369 
cate otherwise satisfies the requirements of 
paragraph (1); and 
‘‘(iii)(I) the ineligible institution or organi-
zation provides 25 percent or less of the edu-
cational program; or 
‘‘(II)(aa) the ineligible institution or orga-
nization provides more than 25 percent of the 
educational program; and 
‘‘(bb) the eligible institution’s accrediting 
agency or association has determined that the 
eligible institution’s arrangement meets the 
agency’s standards for the contracting out of 
educational services in accordance with section 
496(c)(5)(B)(iv). 
‘‘(B) For purposes of subparagraph (A), the term ‘el-
igible institution’ means an institution described in section 
487(a).’’; and 
(3) in subsection (c)(2), by striking ‘‘part B 
of’’. 
SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES. 
Part G of title IV (20 U.S.C. 1088 et seq. is amend-
ed, as amended by section 481, is further amended by in-
serting after section 481A (20 U.S.C. 1088a) the fol-
lowing: 
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370 
‘‘SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES. 
‘‘(a) INELIGIBILITY OF AN EDUCATIONAL PROGRAM 
BASED ON LOW REPAYMENT RATES.— 
‘‘(1) IN GENERAL.—With respect to fiscal year 
2016 and each succeeding fiscal year, an educational 
program at an institution of higher education whose 
loan repayment rate is less than 45 percent for each 
of the 3 most recent fiscal years for which data are 
available shall not be considered an eligible program 
for the fiscal year in which the determination is 
made and for the 2 succeeding fiscal years, unless, 
not later than 30 days after receiving notification 
from the Secretary of the loss of eligibility under 
this paragraph, the institution appeals the loss of 
such program’s eligibility to the Secretary. 
‘‘(2) APPEAL.—The Secretary shall issue a de-
cision on any such appeal within 45 days after its 
submission. Such decision may permit a program to 
be considered an eligible program, if— 
‘‘(A) the institution demonstrates to the 
satisfaction of the Secretary that— 
‘‘(i) the Secretary’s calculation of 
such program’s loan repayment rate is not 
accurate; and 
‘‘(ii) recalculation would increase such 
program’s loan repayment rate for any of 
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the 3 fiscal years equal to or greater than 
45 percent; or 
‘‘(B) the program is not subject to para-
graph (1) by reason of paragraph (3). 
‘‘(3) PARTICIPATION RATE INDEX.— 
‘‘(A) IN
GENERAL.—An institution that 
demonstrates to the Secretary that a program’s 
participation rate index is equal to or less than 
0.11 for any of the 3 most recent fiscal years 
for which data is available shall not be subject 
to paragraph (1). 
‘‘(B) INDEX CALCULATION.—The partici-
pation rate index for a program shall be deter-
mined by multiplying— 
‘‘(i) the amount of the difference be-
tween— 
‘‘(I) 1.0; and 
‘‘(II) the quotient that results by 
dividing— 
‘‘(aa) the program’s loan re-
payment rate for a fiscal year, or 
the weighted average loan repay-
ment rate for a fiscal year, by 
‘‘(bb) 100; and 
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‘‘(ii) the quotient that results by di-
viding— 
‘‘(I) the percentage of the pro-
gram’s regular students, enrolled on 
at least a half-time basis, who re-
ceived a covered loan for a 12-month 
period ending during the 6 months 
immediately preceding the fiscal year 
for which the program’s loan repay-
ment rate or the weighted average 
loan repayment rate is determined, by 
‘‘(II) 100. 
‘‘(C) DATA.—An institution shall provide 
the Secretary with sufficient data to determine 
the program’s participation rate index not later 
than 30 days after receiving an initial notifica-
tion of the program’s draft loan repayment rate 
under subsection (d)(4)(C). 
