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H.R. 4508: 031’ College Act

The text of the bill below is as of Dec 1, 2017 (Introduced).


I

115th CONGRESS

1st Session

H. R. 4508

IN THE HOUSE OF REPRESENTATIVES

December 1, 2017

(for herself and Mr. Guthrie) introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To support students in completing an affordable postsecondary education that will prepare them to enter the workforce with the skills they need for lifelong success.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Promoting Real Opportunity, Success, and Prosperity through Education Reform Act or the PROSPER Act.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. References.

Sec. 3. General effective date.

Title I—General provisions

Part A—Definitions

Sec. 101. Definition of institution of higher education.

Sec. 102. Institutions outside the United States.

Sec. 103. Additional definitions.

Sec. 104. Regulatory relief.

Part B—Additional General Provisions

Sec. 111. Free speech protections.

Sec. 112. National Advisory Committee on Institutional Quality and Integrity.

Sec. 113. Repeal of certain reporting requirements.

Sec. 114. Programs on drug and alcohol abuse prevention.

Sec. 115. Campus access for religious groups.

Sec. 116. Secretarial prohibitions.

Sec. 117. Ensuring equal treatment by governmental entities.

Part C—Cost of Higher Education

Sec. 121. College Dashboard website.

Sec. 122. Net price calculators.

Sec. 123. Text book information.

Part D—Administrative Provisions for Delivery of Student Financial Assistance

Sec. 131. Performance-based organization for the delivery of Federal student financial assistance.

Sec. 132. Administrative data transparency.

Part E—Lender and Institution Requirements Relating to Education Loans

Sec. 141. Modification of preferred lender arrangements.

Part F—Addressing sexual assault

Sec. 151. Addressing sexual assault.

Title II—Expanding Access to In-Demand Apprenticeships

Sec. 201. Repeal.

Sec. 202. Grants for access to high-demand careers.

Title III—Institutional Aid

Sec. 301. Strengthening institutions.

Sec. 302. Strengthening historically Black colleges and universities.

Sec. 303. Historically Black college and university capital financing.

Sec. 304. Minority Science and Engineering Improvement Program.

Sec. 305. Strengthening historically Black colleges and universities and other minority-serving institutions.

Sec. 306. General provisions.

Title IV—STUDENT ASSISTANCE

Part A—Grants to Students in Attendance at Institutions of Higher Education

Sec. 401. Federal Pell Grants.

Sec. 402. Federal TRIO programs.

Sec. 403. Gaining early awareness and readiness for undergraduate programs.

Sec. 404. Special programs for students whose families are engaged in migrant and seasonal farmwork.

Sec. 405. Child care access means parents in school.

Sec. 406. Repeals.

Sec. 407. Sunset of TEACH grants.

Part B—Federal Family Education Loan Program

Sec. 421. Federal Direct Consolidation Loans.

Sec. 422. Loan rehabilitation.

Sec. 423. Loan forgiveness for teachers.

Sec. 424. Loan forgiveness for service in areas of national need.

Sec. 425. Loan repayment for civil legal assistance attorneys.

Sec. 426. Sunset of cohort default rate and other conforming changes.

Sec. 427. Closed school and other discharges.

Part C—Federal Work-Study Programs

Sec. 441. Purpose; authorization of appropriations.

Sec. 442. Allocation formula.

Sec. 443. Grants for Federal work-study programs.

Sec. 444. Flexible use of funds.

Sec. 445. Job location and development programs.

Sec. 446. Community service.

Sec. 447. Work colleges.

Part D—Federal Direct Student Loan Program

Sec. 451. Termination of Federal Direct Loan Program under part D and other conforming amendments.

Sec. 452. Borrower defenses.

Sec. 453. Administrative expenses.

Sec. 454. Loan cancellation for teachers.

Part E—Federal ONE Loans

Sec. 461. Wind-down of Federal Perkins Loan Program.

Sec. 462. Federal ONE Loan program.

Part F—Need Analysis

Sec. 471. Cost of attendance.

Sec. 472. Simplified needs test.

Sec. 473. Discretion of student financial aid administrators.

Sec. 474. Definitions of total income and assets.

Part G—General Provisions Relating to Student Assistance

Sec. 481. Definitions of academic year and eligible program.

Sec. 482. Programmatic loan repayment rates.

Sec. 483. Master calendar.

Sec. 484. FAFSA Simplification.

Sec. 485. Student eligibility.

Sec. 486. Statute of limitations.

Sec. 487. Institutional refunds.

Sec. 488. Information disseminated to prospective and enrolled students.

Sec. 489. Early awareness of financial aid eligibility.

Sec. 490. Distance education demonstration programs.

Sec. 491. Contents of program participation agreements.

Sec. 492. Regulatory relief and improvement.

Sec. 493. Transfer of allotments.

Sec. 494. Administrative expenses.

Sec. 494A. Repeal of advisory committee.

Sec. 494B. Regional meetings and negotiated rulemaking.

Sec. 494C. Deferral of loan repayment following active duty.

Sec. 494D. Contracts; matching program.

Part H—Program Integrity

Sec. 495. Repeal of and prohibition on State authorization regulations.

Sec. 496. Recognition of accrediting agency or association.

Sec. 497. Eligibility and certification procedures.

Title V—Developing Institutions

Sec. 501. Hispanic-serving institutions.

Sec. 502. Promoting postbaccalaureate opportunities for Hispanic Americans.

Sec. 503. General provisions.

Title VI—International Education Programs

Sec. 601. International and foreign language studies.

Sec. 602. Business and international education programs.

Sec. 603. Repeal of assistance program for Institute for International Public Policy.

Sec. 604. General provisions.

Title VII—Graduate and postsecondary improvement programs

Sec. 701. Graduate education programs.

Sec. 702. Repeal of Fund for the Improvement of Postsecondary Education.

Sec. 703. Programs for students with disabilities.

Sec. 704. Repeal of college access challenge grant program.

Title VIII—Other Repeals

Sec. 801. Repeal of additional programs.

Title IX—Amendments to other laws

Part A—Education of the Deaf Act of 1986

Sec. 901. Education of the Deaf Act of 1986.

Part B—Tribally Controlled Colleges and Universities Assistance Act of 1978; Dine´ College Act

Sec. 911. Tribally Controlled Colleges and Universities Assistance Act of 1978.

Sec. 912. Dine´ College Act.

2.

References

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

3.

General effective date

Except as otherwise provided in this Act or the amendments made by this Act, this Act and the amendments made by this Act shall take effect on the date of enactment of this Act.

I

General provisions

A

Definitions

101.

Definition of institution of higher education

Part A of title I (20 U.S.C. 1001 et seq.) is amended by striking section 101 (20 U.S.C. 1001) and inserting the following:

101.

Definition of institution of higher education

(a)

Institution of higher education

For purposes of this Act, the term institution of higher education means an educational institution in any State that—

(1)

admits as regular students only persons who—

(A)

have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, or who meet the requirements of section 484(d);

(B)

are beyond the age of compulsory school attendance in the State in which the institution is located; or

(C)

will be dually or concurrently enrolled in the institution and a secondary school;

(2)

is legally authorized by the State in which it maintains a physical location to provide a program of education beyond secondary education;

(3)
(A)

is accredited by a nationally recognized accrediting agency or association; or

(B)

if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time; and

(4)

provides—

(A)

an educational program for which the institution awards a bachelor’s degree, graduate degree, or professional degree;

(B)

not less than a 2-year educational program which is acceptable for full credit towards a bachelor’s degree; or

(C)

a non-degree program leading to a recognized educational credential that meets the definition of an eligible program under section 481(b).

(b)

Additional limitations

(1)

Proprietary institutions of higher education

(A)

Length of existence

A proprietary institution shall not be considered an institution of higher education unless such institution has been in existence for at least 2 years.

(B)

Institutional ineligibility for minority serving institution programs

A proprietary institution shall not be considered an institution of higher education for the purposes of any program under title III or V.

(2)

Postsecondary vocational institutions

A nonprofit or public institution that offers only non-degree programs described in subsection (a)(4)(C) shall not be considered an institution of higher education unless such institution has been in existence for at least 2 years.

(3)

Limitations based on management

An institution shall not be considered an institution of higher education if—

(A)

the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy; or

(B)

the institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of Federal funds, or has been judicially determined to have committed a crime involving the acquisition, use, or expenditure involving Federal funds.

(4)

Limitation on course of study or enrollment

An institution shall not be considered an institution of higher education if such institution—

(A)

offers more than 50 percent of such institution’s courses by correspondence education, unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006;

(B)

enrolls 50 percent or more of the institution’s students in correspondence education courses, unless the institution is an institution that meets the definition in section 3(3)(C) of such Act, except that the Secretary, at the request of the institution, may waive the applicability of this subparagraph to the institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively;

(C)

has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for an institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate’s degree or a postsecondary certificate, or a bachelor’s degree, respectively; or

(D)

has a student enrollment in which more than 50 percent of the students either do not have a secondary school diploma or its recognized equivalent, or do not meet the requirements of section 484(d), and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards an associate’s degree or a bachelor’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if an institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent or do not meet the requirements of section 484(d).

(c)

List of accrediting agencies

For purposes of this section, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part H of title IV, to be reliable authority as to the quality of the education offered.

(d)

Certification

The Secretary shall certify, for the purposes of participation in title IV, an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part H of title IV.

(e)

Loss of eligibility

An institution of higher education shall not be considered to meet the definition of an institution of higher education for the purposes of participation in title IV if such institution is removed from eligibility for funds under title IV as a result of an action pursuant to part H of title IV.

(f)

Rule of construction

Nothing in subsection (a)(2) relating to State authorization shall be construed to—

(1)

impede or preempt State laws, regulations, or requirements on how States authorize out-of-State institutions of higher education; or

(2)

limit, impede, or preclude a State’s ability to collaborate or participate in a reciprocity agreement to permit an institution within such State to meet any other State’s authorization requirements for out-of-State institutions.

.

102.

Institutions outside the United States

Part A of title I (20 U.S.C. 1001 et seq.) is further amended by striking section 102 (20 U.S.C. 1002) and inserting the following:

102.

Institutions outside the United States

(a)

Institutions outside the United States

(1)

In general

Only for purposes of part D or E of title IV, the term institution of higher education includes an institution outside the United States (referred to in this part as a foreign institution) that is comparable to an institution of higher education as defined in section 101 and has been approved by the Secretary for purposes of part D or E of title IV, consistent with the requirements of section 452(d).

(2)

Qualifications

Only for the purposes of students receiving aid under title IV, an institution of higher education may not qualify as a foreign institution under paragraph (1), unless such institution—

(A)

is legally authorized to provide an educational program beyond secondary education by the education ministry (or comparable agency) of the country in which the institution is located;

(B)

is not located in a State;

(C)

except as provided with respect to clinical training offered by the institution under 600.55(h)(1), section 600.56(b), or section 600.57(a)(2) of title 34, Code of Federal Regulations (as in effect pursuant to subsection (b))—

(i)

does not offer any portion of an educational program in the United States to students who are citizens of the United States;

(ii)

has no written arrangements with an institution or organization located in the United States under which students enrolling at the foreign institution would take courses from an institution located in the United States; and

(iii)

does not allow students to enroll in any course offered by the foreign institution in the United States, including research, work, internship, externship, or special studies within the United States, except that independent research done by an individual student in the United States for not more than one academic year is permitted, if the research is conducted during the dissertation phase of a doctoral program under the guidance of faculty and the research is performed at a facility in the United States;

(D)

awards degrees, certificates, or other recognized educational credentials in accordance with section 600.54(e) of title 34, Code of Federal Regulations (as in effect pursuant to subsection (b)) that are officially recognized by the country in which the institution is located; and

(E)

meets the applicable requirements of subsection (b).

(3)

Institutions with locations In and outside the United States

In a case of an institution of higher education consisting of two or more locations offering all or part of an educational program that are directly or indirectly under common ownership and that enrolls students both within a State and outside the United States, and the number of students who would be eligible to receive funds under title IV attending locations of such institution outside the United States, is at least twice the number of students enrolled within a State—

(A)

the locations outside the United States shall apply to participate as one or more foreign institutions and shall meet the requirements of paragraph (1) of this definition, and the other requirements of this part; and

(B)

the locations within a State shall be treated as an institution of higher education under section 101.

(b)

Treatment of certain regulations

(1)

Force and effect

(A)

In general

The provisions of title 34, Code of Federal Regulations, referred to in subparagraph (B), as such provisions were in effect on the day before the date of the enactment of the PROSPER Act, shall have the force and effect of enacted law until changed by such law and are deemed to be incorporated in this subsection as though set forth fully in this subsection.

(B)

Applicable provisions

The provisions of title 34, Code of Federal Regulations, referred to in this subparagraph are the following:

(i)

Subject to paragraph (2)(A), section 600.41(e)(3).

(ii)

Subject to paragraph (2)(B), section 600.52.

(iii)

Subject to paragraph (2)(C), section 600.54, except that paragraph (1) of subsection (a) of such section shall have no force or effect.

(iv)

Subject to subparagraphs (D) and (E) of paragraph (2), section 600.55, except that paragraph (4) of subsection (f) of such section shall have no force or effect.

(v)

Section 600.56.

(vi)

Subject to paragraph (2)(F), section 600.57.

(vii)

Subject to subparagraphs (G) and (H) of paragraph (2), section 668.23(h), except that clause (iii) of paragraph (1) of such section shall have no force or effect.

(viii)

Section 668.5.

(C)

Application to Federal ONE Loans

With respect to the provisions of title 34, Code of Federal Regulations, referred to subparagraph (B), as modified by paragraph (2) any reference to a loan made under part D of title IV shall also be treated as a reference to a loan made under part E of title IV.

(2)

Modifications

The following shall apply to the provisions of title 34, Code of Federal Regulations, referred to in paragraph (1)(B):

(A)

Notwithstanding section 600.41(e)(3) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), if the basis for the loss of eligibility of a foreign graduate medical school to participate in programs under title IV is one or more annual pass rates on the United States Medical Licensing Examination below the threshold required in subparagraph (D) the sole issue is whether the aggregate pass rate for the preceding calendar year fell below that threshold. For purposes of the preceding sentence, in the case of a foreign graduate medical school that opted to have the Educational Commission for Foreign Medical Graduates calculate and provide the pass rates directly to the Secretary for the preceding calendar year as permitted under section 600.55(d)(2) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), in lieu of the foreign graduate medical school providing pass rate data to the Secretary under section 600.55(d)(1)(iii) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), the Educational Commission for Foreign Medical Graduates’ calculations of the school's rates are conclusive; and the presiding official has no authority to consider challenges to the computation of the rate or rates by the Educational Commission for Foreign Medical Graduates.

(B)

Notwithstanding section 600.52 of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), in this Act, the term foreign institution means an institution described in subsection (a).

(C)

Notwithstanding section 600.54(c) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), to be eligible to participate in programs under title IV, foreign institution may not enter into a written arrangement under which an institution or organizations that is not eligible to participate in programs under title IV provides more than 25 percent of the program of study for one or more of the eligible foreign institution's programs.

(D)

Notwithstanding section 600.55(f)(1)(ii) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), for a foreign graduate medical school outside of Canada, for Step 1, Step 2–CS, and Step 2–CK, or the successor examinations, of the United States Medical Licensing Examination administered by the Educational Commission for Foreign Medical Graduate, at least 75 percent of the school's students and graduates who receive or have received title IV funds in order to attend that school, and who completed the final of these three steps of the examination in the year preceding the year for which any of the school's students seeks a loan under title IV shall have received an aggregate passing score on the exam as a whole; or except as provided in section 600.55(f)(2) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), for no more than two consecutive years, at least 70 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (who receive or have received title IV funds in order to attend that school) taking the United States Medical Licensing Examination exams in the year preceding the year for which any of the school’s students seeks a loan under title IV shall have received an aggregate passing score on the exam as a whole.

(E)

Notwithstanding 600.55(h)(2) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), not more than 25 percent of the graduate medical educational program offered to United States students, other than the clinical training portion of the program, may be located outside of the country in which the main campus of the foreign graduate medical school is located.

(F)

Notwithstanding section 600.57(a)(5) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), a nursing school shall reimburse the Secretary for the cost of any loan defaults for current and former students during the previous fiscal year.

(G)

Notwithstanding section 668.23(h)(1)(ii), of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), a foreign institution that received $500,000 or more in funds under title IV during its most recently completed fiscal year shall submit, in English, for each most recently completed fiscal year in which it received such funds, audited financial statements prepared in accordance with generally accepted accounting principles of the institution's home country provided that such accounting principles are comparable to the International Financial Reporting Standards.

(H)

Notwithstanding section 668.23(h)(1)(ii), of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)), only in a case in which the accounting principles of an institution’s home country are not comparable to International Financial Reporting Standards shall the institution be required to submit corresponding audited financial statements that meet the requirements of section 668.23(d) of title 34, Code of Federal Regulations (as in effect pursuant to paragraph (1)).

(c)

Special rules

(1)

In general

A foreign graduate medical school at which student test passage rates are below the minimum requirements set forth in subsection (b)(2)(D) for each of the two most recent calendar years for which data are available shall not be eligible to participate in programs under part D or E of title IV in the fiscal year subsequent to that consecutive two year period and such institution shall regain eligibility to participate in programs under such part only after demonstrating compliance with requirements under section 600.55 of title 34, Code of Federal Regulations (as in effect pursuant to subsection (b)) for one full calendar year subsequent to the fiscal year the institution became ineligible unless, within 30 days of receiving notification from the Secretary of the loss of eligibility under this paragraph, the institution appeals the loss of its eligibility to the Secretary. The Secretary shall issue a decision on any such appeal within 45 days after its submission. Such decision may permit the institution to continue to participate in programs under part D or E of title IV, if—

(A)

the institution demonstrates to the satisfaction of the Secretary that the test passage rates on which the Secretary has relied are not accurate, and that the recalculation of such rates would result in rates that exceed the required minimum for any of these two calendar years; or

(B)

there are, in the judgement of the Secretary, mitigating circumstances that would make the application of this paragraph inequitable.

(2)

Student eligibility

If, pursuant to this subsection, a foreign graduate medical school loses eligibility to participate in the programs under part D or E of title IV, then a student at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under such part while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.

(3)

Treatment of clinical training programs

(A)

In general

Clinical training programs operated by a foreign graduate medical school with an accredited hospital or clinic in the United States or at an institution in Canada accredited by the Liaison Committee on Medical Education shall be deemed to be approved and shall not require the prior approval of the Secretary.

(B)

On-site evaluations

Any part of a clinical training program operated by a foreign graduate medical school located in a foreign country other than the country in which the main campus is located, in the United States, or at an institution in Canada accredited by the Liaison Committee on Medical Education, shall not require an on-site evaluation or specific approval by the institution’s medical accrediting agency if the location is a teaching hospital accredited by and located within a foreign country approved by the National Committee on Foreign Medical Education and Accreditation.

(d)

Failure To release information

An institution outside the United States that does not provide to the Secretary such information as may be required by this section shall be ineligible to participate in the loan program under part D or E of title IV.

(e)

Online education

Notwithstanding section 481(b)(2), an eligible program described in section 600.54 of title 34, Code of Federal Regulations (as in effect pursuant to subsection (b)) may not offer more than 50 percent of courses through telecommunications.

.

103.

Additional definitions

(a)

Diploma mill

Section 103(5)(B) (20 U.S.C. 1003(5)(B)) is amended by striking section 102 and inserting section 101 or 102.

(b)

Correspondence education

Section 103(7) (20 U.S.C. 1003(7)) is amended to read as follows:

(7)

Correspondence Education

The term correspondence education means education that is provided by an institution of higher education under which—

(A)

the institution provides instructional materials (including examinations on the materials) by mail or electronic transmission to students who are separated from the instructor; and

(B)

interaction between the institution and the student is limited and the academic instruction by faculty is not regular and substantive, as assessed by the institution’s accrediting agency or association under section 496.

.

(c)

Early childhood education program

Section 103(8) (20 U.S.C. 1003(8)) is amended to read as follows:

(8)

Early childhood education program

The term early childhood education program means a program—

(A)

that serves children of a range of ages from birth through age five that addresses the children’s cognitive (including language, early literacy, and early mathematics), social, emotional, and physical development; and

(B)

that is—

(i)

a Head Start program or an Early Head Start program carried out under the Head Start Act (42 U.S.C. 9831 et seq.), including a migrant or seasonal Head Start program, an Indian Head Start program, or a Head Start program or an Early Head Start program that also receives State funding;

(ii)

a State licensed or regulated child care program;

(iii)

a State-funded prekindergarten or child care program;

(iv)

a program authorized under section 619 of the Individuals with Disabilities Education Act or part C of such Act; or

(v)

a program operated by a local educational agency.

.

(d)

Nonprofit

Section 103(13) (20 U.S.C. 1003(13)) is amended to read as follows:

(13)

Nonprofit

(A)

The term nonprofit, when used with respect to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

(B)

The term nonprofit, when used with respect to foreign institution means—

(i)

an institution that is owned and operated only by one or more nonprofit corporations or associations; and

(ii)
(I)

if a recognized tax authority of the institution’s home country is recognized by the Secretary for purposes of making determinations of an institution’s nonprofit status for purposes of title IV, the institution is determined by that tax authority to be a nonprofit educational institution; or

(II)

if no recognized tax authority of the institution’s home country is recognized by the Secretary for purposes of making determinations of an institution’s nonprofit status for purposes of title IV, the foreign institution demonstrates to the satisfaction of the Secretary that it is a nonprofit educational institution.

.

(e)

Competency-Based education; Competency-based education program

Section 103 (20 U.S.C. 1003) is amended by adding at the end the following:

(25)

Competency-based education; competency-based education program

(A)

Competency-based education

Except as otherwise provided, the term competency-based education means education that—

(i)

measures academic progress and attainment—

(I)

by direct assessment of a student’s level of mastery of competencies;

(II)

by expressing a student’s level of mastery of competencies in terms of equivalent credit or clock hours; or

(III)

by a combination of the methods described in subclauses (I) or (II) and credit or clock hours; and

(ii)

provides the educational content, activities, and resources, including substantive instructional interaction, including by faculty, and regular support by the institution, necessary to enable students to learn or develop what is required to demonstrate and attain mastery of such competencies, as assessed by the accrediting agency or association of the institution of higher education.

(B)

Competency-based education program

Except as otherwise provided, the term competency-based education program means a postsecondary program offered by an institution of higher education that—

(i)

provides competency-based education, which upon a student’s demonstration or mastery of a set of competencies identified and required by the institution, leads to or results in the award of a certificate, degree, or other recognized educational credential;

(ii)

has a method to differentiate between knowledge that a student acquired prior to enrollment in the competency-based education program and knowledge that the student acquired as a result of enrollment in such program; and

(iii)

is organized in such a manner that an institution can determine, based on the method of measurement selected by the institution under subparagraph (A)(i), what constitutes a full-time, three-quarter time, half-time, and less than half-time workload for the purposes of awarding and administering assistance under title IV of this Act, or assistance provided under another provision of Federal law to attend an institution of higher education.

(C)

Competency defined

In this paragraph, the term competency means the knowledge, skill, or characteristic demonstrated by a student in a subject area.

.

(f)

Pay for success initiative

Section 103 (20 U.S.C. 1003) is amended by adding at the end the following:

(26)

Pay for success initiative

The term pay for success initiative has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

.

(g)

Evidence-based

Section 103 (20 U.S.C. 1003) is amended by adding at the end the following:

(27)

Evidence-based

The term evidence-based has the meaning given the term in section 8101(21)(A) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801(21)(A)), except that such term shall also apply to institutions of higher education.

.

104.

Regulatory relief

(a)

Regulations repealed

(1)

Repeal

The following regulations (including any supplement or revision to such regulations) are repealed and shall have no legal effect:

(A)

Definition of credit hour

The definition of the term credit hour in section 600.2 of title 34, Code of Federal Regulations, as added by the final regulations published by the Department of Education in the Federal Register on October 29, 2010 (75 Fed. Reg. 66946).

(B)

Gainful employment

Sections 600.10(c), 600.20(d), 668.401 through 668.415, 668.6, and 668.7, of title 34, Code of Federal Regulations, as added or amended by the final regulations published by the Department of Education in the Federal Register on October 31, 2014 (79 Fed. Reg. 64889 et seq.).

(C)

Borrower defense

Sections 668.41, 668.90, 668.93, 668.171, 668.175, 674.33, 682.211, 682.402(d), 682.405, 682.410, 685.200, 685.205, 685.206, 685.212(k), 685.214, 685.215, 685.222, appendix A to subpart B of part 685, 685.300, 685.308, of title 34, Code of Federal Regulations, as added or amended by the final regulations published by the Department of Education in the Federal Register on November 1, 2016 (81 Fed. Reg. 75926 et seq.).

(2)

Effect of repeal

To the extent that regulations repealed—

(A)

by subparagraph (A) or subparagraph (B) of paragraph (1) amended regulations that were in effect on June 30, 2011, the provisions of the regulations that were in effect on June 30, 2011, and were so amended are restored and revived as if the regulations repealed by such subparagraph had not taken effect; and

(B)

by paragraph (1)(C) amended regulations that were in effect on October 31, 2016, the provisions of the regulations that were in effect on October 31, 2016, and were so amended are restored and revived as if the regulations repealed by paragraph (1)(C) had not taken effect.

(b)

Certain regulations and other actions prohibited

(1)

Gainful employment

The Secretary of Education shall not, on or after the date of enactment of this Act, promulgate or enforce any regulation or rule with respect to the definition or application of the term gainful employment for any purpose under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

(2)

Credit hour

The Secretary of Education shall not, on or after the date of enactment of this Act, promulgate or enforce any regulation or rule with respect to the definition of the term credit hour for any purpose under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

(3)

Postsecondary institution ratings system

The Secretary of Education shall not carry out, develop, refine, promulgate, publish, implement, administer, or enforce a postsecondary institution ratings system or any other performance system to rate institutions of higher education (as defined in section 101 or 102 of the Higher Education Act of 1965 (20 U.S.C. 1001; 1002)).

B

Additional General Provisions

111.

Free speech protections

Section 112 (20 U.S.C. 1011a) is amended—

(1)

in subsection (a)—

(A)

by redesignating paragraph (2) as paragraph (3); and

(B)

by inserting after paragraph (1) the following:

(2)

It is the sense of Congress that—

(A)

free speech zones and restrictive speech codes are inherently at odds with the freedom of speech guaranteed by the First Amendment of the Constitution; and

(B)

no public institution directly or indirectly receiving financial assistance under this Act should restrict the speech of such institution’s students through such zones or codes.

;

(2)

by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and

(3)

by inserting after subsection (a), the following:

(b)

Disclosure of Free Speech Policies

No institution of higher education shall be eligible to receive funds under this Act, including participation in any program under title IV, unless the institution certifies to the Secretary that the institution has annually disclosed to current and prospective students any policies held by the institutions related to protected speech on campus, including policies limiting where and when such speech may occur.

.

112.

National Advisory Committee on Institutional Quality and Integrity

Section 114 (20 U.S.C. 1011c) is amended—

(1)

by striking section 102 each place it appears and inserting section 101;

(2)

in subsection (b)—

(A)

in paragraph (3), by striking Except as provided in paragraph (5), the term and inserting The term;

(B)

by striking paragraph (5) and inserting the following:

(5)

Secretarial appointees

The Secretary may remove any member who was appointed under paragraph (1)(A) by a predecessor of the Secretary and may fill the vacancy created by such removal in accordance with paragraphs (3) and (4).

.

(3)

in subsection (c)—

(A)

in paragraph (2), by adding and at the end;

(B)

in paragraph (3) by striking the semicolon at the end an inserting a period; and

(C)

by striking paragraphs (4) through (6);

(4)

in subsection (e)(2)(D) by striking , including any additional functions established by the Secretary through regulation; and

(5)

in subsection (f), by striking September 30, 2017 and inserting September 30, 2024.

113.

Repeal of certain reporting requirements

(a)

Repeals

The following provisions of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) are repealed:

(1)

Section 117 (20 U.S.C. 1011f).

(2)

Section 119 (20 U.S.C. 1011h).

(b)

Conforming amendments

(1)

section 118 is redesignated as section 117;

(2)

sections 120, 121, 122, and 123 are redesignated as sections 118, 119, 120, and 121, respectively; and

(3)

section 485(f)(1)(H) (20 U.S.C. 1092(f)(1)(H)) is amended by striking section 120 and inserting section 118.

