,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #dffb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #aa1 #bjai,ms4
 ,port] 7= h]self & ,mr4 ,takano7       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,education & ,labor  ,a
 ,,bill  ,to am5d ! ,high] ,education   
,act ( #aife to require t in/itutions ( 
high] education ma9ta9 c]ta9 adju/$     
cohort default rates to p>ticipate 9    
programs "u title ,,iv ( su* ,act1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,acc\ntability 9 ,/ud5t
 ,loan ,data ,act4  #b4 ,progress p]iod 
/atus ,section #ajc ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajjc7 is am5d$ by add+ at ! end !      
foll[+3  7#be7 ,progress p]iod /atus ,! 
t]m progress p]iod /atus means ! /atus (
 an in/itution ( high] education t is   
det]m9$ by ! ,secret>y to be 9 dang] (  
fail+ to meet title ,,iv eligibility    
crit]ia relat+ to /ud5t debt because !  
in/itution has an adju/$ cohort default 
rate ( n less ?an #aj p]c5t & n m ?an   

#ae p]c5t4  4  #c4 ,consum] in=mation   
,section #acb ( ! ,high] ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ajae;a7 is     
am5d$ 9 subsection 7i77#a77,t71 by /rik+
 rate1 & ins]t+ rate & adju/$ cohort    
default rate14  #d4 ,f$]al ,pell ,grants
 ,section #dja ( ! ,high] ,education    
,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a7 is 
am5d$ 9 subsection 7j7-- 7#a7 9 p>agraph
 7#a7 by ins]t+ be=e ! p]iod ! foll[+3 1
 or if su* in/itution ( high] education 
is subject to an ineligibility          
det]m9ation "u section #dce7;a77#i72 &  
7#b7 9 p>agraph 7#b7 by ins]t+ 1 f9al   
adju/$ cohort default rate1 or on-"t    
repaym5t rate be=e det]m9ation4  #e4    
,disbursem5t ( /ud5t loans ,section     
#dbh;,g ( ! ,high] ,education ,act (    
#aife 7#bj ,u4,s4,c4 #ajgh-g7;a77 is    
am5d$--  7#a7 9 subsection 7a71 by add+ 
at ! end ! foll[+3  7#e7 ,adju/$ cohort 
default rate ,beg9n+ on ! date on :i* ! 
f9al adju/$ cohort default rates are    
publi%$ by ! ,secret>y = n less ?an #c  
fiscal ye>s "u section #dce7m71 an      

in/itution ^: adju/$ cohort default rate
 7z det]m9$ "u section #dce7m77 = ea* ( 
! #c mo/ rec5t fiscal ye>s = :i* data   
are available is less ?an #e p]c5t may  
disburse any loan made1 insur$1 or      
gu>ante$ "u ?is "p 9 a s+le in/allm5t = 
any p]iod ( enrollm5t t is n m ?an #a   
seme/]1 #a trime/]1 #a qu>t]1 or #d     
mon?s4  2 &  7#b7 9 subsection 7e71 by  
ins]t+ be=e ! p]iod ! foll[+3 1 or      
beg9n+ on ! date on :i* ! f9al adju/$   
cohort default rates are publi%$ by !   
,secret>y = fiscal ye> #bjah "u section 
#dce7m71 an adju/$ cohort default rate  
7z det]m9$ "u section #dce7m77 ( less   
?an #b p]c5t4  #f4 ,cohort default rates
  7a7 ,ineligibility bas$ on high       
default rates  7#a7 ,9 g5]al ,section   
#dce7;a7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhe7;a77 is      
am5d$-- 7,a7 9 p>agraph 7#g77;,a71 by   
add+ at ! end ! foll[+3  7iii7 ,default 
managem5t plan ,! default managem5t plan
 requir$ "u clause 7i7 may n include    
plac+ /ud5ts 9 =be>ance z a means (     

