No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6951 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 6951
To lower the cost of postsecondary education for students and families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 11, 2024
Ms. Foxx (for herself, Mr. Owens, Mr. Grothman, Mr. Allen, Mr. Smucker,
Mrs. McClain, Mrs. Steel, and Mr. Williams of New York) introduced the
following bill; which was referred to the Committee on Education and
the Workforce
_______________________________________________________________________
A BILL
To lower the cost of postsecondary education for students and families.
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 ``College Cost
Reduction 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.
TITLE I--TRANSPARENCY
Part A--Definitions
Sec. 101. Definitions.
Part B--College Costs and Financial Value
Sec. 111. Financial aid offers.
Sec. 112. College scorecard website.
Sec. 113. Postsecondary student data system.
Sec. 114. Database of student information prohibited.
TITLE II--ACCESS AND AFFORDABILITY
Part A--Financial Need
Sec. 201. Amount of need; cost of attendance; median cost of college.
Part B--Financial Aid
subpart 1--grants
Sec. 211. Federal Pell Grant program.
Sec. 212. Campus-based aid programs.
subpart 2--loans
Sec. 221. Loan limits.
Sec. 222. Loan repayment.
Sec. 223. Loan rehabilitation.
Sec. 224. Interest capitalization.
Sec. 225. Origination fees.
TITLE III--ACCOUNTABILITY AND STUDENT SUCCESS
Part A--Accountability
subpart 1--department of education
Sec. 301. Agreements with institutions.
Sec. 302. Regulatory relief.
Sec. 303. Limitation on authority of Secretary to propose or issue
regulations and executive actions.
Sec. 304. Office of Federal Student Aid.
subpart 2--accreditors
Sec. 311. Accrediting agency recognition.
Sec. 312. National Advisory Committee on Institutional Quality and
Integrity (NACIQI).
Sec. 313. Alternative quality assurance experimental site initiative.
Part B--Student Success
Sec. 321. Postsecondary student success grants.
Sec. 322. Reverse Transfer Efficiency Act.
Sec. 323. Transparent and fair transfer of credit policies.
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.).
TITLE I--TRANSPARENCY
PART A--DEFINITIONS
SEC. 101. DEFINITIONS.
(a) Definitions.--Section 103 of the Higher Education Act of 1965
(20 U.S.C. 1003) is amended by adding at the end the following:
``(25) CIP code.--The term `CIP code' means the six-digit
taxonomic identification code assigned by an institution of
higher education to a specific program of study at the
institution, determined by the institution in accordance with
the Classification of Instructional Programs published by the
National Center for Education Statistics.
``(26) Credential level.--
``(A) In general.--The term `credential level'
means the level of the degree or other credential
awarded by an institution of higher education to
students who complete a program of study of the
institution. Each degree or other credential awarded by
an institution shall be categorized by the institution
as either undergraduate credential level or graduate
credential level.
``(B) Undergraduate credential.--When used with
respect to a credential or credential level, the term
`undergraduate credential' includes credentials such as
an undergraduate certificate, an associate degree, a
bachelor's degree, and a post-baccalaureate
certificate.
``(C) Graduate credential.--When used with respect
to a credential or credential level, the term `graduate
credential' includes credentials such as a master's
degree, a doctoral degree, a professional degree, and a
postgraduate certificate.
``(27) Program of study.--The term `program of study' means
an academic program of study offered to students by an
institution of higher education that--
``(A) upon completion of the program, results in
the award of a credential to a student, including a
degree, diploma, or certificate, for one credential
level;
``(B) is certified as a program of study in the
institution's program participation agreement under
section 487; and
``(C) is classified by a combination of--
``(i) a CIP code; and
``(ii) one credential level, determined by
the credential awarded upon completion of the
program.
``(28) Program length.--The term `program length' means the
minimum amount of time in weeks, months, or years that is
specified in the catalog, marketing materials, or other
official publications of an institution of higher education for
a full-time student to complete the requirements for a specific
program of study and to obtain the degree or credential awarded
by such program.
``(29) Time to credential.--The term `time to credential'
means, with respect to a student, the actual amount of time in
weeks, months, or years it takes the student to complete the
requirements for a specific program of study and to obtain the
degree or credential awarded by such program.
``(30) Value-added earnings.--
``(A) Calculation.--With respect to a student who
received Federal financial aid under title IV and who
completed a program of study offered by an institution
of higher education, the term `value-added earnings'
means--
``(i) the annual earnings of such student
measured during the applicable earnings
measurement period for such program (as
determined under subparagraph (C)); minus
``(ii) in the case of a student who
completed a program of study that awards--
``(I) an undergraduate credential,
150 percent of the poverty line
applicable to a single individual as
determined under section 673(2) of the
Community Services Block Grant Act (42
U.S.C. 9902(2)) for such year; or
``(II) a graduate credential, 300
percent of the poverty line applicable
to a single individual as determined
under section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2)) for such year.
``(B) Geographic adjustment.--
``(i) In general.--Except as provided in
clause (ii), the Secretary shall use the
geographic location of the institution at which
a student completed a program of study to
adjust the value-added earnings of the student
calculated under subclause (A) by dividing--
``(I) the difference between
subclauses (I) and (II) of such
subparagraph; by
``(II) the most recent regional
price parity index of the Bureau of
Economics Analysis for the State or, as
applicable, metropolitan area in which
such institution is located.
``(ii) Exception.--The value-added earnings
of a student calculated under subparagraph (A)
shall not be adjusted based on geographic
location in accordance with clause (i) if such
student attended principally through distance
education.
``(C) Earnings measurement period.--
``(i) In general.--For the purpose of
calculating the value-added earnings of a
student, except as provided in clause (ii), the
annual earnings of a student shall be
measured--
``(I) in the case of a program of
study that awards an undergraduate
certificate, post baccalaureate
certificate, or graduate certificate,
one year after the student completes
such program;
``(II) in the case of a program of
study that awards an associate's degree
or master's degree, 2 years after the
student completes such program; and
``(III) in the case of a program of
study that awards a bachelor's degree,
doctoral degree, or professional
degree, 4 years after the student
completes such program.
``(ii) Exception.--The Secretary may, as
the Secretary determines appropriate based on
the characteristics of a program of study,
extend an earnings measurement period described
in clause (i) for a program of study that--
``(I) requires completion of an
additional educational program after
completion of the program of study in
order to obtain a licensure associated
with the credential awarded for such
program of study; and
``(II) when combined with the
program length of such additional
educational program for licensure, has
a total program length that exceeds the
relevant earnings measurement period
prescribed for such program of study
under clause (i),
except that in no case shall the annual
earnings of a student be measured more than 5
years after the student completes a program of
study.''.
PART B--COLLEGE COSTS AND FINANCIAL VALUE
SEC. 111. FINANCIAL AID OFFERS.
(a) Institution Financial Aid Offer.--Section 484 of the Higher
Education Opportunity Act (20 U.S.C. 1092 note) is amended to read as
follows:
``SEC. 484. INSTITUTION FINANCIAL AID OFFER FORM.
``(a) Standard Form and Terminology.--The Secretary of Education,
in consultation with the heads of relevant Federal agencies, shall
develop standard terminology and a standard form for financial aid
offers based on recommendations from representatives of students,
veterans, servicemembers, families of students, institutions of higher
education (including community colleges, for-profit institutions, four-
year public institutions, and four-year private nonprofit
institutions), financial aid experts, secondary school and
postsecondary counselors, college access professionals, nonprofit
organizations, and consumer groups.
``(b) Key Required Contents for Aid Offer.--The standard form
developed pursuant to subsection (a) shall be titled `Financial Aid
Offer' and shall include the following items in a consumer-friendly
manner that is simple and understandable, with costs listed first,
followed by grants and scholarships, clearly separated from each other
with separate headings:
``(1) Cost information.--
``(A) In general.--Information on the student's
estimated cost of attendance, including the following:
``(i) Direct costs.--The total cost of all
items described in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll) that
are billed to the student by the institution or
otherwise required by the institution for
enrollment, including such total cost
disaggregated by the cost of each such item,
including, as determined under such section--
``(I) tuition and fees (and other
required expenses); and
``(II) housing and food for a
student electing institutionally owned
or operated food services or
institutionally owned or operated
housing.
``(ii) Indirect costs.--The total cost
(including such total cost disaggregated by the
cost of each item) as determined under section
472 of the Higher Education Act of 1965 (20
U.S.C. 1087ll), of--
``(I) housing and food for a
student not electing institutionally
owned or operated food services and not
living in institutionally owned or
operated housing;
``(II) books, school supplies,
equipment, course materials, and rental
or purchase of a personal computer;
``(III) transportation;
``(IV) any other item described in
such section and not described in
clause (i) determined to be necessary
by the institution.
``(B) The academic period covered by the financial
aid offer, and an explanation that the amount of
financial aid offered may change--
``(i) for academic periods not covered by
the aid offer; or
``(ii) by program.
``(C) An indication of whether cost and aid
estimates are based on full-time or part-time
enrollment.
``(D) An indication, as applicable, about whether
any costs described in subparagraph (A)(i) which are
subject to change are--
``(i) estimated based on the previous year;
or
``(ii) set for the academic period
indicated in accordance with subparagraph (B).
``(2) Grants and scholarships.--The aggregate amount of
grants and scholarships, differentiated by source, that the
student does not have to repay, such as grant aid offered under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.), grant aid offered through other Federal programs, grant
aid offered by the institution, grant aid offered by the State,
and, if known, grant aid or scholarship from an outside source
to the student for such academic period, including a disclosure
that the grants and scholarships do not have to be repaid,
except that institutions shall be authorized to list individual
grants and scholarships by name at the discretion of the
institution.
``(3) Net price.--
``(A) In general.--The net price that the student,
is estimated to have to pay for the student to attend
the institution for such academic period, including the
following:
``(i) Minimum amount covered by student for
enrollment.--The net price of tuition and fees
(and other required expenses), which is equal
to--
``(I) the sum of the costs
described in paragraph (1)(A) that are
required for students (as determined
under paragraph (5)(B)) for the period
indicated in paragraph (1)(B); minus
``(II) the total amount of grant
and scholarship aid described in
paragraph (2) that is included in the
financial aid offer and available to
the student for the costs described in
subclause (I).
``(ii) Estimated annual net price of
attendance.--The estimated net price of
attendance, which is equal to--
``(I) the cost of attendance for
the student for the period indicated in
paragraph (1)(B); minus
``(II) the total amount of grant
and scholarship aid described in
paragraph (2).
``(B) Disclosure.--A disclosure that the net price
is based on an estimate of the total cost of attendance
for the year and not necessarily equivalent to the
amount the student will owe directly to the
institution.
``(4) Loans.--
``(A) Information on any education loan offered
through any Federal or State program (including any
loan under part D or part E of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.; 20
U.S.C. 1087aa et seq.)) that the institution offers for
the student for the academic period covered by the
offer, which shall be made--
``(i) with clear use of the word `loan' to
describe the recommended loan amounts; and
``(ii) with clear labeling of subsidized
and unsubsidized loans.
``(B) If applicable, a disclosure that such loans
have to be repaid with interest.
``(C) Information on any other loan that the
student or parent has applied for and been approved
for, regardless of the source.
``(5) Student employment.--Information on work-study
employment opportunities (including work-study programs under
part C of title IV of the Higher Education Act of 1965 (20
U.S.C. 1087-51 et seq.), institutional work-study programs, or
State work-study programs), including--
``(A) the maximum annual amount the student may
earn through the program; and
``(B) a disclosure that any amounts received
pursuant to such a program may be--
``(i) subject to the availability of
qualified employment opportunities upon
students enrollment; and
``(ii) disbursed over time as earned by the
student.
``(6) Process for accepting, adjusting, or declining aid
and next steps.--
``(A) The deadlines and a summary of the process
(including the next steps) for--
``(i) accepting the financial aid offered;
``(ii) adjusting the amount of aid offered;
and
``(iii) declining the aid offered.
``(B) Information on when and how costs described
in paragraph (1)(A)(i) must be paid, including whether
such costs are required or optional for the student.
``(C) A disclosure that verification of information
provided on the Free Application for Federal Student
Aid may require the student to submit further
documentation.
``(D) Information about where a student or the
student's family can seek additional information
regarding the financial aid offered, including contact
information for the institution's financial aid office
and the Department of Education's website on financial
aid.
``(E) Information about where a student or a
student's family can seek additional information on
college costs and student outcomes, including a link to
the Department of Education's College Scorecard website
(or successor website).
``(7) Net price calculator.--A link to the universal net
price calculator described in section 132(c)(4).
``(8) Additional information.--Any other information the
Secretary of Education, in consultation with the heads of
relevant Federal agencies, including the Secretary of the
Treasury and the Director of the Bureau of Consumer Financial
Protection, determines necessary, based on the results and
input of the consumer testing under subsection (h)(2), and
limited only to effectively communicating college costs and
financial aid eligibility to students and parents.
``(c) Other Required Contents for Aid Offer.--The standard form
developed under subsection (a) shall include, in addition to the
information described in subsection (b), the following information in a
concise format determined by the Secretary of Education, in
consultation with the heads of relevant Federal agencies and the
individuals and entities described in subsection (a):
``(1) Additional options and potential resources for paying
for the amount listed in subsection (b)(3), such as tuition
payment plans.
``(2) The following information relating to private student
loans:
``(A) A disclosure that private education loans may
be available to cover remaining need, except that the
institution may not include private education loans
other than under the conditions described in subsection
(b)(4)(C) and must include a disclosure that such
loans--
``(i) are subject to an additional
application process; and
``(ii) must be repaid by the borrower or
their co-signer, and may not be eligible for
the benefits available for loans made under
title IV.
``(B) A statement that students considering
borrowing to cover the cost of attendance should
consider available Federal student loans prior to
applying for private education loans, including an
explanation that Federal student loans offer generally
more favorable terms and beneficial repayment options
than private loans.
``(d) Additional Formatting Requirements for Financial Aid Offer.--
The financial aid offer shall meet the following requirements:
``(1) Clearly distinguish between the aid offered under
paragraphs (2) and (4) of subsection (b), by including a
subtotal for the aid offered in each of such paragraphs and by
refraining from commingling the different types of aid
described in such paragraphs.
``(2) Use standard terminology and definitions, as
described in subsection (f)(1), and use plain language where
possible.
``(3) Use the standard aid offer described in subsection
(f)(2).
``(e) Supplemental Content and Disclosures To Be Provided.--In
addition to the standard form described under subsection (a),
institutions shall provide, in supplemental documents or through easily
accessible weblinks to the institution's portal or a website, the
following:
``(1) The renewability requirements and conditions under
which the student can expect to receive similar amounts of such
financial aid for each academic period the student is enrolled
at the institution.
``(2) Whether the aid offer may change if aid from outside
sources is applied after the student receives the initial aid
offer, and, if applicable, how that aid will change.
``(3) If loans under part D or part E of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 20
U.S.C. 1087aa et seq.) or other education loans offered through
Federal programs are included--
``(A) a disclosure that the interest rates and fees
on such loans are set annually and affect total cost
over time, and a link to any website that includes
current information on interest rates and fees; and
``(B) if an institution's recommended Federal
student loan aid offered in subsection (b)(4) is less
than the Federal maximum available to the student, the
institution shall provide additional information on
Federal student loans including the types and amounts
for which the student is eligible and the process for
requesting higher loan amounts if offered loan amounts
were included.
``(4) If the institution opts not to disclose other items
described in subsection (b)(1)(A)(ii)(V) as part of the aid
offer, a list of such other items and the allowance amount for
each such item.
``(f) Standard Information Established by Secretary.--
``(1) Standard terminology.--Not later than 3 months after
the date of enactment of the College Cost Reduction Act, the
Secretary of Education, in consultation with the heads of
relevant Federal agencies, and the individuals and entities
described in subsection (a) shall establish standard
terminology and definitions for the terms described in
subsection (b).
``(2) Standard form.--
``(A) In general.--The Secretary of Education shall
develop multiple draft financial aid offers for
consumer testing, carry out consumer testing for such
forms, and establish a finalized standard financial aid
offer in accordance with--
``(i) the process established under
subsection (h); and
``(ii) the requirements of this section.
``(B) Separate financial aid offers.--The Secretary
shall develop separate financial aid offers for--
``(i) undergraduate students; and
``(ii) graduate students.
``(g) Additional Information; Removal of Information.--Nothing in
this section shall preclude an institution from--
``(1) supplementing the financial aid offer with additional
information, provided that such information utilizes the same
standard terminology identified in subsection (f)(1) and does
not misrepresent costs, financial aid offered, or net price; or
``(2) deleting a required item or disclosure if--
``(A) the student is ineligible for such aid;
``(B) the institution does not participate in the
aid program or type;
``(C) the aid offer does not include the aid
program or type; or
``(D) a cost of attendance item is not applicable
to the student.
``(h) Development of Financial Aid Offer.--
``(1) Draft form.--Not later than 9 months after the date
of enactment of the College Cost Reduction Act, the Secretary
of Education, in consultation with the heads of relevant
Federal agencies and the individuals and entities described in
subsection (a) shall design and produce multiple draft
financial aid offers for consumer testing with postsecondary
students or prospective students. In developing that form, the
Secretary shall ensure that--
``(A) the headings described in paragraphs (1)
through (4) of subsection (b) are in the same font,
appears in the same order, and are displayed
prominently on the financial aid offer, such that none
of that information is inappropriately omitted or
deemphasized;
``(B) the other information required under
subsection (b) appears in a standard format and design
on the financial aid offer; and
``(C) the institution may include a logo or brand
alongside the title of the financial aid offer.
``(2) Consumer testing.--
``(A) In general.--Not later than 9 months after
the date of enactment of the College Cost Reduction
Act, the Secretary of Education, in consultation with
the heads of relevant Federal agencies, shall establish
a process to submit the financial aid offer drafts
developed under paragraph (1) for consumer testing
among representatives of students (including low-income
students, first generation college students, adult
students, veterans, servicemembers, and prospective
students), students' families (including low-income
families, families with first generation college
students, and families with prospective students),
institutions of higher education, secondary school and
postsecondary counselors, and nonprofit consumer
groups.
``(B) Length of consumer testing.--The Secretary of
Education shall ensure that the consumer testing under
this paragraph lasts not longer than 8 months after the
process for consumer testing is developed under
subparagraph (A).
``(3) Final form.--
``(A) In general.--The results of consumer testing
under paragraph (2) shall be used in the development of
the finalized standard financial aid offer required
under subsection (f)(2).
``(B) Reporting requirement.--Not later than 3
months after the date on which the consumer testing
under paragraph (2) concludes, the Secretary of
Education shall submit to Congress, and publish on its
website--
``(i) the final standard financial aid
offer; and
``(ii) a report detailing the results of
such testing, including whether the Secretary
of Education added, modified, or moved any
additional items to the standard financial aid
offer pursuant to subsection (b)(6).
``(4) Authority to modify.--The Secretary of Education may
modify or remove the definitions, terms, formatting, and design
of the financial aid offer based on the results of consumer
testing required under this subsection and before finalizing
the form, or in subsequent consumer testing. The Secretary may
also recommend additional changes to Congress.
``(i) Cost of Attendance Defined.--In this section, the term `cost
of attendance' has the meaning given such term in section 472 of the
Higher Education Act of 1965 (20 U.S.C. 1087ll).''.
(b) Use of Mandatory Financial Aid Offer and Terms.--Part B of
title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is
amended by adding at the end the following:
``SEC. 124. USE OF MANDATORY FINANCIAL AID OFFER AND TERMS.
``(a) In General.--Notwithstanding any other provision of law, each
institution of higher education that receives Federal financial
assistance under this Act shall--
``(1) use the financial aid offer developed under section
484 of the Higher Education Opportunity Act (20 U.S.C. 1092
note) in providing paper, mobile-optimized offers, or other
electronic offers to all students who apply for aid and are
accepted at the institution; and
``(2) use the standard terminology and definitions
developed by the Secretary of Education under subsection (f)(1)
of that section for all communications from the institution
related to financial aid offers.
``(b) Effective Date.--The requirements under this section shall
take effect on the first date on which the Secretary releases the Free
Application for Federal Student Aid for the applicable award year
associated with that application, if such date occurs not less than 1
year after the Secretary of Education finalizes the standard
terminology and form developed in accordance with section 484 of the
Higher Education Opportunity Act (20 U.S.C. 1092 note).
``(c) Administrative Procedures.--Notwithstanding any other
provision of law, the Secretary shall not have the authority to
prescribe regulations to carry out this section.''.
SEC. 112. COLLEGE SCORECARD WEBSITE.