114.

Programs on drug and alcohol abuse prevention

Section 118 (as so redesignated) is amended to read as follows:

118.

Drug and alcohol abuse prevention

(a)

Required programs

Each institution of higher education participating in any program under this Act shall adopt and implement a program to prevent the use of illicit drugs and the abuse of alcohol by students and employees that, at a minimum, includes the annual distribution to each student and employee of—

(1)

institutional standards of conduct and sanctions that clearly prohibit and address the unlawful possession, use, or distribution of illicit drugs and alcohol by students and employees; and

(2)

the description of any drug or alcohol counseling, treatment, rehabilitation, or re-entry programs that are available to students or employees.

(b)

Information availability

Each institution of higher education described in subsection (a) shall, upon request, make available to the Secretary and to the public a copy of the institutional standards described under subsection (a)(1) and information regarding any programs described in subsection (a)(2).

.

115.

Campus access for religious groups

Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 114 of this part) is amended by adding at the end the following:

122.

Campus access for religious groups

None of the funds made available under this Act may be provided to any public institution of higher education that denies to a religious student organization any right, benefit, or privilege that is generally afforded to other student organizations at the institution (including full access to the facilities of the institution and official recognition of the organization by the institution) because of the religious beliefs, practices, speech, membership standards, or standards of conduct of the religious student organization.

.

116.

Secretarial prohibitions

Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 115 of this part) is amended by adding at the end the following:

123.

Secretarial prohibitions

(a)

In general

Nothing in this Act shall be construed to authorize or permit the Secretary to promulgate any rule or regulation that exceeds the scope of the explicit authority granted to the Secretary under this Act.

(b)

Definitions

The Secretary shall not define any term that is used in this Act in a manner that is inconsistent with the scope of this Act, including through regulation or guidance.

(c)

Requirements

The Secretary shall not impose, on an institution or State as a condition of participation in any program under this Act, any requirement that exceeds the scope of the requirements explicitly set forth in this Act for such program.

.

117.

Ensuring equal treatment by governmental entities

Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 111 through 116 of this part) is further amended by adding at the end the following:

124.

Ensuring equal treatment by governmental entities

(a)

In general

Notwithstanding any other provision of law, no government entity shall take any adverse action against an institution of higher education that receives funding under title IV, if such adverse action—

(1)
(A)

is being taken by a government entity that—

(i)

is a department, agency, or instrumentality of the Federal Government; or

(ii)

receives Federal funds; or

(B)

would affect commerce with foreign nations, among the several States, or with Indian Tribes; and

(2)

has the effect of prohibiting or penalizing the institution for acts or omissions by the institution that are in furtherance of its religious mission or are related to the religious affiliation of the institution.

(b)

Assertion by institution

An actual or threatened violation of subsection (a) may be asserted by an institution of higher education that receives funding under title IV as a claim or defense in a proceeding before any court. The court shall grant any appropriate equitable relief, including injunctive or declaratory relief.

(c)

Rule of construction

Nothing in this section shall be construed to alter or amend—

(1)

title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.);

(2)

section 182 of the Elementary and Secondary Education Amendments Act of 1966 (42 U.S.C. 2000d–5); or

(3)

section 2 of the Elementary and Secondary Education Amendments Act of 1969 (42 U.S.C. 2000d–6)

(d)

Definitions

In this section:

(1)

Adverse action

The term adverse action includes, with respect to an institution of higher education or the past, current, or prospective students of such institution—

(A)

the denial or threat of denial of funding, including grants, scholarships, or loans;

(B)

the denial or threat of denial of access to facilities or programs;

(C)

the withholding or threat of withholding of any licenses, permits, certifications, accreditations, contracts, cooperative agreements, grants, guarantees, tax-exempt status, or exemptions; or

(D)

any other penalty or denial, or threat of such other penalty or denial, of an otherwise available benefit.

(2)

Government entity

The term government entity means—

(A)

any department, agency, or instrumentality of the Federal Government;

(B)

a State or political subdivision of a State, or any agency or instrumentality thereof; and

(C)

any interstate or other inter-governmental entity.

(3)

Institution of higher education

The term institution of higher education has the meaning given the term in section 101 or 102.

(4)

Religious mission

The term religious mission includes an institution of higher education’s religious tenets, beliefs, or teachings, and any policies or decisions related to such tenets, beliefs, or teachings (including any policies or decisions concerning housing, employment, curriculum, self-governance, or student admission, continuing enrollment, or graduation).

.

C

Cost of Higher Education

121.

College Dashboard website

(a)

Establishment

Section 132 (20 U.S.C. 1015a) is amended—

(1)

in subsection (a)—

(A)

by striking paragraph (1) and inserting the following new paragraph:

(1)

College Dashboard website

The term College Dashboard website means the College Dashboard website required under subsection (d).

.

(B)

in paragraph (2), by striking first-time,;

(C)

in paragraph (3), in the matter preceding subparagraph (A), by striking first-time,; and

(D)

in paragraph (4), by striking first-time,;

(2)

in subsection (b)—

(A)

in paragraph (1), by striking first-time,; and

(B)

in paragraph (2), by striking first-time,;

(3)

by striking subsections (c) through (g), (j), and (l);

(4)

by redesignating subsections (h), (i), and (k) as subsections (c), (d), and (e), respectively; and

(5)

by striking subsection (d) (as so redesignated) and inserting the following new subsection:

(d)

Consumer information

(1)

Availability of title IV institution information

The Secretary shall develop and make publicly available a website to be known as the College Dashboard website in accordance with this section and prominently display on such website, in simple, understandable, and unbiased terms for the most recent academic year for which satisfactory data are available, the following information with respect to each institution of higher education that participates in a program under title IV:

(A)

A link to the website of the institution.

(B)

An identification of the type of institution as one of the following:

(i)

A four-year public institution of higher education.

(ii)

A four-year private, nonprofit institution of higher education.

(iii)

A four-year private, proprietary institution of higher education.

(iv)

A two-year public institution of higher education.

(v)

A two-year private, nonprofit institution of higher education.

(vi)

A two-year private, proprietary institution of higher education.

(vii)

A less than two-year public institution of higher education.

(viii)

A less than two-year private, nonprofit institution of higher education.

(ix)

A less than two-year private, proprietary institution of higher education.

(C)

The number of students enrolled at the institution—

(i)

as undergraduate students, if applicable; and

(ii)

as graduate students, if applicable.

(D)

The student-faculty ratio.

(E)

The percentage of degree-seeking or certificate-seeking undergraduate students enrolled at the institution who obtain a degree or certificate within—

(i)

100 percent of the normal time for completion of, or graduation from, the program in which the student is enrolled;

(ii)

150 percent of the normal time for completion of, or graduation from, the program in which the student is enrolled; and

(iii)

200 percent of the normal time for completion of, or graduation from, the program in which the student is enrolled.

(F)
(i)

The average net price per year for undergraduate students enrolled at the institution who received Federal student financial aid under title IV based on dependency status and an income category selected by the user of the College Dashboard website from a list containing the following income categories:

(I)

$0 to $30,000.

(II)

$30,001 to $48,000.

(III)

$48,001 to $75,000.

(IV)

$75,001 to $110,000.

(V)

$110, 001 to $150,000.

(VI)

Over $150,000.

(ii)

A link to the net price calculator for such institution.

(G)

The percentage of undergraduate and graduate students who obtained a certificate or degree from the institution who borrowed Federal student loans—

(i)

set forth separately for each educational program offered by the institution; and

(ii)

made available in a format that allows a user of the College Dashboard website to view such percentage by selecting from a list of such educational programs.

(H)

The average Federal student loan debt incurred by a student who obtained a certificate or degree in an educational program from the institution and who borrowed Federal student loans in the course of obtaining such certificate or degree—

(i)

set forth separately for each educational program offered by the institution; and

(ii)

made available in a format that allows a user of the College Dashboard website to view such student loan debt information by selecting from a list of such educational programs.

(I)

The median earnings of students who obtained a certificate or degree in an educational program from the institution and who received Federal student financial aid under title IV in the course of obtaining such certificate or degree—

(i)

in the fifth and tenth years following the year in which the students obtained such certificate or degree;

(ii)

set forth separately by educational program; and

(iii)

made available in a format that allows a user of the College Dashboard website to view such median earnings information by selecting from a list of such educational programs.

(J)

A link to the webpage of the institution containing campus safety data with respect to such institution.

(2)

Additional information

The Secretary shall publish on websites that are linked to through the College Dashboard website, for the most recent academic year for which satisfactory data is available, the following information with respect to each institution of higher education that participates in a program under title IV:

(A)

Enrollment

The following enrollment information:

(i)

The percentages of male and female undergraduate students enrolled at the institution.

(ii)

The percentages of undergraduate students enrolled at the institution—

(I)

full-time; and

(II)

less than full-time.

(iii)

In the case of an institution other than an institution that provides all courses and programs through online education, of the undergraduate students enrolled at the institution—

(I)

the percentage of such students who are residents of the State in which the institution is located;

(II)

the percentage of such students who are not residents of such State; and

(III)

the percentage of such students who are international students.

(iv)

The percentages of undergraduate students enrolled at the institution, disaggregated by—

(I)

race and ethnic background;

(II)

classification as a student with a disability;

(III)

recipients of a Federal Pell Grant;

(IV)

recipients of assistance under a tuition assistance program conducted by the Department of Defense under section 1784a or 2007 of title 10, United States Code, or other authorities available to the Department of Defense or veterans’ education benefits (as defined in section 480); and

(V)

recipients of a Federal student loan.

(B)

Completion

The information required under paragraph (1)(E), disaggregated by—

(i)

recipients of a Federal Pell Grant;

(ii)

race and ethnic background;

(iii)

classification as a student with a disability;

(iv)

recipients of assistance under a tuition assistance program conducted by the Department of Defense under section 1784a or 2007 of title 10, United States Code, or other authorities available to the Department of Defense or veterans’ education benefits (as defined in section 480); and

(v)

recipients of a Federal student loan.

(C)

Costs

The following cost information:

(i)

The cost of attendance for full-time undergraduate students enrolled in the institution who live on campus.

(ii)

The cost of attendance for full-time undergraduate students enrolled in the institution who live off campus.

(iii)

The cost of tuition and fees for full-time undergraduate students enrolled in the institution.

(iv)

The cost of tuition and fees per credit hour or credit hour equivalency for undergraduate students enrolled in the institution less than full time.

(v)

In the case of a public institution of higher education (other than an institution described in clause (vi)) and notwithstanding subsection (b)(1), the costs described in clauses (i) and (ii) for—

(I)

full-time students enrolled in the institution who are residents of the State in which the institution is located; and

(II)

full-time students enrolled in the institution who are not residents of such State.

(vi)

In the case of a public institution of higher education that offers different tuition rates for students who are residents of a geographic subdivision smaller than a State and students not located in such geographic subdivision and notwithstanding subsection (b)(1), the costs described in clauses (i) and (ii) for—

(I)

full-time students enrolled at the institution who are residents of such geographic subdivision;

(II)

full-time students enrolled at the institution who are residents of the State in which the institution is located but not residents of such geographic subdivision; and

(III)

full-time students enrolled at the institution who are not residents of such State.

(D)

Financial aid

The following information with respect to financial aid:

(i)

The average annual grant amount (including Federal, State, and institutional aid) awarded to an undergraduate student enrolled at the institution who receives grant aid, and the percentage of undergraduate students receiving such aid.

(ii)

The percentage of undergraduate students enrolled at the institution receiving Federal, State, and institutional grants, student loans, and any other type of student financial assistance known by the institution, provided publicly or through the institution, such as Federal work-study funds.

(iii)

The loan repayment rate (as defined in section 481B) for each educational program at such institution.

(3)

Other data matters

(A)

Completion data

The Commissioner of Education Statistics shall ensure that the information required under paragraph (1)(E) includes information with respect to all students at an institution, including students other than first-time, full-time students and students who transfer to another institution, in a manner that the Commissioner considers appropriate.

(B)

Adjustment of income categories

The Secretary may annually adjust the range of each of the income categories described in paragraph (1)(F) to account for a change in the Consumer Price Index for All Urban Consumers as determined by the Bureau of Labor Statistics if the Secretary determines an adjustment is necessary.

(4)

Institutional comparison

The Secretary shall include on the College Dashboard website a method for users to easily compare the information required under paragraphs (1) and (2) between institutions.

(5)

Updates

(A)

Data

The Secretary shall update the College Dashboard website not less than annually.

(B)

Technology and format

The Secretary shall regularly assess the format and technology of the College Dashboard website and make any changes or updates that the Secretary considers appropriate.

(6)

Consumer testing

(A)

In general

In developing and maintaining the College Dashboard website, the Secretary, in consultation with appropriate departments and agencies of the Federal Government, shall conduct consumer testing with appropriate persons, including current and prospective college students, family members of such students, institutions of higher education, and experts, to ensure that the College Dashboard website is usable and easily understandable and provides useful and relevant information to students and families.

(B)

Recommendations for changes

The Secretary shall submit to the authorizing committees any recommendations that the Secretary considers appropriate for changing the information required to be provided on the College Dashboard website under paragraphs (1) and (2) based on the results of the consumer testing conducted under subparagraph (A).

(7)

Provision of appropriate links to prospective students after submission of FAFSA

The Secretary shall provide to each student who submits a Free Application for Federal Student Aid described in section 483 a link to the webpage of the College Dashboard website that contains the information required under paragraph (1) for each institution of higher education such student includes on such Application.

(8)

Interagency coordination

The Secretary, in consultation with each appropriate head of a department or agency of the Federal Government, shall ensure to the greatest extent practicable that any information related to higher education that is published by such department or agency is consistent with the information published on the College Dashboard website.

(9)

Data collection

The Commissioner for Education Statistics shall continue to update and improve the Integrated Postsecondary Education Data System, including by reducing institutional reporting burden and improving the timeliness of the data collected.

(10)

Data privacy

The Secretary shall ensure any information made available under this section is made available in accordance with section 444 of the General Education Provisions Act (commonly known as the Family Educational Rights and Privacy Act of 1974).

.

(b)

Conforming amendments

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as amended by subsection (a) of this section, is further amended, by striking College Navigator each place it appears and inserting College Dashboard.

(c)

References

Any reference in any law (other than this Act), regulation, document, record, or other paper of the United States to the College Navigator website shall be considered to be a reference to the College Dashboard website.

(d)

Development

The Secretary of Education shall develop and publish the College Dashboard website required under section 132 (20 U.S.C. 1015a), as amended by this section, not later than one year after the date of the enactment of this Act.

(e)

College Navigator website maintenance

The Secretary shall maintain the College Navigator website required under section 132 (20 U.S.C. 1015a), as in effect the day before the date of the enactment of this Act, in the manner required under the Higher Education Act of 1965, as in effect on such day, until the College Dashboard website referred to in subsection (d) is complete and publicly available on the Internet.

122.

Net price calculators

Subsection (c) of section 132 (20 U.S.C. 1015a), as so redesignated by section 121(a)(4) of this Act, is amended—

(1)

by redesignating paragraph (4) as paragraph (6); and

(2)

by inserting after paragraph (3) the following new paragraphs:

(4)

Minimum requirements for net price calculators

Not later than 1 year after the date of the enactment of the PROSPER Act, a net price calculator for an institution of higher education shall meet the following requirements:

(A)

The link for the calculator shall—

(i)

be clearly labeled as a net price calculator and prominently, clearly, and conspicuously posted in locations on the website of such institution where information on costs and aid is provided and any other location that the institution considers appropriate; and

(ii)

match in size and font to the other prominent links on the webpage where the link for the calculator is displayed.

(B)

The webpage displaying the results for the calculator shall specify at least the following information:

(i)

The net price (as calculated under subsection (a)(3)) for such institution, which shall be the most visually prominent figure on the results screen.

(ii)

Cost of attendance, including—

(I)

tuition and fees;

(II)

average annual cost of room and board for the institution for a full-time undergraduate student enrolled in the institution;

(III)

average annual cost of books and supplies for a full-time undergraduate student enrolled in the institution; and

(IV)

estimated cost of other expenses (including personal expenses and transportation) for a full-time undergraduate student enrolled in the institution.

(iii)

Estimated total need-based grant aid and merit-based grant aid from Federal, State, and institutional sources that may be available to a full-time undergraduate student.

(iv)

Percentage of the full-time undergraduate students enrolled in the institution that received any type of grant aid described in clause (iii).

(v)

The disclaimer described in paragraph (6).

(vi)

In the case of a calculator that—

(I)

includes questions to estimate the eligibility of a student or prospective student for veterans’ education benefits (as defined in section 480) or educational benefits for active duty service members, such benefits are displayed on the results screen in a manner that clearly distinguishes such benefits from the grant aid described in clause (iii); or

(II)

does not include questions to estimate eligibility for the benefits described in subclause (I), the results screen indicates that certain students (or prospective students) may qualify for such benefits and includes a link to information about such benefits.

(C)

The institution shall populate the calculator with data from an academic year that is not more than 2 academic years prior to the most recent academic year.

(5)

Prohibition on use of data collected by the net price calculator

A net price calculator for an institution of higher education shall—

(A)

clearly indicate which questions are required to be completed for an estimate of the net price from the calculator;

(B)

in the case of a calculator that requests contact information from users, clearly mark such requests as optional and provide for an estimate of the net price from the calculator without requiring users to enter such information; and

(C)

prohibit any personally identifiable information provided by users from being sold or made available to third parties.

.

123.

Text book information

Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amended by striking section 102 and inserting section 101 or 102.

D

Administrative Provisions for Delivery of Student Financial Assistance

131.

Performance-based organization for the delivery of Federal student financial assistance

Section 141 (20 U.S.C. 1018) is amended—

(1)

in subsection (a)(2)—

(A)

by redesignating subparagraphs (F) and (G) as subparagraphs (H) and (I), respectively; and

(B)

by inserting after subparagraph (E) the following:

(F)

to maximize transparency in the operation of Federal student financial assistance programs;

(G)

to maximize stakeholder engagement in the operation of and accountability for such programs;

;

(2)

in subsection (b)—

(A)

in paragraph (1)(C)—

(i)

in clause (i), by striking and at the end;

(ii)

in clause (ii), by striking the period at the end and inserting ; and; and

(iii)

by adding at the end the following:

(iii)

acquiring senior managers and other personnel with demonstrated management ability and expertise in consumer lending.

;

(B)

in paragraph (2) by adding at the end the following:

(C)

Collecting input from stakeholders on the operation of all Federal student assistance programs and accountability practices relating to such programs, and ensuring that such input informs operation of the PBO and is provided to the Secretary to inform policy creation related to Federal student financial assistance programs.

; and

(C)

in paragraph (6)—

(i)

in subparagraph (A), by striking The Secretary and inserting Not less frequently than once annually, the Secretary;

(ii)

by redesignating subparagraph (B) as subparagraph (C); and

(iii)

by inserting after subparagraph (A) the following: :

(B)

Report

On an annual basis, after carrying out the consultation required under subparagraph (A), the Secretary and the Chief Operating Officer shall jointly submit to the authorizing committees a report that includes—

(i)

a summary of the consultation; and

(ii)

a description of any actions taken as a result of the consultation..

.

(3)

in subsection (c)—

(A)

in paragraph (1)—

(i)

in subparagraph (A)—

(I)

by striking Each year, and inserting Not less frequently than once every three years; and

(II)

by striking succeeding 5 and inserting succeeding 3;

(ii)

by amending subparagraph (B) to read as follows:

(B)

Consultation

(i)

Plan development

Beginning not later than 12 months before issuing each 3-year performance plan under subparagraph (A), the Secretary and the Chief Operating Officer shall consult with students, institutions of higher education, Congress, lenders, and other interested parties regarding the development of the plan. In carrying out such consultation, the Secretary shall seek public comment consistent with the requirements of subchapter II of chapter 5 of title 5, United States Code (commonly known as the Administrative Procedure Act).

(ii)

Revision

Not later than 90 days before implementing any revision to the performance plan described in subparagraph (A), the Secretary shall consult with students, institutions of higher education, Congress, lenders, and other interested parties regarding such revision.

;

(iii)

in subparagraph (C)—

(I)

in the matter preceding clause (i), by inserting and target dates upon which such action steps will be taken and such goals will be achieved after achieve such goals;

(II)

by redesignating clause (v) as clause (vi);

(III)

by inserting after clause (iv) the following:

(v)

Ensuring transparency

Maximizing the transparency in the operations of the PBO, including complying with the data reporting requirements under section 144.

;

(B)

in paragraph (2)—

(i)

by striking 5-year and inserting 3-year;

(ii)

in subparagraph (C), by inserting , including an explanation of the specific steps the Secretary and the Chief Operating Officer will take to address any such goals that were not achieved before the period;

(iii)

in subparagraph (D), by inserting , in the aggregate and per individual before the period;

(iv)

in subparagraph (E), by striking Recommendations and inserting Specific recommendations;

(v)

by redesignating subparagraph (F) as subparagraph (G); and

(vi)

by inserting after subparagraph (E), the following:

(F)

A description of the performance evaluation system developed under subsection (d)(6).

.

(C)

in paragraph (3)—

(i)

in the matter preceding subparagraph (A), by striking establish appropriate means to;

(ii)

in subparagraph (A), by striking ; and and inserting and the PBO;;

(iii)

in subparagraph (B), by striking the period at the end and inserting and the PBO; and; and

(iv)

by adding at the end the following:

(C)

through a nationally-representative survey, that at a minimum shall evaluate the degree of satisfaction with the delivery system and the PBO.

;

(4)

in subsection (d)—

(A)

in paragraph (2), by striking The Secretary may reappoint and inserting Except as provided in paragraph (4)(C),

(B)

in paragraph (4)—

(i)

in subparagraph (A)—

(I)

by inserting specific, measurable after set forth; and

(II)

by inserting and metrics used to measure progress toward such goals before the period;

(ii)

by amending subparagraph (B) to read as follows:

(B)

Transmittal and public availability

The Secretary shall—

(i)

transmit to the authorizing committees the final version of, and any subsequent revisions to, the agreement entered into under subparagraph (A); and

(ii)

before the expiration of the period of 5 business days beginning after the date on which the agreement is transmitted under clause (i), make such agreement publicly available on a publicly accessible website of the Department of Education.

.

(iii)

by adding at the end the following:

(C)

Loss of eligibility

If the agreement under subparagraph (A) is not made publicly available before the expiration of the period described in subparagraph (B)(ii), the Chief Operating Officer shall not be eligible for reappointment under paragraph (2).

; and

(C)

in paragraph (5), by amending subparagraph (B) to read as follows:

(B)

Bonus

In addition, the Chief Operating Officer may receive a bonus in the following amounts:

(i)

For a period covered by a performance agreement entered into under paragraph (4) before the date of the enactment of the PROSPER Act, an amount that does not exceed 50 percent of the annual rate basic pay of the Chief Operating Officer, based upon the Secretary’s evaluation of the Chief Operating Officer’s performance in relation to the goals set forth in the performance agreement.

(ii)

For a period covered by a performance agreement entered into under paragraph (4) on or after the date of the enactment of the PROSPER Act, an amount that does not exceed 40 percent of the annual rate basic pay of the Chief Operating Officer, based upon the Secretary’s evaluation of the Chief Operating Officer’s performance in relation to the goals set forth in the performance agreement.

.

(D)

by adding at the end the following:

(6)

Performance evaluation system

The Secretary shall develop a system to evaluate the performance of the Chief Operating Officer and any senior managers appointed by such Officer under subsection (e). Such system shall—

(A)

take into account the extent to which each individual attains the specific, measurable organizational and individual goals set forth in the performance agreement described in paragraph (4)(A) and subsection (e)(2) (as the case may be); and

(B)

evaluate each individual using a rating system that accounts for the full spectrum of performance levels, from the failure of an individual to meet the goals described in clause (i) to an individual’s success in meeting or exceeding such goals.

;

(5)

in subsection (e)—

(A)

in paragraph (2), by striking organization and individual goals and inserting specific, measurable organization and individual goals and the metrics used to measure progress toward such goals;

(B)

in paragraph (3), by amending subparagraph (B) to read as follows:

(B)

Bonus

In addition, a senior manager may receive a bonus in the following amounts:

(i)

For a period covered by a performance agreement entered into under paragraph (2) before the date of the enactment of the PROSPER Act, an amount such that the manager’s total annual compensation does not exceed 125 percent of the maximum rate of basic pay for the Senior Executive Service, including any applicable locality-based comparability payment, based upon the Chief Operating Officer’s evaluation of the manager’s performance in relation to the goals set forth in the performance agreement.

(ii)

For a period covered by a performance agreement entered into under paragraph (2) on or after the date of the enactment of the PROSPER Act, an amount such that the manager’s total annual compensation does not exceed 120 percent of the maximum rate of basic pay for the Senior Executive Service, including any applicable locality-based comparability payment, based upon the Chief Operating Officer’s evaluation of the manager’s performance in relation to the goals set forth in the performance agreement.

.

(6)

by redesignating subsections (f), (g), (h), and (i) as subsections (g), (h), (i), (j); and

(7)

by inserting after subsection (e) the following:

(f)

Advisory board

(1)

Establishment and purpose

Not later than one year after the date of the enactment of the PROSPER Act, the Secretary shall establish an Advisory Board (referred to in this subsection as the Board) for the PBO. The purpose of such Board shall be to conduct oversight over the PBO and the Chief Operating Officer and senior managers described under subsection (e) to ensure that the PBO is meeting the purposes described in this section and the goals in the performance plan described under such section.

(2)

Membership

(A)

Board members

The Board shall consist of 7 members, one of whom shall be the Secretary.

(B)

Chairman

A Chairman of the Board shall be elected by the Board from among its members for a 2-year term.

(C)

Secretary as an ex officio member

The Secretary, ex officio—

(i)

shall—

(I)

serve as a member of the Board;

(II)

be a voting member of the Board; and

(III)

be eligible to be elected by the Board to serve as chairman or vice chairman of the Board; and

(ii)

shall not be subject to the terms or compensation requirements described in this paragraph that are applicable to the other members of the Board.

(D)

Additional board members

Each member of the Board (excluding the Secretary) shall be appointed by the Secretary.

(E)

Terms

(i)

In general

Each Board member, except for the Secretary and the Board members described in clause (ii)(II), shall serve 5-year terms.

(ii)

Initial members

(I)

First 3 members

The first 3 members confirmed to serve on the Board after the date of enactment of the PROSPER Act shall serve for 5-year terms.

(II)

Other members

The fourth, fifth, and sixth members confirmed to serve on the Board after such date of enactment shall serve for 3-year terms.

(iii)

Reappointment

The Secretary may reappoint a Board member for one additional 5-year term.

(iv)

Vacancies

(I)

In general

Not later than 30 days after a vacancy of the Board occurs, the Secretary shall publish a Federal Register notice soliciting nominations for the position.

(II)

Filling vacancy

Not later than 90 days after such vacancy occurs, such vacancy shall be filled in the same manner as the original appointment was made, except that—

(aa)

the appointment shall be for the remainder of the uncompleted term; and

(bb)

such member may be reappointed under clause (iii).

(F)

Membership qualifications and prohibitions

(i)

Qualifications

The members of the board, other than the Secretary, shall be appointed without regard to political affiliation and solely on the basis of their professional experience and expertise in—

(I)

the management of large and financially significant organizations, including banks and commercial lending companies; or

(II)

Federal student financial assistance programs.

(ii)

Conflicts of interest among board members

Before appointing members of the Board, the Secretary shall establish rules and procedures to address any potential conflict of interest between a member of the Board and responsibilities of the Board, including prohibiting membership for individuals with a pecuniary interest in the activities of the PBO.

(G)

No compensation

Board members shall serve without pay.

(H)

Expenses of Board Members

Each member of the Board shall receive travel expenses and other permissible expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under title 5, United States Code.

(3)

Board responsibilities

The Board shall have the following responsibilities:

(A)

Conducting general oversight over the functioning and operation of the PBO, including—

(i)

ensuring that the reporting and planning requirements of this section are fulfilled by the PBO; and

(ii)

ensuring that the Chief Operating Officer acquires senior managers with demonstrated management ability and expertise in consumer lending (as described in subsection (b)(1)(C)(iii)).

