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Question: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Space Tourism Promotion Act of
2001''.

SEC. 2. FINDINGS.

The Congress finds that--
(1) humans have long had a yearning to travel in space and
experience conditions beyond Earth's atmosphere;
(2) forty years of human space flight experience have
demonstrated the feasibility of safe travel to and from space
as well as the ability of humans to live and work in space;
(3) the Nation's human space flight program has developed
technologies and operational procedures that the private sector
could make use of to enable American citizens to experience
space travel;
(4) space tourism has the potential to become a significant
industry and a powerful stimulus for advances in space
transportation;
(5) the Federal Government could play an important role in
stimulating the development of space tourism by means of
guaranteed loans, tax credits, expeditious establishment of a
straightforward and predictable regulatory structure, and
research and development in technologies that may enable the
private sector to develop operational passenger-carrying space
transportation systems and on-orbit habitations;
(6) as the agency of the Federal Government primarily
responsible for the development of America's commercial sector,
the Department of Commerce, and in particular its Office of
Space Commercialization, should have the lead role in
encouraging the growth of space tourism;
(7) as the agency of the Federal Government currently
responsible for regulating America's commercial space
transportation industry, the Federal Aviation Administration,
and in particular its Office of Commercial Space
Transportation, should have the lead role in establishing the
regulatory structure necessary to ensure the safety of United
States space tourism;
(8) as the agency of the Federal Government responsible for
carrying out the major share of the Nation's civil space
activities, the National Aeronautics and Space Administration
should continue its traditional role of conducting research and
development related to new space technologies and systems and
facilitating their transfer to the private sector;
(9) it is an appropriate role for the Federal Government to
undertake measures to encourage the development of space
tourism in the United States; and
(10) at the same time, it is an inappropriate role and a
misallocation of taxpayer-provided resources for the Federal
Government to compete with the private sector in the provision
of transportation vehicles or facilities for space tourism.

SEC. 3. DEFINITIONS.

In this Act--
(1) terms that are defined in the Federal Credit Reform Act
of 1990 have the meaning given those terms in that Act; and
(2) the term ''space tourism'' means travel to, from, or
within outer space, or to the surface of a body in space other
than Earth, or habitation in outer space, for the purpose of
recreation.

SEC. 4. LOAN GUARANTEES.

(a) Authority.--
(1) In general.--The Secretary of Commerce may guarantee up
to 85 percent of the value of loans for the purpose of
developing transportation systems, habitation facilities, or
other infrastructure required for space tourism.
(2) Limitation.--The maximum aggregate amount of loan
commitments that may be guaranteed under this section by the
Secretary of Commerce at any one time shall be $2,000,000,000.
(3) Administrative fee.--The Secretary of Commerce is
authorized to collect from any borrower, and to the extent
provided for in advance in appropriations Acts to use, an
amount not to exceed 0.5 percent of the amount borrowed, for
covering the administrative expenses and other annual costs to
the Department of Commerce of the loan guarantee.
(b) Terms and Conditions.--A loan guaranteed under this section
shall be on such terms and conditions as the Secretary of Commerce may
prescribe.
(c) Term of Loans.--Loans guaranteed under this section shall be
for a term of not to exceed 20 years, or 100 percent of the useful life
of the substantial portion of the physical assets to be financed by the
loans, whichever is shorter, as determined by the Secretary of
Commerce.
(d) Lien on Interests in Assets.--Upon providing a loan guarantee
to a borrower under this section, the Secretary of Commerce shall have
liens which shall be superior to all other liens on assets of the
borrower equal to 85 percent of the unpaid balance of the loan subject
to the guarantee.
(e) Protection.--No loan shall be guaranteed under this section
unless the Secretary of Commerce determines that the borrower is
responsible and that adequate provision is made for servicing the loan
on reasonable terms and for protecting the interests of the United
States.
(f) Validity.--A loan guarantee under this section shall be
conclusive evidence that such guarantee has been properly obtained, and
that the underlying loan qualifies for such guarantee. In an action for
fraud or material misrepresentation by the holder of a loan guaranteed
under this section, such guarantee shall be presumed to be valid,
legal, and enforceable.
(g) Forbearance.--The Secretary of Commerce may approve an
agreement, between the parties to a loan guaranteed under this section,
that provides for forbearance for the benefit of the borrower if the
forbearance will result in no cost to the Federal Government.
(h) Administration and Oversight Responsibility.--The Office of
Space Commercialization shall be responsible for the administration and
oversight of this section on behalf of the Department of Commerce.