r$uc+ ! cohort default rate or ! adju/$ 
cohort default rate ( ! in/itution4  2 &
  7,b7 by add+ at ! end ! foll[+3  7#i7 
,ineligibility bas$ on high adju/$      
cohort default rates  7,a7 ,9 g5]al     
,except z provid$ 9 subp>agraphs 7,b7 & 
7,d71 beg9n+ on ! date t is "o ye> aft] 
! date on :i* ! f9al adju/$ cohort      
default rates are publi%$ by ! ,secret>y
 = n less ?an #c fiscal ye>s1 9 a case 9
 :i* "o ( ! foll[+ det]m9ations is made 
) respect to an in/itution1 su*         
in/itution %all be ineligible to        
p>ticipate 9 a program "u ?is title = ! 
fiscal ye> = :i* ! det]m9ation is made &
 = ! two succe$+ fiscal ye>s3  7i7 ,!   
in/itution's adju/$ cohort default rate 
is great] ?an #bj p]c5t = ea* ( ! ?ree  
mo/ rec5t fiscal ye>s = :i* ! f9al      
adju/$ cohort default rates are publi%$4
  7ii7 ,) respect to ! six mo/ rec5t    
fiscal ye>s = :i* ! f9al adju/$ cohort  
default rates are publi%$--  7,i7 !     
in/itution's adju/$ cohort default rate 
is great] ?an #ae p]c5t = ea* su* fiscal

 ye>2 &  7,,ii7 ! ,secret>y det]m9es t1 
dur+ su* #f-ye> p]iod1 ! in/itution has 
n made adequate progress 9 meet+ /&>ds =
 /ud5t a*ievem5t e/abli%$ by ! relevant 
accr$it+ ag5cy or association pursuant  
to section #dif7;a77#e77;,a74  7iii7 ,) 
respect to ! eight mo/ rec5t fiscal ye>s
 = :i* ! f9al adju/$ cohort default     
rates are publi%$--  7,i7 ! in/itution's
 adju/$ cohort default rate is great]   
?an #aj p]c5t = ea* su* fiscal ye>2 &   
7,,ii7 ! ,secret>y det]m9es t1 dur+ su* 
#h-ye> p]iod1 ! in/itution has n made   
adequate progress 9 meet+ /&>ds = /ud5t 
a*ievem5t e/abli%$ by ! relevant        
accr$it+ ag5cy or association pursuant  
to section #dif7;a77#e77;,a74  7,b7     
,exceptions = c]ta9 categories (        
educational programs ,) respect to an   
in/itution t loses eligibility to       
p>ticipate 9 a program "u ?is title 9   
accordance ) subp>agraph 7,a77ii71 su*  
in/itution may reque/ & be grant$ an    
exception to su* loss ( eligibility = a 
category ( educational programs at su*  

in/itution by demon/rat+ to ! ,secret>y 
t ! adju/$ cohort default rate = !      
category ( educational programs is #ae  
p]c5t or less = ea* fiscal ye> ( !      
#f-ye> p]iod on :i* su* loss (          
eligibility = ! in/itution is bas$4     
7,c7 ,det]m9ation ( ! adju/$ cohort rate
 = a category ( educational programs ,9 
det]m9+ ! adju/$ cohort default rate = a
 category ( educational programs =      
purposes ( ?is p>agraph--  7i7          
subsection 7m7 %all be appli$-- 7,i7 9  
p>agraph 7#a7--  7aa7 9 subp>agraph     
7,a71 by sub/itut+ receiv$ = enrollm5t 9
 ! category ( educational programs = :i*
 su* rate is be+ det]m9$ = receiv$ =    
att5dance at ! in/itution2 &  7bb7 9    
subp>agraph 7,e77i77,,ii71 by sub/itut+1
 p]c5tage ( /ud5ts enroll$ 9 ! category 
( educational programs = :i* su* rate is
 be+ det]m9$ = p]c5tage ( /ud5ts enroll$
 at ! in/itution2 &  7,,ii7 z if !      
foll[+ 7 add$ at ! end ( p>agraph 7#b73 
7,e7 ,9 ! case ( a /ud5t :o has receiv$ 
a loan = enrollm5t 9 m ?an "o category (

