,i #aafth ,,congress #ast ,session ,h4 ,r4 #cdhg ,,in ,,the ,,house ,,of ,,representatives ,june #be1 #bjai,mr4 ,takano introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to improve the ,higher ,education ,act of #aife1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,protections and ,regulation for ,our ,students ,act or ,,pro ,students ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 #he-ae revenue source requirement for proprietary institutions4 ,sec4 #c4 ,definitions4 ,sec4 #d4 ,restriction on marketing with ,federal educational assistance funds4 ,sec4 #e4 ,whistleblower protections for persons associated with institutions of higher education4 ,sec4 #f4 ,establishment of complaint resolution and tracking system4 ,sec4 #g4 ,proprietary education oversight coordination committee4 ,sec4 #h4 ,improved determination of cohort default rates2 publication of default prevention plan4 ,sec4 #i4 ,amendments to terms and conditions of borrower defenses4 ,sec4 #aj4 ,improved student loan servicing and debt collection practices4 ,sec4 #aa4 ,improved disclosures1 counseling1 and financial assistance information for students4 ,sec4 #ab4 ,program participation agreements4 ,sec4 #ac4 ,improved disclosures for clinical training programs4 ,sec4 #ad4 ,civil penalties4 ,sec4 #ae4 ,requirements for accrediting agencies or associations4 ,sec4 #af4 ,program review and data4 ,sec4 #ag4 ,consumer protections for students4 #b4 #he-ae revenue source requirement for proprietary institutions 7a7 ,change from #ij-aj to #he-ae ,section #dhg7;a77#bd7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#bd77 is amended by striking ten percent and inserting #ae percent4 7b7 ,revisions to accounting ,section #dhg7;d77#a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;d77#a77 is amended-- 7#a7 in subparagraph 7,a71 by striking accounting1 and all that follows and inserting accounting22 7#b7 in subparagraph 7,b71 by striking clause 7iii7 and inserting the following new clause3 7iii7 a contractual arrangement with a ,federal agency for the purpose of providing job training to low-income individuals who are in need of such training2 2 7#c7 in subparagraph 7,c7-- 7,a7 by striking clauses 7i7 through 7iii7 and inserting the following new clause3 7i7 grant funds provided by a source that has no affiliation with the institution and shares no employees with the institution2 2 and 7,b7 by redesignating clause 7iv7 as clause 7ii72 and 7#d7 by striking subparagraphs 7,d7 and 7,e7 and inserting the following new subparagraphs3 7,d7 include no loans made by an institution of higher education as revenue to the school1 except for payments made by students on such loans2 7,e7 include a scholarship provided by the institution-- 7i7 only if the scholarship is in the form of monetary aid based upon the academic achievements or financial need of students1 disbursed to qualified student recipients during each fiscal year from an established restricted account2 and 7ii7 only to the extent that funds in that account represent designated funds1 or income earned on such funds1 from a source that has no affiliation with the institution and shares no employees with the institution2 and 4 7c7 ,effective date ,the amendments made by this section shall take effect #a year after the date of enactment of this ,act4 #c4 ,definitions 7a7 ,in general ,section #ajc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjc7 is amended-- 7#a7 by redesignating paragraphs 7#d7 through 7#i71 7#aj7 through 7#ad71 and 7#ae7 through 7#bd71 as paragraphs 7#e7 through 7#aj71 7#ab7 through 7#af71 and 7#ah7 through 7#bf71 respectively2 7#b7 by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,default manipulation ,the term default manipulation means engaging in a device or practice1 including branching1 consolidation of campuses1 consolidation or manipulation of the identification codes used by the ,office of ,postsecondary ,education to designate campuses and institutions1 change of ownership or control1 serial forbearance1 or any similar device or practice 7as determined by the ,secretary7 when1 but for the device or practice1 one or more campuses of an institution of higher education would be at risk of cohort default rate sanctions under section #dce or student default risk sanctions under section #dhi;,a4 2 7#c7 by inserting after paragraph 7#aj71 as redesignated by paragraph 7#a7 of this section1 the following new paragraph3 7#aa7 ,federal educational assistance funds ,the term ,federal educational assistance funds means any ,federal financial assistance provided1 under this ,act or any other ,federal law1 through a grant1 contract1 subsidy1 loan1 guarantee1 insurance1 or other means to an institution of higher education1 including ,federal financial assistance that is disbursed or delivered to an institution or on behalf of a student or to a student to be used to attend the institution1 except that such term shall not include any monthly housing stipend provided under the ,post-#i_/aa ,veterans ,educational ,assistance ,program under chapter #cc of title #ch1 ,united ,states ,code4 2 and 7#d7 by inserting after paragraph 7#af71 as redesignated by paragraph 7#a7 of this section1 the following new paragraph3 7#ag7 ,recruiting and marketing activity 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term recruiting and marketing activity means an activity that consists of any of the following3 7i7 ,any advertising or promotion activity1 including a paid announcement in newspapers1 magazines1 radio1 television1 billboards1 electronic media1 naming rights1 or any other public medium of communication1 including paying for a display or promotion at a job fair1 military installation1 or postsecondary education recruiting event4 7ii7 ,any effort to identify and attract prospective students1 directly or through a contractor or other third party1 including any contact concerning a prospective student's potential enrollment or application for grant1 loan1 or work assistance under title ,,iv or participation in preadmission or advising activities1 including-- 7,i7 paying employees responsible for overseeing enrollment and for contacting potential students in person1 by phone1 by email1 by internet communications1 or by other means1 regarding enrollment2 7,,ii7 compensating a person to provide to an institution of higher education contact information regarding prospective students1 including information obtained through websites established for such purpose2 and 7,,iii7 providing funds to a third party to create or maintain a website for the purpose of obtaining contact information regarding prospective students4 7iii7 ,any other activity as the ,secretary may determine4 7,b7 ,exception ,an activity that is required as a condition of receipt of funds by an institution under title ,,iv1 or under another applicable ,federal law1 shall not be considered to be a recruiting and marketing activity under subparagraph 7,a74 4 7b7 ,title ,,iv programs ,section #dha of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh7 is amended by adding at the end the following new subsection3 7g7 ,student default risk ,in this title1 the term student default risk means the percentage that is calculated by taking an institution's cohort default rate 7as defined in section #dce7m77 for the most recent fiscal year available1 and multiplying it by the percentage of students enrolled at such institution receiving a loan made1 insured1 or guaranteed under this title during the previous academic year4 4 #d4 ,restriction on marketing with ,federal educational assistance funds 7a7 ,repeal of existing provision ,the ,higher ,education ,opportunity ,act is amended by striking section #aai 7#bj ,u4,s4,c4 #ajaam74 7b7 ,insertion in ,higher ,education ,act of #aife and amendments ,part ,b of title ,i of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa et seq47 is amended by adding at the end the following new section3 #abd4 ,certification regarding the use of certain ,federal funds and restrictions on sources of funds for recruiting and marketing activities 7a7 ,prohibition ,no ,federal funds received under this ,act by an institution of higher education or other postsecondary educational institution may be used to pay any person for influencing or attempting to influence an officer or employee of any agency1 a ,member of ,congress1 an officer or employee of ,congress1 or an employee of a ,member of ,congress in connection with any ,federal action described in subsection 7b74 7b7 ,applicability ,the prohibition in subsection 7a7 applies with respect to the following ,federal actions3 7#a7 ,the awarding of any ,federal contract4 7#b7 ,the making of any ,federal grant4 7#c7 ,the making of any ,federal loan4 7#d7 ,the entering into of any ,federal cooperative agreement4 7#e7 ,the extension1 continuation1 renewal1 amendment1 or modification of any ,federal contract1 grant1 loan1 or cooperative agreement4 7c7 ,lobbying and earmarks ,no ,federal student aid funding under this ,act may be used to hire a registered lobbyist or pay any person or entity for securing an earmark4 7d7 ,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 activities4 7#b7 ,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#c7 ,reports ,each institution of higher education1 or other postsecondary educational institution1 that derives #fe percent or more of revenues from ,federal educational assistance funds shall report annually to the ,secretary and to ,congress and shall include in such report-- 7,a7 a statement of the institution's expenditures on advertising1 marketing1 and recruiting2 and 7,b7 a verification from an independent auditor that the institution is in compliance with the requirements of this subsection4 7e7 ,certification ,each institution of higher education or other postsecondary educational institution receiving ,federal funding under this ,act1 as a condition for receiving such funding1 shall annually certify to the ,secretary of ,education that the requirements of subsections 7a7 through 7d7 have been met4 7f7 ,actions ,to implement and enforce ,the ,secretary shall take such actions as are necessary to ensure that the provisions of this section are implemented and enforced4 4 #e4 ,whistleblower protections for persons associated with institutions of higher education 7a7 ,whistleblower ,protection ,program ,title ,i of the ,higher ,education ,act of #aife is amended by inserting after section #abc 7#bj ,u4,s4,c4 #ajaal7 the following new section3 #abd4 ,protection from retaliation for disclosure of certain information by persons associated with institutions of higher education 7a7 ,prohibition of retaliation 7#a7 ,in general ,an institution of higher education participating in programs under title ,,iv 7in this section referred to as an institution7 may not discharge1 demote1 or otherwise discriminate against any person as retaliation for-- 7,a7 such person disclosing to an individual or entity described in paragraph 7#b7 information such person reasonably believes evidences a violation of any law1 rule1 or regulation by the institution2 or 7,b7 assisting a person disclosing such information or providing information or documents for use in disclosing such information4 7#b7 ,individuals and entities covered ,the individuals and entities described in this paragraph are3 7,a7 ,a ,member of ,congress or a representative of a committee of ,congress4 7,b7 ,an ,executive agency 7as defined in section #aje of title #e1 ,united ,states ,code74 7,c7 ,the ,government ,accountability ,office4 7,d7 ,a law enforcement agency4 7,e7 ,a court or grand jury4 7,f7 ,a management official or other employee of an institution who has the responsibility to investigate1 discover1 or address misconduct4 7b7 ,investigation of complaints 7#a7 ,submission of complaint ,a person who believes that they have been subjected to a retaliation prohibited by subsection 7a7 may submit a complaint to the ,inspector ,general of the ,department of ,education 7in this section referred to as the ,inspector ,general74 ,unless the ,inspector ,general determines that the complaint is frivolous1 fails to allege a violation of subsection 7a71 or has previously been addressed in another ,federal or ,state judicial or administrative proceeding initiated by the complainant1 the ,inspector ,general shall investigate the complaint and1 upon completion of such investigation1 submit a report of the findings of the investigation to the complainant1 the institution concerned1 and the ,secretary4 7#b7 ,inspector