APPLICATION.— 
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‘‘(1) IN GENERAL.—An eligible institution de-
siring a grant under this section shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and containing such information as the Sec-
retary may require, which shall include a copy of the 
report described in 420U(e). 
‘‘(2) REQUIREMENTS FOR ELIGIBLE INSTITU-
TIONS THAT REAPPLY.—An institution that submits 
an application under paragraph (1) that is not the 
first application submitted by such institution under 
such paragraph shall include the following in such 
application: 
‘‘(A) The number of applications such eli-
gible institution has submitted under paragraph 
(1) and the dates on which such applications 
were submitted. 
‘‘(B) A description of the changes the eligi-
ble institution has made since the most recent 
application submitted under paragraph (1) to 
improve the plan to implement a community 
college student success program at such eligible 
institution. 
‘‘(3) REVIEW.—Not later than 60 days after re-
ceiving an application under this subsection, the Sec-
retary shall approve or deny such application. 
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‘‘(f) REQUIRED USE OF FUNDS.—An eligible institu-
tion that receives a grant under this section shall use the 
grant funds to— 
‘‘(1) implement a community college student 
success program; 
‘‘(2) regularly review— 
‘‘(A) data to monitor the academic 
progress of eligible students participating in 
such program; and 
‘‘(B) the meeting and program participa-
tion 
requirements 
described 
in 
section 
420AA(1); and 
‘‘(3) cover the employment of administrators 
for the program whose sole job shall be to admin-
ister the program, without regard to whether the 
employment is full-time or less than full-time. 
‘‘(g) PERMISSIBLE USE OF FUNDS.—An eligible in-
stitution that receives a grant under this section may use 
the grant to— 
‘‘(1) establish or expand a data tracking system 
that includes early alerts to complete the regular re-
views required under subsection (f)(2); 
‘‘(2) provide eligible students participating in 
the community college student success program for 
which the grant is awarded with financial assistance 
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to cover the costs described in paragraph (2), (3), or 
(8) of section 472; 
‘‘(3) establish or expand career development 
services for such students, such as career workshops 
or career counseling; 
‘‘(4) establish or expand tutoring services for 
such students; and 
‘‘(5) provide financial support for eligible stu-
dents participating in such program to enroll in 
courses offered during enrollment periods that are 
outside the fall and spring semesters (or equivalent 
terms). 
‘‘(h) REPORTS.—An eligible institution that receives 
a grant under this section shall— 
‘‘(1) not less than once for each year of the 
grant period, submit to the Secretary an annual per-
formance report for such year of the grant period, 
and when data is available, compares such year with 
each of the 2 years preceding the date on which the 
grant was awarded— 
‘‘(A) the demographic characteristics of 
the eligible students participating in the com-
munity college student success program; 
‘‘(B) the average number of credits at-
tempted and average number of credits earned, 
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rate of retention, rate of degree completion, and 
rates of transfer of such eligible students; 
‘‘(C) the graduation rate of such eligible 
students within— 
‘‘(i) 100 percent of the normal time 
for graduation; 
‘‘(ii) 150 percent of the normal time 
for graduation; and 
‘‘(iii) 200 percent of the normal time 
for graduation; 
‘‘(D) an analysis of the implementation 
and progress of such program based on the am-
bitious outcome goals described in the report 
submitted by the institution under section 
420U(e)(1)(A), including challenges to and 
changes made to such program; and 
‘‘(E) if according to the analysis under 
subparagraph (D), the program is not on track 
to meet such ambitious outcome goals, a de-
scription of the plans to adjust the program to 
improve the performance of the program; and 
‘‘(F) the participation of such eligible stu-
dents in tutoring, career services, and meetings 
with program advisors; 
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‘‘(G) for the report for year 3 of the grant 
period, the plan to meet the non-Federal con-
tribution 
requirement 
under 
subsection 
(d)(1)(D); and 
‘‘(H) for the report for year 4 of the grant 
period, a description of— 
‘‘(i) the source of the funds to meet 
the non-Federal contribution requirement 
under subsection (d)(1)(D); 
‘‘(ii) the plans to continue to fund 
such program after the grant period ends; 
and 
‘‘(iii) the plans to use this program as 
a catalyst for institution-wide reform with 
respect to graduation rates and transfer 
rates for all students; and 
‘‘(2) not later than 6 years after the date on 
which the eligible institution received such grant, 
submit a final report to the Secretary that includes 
an analysis of— 
‘‘(A) the factors that contributed to the 
success or failure of the community college stu-
dent success program in meeting the ambitious 
outcome goals described in the report submitted 
by the institution under section 3(e)(1)(A); 
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‘‘(B) the challenges faced in attempting to 
implement such program; 
‘‘(C) information on how to improve such 
program; 
‘‘(D) whether the program has created an 
institution-wide reform with respect to gradua-
tion rates and transfer rates for all students, 
and if so, how such reform was created; and 
‘‘(E) how the eligible institution will con-
tinue to fund such program after the end of the 
grant period. 
‘‘SEC. 420W. EVALUATIONS. 
‘‘(a) INDEPENDENT EVALUATIONS.—Before final-
izing which eligible institutions will receive grants under 
section 420V for a fiscal year, the Secretary, acting 
through the Director of the Institute of Education 
Sciences, shall enter into a contract with an independent 
evaluator— 
‘‘(1) to consult with the Secretary on which eli-
gible institutions should receive the grants; and 
‘‘(2) to use the What Works Clearinghouse 
Standards 
(without 
reservations) 
to 
evaluate, 
throughout the duration of the grant period of such 
grants— 
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‘‘(A) each community college student suc-
cess program for which such grant is awarded, 
including whether the program met its ambi-
tious outcome goals described in the report sub-
mitted 
by 
the 
institution 
under 
section 
420U(e)(1)(A); 
‘‘(B) the average impact of community col-
lege student success programs on graduation 
rates and transfer rates for eligible students; 
‘‘(C) the variation in program impact 
across eligible institutions with respect to such 
rates; and 
‘‘(D) whether such programs lead to higher 
graduation rates and transfer rates of eligible 
students per dollar spent for such students by 
such institutions compared with such rates at 
eligible institutions without such programs. 
‘‘(b) RESULTS OF EVALUATIONS.—The results of the 
evaluations under subsection (a) shall be made publicly 
available on the website of the Department of Education. 
‘‘(c) FUNDING FOR EVALUATIONS.—The Secretary 
may reserve not more than 15 percent of the funds appro-
priated under section 420BB for a fiscal year to carry out 
this section for such fiscal year. 
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‘‘SEC. 420X. OUTREACH AND TECHNICAL ASSISTANCE. 
‘‘(a) OUTREACH.—The Secretary shall conduct out-
reach activities to notify eligible institutions of the avail-
ability of grants under this subpart. 
‘‘(b) TECHNICAL ASSISTANCE.—The Secretary shall 
provide technical assistance— 
‘‘(1) to eligible institutions that may be inter-
ested in applying for grants under this subpart, in-
cluding assistance with applications for such grants; 
and 
‘‘(2) to eligible institutions awarded grants 
under this subpart, including assistance with— 
‘‘(A) establishing ambitious outcome goals 
described in section 420U(e)(1)(A); and 
‘‘(B) the implementation of a community 
college student success program. 
‘‘(c) FUNDING
FOR TECHNICAL ASSISTANCE
FOR 
EVALUATIONS.—The Secretary may reserve not more 
than 7 percent of the funds appropriated under section 
420BB for a fiscal year for technical assistance under this 
section for such fiscal year. 
‘‘SEC. 420Y. REPORT TO CONGRESS. 
‘‘Not later than 1 year after the date on which the 
Secretary receives the final evaluation results under sec-
tion 420W for eligible institutions that were awarded 
grants under section 420V for the same fiscal year, the 
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Secretary shall submit to Congress a report that in-
cludes— 
‘‘(1) the number of grants awarded under sec-
tion 420V for such fiscal year, and the amount of 
such grants; 
‘‘(2) the number of grants awarded under sec-
tion 420U to eligible institutions that received the 
grants described in paragraph (1), and the amount 
of such grants; 
‘‘(3) the number of grants awarded under sec-
tion 420U to eligible institutions that would have 
been eligible but did not receive the grants in para-
graph (1); 
‘‘(4) such final evaluation results; and 
‘‘(5) any other information the Secretary may 
deem relevant. 
‘‘SEC. 420Z. SUPPLEMENT, NOT SUPPLANT. 
‘‘Funds awarded to an eligible institution under this 
subpart shall be used only to supplement the amount of 
funds that would, in the absence of the Federal funds pro-
vided under this subpart, be made available from non-Fed-
eral sources or other Federal sources to carry out the ac-
tivities under this subpart, and not to supplant such 
funds. 
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‘‘SEC. 420AA. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) COMMUNITY COLLEGE STUDENT SUCCESS 
PROGRAM.—The term ‘community college student 
success program’ means a program carried out by 
an eligible institution under which the institution 
carries out the following: 
‘‘(A) Provides eligible students partici-
pating in such program with an amount that 
covers the cost of tuition and fees that are not 
covered by any Federal, State, or institutional 
financial assistance received by the student. 
‘‘(B) Requires eligible students partici-
pating in such program to— 
‘‘(i) be enrolled in the eligible institu-
tion and carry a full-time academic work-
load during each fall and spring semester 
(or equivalent terms) during which the stu-
dent participates in such program; 
‘‘(ii) if the eligible student is referred 
to remedial courses or is on academic pro-
bation, meet, on at least a weekly basis, 
with a tutor, except that in the case of an 
eligible student who is academically strug-
gling, but who is not referred to remedial 
courses or on academic probation, the stu-
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dent may meet with a tutor as often as the 
program advisor for such student requires; 
‘‘(iii) meet with a program advisor— 
‘‘(I) twice each month during the 
first semester (or equivalent term) of 
participation in such program; and 
‘‘(II) as directed by the program 
advisor in subsequent semesters (or 
equivalent terms) under subparagraph 
(C)(ii); and 
‘‘(iv) meet with an on-campus career 
advisor or participate in a career services 
event once each semester (or equivalent 
term). 
‘‘(C) Provides a program advisor to each 
eligible student participating in such program 
who— 
‘‘(i) provides comprehensive academic 
and personal advising to the eligible stu-
dent, including— 
‘‘(I) the creation and implemen-
tation of an academic plan for the 
student to graduate from a program 
of study at the eligible institution 
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within 150 percent of the normal time 
for graduation from such program; 
‘‘(II) if an eligible student is re-
ferred to remedial courses, encour-
aging such student to complete such 
courses as quickly as possible; and 
‘‘(III) assisting the eligible stu-
dent with developing and achieving 
academic goals, including creating 
strong transfer pathways that dem-
onstrate programmatic transfer for 
students interested in transferring to 
a 4-year institution of higher edu-
cation; 
‘‘(ii) after the eligible student partici-
pating in such program completes a semes-
ter (or equivalent term), creates for the eli-
gible student a needs-based advising sched-
ule that indicates, based on the eligible 
student’s academic performance, the fre-
quency with which such eligible student 
shall be required to meet with a program 
advisor for each subsequent semester (or 
equivalent term) of program participation; 
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‘‘(iii) has a caseload of not more than 
150 eligible students; 
‘‘(iv) tracks the attendance of the eli-
gible student at the meetings described in 
clauses (ii), (iii), and (iv) of subparagraph 
(B); 
‘‘(v) monitors the academic progress 
of the eligible student; and 
‘‘(vi) provides each eligible student 
who meets the requirements of subpara-
graph (B), on at least a monthly basis, 
with financial incentives, such as a trans-
portation pass or a gas card. 
‘‘(D) Provides free tutoring and career 
services to eligible students participating in 
such program, and may reserve places in select 
courses for such eligible students in order to 
create a community within cohorts of eligible 
students. 
‘‘(2) ELIGIBLE INSTITUTION.—The term ‘eligi-
ble institution’ means a public 2-year institution of 
higher education. 
‘‘(3) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means a student enrolled at an eligible in-
stitution who— 
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‘‘(A) on the date such eligible student 
would begin participation in a community col-
lege student success program at such eligible 
institution— 
‘‘(i) is enrolled in a program of study 
leading to an associate degree; 
‘‘(ii) is enrolled at such institution 
and carrying a full-time academic workload 
during each fall and spring semester (or 
equivalent terms) during which the student 
participates in such program; 
‘‘(iii) is— 
‘‘(I) a first-time undergraduate 
student; or 
‘‘(II) a continuing or transfer 
student with not more than 15 credits 
and a minimum grade point average 
of 2.0 (or its equivalent); and 
‘‘(iv) is considered by the eligible in-
stitution to need no more than two reme-
dial courses; and 
‘‘(B) if the student is eligible for financial 
aid under title IV, has completed the Free Ap-
plication for Federal Student Aid or other com-
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mon financial reporting form under section 
483(a); and 
‘‘(C) meets any other requirements estab-
lished by the institution. 
‘‘(4) FULL-TIME
ACADEMIC
WORKLOAD.—The 
term ‘full-time academic workload’, when used with 
respect to a semester or equivalent term, means at 
least 12 credits (or the equivalent). 
‘‘(5) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term under section 101. 
‘‘(6) TRANSFER
RATE.—The term ‘transfer 
rate’, when used with respect to students enrolled in 
a program of study at an eligible institution, means 
the rate at which such students transfer to a 4-year 
institution of higher education. 
‘‘SEC. 420BB. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this subpart $1,000,000,000, to be available until ex-
pended for fiscal year 2019 and each of the 5 succeeding 
fiscal years.’’. 
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315 
PART B 
SEC. 4041. TERMINATION OF CERTAIN REPAYMENT PLAN 
OPTIONS AND OPPORTUNITY TO CHANGE RE-
PAYMENT PLANS. 
