,,ii #aafth ,,congress #ast ,session ,s4 #bcci ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #cj1 #bjai,mr4 ,lee 7for himself and ,mrs4 ,blackburn7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,higher ,education ,act of #aife to provide for accreditation reform1 to require institutions of higher education to publish information regarding student success1 to provide for fiscal accountability1 and to provide for school accountability for student loans4 #a4 ,short title ,this ,act may be cited as the ,higher ,education ,reform and ,opportunity ,act of #bjai4 ,i ,accreditation ,reform #aja4 ,accreditation reform 7a7 ,definition of ,institution of ,higher ,education ,section #ajb7;a77#a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb7;a77#a77 is amended-- 7#a7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively2 and 7#b7 by inserting after subparagraph 7,a7 the following3 7,b7 if accredited by an authorized accreditation authority in a ,state that has an alternative accreditation agreement with the ,secretary1 as described in section #dih;,c-- 7i7 an institution that provides postsecondary education2 7ii7 a postsecondary apprenticeship program2 or 7iii7 a postsecondary education course or program provided by an institution of postsecondary education1 a nonprofit organization1 or a for-profit organization or business2 4 7b7 ,state alternative accreditation ,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 #d ,state ,alternative ,accreditation #dih;,c4 ,state alternative accreditation 7a7 ,in general ,notwithstanding any other provision of law1 a ,state may establish an alternative accreditation system for the purpose of establishing institutions that provide postsecondary education and postsecondary education courses or programs as eligible for funding under title ,,iv if the ,state submits a plan to the ,secretary for the establishment of the alternative accreditation system4 ,such institutions1 courses1 or programs may include-- 7#a7 institutions that provide postsecondary education that culminates in a certification1 credential1 or degree2 7#b7 postsecondary apprenticeship programs that culminate in a certification1 credential1 or degree2 7#c7 any other postsecondary education course or program offered at an institution of postsecondary education1 a nonprofit organization1 or a for-profit organization or business1 that culminates in a certification1 credential1 or degree2 and 7#d7 any of the entities described in paragraphs 7#a7 through 7#c7 that do not award a postsecondary certification1 credential1 or degree1 provided that such entity provides credit that will be accepted toward a postsecondary certification1 credential1 or degree at one or more of the entities described in paragraphs 7#a7 through 7#c74 7b7 ,alternative accreditation notification ,the alternative accreditation plan described in subsection 7a7 shall include the following3 7#a7 ,the ,state's plan for designating one or more authorized accrediting entities within the ,state1 such as the ,state ,department of ,education1 another ,state agency1 an industry-specific accrediting agency1 or another entity1 and an explanation of the process through which the ,state will select such authorized accrediting entities4 7#b7 ,the standards or criteria that an institution that provides postsecondary education and a postsecondary education course or program must meet in order to-- 7,a7 receive an initial accreditation as part of the alternative accreditation system2 and 7,b7 maintain such accreditation4 7#c7 ,a description of the appeals process through which an institution that provides postsecondary education or a postsecondary education course or program may appeal to an authorized accrediting entity if such institution1 course1 or program is denied accreditation under the ,state alternative accreditation system4 7#d7 ,any ,state policy regarding public accessibility to certain information relating to institutions that provide postsecondary education and postsecondary education courses and programs accredited under the ,state alternative accreditation system1 including-- 7,a7 the information described in subsection 7e77#a72 and 7,b7 information about the rates of job placement for individuals that have graduated from an institution or completed a course or program that is accredited under the ,state alternative accreditation system1 if available4 7#e7 ,an assurance by the ,state that under the ,state alternative accreditation system1 only institutions that provide postsecondary education and postsecondary education courses or programs that provide a postsecondary certification1 credential1 or degree1 or credits toward a postsecondary certification1 credential1 or degree 7as defined by the ,state in accordance with paragraph 7#f77 will be accredited4 7#f7 ,the ,state's definition of a postsecondary certification1 credential1 or degree1 as such term applies to the requirement described in paragraph 7#e74 7#g7 ,a description of the agreements that the ,state will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system for purposes of accreditation regarding requirements for instructional time1 in lieu of the requirements described under section #dha7;a77#b74 7#h7 ,a description of the agreements that the ,state will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system regarding requirements for credit hours or clock hours1 or other measures of student learning1 in lieu of the requirements described under section #dha7;b74 7c7 ,review and approval ,not later than #cj days after the ,secretary receives a plan from a ,state regarding an alternative accreditation system1 the ,secretary shall submit to the ,state and ,congress1 and make publicly available1 a response to the ,state's plan4 ,the ,secretary shall approve the plan and allow the ,state to establish the alternative accreditation system if the plan meets the requirements described in subsection 7b74 7d7 ,time limit ,each plan approved under subsection 7c7 shall allow a ,state to carry out an alternative accreditation system in the ,state for a period of #e years4 7e7 ,reporting requirements ,states that establish an alternative accreditation system shall submit a report to the ,secretary every #c years following the implementation of the alternative accreditation system4 ,the report shall include-- 7#a7 in the case of a postsecondary education course or program that is accredited through the ,state alternative accreditation system-- 7,a7 the number and percentage of students who successfully complete each such postsecondary education course or program2 and 7,b7 for postsecondary education courses or programs that lead to a certification1 credential1 or degree1 the number of students in such course or program2 and 7#b7 in the case of an institution that provides postsecondary education that is accredited through the ,state alternative accreditation system-- 7,a7 the number and percentage of students who successfully obtain a postsecondary certification1 credential1 or degree from such institution2 and 7,b7 the number and percentage of students who do not successfully obtain a postsecondary certification1 credential1 or degree from such institution but do obtain credit from such institution toward a postsecondary degree1 credential1 or certification2 and 7#c7 a description of any requirements for third-party verification of information contained in the report4 4 7c7 ,title ,,iv eligibility requirements ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,state ,accredited ,institutions1 ,programs1 or ,courses ,notwithstanding any other provision of law1 an institution1 program1 or course that is eligible for funds under this title in accordance with section #ajb7;a77#a77;,b7 and meets the requirements of section #dih;,c-- 7#a7 shall not be required to meet the requirements of section #dif2 and 7#b7 shall not be required to meet the requirements described in subsections 7a77#b7 and 7b7 of section #dha4 4 ,,ii ,transparency in ,higher ,education #bja4 ,time for transparency in higher education 7a7 ,in general ,title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 is amended-- 7#a7 in section #dhg7;a71 by adding at the end the following3 7#cj7 ,the institution will publish information in compliance with section #dic;,e4 2 and 7#b7 in part ,g1 by adding at the end the following3 #dic;,e4 ,institutional publication of information 7a7 ,publication of information 7#a7 ,in general ,each institution of higher education participating in a program under this title shall publish on the institution's website and in an alternative format1 on an annual basis1 the information described in paragraphs 7#b7 and 7#c74 ,to the extent that such data is available1 an institution may use data that the institution is already collecting in accordance with other ,federal requirements4 7#b7 ,information ,each institution of higher education described in paragraph 7#a7 shall publish1 with respect to the institution as a whole and with respect to each program of study offered by the institution1 the following information for the most recent fiscal year for which the information is available3 7,a7 ,for each of the following1 the percentage and number of students enrolled at the institution or in the program of study1 as applicable1 who receive the following3 7i7 ,federal grant aid1 including ,federal ,pell ,grants under subpart #a of part ,a1 ,federal ,supplemental ,educational ,opportunity ,grants under subpart #c of part ,a1 or any other ,federal postsecondary education grant aid or subsidy4 7ii7 ,federal student loans1 including ,federal loans under part ,d4 7iii7 ,state grant aid4 7iv7 ,institutional grants4 7v7 ,a student loan from a ,state4 7,b7 ,student body enrollment status1 including as a-- 7i7 first-time1 full-time student2 7ii7 first-time1 part-time student2 7iii7 non-first-time1 full-time student2 and 7iv7 non-first-time1 part-time student4 7,c7 ,information about students that includes the following3 7i7 ,the percentage of students who