(B)

Approving the appointment or reappointment of a Chief Operating Officer, except that the board shall have no authority to approve or disapprove the reappointment of the Chief Operating Officer who holds such position on the date of enactment of the PROSPER Act.

(C)

Making recommendations with respect to the suitability of any bonuses proposed to be provided to the Chief Operating Officer or senior managers described under subsections (d) and (e), to ensure that a bonus is not awarded to the Officer or a senior manager in a case in which such Officer or manager has failed to meet goals set for them under the relevant performance plan under subsections (d)(4) and (e)(2), respectively.

(D)

Approving any performance plan established for the PBO.

(4)

Board operations

(A)

Meetings

The Board shall meet at least twice per year and at such other times as the chairperson determines appropriate.

(B)

Powers of chairperson

Except as otherwise provided by a majority vote of the Board, the powers of the chairperson shall include—

(i)

establishing committees;

(ii)

setting meeting places and times;

(iii)

establishing meeting agendas; and

(iv)

developing rules for the conduct of business.

(C)

Quorum

Four members of the Board shall constitute a quorum. A majority of members present and voting shall be required for the Board to take action.

(D)

Administration

The Federal Advisory Committee Act shall not apply with respect to the Board, other than sections 10, 11 and 12 of such Act.

(5)

Annual report

(A)

In general

Not less frequently than once annually, the Board shall submit to the authorizing committees a report on the results of the work conducted by the PBO.

(B)

Contents

Each report under clause (i) shall include—

(i)

a description of the oversight work of the Board and the results of such work;

(ii)

a description of statutory requirements of this section and section 144 where the PBO is not in compliance;

(iii)

recommendations on the appointment or reappointment of a Chief Operating Officer;

(iv)

recommendations regarding bonus payments for the Chief Operating Officer and senior managers; and

(v)

recommendations for the authorizing Committees and the Appropriations Committees on—

(I)

any statutory changes needed that would enhance the ability of the PBO to meet the purposes of this section; and

(II)

any recommendations for the Secretary or the Chief Operating Officer that will improve the operations of the PBO.

(vi)

Issuance and Public Release

Each report under clause (i) shall be posted on the publicly accessible website of the Department of Education.

(vii)

PBO Recommendations

Not later than 180 days after the submission of each report under clause (i), the Chief Operating Officer shall respond to each recommendation individually, which shall include a description of such actions that the Officer is undertaking to address such recommendation.

(C)

Staff

(i)

In general

The Secretary may appoint to the Board not more than 7 employees to assist in carrying out the duties of the Board under this section.

(ii)

Technical Employees

Such appointments may include, for terms not to exceed 3 years and without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, not more than 3 technical employees who may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, but no individual so appointed shall be paid in excess of the rate authorized for GS–18 of the General Schedule.

(iii)

Detailees

The Secretary may detail, on a reimbursable basis, any of the personnel of the Department for the purposes described in clause (i). Such employees shall serve without additional pay, allowances, or benefits.

(iv)

Statutory construction

Nothing in this subparagraph shall be construed to provide for an increase in the total number of permanent full-time equivalent positions in the Department or any other department or agency of the Federal Government.

(6)

Briefing on activities of the oversight board

The Secretary shall, upon request, provide a briefing to the authorizing committees on the steps the Board has taken to carry out its responsibilities under this subsection.

.

132.

Administrative data transparency

Part D of title I (20 U.S.C. 1018 et seq.) is amended by adding at the end the following:

144.

Administrative data transparency

(a)

In general

To improve the transparency of the student aid delivery system, the Secretary and the Chief Operating Officer shall collect and publish information on the performance of student loan programs under title IV in accordance with this section.

(b)

Disclosures

(1)

In general

The Secretary and the Chief Operating Officer shall publish on a publicly accessible website of the Department of Education the following aggregate statistics with respect to the performance of student loans under title IV:

(A)

The number of borrowers who paid off the total outstanding balance of principal and interest on their loans before the end of the 10-year or consolidated loan repayment schedule.

(B)

The number of loans under each type of deferment and forbearance.

(C)

The average length of time a loan stays in default.

(D)

The percentage of loans in default among borrowers who completed the program of study for which the loans were made.

(E)

The number of borrowers enrolled in an income-based repayment plan who make monthly payments of $0 and the average student loan debt of such borrowers.

(F)

The number of students whose loan balances are growing because such students are not paying the full amount of interest accruing on the loans.

(G)

The number of borrowers entering income-based repayment plans to get out of default.

(H)

The number of borrowers in income-based repayment plans who have outstanding student loans from graduate school, and the average balance of such loans.

(I)

With respect to the public service loan forgiveness program under section 455(m)—

(i)

the number of applications submitted and processed;

(ii)

the number of borrowers granted loan forgiveness;

(iii)

the amount of loan debt forgiven; and

(iv)

the number of borrowers granted loan forgiveness, and the amount of the loan debt forgiven, disaggregated by each category of employer that employs individuals in public service jobs (as defined in section 455(m)(3)(B), including—

(I)

the Federal Government, or a State or local government;

(II)

an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; and

(III)

a non-profit organization not described in subclause (II).

(J)

Any other aggregate statistics the Secretary and the Chief Operating Officer determine to be necessary to adequately inform the public of the performance of the student loan programs under title IV.

(2)

Disaggregation

The statistics described in clauses (i) through (iii) of paragraph (1)(I) shall be disaggregated—

(A)

by the number or amount for most recent quarter;

(B)

by the total number or amount as of the date of publication;

(C)

by repayment plan;

(D)

by borrowers seeking loan forgiveness for loans made for an undergraduate course of study; and

(E)

by borrowers seeking loan forgiveness for loans made for a graduate course of study.

(3)

Quarterly updates

The statistics published under paragraph (1) shall be updated not less frequently than once each fiscal quarter.

(c)

Information collection

(1)

In general

The Secretary and the Chief Operating Officer shall collect information on the performance of student loans under title IV over time, including—

(A)

measurement of the cash flow generated by such loans as determined by assessing monthly payments on the loans over time;

(B)

the income level and employment status of borrowers during repayment;

(C)

the loan repayment history of borrowers prior to default;

(D)

the progress of borrowers in making monthly payments on loans after defaulting on the loans; and

(E)

such other information as the Secretary and the Chief Operating Officer determine to be appropriate.

(2)

Availability

(A)

In general

The information collected under paragraph (1) shall be made available biannually to organizations and researchers that—

(i)

submit to the Secretary and the Chief Operating officer a request for such information; and

(ii)

enter into an agreement with the National Center for Education Statistics under which the organization or researcher (as the case may be) agrees to use the information in accordance with the privacy laws described in subparagraph (B).

(B)

Privacy protections

The privacy laws described in this subparagraph are the following:

(i)

Section 183 of the Education Sciences Reform Act of 2002 (20 U.S.C. 9573).

(ii)

The Privacy Act of 1974 (5 U.S.C. 552a).

(iii)

Section 444 of the General Education Provisions Act (commonly known as the Family Educational Rights and Privacy Act of 1974) (20 U.S.C. 1232g).

(iv)

Subtitle A of title V of the E–Government Act of 2002 (44 U.S.C. 3501 note).

(C)

Format

The information described in subparagraph (A) shall be made available in the format of a data file that contains an statistically accurate, representative sample of all borrowers of loans under title IV.

(d)

Data sharing

The Secretary and the Chief Operating Officer may enter into cooperative data sharing agreements with other Federal or State agencies to ensure the accuracy of information collected and published under this section.

(e)

Privacy

The Secretary and the Chief Operating Officer shall ensure that any information collected, published, or otherwise made available under this section does not reveal personally identifiable information.

.

E

Lender and Institution Requirements Relating to Education Loans

141.

Modification of preferred lender arrangements

(a)

In general

Part E of title I (20 U.S.C. 1019 et seq.) is amended—

(1)

in section 151 (20 U.S.C. 1019(2))—

(A)

in paragraph (2), by striking section 102 and inserting section 101 or 102;

(B)

in paragraph (3)—

(i)

by striking or at the end of subparagraph (B);

(ii)

by redesignating subparagraph (C) as subparagraph (D); and

(iii)

by inserting after subparagraph (B), the following:

(C)

any loan made under part E of title IV after the date of enactment of the PROSPER Act; or

;

(C)

in paragraph (6)(A)—

(i)

by striking and at the end of clause (ii);

(ii)

by redesignating clause (iii) as clause (iv); and

(iii)

by inserting after clause (ii), the following:

(iii)

in the case of a loan issued or provided to a student under part E of title IV on or after the date of enactment of the PROSPER Act;

;

(D)

in paragraph (8)(B)(ii)—

(i)

by striking or at the end of clause (i);

(ii)

by redesignating clause (ii) as clause (iii); and

(iii)

by inserting after clause (i), the following:

(ii)

arrangements or agreements with respect to loans under part E of title IV; or

;

(2)

in section 152 (20 U.S.C. 1019)—

(A)

in subsection (a)(1)—

(i)

in subparagraph (B), by amending clause (i) to read as follows:

(i)

make available to the prospective borrower on a website or with informational material, the information the Board of Governors of the Federal Reserve System requires the lender to provide to the covered institution under section 128(e)(11) of the Truth in Lending Act (15 U.S.C. 1638(e)(11)) for such loan;

; and

(ii)

by adding at the end the following:

(D)

Special rule

Notwithstanding any other provision of law, a covered institution, or an institution-affiliated organization of such covered institution, shall not be required to provide any information regarding private education loans to prospective borrowers except for the information described in subparagraph (B).

; and

(B)

in subsection (b)(1)(A)(i), by striking part B or D and inserting part B, D, or E;

(3)

in section 153 (20 U.S.C. 1019b)—

(A)

in subsection (a)—

(i)

in paragraph (1)(B)—

(I)

in clause (i), by adding and at the end;

(II)

in clause (ii), by striking ; and at the end and inserting a period; and

(III)

by striking clause (iii); and

(ii)

in paragraph (2), by amending subparagraph (C) to read as follows:

(C)

update such model disclosure form not later than 180 after the date of enactment of the PROSPER Act, and periodically thereafter, as necessary.

; and

(B)

by amending subsection (c) to read as follows:

(c)

Duties of covered institutions and institution-Affiliated organizations

(1)

Code of conduct

Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall comply with the code of conduct requirements of subparagraphs (A) through (C) of section 487(a)(22).

(2)

Applicable code of conduct

For purposes of subparagraph (A), an institution-affiliated organization of a covered institution shall—

(A)

comply with the code of conduct developed and published by such covered institution under subparagraphs (A) and (B) of section 487(a)(22);

(B)

if such institution-affiliated organization has a website, publish such code of conduct prominently on the website; and

(C)

administer and enforce such code of conduct by, at a minimum, requiring that all of such organization’s agents with responsibilities with respect to education loans be annually informed of the provisions of such code of conduct.

; and

(4)

in section 154 (20 U.S.C. 1019c)—

(A)

in the subsection heading, by inserting before the period the following: or the Federal ONE Loan Program;

(B)

by striking William D. Ford Direct Loan Program each place it appears and inserting William D. Ford Direct Loan Program or the Federal ONE Loan Program

(C)

by striking part D each place it appears and inserting part D or E; and

(D)

in subsection (a)—

(i)

by striking the development and inserting the first update;

(ii)

by striking section 153(a)(2)(B) and inserting section 153(a)(2)(C); and

(iii)

by striking Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS and inserting undergraduate, graduate, and parent.

(b)

Limitation

The Secretary of Education shall not impose, administer, or enforce any requirements on a covered institution or an institution-affiliated organization of a covered institution relating to preferred lender lists or arrangements unless explicitly authorized by sections 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 1019b(c), or 1094(h), respectively) as amended by this Act.

F

Addressing sexual assault

151.

Addressing sexual assault

Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end the following new part:

F

Addressing Sexual Assault

161.

Application

The requirements of this part shall apply to any institution of higher education receiving Federal financial assistance under this Act, including financial assistance provided to students under title IV, other than—

(1)

an institution outside the United States; or

(2)

an institution that provides instruction primarily through online courses.

162.

Campus climate surveys

(a)

Surveys To measure campus attitudes and climate regarding sexual assault and misconduct on campus

Each institution of higher education that is subject to this part shall conduct surveys of its students to measure campus attitudes towards sexual assault and the general climate of the campus regarding the institution’s treatment of sexual assault on campus, and shall use the results of the survey to improve the institution’s ability to prevent and respond appropriately to incidents of sexual assault.

(b)

Contents

The institution’s survey under this section shall consist of such questions as the institution considers appropriate, which may (at the option of the institution) include any of the following:

(1)

Questions on the incidence and prevalence of sexual assault experienced by students.

(2)

Questions on whether students who experience sexual assault report such incidents to campus officials or law enforcement agencies.

(3)

Questions on whether the alleged perpetrators are students of the institution.

(4)

Questions to test the students’ knowledge and understanding of institutional policies regarding sexual assault and available campus support services for victims of sexual assault.

(5)

Questions to test the students’ knowledge, understanding, and retention of campus sexual assault prevention and awareness programming.

(6)

Questions related to dating violence, domestic violence, and stalking.

(c)

Other issues relating to the administration of surveys

(1)

Mandatory confidentiality of responses

The institution shall ensure that all responses to surveys under this section are kept confidential and do not require the respondents to provide personally identifiable information.

(2)

Encouraging use of best practices and appropriate language

The institution is encouraged to administer the surveys under this section in accordance with best practices derived from peer-reviewed research, and to use language that is sensitive to potential respondents who may have been victims of sexual assault.

(3)

Encouraging responses

The institution shall make a good faith effort to encourage students to respond to the surveys.

(d)

Role of Secretary

(1)

Development of sample surveys

The Secretary, in consultation with relevant stakeholders, shall develop sample surveys that an institution may elect to use under this section, and shall post such surveys on a publicly accessible website of the Department of Education. The Secretary shall develop sample surveys that are suitable for the various populations who will participate in the surveys.

(2)

Limit on other activities

In carrying out this section, the Secretary—

(A)

may not regulate or otherwise impose conditions on the contents of an institution’s surveys under this section, except as may be necessary to ensure that the institution meets the confidentiality requirements of subsection (c)(1); and

(B)

may not use the results of the surveys to make comparisons between institutions of higher education.

(e)

Frequency

An institution of higher education that is subject to this part shall conduct a survey under this section not less frequently than once every 3 academic years.

163.

Survivors’ counselors

(a)

Requiring institutions To make counselor available

(1)

In general

Each institution of higher education that is subject to this part shall retain the services of qualified sexual assault survivors’ counselors to counsel and support students who are victims of sexual assault.

(2)

Use of contractors permitted

At the option of the institution, the institution may retain the services of counselors who are employees of the institution or may enter into agreements with other institutions of higher education, victim advocacy organizations, or other appropriate sources to provide counselors for purposes of this section.

(3)

Number

The institution shall retain such number of counselors under this section as the institution considers appropriate based on a reasonable determination of the anticipated demand for such counselors’ services, so long as the institution retains the services of at least one such counselor at all times.

(b)

Qualifications

A counselor is qualified for purposes of this section if the counselor has completed education specifically designed to enable the counselor to provide support to victims of sexual assault, and is familiar with relevant laws on sexual assault as well as the institution’s own policies regarding sexual assault.

(c)

Informing victims of available options and services

In providing services pursuant to this section, a counselor shall—

(1)

inform the victim of sexual assault of options available to victims, including the procedures the victim may follow to report the assault to the institution or to a law enforcement agency; and

(2)

inform the victim of interim measures that may be taken pending the resolution of institutional disciplinary proceedings or the conclusion of criminal justice proceedings.

(d)

Confidentiality

(1)

Maintaining confidentiality of information

In providing services pursuant to this section, a counselor shall—

(A)

maintain confidentiality with respect to any information provided by a victim of sexual assault to the greatest extent permitted under applicable law; and

(B)

notify the victim of any circumstances under which the counselor is required to report information to others (including a law enforcement agency) notwithstanding the general requirement to maintain confidentiality under subparagraph (A).

(2)

Maintaining privacy of records

A counselor providing services pursuant to this section shall be considered a recognized professional for purposes of section 444(a)(4)(B)(iv) of the General Education Provisions Act (commonly known as the Family Educational Rights and Privacy Act of 1974) (20 U.S.C. 1232g(a)(4)(B)(iv)).

(e)

Limitations

(1)

No reporting of incidents under Clery Act or other authority

A counselor providing services pursuant to this section is not required to report incidents of sexual assault that are reported to the counselor for inclusion in any report on campus crime statistics, and shall not be considered part of a campus police or security department for purposes of section 485(f).

(2)

No coverage of counselors as responsible employees under Title IX

A counselor providing services pursuant to this section on behalf of an institution of higher education shall not be considered a responsible employee of the institution for purposes of title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.) or the regulations promulgated pursuant to such title.

(f)

Notifications to Students

Each institution of higher education that is subject to this part shall make a good faith effort to notify its students of the availability of the services of counselors pursuant to this section through the statement of policy described in section 485(f)(8)(B)(vi) and any other methods as the institution considers appropriate, including disseminating information through the institution’s website, posting notices throughout the campus, and including information as part of programs to educate students on sexual assault prevention and awareness.

164.

Form to distribute to victims of sexual assault

(a)

Requirement To develop and distribute form

Each institution of higher education that is subject to this part shall develop a one-page form containing information to provide guidance and assistance to students who may be victims of sexual assault, and shall make the form widely available to students.

(b)

Contents of form

The form developed under this section shall contain such information as the institution considers appropriate, and may include the following:

(1)

Information about the services of counselors which are available pursuant to section 163, including a statement that the counselor will provide the maximum degree of confidentiality permitted under law, and a brief description of the circumstances under which the counselor may be required to report information notwithstanding the victim’s desire to keep the information confidential.

(2)

Information about other appropriate campus resources and resources in the local community, including contact information.

(3)

Information about where to obtain medical treatment, and information about transportation services to such medical treatment facilities, if available.

(4)

Information about the importance of preserving evidence after a sexual assault.

(5)

Information about how to file a report with local law enforcement agencies.

(6)

Information about the victim’s right to request accommodations, and examples of accommodations that may be provided.

(7)

Information about the victim’s right to request that the institution begin an investigation of an allegation of sexual assault and initiate an institutional disciplinary proceeding if the alleged perpetrator of the assault is another student or a member of the faculty or staff of the institution.

(8)

A statement that an institutional disciplinary proceeding is not a substitute for a criminal justice proceeding.

(9)

Information about how to report a sexual assault to the institution, including the designated official or office responsible for receiving these reports.

(c)

Development of model forms

The Secretary, in consultation with relevant stakeholders, shall develop model forms that an institution may use to meet the requirements of this section, and shall include in such model forms language which may accommodate a variety of State and local laws and institutional policies. Nothing in this subsection may be construed to require an institution to use any of the model forms developed under this subsection.

165.

Memoranda of understanding with local law enforcement agencies

(a)

Findings; Purpose

(1)

Findings

Because sexual assault is a serious crime, coordination and cooperation between institutions of higher education and law enforcement agencies are critical in ensuring that reports of sexual assaults on campus are handled in an appropriate and effective manner. A memorandum of understanding entered into between an institution and the law enforcement agency with primary jurisdiction for responding to reports of sexual assault on the institution’s campus is a useful tool to promote this coordination and cooperation.

(2)

Purpose

It is the purpose of this section to encourage each institution of higher education that is subject to this part to enter into a memorandum of understanding with the law enforcement agency with primary jurisdiction for responding to reports of sexual assault on the institution’s campus so that reports of sexual assault on the institution’s campus may be handled in an appropriate and effective manner.

(b)

Contents of memorandum

An institution of higher education and a law enforcement agency entering into a memorandum of understanding described in this section are encouraged to include in the memorandum provisions addressing the following:

(1)

An outline of the protocols and a delineation of responsibilities for responding to a report of sexual assault occurring on campus.

(2)

A clarification of each party’s responsibilities under existing Federal, State, and local law or policies.

(3)

The need for the law enforcement agency to know about institutional policies and resources so that the agency can direct student-victims of sexual assault to such resources.

(4)

The need for the institution to know about resources available within the criminal justice system to assist survivors, including the presence of special prosecutor or police units specifically designated to handle sexual assault cases.

(5)

If the institution has a campus police or security department with law enforcement authority, the need to clarify the relationship and delineate the responsibilities between such department and the law enforcement agency with respect to handling incidents of sexual assaults occurring on campus.

(c)

Role of Secretary

The Secretary, in consultation with the Attorney General, shall develop best practices for memoranda of understanding described in this section, and shall disseminate such best practices on a publicly accessible website of the Department of Education.

166.

Definitions

In this part:

(1)

The term sexual assault has the meaning given such term in section 485(f)(6)(A)(v).

(2)

The terms dating violence, domestic violence, and stalking, have the meaning given such terms in section 485(f)(6)(A)(i).

.

II

Expanding Access to In-Demand Apprenticeships

201.

Repeal

(a)

Repeal

Title II (20 U.S.C. 1021 et seq.) is repealed.

(b)

Part A transition

Part A of title II (20 U.S.C. 1022 et seq.), as in effect on the day before the date of the enactment of this Act, may be carried out using funds that have been appropriated for such part until June 30, 2018.

202.

Grants for access to high-demand careers

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended by inserting after title I the following:

II

Expanding Access to In-Demand Apprenticeships

201.

Apprenticeship grant program

(a)

Purpose

The purpose of this section is to expand student access to, and participation in, new industry-led earn-and-learn programs leading to high-wage, high-skill, and high-demand careers.

(b)

Authorization of apprenticeship grant program

(1)

In general

From the amounts authorized under subsection (j), the Secretary shall award grants, on a competitive basis, to eligible partnerships for the purpose described in subsection (a).

(2)

Duration

The Secretary shall award grants under this section for a period of—

(A)

not less than 1 year; and

(B)

not more than 4 years.

(3)

Limitations

(A)

Amount

A grant awarded under this section may not be in an amount greater than $1,500,000.

(B)

Number of awards

An eligible partnership or member of such partnership may not be awarded more than one grant under this section.

(C)

Administration costs

An eligible partnership awarded a grant under this section may not use more than 5 percent of the grant funds to pay administrative costs associated with activities funded by the grant.

(c)

Matching funds

To receive a grant under this section, an eligible partnership shall, through cash or in-kind contributions, provide matching funds from non-Federal sources in an amount equal to or greater than 50 percent of the amount of such grant.

(d)

Applications

(1)

In general

To receive a grant under this section, an eligible partnership shall submit to the Secretary at such a time as the Secretary may require, an application that—

(A)

identifies and designates the business or institution of higher education responsible for the administration and supervision of the earn-and-learn program for which such grant funds would be used;

(B)

identifies the businesses and institutions of higher education that comprise the eligible partnership;

(C)

identifies the source and amount of the matching funds required under subsection (c);

(D)

identifies the number of students who will participate and complete the relevant earn-and-learn program within 1 year of the expiration of the grant;

(E)

identifies the amount of time, not to exceed 2 years, required for students to complete the program;

(F)

identifies the relevant recognized postsecondary credential to be awarded to students who complete the program;

(G)

identifies the anticipated earnings of students—

(i)

1 year after program completion; and

(ii)

3 years after program completion;

(H)

describes the specific project for which the application is submitted, including a summary of the relevant classroom and paid structured on-the-job training students will receive;

(I)

describes how the eligible partnership will finance the program after the end of the grant period;

(J)

describes how the eligible partnership will support the collection of information and data for purposes of the program evaluation required under subsection (h); and

(K)

describes the alignment of the program with State identified in-demand industry sectors.

(2)

Application review process

(A)

Review panel

Applications submitted under paragraph (1) shall be read by a panel of readers composed of individuals selected by the Secretary. The Secretary shall assure that an individual assigned under this paragraph does not have a conflict of interest with respect to the applications reviewed by such individual.

(B)

Composition of review panel

The panel of reviewers selected by the Secretary under subparagraph (A) shall be comprised as follows:

(i)

A majority of the panel shall be individuals who are representative of businesses, which may include owners, executives with optimum hiring authority, or individuals representing business organizations or business trade associations.

(ii)

The remainder of the panel shall be equally divided between individuals who are—

(I)

representatives of institutions of higher education that offer programs of two years or less; and

(II)

representatives of State workforce development boards established under section 101 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3111).

(C)

Review of applications

The Secretary shall instruct the review panel selected by the Secretary under paragraph (2)(A) to evaluate applications using only the criteria specified in paragraph (1) and make recommendations with respect to—

(i)

the quality of the applications;

(ii)

whether a grant should be awarded for a project under this title; and

(iii)

the amount and duration of such grant.

(D)

Notification

Not later than June 30 of each year, the Secretary shall notify each eligible partnership submitting an application under this section of—

(i)

the scores given the applicant by the panel pursuant to this section;

(ii)

the recommendations of the panel with respect to such application; and

(iii)

the reasons for the decision of the Secretary in awarding or refusing to award a grant under this section; and

(iv)

modifications, if any, in the recommendations of the panel made to the Secretary.

(e)

Award basis

The Secretary shall award grants under this section on the following basis—

(1)

the number of participants to be served by the grant;

(2)

the anticipated income of program participants in relation to the regional median income;

(3)

the alignment of the program with State-identified in-demand industry sectors; and

(4)

the recommendations of the readers under subsection (d)(2)(C).

(f)

Use of funds

Grant funds provided under this section may be used for—

(1)

the purchase of appropriate equipment, technology, or instructional material, aligned with business and industry needs, including machinery, testing equipment, hardware and software;

(2)

student books, supplies, and equipment required for enrollment;

(3)

the reimbursement of up to 50 percent of the wages of a student participating in an earn-and-learn program receiving a grant under this section;

(4)

the development of industry-specific programing;

(5)

supporting the transition of industry-based professionals from an industry setting to an academic setting;

(6)

industry-recognized certification exams or other assessments leading to a recognized postsecondary credential associated with the earn-and-learn program; and

(7)

any fees associated with the certifications or assessments described in paragraph (6).

(g)

Technical assistance

The Secretary may provide technical assistance to eligible partnerships awarded under this section throughout the grant period for purposes of grant management.

(h)

Evaluation

(1)

In general

From the amounts made available under subsection (j), the Secretary, acting through the Director of the Institute for Education Sciences, shall provide for the independent evaluation of the grant program established under this section that includes the following:

(A)

An assessment of the effectiveness of the grant program in expanding earn-and-learn program opportunities offered by employers in conjunction with institutions of higher education.

(B)

The number of students who participated in programs assisted under this section.

(C)

The percentage of students participating in programs assisted under this section who successfully completed the program in the time described in subsection (d)(1)(E).

(D)

The median earnings of program participants—

(i)

1 year after exiting the program; and

(ii)

3 years after exiting the program.

(E)

The percentage of students participating in programs assisted under this section who successfully receive a recognized postsecondary credential.

(F)

The number of students served by programs receiving funding under this section—

(i)

2 years after the end of the grant period;

(ii)

4 years after the end of the grant period.

(2)

Prohibition

Notwithstanding any other provision of law, the evaluation required by this subsection shall not be subject to any review outside the Institute for Education Sciences before such reports are submitted to Congress and the Secretary.

(3)

Publication

The evaluation required by this subsection shall be made publicly available on the website of the Department.

(i)

Definitions

In this section:

(1)

Earn-and-learn program

The term earn-and-learn program means an education program, including an apprenticeship program, that provides students with structured, sustained, and paid on-the-job training and accompanying, for credit, classroom instruction that—

(A)

is for a period of between 3 months and 2 years; and

(B)

leads to, on completion of the program, a recognized postsecondary credential.

(2)

Eligible partnership

The term eligible partnership shall mean a consortium that includes—

(A)

one or more businesses; and

(B)

one or more institutions of higher education.

(3)

In-demand industry sector or occupation

The term in-demand industry sector or occupation has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(4)

On-the-job training

The term on-the-job training has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(5)

Recognized postsecondary credential

The term recognized postsecondary credential has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(j)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $183,204,000 for fiscal year 2019 and each of the 5 succeeding fiscal years.

.

III

Institutional Aid

301.

Strengthening institutions

Part A of title III (20 U.S.C. 1057 et seq.) is amended—

(1)

in the part heading for part A, by inserting Minority-serving after Strengthening;

(2)

in section 311—

(A)

by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively;

(B)

in subsection (b) (as so redesignated)—

(i)

by striking paragraph (6) and inserting the following:

(6)

Tutoring, counseling, advising, and student service programs designed to improve academic success, including innovative and customized instructional courses (which may include remedial education and English language instruction) designed to help retain students and move the students rapidly into core courses and through program completion.

