Proprietary Institution of Higher Education Accountability Act

Bill: 113-hr-1928
Sponsor: full_name: Rep. DeLauro, Rosa L. [D-CT-3]
Introduced: 2013-05-09
Policy area: Education
Subjects: Government information and archives

Government lending and loan guarantees

Higher education

Performance measurement

Student aid and college costs
Latest action: action_date: 2013-07-08
text: Referred to the Subcommittee on Higher Education and Workforce Training.

Summaries:
action_date: 2013-05-09
action_desc: Introduced in House
text: <p>Proprietary Institution of Higher Education Accountability Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require the Secretary of Education, in calculating the cohort default rate for a proprietary institution of higher education, to treat its current and former students who have received a specified forbearance or deferment of over six months on direct loans before the end of the second fiscal year after they enter repayment on such loans, as students who have defaulted on such loans before the end of such second fiscal year.</p> <p>Applies that calculation to forbearances: (1) that have been agreed to by the parties to an insured loan and approved by the insurer, or (2) for borrowers whose educational debt burden equals or exceeds 20% of their income.</p> <p>Applies that calculation to deferments for borrowers who: (1) are seeking and unable to find full-time employment, or (2) have or will experience an economic hardship.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 1928 IN THE HOUSE OF REPRESENTATIVES May 9, 2013 Ms. DeLauro (for herself, Mr. Grijalva , Ms. Schwartz , and Mr. Takano ) introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To clarify the calculation of cohort default rates for proprietary institutions of higher education under the Higher Education Act of 1965.

1. Short title This Act may be cited as the Proprietary Institution of Higher Education Accountability Act . 2. Clarification of cohort default rate Section 435(m)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1085(m)(1) ) is amended— (1) in subparagraph (B), by inserting after the first sentence the following: In calculating the cohort default rate for a proprietary institution of higher education, the Secretary shall treat current and former students at the institution who have been granted, on loans made under part D and received for attendance at the institution, a forbearance or deferment described in subparagraph (D) for any period exceeding 6-months after entering repayment on such loans and before the end of the second fiscal year following the fiscal year in which such students entered such repayment, as students who have defaulted on such loans before the end of such second fiscal year. ; and (2) by adding at the end the following new subparagraph: (D) For purposes of subparagraph (B)— (i) the term forbearance means a forbearance granted for a reason described in subparagraph (A)(i)(II) or subparagraph (B) of section 428(c)(3); and (ii) the term deferment means a deferment granted for a reason described in subparagraph (B) or (D) of section 455(f)(2). .