,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #efgd  ,,in ,,the ,,house ,,of  
,,representatives  ,september #ai1 #bjad
 ,mr4 ,himes introduced the following   
bill2 which was referred to the         
,committee on ,education and the        
,workforce  ,a ,,bill  ,to provide for  
higher education reform4  #a4 ,short    
title ,this ,act may be cited as the    
,college ,affordability and ,innovation 
,act of #bjad4  #b4 ,definitions ,in    
this ,act3  7#a7 ,authorizing committees
 ,the term authorizing committees means 
the ,committee on ,health1 ,education1  
,labor1 and ,pensions of the ,senate and
 the ,committee on ,education and the   
,workforce of the ,house of             
,representatives4  7#b7 ,secretary ,the 
term ,secretary means the ,secretary of 
,education4  #c4 ,pilot program to      
promote innovation in higher education  
7a7 ,purpose2 definition  7#a7 ,purpose 
,the purpose of this section is to      
authorize an evidence-based grant       
program to promote greater              

experimentation among institutions of   
higher education to increase the level  
of student attainment of postsecondary  
and graduate certificates and degrees   
through innovative programs designed to 
decrease the cost and time required to  
complete postsecondary and graduate     
programs while improving the quality and
 effectiveness of postsecondary         
education programs1 providing           
accelerated degree or certificate       
programs1 and increasing on-time        
graduation rates4  7#b7 ,institution of 
higher education ,in this section1 the  
term institution of higher education has
 the meaning given the term in section  
#ajb of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajjb74  7b7       
,incentive grants for innovative        
programs that improve quality and       
affordability  7#a7 ,in general  7,a7   
,grants ,the ,secretary shall1 for a    
#e-year award term1 award grants to not 
more than #ae institutions of higher    
education1 through a competitive process

 described in this section1 to enable   
the institutions to carry out programs  
designed to graduate students with      
certificates or degrees at significantly
 lower costs for students and within    
shorter time periods than traditional   
programs while improving the quality and
 effectiveness of the programs4  7,b7   
,good standing requirement ,only those  
institutions of higher education that   
are in good standing with the           
administration of their student         
assistance programs under title ,,iv of 
the ,higher ,education ,act of #aife    
7#bj ,u4,s4,c4 #ajgj et seq47 shall be  
eligible to receive grants under        
subparagraph 7,a74  7#b7 ,distribution  
of grant funds ,grant payments shall be 
awarded with an initial distribution of 
#bj percent of the total grant amount1  
followed by a distribution of #aj       
percent of the total grant amount prior 
to the second1 third1 and fourth years  
of the program1 and the remaining #ej   
percent of the total grant amount after 

the program receives its final          
satisfactory annual evaluation by the   
,secretary in accordance with subsection
 7f77#a74  7#c7 ,description of         
innovative programs ,the programs       
described under paragraph 7#a7 shall    
include those that--  7,a7 utilize      
online instruction1 including distance  
education 7as defined in section #ajc of
 the ,higher ,education ,act of #aife   
7#bj ,u4,s4,c4 #ajjc771 or online       
interaction components1 or online       
instruction integrated with classroom or
 in-person instruction2  7,b7 utilize   
direct assessment programs1 as described
 in section #dha7;b77#d7 of the ,higher 
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhh7;b77#d771 either within a         
comprehensive direct assessment program 
or integrated within another type of    
academic program2  7,c7 utilize         
integration of experiential learning and
 design of customized programs of study1
 to promote completion or alignment with
 medium- and long-term employment needs2

  7,d7 allow students to be dually or   
concurrently enrolled in the            
postsecondary program and a secondary   
school1 or a postsecondary program and a
 graduate program2 or  7,e7 utilize any 
other innovative1 evidence-based method 
of postsecondary education that provides
 cost-effective1 high-quality methods   
for instruction1 student learning1 and  
use of available technology-based       
resources1 including hybrid models      
incorporating elements of the program   
types set forth in subparagraphs 7,a71  
7,b71 7,c71 and 7,d71 and adaptive      
learning technologies4  7c7             
,applications  7#a7 ,in general ,an     
institution of higher education that    
desires to receive a grant under this   
section shall submit an application to  
the ,secretary at such time and in such 
manner as the ,secretary may require4   
7#b7 ,contents ,an application submitted
 under paragraph 7#a7 shall include--   
7,a7 a description of the institution's 
quality assurances for the programs to  

