Promoting Real Opportunity, Success, and Prosperity through Education Reform Act or the PROSPER Act
This bill amends the Higher Education Act of 1965 to revise the governance of federal financial aid provided to students pursuing a postsecondary education and institutions of higher education (IHEs), including by:
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4508 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 4508
To support students in completing an affordable postsecondary education
that will prepare them to enter the workforce with the skills they need
for lifelong success.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 1, 2017
Ms. Foxx (for herself and Mr. Guthrie) introduced the following bill;
which was referred to the Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To support students in completing an affordable postsecondary education
that will prepare them to enter the workforce with the skills they need
for lifelong success.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Promoting Real
Opportunity, Success, and Prosperity through Education Reform Act'' or
the ``PROSPER Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.
TITLE I--GENERAL PROVISIONS
Part A--Definitions
Sec. 101. Definition of institution of higher education.
Sec. 102. Institutions outside the United States.
Sec. 103. Additional definitions.
Sec. 104. Regulatory relief.
Part B--Additional General Provisions
Sec. 111. Free speech protections.
Sec. 112. National Advisory Committee on Institutional Quality and
Integrity.
Sec. 113. Repeal of certain reporting requirements.
Sec. 114. Programs on drug and alcohol abuse prevention.
Sec. 115. Campus access for religious groups.
Sec. 116. Secretarial prohibitions.
Sec. 117. Ensuring equal treatment by governmental entities.
Part C--Cost of Higher Education
Sec. 121. College Dashboard website.
Sec. 122. Net price calculators.
Sec. 123. Text book information.
Part D--Administrative Provisions for Delivery of Student Financial
Assistance
Sec. 131. Performance-based organization for the delivery of Federal
student financial assistance.
Sec. 132. Administrative data transparency.
Part E--Lender and Institution Requirements Relating to Education Loans
Sec. 141. Modification of preferred lender arrangements.
Part F--Addressing Sexual Assault
Sec. 151. Addressing sexual assault.
TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
Sec. 201. Repeal.
Sec. 202. Grants for access to high-demand careers.
TITLE III--INSTITUTIONAL AID
Sec. 301. Strengthening institutions.
Sec. 302. Strengthening historically Black colleges and universities.
Sec. 303. Historically Black college and university capital financing.
Sec. 304. Minority Science and Engineering Improvement Program.
Sec. 305. Strengthening historically Black colleges and universities
and other minority-serving institutions.
Sec. 306. General provisions.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
Sec. 401. Federal Pell Grants.
Sec. 402. Federal TRIO programs.
Sec. 403. Gaining early awareness and readiness for undergraduate
programs.
Sec. 404. Special programs for students whose families are engaged in
migrant and seasonal farmwork.
Sec. 405. Child care access means parents in school.
Sec. 406. Repeals.
Sec. 407. Sunset of TEACH grants.
Part B--Federal Family Education Loan Program
Sec. 421. Federal Direct Consolidation Loans.
Sec. 422. Loan rehabilitation.
Sec. 423. Loan forgiveness for teachers.
Sec. 424. Loan forgiveness for service in areas of national need.
Sec. 425. Loan repayment for civil legal assistance attorneys.
Sec. 426. Sunset of cohort default rate and other conforming changes.
Sec. 427. Closed school and other discharges.
Part C--Federal Work-Study Programs
Sec. 441. Purpose; authorization of appropriations.
Sec. 442. Allocation formula.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Community service.
Sec. 447. Work colleges.
Part D--Federal Direct Student Loan Program
Sec. 451. Termination of Federal Direct Loan Program under part D and
other conforming amendments.
Sec. 452. Borrower defenses.
Sec. 453. Administrative expenses.
Sec. 454. Loan cancellation for teachers.
Part E--Federal ONE Loans
Sec. 461. Wind-down of Federal Perkins Loan Program.
Sec. 462. Federal ONE Loan program.
Part F--Need Analysis
Sec. 471. Cost of attendance.
Sec. 472. Simplified needs test.
Sec. 473. Discretion of student financial aid administrators.
Sec. 474. Definitions of total income and assets.
Part G--General Provisions Relating to Student Assistance
Sec. 481. Definitions of academic year and eligible program.
Sec. 482. Programmatic loan repayment rates.
Sec. 483. Master calendar.
Sec. 484. FAFSA Simplification.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations.
Sec. 487. Institutional refunds.
Sec. 488. Information disseminated to prospective and enrolled
students.
Sec. 489. Early awareness of financial aid eligibility.
Sec. 490. Distance education demonstration programs.
Sec. 491. Contents of program participation agreements.
Sec. 492. Regulatory relief and improvement.
Sec. 493. Transfer of allotments.
Sec. 494. Administrative expenses.
Sec. 494A. Repeal of advisory committee.
Sec. 494B. Regional meetings and negotiated rulemaking.
Sec. 494C. Deferral of loan repayment following active duty.
Sec. 494D. Contracts; matching program.
Part H--Program Integrity
Sec. 495. Repeal of and prohibition on State authorization regulations.
Sec. 496. Recognition of accrediting agency or association.
Sec. 497. Eligibility and certification procedures.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Hispanic-serving institutions.
Sec. 502. Promoting postbaccalaureate opportunities for Hispanic
Americans.
Sec. 503. General provisions.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Repeal of assistance program for Institute for International
Public Policy.
Sec. 604. General provisions.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 701. Graduate education programs.
Sec. 702. Repeal of Fund for the Improvement of Postsecondary
Education.
Sec. 703. Programs for students with disabilities.
Sec. 704. Repeal of college access challenge grant program.
TITLE VIII--OTHER REPEALS
Sec. 801. Repeal of additional programs.
TITLE IX--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act of 1986
Sec. 901. Education of the Deaf Act of 1986.
Part B--Tribally Controlled Colleges and Universities Assistance Act of
1978; Dine' College Act
Sec. 911. Tribally Controlled Colleges and Universities Assistance Act
of 1978.
Sec. 912. Dine' College Act.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.).
SEC. 3. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this Act or the amendments made by
this Act, this Act and the amendments made by this Act shall take
effect on the date of enactment of this Act.
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
Part A of title I (20 U.S.C. 1001 et seq.) is amended by striking
section 101 (20 U.S.C. 1001) and inserting the following:
``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
``(a) Institution of Higher Education.--For purposes of this Act,
the term `institution of higher education' means an educational
institution in any State that--
``(1) admits as regular students only persons who--
``(A) have a certificate of graduation from a
school providing secondary education, or the recognized
equivalent of such a certificate, or who meet the
requirements of section 484(d);
``(B) are beyond the age of compulsory school
attendance in the State in which the institution is
located; or
``(C) will be dually or concurrently enrolled in
the institution and a secondary school;
``(2) is legally authorized by the State in which it
maintains a physical location to provide a program of education
beyond secondary education;
``(3)(A) is accredited by a nationally recognized
accrediting agency or association; or
``(B) if not so accredited, is an institution that has been
granted preaccreditation status by such an agency or
association that has been recognized by the Secretary for the
granting of preaccreditation status, and the Secretary has
determined that there is satisfactory assurance that the
institution will meet the accreditation standards of such an
agency or association within a reasonable time; and
``(4) provides--
``(A) an educational program for which the
institution awards a bachelor's degree, graduate
degree, or professional degree;
``(B) not less than a 2-year educational program
which is acceptable for full credit towards a
bachelor's degree; or
``(C) a non-degree program leading to a recognized
educational credential that meets the definition of an
eligible program under section 481(b).
``(b) Additional Limitations.--
``(1) Proprietary institutions of higher education.--
``(A) Length of existence.--A proprietary
institution shall not be considered an institution of
higher education unless such institution has been in
existence for at least 2 years.
``(B) Institutional ineligibility for minority
serving institution programs.--A proprietary
institution shall not be considered an institution of
higher education for the purposes of any program under
title III or V.
``(2) Postsecondary vocational institutions.--A nonprofit
or public institution that offers only non-degree programs
described in subsection (a)(4)(C) shall not be considered an
institution of higher education unless such institution has
been in existence for at least 2 years.
``(3) Limitations based on management.--An institution
shall not be considered an institution of higher education if--
``(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the direction of
the management or policies of the institution, has
filed for bankruptcy; or
``(B) the institution, the institution's owner, or
the institution's chief executive officer has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of Federal funds, or has been judicially determined to
have committed a crime involving the acquisition, use,
or expenditure involving Federal funds.
``(4) Limitation on course of study or enrollment.--An
institution shall not be considered an institution of higher
education if such institution--
``(A) offers more than 50 percent of such
institution's courses by correspondence education,
unless the institution is an institution that meets the
definition in section 3(3)(C) of the Carl D. Perkins
Career and Technical Education Act of 2006;
``(B) enrolls 50 percent or more of the
institution's students in correspondence education
courses, unless the institution is an institution that
meets the definition in section 3(3)(C) of such Act,
except that the Secretary, at the request of the
institution, may waive the applicability of this
subparagraph to the institution for good cause, as
determined by the Secretary in the case of an
institution of higher education that provides a 2- or
4-year program of instruction (or both) for which the
institution awards an associate or baccalaureate
degree, respectively;
``(C) has a student enrollment in which more than
25 percent of the students are incarcerated, except
that the Secretary may waive the limitation contained
in this subparagraph for an institution that provides a
2- or 4-year program of instruction (or both) for which
the institution awards an associate's degree or a
postsecondary certificate, or a bachelor's degree,
respectively; or
``(D) has a student enrollment in which more than
50 percent of the students either do not have a
secondary school diploma or its recognized equivalent,
or do not meet the requirements of section 484(d), and
does not provide a 2- or 4-year program of instruction
(or both) for which the institution awards an
associate's degree or a bachelor's degree,
respectively, except that the Secretary may waive the
limitation contained in this subparagraph if an
institution demonstrates to the satisfaction of the
Secretary that the institution exceeds such limitation
because the institution serves, through contracts with
Federal, State, or local government agencies,
significant numbers of students who do not have a
secondary school diploma or its recognized equivalent
or do not meet the requirements of section 484(d).
``(c) List of Accrediting Agencies.--For purposes of this section,
the Secretary shall publish a list of nationally recognized accrediting
agencies or associations that the Secretary determines, pursuant to
subpart 2 of part H of title IV, to be reliable authority as to the
quality of the education offered.
``(d) Certification.--The Secretary shall certify, for the purposes
of participation in title IV, an institution's qualification as an
institution of higher education in accordance with the requirements of
subpart 3 of part H of title IV.
``(e) Loss of Eligibility.--An institution of higher education
shall not be considered to meet the definition of an institution of
higher education for the purposes of participation in title IV if such
institution is removed from eligibility for funds under title IV as a
result of an action pursuant to part H of title IV.
``(f) Rule of Construction.--Nothing in subsection (a)(2) relating
to State authorization shall be construed to--
``(1) impede or preempt State laws, regulations, or
requirements on how States authorize out-of-State institutions
of higher education; or
``(2) limit, impede, or preclude a State's ability to
collaborate or participate in a reciprocity agreement to permit
an institution within such State to meet any other State's
authorization requirements for out-of-State institutions.''.
SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
Part A of title I (20 U.S.C. 1001 et seq.) is further amended by
striking section 102 (20 U.S.C. 1002) and inserting the following:
``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
``(a) Institutions Outside the United States.--
``(1) In general.--Only for purposes of part D or E of
title IV, the term `institution of higher education' includes
an institution outside the United States (referred to in this
part as a `foreign institution') that is comparable to an
institution of higher education as defined in section 101 and
has been approved by the Secretary for purposes of part D or E
of title IV, consistent with the requirements of section
452(d).
``(2) Qualifications.--Only for the purposes of students
receiving aid under title IV, an institution of higher
education may not qualify as a foreign institution under
paragraph (1), unless such institution--
``(A) is legally authorized to provide an
educational program beyond secondary education by the
education ministry (or comparable agency) of the
country in which the institution is located;
``(B) is not located in a State;
``(C) except as provided with respect to clinical
training offered by the institution under 600.55(h)(1),
section 600.56(b), or section 600.57(a)(2) of title 34,
Code of Federal Regulations (as in effect pursuant to
subsection (b))--
``(i) does not offer any portion of an
educational program in the United States to
students who are citizens of the United States;
``(ii) has no written arrangements with an
institution or organization located in the
United States under which students enrolling at
the foreign institution would take courses from
an institution located in the United States;
and
``(iii) does not allow students to enroll
in any course offered by the foreign
institution in the United States, including
research, work, internship, externship, or
special studies within the United States,
except that independent research done by an
individual student in the United States for not
more than one academic year is permitted, if
the research is conducted during the
dissertation phase of a doctoral program under
the guidance of faculty and the research is
performed at a facility in the United States;
``(D) awards degrees, certificates, or other
recognized educational credentials in accordance with
section 600.54(e) of title 34, Code of Federal
Regulations (as in effect pursuant to subsection (b))
that are officially recognized by the country in which
the institution is located; and
``(E) meets the applicable requirements of
subsection (b).
``(3) Institutions With Locations In and Outside the United
States.--In a case of an institution of higher education consisting of
two or more locations offering all or part of an educational program
that are directly or indirectly under common ownership and that enrolls
students both within a State and outside the United States, and the
number of students who would be eligible to receive funds under title
IV attending locations of such institution outside the United States,
is at least twice the number of students enrolled within a State--
``(A) the locations outside the United States shall apply to
participate as one or more foreign institutions and shall meet the
requirements of paragraph (1) of this definition, and the other
requirements of this part; and
``(B) the locations within a State shall be treated as an
institution of higher education under section 101.
``(b) Treatment of Certain Regulations.--
``(1) Force and effect.--
``(A) In general.--The provisions of title 34, Code
of Federal Regulations, referred to in subparagraph
(B), as such provisions were in effect on the day
before the date of the enactment of the PROSPER Act,
shall have the force and effect of enacted law until
changed by such law and are deemed to be incorporated
in this subsection as though set forth fully in this
subsection.
``(B) Applicable provisions.--The provisions of
title 34, Code of Federal Regulations, referred to in
this subparagraph are the following:
``(i) Subject to paragraph (2)(A), section
600.41(e)(3).
``(ii) Subject to paragraph (2)(B), section
600.52.
``(iii) Subject to paragraph (2)(C),
section 600.54, except that paragraph (1) of
subsection (a) of such section shall have no
force or effect.
``(iv) Subject to subparagraphs (D) and (E)
of paragraph (2), section 600.55, except that
paragraph (4) of subsection (f) of such section
shall have no force or effect.
``(v) Section 600.56.
``(vi) Subject to paragraph (2)(F), section
600.57.
``(vii) Subject to subparagraphs (G) and
(H) of paragraph (2), section 668.23(h), except
that clause (iii) of paragraph (1) of such
section shall have no force or effect.
``(viii) Section 668.5.
``(C) Application to federal one loans.--With
respect to the provisions of title 34, Code of Federal
Regulations, referred to subparagraph (B), as modified
by paragraph (2) any reference to a loan made under
part D of title IV shall also be treated as a reference
to a loan made under part E of title IV.
``(2) Modifications.--The following shall apply to the
provisions of title 34, Code of Federal Regulations, referred
to in paragraph (1)(B):
``(A) Notwithstanding section 600.41(e)(3) of title
34, Code of Federal Regulations (as in effect pursuant
to paragraph (1)), if the basis for the loss of
eligibility of a foreign graduate medical school to
participate in programs under title IV is one or more
annual pass rates on the United States Medical
Licensing Examination below the threshold required in
subparagraph (D) the sole issue is whether the
aggregate pass rate for the preceding calendar year
fell below that threshold. For purposes of the
preceding sentence, in the case of a foreign graduate
medical school that opted to have the Educational
Commission for Foreign Medical Graduates calculate and
provide the pass rates directly to the Secretary for
the preceding calendar year as permitted under section
600.55(d)(2) of title 34, Code of Federal Regulations
(as in effect pursuant to paragraph (1)), in lieu of
the foreign graduate medical school providing pass rate
data to the Secretary under section 600.55(d)(1)(iii)
of title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), the Educational Commission
for Foreign Medical Graduates' calculations of the
school's rates are conclusive; and the presiding
official has no authority to consider challenges to the
computation of the rate or rates by the Educational
Commission for Foreign Medical Graduates.
``(B) Notwithstanding section 600.52 of title 34,
Code of Federal Regulations (as in effect pursuant to
paragraph (1)), in this Act, the term `foreign
institution' means an institution described in
subsection (a).
``(C) Notwithstanding section 600.54(c) of title
34, Code of Federal Regulations (as in effect pursuant
to paragraph (1)), to be eligible to participate in
programs under title IV, foreign institution may not
enter into a written arrangement under which an
institution or organizations that is not eligible to
participate in programs under title IV provides more
than 25 percent of the program of study for one or more
of the eligible foreign institution's programs.
``(D) Notwithstanding section 600.55(f)(1)(ii) of
title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), for a foreign graduate
medical school outside of Canada, for Step 1, Step 2-
CS, and Step 2-CK, or the successor examinations, of
the United States Medical Licensing Examination
administered by the Educational Commission for Foreign
Medical Graduate, at least 75 percent of the school's
students and graduates who receive or have received
title IV funds in order to attend that school, and who
completed the final of these three steps of the
examination in the year preceding the year for which
any of the school's students seeks a loan under title
IV shall have received an aggregate passing score on
the exam as a whole; or except as provided in section
600.55(f)(2) of title 34, Code of Federal Regulations
(as in effect pursuant to paragraph (1)), for no more
than two consecutive years, at least 70 percent of the
individuals who were students or graduates of the
graduate medical school outside the United States or
Canada (who receive or have received title IV funds in
order to attend that school) taking the United States
Medical Licensing Examination exams in the year
preceding the year for which any of the school's
students seeks a loan under title IV shall have
received an aggregate passing score on the exam as a
whole.
``(E) Notwithstanding 600.55(h)(2) of title 34,
Code of Federal Regulations (as in effect pursuant to
paragraph (1)), not more than 25 percent of the
graduate medical educational program offered to United
States students, other than the clinical training
portion of the program, may be located outside of the
country in which the main campus of the foreign
graduate medical school is located.
``(F) Notwithstanding section 600.57(a)(5) of title
34, Code of Federal Regulations (as in effect pursuant
to paragraph (1)), a nursing school shall reimburse the
Secretary for the cost of any loan defaults for current
and former students during the previous fiscal year.
``(G) Notwithstanding section 668.23(h)(1)(ii), of
title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), a foreign institution that
received $500,000 or more in funds under title IV
during its most recently completed fiscal year shall
submit, in English, for each most recently completed
fiscal year in which it received such funds, audited
financial statements prepared in accordance with
generally accepted accounting principles of the
institution's home country provided that such
accounting principles are comparable to the
International Financial Reporting Standards.
``(H) Notwithstanding section 668.23(h)(1)(ii), of
title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), only in a case in which the
accounting principles of an institution's home country
are not comparable to International Financial Reporting
Standards shall the institution be required to submit
corresponding audited financial statements that meet
the requirements of section 668.23(d) of title 34, Code
of Federal Regulations (as in effect pursuant to
paragraph (1)).
``(c) Special Rules.--
``(1) In general.--A foreign graduate medical school at
which student test passage rates are below the minimum
requirements set forth in subsection (b)(2)(D) for each of the
two most recent calendar years for which data are available
shall not be eligible to participate in programs under part D
or E of title IV in the fiscal year subsequent to that
consecutive two year period and such institution shall regain
eligibility to participate in programs under such part only
after demonstrating compliance with requirements under section
600.55 of title 34, Code of Federal Regulations (as in effect
pursuant to subsection (b)) for one full calendar year
subsequent to the fiscal year the institution became ineligible
unless, within 30 days of receiving notification from the
Secretary of the loss of eligibility under this paragraph, the
institution appeals the loss of its eligibility to the
Secretary. The Secretary shall issue a decision on any such
appeal within 45 days after its submission. Such decision may
permit the institution to continue to participate in programs
under part D or E of title IV, if--
``(A) the institution demonstrates to the
satisfaction of the Secretary that the test passage
rates on which the Secretary has relied are not
accurate, and that the recalculation of such rates
would result in rates that exceed the required minimum
for any of these two calendar years; or
``(B) there are, in the judgement of the Secretary,
mitigating circumstances that would make the
application of this paragraph inequitable.
``(2) Student eligibility.--If, pursuant to this
subsection, a foreign graduate medical school loses eligibility
to participate in the programs under part D or E of title IV,
then a student at such institution may, notwithstanding such
loss of eligibility, continue to be eligible to receive a loan
under such part while attending such institution for the
academic year succeeding the academic year in which such loss
of eligibility occurred.
``(3) Treatment of clinical training programs.--
``(A) In general.--Clinical training programs
operated by a foreign graduate medical school with an
accredited hospital or clinic in the United States or
at an institution in Canada accredited by the Liaison
Committee on Medical Education shall be deemed to be
approved and shall not require the prior approval of
the Secretary.
``(B) On-site evaluations.--Any part of a clinical
training program operated by a foreign graduate medical
school located in a foreign country other than the
country in which the main campus is located, in the
United States, or at an institution in Canada
accredited by the Liaison Committee on Medical
Education, shall not require an on-site evaluation or
specific approval by the institution's medical
accrediting agency if the location is a teaching
hospital accredited by and located within a foreign
country approved by the National Committee on Foreign
Medical Education and Accreditation.
``(d) Failure To Release Information.--An institution outside the
United States that does not provide to the Secretary such information
as may be required by this section shall be ineligible to participate
in the loan program under part D or E of title IV.
``(e) Online Education.--Notwithstanding section 481(b)(2), an
eligible program described in section 600.54 of title 34, Code of
Federal Regulations (as in effect pursuant to subsection (b)) may not
offer more than 50 percent of courses through telecommunications.''.
SEC. 103. ADDITIONAL DEFINITIONS.
(a) Diploma Mill.--Section 103(5)(B) (20 U.S.C. 1003(5)(B)) is
amended by striking ``section 102'' and inserting ``section 101 or
102''.
(b) Correspondence Education.--Section 103(7) (20 U.S.C. 1003(7))
is amended to read as follows:
``(7) Correspondence education.--The term `correspondence
education' means education that is provided by an institution
of higher education under which--
``(A) the institution provides instructional
materials (including examinations on the materials) by
mail or electronic transmission to students who are
separated from the instructor; and
``(B) interaction between the institution and the
student is limited and the academic instruction by
faculty is not regular and substantive, as assessed by
the institution's accrediting agency or association
under section 496.''.
(c) Early Childhood Education Program.--Section 103(8) (20 U.S.C.
1003(8)) is amended to read as follows:
``(8) Early childhood education program.--The term `early
childhood education program' means a program--
``(A) that serves children of a range of ages from
birth through age five that addresses the children's
cognitive (including language, early literacy, and
early mathematics), social, emotional, and physical
development; and
``(B) that is--
``(i) a Head Start program or an Early Head
Start program carried out under the Head Start
Act (42 U.S.C. 9831 et seq.), including a
migrant or seasonal Head Start program, an
Indian Head Start program, or a Head Start
program or an Early Head Start program that
also receives State funding;
``(ii) a State licensed or regulated child
care program;
``(iii) a State-funded prekindergarten or
child care program;
``(iv) a program authorized under section
619 of the Individuals with Disabilities
Education Act or part C of such Act; or
``(v) a program operated by a local
educational agency.''.
(d) Nonprofit.--Section 103(13) (20 U.S.C. 1003(13)) is amended to
read as follows:
``(13) Nonprofit.--
``(A) The term `nonprofit', when used with respect
to a school, agency, organization, or institution means
a school, agency, organization, or institution owned
and operated by one or more nonprofit corporations or
associations, no part of the net earnings of which
inures, or may lawfully inure, to the benefit of any
private shareholder or individual.
``(B) The term `nonprofit', when used with respect
to foreign institution means--
``(i) an institution that is owned and
operated only by one or more nonprofit
corporations or associations; and
``(ii)(I) if a recognized tax authority of
the institution's home country is recognized by
the Secretary for purposes of making
determinations of an institution's nonprofit
status for purposes of title IV, the
institution is determined by that tax authority
to be a nonprofit educational institution; or
``(II) if no recognized tax authority of
the institution's home country is recognized by
the Secretary for purposes of making
determinations of an institution's nonprofit
status for purposes of title IV, the foreign
institution demonstrates to the satisfaction of
the Secretary that it is a nonprofit
educational institution.''.
(e) Competency-Based Education; Competency-based Education
Program.--Section 103 (20 U.S.C. 1003) is amended by adding at the end
the following:
``(25) Competency-based education; competency-based
education program.--
``(A) Competency-based education.--Except as
otherwise provided, the term `competency-based
education' means education that--
``(i) measures academic progress and
attainment--
``(I) by direct assessment of a
student's level of mastery of
competencies;
``(II) by expressing a student's
level of mastery of competencies in
terms of equivalent credit or clock
hours; or
``(III) by a combination of the
methods described in subclauses (I) or
(II) and credit or clock hours; and
``(ii) provides the educational content,
activities, and resources, including
substantive instructional interaction,
including by faculty, and regular support by
the institution, necessary to enable students
to learn or develop what is required to
demonstrate and attain mastery of such
competencies, as assessed by the accrediting
agency or association of the institution of
higher education.
``(B) Competency-based education program.--Except
as otherwise provided, the term `competency-based
education program' means a postsecondary program
offered by an institution of higher education that--
``(i) provides competency-based education,
which upon a student's demonstration or mastery
of a set of competencies identified and
required by the institution, leads to or
results in the award of a certificate, degree,
or other recognized educational credential;
``(ii) has a method to differentiate
between knowledge that a student acquired prior
to enrollment in the competency-based education
program and knowledge that the student acquired
as a result of enrollment in such program; and
``(iii) is organized in such a manner that
an institution can determine, based on the
method of measurement selected by the
institution under subparagraph (A)(i), what
constitutes a full-time, three-quarter time,
half-time, and less than half-time workload for
the purposes of awarding and administering
assistance under title IV of this Act, or
assistance provided under another provision of
Federal law to attend an institution of higher
education.
``(C) Competency defined.--In this paragraph, the
term `competency' means the knowledge, skill, or
characteristic demonstrated by a student in a subject
area.''.
(f) Pay for Success Initiative.--Section 103 (20 U.S.C. 1003) is
amended by adding at the end the following:
``(26) Pay for success initiative.--The term `pay for
success initiative' has the meaning given the term in section
8101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).''.
(g) Evidence-based.--Section 103 (20 U.S.C. 1003) is amended by
adding at the end the following:
``(27) Evidence-based.--The term `evidence-based' has the
meaning given the term in section 8101(21)(A) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801(21)(A)),
except that such term shall also apply to institutions of
higher education.''.
SEC. 104. REGULATORY RELIEF.
(a) Regulations Repealed.--
(1) Repeal.--The following regulations (including any
supplement or revision to such regulations) are repealed and
shall have no legal effect:
(A) Definition of credit hour.--The definition of
the term ``credit hour'' in section 600.2 of title 34,
Code of Federal Regulations, as added by the final
regulations published by the Department of Education in
the Federal Register on October 29, 2010 (75 Fed. Reg.
66946).
(B) Gainful employment.--Sections 600.10(c),
600.20(d), 668.401 through 668.415, 668.6, and 668.7,
of title 34, Code of Federal Regulations, as added or
amended by the final regulations published by the
Department of Education in the Federal Register on
October 31, 2014 (79 Fed. Reg. 64889 et seq.).
(C) Borrower defense.--Sections 668.41, 668.90,
668.93, 668.171, 668.175, 674.33, 682.211, 682.402(d),
682.405, 682.410, 685.200, 685.205, 685.206,
685.212(k), 685.214, 685.215, 685.222, appendix A to
subpart B of part 685, 685.300, 685.308, of title 34,
Code of Federal Regulations, as added or amended by the
final regulations published by the Department of
Education in the Federal Register on November 1, 2016
(81 Fed. Reg. 75926 et seq.).
(2) Effect of repeal.--To the extent that regulations
repealed--
(A) by subparagraph (A) or subparagraph (B) of
paragraph (1) amended regulations that were in effect
on June 30, 2011, the provisions of the regulations
that were in effect on June 30, 2011, and were so
amended are restored and revived as if the regulations
repealed by such subparagraph had not taken effect; and
(B) by paragraph (1)(C) amended regulations that
were in effect on October 31, 2016, the provisions of
the regulations that were in effect on October 31,
2016, and were so amended are restored and revived as
if the regulations repealed by paragraph (1)(C) had not
taken effect.
(b) Certain Regulations and Other Actions Prohibited.--
(1) Gainful employment.--The Secretary of Education shall
not, on or after the date of enactment of this Act, promulgate
or enforce any regulation or rule with respect to the
definition or application of the term ``gainful employment''
for any purpose under the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
(2) Credit hour.--The Secretary of Education shall not, on
or after the date of enactment of this Act, promulgate or
enforce any regulation or rule with respect to the definition
of the term ``credit hour'' for any purpose under the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).
(3) Postsecondary institution ratings system.--The
Secretary of Education shall not carry out, develop, refine,
promulgate, publish, implement, administer, or enforce a
postsecondary institution ratings system or any other
performance system to rate institutions of higher education (as
defined in section 101 or 102 of the Higher Education Act of
1965 (20 U.S.C. 1001; 1002)).
PART B--ADDITIONAL GENERAL PROVISIONS
SEC. 111. FREE SPEECH PROTECTIONS.
Section 112 (20 U.S.C. 1011a) is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (2) as paragraph
(3); and
(B) by inserting after paragraph (1) the following:
``(2) It is the sense of Congress that--
``(A) free speech zones and restrictive speech codes are
inherently at odds with the freedom of speech guaranteed by the
First Amendment of the Constitution; and
``(B) no public institution directly or indirectly
receiving financial assistance under this Act should restrict
the speech of such institution's students through such zones or
codes.'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(3) by inserting after subsection (a), the following:
``(b) Disclosure of Free Speech Policies.--No institution of higher
education shall be eligible to receive funds under this Act, including
participation in any program under title IV, unless the institution
certifies to the Secretary that the institution has annually disclosed
to current and prospective students any policies held by the
institutions related to protected speech on campus, including policies
limiting where and when such speech may occur.''.
SEC. 112. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
Section 114 (20 U.S.C. 1011c) is amended--
(1) by striking ``section 102'' each place it appears and
inserting ``section 101'';
(2) in subsection (b)--
(A) in paragraph (3), by striking ``Except as
provided in paragraph (5), the term'' and inserting
``The term'';
(B) by striking paragraph (5) and inserting the
following:
``(5) Secretarial appointees.--The Secretary may remove any
member who was appointed under paragraph (1)(A) by a
predecessor of the Secretary and may fill the vacancy created
by such removal in accordance with paragraphs (3) and (4).''.
(3) in subsection (c)--
(A) in paragraph (2), by adding ``and'' at the end;
(B) in paragraph (3) by striking the semicolon at
the end an inserting a period; and
(C) by striking paragraphs (4) through (6);
(4) in subsection (e)(2)(D) by striking ``, including any
additional functions established by the Secretary through
regulation''; and
(5) in subsection (f), by striking ``September 30, 2017''
and inserting ``September 30, 2024''.
SEC. 113. REPEAL OF CERTAIN REPORTING REQUIREMENTS.
(a) Repeals.--The following provisions of the Higher Education Act
of 1965 (20 U.S.C. 1001 et seq.) are repealed:
(1) Section 117 (20 U.S.C. 1011f).
(2) Section 119 (20 U.S.C. 1011h).
(b) Conforming Amendments.--
(1) section 118 is redesignated as section 117;
(2) sections 120, 121, 122, and 123 are redesignated as
sections 118, 119, 120, and 121, respectively; and
(3) section 485(f)(1)(H) (20 U.S.C. 1092(f)(1)(H)) is
amended by striking ``section 120'' and inserting ``section
118''.
SEC. 114. PROGRAMS ON DRUG AND ALCOHOL ABUSE PREVENTION.
Section 118 (as so redesignated) is amended to read as follows:
``SEC. 118. DRUG AND ALCOHOL ABUSE PREVENTION.
``(a) Required Programs.--Each institution of higher education
participating in any program under this Act shall adopt and implement a
program to prevent the use of illicit drugs and the abuse of alcohol by
students and employees that, at a minimum, includes the annual
distribution to each student and employee of--
``(1) institutional standards of conduct and sanctions that
clearly prohibit and address the unlawful possession, use, or
distribution of illicit drugs and alcohol by students and
employees; and
``(2) the description of any drug or alcohol counseling,
treatment, rehabilitation, or re-entry programs that are
available to students or employees.
``(b) Information Availability.--Each institution of higher
education described in subsection (a) shall, upon request, make
available to the Secretary and to the public a copy of the
institutional standards described under subsection (a)(1) and
information regarding any programs described in subsection (a)(2).''.
SEC. 115. CAMPUS ACCESS FOR RELIGIOUS GROUPS.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 114 of this part) is amended by adding at the end the
following:
``SEC. 122. CAMPUS ACCESS FOR RELIGIOUS GROUPS.
``None of the funds made available under this Act may be provided
to any public institution of higher education that denies to a
religious student organization any right, benefit, or privilege that is
generally afforded to other student organizations at the institution
(including full access to the facilities of the institution and
official recognition of the organization by the institution) because of
the religious beliefs, practices, speech, membership standards, or
standards of conduct of the religious student organization.''.
SEC. 116. SECRETARIAL PROHIBITIONS.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 115 of this part) is amended by adding at the end the
following:
``SEC. 123. SECRETARIAL PROHIBITIONS.
``(a) In General.--Nothing in this Act shall be construed to
authorize or permit the Secretary to promulgate any rule or regulation
that exceeds the scope of the explicit authority granted to the
Secretary under this Act.
``(b) Definitions.--The Secretary shall not define any term that is
used in this Act in a manner that is inconsistent with the scope of
this Act, including through regulation or guidance.
``(c) Requirements.--The Secretary shall not impose, on an
institution or State as a condition of participation in any program
under this Act, any requirement that exceeds the scope of the
requirements explicitly set forth in this Act for such program.''.
SEC. 117. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 116 of this part) is further amended by adding at the end
the following:
``SEC. 124. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.
``(a) In General.--Notwithstanding any other provision of law, no
government entity shall take any adverse action against an institution
of higher education that receives funding under title IV, if such
adverse action--
``(1)(A) is being taken by a government entity that--
``(i) is a department, agency, or instrumentality
of the Federal Government; or
``(ii) receives Federal funds; or
``(B) would affect commerce with foreign nations, among the
several States, or with Indian Tribes; and
``(2) has the effect of prohibiting or penalizing the
institution for acts or omissions by the institution that are
in furtherance of its religious mission or are related to the
religious affiliation of the institution.
``(b) Assertion by Institution.--An actual or threatened violation
of subsection (a) may be asserted by an institution of higher education
that receives funding under title IV as a claim or defense in a
proceeding before any court. The court shall grant any appropriate
equitable relief, including injunctive or declaratory relief.
``(c) Rule of Construction.--Nothing in this section shall be
construed to alter or amend--
``(1) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.);
``(2) section 182 of the Elementary and Secondary Education
Amendments Act of 1966 (42 U.S.C. 2000d-5); or
``(3) section 2 of the Elementary and Secondary Education
Amendments Act of 1969 (42 U.S.C. 2000d-6)
``(d) Definitions.--In this section:
``(1) Adverse action.--The term `adverse action' includes,
with respect to an institution of higher education or the past,
current, or prospective students of such institution--
``(A) the denial or threat of denial of funding,
including grants, scholarships, or loans;
``(B) the denial or threat of denial of access to
facilities or programs;
``(C) the withholding or threat of withholding of
any licenses, permits, certifications, accreditations,
contracts, cooperative agreements, grants, guarantees,
tax-exempt status, or exemptions; or
``(D) any other penalty or denial, or threat of
such other penalty or denial, of an otherwise available
benefit.
``(2) Government entity.--The term `government entity'
means--
``(A) any department, agency, or instrumentality of
the Federal Government;
``(B) a State or political subdivision of a State,
or any agency or instrumentality thereof; and
``(C) any interstate or other inter-governmental
entity.
``(3) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101 or 102.
``(4) Religious mission.--The term `religious mission'
includes an institution of higher education's religious tenets,
beliefs, or teachings, and any policies or decisions related to
such tenets, beliefs, or teachings (including any policies or
decisions concerning housing, employment, curriculum, self-
governance, or student admission, continuing enrollment, or
graduation).''.
PART C--COST OF HIGHER EDUCATION
SEC. 121. COLLEGE DASHBOARD WEBSITE.
(a) Establishment.--Section 132 (20 U.S.C. 1015a) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following new paragraph:
``(1) College dashboard website.--The term `College
Dashboard website' means the College Dashboard website required
under subsection (d).''.
(B) in paragraph (2), by striking ``first-time,'';
(C) in paragraph (3), in the matter preceding
subparagraph (A), by striking ``first-time,''; and
(D) in paragraph (4), by striking ``first-time,'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``first-time,'';
and
(B) in paragraph (2), by striking ``first-time,'';
(3) by striking subsections (c) through (g), (j), and (l);
(4) by redesignating subsections (h), (i), and (k) as
subsections (c), (d), and (e), respectively; and
(5) by striking subsection (d) (as so redesignated) and
inserting the following new subsection:
``(d) Consumer Information.--
``(1) Availability of title iv institution information.--
The Secretary shall develop and make publicly available a
website to be known as the `College Dashboard website' in
accordance with this section and prominently display on such
website, in simple, understandable, and unbiased terms for the
most recent academic year for which satisfactory data are
available, the following information with respect to each
institution of higher education that participates in a program
under title IV:
``(A) A link to the website of the institution.
``(B) An identification of the type of institution
as one of the following:
``(i) A four-year public institution of
higher education.
``(ii) A four-year private, nonprofit
institution of higher education.
``(iii) A four-year private, proprietary
institution of higher education.
``(iv) A two-year public institution of
higher education.
``(v) A two-year private, nonprofit
institution of higher education.
``(vi) A two-year private, proprietary
institution of higher education.
``(vii) A less than two-year public
institution of higher education.
``(viii) A less than two-year private,
nonprofit institution of higher education.
``(ix) A less than two-year private,
proprietary institution of higher education.
``(C) The number of students enrolled at the
institution--
``(i) as undergraduate students, if
applicable; and
``(ii) as graduate students, if applicable.
``(D) The student-faculty ratio.
``(E) The percentage of degree-seeking or
certificate-seeking undergraduate students enrolled at
the institution who obtain a degree or certificate
within--
``(i) 100 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled;
``(ii) 150 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled; and
``(iii) 200 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled.
``(F)(i) The average net price per year for
undergraduate students enrolled at the institution who
received Federal student financial aid under title IV
based on dependency status and an income category
selected by the user of the College Dashboard website
from a list containing the following income categories:
``(I) $0 to $30,000.
``(II) $30,001 to $48,000.
``(III) $48,001 to $75,000.
``(IV) $75,001 to $110,000.
``(V) $110, 001 to $150,000.
``(VI) Over $150,000.
``(ii) A link to the net price calculator for such
institution.
``(G) The percentage of undergraduate and graduate
students who obtained a certificate or degree from the
institution who borrowed Federal student loans--
``(i) set forth separately for each
educational program offered by the institution;
and
``(ii) made available in a format that
allows a user of the College Dashboard website
to view such percentage by selecting from a
list of such educational programs.
``(H) The average Federal student loan debt
incurred by a student who obtained a certificate or
degree in an educational program from the institution
and who borrowed Federal student loans in the course of
obtaining such certificate or degree--
``(i) set forth separately for each
educational program offered by the institution;
and
``(ii) made available in a format that
allows a user of the College Dashboard website
to view such student loan debt information by
selecting from a list of such educational
programs.
``(I) The median earnings of students who obtained
a certificate or degree in an educational program from
the institution and who received Federal student
financial aid under title IV in the course of obtaining
such certificate or degree--
``(i) in the fifth and tenth years
following the year in which the students
obtained such certificate or degree;
``(ii) set forth separately by educational
program; and
``(iii) made available in a format that
allows a user of the College Dashboard website
to view such median earnings information by
selecting from a list of such educational
programs.
``(J) A link to the webpage of the institution
containing campus safety data with respect to such
institution.
``(2) Additional information.--The Secretary shall publish
on websites that are linked to through the College Dashboard
website, for the most recent academic year for which
satisfactory data is available, the following information with
respect to each institution of higher education that
participates in a program under title IV:
``(A) Enrollment.--The following enrollment
information:
``(i) The percentages of male and female
undergraduate students enrolled at the
institution.
``(ii) The percentages of undergraduate
students enrolled at the institution--
``(I) full-time; and
``(II) less than full-time.
``(iii) In the case of an institution other
than an institution that provides all courses
and programs through online education, of the
undergraduate students enrolled at the
institution--
``(I) the percentage of such
students who are residents of the State
in which the institution is located;
``(II) the percentage of such
students who are not residents of such
State; and
``(III) the percentage of such
students who are international
students.
``(iv) The percentages of undergraduate
students enrolled at the institution,
disaggregated by--
``(I) race and ethnic background;
``(II) classification as a student
with a disability;
``(III) recipients of a Federal
Pell Grant;
``(IV) recipients of assistance
under a tuition assistance program
conducted by the Department of Defense
under section 1784a or 2007 of title
10, United States Code, or other
authorities available to the Department
of Defense or veterans' education
benefits (as defined in section 480);
and
``(V) recipients of a Federal
student loan.
``(B) Completion.--The information required under
paragraph (1)(E), disaggregated by--
``(i) recipients of a Federal Pell Grant;
``(ii) race and ethnic background;
``(iii) classification as a student with a
disability;
``(iv) recipients of assistance under a
tuition assistance program conducted by the
Department of Defense under section 1784a or
2007 of title 10, United States Code, or other
authorities available to the Department of
Defense or veterans' education benefits (as
defined in section 480); and
``(v) recipients of a Federal student loan.
``(C) Costs.--The following cost information:
``(i) The cost of attendance for full-time
undergraduate students enrolled in the
institution who live on campus.
``(ii) The cost of attendance for full-time
undergraduate students enrolled in the
institution who live off campus.
``(iii) The cost of tuition and fees for
full-time undergraduate students enrolled in
the institution.
``(iv) The cost of tuition and fees per
credit hour or credit hour equivalency for
undergraduate students enrolled in the
institution less than full time.
``(v) In the case of a public institution
of higher education (other than an institution
described in clause (vi)) and notwithstanding
subsection (b)(1), the costs described in
clauses (i) and (ii) for--
``(I) full-time students enrolled
in the institution who are residents of
the State in which the institution is
located; and
``(II) full-time students enrolled
in the institution who are not
residents of such State.
``(vi) In the case of a public institution
of higher education that offers different
tuition rates for students who are residents of
a geographic subdivision smaller than a State
and students not located in such geographic
subdivision and notwithstanding subsection
(b)(1), the costs described in clauses (i) and
(ii) for--
``(I) full-time students enrolled
at the institution who are residents of
such geographic subdivision;
``(II) full-time students enrolled
at the institution who are residents of
the State in which the institution is
located but not residents of such
geographic subdivision; and
``(III) full-time students enrolled
at the institution who are not
residents of such State.
``(D) Financial aid.--The following information
with respect to financial aid:
``(i) The average annual grant amount
(including Federal, State, and institutional
aid) awarded to an undergraduate student
enrolled at the institution who receives grant
aid, and the percentage of undergraduate
students receiving such aid.
``(ii) The percentage of undergraduate
students enrolled at the institution receiving
Federal, State, and institutional grants,
student loans, and any other type of student
financial assistance known by the institution,
provided publicly or through the institution,
such as Federal work-study funds.
``(iii) The loan repayment rate (as defined
in section 481B) for each educational program
at such institution.
``(3) Other data matters.--
``(A) Completion data.--The Commissioner of
Education Statistics shall ensure that the information
required under paragraph (1)(E) includes information
with respect to all students at an institution,
including students other than first-time, full-time
students and students who transfer to another
institution, in a manner that the Commissioner
considers appropriate.
``(B) Adjustment of income categories.--The
Secretary may annually adjust the range of each of the
income categories described in paragraph (1)(F) to
account for a change in the Consumer Price Index for
All Urban Consumers as determined by the Bureau of
Labor Statistics if the Secretary determines an
adjustment is necessary.
``(4) Institutional comparison.--The Secretary shall
include on the College Dashboard website a method for users to
easily compare the information required under paragraphs (1)
and (2) between institutions.
``(5) Updates.--
``(A) Data.--The Secretary shall update the College
Dashboard website not less than annually.
``(B) Technology and format.--The Secretary shall
regularly assess the format and technology of the
College Dashboard website and make any changes or
updates that the Secretary considers appropriate.
``(6) Consumer testing.--
``(A) In general.--In developing and maintaining
the College Dashboard website, the Secretary, in
consultation with appropriate departments and agencies
of the Federal Government, shall conduct consumer
testing with appropriate persons, including current and
prospective college students, family members of such
students, institutions of higher education, and
experts, to ensure that the College Dashboard website
is usable and easily understandable and provides useful
and relevant information to students and families.
``(B) Recommendations for changes.--The Secretary
shall submit to the authorizing committees any
recommendations that the Secretary considers
appropriate for changing the information required to be
provided on the College Dashboard website under
paragraphs (1) and (2) based on the results of the
consumer testing conducted under subparagraph (A).
``(7) Provision of appropriate links to prospective
students after submission of FAFSA.--The Secretary shall
provide to each student who submits a Free Application for
Federal Student Aid described in section 483 a link to the
webpage of the College Dashboard website that contains the
information required under paragraph (1) for each institution
of higher education such student includes on such Application.
``(8) Interagency coordination.--The Secretary, in
consultation with each appropriate head of a department or
agency of the Federal Government, shall ensure to the greatest
extent practicable that any information related to higher
education that is published by such department or agency is
consistent with the information published on the College
Dashboard website.
``(9) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the Integrated
Postsecondary Education Data System, including by reducing
institutional reporting burden and improving the timeliness of
the data collected.
``(10) Data privacy.--The Secretary shall ensure any
information made available under this section is made available
in accordance with section 444 of the General Education
Provisions Act (commonly known as the `Family Educational
Rights and Privacy Act of 1974').''.
(b) Conforming Amendments.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.), as amended by subsection (a) of this section, is
further amended, by striking ``College Navigator'' each place it
appears and inserting ``College Dashboard''.
(c) References.--Any reference in any law (other than this Act),
regulation, document, record, or other paper of the United States to
the College Navigator website shall be considered to be a reference to
the College Dashboard website.
(d) Development.--The Secretary of Education shall develop and
publish the College Dashboard website required under section 132 (20
U.S.C. 1015a), as amended by this section, not later than one year
after the date of the enactment of this Act.
(e) College Navigator Website Maintenance.--The Secretary shall
maintain the College Navigator website required under section 132 (20
U.S.C. 1015a), as in effect the day before the date of the enactment of
this Act, in the manner required under the Higher Education Act of
1965, as in effect on such day, until the College Dashboard website
referred to in subsection (d) is complete and publicly available on the
Internet.
SEC. 122. NET PRICE CALCULATORS.
Subsection (c) of section 132 (20 U.S.C. 1015a), as so redesignated
by section 121(a)(4) of this Act, is amended--
(1) by redesignating paragraph (4) as paragraph (6); and
(2) by inserting after paragraph (3) the following new
paragraphs:
``(4) Minimum requirements for net price calculators.--Not
later than 1 year after the date of the enactment of the
PROSPER Act, a net price calculator for an institution of
higher education shall meet the following requirements:
``(A) The link for the calculator shall--
``(i) be clearly labeled as a net price
calculator and prominently, clearly, and
conspicuously posted in locations on the
website of such institution where information
on costs and aid is provided and any other
location that the institution considers
appropriate; and
``(ii) match in size and font to the other
prominent links on the webpage where the link
for the calculator is displayed.
``(B) The webpage displaying the results for the
calculator shall specify at least the following
information:
``(i) The net price (as calculated under
subsection (a)(3)) for such institution, which
shall be the most visually prominent figure on
the results screen.
``(ii) Cost of attendance, including--
``(I) tuition and fees;
``(II) average annual cost of room
and board for the institution for a
full-time undergraduate student
enrolled in the institution;
``(III) average annual cost of
books and supplies for a full-time
undergraduate student enrolled in the
institution; and
``(IV) estimated cost of other
expenses (including personal expenses
and transportation) for a full-time
undergraduate student enrolled in the
institution.
``(iii) Estimated total need-based grant
aid and merit-based grant aid from Federal,
State, and institutional sources that may be
available to a full-time undergraduate student.
``(iv) Percentage of the full-time
undergraduate students enrolled in the
institution that received any type of grant aid
described in clause (iii).
``(v) The disclaimer described in paragraph
(6).
``(vi) In the case of a calculator that--
``(I) includes questions to
estimate the eligibility of a student
or prospective student for veterans'
education benefits (as defined in
section 480) or educational benefits
for active duty service members, such
benefits are displayed on the results
screen in a manner that clearly
distinguishes such benefits from the
grant aid described in clause (iii); or
``(II) does not include questions
to estimate eligibility for the
benefits described in subclause (I),
the results screen indicates that
certain students (or prospective
students) may qualify for such benefits
and includes a link to information
about such benefits.
``(C) The institution shall populate the calculator
with data from an academic year that is not more than 2
academic years prior to the most recent academic year.
``(5) Prohibition on use of data collected by the net price
calculator.--A net price calculator for an institution of
higher education shall--
``(A) clearly indicate which questions are required
to be completed for an estimate of the net price from
the calculator;
``(B) in the case of a calculator that requests
contact information from users, clearly mark such
requests as optional and provide for an estimate of the
net price from the calculator without requiring users
to enter such information; and
``(C) prohibit any personally identifiable
information provided by users from being sold or made
available to third parties.''.
SEC. 123. TEXT BOOK INFORMATION.
Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amended by striking
``section 102'' and inserting ``section 101 or 102''.
PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
Section 141 (20 U.S.C. 1018) is amended--
(1) in subsection (a)(2)--
(A) by redesignating subparagraphs (F) and (G) as
subparagraphs (H) and (I), respectively; and
(B) by inserting after subparagraph (E) the
following:
``(F) to maximize transparency in the operation of
Federal student financial assistance programs;
``(G) to maximize stakeholder engagement in the
operation of and accountability for such programs;'';
(2) in subsection (b)--
(A) in paragraph (1)(C)--
(i) in clause (i), by striking ``and'' at
the end;
(ii) in clause (ii), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(iii) acquiring senior managers and other
personnel with demonstrated management ability
and expertise in consumer lending.'';
(B) in paragraph (2) by adding at the end the
following:
``(C) Collecting input from stakeholders on the
operation of all Federal student assistance programs
and accountability practices relating to such programs,
and ensuring that such input informs operation of the
PBO and is provided to the Secretary to inform policy
creation related to Federal student financial
assistance programs.''; and
(C) in paragraph (6)--
(i) in subparagraph (A), by striking ``The
Secretary'' and inserting ``Not less frequently
than once annually, the Secretary'';
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A)
the following: :
``(B) Report.--On an annual basis, after carrying
out the consultation required under subparagraph (A),
the Secretary and the Chief Operating Officer shall
jointly submit to the authorizing committees a report
that includes--
``(i) a summary of the consultation; and
``(ii) a description of any actions taken
as a result of the consultation..''.
(3) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking ``Each year,'' and
inserting ``Not less frequently than
once every three years''; and
(II) by striking ``succeeding 5''
and inserting ``succeeding 3'';
(ii) by amending subparagraph (B) to read
as follows:
``(B) Consultation.--
``(i) Plan development.--Beginning not
later than 12 months before issuing each 3-year
performance plan under subparagraph (A), the
Secretary and the Chief Operating Officer shall
consult with students, institutions of higher
education, Congress, lenders, and other
interested parties regarding the development of
the plan. In carrying out such consultation,
the Secretary shall seek public comment
consistent with the requirements of subchapter
II of chapter 5 of title 5, United States Code
(commonly known as the `Administrative
Procedure Act').