general action 7,a7 ,determination or submission of report on findings ,except as provided under subparagraph 7,b71 the ,inspector ,general shall make a determination that a complaint is frivolous1 fails to allege a violation of subsection 7a71 or has previously been addressed in another ,federal or ,state judicial or administrative proceeding initiated by the complainant or submit a report under paragraph 7#a7 not later than #ahj days after receiving the complaint4 7,b7 ,extension of time ,if the ,inspector ,general is unable to complete an investigation in time to submit a report within the #ahj-;day period specified in subparagraph 7,a7 and the complainant agrees to an extension of time1 the ,inspector ,general shall submit a report under paragraph 7#a7 within such additional period of time1 up to #ahj days1 as shall be agreed upon between the ,inspector ,general and the complainant4 7#c7 ,prohibition on disclosure ,the ,inspector ,general may not respond to any inquiry or disclose any information from or about any person alleging retaliation1 except to the extent that such response or disclosure is-- 7,a7 made with the consent of the person alleging the retaliation2 7,b7 made in accordance with the provisions of section #eeb;a of title #e1 ,united ,states ,code1 or as required by any other applicable ,federal law2 or 7,c7 necessary to conduct an investigation of the alleged retaliation4 7#d7 ,time limitation ,a complaint may not be brought under this subsection more than three years after the date on which the alleged retaliation took place4 7c7 ,remedy and enforcement authority 7#a7 ,in general ,not later than #cj days after receiving an ,inspector ,general report pursuant to subsection 7b71 the ,secretary shall determine whether there is sufficient basis to conclude that the institution has violated subsection 7a7 and shall either issue an order denying relief or shall take one or more of the following actions3 7,a7 ,order the institution to take action to abate the retaliation4 7,b7 ,order the institution to reinstate the complainant to the position that the complainant held before the retaliation1 together with compensatory damages 7including back pay7 and any other benefits1 terms1 or conditions that would apply to the complainant in that position if the retaliation had not occurred4 7,c7 ,order the institution to pay the complainant an amount equal to the aggregate amount of all costs and expenses 7including attorneys' fees and expert witness fees7 that were reasonably incurred by the complainant for1 or in connection with1 bringing the complaint regarding the retaliation1 as determined by the ,secretary4 7#b7 ,exhaustion of remedies ,if the ,secretary issues an order denying relief under paragraph 7#a7 or has not issued an order within #baj days after the submission of a complaint under subsection 7b71 or in the case of an extension of time under subsection 7b77#b77;,b71 not later than #cj days after the expiration of the extension of time1 and there is no showing that such delay is due to the bad faith of the complainant1 the complainant shall be deemed to have exhausted all administrative remedies with respect to the complaint1 and the complainant may bring a de novo action at law or equity against the institution to seek compensatory damages and other relief available under this section in the appropriate district court of the ,united ,states1 which shall have jurisdiction over such an action without regard to the amount in controversy4 ,such an action shall1 at the request of either party to the action1 be tried by the court with a jury4 ,an action under this paragraph may not be brought more than two years after the date on which remedies are deemed to have been exhausted4 7#c7 ,admissibility of evidence ,the ,inspector ,general determination and order of the ,secretary denying relief under paragraph 7#b7 shall be admissible in evidence in any de novo action at law or equity brought pursuant to this subsection4 7#d7 ,enforcement of orders ,whenever a person fails to comply with an order issued under paragraph 7#a71 the ,secretary shall file an action for enforcement of such order in the ,united ,states district court for a district in which the retaliation was found to have occurred4 ,in any action brought under this paragraph1 the court may grant appropriate relief1 including injunctive relief1 compensatory and exemplary damages1 and attorneys' fees and costs4 ,the person upon whose behalf an order was issued may also file such an action or join in an action filed by the ,secretary4 7#e7 ,judicial review ,any person adversely affected or aggrieved by an order issued under paragraph 7#a7 may obtain review of the order's conformance with this subsection1 and any regulations issued to carry out this section1 in the ,united ,states court of appeals for a circuit in which the retaliation is alleged in the order to have occurred4 ,no petition seeking such review may be filed more than #fj days after issuance of the order by the head of the executive agency4 ,such review shall conform to chapter #g of title #e1 ,united ,states ,code4 ,filing such an appeal shall not act to stay the enforcement of the order of the ,secretary1 unless a stay is specifically entered by the court4 7#f7 ,burdens of proof ,the legal burdens of proof specified in section #abba7;e7 of title #e1 ,united ,states ,code1 shall be controlling for the purposes of any investigation conducted by the ,inspector ,general1 decision by the ,secretary1 or judicial or administrative proceeding to determine whether discrimination prohibited under this section has occurred4 7#g7 ,rights and remedies not waivable ,the rights and remedies provided for in this section may not be waived by any agreement1 policy1 form1 or condition of employment4 7d7 ,notification of persons associated with institution ,the ,secretary shall ensure that each institution informs the employees1 students1 and contractors of the institution in writing of the rights and remedies provided under this section4 7e7 ,construction ,nothing in this section may be construed to authorize the discharge of1 demotion of1 or discrimination against a person for a disclosure other than a disclosure protected by subsection 7a7 or to modify or derogate from a right or remedy otherwise available such person4 4 7b7 ,prohibition of ,retaliation ,section #dhg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77 is amended by adding at the end the following new paragraph3 7#cj7 ,the institution will comply with the requirements of section #abd4 4 #f4 ,establishment of complaint resolution and tracking system ,title ,i of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended by adding at the end the following new part3 ,f ,complaint ,tracking ,system #afa4 ,complaint tracking system 7a7 ,establishment of complaint tracking system 7#a7 ,establishment of complaint tracking system ,not later than #a year after the enactment of the ,,pro ,students ,act1 the ,secretary shall complete the establishment of a complaint tracking system that includes a single1 toll-free telephone number and a website to facilitate the centralized collection of1 monitoring of1 and response to complaints or inquiries regarding the educational practices and services1 and recruiting and marketing practices1 of all postsecondary educational institutions4 7#b7 ,establishment of complaint tracking office ,the ,secretary shall establish within the ,department an office whose functions shall include establishing1 administering1 and disseminating widely information about the complaint tracking system established under paragraph 7#a74 ,the ,secretary shall-- 7,a7 to the extent necessary1 combine and consolidate the other offices and functions of the ,department to ensure that the office established under this paragraph is the single point of contact for students and borrowers with complaints2 and 7,b7 to the extent practicable1 ensure that the office established in this paragraph will work with the ,student ,loan ,ombudsman appointed in accordance with section #ada7;f7 to assist borrowers that have complaints regarding the educational practices and services1 and recruiting and marketing practices1 of postsecondary educational institutions4 7b7 ,handling of complaints 7#a7 ,timely response to complaints ,the ,secretary shall establish1 in consultation with the heads of appropriate agencies1 reasonable procedures to provide a timely response to complainants1 in writing where appropriate1 to complaints against1 or inquiries concerning1 an institution of higher education that receives funds under this ,act4 ,each response shall include a description of-- 7,a7 the steps that have been taken by the ,secretary in response to the complaint or inquiry2 7,b7 any responses received by the ,secretary from the institution of higher education2 and 7,c7 any additional actions that the ,secretary has taken1 or plans to take1 in response to the complaint or inquiry4 7#b7 ,timely response to secretary by institution of higher education ,the ,secretary shall notify each institution of higher education that receives funds under this ,act and that is the subject of a complaint or inquiry under this section regarding the complaint or inquiry4 ,not later than #fj days after receiving such notice1 such institution shall provide a response to the ,secretary concerning the complaint or inquiry1 including-- 7,a7 the steps that have been taken by the institution to respond to the complaint or inquiry2 7,b7 all responses received by the institution from the complainant2 and 7,c7 any additional actions that the institution has taken1 or plans to take1 in response to the complaint or inquiry4 7#c7 ,further investigation ,the ,secretary may1 in the event that the complaint is not adequately resolved or addressed by the responses of the institution of higher education receiving funds under this ,act under paragraph 7#b71 ask additional questions of such institution or seek additional information from or action by the institution4 7#d7 ,provision of information 7,a7 ,in general ,an institution of higher education that receives funds under this ,act shall1 in a timely manner1 comply with a request by the ,secretary for information in the control or possession of such institution concerning a complaint or inquiry received by the ,secretary under subsection 7a71 including supporting written documentation1 subject to subparagraph 7,b74 7,b7 ,exceptions ,an institution of higher education that receives funds under this ,act shall not be required to make available under this subsection-- 7i7 any nonpublic or confidential information1 including any confidential commercial information2 7ii7 any information collected by the institution for the purpose of preventing fraud or detecting or making any report regarding other unlawful or potentially unlawful conduct2 or 7iii7 any information required to be kept confidential by any other provision of law4 7#e7 ,compliance ,an institution of higher education that receives funds under this ,act shall comply with the requirements to provide responses and information1 in accordance with this subsection1 as a condition of receiving such funds4 7c7 ,transparency 7#a7 ,sharing information with ,federal and ,state agencies ,as appropriate and in accordance with section #ddd of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;g7 7commonly referred to as the 8,family ,educational ,rights and ,privacy ,act of #aigd07 and other laws1 the ,secretary shall coordinate with the heads of relevant ,federal and ,state agencies to-- 7,a7 collect complaints related to the complaint tracking system described in subsection 7b7 from such agencies2 and 7,b7 when appropriate1 route such complaints to the ,department of ,education1 the ,department of ,justice1 the ,department of ,defense1 the ,department of ,veterans ,affairs1 the ,federal ,trade ,commission1 the ,consumer ,financial ,protection ,bureau1 or any equivalent ,state agency4 7#b7 ,interaction with existing complaint systems ,to the extent practicable1 all procedures established under this section1 and all coordination carried out under paragraph 7#a71 shall be done in accordance with the complaint tracking systems established under ,executive ,order #acfjg 7#gg ,fed4 ,reg4 #behfa2 relating to establishing principles of excellence for educational institutions serving servicemembers1 veterans1 spouses1 and other family members74 7#c7 ,public information 7,a7 ,in ,general ,the ,secretary shall regularly publish on the website of the ,department information on the complaints and inquiries received for each postsecondary educational institution under this section1 including-- 7i7 the number of complaints and inquiries received2 7ii7 the types of complaints and inquiries received2 and 7iii7 where applicable1 information about the resolution of the complaints and inquiries4 7,b7 ,data privacy ,in carrying out subparagraph 7,a71 the ,secretary shall-- 7i7 comply with applicable data privacy laws and regulations2 and 7ii7 ensure that personally identifiable information is not shared4 7#d7 ,reports ,each year1 the ,secretary shall prepare and submit to the authorizing committees a report describing-- 7,a7 the types and nature of complaints the ,secretary has received under this section2 7,b7 the extent to which complainants are receiving relief pursuant to this section2 7,c7 whether particular types of complaints are more common in a given sector of postsecondary educational institutions2 7,d7 any legislative recommendations that the ,secretary determines are necessary to better assist students and families2 and 7,e7 the schools with the highest volume of complaints1 as determined by the ,secretary4 7d7 ,complainant defined ,in this section1 the term complainant means a person with a complaint against1 or inquiry concerning1 an institution of higher education that receives funds under this ,act who is-- 7#a7 a student of a postsecondary educational institution2 7#b7 a family member of a student of a postsecondary educational institution2 7#c7 a third party acting on behalf of a student of a postsecondary educational institution2 or 7#d7 a staff member or employee of a postsecondary educational institution4 4 #g4 ,proprietary education oversight coordination committee ,title ,i of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 as amended by section #f of this ,act1 is further amended by adding at the end the following new part3 ,g ,proprietary ,education ,oversight ,coordination ,improvement #aff4 ,definitions ,in this part3 7#a7 ,executive officer ,the term executive officer1 with respect to a proprietary institution of higher education that is a publicly traded corporation1 means-- 7,a7 the president of such corporation2 7,b7 a vice president of such corporation who is in charge of a principal business unit1 division1 or function of such corporation 7including sales1 administration1 or finance72 or 7,c7 any other officer or person who performs a policy making function for such corporation4 7#b7 ,proprietary institution of higher education ,the term proprietary institution of higher education has the meaning given the term in section #ajb7;b74 7#c7 ,state approval agency ,the term ,state approval agency means any ,state agency that determines whether an institution of higher education is legally authorized within such ,state to provide a program of education beyond secondary education4 7#d7 ,veterans service organization ,the term veterans service organization means an organization recognized by the ,secretary of ,veterans ,affairs for the representation of veterans under section #eijb of title #ch1 ,united ,states ,code4 #afg4 ,establishment of ,committee 7a7 ,establishment ,there is established a committee to be known as the ,proprietary ,education ,oversight ,coordination ,committee 7referred to in this part as the ,committee7 and to be composed of the head 7or the designee of such head7 of each of the following3 7#a7 ,the ,department of ,education4 7#b7 ,the ,bureau of ,consumer ,financial ,protection4 7#c7 ,the ,department of ,justice4 7#d7 ,the ,securities and ,exchange ,commission4 7#e7 ,the ,department of ,defense4 7#f7 ,the ,department of ,veterans ,affairs4 7#g7 ,the ,federal ,trade ,commission4 7#h7 ,the ,department of ,labor4 7#i7 ,the ,internal ,revenue ,service4 7#aj7 ,at the discretion of the ,president1 any other relevant ,federal agency or department4 7b7 ,duties ,the ,committee shall have the following duties3 7#a7 ,coordinate ,federal oversight of proprietary institutions of higher education to-- 7,a7 improve enforcement of applicable ,federal laws and regulations2 7,b7 increase accountability of proprietary institutions of higher education to students and taxpayers2 and 7,c7 ensure the promotion of quality education programs4 7#b7 ,coordinate ,federal activities to protect students from unfair1 deceptive1 abusive1 unethical1 fraudulent1 or predatory practices1 policies1 or procedures of proprietary institutions of higher education4 7#c7 ,encourage information sharing among agencies related to ,federal investigations1 audits1 or inquiries of proprietary institutions of higher education4 7#d7 ,increase coordination and cooperation between ,federal and ,state agencies1 including ,state ,attorneys ,general and ,state approval agencies1 with respect to improving oversight and accountability of proprietary institutions of higher education4 7#e7 ,develop best practices and consistency among ,federal and ,state agencies in the dissemination of consumer information regarding proprietary institutions of higher education to ensure that students1 parents1 and other stakeholders have easy access to such information4 7c7 ,membership 7#a7 ,designees ,for any designee described in subsection 7a71 the head of the member entity shall appoint a high-level official who exercises significant decisionmaking authority for the oversight or investigatory activities and responsibilities related to proprietary institutions of higher education of the respective ,federal entity of such head4 7#b7 ,chair ,the ,secretary of ,education or the designee of the ,secretary shall serve as the ,chair of the ,committee4 7#c7 ,committee support ,the head of each entity described in subsection 7a7 shall ensure appropriate staff and officials of such entity are available to support the ,committee-related work of such entity4 #afh4 ,meetings 7a7 ,committee meetings ,the members of the ,committee shall meet regularly1 but not less than once during each quarter of each fiscal year1 to carry out the duties described in section #afg7;b74 7b7 ,meetings with ,state agencies and stakeholders ,the ,committee shall meet not less than once each fiscal year1 and shall otherwise interact regularly1 with ,state ,attorneys ,general1 ,state approval agencies1 veterans service organizations1 and consumer advocates to carry out the duties described in section #afg7;b74 #afi4 ,report 7a7 ,in general ,the ,committee shall annually submit to the authorizing committees1 and any other committee of ,congress that the ,committee determines appropriate1 a report on the activities of the ,committee4 7b7 ,public access ,each report described in subsection 7a7 shall be made available to the public in a manner that is easily accessible to parents1 students1 and other stakeholders in accordance with the best practices developed under section #afg7;b77#e74 7c7 ,contents 7#a7 ,in general ,each report under subsection 7a7 shall include-- 7,a7 an accounting of any action taken by the ,federal ,government1 any member entity of the ,committee1 or a ,state-- 7i7 to enforce ,federal or ,state laws and regulations applicable to proprietary institutions of higher education2 7ii7 to hold proprietary institutions of higher education accountable to students and taxpayers2 and 7iii7 to promote quality education programs2 7,b7 a summary of complaints against each proprietary institution of higher education received by any member entity of the ,committee2 7,c7 the data described in paragraph 7#b7 and any other data relevant to proprietary institutions of higher education that the ,committee determines appropriate2 and 7,d7 recommendations of the ,committee for such legislative and administrative actions as the ,committee determines are necessary to-- 7i7 improve enforcement of applicable ,federal laws2 7ii7 increase accountability of proprietary institutions of higher education to students and taxpayers2 and 7iii7 ensure the promotion of quality education programs4 7#b7 ,data 7,a7 ,industry-wide data ,each report under subsection 7a7 shall include data on all proprietary institutions of higher education that consists of information regarding-- 7i7 the total amount of ,federal funds provided to proprietary institutions of higher education during the previous academic year2 7ii7 the percentage of the total amount of ,federal funds provided to institutions of higher education 7as defined in section #ajb7 for such previous academic year that were provided to proprietary institutions of higher education for such previous academic year2 7iii7 the total amount of ,federal funds that proprietary institutions of higher education disbursed or delivered1 on behalf of a student1 or to a student to be used to attend an institution of higher education1 for the previous academic year1 disaggregated by-- 7,i7 educational assistance in the form of a loan provided under title ,,iv2 7,,ii7 educational assistance in the form of a grant provided under title ,,iv2 7,,iii7 educational assistance provided under chapter #cc of title #ch1 ,united ,states ,code2 7,,iv7 tuition assistance provided under section #bjjg of title #aj1 ,united ,states ,code2 7,v7 assistance provided under section #aghd;a of title #aj1 ,united ,states ,code2 and 7,,vi7 ,federal funds not described in subclauses 7,i7 through 7,v72 7iv7 the percentage of the total amount of ,federal funds provided to institutions of higher education 7as defined in section #ajb7 for such previous academic year for each of the programs described in subclauses 7,i7 through 7,v7 of clause 7iii7 that were provided to proprietary institutions of higher education for such previous academic year for each of such programs2 7v7 the average retention and graduation rates for students pursuing a degree at proprietary institutions of higher education2 7vi7 the average cohort default rate 7as defined in section #dce7m77 for proprietary institutions of higher education1 and an annual list of cohort default rates 7as defined in such section7 for all proprietary institutions of higher education2 7vii7 for careers requiring the passage of a licensing examination-- 7,i7 the passage rate of individuals who attended a proprietary institution of higher education taking such examination to pursue such a career2 and 7,,ii7 the passage rate of all individuals taking such exam to pursue such a career2 and 7viii7 the use of private education loans at proprietary institutions of higher education that includes-- 7,i7 an estimate of the total number of such loans2 and 7,,ii7 information on the average debt1 default rate1 and interest rate of such loans4 7,b7 ,data on publicly traded corporations 7i7 ,in general ,each report under subsection #i7;a7 shall include data on proprietary institutions of higher education that are publicly traded corporations1 consisting of information on-- 7,i7 any pre-tax profit of such proprietary institutions of higher education-- 7aa7 reported as a total amount and an average percentage of revenue for all such proprietary institutions of higher education2 and 7bb7 reported for each such proprietary institution of higher education2 7,,ii7 revenue for such proprietary institutions of higher education spent on recruiting and marketing activities1 student instruction1 and student support services1 reported-- 7aa7 as a total amount and an average percentage of revenue for all such proprietary institutions of higher education2 and 7bb7 for each such proprietary institution of higher education2 7,,iii7 total compensation packages of the executive officers of each such proprietary institution of higher education2 and 7,,iv7 a list of institutional loan programs offered by each such proprietary institution of higher education that includes information on the default and interest rates of such programs4 7ii7 ,disaggregated by ownership ,each report under subsection 7a7 shall include data on proprietary institutions of higher education that are publicly traded corporations1 disaggregated by corporate or parent entity1 brand name1 and campus1 consisting of-- 7,i7 the total cost of attendance for each program at each such proprietary institution of higher education1 and information comparing such total cost for each such program to-- 7aa7 the average cost of attendance for each program at public institutions of higher education2 and 7bb7 the average total cost of attendance for each program at all nonprofit institutions of higher education2 7,,ii7 total enrollment1 disaggregated by-- 7aa7 individuals enrolled in programs taken online2 and 7bb7 