Section 428(b) of the Higher Education Act of 1965 
(20 U.S.C. 1078(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (D)— 
(i) in clause (ii), by striking ‘‘may an-
nually change the selection of a repayment 
plan under this part,’’ and inserting ‘‘may 
at any time after July 1, 2019, change the 
selection of a repayment plan under this 
part to one of the 2 repayment plans de-
scribed in paragraph (9)(C),’’; and 
(ii) in clause (iii), by striking ‘‘be sub-
ject to income contingent repayment in ac-
cordance with subsection (m);’’ and insert-
ing ‘‘be subject to income-based repayment 
in accordance with section 493C(f);’’; and 
(B) in subparagraph (E)(i), by striking 
‘‘the option of repaying the loan in accordance 
with a standard, graduated, income-sensitive, or 
extended repayment schedule (as described in 
paragraph (9)) established by the lender in ac-
cordance with regulations of the Secretary; 
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and’’ and inserting ‘‘the option of repaying the 
loan in accordance with a repayment plan de-
scribed in paragraph (9)(C) established by the 
lender in accordance with regulations of the 
Secretary; and’’; and 
(2) in paragraph (9), by adding at the end the 
following: 
‘‘(C) SELECTION
OF
REPAYMENT
PLANS 
ON AND AFTER JULY 1, 2019.— 
‘‘(i) OPPORTUNITY
TO
CHANGE
RE-
PAYMENT
PLANS.—Notwithstanding any 
other provision of this paragraph, or any 
other provision of law, and in accordance 
with regulations, beginning on July 1, 
2019, the lender shall offer a borrower of 
a loan made, insured, or guaranteed under 
this part the opportunity to change repay-
ment plans, and to enroll in one of the fol-
lowing repayment plans: 
‘‘(I) A fixed repayment plan de-
scribed in section 493E. 
‘‘(II) The income-based repay-
ment plan under section 493C(f).’’. 
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SEC. 4042. CONFORMING AMENDMENT TO SEPARATE JOINT 
CONSOLIDATION LOANS. 
Section 428C(a)(3)(B)(i)(V) of the Higher Education 
Act of 1965 (20 U.S.C. 1078–3(3)(B)(i)(V)) is amend-
ed— 
(1) by striking ‘‘or’’ at the end of item (bb); 
(2) by striking the period at the end of item 
(cc) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(dd) for the purpose of sep-
arating a joint consolidation loan 
into 2 separate Federal Direct 
Consolidation Loans under sec-
tion 455(g)(2).’’. 
SEC. 4043. DISBURSEMENT OF STUDENT LOANS. 
Section 428G of the Higher Education Act of 1965 
(20 U.S.C. 1078–7(a)) is amended— 
(1) in subsection (a) by adding at the end the 
following: 
‘‘(5) ADJUSTED COHORT DEFAULT RATE.—Be-
ginning on the date on which the final adjusted co-
hort default rates are published by the Secretary for 
not less than 3 fiscal years under section 435(m), an 
institution whose adjusted cohort default rate (as de-
termined under section 435(m)) for each of the 3 
most recent fiscal years for which data are available 
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is less than 5 percent may disburse any loan made, 
insured, or guaranteed under this part in a single in-
stallment for any period of enrollment that is not 
more than 1 semester, 1 trimester, 1 quarter, or 4 
months.’’; and 
(2) in subsection (e), by inserting before the pe-
riod the following: ‘‘, or beginning on the date on 
which the final adjusted cohort default rates are 
published by the Secretary for fiscal year 2016 
under section 435(m), an adjusted cohort default 
rate (as determined under section 435(m)) of less 
than 2 percent’’. 
SEC. 4044. STUDENT LOAN CONTRACT AND LOAN DISCLO-
SURES. 
(a) 
STUDENT
LOAN
CONTRACT.—Section 
432(m)(1)(D) of the Higher Education Act of 1965 (20 
U.S.C. 1082(m)(1)(D)) is amended by adding at the end 
the following: 
‘‘(iv) STUDENT LOAN CONTRACT.— 
‘‘(I) IN GENERAL.—Any master 
promissory note form described in this 
subparagraph that is developed or 
used for loans made under part D for 
periods of enrollment beginning on or 
after the date of enactment of the 
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Aim Higher Act shall be referred to 
as a ‘student loan contract’. 
‘‘(II) CLARIFICATION ON USE.— 
Notwithstanding clause (i), each stu-
dent loan contract for a part D loan 
made for periods of enrollment begin-
ning on or after the date of enactment 
of the Aim Higher Act shall— 
‘‘(aa) not be entered into by 
a student unless the student has 
completed all required counseling 
related to such loan, including 
counseling required under section 
485(l); 
‘‘(bb) be signed by the stu-
dent entering such student loan 
contract after completion of such 
counseling; and 
‘‘(cc) be used only for the 
award year for which the initial 
loans are made under the con-
tract, and shall not be valid for 
additional loans for the same or 
subsequent periods of enroll-
ment.’’. 
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(b) LOAN DISCLOSURES.—Section 432(m)(1)(D) of 
the Higher Education Act of 1965 (20 U.S.C. 
1082(m)(1)(D)) is further amended by adding after clause 
(iv) (as amended) the following: 
‘‘(v) LOAN DISCLOSURES.—For loans 
made for periods of enrollment beginning 
on or after the date of enactment of the 
Aim Higher Act, the Secretary shall take 
such steps as are necessary to streamline 
the student loan disclosure requirements 
under this Act. The Secretary shall ensure 
that information required to be disclosed to 
a student who is applying for, receiving, or 
preparing to repay a loan under part D of 
this Act shall be streamlined in a manner 
that— 
‘‘(I) reduces and simplifies the 
paperwork students are required to 
complete; and 
‘‘(II) limits the number of times 
students are presented with disclo-
sures by incorporating the streamlined 
disclosures into required student loan 
counseling under section 485(l), the 
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student loan contract under this sub-
paragraph, or both.’’. 
SEC. 4045. COHORT DEFAULT RATES. 
(a) INELIGIBILITY
BASED
ON
HIGH
DEFAULT 
RATES.— 
(1) IN GENERAL.—Section 435(a) of the High-
er Education Act of 1965 (20 U.S.C. 1085(a)) is 
amended— 
(A) in paragraph (7)(A), by adding at the 
end the following: 
‘‘(iii) 
DEFAULT
MANAGEMENT 
PLAN.—The default management plan re-
quired under clause (II) may not include 
placing students in forbearance as a means 
of reducing the cohort default rate of the 
institution.’’; and 
(B) by adding at the end the following: 
‘‘(9) INELIGIBILITY BASED ON HIGH DEFAULT 
RATES ON OR AFTER FISCAL YEAR 2016.—Beginning 
on the date that is one year after the date on which 
the final adjusted cohort default rates are published 
by the Secretary for not less than 3 fiscal years— 
‘‘(A) an institution shall be ineligible to 
participate in a program under this title— 
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‘‘(i) in a case in which the institu-
tion’s adjusted cohort default rate is great-
er than 20 percent for each of the three 
most recent fiscal years for which the ad-
justed cohort default rate is published; or 
‘‘(ii)(I) in a case in which the institu-
tion’s adjusted cohort default rate is great-
er than 10 percent for each of the 8 most 
recent fiscal years for which the adjusted 
cohort default rate is published; and 
‘‘(II) the Secretary determines that 
the institution has not made adequate 
progress in meeting standards for student 
achievement established by the relevant ac-
crediting agency or association pursuant to 
section 496(a)(5)(A) during such 8-year 
period; and 
‘‘(B) an institution whose adjusted cohort 
default rate is greater than 15 percent for each 
of the 6 most recent fiscal years for which the 
adjusted cohort default rate is published— 
‘‘(i) shall be ineligible to receive Fed-
eral Pell Grants under section 401 on be-
half of any student who enrolls in the insti-
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tution for the first-time after the expira-
tion of such 6-year period; 
‘‘(ii) shall be subject to ongoing track-
ing and monitoring by the Secretary to de-
termine the progress of the institution in 
meeting the standards for student achieve-
ment described in subparagraph (A)(ii)(II); 
and 
‘‘(iii) if the institution shows no im-
provement on meeting the standards for 
student achievement described in subpara-
graph (A)(ii)(II) within a 2-year period, 
such institution shall be ineligible to re-
ceive Federal loans under this title on be-
half of any student who enrolls in the insti-
tution for the first time after the expira-
tion of such 2-year period. 
‘‘(10) APPLICATION OF SECTION 435(a) TO AD-
JUSTED COHORT DEFAULT RATE.—Beginning on the 
date on which the final adjusted cohort default rates 
are published by the Secretary for not less than 3 
fiscal years— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘paragraph (9)’ for ‘paragraph (2)’ 
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‘‘(B) paragraph (3) shall be applied by 
substituting ‘adjusted cohort default rate, cal-
culated 
in 
accordance 
with 
subsection 
(m)(1)(E), is equal to or greater than 20 per-
cent’ for ‘cohort default rate, calculated in ac-
cordance with subsection (m), is equal to or 
greater than the threshold percentage specified 
in paragraph (2)(B)(iv)’; 
‘‘(C) paragraph (4) shall be applied— 
‘‘(i) in subparagraph (C), by sub-
stituting ‘adjusted cohort default rate 
equals or exceeds 15 percent’ for ‘cohort 
default rate equals or exceeds 20 percent’; 
and 
‘‘(ii) in the matter following subpara-
graph (C), by substituting ‘adjusted cohort 
default rate to reflect the percentage of de-
faulted loans in the representative sample 
that are required to be excluded pursuant 
to subsection (m)(1)(B)’ for ‘cohort default 
rate to reflect the percentage of defaulted 
loans in the representative sample that are 
required to be excluded pursuant to sub-
section (m)(1)(B)’; 
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‘‘(D) paragraph (5)(A) shall be applied by 
substituting ‘paragraph (9)’ for ‘paragraph (2)’; 
‘‘(E) paragraph (6) shall be applied— 
‘‘(i) in subparagraph (A)— 
‘‘(I) in the matter preceding 
clause (i), by substituting ‘Any insti-
tution that has an adjusted cohort de-
fault rate that equals or exceeds 15 
percent’ for ‘After July 1, 1999, any 
institution that has a cohort default 
rate that equals or exceeds 25 per-
cent’; and 
‘‘(II) in clause (i), by sub-
stituting ‘has an adjusted cohort de-
fault rate that is less than 15%’ for 
‘by July 1, 2004, have a cohort de-
fault rate that is less than 25 per-
cent’; and 
‘‘(ii) in subparagraph (B), by sub-
stituting ‘has an adjusted cohort default 
rate that is less than 15%’ for ‘by July 1, 
2004, have a cohort default rate that is 
less than 25 percent’; 
‘‘(F) paragraph (7) shall be applied— 
‘‘(i) in subparagraph (A)(i)— 
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‘‘(I) in the matter preceding sub-
clause (I), by substituting ‘adjusted 
cohort default rate is equal to or 
greater than 20 percent’ for ‘cohort 
default rate is equal to or greater 
than the threshold percentage speci-
fied in paragraph (2)(B)(iv)’; and 
‘‘(II) in subclauses (I) and (II), 
by substituting ‘adjusted cohort de-
fault rate’ for ‘cohort default rate’; 
and 
‘‘(ii) in subparagraph (B)(i), by sub-
stituting ‘adjusted cohort default rate is 
equal to or greater than 20 percent’ for 
‘cohort default rate is equal to or greater 
than the threshold percentage specified in 
paragraph (2)(B)(iv)’; and 
‘‘(G) paragraph (8) shall be applied by 
substituting ‘adjusted cohort default rate’ for 
‘cohort default rate’ both places it appears. 
‘‘(11) EXCEPTION
FOR
TRANSITION
TO
AD-
JUSTED COHORT DEFAULT RATE METRIC.— 
‘‘(A) IN
GENERAL.—During a period of 
transition to using an adjusted cohort default 
rate, any public institution with an adjusted co-
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hort default rate that equals or exceeds 20 per-
cent may request a transition exception to con-
tinue to be an eligible institution for purposes 
of title IV. 
‘‘(B) EXCEPTION REVIEW.—The Secretary, 
with respect to an institution requesting an ex-
ception under subparagraph (A), shall— 
‘‘(i) review such institution to deter-
mine whether during year 4 of repayment 
the institution’s default rate rose higher 
than the default rate during year 3 of re-
payment; and 
‘‘(ii) if such rate is higher than 10 
percent, require such institution to develop 
a default management plan as specified in 
section 435(a)(7). 
‘‘(C) TRANSITION PERIOD LIMIT.—An ex-
ception under subparagraph (A) shall expire not 
later than 2 years after the date on which the 
first year of the adjusted cohort default rate is 
published with respect to the institution for 
which the exception applies.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
435(a)(2) of the Higher Education Act of 1965 (20 
U.S.C. 1085(a)) is amended— 
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(A) in the paragraph heading, by adding at 
the end the following: ‘‘BEFORE FISCAL YEAR 
2016’’; and 
(B) in subparagraph (B)(iv), by striking 
‘‘and any succeeding fiscal year’’ and inserting 
‘‘through fiscal year 2015’’. 
(b) ADJUSTED COHORT DEFAULT RATE DEFINED.— 
Section 435(m)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1085(m)(1)) is amended by adding at the end 
the following: 
‘‘(E)(i) With respect to a cohort default 
rate calculated for an institution under this 
paragraph for fiscal year 2016 and for each 
succeeding fiscal year, such cohort default rate 
shall be adjusted as follows: 
‘‘(I) In determining the number of 
current and former students at an institu-
tion who enter repayment for such fiscal 
year— 
‘‘(aa) any such student who is in 
nonmandatory forbearance for such 
fiscal year for a period of greater than 
18 months but less than 36 months 
shall not be counted as entering re-
payment for such fiscal year; 
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‘‘(bb) such a student shall be 
counted as entering repayment for the 
first fiscal year for which the student 
ceases to be in a period of forbearance 
and otherwise meets the requirements 
for being in repayment; and 
‘‘(cc) any such student who is in 
a period of forbearance for 3 or more 
years shall be counted as in default 
and included in the institution’s total 
number of students in default. 
‘‘(II) Such rate shall be multiplied by 
the percentage of students enrolled at the 
institution for such fiscal year who are 
borrowing a loan under part D of this title. 
‘‘(ii) The result obtained under this sub-
paragraph for an institution shall be referred to 
in this Act as the ‘adjusted cohort default 
rate’.’’. 
(c) PUBLICATION OF ADJUSTED COHORT DEFAULT 
RATE.—Section 435(m) of the Higher Education Act of 
1965 (20 U.S.C. 1085(m)) is amended by adding at the 
end the following: 
‘‘(5) Beginning on the date on which the final 
adjusted cohort default rates for fiscal year 2016 are 
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made available for publication by the Secretary, 
paragraph (4) shall be applied by substituting ‘ad-
justed cohort default’ with ‘cohort default’.’’. 
SEC. 4046. CONFORMING AMENDMENTS. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is amended in section 435(a)(5)(A)(i)(I) (20 
U.S.C. 1085(a)(5)(A)(i)(I)), by striking ‘‘under section 
401(b)(2)(A)’’ and inserting ‘‘, as appropriate, under sec-
tion 401(b)(2)(A) (as in effect on the day before the effec-
tive date of the Aim Higher Act) or section 401(b)(1).’’. 
