Title: Make the Universities Pay Act
Policy area: Education

Summary:
Make the Universities Pay Act
This bill requires institutions of higher education (IHEs) to take certain actions related to federal student loans and addresses other related issues.
For example, the bill (1) makes each IHE participating in the Federal Direct Loan Program liable for 50% of any student loan balance that is in default and was used toward the cost of attendance at the IHE, and (2) expands the instances in which student loans may be discharged in bankruptcy.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4912 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 4912

 To amend the Higher Education Act of 1965 to require institutions of 
  higher education to repay a portion of student law default, to make 
student loan debts dischargeable in bankruptcy, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2022

  Mr. Hawley 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 require institutions of 
  higher education to repay a portion of student law default, to make 
student loan debts dischargeable in bankruptcy, and for other purposes.

    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 ``Make the Universities Pay Act''.

SEC. 2. INSTITUTIONS OF HIGHER EDUCATION REPAYING A PORTION OF STUDENT 
              LOAN DEBTS.

    Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) 
is amended by adding at the end the following:
    ``(d) Institutions of Higher Education Repaying a Portion of 
Student Loan Debts.--
            ``(1) In general.--Each institution of higher education 
        participating in the direct student loan program under this 
        part for a fiscal year shall be liable for 50 percent of any 
        student loan balance that is in default for a loan made under 
        this part that was used towards the cost of attendance at the 
        institution.
            ``(2) Offset exception.--An institution of higher education 
        shall not increase the costs of tuition at the institution, 
        charge any additional fee to students, or otherwise increase 
        the cost of attendance at the institution in order to offset 
        the liability of the institution under paragraph (1) unless 
        there is an equivalent percentage decrease in administrative 
        expenses at the institution.''.

SEC. 3. MAKING STUDENT LOAN DEBTS DISCHARGEABLE IN BANKRUPTCY.

    (a) Exceptions To Discharge.--Section 523(a) of title 11, United 
States Code, is amended by striking paragraph (8) and inserting the 
following:
            ``(8) for an educational benefit overpayment or loan made, 
        insured, or guaranteed by a governmental unit, or made under 
        any program funded in whole or in part by a governmental unit 
        or nonprofit institution, or for an obligation to repay funds 
        received as an educational benefit, scholarship, or stipend 
        received from a governmental unit or nonprofit institution, 
        unless--
                    ``(A) excepting such debt from discharge under this 
                paragraph would impose an undue hardship on the debtor 
                and the debtor's dependents;
                    ``(B) in the case of such an education benefit 
                overpayment or loan for undergraduate education, the 
                first payment on such debt became due before the 5-year 
                period (exclusive of any applicable suspension of the 
                repayment period) ending on the date of the filing of 
                the petition; or
                    ``(C) in the case of such an education benefit 
                overpayment or loan for graduate education, the first 
                payment on such debt became due before the 15-year 
                period (exclusive of any applicable suspension of the 
                repayment period) ending on the date of the filing of 
                the petition;''.
    (b) Application.--The amendment made by subsection (a) shall apply 
to any proceeding under title 11, United States Code, that is initiated 
on or after the date that is 180 days after the date of enactment of 
this Act.

SEC. 4. ENSURING TRANSPARENCY OF STUDENT OUTCOMES.

    Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094) is 
amended--
            (1) in subsection (a), by adding at the end the following:
            ``(30) The institution will, not later than September 30, 
        2023, and annually thereafter, comply with the following:
                    ``(A) Produce and transmit to the Secretary 
                statistical analysis using the statistical sampling 
                method developed under subsection (k) that consists of 
                the following measures of post-collegiate graduate 
                outcomes for the institution as a whole and 
                disaggregated by each degree or program of study 
                offered by the institution at time intervals of 1 year, 
                5 years, and 15 years after graduation:
                            ``(i) Mean and median earnings of 
                        graduates.
                            ``(ii) Student loan default rates of 
                        graduates.
                    ``(B) Publish and make available to the public the 
                statistical analysis produced under subparagraph (A) on 
                the website of the institution, within 2 clicks of the 
                homepage and without a paywall, email login, or other 
                restriction to access.''; and
            (2) by adding at the end the following:
    ``(k) Ensuring Transparency of Student Outcomes.--
            ``(1) Development of statistical sampling method.--The 
        Secretary shall--
                    ``(A) develop a statistical sampling method to be 
                used by institutions of higher education in fulfilling 
                the requirement described in subsection (a)(30); and
                    ``(B) establish a searchable database accessible to 
                the public of all analyses transmitted to the Secretary 
                pursuant to subsection (a)(30) that can be sorted by 
                institution and degree or program of study.
            ``(2) Audit and investigation authority.--The Inspector 
        General of the Department may audit and investigate the 
        veracity of statistical analysis transmitted to the Secretary 
        by an institution of higher education.''.
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