(a) College Scorecard Website.--
(1) Definitions; conforming amendments.--Section 132 of the
Higher Education Act of 1965 (20 U.S.C. 1015a(a)) is amended--
(A) by amending subsection (a) to read as follows:
``(a) Definitions.--In this section:
``(1) College scorecard website.--The term `College
Scorecard website' means the College Scorecard website required
under subsection (c) and includes any successor website.
``(2) Cost of attendance.--The term `cost of attendance'
has the meaning given such term in section 472.
``(3) Total net price required for completion.--The term
`total net price required for completion' means, with respect
to the period of completion of a program of study--
``(A) the sum of the required costs described in
section 484(b)(3)(A)(i)(I) charged to a student for
such period of completion; minus
``(B) the total amount of grant and scholarship aid
described in paragraph (2) of section 484(b) that is
available to the student for the costs described in
subparagraph (A) for completion of a program of
study.'';
(B) by striking subsections (b) through (g); and
(C) by redesignating subsection (h) as subsection
(b).
(2) Scorecard authorized.--Section 132 of the Higher
Education Act of 1965 (20 U.S.C. 1015a) is further amended--
(A) by striking subsection (i); and
(B) by inserting after subsection (b) the
following:
``(c) Consumer Information.--
``(1) Availability of information for title iv institutions
and programs.--Not later than 18 months after the date of the
enactment of the College Cost Reduction Act, the Secretary
shall make publicly available on the College Scorecard website
the following aggregated information with respect to each
institution of higher education and each program of study at
such institution, as applicable, that participates in a program
under title IV:
``(A) A link to the website of the institution.
``(B) A link to the net price calculator for such
institution.
``(C) A link to the website of the institution
containing campus safety data with respect to such
institution.
``(D) The geographic location of the institution.
``(E) Information on the type of institution,
including sector, size, predominant and highest
credential awarded, research intensity, programs of
study offered, and other characteristics of the
institution.
``(F) Information on student enrollment, including
the number and percentage of students enrolled full-
time, less than full-time, and enrolled in distance
education.
``(G) Information on student progression and
completion, including time to credential and rates of
withdrawal, retention, transfer, or completion.
``(H) Information on college costs and financial
aid, including average, median, minimum, and maximum
values of--
``(i) the cost of attendance, including
such cost disaggregated by the costs described
in paragraphs (1) through (14) of section
472(a);
``(ii) the grants and scholarships received
by students at the institution and the number
and percentage of such students receiving such
grants and scholarships, disaggregated by
source and whether such aid is need-based,
merit-based, an athletic scholarship, or other
type of grant or scholarship; and
``(iii) the total net price required for
completion for students who received Federal
financial assistance described in paragraph
(2)(I).
``(I) Information on student debt and repayment,
including--
``(i) the average, median, minimum, and
maximum amounts borrowed by students under
title IV; and
``(ii) information with respect to
repayment of loans made under title IV,
including borrower-based repayment rates,
dollar-based repayment rates, and time spent in
repayment.
``(J) Information on the earnings of students who
received Federal financial assistance described in
paragraph (2)(I), including the average, median,
minimum, and maximum values of--
``(i) with respect to students who complete
a program of study in an award year--
``(I) the annual earnings of such
students; and
``(II) the value-added earnings of
such students; and
``(ii) with respect to students who do not
complete a program of study in an award year,
the annual earnings of such students.
``(2) Disaggregated information.--The Secretary shall
ensure the information described in paragraph (1) is
disaggregated, as applicable, by the following student
characteristics:
``(A) Financial circumstances including--
``(i) household income categories, as
determined by students' adjusted gross income,
family size, and poverty line (as defined in
section 401(a)); and
``(ii) student aid index categories, as
determined by the Secretary.
``(B) Sex.
``(C) Race and ethnicity.
``(D) Classification as a student with a
disability.
``(E) Enrollment status.
``(F) Residency status.
``(G) Status as an international student.
``(H) Status as a recipient of Federal financial
assistance, including--
``(i) a Pell grant;
``(ii) a loan made under title IV; and
``(iii) veterans' education benefits (as
defined in section 480(c)).
``(J) Status as a participant in a program
described in section 116(b)(3)(A)(ii) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3131(b)(3)(A)(ii)).
``(3) Institutional and program comparison.--The Secretary
shall include on the College Scorecard website a method for
users to easily compare institutions and programs, including in
a manner that allows for such comparison based on--
``(A) the institutional and program information
described in paragraph (1); and
``(B) the student characteristics described in
paragraph (2).
``(4) Universal net price calculator.--The Secretary shall
include on the College Scorecard website a universal net price
calculator that enables users to answer questions and receive
personalized pricing information for each institution of higher
education and program of study offered by such institution.
``(5) Updates.--
``(A) Data.--The Secretary shall update the College
Scorecard website not less than annually.
``(B) Technology and format.--The Secretary shall
regularly assess the format and technology of the
College Scorecard website and make any changes or
updates that the Secretary considers appropriate.
``(6) Consumer testing.--In developing and maintaining the
College Scorecard website, the Secretary, in consultation with
appropriate departments and agencies of the Federal Government,
shall--
``(A) not later than 6 months after the date of the
enactment of the College Cost Reduction Act, and not
less than once every 3 years thereafter, 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 Scorecard website
is usable and easily understandable and provides useful
and relevant information to students and families; and
``(B) prominently display on such website in
simple, understandable, and unbiased terms for the most
recent academic year for which satisfactory data is
available, the information described in paragraphs (1)
and (2) that was determined to be useful and relevant
to students and families based on the consumer testing
described in subparagraph (A) for each institution and
program of study (as applicable).
``(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 Scorecard 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
Scorecard website.
``(9) Data collection and duplicated reporting.--
Notwithstanding any other provision of this section, to the
extent that another provision of this section requires the same
reporting or collection of data that is required under this
Act, an institution of higher education, or the Secretary or
Commissioner, shall use the reporting or data required under
this subsection to satisfy both requirements.
``(10) Data privacy.--
``(A) In general.--The Secretary shall ensure any
information made available under this section is made
available in accordance with the privacy laws described
in section 132(f)(1)(C)(iv).
``(B) Small institutions and program of study.--For
purposes of publishing the information described in
paragraphs (1) and (2), for any year for which the
number of students is determined by the Secretary to be
of insufficient size to maintain the privacy of student
data, the Secretary shall--
``(i) aggregate up to 4 years of additional
data for such program of study to obtain data
for a sufficient number of students to maintain
student privacy;
``(ii) in the case of a program of study,
if the method described in clause (i) is
insufficient to maintain student privacy,
aggregate data for students who completed or
who were enrolled in, as applicable, similar
program of study of the institution to obtain
data for a sufficient number of students to
maintain student privacy; and
``(iii) in the case of a program of study,
if the methods described in clauses (i) and
(ii) are insufficient to maintain student
privacy, or additional data described in such
clauses is not available or can not be
aggregated, aggregate data with respect to all
students who completed or were enrolled in, as
applicable, any program of study of the
institution of the same credential level, in
lieu of data specific to students in such
program of study.''.
(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 Scorecard''.
(c) References.--Any reference in any law (other than the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.)), 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 Scorecard
website.
SEC. 113. POSTSECONDARY STUDENT DATA SYSTEM.
Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a)
is further amended--
(1) by redesignating subsections (j) and (k) as subsections
(d) and (e), respectively;
(2) by redesignating subsection (l) as subsection (g); and
(3) by inserting after subsection (e), as so redesignated,
the following:
``(f) Postsecondary Student Data System.--
``(1) In general.--
``(A) Establishment of system.--Not later than 3
years after the date of enactment of the College Cost
Reduction Act, the Commissioner of the National Center
for Education Statistics (referred to in this
subsection as the `Commissioner') in consultation with
the Director of the Institute of Education Sciences
(referred to as `the Director') shall develop and
maintain a secure and privacy-protected postsecondary
student-level data system in order to--
``(i) accurately evaluate student
enrollment patterns, progression, completion,
and postcollegiate outcomes, and higher
education costs and financial aid;
``(ii) assist with transparency,
institutional improvement, and analysis of
Federal aid programs;
``(iii) provide accurate, complete, and
customizable information for students and
families making decisions about postsecondary
education; and
``(iv) reduce the reporting burden on
institutions of higher education in accordance
with section 111 of the College Cost Reduction
Act.
``(B) Avoiding duplicate reporting.--
Notwithstanding any other provision of this section, to
the extent that another provision of this section
requires the same reporting or collection of data that
is required under this subsection, an institution of
higher education, or the Secretary or Commissioner,
shall use the reporting or data required for the
postsecondary student data system under this subsection
to satisfy both requirements.
``(C) Development process.--In developing the
postsecondary student data system described in this
subsection, the Commissioner, in consultation with the
Director, shall--
``(i) focus on the needs of--
``(I) users of the data system; and
``(II) entities, including
institutions of higher education,
reporting to the data system;
``(ii) take into consideration, to the
extent practicable--
``(I) the guidelines outlined in--
``(aa) the `United States
Web Design Standards'
maintained by the General
Services Administration; and
``(bb) the `Digital
Services Playbook' and `TechFAR
Handbook for Procuring Digital
Services Using Agile Processes'
of the United States Digital
Service; and
``(II) the relevant successor
documents or recommendations of such
guidelines;
``(iii) use modern, relevant privacy- and
security-enhancing technology, and enhance and
update the data system as necessary to carry
out the purpose of this subsection;
``(iv) ensure data privacy and security is
consistent with any relevant Federal law
relating to privacy or data security,
including--
``(I) the requirements of
subchapter II of chapter 35 of title
44, United States Code, specifying
security categorization under the
Federal Information Processing
Standards or any relevant successor of
such standards;
``(II) security requirements that
are consistent with the Federal agency
responsibilities in section 3554 of
title 44, United States Code, or any
relevant successor of such
responsibilities; and
``(III) security requirements,
guidelines, and controls consistent
with cybersecurity standards and best
practices developed by the National
Institute of Standards and Technology,
including frameworks, consistent with
section 2(c) of the National Institute
of Standards and Technology Act (15
U.S.C. 272(c)), or any relevant
successor of such frameworks;
``(v) follow Federal data minimization
practices to ensure only the minimum amount of
data is collected to meet the system's goals,
in accordance with Federal data minimization
standards and guidelines developed by the
National Institute of Standards and Technology;
and
``(vi) provide notice to students outlining
the data included in the system and how the
data are used.
``(D) Limitation.--The data system developed under
this subsection may only include data with respect to--
``(i) students receiving--
``(I) Federal financial assistance
under title IV of this Act; or
``(II) veteran's education
benefits, as defined in section 480(c);
and
``(ii) participants in a program described
in section 116(b)(3)(A)(ii) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3131(b)(3)(A)(ii)).
``(2) Data elements.--
``(A) In general.--Not later than 3 years after the
date of enactment of the College Cost Reduction Act,
the Commissioner, in consultation with the
Postsecondary Student Data System Advisory Committee
and the Director, established under subparagraph (B),
shall determine--
``(i) the data elements to be included in
the postsecondary student data system, in
accordance with subparagraphs (C) and (D); and
``(ii) how to include the data elements
required under subparagraph (C), and any
additional data elements selected under
subparagraph (D), in the postsecondary student
data system.
``(B) Postsecondary student data system advisory
committee.--
``(i) Establishment.--Not later than 1 year
after the date of enactment of the College Cost
Reduction Act, the Commissioner, in
consultation with the Director, shall establish
a Postsecondary Student Data System Advisory
Committee (referred to in this subsection as
the `Advisory Committee'), whose members shall
include--
``(I) the Chief Privacy Officer of
the Department or an official of the
Department delegated the duties of
overseeing data privacy at the
Department;
``(II) the Chief Security Officer
of the Department or an official of the
Department delegated the duties of
overseeing data security at the
Department;
``(III) representatives of diverse
institutions of higher education, which
shall include equal representation
between 2-year and 4-year institutions
of higher education, and from public,
nonprofit, and proprietary institutions
of higher education, including
minority-serving institutions;
``(IV) representatives from State
higher education agencies, entities,
bodies, or boards;
``(V) representatives of
postsecondary students;
``(VI) representatives from
relevant Federal agencies;
``(VII) individuals with expertise
in data privacy and security; and
``(VIII) other stakeholders
(including individuals with consumer
protection and postsecondary education
research).
``(ii) Requirements.--The Commissioner,
working with the Director, shall ensure that
the Advisory Committee--
``(I) adheres to all requirements
under chapter 10 of title 5, United
States Code (commonly known as the
`Federal Advisory Committee Act');
``(II) establishes operating and
meeting procedures and guidelines
necessary to execute its advisory
duties; and
``(III) is provided with
appropriate staffing and resources to
execute its advisory duties.
``(C) Required data elements.--The data elements in
the postsecondary student data system shall include the
following:
``(i) Student-level data elements necessary
to calculate the information within the surveys
designated by the Commissioner as `student-
related surveys' in the Integrated
Postsecondary Education Data System (IPEDS), as
such surveys are in effect on the day before
the date of enactment of the College Cost
Reduction Act, except that in the case that
collection of such elements would conflict with
the prohibition under subparagraph (F), such
elements in conflict with such prohibition
shall be included in the aggregate instead of
at the student level.
``(ii) Student-level data elements reported
by institutions in accordance with section
668.408 of title 34, Code of Federal
Regulations, as in effect on July 1, 2024.
``(iii) Student-level data elements
necessary to allow for reporting student
enrollment, persistence, progression (including
credit accumulation) retention, transfer,
completion, and time and credits to credential
measures for all credential levels separately
(including certificate, associate,
baccalaureate, and advanced degree levels),
within and across institutions of higher
education (including across all categories of
institution level, control, and predominant
degree awarded). The data elements shall allow
for reporting about all such data disaggregated
by the following categories:
``(I) Enrollment status as a first-
time student, recent transfer student,
or other nonfirst-time student.
``(II) Attendance intensity,
whether full-time or part-time.
``(III) Credential-seeking status,
by credential level (including
noncredit-seeking and noncredit
credentials).
``(IV) Race or ethnicity, in a
manner that captures all the racial
groups specified in the most recent
American Community Survey of the Bureau
of the Census.
``(V) Age intervals.
``(VI) Sex.
``(VII) Status as a first
generation college student (as defined
in section 402A(h)).
``(VIII) Economic status.
``(IX) Measures related to college
readiness, including participation in
postsecondary remedial coursework or
gateway course completion.
``(X) Program of study.
``(XI) Status as an online
education student, whether exclusively
or partially enrolled in online
education.
``(XII) Military or veteran benefit
status (as determined based on receipt
of veteran's education benefits, as
defined in section 480(c)).
``(XIII) Federal Pell Grant
recipient status under section 401 and
Federal loan recipient status under
title IV.
``(XIV) Status as a participant in
a program described in section
116(b)(3)(A)(ii) of the Workforce
Innovation and Opportunity Act (29
U.S.C. 3131(b)(3)(A)(ii)).
``(D) Reevaluation.--Not less than once every 3
years after the implementation of the postsecondary
student data system described in this subsection, the
Commissioner, in consultation with the Advisory
Committee described in subparagraph (B) and working
with the Director, shall report to Congress the data
elements included in the postsecondary student data
system and recommend any additional data elements to be
included in such system.
``(E) Prohibitions.--The postsecondary student data
system shall not include individual health data
(including data relating to physical health or mental
health), student discipline records or data, elementary
and secondary education data, an exact address, course
grades, postsecondary entrance examination results,
political affiliation, religion, or any other data in
the postsecondary student data system not described in
this subsection.
``(3) Periodic matching with other federal data systems.--
``(A) Data sharing agreements.--
``(i) In general.--The Commissioner, in
consultation with the Director, shall ensure
secure and privacy-protected periodic data
matches by entering into data sharing
agreements with each of the following Federal
agencies and offices:
``(I) The Secretary of the Treasury
and the Commissioner of the Internal
Revenue Service, in order to calculate
aggregate program- and institution-
level earnings of postsecondary
students described in subparagraph
(B)(ii).
``(II) The Secretary of Defense, in
order to assess the use of
postsecondary educational benefits and
the outcomes of servicemembers who are
receiving veteran's education benefits
(as defined in section 480(c)).
``(III) The Secretary of Veterans
Affairs, in order to assess the use of
postsecondary educational benefits and
outcomes of veterans who are receiving
veteran's education benefits (as
defined in section 480(c)).
``(IV) The Director of the Bureau
of the Census, in order to assess the
employment outcomes of former
postsecondary education students
described in paragraph (1)(D).
``(V) The Chief Operating Officer
of the Office of Federal Student Aid,
in order to analyze the use of
postsecondary educational benefits
provided under this Act.
``(VI) The Commissioner of the
Social Security Administration, in
order to evaluate labor market outcomes
of former postsecondary education
students described in paragraph (1)(D).
``(VII) The Secretary of Health and
Human Services, in order to evaluate
the wages of former postsecondary
education students described in
paragraph (1)(D).
``(ii) Data sharing agreements.--The heads
of Federal agencies and offices described under
clause (i) shall enter into data sharing
agreements with the Commissioner to ensure
secure and privacy-protected periodic data
matches as described in this paragraph.
``(B) Categories of data.--The Commissioner, in
consultation with the Director, shall, at a minimum,
seek to ensure that the secure and privacy-protected
periodic data matches described in subparagraph (A)
permit consistent reporting of the following categories
of data for students described in paragraph (1)(D) who
completed a program of study and who did not complete a
program of study:
``(i) Enrollment, retention, transfer, and
completion outcomes.
``(ii) Financial indicators for
postsecondary students receiving Federal grants
and loans, including grant and loan aid by
source, cumulative student debt, loan repayment
status, and repayment plan.
``(iii) Post-completion outcomes, including
earnings and employment (including industry,
occupation, and location of employment, and
further education, by program of study and
credential level) and as measured at time
intervals appropriate to the credential sought
and earned.
``(C) Periodic data match streamlining and
confidentiality.--
``(i) Streamlining.--In carrying out the
secure and privacy-protected periodic data
matches under this paragraph, the Commissioner
shall--
``(I) ensure that such matches are
not continuous, but occur only
periodically at appropriate intervals,
as determined by the Commissioner to
meet the goals of subparagraph (A); and
``(II) seek to--
``(aa) streamline the data
collection and reporting
requirements for institutions
of higher education;
``(bb) minimize duplicative
reporting across or within
Federal agencies or
departments, including
reporting requirements
applicable to institutions of
higher education under the
Workforce Innovation and
Opportunity Act (29 U.S.C. 3101
et seq.) and the Carl D.
Perkins Career and Technical
Education Act of 2006;
``(cc) protect student
privacy; and
``(dd) streamline the
application process for student
loan benefit programs available
to borrowers based on data
available from different
Federal data systems.
``(ii) Review.--Not less often than once
every 3 years after the establishment of the
postsecondary student data system under this
subsection, the Commissioner, in consultation
with the Advisory Committee and the Director,
shall review methods for streamlining data
collection from institutions of higher
education and minimizing duplicative reporting
within the Department and across Federal
agencies that provide data for the
postsecondary student data system.
``(iii) Confidentiality.--The Commissioner
shall ensure that any periodic matching or
sharing of data through periodic data system
matches established in accordance with this
paragraph--
``(I) complies with the security
and privacy protections described in
paragraph (1)(C)(iv) and other Federal
data protection protocols;
``(II) follows industry best
practices commensurate with the
sensitivity of specific data elements
or metrics;
``(III) does not result in the
creation of a single standing, linked
Federal database at the Department that
maintains the information reported
across other Federal agencies; and
``(IV) discloses to postsecondary
students what data are included in the
data system and periodically matched
and how the data are used.
``(iv) Correction.--The Commissioner, in
consultation with the Advisory Committee and
Director, shall establish a process for
students to request access to only their
personal information for inspection and request
corrections to inaccuracies in a manner that
protects the student's personally identifiable
information. The Commissioner shall respond in
writing to every request for a correction from
a student.
``(4) Publicly available information.--
``(A) In general.--The Commissioner shall make the
summary aggregate information described in subparagraph
(C), at a minimum, publicly available through a user-
friendly consumer information website and analytic tool
for institutional and research use that--
``(i) provides appropriate mechanisms for
users to customize and filter information by
institutional and student characteristics;
``(ii) allows users to build summary
aggregate reports of information, including
reports that allow comparisons across multiple
institutions and programs, subject to
subparagraph (B);
``(iii) uses appropriate statistical
disclosure limitation techniques necessary to
ensure that the data released to the public
cannot be used to identify specific
individuals; and
``(iv) provides users with appropriate
contextual factors to make comparisons, which
may include national median figures of the
summary aggregate information described in
subparagraph (C).
