,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bcci  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #cj1 #bjai,mr4   
,lee 7= himself & ,mrs4 ,blackburn7     
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,high] ,education 
,act ( #aife to provide = accr$itation  
re=m1 to require in/itutions ( high]    
education to publi% in=mation reg>d+    
/ud5t success1 to provide = fiscal      
acc\ntability1 & to provide = s*ool     
acc\ntability = /ud5t loans4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,high]  
,education ,re=m & ,opportunity ,act (  
#bjai4  ,i ,accr$itation ,re=m  #aja4   
,accr$itation re=m  7a7 ,def9ition (    
,in/itution ( ,high] ,education ,section
 #ajb7;a77#a7 ( ! ,high] ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ajjb7;a77#a77  
is am5d$--  7#a7 by r$esignat+          
subp>agraphs 7,b7 & 7,c7 z subp>agraphs 
7,c7 & 7,d71 respectively2 &  7#b7 by   
ins]t+ aft] subp>agraph 7,a7 ! foll[+3  

7,b7 if accr$it$ by an au?oriz$         
accr$itation au?ority 9 a ,/ate t has an
 alt]native accr$itation agreem5t ) !   
,secret>y1 z describ$ 9 section         
#dih;,c--  7i7 an in/itution t provides 
po/second>y education2  7ii7 a          
po/second>y appr5tice%ip program2 or    
7iii7 a po/second>y education c\rse or  
program provid$ by an in/itution (      
po/second>y education1 a nonpr(it       
organization1 or a =-pr(it organization 
or bus9ess2  4  7b7 ,/ate alt]native    
accr$itation ,"p ,h ( title ,,iv ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajii;a et seq47 is am5d$ by  
add+ at ! end ! foll[+3  #d ,/ate       
,alt]native ,accr$itation  #dih;,c4     
,/ate alt]native accr$itation  7a7 ,9   
g5]al ,not)/&+ any o!r provision ( law1 
a ,/ate may e/abli% an alt]native       
accr$itation sy/em = ! purpose (        
e/abli%+ in/itutions t provide          
po/second>y education & po/second>y     
education c\rses or programs z eligible 
= fund+ "u title ,,iv if ! ,/ate submits

 a plan to ! ,secret>y = ! e/abli%m5t ( 
! alt]native accr$itation sy/em4 ,su*   
in/itutions1 c\rses1 or programs may    
include--  7#a7 in/itutions t provide   
po/second>y education t culm9ates 9 a   
c]tification1 cr$5tial1 or degree2  7#b7
 po/second>y appr5tice%ip programs t    
culm9ate 9 a c]tification1 cr$5tial1 or 
degree2  7#c7 any o!r po/second>y       
education c\rse or program (f]$ at an   
in/itution ( po/second>y education1 a   
nonpr(it organization1 or a =-pr(it     
organization or bus9ess1 t culm9ates 9 a
 c]tification1 cr$5tial1 or degree2 &   
7#d7 any ( ! entities describ$ 9        
p>agraphs 7#a7 ?r\gh 7#c7 t d n aw>d a  
po/second>y c]tification1 cr$5tial1 or  
degree1 provid$ t su* entity provides   
cr$it t w be accept$ t[>d a po/second>y 
c]tification1 cr$5tial1 or degree at "o 
or m ( ! entities describ$ 9 p>agraphs  
7#a7 ?r\gh 7#c74  7b7 ,alt]native       
accr$itation notification ,! alt]native 
accr$itation plan describ$ 9 subsection 
7a7 %all include ! foll[+3  7#a7 ,!     

,/ate's plan = designat+ "o or m        
au?oriz$ accr$it+ entities )9 ! ,/ate1  
su* z ! ,/ate ,dep>tm5t ( ,education1   
ano!r ,/ate ag5cy1 an indu/ry-specific  
accr$it+ ag5cy1 or ano!r entity1 & an   
explanation ( ! process ?r\gh :i* !     
,/ate w select su* au?oriz$ accr$it+    
entities4  7#b7 ,! /&>ds or crit]ia t an
 in/itution t provides po/second>y      
education & a po/second>y education     
c\rse or program mu/ meet 9 ord] to--   
7,a7 receive an initial accr$itation z  
"p ( ! alt]native accr$itation sy/em2 & 
7,b7 ma9ta9 su* accr$itation4  7#c7 ,a  
description ( ! appeals process ?r\gh   
:i* an in/itution t provides po/second>y
 education or a po/second>y education   
c\rse or program may appeal to an       
au?oriz$ accr$it+ entity if su*         
in/itution1 c\rse1 or program is d5i$   
accr$itation "u ! ,/ate alt]native      
accr$itation sy/em4  7#d7 ,any ,/ate    
policy reg>d+ public accessibility to   
c]ta9 in=mation relat+ to in/itutions t 
provide po/second>y education &         

