G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML ..................................................................... (Original Signature of Member) H. R. ll 115TH CONGRESS 1ST SESSION To support students in completing an affordable postsecondary education that will prepare them to enter the workforce with the skills they need for lifelong success. IN THE HOUSE OF REPRESENTATIVES Ms. FOXX (for herself and Mr. GUTHRIE) introduced the following bill; which was referred to the Committee on lllllllllllllll A BILL To support students in completing an affordable postsecondary education that will prepare them to enter the workforce with the skills they need for lifelong success. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 4 (a) SHORT TITLE.—This Act may be cited as the 5 ‘‘Promoting Real Opportunity, Success, and Prosperity 6 through Education Reform Act’’ or the ‘‘PROSPER Act’’. 7 (b) TABLE OF CONTENTS.—The table of contents for 8 this Act is as follows: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 2 Sec. 1. Short title; table of contents. Sec. 2. References. Sec. 3. General effective date. TITLE I—GENERAL PROVISIONS PART A—DEFINITIONS Sec. Sec. Sec. Sec. 101. 102. 103. 104. Definition of institution of higher education. Institutions outside the United States. Additional definitions. Regulatory relief. PART B—ADDITIONAL GENERAL PROVISIONS Sec. Sec. Sec. Sec. Sec. Sec. Sec. 111. 112. 113. 114. 115. 116. 117. Free speech protections. National Advisory Committee on Institutional Quality and Integrity. Repeal of certain reporting requirements. Programs on drug and alcohol abuse prevention. Campus access for religious groups. Secretarial prohibitions. Ensuring equal treatment by governmental entities. PART C—COST OF HIGHER EDUCATION Sec. 121. College Dashboard website. Sec. 122. Net price calculators. Sec. 123. Text book information. PART D—ADMINISTRATIVE PROVISIONS FOR DELIVERY FINANCIAL ASSISTANCE OF STUDENT Sec. 131. Performance-based organization for the delivery of Federal student financial assistance. Sec. 132. Administrative data transparency. PART E—LENDER AND INSTITUTION REQUIREMENTS RELATING EDUCATION LOANS TO Sec. 141. Modification of preferred lender arrangements. PART F—ADDRESSING SEXUAL ASSAULT Sec. 151. Addressing sexual assault. TITLE II—EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS Sec. 201. Repeal. Sec. 202. Grants for access to high-demand careers. TITLE III—INSTITUTIONAL AID Sec. Sec. Sec. Sec. Sec. 301. 302. 303. 304. 305. Strengthening institutions. Strengthening historically Black colleges and universities. Historically Black college and university capital financing. Minority Science and Engineering Improvement Program. Strengthening historically Black colleges and universities and other minority-serving institutions. Sec. 306. General provisions. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 3 TITLE IV—STUDENT ASSISTANCE PART A—GRANTS Sec. Sec. Sec. Sec. TO STUDENTS IN ATTENDANCE HIGHER EDUCATION AT INSTITUTIONS OF 401. 402. 403. 404. Federal Pell Grants. Federal TRIO programs. Gaining early awareness and readiness for undergraduate programs. Special programs for students whose families are engaged in migrant and seasonal farmwork. Sec. 405. Child care access means parents in school. Sec. 406. Repeals. Sec. 407. Sunset of TEACH grants. PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM Sec. Sec. Sec. Sec. Sec. Sec. Sec. 421. 422. 423. 424. 425. 426. 427. Federal Direct Consolidation Loans. Loan rehabilitation. Loan forgiveness for teachers. Loan forgiveness for service in areas of national need. Loan repayment for civil legal assistance attorneys. Sunset of cohort default rate and other conforming changes. Closed school and other discharges. PART C—FEDERAL WORK-STUDY PROGRAMS Sec. Sec. Sec. Sec. Sec. Sec. Sec. 441. 442. 443. 444. 445. 446. 447. Purpose; authorization of appropriations. Allocation formula. Grants for Federal work-study programs. Flexible use of funds. Job location and development programs. Community service. Work colleges. PART D—FEDERAL DIRECT STUDENT LOAN PROGRAM Sec. 451. Termination of Federal Direct Loan Program under part D and other conforming amendments. Sec. 452. Borrower defenses. Sec. 453. Administrative expenses. Sec. 454. Loan cancellation for teachers. PART E—FEDERAL ONE LOANS Sec. 461. Wind-down of Federal Perkins Loan Program. Sec. 462. Federal ONE Loan program. PART F—NEED ANALYSIS Sec. Sec. Sec. Sec. 471. 472. 473. 474. Cost of attendance. Simplified needs test. Discretion of student financial aid administrators. Definitions of total income and assets. PART G—GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE Sec. 481. Definitions of academic year and eligible program. Sec. 482. Programmatic loan repayment rates. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 4 Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 483. Master calendar. 484. FAFSA Simplification. 485. Student eligibility. 486. Statute of limitations. 487. Institutional refunds. 488. Information disseminated to prospective and enrolled students. 489. Early awareness of financial aid eligibility. 490. Distance education demonstration programs. 491. Contents of program participation agreements. 492. Regulatory relief and improvement. 493. Transfer of allotments. 494. Administrative expenses. 494A. Repeal of advisory committee. 494B. Regional meetings and negotiated rulemaking. 494C. Deferral of loan repayment following active duty. 494D. Contracts; matching program. PART H—PROGRAM INTEGRITY Sec. 495. Repeal of and prohibition on State authorization regulations. Sec. 496. Recognition of accrediting agency or association. Sec. 497. Eligibility and certification procedures. TITLE V—DEVELOPING INSTITUTIONS Sec. 501. Hispanic-serving institutions. Sec. 502. Promoting postbaccalaureate opportunities for Hispanic Americans. Sec. 503. General provisions. TITLE VI—INTERNATIONAL EDUCATION PROGRAMS Sec. 601. International and foreign language studies. Sec. 602. Business and international education programs. Sec. 603. Repeal of assistance program for Institute for International Public Policy. Sec. 604. General provisions. TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS Sec. Sec. Sec. Sec. 701. 702. 703. 704. Graduate education programs. Repeal of Fund for the Improvement of Postsecondary Education. Programs for students with disabilities. Repeal of college access challenge grant program. TITLE VIII—OTHER REPEALS Sec. 801. Repeal of additional programs. TITLE IX—AMENDMENTS TO OTHER LAWS PART A—EDUCATION OF THE DEAF ACT OF 1986 Sec. 901. Education of the Deaf Act of 1986. PART B—TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF 1978; DINE′ COLLEGE ACT g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 5 Sec. 911. Tribally Controlled Colleges and Universities Assistance Act of 1978. Sec. 912. Dine′ College Act. 1 SEC. 2. REFERENCES. 2 Except as otherwise expressly provided, whenever in 3 this Act an amendment or repeal is expressed in terms 4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 6 section or other provision of the Higher Education Act of 7 1965 (20 U.S.C. 1001 et seq.). 8 SEC. 3. GENERAL EFFECTIVE DATE. 9 Except as otherwise provided in this Act or the 10 amendments made by this Act, this Act and the amend11 ments made by this Act shall take effect on the date of 12 enactment of this Act. 13 TITLE I—GENERAL PROVISIONS 14 PART A—DEFINITIONS 15 SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU- 16 CATION. 17 Part A of title I (20 U.S.C. 1001 et seq.) is amended 18 by striking section 101 (20 U.S.C. 1001) and inserting 19 the following: 20 ‘‘SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU- 21 22 CATION. ‘‘(a) INSTITUTION OF HIGHER EDUCATION.—For 23 purposes of this Act, the term ‘institution of higher edu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 6 1 cation’ means an educational institution in any State 2 that— 3 4 ‘‘(1) admits as regular students only persons who— 5 ‘‘(A) have a certificate of graduation from 6 a school providing secondary education, or the 7 recognized equivalent of such a certificate, or 8 who meet the requirements of section 484(d); 9 ‘‘(B) are beyond the age of compulsory 10 school attendance in the State in which the in- 11 stitution is located; or 12 ‘‘(C) will be dually or concurrently enrolled 13 in the institution and a secondary school; 14 ‘‘(2) is legally authorized by the State in which 15 it maintains a physical location to provide a program 16 of education beyond secondary education; 17 18 ‘‘(3)(A) is accredited by a nationally recognized accrediting agency or association; or 19 ‘‘(B) if not so accredited, is an institution that 20 has been granted preaccreditation status by such an 21 agency or association that has been recognized by 22 the Secretary for the granting of preaccreditation 23 status, and the Secretary has determined that there 24 is satisfactory assurance that the institution will g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 7 1 meet the accreditation standards of such an agency 2 or association within a reasonable time; and 3 ‘‘(4) provides— 4 ‘‘(A) an educational program for which the 5 institution awards a bachelor’s degree, graduate 6 degree, or professional degree; 7 ‘‘(B) not less than a 2-year educational 8 program which is acceptable for full credit to- 9 wards a bachelor’s degree; or 10 ‘‘(C) a non-degree program leading to a 11 recognized educational credential that meets the 12 definition of an eligible program under section 13 481(b). 14 ‘‘(b) ADDITIONAL LIMITATIONS.— 15 16 ‘‘(1) PROPRIETARY EDUCATION.— 17 ‘‘(A) LENGTH OF EXISTENCE.—A propri- 18 etary institution shall not be considered an in- 19 stitution of higher education unless such insti- 20 tution has been in existence for at least 2 years. 21 ‘‘(B) INSTITUTIONAL INELIGIBILITY FOR 22 MINORITY SERVING INSTITUTION PROGRAMS.— 23 A proprietary institution shall not be considered 24 an institution of higher education for the pur- 25 poses of any program under title III or V. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 INSTITUTIONS OF HIGHER 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 8 1 ‘‘(2) POSTSECONDARY INSTITU- 2 TIONS.—A 3 only non-degree programs described in subsection 4 (a)(4)(C) shall not be considered an institution of 5 higher education unless such institution has been in 6 existence for at least 2 years. 7 ‘‘(3) LIMITATIONS nonprofit or public institution that offers BASED ON MANAGEMENT.— 8 An institution shall not be considered an institution 9 of higher education if— 10 ‘‘(A) the institution, or an affiliate of the 11 institution that has the power, by contract or 12 ownership interest, to direct or cause the direc- 13 tion of the management or policies of the insti- 14 tution, has filed for bankruptcy; or 15 ‘‘(B) the institution, the institution’s 16 owner, or the institution’s chief executive officer 17 has been convicted of, or has pled nolo 18 contendere or guilty to, a crime involving the 19 acquisition, use, or expenditure of Federal 20 funds, or has been judicially determined to have 21 committed a crime involving the acquisition, 22 use, or expenditure involving Federal funds. 23 ‘‘(4) LIMITATION 24 ROLLMENT.—An g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 VOCATIONAL 08:59 Dec 01, 2017 Jkt 000000 ON COURSE OF STUDY OR EN- institution shall not be considered (680541 26) PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 9 1 an institution of higher education if such institu- 2 tion— 3 ‘‘(A) offers more than 50 percent of such 4 institution’s courses by correspondence edu- 5 cation, unless the institution is an institution 6 that meets the definition in section 3(3)(C) of 7 the Carl D. Perkins Career and Technical Edu- 8 cation Act of 2006; 9 ‘‘(B) enrolls 50 percent or more of the in- 10 stitution’s students in correspondence education 11 courses, unless the institution is an institution 12 that meets the definition in section 3(3)(C) of 13 such Act, except that the Secretary, at the re- 14 quest of the institution, may waive the applica- 15 bility of this subparagraph to the institution for 16 good cause, as determined by the Secretary in 17 the case of an institution of higher education 18 that provides a 2- or 4-year program of instruc- 19 tion (or both) for which the institution awards 20 an associate or baccalaureate degree, respec- 21 tively; 22 ‘‘(C) has a student enrollment in which 23 more than 25 percent of the students are incar- 24 cerated, except that the Secretary may waive 25 the limitation contained in this subparagraph g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 10 1 for an institution that provides a 2- or 4-year 2 program of instruction (or both) for which the 3 institution awards an associate’s degree or a 4 postsecondary certificate, or a bachelor’s de- 5 gree, respectively; or 6 ‘‘(D) has a student enrollment in which 7 more than 50 percent of the students either do 8 not have a secondary school diploma or its rec- 9 ognized equivalent, or do not meet the require- 10 ments of section 484(d), and does not provide 11 a 2- or 4-year program of instruction (or both) 12 for which the institution awards an associate’s 13 degree or a bachelor’s degree, respectively, ex- 14 cept that the Secretary may waive the limita- 15 tion contained in this subparagraph if an insti- 16 tution demonstrates to the satisfaction of the 17 Secretary that the institution exceeds such limi- 18 tation because the institution serves, through 19 contracts with Federal, State, or local govern- 20 ment agencies, significant numbers of students 21 who do not have a secondary school diploma or 22 its recognized equivalent or do not meet the re- 23 quirements of section 484(d). 24 ‘‘(c) LIST OF ACCREDITING AGENCIES.—For pur- 25 poses of this section, the Secretary shall publish a list of g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 11 1 nationally recognized accrediting agencies or associations 2 that the Secretary determines, pursuant to subpart 2 of 3 part H of title IV, to be reliable authority as to the quality 4 of the education offered. 5 ‘‘(d) CERTIFICATION.—The Secretary shall certify, 6 for the purposes of participation in title IV, an institu7 tion’s qualification as an institution of higher education 8 in accordance with the requirements of subpart 3 of part 9 H of title IV. 10 ‘‘(e) LOSS OF ELIGIBILITY.—An institution of higher 11 education shall not be considered to meet the definition 12 of an institution of higher education for the purposes of 13 participation in title IV if such institution is removed from 14 eligibility for funds under title IV as a result of an action 15 pursuant to part H of title IV. 16 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in sub- 17 section (a)(2) relating to State authorization shall be con18 strued to— 19 ‘‘(1) impede or preempt State laws, regulations, 20 or requirements on how States authorize out-of-state 21 institutions of higher education; or 22 ‘‘(2) limit, impede, or preclude a State’s ability 23 to collaborate or participate in a reciprocity agree- 24 ment to permit an institution within such State to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 12 1 meet any other State’s authorization requirements 2 for out-of-state institutions.’’. 3 SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 4 Part A of title I (20 U.S.C. 1001 et seq.) is further 5 amended by striking section 102 (20 U.S.C. 1002) and 6 inserting the following: 7 ‘‘SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 8 ‘‘(a) INSTITUTIONS OUTSIDE THE UNITED 9 STATES.— 10 ‘‘(1) IN for purposes of part 11 D or E of title IV, the term ‘institution of higher 12 education’ includes an institution outside the United 13 States (referred to in this part as a ‘foreign institu- 14 tion’) that is comparable to an institution of higher 15 education as defined in section 101 and has been ap- 16 proved by the Secretary for purposes of part D or 17 E of title IV, consistent with the requirements of 18 section 452(d). 19 ‘‘(2) QUALIFICATIONS.—Only for the purposes 20 of students receiving aid under title IV, an institu- 21 tion of higher education may not qualify as a foreign 22 institution under paragraph (1), unless such institu- 23 tion— 24 ‘‘(A) is legally authorized to provide an 25 educational program beyond secondary edu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Only 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 13 1 cation by the education ministry (or comparable 2 agency) of the country in which the institution 3 is located; 4 ‘‘(B) is not located in a State; 5 ‘‘(C) except as provided with respect to 6 clinical training offered by the institution under 7 600.55(h)(1), section 600.56(b), or section 8 600.57(a)(2) of title 34, Code of Federal Regu- 9 lations (as in effect pursuant to subsection 10 (b))— 11 ‘‘(i) does not offer any portion of an 12 educational program in the United States 13 to students who are citizens of the United 14 States; 15 ‘‘(ii) has no written arrangements 16 with an institution or organization located 17 in the United States under which students 18 enrolling at the foreign institution would 19 take courses from an institution located in 20 the United States; and 21 ‘‘(iii) does not allow students to enroll 22 in any course offered by the foreign insti- 23 tution in the United States, including re- 24 search, work, internship, externship, or 25 special studies within the United States, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 14 1 except that independent research done by 2 an individual student in the United States 3 for not more than one academic year is 4 permitted, if the research is conducted dur- 5 ing the dissertation phase of a doctoral 6 program under the guidance of faculty and 7 the research is performed at a facility in 8 the United States; 9 ‘‘(D) awards degrees, certificates, or other 10 recognized educational credentials in accordance 11 with section 600.54(e) of title 34, Code of Fed- 12 eral Regulations (as in effect pursuant to sub- 13 section (b)) that are officially recognized by the 14 country in which the institution is located; and 15 ‘‘(E) meets the applicable requirements of 16 subsection (b). 17 ‘‘(3) INSTITUTIONS 18 WITH LOCATIONS IN AND OUT- SIDE THE UNITED STATES.—In a case of an institution 19 of higher education consisting of two or more locations 20 offering all or part of an educational program that are 21 directly or indirectly under common ownership and that 22 enrolls students both within a State and outside the 23 United States, and the number of students who would be 24 eligible to receive funds under title IV attending locations g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 15 1 of such institution outside the United States, is at least 2 twice the number of students enrolled within a State— 3 ‘‘(A) the locations outside the United States shall 4 apply to participate as one or more foreign institutions 5 and shall meet the requirements of paragraph (1) of this 6 definition, and the other requirements of this part; and 7 ‘‘(B) the locations within a State shall be treated as 8 an institution of higher education under section 101. 9 ‘‘(b) TREATMENT OF CERTAIN REGULATIONS.— 10 ‘‘(1) FORCE 11 ‘‘(A) IN GENERAL.—The provisions of title 12 34, Code of Federal Regulations, referred to in 13 subparagraph (B), as such provisions were in 14 effect on the day before the date of the enact- 15 ment of the PROSPER Act, shall have the 16 force and effect of enacted law until changed by 17 such law and are deemed to be incorporated in 18 this subsection as though set forth fully in this 19 subsection. 20 ‘‘(B) APPLICABLE PROVISIONS.—The pro- 21 visions of title 34, Code of Federal Regulations, 22 referred to in this subparagraph are the fol- 23 lowing: 24 ‘‘(i) Subject to paragraph (2)(A), sec- 25 tion 600.41(e)(3). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND EFFECT.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 16 1 ‘‘(ii) Subject to paragraph (2)(B), sec- 2 tion 600.52. 3 ‘‘(iii) Subject to paragraph (2)(C), 4 section 600.54, except that paragraph (1) 5 of subsection (a) of such section shall have 6 no force or effect. 7 ‘‘(iv) Subject to subparagraphs (D) 8 and (E) of paragraph (2), section 600.55, 9 except that paragraph (4) of subsection (f) 10 of such section shall have no force or ef- 11 fect. 12 ‘‘(v) Section 600.56. 13 ‘‘(vi) Subject to paragraph (2)(F), 14 section 600.57. 15 ‘‘(vii) Subject to subparagraphs (G) 16 and 17 668.23(h), except that clause (iii) of para- 18 graph (1) of such section shall have no 19 force or effect. 20 of paragraph (2), section ‘‘(viii) Section 668.5. 21 ‘‘(C) APPLICATION TO FEDERAL ONE 22 LOANS.—With 23 34, Code of Federal Regulations, referred to 24 subparagraph (B), as modified by paragraph 25 (2) any reference to a loan made under part D g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 (H) 08:59 Dec 01, 2017 Jkt 000000 respect to the provisions of title (680541 26) PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 17 1 of title IV shall also be treated as a reference 2 to a loan made under part E of title IV. 3 ‘‘(2) following shall 4 apply to the provisions of title 34, Code of Federal 5 Regulations, referred to in paragraph (1)(B): 6 ‘‘(A) Notwithstanding section 600.41(e)(3) 7 of title 34, Code of Federal Regulations (as in 8 effect pursuant to paragraph (1)), if the basis 9 for the loss of eligibility of a foreign graduate 10 medical school to participate in programs under 11 title IV is one or more annual pass rates on the 12 United States Medical Licensing Examination 13 below the threshold required in subparagraph 14 (D) the sole issue is whether the aggregate pass 15 rate for the preceding calendar year fell below 16 that threshold. For purposes of the preceding 17 sentence, in the case of a foreign graduate med- 18 ical school that opted to have the Educational 19 Commission for Foreign Medical Graduates cal- 20 culate and provide the pass rates directly to the 21 Secretary for the preceding calendar year as 22 permitted under section 600.55(d)(2) of title 23 34, Code of Federal Regulations (as in effect 24 pursuant to paragraph (1)), in lieu of the for- 25 eign graduate medical school providing pass g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 MODIFICATIONS.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 18 1 rate data to the Secretary under section 2 600.55(d)(1)(iii) of title 34, Code of Federal 3 Regulations (as in effect pursuant to paragraph 4 (1)), the Educational Commission for Foreign 5 Medical Graduates’ calculations of the school’s 6 rates are conclusive; and the presiding official 7 has no authority to consider challenges to the 8 computation of the rate or rates by the Edu- 9 cational Commission for Foreign Medical Grad- 10 uates. 11 ‘‘(B) Notwithstanding section 600.52 of 12 title 34, Code of Federal Regulations (as in ef- 13 fect pursuant to paragraph (1)), in this Act, the 14 term ‘foreign institution’ means an institution 15 described in subsection (a). 16 ‘‘(C) Notwithstanding section 600.54(c) of 17 title 34, Code of Federal Regulations (as in ef- 18 fect pursuant to paragraph (1)), to be eligible 19 to participate in programs under title IV, for- 20 eign institution may not enter into a written ar- 21 rangement under which an institution or orga- 22 nizations that is not eligible to participate in 23 programs under title IV provides more than 25 24 percent of the program of study for one or more 25 of the eligible foreign institution’s programs. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 19 1 ‘‘(D) section 2 600.55(f)(1)(ii) of title 34, Code of Federal 3 Regulations (as in effect pursuant to paragraph 4 (1)), for a foreign graduate medical school out- 5 side of Canada, for Step 1, Step 2–CS, and 6 Step 2–CK, or the successor examinations, of 7 the United States Medical Licensing Examina- 8 tion administered by the Educational Commis- 9 sion for Foreign Medical Graduate, at least 75 10 percent of the school’s students and graduates 11 who receive or have received title IV funds in 12 order to attend that school, and who completed 13 the final of these three steps of the examination 14 in the year preceding the year for which any of 15 the school’s students seeks a loan under title IV 16 shall have received an aggregate passing score 17 on the exam as a whole; or except as provided 18 in section 600.55(f)(2) of title 34, Code of Fed- 19 eral Regulations (as in effect pursuant to para- 20 graph (1)), for no more than two consecutive 21 years, at least 70 percent of the individuals who 22 were students or graduates of the graduate 23 medical school outside the United States or 24 Canada (who receive or have received title IV 25 funds in order to attend that school) taking the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 20 1 United States Medical Licensing Examination 2 exams in the year preceding the year for which 3 any of the school’s students seeks a loan under 4 title IV shall have received an aggregate pass- 5 ing score on the exam as a whole. 6 ‘‘(E) Notwithstanding 600.55(h)(2) of title 7 34, Code of Federal Regulations (as in effect 8 pursuant to paragraph (1)), not more than 25 9 percent of the graduate medical educational 10 program offered to United States students, 11 other than the clinical training portion of the 12 program, may be located outside of the country 13 in which the main campus of the foreign grad- 14 uate medical school is located. 15 ‘‘(F) Notwithstanding section 600.57(a)(5) 16 of title 34, Code of Federal Regulations (as in 17 effect pursuant to paragraph (1)), a nursing 18 school shall reimburse the Secretary for the 19 cost of any loan defaults for current and former 20 students during the previous fiscal year. 21 ‘‘(G) section 22 668.23(h)(1)(ii), of title 34, Code of Federal 23 Regulations (as in effect pursuant to paragraph 24 (1)), 25 $500,000 or more in funds under title IV dur- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 a foreign institution that received (680541 26) PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 21 1 ing its most recently completed fiscal year shall 2 submit, in English, for each most recently com- 3 pleted fiscal year in which it received such 4 funds, audited financial statements prepared in 5 accordance with generally accepted accounting 6 principles of the institution’s home country pro- 7 vided that such accounting principles are com- 8 parable to the International Financial Report- 9 ing Standards. 10 ‘‘(H) section 11 668.23(h)(1)(ii), of title 34, Code of Federal 12 Regulations (as in effect pursuant to paragraph 13 (1)), only in a case in which the accounting 14 principles of an institution’s home country are 15 not comparable to International Financial Re- 16 porting Standards shall the institution be re- 17 quired to submit corresponding audited finan- 18 cial statements that meet the requirements of 19 section 668.23(d) of title 34, Code of Federal 20 Regulations (as in effect pursuant to paragraph 21 (1)). 22 ‘‘(c) SPECIAL RULES.— 23 ‘‘(1) IN GENERAL.—A foreign graduate medical 24 school at which student test passage rates are below 25 the minimum requirements set forth in subsection g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 22 1 (b)(2)(D) for each of the two most recent calendar 2 years for which data are available shall not be eligi- 3 ble to participate in programs under part D or E of 4 title IV in the fiscal year subsequent to that con- 5 secutive two year period and such institution shall 6 regain eligibility to participate in programs under 7 such part only after demonstrating compliance with 8 requirements under section 600.55 of title 34, Code 9 of Federal Regulations (as in effect pursuant to sub- 10 section (b)) for one full calendar year subsequent to 11 the fiscal year the institution became ineligible un- 12 less, within 30 days of receiving notification from 13 the Secretary of the loss of eligibility under this 14 paragraph, the institution appeals the loss of its eli- 15 gibility to the Secretary. The Secretary shall issue a 16 decision on any such appeal within 45 days after its 17 submission. Such decision may permit the institution 18 to continue to participate in programs under part D 19 or E of title IV, if— 20 ‘‘(A) the institution demonstrates to the 21 satisfaction of the Secretary that the test pas- 22 sage rates on which the Secretary has relied are 23 not accurate, and that the recalculation of such 24 rates would result in rates that exceed the re- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 23 1 quired minimum for any of these two calendar 2 years; or 3 ‘‘(B) there are, in the judgement of the 4 Secretary, mitigating circumstances that would 5 make the application of this paragraph inequi- 6 table. 7 ‘‘(2) STUDENT pursuant to 8 this subsection, a foreign graduate medical school 9 loses eligibility to participate in the programs under 10 part D or E of title IV, then a student at such insti- 11 tution may, notwithstanding such loss of eligibility, 12 continue to be eligible to receive a loan under such 13 part while attending such institution for the aca- 14 demic year succeeding the academic year in which 15 such loss of eligibility occurred. 16 17 ‘‘(3) TREATMENT OF CLINICAL TRAINING PRO- GRAMS.— 18 ‘‘(A) IN GENERAL.—Clinical training pro- 19 grams operated by a foreign graduate medical 20 school with an accredited hospital or clinic in 21 the United States or at an institution in Can- 22 ada accredited by the Liaison Committee on 23 Medical Education shall be deemed to be ap- 24 proved and shall not require the prior approval 25 of the Secretary. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ELIGIBILITY.—If, 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 24 1 ‘‘(B) ON-SITE EVALUATIONS.—Any part of 2 a clinical training program operated by a for- 3 eign graduate medical school located in a for- 4 eign country other than the country in which 5 the main campus is located, in the United 6 States, or at an institution in Canada accred- 7 ited by the Liaison Committee on Medical Edu- 8 cation, shall not require an on-site evaluation or 9 specific approval by the institution’s medical ac- 10 crediting agency if the location is a teaching 11 hospital accredited by and located within a for- 12 eign country approved by the National Com- 13 mittee on Foreign Medical Education and Ac- 14 creditation. 15 ‘‘(d) FAILURE TO RELEASE INFORMATION.—An in- 16 stitution outside the United States that does not provide 17 to the Secretary such information as may be required by 18 this section shall be ineligible to participate in the loan 19 program under part D or E of title IV. 20 ‘‘(e) ONLINE EDUCATION.—Notwithstanding section 21 481(b)(2), an eligible program described in section 600.54 22 of title 34, Code of Federal Regulations (as in effect pur23 suant to subsection (b)) may not offer more than 50 per24 cent of courses through telecommunications.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 25 1 SEC. 103. ADDITIONAL DEFINITIONS. 2 (a) DIPLOMA MILL.—Section 103(5)(B) (20 U.S.C. 3 1003(5)(B)) is amended by striking ‘‘section 102’’ and in4 serting ‘‘section 101 or 102’’. 5 (b) CORRESPONDENCE EDUCATION.—Section 103(7) 6 (20 U.S.C. 1003(7)) is amended to read as follows: 7 ‘‘(7) CORRESPONDENCE EDUCATION.—The 8 term ‘correspondence education’ means education 9 that is provided by an institution of higher education 10 under which— 11 ‘‘(A) the institution provides instructional 12 materials (including examinations on the mate- 13 rials) by mail or electronic transmission to stu- 14 dents who are separated from the instructor; 15 and 16 ‘‘(B) interaction between the institution 17 and the student is limited and the academic in- 18 struction by faculty is not regular and sub- 19 stantive, as assessed by the institution’s accred- 20 iting agency or association under section 496.’’. 21 (c) EARLY CHILDHOOD EDUCATION PROGRAM.— 22 Section 103(8) (20 U.S.C. 1003(8)) is amended to read 23 as follows: 24 ‘‘(8) EARLY 25 GRAM.—The 26 gram’ means a program— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CHILDHOOD 08:59 Dec 01, 2017 Jkt 000000 EDUCATION PRO- term ‘early childhood education pro- (680541 26) PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 26 1 ‘‘(A) that serves children of a range of 2 ages from birth through age five that addresses 3 the children’s cognitive (including language, 4 early literacy, and early mathematics), social, 5 emotional, and physical development; and 6 ‘‘(B) that is— 7 ‘‘(i) a Head Start program or an 8 Early Head Start program carried out 9 under the Head Start Act (42 U.S.C. 9831 10 et seq.), including a migrant or seasonal 11 Head Start program, an Indian Head 12 Start program, or a Head Start program 13 or an Early Head Start program that also 14 receives State funding; 15 ‘‘(ii) a State licensed or regulated 16 child care program; 17 ‘‘(iii) a State-funded prekindergarten 18 or child care program; 19 ‘‘(iv) a program authorized under sec- 20 tion 619 of the Individuals with Disabil- 21 ities Education Act or part C of such Act; 22 or 23 ‘‘(v) a program operated by a local 24 educational agency.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 27 1 (d) NONPROFIT.—Section 103(13) (20 U.S.C. 2 1003(13)) is amended to read as follows: 3 ‘‘(13) NONPROFIT.— 4 ‘‘(A) The term ‘nonprofit’, when used with 5 respect to a school, agency, organization, or in- 6 stitution means a school, agency, organization, 7 or institution owned and operated by one or 8 more nonprofit corporations or associations, no 9 part of the net earnings of which inures, or may 10 lawfully inure, to the benefit of any private 11 shareholder or individual. 12 ‘‘(B) The term ‘nonprofit’, when used with 13 respect to foreign institution means— 14 ‘‘(i) an institution that is owned and 15 operated only by one or more nonprofit 16 corporations or associations; and 17 ‘‘(ii)(I) if a recognized tax authority 18 of the institution’s home country is recog- 19 nized by the Secretary for purposes of 20 making determinations of an institution’s 21 nonprofit status for purposes of title IV, 22 the institution is determined by that tax 23 authority to be a nonprofit educational in- 24 stitution; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 28 1 ‘‘(II) if no recognized tax authority of 2 the institution’s home country is recog- 3 nized by the Secretary for purposes of 4 making determinations of an institution’s 5 nonprofit status for purposes of title IV, 6 the foreign institution demonstrates to the 7 satisfaction of the Secretary that it is a 8 nonprofit educational institution.’’. 9 (e) COMPETENCY-BASED EDUCATION; COMPETENCY- 10 BASED EDUCATION PROGRAM.—Section 103 (20 U.S.C. 11 1003) is amended by adding at the end the following: 12 13 ‘‘(25) COMPETENCY-BASED PETENCY-BASED EDUCATION PROGRAM.— 14 ‘‘(A) COMPETENCY-BASED EDUCATION.— 15 Except as otherwise provided, the term ‘com- 16 petency-based 17 that— 18 education’ means education ‘‘(i) measures academic progress and 19 attainment— 20 ‘‘(I) by direct assessment of a 21 student’s level of mastery of com- 22 petencies; 23 ‘‘(II) by expressing a student’s 24 level of mastery of competencies in g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EDUCATION; COM- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 29 1 terms of equivalent credit or clock 2 hours; or 3 ‘‘(III) by a combination of the 4 methods described in subclauses (I) or 5 (II) and credit or clock hours; and 6 ‘‘(ii) provides the educational content, 7 activities, and resources, including sub- 8 stantive instructional interaction, including 9 by faculty, and regular support by the in- 10 stitution, necessary to enable students to 11 learn or develop what is required to dem- 12 onstrate and attain mastery of such com- 13 petencies, as assessed by the accrediting 14 agency or association of the institution of 15 higher education. 16 ‘‘(B) EDUCATION 17 PROGRAM.—Except 18 term ‘competency-based education program’ 19 means a postsecondary program offered by an 20 institution of higher education that— as otherwise provided, the 21 ‘‘(i) provides competency-based edu- 22 cation, which upon a student’s demonstra- 23 tion or mastery of a set of competencies 24 identified and required by the institution, 25 leads to or results in the award of a certifi- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 COMPETENCY-BASED 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 30 1 cate, degree, or other recognized edu- 2 cational credential; 3 ‘‘(ii) has a method to differentiate be- 4 tween knowledge that a student acquired 5 prior to enrollment in the competency- 6 based education program and knowledge 7 that the student acquired as a result of en- 8 rollment in such program; and 9 ‘‘(iii) is organized in such a manner 10 that an institution can determine, based on 11 the method of measurement selected by the 12 institution 13 what constitutes a full-time, three-quarter 14 time, half-time, and less than half-time 15 workload for the purposes of awarding and 16 administering assistance under title IV of 17 this Act, or assistance provided under an- 18 other provision of Federal law to attend an 19 institution of higher education. 20 ‘‘(C) subparagraph COMPETENCY (A)(i), DEFINED.—In this 21 paragraph, the term ‘competency’ means the 22 knowledge, skill, or characteristic demonstrated 23 by a student in a subject area.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 under 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 31 1 (f) PAY FOR SUCCESS INITIATIVE.—Section 103 (20 2 U.S.C. 1003) is amended by adding at the end the fol3 lowing: 4 ‘‘(26) PAY FOR SUCCESS INITIATIVE.—The 5 term ‘pay for success initiative’ has the meaning 6 given the term in section 8101 of the Elementary 7 and Secondary Education Act of 1965 (20 U.S.C. 8 7801).’’. 9 (g) EVIDENCE-BASED.—Section 103 (20 U.S.C. 10 1003) is amended by adding at the end the following: 11 ‘‘(27) EVIDENCE-BASED.—The term ‘evidence- 12 based’ has the meaning given the term in section 13 8101(21)(A) of the Elementary and Secondary Edu- 14 cation Act of 1965 (20 U.S.C. 7801(21)(A)), except 15 that such term shall also apply to institutions of 16 higher education.’’. 17 SEC. 104. REGULATORY RELIEF. 18 (a) REGULATIONS REPEALED.— 19 (1) REPEAL.—The following regulations (in- 20 cluding any supplement or revision to such regula- 21 tions) are repealed and shall have no legal effect: 22 (A) DEFINITION 23 definition of the term ‘‘credit hour’’ in section 24 600.2 of title 34, Code of Federal Regulations, 25 as added by the final regulations published by g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF CREDIT HOUR.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 32 1 the Department of Education in the Federal 2 Register on October 29, 2010 (75 Fed. Reg. 3 66946). 4 (B) EMPLOYMENT.—Sections 5 600.10(c), 6 668.415, 668.6, and 668.7, of title 34, Code of 7 Federal Regulations, as added or amended by 8 the final regulations published by the Depart- 9 ment of Education in the Federal Register on 10 October 31, 2014 (79 Fed. Reg. 64889 et seq.). 11 (C) 600.20(d), BORROWER 668.401 through DEFENSE.—Sections 12 668.41, 668.90, 668.93, 668.171, 668.175, 13 674.33, 14 682.410, 15 685.212(k), 685.214, 685.215, 685.222, appen- 16 dix A to subpart B of part 685, 685.300, 17 685.308, of title 34, Code of Federal Regula- 18 tions, as added or amended by the final regula- 19 tions published by the Department of Edu- 20 cation in the Federal Register on November 1, 21 2016 (81 Fed. Reg. 75926 et seq.). 22 (2) EFFECT 23 regulations repealed— 682.211, 685.200, 682.402(d), 682.405, 685.205, 685.206, OF REPEAL.—To the extent that 24 (A) by subparagraph (A) or subparagraph 25 (B) of paragraph (1) amended regulations that g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GAINFUL 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 33 1 were in effect on June 30, 2011, the provisions 2 of the regulations that were in effect on June 3 30, 2011, and were so amended are restored 4 and revived as if the regulations repealed by 5 such subparagraph had not taken effect; and 6 (B) by paragraph (1)(C) amended regula- 7 tions that were in effect on October 31, 2016, 8 the provisions of the regulations that were in 9 effect on October 31, 2016, and were so amend- 10 ed are restored and revived as if the regulations 11 repealed by paragraph (1)(C) had not taken ef- 12 fect. 13 (b) CERTAIN REGULATIONS AND OTHER ACTIONS 14 PROHIBITED.— 15 (1) GAINFUL Secretary of 16 Education shall not, on or after the date of enact- 17 ment of this Act, promulgate or enforce any regula- 18 tion or rule with respect to the definition or applica- 19 tion of the term ‘‘gainful employment’’ for any pur- 20 pose under the Higher Education Act of 1965 (20 21 U.S.C. 1001 et seq.). 22 (2) CREDIT HOUR.—The Secretary of Edu- 23 cation shall not, on or after the date of enactment 24 of this Act, promulgate or enforce any regulation or 25 rule with respect to the definition of the term ‘‘cred- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EMPLOYMENT.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 34 1 it hour’’ for any purpose under the Higher Edu- 2 cation Act of 1965 (20 U.S.C. 1001 et seq.). 3 (3) POSTSECONDARY RATINGS 4 SYSTEM.—The 5 carry out, develop, refine, promulgate, publish, im- 6 plement, administer, or enforce a postsecondary in- 7 stitution ratings system or any other performance 8 system to rate institutions of higher education (as 9 defined in section 101 or 102 of the Higher Edu- 10 12 Secretary of Education shall not cation Act of 1965 (20 U.S.C. 1001; 1002)). 11 PART B—ADDITIONAL GENERAL PROVISIONS SEC. 111. FREE SPEECH PROTECTIONS. 13 Section 112 (20 U.S.C. 1011a) is amended— 14 (1) in subsection (a)— 15 (A) by redesignating paragraph (2) as 16 paragraph (3); and 17 (B) by inserting after paragraph (1) the 18 19 following: ‘‘(2) It is the sense of Congress that— 20 ‘‘(A) free speech zones and restrictive speech 21 codes are inherently at odds with the freedom of 22 speech guaranteed by the First Amendment of the 23 Constitution; and 24 ‘‘(B) no public institution directly or indirectly 25 receiving financial assistance under this Act should g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 INSTITUTION 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 35 1 restrict the speech of such institution’s students 2 through such zones or codes.’’; 3 (2) by redesignating subsections (b) and (c) as 4 subsections (c) and (d), respectively; and 5 (3) by inserting after subsection (a), the fol- 6 lowing: 7 ‘‘(b) DISCLOSURE OF FREE SPEECH POLICIES.—No 8 institution of higher education shall be eligible to receive 9 funds under this Act, including participation in any pro10 gram under title IV, unless the institution certifies to the 11 Secretary that the institution has annually disclosed to 12 current and prospective students any policies held by the 13 institutions related to protected speech on campus, includ14 ing policies limiting where and when such speech may 15 occur.’’. 16 SEC. 112. NATIONAL ADVISORY COMMITTEE ON INSTITU- 17 18 TIONAL QUALITY AND INTEGRITY. Section 114 (20 U.S.C. 1011c) is amended— 19 20 (1) by striking ‘‘section 102’’ each place it appears and inserting ‘‘section 101’’; 21 (2) in subsection (b)— 22 (A) in paragraph (3), by striking ‘‘Except 23 as provided in paragraph (5), the term’’ and in- 24 serting ‘‘The term’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 36 1 (B) by striking paragraph (5) and insert- 2 ing the following: 3 ‘‘(5) SECRETARIAL APPOINTEES.—The Sec- 4 retary may remove any member who was appointed 5 under paragraph (1)(A) by a predecessor of the Sec- 6 retary and may fill the vacancy created by such re- 7 moval in accordance with paragraphs (3) and (4).’’. 8 (3) in subsection (c)— 9 (A) in paragraph (2), by adding ‘‘and’’ at 10 the end; 11 (B) in paragraph (3) by striking the semi- 12 colon at the end an inserting a period; and 13 (C) by striking paragraphs (4) through 14 (6); 15 (4) in subsection (e)(2)(D) by striking ‘‘, in- 16 cluding any additional functions established by the 17 Secretary through regulation’’; and 18 (5) in subsection (f), by striking ‘‘September 19 30, 2017’’ and inserting ‘‘September 30, 2024’’. 20 SEC. 113. REPEAL OF CERTAIN REPORTING REQUIRE- 21 22 MENTS. (a) REPEALS.—The following provisions of the High- 23 er Education Act of 1965 (20 U.S.C. 1001 et seq.) are 24 repealed: 25 (1) Section 117 (20 U.S.C. 1011f). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 37 1 (2) Section 119 (20 U.S.C. 1011h). 2 (b) CONFORMING AMENDMENTS.— 3 (1) section 118 is redesignated as section 117; 4 (2) sections 120, 121, 122, and 123 are redes- 5 ignated as sections 118, 119, 120, and 121, respec- 6 tively; and 7 (3) section 485(f)(1)(H) (20 U.S.C. 8 1092(f)(1)(H)) is amended by striking ‘‘section 9 120’’ and inserting ‘‘section 118’’. 10 SEC. 114. PROGRAMS ON DRUG AND ALCOHOL ABUSE PRE- 11 VENTION. 12 Section 118 (as so redesignated) is amended to read 13 as follows: 14 ‘‘SEC. 118. DRUG AND ALCOHOL ABUSE PREVENTION. 15 ‘‘(a) REQUIRED PROGRAMS.—Each institution of 16 higher education participating in any program under this 17 Act shall adopt and implement a program to prevent the 18 use of illicit drugs and the abuse of alcohol by students 19 and employees that, at a minimum, includes the annual 20 distribution to each student and employee of— 21 ‘‘(1) institutional standards of conduct and 22 sanctions that clearly prohibit and address the un- 23 lawful possession, use, or distribution of illicit drugs 24 and alcohol by students and employees; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 38 1 ‘‘(2) the description of any drug or alcohol 2 counseling, treatment, rehabilitation, or re-entry pro- 3 grams that are available to students or employees. 4 ‘‘(b) INFORMATION AVAILABILITY.—Each institution 5 of higher education described in subsection (a) shall, upon 6 request, make available to the Secretary and to the public 7 a copy of the institutional standards described under sub8 section (a)(1) and information regarding any programs 9 described in subsection (a)(2).’’. 10 SEC. 115. CAMPUS ACCESS FOR RELIGIOUS GROUPS. 11 Part B of title I (20 U.S.C. 1011 et seq.) (as amend- 12 ed by sections 111 through 114 of this part) is amended 13 by adding at the end the following: 14 ‘‘SEC. 122 CAMPUS ACCESS FOR RELIGIOUS GROUPS. 15 ‘‘None of the funds made available under this Act 16 may be provided to any public institution of higher edu17 cation that denies to a religious student organization any 18 right, benefit, or privilege that is generally afforded to 19 other student organizations at the institution (including 20 full access to the facilities of the institution and official 21 recognition of the organization by the institution) because 22 of the religious beliefs, practices, speech, membership 23 standards, or standards of conduct of the religious student 24 organization.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 39 1 SEC. 116. SECRETARIAL PROHIBITIONS. 2 Part B of title I (20 U.S.C. 1011 et seq.) (as amend- 3 ed by sections 111 through 115 of this part) is amended 4 by adding at the end the following: 5 ‘‘SEC. 123. SECRETARIAL PROHIBITIONS. 6 ‘‘(a) IN GENERAL.—Nothing in this Act shall be con- 7 strued to authorize or permit the Secretary to promulgate 8 any rule or regulation that exceeds the scope of the explicit 9 authority granted to the Secretary under this Act. 10 ‘‘(b) DEFINITIONS.—The Secretary shall not define 11 any term that is used in this Act in a manner that is in12 consistent with the scope of this Act, including through 13 regulation or guidance. 14 ‘‘(c) REQUIREMENTS.—The Secretary shall not im- 15 pose, on an institution or State as a condition of participa16 tion in any program under this Act, any requirement that 17 exceeds the scope of the requirements explicitly set forth 18 in this Act for such program.’’. 19 SEC. 117. ENSURING EQUAL TREATMENT BY GOVERN- 20 21 MENTAL ENTITIES. Part B of title I (20 U.S.C. 1011 et seq.) (as amend- 22 ed by sections 111 through 116 of this part) is further 23 amended by adding at the end the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 40 1 ‘‘SEC. 124. ENSURING EQUAL TREATMENT BY GOVERN- 2 3 MENTAL ENTITIES. ‘‘(a) IN GENERAL.—Notwithstanding any other pro- 4 vision of law, no government entity shall take any adverse 5 action against an institution of higher education that re6 ceives funding under title IV, if such adverse action— 7 8 ‘‘(1)(A) is being taken by a government entity that— 9 ‘‘(i) is a department, agency, or instrumen- 10 tality of the Federal Government; or 11 ‘‘(ii) receives Federal funds; or 12 ‘‘(B) would affect commerce with foreign na- 13 tions, among the several States, or with Indian 14 Tribes; and 15 ‘‘(2) has the effect of prohibiting or penalizing 16 the institution for acts or omissions by the institu- 17 tion that are in furtherance of its religious mission 18 or are related to the religious affiliation of the insti- 19 tution. 20 ‘‘(b) ASSERTION BY INSTITUTION.—An actual or 21 threatened violation of subsection (a) may be asserted by 22 an institution of higher education that receives funding 23 under title IV as a claim or defense in a proceeding before 24 any court. The court shall grant any appropriate equitable 25 relief, including injunctive or declaratory relief. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 41 1 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec- 2 tion shall be construed to alter or amend— 3 4 ‘‘(1) title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.); 5 ‘‘(2) section 182 of the Elementary and Sec- 6 ondary Education Amendments Act of 1966 (42 7 U.S.C. 2000d–5); or 8 ‘‘(3) section 2 of the Elementary and Secondary 9 Education Amendments Act of 1969 (42 U.S.C. 10 2000d–6) 11 ‘‘(d) DEFINITIONS.—In this section: 12 ‘‘(1) ADVERSE term ‘adverse ac- 13 tion’ includes, with respect to an institution of high- 14 er education or the past, current, or prospective stu- 15 dents of such institution— 16 ‘‘(A) the denial or threat of denial of fund- 17 ing, including grants, scholarships, or loans; 18 ‘‘(B) the denial or threat of denial of ac- 19 cess to facilities or programs; 20 ‘‘(C) the withholding or threat of with- 21 holding of any licenses, permits, certifications, 22 accreditations, contracts, cooperative agree- 23 ments, grants, guarantees, tax-exempt status, 24 or exemptions; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ACTION.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 42 1 ‘‘(D) any other penalty or denial, or threat 2 of such other penalty or denial, of an otherwise 3 available benefit. 4 ‘‘(2) GOVERNMENT 5 ernment entity’ means— 6 term ‘gov- ‘‘(A) any department, agency, or instru- 7 mentality of the Federal Government; 8 ‘‘(B) a State or political subdivision of a 9 State, or any agency or instrumentality thereof; 10 and 11 ‘‘(C) any interstate or other inter-govern- 12 mental entity. 13 ‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 14 The term ‘institution of higher education’ has the 15 meaning given the term in section 101 or 102. 16 ‘‘(4) RELIGIOUS MISSION.—The term ‘religious 17 mission’ includes an institution of higher education’s 18 religious tenets, beliefs, or teachings, and any poli- 19 cies or decisions related to such tenets, beliefs, or 20 teachings (including any policies or decisions con- 21 cerning housing, employment, curriculum, self-gov- 22 ernance, or student admission, continuing enroll- 23 ment, or graduation).’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ENTITY.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 43 1 2 PART C—COST OF HIGHER EDUCATION SEC. 121. COLLEGE DASHBOARD WEBSITE. 3 (a) ESTABLISHMENT.—Section 132 (20 U.S.C. 4 1015a) is amended— 5 (1) in subsection (a)— 6 (A) by striking paragraph (1) and insert- 7 ing the following new paragraph: 8 ‘‘(1) COLLEGE WEBSITE.—The 9 term ‘College Dashboard website’ means the College 10 Dashboard website required under subsection (d).’’. 11 (B) in paragraph (2), by striking ‘‘first- 12 time,’’; 13 (C) in paragraph (3), in the matter pre- 14 ceding subparagraph (A), by striking ‘‘first- 15 time,’’; and 16 (D) in paragraph (4), by striking ‘‘first- 17 time,’’; 18 (2) in subsection (b)— 19 (A) in paragraph (1), by striking ‘‘first- 20 time,’’; and 21 (B) in paragraph (2), by striking ‘‘first- 22 time,’’; 23 (3) by striking subsections (c) through (g), (j), 24 and (l); 25 (4) by redesignating subsections (h), (i), and 26 (k) as subsections (c), (d), and (e), respectively; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DASHBOARD 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 44 1 (5) by striking subsection (d) (as so redesig- 2 nated) and inserting the following new subsection: 3 ‘‘(d) CONSUMER INFORMATION.— 4 ‘‘(1) AVAILABILITY 5 INFORMATION.—The 6 make publicly available a website to be known as the 7 ‘College Dashboard website’ in accordance with this 8 section and prominently display on such website, in 9 simple, understandable, and unbiased terms for the 10 most recent academic year for which satisfactory 11 data are available, the following information with re- 12 spect to each institution of higher education that 13 participates in a program under title IV: 14 tion. 16 ‘‘(B) An identification of the type of insti- 17 tution as one of the following: 18 ‘‘(i) A four-year public institution of 19 higher education. 20 ‘‘(ii) A four-year private, nonprofit in- 21 stitution of higher education. 22 ‘‘(iii) A four-year private, proprietary 23 institution of higher education. 24 ‘‘(iv) A two-year public institution of 25 higher education. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 Secretary shall develop and ‘‘(A) A link to the website of the institu- 15 VerDate 0ct 09 2002 OF TITLE IV INSTITUTION Jkt 000000 (680541 26) PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 45 1 ‘‘(v) A two-year private, nonprofit in- 2 stitution of higher education. 3 ‘‘(vi) A two-year private, proprietary 4 institution of higher education. 5 ‘‘(vii) A less than two-year public in- 6 stitution of higher education. 7 ‘‘(viii) A less than two-year private, 8 nonprofit institution of higher education. 9 ‘‘(ix) A less than two-year private, 10 proprietary institution of higher education. 11 ‘‘(C) The number of students enrolled at 12 the institution— 13 ‘‘(i) as undergraduate students, if ap- 14 plicable; and 15 ‘‘(ii) as graduate students, if applica- 16 ble. 17 ‘‘(D) The student-faculty ratio. 18 ‘‘(E) The percentage of degree-seeking or 19 certificate-seeking undergraduate students en- 20 rolled at the institution who obtain a degree or 21 certificate within— 22 ‘‘(i) 100 percent of the normal time 23 for completion of, or graduation from, the 24 program in which the student is enrolled; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 46 1 ‘‘(ii) 150 percent of the normal time 2 for completion of, or graduation from, the 3 program in which the student is enrolled; 4 and 5 ‘‘(iii) 200 percent of the normal time 6 for completion of, or graduation from, the 7 program in which the student is enrolled. 8 ‘‘(F)(i) The average net price per year for 9 undergraduate students enrolled at the institu- 10 tion who received Federal student financial aid 11 under title IV based on dependency status and 12 an income category selected by the user of the 13 College Dashboard website from a list con- 14 taining the following income categories: 15 ‘‘(I) $0 to $30,000. 16 ‘‘(II) $30,001 to $48,000. 17 ‘‘(III) $48,001 to $75,000. 18 ‘‘(IV) $75,001 to $110,000. 19 ‘‘(V) $110, 001 to $150,000. 20 ‘‘(VI) Over $150,000. 21 ‘‘(ii) A link to the net price calculator for 22 such institution. 23 ‘‘(G) The percentage of undergraduate and 24 graduate students who obtained a certificate or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 47 1 degree from the institution who borrowed Fed- 2 eral student loans— 3 ‘‘(i) set forth separately for each edu- 4 cational program offered by the institution; 5 and 6 ‘‘(ii) made available in a format that 7 allows a user of the College Dashboard 8 website to view such percentage by select- 9 ing from a list of such educational pro- 10 grams. 11 ‘‘(H) The average Federal student loan 12 debt incurred by a student who obtained a cer- 13 tificate or degree in an educational program 14 from the institution and who borrowed Federal 15 student loans in the course of obtaining such 16 certificate or degree— 17 ‘‘(i) set forth separately for each edu- 18 cational program offered by the institution; 19 and 20 ‘‘(ii) made available in a format that 21 allows a user of the College Dashboard 22 website to view such student loan debt in- 23 formation by selecting from a list of such 24 educational programs. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 48 1 ‘‘(I) The median earnings of students who 2 obtained a certificate or degree in an edu- 3 cational program from the institution and who 4 received Federal student financial aid under 5 title IV in the course of obtaining such certifi- 6 cate or degree— 7 ‘‘(i) in the fifth and tenth years fol- 8 lowing the year in which the students ob- 9 tained such certificate or degree; 10 ‘‘(ii) set forth separately by edu- 11 cational program; and 12 ‘‘(iii) made available in a format that 13 allows a user of the College Dashboard 14 website to view such median earnings in- 15 formation by selecting from a list of such 16 educational programs. 17 ‘‘(J) A link to the webpage of the institu- 18 tion containing campus safety data with respect 19 to such institution. 20 ‘‘(2) ADDITIONAL Sec- 21 retary shall publish on websites that are linked to 22 through the College Dashboard website, for the most 23 recent academic year for which satisfactory data is 24 available, the following information with respect to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 INFORMATION.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 49 1 each institution of higher education that participates 2 in a program under title IV: 3 ‘‘(A) ENROLLMENT.—The following enroll- 4 ment information: 5 ‘‘(i) The percentages of male and fe- 6 male undergraduate students enrolled at 7 the institution. 8 ‘‘(ii) 9 percentages of under- graduate students enrolled at the institu- 10 tion— 11 ‘‘(I) full-time; and 12 ‘‘(II) less than full-time. 13 ‘‘(iii) In the case of an institution 14 other than an institution that provides all 15 courses and programs through online edu- 16 cation, of the undergraduate students en- 17 rolled at the institution— 18 ‘‘(I) the percentage of such stu- 19 dents who are residents of the State 20 in which the institution is located; 21 ‘‘(II) the percentage of such stu- 22 dents who are not residents of such 23 State; and 24 ‘‘(III) the percentage of such stu- 25 dents who are international students. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 50 1 ‘‘(iv) percentages of under- 2 graduate students enrolled at the institu- 3 tion, disaggregated by— 4 ‘‘(I) race and ethnic background; 5 ‘‘(II) classification as a student 6 with a disability; 7 ‘‘(III) recipients of a Federal Pell 8 Grant; 9 ‘‘(IV) recipients of assistance 10 under a tuition assistance program 11 conducted by the Department of De- 12 fense under section 1784a or 2007 of 13 title 10, United States Code, or other 14 authorities available to the Depart- 15 ment of Defense or veterans’ edu- 16 cation benefits (as defined in section 17 480); and 18 ‘‘(V) recipients of a Federal stu- 19 dent loan. 20 ‘‘(B) COMPLETION.—The information re- 21 quired under paragraph (1)(E), disaggregated 22 by— 23 ‘‘(i) recipients of a Federal Pell 24 Grant; 25 ‘‘(ii) race and ethnic background; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 51 1 ‘‘(iii) classification as a student with a 2 disability; 3 ‘‘(iv) recipients of assistance under a 4 tuition assistance program conducted by 5 the Department of Defense under section 6 1784a or 2007 of title 10, United States 7 Code, or other authorities available to the 8 Department of Defense or veterans’ edu- 9 cation benefits (as defined in section 480); 10 and 11 ‘‘(v) recipients of a Federal student 12 loan. 13 ‘‘(C) COSTS.—The following cost informa- 14 tion: 15 ‘‘(i) The cost of attendance for full- 16 time undergraduate students enrolled in 17 the institution who live on campus. 18 ‘‘(ii) The cost of attendance for full- 19 time undergraduate students enrolled in 20 the institution who live off campus. 21 ‘‘(iii) The cost of tuition and fees for 22 full-time undergraduate students enrolled 23 in the institution. 24 ‘‘(iv) The cost of tuition and fees per 25 credit hour or credit hour equivalency for g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 52 1 undergraduate students enrolled in the in- 2 stitution less than full time. 3 ‘‘(v) In the case of a public institution 4 of higher education (other than an institu- 5 tion described in clause (vi)) and notwith- 6 standing subsection (b)(1), the costs de- 7 scribed in clauses (i) and (ii) for— 8 ‘‘(I) full-time students enrolled in 9 the institution who are residents of 10 the State in which the institution is 11 located; and 12 ‘‘(II) full-time students enrolled 13 in the institution who are not resi- 14 dents of such State. 15 ‘‘(vi) In the case of a public institu- 16 tion of higher education that offers dif- 17 ferent tuition rates for students who are 18 residents of a geographic subdivision small- 19 er than a State and students not located in 20 such geographic subdivision and notwith- 21 standing subsection (b)(1), the costs de- 22 scribed in clauses (i) and (ii) for— 23 ‘‘(I) full-time students enrolled at 24 the institution who are residents of 25 such geographic subdivision; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 53 1 ‘‘(II) full-time students enrolled 2 at the institution who are residents of 3 the State in which the institution is 4 located but not residents of such geo- 5 graphic subdivision; and 6 ‘‘(III) full-time students enrolled 7 at the institution who are not resi- 8 dents of such State. 9 ‘‘(D) FINANCIAL 10 following in- formation with respect to financial aid: 11 ‘‘(i) The average annual grant amount 12 (including Federal, State, and institutional 13 aid) awarded to an undergraduate student 14 enrolled at the institution who receives 15 grant aid, and the percentage of under- 16 graduate students receiving such aid. 17 ‘‘(ii) The percentage of undergraduate 18 students enrolled at the institution receiv- 19 ing 20 grants, student loans, and any other type 21 of student financial assistance known by 22 the 23 through the institution, such as Federal 24 work-study funds. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AID.—The 08:59 Dec 01, 2017 Jkt 000000 Federal, State, institution, and provided institutional publicly or (680541 26) PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 54 1 ‘‘(iii) The loan repayment rate (as de- 2 fined in section 481B) for each educational 3 program at such institution. 4 ‘‘(3) OTHER 5 ‘‘(A) COMPLETION DATA.—The Commis- 6 sioner of Education Statistics shall ensure that 7 the information required under paragraph 8 (1)(E) includes information with respect to all 9 students at an institution, including students 10 other than first-time, full-time students and 11 students who transfer to another institution, in 12 a manner that the Commissioner considers ap- 13 propriate. 14 ‘‘(B) ADJUSTMENT OF INCOME CAT- 15 EGORIES.—The 16 the range of each of the income categories de- 17 scribed in paragraph (1)(F) to account for a 18 change in the Consumer Price Index for All 19 Urban Consumers as determined by the Bureau 20 of Labor Statistics if the Secretary determines 21 an adjustment is necessary. 22 ‘‘(4) INSTITUTIONAL Secretary may annually adjust COMPARISON.—The Sec- 23 retary shall include on the College Dashboard 24 website a method for users to easily compare the in- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DATA MATTERS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 55 1 formation required under paragraphs (1) and (2) be- 2 tween institutions. 3 ‘‘(5) UPDATES.— 4 ‘‘(A) DATA.—The Secretary shall update 5 the College Dashboard website not less than an- 6 nually. 7 ‘‘(B) TECHNOLOGY FORMAT.—The 8 Secretary shall regularly assess the format and 9 technology of the College Dashboard website 10 and make any changes or updates that the Sec- 11 retary considers appropriate. 12 ‘‘(6) CONSUMER 13 ‘‘(A) IN TESTING.— GENERAL.—In developing and 14 maintaining the College Dashboard website, the 15 Secretary, in consultation with appropriate de- 16 partments and agencies of the Federal Govern- 17 ment, shall conduct consumer testing with ap- 18 propriate persons, including current and pro- 19 spective college students, family members of 20 such students, institutions of higher education, 21 and experts, to ensure that the College Dash- 22 board website is usable and easily understand- 23 able and provides useful and relevant informa- 24 tion to students and families. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 56 1 ‘‘(B) FOR 2 CHANGES.—The 3 authorizing committees any recommendations 4 that the Secretary considers appropriate for 5 changing the information required to be pro- 6 vided on the College Dashboard website under 7 paragraphs (1) and (2) based on the results of 8 the consumer testing conducted under subpara- 9 graph (A). 10 ‘‘(7) PROVISION Secretary shall submit to the OF APPROPRIATE LINKS TO 11 PROSPECTIVE 12 FAFSA.—The Secretary shall provide to each stu- 13 dent who submits a Free Application for Federal 14 Student Aid described in section 483 a link to the 15 webpage of the College Dashboard website that con- 16 tains the information required under paragraph (1) 17 for each institution of higher education such student 18 includes on such Application. 19 ‘‘(8) INTERAGENCY STUDENTS AFTER SUBMISSION COORDINATION.—The OF Sec- 20 retary, in consultation with each appropriate head of 21 a department or agency of the Federal Government, 22 shall ensure to the greatest extent practicable that 23 any information related to higher education that is 24 published by such department or agency is con- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RECOMMENDATIONS 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 57 1 sistent with the information published on the College 2 Dashboard website. 3 ‘‘(9) DATA COLLECTION.—The Commissioner 4 for Education Statistics shall continue to update and 5 improve the Integrated Postsecondary Education 6 Data System, including by reducing institutional re- 7 porting burden and improving the timeliness of the 8 data collected. 9 ‘‘(10) DATA PRIVACY.—The Secretary shall en- 10 sure any information made available under this sec- 11 tion is made available in accordance with section 12 444 of the General Education Provisions Act (com- 13 monly known as the ‘Family Educational Rights and 14 Privacy Act of 1974’).’’. 15 (b) CONFORMING AMENDMENTS.—The Higher Edu- 16 cation Act of 1965 (20 U.S.C. 1001 et seq.), as amended 17 by subsection (a) of this section, is further amended, by 18 striking ‘‘College Navigator’’ each place it appears and in19 serting ‘‘College Dashboard’’. 20 (c) REFERENCES.—Any reference in any law (other 21 than this Act), regulation, document, record, or other 22 paper of the United States to the College Navigator 23 website shall be considered to be a reference to the College 24 Dashboard website. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 58 1 (d) DEVELOPMENT.—The Secretary of Education 2 shall develop and publish the College Dashboard website 3 required under section 132 (20 U.S.C. 1015a), as amend4 ed by this section, not later than one year after the date 5 of the enactment of this Act. 6 7 (e) COLLEGE NANCE.—The NAVIGATOR WEBSITE MAINTE- Secretary shall maintain the College Navi- 8 gator website required under section 132 (20 U.S.C. 9 1015a), as in effect the day before the date of the enact10 ment of this Act, in the manner required under the Higher 11 Education Act of 1965, as in effect on such day, until 12 the College Dashboard website referred to in subsection 13 (d) is complete and publicly available on the Internet. 14 SEC. 122. NET PRICE CALCULATORS. 15 Subsection (c) of section 132 (20 U.S.C. 1015a), as 16 so redesignated by section 121(a)(4) of this Act, is amend17 ed— 18 19 (1) by redesignating paragraph (4) as paragraph (6); and 20 (2) by inserting after paragraph (3) the fol- 21 lowing new paragraphs: 22 ‘‘(4) MINIMUM 23 CALCULATORS.—Not 24 of the enactment of the PROSPER Act, a net price g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REQUIREMENTS FOR NET PRICE 08:59 Dec 01, 2017 Jkt 000000 later than 1 year after the date (680541 26) PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 59 1 calculator for an institution of higher education shall 2 meet the following requirements: 3 ‘‘(A) The link for the calculator shall— 4 ‘‘(i) be clearly labeled as a net price 5 calculator and prominently, clearly, and 6 conspicuously posted in locations on the 7 website of such institution where informa- 8 tion on costs and aid is provided and any 9 other location that the institution considers 10 appropriate; and 11 ‘‘(ii) match in size and font to the 12 other prominent links on the webpage 13 where the link for the calculator is dis- 14 played. 15 ‘‘(B) The webpage displaying the results 16 for the calculator shall specify at least the fol- 17 lowing information: 18 ‘‘(i) The net price (as calculated 19 under subsection (a)(3)) for such institu- 20 tion, which shall be the most visually 21 prominent figure on the results screen. 22 ‘‘(ii) Cost of attendance, including— 23 ‘‘(I) tuition and fees; 24 ‘‘(II) average annual cost of 25 room and board for the institution for g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 60 1 a full-time undergraduate student en- 2 rolled in the institution; 3 ‘‘(III) average annual cost of 4 books and supplies for a full-time un- 5 dergraduate student enrolled in the 6 institution; and 7 ‘‘(IV) estimated cost of other ex- 8 penses (including personal expenses 9 and transportation) for a full-time un- 10 dergraduate student enrolled in the 11 institution. 12 ‘‘(iii) total need-based 13 grant aid and merit-based grant aid from 14 Federal, State, and institutional sources 15 that may be available to a full-time under- 16 graduate student. 17 ‘‘(iv) Percentage of the full-time un- 18 dergraduate students enrolled in the insti- 19 tution that received any type of grant aid 20 described in clause (iii). 21 ‘‘(v) The disclaimer described in para- 22 graph (6). 23 ‘‘(vi) In the case of a calculator 24 that— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 Estimated 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 61 1 ‘‘(I) includes questions to esti- 2 mate the eligibility of a student or 3 prospective student for veterans’ edu- 4 cation benefits (as defined in section 5 480) or educational benefits for active 6 duty service members, such benefits 7 are displayed on the results screen in 8 a manner that clearly distinguishes 9 such benefits from the grant aid de- 10 scribed in clause (iii); or 11 ‘‘(II) does not include questions 12 to estimate eligibility for the benefits 13 described in subclause (I), the results 14 screen indicates that certain students 15 (or prospective students) may qualify 16 for such benefits and includes a link 17 to information about such benefits. 18 ‘‘(C) The institution shall populate the cal- 19 culator with data from an academic year that 20 is not more than 2 academic years prior to the 21 most recent academic year. 22 ‘‘(5) PROHIBITION USE OF DATA COL- 23 LECTED BY THE NET PRICE CALCULATOR.—A 24 price calculator for an institution of higher edu- 25 cation shall— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ON 08:59 Dec 01, 2017 Jkt 000000 net (680541 26) PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 62 1 ‘‘(A) clearly indicate which questions are 2 required to be completed for an estimate of the 3 net price from the calculator; 4 ‘‘(B) in the case of a calculator that re- 5 quests contact information from users, clearly 6 mark such requests as optional and provide for 7 an estimate of the net price from the calculator 8 without requiring users to enter such informa- 9 tion; and 10 ‘‘(C) prohibit any personally identifiable in- 11 formation provided by users from being sold or 12 made available to third parties.’’. 13 SEC. 123. TEXT BOOK INFORMATION. 14 Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amend- 15 ed by striking ‘‘section 102’’ and inserting ‘‘section 101 16 or 102’’. 17 PART D—ADMINISTRATIVE PROVISIONS FOR 18 DELIVERY OF STUDENT FINANCIAL ASSISTANCE 19 SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE 20 DELIVERY OF FEDERAL STUDENT FINANCIAL 21 ASSISTANCE. 22 Section 141 (20 U.S.C. 1018) is amended— 23 (1) in subsection (a)(2)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 63 1 (A) by redesignating subparagraphs (F) 2 and (G) as subparagraphs (H) and (I), respec- 3 tively; and 4 (B) by inserting after subparagraph (E) 5 the following: 6 ‘‘(F) to maximize transparency in the op- 7 eration of Federal student financial assistance 8 programs; 9 ‘‘(G) to maximize stakeholder engagement 10 in the operation of and accountability for such 11 programs;’’; 12 (2) in subsection (b)— 13 (A) in paragraph (1)(C)— 14 (i) in clause (i), by striking ‘‘and’’ at 15 the end; 16 (ii) in clause (ii), by striking the pe- 17 riod at the end and inserting ‘‘; and’’; and 18 (iii) by adding at the end the fol- 19 lowing: 20 ‘‘(iii) acquiring senior managers and 21 other personnel with demonstrated man- 22 agement ability and expertise in consumer 23 lending.’’; 24 (B) in paragraph (2) by adding at the end 25 the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 64 1 ‘‘(C) Collecting input from stakeholders on 2 the operation of all Federal student assistance 3 programs and accountability practices relating 4 to such programs, and ensuring that such input 5 informs operation of the PBO and is provided 6 to the Secretary to inform policy creation re- 7 lated to Federal student financial assistance 8 programs.’’; and 9 (C) in paragraph (6)— 10 (i) in subparagraph (A), by striking 11 ‘‘The Secretary’’ and inserting ‘‘Not less 12 frequently than once annually, the Sec- 13 retary’’; 14 (ii) by redesignating subparagraph 15 (B) as subparagraph (C); and 16 (iii) by inserting after subparagraph 17 (A) the following: : 18 ‘‘(B) REPORT.—On an annual basis, after 19 carrying out the consultation required under 20 subparagraph (A), the Secretary and the Chief 21 Operating Officer shall jointly submit to the au- 22 thorizing committees a report that includes— 23 ‘‘(i) a summary of the consultation; 24 and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 65 1 ‘‘(ii) a description of any actions 2 taken as a result of the consultation..’’. 3 (3) in subsection (c)— 4 (A) in paragraph (1)— 5 (i) in subparagraph (A)— 6 (I) by striking ‘‘Each year,’’ and 7 inserting ‘‘Not less frequently than 8 once every three years’’; and 9 (II) by striking ‘‘succeeding 5’’ 10 and inserting ‘‘succeeding 3’’; 11 (ii) by amending subparagraph (B) to 12 read as follows: 13 ‘‘(B) CONSULTATION.— 14 ‘‘(i) DEVELOPMENT.—Begin- 15 ning not later than 12 months before 16 issuing each 3-year performance plan 17 under subparagraph (A), the Secretary and 18 the Chief Operating Officer shall consult 19 with students, institutions of higher edu- 20 cation, Congress, lenders, and other inter- 21 ested parties regarding the development of 22 the plan. In carrying out such consulta- 23 tion, the Secretary shall seek public com- 24 ment consistent with the requirements of 25 subchapter II of chapter 5 of title 5, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PLAN 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 66 1 United States Code (commonly known as 2 the ‘Administrative Procedure Act’). 3 ‘‘(ii) REVISION.—Not later than 90 4 days before implementing any revision to 5 the performance plan described in subpara- 6 graph (A), the Secretary shall consult with 7 students, institutions of higher education, 8 Congress, lenders, and other interested 9 parties regarding such revision.’’; 10 (iii) in subparagraph (C)— 11 (I) in the matter preceding clause 12 (i), by inserting ‘‘and target dates 13 upon which such action steps will be 14 taken and such goals will be achieved’’ 15 after ‘‘achieve such goals’’; 16 (II) by redesignating clause (v) 17 as clause (vi); 18 (III) by inserting after clause (iv) 19 the following: 20 ‘‘(v) TRANSPARENCY.— 21 Maximizing the transparency in the oper- 22 ations of the PBO, including complying 23 with 24 under section 144.’’; 25 (B) in paragraph (2)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ENSURING 08:59 Dec 01, 2017 Jkt 000000 the data reporting requirements (680541 26) PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 67 1 (i) by striking ‘‘5-year’’ and inserting 2 ‘‘3-year’’; 3 (ii) in subparagraph (C), by inserting 4 ‘‘, including an explanation of the specific 5 steps the Secretary and the Chief Oper- 6 ating Officer will take to address any such 7 goals that were not achieved’’ before the 8 period; 9 (iii) in subparagraph (D), by inserting 10 ‘‘, in the aggregate and per individual’’ be- 11 fore the period; 12 (iv) in subparagraph (E), by striking 13 ‘‘Recommendations’’ and inserting ‘‘Spe- 14 cific recommendations’’; 15 (v) by redesignating subparagraph (F) 16 as subparagraph (G); and 17 (vi) by inserting after subparagraph 18 (E), the following: 19 ‘‘(F) A description of the performance 20 evaluation system developed under subsection 21 (d)(6).’’