``(ii) Revision.--Not later than 90 days
before implementing any revision to the
performance plan described in subparagraph (A),
the Secretary shall consult with students,
institutions of higher education, Congress,
lenders, and other interested parties regarding
such revision.'';
(iii) in subparagraph (C)--
(I) in the matter preceding clause
(i), by inserting ``and target dates
upon which such action steps will be
taken and such goals will be achieved''
after ``achieve such goals'';
(II) by redesignating clause (v) as
clause (vi);
(III) by inserting after clause
(iv) the following:
``(v) Ensuring transparency.--Maximizing
the transparency in the operations of the PBO,
including complying with the data reporting
requirements under section 144.'';
(B) in paragraph (2)--
(i) by striking ``5-year'' and inserting
``3-year'';
(ii) in subparagraph (C), by inserting ``,
including an explanation of the specific steps
the Secretary and the Chief Operating Officer
will take to address any such goals that were
not achieved'' before the period;
(iii) in subparagraph (D), by inserting ``,
in the aggregate and per individual'' before
the period;
(iv) in subparagraph (E), by striking
``Recommendations'' and inserting ``Specific
recommendations'';
(v) by redesignating subparagraph (F) as
subparagraph (G); and
(vi) by inserting after subparagraph (E),
the following:
``(F) A description of the performance evaluation
system developed under subsection (d)(6).''.
(C) in paragraph (3)--
(i) in the matter preceding subparagraph
(A), by striking ``establish appropriate means
to'';
(ii) in subparagraph (A), by striking ``;
and'' and inserting ``and the PBO;'';
(iii) in subparagraph (B), by striking the
period at the end and inserting ``and the PBO;
and''; and
(iv) by adding at the end the following:
``(C) through a nationally-representative survey,
that at a minimum shall evaluate the degree of
satisfaction with the delivery system and the PBO.'';
(4) in subsection (d)--
(A) in paragraph (2), by striking ``The Secretary
may reappoint'' and inserting ``Except as provided in
paragraph (4)(C),''
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting ``specific,
measurable'' after ``set forth''; and
(II) by inserting ``and metrics
used to measure progress toward such
goals'' before the period;
(ii) by amending subparagraph (B) to read
as follows:
``(B) Transmittal and public availability.--The
Secretary shall--
``(i) transmit to the authorizing
committees the final version of, and any
subsequent revisions to, the agreement entered
into under subparagraph (A); and
``(ii) before the expiration of the period
of 5 business days beginning after the date on
which the agreement is transmitted under clause
(i), make such agreement publicly available on
a publicly accessible website of the Department
of Education.''.
(iii) by adding at the end the following:
``(C) Loss of eligibility.--If the agreement under
subparagraph (A) is not made publicly available before
the expiration of the period described in subparagraph
(B)(ii), the Chief Operating Officer shall not be
eligible for reappointment under paragraph (2).''; and
(C) in paragraph (5), by amending subparagraph (B)
to read as follows:
``(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in the following amounts:
``(i) For a period covered by a performance
agreement entered into under paragraph (4)
before the date of the enactment of the PROSPER
Act, an amount that does not exceed 50 percent
of the annual rate basic pay of the Chief
Operating Officer, based upon the Secretary's
evaluation of the Chief Operating Officer's
performance in relation to the goals set forth
in the performance agreement.
``(ii) For a period covered by a
performance agreement entered into under
paragraph (4) on or after the date of the
enactment of the PROSPER Act, an amount that
does not exceed 40 percent of the annual rate
basic pay of the Chief Operating Officer, based
upon the Secretary's evaluation of the Chief
Operating Officer's performance in relation to
the goals set forth in the performance
agreement.''.
(D) by adding at the end the following:
``(6) Performance evaluation system.--The Secretary shall
develop a system to evaluate the performance of the Chief
Operating Officer and any senior managers appointed by such
Officer under subsection (e). Such system shall--
``(A) take into account the extent to which each
individual attains the specific, measurable
organizational and individual goals set forth in the
performance agreement described in paragraph (4)(A) and
subsection (e)(2) (as the case may be); and
``(B) evaluate each individual using a rating
system that accounts for the full spectrum of
performance levels, from the failure of an individual
to meet the goals described in clause (i) to an
individual's success in meeting or exceeding such
goals.'';
(5) in subsection (e)--
(A) in paragraph (2), by striking ``organization
and individual goals'' and inserting ``specific,
measurable organization and individual goals and the
metrics used to measure progress toward such goals'';
(B) in paragraph (3), by amending subparagraph (B)
to read as follows:
``(B) Bonus.--In addition, a senior manager may
receive a bonus in the following amounts:
``(i) For a period covered by a performance
agreement entered into under paragraph (2)
before the date of the enactment of the PROSPER
Act, an amount such that the manager's total
annual compensation does not exceed 125 percent
of the maximum rate of basic pay for the Senior
Executive Service, including any applicable
locality-based comparability payment, based
upon the Chief Operating Officer's evaluation
of the manager's performance in relation to the
goals set forth in the performance agreement.
``(ii) For a period covered by a
performance agreement entered into under
paragraph (2) on or after the date of the
enactment of the PROSPER Act, an amount such
that the manager's total annual compensation
does not exceed 120 percent of the maximum rate
of basic pay for the Senior Executive Service,
including any applicable locality-based
comparability payment, based upon the Chief
Operating Officer's evaluation of the manager's
performance in relation to the goals set forth
in the performance agreement.''.
(6) by redesignating subsections (f), (g), (h), and (i) as
subsections (g), (h), (i), (j); and
(7) by inserting after subsection (e) the following:
``(f) Advisory Board.--
``(1) Establishment and purpose.--Not later than one year
after the date of the enactment of the PROSPER Act, the
Secretary shall establish an Advisory Board (referred to in
this subsection as the `Board') for the PBO. The purpose of
such Board shall be to conduct oversight over the PBO and the
Chief Operating Officer and senior managers described under
subsection (e) to ensure that the PBO is meeting the purposes
described in this section and the goals in the performance plan
described under such section.
``(2) Membership.--
``(A) Board members.--The Board shall consist of 7
members, one of whom shall be the Secretary.
``(B) Chairman.--A Chairman of the Board shall be
elected by the Board from among its members for a 2-
year term.
``(C) Secretary as an ex officio member.--The
Secretary, ex officio--
``(i) shall--
``(I) serve as a member of the
Board;
``(II) be a voting member of the
Board; and
``(III) be eligible to be elected
by the Board to serve as chairman or
vice chairman of the Board; and
``(ii) shall not be subject to the terms or
compensation requirements described in this
paragraph that are applicable to the other
members of the Board.
``(D) Additional board members.--Each member of the
Board (excluding the Secretary) shall be appointed by
the Secretary.
``(E) Terms.--
``(i) In general.--Each Board member,
except for the Secretary and the Board members
described in clause (ii)(II), shall serve 5-
year terms.
``(ii) Initial members.--
``(I) First 3 members.--The first 3
members confirmed to serve on the Board
after the date of enactment of the
PROSPER Act shall serve for 5-year
terms.
``(II) Other members.--The fourth,
fifth, and sixth members confirmed to
serve on the Board after such date of
enactment shall serve for 3-year terms.
``(iii) Reappointment.--The Secretary may
reappoint a Board member for one additional 5-
year term.
``(iv) Vacancies.--
``(I) In general.--Not later than
30 days after a vacancy of the Board
occurs, the Secretary shall publish a
Federal Register notice soliciting
nominations for the position.
``(II) Filling vacancy.--Not later
than 90 days after such vacancy occurs,
such vacancy shall be filled in the
same manner as the original appointment
was made, except that--
``(aa) the appointment
shall be for the remainder of
the uncompleted term; and
``(bb) such member may be
reappointed under clause (iii).
``(F) Membership qualifications and prohibitions.--
``(i) Qualifications.--The members of the
board, other than the Secretary, shall be
appointed without regard to political
affiliation and solely on the basis of their
professional experience and expertise in--
``(I) the management of large and
financially significant organizations,
including banks and commercial lending
companies; or
``(II) Federal student financial
assistance programs.
``(ii) Conflicts of interest among board
members.--Before appointing members of the
Board, the Secretary shall establish rules and
procedures to address any potential conflict of
interest between a member of the Board and
responsibilities of the Board, including
prohibiting membership for individuals with a
pecuniary interest in the activities of the
PBO.
``(G) No compensation.--Board members shall serve
without pay.
``(H) Expenses of board members.--Each member of
the Board shall receive travel expenses and other
permissible expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions
under title 5, United States Code.
``(3) Board responsibilities.--The Board shall have the
following responsibilities:
``(A) Conducting general oversight over the
functioning and operation of the PBO, including--
``(i) ensuring that the reporting and
planning requirements of this section are
fulfilled by the PBO; and
``(ii) ensuring that the Chief Operating
Officer acquires senior managers with
demonstrated management ability and expertise
in consumer lending (as described in subsection
(b)(1)(C)(iii)).
``(B) Approving the appointment or reappointment of
a Chief Operating Officer, except that the board shall
have no authority to approve or disapprove the
reappointment of the Chief Operating Officer who holds
such position on the date of enactment of the PROSPER
Act.
``(C) Making recommendations with respect to the
suitability of any bonuses proposed to be provided to
the Chief Operating Officer or senior managers
described under subsections (d) and (e), to ensure that
a bonus is not awarded to the Officer or a senior
manager in a case in which such Officer or manager has
failed to meet goals set for them under the relevant
performance plan under subsections (d)(4) and (e)(2),
respectively.
``(D) Approving any performance plan established
for the PBO.
``(4) Board operations.--
``(A) Meetings.--The Board shall meet at least
twice per year and at such other times as the
chairperson determines appropriate.
``(B) Powers of chairperson.--Except as otherwise
provided by a majority vote of the Board, the powers of
the chairperson shall include--
``(i) establishing committees;
``(ii) setting meeting places and times;
``(iii) establishing meeting agendas; and
``(iv) developing rules for the conduct of
business.
``(C) Quorum.--Four members of the Board shall
constitute a quorum. A majority of members present and
voting shall be required for the Board to take action.
``(D) Administration.--The Federal Advisory
Committee Act shall not apply with respect to the
Board, other than sections 10, 11 and 12 of such Act.
``(5) Annual report.--
``(A) In general.--Not less frequently than once
annually, the Board shall submit to the authorizing
committees a report on the results of the work
conducted by the PBO.
``(B) Contents.--Each report under clause (i) shall
include--
``(i) a description of the oversight work
of the Board and the results of such work;
``(ii) a description of statutory
requirements of this section and section 144
where the PBO is not in compliance;
``(iii) recommendations on the appointment
or reappointment of a Chief Operating Officer;
``(iv) recommendations regarding bonus
payments for the Chief Operating Officer and
senior managers; and
``(v) recommendations for the authorizing
Committees and the Appropriations Committees
on--
``(I) any statutory changes needed
that would enhance the ability of the
PBO to meet the purposes of this
section; and
``(II) any recommendations for the
Secretary or the Chief Operating
Officer that will improve the
operations of the PBO.
``(vi) Issuance and public release.--Each
report under clause (i) shall be posted on the
publicly accessible website of the Department
of Education.
``(vii) PBO recommendations.--Not later
than 180 days after the submission of each
report under clause (i), the Chief Operating
Officer shall respond to each recommendation
individually, which shall include a description
of such actions that the Officer is undertaking
to address such recommendation.
``(C) Staff.--
``(i) In general.--The Secretary may
appoint to the Board not more than 7 employees
to assist in carrying out the duties of the
Board under this section.
``(ii) Technical employees.--Such
appointments may include, for terms not to
exceed 3 years and without regard to the
provisions of title 5, United States Code,
governing appointments in the competitive
service, not more than 3 technical employees
who may be paid without regard to the
provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to
classification and General Schedule pay rates,
but no individual so appointed shall be paid in
excess of the rate authorized for GS-18 of the
General Schedule.
``(iii) Detailees.--The Secretary may
detail, on a reimbursable basis, any of the
personnel of the Department for the purposes
described in clause (i). Such employees shall
serve without additional pay, allowances, or
benefits.
``(iv) Statutory construction.--Nothing in
this subparagraph shall be construed to provide
for an increase in the total number of
permanent full-time equivalent positions in the
Department or any other department or agency of
the Federal Government.
``(6) Briefing on activities of the oversight board.--The
Secretary shall, upon request, provide a briefing to the
authorizing committees on the steps the Board has taken to
carry out its responsibilities under this subsection.''.
SEC. 132. ADMINISTRATIVE DATA TRANSPARENCY.
Part D of title I (20 U.S.C. 1018 et seq.) is amended by adding at
the end the following:
``SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY.
``(a) In General.--To improve the transparency of the student aid
delivery system, the Secretary and the Chief Operating Officer shall
collect and publish information on the performance of student loan
programs under title IV in accordance with this section.
``(b) Disclosures.--
``(1) In general.--The Secretary and the Chief Operating
Officer shall publish on a publicly accessible website of the
Department of Education the following aggregate statistics with
respect to the performance of student loans under title IV:
``(A) The number of borrowers who paid off the
total outstanding balance of principal and interest on
their loans before the end of the 10-year or
consolidated loan repayment schedule.
``(B) The number of loans under each type of
deferment and forbearance.
``(C) The average length of time a loan stays in
default.
``(D) The percentage of loans in default among
borrowers who completed the program of study for which
the loans were made.
``(E) The number of borrowers enrolled in an
income-based repayment plan who make monthly payments
of $0 and the average student loan debt of such
borrowers.
``(F) The number of students whose loan balances
are growing because such students are not paying the
full amount of interest accruing on the loans.
``(G) The number of borrowers entering income-based
repayment plans to get out of default.
``(H) The number of borrowers in income-based
repayment plans who have outstanding student loans from
graduate school, and the average balance of such loans.
``(I) With respect to the public service loan
forgiveness program under section 455(m)--
``(i) the number of applications submitted
and processed;
``(ii) the number of borrowers granted loan
forgiveness;
``(iii) the amount of loan debt forgiven;
and
``(iv) the number of borrowers granted loan
forgiveness, and the amount of the loan debt
forgiven, disaggregated by each category of
employer that employs individuals in public
service jobs (as defined in section
455(m)(3)(B), including--
``(I) the Federal Government, or a
State or local government;
``(II) an organization that is
described in section 501(c)(3) of the
Internal Revenue Code of 1986 and
exempt from taxation under section
501(a) of such Code; and
``(III) a non-profit organization
not described in subclause (II).
``(J) Any other aggregate statistics the Secretary
and the Chief Operating Officer determine to be
necessary to adequately inform the public of the
performance of the student loan programs under title
IV.
``(2) Disaggregation.--The statistics described in clauses
(i) through (iii) of paragraph (1)(I) shall be disaggregated--
``(A) by the number or amount for most recent
quarter;
``(B) by the total number or amount as of the date
of publication;
``(C) by repayment plan;
``(D) by borrowers seeking loan forgiveness for
loans made for an undergraduate course of study; and
``(E) by borrowers seeking loan forgiveness for
loans made for a graduate course of study.
``(3) Quarterly updates.--The statistics published under
paragraph (1) shall be updated not less frequently than once
each fiscal quarter.
``(c) Information Collection.--
``(1) In general.--The Secretary and the Chief Operating
Officer shall collect information on the performance of student
loans under title IV over time, including--
``(A) measurement of the cash flow generated by
such loans as determined by assessing monthly payments
on the loans over time;
``(B) the income level and employment status of
borrowers during repayment;
``(C) the loan repayment history of borrowers prior
to default;
``(D) the progress of borrowers in making monthly
payments on loans after defaulting on the loans; and
``(E) such other information as the Secretary and
the Chief Operating Officer determine to be
appropriate.
``(2) Availability.--
``(A) In general.--The information collected under
paragraph (1) shall be made available biannually to
organizations and researchers that--
``(i) submit to the Secretary and the Chief
Operating officer a request for such
information; and
``(ii) enter into an agreement with the
National Center for Education Statistics under
which the organization or researcher (as the
case may be) agrees to use the information in
accordance with the privacy laws described in
subparagraph (B).
``(B) Privacy protections.--The privacy laws
described in this subparagraph are the following:
``(i) Section 183 of the Education Sciences
Reform Act of 2002 (20 U.S.C. 9573).
``(ii) The Privacy Act of 1974 (5 U.S.C.
552a).
``(iii) Section 444 of the General
Education Provisions Act (commonly known as the
`Family Educational Rights and Privacy Act of
1974') (20 U.S.C. 1232g).
``(iv) Subtitle A of title V of the E-
Government Act of 2002 (44 U.S.C. 3501 note).
``(C) Format.--The information described in
subparagraph (A) shall be made available in the format
of a data file that contains an statistically accurate,
representative sample of all borrowers of loans under
title IV.
``(d) Data Sharing.--The Secretary and the Chief Operating Officer
may enter into cooperative data sharing agreements with other Federal
or State agencies to ensure the accuracy of information collected and
published under this section.
``(e) Privacy.--The Secretary and the Chief Operating Officer shall
ensure that any information collected, published, or otherwise made
available under this section does not reveal personally identifiable
information.''.
PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION LOANS
SEC. 141. MODIFICATION OF PREFERRED LENDER ARRANGEMENTS.
(a) In General.--Part E of title I (20 U.S.C. 1019 et seq.) is
amended--
(1) in section 151 (20 U.S.C. 1019(2))--
(A) in paragraph (2), by striking ``section 102''
and inserting ``section 101 or 102'';
(B) in paragraph (3)--
(i) by striking ``or'' at the end of
subparagraph (B);
(ii) by redesignating subparagraph (C) as
subparagraph (D); and
(iii) by inserting after subparagraph (B),
the following:
``(C) any loan made under part E of title IV after
the date of enactment of the PROSPER Act; or'';
(C) in paragraph (6)(A)--
(i) by striking ``and'' at the end of
clause (ii);
(ii) by redesignating clause (iii) as
clause (iv); and
(iii) by inserting after clause (ii), the
following:
``(iii) in the case of a loan issued or
provided to a student under part E of title IV
on or after the date of enactment of the
PROSPER Act;'';
(D) in paragraph (8)(B)(ii)--
(i) by striking ``or'' at the end of clause
(i);
(ii) by redesignating clause (ii) as clause
(iii); and
(iii) by inserting after clause (i), the
following:
``(ii) arrangements or agreements with
respect to loans under part E of title IV;
or'';
(2) in section 152 (20 U.S.C. 1019)--
(A) in subsection (a)(1)--
(i) in subparagraph (B), by amending clause
(i) to read as follows:
``(i) make available to the prospective
borrower on a website or with informational
material, the information the Board of
Governors of the Federal Reserve System
requires the lender to provide to the covered
institution under section 128(e)(11) of the
Truth in Lending Act (15 U.S.C. 1638(e)(11))
for such loan;''; and
(ii) by adding at the end the following:
``(D) Special rule.--Notwithstanding any other
provision of law, a covered institution, or an
institution-affiliated organization of such covered
institution, shall not be required to provide any
information regarding private education loans to
prospective borrowers except for the information
described in subparagraph (B).''; and
(B) in subsection (b)(1)(A)(i), by striking ``part
B or D'' and inserting ``part B, D, or E'';
(3) in section 153 (20 U.S.C. 1019b)--
(A) in subsection (a)--
(i) in paragraph (1)(B)--
(I) in clause (i), by adding
``and'' at the end;
(II) in clause (ii), by striking
``; and'' at the end and inserting a
period; and
(III) by striking clause (iii); and
(ii) in paragraph (2), by amending
subparagraph (C) to read as follows:
``(C) update such model disclosure form not later
than 180 after the date of enactment of the PROSPER
Act, and periodically thereafter, as necessary.''; and
(B) by amending subsection (c) to read as follows:
``(c) Duties of Covered Institutions and Institution-Affiliated
Organizations.--
``(1) Code of conduct.--Each covered institution, and each
institution-affiliated organization of such covered
institution, that has a preferred lender arrangement, shall
comply with the code of conduct requirements of subparagraphs
(A) through (C) of section 487(a)(22).
``(2) Applicable code of conduct.--For purposes of
subparagraph (A), an institution-affiliated organization of a
covered institution shall--
``(A) comply with the code of conduct developed and
published by such covered institution under
subparagraphs (A) and (B) of section 487(a)(22);
``(B) if such institution-affiliated organization
has a website, publish such code of conduct prominently
on the website; and
``(C) administer and enforce such code of conduct
by, at a minimum, requiring that all of such
organization's agents with responsibilities with
respect to education loans be annually informed of the
provisions of such code of conduct.''; and
(4) in section 154 (20 U.S.C. 1019c)--
(A) in the subsection heading, by inserting before
the period the following: ``or the Federal ONE Loan
Program'';
(B) by striking ``William D. Ford Direct Loan
Program'' each place it appears and inserting ``William
D. Ford Direct Loan Program or the Federal ONE Loan
Program''
(C) by striking ``part D'' each place it appears
and inserting ``part D or E''; and
(D) in subsection (a)--
(i) by striking ``the development'' and
inserting ``the first update'';
(ii) by striking ``section 153(a)(2)(B)''
and inserting ``section 153(a)(2)(C)''; and
(iii) by striking ``Federal Direct Stafford
Loans, Federal Direct Unsubsidized Stafford
Loans, and Federal Direct PLUS'' and inserting
``undergraduate, graduate, and parent''.
(b) Limitation.--The Secretary of Education shall not impose,
administer, or enforce any requirements on a covered institution or an
institution-affiliated organization of a covered institution relating
to preferred lender lists or arrangements unless explicitly authorized
by sections 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 1019b(c), or 1094(h),
respectively) as amended by this Act.
PART F--ADDRESSING SEXUAL ASSAULT
SEC. 151. ADDRESSING SEXUAL ASSAULT.
Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end
the following new part:
``PART F--ADDRESSING SEXUAL ASSAULT
``SEC. 161. APPLICATION.
``The requirements of this part shall apply to any institution of
higher education receiving Federal financial assistance under this Act,
including financial assistance provided to students under title IV,
other than--
``(1) an institution outside the United States; or
``(2) an institution that provides instruction primarily
through online courses.
``SEC. 162. CAMPUS CLIMATE SURVEYS.
``(a) Surveys To Measure Campus Attitudes and Climate Regarding
Sexual Assault and Misconduct on Campus.--Each institution of higher
education that is subject to this part shall conduct surveys of its
students to measure campus attitudes towards sexual assault and the
general climate of the campus regarding the institution's treatment of
sexual assault on campus, and shall use the results of the survey to
improve the institution's ability to prevent and respond appropriately
to incidents of sexual assault.
``(b) Contents.--The institution's survey under this section shall
consist of such questions as the institution considers appropriate,
which may (at the option of the institution) include any of the
following:
``(1) Questions on the incidence and prevalence of sexual
assault experienced by students.
``(2) Questions on whether students who experience sexual
assault report such incidents to campus officials or law
enforcement agencies.
``(3) Questions on whether the alleged perpetrators are
students of the institution.
``(4) Questions to test the students' knowledge and
understanding of institutional policies regarding sexual
assault and available campus support services for victims of
sexual assault.
``(5) Questions to test the students' knowledge,
understanding, and retention of campus sexual assault
prevention and awareness programming.
``(6) Questions related to dating violence, domestic
violence, and stalking.
``(c) Other Issues Relating to the Administration of Surveys.--
``(1) Mandatory confidentiality of responses.--The
institution shall ensure that all responses to surveys under
this section are kept confidential and do not require the
respondents to provide personally identifiable information.
``(2) Encouraging use of best practices and appropriate
language.--The institution is encouraged to administer the
surveys under this section in accordance with best practices
derived from peer-reviewed research, and to use language that
is sensitive to potential respondents who may have been victims
of sexual assault.
``(3) Encouraging responses.--The institution shall make a
good faith effort to encourage students to respond to the
surveys.
``(d) Role of Secretary.--
``(1) Development of sample surveys.--The Secretary, in
consultation with relevant stakeholders, shall develop sample
surveys that an institution may elect to use under this
section, and shall post such surveys on a publicly accessible
website of the Department of Education. The Secretary shall
develop sample surveys that are suitable for the various
populations who will participate in the surveys.
``(2) Limit on other activities.--In carrying out this
section, the Secretary--
``(A) may not regulate or otherwise impose
conditions on the contents of an institution's surveys
under this section, except as may be necessary to
ensure that the institution meets the confidentiality
requirements of subsection (c)(1); and
``(B) may not use the results of the surveys to
make comparisons between institutions of higher
education.
``(e) Frequency.--An institution of higher education that is
subject to this part shall conduct a survey under this section not less
frequently than once every 3 academic years.
``SEC. 163. SURVIVORS' COUNSELORS.
``(a) Requiring Institutions To Make Counselor Available.--
``(1) In general.--Each institution of higher education
that is subject to this part shall retain the services of
qualified sexual assault survivors' counselors to counsel and
support students who are victims of sexual assault.
``(2) Use of contractors permitted.--At the option of the
institution, the institution may retain the services of
counselors who are employees of the institution or may enter
into agreements with other institutions of higher education,
victim advocacy organizations, or other appropriate sources to
provide counselors for purposes of this section.
``(3) Number.--The institution shall retain such number of
counselors under this section as the institution considers
appropriate based on a reasonable determination of the
anticipated demand for such counselors' services, so long as
the institution retains the services of at least one such
counselor at all times.
``(b) Qualifications.--A counselor is qualified for purposes of
this section if the counselor has completed education specifically
designed to enable the counselor to provide support to victims of
sexual assault, and is familiar with relevant laws on sexual assault as
well as the institution's own policies regarding sexual assault.
``(c) Informing Victims of Available Options and Services.--In
providing services pursuant to this section, a counselor shall--
``(1) inform the victim of sexual assault of options
available to victims, including the procedures the victim may
follow to report the assault to the institution or to a law
enforcement agency; and
``(2) inform the victim of interim measures that may be
taken pending the resolution of institutional disciplinary
proceedings or the conclusion of criminal justice proceedings.
``(d) Confidentiality.--
``(1) Maintaining confidentiality of information.--In
providing services pursuant to this section, a counselor
shall--
``(A) maintain confidentiality with respect to any
information provided by a victim of sexual assault to
the greatest extent permitted under applicable law; and
``(B) notify the victim of any circumstances under
which the counselor is required to report information
to others (including a law enforcement agency)
notwithstanding the general requirement to maintain
confidentiality under subparagraph (A).
``(2) Maintaining privacy of records.--A counselor
providing services pursuant to this section shall be considered
a recognized professional for purposes of section
444(a)(4)(B)(iv) of the General Education Provisions Act
(commonly known as the `Family Educational Rights and Privacy
Act of 1974') (20 U.S.C. 1232g(a)(4)(B)(iv)).
``(e) Limitations.--
``(1) No reporting of incidents under clery act or other
authority.--A counselor providing services pursuant to this
section is not required to report incidents of sexual assault
that are reported to the counselor for inclusion in any report
on campus crime statistics, and shall not be considered part of
a campus police or security department for purposes of section
485(f).
``(2) No coverage of counselors as responsible employees
under title ix.--A counselor providing services pursuant to
this section on behalf of an institution of higher education
shall not be considered a responsible employee of the
institution for purposes of title IX of the Education
Amendments of 1972 (20 U.S.C. 1681 et seq.) or the regulations
promulgated pursuant to such title.
``(f) Notifications to Students.--Each institution of higher
education that is subject to this part shall make a good faith effort
to notify its students of the availability of the services of
counselors pursuant to this section through the statement of policy
described in section 485(f)(8)(B)(vi) and any other methods as the
institution considers appropriate, including disseminating information
through the institution's website, posting notices throughout the
campus, and including information as part of programs to educate
students on sexual assault prevention and awareness.
``SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL ASSAULT.
``(a) Requirement To Develop and Distribute Form.--Each institution
of higher education that is subject to this part shall develop a one-
page form containing information to provide guidance and assistance to
students who may be victims of sexual assault, and shall make the form
widely available to students.
``(b) Contents of Form.--The form developed under this section
shall contain such information as the institution considers
appropriate, and may include the following:
``(1) Information about the services of counselors which
are available pursuant to section 163, including a statement
that the counselor will provide the maximum degree of
confidentiality permitted under law, and a brief description of
the circumstances under which the counselor may be required to
report information notwithstanding the victim's desire to keep
the information confidential.
``(2) Information about other appropriate campus resources
and resources in the local community, including contact
information.
``(3) Information about where to obtain medical treatment,
and information about transportation services to such medical
treatment facilities, if available.
``(4) Information about the importance of preserving
evidence after a sexual assault.
``(5) Information about how to file a report with local law
enforcement agencies.
``(6) Information about the victim's right to request
accommodations, and examples of accommodations that may be
provided.
``(7) Information about the victim's right to request that
the institution begin an investigation of an allegation of
sexual assault and initiate an institutional disciplinary
proceeding if the alleged perpetrator of the assault is another
student or a member of the faculty or staff of the institution.
``(8) A statement that an institutional disciplinary
proceeding is not a substitute for a criminal justice
proceeding.
``(9) Information about how to report a sexual assault to
the institution, including the designated official or office
responsible for receiving these reports.
``(c) Development of Model Forms.--The Secretary, in consultation
with relevant stakeholders, shall develop model forms that an
institution may use to meet the requirements of this section, and shall
include in such model forms language which may accommodate a variety of
State and local laws and institutional policies. Nothing in this
subsection may be construed to require an institution to use any of the
model forms developed under this subsection.
``SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL LAW ENFORCEMENT
AGENCIES.
``(a) Findings; Purpose.--
``(1) Findings.--Because sexual assault is a serious crime,
coordination and cooperation between institutions of higher
education and law enforcement agencies are critical in ensuring
that reports of sexual assaults on campus are handled in an
appropriate and effective manner. A memorandum of understanding
entered into between an institution and the law enforcement
agency with primary jurisdiction for responding to reports of
sexual assault on the institution's campus is a useful tool to
promote this coordination and cooperation.
``(2) Purpose.--It is the purpose of this section to
encourage each institution of higher education that is subject
to this part to enter into a memorandum of understanding with
the law enforcement agency with primary jurisdiction for
responding to reports of sexual assault on the institution's
campus so that reports of sexual assault on the institution's
campus may be handled in an appropriate and effective manner.
``(b) Contents of Memorandum.--An institution of higher education
and a law enforcement agency entering into a memorandum of
understanding described in this section are encouraged to include in
the memorandum provisions addressing the following:
``(1) An outline of the protocols and a delineation of
responsibilities for responding to a report of sexual assault
occurring on campus.
``(2) A clarification of each party's responsibilities
under existing Federal, State, and local law or policies.
``(3) The need for the law enforcement agency to know about
institutional policies and resources so that the agency can
direct student-victims of sexual assault to such resources.
``(4) The need for the institution to know about resources
available within the criminal justice system to assist
survivors, including the presence of special prosecutor or
police units specifically designated to handle sexual assault
cases.
``(5) If the institution has a campus police or security
department with law enforcement authority, the need to clarify
the relationship and delineate the responsibilities between
such department and the law enforcement agency with respect to
handling incidents of sexual assaults occurring on campus.
``(c) Role of Secretary.--The Secretary, in consultation with the
Attorney General, shall develop best practices for memoranda of
understanding described in this section, and shall disseminate such
best practices on a publicly accessible website of the Department of
Education.
``SEC. 166. DEFINITIONS.
``In this part:
``(1) The term `sexual assault' has the meaning given such
term in section 485(f)(6)(A)(v).
``(2) The terms `dating violence', `domestic violence', and
`stalking', have the meaning given such terms in section
485(f)(6)(A)(i).''.
TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
SEC. 201. REPEAL.
(a) Repeal.--Title II (20 U.S.C. 1021 et seq.) is repealed.
(b) Part A Transition.--Part A of title II (20 U.S.C. 1022 et
seq.), as in effect on the day before the date of the enactment of this
Act, may be carried out using funds that have been appropriated for
such part until June 30, 2018.
SEC. 202. GRANTS FOR ACCESS TO HIGH-DEMAND CAREERS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is
amended by inserting after title I the following:
``TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
``SEC. 201. APPRENTICESHIP GRANT PROGRAM.
``(a) Purpose.--The purpose of this section is to expand student
access to, and participation in, new industry-led earn-and-learn
programs leading to high-wage, high-skill, and high-demand careers.
``(b) Authorization of Apprenticeship Grant Program.--
``(1) In general.--From the amounts authorized under
subsection (j), the Secretary shall award grants, on a
competitive basis, to eligible partnerships for the purpose
described in subsection (a).
``(2) Duration.--The Secretary shall award grants under
this section for a period of--
``(A) not less than 1 year; and
``(B) not more than 4 years.
``(3) Limitations.--
``(A) Amount.--A grant awarded under this section
may not be in an amount greater than $1,500,000.
``(B) Number of awards.--An eligible partnership or
member of such partnership may not be awarded more than
one grant under this section.
``(C) Administration costs.--An eligible
partnership awarded a grant under this section may not
use more than 5 percent of the grant funds to pay
administrative costs associated with activities funded
by the grant.
``(c) Matching Funds.--To receive a grant under this section, an
eligible partnership shall, through cash or in-kind contributions,
provide matching funds from non-Federal sources in an amount equal to
or greater than 50 percent of the amount of such grant.
``(d) Applications.--
``(1) In general.--To receive a grant under this section,
an eligible partnership shall submit to the Secretary at such a
time as the Secretary may require, an application that--
``(A) identifies and designates the business or
institution of higher education responsible for the
administration and supervision of the earn-and-learn
program for which such grant funds would be used;
``(B) identifies the businesses and institutions of
higher education that comprise the eligible
partnership;
``(C) identifies the source and amount of the
matching funds required under subsection (c);
``(D) identifies the number of students who will
participate and complete the relevant earn-and-learn
program within 1 year of the expiration of the grant;
``(E) identifies the amount of time, not to exceed
2 years, required for students to complete the program;
``(F) identifies the relevant recognized
postsecondary credential to be awarded to students who
complete the program;
``(G) identifies the anticipated earnings of
students--
``(i) 1 year after program completion; and
``(ii) 3 years after program completion;
``(H) describes the specific project for which the
application is submitted, including a summary of the
relevant classroom and paid structured on-the-job
training students will receive;
``(I) describes how the eligible partnership will
finance the program after the end of the grant period;
``(J) describes how the eligible partnership will
support the collection of information and data for
purposes of the program evaluation required under
subsection (h); and
``(K) describes the alignment of the program with
State identified in-demand industry sectors.
``(2) Application review process.--
``(A) Review panel.--Applications submitted under
paragraph (1) shall be read by a panel of readers
composed of individuals selected by the Secretary. The
Secretary shall assure that an individual assigned
under this paragraph does not have a conflict of
interest with respect to the applications reviewed by
such individual.
``(B) Composition of review panel.--The panel of
reviewers selected by the Secretary under subparagraph
(A) shall be comprised as follows:
``(i) A majority of the panel shall be
individuals who are representative of
businesses, which may include owners,
executives with optimum hiring authority, or
individuals representing business organizations
or business trade associations.
``(ii) The remainder of the panel shall be
equally divided between individuals who are--
``(I) representatives of
institutions of higher education that
offer programs of two years or less;
and
``(II) representatives of State
workforce development boards
established under section 101 of the
Workforce Innovation and Opportunity
Act (29 U.S.C. 3111).
``(C) Review of applications.--The Secretary shall
instruct the review panel selected by the Secretary
under paragraph (2)(A) to evaluate applications using
only the criteria specified in paragraph (1) and make
recommendations with respect to--
``(i) the quality of the applications;
``(ii) whether a grant should be awarded
for a project under this title; and
``(iii) the amount and duration of such
grant.
``(D) Notification.--Not later than June 30 of each
year, the Secretary shall notify each eligible
partnership submitting an application under this
section of--
``(i) the scores given the applicant by the
panel pursuant to this section;
``(ii) the recommendations of the panel
with respect to such application; and
``(iii) the reasons for the decision of the
Secretary in awarding or refusing to award a
grant under this section; and
``(iv) modifications, if any, in the
recommendations of the panel made to the
Secretary.
``(e) Award Basis.--The Secretary shall award grants under this
section on the following basis--
``(1) the number of participants to be served by the grant;
``(2) the anticipated income of program participants in
relation to the regional median income;
``(3) the alignment of the program with State-identified
in-demand industry sectors; and
``(4) the recommendations of the readers under subsection
(d)(2)(C).
``(f) Use of Funds.--Grant funds provided under this section may be
used for--
``(1) the purchase of appropriate equipment, technology, or
instructional material, aligned with business and industry
needs, including machinery, testing equipment, hardware and
software;
``(2) student books, supplies, and equipment required for
enrollment;
``(3) the reimbursement of up to 50 percent of the wages of
a student participating in an earn-and-learn program receiving
a grant under this section;
``(4) the development of industry-specific programing;
``(5) supporting the transition of industry-based
professionals from an industry setting to an academic setting;
``(6) industry-recognized certification exams or other
assessments leading to a recognized postsecondary credential
associated with the earn-and-learn program; and
``(7) any fees associated with the certifications or
assessments described in paragraph (6).
``(g) Technical Assistance.--The Secretary may provide technical
assistance to eligible partnerships awarded under this section
throughout the grant period for purposes of grant management.
``(h) Evaluation.--
``(1) In general.--From the amounts made available under
subsection (j), the Secretary, acting through the Director of
the Institute for Education Sciences, shall provide for the
independent evaluation of the grant program established under
this section that includes the following:
``(A) An assessment of the effectiveness of the
grant program in expanding earn-and-learn program
opportunities offered by employers in conjunction with
institutions of higher education.
``(B) The number of students who participated in
programs assisted under this section.
``(C) The percentage of students participating in
programs assisted under this section who successfully
completed the program in the time described in
subsection (d)(1)(E).
``(D) The median earnings of program participants--
``(i) 1 year after exiting the program; and
``(ii) 3 years after exiting the program.
``(E) The percentage of students participating in
programs assisted under this section who successfully
receive a recognized postsecondary credential.
``(F) The number of students served by programs
receiving funding under this section--
``(i) 2 years after the end of the grant
period;
``(ii) 4 years after the end of the grant
period.
``(2) Prohibition.--Notwithstanding any other provision of
law, the evaluation required by this subsection shall not be
subject to any review outside the Institute for Education
Sciences before such reports are submitted to Congress and the
Secretary.
``(3) Publication.--The evaluation required by this
subsection shall be made publicly available on the website of
the Department.
``(i) Definitions.--In this section:
``(1) Earn-and-learn program.--The term `earn-and-learn
program' means an education program, including an
apprenticeship program, that provides students with structured,
sustained, and paid on-the-job training and accompanying, for
credit, classroom instruction that--
``(A) is for a period of between 3 months and 2
years; and
``(B) leads to, on completion of the program, a
recognized postsecondary credential.
``(2) Eligible partnership.--The term `eligible
partnership' shall mean a consortium that includes--
``(A) one or more businesses; and
``(B) one or more institutions of higher education.
``(3) In-demand industry sector or occupation.--The term
`in-demand industry sector or occupation' has the meaning given
the term in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
``(4) On-the-job training.--The term `on-the-job training'
has the meaning given the term in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102).
``(5) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning given the
term in section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102).
``(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $183,204,000 for fiscal year
2019 and each of the 5 succeeding fiscal years.''.
TITLE III--INSTITUTIONAL AID
SEC. 301. STRENGTHENING INSTITUTIONS.
Part A of title III (20 U.S.C. 1057 et seq.) is amended--
(1) in the part heading for part A, by inserting
``minority-serving'' after ``strengthening'';
(2) in section 311--
(A) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively;
(B) in subsection (b) (as so redesignated)--
(i) by striking paragraph (6) and inserting
the following:
``(6) Tutoring, counseling, advising, and student service
programs designed to improve academic success, including
innovative and customized instructional courses (which may
include remedial education and English language instruction)
designed to help retain students and move the students rapidly
into core courses and through program completion.'';
(ii) in paragraph (8), by striking
``acquisition of equipment for use in
strengthening funds management'' and inserting
``acquisition of technology, services, and
equipment for use in strengthening funds and
administrative management'';
(iii) in paragraph (12), by striking
``Creating'' and all that follows through
``technologies,'' and inserting ``Innovative
learning models and creating or improving
facilities for Internet or other innovative
technologies,'';
(iv) by redesignating paragraph (13) as
paragraph (18); and
(v) by inserting after paragraph (12) the
following:
``(13) Establishing community outreach programs that will
encourage elementary school and secondary school students to
develop the academic skills and the interest to pursue
postsecondary education.
``(14) The development, coordination, implementation, or
improvement of career and technical education programs as
defined in section 135 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2355).
``(15) Alignment and integration of career and technical
education programs with programs of study leading to a
bachelor's degree, graduate degree, or professional degree.
``(16) Developing or expanding access to dual or concurrent
enrollment programs and early college high school programs.
``(17) Pay for success initiatives that improve time to
completion and increase graduation rates.''; and
(C) in subsection (c) (as so redesignated), by
adding at the end the following:
``(4) Scholarship.--An institution that uses grant funds
provided under this part to establish or increase an endowment
fund may use the income from such endowment fund to provide
scholarships to students for the purposes of attending such
institution, subject to the limitation in section
331(c)(3)(B)(i).'';
(3) in section 312--
(A) in subsection (a), by striking ``transfers
which the institution'' and inserting ``transfers that
the institution'';
(B) in subsection (b)(1)--
(i) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (E), respectively;
(ii) in subparagraph (E) (as so
redesignated), by inserting ``(as defined in
section 103(20)(A))'' after ``State''; and
(iii) in subparagraph (F) (as so
redesignated), by striking ``and'' at the end;
and
(C) in subsection (b)--
(i) by striking the period at the end of
paragraph (2) and inserting ``; and''; and
(ii) by inserting after paragraph (2) the
following:
``(3) except as provided in section 392(b), an institution
that has a completion rate of at least 25 percent that is
calculated by counting a student as completed if that student--
``(A) graduates within 150 percent of the normal
time for completion; or
``(B) enrolled into another program at an
institution for which the previous program provided
substantial preparation within 150 percent of the
normal time for completion.'';
(4) in section 313--
(A) in subsection (a)--
(i) by striking ``for 5 years'' and
inserting ``for a period of 5 years''; and
(ii) by adding at the end the following:
``Any funds awarded under this section that are
not expended or used for the purposes for which
the funds were paid within 10 years following
the date on which the grant was awarded, shall
be repaid to the Treasury.''; and
(B) by striking subsection (d);
(5) in section 316--
(A) in subsection (c)--
(i) in paragraph (2)--
(I) by striking subparagraph (A)
and inserting the following:
``(A) the activities described in paragraphs (1)
through (12) and (14) through (17) of section
311(b);'';
(II) by striking subparagraphs (E)
through (J);
(III) by redesignating
subparagraphs (K) and (L) as
subparagraphs (E) and (F),
respectively;
(IV) by striking subparagraph (M);
(V) by redesignating subparagraph
(N) as subparagraph (G); and
(VI) in subparagraph (G) (as so
redesignated), by striking ``(M)'' and
inserting ``(F)''; and
(ii) by striking paragraph (3) and
inserting the following:
``(3) Endowment fund.--A Tribal College or University
seeking to establish or increase an endowment fund shall abide
by the requirements in section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Application.--A Tribal College or University desiring
to receive assistance under this section shall submit an
application to the Secretary pursuant to section 391.''; and
(ii) in paragraph (4)--
(I) in subparagraph (A), by
striking ``part A of''; and
(II) in subparagraph (B), by
striking ``313(d)'' and inserting
``312(b)(3)'';
(6) in section 317--
(A) in subsection (c)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Examples of authorized activities.--Such programs may
include--
``(A) the activities described in paragraphs (1)
through (17) of section 311(b); and
``(B) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the
purpose of this section; and
``(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection (d).'';
and
(ii) by adding at the end the following:
``(3) Endowment fund.--An Alaska Native-serving institution
and Native Hawaiian-serving institution seeking to establish or
increase an endowment fund shall abide by the requirements in
section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (1) and
redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively;
(ii) in paragraph (1) (as so
redesignated)--
(I) in the first sentence, by
inserting ``pursuant to section 391''
after ``to the Secretary''; and
(II) by striking the remaining
sentences; and
(iii) in paragraph (2) (as so
redesignated)--
(I) in subparagraph (A), by
striking ``this part or part B.'' and
inserting ``this part, part B, or title
V.''; and
(II) by striking subparagraph (B)
and redesignating subparagraph (C) as
subparagraph (B);
(7) in section 318--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (E), by
striking ``and'' at the end;
(II) in subparagraph (F)(ii), by
striking ``part A of'';
(III) in subparagraph (F)(iii), by
striking the period at the end and
inserting ``; and''; and
(IV) by adding at the end the
following;
``(G) is an eligible institution under section
312(b).''; and
(ii) by striking paragraph (7);
(B) in subsection (d)--
(i) in paragraph (2)--
(I) in subparagraph (A), by
striking ``through (12)'' and inserting
``through (17) of section 311(b)'';
(II) by striking subparagraph (D);
and
(III) by redesignating subparagraph
(E) as subparagraph (D); and
(ii) by striking paragraph (3) and
inserting the following:
``(3) Endowment fund.--A Predominantly Black Institution
seeking to establish or increase an endowment fund shall abide
by the requirements in section 311(c).'';
(C) in subsection (f), by striking all after
``Secretary'' the first place such term appears and
inserting ``pursuant to section 391.'';
(D) by striking subsections (g) and (h);
(E) by redesignating subsection (i) as subsection
(g); and
(F) in subsection (g) (as so redesignated), by
striking ``part A of'';
(8) in section 319--
(A) in subsection (c)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Examples of authorized activities.--Such programs may
include--
``(A) the activities described in paragraphs (1)
through (17) of section 311(b); and
``(B) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the
purpose of this section; and
``(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection (d).'';
and
(ii) by adding at the end the following:
``(3) Endowment fund.--A Native American-serving, nontribal
institution seeking to establish or increase an endowment fund
shall abide by the requirements in section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (1) and inserting
the following:
``(1) Application.--A Native American-serving, nontribal
institution desiring to receive assistance under this section
shall submit an application to the Secretary pursuant to
section 391.'';
(ii) by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2);
and
(iii) in paragraph (2) (as so
redesignated)--
(I) in subparagraph (A), by
striking ``part A of'';
(II) by striking subparagraph (B);
and
(III) by redesignating
subparagraphs (C) and (D) as
subparagraphs (B) and (C),
respectively; and
(9) in section 320--
(A) in subsection (c)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Examples of authorized activities.--Such programs may
include--
``(A) the activities described in paragraphs (1)
through (17) of section 311(b);
``(B) academic instruction in disciplines in which
Asian Americans and Native American Pacific Islanders
are underrepresented;
``(C) conducting research and data collection for
Asian American and Native American Pacific Islander
populations and subpopulations;
``(D) establishing partnerships with community-
based organizations serving Asian Americans and Native
American Pacific Islanders; and
``(E) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the
purpose of this section; and
``(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection (d).'';
and
(ii) by adding at the end the following:
``(3) Endowment fund.--An Asian American and Native
American Pacific Islander-serving institution seeking to
establish or increase an endowment fund shall abide by the
requirements in section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (1) and inserting
the following:
``(1) Application.--Each Asian American and Native American
Pacific Islander-serving institution desiring to receive
assistance under this section shall submit an application to
the Secretary pursuant to section 391.'';
(ii) by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2);
and
(iii) in paragraph (2) (as so
redesignated), by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph
(B).
SEC. 302. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
Part B of title III (20 U.S.C. 1060 et seq.) is amended--
(1) in section 323--
(A) by striking subsection (a) and inserting the
following :
``(a) Authorized Activities.--From amounts available under section
399(a)(2) for any fiscal year, the Secretary shall make grants (under
section 324) to institutions which have applications approved by the
Secretary (under section 325) for any of the following uses:
``(1) The activities described in paragraphs (1) through
(17) of section 311(b).
``(2) Academic instruction in disciplines in which Black
Americans are underrepresented.
``(3) Initiatives to improve the educational outcomes of
African-American males.
``(4) Establishing or enhancing a program of teacher
education designed to qualify students to teach in a public
elementary or secondary school in the State that shall include,
as part of such program, preparation for teacher certification.
``(5) Acquisition of real property in connection with the
construction, renovation, or addition to or improvement of
campus facilities.
``(6) Services necessary for the implementation of projects
or activities that are described in the grant application and
that are approved, in advance, by the Secretary, except that
not more than two percent of the grant amount may be used for
this purpose.
``(7) Other activities proposed in the application
submitted pursuant to section 325 that--
``(A) contribute to carrying out the purposes of
this part; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Endowment Fund.--An institution seeking to establish or
increase an endowment shall abide by the requirements in section
311(c).'';
(2) in section 325(a), by striking ``(C), (D), and (E)''
and inserting ``(C) through (F)'';
(3) in section 326--
(A) by striking subsection (b) and inserting the
following:
``(b) Duration.--The Secretary may award a grant to an eligible
institution under this part for a period of 5 years. Any funds awarded
under this section that are not expended or used for the purposes for
which the funds were paid within 10 years following the date on which
the grant was awarded, shall be repaid to the Treasury.'';
(B) by striking subsection (c) and inserting the
following:
``(c) Authorized Activities.--A grant under this section may be
used for--
``(1) the activities described in paragraphs (1) through
(12), (14) through (15), and (17) of section 311(b);
``(2) scholarships, fellowships, and other financial
assistance for needy graduate and professional students to
permit the enrollment of the students in and completion of the
doctoral degree in medicine, dentistry, pharmacy, veterinary
medicine, law, and the doctorate degree in the physical or
natural sciences, engineering, mathematics, or other scientific
disciplines in which African Americans are underrepresented;
``(3) acquisition of real property that is adjacent to the
campus in connection with the construction, renovation, or
addition to or improvement of campus facilities;
``(4) services necessary for the implementation of projects
or activities that are described in the grant application and
that are approved, in advance, by the Secretary, except that
not more than two percent of the grant amount may be used for
this purpose; and
``(5) other activities proposed in the application
submitted under subsection (d) that--
``(A) contribute to carrying out the purposes of
this part; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.'';
(C) in subsection (e)(1)--
(i) in subparagraph (W), by striking
``and'' at the end;
(ii) in subparagraph (X), by striking the
period at the end and inserting ``; and'';
(iii) by adding at the end the following:
``(Y) University of the Virgin Islands School of
Medicine.'';
(iv) in each of paragraphs (2) and (3) of
subsection (f), by striking ``(X)'' and
inserting ``(Y)''; and
(v) in subsection (g), by striking ``2008''
each place such term appears and inserting
``2018''; and
(4) in section 327--
(A) by striking the designation and heading for
subsection (a); and
(B) by striking subsection (b).
SEC. 303. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.
Part D of title III (20 U.S.C. 1066 et seq.) is amended--
(1) in section 343--
(A) by striking ``escrow account'' each place it
appears and inserting ``bond insurance fund''; and
(B) in subsection (b)--
(i) in paragraph (1), by striking ``an''
and inserting ``a''; and
(ii) in paragraph (8), in the matter
preceding subparagraph (A), by striking ``an''
and inserting ``a'';
(2) in section 345, by striking paragraph (9) and inserting
the following:
``(9) may, directly or by grant or contract, provide
financial counseling and technical assistance to eligible
institutions to prepare the institutions to qualify, apply for,
and maintain a capital improvement loan, including a loan under
this part; and''; and
(3) in section 347(c), by striking paragraph (2) and
inserting the following:
``(2) Report.--On an annual basis, the Advisory Board shall
prepare and submit to the authorizing committees a report on
the status of the historically Black colleges and universities
described in paragraph (1)(A) and an overview of all loans in
the capital financing program, including the most recent loans
awarded in the fiscal year in which the report is submitted.
The report shall include administrative and legislative
recommendations, as needed, for addressing the issues related
to construction financing facing historically Black colleges
and universities.''.
SEC. 304. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM.