individuals enrolled in programs that are not taken online2 7,,iii7 the average retention and graduation rates for students pursuing a degree at such proprietary institutions of higher education2 7,,iv7 the percentage of students enrolled in such proprietary institutions of higher education who complete a program of such an institution within-- 7aa7 the standard period of completion for such program2 and 7bb7 a period that is #aej percent of such standard period of completion2 7,v7 the total cost of attendance for each program at such proprietary institutions of higher education2 7,,vi7 the average cohort default rate1 as defined in section #dce7m71 for such proprietary institutions of higher education1 and an annual list of cohort default rates 7as defined in such section7 for all proprietary institutions of higher education2 7,,vii7 the median educational debt incurred by students who complete a program at such a proprietary institution of higher education2 7,,viii7 the median educational debt incurred by students who start but do not complete a program at such a proprietary institution of higher education2 7,,ix7 the job placement rate for students who complete a program at such a proprietary institution of higher education and the type of employment obtained by such students2 7,x7 for careers requiring the passage of a licensing examination1 the rate of individuals who attended such a proprietary institution of higher education and passed such an examination2 and 7,,xi7 the number of complaints from students enrolled in such proprietary institutions of higher education who have submitted a complaint to any member entity of the ,committee4 7iii7 ,department of ,defense and ,veterans ,affairs assistance 7,i7 ,in general ,to the extent practicable1 each report under subsection 7a7 shall provide information on the data described in clause 7ii7 for individuals using1 to pay for the costs of attending such a proprietary institution of higher education1 ,federal funds provided under title #aj1 ,united ,states ,code1 or title #ch1 ,united ,states ,code4 7,,ii7 ,revenue ,each report under subsection 7a7 shall provide information on the revenue of proprietary institutions of higher education that are publicly traded corporations that is derived from the ,federal funds described in subclause 7,i74 7,c7 ,comparison data ,to the extent practicable1 each report under subsection 7a7 shall provide information comparing the data described in subparagraph 7,b7 for proprietary institutions of higher education that are publicly traded corporations with such data for public institutions of higher education disaggregated by ,state4 7#c7 ,accounting of any action ,for the purposes of paragraph 7#a77;,a71 the term any action shall include-- 7,a7 a complaint filed by a ,federal or ,state agency in a ,federal1 ,state1 local1 or tribal court2 7,b7 an administrative proceeding by a ,federal or ,state agency involving noncompliance of any applicable law or regulation2 or 7,c7 any other review1 audit1 or administrative process by any ,federal or ,state agency that results in a penalty1 suspension1 or termination from any ,federal or ,state program4 #agj4 ,warning list for parents and students 7a7 ,in general ,each academic year1 the ,committee shall publish a list to be known as the ,warning ,list for ,parents and ,students to be comprised of proprietary institutions of higher education-- 7#a7 that have engaged in illegal activity during the previous academic year as determined by a ,federal or ,state court2 7#b7 that have entered into a settlement resulting in a monetary payment for an unfair1 deceptive1 abusive1 unethical1 fraudulent1 or predatory practice1 policy1 or procedure2 7#c7 that have had any higher education program withdrawn or suspended2 or 7#d7 for which the ,committee has sufficient evidence of widespread or systemic unfair1 deceptive1 abusive1 unethical1 fraudulent1 or predatory practices1 policies1 or procedures that pose a threat to the academic success1 financial security1 or general best interest of students4 7b7 ,determinations ,in making a determination pursuant to subsection 7a77#d71 the ,committee may consider evidence that includes the following3 7#a7 ,any consumer complaint collected by any member entity of the ,committee4 7#b7 ,any complaint filed by a ,federal or ,state agency in a ,federal1 ,state1 local1 or tribal court4 7#c7 ,any administrative proceeding by a ,federal or ,state agency involving noncompliance of any applicable law or regulation4 7#d7 ,any other review1 audit1 or administrative process by any ,federal or ,state agency that results in a penalty1 suspension1 or termination from any ,federal or ,state program4 7#e7 ,data or information submitted by a proprietary institution of higher education to any accrediting agency or association recognized by the ,secretary of ,education pursuant to section #dif or the findings or adverse actions of any such accrediting agency or association4 7#f7 ,information submitted by a proprietary institution of higher education to any member entity of the ,committee4 7#g7 ,any other evidence that the ,committee determines relevant in making a determination pursuant to subsection 7a77#d74 7c7 ,publication 7#a7 ,in general ,not later than ,july #a of each fiscal year1 the ,committee shall publish the list described in subsection 7a7 prominently and in a manner that is easily accessible to parents1 students1 and other stakeholders in accordance with any best practices developed under section #afg7;b77#e74 7#b7 ,notice of self reporting ,in publishing the list in accordance with paragraph 7#a71 the ,committee shall note each institution that is included on the list due to an act described in subsection 7a7 that was reported by such institution4 4 #h4 ,improved determination of cohort default rates2 publication of default prevention plan ,section #dce of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhe7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#b71 by adding at the end the following new subparagraph3 7,d7 ,in any case where the ,secretary has determined that the institution has engaged in default manipulation1 the ,secretary-- 7i7 shall recalculate the cohort default rate for the institution under this section using corrected data and information1 for all fiscal years for which the default manipulation has occurred2 and 7ii7 using the recalculated cohort default rate1 shall redetermine under subsection 7a77#b7 whether the institution is ineligible to participate in a program under this title4 2 and 7,b7 in paragraph 7#g77;,a71 by adding at the end the following new clause3 7iii7 ,summary of default prevention plan ,upon receiving technical assistance from the ,secretary under clause 7ii71 each institution subject to this subparagraph shall-- 7,i7 prepare a summary of the plan described under clause 7i7 that is directed to a student audience2 7,,ii7 make the summary publicly available2 and 7,,iii7 provide the summary to students at the institution4 2 and 7#b7 in subsection 7m77#c71 by striking through the use of and all that follows through the period at the end and inserting through default manipulation4 #i4 ,amendments to terms and conditions of borrower defenses ,section #dee7;h7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7h77 is amended to read as follows3 7h7 ,borrower ,defenses 7#a7 ,in general ,notwithstanding any other provision of ,state or ,federal law1 a defense to repayment of a loan under this title includes-- 7,a7 a substantial misrepresentation under section #dhg7;c77#c72 7,b7 an act or omission that would give rise to a cause of action against the school under applicable ,state law2 or 7,c7 such further acts or omissions that the ,secretary determines appropriate4 7#b7 ,procedures 7,a7 ,in general ,the ,secretary shall1 with respect to a borrower defense under this subsection-- 7i7 determine the entitlement of a borrower to relief based on all evidence available to the ,department2 and 7ii7 provide an expeditious and fair process to consider applications provided by individuals1 groups1 and representatives on behalf of groups4 7,b7 ,independent determination ,a determination under subparagraph 7,a77i7 shall be independent of any action that the ,department may take to recoup from the school related to the borrower defense4 7,c7 ,cancellation of debt ,if the ,secretary determines under subparagraph 7,a77i7 that a borrower is entitled to relief1 the ,secretary shall cancel all outstanding debt1 and return any payments made on the loans of such borrower4 7#c7 ,regulations ,the ,secretary shall specify in regulations which acts or omissions of an institution of higher education a borrower may assert as a defense to repayment of a loan made under this part1 except that in no event may a borrower recover from the ,secretary1 in any action arising from or relating to a loan made under this part1 an amount in excess of the amount such borrower has repaid on such loan4 4 #aj4 ,improved student loan servicing and debt collection practices ,section #def of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;f7 is amended by adding at the end the following new subsection3 7c7 ,no predispute arbitration clauses ,a contract entered into under this section for the servicing of loans made or purchased under this part shall include a provision that any rights and remedies available to borrowers against the servicer may not be waived by any agreement1 policy1 or form1 including by a predispute arbitration agreement4 4 #aa4 ,improved disclosures1 counseling1 and financial assistance information for students ,section #dhe7l7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7l77 is amended-- 7#a7 by striking paragraph 7#a7 and inserting the following new paragraph3 7#a7 ,disclosure required prior to signing master promissory note ,each eligible institution shall1 prior to obtaining or arranging execution of a master promissory note for a loan under part ,d 7other than a ,federal ,direct ,consolidation ,loan7 by a first-time borrower at such institution1 ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan in accordance with paragraph 7#b74 ,such information-- 7,a7 shall be provided through the use of interactive programs that include mechanisms to check the borrower's comprehension of the terms and conditions of the borrower's loans under part ,d1 using simple and understandable language and clear formatting2 and 7,b7 shall be provided-- 7i7 during an entrance counseling session conducted in person2 or 7ii7 online4 2 and 7#b7 in paragraph 7#b71 by adding at the end the following new subparagraph3 7,l7 ,information relating to the institution's cohort default rate1 including-- 7i7 the cohort default rate1 as defined in section #dce7m71 of the institution2 7ii7 an easy to understand explanation of the cohort default rate2 7iii7 the percentage of students at the institution of higher education who borrow ,federal student loans under this title2 7iv7 the national average cohort default rate 7as determined by the ,secretary in accordance with section #dce7m772 7v7 in the case of an institution with a cohort default rate that is greater than the national average cohort default rate 7as described in clause 7iv771 a disclosure to the student that the institution's cohort default rate is above the national average2 and 7vi7 in the case of an institution with a cohort default rate that is greater than #cj percent1 a disclosure to the students that if the cohort default rate remains greater than #cj percent for the #c consecutive years-- 7,i7 the institution will lose institutional eligibility for the purposes of programs authorized under this title2 and 7,,ii7 the student will no longer be able to receive ,federal financial aid at that institution4 4 #ab4 ,program participation agreements 7a7 ,sense of ,congress regarding incentive compensation ,it is the sense of ,congress that-- 7#a7 incentive compensation is an inappropriate mechanism in the delivery of higher education for institutions of higher education wishing to participate in programs under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq472 and 7#b7 the ban on incentive compensation under section #dhg7;a77#bj7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#bj771 as amended by subsection 7b71 is intended to preclude its use by institutions wishing to participate in such programs1 at any point in the recruitment1 enrollment1 education1 or employment placement of students4 7b7 ,amendments ,section #dhg of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#ai71 