SEC. 5. CAPITAL GAINS EXCLUSION.

(a) In General.--Part I of subchapter P of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by adding at the end the following new
section:

''SEC. 1203. EXCLUSION OF GAINS FOR QUALIFIED SPACE TOURISM
CORPORATIONS.

''(a) In General.--Gross income shall not include gain on the sale
or exchange of any stock of a qualified space tourism corporation held
for more than one year.
''(b) Qualified Space Tourism Corporation.--For purposes of
subsection (a), the term 'qualified space tourism corporation' means,
with respect to any taxable year, a domestic corporation which is a C
corporation if--
''(1) such corporation is organized exclusively for
providing to unrelated persons any service of space tourism (as
defined in section 3 of the Space Tourism Promotion Act of
2001), and
''(2) such corporation derives at least 75 percent of its
gross receipts from the active conduct of a trade or business
of providing a service described in paragraph (1).
''(c) Certain Purchases by Corporations of Its Own Stock.--For
purposes of this section, rules similar to the rules of section
1202(c)(3) shall apply.
''(d) Related Person.--Persons shall be treated as related to each
other if such persons would be treated as a single employer under the
regulations prescribed under section 52(b). In the case of a
corporation which is a member of an affiliated group of corporations
filing a consolidated return, such corporation shall be treated as
providing services related to space tourism to an unrelated person if
such services are provided to such a person by another member of such
group.
''(e) Termination.--This section shall not apply to sales or
exchanges after December 31, 2011.''.
(b) Clerical Amendment.--The table of sections for part I of
subchapter P of such Code is amended by adding at the end the following
new item:

''Sec. 1203. Exclusion of gains for
qualified space tourism
corporations.''
(c) Effective Date.--The amendments made by this section shall
apply to sales and exchanges in taxable years beginning after December
31, 2001.

SEC. 6. ESTABLISHMENT OF REGULATORY STANDARDS.

(a) In General.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Transportation shall issue
regulations to govern--
(1) activities necessary to ensure the safe operation of
passenger-carrying launch and reentry vehicles and spacecraft
for space tourism, to the extent to which regulatory procedures
have not previously been established by law; and
(2) activities related to the provision of and safe
operation of habitable facilities in outer space for space
tourism purposes.
(b) Orbital Debris Avoidance.--Not later than 2 years after the
date of the enactment of this Act, the Secretary of Transportation
shall issue regulations to prevent, to the extent practicable, the
growth of orbital debris resulting from activities associated with
space tourism.
(c) Legal Regime.--Activities taking place on space tourism
habitation facilities and passenger-carrying launch and reentry
vehicles and spacecraft for space tourism licensed or otherwise
regulated by the Secretary of Transportation shall be governed by the
laws of the United States.

SEC. 7. USE OF FEDERAL FACILITIES.

(a) Prohibition Against Certain Uses of Federal Facilities.--
(1) In general.--Launch, reentry, and space travel vehicles
owned by the Federal Government shall not be used for the
transport of any individuals other than those engaged in or
supporting the conduct of official business of the United
States or the conduct of scientific or engineering research and
development, except in emergency situations.
(2) International space station.--The United States portion
of the International Space Station shall not be visited or
occupied by any individuals other than those engaged in or
supporting the conduct of official business of the United
States or the conduct of scientific or engineering research and
development, and those authorized by relevant international
agreements, except in emergency situations.
(b) Use of Other Federal Facilities.--The use of other Federal
facilities and infrastructure, such as launch ranges and data relay
satellites, shall be made available to commercial entities engaged in
space tourism on a cost-reimbursable basis to the extent that excess
capacity exists at the time the commercial entity requests the use of
such facilities and infrastructure.