 educational programs1 ! /ud5t 7& su*   
/ud5t's subsequ5t repaym5t or default7  
is attribut$ to ! la/ category (        
educational programs 9 :i* su* /ud5t 0  
enroll$4  4  7,d7 ,transition exception 
7i7 ,9 g5]al ,a cov]$ in/itution ) an   
adju/$ cohort default rate t is great]  
?an #bj p]c5t = ! fir/ fiscal ye> = :i* 
su* rates are publi%$ by ! ,secret>y may
 reque/ t any det]m9ation ( su* cov]$   
in/itution's ineligibility "u           
subp>agraph 7,a7 n be bas$ on ! adju/$  
cohort default rate ( su* cov]$         
in/itution = any or all ( ! fir/ #c     
fiscal ye>s = :i* su* rates are publi%$ 
by ! ,secret>y4  7ii7 ,requirem5t ,to be
 grant$ a reque/ "u clause 7i71 a cov]$ 
in/itution %all submit to ! ,secret>y a 
default managem5t plan z specifi$ 9     
p>agraph 7#g74  7iii7 ,def9ition ( cov]$
 in/itution ,9 ?is subp>agraph1 ! t]m   
cov]$ in/itution means-- 7,i7 a public  
in/itution ( high] education2  7,,ii7 a 
"p ,b in/itution 7z def9$ 9 section     
#cbb72 or  7,,iii7 a private1 nonpr(it  

in/itution ( high] education at :i* n   
less ?an #de p]c5t ( ! total /ud5t      
enrollm5t consi/s ( l[-income /ud5ts 7z 
su* t]m is def9$ 9 section              
#dai,n7b77#g774  7,e7 ,category (       
educational programs def9$ ,! t]m       
category ( educational programs1 :5 us$ 
) respect to an in/itution1 means "o ( !
 foll[+3 7i7 ,! educational programs at 
! in/itution lead+ to an und]graduate1  
non-degree cr$5tial4  7ii7 ,!           
educational programs at ! in/itution    
lead+ to an associate's degree4  7iii7  
,! educational programs at ! in/itution 
lead+ to a ba*elor's degree4  7iv7 ,!   
educational programs at ! in/itution    
lead+ to a graduate1 non-degree         
cr$5tial4  7v7 ,! educational program at
 ! in/itution lead+ to a graduate       
degree4  7#aj7 ,application ( adju/$    
cohort default rate ,beg9n+ on ! date on
 :i* ! f9al adju/$ cohort default rates 
are publi%$ by ! ,secret>y = n less ?an 
#c fiscal ye>s--  7,a7 p>agraph 7#a7    
%all be appli$ by sub/itut+ p>agraph    

7#i7 = p>agraph 7#b72  7,b7 p>agraph    
7#c7 %all be appli$ by sub/itut+ adju/$ 
cohort default rate1 calculat$ 9        
accordance ) subsection 7m77#a77;,d71 is
 great] ?an #bj p]c5t = any #c          
consecutive fiscal ye>s = cohort default
 rate1 calculat$ 9 accordance )         
subsection 7m71 is equal to or great]   
?an ! ?re%old p]c5tage specifi$ 9       
p>agraph 7#b77;,b77iv7 = any two        
consecutive fiscal ye>s2  7,c7 p>agraph 
7#d7 %all be appli$-- 7i7 9 subp>agraph 
7,c71 by sub/itut+ adju/$ cohort default
 rate is great] ?an #ae p]c5t = cohort  
default rate equals or exce$s #bj p]c5t2
 &  7ii7 9 ! matt] foll[+ subp>agraph   
7,c71 by sub/itut+ adju/$ cohort default
 rate to reflect ! p]c5tage ( default$  
loans 9 ! repres5tative sample t are    
requir$ to be exclud$ pursuant to       
subsection 7m77#a77;,b7 = cohort default
 rate to reflect ! p]c5tage ( default$  
loans 9 ! repres5tative sample t are    
requir$ to be exclud$ pursuant to       
subsection 7m77#a77;,b72  7,d7 p>agraph 

7#e77;,a7 %all be appli$ by sub/itut+   
p>agraph 7#i7 = p>agraph 7#b72 &  7,e7  
p>agraph 7#g7 %all be appli$--  7i7 9   
subp>agraph 7,a77i7-- 7,i7 9 ! matt]    
prec$+ subclause 7,i71 by sub/itut+     
adju/$ cohort default rate is great] ?an
 #bj p]c5t = cohort default rate is     
equal to or great] ?an ! ?re%old        
p]c5tage specifi$ 9 p>agraph            
7#b77;,b77iv72 &  7,,ii7 9 subclauses   
7,i7 & 7,,ii71 by sub/itut+ adju/$      
cohort default rate = cohort default    
rate2 &  7ii7 9 subp>agraph 7,b77i71 by 
sub/itut+ adju/$ cohort default rate is 
great] ?an #bj p]c5t = cohort default   
rate is equal to or great] ?an ! ?re%old
 p]c5tage specifi$ 9 p>agraph           
7#b77;,b77iv74  4  7#b7 ,con=m+ am5dm5ts
 ,section #dce7;a77#b7 ( ! ,high]       
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhe7;a77 is am5d$-- 7,a7 9 ! p>agraph 
head+1 by add+ at ! end ! foll[+3 ,be=e 
fiscal ye> #bjah2 &  7,b7 9 subp>agraph 
7,b77iv71 by /rik+ & any succe$+ fiscal 
ye> & ins]t+ ?r\gh fiscal ye> #bjag4    

