,i #aafth ,,congress #ast ,session ,h4 ,r4 #dffb ,,in ,,the ,,house ,,of ,,representatives ,october #aa1 #bjai,ms4 ,porter 7for herself and ,mr4 ,takano7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to amend the ,higher ,education ,act of #aife to require that institutions of higher education maintain certain adjusted cohort default rates to participate in programs under title ,,iv of such ,act1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,accountability in ,student ,loan ,data ,act4 #b4 ,progress period status ,section #ajc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjc7 is amended by adding at the end the following3 7#be7 ,progress period status ,the term progress period status means the status of an institution of higher education that is determined by the ,secretary to be in danger of failing to meet title ,,iv eligibility criteria relating to student debt because the institution has an adjusted cohort default rate of not less than #aj percent and not more than #ae percent4 4 #c4 ,consumer information ,section #acb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajae;a7 is amended in subsection 7i77#a77,t71 by striking rate1 and inserting rate and adjusted cohort default rate14 #d4 ,federal ,pell ,grants ,section #dja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a7 is amended in subsection 7j7-- 7#a7 in paragraph 7#a7 by inserting before the period the following3 1 or if such institution of higher education is subject to an ineligibility determination under section #dce7;a77#i72 and 7#b7 in paragraph 7#b7 by inserting 1 final adjusted cohort default rate1 or on-time repayment rate before determination4 #e4 ,disbursement of student loans ,section #dbh;,g of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgh-g7;a77 is amended-- 7#a7 in subsection 7a71 by adding at the end the following3 7#e7 ,adjusted cohort default rate ,beginning on the date on which the final adjusted cohort default rates are published by the ,secretary for not less than #c fiscal years under section #dce7m71 an institution whose adjusted cohort default rate 7as determined under section #dce7m77 for each of the #c most recent fiscal years for which data are available is less than #e percent may disburse any loan made1 insured1 or guaranteed under this part in a single installment for any period of enrollment that is not more than #a semester1 #a trimester1 #a quarter1 or #d months4 2 and 7#b7 in subsection 7e71 by inserting before the period the following3 1 or beginning on the date on which the final adjusted cohort default rates are published by the ,secretary for fiscal year #bjah under section #dce7m71 an adjusted cohort default rate 7as determined under section #dce7m77 of less than #b percent4 #f4 ,cohort default rates 7a7 ,ineligibility based on high default rates 7#a7 ,in general ,section #dce7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhe7;a77 is amended-- 7,a7 in paragraph 7#g77;,a71 by adding at the end the following3 7iii7 ,default management plan ,the default management plan required under clause 7i7 may not include placing students in forbearance as a means of reducing the cohort default rate or the adjusted cohort default rate of the institution4 2 and 7,b7 by adding at the end the following3 7#i7 ,ineligibility based on high adjusted cohort default rates 7,a7 ,in general ,except as provided in subparagraphs 7,b7 and 7,d71 beginning on the date that is one year after the date on which the final adjusted cohort default rates are published by the ,secretary for not less than #c fiscal years1 in a case in which one of the following determinations is made with respect to an institution1 such institution shall be ineligible to participate in a program under this title for the fiscal year for which the determination is made and for the two succeeding fiscal years3 7i7 ,the institution's adjusted cohort default rate is greater than #bj percent for each of the three most recent fiscal years for which the final adjusted cohort default rates are published4 7ii7 ,with respect to the six most recent fiscal years for which the final adjusted cohort default rates are published-- 7,i7 the institution's adjusted cohort default rate is greater than #ae percent for each such fiscal year2 and 7,,ii7 the ,secretary determines that1 during such #f-year period1 the institution has not made adequate progress in meeting standards for student achievement established by the relevant accrediting agency or association pursuant to section #dif7;a77#e77;,a74 7iii7 ,with respect to the eight most recent fiscal years for which the final adjusted cohort default rates are published-- 7,i7 the institution's adjusted cohort default rate is greater than #aj percent for each such fiscal year2 and 7,,ii7 the ,secretary determines that1 during such #h-year period1 the institution has not made adequate progress in meeting standards for student achievement established by the relevant accrediting agency or association pursuant to section #dif7;a77#e77;,a74 7,b7 ,exceptions for certain categories of educational programs ,with respect to an institution that loses eligibility to participate in a program under this title in accordance with subparagraph 7,a77ii71 such institution may request and be granted an exception to such loss of eligibility for a category of educational programs at such institution by demonstrating to the ,secretary that the adjusted cohort default rate for the category of educational programs is #ae percent or less for each fiscal year of the #f-year period on which such loss of eligibility