Part E of title III (20 U.S.C. 1067 et seq.) is amended--
(1) in section 353(a)--
(A) in paragraph (1), by striking ``365(6)'' and
inserting ``359(6)'';
(B) in paragraph (2), by striking ``365(7)'' and
inserting ``359(7)'';
(C) in paragraph (3), by striking ``365(8)'' and
inserting ``359(8)''; and
(D) in paragraph (5), by striking ``365(9)'' and
inserting ``359(9)'';
(2) by striking subpart 2;
(3) by redesignating subpart 3 as subpart 2 and
redesignating sections 361 through 365 as sections 355 through
359, respectively;
(4) in section 355 (as so redesignated), by striking
paragraph (5);
(5) in section 356(a) (as so redesignated), by striking
``determined under section 361)'' and inserting ``determined
under section 355)''; and
(6) in section 359(2) (as so redesignated)--
(A) by inserting ``American'' after ``Black''; and
(B) by striking ``Hispanic (including'' and
inserting ``Hispanic American (including''.
SEC. 305. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
AND OTHER MINORITY-SERVING INSTITUTIONS.
Section 371 (20 U.S.C. 1067q) is amended--
(1) in subsection (b)(2)(D)(iii), by striking ``section
311(c)'' and inserting ``section 311(b)''; and
(2) in subsection (c)(9)(F)(ii), by striking ``part A of''.
SEC. 306. GENERAL PROVISIONS.
Part G of title III (20 U.S.C. 1068 et seq.) is amended--
(1) in section 391(b)--
(A) in paragraph (1), by striking ``institutional
management'' and all that follows through the semicolon
at the end and inserting ``institutional management,
and use the grant to provide for, and lead to,
institutional self-sustainability and growth (including
measurable objectives for the institution and the
Secretary to use in monitoring the effectiveness of
activities under this title);'';
(B) in paragraph (7)--
(i) by striking subparagraph (C) and
redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(ii) in subparagraph (D) (as so
redesignated), strike ``and'' at the end;
(C) by striking paragraph (8) and inserting the
following:
``(8) set forth a 5-year plan for improving the assistance
provided by the institution; and''; and
(D) by adding at the end the following:
``(9) submit such enrollment data as may be necessary to
demonstrate that the institution is a minority-serving
institution.'';
(2) in section 392--
(A) in subsection (b)--
(i) in the subsection heading, after
``Expenditures'' insert ``; Completion Rates'';
(ii) in paragraph (1), insert ``or
312(b)(3)'' after ``312(b)(1)(B)''; and
(iii) in paragraph (2)--
(I) in the matter preceding
subparagraph (A)--
(aa) by inserting ``or
312(b)(3)'' after
``312(b)(1)(B)''; and
(bb) by inserting
``American'' after
``Hispanic''; and
(II) in subparagraph (A), by
inserting ``or section 312(b)(3)''
after ``312(b)(1)''; and
(B) by striking subsection (c) and inserting the
following:
``(c) Waiver Authority With Respect to Institutions Located in an
Area Affected by a Major Disaster.--
``(1) Waiver authority.--Notwithstanding any other
provision of law, unless enacted with specific reference to
this section, in the case of a major disaster, the Secretary
may waive for affected institutions--
``(A) the eligibility data requirements set forth
in section 391(d) and section 521(e);
``(B) the allotment requirements under section 324;
and
``(C) the use of the funding formula developed
pursuant to section 326(f)(3);
``(2) Definitions.--In this subsection:
``(A) Affected institution.--The term `affected
institution' means an institution of higher education
that--
``(i) is--
``(I) a part A institution (which
term shall have the meaning given the
term `eligible institution' under
section 312(b) or section 502(a)(6));
or
``(II) a part B institution, as
such term is defined in section 322(2),
or as identified in section 326(e);
``(ii) is located in an area affected by a
major disaster; and
``(iii) is able to demonstrate that, as a
result of the impact of a major disaster, the
institution--
``(I) incurred physical damage;
``(II) has pursued collateral
source compensation from insurance, the
Federal Emergency Management Agency,
and the Small Business Administration,
as appropriate; and
``(III) was not able to fully
reopen in existing facilities or to
fully reopen to the pre-disaster
enrollment levels.
``(B) Major disaster.--The term `major disaster'
has the meaning given such term in section 102(2) of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122(2)).''; and
(3) in section 399, by striking subsection (a) and
inserting the following:
``(a) Authorizations.--
``(1) Part a.--(A) There are authorized to be appropriated
to carry out section 316, $27,599,000 for each of fiscal years
2019 through 2024.
``(B) There are authorized to be appropriated to carry out
section 317, $13,802,000 for each of fiscal years 2019 through
2024.
``(C) There are authorized to be appropriated to carry out
section 318, $9,942,000 for each of fiscal years 2019 through
2024.
``(D) There are authorized to be appropriated to carry out
section 319, $3,348,000 for each of fiscal years 2019 through
2024.
``(E) There are authorized to be appropriated to carry out
section 320, $3,348,000 for each of fiscal years 2019 through
2024.
``(2) Part b.--(A) There are authorized to be appropriated
to carry out part B (other than section 326), $244,694,000 for
each of fiscal years 2019 through 2024.
``(B) There are authorized to be appropriated to carry out
section 326, $63,281,000 for each of fiscal years 2019 through
2024.
``(3) Part d.--There are authorized to be appropriated to
carry out part D, $20,484,000 for each of fiscal years 2019
through 2024. Of the amount authorized, 1.63 percent shall be
reserved for administrative expenses.
``(4) Part e.--There are authorized to be appropriated to
carry out subpart 1 of part E, $9,648,000 for each of fiscal
years 2019 through 2024.''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
SEC. 401. FEDERAL PELL GRANTS.
(a) Reauthorization.--Section 401(a) (20 U.S.C. 1070a(a)) is
amended--
(1) by striking ``fiscal year 2017'' and inserting ``fiscal
year 2024''; and
(2) by inserting ``an eligible program at'' after
``attendance at''.
(b) Federal Pell Grant Bonus.--
(1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is
amended--
(A) in paragraph (7)(A)(iii)--
(i) by inserting ``and paragraph (9)''
after ``this paragraph''; and
(ii) by inserting before the semicolon at
the end the following: ``and to provide the
additional amount required by paragraph (9)'';
and
(B) by adding at the end the following:
``(9) Federal pell grant bonus.--
``(A) In general.--Notwithstanding any other
provision of this subsection and from the amounts made
available pursuant to paragraph (7)(A)(iii) for the
purposes of this paragraph, an eligible student who is
receiving a Federal Pell Grant for an award year shall
receive an amount in addition to such Federal Pell
Grant for each payment period of such award year for
which the student--
``(i) is receiving such Federal Pell Grant
as long as the amount of such Federal Pell
Grant does not exceed the maximum amount of a
Federal Pell Grant award determined under
paragraph (2)(A) for such award year; and
``(ii) is carrying a work load that--
``(I) is greater than the normal
full-time work load for the course of
study the student is pursuing, as
determined by the institution of higher
education; and
``(II) will lead to the completion
of not less than 30 credit hours (or
the equivalent coursework) upon the
completion of the final payment period
for which the student is receiving the
Federal Pell Grant described in clause
(i).
``(B) Amount of bonus.--The amount provided to an
eligible student under subparagraph (A) for an award
year may not exceed $300, which shall be equally
divided among each payment period of such award year
described in clauses (i) and (ii) of subparagraph
(A).''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect with respect to award year 2018-2019 and each
succeeding award year.
(c) Period of Eligibility for Grants.--Section 401(c) (20 U.S.C.
1070a(c)) is amended by adding at the end the following:
``(6)(A) The Secretary shall issue to each student
receiving a Federal Pell Grant, an annual status report which
shall--
``(i) inform the student of the remaining period
during which the student may receive Federal Pell
Grants in accordance with paragraph (5), and provide
access to a calculator to assist the student in making
such determination;
``(ii) include an estimate of the Federal Pell
Grant amounts which may be awarded for such remaining
period based on the student's award amount determined
under subsection (b)(2)(A) for the most recent award
year;
``(iii) explain how the estimate was calculated and
any assumptions underlying the estimate;
``(iv) explain that the estimate may be affected if
there is a change--
``(I) in the student's financial
circumstances; or
``(II) the availability of Federal funding;
and
``(v) describe how the remaining period during
which the student may receive Federal Pell Grants will
be affected by whether the student is enrolled as a
full-time student.
``(B) Nothing in this paragraph shall be construed to
prohibit an institution from offering additional counseling to
a student with respect to Federal Pell Grants, but such
counseling shall not delay or impede disbursement of a Federal
Pell Grant award to the student.''.
(d) Distribution of Grants to Students.--Section 401(e) (20 U.S.C.
1070a(e)) is amended by striking the first sentence and inserting
``Payments under this section shall be made in the same manner as
disbursements under section 465(a).''.
(e) Institutional Ineligibility Based on Default Rates.--Section
401(j) of such Act (20 U.S.C. 1070a(j)) is amended by adding at the end
the following:
``(3) Sunset.--The provisions of this subsection shall not
apply after the transition period described in section
481B(e)(3).''.
(f) Prevention of Fraud.--Section 401 (20 U.S.C. 1070a) is amended
by adding at the end the following:
``(k) Prevention of Fraud.--
``(1) In general.--No Federal Pell Grant shall be awarded
under this subpart to any individual who, with respect to not
less than any 3 payment periods, for each such payment period--
``(A) received at least a portion of a Federal Pell
Grant award; and
``(B) did not complete any credit hours (or credit
hour equivalencies) for which the individual was
enrolled.
``(2) Waiver.--The financial aid administrator at an
institution may waive the requirement of paragraph (1), if the
financial aid administrator--
``(A) determines that the student was unable to
complete the credit hours described in paragraph (1)(B)
due to circumstances beyond the student's control; and
``(B) makes and documents such a determination on
an individual basis.
``(3) Circumstances described.--For purposes of paragraph
(2), circumstances beyond the student's control--
``(A) may include the student withdrawing from
classes due to illness; and
``(B) shall not include withdrawing to avoid a
particular grade.''.
(g) Report on Costs of Federal Pell Grant Program.--Section 401 (20
U.S.C. 1070a) is further amended, as amended by subsections (a) through
(f), by adding at the end the following:
``(l) Report on Costs of Federal Pell Grant Program.--Not later
than October 31 of each year, the Secretary shall prepare and submit a
report to the authorizing committees that includes the following
information with respect to spending for the Federal Pell Grant program
for the preceding fiscal year:
``(1) The total obligations and expenditures for the
program for such fiscal year.
``(2) A comparison of the total obligations and
expenditures for the program for such fiscal year--
``(A) to the most recently available Congressional
Budget Office baseline for the program; and
``(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to
the Congressional Budget Office cost estimate for the
program included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act, as
approved by the Committee.
``(3) The total obligations and expenditures for the
maximum Federal Pell Grant for which a student is eligible, as
specified in the last enacted appropriation Act applicable to
such fiscal year.
``(4) A comparison of the total obligations and
expenditures for the maximum Federal Pell Grant for which a
student is eligible, as specified in the last enacted
appropriation Act applicable to such fiscal year--
``(A) to the most recently available Congressional
Budget Office baseline for such maximum Federal Pell
Grant; and
``(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to
the Congressional Budget Office cost estimate for such
maximum Federal Pell Grant included in the report of
the Committee on Education and the Workforce of the
House of Representatives accompanying the PROSPER Act,
as approved by the Committee.
``(5) The total mandatory obligations and expenditures for
the amount of the increase in such maximum Federal Pell Grant
required by subsection (b)(7)(B) for such fiscal year.
``(6) A comparison of the total mandatory obligations and
expenditures for the amount of the increase in such maximum
Federal Pell Grant required by subsection (b)(7)(B)--
``(A) to the most recently available Congressional
Budget Office baseline for the increase; and
``(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to
the Congressional Budget Office cost estimate for the
increase included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act, as
approved by the Committee.
``(7) The total mandatory obligations and expenditures for
the Federal Pell Grant Bonus required by subsection (b)(9) for
such fiscal year.
``(8) A comparison of the total mandatory obligations and
expenditures for the Federal Pell Grant Bonus required by
subsection (b)(9) for such fiscal year--
``(A) to the most recently available Congressional
Budget Office baseline for such bonus; and
``(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to
the Congressional Budget Office cost estimate for such
bonus included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act, as
approved by the Committee.''.
SEC. 402. FEDERAL TRIO PROGRAMS.
(a) Program Authority; Authorization of Appropriations.--Section
402A (20 U.S.C. 1070a-11) is amended--
(1) in subsection (c)--
(A) by amending subparagraph (A) of paragraph (2)
to read as follows:
``(A) Accountability for outcomes.--In making
grants under this chapter, the Secretary shall comply
with the following requirements:
``(i) The Secretary shall consider each
applicant's prior success in achieving high
quality service delivery, as determined under
subsection (f), under the particular program
for which funds are sought. The level of
consideration given the factor of prior success
in achieving high quality service delivery
shall not vary from the level of consideration
given such factor during fiscal years 1994
through 1997, except that grants made under
section 402H shall not be given such
consideration.
``(ii) The Secretary shall not give points
for prior success in achieving high quality
service delivery to any current grantee that,
during the then most recent period for which
funds were provided, did not meet or exceed two
or more objectives established in the eligible
entity's application based on the performance
measures described in subsection (f).
``(iii) From the amounts awarded under
subsection (g) for a program under this chapter
(other than a program under section 402G and
402H) for any fiscal year in which the
Secretary conducts a competition for the award
of grants or contracts under such programs, the
Secretary shall reserve not less than 10
percent of such available amount to award
grants or contracts to applicants who have not
previously received a grant or contract under
this chapter. If the Secretary determines that
there are an insufficient number of qualified
applicants to use the full amount reserved
under the preceding sentence, the Secretary
shall use the remainder of such amount to award
grants or contracts to applicants who have
previously received a grant or contract under
this chapter.'';
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) by striking ``as provided in
subparagraph (B)'' and inserting ``as
provided in subparagraph (C)'';
(II) by striking ``experience'' and
inserting ``success in achieving high
quality service delivery'';
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A)
the following new subparagraph:
``(B) To ensure that congressional priorities in conducting
competitions for grants and contracts under this chapter are
implemented, the Secretary shall not impose additional criteria
for the prioritization of applications for such grants or
contracts (including additional competitive, absolute, or other
criteria) beyond the criteria described in this chapter.'';
(C) in paragraph (6)--
(i) by striking the period at the end of
the second sentence and inserting ``, as long
as the program is serving a different
population or a different campus.'';
(ii) by striking ``the programs authorized
by'' and inserting ``sections 402B, 402C, 402D,
and 402F of'';
(iii) by striking ``The Secretary shall
encourage'' and inserting the following:
``(A) The Secretary shall encourage'';
(iv) by striking ``The Secretary shall
permit'' and inserting the following:
``(B) The Secretary shall permit'';
(D) in paragraph (7), by striking ``8 months'' each
place it appears and inserting ``90 days'';
(E) in paragraph (8)--
(i) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``Not later than 180
days after the date of enactment of the
Higher Education Opportunity Act,'' and
inserting ``Not later than 90 days
before the commencement of each
competition for a grant under this
chapter,'';
(II) in clause (iii), by striking
``prior experience points for high
quality service delivery are awarded''
and inserting ``application scores are
adjusted for prior success in achieving
high quality service delivery''; and
(III) in clause (v), by striking
``prior experience points for'' and
inserting ``the adjustment in scores
for prior success in achieving'';
(ii) by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph
(B); and
(iii) in subparagraph (B), as so
redesignated--
(I) in clause (iii)--
(aa) in the matter
preceding subclause (I), by
striking ``prior experience
points for'' and inserting
``points for prior success in
achieving''; and
(bb) in subclause (II), by
striking ``prior experience
points'' and inserting ``points
for prior success in achieving
high quality service
delivery''; and
(II) in clause (vi), by inserting
before the period at the end the
following: ``from funds reserved under
subsection (g)''; and
(F) by adding at the end the following:
``(9) Matching requirement.--
``(A) In general.--The Secretary shall not approve
an application submitted under section 402B, 402C,
402D, 402E, or 402F unless such application--
``(i) provides that the eligible entity
will provide, from State, local, institutional,
or private funds, not less than 20 percent of
the cost of the program, which matching funds
may be provided in cash or in kind and may be
accrued over the full duration of the grant
award period, except that the eligible entity
shall make substantial progress towards meeting
the matching requirement in each year of the
grant award period;
``(ii) specifies the methods by which
matching funds will be paid; and
``(iii) includes provisions designed to
ensure that funds provided under this chapter
shall supplement and not supplant funds
expended for existing programs.
``(B) Special rule.--Notwithstanding the matching
requirement described in subparagraph (A), the
Secretary may by regulation modify the percentage
requirement described in subparagraph (A). The
Secretary may approve an eligible entity's request for
a reduced match percentage--
``(i) at the time of application if the
eligible entity demonstrates significant
economic hardship that precludes the eligible
entity from meeting the matching requirement;
or
``(ii) in response to a petition by an
eligible entity subsequent to a grant award
under section 402B, 402C, 402D, 402E, or 402F
if the eligible entity demonstrates that the
matching funds described in its application are
no longer available and the eligible entity has
exhausted all revenues for replacing such
matching funds.'';
(2) in subsection (d)(3), by adding at the end the
following new sentence: ``In addition, the Secretary shall host
at least one virtual, interactive education session using
telecommunications technology to ensure that any interested
applicants have access to technical assistance.'';
(3) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``or''
at the end;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following
new subparagraph:
``(E) documentation that the student has been determined to
be eligible for a Federal Pell Grant under section 401.''; and
(B) in paragraph (2)--
(i) in subparagraph (C), by striking ``or''
at the end;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following
new subparagraph:
``(E) documentation that the student has been determined to
be eligible for a Federal Pell Grant under section 401.'';
(4) in subsection (f)--
(A) in the heading of paragraph (1), by striking
``prior experience'' and inserting ``accountability for
outcomes'';
(B) in paragraph (1) by striking ``experience of''
and inserting ``success in achieving'';
(C) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (iv) by striking
``rigorous secondary school program of
study that will make such students
eligible for programs such as the
Academic Competitiveness Grants
Program'' and inserting ``secondary
school program of study that will
prepare such students to enter
postsecondary education without the
need for remedial education'';
(II) by redesignating clauses (v)
and (vi) as clauses (vi) and (vii),
respectively; and
(III) by inserting after clause
(iv) the following new clause:
``(v) the completion of financial aid
applications, including the Free Application
for Federal Student Aid described in section
483(a) and college admission applications;'';
(ii) in subparagraph (B)--
(I) by redesignating clauses (i),
(ii), (iii), (iv), (v), (vi), (vii) as
subclauses (I), (II), (III), (IV),
(VII), (IX), and (X), respectively;
(II) by inserting after subclause
(IV), as so redesignated, the
following:
``(V) the reentry into secondary
school of such students;
``(VI) the enrollment of such
students into a general educational
development (commonly known as a `GED')
program;''.
(III) in subclause (VII), as so
redesignated, by striking ``rigorous
secondary school program of study that
will make such students eligible for
programs such as the Academic
Competitiveness Grants Program'' and
inserting ``secondary school program of
study that will prepare such students
to enter postsecondary education
without the need for remedial
education'';
(IV) by inserting after subclause
(VII), as so redesignated, the
following new subclause:
``(VIII) the completion of financial aid
applications, including the Free Application
for Federal Student Aid described in section
483(a) and college admission applications;'';
(V) by striking ``(B) For programs
authorized under section 402C,'' and
inserting ``(B)(i) For programs
authorized under section 402C, except
in the case of projects that
specifically target veterans,''; and
(VI) by adding at the end the
following new clauses:
``(ii) For programs authorized under section 402C
that specifically target veterans, the extent to which
the eligible entity met or exceeded the entity's
objectives for such program with respect to--
``(I) the delivery of service to a total
number of students served by the program, as
agreed upon by the entity and the Secretary for
the period;
``(II) such students' academic performance,
as measured by standardized tests;
``(III) the retention and completion of
participants in the project;
``(IV) the provision of assistance to
students served by the program in completing
financial aid applications, including the Free
Application for Federal Student Aid described
in section 483(a) and college admission
applications;
``(V) the enrollment of such students in an
institution of higher education; and
``(VI) to the extent practicable, the
postsecondary education completion rate of such
students.'';
(iii) in subparagraph (C)(ii)--
(I) in subclause (I), by striking
``in which such students were
enrolled'' and inserting ``within six
years of the initial enrollment of such
students in the program''; and
(II) in subclause (II);
(aa) in the matter
preceding item (aa), by
striking ``offer a
baccalaureate degree'' and
inserting ``primarily offer
baccalaureate degrees''; and
(bb) in item (aa), by
striking ``students; and'' and
inserting ``students within 4
years of the initial enrollment
of such students in the
program; or'';
(iv) in subparagraph (D)--
(I) in clause (iii), by striking
``; and'' and inserting ``within two
years of receiving a baccalaureate
degree;'';
(II) in clause (iv), by striking
``study and'' and all that follows
through the period and inserting
``study; and''; and
(III) by adding at the end the
following new clause:
``(v) the attainment of doctoral degrees by
former program participants within 10 years of
receiving a baccalaureate degree.''; and
(v) in subparagraph (E)(ii), by inserting
``, or re-enrollment,'' after ``enrollment'';
(5) in subsection (g)--
(A) in the first sentence, by striking
``$900,000,000 for fiscal year 2009 and such sums as
may be necessary for'' and inserting ``$900,000,000 for
fiscal year 2019 and'';
(B) in the second sentence--
(i) by striking ``no more than \1/2\ of 1''
and inserting ``not more than 1'';
(ii) by striking ``and to provide
technical'' and inserting ``to provide
technical''; and
(iii) by inserting before the period at the
end the following: ``, and to support
applications funded under the process outlined
in subsection (c)(8)(B)''; and
(C) by striking the last sentence; and
(6) in subsection (h)--
(A) by striking ``(5) veteran eligibility.--No
veteran'' and inserting the following:
``(i) Veteran Eligibility.--(1) No Veteran'';
(B) in paragraph (6), by striking ``of paragraph
(5)'' and inserting ``of paragraph (1)'';
(C) by striking ``(6) waiver.--The Secretary'' and
inserting the following:
``(2) The Secretary''.
(b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following
new paragraph:
``(3) to advise such youths on the postsecondary
institution selection process, including consideration of the
financial aid awards offered and the potential loan burden
required; and'';
(2) in subsection (b), by striking paragraph (6) and
inserting the following:
``(6) connections to education or counseling services
designed to--
``(A) improve the financial literacy and economic
literacy of students or the students' parents in order
to aid them in making informed decisions about how to
best finance their postsecondary education; and
``(B) assist students and families regarding career
choice.'';
(3) in subsection (c)(2), by striking ``career'' and
inserting ``academic''; and
(4) in subsection (d)--
(A) by redesignating paragraphs (2), (3), and (4)
as paragraphs (3), (4), and (5), respectively;
(B) by inserting after paragraph (1) the following
new paragraph:
``(2) require an assurance that the remaining youths
participating in the project proposed to be carried out in any
application be low-income individuals, first generation college
students, or students who have a high risk for academic
failure;'';
(C) in paragraph (4), as so redesignated--
(i) by inserting ``, section 402C,'' after
``under this section''; and
(ii) by striking ``and'' at the end;
(D) in paragraph (5), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(E) by adding at the end the following:
``(6) require the grantee to maintain, to the extent
practicable, a record of any services participants receive
during the project year from another program under this chapter
or other federally funded programs serving similar populations
to minimize the duplication of services.''.
(c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
(1) in subsection (b)--
(A) in paragraph (4), by adding ``and'' at the end;
and
(B) by striking paragraphs (5) and (6) and
inserting the following:
``(5) education or counseling services designed to--
``(A) improve the financial literacy and economic
literacy of students or the students' parents in order
to aid them in making informed decisions about how to
best finance their postsecondary education; and
``(B) assist students and their families regarding
career choice.'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``youth'' and
inserting ``participants'';
(B) in paragraph (2), by striking ``youth
participating in the project'' and inserting ``project
participants''; and
(C) in paragraph (5), by striking ``youth
participating in the project'' and inserting ``project
participants'';
(3) in subsection (e)--
(A) in paragraph (4), by striking ``and'' at the
end;
(B) by redesignating paragraph (5) as paragraph
(6); and
(C) by inserting after paragraph (4) the following:
``(5) require an assurance that individuals participating
in the project proposed in any application do not have access
to services from another project funded under this section,
section 402B, or section 402F;'';
(D) in paragraph (6), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(E) by adding at the end the following:
``(6) for purposes of minimizing the duplication of
services, require that the grantee maintain, to the extent
practicable, a record of any services received by participants
during the program year from another program funded under this
chapter, or any other Federally funded program that serves
populations similar to the populations served by programs under
this chapter.''; and
(4) by striking subsection (g) and redesignating subsection
(h) as subsection (g).
(d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is
amended--
(1) in subsection (a)(3), by inserting ``low-income and
first generation college students, including'' after ``success
of''; and
(2) in subsection (b)(4)--
(A) by striking ``, including financial'' and
inserting ``, including--
``(A) financial'';
(B) by adding at the end the following:
``(B) basic personal income, household money
management, and financial planning skills; and
``(C) basic economic decisionmaking skills;''; and
(C) in subsection (e)--
(i) in paragraph (5), by striking ``and''
at the end;
(ii) by redesignating paragraph (6) as
paragraph (7);
(iii) by inserting after paragraph (5) the
following:
``(6) require the grantee to maintain, to the extent
practicable, a record of any services participants receive
during the project year from another program under this chapter
or other federally funded programs serving similar populations
to minimize the duplication of services; and''.
(e) Postbaccalaureate Achievement Program Authority.--Section 402E
(20 U.S.C. 1070a-15) is amended--
(1) in subsection (b)(2), by striking ``summer
internships'' and inserting ``internships and faculty-led
research experiences''; and
(2) in subsection (d)--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4)--
(i) by striking ``summer'';
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) the grantee to maintain, to the extent practicable, a
record of any services participants receive during the project
year from another program under this chapter or other federally
funded program serving similar populations to minimize the
duplication of services.''; and
(3) in subsection (g), by striking ``2009 through 2014''
and inserting ``2019 through 2024''.
(f) Educational Opportunity Centers.--Section 402F (20 U.S.C.
1070a-16) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``or re-enter''
after ``pursue''; and
(B) in paragraph (3), by striking ``of students''
and inserting ``of such persons'';
(2) in subsection (b)(5), by striking ``students;''and
inserting the following: ``students, including--
``(A) financial planning for postsecondary
education;
``(B) basic personal income, household money
management, and financial planning skills; and
``(C) basic economic decisionmaking skills;''; and
(3) in subsection (c)--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following
new paragraph:
``(2) require an assurance that the remaining persons
participating in the project proposed to be carried out under
any application be low-income individuals or first generation
college students;'';
(C) in paragraph (3), as so redesignated, by
striking ``and'' at the end;
(D) in paragraph (4), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(E) by adding at the end the following:
``(5) require the grantee to maintain, to the extent
practicable, a record of any services participants receive
during the project year from another program under this chapter
or other federally funded program serving similar populations
to minimize the duplication of services.''.
(g) Staff Development Activities.--Section 402G(b) (20 U.S.C.
1070a-17(b)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by inserting ``webinars and online classes,''
after ``seminars, workshops,''; and
(B) by striking ``directors'' and inserting
``staff''; and
(2) in paragraph (3), by inserting ``and innovative'' after
``model''.
(h) Reports, Evaluations, and Grants for Project Improvement and
Dissemination.--Subsection (b) of section 402H (20 U.S.C. 1070a-18) is
amended to read as follows:
``(b) Evaluations.--
``(1) In general.--For the purpose of improving the
effectiveness of the programs assisted under this chapter, the
Secretary shall make grants to or enter into contracts with one
or more organizations to--
``(A) evaluate the effectiveness of the programs
assisted under this chapter; and
``(B) disseminate information on the impact of the
programs in increasing the education level of
participants, as well as other appropriate measures.
``(2) Issues to be evaluated.--The evaluations described in
paragraph (1) shall measure the effectiveness of programs
funded under this chapter in--
``(A) meeting or exceeding the stated objectives
regarding the outcome criteria under subsection (f) of
section 402A;
``(B) enhancing the access of low-income
individuals and first-generation college students to
postsecondary education;
``(C) preparing individuals for postsecondary
education;
``(D) comparing the level of education completed by
students who participate in the programs funded under
this chapter with the level of education completed by
students of similar backgrounds who do not participate
in such programs;
``(E) comparing the retention rates, dropout rates,
graduation rates, and college admission and completion
rates of students who participate in the programs
funded under this chapter with the rates of students of
similar backgrounds who do not participate in such
programs; and
``(F) such other issues as the Secretary considers
appropriate for inclusion in the evaluation.
``(3) Program methods.--Such evaluations shall also
investigate the effectiveness of alternative and innovative
methods within programs funded under this chapter of increasing
access to, and retention of, students in postsecondary
education.
``(4) Results.--The Secretary shall submit to the
authorizing committees--
``(A) an interim report on the progress and
preliminary results of the evaluation of each program
funded under this chapter not later than 2 years
following the date of enactment of the PROSPER Act; and
``(B) a final report not later than 3 years
following the date of enactment of such Act.
``(5) Public availability.--All reports and underlying data
gathered pursuant to this subsection shall be made available to
the public upon request, in a timely manner following
submission of the applicable reports under this subsection,
except that any personally identifiable information with
respect to a student participating in a program or project
assisted under this chapter shall not be disclosed or made
available to the public.''.
(i) IMPACT Grants.--Part A of title IV (20 U.S.C. 1070 et seq.) is
amended by inserting after section 402H (20 U.S.C. 1070a-28) the
following:
``SEC. 402I. IMPACT GRANTS.
``(a) In General.--From funds reserved under subsection (e), the
Secretary shall make grants to improve postsecondary access and
completion rates for qualified individuals from disadvantaged
backgrounds. These grants shall be known as innovative measures
promoting postsecondary access and completion grants or `IMPACT Grants'
and allow eligible entities to--
``(1) create, develop, implement, replicate, or take to
scale evidence-based, field-initiated innovations, including
through pay-for-success initiatives, to serve qualified
individuals from disadvantaged backgrounds and improve student
outcomes; and
``(2) rigorously evaluate such innovations, in accordance
with subsection (d).
``(b) Description of Grants.--The grants described in subsection
(a) shall include--
``(1) early-phase grants to fund the development,
implementation, and feasibility testing of a program, which
prior research suggests has a promise, for the purpose of
determining whether the program can successfully improve
postsecondary access and completion rates;
``(2) mid-phase grants to fund implementation and a
rigorous evaluation of a program that has been successfully
implemented under an early-phase grant described in paragraph
(1); and
``(3) expansion grants to fund implementation and a
rigorous replication evaluation of a program that has been
found to produce sizable, important impacts under a mid-phase
grant described in paragraph (2) for the purposes of--
``(A) determining whether such outcomes can be
successfully reproduced and sustained over time; and
``(B) identifying the conditions in which the
project is most effective.
``(c) Requirements for Approval of Applications.--To receive a
grant under this section, an eligible entity shall submit an
application to the Secretary at such time, and in such manner as the
Secretary may require, which shall include--
``(1) an assurance that not less than two-thirds of the
individuals who will participate in the program proposed to be
carried out with the grant will be--
``(A) low-income individuals who are first
generation college students; or
``(B) individuals with disabilities;
``(2) an assurance that any other individuals (not
described in paragraph (1)) who will participate in such
proposed program will be--
``(A) low-income individuals;
``(B) first generation college students; or
``(C) individuals with disabilities;
``(3) a detailed description of the proposed program,
including how such program will directly benefit students;
``(4) the number of projected students to be served by the
program;
``(5) how the program will be evaluated; and
``(6) an assurance that the individuals participating in
the project proposed are individuals who do not have access to
services from another programs funded under this section.
``(d) Evaluation.--Each eligible entity receiving a grant under
this section shall conduct an independent evaluation of the
effectiveness of the program carried out with such grant and shall
submit to the Secretary, on an annual basis, a report that includes--
``(1) a description of how funds received under this
section were used;
``(2) the number of students served by the project carried
out under this section; and
``(3) a quantitative analysis of the effectiveness of the
project.
``(e) Funding.--From amounts appropriated under section 402A(g),
the Secretary shall reserve not less than 10 percent of such funds to
carry out this section.''.
SEC. 403. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS.
(a) Early Intervention and College Awareness Program.--Section 404A
(20 U.S.C. 1070a-21) is amended--
(1) in subsection (a)(1), by striking ``academic support''
and inserting ``academic support for college readiness'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``new'' before
``awards''; and
(B) in paragraph (3)--
(i) by amending subparagraph (A) to read as
follows:
``(A) give priority to eligible entities that have
a prior, demonstrated commitment to early intervention
leading to college access and readiness through
collaboration and replication of successful strategies;
and''; and
(ii) in subparagraph (B), by striking ``the
Higher Education Opportunity Act'' and
inserting ``the PROSPER Act''; and
(C) by adding at the end the following:
``(4) Multiple award prohibition.--Eligible entities
described in subsection (c)(1) that receive a grant under this
chapter shall not be eligible to receive an additional grant
under this chapter until after the date on which the initial
grant period expires.''; and
(3) in subsection (c)(2)(B), by striking ``institutions or
agencies sponsoring programs authorized under subpart 4,''.
(b) Applications.--Section 404C (20 U.S.C. 1070a-23) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``, contain or be
accompanied by such information or
assurances,''; and
(II) by striking ``, at a
minimum'';
(ii) by amending subparagraph (B) to read
as follows:
``(B) describe, in the case of an eligible entity
described in section 404A(c)(2) that chooses to provide
scholarships, or an eligible entity described in
section 404A(c)(1)--
``(i) the eligible entity's plan to
establish or maintain a financial assistance
program in accordance with the requirements of
section 404E, including any eligibility
criteria other than the criteria described in
section 404E(g), such as--
``(I) demonstrating financial need;
``(II) meeting and maintaining
satisfactory academic progress; and
``(III) other criteria aligned with
State and local goals to increase
postsecondary readiness, access, and
completion; and
``(ii) how the eligible entity will meet
the other requirements of section 404E;'';
(iii) by striking subparagraph (H); and
(iv) by redesignating subparagraphs (I) and
(J) as subparagraphs (H) and (I), respectively;
and
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Special rule.--Notwithstanding the matching
requirement described in paragraph (1)(A), the Secretary may--
``(A) at the time of application--
``(i) approve a Partnership applicant's
request for a waiver of up to 75 percent of the
matching requirement for up to two years if the
applicant demonstrates in its application a
significant economic hardship that stems from a
specific, exceptional, or uncontrollable event,
such as a natural disaster, that has a
devastating effect on the members of the
Partnership and the community in which the
project would operate;
``(ii)(I) approve a Partnership applicant's
request to waive up to 50 percent of the
matching requirement for up to two years if the
applicant demonstrates in its application a
pre-existing and an on-going significant
economic hardship that precludes the applicant
from meeting its matching requirement; and
``(II) provide tentative approval of an
applicant's request for a waiver under
subclause (I) for all remaining years of the
project period;
``(iii) approve a Partnership applicant's
request in its application to match its
contributions to its scholarship fund,
established under section 404E, on the basis of
two non-Federal dollars for every one dollar of
Federal funds provided under this chapter; or
``(iv) approve a request by a Partnership
applicant that has three or fewer institutions
of higher education as members to waive up to
70 percent of the matching requirement if the
Partnership applicant includes--
``(I) a fiscal agent that is
eligible to receive funds under title
V, or part B of title III, or section
316 or 317, or a local educational
agency;
``(II) only participating schools
with a 7th grade cohort in which at
least 75 percent of the students are
eligible for free or reduced-price
lunch under the Richard B. Russell
National School Lunch Act; and
``(III) only local educational
agencies in which at least 50 percent
of the students enrolled are eligible
for free or reduced-price lunch under
the Richard B. Russell National School
Lunch Act; and
``(B) after a grant is awarded, approve a
Partnership grantee's written request for a waiver of
up to----
``(i) 50 percent of the matching
requirement for up to two years if the grantee
demonstrates that--
``(I) the matching contributions
described for those two years in the
grantee's approved application are no
longer available; and
``(II) the grantee has exhausted
all funds and sources of potential
contributions for replacing the
matching funds; or
``(ii) 75 percent of the matching
requirement for up to two years if the grantee
demonstrates that matching contributions from
the original application are no longer
available due to an uncontrollable event, such
as a natural disaster, that has a devastating
economic effect on members of the Partnership
and the community in which the project would
operate.
``(3) Additional terms.--
``(A) On-going economic hardship.--In determining
whether a Partnership applicant is experiencing an on-
going economic hardship that is significant enough to
justify a waiver under subparagraphs (A)(i) and
(A)(ii)(I) of paragraph (2), the Secretary may consider
documentation of the following:
``(i) Severe distress in the local economy
of the community to be served by the grant
(e.g., there are few employers in the local
area, large employers have left the local area,
or significant reductions in employment in the
local area).
``(ii) Local unemployment rates that are
higher than the national average.
``(iii) Low or decreasing revenues for
State and County governments in the area to be
served by the grant.
``(iv) Significant reductions in the
budgets of institutions of higher education
that are participating in the grant.
``(v) Other data that reflect a significant
economic hardship for the geographical area
served by the applicant.
``(B) Exhaustion of funds.--In determining whether
a Partnership grantee has exhausted all funds and
sources of potential contributions for replacing
matching funds under paragraph (2)(B), the secretary
may consider the grantee's documentation of key factors
that have had a direct impact on the grantee such as
the following:
``(i) A reduction of revenues from State
government, County government, or the local
educational agency.
``(ii) An increase in local unemployment
rates.
``(iii) Significant reductions in the
operating budgets of institutions of higher
education that are participating in the grant.
``(iv) A reduction of business activity in
the local area (e.g., large employers have left
the local area).
``(v) Other data that reflect a significant
decrease in resources available to the grantee
in the local geographical area served by the
grantee.
``(C) Renewal of waiver.--A Partnership applicant
that receives a tentative approval of a waiver under
subparagraph (A)(ii)(II) of paragraph (2) for more than
two years under this paragraph must submit to the
Secretary every two years by such time as the Secretary
may direct documentation that demonstrates that--
``(i) the significant economic hardship
upon which the waiver was granted still exists;
and
``(ii) the grantee tried diligently, but
unsuccessfully, to obtain contributions needed
to meet the matching requirement.
``(D) Multiple waivers.--If a grantee has received
one or more waivers under paragraph (2), the grantee
may request an additional waiver of the matching
requirement under this subsection not earlier than 60
days before the expiration of the grantee's existing
waiver.''.
(c) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``financial aid
for'' and inserting ``financial aid, including loans,
grants, scholarships, and institutional aid for'';
(B) in paragraph (2) by striking ``rigorous and
challenging curricula and coursework, in order to'' and
inserting ``curricula and coursework designed to'';
(C) by redesignating paragraphs (3) and (4) as
paragraphs (5) and (6), respectively;
(D) by inserting after paragraph (2) the following:
``(3) Providing information to students and families about
the advantages of obtaining a postsecondary education.
``(4) Providing tutors and mentors, who may include adults
or former participants of a program under this chapter, for use
by eligible students in need.''; and
(E) in paragraph (5), as so redesignated, by
striking ``Improving'' and inserting ``Providing
supportive services to improve''; and
(2) in subsection (b)--
(A) by striking paragraph (1);
(B) by redesignating paragraphs (2) through (15) as
paragraphs (1) through (14), respectively;
(C) in paragraph (3), as so redesignated, by
striking ``rigorous'' each place it appears; and
(D) in paragraph (9), as so redesignated--
(i) by redesignating subparagraphs (E)
through (K) as subparagraphs (F) through (L),
respectively; and
(ii) by inserting after subparagraph (D)
the following:
``(E) providing counseling or referral services to
address the behavioral, social-emotional, and mental
health needs of at-risk students;'';
(iii) in subparagraph (I), as so
redesignated, by striking ``skills
assessments'' and inserting ``skills,
cognitive, non-cognitive, and credit-by-
examination assessments'';
(iv) in subparagraph (K), as so
redesignated, by striking ``and'' at the end;
(v) in subparagraph (L), as so
redesignated, by striking the period at the end
and inserting ``; and''; and
(vi) by adding at the end the following:
``(M) capacity building activities that create
college-going cultures in participating schools and
local education agencies.'';
(E) by adding at the end the following:
``(15) Creating or expanding drop-out recovery programs
that allow individuals who drop out of school to complete a
regular secondary school diploma and begin college-level
work.''; and
(F) in subsection (c)--
(i) in paragraph (3), by inserting ``and
technical assistance'' after ``administrative
support''; and
(ii) by striking paragraph (9); and
(3) in subsection (e), by striking ``institutions and
agencies sponsoring programs authorized under subpart 4,''.
(d) Scholarship Requirements.--Section 404E (20 U.S.C. 1070a-25) is
amended--
(1) in subsection (a)(1), by inserting ``described in
section 404C(a)(2)(B)(i)'' after ``financial assistance
program''; and
(2) in subsection (e)(1), by striking ``an amount'' and all
that follows through the period at the end and inserting the
following: ``an estimated amount that is based on the
requirements of the financial assistance program of the
eligible entity described in section 404C(a)(2)(B)(i).''
(e) Evaluation and Report.--Section 404G(b) (20 U.S.C. 1070a-27(b))
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''
(3) by adding after paragraph (2) the following:
``(3) include the following metrics:
``(A) the number of students completing the Free
Application for Federal Student Aid;
``(B) the enrollment of participating students in
curricula and coursework designed to reduce the need
for remedial coursework at the postsecondary level;
``(C) if applicable, the number of students
receiving a scholarship;
``(D) the graduation rate of participating students
from high school;
``(E) the enrollment of participating students into
postsecondary education; and
``(F) such other information as the Secretary may
require.''.
(f) Authorization of Appropriations.--Section 404H (20 U.S.C.
1070a-28) is amended by striking ``$400,000,000 for fiscal year 2009
and such sums as may be necessary for each of the five succeeding
fiscal years'' and inserting ``$339,754,000 for fiscal year 2019 and
each of the five succeeding fiscal years''.
SEC. 404. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN
MIGRANT AND SEASONAL FARMWORK.
Section 418A(i) (20 U.S.C. 1070d--2(i)) is amended by striking
``$75,000,000'' and all that follows through the period at the end and
inserting ``$44,623,000 for each of fiscal years 2019 through 2024.''.
SEC. 405. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
Section 419N (20 U.S.C. 1070e) is amended--
(1) in the heading of paragraph (6) of subsection (b), by
striking ``Construction'' and inserting ``Rule of
construction'';
(2) in subsection (c)--
(A) in paragraph (4), by striking ``assisted'' and
inserting ``funded'';
(B) in paragraph (5)--
(i) by striking ``resources, including
technical expertise'' and inserting
``resources, including non-Federal resources,
technical expertise,''; and
(ii) by striking ``the use of the'' and
inserting ``these''; and
(C) in paragraph (9)--
(i) by inserting ``provisional status,''
after ``approval,''; and
(ii) by striking ``; and'' and inserting
``prior to serving children and families;
and'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``local'' and inserting
``non-Federal, local,''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) coordinate with other community programs where
appropriate to improve the quality and limit cost of the
campus-based program.'';
(4) by amending subsection (e) to read as follows:
``(e) Reporting Requirements; Continuing Eligibility.--
``(1) Reporting requirements.--
``(A) Reports.--Each institution of higher
education receiving a grant under this section shall
report to the Secretary annually. The Secretary shall
annually publish such reports on a publicly accessible
website of the Department of Education.
``(B) Contents.--Each report shall include--
``(i) data on the population served under
this section, including the total number of
children and families served;
``(ii) information on sources of campus and
community resources and the amount of non-
Federal funding used to help low-income
students access child care services on campus;
``(iii) documentation that the program
meets applicable licensing, certification,
approval, or registration requirements; and
``(iv) a description of how funding was
used to pursue the goals of this section
determined by the institution under subsection
(c).
``(2) Continuing eligibility.--The Secretary shall make
continuation awards under this section to an institution of
higher education only if the Secretary determines, on the basis
of the reports submitted under paragraph (1) and the
application from the institution, that the institution is--
``(A) using funds only for authorized purposes;
``(B) providing low-income students at the
institution with priority access to affordable, quality
child care services as provided under this section; and
``(C) documenting a continued need for Federal
funding under this section, while demonstrating how
non-Federal sources will be leveraged to support a
continuation award.''; and
(5) in subsection (g), by striking ``such sums as may be
necessary for fiscal year 2009 and each of the five succeeding
fiscal years'' and inserting ``$15,134,000 for each of fiscal
years 2019 through 2024''.
SEC. 406. REPEALS.
(a) Academic Competitiveness Grants.--Section 401A (20 U.S.C.
1070a-1) is repealed.
(b) Federal Supplemental Educational Opportunity Grants.--
(1) Repeal.--Subpart 3 of part A of title IV (20 U.S.C.
1070b et seq.) is repealed.
(2) Effective date.--The repeal made by paragraph (1) shall
take effect on June 30, 2018.
(c) Leveraging Educational Assistance Partnership Program.--Subpart
4 of part A of title IV (20 U.S.C. 1070c et seq.) is repealed.
(d) Robert C. Byrd Honors Scholarship Program.--Subpart 6 of part A
of title IV (20 U.S.C. 1070d-31 et seq.) is repealed.
SEC. 407. SUNSET OF TEACH GRANTS.
Subpart 9 of part A of title IV (20 U.S.C. 1070g) is amended--
(1) in section 420L(1) (20 U.S.C. 1070g(1), by striking
``section 102'' and inserting ``section 102 (as in effect on
the day before the date of enactment of the PROSPER Act)'';
(2) in section 420N (20 U.S.C. 1070g-2)--
(A) by amending subparagraph (B) of subsection
(b)(1) to read as follows:
``(B) teach--
``(i) in a public or other nonprofit
private elementary school or secondary school,
which, for the purpose of this paragraph and
for that year--
``(I) has been determined by the
Secretary (pursuant to regulations of
the Secretary and after consultation
with the State educational agency of
the State in which the school is
located) to be a school in which the
number of children meeting a measure of
poverty under section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6313(a)(5)), exceeds
30 percent of the total number of
children enrolled in such school; and
``(II) is in the school district of
a local educational agency which is
eligible in such year for assistance
pursuant to part A of title I of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311 et seq.); or
``(ii) in one or more public, or nonprofit
private, elementary schools or secondary
schools or locations operated by an educational
service agency that have been determined by the
Secretary (pursuant to regulations of the
Secretary and after consultation with the State
educational agency of the State in which the
educational service agency operates) to be a
school or location at which the number of
children taught who meet a measure of poverty
under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6313(a)(5)), exceeds 30 percent of the total
number of children taught at such school or
location;''; and
(B) in subsection (c), by inserting ``(as in effect
on the day before the date of the enactment of the
PROSPER Act)'' after ``part D of title IV'';
(3) in section 420M(a) (20 U.S.C. 1070g-1), by adding at
the end the following:
``(3) Termination.--
``(A) Termination of program authority.--No new
grants may be made under this subpart after June 30,
2018.
``(B) Limitation on funds.--No funds are authorized
to be appropriated, and no funds may be obligated or
expended under this Act or any other Act, to make a
grant under this subpart for which the first
disbursement would be made after June 30, 2018.''; and
(4) in section 420O (20 U.S.C. 1070g-3)--
(A) by striking ``2008'' and inserting ``2008, and
ending on June 30, 2018''; and
(B) by adding at the end the following: ``No funds
shall be available to the Secretary to carry out this
subpart after June 30, 2018.''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 421. FEDERAL DIRECT CONSOLIDATION LOANS.
Section 428C (20 U.S.C. 1078-3) is amended--
(1) in subsection (a)(4)(B), by inserting before the
semicolon at the end ``, as in effect on the day before the
date of enactment of the PROSPER Act and pursuant to section
461(a) of such Act''; and
(2) in subsection (b)(1)(F)(ii)--
(A) in the matter preceding subclause (I), by
inserting ``, as in effect on the day before the date
of enactment of the PROSPER Act and pursuant to section
461(a) of such Act'' after ``part E'';
(B) in subclause (I), in the matter preceding item
(aa), by inserting ``, as so in effect,'' after ``part
E'';
(C) in subclause (I)(bb), by inserting ``, as so in
effect'' after ``section 464(c)(1)(A)'';
(D) in subclause (II), by inserting ``, as so in
effect'' after ``section 465(a)''; and
(E) in subclause (III)--
(i) by inserting ``, as so in effect''
after ``section 465''; and
(ii) by inserting ``, as so in effect''
after ``465(a)''.
SEC. 422. LOAN REHABILITATION.
Section 428F(a)(5) (20 U.S.C. 1078-6) is amended by striking ``one
time'' and inserting ``two times''.
SEC. 423. LOAN FORGIVENESS FOR TEACHERS.
Section 428J(b)(1)(A) (20 U.S.C. 1087-10(b)(1)(A)) is amended by
striking ``that qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in such schools or
locations'' and inserting ``described in section 420N(b)(1)(B)''.
SEC. 424. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
Section 428K (20 U.S.C. 1078-11) is amended--
(1) in subsection (b)--
(A) in paragraph (4)(B), by striking ``that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in
such a school'' and inserting ``described in section
420N(b)(1)(B)'';
(B) in paragraph (5)(B)(ii), by striking ``that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in
such a school'' and inserting ``described in section
420N(b)(1)(B)'';
(C) in paragraph (7)(A), by striking ``that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in
such a school'' and inserting ``described in section
420N(b)(1)(B)'';
(D) in paragraph (8), by striking ``that qualifies
under section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in such a school''
and inserting ``described in section 420N(b)(1)(B)'';
and
(E) in paragraph (16), by striking ``that qualify
under section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in such a school''
and inserting ``described in section 420N(b)(1)(B)'';
and
(2) in subsection (g)(6)(B), by striking ``that qualifies
under section 465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such a school'' and inserting
``described in section 420N(b)(1)(B)''.
SEC. 425. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
Section 428L(b)(2)(A) (20 U.S.C. 1087-12(b)(2)(A)) is amended--
(1) in clause (i), by inserting before the semicolon at the
end ``, as in effect on the day before the date of enactment of
the PROSPER Act and pursuant to section 461(a) of such Act'';
and
(2) in clause (ii)(III), by inserting ``, as in effect on
the day before the date of enactment of the PROSPER Act and
pursuant to section 461(a) of such Act'' after ``part E'';
SEC. 426. SUNSET OF COHORT DEFAULT RATE AND OTHER CONFORMING CHANGES.
(a) Requirements for the Secretary.--Section 430(e) (20 U.S.C.
1080(e)) is amended by adding at the end the following:
``(4) Sunset.--The Secretary shall not be subject to the
requirements of this subsection after the transition period
described in section 481B(e)(3).''.
(b) Eligible Institution Defined.--Section 435 (20 U.S.C. 1085) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``section 102''
and inserting ``section 101 and 102''; and
(B) by adding at the end the following:
``(9) Sunset.--No institution shall be subject to paragraph
(2) after the transition period described in section
481B(e)(3).'';
(2) in subsection (m), by adding at the end the following:
``(5) Transition period; sunset.--
``(A) Transition period.--During the transition
period, the cohort default rate for an institution
shall be calculated in the manner described in section
481B(e)(1).
``(B) Sunset.--The Secretary shall not be subject,
and no institution shall be subject, to the
requirements of this subsection after the transition
period.
``(C) Definition.--In this paragraph, the term
`transition period' has the meaning given the term in
section 481B(e)(3).''; and
(3) in subsection (o)(1), by inserting ``, as in effect on
the day before the date of enactment of the PROSPER Act and
pursuant to section 461(a) of such Act'' after ``part E''.
SEC. 427. CLOSED SCHOOL AND OTHER DISCHARGES.