. 22 (C) in paragraph (3)— 23 (i) in the matter preceding subpara- 24 graph (A), by striking ‘‘establish appro- 25 priate means to’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 68 1 (ii) in subparagraph (A), by striking 2 ‘‘; and’’ and inserting ‘‘and the PBO;’’; 3 (iii) in subparagraph (B), by striking 4 the period at the end and inserting ‘‘and 5 the PBO; and’’; and 6 (iv) by adding at the end the fol- 7 lowing: 8 ‘‘(C) through a nationally-representative 9 survey, that at a minimum shall evaluate the 10 degree of satisfaction with the delivery system 11 and the PBO.’’; 12 (4) in subsection (d)— 13 (A) in paragraph (2), by striking ‘‘The 14 Secretary may reappoint’’ and inserting ‘‘Ex- 15 cept as provided in paragraph (4)(C),’’ 16 (B) in paragraph (4)— 17 (i) in subparagraph (A)— 18 (I) by inserting ‘‘specific, meas- 19 urable’’ after ‘‘set forth’’; and 20 (II) by inserting ‘‘and metrics 21 used to measure progress toward such 22 goals’’ before the period; 23 (ii) by amending subparagraph (B) to 24 read as follows: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 69 1 ‘‘(B) TRANSMITTAL 2 ABILITY.—The Secretary shall— 3 ‘‘(i) transmit to the authorizing com- 4 mittees the final version of, and any subse- 5 quent revisions to, the agreement entered 6 into under subparagraph (A); and 7 ‘‘(ii) before the expiration of the pe- 8 riod of 5 business days beginning after the 9 date on which the agreement is trans- 10 mitted under clause (i), make such agree- 11 ment publicly available on a publicly acces- 12 sible website of the Department of Edu- 13 cation.’’. 14 (iii) by adding at the end the fol- 15 lowing: 16 ‘‘(C) LOSS OF ELIGIBILITY.—If the agree- 17 ment under subparagraph (A) is not made pub- 18 licly available before the expiration of the period 19 described in subparagraph (B)(ii), the Chief 20 Operating Officer shall not be eligible for re- 21 appointment under paragraph (2).’’; and 22 (C) in paragraph (5), by amending sub- 23 paragraph (B) to read as follows: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND PUBLIC AVAIL- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 70 1 ‘‘(B) BONUS.—In addition, the Chief Op- 2 erating Officer may receive a bonus in the fol- 3 lowing amounts: 4 ‘‘(i) For a period covered by a per- 5 formance agreement entered into under 6 paragraph (4) before the date of the enact- 7 ment of the PROSPER Act, an amount 8 that does not exceed 50 percent of the an- 9 nual rate basic pay of the Chief Operating 10 Officer, based upon the Secretary’s evalua- 11 tion of the Chief Operating Officer’s per- 12 formance in relation to the goals set forth 13 in the performance agreement. 14 ‘‘(ii) For a period covered by a per- 15 formance agreement entered into under 16 paragraph (4) on or after the date of the 17 enactment of the PROSPER Act, an 18 amount that does not exceed 40 percent of 19 the annual rate basic pay of the Chief Op- 20 erating Officer, based upon the Secretary’s 21 evaluation of the Chief Operating Officer’s 22 performance in relation to the goals set 23 forth in the performance agreement.’’. 24 (D) by adding at the end the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 71 1 ‘‘(6) PERFORMANCE SYSTEM.— 2 The Secretary shall develop a system to evaluate the 3 performance of the Chief Operating Officer and any 4 senior managers appointed by such Officer under 5 subsection (e). Such system shall— 6 ‘‘(A) take into account the extent to which 7 each individual attains the specific, measurable 8 organizational and individual goals set forth in 9 the performance agreement described in para- 10 graph (4)(A) and subsection (e)(2) (as the case 11 may be); and 12 ‘‘(B) evaluate each individual using a rat- 13 ing system that accounts for the full spectrum 14 of performance levels, from the failure of an in- 15 dividual to meet the goals described in clause 16 (i) to an individual’s success in meeting or ex- 17 ceeding such goals.’’; 18 (5) in subsection (e)— 19 (A) in paragraph (2), by striking ‘‘organi- 20 zation and individual goals’’ and inserting ‘‘spe- 21 cific, measurable organization and individual 22 goals and the metrics used to measure progress 23 toward such goals’’; 24 (B) in paragraph (3), by amending sub- 25 paragraph (B) to read as follows: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EVALUATION 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 72 1 ‘‘(B) BONUS.—In addition, a senior man- 2 ager may receive a bonus in the following 3 amounts: 4 ‘‘(i) For a period covered by a per- 5 formance agreement entered into under 6 paragraph (2) before the date of the enact- 7 ment of the PROSPER Act, an amount 8 such that the manager’s total annual com- 9 pensation does not exceed 125 percent of 10 the maximum rate of basic pay for the 11 Senior Executive Service, including any ap- 12 plicable locality-based comparability pay- 13 ment, based upon the Chief Operating Of- 14 ficer’s evaluation of the manager’s per- 15 formance in relation to the goals set forth 16 in the performance agreement. 17 ‘‘(ii) For a period covered by a per- 18 formance agreement entered into under 19 paragraph (2) on or after the date of the 20 enactment of the PROSPER Act, an 21 amount such that the manager’s total an- 22 nual compensation does not exceed 120 23 percent of the maximum rate of basic pay 24 for the Senior Executive Service, including 25 any applicable locality-based comparability g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 73 1 payment, based upon the Chief Operating 2 Officer’s evaluation of the manager’s per- 3 formance in relation to the goals set forth 4 in the performance agreement.’’. 5 6 (6) by redesignating subsections (f), (g), (h), and (i) as subsections (g), (h), (i), (j); and 7 (7) by inserting after subsection (e) the fol- 8 lowing: 9 ‘‘(f) ADVISORY BOARD.— 10 ‘‘(1) ESTABLISHMENT PURPOSE.—Not 11 later than one year after the date of the enactment 12 of the PROSPER Act, the Secretary shall establish 13 an Advisory Board (referred to in this subsection as 14 the ‘Board’) for the PBO. The purpose of such 15 Board shall be to conduct oversight over the PBO 16 and the Chief Operating Officer and senior man- 17 agers described under subsection (e) to ensure that 18 the PBO is meeting the purposes described in this 19 section and the goals in the performance plan de- 20 scribed under such section. 21 ‘‘(2) MEMBERSHIP.— 22 ‘‘(A) BOARD MEMBERS.—The Board shall 23 consist of 7 members, one of whom shall be the 24 Secretary. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 74 1 ‘‘(B) CHAIRMAN.—A Chairman of the 2 Board shall be elected by the Board from 3 among its members for a 2-year term. 4 ‘‘(C) SECRETARY 5 BER.—The 6 Secretary, ex officio— ‘‘(i) shall— 7 ‘‘(I) serve as a member of the 8 Board; 9 ‘‘(II) be a voting member of the 10 Board; and 11 ‘‘(III) be eligible to be elected by 12 the Board to serve as chairman or 13 vice chairman of the Board; and 14 ‘‘(ii) shall not be subject to the terms 15 or compensation requirements described in 16 this paragraph that are applicable to the 17 other members of the Board. 18 ‘‘(D) ADDITIONAL BOARD MEMBERS.— 19 Each member of the Board (excluding the Sec- 20 retary) shall be appointed by the Secretary. 21 ‘‘(E) TERMS.— 22 ‘‘(i) IN GENERAL.—Each Board mem- 23 ber, except for the Secretary and the 24 Board members described in clause (ii)(II), 25 shall serve 5-year terms. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AS AN EX OFFICIO MEM- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 75 1 ‘‘(ii) INITIAL 2 ‘‘(I) FIRST 3 MEMBERS.—The 3 first 3 members confirmed to serve on 4 the Board after the date of enactment 5 of the PROSPER Act shall serve for 6 5-year terms. 7 ‘‘(II) OTHER MEMBERS.—The 8 fourth, fifth, and sixth members con- 9 firmed to serve on the Board after 10 such date of enactment shall serve for 11 3-year terms. 12 ‘‘(iii) REAPPOINTMENT.—The Sec- 13 retary may reappoint a Board member for 14 one additional 5-year term. 15 ‘‘(iv) VACANCIES.— 16 ‘‘(I) IN GENERAL.—Not later 17 than 30 days after a vacancy of the 18 Board occurs, the Secretary shall pub- 19 lish a Federal Register notice solic- 20 iting nominations for the position. 21 ‘‘(II) FILLING VACANCY.—Not 22 later than 90 days after such vacancy 23 occurs, such vacancy shall be filled in 24 the same manner as the original ap- 25 pointment was made, except that— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 MEMBERS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 76 1 ‘‘(aa) the appointment shall 2 be for the remainder of the 3 uncompleted term; and 4 ‘‘(bb) such member may be 5 reappointed under clause (iii). 6 ‘‘(F) MEMBERSHIP 7 PROHIBITIONS.— 8 ‘‘(i) QUALIFICATIONS.—The members 9 of the board, other than the Secretary, 10 shall be appointed without regard to polit- 11 ical affiliation and solely on the basis of 12 their professional experience and expertise 13 in— 14 ‘‘(I) the management of large 15 and financially significant organiza- 16 tions, including banks and commercial 17 lending companies; or 18 ‘‘(II) Federal student financial 19 assistance programs. 20 ‘‘(ii) CONFLICTS OF INTEREST AMONG 21 BOARD 22 members of the Board, the Secretary shall 23 establish rules and procedures to address 24 any potential conflict of interest between a 25 member of the Board and responsibilities g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 QUALIFICATIONS AND 08:59 Dec 01, 2017 Jkt 000000 MEMBERS.—Before appointing (680541 26) PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 77 1 of the Board, including prohibiting mem- 2 bership for individuals with a pecuniary in- 3 terest in the activities of the PBO. 4 ‘‘(G) NO 5 mem- bers shall serve without pay. 6 ‘‘(H) EXPENSES OF BOARD MEMBERS.— 7 Each member of the Board shall receive travel 8 expenses and other permissible expenses, in- 9 cluding per diem in lieu of subsistence, in ac- 10 cordance with applicable provisions under title 11 5, United States Code. 12 ‘‘(3) BOARD 13 RESPONSIBILITIES.—The Board shall have the following responsibilities: 14 ‘‘(A) Conducting general oversight over the 15 functioning and operation of the PBO, includ- 16 ing— 17 ‘‘(i) ensuring that the reporting and 18 planning requirements of this section are 19 fulfilled by the PBO; and 20 ‘‘(ii) ensuring that the Chief Oper- 21 ating Officer acquires senior managers 22 with demonstrated management ability and 23 expertise in consumer lending (as described 24 in subsection (b)(1)(C)(iii)). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 COMPENSATION.—Board 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 78 1 ‘‘(B) Approving the appointment or re- 2 appointment of a Chief Operating Officer, ex- 3 cept that the board shall have no authority to 4 approve or disapprove the reappointment of the 5 Chief Operating Officer who holds such position 6 on the date of enactment of the PROSPER 7 Act. 8 ‘‘(C) Making recommendations with re- 9 spect to the suitability of any bonuses proposed 10 to be provided to the Chief Operating Officer or 11 senior managers described under subsections 12 (d) and (e), to ensure that a bonus is not 13 awarded to the Officer or a senior manager in 14 a case in which such Officer or manager has 15 failed to meet goals set for them under the rel- 16 evant performance plan under subsections 17 (d)(4) and (e)(2), respectively. 18 ‘‘(D) Approving any performance plan es- 19 tablished for the PBO. 20 ‘‘(4) BOARD 21 ‘‘(A) MEETINGS.—The Board shall meet 22 at least twice per year and at such other times 23 as the chairperson determines appropriate. 24 ‘‘(B) POWERS 25 08:59 Dec 01, 2017 OF CHAIRPERSON.—Except as otherwise provided by a majority vote of the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OPERATIONS.— Jkt 000000 (680541 26) PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 79 1 Board, the powers of the chairperson shall in- 2 clude— 3 ‘‘(i) establishing committees; 4 ‘‘(ii) setting meeting places and times; 5 ‘‘(iii) establishing meeting agendas; 6 and 7 ‘‘(iv) developing rules for the conduct 8 of business. 9 ‘‘(C) QUORUM.—Four members of the 10 Board shall constitute a quorum. A majority of 11 members present and voting shall be required 12 for the Board to take action. 13 ‘‘(D) ADMINISTRATION.—The Federal Ad- 14 visory Committee Act shall not apply with re- 15 spect to the Board, other than sections 10, 11 16 and 12 of such Act. 17 ‘‘(5) ANNUAL 18 ‘‘(A) IN GENERAL.—Not less frequently 19 than once annually, the Board shall submit to 20 the authorizing committees a report on the re- 21 sults of the work conducted by the PBO. 22 ‘‘(B) 23 08:59 Dec 01, 2017 CONTENTS.—Each report under clause (i) shall include— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REPORT.— Jkt 000000 (680541 26) PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 80 1 ‘‘(i) a description of the oversight 2 work of the Board and the results of such 3 work; 4 ‘‘(ii) a description of statutory re- 5 quirements of this section and section 144 6 where the PBO is not in compliance; 7 ‘‘(iii) recommendations on the ap- 8 pointment or reappointment of a Chief Op- 9 erating Officer; 10 ‘‘(iv) regarding 11 bonus payments for the Chief Operating 12 Officer and senior managers; and 13 ‘‘(v) recommendations for the author- 14 izing Committees and the Appropriations 15 Committees on— 16 ‘‘(I) any statutory changes need- 17 ed that would enhance the ability of 18 the PBO to meet the purposes of this 19 section; and 20 ‘‘(II) any recommendations for 21 the Secretary or the Chief Operating 22 Officer that will improve the oper- 23 ations of the PBO. 24 ‘‘(vi) ISSUANCE 25 LEASE.—Each g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 recommendations 08:59 Dec 01, 2017 Jkt 000000 AND PUBLIC RE- report under clause (i) shall (680541 26) PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 81 1 be posted on the publicly accessible website 2 of the Department of Education. 3 ‘‘(vii) PBO 4 later than 180 days after the submission of 5 each report under clause (i), the Chief Op- 6 erating Officer shall respond to each rec- 7 ommendation individually, which shall in- 8 clude a description of such actions that the 9 Officer is undertaking to address such rec- 10 ommendation. 11 ‘‘(C) STAFF.— 12 ‘‘(i) IN GENERAL.—The Secretary 13 may appoint to the Board not more than 14 7 employees to assist in carrying out the 15 duties of the Board under this section. 16 ‘‘(ii) TECHNICAL EMPLOYEES.—Such 17 appointments may include, for terms not 18 to exceed 3 years and without regard to 19 the provisions of title 5, United States 20 Code, governing appointments in the com- 21 petitive service, not more than 3 technical 22 employees who may be paid without regard 23 to the provisions of chapter 51 and sub- 24 chapter III of chapter 53 of such title re- 25 lating to classification and General Sched- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RECOMMENDATIONS.—Not 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 82 1 ule pay rates, but no individual so ap- 2 pointed shall be paid in excess of the rate 3 authorized for GS–18 of the General 4 Schedule. 5 ‘‘(iii) DETAILEES.—The Secretary 6 may detail, on a reimbursable basis, any of 7 the personnel of the Department for the 8 purposes described in clause (i). Such em- 9 ployees shall serve without additional pay, 10 allowances, or benefits. 11 ‘‘(iv) STATUTORY CONSTRUCTION.— 12 Nothing in this subparagraph shall be con- 13 strued to provide for an increase in the 14 total number of permanent full-time equiv- 15 alent positions in the Department or any 16 other department or agency of the Federal 17 Government. 18 ‘‘(6) BRIEFING ON ACTIVITIES OF THE OVER- 19 SIGHT BOARD.—The 20 provide a briefing to the authorizing committees on 21 the steps the Board has taken to carry out its re- 22 sponsibilities under this subsection.’’. 23 Secretary shall, upon request, SEC. 132. ADMINISTRATIVE DATA TRANSPARENCY. 24 Part D of title I (20 U.S.C. 1018 et seq.) is amended 25 by adding at the end the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 83 1 ‘‘SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY. 2 ‘‘(a) IN GENERAL.—To improve the transparency of 3 the student aid delivery system, the Secretary and the 4 Chief Operating Officer shall collect and publish informa5 tion on the performance of student loan programs under 6 title IV in accordance with this section. 7 ‘‘(b) DISCLOSURES.— 8 ‘‘(1) IN Secretary and the 9 Chief Operating Officer shall publish on a publicly 10 accessible website of the Department of Education 11 the following aggregate statistics with respect to the 12 performance of student loans under title IV: 13 ‘‘(A) The number of borrowers who paid 14 off the total outstanding balance of principal 15 and interest on their loans before the end of the 16 10-year or consolidated loan repayment sched- 17 ule. 18 ‘‘(B) The number of loans under each type 19 of deferment and forbearance. 20 ‘‘(C) The average length of time a loan 21 stays in default. 22 ‘‘(D) The percentage of loans in default 23 among borrowers who completed the program of 24 study for which the loans were made. 25 ‘‘(E) The number of borrowers enrolled in 26 an income-based repayment plan who make g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 84 1 monthly payments of $0 and the average stu- 2 dent loan debt of such borrowers. 3 ‘‘(F) The number of students whose loan 4 balances are growing because such students are 5 not paying the full amount of interest accruing 6 on the loans. 7 ‘‘(G) The number of borrowers entering in- 8 come-based repayment plans to get out of de- 9 fault. 10 ‘‘(H) The number of borrowers in income- 11 based repayment plans who have outstanding 12 student loans from graduate school, and the av- 13 erage balance of such loans. 14 ‘‘(I) With respect to the public service loan 15 forgiveness program under section 455(m)— 16 ‘‘(i) the number of applications sub- 17 mitted and processed; 18 ‘‘(ii) the number of borrowers granted 19 loan forgiveness; 20 ‘‘(iii) the amount of loan debt for- 21 given; and 22 ‘‘(iv) the number of borrowers granted 23 loan forgiveness, and the amount of the 24 loan debt forgiven, disaggregated by each 25 category of employer that employs individ- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 85 1 uals in public service jobs (as defined in 2 section 455(m)(3)(B), including— 3 ‘‘(I) the Federal Government, or 4 a State or local government; 5 ‘‘(II) an organization that is de- 6 scribed in section 501(c)(3) of the In- 7 ternal Revenue Code of 1986 and ex- 8 empt from taxation under section 9 501(a) of such Code; and 10 ‘‘(III) a non-profit organization 11 not described in subclause (II). 12 ‘‘(J) Any other aggregate statistics the 13 Secretary and the Chief Operating Officer de- 14 termine to be necessary to adequately inform 15 the public of the performance of the student 16 loan programs under title IV. 17 ‘‘(2) statistics de- 18 scribed in clauses (i) through (iii) of paragraph 19 (1)(I) shall be disaggregated— 20 ‘‘(A) by the number or amount for most 21 recent quarter; 22 ‘‘(B) by the total number or amount as of 23 the date of publication; 24 ‘‘(C) by repayment plan; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DISAGGREGATION.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 86 1 ‘‘(D) by borrowers seeking loan forgiveness 2 for loans made for an undergraduate course of 3 study; and 4 ‘‘(E) by borrowers seeking loan forgiveness 5 for loans made for a graduate course of study. 6 ‘‘(3) QUARTERLY statistics 7 published under paragraph (1) shall be updated not 8 less frequently than once each fiscal quarter. 9 ‘‘(c) INFORMATION COLLECTION.— 10 ‘‘(1) IN GENERAL.—The Secretary and the 11 Chief Operating Officer shall collect information on 12 the performance of student loans under title IV over 13 time, including— 14 ‘‘(A) measurement of the cash flow gen- 15 erated by such loans as determined by assessing 16 monthly payments on the loans over time; 17 ‘‘(B) the income level and employment sta- 18 tus of borrowers during repayment; 19 ‘‘(C) the loan repayment history of bor- 20 rowers prior to default; 21 ‘‘(D) the progress of borrowers in making 22 monthly payments on loans after defaulting on 23 the loans; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 UPDATES.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 87 1 ‘‘(E) such other information as the Sec- 2 retary and the Chief Operating Officer deter- 3 mine to be appropriate. 4 ‘‘(2) AVAILABILITY.— 5 ‘‘(A) IN information col- 6 lected under paragraph (1) shall be made avail- 7 able biannually to organizations and researchers 8 that— 9 ‘‘(i) submit to the Secretary and the 10 Chief Operating officer a request for such 11 information; and 12 ‘‘(ii) enter into an agreement with the 13 National Center for Education Statistics 14 under which the organization or researcher 15 (as the case may be) agrees to use the in- 16 formation in accordance with the privacy 17 laws described in subparagraph (B). 18 ‘‘(B) PRIVACY PROTECTIONS.—The privacy 19 laws described in this subparagraph are the fol- 20 lowing: 21 ‘‘(i) Section 183 of the Education 22 Sciences Reform Act of 2002 (20 U.S.C. 23 9573). 24 ‘‘(ii) The Privacy Act of 1974 (5 25 U.S.C. 552a). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 88 1 ‘‘(iii) Section 444 of the General Edu- 2 cation Provisions Act (commonly known as 3 the ‘Family Educational Rights and Pri- 4 vacy Act of 1974’) (20 U.S.C. 1232g). 5 ‘‘(iv) Subtitle A of title V of the E– 6 Government Act of 2002 (44 U.S.C. 3501 7 note). 8 ‘‘(C) FORMAT.—The information described 9 in subparagraph (A) shall be made available in 10 the format of a data file that contains an statis- 11 tically accurate, representative sample of all 12 borrowers of loans under title IV. 13 ‘‘(d) DATA SHARING.—The Secretary and the Chief 14 Operating Officer may enter into cooperative data sharing 15 agreements with other Federal or State agencies to ensure 16 the accuracy of information collected and published under 17 this section. 18 ‘‘(e) PRIVACY.—The Secretary and the Chief Oper- 19 ating Officer shall ensure that any information collected, 20 published, or otherwise made available under this section 21 does not reveal personally identifiable information.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 89 1 PART E—LENDER AND INSTITUTION REQUIRE2 3 MENTS RELATING TO EDUCATION LOANS SEC. 141. MODIFICATION OF PREFERRED LENDER AR- 4 5 RANGEMENTS. (a) IN GENERAL.—Part E of title I (20 U.S.C. 1019 6 et seq.) is amended— 7 (1) in section 151 (20 U.S.C. 1019(2))— 8 (A) in paragraph (2), by striking ‘‘section 9 102’’ and inserting ‘‘section 101 or 102’’; 10 (B) in paragraph (3)— 11 (i) by striking ‘‘or’’ at the end of sub- 12 paragraph (B); 13 (ii) by redesignating subparagraph 14 (C) as subparagraph (D); and 15 (iii) by inserting after subparagraph 16 (B), the following: 17 ‘‘(C) any loan made under part E of title 18 IV after the date of enactment of the PROS- 19 PER Act; or’’; 20 (C) in paragraph (6)(A)— 21 (i) by striking ‘‘and’’ at the end of 22 clause (ii); 23 (ii) by redesignating clause (iii) as 24 clause (iv); and 25 (iii) by inserting after clause (ii), the 26 following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 90 1 ‘‘(iii) in the case of a loan issued or 2 provided to a student under part E of title 3 IV on or after the date of enactment of the 4 PROSPER Act;’’; 5 (D) in paragraph (8)(B)(ii)— 6 (i) by striking ‘‘or’’ at the end of 7 clause (i); 8 (ii) by redesignating clause (ii) as 9 clause (iii); and 10 (iii) by inserting after clause (i), the 11 following: 12 ‘‘(ii) arrangements or agreements with 13 respect to loans under part E of title IV; 14 or’’; 15 (2) in section 152 (20 U.S.C. 1019)— 16 (A) in subsection (a)(1)— 17 (i) in subparagraph (B), by amending 18 clause (i) to read as follows: 19 ‘‘(i) make available to the prospective 20 borrower on a website or with informa- 21 tional material, the information the Board 22 of Governors of the Federal Reserve Sys- 23 tem requires the lender to provide to the 24 covered 25 128(e)(11) of the Truth in Lending Act g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 institution under section (680541 26) PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 91 1 (15 U.S.C. 1638(e)(11)) for such loan;’’; 2 and 3 (ii) by adding at the end the fol- 4 lowing: 5 ‘‘(D) SPECIAL 6 any other provision of law, a covered institu- 7 tion, or an institution-affiliated organization of 8 such covered institution, shall not be required 9 to provide any information regarding private 10 education loans to prospective borrowers except 11 for the information described in subparagraph 12 (B).’’; and 13 (B) in subsection (b)(1)(A)(i), by striking 14 ‘‘part B or D’’ and inserting ‘‘part B, D, or 15 E’’; 16 (3) in section 153 (20 U.S.C. 1019b)— 17 (A) in subsection (a)— 18 (i) in paragraph (1)(B)— 19 (I) in clause (i), by adding ‘‘and’’ 20 at the end; 21 (II) in clause (ii), by striking ‘‘; 22 and’’ at the end and inserting a pe- 23 riod; and 24 (III) by striking clause (iii); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RULE.—Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 92 1 (ii) in paragraph (2), by amending 2 subparagraph (C) to read as follows: 3 ‘‘(C) update such model disclosure form 4 not later than 180 after the date of enactment 5 of the PROSPER Act, and periodically there- 6 after, as necessary.’’; and 7 (B) by amending subsection (c) to read as 8 follows: 9 ‘‘(c) DUTIES 10 TUTION-AFFILIATED 11 ‘‘(1) CODE COVERED INSTITUTIONS AND INSTI- ORGANIZATIONS.— OF CONDUCT.—Each covered insti- 12 tution, and each institution-affiliated organization of 13 such covered institution, that has a preferred lender 14 arrangement, shall comply with the code of conduct 15 requirements of subparagraphs (A) through (C) of 16 section 487(a)(22). 17 ‘‘(2) APPLICABLE CODE OF CONDUCT.—For 18 purposes of subparagraph (A), an institution-affili- 19 ated organization of a covered institution shall— 20 ‘‘(A) comply with the code of conduct de- 21 veloped and published by such covered institu- 22 tion under subparagraphs (A) and (B) of sec- 23 tion 487(a)(22); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 93 1 ‘‘(B) if such institution-affiliated organiza- 2 tion has a website, publish such code of conduct 3 prominently on the website; and 4 ‘‘(C) administer and enforce such code of 5 conduct by, at a minimum, requiring that all of 6 such organization’s agents with responsibilities 7 with respect to education loans be annually in- 8 formed of the provisions of such code of con- 9 duct.’’; and 10 (4) in section 154 (20 U.S.C. 1019c)— 11 (A) in the subsection heading, by inserting 12 before the period the following: ‘‘OR 13 ERAL FED- ONE LOAN PROGRAM’’; 14 (B) by striking ‘‘William D. Ford Direct 15 Loan Program’’ each place it appears and in- 16 serting ‘‘William D. Ford Direct Loan Program 17 or the Federal ONE Loan Program’’ 18 (C) by striking ‘‘part D’’ each place it ap- 19 pears and inserting ‘‘part D or E’’; and 20 (D) in subsection (a)— 21 (i) by striking ‘‘the development’’ and 22 inserting ‘‘the first update’’; 23 (ii) by striking ‘‘section 153(a)(2)(B)’’ 24 and inserting ‘‘section 153(a)(2)(C)’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 THE 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 94 1 (iii) by striking ‘‘Federal Direct Staf- 2 ford Loans, Federal Direct Unsubsidized 3 Stafford 4 PLUS’’ and inserting ‘‘undergraduate, 5 graduate, and parent’’. 6 Loans, and Federal Direct (b) LIMITATION.—The Secretary of Education shall 7 not impose, administer, or enforce any requirements on 8 a covered institution or an institution-affiliated organiza9 tion of a covered institution relating to preferred lender 10 lists or arrangements unless explicitly authorized by sec11 tions 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher 12 Education Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 13 1019b(c), or 1094(h), respectively) as amended by this 14 Act. 15 16 PART F—ADDRESSING SEXUAL ASSAULT SEC. 151. ADDRESSING SEXUAL ASSAULT. 17 Title I (20 U.S.C. 1001 et seq.) is amended by adding 18 at the end the following new part: 19 20 ‘‘PART F—ADDRESSING SEXUAL ASSAULT ‘‘SEC. 161. APPLICATION. 21 ‘‘The requirements of this part shall apply to any in- 22 stitution of higher education receiving Federal financial 23 assistance under this Act, including financial assistance 24 provided to students under title IV, other than— 25 ‘‘(1) an institution outside the United States; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 95 1 ‘‘(2) an institution that provides instruction pri- 2 3 marily through online courses. ‘‘SEC. 162. CAMPUS CLIMATE SURVEYS. 4 ‘‘(a) SURVEYS 5 AND 6 CONDUCT ON TO MEASURE CAMPUS ATTITUDES CLIMATE REGARDING SEXUAL ASSAULT AND MIS- CAMPUS.—Each institution of higher edu- 7 cation that is subject to this part shall conduct surveys 8 of its students to measure campus attitudes towards sex9 ual assault and the general climate of the campus regard10 ing the institution’s treatment of sexual assault on cam11 pus, and shall use the results of the survey to improve 12 the institution’s ability to prevent and respond appro13 priately to incidents of sexual assault. 14 ‘‘(b) CONTENTS.—The institution’s survey under this 15 section shall consist of such questions as the institution 16 considers appropriate, which may (at the option of the in17 stitution) include any of the following: 18 19 ‘‘(1) Questions on the incidence and prevalence of sexual assault experienced by students. 20 ‘‘(2) Questions on whether students who experi- 21 ence sexual assault report such incidents to campus 22 officials or law enforcement agencies. 23 24 ‘‘(3) Questions on whether the alleged perpetrators are students of the institution. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 96 1 ‘‘(4) Questions to test the students’ knowledge 2 and understanding of institutional policies regarding 3 sexual assault and available campus support services 4 for victims of sexual assault. 5 ‘‘(5) Questions to test the students’ knowledge, 6 understanding, and retention of campus sexual as- 7 sault prevention and awareness programming. 8 ‘‘(6) Questions related to dating violence, do- 9 mestic violence, and stalking. 10 11 ‘‘(c) OTHER ISSUES RELATING TION OF 12 ADMINISTRA- SURVEYS.— ‘‘(1) MANDATORY CONFIDENTIALITY OF RE- 13 SPONSES.—The 14 sponses to surveys under this section are kept con- 15 fidential and do not require the respondents to pro- 16 vide personally identifiable information. 17 institution shall ensure that all re- ‘‘(2) ENCOURAGING USE OF BEST PRACTICES 18 AND APPROPRIATE LANGUAGE.—The 19 encouraged to administer the surveys under this sec- 20 tion in accordance with best practices derived from 21 peer-reviewed research, and to use language that is 22 sensitive to potential respondents who may have 23 been victims of sexual assault. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TO THE 08:59 Dec 01, 2017 Jkt 000000 institution is (680541 26) PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 97 1 ‘‘(3) ENCOURAGING RESPONSES.—The institu- 2 tion shall make a good faith effort to encourage stu- 3 dents to respond to the surveys. 4 ‘‘(d) ROLE OF SECRETARY.— 5 ‘‘(1) DEVELOPMENT OF SAMPLE SURVEYS.— 6 The Secretary, in consultation with relevant stake- 7 holders, shall develop sample surveys that an institu- 8 tion may elect to use under this section, and shall 9 post such surveys on a publicly accessible website of 10 the Department of Education. The Secretary shall 11 develop sample surveys that are suitable for the var- 12 ious populations who will participate in the surveys. 13 14 ‘‘(2) LIMIT ON OTHER ACTIVITIES.—In carrying out this section, the Secretary— 15 ‘‘(A) may not regulate or otherwise impose 16 conditions on the contents of an institution’s 17 surveys under this section, except as may be 18 necessary to ensure that the institution meets 19 the confidentiality requirements of subsection 20 (c)(1); and 21 ‘‘(B) may not use the results of the sur- 22 veys to make comparisons between institutions 23 of higher education. 24 ‘‘(e) FREQUENCY.—An institution of higher edu- 25 cation that is subject to this part shall conduct a survey g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 98 1 under this section not less frequently than once every 3 2 academic years. 3 ‘‘SEC. 163. SURVIVORS’ COUNSELORS. 4 5 ‘‘(a) REQUIRING INSTITUTIONS SELOR 6 MAKE COUN- AVAILABLE.— ‘‘(1) IN GENERAL.—Each institution of higher 7 education that is subject to this part shall retain the 8 services of qualified sexual assault survivors’ coun- 9 selors to counsel and support students who are vic- 10 tims of sexual assault. 11 ‘‘(2) USE OF CONTRACTORS PERMITTED.—At 12 the option of the institution, the institution may re- 13 tain the services of counselors who are employees of 14 the institution or may enter into agreements with 15 other institutions of higher education, victim advo- 16 cacy organizations, or other appropriate sources to 17 provide counselors for purposes of this section. 18 ‘‘(3) NUMBER.—The institution shall retain 19 such number of counselors under this section as the 20 institution considers appropriate based on a reason- 21 able determination of the anticipated demand for 22 such counselors’ services, so long as the institution 23 retains the services of at least one such counselor at 24 all times. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TO 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 99 1 ‘‘(b) QUALIFICATIONS.—A counselor is qualified for 2 purposes of this section if the counselor has completed 3 education specifically designed to enable the counselor to 4 provide support to victims of sexual assault, and is famil5 iar with relevant laws on sexual assault as well as the in6 stitution’s own policies regarding sexual assault. 7 8 ‘‘(c) INFORMING VICTIMS OF AVAILABLE OPTIONS SERVICES.—In providing services pursuant to this AND 9 section, a counselor shall— 10 ‘‘(1) inform the victim of sexual assault of op- 11 tions available to victims, including the procedures 12 the victim may follow to report the assault to the in- 13 stitution or to a law enforcement agency; and 14 ‘‘(2) inform the victim of interim measures that 15 may be taken pending the resolution of institutional 16 disciplinary proceedings or the conclusion of criminal 17 justice proceedings. 18 ‘‘(d) CONFIDENTIALITY.— 19 ‘‘(1) MAINTAINING 20 FORMATION.—In 21 section, a counselor shall— providing services pursuant to this 22 ‘‘(A) maintain confidentiality with respect 23 to any information provided by a victim of sex- 24 ual assault to the greatest extent permitted 25 under applicable law; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CONFIDENTIALITY OF IN- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 100 1 ‘‘(B) the victim of any cir- 2 cumstances under which the counselor is re- 3 quired to report information to others (includ- 4 ing a law enforcement agency) notwithstanding 5 the general requirement to maintain confiden- 6 tiality under subparagraph (A). 7 ‘‘(2) MAINTAINING PRIVACY OF RECORDS.—A 8 counselor providing services pursuant to this section 9 shall be considered a recognized professional for pur- 10 poses of section 444(a)(4)(B)(iv) of the General 11 Education Provisions Act (commonly known as the 12 ‘Family Educational Rights and Privacy Act of 13 1974’) (20 U.S.C. 1232g(a)(4)(B)(iv)). 14 ‘‘(e) LIMITATIONS.— 15 ‘‘(1) NO REPORTING OF INCIDENTS UNDER 16 CLERY ACT OR OTHER AUTHORITY.—A 17 providing services pursuant to this section is not re- 18 quired to report incidents of sexual assault that are 19 reported to the counselor for inclusion in any report 20 on campus crime statistics, and shall not be consid- 21 ered part of a campus police or security department 22 for purposes of section 485(f). 23 ‘‘(2) NO counselor COVERAGE OF COUNSELORS AS RE- 24 SPONSIBLE EMPLOYEES UNDER TITLE IX.—A 25 selor providing services pursuant to this section on g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 notify 08:59 Dec 01, 2017 Jkt 000000 coun- (680541 26) PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 101 1 behalf of an institution of higher education shall not 2 be considered a responsible employee of the institu- 3 tion for purposes of title IX of the Education 4 Amendments of 1972 (20 U.S.C. 1681 et seq.) or 5 the regulations promulgated pursuant to such title. 6 ‘‘(f) NOTIFICATIONS TO STUDENTS.—Each institu- 7 tion of higher education that is subject to this part shall 8 make a good faith effort to notify its students of the avail9 ability of the services of counselors pursuant to this sec10 tion through the statement of policy described in section 11 485(f)(8)(B)(vi) and any other methods as the institution 12 considers appropriate, including disseminating informa13 tion through the institution’s website, posting notices 14 throughout the campus, and including information as part 15 of programs to educate students on sexual assault preven16 tion and awareness. 17 ‘‘SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL 18 19 ASSAULT. ‘‘(a) REQUIREMENT TO DEVELOP AND DISTRIBUTE 20 FORM.—Each institution of higher education that is sub21 ject to this part shall develop a one-page form containing 22 information to provide guidance and assistance to students 23 who may be victims of sexual assault, and shall make the 24 form widely available to students. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 102 1 ‘‘(b) CONTENTS OF FORM.—The form developed 2 under this section shall contain such information as the 3 institution considers appropriate, and may include the fol4 lowing: 5 ‘‘(1) Information about the services of coun- 6 selors which are available pursuant to section 163, 7 including a statement that the counselor will provide 8 the maximum degree of confidentiality permitted 9 under law, and a brief description of the cir- 10 cumstances under which the counselor may be re- 11 quired to report information notwithstanding the vic- 12 tim’s desire to keep the information confidential. 13 ‘‘(2) Information about other appropriate cam- 14 pus resources and resources in the local community, 15 including contact information. 16 ‘‘(3) Information about where to obtain medical 17 treatment, and information about transportation 18 services to such medical treatment facilities, if avail- 19 able. 20 21 ‘‘(4) Information about the importance of preserving evidence after a sexual assault. 22 23 ‘‘(5) Information about how to file a report with local law enforcement agencies. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 103 1 ‘‘(6) Information about the victim’s right to re- 2 quest accommodations, and examples of accommoda- 3 tions that may be provided. 4 ‘‘(7) Information about the victim’s right to re- 5 quest that the institution begin an investigation of 6 an allegation of sexual assault and initiate an insti- 7 tutional disciplinary proceeding if the alleged perpe- 8 trator of the assault is another student or a member 9 of the faculty or staff of the institution. 10 ‘‘(8) A statement that an institutional discipli- 11 nary proceeding is not a substitute for a criminal 12 justice proceeding. 13 ‘‘(9) Information about how to report a sexual 14 assault to the institution, including the designated 15 official or office responsible for receiving these re- 16 ports. 17 ‘‘(c) DEVELOPMENT OF MODEL FORMS.—The Sec- 18 retary, in consultation with relevant stakeholders, shall de19 velop model forms that an institution may use to meet 20 the requirements of this section, and shall include in such 21 model forms language which may accommodate a variety 22 of State and local laws and institutional policies. Nothing 23 in this subsection may be construed to require an institu24 tion to use any of the model forms developed under this 25 subsection. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 104 1 ‘‘SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL 2 LAW ENFORCEMENT AGENCIES. 3 ‘‘(a) FINDINGS; PURPOSE.— 4 ‘‘(1) FINDINGS.—Because sexual assault is a 5 serious crime, coordination and cooperation between 6 institutions of higher education and law enforcement 7 agencies are critical in ensuring that reports of sex- 8 ual assaults on campus are handled in an appro- 9 priate and effective manner. A memorandum of un- 10 derstanding entered into between an institution and 11 the law enforcement agency with primary jurisdic- 12 tion for responding to reports of sexual assault on 13 the institution’s campus is a useful tool to promote 14 this coordination and cooperation. 15 ‘‘(2) PURPOSE.—It is the purpose of this sec- 16 tion to encourage each institution of higher edu- 17 cation that is subject to this part to enter into a 18 memorandum of understanding with the law enforce- 19 ment agency with primary jurisdiction for respond- 20 ing to reports of sexual assault on the institution’s 21 campus so that reports of sexual assault on the in- 22 stitution’s campus may be handled in an appropriate 23 and effective manner. 24 ‘‘(b) CONTENTS OF MEMORANDUM.—An institution 25 of higher education and a law enforcement agency enter26 ing into a memorandum of understanding described in this g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 105 1 section are encouraged to include in the memorandum pro2 visions addressing the following: 3 ‘‘(1) An outline of the protocols and a delinea- 4 tion of responsibilities for responding to a report of 5 sexual assault occurring on campus. 6 ‘‘(2) A clarification of each party’s responsibil- 7 ities under existing Federal, State, and local law or 8 policies. 9 ‘‘(3) The need for the law enforcement agency 10 to know about institutional policies and resources so 11 that the agency can direct student-victims of sexual 12 assault to such resources. 13 ‘‘(4) The need for the institution to know about 14 resources available within the criminal justice system 15 to assist survivors, including the presence of special 16 prosecutor or police units specifically designated to 17 handle sexual assault cases. 18 ‘‘(5) If the institution has a campus police or 19 security department with law enforcement authority, 20 the need to clarify the relationship and delineate the 21 responsibilities between such department and the 22 law enforcement agency with respect to handling in- 23 cidents of sexual assaults occurring on campus. 24 ‘‘(c) ROLE OF SECRETARY.—The Secretary, in con- 25 sultation with the Attorney General, shall develop best g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 106 1 practices for memoranda of understanding described in 2 this section, and shall disseminate such best practices on 3 a publicly accessible website of the Department of Edu4 cation. 5 ‘‘SEC. 166. DEFINITIONS. 6 ‘‘In this part: 7 ‘‘(1) The term ‘sexual assault’ has the meaning 8 given such term in section 485(f)(6)(A)(v). 9 ‘‘(2) The terms ‘dating violence’, ‘domestic vio- 10 lence’, and ‘stalking’, have the meaning given such 11 terms in section 485(f)(6)(A)(i).’’. 14 TITLE II—EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS 15 SEC. 201. REPEAL. 12 13 16 (a) REPEAL.—Title II (20 U.S.C. 1021 et seq.) is 17 repealed. 18 (b) PART A TRANSITION.—Part A of title II (20 19 U.S.C. 1022 et seq.), as in effect on the day before the 20 date of the enactment of this Act, may be carried out 21 using funds that have been appropriated for such part 22 until June 30, 2018. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 107 1 SEC. 202. GRANTS FOR ACCESS TO HIGH-DEMAND CA- 2 REERS. 3 The Higher Education Act of 1965 (20 U.S.C. 1001 4 et seq.) is amended by inserting after title I the following: 7 ‘‘TITLE II—EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS 8 ‘‘SEC. 201. APPRENTICESHIP GRANT PROGRAM. 5 6 9 ‘‘(a) PURPOSE.—The purpose of this section is to ex- 10 pand student access to, and participation in, new industry11 led earn-and-learn programs leading to high-wage, high12 skill, and high-demand careers. 13 ‘‘(b) AUTHORIZATION OF APPRENTICESHIP GRANT 14 PROGRAM.— 15 ‘‘(1) IN the amounts author- 16 ized under subsection (j), the Secretary shall award 17 grants, on a competitive basis, to eligible partner- 18 ships for the purpose described in subsection (a). 19 20 ‘‘(2) DURATION.—The Secretary shall award grants under this section for a period of— 21 ‘‘(A) not less than 1 year; and 22 ‘‘(B) not more than 4 years. 23 ‘‘(3) LIMITATIONS.— 24 ‘‘(A) AMOUNT.—A grant awarded under 25 this section may not be in an amount greater 26 than $1,500,000. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—From 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00107 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 108 1 ‘‘(B) NUMBER OF AWARDS.—An eligible 2 partnership or member of such partnership may 3 not be awarded more than one grant under this 4 section. 5 ‘‘(C) ADMINISTRATION COSTS.—An eligible 6 partnership awarded a grant under this section 7 may not use more than 5 percent of the grant 8 funds to pay administrative costs associated 9 with activities funded by the grant. 10 ‘‘(c) MATCHING FUNDS.—To receive a grant under 11 this section, an eligible partnership shall, through cash or 12 in-kind contributions, provide matching funds from non13 Federal sources in an amount equal to or greater than 14 50 percent of the amount of such grant. 15 ‘‘(d) APPLICATIONS.— 16 ‘‘(1) IN receive a grant under 17 this section, an eligible partnership shall submit to 18 the Secretary at such a time as the Secretary may 19 require, an application that— 20 ‘‘(A) identifies and designates the business 21 or institution of higher education responsible 22 for the administration and supervision of the 23 earn-and-learn program for which such grant 24 funds would be used; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—To 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 109 1 ‘‘(B) identifies the businesses and institu- 2 tions of higher education that comprise the eli- 3 gible partnership; 4 ‘‘(C) identifies the source and amount of 5 the matching funds required under subsection 6 (c); 7 ‘‘(D) identifies the number of students who 8 will participate and complete the relevant earn- 9 and-learn program within 1 year of the expira- 10 tion of the grant; 11 ‘‘(E) identifies the amount of time, not to 12 exceed 2 years, required for students to com- 13 plete the program; 14 ‘‘(F) identifies the relevant recognized 15 postsecondary credential to be awarded to stu- 16 dents who complete the program; 17 ‘‘(G) identifies the anticipated earnings of 18 students— 19 ‘‘(i) 1 year after program completion; 20 and 21 ‘‘(ii) 3 years after program comple- 22 tion; 23 ‘‘(H) describes the specific project for 24 which the application is submitted, including a 25 summary of the relevant classroom and paid g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00109 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 110 1 structured on-the-job training students will re- 2 ceive; 3 ‘‘(I) describes how the eligible partnership 4 will finance the program after the end of the 5 grant period; 6 ‘‘(J) describes how the eligible partnership 7 will support the collection of information and 8 data for purposes of the program evaluation re- 9 quired under subsection (h); and 10 ‘‘(K) describes the alignment of the pro- 11 gram with State identified in-demand industry 12 sectors. 13 ‘‘(2) APPLICATION 14 ‘‘(A) REVIEW PANEL.—Applications sub- 15 mitted under paragraph (1) shall be read by a 16 panel of readers composed of individuals se- 17 lected by the Secretary. The Secretary shall as- 18 sure that an individual assigned under this 19 paragraph does not have a conflict of interest 20 with respect to the applications reviewed by 21 such individual. 22 ‘‘(B) COMPOSITION OF REVIEW PANEL.— 23 The panel of reviewers selected by the Secretary 24 under subparagraph (A) shall be comprised as 25 follows: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REVIEW PROCESS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 111 1 ‘‘(i) A majority of the panel shall be 2 individuals who are representative of busi- 3 nesses, which may include owners, execu- 4 tives with optimum hiring authority, or in- 5 dividuals representing business organiza- 6 tions or business trade associations. 7 ‘‘(ii) The remainder of the panel shall 8 be equally divided between individuals who 9 are— 10 ‘‘(I) representatives of institu- 11 tions of higher education that offer 12 programs of two years or less; and 13 ‘‘(II) representatives of State 14 workforce development boards estab- 15 lished under section 101 of the Work- 16 force Innovation and Opportunity Act 17 (29 U.S.C. 3111). 18 ‘‘(C) REVIEW APPLICATIONS.—The 19 Secretary shall instruct the review panel se- 20 lected by the Secretary under paragraph (2)(A) 21 to evaluate applications using only the criteria 22 specified in paragraph (1) and make rec- 23 ommendations with respect to— 24 ‘‘(i) the quality of the applications; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 112 1 ‘‘(ii) whether a grant should be 2 awarded for a project under this title; and 3 ‘‘(iii) the amount and duration of 4 such grant. 5 ‘‘(D) NOTIFICATION.—Not later than June 6 30 of each year, the Secretary shall notify each 7 eligible partnership submitting an application 8 under this section of— 9 ‘‘(i) the scores given the applicant by 10 the panel pursuant to this section; 11 ‘‘(ii) the recommendations of the 12 panel with respect to such application; and 13 ‘‘(iii) the reasons for the decision of 14 the Secretary in awarding or refusing to 15 award a grant under this section; and 16 ‘‘(iv) modifications, if any, in the rec- 17 ommendations of the panel made to the 18 Secretary. 19 ‘‘(e) AWARD BASIS.—The Secretary shall award 20 grants under this section on the following basis— 21 22 ‘‘(1) the number of participants to be served by the grant; 23 24 ‘‘(2) the anticipated income of program participants in relation to the regional median income; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 113 1 2 ‘‘(3) the alignment of the program with Stateidentified in-demand industry sectors; and 3 ‘‘(4) the recommendations of the readers under 4 subsection (d)(2)(C). 5 ‘‘(f) USE OF FUNDS.—Grant funds provided under 6 this section may be used for— 7 ‘‘(1) the purchase of appropriate equipment, 8 technology, or instructional material, aligned with 9 business and industry needs, including machinery, 10 testing equipment, hardware and software; 11 12 ‘‘(2) student books, supplies, and equipment required for enrollment; 13 ‘‘(3) the reimbursement of up to 50 percent of 14 the wages of a student participating in an earn-and- 15 learn program receiving a grant under this section; 16 ‘‘(4) the development of industry-specific pro- 17 graming; 18 ‘‘(5) supporting the transition of industry-based 19 professionals from an industry setting to an aca- 20 demic setting; 21 ‘‘(6) industry-recognized certification exams or 22 other assessments leading to a recognized postsec- 23 ondary credential associated with the earn-and-learn 24 program; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 114 1 ‘‘(7) any fees associated with the certifications 2 or assessments described in paragraph (6). 3 ‘‘(g) TECHNICAL ASSISTANCE.—The Secretary may 4 provide technical assistance to eligible partnerships award5 ed under this section throughout the grant period for pur6 poses of grant management. 7 ‘‘(h) EVALUATION.— 8 ‘‘(1) IN the amounts made 9 available under subsection (j), the Secretary, acting 10 through the Director of the Institute for Education 11 Sciences, shall provide for the independent evalua- 12 tion of the grant program established under this sec- 13 tion that includes the following: 14 ‘‘(A) An assessment of the effectiveness of 15 the grant program in expanding earn-and-learn 16 program opportunities offered by employers in 17 conjunction with institutions of higher edu- 18 cation. 19 ‘‘(B) The number of students who partici- 20 pated in programs assisted under this section. 21 ‘‘(C) The percentage of students partici- 22 pating in programs assisted under this section 23 who successfully completed the program in the 24 time described in subsection (d)(1)(E). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—From 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 115 1 ‘‘(D) The median earnings of program par- 2 ticipants— 3 ‘‘(i) 1 year after exiting the program; 4 and 5 ‘‘(ii) 3 years after exiting the pro- 6 gram. 7 ‘‘(E) The percentage of students partici- 8 pating in programs assisted under this section 9 who successfully receive a recognized postsec- 10 ondary credential. 11 ‘‘(F) The number of students served by 12 programs receiving funding under this sec- 13 tion— 14 ‘‘(i) 2 years after the end of the grant 15 period; 16 ‘‘(ii) 4 years after the end of the 17 grant period. 18 ‘‘(2) PROHIBITION.—Notwithstanding any other 19 provision of law, the evaluation required by this sub- 20 section shall not be subject to any review outside the 21 Institute for Education Sciences before such reports 22 are submitted to Congress and the Secretary. 23 ‘‘(3) PUBLICATION.—The evaluation required 24 by this subsection shall be made publicly available on 25 the website of the Department. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 116 1 ‘‘(i) DEFINITIONS.—In this section: 2 ‘‘(1) EARN-AND-LEARN term 3 ‘earn-and-learn program’ means an education pro- 4 gram, including an apprenticeship program, that 5 provides students with structured, sustained, and 6 paid on-the-job training and accompanying, for cred- 7 it, classroom instruction that— 8 ‘‘(A) is for a period of between 3 months 9 and 2 years; and 10 ‘‘(B) leads to, on completion of the pro- 11 gram, a recognized postsecondary credential. 12 ‘‘(2) ELIGIBLE PARTNERSHIP.—The term ‘eligi- 13 ble partnership’ shall mean a consortium that in- 14 cludes— 15 ‘‘(A) 1 or more businesses; and 16 ‘‘(B) 1 or more institutions of higher edu- 17 cation. 18 ‘‘(3) IN-DEMAND INDUSTRY SECTOR OR OCCU- 19 PATION.—The 20 occupation’ has the meaning given the term in sec- 21 tion 3 of the Workforce Innovation and Opportunity 22 Act (29 U.S.C. 3102). 23 24 08:59 Dec 01, 2017 term ‘in-demand industry sector or ‘‘(4) ON-THE-JOB TRAINING.—The term ‘on- the-job training’ has the meaning given the term in g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PROGRAM.—The Jkt 000000 (680541 26) PO 00000 Frm 00116 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 117 1 section 3 of the Workforce Innovation and Oppor- 2 tunity Act (29 U.S.C. 3102). 3 ‘‘(5) RECOGNIZED POSTSECONDARY CREDEN- 4 TIAL.—The 5 tial’ has the meaning given the term in section 3 of 6 the Workforce Innovation and Opportunity Act (29 7 U.S.C. 3102). 8 ‘‘(j) AUTHORIZATION term ‘recognized postsecondary creden- OF APPROPRIATIONS.—There 9 are authorized to be appropriated to carry out this section 10 $183,204,000 for fiscal year 2019 and each of the 5 suc11 ceeding fiscal years.’’. TITLE III—INSTITUTIONAL AID 12 13 SEC. 301. STRENGTHENING INSTITUTIONS. 14 Part A of title III (20 U.S.C. 1057 et seq.) is amend- 15 ed— 16 (1) in the part heading for part A, by inserting 17 ‘‘MINORITY-SERVING’’ after ‘‘STRENGTHENING’’; 18 (2) in section 311— 19 (A) by striking subsection (b) and redesig- 20 nating subsections (c) and (d) as subsections 21 (b) and (c), respectively; 22 (B) in subsection (b) (as so redesig- 23 nated)— 24 (i) by striking paragraph (6) and in- 25 serting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00117 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 118 1 ‘‘(6) Tutoring, counseling, advising, and stu- 2 dent service programs designed to improve academic 3 success, including innovative and customized instruc- 4 tional courses (which may include remedial edu- 5 cation and English language instruction) designed to 6 help retain students and move the students rapidly 7 into core courses and through program completion.’’; 8 (ii) in paragraph (8), by striking ‘‘ac- 9 quisition of equipment for use in strength- 10 ening funds management’’ and inserting 11 ‘‘acquisition of technology, services, and 12 equipment for use in strengthening funds 13 and administrative management’’; 14 (iii) in paragraph (12), by striking 15 ‘‘Creating’’ and all that follows through 16 ‘‘technologies,’’ and inserting ‘‘Innovative 17 learning models and creating or improving 18 facilities for Internet or other innovative 19 technologies,’’; 20 (iv) by redesignating paragraph (13) 21 as paragraph (18); and 22 (v) by inserting after paragraph (12) 23 the following: 24 ‘‘(13) Establishing community outreach pro- 25 grams that will encourage elementary school and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 119 1 secondary school students to develop the academic 2 skills and the interest to pursue postsecondary edu- 3 cation. 4 ‘‘(14) The development, coordination, imple- 5 mentation, or improvement of career and technical 6 education programs as defined in section 135 of the 7 Carl D. Perkins Career and Technical Education 8 Act of 2006 (20 U.S.C. 2355). 9 ‘‘(15) Alignment and integration of career and 10 technical education programs with programs of 11 study leading to a bachelor’s degree, graduate de- 12 gree, or professional degree. 13 ‘‘(16) Developing or expanding access to dual 14 or concurrent enrollment programs and early college 15 high school programs. 16 ‘‘(17) Pay for success initiatives that improve 17 time to completion and increase graduation rates.’’; 18 and 19 (C) in subsection (c) (as so redesignated), 20 by adding at the end the following: 21 ‘‘(4) SCHOLARSHIP.—An institution that uses 22 grant funds provided under this part to establish or 23 increase an endowment fund may use the income 24 from such endowment fund to provide scholarships 25 to students for the purposes of attending such insti- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 120 1 tution, 2 331(c)(3)(B)(i).’’; 3 to the limitation in section (3) in section 312— 4 (A) in subsection (a), by striking ‘‘trans- 5 fers which the institution’’ and inserting ‘‘trans- 6 fers that the institution’’; 7 (B) in subsection (b)(1)— 8 (i) by redesignating subparagraphs 9 (E) and (F) as subparagraphs (F) and 10 (E), respectively; 11 (ii) in subparagraph (E) (as so redes- 12 ignated), by inserting ‘‘(as defined in sec- 13 tion 103(20)(A))’’ after ‘‘State’’; and 14 (iii) in subparagraph (F) (as so redes- 15 ignated), by striking ‘‘and’’ at the end; and 16 (C) in subsection (b)— 17 (i) by striking the period at the end of 18 paragraph (2) and inserting ‘‘; and’’; and 19 (ii) by inserting after paragraph (2) 20 the following: 21 ‘‘(3) except as provided in section 392(b), an 22 institution that has a completion rate of at least 25 23 percent that is calculated by counting a student as 24 completed if that student— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 subject 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 121 1 ‘‘(A) graduates within 150 percent of the 2 normal time for completion; or 3 ‘‘(B) enrolled into another program at an 4 institution for which the previous program pro- 5 vided substantial preparation within 150 per- 6 cent of the normal time for completion.’’; 7 (4) in section 313— 8 (A) in subsection (a)— 9 (i) by striking ‘‘for 5 years’’ and in- 10 serting ‘‘for a period of 5 years’’; and 11 (ii) by adding at the end the fol- 12 lowing: ‘‘Any funds awarded under this 13 section that are not expended or used for 14 the purposes for which the funds were paid 15 within 10 years following the date on 16 which the grant was awarded, shall be re- 17 paid to the Treasury.’’; and 18 (B) by striking subsection (d); 19 (5) in section 316— 20 (A) in subsection (c)— 21 (i) in paragraph (2)— 22 (I) by striking subparagraph (A) 23 and inserting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 122 1 ‘‘(A) the activities described in paragraphs 2 (1) through (12) and (14) through (17) of sec- 3 tion 311(b);’’; 4 (II) by striking subparagraphs 5 (E) through (J); 6 (III) by redesignating subpara- 7 graphs (K) and (L) as subparagraphs 8 (E) and (F), respectively; 9 (IV) by striking subparagraph 10 (M); and 11 (V) by redesignating subpara- 12 graph (N) as subparagraph (G); and 13 (VI) in subparagraph (G) (as so 14 redesignated), by striking ‘‘(M)’’ and 15 inserting ‘‘(F)’’; and 16 (ii) by striking paragraph (3) and in- 17 serting the following: 18 ‘‘(3) ENDOWMENT Tribal College or 19 University seeking to establish or increase an endow- 20 ment fund shall abide by the requirements in section 21 311(c).’’; and 22 (B) in subsection (d)— 23 (i) by striking paragraph (2) and in- 24 serting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FUND.—A 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 123 1 ‘‘(2) APPLICATION.—A Tribal College or Uni- 2 versity desiring to receive assistance under this sec- 3 tion shall submit an application to the Secretary 4 pursuant to section 391.’’; and 5 (ii) in paragraph (4)— 6 (I) in subparagraph (A), by strik- 7 ing ‘‘part A of’’; and 8 (II) in subparagraph (B), by 9 striking 10 inserting (6) in section 317— 12 (A) in subsection (c)— 13 (i) by striking paragraph (2) and in- 14 serting the following: 15 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— Such programs may include— 17 ‘‘(A) the activities described in paragraphs 18 (1) through (17) of section 311(b); and 19 ‘‘(B) other activities proposed in the appli- 20 cation submitted pursuant to subsection (d) 21 that— 22 ‘‘(i) contribute to carrying out the 23 purpose of this section; and 24 ‘‘(ii) are approved by the Secretary as 25 part of the review and approval of an ap- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 and ‘‘312(b)(3)’’; 11 16 ‘‘313(d)’’ 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 124 1 plication submitted under subsection (d).’’; 2 and 3 (ii) by adding at the end the fol- 4 lowing: 5 ‘‘(3) ENDOWMENT Alaska Native- 6 serving institution and Native Hawaiian-serving in- 7 stitution seeking to establish or increase an endow- 8 ment fund shall abide by the requirements in section 9 311(c).’’; and 10 (B) in subsection (d)— 11 (i) by striking paragraph (1) and re- 12 designating paragraphs (2) and (3) as 13 paragraphs (1) and (2), respectively; 14 (ii) in paragraph (1) (as so redesig- 15 nated)— 16 (I) in the first sentence, by in- 17 serting ‘‘pursuant to section 391’’ 18 after ‘‘to the Secretary’’; and 19 (II) by striking the remaining 20 sentences; and 21 (iii) in paragraph (2) (as so redesig- 22 nated)— 23 (I) in subparagraph (A), by strik- 24 ing ‘‘this part or part B.’’ and insert- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FUND.—An 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 125 1 ing ‘‘this part, part B, or title V.’’; 2 and 3 (II) by striking subparagraph (B) 4 and redesignating subparagraph (C) 5 as subparagraph (B); 6 (7) in section 318— 7 (A) in subsection (b)— 8 (i) in paragraph (1)— 9 (I) in subparagraph (E), by 10 striking ‘‘and’’ at the end; 11 (II) in subparagraph (F)(ii), by 12 striking ‘‘part A of’’; 13 (III) in subparagraph (F)(iii), by 14 striking the period at the end and in- 15 serting ‘‘; and’’; and 16 (IV) by adding at the end the fol- 17 lowing; 18 ‘‘(G) is an eligible institution under section 19 312(b).’’; and 20 (ii) by striking paragraph (7); 21 (B) in subsection (d)— 22 (i) in paragraph (2)— 23 (I) in subparagraph (A), by strik- 24 ing ‘‘through (12)’’ and inserting 25 ‘‘through (17) of section 311(b)’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 126 1 (II) by striking subparagraph 2 (D); and 3 (III) by redesignating subpara- 4 graph (E) as subparagraph (D); and 5 (ii) by striking paragraph (3) and in- 6 serting the following: 7 ‘‘(3) ENDOWMENT Predominantly 8 Black Institution seeking to establish or increase an 9 endowment fund shall abide by the requirements in 10 section 311(c).’’; 11 (C) in subsection (f), by striking all after 12 ‘‘Secretary’’ the first place such term appears 13 and inserting ‘‘pursuant to section 391.’’; 14 (D) by striking subsections (g) and (h); 15 (E) by redesignating subsection (i) as sub- 16 section (g); and 17 (F) in subsection (g) (as so redesignated), 18 by striking ‘‘part A of’’; 19 (8) in section 319— 20 (A) in subsection (c)— 21 (i) by striking paragraph (2) and in- 22 serting the following: 23 24 ‘‘(2) EXAMPLES 08:59 Dec 01, 2017 OF AUTHORIZED ACTIVITIES.— Such programs may include— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FUND.—A Jkt 000000 (680541 26) PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 127 1 ‘‘(A) the activities described in paragraphs 2 (1) through (17) of section 311(b); and 3 ‘‘(B) other activities proposed in the appli- 4 cation submitted pursuant to subsection (d) 5 that— 6 ‘‘(i) contribute to carrying out the 7 purpose of this section; and 8 ‘‘(ii) are approved by the Secretary as 9 part of the review and approval of an ap- 10 plication submitted under subsection (d).’’; 11 and 12 (ii) by adding at the end the fol- 13 lowing: 14 ‘‘(3) ENDOWMENT Native American- 15 serving, nontribal institution seeking to establish or 16 increase an endowment fund shall abide by the re- 17 quirements in section 311(c).’’; and 18 (B) in subsection (d)— 19 (i) by striking paragraph (1) and in- 20 serting the following: 21 ‘‘(1) APPLICATION.—A Native American-serv- 22 ing, nontribal institution desiring to receive assist- 23 ance under this section shall submit an application 24 to the Secretary pursuant to section 391.’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FUND.—A 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 128 1 (ii) by striking paragraph (2) and re- 2 designating paragraph (3) as paragraph 3 (2); and 4 (iii) in paragraph (2) (as so redesig- 5 nated)— 6 (I) in subparagraph (A), by strik- 7 ing ‘‘part A of’’; 8 (II) by striking subparagraph 9 (B); and 10 (III) by redesignating subpara- 11 graphs (C) and (D) as subparagraphs 12 (B) and (C), respectively; and 13 (9) in section 320— 14 (A) in subsection (c)— 15 (i) by striking paragraph (2) and in- 16 serting the following: 17 18 ‘‘(2) EXAMPLES Such programs may include— 19 ‘‘(A) the activities described in paragraphs 20 (1) through (17) of section 311(b); 21 ‘‘(B) academic instruction in disciplines in 22 which Asian Americans and Native American 23 Pacific Islanders are underrepresented; 24 ‘‘(C) conducting research and data collec- 25 tion for Asian American and Native American g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF AUTHORIZED ACTIVITIES.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 129 1 Pacific Islander populations and subpopula- 2 tions; 3 ‘‘(D) establishing partnerships with com- 4 munity-based 5 Americans and Native American Pacific Island- 6 ers; and serving Asian 7 ‘‘(E) other activities proposed in the appli- 8 cation submitted pursuant to subsection (d) 9 that— 10 ‘‘(i) contribute to carrying out the 11 purpose of this section; and 12 ‘‘(ii) are approved by the Secretary as 13 part of the review and approval of an ap- 14 plication submitted under subsection (d).’’; 15 and 16 (ii) by adding at the end the fol- 17 lowing: 18 ‘‘(3) ENDOWMENT FUND.—An Asian American 19 and Native American Pacific Islander-serving insti- 20 tution seeking to establish or increase an endowment 21 fund shall abide by the requirements in section 22 311(c).’’; and 23 (B) in subsection (d)— 24 (i) by striking paragraph (1) and in- 25 serting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 organizations 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 130 1 ‘‘(1) APPLICATION.—Each Asian American and 2 Native American Pacific Islander-serving institution 3 desiring to receive assistance under this section shall 4 submit an application to the Secretary pursuant to 5 section 391.’’; 6 (ii) by striking paragraph (2) and re- 7 designating paragraph (3) as paragraph 8 (2); and 9 (iii) in paragraph (2) (as so redesig- 10 nated), by striking subparagraph (B) and 11 redesignating subparagraph (C) as sub- 12 paragraph (B). 13 SEC. 302. STRENGTHENING HISTORICALLY BLACK COL- 14 LEGES AND UNIVERSITIES. 15 Part B of title III (20 U.S.C. 1060 et seq.) is amend- 16 ed— 17 (1) in section 323— 18 (A) by striking subsection (a) and insert- 19 20 ing the following : ‘‘(a) AUTHORIZED ACTIVITIES.—From amounts 21 available under section 399(a)(2) for any fiscal year, the 22 Secretary shall make grants (under section 324) to insti23 tutions which have applications approved by the Secretary 24 (under section 325) for any of the following uses: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 131 1 2 ‘‘(1) The activities described in paragraphs (1) through (17) of section 311(b). 3 4 ‘‘(2) Academic instruction in disciplines in which Black Americans are underrepresented. 5 6 ‘‘(3) Initiatives to improve the educational outcomes of African American males. 7 ‘‘(4) Establishing or enhancing a program of 8 teacher education designed to qualify students to 9 teach in a public elementary or secondary school in 10 the State that shall include, as part of such pro- 11 gram, preparation for teacher certification. 12 ‘‘(5) Acquisition of real property in connection 13 with the construction, renovation, or addition to or 14 improvement of campus facilities. 15 ‘‘(6) Services necessary for the implementation 16 of projects or activities that are described in the 17 grant application and that are approved, in advance, 18 by the Secretary, except that not more than two per- 19 cent of the grant amount may be used for this pur- 20 pose. 21 22 ‘‘(7) Other activities proposed in the application submitted pursuant to section 325 that— 23 ‘‘(A) contribute to carrying out the pur- 24 poses of this part; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 132 1 ‘‘(B) are approved by the Secretary as part 2 of the review and acceptance of such applica- 3 tion.’’; and 4 (B) by striking subsection (b) and insert- 5 6 ing the following: ‘‘(b) ENDOWMENT FUND.—An institution seeking to 7 establish or increase an endowment shall abide by the re8 quirements in section 311(c).’’; 9 10 (2) in section 325(a), by striking ‘‘(C), (D), and (E)’’ and inserting ‘‘(C) through (F)’’; 11 (3) in section 326— 12 (A) by striking subsection (b) and insert- 13 14 ing the following: ‘‘(b) DURATION.—The Secretary may award a grant 15 to an eligible institution under this part for a period of 16 5 years. Any funds awarded under this section that are 17 not expended or used for the purposes for which the funds 18 were paid within 10 years following the date on which the 19 grant was awarded, shall be repaid to the Treasury.’’; 20 (B) by striking subsection (c) and insert- 21 22 ing the following: ‘‘(c) AUTHORIZED ACTIVITIES.—A grant under this 23 section may be used for— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 133 1 ‘‘(1) the activities described in paragraphs (1) 2 through (12), (14) through (15), and (17) of section 3 311(b); 4 ‘‘(2) scholarships, fellowships, and other finan- 5 cial assistance for needy graduate and professional 6 students to permit the enrollment of the students in 7 and completion of the doctoral degree in medicine, 8 dentistry, pharmacy, veterinary medicine, law, and 9 the doctorate degree in the physical or natural 10 sciences, engineering, mathematics, or other sci- 11 entific disciplines in which African Americans are 12 underrepresented; 13 ‘‘(3) acquisition of real property that is adja- 14 cent to the campus in connection with the construc- 15 tion, renovation, or addition to or improvement of 16 campus facilities; 17 ‘‘(4) services necessary for the implementation 18 of projects or activities that are described in the 19 grant application and that are approved, in advance, 20 by the Secretary, except that not more than two per- 21 cent of the grant amount may be used for this pur- 22 pose; and 23 24 ‘‘(5) other activities proposed in the application submitted under subsection (d) that— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 134 1 ‘‘(A) contribute to carrying out the pur- 2 poses of this part; and 3 ‘‘(B) are approved by the Secretary as part 4 of the review and acceptance of such applica- 5 tion.’’; 6 (C) in subsection (e)(1)— 7 (i) in subparagraph (W), by striking 8 ‘‘and’’ at the end; 9 (ii) in subparagraph (X), by striking 10 the period at the end and inserting ‘‘; 11 and’’; 12 (iii) by adding at the end the fol- 13 lowing: 14 ‘‘(Y) University of the Virgin Islands 15 School of Medicine.’’; 16 (iv) in each of paragraphs (2) and (3) 17 of subsection (f), by striking ‘‘(X)’’ and in- 18 serting ‘‘(Y)’’; and 19 (v) in subsection (g), by striking 20 ‘‘2008’’ each place such term appears and 21 inserting ‘‘2018’’; and 22 (4) in section 327— 23 (A) by striking the designation and head- 24 ing for subsection (a); and 25 (B) by striking subsection (b). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 135 1 SEC. 303. HISTORICALLY BLACK COLLEGE AND UNIVER- 2 SITY CAPITAL FINANCING. 3 Part D of title III (20 U.S.C. 1066 et seq.) is amend- 4 ed— 5 (1) in section 343— 6 (A) by striking ‘‘escrow account’’ each 7 place it appears and inserting ‘‘bond insurance 8 fund’’; and 9 (B) in subsection (b)— 10 (i) in paragraph (1), by striking ‘‘an’’ 11 and inserting ‘‘a’’; and 12 (ii) in paragraph (8), in the matter 13 preceding subparagraph (A), by striking 14 ‘‘an’’ and inserting ‘‘a’’; 15 16 (2) in section 345, by striking paragraph (9) and inserting the following: 17 ‘‘(9) may, directly or by grant or contract, pro- 18 vide financial counseling and technical assistance to 19 eligible institutions to prepare the institutions to 20 qualify, apply for, and maintain a capital improve- 21 ment loan, including a loan under this part; and’’; 22 and 23 24 (3) in section 347(c), by striking paragraph (2) and inserting the following: 25 ‘‘(2) REPORT.—On an annual basis, the Advi- 26 sory Board shall prepare and submit to the author- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00135 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 136 1 izing committees a report on the status of the his- 2 torically Black colleges and universities described in 3 paragraph (1)(A) and an overview of all loans in the 4 capital financing program, including the most recent 5 loans awarded in the fiscal year in which the report 6 is submitted. The report shall include administrative 7 and legislative recommendations, as needed, for ad- 8 dressing the issues related to construction financing 9 facing historically Black colleges and universities.’’. 10 SEC. 304. MINORITY SCIENCE AND ENGINEERING IMPROVE- 11 MENT PROGRAM. 12 Part E of title III (20 U.S.C. 1067 et seq.) is amend- 13 ed— 14 (1) in section 353(a)— 15 (A) in paragraph (1), by striking ‘‘365(6)’’ 16 and inserting ‘‘359(6)’’; 17 (B) in paragraph (2), by striking ‘‘365(7)’’ 18 and inserting ‘‘359(7)’’; 19 (C) in paragraph (3), by striking ‘‘365(8)’’ 20 and inserting ‘‘359(8)’’; and 21 (D) in paragraph (5), by striking ‘‘365(9)’’ 22 and inserting ‘‘359(9)’’; 23 (2) by striking subpart 2; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00136 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 137 1 (3) by redesignating subpart 3 as subpart 2 2 and redesignating sections 361 through 365 as sec- 3 tions 355 through 359, respectively; 4 (4) in section 355 (as so redesignated), by 5 striking paragraph (5); 6 (5) in section 356(a) (as so redesignated), by 7 striking ‘‘determined under section 361)’’ and in- 8 serting ‘‘determined under section 355)’’; and 9 (6) in section 359(2) (as so redesignated)— 10 (A) 11 ‘‘Black’’; and 12 by inserting ‘‘American’’ after (B) by striking ‘‘Hispanic (including’’ and 13 inserting ‘‘Hispanic American (including’’. 14 SEC. 305. STRENGTHENING HISTORICALLY BLACK COL- 15 LEGES AND UNIVERSITIES AND OTHER MI- 16 NORITY-SERVING INSTITUTIONS. 17 Section 371 (20 U.S.C. 1067q) is amended— 18 (1) in subsection (b)(2)(D)(iii), by striking 19 ‘‘section 311(c)’’ and inserting ‘‘section 311(b)’’; 20 and 21 (2) in subsection (c)(9)(F)(ii), by striking ‘‘part 22 23 A of’’. SEC. 306. GENERAL PROVISIONS. 24 Part G of title III (20 U.S.C. 1068 et seq.) is amend- 25 ed— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 138 1 (1) in section 391(b)— 2 (A) in paragraph (1), by striking ‘‘institu- 3 tional management’’ and all that follows 4 through the semicolon at the end and inserting 5 ‘‘institutional management, and use the grant 6 to provide for, and lead to, institutional self- 7 sustainability and growth (including measurable 8 objectives for the institution and the Secretary 9 to use in monitoring the effectiveness of activi- 10 ties under this title);’’; 11 (B) in paragraph (7)— 12 (i) by striking subparagraph (C) and 13 redesignating subparagraphs (D) and (E) 14 as subparagraphs (C) and (D), respec- 15 tively; and 16 (ii) in subparagraph (D) (as so redes- 17 ignated), strike ‘‘and’’ at the end; 18 (C) by striking paragraph (8) and insert- 19 ing the following: 20 ‘‘(8) set forth a 5-year plan for improving the 21 assistance provided by the institution; and’’; and 22 (D) by adding at the end the following: 23 ‘‘(9) submit such enrollment data as may be 24 necessary to demonstrate that the institution is a 25 minority-serving institution.’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00138 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 139 1 (2) in section 392— 2 (A) in subsection (b)— 3 (i) in the subsection heading, after 4 ‘‘EXPENDITURES’’ insert ‘‘; COMPLETION 5 RATES’’; 6 (ii) in paragraph (1), insert ‘‘or 7 312(b)(3)’’ after ‘‘312(b)(1)(B)’’; and 8 (iii) in paragraph (2)— 9 (I) in the matter preceding sub- 10 paragraph (A)— 11 (aa) by inserting ‘‘or 12 312(b)(3)’’ after ‘‘312(b)(1)(B)’’; 13 and 14 (bb) by inserting ‘‘Amer- 15 ican’’ after ‘‘Hispanic’’; and 16 (II) in subparagraph (A), by in- 17 serting ‘‘or section 312(b)(3)’’ after 18 ‘‘312(b)(1)’’; and 19 (B) by striking subsection (c) and insert- 20 ing the following: 21 22 ‘‘(c) WAIVER AUTHORITY WITH RESPECT TUTIONS LOCATED IN AN AREA AFFECTED TO BY A INSTIMAJOR 23 DISASTER.