,,ii #aafth ,,congress #ast ,session ,s4 #ahee ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ac1 #bjai,mr4 ,coons 7for himself and ,ms4 ,rosen7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,higher ,education ,act of #aife to improve college access and college completion for all students4 #a4 ,short title ,this ,act may be cited as the ,access1 ,success1 and ,persistence ,in ,reshaping ,education ,act of #bjai or the ,,aspire ,act4 #b4 ,improving college access and completion for all students 7a7 ,in general ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,improving college access and completion for all students 7a7 ,definitions ,except as otherwise provided in this section1 in this section3 7#a7 ,average student-related expenditure 7,a7 ,in general ,the term average student-related expenditure means1 with respect to the most recent fiscal year ending before the ,october of an academic year1 the total amount of an institution's instructional expenditures1 student services expenditures1 and the proportion of academic support expenditures that goes towards instruction1 divided by the number of full-time equivalent students enrolled in the institution for the academic year4 7,b7 ,instructional expenditures ,the term instructional expenditures-- 7i7 includes-- 7,i7 expenditures for the colleges1 schools1 departments1 and other instructional divisions of the institution and expenses for departmental research and public service that are not separately budgeted2 7,,ii7 general academic instruction1 occupational and vocational instruction1 community education1 preparatory and adult basic education1 and remedial and tutorial instruction conducted by the teaching faculty for the institution's students2 and 7,,iii7 expenses for both credit and non-credit activities2 7ii7 may include information technology expenses related to instructional activities if the institution separately budgets and expenses information technology resources2 and 7iii7 does not include expenses for academic administration where the primary function is administration4 7,c7 ,student services expenditures ,the term student services expenditures-- 7i7 includes expenses for admissions1 registrar activities1 and activities whose primary purpose is to contribute to the emotional and physical well-being of students and to their intellectual1 cultural1 and social development outside the context of the formal instructional program2 and 7ii7 may include information technology expenses related to student service activities if the institution separately budgets and expenses information technology resources1 otherwise these expenses are included in institutional support4 7,d7 ,academic support expenditures ,the term academic support expenditures includes-- 7i7 expenses of activities and services that support the institution's primary missions of instruction1 research1 and public service1 including-- 7,i7 the retention1 preservation1 and display of educational materials2 7,,ii7 organized activities that provide support services to the academic functions of the institution2 7,,iii7 media such as audiovisual services2 7,,iv7 academic administration2 and 7,v7 formally organized and separately budgeted academic personnel development and course and curriculum development expenses2 and 7ii7 information technology expenses related to academic support activities or1 if an institution does not separately budget and expense information technology resources1 the costs associated with the three primary programs shall be applied to this function and the remainder to institutional support4 7,e7 ,full-time equivalent students enrolled ,the term full-time equivalent students enrolled means the number of full-time students enrolled1 plus-- 7i7 in the case of an institution of higher education that is a public1 #d-year institution-- 7,i7 the number of part-time undergraduate students enrolled multiplied by #j4djcedc2 and 7,,ii7 the number of part-time graduate students enrolled multiplied by #j4cfagjb2 7ii7 in the case of an institution of higher education that is a private1 nonprofit or for profit1 #d-year institution-- 7,i7 the number of part-time undergraduate students enrolled multiplied by #j4cibheg2 and 7,,ii7 the number of part-time graduate students enrolled multiplied by #j4chbjei2 7iii7 in the case of an institution of higher education that is a public1 #b-year institution1 the number of part-time undergraduate students enrolled multiplied by #j4ccegcg2 and 7iv7 in the case of an institution of higher education that is not described in clause 7i71 7ii71 or 7iii71 the number of part-time undergraduate students enrolled multiplied by #j4cigjeh4 7#b7 ,institution of higher education ,the term institution of higher education means an institution of higher education 7as defined in section #aja7;a77 or a proprietary institution of higher education 7as defined in section #ajb7;b77-- 7,a7 that predominately awards more bachelor's degrees than associate's degrees