Answer: Space Tourism Promotion Act of 2001 - Authorizes the Secretary of Commerce to guarantee up to 85 percent of the value of loans for developing transportation systems, habitation facilities, or other infrastructure required for space tourism.Amends the Internal Revenue Code of 1986 to exclude from gross income gain on the sale or exchange of any stock of a qualified space tourism corporation held for more than a year.Requires the Secretary of Transportation to issue regulations to: (1) govern activities necessary to ensure the safe operation of passenger-carrying launch and reentry vehicles and spacecraft for space tourism and activities related to the provision and safe operation of habitable facilities in outer space for space tourism; and (2) prevent the growth of orbital debris resulting from activities associated with space tourism.Prohibits: (1) the use of launch, reentry, and space travel vehicles owned by the Government for the transport of any individuals other than those engaged in or supporting the conduct of official business or scientific or engineering research and development (R&D), except in emergencies; and (2) the U.S. portion of the International Space Station from being visited or occupied by any individuals other than those engaged in or supporting the conduct of such business or R&D and those authorized by relevant international agreements, except in emergencies.Requires the use of other Federal facilities and infrastructure, such as launch ranges and data relay satellites, to be made available to commercial entities engaged in space tourism on a cost-reimbursable basis to the extent that excess capacity exists.

Question: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Improving Physician Access in
Teaching Hospitals (PATH) Act of 2011''.

SEC. 2. DISTRIBUTION OF ADDITIONAL RESIDENCY SLOTS.

Section 1886(h) of the Social Security Act (42 U.S.C. 1395ww(h)) is
amended--
(1) in paragraph (7)(E), by inserting ''paragraph (9),''
after ''paragraph (8),''; and
(2) by adding at the end the following:
''(9) Distribution of additional residency positions.--
''(A) Reductions in limit based on unused
positions.--
''(i) In general.--Except as provided in
clause (ii), if a hospital's resident level (as
defined in paragraph (7)(C)(i)) for each of the
5 most recent cost reporting periods (ending
before the date of the enactment of this
paragraph) of the hospital for which a cost
report has been settled (or, if not, submitted
subject to audit) as determined by the
Secretary is less than the otherwise applicable
resident limit (as defined in paragraph
(8)(H)(iii)), effective for portions of cost
reporting periods occurring on or after the
paragraph (9) effective date (as defined in
subparagraph (E)), the otherwise applicable
resident limit shall be reduced by the
difference between such otherwise applicable
resident limit and the highest such reference
resident level for any of such 5 cost reporting
periods.
''(ii) Exception.--Clause (i) shall not
apply to--
''(I) a hospital located in a rural
area with fewer than 250 beds; or
''(II) a hospital that has had in
effect a voluntary residency reduction
plan under paragraph (6) or pursuant to
section 402 of Public Law 90-248.
''(B) Requirements for additional residency
slots.--
''(i) In general.--The Secretary shall
increase the otherwise applicable resident
limit for hospitals that submit an application
under this subparagraph by such number as the
Secretary may approve for portions of cost
reporting periods occurring on or after the
paragraph (9) effective date. The aggregate
number of increases in the otherwise applicable
resident limit under this subparagraph shall be
equal to the sum of--
''(I) the aggregate reduction in
such limits attributable to
subparagraph (A) (as estimated by the
Secretary); and
''(II) 1,000 for portions of cost