— 24 25 ‘‘(1) 08:59 Dec 01, 2017 AUTHORITY.—Notwithstanding any other provision of law, unless enacted with spe- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 WAIVER Jkt 000000 (680541 26) PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 140 1 cific reference to this section, in the case of a major 2 disaster, the Secretary may waive for affected insti- 3 tutions— 4 ‘‘(A) the eligibility data requirements set 5 forth in section 391(d) and section 521(e); 6 ‘‘(B) the allotment requirements under sec- 7 tion 324; and 8 ‘‘(C) the use of the funding formula devel- 9 oped pursuant to section 326(f)(3); 10 ‘‘(2) DEFINITIONS.—In this subsection: 11 ‘‘(A) AFFECTED term 12 ‘affected institution’ means an institution of 13 higher education that— 14 ‘‘(i) is— 15 ‘‘(I) a part A institution (which 16 term shall have the meaning given the 17 term ‘eligible institution’ under sec- 18 tion 312(b) or section 502(a)(6)); or 19 ‘‘(II) a part B institution, as 20 such term is defined in section 21 322(2), or as identified in section 22 326(e); 23 ‘‘(ii) is located in an area affected by 24 a major disaster; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 INSTITUTION.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 141 1 ‘‘(iii) is able to demonstrate that, as a 2 result of the impact of a major disaster, 3 the institution— 4 ‘‘(I) incurred physical damage; 5 ‘‘(II) pursued collateral 6 source compensation from insurance, 7 the Federal Emergency Management 8 Agency, and the Small Business Ad- 9 ministration, as appropriate; and 10 ‘‘(III) was not able to fully re- 11 open in existing facilities or to fully 12 reopen to the pre-disaster enrollment 13 levels. 14 ‘‘(B) MAJOR DISASTER.—The term ‘major 15 disaster’ has the meaning given such term in 16 section 102(2) of the Robert T. Stafford Dis- 17 aster Relief and Emergency Assistance Act (42 18 U.S.C. 5122(2)).’’; and 19 (3) in section 399, by striking subsection (a) 20 and inserting the following: 21 ‘‘(a) AUTHORIZATIONS.— 22 ‘‘(1) PART A.—(A) There are authorized to be 23 appropriated to carry out section 316, $27,599,000 24 for each of fiscal years 2019 through 2024. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 has 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 142 1 ‘‘(B) There are authorized to be appropriated 2 to carry out section 317, $13,802,000 for each of 3 fiscal years 2019 through 2024. 4 ‘‘(C) There are authorized to be appropriated to 5 carry out section 318, $9,942,000 for each of fiscal 6 years 2019 through 2024. 7 ‘‘(D) There are authorized to be appropriated 8 to carry out section 319, $3,348,000 for each of fis- 9 cal years 2019 through 2024. 10 ‘‘(E) There are authorized to be appropriated 11 to carry out section 320, $3,348,000 for each of fis- 12 cal years 2019 through 2024. 13 ‘‘(2) PART There are authorized to be 14 appropriated to carry out part B (other than section 15 326), $244,694,000 for each of fiscal years 2019 16 through 2024. 17 ‘‘(B) There are authorized to be appropriated 18 to carry out section 326, $63,281,000 for each of 19 fiscal years 2019 through 2024. 20 ‘‘(3) PART D.—There are authorized to be ap- 21 propriated to carry out part D, $20,484,000 for 22 each of fiscal years 2019 through 2024. Of the 23 amount authorized, 1.63 percent shall be reserved 24 for administrative expenses. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 B.—(A) 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00142 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 143 1 E.—There ‘‘(4) PART are authorized to be ap- 2 propriated to carry out subpart 1 of part E, 3 $9,648,000 for each of fiscal years 2019 through 4 2024.’’. 5 TITLE IV—STUDENT ASSISTANCE 6 PART A—GRANTS TO STUDENTS IN ATTENDANCE 7 8 AT INSTITUTIONS OF HIGHER EDUCATION SEC. 401. FEDERAL PELL GRANTS. 9 (a) REAUTHORIZATION.—Section 401(a) (20 U.S.C. 10 1070a(a)) is amended— 11 12 (1) by striking ‘‘fiscal year 2017’’ and inserting ‘‘fiscal year 2024’’; and 13 (2) by inserting ‘‘an eligible program at’’ after 14 ‘‘attendance at’’. 15 (b) FEDERAL PELL GRANT BONUS.— 16 17 (1) AMENDMENTS.—Section 401(b) (20 U.S.C. 1070a(b)) is amended— 18 (A) in paragraph (7)(A)(iii)— 19 (i) by inserting ‘‘and paragraph (9)’’ 20 after ‘‘this paragraph’’; and 21 (ii) by inserting before the semicolon 22 at the end the following: ‘‘and to provide 23 the additional amount required by para- 24 graph (9)’’; and 25 (B) by adding at the end the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 144 1 ‘‘(9) FEDERAL 2 ‘‘(A) IN GENERAL.—Notwithstanding any 3 other provision of this subsection and from the 4 amounts made available pursuant to paragraph 5 (7)(A)(iii) for the purposes of this paragraph, 6 an eligible student who is receiving a Federal 7 Pell Grant for an award year shall receive an 8 amount in addition to such Federal Pell Grant 9 for each payment period of such award year for 10 which the student— 11 ‘‘(i) is receiving such Federal Pell 12 Grant as long as the amount of such Fed- 13 eral Pell Grant does not exceed the max- 14 imum amount of a Federal Pell Grant 15 award determined under paragraph (2)(A) 16 for such award year; and 17 ‘‘(ii) is carrying a work load that— 18 ‘‘(I) is greater than the normal 19 full-time work load for the course of 20 study the student is pursuing, as de- 21 termined by the institution of higher 22 education; and 23 ‘‘(II) will lead to the completion 24 of not less than 30 credit hours (or 25 the equivalent coursework) upon the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PELL GRANT BONUS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00144 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 145 1 completion of the final payment pe- 2 riod for which the student is receiving 3 the Federal Pell Grant described in 4 clause (i). 5 ‘‘(B) AMOUNT OF BONUS.—The amount 6 provided to an eligible student under subpara- 7 graph (A) for an award year may not exceed 8 $300, which shall be equally divided among 9 each payment period of such award year de- 10 scribed in clauses (i) and (ii) of subparagraph 11 (A).’’. 12 (2) EFFECTIVE DATE.—The amendments made 13 by paragraph (1) shall take effect with respect to 14 award year 2018–2019 and each succeeding award 15 year. 16 (c) PERIOD OF ELIGIBILITY FOR GRANTS.—Section 17 401(c) (20 U.S.C. 1070a(c)) is amended by adding at the 18 end the following: 19 ‘‘(6)(A) The Secretary shall issue to each stu- 20 dent receiving a Federal Pell Grant, an annual sta- 21 tus report which shall— 22 ‘‘(i) inform the student of the remaining 23 period during which the student may receive 24 Federal Pell Grants in accordance with para- 25 graph (5), and provide access to a calculator to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 146 1 assist the student in making such determina- 2 tion; 3 ‘‘(ii) include an estimate of the Federal 4 Pell Grant amounts which may be awarded for 5 such remaining period based on the student’s 6 award amount determined under subsection 7 (b)(2)(A) for the most recent award year; 8 ‘‘(iii) explain how the estimate was cal- 9 culated and any assumptions underlying the es- 10 timate; 11 ‘‘(iv) explain that the estimate may be af- 12 fected if there is a change— 13 ‘‘(I) in the student’s financial cir- 14 cumstances; or 15 ‘‘(II) the availability of Federal fund- 16 ing; and 17 ‘‘(v) describe how the remaining period 18 during which the student may receive Federal 19 Pell Grants will be affected by whether the stu- 20 dent is enrolled as a full-time student. 21 ‘‘(B) Nothing in this paragraph shall be con- 22 strued to prohibit an institution from offering addi- 23 tional counseling to a student with respect to Fed- 24 eral Pell Grants, but such counseling shall not delay g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00146 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 147 1 or impede disbursement of a Federal Pell Grant 2 award to the student.’’. 3 (d) DISTRIBUTION GRANTS OF TO STUDENTS.—Sec- 4 tion 401(e) (20 U.S.C. 1070a(e)) is amended by striking 5 the first sentence and inserting ‘‘Payments under this sec6 tion shall be made in the same manner as disbursements 7 under section 465(a).’’. 8 9 (e) INSTITUTIONAL INELIGIBILITY BASED FAULT ON DE- RATES.—Section 401(j) of such Act (20 U.S.C. 10 1070a(j)) is amended by adding at the end the following: 11 ‘‘(3) SUNSET.—The provisions of this sub- 12 section shall not apply after the transition period de- 13 scribed in section 481B(e)(3).’’. 14 (f) PREVENTION OF FRAUD.—Section 401 (20 15 U.S.C. 1070a) is amended by adding at the end the fol16 lowing: 17 ‘‘(k) PREVENTION OF FRAUD.— 18 ‘‘(1) IN Federal Pell Grant 19 shall be awarded under this subpart to any indi- 20 vidual who, with respect to not less than any 3 pay- 21 ment periods, for each such payment period— 22 ‘‘(A) received at least a portion of a Fed- 23 eral Pell Grant award; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—No 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 148 1 ‘‘(B) did not complete any credit hours (or 2 credit hour equivalencies) for which the indi- 3 vidual was enrolled. 4 ‘‘(2) WAIVER.—The financial aid administrator 5 at an institution may waive the requirement of para- 6 graph (1), if the financial aid administrator— 7 ‘‘(i) determines that the student was un- 8 able to complete the credit hours described in 9 paragraph (1)(B) due to circumstances beyond 10 the student’s control; and 11 ‘‘(ii) makes and documents such a deter- 12 mination on an individual basis. 13 ‘‘(3) CIRCUMSTANCES DESCRIBED.—For pur- 14 poses of paragraph (2), circumstances beyond the 15 student’s control— 16 ‘‘(A) may include the student withdrawing 17 from classes due to illness; and 18 ‘‘(B) shall not include withdrawing to 19 20 avoid a particular grade.’’. (g) REPORT ON COSTS OF FEDERAL PELL GRANT 21 PROGRAM.—Section 401 (20 U.S.C. 1070a) is further 22 amended, as amended by subsections (a) through (f), by 23 adding at the end the following: 24 ‘‘(l) REPORT ON COSTS OF FEDERAL PELL GRANT 25 PROGRAM.—Not later than October 31 of each year, the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 149 1 Secretary shall prepare and submit a report to the author2 izing committees that includes the following information 3 with respect to spending for the Federal Pell Grant pro4 gram for the preceding fiscal year: 5 6 ‘‘(1) The total obligations and expenditures for the program for such fiscal year. 7 ‘‘(2) A comparison of the total obligations and 8 expenditures for the program for such fiscal year— 9 ‘‘(A) to the most recently available Con- 10 gressional Budget Office baseline for the pro- 11 gram; and 12 ‘‘(B) in the case in which such fiscal year 13 is fiscal year 2019, 2020, 2021, 2022, 2023, or 14 2024, to the Congressional Budget Office cost 15 estimate for the program included in the report 16 of the Committee on Education and the Work- 17 force of the House of Representatives accom- 18 panying the PROSPER Act, as approved by the 19 Committee. 20 ‘‘(3) The total obligations and expenditures for 21 the maximum Federal Pell Grant for which a stu- 22 dent is eligible, as specified in the last enacted ap- 23 propriation Act applicable to such fiscal year. 24 ‘‘(4) A comparison of the total obligations and 25 expenditures for the maximum Federal Pell Grant g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00149 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 150 1 for which a student is eligible, as specified in the 2 last enacted appropriation Act applicable to such fis- 3 cal year— 4 ‘‘(A) to the most recently available Con- 5 gressional Budget Office baseline for such max- 6 imum Federal Pell Grant; and 7 ‘‘(B) in the case in which such fiscal year 8 is fiscal year 2019, 2020, 2021, 2022, 2023, or 9 2024, to the Congressional Budget Office cost 10 estimate for such maximum Federal Pell Grant 11 included in the report of the Committee on 12 Education and the Workforce of the House of 13 Representatives accompanying the PROSPER 14 Act, as approved by the Committee. 15 ‘‘(5) The total mandatory obligations and ex- 16 penditures for the amount of the increase in such 17 maximum Federal Pell Grant required by subsection 18 (b)(7)(B) for such fiscal year. 19 ‘‘(6) A comparison of the total mandatory obli- 20 gations and expenditures for the amount of the in- 21 crease in such maximum Federal Pell Grant re- 22 quired by subsection (b)(7)(B)— 23 ‘‘(A) to the most recently available Con- 24 gressional Budget Office baseline for the in- 25 crease; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00150 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 151 1 ‘‘(B) in the case in which such fiscal year 2 is fiscal year 2019, 2020, 2021, 2022, 2023, or 3 2024, to the Congressional Budget Office cost 4 estimate for the increase included in the report 5 of the Committee on Education and the Work- 6 force of the House of Representatives accom- 7 panying the PROSPER Act, as approved by the 8 Committee. 9 ‘‘(7) The total mandatory obligations and ex- 10 penditures for the Federal Pell Grant Bonus re- 11 quired by subsection (b)(9) for such fiscal year. 12 ‘‘(8) A comparison of the total mandatory obli- 13 gations and expenditures for the Federal Pell Grant 14 Bonus required by subsection (b)(9) for such fiscal 15 year— 16 ‘‘(A) to the most recently available Con- 17 gressional Budget Office baseline for such 18 bonus; and 19 ‘‘(B) in the case in which such fiscal year 20 is fiscal year 2019, 2020, 2021, 2022, 2023, or 21 2024, to the Congressional Budget Office cost 22 estimate for such bonus included in the report 23 of the Committee on Education and the Work- 24 force of the House of Representatives accom- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 152 1 panying the PROSPER Act, as approved by the 2 Committee.’’.’’. 3 SEC. 402. FEDERAL TRIO PROGRAMS. 4 5 (a) PROGRAM AUTHORITY; AUTHORIZATION PROPRIATIONS.—Section OF AP- 402A (20 U.S.C. 1070a–11) is 6 amended— 7 (1) in subsection (c)— 8 (A) by amending subparagraph (A) of 9 paragraph (2) to read as follows: 10 ‘‘(A) ACCOUNTABILITY 11 In making grants under this chapter, the Sec- 12 retary shall comply with the following require- 13 ments: 14 ‘‘(i) The Secretary shall consider each 15 applicant’s prior success in achieving high 16 quality service delivery, as determined 17 under subsection (f), under the particular 18 program for which funds are sought. The 19 level of consideration given the factor of 20 prior success in achieving high quality 21 service delivery shall not vary from the 22 level of consideration given such factor 23 during fiscal years 1994 through 1997, ex- 24 cept that grants made under section 402H 25 shall not be given such consideration. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FOR OUTCOMES.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 153 1 ‘‘(ii) The Secretary shall not give 2 points for prior success in achieving high 3 quality service delivery to any current 4 grantee that, during the then most recent 5 period for which funds were provided, did 6 not meet or exceed two or more objectives 7 established in the eligible entity’s applica- 8 tion based on the performance measures 9 described in subsection (f). 10 ‘‘(iii) From the amounts awarded 11 under subsection (g) for a program under 12 this chapter (other than a program under 13 section 402G and 402H) for any fiscal 14 year in which the Secretary conducts a 15 competition for the award of grants or con- 16 tracts under such programs, the Secretary 17 shall reserve not less than 10 percent of 18 such available amount to award grants or 19 contracts to applicants who have not pre- 20 viously received a grant or contract under 21 this chapter. If the Secretary determines 22 that there are an insufficient number of 23 qualified applicants to use the full amount 24 reserved under the preceding sentence, the 25 Secretary shall use the remainder of such g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 154 1 amount to award grants or contracts to 2 applicants who have previously received a 3 grant or contract under this chapter.’’; 4 (B) in paragraph (3)— 5 (i) in subparagraph (A)— 6 (I) by striking ‘‘as provided in 7 subparagraph (B)’’ and inserting ‘‘as 8 provided in subparagraph (C)’’; 9 (II) by striking ‘‘experience’’ and 10 inserting ‘‘success in achieving high 11 quality service delivery’’; 12 (ii) by redesignating subparagraph 13 (B) as subparagraph (C); and 14 (iii) by inserting after subparagraph 15 (A) the following new subparagraph: 16 ‘‘(B) To ensure that congressional priorities in 17 conducting competitions for grants and contracts 18 under this chapter are implemented, the Secretary 19 shall 20 prioritization of applications for such grants or con- 21 tracts (including additional competitive, absolute, or 22 other criteria) beyond the criteria described in this 23 chapter.’’; not 24 08:59 Dec 01, 2017 additional criteria for the (C) in paragraph (6)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 impose Jkt 000000 (680541 26) PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 155 1 (i) by striking the period at the end of 2 the second sentence and inserting ‘‘, as 3 long as the program is serving a different 4 population or a different campus.’’; 5 (ii) by striking ‘‘the programs author- 6 ized by’’ and inserting ‘‘sections 402B, 7 402C, 402D, and 402F of’’; 8 (iii) by striking ‘‘The Secretary shall 9 encourage’’ and inserting the following: 10 ‘‘(A) The Secretary shall encourage’’; 11 (iv) by striking ‘‘The Secretary shall 12 permit’’ and inserting the following: 13 ‘‘(B) The Secretary shall permit’’; 14 (D) in paragraph (7), by striking ‘‘8 15 months’’ each place it appears and inserting 16 ‘‘90 days’’; 17 (E) in paragraph (8)— 18 (i) in subparagraph (A)— 19 (I) in the matter preceding clause 20 (i), by striking ‘‘Not later than 180 21 days after the date of enactment of 22 the Higher Education Opportunity 23 Act,’’ and inserting ‘‘Not later than 24 90 days before the commencement of g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00155 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 156 1 each competition for a grant under 2 this chapter,’’; 3 (II) in clause (iii), by striking 4 ‘‘prior experience points for high qual- 5 ity service delivery are awarded’’ and 6 inserting ‘‘application scores are ad- 7 justed for prior success in achieving 8 high quality service delivery’’; and 9 (III) in clause (v), by striking 10 ‘‘prior experience points for’’ and in- 11 serting ‘‘the adjustment in scores for 12 prior success in achieving’’; 13 (ii) by striking subparagraph (B) and 14 redesignating subparagraph (C) as sub- 15 paragraph (B); and 16 (iii) in subparagraph (B), as so redes- 17 ignated— 18 (I) in clause (iii)— 19 (aa) in the matter preceding 20 subclause (I), by striking ‘‘prior 21 experience points for’’ and insert- 22 ing ‘‘points for prior success in 23 achieving’’; and 24 (bb) in subclause (II), by 25 striking ‘‘prior experience points’’ g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 157 1 and inserting ‘‘points for prior 2 success in achieving high quality 3 service delivery’’; and 4 (II) in clause (vi), by inserting 5 before the period at the end the fol- 6 lowing: ‘‘from funds reserved under 7 subsection (g)’’; and 8 (F) by adding at the end the following: 9 ‘‘(9) MATCHING 10 ‘‘(A) IN GENERAL.—The Secretary shall 11 not approve an application submitted under sec- 12 tion 402B, 402C, 402D, 402E, or 402F unless 13 such application— 14 ‘‘(i) provides that the eligible entity 15 will provide, from State, local, institu- 16 tional, or private funds, not less than 20 17 percent of the cost of the program, which 18 matching funds may be provided in cash or 19 in kind and may be accrued over the full 20 duration of the grant award period, except 21 that the eligible entity shall make substan- 22 tial progress towards meeting the matching 23 requirement in each year of the grant 24 award period; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REQUIREMENT.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 158 1 ‘‘(ii) specifies the methods by which 2 matching funds will be paid; and 3 ‘‘(iii) includes provisions designed to 4 ensure that funds provided under this 5 chapter shall supplement and not supplant 6 funds expended for existing programs. 7 ‘‘(B) RULE.—Notwithstanding 8 the matching requirement described in subpara- 9 graph (A), the Secretary may by regulation 10 modify the percentage requirement described in 11 subparagraph (A). The Secretary may approve 12 an eligible entity’s request for a reduced match 13 percentage— 14 ‘‘(i) at the time of application if the 15 eligible entity demonstrates significant eco- 16 nomic hardship that precludes the eligible 17 entity from meeting the matching require- 18 ment; or 19 ‘‘(ii) in response to a petition by an 20 eligible entity subsequent to a grant award 21 under section 402B, 402C, 402D, 402E, 22 or 402F if the eligible entity demonstrates 23 that the matching funds described in its 24 application are no longer available and the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 SPECIAL 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00158 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 159 1 eligible entity has exhausted all revenues 2 for replacing such matching funds.’’. 3 (2) in subsection (d)(3), by adding at the end 4 the following new sentence: ‘‘In addition, the Sec- 5 retary shall host at least one virtual, interactive edu- 6 cation session using telecommunications technology 7 to ensure that any interested applicants have access 8 to technical assistance.’’; 9 (3) in subsection (e)— 10 (A) in paragraph (1)— 11 (i) in subparagraph (C), by striking 12 ‘‘or’’ at the end; 13 (ii) in subparagraph (D), by striking 14 the period at the end and inserting ‘‘; or’’; 15 and 16 (iii) by adding at the end the fol- 17 lowing new subparagraph: 18 ‘‘(E) documentation that the student has been 19 determined to be eligible for a Federal Pell Grant 20 under section 401.’’; and 21 (B) in paragraph (2)— 22 (i) in subparagraph (C), by striking 23 ‘‘or’’ at the end; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 160 1 (ii) in subparagraph (D), by striking 2 the period at the end and inserting ‘‘; or’’; 3 and 4 (iii) by adding at the end the fol- 5 lowing new subparagraph: 6 ‘‘(E) documentation that the student has been 7 determined to be eligible for a Federal Pell Grant 8 under section 401.’’; 9 (4) in subsection (f)— 10 (A) in the heading of paragraph (1), by 11 striking ‘‘PRIOR 12 ‘‘ACCOUNTABILITY and inserting FOR OUTCOMES’’; 13 (B) in paragraph (1) by striking ‘‘experi- 14 ence of’’ and inserting ‘‘success in achieving’’; 15 (C) in paragraph (3)— 16 (i) in subparagraph (A)— 17 (I) in clause (iv) by striking ‘‘rig- 18 orous secondary school program of 19 study that will make such students el- 20 igible for programs such as the Aca- 21 demic Competitiveness Grants Pro- 22 gram’’ 23 school program of study that will pre- 24 pare such students to enter postsec- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EXPERIENCE’’ 08:59 Dec 01, 2017 Jkt 000000 and inserting ‘‘secondary (680541 26) PO 00000 Frm 00160 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 161 1 ondary education without the need for 2 remedial education’’; 3 (II) by redesignating clauses (v) 4 and (vi) as clauses (vi) and (vii), re- 5 spectively; and 6 (III) by inserting after clause (iv) 7 the following new clause: 8 ‘‘(v) the completion of financial aid 9 applications, including the Free Applica- 10 tion for Federal Student Aid described in 11 section 483(a) and college admission appli- 12 cations;’’; 13 (ii) in subparagraph (B)— 14 (I) by redesignating clauses (i), 15 (ii), (iii), (iv), (v), (vi), (vii) as sub- 16 clauses (I), (II), (III), (IV), (VII), 17 (IX), and (X), respectively; 18 (II) by inserting after subclause 19 (IV), as so redesignated, the fol- 20 lowing: 21 ‘‘(V) the reentry into secondary 22 school of such students; 23 ‘‘(VI) the enrollment of such stu- 24 dents into a general educational devel- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00161 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 162 1 opment 2 ‘GED’) program;’’. known as a 3 (III) in subclause (VII), as so re- 4 designated, by striking ‘‘rigorous sec- 5 ondary school program of study that 6 will make such students eligible for 7 programs such as the Academic Com- 8 petitiveness Grants Program’’ and in- 9 serting ‘‘secondary school program of 10 study that will prepare such students 11 to enter postsecondary education with- 12 out the need for remedial education’’; 13 (IV) by inserting after subclause 14 (VII), as so redesignated, the fol- 15 lowing new subclause: 16 ‘‘(VIII) the completion of financial aid 17 applications, including the Free Applica- 18 tion for Federal Student Aid described in 19 section 483(a) and college admission appli- 20 cations;’’; 21 (V) by striking ‘‘(B) For pro- 22 grams 23 402C,’’ and inserting ‘‘(B)(i) For pro- 24 grams authorized under section 402C, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 (commonly 08:59 Dec 01, 2017 Jkt 000000 authorized under section (680541 26) PO 00000 Frm 00162 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 163 1 except in the case of projects that spe- 2 cifically target veterans,’’; and 3 (VI) by adding at the end the fol- 4 lowing new clauses: 5 ‘‘(ii) For programs authorized under sec- 6 tion 402C that specifically target veterans, the 7 extent to which the eligible entity met or ex- 8 ceeded the entity’s objectives for such program 9 with respect to— 10 ‘‘(I) the delivery of service to a total 11 number of students served by the program, 12 as agreed upon by the entity and the Sec- 13 retary for the period; 14 ‘‘(II) such students’ academic per- 15 formance, as measured by standardized 16 tests; 17 ‘‘(III) the retention and completion of 18 participants in the project; 19 ‘‘(IV) the provision of assistance to 20 students served by the program in com- 21 pleting financial aid applications, including 22 the Free Application for Federal Student 23 Aid described in section 483(a) and college 24 admission applications; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00163 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 164 1 ‘‘(V) the enrollment of such students 2 in an institution of higher education; and 3 ‘‘(VI) to the extent practicable, the 4 postsecondary education completion rate of 5 such students.’’; 6 (iii) in subparagraph (C)(ii)— 7 (I) in subclause (I), by striking 8 ‘‘in which such students were en- 9 rolled’’ and inserting ‘‘within six years 10 of the initial enrollment of such stu- 11 dents in the program’’; 12 (II) in subclause (II); 13 (aa) in the matter preceding 14 item (aa), by striking ‘‘offer a 15 baccalaureate degree’’ and insert- 16 ing 17 laureate degrees’’; and offer bacca- 18 (bb) in item (aa), by striking 19 ‘‘students; and’’ and inserting 20 ‘‘students within 4 years of the 21 initial enrollment of such stu- 22 dents in the program; or’’; 23 (iv) in subparagraph (D)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ‘‘primarily 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00164 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 165 1 (I) in clause (iii), by striking ‘‘; 2 and’’ and inserting ‘‘within two years 3 of receiving a baccalaureate degree;’’; 4 (II) in clause (iv), by striking 5 ‘‘study and’’ and all that follows 6 through the period and inserting 7 ‘‘study; and’’; and 8 (III) by adding at the end the 9 following new clause: 10 ‘‘(v) the attainment of doctoral de- 11 grees by former program participants with- 12 in 10 years of receiving a baccalaureate de- 13 gree.’’; and 14 (v) in subparagraph (E)(ii), by insert- 15 ing ‘‘, or re-enrollment,’’ after ‘‘enroll- 16 ment’’; 17 (5) in subsection (g)— 18 (A) in the first sentence, by striking 19 ‘‘$900,000,000 for fiscal year 2009 and such 20 sums as may be necessary for’’ and inserting 21 ‘‘$900,000,000 for fiscal year 2019 and’’; 22 (B) in the second sentence— 23 (i) by striking ‘‘no more than 1⁄2 of 1’’ 24 and inserting ‘‘not more than 1’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00165 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 166 1 (ii) by striking ‘‘and to provide tech- 2 nical’’ and inserting ‘‘to provide technical’’; 3 and 4 (iii) by inserting before the period at 5 the end the following: ‘‘, and to support 6 applications funded under the process out- 7 lined in subsection (c)(8)(B)’’; and 8 (C) by striking the last sentence; and 9 (6) in subsection (h)— 10 (A) by striking ‘‘(5) 11 BILITY.—No 12 lowing: 13 VETERAN ELIGI- veteran’’ and inserting the fol- ‘‘(i) VETERAN ELIGIBILITY.—(1) No Veteran’’; 14 (B) in paragraph (6), by striking ‘‘of para- 15 graph (5)’’ and inserting ‘‘of paragraph (1)’’; 16 (C) by striking ‘‘(6) 17 WAIVER.—The Sec- retary’’ and inserting the following: 18 ‘‘(2) The Secretary’’. 19 (b) TALENT SEARCH.—Section 402B (20 U.S.C. 20 1070a–12) is amended— 21 (1) in subsection (a)— 22 (A) in paragraph (2), by striking ‘‘and’’ at 23 the end; 24 (B) by redesignating paragraph (3) as 25 paragraph (4); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00166 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 167 1 (C) by inserting after paragraph (2) the 2 following new paragraph: 3 ‘‘(3) to advise such youths on the postsecondary 4 institution selection process, including consideration 5 of the financial aid awards offered and the potential 6 loan burden required; and’’; 7 8 (2) in subsection (b), by striking paragraph (6) and inserting the following: 9 10 ‘‘(6) connections to education or counseling services designed to— 11 ‘‘(A) improve the financial literacy and 12 economic literacy of students or the students’ 13 parents in order to aid them in making in- 14 formed decisions about how to best finance 15 their postsecondary education; and 16 ‘‘(B) assist students and families regarding 17 career choice.’’; 18 (3) in subsection (c)(2), by striking ‘‘career’’ 19 and inserting ‘‘academic’’; and 20 (4) in subsection (d)— 21 (A) by redesignating paragraphs (2), (3), 22 and (4) as paragraphs (3), (4), and (5), respec- 23 tively; 24 (B) by inserting after paragraph (1) the 25 following new paragraph: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00167 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 168 1 ‘‘(2) require an assurance that the remaining 2 youths participating in the project proposed to be 3 carried out in any application be low-income individ- 4 uals, first generation college students, or students 5 who have a high risk for academic failure;’’; 6 (C) in paragraph (4), as so redesignated— 7 (i) by inserting ‘‘, section 402C,’’ 8 after ‘‘under this section’’; and 9 (ii) by striking ‘‘and’’ at the end; 10 (D) in paragraph (5), as so redesignated, 11 by striking the period at the end and inserting 12 ‘‘; and’’; and 13 (E) by adding at the end the following: 14 ‘‘(6) require the grantee to maintain, to the ex- 15 tent practicable, a record of any services participants 16 receive during the project year from another pro- 17 gram under this chapter or other federally funded 18 programs serving similar populations to minimize 19 the duplication of services.’’. 20 (c) UPWARD BOUND.—Section 402C (20 U.S.C. 21 1070a–13) is amended— 22 (1) in subsection (b)— 23 (A) in paragraph (4), by adding ‘‘and’’ at 24 the end; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00168 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 169 1 (B) by striking paragraphs (5) and (6) and 2 inserting the following: 3 ‘‘(5) education or counseling services designed 4 to— 5 ‘‘(A) improve the financial literacy and 6 economic literacy of students or the students’ 7 parents in order to aid them in making in- 8 formed decisions about how to best finance 9 their postsecondary education; and 10 ‘‘(B) assist students and their families re- 11 garding career choice.’’; 12 (2) in subsection (d)— 13 (A) in paragraph (1), by striking ‘‘youth’’ 14 and inserting ‘‘participants’’; 15 (B) in paragraph (2), by striking ‘‘youth 16 participating in the project’’ and inserting 17 ‘‘project participants’’; and 18 (C) in paragraph (5), by striking ‘‘youth 19 participating in the project’’ and inserting 20 ‘‘project participants’’; 21 (3) in subsection (e)— 22 (A) in paragraph (4), by striking ‘‘and’’ at 23 the end; 24 (B) by redesignating paragraph (5) as 25 paragraph (6); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00169 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 170 1 (C) by inserting after paragraph (4) the 2 following: 3 ‘‘(5) require an assurance that individuals par- 4 ticipating in the project proposed in any application 5 do not have access to services from another project 6 funded under this section, section 402B, or section 7 402F;’’; 8 (D) in paragraph (6), as so redesignated, 9 by striking the period at the end and inserting 10 ‘‘; and’’; and 11 (E) by adding at the end the following: 12 ‘‘(6) for purposes of minimizing the duplication 13 of services, require that the grantee maintain, to the 14 extent practicable, a record of any services received 15 by participants during the program year from an- 16 other program funded under this chapter, or any 17 other Federally funded program that serves popu- 18 lations similar to the populations served by pro- 19 grams under this chapter.’’. 20 (4) by striking subsection (g) and redesignating 21 subsection (h) as subsection (g). 22 (d) STUDENT SUPPORT SERVICES.—Section 402D 23 (20 U.S.C. 1070a–14) is amended— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 171 1 (1) in subsection (a)(3), by inserting ‘‘low-in- 2 come and first generation college students, includ- 3 ing’’ after ‘‘success of’’; and 4 (2) in subsection (b)(4)— 5 (A) by striking ‘‘, including financial’’ and 6 inserting ‘‘, including— 7 ‘‘(A) financial’’; and 8 (B) by adding at the end the following: 9 ‘‘(B) basic personal income, household 10 money management, and financial planning 11 skills; and 12 ‘‘(C) 13 economic decisionmaking skills;’’; and 14 (C) in subsection (e)— 15 (i) in paragraph (5), by striking 16 ‘‘and’’ at the end; 17 (ii) by redesignating paragraph (6) as 18 paragraph (7); 19 (iii) by inserting after paragraph (5) 20 the following: 21 ‘‘(6) require the grantee to maintain, to the ex- 22 tent practicable, a record of any services participants 23 receive during the project year from another pro- 24 gram under this chapter or other federally funded g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 basic 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 172 1 programs serving similar populations to minimize 2 the duplication of services; and’’. 3 (e) POSTBACCALAUREATE ACHIEVEMENT PROGRAM 4 AUTHORITY.—Section 402E (20 U.S.C. 1070a–15) is 5 amended— 6 (1) in subsection (b)(2), by striking ‘‘summer 7 internships’’ and inserting ‘‘internships and faculty- 8 led research experiences’’; and 9 (2) in subsection (d)— 10 (A) in paragraph (3), by striking ‘‘and’’ at 11 the end; 12 (B) in paragraph (4)— 13 (i) by striking ‘‘summer’’; 14 (ii) by striking the period at the end 15 and inserting ‘‘; and’’; and 16 (C) by adding at the end the following: 17 ‘‘(5) the grantee to maintain, to the extent 18 practicable, a record of any services participants re- 19 ceive during the project year from another program 20 under this chapter or other federally funded pro- 21 gram serving similar populations to minimize the du- 22 plication of services.’’; and 23 24 (3) in subsection (g), by striking ‘‘2009 through 2014’’ and inserting ‘‘2019 through 2024’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 173 1 (f) EDUCATIONAL OPPORTUNITY CENTERS.—Section 2 402F (20 U.S.C. 1070a–16) is amended— 3 (1) in subsection (a)— 4 (A) in paragraph (1), by inserting ‘‘or re- 5 enter’’ after ‘‘pursue’’; and 6 (B) in paragraph (3), by striking ‘‘of stu- 7 dents’’ and inserting ‘‘of such persons’’; 8 (2) in subsection (b)(5), by striking ‘‘stu- 9 dents;’’and inserting the following: ‘‘students, includ- 10 ing— 11 ‘‘(A) financial planning for postsecondary 12 education; 13 ‘‘(B) basic personal income, household 14 money management, and financial planning 15 skills; and 16 ‘‘(C) economic 17 skills;’’; and 18 (3) in subsection (c)— decisionmaking 19 (A) by redesignating paragraphs (2) and 20 (3) as paragraphs (3) and (4), respectively; and 21 (B) by inserting after paragraph (1) the 22 following new paragraph: 23 ‘‘(2) require an assurance that the remaining 24 persons participating in the project proposed to be g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 basic 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 174 1 carried out under any application be low-income in- 2 dividuals or first generation college students;’’; 3 (C) in paragraph (3), as so redesignated, 4 by striking ‘‘and’’ at the end; 5 (D) in paragraph (4), as so redesignated, 6 by striking the period at the end and inserting 7 ‘‘; and’’; and 8 (E) by adding at the end the following: 9 ‘‘(5) require the grantee to maintain, to the ex- 10 tent practicable, a record of any services participants 11 receive during the project year from another pro- 12 gram under this chapter or other federally funded 13 program serving similar populations to minimize the 14 duplication of services.’’. 15 (g) STAFF DEVELOPMENT ACTIVITIES.—Section 16 402G(b) (20 U.S.C. 1070a–17(b)) is amended— 17 (1) in the matter preceding paragraph (1)— 18 (A) by inserting ‘‘webinars and online 19 classes,’’ after ‘‘seminars, workshops,’’; and 20 (B) by striking ‘‘directors’’ and inserting 21 ‘‘staff’’; and 22 (2) in paragraph (3), by inserting ‘‘and innova- 23 tive’’ after ‘‘model’’. 24 (h) REPORTS, EVALUATIONS, 25 PROJECT IMPROVEMENT g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 AND AND GRANTS FOR DISSEMINATION.—Sub- (680541 26) PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 175 1 section (b) of section 402H (20 U.S.C. 1070a–18) is 2 amended to read as follows: 3 ‘‘(b) EVALUATIONS.— 4 ‘‘(1) IN the purpose of improv- 5 ing the effectiveness of the programs assisted under 6 this chapter, the Secretary shall make grants to or 7 enter into contracts with one or more organizations 8 to— 9 ‘‘(A) evaluate the effectiveness of the pro- 10 grams assisted under this chapter; and 11 ‘‘(B) disseminate information on the im- 12 pact of the programs in increasing the edu- 13 cation level of participants, as well as other ap- 14 propriate measures. 15 ‘‘(2) ISSUES TO BE EVALUATED.—The evalua- 16 tions described in paragraph (1) shall measure the 17 effectiveness of programs funded under this chapter 18 in— 19 ‘‘(A) meeting or exceeding the stated ob- 20 jectives regarding the outcome criteria under 21 subsection (f) of section 402A; 22 ‘‘(B) enhancing the access of low-income 23 individuals and first-generation college students 24 to postsecondary education; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—For 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 176 1 ‘‘(C) preparing individuals for postsec- 2 ondary education; 3 ‘‘(D) comparing the level of education com- 4 pleted by students who participate in the pro- 5 grams funded under this chapter with the level 6 of education completed by students of similar 7 backgrounds who do not participate in such 8 programs; 9 ‘‘(E) comparing the retention rates, drop- 10 out rates, graduation rates, and college admis- 11 sion and completion rates of students who par- 12 ticipate in the programs funded under this 13 chapter with the rates of students of similar 14 backgrounds who do not participate in such 15 programs; and 16 ‘‘(F) such other issues as the Secretary 17 considers appropriate for inclusion in the eval- 18 uation. 19 ‘‘(3) PROGRAM evaluations 20 shall also investigate the effectiveness of alternative 21 and innovative methods within programs funded 22 under this chapter of increasing access to, and re- 23 tention of, students in postsecondary education. 24 25 ‘‘(4) RESULTS.—The Secretary shall submit to the authorizing committees— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 METHODS.—Such 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 177 1 ‘‘(A) an interim report on the progress and 2 preliminary results of the evaluation of each 3 program funded under this chapter not later 4 than 2 years following the date of enactment of 5 the PROSPER Act; and 6 ‘‘(B) a final report not later than 3 years 7 following the date of enactment of such Act. 8 ‘‘(5) PUBLIC AVAILABILITY.—All reports and 9 underlying data gathered pursuant to this subsection 10 shall be made available to the public upon request, 11 in a timely manner following submission of the ap- 12 plicable reports under this subsection, except that 13 any personally identifiable information with respect 14 to a student participating in a program or project 15 assisted under this chapter shall not be disclosed or 16 made available to the public.’’. 17 (i) IMPACT GRANTS.—Part A of title IV (20 U.S.C. 18 1070 et seq.) is amended by inserting after section 402H 19 (20 U.S.C. 1070a–28) the following: 20 ‘‘SEC. 402I. IMPACT GRANTS. 21 ‘‘(a) IN GENERAL.—From funds reserved under sub- 22 section (e), the Secretary shall make grants to improve 23 postsecondary access and completion rates for qualified in24 dividuals from disadvantaged backgrounds. These grants 25 shall be known as innovative measures promoting postsec- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 178 1 ondary access and completion grants or ‘IMPACT Grants’ 2 and allow eligible entities to— 3 ‘‘(1) create, develop, implement, replicate, or 4 take to scale evidence-based, field-initiated innova- 5 tions, including through pay-for-success initiatives, 6 to serve qualified individuals from disadvantaged 7 backgrounds and improve student outcomes; and 8 9 10 ‘‘(2) rigorously evaluate such innovations, in accordance with subsection (d). ‘‘(b) DESCRIPTION OF GRANTS.—The grants de- 11 scribed in subsection (a) shall include— 12 ‘‘(1) early-phase grants to fund the develop- 13 ment, implementation, and feasibility testing of a 14 program, which prior research suggests has a prom- 15 ise, for the purpose of determining whether the pro- 16 gram can successfully improve postsecondary access 17 and completion rates; 18 ‘‘(2) mid-phase grants to fund implementation 19 and a rigorous evaluation of a program that has 20 been successfully implemented under an early-phase 21 grant described in paragraph (1); and 22 ‘‘(3) expansion grants to fund implementation 23 and a rigorous replication evaluation of a program 24 that has been found to produce sizable, important g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 179 1 impacts under a mid-phase grant described in para- 2 graph (2) for the purposes of— 3 ‘‘(A) determining whether such outcomes 4 can be successfully reproduced and sustained 5 over time; and 6 ‘‘(B) identifying the conditions in which 7 the project is most effective. 8 9 ‘‘(c) REQUIREMENTS TIONS.—To FOR APPROVAL OF APPLICA- receive a grant under this section, an eligible 10 entity shall submit an application to the Secretary at such 11 time, and in such manner as the Secretary may require, 12 which shall include— 13 ‘‘(1) an assurance that not less than two-thirds 14 of the individuals who will participate in the pro- 15 gram proposed to be carried out with the grant will 16 be— 17 ‘‘(A) low-income individuals who are first 18 generation college students; or 19 ‘‘(B) individuals with disabilities; 20 ‘‘(2) an assurance that any other individuals 21 (not described in paragraph (1)) who will participate 22 in such proposed program will be— 23 ‘‘(A) low-income individuals; 24 ‘‘(B) first generation college students; or 25 ‘‘(C) individuals with disabilities; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 180 1 ‘‘(3) a detailed description of the proposed pro- 2 gram, including how such program will directly ben- 3 efit students; 4 5 ‘‘(4) the number of projected students to be served by the program; 6 ‘‘(5) how the program will be evaluated; and 7 ‘‘(6) an assurance that the individuals partici- 8 pating in the project proposed are individuals who 9 do not have access to services from another pro- 10 grams funded under this section. 11 ‘‘(d) EVALUATION.—Each eligible entity receiving a 12 grant under this section shall conduct an independent 13 evaluation of the effectiveness of the program carried out 14 with such grant and shall submit to the Secretary, on an 15 annual basis, a report that includes— 16 17 ‘‘(1) a description of how funds received under this section were used; 18 19 ‘‘(2) the number of students served by the project carried out under this section; and 20 ‘‘(3) a quantitative analysis of the effectiveness 21 of the project. 22 ‘‘(e) FUNDING.—From amounts appropriated under 23 section 402A(g), the Secretary shall reserve not less than 24 10 percent of such funds to carry out this section.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00180 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 181 1 SEC. 403. GAINING EARLY AWARENESS AND READINESS 2 FOR UNDERGRADUATE PROGRAMS. 3 4 (a) EARLY INTERVENTION NESS AND COLLEGE AWARE- PROGRAM.—Section 404A (20 U.S.C. 1070a–21) is 5 amended— 6 (1) in subsection (a)(1), by striking ‘‘academic 7 support’’ and inserting ‘‘academic support for col- 8 lege readiness’’; 9 (2) in subsection (b)— 10 (A) in paragraph (1), by inserting ‘‘new’’ 11 before ‘‘awards’’; and 12 (B) in paragraph (3)— 13 (i) by amending subparagraph (A) to 14 read as follows: 15 ‘‘(A) give priority to eligible entities that 16 have a prior, demonstrated commitment to 17 early intervention leading to college access and 18 readiness through collaboration and replication 19 of successful strategies; and’’; and 20 (ii) in subparagraph (B), by striking 21 ‘‘the Higher Education Opportunity Act’’ 22 and inserting ‘‘the PROSPER Act’’; and 23 (C) by adding at the end the following: 24 ‘‘(4) MULTIPLE 25 entities described in subsection (c)(1) that receive a 26 grant under this chapter shall not be eligible to re- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AWARD PROHIBITION.—Eligible 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00181 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 182 1 ceive an additional grant under this chapter until 2 after the date on which the initial grant period ex- 3 pires.’’. 4 (3) in subsection (c)(2)(B), by striking ‘‘institu- 5 tions or agencies sponsoring programs authorized 6 under subpart 4,’’. 7 (b) APPLICATIONS.—Section 404C (20 U.S.C. 8 1070a–23) is amended— 9 (1) in subsection (a)— 10 (A) in paragraph (2)— 11 (i) in the matter preceding subpara- 12 graph (A)— 13 (I) by striking ‘‘, contain or be 14 accompanied by such information or 15 assurances,’’; and 16 (II) by striking ‘‘, at a min- 17 imum’’; 18 (ii) by amending subparagraph (B) to 19 read as follows: 20 ‘‘(B) describe, in the case of an eligible en- 21 tity described in section 404A(c)(2) that choos- 22 es to provide scholarships, or an eligible entity 23 described in section 404A(c)(1)— 24 ‘‘(i) the eligible entity’s plan to estab- 25 lish or maintain a financial assistance pro- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00182 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 183 1 gram in accordance with the requirements 2 of section 404E, including any eligibility 3 criteria other than the criteria described in 4 section 404E(g), such as— 5 ‘‘(I) 6 financial need; 7 ‘‘(II) meeting and maintaining 8 satisfactory academic progress; and 9 ‘‘(III) other criteria aligned with 10 State and local goals to increase post- 11 secondary readiness, access, and com- 12 pletion; and 13 ‘‘(ii) how the eligible entity will meet 14 the other requirements of section 404E;’’; 15 (iii) by striking subparagraph (H); 16 and 17 (iv) by redesignating subparagraphs 18 (I) and (J) as subparagraphs (H) and (I), 19 respectively; and 20 21 (2) in subsection (b), by striking paragraph (2) and inserting the following: 22 ‘‘(2) 23 matching 24 (1)(A), the Secretary may— 25 08:59 Dec 01, 2017 SPECIAL RULE.—Notwithstanding requirement described in the paragraph ‘‘(A) at the time of application— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 demonstrating Jkt 000000 (680541 26) PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 184 1 ‘‘(i) approve a Partnership applicant’s 2 request for a waiver of up to 75 percent of 3 the matching requirement for up to two 4 years if the applicant demonstrates in its 5 application a significant economic hardship 6 that stems from a specific, exceptional, or 7 uncontrollable event, such as a natural dis- 8 aster, that has a devastating effect on the 9 members of the Partnership and the com- 10 munity in which the project would operate; 11 ‘‘(ii)(I) approve a Partnership appli- 12 cant’s request to waive up to 50 percent of 13 the matching requirement for up to two 14 years if the applicant demonstrates in its 15 application a pre-existing and an on-going 16 significant economic hardship that pre- 17 cludes the applicant from meeting its 18 matching requirement; and 19 ‘‘(II) provide tentative approval 20 of an applicant’s request for a waiver 21 under subclause (I) for all remaining 22 years of the project period; 23 ‘‘(iii) approve a Partnership appli- 24 cant’s request in its application to match 25 its contributions to its scholarship fund, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00184 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 185 1 established under section 404E, on the 2 basis of two non-Federal dollars for every 3 one dollar of Federal funds provided under 4 this chapter; or 5 ‘‘(iv) approve a request by a Partner- 6 ship applicant that has three or fewer in- 7 stitutions of higher education as members 8 to waive up to 70 percent of the matching 9 requirement if the Partnership applicant 10 includes— 11 ‘‘(I) a fiscal agent that is eligible 12 to receive funds under title V, or part 13 B of title III, or section 316 or 317, 14 or a local educational agency; 15 ‘‘(II) only participating schools 16 with a 7th grade cohort in which at 17 least 75 percent of the students are 18 eligible for free or reduced-price lunch 19 under the Richard B. Russell National 20 School Lunch Act; and 21 ‘‘(III) local educational 22 agencies in which at least 50 percent 23 of the students enrolled are eligible 24 for free or reduced-price lunch under g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 only 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 186 1 the 2 School Lunch Act; and B. Russell National 3 ‘‘(B) after a grant is awarded, approve a 4 Partnership grantee’s written request for a 5 waiver of up to—— 6 ‘‘(i) 50 percent of the matching re- 7 quirement for up to two years if the grant- 8 ee demonstrates that— 9 ‘‘(I) the matching contributions 10 described for those two years in the 11 grantee’s approved application are no 12 longer available; and 13 ‘‘(II) the grantee has exhausted 14 all funds and sources of potential con- 15 tributions for replacing the matching 16 funds; or 17 ‘‘(ii) 75 percent of the matching re- 18 quirement for up to two years if the grant- 19 ee demonstrates that matching contribu- 20 tions from the original application are no 21 longer available due to an uncontrollable 22 event, such as a natural disaster, that has 23 a devastating economic effect on members 24 of the Partnership and the community in 25 which the project would operate. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 Richard 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00186 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 187 1 ‘‘(3) ADDITIONAL 2 ‘‘(A) ON-GOING ECONOMIC HARDSHIP.—In 3 determining whether a Partnership applicant is 4 experiencing an on-going economic hardship 5 that is significant enough to justify a waiver 6 under subparagraphs (A)(i) and (A)(ii)(I) of 7 paragraph (2), the Secretary may consider doc- 8 umentation of the following: 9 ‘‘(i) Severe distress in the local econ- 10 omy of the community to be served by the 11 grant (e.g., there are few employers in the 12 local area, large employers have left the 13 local area, or significant reductions in em- 14 ployment in the local area). 15 ‘‘(ii) Local unemployment rates that 16 are higher than the national average. 17 ‘‘(iii) Low or decreasing revenues for 18 State and County governments in the area 19 to be served by the grant. 20 ‘‘(iv) Significant reductions in the 21 budgets of institutions of higher education 22 that are participating in the grant. 23 ‘‘(v) Other data that reflect a signifi- 24 cant economic hardship for the geo- 25 graphical area served by the applicant. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TERMS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00187 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 188 1 ‘‘(B) EXHAUSTION deter- 2 mining whether a Partnership grantee has ex- 3 hausted all funds and sources of potential con- 4 tributions for replacing matching funds under 5 paragraph (2)(B), the secretary may consider 6 the grantee’s documentation of key factors that 7 have had a direct impact on the grantee such 8 as the following: 9 ‘‘(i) A reduction of revenues from 10 State government, County government, or 11 the local educational agency. 12 ‘‘(ii) An increase in local unemploy- 13 ment rates. 14 ‘‘(iii) Significant reductions in the op- 15 erating budgets of institutions of higher 16 education that are participating in the 17 grant. 18 ‘‘(iv) A reduction of business activity 19 in the local area (e.g., large employers have 20 left the local area). 21 ‘‘(v) Other data that reflect a signifi- 22 cant decrease in resources available to the 23 grantee in the local geographical area 24 served by the grantee. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF FUNDS.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00188 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 189 1 ‘‘(C) RENEWAL OF WAIVER.—A Partner- 2 ship applicant that receives a tentative approval 3 of a waiver under subparagraph (A)(ii)(II) of 4 paragraph (2) for more than two years under 5 this paragraph must submit to the Secretary 6 every two years by such time as the Secretary 7 may direct documentation that demonstrates 8 that— 9 ‘‘(i) the significant economic hardship 10 upon which the waiver was granted still ex- 11 ists; and 12 ‘‘(ii) the grantee tried diligently, but 13 unsuccessfully, 14 needed to meet the matching requirement. 15 ‘‘(D) MULTIPLE to obtain contributions WAIVERS.—If a grantee 16 has received one or more waivers under para- 17 graph (2), the grantee may request an addi- 18 tional waiver of the matching requirement 19 under this subsection not earlier than 60 days 20 before the expiration of the grantee’s existing 21 waiver.’’. 22 (c) ACTIVITIES.—Section 404D (20 U.S.C. 1070a– 23 24) is amended— 24 (1) in subsection (a)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00189 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 190 1 (A) in paragraph (1), by striking ‘‘finan- 2 cial aid for’’ and inserting ‘‘financial aid, in- 3 cluding loans, grants, scholarships, and institu- 4 tional aid for’’; 5 (B) in paragraph (2) by striking ‘‘rigorous 6 and challenging curricula and coursework, in 7 order 8 coursework designed to’’; 9 and inserting ‘‘curricula and (C) by redesignating paragraphs (3) and 10 (4) as paragraphs (5) and (6), respectively; 11 (D) by inserting after paragraph (2) the 12 following: 13 ‘‘(3) Providing information to students and 14 families about the advantages of obtaining a postsec- 15 ondary education. 16 ‘‘(4) Providing tutors and mentors, who may in- 17 clude adults or former participants of a program 18 under this chapter, for use by eligible students in 19 need.’’; 20 (E) in paragraph (5), as so redesignated, 21 by striking ‘‘Improving’’ and inserting ‘‘Pro- 22 viding supportive services to improve’’; and 23 (2) in subsection (b)— 24 (A) by striking paragraph (1); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 to’’ 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 191 1 (B) redesignating paragraphs (2) 2 through (15) as paragraphs (1) through (14), 3 respectively; 4 (C) in paragraph (3), as so redesignated, 5 by striking ‘‘rigorous’’ each place it appears; 6 (D) in paragraph (9), as so redesignated— 7 (i) by redesignating subparagraphs 8 (E) through (K) as subparagraphs (F) 9 through (L), respectively; 10 (ii) by inserting after subparagraph 11 (D) the following: 12 ‘‘(E) providing counseling or referral serv- 13 ices to address the behavioral, social-emotional, 14 and mental health needs of at-risk students;’’; 15 (iii) in subparagraph (I), as so redes- 16 ignated, by striking ‘‘skills assessments’’ 17 and inserting ‘‘skills, cognitive, non-cog- 18 nitive, and credit-by-examination assess- 19 ments’’; 20 (iv) in subparagraph (K), as so redes- 21 ignated, by striking ‘‘and’’ at the end; 22 (v) in subparagraph (L), as so redes- 23 ignated, by striking the period at the end 24 and inserting ‘‘; and’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 by 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 192 1 (vi) by adding at the end the fol- 2 lowing: 3 ‘‘(M) capacity building activities that cre- 4 ate 5 schools and local education agencies.’’; and college-going cultures in participating 6 (E) by adding at the end the following: 7 ‘‘(15) Creating or expanding drop-out recovery 8 programs that allow individuals who drop out of 9 school to complete a regular secondary school di- 10 ploma and begin college-level work.’’; 11 (F) in subsection (c)— 12 (i) in paragraph (3), by inserting 13 ‘‘and technical assistance’’ after ‘‘adminis- 14 trative support’’; and 15 (ii) by striking paragraph (9); and 16 (3) in subsection (e), by striking ‘‘institutions 17 and agencies sponsoring programs authorized under 18 subpart 4,’’. 19 (d) SCHOLARSHIP REQUIREMENTS.—Section 404E 20 (20 U.S.C. 1070a–25) is amended— 21 (1) in subsection (a)(1), by inserting ‘‘described 22 in section 404C(a)(2)(B)(i)’’ after ‘‘financial assist- 23 ance program’’; and 24 (2) in subsection (e)(1), by striking ‘‘an 25 amount’’ and all that follows through the period at g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00192 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 193 1 the end and inserting the following: ‘‘an estimated 2 amount that is based on the requirements of the fi- 3 nancial assistance program of the eligible entity de- 4 scribed in section 404C(a)(2)(B)(i).’’ 5 (e) EVALUATION AND REPORT.—Section 404G(b) 6 (20 U.S.C. 1070a–27(b)) is amended— 7 8 (1) in paragraph (1), by striking ‘‘and’’ at the end; 9 10 (2) in paragraph (2), by striking the period at the end and inserting ‘‘; and’’ 11 (3) by adding after paragraph (2) the following: 12 ‘‘(3) include the following metrics: 13 ‘‘(A) the number of students completing 14 the Free Application for Federal Student Aid; 15 ‘‘(B) the enrollment of participating stu- 16 dents in curricula and coursework designed to 17 reduce the need for remedial coursework at the 18 postsecondary level; 19 ‘‘(C) if applicable, the number of students 20 receiving a scholarship; 21 ‘‘(B) the graduation rate of participating 22 students from high school; 23 ‘‘(C) the enrollment of participating stu- 24 dents into postsecondary education; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00193 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 194 1 ‘‘(D) such other information as the Sec- 2 retary may require.’’. 3 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 4 404H (20 U.S.C. 1070a–28) is amended by striking 5 ‘‘$400,000,000 for fiscal year 2009 and such sums as may 6 be necessary for each of the five succeeding fiscal years’’ 7 and inserting ‘‘$339,754,000 for fiscal year 2019 and 8 each of the five succeeding fiscal years’’. 9 SEC. 404. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAM- 10 ILIES ARE ENGAGED IN MIGRANT AND SEA- 11 SONAL FARMWORK. 12 Section 418A(i) (20 U.S.C. 1070d—2(i)) is amended 13 by striking ‘‘$75,000,000’’ and all that follows through 14 the period at the end and inserting ‘‘$44,623,000 for each 15 of fiscal years 2019 through 2024.’’. 16 SEC. 405. CHILD 17 18 ACCESS MEANS PARENTS IN SCHOOL. Section 419N (20 U.S.C. 1070e) is amended— 19 (1) in the heading of paragraph (6) of sub- 20 section (b), by striking ‘‘CONSTRUCTION’’ and in- 21 serting ‘‘RULE 22 and (A) in paragraph (4), by striking ‘‘as- 24 sisted’’ and inserting ‘‘funded’’; 25 (B) in paragraph (5)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 OF CONSTRUCTION’’; (2) in subsection (c)— 23 VerDate 0ct 09 2002 CARE Jkt 000000 (680541 26) PO 00000 Frm 00194 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 195 1 (i) by striking ‘‘resources, including 2 technical expertise’’ and inserting ‘‘re- 3 sources, including non-Federal resources, 4 technical expertise,’’; 5 (ii) by striking ‘‘the use of the’’ and 6 inserting ‘‘these’’; and 7 (C) in paragraph (9)— 8 (i) by inserting ‘‘provisional status,’’ 9 after ‘‘approval,’’; and 10 (ii) by striking ‘‘; and’’ and inserting 11 ‘‘prior to serving children and families; 12 and’’; 13 (3) in subsection (d)— 14 (A) in paragraph (1)— 15 (i) by striking ‘‘local’’ and inserting 16 ‘‘non-Federal, local,’’; and 17 (ii) by striking ‘‘and’’ at the end; 18 (B) in paragraph (2), by striking the pe- 19 riod at the end and inserting ‘‘; and’’; and 20 (C) by adding at the end the following: 21 ‘‘(3) coordinate with other community programs 22 where appropriate to improve the quality and limit 23 cost of the campus-based program.’’; 24 25 (4) by amending subsection (e) to read as follows: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00195 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 196 1 2 ‘‘(e) REPORTING REQUIREMENTS; CONTINUING ELIGIBILITY.— 3 ‘‘(1) REPORTING 4 ‘‘(A) REPORTS.—Each institution of high- 5 er education receiving a grant under this sec- 6 tion shall report to the Secretary annually. The 7 Secretary shall annually publish such reports on 8 a publicly accessible website of the Department 9 of Education. 10 ‘‘(B) CONTENTS.—Each report shall in- 11 clude— 12 ‘‘(i) data on the population served 13 under this section, including the total num- 14 ber of children and families served; 15 ‘‘(ii) information on sources of cam- 16 pus and community resources and the 17 amount of non-Federal funding used to 18 help low-income students access child care 19 services on campus; 20 ‘‘(iii) documentation that the program 21 meets applicable licensing, certification, ap- 22 proval, or registration requirements; and 23 ‘‘(iv) a description of how funding was 24 used to pursue the goals of this section de- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REQUIREMENTS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00196 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 197 1 termined by the institution under sub- 2 section (c). 3 ‘‘(2) CONTINUING Secretary 4 shall make continuation awards under this section to 5 an institution of higher education only if the Sec- 6 retary determines, on the basis of the reports sub- 7 mitted under paragraph (1) and the application 8 from the institution, that the institution is— 9 ‘‘(A) using funds only for authorized pur- 10 poses; 11 ‘‘(B) providing low-income students at the 12 institution with priority access to affordable, 13 quality child care services as provided under 14 this section; and 15 ‘‘(C) documenting a continued need for 16 Federal funding under this section, while dem- 17 onstrating how non-federal sources will be lever- 18 aged to support a continuation award.’’; and 19 (5) in subsection (g), by striking ‘‘such sums as 20 may be necessary for fiscal year 2009 and each of 21 the five succeeding fiscal years’’ and inserting 22 ‘‘$15,134,000 for each of fiscal years 2019 through 23 2024’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ELIGIBILITY.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00197 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 198 1 SEC. 406. REPEALS. 2 (a) ACADEMIC COMPETITIVENESS GRANTS.—Section 3 401A (20 U.S.C. 1070a–1) is repealed. 4 5 (b) FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY 6 (1) REPEAL.—Subpart 3 of part A of title IV 7 (20 U.S.C. 1070b et seq.) is repealed. 8 (2) EFFECTIVE 9 DATE.—The repeal made by paragraph (1) shall take effect on June 30, 2018. 10 11 GRANTS.— (c) LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.—Subpart 4 of part A of title IV (20 12 U.S.C. 1070c et seq.) is repealed. 13 14 (d) ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.—Subpart 6 of part A of title IV (20 U.S.C. 1070d– 15 31 et seq.) is repealed. 16 SEC. 407. SUNSET OF TEACH GRANTS. 17 Subpart 9 of part A of title IV (20 U.S.C. 1070g) 18 is amended— 19 (1) in section 420L(1) (20 U.S.C. 1070g(1), by 20 striking ‘‘section 102’’ and inserting ‘‘section 102 21 (as in effect on the day before the date of enactment 22 of the PROSPER Act)’’; 23 (2) in section 420N (20 U.S.C. 1070g–2)— 24 (A) by amending subparagraph (B) of sub- 25 section (b)(1) to read as follows: 26 ‘‘(B) teach— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00198 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 199 1 ‘‘(i) in a public or other nonprofit pri- 2 vate elementary school or secondary school, 3 which, for the purpose of this paragraph 4 and for that year— 5 ‘‘(I) has been determined by the 6 Secretary (pursuant to regulations of 7 the Secretary and after consultation 8 with the State educational agency of 9 the State in which the school is lo- 10 cated) to be a school in which the 11 number of children meeting a measure 12 of poverty under section 1113(a)(5) of 13 the Elementary and Secondary Edu- 14 cation 15 6313(a)(5)), exceeds 30 percent of the 16 total number of children enrolled in 17 such school; and of 1965 (20 U.S.C. 18 ‘‘(II) is in the school district of a 19 local educational agency which is eligi- 20 ble in such year for assistance pursu- 21 ant to part A of title I of the Elemen- 22 tary and Secondary Education Act of 23 1965 (20 U.S.C. 6311 et seq.); or 24 ‘‘(ii) in one or more public, or non- 25 profit private, elementary schools or sec- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 Act 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00199 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 200 1 ondary schools or locations operated by an 2 educational service agency that have been 3 determined by the Secretary (pursuant to 4 regulations of the Secretary and after con- 5 sultation with the State educational agency 6 of the State in which the educational serv- 7 ice agency operates) to be a school or loca- 8 tion at which the number of children 9 taught who meet a measure of poverty 10 under section 1113(a)(5) of the Elemen- 11 tary and Secondary Education Act of 1965 12 (20 U.S.C. 6313(a)(5)), exceeds 30 per- 13 cent of the total number of children taught 14 at such school or location;’’; and 15 (B) in subsection (c), by inserting ‘‘(as in 16 effect on the day before the date of the enact- 17 ment of the PROSPER Act)’’ after ‘‘part D of 18 title IV’’; 19 (3) in section 420M(a) (20 U.S.C. 1070g–1), 20 by adding at the end the following: 21 ‘‘(3) TERMINATION.— 22 ‘‘(A) TERMINATION 23 ITY.—No 24 subpart after June 30, 2018. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF PROGRAM AUTHOR- 08:59 Dec 01, 2017 Jkt 000000 new grants may be made under this (680541 26) PO 00000 Frm 00200 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 201 1 ‘‘(B) LIMITATION funds 2 are authorized to be appropriated, and no funds 3 may be obligated or expended under this Act or 4 any other Act, to make a grant under this sub- 5 part for which the first disbursement would be 6 made after June 30, 2018.’’; and 7 (4) in section 420O (20 U.S.C. 1070g–3)— 8 (A) by striking ‘‘2008’’ and inserting 9 ‘‘2008, and ending on June 30, 2018’’; and 10 (B) by adding at the end the following: 11 ‘‘No funds shall be available to the Secretary to 12 carry out this subpart after June 30, 2018.’’. 13 PART B—FEDERAL FAMILY EDUCATION LOAN 14 PROGRAM 15 SEC. 421. FEDERAL DIRECT CONSOLIDATION LOANS. 16 Section 428C (20 U.S.C. 1078–3) is amended— 17 (1) in subsection (a)(4)(B), by inserting before 18 the semicolon at the end ‘‘, as in effect on the day 19 before the date of enactment of the PROSPER Act 20 and pursuant to section 461(a) of such Act’’; and 21 (2) in subsection (b)(1)(F)(ii)— 22 (A) in the matter preceding subclause (I), 23 by inserting ‘‘, as in effect on the day before 24 the date of enactment of the PROSPER Act g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ON FUNDS.—No 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00201 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 202 1 and pursuant to section 461(a) of such Act’’ 2 after ‘‘part E’’; 3 (B) in subclause (I), in the matter pre- 4 ceding item (aa), by inserting ‘‘, as so in ef- 5 fect,’’ after ‘‘part E’’; 6 (C) in subclause (I)(bb), by inserting ‘‘, as 7 so in effect’’ after ‘‘section 464(c)(1)(A)’’; 8 (D) in subclause (II), by inserting ‘‘, as so 9 in effect’’ after ‘‘section 465(a)’’; and 10 (E) in subclause (III)— 11 (i) by inserting ‘‘, as so in effect’’ 12 after ‘‘section 465’’; and 13 (ii) by inserting ‘‘, as so in effect’’ 14 15 after ‘‘465(a)’’. SEC. 422. LOAN REHABILITATION. 16 Section 428F(a)(5) (20 U.S.C. 1078–6) is amended 17 by striking ‘‘one time’’ and inserting ‘‘two times’’. 18 SEC. 423. LOAN FORGIVENESS FOR TEACHERS. 19 Section 428J(b)(1)(A) (20 U.S.C. 1087–10(b)(1)(A)) 20 is amended by striking ‘‘that qualifies under section 21 465(a)(2)(A) for loan cancellation for Perkins loan recipi22 ents who teach in such schools or locations’’ and inserting 23 ‘‘described in section 420N(b)(1)(B)’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00202 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 203 1 SEC. 424. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 2 3 NATIONAL NEED. Section 428K (20 U.S.C. 1078–11) is amended— 4 (1) in subsection (b)— 5 (A) in paragraph (4)(B), by striking ‘‘that 6 qualifies under section 465(a)(2)(A) for loan 7 cancellation for Perkins loan recipients who 8 teach in such a school’’ and inserting ‘‘de- 9 scribed in section 420N(b)(1)(B)’’; 10 (B) in paragraph (5)(B)(ii), by striking 11 ‘‘that qualifies under section 465(a)(2)(A) for 12 loan cancellation for Perkins loan recipients 13 who teach in such a school’’ and inserting ‘‘de- 14 scribed in section 420N(b)(1)(B)’’; 15 (C) in paragraph (7)(A), by striking ‘‘that 16 qualifies under section 465(a)(2)(A) for loan 17 cancellation for Perkins loan recipients who 18 teach in such a school’’ and inserting ‘‘de- 19 scribed in section 420N(b)(1)(B)’’; 20 (D) in paragraph (8), by striking ‘‘that 21 qualifies under section 465(a)(2)(A) for loan 22 cancellation for Perkins loan recipients who 23 teach in such a school’’ and inserting ‘‘de- 24 scribed in section 420N(b)(1)(B)’’ ; and 25 (E) in paragraph (16), by striking ‘‘that 26 qualify under section 465(a)(2)(A) for loan can- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00203 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 204 1 cellation for Perkins loan recipients who teach 2 in such a school’’ and inserting ‘‘described in 3 section 420N(b)(1)(B)’’; and 4 (2) in subsection (g)(6)(B), by striking ‘‘that 5 qualifies under section 465(a)(2)(A) for loan can- 6 cellation for Perkins loan recipients who teach in 7 such a school’’ and inserting ‘‘described in section 8 420N(b)(1)(B)’’. 9 SEC. 425. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 10 ATTORNEYS. 11 Section 428L(b)(2)(A) (20 U.S.C. 1087– 12 12(b)(2)(A)) is amended— 13 (1) in clause (i), by inserting before the semi- 14 colon at the end ‘‘, as in effect on the day before the 15 date of enactment of the PROSPER Act and pursu- 16 ant to section 461(a) of such Act’’; and 17 (2) in clause (ii)(III), by inserting ‘‘, as in ef- 18 fect on the day before the date of enactment of the 19 PROSPER Act and pursuant to section 461(a) of 20 such Act’’ after ‘‘part E’’; 21 SEC. 426. SUNSET OF COHORT DEFAULT RATE AND OTHER 22 23 CONFORMING CHANGES. (a) REQUIREMENTS FOR THE SECRETARY.—Section 24 430(e) (20 U.S.C. 1080(e)) is amended by adding at the 25 end the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00204 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 205 1 ‘‘(4) SUNSET.—The Secretary shall not be sub- 2 ject to the requirements of this subsection after the 3 transition period described in section 481B(e)(3).’’. 4 (b) ELIGIBLE INSTITUTION DEFINED.—Section 435 5 (20 U.S.C. 1085) is amended— 6 (1) in subsection (a)— 7 (A) in paragraph (1), by striking ‘‘section 8 102’’ and inserting ‘‘section 101 and 102’’; and 9 (B) by adding at the end the following: 10 ‘‘(9) SUNSET.—No institution shall be subject to 11 paragraph (2) after the transition period described in sec12 tion 481B(e)(3).’’; 13 14 (2) in subsection (m), by adding at the end the following: 15 ‘‘(5) TRANSITION 16 ‘‘(A) TRANSITION PERIOD.—During the 17 transition period, the cohort default rate for an 18 institution shall be calculated in the manner de- 19 scribed in section 481B(e)(1). 20 ‘‘(B) SUNSET.—The Secretary shall not be 21 subject, and no institution shall be subject, to 22 the requirements of this subsection after the 23 transition period. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PERIOD; SUNSET.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00205 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 206 1 ‘‘(C) DEFINITION.—In this paragraph, the 2 term ‘transition period’ has the meaning given 3 the term in section 481B(e)(3).’’; and 4 (5) in subsection (o)(1), by inserting ‘‘, as in ef- 5 fect on the day before the date of enactment of the 6 PROSPER Act and pursuant to section 461(a) of 7 such Act’’ after ‘‘part E’’. 8 SEC. 427. CLOSED SCHOOL AND OTHER DISCHARGES. 9 Section 437(c) (20 U.S.C. 1087) is amended— 10 (1) in paragraph (1), by inserting ‘‘and the bor- 11 rower meets the applicable requirements of para- 12 graphs (6) through (8),’’ after ‘‘such student’s lend- 13 er,’’; 14 (6) in paragraph (4), by inserting before the pe- 15 riod at the end ‘‘, as in effect on the day before the 16 date of enactment of the PROSPER Act and pursu- 17 ant to section 461(a) of such Act’’; and 18 (3) by adding at the end the following: 19 ‘‘(6) 20 QUALIFICATIONS FOR A CLOSED SCHOOL DISCHARGE.— 21 ‘‘(A) IN GENERAL.—In order to qualify for 22 the discharge of a loan under this subsection 23 due to the closure of the institution in which 24 the borrower was enrolled, a borrower shall sub- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BORROWER 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00206 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 207 1 mit to the Secretary a written request and 2 sworn statement— 3 ‘‘(i) that contains true factual asser- 4 tions; 5 ‘‘(ii) that is made by the borrower 6 under penalty of perjury, and that may or 7 may not be notarized; 8 ‘‘(iii) under which the borrower (or 9 the student on whose behalf a parent bor- 10 rowed) states— 11 ‘‘(I) that the borrower or the stu- 12 dent— 13 ‘‘(aa) received, on or after 14 January 1, 1986, the proceeds of 15 a loan made, insured, or guaran- 16 teed under this title to attend a 17 program of study at an institu- 18 tion of higher education; 19 ‘‘(bb)(AA) did not complete 20 the program of study because the 21 institution closed while the stu- 22 dent was enrolled; or 23 ‘‘(BB) the student withdrew 24 from the institution not more 25 than 120 days before the institu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00207 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 208 1 tion closed, or in the case of ex- 2 ceptional circumstances described 3 in subparagraph (B), not more 4 than the period by which such 5 120-day period is extended under 6 such subparagraph; and 7 ‘‘(cc) attempted but was un- 8 able to complete the program of 9 study through a teach-out at an- 10 other institution or by transfer- 11 ring academic credits or hours 12 earned at the closed institution to 13 another institution; 14 ‘‘(II) whether the borrower (or 15 the student) has made a claim with 16 respect to the institutions’s closing 17 with any third party, such as the 18 holder of a performance bond or a tui- 19 tion recovery program, and, if so, the 20 amount of any payment received by 21 the borrower (or the student) or cred- 22 ited to the borrower’s loan obligation; 23 and 24 ‘‘(III) that the borrower (or the 25 student)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00208 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 209 1 ‘‘(aa) agrees to provide to 2 the Secretary or the holder of the 3 loan upon request other docu- 4 mentation reasonably available to 5 the borrower that demonstrates 6 that the borrower meets the 7 qualifications for discharge under 8 this subsection; and 9 ‘‘(bb) agrees to cooperate 10 with the Secretary in enforce- 11 ment actions in accordance with 12 subparagraph (C) and to transfer 13 any right to recovery against a 14 third party to the Secretary in 15 accordance 16 (D). 17 ‘‘(B) EXCEPTIONAL 18 ‘‘(i) IN subparagraph CIRCUMSTANCES.— GENERAL.—The Secretary 19 may extend the 120-day period described 20 in subparagraph (A)(iii)(I)(bb)(BB) if the 21 Secretary determines that exceptional cir- 22 cumstances related to an institution’s clos- 23 ing justify an extension. 24 ‘‘(ii) DEFINITION.