and certificates2 and 7,b7 that enrolls not less than #cj first-time1 full-time1 degree- or certificate-seeking undergraduate students4 7#c7 ,low-income or working class student ,the term low-income or working class student means a student who is eligible to receive a ,federal ,pell ,grant4 7#d7 ,moderate-income student ,the term moderate-income student means a student who is eligible to receive a subsidized ,federal ,direct ,stafford ,loan but not eligible to receive a ,federal ,pell ,grant4 7#e7 ,remedial course ,the term remedial course means a course of study that is determined by the institution which offers such course to be necessary to help a student be prepared for the pursuit of a first undergraduate bachelor's degree but does not count for credit toward the degree4 7#f7 ,underrepresented minority ,the term underrepresented minority means ,alaskan ,native1 ,black 7not of ,hispanic origin71 ,hispanic 7including persons of ,mexican1 ,puerto ,rican1 ,cuban1 and ,central or ,south ,american origin71 ,native ,american1 or ,pacific ,islander 7including ,native ,hawaiian7 minority group4 7b7 ,improving college access 7#a7 ,in general 7,a7 ,required participation ,in order for an institution of higher education to participate in any student financial assistance program under this title1 the institution shall participate in the improving college access program under this subsection4 7,b7 ,no condition on eligibility for participation for ranking ,eligibility to participate in any student financial assistance program under this title shall not be conditioned on an institution's position on the ranking completed under this subsection4 7#b7 ,calculation of percentages of federal pell grant recipients 7,a7 ,in general ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall determine1 for each institution of higher education1 the percentage of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for the academic year who received a ,federal ,pell ,grant for such academic year4 7,b7 ,ranking 7i7 ,in general ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall rank the institutions according to the percentages determined under subparagraph 7,a74 7ii7 ,trigger mark ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall determine1 based on the rankings under this subparagraph1 the percentage1 determined under subparagraph 7,a71 at which and above which marks the top #ie percent of those institutions ranked4 7,c7 ,safe harbor reached 7i7 ,safe harbor mark ,for academic year #bjbj-bjba1 the ,secretary shall determine1 based on the rankings under subparagraph 7,b77i7 for such academic year1 the percentage1 determined under subparagraph 7,a71 at which and above which marks the top #ij percent of those institutions ranked4 7ii7 ,comparison of trigger mark to safe harbor mark ,if the trigger mark determined under subparagraph 7,b77ii7 for an academic year is at or above the safe harbor mark determined under clause 7i71 no institution shall be subject to the provisions of paragraph 7#c7 for such academic year4 7#c7 ,consequences of low ranking 7,a7 ,notification 7i7 ,in general ,subject to paragraph 7#b77;,c77ii71 for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall notify each institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7-- 7,i7 that the institution is in such bottom #e percent of those institutions ranked2 7,,ii7 of the trigger mark described in paragraph 7#b77;,b77ii7 that such institution must meet or rise above2 and 7,,iii7 that the institution has #ij days to appeal to the ,secretary to be removed from the bottom #e percent of those institutions ranked4 7ii7 ,appeal ,an institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 for an academic year may appeal to the ,secretary1 within #ij days of the notification under clause 7i71 to be removed from such bottom #e percent ranking if-- 7,i7 the ,secretary's calculation of its ranking is not accurate1 and that recalculation of such ranking would raise the ranking of the institution above the bottom #e percent of those institutions ranked2 or 7,,ii7 the institution's percentage of all bachelor's degree-seeking students enrolled at the institution who received a ,federal ,pell ,grant for the academic year is sufficiently high1 as determined by the ,secretary4 7iii7 ,automatic removal ,an institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 for an academic year but whose average percentage for the academic year and the #b preceding academic years of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for the academic year and the #b preceding academic years who received a ,federal ,pell ,grant for the academic year and the #b preceding academic years is at or above the trigger mark described in paragraph 7#b77;,b77ii7 for the academic year1 shall be automatically removed from such bottom #e percent ranking4 7,b7 ,plan ,an institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 for an academic year and not removed under subparagraph 