reporting periods occurring during the
12-month period beginning on the
paragraph (9) effective date, 1,000
additional positions for portions of
cost reporting periods occurring during
the 12-month period beginning 1 year
after such effective date, 1,000
additional positions for portion of
cost reporting period occurring during
the 12-month period beginning 2 years
after such effective date, and such
number of additional positions for
portions of the 2 subsequent cost
reporting periods as the Secretary may
determine necessary to support
residency training programs in
specialities that exceed 3 years.
''(ii) Consideration in redistribution.--In
determining for which hospitals the increase in
the otherwise applicable resident limit is
provided under this subparagraph, the Secretary
shall take into account--
''(I) data provided by the Health
Resources and Services Administration
as a national standard to exhibit a
specific demand in the health care
workforce, as well as the
Administration's projected demand and
supply for physicians in the specialty
of medicine involved; and
''(II) the demonstrated likelihood
of the hospital filling positions made
available under this paragraph within
the first 3 cost reporting periods
beginning on or after the paragraph (9)
effective date.
The Secretary shall give special consideration
for up to 25 additional positions in the case
of a hospital that demonstrates the likelihood
of filing such positions during the first cost
reporting period beginning on or after such
effective date.
''(iii) Limitation.--In no case shall the
number of additional positions made available
to a hospital under this paragraph exceed 25 in
the first cost reporting period or 75 for all
cost reporting periods.
''(C) Priority for additional positions resulting
from hospital closures.--With respect to additional
positions described in subparagraph (B)(i)(I) which are
derived from a reduction in limits under subparagraph
(A) for a hospital that closed (in this subparagraph
referred to as a 'closed hospital'), the Secretary
shall distribute the increase to hospitals in the
following priority order:
''(i) First, to other hospitals for the
program or programs under which the hospital
had a cooperative arrangement with the closed
hospital under which residents in the graduate
medical education program of the closed
hospital also rotated through the other
hospital.
''(ii) Second, to other hospitals that are
members of the same affiliated group of
hospitals as the closed hospital.
''(iii) Third, to other hospitals that are
located in the same or contiguous core-based
statistical area as the closed hospital.
''(D) Preference.--After applying subparagraph (C)
and the special consideration under subparagraph (B),
in determining for which hospitals the increase in the
otherwise applicable resident limit is provided under
subparagraph (B), the Secretary shall give preference
to hospitals--
''(i) that submit an application for new
residents in primary care and geriatric
medicine and in other specialties as determined
to be in demand under subparagraph (B)(ii)(I);
and
''(ii) that emphasize training in community
health centers and other community-based or
hospital-sponsored clinics, and private
physicians' offices, including physician
groups.
''(E) Paragraph (9) effective date defined.--In
this paragraph, the term 'paragraph (9) effective date'
means July 1 of the year that begins after the date of
the enactment of this paragraph.
''(F) Affiliation.--The provisions of this
paragraph shall be applied to hospitals which are
members of the same affiliated group (as defined by the
Secretary under paragraph (4)(H)(ii)) and the reference
resident level for each such hospital with respect to
the cost reporting period that results in the smallest
difference between the reference resident level and the
otherwise applicable resident limit.''.

