,,ii #aaeth ,,congress #ast ,session ,s4 #bbbh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ac1 #bjag,mr4 ,lee introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,higher ,education ,act of #aife to provide for accreditation reform1 to require institutions of higher education to publish information regarding student success1 to provide for fiscal accountability1 and to provide for school accountability for student loans4 #a4 ,short title ,this ,act may be cited as the ,higher ,education ,reform and ,opportunity ,act of #bjag4 ,i ,accreditation reform #aja4 ,accreditation reform 7a7 ,definition of ,institution of ,higher ,education ,section #ajb7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb7;a77 is amended-- 7#a7 by redesignating paragraphs 7#e7 and 7#f7 as paragraphs 7#f7 and 7#g71 respectively2 7#b7 in paragraph 7#a71 in the matter preceding subparagraph 7,a71 by striking ,subject to paragraphs 7#b7 through 7#d7 and inserting ,subject to paragraphs 7#b7 through 7#e72 7#c7 in paragraph 7#a7-- 7,a7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively2 and 7,b7 by inserting after subparagraph 7,a7 the following3 7,b7 if accredited by an authorized accreditation authority in a ,state that has an alternative accreditation agreement with the ,secretary1 as described in paragraph 7#e7-- 7i7 an institution that provides postsecondary education2 7ii7 a postsecondary apprenticeship program2 or 7iii7 a postsecondary education course or program provided by an institution of postsecondary education1 a nonprofit organization1 or a for-profit organization or business2 2 and 7#d7 by inserting after paragraph 7#d71 the following3 7#e7 ,state alternative accreditation 7,a7 ,in ,general ,notwithstanding any other provision of law1 a ,state may establish an alternative accreditation system for the purpose of establishing institutions that provide postsecondary education and postsecondary education courses or programs as eligible for funding under title ,,iv if the ,state enters into an agreement with the ,secretary for the establishment of the alternative accreditation system4 ,such institutions1 courses1 or programs may include-- 7i7 institutions that provide postsecondary education2 7ii7 postsecondary apprenticeship programs2 7iii7 any other postsecondary education course or program offered at an institution of postsecondary education1 a nonprofit organization1 or a for-profit organization or business2 and 7iv7 any of the entities described in clauses 7i7 through 7iii7 that do not award a postsecondary certification1 credential1 or degree1 provided that such entity provides credit that will apply toward a postsecondary certification1 credential1 or degree4 7,b7 ,alternative accreditation agreement ,the alternative accreditation agreement described in subparagraph 7,a7 shall include the following3 7i7 ,the designation of one or more authorized accrediting entities within the ,state1 such as the ,state ,department of ,education1 another ,state agency1 an industry-specific accrediting agency1 or another entity1 and an explanation of the process through which the ,state will select such authorized accrediting entities4 7ii7 ,the standards or criteria that an institution that provides postsecondary education and a postsecondary education course or program must meet in order to-- 7,i7 receive an initial accreditation as part of the alternative accreditation system2 and 7,,ii7 maintain such accreditation4 7iii7 ,a description of the appeals process through which an institution that provides postsecondary education and a postsecondary education course or program may appeal to an authorized accrediting entity if such institution1 course1 or program is denied accreditation under the ,state alternative accreditation system4 7iv7 ,whether credit received from a postsecondary education course or program that is accredited as part of the alternative accreditation system is transferable-- 7,i7 to other courses or programs accredited as part of an alternative accreditation system2 or 7,,ii7 to other postsecondary certification1 credential1 or degree courses or programs at an educational institution that is eligible to participate in a program under title ,,iv but is not accredited as part of an alternative accreditation system4 7v7 ,the ,secretary's reporting requirements for the ,state regarding the ,state alternative accreditation system1 including-- 7,i7 the contents of reports that must be submitted to the ,secretary1 which may include information such as-- 7aa7 in the case of a postsecondary education course or program that is accredited through the ,state alternative accreditation system-- 7,,aa7 the number and percentage of students who successfully complete each such postsecondary education course or program2 and 7,,bb7 the number and percentage of students who successfully obtain a postsecondary certification1 credential1 or degree using credit obtained from each such postsecondary education course or program2 and 7bb7 in the case of an institution that provides postsecondary education that is accredited through the ,state alternative accreditation system-- 7,,aa7 the number and percentage of students who successfully obtain a postsecondary certification1 credential1 or degree from such institution2 and 7,,bb7 the number and percentage of students who do not successfully obtain a postsecondary certification1 credential1 or degree from such institution but do obtain credit from such institution toward a postsecondary degree1 credential1 or certification2 7,,ii7 the frequency with which such reports must be submitted to the ,secretary2 and 7,,iii7 any requirements