``(B) No personally identifiable information
available.--The summary aggregate information described
in this paragraph shall not include personally
identifiable information.
``(C) Summary aggregate information available.--The
summary aggregate information described in this
paragraph shall, at a minimum, include each of the
following for each institution of higher education:
``(i) Measures of student access,
including--
``(I) admissions selectivity and
yield; and
``(II) enrollment, disaggregated by
each category described in paragraph
(2)(C)(iii).
``(ii) Measures of student progression,
including retention rates and persistence
rates, disaggregated by each category described
in paragraph (2)(C)(iii).
``(iii) Measures of student completion,
including--
``(I) transfer rates and outcomes,
completion rates, and time and credits
to credential, disaggregated by each
category described in paragraph
(2)(C)(iii); and
``(II) number of completions,
disaggregated by each category
described in paragraph (2)(C)(iii).
``(iv) Measures of student costs,
including--
``(I) tuition, required fees, cost
of attendance, grants and scholarships,
net price, and unmet need disaggregated
by in-State tuition or in-district
tuition status (if applicable), direct
and indirect costs, program of study
(if applicable), and credential level;
and
``(II) typical grant amounts and
loan amounts received by students
reported separately from Federal,
State, local, institutional, employers,
and other sources, and cumulative debt,
disaggregated by--
``(aa) each category
described in paragraph
(2)(C)(iii); and
``(bb) completion status.
``(v) Measures of postcollegiate student
outcomes, including return on investment,
employment rates, earnings, loan repayment and
default rates, and further education rates.
These measures shall--
``(I) be disaggregated by--
``(aa) each category
described in paragraph
(2)(C)(iii); and
``(bb) completion status;
and
``(II) be measured immediately
after leaving postsecondary education
and at time intervals appropriate to
the credential sought or earned.
``(D) Development criteria.--In developing the
method and format of making the information described
in this paragraph publicly available, the Commissioner
shall--
``(i) focus on the needs of the users of
the information, which will include students,
families of students, potential students,
researchers, and other consumers of education
data;
``(ii) take into consideration, to the
extent practicable, the guidelines described in
paragraph (1)(C)(ii)(I), and relevant successor
documents or recommendations of such
guidelines;
``(iii) use modern, relevant technology and
enhance and update the postsecondary student
data system with information, as necessary to
carry out the purpose of this paragraph;
``(iv) ensure data privacy and security in
accordance with standards and guidelines
developed by the National Institute of
Standards and Technology, and in accordance
with any other Federal law relating to privacy
or security, including complying with the
requirements of subchapter II of chapter 35 of
title 44, United States Code, specifying
security categorization under the Federal
Information Processing Standards, and security
requirements, and setting of National Institute
of Standards and Technology security baseline
controls at the appropriate level; and
``(v) conduct consumer testing to determine
how to make the information as meaningful to
users as possible.
``(5) Permissible disclosures of data.--
``(A) Data reports and queries.--
``(i) In general.--Not later than 3 years
after the date of enactment of the College Cost
Reduction Act, the Commissioner in consultation
with the Director, shall develop and implement
a secure and privacy-protected process for
making student-level, nonpersonally
identifiable information, with direct
identifiers removed, from the postsecondary
student data system available for vetted
research and evaluation purposes approved by
the Commissioner in a manner compatible with
practices for disclosing National Center for
Education Statistics restricted-use survey data
as in effect on the day before the date of
enactment of the College Cost Reduction Act, or
by applying other research and disclosure
restrictions to ensure data privacy and
security. Such process shall be approved by the
National Center for Education Statistics'
Disclosure Review Board (or successor body).
``(ii) Providing data reports and queries
to institutions and states.--
``(I) In general.--The Commissioner
shall provide feedback reports, at
least annually, to each institution of
higher education, each postsecondary
education system that fully
participates in the postsecondary
student data system, and each State
higher education body as designated by
the governor.
``(II) Feedback reports.--The
feedback reports provided under this
clause shall include program-level and
institution-level information from the
postsecondary student data system
regarding students who are associated
with the institution or, for State
representatives, the institutions
within that State, on or before the
date of the report, on measures
including student mobility (including
transfer and completion rates) and
workforce outcomes, provided that the
feedback aggregate summary reports
protect the privacy of individuals.
``(III) Determination of content.--
The content of the feedback reports
shall be determined by the Commissioner
in consultation with the Advisory
Committee and the Director.
``(iii) Permitting state data queries.--The
Commissioner shall, in consultation with the
Advisory Committee and as soon as practicable,
create a process through which States may
submit lists of secondary school graduates
within the State to receive summary aggregate
outcomes for those students who enrolled at an
institution of higher education, including
postsecondary enrollment, retention and
transfer, and college completion, provided that
those data protect the privacy of individuals
and that the State data submitted to the
Commissioner are not stored in the
postsecondary education system.
``(iv) Regulations.--The Commissioner shall
promulgate regulations to ensure fair, secure
and privacy-protected, and equitable access to
data reports and queries under this paragraph.
``(B) Disclosure limitations.--In carrying out the
public reporting and disclosure requirements of this
subsection, the Commissioner shall use appropriate
statistical disclosure limitation techniques necessary
to ensure that the data released to the public cannot
include personally identifiable information or be used
to identify specific individuals.
``(C) Sale of data prohibited.--Data collected
under this subsection, including the public-use data
set and data comprising the summary aggregate
information available under paragraph (4), shall not be
sold to any third party by the Commissioner, including
any institution of higher education or any other
entity.
``(D) Limitation on use by other federal
agencies.--
``(i) In general.--The Commissioner shall
not allow any other Federal agency to use data
collected under this subsection for any purpose
except--
``(I) for vetted research and
evaluation conducted by the other
Federal agency, as described in
subparagraph (A)(i); or
``(II) for a purpose explicitly
authorized by an Act of Congress.
``(ii) Prohibition on limitation of
services.--The Secretary, or the head of any
other Federal agency, shall not use data
collected under this subsection to limit
services to students.
``(E) Law enforcement.--Personally identifiable
information collected under this subsection shall not
be used for any Federal, State, or local law
enforcement activity or any other activity that would
result in adverse action against any student or a
student's family.
``(F) Limitation of use for federal rankings or
summative rating system.--The comprehensive data
collection and analysis necessary for the postsecondary
student data system under this subsection shall not be
used by the Secretary or any Federal entity to
establish any Federal ranking system of institutions of
higher education or a system that results in a
summative Federal rating of institutions of higher
education.
``(G) Rule of construction.--Nothing in this
paragraph shall be construed to prevent the use of
individual categories of aggregate information to be
used for accountability purposes.
``(H) Rule of construction regarding commercial use
of data.--Nothing in this paragraph shall be construed
to prohibit third-party entities from using publicly
available information in this data system for
commercial use.
``(6) Submission of data.--
``(A) Required submission.--Each institution of
higher education participating in a program under title
IV, or the assigned agent of such institution, shall,
for each instructional program, and in accordance with
section 487(a)(17), collect, and submit to the
Commissioner, the data requested by the Commissioner to
carry out this subsection.
``(B) Voluntary submission.--Any institution of
higher education not participating in a program under
title IV may voluntarily participate in the
postsecondary student data system under this subsection
by collecting and submitting data to the Commissioner,
as the Commissioner may request to carry out this
subsection.
``(C) Personally identifiable information.--In
accordance with paragraph (2)(C)(i), if the submission
of an element of student-level data is prohibited under
paragraph (2)(F) (or otherwise prohibited by law), the
institution of higher education shall submit that data
to the Commissioner in the aggregate.
``(7) Unlawful willful disclosure.--
``(A) In general.--It shall be unlawful for any
person who obtains or has access to personally
identifiable information in connection with the
postsecondary student data system described in this
subsection to willfully disclose to any person (except
as authorized in this Act or by any Federal law) such
personally identifiable information.
``(B) Penalty.--Any person who violates
subparagraph (A) shall be subject to a penalty
described under section 3572(f) of title 44, United
States Code, and section 183(d)(6) of the Education
Sciences Reform Act of 2002 (20 U.S.C. 9573(d)(6)).
``(C) Employee of officer of the united states.--If
a violation of subparagraph (A) is committed by any
officer or employee of the United States, the officer
or employee shall be dismissed from office or
discharged from employment upon conviction for the
violation.
``(8) Data security.--The Commissioner shall produce and
update as needed guidance and regulations relating to privacy,
security, and access which shall govern the use and disclosure
of data collected in connection with the activities authorized
in this subsection. The guidance and regulations developed and
reviewed shall protect data from unauthorized access, use, and
disclosure, and shall include--
``(A) an audit capability, including mandatory and
regularly conducted audits;
``(B) access controls;
``(C) requirements to ensure sufficient data
security, quality, validity, and reliability;
``(D) confidentiality protection in accordance with
the applicable provisions of subchapter III of chapter
35 of title 44, United States Code;
``(E) appropriate and applicable privacy and
security protection, including data retention and
destruction protocols and data minimization, in
accordance with the most recent Federal standards
developed by the National Institute of Standards and
Technology; and
``(F) protocols for managing a breach, including
breach notifications, in accordance with the standards
of National Center for Education Statistics.
``(9) Data collection.--The Commissioner shall ensure that
data collection, maintenance, and use under this subsection
complies with section 552a of title 5, United States Code.
``(10) Definitions.--In this subsection:
``(A) Institution of higher education.--The term
`institution of higher education' has the meaning given
the term in section 102.
``(B) Minority-serving institution.--The term
`minority-serving institution' means an institution of
higher education listed in section 371(a).
``(C) Personally identifiable information.--The
term `personally identifiable information' means
personally identifiable information within the meaning
of section 444 of the General Education Provisions
Act.''.
SEC. 114. DATABASE OF STUDENT INFORMATION PROHIBITED.
(a) In General.--Section 134(b) of the Higher Education Act of 1965
(20 U.S.C. 1015c(b)) is amended to read as follows:
``(b) Exception.--The provisions of subsection (a) shall not apply
to a system (or a successor system)--
``(1) that--
``(A) is necessary for the operation of programs
authorized by title II, IV, or VII; and
``(B) was in use by the Secretary, directly or
through a contractor, as of the day before the date of
enactment of the College Cost Reduction Act; or
``(2) required under section 132.''.
(b) Program Participation Agreements.--
(1) In general.--Paragraph (17) of section 487(a) of the
Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended to
read as follows:
``(17) The institution or the assigned agent of the
institution will collect and submit to the Commissioner for
Education Statistics data in accordance with section 132(f),
the non-student related surveys within the Integrated
Postsecondary Education Data System (IPEDS), or any other
Federal institution of higher education data collection effort
(as designated by the Secretary), in a timely manner and to the
satisfaction of the Secretary.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect no later than 3 years after the date of
enactment of this Act.
(c) Reporting Burden.--The Secretary of Education and the
Commissioner for Education Statistics shall take such steps as are
necessary to ensure that the development and maintenance of the
postsecondary student data system required under section 132(f) of the
Higher Education Act of 1965, as added by section 113 of this Act,
occurs in a manner that reduces the reporting burden for entities that
reported into the Integrated Postsecondary Education Data System
(IPEDS).
TITLE II--ACCESS AND AFFORDABILITY
PART A--FINANCIAL NEED
SEC. 201. AMOUNT OF NEED; COST OF ATTENDANCE; MEDIAN COST OF COLLEGE.
(a) Amount of Need.--Section 471 (20 U.S.C. 1087kk), as amended by
the FAFSA Simplification Act, is further amended by amending paragraph
(1) to read as follows:
``(1)(A) for award year 2024-2025, the cost of attendance
of such student; and
``(B) for award year 2025-2026 and each subsequent award
year, the median cost of college of the program of study of
such student, minus''.
(b) Cost of Attendance.--Section 472(c) (20 U.S.C. 1087ll(c)), as
amended by the FAFSA Simplification Act, is further amended by striking
``of the institution'' and inserting ``of each program of study at the
institution''.
(c) Median Cost of College.--Part F of title IV (20 U.S.C. 1087kk),
as amended by the FAFSA Simplification Act, is further amended by
inserting after section 472, as amended by subsection (b), the
following:
``SEC. 472A. DETERMINATION OF MEDIAN COST OF COLLEGE.
``For the purpose of this title, the term `median cost of college',
when used with respect to a program of study offered by one or more
institutions of higher education for an award year, means the median of
the cost of attendance (as defined in section 472) for the program of
study across all institutions of higher education offering such a
program for the preceding award year.''.
PART B--FINANCIAL AID
Subpart 1--Grants
SEC. 211. FEDERAL PELL GRANT PROGRAM.
(a) Award May Not Exceed Median Cost of College.--Section 401(b)(3)
(20 U.S.C. 1070a(b)(3)), as amended by title VII of division FF of the
Consolidated Appropriations Act, 2021 (title VII of division FF of
Public Law 116-260) (referred to in this Act as the ``FAFSA
Simplification Act''), is further amended by adding at the end the
following:
``(3) Award may not exceed median cost of college.--No
Federal Pell Grant under this subpart shall exceed the median
cost of college (as defined in section 472A) for the program at
which that student is in attendance. If, with respect to any
student, it is determined that the amount of a Federal Pell
Grant for that student exceeds the median cost of college for
such program for that year, the amount of the Federal Pell
Grant shall be reduced until the Federal Pell Grant does not
exceed the median cost of college for such program for that
year.''.
(b) Pell PLUS Program.--Section 401 (20 U.S.C. 1070a), as amended
by the FAFSA Simplification Act, is further amended by adding at the
end the following:
``(k) Pell Plus Program.--
``(1) Program established.--
``(A) In general.--For each award year for which a
student receives a Federal Pell Grant and meets the
requirements of paragraph (2), the Secretary shall
award such student an additional Federal Pell Grant,
referred to as a `Federal Pell Plus Grant', in an
amount equal to the amount of the student's Federal
Pell Grant award determined under this section for such
award year, except as provided in subparagraph (B).
``(B) Median cost of college reductions.--In any
case in which a student is awarded a Federal Pell Grant
under this section and a Federal Pell Plus grant under
this subsection for an award year, the combined total
of such Federal Pell Grant and such Federal Pell Plus
Grant of such student shall not exceed the median cost
of college (as defined in section 472A) of the program
in which the student is in attendance for that year. In
the case that such combined total exceeds the median
cost of college for the program for that year, the
Secretary shall reduce the amount of the Federal Pell
Plus Grant awarded to the student until the combined
total of such reduced Federal Pell Plus Grant and the
Federal Pell Grant of the student does not exceed such
median cost of college.
``(2) Student eligibility.--A student meets the
requirements of this paragraph, if the student--
``(A) during the award year during which the
student receives a Federal Pell Plus Grant under
paragraph (1)--
``(i) is enrolled in the student's first
undergraduate baccalaureate course of study;
and
``(ii) is maintaining progress toward
completion within 100 percent of the expected
time to completion, as determined by
calculating the difference between--
``(I) the program length for the
program of study in which such student
is in attendance; and
``(II) the period of such program
that such student has completed; and
``(B) has completed at least 4 semesters, or the
equivalent, of such program.
``(3) Duration limits.--The period during which a student
receives a Federal Pell Plus Grant under paragraph (1) shall be
included in calculating the duration limits with respect to
such student under subsection (d)(5), and to the extent that
such period was a fraction of a semester or the equivalent,
only that same fraction of such semester or equivalent shall
count towards such duration limits.
``(4) Pell plus institutional and programmatic
eligibility.--For purposes of this subsection, a Pell Plus
institution is an eligible institution for purposes of this
subpart that--
``(A) notifies the Secretary that the institution
desires to participate in the Pell Plus program under
this subsection--
``(i) with respect to a specific program of
study at the institution; or
``(ii) with respect to each program of
study at the institution;
``(B) agrees to provide, to each student receiving
a Federal Pell Plus Grant under paragraph (1)--
``(i) for each award year for which the
student receives such Federal Pell Plus Grant,
a notification that shall include--
``(I) whether the student is
maintaining the progress toward
completion required under paragraph
(2)(A)(ii);
``(II) in a case in which the
student is not maintaining such
progress toward completion, a list of
available student support services and
additional resources to assist the
student in completing the course of
study for which the student is
receiving the Federal Pell Plus Grant
in the manner described under paragraph
(2)(A)(ii); and
``(III) the amount of funds the
student is receiving under the Federal
Pell Plus Grant; and
``(ii) in the case of a student who, as of
the end of the first semester of the third
academic year of the program of study in which
the student is in attendance, is not
maintaining the progress toward completion
required under paragraph (2)(A)(ii), a warning
during such third academic year that the
student will not be eligible for a Federal Pell
Plus Grant under paragraph (1) for the fourth
academic year of such course of study unless
the student demonstrates, by not later than the
beginning of the fourth academic year, progress
toward completing such course of study by the
end of the fourth academic year of such course
of study;
``(C) meets the requirements of paragraph (5); and
``(D) the Secretary determines meets the
requirements of this paragraph and paragraph (5).
``(5) Maximum total price guarantee.--
``(A) Guarantee.--To be eligible to be a Pell Plus
institution under this subsection, an eligible
institution shall--
``(i) provide to each student receiving a
Federal Pell Grant, prior to the first award
year in which the student enrolls at the
institution--
``(I) for each program of study
participating in the Pell Plus program,
the maximum total price for completion
of the program of study, determined by
the institution in accordance with
section 415C(e); and
``(II) a guarantee that, for the
minimum guarantee period for which the
student receives a Federal Pell Grant,
if the student is enrolled in any
program of study participating in the
Pell Plus program, the maximum total
price for completion of such program of
study charged to the student will not
exceed the median value-added earnings
of students who completed such program,
based on the most recent data available
on the College Scorecard in the award
year prior to the first award year in
which the student enrolls at the
institution; and
``(ii) provide information about the
guarantee described in clause (i)(II) to
prospective students by including such
information on the public website of the
institution and in the catalog, marketing
materials, and other official publications of
the institution.
``(B) Duration of minimum guarantee period.--
``(i) In general.--The minimum period
during which a student shall be provided a
guarantee under subparagraph (A) with respect
to the maximum total price for completion of a
program of study at an eligible institution
shall be the median time to credential of
students who completed any undergraduate
program of study at the institution during the
most recent award year for which data are
available, except that such minimum guarantee
period shall not be less than the program
length of the program of study in which the
student is enrolled.
``(ii) Limitation.--An eligible institution
shall not be required to provide a maximum
total price guarantee under subparagraph (A) to
a student after the conclusion of the 6-year
period beginning on the first day on which the
student enrolled at such institution.''.
(c) Information Dissemination Activity.--Section 485(a)(1) (20
U.S.C. 1092(a)(1)) is amended--
(1) in subparagraph (U), by striking ``and'' at the end;
(2) in subparagraph (V), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(W) in the case of an institution under section
401(k), any applicable information with respect to the
institution's participation in the Federal Pell Plus
Grant program under such subsection.''.
(d) Effective Date.--The amendments made by this section shall take
effect with respect to award year 2025-2026 and each succeeding award
year.
SEC. 212. CAMPUS-BASED AID PROGRAMS.
(a) Termination of Certain Programs.--Notwithstanding subparts 3
and 4 of part A, or part C, of title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.), or any other provision of law, except as
expressly authorized by an Act of Congress enacted after the date of
enactment of this Act, beginning on October 1, 2026--
(1) no funds are authorized to be appropriated, or may be
expended, under this Act or any other Act to--
(A) make payments to institutions for Federal
Supplemental Educational Opportunity Grants under
subpart 3 of part A of title IV of such Act (20 U.S.C.
1070b et seq.); or
(B) make payments to States for the Leveraging
Educational Assistance Partnership Program under
subpart 4 of part A of title IV (20 U.S.C. 1070c et
seq.); and
(2) the authority of the Secretary to carry out any program
or activity described in paragraph (1) shall be terminated.
(b) Promise Grants.--Subpart 4 of part A of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070c et seq.) is amended to read as
follows:
``Subpart 4--Promoting Real Opportunities to Maximize Investments and
Savings in Education
``SEC. 415A. PURPOSE.
``(a) Purpose.--It is the purpose of this subpart to provide
performance-based grants to--
``(1) assist institutions in providing certainty to
students and families about postsecondary affordability;
``(2) increase postsecondary access and economic mobility;
and
``(3) ensure that students, institutions, and taxpayers
receive a financial return for investments in postsecondary
education.
``SEC. 415B. PROMISE GRANTS.
``For award year 2026-2027 and each succeeding award year, from
reserved funds remitted to the Secretary in accordance with section
454(d) and additional funds authorized under section 415E, as
necessary, the Secretary shall award PROMISE grants to eligible
institutions to carry out the purpose of this subpart. PROMISE grants
awarded under this subpart shall be performance-based and shall be
awarded to each eligible institution for a 6-year period in an amount
that is determined in accordance with section 415D.