po/second>y education c\rses & programs 
accr$it$ "u ! ,/ate alt]native          
accr$itation sy/em1 includ+--  7,a7 !   
in=mation describ$ 9 subsection 7e77#a72
 &  7,b7 in=mation ab\t ! rates ( job   
placem5t = individuals t h graduat$ f an
 in/itution or complet$ a c\rse or      
program t is accr$it$ "u ! ,/ate        
alt]native accr$itation sy/em1 if       
available4  7#e7 ,an assurance by !     
,/ate t "u ! ,/ate alt]native           
accr$itation sy/em1 only in/itutions t  
provide po/second>y education &         
po/second>y education c\rses or programs
 t provide a po/second>y c]tification1  
cr$5tial1 or degree1 or cr$its t[>d a   
po/second>y c]tification1 cr$5tial1 or  
degree 7z def9$ by ! ,/ate 9 accordance 
) p>agraph 7#f77 w be accr$it$4  7#f7 ,!
 ,/ate's def9ition ( a po/second>y      
c]tification1 cr$5tial1 or degree1 z su*
 t]m applies to ! requirem5t describ$ 9 
p>agraph 7#e74  7#g7 ,a description ( ! 
agreem5ts t ! ,/ate w ent] into )       
in/itutions t provide po/second>y       

education & po/second>y education c\rses
 or programs t are accr$it$ "u !        
alt]native accr$itation sy/em = purposes
 ( accr$itation reg>d+ requirem5ts =    
in/ructional "t1 9 lieu ( ! requirem5ts 
describ$ "u section #dha7;a77#b74  7#h7 
,a description ( ! agreem5ts t ! ,/ate w
 ent] into ) in/itutions t provide      
po/second>y education & po/second>y     
education c\rses or programs t are      
accr$it$ "u ! alt]native accr$itation   
sy/em reg>d+ requirem5ts = cr$it h\rs or
 clock h\rs1 or o!r measures ( /ud5t    
le>n+1 9 lieu ( ! requirem5ts describ$  
"u section #dha7;b74  7c7 ,review &     
approval ,n lat] ?an #cj days aft] !    
,secret>y receives a plan f a ,/ate     
reg>d+ an alt]native accr$itation sy/em1
 ! ,secret>y %all submit to ! ,/ate &   
,congress1 & make publicly available1 a 
response to ! ,/ate's plan4 ,! ,secret>y
 %all approve ! plan & all[ ! ,/ate to  
e/abli% ! alt]native accr$itation sy/em 
if ! plan meets ! requirem5ts describ$ 9
 subsection 7b74  7d7 ,"t limit ,ea*    

plan approv$ "u subsection 7c7 %all all[
 a ,/ate to c>ry out an alt]native      
accr$itation sy/em 9 ! ,/ate = a p]iod (
 #e ye>s4  7e7 ,report+ requirem5ts     
,/ates t e/abli% an alt]native          
accr$itation sy/em %all submit a report 
to ! ,secret>y e #c ye>s foll[+ !       
implem5tation ( ! alt]native            
accr$itation sy/em4 ,! report %all      
include--  7#a7 9 ! case ( a po/second>y
 education c\rse or program t is        
accr$it$ ?r\gh ! ,/ate alt]native       
accr$itation sy/em--  7,a7 ! numb] &    
p]c5tage ( /ud5ts :o successfully       
complete ea* su* po/second>y education  
c\rse or program2 &  7,b7 = po/second>y 
education c\rses or programs t lead to a
 c]tification1 cr$5tial1 or degree1 !   
numb] ( /ud5ts 9 su* c\rse or program2 &
  7#b7 9 ! case ( an in/itution t       
provides po/second>y education t is     
accr$it$ ?r\gh ! ,/ate alt]native       
accr$itation sy/em--  7,a7 ! numb] &    
p]c5tage ( /ud5ts :o successfully obta9 
a po/second>y c]tification1 cr$5tial1 or