do not complete the program of study the student initially started upon enrollment4 7ii7 ,the percentage of students who transfer4 7iii7 ,the percentage of students who complete the program of study the student initially started upon enrollment4 7iv7 ,the average length of time for a student to complete the program of study4 7v7 ,the percentage of students who continue on to higher levels of education4 7vi7 ,the percentage of former students who received financial aid who are employed at #b1 #d1 and #f years after graduating1 disaggregated by program of study4 7vii7 ,the median earnings of former students who earned a degree or credential and received financial aid on the date that is #aj years after the date the students first enrolled in a program of study at the institution1 disaggregated by program of study4 7viii7 ,the median earnings of former students who received financial aid on the date that is #aj years after the date the students first enrolled in a program of study at the institution1 disaggregated by program of study4 7#c7 ,publication of default and non-repayment rates ,in addition to the information described in paragraph 7#b71 each institution of higher education described in paragraph 7#a7 shall publish1 with respect to the institution as a whole and with respect to each program of study offered by the institution1 the following information for the most recent fiscal year for which the information is available3 7,a7 ,the average amount of total ,federal student loan debt accrued upon graduation4 7,b7 ,the average amount of total ,federal student loan debt accrued by students who leave the institution without having graduated4 7,c7 ,federal student loan default rate4 7,d7 ,federal student loan non-repayment rate4 7,e7 ,default and non-repayment rate1 including as a-- 7i7 first-time1 full-time student2 7ii7 first-time1 part-time student2 7iii7 non-first-time1 full-time student2 and 7iv7 non-first-time1 part-time student4 7,f7 ,default and non-repayment rate1 of-- 7i7 students who complete a program of study2 7ii7 students who transfer2 and 7iii7 students who do not complete a program of study4 7b7 ,privacy 7#a7 ,compliance with ,,ferpa ,in carrying out this section1 an institution of higher education and any personnel of the institution shall not share any personally identifiable information and shall act in accordance with section #ddd of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;g1 commonly known as the ,family ,educational ,rights and ,privacy ,act of #aigd74 7#b7 ,prohibition on use of information ,information published pursuant to this section shall not be used by a ,federal employee1 agency1 or officer1 or an institution of higher education to take action against an individual4 7#c7 ,penalties ,the ,secretary shall establish penalties for a violation of paragraph 7#a7 or 7#b7 that includes both a monetary fine and up to #e years in prison4 7c7 ,rule of construction ,nothing in this section shall be construed to authorize or permit the ,secretary or any employee or contractor of the ,department to mandate1 direct1 or control the selection of practices or curriculum by an institution of higher education4 4 7b7 ,,gao report 7#a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study that compiles all the institutional publication of information pursuant to section #dic;,e of the ,higher ,education ,act of #aife1 as added by subsection 7a7 of this ,act4 7#b7 ,report ,not later than ,october #a of the fourth fiscal year after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit a report containing the results of the study under paragraph 7#a7 to the appropriate committees of ,congress4 ,,iii ,fiscal ,accountability #cja4 ,simplification of ,federal student loans 7a7 ,termination ,section #dea of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a7 is amended-- 7#a7 in subsection 7a71 by adding at the end the following3 ,no sums may be expended after ,september #cj1 #bjbf1 with respect to loans under this part for which the first disbursement is after such date1 except ,federal ,direct simplification loans under section #dfj;,a42 and 7#b7 by adding at the end1 the following3 7c7 ,termination of authority ,to make new loans ,notwithstanding subsection 7a7 or any other provision of law-- 7#a7 no new loans may be made under this part after ,september #cj1 #bjbf1 except ,federal ,direct simplification loans under section #dfj;,a2 and 7#b7 no funds are authorized to be appropriated1 or may be expended1 under this ,act1 or any other ,act to make loans under this part for which the first disbursement is after ,september #cj1 #bjbf1 except ,federal ,direct simplification loans under section #dfj;,a1 or as expressly authorized by an ,act of ,congress enacted after the date of enactment of ,higher ,education ,reform and ,opportunity ,act of #bjai4 7d7 ,student eligibility beginning with award year #bjbb 7#a7 ,new borrowers ,no loan may be made under this part to a new borrower for which the first disbursement is