409 
‘‘(bb) 
providing 
each 
person 
against whom the allegation is made 
with a meaningful opportunity to 
admit or contest the allegation; 
‘‘(cc) ensuring that all parties to 
the proceeding have access to all ma-
terial evidence not later than one week 
prior to the start of any formal hear-
ing 
or 
similar 
adjudicatory 
pro-
ceeding; 
‘‘(dd) ensuring that the pro-
ceeding is carried out free from con-
flicts of interest by ensuring that 
there is no commingling of adminis-
trative or adjudicative roles; and 
‘‘(ee) ensuring that the investiga-
tion and proceeding shall be con-
ducted by officials who receive annual 
education on issues related to domes-
tic violence, dating violence, sexual as-
sault, and stalking, and on how to 
conduct an investigation and an insti-
tutional disciplinary proceeding that 
protects the safety of victims, ensures 
fairness for both the accuser and the 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00409
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
410 
accused, 
and 
promotes 
account-
ability;’’. 
(3) ESTABLISHMENT
OF
STANDARD
OF
EVI-
DENCE
FOR
INSTITUTIONAL
DISCIPLINARY
PRO-
CEEDINGS.— 
(A) INCLUSION
IN
STATEMENT
OF
POL-
ICY.—Section 
485(f)(8)(B) 
(20 
U.S.C. 
1092(f)(8)(B)) is amended by adding at the 
end the following new clause: 
‘‘(viii) The establishment of a standard of 
evidence that will be used in institutional dis-
ciplinary proceedings involving allegations of 
sexual assault, which may be based on such 
standards and criteria as the institution con-
siders appropriate (including the institution’s 
culture, history, and mission, the values re-
flected in its student code of conduct, and the 
purpose of the institutional disciplinary pro-
ceedings) so long as the standard is not arbi-
trary or capricious and is applied consistently 
throughout all such proceedings.’’. 
(B) CONFORMING AMENDMENTS.—Section 
485(f)(8)(B)(iv) (20 U.S.C. 1092(f)(8)(B)(iv)) 
is amended— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00410
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
411 
(i) by striking ‘‘and’’ at the end of 
subclause (II); 
(ii) by striking the period at the end 
of subclause (III) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing new subclause: 
‘‘(IV) in the case of a proceeding in-
volving an allegation of sexual assault, 
such proceedings shall be conducted in ac-
cordance with the standard of evidence es-
tablished by the institution under clause 
(viii), together with a clear statement de-
scribing such standard of evidence.’’. 
(4) EDUCATION MODULES FOR OFFICIALS CON-
DUCTING INVESTIGATIONS AND INSTITUTIONAL DIS-
CIPLINARY
PROCEEDINGS.—Section 485(f)(8) (20 
U.S.C. 1092(f)(8)) is amended by adding at the end 
the following new subparagraph: 
‘‘(D) In consultation with experts from institu-
tions of higher education, law enforcement agencies, 
advocates for sexual assault victims, experts in due 
process, and other appropriate persons, the Sec-
retary shall create and regularly update modules 
which an institution of higher education may use to 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00411
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
412 
provide the annual education described in subpara-
graph (B)(iv)(I)(ee) for officials conducting inves-
tigations and institutional disciplinary proceedings 
involving allegations described in such subparagraph. 
If the institution uses such modules to provide the 
education described in such subparagraph, the insti-
tution shall be considered to meet any requirement 
under such subparagraph or any other Federal law 
regarding the education provided to officials con-
ducting such investigations and proceedings.’’. 
(g) MODIFICATION
OF CERTAIN REPORTING RE-
QUIREMENTS.— 
(1) FIRE SAFETY.—Section 485(i) (20 U.S.C. 
1092(i)) is amended to read as follows: 
‘‘(i) FIRE SAFETY REPORTS.— 
‘‘(1) ANNUAL REPORT.—Each eligible institu-
tion participating in any program under this title 
that maintains on-campus student housing facilities 
shall, on an annual basis, publish a fire safety re-
port, which shall contain information with respect to 
the campus fire safety practices and standards of 
that institution, statistics on any fire related inci-
dents or injuries, and any preventative measures or 
technologies. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00412
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
413 
‘‘(2) RULES
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to— 
‘‘(A) authorize the Secretary to require 
particular policies, procedures, programs, or 
practices by institutions of higher education 
with respect to fire safety; 
‘‘(B) affect section 444 of the General 
Education Provisions Act (commonly known as 
the ‘Family Education Rights and Privacy Act 
of 1974’) or the regulations issued under sec-
tion 264 of the Health Insurance Portability 
and Accountability Act of 1996 (42 U.S.C. 
1320d-2 note); 
‘‘(C) create a cause of action against any 
institution of higher education or any employee 
of such an institution for any civil liability; or 
‘‘(D) establish any standard of care. 
‘‘(3) EVIDENCE.—Notwithstanding any other 
provision of law, evidence regarding compliance or 
noncompliance with this subsection shall not be ad-
missible as evidence in any proceeding of any court, 
agency, board, or other entity, except with respect to 
an action to enforce this subsection.’’. 
(2) MISSING PERSONS PROCEDURES.— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00413
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
414 
(A) IN GENERAL.—Section 485(j)(1) (20 
U.S.C. 1092(j)(1)) is amended to read as fol-
lows: 
‘‘(1) IN GENERAL.—Each institution of higher 
education that provides on-campus housing and par-
ticipates in any program under this title shall estab-
lish a missing student policy for students who reside 
in on-campus housing that, at a minimum, informs 
each residing student that the institution will notify 
such student’s designated emergency contact and the 
appropriate law enforcement agency not later than 
24 hours after the time that the student is deter-
mined missing, and in the case of a student who is 
under 18 years of age, the institution will notify a 
custodial parent or guardian.’’. 
(B) RULE
OF
CONSTRUCTION.—Section 
485(j)(2) (20 U.S.C. 1092(j)(2)) is amended— 
(i) by striking ‘‘or’’ at the end of sub-
paragraph (A); 
(ii) by striking the period at the end 
of subparagraph (B) and inserting ‘‘; or’’; 
and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00414
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
415 
‘‘(C) to require an institution of higher 
education to maintain separate missing student 
emergency contact information, so long as the 
institution otherwise has an emergency contact 
for students residing on campus.’’. 
(h) ANNUAL
COUNSELING.—Section 485(l) (20 
U.S.C. 1092(l)) is amended to read as follows: 
‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 
‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall ensure that each individual enrolled 
at such institution who receives a Federal Pell 
Grant or a loan made under this title (other 
than a Federal Direct Consolidation Loan or 
Federal ONE Consolidation Loan) receives 
comprehensive information on the terms and 
conditions of such Federal Pell Grant or loan 
and the responsibilities the individual has with 
respect to such Federal Pell Grant or loan. 
Such information shall be provided, for each 
award year for which the individual receives 
such Federal Pell Grant or loan, in a simple 
and understandable manner— 
‘‘(i) during a counseling session con-
ducted in person; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00415
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
416 
‘‘(ii) online, with the individual ac-
knowledging receipt of the information; or 
‘‘(iii) through the use of the online 
counseling tool described in subsection 
(n)(1)(B). 
‘‘(B) USE OF INTERACTIVE PROGRAMS.— 
In the case of institutions not using the online 
counseling 
tool 
described 
in 
subsection 
(n)(1)(B), the Secretary shall require such in-
stitutions to carry out the requirements of sub-
paragraph (A)— 
‘‘(i) through the use of interactive 
programs; 
‘‘(ii) during an annual counseling ses-
sion that is in-person or online that tests 
the individual’s understanding of the terms 
and conditions of the Federal Pell Grant 
or loan awarded to the student; and 
‘‘(iii) using simple and understandable 
language and clear formatting. 
‘‘(2) ALL INDIVIDUALS.—The information to be 
provided under paragraph (1) to each individual re-
ceiving counseling under this subsection shall include 
the following: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00416
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
417 
‘‘(A) An explanation of how the student 
may budget for typical educational expenses 
and a sample budget based on the cost of at-
tendance for the institution. 
‘‘(B) An explanation that an individual has 
a right to annually request a disclosure of infor-
mation collected by a consumer reporting agen-
cy pursuant to section 612(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681j(a)). 
‘‘(C) Based on the most recent data avail-
able from the American Community Survey 
available from the Department of Commerce, 
the estimated average income and percentage of 
employment in the State of domicile of the bor-
rower for persons with— 
‘‘(i) a high school diploma or equiva-
lent; 
‘‘(ii) some post-secondary education 
without completion of a degree or certifi-
cate; 
‘‘(iii) an associate’s degree; 
‘‘(iv) a bachelor’s degree; and 
‘‘(v) a graduate or professional de-
gree. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00417
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
418 
‘‘(D) An introduction to the financial man-
agement resources provided by the Financial 
Literacy and Education Commission. 
‘‘(3) STUDENTS
RECEIVING
FEDERAL
PELL 
GRANTS.—The information to be provided under 
paragraph (1) to each student receiving a Federal 
Pell Grant shall include the following: 
‘‘(A) An explanation of the terms and con-
ditions of the Federal Pell Grant. 
‘‘(B) An explanation of approved edu-
cational expenses for which the student may use 
the Federal Pell Grant. 
‘‘(C) An explanation of why the student 
may have to repay the Federal Pell Grant. 
‘‘(D) An explanation of the maximum 
number of semesters or equivalent for which the 
student may be eligible to receive a Federal Pell 
Grant, and a statement of the amount of time 
remaining for which the student may be eligible 
to receive a Federal Pell Grant. 
‘‘(E) An explanation that if the student 
transfers to another institution not all of the 
student’s courses may be acceptable to apply to-
ward meeting specific degree or program re-
quirements at such institution, but the amount 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00418
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
419 
of time remaining for which a student may be 
eligible to receive a Federal Pell Grant, as pro-
vided under subparagraph (D), will not change. 
‘‘(F) An explanation of how the student 
may seek additional financial assistance from 
the institution’s financial aid office due to a 
change in the student’s financial circumstances, 
and the contact information for such office. 
‘‘(4) BORROWERS
RECEIVING
LOANS
MADE 
THIS TITLE (OTHER THAN FEDERAL DIRECT PLUS 
LOANS
MADE
ON
BEHALF
OF
DEPENDENT
STU-
DENTS OR FEDERAL ONE PARENT LOANS).—The in-
formation to be provided under paragraph (1) to a 
borrower of a loan made under this title (other than 
other than a Federal Direct PLUS Loan made on 
behalf of a dependent student or a Federal ONE 
Parent Loan) shall include the following: 
‘‘(A) To the extent practicable, the effect 
of accepting the loan to be disbursed on the eli-
gibility of the borrower for other forms of stu-
dent financial assistance. 
‘‘(B) An explanation of the use of the mas-
ter promissory note. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00419
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
420 
‘‘(C) An explanation that the borrower is 
not required to accept the full amount of the 
loan offered to the borrower. 
‘‘(D) An explanation that the borrower 
should consider accepting any grant, scholar-
ship, or State or Federal work-study jobs for 
which the borrower is eligible prior to accepting 
Federal student loans. 
‘‘(E) An explanation of treatment of loans 
made under this title and private education 
loans in bankruptcy, and an explanation that if 
a borrower decides to take out a private edu-
cation loan— 
‘‘(i) the borrower has the ability to se-
lect a private educational lender of the bor-
rower’s choice; 
‘‘(ii) the proposed private education 
loan may impact the borrower’s potential 
eligibility for other financial assistance, in-
cluding Federal financial assistance under 
this title; and 
‘‘(iii) the borrower has a right— 
‘‘(I) to accept the terms of the 
private education loan within 30 cal-
endar days following the date on 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00420
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
421 
which the application for such loan is 
approved and the borrower receives 
the required disclosure documents, 
pursuant to section 128(e)(6) of the 
Truth in Lending Act; and 
‘‘(II) to cancel such loan within 3 
business days of the date on which the 
loan is consummated, pursuant to sec-
tion 128(e)(7) of such Act. 
‘‘(F) An explanation of the approved edu-
cational expenses for which the borrower may 
use a loan made under this title. 
‘‘(G) Information on the annual and aggre-
gate loan limits for a loan made under this 
title. 
‘‘(H) Information on interest, including the 
annual percentage rate of such loan, as cal-
culated using the standard 10-year repayment 
term, and how interest accrues and is capital-
ized during periods when the interest is not 
paid by the borrower. 
‘‘(I) The option of the borrower to pay the 
interest while the borrower is in school. 
‘‘(J) The definition of half-time enrollment 
at the institution, during regular terms and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00421
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
422 
summer school, if applicable, and the con-
sequences of not maintaining at least half-time 
enrollment. 
‘‘(K) An explanation of the importance of 
contacting the appropriate offices at the institu-
tion of higher education if the borrower with-
draws prior to completing the borrower’s pro-
gram of study so that the institution can pro-
vide exit counseling, including information re-
garding the borrower’s repayment options and 
loan consolidation. 