for third party verification of information contained in such reports4 7vi7 ,the ,state policy regarding public accessibility to certain information relating to institutions that provide postsecondary education and postsecondary education courses and programs accredited under the ,state alternative accreditation system1 including-- 7,i7 the information described in clause 7v77,i72 and 7,,ii7 information about the rates of job placement for individuals that have graduated from an institution or completed a course or program that is accredited under the ,state alternative accreditation system1 if available4 7vii7 ,an assurance by the ,state that under the ,state alternative accreditation system1 only institutions that provide postsecondary education and postsecondary education courses or programs that provide credits toward a postsecondary certification1 credential1 or degree 7as defined by the ,state in accordance with clause 7viii77 will be accredited4 7viii7 ,the ,state's definition of a postsecondary certification1 credential1 or degree1 as such term applies to the requirement described in clause 7vii74 7ix7 ,a description of the agreements that the ,state will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system to enable such institutions1 courses1 or programs to be eligible under a program authorized under title ,,iv1 for participation in the direct student loan program1 and for the origination of loans under part ,d of title ,,iv1 and how such agreements will operate in lieu of the agreements described in sections #dhg and #ded4 7x7 ,a description of how the ,state will select institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system1 in lieu of the selection process described in section #dec1 for-- 7,i7 participation in the direct student loan program under part ,d of title ,,iv2 and 7,,ii7 approval allowing such institution1 program1 or course to originate direct loans under part ,d of title ,,iv4 7xi7 ,a description of how the ,state will administer title ,,iv funds for institutions that provide postsecondary education1 postsecondary apprenticeship programs1 and postsecondary education courses or programs provided by an institution of postsecondary education1 a nonprofit organization1 or a for-profit organization or business that are accredited through the alternative accreditation system4 7,c7 ,review and approval ,not later than #cj days after the ,secretary receives an application from a ,state to enter into an alternative accreditation agreement1 the ,secretary shall-- 7i7 approve the application and enter into the agreement2 and 7ii7 submit to the ,state and ,congress1 and make publicly available1 a response to the application4 7,d7 ,time limit ,each agreement the ,secretary enters into for the establishment of an alternative accreditation system in a ,state shall be for a period of #aj years4 4 7b7 ,title ,,iv eligibility requirements ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,state ,accredited ,institutions1 ,programs1 or ,courses ,notwithstanding any other provision of law1 an institution1 program1 or course that is eligible for funds under this title in accordance with section #ajb7;a77#a77;,b7 and meets the requirements of section #ajb7;a77#e7 shall not be required to meet any other requirements of this title4 ,for purposes of this title1 such an institution1 program1 or course shall be deemed to be an eligible institution that meets the requirements of section #dhg4 4 ,,ii ,transparency in higher education #bja4 ,time for transparency in higher education 7a7 ,in general ,title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 is amended-- 7#a7 in section #dhg7;a71 by adding at the end the following3 7#cj7 ,the institution will publish information in compliance with section #dic;,e4 2 and 7#b7 in part ,g1 by adding at the end the following3 #dic;,e4 ,institutional publication of information 7a7 ,publication of information 7#a7 ,in general ,each institution of higher education participating in a program under this title shall publish1 on an annual basis and in a readily accessible format 7including online and in an alternative format71 the information described in paragraphs 7#b7 and 7#c74 7#b7 ,information ,each institution of higher education described in paragraph 7#a7 shall publish1 with respect to the institution as a whole and with respect to each program of study offered by the institution1 the following information for the most recent fiscal year for which the information is available3 7,a7 ,for each of the following1 the percentage and number of students enrolled at the institution or in the program of study1 as applicable1 who receive the following3 7i7 ,federal grant aid1 including ,federal ,pell ,grants under subpart #a of part ,a1 ,federal ,supplemental ,educational ,opportunity ,grants under subpart #c of part ,a1 or any other ,federal postsecondary education grant aid or subsidy4 7ii7 ,federal student loans1 including ,federal ,direct ,stafford ,loans1 ,federal ,direct ,unsubsidized ,stafford ,loans1 ,federal ,direct ,,plus ,loans1 and ,federal ,perkins ,loans4 7iii7 ,state grant aid4 7iv7 ,institutional grants4 7v7 ,a student loan from a ,state4 7vi7 ,a student loan from another source4 7,b7 ,student body enrollment status1 including as a-- 7i7 first-time1 full-time student2 7ii7 first-time1 part-time student2 7iii7 non-first-time1 full-time student2 and 7iv7 non-first-time1 part-time student4 7,c7 ,an alumni report that includes the following3 7i7 ,the percentage of students who do not complete the program of study the student initially started upon enrollment4 7ii7 ,the percentage of students