Section 437(c) (20 U.S.C. 1087) is amended--
(1) in paragraph (1), by inserting ``and the borrower meets
the applicable requirements of paragraphs (6) through (8),''
after ``such student's lender,'';
(2) in paragraph (4), by inserting before the period at the
end ``, as in effect on the day before the date of enactment of
the PROSPER Act and pursuant to section 461(a) of such Act'';
and
(3) by adding at the end the following:
``(6) Borrower qualifications for a closed school
discharge.--
``(A) In general.--In order to qualify for the
discharge of a loan under this subsection due to the
closure of the institution in which the borrower was
enrolled, a borrower shall submit to the Secretary a
written request and sworn statement--
``(i) that contains true factual
assertions;
``(ii) that is made by the borrower under
penalty of perjury, and that may or may not be
notarized;
``(iii) under which the borrower (or the
student on whose behalf a parent borrowed)
states--
``(I) that the borrower or the
student--
``(aa) received, on or
after January 1, 1986, the
proceeds of a loan made,
insured, or guaranteed under
this title to attend a program
of study at an institution of
higher education;
``(bb)(AA) did not complete
the program of study because
the institution closed while
the student was enrolled; or
``(BB) the student withdrew
from the institution not more
than 120 days before the
institution closed, or in the
case of exceptional
circumstances described in
subparagraph (B), not more than
the period by which such 120-
day period is extended under
such subparagraph; and
``(cc) attempted but was
unable to complete the program
of study through a teach-out at
another institution or by
transferring academic credits
or hours earned at the closed
institution to another
institution;
``(II) whether the borrower (or the
student) has made a claim with respect
to the institutions's closing with any
third party, such as the holder of a
performance bond or a tuition recovery
program, and, if so, the amount of any
payment received by the borrower (or
the student) or credited to the
borrower's loan obligation; and
``(III) that the borrower (or the
student)--
``(aa) agrees to provide to
the Secretary or the holder of
the loan upon request other
documentation reasonably
available to the borrower that
demonstrates that the borrower
meets the qualifications for
discharge under this
subsection; and
``(bb) agrees to cooperate
with the Secretary in
enforcement actions in
accordance with subparagraph
(C) and to transfer any right
to recovery against a third
party to the Secretary in
accordance with subparagraph
(D).
``(B) Exceptional circumstances.--
``(i) In general.--The Secretary may extend
the 120-day period described in subparagraph
(A)(iii)(I)(bb)(BB) if the Secretary determines
that exceptional circumstances related to an
institution's closing justify an extension.
``(ii) Definition.--For purposes of this
subsection, the term `exceptional
circumstances', when used with respect to an
institution that closed, includes the loss of
accreditation of institution, the institutions'
discontinuation of the majority of its academic
programs, action by the State to revoke the
institution's license to operate or award
academic credentials in the State, or a finding
by a State or Federal Government agency that
the institution violated State or Federal law.
``(C) Cooperation by borrower in enforcement
actions.--
``(i) In general.--In order to obtain a
discharge described in subparagraph (A), a
borrower shall cooperate with the Secretary in
any judicial or administrative proceeding
brought by the Secretary to recover amounts
discharged or to take other enforcement action
with respect to the conduct on which the
discharge was based. At the request of the
Secretary and upon the Secretary's tendering to
the borrower the fees and costs that are
customarily provided in litigation to reimburse
witnesses, the borrower shall--
``(I) provide testimony regarding
any representation made by the borrower
to support a request for discharge;
``(II) produce any documents
reasonably available to the borrower
with respect to those representations;
and
``(III) if required by the
Secretary, provide a sworn statement
regarding those documents and
representations.
``(ii) Denial of request for discharge.--
The Secretary shall deny the request for such a
discharge or revoke the discharge of a borrower
who--
``(I) fails to provide the
testimony, documents, or a sworn
statement required under clause (i); or
``(II) provides testimony,
documents, or a sworn statement that
does not support the material
representations made by the borrower to
obtain the discharge.
``(D) Transfer to the secretary of borrower's right
of recovery against third parties.--
``(i) In general.--Upon receiving a
discharge described in subparagraph (A) of a
loan, the borrower shall be deemed to have
assigned to and relinquished in favor of the
Secretary any right to a loan refund for such
loan (up to the amount discharged) that the
borrower (or student) may have by contract or
applicable law with respect to the loan or the
enrollment agreement for the program for which
the loan was received, against the institution,
its principals, its affiliates and their
successors, its sureties, and any private fund,
including the portion of a public fund that
represents funds received from a private party.
``(ii) Application.--The provisions of this
subsection apply notwithstanding any provision
of State law that would otherwise restrict
transfer of such rights by the borrower (or
student), limit, or prevent a transferee from
exercising such rights, or establish procedures
or a scheme of distribution that would
prejudice the Secretary's ability to recover on
such rights.
``(iii) Rule of construction.--Nothing in
this subsection shall limit or foreclose the
borrower's (or student's) right to pursue legal
and equitable relief regarding disputes arising
from matters unrelated to the discharged loan.
``(E) Discharge procedures.--
``(i) In general.--After confirming the
date of an institution's closure, the Secretary
shall identify any borrower (or student on
whose behalf a parent borrowed) who appears to
have been enrolled at the institution on the
closure date of the institution or to have
withdrawn not more than 120 days prior to the
closure date (or in the case of exceptional
circumstances described in subparagraph (B),
not more than the period by which such 120-day
period is extended under such subparagraph. In
the case of a loan made, insured, or guaranteed
under this part, a guaranty agency shall notify
the Secretary immediately whenever it becomes
aware of reliable information indicating an
institution may have closed.
``(ii) Borrower address.--
``(I) Known.--If the borrower's
current address is known, the Secretary
shall mail the borrower a discharge
application and an explanation of the
qualifications and procedures for
obtaining a discharge. The Secretary or
the guaranty agency shall promptly
suspend any efforts to collect from the
borrower on any affected loan. The
Secretary may continue to receive
borrower payments of the loan for which
the discharge application has been
filed.
``(II) Unknown.--If the borrower's
current address is unknown, the
Secretary shall attempt to locate the
borrower and determine the borrower's
potential eligibility for a discharge
described in subparagraph (A) by
consulting with representatives of the
closed institution, the institution's
licensing agency, the institution's
accrediting agency, and other
appropriate parties. If the Secretary
learns the new address of a borrower,
the Secretary shall mail to the
borrower a discharge application and
explanation, and shall suspend
collection on the loan, as described in
subclause (I).
``(iii) Sworn statement.--If a borrower
fails to submit the written request and sworn
statement described subparagraph (A) not later
than 60 days after date on which the Secretary
mails the discharge application under clause
(ii), the Secretary--
``(I) shall resume collection on
the loan and grant forbearance of
principal and interest for the period
in which collection activity was
suspended; and
``(II) may capitalize any interest
accrued and not paid during such
period.
``(iv) Notification.--
``(I) Qualifications met.--If the
Secretary determines that a borrower
who requests a discharge described in
subparagraph (A) meets the
qualifications for such a discharge,
the Secretary shall--
``(aa) notify the borrower
in writing of that
determination; and
``(bb) not regard a
borrower who has defaulted on a
loan that has been so
discharged as in default on the
loan after such discharge, and
such a borrower shall be
eligible to receive assistance
under this title.
``(II) Qualifications not met.--If
the Secretary determines that a
borrower who requests a discharge
described in subparagraph (A) does not
meet the qualifications for such a
discharge, the Secretary or guaranty
agency shall resume collection on the
loan and notify the borrower in writing
of that determination and the reasons
for the determination.
``(7) Borrower qualifications for a false certification
discharge.--
``(A) Application.--
``(i) In general.--In order to qualify for
false certification discharge under this
subsection, the borrower shall submit to the
Secretary, on a form approved by the Secretary,
an application for discharge that--
``(I) does not need not be
notarized, but shall be made by the
borrower under penalty of perjury; and
``(II) demonstrates to the
satisfaction of the Secretary that the
requirements in subparagraphs (B)
through (G) have been met.
``(ii) Notification.--If the Secretary
determines the application does not meet the
requirements of clause (i), the Secretary shall
notify the applicant and explain why the
application does not meet the requirements.
``(B) High school diploma or equivalent.--In the
case of a borrower requesting a false certification
discharge based on not having had a high school diploma
and not having met the alternative to graduation from
high school eligibility requirements under section
484(d) applicable at the time the loan was originated,
and the institution or a third party to which the
institution referred the borrower falsified the
student's high school diploma, the borrower shall state
in the application that the borrower (or the student on
whose behalf a parent borrowed)--
``(i) reported not having a valid high
school diploma or its equivalent at the time
the loan was certified; and
``(ii) did not satisfy the alternative to
graduation from high school statutory or
regulatory eligibility requirements identified
on the application form and applicable at the
time the institution certified the loan.
``(C) Disqualifying condition.--In the case of a
borrower requesting a false certification discharge
based on a condition that would disqualify the borrower
from employment in the occupation that the program for
which the borrower received the loan was intended, the
borrower shall state in the application that the
borrower (or student on whose behalf the parent
borrowed) did not meet State requirements for
employment (in the student's State of residence) in the
occupation that the program for which the borrower
received the loan was intended because of a physical or
mental condition, age, criminal record, or other reason
accepted by the Secretary.
``(D) Unauthorized loan.--In the case of a borrower
requesting a discharge under this subsection because
the institution signed the borrower's name on the loan
application or promissory note without the borrower's
authorization, the borrower shall--
``(i) state that the borrower did not sign
the document in question or authorize the
institution to do so; and
``(ii) provide 5 different specimens of the
borrower's signature, two of which must be
within one year before or after the date of the
contested signature.
``(E) Unauthorized payment.--In the case of a
borrower requesting a false certification discharge
because the institution, without the borrower's
authorization, endorsed the borrower's loan check or
signed the borrower's authorization for electronic
funds transfer, the borrower shall--
``(i) state that the borrower did not
endorse the loan check or sign the
authorization for electronic funds transfer or
authorize the institution to do so;
``(ii) provide 5 different specimens of the
borrower's signature, two of which must be
within one year before or after the date of the
contested signature; and
``(iii) state that the proceeds of the
contested disbursement were not delivered to
the borrower or applied to charges owed by the
borrower to the institution.
``(F) Identity theft.--
``(i) In general.--In the case of an
individual whose eligibility to borrow was
falsely certified because the individual was a
victim of the crime of identity theft and is
requesting a discharge, the individual shall--
``(I) certify that the individual
did not sign the promissory note, or
that any other means of identification
used to obtain the loan was used
without the authorization of the
individual claiming relief;
``(II) certify that the individual
did not receive or benefit from the
proceeds of the loan with knowledge
that the loan had been made without the
authorization of the individual;
``(III) provide a copy of a local,
State, or Federal court verdict or
judgment that conclusively determines
that the individual who is named as the
borrower of the loan was the victim of
a crime of identity theft; and
``(IV) if the judicial
determination of the crime does not
expressly state that the loan was
obtained as a result of the crime of
identity theft, provide--
``(aa) authentic specimens
of the signature of the
individual, as described in
subparagraph (D)(ii), or of
other means of identification
of the individual, as
applicable, corresponding to
the means of identification
falsely used to obtain the
loan; and
``(bb) statement of facts
that demonstrate, to the
satisfaction of the Secretary,
that eligibility for the loan
in question was falsely
certified as a result of the
crime of identity theft
committed against that
individual.
``(ii) Definitions.--For purposes of this
subparagraph:
``(I) Identity theft.--The term
`identity theft' means the unauthorized
use of the identifying information of
another individual that is punishable
under section 1028, 1028A, 1029, or
1030 of title 18, United States Code,
or substantially comparable State or
local law.
``(II) Identifying information.--
The term `identifying information'
includes--
``(aa) name, Social
Security number, date of birth,
official State or government
issued driver's license or
identification number, alien
registration number, government
passport number, and employer
or taxpayer identification
number;
``(bb) unique biometric
data, such as fingerprints,
voiceprint, retina or iris
image, or unique physical
representation;
``(cc) unique electronic
identification number, address,
or routing code; or
``(dd) telecommunication
identifying information or
access device (as defined in 18
U.S.C. 1029(e)) borrower
qualifications for a false
certification discharge
``(G) Claim to third party.--The borrower shall
state whether the borrower has made a claim with
respect to the institutions's false certification or
unauthorized payment with any third party, such as the
holder of a performance bond or a tuition recovery
program, and, if so, the amount of any payment received
by the borrower or credited to the borrower's loan
obligation.
``(H) Cooperation with the secretary.--The borrower
shall state that the borrower--
``(i) agrees to provide to the Secretary
upon request other documentation reasonably
available to the borrower that demonstrates
that the borrower meets the qualifications for
discharge under this subsection; and
``(ii) agrees to cooperate with the
Secretary in enforcement actions and to
transfer any right to recovery against a third
party to the Secretary.
``(8) Borrower qualifications for an unpaid refund
discharge.--To receive an unpaid refund discharge of a portion
of a loan under this subsection, a borrower shall submit to the
holder or guaranty agency a written application--
``(A) that requests the information required to
calculate the amount of the discharge;
``(B) that the borrower signs for the purpose of
swearing to the accuracy of the information;
``(C) that is made by the borrower under penalty of
perjury, and that may or may not be notarized; and
``(D) under which the borrower states--
``(i) that the borrower--
``(I) received, on or after January
1, 1986, the proceeds of a loan, in
whole or in part, made, insured, or
guaranteed under this title to attend
an institution of higher education;
``(II) did not attend, withdrew, or
was terminated from the institution
within a timeframe that entitled the
borrower to a refund; and
``(III) did not receive the benefit
of a refund to which the borrower was
entitled either from the institution or
from a third party, such as the holder
of a performance bond or a tuition
recovery program;
``(ii) whether the borrower has any other
application for discharge pending for this
loan; and
``(iii) that the borrower--
``(I) agrees to provide to the
Secretary upon request other
documentation reasonably available to
the borrower that demonstrates that the
borrower meets the qualifications for
discharge under this subsection; and
``(II) agrees to cooperate with the
Secretary in enforcement actions and to
transfer any right to recovery against
a third party to the Secretary.''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. PURPOSE; AUTHORIZATION OF APPROPRIATIONS.
Section 441 (20 U.S.C. 1087-51) is amended--
(1) in subsection (a)--
(A) by striking ``part-time'' and inserting
``paid'';
(B) by striking ``, graduate, or professional'';
and
(C) by striking ``community service'' and inserting
``work-based learning'';
(2) in subsection (b), by striking ``part, such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.'' and inserting ``part, $1,722,858,000
for fiscal year 2019 and each of the 5 succeeding fiscal
years.''; and
(3) by amending subsection (c) to read as follows:
``(c) Work-Based Learning.--For purposes of this part, the term
`work-based learning' means paid interactions with industry or
community professionals in real workplace settings that foster in-
depth, first-hand engagement with the tasks required of a given career
field, that are aligned to a student's field of study.''.
SEC. 442. ALLOCATION FORMULA.
Section 442 (20 U.S.C. 1087-52) is amended to read as follows:
``SEC. 442. ALLOCATION OF FUNDS.
``(a) Reservations.--
``(1) Reservation for improved institutions.--
``(A) Amount of reservation for improved
institutions.--For a fiscal year in which the amount
appropriated under section 441(b) exceeds $700,000,000,
the Secretary shall--
``(i) reserve the lesser of--
``(I) an amount equal to 20 percent
of the amount by which the amount
appropriated under section 441(b)
exceeds $700,000,000; or
``(II) $150,000,000; and
``(ii) allocate the amount reserved under
clause (i) to each improved institution in an
amount--
``(I) that bears the same
proportion to the amount reserved under
clause (i) as the total amount of all
Federal Pell Grant funds awarded at the
improved institution for the second
preceding fiscal year bears to the
total amount of Federal Pell Grant
funds awarded at improved institutions
participating under this part for the
second preceding fiscal year; and
``(II) is not--
``(aa) less than $10,000;
or
``(bb) greater than
$1,500,000.
``(B) Improved institution described.--For purposes
of this paragraph, an improved institution is an
institution that, on the date the Secretary makes an
allocation under subparagraph (A)(ii) is, with respect
to--
``(i) the completion rate or graduation
rate of Federal Pell Grant recipients at the
institution, in the top 10 percent of--
``(I) if the institution is an
institution described in any of clauses
(iv) through (ix) of section
132(d)(1)(B), all such institutions
participating under this part for the
preceding fiscal year; or
``(II) if the institution is an
institution described in any of clauses
(i) through (iii) of section
132(d)(1)(B), all such institutions
participating under this part for the
preceding fiscal year; or
``(ii) the improvement of the completion
rate or graduation rate between the preceding
fiscal year and such date, in the top 10
percent of the institutions described in clause
(i).
``(C) Completion rate or graduation rate.--For
purposes of determining the completion rate or
graduation rate under this section, a Federal Pell
Grant recipient shall be counted as a completor or
graduate if, within the normal time for completion of
or graduation from the program, the student has
completed or graduated from the program, or enrolled in
any program of an institution participating in any
program under this title for which the prior program
provides substantial preparation.
``(D) Reallocation of returned amount.--If an
institution returns to the Secretary any portion of the
sums allocated to such institution under this paragraph
for any fiscal year, the Secretary shall reallot such
excess to improved institutions on the same basis as
under subparagraph (A)(ii)(I).
``(2) Reservation for work colleges.--From the amounts
appropriated under section 441(b), the Secretary shall reserve
to carry out section 448 such amounts as may be necessary for
fiscal year 2019 and each of the 5 succeeding fiscal years.
``(b) Allocation Formula for Fiscal Years 2019 Through 2023.--
``(1) In general.--From the amount appropriated under
section 441(b) for a fiscal year and remaining after the
Secretary reserves funds under subsection (a), the Secretary
shall allocate to each institution--
``(A) for fiscal year 2019, an amount equal to the
greater of--
``(i) 90 percent of the amount the
institution received under this subsection and
subsection (a) for fiscal year 2018, as such
subsections were in effect with respect to such
fiscal year (in this subparagraph referred to
as the `2018 amount for the institution'); or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(B) for fiscal year 2020, an amount equal to the
greater of--
``(i) 80 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(C) for fiscal year 2021, an amount equal to the
greater of--
``(i) 60 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(D) for fiscal year 2022, an amount equal to the
greater of--
``(i) 40 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
and
``(E) for fiscal year 2023, an amount equal to the
greater of--
``(i) 20 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d).
``(2) Ratable reduction.--
``(A) In general.--If the amount appropriated under
section 441(b) for a fiscal year and remaining after
the Secretary reserves funds under subsection (a) is
less than the amount required to be allocated to the
institutions under this subsection, then the amount of
the allocation to each institution shall be ratably
reduced.
``(B) Additional appropriations.--If the amounts
allocated to each institution are ratably reduced under
subparagraph (A) for a fiscal year and additional
amounts are appropriated for such fiscal year, the
amount allocated to each institution from the
additional amounts shall be increased on the same basis
as the amounts under subparagraph (A) were reduced
(until each institution receives the amount required to
be allocated under this subsection).
``(c) Allocation Formula for Fiscal Year 2024 and Each Succeeding
Fiscal Year.--From the amount appropriated under section 441(b) for
fiscal year 2024 and each succeeding fiscal year and remaining after
the Secretary reserves funds under subsection (a), the Secretary shall
allocate to each institution the fair share amount for the institution
determined under subsection (d).
``(d) Determination of Fair Share Amount.--
``(1) In general.--The fair share amount for an institution
for a fiscal year shall be equal to the sum of the following:
``(A) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of Federal Pell Grant funds disbursed at the
institution for the preceding fiscal year bears to the
total amount of Federal Pell Grant funds awarded at all
institutions participating under this part for the
preceding fiscal year.
``(B) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of the undergraduate student need at the
institution for the preceding fiscal year bears to the
total amount of undergraduate student need at all
institutions participating under this part for the
preceding fiscal year.
``(2) Definitions.--In this subsection:
``(A) Available appropriated amount.--The term
`available appropriated amount' means--
``(i) the amount appropriated under section
441(b) for a fiscal year, minus
``(ii) the amounts reserved under
subsection (a) for such fiscal year.
``(B) Average cost of attendance.--The term
`average cost of attendance' means, with respect to an
institution, the average of the attendance costs for a
fiscal year for students which shall include--
``(i) tuition and fees, computed on the
basis of information reported by the
institution to the Secretary, which shall
include--
``(I) total revenue received by the
institution from undergraduate tuition
and fees for the second year preceding
the year for which it is applying for
an allocation; and
``(II) the institution's enrollment
for such second preceding year;
``(ii) standard living expenses equal to
150 percent of the difference between the
income protection allowance for a family of
five with one in college and the income
protection allowance for a family of six with
one in college for a single independent
student; and
``(iii) books and supplies, in an amount
not exceeding $800.
``(C) Undergraduate student need.--The term
`undergraduate student need' means, with respect to an
undergraduate student for a fiscal year, the lesser of
the following:
``(i) The total of the amount equal to
(except the amount computed by this clause
shall not be less than zero)--
``(I) the average cost of
attendance for the fiscal year, minus
``(II) the total amount of each
such undergraduate student's expected
family contribution (computed in
accordance with part F of this title)
for the preceding fiscal year.
``(ii) $12,500.
``(e) Return of Surplus Allocated Funds.--
``(1) Amount returned.--If an institution returns more than
10 percent of its allocation under subsection (d), the
institution's allocation for the next fiscal year shall be
reduced by the amount returned.
``(2) Waiver.--The Secretary may waive this paragraph for a
specific institution if the Secretary finds that enforcing this
paragraph would be contrary to the interest of the program.
``(f) Filing Deadlines.--The Secretary shall, from time to time,
set dates before which institutions must file applications for
allocations under this part.''.
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
Section 443 (20 U.S.C. 1087-53) is amended--
(1) in subsection (b)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``part-time'';
(B) in paragraph (2), by striking ``except that--''
and all that follows through ``an institution may use a
portion'' and inserting ``except that an institution
may use a portion'';
(C) in paragraph (3), by inserting
``undergraduate'' after ``only'';
(D) in paragraph (4), by striking ``300'' and
inserting ``500'';
(E) in paragraph (5)--
(i) by striking ``shall not exceed 75
percent'' and inserting ``shall not exceed 75
percent in the first year after the date of the
enactment of PROSPER Act, 65 percent in the
first succeeding fiscal year, 60 percent in the
second succeeding fiscal year, 55 percent in
the third succeeding fiscal year, and 50
percent each succeeding fiscal year'';
(ii) by striking subparagraph (A);
(iii) in subparagraph (B)--
(I) by striking ``75'' and
inserting ``50''; and
(II) by striking the semicolon and
inserting ``; and'';
(iv) by redesignating subparagraph (B) as
subparagraph (A); and
(v) by adding at the end the following:
``(B) the Federal share may equal 100 percent with
respect to funds received under section
442(a)(1)(A);'';
(F) in paragraph (8)--
(i) in subparagraph (A)(i), by striking
``vocational'' and inserting ``career''; and
(ii) in subparagraph (B), by striking
``community service'' and inserting ``work-
based learning'';
(G) in paragraph (10), by striking ``; and'' and
inserting a semicolon;
(H) in paragraph (11), by striking the period at
the end and inserting a semicolon; and
(I) by adding at the end the following:
``(12) provide assurances that the institution will collect
data from students and employers such that the employment made
available from funds under this part will, to the maximum
extent practicable, complement and reinforce the educational
goals or career goals of each student receiving assistance
under this part; and
``(13) provide assurances that if the institution receives
funds under section 442(a)(1)(A), such institution shall--
``(A) use such funds to compensate students
participating in the work-study program; and
``(B) prioritize the awarding of such funds to
students--
``(i) who demonstrate exceptional need; or
``(ii) who are employed in work-based
learning opportunities through the work-study
program.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``program of part-time
employment'' and inserting the following:
``program--
``(A) of employment''; and
(ii) by inserting ``or'' after ``subsection
(b)(3);''; and
(iii) by adding at the end the following:
``(B) of full-time employment of its cooperative
education students in work for a private for-profit
organization under an arrangement between the
institution and such organization that complies with
the requirements of subparagraphs (A) through (D) of
subsection (b)(1) of this section and subsection (b)(4)
of this section;'';
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ``and complement
and reinforce the educational goals or career goals of
each student receiving assistance under this part''
after ``relevant''; and
(D) by redesignating paragraphs (3), (4), and (5)
as paragraphs (2), (3), and (4), respectively; and
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``In any academic year to
which subsection (b)(2)(A) applies, an
institution shall ensure that'' and inserting
``An institution may use the''; and
(ii) by striking ``are used''; and
(B) in paragraph (3), by striking ``may exceed 75
percent'' and inserting ``shall not exceed 50
percent''.
SEC. 444. FLEXIBLE USE OF FUNDS.
Section 445(a) (20 U.S.C. 1087-55(a)) is amended--
(1) in paragraph (2), by striking ``in the same State'' and
inserting ``described under section 442(a)(1)(B)''; and
(2) by adding at the end the following new paragraph:
``(3) In addition to the carry-over sums authorized under paragraph
(1) of this section, an institution may permit a student who completed
the previous award period to continue to earn unearned portions of the
student's work-study award from that previous year if--
``(A) any reduction in the student's need upon which the
award was based is accounted for in the remaining portion; and
``(B) the student is currently employed in a work-based
learning position.''.
SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.
Section 446 (20 U.S.C. 1087-56) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``10 percent or $75,000''
and inserting ``20 percent or $150,000''; and
(ii) by striking ``, including community
service jobs,''; and
(B) in paragraph (2), by striking ``vocational''
and inserting ``career''; and
(2) in subsection (b)--
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively; and
(C) by inserting before paragraph (4) the
following:
``(2) provide satisfactory assurance that the institution
will prioritize placing students with the lowest expected
family contribution and Federal work-study recipients in jobs
located and developed under this section;
``(3) provide a satisfactory assurance that the institution
will locate and develop work-based learning opportunities
through the job location development programs;''; and
(D) in paragraph (7), by striking the period and
inserting ``, including--
``(A) the number of students employed in work-based
learning opportunities through such program;
``(B) the number of students demonstrating
exceptional need and employed in a work-study program
through such program; and
``(C) the number of students demonstrating
exceptional need and employed in work-based learning
opportunities through such program.''.
SEC. 446. COMMUNITY SERVICE.
Section 447 (20 U.S.C. 1087-57) is repealed.
SEC. 447. WORK COLLEGES.
Section 448 (20 U.S.C. 1087-58) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``and part E''; and
(ii) by striking ``appropriated'' and
inserting ``allocated'';
(B) in paragraph (2), by striking ``appropriated
pursuant to'' and inserting ``allocated under'';
(2) in subsection (c), by striking ``authorized by'' and
inserting ``allocated under'';
(3) in subsection (e)(1)--
(A) in subparagraph (C), by striking ``; and'' and
inserting a semicolon; and
(B) by adding at the end the following:
``(E) has administered Federal work-study for at
least 2 years; and''; and
(4) by amending subsection (f) to read as follows:
``(f) Allocation of Reserved Funds.--
``(1) In general.--Subject to paragraph (2), from the
amount reserved under section 442(a)(2) for a fiscal year to
carry out this section, the Secretary shall allocate to each
work college that submits an application under subsection (c)
an amount equal to the amount that bears the same proportion to
the amount appropriated for such fiscal year as the number of
students eligible for employment under a work-study program
under this part who are enrolled at the work college bears to
the total number of students eligible for employment under a
work-study program under this part who are enrolled at all work
colleges.
``(2) Reallotment of unmatched funds.--If a work college is
unable to match funds received under paragraph (1) in
accordance with subsection (d), any unmatched funds shall be
returned to the Secretary and the Secretary shall reallot such
funds on the same basis as funds are allocated under paragraph
(1).''.
PART D--FEDERAL DIRECT STUDENT LOAN PROGRAM
SEC. 451. TERMINATION OF FEDERAL DIRECT LOAN PROGRAM UNDER PART D AND
OTHER CONFORMING AMENDMENTS.
(a) Appropriations.--Section 451 (20 U.S.C. 1087a) is amended--
(1) in subsection (a), by adding at the end the following:
``No sums may be expended after September 30, 2024, with
respect to loans under this part for which the first
disbursement is after such date.''; and
(2) by adding at the end, the following:
``(c) Termination of Authority To Make New Loans.--Notwithstanding
subsection (a) or any other provision of law--
``(1) no new loans may be made under this part after
September 30, 2024; and
``(2) no funds are authorized to be appropriated, or may be
expended, under this Act, or any other Act to make loans under
this part for which the first disbursement is after September
30, 2024,
except as expressly authorized by an Act of Congress enacted after the
date of enactment of the PROSPER Act.
``(d) Student Eligibility Beginning With Award Year 2019.--
``(1) New borrowers.--No loan may be made under this part
to a new borrower for which the first disbursement is after
June 30, 2019.
``(2) Borrowers with outstanding balances.--Subject to
paragraph (3), with respect to a borrower who, as of July 1,
2019, has an outstanding balance of principal or interest owing
on a loan made under this part, such borrower may--
``(A) in the case of such a loan made to the
borrower for enrollment in a program of undergraduate
education, borrow loans made under this part for any
program of undergraduate education through the close of
September 30, 2024;
``(B) in the case of such a loan made to the
borrower for enrollment in a program of graduate or
professional education, borrow loans made under this
part for any program of graduate or professional
education through the close of September 30, 2024; and
``(C) in the case of such a loan made to the
borrower on behalf of a dependent student for the
student's enrollment in a program of undergraduate
education, borrow loans made under this part on behalf
of such student through the close of September 30,
2024.
``(3) Loss of eligibility.--A borrower described in
paragraph (2) who borrows a loan made under part E for which
the first disbursement is made on or after July 1, 2019, shall
lose the borrower's eligibility to borrow loans made under this
part in accordance with paragraph (2).''.
(b) Perkins Loan Conforming Amendment.--Section 453(c)(2)(A) (20
U.S.C. 1087c(c)(2)(A)) is amended by inserting ``, as in effect on the
day before the date of enactment of the PROSPER Act and pursuant to
subsection 461(a),'' after ``part E''.
(c) Applicable Interest Rates and Other Terms and Conditions.--
Section 455 (20 U.S.C. 1087e) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``, and first
disbursed before October 1, 2024,'' after ``under this
part''; and
(B) in paragraph (2), by inserting ``, and first
disbursed before October 1, 2024,'' after ``under this
part'';
(2) in subsection (b)(8)--
(A) in the section heading, by inserting ``and
before october 1, 2024'' after ``2013'';
(B) in subparagraph (A), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,'';
(C) in subparagraph (B), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,'';
(D) in subparagraph (C), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,''; and
(E) in subparagraph (D), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,'';
(3) in subsection (c)(2)(E), by inserting ``, and before
October 1, 2024'' after ``July 1, 2010'';
(4) in subsection (e)(7), in the matter preceding
subparagraph (A), by inserting ``, as in effect on the day
before the date of enactment of the PROSPER Act and pursuant to
subsection 461(a)'' after ``part E'';
(5) in subsection (g)--
(A) by inserting ``, and first disbursed before
October 1, 2024,'' after ``under this part''; and
(B) by adding at the end the following: ``The
authority to make consolidation loans under this
subsection expires at the close of September 30, 2024.
No loan may be made under this subsection for which the
disbursement is on or after October 1, 2024.''; and
(6) in subsection (o)--
(A) in paragraph (1), by inserting ``, and before
October 1, 2024,'' after ``October 1, 2008''; and
(B) in paragraph (2)--
(i) by inserting ``and before October 1,
2024,'' after ``October 1, 2008,''; and
(ii) by inserting ``, and before October 1,
2024'' after ``October 1, 2008''.
SEC. 452. BORROWER DEFENSES.
Section 455(h) (20 U.S.C. 1087e(h)) is amended to read as follows:
``(h) Borrower Defenses.--
``(1) In general.--In any proceeding to collect on a loan
made under this part to a borrower, the Secretary shall abide
by the following:
``(A) In no event may the borrower recover any
amount previously collected or be freed of amounts owed
to the Secretary without submitting an individually-
filed application for approval.
``(B) In no event may the borrower recover amounts
previously collected by the Secretary, in any action
arising from or relating to a loan made under this
part, in an amount in excess of the amount that has
been paid by the borrower on such loan.
``(C) In no event may the borrower recover amounts
previously collected by the Secretary later than 3
years after the misconduct or breach of contract on
behalf of the institution takes place that gives rise
to the borrower to assert a defense to repayment of the
loan.
``(D) In no event may anyone other than an
administrative law judge or its equivalent preside over
hearings of any kind related to applications submitted
under this subsection.
``(E) In no event may the Secretary approve or
disapprove the borrower's application under this
subsection without allowing for the equal consideration
of evidence and arguments presented by a representative
on behalf of the student or students and a
representative on behalf of the institution, if either
such party makes a request.
``(F) In no event may the Secretary withhold from
an institution any materials, facts, or evidence used
when processing an application submitted by the
borrower.
``(G) In no event may the borrower of a loan made,
insured or guaranteed under this title (other than a
loan made under this part or a Federal ONE Loan) submit
an application under this subsection without
consolidating the loans of the borrower into a Federal
ONE Consolidation Loan.
``(2) Borrower application requirements.--
``(A) In general.--An application submitted by a
borrower under this subsection to the Secretary shall--
``(i) certify the borrower's receipt of
loan proceeds, in whole or in part, to attend
the named institution of higher education;
``(ii) provide evidence described in
subparagraph (B) that supports a borrower
defense to repayment of the loan; and
``(iii) indicate whether the borrower has
made a claim with respect to the information
underlying the borrower defense with any third
party and, if so, the amount of any payment
received by the borrower or credited to the
borrower's loan obligation.
``(B) Evidence.--The borrower has a borrower
defense if--
``(i) the borrower, whether as an
individual or as a member of a class, or a
governmental agency, has obtained against the
institution of higher education a nondefault,
favorable contested judgment based on State or
Federal law in a court or administrative
tribunal of competent jurisdiction;
``(ii) the institution of higher education
for which the borrower received the loan made
under this part failed to perform its
obligations under the terms of a contract with
the student; or
``(iii) the institution of higher education
described in clause (ii) or any of its
representatives engaged directly in marketing,
recruitment or admissions activities, or any
other institution of higher education,
organization, or person with whom such
institution has an agreement to provide
educational programs, or to provide marketing,
advertising, recruiting, or admissions
services, made a substantial misrepresentation
within the meaning of section
487(c)(3)(B)(i)(II) that the borrower
reasonably relied on when the borrower decided
to attend, or to continue attending, such
institution.
``(3) Secretarial notification requirements.--
``(A) Receipt of application.--Upon receipt of a
borrower's application, the Secretary--
``(i) if the borrower is not in default on
the loan for which a borrower defense has been
asserted, shall grant a forbearance and notify
the borrower of the option to decline the
forbearance and to continue making payments on
the loan;
``(ii) if the borrower is in default on the
loan for which a borrower defense has been
asserted--
``(I) shall suspend collection
activity on the loan until the
Secretary issues a decision on the
borrower's claim;
``(II) shall notify the borrower of
the suspension of collection activity
and explain that collection activity
will resume if the Secretary determines
that the borrower does not qualify for
a full discharge; and
``(III) shall notify the borrower
of the option to continue making
payments under a rehabilitation
agreement or other repayment agreement
on the defaulted loan; and
``(iii) shall to the extent possible,
notify the institutions against which the
application is filed, which notification shall
include--
``(I) the reasons that the
application has been filed; and
``(II) the amount of relief
requested.
``(B) Approved application.--If a borrower's
application is approved in full or in part, the
Secretary shall--
``(i) notify the borrower and the
institution in writing of that determination
and of the relief provided; and
``(ii) inform the institution of the
opportunity to request a one-time
reconsideration of the claim in the application
if new evidence that was not previously
provided can be identified.
``(C) Application not approved.--If a borrower's
application is not approved in full or in part, the
Secretary--
``(i) shall notify the borrower and the
institution of the reasons for the denial, the
evidence that was relied upon, any portion of
the loan that is due and payable to the
Secretary, whether the Secretary will reimburse
any amounts previously collected, and inform
the borrower that the loan will return to its
status prior to the borrower's submission of
the application; and
``(ii) shall inform the borrower of the
opportunity to request a one-time
reconsideration of the claim in the application
if new evidence that was not previously
provided can be identified.
``(D) Consolidation.--During a proceeding for an
individual borrower, the Secretary may consolidate
individually-filed applications that have common facts
and claims and resolve the borrowers' borrower defense
claims for faster processing.
``(E) New evidence defined.--For purposes of this
paragraph, the term `new evidence' means relevant
evidence that the borrower or the institution did not
previously provide and that was not identified in the
final decision as evidence that was relied upon for the
final decision. If accepted for reconsideration by the
Secretary, the Secretary shall follow the procedure
under this paragraph.
``(4) Calculation of relief.--The Secretary shall determine
the appropriate method for calculating the amount of relief to
be awarded to a borrower as a result of a proceeding described
in this subsection based on the materials, facts, and evidence
presented during the proceeding.
``(5) Further relief.--The Secretary may afford the
borrower such further relief as the Secretary determines is
appropriate under the circumstances, but which shall not exceed
the following:
``(A) Reimbursing the borrower for amounts paid
toward the loan voluntarily or through enforced
collection.
``(B) Restoring eligibility for assistance under
this title after determining that the borrower is not
in default on the loan.
``(C) Updating reports to consumer reporting
agencies to which the Secretary previously made adverse
credit reports with regard to a loan made under this
part.
``(6) Recovery.--
``(A) In general.--The Secretary may initiate an
appropriate proceeding to require the institution of
higher education whose act or omission resulted in the
borrower's successful defense against repayment of a
loan made under this part to pay to the Secretary the
amount of the loan to which the defense applies not
later than 3 years from the end of the last award year
in which the student attended the institution.
``(B) Notice.--The Secretary may initiate a
proceeding to collect at any time if the institution
received notice of the claim before the end of the
later of the periods described in subparagraph (A). For
purposes of this subparagraph, notice includes receipt
of--
``(i) actual notice from the borrower, from
a representative of the borrower, or from the
Department;
``(ii) a class action complaint asserting
relief for a class that may include the
borrower; or
``(iii) written notice, including a civil
investigative demand or other written demand
for information, from a Federal or State agency
that has power to initiate an investigation
into conduct of the institution of higher
education relating to specific programs,
periods, or practices that may have affected
the borrower.''.
SEC. 453. ADMINISTRATIVE EXPENSES.
Section 458(a) (20 U.S.C. 1087h)--
(1) in paragraph (3)--
(A) by striking ``2007'' each place it appears and
inserting ``2019'';
(B) by striking ``2014'' each place it appears and
inserting ``2024''; and
(C) by striking ``part and part B, including the
costs of the direct student loan programs under this
part'' and inserting ``title'';
(2) in paragraph (6)--
(A) in subparagraph (B), by striking ``2010'' and
inserting ``2019''; and
(B) in subparagraph (C), by striking ``training''
and inserting ``education'';
(3) by striking paragraph (7); and
(4) by redesignating paragraph (8) as paragraph (7).
SEC. 454. LOAN CANCELLATION FOR TEACHERS.
Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended by
striking ``that qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in such schools or
locations'' and inserting ``described in section 420N(b)(1)(B)''.
PART E--FEDERAL ONE LOANS
SEC. 461. WIND-DOWN OF FEDERAL PERKINS LOAN PROGRAM.
(a) In General.--Except as otherwise provided in this section and
notwithstanding section 462, the provisions of part E of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in
effect on the day before the date of enactment of this Act, are deemed
to be incorporated in this subsection as though set forth fully in this
subsection, and shall have the same force and effect as on such day.
(b) Close-Out Audits.--
(1) In general.--In the case of an institution of higher
education that desires to have a final audit of its
participation under the program under part E of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in
effect pursuant to subsection (a), at the same time as its
annual financial and compliance audit under section 487(c) of
such Act (20 U.S.C. 1094(c)), such institution shall submit to
the Secretary a request, in writing, for such an arrangement
not later than 60 days after the institution terminates its
participation under such program.
(2) Termination of participation.--For purposes of this
subsection, an institution shall be considered to have
terminated its participation under the program described in
paragraph (1), if the institution--
(A)(i) has made a determination not to service and
collect student loans made available from funds under
part E of title IV of the Higher Education Act of 1965
(20 U.S.C. 1087aa et seq.), as in effect pursuant to
subsection (a); or
(ii) has completed the servicing and collection of
such student loans; and
(B) has completed the asset distribution required
under section 466(b) of the Higher Education Act of
1965 (20 U.S.C. 1087ff(b)), as in effect pursuant to
subsection (a).
(c) Collection of Interest on Certain Student Loans.--In the case
of an institution of higher education that, on or after October 1,
2006, loaned an amount to its student loan fund established under part
E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et
seq.), as in effect pursuant to subsection (a), for the purpose of
making student loans from such fund, and that, before the date of
enactment of this Act, has repaid to itself the amount loaned to such
student loan fund, the institution shall collect any interest earned on
such student loans.
(d) Assignment of Loans to Secretary.--Notwithstanding the
requirements of section 463(a)(5) of the Higher Education Act of 1965
(20 U.S.C. 1087cc(a)(5)), as in effect pursuant to subsection (a), if
an institution of higher education determines not to service and
collect student loans made available from funds under part E of such
Act (20 U.S.C. 1087aa et seq.), as so in effect--
(1) the institution shall assign, during the repayment
period, any notes or evidence of obligations of student loans
made from such funds to the Secretary; and
(2) the Secretary shall deposit any sums collected on such
notes or obligations (less an amount not to exceed 30 percent
of any such sums collected to cover that Secretary's collection
costs) into the Treasury of the United States.
(e) Closed School Discharge.--The amendments made by section 427 to
section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 1087),
relating to closed school discharge, shall apply with respect to any
loans discharged on or after the date of enactment of this Act under
section 464(g) of such Act (20 U.S.C. 10877dd(g)), as in effect
pursuant to subsection (a)).
SEC. 462. FEDERAL ONE LOAN PROGRAM.
Part E of title IV (20 U.S.C. 1087aa et seq.) is amended to read as
follows:
``SEC. 461. PROGRAM AUTHORITY.
``(a) In General.--There are hereby made available, in accordance
with the provisions of this part, such sums as may be necessary to make
loans to all eligible students (and the eligible parents of such
students) in attendance at participating institutions of higher
education selected by the Secretary to enable such students to pursue
their courses of study at such institutions during the period beginning
July 1, 2019. Loans made under this part shall be made by participating
institutions that have agreements with the Secretary to originate
loans.
``(b) Designation.--The program established under this part shall
be referred to as the `Federal ONE Loan Program'.
``(c) ONE Loans.--Except as otherwise specified in this part, loans
made to borrowers under this part shall be known as `Federal ONE
Loans'.
``SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS.
``(a) In General.--The Secretary shall provide, on the basis of
eligibility of students at each participating institution, and parents
of such students, for such loans, funds for student and Parent Loans
under this part directly to an institution of higher education that has
an agreement with the Secretary under section 464(a) to participate in
the Federal ONE Loan Program under this part and that also has an
agreement with the Secretary under section 464(b) to originate loans
under this part.
``(b) Parallel Terms.--Subsections (b), (c), and (d) of section 452
shall apply to the loan program under this part in the same manner that
such subsections apply to the loan program under part D.
``SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND
ORIGINATION.
``(a) General Authority.--The Secretary shall enter into agreements
pursuant to section 464(a) with institutions of higher education to
participate in the Federal ONE Loan Program under this part, and
agreements pursuant to section 464(b) with institutions of higher
education, to originate loans in such program, for academic years
beginning on or after July 1, 2019. Such agreements for the academic
year 2019-2020 shall, to the extent feasible, be entered into not later
than January 1, 2019.
``(b) Selection Criteria and Procedure.--The application and
selection procedure for an institution of higher education desiring to
participate in the loan program under this part shall be the
application and selection procedure described in section 453(b) for an
institution of higher education desiring to participate in the loan
program under part D.
``(c) Eligible Institutions.--The Secretary may not select an
institution of higher education for participation under this part
unless such institution is an eligible institution under section
487(a).
``SEC. 464. AGREEMENTS WITH INSTITUTIONS.
``(a) Participation Agreements.--An agreement with any institution
of higher education for participation in the Federal ONE Loan Program
under this part shall--
``(1) provide for the establishment and maintenance of a
direct student loan program at the institution under which the
institution will--
``(A) identify eligible students who seek student
financial assistance at such institution in accordance
with section 484;
``(B) provide a statement that certifies the
eligibility of any student to receive a loan under this
part that is not in excess of the annual or aggregate
limit applicable to such loan, except that the
institution may, in exceptional circumstances
identified by the Secretary pursuant to section
454(a)(1)(C), refuse to certify a statement that
permits a student to receive a loan under this part, if
the reason for such action is documented and provided
in written form to such student;
``(C) set forth a schedule for disbursement of the
proceeds of the loan in installments, consistent with
the requirements of section 465(a); and
``(D) provide timely and accurate information,
concerning the status of student borrowers (and
students on whose behalf parents borrow under this
part) while such students are in attendance at the
institution and concerning any new information of which
the institution becomes aware for such students (or
their parents) after such borrowers leave the
institution, to the Secretary for the servicing and
collecting of loans made under this part;
``(2) provide assurances that the institution will comply
with requirements established by the Secretary relating to
student loan information with respect to loans made under this
part;
``(3) provide that the institution accepts responsibility
and financial liability stemming from its failure to perform
its functions pursuant to the agreement;
``(4) provide for the implementation of a quality assurance
system, as established by the Secretary and developed in
consultation with institutions of higher education, to ensure
that the institution is complying with program requirements and
meeting program objectives; and
``(5) provide that the institution will not charge any fees
of any kind, however described, to student or parent borrowers
for origination activities or the provision of any information
necessary for a student or parent to receive a loan under this
part, or any benefits associated with such loan.
``(b) Origination.--An agreement with any institution of higher
education for the origination of loans under this part shall--
``(1) supplement the agreement entered into in accordance
with subsection (a);
``(2) include provisions established by the Secretary that
are similar to the participation agreement provisions described
in paragraphs (2), (3), (4), and (5) of subsection (a), as
modified to relate to the origination of loans by the
institution;
``(3) provide that the institution will originate loans to
eligible students and parents in accordance with this part; and
``(4) provide that the note or evidence of obligation on
the loan shall be the property of the Secretary.
``(c) Withdrawal Procedures.--
``(1) In general.--An institution of higher education
participating in the Federal ONE Loan Program under this part
may withdraw from the program by providing written notice to
the Secretary of the intent to withdraw not less than 60 days
before the intended date of withdrawal.
``(2) Date of withdrawal.--Except in cases in which the
Secretary and an institution of higher education agree to an
earlier date, the date of withdrawal from the Federal ONE Loan
Program under this part of an institution of higher education
shall be the later of--
``(A) 60 days after the institution submits the
notice required under paragraph (1); or
``(B) a date designated by the institution.
``SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIMITS, INTEREST RATES,
AND LOAN FEES.
``(a) Requirements for Disbursement of Student Loans.--
``(1) Multiple disbursement required.--
``(A) Required disbursements.--The proceeds of any
loan made under this part that is made for any period
of enrollment shall be disbursed as follows:
``(i) The disbursement of the first
installment of proceeds shall, with respect to
any student other than a student described in
subparagraph (B)(i), be made not more than 30
days prior to the beginning of the period of
enrollment, and not later than 30 days after
the beginning of such period of enrollment.
``(ii) The disbursement of an installment
of proceeds shall be made in substantially
equal monthly or weekly installments over the
period of enrollment for which the loan was
made, except that installments may be unequal
as necessary to permit the institution to
adjust for unequal costs (which may include
upfront costs such as tuition and fees)
incurred or estimated financial assistance
received by the student.
``(B) First-year students.--
``(i) In general.--The first installment of
the proceeds of any loan made under this part
that is made to a student borrower who is
entering the first year of a program of
undergraduate education, and who has not
previously obtained a loan under this part,
shall not (regardless of the amount of such
loan or the duration of the period of
enrollment) be presented by the institution of
higher education to the student for endorsement
until 30 days after the borrower begins a
course of study, but may be delivered to the
eligible institution prior to the end of that
30-day period.
``(ii) Exemption.--An institution of higher
education in which each educational program has
a loan repayment rate (as determined under
section 481B(c)) for the most recent fiscal
year for which data are available that is
greater than 60 percent shall be exempt from
the requirements of clause (i).
``(2) Withdrawing of succeeding disbursements.--
``(A) Withdrawing students.--In the case in which
the Secretary is informed by the borrower or the
institution that the borrower has ceased to be enrolled
before the disbursement of the second or any succeeding
installment, the Secretary shall withhold such
disbursement. Any disbursement which is so withheld
shall be credited to the borrower's loan and treated as
a prepayment on the principal of the loan.
``(B) Students receiving over-awards.--If the sum
of a disbursement for any borrower and the other
financial aid obtained by borrower exceeds the amount
of assistance for which the borrower is eligible under
this title, the institution the borrower, or dependent
student, in the case of a parent borrower, is attending
shall withhold and return to the Secretary the portion
(or all) of such installment that exceeds such eligible
amount, except that overawards permitted pursuant to
section 443(b)(4) shall not be construed to be
overawards for purposes of this subparagraph. Any
portion (or all) of a disbursement installment which is
so returned shall be credited to the borrower's loan
and treated as a prepayment on the principal of the
loan.
``(3) Exclusion of consolidation and foreign study loans.--
The provisions of this subsection shall not apply in the case
of a Federal ONE Consolidation Loan, or a loan made to a
student to cover the cost of attendance in a program of study
abroad approved by the home eligible institution if each of the
educational programs of such home eligible institution has a
loan repayment rate (as calculated under section 481B(c)) for
the most recent fiscal year for which data are available of
greater than 70 percent.
``(4) Beginning of period of enrollment.--For purposes of
this subsection, a period of enrollment begins on the first day
that classes begin for the applicable period of enrollment.
``(b) Amount of Loan.--
``(1) In general.--The determination of the amount of a
loan disbursed by an eligible institution under this section
shall be the lesser of--
``(A) an amount that is equal to the estimated loan
amount, as determined by the institution by
calculating--
``(i) the estimated cost of attendance at
the institution, minus
``(ii)(I) any estimated financial
assistance reasonably available to such
student, including assistance that the student
will receive from a Federal grant, including a
Federal Pell Grant, a State grant, an
institutional grant, or a scholarship or grant
from another source, that is known to the
institution at the time the student's
determination of need is made; and
``(II) in the case of a loan to a
parent, the amount of a loan awarded
under this part to the parent's child;
or
``(B) the maximum Federal loan amount for which
such borrower is eligible in accordance with paragraph
(2).
``(2) Loan limits.--
``(A) Annual limits.--Except as provided under
subparagraph (B), (C), or (D), the amount of loans made
under this part that an eligible student or parent
borrower may borrow for an academic year shall be as
follows:
``(i) Undergraduate students.--With respect
to enrollment in a program of undergraduate
education at an eligible institution--
``(I) in the case of a dependent
student--
``(aa) who has not
successfully completed the
first year of a program of
undergraduate education,
$7,500;
``(bb) who has successfully
completed such first year but
has not successfully completed
the remainder of a program of
undergraduate education,
$8,500; and
``(cc) who has successfully
completed the first and second
years of a program of
undergraduate education but has
not successfully completed the
remainder of such program,
$9,500;
``(II) in the case of an
independent student, or a dependent
student whose parents are unable to
borrow a loan under this part on behalf
of such student--
``(aa) who has not
successfully completed the
first year of a program of
undergraduate education,
$11,500;
``(bb) who has successfully
completed such first year but
has not successfully completed
the remainder of a program of
undergraduate education,
$12,500; and
``(cc) who has successfully
completed the first and second
years of a program of
undergraduate education but has
not successfully completed the
remainder of such program,
$14,500; and
``(III) in the case of a student
who is enrolled in a program of
undergraduate education that is less
than one academic year, the maximum
annual loan amount that such student
may receive may not exceed the amount
that bears the same ratio to the amount
specified in subclause (I) or (II), as
applicable, as the length of such
program measured in semester,
trimester, quarter, or clock hours
bears to one academic year.
``(ii) Graduate or professional students.--
In the case of a graduate or professional
student for enrollment in a program of graduate
or professional education at an eligible
institution, $28,500.
``(iii) Parent borrowers.--In the case of a
parent borrowing a loan under this part on
behalf of a dependent student for the student's
enrollment in a program of undergraduate
education at an eligible institution, $12,500
per each such student.