—For purposes of 25 this subsection, the term ‘exceptional cir- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 with 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00209 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 210 1 cumstances’, when used with respect to an 2 institution that closed, includes the loss of 3 accreditation 4 institutions’s discontinuation of the major- 5 ity of its academic programs, action by the 6 State to revoke the institution’s license to 7 operate or award academic credentials in 8 the State, or a finding by a State or Fed- 9 eral Government agency that the institu- institution, 10 tion violated State or Federal law. 11 ‘‘(C) COOPERATION 12 FORCEMENT ACTIONS.— 13 ‘‘(i) IN the BY BORROWER IN EN- GENERAL.—In order to obtain 14 a discharge described in subparagraph (A), 15 a borrower shall cooperate with the Sec- 16 retary in any judicial or administrative 17 proceeding brought by the Secretary to re- 18 cover amounts discharged or to take other 19 enforcement action with respect to the con- 20 duct on which the discharge was based. At 21 the request of the Secretary and upon the 22 Secretary’s tendering to the borrower the 23 fees and costs that are customarily pro- 24 vided in litigation to reimburse witnesses, 25 the borrower shall— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 of 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00210 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 211 1 ‘‘(I) provide testimony regarding 2 any representation made by the bor- 3 rower to support a request for dis- 4 charge; 5 ‘‘(II) produce any documents rea- 6 sonably available to the borrower with 7 respect to those representations; and 8 ‘‘(III) if required by the Sec- 9 retary, provide a sworn statement re- 10 garding those documents and rep- 11 resentations. 12 ‘‘(ii) DENIAL 13 CHARGE.—The 14 quest for such a discharge or revoke the 15 discharge of a borrower who— Secretary shall deny the re- 16 ‘‘(I) fails to provide the testi- 17 mony, documents, or a sworn state- 18 ment required under clause (i); or 19 ‘‘(II) provides testimony, docu- 20 ments, or a sworn statement that does 21 not support the material representa- 22 tions made by the borrower to obtain 23 the discharge. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF REQUEST FOR DIS- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00211 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 212 1 ‘‘(D) TRANSFER 2 BORROWER’S 3 THIRD PARTIES.— 4 ‘‘(i) IN OF RECOVERY GENERAL.—Upon AGAINST receiving a 5 discharge described in subparagraph (A) of 6 a loan, the borrower shall be deemed to 7 have assigned to and relinquished in favor 8 of the Secretary any right to a loan refund 9 for such loan (up to the amount dis- 10 charged) that the borrower (or student) 11 may have by contract or applicable law 12 with respect to the loan or the enrollment 13 agreement for the program for which the 14 loan was received, against the institution, 15 its principals, its affiliates and their suc- 16 cessors, its sureties, and any private fund, 17 including the portion of a public fund that 18 represents funds received from a private 19 party. 20 ‘‘(ii) APPLICATION.—The provisions 21 of this subsection apply notwithstanding 22 any provision of State law that would oth- 23 erwise restrict transfer of such rights by 24 the borrower (or student), limit, or prevent 25 a transferee from exercising such rights, or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RIGHT TO THE SECRETARY OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00212 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 213 1 establish procedures or a scheme of dis- 2 tribution that would prejudice the Sec- 3 retary’s ability to recover on such rights. 4 ‘‘(iii) RULE CONSTRUCTION.— 5 Nothing in this subsection shall limit or 6 foreclose the borrower’s (or student’s) 7 right to pursue legal and equitable relief 8 regarding disputes arising from matters 9 unrelated to the discharged loan. 10 ‘‘(E) DISCHARGE 11 ‘‘(i) IN PROCEDURES.— GENERAL.—After confirming 12 the date of an institution’s closure, the 13 Secretary shall identify any borrower (or 14 student on whose behalf a parent bor- 15 rowed) who appears to have been enrolled 16 at the institution on the closure date of the 17 institution or to have withdrawn not more 18 than 120 days prior to the closure date (or 19 in the case of exceptional circumstances 20 described in subparagraph (B), not more 21 than the period by which such 120-day pe- 22 riod is extended under such subparagraph. 23 In the case of a loan made, insured, or 24 guaranteed under this part, a guaranty 25 agency shall notify the Secretary imme- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00213 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 214 1 diately whenever it becomes aware of reli- 2 able information indicating an institution 3 may have closed. 4 ‘‘(ii) BORROWER 5 ‘‘(I) KNOWN.—If the borrower’s 6 current address is known, the Sec- 7 retary shall mail the borrower a dis- 8 charge application and an explanation 9 of the qualifications and procedures 10 for obtaining a discharge. The Sec- 11 retary or the guaranty agency shall 12 promptly suspend any efforts to col- 13 lect from the borrower on any affected 14 loan. The Secretary may continue to 15 receive borrower payments of the loan 16 for which the discharge application 17 has been filed. 18 ‘‘(II) UNKNOWN.—If the bor- 19 rower’s current address is unknown, 20 the Secretary shall attempt to locate 21 the borrower and determine the bor- 22 rower’s potential eligibility for a dis- 23 charge described in subparagraph (A) 24 by consulting with representatives of 25 the closed institution, the institution’s g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ADDRESS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00214 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 215 1 licensing agency, the institution’s ac- 2 crediting agency, and other appro- 3 priate parties. If the Secretary learns 4 the new address of a borrower, the 5 Secretary shall mail to the borrower a 6 discharge application and explanation, 7 and shall suspend collection on the 8 loan, as described in subclause (I). 9 ‘‘(iii) SWORN a bor- 10 rower fails to submit the written request 11 and sworn statement described subpara- 12 graph (A) not later than 60 days after 13 date on which the Secretary mails the dis- 14 charge application under clause (ii), the 15 Secretary— 16 ‘‘(I) shall resume collection on 17 the loan and grant forbearance of 18 principal and interest for the period in 19 which collection activity was sus- 20 pended; and 21 ‘‘(II) may capitalize any interest 22 accrued and not paid during such pe- 23 riod. 24 ‘‘(iv) NOTIFICATION.— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 STATEMENT.—If 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00215 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 216 1 ‘‘(I) QUALIFICATIONS 2 the Secretary determines that a bor- 3 rower who requests a discharge de- 4 scribed in subparagraph (A) meets the 5 qualifications for such a discharge, 6 the Secretary shall— 7 ‘‘(aa) notify the borrower in 8 writing of that determination; 9 and 10 ‘‘(bb) not regard a borrower 11 who has defaulted on a loan that 12 has been so discharged as in de- 13 fault on the loan after such dis- 14 charge, and such a borrower shall 15 be eligible to receive assistance 16 under this title. 17 ‘‘(II) QUALIFICATIONS NOT 18 MET.—If 19 that a borrower who requests a dis- 20 charge described in subparagraph (A) 21 does not meet the qualifications for 22 such a discharge, the Secretary or 23 guaranty agency shall resume collec- 24 tion on the loan and notify the bor- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 MET.—If 08:59 Dec 01, 2017 Jkt 000000 the Secretary determines (680541 26) PO 00000 Frm 00216 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 217 1 rower in writing of that determination 2 and the reasons for the determination. 3 4 ‘‘(7) BORROWER CERTIFICATION DISCHARGE.— 5 ‘‘(A) APPLICATION.— 6 ‘‘(i) IN GENERAL.—In order to qualify 7 for false certification discharge under this 8 subsection, the borrower shall submit to 9 the Secretary, on a form approved by the 10 Secretary, an application for discharge 11 that— 12 ‘‘(I) does not need not be nota- 13 rized, but shall be made by the bor- 14 rower under penalty of perjury; and 15 ‘‘(II) demonstrates to the satis- 16 faction of the Secretary that the re- 17 quirements 18 through (G) have been met. 19 ‘‘(ii) NOTIFICATION.—If the Secretary 20 determines the application does not meet 21 the requirements of clause (i), the Sec- 22 retary shall notify the applicant and ex- 23 plain why the application does not meet 24 the requirements. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 QUALIFICATIONS FOR A FALSE 08:59 Dec 01, 2017 Jkt 000000 in subparagraphs (B) (680541 26) PO 00000 Frm 00217 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 218 1 ‘‘(B) HIGH 2 LENT.—In 3 false certification discharge based on not having 4 had a high school diploma and not having met 5 the alternative to graduation from high school 6 eligibility requirements under section 484(d) 7 applicable at the time the loan was originated, 8 and the institution or a third party to which the 9 institution referred the borrower falsified the 10 student’s high school diploma, the borrower 11 shall state in the application that the borrower 12 (or the student on whose behalf a parent bor- 13 rowed)— the case of a borrower requesting a 14 ‘‘(i) reported not having a valid high 15 school diploma or its equivalent at the time 16 the loan was certified; and 17 ‘‘(ii) did not satisfy the alternative to 18 graduation from high school statutory or 19 regulatory eligibility requirements identi- 20 fied on the application form and applicable 21 at the time the institution certified the 22 loan. 23 ‘‘(C) DISQUALIFYING CONDITION.—In the 24 case of a borrower requesting a false certifi- 25 cation discharge based on a condition that g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 SCHOOL DIPLOMA OR EQUIVA- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00218 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 219 1 would disqualify the borrower from employment 2 in the occupation that the program for which 3 the borrower received the loan was intended, 4 the borrower shall state in the application that 5 the borrower (or student on whose behalf the 6 parent borrowed) did not meet State require- 7 ments for employment (in the student’s State of 8 residence) in the occupation that the program 9 for which the borrower received the loan was in- 10 tended because of a physical or mental condi- 11 tion, age, criminal record, or other reason ac- 12 cepted by the Secretary. 13 ‘‘(D) UNAUTHORIZED the case 14 of a borrower requesting a discharge under this 15 subsection because the institution signed the 16 borrower’s name on the loan application or 17 promissory note without the borrower’s author- 18 ization, the borrower shall— 19 ‘‘(i) state that the borrower did not 20 sign the document in question or authorize 21 the institution to do so; and 22 ‘‘(ii) provide 5 different specimens of 23 the borrower’s signature, 2 of which must 24 be within one year before or after the date 25 of the contested signature. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LOAN.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 220 1 ‘‘(E) UNAUTHORIZED the 2 case of a borrower requesting a false certifi- 3 cation discharge because the institution, with- 4 out the borrower’s authorization, endorsed the 5 borrower’s loan check or signed the borrower’s 6 authorization for electronic funds transfer, the 7 borrower shall— 8 ‘‘(i) state that the borrower did not 9 endorse the loan check or sign the author- 10 ization for electronic funds transfer or au- 11 thorize the institution to do so; 12 ‘‘(ii) provide 5 different specimens of 13 the borrower’s signature, 2 of which must 14 be within one year before or after the date 15 of the contested signature; and 16 ‘‘(iii) state that the proceeds of the 17 contested disbursement were not delivered 18 to the borrower or applied to charges owed 19 by the borrower to the institution. 20 ‘‘(F) IDENTITY 21 ‘‘(i) IN THEFT.— GENERAL.—In the case of an 22 individual whose eligibility to borrow was 23 falsely certified because the individual was 24 a victim of the crime of identity theft and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PAYMENT.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00220 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 221 1 is requesting a discharge, the individual 2 shall— 3 ‘‘(I) certify that the individual 4 did not sign the promissory note, or 5 that any other means of identification 6 used to obtain the loan was used with- 7 out the authorization of the individual 8 claiming relief; 9 ‘‘(II) certify that the individual 10 did not receive or benefit from the 11 proceeds of the loan with knowledge 12 that the loan had been made without 13 the authorization of the individual; 14 ‘‘(III) provide a copy of a local, 15 State, or Federal court verdict or 16 judgment that conclusively determines 17 that the individual who is named as 18 the borrower of the loan was the vic- 19 tim of a crime of identity theft; and 20 ‘‘(IV) if the judicial determina- 21 tion of the crime does not expressly 22 state that the loan was obtained as a 23 result of the crime of identity theft, 24 provide— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00221 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 222 1 ‘‘(aa) authentic specimens of 2 the signature of the individual, as 3 described 4 (D)(ii), or of other means of 5 identification of the individual, as 6 applicable, corresponding to the 7 means of identification falsely 8 used to obtain the loan; and subparagraph 9 ‘‘(bb) statement of facts 10 that demonstrate, to the satisfac- 11 tion of the Secretary, that eligi- 12 bility for the loan in question was 13 falsely certified as a result of the 14 crime of identity theft committed 15 against that individual. 16 ‘‘(ii) DEFINITIONS.—For purposes of 17 this subparagraph: 18 ‘‘(I) IDENTITY THEFT.—The 19 term ‘identity theft’ means the unau- 20 thorized use of the identifying infor- 21 mation of another individual that is 22 punishable 23 1028A, 1029, or 1030 of title 18, 24 United States Code, or substantially 25 comparable State or local law. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 in 08:59 Dec 01, 2017 Jkt 000000 under section 1028, (680541 26) PO 00000 Frm 00222 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 223 1 ‘‘(II) 2 TION.—The 3 tion’ includes— INFORMA- term ‘identifying informa- 4 ‘‘(aa) name, Social Security 5 number, date of birth, official 6 State or government issued driv- 7 er’s license or identification num- 8 ber, alien registration number, 9 government passport number, 10 and employer or taxpayer identi- 11 fication number; 12 ‘‘(bb) unique biometric data, 13 such as fingerprints, voiceprint, 14 retina or iris image, or unique 15 physical representation; 16 ‘‘(cc) unique electronic iden- 17 tification number, address, or 18 routing code; or 19 ‘‘(dd) telecommunication 20 identifying information or access 21 device (as defined in 18 U.S.C. 22 1029(e)) borrower qualifications 23 for a false certification discharge 24 ‘‘(G) CLAIM 25 08:59 Dec 01, 2017 TO THIRD PARTY.—The bor- rower shall state whether the borrower has g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 IDENTIFYING Jkt 000000 (680541 26) PO 00000 Frm 00223 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 224 1 made a claim with respect to the institutions’s 2 false certification or unauthorized payment with 3 any third party, such as the holder of a per- 4 formance bond or a tuition recovery program, 5 and, if so, the amount of any payment received 6 by the borrower or credited to the borrower’s 7 loan obligation. 8 ‘‘(H) 9 RETARY.—The 10 WITH THE SEC- borrower shall state that the borrower— 11 ‘‘(i) agrees to provide to the Secretary 12 upon request other documentation reason- 13 ably available to the borrower that dem- 14 onstrates that the borrower meets the 15 qualifications for discharge under this sub- 16 section; and 17 ‘‘(ii) agrees to cooperate with the Sec- 18 retary in enforcement actions and to trans- 19 fer any right to recovery against a third 20 party to the Secretary. 21 ‘‘(8) BORROWER QUALIFICATIONS FOR AN UN- 22 PAID REFUND DISCHARGE.—To 23 refund discharge of a portion of a loan under this 24 subsection, a borrower shall submit to the holder or 25 guaranty agency a written application— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 COOPERATION 08:59 Dec 01, 2017 Jkt 000000 receive an unpaid (680541 26) PO 00000 Frm 00224 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 225 1 ‘‘(A) that requests the information re- 2 quired to calculate the amount of the discharge; 3 ‘‘(B) that the borrower signs for the pur- 4 pose of swearing to the accuracy of the infor- 5 mation; 6 ‘‘(C) that is made by the borrower under 7 penalty of perjury, and that may or may not be 8 notarized; 9 ‘‘(D) under which the borrower states— 10 ‘‘(i) that the borrower— 11 ‘‘(I) received, on or after January 12 1, 1986, the proceeds of a loan, in 13 whole or in part, made, insured, or 14 guaranteed under this title to attend 15 an institution of higher education; 16 ‘‘(II) did not attend, withdrew, or 17 was terminated from the institution 18 within a timeframe that entitled the 19 borrower to a refund; and 20 ‘‘(III) did not receive the benefit 21 of a refund to which the borrower was 22 entitled either from the institution or 23 from a third party, such as the holder 24 of a performance bond or a tuition re- 25 covery program; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00225 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 226 1 ‘‘(ii) whether the borrower has any 2 other application for discharge pending for 3 this loan; and 4 ‘‘(iii) that the borrower— 5 ‘‘(I) agrees to provide to the Sec- 6 retary upon request other documenta- 7 tion reasonably available to the bor- 8 rower that demonstrates that the bor- 9 rower meets the qualifications for dis- 10 charge under this subsection; and 11 ‘‘(II) agrees to cooperate with the 12 Secretary in enforcement actions and 13 to transfer any right to recovery 14 against a third party to the Sec- 15 retary.’’. 16 PART C—FEDERAL WORK-STUDY PROGRAMS 17 SECTION 441. PURPOSE; AUTHORIZATION OF APPROPRIA- 18 19 TIONS. Section 441 (20 U.S.C. 1087–51) is amended— 20 (1) in subsection (a)— 21 (A) by striking ‘‘part-time’’ and inserting 22 ‘‘paid’’; 23 (B) by striking ‘‘, graduate, or profes- 24 sional’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00226 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 227 1 (C) by striking ‘‘community service’’ and 2 inserting ‘‘work-based learning’’; 3 (2) in subsection (b), by striking ‘‘part, such 4 sums as may be necessary for fiscal year 2009 and 5 each of the five succeeding fiscal years.’’ and insert- 6 ing ‘‘part, $1,722,858,000 for fiscal year 2019 and 7 each of the 5 succeeding fiscal years.’’; and 8 (3) by amending subsection (c) to read as fol- 9 lows: 10 ‘‘(c) WORK-BASED LEARNING.—For purposes of this 11 part, the term ‘work-based learning’ means paid inter12 actions with industry or community professionals in real 13 workplace settings that foster in-depth, first-hand engage14 ment with the tasks required of a given career field, that 15 are aligned to a student’s field of study.’’. 16 SEC. 442. ALLOCATION FORMULA. 17 Section 442 (20 U.S.C. 1087–52) is amended to read 18 as follows: 19 ‘‘SEC. 442. ALLOCATION OF FUNDS. 20 ‘‘(a) RESERVATIONS.— 21 22 ‘‘(1) RESERVATION TIONS.— 23 ‘‘(A) AMOUNT OF RESERVATION FOR IM- 24 PROVED INSTITUTIONS.—For 25 which the amount appropriated under section g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FOR IMPROVED INSTITU- 08:59 Dec 01, 2017 Jkt 000000 a fiscal year in (680541 26) PO 00000 Frm 00227 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 228 1 441(b) exceeds $700,000,000, the Secretary 2 shall— 3 ‘‘(i) reserve the lesser of— 4 ‘‘(I) an amount equal to 20 per- 5 cent of the amount by which the 6 amount appropriated under section 7 441(b) exceeds $700,000,000; or 8 ‘‘(II) $150,000,000; and 9 ‘‘(ii) allocate the amount reserved 10 under clause (i) to each improved institu- 11 tion in an amount— 12 ‘‘(I) that bears the same propor- 13 tion to the amount reserved under 14 clause (i) as the total amount of all 15 Federal Pell Grant funds awarded at 16 the improved institution for the sec- 17 ond preceding fiscal year bears to the 18 total amount of Federal Pell Grant 19 funds awarded at improved institu- 20 tions participating under this part for 21 the second preceding fiscal year; and 22 ‘‘(II) is not— 23 ‘‘(aa) less than $10,000; or 24 ‘‘(bb) 25 08:59 Dec 01, 2017 than $1,500,000. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 greater Jkt 000000 (680541 26) PO 00000 Frm 00228 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 229 1 ‘‘(B) 2 SCRIBED.—For 3 improved institution is an institution that, on 4 the date the Secretary makes an allocation 5 under subparagraph (A)(ii) is, with respect to— 6 ‘‘(i) the completion rate or graduation 7 rate of Federal Pell Grant recipients at the 8 institution, in the top 10 percent of— INSTITUTION DE- purposes of this paragraph, an 9 ‘‘(I) if the institution is an insti- 10 tution described in any of clauses (iv) 11 through (ix) of section 132(d)(1)(B), 12 all 13 under this part for the preceding fis- 14 cal year; or such institutions participating 15 ‘‘(II) if the institution is an insti- 16 tution described in any of clauses (i) 17 through (iii) of section 132(d)(1)(B), 18 all 19 under this part for the preceding fis- 20 cal year; or 21 ‘‘(ii) the improvement of the comple- 22 tion rate or graduation rate between the 23 preceding fiscal year and such date, in the 24 top 10 percent of the institutions described 25 in clause (i). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 IMPROVED 08:59 Dec 01, 2017 Jkt 000000 such institutions participating (680541 26) PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 230 1 ‘‘(C) COMPLETION 2 RATE.—For 3 pletion rate or graduation rate under this sec- 4 tion, a Federal Pell Grant recipient shall be 5 counted as a completor or graduate if, within 6 the normal time for completion of or graduation 7 from the program, the student has completed or 8 graduated from the program, or enrolled in any 9 program of an institution participating in any 10 program under this title for which the prior 11 program provides substantial preparation. 12 ‘‘(D) purposes of determining the com- REALLOCATION OF RETURNED 13 AMOUNT.—If 14 retary any portion of the sums allocated to such 15 institution under this paragraph for any fiscal 16 year, the Secretary shall reallot such excess to 17 improved institutions on the same basis as 18 under subparagraph (A)(ii)(I). 19 ‘‘(2) RESERVATION an institution returns to the Sec- FOR WORK COLLEGES.— 20 From the amounts appropriated under section 21 441(b), the Secretary shall reserve to carry out sec- 22 tion 448 such amounts as may be necessary for fis- 23 cal year 2019 and each of the 5 succeeding fiscal 24 years. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RATE OR GRADUATION 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00230 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 231 1 ‘‘(b) ALLOCATION FORMULA FOR FISCAL YEARS 2 2019 THROUGH 2023.— 3 ‘‘(1) IN the amount appro- 4 priated under section 441(b) for a fiscal year and re- 5 maining after the Secretary reserves funds under 6 subsection (a), the Secretary shall allocate to each 7 institution— 8 ‘‘(A) for fiscal year 2019, an amount equal 9 to the greater of— 10 ‘‘(i) 90 percent of the amount the in- 11 stitution received under this subsection 12 and subsection (a) for fiscal year 2018, as 13 such subsections were in effect with re- 14 spect to such fiscal year (in this subpara- 15 graph referred to as the ‘2018 amount for 16 the institution’); or 17 ‘‘(ii) the fair share amount for the in- 18 stitution determined under subsection (d); 19 ‘‘(B) for fiscal year 2020, an amount equal 20 to the greater of— 21 ‘‘(i) 80 percent of the 2018 amount 22 for the institution; or 23 ‘‘(ii) the fair share amount for the in- 24 stitution determined under subsection (d); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—From 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00231 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 232 1 ‘‘(C) for fiscal year 2021, an amount equal 2 to the greater of— 3 ‘‘(i) 60 percent of the 2018 amount 4 for the institution; or 5 ‘‘(ii) the fair share amount for the in- 6 stitution determined under subsection (d); 7 ‘‘(D) for fiscal year 2022, an amount equal 8 to the greater of— 9 ‘‘(i) 40 percent of the 2018 amount 10 for the institution; or 11 ‘‘(ii) the fair share amount for the in- 12 stitution determined under subsection (d); 13 and 14 ‘‘(E) for fiscal year 2023, an amount equal 15 to the greater of— 16 ‘‘(i) 20 percent of the 2018 amount 17 for the institution; or 18 ‘‘(ii) the fair share amount for the in- 19 stitution determined under subsection (d). 20 ‘‘(2) RATABLE 21 ‘‘(A) IN GENERAL.—If the amount appro- 22 priated under section 441(b) for a fiscal year 23 and remaining after the Secretary reserves 24 funds under subsection (a) is less than the 25 amount required to be allocated to the institu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REDUCTION.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00232 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 233 1 tions under this subsection, then the amount of 2 the allocation to each institution shall be rat- 3 ably reduced. 4 ‘‘(B) ADDITIONAL APPROPRIATIONS.—If 5 the amounts allocated to each institution are 6 ratably reduced under subparagraph (A) for a 7 fiscal year and additional amounts are appro- 8 priated for such fiscal year, the amount allo- 9 cated to each institution from the additional 10 amounts shall be increased on the same basis as 11 the amounts under subparagraph (A) were re- 12 duced (until each institution receives the 13 amount required to be allocated under this sub- 14 section). 15 16 ‘‘(c) ALLOCATION FORMULA FOR FISCAL YEAR 2024 EACH SUCCEEDING FISCAL YEAR.—From the AND 17 amount appropriated under section 441(b) for fiscal year 18 2024 and each succeeding fiscal year and remaining after 19 the Secretary reserves funds under subsection (a), the Sec20 retary shall allocate to each institution the fair share 21 amount for the institution determined under subsection 22 (d). 23 ‘‘(d) DETERMINATION g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 OF FAIR SHARE AMOUNT.— (680541 26) PO 00000 Frm 00233 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 234 1 ‘‘(1) IN fair share amount for 2 an institution for a fiscal year shall be equal to the 3 sum of the following: 4 ‘‘(A) An amount equal to 50 percent of the 5 amount that bears the same proportion to the 6 available appropriated amount for such fiscal 7 year as the total amount of Federal Pell Grant 8 funds disbursed at the institution for the pre- 9 ceding fiscal year bears to the total amount of 10 Federal Pell Grant funds awarded at all institu- 11 tions participating under this part for the pre- 12 ceding fiscal year. 13 ‘‘(B) An amount equal to 50 percent of the 14 amount that bears the same proportion to the 15 available appropriated amount for such fiscal 16 year as the total amount of the undergraduate 17 student need at the institution for the preceding 18 fiscal year bears to the total amount of under- 19 graduate student need at all institutions partici- 20 pating under this part for the preceding fiscal 21 year. 22 ‘‘(2) DEFINITIONS.—In this subsection: 23 ‘‘(A) 24 AMOUNT.—The 25 amount’ means— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 AVAILABLE APPROPRIATED term ‘available appropriated (680541 26) PO 00000 Frm 00234 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 235 1 ‘‘(i) the amount appropriated under 2 section 441(b) for a fiscal year, minus 3 ‘‘(ii) the amounts reserved under sub- 4 section (a) for such fiscal year. 5 ‘‘(B) AVERAGE 6 The term ‘average cost of attendance’ means, 7 with respect to an institution, the average of 8 the attendance costs for a fiscal year for stu- 9 dents which shall include— 10 ‘‘(i) tuition and fees, computed on the 11 basis of information reported by the insti- 12 tution to the Secretary, which shall in- 13 clude— 14 ‘‘(I) total revenue received by the 15 institution from undergraduate tuition 16 and fees for the second year preceding 17 the year for which it is applying for 18 an allocation; and 19 ‘‘(II) the institution’s enrollment 20 for such second preceding year; 21 ‘‘(ii) standard living expenses equal to 22 150 percent of the difference between the 23 income protection allowance for a family of 24 5 with 1 in college and the income protec- 25 tion allowance for a family of 6 with 1 in g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 COST OF ATTENDANCE.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00235 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 236 1 college for a single independent student; 2 and 3 ‘‘(iii) books and supplies, in an 4 amount not exceeding $800. 5 ‘‘(C) UNDERGRADUATE 6 The term ‘undergraduate student need’ means, 7 with respect to an undergraduate student for a 8 fiscal year, the lesser of the following: 9 ‘‘(i) The total of the amount equal to 10 (except the amount computed by this 11 clause shall not be less than zero)— 12 ‘‘(I) the average cost of attend- 13 ance for the fiscal year, minus 14 ‘‘(II) the total amount of each 15 such 16 pected family contribution (computed 17 in accordance with part F of this 18 title) for the preceding fiscal year. 19 ‘‘(ii) $12,500. 20 undergraduate student’s ex- ‘‘(e) RETURN OF SURPLUS ALLOCATED FUNDS.— 21 ‘‘(1) AMOUNT RETURNED.—If an institution re- 22 turns more than 10 percent of its allocation under 23 subsection (d), the institution’s allocation for the 24 next fiscal year shall be reduced by the amount re- 25 turned. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 STUDENT NEED.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00236 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 237 1 ‘‘(2) WAIVER.—The Secretary may waive this 2 paragraph for a specific institution if the Secretary 3 finds that enforcing this paragraph would be con- 4 trary to the interest of the program. 5 ‘‘(f) FILING DEADLINES.—The Secretary shall, from 6 time to time, set dates before which institutions must file 7 applications for allocations under this part.’’. 8 SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS. 9 Section 443 (20 U.S.C. 1087–53) is amended— 10 (1) in subsection (b)— 11 (A) in paragraph (1), in the matter pre- 12 ceding subparagraph (A), by striking ‘‘part- 13 time’’; 14 (B) in paragraph (2), by striking ‘‘except 15 that—’’ and all that follows through ‘‘an insti- 16 tution may use a portion’’ and inserting ‘‘except 17 that an institution may use a portion’’; 18 (C) in paragraph (3), by inserting ‘‘under- 19 graduate’’ after ‘‘only’’; 20 (D) in paragraph (4), by striking ‘‘300’’ 21 and inserting ‘‘500’’; 22 (E) in paragraph (5)— 23 (i) by striking ‘‘shall not exceed 75 24 percent’’ and inserting ‘‘shall not exceed 25 75 percent in the first year after the date g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00237 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 238 1 of the enactment of PROSPER Act, 65 2 percent in the first succeeding fiscal year, 3 60 percent in the second succeeding fiscal 4 year, 55 percent in the third succeeding 5 fiscal year, and 50 percent each succeeding 6 fiscal year’’; 7 (ii) by striking subparagraph (A); 8 (iii) in subparagraph (B)— 9 (I) by striking ‘‘75’’ and insert- 10 ing ‘‘50’’; and 11 (II) by striking the semicolon 12 and inserting ‘‘; and’’; 13 (iv) by redesignating subparagraph 14 (B) as subparagraph (A); and 15 (v) by adding at the end the following: 16 ‘‘(B) the Federal share may equal 100 per- 17 cent with respect to funds received under sec- 18 tion 442(a)(1)(A);’’; 19 (F) in paragraph (8)— 20 (i) in subparagraph (A)(i), by striking 21 ‘‘vocational’’ and inserting ‘‘career’’; and 22 (ii) in subparagraph (B), by striking 23 ‘‘community service’’ and inserting ‘‘work- 24 based learning’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00238 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 239 1 (G) in paragraph (10), by striking ‘‘; and’’ 2 and inserting a semicolon; 3 (H) in paragraph (11), by striking the pe- 4 riod at the end and inserting a semicolon; and 5 (I) by adding at the end the following: 6 ‘‘(12) provide assurances that the institution 7 will collect data from students and employers such 8 that the employment made available from funds 9 under this part will, to the maximum extent prac- 10 ticable, complement and reinforce the educational 11 goals or career goals of each student receiving as- 12 sistance under this part; and 13 ‘‘(13) provide assurances that if the institution 14 receives funds under section 442(a)(1)(A), such in- 15 stitution shall— 16 ‘‘(A) use such funds to compensate stu- 17 dents participating in the work-study program; 18 and 19 ‘‘(B) prioritize the awarding of such funds 20 to students— 21 ‘‘(i) 22 need; or demonstrate exceptional 23 ‘‘(ii) who are employed in work-based 24 learning opportunities through the work- 25 study program.’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 who 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00239 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 240 1 (2) in subsection (c)— 2 (A) in paragraph (1)— 3 (i) by striking ‘‘program of part-time 4 employment’’ and inserting the following: 5 ‘‘program— 6 ‘‘(A) of employment’’; and 7 (ii) by inserting ‘‘or’’ after ‘‘sub- 8 section (b)(3);’’; and 9 (iii) by adding at the end the fol- 10 lowing: 11 ‘‘(B) of full-time employment of its cooper- 12 ative education students in work for a private 13 for-profit organization under an arrangement 14 between the institution and such organization 15 that complies with the requirements of subpara- 16 graphs (A) through (D) of subsection (b)(1) of 17 this section and subsection (b)(4) of this sec- 18 tion;’’; 19 (B) by striking paragraph (2); 20 (C) in paragraph (4), by inserting ‘‘and 21 complement and reinforce the educational goals 22 or career goals of each student receiving assist- 23 ance under this part’’ after ‘‘relevant’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00240 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 241 1 (D) by redesignating paragraphs (3), (4), 2 and (5) as paragraphs (2), (3), and (4), respec- 3 tively; and 4 (3) in subsection (d)— 5 (A) in paragraph (1)— 6 (i) by striking ‘‘In any academic year 7 to which subsection (b)(2)(A) applies, an 8 institution shall ensure that’’ and inserting 9 ‘‘An institution may use the’’ ; and 10 (ii) by striking ‘‘are used’’; and 11 (B) in paragraph (3), by striking ‘‘may ex- 12 ceed 75 percent’’ and inserting ‘‘shall not ex- 13 ceed 50 percent’’. 14 SEC. 444. FLEXIBLE USE OF FUNDS. 15 Section 445(a) (20 U.S.C. 1087–55(a)) is amended— 16 (1) in paragraph (2), by striking ‘‘in the same 17 State’’ and inserting ‘‘described under section 18 442(a)(1)(B)’’; and 19 (2) by adding at the end the following new 20 paragraph: 21 ‘‘(3) In addition to the carry-over sums authorized 22 under paragraph (1) of this section, an institution may 23 permit a student who completed the previous award period 24 to continue to earn unearned portions of the student’s 25 work-study award from that previous year if— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00241 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 242 1 ‘‘(A) any reduction in the student’s need upon 2 which the award was based is accounted for in the 3 remaining portion; and 4 ‘‘(B) the student is currently employed in a 5 work-based learning position.’’. 6 SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS. 7 Section 446 (20 U.S.C. 1087–56) is amended— 8 (1) in subsection (a)— 9 (A) in paragraph (1)— 10 (i) striking ‘‘10 percent or 11 $75,000’’ and inserting ‘‘20 percent or 12 $150,000’’; and 13 (ii) by striking ‘‘, including commu- 14 nity service jobs,’’; and 15 (B) in paragraph (2), by striking ‘‘voca- 16 tional’’ and inserting ‘‘career’’; and 17 (2) in subsection (b)— 18 (A) by striking paragraph (2); 19 (B) by redesignating paragraphs (3) 20 through (6) as paragraphs (4) through (7), re- 21 spectively; and 22 (C) by inserting before paragraph (4) the 23 following: 24 ‘‘(2) provide satisfactory assurance that the in- 25 stitution will prioritize placing students with the low- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 by 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00242 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 243 1 est expected family contribution and Federal work- 2 study recipients in jobs located and developed under 3 this section; 4 ‘‘(3) provide a satisfactory assurance that the 5 institution will locate and develop work-based learn- 6 ing opportunities through the job location develop- 7 ment programs;’’; and 8 (D) in paragraph (7), by striking the pe- 9 riod and inserting ‘‘, including— 10 ‘‘(A) the number of students employed in 11 work-based learning opportunities through such 12 program; 13 ‘‘(B) number of students dem- 14 onstrating exceptional need and employed in a 15 work-study program through such program; and 16 ‘‘(C) the number of students dem- 17 onstrating exceptional need and employed in 18 work-based learning opportunities through such 19 program.’’. 20 SEC. 446. COMMUNITY SERVICE. 21 22 Section 447 (20 U.S.C. 1087–57) is repealed. SEC. 447. WORK COLLEGES. 23 Section 448 (20 U.S.C. 1087–58) is amended— 24 (1) in subsection (b)— 25 (A) in paragraph (1)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 the 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00243 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 244 1 (i) by striking ‘‘and part E’’; and 2 (ii) by striking ‘‘appropriated’’ and in- 3 serting ‘‘allocated’’; 4 (B) in paragraph (2), by striking ‘‘appro- 5 priated pursuant to’’ and inserting ‘‘allocated 6 under’’; and 7 (2) in subsection (c), by striking ‘‘authorized 8 by’’ and inserting ‘‘allocated under’’; 9 (3) in subsection (e)(1)— 10 (A) in subparagraph (C), by striking ‘‘; 11 and’’ and inserting a semicolon; and 12 (B) by adding at the end the following: 13 ‘‘(E) has administered Federal work-study 14 for at least 2 years; and’’; and 15 (4) by amending subsection (f) to read as fol- 16 lows: 17 ‘‘(f) ALLOCATION OF RESERVED FUNDS.— 18 ‘‘(1) IN to paragraph (2), 19 from the amount reserved under section 442(a)(2) 20 for a fiscal year to carry out this section, the Sec- 21 retary shall allocate to each work college that sub- 22 mits an application under subsection (c) an amount 23 equal to the amount that bears the same proportion 24 to the amount appropriated for such fiscal year as 25 the number of students eligible for employment g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Subject 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00244 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 245 1 under a work-study program under this part who 2 are enrolled at the work college bears to the total 3 number of students eligible for employment under a 4 work-study program under this part who are en- 5 rolled at all work colleges. 6 ‘‘(2) REALLOTMENT OF UNMATCHED FUNDS.— 7 If a work college is unable to match funds received 8 under paragraph (1) in accordance with subsection 9 (d), any unmatched funds shall be returned to the 10 Secretary and the Secretary shall reallot such funds 11 on the same basis as funds are allocated under para- 12 graph (1).’’. 13 PART D—FEDERAL DIRECT STUDENT LOAN 14 PROGRAM 15 SEC. 451. TERMINATION OF FEDERAL DIRECT LOAN PRO- 16 GRAM UNDER PART D AND OTHER CON- 17 FORMING AMENDMENTS. 18 (a) APPROPRIATIONS.—Section 451 (20 U.S.C. 19 1087a) is amended— 20 (1) in subsection (a), by adding at the end the 21 following: ‘‘No sums may be expended after Sep- 22 tember 30, 2024, with respect to loans under this 23 part for which the first disbursement is after such 24 date.’’; and 25 (2) by adding at the end, the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00245 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 246 1 ‘‘(c) TERMINATION OF AUTHORITY TO MAKE NEW 2 LOANS.—Notwithstanding subsection (a) or any other 3 provision of law— 4 5 ‘‘(1) no new loans may be made under this part after September 30, 2024; and 6 ‘‘(2) no funds are authorized to be appro- 7 priated, or may be expended, under this Act, or any 8 other Act to make loans under this part for which 9 the first disbursement is after September 30, 2024, 10 except as expressly authorized by an Act of Congress en11 acted after the date of enactment of the PROSPER Act. 12 ‘‘(d) STUDENT ELIGIBILITY BEGINNING WITH 13 AWARD YEAR 2019.— 14 ‘‘(1) NEW loan may be made 15 under this part to a new borrower for which the first 16 disbursement is after June 30, 2019. 17 ‘‘(2) BORROWERS WITH OUTSTANDING BAL- 18 ANCES.—Subject 19 borrower who, as of July 1, 2019, has an out- 20 standing balance of principal or interest owing on a 21 loan made under this part, such borrower may— to paragraph (3), with respect to a 22 ‘‘(A) in the case of such a loan made to 23 the borrower for enrollment in a program of un- 24 dergraduate education, borrow loans made 25 under this part for any program of under- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BORROWERS.—No 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00246 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 247 1 graduate education through the close of Sep- 2 tember 30, 2024; 3 ‘‘(B) in the case of such a loan made to 4 the borrower for enrollment in a program of 5 graduate or professional education, borrow 6 loans made under this part for any program of 7 graduate or professional education through the 8 close of September 30, 2024; and 9 ‘‘(C) in the case of such a loan made to 10 the borrower on behalf of a dependent student 11 for the student’s enrollment in a program of 12 undergraduate education, borrow loans made 13 under this part on behalf of such student 14 through the close of September 30, 2024. 15 ‘‘(3) LOSS OF ELIGIBILITY.—A borrower de- 16 scribed in paragraph (2) who borrows a loan made 17 under part E for which the first disbursement is 18 made on or after July 1, 2019, shall lose the bor- 19 rower’s eligibility to borrow loans made under this 20 part in accordance with paragraph (2).’’. 21 (b) PERKINS LOAN CONFORMING AMENDMENT.— 22 Section 453(c)(2)(A) (20 U.S.C. 1087c(c)(2)(A)) is 23 amended by inserting ‘‘, as in effect on the day before 24 the date of enactment of the PROSPER Act and pursuant 25 to subsection 461(a),’’ after ‘‘part E’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00247 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 248 1 (c) APPLICABLE INTEREST RATES 2 TERMS AND OTHER CONDITIONS.—Section 455 (20 U.S.C. AND 3 1087e) is amended— 4 (1) in subsection (a)— 5 (A) in paragraph (1), by inserting ‘‘, and 6 first disbursed before October 1, 2024,’’ after 7 ‘‘under this part’’; 8 (B) in paragraph (2), by inserting ‘‘, and 9 first disbursed before October 1, 2024,’’ after 10 ‘‘under this part’’; 11 (2) in subsection (b)(8)— 12 (A) in the section heading, by inserting 13 ‘‘AND after ‘‘2013’’; 14 (B) in subparagraph (A), by inserting 15 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 16 2013,’’; 17 (C) in subparagraph (B), by inserting 18 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 19 2013,’’; 20 (D) in subparagraph (C), by inserting 21 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 22 2013,’’; and 23 (E) in subparagraph (D), by inserting 24 ‘‘and before October 1, 2024,’’ after ‘‘July 1, 25 2013,’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BEFORE OCTOBER 1, 2024’’ 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00248 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 249 1 2 (3) in subsection (c)(2)(E), by inserting ‘‘, and before October 1, 2024’’ after ‘‘July 1, 2010’’; 3 (4) in subsection (e)(7), in the matter preceding 4 subparagraph (A), by inserting ‘‘, as in effect on the 5 day before the date of enactment of the PROSPER 6 Act and pursuant to subsection 461(a)’’ after ‘‘part 7 E’’; and 8 (5) in subsection (g)— 9 (A) by inserting ‘‘, and first disbursed be- 10 fore October 1, 2024,’’ after ‘‘under this part’’; 11 and 12 (B) by adding at the end the following: 13 ‘‘The authority to make consolidation loans 14 under this subsection expires at the close of 15 September 30, 2024. No loan may be made 16 under this subsection for which the disburse- 17 ment is on or after October 1, 2024.’’; and 18 (6) in subsection (o)— 19 (A) in paragraph (1), by inserting ‘‘, and 20 before October 1, 2024,’’ after ‘‘October 1, 21 2008’’; and 22 (B) in paragraph (2)— 23 (i) by inserting ‘‘and before October 24 1, 2024,’’ after ‘‘October 1, 2008,’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00249 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 250 1 (ii) by inserting ‘‘, and before October 2 3 1, 2024’’ after ‘‘October 1, 2008’’. SEC. 452. BORROWER DEFENSES. 4 Section 455(h) (20 U.S.C. 1087e(h)) is amended to 5 read as follows: 6 ‘‘(h) BORROWER DEFENSES.— 7 ‘‘(1) IN any proceeding to collect 8 on a loan made under this part to a borrower, the 9 Secretary shall abide by the following: 10 ‘‘(A) In no event may the borrower recover 11 any amount previously collected or be freed of 12 amounts owed to the Secretary without submit- 13 ting an individually-filed application for ap- 14 proval. 15 ‘‘(B) In no event may the borrower recover 16 amounts previously collected by the Secretary, 17 in any action arising from or relating to a loan 18 made under this part, in an amount in excess 19 of the amount that has been paid by the bor- 20 rower on such loan. 21 ‘‘(C) In no event may the borrower recover 22 amounts previously collected by the Secretary 23 later than 3 years after the misconduct or 24 breach of contract on behalf of the institution g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00250 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 251 1 takes place that gives rise to the borrower to 2 assert a defense to repayment of the loan. 3 ‘‘(D) In no event may anyone other than 4 an administrative law judge or its equivalent 5 preside over hearings of any kind related to ap- 6 plications submitted under this subsection. 7 ‘‘(E) In no event may the Secretary ap- 8 prove or disapprove the borrower’s application 9 under this subsection without allowing for the 10 equal consideration of evidence and arguments 11 presented by a representative on behalf of the 12 student or students and a representative on be- 13 half of the institution, if either such party 14 makes a request. 15 ‘‘(F) In no event may the Secretary with- 16 hold from an institution any materials, facts, or 17 evidence used when processing an application 18 submitted by the borrower. 19 ‘‘(G) In no event may the borrower of a 20 loan made, insured or guaranteed under this 21 title (other than a loan made under this part or 22 a Federal ONE Loan) submit an application 23 under this subsection without consolidating the 24 loans of the borrower into a Federal ONE Con- 25 solidation Loan. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00251 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 252 1 2 ‘‘(2) APPLICATION REQUIRE- MENTS.— 3 ‘‘(A) IN GENERAL.—An application sub- 4 mitted by a borrower under this subsection to 5 the Secretary shall— 6 ‘‘(i) certify the borrower’s receipt of 7 loan proceeds, in whole or in part, to at- 8 tend the named institution of higher edu- 9 cation; 10 ‘‘(ii) provide evidence described in 11 subparagraph (B) that supports a bor- 12 rower defense to repayment of the loan; 13 and 14 ‘‘(iii) indicate whether the borrower 15 has made a claim with respect to the infor- 16 mation underlying the borrower defense 17 with any third party and, if so, the amount 18 of any payment received by the borrower 19 or credited to the borrower’s loan obliga- 20 tion. 21 ‘‘(B) EVIDENCE.—The borrower has a bor- 22 rower defense if— 23 ‘‘(i) the borrower, whether as an indi- 24 vidual or as a member of a class, or a gov- 25 ernmental agency, has obtained against the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BORROWER 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00252 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 253 1 institution of higher education a non- 2 default, 3 based on State or Federal law in a court 4 or administrative tribunal of competent ju- 5 risdiction; contested judgment 6 ‘‘(ii) the institution of higher edu- 7 cation for which the borrower received the 8 loan made under this part failed to per- 9 form its obligations under the terms of a 10 contract with the student; or 11 ‘‘(iii) the institution of higher edu- 12 cation described in clause (ii) or any of its 13 representatives engaged directly in mar- 14 keting, recruitment or admissions activi- 15 ties, or any other institution of higher edu- 16 cation, organization, or person with whom 17 such institution has an agreement to pro- 18 vide educational programs, or to provide 19 marketing, advertising, recruiting, or ad- 20 missions services, made a substantial mis- 21 representation within the meaning of sec- 22 tion 487(c)(3)(B)(i)(II) that the borrower 23 reasonably relied on when the borrower de- 24 cided to attend, or to continue attending, 25 such institution. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 favorable 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00253 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 254 1 2 ‘‘(3) SECRETARIAL REQUIRE- MENTS.— 3 ‘‘(A) RECEIPT OF APPLICATION.—Upon 4 receipt of a borrower’s application, the Sec- 5 retary— 6 ‘‘(i) if the borrower is not in default 7 on the loan for which a borrower defense 8 has been asserted, shall grant a forbear- 9 ance and notify the borrower of the option 10 to decline the forbearance and to continue 11 making payments on the loan; 12 ‘‘(ii) if the borrower is in default on 13 the loan for which a borrower defense has 14 been asserted— 15 ‘‘(I) shall suspend collection ac- 16 tivity on the loan until the Secretary 17 issues a decision on the borrower’s 18 claim; 19 ‘‘(II) shall notify the borrower of 20 the suspension of collection activity 21 and explain that collection activity will 22 resume if the Secretary determines 23 that the borrower does not qualify for 24 a full discharge; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 NOTIFICATION 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00254 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 255 1 ‘‘(III) shall notify the borrower 2 of the option to continue making pay- 3 ments under a rehabilitation agree- 4 ment or other repayment agreement 5 on the defaulted loan; and 6 ‘‘(iii) shall to the extent possible, no- 7 tify the institutions against which the ap- 8 plication is filed, which notification shall 9 include— 10 ‘‘(I) the reasons that the applica- 11 tion has been filed; and 12 ‘‘(II) the amount of relief re- 13 quested. 14 ‘‘(B) APPROVED a bor- 15 rower’s application is approved in full or in 16 part, the Secretary shall— 17 ‘‘(i) notify the borrower and the insti- 18 tution in writing of that determination and 19 of the relief provided; and 20 ‘‘(ii) inform the institution of the op- 21 portunity to request a one-time reconsider- 22 ation of the claim in the application if new 23 evidence that was not previously provided 24 can be identified. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 APPLICATION.—If 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00255 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 256 1 ‘‘(D) APPLICATION a 2 borrower’s application is not approved in full or 3 in part, the Secretary— 4 ‘‘(i) shall notify the borrower and the 5 institution of the reasons for the denial, 6 the evidence that was relied upon, any por- 7 tion of the loan that is due and payable to 8 the Secretary, whether the Secretary will 9 reimburse any amounts previously col- 10 lected, and inform the borrower that the 11 loan will return to its status prior to the 12 borrower’s submission of the application; 13 and 14 ‘‘(ii) shall inform the borrower of the 15 opportunity to request a one-time reconsid- 16 eration of the claim in the application if 17 new evidence that was not previously pro- 18 vided can be identified. 19 ‘‘(E) CONSOLIDATION.—During a pro- 20 ceeding for an individual borrower, the Sec- 21 retary may consolidate individually-filed appli- 22 cations that have common facts and claims and 23 resolve the borrowers’ borrower defense claims 24 for faster processing. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 NOT APPROVED.—If 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00256 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 257 1 ‘‘(F) NEW pur- 2 poses of this paragraph, the term ‘new evidence’ 3 means relevant evidence that the borrower or 4 the institution did not previously provide and 5 that was not identified in the final decision as 6 evidence that was relied upon for the final deci- 7 sion. If accepted for reconsideration by the Sec- 8 retary, the Secretary shall follow the procedure 9 under this paragraph. 10 ‘‘(4) CALCULATION OF RELIEF.—The Secretary 11 shall determine the appropriate method for calcu- 12 lating the amount of relief to be awarded to a bor- 13 rower as a result of a proceeding described in this 14 subsection based on the materials, facts, and evi- 15 dence presented during the proceeding. 16 ‘‘(5) FURTHER RELIEF.—The Secretary may 17 afford the borrower such further relief as the Sec- 18 retary determines is appropriate under the cir- 19 cumstances, but which shall not exceed the fol- 20 lowing: 21 ‘‘(A) Reimbursing the borrower for 22 amounts paid toward the loan voluntarily or 23 through enforced collection. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EVIDENCE DEFINED.—For 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00257 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 258 1 ‘‘(B) Restoring eligibility for assistance 2 under this title after determining that the bor- 3 rower is not in default on the loan. 4 ‘‘(C) Updating reports to consumer report- 5 ing agencies to which the Secretary previously 6 made adverse credit reports with regard to a 7 loan made under this part. 8 ‘‘(6) RECOVERY.— 9 ‘‘(A) IN Secretary may 10 initiate an appropriate proceeding to require the 11 institution of higher education whose act or 12 omission resulted in the borrower’s successful 13 defense against repayment of a loan made 14 under this part to pay to the Secretary the 15 amount of the loan to which the defense applies 16 not later than 3 years from the end of the last 17 award year in which the student attended the 18 institution. 19 ‘‘(B) NOTICE.—The Secretary may initiate 20 a proceeding to collect at any time if the insti- 21 tution received notice of the claim before the 22 end of the later of the periods described in sub- 23 paragraph (A). For purposes of this subpara- 24 graph, notice includes receipt of— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00258 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 259 1 ‘‘(i) actual notice from the borrower, 2 from a representative of the borrower, or 3 from the Department; 4 ‘‘(ii) a class action complaint assert- 5 ing relief for a class that may include the 6 borrower; or 7 ‘‘(iii) written notice, including a civil 8 investigative demand or other written de- 9 mand for information, from a Federal or 10 State agency that has power to initiate an 11 investigation into conduct of the institution 12 of higher education relating to specific pro- 13 grams, periods, or practices that may have 14 affected the borrower.’’. 15 SEC. 453. ADMINISTRATIVE EXPENSES. 16 Section 458(a) (20 U.S.C. 1087h)— 17 (1) in paragraph (3)— 18 (A) by striking ‘‘2007’’ each place it ap- 19 pears and inserting ‘‘2019’’; 20 (B) by striking ‘‘2014’’ each place it ap- 21 pears and inserting ‘‘2024’’; and 22 (C) by striking ‘‘part and part B, including 23 the costs of the direct student loan programs 24 under this part’’ and inserting ‘‘title’’; 25 (2) in paragraph (6)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00259 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 260 1 (A) in subparagraph (B), by striking 2 ‘‘2010’’ and inserting ‘‘2019’’; and 3 (B) in subparagraph (C), by striking 4 ‘‘training’’ and inserting ‘‘education’’; 5 (3) by striking paragraph (7); and 6 (4) by redesignating paragraph (8) as para- 7 8 graph (7). SEC. 454. LOAN CANCELLATION FOR TEACHERS. 9 Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is 10 amended by striking ‘‘that qualifies under section 11 465(a)(2)(A) for loan cancellation for Perkins loan recipi12 ents who teach in such schools or locations’’ and inserting 13 ‘‘described in section 420N(b)(1)(B)’’. 14 PART E—FEDERAL ONE LOANS 15 SEC. 461. WIND-DOWN OF FEDERAL PERKINS LOAN PRO- 16 17 GRAM. (a) IN GENERAL.—Except as otherwise provided in 18 this section and notwithstanding section 462, the provi19 sions of part E of title IV of the Higher Education Act 20 of 1965 (20 U.S.C. 1087aa et seq.), as in effect on the 21 day before the date of enactment of this Act, are deemed 22 to be incorporated in this subsection as though set forth 23 fully in this subsection, and shall have the same force and 24 effect as on such day. 25 (b) CLOSE-OUT AUDITS.— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00260 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 261 1 (1) IN the case of an institution 2 of higher education that desires to have a final audit 3 of its participation under the program under part E 4 of title IV of the Higher Education Act of 1965 (20 5 U.S.C. 1087aa et seq.), as in effect pursuant to sub- 6 section (a), at the same time as its annual financial 7 and compliance audit under section 487(c) of such 8 Act (20 U.S.C. 1094(c)), such institution shall sub- 9 mit to the Secretary a request, in writing, for such 10 an arrangement not later than 60 days after the in- 11 stitution terminates its participation under such pro- 12 gram. 13 (2) TERMINATION OF PARTICIPATION.—For 14 purposes of this subsection, an institution shall be 15 considered to have terminated its participation under 16 the program described in paragraph (1), if the insti- 17 tution— 18 (A)(i) has made a determination not to 19 service and collect student loans made available 20 from funds under part E of title IV of the 21 Higher Education Act of 1965 (20 U.S.C. 22 1087aa et seq.), as in effect pursuant to sub- 23 section (a); or 24 (ii) has completed the servicing and collec- 25 tion of such student loans; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00261 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 262 1 (B) has completed the asset distribution 2 required under section 466(b) of the Higher 3 Education Act of 1965 (20 U.S.C. 1087ff(b)), 4 as in effect pursuant to subsection (a). 5 6 (c) COLLECTION DENT OF INTEREST ON CERTAIN STU- LOANS.—In the case of an institution of higher edu- 7 cation that, on or after October 1, 2006, loaned an 8 amount to its student loan fund established under part 9 E of title IV of the Higher Education Act of 1965 (20 10 U.S.C. 1087aa et seq.), as in effect pursuant to subsection 11 (a), for the purpose of making student loans from such 12 fund, and that, before the date of enactment of this Act, 13 has repaid to itself the amount loaned to such student loan 14 fund, the institution shall collect any interest earned on 15 such student loans. 16 (d) ASSIGNMENT OF LOANS TO SECRETARY.—Not- 17 withstanding the requirements of section 463(a)(5) of the 18 Higher Education Act of 1965 (20 U.S.C. 1087cc(a)(5)), 19 as in effect pursuant to subsection (a), if an institution 20 of higher education determines not to service and collect 21 student loans made available from funds under part E of 22 such Act (20 U.S.C. 1087aa et seq.), as so in effect— 23 (1) the institution shall assign, during the re- 24 payment period, any notes or evidence of obligations g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00262 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 263 1 of student loans made from such funds to the Sec- 2 retary; and 3 (2) the Secretary shall deposit any sums col- 4 lected on such notes or obligations (less an amount 5 not to exceed 30 percent of any such sums collected 6 to cover that Secretary’s collection costs) into the 7 Treasury of the United States. 8 (e) CLOSED SCHOOL DISCHARGE.—The amendments 9 made by section 427 to section 437(c) of the Higher Edu10 cation Act of 1965 (20 U.S.C. 1087), relating to closed 11 school discharge, shall apply with respect to any loans dis12 charged on or after the date of enactment of this Act 13 under section 464(g) of such Act (20 U.S.C. 10877dd(g)), 14 as in effect pursuant to subsection (a)). 15 SEC. 462. FEDERAL ONE LOAN PROGRAM. 16 Part E of title IV (20 U.S.C. 1087aa et seq.) is 17 amended to read as follows: 18 ‘‘SEC. 461. PROGRAM AUTHORITY. 19 ‘‘(a) IN GENERAL.—There are hereby made available, 20 in accordance with the provisions of this part, such sums 21 as may be necessary to make loans to all eligible students 22 (and the eligible parents of such students) in attendance 23 at participating institutions of higher education selected 24 by the Secretary to enable such students to pursue their 25 courses of study at such institutions during the period be- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00263 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 264 1 ginning July 1, 2019. Loans made under this part shall 2 be made by participating institutions that have agree3 ments with the Secretary to originate loans. 4 ‘‘(b) DESIGNATION.—The program established under 5 this part shall be referred to as the ‘Federal ONE Loan 6 Program’. 7 ‘‘(c) ONE LOANS.—Except as otherwise specified in 8 this part, loans made to borrowers under this part shall 9 be known as ‘Federal ONE Loans’. 10 ‘‘SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS. 11 ‘‘(a) IN GENERAL.—The Secretary shall provide, on 12 the basis of eligibility of students at each participating in13 stitution, and parents of such students, for such loans, 14 funds for student and Parent Loans under this part di15 rectly to an institution of higher education that has an 16 agreement with the Secretary under section 464(a) to par17 ticipate in the Federal ONE Loan Program under this 18 part and that also has an agreement with the Secretary 19 under section 464(b) to originate loans under this part. 20 ‘‘(b) PARALLEL TERMS.—Subsections (b), (c), and 21 (d) of section 452 shall apply to the loan program under 22 this part in the same manner that such subsections apply 23 to the loan program under part D. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00264 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 265 1 ‘‘SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPA- 2 TION AND ORIGINATION. 3 ‘‘(a) GENERAL AUTHORITY.—The Secretary shall 4 enter into agreements pursuant to section 464(a) with in5 stitutions of higher education to participate in the Federal 6 ONE Loan Program under this part, and agreements pur7 suant to section 464(b) with institutions of higher edu8 cation, to originate loans in such program, for academic 9 years beginning on or after July 1, 2019. Such agreements 10 for the academic year 2019–2020 shall, to the extent fea11 sible, be entered into not later than January 1, 2019. 12 ‘‘(b) SELECTION CRITERIA AND PROCEDURE.—The 13 application and selection procedure for an institution of 14 higher education desiring to participate in the loan pro15 gram under this part shall be the application and selection 16 procedure described in section 453(b) for an institution 17 of higher education desiring to participate in the loan pro18 gram under part D. 19 ‘‘(c) ELIGIBLE INSTITUTIONS.—The Secretary may 20 not select an institution of higher education for participa21 tion under this part unless such institution is an eligible 22 institution under section 487(a). 23 ‘‘SEC. 464. AGREEMENTS WITH INSTITUTIONS. 24 ‘‘(a) PARTICIPATION AGREEMENTS.—An agreement 25 with any institution of higher education for participation g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00265 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 266 1 in the Federal ONE Loan Program under this part 2 shall— 3 ‘‘(1) provide for the establishment and mainte- 4 nance of a direct student loan program at the insti- 5 tution under which the institution will— 6 ‘‘(A) identify eligible students who seek 7 student financial assistance at such institution 8 in accordance with section 484; 9 ‘‘(B) provide a statement that certifies the 10 eligibility of any student to receive a loan under 11 this part that is not in excess of the annual or 12 aggregate limit applicable to such loan, except 13 that the institution may, in exceptional cir- 14 cumstances identified by the Secretary pursuant 15 to section 454(a)(1)(C), refuse to certify a 16 statement that permits a student to receive a 17 loan under this part, if the reason for such ac- 18 tion is documented and provided in written 19 form to such student; 20 ‘‘(C) set forth a schedule for disbursement 21 of the proceeds of the loan in installments, con- 22 sistent with the requirements of section 465(a); 23 and 24 ‘‘(D) provide timely and accurate informa- 25 tion, concerning the status of student borrowers g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00266 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 267 1 (and students on whose behalf parents borrow 2 under this part) while such students are in at- 3 tendance at the institution and concerning any 4 new information of which the institution be- 5 comes aware for such students (or their par- 6 ents) after such borrowers leave the institution, 7 to the Secretary for the servicing and collecting 8 of loans made under this part; 9 ‘‘(2) provide assurances that the institution will 10 comply with requirements established by the Sec- 11 retary relating to student loan information with re- 12 spect to loans made under this part; 13 ‘‘(3) provide that the institution accepts respon- 14 sibility and financial liability stemming from its fail- 15 ure to perform its functions pursuant to the agree- 16 ment; 17 ‘‘(4) provide for the implementation of a quality 18 assurance system, as established by the Secretary 19 and developed in consultation with institutions of 20 higher education, to ensure that the institution is 21 complying with program requirements and meeting 22 program objectives; and 23 ‘‘(5) provide that the institution will not charge 24 any fees of any kind, however described, to student 25 or parent borrowers for origination activities or the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00267 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 268 1 provision of any information necessary for a student 2 or parent to receive a loan under this part, or any 3 benefits associated with such loan. 4 ‘‘(b) ORIGINATION.—An agreement with any institu- 5 tion of higher education for the origination of loans under 6 this part shall— 7 8 ‘‘(1) supplement the agreement entered into in accordance with subsection (a); 9 ‘‘(2) include provisions established by the Sec- 10 retary that are similar to the participation agree- 11 ment provisions described in paragraphs (2), (3), 12 (4), and (5) of subsection (a), as modified to relate 13 to the origination of loans by the institution; 14 ‘‘(3) provide that the institution will originate 15 loans to eligible students and parents in accordance 16 with this part; and 17 ‘‘(4) provide that the note or evidence of obliga- 18 tion on the loan shall be the property of the Sec- 19 retary. 20 ‘‘(c) WITHDRAWAL PROCEDURES.— 21 ‘‘(1) IN institution of higher 22 education participating in the Federal ONE Loan 23 Program under this part may withdraw from the 24 program by providing written notice to the Secretary g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—An 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00268 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 269 1 of the intent to withdraw not less than 60 days be- 2 fore the intended date of withdrawal. 3 ‘‘(2) DATE in cases 4 in which the Secretary and an institution of higher 5 education agree to an earlier date, the date of with- 6 drawal from the Federal ONE Loan Program under 7 this part of an institution of higher education shall 8 be the later of— 9 ‘‘(A) 60 days after the institution submits 10 the notice required under paragraph (1); or 11 ‘‘(B) a date designated by the institution. 12 ‘‘SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIM- 13 ITS, INTEREST RATES, AND LOAN FEES. 14 15 ‘‘(a) REQUIREMENTS DENT FOR DISBURSEMENT OF STU- LOANS.— 16 ‘‘(1) MULTIPLE 17 DISBURSEMENT REQUIRED.— ‘‘(A) REQUIRED DISBURSEMENTS.—The 18 proceeds of any loan made under this part that 19 is made for any period of enrollment shall be 20 disbursed as follows: 21 ‘‘(i) The disbursement of the first in- 22 stallment of proceeds shall, with respect to 23 any student other than a student described 24 in subparagraph (B)(i), be made not more 25 than 30 days prior to the beginning of the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF WITHDRAWAL.—Except 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00269 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 270 1 period of enrollment, and not later than 30 2 days after the beginning of such period of 3 enrollment. 4 ‘‘(ii) The disbursement of an install- 5 ment of proceeds shall be made in substan- 6 tially equal monthly or weekly installments 7 over the period of enrollment for which the 8 loan was made, except that installments 9 may be unequal as necessary to permit the 10 institution to adjust for unequal costs 11 (which may include upfront costs such as 12 tuition and fees) incurred or estimated fi- 13 nancial assistance received by the student. 14 ‘‘(B) FIRST 15 ‘‘(i) IN GENERAL.—The first install- 16 ment of the proceeds of any loan made 17 under this part that is made to a student 18 borrower who is entering the first year of 19 a program of undergraduate education, 20 and who has not previously obtained a loan 21 under this part, shall not (regardless of the 22 amount of such loan or the duration of the 23 period of enrollment) be presented by the 24 institution of higher education to the stu- 25 dent for endorsement until 30 days after g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 YEAR STUDENTS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00270 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 271 1 the borrower begins a course of study, but 2 may be delivered to the eligible institution 3 prior to the end of that 30-day period. 4 ‘‘(ii) EXEMPTION.—An institution of 5 higher education in which each educational 6 program has a loan repayment rate (as de- 7 termined under section 481B(c)) for the 8 most recent fiscal year for which data are 9 available that is greater than 60 percent 10 shall be exempt from the requirements of 11 clause (i). 12 13 ‘‘(2) WITHDRAWING SUCCEEDING DIS- STUDENTS.—In the BURSEMENTS.— 14 ‘‘(A) WITHDRAWING 15 case in which the Secretary is informed by the 16 borrower or the institution that the borrower 17 has ceased to be enrolled before the disburse- 18 ment of the second or any succeeding install- 19 ment, the Secretary shall withhold such dis- 20 bursement. Any disbursement which is so with- 21 held shall be credited to the borrower’s loan and 22 treated as a prepayment on the principal of the 23 loan. 24 ‘‘(B) 25 08:59 Dec 01, 2017 STUDENTS AWARDS.—If g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF Jkt 000000 RECEIVING OVER- the sum of a disbursement for any (680541 26) PO 00000 Frm 00271 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 272 1 borrower and the other financial aid obtained 2 by borrower exceeds the amount of assistance 3 for which the borrower is eligible under this 4 title, the institution the borrower, or dependent 5 student, in the case of a parent borrower, is at- 6 tending shall withhold and return to the Sec- 7 retary the portion (or all) of such installment 8 that exceeds such eligible amount, except that 9 overawards pursuant to section 10 443(b)(4) shall not be construed to be over- 11 awards for purposes of this subparagraph. Any 12 portion (or all) of a disbursement installment 13 which is so returned shall be credited to the 14 borrower’s loan and treated as a prepayment on 15 the principal of the loan. 16 ‘‘(3) EXCLUSION OF CONSOLIDATION AND FOR- 17 EIGN STUDY LOANS.—The 18 section shall not apply in the case of a Federal ONE 19 Consolidation Loan, or a loan made to a student to 20 cover the cost of attendance in a program of study 21 abroad approved by the home eligible institution if 22 each of the educational programs of such home eligi- 23 ble institution has a loan repayment rate (as cal- 24 culated under section 481B(c)) for the most recent g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 permitted 08:59 Dec 01, 2017 Jkt 000000 provisions of this sub- (680541 26) PO 00000 Frm 00272 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 273 1 fiscal year for which data are available of greater 2 than 70 percent. 3 ‘‘(4) BEGINNING PERIOD OF ENROLL- 4 MENT.—For 5 enrollment begins on the first day that classes begin 6 for the applicable period of enrollment. 7 ‘‘(b) AMOUNT OF LOAN.— 8 9 10 ‘‘(1) IN purposes of this subsection, a period of GENERAL.—The determination of the amount of a loan disbursed by an eligible institution under this section shall be the lesser of— 11 ‘‘(A) an amount that is equal to the esti- 12 mated loan amount, as determined by the insti- 13 tution by calculating— 14 ‘‘(i) the estimated cost of attendance 15 at the institution; minus 16 ‘‘(ii)(I) any estimated financial assist- 17 ance reasonably available to such student, 18 including assistance that the student will 19 receive from a Federal grant, including a 20 Federal Pell Grant, a State grant, an insti- 21 tutional grant, or a scholarship or grant 22 from another source, that is known to the 23 institution at the time the student’s deter- 24 mination of need is made; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00273 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 274 1 ‘‘(II) in the case of a loan to a 2 parent, the amount of a loan awarded 3 under this part to the parent’s child; 4 or 5 ‘‘(B) the maximum Federal loan amount 6 for which such borrower is eligible in accord- 7 ance with paragraph (2). 8 ‘‘(2) LOAN 9 ‘‘(A) ANNUAL LIMITS.—Except as provided 10 under subparagraph (B), (C), or (D), the 11 amount of loans made under this part that an 12 eligible student or parent borrower may borrow 13 for an academic year shall be as follows: 14 ‘‘(i) UNDERGRADUATE STUDENTS.— 15 With respect to enrollment in a program of 16 undergraduate education at an eligible in- 17 stitution— 18 ‘‘(I) in the case of a dependent 19 student— 20 ‘‘(aa) who has not success- 21 fully completed the first year of a 22 program of undergraduate edu- 23 cation, $7,500; 24 ‘‘(bb) who has successfully 25 completed such first year but has g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LIMITS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00274 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 275 1 not successfully completed the re- 2 mainder of a program of under- 3 graduate education, $8,500; and 4 ‘‘(cc) who has successfully 5 completed the first and second 6 years of a program of under- 7 graduate education but has not 8 successfully completed the re- 9 mainder 10 $9,500; 11 ‘‘(II) in the case of an inde- 12 pendent student, or a dependent stu- 13 dent whose parents are unable to bor- 14 row a loan under this part on behalf 15 of such student— such program, 16 ‘‘(aa) who has not success- 17 fully completed the first year of a 18 program of undergraduate edu- 19 cation, $11,500; 20 ‘‘(bb) who has successfully 21 completed such first year but has 22 not successfully completed the re- 23 mainder of a program of under- 24 graduate education, $12,500; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 of 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00275 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 276 1 ‘‘(cc) who has successfully 2 completed the first and second 3 years of a program of under- 4 graduate education but has not 5 successfully completed the re- 6 mainder 7 $14,500; and 8 ‘‘(III) in the case of a student 9 who is enrolled in a program of un- 10 dergraduate education that is less 11 than one academic year, the maximum 12 annual loan amount that such student 13 may receive may not exceed the 14 amount that bears the same ratio to 15 the amount specified in subclause (I) 16 or (II), as applicable, as the length of 17 such program measured in semester, 18 trimester, quarter, or clock hours 19 bears to one academic year. 20 ‘‘(ii) GRADUATE such OR program, PROFESSIONAL 21 STUDENTS.—In 22 professional student for enrollment in a 23 program of graduate or professional edu- 24 cation at an eligible institution, $28,500. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 of 08:59 Dec 01, 2017 Jkt 000000 the case of a graduate or (680541 26) PO 00000 Frm 00276 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 277 1 ‘‘(iii) PARENT the 2 case of a parent borrowing a loan under 3 this part on behalf of a dependent student 4 for the student’s enrollment in a program 5 of undergraduate education at an eligible 6 institution, $12,500 per each such student. 7 ‘‘(iv) COURSEWORK FOR UNDER- 8 GRADUATE 9 to enrollment in coursework specified in 10 section 484(b)(3)(B) necessary for enroll- 11 ment in an undergraduate degree or cer- 12 tificate program— 13 ENROLLMENT.—With respect ‘‘(I) in the case of a dependent 14 student, $2,625; 15 ‘‘(II) in the case of a parent bor- 16 rowing a loan under this part on be- 17 half of a dependent student for the 18 student’s 19 coursework, $6,000; and enrollment in such 20 ‘‘(III) in the case an independent 21 student, or a dependent student whose 22 parents are unable to borrow a loan 23 under this part on behalf of such stu- 24 dent, $8,625. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BORROWERS.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00277 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 278 1 ‘‘(v) COURSEWORK 2 PROFESSIONAL ENROLLMENT OR TEACHER 3 EMPLOYMENT.—With 4 ment of a student who has obtained a bac- 5 calaureate degree in coursework specified 6 in section 484(b)(3)(B) necessary for en- 7 rollment in a graduate or professional de- 8 gree or certificate program, or coursework 9 specified in section 484(b)(4)(B) necessary 10 for a professional credential or certification 11 from a State required for employment as a 12 teacher in an elementary or secondary 13 school, in the case of a student (without 14 regard to whether the student is a depend- 15 ent 16 $12,500. 17 ‘‘(B) AGGREGATE student or respect to the enroll- dependent student), LIMITS.—Except as pro- 18 vided under subparagraph (C), (D), or (E), the 19 maximum aggregate amount of loans under this 20 part and parts B and D that an eligible student 21 or parent borrower may borrow shall be— 22 ‘‘(i) for enrollment in a program of 23 undergraduate education at an eligible in- 24 stitution, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FOR GRADUATE OR 08:59 Dec 01, 2017 Jkt 000000 including for enrollment in (680541 26) PO 00000 Frm 00278 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 279 1 coursework described in clause (iv) or (v) 2 of subparagraph (A)— 3 ‘‘(I) in the case of a dependent 4 student, $39,000; 5 ‘‘(II) in the case of an inde- 6 pendent student, or an dependent stu- 7 dent whose parents are unable to re- 8 ceive a loan under this part on behalf 9 of such student, $60,250; and 10 ‘‘(III) in the case of a parent 11 borrowing a loan under this part on 12 behalf of a dependent student for the 13 student’s enrollment in such a pro- 14 gram, $56,250 per each such student. 15 ‘‘(ii) in the case of a graduate or pro- 16 fessional student for enrollment in a pro- 17 gram of graduate or professional education 18 at an eligible institution, $150,000. 19 ‘‘(C) APPLICATION 20 ROWERS WITH PART B OR D LOANS.— 21 ‘‘(i) GRADUATE OR PROFESSIONAL 22 STUDENTS.—In 23 professional student who is not described 24 in subparagraph (E) and who has received 25 loans made under part B or D for enroll- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF LIMITS TO BOR- 08:59 Dec 01, 2017 Jkt 000000 the case of a graduate or (680541 26) PO 00000 Frm 00279 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 280 1 ment in a graduate or professional pro- 2 gram at an eligible institution, the total 3 amount of which equal or exceed $28,500 4 as of the time of disbursement, the student 5 may continue to borrow the amount of 6 loans under this part necessary to complete 7 such program without regard to the aggre- 8 gate limit under subparagraph (B)(ii), ex- 9 cept that the— 10 ‘‘(I) amount of such loans shall 11 not exceed the annual limits under 12 subparagraph (A)(ii) for any academic 13 year beginning after June 30, 2019; 14 and 15 ‘‘(II) authority to borrow loans in 16 accordance with this subclause shall 17 terminate at the end of the academic 18 year ending before September 30, 19 2024. 20 ‘‘(ii) PARENT the 21 case of a parent borrower who has received 22 loans made under part B or D on behalf 23 of a dependent student for the student’s 24 enrollment in a program of undergraduate 25 education at an eligible institution, the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BORROWERS.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00280 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 281 1 total amount of which equal or exceed 2 $12,500 for such student as of the time of 3 disbursement, the parent borrower may 4 continue to borrow the amount of loans 5 under this part necessary for such student 6 to complete such program without regard 7 to the aggregate limit under subparagraph 8 (B)(i)(III), except that the— 9 ‘‘(I) amount of such loans shall 10 not exceed the annual limits under 11 subparagraph (A)(iii) for any aca- 12 demic year beginning after June 30, 13 2019; and 14 ‘‘(II) the authority to borrow 15 loans in accordance with this sub- 16 clause shall terminate at the end of 17 the academic year ending before Sep- 18 tember 30, 2024. 19 ‘‘(D) INSTITUTIONAL 20 ITS.— 21 ‘‘(i) IN GENERAL.—Notwithstanding 22 any other provision of this subsection, an 23 eligible institution (at the discretion of a 24 financial aid administrator at the institu- 25 tion) may prorate or limit the amount of g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DETERMINED LIM- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00281 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 282 1 a loan any student enrolled in a program 2 of study at that institution may borrow 3 under this part for an academic year— 4 ‘‘(I) if the institution, using the 5 most recently available data from the 6 Bureau of Labor Statistics for the av- 7 erage starting salary in the region in 8 which the institution is located for 9 typical occupations pursued by grad- 10 uates of such program, can reasonably 11 demonstrate that student debt levels 12 are or would be excessive for such 13 program; 14 ‘‘(II) in a case in which the stu- 15 dent is enrolled on a less than full- 16 time basis or the student is enrolled 17 for less than the period of enrollment 18 to which the annual loan limit applies 19 under this subsection, based on the 20 student’s enrollment status; 21 ‘‘(III) based on the credential 22 level (such as a degree, certificate, or 23 other recognized educational creden- 24 tial) that the student would attain 25 upon completion of such program; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00282 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 283 1 ‘‘(IV) based on the year of the 2 program for which the student is 3 seeking such loan. 4 ‘‘(ii) 5 DENTS.—Any 6 amounts under clause (i) shall be applied 7 in the same manner to all students en- 8 rolled in the institution or program of 9 study. 10 TO ALL STU- proration or limiting of loan ‘‘(iii) INCREASES FOR INDIVIDUAL 11 STUDENTS.—Upon 12 dent whose loan amount for an academic 13 year has been prorated or limited under 14 clause (i), an eligible institution (at the 15 discretion of the financial aid adminis- 16 trator at the institution) may increase such 17 loan amount to an amount not exceeding 18 the annual loan amount applicable to such 19 student under this subparagraph for such 20 academic 21 onstrates special circumstances or excep- 22 tional need. 23 ‘‘(E) INCREASES 24 08:59 Dec 01, 2017 year if the request of a stu- such student dem- FOR CERTAIN GRADUATE OR PROFESSIONAL STUDENTS.— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 APPLICATION Jkt 000000 (680541 26) PO 00000 Frm 00283 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 284 1 ‘‘(i) ANNUAL 2 AMOUNTS.—Subject 3 subparagraph, in addition to the loan 4 amount for an academic year described in 5 subparagraph (A)(ii)— to clause (iii) of this 6 ‘‘(I) a graduate or professional 7 student who is enrolled in a program 8 of study to become a doctor of 9 allopathic medicine, doctor of osteo- 10 pathic medicine, doctor of dentistry, 11 doctor of veterinary medicine, doctor 12 of optometry, doctor of podiatric med- 13 icine, doctor of naturopathic medicine, 14 or doctor of naturopathy may borrow 15 an additional— 16 ‘‘(aa) in the case of a pro- 17 gram with a 9-month academic 18 year, $20,000 for an academic 19 year; or 20 ‘‘(bb) in the case of a pro- 21 gram with a 12-month academic 22 year, $26,667 for an academic 23 year; and 24 ‘‘(II) a graduate or professional 25 student who is enrolled in a program g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ADDITIONAL 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00284 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 285 1 of study to become a doctor of phar- 2 macy, doctor of chiropractic medicine, 3 or a physician’s assistant, or receive a 4 graduate degree in public health, doc- 5 toral degree in clinical psychology, or 6 a masters or doctoral degree in health 7 administration may borrow an addi- 8 tional— 9 ‘‘(aa) in the case of a pro- 10 gram with a 9-month academic 11 year, $12,500 for an academic 12 year; or 13 ‘‘(bb) in the case of a pro- 14 gram with a 12-month academic 15 year, $16,667 for an academic 16 year. 17 ‘‘(ii) AGGREGATE to 18 clause (iii) of this subparagraph, the max- 19 imum aggregate amount of loans under 20 this part and parts B and D that a stu- 21 dent described in clause (i) may borrow 22 shall be $235,500. 23 ‘‘(iii) LIMITATION.—In the case of a 24 graduate or professional student described 25 in clause (i) of this subparagraph who has g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LIMIT.—Subject 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00285 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 286 1 received loans made under part B or D for 2 enrollment in a graduate or professional 3 program at an eligible institution, the total 4 amount of which equal or exceed $34,000 5 as of the time of disbursement, the student 6 may continue to borrow the amount of 7 loans under this part necessary to complete 8 such program without regard to the aggre- 9 gate limit under clause (ii) of this subpara- 10 graph, except that the— 11 ‘‘(I) amount of such loans shall 12 not exceed the annual limits under 13 clause (i) of this subparagraph for 14 any academic year beginning after 15 June 30, 2019; and 16 ‘‘(II) authority to borrow loans in 17 accordance with this subclause shall 18 terminate at the end of the academic 19 year ending before September 30, 20 2024. 21 ‘‘(c) INTEREST RATE PROVISIONS FOR FEDERAL 22 ONE LOANS.— 23 ‘‘(1) UNDERGRADUATE Fed- 24 eral ONE Loans issued to undergraduate students, 25 the applicable rate of interest shall, for loans dis- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ONE LOANS.—For 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00286 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 287 1 bursed during any 12-month period beginning on 2 July 1 and ending on June 30, be determined on the 3 preceding June 1 and be equal to the lesser of— 4 ‘‘(A) a rate equal to the high yield of the 5 10-year Treasury note auctioned at the final 6 auction held prior to such June 1 plus 2.05 per- 7 cent; or 8 ‘‘(B) 8.25 percent. 9 ‘‘(2) AND PROFESSIONAL ONE 10 LOANS.—For 11 uate or professional students, the applicable rate of 12 interest shall, for loans disbursed during any 12- 13 month period beginning on July 1 and ending on 14 June 30, be determined on the preceding June 1 15 and be equal to the lesser of— Federal ONE Loans issued to grad- 16 ‘‘(A) a rate equal to the high yield of the 17 10-year Treasury note auctioned at the final 18 auction held prior to such June 1 plus 3.6 per- 19 cent; or 20 ‘‘(B) 9.5 percent. 21 ‘‘(3) PARENT ONE LOANS.—For Federal ONE 22 Parent Loans, the applicable rate of interest shall, 23 for loans disbursed during any 12-month period be- 24 ginning on July 1 and ending on June 30, be deter- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GRADUATE 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00287 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 288 1 mined on the preceding June 1 and be equal to the 2 lesser of— 3 ‘‘(A) a rate equal to the high yield of the 4 10-year Treasury note auctioned at the final 5 auction held prior to such June 1 plus 4.6 per- 6 cent; or 7 ‘‘(B) 10.5 percent. 8 ‘‘(4) CONSOLIDATION Federal 9 ONE Consolidation Loan for which the application 10 is received on or after July 1, 2019, shall bear inter- 11 est at an annual rate on the unpaid principal bal- 12 ance of the loan that is equal to the weighted aver- 13 age of the interest rates on the loans consolidated, 14 rounded to the nearest higher one-eighth of one per- 15 cent. 16 ‘‘(5) PUBLICATION.—The Secretary shall deter- 17 mine the applicable rates of interest under this sub- 18 section after consultation with the Secretary of the 19 Treasury and shall publish such rate in the Federal 20 Register as soon as practicable after the date of de- 21 termination. 22 ‘‘(6) RATE.—The applicable rate of interest de- 23 termined under this subsection for a loan under this 24 part shall be fixed for the period of the loan. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LOANS.—Any 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00288 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 289 1 2 ‘‘(d) PROHIBITION ON TIVES.—Notwithstanding CERTAIN REPAYMENT INCEN- any other provision of this part, 3 the Secretary is prohibited from authorizing or providing 4 any repayment incentive or subsidy not otherwise author5 ized under this part to encourage on-time repayment of 6 a loan under this part, including any reduction in the in7 terest paid by a borrower of such a loan, except that the 8 Secretary may provide for an interest rate reduction of 9 not more than 0.25 percentage points for a borrower who 10 agrees to have payments on such a loan automatically deb11 ited from a bank account. 12 ‘‘(e) LOAN FEE.—The Secretary shall not charge the 13 borrower of a loan made under this part an origination 14 fee. 15 ‘‘(f) ARMED FORCES STUDENT LOAN INTEREST 16 PAYMENT PROGRAM.— 17 ‘‘(1) AUTHORITY.—Using funds received by 18 transfer to the Secretary under section 2174 of title 19 10, United States Code, for the payment of interest 20 on a loan made under this part to a member of the 21 Armed Forces, the Secretary shall pay the interest 22 on the loan as due for a period not in excess of 36 23 consecutive months. The Secretary may not pay in- 24 terest on such a loan out of any funds other than 25 funds that have been so transferred. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00289 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 290 1 ‘‘(2) DEFERMENT.—During the period in which 2 the Secretary is making payments on a loan under 3 paragraph (1), the Secretary shall grant the bor- 4 rower administrative deferment, in the form of a 5 temporary cessation of all payments on the loan 6 other than the payments of interest on the loan that 7 are made under that paragraph. 8 ‘‘(g) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY 9 SERVICE MEMBERS.— 10 ‘‘(1) IN .—Notwithstanding any other 11 provision of this part and in accordance with para- 12 graphs (2) and (4), interest shall not accrue for an 13 eligible military borrower on a loan made under this 14 part. 15 ‘‘(2) CONSOLIDATION LOANS.—In the case of 16 any consolidation loan made under this part, interest 17 shall not accrue pursuant to this subsection only on 18 such portion of such loan as was used to repay a 19 loan made under this part or a loan made under 20 part D for which the first disbursement was made 21 on or after October 1, 2008, and before July 1, 22 2019. 23 ‘‘(3) ELIGIBLE MILITARY BORROWER.—In this 24 subsection, the term ‘eligible military borrower’ 25 means an individual who— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00290 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 291 1 ‘‘(A)(i) is serving on active duty during a 2 war or other military operation or national 3 emergency; or 4 ‘‘(ii) is performing qualifying National 5 Guard duty during a war or other military op- 6 eration or national emergency; and 7 ‘‘(B) is serving in an area of hostilities in 8 which service qualifies for special pay under 9 section 310 of title 37, United States Code. 10 ‘‘(4) LIMITATION.—An individual who qualifies 11 as an eligible military borrower under this sub- 12 section may receive the benefit of this subsection for 13 not more than 60 months. 14 ‘‘SEC. 466. REPAYMENT. 15 16 ‘‘(a) REPAYMENT PERIOD; COMMENCEMENT RE- PAYMENT.— 17 ‘‘(1) REPAYMENT 18 ‘‘(A) IN 19 eral ONE Loan— 20 PERIOD.— GENERAL.—In ment period shall— 22 ‘‘(I) exclude any period of au- 23 thorized 24 469A; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 the case of a Fed- ‘‘(i) subject to clause (ii), the repay- 21 VerDate 0ct 09 2002 OF Jkt 000000 deferment under section (680541 26) PO 00000 Frm 00291 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 292 1 ‘‘(II) begin the day after 6 2 months after the date the student 3 ceases to carry at least one-half the 4 normal full-time academic workload 5 (as determined by the institution); 6 and 7 ‘‘(ii) interest shall begin to accrue or 8 be paid by the borrower on the day the 9 loan is disbursed. 10 ‘‘(B) CONSOLIDATION PARENT 11 LOANS.—In 12 dation Loan or a Federal ONE Parent Loan, 13 the repayment period shall— 14 the case of a Federal ONE Consoli- ‘‘(i) exclude any period of authorized 15 deferment; and 16 ‘‘(ii) begin— 17 ‘‘(I) on the day the loan is dis- 18 bursed; or 19 ‘‘(II) if the loan is disbursed in 20 multiple installments, on the day of 21 the last such disbursement. 22 ‘‘(C) ACTIVE DUTY EXCLUSION.—There 23 shall be excluded from the 6-month period that 24 begins on the date on which a student ceases to 25 carry at least one-half the normal full-time aca- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00292 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 293 1 demic workload as described in subparagraph 2 (A) any period not to exceed 3 years during 3 which a borrower who is a member of a reserve 4 component of the Armed Forces named in sec- 5 tion 10101 of title 10, United States Code, is 6 called or ordered to active duty for a period of 7 more than 30 days (as defined in section 8 101(d)(2) of such title). Such period of exclu- 9 sion shall include the period necessary to re- 10 sume enrollment at the borrower’s next avail- 11 able regular enrollment period. 12 ‘‘(2) PAYMENT 13 ‘‘(A) COMMENCEMENT OF REPAYMENT.— 14 Repayment of principal on loans made under 15 this part shall begin at the beginning of the re- 16 payment period described in paragraph (1). 17 ‘‘(B) CAPITALIZATION 18 ‘‘(i) IN OF INTEREST.— GENERAL.—Interest on loans 19 made under this part for which payments 20 of principal are not required during the 6- 21 month 22 (1)(A)(i)(II) or for which payments are de- 23 ferred under section 469A shall— 24 described in paragraph terly; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 period ‘‘(I) be paid monthly or quar- 25 VerDate 0ct 09 2002 OF PRINCIPAL AND INTEREST.— Jkt 000000 (680541 26) PO 00000 Frm 00293 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 294 1 ‘‘(II) be added to the principal 2 amount of the loan only— 3 ‘‘(aa) when the loan enters 4 repayment; 5 ‘‘(bb) at the expiration of a 6 the 6-month period described in 7 paragraph (1)(A)(i)(II); 8 ‘‘(cc) at the expiration of a 9 period of deferment, unless other- 10 wise exempted; or 11 ‘‘(dd) when the borrower de- 12 faults. 13 ‘‘(ii) MAXIMUM 14 Interest capitalized shall not be deemed to 15 exceed the amount equal to the maximum 16 aggregate limit of the loan under section 17 465(b). 18 ‘‘(C) NOTICE.—Not less than 60 days, and 19 again not less than 30 days, prior to the antici- 20 pated commencement of the repayment period 21 for a Federal ONE Loan, the Secretary shall 22 provide notice to the borrower— 23 ‘‘(i) that interest will accrue before re- 24 payment begins; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AGGREGATE LIMIT.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00294 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 295 1 ‘‘(ii) that interest will be added to the 2 principal amount of the loan in the cases 3 described in subparagraph (B)(i)(II); and 4 ‘‘(iii) of the borrower’s option to begin 5 loan repayment prior to such repayment 6 period. 7 ‘‘(b) REPAYMENT AMOUNT.— 8 ‘‘(1) IN total of the payments 9 by a borrower, except as otherwise provided by an 10 income-based repayment plan under subsection (d), 11 during any year of any repayment period with re- 12 spect to the aggregate amount of all loans made 13 under this part to the borrower shall not (unless the 14 borrower and the Secretary otherwise agree), be less 15 than $600 or the balance of all such loans (together 16 with interest thereon), whichever amount is less (but 17 in no instance less than the amount of interest due 18 and payable, notwithstanding any repayment plan 19 described in subsection (c)). 20 ‘‘(2) AMORTIZATION.— 21 ‘‘(A) INTEREST RATE.—The amount of the 22 periodic payment and the repayment schedule 23 for a loan made under this part shall be estab- 24 lished by assuming an interest rate equal to the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00295 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 296 1 applicable rate of interest at the time of the 2 first disbursement of the loan. 3 ‘‘(B) 4 AMOUNT.—The 5 of a loan under this part shall require that the 6 amount of the periodic payment will be adjusted 7 annually in order to reflect adjustments in— TO REPAYMENT note or other written evidence 8 ‘‘(i) interest rates occurring as a con- 9 sequence of variable rate loans under parts 10 B or D paid in conjunction with Federal 11 ONE Loans under subsection (d)(1)(B)(i); 12 or 13 ‘‘(ii) principal occurring as a con- 14 sequence of interest capitalization under 15 subsection (a)(2)(B). 16 ‘‘(c) REPAYMENT PLANS.— 17 ‘‘(1) DESIGN AND SELECTION.—Not more than 18 6 months prior to the date on which a borrower’s 19 first payment on a loan made under this part is due, 20 the Secretary shall offer the borrower two plans for 21 repayment of such loan, including principal and in- 22 terest on the loan. The borrower shall be entitled to 23 accelerate, without penalty, repayment on the bor- 24 rower’s loans under this part. The borrower may 25 choose— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ADJUSTMENT 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00296 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 297 1 ‘‘(A) a standard repayment plan with a 2 fixed monthly repayment amount paid over a 3 fixed period of time, not to exceed 10 years; or 4 ‘‘(B) an income-based repayment plan 5 under subsection (d). 6 ‘‘(2) SELECTION a bor- 7 rower of a loan made under this part does not select 8 a repayment plan described in paragraph (1), the 9 Secretary shall provide the borrower with the repay- 10 ment plan described in paragraph (1)(A). 11 ‘‘(3) CHANGES 12 ‘‘(A) IN IN SELECTIONS.— GENERAL.—Subject to subpara- 13 graph (B), the borrower of a loan made under 14 this part may change the borrower’s selection of 15 a repayment plan under paragraph (1), or the 16 Secretary’s selection of a plan for the borrower 17 under paragraph (2), as the case may be, under 18 such terms and conditions as may be estab- 19 lished by the Secretary, except that the Sec- 20 retary may not establish any terms or condi- 21 tions with respect to whether a borrower may 22 change the borrower’s repayment plan. Nothing 23 in this subsection shall prohibit the Secretary 24 from encouraging struggling borrowers from en- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BY SECRETARY.—If 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00297 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 298 1 rolling in the income-driven repayment plan de- 2 scribed in section 466(d). 3 ‘‘(B) 4 QUIRED.—All 5 borrower shall be repaid under the same repay- 6 ment plan under paragraph (1), except that the 7 borrower may repay a Federal ONE Parent 8 Loan or an Excepted Federal ONE Consolida- 9 tion Loan (as defined in subsection (d)(5)) sep- 10 arately from other loans made under this part 11 to the borrower. 12 ‘‘(4) REPAYMENT REPAYMENT PLAN RE- loans made under this part to a AFTER DEFAULT.—The Sec- 13 retary may require any borrower who has defaulted 14 on a loan made under this part to— 15 ‘‘(A) pay all reasonable collection costs as- 16 sociated with such loan; and 17 ‘‘(B) repay the loan pursuant to the in- 18 come-based repayment plan under subsection 19 (d). 20 ‘‘(5) REPAYMENT PERIOD.—For purposes of 21 calculating the repayment period under this sub- 22 section, such period shall commence at the time the 23 first payment of principal is due from the borrower. 24 ‘‘(6) INSTALLMENTS.— Repayment of loans 25 under this part shall be in installments in accord- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 SAME 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00298 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 299 1 ance with the repayment plan selected under para- 2 graph (1) and commencing at the beginning of the 3 repayment period determined under paragraph (5). 4 ‘‘(d) INCOME-BASED REPAYMENT PROGRAM.— 5 ‘‘(1) IN any other 6 provision of this Act, the Secretary shall carry out 7 a program under which— 8 ‘‘(A) a borrower of any loan made under 9 this part (other than a Federal ONE Parent 10 Loan or an Excepted Federal ONE Consolida- 11 tion Loan) may elect to have the borrower’s ag- 12 gregate monthly payment for all such loans— 13 ‘‘(i) not to exceed the result obtained 14 by dividing by 12, 15 percent of the result 15 obtained by calculating, on at least an an- 16 nual basis, the amount by which— 17 ‘‘(I) the adjusted gross income of 18 the borrower or, if the borrower is 19 married and files a Federal income 20 tax return jointly with or separately 21 from the borrower’s spouse, the ad- 22 justed gross income of the borrower 23 and the borrower’s spouse; exceeds 24 ‘‘(II) 150 percent of the poverty 25 line applicable to the borrower’s fam- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00299 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 300 1 ily size as determined under section 2 673(2) of the Community Services 3 Block Grant Act (42 U.S.C. 9902(2)); 4 and 5 ‘‘(ii) not to be less than $25; 6 ‘‘(B) the Secretary adjusts the calculated 7 monthly payment under subparagraph (A), if— 8 ‘‘(i) in addition to the loans described 9 in subparagraph (A), the borrower has an 10 outstanding loan made under part B or D 11 (other than an excepted parent loan or an 12 excepted consolidation loan, as such terms 13 are defined in section 493C(a)), by deter- 14 mining the borrower’s adjusted monthly 15 payment by multiplying— 16 ‘‘(I) the calculated monthly pay- 17 ment, by 18 ‘‘(II) the percentage of the total 19 outstanding principal amount of the 20 borrower’s loans described in the mat- 21 ter preceding subclause (I), which are 22 described in subparagraph (A); 23 ‘‘(ii) the borrower and borrower’s 24 spouse have loans described in subpara- 25 graph (A) and outstanding loans under g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00300 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 301 1 part B or D (other than an excepted par- 2 ent loan or an excepted consolidation loan, 3 as such terms are defined in section 4 493C(a)) and have filed a joint or separate 5 Federal income tax return, in which case 6 the Secretary determines— 7 ‘‘(I) each borrower’s percentage 8 of the couple’s total outstanding 9 amount of principal on such loans; 10 ‘‘(II) the adjusted monthly pay- 11 ment for each borrower by multiplying 12 the 13 payment by the percentage deter- 14 mined under subclause (I) applicable 15 to the borrower; and calculated monthly 16 ‘‘(III) if the borrower’s loans are 17 held by multiple holders, the bor- 18 rower’s adjusted monthly payment for 19 loans described in subparagraph (A) 20 by multiplying the adjusted monthly 21 payment determined under subclause 22 (II) by the percentage of the total 23 outstanding principal amount of the 24 borrower’s loans described in the mat- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 borrower’s 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00301 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 302 1 ter preceding subclause (I), which are 2 described in subparagraph (A); 3 ‘‘(C) the holder of such a loan shall apply 4 the borrower’s monthly payment under this sub- 5 section first toward interest due on the loan, 6 next toward any fees due on the loan, and then 7 toward the principal of the loan; 8 ‘‘(D) any principal due and not paid under 9 subparagraph (C) shall be deferred; 10 ‘‘(E) any interest due and not paid under 11 subparagraph (C) shall be capitalized, at the 12 time the borrower— 13 ‘‘(i) ends the election to make income- 14 based repayment under this subsection; or 15 ‘‘(ii) begins making payments of not 16 less than the amount specified in subpara- 17 graph (G)(i); 18 ‘‘(F) the amount of time the borrower 19 makes monthly payments under subparagraph 20 (A) may exceed 10 years; 21 ‘‘(G) if the borrower no longer wishes to 22 continue the election under this subsection, 23 then— 24 ‘‘(i) the maximum monthly payment 25 required to be paid for all loans made to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00302 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 303 1 the borrower under this part (other than a 2 Federal ONE Parent Loan or an Excepted 3 Federal ONE Consolidation Loan) shall 4 not exceed the monthly amount calculated 5 under subsection (c)(1)(A), based on a 10- 6 year repayment period, when the borrower 7 first made the election described in this 8 subsection; and 9 ‘‘(ii) the amount of time the borrower 10 is permitted to repay such loans may ex- 11 ceed 10 years; 12 ‘‘(H) the Secretary shall cancel any out- 13 standing balance (other than an amount equal 14 to the interest accrued during any period of in- 15 school deferment under subparagraph (A), (B), 16 or (F) of section 469A(b)(1)) due on all loans 17 made under this part (other than a Federal 18 ONE Parent Loan or an Excepted Federal 19 ONE Consolidation Loan) to a borrower— 20 ‘‘(i) who, at any time, elected to par- 21 ticipate in income-based repayment under 22 subparagraph (A); 23 ‘‘(ii) whose final monthly payment for 24 such loans prior to the loan cancellation g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00303 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 304 1 under this subparagraph was made under 2 such income-based repayment; and 3 ‘‘(iii) who has repaid, pursuant to in- 4 come-based repayment under subparagraph 5 (A), a standard repayment plan under sub- 6 section (c)(1)(A), or a combination— 7 ‘‘(I) an amount of principal and 8 interest on such loans that is equal to 9 the total amount of principal and in- 10 terest that the borrower would have 11 repaid under a standard repayment 12 plan under subsection (c)(1)(A), based 13 on a 10-year repayment period, when 14 the borrower entered repayment on 15 such loans; and 16 ‘‘(II) the amount of interest that 17 accrues during a period of deferment 18 described in section 469A prior to the 19 completion of the repayment period 20 described in subclause (I) on the por- 21 tion of such loans remaining to be re- 22 paid in accordance with such sub- 23 clause; and 24 ‘‘(I) a borrower who is repaying a loan 25 made under this part pursuant to income-based g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00304 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 305 1 repayment under subparagraph (A) may elect, 2 at any time during the 10-year period beginning 3 on the date the borrower entered repayment on 4 the loan, to terminate repayment pursuant to 5 such income-based repayment and repay such 6 loan under the standard repayment plan. 7 ‘‘(2) ELIGIBILITY 8 ‘‘(A) IN GENERAL.—The Secretary shall 9 establish procedures for annual verification of a 10 borrower’s annual income and the annual 11 amount due on the total amount of loans made 12 under this part (other than a Federal ONE 13 Parent Loan or an Excepted Federal ONE 14 Consolidation Loan), and such other procedures 15 as are necessary to implement effectively in- 16 come-based repayment under this subsection, 17 including the procedures established with re- 18 spect to section 493C. 19 ‘‘(B) INCOME INFORMATION.—The Sec- 20 retary may obtain such information as is rea- 21 sonably necessary regarding the income of a 22 borrower (and the borrower’s spouse, if applica- 23 ble) of a loan made under this part that is, or 24 may be, repaid pursuant to income-based repay- 25 ment under this subsection, for the purpose of g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DETERMINATIONS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00305 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 306 1 determining the annual repayment obligation of 2 the borrower. The Secretary shall establish pro- 3 cedures for determining the borrower’s repay- 4 ment obligation on that loan for such year, and 5 such other procedures as are necessary to im- 6 plement effectively the income-based repayment 7 under this subsection. 8 ‘‘(C) BORROWER bor- 9 rower who chooses to repay a loan made under 10 this part pursuant to income-based repayment 11 under this subsection, and— 12 ‘‘(i) for whom adjusted gross income 13 is available and reasonably reflects the bor- 14 rower’s current income, shall, to the max- 15 imum extent practicable, provide to the 16 Secretary the Federal tax information of 17 the borrower; and 18 ‘‘(ii) for whom adjusted gross income 19 is unavailable or does not reasonably re- 20 flect the borrower’s current income, shall 21 provide to the Secretary other documenta- 22 tion of income satisfactory to the Sec- 23 retary, which documentation the Secretary 24 may use to determine an appropriate re- 25 payment schedule. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 REQUIREMENTS.—A 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00306 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 307 1 ‘‘(3) NOTIFICATION Sec- 2 retary shall establish procedures under which a bor- 3 rower of a loan made under this part who chooses 4 to repay such loan pursuant to income-based repay- 5 ment under this subsection is notified of the terms 6 and conditions of such plan, including notification 7 that if a borrower considers that special cir- 8 cumstances, such as a loss of employment by the 9 borrower or the borrower’s spouse, warrant an ad- 10 justment in the borrower’s loan repayment as deter- 11 mined using the borrower’s Federal tax return infor- 12 mation, or the alternative documentation described 13 in paragraph (2)(C), the borrower may contact the 14 Secretary, who shall determine whether such adjust- 15 ment is appropriate, in accordance with criteria es- 16 tablished by the Secretary. 17 ‘‘(4) REDUCED 18 ‘‘(A) IN PAYMENT PERIODS.— GENERAL.—The Secretary shall 19 authorize borrowers meeting the criteria under 20 subparagraph (B) to make monthly payments 21 of $5 for a period not in excess of 3 years, ex- 22 cept that— 23 ‘‘(i) for purposes of subparagraph 24 (B)(i), the Secretary may authorize re- 25 duced payments in 6-month increments, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TO BORROWERS.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00307 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 308 1 beginning on the date the borrower pro- 2 vides to the Secretary the evidence de- 3 scribed in subclause (I) or (II) of subpara- 4 graph (B)(i); and 5 ‘‘(ii) for purposes of subparagraph 6 (B)(ii), the Secretary may authorize re- 7 duced payments in 3-month increments, 8 beginning on the date the borrower pro- 9 vides to the Secretary the evidence de- 10 scribed in subparagraph (B)(ii)(I). 11 ‘‘(B) ELIGIBILITY 12 Secretary shall authorize borrowers to make re- 13 duced payments under this paragraph in the 14 following circumstances: 15 ‘‘(i) In a case of borrower who is seek- 16 ing and unable to find full-time employ- 17 ment, as demonstrated by providing to the 18 Secretary— 19 ‘‘(I) evidence of the borrower’s 20 eligibility for unemployment benefits 21 to the Secretary; or 22 ‘‘(II) a written certification or an 23 equivalent that— 24 ‘‘(aa) the borrower has reg- 25 istered with a public or private g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DETERMINATIONS.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00308 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 309 1 employment agency that is avail- 2 able to the borrower within a 50- 3 mile radius of the borrower’s 4 home address; and 5 ‘‘(bb) in the case of a bor- 6 rower that has been granted a re- 7 quest under this subparagraph, 8 the borrower has made at least 9 six diligent attempts during the 10 preceding six-month period to se- 11 cure full-time employment. 12 ‘‘(ii) The Secretary determines that, 13 due to high medical expenses, the $25 14 monthly payment the borrower would oth- 15 erwise make would be an extreme economic 16 hardship to the borrower, if— 17 ‘‘(I) the borrower documents the 18 reason why the $25 minimum pay- 19 ment is an extreme economic hard- 20 ship; and 21 ‘‘(II) the borrower recertifies the 22 reason for the $5 minimum payment 23 on a three-month basis. 24 ‘‘(C) DEFINITION.—For purpose of this 25 section, the term ‘full-time employment’ means g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00309 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 310 1 employment that will provide not less than 30 2 hours of work a week and is expected to con- 3 tinue for a period of not less than 3 months. 4 ‘‘(5) DEFINITIONS.—In this subsection: 5 ‘‘(A) GROSS INCOME.—The 6 term ‘adjusted gross income’ has the meaning 7 given the term in section 62 of the Internal 8 Revenue Code of 1986. 9 ‘‘(B) EXCEPTED FEDERAL ONE CONSOLI- 10 DATION LOAN.—The term ‘Excepted Federal 11 ONE Consolidation Loan’ means a Federal 12 ONE Consolidation Loan if the proceeds of 13 such loan were used to discharge the liability 14 on— 15 ‘‘(i) a Federal ONE Parent Loan; 16 ‘‘(ii) a Federal Direct PLUS Loan, or 17 a loan under section 428B, that is made, 18 insured, or guaranteed on behalf of a de- 19 pendent student; 20 ‘‘(iii) an excepted consolidation loan 21 (defined in section 493C); or 22 ‘‘(iv) a Federal ONE Consolidation 23 loan that was used to discharge the liabil- 24 ity on a loan described in clause (i), (ii), 25 or (iii). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ADJUSTED 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00310 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 311 1 ‘‘(e) RULES OF CONSTRUCTION.—Nothing in this 2 section shall be construed to authorize, with respect to 3 loans made under this part— 4 ‘‘(1) eligibility for a repayment plan that is not 5 described in subsection (c)(1) or section 468(c); or 6 ‘‘(2) the Secretary to— 7 ‘‘(A) carry out a repayment plan, which is 8 not described in subsection (c)(1) or section 9 468(c); or 10 ‘‘(B) modify a repayment plan that is de- 11 scribed in subsection (c)(1) or section 468(c) in 12 a manner that results in any net cost to the 13 Federal Government, as determined jointly by 14 the Secretary, the Secretary of the Treasury, 15 and the Director of the Office of Management 16 and Budget. 17 ‘‘SEC. 467. FEDERAL ONE PARENT LOANS. 18 ‘‘(a) AUTHORITY TO BORROW.— 19 ‘‘(1) AUTHORITY par- 20 ent of a dependent student shall be eligible to bor- 21 row funds under this section in amounts specified in 22 subsection (b), if— 23 ‘‘(A) the parent is borrowing to pay for the 24 educational costs of a dependent student who g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND ELIGIBILITY.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00311 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 312 1 meets the requirements for an eligible student 2 under section 484(a); 3 ‘‘(B) the parent meets the applicable re- 4 quirements concerning defaults and overpay- 5 ments that apply to a student borrower; 6 ‘‘(C) the parent complies with the require- 7 ments for submission of a statement of edu- 8 cational purpose that apply to a student bor- 9 rower under section 484(a)(4)(A) (other than 10 the completion of a statement of selective serv- 11 ice registration status); 12 ‘‘(D) the parent meets the requirements 13 that apply to a student under section 437(a); 14 ‘‘(E) the parent— 15 ‘‘(i) does not have an adverse credit 16 history; or 17 ‘‘(ii) has an adverse credit history, but 18 has— 19 ‘‘(I) obtained an endorser who 20 does not have an adverse credit his- 21 tory or documented to the satisfaction 22 of the Secretary that extenuating cir- 23 cumstances exist in accordance with 24 paragraph (4)(D); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00312 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 313 1 ‘‘(II) completed Federal ONE 2 Parent Loan counseling offered by the 3 Secretary; and 4 ‘‘(F) in the case of a parent who has been 5 convicted of, or has pled nolo contendere or 6 guilty to, a crime involving fraud in obtaining 7 funds under this title, such parent has com- 8 pleted the repayment of such funds to the Sec- 9 retary, or to the holder in the case of a loan 10 under this title obtained by fraud. 11 ‘‘(2) TERMS, 12 Except as provided in subsections (c), (d), and (e), 13 loans made under this section shall have the same 14 terms, conditions, and benefits as all other loans 15 made under this part. 16 ‘‘(3) PARENT BORROWERS.— 17 ‘‘(A) DEFINITION.—For purposes of this 18 section, the term ‘parent’ includes a student’s 19 biological or adoptive mother or father or the 20 student’s stepparent, if the biological parent or 21 adoptive mother or father has remarried at the 22 time of filing the common financial reporting 23 form under section 483(a), and that spouse’s 24 income and assets would have been taken into g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CONDITIONS, AND BENEFITS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00313 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 314 1 account when calculating the student’s expected 2 family contribution. 3 ‘‘(B) nec- 4 essary to carry out the provisions of this sec- 5 tion, the terms ‘student’ and ‘borrower’ as used 6 in this part shall include a parent borrower 7 under this section. 8 ‘‘(4) ADVERSE 9 CREDIT HISTORY DEFINITIONS AND ADJUSTMENTS.— 10 ‘‘(A) DEFINITIONS.—For purposes of this 11 section: 12 ‘‘(i) IN GENERAL.—The term ‘adverse 13 credit history’, when used with respect to 14 a borrower, means that the borrower— 15 ‘‘(I) has one or more debts with 16 a total combined outstanding balance 17 equal to or greater than $2,085, as 18 may be adjusted by the Secretary in 19 accordance with subparagraph (B), 20 that— 21 ‘‘(aa) are 90 or more days 22 delinquent as of the date of the 23 credit report; or 24 ‘‘(bb) have been placed in 25 collection or charged off during g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CLARIFICATION.—Whenever 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00314 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 315 1 the two years preceding the date 2 of the credit report; or 3 ‘‘(II) has been the subject of a 4 default determination, bankruptcy dis- 5 charge, foreclosure, repossession, tax 6 lien, wage garnishment, or write-off of 7 a debt under this title during the 5 8 years preceding the date of the credit 9 report. 10 ‘‘(ii) OFF.—The term 11 ‘charged off’ means a debt that a creditor 12 has written off as a loss, but that is still 13 subject to collection action. 14 ‘‘(iii) IN COLLECTION.— The term ‘in 15 collection’ means a debt that has been 16 placed with a collection agency by a cred- 17 itor or that is subject to more intensive ef- 18 forts by a creditor to recover amounts 19 owed from a borrower who has not re- 20 sponded satisfactorily to the demands rou- 21 tinely made as part of the creditor’s billing 22 procedures. 23 ‘‘(B) ADJUSTMENTS.— 24 ‘‘(i) IN 25 08:59 Dec 01, 2017 GENERAL.—In a case of a bor- rower with a debt amount described in g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CHARGED Jkt 000000 (680541 26) PO 00000 Frm 00315 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 316 1 subparagraph (A)(i), the Secretary shall 2 increase such debt amount, or its inflation- 3 adjusted equivalent, if the Secretary deter- 4 mines that an inflation adjustment to such 5 debt amount would result in an increase of 6 $100 or more to such debt amount. 7 ‘‘(ii) INFLATION 8 making the inflation adjustment under 9 clause (i), the Secretary shall— 10 ‘‘(I) use the annual average per- 11 cent change of the All Items Con- 12 sumer Price Index for All Urban Con- 13 sumers, before seasonal adjustment, 14 as the measurement of inflation; and 15 ‘‘(II) if the adjustment calculated 16 under subclause (I) is equal to or 17 greater than $100— 18 ‘‘(aa) add the adjustment to 19 the debt amount, or its inflation- 20 adjusted equivalent; and 21 ‘‘(bb) round up to the near- 22 est $5. 23 ‘‘(iii) PUBLICATION.—The Secretary 24 shall publish a notice in the Federal Reg- 25 ister announcing any increase to the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ADJUSTMENT.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00316 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 317 1 threshold amount specified in subpara- 2 graph (A)(i)(I). 3 ‘‘(C) TREATMENT OF ABSENCE OF CREDIT 4 HISTORY.—For 5 Secretary shall not consider the absence of a 6 credit history as an adverse credit history and 7 shall not deny a Federal ONE Parent loan on 8 that basis. 9 purposes of this section, the ‘‘(D) EXTENUATING CIRCUMSTANCES.— 10 For purposes of this section, the Secretary may 11 determine that extenuating circumstances exist 12 based on documentation that may include— 13 ‘‘(i) an updated credit report for the 14 parent; or 15 ‘‘(ii) a statement from the creditor 16 that the parent has repaid or made satis- 17 factory arrangements to repay a debt that 18 was considered in determining that the 19 parent has an adverse credit history 20 ‘‘(b) LIMITATION BASED ON NEED.—Any loan under 21 this section may be counted as part of the expected family 22 contribution in the determination of need under this title, 23 but no loan may be made to any parent under this section 24 for any academic year in excess of the lesser of— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00317 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 318 1 ‘‘(1) the student’s estimated cost of attendance 2 minus the student’s estimated financial assistance 3 (as calculated under section 465(b)(1)(A)); or 4 ‘‘(2) the established annual loan limits for such 5 loan under section 465(b). 6 ‘‘(c) PARENT LOAN DISBURSEMENT.—All loans 7 made under this section shall be disbursed in accordance 8 with the requirements of section 465(a) and shall be dis9 bursed by— 10 11 ‘‘(1) an electronic transfer of funds from the lender to the eligible institution; or 12 ‘‘(2) a check copayable to the eligible institution 13 and the parent borrower. 14 ‘‘(d) PAYMENT OF PRINCIPAL AND INTEREST.— 15 ‘‘(1) COMMENCEMENT REPAYMENT.—Re- 16 payment of principal on loans made under this sec- 17 tion shall commence not later than 60 days after the 18 date such loan is disbursed by the Secretary, subject 19 to deferral— 20 ‘‘(A) during any period during which the 21 parent borrower meets the conditions required 22 for a deferral under section 469A; and 23 ‘‘(B) upon the request of the parent bor- 24 rower, during the 6-month period beginning, if 25 the parent borrower is also a student, the day g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00318 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 319 1 after the date such parent borrower ceases to 2 carry at least one-half such a workload. 3 ‘‘(2) MAXIMUM REPAYMENT PERIOD.—The 4 maximum repayment period for a loan made under 5 this section shall be a 10-year period beginning on 6 the commencement of such period described in para- 7 graph (1). 8 ‘‘(3) CAPITALIZATION OF INTEREST.—Interest 9 on loans made under this section for which pay- 10 ments of principal are deferred pursuant to para- 11 graph (1) shall, if agreed upon by the borrower and 12 the Secretary— 13 ‘‘(A) be paid monthly or quarterly; or 14 ‘‘(B) be added to the principal amount of 15 the loan not more frequently than quarterly by 16 the Secretary. 17 ‘‘(4) APPLICABLE RATES OF INTEREST.—Inter- 18 est on loans made pursuant to this section shall be 19 at the applicable rate of interest provided in section 20 465(c)(3) for loans made under this section. 21 ‘‘(5) AMORTIZATION.—Section 466(b)(2) shall 22 apply to each loan made under this section. 23 ‘‘(e) VERIFICATION OF IMMIGRATION STATUS AND 24 SOCIAL SECURITY NUMBER.—A parent who wishes to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00319 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 320 1 borrow funds under this section shall be subject to 2 verification of the parent’s— 3 ‘‘(1) immigration status in the same manner as 4 immigration status is verified for students under 5 section 484(g); and 6 ‘‘(2) social security number in the same manner 7 as social security numbers are verified for students 8 under section 484(p). 9 ‘‘(f) DESIGNATION.—For purposes of this Act, loans 10 described in this section shall be known as ‘Federal ONE 11 Parent Loans’. 12 ‘‘SEC. 468. FEDERAL ONE CONSOLIDATION LOANS. 13 ‘‘(a) TERMS AND CONDITIONS.—In making consoli- 14 dation loans under this section, the Secretary shall— 15 ‘‘(1) not make such a loan to an eligible bor- 16 rower, unless the Secretary has determined, in ac- 17 cordance with reasonable and prudent business prac- 18 tices, for each loan being consolidated, that the 19 loan— 20 ‘‘(A) is a legal, valid, and binding obliga- 21 tion of the borrower; and 22 ‘‘(B) was made and serviced in compliance 23 with applicable laws and regulations; 24 ‘‘(2) ensure that each consolidation loan made 25 under this section will bear interest, and be subject g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00320 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 321 1 to repayment, in accordance with subsection (c), ex- 2 cept as otherwise provided under subsections (f) and 3 (g) of section 465; 4 ‘‘(3) ensure that each consolidation loan will be 5 made, notwithstanding any other provision of this 6 part limiting the annual or aggregate principal 7 amount for all loans made to a borrower, in an 8 amount which is equal to the sum of the unpaid 9 principal and accrued unpaid interest and late 10 charges of all eligible student loans received by the 11 eligible borrower which are selected by the borrower 12 for consolidation; 13 ‘‘(4) ensure that the proceeds of each consolida- 14 tion loan will be paid by the Secretary to the holder 15 or holders of the loans so selected to discharge the 16 liability on such loans; 17 ‘‘(5) disclose to a prospective borrower, in sim- 18 ple and understandable terms, at the time the Sec- 19 retary provides an application for a consolidation 20 loan— 21 ‘‘(A) with respect to a loan made, insured, 22 or guaranteed under this part, part B, or part 23 D, that if a borrower includes such a loan in 24 the consolidation loan— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00321 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 322 1 ‘‘(i) that the consolidation would re- 2 sult in a loss of loan benefits; and 3 ‘‘(ii) which specific loan benefits the 4 borrower would lose, including the loss of 5 eligibility for loan forgiveness (including 6 loss of eligibility for interest rate forgive- 7 ness), cancellation, deferment, forbearance, 8 interest-free periods, or loan repayment 9 programs that would have been available 10 for such a loan; and 11 ‘‘(B) with respect to Federal Perkins 12 Loans under this part (as this part was in ef- 13 fect on the day before the date of enactment of 14 the PROSPER Act)— 15 ‘‘(i) that if a borrower includes such a 16 Federal Perkins Loan in the consolidation 17 loan, the borrower will lose all interest-free 18 periods that would have been available for 19 the Federal Perkins Loan, such as— 20 ‘‘(I) the periods during which no 21 interest accrues on such loan while 22 the borrower is enrolled in an institu- 23 tion of higher education at least half- 24 time; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00322 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 323 1 ‘‘(II) the grace period under sec- 2 tion 464(c)(1)(A) (as such section was 3 in effect on the day before the date of 4 enactment of the PROSPER Act); 5 and 6 ‘‘(III) the periods during which 7 the borrower’s student loan repay- 8 ments are deferred under section 9 464(c)(2) (as such section was in ef- 10 fect on the day before the date of en- 11 actment of the PROSPER Act); and 12 ‘‘(ii) that if a borrower includes such 13 a Federal Perkins Loan in the consolida- 14 tion loan, the borrower will no longer be el- 15 igible for cancellation of part or all of the 16 Federal Perkins Loan under section 465(a) 17 (as such section was in effect on the day 18 before the date of enactment of the PROS- 19 PER Act); and 20 ‘‘(iii) the occupations listed in section 21 465 that qualify for Federal Perkins Loan 22 cancellation under section 465(a) (as such 23 section was in effect on the day before the 24 date of enactment of the PROSPER Act); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00323 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 324 1 ‘‘(C) the repayment plans that are avail- 2 able to the borrower under section (c); 3 ‘‘(D) the options of the borrower to prepay 4 the consolidation loan, to pay such loan on a 5 shorter schedule, and to change repayment 6 plans; 7 ‘‘(E) the consequences of default on the 8 consolidation loan; and 9 ‘‘(F) that by applying for a consolidation 10 loan, the borrower is not obligated to agree to 11 take the consolidation loan; and 12 ‘‘(6) not make such a loan to an eligible bor- 13 rower, unless— 14 ‘‘(A) the borrower has agreed to notify the 15 Secretary promptly concerning any change of 16 address; and 17 ‘‘(B) the loan is evidenced by a note or 18 other written agreement which— 19 ‘‘(i) is made without security and 20 without endorsement, except that if— 21 ‘‘(I) the borrower is a minor and 22 such note or other written agreement 23 executed by him or her would not, 24 under applicable law, create a binding g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00324 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 325 1 obligation, endorsement may be re- 2 quired; or 3 ‘‘(II) the borrower desires to in- 4 clude in the consolidation loan, a Fed- 5 eral ONE Parent Loan, or a loan 6 under section 428B, or a Federal Di- 7 rect PLUS loan, made on behalf of a 8 dependent student, endorsement shall 9 be required; 10 ‘‘(ii) provides for the payment of in- 11 terest and the repayment of principal as 12 described in paragraph (2); 13 ‘‘(iii) provides that during any period 14 for which the borrower would be eligible 15 for a deferral under section 469A, which 16 period shall not be included in determining 17 the repayment schedule pursuant to sub- 18 section (c)— 19 ‘‘(I) periodic installments of prin- 20 cipal need not be paid, but interest 21 shall accrue and be paid by the bor- 22 rower or be capitalized; and 23 ‘‘(II) except as otherwise pro- 24 vided under subsections (f) and (g) of 25 section 465, the Secretary shall not g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00325 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 326 1 pay interest on any portion of the 2 consolidation loan, without regard to 3 whether the portion repays Federal 4 Stafford Loans for which the student 5 borrower received an interest subsidy 6 under section 428 or Federal Direct 7 Stafford Loans for which the bor- 8 rower received an interest subsidy 9 under section 455; 10 ‘‘(iv) entitles the borrower to accel- 11 erate without penalty repayment of the 12 whole or any part of the loan; and 13 ‘‘(v) contains a notice of the system of 14 disclosure concerning such loan to con- 15 sumer reporting agencies under section 16 430A, and provides that the Secretary on 17 request of the borrower will provide infor- 18 mation on the repayment status of the 19 note to such consumer reporting agencies. 20 21 ‘‘(b) NONDISCRIMINATION TION.—The IN LOAN CONSOLIDA- Secretary shall not discriminate against any 22 borrower seeking a loan under this section— 23 24 ‘‘(1) based on the number or type of eligible student loans the borrower seeks to consolidate; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00326 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 327 1 ‘‘(2) based on the type or category of institu- 2 tion of higher education that the borrower attended; 3 ‘‘(3) based on the interest rate to be charged to 4 the borrower with respect to the consolidation loan; 5 or 6 ‘‘(4) with respect to the types of repayment 7 schedules offered to such borrower. 8 ‘‘(c) PAYMENT OF PRINCIPAL AND INTEREST.— 9 ‘‘(1) REPAYMENT 10 ‘‘(A) ESTABLISHMENT.— 11 ‘‘(i) IN GENERAL.—Notwithstanding 12 any other provision of this part, the Sec- 13 retary shall— 14 ‘‘(I) establish repayment terms 15 as will promote the objectives of this 16 section; and 17 ‘‘(II) provide a borrower with the 18 option of the standard-repayment plan 19 or 20 under section 466(d) in lieu of such 21 repayment terms. 22 ‘‘(ii) SCHEDULE income-based repayment TERMS.—The plan repay- 23 ment terms established under clause (i)(I) 24 shall require that if the sum of the consoli- 25 dation loan and the amount outstanding on g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 SCHEDULES.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00327 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 328 1 other eligible student loans to the indi- 2 vidual— 3 ‘‘(I) is less than $7,500, then 4 such consolidation loan shall be repaid 5 in not more than 10 years; 6 ‘‘(II) is equal to or greater than 7 $7,500 but less than $10,000, then 8 such consolidation loan shall be repaid 9 in not more than 12 years; 10 ‘‘(III) is equal to or greater than 11 $10,000 but less than $20,000, then 12 such consolidation loan shall be repaid 13 in not more than 15 years; 14 ‘‘(IV) is equal to or greater than 15 $20,000 but less than $40,000, then 16 such consolidation loan shall be repaid 17 in not more than 20 years; 18 ‘‘(V) is equal to or greater than 19 $40,000 but less than $60,000, then 20 such consolidation loan shall be repaid 21 in not more than 25 years; or 22 ‘‘(VI) is equal to or greater than 23 $60,000, then such consolidation loan 24 shall be repaid in not more than 30 25 years. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00328 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 329 1 amount out- 2 standing on other eligible student loans which 3 may be counted for the purpose of subpara- 4 graph (A) may not exceed the amount of the 5 consolidation loan. 6 ‘‘(2) 7 ADDITIONAL MENTS.—Notwithstanding REPAYMENT REQUIRE- paragraph (1)— 8 ‘‘(A) except in the case of an income-based 9 repayment schedule under section 466(d), a re- 10 payment schedule established with respect to a 11 consolidation loan shall require that the min- 12 imum installment payment be an amount equal 13 to not less than the accrued unpaid interest; 14 and 15 ‘‘(B) an income-based repayment schedule 16 under section 466(d) shall not be available to a 17 consolidation loan borrower who— 18 ‘‘(i) used the proceeds of a Federal 19 ONE Consolidation loan to discharge the 20 liability— 21 ‘‘(I) on a loan under section 22 428B made on behalf of a dependent 23 student; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LIMITATION.—The ‘‘(B) 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00329 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 330 1 ‘‘(II) a Federal Direct PLUS 2 loan made on behalf of a dependent 3 student; 4 ‘‘(III) a Federal ONE Parent 5 loan; or 6 ‘‘(IV) an excepted consolidation 7 loan (defined in section 493C); or 8 ‘‘(ii) used the proceeds of a subse- 9 quent Federal ONE Consolidation loan to 10 discharge the liability on a Federal ONE 11 Consolidation loan described in clause (i). 12 ‘‘(3) COMMENCEMENT OF REPAYMENT.—Re- 13 payment of a consolidation loan shall commence 14 within 60 days after all holders have, pursuant to 15 subsection (a)(4), discharged the liability of the bor- 16 rower on the loans selected for consolidation. 17 ‘‘(4) INTEREST RATE.—A consolidation loan 18 made under this section shall bear interest at an an- 19 nual rate described in section 465(c)(4). 20 ‘‘(d) INSURANCE RULE.—Any insurance premium 21 paid by the borrower under subpart I of part A of title 22 VII of the Public Health Service Act with respect to a 23 loan made under that subpart and consolidated under this 24 section shall be retained by the student loan insurance ac- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00330 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 331 1 count established under section 710 of the Public Health 2 Service Act. 3 ‘‘(e) DEFINITIONS.—For the purpose of this section: 4 ‘‘(1) ELIGIBLE 5 ‘‘(A) IN 6 GENERAL.—The term ‘eligible bor- rower’ means a borrower who— 7 ‘‘(i) is not subject to a judgment se- 8 cured through litigation with respect to a 9 loan under this title or to an order for 10 wage garnishment under section 488A; and 11 ‘‘(ii) at the time of application for a 12 consolidation loan— 13 ‘‘(I) is in repayment status as de- 14 termined under section 466(a)(1); 15 ‘‘(II) is in a grace period pre- 16 ceding repayment; or 17 ‘‘(III) is a defaulted borrower 18 who has made arrangements to repay 19 the obligation on the defaulted loans 20 satisfactory to the holders of the de- 21 faulted loans. 22 ‘‘(B) TERMINATION OF STATUS AS AN ELI- 23 GIBLE BORROWER.—An individual’s status as 24 an eligible borrower under this section termi- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BORROWER.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00331 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 332 1 nates upon receipt of a consolidation loan under 2 this section, except that— 3 ‘‘(i) an individual who receives eligible 4 student loans after the date of receipt of 5 the consolidation loan may receive a subse- 6 quent consolidation loan; 7 ‘‘(ii) loans received prior to the date 8 of the consolidation loan may be added 9 during the 180-day period following the 10 making of the consolidation loan; 11 ‘‘(iii) loans received following the 12 making of the consolidation loan may be 13 added during the 180-day period following 14 the making of the consolidation loan; 15 ‘‘(iv) loans received prior to the date 16 of the first consolidation loan may be 17 added to a subsequent consolidation loan; 18 and 19 ‘‘(v) an individual may obtain a subse- 20 quent consolidation loan for the purpose— 21 ‘‘(I) of income-based repayment 22 under section 466(d) only if the loan 23 has been submitted for default aver- 24 sion or if the loan is already in de- 25 fault; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00332 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 333 1 ‘‘(II) of using the no accrual of 2 interest for active duty service mem- 3 bers benefit offered under section 4 465(g); of 5 ‘‘(III) of submitting an applica- 6 tion under section 469B(d) for a bor- 7 rower defense to repayment of a loan 8 made, insured, or guaranteed under 9 this title. 10 ‘‘(2) ELIGIBLE the pur- 11 pose of paragraph (1), the term ‘eligible student 12 loans’ means loans— 13 ‘‘(A) made, insured, or guaranteed under 14 part B, and first disbursed before July 1, 2010, 15 including loans on which the borrower has de- 16 faulted (but has made arrangements to repay 17 the obligation on the defaulted loans satisfac- 18 tory to the Secretary or guaranty agency, 19 whichever insured the loans); 20 ‘‘(B) made under part D of this title, and 21 first disbursed before July 1, 2019; 22 ‘‘(C) made under this part before Sep- 23 tember 30, 2017; 24 ‘‘(D) made under this part on or after the 25 date of enactment of the PROSPER Act; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 STUDENT LOANS.—For 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00333 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 334 1 ‘‘(E) made under subpart II of part A of 2 title VII of the Public Health Service Act; or 3 ‘‘(F) made under part E of title VIII of 4 the Public Health Service Act. 5 ‘‘(f) DESIGNATION.—For purposes of this Act, loans 6 described in this section shall be known as ‘Federal ONE 7 Consolidation Loans’. 8 ‘‘SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY. 9 ‘‘(a) IN GENERAL.—A borrower who has 1 or more 10 loans in 2 or more of the categories described in subsection 11 (b), and who has not yet entered repayment on 1 or more 12 of those loans in any of the categories, may consolidate 13 all of the loans of the borrower that are described in sub14 section (b) into a Federal ONE Consolidation Loan during 15 the period described in subsection (c). 16 17 ‘‘(b) CATEGORIES SOLIDATED.—The OF LOANS THAT MAY BE CON- categories of loans that may be consoli- 18 dated under this section are— 19 20 ‘‘(1) loans made under this part before October 1, 2017 and on or after July 1, 2019; 21 22 ‘‘(2) loans purchased by the Secretary pursuant to section 459A; 23 ‘‘(3) loans made under part B that are held by 24 an eligible lender, as such term is defined in section 25 435(d); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00334 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 335 1 ‘‘(4) loans made under part D. 2 3 ‘‘(c) TIME PERIOD SOLIDATED.—The IN WHICH LOANS MAY BE CON- Secretary may make a Federal ONE 4 Consolidation Loan under this section to a borrower whose 5 application for such Federal ONE Consolidation Loan is 6 received on or after July 1, 2019, and before July 1, 2024. 7 ‘‘(d) TERMS OF LOANS.—A Federal ONE Consolida- 8 tion Loan made under this subsection shall have the same 9 terms and conditions as a Federal ONE Consolidation 10 Loan made under section 468, except that in determining 11 the applicable rate of interest on the Federal ONE Con12 solidation Loan made under this section, section 465(c)(4) 13 shall be applied without rounding the weighted average of 14 the interest rate on the loans consolidated to the nearest 15 higher one-eighth of one percent as in such section. 16 ‘‘SEC. 470. DEFERMENT. 17 ‘‘(a) EFFECT ON PRINCIPAL AND INTEREST.—A bor- 18 rower of a loan made under this part who meets the re19 quirements described in subsection (b) shall be eligible for 20 a deferment during which installments of principal need 21 not be paid and, unless otherwise provided in this sub22 section, interest shall accrue and be capitalized or paid 23 by the borrower. 24 ‘‘(b) ELIGIBILITY.—A borrower of a loan made under 25 this part shall be eligible for a deferment— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00335 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 336 1 2 ‘‘(1) during any period during which the borrower— 3 ‘‘(A) is carrying at least one-half the nor- 4 mal full-time work load for the course of study 5 that the borrower is pursuing, as determined by 6 the eligible institution the borrower is attend- 7 ing; 8 ‘‘(B) is pursuing a course of study pursu- 9 ant to— 10 ‘‘(i) an eligible graduate fellowship 11 program in accordance with subsection (g); 12 or 13 ‘‘(ii) an eligible rehabilitation training 14 program for individuals with disabilities in 15 accordance with subsection (i); 16 ‘‘(C) is serving on active duty during a war 17 or other military operation or national emer- 18 gency, and for the 180-day period following the 19 demobilization date for such service; 20 ‘‘(D) is performing qualifying National 21 Guard duty during a war or other military op- 22 eration or national emergency, and for the 180- 23 day period following the demobilization date for 24 such service; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00336 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 337 1 ‘‘(E) is a member of the National Guard 2 who is not eligible for a post-active duty 3 deferment under section 493D and is engaged 4 in active State duty for a period of more than 5 30 consecutive days beginning— 6 ‘‘(i) the day after 6 months after the 7 date the student ceases to carry at least 8 one-half the normal full-time academic 9 workload (as determined by the institu- 10 tion); or 11 ‘‘(ii) the day after the borrower ceases 12 enrollment on at least a half-time basis, for 13 a loan in repayment; 14 ‘‘(F) is serving in a medical or dental in- 15 ternship or residency program, the successful 16 completion of which is required to begin profes- 17 sional practice or service, or is serving in a 18 medical or dental internship or residency pro- 19 gram leading to a degree or certificate awarded 20 by an institution of higher education, a hos- 21 pital, or a health care facility that offers post- 22 graduate training; or 23 ‘‘(G) is eligible for interest payments to be 24 made on a loan made under this part for serv- 25 ice in the Armed Forces under section 2174 of g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00337 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 338 1 title 10, United States Code, and pursuant to 2 that eligibility, the interest is being paid on 3 such loan under section 465(f); 4 ‘‘(2) during a period sufficient to enable the 5 borrower to resume honoring the agreement to repay 6 the outstanding balance of principal and interest on 7 the loan after default, if— 8 ‘‘(A) the borrower signs a new agreement 9 to repay such outstanding balance; 10 ‘‘(B) the deferment period is limited to 11 120 days; and 12 ‘‘(C) such deferment is not granted for 13 consecutive periods; 14 ‘‘(3) 15 during a period of administrative deferment described in subsection (j); or 16 ‘‘(4) in the case of a borrower of a Federal 17 ONE Parent Loan or an Excepted Federal ONE 18 Consolidation Loan, during a period described in 19 subsection (k). 20 ‘‘(c) LENGTH OF DEFERMENT.—A deferment grant- 21 ed by the Secretary— 22 ‘‘(1) under subparagraph (F) or (G) of sub- 23 section (b)(1) shall be renewable at 12 month inter- 24 vals; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00338 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 339 1 ‘‘(2) under subparagraph (F) of subsection 2 (b)(1) shall equal the length of time remaining in 3 the borrower’s medical or dental internship or resi- 4 dency program; and 5 ‘‘(3) under subparagraph (G) of subsection 6 (b)(1) shall not exceed 3 years. 7 ‘‘(d) REQUEST AND DOCUMENTATION.—The Sec- 8 retary shall determine the eligibility of a borrower for a 9 deferment under paragraphs (1), (2), or (4) of subsection 10 (b), or in the case of a loan for which an endorser is re11 quired, an endorser’s eligibility for a deferment under 12 paragraph (2) or (4) or eligibility to request a deferment 13 under paragraph (1), based on— 14 ‘‘(1) the receipt of a request for a deferment 15 from the borrower or the endorser, and documenta- 16 tion of the borrower’s or endorser’s eligibility for the 17 deferment or eligibility to request the deferment; 18 ‘‘(2) receipt of a completed loan application 19 that documents the borrower’s eligibility for a 20 deferment; 21 ‘‘(3) receipt of a student status information 22 documenting that the borrower is enrolled on at 23 least a half-time basis; or 24 ‘‘(4) the Secretary’s confirmation of the bor- 25 rower’s half-time enrollment status, if the confirma- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00339 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 340 1 tion is requested by the institution of higher edu- 2 cation. 3 ‘‘(e) NOTIFICATION.—The Secretary shall— 4 5 ‘‘(1) notify a borrower of a loan made under this part— 6 ‘‘(A) the granting of a deferment under 7 this subsection on such loan; and 8 ‘‘(B) the option of the borrower to con- 9 tinue making payments on the outstanding bal- 10 ance of principal and interest on such loan in 11 accordance with subsection (f); 12 ‘‘(2) at the time the Secretary grants a 13 deferment to a borrower of a loan made under this 14 part, and not less frequently than once every 180 15 days during the period of such deferment, provide 16 information to the borrower to assist the borrower in 17 understanding— 18 ‘‘(A) the effect of granting a deferment on 19 the total amount to be paid under the income- 20 based repayment plan under 466(d); 21 ‘‘(B) the fact that interest will accrue on 22 the loan for the period of deferment, other than 23 for a deferment granted under subsection 24 (b)(1)(G); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00340 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 341 1 ‘‘(C) the amount of unpaid principal and 2 the amount of interest that has accrued since 3 the last statement of such amounts provided to 4 the borrower; 5 ‘‘(D) the amount of interest that will be 6 capitalized, and the date on which capitalization 7 will occur; 8 ‘‘(E) the effect of the capitalization of in- 9 terest on the borrower’s loan principal and on 10 the total amount of interest to be paid on the 11 loan; 12 ‘‘(F) the option of the borrower to pay the 13 interest that has accrued before the interest is 14 capitalized; and 15 ‘‘(G) the borrower’s option to discontinue 16 17 the deferment at any time. ‘‘(f) FORM OF DEFERMENT.—The form of a 18 deferment granted under this subsection on a loan made 19 under this part shall be temporary cessation of all pay20 ments on such loan, except that— 21 ‘‘(1) in the case of a deferment granted under 22 subsection (b)(1)(G), payments of interest on the 23 loan will be made by the Secretary under section 24 465(f) during such period of deferment; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00341 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 342 1 ‘‘(2) a borrower may make payments on the 2 outstanding balance of principal and interest on 3 such loan during any period of deferment granted 4 under this subsection. 5 ‘‘(g) GRADUATE FELLOWSHIP DEFERMENT.— 6 ‘‘(1) IN borrower of a loan under 7 this part is eligible for a deferment under subsection 8 (b)(1)(B)(i) during any period for which an author- 9 ized official of the borrower’s graduate fellowship 10 program certifies that the borrower meets the re- 11 quirements of paragraph (2) and is pursuing a 12 course of study pursuant to an eligible graduate fel- 13 lowship program. 14 ‘‘(2) BORROWER REQUIREMENTS.—A borrower 15 meets the requirements of this subparagraph if the 16 borrower— 17 ‘‘(A) holds at least a baccalaureate degree 18 conferred by an institution of higher education; 19 ‘‘(B) has been accepted or recommended 20 by an institution of higher education for accept- 21 ance on a full-time basis into an eligible grad- 22 uate fellowship program; and 23 ‘‘(C) is not serving in a medical internship 24 or residency program, except for a residency 25 program in dentistry. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—A 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00342 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 343 1 ‘‘(h) TREATMENT OF STUDY OUTSIDE THE UNITED 2 STATES.— 3 ‘‘(1) IN GENERAL.—The Secretary shall treat, 4 in the same manner as required under section 5 428(b)(4), any course of study at a foreign univer- 6 sity that is accepted for the completion of a recog- 7 nized international fellowship program by the admin- 8 istrator of such a program as an eligible graduate 9 fellowship program. 10 ‘‘(2) REQUESTS FOR DEFERMENT.—Requests 11 for deferment of repayment of loans under this sub- 12 section by students engaged in graduate or post- 13 graduate fellowship-supported study (such as pursu- 14 ant to a Fulbright grant) outside the United States 15 shall be approved until completion of the period of 16 the fellowship, in the same manner as required 17 under section 428(b)(4). 18 ‘‘(i) REHABILITATION TRAINING PROGRAM 19 DEFERMENT.—A borrower of a loan under this part is 20 eligible for a deferment under subsection (b)(1)(B)(ii) dur21 ing any period for which an authorized official of the bor22 rower’s rehabilitation training program certifies that the 23 borrower is pursuing an eligible rehabilitation training 24 program for individuals with disabilities. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00343 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 344 1 ‘‘(j) ADMINISTRATIVE DEFERMENTS.—The Secretary 2 may grant a deferment to a borrower or, in the case of 3 a loan for which an endorser is required, an endorser, 4 without requiring a request and documentation from the 5 borrower or the endorser under subsection (d) for— 6 ‘‘(1) a period during which the borrower was 7 delinquent at the time a deferment is granted, in- 8 cluding a period for which scheduled payments of 9 principal and interest were overdue at the time such 10 deferment is granted; 11 ‘‘(2) a period during which the borrower or the 12 endorser was granted a deferment under this sub- 13 section but for which the Secretary determines the 14 borrower or the endorser should not have qualified; 15 ‘‘(3) a period necessary for the Secretary to de- 16 termine the borrower’s eligibility for the cancellation 17 of the obligation of the borrower to repay the loan 18 under section 437; 19 ‘‘(4) a period during which the Secretary has 20 authorized deferment due to a national military mo- 21 bilization or other local or national emergency; or 22 ‘‘(5) a period not to exceed 60 days, during 23 which interest shall accrue but not be capitalized, if 24 the Secretary reasonably determines that a suspen- 25 sion of collection activity is warranted to enable the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00344 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 345 1 Secretary to process supporting documentation relat- 2 ing to a borrower’s request— 3 ‘‘(A) for a deferment under this sub- 4 section; 5 ‘‘(B) for a change in repayment plan under 6 section 466(c); or 7 ‘‘(C) to consolidate loans under section 8 468. 