after ,june #cj1 #bjbb1 except ,federal ,direct simplification loans under section #dfj;,a4 7#b7 ,borrowers with outstanding balances ,subject to paragraph 7#c71 with respect to a borrower who1 as of ,july #a1 #bjbb1 has an outstanding balance of principal or interest owing on a loan made under this part that is not a ,federal ,direct simplification loan under section #dfj;,a1 such borrower may-- 7,a7 in the case of such a loan made to the borrower for enrollment in a program of undergraduate education1 borrow loans made under this part that are not ,federal ,direct simplification loans under section #dfj;,a for any program of undergraduate education through the close of ,september #cj1 #bjbf2 7,b7 in the case of such a loan made to the borrower for enrollment in a program of graduate or professional education1 borrow loans made under this part that are not ,federal ,direct simplification loans under section #dfj;,a for any program of graduate or professional education through the close of ,september #cj1 #bjbf2 and 7,c7 in the case of such a loan made to the borrower on behalf of a dependent student for the student's enrollment in a program of undergraduate education1 borrow loans made under this part that are not ,federal ,direct simplification loans under section #dfj;,a on behalf of such student through the close of ,september #cj1 #bjbf4 7#c7 ,loss of eligibility ,a borrower described in paragraph 7#b7 who borrows a ,federal ,direct simplification loan made under section #dfj;,a for which the first disbursement is made before ,september #cj1 #bjbf1 shall lose the borrower's eligibility to borrow a loan under this part that is not a ,federal ,direct simplification loan under section #dfj;,a in accordance with paragraph 7#b74 4 7b7 ,federal ,direct simplification loans ,part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfj;,a4 ,federal ,direct simplification loans 7a7 ,in general ,beginning on ,july #a1 #bjbb1 except as provided in section #dea7;d71 the ,secretary shall make loans to borrowers under this section4 ,loans made under this section shall be known as ,federal ,direct simplification loans4 7b7 ,federal ,direct simplification loans ,the provisions of this part shall apply with respect to ,federal ,direct simplification loans1 except that ,federal ,direct simplification loans shall be made in accordance with the following3 7#a7 ,the applicable rate of interest on a loan made under this section shall1 for loans disbursed during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7,a7 a rate equal to the high yield of the #aj-year ,treasury note auctioned at the final auction held prior to such ,june #a2 plus 7,b7 #c4f percent4 7#b7 ,interest on a loan made under this section shall begin to accrue on the date the loan is disbursed4 7#c7 ,the maximum-- 7,a7 annual amount of loans under this section an undergraduate student may borrow in any academic year 7as defined in section #dha7;a77#b77 or its equivalent shall be equal to #g1ejj2 and 7,b7 aggregate amount of loans under this section an undergraduate student may borrow shall be equal to #cj1jjj4 7#d7 ,the maximum-- 7,a7 annual amount of loans under this section a graduate or professional student may borrow in any academic year 7as defined in section #dha7;a77#b77 or its equivalent shall be equal to #ab1ejj2 and 7,b7 aggregate amount of loans under this section a graduate or professional student may borrow shall be equal to #ej1jjj4 7#e7 ,the only length of repayment-- 7,a7 for a loan borrowed by an undergraduate student shall be #ae years2 and 7,b7 for a loan borrowed by a graduate or professional student shall be #be years4 7#f7 ,repayment on a loan made under this section shall begin-- 7,a7 after #abe percent of the normal time for completion of the program of study for which the borrower receives the loan under this section2 or 7,b7 if the borrower withdraws from the program of study before the borrower completes the program1 #f months after the date the borrower withdraws4 7#g7 ,the ,secretary shall not repay or cancel any outstanding balance of principal or interest due on a ,federal ,direct simplification loan as part of a student loan forgiveness program1 including such a program under section #dee7m7 and section #dic;,c4 7c7 ,authorization ,to limit loan amounts ,an institution of higher education that is required under ,state law to enroll all eligible applicants for an academic year may limit the amount of loans under this section that a student may borrow for such academic year to not more than the tuition and fees at such institution for such academic year4 7d7 ,loan fee ,the ,secretary shall not charge the borrower of a loan made under this part an origination fee4 7e7 ,repayment ,a borrower of a loan made under this section may accelerate without penalty repayment of the whole or any part of the loan4 4 #cjb4 ,phasing out loan forgiveness ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended-- 7#a7 in section #dee-- 7,a7 in subsection 7d77#a71 in