‘‘(D) NOTIFICATION.—Prior to publication 
of a final loan repayment rate under subsection 
(d)(4)(A) for a program at an institution that 
provides the data described in subparagraph 
(C), the Secretary shall notify the institution of 
the institution’s compliance or noncompliance 
with subparagraph (A). 
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373 
‘‘(b) REPAYMENT IMPROVEMENT AND ASSESSMENT 
OF ELIGIBILITY BASED
ON LOW LOAN REPAYMENT 
RATES.— 
‘‘(1) FIRST YEAR.— 
‘‘(A) IN GENERAL.—An institution with a 
program whose loan repayment rate is less than 
45 percent for any fiscal year shall establish a 
repayment improvement task force to prepare a 
plan to— 
‘‘(i) identify the factors causing such 
program’s loan repayment rate to fall 
below such percent; 
‘‘(ii) establish measurable objectives 
and the steps to be taken to improve the 
program’s loan repayment rate; and 
‘‘(iii) specify actions that the institu-
tion can take to improve student loan re-
payment, including appropriate counseling 
regarding loan repayment options. 
‘‘(B) TECHNICAL ASSISTANCE.—Each in-
stitution subject to this paragraph shall submit 
the plan under subparagraph (A) to the Sec-
retary, who shall review the plan and offer tech-
nical assistance to the institution to promote 
improved student loan repayment. 
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374 
‘‘(2) SECOND CONSECUTIVE YEAR.— 
‘‘(A) IN GENERAL.—An institution with a 
program whose loan repayment rate is less than 
45 percent for two consecutive fiscal years, 
shall— 
‘‘(i) require the institution’s repay-
ment improvement task force established 
under paragraph (1) to review and revise 
the plan required under such paragraph; 
and 
‘‘(ii) submit such revised plan to the 
Secretary. 
‘‘(B) REVIEW BY THE SECRETARY.—The 
Secretary— 
‘‘(i) shall review each revised plan 
submitted in accordance with this para-
graph; and 
‘‘(ii) may direct that such plan be 
amended to include actions, with measur-
able objectives, that the Secretary deter-
mines, based on available data and anal-
yses of student loan repayment and non-re-
payment, will promote student loan repay-
ment. 
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375 
‘‘(c) PROGRAMMATIC LOAN REPAYMENT RATE DE-
FINED.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (d), for purposes of this section, the term 
‘loan repayment rate’ means, when used with respect 
to an educational program at an institution— 
‘‘(A) with respect to any fiscal year in 
which 30 or more current and former students 
in such program enter repayment on a covered 
loan received for attendance in such program, 
the percentage of such current and former stu-
dents— 
‘‘(i) who enter repayment in such fis-
cal year on a covered loan received for at-
tendance in such program; and 
‘‘(ii) who are in a positive repayment 
status on each such covered loan at the 
end of the second fiscal year following the 
fiscal year in which such students entered 
repayment on such loan; and 
‘‘(B) with respect to any fiscal year in 
which fewer than 30 of the current and former 
students in such program enter repayment on a 
covered loan received for attendance in such 
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376 
program, the percentage of such current and 
former students— 
‘‘(i) who, in any of the three most re-
cent fiscal years, entered repayment on a 
covered loan received for attendance in 
such program; and 
‘‘(ii) who are in a positive repayment 
status on each such covered loan at the 
end of the second fiscal year following the 
fiscal year in which such students entered 
repayment on such loan. 
‘‘(2) GUARANTY AGENCY REQUIREMENTS.—The 
Secretary shall require that each guaranty agency 
that has insured loans for current or former stu-
dents of the institution afford such institution a rea-
sonable opportunity (as specified by the Secretary) 
to review and correct errors in the information re-
quired to be provided to the Secretary by the guar-
anty agency for the purposes of calculating a loan 
repayment rate for programs at such institution, 
prior to the calculation of such rate. 
