TITLE I—ACCREDITATION 
REFORM 
SEC. 101. ACCREDITATION REFORM. 
(a) DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—Section 102(a)(1) of the Higher Education Act 
of 1965 (20 U.S.C. 1002(a)(1)) is amended— 
(1) by redesignating subparagraphs (B) and 
(C) as subparagraphs (C) and (D), respectively; and 
(2) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) if accredited by an authorized accred-
itation authority in a State that has an alter-
native accreditation agreement with the Sec-
retary, as described in section 498C— 
‘‘(i) an institution that provides post-
secondary education; 
‘‘(ii) a postsecondary apprenticeship 
program; or 
‘‘(iii) 
a 
postsecondary 
education 
course or program provided by an institu-
tion of postsecondary education, a non-
profit organization, or a for-profit organi-
zation or business;’’. 
(b) STATE ALTERNATIVE ACCREDITATION.—Part H 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 
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1099a et seq.) is amended by adding at the end the fol-
lowing: 
‘‘Subpart 4—State Alternative Accreditation 
‘‘SEC. 498C. STATE ALTERNATIVE ACCREDITATION. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, a State may establish an alternative accredi-
tation system for the purpose of establishing institutions 
that provide postsecondary education and postsecondary 
education courses or programs as eligible for funding 
under title IV if the State submits a plan to the Secretary 
for the establishment of the alternative accreditation sys-
tem. Such institutions, courses, or programs may in-
clude— 
‘‘(1) institutions that provide postsecondary 
education that culminates in a certification, creden-
tial, or degree; 
‘‘(2) postsecondary apprenticeship programs 
that culminate in a certification, credential, or de-
gree; 
‘‘(3) any other postsecondary education course 
or program offered at an institution of postsec-
ondary education, a nonprofit organization, or a for- 
profit organization or business, that culminates in a 
certification, credential, or degree; and 
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‘‘(4) any of the entities described in paragraphs 
(1) through (3) that do not award a postsecondary 
certification, credential, or degree, provided that 
such entity provides credit that will be accepted to-
ward a postsecondary certification, credential, or de-
gree at one or more of the entities described in para-
graphs (1) through (3). 
‘‘(b) 
ALTERNATIVE
ACCREDITATION
NOTIFICA-
TION.—The alternative accreditation plan described in 
subsection (a) shall include the following: 
‘‘(1) The State’s plan for designating one or 
more authorized accrediting entities within the 
State, such as the State Department of Education, 
another State agency, an industry-specific accred-
iting agency, or another entity, and an explanation 
of the process through which the State will select 
such authorized accrediting entities. 
‘‘(2) The standards or criteria that an institu-
tion that provides postsecondary education and a 
postsecondary education course or program must 
meet in order to— 
‘‘(A) receive an initial accreditation as part 
of the alternative accreditation system; and 
‘‘(B) maintain such accreditation. 
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‘‘(3) A description of the appeals process 
through which an institution that provides postsec-
ondary education or a postsecondary education 
course or program may appeal to an authorized ac-
crediting entity if such institution, course, or pro-
gram is denied accreditation under the State alter-
native accreditation system. 
‘‘(4) Any State policy regarding public accessi-
bility to certain information relating to institutions 
that provide postsecondary education and postsec-
ondary education courses and programs accredited 
under the State alternative accreditation system, in-
cluding— 
‘‘(A) the information described in sub-
section (e)(1); and 
‘‘(B) information about the rates of job 
placement for individuals that have graduated 
from an institution or completed a course or 
program that is accredited under the State al-
ternative accreditation system, if available. 
‘‘(5) An assurance by the State that under the 
State alternative accreditation system, only institu-
tions that provide postsecondary education and post-
secondary education courses or programs that pro-
vide a postsecondary certification, credential, or de-
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gree, or credits toward a postsecondary certification, 
credential, or degree (as defined by the State in ac-
cordance with paragraph (6)) will be accredited. 
‘‘(6) The State’s definition of a postsecondary 
certification, credential, or degree, as such term ap-
plies to the requirement described in paragraph (5). 
‘‘(7) A description of the agreements that the 
State will enter into with institutions that provide 
postsecondary education and postsecondary edu-
cation courses or programs that are accredited 
under the alternative accreditation system for pur-
poses of accreditation regarding requirements for in-
structional time, in lieu of the requirements de-
scribed under section 481(a)(2). 
‘‘(8) A description of the agreements that the 
State will enter into with institutions that provide 
postsecondary education and postsecondary edu-
cation courses or programs that are accredited 
under the alternative accreditation system regarding 
requirements for credit hours or clock hours, or 
other measures of student learning, in lieu of the re-
quirements described under section 481(b). 
