Title: Combating Predatory Lending in Higher Education Act of 2021
Policy area: Education

Summary:
Combating Predatory Lending in Higher Education Act of 2021
This bill includes Direct PLUS Loans that are made to graduate students and parents on behalf of dependent students in an institution of higher education's (IHE's) cohort default rate. This rate is the percentage of an IHE's borrowers who enter repayment and default on certain student loans.
Further, the Department of Education must include this information in its annual report on cohort default rates.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5126 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 5126

To require that certain loans made to parents on behalf of a dependent 
  student and to graduate students are included in the definition of 
cohort default rate under the Higher Education Act of 1965, to require 
the Secretary of Education to report default rates for such loans, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 27, 2021

Ms. Van Duyne introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To require that certain loans made to parents on behalf of a dependent 
  student and to graduate students are included in the definition of 
cohort default rate under the Higher Education Act of 1965, to require 
the Secretary of Education to report default rates for such loans, 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 ``Combating Predatory Lending in 
Higher Education Act of 2021''.

SEC. 2. ADDITION OF CERTAIN LOANS TO PARENTS AND GRADUATE STUDENT TO 
              THE CALCULATION AND REPORTING OF COHORT DEFAULT RATES.

    (a) Definition of ``Cohort Default Rate''.--Section 435(m) of the 
Higher Education Act of 1965 (20 U.S.C. 1085(m)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``section 428, 428A, or 
                        428H'' and inserting ``this part or part D''; 
                        and
                            (ii) by inserting ``or a Federal Direct 
                        Consolidation Loan'' after ``section 428C''; 
                        and
                    (B) in subparagraph (C), by inserting ``or a 
                Federal Direct Consolidation Loan'' after ``section 
                428C''; and
            (2) in paragraph (2), by adding at the end the following 
        new subparagraph:
            ``(E) For the purposes of this subsection, the term 
        `students', when used with respect to a determination or 
        calculation of the number of students who enter repayment or 
        default on a loan received for attendance at an institution, 
        shall include parents with a Federal Direct PLUS Loan or a loan 
        under section 428B made on behalf of a dependent student for 
        attendance at the institution.''.
    (b) Collection and Reporting of Cohort Default Rates.--Section 
435(m)(4)(A) of such Act of 1965 (20 U.S.C. 1085(m)(4)(A)) is amended--
            (1) by striking ``section 428, 428A, or 428H'' and 
        inserting ``this part or part D''; and
            (2) by inserting ``or a Federal Direct Consolidation Loan'' 
        after ``section 428C''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for the first fiscal year beginning after the date of 
enactment of this Act, and each subsequent fiscal year.
                                 <all>