‘‘(L) For a first-time borrower or a bor-
rower of a loan under this title who owes no 
principal or interest on such loan— 
‘‘(i) a statement of the anticipated 
balance on the loan for which the borrower 
is receiving counseling under this sub-
section; 
‘‘(ii) based on such anticipated bal-
ance, the anticipated monthly payment 
amount under, at minimum— 
‘‘(I) the standard repayment 
plan; and 
‘‘(II) an income-based repayment 
plan under section 466(d) or 493C, as 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00422
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
423 
determined using available percentile 
data from the Bureau of Labor Sta-
tistics of the starting salary for the 
occupation in which the borrower has 
an interest in or intends to be em-
ployed; and 
‘‘(iii) an estimate of the projected 
monthly payment amount under each re-
payment plan described in clause (ii), 
based on the average cumulative indebted-
ness at graduation for borrowers of loans 
made under this title who are in the same 
program of study as the borrower. 
‘‘(M) For a borrower with an outstanding 
balance of principal or interest due on a loan 
made under this title— 
‘‘(i) a current statement of the 
amount of such outstanding balance and 
interest accrued; 
‘‘(ii) based on such outstanding bal-
ance, the anticipated monthly payment 
amount under the standard repayment 
plan, and the income-based repayment plan 
under section 466(d) or 493C, as deter-
mined using available percentile data from 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00423
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
424 
the Bureau of Labor Statistics of the 
starting salary for the occupation the bor-
rower intends to be employed; and 
‘‘(iii) an estimate of the projected 
monthly payment amount under each re-
payment plan described in clause (ii), 
based on— 
‘‘(I) the outstanding balance de-
scribed in clause (i); 
‘‘(II) the anticipated outstanding 
balance on the loan for which the stu-
dent is receiving counseling under this 
subsection; and 
‘‘(III) a projection for any other 
loans made under this title that the 
borrower is reasonably expected to ac-
cept during the borrower’s program of 
study based on at least the expected 
increase in the cost of attendance of 
such program. 
‘‘(N) The obligation of the borrower to 
repay the full amount of the loan, regardless of 
whether the borrower completes or does not 
complete the program in which the borrower is 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00424
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
425 
enrolled within the regular time for program 
completion. 
‘‘(O) The likely consequences of default on 
the loan, including adverse credit reports, delin-
quent debt collection procedures under Federal 
law, and litigation, and a notice of the institu-
tion’s most recent loan repayment rate (as de-
fined in section 481B) for the educational pro-
gram in which the borrower is enrolled, an ex-
planation of the loan repayment rate, and the 
most recent national average loan repayment 
rate for an educational program. 
‘‘(P) Information on the National Student 
Loan Data System and how the borrower can 
access the borrower’s records. 
‘‘(Q) The contact information for the insti-
tution’s financial aid office or other appropriate 
office at the institution the borrower may con-
tact if the borrower has any questions about the 
borrower’s rights and responsibilities or the 
terms and conditions of the loan. 
‘‘(5) BORROWERS RECEIVING FEDERAL DIRECT 
PLUS LOANS FOR DEPENDENT STUDENTS OR FED-
ERAL ONE PARENT LOANS.—The information to be 
provided under paragraph (1) to a borrower of a 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00425
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
426 
Federal Direct PLUS Loan for a dependent student 
or a Federal ONE Parent Loan shall include the fol-
lowing: 
‘‘(A) The information described in sub-
paragraphs (A) through (C) and (N) through 
(Q) of paragraph (4). 
‘‘(B) An explanation of the treatment of 
the loan and private education loans in bank-
ruptcy. 
‘‘(C) Information on the annual and aggre-
gate loan limits. 
‘‘(D) Information on the annual percent-
age rate of the loan. 
‘‘(E) The option of the borrower to pay the 
interest on the loan while the loan is in 
deferment. 
‘‘(F) For a first-time borrower of a loan or 
a borrower of a loan under this title who owes 
no principal or interest on such loan— 
‘‘(i) a statement of the anticipated 
balance on the loan for which the borrower 
is receiving counseling under this sub-
section; 
‘‘(ii) based on such anticipated bal-
ance, the anticipated monthly payment 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00426
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
427 
amount under the standard repayment 
plan; and 
‘‘(iii) an estimate of the projected 
monthly payment amount under the stand-
ard repayment plan, based on the average 
cumulative indebtedness of other borrowers 
of loans made under this title on behalf of 
dependent students who are in the same 
program of study as the student on whose 
behalf the borrower borrowed the loan. 
‘‘(G) For a borrower with an outstanding 
balance of principal or interest due on such 
loan— 
‘‘(i) a statement of the amount of 
such outstanding balance; 
‘‘(ii) based on such outstanding bal-
ance, the anticipated monthly payment 
amount under the standard repayment 
plan; and 
‘‘(iii) an estimate of the projected 
monthly payment amount under the stand-
ard repayment plan, based on— 
‘‘(I) the outstanding balance de-
scribed in clause (i); 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00427
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
428 
‘‘(II) the anticipated outstanding 
balance on the loan for which the bor-
rower is receiving counseling under 
this subsection; and 
‘‘(III) a projection for any other 
Federal Direct PLUS Loan made on 
behalf of the dependent student or 
Federal ONE Parent Loan that the 
borrower is reasonably expected to ac-
cept during the program of study of 
such student based on at least the ex-
pected increase in the cost of attend-
ance of such program. 
‘‘(H) Debt management strategies that are 
designed to facilitate the repayment of such in-
debtedness. 
‘‘(I) An explanation that the borrower has 
the options to prepay each loan, pay each loan 
on a shorter schedule, and change repayment 
plans. 
‘‘(J) For each Federal Direct PLUS Loan 
and each Federal ONE Parent Loan for which 
the borrower is receiving counseling under this 
subsection, the contact information for the loan 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00428
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
429 
servicer of the loan and a link to such servicer’s 
Website. 
‘‘(6) ANNUAL
LOAN
ACCEPTANCE.—Prior to 
making the first disbursement of a loan made under 
this title (other than a Federal Direct Consolidation 
Loan or Federal ONE Consolidation Loan) to a bor-
rower for an award year, an eligible institution, 
shall, as part of carrying out the counseling require-
ments of this subsection for the loan, ensure that 
after receiving the applicable counseling under para-
graphs (2), (4), and (5) for the loan the borrower 
accepts the loan for such award year by— 
‘‘(A) signing the master promissory note 
for the loan; 
‘‘(B) signing and returning to the institu-
tion a separate written statement that affirma-
tively states that the borrower accepts the loan; 
or 
‘‘(C) electronically signing an electronic 
version of the statement described in subpara-
graph (B).’’. 
(i) ONLINE COUNSELING TOOLS.—Section 485 (20 
U.S.C. 1092) is further amended by adding at the end 
the following: 
‘‘(n) ONLINE COUNSELING TOOLS.— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00429
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
430 
‘‘(1) IN GENERAL.—Beginning not later than 1 
year after the date of enactment of the PROSPER 
Act, the Secretary shall maintain— 
‘‘(A) an online counseling tool that pro-
vides the exit counseling required under sub-
section (b) and meets the applicable require-
ments of this subsection; and 
‘‘(B) an online counseling tool that pro-
vides the annual counseling required under sub-
section (l) and meets the applicable require-
ments of this subsection. 
‘‘(2) REQUIREMENTS OF TOOLS.—In maintain-
ing the online counseling tools described in para-
graph (1), the Secretary shall ensure that each such 
tool is— 
‘‘(A) consumer tested to ensure that the 
tool is effective in helping individuals under-
stand their rights and obligations with respect 
to borrowing a loan made this title or receiving 
a Federal Pell Grant; 
‘‘(B) understandable to students receiving 
Federal Pell Grants and borrowers of loans 
made this title; and 
‘‘(C) freely available to all eligible institu-
tions. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00430
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
431 
‘‘(3) RECORD OF COUNSELING COMPLETION.— 
The Secretary shall— 
‘‘(A) use each online counseling tool de-
scribed in paragraph (1) to keep a record of 
which individuals have received counseling using 
the tool, and notify the applicable institutions 
of the individual’s completion of such coun-
seling; 
‘‘(B) in the case of a borrower who re-
ceives annual counseling for a loan made under 
this title using the tool described in paragraph 
(1)(B), notify the borrower by when the bor-
rower should accept, in a manner described in 
subsection (l)(6), the loan for which the bor-
rower has received such counseling; and 
‘‘(C) in the case of a borrower described in 
subsection (b)(1)(B) at an institution that uses 
the online counseling tool described in para-
graph (1)(A) of this subsection, the Secretary 
shall attempt to provide the information de-
scribed in subsection (b)(1)(A) to the borrower 
through such tool.’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00431
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
432 
SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGI-
BILITY. 
Section 485E (21 U.S.C. 20 U.S.C. 1092f) is amend-
ed— 
(1) in subsection (b)— 
(A) in paragraph (2)— 
(i) by striking ‘‘junior year’’ and in-
serting ‘‘sophomore year’’; 
(ii) by striking ‘‘The Secretary shall 
ensure that’’ and inserting ‘‘The Secretary 
shall— 
‘‘(A) ensure that’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) create an online platform for States, 
institutions of higher education, other organiza-
tions involved in college access and student fi-
nancial aid, secondary schools, and programs 
under this title that serve secondary school stu-
dents to share best practices on disseminating 
information under this section.’’; and 
(B) in paragraph (4)— 
(i) in the first sentence— 
(I) by striking ‘‘Not later than 
two years after the date of enactment 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00432
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
433 
of the Higher Education Opportunity 
Act, the’’ and inserting ‘‘The’’; and 
(II) by inserting ‘‘continue to’’ 
before ‘‘implement’’; and 
(ii) in the second sentence, by striking 
‘‘the Internet’’ and inserting ‘‘the Internet, 
including through social media’’; and 
(2) by adding at the end the following: 
‘‘(c) ONLINE ESTIMATOR TOOL.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of the PROSPER Act, the 
Secretary, in consultation with States, institutions of 
higher education, and other individuals with experi-
ence or expertise in student financial assistance ap-
plication processes, shall develop an early estimator 
tool to be available online and through a mobile ap-
plication, which— 
‘‘(A) allows an individual to— 
‘‘(i) enter basic financial and other 
relevant information; and 
‘‘(ii) on the basis of such information, 
receive non-binding estimates of potential 
Federal grant, loan, or work study assist-
ance under this title for which a student 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00433
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
434 
may be eligible upon completion of an ap-
plication form under section 483(a); 
‘‘(B) with respect to each institution of 
higher education that participates in a program 
under this title selected by an individual for 
purposes of the estimator tool, provides the in-
dividual with the net price (as defined in section 
132) for the income category described in para-
graph (2) that is determined on the basis of the 
information under subparagraph (A)(i) of this 
paragraph entered by the individual; and 
‘‘(C) includes a clear and conspicuous dis-
claimer that the amounts calculated using the 
estimator tool are estimates based on limited fi-
nancial information, and that— 
‘‘(i) each such estimate— 
‘‘(I) in the case of an estimate 
under subparagraph (A), is only an 
estimate and does not represent a 
final determination, or actual award, 
of financial assistance under this title; 
‘‘(II) in the case of an estimate 
under subparagraph (B), is only an 
estimate and not a guarantee of the 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00434
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
435 
actual amount that a student may be 
charged; 
‘‘(III) shall not be binding on the 
Secretary or an institution of higher 
education; and 
‘‘(IV) may change; and 
‘‘(ii) a student must complete an ap-
plication form under section 483(a) in 
order to be eligible for, and receive, an ac-
tual financial aid award that includes Fed-
eral grant, loan, or work study assistance 
under this title. 
‘‘(2) INCOME
CATEGORIES.—The income cat-
egories for purposes of paragraph (1)(B) are as fol-
lows: 
‘‘(A) $0 to $30,000. 
‘‘(B) $30,001 to $48,000. 
‘‘(C) $48,001 to $75,000. 
‘‘(D) $75,001 to $110,000. 
‘‘(E) $110,001 to $150,000. 
‘‘(F) Over $150,000. 
‘‘(3) CONSUMER TESTING.—In developing and 
maintaining the estimator tool described in para-
graph (1), the Secretary shall conduct consumer 
testing with appropriate persons, including current 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00435
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
436 
and prospective college students, family members of 
such students, and other individuals with expertise 
in student financial assistance application processes 
and college access, to ensure that such tool is easily 
understandable by students and families and effec-
tive in communicating early aid eligibility. 
‘‘(4) DATA STORAGE PROHIBITED.—In carrying 
out this subsection, the Secretary shall not keep, 
store, or warehouse any data inputted by individuals 
accessing the tool described in paragraph (1). 
‘‘(d) PELL TABLE.— 
‘‘(1) IN
GENERAL.—The Secretary shall de-
velop, and annually update at the beginning of each 
award year, the following electronic tables to be uti-
lized in carrying out this section and containing the 
information described in paragraph (2) of this sub-
section: 
‘‘(A) An electronic table for dependent stu-
dents. 
‘‘(B) An electronic table for independent 
students with dependents other than a spouse. 
‘‘(C) An electronic table for independent 
students without dependents other than a 
spouse. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00436
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
437 
‘‘(2) 
INFORMATION.—Each 
electronic 
table 
under paragraph (1), with respect to the category of 
students to which the table applies for the most re-
cently completed award year for which information 
is available, and disaggregated in accordance with 
paragraph (3), shall contain the following informa-
tion: 
‘‘(A) The percentage of undergraduate stu-
dents attending an institution of higher edu-
cation on a full-time, full-academic year basis 
who file the financial aid form prescribed under 
section 483 for the award year and received, for 
their first academic year during such award 
year (and not for any additional payment peri-
ods after such first academic year), the fol-
lowing: 
‘‘(i) A Federal Pell Grant equal to the 
maximum amount of a Federal Pell Grant 
award determined under section 401(b)(2) 
for such award year. 
