Title: Satisfactory Academic Progress Reset and Reform Act
Policy area: Education

Summary:
Satisfactory Academic Progress Reset and Reform Act
This bill revises satisfactory academic progress requirements for federal student-aid programs, including by allowing a student who has not been enrolled in an institution of higher education for two years to regain eligibility for federal student aid.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5033 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 5033

 To amend the Higher Education Act of 1965 to support college students 
                to meet satisfactory academic progress.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 16, 2020

  Mr. Booker introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To amend the Higher Education Act of 1965 to support college students 
                to meet satisfactory academic progress.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Satisfactory Academic Progress Reset 
and Reform Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are the following:
            (1) To support college students to meet satisfactory 
        academic progress requirements under the Higher Education Act 
        of 1965 (20 U.S.C. 1001 et seq.), allowing them to continue 
        receiving Federal student aid and persist in college.
            (2) To empower students who had lost access to Federal 
        student aid due to previously failing to meet satisfactory 
        academic progress requirements under the Higher Education Act 
        of 1965 (20 U.S.C. 1001 et seq.) to become eligible again for 
        Federal student aid after 2 years away from college.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) Satisfactory academic progress (SAP) requirements for 
        Federal student aid programs have become increasingly strict 
        and inflexible for students over the last 40 years.
            (2) The increase in SAP requirements has made the need-
        based Federal Pell Grant resemble a performance-based 
        scholarship, despite the disproportionately negative impact on 
        students and families who are low-income.
            (3) Approximately 40 percent of first-year Federal Pell 
        Grant recipients risk losing Federal student aid due to not 
        meeting the credit completion component of SAP requirements.
            (4) Institutions are responsible for setting SAP 
        requirements; however, Federal statute establishes guidance for 
        minimum grade point average (GPA) and credit completion 
        standards.
            (5) Many institutions conduct an SAP status check every 
        payment period, allowing students at risk of not meeting the 
        SAP standards to benefit from a one-term ``warning status'' 
        before losing Federal student aid or filing an appeal; however, 
        students at institutions that only evaluate SAP status once per 
        year are at risk of losing their Federal student aid 
        immediately upon learning of their status.
            (6) While many students struggle to meet minimum academic 
        standards, current SAP policy targets students and families 
        with the lowest incomes--those earning less than $50,000 per 
        year. Federal student aid recipients with low GPAs leave 
        college more quickly than students with low GPAs that do not 
        rely on Federal student aid.
            (7) Current SAP policy also disproportionately harms Black, 
        Latino, and Native American students. In 2015 through 2016, 57 
        percent of Black students, 47 percent of Latino students, and 
        51 percent of Native American students relied on Federal Pell 
        Grants to pay for college, while for that same year, 39 percent 
        of all undergraduate students received a Federal Pell Grant.
            (8) SAP requirements apply to all Federal student aid under 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
        seq.), including Federal Pell Grants, Federal Direct Loans, and 
        Federal Work-Study. State and institutional need-based programs 
        also often base their own requirements on the Federal SAP 
        rules.

SEC. 4. SATISFACTORY ACADEMIC PROGRESS RESET.