``(iv) Coursework for undergraduate
enrollment.--With respect to enrollment in
coursework specified in section 484(b)(3)(B)
necessary for enrollment in an undergraduate
degree or certificate program--
``(I) in the case of a dependent
student, $2,625;
``(II) in the case of a parent
borrowing a loan under this part on
behalf of a dependent student for the
student's enrollment in such
coursework, $6,000; and
``(III) in the case an independent
student, or a dependent student whose
parents are unable to borrow a loan
under this part on behalf of such
student, $8,625.
``(v) Coursework for graduate or
professional enrollment or teacher
employment.--With respect to the enrollment of
a student who has obtained a baccalaureate
degree in coursework specified in section
484(b)(3)(B) necessary for enrollment in a
graduate or professional degree or certificate
program, or coursework specified in section
484(b)(4)(B) necessary for a professional
credential or certification from a State
required for employment as a teacher in an
elementary or secondary school, in the case of
a student (without regard to whether the
student is a dependent student or dependent
student), $12,500.
``(B) Aggregate limits.--Except as provided under
subparagraph (C), (D), or (E), the maximum aggregate
amount of loans under this part and parts B and D that
an eligible student or parent borrower may borrow shall
be--
``(i) for enrollment in a program of
undergraduate education at an eligible
institution, including for enrollment in
coursework described in clause (iv) or (v) of
subparagraph (A)--
``(I) in the case of a dependent
student, $39,000;
``(II) in the case of an
independent student, or an dependent
student whose parents are unable to
receive a loan under this part on
behalf of such student, $60,250; and
``(III) in the case of a parent
borrowing a loan under this part on
behalf of a dependent student for the
student's enrollment in such a program,
$56,250 per each such student.; and
``(ii) in the case of a graduate or
professional student for enrollment in a
program of graduate or professional education
at an eligible institution, $150,000.
``(C) Application of limits to borrowers with part
b or d loans.--
``(i) Graduate or professional students.--
In the case of a graduate or professional
student who is not described in subparagraph
(E) and who has received loans made under part
B or D for enrollment in a graduate or
professional program at an eligible
institution, the total amount of which equal or
exceed $28,500 as of the time of disbursement,
the student may continue to borrow the amount
of loans under this part necessary to complete
such program without regard to the aggregate
limit under subparagraph (B)(ii), except that
the--
``(I) amount of such loans shall
not exceed the annual limits under
subparagraph (A)(ii) for any academic
year beginning after June 30, 2019; and
``(II) authority to borrow loans in
accordance with this subclause shall
terminate at the end of the academic
year ending before September 30, 2024.
``(ii) Parent borrowers.--In the case of a
parent borrower who has received loans made
under part B or D on behalf of a dependent
student for the student's enrollment in a
program of undergraduate education at an
eligible institution, the total amount of which
equal or exceed $12,500 for such student as of
the time of disbursement, the parent borrower
may continue to borrow the amount of loans
under this part necessary for such student to
complete such program without regard to the
aggregate limit under subparagraph (B)(i)(III),
except that the--
``(I) amount of such loans shall
not exceed the annual limits under
subparagraph (A)(iii) for any academic
year beginning after June 30, 2019; and
``(II) the authority to borrow
loans in accordance with this subclause
shall terminate at the end of the
academic year ending before September
30, 2024.
``(D) Institutional determined limits.--
``(i) In general.--Notwithstanding any
other provision of this subsection, an eligible
institution (at the discretion of a financial
aid administrator at the institution) may
prorate or limit the amount of a loan any
student enrolled in a program of study at that
institution may borrow under this part for an
academic year--
``(I) if the institution, using the
most recently available data from the
Bureau of Labor Statistics for the
average starting salary in the region
in which the institution is located for
typical occupations pursued by
graduates of such program, can
reasonably demonstrate that student
debt levels are or would be excessive
for such program;
``(II) in a case in which the
student is enrolled on a less than
full-time basis or the student is
enrolled for less than the period of
enrollment to which the annual loan
limit applies under this subsection,
based on the student's enrollment
status;
``(III) based on the credential
level (such as a degree, certificate,
or other recognized educational
credential) that the student would
attain upon completion of such program;
or
``(IV) based on the year of the
program for which the student is
seeking such loan.
``(ii) Application to all students.--Any
proration or limiting of loan amounts under
clause (i) shall be applied in the same manner
to all students enrolled in the institution or
program of study.
``(iii) Increases for individual
students.--Upon the request of a student whose
loan amount for an academic year has been
prorated or limited under clause (i), an
eligible institution (at the discretion of the
financial aid administrator at the institution)
may increase such loan amount to an amount not
exceeding the annual loan amount applicable to
such student under this subparagraph for such
academic year if such student demonstrates
special circumstances or exceptional need.
``(E) Increases for certain graduate or
professional students.--
``(i) Additional annual amounts.--Subject
to clause (iii) of this subparagraph, in
addition to the loan amount for an academic
year described in subparagraph (A)(ii)--
``(I) a graduate or professional
student who is enrolled in a program of
study to become a doctor of allopathic
medicine, doctor of osteopathic
medicine, doctor of dentistry, doctor
of veterinary medicine, doctor of
optometry, doctor of podiatric
medicine, doctor of naturopathic
medicine, or doctor of naturopathy may
borrow an additional--
``(aa) in the case of a
program with a 9-month academic
year, $20,000 for an academic
year; or
``(bb) in the case of a
program with a 12-month
academic year, $26,667 for an
academic year; and
``(II) a graduate or professional
student who is enrolled in a program of
study to become a doctor of pharmacy,
doctor of chiropractic medicine, or a
physician's assistant, or receive a
graduate degree in public health,
doctoral degree in clinical psychology,
or a masters or doctoral degree in
health administration may borrow an
additional--
``(aa) in the case of a
program with a 9-month academic
year, $12,500 for an academic
year; or
``(bb) in the case of a
program with a 12-month
academic year, $16,667 for an
academic year.
``(ii) Aggregate limit.--Subject to clause
(iii) of this subparagraph, the maximum
aggregate amount of loans under this part and
parts B and D that a student described in
clause (i) may borrow shall be $235,500.
``(iii) Limitation.--In the case of a
graduate or professional student described in
clause (i) of this subparagraph who has
received loans made under part B or D for
enrollment in a graduate or professional
program at an eligible institution, the total
amount of which equal or exceed $34,000 as of
the time of disbursement, the student may
continue to borrow the amount of loans under
this part necessary to complete such program
without regard to the aggregate limit under
clause (ii) of this subparagraph, except that
the--
``(I) amount of such loans shall
not exceed the annual limits under
clause (i) of this subparagraph for any
academic year beginning after June 30,
2019; and
``(II) authority to borrow loans in
accordance with this subclause shall
terminate at the end of the academic
year ending before September 30, 2024.
``(c) Interest Rate Provisions for Federal ONE Loans.--
``(1) Undergraduate one loans.--For Federal ONE Loans
issued to undergraduate students, the applicable rate of
interest shall, for loans disbursed during any 12-month period
beginning on July 1 and ending on June 30, be determined on the
preceding June 1 and be equal to the lesser of--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior
to such June 1 plus 2.05 percent; or
``(B) 8.25 percent.
``(2) Graduate and professional one loans.--For Federal ONE
Loans issued to graduate or professional students, the
applicable rate of interest shall, for loans disbursed during
any 12-month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to the
lesser of--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior
to such June 1 plus 3.6 percent; or
``(B) 9.5 percent.
``(3) Parent one loans.--For Federal ONE Parent Loans, the
applicable rate of interest shall, for loans disbursed during
any 12-month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to the
lesser of--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior
to such June 1 plus 4.6 percent; or
``(B) 10.5 percent.
``(4) Consolidation loans.--Any Federal ONE Consolidation
Loan for which the application is received on or after July 1,
2019, shall bear interest at an annual rate on the unpaid
principal balance of the loan that is equal to the weighted
average of the interest rates on the loans consolidated,
rounded to the nearest higher one-eighth of one percent.
``(5) Publication.--The Secretary shall determine the
applicable rates of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of determination.
``(6) Rate.--The applicable rate of interest determined
under this subsection for a loan under this part shall be fixed
for the period of the loan.
``(d) Prohibition on Certain Repayment Incentives.--Notwithstanding
any other provision of this part, the Secretary is prohibited from
authorizing or providing any repayment incentive or subsidy not
otherwise authorized under this part to encourage on-time repayment of
a loan under this part, including any reduction in the interest paid by
a borrower of such a loan, except that the Secretary may provide for an
interest rate reduction of not more than 0.25 percentage points for a
borrower who agrees to have payments on such a loan automatically
debited from a bank account.
``(e) Loan Fee.--The Secretary shall not charge the borrower of a
loan made under this part an origination fee.
``(f) Armed Forces Student Loan Interest Payment Program.--
``(1) Authority.--Using funds received by transfer to the
Secretary under section 2174 of title 10, United States Code,
for the payment of interest on a loan made under this part to a
member of the Armed Forces, the Secretary shall pay the
interest on the loan as due for a period not in excess of 36
consecutive months. The Secretary may not pay interest on such
a loan out of any funds other than funds that have been so
transferred.
``(2) Deferment.--During the period in which the Secretary
is making payments on a loan under paragraph (1), the Secretary
shall grant the borrower administrative deferment, in the form
of a temporary cessation of all payments on the loan other than
the payments of interest on the loan that are made under that
paragraph.
``(g) No Accrual of Interest for Active Duty Service Members.--
``(1) In general .--Notwithstanding any other provision of
this part and in accordance with paragraphs (2) and (4),
interest shall not accrue for an eligible military borrower on
a loan made under this part.
``(2) Consolidation loans.--In the case of any
consolidation loan made under this part, interest shall not
accrue pursuant to this subsection only on such portion of such
loan as was used to repay a loan made under this part or a loan
made under part D for which the first disbursement was made on
or after October 1, 2008, and before July 1, 2019.
``(3) Eligible military borrower.--In this subsection, the
term `eligible military borrower' means an individual who--
``(A)(i) is serving on active duty during a war or
other military operation or national emergency; or
``(ii) is performing qualifying National Guard duty
during a war or other military operation or national
emergency; and
``(B) is serving in an area of hostilities in which
service qualifies for special pay under section 310 of
title 37, United States Code.
``(4) Limitation.--An individual who qualifies as an
eligible military borrower under this subsection may receive
the benefit of this subsection for not more than 60 months.
``SEC. 466. REPAYMENT.
``(a) Repayment Period; Commencement of Repayment.--
``(1) Repayment period.--
``(A) In general.--In the case of a Federal ONE
Loan--
``(i) subject to clause (ii), the repayment
period shall--
``(I) exclude any period of
authorized deferment under section
469A; and
``(II) begin the day after 6 months
after the date the student ceases to
carry at least one-half the normal
full-time academic workload (as
determined by the institution); and
``(ii) interest shall begin to accrue or be
paid by the borrower on the day the loan is
disbursed.
``(B) Consolidation and parent loans.--In the case
of a Federal ONE Consolidation Loan or a Federal ONE
Parent Loan, the repayment period shall--
``(i) exclude any period of authorized
deferment; and
``(ii) begin--
``(I) on the day the loan is
disbursed; or
``(II) if the loan is disbursed in
multiple installments, on the day of
the last such disbursement.
``(C) Active duty exclusion.--There shall be
excluded from the 6-month period that begins on the
date on which a student ceases to carry at least one-
half the normal full-time academic workload as
described in subparagraph (A) any period not to exceed
3 years during which a borrower who is a member of a
reserve component of the Armed Forces named in section
10101 of title 10, United States Code, is called or
ordered to active duty for a period of more than 30
days (as defined in section 101(d)(2) of such title).
Such period of exclusion shall include the period
necessary to resume enrollment at the borrower's next
available regular enrollment period.
``(2) Payment of principal and interest.--
``(A) Commencement of repayment.--Repayment of
principal on loans made under this part shall begin at
the beginning of the repayment period described in
paragraph (1).
``(B) Capitalization of interest.--
``(i) In general.--Interest on loans made
under this part for which payments of principal
are not required during the 6-month period
described in paragraph (1)(A)(i)(II) or for
which payments are deferred under section 469A
shall--
``(I) be paid monthly or quarterly;
or
``(II) be added to the principal
amount of the loan only--
``(aa) when the loan enters
repayment;
``(bb) at the expiration of
a the 6-month period described
in paragraph (1)(A)(i)(II);
``(cc) at the expiration of
a period of deferment, unless
otherwise exempted; or
``(dd) when the borrower
defaults.
``(ii) Maximum aggregate limit.--Interest
capitalized shall not be deemed to exceed the
amount equal to the maximum aggregate limit of
the loan under section 465(b).
``(C) Notice.--Not less than 60 days, and again not
less than 30 days, prior to the anticipated
commencement of the repayment period for a Federal ONE
Loan, the Secretary shall provide notice to the
borrower--
``(i) that interest will accrue before
repayment begins;
``(ii) that interest will be added to the
principal amount of the loan in the cases
described in subparagraph (B)(i)(II); and
``(iii) of the borrower's option to begin
loan repayment prior to such repayment period.
``(b) Repayment Amount.--
``(1) In general.--The total of the payments by a borrower,
except as otherwise provided by an income-based repayment plan
under subsection (d), during any year of any repayment period
with respect to the aggregate amount of all loans made under
this part to the borrower shall not (unless the borrower and
the Secretary otherwise agree), be less than $600 or the
balance of all such loans (together with interest thereon),
whichever amount is less (but in no instance less than the
amount of interest due and payable, notwithstanding any
repayment plan described in subsection (c)).
``(2) Amortization.--
``(A) Interest rate.--The amount of the periodic
payment and the repayment schedule for a loan made
under this part shall be established by assuming an
interest rate equal to the applicable rate of interest
at the time of the first disbursement of the loan.
``(B) Adjustment to repayment amount.--The note or
other written evidence of a loan under this part shall
require that the amount of the periodic payment will be
adjusted annually in order to reflect adjustments in--
``(i) interest rates occurring as a
consequence of variable rate loans under parts
B or D paid in conjunction with Federal ONE
Loans under subsection (d)(1)(B)(i); or
``(ii) principal occurring as a consequence
of interest capitalization under subsection
(a)(2)(B).
``(c) Repayment Plans.--
``(1) Design and selection.--Not more than 6 months prior
to the date on which a borrower's first payment on a loan made
under this part is due, the Secretary shall offer the borrower
two plans for repayment of such loan, including principal and
interest on the loan. The borrower shall be entitled to
accelerate, without penalty, repayment on the borrower's loans
under this part. The borrower may choose--
``(A) a standard repayment plan with a fixed
monthly repayment amount paid over a fixed period of
time, not to exceed 10 years; or
``(B) an income-based repayment plan under
subsection (d).
``(2) Selection by secretary.--If a borrower of a loan made
under this part does not select a repayment plan described in
paragraph (1), the Secretary shall provide the borrower with
the repayment plan described in paragraph (1)(A).
``(3) Changes in selections.--
``(A) In general.--Subject to subparagraph (B), the
borrower of a loan made under this part may change the
borrower's selection of a repayment plan under
paragraph (1), or the Secretary's selection of a plan
for the borrower under paragraph (2), as the case may
be, under such terms and conditions as may be
established by the Secretary, except that the Secretary
may not establish any terms or conditions with respect
to whether a borrower may change the borrower's
repayment plan. Nothing in this subsection shall
prohibit the Secretary from encouraging struggling
borrowers from enrolling in the income-driven repayment
plan described in section 466(d).
``(B) Same repayment plan required.--All loans made
under this part to a borrower shall be repaid under the
same repayment plan under paragraph (1), except that
the borrower may repay a Federal ONE Parent Loan or an
Excepted Federal ONE Consolidation Loan (as defined in
subsection (d)(5)) separately from other loans made
under this part to the borrower.
``(4) Repayment after default.--The Secretary may require
any borrower who has defaulted on a loan made under this part
to--
``(A) pay all reasonable collection costs
associated with such loan; and
``(B) repay the loan pursuant to the income-based
repayment plan under subsection (d).
``(5) Repayment period.--For purposes of calculating the
repayment period under this subsection, such period shall
commence at the time the first payment of principal is due from
the borrower.
``(6) Installments.--Repayment of loans under this part
shall be in installments in accordance with the repayment plan
selected under paragraph (1) and commencing at the beginning of
the repayment period determined under paragraph (5).
``(d) Income-Based Repayment Program.--
``(1) In general.--Notwithstanding any other provision of
this Act, the Secretary shall carry out a program under which--
``(A) a borrower of any loan made under this part
(other than a Federal ONE Parent Loan or an Excepted
Federal ONE Consolidation Loan) may elect to have the
borrower's aggregate monthly payment for all such
loans--
``(i) not to exceed the result obtained by
dividing by 12, 15 percent of the result
obtained by calculating, on at least an annual
basis, the amount by which--
``(I) the adjusted gross income of
the borrower or, if the borrower is
married and files a Federal income tax
return jointly with or separately from
the borrower's spouse, the adjusted
gross income of the borrower and the
borrower's spouse, exceeds
``(II) 150 percent of the poverty
line applicable to the borrower's
family size as determined under section
673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)); and
``(ii) not to be less than $25;
``(B) the Secretary adjusts the calculated monthly
payment under subparagraph (A), if--
``(i) in addition to the loans described in
subparagraph (A), the borrower has an
outstanding loan made under part B or D (other
than an excepted parent loan or an excepted
consolidation loan, as such terms are defined
in section 493C(a)), by determining the
borrower's adjusted monthly payment by
multiplying--
``(I) the calculated monthly
payment, by
``(II) the percentage of the total
outstanding principal amount of the
borrower's loans described in the
matter preceding subclause (I), which
are described in subparagraph (A);
``(ii) the borrower and borrower's spouse
have loans described in subparagraph (A) and
outstanding loans under part B or D (other than
an excepted parent loan or an excepted
consolidation loan, as such terms are defined
in section 493C(a)) and have filed a joint or
separate Federal income tax return, in which
case the Secretary determines--
``(I) each borrower's percentage of
the couple's total outstanding amount
of principal on such loans;
``(II) the adjusted monthly payment
for each borrower by multiplying the
borrower's calculated monthly payment
by the percentage determined under
subclause (I) applicable to the
borrower; and
``(III) if the borrower's loans are
held by multiple holders, the
borrower's adjusted monthly payment for
loans described in subparagraph (A) by
multiplying the adjusted monthly
payment determined under subclause (II)
by the percentage of the total
outstanding principal amount of the
borrower's loans described in the
matter preceding subclause (I), which
are described in subparagraph (A);
``(C) the holder of such a loan shall apply the
borrower's monthly payment under this subsection first
toward interest due on the loan, next toward any fees
due on the loan, and then toward the principal of the
loan;
``(D) any principal due and not paid under
subparagraph (C) shall be deferred;
``(E) any interest due and not paid under
subparagraph (C) shall be capitalized, at the time the
borrower--
``(i) ends the election to make income-
based repayment under this subsection; or
``(ii) begins making payments of not less
than the amount specified in subparagraph
(G)(i);
``(F) the amount of time the borrower makes monthly
payments under subparagraph (A) may exceed 10 years;
``(G) if the borrower no longer wishes to continue
the election under this subsection, then--
``(i) the maximum monthly payment required
to be paid for all loans made to the borrower
under this part (other than a Federal ONE
Parent Loan or an Excepted Federal ONE
Consolidation Loan) shall not exceed the
monthly amount calculated under subsection
(c)(1)(A), based on a 10-year repayment period,
when the borrower first made the election
described in this subsection; and
``(ii) the amount of time the borrower is
permitted to repay such loans may exceed 10
years;
``(H) the Secretary shall cancel any outstanding
balance (other than an amount equal to the interest
accrued during any period of in-school deferment under
subparagraph (A), (B), or (F) of section 469A(b)(1))
due on all loans made under this part (other than a
Federal ONE Parent Loan or an Excepted Federal ONE
Consolidation Loan) to a borrower--
``(i) who, at any time, elected to
participate in income-based repayment under
subparagraph (A);
``(ii) whose final monthly payment for such
loans prior to the loan cancellation under this
subparagraph was made under such income-based
repayment; and
``(iii) who has repaid, pursuant to income-
based repayment under subparagraph (A), a
standard repayment plan under subsection
(c)(1)(A), or a combination--
``(I) an amount of principal and
interest on such loans that is equal to
the total amount of principal and
interest that the borrower would have
repaid under a standard repayment plan
under subsection (c)(1)(A), based on a
10-year repayment period, when the
borrower entered repayment on such
loans; and
``(II) the amount of interest that
accrues during a period of deferment
described in section 469A prior to the
completion of the repayment period
described in subclause (I) on the
portion of such loans remaining to be
repaid in accordance with such
subclause; and
``(I) a borrower who is repaying a loan made under
this part pursuant to income-based repayment under
subparagraph (A) may elect, at any time during the 10-
year period beginning on the date the borrower entered
repayment on the loan, to terminate repayment pursuant
to such income-based repayment and repay such loan
under the standard repayment plan.
``(2) Eligibility determinations.--
``(A) In general.--The Secretary shall establish
procedures for annual verification of a borrower's
annual income and the annual amount due on the total
amount of loans made under this part (other than a
Federal ONE Parent Loan or an Excepted Federal ONE
Consolidation Loan), and such other procedures as are
necessary to implement effectively income-based
repayment under this subsection, including the
procedures established with respect to section 493C.
``(B) Income information.--The Secretary may obtain
such information as is reasonably necessary regarding
the income of a borrower (and the borrower's spouse, if
applicable) of a loan made under this part that is, or
may be, repaid pursuant to income-based repayment under
this subsection, for the purpose of determining the
annual repayment obligation of the borrower. The
Secretary shall establish procedures for determining
the borrower's repayment obligation on that loan for
such year, and such other procedures as are necessary
to implement effectively the income-based repayment
under this subsection.
``(C) Borrower requirements.--A borrower who
chooses to repay a loan made under this part pursuant
to income-based repayment under this subsection, and--
``(i) for whom adjusted gross income is
available and reasonably reflects the
borrower's current income, shall, to the
maximum extent practicable, provide to the
Secretary the Federal tax information of the
borrower; and
``(ii) for whom adjusted gross income is
unavailable or does not reasonably reflect the
borrower's current income, shall provide to the
Secretary other documentation of income
satisfactory to the Secretary, which
documentation the Secretary may use to
determine an appropriate repayment schedule.
``(3) Notification to borrowers.--The Secretary shall
establish procedures under which a borrower of a loan made
under this part who chooses to repay such loan pursuant to
income-based repayment under this subsection is notified of the
terms and conditions of such plan, including notification that
if a borrower considers that special circumstances, such as a
loss of employment by the borrower or the borrower's spouse,
warrant an adjustment in the borrower's loan repayment as
determined using the borrower's Federal tax return information,
or the alternative documentation described in paragraph (2)(C),
the borrower may contact the Secretary, who shall determine
whether such adjustment is appropriate, in accordance with
criteria established by the Secretary.
``(4) Reduced payment periods.--
``(A) In general.--The Secretary shall authorize
borrowers meeting the criteria under subparagraph (B)
to make monthly payments of $5 for a period not in
excess of 3 years, except that--
``(i) for purposes of subparagraph (B)(i),
the Secretary may authorize reduced payments in
6-month increments, beginning on the date the
borrower provides to the Secretary the evidence
described in subclause (I) or (II) of
subparagraph (B)(i); and
``(ii) for purposes of subparagraph
(B)(ii), the Secretary may authorize reduced
payments in 3-month increments, beginning on
the date the borrower provides to the Secretary
the evidence described in subparagraph
(B)(ii)(I).
``(B) Eligibility determinations.--The Secretary
shall authorize borrowers to make reduced payments
under this paragraph in the following circumstances:
``(i) In a case of borrower who is seeking
and unable to find full-time employment, as
demonstrated by providing to the Secretary--
``(I) evidence of the borrower's
eligibility for unemployment benefits
to the Secretary; or
``(II) a written certification or
an equivalent that--
``(aa) the borrower has
registered with a public or
private employment agency that
is available to the borrower
within a 50-mile radius of the
borrower's home address; and
``(bb) in the case of a
borrower that has been granted
a request under this
subparagraph, the borrower has
made at least six diligent
attempts during the preceding
six-month period to secure
full-time employment.
``(ii) The Secretary determines that, due
to high medical expenses, the $25 monthly
payment the borrower would otherwise make would
be an extreme economic hardship to the
borrower, if--
``(I) the borrower documents the
reason why the $25 minimum payment is
an extreme economic hardship; and
``(II) the borrower recertifies the
reason for the $5 minimum payment on a
three-month basis.
``(C) Definition.--For purpose of this section, the
term `full-time employment' means employment that will
provide not less than 30 hours of work a week and is
expected to continue for a period of not less than 3
months.
``(5) Definitions.--In this subsection:
``(A) Adjusted gross income.--The term `adjusted
gross income' has the meaning given the term in section
62 of the Internal Revenue Code of 1986.
``(B) Excepted federal one consolidation loan.--The
term `Excepted Federal ONE Consolidation Loan' means a
Federal ONE Consolidation Loan if the proceeds of such
loan were used to discharge the liability on--
``(i) a Federal ONE Parent Loan;
``(ii) a Federal Direct PLUS Loan, or a
loan under section 428B, that is made, insured,
or guaranteed on behalf of a dependent student;
``(iii) an excepted consolidation loan
(defined in section 493C); or
``(iv) a Federal ONE Consolidation loan
that was used to discharge the liability on a
loan described in clause (i), (ii), or (iii).
``(e) Rules of Construction.--Nothing in this section shall be
construed to authorize, with respect to loans made under this part--
``(1) eligibility for a repayment plan that is not
described in subsection (c)(1) or section 468(c); or
``(2) the Secretary to--
``(A) carry out a repayment plan, which is not
described in subsection (c)(1) or section 468(c); or
``(B) modify a repayment plan that is described in
subsection (c)(1) or section 468(c) in a manner that
results in any net cost to the Federal Government, as
determined jointly by the Secretary, the Secretary of
the Treasury, and the Director of the Office of
Management and Budget.
``SEC. 467. FEDERAL ONE PARENT LOANS.
``(a) Authority To Borrow.--
``(1) Authority and eligibility.--The parent of a dependent
student shall be eligible to borrow funds under this section in
amounts specified in subsection (b), if--
``(A) the parent is borrowing to pay for the
educational costs of a dependent student who meets the
requirements for an eligible student under section
484(a);
``(B) the parent meets the applicable requirements
concerning defaults and overpayments that apply to a
student borrower;
``(C) the parent complies with the requirements for
submission of a statement of educational purpose that
apply to a student borrower under section 484(a)(4)(A)
(other than the completion of a statement of selective
service registration status);
``(D) the parent meets the requirements that apply
to a student under section 437(a);
``(E) the parent--
``(i) does not have an adverse credit
history; or
``(ii) has an adverse credit history, but
has--
``(I) obtained an endorser who does
not have an adverse credit history or
documented to the satisfaction of the
Secretary that extenuating
circumstances exist in accordance with
paragraph (4)(D); and
``(II) completed Federal ONE Parent
Loan counseling offered by the
Secretary; and
``(F) in the case of a parent who has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving fraud in obtaining funds under this
title, such parent has completed the repayment of such
funds to the Secretary, or to the holder in the case of
a loan under this title obtained by fraud.
``(2) Terms, conditions, and benefits.--Except as provided
in subsections (c), (d), and (e), loans made under this section
shall have the same terms, conditions, and benefits as all
other loans made under this part.
``(3) Parent borrowers.--
``(A) Definition.--For purposes of this section,
the term `parent' includes a student's biological or
adoptive mother or father or the student's stepparent,
if the biological parent or adoptive mother or father
has remarried at the time of filing the common
financial reporting form under section 483(a), and that
spouse's income and assets would have been taken into
account when calculating the student's expected family
contribution.
``(B) Clarification.--Whenever necessary to carry
out the provisions of this section, the terms `student'
and `borrower' as used in this part shall include a
parent borrower under this section.
``(4) Adverse credit history definitions and adjustments.--
``(A) Definitions.--For purposes of this section:
``(i) In general.--The term `adverse credit
history', when used with respect to a borrower,
means that the borrower--
``(I) has one or more debts with a
total combined outstanding balance
equal to or greater than $2,085, as may
be adjusted by the Secretary in
accordance with subparagraph (B),
that--
``(aa) are 90 or more days
delinquent as of the date of
the credit report; or
``(bb) have been placed in
collection or charged off
during the two years preceding
the date of the credit report;
or
``(II) has been the subject of a
default determination, bankruptcy
discharge, foreclosure, repossession,
tax lien, wage garnishment, or write-
off of a debt under this title during
the 5 years preceding the date of the
credit report.
``(ii) Charged off.--The term `charged off'
means a debt that a creditor has written off as
a loss, but that is still subject to collection
action.
``(iii) In collection.--The term `in
collection' means a debt that has been placed
with a collection agency by a creditor or that
is subject to more intensive efforts by a
creditor to recover amounts owed from a
borrower who has not responded satisfactorily
to the demands routinely made as part of the
creditor's billing procedures.
``(B) Adjustments.--
``(i) In general.--In a case of a borrower
with a debt amount described in subparagraph
(A)(i), the Secretary shall increase such debt
amount, or its inflation-adjusted equivalent,
if the Secretary determines that an inflation
adjustment to such debt amount would result in
an increase of $100 or more to such debt
amount.
``(ii) Inflation adjustment.--In making the
inflation adjustment under clause (i), the
Secretary shall--
``(I) use the annual average
percent change of the All Items
Consumer Price Index for All Urban
Consumers, before seasonal adjustment,
as the measurement of inflation; and
``(II) if the adjustment calculated
under subclause (I) is equal to or
greater than $100--
``(aa) add the adjustment
to the debt amount, or its
inflation-adjusted equivalent;
and
``(bb) round up to the
nearest $5.
``(iii) Publication.--The Secretary shall
publish a notice in the Federal Register
announcing any increase to the threshold amount
specified in subparagraph (A)(i)(I).
``(C) Treatment of absence of credit history.--For
purposes of this section, the Secretary shall not
consider the absence of a credit history as an adverse
credit history and shall not deny a Federal ONE Parent
loan on that basis.
``(D) Extenuating circumstances.--For purposes of
this section, the Secretary may determine that
extenuating circumstances exist based on documentation
that may include--
``(i) an updated credit report for the
parent; or
``(ii) a statement from the creditor that
the parent has repaid or made satisfactory
arrangements to repay a debt that was
considered in determining that the parent has
an adverse credit history
``(b) Limitation Based on Need.--Any loan under this section may be
counted as part of the expected family contribution in the
determination of need under this title, but no loan may be made to any
parent under this section for any academic year in excess of the lesser
of--
``(1) the student's estimated cost of attendance minus the
student's estimated financial assistance (as calculated under
section 465(b)(1)(A)); or
``(2) the established annual loan limits for such loan
under section 465(b).
``(c) Parent Loan Disbursement.--All loans made under this section
shall be disbursed in accordance with the requirements of section
465(a) and shall be disbursed by--
``(1) an electronic transfer of funds from the lender to
the eligible institution; or
``(2) a check copayable to the eligible institution and the
parent borrower.
``(d) Payment of Principal and Interest.--
``(1) Commencement of repayment.--Repayment of principal on
loans made under this section shall commence not later than 60
days after the date such loan is disbursed by the Secretary,
subject to deferral--
``(A) during any period during which the parent
borrower meets the conditions required for a deferral
under section 469A; and
``(B) upon the request of the parent borrower,
during the 6-month period beginning, if the parent
borrower is also a student, the day after the date such
parent borrower ceases to carry at least one-half such
a workload.
``(2) Maximum repayment period.--The maximum repayment
period for a loan made under this section shall be a 10-year
period beginning on the commencement of such period described
in paragraph (1).
``(3) Capitalization of interest.--Interest on loans made
under this section for which payments of principal are deferred
pursuant to paragraph (1) shall, if agreed upon by the borrower
and the Secretary--
``(A) be paid monthly or quarterly; or
``(B) be added to the principal amount of the loan
not more frequently than quarterly by the Secretary.
``(4) Applicable rates of interest.--Interest on loans made
pursuant to this section shall be at the applicable rate of
interest provided in section 465(c)(3) for loans made under
this section.
``(5) Amortization.--Section 466(b)(2) shall apply to each
loan made under this section.
``(e) Verification of Immigration Status and Social Security
Number.--A parent who wishes to borrow funds under this section shall
be subject to verification of the parent's--
``(1) immigration status in the same manner as immigration
status is verified for students under section 484(g); and
``(2) Social Security number in the same manner as Social
Security numbers are verified for students under section
484(p).
``(f) Designation.--For purposes of this Act, loans described in
this section shall be known as `Federal ONE Parent Loans'.
``SEC. 468. FEDERAL ONE CONSOLIDATION LOANS.
``(a) Terms and Conditions.--In making consolidation loans under
this section, the Secretary shall--
``(1) not make such a loan to an eligible borrower, unless
the Secretary has determined, in accordance with reasonable and
prudent business practices, for each loan being consolidated,
that the loan--
``(A) is a legal, valid, and binding obligation of
the borrower; and
``(B) was made and serviced in compliance with
applicable laws and regulations;
``(2) ensure that each consolidation loan made under this
section will bear interest, and be subject to repayment, in
accordance with subsection (c), except as otherwise provided
under subsections (f) and (g) of section 465;
``(3) ensure that each consolidation loan will be made,
notwithstanding any other provision of this part limiting the
annual or aggregate principal amount for all loans made to a
borrower, in an amount which is equal to the sum of the unpaid
principal and accrued unpaid interest and late charges of all
eligible student loans received by the eligible borrower which
are selected by the borrower for consolidation;
``(4) ensure that the proceeds of each consolidation loan
will be paid by the Secretary to the holder or holders of the
loans so selected to discharge the liability on such loans;
``(5) disclose to a prospective borrower, in simple and
understandable terms, at the time the Secretary provides an
application for a consolidation loan--
``(A) with respect to a loan made, insured, or
guaranteed under this part, part B, or part D, that if
a borrower includes such a loan in the consolidation
loan--
``(i) that the consolidation would result
in a loss of loan benefits; and
``(ii) which specific loan benefits the
borrower would lose, including the loss of
eligibility for loan forgiveness (including
loss of eligibility for interest rate
forgiveness), cancellation, deferment,
forbearance, interest-free periods, or loan
repayment programs that would have been
available for such a loan; and
``(B) with respect to Federal Perkins Loans under
this part (as this part was in effect on the day before
the date of enactment of the PROSPER Act)--
``(i) that if a borrower includes such a
Federal Perkins Loan in the consolidation loan,
the borrower will lose all interest-free
periods that would have been available for the
Federal Perkins Loan, such as--
``(I) the periods during which no
interest accrues on such loan while the
borrower is enrolled in an institution
of higher education at least half-time;
``(II) the grace period under
section 464(c)(1)(A) (as such section
was in effect on the day before the
date of enactment of the PROSPER Act);
and
``(III) the periods during which
the borrower's student loan repayments
are deferred under section 464(c)(2)
(as such section was in effect on the
day before the date of enactment of the
PROSPER Act); and
``(ii) that if a borrower includes such a
Federal Perkins Loan in the consolidation loan,
the borrower will no longer be eligible for
cancellation of part or all of the Federal
Perkins Loan under section 465(a) (as such
section was in effect on the day before the
date of enactment of the PROSPER Act); and
``(iii) the occupations listed in section
465 that qualify for Federal Perkins Loan
cancellation under section 465(a) (as such
section was in effect on the day before the
date of enactment of the PROSPER Act);
``(C) the repayment plans that are available to the
borrower under section (c);
``(D) the options of the borrower to prepay the
consolidation loan, to pay such loan on a shorter
schedule, and to change repayment plans;
``(E) the consequences of default on the
consolidation loan; and
``(F) that by applying for a consolidation loan,
the borrower is not obligated to agree to take the
consolidation loan; and
``(6) not make such a loan to an eligible borrower,
unless--
``(A) the borrower has agreed to notify the
Secretary promptly concerning any change of address;
and
``(B) the loan is evidenced by a note or other
written agreement which--
``(i) is made without security and without
endorsement, except that if--
``(I) the borrower is a minor and
such note or other written agreement
executed by him or her would not, under
applicable law, create a binding
obligation, endorsement may be
required; or
``(II) the borrower desires to
include in the consolidation loan, a
Federal ONE Parent Loan, or a loan
under section 428B, or a Federal Direct
PLUS loan, made on behalf of a
dependent student, endorsement shall be
required;
``(ii) provides for the payment of interest
and the repayment of principal as described in
paragraph (2);
``(iii) provides that during any period for
which the borrower would be eligible for a
deferral under section 469A, which period shall
not be included in determining the repayment
schedule pursuant to subsection (c)--
``(I) periodic installments of
principal need not be paid, but
interest shall accrue and be paid by
the borrower or be capitalized; and
``(II) except as otherwise provided
under subsections (f) and (g) of
section 465, the Secretary shall not
pay interest on any portion of the
consolidation loan, without regard to
whether the portion repays Federal
Stafford Loans for which the student
borrower received an interest subsidy
under section 428 or Federal Direct
Stafford Loans for which the borrower
received an interest subsidy under
section 455;
``(iv) entitles the borrower to accelerate
without penalty repayment of the whole or any
part of the loan; and
``(v) contains a notice of the system of
disclosure concerning such loan to consumer
reporting agencies under section 430A, and
provides that the Secretary on request of the
borrower will provide information on the
repayment status of the note to such consumer
reporting agencies.
``(b) Nondiscrimination in Loan Consolidation.--The Secretary shall
not discriminate against any borrower seeking a loan under this
section--
``(1) based on the number or type of eligible student loans
the borrower seeks to consolidate;
``(2) based on the type or category of institution of
higher education that the borrower attended;
``(3) based on the interest rate to be charged to the
borrower with respect to the consolidation loan; or
``(4) with respect to the types of repayment schedules
offered to such borrower.
``(c) Payment of Principal and Interest.--
``(1) Repayment schedules.--
``(A) Establishment.--
``(i) In general.--Notwithstanding any
other provision of this part, the Secretary
shall--
``(I) establish repayment terms as
will promote the objectives of this
section; and
``(II) provide a borrower with the
option of the standard-repayment plan
or income-based repayment plan under
section 466(d) in lieu of such
repayment terms.
``(ii) Schedule terms.--The repayment terms
established under clause (i)(I) shall require
that if the sum of the consolidation loan and
the amount outstanding on other eligible
student loans to the individual--
``(I) is less than $7,500, then
such consolidation loan shall be repaid
in not more than 10 years;
``(II) is equal to or greater than
$7,500 but less than $10,000, then such
consolidation loan shall be repaid in
not more than 12 years;
``(III) is equal to or greater than
$10,000 but less than $20,000, then
such consolidation loan shall be repaid
in not more than 15 years;
``(IV) is equal to or greater than
$20,000 but less than $40,000, then
such consolidation loan shall be repaid
in not more than 20 years;
``(V) is equal to or greater than
$40,000 but less than $60,000, then
such consolidation loan shall be repaid
in not more than 25 years; or
``(VI) is equal to or greater than
$60,000, then such consolidation loan
shall be repaid in not more than 30
years.
``(B) Limitation.--The amount outstanding on other
eligible student loans which may be counted for the
purpose of subparagraph (A) may not exceed the amount
of the consolidation loan.
``(2) Additional repayment requirements.--Notwithstanding
paragraph (1)--
``(A) except in the case of an income-based
repayment schedule under section 466(d), a repayment
schedule established with respect to a consolidation
loan shall require that the minimum installment payment
be an amount equal to not less than the accrued unpaid
interest; and
``(B) an income-based repayment schedule under
section 466(d) shall not be available to a
consolidation loan borrower who--
``(i) used the proceeds of a Federal ONE
Consolidation loan to discharge the liability--
``(I) on a loan under section 428B
made on behalf of a dependent student;
``(II) a Federal Direct PLUS loan
made on behalf of a dependent student;
``(III) a Federal ONE Parent loan;
or
``(IV) an excepted consolidation
loan (defined in section 493C); or
``(ii) used the proceeds of a subsequent
Federal ONE Consolidation loan to discharge the
liability on a Federal ONE Consolidation loan
described in clause (i).
``(3) Commencement of repayment.--Repayment of a
consolidation loan shall commence within 60 days after all
holders have, pursuant to subsection (a)(4), discharged the
liability of the borrower on the loans selected for
consolidation.
``(4) Interest rate.--A consolidation loan made under this
section shall bear interest at an annual rate described in
section 465(c)(4).
``(d) Insurance Rule.--Any insurance premium paid by the borrower
under subpart I of part A of title VII of the Public Health Service Act
with respect to a loan made under that subpart and consolidated under
this section shall be retained by the student loan insurance account
established under section 710 of the Public Health Service Act.
``(e) Definitions.--For the purpose of this section:
``(1) Eligible borrower.--
``(A) In general.--The term `eligible borrower'
means a borrower who--
``(i) is not subject to a judgment secured
through litigation with respect to a loan under
this title or to an order for wage garnishment
under section 488A; and
``(ii) at the time of application for a
consolidation loan--
``(I) is in repayment status as
determined under section 466(a)(1);
``(II) is in a grace period
preceding repayment; or
``(III) is a defaulted borrower who
has made arrangements to repay the
obligation on the defaulted loans
satisfactory to the holders of the
defaulted loans.
``(B) Termination of status as an eligible
borrower.--An individual's status as an eligible
borrower under this section terminates upon receipt of
a consolidation loan under this section, except that--
``(i) an individual who receives eligible
student loans after the date of receipt of the
consolidation loan may receive a subsequent
consolidation loan;
``(ii) loans received prior to the date of
the consolidation loan may be added during the
180-day period following the making of the
consolidation loan;
``(iii) loans received following the making
of the consolidation loan may be added during
the 180-day period following the making of the
consolidation loan;
``(iv) loans received prior to the date of
the first consolidation loan may be added to a
subsequent consolidation loan; and
``(v) an individual may obtain a subsequent
consolidation loan for the purpose--
``(I) of income-based repayment
under section 466(d) only if the loan
has been submitted for default aversion
or if the loan is already in default;
``(II) of using the no accrual of
interest for active duty service
members benefit offered under section
465(g); or
``(III) of submitting an
application under section 469B(d) for a
borrower defense to repayment of a loan
made, insured, or guaranteed under this
title.
``(2) Eligible student loans.--For the purpose of paragraph
(1), the term `eligible student loans' means loans--
``(A) made, insured, or guaranteed under part B,
and first disbursed before July 1, 2010, including
loans on which the borrower has defaulted (but has made
arrangements to repay the obligation on the defaulted
loans satisfactory to the Secretary or guaranty agency,
whichever insured the loans);
``(B) made under part D of this title, and first
disbursed before July 1, 2019;
``(C) made under this part before September 30,
2017;
``(D) made under this part on or after the date of
enactment of the PROSPER Act;
``(E) made under subpart II of part A of title VII
of the Public Health Service Act; or
``(F) made under part E of title VIII of the Public
Health Service Act.
``(f) Designation.--For purposes of this Act, loans described in
this section shall be known as `Federal ONE Consolidation Loans'.
``SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY.
``(a) In General.--A borrower who has one or more loans in two or
more of the categories described in subsection (b), and who has not yet
entered repayment on one or more of those loans in any of the
categories, may consolidate all of the loans of the borrower that are
described in subsection (b) into a Federal ONE Consolidation Loan
during the period described in subsection (c).
``(b) Categories of Loans That May Be Consolidated.--The categories
of loans that may be consolidated under this section are--
``(1) loans made under this part before October 1, 2017 and
on or after July 1, 2019;
``(2) loans purchased by the Secretary pursuant to section
459A;
``(3) loans made under part B that are held by an eligible
lender, as such term is defined in section 435(d); and
``(4) loans made under part D.
``(c) Time Period in Which Loans May Be Consolidated.--The
Secretary may make a Federal ONE Consolidation Loan under this section
to a borrower whose application for such Federal ONE Consolidation Loan
is received on or after July 1, 2019, and before July 1, 2024.
``(d) Terms of Loans.--A Federal ONE Consolidation Loan made under
this subsection shall have the same terms and conditions as a Federal
ONE Consolidation Loan made under section 468, except that in
determining the applicable rate of interest on the Federal ONE
Consolidation Loan made under this section, section 465(c)(4) shall be
applied without rounding the weighted average of the interest rate on
the loans consolidated to the nearest higher one-eighth of one percent
as in such section.
``SEC. 470. DEFERMENT.
``(a) Effect on Principal and Interest.--A borrower of a loan made
under this part who meets the requirements described in subsection (b)
shall be eligible for a deferment during which installments of
principal need not be paid and, unless otherwise provided in this
subsection, interest shall accrue and be capitalized or paid by the
borrower.
``(b) Eligibility.--A borrower of a loan made under this part shall
be eligible for a deferment--
``(1) during any period during which the borrower--
``(A) is carrying at least one-half the normal
full-time work load for the course of study that the
borrower is pursuing, as determined by the eligible
institution the borrower is attending;
``(B) is pursuing a course of study pursuant to--
``(i) an eligible graduate fellowship
program in accordance with subsection (g); or
``(ii) an eligible rehabilitation training
program for individuals with disabilities in
accordance with subsection (i);
``(C) is serving on active duty during a war or
other military operation or national emergency, and for
the 180-day period following the demobilization date
for such service;
``(D) is performing qualifying National Guard duty
during a war or other military operation or national
emergency, and for the 180-day period following the
demobilization date for such service;
``(E) is a member of the National Guard who is not
eligible for a post-active duty deferment under section
493D and is engaged in active State duty for a period
of more than 30 consecutive days beginning--
``(i) the day after 6 months after the date
the student ceases to carry at least one-half
the normal full-time academic workload (as
determined by the institution); or
``(ii) the day after the borrower ceases
enrollment on at least a half-time basis, for a
loan in repayment;
``(F) is serving in a medical or dental internship
or residency program, the successful completion of
which is required to begin professional practice or
service, or is serving in a medical or dental
internship or residency program leading to a degree or
certificate awarded by an institution of higher
education, a hospital, or a health care facility that
offers postgraduate training; or
``(G) is eligible for interest payments to be made
on a loan made under this part for service in the Armed
Forces under section 2174 of title 10, United States
Code, and pursuant to that eligibility, the interest is
being paid on such loan under section 465(f);
``(2) during a period sufficient to enable the borrower to
resume honoring the agreement to repay the outstanding balance
of principal and interest on the loan after default, if--
``(A) the borrower signs a new agreement to repay
such outstanding balance;
``(B) the deferment period is limited to 120 days;
and
``(C) such deferment is not granted for consecutive
periods;
``(3) during a period of administrative deferment described
in subsection (j); or
``(4) in the case of a borrower of a Federal ONE Parent
Loan or an Excepted Federal ONE Consolidation Loan, during a
period described in subsection (k).
``(c) Length of Deferment.--A deferment granted by the Secretary--
``(1) under subparagraph (F) or (G) of subsection (b)(1)
shall be renewable at 12 month intervals;
``(2) under subparagraph (F) of subsection (b)(1) shall
equal the length of time remaining in the borrower's medical or
dental internship or residency program; and
``(3) under subparagraph (G) of subsection (b)(1) shall not
exceed 3 years.
``(d) Request and Documentation.--The Secretary shall determine the
eligibility of a borrower for a deferment under paragraphs (1), (2), or
(4) of subsection (b), or in the case of a loan for which an endorser
is required, an endorser's eligibility for a deferment under paragraph
(2) or (4) or eligibility to request a deferment under paragraph (1),
based on--
``(1) the receipt of a request for a deferment from the
borrower or the endorser, and documentation of the borrower's
or endorser's eligibility for the deferment or eligibility to
request the deferment;
``(2) receipt of a completed loan application that
documents the borrower's eligibility for a deferment;
``(3) receipt of a student status information documenting
that the borrower is enrolled on at least a half-time basis; or
``(4) the Secretary's confirmation of the borrower's half-
time enrollment status, if the confirmation is requested by the
institution of higher education.
``(e) Notification.--The Secretary shall--
``(1) notify a borrower of a loan made under this part--
``(A) the granting of a deferment under this
subsection on such loan; and
``(B) the option of the borrower to continue making
payments on the outstanding balance of principal and
interest on such loan in accordance with subsection
(f);
``(2) at the time the Secretary grants a deferment to a
borrower of a loan made under this part, and not less
frequently than once every 180 days during the period of such
deferment, provide information to the borrower to assist the
borrower in understanding--
``(A) the effect of granting a deferment on the
total amount to be paid under the income-based
repayment plan under 466(d);
``(B) the fact that interest will accrue on the
loan for the period of deferment, other than for a
deferment granted under subsection (b)(1)(G);
``(C) the amount of unpaid principal and the amount
of interest that has accrued since the last statement
of such amounts provided to the borrower;
``(D) the amount of interest that will be
capitalized, and the date on which capitalization will
occur;
``(E) the effect of the capitalization of interest
on the borrower's loan principal and on the total
amount of interest to be paid on the loan;
``(F) the option of the borrower to pay the
interest that has accrued before the interest is
capitalized; and
``(G) the borrower's option to discontinue the
deferment at any time.
``(f) Form of Deferment.--The form of a deferment granted under
this subsection on a loan made under this part shall be temporary
cessation of all payments on such loan, except that--
``(1) in the case of a deferment granted under subsection
(b)(1)(G), payments of interest on the loan will be made by the
Secretary under section 465(f) during such period of deferment;
and
``(2) a borrower may make payments on the outstanding
balance of principal and interest on such loan during any
period of deferment granted under this subsection.
``(g) Graduate Fellowship Deferment.--
``(1) In general.--A borrower of a loan under this part is
eligible for a deferment under subsection (b)(1)(B)(i) during
any period for which an authorized official of the borrower's
graduate fellowship program certifies that the borrower meets
the requirements of paragraph (2) and is pursuing a course of
study pursuant to an eligible graduate fellowship program.
``(2) Borrower requirements.--A borrower meets the
requirements of this subparagraph if the borrower--
``(A) holds at least a baccalaureate degree
conferred by an institution of higher education;
``(B) has been accepted or recommended by an
institution of higher education for acceptance on a
full-time basis into an eligible graduate fellowship
program; and
``(C) is not serving in a medical internship or
residency program, except for a residency program in
dentistry.
``(h) Treatment of Study Outside the United States.--
``(1) In general.--The Secretary shall treat, in the same
manner as required under section 428(b)(4), any course of study
at a foreign university that is accepted for the completion of
a recognized international fellowship program by the
administrator of such a program as an eligible graduate
fellowship program.
``(2) Requests for deferment.--Requests for deferment of
repayment of loans under this subsection by students engaged in
graduate or postgraduate fellowship-supported study (such as
pursuant to a Fulbright grant) outside the United States shall
be approved until completion of the period of the fellowship,
in the same manner as required under section 428(b)(4).
``(i) Rehabilitation Training Program Deferment.--A borrower of a
loan under this part is eligible for a deferment under subsection
(b)(1)(B)(ii) during any period for which an authorized official of the
borrower's rehabilitation training program certifies that the borrower
is pursuing an eligible rehabilitation training program for individuals
with disabilities.
``(j) Administrative Deferments.--The Secretary may grant a
deferment to a borrower or, in the case of a loan for which an endorser
is required, an endorser, without requiring a request and documentation
from the borrower or the endorser under subsection (d) for--
``(1) a period during which the borrower was delinquent at
the time a deferment is granted, including a period for which
scheduled payments of principal and interest were overdue at
the time such deferment is granted;
``(2) a period during which the borrower or the endorser
was granted a deferment under this subsection but for which the
Secretary determines the borrower or the endorser should not
have qualified;
``(3) a period necessary for the Secretary to determine the
borrower's eligibility for the cancellation of the obligation
of the borrower to repay the loan under section 437;
``(4) a period during which the Secretary has authorized
deferment due to a national military mobilization or other
local or national emergency; or
``(5) a period not to exceed 60 days, during which interest
shall accrue but not be capitalized, if the Secretary
reasonably determines that a suspension of collection activity
is warranted to enable the Secretary to process supporting
documentation relating to a borrower's request--
``(A) for a deferment under this subsection;
``(B) for a change in repayment plan under section
466(c); or
``(C) to consolidate loans under section 468.
``(k) Deferments for Parent or Excepted Consolidation Loans.--
``(1) In general.--A qualified borrower shall be eligible
for deferments under paragraphs (3) through (5).