be offered2  7,b7 a description of the  
statutory and regulatory requirements   
for which a waiver is sought under      
subsection 7e7 and the reasons for which
 the waiver is sought2  7,c7 a          
description of the programs to be       
offered2  7,d7 a description of the     
students eligible for the programs      
offered1 including any eligibility      
limitations2  7,e7 an assurance that the
 institution will fully cooperate with  
the ongoing evaluations of the programs 
provided for in this section2  7,f7 a   
description of how the proposed program 
will improve the quality of its         
postsecondary certificates or degrees1  
reduce tuition and other costs to       
students1 and reduce enrollment time2   
7,g7 a description of the data 7or any  
other evidence7 that indicate that the  
programs to be offered will likely lead 
to the outcomes described in            
subparagraph 7,f72  7,h7 a complete     
listing of the institution's performance
 goals and measures regarding           

assessments of the quality of its       
postsecondary certificates or degrees1  
amount of tuition and costs charged to  
students1 and the amount of enrollment  
time needed by students to complete the 
postsecondary certificates or degrees2  
and  7,i7 any other information as the  
,secretary may require4  7d7 ,awarding  
of grants  7#a7 ,in general ,the        
,secretary shall award grants under this
 section to institutions of higher      
education for new or existing programs4 
7#b7 ,priority ,in awarding grants under
 this section1 the ,secretary shall give
 priority to an institution of higher   
education that the ,secretary           
determines--  7,a7 is financially       
responsible1 as described in section    
#dih7;c77#a7 of the ,higher ,education  
,act of #aife 7#bj ,u4,s4,c4            
#ajii;c7c77#a772  7,b7 has a proven     
record of graduating students from the  
other programs of the institution2  7,c7
 has a proven record of graduates from  
the other programs of the institution   

securing full-time employment2  7,d7    
simultaneously addresses income-related 
inequalities in remedial education1     
college access1 persistence rates1 and  
graduation rates2  7,e7 has support     
services in place1 such as counseling1  
coaching1 mentoring1 and outreach1 that 
are designed to assist all students in  
obtaining information and making        
decisions regarding financial aid1 and  
degree or certificate likelihood of     
persistence and completion2  7,f7 will  
serve low-income students1 adult        
students aged #be years and older1 and  
part-time students2  7,g7 will support  
programs that are replicable at a range 
of institutions of higher education if  
they are demonstrated to be successful2 
and  7,h7 has presented the strongest   
evidence in support of their likely     
outcomes1 as required under subsection  
7c77#b77;,g74  7#c7 ,diverse populations
 ,in awarding grants under this section1
 the ,secretary shall ensure the        
participation of diverse student        

populations1 including rural and urban  
populations1 and of a diverse range of  
institutions4  7#d7 ,publication of     
grantees ,the ,secretary shall make     
available to the public and to the      
authorizing committees a list of the    
institutions of higher education awarded
 a grant under this section1 including a
 listing of the specific statutory and  
regulatory requirements being waived for
 each institution and a description of  
the programs and courses to be offered4 
7e7 ,waivers  7#a7 ,in general ,except  
as provided under paragraph 7#b71 with  
respect to institutions of higher       
education awarded grants under this     
section1 the ,secretary may waive--     
7,a7 subsection 7a7 or 7b7 of section   
#dha of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajhh7;a7 and 7b771
 as such subsections relate to          
requirements for a minimum number of    
weeks of instruction2  7,b7 subparagraph
 7,a7 or 7,b7 of section #ajb7;a77#c7 of
 such ,act 7#bj ,u4,s4,c4               