‘‘(ii) A Federal Pell Grant in an 
amount that is— 
‘‘(I) less than the maximum 
amount described in clause (i); and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00437
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
438 
‘‘(II) not less than 3⁄4 of such 
maximum amount for such award 
year. 
‘‘(iii) A Federal Pell Grant in an 
amount that is— 
‘‘(I) less than 3⁄4 of such max-
imum amount; and 
‘‘(II) not less than 1⁄2 of such 
maximum amount for such award 
year. 
‘‘(iv) A Federal Pell Grant in an 
amount that is— 
‘‘(I) less than 1⁄2 of such max-
imum amount; and 
‘‘(II) not less than the minimum 
Federal Pell Grant amount deter-
mined under section 401(b)(4) for 
such award year. 
‘‘(B) The dollar amounts equal to— 
‘‘(i) the maximum amount of a Fed-
eral Pell Grant award determined under 
section 401(b)(2) for an award year; 
‘‘(ii) 3⁄4 of such maximum amount; 
‘‘(iii) 1⁄2 of such maximum amount; 
and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00438
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
439 
‘‘(iv) the minimum Federal Pell Grant 
amount 
determined 
under 
section 
401(b)(4) for such award year. 
‘‘(C) A clear and conspicuous notice that— 
‘‘(i) the Federal Pell Grant amounts 
listed in subparagraph (B) are for a pre-
vious award year, and such amounts and 
the 
requirements 
for 
awarding 
such 
amounts may be different for succeeding 
award years; and 
‘‘(ii) the Federal Pell Grant amount 
for which a student may be eligible will be 
determined based on a number of factors, 
including enrollment status, once the stu-
dent completes an application form under 
section 483(a). 
‘‘(D) A link to the early estimator tool de-
scribed in subsection (c) of this section, which 
includes an explanation that an individual may 
estimate a student’s potential Federal aid eligi-
bility under this title by accessing the estimator 
on the individual’s mobile phone or online. 
‘‘(3) INCOME
CATEGORIES.—The information 
provided 
under 
paragraph 
(2)(A) 
shall 
be 
disaggregated by the following income categories: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00439
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
440 
‘‘(A) Less than $5,000. 
‘‘(B) $5,000 to $9,999. 
‘‘(C) $10,000 to $19,999. 
‘‘(D) $20,000 to $29,999. 
‘‘(E) $30,000 to $39,999. 
‘‘(F) $40,000 to $49,999. 
‘‘(G) $50,000 to $59,999. 
‘‘(H) Greater than $59,999. 
‘‘(e) LIMITATION.—The Secretary may not require a 
State to participate in the activities or disseminate the 
materials described in this section.’’. 
SEC. 490. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAMS. 
Section 486 (20 U.S.C. 1093(b)) is repealed. 
SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREE-
MENTS. 
(a) PROGRAM PARTICIPATION AGREEMENTS.—Sec-
tion 487(a) (20 U.S.C. 1094(a)) is amended in the matter 
before paragraph (1) by striking ‘‘, except with respect 
to a program under subpart 4 of part A’’. 
(b) 
PERKINS
CONFORMING
CHANGES.—Section 
487(a)(5) (20 U.S.C. 1094(a)(5)) is amended by striking 
‘‘and, in the case of an institution participating in a pro-
gram under part B or part E, to holders of loans made 
to the institution’s students under such parts’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00440
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
441 
(c) CERTIFICATIONS TO LENDERS.—Section 487(a) 
(20 U.S.C. 1094(a)) is amended by striking paragraph 
(6). 
(d) STATE GRANT ASSISTANCE.—Section 487(a)(9) 
(20 U.S.C. 1094(a)(9)) is amended by striking ‘‘in a pro-
gram under part B or D’’ and inserting ‘‘in a loan pro-
gram under this title’’. 
(e) DRUG ABUSE PREVENTION PROGRAMS.—Section 
487(a) (20 U.S.C. 1094(a)) is amended by striking para-
graph (10). 
(f) 
REPAYMENT
SUCCESS
PLAN.—Section 
487(a)(14) (20 U.S.C. 1094(a)(14)) is amended— 
(1) by striking ‘‘under part B or D’’ both 
places it appears and inserting ‘‘a loan program 
under this title’’; 
(2) by striking ‘‘Default Management Plan’’ 
both places it appears and inserting ‘‘Repayment 
Success Plan’’; and 
(3) in subparagraph (C), by striking ‘‘a cohort 
default rate in excess of 10 percent’’ both places it 
appears and inserting ‘‘any program with a loan re-
payment rate less than 65 percent’’. 
(g) COMMISSIONS TO THIRD-PARTY ENTITIES.—Sec-
tion 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00441
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
442 
(1) by striking ‘‘The institution’’ and inserting 
‘‘(A) Except as provided in subparagraph (B), the 
institution’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) An institution described in section 101 
may provide payment, based on— 
‘‘(i) the amount of tuition generated by the 
institution from student enrollment, to a third- 
party entity that provides a set of services to 
the institution that includes student recruit-
ment services, regardless of whether the third- 
party entity is affiliated with an institution that 
provides educational services other than the in-
stitution providing such payment, if— 
‘‘(I) the third-party entity is not affili-
ated with the institution providing such 
payment; 
‘‘(II) the third-party entity does not 
make compensation payments to its em-
ployees that would be prohibited under 
subparagraph (A) if such payments were 
made by the institution; 
‘‘(III) the set of services provided to 
the institution by the third-party entity in-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00442
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
443 
clude services in addition to student re-
cruitment services, and the institution does 
not pay the third-party entity solely or sep-
arately for student recruitment services 
provided by the third-party entity; and 
‘‘(IV) any student recruitment infor-
mation available to the third-party entity, 
including personally identifiable informa-
tion, will not be used by, shared with, or 
sold to any other person or entity, includ-
ing any institution that is affiliated with 
the third-party entity, unless written con-
sent is provided by the student; and 
‘‘(ii) students successfully completing their 
educational programs, to persons who were en-
gaged in recruiting such students, but solely to 
the extent that such payments— 
‘‘(I) are obligated to be paid, and are 
actually paid, only after each student upon 
whom such payments are based has suc-
cessfully completed his or her educational 
program; and 
‘‘(II) are paid only to employees of 
the institution or its parent company, and 
not to any other person or outside entity.’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00443
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
444 
(h) CLARIFICATION OF PROOF OF AUTHORITY TO 
OPERATE WITHIN
A STATE.—Section 487(a)(21) (20 
U.S.C. 1094(a)(21)) is amended by striking ‘‘within a 
State’’ and inserting ‘‘within a State in which it maintains 
a physical location’’. 
(i) 
DISTRIBUTION
OF
VOTER
REGISTRATION 
FORMS.—Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is 
amended to read as follows: 
‘‘(23) The institution, if located in a State to 
which section 4(b) of the National Voter Registra-
tion Act of 1993 (42 U.S.C. 1973gg–2(b)) does not 
apply, will make a good faith effort to distribute, in-
cluding through electronic transmission, voter reg-
istration forms to students enrolled and physically in 
attendance at the institution.’’. 
(j) PROHIBITING COPYRIGHT INFRINGEMENT.—Sec-
tion 487(a)(29) (20 U.S.C. 1094(a)(29)) is amended to 
read as follows: 
‘‘(29) The institution will have a policy prohib-
iting copyright infringement.’’. 
(k) MODIFICATIONS TO PREFERRED LENDER LIST 
REQUIREMENTS.—Section 
487(h)(1) 
(20 
U.S.C. 
1094(h)(1)) is amended— 
(1) in subparagraph (A)— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00444
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
446 
(A) 
by 
redesignating 
paragraphs 
(7) 
through (9), as paragraphs (6) through (8), re-
spectively; 
(B) by redesignating paragraphs (11) 
through (23) as paragraphs (9) through (21), 
respectively; and 
(C) by redesignating paragraphs (25) 
through (29) as paragraphs (22) through (26), 
respectively; 
(2) in section 487(c)(1)(A)(iii) (20 U.S.C. 
1094(c)(1)(A)(iii)), 
by 
striking 
‘‘section 
102(a)(1)(C)’’ and inserting ‘‘section 102(a)(1)’’; 
and 
(3) 
in 
section 
487(h)(4) 
(20 
U.S.C. 
1094(h)(4)), as redesignated by subsection (l)(3), by 
striking ‘‘section 102’’ and inserting ‘‘section 101 or 
102’’. 
SEC. 492. REGULATORY RELIEF AND IMPROVEMENT. 
Section 487A (20 U.S.C. 1094a) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘The 
Secretary is authorized to’’ and inserting ‘‘The 
Secretary shall’’; and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00446
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
447 
(B) in paragraph (5), by inserting ‘‘at 
least once every two years’’ before the period at 
the end; and 
(2) in subsection (b)— 
(A) in paragraph (2)— 
(i) in the paragraph heading, by in-
serting ‘‘ANNUAL’’ before ‘‘REPORT’’; and 
(ii) by striking the first sentence and 
inserting ‘‘The Secretary shall review the 
experience, and rigorously evaluate the ac-
tivities, of all institutions participating as 
experimental sites and shall, on an annual 
basis, submit a report based on the review 
and evaluation findings to the authorizing 
committees.’’; 
(B) in paragraph (3), by amending sub-
paragraph (A) to read as follows: 
‘‘(A) IN GENERAL.— 
‘‘(i) EXPERIMENTAL SITES.—The Sec-
retary is authorized periodically to select a 
limited number of institutions for vol-
untary participation as experimental sites 
to provide recommendations to the Sec-
retary and to the Congress on the impact 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00447
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
448 
and effectiveness of proposed regulations 
or new management initiatives. 
‘‘(ii) CONGRESSIONAL
NOTICE
AND 
COMMENTS REQUIRED.— 
‘‘(I) NOTICE.—Prior to announc-
ing a new experimental site and invit-
ing institutions to participate, the 
Secretary shall provide to the author-
izing committees a notice that shall 
include— 
‘‘(aa) a description of the 
proposed experiment and ration-
ale for the proposed experiment; 
and 
‘‘(bb) a list of the institu-
tional requirements the Secretary 
expects to waive and the legal au-
thority for such waivers. 
‘‘(II) 
CONGRESSIONAL
COM-
MENTS.—The Secretary shall not pro-
ceed with announcing a new experi-
mental site and inviting institutions to 
participate until 10 days after the 
Secretary— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00448
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
449 
‘‘(aa) receives and addresses 
all comments from the author-
izing committees; and 
‘‘(bb) responds to such com-
mittees in writing with an expla-
nation of how such comments 
have been addressed. 
‘‘(iii) PROHIBITION.—The Secretary is 
not authorized to carry out clause (i) in 
any year in which an annual report de-
scribed in paragraph (2) relating to the 
previous year is not submitted to the au-
thorizing committees.’’; 
(C) in paragraph (4)(A), by striking ‘‘bien-
nial’’ and inserting ‘‘annual’’; and 
(D) by striking paragraph (1) and redesig-
nating paragraphs (2) through (4) as para-
graphs (1) through (3), respectively. 
SEC. 493. TRANSFER OF ALLOTMENTS. 
Section 488 (20 U.S.C. 1095) is amended— 
(1) by inserting ‘‘, as in effect on the day before 
the date of enactment of the PROSPER Act,’’ after 
‘‘section 462’’; and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00449
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
450 
(2) by inserting ‘‘, as in effect on the day before 
the date of enactment of the PROSPER Act,’’ after 
‘‘462’’. 
SEC. 494. ADMINISTRATIVE EXPENSES. 
Section 489(a) (20 U.S.C. 1096(a)) is amended— 
(1) in the second sentence— 
(A) by striking ‘‘subpart 3 of part A or 
part C,’’ and inserting ‘‘part C’’; and 
(B) by striking ‘‘or under part E of this 
title’’; and 
(2) in the third sentence— 
(A) by striking ‘‘its grants to students 
under subpart 3 of part A,’’; and 
(B) by striking ‘‘, and the principal 
amount of loans made during such fiscal year 
from its student loan fund established under 
part E, excluding the principal amount of any 
such loans which the institution has referred 
under section 463(a)(4)(B)’’. 
SEC. 494A. REPEAL OF ADVISORY COMMITTEE. 
Section 491 (20 U.S.C. 1098) is repealed. 
SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULE-
MAKING. 
Section 492 (20 U.S.C. 1098a) is amended— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00450
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
451 
(1) by redesignating subsections (c) and (d) as 
subsections (f) and (g), respectively; and 
(2) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a) IN GENERAL.—The Secretary may, in accord-
ance with this section, issue such regulations as are rea-
sonably necessary to ensure compliance with this title. 