SEC. 3. EXPANDING PRIMARY CARE BONUS TO CERTAIN UNDERSERVED
SPECIALTIES.

(a) In General.--Section 1833(x)(2)(A) of the Social Security Act
(42 U.S.C. 1395l(x)(2)(A)) is amended--
(1) in clause (i)--
(A) by striking ''or'' at the end of subclause (I);
(B) by striking ''and'' at the end of subclause
(II) and inserting ''or''; and
(C) by adding at the end the following new
subclause:
''(III) is a physician (as
described in section 1861(r)(1)) who is
in an underserved specialty, such as
psychiatry or neurology, as specified
by the Secretary, or other specialty
identified by the Secretary to be in
demand; and''; and
(2) in clause (ii), by inserting after ''(ii)'' the
following: ''in the case of an individual described in
subclause (I) or (II) of clause (i),''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to payments for items and services furnished on or after January
1, 2012.

SEC. 4. SMALL PHYSICIAN PRACTICE RESIDENCY CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by adding at the end the following new section:

''SEC. 45S. SMALL PHYSICIAN PRACTICE RESIDENCY CREDIT.

''(a) In General.--For purposes of section 38, the amount of the
small physician practice residency credit determined under this section
for any taxable year with respect to a qualified small physician
practice is the sum of the following:
''(1) Overall amount.--The per resident dollar amount
multiplied by the number of qualified teaching hospital
residents who provide services to, and are trained by, such
practice during the taxable year and who are in their first,
second, or third post-graduate year of medical residency.
''(2) Bonus.--The sum of--
''(A) 50 percent of the per resident dollar amount
multiplied by the number of such residents who are in
their first post-graduate year of medical residency
during the taxable year; and
''(B) 25 percent of the per resident dollar amount
multiplied by the average number of such residents who
are not counted under subparagraph (A) and are in their
second post-graduate year during the taxable year.
''(b) Qualified Small Physician Practice.--For purposes of this
section, the term 'qualified small physician practice' means any trade
or business of providing physicians' services (as defined in section
1861(q) of the Social Security Act), which may be a community health
center, that is owned and operated by a doctor of medicine or
osteopathy if fewer than 50 individuals are employed in such trade or
business (including new training sites) and the trade or business
includes as part of the practice the training of doctors of medicine or
osteopathy in a rotation covering at least 6 months in the taxable
year. All persons treated as a single employer under subsection (a) or
(b) or section 52 or subsection (m) or (o) of section 414 shall be
treated as a single trade or business for purposes of the preceding
sentence.
''(c) Qualified Teaching Hospital Residents.--For purposes of this
section, the term 'qualified teaching hospital resident' means any
resident (within the meaning of subparagraph (I) of section 1886(h)(5)
of the Social Security Act) in an approved medical residency training
program (as defined in subparagraph (A) of such section) which provides
services to the qualified small physician practice (while utilizing the
technologies and supplies of such practice) for a period not less
than--
''(1) 4 weeks in the case of a primary care resident (as
defined in subparagraph (H) of such section); or
''(2) 2 weeks in the case of any other resident.
''(d) Per Resident Dollar Amount.--For purposes of this section,
the term 'per resident dollar amount' means, in the case of a qualified
small physician practice that includes as part of the practice the
training of doctors of medicine or osteopathy in a rotation covering--
''(1) at least 6 months but less than 9 months in the
taxable year, $2,500; or
''(2) at least 9 months in the taxable year, $3,000.
''(e) Residents Not Taken Into Account More Than Once.--A qualified
teaching hospital resident shall be taken into account under subsection
(a) for the taxable in which the period described in subsection (c)
ends and shall not be so taken into account for any other taxable
year.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code (defining current year business credit) is amended
by striking ''plus'' at the end of paragraph (35), by striking the
period at the end of paragraph (36) and inserting '', plus'', and by
adding at the end the following new paragraph:
''(37) the small physician practice residency credit
determined under section 45S(a).''.
(c) Conforming Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:

''Sec. 45S. Small physician practice residency credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

Answer: Improving Physician Access in Teaching Hospitals (PATH) Act of 2011 - Amends title XVIII (Medicare) of the Social Security Act with respect to distribution of additional resident positions as they affect calculation of payments for direct graduate medical education (DME) costs.

States that, if a hospital's resident level for each of the five most recent cost reporting periods is less than the otherwise applicable resident limit, then the otherwise applicable resident limit shall be reduced by the difference between it and the highest reference resident level for any of those five cost reporting periods. Excepts from this reduction requirement a hospital: (1) located in a rural area with fewer than 250 beds, or (2) that has had in effect a voluntary residency reduction plan.

Requires the Secretary of Health and Human Services (HHS) to increase the otherwise applicable resident limit (create additional residency slots) for applicant hospitals according to a specified formula that takes into account the aggregate reduction in limits attributable to this Act.

Expands the primary care bonus to certain underserved specialties, such as psychiatry or neurology.

Amends the Internal Revenue Code to allow a small physician practice residency credit.

Question: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Protect Student Borrowers Act of
2013''.

SEC. 2. PURPOSE.

The purpose of this Act is to protect student borrowers by
requiring institutions of higher education to assume some of the risk
of default for student loans under part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.).

SEC. 3. INSTITUTIONAL REBATES TO THE DEPARTMENT OF EDUCATION FOR
DEFAULTED LOANS.