 degree f su* in/itution2 &  7,b7 !     
numb] & p]c5tage ( /ud5ts :o d n        
successfully obta9 a po/second>y        
c]tification1 cr$5tial1 or degree f su* 
in/itution b d obta9 cr$it f su*        
in/itution t[>d a po/second>y degree1   
cr$5tial1 or c]tification2 &  7#c7 a    
description ( any requirem5ts =         
?ird-p>ty v]ification ( in=mation       
conta9$ 9 ! report4  4  7c7 ,title ,,iv 
eligibility requirem5ts ,"p ,g ( title  
,,iv ( ! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajhh et seq47 is am5d$  
by add+ at ! end ! foll[+3  #dic;,e4    
,/ate ,accr$it$ ,in/itutions1 ,programs1
 or ,c\rses ,not)/&+ any o!r provision (
 law1 an in/itution1 program1 or c\rse t
 is eligible = funds "u ?is title 9     
accordance ) section #ajb7;a77#a77;,b7 &
 meets ! requirem5ts ( section #dih;,c--
  7#a7 %all n be requir$ to meet !      
requirem5ts ( section #dif2 &  7#b7 %all
 n be requir$ to meet ! requirem5ts     
describ$ 9 subsections 7a77#b7 & 7b7 (  
section #dha4  4  ,,ii ,transp>5cy 9    

,high] ,education  #bja4 ,"t =          
transp>5cy 9 high] education  7a7 ,9    
g5]al ,title ,,iv ( ! ,high] ,education 
,act ( #aife 7#bj ,u4,s4,c4 #ajgj et    
seq47 is am5d$-- 7#a7 9 section         
#dhg7;a71 by add+ at ! end ! foll[+3    
7#cj7 ,! in/itution w publi% in=mation 9
 compliance ) section #dic;,e4  2 &     
7#b7 9 "p ,g1 by add+ at ! end ! foll[+3
  #dic;,e4 ,in/itutional publication (  
in=mation  7a7 ,publication ( in=mation 
7#a7 ,9 g5]al ,ea* in/itution ( high]   
education p>ticipat+ 9 a program "u ?is 
title %all publi% on ! in/itution's     
website & 9 an alt]native =mat1 on an   
annual basis1 ! in=mation describ$ 9    
p>agraphs 7#b7 & 7#c74 ,to ! ext5t t su*
 data is available1 an in/itution may   
use data t ! in/itution is already      
collect+ 9 accordance ) o!r ,f$]al      
requirem5ts4  7#b7 ,in=mation ,ea*      
in/itution ( high] education describ$ 9 
p>agraph 7#a7 %all publi%1 ) respect to 
! in/itution z a :ole & ) respect to ea*
 program ( /udy (f]$ by ! in/itution1 ! 

foll[+ in=mation = ! mo/ rec5t fiscal   
ye> = :i* ! in=mation is available3     
7,a7 ,= ea* ( ! foll[+1 ! p]c5tage &    
numb] ( /ud5ts enroll$ at ! in/itution  
or 9 ! program ( /udy1 z applicable1 :o 
receive ! foll[+3  7i7 ,f$]al grant aid1
 includ+ ,f$]al ,pell ,grants "u subp>t 
#a ( "p ,a1 ,f$]al ,supplem5tal         
,educational ,opportunity ,grants "u    
subp>t #c ( "p ,a1 or any o!r ,f$]al    
po/second>y education grant aid or      
subsidy4  7ii7 ,f$]al /ud5t loans1      
includ+ ,f$]al loans "u "p ,d4  7iii7   
,/ate grant aid4  7iv7 ,in/itutional    
grants4  7v7 ,a /ud5t loan f a ,/ate4   
7,b7 ,/ud5t body enrollm5t /atus1       
includ+ z a-- 7i7 fir/-"t1 full-"t      
/ud5t2  7ii7 fir/-"t1 "p-"t /ud5t2      
7iii7 non-fir/-"t1 full-"t /ud5t2 &     
7iv7 non-fir/-"t1 "p-"t /ud5t4  7,c7    
,in=mation ab\t /ud5ts t includes !     
foll[+3  7i7 ,! p]c5tage ( /ud5ts :o d n
 complete ! program ( /udy ! /ud5t      
initially />t$ ^u enrollm5t4  7ii7 ,!   
p]c5tage ( /ud5ts :o transf]4  7iii7 ,! 