9 10 ‘‘(k) DEFERMENTS FOR PARENT OR EXCEPTED CONSOLIDATION 11 LOANS.— ‘‘(1) IN qualified borrower shall 12 be eligible for deferments under paragraphs (3) 13 through (5). 14 15 ‘‘(2) QUALIFIED BORROWER DEFINED.—In this subsection, the term ‘qualified borrower’ means— 16 ‘‘(A) a borrower of a Federal ONE Parent 17 Loan or an Excepted Federal ONE Consolida- 18 tion Loan; or 19 ‘‘(B) in the case of such a loan for which 20 an endorser is required, the endorser of such 21 loan. 22 ‘‘(3) ECONOMIC 23 ‘‘(A) IN HARDSHIP DEFERMENT.— GENERAL.—A qualified borrower 24 shall be eligible for a deferment during periods, 25 not to exceed 3 years in total, during which the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—A 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00345 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 346 1 qualified borrower experiences an economic 2 hardship described in subparagraph (B). 3 ‘‘(B) ECONOMIC economic 4 hardship described in this clause is a period 5 during which the qualified borrower— 6 ‘‘(i) is receiving payment under a 7 means-tested benefit program; 8 ‘‘(ii) is employed full-time and the 9 monthly gross income of the qualified bor- 10 rower does not exceed the greater of— 11 ‘‘(I) the minimum wage rate de- 12 scribed in section 6 of the Fair Labor 13 Standards Act of 1938 (29 U.S.C. 14 206); or 15 ‘‘(II) an amount equal to 150 16 percent of the poverty line; or 17 ‘‘(iii) demonstrates that the sum of 18 the qualified borrower’s monthly payments 19 on the qualified borrower’s Federal ONE 20 Parent Loan or Excepted Federal ONE 21 Consolidation Loan is not less than 20 per- 22 cent of the qualified borrower’s monthly 23 gross income. 24 ‘‘(C) ELIGIBILITY.—To be eligible to re- 25 ceive a deferment under this subparagraph, a g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 HARDSHIP.—An 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00346 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 347 1 qualified borrower shall submit to the Sec- 2 retary— 3 ‘‘(i) for the first period of deferment 4 under this subparagraph, evidence showing 5 the monthly gross income of the qualified 6 borrower; and 7 ‘‘(ii) for a subsequent period of 8 deferment that begins less than one year 9 after the end of a period of deferment 10 granted under this subparagraph— 11 ‘‘(I) evidence showing the month- 12 ly gross income of the qualified bor- 13 rower; or 14 ‘‘(II) the qualified borrower’s 15 most recently filed Federal income tax 16 return, if such a return was filed in 17 either of the two tax years preceding 18 the year in which the qualified bor- 19 rower requests the subsequent period 20 of deferment. 21 ‘‘(4) UNEMPLOYMENT 22 ‘‘(A) IN GENERAL.—A qualified borrower 23 shall be eligible for a deferment for periods dur- 24 ing which the qualified borrower is seeking, and 25 is unable to find, full-time employment. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DEFERMENT.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00347 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 348 1 ‘‘(B) ELIGIBILITY.— 2 ‘‘(i) IN be eligible to 3 receive an deferment under this subpara- 4 graph, a qualified borrower shall submit to 5 the Secretary— 6 ‘‘(I) evidence of the qualified bor- 7 rower’s eligibility for unemployment 8 benefits; or 9 ‘‘(II) written confirmation, or an 10 equivalent as approved by the Sec- 11 retary, that— 12 ‘‘(aa) the qualified borrower 13 has registered with a public or 14 private employment agency, if 15 one is available to the borrower 16 within 50 miles of the qualified 17 borrower’s address; and 18 ‘‘(bb) for requests submitted 19 after the initial request, the 20 qualified borrower has made at 21 least six diligent attempts during 22 the preceding six-month period to 23 secure full-time employment. 24 ‘‘(ii) 25 MENT.—A g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—To 08:59 Dec 01, 2017 Jkt 000000 ACCEPTANCE OF EMPLOY- qualified borrower shall not be (680541 26) PO 00000 Frm 00348 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 349 1 eligible for a deferment under this sub- 2 paragraph if the qualified borrower refuses 3 to seek or accept employment in types of 4 positions or at salary levels or responsi- 5 bility levels for which the qualified bor- 6 rower feels overqualified based on the 7 qualified borrower’s education or previous 8 experience. 9 ‘‘(C) TERMS fol- 10 lowing terms shall apply to a deferment under 11 this subparagraph: 12 ‘‘(i) INITIAL PERIOD.—The first 13 deferment granted to a qualified borrower 14 under this subparagraph may be for a pe- 15 riod of unemployment beginning not more 16 than 6 months before the date on which 17 the Secretary receives the qualified bor- 18 rower’s request for deferment and may be 19 granted for a period of up to 6 months 20 after that date. 21 ‘‘(ii) RENEWALS.—Deferments under 22 this subparagraph shall be renewable at 6- 23 month intervals beginning after the expira- 24 tion of the first period of deferment under 25 clause (i). To be eligible to renew a g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF DEFERMENT.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00349 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 350 1 deferment under this subparagraph, a 2 qualified borrower shall submit to the Sec- 3 retary the information described in sub- 4 paragraph (B)(i). 5 ‘‘(iii) AGGREGATE period 6 of all deferments granted to a borrower 7 under this subparagraph may not exceed 3 8 years in aggregate. 9 ‘‘(5) HEALTH 10 ‘‘(A) IN DEFERMENT.— GENERAL.—A qualified borrower 11 shall be eligible for a deferment during periods 12 in which the qualified borrower is unable to 13 make scheduled loan payments due to high 14 medical expenses, as determined by the Sec- 15 retary. 16 ‘‘(B) ELIGIBILITY.—To be eligible to re- 17 ceive a deferment under this subparagraph, a 18 qualified borrower shall— 19 ‘‘(i) submit to the Secretary docu- 20 mentation 21 scheduled loan payments would be an ex- 22 treme economic hardship to the borrower 23 due to high medical expenses, as deter- 24 mined by the Secretary; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LIMIT.—The 08:59 Dec 01, 2017 Jkt 000000 demonstrating that making (680541 26) PO 00000 Frm 00350 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 351 1 ‘‘(ii) resubmit such documentation to 2 the Secretary not less frequently than once 3 every 3 months. 4 ‘‘(l) PROHIBITIONS.— 5 ‘‘(1) PROHIBITION ON FEES.—No administra- 6 tive fee or other fee may be charged to the borrower 7 in connection with the granting of a deferment 8 under this subsection. 9 ‘‘(2) PROHIBITION ON ADVERSE CREDIT RE- 10 PORTING.—No 11 rower may be reported to a consumer reporting 12 agency solely because of the granting of a deferment 13 under this subsection. 14 adverse information relating to a bor- ‘‘(3) LIMITATION ON AUTHORITY.—The Sec- 15 retary shall not, through regulation or otherwise, au- 16 thorize additional deferment options or periods of 17 deferment other than the deferment options and pe- 18 riods of deferment authorized under this subsection. 19 ‘‘(m) TREATMENT OF ENDORSERS.—With respect to 20 any Federal ONE Parent Loan or Federal ONE Consoli21 dation Loan for which an endorser is required— 22 23 ‘‘(1) paragraphs (2) through (4) of subsection (b) shall be applied— 24 ‘‘(A) by substituting ‘An endorser’ for ‘A 25 borrower’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00351 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 352 1 ‘‘(B) by substituting ‘the endorser’ for ‘the 2 borrower’; and 3 ‘‘(C) by substituting ‘an endorser’ for ‘a 4 borrower’; and 5 ‘‘(2) in the case in which the borrower of such 6 a loan is eligible for a deferment described in sub- 7 paragraph (C), (D), (E), (F), or (G) of subsection 8 (b)(1), but is not making payments on the loan, the 9 endorser of the loan may request a deferment under 10 such subparagraph for the loan. 11 ‘‘(n) DEFINITIONS.—In this section: 12 ‘‘(1) ELIGIBLE 13 GRAM.—The 14 gram’, when used with respect to a course of study 15 pursued by the borrower of a loan under this part, 16 means a fellowship program that— term ‘eligible graduate fellowship pro- 17 ‘‘(A) provides sufficient financial support 18 to graduate fellows to allow for full-time study 19 for at least six months; 20 ‘‘(B) requires a written statement from 21 each applicant explaining the applicant’s objec- 22 tives before the award of that financial support; 23 ‘‘(C) requires a graduate fellow to submit 24 periodic reports, projects, or evidence of the fel- 25 low’s progress; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GRADUATE FELLOWSHIP PRO- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00352 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 353 1 ‘‘(D) in the case of a course of study at an 2 institution of higher education outside the 3 United States described in section 102, accepts 4 the course of study for completion of the fellow- 5 ship program. 6 ‘‘(2) ELIGIBLE TRAINING 7 PROGRAM FOR INDIVIDUALS WITH DISABILITIES.— 8 The term ‘eligible rehabilitation training program 9 for individuals with disabilities’, when used with re- 10 spect a course of study pursued by the borrower of 11 a loan under this part, means a program that— 12 ‘‘(A) is necessary to assist an individual 13 with a disability in preparing for, securing, re- 14 taining, or regaining employment; 15 ‘‘(B) is licensed, approved, certified, or 16 otherwise recognized as providing rehabilitation 17 training to disabled individuals by— 18 ‘‘(i) a State agency with responsibility 19 for 20 drug abuse treatment programs, mental 21 health services programs, or alcohol abuse 22 treatment programs; or 23 rehabilitation programs, of Veterans Affairs; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 vocational ‘‘(ii) the Secretary of the Department 24 VerDate 0ct 09 2002 REHABILITATION Jkt 000000 (680541 26) PO 00000 Frm 00353 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 354 1 ‘‘(C) provides or will provide the borrower 2 with rehabilitation services under a written plan 3 that— 4 ‘‘(i) is individualized to meet the bor- 5 rower’s needs; 6 ‘‘(ii) specifies the date on which the 7 services to the borrower are expected to 8 end; and 9 ‘‘(iii) requires a commitment of time 10 and effort from the borrower that prevents 11 the borrower from being employed at least 12 30 hours per week, either because of the 13 number of hours that must be devoted to 14 rehabilitation or because of the nature of 15 the rehabilitation. 16 ‘‘(3) EXCEPTED 17 LOAN.—The 18 Loan’ have the meaning given the term in section 19 466(d)(5). 20 21 ‘Excepted Federal ONE Consolidation ‘‘(4) FAMILY SIZE.—The term ‘family size’ means the number that is determined by counting— 22 ‘‘(A) the borrower; 23 ‘‘(B) the borrower’s spouse; 24 ‘‘(C) the borrower’s children, including un- 25 born children who are expected to be born dur- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 FEDERAL ONE CONSOLIDATION 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00354 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 355 1 ing the period covered by the deferment, if the 2 children receive more than half their support 3 from the borrower; and 4 ‘‘(D) another individual if, at the time the 5 borrower requests a deferment under this sec- 6 tion, the individual— 7 ‘‘(i) lives with the borrower; 8 ‘‘(ii) receives more than half of the in- 9 dividual’s support (which may include 10 money, gifts, loans, housing, food, clothes, 11 car, medical and dental care, and payment 12 of college costs) from the borrower; and 13 ‘‘(iii) is expected to receive such sup- 14 port from the borrower during the relevant 15 period of deferment. 16 ‘‘(5) FULL-TIME.—The term ‘full-time’, when 17 used with respect to employment, means employment 18 for not less than 30 hours per week that is expected 19 to continue for not less than three months. 20 21 ‘‘(6) MEANS-TESTED term ‘means-tested benefit program’ means— 22 ‘‘(A) a State public assistance program 23 under which eligibility for the program’s bene- 24 fits, or the amount of such benefits, are deter- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BENEFIT PROGRAM.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00355 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 356 1 mined on the basis of income or resources of 2 the individual or family seeking the benefit; or 3 ‘‘(B) a mandatory spending program of the 4 Federal Government, other than a program 5 under this title, under which eligibility for the 6 program’s benefits, or the amount of such bene- 7 fits, are determined on the basis of income or 8 resources of the individual or family seeking the 9 benefit, and may include such programs as 10 ‘‘(i) the supplemental security income 11 program under title XVI of the Social Se- 12 curity Act (42 U.S.C. 1381 et seq.); 13 ‘‘(ii) the supplemental nutrition assist- 14 ance program under the Food and Nutri- 15 tion Act of 2008 (7 U.S.C. 2011 et seq.); 16 ‘‘(iii) the free and reduced price 17 school lunch program established under the 18 Richard B. Russell National School Lunch 19 Act (42 U.S.C. 1751 et seq.); 20 ‘‘(iv) the program of block grants for 21 States for temporary assistance for needy 22 families established under part A of title 23 IV of the Social Security Act (42 U.S.C. 24 601 et seq.); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00356 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 357 1 ‘‘(v) the special supplemental nutri- 2 tion program for women, infants, and chil- 3 dren established by section 17 of the Child 4 Nutrition Act of 1966 (42 U.S.C. 1786); 5 and 6 ‘‘(vi) other programs identified by the 7 Secretary. 8 ‘‘(7) MONTHLY 9 INCOME.—The term ‘monthly gross income’, when used with respect to a 10 borrower, means— 11 ‘‘(A) the gross amount of income received 12 by the borrower from employment and other 13 sources for the most recent month; or 14 ‘‘(B) one-twelfth of the borrower’s adjusted 15 gross income, as recorded on the borrower’s 16 most recently filed Federal income tax return. 17 ‘‘SEC. 471. ADDITIONAL TERMS. 18 ‘‘(a) APPLICABLE PART B PROVISIONS.— 19 ‘‘(1) DISCLOSURES.—Except as otherwise pro- 20 vided in this part, each institution of higher edu- 21 cation with which the Secretary has an agreement 22 under section 464(a), and each contractor with 23 which the Secretary has a contract under section 24 493E, shall, with respect to loans under this part 25 comply with each of the requirements under section g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GROSS 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00357 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 358 1 433 that apply to the institutions of higher edu- 2 cation and contractors described in section 455(p) 3 with respect to loans made under part D. 4 ‘‘(2) OTHER as otherwise 5 provided in this part, the following provisions shall 6 apply with respect to loans made under this part in 7 the same manner that such provisions apply with re- 8 spect to loans made under part D: 9 ‘‘(A) Section 427(a)(2). 10 ‘‘(B) Section 428(d). 11 ‘‘(C) Section 428F 12 ‘‘(D) Section 430A. 13 ‘‘(E) Paragraphs (1), (2), (4), and (6) of 14 section 432(a). 15 ‘‘(F) Section 432(i). 16 ‘‘(G) Section 432(l). 17 ‘‘(H) Section 432(m), except that an insti- 18 tution of higher education shall have a separate 19 master promissory note under paragraph (1)(D) 20 of such section for loans made under this part. 21 ‘‘(I) Subsections (a), (c), and (d) of section 22 437. 23 ‘‘(3) APPLICATION OF PROVISIONS.—Any provi- 24 sion listed under paragraph (1) or (2) that applies 25 to— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PROVISIONS.—Except 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00358 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 359 1 ‘‘(A) Federal Direct PLUS Loans made on 2 behalf of dependent students shall apply to 3 Federal ONE Parent Loans; 4 ‘‘(B) Federal Direct PLUS Loans made to 5 students shall apply to Federal ONE Loans for 6 graduate or professional students; 7 ‘‘(C) Federal Direct Unsubsidized Stafford 8 loans shall apply to Federal ONE Loans for 9 any student borrower; 10 ‘‘(D) Federal Direct Consolidation Loans 11 shall apply to Federal ONE Consolidation 12 Loans; and 13 ‘‘(E) forbearance shall apply to deferment 14 15 under section 469A. ‘‘(b) ELIGIBLE STUDENT.—A loan under this part 16 may only be made to a student who— 17 ‘‘(1) is an eligible student under section 484; 18 ‘‘(2) has agreed to notify promptly the Sec- 19 retary and the applicable contractors with which the 20 Secretary has a contract under section 493E con- 21 cerning— 22 ‘‘(A) any change of permanent address, 23 telephone number, or email address; 24 ‘‘(B) when the student ceases to be en- 25 rolled on at least a half-time basis; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00359 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 360 1 ‘‘(C) any other change in status, when 2 such change in status affects the student’s eligi- 3 bility for the loan; and 4 ‘‘(3) is carrying at least one-half the normal 5 full-time academic workload for the course of study 6 the student is pursuing (as determined by the insti- 7 tution). 8 ‘‘(c) LOAN APPLICATION AND PROMISSORY NOTE.— 9 The common financial reporting form required in section 10 483(a)(1) shall constitute the application for loans made 11 under this part. The Secretary shall develop, print, and 12 distribute to participating institutions a standard promis13 sory note and loan disclosure form. 14 ‘‘(d) BORROWER DEFENSES.—A borrower of a loan 15 under this part may assert a defense to repayment to such 16 loan under the provisions of section 455(h) that apply to 17 a borrower of a loan made under part D asserting, on or 18 after the date of enactment of the PROSPER Act, a de19 fense to repayment to such loan made under part D. 20 ‘‘(e) IDENTITY FRAUD PROTECTION.—The Secretary 21 shall ensure that monthly Federal ONE Loan statements 22 and other publications of the Department do not contain 23 more than four digits of the Social Security number of 24 any individual. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00360 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 361 1 ‘‘(f) AUTHORITY TO SELL LOANS.—The Secretary, 2 in consultation with the Secretary of the Treasury, is au3 thorized to sell loans made under this part on such terms 4 determined to be in the best interest of the United States, 5 except that any such sale shall not result in any cost to 6 the Federal Government.’’. 7 8 PART F—NEED ANALYSIS SEC. 471. COST OF ATTENDANCE. 9 Section 472 (20 U.S.C. 1087ll) is amended— 10 (1) by striking paragraph (10); and 11 (2) by redesignating paragraphs (11), (12), and 12 (13) as paragraphs (10), (11), and (12), respec- 13 tively. 14 SEC. 472. SIMPLIFIED NEEDS TEST. 15 Section 479(b)(1) (20 U.S.C. 1087ss) is amended by 16 striking ‘‘$50,000’’ both places it appears and inserting 17 ‘‘$100,000’’. 18 SEC. 473. DISCRETION OF STUDENT FINANCIAL AID ADMIN- 19 20 ISTRATORS. Section 479A (20 U.S.C. 1087tt) is amended— 21 (1) in subsection (a), by striking ‘‘financial as- 22 sistance under section 428H or a Federal Direct 23 Unsubsidized Stafford Loan’’ and inserting ‘‘a Fed- 24 eral Direct Unsubsidized Stafford Loan or a Federal 25 ONE Loan’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00361 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 362 1 (2) in subsection (c), by striking ‘‘part B or D’’ 2 and inserting ‘‘part D or E’’; and 3 (3) by adding at the end the following: 4 5 ‘‘(d) ADJUSTMENT BASED STRUCTION.—A ON DELIVERY OF IN- student’s eligibility to receive grants, 6 loans, or work assistance under this title shall be reduced 7 if a financial aid officer determines, in accordance with 8 the discretionary authority provided under this section, 9 that the model or method used to deliver instruction to 10 the student results in a substantially reduced cost of at11 tendance to the student.’’. 12 SEC. 474. DEFINITIONS OF TOTAL INCOME AND ASSETS. 13 Section 480 (20 U.S.C. 1087vv) is amended— 14 15 (1) in subsection (a)(1), by striking subparagraph (B) and inserting the following: 16 ‘‘(B) Notwithstanding section 478(a), the 17 Secretary shall provide for the use of data from 18 the second preceding tax year to carry out the 19 simplification of applications (including sim- 20 plification for a subset of applications) used for 21 the estimation and determination of financial 22 aid eligibility. Such simplification shall include 23 the sharing of data between the Internal Rev- 24 enue Service and the Department, pursuant to 25 the consent of the taxpayer.’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00362 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 363 1 (2) in subsection (f)— 2 (A) in paragraph (2)— 3 (i) in subparagraph (B), by striking 4 ‘‘or’’ at the end; 5 (ii) in subparagraph (C), by striking 6 the period at the end and inserting ‘‘; or’’; 7 and 8 (iii) by adding at the end the fol- 9 lowing: 10 ‘‘(D) a qualified tuition program (as de- 11 fined in section 529(b)(1)(A) of the Internal 12 Revenue Code of 1986).’’; and 13 (B) in paragraph (5)(A)(i), by striking 14 ‘‘qualified tuition program (as defined in sec- 15 tion 529(b)(1)(A) of the Internal Revenue Code 16 of 1986) or other’’. 17 PART G—GENERAL PROVISIONS RELATING TO 18 STUDENT ASSISTANCE 19 SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE 20 21 PROGRAM. Section 481 (20 U.S.C. 1088) is amended— 22 (1) in subsection (a)— 23 (A) in paragraph (2)(A)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00363 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 364 1 (i) by striking ‘‘For the’’ and insert- 2 ing the following: ‘‘Except as provided in 3 paragraph (3), for the’’; and 4 (ii) in clause (i), by striking ‘‘require 5 a minimum of 30 weeks’’ and inserting the 6 following: ‘‘require— 7 ‘‘(I) a minimum of 30 weeks’’; 8 (iii) in clause (ii), by striking ‘‘re- 9 quire’’; 10 (iv) by redesignating clause (ii) as 11 subclause (II); and 12 (v) by redesignating clause (iii) as 13 clause (ii); and 14 (B) by adding at the end the following: 15 ‘‘(3)(A) For the purpose of a competency-based 16 education program the term ‘academic year’ shall be 17 the published measured period established by the in- 18 stitution of higher education that is necessary for a 19 student with a normal full-time workload for the 20 course of study the student is pursuing (as meas- 21 ured using the value of competencies or sets of com- 22 petencies required by such institution and approved 23 by such institution’s accrediting agency or associa- 24 tion) to earn— 25 ‘‘(i) one-quarter of a bachelor’s degree; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00364 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 365 1 ‘‘(ii) one-half of an associate’s degree; or 2 ‘‘(iii) with respect to a non-degree or graduate 3 program, the equivalent of a period described in 4 clause (i) or (ii). 5 ‘‘(B)(i) A competency-based education pro- 6 gram that is not a term-based program may be 7 treated as a term-based program for purposes 8 of establishing payment periods for disburse- 9 ment of loans and grants under this title if— 10 ‘‘(I) the institution of higher edu- 11 cation that offers such program charges a 12 flat subscription fee for access to instruc- 13 tion during a period determined by the in- 14 stitution; and 15 ‘‘(II) the institution is able to deter- 16 mine the competencies a student is ex- 17 pected to demonstrate for such subscrip- 18 tion period. 19 ‘‘(ii) Clause (i) shall apply even in a case 20 in which instruction or other work with respect 21 to a competency that is expected to be attrib- 22 utable to a subscription period begins prior to 23 such subscription period. 24 ‘‘(iii) In a case in which a competency- 25 based education program offered by an institu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00365 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 366 1 tion of higher education is treated as a term- 2 based program under clause (i), the institution 3 shall review the academic progress of each stu- 4 dent enrolled in such program in accordance 5 with section 484(c), except that such review 6 shall occur at the end of each payment period.’’; 7 (2) by amending subsection (b) to read as fol- 8 lows: 9 ‘‘(b) ELIGIBLE PROGRAM.—(1) For purposes of this 10 title, the term ‘eligible program’ means— 11 ‘‘(A) a program of at least 300 clock hours of 12 instruction, 8 semester hours, or 12 quarter hours, 13 offered during a minimum of 10 weeks; or 14 ‘‘(B) a competency-based program that— 15 ‘‘(i) has been evaluated and approved by 16 an accrediting agency or association that— 17 ‘‘(I) is recognized by the Secretary 18 under subpart 2 of part H; and 19 ‘‘(II) has evaluation of competency- 20 based education programs within the scope 21 of its recognition in accordance with sec- 22 tion 496(a)(4)(C); or 23 ‘‘(ii) as of the day before the date of enact- 24 ment of the PROSPER Act, met the require- 25 ments of a direct assessment program under g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00366 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 367 1 section 481(b)(4) (as such section was in effect 2 on the day before such date of enactment). 3 ‘‘(2) An eligible program described in paragraph (1) 4 may be offered in whole or in part through telecommuni5 cations. 6 ‘‘(3) For purposes of this title, the term ‘eligible pro- 7 gram’ does not include a program that loses its eligibility 8 under section 481B(a). 9 ‘‘(4)(A) If an eligible institution enters into a written 10 arrangement with an institution or organization that is 11 not an eligible institution under which such ineligible insti12 tution or organization provides the educational program 13 (in whole or in part) of students enrolled in the eligible 14 institution, the educational program provided by such in15 eligible institution shall be considered to be an eligible pro16 gram if— 17 ‘‘(i) the ineligible institution or organiza- 18 tion has not— 19 ‘‘(I) had its eligibility to participate in 20 the programs under this title terminated 21 by the Secretary; 22 ‘‘(II) voluntarily withdrawn from par- 23 ticipation in the programs under this title 24 under a proceeding initiated by the Sec- 25 retary, accrediting agency or association, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00367 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 368 1 guarantor, or the licensing agency for the 2 State in which the institution is located, 3 including a termination, show-cause, or 4 suspension; 5 ‘‘(III) had its certification under sub- 6 part 3 of part H to participate in the pro- 7 grams under this title revoked by the Sec- 8 retary; 9 ‘‘(IV) had its application for recertifi- 10 cation under subpart 3 of part H to par- 11 ticipate in the programs under this title 12 denied by the Secretary; or 13 ‘‘(V) had its application for certifi- 14 cation under subpart 3 of part H to par- 15 ticipate in the programs under this title 16 denied by the Secretary; 17 ‘‘(ii) the educational program offered by 18 the institution that grants the degree or certifi- 19 cate otherwise satisfies the requirements of 20 paragraph (1); and 21 ‘‘(iii)(I) the ineligible institution or organi- 22 zation provides 25 percent or less of the edu- 23 cational program; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00368 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 369 1 ‘‘(II)(aa) the ineligible institution or orga- 2 nization provides more than 25 percent of the 3 educational program; and 4 ‘‘(bb) the eligible institution’s accrediting 5 agency or association has determined that the 6 eligible institution’s arrangement meets the 7 agency’s standards for the contracting out of 8 educational services in accordance with section 9 496(c)(5)(B)(iv). 10 ‘‘(B) For purposes of subparagraph (A), the term ‘el- 11 igible institution’ means an institution described in section 12 487(a).’’; and 13 (3) in subsection (c)(2), by striking ‘‘part B 14 15 of’’. SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES. 16 Part G of title IV (20 U.S.C. 1088 et seq. is amend- 17 ed, as amended by section 481, is further amended by in18 serting after section 481A (20 U.S.C. 1088a) the fol19 lowing: 20 ‘‘SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES. 21 ‘‘(a) INELIGIBILITY OF AN EDUCATIONAL PROGRAM 22 BASED ON LOW REPAYMENT RATES.— 23 ‘‘(1) IN respect to fiscal year 24 2016 and each succeeding fiscal year, an educational 25 program at an institution of higher education whose g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—With 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00369 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 370 1 loan repayment rate is less than 45 percent for each 2 of the 3 most recent fiscal years for which data are 3 available shall not be considered an eligible program 4 for the fiscal year in which the determination is 5 made and for the 2 succeeding fiscal years, unless, 6 not later than 30 days after receiving notification 7 from the Secretary of the loss of eligibility under 8 this paragraph, the institution appeals the loss of 9 such program’s eligibility to the Secretary. 10 ‘‘(2) APPEAL.—The Secretary shall issue a de- 11 cision on any such appeal within 45 days after its 12 submission. Such decision may permit a program to 13 be considered an eligible program, if— 14 ‘‘(A) the institution demonstrates to the 15 satisfaction of the Secretary that— 16 ‘‘(i) the Secretary’s calculation of 17 such program’s loan repayment rate is not 18 accurate; and 19 ‘‘(ii) recalculation would increase such 20 program’s loan repayment rate for any of 21 the 3 fiscal years equal to or greater than 22 45 percent; or 23 ‘‘(B) the program is not subject to para- 24 graph (1) by reason of paragraph (3). 25 ‘‘(3) PARTICIPATION g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 RATE INDEX.— (680541 26) PO 00000 Frm 00370 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 371 1 ‘‘(A) IN GENERAL.—An 2 demonstrates to the Secretary that a program’s 3 participation rate index is equal to or less than 4 0.11 for any of the 3 most recent fiscal years 5 for which data is available shall not be subject 6 to paragraph (1). 7 ‘‘(B) INDEX CALCULATION.—The partici- 8 pation rate index for a program shall be deter- 9 mined by multiplying— 10 ‘‘(i) the amount of the difference be- 11 tween— 12 ‘‘(I) 1.0; and 13 ‘‘(II) the quotient that results by 14 dividing— 15 ‘‘(aa) the program’s loan re- 16 payment rate for a fiscal year, or 17 the weighted average loan repay- 18 ment rate for a fiscal year, by 19 ‘‘(bb) 100; and 20 ‘‘(ii) the quotient that results by di- 21 viding— 22 ‘‘(I) the percentage of the pro- 23 gram’s regular students, enrolled on 24 at least a half-time basis, who re- 25 ceived a covered loan for a 12-month g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 institution that 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00371 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 372 1 period ending during the 6 months 2 immediately preceding the fiscal year 3 for which the program’s loan repay- 4 ment rate or the weighted average 5 loan repayment rate is determined, by 6 ‘‘(II) 100. 7 ‘‘(C) DATA.—An institution shall provide 8 the Secretary with sufficient data to determine 9 the program’s participation rate index not later 10 than 30 days after receiving an initial notifica- 11 tion of the program’s draft loan repayment rate 12 under subsection (d)(4)(C). 13 ‘‘(D) NOTIFICATION.—Prior to publication 14 of a final loan repayment rate under subsection 15 (d)(4)(A) for a program at an institution that 16 provides the data described in subparagraph 17 (C), the Secretary shall notify the institution of 18 the institution’s compliance or noncompliance 19 with subparagraph (A). 20 ‘‘(b) REPAYMENT IMPROVEMENT 21 OF ELIGIBILITY BASED ON AND ASSESSMENT LOW LOAN REPAYMENT 22 RATES.— 23 ‘‘(1) FIRST 24 ‘‘(A) IN 25 08:59 Dec 01, 2017 GENERAL.—An institution with a program whose loan repayment rate is less than g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 YEAR.— Jkt 000000 (680541 26) PO 00000 Frm 00372 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 373 1 45 percent for any fiscal year shall establish a 2 repayment improvement task force to prepare a 3 plan to— 4 ‘‘(i) identify the factors causing such 5 program’s loan repayment rate to fall 6 below such percent; 7 ‘‘(ii) establish measurable objectives 8 and the steps to be taken to improve the 9 program’s loan repayment rate; and 10 ‘‘(iii) specify actions that the institu- 11 tion can take to improve student loan re- 12 payment, including appropriate counseling 13 regarding loan repayment options. 14 ‘‘(B) TECHNICAL in- 15 stitution subject to this paragraph shall submit 16 the plan under subparagraph (A) to the Sec- 17 retary, who shall review the plan and offer tech- 18 nical assistance to the institution to promote 19 improved student loan repayment. 20 ‘‘(2) SECOND 21 ‘‘(A) IN CONSECUTIVE YEAR.— GENERAL.—An institution with a 22 program whose loan repayment rate is less than 23 45 percent for two consecutive fiscal years, 24 shall— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ASSISTANCE.—Each 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00373 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 374 1 ‘‘(i) require the institution’s repay- 2 ment improvement task force established 3 under paragraph (1) to review and revise 4 the plan required under such paragraph; 5 and 6 ‘‘(ii) submit such revised plan to the 7 Secretary. 8 ‘‘(B) REVIEW 9 Secretary— 10 ‘‘(i) shall review each revised plan 11 submitted in accordance with this para- 12 graph; and 13 ‘‘(ii) may direct that such plan be 14 amended to include actions, with measur- 15 able objectives, that the Secretary deter- 16 mines, based on available data and anal- 17 yses of student loan repayment and non-re- 18 payment, will promote student loan repay- 19 ment. 20 21 ‘‘(c) PROGRAMMATIC LOAN REPAYMENT RATE DEFINED.— 22 ‘‘(1) IN GENERAL.—Except as provided in sub- 23 section (d), for purposes of this section, the term 24 ‘loan repayment rate’ means, when used with respect 25 to an educational program at an institution— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 BY THE SECRETARY.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00374 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 375 1 ‘‘(A) with respect to any fiscal year in 2 which 30 or more current and former students 3 in such program enter repayment on a covered 4 loan received for attendance in such program, 5 the percentage of such current and former stu- 6 dents— 7 ‘‘(i) who enter repayment in such fis- 8 cal year on a covered loan received for at- 9 tendance in such program; and 10 ‘‘(ii) who are in a positive repayment 11 status on each such covered loan at the 12 end of the second fiscal year following the 13 fiscal year in which such students entered 14 repayment on such loan; and 15 ‘‘(B) with respect to any fiscal year in 16 which fewer than 30 of the current and former 17 students in such program enter repayment on a 18 covered loan received for attendance in such 19 program, the percentage of such current and 20 former students— 21 ‘‘(i) who, in any of the three most re- 22 cent fiscal years, entered repayment on a 23 covered loan received for attendance in 24 such program; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00375 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 376 1 ‘‘(ii) who are in a positive repayment 2 status on each such covered loan at the 3 end of the second fiscal year following the 4 fiscal year in which such students entered 5 repayment on such loan. 6 ‘‘(2) GUARANTY 7 Secretary shall require that each guaranty agency 8 that has insured loans for current or former stu- 9 dents of the institution afford such institution a rea- 10 sonable opportunity (as specified by the Secretary) 11 to review and correct errors in the information re- 12 quired to be provided to the Secretary by the guar- 13 anty agency for the purposes of calculating a loan 14 repayment rate for programs at such institution, 15 prior to the calculation of such rate. 16 ‘‘(3) POSITIVE REPAYMENT STATUS.—For pur- 17 poses of this section, the term ‘positive repayment 18 status’, when used with respect to a borrower of a 19 covered loan, means— 20 ‘‘(A) the borrower has entered repayment 21 on such loan, and such loan is less than 90 22 days delinquent; 23 ‘‘(B) the loan is paid in full (but not 24 through consolidation); or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AGENCY REQUIREMENTS.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00376 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 377 1 ‘‘(C) with respect to a covered loan that is 2 a Federal ONE Loan, the loan is in a 3 deferment described in 469A(b)(1), and with 4 respect to a covered loan made, insured, or 5 guaranteed under part B or made under part 6 D, the loan is in a deferment or forbearance 7 that is comparable to a deferment described in 8 469A(b)(1). 9 ‘‘(4) COVERED 10 purposes of this section— 11 ‘‘(A) the term ‘covered loan’ means— 12 ‘‘(i) a loan made, insured, or guaran- 13 teed under section 428 or 428H; 14 ‘‘(ii) a Federal Direct Stafford Loan; 15 ‘‘(iii) a Federal Direct Unsubsidized 16 Stafford Loan; 17 ‘‘(iv) a Federal Direct PLUS Loan 18 issued to a graduate or professional stu- 19 dent; 20 ‘‘(v) a Federal ONE Loan; or 21 ‘‘(vi) the portion of a loan made under 22 section 428C, a Federal Direct Consolida- 23 tion Loan, or a Federal ONE Consolida- 24 tion Loan that is used to repay any loan 25 described in clauses (i) through (v); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 LOAN.—For 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00377 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 378 1 ‘‘(B) the term ‘covered loan’ does not in- 2 clude a loan described in subparagraph (A) that 3 has been discharged under section 437(a). 4 ‘‘(d) SPECIAL RULES.— 5 ‘‘(1) IN the case of a student 6 who has attended and borrowed at more than one 7 institution of higher education or for more than one 8 educational program at an institution, the student 9 (and such student’s subsequent positive repayment 10 status on a covered loan, if applicable)) shall be at- 11 tributed to each institution of higher education and 12 educational program for attendance at which the 13 student received a loan that entered repayment for 14 the fiscal year for which the loan repayment rate is 15 being calculated. 16 ‘‘(2) DELINQUENT.—A loan on which a pay- 17 ment is made by an institution of higher education, 18 such institutions’s owner, agent, contractor, em- 19 ployee, or any other entity or individual affiliated 20 with such institution, in order to prevent the bor- 21 rower from being more than 90 days delinquent on 22 the loan, shall be considered more than 90 days de- 23 linquent for purposes of this subsection. 24 25 ‘‘(3) REGULATIONS 08:59 Dec 01, 2017 TO PREVENT EVASIONS.— The Secretary shall prescribe regulations designed to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—In Jkt 000000 (680541 26) PO 00000 Frm 00378 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 379 1 prevent an institution of higher education from evad- 2 ing the application of a loan repayment rate deter- 3 mination under this section to an educational pro- 4 gram at such institution through— 5 ‘‘(A) the use of such measures as branch- 6 ing, consolidation, change of ownership or con- 7 trol, or any similar device; or 8 ‘‘(B) creating a new educational program 9 that is substantially similar to a program deter- 10 mined to be ineligible under subsection (a). 11 ‘‘(4) COLLECTION 12 REPAYMENT RATES.— 13 ‘‘(A) IN GENERAL.—The Secretary shall 14 publish not less often than once every fiscal 15 year a report showing final loan repayment 16 data for each program at each institution of 17 higher education for which a loan repayment 18 rate is calculated under this section. 19 ‘‘(B) PUBLICATION.—The Secretary shall 20 publish the report described in subparagraph 21 (A) by September 30 of each year. 22 ‘‘(C) DRAFTS.— 23 ‘‘(i) IN GENERAL.—The Secretary 24 shall provide institutions with draft loan 25 repayment rates for each educational pro- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND REPORTING OF LOAN 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00379 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 380 1 gram at the institution at least 6 months 2 prior to the release of the final rates under 3 subparagraph (A). 4 ‘‘(ii) CHALLENGE 5 An institution may challenge a program’s 6 draft loan repayment rate provided under 7 clause (i) for any fiscal year by dem- 8 onstrating to the satisfaction of the Sec- 9 retary that such draft loan repayment rate 10 11 is not accurate. ‘‘(e) TRANSITION PERIOD.— 12 ‘‘(1) DURING THE TRANSITION PERIOD.—Dur- 13 ing the transition period, the cohort default rate for 14 each institution of higher education shall be cal- 15 culated under section 435(m)(1) for each fiscal year 16 for which such rate has not yet been calculated and 17 any requirements with respect to such rates shall 18 continue to apply, except that the loans with respect 19 to which such cohort default rate shall be calculated 20 shall be the covered loans defined in subsection 21 (c)(4). 22 ‘‘(2) AFTER THE TRANSITION PERIOD.—After 23 the transition period, no new cohort default rates 24 shall be calculated for an institution of higher edu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF DRAFT RATES.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00380 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 381 1 cation and any requirements with respect to such 2 rates shall cease to apply. 3 ‘‘(3) DEFINITIONS.—For purposes of this sub- 4 section— 5 ‘‘(A) the term ‘cohort default rate’ has the 6 meaning given the term in section 435(m); and 7 ‘‘(B) the term ‘transition period’ means 8 the period— 9 ‘‘(i) beginning on the date of enact- 10 ment of the PROSPER Act; and 11 ‘‘(ii) ending on the date on which the 12 Secretary has published under subsection 13 (d)(4)(A) the final loan repayment rate for 14 each program at each institution of higher 15 education with respect to each of fiscal 16 years 2016, 2017, and 2018.’’. 17 SEC. 483. MASTER CALENDAR. 18 Section 482 (20 U.S.C. 1089) is amended— 19 (1) in subsection (a)— 20 (A) in paragraph (1)— 21 (i) in subparagraph (A), by striking 22 ‘‘February 1’’ and inserting ‘‘January 15’’; 23 (ii) in subparagraph (B), by striking 24 ‘‘March 1’’ and inserting ‘‘February 1’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00381 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 382 1 (iii) in subparagraph (C), by striking 2 ‘‘June 1’’ and inserting ‘‘May 1’’; 3 (iv) in subparagraph (D), by striking 4 ‘‘August 15’’ and inserting ‘‘July 15’’; 5 (v) by striking subparagraph (E), and 6 redesignating subparagraphs (F) and (G) 7 as subparagraphs (E) and (F), respec- 8 tively; and 9 (vi) in subparagraph (E), as so redes- 10 ignated, by striking ‘‘October 1’’ and in- 11 serting ‘‘September 1’’; and 12 (vii) in subparagraph (F), as so redes- 13 ignated, by striking ‘‘November 1’’ and in- 14 serting ‘‘October 1’’; 15 (B) in paragraph (2)— 16 (i) in subparagraph (F), by striking 17 ‘‘and final Pell Grant payment schedule’’; 18 (ii) in subparagraph (J), by striking 19 ‘‘June 1’’ and inserting ‘‘May 1’’; 20 (iii) by redesignating subparagraphs 21 (C) through (J) as subparagraphs (D) 22 through (K), respectively; and 23 (iv) by inserting after subparagraph 24 (B) the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00382 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 383 1 ‘‘(C) by November 1: final Pell Grant pay- 2 ment schedule;’’; and 3 (2) in subsection (b)— 4 (A) by striking ‘‘413D(d), 442(d), or 5 462(i)’’ and inserting ‘‘442(d)’’; and 6 (B) by striking ‘‘the programs under sub- 7 part 3 of part A, part C, and part E, respec- 8 tively’’ and inserting ‘‘part C’’. 9 SEC. 484. FAFSA SIMPLIFICATION. 10 (a) IN GENERAL.—Section 483 (20 U.S.C. 1090) is 11 amended— 12 13 (1) in subsection (a)(3), by adding at the end the following: 14 ‘‘(I) FORMAT.—Not later than 1 year after 15 the date of the enactment of the PROSPER 16 Act, the Secretary shall make the electronic 17 version of the forms under this paragraph avail- 18 able through a technology tool optimized for use 19 on mobile devices. Such technology tool shall, at 20 minimum, enable applicants to— 21 ‘‘(i) save data; and 22 ‘‘(ii) submit the FAFSA of such appli- 23 cant to the Secretary through such tool. 24 ‘‘(J) CONSUMER 25 08:59 Dec 01, 2017 developing and maintaining the electronic version of the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TESTING.—In Jkt 000000 (680541 26) PO 00000 Frm 00383 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 384 1 forms under this paragraph and the technology 2 tool for mobile devices under subparagraph (I), 3 the Secretary shall conduct consumer testing 4 with appropriate persons to ensure the forms 5 and technology tool are designed to be easily 6 usable and understandable by students and 7 families. Such consumer testing shall include— 8 ‘‘(i) current and prospective college 9 students, family members of such students, 10 and other individuals with expertise in stu- 11 dent financial assistance application proc- 12 esses; 13 ‘‘(ii) dependent students and inde- 14 pendent students who meet the require- 15 ments under subsection (b) or (c) of sec- 16 tion 479; and 17 ‘‘(iii) dependent students and inde- 18 pendent students who do not meet the re- 19 quirements under subsection (b) or (c) of 20 section 479.’’; and 21 (2) by amending subsection (f) to read as fol- 22 lows: 23 ‘‘(f) USE OF INTERNAL REVENUE SERVICE DATA 24 RETRIEVAL TOOL TO POPULATE FAFSA.— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00384 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 385 1 ‘‘(1) 2 retary shall— EFFORTS.—The Sec- 3 ‘‘(A) make every effort to allow applicants 4 to utilize the current data retrieval tool to 5 transfer, through a rigorous authentication 6 process, data available from the Internal Rev- 7 enue Service to reduce the amount of original 8 data entry by applicants and strengthen the re- 9 liability of data used to calculate expected fam- 10 ily contributions, including through the use of 11 technology to— 12 ‘‘(i) allow an applicant to automati- 13 cally populate the electronic version of the 14 forms under this paragraph with data 15 available from the Internal Revenue Serv- 16 ice; and 17 ‘‘(ii) direct an applicant to appro- 18 priate questions on such forms based on 19 the applicant’s answers to previous ques- 20 tions; and 21 ‘‘(B) allow single taxpayers, married tax- 22 payers filing jointly, and married taxpayers fil- 23 ing separately to utilize the current data re- 24 trieval tool to its full capacity. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 SIMPLIFICATION 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00385 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 386 1 ‘‘(2) USE OF TAX RETURN IN APPLICATION 2 PROCESS.—The 3 whether data provided by the Internal Revenue Serv- 4 ice can be used to generate an expected family con- 5 tribution without additional action on the part of the 6 student and taxpayer. 7 Secretary shall continue to examine ‘‘(3) REPORTS ON FAFSA SIMPLIFICATION EF- 8 FORTS.—Not 9 Secretary shall report to the authorizing committees 10 less than once every other year, the on— 11 ‘‘(A) the progress of the simplification ef- 12 forts under this subsection; and 13 ‘‘(B) the security of the data retrieval 14 tool.’’. 15 (b) TECHNICAL AMENDMENT.—Section 483(a)(9)(C) 16 (20 U.S.C. 1090(a)(9)(C)) is amended by inserting ‘‘, in17 cluding through the tool described in section 485E(c)’’ be18 fore the semicolon. 19 SEC. 485. STUDENT ELIGIBILITY. 20 Section 484 (20 U.S.C. 1091) is amended— 21 (1) in subsection (a)— 22 (A) in paragraph (1), by striking ‘‘a de- 23 gree, certificate, or other program (including a 24 program of study abroad approved for credit by 25 the eligible institution at which such student is g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00386 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 387 1 enrolled) leading to a’’ and inserting ‘‘an eligi- 2 ble program (including a program of study 3 abroad approved for credit by the eligible insti- 4 tution at which such student is enrolled) lead- 5 ing to a degree, certificate, or other’’; and 6 (B) in paragraph (3), by inserting ‘‘ as in 7 effect on the day before the date of enactment 8 of the PROSPER Act and pursuant to section 9 461(a) of such Act,’’ after ‘‘part E,’’; 10 (2) in subsection (b)— 11 (A) in paragraph (3)(B), by striking ‘‘part 12 B or D’’ and inserting ‘‘part B, D, or E’’; and 13 (B) by adding at the end the following: 14 ‘‘(6) For purposes of competency-based education, in 15 order to be eligible to receive any loan under this title for 16 an award year, a student may be enrolled in coursework 17 attributable only to 2 academic years within the award 18 year.’’; 19 (3) in subsection (c)— 20 (A) in paragraph (1)— 21 (i) in subparagraph (A)— 22 (I) by inserting ‘‘least as fre- 23 quently as’’ before ‘‘the end of each’’; 24 and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00387 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 388 1 (II) by striking ‘‘, and’’ at the 2 end and inserting a semicolon; 3 (ii) in subparagraph (B)— 4 (I) by striking ‘‘the student has a 5 cumulative’’ and inserting the fol- 6 lowing: ‘‘the student has— 7 ‘‘(i) a cumulative’’; 8 (II) by striking ‘‘the second’’ and 9 inserting ‘‘each’’; 10 (III) by striking the period at the 11 end and inserting ‘‘; or’’ ; and 12 (IV) by adding at the end the fol- 13 lowing: 14 ‘‘(ii) for the purposes of competency- 15 based programs, a non-grade equivalent 16 demonstration of academic standing con- 17 sistent with the requirements for gradua- 18 tion, as determined by the institution, at 19 the end of each such academic year; and’’; 20 and 21 (iii) by adding at the end the fol- 22 lowing: 23 24 ‘‘(C) the student maintains a pace in his or her educational program that— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00388 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 389 1 ‘‘(i) ensures that the student completes the 2 program within the maximum timeframe; and 3 ‘‘(ii) is measured by a method determined 4 by the institution which may be based on credit 5 hours, clock hours, or competencies com- 6 pleted.’’; 7 (B) in paragraph (2), by striking ‘‘grading 8 period’’ and inserting ‘‘evaluation period’’; and 9 (C) by adding at the end the following: 10 ‘‘(4) For purposes of this subsection, the term ‘max- 11 imum timeframe’ means— 12 ‘‘(A) with respect to an undergraduate program 13 measured in credit hours, a period that is no longer 14 than 150 percent of the published length of the edu- 15 cational program, as measured in credit hours; 16 ‘‘(B) with respect to an undergraduate program 17 measured in competencies, a period that is no longer 18 than 150 percent of the published length of the edu- 19 cational program, as measured in competencies; 20 ‘‘(C) with respect to an undergraduate program 21 measured in clock hours, a period that is no longer 22 than 150 percent of the published length of the edu- 23 cational program, as measured by the cumulative 24 number of clock hours the student is required to 25 complete and expressed in calendar time; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00389 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 390 1 ‘‘(D) with respect to a graduate program, a pe- 2 riod defined by the institution that is based on the 3 length of the educational program.’’; 4 (4) by amending subsection (d) to read as fol- 5 lows: 6 ‘‘(d) ADDITIONAL STUDENT ELIGIBILITY.— 7 ‘‘(1) ABILITY BENEFIT STUDENTS.—In 8 order for a student who does not have a certificate 9 of graduation from a school providing secondary 10 education, or the recognized equivalent of such cer- 11 tificate, to be eligible for any assistance under sub- 12 part 1 of part A and parts C, D, and E of this title, 13 the student shall be determined by the institution of 14 higher education as having the ability to benefit 15 from the education offered by the institution of high- 16 er education upon satisfactory completion of 6 credit 17 hours or the equivalent coursework that are applica- 18 ble toward a degree or certificate offered by the in- 19 stitution of higher education. 20 ‘‘(2) HOMESCHOOL STUDENTS.—A student who 21 has completed a secondary school education in a 22 home school setting that is treated as a home school 23 or private school under State law shall be eligible for 24 assistance under subpart 1 of part A and parts C, 25 D, and E of this title. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TO 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00390 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 391 1 ‘‘(3) SECONDARY PROVIDED BY 2 NONPROFIT 3 completed a secondary education provided by a 4 school operating as a nonprofit corporation that of- 5 fers a program of study determined acceptable for 6 admission at an institution of higher education shall 7 be eligible for assistance under subpart 1 of part A 8 and parts C, D, and E of this title’’. CORPORATIONS.—A student who has 9 (5) in subsection (f)(1), by striking ‘‘or part E’’ 10 both places it appears and inserting the following: ‘‘, 11 part E (as in effect on the day before the date of 12 enactment of the PROSPER Act and pursuant to 13 section 461(a) of such Act), or part E (as in effect 14 on or after the date of enactment of the PROSPER 15 Act)’’; 16 (6) by striking subsection (l); 17 (7) in subsection (n)— 18 (A) by striking ‘‘(n) DATA BASE MATCH- 19 20 ING.—To enforce’’; and inserting the following: ‘‘(n) SELECTIVE SERVICE REGISTRATION.— 21 ‘‘(1) DATA 22 BASE MATCHING.—To enforce’’; and (B) by adding at the end the following: 23 ‘‘(2) EFFECT OF FAILURE TO REGISTER FOR 24 SELECTIVE SERVICE.—A 25 age or older shall not be ineligible for assistance or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EDUCATION 08:59 Dec 01, 2017 Jkt 000000 person who is 26 years of (680541 26) PO 00000 Frm 00391 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 392 1 a benefit provided under this title by reason of fail- 2 ure to present himself for, and submit to, registra- 3 tion under section 3 of the Military Selective Service 4 Act (50 U.S.C. 3802).’’; and 5 (8) by redesignating subsections (m) through 6 7 (t) as subsections (l) through (s). SEC. 486. STATUTE OF LIMITATIONS. 8 Section 484A (20 U.S.C. 1088) is amended— 9 (1) in subsection (a)(2)(C)— 10 (A) by striking ‘‘or section 463(a)’’ and in- 11 serting ‘‘, section 463(a) (as in effect on the 12 day before the date of enactment of the PROS- 13 PER Act and pursuant to section 461(a) of 14 such Act), or section 463 (as in effect on or 15 after the date of enactment of the PROSPER 16 Act)’’; and 17 (B) by striking ‘‘or E’’ and inserting ‘‘, E 18 (as in effect on the day before the date of en- 19 actment of the PROSPER Act and pursuant to 20 section 461(a) of such Act), or E (as in effect 21 on or after the date of enactment of the PROS- 22 PER Act)’’; and 23 (2) in subsection (b)— 24 (A) by striking ‘‘and’’ at the end of para- 25 graph (2); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00392 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 393 1 (B) in paragraph (3)— 2 (i) by inserting ‘‘(as in effect on the 3 day before the date of enactment of the 4 PROSPER Act and pursuant to section 5 461(a) of such Act)’’ after ‘‘part E’’; 6 (ii) by inserting ‘‘(as so in effect)’’ 7 after ‘‘section 463(a)’’; and 8 (iii) by adding ‘‘and’’ at the end; and 9 (C) by adding at the end the following: 10 ‘‘(4) in collecting any obligation arising from a 11 loan made under part E (as in effect on or after the 12 date of enactment of the PROSPER Act), an insti- 13 tution of higher education that has an agreement 14 with the Secretary pursuant to section 463(a) (as so 15 in effect) shall not be subject to a defense raised by 16 any borrower based on a claim of infancy.’’. 17 SEC. 487. INSTITUTIONAL REFUNDS. 18 Section 484B (20 U.S.C. 1091b) is amended— 19 (1) in subsection (a)— 20 (A) in paragraph (1)— 21 (i) by striking ‘‘If a recipient’’ and in- 22 serting the following: 23 ‘‘(A) CONSEQUENCE 24 a recipient’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 OF WITHDRAWAL.—If Jkt 000000 (680541 26) PO 00000 Frm 00393 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 394 1 (ii) by adding at the end the fol- 2 lowing: 3 ‘‘(B) SPECIAL 4 purposes of subparagraph (A), a student— 5 ‘‘(i) who is enrolled in a program of- 6 fered in modules is not considered with- 7 drawn if the change in the student’s at- 8 tendance constitutes a change in enroll- 9 ment status within the payment period 10 rather than a discontinuance of attendance 11 within the payment period; and 12 ‘‘(ii) is considered withdrawn if the 13 student follows the institution’s official 14 withdrawal procedures or leaves without 15 notifying the institution and has not re- 16 turned before the end of the payment pe- 17 riod.’’; 18 (B) in paragraph (3)— 19 (i) in subparagraph (B), by striking 20 clauses (i) and (ii) and inserting the fol- 21 lowing: 22 ‘‘(i) 0 percent, if the day the student 23 withdrew occurs when the student has 24 completed (as determined in accordance g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RULE.—For 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00394 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 395 1 with subsection (d)) 0 to 24 percent of the 2 payment period or period of enrollment; 3 ‘‘(ii) 25 percent, if the day the stu- 4 dent withdrew occurs when the student has 5 completed (as determined in accordance 6 with subsection (d)) 25 to 49 percent of 7 the payment period or period of enroll- 8 ment; 9 ‘‘(iii) 50 percent, if the day the stu- 10 dent withdrew occurs when the student has 11 completed (as determined in accordance 12 with subsection (d)) 50 to 74 percent of 13 the payment period or period of enroll- 14 ment; or 15 ‘‘(iv) 75 percent, if the day the stu- 16 dent withdrew occurs when the student has 17 completed (as determined in accordance 18 with subsection (d)) 75 to 99 percent of 19 the payment period or period of enroll- 20 ment.’’. 21 (ii) in subparagraph (C)(i), by strik- 22 ing ‘‘subparts 1 and 3 of part A’’ and in- 23 serting ‘‘subpart 1 of part A’’; and 24 (C) in paragraph (4)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00395 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 396 1 (i) in subparagraph (A), by striking 2 ‘‘Secretary), the institution of higher edu- 3 cation shall contact the borrower’’ and in- 4 serting ‘‘Secretary), the institution of high- 5 er education shall have discretion to deter- 6 mine whether all or a portion of the late or 7 post-withdrawal disbursement should be 8 made, under a publicized institutional pol- 9 icy. If the institution of higher education 10 determines that a disbursement should be 11 made, the institution shall contact the bor- 12 rower’’; and 13 (ii) in subparagraph (B) by striking 14 ‘‘institution or the student, or both, as 15 may be required under paragraphs (1) and 16 (2) of subsection (b), to the programs 17 under this title in the order specified in’’ 18 and inserting ‘‘institution, as may be re- 19 quired under paragraph (1) of subsection 20 (b), to the programs under this title in ac- 21 cordance with’’; 22 (2) by amending subsection (b) to read as fol- 23 lows: 24 ‘‘(b) RETURN OF TITLE IV PROGRAM FUNDS.— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00396 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 397 1 ‘‘(1) RESPONSIBILITY 2 The institution shall return not later than 60 days 3 from the determination of withdrawal, in accordance 4 with paragraph (3), the amount of grant and loan 5 assistance awarded under this title that has not been 6 earned by the student, as calculated under sub- 7 section (a)(3)(C). 8 ‘‘(2) RESPONSIBILITY 9 ‘‘(A) IN OF THE STUDENT.— GENERAL.—The student is not re- 10 sponsible to return assistance that has not been 11 earned, except that the institution may require 12 the student to pay to the institution up to 10 13 percent of the amount owed by the institution 14 in paragraph (1). 15 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 16 in this section shall be construed to prevent an 17 institution from enforcing the published institu- 18 tional refund policies of such institution. 19 ‘‘(3) ORDER 20 ‘‘(A) IN OF RETURN OF TITLE IV FUNDS.— GENERAL.—Excess funds returned 21 by the institution in accordance with paragraph 22 (1) shall be credited to awards under subpart 1 23 of part A for the payment period or period of 24 enrollment for which a return of funds is re- 25 quired. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF THE INSTITUTION.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00397 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 398 1 excess 2 funds remain after repaying all outstanding 3 grant amounts, the remaining excess shall be 4 credited in the following order: 5 ‘‘(i) To outstanding balances on loans 6 made under this title to the student or on 7 behalf of the student for the payment pe- 8 riod or period of enrollment for which a re- 9 turn of funds is required. 10 ‘‘(ii) To other assistance awarded 11 under this title for which a return of funds 12 is required.’’; 13 (3) by amending subsection (c) to read as fol- 14 lows: 15 ‘‘(c) WITHDRAWAL DATE.— 16 17 ‘‘(1) IN GENERAL.—In this section, the term ‘day the student withdrew’— 18 ‘‘(A) for institutions not required to take 19 attendance, is the date as determined by the in- 20 stitution that— 21 ‘‘(i) the student began the withdrawal 22 process prescribed and publicized by the 23 institution, or a later date if the student 24 continued attendance despite beginning the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 EXCESSES.—If ‘‘(B) REMAINING 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00398 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 399 1 withdrawal process, but did not then com- 2 plete the payment period; or 3 ‘‘(ii) in the case of a student who does 4 not begin the withdrawal process, the date 5 that is the mid-point of the payment period 6 for which assistance under this title was 7 disbursed or another date documented by 8 the institution; or 9 ‘‘(B) for institutions required to take at- 10 tendance, is determined by the institution from 11 such attendance records. 12 ‘‘(2) SPECIAL para- 13 graph (1), if the institution determines that a stu- 14 dent did not begin the withdrawal process, due to ill- 15 ness, accident, grievous personal loss, or other such 16 circumstances beyond the student’s control, the in- 17 stitution may determine the appropriate withdrawal 18 date under its own defined policies. 19 ‘‘(3) ATTENDANCE.—An institution is required 20 to take attendance if an institution’s accrediting 21 agency or State licensing agency has a requirement 22 that the institution take attendance for all students 23 in an academic program throughout the entire pay- 24 ment period.’’; and 25 (4) by striking subsections (d) and (e). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RULE.—Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00399 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 400 1 SEC. 488. INFORMATION DISSEMINATED TO PROSPECTIVE 2 AND ENROLLED STUDENTS. 3 4 (a) USE OF TION.—Section WEBSITE TO DISSEMINATE INFORMA- 485(a)(1) (20 U.S.C. 1092(a)(1)) is 5 amended in the matter preceding subparagraph (A) by 6 striking the second and third sentences and inserting the 7 following: ‘‘The information required by this section shall 8 be produced and be made readily available to enrolled and 9 prospective students on the institution’s website (or in 10 other formats upon request).’’. 11 12 (b) INFORMATION ON FRINGEMENT.—Section PROHIBITING COPYRIGHT IN485(a)(1)(P) (20 U.S.C. 13 1092(a)(1)(P)) is amended by striking ‘‘, including—’’ 14 and all that follows and inserting a period. 15 16 (c) ELIMINATION OF CERTAIN REPORTING REQUIREMENTS.— 17 18 (1) GENERAL.—Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended— 19 (A) by striking subparagraph (L); 20 (B) by redesignating subparagraphs (M) 21 through (P) as subparagraphs (L) through (O); 22 and 23 (C) by striking subparagraphs (Q) through 24 (V) and inserting the following: 25 ‘‘(P) the fire safety report prepared by the 26 institution pursuant to subsection (i); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 IN 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00400 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 401 1 ‘‘(Q) the link to the institution’s informa- 2 tion on the College Dashboard website operated 3 under section 132.’’. 4 (2) CONFORMING AMENDMENTS.—Section 5 485(a) (20 U.S.C. 1092(a)) is amended by striking 6 paragraphs (3) through (7). 7 (d) EXIT COUNSELING.—Section 485(b) (20 U.S.C. 8 1092(b)) is amended— 9 (1) in paragraph (1)(A)— 10 (A) in the matter preceding clause (i)— 11 (i) by striking ‘‘through financial aid 12 offices 13 ‘‘through the use of an interactive pro- 14 gram, during an exit counseling session 15 that is in-person or online, or through the 16 use of the online counseling tool described 17 in subsection (n)(1)(A)’’; and otherwise’’ and inserting 18 (ii) by inserting ‘‘, as in effect on the 19 day before the date of enactment of the 20 PROSPER Act and pursuant to section 21 461(a) of such Act or made under part E 22 (other than Federal ONE Parent Loans), 23 as in effect on or after the date of enact- 24 ment of the PROSPER Act’’ after ‘‘part 25 E’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 or 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00401 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 402 1 (B) by redesignating clauses (i) through 2 (ix) as clauses (iv) through (xii), respectively; 3 (C) by inserting before clause (iv), as so 4 redesignated, the following: 5 ‘‘(i) a summary of the outstanding 6 balance of principal and interest due on 7 the loans made to the borrower under this 8 title; 9 ‘‘(ii) an explanation of the grace pe- 10 riod preceding repayment and the expected 11 date that the borrower will enter repay- 12 ment; 13 ‘‘(iii) an explanation of cases of inter- 14 est capitalization and that the borrower 15 has the option to pay any interest that has 16 accrued while the borrower was in school 17 or that may accrue during the grace period 18 preceding repayment or during an author- 19 ized period of deferment or forbearance, 20 prior to the capitalization of the interest;’’; 21 (D) in clause (iv), as so redesignated— 22 (i) by striking ‘‘sample information 23 showing the average’’ and inserting ‘‘infor- 24 mation, based on the borrower’s out- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00402 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 403 1 standing balance described in clause (i), 2 showing the borrower’s’’; and 3 (ii) by striking ‘‘of each plan’’ and in- 4 serting ‘‘of at least the standard repay- 5 ment plan and the income-based repay- 6 ment plan under section 466(d)’’; 7 (E) in clause (ix), as so redesignated— 8 (i) by inserting ‘‘decreased credit 9 score,’’ after ‘‘credit reports,’’; and 10 (ii) by inserting ‘‘potential reduced 11 ability to rent or purchase a home or car, 12 potential difficulty in securing employ- 13 ment,’’ after ‘‘Federal law,’’; 14 (F) in clause (x), as so redesignated, by 15 striking ‘‘consolidation loan under section 428C 16 or a’’; 17 (G) in clauses (xi) and (xii), as so redesig- 18 nated, by striking ‘‘and’’ at the end; and 19 (H) by adding at the end the following: 20 ‘‘(xiii) for each of the borrower’s loans 21 made under this title for which the borrower is 22 receiving counseling under this subsection, the 23 contact information for the servicer of the loan 24 and a link to the Website of such servicer; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00403 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 404 1 ‘‘(xiv) an explanation that an individual 2 has a right to annually request a disclosure of 3 information collected by a consumer reporting 4 agency pursuant to section 612(a) of the Fair 5 Credit Reporting Act (15 U.S.C. 1681j(a)).’’; 6 (2) in paragraph (1)(B)— 7 (A) by inserting ‘‘online or’’ before ‘‘in 8 writing’’; and 9 (B) by adding before the period at the end 10 the following: ‘‘, except that in the case of an 11 institution using the online counseling tool de- 12 scribed in subsection (n)(1)(A), the Secretary 13 shall attempt to provide such information to the 14 student in the manner described in subsection 15 (n)(3)(C)’’; and 16 (3) in paragraph (2)(C), by inserting ‘‘, such as 17 the online counseling tool described in subsection 18 (n)(1)(A),’’ after ‘‘electronic means’’. 19 (e) DEPARTMENTAL PUBLICATION OF DESCRIPTIONS 20 OF ASSISTANCE PROGRAMS.—The third sentence of sec- 21 tion 485(d)(1) (20 U.S.C. 1092(d)(1)) is amended by 22 striking ‘‘part D’’ and inserting ‘‘part D or E’’. 23 (f) AMENDMENTS TO CLERY ACT.— 24 25 (1) PREVENTING NAL g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 JUSTICE INTERFERENCE WITH CRIMI- PROCEEDINGS; TIMELY WARNINGS; (680541 26) PO 00000 Frm 00404 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 405 1 CONSISTENCY OF INSTITUTIONAL CRIME REPORT- 2 ING.—Section 3 ed— 4 (A) by striking paragraph (3) and insert- 5 ing the following: 6 ‘‘(3) Each institution participating in any pro- 7 gram under this title, other than a foreign institu- 8 tion of higher education, shall make timely reports 9 to the campus community on crimes described in 10 paragraph (1)(F) that have been reported to campus 11 security officials and pose a serious and continuing 12 threat to other students and employees’ safety. Such 13 reports shall withhold the names of victims as con- 14 fidential and shall be provided in a timely manner, 15 except that an institution may delay issuing a report 16 if the issuance would compromise ongoing law en- 17 forcement efforts, such as efforts to apprehend a 18 suspect. The report shall also include information 19 designed to assist students and employees in staying 20 safe and avoiding similar occurrences to the extent 21 such information is available and appropriate to in- 22 clude. In assessing institutional compliance with this 23 section, the Secretary shall defer to the institution’s 24 determination of whether a particular crime poses a 25 serious and continuing threat to the campus commu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 485(f) (20 U.S.C. 1092(f)) is amend- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00405 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 406 1 nity, and the timeliness of such warning, provided 2 that, in making its decision, the institution acted 3 reasonably and based on the considered professional 4 judgement of campus security officials, based on the 5 facts and circumstances known at the time.’’. 6 (B) by redesignating paragraph (18) as 7 paragraph (20); and 8 (C) by inserting after paragraph (17) the 9 10 following: ‘‘(18) Nothing in this subsection may be construed 11 to prohibit an institution of higher education from delay12 ing the initiation of, or suspending, an investigation or in13 stitutional disciplinary proceeding involving an allegation 14 of sexual assault in response to a request from a law en15 forcement agency or a prosecutor to delay the initiation 16 of, or suspend, the investigation or proceeding, and any 17 delay or suspension of such an investigation or proceeding 18 in response to such a request may not serve as the grounds 19 for any sanction or audit finding against the institution 20 or for the suspension or termination of the institution’s 21 participation in any program under this title. 22 ‘‘(19)(A) Reporting carried out under this subsection 23 shall be conducted in a manner to ensure maximum con24 sistency with the Uniform Crime Reporting Program of 25 the Department of Justice. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00406 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 407 1 ‘‘(B) The Secretary shall require institutions of high- 2 er education to report crime statistics under this section 3 using definitions of such crimes, when available, from the 4 Uniform Crime Reporting Program of the Department of 5 Justice. 6 ‘‘(C) The Secretary shall maintain a publicly avail- 7 able and updated list of all applicable definitions from the 8 Uniform Crime Reporting Program of the Department of 9 Justice. 10 ‘‘(D) With respect to a report under this subsection, 11 in the case of a crime for which no Uniform Crime Report12 ing Program of the Department of Justice definition ex13 ists, the Secretary shall require that institutions of higher 14 education report such crime according to a definition pro15 vided by the Secretary. 16 ‘‘(E) An institution of higher education that reports 17 a crime described in subparagraph (D) shall not be subject 18 to any penalty or fine for reporting inaccuracies or omis19 sions if the institution of higher education can dem20 onstrate that it made a reasonable and good faith effort 21 to report crimes consistent with the definition provided by 22 the Secretary. 23 ‘‘(F) With respect to a report under this subsection, 24 the Secretary shall require institutions of higher education 25 to follow the Hierarchy Rule for reporting crimes under g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00407 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 408 1 the Uniform Crime Reporting Program of the Department 2 of Justice, so as to minimize duplicate reporting and en3 sure greater consistency with national crime reporting sys4 tems.’’. 5 (2) DUE 6 TUTIONAL 7 485(f)(8)(B)(iv)(I) (20 U.S.C. 1092(f)(8)(B)(iv)(I)) 8 is amended to read as follows: DISCIPLINARY PROCEEDINGS.—Section 9 ‘‘(I) the investigation of the allegation 10 and any institutional disciplinary pro- 11 ceeding in response to the allegation shall 12 be prompt, impartial, and fair to both the 13 accuser and the accused by, at a min- 14 imum— 15 ‘‘(aa) providing all parties to the 16 proceeding with adequate written no- 17 tice of the allegation not later than 2 18 weeks prior to the start of any formal 19 hearing or similar adjudicatory pro- 20 ceeding, and including in such notice 21 a description of all rights and respon- 22 sibilities under the proceeding, a 23 statement of all relevant details of the 24 allegation, and a specific statement of 25 the sanctions which may be imposed; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 PROCESS REQUIREMENTS FOR INSTI- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00408 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 409 1 ‘‘(bb) each person 2 against whom the allegation is made 3 with a meaningful opportunity to 4 admit or contest the allegation; 5 ‘‘(cc) ensuring that all parties to 6 the proceeding have access to all ma- 7 terial evidence not later than one week 8 prior to the start of any formal hear- 9 ing 10 or similar adjudicatory pro- ceeding; 11 ‘‘(dd) ensuring that the pro- 12 ceeding is carried out free from con- 13 flicts of interest by ensuring that 14 there is no commingling of adminis- 15 trative or adjudicative roles; and 16 ‘‘(ee) ensuring that the investiga- 17 tion and proceeding shall be con- 18 ducted by officials who receive annual 19 education on issues related to domes- 20 tic violence, dating violence, sexual as- 21 sault, and stalking, and on how to 22 conduct an investigation and an insti- 23 tutional disciplinary proceeding that 24 protects the safety of victims, ensures 25 fairness for both the accuser and the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 providing 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00409 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 410 1 accused, 2 ability;’’. 3 (3) ESTABLISHMENT 4 DENCE 5 CEEDINGS.— 6 FOR promotes account- OF STANDARD OF EVI- INSTITUTIONAL (A) INCLUSION DISCIPLINARY PRO- IN STATEMENT OF POL- 7 ICY.—Section 8 1092(f)(8)(B)) is amended by adding at the 9 end the following new clause: 485(f)(8)(B) (20 U.S.C. 10 ‘‘(viii) The establishment of a standard of 11 evidence that will be used in institutional dis- 12 ciplinary proceedings involving allegations of 13 sexual assault, which may be based on such 14 standards and criteria as the institution con- 15 siders appropriate (including the institution’s 16 culture, history, and mission, the values re- 17 flected in its student code of conduct, and the 18 purpose of the institutional disciplinary pro- 19 ceedings) so long as the standard is not arbi- 20 trary or capricious and is applied consistently 21 throughout all such proceedings.’’. 22 (B) CONFORMING AMENDMENTS.—Section 23 485(f)(8)(B)(iv) (20 U.S.C. 1092(f)(8)(B)(iv)) 24 is amended— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 and 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00410 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 411 1 (i) by striking ‘‘and’’ at the end of 2 subclause (II); 3 (ii) by striking the period at the end 4 of subclause (III) and inserting ‘‘; and’’; 5 and 6 (iii) by adding at the end the fol- 7 lowing new subclause: 8 ‘‘(IV) in the case of a proceeding in- 9 volving an allegation of sexual assault, 10 such proceedings shall be conducted in ac- 11 cordance with the standard of evidence es- 12 tablished by the institution under clause 13 (viii), together with a clear statement de- 14 scribing such standard of evidence.’’