;

(ii)

in paragraph (8), by striking acquisition of equipment for use in strengthening funds management and inserting acquisition of technology, services, and equipment for use in strengthening funds and administrative management;

(iii)

in paragraph (12), by striking Creating and all that follows through technologies, and inserting Innovative learning models and creating or improving facilities for Internet or other innovative technologies,;

(iv)

by redesignating paragraph (13) as paragraph (18); and

(v)

by inserting after paragraph (12) the following:

(13)

Establishing community outreach programs that will encourage elementary school and secondary school students to develop the academic skills and the interest to pursue postsecondary education.

(14)

The development, coordination, implementation, or improvement of career and technical education programs as defined in section 135 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2355).

(15)

Alignment and integration of career and technical education programs with programs of study leading to a bachelor’s degree, graduate degree, or professional degree.

(16)

Developing or expanding access to dual or concurrent enrollment programs and early college high school programs.

(17)

Pay for success initiatives that improve time to completion and increase graduation rates.

; and

(C)

in subsection (c) (as so redesignated), by adding at the end the following:

(4)

Scholarship

An institution that uses grant funds provided under this part to establish or increase an endowment fund may use the income from such endowment fund to provide scholarships to students for the purposes of attending such institution, subject to the limitation in section 331(c)(3)(B)(i).

;

(3)

in section 312—

(A)

in subsection (a), by striking transfers which the institution and inserting transfers that the institution;

(B)

in subsection (b)(1)—

(i)

by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (E), respectively;

(ii)

in subparagraph (E) (as so redesignated), by inserting (as defined in section 103(20)(A)) after State; and

(iii)

in subparagraph (F) (as so redesignated), by striking and at the end; and

(C)

in subsection (b)—

(i)

by striking the period at the end of paragraph (2) and inserting ; and; and

(ii)

by inserting after paragraph (2) the following:

(3)

except as provided in section 392(b), an institution that has a completion rate of at least 25 percent that is calculated by counting a student as completed if that student—

(A)

graduates within 150 percent of the normal time for completion; or

(B)

enrolled into another program at an institution for which the previous program provided substantial preparation within 150 percent of the normal time for completion.

;

(4)

in section 313—

(A)

in subsection (a)—

(i)

by striking for 5 years and inserting for a period of 5 years; and

(ii)

by adding at the end the following: Any funds awarded under this section that are not expended or used for the purposes for which the funds were paid within 10 years following the date on which the grant was awarded, shall be repaid to the Treasury.; and

(B)

by striking subsection (d);

(5)

in section 316—

(A)

in subsection (c)—

(i)

in paragraph (2)—

(I)

by striking subparagraph (A) and inserting the following:

(A)

the activities described in paragraphs (1) through (12) and (14) through (17) of section 311(b);

;

(II)

by striking subparagraphs (E) through (J);

(III)

by redesignating subparagraphs (K) and (L) as subparagraphs (E) and (F), respectively;

(IV)

by striking subparagraph (M);

(V)

by redesignating subparagraph (N) as subparagraph (G); and

(VI)

in subparagraph (G) (as so redesignated), by striking (M) and inserting (F); and

(ii)

by striking paragraph (3) and inserting the following:

(3)

Endowment fund

A Tribal College or University seeking to establish or increase an endowment fund shall abide by the requirements in section 311(c).

; and

(B)

in subsection (d)—

(i)

by striking paragraph (2) and inserting the following:

(2)

Application

A Tribal College or University desiring to receive assistance under this section shall submit an application to the Secretary pursuant to section 391.

; and

(ii)

in paragraph (4)—

(I)

in subparagraph (A), by striking part A of; and

(II)

in subparagraph (B), by striking 313(d) and inserting 312(b)(3);

(6)

in section 317—

(A)

in subsection (c)—

(i)

by striking paragraph (2) and inserting the following:

(2)

Examples of authorized activities

Such programs may include—

(A)

the activities described in paragraphs (1) through (17) of section 311(b); and

(B)

other activities proposed in the application submitted pursuant to subsection (d) that—

(i)

contribute to carrying out the purpose of this section; and

(ii)

are approved by the Secretary as part of the review and approval of an application submitted under subsection (d).

; and

(ii)

by adding at the end the following:

(3)

Endowment fund

An Alaska Native-serving institution and Native Hawaiian-serving institution seeking to establish or increase an endowment fund shall abide by the requirements in section 311(c).

; and

(B)

in subsection (d)—

(i)

by striking paragraph (1) and redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;

(ii)

in paragraph (1) (as so redesignated)—

(I)

in the first sentence, by inserting pursuant to section 391 after to the Secretary; and

(II)

by striking the remaining sentences; and

(iii)

in paragraph (2) (as so redesignated)—

(I)

in subparagraph (A), by striking this part or part B. and inserting this part, part B, or title V.; and

(II)

by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B);

(7)

in section 318—

(A)

in subsection (b)—

(i)

in paragraph (1)—

(I)

in subparagraph (E), by striking and at the end;

(II)

in subparagraph (F)(ii), by striking part A of;

(III)

in subparagraph (F)(iii), by striking the period at the end and inserting ; and; and

(IV)

by adding at the end the following;

(G)

is an eligible institution under section 312(b).

; and

(ii)

by striking paragraph (7);

(B)

in subsection (d)—

(i)

in paragraph (2)—

(I)

in subparagraph (A), by striking through (12) and inserting through (17) of section 311(b);

(II)

by striking subparagraph (D); and

(III)

by redesignating subparagraph (E) as subparagraph (D); and

(ii)

by striking paragraph (3) and inserting the following:

(3)

Endowment fund

A Predominantly Black Institution seeking to establish or increase an endowment fund shall abide by the requirements in section 311(c).

;

(C)

in subsection (f), by striking all after Secretary the first place such term appears and inserting pursuant to section 391.;

(D)

by striking subsections (g) and (h);

(E)

by redesignating subsection (i) as subsection (g); and

(F)

in subsection (g) (as so redesignated), by striking part A of;

(8)

in section 319—

(A)

in subsection (c)—

(i)

by striking paragraph (2) and inserting the following:

(2)

Examples of authorized activities

Such programs may include—

(A)

the activities described in paragraphs (1) through (17) of section 311(b); and

(B)

other activities proposed in the application submitted pursuant to subsection (d) that—

(i)

contribute to carrying out the purpose of this section; and

(ii)

are approved by the Secretary as part of the review and approval of an application submitted under subsection (d).

; and

(ii)

by adding at the end the following:

(3)

Endowment fund

A Native American-serving, nontribal institution seeking to establish or increase an endowment fund shall abide by the requirements in section 311(c).

; and

(B)

in subsection (d)—

(i)

by striking paragraph (1) and inserting the following:

(1)

Application

A Native American-serving, nontribal institution desiring to receive assistance under this section shall submit an application to the Secretary pursuant to section 391.

;

(ii)

by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and

(iii)

in paragraph (2) (as so redesignated)—

(I)

in subparagraph (A), by striking part A of;

(II)

by striking subparagraph (B); and

(III)

by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively; and

(9)

in section 320—

(A)

in subsection (c)—

(i)

by striking paragraph (2) and inserting the following:

(2)

Examples of authorized activities

Such programs may include—

(A)

the activities described in paragraphs (1) through (17) of section 311(b);

(B)

academic instruction in disciplines in which Asian Americans and Native American Pacific Islanders are underrepresented;

(C)

conducting research and data collection for Asian American and Native American Pacific Islander populations and subpopulations;

(D)

establishing partnerships with community-based organizations serving Asian Americans and Native American Pacific Islanders; and

(E)

other activities proposed in the application submitted pursuant to subsection (d) that—

(i)

contribute to carrying out the purpose of this section; and

(ii)

are approved by the Secretary as part of the review and approval of an application submitted under subsection (d).

; and

(ii)

by adding at the end the following:

(3)

Endowment fund

An Asian American and Native American Pacific Islander-serving institution seeking to establish or increase an endowment fund shall abide by the requirements in section 311(c).

; and

(B)

in subsection (d)—

(i)

by striking paragraph (1) and inserting the following:

(1)

Application

Each Asian American and Native American Pacific Islander-serving institution desiring to receive assistance under this section shall submit an application to the Secretary pursuant to section 391.

;

(ii)

by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and

(iii)

in paragraph (2) (as so redesignated), by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B).

302.

Strengthening historically Black colleges and universities

Part B of title III (20 U.S.C. 1060 et seq.) is amended—

(1)

in section 323—

(A)

by striking subsection (a) and inserting the following :

(a)

Authorized activities

From amounts available under section 399(a)(2) for any fiscal year, the Secretary shall make grants (under section 324) to institutions which have applications approved by the Secretary (under section 325) for any of the following uses:

(1)

The activities described in paragraphs (1) through (17) of section 311(b).

(2)

Academic instruction in disciplines in which Black Americans are underrepresented.

(3)

Initiatives to improve the educational outcomes of African-American males.

(4)

Establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that shall include, as part of such program, preparation for teacher certification.

(5)

Acquisition of real property in connection with the construction, renovation, or addition to or improvement of campus facilities.

(6)

Services necessary for the implementation of projects or activities that are described in the grant application and that are approved, in advance, by the Secretary, except that not more than two percent of the grant amount may be used for this purpose.

(7)

Other activities proposed in the application submitted pursuant to section 325 that—

(A)

contribute to carrying out the purposes of this part; and

(B)

are approved by the Secretary as part of the review and acceptance of such application.

; and

(B)

by striking subsection (b) and inserting the following:

(b)

Endowment fund

An institution seeking to establish or increase an endowment shall abide by the requirements in section 311(c).

;

(2)

in section 325(a), by striking (C), (D), and (E) and inserting (C) through (F);

(3)

in section 326—

(A)

by striking subsection (b) and inserting the following:

(b)

Duration

The Secretary may award a grant to an eligible institution under this part for a period of 5 years. Any funds awarded under this section that are not expended or used for the purposes for which the funds were paid within 10 years following the date on which the grant was awarded, shall be repaid to the Treasury.

;

(B)

by striking subsection (c) and inserting the following:

(c)

Authorized activities

A grant under this section may be used for—

(1)

the activities described in paragraphs (1) through (12), (14) through (15), and (17) of section 311(b);

(2)

scholarships, fellowships, and other financial assistance for needy graduate and professional students to permit the enrollment of the students in and completion of the doctoral degree in medicine, dentistry, pharmacy, veterinary medicine, law, and the doctorate degree in the physical or natural sciences, engineering, mathematics, or other scientific disciplines in which African Americans are underrepresented;

(3)

acquisition of real property that is adjacent to the campus in connection with the construction, renovation, or addition to or improvement of campus facilities;

(4)

services necessary for the implementation of projects or activities that are described in the grant application and that are approved, in advance, by the Secretary, except that not more than two percent of the grant amount may be used for this purpose; and

(5)

other activities proposed in the application submitted under subsection (d) that—

(A)

contribute to carrying out the purposes of this part; and

(B)

are approved by the Secretary as part of the review and acceptance of such application.

;

(C)

in subsection (e)(1)—

(i)

in subparagraph (W), by striking and at the end;

(ii)

in subparagraph (X), by striking the period at the end and inserting ; and;

(iii)

by adding at the end the following:

(Y)

University of the Virgin Islands School of Medicine.

;

(iv)

in each of paragraphs (2) and (3) of subsection (f), by striking (X) and inserting (Y); and

(v)

in subsection (g), by striking 2008 each place such term appears and inserting 2018; and

(4)

in section 327—

(A)

by striking the designation and heading for subsection (a); and

(B)

by striking subsection (b).

303.

Historically Black college and university capital financing

Part D of title III (20 U.S.C. 1066 et seq.) is amended—

(1)

in section 343—

(A)

by striking escrow account each place it appears and inserting bond insurance fund; and

(B)

in subsection (b)—

(i)

in paragraph (1), by striking an and inserting a; and

(ii)

in paragraph (8), in the matter preceding subparagraph (A), by striking an and inserting a;

(2)

in section 345, by striking paragraph (9) and inserting the following:

(9)

may, directly or by grant or contract, provide financial counseling and technical assistance to eligible institutions to prepare the institutions to qualify, apply for, and maintain a capital improvement loan, including a loan under this part; and

; and

(3)

in section 347(c), by striking paragraph (2) and inserting the following:

(2)

Report

On an annual basis, the Advisory Board shall prepare and submit to the authorizing committees a report on the status of the historically Black colleges and universities described in paragraph (1)(A) and an overview of all loans in the capital financing program, including the most recent loans awarded in the fiscal year in which the report is submitted. The report shall include administrative and legislative recommendations, as needed, for addressing the issues related to construction financing facing historically Black colleges and universities.

.

304.

Minority Science and Engineering Improvement Program

Part E of title III (20 U.S.C. 1067 et seq.) is amended—

(1)

in section 353(a)—

(A)

in paragraph (1), by striking 365(6) and inserting 359(6);

(B)

in paragraph (2), by striking 365(7) and inserting 359(7);

(C)

in paragraph (3), by striking 365(8) and inserting 359(8); and

(D)

in paragraph (5), by striking 365(9) and inserting 359(9);

(2)

by striking subpart 2;

(3)

by redesignating subpart 3 as subpart 2 and redesignating sections 361 through 365 as sections 355 through 359, respectively;

(4)

in section 355 (as so redesignated), by striking paragraph (5);

(5)

in section 356(a) (as so redesignated), by striking determined under section 361) and inserting determined under section 355); and

(6)

in section 359(2) (as so redesignated)—

(A)

by inserting American after Black; and

(B)

by striking Hispanic (including and inserting Hispanic American (including.

305.

Strengthening historically Black colleges and universities and other minority-serving institutions

Section 371 (20 U.S.C. 1067q) is amended—

(1)

in subsection (b)(2)(D)(iii), by striking section 311(c) and inserting section 311(b); and

(2)

in subsection (c)(9)(F)(ii), by striking part A of.

306.

General provisions

Part G of title III (20 U.S.C. 1068 et seq.) is amended—

(1)

in section 391(b)—

(A)

in paragraph (1), by striking institutional management and all that follows through the semicolon at the end and inserting institutional management, and use the grant to provide for, and lead to, institutional self-sustainability and growth (including measurable objectives for the institution and the Secretary to use in monitoring the effectiveness of activities under this title);;

(B)

in paragraph (7)—

(i)

by striking subparagraph (C) and redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; and

(ii)

in subparagraph (D) (as so redesignated), strike and at the end;

(C)

by striking paragraph (8) and inserting the following:

(8)

set forth a 5-year plan for improving the assistance provided by the institution; and

; and

(D)

by adding at the end the following:

(9)

submit such enrollment data as may be necessary to demonstrate that the institution is a minority-serving institution.

;

(2)

in section 392—

(A)

in subsection (b)—

(i)

in the subsection heading, after expenditures insert ; completion rates;

(ii)

in paragraph (1), insert or 312(b)(3) after 312(b)(1)(B); and

(iii)

in paragraph (2)—

(I)

in the matter preceding subparagraph (A)—

(aa)

by inserting or 312(b)(3) after 312(b)(1)(B); and

(bb)

by inserting American after Hispanic; and

(II)

in subparagraph (A), by inserting or section 312(b)(3) after 312(b)(1); and

(B)

by striking subsection (c) and inserting the following:

(c)

Waiver authority with respect to institutions located in an area affected by a major disaster

(1)

Waiver authority

Notwithstanding any other provision of law, unless enacted with specific reference to this section, in the case of a major disaster, the Secretary may waive for affected institutions—

(A)

the eligibility data requirements set forth in section 391(d) and section 521(e);

(B)

the allotment requirements under section 324; and

(C)

the use of the funding formula developed pursuant to section 326(f)(3);

(2)

Definitions

In this subsection:

(A)

Affected institution

The term affected institution means an institution of higher education that—

(i)

is—

(I)

a part A institution (which term shall have the meaning given the term eligible institution under section 312(b) or section 502(a)(6)); or

(II)

a part B institution, as such term is defined in section 322(2), or as identified in section 326(e);

(ii)

is located in an area affected by a major disaster; and

(iii)

is able to demonstrate that, as a result of the impact of a major disaster, the institution—

(I)

incurred physical damage;

(II)

has pursued collateral source compensation from insurance, the Federal Emergency Management Agency, and the Small Business Administration, as appropriate; and

(III)

was not able to fully reopen in existing facilities or to fully reopen to the pre-disaster enrollment levels.

(B)

Major disaster

The term major disaster has the meaning given such term in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).

; and

(3)

in section 399, by striking subsection (a) and inserting the following:

(a)

Authorizations

(1)

Part A

(A)

There are authorized to be appropriated to carry out section 316, $27,599,000 for each of fiscal years 2019 through 2024.

(B)

There are authorized to be appropriated to carry out section 317, $13,802,000 for each of fiscal years 2019 through 2024.

(C)

There are authorized to be appropriated to carry out section 318, $9,942,000 for each of fiscal years 2019 through 2024.

(D)

There are authorized to be appropriated to carry out section 319, $3,348,000 for each of fiscal years 2019 through 2024.

(E)

There are authorized to be appropriated to carry out section 320, $3,348,000 for each of fiscal years 2019 through 2024.

(2)

Part B

(A)

There are authorized to be appropriated to carry out part B (other than section 326), $244,694,000 for each of fiscal years 2019 through 2024.

(B)

There are authorized to be appropriated to carry out section 326, $63,281,000 for each of fiscal years 2019 through 2024.

(3)

Part D

There are authorized to be appropriated to carry out part D, $20,484,000 for each of fiscal years 2019 through 2024. Of the amount authorized, 1.63 percent shall be reserved for administrative expenses.

(4)

Part E

There are authorized to be appropriated to carry out subpart 1 of part E, $9,648,000 for each of fiscal years 2019 through 2024.

.

IV

STUDENT ASSISTANCE

A

Grants to Students in Attendance at Institutions of Higher Education

401.

Federal Pell Grants

(a)

Reauthorization

Section 401(a) (20 U.S.C. 1070a(a)) is amended—

(1)

by striking fiscal year 2017 and inserting fiscal year 2024; and

(2)

by inserting an eligible program at after attendance at.

(b)

Federal Pell Grant bonus

(1)

Amendments

Section 401(b) (20 U.S.C. 1070a(b)) is amended—

(A)

in paragraph (7)(A)(iii)—

(i)

by inserting and paragraph (9) after this paragraph; and

(ii)

by inserting before the semicolon at the end the following: and to provide the additional amount required by paragraph (9); and

(B)

by adding at the end the following:

(9)

Federal Pell Grant bonus

(A)

In general

Notwithstanding any other provision of this subsection and from the amounts made available pursuant to paragraph (7)(A)(iii) for the purposes of this paragraph, an eligible student who is receiving a Federal Pell Grant for an award year shall receive an amount in addition to such Federal Pell Grant for each payment period of such award year for which the student—

(i)

is receiving such Federal Pell Grant as long as the amount of such Federal Pell Grant does not exceed the maximum amount of a Federal Pell Grant award determined under paragraph (2)(A) for such award year; and

(ii)

is carrying a work load that—

(I)

is greater than the normal full-time work load for the course of study the student is pursuing, as determined by the institution of higher education; and

(II)

will lead to the completion of not less than 30 credit hours (or the equivalent coursework) upon the completion of the final payment period for which the student is receiving the Federal Pell Grant described in clause (i).

(B)

Amount of bonus

The amount provided to an eligible student under subparagraph (A) for an award year may not exceed $300, which shall be equally divided among each payment period of such award year described in clauses (i) and (ii) of subparagraph (A).

.

(2)

Effective date

The amendments made by paragraph (1) shall take effect with respect to award year 2018–2019 and each succeeding award year.

(c)

Period of Eligibility for Grants

Section 401(c) (20 U.S.C. 1070a(c)) is amended by adding at the end the following:

(6)
(A)

The Secretary shall issue to each student receiving a Federal Pell Grant, an annual status report which shall—

(i)

inform the student of the remaining period during which the student may receive Federal Pell Grants in accordance with paragraph (5), and provide access to a calculator to assist the student in making such determination;

(ii)

include an estimate of the Federal Pell Grant amounts which may be awarded for such remaining period based on the student’s award amount determined under subsection (b)(2)(A) for the most recent award year;

(iii)

explain how the estimate was calculated and any assumptions underlying the estimate;

(iv)

explain that the estimate may be affected if there is a change—

(I)

in the student's financial circumstances; or

(II)

the availability of Federal funding; and

(v)

describe how the remaining period during which the student may receive Federal Pell Grants will be affected by whether the student is enrolled as a full-time student.

(B)

Nothing in this paragraph shall be construed to prohibit an institution from offering additional counseling to a student with respect to Federal Pell Grants, but such counseling shall not delay or impede disbursement of a Federal Pell Grant award to the student.

.

(d)

Distribution of grants to students

Section 401(e) (20 U.S.C. 1070a(e)) is amended by striking the first sentence and inserting Payments under this section shall be made in the same manner as disbursements under section 465(a)..

(e)

Institutional ineligibility based on default rates

Section 401(j) of such Act (20 U.S.C. 1070a(j)) is amended by adding at the end the following:

(3)

Sunset

The provisions of this subsection shall not apply after the transition period described in section 481B(e)(3).

.

(f)

Prevention of fraud

Section 401 (20 U.S.C. 1070a) is amended by adding at the end the following:

(k)

Prevention of fraud

(1)

In general

No Federal Pell Grant shall be awarded under this subpart to any individual who, with respect to not less than any 3 payment periods, for each such payment period—

(A)

received at least a portion of a Federal Pell Grant award; and

(B)

did not complete any credit hours (or credit hour equivalencies) for which the individual was enrolled.

(2)

Waiver

The financial aid administrator at an institution may waive the requirement of paragraph (1), if the financial aid administrator—

(A)

determines that the student was unable to complete the credit hours described in paragraph (1)(B) due to circumstances beyond the student’s control; and

(B)

makes and documents such a determination on an individual basis.

(3)

Circumstances described

For purposes of paragraph (2), circumstances beyond the student’s control—

(A)

may include the student withdrawing from classes due to illness; and

(B)

shall not include withdrawing to avoid a particular grade.

.

(g)

Report on costs of Federal Pell Grant program

Section 401 (20 U.S.C. 1070a) is further amended, as amended by subsections (a) through (f), by adding at the end the following:

(l)

Report on costs of Federal Pell Grant program

Not later than October 31 of each year, the Secretary shall prepare and submit a report to the authorizing committees that includes the following information with respect to spending for the Federal Pell Grant program for the preceding fiscal year:

(1)

The total obligations and expenditures for the program for such fiscal year.

(2)

A comparison of the total obligations and expenditures for the program for such fiscal year—

(A)

to the most recently available Congressional Budget Office baseline for the program; and

(B)

in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for the program included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.

(3)

The total obligations and expenditures for the maximum Federal Pell Grant for which a student is eligible, as specified in the last enacted appropriation Act applicable to such fiscal year.

(4)

A comparison of the total obligations and expenditures for the maximum Federal Pell Grant for which a student is eligible, as specified in the last enacted appropriation Act applicable to such fiscal year—

(A)

to the most recently available Congressional Budget Office baseline for such maximum Federal Pell Grant; and

(B)

in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for such maximum Federal Pell Grant included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.

(5)

The total mandatory obligations and expenditures for the amount of the increase in such maximum Federal Pell Grant required by subsection (b)(7)(B) for such fiscal year.

(6)

A comparison of the total mandatory obligations and expenditures for the amount of the increase in such maximum Federal Pell Grant required by subsection (b)(7)(B)—

(A)

to the most recently available Congressional Budget Office baseline for the increase; and

(B)

in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for the increase included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.

(7)

The total mandatory obligations and expenditures for the Federal Pell Grant Bonus required by subsection (b)(9) for such fiscal year.

(8)

A comparison of the total mandatory obligations and expenditures for the Federal Pell Grant Bonus required by subsection (b)(9) for such fiscal year—

(A)

to the most recently available Congressional Budget Office baseline for such bonus; and

(B)

in the case in which such fiscal year is fiscal year 2019, 2020, 2021, 2022, 2023, or 2024, to the Congressional Budget Office cost estimate for such bonus included in the report of the Committee on Education and the Workforce of the House of Representatives accompanying the PROSPER Act, as approved by the Committee.

.

402.

Federal TRIO programs

(a)

Program authority; authorization of appropriations

Section 402A (20 U.S.C. 1070a–11) is amended—

(1)

in subsection (c)—

(A)

by amending subparagraph (A) of paragraph (2) to read as follows:

(A)

Accountability for outcomes

In making grants under this chapter, the Secretary shall comply with the following requirements:

(i)

The Secretary shall consider each applicant's prior success in achieving high quality service delivery, as determined under subsection (f), under the particular program for which funds are sought. The level of consideration given the factor of prior success in achieving high quality service delivery shall not vary from the level of consideration given such factor during fiscal years 1994 through 1997, except that grants made under section 402H shall not be given such consideration.

(ii)

The Secretary shall not give points for prior success in achieving high quality service delivery to any current grantee that, during the then most recent period for which funds were provided, did not meet or exceed two or more objectives established in the eligible entity’s application based on the performance measures described in subsection (f).

(iii)

From the amounts awarded under subsection (g) for a program under this chapter (other than a program under section 402G and 402H) for any fiscal year in which the Secretary conducts a competition for the award of grants or contracts under such programs, the Secretary shall reserve not less than 10 percent of such available amount to award grants or contracts to applicants who have not previously received a grant or contract under this chapter. If the Secretary determines that there are an insufficient number of qualified applicants to use the full amount reserved under the preceding sentence, the Secretary shall use the remainder of such amount to award grants or contracts to applicants who have previously received a grant or contract under this chapter.

;

(B)

in paragraph (3)—

(i)

in subparagraph (A)—

(I)

by striking as provided in subparagraph (B) and inserting as provided in subparagraph (C);

(II)

by striking experience and inserting success in achieving high quality service delivery;

(ii)

by redesignating subparagraph (B) as subparagraph (C); and

(iii)

by inserting after subparagraph (A) the following new subparagraph:

(B)

To ensure that congressional priorities in conducting competitions for grants and contracts under this chapter are implemented, the Secretary shall not impose additional criteria for the prioritization of applications for such grants or contracts (including additional competitive, absolute, or other criteria) beyond the criteria described in this chapter.

;

(C)

in paragraph (6)—

(i)

by striking the period at the end of the second sentence and inserting , as long as the program is serving a different population or a different campus.;

(ii)

by striking the programs authorized by and inserting sections 402B, 402C, 402D, and 402F of;

(iii)

by striking The Secretary shall encourage and inserting the following:

(A)

The Secretary shall encourage

;

(iv)

by striking The Secretary shall permit and inserting the following:

(B)

The Secretary shall permit

;

(D)

in paragraph (7), by striking 8 months each place it appears and inserting 90 days;

(E)

in paragraph (8)—

(i)

in subparagraph (A)—

(I)

in the matter preceding clause (i), by striking Not later than 180 days after the date of enactment of the Higher Education Opportunity Act, and inserting Not later than 90 days before the commencement of each competition for a grant under this chapter,;

(II)

in clause (iii), by striking prior experience points for high quality service delivery are awarded and inserting application scores are adjusted for prior success in achieving high quality service delivery; and

(III)

in clause (v), by striking prior experience points for and inserting the adjustment in scores for prior success in achieving;

(ii)

by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B); and

(iii)

in subparagraph (B), as so redesignated—

(I)

in clause (iii)—

(aa)

in the matter preceding subclause (I), by striking prior experience points for and inserting points for prior success in achieving; and

(bb)

in subclause (II), by striking prior experience points and inserting points for prior success in achieving high quality service delivery; and

(II)

in clause (vi), by inserting before the period at the end the following: from funds reserved under subsection (g); and

(F)

by adding at the end the following:

(9)

Matching requirement

(A)

In general

The Secretary shall not approve an application submitted under section 402B, 402C, 402D, 402E, or 402F unless such application—

(i)

provides that the eligible entity will provide, from State, local, institutional, or private funds, not less than 20 percent of the cost of the program, which matching funds may be provided in cash or in kind and may be accrued over the full duration of the grant award period, except that the eligible entity shall make substantial progress towards meeting the matching requirement in each year of the grant award period;

(ii)

specifies the methods by which matching funds will be paid; and

(iii)

includes provisions designed to ensure that funds provided under this chapter shall supplement and not supplant funds expended for existing programs.