7b7 ,adju/$ cohort default rate def9$   
,section #dce7m77#a7 ( ! ,high]         
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhe7m77#a77 is am5d$ by add+ at ! end 
! foll[+3  7,d7  7i7 ,) respect to a    
cohort default rate calculat$ = an      
in/itution "u ?is p>agraph = fiscal ye> 
#bjah & = ea* succe$+ fiscal ye>1 su*   
cohort default rate %all be adju/$ z    
foll[s3  7,i7 ,9 det]m9+ ! numb] (      
curr5t & =m] /ud5ts at an in/itution :o 
ent] repaym5t = su* fiscal ye>--  7aa7  
any su* /ud5t :o is 9 nonm&atory        
=be>ance = su* fiscal ye> = a p]iod (   
great] ?an #ah mon?s b less ?an #cf     
mon?s %all n be c\nt$ z ent]+ repaym5t =
 su* fiscal ye>2  7bb7 su* a /ud5t %all 
be c\nt$ z ent]+ repaym5t = ! fir/      
fiscal ye> = :i* ! /ud5t ceases to be 9 
a p]iod ( =be>ance & o!rwise meets !    
requirem5ts = be+ 9 repaym5t2 &  7cc7   
any su* /ud5t :o is 9 a p]iod ( =be>ance
 = ?ree or m ye>s %all be c\nt$ z 9     
default & includ$ 9 ! in/itution's total
 numb] ( /ud5ts 9 default4  7,,ii7 ,su* 

rate %all be multipli$ by ! p]c5tage (  
/ud5ts enroll$ at ! in/itution = su*    
fiscal ye> :o are borr[+ a loan "u "p ,d
 ( ?is title4  7ii7 ,! result obta9$ "u 
?is subp>agraph = an in/itution %all be 
ref]r$ to 9 ?is ,act z ! adju/$ cohort  
default rate4  4  7c7 ,publication (    
adju/$ cohort default rate ,section     
#dce7m7 ( ! ,high] ,education ,act (    
#aife 7#bj ,u4,s4,c4 #ajhe7m77 is am5d$ 
by add+ at ! end ! foll[+3  7#e7 ,beg9n+
 on ! date on :i* ! f9al adju/$ cohort  
default rates = fiscal ye> #bjah are    
made available = publication by !       
,secret>y1 p>agraph 7#d7 %all be appli$ 
by sub/itut+ adju/$ cohort default =    
cohort default ea* place x appe>s4  4   
#g4 ,adju/$ cohort default rate ,section
 #dhg7;a77#ad7 ( ! ,high] ,education    
,act ( #aife is am5d$ by add+ at ! end !
 foll[+3  7,d7 ,beg9n+ on ! date on :i* 
! f9al adju/$ cohort default rates are  
publi%$ by ! ,secret>y = fiscal ye>     
#bjah "u section #dce7m71 subp>agraph   
7,c7 %all be appli$ by sub/itut+ adju/$ 

cohort default rate 9 excess ( #e p]c5t 
= cohort default rate 9 excess ( #aj    
p]c5t ea* place x appe>s4  4  #h4       
,program review & data ,section #dih;,a 
( ! ,high] ,education ,act ( #aife 7#bj 
,u4,s4,c4 #ajii;c-#a7 is am5d$ 9        
subsection 7a77#b71 by /rik+ subp>agraph
 7,a7 & ins]t+ ! foll[+3  7,a7          
in/itutions ) an adju/$ cohort default  
rate = loans "u "p ,d 9 excess ( #ah    
p]c5t or :i* places su* in/itutions 9 ! 
highe/ #be p]c5t ( su* in/itutions2  4  
#i4 ,assi/ance to progress p]iod        
in/itutions ,"p ,h ( title ,,iv ( !     
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajii;a et seq47 is am5d$ by  
add+ at ! end ! foll[+3  #dih;,c4       
,assi/ance to progress p]iod in/itutions
  7a7 ,9 g5]al ,! ,secret>y %all provide
 grants & te*nical assi/ance to cov]$   
progress p]iod in/itutions 9 accordance 
) ?is section4  7b7 ,au?oriz$ activities
 ,grants & assi/ance provid$ "u ?is     
section %all be us$ to improve /ud5t    
a*ievem5t 7z describ$ 9 section         