7,a7 shall develop a plan1 not later than #a year after the date of the notification under subparagraph 7,a77i7 and in consultation with the ,secretary1 to meet or rise above the trigger mark described in paragraph 7#b77;,b77ii7 applicable for the academic year for which the institution is in the bottom #e percent of those institutions ranked and not removed4 7,c7 ,calculation of average ,for each institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 for an academic year and not removed under subparagraph 7,a71 the ,secretary shall-- 7i7 grant the institution a hold harmless year for the academic year succeeding the academic year for which the institution receives notification under subparagraph 7,a77i72 and 7ii7 determine the average percentage over the #c succeeding academic years following the hold harmless academic year described in clause 7i7 of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for each of such #c succeeding academic years who received a ,federal ,pell ,grant for each of such #c succeeding academic years4 7,d7 ,failure to improve 7i7 ,in general ,except as provided in clause 7ii71 if an institution of higher education has an average percentage determined under subparagraph 7,c77ii7 that is less than the trigger mark described in paragraph 7#b77;,b77ii7 for the academic year for which the institution is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under subparagraph 7,a7 that triggered such determination1 the ,secretary shall impose on such institution a penalty described in subparagraph 7,e74 7ii7 ,delay of penalty 7,i7 ,in general ,the ,secretary may delay imposing a penalty described in subparagraph 7,e7 with respect to an institution that has an average percentage determined under subparagraph 7,c77ii7 that is less than the trigger mark described in paragraph 7#b77;,b77ii7 for the academic year for which the institution is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under subparagraph 7,a7 that triggered such determination1 but whose percentage determined for the most recent academic year is at or above such trigger mark4 7,,ii7 ,period of delay ,the ,secretary may delay imposing a penalty under subclause 7,i7 for a period of not more than #b years4 7,,iii7 ,new #c-year average ,with respect to an institution for which the ,secretary delays imposing a penalty under this clause for a period of not more than #b years1 the ,secretary1 at the end of such delay period1 shall determine the average percentage over the #c preceding years of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for each of such #c preceding academic years and who received a ,federal ,pell ,grant for each of such #c preceding academic years4 ,if the institution has an average percentage that is less than the trigger mark described in paragraph 7#b77;,b77ii7 for the academic year for which the institution is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under subparagraph 7,a7 that triggered such determination1 the ,secretary shall impose on such institution a penalty described in subparagraph 7,e74 7,e7 ,penalties 7i7 ,in general ,the ,secretary shall impose a penalty under this paragraph in an amount determined under this subparagraph4 7ii7 ,amount of penalty 7,i7 ,in general ,the penalty to be imposed under this subparagraph with respect to an institution shall be a fee-per-student penalty1 in which the number of additional students determined with respect to such institution under subclause 7,,ii7 for an academic year is multiplied by the institution's average student-related expenditure for the academic year4 7,,ii7 ,number of additional students to be determined ,with respect to an institution of higher education that is subject to the penalty under this subparagraph1 the ,secretary shall determine the total number of additional students the institution would need to enroll over #c years as ,federal ,pell ,grant recipients to meet the trigger mark described in paragraph 7#b77;,b77ii74 ,such number shall be calculated by determining the percentage equal to subtracting the average percentage determined under subparagraph 7,c77ii7 from the trigger mark described in paragraph 7#b77;,b77ii7 for the academic year for which the institution is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under subparagraph 7,a7 that triggered such determination1 and multiplying such determined percentage by the number of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for an academic year over the #c preceding academic years4 7iii7 ,collection of penalty fees ,the ,secretary shall-- 7,i7 collect penalty fees imposed under this paragraph not later than #a year after such penalty is imposed2 and 7,,ii7 use the fees collected under subclause 7,i7 to fund the completion improvement program under subsection 7d7 and the completion bonus program under subsection 7e74 7iv7 ,prohibition on use of institutional need-based grant aid to pay fees ,an institution of higher education that is subject to a