I 
113TH CONGRESS 
2D SESSION 
H. R. 4860 
To clarify that a closure of a branch or campus of an institution of higher 
education may qualify a borrower for loan discharge under the Higher 
Education Act of 1965, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2014 
Ms. HAHN introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To clarify that a closure of a branch or campus of an 
institution of higher education may qualify a borrower 
for loan discharge under the Higher Education Act of 
1965, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting Students 
from Failing Institutions Act’’. 
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SEC. 2. CLOSURE OF A CAMPUS OR BRANCH OF AN INSTI-
TUTION OF HIGHER EDUCATION. 
Section 437(c) of the Higher Education Act of 1965 
(20 U.S.C. 1087(c)) is amended— 
(1) in paragraph (1), by inserting ‘‘or the clo-
sure of a campus or branch of the institution,’’ after 
‘‘closure of the institution’’; 
(2) in paragraph (3)— 
(A) by inserting ‘‘or the closing of a cam-
pus or branch of the institution’’ after ‘‘closing 
of the institution’’; and 
(B) by inserting before the period the fol-
lowing: ‘‘and shall not count towards the stu-
dent’s duration limit for Federal Pell Grants 
under section 401(c)(5)’’; and 
(3) by adding at the end the following: 
‘‘(6) CAMPUS OR BRANCH CLOSURE.—A bor-
rower who withdraws from an institution not more 
than 120 days before the date of closure of the cam-
pus or branch of the institution in which the bor-
rower was enrolled and such closure would have pre-
vented the borrower from completing the program in 
which the borrower was enrolled shall, for purposes 
of discharging such borrower’s loans under para-
graph (1) and determining the borrower’s eligibility 
for additional assistance under this title in accord-
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ance with paragraphs (3) and (4), be considered to 
be a student who is unable to complete the program 
in which such student is enrolled due to the closure 
of the campus or branch of the institution. 
‘‘(7) FEDERAL PELL GRANTS.—In a case of a 
borrower that receives a Federal Pell Grant under 
subpart 1 of part A of this title for an academic 
year for enrollment in a program at a campus or 
branch of an institution and such campus or branch 
closes, even if for purposes of paragraph (1) the bor-
rower is considered to be able to complete the pro-
gram in which such borrower is enrolled, the bor-
rower may use the remaining amount of the Federal 
Pell Grant for such academic year at another insti-
tution. 
‘‘(8) DEFINITION.—For purposes of this sub-
section, the terms ‘campus’ and ‘branch’ include the 
term ‘branch campus’ as defined in section 600.2 of 
title 34, Code of Federal Regulations (or a successor 
regulation).’’. 
Æ 
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