SEC. 4047. AUTOMATIC INCOME MONITORING PROCEDURES 
AFTER 
A 
TOTAL 
AND 
PERMANENT 
DIS-
ABILITY DISCHARGE. 
Section 437(a) of the Higher Education Act of 1965 
(20 U.S.C. 1087(a)) is amended by adding at the end the 
following: 
‘‘(3) AUTOMATIC INCOME MONITORING.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of the Aim Higher 
Act, the Secretary shall establish and imple-
ment, with respect to any borrower described in 
subparagraph (B), procedures to— 
‘‘(i) obtain (for each year of the in-
come-monitoring period described in sub-
paragraph (B) and without further action 
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by the borrower) such information as is 
reasonably necessary regarding the income 
of such borrower (and the borrower’s 
spouse, if applicable) for the purpose of de-
termining the borrower’s continued eligi-
bility for the loan discharge described in 
subparagraph (B) for such year, and any 
other information necessary to determine 
such continued eligibility of the borrower 
for such year, except that— 
‘‘(I) in the case of a borrower 
whose returns and return information 
indicate that the borrower has no 
earned income for any year of such 
income-monitoring period, such bor-
rower shall be treated as not having 
earned income in excess of the poverty 
line for such year subject to clause 
(ii); 
‘‘(ii) allow the borrower, at any time, 
to opt out of clause (i) and prevent the 
Secretary 
from 
obtaining 
information 
under such clause without further action 
by the borrower; and 
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‘‘(iii) provide the borrower with an op-
portunity to update the information ob-
tained under clause (i) before the deter-
mination of the borrower’s continued eligi-
bility for such loan discharge for such 
year. 
‘‘(B) APPLICABILITY.—Subparagraph (A) 
shall apply— 
‘‘(i) to each borrower of a covered 
loan (defined in section 455(d)(10)) that is 
discharged under this subsection or section 
464(c)(1)(F) due to the permanent and 
total disability of the borrower; and 
‘‘(ii) during the income-monitoring pe-
riod under this subsection, defined in this 
paragraph as the period— 
‘‘(I) beginning on the date on 
which such loan is so discharged; and 
‘‘(II) during which the Secretary 
determines whether a reinstatement of 
the obligation of, and resumption of 
collection on, such loan may be nec-
essary.’’. 
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SEC. 4048. REPAYMENT OF PARENT LOANS DUE TO STU-
DENT DISABILITY. 
Section 437(d) of the Higher Education Act of 1965 
(20 U.S.C. 1087(d)) is amended— 
(1) by striking ‘‘If a student’’ and inserting the 
following: 
‘‘(1) DEATH.—If a student’’; and 
(2) by adding at the end the following: 
‘‘(2) DISABILITY.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
discharge a parent’s liability on a loan de-
scribed in section 428B by repaying the amount 
owed on the loan if the student on whose behalf 
the parent has received the loan— 
‘‘(i) becomes permanently and totally 
disabled (as determined in accordance with 
regulations of the Secretary); or 
‘‘(ii) is unable to engage in any sub-
stantial gainful activity by reason of any 
medically determinable physical or mental 
impairment that can be expected to result 
in death, has lasted for a continuous pe-
riod of not less than 60 months, or can be 
expected to last for a continuous period of 
not less than 60 months. 
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‘‘(B) DISABILITY DETERMINATIONS.—Sub-
section (a)(2) shall apply to a disability deter-
mination under this paragraph in the same 
manner as such subsection applies to a deter-
mination under subsection (a)(1). 
‘‘(C) SAFEGUARDS.—The safeguards to 
prevent fraud and abuse developed under sub-
section (a)(1) shall apply under this paragraph. 
‘‘(D) REINSTATEMENT
OF
LOANS.—The 
Secretary may promulgate regulations to rein-
state the obligation of, and resume collection 
on, loans discharged under this paragraph in 
cases in which the Secretary determines that 
the reinstatement and resumption is necessary 
and appropriate based upon the regulations de-
veloped under subsection (a)(1).’’. 
PART C 
SEC. 4051. PURPOSE; AUTHORIZATION OF APPROPRIA-
TIONS. 
Section 441 of the Higher Education Act of 1965 (20 
U.S.C. 1087–51) is amended— 
(1) in subsection (b), by striking ‘‘part, such 
sums as may be necessary for fiscal year 2009 and 
each of the five succeeding fiscal years.’’ and insert-
ing ‘‘part— 
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‘‘(1) $1,500,000,000 for fiscal year 2019; 
‘‘(2) $1,750,000,000 for fiscal year 2020; 
‘‘(3) $2,000,000,000 for fiscal year 2021; 
‘‘(4) $2,250,000,000 for fiscal year 2022; and 
‘‘(5) $2,500,000,000 for fiscal year 2023 and 
each succeeding fiscal year.’’; 
(2) in subsection (c)— 
(A) in paragraph (3), by striking ‘‘and’’; 
(B) in paragraph (4)(C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) work-based learning designed to give stu-
dents experience in any activity described in para-
graph (1), (2), (3), or (4), whether or not credit is 
awarded.’’; and 
(3) by adding at the end the following: 
‘‘(d) WORK-BASED LEARNING DEFINED.—For pur-
poses of this part, the term ‘work-based learning’ means 
sustained interactions with industry, community, or aca-
demic professionals in real workplace settings that— 
‘‘(1) foster in-depth, first-hand engagement 
with the tasks required of a given career field that 
are aligned to a student’s field of study; and 
‘‘(2) may include internships, fellowships, and 
apprenticeships.’’. 
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SEC. 4052. ALLOCATION FORMULA. 
Section 442 of the Higher Education Act of 1965 (20 
U.S.C. 1087–52) is amended to read as follows: 
‘‘(a) RESERVATIONS.— 
‘‘(1) RESERVATION
FOR
IMPROVED
INSTITU-
TIONS.— 
‘‘(A) AMOUNT OF RESERVATION FOR IM-
PROVED
INSTITUTIONS.—Beginning with the 
first fiscal year that is 2 years after the date 
of the enactment of the Aim Higher Act of 
2018, for a fiscal year in which the amount ap-
propriated 
under 
section 
441(b) 
exceeds 
$700,000,000, the Secretary shall— 
‘‘(i) reserve the lesser of— 
‘‘(I) an amount equal to 20 per-
cent of the amount by which the 
amount appropriated under section 
441(b) exceeds $700,000,000; or 
‘‘(II) $150,000,000; and 
‘‘(ii) allocate the amount reserved 
under clause (i) to each improved institu-
tion in an amount equal to the greater of 
the following: 
‘‘(I) The amount that bears the 
same proportion to the amount re-
served under clause (i) as the total 
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amount of all Federal Pell Grant 
funds awarded at the improved insti-
tution for the second preceding fiscal 
year bears to the total amount of Fed-
eral Pell Grant funds awarded at im-
proved institutions participating under 
this part for the second preceding fis-
cal year. 
‘‘(II) $5,000. 
‘‘(B) 
IMPROVED
INSTITUTION
DE-
SCRIBED.—For purposes of this paragraph, an 
improved institution is an institution that, on 
the date the Secretary makes an allocation 
under subparagraph (A)(ii)— 
‘‘(i) is an institution of higher edu-
cation (as defined under section 101); 
‘‘(ii) meets the requirements of sub-
section (d)(5); and 
‘‘(iii) is with respect to— 
‘‘(I) the completion rate or grad-
uation rate of Federal Pell Grant re-
cipients at the institution, in the top 
75 percent of all institutions partici-
pating under this part for the pre-
ceding fiscal year; 
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‘‘(II) the percentage of Federal 
Pell Grant recipients at the institu-
tion, in the top 50 percent of the in-
stitutions described in subclause (I); 
and 
‘‘(III) the annual increase in the 
completion rate or graduation rate of 
Federal Pell Grant recipients at the 
institution, in the top 50 percent of 
the institutions described in sub-
clauses (I) and (II). 
‘‘(C) COMPLETION RATE OR GRADUATION 
RATE.—For purposes of determining the com-
pletion rate or graduation rate under this sec-
tion, a Federal Pell Grant recipient who is ei-
ther a full-time student or a part-time student 
shall be counted as a completer or graduate if, 
within 150 percent of the normal time for com-
pletion of or graduation from the program, the 
student has completed or graduated from the 
program, or enrolled in any program of an in-
stitution participating in any program under 
this title for which the prior program provides 
substantial preparation. 
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‘‘(2) RESERVATION
FOR
GRANT
PROGRAM.— 
From the amount appropriated under section 441(b) 
for a fiscal year and remaining after the Secretary 
reserves funds under subparagraph (A), the Sec-
retary shall reserve $30,000,000 to carry out grants 
under section 449. 
‘‘(3) REALLOCATION OF AMOUNT RETURNED BY 
IMPROVED INSTITUTIONS.—If an institution returns 
to the Secretary any portion of the sums allocated 
to such institution under this subsection for any fis-
cal year, the Secretary shall reallot such excess to 
improved institutions on the same basis as under 
paragraph (1)(A). 
‘‘(4) PUBLICATION.—Beginning 1 year after 
the first allocations are made to improved institu-
tions under paragraph (1)(A) and annually there-
after, the Secretary shall make publicly available— 
‘‘(A) a list of the improved institutions 
that received funding under such paragraph in 
the prior fiscal year; 
‘‘(B) the percentage of students at each 
such improved institution that are Federal Pell 
Grant recipients; 
‘‘(C) the completion rate or graduation 
rate for the students described in subparagraph 
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(B) with respect to each such improved institu-
tion; and 
‘‘(D) a comparison between the informa-
tion described in subparagraphs (A), (B), and 
(C) for the prior fiscal year for such improved 
institution, and such information for the year 
prior to such year. 
‘‘(b) ALLOCATION FORMULA
FOR FISCAL YEARS 
2019 THROUGH 2023.— 
‘‘(1) IN GENERAL.—From the amount appro-
priated under section 441(b) for a fiscal year and re-
maining after the Secretary reserves funds under 
subsection (a), the Secretary shall allocate to each 
institution— 
‘‘(A) for fiscal year 2019, an amount equal 
to the greater of— 
‘‘(i) 90 percent of the amount the in-
stitution received under this subsection 
and subsection (a) for fiscal year 2018, as 
such subsections were in effect with re-
spect to such fiscal year (in this subpara-
graph referred to as ‘the 2018 amount for 
the institution’); or 
‘‘(ii) the fair share amount for the in-
stitution determined under subsection (d); 
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‘‘(B) for fiscal year 2020, an amount equal 
to the greater of— 
‘‘(i) 80 percent of the 2018 amount 
for the institution; or 
‘‘(ii) the fair share amount for the in-
stitution determined under subsection (d); 
‘‘(C) for fiscal year 2021, an amount equal 
to the greater of— 
‘‘(i) 60 percent of the 2018 amount 
for the institution; or 
‘‘(ii) the fair share amount for the in-
stitution determined under subsection (d); 
‘‘(D) for fiscal year 2022, an amount equal 
to the greater of— 
‘‘(i) 40 percent of the 2018 amount 
for the institution; or 
‘‘(ii) the fair share amount for the in-
stitution determined under subsection (d); 
and 
‘‘(E) for fiscal year 2023, an amount equal 
to the greater of— 
‘‘(i) 20 percent of the 2018 amount 
for the institution; or 
‘‘(ii) the fair share amount for the in-
stitution determined under subsection (d). 
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‘‘(2) RATABLE REDUCTION.— 
‘‘(A) IN GENERAL.—If the amount appro-
priated under section 441(b) for a fiscal year 
and remaining after the Secretary reserves 
funds under subsection (a) is less than the 
amount required to be allocated to the institu-
tions under this subsection, then the amount of 
the allocation to each institution shall be rat-
ably reduced. 
‘‘(B) ADDITIONAL
APPROPRIATIONS.—If 
the amounts allocated to each institution are 
ratably reduced under subparagraph (A) for a 
fiscal year and additional amounts are appro-
priated for such fiscal year, the amount allo-
cated to each institution from the additional 
amounts shall be increased on the same basis as 
the amounts under subparagraph (A) were re-
duced (until each institution receives the 
amount required to be allocated under this sub-
section). 
‘‘(c) ALLOCATION FORMULA FOR FISCAL YEAR 2024 
AND EACH SUCCEEDING FISCAL YEAR.—Except as pro-
vided in subsection (d)(5), from the amount appropriated 
under section 441(b) for fiscal year 2024 and each suc-
ceeding fiscal year and remaining after the Secretary re-
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serves funds under subsection (a), the Secretary shall allo-
cate to each institution the fair share amount for the insti-
tution determined under subsection (d). 
‘‘(d) DETERMINATION OF FAIR SHARE AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the fair share amount for an institution for a fiscal 
year shall be equal to the sum of— 
‘‘(A) 100 percent of the institution’s un-
dergraduate student need described in para-
graph (2) for the preceding fiscal year; and 
‘‘(B) 25 percent of the institution’s grad-
uate student need described in paragraph (3) 
for the preceding fiscal year. 
‘‘(2) INSTITUTIONAL
UNDERGRADUATE
STU-
DENT NEED.—The undergraduate student need for 
an institution for a fiscal year shall be equal to the 
sum of the following: 
‘‘(A) An amount equal to 50 percent of the 
amount that bears the same proportion to the 
available appropriated amount for such fiscal 
year as the total amount of Federal Pell Grant 
funds awarded at the institution for the pre-
ceding fiscal year bears to the total amount of 
Federal Pell Grant funds awarded at all institu-
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tions participating under this part for the pre-
ceding fiscal year. 
‘‘(B) An amount equal to 50 percent of the 
amount that bears the same proportion to the 
available appropriated amount for such fiscal 
year as the total amount of the undergraduate 
student need at the institution for the preceding 
fiscal year bears to the total amount of under-
graduate student need at all institutions partici-
pating under this part for the preceding fiscal 
year. 
‘‘(3) 
INSTITUTIONAL
GRADUATE
STUDENT 
NEED.—The graduate student need for an institu-
tion for a fiscal year shall be equal to the amount 
that bears the same proportion to the available ap-
propriated amount for such fiscal year as the total 
amount of the graduate student need at the institu-
tion for the preceding fiscal year bears to the total 
amount of graduate student need at all institutions 
participating under this part for the preceding fiscal 
year. 