penalty under this paragraph may not1 in order to pay such penalty fee-- 7,i7 reduce the amount of institutional need-based grant aid awarded to students to attend the institution2 or 7,,ii7 increase tuition or fees4 7,f7 ,appeals 7i7 ,in general ,an institution of higher education that is subject to a penalty under this paragraph may appeal the decision to impose such penalty or the amount of the penalty to the ,secretary4 7ii7 ,content of appeal ,the appeals process shall permit the institution to demonstrate1 to the satisfaction of the ,secretary-- 7,i7 that there was a miscalculation of the penalty amount2 or 7,,ii7 that there is some unforeseen and extreme circumstance that should warrant a waiver from such penalty or a reduction in the amount of such penalty4 7c7 ,improving completion 7#a7 ,in general 7,a7 ,in general ,in order for an institution of higher education to participate in any student financial assistance program under this title1 the institution shall participate in the improving college completion program under this subsection4 7,b7 ,election by public or other nonprofit institutions ,an institution of higher education that is a public or other nonprofit institution of higher education may elect for the ,secretary not to impose on such institution a penalty described in paragraph 7#c77;,e71 and the ,secretary shall be bound by such election4 ,an institution that makes such election shall be deemed to have participated in the improving college completion program for the purposes of satisfying the requirement of paragraph 7,a7 and shall not be eligible to receive a grant under the completion improvement program under subsection 7d7 or the completion bonus program under subsection 7e74 7,c7 ,definition of institution of higher education ,in this subsection1 the term institution of higher education means an institution of higher education 7as defined in section #aja7;a77 or a proprietary institution of higher education 7as defined in section #ajb7;b77-- 7i7 that predominately awards more bachelor's degrees than associate's degrees and certificates2 and 7ii7 that enrolls not less than #cj first-time1 full-time bachelor's degree- or equivalent-degree-seeking undergraduate students4 7,d7 ,no condition on eligibility for participation for ranking ,eligibility to participate in any student financial assistance program under this title shall not be conditioned on an institution's position on the ranking completed under this subsection4 7#b7 ,calculation of percentages of completion 7,a7 ,in general ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall determine1 for each institution of higher education that participates in any program under this title1 the percentage of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years4 7,b7 ,ranking 7i7 ,in general ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall rank the institutions according to the percentages determined under subparagraph 7,a74 7ii7 ,trigger mark ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall determine1 based on the rankings under clause 7i71 the percentage1 determined under subparagraph 7,a71 at which and above which marks the top #ie percent of the institutions ranked4 7iii7 ,rankings for peer groups of institutions 7,i7 ,in general ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall rank the institutions according to the percentages determined under subparagraph 7,a7 in each peer group of institutions described in subclause 7,,ii74 7,,ii7 ,peer groups ,for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall establish peer groups of institutions4 ,each peer group shall include approximately #aj to #ae1 but not less than #c1 institutions that are included in such group based on similar institutional characteristics4 ,such characteristics shall include the following3 7aa7 ,the percentage of first-time1 full-time students enrolled at the institution who receive a ,federal ,pell ,grant4 7bb7 ,the average ,,sat or ,,act score of first-time1 full-time students enrolled at the institution4 7cc7 ,the average high school ,,gpa of first-time1 full-time students enrolled at the institution4 7dd7 ,the institution's average student-related expenditure4 7ee7 ,other characteristics that the ,secretary determines are appropriate4 7,,iii7 ,peer group adjustment ,to provide for fair comparisons among institutions serving different student populations and institutional resources1 an institution that is in the bottom #e percent of the institutions ranked under clause 7i7 but in the top two-thirds of institutions ranked in the institution's peer group1 as determined under subclause 7,,ii71 shall be removed from the bottom #e percent of the institutions ranked under clause 7i74 ,the ,secretary shall not impose on such an institution a penalty described in paragraph 7#c77;,e74 7,c7 ,safe harbor reached 7i7 ,safe harbor mark ,for academic year #bjbj-bjba1 the ,secretary shall determine1 based on the rankings under subparagraph 