#ajjb7;a77#c77;,a7 and 7,b772  7,c7 one 
or more of the regulations promulgated  
to carry out part ,f or ,g of title ,,iv
 of such ,act 7#bj ,u4,s4,c4 #ajhgkk et 
seq4 and #ajhh et seq471 which inhibit  
the operation of innovative education   
programs2 and  7,d7 any other           
requirement under title ,,iv of such    
,act 7#bj ,u4,s4,c4 #ajgj et seq47 that 
will bias the results of the program1   
including a requirement related to the  
award process and disbursement of       
student financial aid 7such as          
innovative delivery systems for modular 
or compressed courses or other          
innovative systems71 or other management
 procedures or processes as determined  
in the negotiated rulemaking process    
under section #dib of such ,act 7#bj    
,u4,s4,c4 #ajih;a71 or regulations      
prescribed under such title4  7#b7      
,prohibition of waiver ,the ,secretary  
shall not waive1 pursuant to paragraph  
7#a71 any provision under the ,higher   
,education ,act of #aife 7#bj ,u4,s4,c4 

#ajja et seq47 or a regulation          
promulgated to carry out such ,act with 
respect to award rules 7other than an   
award rule related to an experiment in  
modular or compressed schedules71 grant 
and loan maximum award amounts1 and need
 analysis requirements1 unless the      
waiver of such provision is authorized  
by another provision under such ,act4   
7f7 ,evaluation and reports  7#a7       
,evaluation and accountability process  
,the ,secretary shall establish an      
evaluation and accountability process   
for the programs authorized under this  
section and shall administer such       
process on an annual basis4 ,such       
evaluations shall include--  7,a7 the   
extent to which the institution of      
higher education has met the goals set  
forth in its application to the         
,secretary1 including the quality of    
education provided by participating     
programs2  7,b7 the number and types of 
students participating in the programs  
offered1 including the progress of      

participating students toward recognized
 certificates or degrees2  7,c7 issues  
related to student financial assistance2
  7,d7 the extent to which any statutory
 or regulatory requirements present     
difficulties for students or            
institutions in the participating       
programs2 and  7,e7 an analysis of the  
program's progress with each of its     
objectives1 including the number and    
rate of completion of participating     
students toward recognized certificates 
or degrees1 prices charged to students1 
time required to complete the           
participating programs1 on-time         
completion rates of participating       
students1 and indicators of program     
quality4  7#b7 ,review ,the ,secretary  
shall review policies and identify those
 policies that present impediments to   
the development and use of innovative   
programs and other nontraditional       
methods of expanding success and access 
to education4  7#c7 ,measures ,the      
,secretary shall establish measures to  

assess the quality of the education     
provided by participating programs under
 this section1 including a minimum      
standard of quality that participating  
programs shall meet4  7#d7 ,reports ,the
 ,secretary shall provide reports to the
 authorizing committees on an annual    
basis regarding--  7,a7 the programs    
authorized under this section2 and  7,b7
 the number and types of students       
receiving assistance under this section 
for instruction leading to a recognized 
degree or certificate1 including the    
progress of such students toward        
recognized certificates and the degree  
to which participation in such programs 
leading to such certificates increased4 
7#e7 ,duties of the secretary ,in       
conducting the program authorized under 
this section1 the ,secretary shall1 on a
 continuing basis--  7,a7 ensure        
compliance of institutions of higher    
education with the requirements of this 
section 7other than the sections and    
regulations that are waived under       

subsection 7e772  7,b7 provide technical
 assistance2  7,c7 monitor fluctuations 
in the student population enrolled in   
the participating program2 and  7,d7    
assess whether each participating       
program is improving the quality of     
postsecondary credentials and meeting   
the quality control measures set by the 
,secretary4  7g7 ,consumer protection   
for students  7#a7 ,program termination 
,if a program funded under this section 
terminates on its accord at any point   
during which the program is receiving   
funds under this section1 or if the     
,secretary determines that the program  
does not meet the minimum standard of   
quality as required under subsection    
7f77#c7--  7,a7 the institution of      
higher education administering the      
program shall provide immediate notice  
to students enrolled in the program and 
shall prepare a teach-out plan1 as      
described in section #dhg7;f7 of the    
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajid7;f772 and  7,b7 the     

