,i #aacth ,,congress #ast ,session ,h4 ,r4 #cdj ,,in ,,the ,,house ,,of ,,representatives ,january #bb1 #bjac ,mr4 ,grijalva 7for himself1 ,mr4 ,conyers1 and ,mr4 ,cummings7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce ,a ,,bill ,to amend the ,higher ,education ,opportunity ,act to restrict institutions of higher education from using revenues derived from ,federal educational assistance funds for advertising1 marketing1 or recruiting purposes4 #a4 ,short title ,this ,act may be cited as the ,protecting ,financial ,aid for ,students and ,taxpayers ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,from #aiih to #bjjh1 enrollment in for-profit institutions of higher education increased by #bbe percent1 from #eec1jjj students to #a1hjj1jjj students4 7#b7 ,on average1 #hf percent of revenues at #ae large1 publicly traded companies that operate for-profit institutions of higher education came from the ,federal ,government through student aid programs4 7#c7 ,in #bjji1 students who enrolled at for-profit institutions of higher education received #cj1jjj1jjj1jjj in ,federal ,pell ,grants and student loans4 7#d7 ,eight out of the #aj top recipients of ,post-#i_/aa ,educational ,assistance funds are for-profit institutions of higher education4 ,for-profit colleges received #cg percent 7#d1djj1jjj1jjj7 of all ,post-#i_/aa ,educational ,assistance funds during the #b-year period of ,august #a1 #bjji through ,july #cj1 #bjaa4 7#e7 ,six of the top #aj military tuition assistance recipients are for-profit institutions of higher education4 ,for-profit colleges received half of all tuition assistance dollars--#bhj1jjj1jjj out of #efc1jjj1jjj spent last year4 7#f7 ,the #ae companies that received #hf percent of their revenues from ,federal student aid programs spent #c1gjj1jjj1jjj 7#bc percent of expenditures7 on advertising1 marketing1 and recruitment in fiscal year #bjji4 7#g7 ,according to documents obtained by the ,committee on ,health1 ,education1 ,labor and ,pensions of the ,senate 7referred to in this ,act as the ,,help ,committee71 #cj companies operating for-profit institutions of higher education spent #d1ajj1jjj1jjj on advertising1 marketing1 and recruitment in fiscal year #bjji4 7#h7 ,an analysis of #h publicly traded companies that operate institutions of higher education shows that1 on average1 they spend #ca percent of expenditures on advertising1 marketing1 and recruiting4 7#i7 ,documents obtained by the ,,help ,committee reveal that for-profit institutions of higher education have created sophisticated marketing plans and employed many third parties as well as large sales forces specifically tasked with enrolling as many students as possible1 including veterans1 servicemembers1 and their families4 7#aj7 ,in #bjaj1 an undercover investigation by the ,government ,accountability ,office documented misleading and deceptive recruitment practices at each of #ae for-profit institutions of higher education campuses visited4 ,misleading statements included information regarding the cost of attendance1 transferability of credits1 loan repayment by future employers1 job placement1 and likelihood of graduation4 7#aa7 ,documents produced to the ,,help ,committee demonstrate that revenue from ,federal funds is used to pay recruiters1 who1 at some for-profit institutions of higher education1 are trained to exploit emotional vulnerabilities of prospective students to meet enrollment thresholds4 7#ab7 ,documents produced to the ,,help ,committee demonstrate that revenues from ,federal funds are used to pay very large sales staff titled enrollment advisors1 including #h1acg1 #e1ffi and #c1jfi of such individuals at #c large for-profit companies4 7#ac7 ,the number of enrollment advisors at several for-profit institutions of higher education examined by the ,,help ,committee are very disproportionate with the number of staff engaged in all student support services1 including job placement1 which were #c1gcg1 #b1ehb and #b1dgb at the same #c for-profit companies4 #c4 ,restrictions on sources of funds for recruiting and marketing activities ,section #aai of the ,higher ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajaam7 is amended-- 7#a7 in the section heading1 by inserting and ,restrictions on ,sources of ,funds for ,recruiting and ,marketing ,activities after ,funds2 7#b7 in subsection 7d71 by striking subsections 7a7 through 7c7 and inserting subsections 7a71 7b71 7c71 and 7e72 7#c7 by redesignating subsection 7e7 as subsection 7f72 and 7#d7 by inserting after subsection 7d7 the following3 7e7 ,restrictions on sources of funds for recruiting and marketing activities 7#a7 ,in general ,an institution of higher education1 or other postsecondary educational institution1 may not use revenues derived from ,federal educational assistance funds for recruiting or marketing activities described in paragraph 7#b74 7#b7 ,covered activities ,except as provided in paragraph 7#c71 the recruiting and marketing activities subject to paragraph 7#a7 shall include the following3 7,a7 ,advertising and promotion activities1 including paid announcements in newspapers1 magazines1 radio1 television1 billboards1 electronic media1 naming rights1 or any other public medium of communication1 including paying for displays or promotions at job fairs1 military installations1 or college recruiting events4 7,b7 ,efforts to identify and attract prospective students1 either directly or through a contractor or other third party1 including contact concerning a prospective student's potential enrollment or application for grant1 loan1 or work assistance under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 or participation in preadmission or advising activities1 including-- 7i7 paying employees responsible for overseeing enrollment and for contacting potential students in-person1 by phone1 by email1 or by other internet communications regarding enrollment2 and 7ii7 soliciting an individual to provide contact information to an institution of higher education1 including websites established for such purpose and funds paid to third parties for such purpose4 7,c7 ,such other activities as the ,secretary of ,education may prescribe1 including paying for promotion or sponsorship of education or military-related associations4 7#c7 ,exceptions ,any activity that is required as a condition of receipt of funds by an institution under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq471 is specifically authorized under such title1 or is otherwise specified by the ,secretary of ,education1 shall not be considered to be a covered activity under paragraph 7#b74 7#d7 ,federal educational assistance funds ,in this subsection1 the term ,federal educational assistance funds means funds provided directly to an institution or to a student attending such institution under any of the following provisions of law3 7,a7 ,title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq474 7,b7 ,chapter #cj1 #ca1 #cb1 #cc1 #cd1 or #ce of title #ch1 ,united ,states ,code4 7,c7 ,chapter #aja1 #aje1 #ajf;,a1 #afjf1 #afjg1 or #afjh of title #aj1 ,united ,states ,code4 7,d7 ,section #aghd;a1 #bjje1 or #bjjg of title #aj1 ,united ,states ,code4 7,e7 ,title ,i of the ,workforce ,investment ,act of #aiih 7#bi ,u4,s4,c4 #bhja et seq474 7,f7 ,the ,adult ,education and ,family ,literacy ,act 7#bj ,u4,s4,c4 #ibja et seq474 7#e7 ,rule of construction ,nothing in this section shall be construed as a limitation on the use by an institution of revenues derived from sources other than ,federal educational assistance funds4 7#f7 ,reporting ,each institution of higher education1 or other postsecondary educational institution1 that receives revenues derived from ,federal educational assistance funds shall report annually to the ,secretary and to ,congress the institution's expenditures on advertising1 marketing1 and recruiting4 4