p]c5tage ( /ud5ts :o complete ! program 
( /udy ! /ud5t initially />t$ ^u        
enrollm5t4  7iv7 ,! av]age l5g? ( "t = a
 /ud5t to complete ! program ( /udy4    
7v7 ,! p]c5tage ( /ud5ts :o cont9ue on  
to high] levels ( education4  7vi7 ,!   
p]c5tage ( =m] /ud5ts :o receiv$        
f9ancial aid :o are employ$ at #b1 #d1 &
 #f ye>s aft] graduat+1 disaggregat$ by 
program ( /udy4  7vii7 ,! m$ian e>n+s ( 
=m] /ud5ts :o e>n$ a degree or cr$5tial 
& receiv$ f9ancial aid on ! date t is   
#aj ye>s aft] ! date ! /ud5ts fir/      
enroll$ 9 a program ( /udy at !         
in/itution1 disaggregat$ by program (   
/udy4  7viii7 ,! m$ian e>n+s ( =m]      
/ud5ts :o receiv$ f9ancial aid on ! date
 t is #aj ye>s aft] ! date ! /ud5ts fir/
 enroll$ 9 a program ( /udy at !        
in/itution1 disaggregat$ by program (   
/udy4  7#c7 ,publication ( default &    
non-repaym5t rates ,9 addition to !     
in=mation describ$ 9 p>agraph 7#b71 ea* 
in/itution ( high] education describ$ 9 
p>agraph 7#a7 %all publi%1 ) respect to 

! in/itution z a :ole & ) respect to ea*
 program ( /udy (f]$ by ! in/itution1 ! 
foll[+ in=mation = ! mo/ rec5t fiscal   
ye> = :i* ! in=mation is available3     
7,a7 ,! av]age am\nt ( total ,f$]al     
/ud5t loan debt accru$ ^u graduation4   
7,b7 ,! av]age am\nt ( total ,f$]al     
/ud5t loan debt accru$ by /ud5ts :o     
leave ! in/itution )\t hav+ graduat$4   
7,c7 ,f$]al /ud5t loan default rate4    
7,d7 ,f$]al /ud5t loan non-repaym5t     
rate4  7,e7 ,default & non-repaym5t     
rate1 includ+ z a-- 7i7 fir/-"t1 full-"t
 /ud5t2  7ii7 fir/-"t1 "p-"t /ud5t2     
7iii7 non-fir/-"t1 full-"t /ud5t2 &     
7iv7 non-fir/-"t1 "p-"t /ud5t4  7,f7    
,default & non-repaym5t rate1 (--  7i7  
/ud5ts :o complete a program ( /udy2    
7ii7 /ud5ts :o transf]2 &  7iii7 /ud5ts 
:o d n complete a program ( /udy4  7b7  
,privacy  7#a7 ,compliance ) ,,f]pa ,9  
c>ry+ out ?is section1 an in/itution (  
high] education & any p]sonnel ( !      
in/itution %all n %>e any p]sonally     
id5tifiable in=mation & %all act 9      

accordance ) section #ddd ( ! ,g5]al    
,education ,provisions ,act 7#bj        
,u4,s4,c4 #abcb;g1 commonly kn[n z !    
,family ,educational ,rights & ,privacy 
,act ( #aigd74  7#b7 ,prohibition on use
 ( in=mation ,in=mation publi%$ pursuant
 to ?is section %all n be us$ by a      
,f$]al employee1 ag5cy1 or (fic]1 or an 
in/itution ( high] education to take    
action aga9/ an individual4  7#c7       
,p5alties ,! ,secret>y %all e/abli%     
p5alties = a violation ( p>agraph 7#a7  
or 7#b7 t includes bo? a monet>y f9e &  
up to #e ye>s 9 prison4  7c7 ,rule (    
con/ruction ,no?+ 9 ?is section %all be 
con/ru$ to au?orize or p]mit ! ,secret>y
 or any employee or contractor ( !      
,dep>tm5t to m&ate1 direct1 or control !
 selection ( practices or curriculum by 
an in/itution ( high] education4  4  7b7
 ,,gao report  7#a7 ,/udy ,! ,comptroll]
 ,g5]al ( ! ,unit$ ,/ates %all conduct a
 /udy t compiles all ! in/itutional     
publication ( in=mation pursuant to     
section #dic;,e ( ! ,high] ,education   