by inserting housing facilities1 after libraries12 7,b7 by striking paragraph 7#bj7 and inserting the following3 7#bj7 7,a7 ,the institution or any third party acting on the institution's behalf1 including an institution affiliate or service provider to the institution1 will not provide any commission1 bonus1 or other incentive payment to any person or entity at any phase of the academic process based directly or indirectly on success in-- 7i7 securing enrollments or securing or awarding financial aid2 7ii7 performance in educational coursework2 7iii7 graduation2 7iv7 job placement2 or 7v7 any other academic facet of a student's enrollment in an institution of higher education4 7,b7 ,the requirements of subparagraph 7,a7 shall not apply to the recruitment of foreign students residing in foreign countries who are not eligible to receive ,federal student assistance4 2 and 7,c7 by adding at the end the following new paragraphs3 7#cj7 7,a7 ,the institution-- 7i7 shall not include a predispute arbitration agreement in any contract with a student or prospective student for enrollment at the institution2 and 7ii7 shall agree that1 in any case where a contract for enrollment at the institution entered into by a student before the date of enactment of the ,protections and ,regulation for ,our ,students ,act included a predispute arbitration agreement1 such agreement shall be invalid and unenforceable by the institution4 7,b7 ,in this paragraph1 the term predispute arbitration agreement means any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement4 7#ca7 7,a7 ,if the institution has a student default risk for a fiscal year1 as calculated by the ,secretary1 of #j4a or greater1 the institution will1 for such year-- 7i7 provide an individual accepted for enrollment at the institution with a waiting period1 beginning on the date that the individual receives notification of the acceptance and lasting for not less than #b weeks1 before the individual is required to enroll in the institution1 pay tuition charges1 or sign a master promissory note for a loan under this title1 in order to give the individual time to consider1 and compare among postsecondary options1 program costs at the institution and employment prospects upon completion of a program of study2 7ii7 ensure that the receipt of financial aid1 incentives1 or other benefits is not made contingent on an individual confirming enrollment before the end of the individual's waiting period2 7iii7 inform the individual1 in writing and in a manner determined by the ,secretary at the time of the acceptance notification1 of-- 7,i7 the individual's right to the #b-week waiting period under clause 7i7 beginning on the date that the individual receives notification of the acceptance2 and 7,,ii7 the reason why the institution is required to provide such waiting period2 7iv7 notify an individual accepted for enrollment at the institution of all financial aid determinations by not less than #a week before the enrollment confirmation deadline1 if all requested application forms are received from the individual on time2 and 7v7 disclose to an individual accepted for enrollment1 in a manner determined by the ,secretary1 that the individual may file a complaint through the complaint tracking system established under section #afa if the individual believes that the institution has violated any provision of this paragraph4 7,b7 ,if an institution described in subparagraph 7,a7 fails to meet the requirements of this paragraph1 the institution shall be subject to a civil penalty in accordance with section #dhi;,a4 7,c7 ,notwithstanding subparagraph 7,a71 the ,secretary may1 after providing notice and an opportunity to comment1 elect to replace the use of the student default risk percentage threshold established under subparagraph 7,a7 with a loan repayment rate threshold calculated in accordance with section #dhc;,d7b74 2 and 7#b7 in subsection 7c77#a77;,a77i71 by striking available and inserting made publicly available and provided4 #ac4 ,improved disclosures for clinical training programs ,section #dhe of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7 is amended by adding at the end the following new subsection3 7n7 ,reports relating to clinical training programs 7#a7 ,report on clinical training program agreements 7,a7 ,in ,general ,beginning in the year in which the ,protections and ,regulation for ,our ,students ,act is enacted1 an eligible institution that participates in any program under this title shall prepare and submit a report to the ,secretary containing the information described in subparagraph 7,c71 for every year in which the eligible institution has an agreement with a hospital or health facility1 through which-- 7i7 the eligible institution agrees to provide funding or other benefits to the hospital or health facility2 and 7ii7 that hospital or health facility provides opportunities for students at the institution to participate in a clinical training program4 7,b7 ,timing ,following the year in which the ,protections and ,regulation for ,our ,students ,act is enacted1 the report described in this paragraph shall be submitted not more than #cj days after the end of any year for which a report is required to comply with subparagraph 7,a74 7,c7 ,contents of ,report ,the report described in this paragraph shall include the following3 7i7 ,the amount of any payments from the institution of higher education to a hospital or health facility during the period covered by the report1 and the precise terms of any agreement under which such amounts are determined4 7ii7 ,any conditions associated with the transfer of money or the provision of clinical training program opportunities that are part of the agreement described in subparagraph 7,a74 7iii7 ,any memorandum of understanding between the institution of higher education1 or an alumni association or foundation affiliated with or related to such institution1 and a hospital or health facility1 that directly or indirectly relates to any aspect of any agreement referred to in subparagraph 7,a7 or controls or directs any obligations or distribution of benefits between or among any such entities4 7iv7 ,for each hospital or health facility that has an agreement described in subparagraph 7,a7 with the institution1 the number of clinical training positions at the hospital or health facility that are reserved for students at that institution4 7#b7 ,report on charitable donations 7,a7 ,in ,general ,beginning in the year in which the ,protections and ,regulation for ,our ,students ,act is enacted1 and annually thereafter1 an eligible institution shall prepare and submit to the ,secretary a report containing the information described in subparagraph 7,c7 if-- 7i7 the eligible institution made a charitable donation to a hospital or health facility in any of the previous #c years2 and 7ii7 the number of students from the eligible institution who participate in any clinical training program at the hospital or health facility where such a donation was made increases by more than #e students or #aj percent1 whichever is less1 as compared to the number of such students who participated in a clinical training program at that hospital or health facility during the first year in the previous #c-year period4 7,b7 ,timing ,following the year in which the ,protections and ,regulation for ,our ,students ,act is enacted1 the report described in subparagraph 7,a7 shall be submitted not more than #cj days after the end of any year for which a report is required to comply with subparagraph 7,a74 7,c7 ,contents of ,report ,the report described in this paragraph shall include the following3 7i7 ,the amount of each charitable donation that was made in the previous #c-year period by the eligible institution to a hospital or health facility4 7ii7 ,the number of students from the eligible institution who participate in any clinical training program at the hospital or health facility where each such donation was made-- 7,i7 during the year in which the report is submitted2 and 7,,ii7 during the first year in the previous #c-year period covered by the report4 7#c7 ,aggregation by institution ,the information required to be reported in this subsection shall include1 and shall be aggregated with respect to1 each institution of higher education and each alumni association or foundation affiliated with or related to such institution4 ,for any year in which an institution is required to submit a report described under paragraph 7#a7 and a report described under paragraph 7#b71 the institution may submit a single report for that year containing all of the information required under paragraphs 7#a7 and 7#b74 7#d7 ,report to ,congress ,the ,secretary1 in conjunction with the ,secretary of ,health and ,human ,services1 shall submit to ,congress1 and make available to the public1 an annual report that lists the reports submitted to the ,secretary by each institution of higher education in accordance with this subsection4 7#e7 ,public disclosure ,each eligible institution described in paragraph 7#a7 or 7#b7 of this subsection shall make readily available the reports described in such paragraph 7as applicable71 through appropriate publications1 mailings1 and electronic media to the general public4 7#f7 ,definitions ,in this subsection3 7,a7 ,clinical training program ,the term clinical training program means any program at1 or associated or affiliated with1 a hospital or health facility 7or any of a hospital's affiliates or health facility's affiliates71 the completion of which fulfills a requirement that is necessary to receive a license1 certificate1 specialized accreditation1 or other academically related pre-condition necessary under ,federal or ,state law for a health profession4 7,b7 ,health facility ,the term health facility has the meaning given that term in section #hjd7;d74 7,c7 ,hospital ,the term hospital has the meaning given that term in section #ahfa of the ,social ,security ,act 7#db ,u4,s4,c4 #aciex74 4 #ad4 ,civil penalties ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by inserting after section #dhi the following new section3 #dhi;,a4 ,civil penalties and other remedies 7a7 ,sanctions for substantial misrepresentations or serious violations 7#a7 ,civil ,penalties ,the ,secretary may impose a civil penalty upon an eligible institution upon making a determination1 after reasonable notice and opportunity for a hearing1 that an eligible institution has engaged in a substantial misrepresentation or other serious violation4 7#b7 ,amount of civil penalties ,a civil penalty imposed for a violation under subparagraph 7,a7 shall be not less than #ajj1jjj or-- 7,a7 in the case of a first violation1 an amount equal to the product of #a1jjj1jjj multiplied by the institution's student default risk1 whichever is larger2 7,b7 in the case of a second violation1 an amount equal to the product of #b1jjj1jjj multiplied by the institution's student default risk1 whichever is larger2 and 7,c7 in the case of a third or subsequent violation1 an amount equal to the product of #c1jjj1jjj multiplied by the institution's student default risk1 whichever is larger4 7#c7 ,treatment of multiple institutions ,for the purpose of determining the number of violations for subparagraph 7,b71 any violation by a particular institution will accrue against all identification codes used by the ,office of ,postsecondary ,education to designate campuses and institutions affiliated with the institution1 and within the period of participation for the institution1 as defined in section #ffh4ac7;b7 of title #cd1 ,code of ,federal ,regulations1 or any successor regulation4 7b7 ,sanctions for other violations of this title ,upon determination1 after reasonable notice and opportunity for a hearing1 that an eligible institution has engaged in a violation of any other provision of this title1 including the failure to carry out any provision of this title1 that is not a significant misrepresentation or other serious violation1 the ,secretary may impose a civil penalty upon such institution of not more than #ajj1jjj 7subject to such adjustments for inflation as the ,secretary may prescribe by regulation7 for each such violation4 7c7 ,civil penalties and sanctions for officers of institutions ,upon determination1 after reasonable notice and an opportunity for a hearing on the record1 that an officer of an institution of higher education that participates in a program under this title has knowingly and willfully1 or