7,b77i7 for such academic year1 the percentage1 determined under subparagraph 7,a71 at which and above which marks the top #ij percent of those institutions ranked4 7ii7 ,comparison of trigger mark to safe harbor mark ,if the trigger mark determined under subparagraph 7,b77ii7 for an academic year is at or above the safe harbor mark determined under clause 7i71 no institution shall be subject to the provisions of paragraph 7#c7 for such academic year4 7#c7 ,consequences of low ranking 7,a7 ,in general 7i7 ,in general ,subject to paragraph 7#b77;,c77ii71 for academic year #bjbj-bjba and for each succeeding academic year1 the ,secretary shall notify each institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b77i7 7and not removed under paragraph 7#b77;,b77iii77,,iii77-- 7,i7 that the institution is in such bottom #e percent of those institutions ranked for the academic year2 7,,ii7 of the applicable trigger mark described in paragraph 7#b77;,b77ii7 that such institution must meet or rise above2 and 7,,iii7 that the institution has #ij days to appeal to the ,secretary to be removed from the bottom #e percent of those institutions ranked4 7ii7 ,appeal ,an institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b77i7 7and not removed under paragraph 7#b77;,b77iii77,,iii77 for an academic year may appeal to the ,secretary1 within #ij days of the notification under clause 7i71 to be removed from such bottom #e percent ranking if the ,secretary's calculation of its ranking is not accurate1 and that recalculation of such ranking would raise the ranking of the institution above the bottom #e percent of those institutions ranked4 7iii7 ,automatic removal ,an institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b77i7 7and not removed under paragraph 7#b77;,b77iii77,,iii77 for an academic year but whose average percentage for the academic year and the #b preceding academic years of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years is at or above the trigger mark described in paragraph 7#b77;,b77ii7 for the academic year1 shall be automatically removed from such bottom #e percent ranking4 7,b7 ,plan ,for academic year #bjbj-bjba and for each fifth succeeding academic year1 an institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under paragraph 7#b77;,b7 or subparagraph 7,a7 shall develop a plan1 not later than #a year after the date of the notification under subparagraph 7,a77i7 and in consultation with the ,secretary1 to meet or rise above the trigger mark described in paragraph 7#b77;,b77ii71 applicable for the academic year for which this institution is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under paragraph 7#b77;,b7 or subparagraph 7,a7 that triggered such determination4 7,c7 ,calculation of average 7i7 ,in general ,for academic year #bjbj-bjba and for each fifth succeeding academic year1 for each institution of higher education that is in the bottom #e percent of those institutions ranked under paragraph 7#b77;,b7 and not removed under paragraph 7#b77;,b7 or subparagraph 7,a7 for an academic year1 the ,secretary shall-- 7,i7 grant the institution #b hold harmless years for the academic years succeeding the academic year for which the institution receives notification under subparagraph 7,a77i72 and 7,,ii7 determine the average percentage over the #c succeeding academic years 7as determined under clause 7ii77 following the hold harmless academic years described in clause 7i7 of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years4 7ii7 ,under-resourced years ,in determining the #c succeeding academic years under clause 7i77,,ii71 the ,secretary shall skip any academic year that succeeds an academic year for which less than #be1jjj1jjj is collected under subsection 7b77#c77;,e74 7,d7 ,failure to improve 7i7 ,in general ,except as provided in clause 7ii7 or paragraph 7#a77;,b71 if an institution of higher education has an average percentage determined under subparagraph 7,c77i77,,ii7 that is less than the applicable trigger mark described in paragraph 7#b77;,b77ii71 the ,secretary shall impose on such institution a penalty described in subparagraph 7,e74 7ii7 ,delay of penalty 7,i7 ,in general ,the ,secretary may delay imposing a penalty described in subparagraph 7,e7 with respect to an institution that has an average percentage determined under subparagraph 7,c77i77,,ii7 that is less than the applicable trigger mark described in paragraph 7#b77;,b77ii71 but whose percentage determined for the most recent academic year is at or above such trigger mark4 7,,ii7 ,period of delay ,the ,secretary may delay imposing a penalty under subclause 7,i7 for a period of not more than #b years4 7,,iii7 ,new average ,with respect to an institution for which the ,secretary delays imposing a penalty under this clause for a period of not more than #b years1 the ,secretary1 at the end of such delay period1 shall determine the average percentage over the #c preceding years