``SEC. 415C. ELIGIBLE INSTITUTIONS; APPLICATION.
``(a) Eligible Institution.--To be eligible for a PROMISE grant
under this subpart, an institution shall--
``(1) be an institution of higher education under section
102, except that an institution described in section
102(a)(1)(C) shall not be an eligible institution under this
subpart; and
``(2) meet the maximum total price guarantee requirements
under subsection (c).
``(b) Application.--An eligible institution seeking a PROMISE grant
under this subpart (including a renewal of such a grant) shall submit
to the Secretary an application, at such time as the Secretary may
require, that contains the information required in this subsection.
Such application shall--
``(1) demonstrate that the institution--
``(A) meets the maximum total price guarantee
requirements under subsection (c); and
``(B) will continue to meet the maximum total price
guarantee requirements for each award year during the
grant period with respect to students first enrolling
at the institution for each such award year;
``(2) describe how grant funds awarded under this subpart
will be used by the institution to carry out the purposes of
this Act, including activities related to--
``(A) postsecondary affordability, including--
``(i) the expansion and continuation of the
maximum total price guarantee requirements
under subsection (c); and
``(ii) any other activities to be carried
out by the institution to increase
postsecondary affordability and minimize the
total net price required for completion (as
defined in section 132(a)) paid by students
receiving need-based student aid;
``(B) postsecondary access, which may include--
``(i) the activities described in section
485E of this Act; and
``(ii) any other activities to be carried
out by the institution to increase
postsecondary access and expand opportunities
for low- and middle-income students; and
``(C) postsecondary student success, which may
include--
``(i) activities to improve completion
rates and reduce time to credential, including
the activities described in section 741 of this
Act, as amended by the College Cost Reduction
Act; and
``(ii) any other activities to be carried
out by the institution to increase value-added
earnings and postsecondary student success;
``(3) describe--
``(A) how the institution will evaluate the
effectiveness of the institution's use of grant funds
awarded under this subpart; and
``(B) how the institution will collect and
disseminate information on promising practices
developed with the use of such grant funds; and
``(4) in the case of an institution that has previously
received a grant under this subpart, contain the evaluation
required under paragraph (3) for each previous grant.
``(c) Maximum Total Price Guarantee Requirements.--As a condition
of eligibility for a PROMISE grant under this subpart, an institution
shall--
``(1) for each award year beginning after the date of
enactment of the College Cost Reduction Act, not later than one
year before the start of each such award year (except that, for
the first award year beginning after such date of enactment,
the institution shall meet these requirements as soon as
practicable such date of enactment)--
``(A) determine the maximum total price for
completion, in accordance with subsection (e), for each
program of study at the institution--
``(i) applicable to students in each income
category described in section 132(c)(2)(A)(i);
and
``(ii) applicable to students in each
student aid index category determined by the
Secretary in accordance with section
132(c)(2)(A)(ii); and
``(B) publish such information on the institution's
website and in the institution's catalog, marketing
materials, or other official publications;
``(2) for the award year for which the institution is
applying for a PROMISE grant, and at least one award year
preceding such award year, provide to each student who first
enrolls, or plans to enroll, in the institution during the
award year and who receives Federal financial aid under this
title a maximum total price guarantee, in accordance with this
section, for the minimum guarantee period applicable to the
student; and
``(3) provide to the Secretary an assurance that the
institution will continue to meet each of the maximum total
price guarantee requirements under this subsection for students
who first enroll, or plan to enroll, in the institution during
each award year included in the grant period.
``(d) Duration of Minimum Guarantee Period.--
``(1) In general.--The minimum period during which a
student shall be provided a guarantee under subsection (c) with
respect to the maximum total price for completion of a program
of study at an institution shall be the median time to
credential of students who completed any undergraduate program
of study at the institution during the most recent award year
for which data are available, except that such minimum
guarantee period shall not be less than the program length of
the program of study in which the student is enrolled.
``(2) Limitation.--An institution shall not be required to
provide a maximum total price guarantee under subsection (c) to
a student after the conclusion of the 6-year period beginning
on the first day on which the student enrolled at such
institution.
``(e) Determination of Maximum Total Price for Completion.--
``(1) In general.--For the purposes of subsection (c) and
the Pell Plus program under section 401(k), an institution
shall determine, prior to the first award year in which a
student enrolls at the institution, the maximum total price
that may be charged to the student for completion of a program
of study at the institution for the minimum guarantee period
applicable to a student, before application of any Federal Pell
grants or other Federal financial aid under this title. Such a
maximum total price for completion shall be determined for
students in each income category and student aid index category
(as determined in accordance with section 132(c)(2)(A)). In
determining the maximum total price for completion to be
charged to each such category of students, the institution may
consider the ability of a category of students to pay tuition
and fees (including the required costs described in section
484(b)(3)(A)(i)(I)), but may not include in such consideration
any Federal Pell grants or other Federal financial aid awards
that may be available to such category of students under this
title.
``(2) Multiple maximum total price guarantees.--In the
event that a student receives more than one maximum total price
guarantee because the student is included in more than one
category of students for which the institution determines a
maximum total price guarantee amount for the purposes of
subsection (c), or the student is participating in the Pell
Plus program under section 401(k), the maximum total price
guarantee applicable to such student for the purposes of this
section and the Pell Plus program shall be equal to the lowest
such guarantee amount.
``SEC. 415D. GRANT AMOUNTS; FLEXIBLE USE OF FUNDS.
``(a) Grant Amount Formula.--
``(1) Formula.--Subject to subsection (b), the amount of a
PROMISE grant for an eligible institution for each year of the
grant period shall be determined by the Secretary annually and
shall be the amount determined by multiplying--
``(A) the lesser of--
``(i) the difference determined by
subtracting one from the quotient of--
``(I) the average, for the 3 most
recent award years for which data are
available, of the median value-added
earnings (as defined in section 103)
for each such award year of students
who completed any program of study of
the institution; divided by
``(II) the average for the 3 most
recent award years, of the maximum
total price applicable for each such
award year to students enrolled in the
institution in any program of study who
received financial aid under this
title; or
``(ii) the number two;
``(B) the average, for the 3 most recent award
years, of the total dollar amount of Federal Pell
Grants (excluding Pell Plus Grants awarded under
section 401(k)) awarded to students enrolled in the
institution in each such award year; and
``(C) the average, for the 3 most recent award
years, of the percentage of low-income students who
received Federal financial assistance under this title
who were enrolled in the institution in each such award
year who--
``(i) completed a program of study at the
institution within 100 percent of the program
length of such program; or
``(ii) only in the case of a two-year
institution or a less than two-year
institution--
``(I) transfer to a four-year
institution; and
``(II) within 4 years after first
enrolling at the two-year or less than
two-year institution, complete a
program of study at the four-year
institution for which a bachelor's
degree (or substantially similar
credential) is awarded.
``(2) Definition of low-income.--In this section, the term
`low-income', when used with respect to a student, means that
the student's family income does not exceed the maximum income
in the lowest income category described in section
132(c)(2)(A)(i).
``(b) Maximum Grant Amount.--Notwithstanding subsection (a), the
maximum amount an eligible institution may receive annually for a grant
under this subpart shall be the amount equal to--
``(1) the average, for the 3 most recent award years, of
the number of students enrolled in the institution in an award
year who receive Federal financial aid under this title;
multiplied by
``(2) $5,000.
``(c) Flexible Use of Funds.--A PROMISE grant awarded under this
subpart shall be used by an eligible institution to carry out the
purposes of this subpart, including--
``(1) carrying out activities included in the institution's
application for such grant related to postsecondary
affordability, access, and student success;
``(2) evaluating the effectiveness of the activities
carried out with such grant in accordance with section
415C(b)(3)(A); and
``(3) collecting and disseminating promising practices
related to the activities carried out with such grant, in
accordance with section 415C(b)(3)(B).
``SEC. 415E. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization To Use Reserved Funds.--To carry out this
subpart, there shall be available to the Secretary any funds remitted
to the Secretary as risk-sharing payments in accordance with section
454(d) for any award year. The Secretary shall use the funds received
through risk-sharing payments to provide the grants.
``(b) Secondary Authorization.--In addition to the amounts
available to the Secretary under subsection (a), there are authorized
to be appropriated, for fiscal year 2026 and each of the 9 succeeding
fiscal years, $2,000,000,000, to carry out this subpart in any award
year for which the amounts available under subsection (a) are
insufficient to fully fund the PROMISE grants awarded under this
subpart in such award year.
``(c) Insufficient Funds.--If the amounts made available to carry
out this subpart for a fiscal year are not sufficient to provide grants
to all eligible institutions in the amount determined under this
subpart, the Secretary shall first provide grants to the eligible
institutions that have the highest percentage of students who are low-
income students (as defined in section 415D).''.
Subpart 2--Loans
SEC. 221. LOAN LIMITS.
(a) Stafford Loans.--
(1) Aggregate and annual limits for graduate and
professional students.--Section 455(a) (20 U.S.C. 1087e(a)) is
amended--
(A) in paragraph (3)--
(i) in subparagraph (A)(ii), by inserting
before the period at the end the following: ``,
except that for any period of instruction
beginning on or after July 1, 2025, such
maximum annual amount shall be determined in
accordance with subparagraph (C)'';
(ii) in subparagraph (B), by inserting
before the period at the end the following:
``for any period of instruction through June
30, 2025''; and
(iii) by adding at the end the following:
``(C) Annual limits.--Notwithstanding any provision
of this part or part B, for any period of instruction
beginning on or after July 1, 2025, the maximum annual
amount of Federal Direct Unsubsidized Stafford loans
that a graduate or professional student may borrow in
any academic year (as defined in section 481(a)(2)) or
its equivalent shall be median cost of college (as
defined in section 472A) of the program of study in
which the student is enrolled, except that the sum of
such annual loan amount and other financial assistance
(as defined in section 480(i)) that the student
receives for such academic year may not exceed the cost
of attendance of such student.
``(D) Aggregate limits.--Notwithstanding any
provision of this part or part B, for any period of
instruction beginning on or after July 1, 2025, the
maximum aggregate amount of Federal Direct Unsubsidized
Stafford loans that--
``(i) a graduate student may borrow shall
be $100,000; and
``(ii) a professional student may borrow
shall be $150,000.
``(E) Exception for certain students.--
``(i) In general.--The provisions listed in
clause (ii) shall not apply with respect to any
individual who, as of June 30, 2025, is
enrolled in a program of study at an
institution of higher education, and has
received a loan (or on whose behalf a loan was
made) under this part for such program, during
the individual's expected time to completion of
such program, as determined by calculating by
the difference between--
``(I) the program length for the
program of study in which such
individual is enrolled; and
``(II) the period of such program
that such individual has completed,
except that such expected time to completion
may not exceed 3 years.
``(ii) Provisions.--An individual described
in clause (i) shall not be subject to
subparagraphs (C) and (D) of this paragraph, or
paragraph (4) or (6).''.
(2) Annual limits for undergraduate borrowers.--Section
455(a) (20 U.S.C. 1087e(a)) is further amended by adding at the
end the following:
``(4) Annual and aggregate loan limits for undergraduate
and all borrowers.--
``(A) Undergraduate students.--
``(i) Annual loan limits.--
``(I) Subsidized loans.--
Notwithstanding any provision of this
part or part B, for any period of
instruction beginning on or after July
1, 2025, the maximum annual amount of
Federal Direct Stafford loans that an
undergraduate student may borrow in any
academic year (as defined in section
481(a)(2)) or its equivalent shall be
the difference between--
``(aa) the median cost of
college (as defined in section
472A) of the program of study
in which the student is
enrolled; and
``(bb) the sum of the
Federal Pell Grant and Federal
Pell Plus Grant under section
401 awarded to the student for
such academic year,
except that (1) the amount of such
Federal Direct Stafford loans awarded
to the student for such academic year
may not exceed the maximum annual limit
described in section 428(b)(1) that is
applicable to such student; and (2) the
sum of such Federal Direct Stafford
Loans, the amount of such Federal Pell
Grant, Federal Pell Plus Grant, and
other financial assistance (as defined
in section 480(i)) that the student
receives for such academic year may not
exceed the cost of attendance of such
student.
``(II) Unsubsidized loans.--
Notwithstanding any provision of this
part or part B, for any period of
instruction beginning on or after July
1, 2025, the maximum annual amount of
Federal Direct Unsubsidized Stafford
loans that an undergraduate student may
borrow in any academic year (as defined
in section 481(a)(2)) or its equivalent
shall be the difference between--
``(aa) the median cost of
college (as defined in section
472A) of the program of study
in which the student is
enrolled; and
``(bb) the sum of--
``(AA) the amount
of Federal Direct
Stafford loans awarded
to such student for
such academic year; and
``(BB) the amount
of the Federal Pell
Grant and Federal Pell
Plus Grant under
section 401 awarded to
the student for such
academic year,
except that the sum of all
Federal financial aid under
this title and other financial
assistance (as defined in
section 480(i)) that such
student receives for such
academic year may not exceed
the cost of attendance for such
student.
``(ii) Aggregate limits.--Notwithstanding
any provision of this part or part B, for any
period of instruction beginning on or after
July 1, 2025, with respect to an undergraduate
student--
``(I) the maximum aggregate amount
of Federal Direct Stafford loans and
Federal Direct Unsubsidized Stafford
loans that may be borrowed shall be
$50,000;
``(II) the maximum aggregate amount
of Federal Direct Stafford loans that
may be borrowed shall be $23,000; and
``(III) the maximum aggregate
amount of Federal Direct Unsubsidized
Stafford loans that may be borrowed
shall be $50,000.
``(B) Students in a qualifying undergraduate
program.--
``(i) Aggregate limits.--Notwithstanding
the aggregate limits described in subparagraph
(A)(ii), a student enrolled in a qualifying
undergraduate program shall be subject to the
aggregate limits for professional students
described in paragraph (3)(D)(ii).
``(ii) Qualifying undergraduate program
defined.--For purposes of this subparagraph,
the term `qualifying undergraduate program'
means a program of study--
``(I) for which the total tuition
and fees (including the required costs
described in section
484(b)(3)(A)(i)(I)) exceeds the
aggregate limits for undergraduate
students described in subparagraph
(A)(ii);
``(II) that meets certification
requirements of the Federal agency that
directly regulates the program and
provides final licensing and
credentials to students upon
completion; and
``(III) that has had, for the
previous three award years--
``(aa) a verified
completion rate of at least 70
percent, within 150 percent of
the program length of such
program of study; and
``(bb) a verified job
placement rate of at least 70
percent, measured 180 days
after completion.
``(C) All students.--The maximum aggregate amount
of loans made, insured, or guaranteed under this title
to a student shall be $200,000.''.
(3) Institutionally determined limits.--Section 455(a) of
the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is
further amended by adding at the end the following:
``(5) Institutionally determined limits.--
``(A) 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 who is enrolled in a program of study
for a period of instruction beginning on or after July
1, 2024, at that institution, may borrow under this
part for an academic year--
``(i) if the institution can reasonably
demonstrate that outstanding amounts owed of
loans made under this title are or would be
excessive for students who complete such
program, based on the most recently available
data from the College Scorecard (or successor
website of the Department) on--
``(I) the median of the value-added
earnings of students who complete such
program; and
``(II) the median debt owed, and
the repayment rate, on loans made under
this part, of such students;
``(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; or
``(iii) based on the year of the program
for which the student is seeking such loan.
``(B) Application to all students.--Any proration
or limiting of loan amounts under subparagraph (A)
shall be applied in the same manner to all students
enrolled in a program of study.
``(C) Increases for individual students.--Upon the
request of a student whose loan amount for an academic
year has been prorated or limited under subparagraph
(A), 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 paragraph for such academic year.''.
(b) Termination of Authority To Make Federal Direct Plus Loans to
Any Student or Parent Borrower.--Section 455(a) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding at the end the
following:
``(6) Termination of authority to make federal direct plus
loans.--Notwithstanding any provision of this part or part B,
except as provided in paragraph (3)(E), for any period of
instruction beginning on or after July 1, 2025, no Federal
Direct PLUS loans may be made to any parent borrower or
graduate or professional student borrower.''.
SEC. 222. LOAN REPAYMENT.
(a) Repayment Plans.--Section 455(d) of the Higher Education Act of
1965 (20 U.S.C. 1087e(d)) is amended--
(1) in paragraph (1)(D) by inserting ``(including a
repayment assistance plan under 455(e)(9))'' after ``an income
contingent repayment plan''; and
(2) by adding at the end the following:
``(6) Repayment plans for loans made on or after july 1,
2024.--
``(A) Design and selection.--Notwithstanding
paragraph (1), beginning on July 1, 2024, the Secretary
shall offer a borrower of a loan made under this part
on or after July 1, 2024, 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 such loans. The borrower
may choose--
``(i) a standard repayment plan with a
fixed monthly repayment amount paid over a
fixed period of time, not to exceed 10 years;
or
``(ii) a repayment assistance plan under
section 455(e)(9).
``(B) Selection by secretary.--If such borrower
does not select a repayment plan described in
subparagraph (A), the Secretary shall provide the
borrower with the repayment plan described in
subparagraph (A)(i).
``(C) Changes in selection.--
``(i) In general.--Subject to clause (ii),
a borrower may change the borrower's selection
of a repayment plan under subparagraph (A), or
the Secretary's selection of a plan for the
borrower under subparagraph (B), as the case
may be. Nothing in this subsection shall
prohibit the Secretary from encouraging
distressed borrowers from enrolling in the
repayment assistance plan under section
455(e)(9).
``(ii) Same repayment plan required.--All
loans made under this part on or after July 1,
2024, to a borrower shall be repaid under the
same repayment plan under subparagraph (A),
except that the borrower may repay an excepted
PLUS loan or an excepted consolidation loan (as
such terms are defined in section 455(e)(9))
separately from other loans made under this
part to the borrower.
``(D) Repayment after default.--The Secretary may
require a borrower who has defaulted on a loan made
under this part to--
``(i) pay all reasonable collection costs
associated with such loan; and
``(ii) repay the loan pursuant to the
repayment assistance plan under section
455(e)(9).
``(E) Prohibitions.--The Secretary may not--
``(i) authorize a borrower of a loan made
under this part on or after July 1, 2024, to
repay such loan pursuant to a repayment plan
that is not described in clause (i) or (ii) of
subparagraph (A); or
``(ii) carry out or modify a repayment plan
for any loan made under this part on or after
July 1, 2024, that is not described in such
clause (i) or (ii).''.
(b) Repayment Assistance Plan.--Section 455(e) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(e)) is amended by adding at the
end the following:
``(9) Repayment assistance plan.--
``(A) In general.--Notwithstanding any other
provision of this Act, beginning on July 1, 2024, the
Secretary shall carry out a repayment assistance
program that shall have the terms and conditions of an
income-contingent repayment plan described in
paragraphs (1) through (8), except that--
``(i) a borrower of any loan made under
this part (other than an excepted PLUS loan or
excepted consolidation loan), may elect to have
the borrower's aggregate monthly payment for
all such loans not exceed the applicable
monthly payment for the borrower, except that a
borrower may not be precluded from repaying an
amount that exceeds such applicable monthly
payment for any month;
``(ii) the Secretary shall apply the
borrower's monthly payment under this paragraph
first toward interest due on such a loan, next
toward any fees due on the loan, and then
toward the principal of the loan;
``(iii) any principal due and not paid
under clause (ii) shall be deferred;
``(iv) the amount of time the borrower
makes monthly payments under clause (i) may
exceed 10 years;
``(v) notwithstanding paragraph (7), the
Secretary shall repay or cancel any outstanding
balance of principal and interest due on all
loans made under this part (other than excepted
PLUS loans or excepted consolidation loans) to
a borrower--
``(I) who, at any time, elected to
participate in a repayment assistance
plan under clause (i);
``(II) whose final monthly payment
for such loans prior to the loan
cancellation under this clause was made
under such repayment assistance plan;
and
``(III) who has repaid on such
loans (pursuant to a repayment
assistance plan under clause (i), a
standard repayment plan under
subsection (d)(6)(A)(i), or a
combination of any such plan or any of
the repayment plans listed in clause
(ii), (iii), (iv), or (v) of paragraph
(7)(B), or, in the case of a
consolidation loan, pursuant to a
repayment schedule described item
(aa)(BB) of this subclause) an amount
that is equal to--
``(aa)(AA) the total amount
of principal and interest that
the borrower would have repaid
under a standard repayment plan
under paragraph (1)(A) or
(6)(A)(i) of subsection (d),
based on a 10-year repayment
period, when the borrower
entered repayment on such
loans; or
``(BB) in the case of a
Federal Direct Consolidation
Loan, the total amount of
principal and interest that the
borrower would have repaid
under the repayment schedule
established for the loan under
section 428C(c)(2) on the date
on which such loan was made;
plus
``(bb) an amount equal to
the amount of any unpaid
interest that has accrued, but
was not included in the
calculation of the total amount
of principal and interest that
would have been repaid under
the standard repayment plan or
schedule described in item
(aa)--
``(AA) during any
deferment period
described in clause (i)
or (ii) of subsection
(f)(2)(A); or
``(BB) during any
forbearance period
while serving in a
medical or dental
internship or residency
program as described in
section
428(c)(3)(A)(i)(I); and
``(vi) a borrower who is repaying a loan
pursuant to a repayment assistance plan under
clause (i) may elect, at any time, to terminate
repayment pursuant to such plan and repay such
loan under the standard repayment plan under
subsection (d)(6)(A)(i).