,act ( #aife1 z add$ by subsection 7a7 (
 ?is ,act4  7#b7 ,report ,n lat] ?an    
,octob] #a ( ! f\r? fiscal ye> aft] !   
date ( enactm5t ( ?is ,act1 !           
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all submit a report conta9+ ! results (
 ! /udy "u p>agraph 7#a7 to !           
appropriate committees ( ,congress4     
,,iii ,fiscal ,acc\ntability  #cja4     
,simplification ( ,f$]al /ud5t loans    
7a7 ,t]m9ation ,section #dea ( ! ,high] 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a7 is am5d$-- 7#a7 9 subsection   
7a71 by add+ at ! end ! foll[+3 ,no sums
 may be exp5d$ aft] ,septemb] #cj1      
#bjbf1 ) respect to loans "u ?is "p =   
:i* ! fir/ disbursem5t is aft] su* date1
 except ,f$]al ,direct simplification   
loans "u section #dfj;,a42 &  7#b7 by   
add+ at ! end1 ! foll[+3  7c7 ,t]m9ation
 ( au?ority ,to make new loans ,not)/&+ 
subsection 7a7 or any o!r provision (   
law--  7#a7 no new loans may be made "u 
?is "p aft] ,septemb] #cj1 #bjbf1 except
 ,f$]al ,direct simplification loans "u 

section #dfj;,a2 &  7#b7 no funds are   
au?oriz$ to be appropriat$1 or may be   
exp5d$1 "u ?is ,act1 or any o!r ,act to 
make loans "u ?is "p = :i* ! fir/       
disbursem5t is aft] ,septemb] #cj1      
#bjbf1 except ,f$]al ,direct            
simplification loans "u section #dfj;,a1
 or z expressly au?oriz$ by an ,act (   
,congress enact$ aft] ! date ( enactm5t 
( ,high] ,education ,re=m & ,opportunity
 ,act ( #bjai4  7d7 ,/ud5t eligibility  
beg9n+ ) aw>d ye> #bjbb  7#a7 ,new      
borr[]s ,no loan may be made "u ?is "p  
to a new borr[] = :i* ! fir/ disbursem5t
 is aft] ,june #cj1 #bjbb1 except ,f$]al
 ,direct simplification loans "u section
 #dfj;,a4  7#b7 ,borr[]s ) out/&+       
balances ,subject to p>agraph 7#c71 )   
respect to a borr[] :o1 z ( ,july #a1   
#bjbb1 has an out/&+ balance ( pr9cipal 
or int]e/ ow+ on a loan made "u ?is "p t
 is n a ,f$]al ,direct simplification   
loan "u section #dfj;,a1 su* borr[]     
may--  7,a7 9 ! case ( su* a loan made  
to ! borr[] = enrollm5t 9 a program (   

und]graduate education1 borr[ loans made
 "u ?is "p t are n ,f$]al ,direct       
simplification loans "u section #dfj;,a 
= any program ( und]graduate education  
?r\gh ! close ( ,septemb] #cj1 #bjbf2   
7,b7 9 ! case ( su* a loan made to !    
borr[] = enrollm5t 9 a program (        
graduate or pr(essional education1 borr[
 loans made "u ?is "p t are n ,f$]al    
,direct simplification loans "u section 
#dfj;,a = any program ( graduate or     
pr(essional education ?r\gh ! close (   
,septemb] #cj1 #bjbf2 &  7,c7 9 ! case (
 su* a loan made to ! borr[] on behalf (
 a dep5d5t /ud5t = ! /ud5t's enrollm5t 9
 a program ( und]graduate education1    
borr[ loans made "u ?is "p t are n      
,f$]al ,direct simplification loans "u  
section #dfj;,a on behalf ( su* /ud5t   
?r\gh ! close ( ,septemb] #cj1 #bjbf4   
7#c7 ,loss ( eligibility ,a borr[]      
describ$ 9 p>agraph 7#b7 :o borr[s a    
,f$]al ,direct simplification loan made 
"u section #dfj;,a = :i* ! fir/         
disbursem5t is made be=e ,septemb] #cj1 