of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years4 ,if the institution has an average percentage that is less than the trigger mark described in paragraph 7#b77;,b77ii71 the ,secretary shall impose on such institution a penalty described in subparagraph 7,e74 7,e7 ,penalties 7i7 ,first penalty year 7,i7 ,in general ,beginning with the fifth academic year after which penalty fees are collected under subsection 7b77#c77;,e71 an institution of higher education that is subject to a penalty under this paragraph-- 7aa7 that is a proprietary institution of higher education 7as defined in section #ajb7;b771 shall pay to the ,secretary a #a1jjj1jjj penalty2 and 7bb7 that is not a proprietary institution of higher education 7as defined in section #ajb7;b771 shall pay to the ,secretary for an academic year an amount equal to #be percent of the total amount of funds made available under subsection 7d7 to the institution during the #d academic years preceding the academic year for which the penalty is due under this paragraph4 7,,ii7 ,use of penalties ,the ,secretary shall use the penalty fees under this clause to fund the completion improvement program under subsection 7d7 and the completion bonus program under subsection 7e74 7ii7 ,second penalty year ,one year after the first academic year for which an institution of higher education that is not a proprietary institution of higher education 7as defined in section #ajb7;b77 pays a penalty under clause 7i77,i77bb71 the ,secretary shall determine the average percentage for such year after such first academic year and the #b preceding academic years of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years4 ,if such average percentage is less than the trigger mark described in paragraph 7#b77;,b77ii7 for such year after such first academic year1 the institution of higher education shall pay to the ,secretary for such year after such first academic year an amount equal to #dj percent of the total amount of funds made available under subsection 7d7 to the institution during the #e academic years preceding the academic year for which the penalty is due under this clause4 ,the ,secretary shall use such penalty fees to fund the completion improvement program under subsection 7d7 and the completion bonus program under subsection 7e74 7iii7 ,third penalty year ,two years after the first academic year for which an institution of higher education that is not a proprietary institution of higher education 7as defined in section #ajb7;b77 pays a penalty under clause 7i77,i77bb71 the ,secretary shall determine the average percentage for such second year after such first academic year and the #b preceding academic years of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years4 ,if such average percentage is less than the trigger mark described in paragraph 7#b77;,b77ii7 for such second year after such first academic year1 the institution of higher education shall pay to the ,secretary for such second year after such first academic year an amount equal to #ej percent of the total amount of funds made available under subsection 7d7 to the institution during the #f academic years preceding the academic year for which the penalty is due under this clause4 ,the ,secretary shall use such penalty fees to fund the completion improvement program under subsection 7d7 and the completion bonus program under subsection 7e74 7iv7 ,prohibitions ,an institution of higher education that is subject to a penalty under this subparagraph-- 7,i7 shall ensure that students enrolled at the institution receive the full amount of funding under this title they would otherwise have received had the institution not been subject to such penalty2 and 7,,ii7 may not1 in order to pay for the penalty fee-- 7aa7 reduce the amount of institutional need-based grant aid awarded to students to attend the institution2 and 7bb7 raise tuition or fees4 7v7 ,waiver ,the ,secretary may waive or reduce a penalty under this subparagraph if the ,secretary determines such a waiver is necessary to avoid extreme hardship for the students enrolled at the institution of higher education on which the penalty would be imposed4 7vi7 ,payment plan ,the ,secretary may allow an institution of higher education that owes a penalty under this subparagraph to enter into a payment plan to pay such penalty amount4 7,f7 ,appeals 7i7 ,in general ,an institution of higher education that is subject to a penalty under this paragraph may appeal the decision to impose such penalty to the ,secretary4 7ii7 ,content of appeal ,the appeals process shall permit the institution to demonstrate1 to the satisfaction of the ,secretary that there is some unforeseen and extreme circumstance that should warrant a waiver from such penalty1 a reduction in the amount of such penalty1 or removal of the institution from the bottom #e percent of those institutions ranked under paragraph 7#b77;,b74 7d7 ,completion improvement program 7#a7 ,in general ,from funds available under paragraph 