``(B) Repayment assistance for distressed
borrowers.--
``(i) Interest subsidy.--For each month for
which a borrower's aggregate monthly payment
under this paragraph is insufficient to pay the
total amount of interest that accrues on a loan
for the month, the amount of interest accrued
and not paid for the month shall be subtracted
from the total amount of interest due on such
loan for the month.
``(ii) Principal subsidy.--For each month
for which a borrower's aggregate monthly
payment under this paragraph repays an amount
due on an individual loan that is less than
twice the total amount of interest that accrues
on such loan for the month, the amount of the
total principal due on such loan shall be
reduced by an amount equal to half of the
monthly payment under this paragraph on such
loan for the month.
``(C) Definitions.--In this paragraph:
``(i) Adjusted gross income.--The term
`adjusted gross income' has the meaning given
the term in section 62 of the Internal Revenue
Code of 1986.
``(ii) Applicable monthly payment.--The
term `applicable monthly payment' means, when
used with respect to a borrower, the amount
obtained by dividing by 12, 10 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)).
``(iii) Excepted consolidation loan.--The
term `excepted Consolidation Loan' means a
Federal Direct Consolidation Loan, if the
proceeds of such loan were used to the
discharge the liability on--
``(I) an excepted PLUS loan; or
``(II) a Federal Direct
Consolidation loan, if the proceeds of
such loan were used to discharge the
liability on an excepted PLUS loan.
``(iv) Excepted plus loan.--The term
`excepted PLUS Loan' has the meaning given the
term in section 493C.''.
SEC. 223. LOAN REHABILITATION.
Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C.
1078-6(a)(5)) is amended by striking ``one time'' and inserting ``two
times''.
SEC. 224. INTEREST CAPITALIZATION.
(a) Federal Plus Loans.--Section 428B(d)(2) of the Higher Education
Act of 1965 (20 U.S.C. 1078-2(d)(2)) is amended to read as follows:
``(2) No capitalization of interest.--Interest on loans
made under this section for which payments of principal are
deferred pursuant to paragraph (1) shall be paid monthly or
quarterly, if agreed upon by the borrower and the lender.''.
(b) Federal Consolidation Loans Deferrals.--Section
428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (20 U.S.C.
1078-3(b)(4)(C)(III)) is amended by striking ``or capitalized,''.
(c) Loan Limits for Unsubsidized Stafford Loans.--Section
428H(d)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-8(d)(5))
is amended by inserting ``before the date of enactment of the College
Cost Reduction Act'' after ``Interest capitalized''.
(d) Unsubsidized Stafford Loans for Middle Income Borrowers.--
Section 428H(e)(2) of the Higher Education Act of 1965 (20 U.S.C. 1078-
8(e)(2)) is amended--
(1) in subparagraph (A), in the matter before clause (i),
by striking ``, if agreed upon by the borrower and the lender''
and all that follows through clause (ii)(IV) and inserting ``be
paid monthly or quarterly, if agreed upon by the borrower and
the lender.'';
(2) by striking subparagraph (B); and
(3) by redesignating subparagraph (C) as subparagraph (B).
(e) Income Contingent Repayment.--Section 455(e)(5) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(e)(5)) is amended by striking
the last sentence and inserting ``No interest may be capitalized on
such loan on or after the date of the enactment of the College Cost
Reduction Act, and the Secretary shall promulgate regulations with
respect to the treatment of accrued interest that is not capitalized''.
(f) Effect of Deferment on Principal and Interest.--Section
455(f)(1)(B) of the Higher Education Act of 1965 (20 U.S.C.
1087e(f)(1)(B)) is amended by striking ``capitalized or''.
(g) Income-Based Repayment Program.--Section 493C(b)(3)(B) of the
Higher Education Act of 1965 (20 U.S.C. 1098e(b)(3)(B)) is amended by
inserting ``shall accrue but not'' before ``be capitalized''.
SEC. 225. ORIGINATION FEES.
(a) Repeal of Origination Fees.--Subsection (c) of section 455 of
the Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to loans made under part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first
disbursement of principal is made, or, in the case of a Federal Direct
Consolidation Loan, the application is received, on or after July 1,
2024.
TITLE III--ACCOUNTABILITY AND STUDENT SUCCESS
PART A--ACCOUNTABILITY
Subpart 1--Department of Education
SEC. 301. AGREEMENTS WITH INSTITUTIONS.
Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d)
is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) by redesignating paragraph (6) as paragraph
(7); and
(C) by inserting after paragraph (5) the following
new paragraph:
``(6) remit annual risk-sharing payments to the Secretary
in accordance with the requirements under subsection (d);
and''; and
(2) by adding at the end the following new subsection:
``(d) Risk-Sharing Requirements.--
``(1) Annual risk-sharing payments required.--Beginning in
award year 2024-2025, each institution of higher education
participating in the direct student loan program under this
part shall, for qualifying student loans, remit to the
Secretary, at such time as the Secretary may specify, an annual
risk-sharing payment for each student cohort of the
institution, based on the non-repayment balance of such cohort
and calculated in accordance with paragraph (3).
``(2) Student cohorts.--
``(A) Cohorts established.--For each institution of
higher education, the Secretary shall establish student
cohorts, beginning with award year 2023-2024, as
follows:
``(i) Completing student cohort.--For each
program of study at such institution, a student
cohort comprised of all students who received
Federal financial assistance under this title
and who completed such program during such
award year.
``(ii) Undergraduate non-completing student
cohort.--For such institution, a student cohort
comprised of all students who received Federal
financial assistance under this title, who were
enrolled in the institution during the previous
award year in a program of study leading to an
undergraduate credential, and who at the time
the cohort is established--
``(I) have not completed such
program of study; and
``(II) are not enrolled at the
institution in any program of study
leading to an undergraduate credential.
``(iii) Graduate non-completing student
cohort.--For each program of study leading to a
graduate credential at such institution, a
student cohort comprised of all students who
received Federal financial assistance under
this title, who were enrolled in such program
during the previous award year, and who at the
time the cohort is established--
``(I) have not completed such
program of study; and
``(II) are not enrolled in such
program.
``(B) Qualifying student loan.--For the purposes of
this subsection, the term `qualifying student loan'
means a Federal Direct loan, including a Federal Direct
Consolidation loan, made under this part that--
``(i) was made to a student included in a
student cohort of an institution; and
``(ii) except in the case of a loan
described in clause (i) or (ii) of subparagraph
(C), is not included in any other student
cohort of any institution of higher education.
``(C) Special circumstances.--
``(i) Multiple credentials.--In the case of
a student who completes two or more programs of
study during the same award year, each
qualifying student loan of the student shall be
included in the student cohort for each of such
program of study for such award year.
``(ii) Treatment of certain consolidation
loans.--A Federal Direct Consolidation loan
made under this title shall not be considered a
qualifying student loan for a student cohort
for an award year if all of the loans included
in such consolidation loan are attributable to
another student cohort.
``(iii) Consolidation after inclusion in a
student cohort.--If a qualifying student loan
is consolidated into a consolidation loan under
this title after such qualifying student loan
has been included in a student cohort, the
percentage of the consolidation loan that was
attributable to such student cohort at the time
of consolidation shall remain attributable to
the student cohort for the life of the
consolidation loan.
``(3) Calculation of risk-sharing payments.--
``(A) Risk-sharing payment formula.--For each
student cohort of an institution of higher education
established under this subsection, the annual risk-
sharing payment for such cohort shall be equal to--
``(i) the risk-sharing percentage
determined for the cohort in accordance with
subparagraph (B); multiplied by
``(ii) the non-repayment balance for the
cohort for the award year, determined in
accordance with subparagraph (C).
``(B) Risk-sharing percentage.--The risk-sharing
percentage of a student cohort of an institution shall
be determined by the Secretary when the cohort is
established, shall remain constant for the life of the
student cohort, and shall be determined as follows:
``(i) Completing student cohorts.--The
risk-sharing percentage of a completing student
cohort shall be equal to the percentage
determined by--
``(I) subtracting from one the
quotient of--
``(aa) the median value-
added earnings (as defined in
section 103) of students who
completed such program of study
in the most recent award year
for which data is available, as
reported on the College
Scorecard at the time the
cohort was established; divided
by
``(bb) the median total
price charged to students
included in such cohort; and
``(II) multiplying the difference
determined under subclause (I) by 100.
``(ii) Special circumstances for completing
student cohorts.--
``(I) High-risk cohorts.--
Notwithstanding clause (i), if the
median value-added earnings of a
completing student cohort under clause
(i)(I)(aa) is negative, the risk-
sharing percentage of the student
cohort shall be 100 percent.
``(II) Low-risk cohorts.--
Notwithstanding clause (i), if the
median value-added earnings of a
completing student cohort under clause
(i)(I)(aa) exceeds the median total
price of such cohort under clause
(i)(I)(bb), the risk-sharing percentage
of the student cohort shall be 0
percent.
``(iii) Non-completing student cohorts.--
The risk-sharing percentage of a non-completing
student cohort shall be determined based on the
most recent data available in the award year in
which the cohort is established, and--
``(I) for an undergraduate non-
completing student cohort, shall be
equal to the percentage of
undergraduate students who received
Federal financial assistance under this
title at such institution who--
``(aa) did not complete an
undergraduate program of study
at the institution within 150
percent of the program length
of such program; or
``(bb) only in the case of
a two-year institution, did
not, within 6 years after first
enrolling at the two-year
institution, complete a program
of study at a four-year
institution for which a
bachelor's degree (or
substantially similar
credential) is awarded; and
``(II) for a graduate non-
completing student cohort, shall be
equal to the percentage of students who
received Federal financial assistance
under this title at the institution for
the applicable graduate program of
study and who did not complete such
program of study within 150 percent of
the program length.
``(C) Non-repayment loan balance.--
``(i) In general.--For each award year, the
Secretary shall determine the non-repayment
loan balance for such award year for each
student cohort of an institution of higher
education by calculating the sum of--
``(I) for loans in such cohort in
repayment status that are being repaid
under a standard 10-year repayment plan
under section 455(d)(1), the difference
between the total amount of payments
due from all borrowers on such loans
during such year, as required under
section 455(d)(1)(A), and the total
amount of payments made by all such
borrowers on such loans during such
year; plus
``(II) for loans in such cohort in
repayment status that are being repaid
under the repayment assistance plan
under section 455(e)(9)--
``(aa) the difference
between the total amount of
payments due from all borrowers
on such loans during such year,
as required under section
455(e)(9), and the total amount
of payments made by all such
borrowers on such loans during
such year; plus
``(bb) the total amount of
repayment assistance for such
loans under such section
455(e)(9) during such year,
including the unpaid principal
reduced, and interest
subtracted, by the Secretary.
``(ii) Special circumstances.--For the
purpose of calculating the non-repayment loan
balance of student cohorts under this
paragraph, the Secretary shall--
``(I) for each qualifying student
loan in a student cohort that is
included in another student cohort
because the student who borrowed such
loan completed two or more programs of
study during the same award year, the
total amount of repayment assistance
and amounts due but not paid for such
qualifying student loan shall be
divided equally among each of the
student cohorts in which such loan is
included; and
``(II) for each consolidation loan
in a student cohort--
``(aa) determine the
percentage of the outstanding
principal balance of the
consolidation loan attributable
to such student cohort--
``(AA) at the time
of that loan was
included in such
cohort, in the case of
a loan consolidated
before inclusion in
such cohort; or
``(BB) at the time
of consolidation, in
the case of a loan
consolidated after
inclusion in such
cohort; and
``(bb) include in the
calculations under clause (i)
for such student cohort only
the percentage of the total
amount of repayment assistance
and amounts due but not paid
for the consolidation loan for
such year that is equal to the
percentage of the consolidation
loan determined under item
(aa).
``(D) Total price.--With respect to a student who
received Federal financial assistance under this title
and who completes a program of study, the term `total
price' means the total amount, before Federal financial
assistance under this title was applied, a student was
required to pay to complete the program of study. A
student's total price shall be calculated by the
Secretary as the difference between--
``(i) the total amount of tuition and fees
(including the required costs described in
section 484(b)(3)(A)(i)(I)) that were charged
to such student before the application of any
Federal financial assistance provided under
this title; minus
``(ii) the total amount of grants and
scholarships described in section 480(i)awarded
to such student from non-Federal sources for
such program of study.
``(4) Notification and remittance.--Beginning with the
first award year for which risk-sharing payments are required
under this subsection, and for each succeeding award year, the
Secretary shall--
``(A) notify each institution of higher education
of the amounts and due dates of each annual risk-
sharing payment calculated under paragraph (3) for each
student cohort of the institution within 30 days of
calculating such amounts; and
``(B) require the institution to remit such
payments within 90 days of such notification.
``(5) Penalty for late payments.--
``(A) Three-month delinquency.--If an institution
fails to remit to the Secretary a risk-sharing payment
for a student cohort as required under this subsection
within 90 days of receiving notification from the
Secretary in accordance with paragraph (4), the
institution shall pay to the Secretary, in addition to
such risk-sharing payment, interest on such payment, at
a rate that is the average rate applicable to the loans
in such student cohort.
``(B) Twelve-month delinquency.--If an institution
fails to remit to the Secretary a risk-sharing payment
for a student cohort as required under this subsection,
plus interest owed in under subparagraph (A), within 12
months of receiving notification from the Secretary in
accordance with paragraph (4), the institution shall be
ineligible to make direct loans to any student enrolled
in the program of study for which the institution has
failed to make the risk-sharing payments until such
payment is made.
``(C) Eighteen-month delinquency.--If an
institution fails to remit to the Secretary a risk-
sharing payment for a student cohort as required under
this subsection, plus interest owed under subparagraph
(A), within 18 months of receiving notification from
the Secretary in accordance with paragraph (4), the
institution shall be ineligible to make direct loans or
award Federal Pell grants under section 401 to any
student enrolled in the institution until such payment
is made.
``(D) Two-year delinquency.--If an institution
fails to remit to the Secretary a risk-sharing payment
for a student cohort as required under this subsection,
plus interest owed under subparagraph (A), within 2
years of receiving notification from the Secretary in
accordance with paragraph (4), the institution shall be
ineligible to participate in any program under this
title for a period of not less than 10 years.
``(6) Relief for voluntary cessation of federal direct
loans for a program of study.--The Secretary shall, upon the
request of an institution that voluntarily ceases to make
Federal direct loans to students enrolled in a specific program
of study, reduce the amount of the annual risk-sharing payment
owed by the institution for each student cohort associated with
such program by 50 percent if the institution assures the
Secretary that the institution will not make Federal direct
loans to any student enrolled in such program of study (or any
substantially similar program of study) for a period of not
less than 10 award years, beginning with the first award year
that begins after the date on which the Secretary reduces such
risk-sharing payment.
``(7) Reservation of funds for promise grants.--
Notwithstanding any other provision of law, the Secretary shall
reserve the funds remitted to the Secretary as risk-sharing
payments in accordance with this subsection, and such funds
shall be made available to the Secretary only for the purpose
of awarding PROMISE grants in accordance with subpart 4 of part
A of this title.''.
SEC. 302. REGULATORY RELIEF.
(a) 90/10.--
(1) Regulation repealed.--Section 668.28 of title 34, Code
of Federal Regulations (relating to the 90/10 rule), as added
or amended by the final regulations published by the Department
of Education in the Federal Register on October 28, 2022 (87
Fed. Reg. 65426 et seq.), is repealed and will have no force or
effect.
(2) Amendments.--Section 487 of the Higher Education Act of
1965 (20 U.S.C. 1094) is amended--
(A) in subsection (a), by striking paragraph (24);
(B) by striking subsection (d); and
(C) by redesignating subsections (e) through (j) as
subsections (d) through (i), respectively.
(b) Financial Value Transparency and Gainful Employment.--
(1) Regulation repealed.--Sections 600.10, 600.21, 668.2,
668.13, 668.43, 668.91, 668.402 through 668.409 (excluding
section 668.408), and 668.601 through 668.606 of title 34, Code
of Federal Regulations (relating to financial value
transparency and gainful employment), as added or amended by
the final regulations published by the Department of Education
in the Federal Register on October 10, 2023 (88 FR 70004 et
seq.), are repealed and will have no force or effect.
(2) Prohibition.--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.).
(c) Changes in Ownership.--
(1) Regulation repealed.--Sections 600.2, 600.4, 600.20,
600.21, and 600.31 of title 34, Code of Federal Regulations
(relating to changes in ownership), as added or amended by the
final regulations published by the Department of Education in
the Federal Register on October 28, 2022 (87 Fed. Reg. 65426 et
seq.), are repealed and will have no force or effect.
(2) Amendments.--Section 498(i) of the Higher Education Act
of 1965 (20 U.S.C. 1099c(i)) is amended--
(A) in the subsection heading, by inserting ``and
Proposed Changes of Ownership'' after ``Ownership'';
(B) in paragraph (1)--
(i) by striking ``(1) An eligible
institution'', and inserting the following:
``(1)(A) An eligible institution'';
(ii) by striking ``the requirements of
section 102 (other than the requirements in
subsections (b)(5) and (c)(3))'' and inserting
``the applicable requirements of section 102 or
103(13)''; and
(iii) by adding at the end the following:
``(B)(i) Prior to a change in ownership resulting
in a change of control, an institution may seek a
pretransaction determination about whether the
institution will meet the applicable requirements of
section 102 or 103(13) and this section after such
proposed change in ownership by submitting to the
Secretary a materially complete pretransaction review
application.
``(ii) In reviewing applications submitted under
clause (i), the Secretary shall only provide a
comprehensive review of each such application, and may
not provide an abbreviated or partial review.
``(iii) If an institution submits a materially
complete pretransaction review application at least 90
days prior to the transaction and the Secretary
approves the application, the subsequent change in
ownership application shall also be approved and the
institution shall be certified as meeting the
requirements for such transaction, provided that the
institution--
``(I) complies with the applicable terms of
this section; and
``(II) the transaction resulting in a
change of control does not differ materially in
its terms from the transaction proposed in the
pretransaction review application.'';
(C) in paragraph (2)--
(i) in subparagraph (E), by striking ``or''
at the end;
(ii) in subparagraph (F), by striking the
period at the end and inserting ``; or''; and
(iii) by adding the following at the end:
``(G) in the case of a proprietary institution of higher
education, a conversion to a public or other nonprofit
institution of higher education.'';
(D) by adding at the end the following:
``(5)(A) Subject to subparagraph (B), when any institution submits
an application for a change in ownership resulting in a change in
control under this section or submits a pretransaction review
application under paragraph (1)(B) (other than in the case of a
conversion transaction), the institution shall be required to pay to
the Secretary an administrative fee that shall--
``(i) be in an amount equal to 0.15 percent of the total
institutional revenue derived from this title by such
institution for the most fiscal year for which data is
available; and
``(ii) be used exclusively for expenses related to the
processing of such application, and be available to the
Secretary without further appropriation, exclusively for
expenses related to the processing of such approval or
application.
``(B) In the case of a proprietary institution submitting an
application for conversion, or a pretransaction review application for
conversion, the institution shall be required to pay to the Secretary
an administrative fee that shall--
``(i) be in an amount equal to 0.30 percent of the total
institutional revenue derived from this title by such
institution for the most fiscal year for which data is
available; and
``(ii) be used exclusively for expenses related to the
processing of such application, and of which--
``(I) 50 percent shall be available to the
Secretary without further appropriation, exclusively
for expenses related to the processing of such
application; and
``(II) 50 percent shall be remitted by the
Secretary to the Commissioner of the Internal Revenue,
and shall be available, without further appropriation,
to the Commissioner of Internal Revenue exclusively for
purposes of determining whether the institution seeking
such conversion or pretransaction review is an
institution exempt from tax and is otherwise in
compliance with applicable requirements of the Internal
Revenue Code of 1986.
