No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7880 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 7880
To amend the Higher Education Act of 1965 to require that institutions
of higher education maintain certain adjusted cohort default rates to
participate in programs under title IV of such Act, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 5, 2024
Ms. Porter introduced the following bill; which was referred to the
Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to require that institutions
of higher education maintain certain adjusted cohort default rates to
participate in programs under title IV of such Act, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accountability in Student Loan Data
Act of 2024''.
SEC. 2. PROGRESS PERIOD STATUS.
Section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003) is
amended--
(1) by redesignating paragraphs (14) through (24) as
paragraphs (15) through (25), respectively; and
(2) by inserting after paragraph (13) the following:
``(14) Progress period status.--The term `progress period
status' means the status of an institution of higher education
that is determined by the Secretary to be in danger of failing
to meet title IV eligibility criteria relating to student debt
because the institution has an adjusted cohort default rate of
not less than 10 percent and not more than 15 percent.''.
SEC. 3. CONSUMER INFORMATION.
Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a)
is amended in subsection (i)(1)(T), by striking ``rate,'' and inserting
``rate and adjusted cohort default rate,''.
SEC. 4. FEDERAL PELL GRANTS.
(a) Amendment.--Section 401(j) of the Higher Education Act of 1965
(20 U.S.C. 1070a(j)), as amended by section 703 of the FAFSA
Simplification Act (title VII of division FF of Public Law 116-260), is
amended--
(1) in paragraph (1), by inserting before the period the
following: ``, or if such institution of higher education is
subject to an ineligibility determination under section
435(a)(9)''; and
(2) in paragraph (2), by inserting ``, final adjusted
cohort default rate, or on-time repayment rate,'' before
``determination''.
(b) Effective Date.--The amendment made by paragraph (1) shall take
effect as if included in section 703 of the FAFSA Simplification Act
(title VII of division FF of Public Law 116-260) and subject to the
effective date of section 701(b) of such Act, as amended by section
102(a) of the FAFSA Simplification Act Technical Corrections Act
(division R of Public Law 117-103) (including the authorization
provided under section 102(c)(1)(A) of such Act).
SEC. 5. DISBURSEMENT OF STUDENT LOANS.
Section 428G of the Higher Education Act of 1965 (20 U.S.C. 1078-
7(a)) is amended--
(1) in subsection (a), by adding at the end the following:
``(5) Adjusted cohort default rate.--Beginning on the date
on which the final adjusted cohort default rates are published
by the Secretary for not less than 3 fiscal years under section
435(m), an institution whose adjusted cohort default rate (as
determined under section 435(m)) for each of the 3 most recent
fiscal years for which data are available is less than 5
percent may disburse any loan made, insured, or guaranteed
under this part in a single installment for any period of
enrollment that is not more than 1 semester, 1 trimester, 1
quarter, or 4 months.''; and
(2) in subsection (e), by inserting before the period the
following: ``or, beginning on the date on which the final
adjusted cohort default rates are published by the Secretary
for fiscal year 2023 under section 435(m), an adjusted cohort
default rate (as determined under section 435(m)) of less than
2 percent''.
SEC. 6. COHORT DEFAULT RATES.
(a) Ineligibility Based on High Default Rates.--
(1) In general.--Section 435(a) of the Higher Education Act
of 1965 (20 U.S.C. 1085(a)) is amended--
(A) in paragraph (7)(A), by adding at the end the
following:
``(iii) Default management plan.--The
default management plan required under clause
(i) may not include placing students in
forbearance as a means of reducing the cohort
default rate or the adjusted cohort default
rate of the institution.''; and
(B) by adding at the end the following:
``(9) Ineligibility based on high adjusted cohort default
rates.--
``(A) In general.--Except as provided in
subparagraphs (B) and (D), beginning on the date that
is one year after the date on which the final adjusted
cohort default rates are published by the Secretary for
not less than 3 fiscal years, in a case in which one of
the following determinations is made with respect to an
institution, such institution shall be ineligible to
participate in a program under this title for the
fiscal year for which the determination is made and for
the two succeeding fiscal years:
``(i) The institution's adjusted cohort
default rate is greater than 20 percent for
each of the three most recent fiscal years for
which the final adjusted cohort default rates
are published.
``(ii) With respect to the six most recent
fiscal years for which the final adjusted
cohort default rates are published--
``(I) the institution's adjusted
cohort default rate is greater than 15
percent for each such fiscal year; and
``(II) the Secretary determines
that, during such 6-year period, the
institution has not made adequate
progress in meeting standards for
student achievement established by the
relevant accrediting agency or
association pursuant to section
496(a)(5)(A).
``(iii) With respect to the eight most
recent fiscal years for which the final
adjusted cohort default rates are published--
``(I) the institution's adjusted
cohort default rate is greater than 10
percent for each such fiscal year; and
``(II) the Secretary determines
that, during such 8-year period, the
institution has not made adequate
progress in meeting standards for
student achievement established by the
relevant accrediting agency or
association pursuant to section
496(a)(5)(A).