‘‘(4) ELIGIBILITY FOR FAIR SHARE AMOUNT.— 
The Secretary may not allocate funds under this 
part to any institution that, for two or more fiscal 
years during any three fiscal year period beginning 
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not earlier than the first day of the first fiscal year 
that is 2 years after the date of the enactment of 
this paragraph, has— 
‘‘(A) a student population with less than 7 
percent of undergraduate students who are re-
cipients of Federal Pell Grants; or 
‘‘(B) if the institution only enrolls grad-
uate students, a student population with less 
than 5 percent of students that have an ex-
pected family contribution of zero. 
‘‘(5) DEFINITIONS.—In this subsection: 
‘‘(A) 
AVAILABLE
APPROPRIATED 
AMOUNT.—In this section, the term ‘available 
appropriated amount’ means— 
‘‘(i) the amount appropriated under 
section 441(b) for a fiscal year, minus 
‘‘(ii) the amounts reserved under sub-
section (a) for such fiscal year. 
‘‘(B) AVERAGE COST OF ATTENDANCE.— 
The term ‘average cost of attendance’ means, 
with respect to an institution, the average of 
the attendance costs for a fiscal year for stu-
dents which shall include— 
‘‘(i) tuition and fees, computed on the 
basis of information reported by the insti-
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tution to the Secretary, which shall in-
clude— 
‘‘(I) total revenue received by the 
institution from undergraduate and 
graduate tuition and fees for the sec-
ond year preceding the year for which 
it is applying for an allocation; and 
‘‘(II) the institution’s enrollment 
for such second preceding year; 
‘‘(ii) standard living expenses equal to 
150 percent of the difference between the 
income protection allowance for a family of 
five with one in college and the income 
protection allowance for a family of six 
with one in college for a single independent 
student; and 
‘‘(iii) books and supplies, in an 
amount not exceeding $1,000. 
‘‘(C) GRADUATE
STUDENT
NEED.—The 
term ‘graduate student need’ means, with re-
spect to a graduate student for a fiscal year, 
the lesser of the following: 
‘‘(i) The amount equal to (except the 
amount computed by this clause shall not 
be less than zero)— 
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‘‘(I) the average cost of attend-
ance for the preceding fiscal year, 
minus 
‘‘(II) each such graduate stu-
dent’s expected family contribution 
(computed in accordance with part F 
of this title) for the preceding fiscal 
year. 
‘‘(ii) The total loan limit for a Federal 
Direct Unsubsidized Stafford Loan. 
‘‘(D) UNDERGRADUATE STUDENT NEED.— 
The term ‘undergraduate student need’ means, 
with respect to an undergraduate student for a 
fiscal year, the lesser of the following: 
‘‘(i) The total of the amount equal to 
(except the amount computed by this 
clause shall not be less than zero)— 
‘‘(I) the average cost of attend-
ance for the fiscal year, minus 
‘‘(II) each such undergraduate 
student’s expected family contribution 
(computed in accordance with part F 
of this title) for the preceding fiscal 
year. 
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‘‘(ii) The total loan limit for a Federal 
Direct Unsubsidized Stafford Loan and a 
Federal Direct Loan. 
‘‘(e) RETURN OF SURPLUS ALLOCATED FUNDS.— 
‘‘(1) IN
GENERAL.—Except with respect to 
funds returned under subsection (a)(3), if an institu-
tion returns to the Secretary any portion of the 
sums allocated to such institution under this section 
for any fiscal year, the Secretary shall reallot such 
excess to institutions that used at least 10 percent 
of the total amount of funds granted to such institu-
tion under this section to compensate students em-
ployed during a qualified period of nonenrollment 
(as such term is defined in section 443(f)) on the 
same basis as excess eligible amounts are allocated 
under subsection (d). 
‘‘(2) USE OF FUNDS.—Funds received by insti-
tutions pursuant to this subsection shall be used to 
compensate students employed in work-based learn-
ing positions. 
‘‘(3) RETAINED FUNDS.— 
‘‘(A) AMOUNT RETURNED.—If an institu-
tion returns more than 10 percent of its alloca-
tion under paragraph (1), the institution’s allo-
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cation for the next fiscal year shall be reduced 
by the amount returned. 
‘‘(B) WAIVER.—The Secretary may waive 
this paragraph for a specific institution if the 
Secretary finds that enforcing this paragraph 
would be contrary to the interest of the pro-
gram. 
‘‘(f) FILING DEADLINES.—The Secretary may re-
quire applications under this section, at such time, in such 
manner, and containing such information as the Secretary 
may require.’’. 
SEC. 4053. GRANTS FOR FEDERAL WORK-STUDY PRO-
GRAMS. 
Section 443 of the Higher Education Act of 1965 (20 
U.S.C. 1087–53) is amended— 
(1) in subsection (b)— 
(A) by amending paragraph (2)(A) to read 
as follows: 
‘‘(A) for fiscal year 2019 and succeeding 
fiscal years, an institution shall (unless the Sec-
retary determines that enforcing this subpara-
graph would cause hardship for students at the 
institution) use— 
‘‘(i) at least 7 percent of the total 
amount of funds granted to such institu-
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350 
tion under this section for such fiscal year 
to compensate students employed in work- 
based learning positions; and 
‘‘(ii) at least 3 percent of the total 
amount of funds granted to such institu-
tion under this section for such fiscal year 
to compensate students who have excep-
tional 
need 
(as 
defined 
in 
section 
413C(c)(2)) and are employed in a work- 
based learning position during a qualified 
period of nonenrollment, as defined in sub-
section (f).’’; 
(B) in paragraph (4)— 
(i) by striking ‘‘$300’’ and inserting 
‘‘$500’’; and 
(ii) by inserting ‘‘except as provided 
under subsection (f),’’ before ‘‘provide’’; 
(C) in paragraph (5), by striking ‘‘75 per-
cent’’ each place it appears and inserting ‘‘75 
percent in the first year after the date of the 
enactment of the Aim Higher Act, 65 percent 
in the first succeeding fiscal year, 60 percent in 
the second succeeding fiscal year, 55 percent in 
the third succeeding fiscal year, and 50 percent 
each succeeding fiscal year’’; 
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(D) in paragraph (6)— 
(i) by inserting ‘‘who demonstrate ex-
ceptional need (as defined in section 
413C(c)(2))’’ after ‘‘students’’; and 
(ii) by inserting after ‘‘institution’’, 
‘‘and prioritize employment for students 
who are currently or formerly homeless 
children and youths (as such term is de-
fined in section 725 of the McKinney- 
Vento Homeless Assistance act (42 U.S.C. 
11434a)) or foster care children and 
youth’’; 
(E) in paragraph (7), by striking ‘‘voca-
tional’’ and inserting ‘‘career’’; 
(F) in paragraph (8)(A)(i), by striking ‘‘or 
vocational goals’’ and inserting ‘‘career goals’’; 
(G) in paragraph (10), by striking ‘‘; and’’ 
and inserting a semicolon; 
(H) in paragraph (11), by striking the pe-
riod at the end and inserting a semicolon; and 
(I) by adding at the end the following: 
‘‘(12) provide assurances that compensation of 
students employed in the work-study program in ac-
cordance with the agreement shall include reim-
bursement for reasonable travel (not including the 
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purchase of a vehicle) directly related to such work- 
study program; 
‘‘(13) provide assurances that the institution 
will administer and use feedback from the surveys 
required under section 450, to improve the experi-
ences of students employed in the work-study pro-
gram in accordance with the agreement; 
‘‘(14) provide assurances that the institution 
will collect data from students and employers such 
that the employment made available from funds 
under this part will, to the maximum extent prac-
ticable, complement and reinforce the educational 
goals or career goals of each student receiving as-
sistance under this part; and 
‘‘(15) provide assurances that if the institution 
receives funds under section 442(a)(1)(A), such in-
stitution shall— 
‘‘(A) use such funds to compensate stu-
dents employed in the work-study program in 
accordance with the agreement; and 
‘‘(B) prioritize the awarding of such funds 
(and increasing the amount of each award) to 
students— 
‘‘(i) who demonstrate exceptional need 
(as defined in section 413C(c)(2)); and 
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‘‘(ii) who are employed in work-based 
learning opportunities through the work 
study program in accordance with the 
agreement.’’; 
(2) in subsection (c)— 
(A) by striking paragraph (2); 
(B) by inserting after paragraph (1) the 
following: 
‘‘(2) provide assurances that compensation of 
students employed in the work-study program in ac-
cordance with the agreement shall include reim-
bursement for reasonable travel (not including the 
purchase of a vehicle) directly related to such work- 
study program.’’; and 
(C) in paragraph (4), by inserting ‘‘and 
complement and reinforce the educational goals 
or career goals of each student receiving assist-
ance under this part’’ after ‘‘academically rel-
evant’’; 
(3) in subsection (d)(1)— 
(A) by striking ‘‘In any academic year to 
which subsection (b)(2)(A) applies, an institu-
tion shall ensure that’’ and inserting ‘‘An insti-
tution may use the’’; and 
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(B) by striking ‘‘travel’’ and inserting 
‘‘reasonable travel (not including the purchase 
of a vehicle)’’; 
(4) in subsection (e)(3), by striking ‘‘75’’ and 
inserting ‘‘50’’; and 
(5) by adding at the end the following: 
‘‘(f) QUALIFIED PERIOD OF NONENROLLMENT.— 
‘‘(1) IN GENERAL.—A student may be awarded 
work-study employment during a qualified period of 
nonenrollment if— 
‘‘(A) the student demonstrates exceptional 
need (as defined in section 413C(c)(2)) in the 
award year prior to the qualified period of non-
enrollment; 
‘‘(B) the student is employed in a work- 
based learning position; and 
‘‘(C) the employment— 
‘‘(i) involves less than 25 percent ad-
ministrative work; and 
‘‘(ii) is for at least 20 hours per week, 
unless the institution waives such require-
ment— 
‘‘(I) at the request of the stu-
dent; or 
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‘‘(II) based on a finding by the 
institution that such requirement pre-
sents a hardship in finding a work- 
based learning position for the stu-
dent. 
‘‘(2) FUNDS EARNED.— 
‘‘(A) IN GENERAL.—Any funds earned by 
a student (beyond standard living expenses (as 
such 
term 
is 
described 
in 
section 
413D(c)(3)(C))) during the qualified period of 
nonenrollment less than or equal to $2,500 may 
not be applied to such student’s cost of attend-
ance for the next period in which the student 
is enrolled. 
‘‘(B) EXCESS FUNDS.—Any funds earned 
by a student (beyond standard living expenses 
(as 
such 
term 
is 
described 
in 
section 
413D(c)(3)(C))) during the qualified period of 
nonenrollment in excess of $2,500 shall be ap-
plied to such student’s cost of attendance for 
the next period in which the student is enrolled. 
‘‘(3) DEFINITION
OF
QUALIFIED
PERIOD
OF 
NONENROLLMENT.—In this subsection, the term 
‘qualified period of nonenrollment’ means, with re-
spect to a student, a period of nonenrollment that— 
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‘‘(A) occurs between a period of enrollment 
and a period of anticipated enrollment; and 
‘‘(B) the duration of which is no longer 
than 6 months.’’. 
SEC. 4054. FLEXIBLE USE OF FUNDS. 
Section 445 of the Higher Education Act of 1965 (20 
U.S.C. 1087–55) is amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(3) In addition to the carry-over sums author-
ized under paragraph (1) of this section, an institu-
tion may permit a student who completed the pre-
vious award period to continue to earn unearned 
portions of the student’s work-study award from 
that previous period if— 
‘‘(A) any reduction in the student’s need 
upon which the award was based is accounted 
for in the remaining portion; and 
‘‘(B) the student is currently employed in 
a work-based learning position.’’; and 
(2) by striking ‘‘10 percent’’ both places it ap-
pears and inserting ‘‘20 percent’’. 
SEC. 4055. JOB LOCATION AND DEVELOPMENT PROGRAMS. 
(a) AMENDMENTS.—Section 446 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087–56) is amended— 
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(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘10 per-
cent or $75,000’’ and inserting ‘‘20 percent or 
$150,000’’; and 
(B) in paragraph (2), by striking ‘‘voca-
tional’’ and inserting ‘‘career’’; and 
(2) in subsection (b)— 
(A) by striking paragraphs (1) and (2); 
and 
(B) by inserting before paragraph (3) the 
following: 
‘‘(1) provide satisfactory assurance that the in-
stitution will prioritize placing students with excep-
tional need (as defined in section 413C(c)(2)) and 
Federal work-study recipients in jobs located and de-
veloped under this section; and 
‘‘(2) provide satisfactory assurances that the 
funds available under this section will be used to lo-
cate and develop work-based learning positions;’’; 
and 
(C) in paragraph (6), by striking the pe-
riod and inserting ‘‘, including— 
‘‘(A) the number of students employed in 
work-based learning positions through such pro-
gram; 
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‘‘(B) 
the 
number 
of 
students 
dem-
onstrating exceptional need (as defined in sec-
tion 413C(c)(2)) and Federal work-study recipi-
ents employed through such program; and 
‘‘(C) 
the 
number 
of 
students 
dem-
onstrating exceptional need (as defined in sec-
tion 413C(c)(2)) and Federal work-study recipi-
ents employed in work-based learning positions 
through such program.’’. 
(b) CLARIFICATION ON CARRY-OVER AUTHORITY.— 
Of the sums granted to an eligible institution under part 
C of title IV of the Higher Education Act (20 U.S.C. 
1087–51) for any fiscal year, 10 percent may, at the dis-
cretion of the institution, remain available for expenditure 
during the succeeding fiscal year to carry out programs 
under such part, including the job location and develop-
ment programs under section 446 of such Act (20 U.S.C. 
1087–56). 
SEC. 4056. COMMUNITY SERVICE. 
Section 447 of the Higher Education Act of 1965 (20 
U.S.C. 1087–57) is amended to read as follows: 
‘‘SEC. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY 
SERVICE WORK STUDY PROGRAMS. 
‘‘Each institution participating under this part may 
use up to 10 percent of the funds made available under 
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section 489(a) and attributable to the amount of the insti-
tution’s expenditures under this part to conduct that insti-
tution’s program of community service-learning, includ-
ing— 
‘‘(1) development of mechanisms to assure the 
academic quality of the student experience; 
‘‘(2) assuring student access to educational re-
sources, expertise, and supervision necessary to 
achieve community service objectives; 
‘‘(3) assuring, to the maximum extent prac-
ticable, that the community service-learning program 
will support the educational goals or career goals of 
students participating in such program; 
‘‘(4) collaboration with public and private non-
profit agencies, and programs assisted under the 
National and Community Service Act of 1990 in the 
planning, development, and administration of such 
programs; and 
‘‘(5) to recruit and compensate students for 
community service-learning (including compensation 
for time spent in training and for reasonable travel 
(not including the purchase of a vehicle) directly re-
lated to such community service).’’. 