(B)

Special rule

Notwithstanding the matching requirement described in subparagraph (A), the Secretary may by regulation modify the percentage requirement described in subparagraph (A). The Secretary may approve an eligible entity's request for a reduced match percentage—

(i)

at the time of application if the eligible entity demonstrates significant economic hardship that precludes the eligible entity from meeting the matching requirement; or

(ii)

in response to a petition by an eligible entity subsequent to a grant award under section 402B, 402C, 402D, 402E, or 402F if the eligible entity demonstrates that the matching funds described in its application are no longer available and the eligible entity has exhausted all revenues for replacing such matching funds.

;

(2)

in subsection (d)(3), by adding at the end the following new sentence: In addition, the Secretary shall host at least one virtual, interactive education session using telecommunications technology to ensure that any interested applicants have access to technical assistance.;

(3)

in subsection (e)—

(A)

in paragraph (1)—

(i)

in subparagraph (C), by striking or at the end;

(ii)

in subparagraph (D), by striking the period at the end and inserting ; or; and

(iii)

by adding at the end the following new subparagraph:

(E)

documentation that the student has been determined to be eligible for a Federal Pell Grant under section 401.

; and

(B)

in paragraph (2)—

(i)

in subparagraph (C), by striking or at the end;

(ii)

in subparagraph (D), by striking the period at the end and inserting ; or; and

(iii)

by adding at the end the following new subparagraph:

(E)

documentation that the student has been determined to be eligible for a Federal Pell Grant under section 401.

;

(4)

in subsection (f)—

(A)

in the heading of paragraph (1), by striking prior experience and inserting accountability for outcomes;

(B)

in paragraph (1) by striking experience of and inserting success in achieving;

(C)

in paragraph (3)—

(i)

in subparagraph (A)—

(I)

in clause (iv) by striking rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program and inserting secondary school program of study that will prepare such students to enter postsecondary education without the need for remedial education;

(II)

by redesignating clauses (v) and (vi) as clauses (vi) and (vii), respectively; and

(III)

by inserting after clause (iv) the following new clause:

(v)

the completion of financial aid applications, including the Free Application for Federal Student Aid described in section 483(a) and college admission applications;

;

(ii)

in subparagraph (B)—

(I)

by redesignating clauses (i), (ii), (iii), (iv), (v), (vi), (vii) as subclauses (I), (II), (III), (IV), (VII), (IX), and (X), respectively;

(II)

by inserting after subclause (IV), as so redesignated, the following:

(V)

the reentry into secondary school of such students;

(VI)

the enrollment of such students into a general educational development (commonly known as a GED) program;

.

(III)

in subclause (VII), as so redesignated, by striking rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program and inserting secondary school program of study that will prepare such students to enter postsecondary education without the need for remedial education;

(IV)

by inserting after subclause (VII), as so redesignated, the following new subclause:

(VIII)

the completion of financial aid applications, including the Free Application for Federal Student Aid described in section 483(a) and college admission applications;

;

(V)

by striking (B) For programs authorized under section 402C, and inserting (B)(i) For programs authorized under section 402C, except in the case of projects that specifically target veterans,; and

(VI)

by adding at the end the following new clauses:

(ii)

For programs authorized under section 402C that specifically target veterans, the extent to which the eligible entity met or exceeded the entity’s objectives for such program with respect to—

(I)

the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period;

(II)

such students’ academic performance, as measured by standardized tests;

(III)

the retention and completion of participants in the project;

(IV)

the provision of assistance to students served by the program in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a) and college admission applications;

(V)

the enrollment of such students in an institution of higher education; and

(VI)

to the extent practicable, the postsecondary education completion rate of such students.

;

(iii)

in subparagraph (C)(ii)—

(I)

in subclause (I), by striking in which such students were enrolled and inserting within six years of the initial enrollment of such students in the program; and

(II)

in subclause (II);

(aa)

in the matter preceding item (aa), by striking offer a baccalaureate degree and inserting primarily offer baccalaureate degrees; and

(bb)

in item (aa), by striking students; and and inserting students within 4 years of the initial enrollment of such students in the program; or;

(iv)

in subparagraph (D)—

(I)

in clause (iii), by striking ; and and inserting within two years of receiving a baccalaureate degree;;

(II)

in clause (iv), by striking study and and all that follows through the period and inserting study; and; and

(III)

by adding at the end the following new clause:

(v)

the attainment of doctoral degrees by former program participants within 10 years of receiving a baccalaureate degree.

; and

(v)

in subparagraph (E)(ii), by inserting , or re-enrollment, after enrollment;

(5)

in subsection (g)—

(A)

in the first sentence, by striking $900,000,000 for fiscal year 2009 and such sums as may be necessary for and inserting $900,000,000 for fiscal year 2019 and;

(B)

in the second sentence—

(i)

by striking no more than ½ of 1 and inserting not more than 1;

(ii)

by striking and to provide technical and inserting to provide technical; and

(iii)

by inserting before the period at the end the following: , and to support applications funded under the process outlined in subsection (c)(8)(B); and

(C)

by striking the last sentence; and

(6)

in subsection (h)—

(A)

by striking (5) Veteran eligibility.—No veteran and inserting the following:

(i)

Veteran eligibility

(1) No Veteran

;

(B)

in paragraph (6), by striking of paragraph (5) and inserting of paragraph (1);

(C)

by striking (6) Waiver.—The Secretary and inserting the following:

(2)

The Secretary

.

(b)

Talent search

Section 402B (20 U.S.C. 1070a–12) is amended—

(1)

in subsection (a)—

(A)

in paragraph (2), by striking and at the end;

(B)

by redesignating paragraph (3) as paragraph (4); and

(C)

by inserting after paragraph (2) the following new paragraph:

(3)

to advise such youths on the postsecondary institution selection process, including consideration of the financial aid awards offered and the potential loan burden required; and

;

(2)

in subsection (b), by striking paragraph (6) and inserting the following:

(6)

connections to education or counseling services designed to—

(A)

improve the financial literacy and economic literacy of students or the students’ parents in order to aid them in making informed decisions about how to best finance their postsecondary education; and

(B)

assist students and families regarding career choice.

;

(3)

in subsection (c)(2), by striking career and inserting academic; and

(4)

in subsection (d)—

(A)

by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively;

(B)

by inserting after paragraph (1) the following new paragraph:

(2)

require an assurance that the remaining youths participating in the project proposed to be carried out in any application be low-income individuals, first generation college students, or students who have a high risk for academic failure;

;

(C)

in paragraph (4), as so redesignated—

(i)

by inserting , section 402C, after under this section; and

(ii)

by striking and at the end;

(D)

in paragraph (5), as so redesignated, by striking the period at the end and inserting ; and; and

(E)

by adding at the end the following:

(6)

require the grantee to maintain, to the extent practicable, a record of any services participants receive during the project year from another program under this chapter or other federally funded programs serving similar populations to minimize the duplication of services.

.

(c)

Upward bound

Section 402C (20 U.S.C. 1070a–13) is amended—

(1)

in subsection (b)—

(A)

in paragraph (4), by adding and at the end; and

(B)

by striking paragraphs (5) and (6) and inserting the following:

(5)

education or counseling services designed to—

(A)

improve the financial literacy and economic literacy of students or the students’ parents in order to aid them in making informed decisions about how to best finance their postsecondary education; and

(B)

assist students and their families regarding career choice.

;

(2)

in subsection (d)—

(A)

in paragraph (1), by striking youth and inserting participants;

(B)

in paragraph (2), by striking youth participating in the project and inserting project participants; and

(C)

in paragraph (5), by striking youth participating in the project and inserting project participants;

(3)

in subsection (e)—

(A)

in paragraph (4), by striking and at the end;

(B)

by redesignating paragraph (5) as paragraph (6); and

(C)

by inserting after paragraph (4) the following:

(5)

require an assurance that individuals participating in the project proposed in any application do not have access to services from another project funded under this section, section 402B, or section 402F;

;

(D)

in paragraph (6), as so redesignated, by striking the period at the end and inserting ; and; and

(E)

by adding at the end the following:

(6)

for purposes of minimizing the duplication of services, require that the grantee maintain, to the extent practicable, a record of any services received by participants during the program year from another program funded under this chapter, or any other Federally funded program that serves populations similar to the populations served by programs under this chapter.

; and

(4)

by striking subsection (g) and redesignating subsection (h) as subsection (g).

(d)

Student support services

Section 402D (20 U.S.C. 1070a–14) is amended—

(1)

in subsection (a)(3), by inserting low-income and first generation college students, including after success of; and

(2)

in subsection (b)(4)—

(A)

by striking , including financial and inserting

, including—

(A)

financial

;

(B)

by adding at the end the following:

(B)

basic personal income, household money management, and financial planning skills; and

(C)

basic economic decisionmaking skills;

; and

(C)

in subsection (e)—

(i)

in paragraph (5), by striking and at the end;

(ii)

by redesignating paragraph (6) as paragraph (7);

(iii)

by inserting after paragraph (5) the following:

(6)

require the grantee to maintain, to the extent practicable, a record of any services participants receive during the project year from another program under this chapter or other federally funded programs serving similar populations to minimize the duplication of services; and

.

(e)

Postbaccalaureate Achievement Program Authority

Section 402E (20 U.S.C. 1070a–15) is amended—

(1)

in subsection (b)(2), by striking summer internships and inserting internships and faculty-led research experiences; and

(2)

in subsection (d)—

(A)

in paragraph (3), by striking and at the end;

(B)

in paragraph (4)—

(i)

by striking summer;

(ii)

by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(5)

the grantee to maintain, to the extent practicable, a record of any services participants receive during the project year from another program under this chapter or other federally funded program serving similar populations to minimize the duplication of services.

; and

(3)

in subsection (g), by striking 2009 through 2014 and inserting 2019 through 2024.

(f)

Educational opportunity centers

Section 402F (20 U.S.C. 1070a–16) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by inserting or re-enter after pursue; and

(B)

in paragraph (3), by striking of students and inserting of such persons;

(2)

in subsection (b)(5), by striking students;and inserting the following:

students, including—

(A)

financial planning for postsecondary education;

(B)

basic personal income, household money management, and financial planning skills; and

(C)

basic economic decisionmaking skills;

; and

(3)

in subsection (c)—

(A)

by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and

(B)

by inserting after paragraph (1) the following new paragraph:

(2)

require an assurance that the remaining persons participating in the project proposed to be carried out under any application be low-income individuals or first generation college students;

;

(C)

in paragraph (3), as so redesignated, by striking and at the end;

(D)

in paragraph (4), as so redesignated, by striking the period at the end and inserting ; and; and

(E)

by adding at the end the following:

(5)

require the grantee to maintain, to the extent practicable, a record of any services participants receive during the project year from another program under this chapter or other federally funded program serving similar populations to minimize the duplication of services.

.

(g)

Staff development activities

Section 402G(b) (20 U.S.C. 1070a–17(b)) is amended—

(1)

in the matter preceding paragraph (1)—

(A)

by inserting webinars and online classes, after seminars, workshops,; and

(B)

by striking directors and inserting staff; and

(2)

in paragraph (3), by inserting and innovative after model.

(h)

Reports, evaluations, and grants for project improvement and dissemination

Subsection (b) of section 402H (20 U.S.C. 1070a–18) is amended to read as follows:

(b)

Evaluations

(1)

In general

For the purpose of improving the effectiveness of the programs assisted under this chapter, the Secretary shall make grants to or enter into contracts with one or more organizations to—

(A)

evaluate the effectiveness of the programs assisted under this chapter; and

(B)

disseminate information on the impact of the programs in increasing the education level of participants, as well as other appropriate measures.

(2)

Issues to be evaluated

The evaluations described in paragraph (1) shall measure the effectiveness of programs funded under this chapter in—

(A)

meeting or exceeding the stated objectives regarding the outcome criteria under subsection (f) of section 402A;

(B)

enhancing the access of low-income individuals and first-generation college students to postsecondary education;

(C)

preparing individuals for postsecondary education;

(D)

comparing the level of education completed by students who participate in the programs funded under this chapter with the level of education completed by students of similar backgrounds who do not participate in such programs;

(E)

comparing the retention rates, dropout rates, graduation rates, and college admission and completion rates of students who participate in the programs funded under this chapter with the rates of students of similar backgrounds who do not participate in such programs; and

(F)

such other issues as the Secretary considers appropriate for inclusion in the evaluation.

(3)

Program methods

Such evaluations shall also investigate the effectiveness of alternative and innovative methods within programs funded under this chapter of increasing access to, and retention of, students in postsecondary education.

(4)

Results

The Secretary shall submit to the authorizing committees—

(A)

an interim report on the progress and preliminary results of the evaluation of each program funded under this chapter not later than 2 years following the date of enactment of the PROSPER Act; and

(B)

a final report not later than 3 years following the date of enactment of such Act.

(5)

Public Availability

All reports and underlying data gathered pursuant to this subsection shall be made available to the public upon request, in a timely manner following submission of the applicable reports under this subsection, except that any personally identifiable information with respect to a student participating in a program or project assisted under this chapter shall not be disclosed or made available to the public.

.

(i)

IMPACT grants

Part A of title IV (20 U.S.C. 1070 et seq.) is amended by inserting after section 402H (20 U.S.C. 1070a–28) the following:

402I.

IMPACT grants

(a)

In general

From funds reserved under subsection (e), the Secretary shall make grants to improve postsecondary access and completion rates for qualified individuals from disadvantaged backgrounds. These grants shall be known as innovative measures promoting postsecondary access and completion grants or IMPACT Grants and allow eligible entities to—

(1)

create, develop, implement, replicate, or take to scale evidence-based, field-initiated innovations, including through pay-for-success initiatives, to serve qualified individuals from disadvantaged backgrounds and improve student outcomes; and

(2)

rigorously evaluate such innovations, in accordance with subsection (d).

(b)

Description of grants

The grants described in subsection (a) shall include—

(1)

early-phase grants to fund the development, implementation, and feasibility testing of a program, which prior research suggests has a promise, for the purpose of determining whether the program can successfully improve postsecondary access and completion rates;

(2)

mid-phase grants to fund implementation and a rigorous evaluation of a program that has been successfully implemented under an early-phase grant described in paragraph (1); and

(3)

expansion grants to fund implementation and a rigorous replication evaluation of a program that has been found to produce sizable, important impacts under a mid-phase grant described in paragraph (2) for the purposes of—

(A)

determining whether such outcomes can be successfully reproduced and sustained over time; and

(B)

identifying the conditions in which the project is most effective.

(c)

Requirements for Approval of Applications

To receive a grant under this section, an eligible entity shall submit an application to the Secretary at such time, and in such manner as the Secretary may require, which shall include—

(1)

an assurance that not less than two-thirds of the individuals who will participate in the program proposed to be carried out with the grant will be—

(A)

low-income individuals who are first generation college students; or

(B)

individuals with disabilities;

(2)

an assurance that any other individuals (not described in paragraph (1)) who will participate in such proposed program will be—

(A)

low-income individuals;

(B)

first generation college students; or

(C)

individuals with disabilities;

(3)

a detailed description of the proposed program, including how such program will directly benefit students;

(4)

the number of projected students to be served by the program;

(5)

how the program will be evaluated; and

(6)

an assurance that the individuals participating in the project proposed are individuals who do not have access to services from another programs funded under this section.

(d)

Evaluation

Each eligible entity receiving a grant under this section shall conduct an independent evaluation of the effectiveness of the program carried out with such grant and shall submit to the Secretary, on an annual basis, a report that includes—

(1)

a description of how funds received under this section were used;

(2)

the number of students served by the project carried out under this section; and

(3)

a quantitative analysis of the effectiveness of the project.

(e)

Funding

From amounts appropriated under section 402A(g), the Secretary shall reserve not less than 10 percent of such funds to carry out this section.

.

403.

Gaining early awareness and readiness for undergraduate programs

(a)

Early intervention and college awareness program

Section 404A (20 U.S.C. 1070a–21) is amended—

(1)

in subsection (a)(1), by striking academic support and inserting academic support for college readiness;

(2)

in subsection (b)—

(A)

in paragraph (1), by inserting new before awards; and

(B)

in paragraph (3)—

(i)

by amending subparagraph (A) to read as follows:

(A)

give priority to eligible entities that have a prior, demonstrated commitment to early intervention leading to college access and readiness through collaboration and replication of successful strategies; and

; and

(ii)

in subparagraph (B), by striking the Higher Education Opportunity Act and inserting the PROSPER Act; and

(C)

by adding at the end the following:

(4)

Multiple award prohibition

Eligible entities described in subsection (c)(1) that receive a grant under this chapter shall not be eligible to receive an additional grant under this chapter until after the date on which the initial grant period expires.

; and

(3)

in subsection (c)(2)(B), by striking institutions or agencies sponsoring programs authorized under subpart 4,.

(b)

Applications

Section 404C (20 U.S.C. 1070a–23) is amended—

(1)

in subsection (a)—

(A)

in paragraph (2)—

(i)

in the matter preceding subparagraph (A)—

(I)

by striking , contain or be accompanied by such information or assurances,; and

(II)

by striking , at a minimum;

(ii)

by amending subparagraph (B) to read as follows:

(B)

describe, in the case of an eligible entity described in section 404A(c)(2) that chooses to provide scholarships, or an eligible entity described in section 404A(c)(1)—

(i)

the eligible entity’s plan to establish or maintain a financial assistance program in accordance with the requirements of section 404E, including any eligibility criteria other than the criteria described in section 404E(g), such as—

(I)

demonstrating financial need;

(II)

meeting and maintaining satisfactory academic progress; and

(III)

other criteria aligned with State and local goals to increase postsecondary readiness, access, and completion; and

(ii)

how the eligible entity will meet the other requirements of section 404E;

;

(iii)

by striking subparagraph (H); and

(iv)

by redesignating subparagraphs (I) and (J) as subparagraphs (H) and (I), respectively; and

(2)

in subsection (b), by striking paragraph (2) and inserting the following:

(2)

Special rule

Notwithstanding the matching requirement described in paragraph (1)(A), the Secretary may—

(A)

at the time of application—

(i)

approve a Partnership applicant’s request for a waiver of up to 75 percent of the matching requirement for up to two years if the applicant demonstrates in its application a significant economic hardship that stems from a specific, exceptional, or uncontrollable event, such as a natural disaster, that has a devastating effect on the members of the Partnership and the community in which the project would operate;

(ii)
(I)

approve a Partnership applicant’s request to waive up to 50 percent of the matching requirement for up to two years if the applicant demonstrates in its application a pre-existing and an on-going significant economic hardship that precludes the applicant from meeting its matching requirement; and

(II)

provide tentative approval of an applicant’s request for a waiver under subclause (I) for all remaining years of the project period;

(iii)

approve a Partnership applicant’s request in its application to match its contributions to its scholarship fund, established under section 404E, on the basis of two non-Federal dollars for every one dollar of Federal funds provided under this chapter; or

(iv)

approve a request by a Partnership applicant that has three or fewer institutions of higher education as members to waive up to 70 percent of the matching requirement if the Partnership applicant includes—

(I)

a fiscal agent that is eligible to receive funds under title V, or part B of title III, or section 316 or 317, or a local educational agency;

(II)

only participating schools with a 7th grade cohort in which at least 75 percent of the students are eligible for free or reduced-price lunch under the Richard B. Russell National School Lunch Act; and

(III)

only local educational agencies in which at least 50 percent of the students enrolled are eligible for free or reduced-price lunch under the Richard B. Russell National School Lunch Act; and

(B)

after a grant is awarded, approve a Partnership grantee’s written request for a waiver of up to——

(i)

50 percent of the matching requirement for up to two years if the grantee demonstrates that—

(I)

the matching contributions described for those two years in the grantee’s approved application are no longer available; and

(II)

the grantee has exhausted all funds and sources of potential contributions for replacing the matching funds; or

(ii)

75 percent of the matching requirement for up to two years if the grantee demonstrates that matching contributions from the original application are no longer available due to an uncontrollable event, such as a natural disaster, that has a devastating economic effect on members of the Partnership and the community in which the project would operate.

(3)

Additional terms

(A)

On-going economic hardship

In determining whether a Partnership applicant is experiencing an on-going economic hardship that is significant enough to justify a waiver under subparagraphs (A)(i) and (A)(ii)(I) of paragraph (2), the Secretary may consider documentation of the following:

(i)

Severe distress in the local economy of the community to be served by the grant (e.g., there are few employers in the local area, large employers have left the local area, or significant reductions in employment in the local area).

(ii)

Local unemployment rates that are higher than the national average.

(iii)

Low or decreasing revenues for State and County governments in the area to be served by the grant.

(iv)

Significant reductions in the budgets of institutions of higher education that are participating in the grant.

(v)

Other data that reflect a significant economic hardship for the geographical area served by the applicant.

(B)

Exhaustion of funds

In determining whether a Partnership grantee has exhausted all funds and sources of potential contributions for replacing matching funds under paragraph (2)(B), the secretary may consider the grantee’s documentation of key factors that have had a direct impact on the grantee such as the following:

(i)

A reduction of revenues from State government, County government, or the local educational agency.

(ii)

An increase in local unemployment rates.

(iii)

Significant reductions in the operating budgets of institutions of higher education that are participating in the grant.

(iv)

A reduction of business activity in the local area (e.g., large employers have left the local area).

(v)

Other data that reflect a significant decrease in resources available to the grantee in the local geographical area served by the grantee.

(C)

Renewal of waiver

A Partnership applicant that receives a tentative approval of a waiver under subparagraph (A)(ii)(II) of paragraph (2) for more than two years under this paragraph must submit to the Secretary every two years by such time as the Secretary may direct documentation that demonstrates that—

(i)

the significant economic hardship upon which the waiver was granted still exists; and

(ii)

the grantee tried diligently, but unsuccessfully, to obtain contributions needed to meet the matching requirement.

(D)

Multiple waivers

If a grantee has received one or more waivers under paragraph (2), the grantee may request an additional waiver of the matching requirement under this subsection not earlier than 60 days before the expiration of the grantee’s existing waiver.

.

(c)

Activities

Section 404D (20 U.S.C. 1070a–24) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by striking financial aid for and inserting financial aid, including loans, grants, scholarships, and institutional aid for;

(B)

in paragraph (2) by striking rigorous and challenging curricula and coursework, in order to and inserting curricula and coursework designed to;

(C)

by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively;

(D)

by inserting after paragraph (2) the following:

(3)

Providing information to students and families about the advantages of obtaining a postsecondary education.

(4)

Providing tutors and mentors, who may include adults or former participants of a program under this chapter, for use by eligible students in need.

; and

(E)

in paragraph (5), as so redesignated, by striking Improving and inserting Providing supportive services to improve; and

(2)

in subsection (b)—

(A)

by striking paragraph (1);

(B)

by redesignating paragraphs (2) through (15) as paragraphs (1) through (14), respectively;

(C)

in paragraph (3), as so redesignated, by striking rigorous each place it appears; and

(D)

in paragraph (9), as so redesignated—

(i)

by redesignating subparagraphs (E) through (K) as subparagraphs (F) through (L), respectively; and

(ii)

by inserting after subparagraph (D) the following:

(E)

providing counseling or referral services to address the behavioral, social-emotional, and mental health needs of at-risk students;

;

(iii)

in subparagraph (I), as so redesignated, by striking skills assessments and inserting skills, cognitive, non-cognitive, and credit-by-examination assessments;

(iv)

in subparagraph (K), as so redesignated, by striking and at the end;

(v)

in subparagraph (L), as so redesignated, by striking the period at the end and inserting ; and; and

(vi)

by adding at the end the following:

(M)

capacity building activities that create college-going cultures in participating schools and local education agencies.

;

(E)

by adding at the end the following:

(15)

Creating or expanding drop-out recovery programs that allow individuals who drop out of school to complete a regular secondary school diploma and begin college-level work.

; and

(F)

in subsection (c)—

(i)

in paragraph (3), by inserting and technical assistance after administrative support; and

(ii)

by striking paragraph (9); and

(3)

in subsection (e), by striking institutions and agencies sponsoring programs authorized under subpart 4,.

(d)

Scholarship requirements

Section 404E (20 U.S.C. 1070a–25) is amended—

(1)

in subsection (a)(1), by inserting described in section 404C(a)(2)(B)(i) after financial assistance program; and

(2)

in subsection (e)(1), by striking an amount and all that follows through the period at the end and inserting the following: an estimated amount that is based on the requirements of the financial assistance program of the eligible entity described in section 404C(a)(2)(B)(i).

(e)

Evaluation and report

Section 404G(b) (20 U.S.C. 1070a–27(b)) is amended—

(1)

in paragraph (1), by striking and at the end;

(2)

in paragraph (2), by striking the period at the end and inserting ; and

(3)

by adding after paragraph (2) the following:

(3)

include the following metrics:

(A)

the number of students completing the Free Application for Federal Student Aid;

(B)

the enrollment of participating students in curricula and coursework designed to reduce the need for remedial coursework at the postsecondary level;

(C)

if applicable, the number of students receiving a scholarship;

(D)

the graduation rate of participating students from high school;

(E)

the enrollment of participating students into postsecondary education; and

(F)

such other information as the Secretary may require.

.

(f)

Authorization of appropriations

Section 404H (20 U.S.C. 1070a–28) is amended by striking $400,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years and inserting $339,754,000 for fiscal year 2019 and each of the five succeeding fiscal years.

404.

Special programs for students whose families are engaged in migrant and seasonal farmwork

Section 418A(i) (20 U.S.C. 1070d—2(i)) is amended by striking $75,000,000 and all that follows through the period at the end and inserting $44,623,000 for each of fiscal years 2019 through 2024..

405.

Child care access means parents in school

Section 419N (20 U.S.C. 1070e) is amended—

(1)

in the heading of paragraph (6) of subsection (b), by striking Construction and inserting Rule of construction;

(2)

in subsection (c)—

(A)

in paragraph (4), by striking assisted and inserting funded;

(B)

in paragraph (5)—

(i)

by striking resources, including technical expertise and inserting resources, including non-Federal resources, technical expertise,; and

(ii)

by striking the use of the and inserting these; and

(C)

in paragraph (9)—

(i)

by inserting provisional status, after approval,; and

(ii)

by striking ; and and inserting prior to serving children and families; and;

(3)

in subsection (d)—

(A)

in paragraph (1)—

(i)

by striking local and inserting non-Federal, local,; and

(ii)

by striking and at the end;

(B)

in paragraph (2), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(3)

coordinate with other community programs where appropriate to improve the quality and limit cost of the campus-based program.

;

(4)

by amending subsection (e) to read as follows:

(e)

Reporting requirements; continuing eligibility

(1)

Reporting requirements

(A)

Reports

Each institution of higher education receiving a grant under this section shall report to the Secretary annually. The Secretary shall annually publish such reports on a publicly accessible website of the Department of Education.

(B)

Contents

Each report shall include—

(i)

data on the population served under this section, including the total number of children and families served;

(ii)

information on sources of campus and community resources and the amount of non-Federal funding used to help low-income students access child care services on campus;

(iii)

documentation that the program meets applicable licensing, certification, approval, or registration requirements; and

(iv)

a description of how funding was used to pursue the goals of this section determined by the institution under subsection (c).

(2)

Continuing eligibility

The Secretary shall make continuation awards under this section to an institution of higher education only if the Secretary determines, on the basis of the reports submitted under paragraph (1) and the application from the institution, that the institution is—

(A)

using funds only for authorized purposes;

(B)

providing low-income students at the institution with priority access to affordable, quality child care services as provided under this section; and

(C)

documenting a continued need for Federal funding under this section, while demonstrating how non-Federal sources will be leveraged to support a continuation award.

; and

(5)

in subsection (g), by striking such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years and inserting $15,134,000 for each of fiscal years 2019 through 2024.

406.

Repeals

(a)

Academic competitiveness grants

Section 401A (20 U.S.C. 1070a–1) is repealed.

(b)

Federal Supplemental Educational Opportunity Grants

(1)

Repeal

Subpart 3 of part A of title IV (20 U.S.C. 1070b et seq.) is repealed.

(2)

Effective date

The repeal made by paragraph (1) shall take effect on June 30, 2018.