‘‘(b) PUBLIC INVOLVEMENT.—The Secretary shall 
obtain public involvement in the development of proposed 
regulations for this title. Before carrying out a negotiated 
rulemaking process as described in subsection (d) or pub-
lishing in the Federal Register proposed regulations to 
carry out this title, the Secretary shall obtain advice and 
recommendations from individuals, and representatives of 
groups, involved in student financial assistance programs 
under this title, such as students, institutions of higher 
education, financial aid administrators, accrediting agen-
cies or associations, State student grant agencies, guar-
anty agencies, lenders, secondary markets, loan servicers, 
guaranty agency servicers, and collection agencies. 
‘‘(c) MEETINGS AND ELECTRONIC EXCHANGE.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
for a comprehensive discussion and exchange of in-
formation concerning the implementation of this title 
through such mechanisms as regional meetings and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00451
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
452 
electronic exchanges of information. Such regional 
meetings and electronic exchanges of information 
shall be public and notice of such meetings and ex-
changes shall be provided to— 
‘‘(A) the authorizing committees at least 
10 days prior to the notice to interested stake-
holders and the public described in subpara-
graph (B); and 
‘‘(B) interested stakeholders and the public 
at least 30 days prior to such meetings and ex-
changes. 
‘‘(2) CONSIDERATION.—The Secretary shall 
take into account the information received through 
such mechanisms in the development of proposed 
regulations and shall publish a summary of such in-
formation in the Federal Register prior to beginning 
the negotiated rulemaking process described in sub-
section (d). 
‘‘(d) NEGOTIATED RULEMAKING PROCESS.— 
‘‘(1) NEGOTIATED RULEMAKING REQUIRED.— 
All regulations pertaining to this title that are pro-
mulgated after the date of the enactment of this 
paragraph shall be subject to the negotiated rule-
making process described in this subsection (includ-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00452
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
453 
ing the selection of the issues to be negotiated), un-
less the Secretary— 
‘‘(A) determines that applying such a re-
quirement with respect to given regulations is 
impracticable, unnecessary, or contrary to the 
public interest (within the meaning of section 
553(b)(3)(B) of title 5, United States Code); 
‘‘(B) publishes the basis for such deter-
mination in the Federal Register at the same 
time as the proposed regulations in question are 
first published; and 
‘‘(C) includes the basis for such determina-
tion in the congressional notice under sub-
section (e)(1). 
‘‘(2) CONGRESSIONAL NOTICE AND COMMENTS 
REQUIRED.— 
‘‘(A) NOTICE.—The Secretary shall pro-
vide to the Committee on Education and the 
Workforce of the House of Representatives and 
the Committee on Health, Education, Labor, 
and Pensions of the Senate notice of the intent 
establish a negotiated rulemaking committee 
that shall include— 
‘‘(i) the need to issue regulations; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00453
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
454 
‘‘(ii) the statutory and legal authority 
of the Secretary to regulate the issue; 
‘‘(iii) the summary of public com-
ments described in paragraph (2) of sub-
section (c); 
‘‘(iv) the anticipated burden, including 
the time, cost, and paperwork burden, the 
regulations will have on institutions of 
higher education and other entities that 
may be impacted by the regulations; and 
‘‘(v) any regulations that will be re-
pealed when the new regulations are 
issued. 
‘‘(B) CONGRESSIONAL
COMMENTS.—The 
Secretary shall not proceed with the negotiated 
rulemaking process— 
‘‘(i) until 10 days after the Sec-
retary— 
‘‘(I) receives and addresses all 
comments from the authorizing com-
mittees; and 
‘‘(II) responds to the authorizing 
committees in writing with an expla-
nation of how such comments have 
been addressed; or 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00454
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
455 
‘‘(ii) until 60 days after providing the 
notice required under subparagraph (A) if 
the Secretary has not received comments 
under clause (i). 
‘‘(3) PROCESS.—After obtaining advice and rec-
ommendations under subsections (b) and (c), and 
before publishing proposed regulations, the Secretary 
shall— 
‘‘(A) establish a negotiated rulemaking 
process; 
‘‘(B) select individuals to participate in 
such process— 
‘‘(i) from among individuals or groups 
that provided advice and recommendations 
under subsections (b) and (c), including— 
‘‘(I) 
representatives 
of 
such 
groups from Washington, DC; and 
‘‘(II) other industry participants; 
and 
‘‘(ii) with demonstrated expertise or 
experience in the relevant subjects under 
negotiation, reflecting the diversity in the 
industry, representing both large and small 
participants, as well as individuals serving 
local areas and national markets; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00455
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
456 
‘‘(C) prepare a draft of proposed policy op-
tions, which shall take into account comments 
received from both the public and the author-
izing committees, that shall be provided to the 
individuals selected by the Secretary under sub-
paragraph (B) and such authorizing committees 
not less than 15 days before the first meeting 
under such process; and 
‘‘(D) ensure that the negotiation process is 
conducted in a timely manner in order that the 
final regulations may be issued by the Secretary 
within the 360-day period described in section 
437(e) of the General Education Provisions Act 
(20 U.S.C. 1232(e)). 
‘‘(4) AGREEMENTS AND RECORDS.— 
‘‘(A) AGREEMENTS.—All published pro-
posed regulations developed through the nego-
tiation process under this subsection shall con-
form to all agreements resulting from such 
process unless the Secretary reopens the nego-
tiated rulemaking process. 
‘‘(B) RECORDS.—The Secretary shall en-
sure that a clear and reliable record is main-
tained of agreements reached during a negotia-
tion process under this subsection. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00456
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
457 
‘‘(e) PROPOSED RULEMAKING.—If the Secretary de-
termines pursuant to subsection (d)(1) that a negotiated 
rulemaking process is impracticable, unnecessary, or con-
trary to the public interest (within the meaning of section 
553(b)(3)(B) of title 5, United States Code), or the indi-
viduals selected to participate in the process under sub-
section (d)(3)(B) fail to reach unanimous agreement on 
an issue being negotiated, the Secretary may propose reg-
ulations subject to subsection (f). 
‘‘(f) REQUIREMENTS
FOR
PROPOSED
REGULA-
TIONS.—Regulations proposed pursuant to subsection (e) 
shall meet the following procedural requirements: 
‘‘(1) CONGRESSIONAL NOTICE.—Regardless of 
whether congressional notice was submitted under 
subsection (d)(2), the Secretary shall provide to the 
Committee on Education and the Workforce of the 
House of Representatives and the Committee on 
Health, Education, Labor, and Pensions of the Sen-
ate notice that shall include— 
‘‘(A) a copy of the proposed regulations; 
‘‘(B) the need to issue regulations; 
‘‘(C) the statutory and legal authority of 
the Secretary to regulate the issue; 
‘‘(D) the anticipated burden, including the 
time, cost, and paperwork burden, the regula-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00457
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
458 
tions will have on institutions of higher edu-
cation and other entities that may be impacted 
by the regulations; and 
‘‘(E) any regulations that will be repealed 
when the new regulations are issued. 
‘‘(2) CONGRESSIONAL
COMMENTS.—The Sec-
retary may not proceed with the rulemaking proc-
ess— 
‘‘(A) until 10 days after the Secretary— 
‘‘(i) receives and addresses all com-
ments from the authorizing committees; 
and 
‘‘(ii) responds to the authorizing com-
mittees in writing with an explanation of 
how such comments have been addressed; 
or 
‘‘(B) until 60 days after providing the no-
tice required under paragraph (1) if the Sec-
retary has not received comments under sub-
paragraph (A). 
‘‘(3) COMMENT
AND
REVIEW
PERIOD.—The 
comment and review period for the proposed regula-
tion shall be 90 days unless an emergency requires 
a shorter period, in which case such period shall be 
not less than 45 days and the Secretary shall— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00458
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
459 
‘‘(A) designate the proposed regulation as 
an emergency, with an explanation of the emer-
gency, in the notice to the Congress under 
paragraph (1); 
‘‘(B) publish the length of the comment 
and review period in such notice and in the 
Federal Register; and 
‘‘(C) conduct immediately thereafter re-
gional meetings to review such proposed regula-
tion before issuing any final regulation. 
‘‘(4) INDEPENDENT ASSESSMENT.—No regula-
tion shall be made final after the comment and re-
view period until the Secretary has published in the 
Federal Register an independent assessment (which 
shall include a representative sampling of institu-
tions of higher education based on sector, enroll-
ment, urban, suburban, or rural character, and 
other factors impacted by the regulation) of— 
‘‘(A) the burden, including the time, cost, 
and paperwork burden, the final regulation will 
impose on institutions and other entities that 
may be impacted by the regulation; 
‘‘(B) an explanation of how the entities de-
scribed in subparagraph (A) may cover the cost 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00459
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
460 
of the burden assessed under such subpara-
graph; and 
‘‘(C) the regulation, including a thorough 
assessment, based on the comments received 
during the comment and review period under 
paragraph (3), of whether the rule is finan-
cially, operationally, and educationally viable at 
the institutional level.’’. 
SEC. 494C. DEFERRAL OF LOAN REPAYMENT FOLLOWING 
ACTIVE DUTY. 
Section 493D(a) (20 U.S.C. 1098f) is amended, by 
striking ‘‘or section 464(c)(2)(A)(iii)’’ and inserting ‘‘, 
section 464(c)(2)(A)(iii) (as in effect on the day before 
the date of enactment of the PROSPER Act and pursuant 
to section 461(a)), or section 469A(a)(2)(A)(iii)’’. 
SEC. 494D. CONTRACTS; MATCHING PROGRAM. 
(a) CONTRACTS FOR SUPPLIES AND SERVICES.— 
(1) IN
GENERAL.—Part G of title IV (20 
U.S.C. 1088 et seq.), as amended by this part, is 
further amended by adding at the end the following: 
‘‘SEC. 493E. CONTRACTS. 
‘‘(a) CONTRACTS FOR SUPPLIES AND SERVICES.— 
‘‘(1) IN GENERAL.—The Secretary shall, to the 
extent practicable, award contracts for origination, 
servicing, and collection described in subsection (b). 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00460
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
461 
In awarding such contracts, the Secretary shall en-
sure that such services and supplies are provided at 
competitive prices. 
‘‘(2) ENTITIES.—The entities with which the 
Secretary may enter into contracts shall include en-
tities qualified to provide such services and supplies 
and will comply with the procedures applicable to 
the award of such contracts. In the case of awarding 
contracts for the origination, servicing, and collec-
tion of loans under parts D and E, the Secretary 
shall enter into contracts with entities that have ex-
tensive and relevant experience and demonstrated ef-
fectiveness. The entities with which the Secretary 
may enter into such contracts may include, where 
practicable, agencies with agreements with the Sec-
retary under sections 428(b) and (c), if such agen-
cies meet the qualifications as determined by the 
Secretary under this subsection and if those agencies 
have such experience and demonstrated effective-
ness. In awarding contracts to such State agencies, 
the Secretary shall, to the extent practicable and 
consistent with the purposes of parts D and E, give 
consideration to State agencies with a history of 
high quality performance to perform services for in-
stitutions of higher education within their State. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00461
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
462 
‘‘(3) ALLOCATIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall allocate 
new borrower loan accounts to entities awarded 
a contract under this section on the basis of— 
‘‘(i) the performance of each such en-
tity compared to other such entities per-
forming similar work using common per-
formance metrics, as determined by the 
Secretary; and 
‘‘(ii) the capacity of each such entity 
compared to other such entities performing 
similar work to service new and existing 
borrower loan accounts. 
‘‘(B) 
FEDERAL
ONE
CONSOLIDATION 
LOANS.—Any borrower who receives a Federal 
ONE Consolidation Loan may select the entity 
awarded a contract under this section to service 
such loan. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed as a limitation of the 
authority of any State agency to enter into an agree-
ment for the purposes of this section as a member 
of a consortium of State agencies. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00462
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
463 
‘‘(b) CONTRACTS FOR ORIGINATION, SERVICING, AND 
DATA SYSTEMS.—The Secretary may enter into contracts 
for— 
‘‘(1) the servicing and collection of loans made 
or purchased under part D or E; 
‘‘(2) the establishment and operation of one or 
more data systems for the maintenance of records 
on all loans made or purchased under part D or E; 
and 
‘‘(3) such other aspects of the direct student 
loan program under part D or E necessary to ensure 
the successful operation of the program. 
‘‘(c) COMMON PERFORMANCE MANUAL.— 
‘‘(1) CONSULTATION.—Not later than 180 days 
after the date of enactment of the PROSPER Act 
and biannually thereafter, the Secretary shall con-
sult (in writing and in person) with entities awarded 
contracts for loan servicing under section 456 (as in 
effect on the day before the date of enactment of the 
PROSPER Act) and this section, to the extent prac-
ticable, to develop and update as necessary, a guid-
ance manual for entities awarded contracts for loan 
servicing under this section that provides such enti-
ties with best practices to ensure borrowers receive 
adequate and consistent service from such entities. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00463
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
464 
‘‘(2) PROVISION OF MANUAL.—The Secretary 
shall provide the most recent guidance manual devel-
oped and updated under paragraph (1) to each enti-
ty awarded a contract for loan serving under this 
section. 
‘‘(3) ANNUAL
REPORT.—The Secretary shall 
provide to the authorizing committees a report, on 
a annual basis, detailing the consultation required 
under paragraph (1). 