7#e71 the ,secretary shall establish a completion improvement program to award grants to eligible institutions of higher education to support reforms to improve completion rates4 7#b7 ,eligible institutions ,an institution of higher education is eligible to receive a grant under this subsection if the institution-- 7,a7 is a public or other nonprofit institution of higher education that is in the bottom #e percent of those institutions ranked under subsection 7c77#b77;,b72 7,b7 has not been removed from the bottom #e percent of those institutions ranked pursuant to paragraph 7#b77;,b77iii77,,iii7 or 7#c77;,a7 of subsection 7c72 and 7,c7 has not elected to be exempt under subsection 7c77#a77;,b74 7#c7 ,determination of grant amount 7,a7 ,in general ,in awarding grants under this subsection1 the ,secretary shall determine a grant amount for each eligible institution according to the formula under subparagraph 7,b74 7,b7 ,grant amount formula 7i7 ,in general ,except as provided in clause 7iii71 the grant amount for an eligible institution described in paragraph 7#b7 for a fiscal year shall be equal to the ,pell weight of such institution for the fiscal year1 determined under clause 7ii71 multiplied by the amount available under paragraph 7#e7 for such fiscal year4 7ii7 ,pell weight 7,i7 ,in general ,the ,pell weight of an eligible institution for a fiscal year shall be equal to a percentage that is determined by dividing the institution's ,pell enrollment determined under subclause 7,,ii7 for the fiscal year by the total ,pell enrollment determined under subclause 7,,iii7 for the fiscal year4 7,,ii7 ,institution's pell enrollment ,an eligible institution's ,pell enrollment for a fiscal year shall be equal to the percentage of bachelor's degree-seeking students enrolled at the institution for the academic year that ended immediately preceding such fiscal year who received a ,federal ,pell ,grant for such academic year4 7,,iii7 ,total pell enrollment ,the total ,pell enrollment for a fiscal year shall be equal to the sum of the percentages of bachelor's degree-seeking students enrolled at each eligible institution1 described in paragraph 7#b71 for the academic year that ended immediately preceding such fiscal year who received a ,federal ,pell ,grant for such academic year4 7iii7 ,maximum grant amount ,the maximum grant amount for an eligible institution described in paragraph 7#b7 for a fiscal year shall be #b1jjj1jjj4 ,an eligible institution may choose to receive a grant amount that is less than #b1jjj1jjj4 ,any amounts available under paragraph 7#e7 for such fiscal year that are remaining after awarding grants in accordance with this subparagraph shall be used to carry out the completion bonus program under subsection 7e74 7#d7 ,use of funds ,an institution of higher education that receives a grant under this subsection shall use the grant funds for reforms and practices that are part of the improvement plan of the institution1 as described under subsection 7c77#c77;,b77i71 which may include the following3 7,a7 ,increasing funds available for ,federal ,work-,study ,programs for undergraduate students4 7,b7 ,increasing need-based institutional aid to students who are eligible for ,federal ,pell ,grants4 7,c7 ,enhancing academic advising and student support services4 7,d7 ,expanding accelerated learning opportunities4 7,e7 ,improving remedial course offerings4 7,f7 ,data- and technology-driven efforts to increase college completion rates4 7,g7 ,enhancing regular and proactive career advising and loan counseling services1 including post-enrollment services4 7,h7 ,efforts to close completion gaps-- 7i7 between non-low-income or working class students and low-income or working class students2 and 7ii7 between non-underrepresented minority students and underrepresented minority students4 7#e7 ,available funds ,funds shall be available to carry out this subsection from the penalty fees collected under subsections 7b77#c77;,e7 and 7c77#c77;,e74 7e7 ,completion bonus program 7#a7 ,in general ,from funds available under paragraph 7#e71 the ,secretary shall establish a completion bonus program to award grants on a competitive basis to eligible institutions of higher education to support reforms to improve completion rates4 7#b7 ,eligible institutions ,an institution of higher education is eligible to receive a grant under this subsection if the institution-- 7,a7 is not in the bottom #e percent of those institutions ranked under subsection 7c77#b77;,b72 and 7,b7 is not in the bottom #e percent of those institutions ranked under subsection 7b77#b77;,b74 7#c7 ,application and priority 7,a7 ,application ,an eligible institution that desires a grant under this subsection shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 7,b7 ,consideration and priority ,in awarding grants under this subsection1 the ,secretary-- 7i7 may consider an eligible institution's affordability1 student loan repayment rate1 and other factors2 