    Section 484(c) of the Higher Education Act of 1965 (20 U.S.C. 
1091(c)) is amended to read as follows:
    ``(c) Satisfactory Progress.--
            ``(1) Definitions.--In this section:
                    ``(A) Appeal.--The term `appeal' means a process by 
                which a student who is not meeting the institution's 
                satisfactory academic progress standards petitions the 
                institution for reconsideration of the student's 
                eligibility for assistance under this title.
                    ``(B) Financial aid probation.--The term `financial 
                aid probation' means a status assigned by an 
                institution to a student who fails to make satisfactory 
                academic progress and who has appealed and has had 
                eligibility for aid reinstated.
                    ``(C) Financial aid warning.--The term `financial 
                aid warning' means a status assigned to a student who 
                fails to make satisfactory academic progress at the end 
                of a semester or equivalent period.
            ``(2) Satisfactory academic progress policy.--An 
        institution shall establish a reasonable satisfactory academic 
        progress policy for determining whether an otherwise eligible 
        student is making satisfactory academic progress in the 
        student's educational program and may receive assistance under 
        this title. The Secretary shall consider the institution's 
        policy to be reasonable if--
                    ``(A) the policy is at least as strict as the 
                policy the institution applies to a student who is not 
                receiving assistance under this title;
                    ``(B) the policy provides for consistent 
                application of standards to all students within the 
                category of students, including full-time, part-time, 
                undergraduate, and graduate students, and educational 
                programs established by the institution;
                    ``(C)(i) the policy specifies the grade point 
                average (GPA) that a student must achieve at each 
                evaluation, or if a GPA is not an appropriate 
                qualitative measure, a comparable assessment measured 
                against a norm; and
                    ``(ii) if a student is enrolled in an educational 
                program of more than 2 academic years, the policy 
                specifies that at the end of the second academic year, 
                the student must have a GPA of at least a `C' or its 
                equivalent, or have academic standing consistent with 
                the institution's requirements for graduation;
                    ``(D) the policy provides for measurement of the 
                student's progress at each evaluation;
                    ``(E) the policy describes--
                            ``(i) how a student's GPA and progress 
                        toward completion are affected by course 
                        incompletes, withdrawals, or repetitions, or 
                        transfers of credit from other institutions, 
                        including that credit hours from another 
                        institution that are accepted toward the 
                        student's educational program are counted as 
                        both attempted and completed hours; and
                            ``(ii) how after a student reenrolls after 
                        the student's satisfactory academic progress 
                        was reset pursuant to paragraph (3)(B), the 
                        student may have any credits that were earned 
                        before the student was determined not to be 
                        making satisfactory academic progress counted 
                        for purposes of determining progress when the 
                        student reenrolls, but any attempted hours 
                        (including incompletes, withdrawn courses, and 
                        failed courses) the student may have 
                        accumulated before the student was determined 
                        not to be making satisfactory academic progress 
                        would not negatively impact the determination 
                        of the student's making satisfactory academic 
                        progress after such reset;
                    ``(F) the policy provides that, a student who has 
                not achieved the required GPA, or who is not making 
                progress toward completion in the student's educational 
                program, at the time of each evaluation with respect to 
                a student who is in an educational program of 2 
                academic years or less in length, or at the end of the 
                second academic year with respect to a student who is 
                in an educational program of more than 2 academic years 
                in length, is no longer eligible to receive assistance 
                under this title, except as provided in subparagraph 
                (G) with respect to a student placed on financial aid 
                warning or financial aid probation;
                    ``(G) if the institution places students on 
                financial aid warning, or on financial aid probation, 
                the policy describes these statuses and that--
                            ``(i) a student on financial aid warning--
                                    ``(I) may receive assistance under 
                                this title for one payment period 
                                despite a determination that the 
                                student is not making satisfactory 
                                academic progress; and
                                    ``(II) may be assigned such status 
                                without an appeal or other action by 
                                the student; and
                            ``(ii) a student on financial aid probation 
                        may receive assistance under this title for one 
                        payment period and the institution may require 
                        the student to fulfill specific terms and 
                        conditions, such as taking a reduced course 
                        load or enrolling in specific courses, and, at 
                        the end of such one payment period, the student 
                        must meet the institution's satisfactory 
                        academic progress standards or meet the 
                        requirements of the academic plan developed by 
                        the institution and the student to qualify for 
                        continued assistance under this title;
                    ``(H) if the institution permits a student to 
                appeal a determination by the institution that the 
                student is not making satisfactory academic progress, 
                the policy describes--
                            ``(i) how the student may reestablish the 
                        student's eligibility to receive assistance 
                        under this title;
                            ``(ii) the basis on which the student may 
                        file an appeal, including because of the death 
                        of a relative, an injury or illness of the 
                        student, or another special circumstances; and
                            ``(iii) information the student must submit 
                        regarding why the student failed to make 
                        satisfactory academic progress, and what has 
                        changed in the student's situation that will 
                        allow the student to demonstrate satisfactory 