‘‘(d) FEDERAL PREEMPTION.— 
‘‘(1) DISCLOSURE AND COMMUNICATIONS.—An 
entity awarded a contract under this section for the 
origination, servicing, and collection of loans made 
under this title shall not be subject to any law or 
other requirement of any State or political subdivi-
sion of a State with respect to— 
‘‘(A) disclosure requirements; or 
‘‘(B) requirements or restrictions on the 
time, quantity, or frequency of communications 
with borrowers, endorsers, or references with 
respect to such loans. 
‘‘(2) SERVICING
AND
COLLECTION.—The re-
quirements of this section with respect to the serving 
or collection of loans shall preempt any law or other 
requirement of a State or political subdivision of a 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00464
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
465 
State to the extent that such law or other require-
ment would, in the absence of this subsection, apply 
to a loan servicer, or the servicing or collection, of 
a loan made under this title. 
‘‘(3) LIMITATION.—This subsection shall not 
have any legal effect on any other preemption provi-
sion under Federal law with respect to this title.’’. 
(2) CONFORMING
AMENDMENT.—Section 456 
(20 U.S.C. 1087f) is repealed. 
(b) MATCHING PROGRAM.—Part G of section IV (20 
U.S.C. 1088 et seq.), as amended by subsection (a), is 
further amended by adding at the end the following: 
‘‘SEC. 493F. MATCHING PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary of Education and 
the Secretary of Veterans Affairs shall carry out a com-
puter matching program under which the Secretary of 
Education identifies, on at least a quarterly basis, bor-
rowers— 
‘‘(1) who have been assigned a disability rating 
of 100 percent (or a combination of ratings equaling 
100 percent or more) by the Secretary of Veterans 
Affairs for a service-connected disability (as defined 
in section 101 of title 38, United States Code); or 
‘‘(2) who have been determined by the Sec-
retary of Veterans Affairs to be unemployable due to 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00465
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
466 
a service-connected condition, as described in section 
437(a)(2). 
‘‘(b) BORROWER NOTIFICATION.—With respect to 
each borrower who is identified under subsection (a), the 
Secretary shall, as soon as practicable after such identi-
fication— 
‘‘(1) notify the borrower of the borrower’s eligi-
bility for loan discharge under section 437(a); and 
‘‘(2) provide the borrower with simple instruc-
tions on how to apply for such loan discharge, in-
cluding an explanation that the borrower shall not 
be required to provide any documentation of the bor-
rower’s disability rating to receive such discharge. 
‘‘(c) DATA COLLECTION
AND REPORT
TO CON-
GRESS.— 
‘‘(1) IN GENERAL.—The Secretary shall annu-
ally collect and submit to the Committees on Edu-
cation and the Workforce and Veterans’ Affairs of 
the House of Representatives and the Committees 
on Health, Education, Labor, and Pensions and Vet-
erans Affairs of the Senate, data about borrowers 
applying for and receiving loan discharges under sec-
tion 437(a), which shall be disaggregated in the 
manner described in paragraph (2) and include the 
following: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00466
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
467 
‘‘(A) The number of applications received 
under section 437(a). 
‘‘(B) The number of such applications that 
were approved. 
‘‘(C) The number of loan discharges that 
were completed under section 437(a). 
‘‘(2) DISAGGREGATION.—The data collected 
under paragraph (1) shall be disaggregated— 
‘‘(A) by borrowers who applied under this 
section for loan discharges under section 
437(a); 
‘‘(B) by borrowers who received loan dis-
charges as a result of applying for such dis-
charges under this section; 
‘‘(C) by borrowers who applied for loan 
discharges under section 437(a)(2); and 
‘‘(D) by borrowers who received loan dis-
charges as a result of applying for such dis-
charges under section 437(a)(2). 
‘‘(d) NOTIFICATION TO BORROWERS.—The Secretary 
shall notify each borrower whose liability on a loan has 
been discharged under section 437(a) that the liability on 
the loan has been so discharged.’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00467
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
468 
PART H—PROGRAM INTEGRITY 
SEC. 495. REPEAL OF AND PROHIBITION ON STATE AU-
THORIZATION REGULATIONS. 
(a) REGULATIONS REPEALED.—The following regu-
lations relating to State authorization (including any sup-
plements or revisions to such regulations) are repealed and 
shall have no force or effect: 
(1) The final regulations published by the De-
partment of Education in the Federal Register on 
October 29, 2010 (75 Fed. Reg. 66832 et seq.). 
(2) The final regulations published by the De-
partment of Education in the Federal Register on 
December 19, 2016 (81 Fed. Reg. 92232 et seq). 
(b) PROHIBITION ON STATE AUTHORIZATION REGU-
LATIONS.—Section 495 (20 U.S.C. 1099a) is amended by 
striking subsection (b) and inserting the following: 
‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each insti-
tution of higher education shall provide evidence to the 
Secretary that the institution has authority to operate 
within each State in which it maintains a physical location 
at the time the institution is certified under subpart 3. 
‘‘(c) TREATMENT OF RELIGIOUS INSTITUTIONS.—An 
institution shall be treated as legally authorized to operate 
educational programs beyond secondary education in a 
State under section 101(a)(2) if the institution is— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00468
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
469 
‘‘(1) recognized as a religious institution by the 
State; and 
‘‘(2) because of the institution’s status as a reli-
gious institution, the institution is exempt from any 
provision of State law that requires institutions to be 
authorized by the State to operate educational pro-
grams beyond secondary education. 
‘‘(d) PROHIBITION ON STATE AUTHORIZATION REG-
ULATIONS.—The Secretary shall not promulgate or en-
force any regulation or rule not in effect on the date of 
enactment of the PROSPER Act for any purpose under 
this Act with respect to the State authorization for institu-
tions of higher education to operate within a State.’’. 
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR AS-
SOCIATION. 
Section 496 (20 U.S.C. 1099b) is amended— 
(1) by striking ‘‘section 102’’ each place it ap-
pears and inserting ‘‘section 101’’; 
(2) in subsection (a)— 
(A) in paragraph (2), by amending sub-
paragraph (A) to read as follows: 
‘‘(A) for the purpose of participation in 
programs under this Act or other programs ad-
ministered by the Department of Education or 
other Federal agencies, has a voluntary mem-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00469
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
470 
bership of institutions of higher education or 
other entities and has as a principal purpose 
the accrediting of institutions of higher edu-
cation or programs;’’; 
(B) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘subparagraph 
(A)(i)’’ and inserting ‘‘subparagraph 
(A) or (C)’’; 
(II) by striking ‘‘separate’’ and 
inserting ‘‘separately incorporated’’; 
and 
(III) by adding ‘‘or’’ at the end; 
(ii) by striking ‘‘or’’ at the end of sub-
paragraph (B); and 
(iii) by striking subparagraph (C); 
(C) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) by inserting ‘‘as defined by 
the institution’’ after ‘‘religious mis-
sions’’; 
(II) by striking ‘‘, including dis-
tance education or correspondence 
courses or programs,’’; and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00470
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
471 
(III) by striking ‘‘and’’ at the 
end; 
(ii) by striking subparagraph (B) and 
inserting the following: 
‘‘(B) such agency or association dem-
onstrates the ability to review, evaluate, and as-
sess the quality of any instruction delivery 
model or method such agency or association has 
or seeks to include within its scope of recogni-
tion, without giving preference to or differen-
tially treating a particular instruction delivery 
model or method offered by an institution of 
higher education or program; and 
‘‘(C) if such agency or association has or 
seeks to include within its scope of recognition 
the evaluation of the quality of competency- 
based education programs, such agency or asso-
ciation shall, in addition to meeting the other 
requirements of this subpart, demonstrate to 
the Secretary that, with respect to competency- 
based education programs— 
‘‘(i) the agency or association’s stand-
ards include a process for determining 
whether an institution or program requires 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00471
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
472 
the demonstration of competencies that 
are— 
‘‘(I) capable of being validly and 
reliably assessed; and 
‘‘(II) appropriate in scope and 
rigor for the award of the relevant 
certificate, degree, or other recognized 
educational credential; and 
‘‘(ii) the agency or association re-
quires that an institution or program dem-
onstrate that it— 
‘‘(I) has identified competencies 
that meet the requirements of sub-
clauses (I) and (II) of clause (i); 
‘‘(II) requires students to dem-
onstrate mastery of each relevant 
competency in order to earn the cer-
tificate, degree, or credential; 
‘‘(III) has the administrative ca-
pacity and expertise that will ensure 
the validity and reliability of assess-
ments of competencies and that the 
institution follows good practices in 
assessment and measurement; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00472
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
473 
‘‘(IV) provides sufficient faculty 
instruction, educational content, ac-
tivities, and resources to enable stu-
dents to learn or develop what is re-
quired to demonstrate or attain mas-
tery of competencies and that such re-
quirements are consistent with the 
claims that the institution makes for 
the qualifications of graduates; and 
‘‘(V) has defined an academic 
year 
in 
accordance 
with 
section 
481(a)(3);’’; 
(D) by amending paragraph (5) to read as 
follows: 
‘‘(5) the standards for accreditation of the 
agency or association assess the institution’s success 
with respect to student learning and educational out-
comes in relation to the institution’s mission, which 
may include different standards for different institu-
tions or programs, except that the standards shall 
include consideration of student learning and edu-
cational outcomes in relation to expected measures 
of student learning and educational outcomes, which 
at the agency’s or association’s discretion are estab-
lished— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00473
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
474 
‘‘(A) by the agency or association; or 
‘‘(B) by the institution or program, at the 
institution or program level, as the case may be, 
if the institution or program— 
‘‘(i) defines expected student learning 
goals and educational outcomes; 
‘‘(ii) measures and evaluates student 
learning, educational outcomes, and, if ap-
propriate, other outcomes of the students 
who complete their program of study; 
‘‘(iii) uses information about student 
learning, educational outcomes, and, if ap-
propriate, other outcomes, to improve the 
institution or program; and 
‘‘(iv) makes such information avail-
able to appropriate constituencies;’’; and 
(E) in paragraph (8), by striking ‘‘, upon 
request,’’; 
(3) in subsection (b)— 
(A) in the subsection heading, by striking 
‘‘SEPARATE’’ and inserting ‘‘SEPARATELY IN-
CORPORATED’’; 
(B) in the matter preceding paragraph (1), 
by striking ‘‘separate’’ and inserting ‘‘sepa-
rately incorporated’’; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00474
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
475 
(C) in paragraph (2), by inserting ‘‘who 
shall represent business’’ after ‘‘one such public 
member’’; and 
(D) in paragraph (4), by inserting before 
the period at the end ‘‘and is maintained sepa-
rately from any such entity or organization’’; 
(4) in subsection (c)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘(which may vary 
based on institutional risk consistent with 
policies promulgated by the agency or asso-
ciation to determine such risk and interval 
frequency as allowed under subsection 
(p))’’ after ‘‘intervals’’; and 
(ii) by striking ‘‘distance education’’ 
and 
inserting 
‘‘competency-based 
edu-
cation’’; 
(B) by striking paragraph (5) and redesig-
nating paragraphs (2), (3), and (4) as para-
graphs (3), (4), and (5), respectively; 
(C) by inserting after paragraph (1), the 
following: 
‘‘(2) develops a mechanism to identify institu-
tions or programs accredited by the agency or asso-
ciation that may be experiencing difficulties accom-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00475
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
476 
plishing their missions with respect to the student 
learning and educational outcome goals established 
under subsection (a)(5) and— 
‘‘(A) as appropriate, uses information such 
as student loan default or repayment rates, re-
tention or graduation rates, evidence of student 
learning, financial data, and other indicators to 
identify such institutions; 
‘‘(B) not less than annually, evaluates the 
extent to which those identified institutions or 
programs continue to be in compliance with the 
agency or association’s standards; and 
‘‘(C) as appropriate, requires the institu-
tion or program to address deficiencies and en-
sure that any plan to address and remedy defi-
ciencies is successfully implemented.’’; 
(D) in paragraph (4)(A), as so redesig-
nated, by striking ‘‘487(f)’’ and inserting 
‘‘487(e)’’; 
(E) by amending paragraph (5), as so re-
designated, to read as follows: 
‘‘(5) establishes and applies or maintains poli-
cies which ensure that any substantive change to the 
educational mission, program, or programs of an in-
stitution after the agency or association has granted 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00476
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
477 
the institution accreditation or preaccreditation sta-
tus does not adversely affect the capacity of the in-
stitution to continue to meet the agency’s or associa-
tion’s 
standards 
for 
such 
accreditation 
or 
preaccreditation status, which shall include policies 
that— 
‘‘(A) require the institution to obtain the 
agency’s or association’s approval of the sub-
stantive change before the agency or association 
includes the change in the scope of the institu-
tion’s accreditation or preaccreditation status; 
and 
‘‘(B) define substantive change to include, 
at a minimum— 
‘‘(i) any change in the established 
mission or objectives of the institution; 
‘‘(ii) any change in the legal status, 
form of control, or ownership of the insti-
tution; 
‘‘(iii) the addition of courses, pro-
grams of instruction, training, or study, or 
credentials or degrees that represent a sig-
nificant departure from the courses, pro-
grams, or credentials or degrees that were 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00477
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
478 
offered at time the agency or association 
last evaluated the institution; or 
‘‘(iv) the entering into a contract 
under which an institution or organization 
not certified to participate programs under 
title IV provides a portion of an accredited 
institution’s educational program that is 
greater than 25 percent;’’; 
(F) in paragraph (7)— 
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘, on the agency’s 
or association’s website,’’ after ‘‘public’’; 
(ii) in subparagraph (C), by inserting 
before the semicolon at the end the fol-
lowing: ‘‘, and a summary of why such ac-
tion was taken or such placement was 
made’’; 
(G) in paragraph (8), by striking ‘‘and’’ at 
the end; 
(H) in paragraph (9), by striking the pe-
riod at the end and inserting a semicolon; and 
(I) by adding at the end the following: 
‘‘(10) makes publicly available, on the agency 
or association’s website, a list of the institutions of 
higher education accredited by such agency or asso-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00478
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
479 
ciation, which includes, with respect to each institu-
tion on the list–— 
‘‘(A) the year accreditation was granted; 
‘‘(B) the most recent date of a comprehen-
sive evaluation of the institution under para-
graph (1); and 
‘‘(C) the anticipated date of the next such 
evaluation; and 
‘‘(11) confirms, as a part of the agency’s or as-
sociation’s review for accreditation or reaccredita-
tion, that the institution’s website includes consumer 
information described section paragraphs (1) and 
(2) of section 132(d).’’; 
(5) in subsection (e)— 
(A) by striking ‘‘The Secretary’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary’’; and 
(B) by adding at the end the following: 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply in the case of an institution described in sub-
section (j).’’. 