for the institution is based4 7,c7 ,determination of the adjusted cohort rate for a category of educational programs ,in determining the adjusted cohort default rate for a category of educational programs for purposes of this paragraph-- 7i7 subsection 7m7 shall be applied-- 7,i7 in paragraph 7#a7-- 7aa7 in subparagraph 7,a71 by substituting received for enrollment in the category of educational programs for which such rate is being determined for received for attendance at the institution2 and 7bb7 in subparagraph 7,e77i77,,ii71 by substituting1 percentage of students enrolled in the category of educational programs for which such rate is being determined for percentage of students enrolled at the institution2 and 7,,ii7 as if the following were added at the end of paragraph 7#b73 7,e7 ,in the case of a student who has received a loan for enrollment in more than one category of educational programs1 the student 7and such student's subsequent repayment or default7 is attributed to the last category of educational programs in which such student was enrolled4 4 7,d7 ,transition exception 7i7 ,in general ,a covered institution with an adjusted cohort default rate that is greater than #bj percent for the first fiscal year for which such rates are published by the ,secretary may request that any determination of such covered institution's ineligibility under subparagraph 7,a7 not be based on the adjusted cohort default rate of such covered institution for any or all of the first #c fiscal years for which such rates are published by the ,secretary4 7ii7 ,requirement ,to be granted a request under clause 7i71 a covered institution shall submit to the ,secretary a default management plan as specified in paragraph 7#g74 7iii7 ,definition of covered institution ,in this subparagraph1 the term covered institution means-- 7,i7 a public institution of higher education2 7,,ii7 a part ,b institution 7as defined in section #cbb72 or 7,,iii7 a private1 nonprofit institution of higher education at which not less than #de percent of the total student enrollment consists of low-income students 7as such term is defined in section #dai,n7b77#g774 7,e7 ,category of educational programs defined ,the term category of educational programs1 when used with respect to an institution1 means one of the following3 7i7 ,the educational programs at the institution leading to an undergraduate1 non-degree credential4 7ii7 ,the educational programs at the institution leading to an associate's degree4 7iii7 ,the educational programs at the institution leading to a bachelor's degree4 7iv7 ,the educational programs at the institution leading to a graduate1 non-degree credential4 7v7 ,the educational program at the institution leading to a graduate degree4 7#aj7 ,application of adjusted cohort default rate ,beginning on the date on which the final adjusted cohort default rates are published by the ,secretary for not less than #c fiscal years-- 7,a7 paragraph 7#a7 shall be applied by substituting paragraph 7#i7 for paragraph 7#b72 7,b7 paragraph 7#c7 shall be applied by substituting adjusted cohort default rate1 calculated in accordance with subsection 7m77#a77;,d71 is greater than #bj percent for any #c consecutive fiscal years for cohort default rate1 calculated in accordance with subsection 7m71 is equal to or greater than the threshold percentage specified in paragraph 7#b77;,b77iv7 for any two consecutive fiscal years2 7,c7 paragraph 7#d7 shall be applied-- 7i7 in subparagraph 7,c71 by substituting adjusted cohort default rate is greater than #ae percent for cohort default rate equals or exceeds #bj percent2 and 7ii7 in the matter following subparagraph 7,c71 by substituting adjusted cohort default rate to reflect the percentage of defaulted loans in the representative sample that are required to be excluded pursuant to subsection 7m77#a77;,b7 for cohort default rate to reflect the percentage of defaulted loans in the representative sample that are required to be excluded pursuant to subsection 7m77#a77;,b72 7,d7 paragraph 7#e77;,a7 shall be applied by substituting paragraph 7#i7 for paragraph 7#b72 and 7,e7 paragraph 7#g7 shall be applied-- 7i7 in subparagraph 7,a77i7-- 7,i7 in the matter preceding subclause 7,i71 by substituting adjusted cohort default rate is greater than #bj percent for cohort default rate is equal to or greater than the threshold percentage specified in paragraph 7#b77;,b77iv72 and 7,,ii7 in subclauses 7,i7 and 7,,ii71 by substituting adjusted cohort default rate for cohort default rate2 and 7ii7 in subparagraph 7,b77i71 by substituting adjusted cohort default rate is greater than #bj percent for cohort default rate is equal to or greater than the threshold percentage specified in paragraph 7#b77;,b77iv74 4 7#b7 ,conforming amendments ,section #dce7;a77#b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhe7;a77 is amended-- 7,a7 in the paragraph heading1 by adding at the end the following3 ,before fiscal year #bjah2 and 7,b7 in subparagraph 7,b77iv71 by striking and any succeeding fiscal year and inserting through fiscal year #bjag4 7b7 ,adjusted cohort default rate defined ,section #dce7m77#a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhe7m77#a77 is amended by adding at the end the following3 7,d7 7i7 ,with respect to a cohort default rate calculated for an institution under this paragraph for fiscal year #bjah and for each succeeding fiscal year1 such cohort default rate shall be adjusted as follows3 7,i7 ,in determining the number of current and former students at an institution who enter