``(2) Qualified borrower defined.--In this subsection, the
term `qualified borrower' means--
``(A) a borrower of a Federal ONE Parent Loan or an
Excepted Federal ONE Consolidation Loan; or
``(B) in the case of such a loan for which an
endorser is required, the endorser of such loan.
``(3) Economic hardship deferment.--
``(A) In general.--A qualified borrower shall be
eligible for a deferment during periods, not to exceed
3 years in total, during which the qualified borrower
experiences an economic hardship described in
subparagraph (B).
``(B) Economic hardship.--An economic hardship
described in this clause is a period during which the
qualified borrower--
``(i) is receiving payment under a means-
tested benefit program;
``(ii) is employed full-time and the
monthly gross income of the qualified borrower
does not exceed the greater of--
``(I) the minimum wage rate
described in section 6 of the Fair
Labor Standards Act of 1938 (29 U.S.C.
206); or
``(II) an amount equal to 150
percent of the poverty line; or
``(iii) demonstrates that the sum of the
qualified borrower's monthly payments on the
qualified borrower's Federal ONE Parent Loan or
Excepted Federal ONE Consolidation Loan is not
less than 20 percent of the qualified
borrower's monthly gross income.
``(C) Eligibility.--To be eligible to receive a
deferment under this subparagraph, a qualified borrower
shall submit to the Secretary--
``(i) for the first period of deferment
under this subparagraph, evidence showing the
monthly gross income of the qualified borrower;
and
``(ii) for a subsequent period of deferment
that begins less than one year after the end of
a period of deferment granted under this
subparagraph--
``(I) evidence showing the monthly
gross income of the qualified borrower;
or
``(II) the qualified borrower's
most recently filed Federal income tax
return, if such a return was filed in
either of the two tax years preceding
the year in which the qualified
borrower requests the subsequent period
of deferment.
``(4) Unemployment deferment.--
``(A) In general.--A qualified borrower shall be
eligible for a deferment for periods during which the
qualified borrower is seeking, and is unable to find,
full-time employment.
``(B) Eligibility.--
``(i) In general.--To be eligible to
receive an deferment under this subparagraph, a
qualified borrower shall submit to the
Secretary--
``(I) evidence of the qualified
borrower's eligibility for unemployment
benefits; or
``(II) written confirmation, or an
equivalent as approved by the
Secretary, that--
``(aa) the qualified
borrower has registered with a
public or private employment
agency, if one is available to
the borrower within 50 miles of
the qualified borrower's
address; and
``(bb) for requests
submitted after the initial
request, the qualified borrower
has made at least six diligent
attempts during the preceding
six-month period to secure
full-time employment.
``(ii) Acceptance of employment.--A
qualified borrower shall not be eligible for a
deferment under this subparagraph if the
qualified borrower refuses to seek or accept
employment in types of positions or at salary
levels or responsibility levels for which the
qualified borrower feels overqualified based on
the qualified borrower's education or previous
experience.
``(C) Terms of deferment.--The following terms
shall apply to a deferment under this subparagraph:
``(i) Initial period.--The first deferment
granted to a qualified borrower under this
subparagraph may be for a period of
unemployment beginning not more than 6 months
before the date on which the Secretary receives
the qualified borrower's request for deferment
and may be granted for a period of up to 6
months after that date.
``(ii) Renewals.--Deferments under this
subparagraph shall be renewable at 6-month
intervals beginning after the expiration of the
first period of deferment under clause (i). To
be eligible to renew a deferment under this
subparagraph, a qualified borrower shall submit
to the Secretary the information described in
subparagraph (B)(i).
``(iii) Aggregate limit.--The period of all
deferments granted to a borrower under this
subparagraph may not exceed 3 years in
aggregate.
``(5) Health deferment.--
``(A) In general.--A qualified borrower shall be
eligible for a deferment during periods in which the
qualified borrower is unable to make scheduled loan
payments due to high medical expenses, as determined by
the Secretary.
``(B) Eligibility.--To be eligible to receive a
deferment under this subparagraph, a qualified borrower
shall--
``(i) submit to the Secretary documentation
demonstrating that making scheduled loan
payments would be an extreme economic hardship
to the borrower due to high medical expenses,
as determined by the Secretary; and
``(ii) resubmit such documentation to the
Secretary not less frequently than once every 3
months.
``(l) Prohibitions.--
``(1) Prohibition on fees.--No administrative fee or other
fee may be charged to the borrower in connection with the
granting of a deferment under this subsection.
``(2) Prohibition on adverse credit reporting.--No adverse
information relating to a borrower may be reported to a
consumer reporting agency solely because of the granting of a
deferment under this subsection.
``(3) Limitation on authority.--The Secretary shall not,
through regulation or otherwise, authorize additional deferment
options or periods of deferment other than the deferment
options and periods of deferment authorized under this
subsection.
``(m) Treatment of Endorsers.--With respect to any Federal ONE
Parent Loan or Federal ONE Consolidation Loan for which an endorser is
required--
``(1) paragraphs (2) through (4) of subsection (b) shall be
applied--
``(A) by substituting `An endorser' for `A
borrower';
``(B) by substituting `the endorser' for `the
borrower'; and
``(C) by substituting `an endorser' for `a
borrower'; and
``(2) in the case in which the borrower of such a loan is
eligible for a deferment described in subparagraph (C), (D),
(E), (F), or (G) of subsection (b)(1), but is not making
payments on the loan, the endorser of the loan may request a
deferment under such subparagraph for the loan.
``(n) Definitions.--In this section:
``(1) Eligible graduate fellowship program.--The term
`eligible graduate fellowship program', when used with respect
to a course of study pursued by the borrower of a loan under
this part, means a fellowship program that--
``(A) provides sufficient financial support to
graduate fellows to allow for full-time study for at
least six months;
``(B) requires a written statement from each
applicant explaining the applicant's objectives before
the award of that financial support;
``(C) requires a graduate fellow to submit periodic
reports, projects, or evidence of the fellow's
progress; and
``(D) in the case of a course of study at an
institution of higher education outside the United
States described in section 102, accepts the course of
study for completion of the fellowship program.
``(2) Eligible rehabilitation training program for
individuals with disabilities.--The term `eligible
rehabilitation training program for individuals with
disabilities', when used with respect a course of study pursued
by the borrower of a loan under this part, means a program
that--
``(A) is necessary to assist an individual with a
disability in preparing for, securing, retaining, or
regaining employment;
``(B) is licensed, approved, certified, or
otherwise recognized as providing rehabilitation
training to disabled individuals by--
``(i) a State agency with responsibility
for vocational rehabilitation programs, drug
abuse treatment programs, mental health
services programs, or alcohol abuse treatment
programs; or
``(ii) the Secretary of the Department of
Veterans Affairs; and
``(C) provides or will provide the borrower with
rehabilitation services under a written plan that--
``(i) is individualized to meet the
borrower's needs;
``(ii) specifies the date on which the
services to the borrower are expected to end;
and
``(iii) requires a commitment of time and
effort from the borrower that prevents the
borrower from being employed at least 30 hours
per week, either because of the number of hours
that must be devoted to rehabilitation or
because of the nature of the rehabilitation.
``(3) Excepted federal one consolidation loan.--The
`Excepted Federal ONE Consolidation Loan' have the meaning
given the term in section 466(d)(5).
``(4) Family size.--The term `family size' means the number
that is determined by counting--
``(A) the borrower;
``(B) the borrower's spouse;
``(C) the borrower's children, including unborn
children who are expected to be born during the period
covered by the deferment, if the children receive more
than half their support from the borrower; and
``(D) another individual if, at the time the
borrower requests a deferment under this section, the
individual--
``(i) lives with the borrower;
``(ii) receives more than half of the
individual's support (which may include money,
gifts, loans, housing, food, clothes, car,
medical and dental care, and payment of college
costs) from the borrower; and
``(iii) is expected to receive such support
from the borrower during the relevant period of
deferment.
``(5) Full-time.--The term `full-time', when used with
respect to employment, means employment for not less than 30
hours per week that is expected to continue for not less than
three months.
``(6) Means-tested benefit program.--The term `means-tested
benefit program' means--
``(A) a State public assistance program under which
eligibility for the program's benefits, or the amount
of such benefits, are determined on the basis of income
or resources of the individual or family seeking the
benefit; or
``(B) a mandatory spending program of the Federal
Government, other than a program under this title,
under which eligibility for the program's benefits, or
the amount of such benefits, are determined on the
basis of income or resources of the individual or
family seeking the benefit, and may include such
programs as
``(i) the supplemental security income
program under title XVI of the Social Security
Act (42 U.S.C. 1381 et seq.);
``(ii) the supplemental nutrition
assistance program under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.);
``(iii) the free and reduced price school
lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
``(iv) the program of block grants for
States for temporary assistance for needy
families established under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.);
``(v) the special supplemental nutrition
program for women, infants, and children
established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786); and
``(vi) other programs identified by the
Secretary.
``(7) Monthly gross income.--The term `monthly gross
income', when used with respect to a borrower, means--
``(A) the gross amount of income received by the
borrower from employment and other sources for the most
recent month; or
``(B) one-twelfth of the borrower's adjusted gross
income, as recorded on the borrower's most recently
filed Federal income tax return.
``SEC. 471. ADDITIONAL TERMS.
``(a) Applicable Part B Provisions.--
``(1) Disclosures.--Except as otherwise provided in this
part, each institution of higher education with which the
Secretary has an agreement under section 464(a), and each
contractor with which the Secretary has a contract under
section 493E, shall, with respect to loans under this part
comply with each of the requirements under section 433 that
apply to the institutions of higher education and contractors
described in section 455(p) with respect to loans made under
part D.
``(2) Other provisions.--Except as otherwise provided in
this part, the following provisions shall apply with respect to
loans made under this part in the same manner that such
provisions apply with respect to loans made under part D:
``(A) Section 427(a)(2).
``(B) Section 428(d).
``(C) Section 428F
``(D) Section 430A.
``(E) Paragraphs (1), (2), (4), and (6) of section
432(a).
``(F) Section 432(i).
``(G) Section 432(l).
``(H) Section 432(m), except that an institution of
higher education shall have a separate master
promissory note under paragraph (1)(D) of such section
for loans made under this part.
``(I) Subsections (a), (c), and (d) of section 437.
``(3) Application of provisions.--Any provision listed
under paragraph (1) or (2) that applies to--
``(A) Federal Direct PLUS Loans made on behalf of
dependent students shall apply to Federal ONE Parent
Loans;
``(B) Federal Direct PLUS Loans made to students
shall apply to Federal ONE Loans for graduate or
professional students;
``(C) Federal Direct Unsubsidized Stafford loans
shall apply to Federal ONE Loans for any student
borrower;
``(D) Federal Direct Consolidation Loans shall
apply to Federal ONE Consolidation Loans; and
``(E) forbearance shall apply to deferment under
section 469A.
``(b) Eligible Student.--A loan under this part may only be made to
a student who--
``(1) is an eligible student under section 484;
``(2) has agreed to notify promptly the Secretary and the
applicable contractors with which the Secretary has a contract
under section 493E concerning--
``(A) any change of permanent address, telephone
number, or email address;
``(B) when the student ceases to be enrolled on at
least a half-time basis; and
``(C) any other change in status, when such change
in status affects the student's eligibility for the
loan; and
``(3) is carrying at least one-half the normal full-time
academic workload for the course of study the student is
pursuing (as determined by the institution).
``(c) Loan Application and Promissory Note.--The common financial
reporting form required in section 483(a)(1) shall constitute the
application for loans made under this part. The Secretary shall
develop, print, and distribute to participating institutions a standard
promissory note and loan disclosure form.
``(d) Borrower Defenses.--A borrower of a loan under this part may
assert a defense to repayment to such loan under the provisions of
section 455(h) that apply to a borrower of a loan made under part D
asserting, on or after the date of enactment of the PROSPER Act, a
defense to repayment to such loan made under part D.
``(e) Identity Fraud Protection.--The Secretary shall ensure that
monthly Federal ONE Loan statements and other publications of the
Department do not contain more than four digits of the Social Security
number of any individual.
``(f) Authority To Sell Loans.--The Secretary, in consultation with
the Secretary of the Treasury, is authorized to sell loans made under
this part on such terms determined to be in the best interest of the
United States, except that any such sale shall not result in any cost
to the Federal Government.''.
PART F--NEED ANALYSIS
SEC. 471. COST OF ATTENDANCE.
Section 472 (20 U.S.C. 1087ll) is amended--
(1) by striking paragraph (10); and
(2) by redesignating paragraphs (11), (12), and (13) as
paragraphs (10), (11), and (12), respectively.
SEC. 472. SIMPLIFIED NEEDS TEST.
Section 479(b)(1) (20 U.S.C. 1087ss) is amended by striking
``$50,000'' both places it appears and inserting ``$100,000''.
SEC. 473. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
Section 479A (20 U.S.C. 1087tt) is amended--
(1) in subsection (a), by striking ``financial assistance
under section 428H or a Federal Direct Unsubsidized Stafford
Loan'' and inserting ``a Federal Direct Unsubsidized Stafford
Loan or a Federal ONE Loan'';
(2) in subsection (c), by striking ``part B or D'' and
inserting ``part D or E''; and
(3) by adding at the end the following:
``(d) Adjustment Based on Delivery of Instruction.--A student's
eligibility to receive grants, loans, or work assistance under this
title shall be reduced if a financial aid officer determines, in
accordance with the discretionary authority provided under this
section, that the model or method used to deliver instruction to the
student results in a substantially reduced cost of attendance to the
student.''.
SEC. 474. DEFINITIONS OF TOTAL INCOME AND ASSETS.
Section 480 (20 U.S.C. 1087vv) is amended--
(1) in subsection (a)(1), by striking subparagraph (B) and
inserting the following:
``(B) Notwithstanding section 478(a), the Secretary
shall provide for the use of data from the second
preceding tax year to carry out the simplification of
applications (including simplification for a subset of
applications) used for the estimation and determination
of financial aid eligibility. Such simplification shall
include the sharing of data between the Internal
Revenue Service and the Department, pursuant to the
consent of the taxpayer.''; and
(2) in subsection (f)--
(A) in paragraph (2)--
(i) in subparagraph (B), by striking ``or''
at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(D) a qualified tuition program (as defined in
section 529(b)(1)(A) of the Internal Revenue Code of
1986).''; and
(B) in paragraph (5)(A)(i), by striking ``qualified
tuition program (as defined in section 529(b)(1)(A) of
the Internal Revenue Code of 1986) or other''.
PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE
SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.
Section 481 (20 U.S.C. 1088) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A)--
(i) by striking ``For the'' and inserting
the following: ``Except as provided in
paragraph (3), for the''; and
(ii) in clause (i), by striking ``require a
minimum of 30 weeks'' and inserting the
following: ``require--
``(I) a minimum of 30 weeks'';
(iii) in clause (ii), by striking
``require'';
(iv) by redesignating clause (ii) as
subclause (II); and
(v) by redesignating clause (iii) as clause
(ii); and
(B) by adding at the end the following:
``(3)(A) For the purpose of a competency-based education
program the term `academic year' shall be the published
measured period established by the institution of higher
education that is necessary for a student with a normal full-
time workload for the course of study the student is pursuing
(as measured using the value of competencies or sets of
competencies required by such institution and approved by such
institution's accrediting agency or association) to earn--
``(i) one-quarter of a bachelor's degree;
``(ii) one-half of an associate's degree; or
``(iii) with respect to a non-degree or graduate
program, the equivalent of a period described in clause
(i) or (ii).
``(B)(i) A competency-based education program that
is not a term-based program may be treated as a term-
based program for purposes of establishing payment
periods for disbursement of loans and grants under this
title if--
``(I) the institution of higher education
that offers such program charges a flat
subscription fee for access to instruction
during a period determined by the institution;
and
``(II) the institution is able to determine
the competencies a student is expected to
demonstrate for such subscription period.
``(ii) Clause (i) shall apply even in a case in
which instruction or other work with respect to a
competency that is expected to be attributable to a
subscription period begins prior to such subscription
period.
``(iii) In a case in which a competency-based
education program offered by an institution of higher
education is treated as a term-based program under
clause (i), the institution shall review the academic
progress of each student enrolled in such program in
accordance with section 484(c), except that such review
shall occur at the end of each payment period.'';
(2) by amending subsection (b) to read as follows:
``(b) Eligible Program.--(1) For purposes of this title, the term
`eligible program' means--
``(A) a program of at least 300 clock hours of instruction,
8 semester hours, or 12 quarter hours, offered during a minimum
of 10 weeks; or
``(B) a competency-based program that--
``(i) has been evaluated and approved by an
accrediting agency or association that--
``(I) is recognized by the Secretary under
subpart 2 of part H; and
``(II) has evaluation of competency-based
education programs within the scope of its
recognition in accordance with section
496(a)(4)(C); or
``(ii) as of the day before the date of enactment
of the PROSPER Act, met the requirements of a direct
assessment program under section 481(b)(4) (as such
section was in effect on the day before such date of
enactment).
``(2) An eligible program described in paragraph (1) may be offered
in whole or in part through telecommunications.
``(3) For purposes of this title, the term `eligible program' does
not include a program that loses its eligibility under section 481B(a).
``(4)(A) If an eligible institution enters into a written
arrangement with an institution or organization that is not an eligible
institution under which such ineligible institution or organization
provides the educational program (in whole or in part) of students
enrolled in the eligible institution, the educational program provided
by such ineligible institution shall be considered to be an eligible
program if--
``(i) the ineligible institution or organization
has not--
``(I) had its eligibility to participate in
the programs under this title terminated by the
Secretary;
``(II) voluntarily withdrawn from
participation in the programs under this title
under a proceeding initiated by the Secretary,
accrediting agency or association, guarantor,
or the licensing agency for the State in which
the institution is located, including a
termination, show-cause, or suspension;
``(III) had its certification under subpart
3 of part H to participate in the programs
under this title revoked by the Secretary;
``(IV) had its application for
recertification under subpart 3 of part H to
participate in the programs under this title
denied by the Secretary; or
``(V) had its application for certification
under subpart 3 of part H to participate in the
programs under this title denied by the
Secretary;
``(ii) the educational program offered by the
institution that grants the degree or certificate
otherwise satisfies the requirements of paragraph (1);
and
``(iii)(I) the ineligible institution or
organization provides 25 percent or less of the
educational program; or
``(II)(aa) the ineligible institution or
organization provides more than 25 percent of the
educational program; and
``(bb) the eligible institution's accrediting
agency or association has determined that the eligible
institution's arrangement meets the agency's standards
for the contracting out of educational services in
accordance with section 496(c)(5)(B)(iv).
``(B) For purposes of subparagraph (A), the term `eligible
institution' means an institution described in section 487(a).''; and
(3) in subsection (c)(2), by striking ``part B of''.
SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES.
Part G of title IV (20 U.S.C. 1088 et seq. is amended, as amended
by section 481, is further amended by inserting after section 481A (20
U.S.C. 1088a) the following:
``SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES.
``(a) Ineligibility of an Educational Program Based on Low
Repayment Rates.--
``(1) In general.--With respect to fiscal year 2016 and
each succeeding fiscal year, an educational program at an
institution of higher education whose loan repayment rate is
less than 45 percent for each of the 3 most recent fiscal years
for which data are available shall not be considered an
eligible program for the fiscal year in which the determination
is made and for the 2 succeeding fiscal years, unless, not
later than 30 days after receiving notification from the
Secretary of the loss of eligibility under this paragraph, the
institution appeals the loss of such program's eligibility to
the Secretary.
``(2) Appeal.--The Secretary shall issue a decision on any
such appeal within 45 days after its submission. Such decision
may permit a program to be considered an eligible program, if--
``(A) the institution demonstrates to the
satisfaction of the Secretary that--
``(i) the Secretary's calculation of such
program's loan repayment rate is not accurate;
and
``(ii) recalculation would increase such
program's loan repayment rate for any of the 3
fiscal years equal to or greater than 45
percent; or
``(B) the program is not subject to paragraph (1)
by reason of paragraph (3).
``(3) Participation rate index.--
``(A) In general.--An institution that demonstrates
to the Secretary that a program's participation rate
index is equal to or less than 0.11 for any of the 3
most recent fiscal years for which data is available
shall not be subject to paragraph (1).
``(B) Index calculation.--The participation rate
index for a program shall be determined by
multiplying--
``(i) the amount of the difference
between--
``(I) 1.0; and
``(II) the quotient that results by
dividing--
``(aa) the program's loan
repayment rate for a fiscal
year, or the weighted average
loan repayment rate for a
fiscal year, by
``(bb) 100; and
``(ii) the quotient that results by
dividing--
``(I) the percentage of the
program's regular students, enrolled on
at least a half-time basis, who
received a covered loan for a 12-month
period ending during the 6 months
immediately preceding the fiscal year
for which the program's loan repayment
rate or the weighted average loan
repayment rate is determined, by
``(II) 100.
``(C) Data.--An institution shall provide the
Secretary with sufficient data to determine the
program's participation rate index not later than 30
days after receiving an initial notification of the
program's draft loan repayment rate under subsection
(d)(4)(C).
``(D) Notification.--Prior to publication of a
final loan repayment rate under subsection (d)(4)(A)
for a program at an institution that provides the data
described in subparagraph (C), the Secretary shall
notify the institution of the institution's compliance
or noncompliance with subparagraph (A).
``(b) Repayment Improvement and Assessment of Eligibility Based on
Low Loan Repayment Rates.--
``(1) First year.--
``(A) In general.--An institution with a program
whose loan repayment rate is less than 45 percent for
any fiscal year shall establish a repayment improvement
task force to prepare a plan to--
``(i) identify the factors causing such
program's loan repayment rate to fall below
such percent;
``(ii) establish measurable objectives and
the steps to be taken to improve the program's
loan repayment rate; and
``(iii) specify actions that the
institution can take to improve student loan
repayment, including appropriate counseling
regarding loan repayment options.
``(B) Technical assistance.--Each institution
subject to this paragraph shall submit the plan under
subparagraph (A) to the Secretary, who shall review the
plan and offer technical assistance to the institution
to promote improved student loan repayment.
``(2) Second consecutive year.--
``(A) In general.--An institution with a program
whose loan repayment rate is less than 45 percent for
two consecutive fiscal years, shall--
``(i) require the institution's repayment
improvement task force established under
paragraph (1) to review and revise the plan
required under such paragraph; and
``(ii) submit such revised plan to the
Secretary.
``(B) Review by the secretary.--The Secretary--
``(i) shall review each revised plan
submitted in accordance with this paragraph;
and
``(ii) may direct that such plan be amended
to include actions, with measurable objectives,
that the Secretary determines, based on
available data and analyses of student loan
repayment and non-repayment, will promote
student loan repayment.
``(c) Programmatic Loan Repayment Rate Defined.--
``(1) In general.--Except as provided in subsection (d),
for purposes of this section, the term `loan repayment rate'
means, when used with respect to an educational program at an
institution--
``(A) with respect to any fiscal year in which 30
or more current and former students in such program
enter repayment on a covered loan received for
attendance in such program, the percentage of such
current and former students--
``(i) who enter repayment in such fiscal
year on a covered loan received for attendance
in such program; and
``(ii) who are in a positive repayment
status on each such covered loan at the end of
the second fiscal year following the fiscal
year in which such students entered repayment
on such loan; and
``(B) with respect to any fiscal year in which
fewer than 30 of the current and former students in
such program enter repayment on a covered loan received
for attendance in such program, the percentage of such
current and former students--
``(i) who, in any of the three most recent
fiscal years, entered repayment on a covered
loan received for attendance in such program;
and
``(ii) who are in a positive repayment
status on each such covered loan at the end of
the second fiscal year following the fiscal
year in which such students entered repayment
on such loan.
``(2) Guaranty agency requirements.--The Secretary shall
require that each guaranty agency that has insured loans for
current or former students of the institution afford such
institution a reasonable opportunity (as specified by the
Secretary) to review and correct errors in the information
required to be provided to the Secretary by the guaranty agency
for the purposes of calculating a loan repayment rate for
programs at such institution, prior to the calculation of such
rate.
``(3) Positive repayment status.--For purposes of this
section, the term `positive repayment status', when used with
respect to a borrower of a covered loan, means--
``(A) the borrower has entered repayment on such
loan, and such loan is less than 90 days delinquent;
``(B) the loan is paid in full (but not through
consolidation); or
``(C) with respect to a covered loan that is a
Federal ONE Loan, the loan is in a deferment described
in 469A(b)(1), and with respect to a covered loan made,
insured, or guaranteed under part B or made under part
D, the loan is in a deferment or forbearance that is
comparable to a deferment described in 469A(b)(1).
``(4) Covered loan.--For purposes of this section--
``(A) the term `covered loan' means--
``(i) a loan made, insured, or guaranteed
under section 428 or 428H;
``(ii) a Federal Direct Stafford Loan;
``(iii) a Federal Direct Unsubsidized
Stafford Loan;
``(iv) a Federal Direct PLUS Loan issued to
a graduate or professional student;
``(v) a Federal ONE Loan; or
``(vi) the portion of a loan made under
section 428C, a Federal Direct Consolidation
Loan, or a Federal ONE Consolidation Loan that
is used to repay any loan described in clauses
(i) through (v); and
``(B) the term `covered loan' does not include a
loan described in subparagraph (A) that has been
discharged under section 437(a).
``(d) Special Rules.--
``(1) In general.--In the case of a student who has
attended and borrowed at more than one institution of higher
education or for more than one educational program at an
institution, the student (and such student's subsequent
positive repayment status on a covered loan, if applicable))
shall be attributed to each institution of higher education and
educational program for attendance at which the student
received a loan that entered repayment for the fiscal year for
which the loan repayment rate is being calculated.
``(2) Delinquent.--A loan on which a payment is made by an
institution of higher education, such institutions's owner,
agent, contractor, employee, or any other entity or individual
affiliated with such institution, in order to prevent the
borrower from being more than 90 days delinquent on the loan,
shall be considered more than 90 days delinquent for purposes
of this subsection.
``(3) Regulations to prevent evasions.--The Secretary shall
prescribe regulations designed to prevent an institution of
higher education from evading the application of a loan
repayment rate determination under this section to an
educational program at such institution through--
``(A) the use of such measures as branching,
consolidation, change of ownership or control, or any
similar device; or
``(B) creating a new educational program that is
substantially similar to a program determined to be
ineligible under subsection (a).
``(4) Collection and reporting of loan repayment rates.--
``(A) In general.--The Secretary shall publish not
less often than once every fiscal year a report showing
final loan repayment data for each program at each
institution of higher education for which a loan
repayment rate is calculated under this section.
``(B) Publication.--The Secretary shall publish the
report described in subparagraph (A) by September 30 of
each year.
``(C) Drafts.--
``(i) In general.--The Secretary shall
provide institutions with draft loan repayment
rates for each educational program at the
institution at least 6 months prior to the
release of the final rates under subparagraph
(A).
``(ii) Challenge of draft rates.--An
institution may challenge a program's draft
loan repayment rate provided under clause (i)
for any fiscal year by demonstrating to the
satisfaction of the Secretary that such draft
loan repayment rate is not accurate.
``(e) Transition Period.--
``(1) During the transition period.--During the transition
period, the cohort default rate for each institution of higher
education shall be calculated under section 435(m)(1) for each
fiscal year for which such rate has not yet been calculated and
any requirements with respect to such rates shall continue to
apply, except that the loans with respect to which such cohort
default rate shall be calculated shall be the covered loans
defined in subsection (c)(4).
``(2) After the transition period.--After the transition
period, no new cohort default rates shall be calculated for an
institution of higher education and any requirements with
respect to such rates shall cease to apply.
``(3) Definitions.--For purposes of this subsection--
``(A) the term `cohort default rate' has the
meaning given the term in section 435(m); and
``(B) the term `transition period' means the
period--
``(i) beginning on the date of enactment of
the PROSPER Act; and
``(ii) ending on the date on which the
Secretary has published under subsection
(d)(4)(A) the final loan repayment rate for
each program at each institution of higher
education with respect to each of fiscal years
2016, 2017, and 2018.''.
SEC. 483. MASTER CALENDAR.
Section 482 (20 U.S.C. 1089) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``February 1'' and inserting ``January 15'';
(ii) in subparagraph (B), by striking
``March 1'' and inserting ``February 1'';
(iii) in subparagraph (C), by striking
``June 1'' and inserting ``May 1'';
(iv) in subparagraph (D), by striking
``August 15'' and inserting ``July 15'';
(v) by striking subparagraph (E), and
redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively;
(vi) in subparagraph (E), as so
redesignated, by striking ``October 1'' and
inserting ``September 1''; and
(vii) in subparagraph (F), as so
redesignated, by striking ``November 1'' and
inserting ``October 1'';
(B) in paragraph (2)--
(i) in subparagraph (F), by striking ``and
final Pell Grant payment schedule'';
(ii) in subparagraph (J), by striking
``June 1'' and inserting ``May 1'';
(iii) by redesignating subparagraphs (C)
through (J) as subparagraphs (D) through (K),
respectively; and
(iv) by inserting after subparagraph (B)
the following:
``(C) by November 1: final Pell Grant payment
schedule;''; and
(2) in subsection (b)--
(A) by striking ``413D(d), 442(d), or 462(i)'' and
inserting ``442(d)''; and
(B) by striking ``the programs under subpart 3 of
part A, part C, and part E, respectively'' and
inserting ``part C''.
SEC. 484. FAFSA SIMPLIFICATION.
(a) In General.--Section 483 (20 U.S.C. 1090) is amended--
(1) in subsection (a)(3), by adding at the end the
following:
``(I) Format.--Not later than 1 year after the date
of the enactment of the PROSPER Act, the Secretary
shall make the electronic version of the forms under
this paragraph available through a technology tool
optimized for use on mobile devices. Such technology
tool shall, at minimum, enable applicants to--
``(i) save data; and
``(ii) submit the FAFSA of such applicant
to the Secretary through such tool.
``(J) Consumer testing.--In developing and
maintaining the electronic version of the forms under
this paragraph and the technology tool for mobile
devices under subparagraph (I), the Secretary shall
conduct consumer testing with appropriate persons to
ensure the forms and technology tool are designed to be
easily usable and understandable by students and
families. Such consumer testing shall include--
``(i) current and prospective college
students, family members of such students, and
other individuals with expertise in student
financial assistance application processes;
``(ii) dependent students and independent
students who meet the requirements under
subsection (b) or (c) of section 479; and
``(iii) dependent students and independent
students who do not meet the requirements under
subsection (b) or (c) of section 479.''; and
(2) by amending subsection (f) to read as follows:
``(f) Use of Internal Revenue Service Data Retrieval Tool To
Populate FAFSA.--
``(1) Simplification efforts.--The Secretary shall--
``(A) make every effort to allow applicants to
utilize the current data retrieval tool to transfer,
through a rigorous authentication process, data
available from the Internal Revenue Service to reduce
the amount of original data entry by applicants and
strengthen the reliability of data used to calculate
expected family contributions, including through the
use of technology to--
``(i) allow an applicant to automatically
populate the electronic version of the forms
under this paragraph with data available from
the Internal Revenue Service; and
``(ii) direct an applicant to appropriate
questions on such forms based on the
applicant's answers to previous questions; and
``(B) allow single taxpayers, married taxpayers
filing jointly, and married taxpayers filing separately
to utilize the current data retrieval tool to its full
capacity.
``(2) Use of tax return in application process.--The
Secretary shall continue to examine whether data provided by
the Internal Revenue Service can be used to generate an
expected family contribution without additional action on the
part of the student and taxpayer.
``(3) Reports on fafsa simplification efforts.--Not less
than once every other year, the Secretary shall report to the
authorizing committees on--
``(A) the progress of the simplification efforts
under this subsection; and
``(B) the security of the data retrieval tool.''.
(b) Technical Amendment.--Section 483(a)(9)(C) (20 U.S.C.
1090(a)(9)(C)) is amended by inserting ``, including through the tool
described in section 485E(c)'' before the semicolon.
SEC. 485. STUDENT ELIGIBILITY.
Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``a degree,
certificate, or other program (including a program of
study abroad approved for credit by the eligible
institution at which such student is enrolled) leading
to a'' and inserting ``an eligible program (including a
program of study abroad approved for credit by the
eligible institution at which such student is enrolled)
leading to a degree, certificate, or other''; and
(B) in paragraph (3), by inserting `` as in effect
on the day before the date of enactment of the PROSPER
Act and pursuant to section 461(a) of such Act,'' after
``part E,'';
(2) in subsection (b)--
(A) in paragraph (3)(B), by striking ``part B or
D'' and inserting ``part B, D, or E''; and
(B) by adding at the end the following:
``(6) For purposes of competency-based education, in order to be
eligible to receive any loan under this title for an award year, a
student may be enrolled in coursework attributable only to 2 academic
years within the award year.'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by inserting ``least as
frequently as'' before ``the end of
each''; and
(II) by striking ``, and'' at the
end and inserting a semicolon;
(ii) in subparagraph (B)--
(I) by striking ``the student has a
cumulative'' and inserting the
following: ``the student has--
``(i) a cumulative'';
(II) by striking ``the second'' and
inserting ``each'';
(III) by striking the period at the
end and inserting ``; or''; and
(IV) by adding at the end the
following:
``(ii) for the purposes of competency-based
programs, a non-grade equivalent demonstration
of academic standing consistent with the
requirements for graduation, as determined by
the institution, at the end of each such
academic year; and''; and
(iii) by adding at the end the following:
``(C) the student maintains a pace in his or her
educational program that--
``(i) ensures that the student completes the
program within the maximum timeframe; and
``(ii) is measured by a method determined by the
institution which may be based on credit hours, clock
hours, or competencies completed.'';
(B) in paragraph (2), by striking ``grading
period'' and inserting ``evaluation period''; and
(C) by adding at the end the following:
``(4) For purposes of this subsection, the term `maximum timeframe'
means--
``(A) with respect to an undergraduate program measured in
credit hours, a period that is no longer than 150 percent of
the published length of the educational program, as measured in
credit hours;
``(B) with respect to an undergraduate program measured in
competencies, a period that is no longer than 150 percent of
the published length of the educational program, as measured in
competencies;
``(C) with respect to an undergraduate program measured in
clock hours, a period that is no longer than 150 percent of the
published length of the educational program, as measured by the
cumulative number of clock hours the student is required to
complete and expressed in calendar time; and
``(D) with respect to a graduate program, a period defined
by the institution that is based on the length of the
educational program.'';
(4) by amending subsection (d) to read as follows:
``(d) Additional Student Eligibility.--
``(1) Ability to benefit students.--In order for a student
who does not have a certificate of graduation from a school
providing secondary education, or the recognized equivalent of
such certificate, to be eligible for any assistance under
subpart 1 of part A and parts C, D, and E of this title, the
student shall be determined by the institution of higher
education as having the ability to benefit from the education
offered by the institution of higher education upon
satisfactory completion of 6 credit hours or the equivalent
coursework that are applicable toward a degree or certificate
offered by the institution of higher education.
``(2) Homeschool students.--A student who has completed a
secondary school education in a home school setting that is
treated as a home school or private school under State law
shall be eligible for assistance under subpart 1 of part A and
parts C, D, and E of this title.
``(3) Secondary education provided by nonprofit
corporations.--A student who has completed a secondary
education provided by a school operating as a nonprofit
corporation that offers a program of study determined
acceptable for admission at an institution of higher education
shall be eligible for assistance under subpart 1 of part A and
parts C, D, and E of this title.''.
(5) in subsection (f)(1), by striking ``or part E'' both
places it appears and inserting the following: ``, part E (as
in effect on the day before the date of enactment of the
PROSPER Act and pursuant to section 461(a) of such Act), or
part E (as in effect on or after the date of enactment of the
PROSPER Act)'';
(6) by striking subsection (l);
(7) in subsection (n)--
(A) by striking ``(n) Data Base Matching.--To
enforce''; and inserting the following:
``(n) Selective Service Registration.--
``(1) Data base matching.--To enforce''; and
(B) by adding at the end the following:
``(2) Effect of failure to register for selective
service.--A person who is 26 years of age or older shall not be
ineligible for assistance or a benefit provided under this
title by reason of failure to present himself for, and submit
to, registration under section 3 of the Military Selective
Service Act (50 U.S.C. 3802).''; and
(8) by redesignating subsections (m) through (t) as
subsections (l) through (s).
SEC. 486. STATUTE OF LIMITATIONS.
Section 484A (20 U.S.C. 1088) is amended--
(1) in subsection (a)(2)(C)--
(A) by striking ``or section 463(a)'' and inserting
``, section 463(a) (as in effect on the day before the
date of enactment of the PROSPER Act and pursuant to
section 461(a) of such Act), or section 463 (as in
effect on or after the date of enactment of the PROSPER
Act)''; and
(B) by striking ``or E'' and inserting ``, E (as in
effect on the day before the date of enactment of the
PROSPER Act and pursuant to section 461(a) of such
Act), or E (as in effect on or after the date of
enactment of the PROSPER Act)''; and
(2) in subsection (b)--
(A) by striking ``and'' at the end of paragraph
(2);
(B) in paragraph (3)--
(i) by inserting ``(as in effect on the day
before the date of enactment of the PROSPER Act
and pursuant to section 461(a) of such Act)''
after ``part E'';
(ii) by inserting ``(as so in effect)''
after ``section 463(a)''; and
(iii) by adding ``and'' at the end; and
(C) by adding at the end the following:
``(4) in collecting any obligation arising from a loan made
under part E (as in effect on or after the date of enactment of
the PROSPER Act), an institution of higher education that has
an agreement with the Secretary pursuant to section 463(a) (as
so in effect) shall not be subject to a defense raised by any
borrower based on a claim of infancy.''.
SEC. 487. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``If a recipient'' and
inserting the following:
``(A) Consequence of withdrawal.--If a recipient'';
and
(ii) by adding at the end the following:
``(B) Special rule.--For purposes of subparagraph
(A), a student--
``(i) who is enrolled in a program offered
in modules is not considered withdrawn if the
change in the student's attendance constitutes
a change in enrollment status within the
payment period rather than a discontinuance of
attendance within the payment period; and
``(ii) is considered withdrawn if the
student follows the institution's official
withdrawal procedures or leaves without
notifying the institution and has not returned
before the end of the payment period.'';
(B) in paragraph (3)--
(i) in subparagraph (B), by striking
clauses (i) and (ii) and inserting the
following:
``(i) 0 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 0 to 24 percent of the payment period or
period of enrollment;
``(ii) 25 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 25 to 49 percent of the payment period or
period of enrollment;
``(iii) 50 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 50 to 74 percent of the payment period or
period of enrollment; or
``(iv) 75 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 75 to 99 percent of the payment period or
period of enrollment.''.
(ii) in subparagraph (C)(i), by striking
``subparts 1 and 3 of part A'' and inserting
``subpart 1 of part A''; and
(C) in paragraph (4)--
(i) in subparagraph (A), by striking
``Secretary), the institution of higher
education shall contact the borrower'' and
inserting ``Secretary), the institution of
higher education shall have discretion to
determine whether all or a portion of the late
or post-withdrawal disbursement should be made,
under a publicized institutional policy. If the
institution of higher education determines that
a disbursement should be made, the institution
shall contact the borrower''; and
(ii) in subparagraph (B) by striking
``institution or the student, or both, as may
be required under paragraphs (1) and (2) of
subsection (b), to the programs under this
title in the order specified in'' and inserting
``institution, as may be required under
paragraph (1) of subsection (b), to the
programs under this title in accordance with'';
(2) by amending subsection (b) to read as follows:
``(b) Return of Title IV Program Funds.--
``(1) Responsibility of the institution.--The institution
shall return not later than 60 days from the determination of
withdrawal, in accordance with paragraph (3), the amount of
grant and loan assistance awarded under this title that has not
been earned by the student, as calculated under subsection
(a)(3)(C).
``(2) Responsibility of the student.--
``(A) In general.--The student is not responsible
to return assistance that has not been earned, except
that the institution may require the student to pay to
the institution up to 10 percent of the amount owed by
the institution in paragraph (1).
``(B) Rule of construction.--Nothing in this
section shall be construed to prevent an institution
from enforcing the published institutional refund
policies of such institution.
``(3) Order of return of title iv funds.--
``(A) In general.--Excess funds returned by the
institution in accordance with paragraph (1) shall be
credited to awards under subpart 1 of part A for the
payment period or period of enrollment for which a
return of funds is required.
``(B) Remaining excesses.--If excess funds remain
after repaying all outstanding grant amounts, the
remaining excess shall be credited in the following
order:
``(i) To outstanding balances on loans made
under this title to the student or on behalf of
the student for the payment period or period of
enrollment for which a return of funds is
required.
``(ii) To other assistance awarded under
this title for which a return of funds is
required.'';
(3) by amending subsection (c) to read as follows:
``(c) Withdrawal Date.--
``(1) In general.--In this section, the term `day the
student withdrew'--
``(A) for institutions not required to take
attendance, is the date as determined by the
institution that--
``(i) the student began the withdrawal
process prescribed and publicized by the
institution, or a later date if the student
continued attendance despite beginning the
withdrawal process, but did not then complete
the payment period; or
``(ii) in the case of a student who does
not begin the withdrawal process, the date that
is the mid-point of the payment period for
which assistance under this title was disbursed
or another date documented by the institution;
or
``(B) for institutions required to take attendance,
is determined by the institution from such attendance
records.
``(2) Special rule.--Notwithstanding paragraph (1), if the
institution determines that a student did not begin the
withdrawal process, due to illness, accident, grievous personal
loss, or other such circumstances beyond the student's control,
the institution may determine the appropriate withdrawal date
under its own defined policies.
``(3) Attendance.--An institution is required to take
attendance if an institution's accrediting agency or State
licensing agency has a requirement that the institution take
attendance for all students in an academic program throughout
the entire payment period.''; and
(4) by striking subsections (d) and (e).
SEC. 488. INFORMATION DISSEMINATED TO PROSPECTIVE AND ENROLLED
STUDENTS.
(a) Use of Website To Disseminate Information.--Section 485(a)(1)
(20 U.S.C. 1092(a)(1)) is amended in the matter preceding subparagraph
(A) by striking the second and third sentences and inserting the
following: ``The information required by this section shall be produced
and be made readily available to enrolled and prospective students on
the institution's website (or in other formats upon request).''.
(b) Information on Prohibiting Copyright Infringement.--Section
485(a)(1)(P) (20 U.S.C. 1092(a)(1)(P)) is amended by striking ``,
including--'' and all that follows and inserting a period.
(c) Elimination of Certain Reporting Requirements.--
(1) In general.--Section 485(a)(1) (20 U.S.C. 1092(a)(1))
is amended--
(A) by striking subparagraph (L);
(B) by redesignating subparagraphs (M) through (P)
as subparagraphs (L) through (O); and
(C) by striking subparagraphs (Q) through (V) and
inserting the following:
``(P) the fire safety report prepared by the
institution pursuant to subsection (i); and
``(Q) the link to the institution's information on
the College Dashboard website operated under section
132.''.
(2) Conforming amendments.--Section 485(a) (20 U.S.C.
1092(a)) is amended by striking paragraphs (3) through (7).
(d) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is
amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i)--
(i) by striking ``through financial aid
offices or otherwise'' and inserting ``through
the use of an interactive program, during an
exit counseling session that is in-person or
online, or through the use of the online
counseling tool described in subsection
(n)(1)(A)''; and
(ii) by inserting ``, as in effect on the
day before the date of enactment of the PROSPER
Act and pursuant to section 461(a) of such Act
or made under part E (other than Federal ONE
Parent Loans), as in effect on or after the
date of enactment of the PROSPER Act'' after
``part E'';
(B) by redesignating clauses (i) through (ix) as
clauses (iv) through (xii), respectively;
(C) by inserting before clause (iv), as so
redesignated, the following:
``(i) a summary of the outstanding balance
of principal and interest due on the loans made
to the borrower under this title;
``(ii) an explanation of the grace period
preceding repayment and the expected date that
the borrower will enter repayment;
``(iii) an explanation of cases of interest
capitalization and that the borrower has the
option to pay any interest that has accrued
while the borrower was in school or that may
accrue during the grace period preceding
repayment or during an authorized period of
deferment or forbearance, prior to the
capitalization of the interest;'';
(D) in clause (iv), as so redesignated--
(i) by striking ``sample information
showing the average'' and inserting
``information, based on the borrower's
outstanding balance described in clause (i),
showing the borrower's''; and
(ii) by striking ``of each plan'' and
inserting ``of at least the standard repayment
plan and the income-based repayment plan under
section 466(d)'';
(E) in clause (ix), as so redesignated--
(i) by inserting ``decreased credit
score,'' after ``credit reports,''; and
(ii) by inserting ``potential reduced
ability to rent or purchase a home or car,
potential difficulty in securing employment,''
after ``Federal law,'';
(F) in clause (x), as so redesignated, by striking
``consolidation loan under section 428C or a'';
(G) in clauses (xi) and (xii), as so redesignated,
by striking ``and'' at the end; and
(H) by adding at the end the following:
``(xiii) for each of the borrower's loans made
under this title for which the borrower is receiving
counseling under this subsection, the contact
information for the servicer of the loan and a link to
the Website of such servicer; and
``(xiv) an explanation that an individual has a
right to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).'';
(2) in paragraph (1)(B)--
(A) by inserting ``online or'' before ``in
writing''; and
(B) by adding before the period at the end the
following: ``, except that in the case of an
institution using the online counseling tool described
in subsection (n)(1)(A), the Secretary shall attempt to
provide such information to the student in the manner
described in subsection (n)(3)(C)''; and
(3) in paragraph (2)(C), by inserting ``, such as the
online counseling tool described in subsection (n)(1)(A),''
after ``electronic means''.
(e) Departmental Publication of Descriptions of Assistance
Programs.--The third sentence of section 485(d)(1) (20 U.S.C.
1092(d)(1)) is amended by striking ``part D'' and inserting ``part D or
E''.
(f) Amendments to Clery Act.--
(1) Preventing interference with criminal justice
proceedings; timely warnings; consistency of institutional
crime reporting.--Section 485(f) (20 U.S.C. 1092(f)) is
amended--
(A) by striking paragraph (3) and inserting the
following:
``(3) Each institution participating in any program under
this title, other than a foreign institution of higher
education, shall make timely reports to the campus community on
crimes described in paragraph (1)(F) that have been reported to
campus security officials and pose a serious and continuing
threat to other students and employees' safety. Such reports
shall withhold the names of victims as confidential and shall
be provided in a timely manner, except that an institution may
delay issuing a report if the issuance would compromise ongoing
law enforcement efforts, such as efforts to apprehend a
suspect. The report shall also include information designed to
assist students and employees in staying safe and avoiding
similar occurrences to the extent such information is available
and appropriate to include. In assessing institutional
compliance with this section, the Secretary shall defer to the
institution's determination of whether a particular crime poses
a serious and continuing threat to the campus community, and
the timeliness of such warning, provided that, in making its
decision, the institution acted reasonably and based on the
considered professional judgement of campus security officials,
based on the facts and circumstances known at the time.'';
(B) by redesignating paragraph (18) as paragraph
(20); and
(C) by inserting after paragraph (17) the
following:
``(18) Nothing in this subsection may be construed to prohibit an
institution of higher education from delaying the initiation of, or
suspending, an investigation or institutional disciplinary proceeding
involving an allegation of sexual assault in response to a request from
a law enforcement agency or a prosecutor to delay the initiation of, or
suspend, the investigation or proceeding, and any delay or suspension
of such an investigation or proceeding in response to such a request
may not serve as the grounds for any sanction or audit finding against
the institution or for the suspension or termination of the
institution's participation in any program under this title.
``(19)(A) Reporting carried out under this subsection shall be
conducted in a manner to ensure maximum consistency with the Uniform
Crime Reporting Program of the Department of Justice.
``(B) The Secretary shall require institutions of higher education
to report crime statistics under this section using definitions of such
crimes, when available, from the Uniform Crime Reporting Program of the
Department of Justice.
``(C) The Secretary shall maintain a publicly available and updated
list of all applicable definitions from the Uniform Crime Reporting
Program of the Department of Justice.
``(D) With respect to a report under this subsection, in the case
of a crime for which no Uniform Crime Reporting Program of the
Department of Justice definition exists, the Secretary shall require
that institutions of higher education report such crime according to a
definition provided by the Secretary.
``(E) An institution of higher education that reports a crime
described in subparagraph (D) shall not be subject to any penalty or
fine for reporting inaccuracies or omissions if the institution of
higher education can demonstrate that it made a reasonable and good
faith effort to report crimes consistent with the definition provided
by the Secretary.
``(F) With respect to a report under this subsection, the Secretary
shall require institutions of higher education to follow the Hierarchy
Rule for reporting crimes under the Uniform Crime Reporting Program of
the Department of Justice, so as to minimize duplicate reporting and
ensure greater consistency with national crime reporting systems.''.
(2) Due process requirements for institutional disciplinary
proceedings.--Section 485(f)(8)(B)(iv)(I) (20 U.S.C.
1092(f)(8)(B)(iv)(I)) is amended to read as follows:
``(I) the investigation of the allegation
and any institutional disciplinary proceeding
in response to the allegation shall be prompt,
impartial, and fair to both the accuser and the
accused by, at a minimum--
``(aa) providing all parties to the
proceeding with adequate written notice
of the allegation not later than 2
weeks prior to the start of any formal
hearing or similar adjudicatory
proceeding, and including in such
notice a description of all rights and
responsibilities under the proceeding,
a statement of all relevant details of
the allegation, and a specific
statement of the sanctions which may be
imposed;
``(bb) providing each person
against whom the allegation is made
with a meaningful opportunity to admit
or contest the allegation;
``(cc) ensuring that all parties to
the proceeding have access to all
material evidence not later than one
week prior to the start of any formal
hearing or similar adjudicatory
proceeding;
``(dd) ensuring that the proceeding
is carried out free from conflicts of
interest by ensuring that there is no
commingling of administrative or
adjudicative roles; and
``(ee) ensuring that the
investigation and proceeding shall be
conducted by officials who receive
annual education on issues related to
domestic violence, dating violence,
sexual assault, and stalking, and on
how to conduct an investigation and an
institutional disciplinary proceeding
that protects the safety of victims,
ensures fairness for both the accuser
and the accused, and promotes
accountability;''.
(3) Establishment of standard of evidence for institutional
disciplinary proceedings.--
(A) Inclusion in statement of policy.--Section
485(f)(8)(B) (20 U.S.C. 1092(f)(8)(B)) is amended by
adding at the end the following new clause:
``(viii) The establishment of a standard of
evidence that will be used in institutional
disciplinary proceedings involving allegations of
sexual assault, which may be based on such standards
and criteria as the institution considers appropriate
(including the institution's culture, history, and
mission, the values reflected in its student code of
conduct, and the purpose of the institutional
disciplinary proceedings) so long as the standard is
not arbitrary or capricious and is applied consistently
throughout all such proceedings.''.
(B) Conforming amendments.--Section
485(f)(8)(B)(iv) (20 U.S.C. 1092(f)(8)(B)(iv)) is
amended--
(i) by striking ``and'' at the end of
subclause (II);
(ii) by striking the period at the end of
subclause (III) and inserting ``; and''; and
(iii) by adding at the end the following
new subclause:
``(IV) in the case of a proceeding
involving an allegation of sexual assault, such
proceedings shall be conducted in accordance
with the standard of evidence established by
the institution under clause (viii), together
with a clear statement describing such standard
of evidence.''.
(4) Education modules for officials conducting
investigations and institutional disciplinary proceedings.--
Section 485(f)(8) (20 U.S.C. 1092(f)(8)) is amended by adding
at the end the following new subparagraph:
``(D) In consultation with experts from institutions of
higher education, law enforcement agencies, advocates for
sexual assault victims, experts in due process, and other
appropriate persons, the Secretary shall create and regularly
update modules which an institution of higher education may use
to provide the annual education described in subparagraph
(B)(iv)(I)(ee) for officials conducting investigations and
institutional disciplinary proceedings involving allegations
described in such subparagraph. If the institution uses such
modules to provide the education described in such
subparagraph, the institution shall be considered to meet any
requirement under such subparagraph or any other Federal law
regarding the education provided to officials conducting such
investigations and proceedings.''.