with gross negligence1 violated a provision of this title1 the ,secretary may sanction the officer4 ,such sanctions may include the following3 7#a7 ,prohibiting the institution of higher education that has employed the officer of an institution of higher education and that participates in a program under this title1 or any other institution of higher education that participates in a program under this title1 from employing the officer1 except that any such prohibition under this subsection shall not be for a period of more than #e years from the date of the determination of the violation4 7#b7 ,assessing a civil penalty against an officer of an institution of higher education who has knowingly and willfully1 or with gross negligence1 violated a provision of this title1 except that any such civil penalty under this subsection shall not be greater than the amount of the officer's compensation for each year for which the violations are determined to have occurred4 ,for purposes of this subparagraph1 an officer's compensation shall include proceeds of any sales of stock and any incentive-based compensation 7including stock options awarded as compensation7 based on information required to be reported to the ,secretary or any other ,federal agency during the period in which the violations are determined to have occurred4 7d7 ,limitation1 suspension1 or termination of eligibility status 7#a7 ,in general ,upon determination1 after reasonable notice and opportunity for a hearing1 that an eligible institution has engaged in a violation of any provision of this title 7including the failure to carry out any provision of this title or any regulation prescribed under such provision7 or a violation of any applicable special arrangement1 agreement1 or limitation1 the ,secretary may limit1 suspend1 or terminate the participation in any program under this title of an eligible institution1 subject to the requirements of paragraph 7#b74 7#b7 ,suspension procedures ,no period of suspension under this section shall exceed #fj days unless the institution and the ,secretary agree to an extension or unless limitation or termination proceedings are initiated by the ,secretary within that period of time4 7e7 ,emergency action 7#a7 ,in general ,the ,secretary may take an emergency action against an institution1 under which the ,secretary shall1 effective on the date on which a notice and statement of the basis of the action is mailed to the institution 7by registered mail1 return receipt requested71 withhold funds from the institution or its students and withdraw the institution's authority to obligate funds under any program under this title1 if the ,secretary-- 7,a7 receives information1 determined by the ,secretary to be reliable1 that the institution is violating any provision of this title1 any regulation prescribed under this title1 or any applicable special arrangement1 agreement1 or limitation2 7,b7 determines that immediate action is necessary to prevent misuse of ,federal funds2 and 7,c7 determines that the likelihood of loss outweighs the importance of the procedures prescribed in subsection 7e7 for limitation1 suspension1 or termination4 7#b7 ,time limitation ,an emergency action described in paragraph 7#a7 shall not exceed #cj days unless limitation1 suspension1 or termination proceedings are initiated by the ,secretary against the institution within that period of time4 7#c7 ,opportunity to show cause ,the ,secretary shall provide an institution that is the subject of an emergency action under this subsection an opportunity to show cause1 if the institution so requests1 that the emergency action is unwarranted and should be lifted4 7f7 ,lifting of sanctions ,notwithstanding any other provision of this title1 an institution of higher education that has been sanctioned by the ,secretary under this section or any other provision of this title may not have such sanctions lifted until the ,secretary has conducted a subsequent program review under section #dih;,a and has found the institution to be in compliance with this title4 7g7 ,single course of conduct2 compromise authority and collection of penalty 7#a7 ,same course of conduct ,for purposes of this section1 acts and omissions relating to a single course of conduct shall be treated as a single violation4 7#b7 ,compromise authority ,any civil penalty under this section may be compromised 7but not eliminated7 by the ,secretary4 ,in determining the amount of such penalty1 or the amount agreed upon in compromise1 the ,secretary shall consider-- 7,a7 the appropriateness of the penalty to the size of the institution of higher education subject to the determination2 and 7,b7 the gravity of the violation1 failure1 or misrepresentation4 7h7 ,collection of penalty ,the amount of any penalty under this section may be deducted from any sums owing by the ,united ,states to the institution charged4 7i7 ,disposition of amounts recovered 7#a7 ,in general ,amounts collected under this section shall be transferred to the ,secretary1 who shall determine the distribution of collected amounts1 in accordance with paragraphs 7#b7 and 7#c74 7#b7 ,use for program integrity efforts and program reviews 7,a7 ,in general ,for each fiscal year1 an amount equal to not more than #ej percent of the amounts recovered or collected under this section-- 7i7 shall be available to the ,secretary to carry out program reviews under section #dih;,a and other efforts by the ,secretary related to program integrity under part ,h2 and 7ii7 may be credited1 if applicable1 for that purpose by the ,secretary to any appropriations and funds that are available to the ,secretary for obligation at the time of collection4 7,b7 ,supplement not supplant ,amounts made available under subparagraph 7,a7 shall be used to supplement and not supplant any other amounts available to the ,secretary for the purpose described in such subparagraph4 7,c7 ,availability for funds ,any amounts collected under this section that are made available under paragraph 7#b7 shall remain available until expended4 7#c7 ,use for student relief fund ,for each fiscal year1 an amount equal to not less than #ej percent of the amounts recovered or collected under this section shall be deposited into the ,student ,relief ,fund established under subsection 7k74 7#d7 ,report ,the ,secretary shall regularly publish1 on the website of the ,department1 a detailed description that includes-- 7,a7 the amount of funds that were distributed for the purposes described in paragraph 7#b7 and the amount used for the ,student ,relief ,fund under paragraph 7#c72 and 7,b7 how funds were distributed among the purposes described in paragraph 7#b77;,a77i74 7j7 ,student relief fund 7#a7 ,establishment ,the ,secretary shall establish a ,student ,relief ,fund 7referred to in this subsection as the ,fund7 that shall be used1 subject to the availability of funds1 to provide financial relief to any student enrolled in an institution of higher education that-- 7,a7 has failed to comply with an eligibility requirement under section #aja or #ajb or an obligation incurred under the terms of the program participation agreement under section #dhg2 or 7,b7 has been sanctioned under subsection 7b7 or 7c74 7#b7 ,determination of relief ,the ,secretary1 in consultation with ,director of the ,bureau of ,consumer ,financial ,protection-- 7,a7 shall determine the manner of relief to be provided under paragraph 7#a71 which may include tuition reimbursement1 full or partial loan forgiveness1 or loan reinstatement2 and 7,b7 may issue regulations regarding how the amounts in the ,fund will be distributed among students eligible for the funds4 7#c7 ,treatment and availability of funds 7,a7 ,funds that are not government funds ,funds obtained by or transferred to the ,fund shall not be construed to be ,government funds or appropriated monies4 7,b7 ,amounts not subject to apportionment ,notwithstanding any other provision of law1 amounts in the ,fund shall not be subject to apportionment for purposes of chapter #ae of title #ca1 ,united ,states ,code1 or under any other authority4 7,c7 ,no fiscal year limitation ,sums deposited in the ,fund shall remain in the ,fund and be available for expenditure under this chapter without fiscal year limitation4 7#d7 ,investments 7,a7 ,amounts in fund may be invested ,the ,secretary of ,education may request the ,secretary of the ,treasury to invest the portion of the ,fund that is not1 in the discretion of the ,secretary of ,education1 required to meet the current needs of the ,fund4 7,b7 ,eligible investments ,investments shall be made by the ,secretary of the ,treasury in obligations of the ,united ,states or obligations that are guaranteed as to principal and interest by the ,united ,states1 with maturities suitable to the needs of the ,fund as determined by the ,secretary on the record4 7,c7 ,interest and proceeds credited ,the interest on1 and the proceeds from the sale or redemption of1 any obligations held in the ,fund shall be credited to the ,fund4 7#e7 ,regulations ,the ,secretary shall prescribe regulations to implement the requirements of this section within #a year after the date of enactment of the ,,pro ,students ,act4 7#f7 ,authorization of appropriations ,in addition to funds derived from financial penalties assessed pursuant to subsection 7j71 there are authorized to be appropriated such sums as may be necessary to carry out this subsection4 7k7 ,state enforcement 7#a7 ,in general ,any violation of subsection 7b71 including the regulations promulgated under such subsection1 shall be a cause of action enforceable by the ,state1 through the attorney general 7or the equivalent thereof7 of the ,state1 in any district court of the ,united ,states in that ,state or in a ,state court that is located in that ,state and that has jurisdiction over the defendant4 ,the ,state may seek any relief provided under paragraph 7#d77;,b7 for such violation1 or any remedies otherwise provided under law4 7#b7 ,notice required 7,a7 ,in general ,before initiating any action in a court or other administrative or regulatory proceeding against any institution of higher education as authorized by paragraph 7#a7 to enforce any provision of this subsection1 including any regulation promulgated by the ,secretary under this subsection1 a ,state attorney general shall timely provide a copy of the complete complaint to be filed and written notice describing such action or proceeding to the ,secretary1 except as provided in subparagraph 7,b74 7,b7 ,emergency action ,if prior notice of the initiation of an action or administrative or regulatory proceeding required under subparagraph 7,a7 is not practicable1 the ,state attorney general shall provide a copy of the complete complaint and the notice to the ,secretary immediately upon instituting the action or proceeding4 7,c7 ,contents of notice ,the notification required under this subparagraph shall include-- 7i7 the identity of the parties2 7ii7 the alleged facts underlying the proceeding2 and 7iii7 whether there may be a need to coordinate the prosecution of the proceeding so as not to interfere with any action1 including any rulemaking1 undertaken by the ,secretary or another ,federal agency4 7#c7 ,regulations ,the ,secretary shall prescribe regulations to implement the requirements of this subsection and periodically provide guidance to further coordinate actions with the ,state attorneys general4 7#d7 ,preservation of state authority 7,a7 ,state claims ,nothing in this subsection shall be construed as altering1 limiting1 or affecting the authority of a ,state attorney general or any other regulatory or enforcement agency or authority to bring an action or other regulatory proceeding arising solely under the law in effect in that ,state4 7,b7 ,relief 7i7 ,in general ,relief under this subsection may include1 without limitation-- 7,i7 rescission or reformation of contracts2 7,,ii7 refund of moneys or return of real property2 7,,iii7 restitution2 7,,iv7 disgorgement or compensation for unjust enrichment2 7,v7 payment of damages or other monetary relief pursuant to the requirements of paragraph 7#b72 7,,vi7 public notification regarding the violation1 including the costs of notification2 and 7,,vii7 limits on the activities or functions of the person4 7ii7 ,exclusion ,relief under this subsection shall not include the ability to suspend or terminate the eligibility status of an institution of higher education for programs under this title4 7l7 ,definitions ,in this section3 7#a7 ,officer