repayment for such fiscal year-- 7aa7 any such student who is in nonmandatory forbearance for such fiscal year for a period of greater than #ah months but less than #cf months shall not be counted as entering repayment for such fiscal year2 7bb7 such a student shall be counted as entering repayment for the first fiscal year for which the student ceases to be in a period of forbearance and otherwise meets the requirements for being in repayment2 and 7cc7 any such student who is in a period of forbearance for three or more years shall be counted as in default and included in the institution's total number of students in default4 7,,ii7 ,such rate shall be multiplied by the percentage of students enrolled at the institution for such fiscal year who are borrowing a loan under part ,d of this title4 7ii7 ,the result obtained under this subparagraph for an institution shall be referred to in this ,act as the adjusted cohort default rate4 4 7c7 ,publication of adjusted cohort default rate ,section #dce7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhe7m77 is amended by adding at the end the following3 7#e7 ,beginning on the date on which the final adjusted cohort default rates for fiscal year #bjah are made available for publication by the ,secretary1 paragraph 7#d7 shall be applied by substituting adjusted cohort default for cohort default each place it appears4 4 #g4 ,adjusted cohort default rate ,section #dhg7;a77#ad7 of the ,higher ,education ,act of #aife is amended by adding at the end the following3 7,d7 ,beginning on the date on which the final adjusted cohort default rates are published by the ,secretary for fiscal year #bjah under section #dce7m71 subparagraph 7,c7 shall be applied by substituting adjusted cohort default rate in excess of #e percent for cohort default rate in excess of #aj percent each place it appears4 4 #h4 ,program review and data ,section #dih;,a of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;c-#a7 is amended in subsection 7a77#b71 by striking subparagraph 7,a7 and inserting the following3 7,a7 institutions with an adjusted cohort default rate for loans under part ,d in excess of #ah percent or which places such institutions in the highest #be percent of such institutions2 4 #i4 ,assistance to progress period institutions ,part ,h of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;a et seq47 is amended by adding at the end the following3 #dih;,c4 ,assistance to progress period institutions 7a7 ,in general ,the ,secretary shall provide grants and technical assistance to covered progress period institutions in accordance with this section4 7b7 ,authorized activities ,grants and assistance provided under this section shall be used to improve student achievement 7as described in section #dif7;a77#e77;,a77 at covered progress period institutions4 7c7 ,duration ,grants and assistance may be provided under this section for a period of not less than one year and not more than three years4 7d7 ,conditions 7#a7 ,benchmarks 7,a7 ,in general ,to continue to receive support under this section after the first year in which such support is provided1 an institution must show progress1 as determined by the ,secretary1 toward meeting the standards for student achievement established by the relevant accrediting agency or association pursuant to section #dif7;a77#e77;,a74 7,b7 ,considerations ,in determining the progress of an institution under subparagraph 7,a71 the ,secretary may take into consideration extenuating circumstances that may have contributed to the poor performance of the institution in the first year of the review period4 7#b7 ,deadline for compliance ,an institution that does not achieve an adjusted cohort default rate of less than #aj percent after receiving support under this section for three consecutive years shall be ineligible to receive further support under this section4 7#c7 ,prohibition ,an institution shall be ineligible to receive further support under this section if1 while the institution was receiving such support1 the total enrollment of low-income students 7as such term is defined in section #dai,n7b77#g77 at the institution decreased by #aj percent or more4 7e7 ,covered progress period institution ,in this section1 the term covered progress period institution means-- 7#a7 a public institution of higher education that is determined to be in progress period status2 7#b7 a part ,b institution 7as defined in section #cbb7 that is determined to be in progress period status2 or 7#c7 a private1 nonprofit institution of higher education-- 7,a7 that is determined to be in progress period status2 and 7,b7 at which not less than #de percent of the total student enrollment consists of low-income students 7as such term is defined in section #dai,n7b77#g774 7f7 ,funding 7#a7 ,in general ,there are appropriated such funds as the ,secretary1 using the formula described in paragraph 7#b71 determines necessary to meet the needs of all eligible institutions under this subsection4 7#b7 ,formula ,not later than #a year after the date of the enactment of this section1 the ,secretary shall establish through negotiated rulemaking a formula to determine the-- 7,a7 proportional amount of institutional need under this section2 and 7,b7 total amount of institutional need under this section4 7#c7 ,special rule ,such formula must at minimum take into consideration the severity of the problem1 size of the institution1 institutional resources1 historical underfunding1 and the number of low-income students 7as such term is defined in section #dai,n7b77#g77 being served4 4