and 7ii7 shall give priority to an eligible institution that is a part ,b institution 7as defined in section #cbb7 or a minority-serving institution 7as described in section #cga7;a774 7#d7 ,use of funds ,an eligible institution that receives a grant under this subsection shall use the grant funds for reforms and practices to improve completion rates1 which may include the following3 7,a7 ,increasing funds available for ,federal ,work-,study ,programs for undergraduate students4 7,b7 ,increasing need-based institutional aid to students who are eligible for ,federal ,pell ,grants4 7,c7 ,enhancing academic advising and student support services4 7,d7 ,expanding accelerated learning opportunities4 7,e7 ,improving remedial course offerings4 7,f7 ,data- and technology-driven efforts to increase college completion rates4 7,g7 ,enhancing regular and proactive career advising and loan counseling services1 including post-enrollment services4 7,h7 ,efforts to close completion gaps-- 7i7 between non-low-income or working class students and low-income or working class students2 and 7ii7 between non-underrepresented minority students and underrepresented minority students4 7,i7 ,enhancing the quality of the institution's academic programs4 7#e7 ,available funds ,funds shall be available to carry out this subsection from funds from the penalty fees collected under subsections 7b77#c77;,e7 and 7c77#c77;,e7 that are remaining after grants are awarded for the completion improvement program under subsection 7d74 7f7 ,non-,financial reward bonus program 7#a7 ,in general ,the ,secretary shall award non-financial rewards to institutions of higher education that have a proven record of making college more affordable and increasing college access and success for low-income or working class students and moderate-income students4 7#b7 ,institutional eligibility ,an institution of higher education is eligible for a non-financial reward under this subsection for an academic year if-- 7,a7 the percentage of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution for the academic year who received a ,federal ,pell ,grant for such academic year falls within the top #ej percent of ranked institutions1 as determined by the ,secretary for the academic year2 7,b7 the percentage of first-time1 full-time bachelor's degree-seeking students who enrolled at the institution who graduate within #f years falls within the top #be percent of ranked institutions1 as determined by the ,secretary for the academic year2 and 7,c7 the institution is not under ,federal investigation for a sanction for an academic or financial irregularity4 7#c7 ,applications ,an institution of higher education that desires to receive a non-financial reward under this subsection shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 7#d7 ,priority ,priority in awarding non-financial rewards under this subsection shall go to institutions of higher education that have small or diminishing gaps in the completion rates-- 7,a7 between non-low-income or working class students and low-income or working class students2 and 7,b7 between non-underrepresented minority students and underrepresented minority students4 7#e7 ,non-financial rewards ,non-financial rewards under this subsection may include the following3 7,a7 ,reporting less frequently and avoiding duplicative reporting requirements4 7,b7 ,extra points in ,department grant competitions for which institutions of higher education are eligible entities4 7,c7 ,waiving the multiple disbursement rule or disbursement delays4 7,d7 ,preferable status for experimental sites4 7g7 ,best practices ,the ,secretary shall establish a publicly available electronic database identifying best practices-- 7#a7 of institutions of higher education that were in the bottom #e percent of those institutions ranked under the improving college access program under subsection 7b7 or the improving college completion program under subsection 7c7 for academic year #bjag-bjah or for any succeeding academic year and that have improved their ranking2 7#b7 of eligible institutions of higher education awarded grants under the completion bonus program under subsection 7e7 to support reforms to improve completion rates2 and 7#c7 that the ,secretary has determined in carrying out this section4 7h7 ,accountability rule of construction ,nothing in this section shall be construed to affect accountability provisions under other sources of law4 7i7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section such sums as may be necessary4 4 7b7 ,report to ,congress ,not later than #b years after the date of enactment of this ,act1 the ,secretary of ,education shall submit a report to ,congress that provides recommendations on ways to expand section #dic;,e of the ,higher ,education ,act of #aife1 as added by subsection 7a71 to institutions with predominantly associate's-degree seeking students1 as well as other institutions of higher education not covered by such section4