‘‘(c) REVIEW AND APPROVAL.—Not later than 30 
days after the Secretary receives a plan from a State re-
garding an alternative accreditation system, the Secretary 
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shall submit to the State and Congress, and make publicly 
available, a response to the State’s plan. The Secretary 
shall approve the plan and allow the State to establish the 
alternative accreditation system if the plan meets the re-
quirements described in subsection (b). 
‘‘(d) TIME LIMIT.—Each plan approved under sub-
section (c) shall allow a State to carry out an alternative 
accreditation system in the State for a period of 5 years. 
‘‘(e) REPORTING REQUIREMENTS.—States that es-
tablish an alternative accreditation system shall submit a 
report to the Secretary every 3 years following the imple-
mentation of the alternative accreditation system. The re-
port shall include— 
‘‘(1) in the case of a postsecondary education 
course or program that is accredited through the 
State alternative accreditation system— 
‘‘(A) the number and percentage of stu-
dents who successfully complete each such post-
secondary education course or program; and 
‘‘(B) for postsecondary education courses 
or programs that lead to a certification, creden-
tial, or degree, the number of students in such 
course or program; and 
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‘‘(2) in the case of an institution that provides 
postsecondary education that is accredited through 
the State alternative accreditation system— 
‘‘(A) the number and percentage of stu-
dents who successfully obtain a postsecondary 
certification, credential, or degree from such in-
stitution; and 
‘‘(B) the number and percentage of stu-
dents who do not successfully obtain a postsec-
ondary certification, credential, or degree from 
such institution but do obtain credit from such 
institution toward a postsecondary degree, cre-
dential, or certification; and 
‘‘(3) a description of any requirements for 
third-party verification of information contained in 
the report.’’. 
(c) TITLE IV ELIGIBILITY REQUIREMENTS.—Part G 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 
493E. 
STATE 
ACCREDITED 
INSTITUTIONS, 
PRO-
GRAMS, OR COURSES. 
‘‘Notwithstanding any other provision of law, an in-
stitution, program, or course that is eligible for funds 
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alternative format, on an annual basis, the informa-
tion described in paragraphs (2) and (3). To the ex-
tent that such data is available, an institution may 
use data that the institution is already collecting in 
accordance with other Federal requirements. 
‘‘(2) INFORMATION.—Each institution of higher 
education described in paragraph (1) shall publish, 
with respect to the institution as a whole and with 
respect to each program of study offered by the in-
stitution, the following information for the most re-
cent fiscal year for which the information is avail-
able: 
‘‘(A) For each of the following, the per-
centage and number of students enrolled at the 
institution or in the program of study, as appli-
cable, who receive the following: 
‘‘(i) Federal grant aid, including Fed-
eral Pell Grants under subpart 1 of part 
A, Federal Supplemental Educational Op-
portunity Grants under subpart 3 of part 
A, or any other Federal postsecondary edu-
cation grant aid or subsidy. 
‘‘(ii) Federal student loans, including 
Federal loans under part D. 
‘‘(iii) State grant aid. 
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‘‘(iv) Institutional grants. 
‘‘(v) A student loan from a State. 
‘‘(B) Student body enrollment status, in-
cluding as a— 
‘‘(i) first-time, full-time student; 
‘‘(ii) first-time, part-time student; 
‘‘(iii) non-first-time, full-time student; 
and 
‘‘(iv) non-first-time, part-time student. 
‘‘(C) Information about students that in-
cludes the following: 
‘‘(i) The percentage of students who 
do not complete the program of study the 
student initially started upon enrollment. 
‘‘(ii) The percentage of students who 
transfer. 
‘‘(iii) The percentage of students who 
complete the program of study the student 
initially started upon enrollment. 
‘‘(iv) The average length of time for a 
student to complete the program of study. 
‘‘(v) The percentage of students who 
continue on to higher levels of education. 
‘‘(vi) The percentage of former stu-
dents who received financial aid who are 
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employed at 2, 4, and 6 years after grad-
uating, disaggregated by program of study. 
‘‘(vii) The median earnings of former 
students who earned a degree or credential 
and received financial aid on the date that 
is 10 years after the date the students first 
enrolled in a program of study at the insti-
tution, disaggregated by program of study. 
‘‘(viii) The median earnings of former 
students who received financial aid on the 
date that is 10 years after the date the 
students first enrolled in a program of 
study at the institution, disaggregated by 
program of study. 