#bjbf1 %all lose ! borr[]'s eligibility 
to borr[ a loan "u ?is "p t is n a      
,f$]al ,direct simplification loan "u   
section #dfj;,a 9 accordance ) p>agraph 
7#b74  4  7b7 ,f$]al ,direct            
simplification loans ,"p ,d ( title ,,iv
 ( ! ,high] ,education ,act ( #aife 7#bj
 ,u4,s4,c4 #ajhg;a et seq47 is am5d$ by 
add+ at ! end ! foll[+3  #dfj;,a4 ,f$]al
 ,direct simplification loans  7a7 ,9   
g5]al ,beg9n+ on ,july #a1 #bjbb1 except
 z provid$ 9 section #dea7;d71 !        
,secret>y %all make loans to borr[]s "u 
?is section4 ,loans made "u ?is section 
%all be kn[n z ,f$]al ,direct           
simplification loans4  7b7 ,f$]al       
,direct simplification loans ,!         
provisions ( ?is "p %all apply ) respect
 to ,f$]al ,direct simplification loans1
 except t ,f$]al ,direct simplification 
loans %all be made 9 accordance ) !     
foll[+3  7#a7 ,! applicable rate (      
int]e/ on a loan made "u ?is section    
%all1 = loans disburs$ dur+ any #ab-mon?
 p]iod beg9n+ on ,july #a & end+ on     

,june #cj1 be det]m9$ on ! prec$+ ,june 
#a & be equal to--  7,a7 a rate equal to
 ! high yield ( ! #aj-ye> ,treasury note
 auction$ at ! f9al auction held prior  
to su* ,june #a2 plus  7,b7 #c4f p]c5t4 
7#b7 ,int]e/ on a loan made "u ?is      
section %all beg9 to accrue on ! date ! 
loan is disburs$4  7#c7 ,! maximum--    
7,a7 annual am\nt ( loans "u ?is section
 an und]graduate /ud5t may borr[ 9 any  
academic ye> 7z def9$ 9 section         
#dha7;a77#b77 or its equival5t %all be  
equal to #g1ejj2 &  7,b7 aggregate am\nt
 ( loans "u ?is section an und]graduate 
/ud5t may borr[ %all be equal to        
#cj1jjj4  7#d7 ,! maximum-- 7,a7 annual 
am\nt ( loans "u ?is section a graduate 
or pr(essional /ud5t may borr[ 9 any    
academic ye> 7z def9$ 9 section         
#dha7;a77#b77 or its equival5t %all be  
equal to #ab1ejj2 &  7,b7 aggregate     
am\nt ( loans "u ?is section a graduate 
or pr(essional /ud5t may borr[ %all be  
equal to #ej1jjj4  7#e7 ,! only l5g? (  
repaym5t-- 7,a7 = a loan borr[$ by an   

und]graduate /ud5t %all be #ae ye>s2 &  
7,b7 = a loan borr[$ by a graduate or   
pr(essional /ud5t %all be #be ye>s4     
7#f7 ,repaym5t on a loan made "u ?is    
section %all beg9--  7,a7 aft] #abe     
p]c5t ( ! normal "t = completion ( !    
program ( /udy = :i* ! borr[] receives !
 loan "u ?is section2 or  7,b7 if !     
borr[] )draws f ! program ( /udy be=e ! 
borr[] completes ! program1 #f mon?s    
aft] ! date ! borr[] )draws4  7#g7 ,!   
,secret>y %all n repay or cancel any    
out/&+ balance ( pr9cipal or int]e/ due 
on a ,f$]al ,direct simplification loan 
z "p ( a /ud5t loan =giv5ess program1   
includ+ su* a program "u section #dee7m7
 & section #dic;,c4  7c7 ,au?orization  
,to limit loan am\nts ,an in/itution (  
high] education t is requir$ "u ,/ate   
law to enroll all eligible applicants = 
an academic ye> may limit ! am\nt (     
loans "u ?is section t a /ud5t may borr[
 = su* academic ye> to n m ?an ! tuition
 & fees at su* in/itution = su* academic
 ye>4  7d7 ,loan fee ,! ,secret>y %all n

 *>ge ! borr[] ( a loan made "u ?is "p  
an orig9ation fee4  7e7 ,repaym5t ,a    
borr[] ( a loan made "u ?is section may 
accel]ate )\t p5alty repaym5t ( ! :ole  
or any "p ( ! loan4  4  #cjb4 ,phas+ out
 loan =giv5ess ,! ,high] ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ajja et seq47  
is am5d$-- 7#a7 9 section #dee--  7,a7 9
 subsection 7d77#a71 9 ! matt] prec$+   
subp>agraph 7,a71 by ins]t+ 7except a   
,f$]al ,direct simplification loan7 aft]
 borr[] ( a loan made "u ?is "p2  7,b7 9
 subsection 7e71 by add+ at ! end !     
foll[+3  7#h7 ,f$]al ,direct            
simplification loans ,income cont+5t    
repaym5t %all n be available = a ,f$]al 
,direct simplification loan4  2 &  7,c7 
9 subsection 7m71 by add+ at ! end !    
foll[+3  7#e7 ,elim9ation ( loan        
=giv5ess  7,a7 ,9 ,g5]al ,not)/&+ any   
o!r provision ( ?is ,act & subject to   
subp>agraph 7,b71 ) respect to any loan 
made on or aft] ,july #a1 #bjbb1 !      
,secret>y may n cancel any out/&+       
balance ( pr9cipal & int]e/ due on !    