``(C) An institution that pays a fee under subparagraph (A) or (B)
for a pretransaction application with respect to a proposed transaction
shall not be required to pay another fee under such subparagraph for a
change in ownership application with respect to such transaction.
``(D) In no case may any fee remitted under subparagraph (A) or (B)
exceed $120,000 for any transaction (or pretransaction) application,
nor may the Secretary require an institution that has paid a fee under
subparagraph (B) to pay an additional fee under subparagraph (A).
``(6)(A) The Secretary shall approve or deny a materially complete
application (including pretransaction reviews and conversion
applications) submitted under this section as soon as practicable and
not later than the 90-day period beginning on the date of receipt of
such an application, except that in a case in which the Secretary
determines, on a nondelegable basis, that good cause exists to not make
the determination during such 90-day period, the Secretary shall notify
the institution in writing detailing the reasons for a good cause
extension.
``(B) If the Secretary fails to approve or deny a materially
complete application during the period described in subparagraph (A)
and does not find good cause for extension, the materially complete
application shall be deemed approved.
``(C) In no case may the Secretary grant a good cause extension
under this section to an institution for more than one month at a time,
or for a total of more than more than 12 months.
``(D) To ensure timely submission of all relevant documentation,
the Secretary may deny an application if an institution does not make a
good faith effort to submit to the Secretary, in a timely manner--
``(i) all relevant documentation; or
``(ii) a materially complete application.
``(E)(i) Upon approving or denying an application under this
paragraph, the Secretary shall publish in the Federal Register the
reasoning for such approval or denial, including--
``(I) a copy of the approval or denial letter sent to the
institution; and
``(II) any analysis regarding how the Secretary determined
under paragraph 7(A)(iii) that a director of the institution
was an interested or disinterested party to the transaction.
``(ii) The Secretary shall not publish under clause (i) any
information that is otherwise exempt from disclosure under section 552
of title 5, United States Code (relating to the Freedom of Information
Act), including trade secrets and commercial or financial information
that is privileged or confidential.
``(7)(A) In the case of a proprietary institution that subsequent
to the transaction would be owned and operated by an entity (in this
paragraph referred to as the `buyer') seeking to be recognized as a
public or other nonprofit institution, the buyer shall meet the
definition of a nonprofit institution under section 103(13) if--
``(i) the buyer pays no more than fair market value for any
assets of the proprietary institution;
``(ii) the buyer pays no more than fair market value for
any service or lease contracts, including such service and
lease contracts provided by the entity selling the proprietary
institution; and
``(iii) to prevent self-dealing in the case where one or
more individuals with a substantial ownership or controlling
interests in the proprietary institution will also have
substantial or controlling interests in the institution seeking
to be recognized as a public or other nonprofit institution
(meaning that one or more individuals are on both sides of the
transaction), the change of control transaction, and any
substantial asset acquisition, service, or lease agreements
with the proprietary institution shall be approved by a
disinterested committee of directors of the entity that seeks
to be recognized as a public or other nonprofit institution.
``(B) For the purposes of this paragraph, parties to the
transaction are entitled to a rebuttable presumption that the assets,
lease contracts, and service contracts that are part of the transaction
are purchased at fair market value if--
``(i) the acquiring entity pays no more than fair market
value for such assets, lease contracts, or service contracts;
and
``(ii) the value of the assets, lease contracts, or service
contracts are evaluated by at least one independent third-party
entity hired by parties on both sides of the transaction.
``(8)(A) An institution that has been approved for conversion by
the Secretary shall be subject to a monitoring period for a 5-year
period beginning on the day after the date of such approval. In
conducting the monitoring of the institution under this paragraph, the
Secretary--
``(i) shall only conduct monitoring to ensure that the
institution is in compliance with the requirements of section
103(13) and paragraph (7) of this subsection; and
``(ii) may require the institution to submit regular
reports or conduct audits of such institution relating to such
compliance.
``(B) Each institution that is subject to the monitoring period
under this paragraph shall remit an annual fee to the Secretary--
``(i) in an amount equal to 0.15 percent of the total
revenue derived from this title by such institution for the
most recent fiscal year for which data is available; and
``(ii) that shall be exclusively for expenses related to
monitoring of the institution for the period described in
subparagraph (A)--
``(I) of which 50 percent shall be used by the
Secretary, without further appropriation, exclusively
for expenses related to monitoring of the institution
during such period; and
``(II) of which 50 percent shall be remitted by the
Secretary to the Commissioner of Internal Revenue, to
be available to such Commissioner, without further
appropriation, exclusively for monitoring compliance
with the Internal Revenue Code of such institution
during such period.
``(C) An institution may not be subject to an annual fee under
subparagraph (B) for monitoring related to a conversion that exceeds
$60,000.
``(D) If the Secretary determines that an institution should be
subject to the monitoring under this paragraph beyond the 5-year period
described in subparagraph (A), the Secretary shall provide the reasons
justifying an extension in writing to the institution (and in the
Federal Register) at least 30 days before the expiration of such
period.
``(E) Any institution that is subject to monitoring under this
paragraph may seek a waiver to be exempt from such monitoring
(including the annual fee under subparagraph (B)) on an annual basis
for any year during the monitoring period and the Secretary shall grant
such waiver if there is no ongoing contractual or financial
relationship between the institution and the former entity or
individuals that previously owned the institution. The Secretary may
grant a waiver for more than 1 year in the case where the entity that
formerly owned the proprietary institution has closed or no longer
exists and the Secretary determines the institution is not at risk of
violating the requirements of section 103(13) or paragraph (7) of this
subsection.
``(9) Any institution that submits an application for conversion
shall not promote or market itself, in any manner, as a public or other
nonprofit institution of higher education unless--
``(A) the Secretary has provided final approval of the
conversion of the institution to a public or other nonprofit
institution of higher education under this section;
``(B) an accrediting agency or association recognized by
the Secretary pursuant to section 496 has approved such public
or nonprofit status of the institution;
``(C) the State has given final approval to the institution
as a public or nonprofit institution of higher education, as
applicable; and
``(D) in the case of an institution seeking nonprofit
status, the Commissioner of Internal Revenue has approved the
institution as tax exempt pursuant to the Internal Revenue Code
of 1986.
``(10) Not later than 270 days after the date of enactment of the
College Cost Reduction Act, and periodically thereafter, the Secretary
shall publish (and update as necessary) in the Federal Register--
``(A) descriptions of the documents and materials the
Secretary expects or requires institutions of higher education
to submit (including any standardized forms) as part of any
pretransaction application or change in ownership application
under this section, including a description of what the
Secretary considers to be a materially complete application;
and
``(B) after at least a 30-day notice and comment period,
responses to any public comments received with respect to such
descriptions or updates to such descriptions.
``(11) In a case in which the Secretary requests a document under
this section as part of a pretransaction or change in ownership
application that is not described in the Federal Register under
paragraph (10), the Secretary shall--
``(A) substantiate, in writing to the institution, the
reasons why the Secretary is requesting such documents; and
``(B) publish such reasons in the Federal Register,
including whether the Secretary may request other institutions
that submit applications under this section to produce similar
documentation.
``(12)(A) Not later than 18 months after the date of enactment of
the College Cost Reduction Act, and annually thereafter, the Secretary
shall submit a report to authorizing committees, and post such report
on a publicly available website regarding implementation of the
amendments made to this section by such Act, including the following
information:
``(i) The mean and median length of time taken by the
Secretary to review applications under this section during the
preceding 12-month period.
``(ii) The number of applications approved or denied during
the preceding 12-month period.
``(iii) For any application not processed during the 90-day
period beginning on the date of receipt of the application for
which the Secretary found good cause under paragraph (6)(A) to
extend the deadline in which the application shall be
processed, a copy of the letter sent to the institution
explaining why the Secretary believed good cause existed for
such extension.
``(iv) For any application not processed during such 90-day
period, which was deemed to be automatically approved by the
requirements of this section under paragraph (6)(B), the name
of each institution involved and an explanation for why the
application was not processed in a timely manner.
``(v) Any legislative suggestions the Secretary may have to
improve the application or monitoring process under this
section.
``(B) If the Secretary fails to submit a report under this
paragraph by not later than 90 days after the deadline for such
submission under subparagraph (A), the Secretary may not, for the 12-
month period following such failure, spend the fees remitted by
institutions under this section or remit such fees to the Commissioner
unless Congress provides for such use by further appropriation.
``(13) For the purposes of this subsection, the term `conversion'
means any transaction under which--
``(A) a proprietary institution is reorganized and seeks
recognition as a public or other nonprofit institution; or
``(B) the control of a proprietary institution is
transferred as a result of a sale, donation, or other method to
an entity that seeks certification under this section as a
public or other nonprofit institution.''.
(3) Application.--The amendments made by this section shall
be apply with respect to applications submitted for change of
control or conversion submitted on or after January 1, 2023.
(4) Report.-- Not later than 5 years after the date of
enactment of this Act, the Comptroller General shall submit 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, a report on the implementation of
the amendments made by this subsection, including
recommendations to improve--
(A) the application process under section 498(i) of
the Higher Education Act of 1965 (20 U.S.C. 1099c(i)),
as amended by paragraph (2), for institutions of higher
education seeking a change in ownership resulting in a
change in control; or
(B) the monitoring process under such section for
institutions of higher education that have recently
converted from being recognized as a proprietary
institution to a public or other nonprofit institution.
(d) Financial Responsibility.--
(1) Regulation repealed.--Sections 668.15, 668.23, 668.171,
and 668.174 through 668.177 of title 34, Code of Federal
Regulations (relating to financial responsibility), as added or
amended by the final regulations published by the Department of
Education in the Federal Register on October 31, 2023 (87 Fed.
Reg. 74568 et seq.), are repealed and will have no force or
effect.
(2) Amendments.--Section 498(c) of the Higher Education Act
of 1965 (20 6 U.S.C. 1099c(c)) is amended--
(A) by redesignating paragraphs (3), (4), (5), and
(6) as paragraphs (4), (5), (6), and (7), respectively;
(B) in paragraph (2)--
(i) by striking ``paragraph (1), if'' and
inserting ``paragraph (1), the Secretary shall
prescribe criteria regarding ratios that aid in
the determination financial responsibility.
Such ratios shall be first issued in draft form
to the institution to allow for adequate
review, consisting of an appeals process, by
such institutions of higher education. If'';
and
(ii) by striking ``prescribed by the
Secretary regarding ratios'' and inserting
``prescribed by the Secretary regarding the
final ratios'';
(C) by inserting after paragraph (2) the following:
``(3) Notwithstanding paragraph (2), the Secretary shall take into
account an institution's current total financial circumstances,
including any subsequent change in the institution's overall fiscal
health based on the standards in paragraph (2), when making a
determination of its ability to meet the standards herein required
before any subsequent action is taken under paragraph (4). If an
institution meets the standards in paragraph (2), the institution shall
be seen as financially responsible.'';
(D) in subparagraph (C) of paragraph (4), as so
redesignated, by striking ``establishes to the
satisfaction of the Secretary, with'' and inserting
``establishes, with'';
(E) in paragraph (5), as so redesignated--
(i) in subparagraph (A), by inserting
``and'' after the semicolon at the end;
(ii) in subparagraph (B), by striking ``;
and'' and inserting a period; and
(iii) by striking subparagraph (C);
(F) in paragraph (6), as so redesignated, by
striking ``(3)(C)'' and inserting ``(4)(C)''; and
(G) by adding at the end the following new
paragraph:
``(8) Not later than 18 months after the date of enactment of the
College Cost Reduction Act, the Secretary shall pursue a process to
update the ratios regarding financial responsibility as identified in
paragraph (2). The Secretary shall report the revised ratios to--
``(A) the Committee on Education and the Workforce of the
House of Representatives; and
``(B) the Committee on Health, Education, Labor, and
Pensions of the Senate.''.
(e) Incentive Compensation; Third Party Servicer.--
(1) Amendments.--Section 487(a)(20) (20 U.S.C. 1094(a)(20))
is amended to read as follows:
``(20) The institution will not provide any commission,
bonus, or other incentive payment based directly or indirectly
on success in securing enrollments or financial aid to any
persons or entities engaged in any student recruiting or
admission activities, or in making decisions regarding the
award of student financial assistance, except that this
paragraph shall not apply--
``(A) to the recruitment of foreign students
residing in foreign countries who are not eligible to
receive Federal student assistance; or
``(B) to a third party where--
``(i) the third party is providing the
institution recruiting or admissions activities
as part of a larger bundle of services not
covered by this paragraph and which may include
marketing or advertising activities that
broadly disseminate or distribute widely
available information;
``(ii) the third party does not provide any
commission, bonus, or other incentive-based
payments to its employees or subcontractors who
are providing services to the institution
covered in this paragraph; and
``(iii) the third party is not awarding or
disbursing Federal financial aid awards.''.
(2) Definition.--Section 481(c) (20 U.S.C. 1088(c)) is
amended to read as follows:
``(c) Third Party Servicer.--
``(1) For purposes of this title, the term `third party
servicer'--
``(A) means any individual, any State, or any
private, for-profit or nonprofit organization, which
enters into a contract with--
``(i) any eligible institution of higher
education to administer, through either manual
or automated processing, any aspect of such
institution's student assistance programs under
this title; or
``(ii) any guaranty agency, or any eligible
lender, to administer, through either manual or
automated processing, any aspect of such
guaranty agency's or lender's student loan
programs under part B of this title, including
originating, guaranteeing, monitoring,
processing, servicing, or collecting loans; and
``(B) does not include any individual, any State,
or any private, for-profit or nonprofit organization,
which conducts activities or interacts with prospective
or enrolled students for the purposes of--
``(i) marketing or recruiting, such as
soliciting potential enrollments through the
dissemination of information and advertising;
``(ii) assisting with the completion of
applications for enrollment, such as screening
pre-enrollment information and offering
admission counseling;
``(iii) administering ability-to-benefit
tests or establishing any aspect of an eligible
career pathway program;
``(iv) conducting activities for the
retention of students, such as monitoring
academic engagement and conducting outreach to
student regarding attendance; and
``(v) providing instructional content, such
as evaluating course completion, delivering
mandatory tutoring, assessing student learning,
including through electronic means, or
developing curricula or course materials.
``(2) The Secretary shall not regulate on the definition of
a `third party servicer'.''.
(f) Other Repeals.--The following regulations (including any
supplement or revision to such regulations) are repealed and shall have
no legal effect:
(1) Closed school discharges.--Sections 674.33(g),
682.402(d), and 685.214 of title 34, Code of Federal
Regulations (relating to closed school discharges), as added or
amended by the final regulations published by the Department of
Education in the Federal Register on November 1, 2022 (87 Fed.
Reg. 65904 et seq.).
(2) Borrower defense to repayment.--Section 685.401 of
title 34, Code of Federal Regulations (relating to borrower
defense to repayment), as added or amended by the final
regulations published by the Department of Education in the
Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et
seq.).
(3) Pre-dispute arbitration.--Sections 668.41, 685.300, and
685.304 of title 34, Code of Federal Regulations (relating to
pre-dispute arbitration), as added or amended by the final
regulations published by the Department of Education in the
Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et
seq.).
(4) False certification.--Sections 682.402(e), 685.215(c),
and 685.215(d) of title 34, Code of Federal Regulations
(relating to false certification), as added or amended by the
final regulations published by the Department of Education in
the Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et
seq.).
(5) Administrative capability.--Sections 668.16 of title
34, Code of Federal Regulations (relating to administrative
capability), as added or amended by the final regulations
published by the Department of Education in the Federal
Register on October 31, 2023 (87 Fed. Reg. 74568 et seq.).
(6) Certification procedures.--Sections 668.13, 668.14, and
668.43 of title 34, Code of Federal Regulations (relating to
certification procedures) as added or amended by the final
regulations published by the Department of Education in the
Federal Register on October 31, 2023 (87 Fed. Reg. 74568 et
seq.).
(7) Ability to benefit.--Sections 668.2, 668.32, 668.156,
and 668.157 of title 34, Code of Federal Regulations (relating
to ability to benefit) as added or amended by the final
regulations published by the Department of Education in the
Federal Register on October 31, 2023 (87 Fed. Reg. 74568 et
seq.).
(8) Personal liability.--The electronic announcement titled
``Establishing Personal Liability Requirements for Financial
Losses Related to the Title IV Programs'' (GENERAL-23-11,
published on March 1, 2023).
(g) Effect of Repeal.--Any regulations repealed by subsections (c)
through (e) that were in effect on June 30, 2023, are restored and
revived as if the repeal of such regulations under such subsections had
not taken effect.
(h) Prohibition.--The Secretary of Education may not implement any
rule, regulation, policy, or executive action specified in this section
(or a substantially similar rule, regulation, policy, or executive
action) unless authority for such implementation is explicitly provided
in an Act of Congress.
(i) Program Review and Data.--Section 498A (20 U.S.C. 1099c-1) is
amended by adding at the end the following:
``(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.''.
SEC. 303. LIMITATION ON AUTHORITY OF SECRETARY TO PROPOSE OR ISSUE
REGULATIONS AND EXECUTIVE ACTIONS.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by inserting after section 492 the following:
``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR
ISSUE REGULATIONS AND EXECUTIVE ACTIONS.
``(a) Draft Regulations.--Beginning after the date of enactment of
this section, a draft regulation implementing this title (as described
in section 492(b)(1)) that is determined by the Secretary to be
economically significant shall be subject to the following requirements
(regardless of whether negotiated rulemaking occurs):
``(1) The Secretary shall determine whether the draft
regulation, if implemented, would result in an increase in a
subsidy cost.
``(2) If the Secretary determines under paragraph (1) that
the draft regulation would result in an increase in a subsidy
cost, then the Secretary may take no further action with
respect to such regulation.
``(b) Proposed or Final Regulations and Executive Actions.--
Beginning after the date of enactment of this section, the Secretary
may not issue a proposed rule, final regulation, or executive action
implementing this title if the Secretary determines that the rule,
regulation, or executive action--
``(1) is economically significant; and
``(2) would result in an increase in a subsidy cost.
``(c) Relationship to Other Requirements.--The analyses required
under subsections (a) and (b) shall be in addition to any other cost
analysis required under law for a regulation implementing this title,
including any cost analysis that may be required pursuant to Executive
Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and
review), Executive Order 13563 (76 Fed. Reg. 3821; relating to
improving regulation and regulatory review), or any related or
successor orders.
``(d) Definition.--In this section, the term `economically
significant', when used with respect to a draft, proposed, or final
regulation or executive action, means that the regulation or executive
action is likely, as determined by the Secretary--
``(1) to have an annual effect on the economy of
$100,000,000 or more; or
``(2) adversely to affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or
tribal governments or communities.''.
SEC. 304. OFFICE OF FEDERAL STUDENT AID.
(a) Federal Preemption.--Section 456 (20 U.S.C. 1087f) is amended
by adding at the end the following:
``(c) Federal Preemption.--
``(1) In general.--Covered activities 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;
``(B) requirements or restrictions on the content,
time, quantity, or frequency of communications with
borrowers, endorsers, or references with respect to
such loans; or
``(C) any other requirement relating to the
servicing or collection of a loan made under this
title.
``(2) Covered activities defined.--In this subsection, the
term `covered activities' means any of the following
activities, as carried out by a qualified entity:
``(A) Origination of a loan made under this title.
``(B) Servicing of a loan made under this title.
``(C) Collection of a loan made under this title.
``(D) Any other activity related to the activities
described in subparagraphs (A) through (C).''.
(b) Procurement Flexibility.--Section 142 (20 U.S.C. 1018a) is
amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Guidance to Student Loan Servicers.--
``(1) In general.--In notifying a student loan servicer of
a final contract modification (as such term is defined in
section 2.101 of title 48, Code of Federal Regulations) that
instructs such loan servicer to perform a function that is new
or different from a function such servicer performs pursuant to
an existing contract, the PBO shall, not later than 30 days
before such contract change takes effect, provide such
servicers with written guidance in the form of--
``(A) a change order (as such term is defined in
section 2.101 of title 48, Code of Federal
Regulations);
``(B) a dear colleague letter; or
``(C) an electronic announcement.
``(2) Non-binding directives.--A student loan servicer that
is notified of a final contract modification described in
paragraph (1) and receives guidance in a form other than a form
described in paragraph (1) (including through emails or phone
calls) shall not be subject to such contract modification.''.
Subpart 2--Accreditors
SEC. 311. ACCREDITING AGENCY RECOGNITION.