‘‘(3) PUBLICATION OF DEFAULT AND NON-RE-
PAYMENT RATES.—In addition to the information 
described in paragraph (2), each institution of high-
er education described in paragraph (1) shall pub-
lish, with respect to the institution as a whole and 
with respect to each program of study offered by the 
institution, the following information for the most 
recent fiscal year for which the information is avail-
able: 
‘‘(A) The average amount of total Federal 
student loan debt accrued upon graduation. 
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‘‘(B) The average amount of total Federal 
student loan debt accrued by students who 
leave the institution without having graduated. 
‘‘(C) Federal student loan default rate. 
‘‘(D) Federal student loan non-repayment 
rate. 
‘‘(E) Default and non-repayment rate, in-
cluding as a— 
‘‘(i) first-time, full-time student; 
‘‘(ii) first-time, part-time student; 
‘‘(iii) non-first-time, full-time student; 
and 
‘‘(iv) non-first-time, part-time student. 
‘‘(F) Default and non-repayment rate, of— 
‘‘(i) students who complete a program 
of study; 
‘‘(ii) students who transfer; and 
‘‘(iii) students who do not complete a 
program of study. 
‘‘(b) PRIVACY.— 
‘‘(1) COMPLIANCE WITH FERPA.—In carrying 
out this section, an institution of higher education 
and any personnel of the institution shall not share 
any personally identifiable information and shall act 
in accordance with section 444 of the General Edu-
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cation Provisions Act (20 U.S.C. 1232g, commonly 
known as the ‘Family Educational Rights and Pri-
vacy Act of 1974’). 
‘‘(2) PROHIBITION ON USE OF INFORMATION.— 
Information published pursuant to this section shall 
not be used by a Federal employee, agency, or offi-
cer, or an institution of higher education to take ac-
tion against an individual. 
‘‘(3) PENALTIES.—The Secretary shall establish 
penalties for a violation of paragraph (1) or (2) that 
includes both a monetary fine and up to 5 years in 
prison. 
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to authorize or permit the Sec-
retary or any employee or contractor of the Department 
to mandate, direct, or control the selection of practices or 
curriculum by an institution of higher education.’’. 
(b) GAO REPORT.— 
(1) STUDY.—The Comptroller General of the 
United States shall conduct a study that compiles all 
the institutional publication of information pursuant 
to section 493E of the Higher Education Act of 
1965, as added by subsection (a) of this Act. 
(2) REPORT.—Not later than October 1 of the 
fourth fiscal year after the date of enactment of this 
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Act, the Comptroller General of the United States 
shall submit a report containing the results of the 
study under paragraph (1) to the appropriate com-
mittees of Congress. 
TITLE III—FISCAL 
ACCOUNTABILITY 
SEC. 301. SIMPLIFICATION OF FEDERAL STUDENT LOANS. 
(a) TERMINATION.—Section 451 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087a) is amended— 
(1) in subsection (a), by adding at the end the 
following: ‘‘No sums may be expended after Sep-
tember 30, 2026, with respect to loans under this 
part for which the first disbursement is after such 
date, except Federal Direct simplification loans 
under section 460A.’’; and 
(2) by adding at the end, the following: 
‘‘(c) TERMINATION OF AUTHORITY TO MAKE NEW 
LOANS.—Notwithstanding subsection (a) or any other 
provision of law— 
‘‘(1) no new loans may be made under this part 
after September 30, 2026, except Federal Direct 
simplification loans under section 460A; and 
‘‘(2) no funds are authorized to be appro-
priated, or may be expended, under this Act, or any 
other Act to make loans under this part for which 
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the first disbursement is after September 30, 2026, 
except Federal Direct simplification loans under sec-
tion 460A, or as expressly authorized by an Act of 
Congress enacted after the date of enactment of 
Higher Education Reform and Opportunity Act of 
2019. 
‘‘(d) STUDENT
ELIGIBILITY
BEGINNING
WITH 
AWARD YEAR 2022.— 
‘‘(1) NEW BORROWERS.—No loan may be made 
under this part to a new borrower for which the first 
disbursement is after June 30, 2022, except Federal 
Direct simplification loans under section 460A. 
‘‘(2) BORROWERS
WITH
OUTSTANDING
BAL-
ANCES.—Subject to paragraph (3), with respect to a 
borrower who, as of July 1, 2022, has an out-
standing balance of principal or interest owing on a 
loan made under this part that is not a Federal Di-
rect simplification loan under section 460A, such 
borrower may— 
‘‘(A) in the case of such a loan made to 
the borrower for enrollment in a program of un-
dergraduate education, borrow loans made 
under this part that are not Federal Direct 
simplification loans under section 460A for any 
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eral Direct simplification loan under section 460A in 
accordance with paragraph (2).’’. 