,secretary shall--  7i7 ensure that--   
7,i7 no additional program funds are    
distributed to the program2 and  7,,ii7 
the institution of higher education     
administering the program is in         
compliance with the notice and teach-out
 requirements under subparagraph 7,a72  
and  7ii7 assess a fine to an           
institution of higher education         
administering the program that is not in
 compliance with the notice and         
teach-out requirements under            
subparagraph 7,a74  7#b7 ,notice and    
disclosure for students ,an institution 
of higher education administering a     
participating program under this section
 shall provide notice to all students   
before they enroll in the participating 
program that such program is receiving  
grant funds under this section and may  
be terminated1 as described in paragraph
 7#a74  7h7 ,final evaluation by        
third-,party reviewer  7#a7 ,in general 
,the ,secretary shall direct an         
independent third-party evaluator to    

review all participating programs and   
conduct a final evaluation in order to  
determine the evidence of the           
effectiveness of each program in        
achieving its objectives with regard to 
the quality of the education provided1  
reducing the cost of the degree or      
certificate program1 and shortening the 
amount of time needed to complete the   
degree or certificate program4  7#b7    
,evaluation methodology ,the independent
 third-party evaluator shall establish  
evaluation methodology in carrying out  
the final evaluation under paragraph    
7#a74  7#c7 ,submission to authorizing  
committees ,the independent third-party 
evaluator shall publicize the final     
evaluation and submit such evaluation to
 the authorizing committees4  7#d7      
,funding ,not more than #a percent of   
the total amount appropriated to carry  
out this section may be used to carry   
out this subsection4  7i7 ,authorization
 of appropriations ,there is authorized 
to be appropriated to carry out this    

section--  7#a7 #bfj1jjj1jjj for fiscal 
year #bjae2 and  7#b7 such sums as may  
be necessary for each succeeding fiscal 
year4  #d4 ,higher education            
accountability  7a7 ,purpose2 definition
  7#a7 ,in general ,the purpose of this 
section is to establish minimum         
institutional accountability standards  
that will be required of all            
institutions of higher education that   
receive funds or whose students receive 
funds pursuant to title ,,iv of the     
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajgj et seq47 programs4 ,the 
standards shall focus on affordability1 
accessibility for low- and middle-income
 students1 and value4  7#b7 ,institution
 of higher education ,in this section3  
7,a7 ,in general ,the term institution  
of higher education means an institution
 of higher education described in       
section #ajb of the ,higher ,education  
,act of #aife 7#bj ,u4,s4,c4 #ajjb71    
except as provided in subparagraphs 7,b7
 and 7,c74  7,b7 ,exception ,the term   

institution of higher education does not
 include institutions that solely offer 
graduate or professional degree programs
 of study4  7,c7 ,institutions ,to the  
extent an institution offers            
undergraduate programs of study and     
graduate or professional degree programs
 of study1 for purposes of this section1
 the term institution of higher         
education with respect to such          
institutions shall only include the     
undergraduate programs of study4  7b7   
,commission on higher education         
accountability standards  7#a7 ,in      
general ,not later than #ij days after  
the date of enactment of this ,act1     
there shall be established a ,commission
 on ,higher ,education ,accountability  
,standards 7referred to in this section 
as the ,commission7 to make             
recommendations on a set of minimum     
accountability standards and the        
measures for assessing compliance with  
such standards for institutions of      
higher education that shall focus on    

affordability1 access for low- and      
middle-income students1 and value4  7#b7
 ,composition of the ,commission  7,a7  
,in general ,members of the ,commission 
shall be appointed as follows3  7i7 #e  
members shall be appointed by the       
,majority ,leader of the ,senate1 with  
the concurrence of the ,minority ,leader
 of the ,senate on #b of such members4  
7ii7 #e members shall be appointed by   
the ,majority ,leader of the ,house of  
,representatives1 with the concurrence  
of the ,minority ,leader of the ,house  
of ,representatives on #b of such       
members4  7iii7 #e members shall be     
appointed by the ,secretary1 including  
at least #a member from the ,national   
,center for ,education ,statistics and  
#a member from the ,federal ,student    
,aid ,office of the ,department of      
,education4  7iv7 ,in the event that any
 member of the ,commission has not been 
appointed during the #ij-;day period    
after the date of enactment of this     
,act1 the ,secretary shall appoint the  