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SEC. 4057. PILOT GRANT PROGRAM. 
Part C of title IV of the Higher Education Act (20 
U.S.C. 1087–51 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 449. WORK-BASED LEARNING OPPORTUNITIES PILOT 
GRANT PROGRAM. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a program to provide grants to eligible institu-
tions participating under this part to establish or ex-
pand a program to develop work-based learning posi-
tions. 
‘‘(2) LIMITATIONS.— 
‘‘(A) DURATION.—A grant awarded under 
this section shall be for a period of not more 
than 4 years, but may be renewed by the Sec-
retary for a period of 2 years. 
‘‘(B) AMOUNT.—A grant under this sec-
tion may not be in an amount greater than 
$1,000,000. 
‘‘(b) APPLICATION.—To be selected to receive a grant 
under this section an eligible institution participating 
under this part shall submit an application to the Sec-
retary at such time, in such manner, and containing such 
information as the Secretary may require, including a plan 
that describes how the eligible institution will establish or 
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expand a program to develop work-based learning posi-
tions that will— 
‘‘(1) benefit students who demonstrate excep-
tional need (as defined in section 413C(c)(2)); 
‘‘(2) identify high-demand occupations (as de-
termined by the Bureau of Labor and Statistics, 
State departments of labor, and local workforce in-
vestment boards) and develop partnerships with 
high-demand employers (including nonprofit organi-
zations, for-profit firms, or public agencies); 
‘‘(3) involve participating employers in evalu-
ating and improving such program; 
‘‘(4) track and report academic and employ-
ment outcomes for participating students; and 
‘‘(5) be able to continue after the end of the 
grant term. 
‘‘(c) USE OF FUNDS.—Grant funds awarded under 
this program shall be used to pay wages for students par-
ticipating under this program and develop work-based 
learning positions that— 
‘‘(1) are for a period of at least 12 weeks; 
‘‘(2) serve students who demonstrate excep-
tional need (as defined in section 413C(c)(2)); 
‘‘(3) limit administrative work to no more than 
25 percent of such position; 
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‘‘(4) provide a minimum of 15 hours of work 
per week during periods of enrollment and 30 hours 
per week during periods of nonenrollment, except 
such requirement may be waived by the institution 
in consultation with a student; 
‘‘(5) include career coaching from participating 
employers (including mock interviews, resume writ-
ing assistance, and counseling on applying for and 
attaining employment); and 
‘‘(6) provide participating students with oppor-
tunities to meet with employers in fields or indus-
tries related to those of participating employers. 
‘‘(d) REPORT.—On a date that is before the date on 
which the period of the grant received by an eligible insti-
tution under this section terminates, such institution shall 
submit a report to the Secretary including— 
‘‘(1) the graduation rate or completion rate (as 
described under section 442(a)(1)(C)) with respect 
to students participating in work-based learning po-
sitions under the pilot program; and 
‘‘(2) the results of the work-based learning op-
portunities program for which such institution re-
ceived such grant, including— 
‘‘(A) participating students’ satisfaction 
with the program as reported in surveys under 
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section 450, as amended by section 4178 of the 
Aim Higher Act; 
‘‘(B) the types of jobs in which partici-
pating students were employed and the types of 
duties performed in such jobs; 
‘‘(C) the academic programs of the partici-
pating students; 
‘‘(D) the share of participating students 
who worked at another job, in addition to the 
one under the pilot program; 
‘‘(E) the percentage of participating stu-
dents who, during the second quarter after 
completing their academic program, are in edu-
cation or training activities or unsubsidized em-
ployment; 
‘‘(F) the percentage of participating stu-
dents employed in high-demand occupations 
within 2 quarters of completing their academic 
programs; and 
‘‘(G) other items as deemed relevant by the 
Secretary. 
‘‘(e) RESERVATION OF FUNDING FOR SUCH PRO-
GRAM.—From the amount appropriated under section 
441(b) for a fiscal year and remaining after the Secretary 
reserves funds under section 442(a)(1), the Secretary shall 
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reserve $30,000,000 to carry out grants under this sec-
tion.’’. 
SEC. 4058. DEPARTMENT ACTIVITIES. 
Part C of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087–51 et seq.) is further amended by 
adding at the end the following: 
‘‘SEC. 450. DEPARTMENT ACTIVITIES. 
‘‘(a) SURVEYS.—Not later than 1 year after the date 
of the enactment of this section, the Secretary shall de-
velop, in consultation with work-study administrators from 
institutions of higher education, participating employers, 
and participating students— 
‘‘(1) a consumer-tested electronic survey for 
students awarded work-study employment under the 
Federal work-study program under this part that— 
‘‘(A) measures each such student’s satis-
faction with the Federal work-study program, 
including— 
‘‘(i) any complaints the student has 
with respect to the program; 
‘‘(ii) the amount and quality of the 
on-the-job training the student received; 
‘‘(iii) the amount and quality of on- 
the-job supervision and employer feedback 
the student received; 
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‘‘(iv) the amount and quality of infor-
mation provided by the institution about 
the work-study program and job opportuni-
ties and the availability of work-study staff 
at the institution; 
‘‘(v) the quality of the assistance pro-
vided by the institution to the student in 
finding a work-study job and the avail-
ability of types of jobs; and 
‘‘(vi) the student’s overall satisfaction 
with the work-study program; 
‘‘(B) measures the applicability of work- 
study employment to the educational goals and 
career goals of each such student; 
‘‘(C) elicits an assessment by each such 
student of the capacity to manage time between 
work-study employment and coursework; 
‘‘(D) measures, with respect to the pro-
gram— 
‘‘(i) the award amounts under the 
program; 
‘‘(ii) the average number of hours stu-
dents worked per week, and the wages re-
ceived for such work; 
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‘‘(iii) the number of on campus jobs 
and off campus jobs; 
‘‘(iv) how students located work-study 
positions; 
‘‘(v) the work performed at each job; 
‘‘(vi) whether students worked addi-
tional jobs while employed in a work-study 
job (and the reason for such additional 
job); 
‘‘(vii) whether the work-study employ-
ment had an impact on the student’s aca-
demic performance; and 
‘‘(viii) the voluntarily disclosed demo-
graphics of students awarded work-study 
employment; and 
‘‘(E) includes such information as the Sec-
retary may require; and 
‘‘(2) a consumer-tested electronic survey for 
employers of students described in paragraph (1) 
that— 
‘‘(A) measures each such employer’s satis-
faction with the Federal work-study program, 
including— 
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‘‘(i) the extent to which the employer 
is satisfied with its ability to accommodate 
students’ schedules; 
‘‘(ii) the extent to which student-em-
ployees are prepared for the duties adver-
tised for the job; and 
‘‘(iii) the extent to which the employer 
is satisfied with opportunities to make rec-
ommendations for improving institutions’ 
academic programs; 
‘‘(B) elicits an assessment by each such 
employer of— 
‘‘(i) any complaints the employer had 
with respect to the program; 
‘‘(ii) any skills or knowledge necessary 
for the job that student-employees are 
lacking; and 
‘‘(iii) the extent of outreach from in-
stitutions to the employer; and 
‘‘(C) includes such information as the Sec-
retary may require; and 
‘‘(3) a consumer-tested electronic survey that, 
not less than once every 4 years, with respect to 
each institution of higher education participating in 
the Federal work-study program, measures— 
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‘‘(D) the primary factors considered in 
awarding students work-study and in deter-
mining the amount of the award; 
‘‘(E) the acceptance rate among students 
who were offered work-study aid; and 
‘‘(F) other information the Secretary may 
require. 
‘‘(b) RESULTS.—The Secretary shall develop an on-
line portal— 
‘‘(1) for students, employers, and institutions of 
higher education to access the surveys required 
under subsection (a); and 
‘‘(2) to compile the results of such surveys. 
‘‘(c) REPORT.—Not less than once every 4 years after 
the date of the enactment of this subsection, the Secretary 
shall submit a report to Congress that includes— 
‘‘(1) the data collected under this section (re-
dacted for personal information); 
‘‘(2) with respect to students employed in work- 
study through the Federal work-study program— 
‘‘(A) the types of jobs such students par-
ticipated in; 
‘‘(B) the average hours worked per week; 
‘‘(C) the average award amount; 
‘‘(D) the average wage rates; 
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‘‘(E) the extent to which students enter 
employment with skills and knowledge gained 
from work-study participation that have pre-
pared them for the job; and 
‘‘(F) the students’ satisfaction with the 
program and primary complaints; 
‘‘(3) the extent to which institutions conduct 
outreach to employers and engage them in discus-
sions on improving academic programs; 
‘‘(4) the extent to which institutions conduct 
outreach to students and make jobs readily avail-
able; 
‘‘(5) the extent to which the work-study employ-
ment aligns with students’ academic programs or ca-
reer goals; 
‘‘(6) the employers’ satisfaction with the pro-
gram and primary complaints; and 
‘‘(7) recommendations for improving the pro-
gram. 
‘‘(d) CONSULTATION.—In consulting with the entities 
described in subsection (a) to create the electronic surveys 
required under such subsection, the Secretary shall engage 
with— 
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‘‘(1) a representative sample of institutions of 
higher education participating in the Federal work- 
study program; 
‘‘(2) a representative sample of employers par-
ticipating in the Federal work-study program; and 
‘‘(3) a representative sample of students par-
ticipating in the Federal work-study program. 
‘‘(e) 
TECHNICAL
ASSISTANCE.—The 
Secretary 
shall— 
‘‘(1) provide technical assistance to institutions 
participating under the Federal work-study program 
under this part to— 
‘‘(A) comply with the amendments made 
by subtitle O of the Aim Higher Act and the 
regulations issued pursuant to this subtitle; 
‘‘(B) administer the surveys described in 
subsection (a) to students and employers par-
ticipating in the Federal work-study program; 
‘‘(C) ensure that Federal work-study posi-
tions align with students’ educational goals or 
career goals to the maximum extent practicable; 
and 
‘‘(D) satisfy the requirements under sec-
tion 443(b)(7); and 
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‘‘(2) issue guidance and provide technical as-
sistance to institutions to support improved partner-
ships and coordination among financial aid, career 
services, and academic advisors to administer the 
Federal work-study program. 
‘‘(f) RESPONSE RATE.—In the case of an institution 
participating under the Federal work-study program 
under this part with a response rate for students and em-
ployers with respect to the surveys described in subsection 
(a)(1) of less than 75 percent, the Secretary shall require 
such institution— 
‘‘(1) to submit to the Secretary an improvement 
plan to increase such response rate; and 
‘‘(2) if the response rate has not improved 2 
years after the date on which an improvement plan 
was submitted under paragraph (1), submit to the 
Secretary a revised improvement plan. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated $2,000,000 to carry out 
subsection (a).’’. 
SEC. 4059. STUDY AND REPORT. 
(a) STUDY.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall conduct a study on best practices 
for assisting students participating in the Federal work- 
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study program under part C of title IV of the Higher Edu-
cation Act (42 U.S.C. 1087–51 et seq.) with— 
(1) connecting to off-campus employers; 
(2) procuring work-based learning opportunities 
through such program; 
(3) procuring employment that aligns with stu-
dents’ educational goals or career goals; 
(4) locating employment through job location 
and development programs; 
(5) procuring employment in high-demand occu-
pations; 
(6) balancing employment with academic pro-
grams to improve graduation and completion rates; 
and 
(7) with respect to students with exceptional 
need (as defined in section 413C(c)(2) of the Higher 
Education Act of 1965 (20 U.S.C. 1070b– 
2(c)(2)))— 
(A) locating and coordinating work-study 
employment during qualified periods of non-
enrollment; 
(B) increasing participation of such stu-
dents in such work-study program; and 
(C) limiting the need for additional em-
ployment outside the work-study program. 
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(b) REPORT.—Not later than one year after the date 
on which the study required under subsection (a) is com-
pleted, the Comptroller General of the United States shall 
submit to Congress a report summarizing the findings of 
such study. 
(c) PUBLISH REPORT.—The Comptroller General of 
the United States shall make the report required under 
subsection (b) available to the public on the website of the 
Government Accountability Office. 
PART D 
SEC. 4061. REFINANCING PROGRAMS. 
(a) PROGRAM AUTHORITY.—Section 451(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 
amended— 
(1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 
and 
(2) by inserting ‘‘; and (3) to make loans under 
section 460A and section 460B’’ after ‘‘section 
459A’’. 
SEC. 4062. AMENDMENTS TO TERMS AND CONDITIONS OF 
LOANS AND REPAYMENT PLANS. 
(a) REPEAL OF ORIGINATION FEES.—Subsection (c) 
of section 455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e(c)) is repealed. 
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(b) RULEMAKING
REGARDING
TERMINATION
OF 
CERTAIN REPAYMENT PLANS.—Before the effective date 
of this title, the Secretary of Education shall carry out 
a plan to end all eligibility for repayment plans other than 
a fixed repayment plan described in section 493E and an 
income-based repayment plan described under section 
493C(f) for loans made under part B or D of title IV of 
the Higher Education Act of 1965, unless the borrower 
is enrolled in another repayment plan before such effective 
date, in accordance with the amendments made by this 
Act. 
(c) REPAYMENT PLANS.—Section 455(d) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is 
amended— 
(1) by redesignating paragraphs (2) through 
(5) as paragraphs (3) through (6), respectively; 
(2) by inserting after paragraph (1), the fol-
lowing: 
‘‘(2) DESIGN AND SELECTION ON AND AFTER 
JULY 1, 2019.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), for the borrower of a loan made on 
or after July 1, 2019, and for other borrowers 
subject to paragraph (7), the Secretary shall 
offer a borrower of a loan made under this part 
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2 plans for repayment of such loan, including 
principal and interest on the loan. The borrower 
shall be entitled to accelerate, without penalty, 
repayment on the borrower’s loans under this 
part. The borrower may choose— 
‘‘(i) a fixed repayment plan described 
in section 493E; or 
‘‘(ii) the income-based repayment plan 
under section 493C(f). 
‘‘(B) SELECTION BY THE SECRETARY.—If 
a borrower of a loan made under this part on 
or after July 1, 2019, does not select a repay-
ment plan described in subparagraph (A), the 
Secretary may provide the borrower with a 
fixed repayment plan described in section 493E. 