(6) by striking subsection (h) and inserting the 
following: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00479
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
480 
‘‘(h) CHANGE OF ACCREDITING AGENCY OR ASSOCIA-
TION.— 
‘‘(1) IN
GENERAL.—The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution is in 
the process of changing its accrediting agency or as-
sociation and is subject to one or more of the fol-
lowing actions, unless the eligible institution submits 
to the Secretary materials demonstrating a reason-
able cause for changing the accrediting agency or as-
sociation: 
‘‘(A) A pending or final action brought by 
a State agency to suspend, revoke, withdraw, or 
terminate the institution’s legal authority to 
provide postsecondary education in the State. 
‘‘(B) A decision by a recognized accred-
iting agency or association to deny accreditation 
or preaccreditation to the institution. 
‘‘(C) A pending or final action brought by 
a recognized accrediting agency or association 
to suspend, revoke, withdraw, or terminate the 
institution’s accreditation or preaccreditation. 
‘‘(D) Probation or an equivalent status im-
posed on the institution by a recognized accred-
iting agency or association. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00480
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
481 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to restrict the 
ability of an institution of higher education not sub-
ject to an action described in paragraph (1) and oth-
erwise in good standing to change accrediting agen-
cies or associations without the approval of the Sec-
retary as long as the institution notifies the Sec-
retary of the change.’’; 
(7) by striking subsection (k) and inserting the 
following: 
‘‘(k) RELIGIOUS INSTITUTION RULE.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(j), the Secretary shall allow an institution that has 
had its accreditation withdrawn, revoked, or other-
wise terminated, or has voluntarily withdrawn from 
an accreditation agency, to remain certified as an in-
stitution of higher education under section 101 and 
subpart 3 of this part for a period sufficient to allow 
such institution to obtain alternative accreditation, if 
the Secretary determines that the withdrawal, rev-
ocation, or termination— 
‘‘(A) is related to the religious mission or 
affiliation of the institution; and 
‘‘(B) is not related to the accreditation cri-
teria provided for in this section. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00481
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
482 
‘‘(2) REQUIREMENTS.—For purposes of this 
section the following shall apply: 
‘‘(A) The religious mission of an institu-
tion may be reflected in the institution’s reli-
gious tenets, beliefs, or teachings, and any poli-
cies or decisions related to such tenets, beliefs, 
or teachings (including any policies or decisions 
concerning housing, employment, student ad-
mission, continuing enrollment, graduation, cur-
riculum, or self-governance. 
‘‘(B) An agency or association’s standard 
fails to respect an institution’s religious mission 
when the institution determines that the stand-
ard induces, pressures, or coerces the institu-
tion to act contrary to, or to refrain from acting 
in support of, any aspect of its religious mis-
sion.’’; 
(8) in subsection (n)(3), by striking ‘‘distance 
education courses or programs’’ each place it ap-
pears and inserting ‘‘competency-based education 
programs’’; 
(9) in subsection (o), by inserting before the pe-
riod at the end the following: ‘‘, or with respect to 
the policies and procedures of an accreditation agen-
cy or association described in paragraph (2) or (5) 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00482
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
483 
of subsection (c) or how the agency or association 
carries out such policies and procedures’’; 
(10) by striking subsections (p) and (q); and 
(11) by adding at the end the following: 
‘‘(p) RISK-BASED
OR DIFFERENTIATED REVIEW 
PROCESSES OR PROCEDURES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law (including subsection (a)(4)(A)), an 
accrediting agency or association may establish, with 
the involvement of its membership, risk-based or dif-
ferentiated review processes or procedures for as-
sessing compliance with the accrediting agency or 
association’s standards, including policies related to 
substantive change and award of accreditation 
statuses, for institutions of higher education or pro-
grams that have demonstrated exceptional past per-
formance with respect to meeting the accrediting 
agency or association’s standards. 
‘‘(2) PROHIBITION.—Risk-based or differen-
tiated review processes or procedures shall not dis-
criminate against, or otherwise preclude, institutions 
of higher education based on institutional sector or 
category, including an institution of higher edu-
cation’s tax status. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00483
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
484 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to permit the Sec-
retary to establish any criterion that specifies, de-
fines, or prescribes an accrediting agency or associa-
tion’s risk-based or differentiated review process or 
procedure. 
‘‘(q) WAIVER.—The Secretary shall establish a proc-
ess through which an agency or association may seek to 
have a requirement of this subpart waived, if such agency 
or association— 
‘‘(1) demonstrates that such waiver is necessary 
to enable an institution of higher education or pro-
gram accredited by the agency or association to im-
plement innovative practices intended to— 
‘‘(A) reduce administrative burdens to the 
institution or program without creating costs 
for the taxpayer; or 
‘‘(B) improve the delivery of services to 
students, improve instruction or learning out-
comes, or otherwise benefit students; and 
‘‘(2) describes the terms and conditions that 
will be placed upon the program or institution to en-
sure academic integrity and quality.’’. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00484
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
485 
SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES. 
(a) 
ELIGIBILITY
AND
CERTIFICATION
PROCE-
DURES.—Section 498 (20 U.S.C. 1099c) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘For purposes of’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—For purposes of’’; 
(B) by inserting ‘‘, subject to paragraph 
(2),’’ after ‘‘determine’’; and 
(C) by adding at the end the following: 
‘‘(2) SPECIAL
RULE.—The determination of 
whether an institution of higher education is legally 
authorized to operate in a State under section 
101(a)(2) shall be based solely on that State’s 
laws.’’; 
(2) in subsection (b)(5), by striking ‘‘B or D’’ 
and inserting ‘‘E’’; 
(3) in subsection (c)— 
(A) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (6), (7), and (8), respec-
tively; 
(B) by striking the subsection designation 
and all that follows through the end of para-
graph (3) and inserting the following: 
‘‘(c) FINANCIAL RESPONSIBILITY STANDARDS.—(1) 
The Secretary shall determine whether an institution has 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00485
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
486 
the financial responsibility required by this title in accord-
ance with paragraph (2). 
‘‘(2) An institution shall be determined to be finan-
cially responsible by the Secretary, as required by this 
title, if the institution is able to provide the services de-
scribed in its official publications and statements, is able 
to provide the administrative resources necessary to com-
ply with the requirements of this title, and meets one of 
the following conditions: 
‘‘(A) Such institution has its liabilities backed 
by the full faith and credit of a State, or its equiva-
lent. 
‘‘(B) Such institution has a bond credit quality 
rating of investment grade or higher from a recog-
nized credit rating agency. 
‘‘(C) Such institution has expendable net assets 
equal to not less than one-half of the annual poten-
tial liabilities of such institution to the Secretary for 
funds under this title, including loan obligations dis-
charged pursuant to section 437, and to students for 
refunds of institutional charges, including funds 
under this title, as calculated by an independent cer-
tified public accountant in accordance with generally 
accepted auditing standards. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00486
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
487 
‘‘(D) Such institution establishes, with the sup-
port of a financial statement audited by an inde-
pendent certified public accountant in accordance 
with generally accepted auditing standards, that the 
institution has sufficient resources to ensure against 
the precipitous closure of the institution, including 
the ability to meet all of its financial obligations (in-
cluding refunds of institutional charges and repay-
ments to the Secretary for liabilities and debts in-
curred in programs administered by the Secretary). 
‘‘(E) Such institution has met criteria, pre-
scribed by the Secretary by regulation in accordance 
with paragraph (3), that— 
‘‘(i) establish ratios that demonstrate fi-
nancial responsibility in accordance with gen-
erally accepted auditing standards as described 
in paragraph (7); 
‘‘(ii) incorporate the procedures described 
in paragraph (4); 
‘‘(iii) establish consequences for failure to 
meet the criteria described in paragraph (5); 
and 
‘‘(iv) take into account any differences in 
generally accepted accounting principles, and 
the financial statements required thereunder, 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00487
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
488 
that are applicable to for-profit, public, and 
nonprofit institutions. 
‘‘(3) The criteria prescribed pursuant to paragraph 
(2)(E) shall provide that the Secretary shall— 
‘‘(A) not later than 6 months after an institu-
tion that is subject to the requirements of paragraph 
(2)(E) has submitted its annual financial statement, 
provide to such institution a notification of its pre-
liminary score under such paragraph; 
‘‘(B) provide to each such institution a descrip-
tion of the method used, and complete copies of all 
the calculations performed, to determine the institu-
tion’s score, if such institution makes a request for 
such information within 45 days after receiving the 
notice under subparagraph (A); 
‘‘(C) within 60 days of receipt by an institution 
of the information described in subparagraph (B)— 
‘‘(i) allow the institution to correct or cure 
an administrative, accounting, or recordkeeping 
error if the error is not part of a pattern of er-
rors and there is no evidence of fraud or mis-
conduct related to the error; 
‘‘(ii) if the institution demonstrates that 
the Secretary has made errors in its determina-
tion of the initial score or has used non-stand-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00488
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
489 
ard accounting practices in reaching its deter-
mination, notify the institution that its com-
posite score has been corrected; and 
‘‘(iii) take into consideration any subse-
quent change in the institution’s overall fiscal 
health that would raise the institution’s score; 
‘‘(D) maintain and preserve at all times the 
confidentiality of any review until such score is de-
termined to be final; and 
‘‘(E) make a determination regarding whether 
the institution has met the standards of financial re-
sponsibility based on an audited and certified finan-
cial statement of the institution as described in 
paragraph (7). 
‘‘(4) If the Secretary determines, after conducting an 
initial review, that the institution has not met at least one 
of the conditions described in subparagraphs (A) through 
(E) of paragraph (2) but has otherwise met the require-
ments of such paragraph— 
‘‘(A) the Secretary shall request information re-
lating to such conditions for any affiliated or parent 
organization, company, or foundation owning or 
owned by the institution; and 
‘‘(B) if such additional information dem-
onstrates that an affiliated or parent organization, 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00489
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
490 
company, or foundation owning or owned by the in-
stitution meets at least one of the conditions de-
scribe in subparagraphs (A) through (E) of para-
graph (2), the institution shall be determined to be 
financially responsible as required by this title. 
‘‘(5) The Secretary shall establish policies and proce-
dures to address an institution’s failure to meet the cri-
teria of paragraph (2) which shall include policies and pro-
cedures that— 
‘‘(A) require an institution that fails to meet 
the criteria for three consecutive years to provide to 
the Secretary a financial plan; 
‘‘(B) provide for additional oversight and cash 
monitoring restrictions, as appropriate; 
‘‘(C) allow an institution to submit to the Sec-
retary third-party financial guarantees that the Sec-
retary determines are reasonable, such as perform-
ance bonds or letters of credit payable to the Sec-
retary, except that an institution may not be re-
quired to obtain a letter of credit in order to be 
deemed financially responsible unless— 
‘‘(i) the institution has been deemed not to 
be a going concern, as determined by an inde-
pendent certified public accountant in accord-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00490
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
491 
ance with generally accepted auditing stand-
ards; 
‘‘(ii) the institution is determined by the 
Secretary to be at risk of precipitous closure 
when the full financial resources of the institu-
tion, including the value of the institution’s ex-
pendable endowment, are considered; or 
‘‘(iii) the institution is determined by the 
Secretary to be at risk of not meeting all of its 
financial obligations, including refunds of insti-
tutional charges and repayments to the Sec-
retary for liabilities and debts incurred in pro-
grams administered by the Secretary; and 
‘‘(D) provide for the removal of all require-
ments related to the institution’s failure to meet the 
criteria once the criteria are met.’’; and 
(C) in paragraph (7), as so redesignated, 
by striking ‘‘paragraphs (2) and (3)(C)’’ and 
inserting ‘‘paragraph (2)’’; 
(4) in subsection (g)(3)— 
(A) by striking ‘‘section 102(a)(1)(C)’’ and 
inserting ‘‘section 102(a)(1)’’; and 
(B) by striking ‘‘part B’’ and inserting 
‘‘part D or E’’; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00491
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
492 
(5) in subsection (h)(2), by striking ‘‘18’’ and 
inserting ‘‘36’’; 
(6) in subsection (i)(1), by striking ‘‘section 
102 (other than the requirements in subsections 
(b)(5) and (c)(3))’’ and inserting ‘‘sections 101 
(other 
than 
the 
requirements 
in 
subsections 
(b)(1)(A) and (b)(2)) and 102’’; 
(7) in subsection (j)(1), by striking ‘‘meet the 
requirements 
of 
sections 
102(b)(1)(E) 
and 
102(c)(1)(C)’’ and inserting ‘‘meet the requirements 
to be considered an institution of higher education 
under sections 101(b)(1)(A) and 101(b)(2)’’; and 
(8) in subsection (k)— 
(A) in paragraph (1), by striking ‘‘487(f)’’ 
and inserting ‘‘487(e)’’; and 
(B) in paragraph (2)(A), by striking ‘‘meet 
the requirements of sections 102(b)(1)(E) and 
102(c)(1)(C)’’ and inserting ‘‘meet the require-
ments to be considered an institution of higher 
education under sections 101(b)(1)(A) and 
101(b)(2)’’. 