who transfer4 7iii7 ,the percentage of students who complete the program of study the student initially started upon enrollment4 7iv7 ,the average length of time for a student to complete the program of study4 7v7 ,the percentage of alumni who continue on to higher levels of education4 7vi7 ,the percentage of alumni who are employed1 disaggregated by program of study4 7vii7 ,the average salary for alumni1 disaggregated by program of study4 7viii7 ,the number and percentage of alumni contacted for such report4 7ix7 ,the response rate of alumni contacted for such report4 7#c7 ,publication of default and non-repayment rates ,in addition to the information described in paragraph 7#b71 each institution of higher education described in paragraph 7#a7 shall publish1 with respect to the institution as a whole and with respect to each program of study offered by the institution1 the following information for the most recent fiscal year for which the information is available3 7,a7 ,the average amount of total ,federal student loan debt accrued upon graduation4 7,b7 ,the average amount of total ,federal student loan debt accrued by students who leave the institution without having graduated4 7,c7 ,federal student loan default rate4 7,d7 ,federal student loan non-repayment rate4 7,e7 ,default and non-repayment rate1 including as a-- 7i7 first-time1 full-time student2 7ii7 first-time1 part-time student2 7iii7 non-first-time1 full-time student2 and 7iv7 non-first-time1 part-time student4 7,f7 ,default and non-repayment rate1 of-- 7i7 students who complete a program of study2 7ii7 students who transfer2 and 7iii7 students who do not complete a program of study4 7b7 ,privacy 7#a7 ,compliance with ,,ferpa ,in carrying out this section1 an institution of higher education and any personnel of the institution shall not share any personally identifiable information and shall act in accordance with section #ddd of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;g1 commonly known as the ,family ,educational ,rights and ,privacy ,act of #aigd74 7#b7 ,prohibition on use of information ,information published pursuant to this section shall not be used-- 7,a7 by a ,federal employee1 agency1 or officer1 or an institution of higher education to take action against an individual2 and 7,b7 in legal processes or admitted as evidence in any judicial or administrative proceeding4 7#c7 ,penalties ,the ,secretary shall establish penalties for a violation of paragraph 7#a7 or 7#b7 that includes both a monetary fine and up to #e years in prison4 7#d7 ,audits ,in carrying out this section1 the ,state in which the institution of higher education is located shall contract with an independent third party to conduct audits of the publication of information described in subsection 7a77#a7 to ensure quality1 validity1 reliability1 and compliance with all ,federal standards of data quality and individual privacy4 7c7 ,rule of construction ,nothing in this section shall be construed to authorize or permit the ,secretary or any employee or contractor of the ,department to mandate1 direct1 or control the selection of practices or curriculum by an institution of higher education4 4 7b7 ,,gao report 7#a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study that compiles all the institutional publication of information pursuant to section #dic;,f of the ,higher ,education ,act of #aife4 7#b7 ,report ,not later than ,october #a of the fourth fiscal year after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit a report containing the results of the study under paragraph 7#a7 to the appropriate committees of ,congress4 ,,iii ,fiscal accountability #cja4 ,simplification of ,federal student loans ,part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfa4 ,federal ,direct simplification loans 7a7 ,termination of authority ,to make loans under this part 7#a7 ,in general ,subject to paragraph 7#b7 and notwithstanding any other provision of this part1 for any period of instruction beginning on or after #f months after the date of enactment of the ,higher ,education ,reform and ,opportunity ,act of #bjag1 the ,secretary may not make loans under this part except as provided under this section4 7#b7 ,exception 7,a7 ,in general ,paragraph 7#a7 shall not apply to an individual1 or on behalf of an individual1 who received a loan under this part for any period of instruction before ,july #a1 #bjag4 7,b7 ,sunset ,a loan may not be made to an individual1 or on behalf of an individual1 who received a loan under this part for any period of instruction before ,july #a1 #bjag1 under this part1 other than as provided under this section1 on or after ,july #a1 #bjai4 7b7 ,federal ,direct simplification loans ,the ,secretary shall make loans to borrowers under this section in accordance with the following3 7#a7 ,the applicable rate of interest on a loan made under this section shall1 for loans disbursed during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7,a7 a rate equal to the high yield of the #aj-year ,treasury note auctioned at the final auction held prior to such ,june #a1 plus 7,b7 #c4f percent4 7#b7 ,interest on a loan made under this section shall begin to accrue on the date the loan is disbursed4 7#c7 ,the maximum-- 7,a7 annual amount of loans under this section an undergraduate student may borrow in any academic year 7as defined in section #dha7;a77#b77 or its equivalent shall be equal to #g1ejj2 and 7,b7 aggregate amount of loans under this section an undergraduate student may borrow shall be equal to #cj1jjj4 7#d7 ,the maximum-- 7,a7 annual amount of loans under this section a graduate or professional