Higher Education Reform and Opportunity Act of 2017
This bill amends the Higher Education Act of 1965 to make postsecondary education courses and programs, such as apprenticeship programs, that provide credits toward a postsecondary certification, credential, or degree eligible for federal student aid funding if the programs and courses are accredited by a state that has an alternative accreditation agreement with the Department of Education.
The bill terminates loan forgiveness for borrowers under the income contingent repayment options for new loans made under the William D. Ford Federal Direct Loan Program.
An institution that receives federal student aid funding must pay a default rate fine that is based on the default rate of loans made to its students.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4274 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 4274
To amend the Higher Education Act of 1965 to provide for accreditation
reform, to require institutions of higher education to publish
information regarding student success, to provide for fiscal
accountability, and to provide for school accountability for student
loans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 7, 2017
Mr. DeSantis (for himself, Mr. Dunn, Mr. Meadows, Mr. Walker, Mr.
Labrador, Mr. Perry, Mr. Brat, Mr. Yoho, Mr. Budd, Mr. Norman, Mr.
Loudermilk, Mr. Webster of Florida, Mr. Francis Rooney of Florida, Mr.
Gohmert, Mr. Palazzo, Mr. Weber of Texas, Mr. Farenthold, and Mr. Buck)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to provide for accreditation
reform, to require institutions of higher education to publish
information regarding student success, to provide for fiscal
accountability, and to provide for school accountability for student
loans.
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 ``Higher Education Reform and
Opportunity Act of 2017''.
TITLE I--ACCREDITATION REFORM
SEC. 101. ACCREDITATION REFORM.
(a) Definition of Institution of Higher Education.--Section 102(a)
of the Higher Education Act of 1965 (20 U.S.C. 1002(a)) is amended--
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7), respectively;
(2) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``Subject to paragraphs (2) through (4)'' and
inserting ``Subject to paragraphs (2) through (5)'';
(3) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(B) by inserting after subparagraph (A) the
following:
``(B) if accredited by an authorized accreditation
authority in a State that has an alternative
accreditation agreement with the Secretary, as
described in paragraph (5)--
``(i) an institution that provides
postsecondary education;
``(ii) a postsecondary apprenticeship
program; or
``(iii) a postsecondary education course or
program provided by an institution of
postsecondary education, a nonprofit
organization, or a for-profit organization or
business;''; and
(4) by inserting after paragraph (4), the following:
``(5) State alternative accreditation.--
``(A) In general.--Notwithstanding any other
provision of law, a State may establish an alternative
accreditation system for the purpose of establishing
institutions that provide postsecondary education and
postsecondary education courses or programs as eligible
for funding under title IV if the State enters into an
agreement with the Secretary for the establishment of
the alternative accreditation system. Such
institutions, courses, or programs may include--
``(i) institutions that provide
postsecondary education;
``(ii) postsecondary apprenticeship
programs;
``(iii) any other postsecondary education
course or program offered at an institution of
postsecondary education, a nonprofit
organization, or a for-profit organization or
business; and
``(iv) any of the entities described in
clauses (i) through (iii) that do not award a
postsecondary certification, credential, or
degree, provided that such entity provides
credit that will apply toward a postsecondary
certification, credential, or degree.
``(B) Alternative accreditation agreement.--The
alternative accreditation agreement described in
subparagraph (A) shall include the following:
``(i) The designation of one or more
authorized accrediting entities within the
State, such as the State Department of
Education, another State agency, an industry-
specific accrediting agency, or another entity,
and an explanation of the process through which
the State will select such authorized
accrediting entities.
``(ii) The standards or criteria that an
institution that provides postsecondary
education and a postsecondary education course
or program must meet in order to--
``(I) receive an initial
accreditation as part of the
alternative accreditation system; and
``(II) maintain such accreditation.
``(iii) A description of the appeals
process through which an institution that
provides postsecondary education and a
postsecondary education course or program may
appeal to an authorized accrediting entity if
such institution, course, or program is denied
accreditation under the State alternative
accreditation system.
``(iv) Each authorized accrediting entity's
policy regarding the transfer of credits
between institutions that provide postsecondary
education and postsecondary education courses
or programs within the State that are
accredited as part of the alternative
accreditation system.