``(B) Exceptions for certain categories of
educational programs.--With respect to an institution
that loses eligibility to participate in a program
under this title in accordance with subparagraph
(A)(ii), such institution may request and be granted an
exception to such loss of eligibility for a category of
educational programs at such institution by
demonstrating to the Secretary that the adjusted cohort
default rate for the category of educational programs
is 15 percent or less for each fiscal year of the 6-
year period on which such loss of eligibility for the
institution is based.
``(C) Determination of the adjusted cohort rate for
a category of educational programs.--In determining the
adjusted cohort default rate for a category of
educational programs for purposes of this paragraph--
``(i) subsection (m) shall be applied--
``(I) in paragraph (1)--
``(aa) in subparagraph (A),
by substituting `received for
enrollment in the category of
educational programs for which
such rate is being determined'
for `received for attendance at
the institution'; and
``(bb) in subparagraph
(E)(i)(II), by substituting,
`percentage of students
enrolled in the category of
educational programs for which
such rate is being determined'
for `percentage of students
enrolled at the institution';
and
``(II) as if the following were
added at the end of paragraph (2):
```(E) In the case of a student who has received a
loan for enrollment in more than one category of
educational programs, the student (and such student's
subsequent repayment or default) is attributed to the
last category of educational programs in which such
student was enrolled.'.
``(D) Transition exception.--
``(i) In general.--A covered institution
with an adjusted cohort default rate that is
greater than 20 percent for the first fiscal
year for which such rates are published by the
Secretary may request that any determination of
such covered institution's ineligibility under
subparagraph (A) not be based on the adjusted
cohort default rate of such covered institution
for any or all of the first 3 fiscal years for
which such rates are published by the
Secretary.
``(ii) Requirement.--To be granted a
request under clause (i), a covered institution
shall submit to the Secretary a default
management plan as specified in paragraph (7).
``(iii) Definition of covered
institution.--In this subparagraph, the term
`covered institution' means--
``(I) a public institution of
higher education;
``(II) a part B institution (as
defined in section 322); or
``(III) a private, nonprofit
institution of higher education at
which not less than 45 percent of the
total student enrollment consists of
low-income students (as such term is
defined in section 419N(b)(7)).
``(E) Category of educational programs defined.--
The term `category of educational programs', when used
with respect to an institution, means one of the
following:
``(i) The educational programs at the
institution leading to an undergraduate, non-
degree credential.
``(ii) The educational programs at the
institution leading to an associate's degree.
``(iii) The educational programs at the
institution leading to a bachelor's degree.
``(iv) The educational programs at the
institution leading to a graduate, non-degree
credential.
``(v) The educational program at the
institution leading to a graduate degree.
``(10) Application of adjusted cohort default rate.--
Beginning on the date on which the final adjusted cohort
default rates are published by the Secretary for not less than
3 fiscal years--
``(A) paragraph (1) shall be applied by
substituting `paragraph (9)' for `paragraph (2)';
``(B) paragraph (3) shall be applied by
substituting `adjusted cohort default rate, calculated
in accordance with subsection (m)(1)(D), is greater
than 20 percent for any 3 consecutive fiscal years' for
`cohort default rate, calculated in accordance with
subsection (m), is equal to or greater than the
threshold percentage specified in paragraph (2)(B)(iv)
for any two consecutive fiscal years';
``(C) paragraph (4) shall be applied--
``(i) in subparagraph (C), by substituting
`adjusted cohort default rate is greater than
15 percent' for `cohort default rate equals or
exceeds 20 percent'; and
``(ii) in the matter following subparagraph
(C), by substituting `adjusted cohort default
rate to reflect the percentage of defaulted
loans in the representative sample that are
required to be excluded pursuant to subsection
(m)(1)(B)' for `cohort default rate to reflect
the percentage of defaulted loans in the
representative sample that are required to be
excluded pursuant to subsection (m)(1)(B)';
``(D) paragraph (5)(A) shall be applied by
substituting `paragraph (9)' for `paragraph (2)'; and
``(E) paragraph (7) shall be applied--
``(i) in subparagraph (A)(i)--
``(I) in the matter preceding
subclause (I), by substituting
`adjusted cohort default rate is
greater than 20 percent' for `cohort
default rate is equal to or greater
than the threshold percentage specified
in paragraph (2)(B)(iv)'; and
``(II) in subclauses (I) and (II),
by substituting `adjusted cohort
default rate' for `cohort default
rate'; and
``(ii) in subparagraph (B)(i), by
substituting `adjusted cohort default rate is
greater than 20 percent' for `cohort default
rate is equal to or greater than the threshold
percentage specified in paragraph
(2)(B)(iv)'.''.
(2) Conforming amendments.--Section 435(a)(2) of the Higher
Education Act of 1965 (20 U.S.C. 1085(a)) is amended--
(A) in the paragraph heading, by adding at the end
the following: ``before fiscal year 2023''; and
(B) in subparagraph (B)(iv), by striking ``and any
succeeding fiscal year'' and inserting ``through fiscal
year 2022''.