(c)

Leveraging Educational Assistance Partnership Program

Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is repealed.

(d)

Robert C. Byrd Honors Scholarship Program

Subpart 6 of part A of title IV (20 U.S.C. 1070d–31 et seq.) is repealed.

407.

Sunset of TEACH grants

Subpart 9 of part A of title IV (20 U.S.C. 1070g) is amended—

(1)

in section 420L(1) (20 U.S.C. 1070g(1), by striking section 102 and inserting section 102 (as in effect on the day before the date of enactment of the PROSPER Act);

(2)

in section 420N (20 U.S.C. 1070g–2)—

(A)

by amending subparagraph (B) of subsection (b)(1) to read as follows:

(B)

teach—

(i)

in a public or other nonprofit private elementary school or secondary school, which, for the purpose of this paragraph and for that year—

(I)

has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the school is located) to be a school in which the number of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), exceeds 30 percent of the total number of children enrolled in such school; and

(II)

is in the school district of a local educational agency which is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.); or

(ii)

in one or more public, or nonprofit private, elementary schools or secondary schools or locations operated by an educational service agency that have been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the educational service agency operates) to be a school or location at which the number of children taught who meet a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), exceeds 30 percent of the total number of children taught at such school or location;

; and

(B)

in subsection (c), by inserting (as in effect on the day before the date of the enactment of the PROSPER Act) after part D of title IV;

(3)

in section 420M(a) (20 U.S.C. 1070g–1), by adding at the end the following:

(3)

Termination

(A)

Termination of program authority

No new grants may be made under this subpart after June 30, 2018.

(B)

Limitation on funds

No funds are authorized to be appropriated, and no funds may be obligated or expended under this Act or any other Act, to make a grant under this subpart for which the first disbursement would be made after June 30, 2018.

; and

(4)

in section 420O (20 U.S.C. 1070g–3)—

(A)

by striking 2008 and inserting 2008, and ending on June 30, 2018; and

(B)

by adding at the end the following: No funds shall be available to the Secretary to carry out this subpart after June 30, 2018..

B

Federal Family Education Loan Program

421.

Federal Direct Consolidation Loans

Section 428C (20 U.S.C. 1078–3) is amended—

(1)

in subsection (a)(4)(B), by inserting before the semicolon at the end , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act; and

(2)

in subsection (b)(1)(F)(ii)—

(A)

in the matter preceding subclause (I), by inserting , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act after part E;

(B)

in subclause (I), in the matter preceding item (aa), by inserting , as so in effect, after part E;

(C)

in subclause (I)(bb), by inserting , as so in effect after section 464(c)(1)(A);

(D)

in subclause (II), by inserting , as so in effect after section 465(a); and

(E)

in subclause (III)—

(i)

by inserting , as so in effect after section 465; and

(ii)

by inserting , as so in effect after 465(a).

422.

Loan rehabilitation

Section 428F(a)(5) (20 U.S.C. 1078–6) is amended by striking one time and inserting two times.

423.

Loan forgiveness for teachers

Section 428J(b)(1)(A) (20 U.S.C. 1087–10(b)(1)(A)) is amended by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools or locations and inserting described in section 420N(b)(1)(B).

424.

Loan forgiveness for service in areas of national need

Section 428K (20 U.S.C. 1078–11) is amended—

(1)

in subsection (b)—

(A)

in paragraph (4)(B), by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school and inserting described in section 420N(b)(1)(B);

(B)

in paragraph (5)(B)(ii), by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school and inserting described in section 420N(b)(1)(B);

(C)

in paragraph (7)(A), by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school and inserting described in section 420N(b)(1)(B);

(D)

in paragraph (8), by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school and inserting described in section 420N(b)(1)(B); and

(E)

in paragraph (16), by striking that qualify under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school and inserting described in section 420N(b)(1)(B); and

(2)

in subsection (g)(6)(B), by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school and inserting described in section 420N(b)(1)(B).

425.

Loan repayment for civil legal assistance attorneys

Section 428L(b)(2)(A) (20 U.S.C. 1087–12(b)(2)(A)) is amended—

(1)

in clause (i), by inserting before the semicolon at the end , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act; and

(2)

in clause (ii)(III), by inserting , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act after part E;

426.

Sunset of cohort default rate and other conforming changes

(a)

Requirements for the Secretary

Section 430(e) (20 U.S.C. 1080(e)) is amended by adding at the end the following:

(4)

Sunset

The Secretary shall not be subject to the requirements of this subsection after the transition period described in section 481B(e)(3).

.

(b)

Eligible institution defined

Section 435 (20 U.S.C. 1085) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by striking section 102 and inserting section 101 and 102; and

(B)

by adding at the end the following:

(9)

Sunset

No institution shall be subject to paragraph (2) after the transition period described in section 481B(e)(3).

;

(2)

in subsection (m), by adding at the end the following:

(5)

Transition period; sunset

(A)

Transition period

During the transition period, the cohort default rate for an institution shall be calculated in the manner described in section 481B(e)(1).

(B)

Sunset

The Secretary shall not be subject, and no institution shall be subject, to the requirements of this subsection after the transition period.

(C)

Definition

In this paragraph, the term transition period has the meaning given the term in section 481B(e)(3).

; and

(3)

in subsection (o)(1), by inserting , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act after part E.

427.

Closed school and other discharges

Section 437(c) (20 U.S.C. 1087) is amended—

(1)

in paragraph (1), by inserting and the borrower meets the applicable requirements of paragraphs (6) through (8), after such student’s lender,;

(2)

in paragraph (4), by inserting before the period at the end , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to section 461(a) of such Act; and

(3)

by adding at the end the following:

(6)

Borrower qualifications for a closed school discharge

(A)

In general

In order to qualify for the discharge of a loan under this subsection due to the closure of the institution in which the borrower was enrolled, a borrower shall submit to the Secretary a written request and sworn statement—

(i)

that contains true factual assertions;

(ii)

that is made by the borrower under penalty of perjury, and that may or may not be notarized;

(iii)

under which the borrower (or the student on whose behalf a parent borrowed) states—

(I)

that the borrower or the student—

(aa)

received, on or after January 1, 1986, the proceeds of a loan made, insured, or guaranteed under this title to attend a program of study at an institution of higher education;

(bb)
(AA)

did not complete the program of study because the institution closed while the student was enrolled; or

(BB)

the student withdrew from the institution not more than 120 days before the institution closed, or in the case of exceptional circumstances described in subparagraph (B), not more than the period by which such 120-day period is extended under such subparagraph; and

(cc)

attempted but was unable to complete the program of study through a teach-out at another institution or by transferring academic credits or hours earned at the closed institution to another institution;

(II)

whether the borrower (or the student) has made a claim with respect to the institutions’s closing with any third party, such as the holder of a performance bond or a tuition recovery program, and, if so, the amount of any payment received by the borrower (or the student) or credited to the borrower’s loan obligation; and

(III)

that the borrower (or the student)—

(aa)

agrees to provide to the Secretary or the holder of the loan upon request other documentation reasonably available to the borrower that demonstrates that the borrower meets the qualifications for discharge under this subsection; and

(bb)

agrees to cooperate with the Secretary in enforcement actions in accordance with subparagraph (C) and to transfer any right to recovery against a third party to the Secretary in accordance with subparagraph (D).

(B)

Exceptional circumstances

(i)

In general

The Secretary may extend the 120-day period described in subparagraph (A)(iii)(I)(bb)(BB) if the Secretary determines that exceptional circumstances related to an institution’s closing justify an extension.

(ii)

Definition

For purposes of this subsection, the term exceptional circumstances, when used with respect to an institution that closed, includes the loss of accreditation of institution, the institutions’ discontinuation of the majority of its academic programs, action by the State to revoke the institution’s license to operate or award academic credentials in the State, or a finding by a State or Federal Government agency that the institution violated State or Federal law.

(C)

Cooperation by borrower in enforcement actions

(i)

In general

In order to obtain a discharge described in subparagraph (A), a borrower shall cooperate with the Secretary in any judicial or administrative proceeding brought by the Secretary to recover amounts discharged or to take other enforcement action with respect to the conduct on which the discharge was based. At the request of the Secretary and upon the Secretary's tendering to the borrower the fees and costs that are customarily provided in litigation to reimburse witnesses, the borrower shall—

(I)

provide testimony regarding any representation made by the borrower to support a request for discharge;

(II)

produce any documents reasonably available to the borrower with respect to those representations; and

(III)

if required by the Secretary, provide a sworn statement regarding those documents and representations.

(ii)

Denial of request for discharge

The Secretary shall deny the request for such a discharge or revoke the discharge of a borrower who—

(I)

fails to provide the testimony, documents, or a sworn statement required under clause (i); or

(II)

provides testimony, documents, or a sworn statement that does not support the material representations made by the borrower to obtain the discharge.

(D)

Transfer to the Secretary of borrower's right of recovery against third parties

(i)

In general

Upon receiving a discharge described in subparagraph (A) of a loan, the borrower shall be deemed to have assigned to and relinquished in favor of the Secretary any right to a loan refund for such loan (up to the amount discharged) that the borrower (or student) may have by contract or applicable law with respect to the loan or the enrollment agreement for the program for which the loan was received, against the institution, its principals, its affiliates and their successors, its sureties, and any private fund, including the portion of a public fund that represents funds received from a private party.

(ii)

Application

The provisions of this subsection apply notwithstanding any provision of State law that would otherwise restrict transfer of such rights by the borrower (or student), limit, or prevent a transferee from exercising such rights, or establish procedures or a scheme of distribution that would prejudice the Secretary's ability to recover on such rights.

(iii)

Rule of construction

Nothing in this subsection shall limit or foreclose the borrower's (or student's) right to pursue legal and equitable relief regarding disputes arising from matters unrelated to the discharged loan.

(E)

Discharge procedures

(i)

In general

After confirming the date of an institution's closure, the Secretary shall identify any borrower (or student on whose behalf a parent borrowed) who appears to have been enrolled at the institution on the closure date of the institution or to have withdrawn not more than 120 days prior to the closure date (or in the case of exceptional circumstances described in subparagraph (B), not more than the period by which such 120-day period is extended under such subparagraph. In the case of a loan made, insured, or guaranteed under this part, a guaranty agency shall notify the Secretary immediately whenever it becomes aware of reliable information indicating an institution may have closed.

(ii)

Borrower address

(I)

Known

If the borrower's current address is known, the Secretary shall mail the borrower a discharge application and an explanation of the qualifications and procedures for obtaining a discharge. The Secretary or the guaranty agency shall promptly suspend any efforts to collect from the borrower on any affected loan. The Secretary may continue to receive borrower payments of the loan for which the discharge application has been filed.

(II)

Unknown

If the borrower's current address is unknown, the Secretary shall attempt to locate the borrower and determine the borrower's potential eligibility for a discharge described in subparagraph (A) by consulting with representatives of the closed institution, the institution's licensing agency, the institution's accrediting agency, and other appropriate parties. If the Secretary learns the new address of a borrower, the Secretary shall mail to the borrower a discharge application and explanation, and shall suspend collection on the loan, as described in subclause (I).

(iii)

Sworn statement

If a borrower fails to submit the written request and sworn statement described subparagraph (A) not later than 60 days after date on which the Secretary mails the discharge application under clause (ii), the Secretary—

(I)

shall resume collection on the loan and grant forbearance of principal and interest for the period in which collection activity was suspended; and

(II)

may capitalize any interest accrued and not paid during such period.

(iv)

Notification

(I)

Qualifications met

If the Secretary determines that a borrower who requests a discharge described in subparagraph (A) meets the qualifications for such a discharge, the Secretary shall—

(aa)

notify the borrower in writing of that determination; and

(bb)

not regard a borrower who has defaulted on a loan that has been so discharged as in default on the loan after such discharge, and such a borrower shall be eligible to receive assistance under this title.

(II)

Qualifications not met

If the Secretary determines that a borrower who requests a discharge described in subparagraph (A) does not meet the qualifications for such a discharge, the Secretary or guaranty agency shall resume collection on the loan and notify the borrower in writing of that determination and the reasons for the determination.

(7)

Borrower qualifications for a false certification discharge

(A)

Application

(i)

In general

In order to qualify for false certification discharge under this subsection, the borrower shall submit to the Secretary, on a form approved by the Secretary, an application for discharge that—

(I)

does not need not be notarized, but shall be made by the borrower under penalty of perjury; and

(II)

demonstrates to the satisfaction of the Secretary that the requirements in subparagraphs (B) through (G) have been met.

(ii)

Notification

If the Secretary determines the application does not meet the requirements of clause (i), the Secretary shall notify the applicant and explain why the application does not meet the requirements.

(B)

High school diploma or equivalent

In the case of a borrower requesting a false certification discharge based on not having had a high school diploma and not having met the alternative to graduation from high school eligibility requirements under section 484(d) applicable at the time the loan was originated, and the institution or a third party to which the institution referred the borrower falsified the student’s high school diploma, the borrower shall state in the application that the borrower (or the student on whose behalf a parent borrowed)—

(i)

reported not having a valid high school diploma or its equivalent at the time the loan was certified; and

(ii)

did not satisfy the alternative to graduation from high school statutory or regulatory eligibility requirements identified on the application form and applicable at the time the institution certified the loan.

(C)

Disqualifying condition

In the case of a borrower requesting a false certification discharge based on a condition that would disqualify the borrower from employment in the occupation that the program for which the borrower received the loan was intended, the borrower shall state in the application that the borrower (or student on whose behalf the parent borrowed) did not meet State requirements for employment (in the student’s State of residence) in the occupation that the program for which the borrower received the loan was intended because of a physical or mental condition, age, criminal record, or other reason accepted by the Secretary.

(D)

Unauthorized loan

In the case of a borrower requesting a discharge under this subsection because the institution signed the borrower’s name on the loan application or promissory note without the borrower’s authorization, the borrower shall—

(i)

state that the borrower did not sign the document in question or authorize the institution to do so; and

(ii)

provide 5 different specimens of the borrower’s signature, two of which must be within one year before or after the date of the contested signature.

(E)

Unauthorized payment

In the case of a borrower requesting a false certification discharge because the institution, without the borrower’s authorization, endorsed the borrower’s loan check or signed the borrower’s authorization for electronic funds transfer, the borrower shall—

(i)

state that the borrower did not endorse the loan check or sign the authorization for electronic funds transfer or authorize the institution to do so;

(ii)

provide 5 different specimens of the borrower’s signature, two of which must be within one year before or after the date of the contested signature; and

(iii)

state that the proceeds of the contested disbursement were not delivered to the borrower or applied to charges owed by the borrower to the institution.

(F)

Identity theft

(i)

In general

In the case of an individual whose eligibility to borrow was falsely certified because the individual was a victim of the crime of identity theft and is requesting a discharge, the individual shall—

(I)

certify that the individual did not sign the promissory note, or that any other means of identification used to obtain the loan was used without the authorization of the individual claiming relief;

(II)

certify that the individual did not receive or benefit from the proceeds of the loan with knowledge that the loan had been made without the authorization of the individual;

(III)

provide a copy of a local, State, or Federal court verdict or judgment that conclusively determines that the individual who is named as the borrower of the loan was the victim of a crime of identity theft; and

(IV)

if the judicial determination of the crime does not expressly state that the loan was obtained as a result of the crime of identity theft, provide—

(aa)

authentic specimens of the signature of the individual, as described in subparagraph (D)(ii), or of other means of identification of the individual, as applicable, corresponding to the means of identification falsely used to obtain the loan; and

(bb)

statement of facts that demonstrate, to the satisfaction of the Secretary, that eligibility for the loan in question was falsely certified as a result of the crime of identity theft committed against that individual.

(ii)

Definitions

For purposes of this subparagraph:

(I)

Identity theft

The term identity theft means the unauthorized use of the identifying information of another individual that is punishable under section 1028, 1028A, 1029, or 1030 of title 18, United States Code, or substantially comparable State or local law.

(II)

Identifying information

The term identifying information includes—

(aa)

name, Social Security number, date of birth, official State or government issued driver’s license or identification number, alien registration number, government passport number, and employer or taxpayer identification number;

(bb)

unique biometric data, such as fingerprints, voiceprint, retina or iris image, or unique physical representation;

(cc)

unique electronic identification number, address, or routing code; or

(dd)

telecommunication identifying information or access device (as defined in 18 U.S.C. 1029(e)) borrower qualifications for a false certification discharge

(G)

Claim to third party

The borrower shall state whether the borrower has made a claim with respect to the institutions’s false certification or unauthorized payment with any third party, such as the holder of a performance bond or a tuition recovery program, and, if so, the amount of any payment received by the borrower or credited to the borrower’s loan obligation.

(H)

Cooperation with the secretary

The borrower shall state that the borrower—

(i)

agrees to provide to the Secretary upon request other documentation reasonably available to the borrower that demonstrates that the borrower meets the qualifications for discharge under this subsection; and

(ii)

agrees to cooperate with the Secretary in enforcement actions and to transfer any right to recovery against a third party to the Secretary.

(8)

Borrower qualifications for an unpaid refund discharge

To receive an unpaid refund discharge of a portion of a loan under this subsection, a borrower shall submit to the holder or guaranty agency a written application—

(A)

that requests the information required to calculate the amount of the discharge;

(B)

that the borrower signs for the purpose of swearing to the accuracy of the information;

(C)

that is made by the borrower under penalty of perjury, and that may or may not be notarized; and

(D)

under which the borrower states—

(i)

that the borrower—

(I)

received, on or after January 1, 1986, the proceeds of a loan, in whole or in part, made, insured, or guaranteed under this title to attend an institution of higher education;

(II)

did not attend, withdrew, or was terminated from the institution within a timeframe that entitled the borrower to a refund; and

(III)

did not receive the benefit of a refund to which the borrower was entitled either from the institution or from a third party, such as the holder of a performance bond or a tuition recovery program;

(ii)

whether the borrower has any other application for discharge pending for this loan; and

(iii)

that the borrower—

(I)

agrees to provide to the Secretary upon request other documentation reasonably available to the borrower that demonstrates that the borrower meets the qualifications for discharge under this subsection; and

(II)

agrees to cooperate with the Secretary in enforcement actions and to transfer any right to recovery against a third party to the Secretary.

.

C

Federal Work-Study Programs

441.

Purpose; authorization of appropriations

Section 441 (20 U.S.C. 1087–51) is amended—

(1)

in subsection (a)—

(A)

by striking part-time and inserting paid;

(B)

by striking , graduate, or professional; and

(C)

by striking community service and inserting work-based learning;

(2)

in subsection (b), by striking part, such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years. and inserting part, $1,722,858,000 for fiscal year 2019 and each of the 5 succeeding fiscal years.; and

(3)

by amending subsection (c) to read as follows:

(c)

Work-Based learning

For purposes of this part, the term work-based learning means paid interactions with industry or community professionals in real workplace settings that foster in-depth, first-hand engagement with the tasks required of a given career field, that are aligned to a student’s field of study.

.

442.

Allocation formula

Section 442 (20 U.S.C. 1087–52) is amended to read as follows:

442.

Allocation of funds

(a)

Reservations

(1)

Reservation for improved institutions

(A)

Amount of reservation for improved institutions

For a fiscal year in which the amount appropriated under section 441(b) exceeds $700,000,000, the Secretary shall—

(i)

reserve the lesser of—

(I)

an amount equal to 20 percent of the amount by which the amount appropriated under section 441(b) exceeds $700,000,000; or

(II)

$150,000,000; and

(ii)

allocate the amount reserved under clause (i) to each improved institution in an amount—

(I)

that bears the same proportion to the amount reserved under clause (i) as the total amount of all Federal Pell Grant funds awarded at the improved institution for the second preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at improved institutions participating under this part for the second preceding fiscal year; and

(II)

is not—

(aa)

less than $10,000; or

(bb)

greater than $1,500,000.

(B)

Improved institution described

For purposes of this paragraph, an improved institution is an institution that, on the date the Secretary makes an allocation under subparagraph (A)(ii) is, with respect to—

(i)

the completion rate or graduation rate of Federal Pell Grant recipients at the institution, in the top 10 percent of—

(I)

if the institution is an institution described in any of clauses (iv) through (ix) of section 132(d)(1)(B), all such institutions participating under this part for the preceding fiscal year; or

(II)

if the institution is an institution described in any of clauses (i) through (iii) of section 132(d)(1)(B), all such institutions participating under this part for the preceding fiscal year; or

(ii)

the improvement of the completion rate or graduation rate between the preceding fiscal year and such date, in the top 10 percent of the institutions described in clause (i).

(C)

Completion rate or graduation rate

For purposes of determining the completion rate or graduation rate under this section, a Federal Pell Grant recipient shall be counted as a completor or graduate if, within the normal time for completion of or graduation from the program, the student has completed or graduated from the program, or enrolled in any program of an institution participating in any program under this title for which the prior program provides substantial preparation.

(D)

Reallocation of returned amount

If an institution returns to the Secretary any portion of the sums allocated to such institution under this paragraph for any fiscal year, the Secretary shall reallot such excess to improved institutions on the same basis as under subparagraph (A)(ii)(I).

(2)

Reservation for work colleges

From the amounts appropriated under section 441(b), the Secretary shall reserve to carry out section 448 such amounts as may be necessary for fiscal year 2019 and each of the 5 succeeding fiscal years.

(b)

Allocation formula for fiscal years 2019 through 2023

(1)

In general

From the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution—

(A)

for fiscal year 2019, an amount equal to the greater of—

(i)

90 percent of the amount the institution received under this subsection and subsection (a) for fiscal year 2018, as such subsections were in effect with respect to such fiscal year (in this subparagraph referred to as the 2018 amount for the institution); or

(ii)

the fair share amount for the institution determined under subsection (d);

(B)

for fiscal year 2020, an amount equal to the greater of—

(i)

80 percent of the 2018 amount for the institution; or

(ii)

the fair share amount for the institution determined under subsection (d);

(C)

for fiscal year 2021, an amount equal to the greater of—

(i)

60 percent of the 2018 amount for the institution; or

(ii)

the fair share amount for the institution determined under subsection (d);

(D)

for fiscal year 2022, an amount equal to the greater of—

(i)

40 percent of the 2018 amount for the institution; or

(ii)

the fair share amount for the institution determined under subsection (d); and

(E)

for fiscal year 2023, an amount equal to the greater of—

(i)

20 percent of the 2018 amount for the institution; or

(ii)

the fair share amount for the institution determined under subsection (d).

(2)

Ratable reduction

(A)

In general

If the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection (a) is less than the amount required to be allocated to the institutions under this subsection, then the amount of the allocation to each institution shall be ratably reduced.

(B)

Additional appropriations

If the amounts allocated to each institution are ratably reduced under subparagraph (A) for a fiscal year and additional amounts are appropriated for such fiscal year, the amount allocated to each institution from the additional amounts shall be increased on the same basis as the amounts under subparagraph (A) were reduced (until each institution receives the amount required to be allocated under this subsection).

(c)

Allocation formula for fiscal year 2024 and each succeeding fiscal year

From the amount appropriated under section 441(b) for fiscal year 2024 and each succeeding fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution the fair share amount for the institution determined under subsection (d).

(d)

Determination of fair share amount

(1)

In general

The fair share amount for an institution for a fiscal year shall be equal to the sum of the following:

(A)

An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of Federal Pell Grant funds disbursed at the institution for the preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at all institutions participating under this part for the preceding fiscal year.

(B)

An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of the undergraduate student need at the institution for the preceding fiscal year bears to the total amount of undergraduate student need at all institutions participating under this part for the preceding fiscal year.

(2)

Definitions

In this subsection:

(A)

Available appropriated amount

The term available appropriated amount means—

(i)

the amount appropriated under section 441(b) for a fiscal year, minus

(ii)

the amounts reserved under subsection (a) for such fiscal year.

(B)

Average cost of attendance

The term average cost of attendance means, with respect to an institution, the average of the attendance costs for a fiscal year for students which shall include—

(i)

tuition and fees, computed on the basis of information reported by the institution to the Secretary, which shall include—

(I)

total revenue received by the institution from undergraduate tuition and fees for the second year preceding the year for which it is applying for an allocation; and

(II)

the institution's enrollment for such second preceding year;

(ii)

standard living expenses equal to 150 percent of the difference between the income protection allowance for a family of five with one in college and the income protection allowance for a family of six with one in college for a single independent student; and

(iii)

books and supplies, in an amount not exceeding $800.

(C)

Undergraduate student need

The term undergraduate student need means, with respect to an undergraduate student for a fiscal year, the lesser of the following:

(i)

The total of the amount equal to (except the amount computed by this clause shall not be less than zero)—

(I)

the average cost of attendance for the fiscal year, minus

(II)

the total amount of each such undergraduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding fiscal year.

(ii)

$12,500.

(e)

Return of surplus allocated funds

(1)

Amount returned

If an institution returns more than 10 percent of its allocation under subsection (d), the institution's allocation for the next fiscal year shall be reduced by the amount returned.

(2)

Waiver

The Secretary may waive this paragraph for a specific institution if the Secretary finds that enforcing this paragraph would be contrary to the interest of the program.

(f)

Filing deadlines

The Secretary shall, from time to time, set dates before which institutions must file applications for allocations under this part.

.

443.

Grants for Federal work-study programs

Section 443 (20 U.S.C. 1087–53) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1), in the matter preceding subparagraph (A), by striking part-time;

(B)

in paragraph (2), by striking except that— and all that follows through an institution may use a portion and inserting except that an institution may use a portion;

(C)

in paragraph (3), by inserting undergraduate after only;

(D)

in paragraph (4), by striking 300 and inserting 500;

(E)

in paragraph (5)—

(i)

by striking shall not exceed 75 percent and inserting shall not exceed 75 percent in the first year after the date of the enactment of PROSPER Act, 65 percent in the first succeeding fiscal year, 60 percent in the second succeeding fiscal year, 55 percent in the third succeeding fiscal year, and 50 percent each succeeding fiscal year;

(ii)

by striking subparagraph (A);

(iii)

in subparagraph (B)—

(I)

by striking 75 and inserting 50; and

(II)

by striking the semicolon and inserting ; and;

(iv)

by redesignating subparagraph (B) as subparagraph (A); and

(v)

by adding at the end the following:

(B)

the Federal share may equal 100 percent with respect to funds received under section 442(a)(1)(A);

;

(F)

in paragraph (8)—

(i)

in subparagraph (A)(i), by striking vocational and inserting career; and

(ii)

in subparagraph (B), by striking community service and inserting work-based learning;

(G)

in paragraph (10), by striking ; and and inserting a semicolon;

(H)

in paragraph (11), by striking the period at the end and inserting a semicolon; and

(I)

by adding at the end the following:

(12)

provide assurances that the institution will collect data from students and employers such that the employment made available from funds under this part will, to the maximum extent practicable, complement and reinforce the educational goals or career goals of each student receiving assistance under this part; and

(13)

provide assurances that if the institution receives funds under section 442(a)(1)(A), such institution shall—

(A)

use such funds to compensate students participating in the work-study program; and

(B)

prioritize the awarding of such funds to students—

(i)

who demonstrate exceptional need; or

(ii)

who are employed in work-based learning opportunities through the work-study program.

;

(2)

in subsection (c)—

(A)

in paragraph (1)—

(i)

by striking program of part-time employment and inserting the following:

program—

(A)

of employment

; and

(ii)

by inserting or after subsection (b)(3);; and

(iii)

by adding at the end the following:

(B)

of full-time employment of its cooperative education students in work for a private for-profit organization under an arrangement between the institution and such organization that complies with the requirements of subparagraphs (A) through (D) of subsection (b)(1) of this section and subsection (b)(4) of this section;

;

(B)

by striking paragraph (2);

(C)

in paragraph (4), by inserting and complement and reinforce the educational goals or career goals of each student receiving assistance under this part after relevant; and

(D)

by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; and

(3)

in subsection (d)—

(A)

in paragraph (1)—

(i)

by striking In any academic year to which subsection (b)(2)(A) applies, an institution shall ensure that and inserting An institution may use the; and

(ii)

by striking are used; and

(B)

in paragraph (3), by striking may exceed 75 percent and inserting shall not exceed 50 percent.

444.