(a) Criteria Required.--Section 496(a) of the Higher Education Act
of 1965 (20 U.S.C. 1099b(a)) is amended--
(1) in the matter preceding paragraph (1), in the first
sentence, by striking ``or training'' and inserting ``skills
development'';
(2) by amending paragraph (1) to read as follows:
``(1) the accrediting agency or association (other than an
accrediting agency or association described in paragraph
(2)(D)) shall be a State or national agency or association and
shall demonstrate the ability to operate as an institutional or
programmatic accrediting agency or association within the State
or nationally, as appropriate;'';
(3) in paragraph (2)--
(A) in subparagraph (A)--
(i) in clause (i), by striking
``principal''; and
(ii) in clause (ii), by striking ``its
principal'' and inserting ``a''; and
(B) in subparagraph (C), by inserting ``or'' at the
end; and
(C) by adding at the end the following:
``(D) is an entity (such as an industry-specific
quality assurance entity) that has been--
``(i) determined by a State to be a
reliable authority as to the quality of
education or skills development offered in such
State for the purposes of this Act; and
``(ii) designated (in accordance with
subsection (b)(1)) by such State as an
accrediting agency or association with respect
to such State for such purposes;'';
(4) in paragraph (3)--
(A) by amending subparagraph (A) to read as
follows:
``(A) subparagraph (A), (C), or (D) of paragraph
(2), then such agency or association is--
``(i) distinctly incorporated or organized;
and
``(ii) both administratively and
financially separate from, and independent of,
any related, associated, or affiliated trade
association or membership organization, by
ensuring that--
``(I) the members of the board or
governing body of the accrediting
agency or association are not elected
or selected by the board or chief
executive officer (or the
representative of such board or
officer) of any related, associated, or
affiliated trade association or
membership organization;
``(II) among the membership of the
board or governing body of the
accrediting agency or association--
``(aa) if such board or
body is comprised of 5 or fewer
members, there is a minimum of
one public member who
represents business and who is
not a member of any related,
associated, or affiliated trade
association or membership
organization; and
``(bb) if such board or
body is comprised of 6 or more
members, there is a minimum of
1 such public member for every
6 members;
``(III) guidelines are established
for such members to avoid conflicts of
interest, including specific guidelines
to ensure that no such member is an
employee of any institution accredited
by the agency or association or has a
financial interest in any such
institution;
``(IV) dues to the accrediting
agency or association are paid
separately from any dues paid to any
related, associated, or affiliated
trade association or membership
organization; and
``(V) the budget of the accrediting
agency or association is developed,
decided, and maintained by the
accrediting agency or association
without any review by, consultation
with, or approval by any related,
associated, or affiliated trade
association or membership
organization;'';
(B) by striking ``or'' at the end of subparagraph
(B); and
(C) by striking subparagraph (C);
(5) in paragraph (4)--
(A) in subparagraph (A)--
(i) by inserting ``(in the manner described
in subparagraph (B))'' after ``religious
missions''; and
(ii) by striking ``and'' at the end; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) such accrediting agency or association
consistently applies and enforces standards that
respect the stated religious mission of an institution
of higher education by--
``(i) basing decisions regarding
accreditation and preaccreditation on the
standards of accreditation of such agency or
association; and
``(ii) not using as a negative factor the
institution's religious mission based policies,
decisions, and practices in the areas covered
by subparagraphs (B), (C), (D), (E), and (F) of
paragraph (5), except that the agency or
association may require that the institution's
or a program of study's curricula include all
core components required by the agency or
association that are not inconsistent with the
institution's religious mission; and
``(C) 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, except that--
``(i) in a case in which the instruction
delivery model allows for the separation of the
student from the instructor, the agency or
association shall not be required to have
separate standards, procedures, or policies for
the evaluation of the quality of any
instruction delivery model or method in order
to meet the requirements of this subparagraph;
and
``(ii) in the case in which the instruction
delivery model allows for the separation of the
student from the instructor--
``(I) the agency or association
requires the institution to have
processes through which the institution
establishes that the student who
registers in a course or program is the
same student who participates in the
program (including, to the extent
practicable, the testing or other
assessments required under the
program), completes the program, and
receives the academic credit; and
``(II) the agency or association
requires that any process used by an
institution to comply with the
requirement under clause (I) does not
infringe upon student privacy and is
implemented in a manner that is
minimally burdensome to the student;'';
and
(6) in paragraph (5)--
(A) by amending subparagraph (A) to read as
follows:
``(A) success with respect to student achievement
outcomes in relation to the institution's mission and
to the programs the institution offers, or the mission
of a specific degree, certificate, or credential
program, which may include different standards for
different institutions or programs, and which shall
include--
``(i) standards for consideration of the
median total price charged to students for a
program of study in relation to the median
value-added earnings of students who completed
such program;
``(ii) standards for consideration of
learning outcomes measures (such as competency
attainment and licensing examination passage
rates);
``(iii) standards for consideration of
labor market outcomes measures (such as
employer satisfaction surveys, employability
measures, earnings gains, employment rates, or
other similar approaches); and
``(iv) standards for consideration of
student success outcomes measures (such as
completion rates, retention rates, and loan
repayment rates);'';
(B) by amending subparagraph (I) to read as
follows:
``(I) record of student complaints received by, or
available to, the agency or association, and a process
for resolving complaints received by the institution;
and''; and
(C) in subparagraph (J), by inserting ``and the
median total price charged to students for a program of
study in relation to the median value-added earnings of
students who completed such program provided by the
Secretary'' after ``student loan default rate data
provided by the Secretary''.
(b) Secretarial Requirements and Authority.--Subsection (b) of
section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b) is
amended to read as follows:
``(b) Secretarial Requirements and Authority.--
``(1) State designated accrediting agency.--
``(A) Approval of state plans.--The Secretary
shall--
``(i) approve a State's designation of an
entity as an accrediting agency or association
for the purposes described in subsection
(a)(2)(D) for a 5-year period, beginning not
later than 30 days after receipt of the plan
from such State with respect to such
designation, if such plan includes each of the
elements listed in subparagraph (B);
``(ii) submit to the State and the
authorizing committees, and make publicly
available the Secretary's response to the State
with respect to such plan, including whether
the plan includes each of the elements listed
in subparagraph (B); and
``(iii) if a State's designation of an
entity as an accrediting agency or association
is approved pursuant to this subparagraph,
publish in the Federal Register with a 30-day
public comment period--
``(I) the plan submitted by such
State with respect to such designation;
and
``(II) the Secretary's response to
such plan.
``(B) Required plan elements.--The required
elements of a State plan submitted under subparagraph
(A) with respect to the designation of an entity as an
accrediting agency or association are as follows:
``(i) A description of the process the
State used to select the entity for such
designation.
``(ii) A justification of the State's
decision to select the entity for such
designation.
``(iii) A description of any requirements
(in addition to the requirements of this
section), that the State required the entity to
comply with as a condition of receiving and
maintaining such designation.
``(iv) A copy of the standards, policies,
and procedures of the entity that the State
considered in selecting the entity for such
designation.
``(v) The State's assessment of how the
standards for accreditation of the entity will
be effective in meeting the requirements of
subsection (a)(5).
``(vi) Evidence that at least one other
State has determined that such entity is a
reliable authority as to the quality of
education offered for the purposes of this Act.
``(vii) An assurance that the State will
comply with the monitoring requirements
described in subparagraph (C).
``(C) State monitoring.--
``(i) In general.--A State that has
designated an entity as an accrediting agency
or association for the purposes described in
subsection (a)(2)(D) shall submit to the
Secretary, and to the State authorizing entity,
as appropriate, a report at the end of the 5-
year period for which the entity has received
such designation, which shall include, with
respect to each postsecondary education program
or institution that has been accredited by such
entity during such period, and disaggregated by
type of credential, certification, or degree--
``(I) the number and percentage of
students who have successfully obtained
a postsecondary education credential,
certification, or degree offered by
such program or institution; and
``(II) the number and percentage of
students who were enrolled and did not
successfully obtain such a credential,
certification, or degree within 150
percent of the program length.
``(ii) Counting transfer students.--For
purposes of clause (i)(I), a student shall be
counted as obtaining a credential,
certification, or degree offered by a program
or institution that was accredited by the
entity during the period for which the report
under this subparagraph is being submitted, if
the student obtains such credential,
certification, or degree after transferring to
another institution during such period.
``(2) Authority to provide an accelerated path to
recognition.--With respect to a prospective accrediting agency
or association that submits to the Secretary an application for
initial recognition under this Act, the Secretary may provide
such recognition to such agency or association within 2 years
after receipt of such application, if such application--
``(A) demonstrates that the agency or association--
``(i) has at least one year of experience
in making accreditation or preaccreditation
decisions; and
``(ii) has policies in place that meet all
the criteria under subsection (a) for
recognition covering the range of the specific
degrees, certificates, institutions, or program
of study for which the agency or association
seeks such recognition; and
``(B) provides an assurance that if the agency or
association receives such recognition, the agency or
association will submit to the Secretary monitoring
reports regarding accreditation or preaccreditation
decisions, as appropriate.
``(3) Development of common terminology.--Not later than 18
months after the date of enactment of the College Cost
Reduction Act, the Secretary shall--
``(A) convene a panel of experts to develop common
terminology for accrediting agencies or associations to
use in making accrediting decisions with respect to
program of study or institutions, such as a common
understanding of monitoring, warning, show cause, and
other relevant statuses, as appropriate; and
``(B) publish the recommendations for such common
terminology in the Federal Register with a 60-day
public comment period.''.
(c) Operating Procedures Required.--
(1) On-site inspections and reviews.--Paragraph (1) of
section 496(c) (20 U.S.C. 1099b(c)) is amended--
(A) 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 authorized under subsection
(p))'' after ``intervals''; and
(B) by striking ``, including those regarding
distance education''.
(2) Mechanism to identify institutions and programs
experiencing difficulties.--Section 496(c) (20 U.S.C. 1099b(c))
is further amended--
(A) by redesignating paragraphs (2) through (9) as
paragraphs (3) through (10), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) develops a policy process to identify any institution
or program of study accredited by the agency or association
that is not meeting the standards for accreditation of the
agency or association, with a focus on the standards assessing
an institution's or program of study's student achievement
outcomes described in subsection (a)(5)(A), and other
indicators, which shall include--
``(A) not less than annually, evaluating the extent
to which such an identified institution or program of
study continues to be in compliance with such standards
or other indicators; and
``(B) as appropriate, requiring the institution or
program of study to submit a plan, on an annual basis,
to the accrediting agency or association to--
``(i) address and remedy performance issues
with respect to such compliance; and
``(ii) ensure that such plan is
successfully implemented.''.
(3) Procedures with respect to substantive changes.--
Paragraph (5) of section 496(c) (20 U.S.C. 1099b(c)) (as
redesignated by paragraph (2)(A)) is amended to read as
follows:
``(5) establishes and applies or maintains policies, which
ensure that any substantive change to the educational mission,
program of study, or program of study 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,
including the acquisition or addition of any
other institution or new location where more
than 50 percent of a program is offered;
``(iii) the addition of program of study at
a higher credential level from the credential
level previously accredited by the agency or
association; or
``(iv) the entering into a contract under
which an institution or organization not
certified to participate in programs under this
title offers more than 25 percent but less than
50 percent of the instruction of an educational
program of the institution with such
accreditation or preaccreditation status;''.
(4) Public availability.--Section 496(c) (20 U.S.C.
1099b(c)) is further amended--
(A) in paragraph (8) (as redesignated by paragraph
(2)(A))--
(i) in the matter preceding subparagraph
(A), by inserting ``, on the agency's or
association's website,'' after ``public''; and
(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'';
(B) in paragraph (9) (as so redesignated), by
striking ``and'' at the end;
(C) in paragraph (10)(B) (as so redesignated), by
inserting before the period at the end the following:
``, including an assurance that the institution does
not deny a transfer of credit based solely on the
accreditation of the institution at which the credit
was earned''; and
(D) by adding at the end the following:
``(11) such agency or association shall make publicly
available, on the agency or association's website, a list of
the institutions of higher education or program of study
accredited by such agency or association, which includes, with
respect to each such institution or program of study--
``(A) the year accreditation was granted;
``(B) the most recent date of an award of
accreditation or reaccreditation; and
``(C) the anticipated date of the institution's
next evaluation for reaccreditation.''.
(5) Prohibition on litmus tests.--Section 496(c) (20 U.S.C.
1099b(c)) is further amended by adding at the end the
following:
``(12) confirms that the standards for accreditation of the
agency or association do not--
``(A) except as provided in subparagraph (B)--
``(i) require, encourage, or coerce any
institution to--
``(I) support, oppose, or commit to
supporting or opposing--
``(aa) a specific partisan,
political, or ideological
viewpoint or belief or set of
such viewpoints or beliefs; or
``(bb) a specific viewpoint
or belief or set of viewpoints
or beliefs on social, cultural,
or political issues; or
``(II) support or commit to
supporting the disparate treatment of
any individual or group of individuals
on the basis of any protected class
under Federal civil rights law, except
as required by Federal law or a court
order; or
``(ii) assess an institution's or program
of study's commitment to any ideology, belief,
or viewpoint;
``(B) prohibit an institution--
``(i) from having a religious mission or
from requiring an applicant, student, employee,
or independent contractor (such as an adjunct
professor) of such an institution to--
``(I) provide or adhere to a
statement of faith; or
``(II) adhere to a code of conduct
consistent with the stated religious
mission of such institution or the
religious tenets of such organization;
or
``(ii) from requiring an applicant,
student, employee, or contractor to take an
oath to uphold the Constitution of the United
States; or
``(C) require, encourage, or coerce an institution
of higher education to violate any right protected by
the Constitution;''.
(6) Prohibition on assessment of elected or appointed
officials.--Section 496(c) (20 U.S.C. 1099b(c)) is further
amended by adding at the end the following:
``(13) confirms that the standards for accreditation of the
agency or association do not assess the roles (including
actions or statements) of elected and appointed State and
Federal officials and legislative bodies;''.
(7) Prohibition of practices that drive credential
inflation.--Section 496(c) (20 U.S.C. 1099b(c)) is further
amended by adding at the end the following:
``(14) confirms that the standards for accreditation of the
agency or association do not require an institution to develop
a program of study leading to a degree, certificate, or
recognized postsecondary credential that is not in response to
the needs of an industry or occupation.''.
(d) Length of Recognition.--Subsection (d) of section 496 (20
U.S.C. 1099b) is amended--
(1) by striking ``No accrediting'' and inserting the
following:
``(1) In general.--Except as otherwise provided in
paragraph (2), no accrediting''; and
(2) by adding at the end the following new paragraph:
``(2) Longer recognition authorized for certain agencies
and associations.--Notwithstanding paragraph (1), an
accrediting agency or association that has been recognized by
the Secretary for the purpose of this Act for a period of 5
years, may be recognized for an additional period of up to 3
years, if the Secretary determines, based on the performance of
the accrediting agency or association during its recognition
period under this Act, that the accrediting agency or
association--
``(A) has the capability to evaluate the quality of
institutions or program of study; and
``(B) has maintained compliance with the criteria
for accrediting agencies or associations required by
this section.''.
(e) Limitation on Scope of Criteria.--Section 496 (20 U.S.C. 1099b)
is further amended by amending subsection (g) to read as follows:
``(g) Limitation on Scope of Criteria.--
``(1) In general.--The Secretary shall not establish
criteria for accrediting agencies or associations that are not
required by this section.
``(2) Institutional eligibility.--An institution of higher
education shall be eligible for participation in programs under
this title if the institution is in compliance with the
standards of its accrediting agency or association that assess
the institution in accordance with subsection (a)(5),
regardless of any additional standards adopted by the agency or
association for purposes unrelated to participation in programs
under this title.''.
(f) Change of Accrediting Agency.--Section 496 (20 U.S.C. 1099b) is
further amended by amending subsection (h) to read as follows:
``(h) Change of Accrediting Agency or Association.--
``(1) In general.--The Secretary shall recognize the
accreditation of any otherwise eligible institution or program
of study if the institution (or program) is in the process of
changing its accrediting agency or association, unless the
institution (or program) is subject to one or more covered
actions.
``(2) Covered action defined.--For purposes of this
subsection, the term `covered action' means one or more of the
following, when used with respect to an institution or program
of study:
``(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 or program of
study.
``(C) A pending or final action brought by a
recognized accrediting agency or association to
suspend, revoke, withdraw, or terminate the
institution's or program of study's accreditation or
preaccreditation.
``(D) Probation or an equivalent status imposed on
the institution or program of study by a recognized
accrediting agency or association.
``(3) Institutions of higher education not subject to
covered actions.--An institution (or program of study) that is
not subject to a covered action described in paragraph (1) and
that desires to change its accrediting agency or association
for a reason not related to any such covered action (such as
compliance with State law) may make such a change without the
approval of the Secretary, as long as the institution (or
program) and the new accrediting agency or association of the
institution (or program), not later than 30 days after the
accreditation decision by such agency or association, notify
the Secretary, in writing, of the effective date of the
institution's (or program's) accreditation by such agency or
association.''.
(g) Dual Accreditation Rule.--Section 496 (20 U.S.C. 1099b) is
further amended by amending subsection (i) to read as follows:
``(i) Dual Accreditation Rule.--
``(1) Recognition by secretary.--The Secretary shall
recognize the accreditation of any otherwise eligible
institution of higher education if the institution of higher
education is accredited, as an institution, by more than one
accrediting agency or association.
``(2) Designation by institution.--If the institution is
accredited, as an institution, by more than one accrediting
agency or association, the institution--
``(A) shall designate which agency's or
association's accreditation shall be utilized in
determining the institution's eligibility for
participation in programs under this Act; and
``(B) may change this designation at the end of the
institution's period of recognition.''.
(h) Religious Institutions Rule.--Section 496 (20 U.S.C. 1099b) is
further amended by amending subsection (k) to read as follows:
``(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 102 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) Administrative complaint for failure to respect
religious mission.--
``(A) In general.--
``(i) Institution.--If an institution of
higher education believes that an adverse
action of an accrediting agency or association
fails to respect the institution's religious
mission in violation of subsection (a)(4)(B),
the institution--
``(I) may file a complaint with the
Secretary to review the adverse action
of the agency or association; and
``(II) prior to filing such
complaint, shall notify the Secretary
and the agency or association of an
intent to file such complaint not later
than 30 days after--
``(aa) receiving the
adverse action from the agency
or association; or
``(bb) determining that
discussions with or the
processes of the agency or
association to remedy the
failure to respect the
religious mission of the
institution will fail to result
in the withdrawal of the
adverse action by the agency or
association.
``(ii) Accrediting agency or association.--
Upon notification of an intent to file a
complaint and through the duration of the
complaint process under this paragraph, the
Secretary and the accrediting agency or
association shall treat the accreditation
status of the institution of higher education
as if the adverse action for which the
institution is filing the complaint had not
been taken.
``(B) Complaint.--Not later than 45 days after
providing notice of the intent to file a complaint, the
institution shall file the complaint with the Secretary
(and provide a copy to the accrediting agency or
association), which shall include--
``(i) a description of the adverse action;
``(ii) how the adverse action fails to
respect the institution's religious mission in
violation of subsection (a)(4)(B); and
``(iii) any other information the
institution determines relevant to the
complaint.
``(C) Response.--
``(i) In general.--The accrediting agency
or association shall have 30 days from the date
the complaint is filed with the Secretary to
file with the Secretary (and provide a copy to
the institution) a response to the complaint,
which response shall include--
``(I) how the adverse action is
based on a violation of the agency or
association's standards for
accreditation; and
``(II) how the adverse action does
not fail to respect the religious
mission of the institution and is in
compliance with subsection (a)(4)(B).
``(ii) Burden of proof.--
``(I) In general.--The accrediting
agency or association shall bear the
burden of proving that the agency or
association has not taken the adverse
action as a result of the institution's
religious mission, and that the action
does not fail to respect the
institution's religious mission in
violation of subsection (a)(4)(B), by
showing that the adverse action does
not impact the aspect of the religious
mission claimed to be affected in the
complaint.
``(II) Insufficient proof.--Any
evidence that the adverse action
results from the application of a
neutral and generally applicable rule
shall be insufficient to prove that the
action does not fail to respect an
institution's religious mission.
``(D) Additional institution response.--The
institution shall have 30 days from the date on which
the agency or association's response is filed with the
Secretary to--
``(i) file with the Secretary (and provide
a copy to the agency or association) a response
to any issues raised in the response of the
agency or association; or
``(ii) inform the Secretary and the agency
or association that the institution elects to
waive the right to respond to the response of
the agency or association.