``(v) The Secretary's reporting
requirements for the State regarding the State
alternative accreditation system, including--
``(I) the contents of reports that
must be submitted to the Secretary,
which may include information such as--
``(aa) in the case of a
postsecondary education course
or program that is accredited
through the State alternative
accreditation system--
``(AA) the number
and percentage of
students who
successfully complete
each such postsecondary
education course or
program; and
``(BB) the number
and percentage of
students who
successfully obtain a
postsecondary
certification,
credential, or degree
using credit obtained
from each such
postsecondary education
course or program; and
``(bb) in the case of an
institution that provides
postsecondary education that is
accredited through the State
alternative accreditation
system--
``(AA) the number
and percentage of
students who
successfully obtain a
postsecondary
certification,
credential, or degree
from such institution;
and
``(BB) the number
and percentage of
students who do not
successfully obtain a
postsecondary
certification,
credential, or degree
from such institution
but do obtain credit
from such institution
toward a postsecondary
degree, credential, or
certification;
``(II) the frequency with which
such reports must be submitted to the
Secretary; and
``(III) any requirements for third
party verification of information
contained in such reports.
``(vi) The State policy regarding public
accessibility to certain information relating
to institutions that provide postsecondary
education and postsecondary education courses
and programs accredited under the State
alternative accreditation system, including--
``(I) the information described in
clause (v)(I); and
``(II) information about the rates
of job placement for individuals that
have graduated from an institution or
completed a course or program that is
accredited under the State alternative
accreditation system, if available.
``(vii) An assurance by the State that
under the State alternative accreditation
system, only institutions that provide
postsecondary education and postsecondary
education courses or programs that provide
credits toward a postsecondary certification,
credential, or degree (as defined by the State
in accordance with clause (viii)) will be
accredited.
``(viii) The State's definition of a
postsecondary certification, credential, or
degree, as such term applies to the requirement
described in clause (vii).
``(ix) A description of the agreements that
the State will enter into with institutions
that provide postsecondary education and
postsecondary education courses or programs
that are accredited under the alternative
accreditation system to enable such
institutions, courses, or programs to be
eligible under a program authorized under title
IV, for participation in the direct student
loan program, and for the origination of loans
under part D of title IV, and how such
agreements will operate in lieu of the
agreements described in sections 487 and 454.
``(x) A description of how the State will
select institutions that provide postsecondary
education and postsecondary education courses
or programs that are accredited under the
alternative accreditation system, in lieu of
the selection process described in section 453,
for--
``(I) participation in the direct
student loan program under part D of
title IV; and
``(II) approval allowing such
institution, program, or course to
originate direct loans under part D of
title IV.
``(xi) A description of how the State will
administer title IV funds for institutions that
provide postsecondary education, postsecondary
apprenticeship programs, and postsecondary
education courses or programs provided by an
institution of postsecondary education, a
nonprofit organization, or a for-profit
organization or business that are accredited
through the alternative accreditation system.
``(C) Denial of agreement.--If the Secretary
decides not to enter into an agreement with a State for
the establishment of an alternative accreditation
system in the State pursuant to this paragraph, the
Secretary shall submit a list of the reasons for such
decision to the State.
``(D) Time limit.--Each agreement the Secretary
enters into for the establishment of an alternative
accreditation system in a State shall be for a period
of 10 years.''.
(b) Title IV Eligibility Requirements.--Part G of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by
adding at the end the following:
``SEC. 493E. STATE ACCREDITED INSTITUTIONS, PROGRAMS, OR COURSES.
``Notwithstanding any other provision of law, an institution,
program, or course that is eligible for funds under this title in
accordance with section 102(a)(1)(B) and meets the requirements of
section 102(a)(5) shall not be required to meet any other requirements
of this title. For purposes of this title, such an institution,
program, or course shall be deemed to be an eligible institution that
meets the requirements of section 487.''.
TITLE II--TRANSPARENCY IN HIGHER EDUCATION
SEC. 201. TIME FOR TRANSPARENCY IN HIGHER EDUCATION.