‘‘(C) CHANGES
IN
SELECTIONS.—Begin-
ning on July 1, 2019, a borrower of a loan 
made under this part may change the bor-
rower’s selection of a repayment plan in accord-
ance with paragraph (7) and under such terms 
and conditions as may be established by the 
Secretary.’’; 
(3) in paragraph (6)(B), as redesignated, by 
striking ‘‘an income contingent repayment plan.’’ 
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and inserting ‘‘the income-based repayment plan 
under section 493C(f).’’; and 
(4) by adding at the end the following: 
‘‘(7) BORROWERS
OF
LOANS
MADE
BEFORE 
JULY 1, 2019.—A borrower who is in repayment on 
a loan made under part B or part D before July 1, 
2019— 
‘‘(A) may choose to retain the repayment 
plan that the borrower was enrolled in on the 
day before such date; 
‘‘(B) may elect to— 
‘‘(i) enter the income-based repayment 
plan under section 493C(f); or 
‘‘(ii) enter a fixed repayment plan de-
scribed in section 493E; 
‘‘(C) after electing to leave a repayment 
plan other than an income-based repayment 
plan described under this subsection or a fixed 
repayment plan described in section 493E, shall 
not be permitted to re-elect a repayment plan 
that is not an income-based repayment plan 
under this subsection or a fixed repayment plan 
described in section 493E; and 
‘‘(D) shall retain, for purposes of repay-
ment or cancellation of any outstanding balance 
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of principal and interest due on a loan as de-
scribed in section 493C(b)(7) any years of re-
payment under another income-based or income 
contingent repayment plan under this title. 
‘‘(8) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.—In the case of any borrower who 
is at least 60 days delinquent on a covered loan, 
the Secretary may obtain such information as is 
reasonably necessary regarding the income and 
family size of the borrower (and the borrower’s 
spouse, if applicable). 
‘‘(B) BORROWER NOTIFICATION.—With re-
spect to each borrower of a covered loan who is 
at least 60 days delinquent on such loan and 
who has not been subject to the procedures 
under this paragraph for such loan in the pre-
ceding 120 days, the Secretary shall, as soon as 
practicable after such 60-day delinquency, pro-
vide to the borrower the following: 
‘‘(i) Notification that the borrower is 
at least 60 days delinquent on at least 1 
covered loan, and a description of all delin-
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quent covered loans, nondelinquent covered 
loans, and noncovered loans of the bor-
rower. 
‘‘(ii) A brief description of the repay-
ment plans for which the borrower is eligi-
ble and the covered loans and noncovered 
loans of the borrower that may be eligible 
for such plans, based on information avail-
able to the Secretary. 
‘‘(iii) The amount of monthly pay-
ments for the covered and noncovered 
loans under the income-based repayment 
plan under section 493C(f) and the fixed 
repayment plan described in section 493E, 
based on information available to the Sec-
retary, including, if the income information 
of the borrower is available to the Sec-
retary under subparagraph (A)— 
‘‘(I) the amount of the monthly 
payment under the income-based re-
payment plan under section 493C(f) 
and the fixed repayment plan de-
scribed in section 493E for which the 
borrower is eligible for the borrower’s 
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covered and noncovered loans, based 
on such income information; and 
‘‘(II) the income, family size, tax 
filing status, and tax year information 
on which each monthly payment is 
based. 
‘‘(iv) Clear and simple instructions on 
how to select the repayment plans. 
‘‘(v) An explanation that, in the case 
of a borrower for whom adjusted gross in-
come is unavailable— 
‘‘(I) if the borrower selects to 
repay the covered loans of such bor-
rower pursuant to the income-based 
repayment plan under section 493C(f) 
that defines discretionary income in 
such a manner that an individual not 
required under section 6012(a)(1) of 
the Internal Revenue Code of 1986 to 
file a return with respect to income 
taxes imposed by subtitle A of such 
Code may have a calculated monthly 
payment greater than $0, the bor-
rower will be required to provide the 
Secretary with other documentation of 
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income satisfactory to the Secretary, 
which documentation the Secretary 
may use to determine an appropriate 
repayment schedule; and 
‘‘(II) if the borrower selects to 
repay such loans pursuant to an in-
come-driven repayment plan that is 
not described in subclause (I), the 
borrower will not be required to pro-
vide the Secretary with such other 
documentation of income, and the bor-
rower will have a calculated monthly 
payment of $0. 
‘‘(vi) An explanation that the Sec-
retary shall take the actions under sub-
paragraph (C) with respect to such bor-
rower, if— 
‘‘(I) the borrower is 120 days de-
linquent on 1 or more covered loans 
and has not selected a new repayment 
plan for the covered loans of the bor-
rower; and 
‘‘(II) in the case of such a bor-
rower whose repayment plan for the 
covered loans of the borrower is not 
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382 
an income-driven repayment plan de-
scribed in subparagraph (D) or (E) of 
paragraph (1), the monthly payments 
under such repayment plan are higher 
than such monthly payments would be 
under the income-based repayment 
plan under section 493C(f). 
‘‘(vii) Instructions on updating the in-
formation of the borrower obtained under 
subparagraph (A). 
‘‘(C) SECRETARY’S INITIAL SELECTION OF 
A PLAN.—With respect to each borrower de-
scribed in subparagraph (B) who has a repay-
ment plan for the covered loans of the borrower 
that meets the requirements of clause (vi)(II) of 
subparagraph (B) and has not selected a new 
repayment plan for such loans in accordance 
with the notice received under such subpara-
graph, and who is at least 120 days delinquent 
on such a loan, the Secretary shall, as soon as 
practicable— 
‘‘(i) provide the borrower with the in-
come-based repayment plan under section 
493C(f); and 
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‘‘(ii) authorize the borrower to change 
the Secretary’s selection of a plan under 
this clause to the fixed repayment plan de-
scribed in section 493E. 
‘‘(D) OPT-OUT.—A borrower of a covered 
loan shall have the right to opt out of the pro-
cedures under this paragraph. 
‘‘(E) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph. 
‘‘(9) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE RE-
HABILITATING DEFAULTED LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.—In the case of any borrower who 
is rehabilitating a covered loan pursuant to sec-
tion 428F(a), the Secretary may obtain such in-
formation as is reasonably necessary regarding 
the income and family size of the borrower (and 
the borrower’s spouse, if applicable). 
‘‘(B) 
BORROWER
NOTIFICATION.—Not 
later than 30 days after a borrower makes the 
6th payment required for the loan rehabilitation 
described in subparagraph (A), the Secretary 
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shall notify the borrower of the process under 
subparagraph (C) with respect to such loan. 
‘‘(C) SECRETARY’S SELECTION OF PLAN.— 
With respect to each borrower who has made 
the 9th payment required for the loan rehabili-
tation described in subparagraph (A), the Sec-
retary shall, as soon as practicable after such 
payment, provide the borrower with the income- 
based repayment plan under section 493C(f), 
without regard to whether the loan has been so 
rehabilitated. 
‘‘(D) OPT-OUT.—A borrower of a covered 
loan shall have the right to opt out of the pro-
cedures under this paragraph. 
‘‘(E) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph. 
‘‘(10) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LOAN.—The term ‘covered 
loan’ means— 
‘‘(i) a loan made under this part; 
‘‘(ii) a loan purchased under section 
459A; or 
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‘‘(iii) a loan that has been assigned to 
the Secretary under section 428(c)(8) or 
part E. 
‘‘(B) 
NONCOVERED
LOAN.—The 
term 
‘noncovered loan’ means a loan made, insured, 
or guaranteed under this title that is not a cov-
ered loan. 
‘‘(11) 
APPLICATION
OF
PREPAYMENT 
AMOUNTS.— 
‘‘(A) 
REQUIREMENT.—Notwithstanding 
any other provision of this subsection or any 
other provision of law— 
‘‘(i) with respect to loans made to an 
eligible borrower under this part or part B, 
which are held by the same holder and 
which have different applicable rates of in-
terest, the holder of such loans shall, un-
less otherwise requested by the borrower in 
writing, apply the borrower’s prepayment 
amount (within the meaning of section 
682.209(b) of title 34, Code of Federal 
Regulations, or a successor regulation) for 
one or more of such loans, first toward the 
outstanding balance of principal due on the 
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386 
loan with the highest applicable rate of in-
terest among such loans; and 
‘‘(ii) except as provided in clause (i), 
with respect to loans made to an eligible 
borrower under this part or part B, which 
are held by the same holder and which 
have the same applicable rates of interest, 
the holder of such loans shall, unless other-
wise requested by the borrower in writing, 
apply the borrower’s prepayment amount 
(within the meaning of section 682.209(b) 
of title 34, Code of Federal Regulations, or 
a successor regulation) for one or more of 
such loans, first toward the outstanding 
balance of principal due on the loan with 
the highest principal balance among such 
loans. 
‘‘(B) ELIGIBLE BORROWER.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘eligible borrower’ 
means a borrower with no outstanding bal-
ance of fees, including collection costs and 
authorized late charges, due on any loan 
made under this part or part B. 
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387 
‘‘(ii) PREPAYMENT AMOUNTS.—A pre-
payment amount (as described in subpara-
graph (A)) made by a borrower who is not 
an eligible borrower to a holder shall be 
applied first toward the borrower’s out-
standing balance of fees, including collec-
tion costs and authorized late charges, due 
on any loan made under this part or part 
B held by such holder.’’. 
(d) APPLICATION.—The amendments made by sub-
section (c)(5) shall— 
(1) take effect as soon as the Secretary of Edu-
cation determines practicable after the Secretary fi-
nalizes the procedures under section 4114, but not 
later than 2 years after the date of enactment of 
this Act; and 
(2) apply to all borrowers of covered loans (as 
defined in section 455(d)(10) of the Higher Edu-
cation Act of 1965, as added by subsection (c)(5)). 
(e) AUTOMATIC RECERTIFICATION OF INCOME FOR 
INCOME-DRIVEN REPAYMENT PLANS.—Section 455(e) of 
the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) 
is amended— 
(1) in paragraph (3)— 
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388 
(A) by striking ‘‘does not reasonably re-
flect the borrower’s current income’’ and insert-
ing ‘‘whose income has decreased relative to the 
adjusted gross income available to the Sec-
retary’’; and 
(B) by inserting ‘‘, consistent with the pro-
cedures 
established 
under 
paragraph 
(8)(B)(iv)’’ before the period at the end; and 
(2) by adding at the end the following: 
‘‘(8) AUTOMATIC RECERTIFICATION.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered loan’ has the meaning given the 
term in subsection (d)(10). 
‘‘(B) IN GENERAL.—Beginning as soon as 
the Secretary determines practicable after the 
Secretary finalizes the procedures under section 
4114 of the Aim Higher Act, but not later than 
2 years after the date of enactment of such Act, 
the Secretary shall establish and implement, 
with respect to any borrower described in sub-
paragraph (C), procedures to— 
‘‘(i) obtain (for each year of repay-
ment and without further action by the 
borrower) such information as is reason-
ably necessary regarding the income of 
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389 
such borrower (and the borrower’s spouse, 
if applicable), for the purpose of deter-
mining the repayment obligation of the 
borrower for such year, including informa-
tion with respect to the borrower’s family 
size in accordance with the procedures 
under section 4114 of the Aim Higher Act, 
subject to clause (ii); 
‘‘(ii) allow the borrower, at any time, 
to opt out of clause (i) and prevent the 
Secretary 
from 
obtaining 
information 
under such clause without further action 
by the borrower; 
‘‘(iii) provide the borrower with an op-
portunity to update the information ob-
tained under clause (i) before the deter-
mination of the annual repayment obliga-
tion of the borrower; and 
‘‘(iv) in the case of a borrower for 
whom adjusted gross income is unavail-
able— 
‘‘(I) if the borrower has selected 
to repay the covered loans of such 
borrower pursuant to an income con-
tingent repayment plan that defines 
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discretionary income in such a man-
ner that an individual not required 
under section 6012(a)(1) of the Inter-
nal Revenue Code of 1986 to file a re-
turn with respect to income taxes im-
posed by subtitle A of such Code may 
have a calculated monthly payment 
greater than $0, the borrower will be 
required to provide the Secretary with 
other documentation of income satis-
factory to the Secretary, which docu-
mentation the Secretary may use to 
determine an appropriate repayment 
schedule; or 
‘‘(II) if the borrower has selected 
to repay such loans pursuant to an in-
come contingent repayment that is not 
described in subclause (I), the bor-
rower will not be required to provide 
the Secretary with such other docu-
mentation of income, and the bor-
rower will have a calculated monthly 
payment of $0. 
‘‘(C) APPLICABILITY.—Subparagraph (B) 
shall apply to each borrower of a covered loan 
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391 
who, on or after the date on which the Sec-
retary establishes procedures under such sub-
paragraph— 
‘‘(i) selects, or for whom the Secretary 
selects under paragraph (8)(C) or (9)(C) 
of subsection (d), or section 428(m)(1), an 
income contingent repayment plan; or 
‘‘(ii) recertifies income and family size 
under such plan. 
‘‘(D) OTHER REQUIREMENTS.—The proce-
dures established by the Secretary under this 
paragraph shall be consistent with the require-
ments of paragraphs (1) through (7), except as 
otherwise provided in this paragraph.’’. 