. 15 (4) EDUCATION 16 DUCTING INVESTIGATIONS AND INSTITUTIONAL DIS- 17 CIPLINARY 18 U.S.C. 1092(f)(8)) is amended by adding at the end 19 the following new subparagraph: PROCEEDINGS.—Section 485(f)(8) (20 20 ‘‘(D) In consultation with experts from institu- 21 tions of higher education, law enforcement agencies, 22 advocates for sexual assault victims, experts in due 23 process, and other appropriate persons, the Sec- 24 retary shall create and regularly update modules 25 which an institution of higher education may use to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 MODULES FOR OFFICIALS CON- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00411 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 412 1 provide the annual education described in subpara- 2 graph (B)(iv)(I)(ee) for officials conducting inves- 3 tigations and institutional disciplinary proceedings 4 involving allegations described in such subparagraph. 5 If the institution uses such modules to provide the 6 education described in such subparagraph, the insti- 7 tution shall be considered to meet any requirement 8 under such subparagraph or any other Federal law 9 regarding the education provided to officials con- 10 ducting such investigations and proceedings.’’. 11 (g) MODIFICATION 12 CERTAIN REPORTING RE- QUIREMENTS.— 13 (1) FIRE SAFETY.—Section 485(i) (20 U.S.C. 14 1092(i)) is amended to read as follows: 15 ‘‘(i) FIRE SAFETY REPORTS.— 16 ‘‘(1) ANNUAL REPORT.—Each eligible institu- 17 tion participating in any program under this title 18 that maintains on-campus student housing facilities 19 shall, on an annual basis, publish a fire safety re- 20 port, which shall contain information with respect to 21 the campus fire safety practices and standards of 22 that institution, statistics on any fire related inci- 23 dents or injuries, and any preventative measures or 24 technologies. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00412 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 413 1 2 ‘‘(2) RULES in this subsection shall be construed to— 3 ‘‘(A) authorize the Secretary to require 4 particular policies, procedures, programs, or 5 practices by institutions of higher education 6 with respect to fire safety; 7 ‘‘(B) affect section 444 of the General 8 Education Provisions Act (commonly known as 9 the ‘Family Education Rights and Privacy Act 10 of 1974’) or the regulations issued under sec- 11 tion 264 of the Health Insurance Portability 12 and Accountability Act of 1996 (42 U.S.C. 13 1320d-2 note); 14 ‘‘(C) create a cause of action against any 15 institution of higher education or any employee 16 of such an institution for any civil liability; or 17 ‘‘(D) establish any standard of care. 18 ‘‘(3) EVIDENCE.—Notwithstanding any other 19 provision of law, evidence regarding compliance or 20 noncompliance with this subsection shall not be ad- 21 missible as evidence in any proceeding of any court, 22 agency, board, or other entity, except with respect to 23 an action to enforce this subsection.’’. 24 (2) MISSING g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF CONSTRUCTION.—Nothing 08:59 Dec 01, 2017 Jkt 000000 PERSONS PROCEDURES.— (680541 26) PO 00000 Frm 00413 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 414 1 (A) IN 485(j)(1) (20 2 U.S.C. 1092(j)(1)) is amended to read as fol- 3 lows: 4 ‘‘(1) IN GENERAL.—Each institution of higher 5 education that provides on-campus housing and par- 6 ticipates in any program under this title shall estab- 7 lish a missing student policy for students who reside 8 in on-campus housing that, at a minimum, informs 9 each residing student that the institution will notify 10 such student’s designated emergency contact and the 11 appropriate law enforcement agency not later than 12 24 hours after the time that the student is deter- 13 mined missing, and in the case of a student who is 14 under 18 years of age, the institution will notify a 15 custodial parent or guardian.’’. 16 (B) RULE OF CONSTRUCTION.—Section 17 485(j)(2) (20 U.S.C. 1092(j)(2)) is amended— 18 (i) by striking ‘‘or’’ at the end of sub- 19 paragraph (A); 20 (ii) by striking the period at the end 21 of subparagraph (B) and inserting ‘‘; or’’; 22 and 23 (iii) by adding at the end the fol- 24 lowing new subparagraph: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Section 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00414 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 415 1 ‘‘(C) to require an institution of higher 2 education to maintain separate missing student 3 emergency contact information, so long as the 4 institution otherwise has an emergency contact 5 for students residing on campus.’’. 6 (h) ANNUAL COUNSELING.—Section 485(l) (20 7 U.S.C. 1092(l)) is amended to read as follows: 8 ‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 9 ‘‘(1) ANNUAL 10 ‘‘(A) IN GENERAL.—Each eligible institu- 11 tion shall ensure that each individual enrolled 12 at such institution who receives a Federal Pell 13 Grant or a loan made under this title (other 14 than a Federal Direct Consolidation Loan or 15 Federal ONE Consolidation Loan) receives 16 comprehensive information on the terms and 17 conditions of such Federal Pell Grant or loan 18 and the responsibilities the individual has with 19 respect to such Federal Pell Grant or loan. 20 Such information shall be provided, for each 21 award year for which the individual receives 22 such Federal Pell Grant or loan, in a simple 23 and understandable manner— 24 ‘‘(i) during a counseling session con- 25 ducted in person; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 DISCLOSURE REQUIRED.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00415 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 416 1 ‘‘(ii) online, with the individual ac- 2 knowledging receipt of the information; or 3 ‘‘(iii) through the use of the online 4 counseling tool described in subsection 5 (n)(1)(B). 6 ‘‘(B) USE 7 In the case of institutions not using the online 8 counseling 9 (n)(1)(B), the Secretary shall require such in- 10 stitutions to carry out the requirements of sub- 11 paragraph (A)— 12 tool described in subsection ‘‘(i) through the use of interactive 13 programs; 14 ‘‘(ii) during an annual counseling ses- 15 sion that is in-person or online that tests 16 the individual’s understanding of the terms 17 and conditions of the Federal Pell Grant 18 or loan awarded to the student; and 19 ‘‘(iii) using simple and understandable 20 language and clear formatting. 21 ‘‘(2) ALL INDIVIDUALS.—The information to be 22 provided under paragraph (1) to each individual re- 23 ceiving counseling under this subsection shall include 24 the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF INTERACTIVE PROGRAMS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00416 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 417 1 ‘‘(A) An explanation of how the student 2 may budget for typical educational expenses 3 and a sample budget based on the cost of at- 4 tendance for the institution. 5 ‘‘(B) An explanation that an individual has 6 a right to annually request a disclosure of infor- 7 mation collected by a consumer reporting agen- 8 cy pursuant to section 612(a) of the Fair Credit 9 Reporting Act (15 U.S.C. 1681j(a)). 10 ‘‘(C) Based on the most recent data avail- 11 able from the American Community Survey 12 available from the Department of Commerce, 13 the estimated average income and percentage of 14 employment in the State of domicile of the bor- 15 rower for persons with— 16 ‘‘(i) a high school diploma or equiva- 17 lent; 18 ‘‘(ii) some post-secondary education 19 without completion of a degree or certifi- 20 cate; 21 ‘‘(iii) an associate’s degree; 22 ‘‘(iv) a bachelor’s degree; and 23 ‘‘(v) a graduate or professional de- 24 gree. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00417 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 418 1 ‘‘(D) An introduction to the financial man- 2 agement resources provided by the Financial 3 Literacy and Education Commission. 4 ‘‘(3) STUDENTS FEDERAL PELL 5 GRANTS.—The 6 paragraph (1) to each student receiving a Federal 7 Pell Grant shall include the following: 8 information to be provided under ‘‘(A) An explanation of the terms and con- 9 ditions of the Federal Pell Grant. 10 ‘‘(B) An explanation of approved edu- 11 cational expenses for which the student may use 12 the Federal Pell Grant. 13 ‘‘(C) An explanation of why the student 14 may have to repay the Federal Pell Grant. 15 ‘‘(D) An explanation of the maximum 16 number of semesters or equivalent for which the 17 student may be eligible to receive a Federal Pell 18 Grant, and a statement of the amount of time 19 remaining for which the student may be eligible 20 to receive a Federal Pell Grant. 21 ‘‘(E) An explanation that if the student 22 transfers to another institution not all of the 23 student’s courses may be acceptable to apply to- 24 ward meeting specific degree or program re- 25 quirements at such institution, but the amount g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RECEIVING 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00418 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 419 1 of time remaining for which a student may be 2 eligible to receive a Federal Pell Grant, as pro- 3 vided under subparagraph (D), will not change. 4 ‘‘(F) An explanation of how the student 5 may seek additional financial assistance from 6 the institution’s financial aid office due to a 7 change in the student’s financial circumstances, 8 and the contact information for such office. 9 ‘‘(4) BORROWERS LOANS MADE 10 THIS TITLE (OTHER THAN FEDERAL DIRECT PLUS 11 LOANS MADE ON BEHALF OF DEPENDENT STU- 12 DENTS OR FEDERAL ONE PARENT LOANS).—The 13 formation to be provided under paragraph (1) to a 14 borrower of a loan made under this title (other than 15 other than a Federal Direct PLUS Loan made on 16 behalf of a dependent student or a Federal ONE 17 Parent Loan) shall include the following: in- 18 ‘‘(A) To the extent practicable, the effect 19 of accepting the loan to be disbursed on the eli- 20 gibility of the borrower for other forms of stu- 21 dent financial assistance. 22 ‘‘(B) An explanation of the use of the mas- 23 ter promissory note. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RECEIVING 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00419 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 420 1 ‘‘(C) An explanation that the borrower is 2 not required to accept the full amount of the 3 loan offered to the borrower. 4 ‘‘(D) An explanation that the borrower 5 should consider accepting any grant, scholar- 6 ship, or State or Federal work-study jobs for 7 which the borrower is eligible prior to accepting 8 Federal student loans. 9 ‘‘(E) An explanation of treatment of loans 10 made under this title and private education 11 loans in bankruptcy, and an explanation that if 12 a borrower decides to take out a private edu- 13 cation loan— 14 ‘‘(i) the borrower has the ability to se- 15 lect a private educational lender of the bor- 16 rower’s choice; 17 ‘‘(ii) the proposed private education 18 loan may impact the borrower’s potential 19 eligibility for other financial assistance, in- 20 cluding Federal financial assistance under 21 this title; and 22 ‘‘(iii) the borrower has a right— 23 ‘‘(I) to accept the terms of the 24 private education loan within 30 cal- 25 endar days following the date on g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00420 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 421 1 which the application for such loan is 2 approved and the borrower receives 3 the required disclosure documents, 4 pursuant to section 128(e)(6) of the 5 Truth in Lending Act; and 6 ‘‘(II) to cancel such loan within 3 7 business days of the date on which the 8 loan is consummated, pursuant to sec- 9 tion 128(e)(7) of such Act. 10 ‘‘(F) An explanation of the approved edu- 11 cational expenses for which the borrower may 12 use a loan made under this title. 13 ‘‘(G) Information on the annual and aggre- 14 gate loan limits for a loan made under this 15 title. 16 ‘‘(H) Information on interest, including the 17 annual percentage rate of such loan, as cal- 18 culated using the standard 10-year repayment 19 term, and how interest accrues and is capital- 20 ized during periods when the interest is not 21 paid by the borrower. 22 ‘‘(I) The option of the borrower to pay the 23 interest while the borrower is in school. 24 ‘‘(J) The definition of half-time enrollment 25 at the institution, during regular terms and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00421 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 422 1 summer school, if applicable, and the con- 2 sequences of not maintaining at least half-time 3 enrollment. 4 ‘‘(K) An explanation of the importance of 5 contacting the appropriate offices at the institu- 6 tion of higher education if the borrower with- 7 draws prior to completing the borrower’s pro- 8 gram of study so that the institution can pro- 9 vide exit counseling, including information re- 10 garding the borrower’s repayment options and 11 loan consolidation. 12 ‘‘(L) For a first-time borrower or a bor- 13 rower of a loan under this title who owes no 14 principal or interest on such loan— 15 ‘‘(i) a statement of the anticipated 16 balance on the loan for which the borrower 17 is receiving counseling under this sub- 18 section; 19 ‘‘(ii) based on such anticipated bal- 20 ance, the anticipated monthly payment 21 amount under, at minimum— 22 ‘‘(I) 23 plan; and standard repayment 24 ‘‘(II) an income-based repayment 25 plan under section 466(d) or 493C, as g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 the 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00422 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 423 1 determined using available percentile 2 data from the Bureau of Labor Sta- 3 tistics of the starting salary for the 4 occupation in which the borrower has 5 an interest in or intends to be em- 6 ployed; and 7 ‘‘(iii) an estimate of the projected 8 monthly payment amount under each re- 9 payment plan described in clause (ii), 10 based on the average cumulative indebted- 11 ness at graduation for borrowers of loans 12 made under this title who are in the same 13 program of study as the borrower. 14 ‘‘(M) For a borrower with an outstanding 15 balance of principal or interest due on a loan 16 made under this title— 17 ‘‘(i) a current statement of the 18 amount of such outstanding balance and 19 interest accrued; 20 ‘‘(ii) based on such outstanding bal- 21 ance, the anticipated monthly payment 22 amount under the standard repayment 23 plan, and the income-based repayment plan 24 under section 466(d) or 493C, as deter- 25 mined using available percentile data from g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00423 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 424 1 the Bureau of Labor Statistics of the 2 starting salary for the occupation the bor- 3 rower intends to be employed; and 4 ‘‘(iii) an estimate of the projected 5 monthly payment amount under each re- 6 payment plan described in clause (ii), 7 based on— 8 ‘‘(I) the outstanding balance de- 9 scribed in clause (i); 10 ‘‘(II) the anticipated outstanding 11 balance on the loan for which the stu- 12 dent is receiving counseling under this 13 subsection; and 14 ‘‘(III) a projection for any other 15 loans made under this title that the 16 borrower is reasonably expected to ac- 17 cept during the borrower’s program of 18 study based on at least the expected 19 increase in the cost of attendance of 20 such program. 21 ‘‘(N) The obligation of the borrower to 22 repay the full amount of the loan, regardless of 23 whether the borrower completes or does not 24 complete the program in which the borrower is g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00424 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 425 1 enrolled within the regular time for program 2 completion. 3 ‘‘(O) The likely consequences of default on 4 the loan, including adverse credit reports, delin- 5 quent debt collection procedures under Federal 6 law, and litigation, and a notice of the institu- 7 tion’s most recent loan repayment rate (as de- 8 fined in section 481B) for the educational pro- 9 gram in which the borrower is enrolled, an ex- 10 planation of the loan repayment rate, and the 11 most recent national average loan repayment 12 rate for an educational program. 13 ‘‘(P) Information on the National Student 14 Loan Data System and how the borrower can 15 access the borrower’s records. 16 ‘‘(Q) The contact information for the insti- 17 tution’s financial aid office or other appropriate 18 office at the institution the borrower may con- 19 tact if the borrower has any questions about the 20 borrower’s rights and responsibilities or the 21 terms and conditions of the loan. 22 ‘‘(5) BORROWERS 23 PLUS LOANS FOR DEPENDENT STUDENTS OR FED- 24 ERAL ONE PARENT LOANS.—The 25 provided under paragraph (1) to a borrower of a g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RECEIVING FEDERAL DIRECT 08:59 Dec 01, 2017 Jkt 000000 information to be (680541 26) PO 00000 Frm 00425 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 426 1 Federal Direct PLUS Loan for a dependent student 2 or a Federal ONE Parent Loan shall include the fol- 3 lowing: 4 ‘‘(A) The information described in sub- 5 paragraphs (A) through (C) and (N) through 6 (Q) of paragraph (4). 7 ‘‘(B) An explanation of the treatment of 8 the loan and private education loans in bank- 9 ruptcy. 10 ‘‘(C) Information on the annual and aggre- 11 gate loan limits. 12 ‘‘(D) Information on the annual percent- 13 age rate of the loan. 14 ‘‘(E) The option of the borrower to pay the 15 interest on the loan while the loan is in 16 deferment. 17 ‘‘(F) For a first-time borrower of a loan or 18 a borrower of a loan under this title who owes 19 no principal or interest on such loan— 20 ‘‘(i) a statement of the anticipated 21 balance on the loan for which the borrower 22 is receiving counseling under this sub- 23 section; 24 ‘‘(ii) based on such anticipated bal- 25 ance, the anticipated monthly payment g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00426 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 427 1 amount under the standard repayment 2 plan; and 3 ‘‘(iii) an estimate of the projected 4 monthly payment amount under the stand- 5 ard repayment plan, based on the average 6 cumulative indebtedness of other borrowers 7 of loans made under this title on behalf of 8 dependent students who are in the same 9 program of study as the student on whose 10 behalf the borrower borrowed the loan. 11 ‘‘(G) For a borrower with an outstanding 12 balance of principal or interest due on such 13 loan— 14 ‘‘(i) a statement of the amount of 15 such outstanding balance; 16 ‘‘(ii) based on such outstanding bal- 17 ance, the anticipated monthly payment 18 amount under the standard repayment 19 plan; and 20 ‘‘(iii) an estimate of the projected 21 monthly payment amount under the stand- 22 ard repayment plan, based on— 23 ‘‘(I) the outstanding balance de- 24 scribed in clause (i); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00427 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 428 1 ‘‘(II) the anticipated outstanding 2 balance on the loan for which the bor- 3 rower is receiving counseling under 4 this subsection; and 5 ‘‘(III) a projection for any other 6 Federal Direct PLUS Loan made on 7 behalf of the dependent student or 8 Federal ONE Parent Loan that the 9 borrower is reasonably expected to ac- 10 cept during the program of study of 11 such student based on at least the ex- 12 pected increase in the cost of attend- 13 ance of such program. 14 ‘‘(H) Debt management strategies that are 15 designed to facilitate the repayment of such in- 16 debtedness. 17 ‘‘(I) An explanation that the borrower has 18 the options to prepay each loan, pay each loan 19 on a shorter schedule, and change repayment 20 plans. 21 ‘‘(J) For each Federal Direct PLUS Loan 22 and each Federal ONE Parent Loan for which 23 the borrower is receiving counseling under this 24 subsection, the contact information for the loan g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00428 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 429 1 servicer of the loan and a link to such servicer’s 2 Website. 3 ‘‘(6) ANNUAL LOAN ACCEPTANCE.—Prior to 4 making the first disbursement of a loan made under 5 this title (other than a Federal Direct Consolidation 6 Loan or Federal ONE Consolidation Loan) to a bor- 7 rower for an award year, an eligible institution, 8 shall, as part of carrying out the counseling require- 9 ments of this subsection for the loan, ensure that 10 after receiving the applicable counseling under para- 11 graphs (2), (4), and (5) for the loan the borrower 12 accepts the loan for such award year by— 13 ‘‘(A) signing the master promissory note 14 for the loan; 15 ‘‘(B) signing and returning to the institu- 16 tion a separate written statement that affirma- 17 tively states that the borrower accepts the loan; 18 or 19 ‘‘(C) electronically signing an electronic 20 version of the statement described in subpara- 21 graph (B).’’. 22 (i) ONLINE COUNSELING TOOLS.—Section 485 (20 23 U.S.C. 1092) is further amended by adding at the end 24 the following: 25 ‘‘(n) ONLINE COUNSELING TOOLS.— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00429 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 430 1 ‘‘(1) IN not later than 1 2 year after the date of enactment of the PROSPER 3 Act, the Secretary shall maintain— 4 ‘‘(A) an online counseling tool that pro- 5 vides the exit counseling required under sub- 6 section (b) and meets the applicable require- 7 ments of this subsection; and 8 ‘‘(B) an online counseling tool that pro- 9 vides the annual counseling required under sub- 10 section (l) and meets the applicable require- 11 ments of this subsection. 12 ‘‘(2) REQUIREMENTS OF TOOLS.—In maintain- 13 ing the online counseling tools described in para- 14 graph (1), the Secretary shall ensure that each such 15 tool is— 16 ‘‘(A) consumer tested to ensure that the 17 tool is effective in helping individuals under- 18 stand their rights and obligations with respect 19 to borrowing a loan made this title or receiving 20 a Federal Pell Grant; 21 ‘‘(B) understandable to students receiving 22 Federal Pell Grants and borrowers of loans 23 made this title; and 24 ‘‘(C) freely available to all eligible institu- 25 tions. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Beginning 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00430 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 431 1 2 ‘‘(3) RECORD The Secretary shall— 3 ‘‘(A) use each online counseling tool de- 4 scribed in paragraph (1) to keep a record of 5 which individuals have received counseling using 6 the tool, and notify the applicable institutions 7 of the individual’s completion of such coun- 8 seling; 9 ‘‘(B) in the case of a borrower who re- 10 ceives annual counseling for a loan made under 11 this title using the tool described in paragraph 12 (1)(B), notify the borrower by when the bor- 13 rower should accept, in a manner described in 14 subsection (l)(6), the loan for which the bor- 15 rower has received such counseling; and 16 ‘‘(C) in the case of a borrower described in 17 subsection (b)(1)(B) at an institution that uses 18 the online counseling tool described in para- 19 graph (1)(A) of this subsection, the Secretary 20 shall attempt to provide the information de- 21 scribed in subsection (b)(1)(A) to the borrower 22 through such tool.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF COUNSELING COMPLETION.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00431 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 432 1 SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGI- 2 BILITY. 3 Section 485E (21 U.S.C. 20 U.S.C. 1092f) is amend- 4 ed— 5 (1) in subsection (b)— 6 (A) in paragraph (2)— 7 (i) by striking ‘‘junior year’’ and in- 8 serting ‘‘sophomore year’’; 9 (ii) by striking ‘‘The Secretary shall 10 ensure that’’ and inserting ‘‘The Secretary 11 shall— 12 ‘‘(A) ensure that’’; and 13 (iii) by adding at the end the fol- 14 lowing: 15 ‘‘(B) create an online platform for States, 16 institutions of higher education, other organiza- 17 tions involved in college access and student fi- 18 nancial aid, secondary schools, and programs 19 under this title that serve secondary school stu- 20 dents to share best practices on disseminating 21 information under this section.’’. 22 (B) in paragraph (4)— 23 (i) in the first sentence— 24 (I) by striking ‘‘Not later than 25 two years after the date of enactment g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00432 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 433 1 of the Higher Education Opportunity 2 Act, the’’ and inserting ‘‘The’’; and 3 (II) by inserting ‘‘continue to’’ 4 before ‘‘implement’’; and 5 (ii) in the second sentence, by striking 6 ‘‘the Internet’’ and inserting ‘‘the Internet, 7 including through social media’’; and 8 9 (2) by adding at the end the following: ‘‘ (c) ONLINE ESTIMATOR TOOL.— 10 ‘‘(1) IN later than 1 year after 11 the date of enactment of the PROSPER Act, the 12 Secretary, in consultation with States, institutions of 13 higher education, and other individuals with experi- 14 ence or expertise in student financial assistance ap- 15 plication processes, shall develop an early estimator 16 tool to be available online and through a mobile ap- 17 plication, which— 18 ‘‘(A) allows an individual to— 19 ‘‘(i) enter basic financial and other 20 relevant information; and 21 ‘‘(ii) on the basis of such information, 22 receive non-binding estimates of potential 23 Federal grant, loan, or work study assist- 24 ance under this title for which a student g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Not 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00433 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 434 1 may be eligible upon completion of an ap- 2 plication form under section 483(a); 3 ‘‘(B) with respect to each institution of 4 higher education that participates in a program 5 under this title selected by an individual for 6 purposes of the estimator tool, provides the in- 7 dividual with the net price (as defined in section 8 132) for the income category described in para- 9 graph (2) that is determined on the basis of the 10 information under subparagraph (A)(i) of this 11 paragraph entered by the individual; and 12 ‘‘(C) includes a clear and conspicuous dis- 13 claimer that the amounts calculated using the 14 estimator tool are estimates based on limited fi- 15 nancial information, and that— 16 ‘‘(i) each such estimate— 17 ‘‘(I) in the case of an estimate 18 under subparagraph (A), is only an 19 estimate and does not represent a 20 final determination, or actual award, 21 of financial assistance under this title; 22 ‘‘(II) in the case of an estimate 23 under subparagraph (B), is only an 24 estimate and not a guarantee of the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00434 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 435 1 actual amount that a student may be 2 charged; 3 ‘‘(III) shall not be binding on the 4 Secretary or an institution of higher 5 education; and 6 ‘‘(IV) may change; and 7 ‘‘(ii) a student must complete an ap- 8 plication form under section 483(a) in 9 order to be eligible for, and receive, an ac- 10 tual financial aid award that includes Fed- 11 eral grant, loan, or work study assistance 12 under this title. 13 ‘‘(2) INCOME income cat- 14 egories for purposes of paragraph (1)(B) are as fol- 15 lows: 16 ‘‘(A) $0 to $30,000. 17 ‘‘(B) $30,001 to $48,000. 18 ‘‘(C) $48,001 to $75,000. 19 ‘‘(D) $75,001 to $110,000. 20 ‘‘(E) $110,001 to $150,000. 21 ‘‘(F) Over $150,000. 22 ‘‘(3) CONSUMER TESTING.—In developing and 23 maintaining the estimator tool described in para- 24 graph (1), the Secretary shall conduct consumer 25 testing with appropriate persons, including current g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CATEGORIES.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00435 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 436 1 and prospective college students, family members of 2 such students, and other individuals with expertise 3 in student financial assistance application processes 4 and college access, to ensure that such tool is easily 5 understandable by students and families and effec- 6 tive in communicating early aid eligibility. 7 ‘‘(4) DATA carrying 8 out this subsection, the Secretary shall not keep, 9 store, or warehouse any data inputted by individuals 10 accessing the tool described in paragraph (1). 11 ‘‘(d) PELL TABLE.— 12 ‘‘(1) IN GENERAL.—The Secretary shall de- 13 velop, and annually update at the beginning of each 14 award year, the following electronic tables to be uti- 15 lized in carrying out this section and containing the 16 information described in paragraph (2) of this sub- 17 section: 18 ‘‘(A) An electronic table for dependent stu- 19 dents. 20 ‘‘(B) An electronic table for independent 21 students with dependents other than a spouse. 22 ‘‘(C) An electronic table for independent 23 students without dependents other than a 24 spouse. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 STORAGE PROHIBITED.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00436 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 437 1 ‘‘(2) INFORMATION.—Each table 2 under paragraph (1), with respect to the category of 3 students to which the table applies for the most re- 4 cently completed award year for which information 5 is available, and disaggregated in accordance with 6 paragraph (3), shall contain the following informa- 7 tion: 8 ‘‘(A) The percentage of undergraduate stu- 9 dents attending an institution of higher edu- 10 cation on a full-time, full-academic year basis 11 who file the financial aid form prescribed under 12 section 483 for the award year and received, for 13 their first academic year during such award 14 year (and not for any additional payment peri- 15 ods after such first academic year), the fol- 16 lowing: 17 ‘‘(i) A Federal Pell Grant equal to the 18 maximum amount of a Federal Pell Grant 19 award determined under section 401(b)(2) 20 for such award year. 21 ‘‘(ii) A Federal Pell Grant in an 22 amount that is— 23 ‘‘(I) less than the maximum 24 amount described in clause (i); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 electronic 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00437 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 438 1 ‘‘(II) not less than 3/4 of such 2 maximum amount for such award 3 year. 4 ‘‘(iii) A Federal Pell Grant in an 5 amount that is— 6 ‘‘(I) less than 3/4 of such max- 7 imum amount; and 8 ‘‘(II) not less than 1/2 of such 9 maximum amount for such award 10 year. 11 ‘‘(iv) A Federal Pell Grant in an 12 amount that is— 13 ‘‘(I) less than 1/2 of such max- 14 imum amount; and 15 ‘‘(II) not less than the minimum 16 Federal Pell Grant amount deter- 17 mined under section 401(b)(4) for 18 such award year. 19 ‘‘(B) The dollar amounts equal to— 20 ‘‘(i) the maximum amount of a Fed- 21 eral Pell Grant award determined under 22 section 401(b)(2) for an award year; 23 ‘‘(ii) 3/4 of such maximum amount; 24 ‘‘(iii) 1/2 of such maximum amount; 25 and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00438 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 439 1 ‘‘(iv) the minimum Federal Pell Grant 2 amount 3 401(b)(4) for such award year. 4 ‘‘(C) A clear and conspicuous notice that— 5 ‘‘(i) the Federal Pell Grant amounts 6 listed in subparagraph (B) are for a pre- 7 vious award year, and such amounts and 8 the 9 amounts may be different for succeeding 10 requirements under for section awarding such award years; and 11 ‘‘(ii) the Federal Pell Grant amount 12 for which a student may be eligible will be 13 determined based on a number of factors, 14 including enrollment status, once the stu- 15 dent completes an application form under 16 section 483(a). 17 ‘‘(D) A link to the early estimator tool de- 18 scribed in subsection (c) of this section, which 19 includes an explanation that an individual may 20 estimate a student’s potential Federal aid eligi- 21 bility under this title by accessing the estimator 22 on the individual’s mobile phone or online. 23 ‘‘(3) INCOME CATEGORIES.—The information 24 provided 25 disaggregated by the following income categories: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 determined 08:59 Dec 01, 2017 Jkt 000000 under paragraph (2)(A) shall be (680541 26) PO 00000 Frm 00439 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 440 1 ‘‘(A) Less than $5,000. 2 ‘‘(B) $5,000 to $9,999. 3 ‘‘(C) $10,000 to $19,999. 4 ‘‘(D) $20,000 to $29,999. 5 ‘‘(E) $30,000 to $39,999. 6 ‘‘(F) $40,000 to $49,999. 7 ‘‘(G) $50,000 to $59,999. 8 ‘‘(H) Greater than $59,999. 9 ‘‘(e) LIMITATION.—The Secretary may not require a 10 State to participate in the activities or disseminate the 11 materials described in this section.’’. 12 SEC. 490. DISTANCE EDUCATION DEMONSTRATION PRO- 13 GRAMS. 14 15 Section 486 (20 U.S.C. 1093(b)) is repealed. SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREE- 16 17 MENTS. (a) PROGRAM PARTICIPATION AGREEMENTS.—Sec- 18 tion 487(a) (20 U.S.C. 1094(a)) is amended in the matter 19 before paragraph (1) by striking ‘‘, except with respect 20 to a program under subpart 4 of part A’’. 21 (b) PERKINS CONFORMING CHANGES.—Section 22 487(a)(5) (20 U.S.C. 1094(a)(5)) is amended by striking 23 ‘‘and, in the case of an institution participating in a pro24 gram under part B or part E, to holders of loans made 25 to the institution’s students under such parts’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00440 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 441 1 (c) CERTIFICATIONS TO LENDERS.—Section 487(a) 2 (20 U.S.C. 1094(a)) is amended by striking paragraph 3 (6). 4 (d) STATE GRANT ASSISTANCE.—Section 487(a)(9) 5 (20 U.S.C. 1094(a)(9)) is amended by striking ‘‘in a pro6 gram under part B or D’’ and inserting ‘‘in a loan pro7 gram under this title’’. 8 (e) DRUG ABUSE PREVENTION PROGRAMS.—Section 9 487(a) (20 U.S.C. 1094(a)) is amended by striking para10 graph (10). 11 (f) REPAYMENT SUCCESS PLAN.—Section 12 487(a)(14) (20 U.S.C. 1094(a)(14)) is amended— 13 (1) by striking ‘‘under part B or D’’ both 14 places it appears and inserting ‘‘a loan program 15 under this title’’; 16 (2) by striking ‘‘Default Management Plan’’ 17 both places it appears and inserting ‘‘Repayment 18 Success Plan’’; and 19 (3) in subparagraph (C), by striking ‘‘a cohort 20 default rate in excess of 10 percent’’ both places it 21 appears and inserting ‘‘any program with a loan re- 22 payment rate less than 65 percent’’. 23 (g) COMMISSIONS TO THIRD-PARTY ENTITIES.—Sec- 24 tion 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00441 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 442 1 (1) by striking ‘‘The institution’’ and inserting 2 ‘‘(A) Except as provided in subparagraph (B), the 3 institution’’; and 4 5 (2) by adding at the end the following new subparagraph: 6 7 ‘‘(B) An institution described in section 101 may provide payment, based on— 8 ‘‘(i) the amount of tuition generated by the 9 institution from student enrollment, to a third- 10 party entity that provides a set of services to 11 the institution that includes student recruit- 12 ment services, regardless of whether the third- 13 party entity is affiliated with an institution that 14 provides educational services other than the in- 15 stitution providing such payment, if— 16 ‘‘(I) the third-party entity is not affili- 17 ated with the institution providing such 18 payment; 19 ‘‘(II) the third-party entity does not 20 make compensation payments to its em- 21 ployees that would be prohibited under 22 subparagraph (A) if such payments were 23 made by the institution; 24 ‘‘(III) the set of services provided to 25 the institution by the third-party entity in- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00442 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 443 1 clude services in addition to student re- 2 cruitment services, and the institution does 3 not pay the third-party entity solely or sep- 4 arately for student recruitment services 5 provided by the third-party entity; and 6 ‘‘(IV) any student recruitment infor- 7 mation available to the third-party entity, 8 including personally identifiable informa- 9 tion, will not be used by, shared with, or 10 sold to any other person or entity, includ- 11 ing any institution that is affiliated with 12 the third-party entity, unless written con- 13 sent is provided by the student; and 14 ‘‘(ii) students successfully completing their 15 educational programs, to persons who were en- 16 gaged in recruiting such students, but solely to 17 the extent that such payments— 18 ‘‘(I) are obligated to be paid, and are 19 actually paid, only after each student upon 20 whom such payments are based has suc- 21 cessfully completed his or her educational 22 program; and 23 ‘‘(II) are paid only to employees of 24 the institution or its parent company, and 25 not to any other person or outside entity.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00443 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 444 1 (h) CLARIFICATION 2 OPERATE WITHIN A OF PROOF OF AUTHORITY TO STATE.—Section 487(a)(21) (20 3 U.S.C. 1094(a)(21)) is amended by striking ‘‘within a 4 State’’ and inserting ‘‘within a State in which it maintains 5 a physical location’’. 6 (i) DISTRIBUTION OF VOTER REGISTRATION 7 FORMS.—Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is 8 amended to read as follows: 9 ‘‘(23) The institution, if located in a State to 10 which section 4(b) of the National Voter Registra- 11 tion Act of 1993 (42 U.S.C. 1973gg–2(b)) does not 12 apply, will make a good faith effort to distribute, in- 13 cluding through electronic transmission, voter reg- 14 istration forms to students enrolled and physically in 15 attendance at the institution.’’. 16 (j) PROHIBITING COPYRIGHT INFRINGEMENT.—Sec- 17 tion 487(a)(29) (20 U.S.C. 1094(a)(29)) is amended to 18 read as follows: 19 ‘‘(29) The institution will have a policy prohib- 20 iting copyright infringement.’’. 21 (k) MODIFICATIONS TO 22 REQUIREMENTS.—Section PREFERRED LENDER LIST 487(h)(1) (20 U.S.C. 23 1094(h)(1)) is amended— 24 (1) in subparagraph (A)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00444 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 445 1 (A) in clause (i), by inserting ‘‘and’’ after 2 the semicolon; 3 (B) by striking clause (ii); and 4 (C) by redesignating clause (iii) as clause 5 (ii); 6 (2) in subparagraph (D), by inserting ‘‘and’’ 7 after the semicolon; 8 (3) in subparagraph (E), by striking ‘‘; and’’ 9 and inserting a period; and 10 (4) by striking subparagraph (C) and (F) and 11 redesignating subparagraphs (D) and (E) as sub- 12 paragraphs (C) and (D), respectively. 13 (l) ELIMINATION 14 QUIREMENT.—Section OF NON-TITLE IV REVENUE RE- 487 (20 U.S.C. 1094), is further 15 amended— 16 17 (1) in subsection (a), by striking paragraph (24); 18 (2) by striking subsection (d); and 19 (3) by redesignating subsections (e) through (j) 20 as subsections (d) through (i), respectively. 21 (m) CONFORMING AMENDMENTS.—The Higher Edu- 22 cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 23 24 (1) in section 487(a) (20 U.S.C. 1094(a)), as amended by this section— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00445 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 446 1 (A) redesignating paragraphs (7) 2 through (9), as paragraphs (6) through (8), re- 3 spectively; 4 (B) by redesignating paragraphs (11) 5 through (23) as paragraphs (9) through (21), 6 respectively; and 7 (C) by redesignating paragraphs (25) 8 through (29) as paragraphs (22) through (26), 9 respectively; 10 (2) in section 487(c)(1)(A)(iii) (20 U.S.C. 11 1094(c)(1)(A)(iii)), 12 102(a)(1)(C)’’ and inserting ‘‘section 102(a)(1)’’; 13 and 14 (3) in by section striking 487(h)(4) ‘‘section (20 U.S.C. 15 1094(h)(4)), as redesignated by subsection (l)(3), by 16 striking ‘‘section 102’’ and inserting ‘‘section 101 or 17 102’’. 18 SEC. 492. REGULATORY RELIEF AND IMPROVEMENT. 19 Section 487A (20 U.S.C. 1094a) is amended— 20 (1) in subsection (a)— 21 (A) in paragraph (1), by striking ‘‘The 22 Secretary is authorized to’’ and inserting ‘‘The 23 Secretary shall’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 by 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00446 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 447 1 (B) in paragraph (5), by inserting ‘‘at 2 least once every two years’’ before the period at 3 the end; and 4 (2) in subsection (b)— 5 (A) in paragraph (2)— 6 (i) in the paragraph heading, by in- 7 serting ‘‘ANNUAL’’ before ‘‘REPORT’’; and 8 (ii) by striking the first sentence and 9 inserting ‘‘The Secretary shall review the 10 experience, and rigorously evaluate the ac- 11 tivities, of all institutions participating as 12 experimental sites and shall, on an annual 13 basis, submit a report based on the review 14 and evaluation findings to the authorizing 15 committees.’’; 16 (B) in paragraph (3), by amending sub- 17 paragraph (A) to read as follows: 18 ‘‘(A) IN 19 ‘‘(i) EXPERIMENTAL SITES.—The Sec- 20 retary is authorized periodically to select a 21 limited number of institutions for vol- 22 untary participation as experimental sites 23 to provide recommendations to the Sec- 24 retary and to the Congress on the impact g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00447 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 448 1 and effectiveness of proposed regulations 2 or new management initiatives. 3 ‘‘(ii) CONGRESSIONAL 4 AND COMMENTS REQUIRED.— 5 ‘‘(I) NOTICE.—Prior to announc- 6 ing a new experimental site and invit- 7 ing institutions to participate, the 8 Secretary shall provide to the author- 9 izing committees a notice that shall 10 include— 11 ‘‘(aa) a description of the 12 proposed experiment and ration- 13 ale for the proposed experiment; 14 and 15 ‘‘(bb) a list of the institu- 16 tional requirements the Secretary 17 expects to waive and the legal au- 18 thority for such waivers. 19 ‘‘(II) 20 MENTS.—The 21 ceed with announcing a new experi- 22 mental site and inviting institutions to 23 participate until 10 days after the 24 Secretary— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 NOTICE 08:59 Dec 01, 2017 Jkt 000000 CONGRESSIONAL COM- Secretary shall not pro- (680541 26) PO 00000 Frm 00448 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 449 1 ‘‘(aa) receives and addresses 2 all comments from the author- 3 izing committees; and 4 ‘‘(bb) responds to such com- 5 mittees in writing with an expla- 6 nation of how such comments 7 have been addressed. 8 ‘‘(iii) PROHIBITION.—The Secretary is 9 not authorized to carry out clause (i) in 10 any year in which an annual report de- 11 scribed in paragraph (2) relating to the 12 previous year is not submitted to the au- 13 thorizing committees.’’; 14 (C) in paragraph (4)(A), by striking ‘‘bien- 15 nial’’ and inserting ‘‘annual’’; and 16 (D) by striking paragraph (1) and redesig- 17 nating paragraphs (2) through (4) as para- 18 graphs (1) through (3), respectively. 19 SEC. 493. TRANSFER OF ALLOTMENTS. 20 Section 488 (20 U.S.C. 1095) is amended— 21 (1) by inserting ‘‘, as in effect on the day before 22 the date of enactment of the PROSPER Act,’’ after 23 ‘‘section 462’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00449 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 450 1 (2) by inserting ‘‘, as in effect on the day before 2 the date of enactment of the PROSPER Act,’’ after 3 ‘‘462’’. 4 SEC. 494. ADMINISTRATIVE EXPENSES. 5 Section 489(a) (20 U.S.C. 1096(a)) is amended— 6 (1) in the second sentence— 7 (A) by striking ‘‘subpart 3 of part A or 8 part C,’’ and inserting ‘‘part C’’ ; and 9 (B) by striking ‘‘or under part E of this 10 title’’; and 11 (2) in the third sentence— 12 (A) by striking ‘‘its grants to students 13 under subpart 3 of part A,’’; and 14 (B) by striking ‘‘, and the principal 15 amount of loans made during such fiscal year 16 from its student loan fund established under 17 part E, excluding the principal amount of any 18 such loans which the institution has referred 19 under section 463(a)(4)(B)’’. 20 SEC. 494A. REPEAL OF ADVISORY COMMITTEE. 21 22 Section 491 (20 U.S.C. 1098) is repealed. SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULE- 23 24 MAKING. Section 492 (20 U.S.C. 1098a) is amended— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00450 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 451 1 2 (1) by redesignating subsections (c) and (d) as subsections (f) and (g), respectively; and 3 (2) by striking subsections (a) and (b) and in- 4 serting the following: 5 ‘‘(a) IN GENERAL.—The Secretary may, in accord- 6 ance with this section, issue such regulations as are rea7 sonably necessary to ensure compliance with this title. 8 ‘‘(b) PUBLIC INVOLVEMENT.—The Secretary shall 9 obtain public involvement in the development of proposed 10 regulations for this title. Before carrying out a negotiated 11 rulemaking process as described in subsection (d) or pub12 lishing in the Federal Register proposed regulations to 13 carry out this title, the Secretary shall obtain advice and 14 recommendations from individuals, and representatives of 15 groups, involved in student financial assistance programs 16 under this title, such as students, institutions of higher 17 education, financial aid administrators, accrediting agen18 cies or associations, State student grant agencies, guar19 anty agencies, lenders, secondary markets, loan servicers, 20 guaranty agency servicers, and collection agencies. 21 ‘‘(c) MEETINGS AND ELECTRONIC EXCHANGE.— 22 ‘‘(1) IN Secretary shall provide 23 for a comprehensive discussion and exchange of in- 24 formation concerning the implementation of this title 25 through such mechanisms as regional meetings and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00451 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 452 1 electronic exchanges of information. Such regional 2 meetings and electronic exchanges of information 3 shall be public and notice of such meetings and ex- 4 changes shall be provided to— 5 ‘‘(A) the authorizing committees at least 6 10 days prior to the notice to interested stake- 7 holders and the public described in subpara- 8 graph (B); and 9 ‘‘(B) interested stakeholders and the public 10 at least 30 days prior to such meetings and ex- 11 changes. 12 ‘‘(2) CONSIDERATION.—The Secretary shall 13 take into account the information received through 14 such mechanisms in the development of proposed 15 regulations and shall publish a summary of such in- 16 formation in the Federal Register prior to beginning 17 the negotiated rulemaking process described in sub- 18 section (d). 19 ‘‘(d) NEGOTIATED RULEMAKING PROCESS.— 20 ‘‘(1) NEGOTIATED 21 All regulations pertaining to this title that are pro- 22 mulgated after the date of the enactment of this 23 paragraph shall be subject to the negotiated rule- 24 making process described in this subsection (includ- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 RULEMAKING REQUIRED.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00452 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 453 1 ing the selection of the issues to be negotiated), un- 2 less the Secretary— 3 ‘‘(A) determines that applying such a re- 4 quirement with respect to given regulations is 5 impracticable, unnecessary, or contrary to the 6 public interest (within the meaning of section 7 553(b)(3)(B) of title 5, United States Code); 8 ‘‘(B) publishes the basis for such deter- 9 mination in the Federal Register at the same 10 time as the proposed regulations in question are 11 first published; and 12 ‘‘(C) includes the basis for such determina- 13 tion in the congressional notice under sub- 14 section (e)(1). 15 ‘‘(2) CONGRESSIONAL 16 REQUIRED.— 17 ‘‘(A) NOTICE.—The Secretary shall pro- 18 vide to the Committee on Education and the 19 Workforce of the House of Representatives and 20 the Committee on Health, Education, Labor, 21 and Pensions of the Senate notice of the intent 22 establish a negotiated rulemaking committee 23 that shall include— 24 ‘‘(i) the need to issue regulations; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 NOTICE AND COMMENTS 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00453 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 454 1 ‘‘(ii) the statutory and legal authority 2 of the Secretary to regulate the issue; 3 ‘‘(iii) the summary of public com- 4 ments described in paragraph (2) of sub- 5 section (c); 6 ‘‘(iv) the anticipated burden, including 7 the time, cost, and paperwork burden, the 8 regulations will have on institutions of 9 higher education and other entities that 10 may be impacted by the regulations; and 11 ‘‘(v) any regulations that will be re- 12 pealed when the new regulations are 13 issued. 14 ‘‘(B) CONGRESSIONAL 15 Secretary shall not proceed with the negotiated 16 rulemaking process— 17 ‘‘(i) until 10 days after the Sec- 18 retary— 19 ‘‘(I) receives and addresses all 20 comments from the authorizing com- 21 mittees; and 22 ‘‘(II) responds to the authorizing 23 committees in writing with an expla- 24 nation of how such comments have 25 been addressed; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 COMMENTS.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00454 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 455 1 ‘‘(ii) until 60 days after providing the 2 notice required under subparagraph (A) if 3 the Secretary has not received comments 4 under clause (i). 5 ‘‘(3) PROCESS.—After obtaining advice and rec- 6 ommendations under subsections (b) and (c), and 7 before publishing proposed regulations, the Secretary 8 shall— 9 ‘‘(A) establish a negotiated rulemaking 10 process; 11 ‘‘(B) select individuals to participate in 12 such process— 13 ‘‘(i) from among individuals or groups 14 that provided advice and recommendations 15 under subsections (b) and (c), including— 16 ‘‘(I) 17 of such groups from Washington, D.C.; and 18 ‘‘(II) other industry participants; 19 and 20 ‘‘(ii) with demonstrated expertise or 21 experience in the relevant subjects under 22 negotiation, reflecting the diversity in the 23 industry, representing both large and small 24 participants, as well as individuals serving 25 local areas and national markets; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 representatives 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00455 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 456 1 ‘‘(C) prepare a draft of proposed policy op- 2 tions, which shall take into account comments 3 received from both the public and the author- 4 izing committees, that shall be provided to the 5 individuals selected by the Secretary under sub- 6 paragraph (B) and such authorizing committees 7 not less than 15 days before the first meeting 8 under such process; and 9 ‘‘(D) ensure that the negotiation process is 10 conducted in a timely manner in order that the 11 final regulations may be issued by the Secretary 12 within the 360-day period described in section 13 437(e) of the General Education Provisions Act 14 (20 U.S.C. 1232(e)). 15 ‘‘(4) AGREEMENTS 16 ‘‘(A) AGREEMENTS.—All published pro- 17 posed regulations developed through the nego- 18 tiation process under this subsection shall con- 19 form to all agreements resulting from such 20 process unless the Secretary reopens the nego- 21 tiated rulemaking process. 22 ‘‘(B) RECORDS.—The Secretary shall en- 23 sure that a clear and reliable record is main- 24 tained of agreements reached during a negotia- 25 tion process under this subsection. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND RECORDS.— 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00456 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 457 1 ‘‘(e) PROPOSED RULEMAKING.—If the Secretary de- 2 termines pursuant to subsection (d)(1) that a negotiated 3 rulemaking process is impracticable, unnecessary, or con4 trary to the public interest (within the meaning of section 5 553(b)(3)(B) of title 5, United States Code), or the indi6 viduals selected to participate in the process under sub7 section (d)(3)(B) fail to reach unanimous agreement on 8 an issue being negotiated, the Secretary may propose reg9 ulations subject to subsection (f). 10 11 ‘‘(f) REQUIREMENTS TIONS.—Regulations PROPOSED REGULA- FOR proposed pursuant to subsection (e) 12 shall meet the following procedural requirements: 13 ‘‘(1) CONGRESSIONAL of 14 whether congressional notice was submitted under 15 subsection (d)(2), the Secretary shall provide to the 16 Committee on Education and the Workforce of the 17 House of Representatives and the Committee on 18 Health, Education, Labor, and Pensions of the Sen- 19 ate notice that shall include— 20 ‘‘(A) a copy of the proposed regulations; 21 ‘‘(B) the need to issue regulations; 22 ‘‘(C) the statutory and legal authority of 23 the Secretary to regulate the issue; 24 ‘‘(D) the anticipated burden, including the 25 time, cost, and paperwork burden, the regula- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 NOTICE.—Regardless 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00457 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 458 1 tions will have on institutions of higher edu- 2 cation and other entities that may be impacted 3 by the regulations; and 4 ‘‘(E) any regulations that will be repealed 5 when the new regulations are issued. 6 ‘‘(2) CONGRESSIONAL Sec- 7 retary may not proceed with the rulemaking proc- 8 ess— 9 ‘‘(A) until 10 days after the Secretary— 10 ‘‘(i) receives and addresses all com- 11 ments from the authorizing committees; 12 and 13 ‘‘(ii) responds to the authorizing com- 14 mittees in writing with an explanation of 15 how such comments have been addressed; 16 or 17 ‘‘(B) until 60 days after providing the no- 18 tice required under paragraph (1) if the Sec- 19 retary has not received comments under sub- 20 paragraph (A). 21 ‘‘(3) COMMENT AND REVIEW PERIOD.—The 22 comment and review period for the proposed regula- 23 tion shall be 90 days unless an emergency requires 24 a shorter period, in which case such period shall be 25 not less than 45 days and the Secretary shall— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 COMMENTS.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00458 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 459 1 ‘‘(A) designate the proposed regulation as 2 an emergency, with an explanation of the emer- 3 gency, in the notice to the Congress under 4 paragraph (1); 5 ‘‘(B) publish the length of the comment 6 and review period in such notice and in the 7 Federal Register; and 8 ‘‘(C) conduct immediately thereafter re- 9 gional meetings to review such proposed regula- 10 tion before issuing any final regulation. 11 ‘‘(4) INDEPENDENT regula- 12 tion shall be made final after the comment and re- 13 view period until the Secretary has published in the 14 Federal Register an independent assessment (which 15 shall include a representative sampling of institu- 16 tions of higher education based on sector, enroll- 17 ment, urban, suburban, or rural character, and 18 other factors impacted by the regulation) of— 19 ‘‘(A) the burden, including the time, cost, 20 and paperwork burden, the final regulation will 21 impose on institutions and other entities that 22 may be impacted by the regulation; 23 ‘‘(B) an explanation of how the entities de- 24 scribed in subparagraph (A) may cover the cost g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ASSESSMENT.—No 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00459 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 460 1 of the burden assessed under such subpara- 2 graph; and 3 ‘‘(C) the regulation, including a thorough 4 assessment, based on the comments received 5 during the comment and review period under 6 paragraph (3), of whether the rule is finan- 7 cially, operationally, and educationally viable at 8 the institutional level.’’. 9 SEC. 494C. DEFERRAL OF LOAN REPAYMENT FOLLOWING 10 ACTIVE DUTY. 11 Section 493D(a) (20 U.S.C. 1098f) is amended, by 12 striking ‘‘or section 464(c)(2)(A)(iii)’’ and inserting ‘‘, 13 section 464(c)(2)(A)(iii) (as in effect on the day before 14 the date of enactment of the PROSPER Act and pursuant 15 to section 461(a)), or section 469A(a)(2)(A)(iii)’’. 16 SEC. 494D. CONTRACTS; MATCHING PROGRAM. 17 (a) CONTRACTS FOR SUPPLIES AND SERVICES.— 18 (1) IN G of title IV (20 19 U.S.C. 1088 et seq.), as amended by this part, is 20 further amended by adding at the end the following: 21 ‘‘SEC. 493E. CONTRACTS. 22 ‘‘(a) CONTRACTS FOR SUPPLIES AND SERVICES.— 23 ‘‘(1) IN GENERAL.—The Secretary shall, to the 24 extent practicable, award contracts for origination, 25 servicing, and collection described in subsection (b). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Part 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00460 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 461 1 In awarding such contracts, the Secretary shall en- 2 sure that such services and supplies are provided at 3 competitive prices. 4 ‘‘(2) ENTITIES.—The entities with which the 5 Secretary may enter into contracts shall include en- 6 tities qualified to provide such services and supplies 7 and will comply with the procedures applicable to 8 the award of such contracts. In the case of awarding 9 contracts for the origination, servicing, and collec- 10 tion of loans under parts D and E, the Secretary 11 shall enter into contracts with entities that have ex- 12 tensive and relevant experience and demonstrated ef- 13 fectiveness. The entities with which the Secretary 14 may enter into such contracts may include, where 15 practicable, agencies with agreements with the Sec- 16 retary under sections 428(b) and (c), if such agen- 17 cies meet the qualifications as determined by the 18 Secretary under this subsection and if those agencies 19 have such experience and demonstrated effective- 20 ness. In awarding contracts to such State agencies, 21 the Secretary shall, to the extent practicable and 22 consistent with the purposes of parts D and E, give 23 consideration to State agencies with a history of 24 high quality performance to perform services for in- 25 stitutions of higher education within their State. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00461 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 462 1 ‘‘(3) ALLOCATIONS.— 2 ‘‘(A) IN as provided in 3 subparagraph (B), the Secretary shall allocate 4 new borrower loan accounts to entities awarded 5 a contract under this section on the basis of— 6 ‘‘(i) the performance of each such en- 7 tity compared to other such entities per- 8 forming similar work using common per- 9 formance metrics, as determined by the 10 Secretary; and 11 ‘‘(ii) the capacity of each such entity 12 compared to other such entities performing 13 similar work to service new and existing 14 borrower loan accounts. 15 ‘‘(B) 16 LOANS.—Any 17 ONE Consolidation Loan may select the entity 18 awarded a contract under this section to service 19 such loan. 20 ‘‘(4) RULE FEDERAL ONE CONSOLIDATION borrower who receives a Federal OF CONSTRUCTION.—Nothing in 21 this section shall be construed as a limitation of the 22 authority of any State agency to enter into an agree- 23 ment for the purposes of this section as a member 24 of a consortium of State agencies. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Except 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00462 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 463 1 ‘‘(b) CONTRACTS FOR ORIGINATION, SERVICING, AND 2 DATA SYSTEMS.—The Secretary may enter into contracts 3 for— 4 5 ‘‘(1) the servicing and collection of loans made or purchased under part D or E; 6 ‘‘(2) the establishment and operation of 1 or 7 more data systems for the maintenance of records 8 on all loans made or purchased under part D or E; 9 and 10 ‘‘(3) such other aspects of the direct student 11 loan program under part D or E necessary to ensure 12 the successful operation of the program. 13 ‘‘(c) COMMON PERFORMANCE MANUAL.— 14 ‘‘(1) CONSULTATION.—Not later than 180 days 15 after the date of enactment of the PROSPER Act 16 and biannually thereafter, the Secretary shall con- 17 sult (in writing and in person) with entities awarded 18 contracts for loan servicing under section 456 (as in 19 effect on the day before the date of enactment of the 20 PROSPER Act) and this section, to the extent prac- 21 ticable, to develop and update as necessary, a guid- 22 ance manual for entities awarded contracts for loan 23 servicing under this section that provides such enti- 24 ties with best practices to ensure borrowers receive 25 adequate and consistent service from such entities. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00463 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 464 1 ‘‘(2) PROVISION Secretary 2 shall provide the most recent guidance manual devel- 3 oped and updated under paragraph (1) to each enti- 4 ty awarded a contract for loan serving under this 5 section. 6 ‘‘(3) ANNUAL REPORT.—The Secretary shall 7 provide to the authorizing committees a report, on 8 a annual basis, detailing the consultation required 9 under paragraph (1). 10 ‘‘(d) FEDERAL PREEMPTION.— 11 ‘‘(1) DISCLOSURE AND COMMUNICATIONS.—An 12 entity awarded a contract under this section for the 13 origination, servicing, and collection of loans made 14 under this title shall not be subject to any law or 15 other requirement of any State or political subdivi- 16 sion of a State with respect to— 17 ‘‘(A) disclosure requirements; or 18 ‘‘(B) requirements or restrictions on the 19 time, quantity, or frequency of communications 20 with borrowers, endorsers, or references with 21 respect to such loans. 22 ‘‘(2) SERVICING AND COLLECTION.—The re- 23 quirements of this section with respect to the serving 24 or collection of loans shall preempt any law or other 25 requirement of a State or political subdivision of a g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF MANUAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00464 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 465 1 State to the extent that such law or other require- 2 ment would, in the absence of this subsection, apply 3 to a loan servicer, or the servicing or collection, of 4 a loan made under this title. 5 ‘‘(3) LIMITATION.—This subsection shall not 6 have any legal effect on any other preemption provi- 7 sion under Federal law with respect to this title.’’. 8 (2) CONFORMING 9 AMENDMENT.—Section 456 (20 U.S.C. 1087f) is repealed. 10 (b) MATCHING PROGRAM.—Part G of section IV (20 11 U.S.C. 1088 et seq.), as amended by subsection (a), is 12 further amended by adding at the end the following: 13 ‘‘SEC. 493F. MATCHING PROGRAM. 14 ‘‘(a) IN GENERAL.—The Secretary of Education and 15 the Secretary of Veterans Affairs shall carry out a com16 puter matching program under which the Secretary of 17 Education identifies, on at least a quarterly basis, bor18 rowers— 19 ‘‘(1) who have been assigned a disability rating 20 of 100 percent (or a combination of ratings equaling 21 100 percent or more) by the Secretary of Veterans 22 Affairs for a service-connected disability (as defined 23 in section 101 of title 38, United States Code); or 24 ‘‘(2) who have been determined by the Sec- 25 retary of Veterans Affairs to be unemployable due to g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00465 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 466 1 a service-connected condition, as described in section 2 437(a)(2). 3 ‘‘(b) BORROWER NOTIFICATION.—With respect to 4 each borrower who is identified under subsection (a), the 5 Secretary shall, as soon as practicable after such identi6 fication— 7 ‘‘(1) notify the borrower of the borrower’s eligi- 8 bility for loan discharge under section 437(a); and 9 ‘‘(2) provide the borrower with simple instruc- 10 tions on how to apply for such loan discharge, in- 11 cluding an explanation that the borrower shall not 12 be required to provide any documentation of the bor- 13 rower’s disability rating to receive such discharge. 14 ‘‘(c) DATA COLLECTION 15 REPORT TO CON- GRESS.— 16 ‘‘(1) IN GENERAL.—The Secretary shall annu- 17 ally collect and submit to the Committees on Edu- 18 cation and the Workforce and Veterans’ Affairs of 19 the House of Representatives and the Committees 20 on Health, Education, Labor, and Pensions and Vet- 21 erans Affairs of the Senate, data about borrowers 22 applying for and receiving loan discharges under sec- 23 tion 437(a), which shall be disaggregated in the 24 manner described in paragraph (2) and include the 25 following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 AND 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00466 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 467 1 ‘‘(A) The number of applications received 2 under section 437(a). 3 ‘‘(B) The number of such applications that 4 were approved. 5 ‘‘(C) The number of loan discharges that 6 were completed under section 437(a). 7 ‘‘(2) DISAGGREGATION.—The data collected 8 under paragraph (1) shall be disaggregated— 9 ‘‘(A) by borrowers who applied under this 10 section for loan discharges under section 11 437(a); 12 ‘‘(B) by borrowers who received loan dis- 13 charges as a result of applying for such dis- 14 charges under this section; 15 ‘‘(C) by borrowers who applied for loan 16 discharges under section 437(a)(2); and 17 ‘‘(D) by borrowers who received loan dis- 18 charges as a result of applying for such dis- 19 charges under section 437(a)(2). 20 ‘‘(d) NOTIFICATION TO BORROWERS.—The Secretary 21 shall notify each borrower whose liability on a loan has 22 been discharged under section 437(a) that the liability on 23 the loan has been so discharged.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00467 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 468 1 PART H—PROGRAM INTEGRITY 2 SEC. 495. REPEAL OF AND PROHIBITION ON STATE AU- 3 THORIZATION REGULATIONS. 4 (a) REGULATIONS REPEALED.—The following regu- 5 lations relating to State authorization (including any sup6 plements or revisions to such regulations) are repealed and 7 shall have no force or effect: 8 (1) The final regulations published by the De- 9 partment of Education in the Federal Register on 10 October 29, 2010 (75 Fed. Reg. 66832 et seq.). 11 (2) The final regulations published by the De- 12 partment of Education in the Federal Register on 13 December 19, 2016 (81 Fed. Reg. 92232 et seq). 14 (b) PROHIBITION 15 LATIONS.—Section ON STATE AUTHORIZATION REGU- 495 (20 U.S.C. 1099a) is amended by 16 striking subsection (b) and inserting the following: 17 ‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each insti- 18 tution of higher education shall provide evidence to the 19 Secretary that the institution has authority to operate 20 within each State in which it maintains a physical location 21 at the time the institution is certified under subpart 3. 22 ‘‘(c) TREATMENT OF RELIGIOUS INSTITUTIONS.—An 23 institution shall be treated as legally authorized to operate 24 educational programs beyond secondary education in a 25 State under section 101(a)(2) if the institution is— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00468 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 469 1 ‘‘(1) recognized as a religious institution by the 2 State; and 3 ‘‘(2) because of the institution’s status as a reli- 4 gious institution, the institution is exempt from any 5 provision of State law that requires institutions to be 6 authorized by the State to operate educational pro- 7 grams beyond secondary education. 8 ‘‘(d) PROHIBITION 9 ULATIONS.—The ON STATE AUTHORIZATION REG- Secretary shall not promulgate or en- 10 force any regulation or rule not in effect on the date of 11 enactment of the PROSPER Act for any purpose under 12 this Act with respect to the State authorization for institu13 tions of higher education to operate within a State.’’. 14 SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR AS- 15 16 SOCIATION. Section 496 (20 U.S.C. 1099b) is amended— 17 18 (1) by striking ‘‘section 102’’ each place it appears and inserting ‘‘section 101’’; 19 (2) in subsection (a)— 20 (A) in paragraph (2), by amending sub- 21 paragraph (A) to read as follows: 22 ‘‘(A) for the purpose of participation in 23 programs under this Act or other programs ad- 24 ministered by the Department of Education or 25 other Federal agencies, has a voluntary mem- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00469 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 470 1 bership of institutions of higher education or 2 other entities and has as a principal purpose 3 the accrediting of institutions of higher edu- 4 cation or programs;’’; 5 (B) in paragraph (3)— 6 (i) in subparagraph (A)— 7 (I) by striking ‘‘subparagraph 8 (A)(i)’’ and inserting ‘‘subparagraph 9 (A) or (C)’’; 10 (II) by striking ‘‘separate’’ and 11 inserting ‘‘separately incorporated’’; 12 and 13 (III) by adding ‘‘or’’ at the end; 14 (ii) by striking ‘‘or’’ at the end of sub- 15 paragraph (B); and 16 (iii) by striking subparagraph (C); 17 (C) in paragraph (4)— 18 (i) in subparagraph (A)— 19 (I) by inserting ‘‘as defined by 20 the institution’’ after ‘‘religious mis- 21 sions’’; 22 (II) by striking ‘‘, including dis- 23 tance education or correspondence 24 courses or programs,’’; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00470 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 471 1 (III) by striking ‘‘and’’ at the 2 end; 3 (ii) by striking subparagraph (B) and 4 inserting the following: 5 ‘‘(B) such agency or association dem- 6 onstrates the ability to review, evaluate, and as- 7 sess the quality of any instruction delivery 8 model or method such agency or association has 9 or seeks to include within its scope of recogni- 10 tion, without giving preference to or differen- 11 tially treating a particular instruction delivery 12 model or method offered by an institution of 13 higher education or program; and 14 ‘‘(C) if such agency or association has or 15 seeks to include within its scope of recognition 16 the evaluation of the quality of competency- 17 based education programs, such agency or asso- 18 ciation shall, in addition to meeting the other 19 requirements of this subpart, demonstrate to 20 the Secretary that, with respect to competency- 21 based education programs— 22 ‘‘(i) the agency or association’s stand- 23 ards include a process for determining 24 whether an institution or program requires g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00471 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 472 1 the demonstration of competencies that 2 are— 3 ‘‘(I) capable of being validly and 4 reliably assessed; and 5 ‘‘(II) appropriate in scope and 6 rigor for the award of the relevant 7 certificate, degree, or other recognized 8 educational credential; and 9 ‘‘(ii) the agency or association re- 10 quires that an institution or program dem- 11 onstrate that it— 12 ‘‘(I) has identified competencies 13 that meet the requirements of sub- 14 clauses (I) and (II) of clause (i); 15 ‘‘(II) requires students to dem- 16 onstrate mastery of each relevant 17 competency in order to earn the cer- 18 tificate, degree, or credential; 19 ‘‘(III) has the administrative ca- 20 pacity and expertise that will ensure 21 the validity and reliability of assess- 22 ments of competencies and that the 23 institution follows good practices in 24 assessment and measurement; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00472 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 473 1 ‘‘(IV) provides sufficient faculty 2 instruction, educational content, ac- 3 tivities, and resources to enable stu- 4 dents to learn or develop what is re- 5 quired to demonstrate or attain mas- 6 tery of competencies and that such re- 7 quirements are consistent with the 8 claims that the institution makes for 9 the qualifications of graduates; and 10 ‘‘(V) has defined an academic 11 year 12 481(a)(3);’’; 13 accordance with section (D) by amending paragraph (5) to read as 14 follows: 15 ‘‘(5) the standards for accreditation of the 16 agency or association assess the institution’s success 17 with respect to student learning and educational out- 18 comes in relation to the institution’s mission, which 19 may include different standards for different institu- 20 tions or programs, except that the standards shall 21 include consideration of student learning and edu- 22 cational outcomes in relation to expected measures 23 of student learning and educational outcomes, which 24 at the agency’s or association’s discretion are estab- 25 lished— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 in 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00473 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 474 1 ‘‘(A) by the agency or association; or 2 ‘‘(B) by the institution or program, at the 3 institution or program level, as the case may be, 4 if the institution or program— 5 ‘‘(i) defines expected student learning 6 goals and educational outcomes; 7 ‘‘(ii) measures and evaluates student 8 learning, educational outcomes, and, if ap- 9 propriate, other outcomes of the students 10 who complete their program of study; 11 ‘‘(iii) uses information about student 12 learning, educational outcomes, and, if ap- 13 propriate, other outcomes, to improve the 14 institution or program; and 15 ‘‘(iv) makes such information avail- 16 able to appropriate constituencies;’’; and 17 (E) in paragraph (8), by striking ‘‘, upon 18 request,’’; 19 (3) in subsection (b)— 20 (A) in the subsection heading, by striking 21 ‘‘SEPARATE’’ and inserting ‘‘SEPARATELY IN- 22 CORPORATED’’; 23 (B) in the matter preceding paragraph (1), 24 by striking ‘‘separate’’ and inserting ‘‘sepa- 25 rately incorporated’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00474 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 475 1 (C) in paragraph (2), by inserting ‘‘who 2 shall represent business’’ after ‘‘one such public 3 member’’; and 4 (D) in paragraph (4), by inserting before 5 the period at the end ‘‘and is maintained sepa- 6 rately from any such entity or organization’’; 7 (4) in subsection (c)— 8 (A) in paragraph (1)— 9 (i) by inserting ‘‘(which may vary 10 based on institutional risk consistent with 11 policies promulgated by the agency or asso- 12 ciation to determine such risk and interval 13 frequency as allowed under subsection 14 (p))’’ after ‘‘intervals’’; and 15 (ii) by striking ‘‘distance education’’ 16 and 17 cation’’; 18 (B) by striking paragraph (5) and redesig- 19 nating paragraphs (2), (3), and (4) as para- 20 graphs (3), (4), and (5), respectively; 21 ‘‘competency-based edu- (C) by inserting after paragraph (1), the 22 following: 23 ‘‘(2) develops a mechanism to identify institu- 24 tions or programs accredited by the agency or asso- 25 ciation that may be experiencing difficulties accom- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 inserting 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00475 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 476 1 plishing their missions with respect to the student 2 learning and educational outcome goals established 3 under subsection (a)(5) and— 4 ‘‘(A) as appropriate, uses information such 5 as student loan default or repayment rates, re- 6 tention or graduation rates, evidence of student 7 learning, financial data, and other indicators to 8 identify such institutions; 9 ‘‘(B) not less than annually, evaluates the 10 extent to which those identified institutions or 11 programs continue to be in compliance with the 12 agency or association’s standards; and 13 ‘‘(C) as appropriate, requires the institu- 14 tion or program to address deficiencies and en- 15 sure that any plan to address and remedy defi- 16 ciencies is successfully implemented.’’; 17 (D) in paragraph (4)(A), as so redesig- 18 nated, by striking ‘‘487(f)’’ and inserting 19 ‘‘487(e)’’; 20 (E) by amending paragraph (5), as so re- 21 designated, to read as follows: 22 ‘‘(5) establishes and applies or maintains poli- 23 cies which ensure that any substantive change to the 24 educational mission, program, or programs of an in- 25 stitution after the agency or association has granted g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00476 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 477 1 the institution accreditation or preaccreditation sta- 2 tus does not adversely affect the capacity of the in- 3 stitution to continue to meet the agency’s or associa- 4 tion’s 5 preaccreditation status, which shall include policies 6 that— standards such accreditation or 7 ‘‘(A) require the institution to obtain the 8 agency’s or association’s approval of the sub- 9 stantive change before the agency or association 10 includes the change in the scope of the institu- 11 tion’s accreditation or preaccreditation status; 12 and 13 ‘‘(B) define substantive change to include, 14 at a minimum— 15 ‘‘(i) any change in the established 16 mission or objectives of the institution; 17 ‘‘(ii) any change in the legal status, 18 form of control, or ownership of the insti- 19 tution; 20 ‘‘(iii) the addition of courses, pro- 21 grams of instruction, training, or study, or 22 credentials or degrees that represent a sig- 23 nificant departure from the courses, pro- 24 grams, or credentials or degrees that were g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 for 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00477 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 478 1 offered at time the agency or association 2 last evaluated the institution; or 3 ‘‘(iv) the entering into a contract 4 under which an institution or organization 5 not certified to participate programs under 6 title IV provides a portion of an accredited 7 institution’s educational program that is 8 greater than 25 percent;’’; 9 (F) in paragraph (7)— 10 (i) in the matter preceding subpara- 11 graph (A), by inserting ‘‘, on the agency’s 12 or association’s website,’’ after ‘‘public’’; 13 (ii) in subparagraph (C), by inserting 14 before the semicolon at the end the fol- 15 lowing: ‘‘, and a summary of why such ac- 16 tion was taken or such placement was 17 made’’; 18 (G) in paragraph (8), by striking ‘‘and’’ at 19 the end; 20 (H) in paragraph (9), by striking the pe- 21 riod at the end and inserting a semicolon; 22 (I) by adding at the end the following: 23 ‘‘(10) makes publicly available, on the agency 24 or association’s website, a list of the institutions of 25 higher education accredited by such agency or asso- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00478 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 479 1 ciation, which includes, with respect to each institu- 2 tion on the list–— 3 ‘‘(A) the year accreditation was granted; 4 ‘‘(B) the most recent date of a comprehen- 5 sive evaluation of the institution under para- 6 graph (1); and 7 ‘‘(C) the anticipated date of the next such 8 evaluation; and 9 ‘‘(11) confirms, as a part of the agency’s or as- 10 sociation’s review for accreditation or reaccredita- 11 tion, that the institution’s website includes consumer 12 information described section paragraphs (1) and 13 (2) of section 132(d).’’; 14 (5) in subsection (e)— 15 (A) by striking ‘‘The Secretary’’ and in- 16 serting the following: 17 ‘‘(1) IN 18 to paragraph (2), the Secretary’’; and 19 (B) by adding at the end the following: 20 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 21 apply in the case of an institution described in sub- 22 section (j).’’