the matter preceding subparagraph 7,a71 by inserting 7except a ,federal ,direct simplification loan7 after borrower of a loan made under this part2 7,b7 in subsection 7e71 by adding at the end the following3 7#h7 ,federal ,direct simplification loans ,income contingent repayment shall not be available for a ,federal ,direct simplification loan4 2 and 7,c7 in subsection 7m71 by adding at the end the following3 7#e7 ,elimination of loan forgiveness 7,a7 ,in ,general ,notwithstanding any other provision of this ,act and subject to subparagraph 7,b71 with respect to any loan made on or after ,july #a1 #bjbb1 the ,secretary may not cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection4 7,b7 ,loans for continuing program of study ,in the case of a borrower whose first loan for a program of study is made prior to ,july #a1 #bjbb1 the ,secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this subsection for-- 7i7 loans made during the time it takes to complete that program of study2 or 7ii7 loans made before ,july #a1 #bjbf2 whichever occurs earlier4 2 and 7#b7 in section #dic;,c1 by adding at the end the following3 7f7 ,elimination of loan forgiveness 7#a7 ,in ,general ,notwithstanding any other provision of this ,act and subject to paragraph 7#b71 with respect to any loan made on or after ,july #a1 #bjbb1 the ,secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this section4 7#b7 ,loans for continuing program of study ,in the case of a borrower whose first loan for a program of study is made prior to ,july #a1 #bjbb1 the ,secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this section for-- 7,a7 loans made during the time it takes to complete that program of study2 or 7,b7 loans made before ,july #a1 #bjbf2 whichever occurs earlier4 4 ,,iv ,school ,accountability for ,student ,loans #dja4 ,school accountability for student loans 7a7 ,default rate fine ,section #dhg of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid71 as amended by section #bja1 is further amended-- 7#a7 in subsection 7a71 by adding at the end the following3 7#ca7 ,the institution will pay a default rate fine that is determined pursuant to subsection 7k74 2 and 7#b7 by adding at the end the following3 7k7 ,default rate fine 7#a7 ,in general ,each institution described in paragraph 7#b7 shall pay to the ,secretary an annual default rate fine in accordance with this subsection4 7#b7 ,applicable institutions ,an institution shall pay a default rate fine under this subsection for a fiscal year based on the cohort default rate 7as defined in section #dce7m77 on loans made under this title for such fiscal year4 7#c7 ,fine 7,a7 ,in general ,each institution described in paragraph 7#b7 shall pay a default rate fine for a fiscal year that is equal to #aj percent of the applicable amount determined under subparagraph 7,b77i7 for such fiscal year4 7,b7 ,applicable amount 7i7 ,in general ,the applicable amount for a fiscal year with respect to an institution shall be an amount equal to the product of the amount of loans made under this title for such fiscal year1 and the applicable rate determined in clause 7ii74 ,if the applicable rate is equal to or less than zero percent then the applicable amount shall be equal to zero4 7ii7 ,applicable rate ,the applicable rate for a fiscal year with respect to an institution shall be the rate that is equal to the difference between the cohort default rate on loans made under this title 7as defined in section #dce7m77 for such fiscal year and the average rate of total unemployment in the ,united ,states for the #c-year period covered by that cohort default rate 7as defined in section #dce7m771 as determined by the ,secretary of ,labor4 7#d7 ,credit for certain institutions ,each institution that is described in paragraph 7#b7 shall receive a #djj credit for the fiscal year for each graduate of the institution during such fiscal year who received a ,federal ,pell ,grant while enrolled at the institution4 7#e7 ,flexibility in counsel and advice ,notwithstanding any other provision of the ,act1 the ,secretary shall grant institutions of higher education flexibility under this ,act to counsel and advise students on ,federal financial aid1 including granting flexibility for institutions to award less than the maximum amount of ,federal student aid for which an individual is eligible if the cost of tuition1 room1 and board at the institution is less than such maximum amount4 4 7b7 ,flexibility in counseling and advice ,section #dhe7l7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7l77 is amended by adding at the end the following3 7#c7 ,flexibility in counseling and advice ,in addition to the entrance counseling under paragraph 7#a71 an eligible institution may require any borrower1 at or prior to the time of a disbursement to the borrower of a loan made under part ,d1 to receive the information described in paragraph 7#b7 with respect to such loan1 or any other financial counseling1 including financial literacy counseling4 4