(f) SEPARATING JOINT CONSOLIDATION LOANS.— 
Section 455(g) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(g)) is amended— 
(1) by striking ‘‘A borrower’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—A borrower’’; and 
(2) by adding at the end the following: 
‘‘(2) 
SEPARATING
JOINT
CONSOLIDATION 
LOANS.— 
‘‘(A) IN GENERAL.—A married couple, or 
2 individuals who were previously a married 
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392 
couple, and who received a joint consolidation 
loan as such married couple under subpara-
graph (C) of section 428C(a)(3) (as such sub-
paragraph was in effect on or before June 30, 
2006), may apply to the Secretary for each in-
dividual borrower in the married couple (or pre-
viously married couple) to receive a separate 
Federal Direct Consolidation Loan under this 
part— 
‘‘(i) that shall— 
‘‘(I) unless the Secretary receives 
notice of an agreement described in 
subclause (II)(aa), be equal to the 
sum of— 
‘‘(aa) the unpaid principal 
and accrued unpaid interest of 
the percentage of the joint con-
solidation loan that, as of the day 
before such joint consolidation 
loan was made, was attributable 
to the loans of the individual bor-
rower for whom such separate 
consolidation loan is being made; 
and 
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‘‘(bb) any other loans de-
scribed in section 428C(a)(4) 
that such individual borrower se-
lects for consolidation under this 
part; or 
‘‘(II) be equal to the sum of— 
‘‘(aa) the unpaid principal 
and accrued unpaid interest of 
the percentage of the joint con-
solidation loan that, as of the 
date of application under this 
paragraph, the married couple 
(or previously married couple) 
agrees shall be considered attrib-
utable to the loans of the indi-
vidual borrower for whom such 
separate consolidation loan is 
being made; and 
‘‘(bb) any other loans de-
scribed in section 428C(a)(4) 
that such individual borrower se-
lects for consolidation under this 
part; 
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‘‘(ii) the proceeds of which shall be 
paid by the Secretary to the holder or 
holders— 
‘‘(I) of the joint consolidation 
loan for the purpose of discharging 
the liability on the percentage of such 
joint consolidation loan described in 
subclause (I)(aa) or (II)(aa) of clause 
(i); and 
‘‘(II) of the loans selected for 
consolidation under subclause (I)(bb) 
or subclause (II)(bb) of clause (i) for 
the purpose of discharging the liability 
on such loans; 
‘‘(iii) except as otherwise provided in 
this paragraph, that has the same terms 
and conditions, and rate of interest as the 
joint consolidation loan; 
‘‘(iv) for which any payment made 
under section 455(m)(1)(A) on the joint 
consolidation loan during a period in which 
the individual borrower for whom such sep-
arate consolidation loan is being made was 
employed in a public service job described 
in section 455(m)(1)(B) shall be treated as 
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395 
if such payment were made on such sepa-
rate consolidation loan; and 
‘‘(v) for which any payment made 
under an income contingent repayment 
plan or an income-based repayment plan 
described in subparagraph (D) or (E) of 
section 455(d)(1), respectively, on the joint 
consolidation loan shall be treated as if 
such payment were made on such separate 
consolidation loan. 
‘‘(B) APPLICATION FOR SEPARATE DIRECT 
CONSOLIDATION LOAN.— 
‘‘(i) JOINT APPLICATION.—Except as 
provided in clause (ii), to receive separate 
consolidation loans under subparagraph 
(A), both individual borrowers in a married 
couple (or previously married couple) shall 
jointly apply under subparagraph (A). 
‘‘(ii) SEPARATE
APPLICATION.—An 
individual borrower in a married couple (or 
previously married couple) may apply for a 
separate consolidation loan under subpara-
graph (A) separately and without regard to 
whether or when the other individual bor-
rower in the married couple (or previously 
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396 
married couple) applies under subpara-
graph (A), in a case in which— 
‘‘(I) the individual borrower has 
experienced from the other individual 
borrower— 
‘‘(aa) domestic violence (as 
defined in section 40002(a) of 
the Violence Against Women Act 
of 1994 (34 U.S.C. 12291(a))); 
or 
‘‘(bb) economic abuse (in-
cluding behaviors that control 
such borrower’s ability to ac-
quire, use, and maintain access 
to money, credit, or the joint fi-
nancial obligations of both bor-
rowers); 
‘‘(II) the individual borrower cer-
tifies, on a form approved by the Sec-
retary, that such borrower is unable 
to reasonably reach or access the loan 
information of the other individual 
borrower; or 
‘‘(III) the Secretary determines 
that authorizing each individual bor-
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397 
rower to apply separately under sub-
paragraph (A) would be in the best 
fiscal interests of the Federal Govern-
ment. 
‘‘(C) BORROWER
ELIGIBILITY.—Notwith-
standing section 428C(a)(3)(A), the Secretary 
shall award a consolidation loan under this part 
to each borrower who— 
‘‘(i) applies for such loan under sub-
paragraph (A); and 
‘‘(ii) meets the requirements of sub-
paragraphs (A) and (B).’’. 
SEC. 4063. AMENDMENTS TO TERMS AND CONDITIONS OF 
BORROWER DEFENSES. 
Section 455(h) of the Higher Education Act of 1965 
is amended to read as follows: 
‘‘(h) BORROWER DEFENSES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of State or Federal law, a defense to re-
payment of a loan under this title includes— 
‘‘(A) a substantial misrepresentation under 
section 487(c)(3); 
‘‘(B) an act or omission that would give 
rise to a cause of action against the school 
under applicable State law; or 
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398 
‘‘(C) such further acts or omissions that 
the Secretary determines appropriate. 
‘‘(2) PROCEDURES.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
with respect to a borrower defense under this 
subsection— 
‘‘(i) determine the entitlement of a 
borrower to relief based on all evidence 
available to the Department; and 
‘‘(ii) provide an expeditious and fair 
process to consider applications provided 
by individuals, groups, and representatives 
on behalf of groups. 
‘‘(B) INDEPENDENT DETERMINATION.—A 
determination under subparagraph (A)(i) shall 
be independent of any action that the Depart-
ment may take to recoup from the school re-
lated to the borrower defense. 
‘‘(C) CANCELLATION
OF
DEBT.—If the 
Secretary 
determines 
under 
subparagraph 
(A)(i) that a borrower is entitled to relief, the 
Secretary shall cancel all outstanding debt, and 
return any payments made on the loans of such 
borrower. 
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399 
‘‘(3) REGULATIONS.—The Secretary shall speci-
fy in regulations which acts or omissions of an insti-
tution of higher education a borrower may assert as 
a defense to repayment of a loan made under this 
part, except that in no event may a borrower recover 
from the Secretary, in any action arising from or re-
lating to a loan made under this part, an amount in 
excess of the amount such borrower has repaid on 
such loan.’’. 
SEC. 4064. AMENDMENTS TO TERMS AND CONDITIONS OF 
PUBLIC SERVICE LOAN FORGIVENESS. 
Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(m)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) SPECIAL
RULES
FOR
SECTION
460A 
LOANS.— 
‘‘(A) 
REFINANCED
FEDERAL
DIRECT 
LOANS.—Notwithstanding paragraph (1), in de-
termining the number of monthly payments 
that meet the requirements of such paragraph 
for an eligible Federal Direct Loan refinanced 
under section 460A that was originally a loan 
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400 
under this part, the Secretary shall include all 
monthly payments made on the original loan 
that meet the requirements of such paragraph. 
‘‘(B) REFINANCED FFEL LOANS.—In the 
case of an eligible Federal Direct Loan refi-
nanced under section 460A that was originally 
a loan under part B, only monthly payments 
made after the date on which the loan was refi-
nanced may be included for purposes of para-
graph (1).’’; 
(3) in paragraph (4)(A) (as redesignated by 
paragraph (1))— 
(A) by inserting ‘‘(including any Federal 
Direct Stafford Loan, Federal Direct PLUS 
Loan, Federal Direct Unsubsidized Stafford 
Loan, or Federal Direct Consolidation Loan re-
financed under section 460A)’’ before the pe-
riod at the end; and 
(B) by striking ‘‘The term’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—The term’’; and 
(C) by adding at the end the following: 
‘‘(ii) TREATMENT OF CERTAIN CON-
SOLIDATION LOAN PAYMENTS.—In a case 
in which a borrower makes a monthly pay-
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401 
ment under paragraph (1)(A) on a Federal 
Direct Consolidation Loan that was used 
to repay an eligible Federal Direct Loan 
described in clause (i) for which at least 
one monthly payment has been made under 
paragraph (1)(A) prior to the consolida-
tion, the monthly payment on such Federal 
Direct Consolidation Loan shall be treated 
as a monthly payment on such eligible 
Federal Direct Loan.’’; and 
(4) by amending subparagraph (B) of para-
graph (4) (as redesignated by paragraph (1)) to 
read as follows: 
‘‘(B) PUBLIC
SERVICE
JOB.—The term 
‘public service job’ means— 
‘‘(i) a full-time job in emergency man-
agement, 
government 
(excluding 
time 
served as a member of Congress), military 
service, public safety, law enforcement, 
public health (including nurses, nurse 
practitioners, nurses in a clinical setting, 
and full-time professionals engaged in 
health care practitioner occupations and 
health care support occupations, as such 
terms are defined by the Bureau of Labor 
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402 
Statistics), public education, social work in 
a public child or family service agency, 
public interest law services (including pros-
ecution or public defense or legal advocacy 
on behalf of low-income communities at a 
nonprofit organization), early childhood 
education (including licensed or regulated 
childcare, Head Start, and State funded 
prekindergarten), public service for individ-
uals with disabilities, public service for the 
elderly, public library sciences, school- 
based library sciences and other school- 
based services, or at an organization that 
is described in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and exempt 
from taxation under section 501(a) of such 
Code; 
‘‘(ii) teaching as a full-time faculty 
member at a Tribal College or University 
as defined in section 316(b) and other fac-
ulty teaching in high-needs subject areas 
or areas of shortage (including nurse fac-
ulty, foreign language faculty, and part- 
time faculty at community colleges), as de-
termined by the Secretary; 
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403 
‘‘(iii) a full-time job as an employee or 
manager of a farm or ranch that, with re-
spect to a fiscal year, has earnings of gross 
revenue during such year from the sale of 
agricultural products equal to or greater 
than— 
‘‘(I) 
in 
the 
case 
of 
2017, 
$35,000; or 
‘‘(II) in the case of any suc-
ceeding year, the amount applicable 
under this subparagraph for the pre-
vious year, increased by the estimated 
percentage change in the Consumer 
Price Index for the most recent year 
preceding such year; 
‘‘(iv) a full-time job with a veterans or 
military service organization as described 
in paragraph (19) or (23) of section 501(c) 
of the Internal Revenue Code; or 
‘‘(v) any health care practitioner who, 
as a result of State law, cannot be directly 
employed by a hospital or other health care 
facility for the provision of professional 
medical services, but who works in a public 
service job at that hospital or other health 
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404 
care facility by virtue of being granted pro-
fessional privileges or pursuant to a writ-
ten arrangement for the provision of pro-
fessional services.’’. 
SEC. 4065. FEDERAL DIRECT PERKINS LOANS TERMS AND 
CONDITIONS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by inserting 
after section 455 the following new section: 
‘‘SEC. 455A. FEDERAL DIRECT PERKINS LOANS. 
‘‘(a) DESIGNATION OF LOANS.—Loans made to bor-
rowers under this section shall be known as ‘Federal Di-
rect Perkins Loans’. 
‘‘(b) IN GENERAL.—It is the purpose of this section 
to authorize loans to be awarded by institutions of higher 
education through agreements established under section 
463(f). Unless otherwise specified in this section, all terms 
and conditions and other requirements applicable to Fed-
eral Direct Unsubsidized Stafford loans established under 
section 455(a)(2)(D) shall apply to loans made pursuant 
to this section. 
‘‘(c) ELIGIBLE BORROWERS.—Any student meeting 
the requirements for student eligibility under section 
464(b) (including graduate and professional students as 
defined in regulations promulgated by the Secretary) shall 
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405 
be eligible to borrow a Federal Direct Perkins Loan, pro-
vided the student attends an eligible institution with an 
agreement with the Secretary under section 463(f), and 
the institution uses its authority under that agreement to 
award the student a loan. 
‘‘(d) LOAN LIMITS.—The annual and aggregate lim-
its for loans under this section shall be the same as those 
established under section 464, and aggregate limits shall 
include loans made by institutions under agreements 
under section 463(a). 
‘‘(e) APPLICABLE
RATES
OF
INTEREST.—Loans 
made pursuant to this section shall bear interest, on the 
unpaid balance of the loan, at the rate of 5 percent per 
year.’’. 
SEC. 
4066. 
REQUIRING 
A 
COMMON 
MANUAL 
FOR 
SERVICERS. 
Section 456 of the Higher Education Act of 1965 (20 
U.S.C. 1092) is amended by adding at the end the fol-
lowing: 
‘‘(c) COMMON MANUAL.—The Secretary shall create 
a manual of common procedures and policies for entities 
with which the Secretary enters into contracts for origina-
tion, servicing, and collection of Federal student loans as 
described in subsection (b), to standardize procedures to 
ensure borrowers are well-served.’’. 
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406 
SEC. 4067. REFINANCING FFEL AND FEDERAL DIRECT 
LOANS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 
LOANS. 
‘‘(a) IN GENERAL.—Beginning not later than 180 
days after the date of enactment of the Aim Higher Act, 
the Secretary shall establish a program under which the 
Secretary, upon the receipt of an application from a quali-
fied borrower, makes a loan under this part, in accordance 
with the provisions of this section, in order to permit the 
borrower to obtain the interest rate provided under sub-
section (c). 
‘‘(b) REFINANCING DIRECT LOANS.— 
‘‘(1) FEDERAL DIRECT LOANS.—Upon applica-
tion of a qualified borrower, the Secretary shall 
repay a Federal Direct Stafford Loan, a Federal Di-
rect Unsubsidized Stafford Loan, a Federal Direct 
PLUS Loan, or a Federal Direct Consolidation 
Loan of the qualified borrower, for which the first 
disbursement was made, or the application for the 
consolidation loan was received, before July 1, 2019, 
with the proceeds of a refinanced Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Staf-
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ford Loan, a Federal Direct PLUS Loan, or a Fed-
eral Direct Consolidation Loan, respectively, issued 
to the borrower in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
late charges of the original loan. 
‘‘(2) REFINANCING FFEL PROGRAM LOANS AS 
REFINANCED FEDERAL DIRECT LOANS.—Upon ap-
plication of a qualified borrower for any loan that 
was made, insured, or guaranteed under part B and 
for which the first disbursement was made, or the 
application for the consolidation loan was received, 
before July 1, 2010, the Secretary shall make a loan 
under this part, in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
late charges of the original loan to the borrower in 
accordance with the following: 
‘‘(A) The Secretary shall pay the proceeds 
of such loan to the eligible lender of the loan 
made, insured, or guaranteed under part B, in 
order to discharge the borrower from any re-
maining obligation to the lender with respect to 
the original loan. 
‘‘(B) A loan made under this section that 
was originally— 
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‘‘(i) a loan originally made, insured, 
or guaranteed under section 428 shall be a 
Federal Direct Stafford Loan; 
‘‘(ii) a loan originally made, insured, 
or guaranteed under section 428B shall be 
a Federal Direct PLUS Loan; 
‘‘(iii) a loan originally made, insured, 
or guaranteed under section 428H shall be 
a Federal Direct Unsubsidized Stafford 
Loan; and 
‘‘(iv) a loan originally made, insured, 
or guaranteed under section 428C shall be 
a Federal Direct Consolidation Loan. 