(a) In General.--Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.) is amended--
(1) in section 487(a), by adding at the end the following:
``(30) The institution will publish information in
compliance with section 493F.''; and
(2) in part G, as amended by section 101, by adding at the
end the following:
``SEC. 493F. INSTITUTIONAL PUBLICATION OF INFORMATION.
``(a) Publication of Information.--
``(1) In general.--Each institution of higher education
participating in a program under this title shall publish, on
an annual basis and in a readily accessible format (including
online and in an alternative format), the information described
in paragraphs (2) and (3).
``(2) Information.--Each institution of higher education
described in paragraph (1) shall publish, with respect to the
institution as a whole and with respect to each program of
study offered by the institution, the following information for
the most recent fiscal year for which the information is
available:
``(A) For each of the following, the percentage and
number of students enrolled at the institution or in
the program of study, as applicable, who receive the
following:
``(i) Federal grant aid, including Federal
Pell Grants under subpart 1 of part A, Federal
Supplemental Educational Opportunity Grants
under subpart 3 of part A, or any other Federal
postsecondary education grant aid or subsidy.
``(ii) Federal student loans, including
Federal Direct Stafford Loans, Federal Direct
Unsubsidized Stafford Loans, Federal Direct
PLUS Loans, and Federal Perkins Loans.
``(iii) State grant aid.
``(iv) Institutional grants.
``(v) A student loan from a State.
``(vi) A student loan from another source.
``(B) Student body enrollment status, including as
a--
``(i) first-time, full-time student;
``(ii) first-time, part-time student;
``(iii) non-first-time, full-time student;
and
``(iv) non-first-time, part-time student.
``(C) An alumni report that includes the following:
``(i) The percentage of students who do not
complete the program of study the student
initially started upon enrollment.
``(ii) The percentage of students who
transfer.
``(iii) The percentage of students who
complete the program of study the student
initially started upon enrollment.
``(iv) The average length of time for a
student to complete the program of study.
``(v) The percentage of students who
continue on to higher levels of education.
``(vi) The percentage of students who are
employed, disaggregated by program of study.
``(vii) The number and percentage of alumni
contacted for such report.
``(viii) The response rate of alumni
contacted for such report.
``(3) Publication of default and nonrepayment rates.--In
addition to the information described in paragraph (2), each
institution of higher education described in paragraph (1)
shall publish, with respect to the institution as a whole and
with respect to each program of study offered by the
institution, the following information for the most recent
fiscal year for which the information is available:
``(A) The average amount of total Federal student
loan debt accrued upon graduation.
``(B) The average amount of total Federal student
loan debt accrued by students who leave the institution
without having graduated.
``(C) Federal student loan default rate.
``(D) Federal student loan non-repayment rate.
``(E) Default and non-repayment rate, including as
a--
``(i) first-time, full-time student;
``(ii) first-time, part-time student;
``(iii) non-first-time, full-time student;
and
``(iv) non-first-time, part-time student.
``(F) Default and non-repayment rate, of--
``(i) students who complete a program of
study;
``(ii) students who transfer; and
``(iii) students who do not complete a
program of study.
``(b) Privacy.--
``(1) Compliance with ferpa.--In carrying out this section,
an institution of higher education and any personnel of the
institution shall not share any personally identifiable
information and shall act in accordance with section 444 of the
General Education Provisions Act (20 U.S.C. 1232g, commonly
known as the `Family Educational Rights and Privacy Act of
1974').
``(2) Prohibition on use of information.--Information
published pursuant to this section shall not be used--
``(A) by a Federal employee, agency, or officer, or
an institution of higher education to take action
against an individual; and
``(B) in legal processes or admitted as evidence in
any judicial or administrative proceeding.
``(3) Penalties.--The Secretary shall establish penalties
for a violation of paragraph (1) or (2) that includes both a
monetary fine and up to 5 years in prison.
``(4) Audits.--In carrying out this section, the State in
which the institution of higher education is located shall
contract with an independent third party to conduct audits of
the publication of information described in subsection (a)(1)
to ensure quality, validity, reliability, and compliance with
all Federal standards of data quality and individual privacy.
``(c) Rule of Construction.--Nothing in this section shall be
construed to authorize or permit the Secretary or any employee or
contractor of the Department to mandate, direct, or control the
selection of practices or curriculum by an institution of higher
education.''.