Flexible use of funds

Section 445(a) (20 U.S.C. 1087–55(a)) is amended—

(1)

in paragraph (2), by striking in the same State and inserting described under section 442(a)(1)(B); and

(2)

by adding at the end the following new paragraph:

(3)

In addition to the carry-over sums authorized under paragraph (1) of this section, an institution may permit a student who completed the previous award period to continue to earn unearned portions of the student’s work-study award from that previous year if—

(A)

any reduction in the student’s need upon which the award was based is accounted for in the remaining portion; and

(B)

the student is currently employed in a work-based learning position.

.

445.

Job location and development programs

Section 446 (20 U.S.C. 1087–56) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1)—

(i)

by striking 10 percent or $75,000 and inserting 20 percent or $150,000; and

(ii)

by striking , including community service jobs,; and

(B)

in paragraph (2), by striking vocational and inserting career; and

(2)

in subsection (b)—

(A)

by striking paragraph (2);

(B)

by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; and

(C)

by inserting before paragraph (4) the following:

(2)

provide satisfactory assurance that the institution will prioritize placing students with the lowest expected family contribution and Federal work-study recipients in jobs located and developed under this section;

(3)

provide a satisfactory assurance that the institution will locate and develop work-based learning opportunities through the job location development programs;

; and

(D)

in paragraph (7), by striking the period and inserting

, including—

(A)

the number of students employed in work-based learning opportunities through such program;

(B)

the number of students demonstrating exceptional need and employed in a work-study program through such program; and

(C)

the number of students demonstrating exceptional need and employed in work-based learning opportunities through such program.

.

446.

Community service

Section 447 (20 U.S.C. 1087–57) is repealed.

447.

Work colleges

Section 448 (20 U.S.C. 1087–58) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1)—

(i)

by striking and part E; and

(ii)

by striking appropriated and inserting allocated;

(B)

in paragraph (2), by striking appropriated pursuant to and inserting allocated under;

(2)

in subsection (c), by striking authorized by and inserting allocated under;

(3)

in subsection (e)(1)—

(A)

in subparagraph (C), by striking ; and and inserting a semicolon; and

(B)

by adding at the end the following:

(E)

has administered Federal work-study for at least 2 years; and

; and

(4)

by amending subsection (f) to read as follows:

(f)

Allocation of reserved funds

(1)

In general

Subject to paragraph (2), from the amount reserved under section 442(a)(2) for a fiscal year to carry out this section, the Secretary shall allocate to each work college that submits an application under subsection (c) an amount equal to the amount that bears the same proportion to the amount appropriated for such fiscal year as the number of students eligible for employment under a work-study program under this part who are enrolled at the work college bears to the total number of students eligible for employment under a work-study program under this part who are enrolled at all work colleges.

(2)

Reallotment of unmatched funds

If a work college is unable to match funds received under paragraph (1) in accordance with subsection (d), any unmatched funds shall be returned to the Secretary and the Secretary shall reallot such funds on the same basis as funds are allocated under paragraph (1).

.

D

Federal Direct Student Loan Program

451.

Termination of Federal Direct Loan Program under part D and other conforming amendments

(a)

Appropriations

Section 451 (20 U.S.C. 1087a) is amended—

(1)

in subsection (a), by adding at the end the following: No sums may be expended after September 30, 2024, with respect to loans under this part for which the first disbursement is after such date.; and

(2)

by adding at the end, the following:

(c)

Termination of authority To make new loans

Notwithstanding subsection (a) or any other provision of law—

(1)

no new loans may be made under this part after September 30, 2024; and

(2)

no funds are authorized to be appropriated, or may be expended, under this Act, or any other Act to make loans under this part for which the first disbursement is after September 30, 2024,

except as expressly authorized by an Act of Congress enacted after the date of enactment of the PROSPER Act.
(d)

Student eligibility beginning with award year 2019

(1)

New borrowers

No loan may be made under this part to a new borrower for which the first disbursement is after June 30, 2019.

(2)

Borrowers with outstanding balances

Subject to paragraph (3), with respect to a borrower who, as of July 1, 2019, has an outstanding balance of principal or interest owing on a loan made under this part, such borrower may—

(A)

in the case of such a loan made to the borrower for enrollment in a program of undergraduate education, borrow loans made under this part for any program of undergraduate education through the close of September 30, 2024;

(B)

in the case of such a loan made to the borrower for enrollment in a program of graduate or professional education, borrow loans made under this part for any program of graduate or professional education through the close of September 30, 2024; and

(C)

in the case of such a loan made to the borrower on behalf of a dependent student for the student’s enrollment in a program of undergraduate education, borrow loans made under this part on behalf of such student through the close of September 30, 2024.

(3)

Loss of eligibility

A borrower described in paragraph (2) who borrows a loan made under part E for which the first disbursement is made on or after July 1, 2019, shall lose the borrower’s eligibility to borrow loans made under this part in accordance with paragraph (2).

.

(b)

Perkins Loan conforming amendment

Section 453(c)(2)(A) (20 U.S.C. 1087c(c)(2)(A)) is amended by inserting , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to subsection 461(a), after part E.

(c)

Applicable interest rates and other terms and conditions

Section 455 (20 U.S.C. 1087e) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by inserting , and first disbursed before October 1, 2024, after under this part; and

(B)

in paragraph (2), by inserting , and first disbursed before October 1, 2024, after under this part;

(2)

in subsection (b)(8)—

(A)

in the section heading, by inserting and before October 1, 2024 after 2013;

(B)

in subparagraph (A), by inserting and before October 1, 2024, after July 1, 2013,;

(C)

in subparagraph (B), by inserting and before October 1, 2024, after July 1, 2013,;

(D)

in subparagraph (C), by inserting and before October 1, 2024, after July 1, 2013,; and

(E)

in subparagraph (D), by inserting and before October 1, 2024, after July 1, 2013,;

(3)

in subsection (c)(2)(E), by inserting , and before October 1, 2024 after July 1, 2010;

(4)

in subsection (e)(7), in the matter preceding subparagraph (A), by inserting , as in effect on the day before the date of enactment of the PROSPER Act and pursuant to subsection 461(a) after part E;

(5)

in subsection (g)—

(A)

by inserting , and first disbursed before October 1, 2024, after under this part; and

(B)

by adding at the end the following: The authority to make consolidation loans under this subsection expires at the close of September 30, 2024. No loan may be made under this subsection for which the disbursement is on or after October 1, 2024.; and

(6)

in subsection (o)—

(A)

in paragraph (1), by inserting , and before October 1, 2024, after October 1, 2008; and

(B)

in paragraph (2)—

(i)

by inserting and before October 1, 2024, after October 1, 2008,; and

(ii)

by inserting , and before October 1, 2024 after October 1, 2008.

452.

Borrower defenses

Section 455(h) (20 U.S.C. 1087e(h)) is amended to read as follows:

(h)

Borrower Defenses

(1)

In general

In any proceeding to collect on a loan made under this part to a borrower, the Secretary shall abide by the following:

(A)

In no event may the borrower recover any amount previously collected or be freed of amounts owed to the Secretary without submitting an individually-filed application for approval.

(B)

In no event may the borrower recover amounts previously collected by the Secretary, in any action arising from or relating to a loan made under this part, in an amount in excess of the amount that has been paid by the borrower on such loan.

(C)

In no event may the borrower recover amounts previously collected by the Secretary later than 3 years after the misconduct or breach of contract on behalf of the institution takes place that gives rise to the borrower to assert a defense to repayment of the loan.

(D)

In no event may anyone other than an administrative law judge or its equivalent preside over hearings of any kind related to applications submitted under this subsection.

(E)

In no event may the Secretary approve or disapprove the borrower’s application under this subsection without allowing for the equal consideration of evidence and arguments presented by a representative on behalf of the student or students and a representative on behalf of the institution, if either such party makes a request.

(F)

In no event may the Secretary withhold from an institution any materials, facts, or evidence used when processing an application submitted by the borrower.

(G)

In no event may the borrower of a loan made, insured or guaranteed under this title (other than a loan made under this part or a Federal ONE Loan) submit an application under this subsection without consolidating the loans of the borrower into a Federal ONE Consolidation Loan.

(2)

Borrower application requirements

(A)

In general

An application submitted by a borrower under this subsection to the Secretary shall—

(i)

certify the borrower’s receipt of loan proceeds, in whole or in part, to attend the named institution of higher education;

(ii)

provide evidence described in subparagraph (B) that supports a borrower defense to repayment of the loan; and

(iii)

indicate whether the borrower has made a claim with respect to the information underlying the borrower defense with any third party and, if so, the amount of any payment received by the borrower or credited to the borrower’s loan obligation.

(B)

Evidence

The borrower has a borrower defense if—

(i)

the borrower, whether as an individual or as a member of a class, or a governmental agency, has obtained against the institution of higher education a nondefault, favorable contested judgment based on State or Federal law in a court or administrative tribunal of competent jurisdiction;

(ii)

the institution of higher education for which the borrower received the loan made under this part failed to perform its obligations under the terms of a contract with the student; or

(iii)

the institution of higher education described in clause (ii) or any of its representatives engaged directly in marketing, recruitment or admissions activities, or any other institution of higher education, organization, or person with whom such institution has an agreement to provide educational programs, or to provide marketing, advertising, recruiting, or admissions services, made a substantial misrepresentation within the meaning of section 487(c)(3)(B)(i)(II) that the borrower reasonably relied on when the borrower decided to attend, or to continue attending, such institution.

(3)

Secretarial notification requirements

(A)

Receipt of application

Upon receipt of a borrower’s application, the Secretary—

(i)

if the borrower is not in default on the loan for which a borrower defense has been asserted, shall grant a forbearance and notify the borrower of the option to decline the forbearance and to continue making payments on the loan;

(ii)

if the borrower is in default on the loan for which a borrower defense has been asserted—

(I)

shall suspend collection activity on the loan until the Secretary issues a decision on the borrower’s claim;

(II)

shall notify the borrower of the suspension of collection activity and explain that collection activity will resume if the Secretary determines that the borrower does not qualify for a full discharge; and

(III)

shall notify the borrower of the option to continue making payments under a rehabilitation agreement or other repayment agreement on the defaulted loan; and

(iii)

shall to the extent possible, notify the institutions against which the application is filed, which notification shall include—

(I)

the reasons that the application has been filed; and

(II)

the amount of relief requested.

(B)

Approved application

If a borrower’s application is approved in full or in part, the Secretary shall—

(i)

notify the borrower and the institution in writing of that determination and of the relief provided; and

(ii)

inform the institution of the opportunity to request a one-time reconsideration of the claim in the application if new evidence that was not previously provided can be identified.

(C)

Application not approved

If a borrower’s application is not approved in full or in part, the Secretary—

(i)

shall notify the borrower and the institution of the reasons for the denial, the evidence that was relied upon, any portion of the loan that is due and payable to the Secretary, whether the Secretary will reimburse any amounts previously collected, and inform the borrower that the loan will return to its status prior to the borrower’s submission of the application; and

(ii)

shall inform the borrower of the opportunity to request a one-time reconsideration of the claim in the application if new evidence that was not previously provided can be identified.

(D)

Consolidation

During a proceeding for an individual borrower, the Secretary may consolidate individually-filed applications that have common facts and claims and resolve the borrowers’ borrower defense claims for faster processing.

(E)

New evidence defined

For purposes of this paragraph, the term new evidence means relevant evidence that the borrower or the institution did not previously provide and that was not identified in the final decision as evidence that was relied upon for the final decision. If accepted for reconsideration by the Secretary, the Secretary shall follow the procedure under this paragraph.

(4)

Calculation of relief

The Secretary shall determine the appropriate method for calculating the amount of relief to be awarded to a borrower as a result of a proceeding described in this subsection based on the materials, facts, and evidence presented during the proceeding.

(5)

Further relief

The Secretary may afford the borrower such further relief as the Secretary determines is appropriate under the circumstances, but which shall not exceed the following:

(A)

Reimbursing the borrower for amounts paid toward the loan voluntarily or through enforced collection.

(B)

Restoring eligibility for assistance under this title after determining that the borrower is not in default on the loan.

(C)

Updating reports to consumer reporting agencies to which the Secretary previously made adverse credit reports with regard to a loan made under this part.

(6)

Recovery

(A)

In general

The Secretary may initiate an appropriate proceeding to require the institution of higher education whose act or omission resulted in the borrower’s successful defense against repayment of a loan made under this part to pay to the Secretary the amount of the loan to which the defense applies not later than 3 years from the end of the last award year in which the student attended the institution.

(B)

Notice

The Secretary may initiate a proceeding to collect at any time if the institution received notice of the claim before the end of the later of the periods described in subparagraph (A). For purposes of this subparagraph, notice includes receipt of—

(i)

actual notice from the borrower, from a representative of the borrower, or from the Department;

(ii)

a class action complaint asserting relief for a class that may include the borrower; or

(iii)

written notice, including a civil investigative demand or other written demand for information, from a Federal or State agency that has power to initiate an investigation into conduct of the institution of higher education relating to specific programs, periods, or practices that may have affected the borrower.

.

453.

Administrative expenses

Section 458(a) (20 U.S.C. 1087h)—

(1)

in paragraph (3)—

(A)

by striking 2007 each place it appears and inserting 2019;

(B)

by striking 2014 each place it appears and inserting 2024; and

(C)

by striking part and part B, including the costs of the direct student loan programs under this part and inserting title;

(2)

in paragraph (6)—

(A)

in subparagraph (B), by striking 2010 and inserting 2019; and

(B)

in subparagraph (C), by striking training and inserting education;

(3)

by striking paragraph (7); and

(4)

by redesignating paragraph (8) as paragraph (7).

454.

Loan cancellation for teachers

Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended by striking that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools or locations and inserting described in section 420N(b)(1)(B).

E

Federal ONE Loans

461.

Wind-down of Federal Perkins Loan Program

(a)

In general

Except as otherwise provided in this section and notwithstanding section 462, the provisions of part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect on the day before the date of enactment of this Act, are deemed to be incorporated in this subsection as though set forth fully in this subsection, and shall have the same force and effect as on such day.

(b)

Close-Out audits

(1)

In general

In the case of an institution of higher education that desires to have a final audit of its participation under the program under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a), at the same time as its annual financial and compliance audit under section 487(c) of such Act (20 U.S.C. 1094(c)), such institution shall submit to the Secretary a request, in writing, for such an arrangement not later than 60 days after the institution terminates its participation under such program.

(2)

Termination of participation

For purposes of this subsection, an institution shall be considered to have terminated its participation under the program described in paragraph (1), if the institution—

(A)
(i)

has made a determination not to service and collect student loans made available from funds under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a); or

(ii)

has completed the servicing and collection of such student loans; and

(B)

has completed the asset distribution required under section 466(b) of the Higher Education Act of 1965 (20 U.S.C. 1087ff(b)), as in effect pursuant to subsection (a).

(c)

Collection of interest on certain student loans

In the case of an institution of higher education that, on or after October 1, 2006, loaned an amount to its student loan fund established under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a), for the purpose of making student loans from such fund, and that, before the date of enactment of this Act, has repaid to itself the amount loaned to such student loan fund, the institution shall collect any interest earned on such student loans.

(d)

Assignment of loans to Secretary

Notwithstanding the requirements of section 463(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1087cc(a)(5)), as in effect pursuant to subsection (a), if an institution of higher education determines not to service and collect student loans made available from funds under part E of such Act (20 U.S.C. 1087aa et seq.), as so in effect—

(1)

the institution shall assign, during the repayment period, any notes or evidence of obligations of student loans made from such funds to the Secretary; and

(2)

the Secretary shall deposit any sums collected on such notes or obligations (less an amount not to exceed 30 percent of any such sums collected to cover that Secretary’s collection costs) into the Treasury of the United States.

(e)

Closed school discharge

The amendments made by section 427 to section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 1087), relating to closed school discharge, shall apply with respect to any loans discharged on or after the date of enactment of this Act under section 464(g) of such Act (20 U.S.C. 10877dd(g)), as in effect pursuant to subsection (a)).

462.

Federal ONE Loan program

Part E of title IV (20 U.S.C. 1087aa et seq.) is amended to read as follows:

461.

Program authority

(a)

In general

There are hereby made available, in accordance with the provisions of this part, such sums as may be necessary to make loans to all eligible students (and the eligible parents of such students) in attendance at participating institutions of higher education selected by the Secretary to enable such students to pursue their courses of study at such institutions during the period beginning July 1, 2019. Loans made under this part shall be made by participating institutions that have agreements with the Secretary to originate loans.

(b)

Designation

The program established under this part shall be referred to as the Federal ONE Loan Program.

(c)

ONE Loans

Except as otherwise specified in this part, loans made to borrowers under this part shall be known as Federal ONE Loans.

462.

Funds for the origination of ONE loans

(a)

In general

The Secretary shall provide, on the basis of eligibility of students at each participating institution, and parents of such students, for such loans, funds for student and Parent Loans under this part directly to an institution of higher education that has an agreement with the Secretary under section 464(a) to participate in the Federal ONE Loan Program under this part and that also has an agreement with the Secretary under section 464(b) to originate loans under this part.

(b)

Parallel terms

Subsections (b), (c), and (d) of section 452 shall apply to the loan program under this part in the same manner that such subsections apply to the loan program under part D.

463.

Selection of Institutions for Participation and Origination

(a)

General authority

The Secretary shall enter into agreements pursuant to section 464(a) with institutions of higher education to participate in the Federal ONE Loan Program under this part, and agreements pursuant to section 464(b) with institutions of higher education, to originate loans in such program, for academic years beginning on or after July 1, 2019. Such agreements for the academic year 2019–2020 shall, to the extent feasible, be entered into not later than January 1, 2019.

(b)

Selection criteria and procedure

The application and selection procedure for an institution of higher education desiring to participate in the loan program under this part shall be the application and selection procedure described in section 453(b) for an institution of higher education desiring to participate in the loan program under part D.

(c)

Eligible institutions

The Secretary may not select an institution of higher education for participation under this part unless such institution is an eligible institution under section 487(a).

464.

Agreements with Institutions

(a)

Participation Agreements

An agreement with any institution of higher education for participation in the Federal ONE Loan Program under this part shall—

(1)

provide for the establishment and maintenance of a direct student loan program at the institution under which the institution will—

(A)

identify eligible students who seek student financial assistance at such institution in accordance with section 484;

(B)

provide a statement that certifies the eligibility of any student to receive a loan under this part that is not in excess of the annual or aggregate limit applicable to such loan, except that the institution may, in exceptional circumstances identified by the Secretary pursuant to section 454(a)(1)(C), refuse to certify a statement that permits a student to receive a loan under this part, if the reason for such action is documented and provided in written form to such student;

(C)

set forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 465(a); and

(D)

provide timely and accurate information, concerning the status of student borrowers (and students on whose behalf parents borrow under this part) while such students are in attendance at the institution and concerning any new information of which the institution becomes aware for such students (or their parents) after such borrowers leave the institution, to the Secretary for the servicing and collecting of loans made under this part;

(2)

provide assurances that the institution will comply with requirements established by the Secretary relating to student loan information with respect to loans made under this part;

(3)

provide that the institution accepts responsibility and financial liability stemming from its failure to perform its functions pursuant to the agreement;

(4)

provide for the implementation of a quality assurance system, as established by the Secretary and developed in consultation with institutions of higher education, to ensure that the institution is complying with program requirements and meeting program objectives; and

(5)

provide that the institution will not charge any fees of any kind, however described, to student or parent borrowers for origination activities or the provision of any information necessary for a student or parent to receive a loan under this part, or any benefits associated with such loan.

(b)

Origination

An agreement with any institution of higher education for the origination of loans under this part shall—

(1)

supplement the agreement entered into in accordance with subsection (a);

(2)

include provisions established by the Secretary that are similar to the participation agreement provisions described in paragraphs (2), (3), (4), and (5) of subsection (a), as modified to relate to the origination of loans by the institution;

(3)

provide that the institution will originate loans to eligible students and parents in accordance with this part; and

(4)

provide that the note or evidence of obligation on the loan shall be the property of the Secretary.

(c)

Withdrawal procedures

(1)

In general

An institution of higher education participating in the Federal ONE Loan Program under this part may withdraw from the program by providing written notice to the Secretary of the intent to withdraw not less than 60 days before the intended date of withdrawal.

(2)

Date of withdrawal

Except in cases in which the Secretary and an institution of higher education agree to an earlier date, the date of withdrawal from the Federal ONE Loan Program under this part of an institution of higher education shall be the later of—

(A)

60 days after the institution submits the notice required under paragraph (1); or

(B)

a date designated by the institution.

465.

Disbursement of student loans, loan limits, interest rates, and loan fees

(a)

Requirements for disbursement of student loans

(1)

Multiple disbursement required

(A)

Required disbursements

The proceeds of any loan made under this part that is made for any period of enrollment shall be disbursed as follows:

(i)

The disbursement of the first installment of proceeds shall, with respect to any student other than a student described in subparagraph (B)(i), be made not more than 30 days prior to the beginning of the period of enrollment, and not later than 30 days after the beginning of such period of enrollment.

(ii)

The disbursement of an installment of proceeds shall be made in substantially equal monthly or weekly installments over the period of enrollment for which the loan was made, except that installments may be unequal as necessary to permit the institution to adjust for unequal costs (which may include upfront costs such as tuition and fees) incurred or estimated financial assistance received by the student.

(B)

First-year students

(i)

In general

The first installment of the proceeds of any loan made under this part that is made to a student borrower who is entering the first year of a program of undergraduate education, and who has not previously obtained a loan under this part, shall not (regardless of the amount of such loan or the duration of the period of enrollment) be presented by the institution of higher education to the student for endorsement until 30 days after the borrower begins a course of study, but may be delivered to the eligible institution prior to the end of that 30-day period.

(ii)

Exemption

An institution of higher education in which each educational program has a loan repayment rate (as determined under section 481B(c)) for the most recent fiscal year for which data are available that is greater than 60 percent shall be exempt from the requirements of clause (i).

(2)

Withdrawing of succeeding disbursements

(A)

Withdrawing students

In the case in which the Secretary is informed by the borrower or the institution that the borrower has ceased to be enrolled before the disbursement of the second or any succeeding installment, the Secretary shall withhold such disbursement. Any disbursement which is so withheld shall be credited to the borrower’s loan and treated as a prepayment on the principal of the loan.

(B)

Students receiving over-awards

If the sum of a disbursement for any borrower and the other financial aid obtained by borrower exceeds the amount of assistance for which the borrower is eligible under this title, the institution the borrower, or dependent student, in the case of a parent borrower, is attending shall withhold and return to the Secretary the portion (or all) of such installment that exceeds such eligible amount, except that overawards permitted pursuant to section 443(b)(4) shall not be construed to be overawards for purposes of this subparagraph. Any portion (or all) of a disbursement installment which is so returned shall be credited to the borrower’s loan and treated as a prepayment on the principal of the loan.

(3)

Exclusion of Consolidation and Foreign Study Loans

The provisions of this subsection shall not apply in the case of a Federal ONE Consolidation Loan, or a loan made to a student to cover the cost of attendance in a program of study abroad approved by the home eligible institution if each of the educational programs of such home eligible institution has a loan repayment rate (as calculated under section 481B(c)) for the most recent fiscal year for which data are available of greater than 70 percent.

(4)

Beginning of Period of Enrollment

For purposes of this subsection, a period of enrollment begins on the first day that classes begin for the applicable period of enrollment.

(b)

Amount of loan

(1)

In general

The determination of the amount of a loan disbursed by an eligible institution under this section shall be the lesser of—

(A)

an amount that is equal to the estimated loan amount, as determined by the institution by calculating—

(i)

the estimated cost of attendance at the institution, minus

(ii)
(I)

any estimated financial assistance reasonably available to such student, including assistance that the student will receive from a Federal grant, including a Federal Pell Grant, a State grant, an institutional grant, or a scholarship or grant from another source, that is known to the institution at the time the student’s determination of need is made; and

(II)

in the case of a loan to a parent, the amount of a loan awarded under this part to the parent’s child; or

(B)

the maximum Federal loan amount for which such borrower is eligible in accordance with paragraph (2).

(2)

Loan limits

(A)

Annual limits

Except as provided under subparagraph (B), (C), or (D), the amount of loans made under this part that an eligible student or parent borrower may borrow for an academic year shall be as follows:

(i)

Undergraduate students

With respect to enrollment in a program of undergraduate education at an eligible institution—

(I)

in the case of a dependent student—

(aa)

who has not successfully completed the first year of a program of undergraduate education, $7,500;

(bb)

who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate education, $8,500; and

(cc)

who has successfully completed the first and second years of a program of undergraduate education but has not successfully completed the remainder of such program, $9,500;

(II)

in the case of an independent student, or a dependent student whose parents are unable to borrow a loan under this part on behalf of such student—

(aa)

who has not successfully completed the first year of a program of undergraduate education, $11,500;

(bb)

who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate education, $12,500; and

(cc)

who has successfully completed the first and second years of a program of undergraduate education but has not successfully completed the remainder of such program, $14,500; and

(III)

in the case of a student who is enrolled in a program of undergraduate education that is less than one academic year, the maximum annual loan amount that such student may receive may not exceed the amount that bears the same ratio to the amount specified in subclause (I) or (II), as applicable, as the length of such program measured in semester, trimester, quarter, or clock hours bears to one academic year.

(ii)

Graduate or professional students

In the case of a graduate or professional student for enrollment in a program of graduate or professional education at an eligible institution, $28,500.

(iii)

Parent borrowers

In the case of a parent borrowing a loan under this part on behalf of a dependent student for the student’s enrollment in a program of undergraduate education at an eligible institution, $12,500 per each such student.

(iv)

Coursework for undergraduate enrollment

With respect to enrollment in coursework specified in section 484(b)(3)(B) necessary for enrollment in an undergraduate degree or certificate program—

(I)

in the case of a dependent student, $2,625;

(II)

in the case of a parent borrowing a loan under this part on behalf of a dependent student for the student’s enrollment in such coursework, $6,000; and

(III)

in the case an independent student, or a dependent student whose parents are unable to borrow a loan under this part on behalf of such student, $8,625.

(v)

Coursework for graduate or professional enrollment or teacher employment

With respect to the enrollment of a student who has obtained a baccalaureate degree in coursework specified in section 484(b)(3)(B) necessary for enrollment in a graduate or professional degree or certificate program, or coursework specified in section 484(b)(4)(B) necessary for a professional credential or certification from a State required for employment as a teacher in an elementary or secondary school, in the case of a student (without regard to whether the student is a dependent student or dependent student), $12,500.

(B)

Aggregate limits

Except as provided under subparagraph (C), (D), or (E), the maximum aggregate amount of loans under this part and parts B and D that an eligible student or parent borrower may borrow shall be—

(i)

for enrollment in a program of undergraduate education at an eligible institution, including for enrollment in coursework described in clause (iv) or (v) of subparagraph (A)—

(I)

in the case of a dependent student, $39,000;

(II)

in the case of an independent student, or an dependent student whose parents are unable to receive a loan under this part on behalf of such student, $60,250; and

(III)

in the case of a parent borrowing a loan under this part on behalf of a dependent student for the student’s enrollment in such a program, $56,250 per each such student.; and

(ii)

in the case of a graduate or professional student for enrollment in a program of graduate or professional education at an eligible institution, $150,000.

(C)

Application of limits to borrowers with part B or D loans

(i)

Graduate or professional students

In the case of a graduate or professional student who is not described in subparagraph (E) and who has received loans made under part B or D for enrollment in a graduate or professional program at an eligible institution, the total amount of which equal or exceed $28,500 as of the time of disbursement, the student may continue to borrow the amount of loans under this part necessary to complete such program without regard to the aggregate limit under subparagraph (B)(ii), except that the—

(I)

amount of such loans shall not exceed the annual limits under subparagraph (A)(ii) for any academic year beginning after June 30, 2019; and

(II)

authority to borrow loans in accordance with this subclause shall terminate at the end of the academic year ending before September 30, 2024.

(ii)

Parent borrowers

In the case of a parent borrower who has received loans made under part B or D on behalf of a dependent student for the student’s enrollment in a program of undergraduate education at an eligible institution, the total amount of which equal or exceed $12,500 for such student as of the time of disbursement, the parent borrower may continue to borrow the amount of loans under this part necessary for such student to complete such program without regard to the aggregate limit under subparagraph (B)(i)(III), except that the—

(I)

amount of such loans shall not exceed the annual limits under subparagraph (A)(iii) for any academic year beginning after June 30, 2019; and

(II)

the authority to borrow loans in accordance with this subclause shall terminate at the end of the academic year ending before September 30, 2024.