(g) Modification of Certain Reporting Requirements.--
(1) Fire safety.--Section 485(i) (20 U.S.C. 1092(i)) is
amended to read as follows:
``(i) Fire Safety Reports.--
``(1) Annual report.--Each eligible institution
participating in any program under this title that maintains
on-campus student housing facilities shall, on an annual basis,
publish a fire safety report, which shall contain information
with respect to the campus fire safety practices and standards
of that institution, statistics on any fire related incidents
or injuries, and any preventative measures or technologies.
``(2) Rules of construction.--Nothing in this subsection
shall be construed to--
``(A) authorize the Secretary to require particular
policies, procedures, programs, or practices by
institutions of higher education with respect to fire
safety;
``(B) affect section 444 of the General Education
Provisions Act (commonly known as the `Family Education
Rights and Privacy Act of 1974') or the regulations
issued under section 264 of the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C.
1320d-2 note);
``(C) create a cause of action against any
institution of higher education or any employee of such
an institution for any civil liability; or
``(D) establish any standard of care.
``(3) Evidence.--Notwithstanding any other provision of
law, evidence regarding compliance or noncompliance with this
subsection shall not be admissible as evidence in any
proceeding of any court, agency, board, or other entity, except
with respect to an action to enforce this subsection.''.
(2) Missing persons procedures.--
(A) In general.--Section 485(j)(1) (20 U.S.C.
1092(j)(1)) is amended to read as follows:
``(1) In general.--Each institution of higher education
that provides on-campus housing and participates in any program
under this title shall establish a missing student policy for
students who reside in on-campus housing that, at a minimum,
informs each residing student that the institution will notify
such student's designated emergency contact and the appropriate
law enforcement agency not later than 24 hours after the time
that the student is determined missing, and in the case of a
student who is under 18 years of age, the institution will
notify a custodial parent or guardian.''.
(B) Rule of construction.--Section 485(j)(2) (20
U.S.C. 1092(j)(2)) is amended--
(i) by striking ``or'' at the end of
subparagraph (A);
(ii) by striking the period at the end of
subparagraph (B) and inserting ``; or''; and
(iii) by adding at the end the following
new subparagraph:
``(C) to require an institution of higher education
to maintain separate missing student emergency contact
information, so long as the institution otherwise has
an emergency contact for students residing on
campus.''.
(h) Annual Counseling.--Section 485(l) (20 U.S.C. 1092(l)) is
amended to read as follows:
``(l) Annual Financial Aid Counseling.--
``(1) Annual disclosure required.--
``(A) In general.--Each eligible institution shall
ensure that each individual enrolled at such
institution who receives a Federal Pell Grant or a loan
made under this title (other than a Federal Direct
Consolidation Loan or Federal ONE Consolidation Loan)
receives comprehensive information on the terms and
conditions of such Federal Pell Grant or loan and the
responsibilities the individual has with respect to
such Federal Pell Grant or loan. Such information shall
be provided, for each award year for which the
individual receives such Federal Pell Grant or loan, in
a simple and understandable manner--
``(i) during a counseling session conducted
in person;
``(ii) online, with the individual
acknowledging receipt of the information; or
``(iii) through the use of the online
counseling tool described in subsection
(n)(1)(B).
``(B) Use of interactive programs.--In the case of
institutions not using the online counseling tool
described in subsection (n)(1)(B), the Secretary shall
require such institutions to carry out the requirements
of subparagraph (A)--
``(i) through the use of interactive
programs;
``(ii) during an annual counseling session
that is in-person or online that tests the
individual's understanding of the terms and
conditions of the Federal Pell Grant or loan
awarded to the student; and
``(iii) using simple and understandable
language and clear formatting.
``(2) All individuals.--The information to be provided
under paragraph (1) to each individual receiving counseling
under this subsection shall include the following:
``(A) An explanation of how the student may budget
for typical educational expenses and a sample budget
based on the cost of attendance for the institution.
``(B) An explanation that an individual has a right
to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).
``(C) Based on the most recent data available from
the American Community Survey available from the
Department of Commerce, the estimated average income
and percentage of employment in the State of domicile
of the borrower for persons with--
``(i) a high school diploma or equivalent;
``(ii) some post-secondary education
without completion of a degree or certificate;
``(iii) an associate's degree;
``(iv) a bachelor's degree; and
``(v) a graduate or professional degree.
``(D) An introduction to the financial management
resources provided by the Financial Literacy and
Education Commission.
``(3) Students receiving federal pell grants.--The
information to be provided under paragraph (1) to each student
receiving a Federal Pell Grant shall include the following:
``(A) An explanation of the terms and conditions of
the Federal Pell Grant.
``(B) An explanation of approved educational
expenses for which the student may use the Federal Pell
Grant.
``(C) An explanation of why the student may have to
repay the Federal Pell Grant.
``(D) An explanation of the maximum number of
semesters or equivalent for which the student may be
eligible to receive a Federal Pell Grant, and a
statement of the amount of time remaining for which the
student may be eligible to receive a Federal Pell
Grant.
``(E) An explanation that if the student transfers
to another institution not all of the student's courses
may be acceptable to apply toward meeting specific
degree or program requirements at such institution, but
the amount of time remaining for which a student may be
eligible to receive a Federal Pell Grant, as provided
under subparagraph (D), will not change.
``(F) An explanation of how the student may seek
additional financial assistance from the institution's
financial aid office due to a change in the student's
financial circumstances, and the contact information
for such office.
``(4) Borrowers receiving loans made this title (other than
federal direct plus loans made on behalf of dependent students
or federal one parent loans).--The information to be provided
under paragraph (1) to a borrower of a loan made under this
title (other than other than a Federal Direct PLUS Loan made on
behalf of a dependent student or a Federal ONE Parent Loan)
shall include the following:
``(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the eligibility
of the borrower for other forms of student financial
assistance.
``(B) An explanation of the use of the master
promissory note.
``(C) An explanation that the borrower is not
required to accept the full amount of the loan offered
to the borrower.
``(D) An explanation that the borrower should
consider accepting any grant, scholarship, or State or
Federal work-study jobs for which the borrower is
eligible prior to accepting Federal student loans.
``(E) An explanation of treatment of loans made
under this title and private education loans in
bankruptcy, and an explanation that if a borrower
decides to take out a private education loan--
``(i) the borrower has the ability to
select a private educational lender of the
borrower's choice;
``(ii) the proposed private education loan
may impact the borrower's potential eligibility
for other financial assistance, including
Federal financial assistance under this title;
and
``(iii) the borrower has a right--
``(I) to accept the terms of the
private education loan within 30
calendar days following the date on
which the application for such loan is
approved and the borrower receives the
required disclosure documents, pursuant
to section 128(e)(6) of the Truth in
Lending Act; and
``(II) to cancel such loan within 3
business days of the date on which the
loan is consummated, pursuant to
section 128(e)(7) of such Act.
``(F) An explanation of the approved educational
expenses for which the borrower may use a loan made
under this title.
``(G) Information on the annual and aggregate loan
limits for a loan made under this title.
``(H) Information on interest, including the annual
percentage rate of such loan, as calculated using the
standard 10-year repayment term, and how interest
accrues and is capitalized during periods when the
interest is not paid by the borrower.
``(I) The option of the borrower to pay the
interest while the borrower is in school.
``(J) The definition of half-time enrollment at the
institution, during regular terms and summer school, if
applicable, and the consequences of not maintaining at
least half-time enrollment.
``(K) An explanation of the importance of
contacting the appropriate offices at the institution
of higher education if the borrower withdraws prior to
completing the borrower's program of study so that the
institution can provide exit counseling, including
information regarding the borrower's repayment options
and loan consolidation.
``(L) For a first-time borrower or a borrower of a
loan under this title who owes no principal or interest
on such loan--
``(i) a statement of the anticipated
balance on the loan for which the borrower is
receiving counseling under this subsection;
``(ii) based on such anticipated balance,
the anticipated monthly payment amount under,
at minimum--
``(I) the standard repayment plan;
and
``(II) an income-based repayment
plan under section 466(d) or 493C, as
determined using available percentile
data from the Bureau of Labor
Statistics of the starting salary for
the occupation in which the borrower
has an interest in or intends to be
employed; and
``(iii) an estimate of the projected
monthly payment amount under each repayment
plan described in clause (ii), based on the
average cumulative indebtedness at graduation
for borrowers of loans made under this title
who are in the same program of study as the
borrower.
``(M) For a borrower with an outstanding balance of
principal or interest due on a loan made under this
title--
``(i) a current statement of the amount of
such outstanding balance and interest accrued;
``(ii) based on such outstanding balance,
the anticipated monthly payment amount under
the standard repayment plan, and the income-
based repayment plan under section 466(d) or
493C, as determined using available percentile
data from the Bureau of Labor Statistics of the
starting salary for the occupation the borrower
intends to be employed; and
``(iii) an estimate of the projected
monthly payment amount under each repayment
plan described in clause (ii), based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
student is receiving counseling under
this subsection; and
``(III) a projection for any other
loans made under this title that the
borrower is reasonably expected to
accept during the borrower's program of
study based on at least the expected
increase in the cost of attendance of
such program.
``(N) The obligation of the borrower to repay the
full amount of the loan, regardless of whether the
borrower completes or does not complete the program in
which the borrower is enrolled within the regular time
for program completion.
``(O) The likely consequences of default on the
loan, including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation, and a notice of the institution's most
recent loan repayment rate (as defined in section 481B)
for the educational program in which the borrower is
enrolled, an explanation of the loan repayment rate,
and the most recent national average loan repayment
rate for an educational program.
``(P) Information on the National Student Loan Data
System and how the borrower can access the borrower's
records.
``(Q) The contact information for the institution's
financial aid office or other appropriate office at the
institution the borrower may contact if the borrower
has any questions about the borrower's rights and
responsibilities or the terms and conditions of the
loan.
``(5) Borrowers receiving federal direct plus loans for
dependent students or federal one parent loans.--The
information to be provided under paragraph (1) to a borrower of
a Federal Direct PLUS Loan for a dependent student or a Federal
ONE Parent Loan shall include the following:
``(A) The information described in subparagraphs
(A) through (C) and (N) through (Q) of paragraph (4).
``(B) An explanation of the treatment of the loan
and private education loans in bankruptcy.
``(C) Information on the annual and aggregate loan
limits.
``(D) Information on the annual percentage rate of
the loan.
``(E) The option of the borrower to pay the
interest on the loan while the loan is in deferment.
``(F) For a first-time borrower of a loan or a
borrower of a loan under this title who owes no
principal or interest on such loan--
``(i) a statement of the anticipated
balance on the loan for which the borrower is
receiving counseling under this subsection;
``(ii) based on such anticipated balance,
the anticipated monthly payment amount under
the standard repayment plan; and
``(iii) an estimate of the projected
monthly payment amount under the standard
repayment plan, based on the average cumulative
indebtedness of other borrowers of loans made
under this title on behalf of dependent
students who are in the same program of study
as the student on whose behalf the borrower
borrowed the loan.
``(G) For a borrower with an outstanding balance of
principal or interest due on such loan--
``(i) a statement of the amount of such
outstanding balance;
``(ii) based on such outstanding balance,
the anticipated monthly payment amount under
the standard repayment plan; and
``(iii) an estimate of the projected
monthly payment amount under the standard
repayment plan, based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
borrower is receiving counseling under
this subsection; and
``(III) a projection for any other
Federal Direct PLUS Loan made on behalf
of the dependent student or Federal ONE
Parent Loan that the borrower is
reasonably expected to accept during
the program of study of such student
based on at least the expected increase
in the cost of attendance of such
program.
``(H) Debt management strategies that are designed
to facilitate the repayment of such indebtedness.
``(I) An explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans.
``(J) For each Federal Direct PLUS Loan and each
Federal ONE Parent Loan for which the borrower is
receiving counseling under this subsection, the contact
information for the loan servicer of the loan and a
link to such servicer's Website.
``(6) Annual loan acceptance.--Prior to making the first
disbursement of a loan made under this title (other than a
Federal Direct Consolidation Loan or Federal ONE Consolidation
Loan) to a borrower for an award year, an eligible institution,
shall, as part of carrying out the counseling requirements of
this subsection for the loan, ensure that after receiving the
applicable counseling under paragraphs (2), (4), and (5) for
the loan the borrower accepts the loan for such award year by--
``(A) signing the master promissory note for the
loan;
``(B) signing and returning to the institution a
separate written statement that affirmatively states
that the borrower accepts the loan; or
``(C) electronically signing an electronic version
of the statement described in subparagraph (B).''.
(i) Online Counseling Tools.--Section 485 (20 U.S.C. 1092) is
further amended by adding at the end the following:
``(n) Online Counseling Tools.--
``(1) In general.--Beginning not later than 1 year after
the date of enactment of the PROSPER Act, the Secretary shall
maintain--
``(A) an online counseling tool that provides the
exit counseling required under subsection (b) and meets
the applicable requirements of this subsection; and
``(B) an online counseling tool that provides the
annual counseling required under subsection (l) and
meets the applicable requirements of this subsection.
``(2) Requirements of tools.--In maintaining the online
counseling tools described in paragraph (1), the Secretary
shall ensure that each such tool is--
``(A) consumer tested to ensure that the tool is
effective in helping individuals understand their
rights and obligations with respect to borrowing a loan
made this title or receiving a Federal Pell Grant;
``(B) understandable to students receiving Federal
Pell Grants and borrowers of loans made this title; and
``(C) freely available to all eligible
institutions.
``(3) Record of counseling completion.--The Secretary
shall--
``(A) use each online counseling tool described in
paragraph (1) to keep a record of which individuals
have received counseling using the tool, and notify the
applicable institutions of the individual's completion
of such counseling;
``(B) in the case of a borrower who receives annual
counseling for a loan made under this title using the
tool described in paragraph (1)(B), notify the borrower
by when the borrower should accept, in a manner
described in subsection (l)(6), the loan for which the
borrower has received such counseling; and
``(C) in the case of a borrower described in
subsection (b)(1)(B) at an institution that uses the
online counseling tool described in paragraph (1)(A) of
this subsection, the Secretary shall attempt to provide
the information described in subsection (b)(1)(A) to
the borrower through such tool.''.
SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
Section 485E (21 U.S.C. 20 U.S.C. 1092f) is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) by striking ``junior year'' and
inserting ``sophomore year'';
(ii) by striking ``The Secretary shall
ensure that'' and inserting ``The Secretary
shall--
``(A) ensure that''; and
(iii) by adding at the end the following:
``(B) create an online platform for States,
institutions of higher education, other organizations
involved in college access and student financial aid,
secondary schools, and programs under this title that
serve secondary school students to share best practices
on disseminating information under this section.''; and
(B) in paragraph (4)--
(i) in the first sentence--
(I) by striking ``Not later than
two years after the date of enactment
of the Higher Education Opportunity
Act, the'' and inserting ``The''; and
(II) by inserting ``continue to''
before ``implement''; and
(ii) in the second sentence, by striking
``the Internet'' and inserting ``the Internet,
including through social media''; and
(2) by adding at the end the following:
``(c) Online Estimator Tool.--
``(1) In general.--Not later than 1 year after the date of
enactment of the PROSPER Act, the Secretary, in consultation
with States, institutions of higher education, and other
individuals with experience or expertise in student financial
assistance application processes, shall develop an early
estimator tool to be available online and through a mobile
application, which--
``(A) allows an individual to--
``(i) enter basic financial and other
relevant information; and
``(ii) on the basis of such information,
receive non-binding estimates of potential
Federal grant, loan, or work study assistance
under this title for which a student may be
eligible upon completion of an application form
under section 483(a);
``(B) with respect to each institution of higher
education that participates in a program under this
title selected by an individual for purposes of the
estimator tool, provides the individual with the net
price (as defined in section 132) for the income
category described in paragraph (2) that is determined
on the basis of the information under subparagraph
(A)(i) of this paragraph entered by the individual; and
``(C) includes a clear and conspicuous disclaimer
that the amounts calculated using the estimator tool
are estimates based on limited financial information,
and that--
``(i) each such estimate--
``(I) in the case of an estimate
under subparagraph (A), is only an
estimate and does not represent a final
determination, or actual award, of
financial assistance under this title;
``(II) in the case of an estimate
under subparagraph (B), is only an
estimate and not a guarantee of the
actual amount that a student may be
charged;
``(III) shall not be binding on the
Secretary or an institution of higher
education; and
``(IV) may change; and
``(ii) a student must complete an
application form under section 483(a) in order
to be eligible for, and receive, an actual
financial aid award that includes Federal
grant, loan, or work study assistance under
this title.
``(2) Income categories.--The income categories for
purposes of paragraph (1)(B) are as follows:
``(A) $0 to $30,000.
``(B) $30,001 to $48,000.
``(C) $48,001 to $75,000.
``(D) $75,001 to $110,000.
``(E) $110,001 to $150,000.
``(F) Over $150,000.
``(3) Consumer testing.--In developing and maintaining the
estimator tool described in paragraph (1), the Secretary shall
conduct consumer testing with appropriate persons, including
current and prospective college students, family members of
such students, and other individuals with expertise in student
financial assistance application processes and college access,
to ensure that such tool is easily understandable by students
and families and effective in communicating early aid
eligibility.
``(4) Data storage prohibited.--In carrying out this
subsection, the Secretary shall not keep, store, or warehouse
any data inputted by individuals accessing the tool described
in paragraph (1).
``(d) Pell Table.--
``(1) In general.--The Secretary shall develop, and
annually update at the beginning of each award year, the
following electronic tables to be utilized in carrying out this
section and containing the information described in paragraph
(2) of this subsection:
``(A) An electronic table for dependent students.
``(B) An electronic table for independent students
with dependents other than a spouse.
``(C) An electronic table for independent students
without dependents other than a spouse.
``(2) Information.--Each electronic table under paragraph
(1), with respect to the category of students to which the
table applies for the most recently completed award year for
which information is available, and disaggregated in accordance
with paragraph (3), shall contain the following information:
``(A) The percentage of undergraduate students
attending an institution of higher education on a full-
time, full-academic year basis who file the financial
aid form prescribed under section 483 for the award
year and received, for their first academic year during
such award year (and not for any additional payment
periods after such first academic year), the following:
``(i) A Federal Pell Grant equal to the
maximum amount of a Federal Pell Grant award
determined under section 401(b)(2) for such
award year.
``(ii) A Federal Pell Grant in an amount
that is--
``(I) less than the maximum amount
described in clause (i); and
``(II) not less than \3/4\ of such
maximum amount for such award year.
``(iii) A Federal Pell Grant in an amount
that is--
``(I) less than \3/4\ of such
maximum amount; and
``(II) not less than \1/2\ of such
maximum amount for such award year.
``(iv) A Federal Pell Grant in an amount
that is--
``(I) less than \1/2\ of such
maximum amount; and
``(II) not less than the minimum
Federal Pell Grant amount determined
under section 401(b)(4) for such award
year.
``(B) The dollar amounts equal to--
``(i) the maximum amount of a Federal Pell
Grant award determined under section 401(b)(2)
for an award year;
``(ii) \3/4\ of such maximum amount;
``(iii) \1/2\ of such maximum amount; and
``(iv) the minimum Federal Pell Grant
amount determined under section 401(b)(4) for
such award year.
``(C) A clear and conspicuous notice that--
``(i) the Federal Pell Grant amounts listed
in subparagraph (B) are for a previous award
year, and such amounts and the requirements for
awarding such amounts may be different for
succeeding award years; and
``(ii) the Federal Pell Grant amount for
which a student may be eligible will be
determined based on a number of factors,
including enrollment status, once the student
completes an application form under section
483(a).
``(D) A link to the early estimator tool described
in subsection (c) of this section, which includes an
explanation that an individual may estimate a student's
potential Federal aid eligibility under this title by
accessing the estimator on the individual's mobile
phone or online.
``(3) Income categories.--The information provided under
paragraph (2)(A) shall be disaggregated by the following income
categories:
``(A) Less than $5,000.
``(B) $5,000 to $9,999.
``(C) $10,000 to $19,999.
``(D) $20,000 to $29,999.
``(E) $30,000 to $39,999.
``(F) $40,000 to $49,999.
``(G) $50,000 to $59,999.
``(H) Greater than $59,999.
``(e) Limitation.--The Secretary may not require a State to
participate in the activities or disseminate the materials described in
this section.''.
SEC. 490. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
Section 486 (20 U.S.C. 1093(b)) is repealed.
SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREEMENTS.
(a) Program Participation Agreements.--Section 487(a) (20 U.S.C.
1094(a)) is amended in the matter before paragraph (1) by striking ``,
except with respect to a program under subpart 4 of part A''.
(b) Perkins Conforming Changes.--Section 487(a)(5) (20 U.S.C.
1094(a)(5)) is amended by striking ``and, in the case of an institution
participating in a program under part B or part E, to holders of loans
made to the institution's students under such parts''.
(c) Certifications to Lenders.--Section 487(a) (20 U.S.C. 1094(a))
is amended by striking paragraph (6).
(d) State Grant Assistance.--Section 487(a)(9) (20 U.S.C.
1094(a)(9)) is amended by striking ``in a program under part B or D''
and inserting ``in a loan program under this title''.
(e) Drug Abuse Prevention Programs.--Section 487(a) (20 U.S.C.
1094(a)) is amended by striking paragraph (10).
(f) Repayment Success Plan.--Section 487(a)(14) (20 U.S.C.
1094(a)(14)) is amended--
(1) by striking ``under part B or D'' both places it
appears and inserting ``a loan program under this title'';
(2) by striking ``Default Management Plan'' both places it
appears and inserting ``Repayment Success Plan''; and
(3) in subparagraph (C), by striking ``a cohort default
rate in excess of 10 percent'' both places it appears and
inserting ``any program with a loan repayment rate less than 65
percent''.
(g) Commissions to Third-Party Entities.--Section 487(a)(20) (20
U.S.C. 1094(a)(20)) is amended--
(1) by striking ``The institution'' and inserting ``(A)
Except as provided in subparagraph (B), the institution''; and
(2) by adding at the end the following new subparagraph:
``(B) An institution described in section 101 may provide
payment, based on--
``(i) the amount of tuition generated by the
institution from student enrollment, to a third-party
entity that provides a set of services to the
institution that includes student recruitment services,
regardless of whether the third-party entity is
affiliated with an institution that provides
educational services other than the institution
providing such payment, if--
``(I) the third-party entity is not
affiliated with the institution providing such
payment;
``(II) the third-party entity does not make
compensation payments to its employees that
would be prohibited under subparagraph (A) if
such payments were made by the institution;
``(III) the set of services provided to the
institution by the third-party entity include
services in addition to student recruitment
services, and the institution does not pay the
third-party entity solely or separately for
student recruitment services provided by the
third-party entity; and
``(IV) any student recruitment information
available to the third-party entity, including
personally identifiable information, will not
be used by, shared with, or sold to any other
person or entity, including any institution
that is affiliated with the third-party entity,
unless written consent is provided by the
student; and
``(ii) students successfully completing their
educational programs, to persons who were engaged in
recruiting such students, but solely to the extent that
such payments--
``(I) are obligated to be paid, and are
actually paid, only after each student upon
whom such payments are based has successfully
completed his or her educational program; and
``(II) are paid only to employees of the
institution or its parent company, and not to
any other person or outside entity.''.
(h) Clarification of Proof of Authority To Operate Within a
State.--Section 487(a)(21) (20 U.S.C. 1094(a)(21)) is amended by
striking ``within a State'' and inserting ``within a State in which it
maintains a physical location''.
(i) Distribution of Voter Registration Forms.--Section 487(a)(23)
(20 U.S.C. 1094(a)(23)) is amended to read as follows:
``(23) The institution, if located in a State to which
section 4(b) of the National Voter Registration Act of 1993 (42
U.S.C. 1973gg-2(b)) does not apply, will make a good faith
effort to distribute, including through electronic
transmission, voter registration forms to students enrolled and
physically in attendance at the institution.''.
(j) Prohibiting Copyright Infringement.--Section 487(a)(29) (20
U.S.C. 1094(a)(29)) is amended to read as follows:
``(29) The institution will have a policy prohibiting
copyright infringement.''.
(k) Modifications to Preferred Lender List Requirements.--Section
487(h)(1) (20 U.S.C. 1094(h)(1)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by inserting ``and'' after the
semicolon;
(B) by striking clause (ii); and
(C) by redesignating clause (iii) as clause (ii);
(2) in subparagraph (D), by inserting ``and'' after the
semicolon;
(3) in subparagraph (E), by striking ``; and'' and
inserting a period; and
(4) by striking subparagraph (C) and (F) and redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively.
(l) Elimination of Non-Title IV Revenue Requirement.--Section 487
(20 U.S.C. 1094), is further amended--
(1) in subsection (a), by striking paragraph (24);
(2) by striking subsection (d); and
(3) by redesignating subsections (e) through (j) as
subsections (d) through (i), respectively.
(m) Conforming Amendments.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(1) in section 487(a) (20 U.S.C. 1094(a)), as amended by
this section--
(A) by redesignating paragraphs (7) through (9), as
paragraphs (6) through (8), respectively;
(B) by redesignating paragraphs (11) through (23)
as paragraphs (9) through (21), respectively; and
(C) by redesignating paragraphs (25) through (29)
as paragraphs (22) through (26), respectively;
(2) in section 487(c)(1)(A)(iii) (20 U.S.C.
1094(c)(1)(A)(iii)), by striking ``section 102(a)(1)(C)'' and
inserting ``section 102(a)(1)''; and
(3) in section 487(h)(4) (20 U.S.C. 1094(h)(4)), as
redesignated by subsection (l)(3), by striking ``section 102''
and inserting ``section 101 or 102''.
SEC. 492. REGULATORY RELIEF AND IMPROVEMENT.
Section 487A (20 U.S.C. 1094a) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``The Secretary
is authorized to'' and inserting ``The Secretary
shall''; and
(B) in paragraph (5), by inserting ``at least once
every two years'' before the period at the end; and
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in the paragraph heading, by inserting
``Annual'' before ``Report''; and
(ii) by striking the first sentence and
inserting ``The Secretary shall review the
experience, and rigorously evaluate the
activities, of all institutions participating
as experimental sites and shall, on an annual
basis, submit a report based on the review and
evaluation findings to the authorizing
committees.'';
(B) in paragraph (3), by amending subparagraph (A)
to read as follows:
``(A) In general.--
``(i) Experimental sites.--The Secretary is
authorized periodically to select a limited
number of institutions for voluntary
participation as experimental sites to provide
recommendations to the Secretary and to the
Congress on the impact and effectiveness of
proposed regulations or new management
initiatives.
``(ii) Congressional notice and comments
required.--
``(I) Notice.--Prior to announcing
a new experimental site and inviting
institutions to participate, the
Secretary shall provide to the
authorizing committees a notice that
shall include--
``(aa) a description of the
proposed experiment and
rationale for the proposed
experiment; and
``(bb) a list of the
institutional requirements the
Secretary expects to waive and
the legal authority for such
waivers.
``(II) Congressional comments.--The
Secretary shall not proceed with
announcing a new experimental site and
inviting institutions to participate
until 10 days after the Secretary--
``(aa) receives and
addresses all comments from the
authorizing committees; and
``(bb) responds to such
committees in writing with an
explanation of how such
comments have been addressed.
``(iii) Prohibition.--The Secretary is not
authorized to carry out clause (i) in any year
in which an annual report described in
paragraph (2) relating to the previous year is
not submitted to the authorizing committees.'';
(C) in paragraph (4)(A), by striking ``biennial''
and inserting ``annual''; and
(D) by striking paragraph (1) and redesignating
paragraphs (2) through (4) as paragraphs (1) through
(3), respectively.
SEC. 493. TRANSFER OF ALLOTMENTS.
Section 488 (20 U.S.C. 1095) is amended--
(1) by inserting ``, as in effect on the day before the
date of enactment of the PROSPER Act,'' after ``section 462'';
and
(2) by inserting ``, as in effect on the day before the
date of enactment of the PROSPER Act,'' after ``462''.
SEC. 494. ADMINISTRATIVE EXPENSES.
Section 489(a) (20 U.S.C. 1096(a)) is amended--
(1) in the second sentence--
(A) by striking ``subpart 3 of part A or part C,''
and inserting ``part C''; and
(B) by striking ``or under part E of this title'';
and
(2) in the third sentence--
(A) by striking ``its grants to students under
subpart 3 of part A,''; and
(B) by striking ``, and the principal amount of
loans made during such fiscal year from its student
loan fund established under part E, excluding the
principal amount of any such loans which the
institution has referred under section 463(a)(4)(B)''.
SEC. 494A. REPEAL OF ADVISORY COMMITTEE.
Section 491 (20 U.S.C. 1098) is repealed.
SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
Section 492 (20 U.S.C. 1098a) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(f) and (g), respectively; and
(2) by striking subsections (a) and (b) and inserting the
following:
``(a) In General.--The Secretary may, in accordance with this
section, issue such regulations as are reasonably necessary to ensure
compliance with this title.
``(b) Public Involvement.--The Secretary shall obtain public
involvement in the development of proposed regulations for this title.
Before carrying out a negotiated rulemaking process as described in
subsection (d) or publishing in the Federal Register proposed
regulations to carry out this title, the Secretary shall obtain advice
and recommendations from individuals, and representatives of groups,
involved in student financial assistance programs under this title,
such as students, institutions of higher education, financial aid
administrators, accrediting agencies or associations, State student
grant agencies, guaranty agencies, lenders, secondary markets, loan
servicers, guaranty agency servicers, and collection agencies.
``(c) Meetings and Electronic Exchange.--
``(1) In general.--The Secretary shall provide for a
comprehensive discussion and exchange of information concerning
the implementation of this title through such mechanisms as
regional meetings and electronic exchanges of information. Such
regional meetings and electronic exchanges of information shall
be public and notice of such meetings and exchanges shall be
provided to--
``(A) the authorizing committees at least 10 days
prior to the notice to interested stakeholders and the
public described in subparagraph (B); and
``(B) interested stakeholders and the public at
least 30 days prior to such meetings and exchanges.
``(2) Consideration.--The Secretary shall take into account
the information received through such mechanisms in the
development of proposed regulations and shall publish a summary
of such information in the Federal Register prior to beginning
the negotiated rulemaking process described in subsection (d).
``(d) Negotiated Rulemaking Process.--
``(1) Negotiated rulemaking required.--All regulations
pertaining to this title that are promulgated after the date of
the enactment of this paragraph shall be subject to the
negotiated rulemaking process described in this subsection
(including the selection of the issues to be negotiated),
unless the Secretary--
``(A) determines that applying such a requirement
with respect to given regulations is impracticable,
unnecessary, or contrary to the public interest (within
the meaning of section 553(b)(3)(B) of title 5, United
States Code);
``(B) publishes the basis for such determination in
the Federal Register at the same time as the proposed
regulations in question are first published; and
``(C) includes the basis for such determination in
the congressional notice under subsection (e)(1).
``(2) Congressional notice and comments required.--
``(A) Notice.--The Secretary shall provide to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate notice of
the intent establish a negotiated rulemaking committee
that shall include--
``(i) the need to issue regulations;
``(ii) the statutory and legal authority of
the Secretary to regulate the issue;
``(iii) the summary of public comments
described in paragraph (2) of subsection (c);
``(iv) the anticipated burden, including
the time, cost, and paperwork burden, the
regulations will have on institutions of higher
education and other entities that may be
impacted by the regulations; and
``(v) any regulations that will be repealed
when the new regulations are issued.
``(B) Congressional comments.--The Secretary shall
not proceed with the negotiated rulemaking process--
``(i) until 10 days after the Secretary--
``(I) receives and addresses all
comments from the authorizing
committees; and
``(II) responds to the authorizing
committees in writing with an
explanation of how such comments have
been addressed; or
``(ii) until 60 days after providing the
notice required under subparagraph (A) if the
Secretary has not received comments under
clause (i).
``(3) Process.--After obtaining advice and recommendations
under subsections (b) and (c), and before publishing proposed
regulations, the Secretary shall--
``(A) establish a negotiated rulemaking process;
``(B) select individuals to participate in such
process--
``(i) from among individuals or groups that
provided advice and recommendations under
subsections (b) and (c), including--
``(I) representatives of such
groups from Washington, DC; and
``(II) other industry participants;
and
``(ii) with demonstrated expertise or
experience in the relevant subjects under
negotiation, reflecting the diversity in the
industry, representing both large and small
participants, as well as individuals serving
local areas and national markets;
``(C) prepare a draft of proposed policy options,
which shall take into account comments received from
both the public and the authorizing committees, that
shall be provided to the individuals selected by the
Secretary under subparagraph (B) and such authorizing
committees not less than 15 days before the first
meeting under such process; and
``(D) ensure that the negotiation process is
conducted in a timely manner in order that the final
regulations may be issued by the Secretary within the
360-day period described in section 437(e) of the
General Education Provisions Act (20 U.S.C. 1232(e)).
``(4) Agreements and records.--
``(A) Agreements.--All published proposed
regulations developed through the negotiation process
under this subsection shall conform to all agreements
resulting from such process unless the Secretary
reopens the negotiated rulemaking process.
``(B) Records.--The Secretary shall ensure that a
clear and reliable record is maintained of agreements
reached during a negotiation process under this
subsection.
``(e) Proposed Rulemaking.--If the Secretary determines pursuant to
subsection (d)(1) that a negotiated rulemaking process is
impracticable, unnecessary, or contrary to the public interest (within
the meaning of section 553(b)(3)(B) of title 5, United States Code), or
the individuals selected to participate in the process under subsection
(d)(3)(B) fail to reach unanimous agreement on an issue being
negotiated, the Secretary may propose regulations subject to subsection
(f).
``(f) Requirements for Proposed Regulations.--Regulations proposed
pursuant to subsection (e) shall meet the following procedural
requirements:
``(1) Congressional notice.--Regardless of whether
congressional notice was submitted under subsection (d)(2), the
Secretary shall provide to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate notice
that shall include--
``(A) a copy of the proposed regulations;
``(B) the need to issue regulations;
``(C) the statutory and legal authority of the
Secretary to regulate the issue;
``(D) the anticipated burden, including the time,
cost, and paperwork burden, the regulations will have
on institutions of higher education and other entities
that may be impacted by the regulations; and
``(E) any regulations that will be repealed when
the new regulations are issued.
``(2) Congressional comments.--The Secretary may not
proceed with the rulemaking process--
``(A) until 10 days after the Secretary--
``(i) receives and addresses all comments
from the authorizing committees; and
``(ii) responds to the authorizing
committees in writing with an explanation of
how such comments have been addressed; or
``(B) until 60 days after providing the notice
required under paragraph (1) if the Secretary has not
received comments under subparagraph (A).
``(3) Comment and review period.--The comment and review
period for the proposed regulation shall be 90 days unless an
emergency requires a shorter period, in which case such period
shall be not less than 45 days and the Secretary shall--
``(A) designate the proposed regulation as an
emergency, with an explanation of the emergency, in the
notice to the Congress under paragraph (1);
``(B) publish the length of the comment and review
period in such notice and in the Federal Register; and
``(C) conduct immediately thereafter regional
meetings to review such proposed regulation before
issuing any final regulation.
``(4) Independent assessment.--No regulation shall be made
final after the comment and review period until the Secretary
has published in the Federal Register an independent assessment
(which shall include a representative sampling of institutions
of higher education based on sector, enrollment, urban,
suburban, or rural character, and other factors impacted by the
regulation) of--
``(A) the burden, including the time, cost, and
paperwork burden, the final regulation will impose on
institutions and other entities that may be impacted by
the regulation;
``(B) an explanation of how the entities described
in subparagraph (A) may cover the cost of the burden
assessed under such subparagraph; and
``(C) the regulation, including a thorough
assessment, based on the comments received during the
comment and review period under paragraph (3), of
whether the rule is financially, operationally, and
educationally viable at the institutional level.''.
SEC. 494C. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.
Section 493D(a) (20 U.S.C. 1098f) is amended, by striking ``or
section 464(c)(2)(A)(iii)'' and inserting ``, section 464(c)(2)(A)(iii)
(as in effect on the day before the date of enactment of the PROSPER
Act and pursuant to section 461(a)), or section 469A(a)(2)(A)(iii)''.
SEC. 494D. CONTRACTS; MATCHING PROGRAM.
(a) Contracts for Supplies and Services.--
(1) In general.--Part G of title IV (20 U.S.C. 1088 et
seq.), as amended by this part, is further amended by adding at
the end the following:
``SEC. 493E. CONTRACTS.
``(a) Contracts for Supplies and Services.--
``(1) In general.--The Secretary shall, to the extent
practicable, award contracts for origination, servicing, and
collection described in subsection (b). In awarding such
contracts, the Secretary shall ensure that such services and
supplies are provided at competitive prices.
``(2) Entities.--The entities with which the Secretary may
enter into contracts shall include entities qualified to
provide such services and supplies and will comply with the
procedures applicable to the award of such contracts. In the
case of awarding contracts for the origination, servicing, and
collection of loans under parts D and E, the Secretary shall
enter into contracts with entities that have extensive and
relevant experience and demonstrated effectiveness. The
entities with which the Secretary may enter into such contracts
may include, where practicable, agencies with agreements with
the Secretary under sections 428(b) and (c), if such agencies
meet the qualifications as determined by the Secretary under
this subsection and if those agencies have such experience and
demonstrated effectiveness. In awarding contracts to such State
agencies, the Secretary shall, to the extent practicable and
consistent with the purposes of parts D and E, give
consideration to State agencies with a history of high quality
performance to perform services for institutions of higher
education within their State.
``(3) Allocations.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall allocate new
borrower loan accounts to entities awarded a contract
under this section on the basis of--
``(i) the performance of each such entity
compared to other such entities performing
similar work using common performance metrics,
as determined by the Secretary; and
``(ii) the capacity of each such entity
compared to other such entities performing
similar work to service new and existing
borrower loan accounts.
``(B) Federal one consolidation loans.--Any
borrower who receives a Federal ONE Consolidation Loan
may select the entity awarded a contract under this
section to service such loan.
``(4) Rule of construction.--Nothing in this section shall
be construed as a limitation of the authority of any State
agency to enter into an agreement for the purposes of this
section as a member of a consortium of State agencies.
``(b) Contracts for Origination, Servicing, and Data Systems.--The
Secretary may enter into contracts for--
``(1) the servicing and collection of loans made or
purchased under part D or E;
``(2) the establishment and operation of one or more data
systems for the maintenance of records on all loans made or
purchased under part D or E; and
``(3) such other aspects of the direct student loan program
under part D or E necessary to ensure the successful operation
of the program.
``(c) Common Performance Manual.--
``(1) Consultation.--Not later than 180 days after the date
of enactment of the PROSPER Act and biannually thereafter, the
Secretary shall consult (in writing and in person) with
entities awarded contracts for loan servicing under section 456
(as in effect on the day before the date of enactment of the
PROSPER Act) and this section, to the extent practicable, to
develop and update as necessary, a guidance manual for entities
awarded contracts for loan servicing under this section that
provides such entities with best practices to ensure borrowers
receive adequate and consistent service from such entities.
``(2) Provision of manual.--The Secretary shall provide the
most recent guidance manual developed and updated under
paragraph (1) to each entity awarded a contract for loan
serving under this section.
``(3) Annual report.--The Secretary shall provide to the
authorizing committees a report, on a annual basis, detailing
the consultation required under paragraph (1).
``(d) Federal Preemption.--
``(1) Disclosure and communications.--An entity awarded a
contract under this section for the origination, servicing, and
collection of loans made under this title shall not be subject
to any law or other requirement of any State or political
subdivision of a State with respect to--
``(A) disclosure requirements; or
``(B) requirements or restrictions on the time,
quantity, or frequency of communications with
borrowers, endorsers, or references with respect to
such loans.
``(2) Servicing and collection.--The requirements of this
section with respect to the serving or collection of loans
shall preempt any law or other requirement of a State or
political subdivision of a State to the extent that such law or
other requirement would, in the absence of this subsection,
apply to a loan servicer, or the servicing or collection, of a
loan made under this title.
``(3) Limitation.--This subsection shall not have any legal
effect on any other preemption provision under Federal law with
respect to this title.''.
(2) Conforming amendment.--Section 456 (20 U.S.C. 1087f) is
repealed.
(b) Matching Program.--Part G of section IV (20 U.S.C. 1088 et
seq.), as amended by subsection (a), is further amended by adding at
the end the following:
``SEC. 493F. MATCHING PROGRAM.
``(a) In General.--The Secretary of Education and the Secretary of
Veterans Affairs shall carry out a computer matching program under
which the Secretary of Education identifies, on at least a quarterly
basis, borrowers--
``(1) who have been assigned a disability rating of 100
percent (or a combination of ratings equaling 100 percent or
more) by the Secretary of Veterans Affairs for a service-
connected disability (as defined in section 101 of title 38,
United States Code); or
``(2) who have been determined by the Secretary of Veterans
Affairs to be unemployable due to a service-connected
condition, as described in section 437(a)(2).
``(b) Borrower Notification.--With respect to each borrower who is
identified under subsection (a), the Secretary shall, as soon as
practicable after such identification--
``(1) notify the borrower of the borrower's eligibility for
loan discharge under section 437(a); and
``(2) provide the borrower with simple instructions on how
to apply for such loan discharge, including an explanation that
the borrower shall not be required to provide any documentation
of the borrower's disability rating to receive such discharge.
``(c) Data Collection and Report to Congress.--
``(1) In general.--The Secretary shall annually collect and
submit to the Committees on Education and the Workforce and
Veterans' Affairs of the House of Representatives and the
Committees on Health, Education, Labor, and Pensions and
Veterans Affairs of the Senate, data about borrowers applying
for and receiving loan discharges under section 437(a), which
shall be disaggregated in the manner described in paragraph (2)
and include the following:
``(A) The number of applications received under
section 437(a).
``(B) The number of such applications that were
approved.
``(C) The number of loan discharges that were
completed under section 437(a).
``(2) Disaggregation.--The data collected under paragraph
(1) shall be disaggregated--
``(A) by borrowers who applied under this section
for loan discharges under section 437(a);
``(B) by borrowers who received loan discharges as
a result of applying for such discharges under this
section;
``(C) by borrowers who applied for loan discharges
under section 437(a)(2); and
``(D) by borrowers who received loan discharges as
a result of applying for such discharges under section
437(a)(2).
``(d) Notification to Borrowers.--The Secretary shall notify each
borrower whose liability on a loan has been discharged under section
437(a) that the liability on the loan has been so discharged.''.
PART H--PROGRAM INTEGRITY
SEC. 495. REPEAL OF AND PROHIBITION ON STATE AUTHORIZATION REGULATIONS.
(a) Regulations Repealed.--The following regulations relating to
State authorization (including any supplements or revisions to such
regulations) are repealed and shall have no force or effect:
(1) The final regulations published by the Department of
Education in the Federal Register on October 29, 2010 (75 Fed.
Reg. 66832 et seq.).
(2) The final regulations published by the Department of
Education in the Federal Register on December 19, 2016 (81 Fed.
Reg. 92232 et seq).
(b) Prohibition on State Authorization Regulations.--Section 495
(20 U.S.C. 1099a) is amended by striking subsection (b) and inserting
the following:
``(b) Institutional Responsibility.--Each institution of higher
education shall provide evidence to the Secretary that the institution
has authority to operate within each State in which it maintains a
physical location at the time the institution is certified under
subpart 3.
``(c) Treatment of Religious Institutions.--An institution shall be
treated as legally authorized to operate educational programs beyond
secondary education in a State under section 101(a)(2) if the
institution is--
``(1) recognized as a religious institution by the State;
and
``(2) because of the institution's status as a religious
institution, the institution is exempt from any provision of
State law that requires institutions to be authorized by the
State to operate educational programs beyond secondary
education.
``(d) Prohibition on State Authorization Regulations.--The
Secretary shall not promulgate or enforce any regulation or rule not in
effect on the date of enactment of the PROSPER Act for any purpose
under this Act with respect to the State authorization for institutions
of higher education to operate within a State.''.
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.
Section 496 (20 U.S.C. 1099b) is amended--
(1) by striking ``section 102'' each place it appears and
inserting ``section 101'';
(2) in subsection (a)--
(A) in paragraph (2), by amending subparagraph (A)
to read as follows:
``(A) for the purpose of participation in programs
under this Act or other programs administered by the
Department of Education or other Federal agencies, has
a voluntary membership of institutions of higher
education or other entities and has as a principal
purpose the accrediting of institutions of higher
education or programs;'';
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) by striking ``subparagraph
(A)(i)'' and inserting ``subparagraph
(A) or (C)'';
(II) by striking ``separate'' and
inserting ``separately incorporated'';
and
(III) by adding ``or'' at the end;
(ii) by striking ``or'' at the end of
subparagraph (B); and
(iii) by striking subparagraph (C);
(C) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting ``as defined by
the institution'' after ``religious
missions'';
(II) by striking ``, including
distance education or correspondence
courses or programs,''; and
(III) by striking ``and'' at the
end;
(ii) by striking subparagraph (B) and
inserting the following:
``(B) such agency or association demonstrates the
ability to review, evaluate, and assess the quality of
any instruction delivery model or method such agency or
association has or seeks to include within its scope of
recognition, without giving preference to or
differentially treating a particular instruction
delivery model or method offered by an institution of
higher education or program; and
``(C) if such agency or association has or seeks to
include within its scope of recognition the evaluation
of the quality of competency-based education programs,
such agency or association shall, in addition to
meeting the other requirements of this subpart,
demonstrate to the Secretary that, with respect to
competency-based education programs--
``(i) the agency or association's standards
include a process for determining whether an
institution or program requires the
demonstration of competencies that are--
``(I) capable of being validly and
reliably assessed; and
``(II) appropriate in scope and
rigor for the award of the relevant
certificate, degree, or other
recognized educational credential; and
``(ii) the agency or association requires
that an institution or program demonstrate that
it--
``(I) has identified competencies
that meet the requirements of
subclauses (I) and (II) of clause (i);
``(II) requires students to
demonstrate mastery of each relevant
competency in order to earn the
certificate, degree, or credential;
``(III) has the administrative
capacity and expertise that will ensure
the validity and reliability of
assessments of competencies and that
the institution follows good practices
in assessment and measurement;
``(IV) provides sufficient faculty
instruction, educational content,
activities, and resources to enable
students to learn or develop what is
required to demonstrate or attain
mastery of competencies and that such
requirements are consistent with the
claims that the institution makes for
the qualifications of graduates; and
``(V) has defined an academic year
in accordance with section
481(a)(3);'';
(D) by amending paragraph (5) to read as follows:
``(5) the standards for accreditation of the agency or
association assess the institution's success with respect to
student learning and educational outcomes in relation to the
institution's mission, which may include different standards
for different institutions or programs, except that the
standards shall include consideration of student learning and
educational outcomes in relation to expected measures of
student learning and educational outcomes, which at the
agency's or association's discretion are established--
``(A) by the agency or association; or
``(B) by the institution or program, at the
institution or program level, as the case may be, if
the institution or program--
``(i) defines expected student learning
goals and educational outcomes;
``(ii) measures and evaluates student
learning, educational outcomes, and, if
appropriate, other outcomes of the students who
complete their program of study;
``(iii) uses information about student
learning, educational outcomes, and, if
appropriate, other outcomes, to improve the
institution or program; and
``(iv) makes such information available to
appropriate constituencies;''; and
(E) in paragraph (8), by striking ``, upon
request,'';
(3) in subsection (b)--
(A) in the subsection heading, by striking
``Separate'' and inserting ``Separately Incorporated'';
(B) in the matter preceding paragraph (1), by
striking ``separate'' and inserting ``separately
incorporated'';
(C) in paragraph (2), by inserting ``who shall
represent business'' after ``one such public member'';
and
(D) in paragraph (4), by inserting before the
period at the end ``and is maintained separately from
any such entity or organization'';
(4) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``(which may vary based on
institutional risk consistent with policies
promulgated by the agency or association to
determine such risk and interval frequency as
allowed under subsection (p))'' after
``intervals''; and
(ii) by striking ``distance education'' and
inserting ``competency-based education'';
(B) by striking paragraph (5) and redesignating
paragraphs (2), (3), and (4) as paragraphs (3), (4),
and (5), respectively;
(C) by inserting after paragraph (1), the
following:
``(2) develops a mechanism to identify institutions or
programs accredited by the agency or association that may be
experiencing difficulties accomplishing their missions with
respect to the student learning and educational outcome goals
established under subsection (a)(5) and--
``(A) as appropriate, uses information such as
student loan default or repayment rates, retention or
graduation rates, evidence of student learning,
financial data, and other indicators to identify such
institutions;
``(B) not less than annually, evaluates the extent
to which those identified institutions or programs
continue to be in compliance with the agency or
association's standards; and
``(C) as appropriate, requires the institution or
program to address deficiencies and ensure that any
plan to address and remedy deficiencies is successfully
implemented.'';
(D) in paragraph (4)(A), as so redesignated, by
striking ``487(f)'' and inserting ``487(e)'';
(E) by amending paragraph (5), as so redesignated,
to read as follows:
``(5) establishes and applies or maintains policies which
ensure that any substantive change to the educational mission,
program, or programs of an institution after the agency or
association has granted the institution accreditation or
preaccreditation status does not adversely affect the capacity
of the institution to continue to meet the agency's or
association's standards for such accreditation or
preaccreditation status, which shall include policies that--
``(A) require the institution to obtain the
agency's or association's approval of the substantive
change before the agency or association includes the
change in the scope of the institution's accreditation
or preaccreditation status; and
``(B) define substantive change to include, at a
minimum--
``(i) any change in the established mission
or objectives of the institution;
``(ii) any change in the legal status, form
of control, or ownership of the institution;
``(iii) the addition of courses, programs
of instruction, training, or study, or
credentials or degrees that represent a
significant departure from the courses,
programs, or credentials or degrees that were
offered at time the agency or association last
evaluated the institution; or
``(iv) the entering into a contract under
which an institution or organization not
certified to participate programs under title
IV provides a portion of an accredited
institution's educational program that is
greater than 25 percent;'';
(F) in paragraph (7)--
(i) in the matter preceding subparagraph
(A), by inserting ``, on the agency's or
association's website,'' after ``public'';
(ii) in subparagraph (C), by inserting
before the semicolon at the end the following:
``, and a summary of why such action was taken
or such placement was made'';
(G) in paragraph (8), by striking ``and'' at the
end;
(H) in paragraph (9), by striking the period at the
end and inserting a semicolon; and
(I) by adding at the end the following:
``(10) makes publicly available, on the agency or
association's website, a list of the institutions of higher
education accredited by such agency or association, which
includes, with respect to each institution on the list---
``(A) the year accreditation was granted;
``(B) the most recent date of a comprehensive
evaluation of the institution under paragraph (1); and
``(C) the anticipated date of the next such
evaluation; and
``(11) confirms, as a part of the agency's or association's
review for accreditation or reaccreditation, that the
institution's website includes consumer information described
section paragraphs (1) and (2) of section 132(d).'';
(5) in subsection (e)--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--Subject to paragraph (2), the
Secretary''; and
(B) by adding at the end the following:
``(2) Exception.--Paragraph (1) shall not apply in the case
of an institution described in subsection (j).''.
(6) by striking subsection (h) and inserting the following:
``(h) Change of Accrediting Agency or Association.--
``(1) In general.--The Secretary shall not recognize the
accreditation of any otherwise eligible institution of higher
education if the institution is in the process of changing its
accrediting agency or association and is subject to one or more
of the following actions, unless the eligible institution
submits to the Secretary materials demonstrating a reasonable
cause for changing the accrediting agency or association:
``(A) A pending or final action brought by a State
agency to suspend, revoke, withdraw, or terminate the
institution's legal authority to provide postsecondary
education in the State.
``(B) A decision by a recognized accrediting agency
or association to deny accreditation or
preaccreditation to the institution.
``(C) A pending or final action brought by a
recognized accrediting agency or association to
suspend, revoke, withdraw, or terminate the
institution's accreditation or preaccreditation.