of an institution of higher education ,the term officer of an institution of higher education includes the president1 chief executive officer1 and chief financial officer of an institution of higher education or their equivalents4 7#b7 ,substantial misrepresentation or other serious violation ,the term substantial misrepresentation or other serious violation means any of the following3 7,a7 ,a substantial misrepresentation regarding-- 7i7 the nature of the educational program of an institution of higher education2 7ii7 the financial charges of the institution2 7iii7 the space availability in a program of the institution for which a student is considering enrollment2 7iv7 the admission requirements of the institution2 7v7 the transferability of credits from the institution2 7vi7 whether a program of the institution meets the necessary standards to qualify students to sit for licensing examinations1 or obtain certification required as a precondition for employment1 in the ,state in which the students reside2 7vii7 the passage rates of students at the institution in obtaining certification requirements2 7viii7 the passage rates of students who sit for licensing examinations2 or 7ix7 the employability of the graduates of the institution4 7,b7 ,failure of an institution subject to the requirements of section #dhg7;a77#cb7 to comply with such section4 7,c7 ,a knowing and willful misuse of ,federal student aid from any source4 7,d7 ,a violation of section #dhg7;a77#bj74 7,e7 ,a violation of the default manipulation regulations promulgated by the ,secretary under section #dce7m77#c74 7,f7 ,failure to comply with the program review process described in section #dih;,a1 including any disclosure requirement described in paragraph 7#b77;,c7 or 7#e7 of section #dih;,a7b74 7,g7 ,a violation of the program integrity regulations promulgated by the ,secretary under this ,act4 7,h7 ,a violation of this ,act that the ,secretary has determined1 by regulation1 to be a serious violation for purposes of this section4 4 #ae4 ,requirements for accrediting agencies or associations ,section #dif7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;b7a77 is amended-- 7#a7 in paragraph 7#g71 by striking and after the semicolon2 7#b7 in paragraph 7#h71 by striking the period and inserting 2 and2 and 7#c7 by adding at the end the following new paragraph3 7#i7 such agency or association does not require any institution to enter into predispute arbitration agreements with the students of the institution4 4 #af4 ,program review and data ,section #dih;,a of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;c-#a7 is amended to read as follows3 #dih;,a4 ,program review and data 7a7 ,program reviews for institutions participating under title ,,iv 7#a7 ,in general ,the ,secretary-- 7,a7 may conduct program reviews1 including on-site visits1 of each institution of higher education participating in a program authorized under this title2 and 7,b7 shall conduct a program review under this subsection of each institution of higher education that poses a significant risk of failure to comply with this title1 as described in paragraphs 7#b7 and 7#c74 7#b7 ,mandatory reviews 7,a7 ,in general ,the ,secretary shall1 on an annual basis1 conduct program reviews of each institution of higher education participating in a program authorized under this title that meets #a or more of the following criteria3 7i7 ,the ,secretary determines that-- 7,i7 more than #ae percent of the students enrolled at the institution have received a ,federal ,direct ,unsubsidized ,stafford ,loan during the previous year2 and 7,,ii7 the institution has a cohort default rate1 as defined in section #dce7m71 that is more than #bj percent4 7ii7 ,the ,secretary determines that-- 7,i7 the institution has a cohort default rate1 as defined in section #dce7m71 that exceeds the national average1 as determined by the ,secretary in accordance with such section2 and 7,,ii7 the institution has an aggregate amount of defaulted loans1 as determined by the ,secretary1 that places the institution in the highest #a percent of institutions participating in programs authorized under this title in terms of the aggregate amount of defaulted loans4 7iii7 ,in the case of proprietary institutions of higher education1 the institution received more than #hj percent of the institution's revenues from ,federal funds as defined in section #aff7b71 during the #b most recent years for which data is available4 7iv7 ,the institution is among the top #a percent of institutions participating in programs authorized under this title in terms of numbers or rates of complaints related to ,federal student financial aid1 educational practices and services1 or recruiting and marketing practices1 as reported in the complaint tracking system established under section #afa4 7v7 ,as of the date of the determination1 the institution is among the top #a percent of institutions in terms of low graduation rates1 as determined by the ,secretary1 of all institutions participating in programs authorized under this title4 7vi7 ,the institution spends more than #bj percent of the institution's revenues on recruiting and marketing activities and executive compensation4 7vii7 ,in the fiscal year immediately following the most recent cohort default rate period-- 7,i7 the institution's loan defaults increased by #ej percent or more as compared to the preceding period2 and 7,,ii7 more than #ej percent of the students attending the institution received loans under this title4 7viii7 ,the institution1 or an executive of the institution1 has publicly acknowledged or disclosed that the institution-- 7,i7 is in violation or noncompliance with any provision of law administered by a relevant ,federal agency or relevant ,state entity or agency2 or 7,,ii7 is being investigated regarding a potential violation of such provision of law4 7ix7 ,the institution-- 7,i7 is a proprietary institution of higher education that has acquired a nonprofit institution of higher education at any point during the #a-year period preceding the date of the determination2 or 7,,ii7 was a proprietary institution of higher education and has become a nonprofit institution of higher education at any time during the #a-year period preceding the date of the determination4 7,b7 ,publication of institutions reviewed ,the ,secretary shall-- 7i7 post1 on a publicly available website1 the name of each institution of higher education that is reviewed under subparagraph 7,a72 7ii7 indicate1 on such website1 with respect to each such institution1 which of the mandatory review criteria1 as described in subparagraph 7,a71 such institution met2 and 7iii7 indicate on the ,college ,navigator website of the ,department1 or any successor website1 the name of each institution of higher education that is reviewed under subparagraph 7,a74 7,c7 ,institutional disclosure of review ,each institution of higher education that is reviewed under subparagraph 7,a7 shall-- 7i7 post on the home page of the institution's website that the institution will be subject to a mandatory program review and why the institution is being reviewed and shall maintain such posting and explanation for #a year or until the ,secretary has issued its final program review report under subsection 7c77#e77;,c71 whichever occurs sooner2 7ii7 provide a clear1 conspicuous disclosure of the information described in clause 7i7 to students who inquire about admission to the institution or submit an application for admission to the institution prior to the student signing an enrollment agreement with the institution1 for #a year or until the ,secretary has issued the final program review report under subsection 7c77#f77;,c71 whichever occurs sooner2 and 7iii7 include the information described in clause 7i7 on materials of acceptance or admission submitted to each student before the student enrolls in the institution1 for #a year or until the ,secretary has issued the final program review report under subsection 7c77#f77;,c71 whichever occurs sooner4 7#c7 ,risk-based reviews 7,a7 ,in general ,the ,secretary shall use a risk-based approach to select1 on an annual basis not less than #b percent of institutions of higher education participating in a program authorized under this title that are not reviewed under paragraph 7#b71 for a program review4 ,such approach shall prioritize program reviews of institutions that-- 7i7 have received large increases in funding under this title during the #e-year period preceding the date of the determination2 7ii7 have a large proportion of overall revenue from ,federal funds1 as defined in section #aff7b72 7iii7 have a significant fluctuation in ,federal ,direct ,stafford ,loan volume1 ,federal ,pell ,grant award volume1 or any combination thereof1 in the year for which the selection is made1 compared to the year prior to such year1 that is not accounted for by changes in the ,federal ,direct ,stafford ,loan program1 the ,federal ,pell ,grant program1 or any combination thereof2 7iv7 have experienced sharp increases in enrollment in absolute numbers or rate of growth2 7v7 have high rates of defaults1 relative to all other institutions of higher education participating in a program authorized under this title1 for loans issued under this title over the lifetime of the loans2 7vi7 have a large aggregate dollar amount of loans under this title in default1 or a high cohort default rate as described in section #dce7m72 7vii7 have a high student default risk1 as compared to the student default risk for all institutions participating in a program under this title2 7viii7 have a high proportion or high rate of complaints related to ,federal student financial aid1 educational practices and services1 or recruiting and marketing practices1 as reported in the complaint tracking system established under section #afa2 7ix7 have extremely low graduation rates1 as determined by the ,secretary2 7x7 are in poor financial health according to financial responsibility standards described in section #dih7;c72 7xi7 are spending a large percentage of the institution's revenues on recruiting and marketing activities and executive compensation2 7xii7 in the case of proprietary institutions of higher education1 have large profit margins and profit growth2 7xiii7 have been put on notice1 warning1 or probation by1 or is subject to a show cause order from1 a nationally recognized accrediting agency or association that is recognized by the ,secretary pursuant to part ,h of title ,,iv2 7xiv7 has been found to have compliance problems under this title1 or is at significant risk of failing to comply with applicable ,federal or ,state laws1 by a relevant ,federal agency or a relevant ,state entity or agency1 including the ,comptroller ,general of the ,united ,states2 7xv7 has had a large amount of funds returned under section #dhd;,b2 or 7xvi7 in the case of proprietary institutions of higher education1 have experienced a change in ownership or control of the institution1 including a buyout4 7,b7 ,criteria for risk-based reviews ,the ,secretary shall publish1 and update as necessary1 the specific criteria that the ,secretary will use to determine which institutions of higher education are selected for risk-based reviews under subparagraph 7,a74 7#d7 ,public disclosure of violations ,the ,secretary shall-- 7,a7 post on the ,college ,navigator website1 or any successor website1 of the ,department1 the name of each institution of higher education that is found to have violated a provision of this title knowingly and willfully or with gross negligence2 7,b7 indicate on such website1 with respect to each such institution1 which of the provisions of this title the institution violated2 and 7,c7 maintain such posting until the date the institution of higher education rectifies the violation or the date that is #a year after the date the ,secretary issues the final program review report under subsection 7c77#f77;,c7 with respect to such institution1 whichever date is later4 7#e7 ,institutional disclosure of violations ,each institution of higher education that is found to have violated a provision of this title knowingly and willfully or with gross negligence shall-- 7,a7 not later than #ae days after the date of issuance of the final program review report containing the finding1 post on the home page of the institution's website that the institution has been found to have violated a provision of this title knowingly and willfully or with gross negligence1 including the provision the institution