                        academic progress at the next evaluation;
                    ``(I) if the institution does not permit a student 
                to appeal a determination by the institution that the 
                student is not making satisfactory academic progress, 
                the policy describes how the student may reestablish 
                the student's eligibility to receive assistance under 
                this title;
                    ``(J) the policy provides for notification to 
                students of the results of an evaluation that impacts 
                the student's eligibility for assistance under this 
                title; and
                    ``(K) the policy does not impose satisfactory 
                progress limitations on institutional aid that are more 
                stringent than the standard applied under this 
                subsection without demonstrating to the Secretary the 
                effectiveness of such limitations on improving student 
                persistence in, and completion of, postsecondary study.
            ``(3) Regaining eligibility.--
                    ``(A) Students who remain in school.--Whenever a 
                student fails to meet the eligibility requirements of 
                subsection (a)(2) as a result of the application of 
                this subsection and subsequent to that failure the 
                student has academic standing consistent with the 
                requirements for graduation, as determined by the 
                institution, for any grading period, the student may, 
                subject to this subsection, again be eligible under 
                subsection (a)(2) for a grant, loan, or work assistance 
                under this title.
                    ``(B) Students who leave school.--If a student has 
                not been enrolled in any institution of higher 
                education for the immediately preceding 2 years, any 
                previous failure to meet the eligibility requirements 
                of subsection (a)(2) shall not be used in any 
                determination of eligibility of such student under such 
                subsection. Such student described in the preceding 
                sentence shall, after the date of enrollment subsequent 
                to such 2 year period, meet the requirements described 
                in paragraph (2). A student shall be eligible for a 
                reset of eligibility pursuant to this paragraph not 
                more than 2 times. The Secretary shall--
                            ``(i) send a notification to each student 
                        who failed to meet the eligibility requirements 
                        of subsection (a)(2) once such student regains 
                        eligibility for a grant, loan, or work 
                        assistance under this title pursuant to this 
                        paragraph, including--
                                    ``(I) information that the student 
                                may use grant, loan, or work assistance 
                                under this title for enrollment at any 
                                eligible institution, not just the 
                                institution in which the student was 
                                previously enrolled;
                                    ``(II) information on how many 
                                semesters of eligibility for a grant, 
                                loan, or work assistance under this 
                                title to which the student still has 
                                access; and
                                    ``(III) that the student should ask 
                                any prospective eligible institution 
                                how many of the student's previously 
                                completed credits the student would be 
                                able to transfer; and
                            ``(ii) submit an annual report to Congress 
                        on the outcomes of students who have received a 
                        reset of eligibility pursuant to this 
                        paragraph, including--
                                    ``(I) the number of students who 
                                reenroll in an eligible institution 
                                after such reset, disaggregated by race 
                                or ethnicity, sex, age, socioeconomic 
                                status, and disability status;
                                    ``(II) the 250 eligible 
                                institutions with the highest numbers 
                                of enrolled students receiving grant, 
                                loan, or work assistance under this 
                                title after such a reset; and
                                    ``(III) the average completion rate 
                                and time to completion for students who 
                                reenroll in an eligible institution 
                                after such reset, broken down by 
                                institution.
            ``(4) Evaluation of academic progress.--
                    ``(A) In general.--An institution that determines 
                that a student is not making progress under its policy 
                may disburse funds under this title to the student 
                subject to this paragraph.
                    ``(B) Payment period following not making academic 
                progress.--For the payment period following the payment 
                period in which a student did not make satisfactory 
                academic progress, the institution may place the 
                student on financial aid warning and disburse funds 
                under this title to the student.
                    ``(C) Payment period following financial aid 
                warning.--For the payment period following a payment 
                period during which a student was on financial aid 
                warning, the institution may place the student on 
                financial aid probation, and disburse funds under this 
                title to the student if--
                            ``(i) the institution evaluates the 
                        student's progress and determines that student 
                        did not make satisfactory academic progress 
                        during the payment period the student was on 
                        financial aid warning;
                            ``(ii) the student appeals the 
                        determination; and
                            ``(iii)(I) the institution determines that 
                        the student should be able to meet the 
                        institution's satisfactory academic progress 
                        standards by the end of the subsequent payment 
                        period; or
                            ``(II) the institution develops an academic 
                        plan for the student that, if followed, will 
                        ensure that the student is able to meet the 
                        institution's satisfactory academic progress 
                        standards by a specific point in time.
                    ``(D) Payment period following financial aid 
                probation.--A student on financial aid probation for a 
                payment period may not receive funds under this title 
                for the subsequent payment period unless the student 
                makes satisfactory academic progress or the institution 
                determines that the student met the requirements 
                specified by the institution in the academic plan for 
                the student.''.