``(D) Probation or an equivalent status imposed on
the institution by a recognized accrediting agency or
association.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to restrict the ability of an institution of
higher education not subject to an action described in
paragraph (1) and otherwise in good standing to change
accrediting agencies or associations without the approval of
the Secretary as long as the institution notifies the Secretary
of the change.'';
(7) by striking subsection (k) and inserting the following:
``(k) Religious Institution Rule.--
``(1) In general.--Notwithstanding subsection (j), the
Secretary shall allow an institution that has had its
accreditation withdrawn, revoked, or otherwise terminated, or
has voluntarily withdrawn from an accreditation agency, to
remain certified as an institution of higher education under
section 101 and subpart 3 of this part for a period sufficient
to allow such institution to obtain alternative accreditation,
if the Secretary determines that the withdrawal, revocation, or
termination--
``(A) is related to the religious mission or
affiliation of the institution; and
``(B) is not related to the accreditation criteria
provided for in this section.
``(2) Requirements.--For purposes of this section the
following shall apply:
``(A) The religious mission of an institution may
be reflected in the institution's religious tenets,
beliefs, or teachings, and any policies or decisions
related to such tenets, beliefs, or teachings
(including any policies or decisions concerning
housing, employment, student admission, continuing
enrollment, graduation, curriculum, or self-governance.
``(B) An agency or association's standard fails to
respect an institution's religious mission when the
institution determines that the standard induces,
pressures, or coerces the institution to act contrary
to, or to refrain from acting in support of, any aspect
of its religious mission.'';
(8) in subsection (n)(3), by striking ``distance education
courses or programs'' each place it appears and inserting
``competency-based education programs'';
(9) in subsection (o), by inserting before the period at
the end the following: ``, or with respect to the policies and
procedures of an accreditation agency or association described
in paragraph (2) or (5) of subsection (c) or how the agency or
association carries out such policies and procedures'';
(10) by striking subsections (p) and (q); and
(11) by adding at the end the following:
``(p) Risk-Based or Differentiated Review Processes or
Procedures.--
``(1) In general.--Notwithstanding any other provision of
law (including subsection (a)(4)(A)), an accrediting agency or
association may establish, with the involvement of its
membership, risk-based or differentiated review processes or
procedures for assessing compliance with the accrediting agency
or association's standards, including policies related to
substantive change and award of accreditation statuses, for
institutions of higher education or programs that have
demonstrated exceptional past performance with respect to
meeting the accrediting agency or association's standards.
``(2) Prohibition.--Risk-based or differentiated review
processes or procedures shall not discriminate against, or
otherwise preclude, institutions of higher education based on
institutional sector or category, including an institution of
higher education's tax status.
``(3) Rule of construction.--Nothing in this subsection
shall be construed to permit the Secretary to establish any
criterion that specifies, defines, or prescribes an accrediting
agency or association's risk-based or differentiated review
process or procedure.
``(q) Waiver.--The Secretary shall establish a process through
which an agency or association may seek to have a requirement of this
subpart waived, if such agency or association--
``(1) demonstrates that such waiver is necessary to enable
an institution of higher education or program accredited by the
agency or association to implement innovative practices
intended to--
``(A) reduce administrative burdens to the
institution or program without creating costs for the
taxpayer; or
``(B) improve the delivery of services to students,
improve instruction or learning outcomes, or otherwise
benefit students; and
``(2) describes the terms and conditions that will be
placed upon the program or institution to ensure academic
integrity and quality.''.
SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) Eligibility and Certification Procedures.--Section 498 (20
U.S.C. 1099c) is amended--
(1) in subsection (a)--
(A) by striking ``For purposes of'' and inserting
the following:
``(1) In general.--For purposes of'';
(B) by inserting ``, subject to paragraph (2),''
after ``determine''; and
(C) by adding at the end the following:
``(2) Special rule.--The determination of whether an
institution of higher education is legally authorized to
operate in a State under section 101(a)(2) shall be based
solely on that State's laws.'';
(2) in subsection (b)(5), by striking ``B or D'' and
inserting ``E'';
(3) in subsection (c)--
(A) by redesignating paragraphs (4), (5), and (6)
as paragraphs (6), (7), and (8), respectively;
(B) by striking the subsection designation and all
that follows through the end of paragraph (3) and
inserting the following:
``(c) Financial Responsibility Standards.--(1) The Secretary shall
determine whether an institution has the financial responsibility
required by this title in accordance with paragraph (2).
``(2) An institution shall be determined to be financially
responsible by the Secretary, as required by this title, if the
institution is able to provide the services described in its official
publications and statements, is able to provide the administrative
resources necessary to comply with the requirements of this title, and
meets one of the following conditions:
``(A) Such institution has its liabilities backed by the
full faith and credit of a State, or its equivalent.
``(B) Such institution has a bond credit quality rating of
investment grade or higher from a recognized credit rating
agency.
``(C) Such institution has expendable net assets equal to
not less than one-half of the annual potential liabilities of
such institution to the Secretary for funds under this title,
including loan obligations discharged pursuant to section 437,
and to students for refunds of institutional charges, including
funds under this title, as calculated by an independent
certified public accountant in accordance with generally
accepted auditing standards.
``(D) Such institution establishes, with the support of a
financial statement audited by an independent certified public
accountant in accordance with generally accepted auditing
standards, that the institution has sufficient resources to
ensure against the precipitous closure of the institution,
including the ability to meet all of its financial obligations
(including refunds of institutional charges and repayments to
the Secretary for liabilities and debts incurred in programs
administered by the Secretary).
``(E) Such institution has met criteria, prescribed by the
Secretary by regulation in accordance with paragraph (3),
that--
``(i) establish ratios that demonstrate financial
responsibility in accordance with generally accepted
auditing standards as described in paragraph (7);
``(ii) incorporate the procedures described in
paragraph (4);
``(iii) establish consequences for failure to meet
the criteria described in paragraph (5); and
``(iv) take into account any differences in
generally accepted accounting principles, and the
financial statements required thereunder, that are
applicable to for-profit, public, and nonprofit
institutions.
``(3) The criteria prescribed pursuant to paragraph (2)(E) shall
provide that the Secretary shall--
``(A) not later than 6 months after an institution that is
subject to the requirements of paragraph (2)(E) has submitted
its annual financial statement, provide to such institution a
notification of its preliminary score under such paragraph;
``(B) provide to each such institution a description of the
method used, and complete copies of all the calculations
performed, to determine the institution's score, if such
institution makes a request for such information within 45 days
after receiving the notice under subparagraph (A);
``(C) within 60 days of receipt by an institution of the
information described in subparagraph (B)--
``(i) allow the institution to correct or cure an
administrative, accounting, or recordkeeping error if
the error is not part of a pattern of errors and there
is no evidence of fraud or misconduct related to the
error;
``(ii) if the institution demonstrates that the
Secretary has made errors in its determination of the
initial score or has used non-standard accounting
practices in reaching its determination, notify the
institution that its composite score has been
corrected; and
``(iii) take into consideration any subsequent
change in the institution's overall fiscal health that
would raise the institution's score;
``(D) maintain and preserve at all times the
confidentiality of any review until such score is determined to
be final; and
``(E) make a determination regarding whether the
institution has met the standards of financial responsibility
based on an audited and certified financial statement of the
institution as described in paragraph (7).
``(4) If the Secretary determines, after conducting an initial
review, that the institution has not met at least one of the conditions
described in subparagraphs (A) through (E) of paragraph (2) but has
otherwise met the requirements of such paragraph--
``(A) the Secretary shall request information relating to
such conditions for any affiliated or parent organization,
company, or foundation owning or owned by the institution; and
``(B) if such additional information demonstrates that an
affiliated or parent organization, company, or foundation
owning or owned by the institution meets at least one of the
conditions describe in subparagraphs (A) through (E) of
paragraph (2), the institution shall be determined to be
financially responsible as required by this title.
``(5) The Secretary shall establish policies and procedures to
address an institution's failure to meet the criteria of paragraph (2)
which shall include policies and procedures that--
``(A) require an institution that fails to meet the
criteria for three consecutive years to provide to the
Secretary a financial plan;
``(B) provide for additional oversight and cash monitoring
restrictions, as appropriate;
``(C) allow an institution to submit to the Secretary
third-party financial guarantees that the Secretary determines
are reasonable, such as performance bonds or letters of credit
payable to the Secretary, except that an institution may not be
required to obtain a letter of credit in order to be deemed
financially responsible unless--
``(i) the institution has been deemed not to be a
going concern, as determined by an independent
certified public accountant in accordance with
generally accepted auditing standards;
``(ii) the institution is determined by the
Secretary to be at risk of precipitous closure when the
full financial resources of the institution, including
the value of the institution's expendable endowment,
are considered; or
``(iii) the institution is determined by the
Secretary to be at risk of not meeting all of its
financial obligations, including refunds of
institutional charges and repayments to the Secretary
for liabilities and debts incurred in programs
administered by the Secretary; and
``(D) provide for the removal of all requirements related
to the institution's failure to meet the criteria once the
criteria are met.''; and
(C) in paragraph (7), as so redesignated, by
striking ``paragraphs (2) and (3)(C)'' and inserting
``paragraph (2)'';
(4) in subsection (g)(3)--
(A) by striking ``section 102(a)(1)(C)'' and
inserting ``section 102(a)(1)''; and
(B) by striking ``part B'' and inserting ``part D
or E'';
(5) in subsection (h)(2), by striking ``18'' and inserting
``36'';
(6) in subsection (i)(1), by striking ``section 102 (other
than the requirements in subsections (b)(5) and (c)(3))'' and
inserting ``sections 101 (other than the requirements in
subsections (b)(1)(A) and (b)(2)) and 102'';
(7) in subsection (j)(1), by striking ``meet the
requirements of sections 102(b)(1)(E) and 102(c)(1)(C)'' and
inserting ``meet the requirements to be considered an
institution of higher education under sections 101(b)(1)(A) and
101(b)(2)''; and
(8) in subsection (k)--
(A) in paragraph (1), by striking ``487(f)'' and
inserting ``487(e)''; and
(B) in paragraph (2)(A), by striking ``meet the
requirements of sections 102(b)(1)(E) and
102(c)(1)(C)'' and inserting ``meet the requirements to
be considered an institution of higher education under
sections 101(b)(1)(A) and 101(b)(2)''.
(b) Program Review and Data.--Section 498A (20 U.S.C. 1099c-1) is
amended--
(1) in subsection (a)(2)--
(A) by striking ``part B of'' both places it
appears;
(B) in subparagraph (A), by inserting before the
semicolon at the end the following: ``, or after the
transition period described in section 481B(e)(3),
institutions in which 25 percent or more of the
educational programs have a loan repayment rate
(defined in section 481B(c)) for the most recent fiscal
year of less than 50 percent'';
(C) in subparagraph (B), by inserting before the
semicolon at the end the following: ``, except that
this subparagraph shall not apply after the transition
period described in section 481B(e)(3)''; and
(D) in subparagraph (C)--
(i) by inserting ``Federal ONE Loan
volume,'' after ``Stafford/Ford Loan volume'';
and
(ii) by inserting ``Federal ONE Loan
program,'' after ``Stafford/Ford Loan
program'';
(2) in subsection (b)--
(A) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively;
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) as practicable, provide a written explanation to the
institution of higher education detailing the Secretary's
reasons for initiating the program review which, if applicable,
shall include references to specific criteria under subsection
(a)(2);''; and
(C) in paragraph (9), as so redesignated--
(i) by striking ``paragraphs (6) and (7)''
and inserting ``paragraphs (7) and (8)''; and
(ii) by striking ``paragraph (5)'' and
inserting ``paragraph (6)''; and
(3) by adding at the end the following new subsection:
``(f) Time Limit on Program Review Activities.--In conducting,
responding to, and concluding program review activities, the Secretary
shall--
``(1) provide to the institution the initial report finding
not later than 90 days after concluding an initial site visit;
``(2) upon each receipt of an institution's response during
a program review inquiry, respond in a substantive manner
within 90 days;
``(3) upon each receipt of an institution's written
response to a draft final program review report, provide the
final program review report and accompanying enforcement
actions, if any, within 90 days; and
``(4) conclude the entire program review process not later
than 2 years after the initiation of a program review, unless
the Secretary determines that such a review is sufficiently
complex and cannot reasonably be concluded before the
expiration of such 2-year period, in which case the Secretary
shall promptly notify the institution of the reasons for such
delay and provide an anticipated date for conclusion of the
review.''.
(c) Review of Regulations.--Section 498B(b) (20 U.S.C. 1099c-2(b))
is amended by striking ``section 102(a)(1)(C)'' and inserting
``102(a)(1)''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. HISPANIC-SERVING INSTITUTIONS.
Part A of title V (20 U.S.C. 1101 et seq.) is amended--
(1) in section 502(a)--
(A) in paragraph (1), by striking ``institution for
instruction'' and inserting ``institution of higher
education for instruction'';
(B) in paragraph (2)(A)--
(i) by redesignating clauses (v) and (vi)
as clauses (vi) and (v), respectively;
(ii) in clause (v) (as so redesignated), by
inserting ``(as defined in section
103(20)(A))'' after ``State''; and
(iii) in clause (vi) (as so redesignated),
by striking ``and'' at the end; and
(C) in paragraph (2)--
(i) by striking the period at the end of
subparagraph (B) and inserting ``; and''; and
(ii) by adding at the end the following:
``(C) except as provided in section 522(b), an
institution that has a completion rate of at least 25
percent that is calculated by--
``(i) counting a student as completed if
that student graduated within 150 percent of
the normal time for completion; or
``(ii) counting a student as completed if
that student enrolled into another program at
an institution for which the previous program
provided substantial preparation within 150
percent of normal time for completion.'';
(2) in section 503--
(A) in subsection (b)--
(i) in paragraph (5), by striking
``counseling, and'' and inserting ``counseling,
advising, and'';
(ii) in paragraph (7), by striking ``funds
management'' and inserting ``funds and
administrative management'';
(iii) in paragraph (11), by striking
``Creating'' and all that follows through
``technologies,'' and inserting ``Innovative
learning models and creating or improving
facilities for Internet or other innovative
technologies,''; and
(iv) by redesignating paragraph (16) as
paragraph (20) and inserting after paragraph
(15) the following:
``(16) The development, coordination, implementation, or
improvement of career and technical education programs (as
defined in section 135 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2355)).
``(17) Alignment and integration of career and technical
education programs with programs of study leading to a
bachelor's degree, graduate degree, or professional degree.
``(18) Developing or expanding access to dual or concurrent
enrollment programs and early college high school programs.
``(19) Pay for success initiatives that improve time to
completion and increase graduation rates.''; and
(B) in subsection (c), by adding at the end the
following:
``(4) Scholarship.--An institution that uses grant funds
provided under this part to establish or increase an endowment
fund may use the income from such endowment fund to provide
scholarships to students for the purposes of attending such
institution, subject to the limitation in section
331(c)(3)(B)(i).'';
(3) in section 504, by striking subsection (a) and
inserting the following:
``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. Any funds
awarded under this part that are not expended or used, before the date
that is 10 years after the date on which the grant was awarded, for the
purposes for which the funds were paid shall be repaid to the
Treasury.''; and
(4) in section 505, by striking ``this title'' each place
such term appears and inserting ``this part''.
SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS.
Part B of title V (20 U.S.C. 1102 et seq.) is amended--
(1) in section 513--
(A) by striking paragraph (1) and inserting the
following:
``(1) The activities described in (1) through (4), (11),
and (19) of section 503(b).'';
(B) by striking paragraphs (2) and (3); and
(C) by redesignating paragraphs (4) through (8) as
paragraphs (2) through (6), respectively; and
(D) in paragraph (4) (as so redesignated), by
striking ``Creating'' and all that follows through
``technologies,'' and inserting ``Innovative learning
models and creating or improving facilities for
Internet or other innovative technologies,''; and
(2) in section 514--
(A) by striking subsection (b) and inserting the
following:
``(b) Duration.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. Any funds
awarded under this part that are not expended or used for the purposes
for which the funds were paid within 10 years following the date on
which the grant was awarded shall be repaid to the Treasury.''; and
(B) by adding at the end the following:
``(d) Special Rule.--No Hispanic-serving institution that is
eligible for and receives funds under this part may receive funds under
part A or B of title III during the period for which funds under this
part are awarded.''.
SEC. 503. GENERAL PROVISIONS.
Part C of title V (20 U.S.C. 1103 et seq.) is amended--
(1) in section 521(c)(7)--
(A) by striking subparagraph (C);
(B) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(C) in subparagraph (D), as so redesignated, by
striking ``subparagraph (D)'' and inserting
``subparagraph (C)'';
(2) in section 522(b)--
(A) in the subsection heading, by inserting ``;
completion rates'' after ``expenditures'';
(B) in paragraph (1), by inserting ``or
502(a)(2)(C)'' after ``502(a)(2)(A)(ii)''; and
(C) in paragraph (2)--
(i) in the paragraph heading, by inserting
``and completion rates'' after
``Expenditures'';
(ii) in the matter preceding subparagraph
(A), by inserting ``or 502(a)(2)(C)'' after
``502(a)(2)(A)(ii)''; and
(iii) in subparagraph (A), by inserting
``or section 502(a)(2)(C)'' after
``502(a)(2)(A)'';
(3) in section 524(c), by striking ``section 505'' and
inserting ``section 504''; and
(4) in section 528--
(A) in subsection (a), by striking ``parts A and
C'' and all that follows through the period at the end
and inserting ``parts A and C, $107,795,000 for each of
fiscal years 2019 through 2024.''; and
(B) in subsection (b), by striking ``part B'' and
all that follows through the period at the end and
inserting ``part B, $9,671,000 for each of fiscal years
2019 through 2024.''.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
(a) Graduate and Undergraduate Language and Area Centers and
Programs.--Section 602 (20 U.S.C. 1122) is amended--
(1) in subsection (a)(4)(F), by inserting ``(C),'' after
``(B),''; and
(2) in subsection (e)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and realigning
such subparagraphs so as to be indented 4 ems from the
left margin;
(B) by striking ``(e) Application.--Each
institution'' and inserting the following:
``(e) Application.--
``(1) Submission; contents.--Each institution''; and
(C) by adding at the end the following new
paragraph:
``(2) Approval.--The Secretary may approve an application
for a grant if an institution, in its application, provides
adequate assurances that it will comply with paragraph (1)(A).
The Secretary shall use the requirement of paragraph (1)(A) as
part of the application evaluation, review, and approval
process when determining grant recipients for initial funding
and continuation awards.''.
(b) Discontinuation of Certain Programs.--Part A of title VI (20
U.S.C. 1121 et seq.) is amended--
(1) by striking section 604;
(2) by striking section 606;
(3) by striking section 609; and
(4) by striking section 610.
(c) Conforming Amendment.--Part A of title VI (20 U.S.C. 1121 et
seq.) is further amended by redesignating sections 605, 607, and 608 as
sections 604, 605, and 606, respectively.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
(a) Centers for International Business Education.--Section 612 (20
U.S.C. 1130-1) is amended--
(1) in subsection (f)(3), by inserting ``and a wide range
of views'' after ``diverse perspectives''; and
(2) by adding at the end the following new subsection:
``(g) Approval.--The Secretary may approve an application for a
grant if an institution, in its application, provides adequate
assurances that it will comply with subsection (f)(3). The Secretary
shall use the requirement of subsection (f)(3) as part of the
application evaluation, review, and approval process when determining
grant recipients for initial funding and continuation awards.''.
(b) Discontinuation of Certain Programs.--Part B of title VI (20
U.S.C. 1130 et seq.) is amended by striking sections 613 and 614.
SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTITUTE FOR INTERNATIONAL
PUBLIC POLICY.
Part C of title VI (20 U.S.C. 1131 et seq.) is repealed.
SEC. 604. GENERAL PROVISIONS.
(a) Definitions.--Section 631(a) (20 U.S.C. 1132(a)) is amended--
(1) by striking paragraphs (5) and (9);
(2) in paragraph (8), by inserting ``and'' after the
semicolon at the end; and
(3) by redesignating paragraphs (6), (7), (8), and (10) as
paragraphs (5), (6), (7), and (8), respectively.
(b) Special Rule.--Section 632(2) (20 U.S.C. 1132-1(2)) is amended
by inserting ``substantial'' before ``need''.
(c) Reports.--Section 636 (20 U.S.C. 1132-5) is amended--
(1) by inserting ``(a) Biennial Report on Areas of National
Need.--'' before ``The Secretary''; and
(2) by adding at the end the following new subsection:
``(b) Annual Report on Compliance With Diverse Perspectives and a
Wide Range of Views Requirement.--Not later than 180 days after the
date of the enactment of this subsection, and annually thereafter, the
Secretary shall submit to the authorizing committees a report that
identifies the efforts taken to ensure recipients' compliance with the
requirements under this title relating to the `diverse perspectives and
a wide range of views' requirement, including any technical assistance
the Department has provided, any regulatory guidance the Department has
issued, and any monitoring the Department has conducted. Such report
shall be made available to the public.''.
(d) Repeal of Science and Technology Advanced Foreign Language
Education Grant Program.--Section 637 (20 U.S.C. 1132-6) is repealed.
(e) Reporting by Institutions.--Section 638(b) (20 U.S.C. 1132-
7(b)) is amended to read as follows:
``(b) Data Required.--
``(1) In general.--Except as provided in paragraph (5), the
Secretary shall require an institution of higher education
referred to in subsection (a) to file a disclosure report under
paragraph (2) with the Secretary on January 31 or July 31,
whichever is sooner, with respect to the date on which such
institution received a contribution--
``(A) less than 7 months from such date; and
``(B) greater than 30 days from such date.
``(2) Contents of report.--Each report to the Secretary
required by this section shall contain the following
information with respect to the institution of higher education
filing the report:
``(A) For gifts received from, or contracts entered
into with a foreign source other than a foreign
government, the following information:
``(i) The aggregate dollar amount of such
gifts and contracts attributable to each
country, including the fair market value of the
services of staff members, textbooks, and other
in-kind gifts.
``(ii) The legal name of the entity
providing any such gift or contract.
``(iii) The country to which the gift is
attributable.
``(B) For gifts received from, or contracts entered
into with, a foreign government, the aggregate dollar
amount of such gifts and contracts received from each
foreign government and the legal name of the entity
providing any such gift or contract.
``(C) In the case of an institution of higher
education that is owned or controlled by a foreign
source--
``(i) the identity of the foreign source;
``(ii) the date on which the foreign source
assumed ownership or control of the
institution; and
``(iii) any changes in program or structure
resulting from the change in ownership or
control.
``(3) Additional disclosures for restricted and conditional
gifts.--Notwithstanding paragraph (1), when an institution of
higher education receives a restricted or conditional gift or
contract from a foreign source, the institution shall disclose
the following:
``(A) In the case of gifts received from, or
contracts entered into with, a foreign source other
than a foreign government, the amount, the date, and a
description of such conditions or restrictions.
``(B) The country to which the gift is
attributable.
``(C) In the case of gifts received from, or
contracts entered into with, a foreign government, the
amount, the date, a description of such conditions or
restrictions, and the name of the foreign government.
``(4) Attribution of gifts.--For purposes of this
subsection, the country to which a gift is attributable is--
``(A) the country of citizenship; or
``(B) if the information described in subparagraph
(A) is not known--
``(i) the principal residence for a foreign
source who is a natural person; or
``(ii) the principal place of business and
country of incorporation for a foreign source
that is a legal entity.
``(5) Relation to other reporting requirements.--
``(A) State requirements.--If an institution
described under subsection (a) is located within a
State that has enacted requirements for public
disclosure of gifts from, or contracts with, a foreign
source that are substantially similar to the
requirements of this section, as determined by the
Secretary, a copy of the disclosure report filed with
the State may be filed with the Secretary in lieu of a
report required under paragraph (1).
``(B) Assurances.--With respect to an institution
that submits a copy of a disclosure report pursuant to
subparagraph (A), the State in which such institution
is located shall provide to the Secretary such
assurances as the Secretary may require to establish
that the institution has met the requirements for
public disclosure under the laws of such State.
``(C) Use of other federal reports.--If an
institution receives a gift from, or enters into a
contract with, a foreign source, where any other
Federal law or regulation requires a report containing
requirements substantially similar to the requirements
under this section, as determined by the Secretary, a
copy of the report may be filed with the Secretary in
lieu of a report required under subsection (b).
``(6) Public inspection.--A disclosure report required by
this section shall be--
``(A) available as public records open to
inspection and copying during business hours;
``(B) available electronically; and
``(C) made available under subparagraphs (A) and
(B) not later than 30 days after the Secretary receives
such report.
``(7) Enforcement.--
``(A) Compel compliance.--Whenever it appears that
an institution has failed to comply with the
requirements of this section, including any rule or
regulation promulgated under this section, a civil
action may be brought by the Attorney General, at the
request of the Secretary, in an appropriate district
court of the United States, or the appropriate United
States court of any territory or other place subject to
the jurisdiction of the United States, to request such
court to compel compliance with the requirements of
this section.
``(B) Costs.--For knowing or willful failure to
comply with the requirements of this section, including
any rule or regulation promulgated thereunder, an
institution shall pay to the Treasury of the United
States the full costs to the United States of obtaining
compliance, including all associated costs of
investigation and enforcement.
``(8) Definitions.--In this section:
``(A) Contract.--The term `contract' means any
agreement for the acquisition by purchase, lease, gift,
or barter of property or services by the foreign
source, for the direct benefit or use of either of the
parties.
``(B) Foreign source.--The term `foreign source'
means--
``(i) a foreign government, including an
agency of a foreign government;
``(ii) a legal entity, governmental or
otherwise, created solely under the laws of a
foreign state or states;
``(iii) an individual who is not a citizen
or a national of the United States or a trust
territory or protectorate thereof; and
``(iv) an agent, including a subsidiary or
affiliate of a foreign legal entity, acting on
behalf of a foreign source.
``(C) Gift.--The term `gift' means any gift of
money, property, human resources, or payment of any
staff.
``(D) Restricted or conditional.--The term
`restricted or conditional', with respect to an
endowment, gift, grant, contract, award, present, or
property of any kind means including as a condition on
such endowment, gift, grant, contract, award, present,
or property provisions regarding--
``(i) the employment, assignment, or
termination of faculty;
``(ii) the establishment of departments,
centers, research or lecture programs,
institutes, instructional programs, or new
faculty positions;
``(iii) the selection or admission of
students; or
``(iv) the award of grants, loans,
scholarships, fellowships, or other forms of
financial aid restricted to students of a
specified country, religion, sex, ethnic
origin, or political opinion.''.
(f) Redesignations.--Part D of title VI (20 U.S.C. 1132 et seq.) is
amended--
(1) by redesignating such part as part C; and
(2) by redesignating sections 631, 632, 633, 634, 635, 636,
and 638 as sections 621, 622, 623, 624, 625, 626, and 627,
respectively.
(g) Continuation Awards.--Part C of title VI (20 U.S.C. 1131 et
seq.), as so redesignated by subsection (f)(1) of this section, is
amended by adding at the end the following new sections:
``SEC. 628. CONTINUATION AWARDS.
``The Secretary shall make continuation awards under this title for
the second and succeeding years of a grant only after determining that
the recipient is making satisfactory progress in carrying out the
grant.
``SEC. 629. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this title
$61,525,000 for each of fiscal years 2019 through 2024.''.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 701. GRADUATE EDUCATION PROGRAMS.
(a) Repeal of Jacob K. Javits Fellowship Program.--Subpart 1 of
part A of title VII (20 U.S.C. 1134 et seq.) is repealed.
(b) Repeal of Thurgood Marshall Legal Educational Opportunity
Program.--Subpart 3 of part A of title VII (20 U.S.C. 1136) is
repealed.
(c) Authorization of Appropriations for Graduate Assistance in
Areas of National Need.--Section 716 (20 U.S.C. 1135e) is amended
striking ``$35,000,000'' and all that follows through the period at the
end and inserting ``$28,047,000 for each of fiscal years 2019 through
2024.''.
(d) Redesignations.--Part A of title VII (20 U.S.C. 1134 et seq.)
is amended--
(1) by redesignating subparts 2, 4, and 5 as subparts 1, 2,
and 3 respectively;
(2) by redesignating sections 711 through 716 as sections
701 through 706, respectively;
(3) by redesignating sections 723 through 725 as sections
711 through 713, respectively; and
(4) by redesignating section 731 as section 721.
(e) Amendment of Cross References.--Part A of title VII (20 U.S.C.
1134 et seq.) is amended--
(1) in section 703(b)(8), as so redesignated, by striking
``section 715'' and inserting ``section 705'';
(2) in section 704(c)), as so redesignated--
(A) by striking ``section 715(a)'' and inserting
``section 705(a)''; and
(B) by striking ``section 713(b)(2)'' and inserting
``section 703(b)(2)'';
(3) in section 711(e), as so redesignated, by striking
``724'' and inserting ``712'';
(4) in section 712(e), as so redesignated, by striking
``723'' and inserting ``711'';
(5) in section 713, as so redesignated--
(A) in subsection (a), by striking ``section 723''
and all that follows through the period at the end and
inserting ``section 711, $7,500,000 for fiscal year
2019 and each of the five succeeding fiscal years.'';
and
(B) in subsection (b), by striking ``section 724''
and inserting ``section 712''; and
(6) in section 721, as so redesignated--
(A) in the section heading, by striking ``through
4'' and inserting ``and 2'';
(B) by striking ``subparts 1 through 4'' each place
such term appears and inserting ``subparts 1 and 2'';
(C) in subsection (c)--
(i) by striking ``section 703(b) or
715(a)'' and inserting ``section 705(a)''; and
(ii) by striking ``subparts 1 or 2,
respectively,'' and inserting ``subpart 1'';
and
(D) in subsection (d), by striking ``subpart 1, 2,
3, or 4'' and inserting ``subpart 1 or 2''.
SEC. 702. REPEAL OF FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.
Part B of title VII (20 U.S.C. 1138 et seq.) is repealed.
SEC. 703. PROGRAMS FOR STUDENTS WITH DISABILITIES.
(a) Redesignations.--
(1) Subpart.--Part D of title VII (20 U.S.C. 1140 et seq.)
is amended by striking subparts 1 and 3 and redesignating
subparts 2 and 4 as subparts 1 and 2, respectively.
(2) Part.--Part D of title VII (20 U.S.C. 1140 et seq.), as
amended by paragraph (1), is redesignated as part B of such
Act.
(b) Model Transition Programs; Coordinating Center.--
(1) Purpose.--Section 766 (20 U.S.C. 1140f) is redesignated
as section 731 of such Act.
(2) Model comprehensive transition and postsecondary
programs.--Section 767 (20 U.S.C. 1140g) is amended--
(A) by redesignating such section as section 732 of
such Act;
(B) in subsection (a)(1)--
(i) by striking ``section 769(a)'' and
inserting ``section 735(a)''; and
(ii) by striking ``institutions of higher
education (or consortia of institutions of
higher education), to enable the institutions
or consortia'' and inserting ``eligible
applicants, to enable the eligible
applicants'';
(C) by striking subsection (b) and inserting the
following:
``(b) Application.--An eligible applicant desiring a grant under
this section shall submit to the Secretary, at such time and in such
manner as the Secretary may require, an application that--
``(1) describes how the model program to be operated by the
eligible applicant with grant funds received under this section
will meet the requirements of subsection (d);
``(2) describes how the model program proposed to be
operated is based on the demonstrated needs of students with
intellectual disabilities served by the eligible applicant and
potential employers;
``(3) describes how the model program proposed to be
operated will coordinate with other Federal, State, and local
programs serving students with intellectual disabilities,
including programs funded under the Rehabilitation Act of 1973
(29 U.S.C. 701 et seq.);
``(4) describes how the model program will be sustained
once the grant received under this section ends;
``(5) if applicable, describes how the eligible applicant
will meet the preferences described in subsection (c)(3); and
``(6) demonstrates the ability of the eligible applicant to
meet the requirement under subsection (e).'';
(D) in subsection (c)(3)--
(i) in subparagraph (B), by striking
``institution of higher education'' and
inserting ``eligible applicant''; and
(ii) in subparagraph (C), by striking
``students attending the institution of higher
education'' and inserting ``the eligible
applicant's students'';
(E) in subsection (d)--
(i) in the matter preceding paragraph (1),
by striking ``An institution of higher
education (or consortium)'' and inserting ``An
eligible applicant'';
(ii) in paragraph (2), by striking
``institution of higher education's'' and
inserting ``eligible applicant's'';
(iii) in paragraph (3)(D), by striking
``that lead to gainful employment'';
(iv) in paragraph (5), by striking
``section 777(b)'' and inserting ``section
734'';
(v) in paragraph (6), by inserting ``and''
after the semicolon at the end;
(vi) by striking paragraph (7); and
(vii) by redesignating paragraph (8) as
paragraph (7);
(F) in subsection (e), by striking ``An institution
of higher education (or consortium)'' and inserting
``An eligible applicant'';
(G) in subsection (f), by striking ``Not later than
five years after the date of the first grant awarded
under this section'' and inserting ``Not less often
than once every 5 years''; and
(H) by adding at the end the following new
subsection:
``(g) Definition.--For purposes of this subpart, the term `eligible
applicant' means an institution of higher education or a consortium of
institutions of higher education.''.
(3) Redesignations.--Sections 768 and 769 (20 U.S.C. 1140i)
are redesignated as sections 733 and 735, respectively.
(4) Coordinating center.--Subpart 1 of part D of title VII,
as so redesignated by subsection (a)(1), is amended by
inserting after section 733 (as so redesignated by paragraph
(3)) the following new section:
``SEC. 734. COORDINATING CENTER.
``(a) Purpose.--It is the purpose of this section to provide
technical assistance and information on best and promising practices to
eligible applicants awarded grants under section 732.
``(b) Coordinating Center.--
``(1) Definition of eligible entity.--In this section, the
term `eligible entity' means an entity, or a partnership of
entities, that has demonstrated expertise in the fields of--
``(A) higher education;
``(B) the education of students with intellectual
disabilities;
``(C) the development of comprehensive transition
and postsecondary programs for students with
intellectual disabilities; and
``(D) evaluation and technical assistance.
``(2) In general.--From amounts appropriated under section
735, the Secretary shall enter into a cooperative agreement, on
a competitive basis, with an eligible entity for the purpose of
establishing a coordinating center for institutions of higher
education that offer inclusive comprehensive transition and
postsecondary programs for students with intellectual
disabilities, including eligible applicants receiving grants
under section 732, to provide--
``(A) recommendations related to the development of
standards for such programs;
``(B) technical assistance for such programs; and
``(C) evaluations for such programs.
``(3) Administration.--The program under this section shall
be administered by the office in the Department that
administers other postsecondary education programs.
``(4) Duration.--A cooperative agreement entered into
pursuant to this section shall have a term of 5 years.
``(5) Requirements of cooperative agreement.--The
cooperative agreement entered into pursuant to this section
shall provide that the eligible entity entering into such
agreement shall establish and maintain a coordinating center
that shall--
``(A) serve as the technical assistance entity for
all comprehensive transition and postsecondary programs
for students with intellectual disabilities;
``(B) provide technical assistance regarding the
development, evaluation, and continuous improvement of
such programs;
``(C) develop an evaluation protocol for such
programs that includes qualitative and quantitative
methodologies for measuring student outcomes and
program strengths in the areas of academic enrichment,
socialization, independent living, and competitive or
supported employment;
``(D) assist recipients of grants under section 732
in efforts to award a meaningful credential to students
with intellectual disabilities upon the completion of
such programs, which credential shall take into
consideration unique State factors;
``(E) develop recommendations for the necessary
components of such programs, such as--
``(i) academic, vocational, social, and
independent living skills;
``(ii) evaluation of student progress;
``(iii) program administration and
evaluation;
``(iv) student eligibility; and
``(v) issues regarding the equivalency of a
student's participation in such programs to
semester, trimester, quarter, credit, or clock
hours at an institution of higher education, as
the case may be;
``(F) analyze possible funding sources for such
programs and provide recommendations to such programs
regarding potential funding sources;
``(G) develop model memoranda of agreement for use
between or among institutions of higher education and
State and local agencies providing funding for such
programs;
``(H) develop mechanisms for regular communication,
outreach, and dissemination of information about
comprehensive transition and postsecondary programs for
students with intellectual disabilities under section
732 between or among such programs and to families and
prospective students;
``(I) host a meeting of all recipients of grants
under section 732 not less often than once every 3
years; and
``(J) convene a workgroup to develop and recommend
model criteria, standards, and components of such
programs as described in subparagraph (E) that are
appropriate for the development of accreditation
standards, which workgroup shall include--
``(i) an expert in higher education;
``(ii) an expert in special education;
``(iii) a representative of a disability
organization that represents students with
intellectual disabilities;
``(iv) a representative from the National
Advisory Committee on Institutional Quality and
Integrity; and
``(v) a representative of a regional or
national accreditation agency or association.
``(6) Report.--Not less often than once every 5 years, the
coordinating center shall report to the Secretary, the
authorizing committees, and the National Advisory Committee on
Institutional Quality and Integrity on the recommendations of
the workgroup described in paragraph (5)(J).''.
(5) Authorization of appropriations.--Section 735, as so
redesignated by paragraph (3), is amended--
(A) in subsection (a), by striking ``such sums as
may be necessary for fiscal year 2009'' and inserting
``$11,800,000 for fiscal year 2019''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Reservation of Funds.--For any fiscal year for which
appropriations are made for this subpart, the Secretary--
``(1) shall reserve funds to enter into a cooperative
agreement to establish the coordinating center under section
734, in an amount that is equal to--
``(A) not less than $240,000 for any year in which
the amount appropriated to carry out this subpart is
$8,000,000 or less; or
``(B) equal to 3 percent of the amount appropriated
to carry out this subpart for any year in which such
amount appropriated is greater than $8,000,000; and
``(2) may reserve funds to award the grant, contract, or
cooperative agreement described in section 737.''.
(c) National Technical Assistance Center.--
(1) Subpart heading.--The subpart heading for subpart 2 of
part D of title VII (20 U.S.C. 1140p et seq.), as so
redesignated by subsection (a)(1), is amended by striking ``;
Coordinating Center''.
(2) Purpose.--Section 776 (20 U.S.C. 1140p) is amended--
(A) by redesignating such section as section 736 of
such Act; and
(B) by striking ``grants, contracts, or cooperative
agreements under subpart 1, 2, or 3'' and inserting
``grants or a cooperative agreement under subpart 1''.
(3) National technical assistance.--Section 777 (20 U.S.C.
1140q) is amended--
(A) by redesignating such section as section 737 of
such Act;
(B) in the section heading, by striking ``;
coordinating center'';
(C) in subsection (a)(1), by striking
``appropriated under section 778'' and inserting
``reserved under section 735(b)(2)'';
(D) by amending subsection (a)(3)(D) to read as
follows:
``(D) the subject supported by the grants or
cooperative agreement authorized in subpart 1.'';
(E) in subsection (a)(4)(A)(ii), by striking
``subparts 2, 4, and 5'' and inserting ``subparts 2 and
5''; and
(F) in subsection (a)(4)(B), by striking ``grants,
contracts, or cooperative agreements authorized under
subparts 1, 2, and 3'' each place it appears and
inserting ``grants and cooperative agreement authorized
under subpart 1''.
(4) Authorization of appropriations.--Section 778 (20
U.S.C. 1140r) is repealed.
SEC. 704. REPEAL OF COLLEGE ACCESS CHALLENGE GRANT PROGRAM.
Part E of title VII (20 U.S.C. 1141) is repealed.
TITLE VIII--OTHER REPEALS
SEC. 801. REPEAL OF ADDITIONAL PROGRAMS.
(a) Higher Education Act of 1965.--Title VIII of the Higher
Education Act of 1965 (20 U.S.C. 1161a et seq.) is repealed.
(b) Higher Education Opportunity Act.--The Higher Education
Opportunity Act (Public Law 110-315; 122 Stat. 3078 et seq.) is amended
by repealing sections 802 and 803.
(c) Higher Education Amendments of 1998.--The Higher Education
Amendments of 1998 (Public Law 105-244; 112 Stat. 1581 et seq.) is
amended by repealing sections 821 and 841.
(d) Higher Education Amendments of 1992.--The Higher Education
Amendments of 1992 (Public Law 102-325; 106 Stat. 448 et seq.) is
amended by repealing section 1543.
(e) United States Institute of Peace Act.--The United States
Institute of Peace Act (22 U.S.C. 4601 et seq.) is repealed.
TITLE IX--AMENDMENTS TO OTHER LAWS
PART A--EDUCATION OF THE DEAF ACT OF 1986
SEC. 901. EDUCATION OF THE DEAF ACT OF 1986.
(a) Board of Trustees.--Section 103(a)(1) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``twenty-one'' and inserting ``twenty-three'';
(2) in subparagraph (A)--
(A) by striking ``three public'' and inserting
``four public'';
(B) by striking ``one shall'' and all that follows
through ``, and'' and inserting ``two shall be United
States Senators, of whom one shall be appointed by the
Majority Leader of the Senate and one shall be
appointed by the Minority Leader of the Senate, and'';
and
(C) by striking ``appointed by the Speaker of the
House of Representatives'' and inserting ``, of whom
one shall be appointed by the Speaker of the House of
Representatives and one shall be appointed by the
Minority Leader of the House of Representatives''; and
(3) in subparagraph (B), by striking ``eighteen'' and
inserting ``nineteen''.
(b) Laurent Clerc National Deaf Education Center.--Section
104(b)(5) of the Education of the Deaf Act of 1986 (20 U.S.C.
4304(b)(5)) is amended to read as follows:
``(5) The University, for purposes of the elementary and
secondary education programs carried out by the Clerc Center,
shall--
``(A)(i)(I) provide an assurance to the Secretary
that it has adopted and is implementing challenging
State academic standards that meet the requirements of
section 1111(b)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(1));
``(II) demonstrate to the Secretary that the
University is implementing a set of high-quality
student academic assessments in mathematics, reading or
language arts, and science, and any other subjects
chosen by the University, that meet the requirements of
section 1111(b)(2) of such Act (20 U.S.C. 6311(b)(2));
and
``(III) demonstrate to the Secretary that the
University is implementing an accountability system
consistent with section 1111(c) of such Act (20 U.S.C.
6311(c)); or
``(ii)(I) select the challenging State academic
standards and State academic assessments of a State,
adopted and implemented, as appropriate, pursuant to
paragraphs (1) and (2) of section 1111(b) of such Act
(20 U.S.C. 6311(b)); and
``(II) adopt the accountability system, consistent
with section 1111(c) of such Act (20 U.S.C. 6311(c)),
of such State; and
``(B) publicly report, except in a case in which
such reporting would not yield statistically reliable
information or would reveal personally identifiable
information about an individual student--
``(i) the results of the academic
assessments implemented under subparagraph (A);
and
``(ii) the results of the annual evaluation
of the programs at the Clerc Center, as
determined using the accountability system
adopted under subparagraph (A).''.
(c) Repeal of Cultural Experiences Grants Program.--Part C of title
I of the Education of the Deaf Act of 1986 (20 U.S.C. 4341) is
repealed.
(d) Repeal of Authorization of Appropriations for Monitoring and
Evaluation.--Subsection (c) of section 205 of the Education of the Deaf
Act of 1986 (20 U.S.C. 4355(c)) is repealed.
(e) Federal Endowment Funds.--Section 207 of the Education of the
Deaf Act of 1986 (20 U.S.C. 4357) is amended--
(1) in the heading of subsection (b), by striking ``Federal
Payments'' and inserting ``Payments'';
(2) in subsection (b), by striking paragraphs (1) and (2)
and inserting the following:
``(1) From amounts provided by the Secretary from funds
appropriated under subsections (a) and (b) of section 212,
respectively, the University and NTID may make payments, in
accordance with this section, to the Federal endowment fund of
the institution involved.
``(2) Subject to paragraph (3), in any fiscal year, the
total amount of payments made under paragraph (1) to the
Federal endowment fund may not exceed the total amount
contributed to the fund from non-Federal sources during such
fiscal year.
``(3) For purposes of paragraph (2), the transfer of funds
by an institution involved to the Federal endowment fund from
another endowment fund of such institution shall not be
considered a contribution from a non-Federal source.'';
(3) in subsection (e), by striking ``Federal payment'' and
inserting ``payment under subsection (b)'';
(4) in subsection (f), in the matter preceding paragraph
(1), by striking ``Federal payments'' and inserting
``payments'';
(5) in subsection (g)(1), by striking ``Federal payments to
such fund'' and inserting ``payments made under subsection
(b)'';
(6) by repealing subsection (h); and
(7) by redesignating subsection (i) as subsection (h).
(f) Repeal of National Study.--Section 211 of the Education of the
Deaf Act of 1986 (20 U.S.C. 4360) is repealed.
(g) Authorization of Appropriations.--Section 212 of the Education
of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
(1) in subsection (a), by striking ``such sums as may be
necessary for each of the fiscal years 2009 through 2014'' and
inserting ``$121,275,000 for each of the fiscal years 2019
through 2024''; and
(2) in subsection (b), by striking ``such sums as may be
necessary for each of the fiscal years 2009 through 2014'' and
inserting ``$70,016,000 for each of the fiscal years 2019
through 2024''.
(h) Technical Amendments.--The Education of the Deaf Act of 1986 is
further amended--
(1) in section 112(b)(3) (20 U.S.C. 4332(b)(3)), by
striking ``Education and Labor'' and inserting ``Education and
the Workforce'';
(2) in section 203 (20 U.S.C. 4353)--
(A) in the heading of subsection (a), by striking
``General Accounting'' and inserting ``Government
Accountability'';
(B) in subsection (a), by striking ``General
Accounting'' and inserting ``Government
Accountability'';
(C) in subsection (b)(3), by striking ``Education
and Labor'' and inserting ``Education and the
Workforce''; and
(D) in subsection (c)(2)(A), by striking
``Education and Labor'' and inserting ``Education and
the Workforce'';
(3) in section 204 (20 U.S.C. 4354), by striking
``Education and Labor'' and inserting ``Education and the
Workforce'';
(4) in section 208(a) (20 U.S.C. 4359(a)), by striking
``Education and Labor'' and inserting ``Education and the
Workforce''; and
(5) in section 210(b) (20 U.S.C. 4359b(b)), by striking
``Education and Labor'' and inserting ``Education and the
Workforce''.
PART B--TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF
1978; DINE' COLLEGE ACT
SEC. 911. TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT
OF 1978.
(a) Definitions.--Section 2 of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801) is amended--
(1) in subsection (a)--
(A) in paragraph (7), by adding ``and'' at the end;
(B) in paragraph (8), by striking ``; and'' and
inserting a period; and
(C) by striking paragraph (9); and
(2) in subsection (b)--
(A) by amending paragraph (1) to read as follows:
``(1) Such number shall be calculated based on the number
of Indian students who are enrolled--
``(A) at the conclusion of the third week of each
academic term; or
``(B) on the fifth day of a shortened program
beginning after the conclusion of the third full week
of an academic term.'';
(B) in paragraph (3), by striking ``for purposes of
obtaining'' and inserting ``solely for the purpose of
obtaining''; and
(C) by inserting after paragraph (5), the
following:
``(6) Enrollment data from the prior-prior academic year
shall be used.''.
(b) Authorization of Appropriations.--The Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et
seq.) is amended by inserting after section 2 (25 U.S.C. 1801), the
following:
``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
``(a) Titles I and IV.--There are authorized to be appropriated
$57,412,000 for each of fiscal years 2019 through 2024 to carry out
titles I and IV.
``(b) Title V.--There are authorized to be appropriated $7,414,000
for each of fiscal years 2019 through 2024 to carry out title V.''.
(c) Repeal of Planning Grants.--Section 104 of the Tribally
Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C.
1804a) is repealed.
(d) Grants to Tribally Controlled Colleges and Universities.--
Section 107 of the Tribally Controlled Colleges and Universities
Assistance Act of 1978 (25 U.S.C. 1807) is amended--
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
(e) Amount of Grants.--Section 108(b)(1) of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1808(b)(1))
is amended--
(1) by striking ``of the funds available for allotment by
October 15 or no later than 14 days after appropriations become
available'' and inserting `` of the amounts appropriated for
any fiscal year on or before July 1 of that fiscal year''; and
(2) by striking ``January 1'' and inserting ``September
30'';
(f) Authorization of Appropriations.--Section 110(a) of the
Tribally Controlled Colleges and Universities Assistance Act of 1978
(25 U.S.C. 1810(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``$3,200,000 for fiscal year 2009
and'';
(B) by striking ``for each of the five succeeding
fiscal years''; and
(C) by inserting ``from the amount made available
under section 3(a) for each fiscal year'' after
``necessary'';
(2) in paragraph (2), by striking ``for fiscal year 2009''
and all that follows through the period at the end and
inserting ``from the amount made available under section 3(a)
for each fiscal year.'';
(3) in paragraph (3), by striking ``fiscal year 2009'' and
all that follows through the period at the end and inserting
``from the amount made available under section 3(a) for each
fiscal year.''; and
(4) in paragraph (4), by striking ``2009'' and inserting
``2019''.
(g) Rules and Regulations.--The Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended
by striking section 115 (25 U.S.C. 1815).
(h) Repeal of Endowment Program.--
(1) Repeal.--Title III of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C. 1831 et
seq.) is repealed.
(2) Transition.--
(A) In general.--Subject to subparagraph (B), title
III of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1831 et
seq.), as such title was in effect on the day before
the date of the enactment of this Act, shall apply with
respect to any endowment fund established or funded
under such title before such date of enactment, except
that the Secretary of the Interior may not make any
grants or Federal capital contributions under such
title after such date.
(B) Termination.--Subparagraph (A) shall terminate
on the date that is 20 years after the date of the
enactment of this Act. On or after such date, a
tribally controlled college or university may use the
corpus (including the Federal and institutional capital
contribution) of any endowment fund described in such
subparagraph to pay any expenses relating to the
operation or academic programs of such college or
university.
(i) Tribal Economic Development; Authorization of Appropriations.--
Section 403 of the Tribally Controlled Colleges and Universities
Assistance Act of 1978 (25 U.S.C. 1852) is amended by striking ``for
fiscal year 2009'' and all that follows through the period at the end
and inserting ``from the amount made available under section 3(a) for
each fiscal year.''.
(j) Tribally Controlled Postsecondary Career and Technical
Institutions.--Section 504 of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1864) is amended by
striking ``for fiscal year 2009'' and all that follows through the
period at the end and inserting ``from the amount made available under
section 3(b) for each fiscal year.''
(k) Clerical Amendments.--The Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.), as
amended by subsections (a) through (j), is further amended--
(1) by striking ``Bureau of Indian Affairs'' each place it
appears and inserting ``Bureau of Indian Education'';
(2) by striking ``Navajo Community College Act'' each place
it appears and inserting ``Dine' College Act'';
(3) by striking ``colleges or universities'' each place it
appears, including in headings, and inserting ``colleges and
universities'' and conforming the font and typeface
accordingly; and
(4) in section 109 (25 U.S.C. 1809), by redesignating the
second subsection (c) as subsection (d).
SEC. 912. DINE' COLLEGE ACT.
(a) Short Title.--The first section of Public Law 92-189 is amended
by striking ``this Act may be cited as the `Navajo Community College
Act''' and inserting ``this Act may be cited as the `Dine' College
Act'''.
(b) References.--Any reference to the Navajo Community College Act
in any law (other than this Act), regulation, map, document, record, or
other paper of the United States shall be deemed to be a reference to
the Dine' College Act.
(c) Authorization of Appropriations.--Section 5 of Public Law 92-
189 is amended--
(1) in subsection (a)(1), by striking ``for fiscal years
2009 through 2014'' and inserting ``from the amount made
available under subsection (b)(1) for each fiscal year''; and
(2) in subsection (b)(1), by striking ``such sums as are
necessary for fiscal years 2009 through 2014'' and inserting
``$13,600,000 for each of fiscal years 2019 through 2024''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Ordered to be Reported (Amended) by the Yeas and Nays: 23 - 17.
Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 115-550.
Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 115-550.
Placed on the Union Calendar, Calendar No. 413.
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