‘‘(C) The interest rate for each loan made 
by the Secretary under this paragraph shall be 
the rate provided under subsection (c). 
‘‘(c) INTEREST RATES.— 
‘‘(1) IN GENERAL.—The interest rate for the 
refinanced Federal Direct Stafford Loans, Federal 
Direct Unsubsidized Stafford Loans, Federal Direct 
PLUS Loans, and Federal Direct Consolidation 
Loans, shall be a rate equal to— 
‘‘(A) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford loan, or a Federal Direct 
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Unsubsidized Stafford Loan, that was issued to 
an undergraduate student, a rate equal to the 
rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
month period beginning on July 1, 2017, and 
ending on June 30, 2018; 
‘‘(B) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford Loan, or a Federal Direct 
Unsubsidized Stafford Loan, that was issued to 
a graduate or professional student, a rate equal 
to the rate for Federal Direct Unsubsidized 
Stafford Loans issued to graduate or profes-
sional students for the 12-month period begin-
ning on July 1, 2017, and ending on June 30, 
2018; 
‘‘(C) in any case where the original loan 
was a loan under section 428B or a Federal Di-
rect PLUS Loan, a rate equal to the rate for 
Federal Direct PLUS Loans for the 12-month 
period beginning on July 1, 2017, and ending 
on June 30, 2018; and 
‘‘(D) in any case where the original loan 
was a loan under section 428C or a Federal Di-
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rect Consolidation Loan, a rate calculated in ac-
cordance with paragraph (2). 
‘‘(2) INTEREST
RATES
FOR
CONSOLIDATION 
LOANS.— 
‘‘(A) 
METHOD
OF
CALCULATION.—In 
order to determine the interest rate for any re-
financed Federal Direct Consolidation Loan 
under paragraph (1)(D), the Secretary shall— 
‘‘(i) determine each of the component 
loans that were originally consolidated in 
the loan under section 428C or the Federal 
Direct Consolidation Loan, and calculate 
the proportion of the unpaid principal bal-
ance of the loan under section 428C or the 
Federal Direct Consolidation Loan that 
each component loan represents; 
‘‘(ii) use the proportions determined 
in accordance with clause (i) and the inter-
est rate applicable for each component 
loan, as determined under subparagraph 
(B), to calculate the weighted average of 
the interest rates on the loans consolidated 
into the loan under section 428C or the 
Federal Direct Consolidation Loan; and 
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‘‘(ii) The interest rate for any loan 
under section 428 or 428H, Federal Direct 
Stafford Loan, or Federal Direct Unsub-
sidized Stafford Loan issued to a graduate 
or professional student shall be a rate 
equal to the lesser of— 
‘‘(I) the rate for Federal Direct 
Unsubsidized Stafford Loans issued 
to graduate or professional students 
for the 12-month period beginning on 
July 1, 2017, and ending on June 30, 
2018; or 
‘‘(II) the original interest rate of 
the component loan. 
‘‘(iii) The interest rate for any loan 
under section 428B or Federal Direct 
PLUS Loan shall be a rate equal to the 
lesser of— 
‘‘(I) the rate for Federal Direct 
PLUS Loans for the 12-month period 
beginning on July 1, 2017, and end-
ing on June 30, 2018; or 
‘‘(II) the original interest rate of 
the component loan. 
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‘‘(iv) The interest rate for any compo-
nent loan that is a loan under section 
428C or a Federal Direct Consolidation 
Loan shall be the weighted average of the 
interest rates that would apply under this 
subparagraph for each loan comprising the 
component consolidation loan. 
‘‘(v) The interest rate for any eligible 
loan that is a component of a loan made 
under section 428C or a Federal Direct 
Consolidation Loan and is not described in 
clauses (i) through (iv) shall be the inter-
est rate on the original component loan. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under paragraph (1) for a refi-
nanced loan under this section shall be fixed for the 
period of the loan. 
‘‘(d) TERMS AND CONDITIONS OF LOANS.— 
‘‘(1) IN GENERAL.—A loan that is refinanced 
under this section shall have the same terms and 
conditions as the original loan, except as otherwise 
provided in this section. 
‘‘(2) NO
AUTOMATIC
EXTENSION
OF
REPAY-
MENT PERIOD.—Refinancing a loan under this sec-
tion shall not result in the extension of the duration 
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414 
of the repayment period of the loan, and the bor-
rower shall retain the same repayment term that 
was in effect on the original loan. Nothing in this 
paragraph shall be construed to prevent a borrower 
from electing a different repayment plan at any time 
in accordance with section 455(d)(4). 
‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified borrower’ means a bor-
rower— 
‘‘(A) of a loan under this part or part B 
for which the first disbursement was made, or 
the application for a consolidation loan was re-
ceived, before July 1, 2018; and 
‘‘(B) who meets the eligibility requirements 
based on income or debt-to-income ratio estab-
lished by the Secretary. 
‘‘(2) INCOME REQUIREMENTS.—Not later than 
180 days after the date of enactment of the Aim 
Higher Act, the Secretary shall establish eligibility 
requirements based on income or debt-to-income 
ratio that take into consideration providing access to 
refinancing under this section for borrowers with the 
greatest financial need. 
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415 
‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 
in coordination with the Director of the Bureau of Con-
sumer Financial Protection, shall undertake a campaign 
to alert borrowers of loans that are eligible for refinancing 
under this section that the borrowers are eligible to apply 
for such refinancing. The campaign shall include the fol-
lowing activities: 
‘‘(1) Developing consumer information mate-
rials about the availability of Federal student loan 
refinancing. 
‘‘(2) Requiring servicers of loans under this 
part or part B to provide such consumer information 
to borrowers in a manner determined appropriate by 
the Secretary, in consultation with the Director of 
the Bureau of Consumer Financial Protection.’’. 
SEC. 4068. REFINANCING PRIVATE STUDENT LOANS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 
The term ‘eligible private education loan’ means a 
private education loan, as defined in section 140(a) 
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416 
of the Truth in Lending Act (15 U.S.C. 1650(a)), 
that— 
‘‘(A) was disbursed to the borrower before 
July 1, 2019; and 
‘‘(B) was for the borrower’s own postsec-
ondary educational expenses for an eligible pro-
gram at an institution of higher education par-
ticipating in the loan program under this part, 
as of the date that the loan was disbursed. 
‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOAN.—The term ‘Federal Direct Refinanced Pri-
vate Loan’ means a loan issued under subsection 
(b)(1). 
‘‘(3) PRIVATE
EDUCATIONAL
LENDER.—The 
term ‘private educational lender’ has the meaning 
given the term in section 140(a) of the Truth in 
Lending Act (15 U.S.C. 1650(a)). 
‘‘(4) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means an individual who— 
‘‘(A) has an eligible private education loan; 
‘‘(B) has been current on payments on the 
eligible private education loan for the 6 months 
prior to the date of the qualified borrower’s ap-
plication for refinancing under this section, and 
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is in good standing on the loan at the time of 
such application; 
‘‘(C) is not in default on the eligible pri-
vate education loan or on any loan made, in-
sured, or guaranteed under this part or part B 
or E; and 
‘‘(D) meets the eligibility requirements de-
scribed in subsection (b)(2). 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Treasury, shall carry 
out a program under which the Secretary, upon ap-
plication by a qualified borrower who has an eligible 
private education loan, shall issue such borrower a 
loan under this part in accordance with the fol-
lowing: 
‘‘(A) The loan issued under this program 
shall be in an amount equal to the sum of the 
unpaid principal, accrued unpaid interest, and 
late charges of the private education loan. 
‘‘(B) The Secretary shall pay the proceeds 
of the loan issued under this program to the 
private educational lender of the private edu-
cation loan, in order to discharge the qualified 
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borrower from any remaining obligation to the 
lender with respect to the original loan. 
‘‘(C) The Secretary shall require that the 
qualified borrower undergo loan counseling that 
provides all of the information and counseling 
required under clause (i) and clauses (iv) 
through (xiv) of section 485(b)(1)(A) (as 
amended by the Aim Higher Act) before the 
loan is refinanced in accordance with this sec-
tion, and before the proceeds of such loan are 
paid to the private educational lender. 
‘‘(D) The Secretary shall issue the loan as 
a Federal Direct Refinanced Private Loan, 
which shall have the same terms, conditions, 
and benefits as a Federal Direct Unsubsidized 
Stafford Loan, except as otherwise provided in 
this section. 
‘‘(2) BORROWER ELIGIBILITY.—Not later than 
180 days after the date of enactment of the Aim 
Higher Act, the Secretary, in consultation with the 
Secretary of the Treasury and the Director of the 
Bureau of Consumer Financial Protection, shall es-
tablish eligibility requirements— 
‘‘(A) based on income or debt-to-income 
ratio that take into consideration providing ac-
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cess to refinancing under this section for bor-
rowers with the greatest financial need; 
‘‘(B) to ensure eligibility only for bor-
rowers in good standing; 
‘‘(C) to minimize inequities between Fed-
eral Direct Refinanced Private Loans and other 
Federal student loans; 
‘‘(D) to preclude windfall profits for pri-
vate educational lenders; and 
‘‘(E) to ensure full access to the program 
authorized in this subsection for borrowers with 
private loans who otherwise meet the criteria 
established in accordance with subparagraphs 
(A) and (B). 
‘‘(c) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—The interest rate for a 
Federal Direct Refinanced Private Loan is— 
‘‘(A) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for undergraduate post-
secondary educational expenses, a rate equal to 
the rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
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month period beginning on July 1, 2017, and 
ending on June 30, 2018; and 
‘‘(B) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for graduate or profes-
sional degree postsecondary educational ex-
penses, a rate equal to the rate for Federal Di-
rect Unsubsidized Stafford Loans issued to 
graduate or professional students for the 12- 
month period beginning on July 1, 2017, and 
ending on June 30, 2018. 
‘‘(2) COMBINED UNDERGRADUATE AND GRAD-
UATE
STUDY
LOANS.—If a Federal Direct Refi-
nanced Private Loan is for a private education loan 
originally issued for both undergraduate and grad-
uate or professional postsecondary educational ex-
penses, the interest rate shall be a rate equal to the 
rate for Federal Direct PLUS Loans for the 12- 
month period beginning on July 1, 2017, and ending 
on June 30, 2018. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under this subsection for a Fed-
eral Direct Refinanced Private Loan shall be fixed 
for the period of the loan. 
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‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 
amount of a Federal Direct Refinanced Private Loan, or 
a Federal Direct Consolidated Loan to the extent such 
loan was used to repay a Federal Direct Refinanced Pri-
vate Loan, shall not be included in calculating a bor-
rower’s annual or aggregate loan limits under section 428 
or 428H. 
‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE-
PAYMENT.—Notwithstanding 
sections 
428K(a)(2)(A), 
428L(b)(2), 455(m)(4)(A), and 460(b), a Federal Direct 
Refinanced Private Loan, or any Federal Direct Consoli-
dation Loan to the extent such loan was used to repay 
a Federal Direct Refinanced Private Loan, shall not be 
eligible for any loan repayment or loan forgiveness pro-
gram under section 428K, 428L, or 460 or for the repay-
ment plan for public service employees under section 
455(m). 
‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING 
REQUIREMENT.— 
‘‘(1) REPORTING
REQUIRED.—Not later than 
180 days after the date of enactment of the Aim 
Higher Act, the Secretary, in consultation with the 
Secretary of the Treasury and the Director of the 
Bureau of Consumer Financial Protection, shall es-
tablish a requirement that private educational lend-
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ers report the data described in paragraph (2) to the 
Secretary, to Congress, to the Secretary of the 
Treasury, and to the Director of the Bureau of Con-
sumer Financial Protection, in order to allow for an 
assessment of the private education loan market. 
‘‘(2) CONTENTS
OF
REPORTING.—The data 
that private educational lenders shall report in ac-
cordance with paragraph (1) shall include each of 
the following about private education loans (as de-
fined in section 140(a) of the Truth in Lending Act 
(15 U.S.C. 1650(a))): 
‘‘(A) The total amount of private education 
loan debt the lender holds. 
‘‘(B) The total number of private edu-
cation loan borrowers the lender serves. 
‘‘(C) The average interest rate on the out-
standing private education loan debt held by the 
lender. 
‘‘(D) The proportion of private education 
loan borrowers who are in default on a loan 
held by the lender. 
‘‘(E) The proportion of the outstanding 
private education loan volume held by the lend-
er that is in default. 
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‘‘(F) The proportions of outstanding pri-
vate education loan borrowers who are 30, 60, 
and 90 days delinquent. 
‘‘(G) The proportions of outstanding pri-
vate education loan volume that is 30, 60, and 
90 days delinquent. 
‘‘(g) NOTIFICATION
TO
BORROWERS.—The Sec-
retary, in coordination with the Secretary of the Treasury 
and the Director of the Bureau of Consumer Financial 
Protection, shall undertake a campaign to alert borrowers 
about the availability of private student loan refinancing 
under this section.’’. 
PART E 
SEC. 4071. AUTHORIZATION OF APPROPRIATIONS FOR PER-
KINS LOAN. 
Section 461 of the Higher Education Act of 1965 (20 
U.S.C. 1087aa) is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘(1) IN GENERAL.—’’; 
(B) by redesignating subparagraphs (A), 
(B), and (C) as paragraphs (1), (2), and (3), 
respectively; and 
(C) by striking paragraphs (2) and (3); 
and 
(2) by striking subsection (c). 
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scribed in subparagraph (D), such appli-
cant shall submit a FAFSA for such suc-
ceeding award year and any other award 
year for which the applicant seeks financial 
assistance under this title. 
‘‘(B) ADJUSTMENT OF EXPECTED FAMILY 
CONTRIBUTION.—With respect to an applicant 
described in subparagraph (A)(i) who receives 
an adjustment under section 479A to the ex-
pected family contribution of the applicant for 
an award year, for any succeeding award year 
after the award year for which the adjustment 
was made, subclause (II) of such subparagraph 
shall be applied to such applicant by sub-
stituting ‘expected family contribution of the 
applicant as most recently adjusted under sec-
tion 479A for such applicant’ for the ‘expected 
family contribution of the applicant determined 
for the award year for which the applicant sub-
mitted a FAFSA during such period’. 
‘‘(C) RULE
FOR
CERTAIN
STUDENTS.— 
With respect to an applicant who submits a 
FAFSA for award year 2019–2020 and enrolls 
in an institution of higher education for such 
year, subparagraph (A) shall be applied— 
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