Section 454 of the Higher Education Act of 1964 (20 U.S.C. 1087d)
is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ''and'';
(B) in paragraph (6) by striking the period at the
end and inserting ''; and''; and
(C) by adding at the end the following:
''(7) provide that the institution accepts the
institutional risk-sharing requirements under subsection (d),
if applicable.''; and
(2) by adding at the end the following:
''(d) Institutional Risk-Sharing for Student Loan Defaults.--
''(1) In general.--Subject to paragraph (3), each
institution of higher education participating in the direct
student loan program under this part for a fiscal year that has
a rate of participation in such program for all students
enrolled at that institution for such fiscal year that is 25
percent or higher shall remit, at such times as the Secretary
may specify, a risk-sharing payment based on a percentage of
the volume of student loans under this part that are in
default, as determined under paragraph (2).
''(2) Determination of risk-sharing payments.--Subject to
paragraph (3), with respect to each fiscal year, an institution
of higher education described in paragraph (1) that has a
cohort default rate (as defined in section 435(m))--
''(A) that is 30 percent or higher for the most
recent fiscal year for which data are available, shall
pay to the Secretary for the fiscal year an amount that
is equal to 20 percent of the total amount (including
interest and collection fees) of loans made under this
part to students that are in default;
''(B) that is lower than 30 percent but not lower
than 25 percent for the most recent fiscal year for
which data are available, shall pay to the Secretary
for the fiscal year an amount that is equal to 15
percent of the total amount (including interest and
collection fees) of loans made under this part to
students that are in default;
''(C) that is lower than 25 percent but not lower
than 20 percent for the most recent fiscal year for
which data are available, shall pay to the Secretary
for the fiscal year an amount that is equal to 10
percent of the total amount (including interest and
collection fees) of loans made under this part to
students that are in default; and
''(D) that is lower than 20 percent but not lower
than 15 percent for the most recent fiscal year for
which data are available, shall pay to the Secretary
for the fiscal year an amount that is equal to 5
percent of the total amount (including interest and
collection fees) of loans made under this part to
students that are in default.
''(3) Waiver and reduced risk-sharing payments.--
''(A) Waiver.--The Secretary shall waive the risk-
sharing payments described in paragraph (1) for an
institution described in paragraph (2)(D) that meets
the requirements of subparagraph (D).
''(B) Reduced risk-sharing payments.--If an
institution has in place a student loan management plan
described in subparagraph (D) that is approved by the
Secretary, the Secretary shall reduce the total annual
amount of risk-sharing payments as follows:
''(i) With respect to an institution with a
cohort default rate described in paragraph
(2)(A), the risk-sharing payment shall be in an
amount that is equal to 15 percent of the total
amount (including interest and collection fees)
of loans made under this part to students that
are in default.
''(ii) With respect to an institution with
a cohort default rate described in paragraph
(2)(B), the risk-sharing payment shall be in an
amount that is equal to 10 percent of the total
amount (including interest and collection fees)
of loans made under this part to students that
are in default.
''(iii) With respect to an institution with
a cohort default rate described in paragraph
(2)(C), the risk-sharing payment shall be in an
amount that is equal to 5 percent of the total
amount (including interest and collection fees)
of loans made under this part to students that
are in default.
''(C) Continuation of waiver or reduced payments.--
An institution that receives a waiver under
subparagraph (A) or a reduced risk-sharing payment
under subparagraph (B) may receive a waiver or reduced
payment for a subsequent fiscal year only if the
Secretary determines that the institution is making
satisfactory progress in carrying out the student loan
management plan described in subparagraph (D),
including evidence of the effectiveness of the
individualized financial aid counseling for students.
''(D) Student loan management plan.--An institution
that seeks a waiver or reduction of its risk-sharing
payment, shall develop and carry out a student loan
management plan that shall include an analysis of the
risk factors correlated with higher student loan
defaults that are present at the institution and
actions that the institution will take to address such
factors. Such plan shall include individualized
financial aid counseling for students and strategies to
minimize student loan default and delinquency.
''(E) Waiver or reduction for certain
institutions.--In addition to the other risk-sharing
payment waivers and reductions described in this
paragraph, the Secretary may waive or reduce risk-
sharing payments if--
''(i) an institution is eligible under--
''(I) part A or part B of title
III; or
''(II) title V; and
''(ii) the Secretary determines that--
''(I) the institution is making
satisfactory progress in carrying out
the institution's student loan
management plan described under
subparagraph (D); and
''(II) granting a waiver or
reduction of risk-sharing payments
would be in the best interest of
students at the institution.
''(4) Prohibition.--An institution of higher education
shall not deny admission or financial aid to a student based on
a perception that such student may be at risk for defaulting on
a loan made under this part.
''(5) Fund for the deposit of risk-sharing payments.--
''(A) In general.--There is established in the
Treasury of the United States a separate account for
the deposit of risk-sharing payments collected under
this subsection. The Secretary shall deposit any
payments collected pursuant to this subsection into
such fund.
''(B) Use of funds.--Of the amounts in the fund
described in subparagraph (A), for each fiscal year--
''(i) not more than 50 percent of such
amounts shall be made available to the
Secretary to enter into contracts or
cooperative agreements for delinquency and
default prevention or rehabilitation under
section 456(d); and
''(ii) the Secretary shall reserve the
remainder of such amounts for a Federal Pell
Grant fund that shall be used to offset any
future shortfalls in funding under the Federal
Pell Grant program.
''(6) Applicability.--The Secretary shall carry out this
subsection beginning with the cohort default rate for the 2014
cohort. The 2014 cohort shall include current and former
students who enter repayment in fiscal year 2014.
''(7) Report to congress.--The Secretary shall report on an
annual basis to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and the
Workforce of the House of Representatives the following
information:
''(A) A list of institutions that have been subject
to risk-sharing payments in the previous year.
''(B) The required risk-sharing payment from such
institutions.
''(C) The amount of risk-sharing payments collected
from such institutions.
''(D) A list of the institutions that have received
waivers from the risk-sharing payment and the reason
for such waiver.
''(E) A list of the institutions that have received
reductions in the required risk-sharing payment.
''(F) The use of funds deposited from risk-sharing
payments, including a list of any contracts or
cooperative agreements for delinquency and default
prevention or rehabilitation and the amount reserved
for the Federal Pell Grant program.''.