student may borrow in any academic year 7as defined in section #dha7;a77#b77 or its equivalent shall be equal to #ac1ejj2 and 7,b7 aggregate amount of loans under this section a graduate or professional student may borrow shall be equal to #dj1jjj4 7#e7 ,the length of repayment-- 7,a7 for a loan borrowed by an undergraduate student shall be #ae years2 and 7,b7 for a loan borrowed by a graduate or professional student shall be #be years4 7#f7 ,repayment on a loan made under this section shall begin-- 7,a7 after #abe percent of the normal time for completion of the program of study for which the borrower receives the loan under this section2 or 7,b7 if the borrower withdraws from the program of study before the borrower completes the program1 #f months after the date the borrower withdraws4 7c7 ,authorization ,to limit loan amounts ,an institution of higher education that is required under ,state law to enroll all eligible applicants for an academic year may limit the amount of loans under this section that a student may borrow for such academic year to not more than the tuition and fees at such institution for such academic year4 7d7 ,additional charges ,the ,secretary may not charge the borrower of a loan made under this section any fee for administrative costs that is not described under this section4 7e7 ,repayment ,a borrower of a loan made under this section may accelerate without penalty repayment of the whole or any part of the loan4 4 #cjb4 ,phasing out loan forgiveness ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended-- 7#a7 in section #dee-- 7,a7 in subsection 7d71 by adding at the end the following3 7#f7 ,elimination of loan forgiveness ,notwithstanding any other provision of this ,act1 with respect to any loan made on or after #f months after the date of enactment of the ,higher ,education ,reform and ,opportunity ,act of #bjag1 the ,secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection4 2 7,b7 in subsection 7e71 by adding at the end the following3 7#h7 ,elimination of loan forgiveness ,notwithstanding any other provision of this ,act1 with respect to any loan made on or after #f months after the date of enactment of the ,higher ,education ,reform and ,opportunity ,act of #bjag1 the ,secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection4 2 and 7,c7 in subsection 7m71 by adding at the end the following3 7#e7 ,elimination of loan forgiveness ,notwithstanding any other provision of this ,act1 with respect to any loan made on or after #f months after the date of enactment of the ,higher ,education ,reform and ,opportunity ,act of #bjag1 the ,secretary may not cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection4 2 and 7#b7 in section #dic;,c1 by adding at the end the following3 7f7 ,elimination of loan forgiveness ,notwithstanding any other provision of this ,act1 with respect to any loan made on or after #f months after the date of enactment of the ,higher ,education ,reform and ,opportunity ,act of #bjag1 the ,secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this section4 4 ,,iv ,school accountability for student loans #dja4 ,school accountability for student loans ,section #dhg of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid71 as amended by section #bja1 is further amended-- 7#a7 in subsection 7a71 by adding at the end the following3 7#ca7 ,the institution will pay a default rate fine that is determined pursuant to subsection 7k74 2 and 7#b7 by adding at the end the following3 7k7 ,default rate fine 7#a7 ,in general ,each institution described in paragraph 7#b7 shall pay to the ,secretary a default rate fine in accordance with this subsection4 7#b7 ,applicable institutions ,an institution shall pay a default rate fine under this subsection for a fiscal year based on the cohort default rate on loans made1 insured1 or guaranteed under this title for such fiscal year4 7#c7 ,fine 7,a7 ,in general ,each institution described in paragraph 7#b7 shall pay a default rate fine for a fiscal year that is equal to #aj percent of the applicable amount determined under subparagraph 7,b77i7 for such fiscal year4 7,b7 ,applicable amount 7i7 ,in general ,the applicable amount for a fiscal year with respect to an institution shall be an amount equal to the product of the amount of loans made1 insured1 or guaranteed under this title for such fiscal year1 and the applicable rate determined in clause 7ii74 ,if the applicable rate is equal to or less than zero percent then the applicable amount shall be equal to zero4 7ii7 ,applicable rate ,the applicable rate for a fiscal year with respect to an institution shall be the rate that is equal to the difference between the default rate on loans made1 insured1 or guaranteed under this title for such fiscal year and the average rate of total unemployment in the ,united ,states for such fiscal year1 as determined by the ,secretary of ,labor4 7#d7 ,credit for certain institutions ,each institution that is described in paragraph 7#b7 shall receive a #djj credit for the fiscal year for each graduate of the institution during such fiscal year who received a ,federal ,pell ,grant while enrolled at the institution4 7#e7 ,flexibility in counsel and advice ,notwithstanding any other provision of the ,act1 the ,secretary shall grant institutions of higher education flexibility under this ,act to counsel and advise students on ,federal financial aid1 including granting flexibility for institutions to award less than the maximum amount of ,federal student aid for which an individual is eligible if the cost of tuition1 room1 and board at the institution is less than such maximum amount4 4