(b) FEDERAL DIRECT SIMPLIFICATION LOANS.— 
Part D of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1087a et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 460A. FEDERAL DIRECT SIMPLIFICATION LOANS. 
‘‘(a) IN GENERAL.—Beginning on July 1, 2022, ex-
cept as provided in section 451(d), the Secretary shall 
make loans to borrowers under this section. Loans made 
under this section shall be known as Federal Direct sim-
plification loans. 
‘‘(b) FEDERAL DIRECT SIMPLIFICATION LOANS.— 
The provisions of this part shall apply with respect to Fed-
eral Direct simplification loans, except that Federal Direct 
simplification loans shall be made in accordance with the 
following: 
‘‘(1) The applicable rate of interest on a loan 
made under this section shall, for loans disbursed 
during any 12-month period beginning on July 1 
and ending on June 30, be determined on the pre-
ceding June 1 and be equal to— 
‘‘(A) a rate equal to the high yield of the 
10-year Treasury note auctioned at the final 
auction held prior to such June 1; plus 
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‘‘(B) 3.6 percent. 
‘‘(2) Interest on a loan made under this section 
shall begin to accrue on the date the loan is dis-
bursed. 
‘‘(3) The maximum— 
‘‘(A) annual amount of loans under this 
section an undergraduate student may borrow 
in any academic year (as defined in section 
481(a)(2)) or its equivalent shall be equal to 
$7,500; and 
‘‘(B) aggregate amount of loans under this 
section an undergraduate student may borrow 
shall be equal to $30,000. 
‘‘(4) The maximum— 
‘‘(A) annual amount of loans under this 
section a graduate or professional student may 
borrow in any academic year (as defined in sec-
tion 481(a)(2)) or its equivalent shall be equal 
to $12,500; and 
‘‘(B) aggregate amount of loans under this 
section a graduate or professional student may 
borrow shall be equal to $50,000. 
‘‘(5) The only length of repayment— 
‘‘(A) for a loan borrowed by an under-
graduate student shall be 15 years; and 
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‘‘(B) for a loan borrowed by a graduate or 
professional student shall be 25 years. 
‘‘(6) Repayment on a loan made under this sec-
tion shall begin— 
‘‘(A) after 125 percent of the normal time 
for completion of the program of study for 
which the borrower receives the loan under this 
section; or 
‘‘(B) if the borrower withdraws from the 
program of study before the borrower completes 
the program, 6 months after the date the bor-
rower withdraws. 
‘‘(7) The Secretary shall not repay or cancel 
any outstanding balance of principal or interest due 
on a Federal Direct simplification loan as part of a 
student loan forgiveness program, including such a 
program under section 455(m) and section 493C. 
‘‘(c) AUTHORIZATION TO LIMIT LOAN AMOUNTS.— 
An institution of higher education that is required under 
State law to enroll all eligible applicants for an academic 
year may limit the amount of loans under this section that 
a student may borrow for such academic year to not more 
than the tuition and fees at such institution for such aca-
demic year. 
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‘‘(d) LOAN FEE.—The Secretary shall not charge the 
borrower of a loan made under this part an origination 
fee. 
‘‘(e) REPAYMENT.—A borrower of a loan made under 
this section may accelerate without penalty repayment of 
the whole or any part of the loan.’’. 
SEC. 302. PHASING OUT LOAN FORGIVENESS. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is amended— 
(1) in section 455— 
(A) in subsection (d)(1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘(except 
a Federal Direct simplification loan)’’ after 
‘‘borrower of a loan made under this part’’; 
(B) in subsection (e), by adding at the end 
the following: 
‘‘(8) 
FEDERAL
DIRECT
SIMPLIFICATION 
LOANS.—Income contingent repayment shall not be 
available for a Federal Direct simplification loan.’’; 
and 
(C) in subsection (m), by adding at the 
end the following: 
‘‘(5) ELIMINATION OF LOAN FORGIVENESS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this Act and subject to sub-
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paragraph (B), with respect to any loan made 
on or after July 1, 2022, the Secretary may not 
cancel any outstanding balance of principal and 
interest due on the loan for the borrower of the 
loan pursuant to this subsection. 