#dif7;a77#e77;,a77 at cov]$ progress    
p]iod in/itutions4  7c7 ,duration       
,grants & assi/ance may be provid$ "u   
?is section = a p]iod ( n less ?an "o   
ye> & n m ?an ?ree ye>s4  7d7           
,conditions  7#a7 ,b5*m>ks  7,a7 ,9     
g5]al ,to cont9ue to receive support "u 
?is section aft] ! fir/ ye> 9 :i* su*   
support is provid$1 an in/itution mu/ %[
 progress1 z det]m9$ by ! ,secret>y1    
t[>d meet+ ! /&>ds = /ud5t a*ievem5t    
e/abli%$ by ! relevant accr$it+ ag5cy or
 association pursuant to section        
#dif7;a77#e77;,a74  7,b7 ,consid]ations 
,9 det]m9+ ! progress ( an in/itution "u
 subp>agraph 7,a71 ! ,secret>y may take 
into consid]ation ext5uat+ circum/ances 
t may h contribut$ to ! poor p]=mance ( 
! in/itution 9 ! fir/ ye> ( ! review    
p]iod4  7#b7 ,deadl9e = compliance ,an  
in/itution t does n a*ieve an adju/$    
cohort default rate ( less ?an #aj p]c5t
 aft] receiv+ support "u ?is section =  
?ree consecutive ye>s %all be ineligible
 to receive fur!r support "u ?is        

section4  7#c7 ,prohibition ,an         
in/itution %all be ineligible to receive
 fur!r support "u ?is section if1 :ile !
 in/itution 0 receiv+ su* support1 !    
total enrollm5t ( l[-income /ud5ts 7z   
su* t]m is def9$ 9 section              
#dai,n7b77#g77 at ! in/itution decreas$ 
by #aj p]c5t or m4  7e7 ,cov]$ progress 
p]iod in/itution ,9 ?is section1 ! t]m  
cov]$ progress p]iod in/itution means-- 
7#a7 a public in/itution ( high]        
education t is det]m9$ to be 9 progress 
p]iod /atus2  7#b7 a "p ,b in/itution 7z
 def9$ 9 section #cbb7 t is det]m9$ to  
be 9 progress p]iod /atus2 or  7#c7 a   
private1 nonpr(it in/itution ( high]    
education-- 7,a7 t is det]m9$ to be 9   
progress p]iod /atus2 &  7,b7 at :i* n  
less ?an #de p]c5t ( ! total /ud5t      
enrollm5t consi/s ( l[-income /ud5ts 7z 
su* t]m is def9$ 9 section              
#dai,n7b77#g774  7f7 ,fund+  7#a7 ,9    
g5]al ,!re are appropriat$ su* funds z !
 ,secret>y1 us+ ! =mula describ$ 9      
p>agraph 7#b71 det]m9es necess>y to meet

 ! ne$s ( all eligible in/itutions "u   
?is subsection4  7#b7 ,=mula ,n lat] ?an
 #a ye> aft] ! date ( ! enactm5t ( ?is  
section1 ! ,secret>y %all e/abli% ?r\gh 
negotiat$ rulemak+ a =mula to det]m9e   
!--  7,a7 proportional am\nt (          
in/itutional ne$ "u ?is section2 &  7,b7
 total am\nt ( in/itutional ne$ "u ?is  
section4  7#c7 ,special rule ,su* =mula 
mu/ at m9imum take into consid]ation !  
sev]ity ( ! problem1 size ( !           
in/itution1 in/itutional res\rces1      
hi/orical und]fund+1 & ! numb] (        
l[-income /ud5ts 7z su* t]m is def9$ 9  
section #dai,n7b77#g77 be+ s]v$4  4