``(E) Secretarial action.--
``(i) In general.--Not later than 30 days
of receipt of the institution's response under
subparagraph (D) or notification that the
institution elects not to file a response under
such subparagraph--
``(I) the Secretary shall review
the materials to determine if the
accrediting agency or association has
met its burden of proof under
subparagraph (C)(ii)(I); or
``(II) in a case in which the
Secretary fails to conduct such
review--
``(aa) the Secretary shall
be deemed as determining that
the adverse action fails to
respect the religious mission
of the institution; and
``(bb) the accrediting
agency or association shall be
required to reverse the action
immediately and take no further
action with respect to such
adverse action.
``(ii) Review of complaint.--In reviewing
the complaint under clause (i)(I)--
``(I) the Secretary shall consider
the institution to be correct in the
assertion that the adverse action fails
to respect the institution's religious
mission and shall apply the burden of
proof described in subparagraph
(C)(ii)(I) with respect to the
accrediting agency or association; and
``(II) if the Secretary determines
that the accrediting agency or
association fails to meet such burden
of proof--
``(aa) the Secretary shall
notify the institution and the
agency or association that the
agency or association is not in
compliance with subsection
(a)(4)(B), and that such agency
or association shall carry out
the requirements of item (bb)
to be in compliance with
subsection (a)(4)(B); and
``(bb) the agency or
association shall reverse the
adverse action immediately and
take no further action with
respect to such adverse action.
``(iii) Final departmental action.--The
Secretary's determination under this
subparagraph shall be the final action of the
Department on the complaint.
``(F) Rule of construction.--Nothing in this
paragraph shall prohibit--
``(i) an accrediting agency or association
from taking an adverse action against an
institution of higher education for a failure
to comply with the agency or association's
standards of accreditation as long as such
standards are in compliance with subsection
(a)(4)(B) and any other applicable requirements
of this section; or
``(ii) an institution of higher education
from exercising any other rights to address
concerns with respect to an accrediting agency
or association or the accreditation process of
an accrediting agency or association.
``(G) Guidance.--
``(i) In general.--The Secretary may only
issue guidance under this paragraph that
explains or clarifies the process for providing
notice of an intent to file a complaint or for
filing a complaint under this paragraph.
``(ii) Clarification.--The Secretary may
not issue guidance, or otherwise determine or
suggest, when discussions to remedy the failure
by an accrediting agency or association to
respect the religious mission of an institution
of higher education referred to in subparagraph
(A)(i)(II)(bb) have failed or will fail.
``(3) Religious mission defined.--In this Act, the term
`religious mission'--
``(A) means a published institutional mission that
is approved by the governing body of an institution of
higher education and that includes, refers to, or is
predicated upon religious tenets, beliefs, or
teachings; and
``(B) may be reflected in any of the institution's
policies, decisions, or practices 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).''.
(i) Independent Evaluation.--Section 496(n)(3) (20 U.S.C.
1099b(n)(3)) is amended by striking the last sentence.
(j) Regulations.--Section 496(o) (20 U.S.C. 1099b(o)) is amended 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''.
(k) Risk-Based Review Processes or Procedures; Waiver.--Section 496
(20 U.S.C. 1099b) is further amended--
(1) by striking subsections (p) and (q); and
(2) 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 shall establish risk-based 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) under
which the agency or association--
``(A) creates a system for designating each
institution of higher education and program of study
that the agency or association evaluates, such as
through using peer benchmarking to understand an
institution's or program of study's performance in
comparison with its peers (which may include past
performance with respect to meeting the accrediting
agency or association's standards, including the
standards relating to the student achievement outcomes
described in subclauses (I) through (IV) of subsection
(a)(5)(A));
``(B) requires for each institution and program of
study designated as high-risk, in accordance with the
accrediting agency or association's system in
subparagraph (A), to submit the annual plans described
in subsection (c)(2)(B) to the agency or association
that address the performance issues of such institution
or program of study that resulted in such designation;
``(C) with respect to institutions or program of
study meeting or exceeding performance as described in
subparagraph (A), reduces any compliance requirements
with the standards of accreditation of the agency that
are not assessing an institution or program of study
under subsection (a)(5), such as on-site inspections;
and
``(D) may require an institution or program of
study that has declining performance (such as an
institution or program of study with a high-risk
designation under subparagraph (B)), which has not
improved as required by the annual plan submitted under
subsection (c)(2)(B), to take actions to avoid or
minimize the risks that may lead to revocation of
accreditation (such as limiting certain program of
study enrollment or recommending to the Secretary to
limit funds under this title for such an institution or
program).
``(2) Prohibition.--Any risk-based review process or
procedure established pursuant to this subsection 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.''.
(l) Total Price Defined.--Section 496 (20 U.S.C. 1099b) is further
amended by adding at the end the following:
``(q) Total Price Defined.--For purposes of this section, the term
`total price' has the meaning given such term in section 454(d)(3).''.
SEC. 312. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY (NACIQI).
Section 114 (20 U.S.C. 1011c) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating
subparagraphs (A) through (C) as clauses (i) through
(iii), respectively, and adjusting the margins
accordingly;
(B) by striking ``Individuals'' and inserting the
following:
``(A) In general.--Individuals'';
(C) in clause (ii), as so redesignated, by striking
``and training'' and inserting ``skills development'';
(D) by adding at the end the following:
``(B) Disqualification.--No individual may be
appointed as a member of the Committee if such
individual has a significant conflict of interest, such
as being a current regulator (such as a State
authorizer) that would require the individual to
frequently be recused from serving as a member of the
Committee.''; and
(E) in paragraph (3), by striking ``Except as
provided in paragraph (5), the term'' and inserting
``The term'';
(2) in subsection (c)--
(A) in paragraph (4), by adding ``and'' at the end;
(B) in paragraph (5), by striking ``; and'' at the
end and inserting a period; and
(C) by striking paragraph (6);
(3) in subsection (d)(2), by inserting at the end the
following: ``The name of any member of the Committee who has
been recused with respect to an agenda item of the meeting
shall be included in such agenda.'';
(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, 2021''
and inserting ``September 30, 2028''.
SEC. 313. ALTERNATIVE QUALITY ASSURANCE EXPERIMENTAL SITE INITIATIVE.
Section 487A of the Higher Education Act of 1965 (20 U.S.C. 1094a)
is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the end the
following:
``(c) Alternative Quality Assurance Experimental Site Initiative.--
``(1) Experimental site authorized.--The Secretary shall
select, in accordance with paragraph (4), eligible entities
that voluntarily seek to participate in an Alternative Quality
Assurance experimental site initiative for a duration of 5
years and receive the waivers or other flexibility described in
paragraph (5) to evaluate whether the eligible entities, during
such 5-year period, can maintain high student achievement
outcomes while participating in programs under this title
without being accredited by an accrediting agency or
association recognized under section 496.
``(2) Eligible entity defined.--For purposes of this
subsection, an eligibility entity means--
``(A) an institution of higher education (as
defined in section 102); or
``(B) an educational provider that--
``(i) is not an institution of higher
education;
``(ii) does not receive funding under this
Act;
``(iii) is not accredited by an accrediting
agency or association for the purposes of this
title; and
``(iv) is authorized to operate in the
State in which the provider is located.
``(3) Application.--
``(A) In general.--Each eligible entity desiring to
participate in the experimental site initiative under
this subsection shall submit an application to the
Secretary, at such time and in such manner as the
Secretary may require, which shall contain the
information described in subparagraph (B). The
Secretary may not require any information in such an
application that is not described in subparagraph (B).
``(B) Contents.--Each application under paragraph
(1) shall include--
``(i) a description of which program of
study offered at the eligible entity will be
included in the experimental site initiative,
including--
``(I) in the case of an eligible
entity that is an institution of higher
education, an attestation that such
program meets the standards of
accreditation of the institution's
accrediting agency or association
described in clauses (i) through (iv)
of section 496(a)(5)(A) (including the
standard requiring that the median
value-added earnings of students who
complete the program are greater than
the median total price charged to
students for the program); and
``(II) in the case of an eligible
entity defined in paragraph (2)(B),
documentation and verified
administrative data that the program
meets standards similar to the
standards of accreditation referenced
in subclause (I);
``(ii) a justification of the reason why
the eligible entity seeks to receive the waiver
described in paragraph (5)(A), including
estimates or documentation of the potential
savings to the entity of receiving such waiver;
and
``(iii) a description of how the eligible
entity plans to share the financial risk with
the Secretary of receiving the waivers
described in paragraph (5), such as by--
``(I) providing matching non-
Federal funds to the Secretary to cover
the cost of at least half of the
expected disbursements under this title
to the students that enroll in such
program for the first year of the
experiment;
``(II) providing a letter of credit
to the Secretary to cover the cost
described in subclause (I); or
``(III) requesting to be placed on
a reimbursement system of payment.
``(4) Selection.--No later than 6 months after the
experimental site initiative is announced, the Secretary shall
select eligible entities to participate in the initiative based
on the applications submitted under paragraph (3). In making
such selections, the Secretary--
``(A) shall consider--
``(i) the number and quality of
applications;
``(ii) each applicant's ability to
effectively share the financial risk as
required under paragraph (3)(B)(iii); and
``(iii) in the case of an applicant that is
an institution of higher education, the
applicant's history of compliance with the
requirements of this Act;
``(B) shall ensure that the selected eligible
entities represent a variety of eligible entities with
respect to size, mission, and geographic distribution;
``(C) shall ensure that the number of eligible
entities selected that are institutions of higher
education described in paragraph (2)(B) is equal to the
number of eligible entities selected that are
educational providers described in paragraph (2)(B);
and
``(D) may not select any eligible entity whose
approval to operate in a State is at risk.
``(5) Waivers.--The Secretary is authorized to waive, for
any eligible entity participating in the experimental site
initiative under this subsection--
``(A) any requirements conditioning an eligible
entity's eligibility to participate in programs under
this title to being accredited by an accrediting agency
or association recognized under section 496; and
``(B) any other requirements of this title
determined necessary by the Secretary to carry out such
initiative (including requirements related to the award
process and disbursement of student financial aid, or
other management procedures or processes), except that
the Secretary shall not waive any provisions with
respect to award rules (other than an award rule
related to an experiment in modular or compressed
schedules), grant and loan maximum award amounts, and
need analysis requirements, unless the waiver of such
provisions is authorized by another provision under
this title.
``(6) Review and evaluation.--
``(A) In general.--The Secretary shall review and
evaluate the experimental site initiative conducted
under this subsection, including by evaluating, with
respect to each participating program of each
participating eligible entity, whether--
``(i) the median value-added earnings of
students who complete the program of study are
greater than the median total price charged to
students for such program; and
``(ii) the program of study is meeting
other student achievement outcomes (such as
outcomes based on standards of accreditation
described in section 496(a)(5)(A)), as
appropriate for the program.
``(B) Recommendations.--If, based on such
evaluation, the Secretary determines that participating
eligible entities were able to meet the requirement of
subparagraph (A)(i) and the other student achievement
outcomes evaluated by the Secretary under subparagraph
(A)(ii), the Secretary shall submit to the authorizing
committees recommendations regarding amendments to this
Act that will streamline and enhance the quality
assurance process of institutions of higher education,
and educational providers described in paragraph
(2)(B).''.
PART B--STUDENT SUCCESS
SEC. 321. POSTSECONDARY STUDENT SUCCESS GRANTS.
Part B of title VII of the Higher Education Act of 1965 (20 U.S.C.
1138 et seq.) is amended--
(1) in section 741--
(A) by striking subsections (b), (c), (e), and (f);
(B) by redesignating subsection (d) as subsection
(c); and
(C) by inserting after subsection (a) the
following:
``(b) Grants.--
``(1) Definitions.--In this subsection:
``(A) Completion rate.--The term `completion rate'
means--
``(i) the percentage of students from an
initial cohort enrolled at an institution of
higher education that is a 2-year institution
who have graduated from the institution or
transferred to a 4-year institution of higher
education; or
``(ii) the percentage of students from an
initial cohort enrolled at an institution of
higher education in the State that is a 4-year
institution who have graduated from the
institution.
``(B) Eligible entity.--The term `eligible entity'
means--
``(i) an institution of higher education;
``(ii) a partnership between a nonprofit
educational organization and an institution of
higher education; and
``(iii) a consortium of institutions of
higher education.
``(C) Eligible indian entity.--The term `eligible
Indian entity' means the entity responsible for the
governance, operation, or control of a Tribal College
or University.
``(D) 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.
``(E) Evidence tiers.--
``(i) Evidence tier 1 reform or practice.--
The term `evidence tier 1 reform or practice'
means a reform or practice that prior research
suggests has promise for the purpose of
successfully improving student achievement or
attainment for high-need students.
``(ii) Evidence tier 2 reform or
practice.--The term `evidence tier 2 reform or
practice' means a reform or practice described
in clause (i), or other practice meeting
similar criteria, that measures impact and cost
effectiveness of student success activities,
and, through rigorous evaluation (including
through the use of existing administrative
data, as applicable), has been found to be
successfully implemented.
``(iii) Evidence tier 3 reform or
practice.--The term `evidence tier 3 reform or
practice' means a reform or practice described
in clause (ii), or other practice meeting
similar criteria, that has been found to
produce sizable, important impacts on student
success and--
``(I) determines whether such
impacts can be successfully reproduced
and sustained over time; and
``(II) identifies the conditions in
which such reform or practice is most
effective.
``(F) First generation college student.--The term
`first generation college student' has the meaning
given the term in section 402A(h) of the Higher
Education Act of 1965 (20 U.S.C. 1070a-11(h)).
``(G) High-need student.--The term `high-need
student' means--
``(i) a student from low-income background;
``(ii) first generation college students;
``(iii) caregiver students;
``(iv) students with disabilities;
``(v) students who stopped out before
completing;
``(vi) reentering justice-impacted
students; and
``(vii) military-connected students.
``(H) Secretary.--The term `Secretary' means the
Secretary of Education.
``(I) Tribal college or university.--The term
`Tribal College or University' has the meaning given
the term in section 316(b) of the Higher Education Act
of 1965 (20 U.S.C. 1059c(b)).
``(2) Reservation of funds for eligible indian entities.--
From the total amount appropriated to carry out this subsection
for a fiscal year, the Secretary shall reserve 2 percent for
grants to eligible Indian entities to increase participation
and completion rates of high-need students.
``(3) Authorization of postsecondary student success
competitive grants.--
``(A) Grant authorization.--For each of fiscal
years 2025 through 2030, the Secretary shall award, on
a competitive basis, grants to eligible entities to
provide student services to increase participation,
retention, and completion rates of high-need students.
``(B) Application.--An eligible entity desiring a
grant under this section shall submit an application to
the Secretary at such time, in such manner, and
containing the information required under subparagraph
(C).
``(C) Contents.--An application submitted under
this paragraph shall include the following:
``(i) A plan to increase, with respect to
all students enrolled at the institution of
higher education, attainment and completion
rates or graduation rates, including--
``(I) a description of which
evidence tiers would be met by the
evidence-based reforms or practices;
and
``(II) a particular focus on
serving high-need students through
student services and collaboration
among 2-year programs, 4-year programs,
and workforce systems.
``(ii) Annual benchmarks for student
outcomes with respect to evidence-based reforms
or practices.
``(iii) A plan to evaluate the evidence-
based reforms or practices carried out pursuant
to a grant received under this subsection.
``(iv) Rates of enrolled students who
received a Federal Pell Grant under section
401.
``(v) Demographics of enrolled students,
including high-need students.
``(vi) A description of how the eligible
entity will, directly or in collaboration with
institutions of higher education or nonprofit
organizations, use the grant funds to implement
1 or more of the following evidence-based
reforms or practices:
``(I) Providing comprehensive
academic, career, and student services,
which may include mentoring, advising,
or case management services.
``(II) Providing accelerated
learning opportunities, which may
include dual or concurrent enrollment
programs and early college high school
programs.
``(III) Reforming course scheduling
or credit-awarding policies.
``(IV) Improving transfer pathways
between the institution of higher
education, or eligible Indian entity,
and other institutions of higher
education.
``(vii) A description of how the evidence-
based reforms or practices carried out pursuant
to a grant under this subsection will be
sustained once the grant expires.
``(D) Evidence-based student success programs.--
From the total amount appropriated to carry out this
subsection for a fiscal year and not reserved under
paragraph (4), the Secretary shall reserve not less
than 20 percent to award grants to eligible entities
with applications that propose to include reforms or
practices--
``(i) at least 1 of which is a tier 3
reform or practice; and
``(ii) the rest of which are tier 1 or tier
2 reforms or practices.
``(E) Required use of funds.--An eligible entity
that receives a grant under this section shall use the
grant funds to carry out the plans submitted pursuant
to subparagraph (C) and for evidence-based reforms or
practices for improving retention and completion rates
of students that may include the following:
``(i) Student services to support
retention, completion, and success, which may
include--
``(I) faculty and peer counseling;
``(II) use of real-time data on
student progress;
``(III) improving transfer student
success; and
``(IV) incentives for students to
re-enroll or stay on track.
``(ii) Direct student support services,
including a combination of--
``(I) tutoring, academic supports,
and enrichment services; and
``(II) emergency financial
assistance.
``(iii) Efforts to prepare students for a
career, which may include--
``(I) career coaching, career
counseling and planning services, and
efforts to lower student to advisor
ratios;
``(II) networking and work-based
learning opportunities to support the
development of skills and professional
relationships;
``(III) utilizing career pathways;
and
``(IV) boosting experiences
necessary to obtain and succeed in
high-wage, high-skilled, (as described
in section 122 of the Carl D. Perkins
Career and Technical Education Act of
2006 (20 U.S.C. 2342)) or in-demand
sectors or occupations (as defined in
section 3(23) of the Workforce
Innovation and Opportunity Act (29
U.S.C. 3102(23)).
``(iv) Efforts to recruit and retain
faculty and other instructional staff.
``(F) Permissive use of funds.--From the total
amount appropriated to carry out this subsection for a
fiscal year, and not reserved under paragraph (4) or
subparagraph (D), the Secretary may set aside--
``(i) not more than 5 percent for
administration, capacity building, research,
evaluation, and reporting; and
``(ii) not more than 2 percent for
technical assistance to eligible entities.
``(G) Evaluations.--
``(i) In general.--For the purpose of
improving the effectiveness of the evidence-
based reforms or practices carried out by
eligible entities pursuant to a grant under
this subsection, the Secretary shall make
grants to or enter into contracts with one or
more organizations to--
``(I) evaluate the effectiveness of
such reforms or practices; and
``(II) disseminate information on
the impact of such reforms or practices
in increasing completion and retention
activities of students, as well as
other appropriate measures.
``(ii) Issues to be evaluated.--The
evaluations required under clause (i) shall
measure the effectiveness of the evidence-based
reforms or practices carried out by eligible
entities pursuant to a grant under this
subsection in--
``(I) whether such eligible entity
implemented the plans, and carried out
the activities, described in
subparagraph (C); and
``(II) comparing the completion and
retention rates of students who
participated in such reforms or
practices with the rates of students of
similar backgrounds who did not
participate in such reforms or
practices.
``(iii) Results.--Not later than 18 months
after the date of the enactment of this
subsection, the Secretary shall submit to the
authorizing committees a final report.
``(H) Grant limit.--An institution with branch
campuses that is an eligible entity may only receive a
grant under this subsection for 1 campus of such
institution at a time.
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection,
$45,000,000, for each of fiscal years 2026 through 2031.''; and
(2) by striking sections 742 through 745.
SEC. 322. REVERSE TRANSFER EFFICIENCY ACT.
Section 444(b)(1) of the General Education Provisions Act (20
U.S.C. 1232g(b)(1)) is amended--
(1) in subparagraph (K)(ii), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (L), by striking the period at the end
and inserting ``; and''; and
(3) by inserting after subparagraph (L) the following:
``(M) an institution of postsecondary education in
which a student was previously enrolled, to which
records of postsecondary coursework and credits are
sent for the purpose of applying such coursework and
credits toward completion of a recognized postsecondary
credential (as that term is defined in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3102)), upon condition that the student provides
written consent prior to receiving such credential.''.
SEC. 323. TRANSPARENT AND FAIR TRANSFER OF CREDIT POLICIES.
Section 485(h) of the Higher Education Act of 1965 (20 U.S.C.
1092(h)) is amended--
(1) in paragraph (1)(A), by inserting ``, including with
respect to the acceptance or denial of such credit'' after
``higher education'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Denial of credit transfer.--An institution may not
establish a transfer of credit policy which denies credit
earned at another institution based solely on the source of
accreditation of such other institution, provided that such
other institution is accredited by an agency or association
that is recognized by the Secretary pursuant to section 496.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 22 - 19.
Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 118-739.
Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 118-739.
Placed on the Union Calendar, Calendar No. 624.
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