Foreign Medical School Accountability Fairness Act of 2013

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Medical School 
Accountability Fairness Act of 2013''.

SEC. 2. PURPOSE.

    To establish consistent eligibility requirements for graduate 
medical schools operating outside of the United States and Canada in 
order to increase accountability and protect American students and 
taxpayer dollars.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) Three for-profit schools in the Caribbean receive more 
        than two-thirds of all Federal funding under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) that goes 
        to students enrolled at foreign graduate medical schools, 
        despite those three schools being exempt from meeting the same 
        eligibility requirements as the majority of graduate medical 
        schools located outside of the United States and Canada.
            (2) The National Committee on Foreign Medical Education and 
        Accreditation and the Department of Education recommend that 
        all foreign graduate medical schools should be required to meet 
        the same eligibility requirements to participate in Federal 
        funding under title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1070 et seq.) and see no rationale for excluding certain 
        schools.
            (3) The attrition rate at United States medical schools 
        averaged 3 percent for the class beginning in 2009 while rates 
        at for-profit Caribbean schools have reached 26 percent or 
        higher.
            (4) In 2013, residency match rates for foreign trained 
        graduates averaged 53 percent compared to 94 percent for 
        graduates of medical schools in the United States.
            (5) On average, students at for-profit medical schools 
        operating outside of the United States and Canada amass more 
        student debt than those at medical schools in the United 
        States.

SEC. 4. REPEAL GRANDFATHER PROVISIONS.

    Section 102(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1002(a)(2)) is amended--
            (1) in subparagraph (A), by striking clause (i) and 
        inserting the following:
                            ``(i) in the case of a graduate medical 
                        school located outside the United States--
                                    ``(I) at least 60 percent of those 
                                enrolled in, and at least 60 percent of 
                                the graduates of, the graduate medical 
                                school outside the United States were 
                                not persons described in section 
                                484(a)(5) in the year preceding the 
                                year for which a student is seeking a 
                                loan under part D of title IV; and
                                    ``(II) at least 75 percent of the 
                                individuals who were students or 
                                graduates of the graduate medical 
                                school outside the United States or 
                                Canada (both nationals of the United 
                                States and others) taking the 
                                examinations administered by the 
                                Educational Commission for Foreign 
                                Medical Graduates received a passing 
                                score in the year preceding the year 
                                for which a student is seeking a loan 
                                under part D of title IV;''; and
            (2) in subparagraph (B)(iii), by adding at the end the 
        following:
                                    ``(V) Expiration of authority.--The 
                                authority of a graduate medical school 
                                described in subclause (I) to qualify 
                                for participation in the loan programs 
                                under part D of title IV pursuant to 
                                this clause shall expire beginning on 
                                the first July 1 following the date of 
                                enactment of the Foreign Medical School 
                                Accountability Fairness Act of 2013.''.

SEC. 5. LOSS OF ELIGIBILITY.

    If a graduate medical school loses eligibility to participate in 
the loan programs under part D of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1087a et seq.) due to the enactment of the 
amendments made by section 4, then a student enrolled at such graduate 
medical school on or before the date of enactment of this Act may, 
notwithstanding such loss of eligibility, continue to be eligible to 
receive a loan under such part D while attending such graduate medical 
school in which the student was enrolled upon the date of enactment of 
this Act, subject to the student continuing to meet all applicable 
requirements for satisfactory academic progress, until the earliest 
of--
            (1) withdrawal by the student from the graduate medical 
        school;
            (2) completion of the program of study by the student at 
        the graduate medical school; or
            (3) the fourth June 30 after such loss of eligibility.

Summary: Foreign Medical School Accountability Fairness Act of 2013 - Amends the Higher Education Act of 1965 to eliminate the exemption of certain foreign medical schools from the prohibition on foreign medical schools participating in the William D. Ford Federal Direct Loan program, unless:  at least 60% of those enrolled in, and at least 60% of the graduates of, the foreign medical school during the preceding year were not citizens, nationals, or permanent residents of the United States or were not in the United States with the intention of becoming citizens or permanent residents; and at least 75% of students or graduates of the medical school located outside the United States or Canada who took the examinations administered by the Educational Commission for Foreign Medical Graduates in the preceding year received a passing score.  Preserves the Direct Loan eligibility of students who were enrolled at schools excepted from that prohibition on or before the date of this Act's enactment.