remaining member in order to establish  
the ,commission4  7,b7 ,general         
qualifications ,members of the          
,commission shall be appointed on the   
basis of the individuals'--  7i7        
experience1 integrity1 impartiality1 and
 good judgment2 and  7ii7 except with   
respect to the undergraduate students1  
technical qualifications and            
professional standing4  7,c7 ,members of
 the commission ,members appointed under
 subparagraph 7,a7 shall be comprised of
 the following relevant stakeholders3   
7i7 #b undergraduate student leaders    
from different types of institutions of 
higher education4  7ii7 #b members of   
national or regional student advocacy   
organizations with a track record of    
engagement and expertise on issues      
related to college costs and student    
debt4  7iii7 #a consumer advocate or    
consumer protection expert with         
demonstrated knowledge of consumer      
protection issues related to            
undergraduate students4  7iv7 #b        

representatives of faculty groups or    
associations with expertise related to  
higher education finance or governance4 
7v7 #a ,state government official with  
demonstrated knowledge of ,state        
budgeting and higher education funding4 
7vi7 #c administrative officers from    
various types of institutions of higher 
education1 including at least #a from a 
minority-serving institution4  7vii7 #a 
higher education researcher4  7viii7 #a 
,state postsecondary education data     
system director4  7ix7 #a member from   
the ,national ,center for ,education    
,statistics4  7x7 #a member from the    
,federal ,student ,aid ,office of the   
,department of ,education4  7#c7        
,recommendations  7,a7 ,in general ,the 
,commission shall make recommendations  
on a set of minimum accountability      
standards that institutions of higher   
education must meet with respect to     
affordability1 accessibility1 and value 
in order to receive funds or that the   
students of such institutions may       

receive funds pursuant to title ,,iv of 
the ,higher ,education ,act of #aife    
7#bj ,u4,s4,c4 #ajgj et seq47 programs4 
,the ,commission shall also recommend   
measures and acceptable levels of       
performance on those measures to assess 
compliance with the minimum             
accountability standards4 ,if the       
,commission cannot issue its            
recommendations by consensus1 it shall  
issue its recommendations based on the  
views of a majority of the ,commission4 
7,b7 ,required measures ,the ,commission
 shall include1 at a minimum1 the       
following measures as part of the       
minimum accountability standards it     
shall recommend3  7i7 ,affordability    
,the average or mean cost of tuition and
 other costs required for attendance    
after all institutional1 ,federal1 and  
,state grant aid is taken into account4 
7ii7 ,accessibility ,the percentage of  
the total number of enrolled students   
who are recipients of a ,federal ,pell  
,grant under subpart #a of part ,a of   

title ,,iv of the ,higher ,education    
,act of #aife 7#bj ,u4,s4,c4 #ajgj;a et 
seq474  7iii7 ,value ,student loan      
repayment rates4  7,c7 ,other measures  
,the ,commission shall make             
recommendations on additional measures  
to comprise the minimum accountability  
standards1 including the following3  7i7
 ,affordability ,the ,commission shall  
make recommendations on additional      
higher education affordability measures1
 including the appropriateness of the   
following3  7,i7 ,the cost of tuition   
relative to the cost to the institution 
of educating a student and the          
institution's administrative costs4     
7,,ii7 ,the percentage of institutional 
aid that is awarded on the basis of     
need1 as opposed to merit4  7,,iii7     
,annual increases in tuition after      
taking into account all public          
subsidies4  7ii7 ,accessibility ,the    
,commission shall make recommendations  
on higher education accessibility       
measures1 including the appropriateness 

of the following3  7,i7 ,enrollment of  
low- and middle-income1 underrepresented
 minorities1 and adult students aged #be
 and older4  7,,ii7 ,whether            
institutional policies on credit        
transfers meet industry standards by    
type of receiving institution4  7iii7   
,value ,the ,commission shall make      
recommendations on measures of higher   
education value1 including the          
appropriateness of the following3  7,i7 
,student progress toward completion of a
 postsecondary degree or certificate4   
7,,ii7 ,student completion of a         
postsecondary degree or certificate1    
including for transfer and part-time    
students1 or where applicable1 transfer 
rates to #d-year degree programs4       
7,,iii7 ,student retention rates4       
7,,iv7 ,full-time employment and        
graduate degree enrollment rates after  
graduation4  7#d7 ,considerations ,the  
,commission shall take into account the 
differences in missions of institutions 
of higher education and ensure that     