SEC. 5. COMMUNICATING SATISFACTORY ACADEMIC PROGRESS STANDARDS.

    (a) In General.--Section 484(c) of the Higher Education Act of 1965 
(20 U.S.C. 1091(c)), as amended by section 4, is further amended by 
adding at the end the following:
            ``(5) Detailing requirements to students.--Each institution 
        of higher education that enrolls students who receive any 
        grant, loan, or work assistance under this title shall detail 
        the institution's requirements regarding students maintaining 
        satisfactory progress--
                    ``(A) to such students before the students begin 
                classes at the institution through a detailed 
                communication that may be separate from a financial aid 
                offer; and
                    ``(B) on the financial aid web page of the website 
                of the institution.''.
    (b) Consumer Testing.--The Secretary of Education--
            (1) shall conduct consumer testing to develop exemplary 
        practices and templates--
                    (A) to support institutions of higher education in 
                carrying out section 484(c)(5) of the Higher Education 
                Act of 1965 (20 U.S.C. 1091(c)(5)); and
                    (B) which shall be available as resources for 
                institutions of higher education; and
            (2) shall not require the use of such practices and 
        templates by institutions of higher education.
    (c) Effective Date.--This section and the amendment made by this 
section shall take effect on--
            (1) the first July 30 following the date of enactment of 
        this Act; or
            (2) if the first July 30 following the date of enactment of 
        this Act is less than 6 months from such date of enactment, the 
        second July 30 following the date of enactment of this Act.

SEC. 6. FREQUENCY OF SATISFACTORY ACADEMIC PROGRESS EVALUATION AND 
              COMMUNICATION.

    (a) In General.--Section 484(c)(4) of the Higher Education Act of 
1965 (20 U.S.C. 1091(c)), as amended by section 4, is further amended 
by adding at the end the following:
                    ``(E) Frequency of academic progress evaluation and 
                communication.--
                            ``(i) In general.--Subject to clause (ii), 
                        for the purpose of determining whether 
                        presently enrolled students are maintaining 
                        satisfactory progress, each institution of 
                        higher education that enrolls students who 
                        receive any grant, loan, or work assistance 
                        under this title shall review the progress of 
                        such students at the end of each payment period 
                        (as described in section 668.4 of title 34, 
                        Code of Federal Regulations, or any successor 
                        regulation).
                            ``(ii) Shorter payment periods.--For 
                        institutions described in clause (i) that have 
                        payment periods that are shorter than on the 
                        semester system basis (such as on a quarterly 
                        or trimester systems basis or by clock hour 
                        program or non-term program), such institutions 
                        shall review the progress of presently enrolled 
                        students at the end of each semester or 
                        equivalent period of 12 to 18 weeks.
                            ``(iii) Financial aid warning.--Each 
                        institution described in clause (i), at the end 
                        of the payment period (or at the end of the 
                        semester or equivalent period for institutions 
                        described in clause (ii)), shall send a 
                        financial aid warning to presently enrolled 
                        students that do not meet the GPA requirement 
                        described in paragraph (2), or its equivalent 
                        or academic standing consistent with the 
                        requirements for graduation, as determined by 
                        the institution, that informs the students of 
                        their risk of being determined to not be 
                        maintaining satisfactory progress and therefore 
                        losing eligibility for grant, loan, or work 
                        assistance under this title and provides 
                        information on--
                                    ``(I) the specific criteria of the 
                                institution's academic requirements 
                                that the student is not meeting and the 
                                specific improvements needed to meet 
                                the requirements; and
                                    ``(II) how to meet with the 
                                student's academic advisor to get the 
                                academic support the student needs.''.
    (b) Effective Date.--This section and the amendment made by this 
section shall take effect on--
            (1) the first July 30 following the date of enactment of 
        this Act; or
            (2) if the first July 30 following the date of enactment of 
        this Act is less than 6 months from such date of enactment, the 
        second July 30 following the date of enactment of this Act.

SEC. 7. LEVERAGING THE STRENGTHENING INSTITUTIONS PROGRAM TO SUPPORT 
              STUDENTS NOT MEETING SATISFACTORY ACADEMIC PROGRESS 
              REQUIREMENTS.

    Section 311(c)(6) of the Higher Education Act of 1965 (20 U.S.C. 
1057(c)(6)) is amended by inserting ``(especially students not meeting 
satisfactory academic progress requirements)'' after ``retain 
students''.
                                 <all>