. 23 24 (6) by striking subsection (h) and inserting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Subject 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00479 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 480 1 2 ‘‘(h) CHANGE OF ACCREDITING AGENCY OR ASSOCIATION.— 3 ‘‘(1) IN Secretary shall not 4 recognize the accreditation of any otherwise eligible 5 institution of higher education if the institution is in 6 the process of changing its accrediting agency or as- 7 sociation and is subject to one or more of the fol- 8 lowing actions, unless the eligible institution submits 9 to the Secretary materials demonstrating a reason- 10 able cause for changing the accrediting agency or as- 11 sociation: 12 ‘‘(A) A pending or final action brought by 13 a State agency to suspend, revoke, withdraw, or 14 terminate the institution’s legal authority to 15 provide postsecondary education in the State. 16 ‘‘(B) A decision by a recognized accred- 17 iting agency or association to deny accreditation 18 or preaccreditation to the institution. 19 ‘‘(C) A pending or final action brought by 20 a recognized accrediting agency or association 21 to suspend, revoke, withdraw, or terminate the 22 institution’s accreditation or preaccreditation. 23 ‘‘(D) Probation or an equivalent status im- 24 posed on the institution by a recognized accred- 25 iting agency or association. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00480 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 481 1 ‘‘(2) RULE in 2 this subsection shall be construed to restrict the 3 ability of an institution of higher education not sub- 4 ject to an action described in paragraph (1) and oth- 5 erwise in good standing to change accrediting agen- 6 cies or associations without the approval of the Sec- 7 retary as long as the institution notifies the Sec- 8 retary of the change.’’; 9 (7) by striking subsection (k) and inserting the 10 following: 11 ‘‘(k) RELIGIOUS INSTITUTION RULE.— 12 ‘‘(1) IN GENERAL.—Notwithstanding subsection 13 (j), the Secretary shall allow an institution that has 14 had its accreditation withdrawn, revoked, or other- 15 wise terminated, or has voluntarily withdrawn from 16 an accreditation agency, to remain certified as an in- 17 stitution of higher education under section 101 and 18 subpart 3 of this part for a period sufficient to allow 19 such institution to obtain alternative accreditation, if 20 the Secretary determines that the withdrawal, rev- 21 ocation, or termination— 22 ‘‘(A) is related to the religious mission or 23 affiliation of the institution; and 24 ‘‘(B) is not related to the accreditation cri- 25 teria provided for in this section. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CONSTRUCTION.—Nothing OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00481 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 482 1 2 ‘‘(2) REQUIREMENTS.—For purposes of this section the following shall apply: 3 ‘‘(A) The religious mission of an institu- 4 tion may be reflected in the institution’s reli- 5 gious tenets, beliefs, or teachings, and any poli- 6 cies or decisions related to such tenets, beliefs, 7 or teachings (including any policies or decisions 8 concerning housing, employment, student ad- 9 mission, continuing enrollment, graduation, cur- 10 riculum, or self-governance. 11 ‘‘(B) An agency or association’s standard 12 fails to respect an institution’s religious mission 13 when the institution determines that the stand- 14 ard induces, pressures, or coerces the institu- 15 tion to act contrary to, or to refrain from acting 16 in support of, any aspect of its religious mis- 17 sion.’’; 18 (8) in subsection (n)(3), by striking ‘‘distance 19 education courses or programs’’ each place it ap- 20 pears and inserting ‘‘competency-based education 21 programs’’ ; 22 (9) in subsection (o), by inserting before the pe- 23 riod at the end the following: ‘‘, or with respect to 24 the policies and procedures of an accreditation agen- 25 cy or association described in paragraph (2) or (5) g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00482 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 483 1 of subsection (c) or how the agency or association 2 carries out such policies and procedures’’; 3 (10) by striking subsections (p) and (q); and 4 (11) by adding at the end the following: 5 ‘‘(p) RISK-BASED OR DIFFERENTIATED REVIEW 6 PROCESSES OR PROCEDURES.— 7 ‘‘(1) IN any other 8 provision of law (including subsection (a)(4)(A)), an 9 accrediting agency or association may establish, with 10 the involvement of its membership, risk-based or dif- 11 ferentiated review processes or procedures for as- 12 sessing compliance with the accrediting agency or 13 association’s standards, including policies related to 14 substantive change and award of accreditation 15 statuses, for institutions of higher education or pro- 16 grams that have demonstrated exceptional past per- 17 formance with respect to meeting the accrediting 18 agency or association’s standards. 19 ‘‘(2) PROHIBITION.—Risk-based or differen- 20 tiated review processes or procedures shall not dis- 21 criminate against, or otherwise preclude, institutions 22 of higher education based on institutional sector or 23 category, including an institution of higher edu- 24 cation’s tax status. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Notwithstanding 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00483 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 484 1 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 2 this subsection shall be construed to permit the Sec- 3 retary to establish any criterion that specifies, de- 4 fines, or prescribes an accrediting agency or associa- 5 tion’s risk-based or differentiated review process or 6 procedure. 7 ‘‘(q) WAIVER.—The Secretary shall establish a proc- 8 ess through which an agency or association may seek to 9 have a requirement of this subpart waived, if such agency 10 or association— 11 ‘‘(1) demonstrates that such waiver is necessary 12 to enable an institution of higher education or pro- 13 gram accredited by the agency or association to im- 14 plement innovative practices intended to— 15 ‘‘(A) reduce administrative burdens to the 16 institution or program without creating costs 17 for the taxpayer; or 18 ‘‘(B) improve the delivery of services to 19 students, improve instruction or learning out- 20 comes, or otherwise benefit students; and 21 ‘‘(2) describes the terms and conditions that 22 will be placed upon the program or institution to en- 23 sure academic integrity and quality.’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00484 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 485 1 SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES. 2 3 (a) ELIGIBILITY DURES.—Section 4 AND CERTIFICATION PROCE- 498 (20 U.S.C. 1099c) is amended— (1) in subsection (a)— 5 (A) by striking ‘‘For purposes of’’ and in- 6 serting the following: 7 ‘‘(1) IN 8 GENERAL.—For purposes of’’; (B) by inserting ‘‘, subject to paragraph 9 (2),’’ after ‘‘determine’’; and 10 (C) by adding at the end the following: 11 ‘‘(2) SPECIAL RULE.—The determination of 12 whether an institution of higher education is legally 13 authorized to operate in a State under section 14 101(a)(2) shall be based solely on that State’s 15 laws.’’; 16 17 (2) in subsection (b)(5), by striking ‘‘B or D’’ and inserting ‘‘E’’; 18 (3) in subsection (c)— 19 (A) by redesignating paragraphs (4), (5), 20 and (6) as paragraphs (6), (7), and (8), respec- 21 tively; 22 (B) by striking the subsection designation 23 and all that follows through the end of para- 24 graph (3) and inserting the following: 25 ‘‘(c) FINANCIAL RESPONSIBILITY STANDARDS.—(1) 26 The Secretary shall determine whether an institution has g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00485 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 486 1 the financial responsibility required by this title in accord2 ance with paragraph (2). 3 ‘‘(2) An institution shall be determined to be finan- 4 cially responsible by the Secretary, as required by this 5 title, if the institution is able to provide the services de6 scribed in its official publications and statements, is able 7 to provide the administrative resources necessary to com8 ply with the requirements of this title, and meets one of 9 the following conditions: 10 ‘‘(A) Such institution has its liabilities backed 11 by the full faith and credit of a State, or its equiva- 12 lent. 13 ‘‘(B) Such institution has a bond credit quality 14 rating of investment grade or higher from a recog- 15 nized credit rating agency. 16 ‘‘(C) Such institution has expendable net assets 17 equal to not less than one-half of the annual poten- 18 tial liabilities of such institution to the Secretary for 19 funds under this title, including loan obligations dis- 20 charged pursuant to section 437, and to students for 21 refunds of institutional charges, including funds 22 under this title, as calculated by an independent cer- 23 tified public accountant in accordance with generally 24 accepted auditing standards. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00486 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 487 1 ‘‘(D) Such institution establishes, with the sup- 2 port of a financial statement audited by an inde- 3 pendent certified public accountant in accordance 4 with generally accepted auditing standards, that the 5 institution has sufficient resources to ensure against 6 the precipitous closure of the institution, including 7 the ability to meet all of its financial obligations (in- 8 cluding refunds of institutional charges and repay- 9 ments to the Secretary for liabilities and debts in- 10 curred in programs administered by the Secretary). 11 ‘‘(E) Such institution has met criteria, pre- 12 scribed by the Secretary by regulation in accordance 13 with paragraph (3), that— 14 ‘‘(i) establish ratios that demonstrate fi- 15 nancial responsibility in accordance with gen- 16 erally accepted auditing standards as described 17 in paragraph (7); 18 ‘‘(ii) incorporate the procedures described 19 in paragraph (4); 20 ‘‘(iii) establish consequences for failure to 21 meet the criteria described in paragraph (5); 22 and 23 ‘‘(iv) take into account any differences in 24 generally accepted accounting principles, and 25 the financial statements required thereunder, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00487 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 488 1 that are applicable to for-profit, public, and 2 nonprofit institutions. 3 ‘‘(3) The criteria prescribed pursuant to paragraph 4 (2)(E) shall provide that the Secretary shall— 5 ‘‘(A) not later than 6 months after an institu- 6 tion that is subject to the requirements of paragraph 7 (2)(E) has submitted its annual financial statement, 8 provide to such institution a notification of its pre- 9 liminary score under such paragraph; 10 ‘‘(B) provide to each such institution a descrip- 11 tion of the method used, and complete copies of all 12 the calculations performed, to determine the institu- 13 tion’s score, if such institution makes a request for 14 such information within 45 days after receiving the 15 notice under subparagraph (A); 16 ‘‘(C) within 60 days of receipt by an institution 17 of the information described in subparagraph (B)— 18 ‘‘(i) allow the institution to correct or cure 19 an administrative, accounting, or recordkeeping 20 error if the error is not part of a pattern of er- 21 rors and there is no evidence of fraud or mis- 22 conduct related to the error; 23 ‘‘(ii) if the institution demonstrates that 24 the Secretary has made errors in its determina- 25 tion of the initial score or has used non-stand- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00488 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 489 1 ard accounting practices in reaching its deter- 2 mination, notify the institution that its com- 3 posite score has been corrected; and 4 ‘‘(iii) take into consideration any subse- 5 quent change in the institution’s overall fiscal 6 health that would raise the institution’s score; 7 ‘‘(D) maintain and preserve at all times the 8 confidentiality of any review until such score is de- 9 termined to be final; and 10 ‘‘(E) make a determination regarding whether 11 the institution has met the standards of financial re- 12 sponsibility based on an audited and certified finan- 13 cial statement of the institution as described in 14 paragraph (7). 15 ‘‘(4) If the Secretary determines, after conducting an 16 initial review, that the institution has not met at least one 17 of the conditions described in subparagraphs (A) through 18 (E) of paragraph (2) but has otherwise met the require19 ments of such paragraph— 20 ‘‘(A) the Secretary shall request information re- 21 lating to such conditions for any affiliated or parent 22 organization, company, or foundation owning or 23 owned by the institution; and 24 ‘‘(B) if such additional information dem- 25 onstrates that an affiliated or parent organization, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00489 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 490 1 company, or foundation owning or owned by the in- 2 stitution meets at least one of the conditions de- 3 scribe in subparagraphs (A) through (E) of para- 4 graph (2), the institution shall be determined to be 5 financially responsible as required by this title. 6 ‘‘(5) The Secretary shall establish policies and proce- 7 dures to address an institution’s failure to meet the cri8 teria of paragraph (2) which shall include policies and pro9 cedures that— 10 ‘‘(A) require an institution that fails to meet 11 the criteria for three consecutive years to provide to 12 the Secretary a financial plan; 13 14 ‘‘(B) provide for additional oversight and cash monitoring restrictions, as appropriate; 15 ‘‘(C) allow an institution to submit to the Sec- 16 retary third-party financial guarantees that the Sec- 17 retary determines are reasonable, such as perform- 18 ance bonds or letters of credit payable to the Sec- 19 retary, except that an institution may not be re- 20 quired to obtain a letter of credit in order to be 21 deemed financially responsible unless— 22 ‘‘(i) the institution has been deemed not to 23 be a going concern, as determined by an inde- 24 pendent certified public accountant in accord- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00490 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 491 1 ance with generally accepted auditing stand- 2 ards; 3 ‘‘(ii) the institution is determined by the 4 Secretary to be at risk of precipitous closure 5 when the full financial resources of the institu- 6 tion, including the value of the institution’s ex- 7 pendable endowment, are considered; or 8 ‘‘(iii) the institution is determined by the 9 Secretary to be at risk of not meeting all of its 10 financial obligations, including refunds of insti- 11 tutional charges and repayments to the Sec- 12 retary for liabilities and debts incurred in pro- 13 grams administered by the Secretary; and 14 ‘‘(D) provide for the removal of all require- 15 ments related to the institution’s failure to meet the 16 criteria once the criteria are met.’’; and 17 (C) in paragraph (7), as so redesignated, 18 by striking ‘‘paragraphs (2) and (3)(C)’’ and 19 inserting ‘‘paragraph (2)’’; 20 (4) in subsection (g)(3)— 21 (A) by striking ‘‘section 102(a)(1)(C)’’ and 22 inserting ‘‘section 102(a)(1)’’; and 23 (B) by striking ‘‘part B’’ and inserting 24 ‘‘part D or E’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00491 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 492 1 2 (5) in subsection (h)(2), by striking ‘‘18’’ and inserting ‘‘36’’; 3 (6) in subsection (i)(1), by striking ‘‘section 4 102 (other than the requirements in subsections 5 (b)(5) and (c)(3))’’ and inserting ‘‘sections 101 6 (other 7 (b)(1)(A) and (b)(2)) and 102’’; 8 9 than the requirements in subsections (7) in subsection (j)(1), by striking ‘‘meet the requirements of sections 102(b)(1)(E) and 10 102(c)(1)(C)’’ and inserting ‘‘meet the requirements 11 to be considered an institution of higher education 12 under sections 101(b)(1)(A) and 101(b)(2)’’; and 13 (8) in subsection (k)— 14 (A) in paragraph (1), by striking ‘‘487(f)’’ 15 and inserting ‘‘487(e)’’; and 16 (B) in paragraph (2)(A), by striking ‘‘meet 17 the requirements of sections 102(b)(1)(E) and 18 102(c)(1)(C)’’ and inserting ‘‘meet the require- 19 ments to be considered an institution of higher 20 education under sections 101(b)(1)(A) and 21 101(b)(2)’’. 22 (b) PROGRAM REVIEW AND DATA.—Section 498A 23 (20 U.S.C. 1099c–1) is amended— 24 (1) in subsection (a)(2)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00492 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 493 1 (A) by striking ‘‘part B of’’ both places it 2 appears; 3 (B) in subparagraph (A), by inserting be- 4 fore the semicolon at the end the following: ‘‘, 5 or after the transition period described in sec- 6 tion 481B(e)(3), institutions in which 25 per- 7 cent or more of the educational programs have 8 a loan repayment rate (defined in section 9 481B(c)) for the most recent fiscal year of less 10 than 50 percent’’; 11 (C) in subparagraph (B), by inserting be- 12 fore the semicolon at the end the following: ‘‘, 13 except that this subparagraph shall not apply 14 after the transition period described in section 15 481B(e)(3)’’; and 16 (D) in subparagraph (C)— 17 (i) by inserting ‘‘Federal ONE Loan 18 volume,’’ after ‘‘Stafford/Ford Loan vol- 19 ume’’; and 20 (ii) by inserting ‘‘Federal ONE Loan 21 program,’’ after ‘‘Stafford/Ford Loan pro- 22 gram’’; 23 (2) in subsection (b)— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00493 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 494 1 (A) by redesignating paragraphs (3) 2 through (8) as paragraphs (4) through (9), re- 3 spectively; 4 (B) by inserting after paragraph (2) the 5 following new paragraph: 6 ‘‘(3) as practicable, provide a written expla- 7 nation to the institution of higher education detail- 8 ing the Secretary’s reasons for initiating the pro- 9 gram review which, if applicable, shall include ref- 10 erences to specific criteria under subsection (a)(2);’’; 11 and 12 (C) in paragraph (9), as so redesignated— 13 (i) by striking ‘‘paragraphs (6) and 14 (7)’’ and inserting ‘‘paragraphs (7) and 15 (8)’’; and 16 (ii) by striking ‘‘paragraph (5)’’ and 17 inserting ‘‘paragraph (6)’’; and 18 (3) by adding at the end the following new sub- 19 section: 20 ‘‘(f) TIME LIMIT 21 TIES.—In ON PROGRAM REVIEW ACTIVI- conducting, responding to, and concluding pro- 22 gram review activities, the Secretary shall— 23 ‘‘(1) provide to the institution the initial report 24 finding not later than 90 days after concluding an 25 initial site visit; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00494 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 495 1 ‘‘(2) upon each receipt of an institution’s re- 2 sponse during a program review inquiry, respond in 3 a substantive manner within 90 days; 4 ‘‘(3) upon each receipt of an institution’s writ- 5 ten response to a draft final program review report, 6 provide the final program review report and accom- 7 panying enforcement actions, if any, within 90 days; 8 and 9 ‘‘(4) conclude the entire program review process 10 not later than 2 years after the initiation of a pro- 11 gram review, unless the Secretary determines that 12 such a review is sufficiently complex and cannot rea- 13 sonably be concluded before the expiration of such 2- 14 year period, in which case the Secretary shall 15 promptly notify the institution of the reasons for 16 such delay and provide an anticipated date for con- 17 clusion of the review.’’. 18 (c) REVIEW OF REGULATIONS.—Section 498B(b) (20 19 U.S.C. 1099c–2(b)) is amended by striking ‘‘section 20 102(a)(1)(C)’’ and inserting ‘‘102(a)(1)’’. TITLE V—DEVELOPING INSTITUTIONS 21 22 23 SEC. 501. HISPANIC-SERVING INSTITUTIONS. 24 Part A of title V (20 U.S.C. 1101 et seq.) is amend- 25 ed— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00495 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 496 1 (1) in section 502(a)— 2 (A) in paragraph (1), by striking ‘‘institu- 3 tion for instruction’’ and inserting ‘‘institution 4 of higher education for instruction’’; 5 (B) in paragraph (2)(A)— 6 (i) by redesignating clauses (v) and 7 (vi) as clauses (vi) and (v), respectively; 8 (ii) in clause (v) (as so redesignated), 9 by 10 ‘‘(as defined in section 103(20)(A))’’ after ‘‘State’’; and 11 (iii) in clause (vi) (as so redesig- 12 nated), by striking ‘‘and’’ at the end; and 13 (C) in paragraph (2)— 14 (i) by striking the period at the end of 15 subparagraph (B) and inserting ‘‘; and’’; 16 and 17 (ii) by adding at the end the fol- 18 lowing: 19 ‘‘(C) except as provided in section 522(b), 20 an institution that has a completion rate of at 21 least 25 percent that is calculated by— 22 ‘‘(i) counting a student as completed 23 if that student graduated within 150 per- 24 cent of the normal time for completion; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 inserting 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00496 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 497 1 ‘‘(ii) counting a student as completed 2 if that student enrolled into another pro- 3 gram at an institution for which the pre- 4 vious program provided substantial prepa- 5 ration within 150 percent of normal time 6 for completion.’’; 7 (2) in section 503— 8 (A) in subsection (b)— 9 (i) in paragraph (5), by striking 10 ‘‘counseling, and’’ and inserting ‘‘coun- 11 seling, advising, and’ ’’ 12 (ii) in paragraph (7), by striking 13 ‘‘funds management’’ and inserting ‘‘funds 14 and administrative management’’; 15 (iii) in paragraph (11), by striking 16 ‘‘Creating’’ and all that follows through 17 ‘‘technologies,’’ and inserting ‘‘Innovative 18 learning models and creating or improving 19 facilities for Internet or other innovative 20 technologies,’’; and 21 (iv) by redesignating paragraph (16) 22 as paragraph (20) and inserting after 23 paragraph (15) the following: 24 ‘‘(16) The development, coordination, imple- 25 mentation, or improvement of career and technical g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00497 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 498 1 education programs (as defined in section 135 of the 2 Carl D. Perkins Career and Technical Education 3 Act of 2006 (20 U.S.C. 2355)). 4 ‘‘(17) Alignment and integration of career and 5 technical education programs with programs of 6 study leading to a bachelor’s degree, graduate de- 7 gree, or professional degree. 8 ‘‘(18) Developing or expanding access to dual 9 or concurrent enrollment programs and early college 10 high school programs. 11 ‘‘(19) Pay for success initiatives that improve 12 time to completion and increase graduation rates.’’; 13 and 14 (B) in subsection (c), by adding at the end 15 the following: 16 ‘‘(4) SCHOLARSHIP.—An institution that uses 17 grant funds provided under this part to establish or 18 increase an endowment fund may use the income 19 from such endowment fund to provide scholarships 20 to students for the purposes of attending such insti- 21 tution, 22 331(c)(3)(B)(i).’’; 23 24 08:59 Dec 01, 2017 to the limitation in section (3) in section 504, by striking subsection (a) and inserting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 subject Jkt 000000 (680541 26) PO 00000 Frm 00498 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 499 1 ‘‘(a) AWARD PERIOD.—The Secretary may award a 2 grant to a Hispanic-serving institution under this part for 3 a period of 5 years. Any funds awarded under this part 4 that are not expended or used, before the date that is 10 5 years after the date on which the grant was awarded, for 6 the purposes for which the funds were paid shall be repaid 7 to the Treasury.’’; and 8 (4) in section 505, by striking ‘‘this title’’ each 9 place such term appears and inserting ‘‘this part’’. 10 SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNI- 11 TIES FOR HISPANIC AMERICANS. 12 Part B of title V (20 U.S.C. 1102 et seq.) is amend- 13 ed— 14 (1) in section 513— 15 (A) by striking paragraph (1) and insert- 16 ing the following: 17 ‘‘(1) The activities described in (1) through (4), 18 (11), and (19) of section 503(b).’’; 19 (B) by striking paragraphs (2) and (3); 20 and 21 (C) redesignating paragraphs (4) 22 through (8) as paragraphs (2) through (6), re- 23 spectively; and 24 (D) in paragraph (4) (as so redesignated), 25 by striking ‘‘Creating’’ and all that follows g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 by 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00499 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 500 1 through ‘‘technologies,’’ and inserting ‘‘Innova- 2 tive learning models and creating or improving 3 facilities for Internet or other innovative tech- 4 nologies,’’; and 5 (2) in section 514— 6 (A) by striking subsection (b) and insert- 7 ing the following: 8 ‘‘(b) DURATION.—The Secretary may award a grant 9 to a Hispanic-serving institution under this part for a pe10 riod of 5 years. Any funds awarded under this part that 11 are not expended or used for the purposes for which the 12 funds were paid within 10 years following the date on 13 which the grant was awarded shall be repaid to the Treas14 ury.’’; and 15 (B) by adding at the end the following: 16 ‘‘(d) SPECIAL RULE.—No Hispanic-serving institu- 17 tion that is eligible for and receives funds under this part 18 may receive funds under part A or B of title III during 19 the period for which funds under this part are awarded.’’. 20 SEC. 503. GENERAL PROVISIONS. 21 Part C of title V (20 U.S.C. 1103 et seq.) is amend- 22 ed— 23 (1) in section 521(c)(7)— 24 (A) by striking subparagraph (C); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00500 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 501 1 (B) by redesignating subparagraphs (D) 2 and (E) as subparagraphs (C) and (D), respec- 3 tively; and 4 (C) in subparagraph (D), as so redesig- 5 nated, by striking ‘‘subparagraph (D)’’ and in- 6 serting ‘‘subparagraph (C)’’; 7 (2) in section 522(b)— 8 (A) in the subsection heading, by inserting 9 ‘‘; 10 COMPLETION after ‘‘EXPENDI- TURES’’; 11 (B) in paragraph (1), by inserting ‘‘or 12 502(a)(2)(C)’’ after ‘‘502(a)(2)(A)(ii)’’; and 13 (C) in paragraph (2)— 14 (i) in the paragraph heading, by in- 15 serting ‘‘AND 16 ‘‘EXPENDITURES’’; COMPLETION RATES’’ after 17 (ii) in the matter preceding subpara- 18 graph (A), by inserting ‘‘or 502(a)(2)(C)’’ 19 after ‘‘502(a)(2)(A)(ii)’’; and 20 (iii) in subparagraph (A), by inserting 21 ‘‘or 22 ‘‘502(a)(2)(A)’’; 23 24 502(a)(2)(C)’’ after and inserting ‘‘section 504’’; and (4) in section 528— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 section (3) in section 524(c), by striking ‘‘section 505’’ 25 VerDate 0ct 09 2002 RATES’’ Jkt 000000 (680541 26) PO 00000 Frm 00501 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 502 1 (A) in subsection (a), by striking ‘‘parts A 2 and C’’ and all that follows through the period 3 at the end and inserting ‘‘parts A and C, 4 $107,795,000 for each of fiscal years 2019 5 through 2024.’’; and 6 (B) in subsection (b), by striking ‘‘part B’’ 7 and all that follows through the period at the 8 end and inserting ‘‘part B, $9,671,000 for each 9 of fiscal years 2019 through 2024.’’. 11 TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 12 SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD- 10 13 IES. 14 15 (a) GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS PROGRAMS.—Section 602 (20 AND 16 U.S.C. 1122) is amended— 17 18 (1) in subsection (a)(4)(F), by inserting ‘‘(C),’’ after ‘‘(B),’’; and 19 (2) in subsection (e)— 20 (A) by redesignating paragraphs (1) and 21 (2) as subparagraphs (A) and (B), respectively, 22 and realigning such subparagraphs so as to be 23 indented 4 ems from the left margin; 24 (B) by striking ‘‘(e) APPLICATION.—Each 25 institution’’ and inserting the following: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00502 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 503 1 ‘‘(e) APPLICATION.— 2 3 ‘‘(1) SUBMISSION; CONTENTS.—Each institu- tion’’; and 4 (C) by adding at the end the following new 5 paragraph: 6 ‘‘(2) APPROVAL.—The Secretary may approve 7 an application for a grant if an institution, in its ap- 8 plication, provides adequate assurances that it will 9 comply with paragraph (1)(A). The Secretary shall 10 use the requirement of paragraph (1)(A) as part of 11 the application evaluation, review, and approval 12 process when determining grant recipients for initial 13 funding and continuation awards.’’. 14 (b) DISCONTINUATION OF CERTAIN PROGRAMS.— 15 Part A of title VI (20 U.S.C. 1121 et seq.) is amended— 16 (1) by striking section 604; 17 (2) by striking section 606; 18 (3) by striking section 609; and 19 (4) by striking section 610. 20 (c) CONFORMING AMENDMENT.—Part A of title VI 21 (20 U.S.C. 1121 et seq.) is further amended by redesig22 nating sections 605, 607, and 608 as sections 604, 605, 23 and 606, respectively. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00503 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 504 1 SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO- 2 GRAMS. 3 4 (a) CENTERS CATION.—Section FOR INTERNATIONAL BUSINESS EDU- 612 (20 U.S.C. 1130–1) is amended— 5 (1) in subsection (f)(3), by inserting ‘‘and a 6 wide range of views’’ after ‘‘diverse perspectives’’; 7 and 8 (2) by adding at the end the following new sub- 9 section: 10 ‘‘(g) APPROVAL.—The Secretary may approve an ap- 11 plication for a grant if an institution, in its application, 12 provides adequate assurances that it will comply with sub13 section (f)(3). The Secretary shall use the requirement of 14 subsection (f)(3) as part of the application evaluation, re15 view, and approval process when determining grant recipi16 ents for initial funding and continuation awards.’’. 17 (b) DISCONTINUATION OF CERTAIN PROGRAMS.— 18 Part B of title VI (20 U.S.C. 1130 et seq.) is amended 19 by striking sections 613 and 614. 20 SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTI- 21 TUTE FOR INTERNATIONAL PUBLIC POLICY. 22 Part C of title VI (20 U.S.C. 1131 et seq.) is re- 23 pealed. 24 SEC. 604. GENERAL PROVISIONS. 25 (a) DEFINITIONS.—Section 631(a) (20 U.S.C. 26 1132(a)) is amended— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00504 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 505 1 (1) by striking paragraphs (5) and (9); 2 (2) in paragraph (8), by inserting ‘‘and’’ after 3 the semicolon at the end; and 4 (3) by redesignating paragraphs (6), (7), (8), 5 and (10) as paragraphs (5), (6), (7), and (8), re- 6 spectively. 7 (b) SPECIAL RULE.—Section 632(2) (20 U.S.C. 8 1132–1(2)) is amended by inserting ‘‘substantial’’ before 9 ‘‘need’’. 10 (c) REPORTS.—Section 636 (20 U.S.C. 1132–5) is 11 amended— 12 (1) by inserting ‘‘(a) BIENNIAL REPORT 13 AREAS 14 retary’’; and 15 OF ON NATIONAL NEED.—’’ before ‘‘The Sec- (2) by adding at the end the following new sub- 16 section: 17 ‘‘(b) ANNUAL REPORT 18 VERSE 19 QUIREMENT.—Not ON COMPLIANCE WITH DI- PERSPECTIVES AND A WIDE RANGE OF VIEWS RElater than 180 days after the date of 20 the enactment of this subsection, and annually thereafter, 21 the Secretary shall submit to the authorizing committees 22 a report that identifies the efforts taken to ensure recipi23 ents’ compliance with the requirements under this title re24 lating to the ‘diverse perspectives and a wide range of 25 views’ requirement, including any technical assistance the g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00505 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 506 1 Department has provided, any regulatory guidance the 2 Department has issued, and any monitoring the Depart3 ment has conducted. Such report shall be made available 4 to the public.’’. 5 (d) REPEAL 6 VANCED 7 GRAM.—Section 8 OF SCIENCE AND TECHNOLOGY AD- FOREIGN LANGUAGE EDUCATION GRANT PRO637 (20 U.S.C. 1132–6) is repealed. (e) REPORTING BY INSTITUTIONS.—Section 638(b) 9 (20 U.S.C. 1132–7(b)) is amended to read as follows: 10 ‘‘(b) DATA REQUIRED.— 11 ‘‘(1) IN as provided in para- 12 graph (5), the Secretary shall require an institution 13 of higher education referred to in subsection (a) to 14 file a disclosure report under paragraph (2) with the 15 Secretary on January 31 or July 31, whichever is 16 sooner, with respect to the date on which such insti- 17 tution received a contribution— 18 ‘‘(A) less than 7 months from such date; 19 and 20 ‘‘(B) greater than 30 days from such date. 21 ‘‘(2) CONTENTS OF REPORT.—Each report to 22 the Secretary required by this section shall contain 23 the following information with respect to the institu- 24 tion of higher education filing the report: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Except 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00506 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 507 1 ‘‘(A) For gifts received from, or contracts 2 entered into with a foreign source other than a 3 foreign government, the following information: 4 ‘‘(i) The aggregate dollar amount of 5 such gifts and contracts attributable to 6 each country, including the fair market 7 value of the services of staff members, 8 textbooks, and other in-kind gifts. 9 ‘‘(ii) The legal name of the entity pro- 10 viding any such gift or contract. 11 ‘‘(iii) The country to which the gift is 12 attributable. 13 ‘‘(B) For gifts received from, or contracts 14 entered into with, a foreign government, the ag- 15 gregate dollar amount of such gifts and con- 16 tracts received from each foreign government 17 and the legal name of the entity providing any 18 such gift or contract. 19 ‘‘(C) In the case of an institution of higher 20 education that is owned or controlled by a for- 21 eign source— 22 ‘‘(i) the identity of the foreign source; 23 ‘‘(ii) the date on which the foreign 24 source assumed ownership or control of the 25 institution; and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00507 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 508 1 ‘‘(iii) any changes in program or 2 structure resulting from the change in 3 ownership or control. 4 ‘‘(3) DISCLOSURES FOR RE- 5 STRICTED 6 standing paragraph (1), when an institution of high- 7 er education receives a restricted or conditional gift 8 or contract from a foreign source, the institution 9 shall disclose the following: AND CONDITIONAL GIFTS.—Notwith- 10 ‘‘(A) In the case of gifts received from, or 11 contracts entered into with, a foreign source 12 other than a foreign government, the amount, 13 the date, and a description of such conditions 14 or restrictions. 15 ‘‘(B) The country to which the gift is at- 16 tributable. 17 ‘‘(C) In the case of gifts received from, or 18 contracts entered into with, a foreign govern- 19 ment, the amount, the date, a description of 20 such conditions or restrictions, and the name of 21 the foreign government. 22 ‘‘(4) ATTRIBUTION OF GIFTS.—For purposes of 23 this subsection, the country to which a gift is attrib- 24 utable is— 25 ‘‘(A) the country of citizenship; or g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 ADDITIONAL 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00508 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 509 1 ‘‘(B) if the information described in sub- 2 paragraph (A) is not known— 3 ‘‘(i) the principal residence for a for- 4 eign source who is a natural person; or 5 ‘‘(ii) the principal place of business 6 and country of incorporation for a foreign 7 source that is a legal entity. 8 9 ‘‘(5) RELATION OTHER REPORTING RE- QUIREMENTS.— 10 ‘‘(A) STATE REQUIREMENTS.—If an insti- 11 tution described under subsection (a) is located 12 within a State that has enacted requirements 13 for public disclosure of gifts from, or contracts 14 with, a foreign source that are substantially 15 similar to the requirements of this section, as 16 determined by the Secretary, a copy of the dis- 17 closure report filed with the State may be filed 18 with the Secretary in lieu of a report required 19 under paragraph (1). 20 ‘‘(B) ASSURANCES.—With respect to an 21 institution that submits a copy of a disclosure 22 report pursuant to subparagraph (A), the State 23 in which such institution is located shall provide 24 to the Secretary such assurances as the Sec- 25 retary may require to establish that the institu- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TO 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00509 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 510 1 tion has met the requirements for public disclo- 2 sure under the laws of such State. 3 ‘‘(C) OF OTHER FEDERAL RE- 4 PORTS.—If 5 or enters into a contract with, a foreign source, 6 where any other Federal law or regulation re- 7 quires a report containing requirements sub- 8 stantially similar to the requirements under this 9 section, as determined by the Secretary, a copy 10 of the report may be filed with the Secretary in 11 lieu of a report required under subsection (b). 12 ‘‘(6) PUBLIC 13 an institution receives a gift from, INSPECTION.—A disclosure report required by this section shall be— 14 ‘‘(A) available as public records open to in- 15 spection and copying during business hours; 16 ‘‘(B) available electronically; and 17 ‘‘(C) made available under subparagraphs 18 (A) and (B) not later than 30 days after the 19 Secretary receives such report. 20 ‘‘(7) ENFORCEMENT.— 21 ‘‘(A) COMPEL COMPLIANCE.—Whenever it 22 appears that an institution has failed to comply 23 with the requirements of this section, including 24 any rule or regulation promulgated under this 25 section, a civil action may be brought by the At- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 USE 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00510 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 511 1 torney General, at the request of the Secretary, 2 in an appropriate district court of the United 3 States, or the appropriate United States court 4 of any territory or other place subject to the ju- 5 risdiction of the United States, to request such 6 court to compel compliance with the require- 7 ments of this section. 8 ‘‘(B) COSTS.—For knowing or willful fail- 9 ure to comply with the requirements of this sec- 10 tion, including any rule or regulation promul- 11 gated thereunder, an institution shall pay to the 12 Treasury of the United States the full costs to 13 the United States of obtaining compliance, in- 14 cluding all associated costs of investigation and 15 enforcement. 16 ‘‘(8) DEFINITIONS.—In this section: 17 ‘‘(A) term ‘contract’ 18 means any agreement for the acquisition by 19 purchase, lease, gift, or barter of property or 20 services by the foreign source, for the direct 21 benefit or use of either of the parties. 22 ‘‘(B) FOREIGN 23 term ‘for- ‘‘(i) a foreign government, including 25 an agency of a foreign government; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) 08:59 Dec 01, 2017 SOURCE.—The eign source’ means— 24 VerDate 0ct 09 2002 CONTRACT.—The Jkt 000000 (680541 26) PO 00000 Frm 00511 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 512 1 ‘‘(ii) a legal entity, governmental or 2 otherwise, created solely under the laws of 3 a foreign state or states; 4 ‘‘(iii) an individual who is not a cit- 5 izen or a national of the United States or 6 a trust territory or protectorate thereof; 7 and 8 ‘‘(iv) an agent, including a subsidiary 9 or affiliate of a foreign legal entity, acting 10 on behalf of a foreign source. 11 ‘‘(C) GIFT.—The term ‘gift’ means any 12 gift of money, property, human resources, or 13 payment of any staff. 14 ‘‘(D) RESTRICTED 15 term ‘restricted or conditional’, with respect to 16 an endowment, gift, grant, contract, award, 17 present, or property of any kind means includ- 18 ing as a condition on such endowment, gift, 19 grant, contract, award, present, or property 20 provisions regarding— 21 ‘‘(i) the employment, assignment, or 22 termination of faculty; 23 ‘‘(ii) the establishment of depart- 24 ments, centers, research or lecture pro- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OR CONDITIONAL.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00512 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 513 1 grams, institutes, instructional programs, 2 or new faculty positions; 3 ‘‘(iii) the selection or admission of 4 students; or 5 ‘‘(iv) the award of grants, loans, 6 scholarships, fellowships, or other forms of 7 financial aid restricted to students of a 8 specified country, religion, sex, ethnic ori- 9 gin, or political opinion.’’. 10 (f) REDESIGNATIONS.—Part D of title VI (20 U.S.C. 11 1132 et seq.) is amended— 12 (1) by redesignating such part as part C; and 13 (2) by redesignating sections 631, 632, 633, 14 634, 635, 636, and 638 as sections 621, 622, 623, 15 624, 625, 626, and 627, respectively. 16 (g) CONTINUATION AWARDS.—Part C of title VI (20 17 U.S.C. 1131 et seq.), as so redesignated by subsection 18 (f)(1) of this section, is amended by adding at the end 19 the following new sections: 20 ‘‘SEC. 628. CONTINUATION AWARDS. 21 ‘‘The Secretary shall make continuation awards 22 under this title for the second and succeeding years of a 23 grant only after determining that the recipient is making 24 satisfactory progress in carrying out the grant. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00513 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 514 1 ‘‘SEC. 629. AUTHORIZATION OF APPROPRIATIONS. 2 ‘‘There is authorized to be appropriated to carry out 3 this title $61,525,000 for each of fiscal years 2019 4 through 2024.’’. 7 TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS 8 SEC. 701. GRADUATE EDUCATION PROGRAMS. 5 6 9 (a) REPEAL 10 GRAM.—Subpart OF JACOB K. JAVITS FELLOWSHIP PRO- 1 of part A of title VII (20 U.S.C. 1134 11 et seq.) is repealed. 12 13 (b) REPEAL CATIONAL OF THURGOOD MARSHALL LEGAL EDU- OPPORTUNITY PROGRAM.—Subpart 3 of part 14 A of title VII (20 U.S.C. 1136) is repealed. 15 16 (c) AUTHORIZATION OF APPROPRIATIONS FOR GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.—Sec- 17 tion 716 (20 U.S.C. 1135e) is amended striking 18 ‘‘$35,000,000’’ and all that follows through the period at 19 the end and inserting ‘‘$28,047,000 for each of fiscal 20 years 2019 through 2024.’’. 21 (d) REDESIGNATIONS.—Part A of title VII (20 22 U.S.C. 1134 et seq.) is amended— 23 24 (1) by redesignating subparts 2, 4, and 5 as subparts 1, 2, and 3 respectively; 25 26 (2) by redesignating sections 711 through 716 as sections 701 through 706, respectively; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00514 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 515 1 2 (3) by redesignating sections 723 through 725 as sections 711 through 713, respectively; and 3 4 (4) by redesignating section 731 as section 721. (e) AMENDMENT OF CROSS REFERENCES.—Part A 5 of title VII (20 U.S.C. 1134 et seq.) is amended— 6 (1) in section 703(b)(8), as so redesignated, by 7 striking ‘‘section 715’’ and inserting ‘‘section 705’’; 8 (2) in section 704(c)), as so redesignated— 9 (A) by striking ‘‘section 715(a)’’ and in- 10 serting ‘‘section 705(a)’’; and 11 (B) by striking ‘‘section 713(b)(2)’’ and in- 12 serting ‘‘section 703(b)(2)’’; 13 (3) in section 711(e), as so redesignated, by 14 striking ‘‘724’’ and inserting ‘‘712’’; 15 16 (4) in section 712(e), as so redesignated, by striking ‘‘723’’ and inserting ‘‘711’’; 17 (5) in section 713, as so redesignated— 18 (A) in subsection (a), by striking ‘‘section 19 723’’ and all that follows through the period at 20 the end and inserting ‘‘section 711, $7,500,000 21 for fiscal year 2019 and each of the five suc- 22 ceeding fiscal years.’’; and 23 (B) in subsection (b), by striking ‘‘section 24 724’’ and inserting ‘‘section 712’’; and 25 (6) in section 721, as so redesignated— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00515 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 516 1 (A) in the section heading, by striking 2 ‘‘THROUGH 4’’ and inserting ‘‘AND 2’’; 3 (B) by striking ‘‘subparts 1 through 4’’ 4 each place such term appears and inserting 5 ‘‘subparts 1 and 2’’; 6 (c) in subsection (c)— 7 (I) by striking ‘‘section 703(b) or 8 715(a)’’ and inserting ‘‘section 705(a)’’; 9 and 10 (ii) by striking ‘‘subparts 1 or 2, re- 11 spectively,’’ and inserting ‘‘subpart 1’’; and 12 (D) in subsection (d), by striking ‘‘subpart 13 1, 2, 3, or 4’’ and inserting ‘‘subpart 1 or 2’’. 14 SEC. 702. REPEAL OF FUND FOR THE IMPROVEMENT OF 15 POSTSECONDARY EDUCATION. 16 Part B of title VII (20 U.S.C. 1138 et seq.) is re- 17 pealed. 18 SEC. 703. PROGRAMS FOR STUDENTS WITH DISABILITIES. 19 (a) REDESIGNATIONS.— 20 (1) SUBPART.—Part D of title VII (20 U.S.C. 21 1140 et seq.) is amended by striking subparts 1 and 22 3 and redesignating subparts 2 and 4 as subparts 1 23 and 2, respectively. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00516 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 517 1 (2) PART.—Part D of title VII (20 U.S.C. 2 1140 et seq.), as amended by paragraph (1), is re- 3 designated as part B of such Act. 4 (b) MODEL TRANSITION PROGRAMS; COORDINATING 5 CENTER.— 6 7 (1) PURPOSE.—Section 766 (20 U.S.C. 1140f) is redesignated as section 731 of such Act. 8 (2) MODEL 9 POSTSECONDARY 10 COMPREHENSIVE TRANSITION AND PROGRAMS.—Section 767 (20 U.S.C. 1140g) is amended— 11 (A) by redesignating such section as sec- 12 tion 732 of such Act; 13 (B) in subsection (a)(1)— 14 (i) by striking ‘‘section 769(a)’’ and 15 inserting ‘‘section 735(a)’’; and 16 (ii) by striking ‘‘institutions of higher 17 education (or consortia of institutions of 18 higher education), to enable the institu- 19 tions or consortia’’ and inserting ‘‘eligible 20 applicants, to enable the eligible appli- 21 cants’’; 22 (C) by striking subsection (b) and insert- 23 24 ing the following: ‘‘(b) APPLICATION.—An eligible applicant desiring a 25 grant under this section shall submit to the Secretary, at g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00517 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 518 1 such time and in such manner as the Secretary may re2 quire, an application that— 3 ‘‘(1) describes how the model program to be op- 4 erated by the eligible applicant with grant funds re- 5 ceived under this section will meet the requirements 6 of subsection (d); 7 ‘‘(2) describes how the model program proposed 8 to be operated is based on the demonstrated needs 9 of students with intellectual disabilities served by the 10 eligible applicant and potential employers; 11 ‘‘(3) describes how the model program proposed 12 to be operated will coordinate with other Federal, 13 State, and local programs serving students with in- 14 tellectual disabilities, including programs funded 15 under the Rehabilitation Act of 1973 (29 U.S.C. 16 701 et seq.); 17 ‘‘(4) describes how the model program will be 18 sustained once the grant received under this section 19 ends; 20 ‘‘(5) if applicable, describes how the eligible ap- 21 plicant will meet the preferences described in sub- 22 section (c)(3); and 23 ‘‘(6) demonstrates the ability of the eligible ap- 24 plicant to meet the requirement under subsection 25 (e).’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00518 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 519 1 (D) in subsection (c)(3)— 2 (i) in subparagraph (B), by striking 3 ‘‘institution of higher education’’ and in- 4 serting ‘‘eligible applicant’’; and 5 (ii) in subparagraph (C), by striking 6 ‘‘students attending the institution of high- 7 er education’’ and inserting ‘‘the eligible 8 applicant’s students’’; 9 (E) in subsection (d)— 10 (i) in the matter preceding paragraph 11 (1), by striking ‘‘An institution of higher 12 education (or consortium)’’ and inserting 13 ‘‘An eligible applicant’’; 14 (ii) in paragraph (2), by striking ‘‘in- 15 stitution of higher education’s’’ and insert- 16 ing ‘‘eligible applicant’s’’; 17 (iii) in paragraph (3)(D), by striking 18 ‘‘that lead to gainful employment’’; 19 (iv) in paragraph (5), by striking 20 ‘‘section 777(b)’’ and inserting ‘‘section 21 734’’; 22 (v) in paragraph (6), by inserting 23 ‘‘and’’ after the semicolon at the end; 24 (vi) by striking paragraph (7); and g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00519 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 520 1 (vii) by redesignating paragraph (8) 2 as paragraph (7); 3 (F) in subsection (e), by striking ‘‘An in- 4 stitution of higher education (or consortium)’’ 5 and inserting ‘‘An eligible applicant’’; 6 (G) in subsection (f), by striking ‘‘Not 7 later than five years after the date of the first 8 grant awarded under this section’’ and inserting 9 ‘‘Not less often than once every 5 years’’; and 10 (H) by adding at the end the following new 11 12 subsection: ‘‘(g) DEFINITION.—For purposes of this subpart, the 13 term ‘eligible applicant’ means an institution of higher 14 education or a consortium of institutions of higher edu15 cation.’’. 16 (3) REDESIGNATIONS.—Sections 768 and 769 17 (20 U.S.C. 1140i) are redesignated as sections 733 18 and 735, respectively. 19 (4) COORDINATING 1 of 20 part D of title VII, as so redesignated by subsection 21 (a)(1), is amended by inserting after section 733 (as 22 so redesignated by paragraph (3)) the following new 23 section: g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 CENTER.—Subpart 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00520 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 521 1 ‘‘SEC. 734. COORDINATING CENTER. 2 ‘‘(a) PURPOSE.—It is the purpose of this section to 3 provide technical assistance and information on best and 4 promising practices to eligible applicants awarded grants 5 under section 732. 6 ‘‘(b) COORDINATING CENTER.— 7 ‘‘(1) DEFINITION 8 this section, the term ‘eligible entity’ means an enti- 9 ty, or a partnership of entities, that has dem- 10 onstrated expertise in the fields of— 11 ‘‘(A) higher education; 12 ‘‘(B) the education of students with intel- 13 lectual disabilities; 14 ‘‘(C) the development of comprehensive 15 transition and postsecondary programs for stu- 16 dents with intellectual disabilities; and 17 ‘‘(D) evaluation and technical assistance. 18 ‘‘(2) IN GENERAL.—From amounts appro- 19 priated under section 735, the Secretary shall enter 20 into a cooperative agreement, on a competitive basis, 21 with an eligible entity for the purpose of establishing 22 a coordinating center for institutions of higher edu- 23 cation that offer inclusive comprehensive transition 24 and postsecondary programs for students with intel- 25 lectual disabilities, including eligible applicants re- 26 ceiving grants under section 732, to provide— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF ELIGIBLE ENTITY.—In 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00521 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 522 1 ‘‘(A) recommendations related to the devel- 2 opment of standards for such programs; 3 ‘‘(B) technical assistance for such pro- 4 grams; and 5 ‘‘(C) evaluations for such programs. 6 ‘‘(3) ADMINISTRATION.—The program under 7 this section shall be administered by the office in the 8 Department that administers other postsecondary 9 education programs. 10 ‘‘(4) DURATION.—A cooperative agreement en- 11 tered into pursuant to this section shall have a term 12 of 5 years. 13 ‘‘(5) REQUIREMENTS 14 MENT.—The 15 pursuant to this section shall provide that the eligi- 16 ble entity entering into such agreement shall estab- 17 lish and maintain a coordinating center that shall— 18 ‘‘(A) serve as the technical assistance enti- 19 ty for all comprehensive transition and postsec- 20 ondary programs for students with intellectual 21 disabilities; cooperative agreement entered into 22 ‘‘(B) provide technical assistance regarding 23 the development, evaluation, and continuous im- 24 provement of such programs; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF COOPERATIVE AGREE- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00522 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 523 1 ‘‘(C) develop an evaluation protocol for 2 such programs that includes qualitative and 3 quantitative methodologies for measuring stu- 4 dent outcomes and program strengths in the 5 areas of academic enrichment, socialization, 6 independent living, and competitive or sup- 7 ported employment; 8 ‘‘(D) assist recipients of grants under sec- 9 tion 732 in efforts to award a meaningful cre- 10 dential to students with intellectual disabilities 11 upon the completion of such programs, which 12 credential shall take into consideration unique 13 State factors; 14 ‘‘(E) develop recommendations for the nec- 15 essary components of such programs, such as— 16 ‘‘(i) academic, vocational, social, and 17 independent living skills; 18 ‘‘(ii) evaluation of student progress; 19 ‘‘(iii) program administration and 20 evaluation; 21 ‘‘(iv) student eligibility; and 22 ‘‘(v) issues regarding the equivalency 23 of a student’s participation in such pro- 24 grams to semester, trimester, quarter, g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00523 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 524 1 credit, or clock hours at an institution of 2 higher education, as the case may be; 3 ‘‘(F) analyze possible funding sources for 4 such programs and provide recommendations to 5 such programs regarding potential funding 6 sources; 7 ‘‘(G) develop model memoranda of agree- 8 ment for use between or among institutions of 9 higher education and State and local agencies 10 providing funding for such programs; 11 ‘‘(H) develop mechanisms for regular com- 12 munication, outreach, and dissemination of in- 13 formation about comprehensive transition and 14 postsecondary programs for students with intel- 15 lectual disabilities under section 732 between or 16 among such programs and to families and pro- 17 spective students; 18 ‘‘(I) host a meeting of all recipients of 19 grants under section 732 not less often than 20 once every 3 years; and 21 ‘‘(J) convene a workgroup to develop and 22 recommend model criteria, standards, and com- 23 ponents of such programs as described in sub- 24 paragraph (E) that are appropriate for the de- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00524 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 525 1 velopment of accreditation standards, which 2 workgroup shall include— 3 ‘‘(i) an expert in higher education; 4 ‘‘(ii) an expert in special education; 5 ‘‘(iii) a representative of a disability 6 organization that represents students with 7 intellectual disabilities; 8 ‘‘(iv) a representative from the Na- 9 tional Advisory Committee on Institutional 10 Quality and Integrity; and 11 ‘‘(v) a representative of a regional or 12 national accreditation agency or associa- 13 tion. 14 ‘‘(6) REPORT.—Not less often than once every 15 5 years, the coordinating center shall report to the 16 Secretary, the authorizing committees, and the Na- 17 tional Advisory Committee on Institutional Quality 18 and Integrity on the recommendations of the 19 workgroup described in paragraph (5)(J).’’. 20 (5) AUTHORIZATION APPROPRIATIONS.— 21 Section 735, as so redesignated by paragraph (3), is 22 amended— 23 (A) in subsection (a), by striking ‘‘such 24 sums as may be necessary for fiscal year 2009’’ g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 OF 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00525 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 526 1 and inserting ‘‘$11,800,000 for fiscal year 2 2019’’; and 3 (B) by striking subsection (b) and insert- 4 5 ing the following: ‘‘(b) RESERVATION OF FUNDS.—For any fiscal year 6 for which appropriations are made for this subpart, the 7 Secretary— 8 ‘‘(1) shall reserve funds to enter into a coopera- 9 tive agreement to establish the coordinating center 10 under section 734, in an amount that is equal to— 11 ‘‘(A) not less than $240,000 for any year 12 in which the amount appropriated to carry out 13 this subpart is $8,000,000 or less; or 14 ‘‘(B) equal to 3 percent of the amount ap- 15 propriated to carry out this subpart for any 16 year in which such amount appropriated is 17 greater than $8,000,000; and 18 ‘‘(2) may reserve funds to award the grant, 19 contract, or cooperative agreement described in sec- 20 tion 737.’’. 21 (c) NATIONAL TECHNICAL ASSISTANCE CENTER.— 22 (1) SUBPART subpart heading 23 for subpart 2 of part D of title VII (20 U.S.C. 24 1140p et seq.), as so redesignated by subsection g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 HEADING.—The 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00526 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 527 1 (a)(1), is amended by striking ‘‘; Coordinating 2 Center’’. 3 4 (2) PURPOSE.—Section 776 (20 U.S.C. 1140p) is amended— 5 (A) by redesignating such section as sec- 6 tion 736 of such Act; and 7 (B) by striking ‘‘grants, contracts, or coop- 8 erative agreements under subpart 1, 2, or 3’’ 9 and inserting ‘‘grants or a cooperative agree- 10 ment under subpart 1’’. 11 (3) NATIONAL 12 tion 777 (20 U.S.C. 1140q) is amended— 13 (A) by redesignating such section as sec- 14 tion 737 of such Act; 15 (B) in the section heading, by striking ‘‘; 16 COORDINATING CENTER’’; 17 (C) in subsection (a)(1), by striking ‘‘ap- 18 propriated under section 778’’ and inserting 19 ‘‘reserved under section 735(b)(2)’’; 20 (D) by amending subsection (a)(3)(D) to 21 read as follows: 22 ‘‘(D) the subject supported by the grants 23 or cooperative agreement authorized in subpart 24 1.’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 TECHNICAL ASSISTANCE.—Sec- 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00527 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 528 1 (E) in subsection (a)(4)(A)(ii), by striking 2 ‘‘subparts 2, 4, and 5’’ and inserting ‘‘subparts 3 2 and 5’’; and 4 (F) in subsection (a)(4)(B), by striking 5 ‘‘grants, contracts, or cooperative agreements 6 authorized under subparts 1, 2, and 3’’ each 7 place it appears and inserting ‘‘grants and co- 8 operative agreement authorized under subpart 9 1’’. 10 (4) AUTHORIZATION 11 12 OF APPROPRIATIONS.— Section 778 (20 U.S.C. 1140r) is repealed. SEC. 704. REPEAL 13 OF COLLEGE ACCESS CHALLENGE GRANT PROGRAM. 14 Part E of title VII (20 U.S.C. 1141) is repealed. 15 TITLE VIII—OTHER REPEALS 16 SEC. 801. REPEAL OF ADDITIONAL PROGRAMS. 17 (a) HIGHER EDUCATION ACT OF 1965.—Title VIII 18 of the Higher Education Act of 1965 (20 U.S.C. 1161a 19 et seq.) is repealed. 20 (b) HIGHER EDUCATION OPPORTUNITY ACT.—The 21 Higher Education Opportunity Act (Public Law 110–315; 22 122 Stat. 3078 et seq.) is amended by repealing sections 23 802 and 803. 24 (c) HIGHER EDUCATION AMENDMENTS OF 1998.— 25 The Higher Education Amendments of 1998 (Public Law g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00528 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 529 1 105–244; 112 Stat. 1581 et seq.) is amended by repealing 2 sections 821 and 841. 3 (d) HIGHER EDUCATION AMENDMENTS OF 1992.— 4 The Higher Education Amendments of 1992 (Public Law 5 102–325; 106 Stat. 448 et seq.) is amended by repealing 6 section 1543. 7 (e) UNITED STATES INSTITUTE OF PEACE ACT.— 8 The United States Institute of Peace Act (22 U.S.C. 4601 9 et seq.) is repealed. 11 TITLE IX—AMENDMENTS TO OTHER LAWS 12 PART A—EDUCATION OF THE DEAF ACT OF 1986 10 13 SEC. 901. EDUCATION OF THE DEAF ACT OF 1986. 14 (a) BOARD OF TRUSTEES.—Section 103(a)(1) of the 15 Education of the Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) 16 is amended— 17 (1) in the matter preceding subparagraph (A), 18 by striking ‘‘twenty-one’’ and inserting ‘‘twenty- 19 three’’; 20 (2) in subparagraph (A)— 21 (A) by striking ‘‘three public’’ and insert- 22 ing ‘‘four public’’; 23 (B) by striking ‘‘one shall’’ and all that 24 follows through ‘‘, and’’ and inserting ‘‘two 25 shall be United States Senators, of whom one g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00529 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 530 1 shall be appointed by the Majority Leader of 2 the Senate and one shall be appointed by the 3 Minority Leader of the Senate, and’’; and 4 (C) by striking ‘‘appointed by the Speaker 5 of the House of Representatives’’ and inserting 6 ‘‘, of whom one shall be appointed by the 7 Speaker of the House of Representatives and 8 one shall be appointed by the Minority Leader 9 of the House of Representatives’’; and 10 (3) in subparagraph (B), by striking ‘‘eighteen’’ 11 and inserting ‘‘nineteen’’. 12 (b) LAURENT CLERC NATIONAL DEAF EDUCATION 13 CENTER.—Section 104(b)(5) of the Education of the Deaf 14 Act of 1986 (20 U.S.C. 4304(b)(5)) is amended to read 15 as follows: 16 ‘‘(5) The University, for purposes of the ele- 17 mentary and secondary education programs carried 18 out by the Clerc Center, shall— 19 ‘‘(A)(i)(I) provide an assurance to the Sec- 20 retary that it has adopted and is implementing 21 challenging State academic standards that meet 22 the requirements of section 1111(b)(1) of the 23 Elementary and Secondary Education Act of 24 1965 (20 U.S.C. 6311(b)(1)); g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00530 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 531 1 ‘‘(II) demonstrate to the Secretary that the 2 University is implementing a set of high-quality 3 student academic assessments in mathematics, 4 reading or language arts, and science, and any 5 other subjects chosen by the University, that 6 meet the requirements of section 1111(b)(2) of 7 such Act (20 U.S.C. 6311(b)(2)); and 8 ‘‘(III) demonstrate to the Secretary that 9 the University is implementing an account- 10 ability system consistent with section 1111(c) of 11 such Act (20 U.S.C. 6311(c)); or 12 ‘‘(ii)(I) select the challenging State aca- 13 demic standards and State academic assess- 14 ments of a State, adopted and implemented, as 15 appropriate, pursuant to paragraphs (1) and 16 (2) of section 1111(b) of such Act (20 U.S.C. 17 6311(b)); and 18 ‘‘(II) adopt the accountability system, con- 19 sistent with section 1111(c) of such Act (20 20 U.S.C. 6311(c)), of such State; and 21 ‘‘(B) publicly report, except in a case in 22 which such reporting would not yield statis- 23 tically reliable information or would reveal per- 24 sonally identifiable information about an indi- 25 vidual student— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00531 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 532 1 ‘‘(i) the results of the academic as- 2 sessments implemented under subpara- 3 graph (A); and 4 ‘‘(ii) the results of the annual evalua- 5 tion of the programs at the Clerc Center, 6 as determined using the accountability sys- 7 tem adopted under subparagraph (A).’’. 8 (c) REPEAL OF CULTURAL EXPERIENCES GRANTS 9 PROGRAM.—Part C of title I of the Education of the Deaf 10 Act of 1986 (20 U.S.C. 4341) is repealed. 11 12 (d) REPEAL TIONS FOR OF AUTHORIZATION MONITORING AND OF APPROPRIA- EVALUATION.—Subsection 13 (c) of section 205 of the Education of the Deaf Act of 14 1986 (20 U.S.C. 4355(c)) is repealed. 15 (e) FEDERAL ENDOWMENT FUNDS.—Section 207 of 16 the Education of the Deaf Act of 1986 (20 U.S.C. 4357) 17 is amended— 18 (1) in the heading of subsection (b), by striking 19 ‘‘FEDERAL PAYMENTS’’ and inserting ‘‘PAYMENTS’’; 20 (2) in subsection (b), by striking paragraphs 21 (1) and (2) and inserting the following: 22 ‘‘(1) From amounts provided by the Secretary 23 from funds appropriated under subsections (a) and 24 (b) of section 212, respectively, the University and 25 NTID may make payments, in accordance with this g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00532 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 533 1 section, to the Federal endowment fund of the insti- 2 tution involved. 3 ‘‘(2) Subject to paragraph (3), in any fiscal 4 year, the total amount of payments made under 5 paragraph (1) to the Federal endowment fund may 6 not exceed the total amount contributed to the fund 7 from non-Federal sources during such fiscal year. 8 ‘‘(3) For purposes of paragraph (2), the trans- 9 fer of funds by an institution involved to the Federal 10 endowment fund from another endowment fund of 11 such institution shall not be considered a contribu- 12 tion from a non-Federal source.’’; 13 (3) in subsection (e), by striking ‘‘Federal pay- 14 ment’’ and inserting ‘‘payment under subsection 15 (b)’’; 16 (4) in subsection (f), in the matter preceding 17 paragraph (1), by striking ‘‘Federal payments’’ and 18 inserting ‘‘payments’’; 19 (5) in subsection (g)(1), by striking ‘‘Federal 20 payments to such fund’’ and inserting ‘‘payments 21 made under subsection (b)’’; 22 (6) by repealing subsection (h); and 23 (7) by redesignating subsection (i) as subsection 24 (h). g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00533 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 534 1 (f) REPEAL NATIONAL STUDY.—Section 211 of OF 2 the Education of the Deaf Act of 1986 (20 U.S.C. 4360) 3 is repealed. 4 (g) AUTHORIZATION OF APPROPRIATIONS.—Section 5 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 6 4360a) is amended— 7 (1) in subsection (a), by striking ‘‘such sums as 8 may be necessary for each of the fiscal years 2009 9 through 2014’’ and inserting ‘‘$121,275,000 for 10 each of the fiscal years 2019 through 2024’’; and 11 (2) in subsection (b), by striking ‘‘such sums as 12 may be necessary for each of the fiscal years 2009 13 through 2014’’ and inserting ‘‘$70,016,000 for each 14 of the fiscal years 2019 through 2024’’. 15 (h) TECHNICAL AMENDMENTS.—The Education of 16 the Deaf Act of 1986 is further amended— 17 (1) section 112(b)(3) (20 U.S.C. 18 4332(b)(3)), by striking ‘‘Education and Labor’’ and 19 inserting ‘‘Education and the Workforce’’; 20 (2) in section 203 (20 U.S.C. 4353)— 21 (A) in the heading of subsection (a), by 22 striking ‘‘GENERAL ACCOUNTING’’ and insert- 23 ing ‘‘GOVERNMENT ACCOUNTABILITY’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 in 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00534 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 535 1 (B) in subsection (a), by striking ‘‘General 2 Accounting’’ and inserting ‘‘Government Ac- 3 countability’’; 4 (C) in subsection (b)(3), by striking ‘‘Edu- 5 cation and Labor’’ and inserting ‘‘Education 6 and the Workforce’’; and 7 (D) in subsection (c)(2)(A), by striking 8 ‘‘Education and Labor’’ and inserting ‘‘Edu- 9 cation and the Workforce’’; 10 (3) in section 204 (20 U.S.C. 4354), by striking 11 ‘‘Education and Labor’’ and inserting ‘‘Education 12 and the Workforce’’; 13 (4) in section 208(a) (20 U.S.C. 4359(a)), by 14 striking ‘‘Education and Labor’’ and inserting 15 ‘‘Education and the Workforce’’; and 16 (5) in section 210(b) (20 U.S.C. 4359b(b)), by 17 striking ‘‘Education and Labor’’ and inserting 18 ‘‘Education and the Workforce’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00535 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 536 1 PART B—TRIBALLY CONTROLLED COLLEGES 2 AND UNIVERSITIES ASSISTANCE ACT OF 1978; 3 DINE′ COLLEGE ACT 4 SEC. 911. TRIBALLY CONTROLLED COLLEGES AND UNIVER- 5 SITIES ASSISTANCE ACT OF 1978. 6 (a) DEFINITIONS.—Section 2 of the Tribally Con- 7 trolled Colleges and Universities Assistance Act of 1978 8 (25 U.S.C. 1801) is amended— 9 (1) in subsection (a)— 10 (A) in paragraph (7), by adding ‘‘and’’ at 11 the end; 12 (B) in paragraph (8), by striking ‘‘; and’’ 13 and inserting a period; and 14 (C) by striking paragraph (9); and 15 (2) in subsection (b)— 16 (A) by amending paragraph (1) to read as 17 follows: 18 ‘‘(1) Such number shall be calculated based on 19 the number of Indian students who are enrolled— 20 ‘‘(A) at the conclusion of the third week of 21 each academic term; or 22 ‘‘(B) on the fifth day of a shortened pro- 23 gram beginning after the conclusion of the third 24 full week of an academic term.’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00536 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 537 1 (B) in paragraph (3), by striking ‘‘for pur- 2 poses of obtaining’’ and inserting ‘‘solely for the 3 purpose of obtaining’’; and 4 (C) by inserting after paragraph (5), the 5 following: 6 ‘‘(6) Enrollment data from the prior-prior aca- 7 demic year shall be used.’’. 8 (b) AUTHORIZATION OF APPROPRIATIONS.—The 9 Tribally Controlled Colleges and Universities Assistance 10 Act of 1978 (25 U.S.C. 1801 et seq.) is amended by in11 serting after section 2 (25 U.S.C. 1801), the following: 12 ‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS. 13 ‘‘(a) TITLES I AND IV.—There are authorized to be 14 appropriated $57,412,000 for each of fiscal years 2019 15 through 2024 to carry out titles I and IV. 16 ‘‘(b) TITLE V.—There are authorized to be appro- 17 priated $7,414,000 for each of fiscal years 2019 through 18 2024 to carry out title V.’’.’’. 19 (c) REPEAL OF PLANNING GRANTS.—Section 104 of 20 the Tribally Controlled Colleges and Universities Assist21 ance Act of 1978 (25 U.S.C. 1804a) is repealed. 22 23 (d) GRANTS AND TO TRIBALLY CONTROLLED COLLEGES UNIVERSITIES.—Section 107 of the Tribally Con- 24 trolled Colleges and Universities Assistance Act of 1978 25 (25 U.S.C. 1807) is amended— g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00537 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 538 1 (1) by striking subsection (c); and 2 (2) by redesignating subsection (d) as sub- 3 section (c). 4 (e) AMOUNT OF GRANTS.—Section 108(b)(1) of the 5 Tribally Controlled Colleges and Universities Assistance 6 Act of 1978 (25 U.S.C. 1808(b)(1)) is amended— 7 (1) by striking ‘‘of the funds available for allot- 8 ment by October 15 or no later than 14 days after 9 appropriations become available’’ and inserting ‘‘ of 10 the amounts appropriated for any fiscal year on or 11 before July 1 of that fiscal year’’; and 12 (2) by striking ‘‘January 1’’ and inserting 13 ‘‘September 30’’; 14 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 15 110(a) of the Tribally Controlled Colleges and Universities 16 Assistance Act of 1978 (25 U.S.C. 1810(a)) is amended— 17 (1) in paragraph (1)— 18 (A) by striking ‘‘$3,200,000 for fiscal year 19 2009 and’’; 20 (B) by striking ‘‘for each of the five suc- 21 ceeding fiscal years’’; and 22 (C) by inserting ‘‘from the amount made 23 available under section 3(a) for each fiscal 24 year’’ after ‘‘necessary’’; g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00538 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 539 1 (2) in paragraph (2), by striking ‘‘for fiscal 2 year 2009’’ and all that follows through the period 3 at the end and inserting ‘‘from the amount made 4 available under section 3(a) for each fiscal year.’’; 5 (3) in paragraph (3), by striking ‘‘fiscal year 6 2009’’ and all that follows through the period at the 7 end and inserting ‘‘from the amount made available 8 under section 3(a) for each fiscal year.’’; and 9 (4) in paragraph (4), by striking ‘‘2009’’ and 10 inserting ‘‘2019’’. 11 (g) RULES AND REGULATIONS.—The Tribally Con- 12 trolled Colleges and Universities Assistance Act of 1978 13 (25 U.S.C. 1801 et seq.) is amended by striking section 14 115 (25 U.S.C. 1815). 15 (h) REPEAL OF ENDOWMENT PROGRAM.— 16 (1) REPEAL.—Title III of the Tribally Con- 17 trolled Colleges and Universities Assistance Act of 18 1978 (25 U.S.C. 1831 et seq.) is repealed. 19 (2) TRANSITION.— 20 (A) IN to subpara- 21 graph (B), title III of the Tribally Controlled 22 Colleges and Universities Assistance Act of 23 1978 (25 U.S.C. 1831 et seq.), as such title 24 was in effect on the day before the date of the 25 enactment of this Act, shall apply with respect g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 GENERAL.—Subject 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00539 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 540 1 to any endowment fund established or funded 2 under such title before such date of enactment, 3 except that the Secretary of the Interior may 4 not make any grants or Federal capital con- 5 tributions under such title after such date. 6 (B) TERMINATION.—Subparagraph (A) 7 shall terminate on the date that is 20 years 8 after the date of the enactment of this Act. On 9 or after such date, a tribally controlled college 10 or university may use the corpus (including the 11 Federal and institutional capital contribution) 12 of any endowment fund described in such sub- 13 paragraph to pay any expenses relating to the 14 operation or academic programs of such college 15 or university. 16 17 (i) TRIBAL ECONOMIC DEVELOPMENT; AUTHORIZATION OF APPROPRIATIONS.—Section 403 of the Tribally 18 Controlled Colleges and Universities Assistance Act of 19 1978 (25 U.S.C. 1852) is amended by striking ‘‘for fiscal 20 year 2009’’ and all that follows through the period at the 21 end and inserting ‘‘from the amount made available under 22 section 3(a) for each fiscal year.’’. 23 24 (j) TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL INSTITUTIONS.—Section 504 of 25 the Tribally Controlled Colleges and Universities Assist- g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00540 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 541 1 ance Act of 1978 (25 U.S.C. 1864) is amended by striking 2 ‘‘for fiscal year 2009’’ and all that follows through the 3 period at the end and inserting ‘‘from the amount made 4 available under section 3(b) for each fiscal year.’’ 5 (k) CLERICAL AMENDMENTS.—The Tribally Con- 6 trolled Colleges and Universities Assistance Act of 1978 7 (25 U.S.C. 1801 et seq.), as amended by subsections (a) 8 through (j), is further amended— 9 (1) by striking ‘‘Bureau of Indian Affairs’’ each 10 place it appears and inserting ‘‘Bureau of Indian 11 Education’’; 12 (2) by striking ‘‘Navajo Community College 13 Act’’ each place it appears and inserting ‘‘Dine′ Col- 14 lege Act’’; 15 (3) by striking ‘‘colleges or universities’’ each 16 place it appears, including in headings, and inserting 17 ‘‘colleges and universities’’ and conforming the font 18 and typeface accordingly; and 19 (4) in section 109 (25 U.S.C. 1809), by redes- 20 ignating the second subsection (c) as subsection (d). 21 SEC. 912. DINE′ COLLEGE ACT. 22 (a) SHORT TITLE.—The first section of Public Law 23 92–189 is amended by striking ‘‘this Act may be cited as 24 the ‘Navajo Community College Act’ ’’ and inserting ‘‘this 25 Act may be cited as the ‘Dine′ College Act’ ’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00541 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X G:\CMTE\EW\15\ED\HEA\REA\HEAREA_001.XML 542 1 (b) REFERENCES.—Any reference to the Navajo 2 Community College Act in any law (other than this Act), 3 regulation, map, document, record, or other paper of the 4 United States shall be deemed to be a reference to the 5 Dine′ College Act. 6 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 7 5 of Public Law 92–189 is amended— 8 (1) in subsection (a)(1), by striking ‘‘for fiscal 9 years 2009 through 2014’’ and inserting ‘‘from the 10 amount made available under subsection (b)(1) for 11 each fiscal year’’; and 12 (2) in subsection (b)(1), by striking ‘‘such sums 13 as are necessary for fiscal years 2009 through 14 2014’’ and inserting ‘‘$13,600,000 for each of fiscal 15 years 2019 through 2024’’. g:\VHLC\120117\120117.006.xml December 1, 2017 (8:59 a.m.) VerDate 0ct 09 2002 08:59 Dec 01, 2017 Jkt 000000 (680541 26) PO 00000 Frm 00542 Fmt 6652 Sfmt 6201 C:\USERS\BJGALL~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\HEAREA~1.X