institutions are held to standards that 
are appropriate for their mission4  7#e7
 ,hearings and report  7,a7 ,hearings   
,not later than #f months after the date
 of the appointment of the final member 
of the ,commission1 the ,commission     
shall hold public field hearings in all 
regions of the ,united ,states4 ,the    
,commission shall hold not fewer than #h
 hearings4  7,b7 ,report ,not later than
 #a year after the date of the          
appointment of the final member of the  
,commission1 the ,commission shall      
prepare a report on the recommendations 
under paragraph 7#c7 and submit the     
report to the ,secretary and the        
authorizing committees4 ,the report     
shall include the following3  7i7       
,recommendations for minimum            
accountability standards and the        
measures for assessing compliance with  
those standards for every institution of
 higher education that receives funds or
 whose students receive funds pursuant  
to title ,,iv of the ,higher ,education 

,act of #aife 7#bj ,u4,s4,c4 #ajgj et   
seq47 programs4 ,the standards shall    
focus on affordability1 access for low- 
and middle-income students1 and value4  
,the ,commission shall recommend        
standards that are in accordance with   
the types of information that           
institutions of higher education are    
authorized to collect and report under  
the ,higher ,education ,act of #aife    
7#bj ,u4,s4,c4 #ajja et seq474  7ii7    
,recommendations for applying the       
standards to institutions of higher     
education with different academic       
missions4  7iii7 ,recommendations for   
periodic reevaluation of the standards  
and their efficacy by the ,secretary4   
7iv7 ,recommendations for sharing       
institutions' performance with respect  
to the standards with prospective       
students and conducting complementary   
consumer education for students4  7v7   
,recommendations for the criteria the   
,secretary should use to reward         
institutions of higher education that   

meet and exceed the minimum             
accountability standards4  7vi7         
,recommendations to ,congress on reforms
 to statutory or regulatory limitations 
on the collection and availability of   
data that would improve the ,secretary's
 ability to assess institutions'        
compliance with minimum standards of    
affordability1 accessibility1 and value4
  7#f7 ,securing information ,the       
,commission may secure directly from any
 ,federal department or agency such     
information as the ,commission considers
 necessary to carry out its duties under
 this section4 ,the ,commission may     
request the head of any ,state or local 
department or agency to furnish such    
information to the ,commission4  7#g7   
,final standards  7,a7 ,in general ,not 
later than #a year after receiving the  
report under paragraph 7#e71 the        
,secretary shall publish a final rule on
 institutional accountability standards4
 ,the standards shall be determined by  
the ,secretary after giving due         

consideration to the recommended        
standards provided by the ,commission4  
,the ,secretary shall set forth in      
writing the reasons for any deviation   
from the ,commission's recommendations  
for any standard or measure and shall   
submit the written statement to the     
authorizing committees4  7,b7 ,required 
measures to be included ,in carrying out
 subparagraph 7,a71 the ,secretary shall
 include the measures described in      
subsection 7b77#c77;,b7 that the        
,commission is required to include as   
part of its minimum accountability      
standards4  7#h7 ,assessment ,the       
,secretary shall annually assess        
compliance with the institutional       
accountability standards4 ,on ,september
 #cj of the year following the          
publication of the final rule as        
required under paragraph 7#g7 and every 
year thereafter1 the ,secretary shall   
publish a list of each institution of   
higher education that participates in   
title ,,iv of the ,higher ,education    

,act of #aife 7#bj ,u4,s4,c4 #ajgj et   
seq47 and the institution's level of    
compliance with the accountability      
standards4 ,the list shall be made      
easily accessible to the public4  7#i7  
,implementation ,the ,secretary shall   
establish procedures to implement this  
subsection1 including procedures for    
effectively applying this subsection4   
7#aj7 ,termination ,the ,commission     
shall terminate #fj days after the date 
on which the ,commission submits the    
report under paragraph 7#e74  7c7       
,incentivize improvement for            
below-,standard institutions  7#a7 ,in  
general ,an institution of higher       
education that participates in title    
,,iv of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajgj et seq47     
programs and that does not meet the     
institutional accountability standards  
adopted under subsection 7b7--  7,a7    
shall be deemed to be in probationary   
status2 and  7,b7 shall work with the   
,secretary to develop a plan for how the