was found to have violated2 7,b7 maintain such posting until the date the institution rectifies the violation or the date that is #a year after the date the ,secretary issues the final program review report under subsection 7c77#f77;,c7 with respect to such institution1 whichever date is later2 and 7,c7 include the information described in subparagraph 7,a7 on materials of acceptance or admission submitted to each student before the student enrolls in the institution until the date the institution rectifies the violation or the date that is #a year after the date the ,secretary issues the final program review report under subsection 7c77#f77;,c7 with respect to such institution1 whichever date is later4 7b7 ,characteristics of program reviews 7#a7 ,notice ,the ,secretary may give not more than #gb hours notice to an institution of higher education that will undergo a program review pursuant to subsection 7b7 of such review4 7#b7 ,sharing of information ,the ,secretary shall share all final program review determinations conducted under this section with relevant ,federal agencies and relevant ,state entities or agencies1 and appropriate accrediting agencies and associations1 to enable such agencies1 entities1 and associations to determine the eligibility of institutions for funds or accreditation4 7#c7 ,interaction with other ,federal agencies and laws ,to the extent practicable1 the ,secretary shall coordinate program reviews conducted under this section with other reviews and audits conducted by the ,department1 and with relevant ,federal agencies and relevant ,state entities or agencies4 7#d7 ,violations discovered through program review 7,a7 ,violations of this title ,if1 in the course of conducting a program review1 the ,secretary obtains evidence that any institution of higher education or person has engaged in conduct that may constitute a violation of this title1 including a failure to fully comply with the program review process and reporting requirements under this section1 the ,secretary may sanction such institution or person1 pursuant to section #dhi;,a4 7,b7 ,violations of other ,federal laws ,if1 in the course of conducting a program review1 the ,secretary obtains evidence that any institution of higher education or person has engaged in conduct that may constitute a violation of ,federal law1 the ,secretary shall transmit such evidence to the ,attorney ,general of the ,united ,states1 the ,director of the ,bureau of ,consumer ,financial ,protection1 the ,commissioner of the ,federal ,trade ,commission1 or the head of any other appropriate ,federal agency who may institute proceedings under appropriate law4 7,c7 ,rule of construction ,nothing in this paragraph shall be constructed to affect any other authority of the ,secretary to disclose information4 7#e7 ,conduct of reviews ,when conducting program reviews under this section1 the ,secretary shall assess the institution of higher education's compliance with the provisions of this title4 ,each program review shall include1 at a minimum1 the following3 7,a7 ,with regard to the institutional information1 the ,secretary shall assess financial capability1 administrative capability1 and program integrity1 including whether the institution-- 7i7 knowingly and willfully misused ,federal student aid from any source2 7ii7 violated section #dhg7;a77#bj72 7iii7 engaged in any substantial misrepresentation or other serious violation1 as defined in section #dhi;,a2 or 7iv7 violated the program integrity regulations promulgated by the ,secretary under this ,act4 7,b7 ,with regard to student information1 the ,secretary shall examine-- 7i7 graduation rates compared with all other institutions participating in a program authorized under this title2 7ii7 student complaints1 including interviews with current and former students1 faculty and staff1 and accrediting agencies2 and 7iii7 information from the complaint data system established under section #afa4 7#f7 ,administrative process 7,a7 ,training ,the ,secretary shall provide training1 including investigative training1 to personnel of the ,department designed to improve the quality of financial and compliance audits and program reviews conducted under this section1 including instruction about appropriately and effectively conducting such audits and reviews for institutions of higher education from different sectors of higher education4 7,b7 ,carrying out program reviews ,in carrying out program reviews under this section1 the ,secretary shall-- 7i7 establish guidelines designed to ensure uniformity of practice in the conduct of such reviews2 7ii7 make available to each institution of higher education participating in a program authorized under this title complete copies of all review guidelines and procedures used in program reviews1 except that internal training materials for ,department staff related to identifying instances of fraud1 misrepresentation1 or intentional noncompliance shall not be disclosed2 7iii7 permit an institution of higher education to correct or cure an administrative1 accounting1 or recordkeeping error within #ij days of the issuance of the final program review report1 if the error is not part of a pattern of error and there is no evidence of fraud or misconduct related to the error2 7iv7 without sharing personally identifiable information and 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 #aigd71 inform the relevant ,federal agencies and relevant ,state entities or agencies1 and accrediting agency or association1 whenever the ,secretary finds a violation of this title or sanctions an institution of higher education under section #dcb1 #dhi;,a1 or #dih2 and 7v7 provide to an institution of higher education #ij calendar days to review and respond to any program review report and relevant materials related to the report before any final program review report is issued4 7,c7 ,final program review determination 7i7 ,in general ,not later than #ahj calendar days after issuing a program review report under this section1 the ,secretary shall review and consider an institution of higher education's response1 and issue a final program review determination or audit determination4 ,the final determination shall include-- 7,i7 a written statement addressing the institution of higher education's response2 7,,ii7 a written statement of the basis for such determination2 and 7,,iii7 a copy of the institution's response4 7ii7 ,confidentiality ,the ,secretary shall maintain and preserve at all times the confidentiality of any program review report until a final program review determination is issued1 other than to inform the relevant ,federal agencies and relevant ,state entities or agencies1 and accrediting agency or association1 as required under this section4 7,d7 ,reports disclosed to the institution ,the ,secretary shall promptly disclose each program review report and each final program review determination to the institution of higher education under review4 7,e7 ,removal of personally identifiable information ,any personally identifiable information from the education records of students shall be removed from any program review report or final program review determination before the report is shared with any relevant ,federal agency1 ,state entity or agency1 or accrediting agency or association4 7#g7 ,follow-up reviews after violations ,the ,secretary shall conduct follow-up reviews of each institution of higher education that has been found in violation of a provision of this title not later than #a year after the date of such finding4 ,such follow-up reviews may only assess whether the institution of higher education has corrected violations found in a previous program review or final program review determination4 7c7 ,definitions ,in this section3 7#a7 ,executive compensation ,the term executive compensation1 when used with respect to an institution of higher education1 means the wages1 salary1 fees1 commissions1 fringe benefits1 deferred compensation1 retirement contributions1 options1 bonuses1 property1 and any other form of remuneration that the ,secretary determines is appropriate1 given to the #e percent of employees at the institution who are the highest compensated4 7#b7 ,federal funds ,the term ,federal funds means any ,federal funds provided1 under this ,act or any other ,federal law1 through a grant1 contract1 subsidy1 loan1 guarantee1 insurance1 or other means to a proprietary institution1 including ,federal funds disbursed or delivered to an institution or on behalf of a student or to a student to be used to attend the institution1 except that such term shall not include any monthly housing stipend provided under the ,post-#i_/aa ,educational ,assistance ,program under chapter #cc of title #ch1 ,united ,states ,code4 7#c7 ,relevant ,federal agency ,the term relevant ,federal agency means-- 7,a7 the ,department of ,education2 7,b7 the ,department of ,veterans ,affairs2 7,c7 the ,department of ,defense2 7,d7 the ,bureau of ,consumer ,financial ,protection2 7,e7 the ,federal ,trade ,commission2 or 7,f7 any other ,federal agency that provides ,federal student assistance or that the ,secretary determines appropriate4 7#d7 ,relevant ,state entity or agency ,the term relevant ,state entity or agency means-- 7,a7 an appropriate ,state licensing or authorizing agency2 7,b7 the attorney general 7or the equivalent thereof7 of the ,state2 or 7,c7 any other ,state entity or agency that the ,secretary determines appropriate4 4 #ag4 ,consumer protections for students 7a7 ,definitions ,in this section3 7#a7 ,federal financial assistance program ,the term ,federal financial assistance program means a program that provides ,federal education assistance funds1 as described in section #ajc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjc71 to any postsecondary educational institution4 7#b7 ,postsecondary educational institution ,the term postsecondary educational institution means an educational institution that awards a degree or certificate and is located in any ,state and includes-- 7,a7 an institution of higher education1 as defined in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb72 7,b7 a postsecondary educational institution1 as defined in section #bjc of the ,adult ,education and ,family ,literacy ,act 7#bi ,u4,s4,c4 #cbgb72 and 7,c7 an educational institution1 as defined under section #cdeb of title #ch1 ,united ,states ,code4 7#c7 ,state 7,a7 ,state ,the term ,state includes1 in addition to the several ,states of the ,united ,states1 the ,commonwealth of ,puerto ,rico1 the ,district of ,columbia1 ,guam1 ,american ,samoa1 the ,united ,states ,virgin ,islands1 the ,commonwealth of the ,northern ,mariana ,islands1 and the freely associated ,states4 7,b7 ,freely associated ,states ,the term freely associated ,states means the ,republic of the ,marshall ,islands1 the ,federated ,states of ,micronesia1 and the ,republic of ,palau4 7b7 ,consumer protections ,notwithstanding any other provision of law1 a postsecondary educational institution is not eligible to participate in a ,federal financial assistance program with respect to any program of postsecondary education or training1 including a degree or certificate program1 that is designed to prepare students for entry into a recognized occupation or profession that requires licensing or other established requirements as a pre-condition for entry into such occupation or profession1 unless-- 7#a7 the successful completion of the program fully qualifies a student1 in the ,metropolitan ,statistical ,area in which the student resides1 to-- 7,a7 take any examination required for entry into the recognized occupation or profession in the ,metropolitan ,statistical ,area in which the student resides1 including satisfying all ,state or professionally mandated programmatic and specialized accreditation requirements1 if any2 and 7,b7 be certified or licensed or meet any other academically related pre-conditions that are required for entry into the recognized occupation or profession in the ,metropolitan ,statistical ,area in which the student resides2 and 7#b7 the institution offering the program provides timely placement for all of the academically related pre-licensure requirements for entry into the recognized occupation or profession in the ,metropolitan ,statistical ,area in which the student resides1 such as clinical placements1 internships1 or apprenticeships4 7c7 ,effective date ,this section shall take effect on the date that is #ahj days after the date of the enactment of this ,act4