(b) PROGRAM REVIEW AND DATA.—Section 498A 
(20 U.S.C. 1099c–1) is amended— 
(1) in subsection (a)(2)— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00492
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
493 
(A) by striking ‘‘part B of’’ both places it 
appears; 
(B) in subparagraph (A), by inserting be-
fore the semicolon at the end the following: ‘‘, 
or after the transition period described in sec-
tion 481B(e)(3), institutions in which 25 per-
cent or more of the educational programs have 
a loan repayment rate (defined in section 
481B(c)) for the most recent fiscal year of less 
than 50 percent’’; 
(C) in subparagraph (B), by inserting be-
fore the semicolon at the end the following: ‘‘, 
except that this subparagraph shall not apply 
after the transition period described in section 
481B(e)(3)’’; and 
(D) in subparagraph (C)— 
(i) by inserting ‘‘Federal ONE Loan 
volume,’’ after ‘‘Stafford/Ford Loan vol-
ume’’; and 
(ii) by inserting ‘‘Federal ONE Loan 
program,’’ after ‘‘Stafford/Ford Loan pro-
gram’’; 
(2) in subsection (b)— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00493
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
494 
(A) 
by 
redesignating 
paragraphs 
(3) 
through (8) as paragraphs (4) through (9), re-
spectively; 
(B) by inserting after paragraph (2) the 
following new paragraph: 
‘‘(3) as practicable, provide a written expla-
nation to the institution of higher education detail-
ing the Secretary’s reasons for initiating the pro-
gram review which, if applicable, shall include ref-
erences to specific criteria under subsection (a)(2);’’; 
and 
(C) in paragraph (9), as so redesignated— 
(i) by striking ‘‘paragraphs (6) and 
(7)’’ and inserting ‘‘paragraphs (7) and 
(8)’’; and 
(ii) by striking ‘‘paragraph (5)’’ and 
inserting ‘‘paragraph (6)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(f) TIME LIMIT
ON PROGRAM REVIEW ACTIVI-
TIES.—In conducting, responding to, and concluding pro-
gram review activities, the Secretary shall— 
‘‘(1) provide to the institution the initial report 
finding not later than 90 days after concluding an 
initial site visit; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00494
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
495 
‘‘(2) upon each receipt of an institution’s re-
sponse during a program review inquiry, respond in 
a substantive manner within 90 days; 
‘‘(3) upon each receipt of an institution’s writ-
ten response to a draft final program review report, 
provide the final program review report and accom-
panying enforcement actions, if any, within 90 days; 
and 
‘‘(4) conclude the entire program review process 
not later than 2 years after the initiation of a pro-
gram review, unless the Secretary determines that 
such a review is sufficiently complex and cannot rea-
sonably be concluded before the expiration of such 2- 
year period, in which case the Secretary shall 
promptly notify the institution of the reasons for 
such delay and provide an anticipated date for con-
clusion of the review.’’. 
(c) REVIEW OF REGULATIONS.—Section 498B(b) (20 
U.S.C. 1099c–2(b)) is amended by striking ‘‘section 
102(a)(1)(C)’’ and inserting ‘‘102(a)(1)’’. 
TITLE V—DEVELOPING 
INSTITUTIONS 
SEC. 501. HISPANIC-SERVING INSTITUTIONS. 
Part A of title V (20 U.S.C. 1101 et seq.) is amend-
ed— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00495
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
496 
(1) in section 502(a)— 
(A) in paragraph (1), by striking ‘‘institu-
tion for instruction’’ and inserting ‘‘institution 
of higher education for instruction’’; 
(B) in paragraph (2)(A)— 
(i) by redesignating clauses (v) and 
(vi) as clauses (vi) and (v), respectively; 
(ii) in clause (v) (as so redesignated), 
by inserting ‘‘(as defined in section 
103(20)(A))’’ after ‘‘State’’; and 
(iii) in clause (vi) (as so redesig-
nated), by striking ‘‘and’’ at the end; and 
(C) in paragraph (2)— 
(i) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; 
and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) except as provided in section 522(b), 
an institution that has a completion rate of at 
least 25 percent that is calculated by— 
‘‘(i) counting a student as completed 
if that student graduated within 150 per-
cent of the normal time for completion; or 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00496
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
497 
‘‘(ii) counting a student as completed 
if that student enrolled into another pro-
gram at an institution for which the pre-
vious program provided substantial prepa-
ration within 150 percent of normal time 
for completion.’’; 
(2) in section 503— 
(A) in subsection (b)— 
(i) in paragraph (5), by striking 
‘‘counseling, and’’ and inserting ‘‘coun-
seling, advising, and’’; 
(ii) in paragraph (7), by striking 
‘‘funds management’’ and inserting ‘‘funds 
and administrative management’’; 
(iii) in paragraph (11), by striking 
‘‘Creating’’ and all that follows through 
‘‘technologies,’’ and inserting ‘‘Innovative 
learning models and creating or improving 
facilities for Internet or other innovative 
technologies,’’; and 
(iv) by redesignating paragraph (16) 
as paragraph (20) and inserting after 
paragraph (15) the following: 
‘‘(16) The development, coordination, imple-
mentation, or improvement of career and technical 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00497
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
498 
education programs (as defined in section 135 of the 
Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2355)). 
‘‘(17) Alignment and integration of career and 
technical education programs with programs of 
study leading to a bachelor’s degree, graduate de-
gree, or professional degree. 
‘‘(18) Developing or expanding access to dual 
or concurrent enrollment programs and early college 
high school programs. 
‘‘(19) Pay for success initiatives that improve 
time to completion and increase graduation rates.’’; 
and 
(B) in subsection (c), by adding at the end 
the following: 
‘‘(4) SCHOLARSHIP.—An institution that uses 
grant funds provided under this part to establish or 
increase an endowment fund may use the income 
from such endowment fund to provide scholarships 
to students for the purposes of attending such insti-
tution, 
subject 
to 
the 
limitation 
in 
section 
331(c)(3)(B)(i).’’; 
(3) in section 504, by striking subsection (a) 
and inserting the following: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00498
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
499 
‘‘(a) AWARD PERIOD.—The Secretary may award a 
grant to a Hispanic-serving institution under this part for 
a period of 5 years. Any funds awarded under this part 
that are not expended or used, before the date that is 10 
years after the date on which the grant was awarded, for 
the purposes for which the funds were paid shall be repaid 
to the Treasury.’’; and 
(4) in section 505, by striking ‘‘this title’’ each 
place such term appears and inserting ‘‘this part’’. 
SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNI-
TIES FOR HISPANIC AMERICANS. 
Part B of title V (20 U.S.C. 1102 et seq.) is amend-
ed— 
(1) in section 513— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) The activities described in (1) through (4), 
(11), and (19) of section 503(b).’’; 
(B) by striking paragraphs (2) and (3); 
and 
(C) 
by 
redesignating 
paragraphs 
(4) 
through (8) as paragraphs (2) through (6), re-
spectively; and 
(D) in paragraph (4) (as so redesignated), 
by striking ‘‘Creating’’ and all that follows 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00499
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
500 
through ‘‘technologies,’’ and inserting ‘‘Innova-
tive learning models and creating or improving 
facilities for Internet or other innovative tech-
nologies,’’; and 
(2) in section 514— 
(A) by striking subsection (b) and insert-
ing the following: 
‘‘(b) DURATION.—The Secretary may award a grant 
to a Hispanic-serving institution under this part for a pe-
riod of 5 years. Any funds awarded under this part that 
are not expended or used for the purposes for which the 
funds were paid within 10 years following the date on 
which the grant was awarded shall be repaid to the Treas-
ury.’’; and 
(B) by adding at the end the following: 
‘‘(d) SPECIAL RULE.—No Hispanic-serving institu-
tion that is eligible for and receives funds under this part 
may receive funds under part A or B of title III during 
the period for which funds under this part are awarded.’’. 
SEC. 503. GENERAL PROVISIONS. 
Part C of title V (20 U.S.C. 1103 et seq.) is amend-
ed— 
(1) in section 521(c)(7)— 
(A) by striking subparagraph (C); 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00500
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
501 
(B) by redesignating subparagraphs (D) 
and (E) as subparagraphs (C) and (D), respec-
tively; and 
(C) in subparagraph (D), as so redesig-
nated, by striking ‘‘subparagraph (D)’’ and in-
serting ‘‘subparagraph (C)’’; 
(2) in section 522(b)— 
(A) in the subsection heading, by inserting 
‘‘; 
COMPLETION
RATES’’ 
after 
‘‘EXPENDI-
TURES’’; 
(B) in paragraph (1), by inserting ‘‘or 
502(a)(2)(C)’’ after ‘‘502(a)(2)(A)(ii)’’; and 
(C) in paragraph (2)— 
(i) in the paragraph heading, by in-
serting ‘‘AND
COMPLETION
RATES’’ after 
‘‘EXPENDITURES’’; 
(ii) in the matter preceding subpara-
graph (A), by inserting ‘‘or 502(a)(2)(C)’’ 
after ‘‘502(a)(2)(A)(ii)’’; and 
(iii) in subparagraph (A), by inserting 
‘‘or 
section 
502(a)(2)(C)’’ 
after 
‘‘502(a)(2)(A)’’; 
(3) in section 524(c), by striking ‘‘section 505’’ 
and inserting ‘‘section 504’’; and 
(4) in section 528— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00501
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
502 
(A) in subsection (a), by striking ‘‘parts A 
and C’’ and all that follows through the period 
at the end and inserting ‘‘parts A and C, 
$107,795,000 for each of fiscal years 2019 
through 2024.’’; and 
(B) in subsection (b), by striking ‘‘part B’’ 
and all that follows through the period at the 
end and inserting ‘‘part B, $9,671,000 for each 
of fiscal years 2019 through 2024.’’. 
TITLE VI—INTERNATIONAL 
EDUCATION PROGRAMS 
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD-
IES. 
(a) GRADUATE AND UNDERGRADUATE LANGUAGE 
AND AREA CENTERS AND PROGRAMS.—Section 602 (20 
U.S.C. 1122) is amended— 
(1) in subsection (a)(4)(F), by inserting ‘‘(C),’’ 
after ‘‘(B),’’; and 
(2) in subsection (e)— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively, 
and realigning such subparagraphs so as to be 
indented 4 ems from the left margin; 
(B) by striking ‘‘(e) APPLICATION.—Each 
institution’’ and inserting the following: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00502
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
503 
‘‘(e) APPLICATION.— 
‘‘(1) SUBMISSION; CONTENTS.—Each institu-
tion’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) APPROVAL.—The Secretary may approve 
an application for a grant if an institution, in its ap-
plication, provides adequate assurances that it will 
comply with paragraph (1)(A). The Secretary shall 
use the requirement of paragraph (1)(A) as part of 
the application evaluation, review, and approval 
process when determining grant recipients for initial 
funding and continuation awards.’’. 
(b) DISCONTINUATION
OF CERTAIN PROGRAMS.— 
Part A of title VI (20 U.S.C. 1121 et seq.) is amended— 
(1) by striking section 604; 
(2) by striking section 606; 
(3) by striking section 609; and 
(4) by striking section 610. 
(c) CONFORMING AMENDMENT.—Part A of title VI 
(20 U.S.C. 1121 et seq.) is further amended by redesig-
nating sections 605, 607, and 608 as sections 604, 605, 
and 606, respectively. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00503
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
504 
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO-
GRAMS. 
(a) CENTERS FOR INTERNATIONAL BUSINESS EDU-
CATION.—Section 612 (20 U.S.C. 1130–1) is amended— 
(1) in subsection (f)(3), by inserting ‘‘and a 
wide range of views’’ after ‘‘diverse perspectives’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) APPROVAL.—The Secretary may approve an ap-
plication for a grant if an institution, in its application, 
provides adequate assurances that it will comply with sub-
section (f)(3). The Secretary shall use the requirement of 
subsection (f)(3) as part of the application evaluation, re-
view, and approval process when determining grant recipi-
ents for initial funding and continuation awards.’’. 