‘‘(B) LOANS
FOR
CONTINUING
PROGRAM 
OF STUDY.—In the case of a borrower whose 
first loan for a program of study is made prior 
to July 1, 2022, the Secretary may repay or 
cancel any outstanding balance of principal and 
interest due on the subsequent loans for that 
borrower for the same program of study pursu-
ant to this subsection for— 
‘‘(i) loans made during the time it 
takes to complete that program of study; 
or 
‘‘(ii) loans made before July 1, 2026; 
whichever occurs earlier.’’; and 
(2) in section 493C, by adding at the end the 
following: 
‘‘(f) ELIMINATION OF LOAN FORGIVENESS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this Act and subject to paragraph (2), 
with respect to any loan made on or after July 1, 
2022, the Secretary may not repay or cancel any 
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outstanding balance of principal and interest due on 
the loan for the borrower of the loan pursuant to 
this section. 
‘‘(2) LOANS
FOR
CONTINUING
PROGRAM
OF 
STUDY.—In the case of a borrower whose first loan 
for a program of study is made prior to July 1, 
2022, the Secretary may repay or cancel any out-
standing balance of principal and interest due on the 
subsequent loans for that borrower for the same pro-
gram of study pursuant to this section for— 
‘‘(A) loans made during the time it takes 
to complete that program of study; or 
‘‘(B) loans made before July 1, 2026; 
whichever occurs earlier.’’. 
TITLE 
IV—SCHOOL 
ACCOUNT-
ABILITY 
FOR 
STUDENT 
LOANS 
SEC. 401. SCHOOL ACCOUNTABILITY FOR STUDENT LOANS. 
(a) DEFAULT RATE FINE.—Section 487 of the High-
er Education Act of 1965 (20 U.S.C. 1094), as amended 
by section 201, is further amended— 
(1) in subsection (a), by adding at the end the 
following: 
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‘‘(31) The institution will pay a default rate 
fine that is determined pursuant to subsection (k).’’; 
and 
(2) by adding at the end the following: 
‘‘(k) DEFAULT RATE FINE.— 
‘‘(1) IN GENERAL.—Each institution described 
in paragraph (2) shall pay to the Secretary an an-
nual default rate fine in accordance with this sub-
section. 
‘‘(2) APPLICABLE INSTITUTIONS.—An institu-
tion shall pay a default rate fine under this sub-
section for a fiscal year based on the cohort default 
rate (as defined in section 435(m)) on loans made 
under this title for such fiscal year. 
‘‘(3) FINE.— 
‘‘(A) IN GENERAL.—Each institution de-
scribed in paragraph (2) shall pay a default 
rate fine for a fiscal year that is equal to 10 
percent of the applicable amount determined 
under subparagraph (B)(i) for such fiscal year. 
‘‘(B) APPLICABLE AMOUNT.— 
‘‘(i) IN
GENERAL.—The applicable 
amount for a fiscal year with respect to an 
institution shall be an amount equal to the 
product of the amount of loans made 
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under this title for such fiscal year, and 
the applicable rate determined in clause 
(ii). If the applicable rate is equal to or 
less than zero percent then the applicable 
amount shall be equal to zero. 
‘‘(ii) APPLICABLE RATE.—The appli-
cable rate for a fiscal year with respect to 
an institution shall be the rate that is 
equal to the difference between the cohort 
default rate on loans made under this title 
(as defined in section 435(m)) for such fis-
cal year and the average rate of total un-
employment in the United States for the 3- 
year period covered by that cohort default 
rate (as defined in section 435(m)), as de-
termined by the Secretary of Labor. 
‘‘(4) CREDIT
FOR
CERTAIN
INSTITUTIONS.— 
Each institution that is described in paragraph (2) 
shall receive a $400 credit for the fiscal year for 
each graduate of the institution during such fiscal 
year who received a Federal Pell Grant while en-
rolled at the institution. 
‘‘(5) FLEXIBILITY IN COUNSEL AND ADVICE.— 
Notwithstanding any other provision of the Act, the 
Secretary shall grant institutions of higher education 
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flexibility under this Act to counsel and advise stu-
dents on Federal financial aid, including granting 
flexibility for institutions to award less than the 
maximum amount of Federal student aid for which 
an individual is eligible if the cost of tuition, room, 
and board at the institution is less than such max-
imum amount.’’. 
(b) FLEXIBILITY IN COUNSELING AND ADVICE.— 
Section 485(l) of the Higher Education Act of 1965 (20 
U.S.C. 1092(l)) is amended by adding at the end the fol-
lowing: 
‘‘(3) FLEXIBILITY
IN
COUNSELING
AND
AD-
VICE.—In addition to the entrance counseling under 
paragraph (1), an eligible institution may require 
any borrower, at or prior to the time of a disburse-
ment to the borrower of a loan made under part D, 
to receive the information described in paragraph 
(2) with respect to such loan, or any other financial 
counseling, including financial literacy counseling.’’. 
Æ 
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