(D)

Institutional determined limits

(i)

In general

Notwithstanding any other provision of this subsection, an eligible institution (at the discretion of a financial aid administrator at the institution) may prorate or limit the amount of a loan any student enrolled in a program of study at that institution may borrow under this part for an academic year—

(I)

if the institution, using the most recently available data from the Bureau of Labor Statistics for the average starting salary in the region in which the institution is located for typical occupations pursued by graduates of such program, can reasonably demonstrate that student debt levels are or would be excessive for such program;

(II)

in a case in which the student is enrolled on a less than full-time basis or the student is enrolled for less than the period of enrollment to which the annual loan limit applies under this subsection, based on the student’s enrollment status;

(III)

based on the credential level (such as a degree, certificate, or other recognized educational credential) that the student would attain upon completion of such program; or

(IV)

based on the year of the program for which the student is seeking such loan.

(ii)

Application to all students

Any proration or limiting of loan amounts under clause (i) shall be applied in the same manner to all students enrolled in the institution or program of study.

(iii)

Increases for Individual Students

Upon the request of a student whose loan amount for an academic year has been prorated or limited under clause (i), an eligible institution (at the discretion of the financial aid administrator at the institution) may increase such loan amount to an amount not exceeding the annual loan amount applicable to such student under this subparagraph for such academic year if such student demonstrates special circumstances or exceptional need.

(E)

Increases for certain graduate or professional students

(i)

Additional annual amounts

Subject to clause (iii) of this subparagraph, in addition to the loan amount for an academic year described in subparagraph (A)(ii)—

(I)

a graduate or professional student who is enrolled in a program of study to become a doctor of allopathic medicine, doctor of osteopathic medicine, doctor of dentistry, doctor of veterinary medicine, doctor of optometry, doctor of podiatric medicine, doctor of naturopathic medicine, or doctor of naturopathy may borrow an additional—

(aa)

in the case of a program with a 9-month academic year, $20,000 for an academic year; or

(bb)

in the case of a program with a 12-month academic year, $26,667 for an academic year; and

(II)

a graduate or professional student who is enrolled in a program of study to become a doctor of pharmacy, doctor of chiropractic medicine, or a physician’s assistant, or receive a graduate degree in public health, doctoral degree in clinical psychology, or a masters or doctoral degree in health administration may borrow an additional—

(aa)

in the case of a program with a 9-month academic year, $12,500 for an academic year; or

(bb)

in the case of a program with a 12-month academic year, $16,667 for an academic year.

(ii)

Aggregate limit

Subject to clause (iii) of this subparagraph, the maximum aggregate amount of loans under this part and parts B and D that a student described in clause (i) may borrow shall be $235,500.

(iii)

Limitation

In the case of a graduate or professional student described in clause (i) of this subparagraph who has received loans made under part B or D for enrollment in a graduate or professional program at an eligible institution, the total amount of which equal or exceed $34,000 as of the time of disbursement, the student may continue to borrow the amount of loans under this part necessary to complete such program without regard to the aggregate limit under clause (ii) of this subparagraph, except that the—

(I)

amount of such loans shall not exceed the annual limits under clause (i) of this subparagraph for any academic year beginning after June 30, 2019; and

(II)

authority to borrow loans in accordance with this subclause shall terminate at the end of the academic year ending before September 30, 2024.

(c)

Interest rate provisions for Federal ONE Loans

(1)

Undergraduate One Loans

For Federal ONE Loans issued to undergraduate students, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—

(A)

a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 2.05 percent; or

(B)

8.25 percent.

(2)

Graduate and Professional One Loans

For Federal ONE Loans issued to graduate or professional students, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—

(A)

a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 3.6 percent; or

(B)

9.5 percent.

(3)

Parent One Loans

For Federal ONE Parent Loans, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—

(A)

a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 4.6 percent; or

(B)

10.5 percent.

(4)

Consolidation Loans

Any Federal ONE Consolidation Loan for which the application is received on or after July 1, 2019, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent.

(5)

Publication

The Secretary shall determine the applicable rates of interest under this subsection after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.

(6)

Rate

The applicable rate of interest determined under this subsection for a loan under this part shall be fixed for the period of the loan.

(d)

Prohibition on certain repayment incentives

Notwithstanding any other provision of this part, the Secretary is prohibited from authorizing or providing any repayment incentive or subsidy not otherwise authorized under this part to encourage on-time repayment of a loan under this part, including any reduction in the interest paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction of not more than 0.25 percentage points for a borrower who agrees to have payments on such a loan automatically debited from a bank account.

(e)

Loan fee

The Secretary shall not charge the borrower of a loan made under this part an origination fee.

(f)

Armed forces student loan interest payment program

(1)

Authority

Using funds received by transfer to the Secretary under section 2174 of title 10, United States Code, for the payment of interest on a loan made under this part to a member of the Armed Forces, the Secretary shall pay the interest on the loan as due for a period not in excess of 36 consecutive months. The Secretary may not pay interest on such a loan out of any funds other than funds that have been so transferred.

(2)

Deferment

During the period in which the Secretary is making payments on a loan under paragraph (1), the Secretary shall grant the borrower administrative deferment, in the form of a temporary cessation of all payments on the loan other than the payments of interest on the loan that are made under that paragraph.

(g)

No accrual of interest for active duty service members

(1)

In General

Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), interest shall not accrue for an eligible military borrower on a loan made under this part.

(2)

Consolidation loans

In the case of any consolidation loan made under this part, interest shall not accrue pursuant to this subsection only on such portion of such loan as was used to repay a loan made under this part or a loan made under part D for which the first disbursement was made on or after October 1, 2008, and before July 1, 2019.

(3)

Eligible military borrower

In this subsection, the term eligible military borrower means an individual who—

(A)
(i)

is serving on active duty during a war or other military operation or national emergency; or

(ii)

is performing qualifying National Guard duty during a war or other military operation or national emergency; and

(B)

is serving in an area of hostilities in which service qualifies for special pay under section 310 of title 37, United States Code.

(4)

Limitation

An individual who qualifies as an eligible military borrower under this subsection may receive the benefit of this subsection for not more than 60 months.

466.

Repayment

(a)

Repayment period; commencement of repayment

(1)

Repayment period

(A)

In general

In the case of a Federal ONE Loan—

(i)

subject to clause (ii), the repayment period shall—

(I)

exclude any period of authorized deferment under section 469A; and

(II)

begin the day after 6 months after the date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution); and

(ii)

interest shall begin to accrue or be paid by the borrower on the day the loan is disbursed.

(B)

Consolidation and Parent Loans

In the case of a Federal ONE Consolidation Loan or a Federal ONE Parent Loan, the repayment period shall—

(i)

exclude any period of authorized deferment; and

(ii)

begin—

(I)

on the day the loan is disbursed; or

(II)

if the loan is disbursed in multiple installments, on the day of the last such disbursement.

(C)

Active duty exclusion

There shall be excluded from the 6-month period that begins on the date on which a student ceases to carry at least one-half the normal full-time academic workload as described in subparagraph (A) any period not to exceed 3 years during which a borrower who is a member of a reserve component of the Armed Forces named in section 10101 of title 10, United States Code, is called or ordered to active duty for a period of more than 30 days (as defined in section 101(d)(2) of such title). Such period of exclusion shall include the period necessary to resume enrollment at the borrower’s next available regular enrollment period.

(2)

Payment of Principal and Interest

(A)

Commencement of repayment

Repayment of principal on loans made under this part shall begin at the beginning of the repayment period described in paragraph (1).

(B)

Capitalization of interest

(i)

In general

Interest on loans made under this part for which payments of principal are not required during the 6-month period described in paragraph (1)(A)(i)(II) or for which payments are deferred under section 469A shall—

(I)

be paid monthly or quarterly; or

(II)

be added to the principal amount of the loan only—

(aa)

when the loan enters repayment;

(bb)

at the expiration of a the 6-month period described in paragraph (1)(A)(i)(II);

(cc)

at the expiration of a period of deferment, unless otherwise exempted; or

(dd)

when the borrower defaults.

(ii)

Maximum aggregate limit

Interest capitalized shall not be deemed to exceed the amount equal to the maximum aggregate limit of the loan under section 465(b).

(C)

Notice

Not less than 60 days, and again not less than 30 days, prior to the anticipated commencement of the repayment period for a Federal ONE Loan, the Secretary shall provide notice to the borrower—

(i)

that interest will accrue before repayment begins;

(ii)

that interest will be added to the principal amount of the loan in the cases described in subparagraph (B)(i)(II); and

(iii)

of the borrower’s option to begin loan repayment prior to such repayment period.

(b)

Repayment amount

(1)

In general

The total of the payments by a borrower, except as otherwise provided by an income-based repayment plan under subsection (d), during any year of any repayment period with respect to the aggregate amount of all loans made under this part to the borrower shall not (unless the borrower and the Secretary otherwise agree), be less than $600 or the balance of all such loans (together with interest thereon), whichever amount is less (but in no instance less than the amount of interest due and payable, notwithstanding any repayment plan described in subsection (c)).

(2)

Amortization

(A)

Interest rate

The amount of the periodic payment and the repayment schedule for a loan made under this part shall be established by assuming an interest rate equal to the applicable rate of interest at the time of the first disbursement of the loan.

(B)

Adjustment to repayment amount

The note or other written evidence of a loan under this part shall require that the amount of the periodic payment will be adjusted annually in order to reflect adjustments in—

(i)

interest rates occurring as a consequence of variable rate loans under parts B or D paid in conjunction with Federal ONE Loans under subsection (d)(1)(B)(i); or

(ii)

principal occurring as a consequence of interest capitalization under subsection (a)(2)(B).

(c)

Repayment plans

(1)

Design and selection

Not more than 6 months prior to the date on which a borrower’s first payment on a loan made under this part is due, the Secretary shall offer the borrower two plans for repayment of such loan, including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on the borrower’s loans under this part. The borrower may choose—

(A)

a standard repayment plan with a fixed monthly repayment amount paid over a fixed period of time, not to exceed 10 years; or

(B)

an income-based repayment plan under subsection (d).

(2)

Selection by secretary

If a borrower of a loan made under this part does not select a repayment plan described in paragraph (1), the Secretary shall provide the borrower with the repayment plan described in paragraph (1)(A).

(3)

Changes in selections

(A)

In general

Subject to subparagraph (B), the borrower of a loan made under this part may change the borrower’s selection of a repayment plan under paragraph (1), or the Secretary’s selection of a plan for the borrower under paragraph (2), as the case may be, under such terms and conditions as may be established by the Secretary, except that the Secretary may not establish any terms or conditions with respect to whether a borrower may change the borrower’s repayment plan. Nothing in this subsection shall prohibit the Secretary from encouraging struggling borrowers from enrolling in the income-driven repayment plan described in section 466(d).

(B)

Same repayment plan required

All loans made under this part to a borrower shall be repaid under the same repayment plan under paragraph (1), except that the borrower may repay a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan (as defined in subsection (d)(5)) separately from other loans made under this part to the borrower.

(4)

Repayment after default

The Secretary may require any borrower who has defaulted on a loan made under this part to—

(A)

pay all reasonable collection costs associated with such loan; and

(B)

repay the loan pursuant to the income-based repayment plan under subsection (d).

(5)

Repayment period

For purposes of calculating the repayment period under this subsection, such period shall commence at the time the first payment of principal is due from the borrower.

(6)

Installments

Repayment of loans under this part shall be in installments in accordance with the repayment plan selected under paragraph (1) and commencing at the beginning of the repayment period determined under paragraph (5).

(d)

Income-Based repayment program

(1)

In general

Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which—

(A)

a borrower of any loan made under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan) may elect to have the borrower’s aggregate monthly payment for all such loans—

(i)

not to exceed the result obtained by dividing by 12, 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—

(I)

the adjusted gross income of the borrower or, if the borrower is married and files a Federal income tax return jointly with or separately from the borrower’s spouse, the adjusted gross income of the borrower and the borrower's spouse, exceeds

(II)

150 percent of the poverty line applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)); and

(ii)

not to be less than $25;

(B)

the Secretary adjusts the calculated monthly payment under subparagraph (A), if—

(i)

in addition to the loans described in subparagraph (A), the borrower has an outstanding loan made under part B or D (other than an excepted parent loan or an excepted consolidation loan, as such terms are defined in section 493C(a)), by determining the borrower’s adjusted monthly payment by multiplying—

(I)

the calculated monthly payment, by

(II)

the percentage of the total outstanding principal amount of the borrower’s loans described in the matter preceding subclause (I), which are described in subparagraph (A);

(ii)

the borrower and borrower’s spouse have loans described in subparagraph (A) and outstanding loans under part B or D (other than an excepted parent loan or an excepted consolidation loan, as such terms are defined in section 493C(a)) and have filed a joint or separate Federal income tax return, in which case the Secretary determines—

(I)

each borrower’s percentage of the couple’s total outstanding amount of principal on such loans;

(II)

the adjusted monthly payment for each borrower by multiplying the borrower’s calculated monthly payment by the percentage determined under subclause (I) applicable to the borrower; and

(III)

if the borrower’s loans are held by multiple holders, the borrower’s adjusted monthly payment for loans described in subparagraph (A) by multiplying the adjusted monthly payment determined under subclause (II) by the percentage of the total outstanding principal amount of the borrower’s loans described in the matter preceding subclause (I), which are described in subparagraph (A);

(C)

the holder of such a loan shall apply the borrower’s monthly payment under this subsection first toward interest due on the loan, next toward any fees due on the loan, and then toward the principal of the loan;

(D)

any principal due and not paid under subparagraph (C) shall be deferred;

(E)

any interest due and not paid under subparagraph (C) shall be capitalized, at the time the borrower—

(i)

ends the election to make income-based repayment under this subsection; or

(ii)

begins making payments of not less than the amount specified in subparagraph (G)(i);

(F)

the amount of time the borrower makes monthly payments under subparagraph (A) may exceed 10 years;

(G)

if the borrower no longer wishes to continue the election under this subsection, then—

(i)

the maximum monthly payment required to be paid for all loans made to the borrower under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan) shall not exceed the monthly amount calculated under subsection (c)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection; and

(ii)

the amount of time the borrower is permitted to repay such loans may exceed 10 years;

(H)

the Secretary shall cancel any outstanding balance (other than an amount equal to the interest accrued during any period of in-school deferment under subparagraph (A), (B), or (F) of section 469A(b)(1)) due on all loans made under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan) to a borrower—

(i)

who, at any time, elected to participate in income-based repayment under subparagraph (A);

(ii)

whose final monthly payment for such loans prior to the loan cancellation under this subparagraph was made under such income-based repayment; and

(iii)

who has repaid, pursuant to income-based repayment under subparagraph (A), a standard repayment plan under subsection (c)(1)(A), or a combination—

(I)

an amount of principal and interest on such loans that is equal to the total amount of principal and interest that the borrower would have repaid under a standard repayment plan under subsection (c)(1)(A), based on a 10-year repayment period, when the borrower entered repayment on such loans; and

(II)

the amount of interest that accrues during a period of deferment described in section 469A prior to the completion of the repayment period described in subclause (I) on the portion of such loans remaining to be repaid in accordance with such subclause; and

(I)

a borrower who is repaying a loan made under this part pursuant to income-based repayment under subparagraph (A) may elect, at any time during the 10-year period beginning on the date the borrower entered repayment on the loan, to terminate repayment pursuant to such income-based repayment and repay such loan under the standard repayment plan.

(2)

Eligibility determinations

(A)

In general

The Secretary shall establish procedures for annual verification of a borrower’s annual income and the annual amount due on the total amount of loans made under this part (other than a Federal ONE Parent Loan or an Excepted Federal ONE Consolidation Loan), and such other procedures as are necessary to implement effectively income-based repayment under this subsection, including the procedures established with respect to section 493C.

(B)

Income information

The Secretary may obtain such information as is reasonably necessary regarding the income of a borrower (and the borrower's spouse, if applicable) of a loan made under this part that is, or may be, repaid pursuant to income-based repayment under this subsection, for the purpose of determining the annual repayment obligation of the borrower. The Secretary shall establish procedures for determining the borrower’s repayment obligation on that loan for such year, and such other procedures as are necessary to implement effectively the income-based repayment under this subsection.

(C)

Borrower requirements

A borrower who chooses to repay a loan made under this part pursuant to income-based repayment under this subsection, and—

(i)

for whom adjusted gross income is available and reasonably reflects the borrower's current income, shall, to the maximum extent practicable, provide to the Secretary the Federal tax information of the borrower; and

(ii)

for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine an appropriate repayment schedule.

(3)

Notification to borrowers

The Secretary shall establish procedures under which a borrower of a loan made under this part who chooses to repay such loan pursuant to income-based repayment under this subsection is notified of the terms and conditions of such plan, including notification that if a borrower considers that special circumstances, such as a loss of employment by the borrower or the borrower's spouse, warrant an adjustment in the borrower's loan repayment as determined using the borrower’s Federal tax return information, or the alternative documentation described in paragraph (2)(C), the borrower may contact the Secretary, who shall determine whether such adjustment is appropriate, in accordance with criteria established by the Secretary.

(4)

Reduced payment periods

(A)

In general

The Secretary shall authorize borrowers meeting the criteria under subparagraph (B) to make monthly payments of $5 for a period not in excess of 3 years, except that—

(i)

for purposes of subparagraph (B)(i), the Secretary may authorize reduced payments in 6-month increments, beginning on the date the borrower provides to the Secretary the evidence described in subclause (I) or (II) of subparagraph (B)(i); and

(ii)

for purposes of subparagraph (B)(ii), the Secretary may authorize reduced payments in 3-month increments, beginning on the date the borrower provides to the Secretary the evidence described in subparagraph (B)(ii)(I).

(B)

Eligibility determinations

The Secretary shall authorize borrowers to make reduced payments under this paragraph in the following circumstances:

(i)

In a case of borrower who is seeking and unable to find full-time employment, as demonstrated by providing to the Secretary—

(I)

evidence of the borrower’s eligibility for unemployment benefits to the Secretary; or

(II)

a written certification or an equivalent that—

(aa)

the borrower has registered with a public or private employment agency that is available to the borrower within a 50-mile radius of the borrower’s home address; and

(bb)

in the case of a borrower that has been granted a request under this subparagraph, the borrower has made at least six diligent attempts during the preceding six-month period to secure full-time employment.

(ii)

The Secretary determines that, due to high medical expenses, the $25 monthly payment the borrower would otherwise make would be an extreme economic hardship to the borrower, if—

(I)

the borrower documents the reason why the $25 minimum payment is an extreme economic hardship; and

(II)

the borrower recertifies the reason for the $5 minimum payment on a three-month basis.

(C)

Definition

For purpose of this section, the term full-time employment means employment that will provide not less than 30 hours of work a week and is expected to continue for a period of not less than 3 months.

(5)

Definitions

In this subsection:

(A)

Adjusted gross income

The term adjusted gross income has the meaning given the term in section 62 of the Internal Revenue Code of 1986.

(B)

Excepted Federal ONE Consolidation Loan

The term Excepted Federal ONE Consolidation Loan means a Federal ONE Consolidation Loan if the proceeds of such loan were used to discharge the liability on—

(i)

a Federal ONE Parent Loan;

(ii)

a Federal Direct PLUS Loan, or a loan under section 428B, that is made, insured, or guaranteed on behalf of a dependent student;

(iii)

an excepted consolidation loan (defined in section 493C); or

(iv)

a Federal ONE Consolidation loan that was used to discharge the liability on a loan described in clause (i), (ii), or (iii).

(e)

Rules of construction

Nothing in this section shall be construed to authorize, with respect to loans made under this part—

(1)

eligibility for a repayment plan that is not described in subsection (c)(1) or section 468(c); or

(2)

the Secretary to—

(A)

carry out a repayment plan, which is not described in subsection (c)(1) or section 468(c); or

(B)

modify a repayment plan that is described in subsection (c)(1) or section 468(c) in a manner that results in any net cost to the Federal Government, as determined jointly by the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget.

467.

Federal ONE Parent Loans

(a)

Authority To Borrow

(1)

Authority and eligibility

The parent of a dependent student shall be eligible to borrow funds under this section in amounts specified in subsection (b), if—

(A)

the parent is borrowing to pay for the educational costs of a dependent student who meets the requirements for an eligible student under section 484(a);

(B)

the parent meets the applicable requirements concerning defaults and overpayments that apply to a student borrower;

(C)

the parent complies with the requirements for submission of a statement of educational purpose that apply to a student borrower under section 484(a)(4)(A) (other than the completion of a statement of selective service registration status);

(D)

the parent meets the requirements that apply to a student under section 437(a);

(E)

the parent—

(i)

does not have an adverse credit history; or

(ii)

has an adverse credit history, but has—

(I)

obtained an endorser who does not have an adverse credit history or documented to the satisfaction of the Secretary that extenuating circumstances exist in accordance with paragraph (4)(D); and

(II)

completed Federal ONE Parent Loan counseling offered by the Secretary; and

(F)

in the case of a parent who has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, such parent has completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this title obtained by fraud.

(2)

Terms, conditions, and benefits

Except as provided in subsections (c), (d), and (e), loans made under this section shall have the same terms, conditions, and benefits as all other loans made under this part.

(3)

Parent borrowers

(A)

Definition

For purposes of this section, the term parent includes a student’s biological or adoptive mother or father or the student’s stepparent, if the biological parent or adoptive mother or father has remarried at the time of filing the common financial reporting form under section 483(a), and that spouse’s income and assets would have been taken into account when calculating the student's expected family contribution.

(B)

Clarification

Whenever necessary to carry out the provisions of this section, the terms student and borrower as used in this part shall include a parent borrower under this section.

(4)

Adverse credit history definitions and adjustments

(A)

Definitions

For purposes of this section:

(i)

In general

The term adverse credit history, when used with respect to a borrower, means that the borrower—

(I)

has one or more debts with a total combined outstanding balance equal to or greater than $2,085, as may be adjusted by the Secretary in accordance with subparagraph (B), that—

(aa)

are 90 or more days delinquent as of the date of the credit report; or

(bb)

have been placed in collection or charged off during the two years preceding the date of the credit report; or

(II)

has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt under this title during the 5 years preceding the date of the credit report.

(ii)

Charged off

The term charged off means a debt that a creditor has written off as a loss, but that is still subject to collection action.

(iii)

In collection

The term in collection means a debt that has been placed with a collection agency by a creditor or that is subject to more intensive efforts by a creditor to recover amounts owed from a borrower who has not responded satisfactorily to the demands routinely made as part of the creditor’s billing procedures.

(B)

Adjustments

(i)

In general

In a case of a borrower with a debt amount described in subparagraph (A)(i), the Secretary shall increase such debt amount, or its inflation-adjusted equivalent, if the Secretary determines that an inflation adjustment to such debt amount would result in an increase of $100 or more to such debt amount.

(ii)

Inflation adjustment

In making the inflation adjustment under clause (i), the Secretary shall—

(I)

use the annual average percent change of the All Items Consumer Price Index for All Urban Consumers, before seasonal adjustment, as the measurement of inflation; and

(II)

if the adjustment calculated under subclause (I) is equal to or greater than $100—

(aa)

add the adjustment to the debt amount, or its inflation-adjusted equivalent; and

(bb)

round up to the nearest $5.

(iii)

Publication

The Secretary shall publish a notice in the Federal Register announcing any increase to the threshold amount specified in subparagraph (A)(i)(I).

(C)

Treatment of absence of credit history

For purposes of this section, the Secretary shall not consider the absence of a credit history as an adverse credit history and shall not deny a Federal ONE Parent loan on that basis.

(D)

Extenuating circumstances

For purposes of this section, the Secretary may determine that extenuating circumstances exist based on documentation that may include—

(i)

an updated credit report for the parent; or

(ii)

a statement from the creditor that the parent has repaid or made satisfactory arrangements to repay a debt that was considered in determining that the parent has an adverse credit history

(b)

Limitation based on need

Any loan under this section may be counted as part of the expected family contribution in the determination of need under this title, but no loan may be made to any parent under this section for any academic year in excess of the lesser of—

(1)

the student’s estimated cost of attendance minus the student’s estimated financial assistance (as calculated under section 465(b)(1)(A)); or

(2)

the established annual loan limits for such loan under section 465(b).

(c)

Parent Loan Disbursement

All loans made under this section shall be disbursed in accordance with the requirements of section 465(a) and shall be disbursed by—

(1)

an electronic transfer of funds from the lender to the eligible institution; or

(2)

a check copayable to the eligible institution and the parent borrower.

(d)

Payment of Principal and Interest

(1)

Commencement of repayment

Repayment of principal on loans made under this section shall commence not later than 60 days after the date such loan is disbursed by the Secretary, subject to deferral—

(A)

during any period during which the parent borrower meets the conditions required for a deferral under section 469A; and

(B)

upon the request of the parent borrower, during the 6-month period beginning, if the parent borrower is also a student, the day after the date such parent borrower ceases to carry at least one-half such a workload.

(2)

Maximum repayment period

The maximum repayment period for a loan made under this section shall be a 10-year period beginning on the commencement of such period described in paragraph (1).

(3)

Capitalization of interest

Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall, if agreed upon by the borrower and the Secretary—

(A)

be paid monthly or quarterly; or

(B)

be added to the principal amount of the loan not more frequently than quarterly by the Secretary.

(4)

Applicable rates of interest

Interest on loans made pursuant to this section shall be at the applicable rate of interest provided in section 465(c)(3) for loans made under this section.

(5)

Amortization

Section 466(b)(2) shall apply to each loan made under this section.

(e)

Verification of Immigration Status and Social Security Number

A parent who wishes to borrow funds under this section shall be subject to verification of the parent's—

(1)

immigration status in the same manner as immigration status is verified for students under section 484(g); and

(2)

Social Security number in the same manner as Social Security numbers are verified for students under section 484(p).

(f)

Designation

For purposes of this Act, loans described in this section shall be known as Federal ONE Parent Loans.

468.

Federal ONE Consolidation Loans

(a)

Terms and conditions

In making consolidation loans under this section, the Secretary shall—

(1)

not make such a loan to an eligible borrower, unless the Secretary has determined, in accordance with reasonable and prudent business practices, for each loan being consolidated, that the loan—

(A)

is a legal, valid, and binding obligation of the borrower; and

(B)

was made and serviced in compliance with applicable laws and regulations;

(2)

ensure that each consolidation loan made under this section will bear interest, and be subject to repayment, in accordance with subsection (c), except as otherwise provided under subsections (f) and (g) of section 465;

(3)

ensure that each consolidation loan will be made, notwithstanding any other provision of this part limiting the annual or aggregate principal amount for all loans made to a borrower, in an amount which is equal to the sum of the unpaid principal and accrued unpaid interest and late charges of all eligible student loans received by the eligible borrower which are selected by the borrower for consolidation;

(4)

ensure that the proceeds of each consolidation loan will be paid by the Secretary to the holder or holders of the loans so selected to discharge the liability on such loans;

(5)

disclose to a prospective borrower, in simple and understandable terms, at the time the Secretary provides an application for a consolidation loan—

(A)

with respect to a loan made, insured, or guaranteed under this part, part B, or part D, that if a borrower includes such a loan in the consolidation loan—

(i)

that the consolidation would result in a loss of loan benefits; and

(ii)

which specific loan benefits the borrower would lose, including the loss of eligibility for loan forgiveness (including loss of eligibility for interest rate forgiveness), cancellation, deferment, forbearance, interest-free periods, or loan repayment programs that would have been available for such a loan; and

(B)

with respect to Federal Perkins Loans under this part (as this part was in effect on the day before the date of enactment of the PROSPER Act)—

(i)

that if a borrower includes such a Federal Perkins Loan in the consolidation loan, the borrower will lose all interest-free periods that would have been available for the Federal Perkins Loan, such as—

(I)

the periods during which no interest accrues on such loan while the borrower is enrolled in an institution of higher education at least half-time;

(II)

the grace period under section 464(c)(1)(A) (as such section was in effect on the day before the date of enactment of the PROSPER Act); and

(III)

the periods during which the borrower's student loan repayments are deferred under section 464(c)(2) (as such section was in effect on the day before the date of enactment of the PROSPER Act); and

(ii)