(b) Adjusted Cohort Default Rate Defined.--Section 435(m)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1085(m)(1)) is amended by
adding at the end the following:
``(D)(i) With respect to a cohort default rate calculated
for an institution under this paragraph for fiscal year 2023
and for each succeeding fiscal year, such cohort default rate
shall be adjusted as follows:
``(I) In determining the number of current and
former students at an institution who enter repayment
for such fiscal year--
``(aa) any such student who is in
nonmandatory forbearance for such fiscal year
for a period of greater than 18 months but less
than 36 months shall not be counted as entering
repayment for such fiscal year;
``(bb) such a student shall be counted as
entering repayment for the first fiscal year
for which the student ceases to be in a period
of forbearance and otherwise meets the
requirements for being in repayment; and
``(cc) any such student who is in a period
of forbearance for three or more years shall be
counted as in default and included in the
institution's total number of students in
default.
``(II) Such rate shall be multiplied by the
percentage of students enrolled at the institution for
such fiscal year who are borrowing a loan under part D
of this title.
``(ii) The result obtained under this subparagraph for an
institution shall be referred to in this Act as the `adjusted
cohort default rate'.''.
(c) Publication of Adjusted Cohort Default Rate.--Section 435(m) of
the Higher Education Act of 1965 (20 U.S.C. 1085(m)) is further amended
by adding at the end the following:
``(5) Beginning on the date on which the final adjusted
cohort default rates for fiscal year 2023 are made available
for publication by the Secretary, paragraph (4) shall be
applied by substituting `adjusted cohort default' for `cohort
default' each place it appears.''.
SEC. 7. ADJUSTED COHORT DEFAULT RATE.
Section 487(a)(14) of the Higher Education Act of 1965 is amended
by adding at the end the following:
``(D) Beginning on the date on which the final
adjusted cohort default rates are published by the
Secretary for fiscal year 2023 under section 435(m),
subparagraph (C) shall be applied by substituting
`adjusted cohort default rate in excess of 5 percent'
for `cohort default rate in excess of 10 percent' each
place it appears.''.
SEC. 8. PROGRAM REVIEW AND DATA.
Section 498A of the Higher Education Act of 1965 (20 U.S.C. 1099c-
1) is amended in subsection (a)(2), by striking subparagraph (A) and
inserting the following:
``(A) institutions with an adjusted cohort default
rate for loans under part D of this title in excess of
18 percent or which places such institutions in the
highest 25 percent of such institutions;''.
SEC. 9. ASSISTANCE TO PROGRESS PERIOD INSTITUTIONS.
Part H of title IV of the Higher Education Act of 1965 (20 U.S.C.
1099a et seq.) is amended by adding at the end the following:
``SEC. 498C. ASSISTANCE TO PROGRESS PERIOD INSTITUTIONS.
``(a) In General.--The Secretary shall provide grants and technical
assistance to covered progress period institutions in accordance with
this section.
``(b) Authorized Activities.--Grants and assistance provided under
this section shall be used to improve student achievement (as described
in section 496(a)(5)(A)) at covered progress period institutions.
``(c) Duration.--Grants and assistance may be provided under this
section for a period of not less than one year and not more than three
years.
``(d) Conditions.--
``(1) Benchmarks.--
``(A) In general.--To continue to receive support
under this section after the first year in which such
support is provided, an institution must show progress,
as determined by the Secretary, toward meeting the
standards for student achievement established by the
relevant accrediting agency or association pursuant to
section 496(a)(5)(A).
``(B) Considerations.--In determining the progress
of an institution under subparagraph (A), the Secretary
may take into consideration extenuating circumstances
that may have contributed to the poor performance of
the institution in the first year of the review period.
``(2) Deadline for compliance.--An institution that does
not achieve an adjusted cohort default rate of less than 10
percent after receiving support under this section for three
consecutive years shall be ineligible to receive further
support under this section.
``(3) Prohibition.--An institution shall be ineligible to
receive further support under this section if, while the
institution was receiving such support, the total enrollment of
low-income students (as such term is defined in section
419N(b)(7)) at the institution decreased by 10 percent or more.
``(e) Covered Progress Period Institution.--In this section, the
term `covered progress period institution' means--
``(1) a public institution of higher education that is
determined to be in progress period status;
``(2) a part B institution (as defined in section 322) that
is determined to be in progress period status; or
``(3) a private, nonprofit institution of higher
education--
``(A) that is determined to be in progress period
status; and
``(B) at which not less than 45 percent of the
total student enrollment consists of low-income
students (as such term is defined in section
419N(b)(7)).
``(f) Funding.--
``(1) In general.--There are appropriated such funds as the
Secretary, using the formula described in paragraph (2),
determines necessary to meet the needs of all eligible
institutions under this subsection.
``(2) Formula.--Not later than 1 year after the date of the
enactment of this section, the Secretary shall establish
through negotiated rulemaking a formula to determine the--
``(A) proportional amount of institutional need
under this section; and
``(B) total amount of institutional need under this
section.
``(3) Special rule.--Such formula must at minimum take into
consideration the severity of the problem, size of the
institution, institutional resources, historical underfunding,
and the number of low-income students (as such term is defined
in section 419N(b)(7)) being served.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
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