(b) GAO Report.--
(1) Study.--The Comptroller General of the United States
shall conduct a study that compiles all the institutional
publication of information pursuant to section 493F of the
Higher Education Act of 1965.
(2) Report.--Not later than October 1 of the fourth fiscal
year after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report containing
the results of the study under paragraph (1) to the appropriate
committees of Congress.
TITLE III--FISCAL ACCOUNTABILITY
SEC. 301. PHASING OUT LOAN FORGIVENESS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 455--
(A) in subsection (d), by adding at the end the
following:
``(6) Elimination of loan forgiveness.--Notwithstanding any
other provision of this Act, with respect to any loan made on
or after 6 months after the date of enactment of the Higher
Education Reform and Opportunity Act of 2017, the Secretary may
not repay or cancel any outstanding balance of principal and
interest due on the loan for the borrower of the loan pursuant
to this subsection.'';
(B) in subsection (e), by adding at the end the
following:
``(8) Elimination of loan forgiveness.--Notwithstanding any
other provision of this Act, with respect to any loan made on
or after 6 months after the date of enactment of the Higher
Education Reform and Opportunity Act of 2017, the Secretary may
not repay or cancel any outstanding balance of principal and
interest due on the loan for the borrower of the loan pursuant
to this subsection.''; and
(C) in subsection (m), by adding at the end the
following:
``(5) Elimination of loan forgiveness.--Notwithstanding any
other provision of this Act, with respect to any loan made on
or after 6 months after the date of enactment of the Higher
Education Reform and Opportunity Act of 2017, the Secretary may
not cancel any outstanding balance of principal and interest
due on the loan for the borrower of the loan pursuant to this
subsection.''; and
(2) in section 493C, by adding at the end the following:
``(f) Elimination of Loan Forgiveness.--Notwithstanding any other
provision of this Act, with respect to any loan made on or after 6
months after the date of enactment of the Higher Education Reform and
Opportunity Act of 2017, the Secretary may not repay or cancel any
outstanding balance of principal and interest due on the loan for the
borrower of the loan pursuant to this section.''.
TITLE IV--SCHOOL ACCOUNTABILITY FOR STUDENT LOANS
SEC. 401. SCHOOL ACCOUNTABILITY FOR STUDENT LOANS.
Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094),
as amended by section 201, is further amended--
(1) in subsection (a), by adding at the end the following:
``(31) The institution will pay a default rate fine that is
determined pursuant to subsection (k).''; and
(2) by adding at the end the following:
``(k) Default Rate Fine.--
``(1) In general.--Each institution described in paragraph
(2) shall pay to the Secretary a default rate fine in
accordance with this subsection.
``(2) Applicable institutions.--An institution shall pay a
default rate fine under this subsection for a fiscal year based
on the cohort default rate on loans made, insured, or
guaranteed under this title for such fiscal year.
``(3) Fine.--
``(A) In general.--Each institution described in
paragraph (2) shall pay a default rate fine for a
fiscal year that is equal to 10 percent of the
applicable amount determined under subparagraph (B) for
such fiscal year.
``(B) Applicable amount.--The applicable amount for
a fiscal year with respect to an institution shall be
an amount equal to the difference between--
``(i) the amount of defaulted loans made,
insured, or guaranteed under this title for
such fiscal year; and
``(ii) the amount that is equal to the
product of the average rate of total
unemployment in the United States for such
fiscal year, as determined by the Secretary of
Labor, and the amount described in clause (i).
``(4) Credit for certain institutions.--Each institution
that is described in paragraph (2) shall receive a $400 credit
for the fiscal year for each graduate of the institution during
such fiscal year who received a Federal Pell Grant while
enrolled at the institution.
``(5) Flexibility in counsel and advice.--Notwithstanding
any other provision of the Act, the Secretary shall grant
institutions of higher education flexibility under this Act to
counsel and advise students on Federal financial aid, including
granting flexibility for institutions to award less than the
maximum amount of Federal student aid for which an individual
is eligible if the cost of tuition, room, and board at the
institution is less than such maximum amount.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
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