‘‘(3) POSITIVE REPAYMENT STATUS.—For pur-
poses of this section, the term ‘positive repayment 
status’, when used with respect to a borrower of a 
covered loan, means— 
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‘‘(A) the borrower has entered repayment 
on such loan, and such loan is less than 90 
days delinquent; 
‘‘(B) the loan is paid in full (but not 
through consolidation); or 
‘‘(C) with respect to a covered loan that is 
a Federal ONE Loan, the loan is in a 
deferment described in 469A(b)(1), and with 
respect to a covered loan made, insured, or 
guaranteed under part B or made under part 
D, the loan is in a deferment or forbearance 
that is comparable to a deferment described in 
469A(b)(1). 
‘‘(4) COVERED
LOAN.—For purposes of this 
section— 
‘‘(A) the term ‘covered loan’ means— 
‘‘(i) a loan made, insured, or guaran-
teed under section 428 or 428H; 
‘‘(ii) a Federal Direct Stafford Loan; 
‘‘(iii) a Federal Direct Unsubsidized 
Stafford Loan; 
‘‘(iv) a Federal Direct PLUS Loan 
issued to a graduate or professional stu-
dent; 
‘‘(v) a Federal ONE Loan; or 
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394 
‘‘(A) CONSEQUENCE OF WITHDRAWAL.—If 
a recipient’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) SPECIAL
RULE.—For purposes of 
subparagraph (A), a student— 
‘‘(i) who is enrolled in a program of-
fered in modules is not considered with-
drawn if the change in the student’s at-
tendance constitutes a change in enroll-
ment status within the payment period 
rather than a discontinuance of attendance 
within the payment period; and 
‘‘(ii) is considered withdrawn if the 
student follows the institution’s official 
withdrawal procedures or leaves without 
notifying the institution and has not re-
turned before the end of the payment pe-
riod.’’; 
(B) in paragraph (3)— 
(i) in subparagraph (B), by striking 
clauses (i) and (ii) and inserting the fol-
lowing: 
‘‘(i) 0 percent, if the day the student 
withdrew occurs when the student has 
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402 
(B) by redesignating clauses (i) through 
(ix) as clauses (iv) through (xii), respectively; 
(C) by inserting before clause (iv), as so 
redesignated, the following: 
‘‘(i) a summary of the outstanding 
balance of principal and interest due on 
the loans made to the borrower under this 
title; 
‘‘(ii) an explanation of the grace pe-
riod preceding repayment and the expected 
date that the borrower will enter repay-
ment; 
‘‘(iii) an explanation of cases of inter-
est capitalization and that the borrower 
has the option to pay any interest that has 
accrued while the borrower was in school 
or that may accrue during the grace period 
preceding repayment or during an author-
ized period of deferment or forbearance, 
prior to the capitalization of the interest;’’; 
(D) in clause (iv), as so redesignated— 
(i) by striking ‘‘sample information 
showing the average’’ and inserting ‘‘infor-
mation, based on the borrower’s out-
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403 
standing balance described in clause (i), 
showing the borrower’s’’; and 
(ii) by striking ‘‘of each plan’’ and in-
serting ‘‘of at least the standard repay-
ment plan and the income-based repay-
ment plan under section 466(d)’’; 
(E) in clause (ix), as so redesignated— 
(i) by inserting ‘‘decreased credit 
score,’’ after ‘‘credit reports,’’; and 
(ii) by inserting ‘‘potential reduced 
ability to rent or purchase a home or car, 
potential difficulty in securing employ-
ment,’’ after ‘‘Federal law,’’; 
(F) in clause (x), as so redesignated, by 
striking ‘‘consolidation loan under section 428C 
or a’’; 
(G) in clauses (xi) and (xii), as so redesig-
nated, by striking ‘‘and’’ at the end; and 
(H) by adding at the end the following: 
‘‘(xiii) for each of the borrower’s loans 
made under this title for which the borrower is 
receiving counseling under this subsection, the 
contact information for the servicer of the loan 
and a link to the Website of such servicer; and 
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