SEC. 4. CONTRACTS AND COOPERATIVE AGREEMENTS.

Section 456 of the Higher Education Act of 1965 (20 U.S.C. 1087f)
is amended by adding at the end the following:
''(d) Contracts and Cooperative Agreements for Delinquency and
Default Prevention and for Default Rehabilitation.--The Secretary may
enter into contracts or cooperative agreements for--
''(1) statewide or institutionally based programs for the
prevention of Federal student loan delinquency and default at
institutions of higher education that--
''(A) have a high cohort default rate as defined
under section 435(m); or
''(B) serve large numbers or percentages of student
loan borrowers who have a risk factor associated with
higher default rates on Federal student loans under
this title, such as coming from a low-income family,
being a first generation postsecondary education
student, not having a secondary school diploma, or
having previously defaulted on, and rehabilitated, a
loan made under this title; and
''(2) increasing the number of borrowers who successfully
rehabilitate defaulted loans.''.

SEC. 5. FINANCIAL RESPONSIBILITY.

Section 498(c)(1) of the Higher Education Act of 1965 (20 U.S.C.
1099c(c)(1)) is amended by striking subparagraph (C) and inserting the
following:
''(C) to meet all of its financial obligations,
including institutional risk-sharing payments, refunds
of institutional charges, and repayments to the
Secretary for liabilities and debts incurred in
programs administered by the Secretary.''.

Answer:
Protect Student Borrowers Act of 2013 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require institutions of higher education (IHEs) participating in the William D. Ford Federal Direct Loan program to accept specified risk-sharing requirements. Requires an IHE, for any fiscal year in which at least 25% of the IHE's student body is participating in the Direct Loan program, to remit, at such times as the Secretary of Education specifies, a risk-sharing payment set at: 20% of the total amount of its defaulted Direct loans if its cohort default rate is 30% or higher, 15% of the total amount of its defaulted Direct loans if its cohort default rate is lower than 30% but not lower than 25%, 10% of the total amount of its defaulted Direct loans if its cohort default rate is lower than 25% but not lower than 20%, and 5% of the total amount of its defaulted Direct loans if its cohort default rate is lower than 20% but not lower than 15%. Directs the Secretary to make specified modifications to such risk-sharing requirements if an IHE develops and implements a student loan management plan that is approved by the Secretary. Requires that plan to include individualized financial aid counseling for students and strategies to minimize student loan default and delinquency. Allows the Secretary to waive or reduce an IHE's risk-sharing payments in certain other instances. Prohibits IHEs from denying admission or financial aid to a student based on a perception that the student may be at risk for defaulting on a Direct loan. Authorizes the Secretary to enter into contracts or cooperative agreements for: (1) statewide or institutionally-based programs for the prevention of federal student loan delinquency and default at IHEs that have a high cohort default rate or serve large numbers or percentages of students who have a higher risk of defaulting on student loans under title IV, and (2) increasing the number of borrowers who successfully rehabilitate defaulted loans Establishes a separate account in the Treasury for the deposit of the risk-sharing payments, of which: (1) up to 50% are to be used by the Secretary to enter into the contracts or cooperative agreements for delinquency and default prevention or rehabilitation, and (2) the remainder are to be used to offset any future shortfalls in funding under the Federal Pell Grant program. Makes an IHE's ability to meet its obligation to make risk-sharing payments part of the determination of its eligibility to participate in title IV programs.