 institution will achieve compliance not
 later than #e years after the date of  
the determination of noncompliance4     
7#b7 ,continuous improvement ,for each  
year following a determination that an  
institution of higher education does not
 meet the institutional accountability  
standards adopted under subsection 7b71 
the institution shall demonstrate to the
 ,secretary continuous improvement in   
following its plan to achieve           
compliance4  7#c7 ,failure to make      
continuous improvement  7,a7 ,in general
  7i7 #b years out ,if an institution of
 higher education does not show         
continuous improvement #b years after a 
determination that it does not meet the 
institutional accountability standards  
adopted under subsection 7b71 the       
institution shall pay to the ,secretary 
an amount equal to #aj percent of the   
total amount of funds made available    
under title ,,iv of the ,higher         
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajgj et seq47 to students in attendance

 with an undergraduate enrollment status
 at the institution during the prior    
academic year1 to be deposited into the 
fund described in subparagraph 7,c74    
7ii7 #c years out ,if an institution of 
higher education does not show          
continuous improvement #c years after a 
determination that it does not meet the 
institutional accountability standards  
adopted under subsection 7b71 the       
institution shall pay to the ,secretary 
an amount equal to #bj percent of the   
total amount of funds made available    
under title ,,iv of the ,higher         
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajgj et seq47 to students in attendance
 with an undergraduate enrollment status
 at the institution during the prior    
academic year1 to be deposited into the 
fund described in subparagraph 7,c74    
7iii7 #d years out ,if an institution of
 higher education does not show         
continuous improvement #d years after a 
determination that it does not meet the 
institutional accountability standards  

adopted under subsection 7b71 the       
institution shall pay to the ,secretary 
an amount equal to #cj percent of the   
total amount of funds made available    
under title ,,iv of the ,higher         
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajgj et seq47 to students in attendance
 with an undergraduate enrollment status
 at the institution during the prior    
academic year1 to be deposited into the 
fund described in subparagraph 7,c74    
7,b7 ,waiver and payment plan  7i7      
,waiver ,the ,secretary may waive a     
requirement of an institution of higher 
education paying the amount owed        
pursuant to subparagraph 7,a7 if the    
,secretary determines such a waiver is  
necessary to avoid extreme hardship for 
the students enrolled at such           
institution4  7ii7 ,payment plan ,the   
,secretary may allow an institution of  
higher education that owes an amount    
under subparagraph 7,a7 to enter into a 
payment plan to pay such amount4  7,c7  
,fund ,there shall be established a     

special fund in which amounts refunded  
by an institution of higher education   
under this paragraph shall be placed to 
be used pursuant to subsection 7d74     
7#d7 ,noncompliance five years out ,if  
an institution of higher education fails
 to achieve compliance by not later than
 the date that is #e years after the    
date of the determination that the      
institution does not meet the           
institutional accountability standards1 
the institution--  7,a7 shall not be    
eligible to receive funds under title   
,,iv of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajgj et seq47 for 
the academic year following the date    
that is #e years after the date of the  
determination2  7,b7 shall be required  
to submit a teach-out plan1 as described
 in section #dhg7;f7 of the ,higher     
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajid7;f772 and  7,c7 shall be eligible 
to receive funds under such title ,,iv  
when the institution is able to         
demonstrate compliance with the         

institutional accountability standards4 
7d7 ,authorization of reward grant      
program  7#a7 ,in general ,from amounts 
available in the fund established       
pursuant to subsection 7c77#c77;,c71 the
 ,secretary shall award grants1 on a    
competitive basis1 to institutions of   
higher education that meet or exceed the
 institutional accountability standards 
adopted under subsection 7b74 ,in       
determining the criteria for awarding   
grants1 the ,secretary shall give due   
consideration to the recommendations of 
the ,commission4  7#b7 ,use for         
financial aid ,an institution of higher 
education awarded a grant under         
paragraph 7#a7 shall use the grant funds
 for need-based aid to students who are 
eligible for ,federal ,pell ,grants     
under subpart #a of part ,a of title    
,,iv of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajgj;a et seq474