(b) DISCONTINUATION
OF CERTAIN PROGRAMS.— 
Part B of title VI (20 U.S.C. 1130 et seq.) is amended 
by striking sections 613 and 614. 
SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTI-
TUTE FOR INTERNATIONAL PUBLIC POLICY. 
Part C of title VI (20 U.S.C. 1131 et seq.) is re-
pealed. 
SEC. 604. GENERAL PROVISIONS. 
(a) DEFINITIONS.—Section 631(a) (20 U.S.C. 
1132(a)) is amended— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00504
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
505 
(1) by striking paragraphs (5) and (9); 
(2) in paragraph (8), by inserting ‘‘and’’ after 
the semicolon at the end; and 
(3) by redesignating paragraphs (6), (7), (8), 
and (10) as paragraphs (5), (6), (7), and (8), re-
spectively. 
(b) SPECIAL RULE.—Section 632(2) (20 U.S.C. 
1132–1(2)) is amended by inserting ‘‘substantial’’ before 
‘‘need’’. 
(c) REPORTS.—Section 636 (20 U.S.C. 1132–5) is 
amended— 
(1) by inserting ‘‘(a) BIENNIAL REPORT
ON 
AREAS OF NATIONAL NEED.—’’ before ‘‘The Sec-
retary’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) ANNUAL REPORT ON COMPLIANCE WITH DI-
VERSE PERSPECTIVES AND A WIDE RANGE OF VIEWS RE-
QUIREMENT.—Not later than 180 days after the date of 
the enactment of this subsection, and annually thereafter, 
the Secretary shall submit to the authorizing committees 
a report that identifies the efforts taken to ensure recipi-
ents’ compliance with the requirements under this title re-
lating to the ‘diverse perspectives and a wide range of 
views’ requirement, including any technical assistance the 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00505
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
506 
Department has provided, any regulatory guidance the 
Department has issued, and any monitoring the Depart-
ment has conducted. Such report shall be made available 
to the public.’’. 
(d) REPEAL OF SCIENCE AND TECHNOLOGY AD-
VANCED FOREIGN LANGUAGE EDUCATION GRANT PRO-
GRAM.—Section 637 (20 U.S.C. 1132–6) is repealed. 
(e) REPORTING BY INSTITUTIONS.—Section 638(b) 
(20 U.S.C. 1132–7(b)) is amended to read as follows: 
‘‘(b) DATA REQUIRED.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (5), the Secretary shall require an institution 
of higher education referred to in subsection (a) to 
file a disclosure report under paragraph (2) with the 
Secretary on January 31 or July 31, whichever is 
sooner, with respect to the date on which such insti-
tution received a contribution— 
‘‘(A) less than 7 months from such date; 
and 
‘‘(B) greater than 30 days from such date. 
‘‘(2) CONTENTS OF REPORT.—Each report to 
the Secretary required by this section shall contain 
the following information with respect to the institu-
tion of higher education filing the report: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00506
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
507 
‘‘(A) For gifts received from, or contracts 
entered into with a foreign source other than a 
foreign government, the following information: 
‘‘(i) The aggregate dollar amount of 
such gifts and contracts attributable to 
each country, including the fair market 
value of the services of staff members, 
textbooks, and other in-kind gifts. 
‘‘(ii) The legal name of the entity pro-
viding any such gift or contract. 
‘‘(iii) The country to which the gift is 
attributable. 
‘‘(B) For gifts received from, or contracts 
entered into with, a foreign government, the ag-
gregate dollar amount of such gifts and con-
tracts received from each foreign government 
and the legal name of the entity providing any 
such gift or contract. 
‘‘(C) In the case of an institution of higher 
education that is owned or controlled by a for-
eign source— 
‘‘(i) the identity of the foreign source; 
‘‘(ii) the date on which the foreign 
source assumed ownership or control of the 
institution; and 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00507
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
508 
‘‘(iii) any changes in program or 
structure resulting from the change in 
ownership or control. 
‘‘(3) 
ADDITIONAL
DISCLOSURES
FOR
RE-
STRICTED
AND
CONDITIONAL
GIFTS.—Notwith-
standing paragraph (1), when an institution of high-
er education receives a restricted or conditional gift 
or contract from a foreign source, the institution 
shall disclose the following: 
‘‘(A) In the case of gifts received from, or 
contracts entered into with, a foreign source 
other than a foreign government, the amount, 
the date, and a description of such conditions 
or restrictions. 
‘‘(B) The country to which the gift is at-
tributable. 
‘‘(C) In the case of gifts received from, or 
contracts entered into with, a foreign govern-
ment, the amount, the date, a description of 
such conditions or restrictions, and the name of 
the foreign government. 
‘‘(4) ATTRIBUTION OF GIFTS.—For purposes of 
this subsection, the country to which a gift is attrib-
utable is— 
‘‘(A) the country of citizenship; or 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00508
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
509 
‘‘(B) if the information described in sub-
paragraph (A) is not known— 
‘‘(i) the principal residence for a for-
eign source who is a natural person; or 
‘‘(ii) the principal place of business 
and country of incorporation for a foreign 
source that is a legal entity. 
‘‘(5) RELATION
TO
OTHER
REPORTING
RE-
QUIREMENTS.— 
‘‘(A) STATE REQUIREMENTS.—If an insti-
tution described under subsection (a) is located 
within a State that has enacted requirements 
for public disclosure of gifts from, or contracts 
with, a foreign source that are substantially 
similar to the requirements of this section, as 
determined by the Secretary, a copy of the dis-
closure report filed with the State may be filed 
with the Secretary in lieu of a report required 
under paragraph (1). 
‘‘(B) ASSURANCES.—With respect to an 
institution that submits a copy of a disclosure 
report pursuant to subparagraph (A), the State 
in which such institution is located shall provide 
to the Secretary such assurances as the Sec-
retary may require to establish that the institu-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00509
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
510 
tion has met the requirements for public disclo-
sure under the laws of such State. 
‘‘(C) USE
OF
OTHER
FEDERAL
RE-
PORTS.—If an institution receives a gift from, 
or enters into a contract with, a foreign source, 
where any other Federal law or regulation re-
quires a report containing requirements sub-
stantially similar to the requirements under this 
section, as determined by the Secretary, a copy 
of the report may be filed with the Secretary in 
lieu of a report required under subsection (b). 
‘‘(6) PUBLIC INSPECTION.—A disclosure report 
required by this section shall be— 
‘‘(A) available as public records open to in-
spection and copying during business hours; 
‘‘(B) available electronically; and 
‘‘(C) made available under subparagraphs 
(A) and (B) not later than 30 days after the 
Secretary receives such report. 
‘‘(7) ENFORCEMENT.— 
‘‘(A) COMPEL COMPLIANCE.—Whenever it 
appears that an institution has failed to comply 
with the requirements of this section, including 
any rule or regulation promulgated under this 
section, a civil action may be brought by the At-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00510
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
511 
torney General, at the request of the Secretary, 
in an appropriate district court of the United 
States, or the appropriate United States court 
of any territory or other place subject to the ju-
risdiction of the United States, to request such 
court to compel compliance with the require-
ments of this section. 
‘‘(B) COSTS.—For knowing or willful fail-
ure to comply with the requirements of this sec-
tion, including any rule or regulation promul-
gated thereunder, an institution shall pay to the 
Treasury of the United States the full costs to 
the United States of obtaining compliance, in-
cluding all associated costs of investigation and 
enforcement. 
‘‘(8) DEFINITIONS.—In this section: 
‘‘(A) CONTRACT.—The term ‘contract’ 
means any agreement for the acquisition by 
purchase, lease, gift, or barter of property or 
services by the foreign source, for the direct 
benefit or use of either of the parties. 
‘‘(B) FOREIGN
SOURCE.—The term ‘for-
eign source’ means— 
‘‘(i) a foreign government, including 
an agency of a foreign government; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00511
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
512 
‘‘(ii) a legal entity, governmental or 
otherwise, created solely under the laws of 
a foreign state or states; 
‘‘(iii) an individual who is not a cit-
izen or a national of the United States or 
a trust territory or protectorate thereof; 
and 
‘‘(iv) an agent, including a subsidiary 
or affiliate of a foreign legal entity, acting 
on behalf of a foreign source. 
‘‘(C) GIFT.—The term ‘gift’ means any 
gift of money, property, human resources, or 
payment of any staff. 
‘‘(D) RESTRICTED OR CONDITIONAL.—The 
term ‘restricted or conditional’, with respect to 
an endowment, gift, grant, contract, award, 
present, or property of any kind means includ-
ing as a condition on such endowment, gift, 
grant, contract, award, present, or property 
provisions regarding— 
‘‘(i) the employment, assignment, or 
termination of faculty; 
‘‘(ii) the establishment of depart-
ments, centers, research or lecture pro-
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00512
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
513 
grams, institutes, instructional programs, 
or new faculty positions; 
‘‘(iii) the selection or admission of 
students; or 
‘‘(iv) the award of grants, loans, 
scholarships, fellowships, or other forms of 
financial aid restricted to students of a 
specified country, religion, sex, ethnic ori-
gin, or political opinion.’’. 
(f) REDESIGNATIONS.—Part D of title VI (20 U.S.C. 
1132 et seq.) is amended— 
(1) by redesignating such part as part C; and 
(2) by redesignating sections 631, 632, 633, 
634, 635, 636, and 638 as sections 621, 622, 623, 
624, 625, 626, and 627, respectively. 
(g) CONTINUATION AWARDS.—Part C of title VI (20 
U.S.C. 1131 et seq.), as so redesignated by subsection 
(f)(1) of this section, is amended by adding at the end 
the following new sections: 
‘‘SEC. 628. CONTINUATION AWARDS. 
‘‘The Secretary shall make continuation awards 
under this title for the second and succeeding years of a 
grant only after determining that the recipient is making 
satisfactory progress in carrying out the grant. 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00513
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
520 
(vii) by redesignating paragraph (8) 
as paragraph (7); 
(F) in subsection (e), by striking ‘‘An in-
stitution of higher education (or consortium)’’ 
and inserting ‘‘An eligible applicant’’; 
(G) in subsection (f), by striking ‘‘Not 
later than five years after the date of the first 
grant awarded under this section’’ and inserting 
‘‘Not less often than once every 5 years’’; and 
(H) by adding at the end the following new 
subsection: 
‘‘(g) DEFINITION.—For purposes of this subpart, the 
term ‘eligible applicant’ means an institution of higher 
education or a consortium of institutions of higher edu-
cation.’’. 
(3) REDESIGNATIONS.—Sections 768 and 769 
(20 U.S.C. 1140i) are redesignated as sections 733 
and 735, respectively. 
(4) COORDINATING
CENTER.—Subpart 1 of 
part D of title VII, as so redesignated by subsection 
(a)(1), is amended by inserting after section 733 (as 
so redesignated by paragraph (3)) the following new 
section: 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00520
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
521 
‘‘SEC. 734. COORDINATING CENTER. 
‘‘(a) PURPOSE.—It is the purpose of this section to 
provide technical assistance and information on best and 
promising practices to eligible applicants awarded grants 
under section 732. 
‘‘(b) COORDINATING CENTER.— 
‘‘(1) DEFINITION
OF
ELIGIBLE
ENTITY.—In 
this section, the term ‘eligible entity’ means an enti-
ty, or a partnership of entities, that has dem-
onstrated expertise in the fields of— 
‘‘(A) higher education; 
‘‘(B) the education of students with intel-
lectual disabilities; 
‘‘(C) the development of comprehensive 
transition and postsecondary programs for stu-
dents with intellectual disabilities; and 
‘‘(D) evaluation and technical assistance. 
‘‘(2) IN
GENERAL.—From amounts appro-
priated under section 735, the Secretary shall enter 
into a cooperative agreement, on a competitive basis, 
with an eligible entity for the purpose of establishing 
a coordinating center for institutions of higher edu-
cation that offer inclusive comprehensive transition 
and postsecondary programs for students with intel-
lectual disabilities, including eligible applicants re-
ceiving grants under section 732, to provide— 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00521
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS
522 
‘‘(A) recommendations related to the devel-
opment of standards for such programs; 
‘‘(B) technical assistance for such pro-
grams; and 
‘‘(C) evaluations for such programs. 
‘‘(3) ADMINISTRATION.—The program under 
this section shall be administered by the office in the 
Department that administers other postsecondary 
education programs. 
‘‘(4) DURATION.—A cooperative agreement en-
tered into pursuant to this section shall have a term 
of 5 years. 
‘‘(5) REQUIREMENTS OF COOPERATIVE AGREE-
MENT.—The cooperative agreement entered into 
pursuant to this section shall provide that the eligi-
ble entity entering into such agreement shall estab-
lish and maintain a coordinating center that shall— 
‘‘(A) serve as the technical assistance enti-
ty for all comprehensive transition and postsec-
ondary programs for students with intellectual 
disabilities; 
‘‘(B) provide technical assistance regarding 
the development, evaluation, and continuous im-
provement of such programs; 
VerDate Sep 11 2014 
02:45 Dec 06, 2017
Jkt 079200
PO 00000
Frm 00522
Fmt 6652
Sfmt 6201
E:\BILLS\H4508.IH
H4508
dlhill on DSK3GLQ082PROD with BILLS