loan = ! borr[] ( ! loan pursuant to ?is
 subsection4  7,b7 ,loans = cont9u+     
program ( /udy ,9 ! case ( a borr[] ^:  
fir/ loan = a program ( /udy is made    
prior to ,july #a1 #bjbb1 ! ,secret>y   
may repay or cancel any out/&+ balance (
 pr9cipal & int]e/ due on ! subsequ5t   
loans = t borr[] = ! same program ( /udy
 pursuant to ?is subsection =--  7i7    
loans made dur+ ! "t x takes to complete
 t program ( /udy2 or  7ii7 loans made  
be=e ,july #a1 #bjbf2  :i*ev] occurs    
e>li]4  2 &  7#b7 9 section #dic;,c1 by 
add+ at ! end ! foll[+3  7f7 ,elim9ation
 ( loan =giv5ess  7#a7 ,9 ,g5]al        
,not)/&+ any o!r provision ( ?is ,act & 
subject to p>agraph 7#b71 ) respect to  
any loan made on or aft] ,july #a1      
#bjbb1 ! ,secret>y may n repay or cancel
 any out/&+ balance ( pr9cipal & int]e/ 
due on ! loan = ! borr[] ( ! loan       
pursuant to ?is section4  7#b7 ,loans = 
cont9u+ program ( /udy ,9 ! case ( a    
borr[] ^: fir/ loan = a program ( /udy  
is made prior to ,july #a1 #bjbb1 !     

,secret>y may repay or cancel any out/&+
 balance ( pr9cipal & int]e/ due on !   
subsequ5t loans = t borr[] = ! same     
program ( /udy pursuant to ?is section  
=--  7,a7 loans made dur+ ! "t x takes  
to complete t program ( /udy2 or  7,b7  
loans made be=e ,july #a1 #bjbf2  :i*ev]
 occurs e>li]4  4  ,,iv ,s*ool          
,acc\ntability = ,/ud5t ,loans  #dja4   
,s*ool acc\ntability = /ud5t loans  7a7 
,default rate f9e ,section #dhg ( !     
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajid71 z am5d$ by section    
#bja1 is fur!r am5d$--  7#a7 9          
subsection 7a71 by add+ at ! end !      
foll[+3  7#ca7 ,! in/itution w pay a    
default rate f9e t is det]m9$ pursuant  
to subsection 7k74  2 &  7#b7 by add+ at
 ! end ! foll[+3  7k7 ,default rate f9e 
7#a7 ,9 g5]al ,ea* in/itution describ$ 9
 p>agraph 7#b7 %all pay to ! ,secret>y  
an annual default rate f9e 9 accordance 
) ?is subsection4  7#b7 ,applicable     
in/itutions ,an in/itution %all pay a   
default rate f9e "u ?is subsection = a  

fiscal ye> bas$ on ! cohort default rate
 7z def9$ 9 section #dce7m77 on loans   
made "u ?is title = su* fiscal ye>4     
7#c7 ,f9e  7,a7 ,9 g5]al ,ea* in/itution
 describ$ 9 p>agraph 7#b7 %all pay a    
default rate f9e = a fiscal ye> t is    
equal to #aj p]c5t ( ! applicable am\nt 
det]m9$ "u subp>agraph 7,b77i7 = su*    
fiscal ye>4  7,b7 ,applicable am\nt  7i7
 ,9 g5]al ,! applicable am\nt = a fiscal
 ye> ) respect to an in/itution %all be 
an am\nt equal to ! product ( ! am\nt ( 
loans made "u ?is title = su* fiscal    
ye>1 & ! applicable rate det]m9$ 9      
clause 7ii74 ,if ! applicable rate is   
equal to or less ?an z]o p]c5t !n !     
applicable am\nt %all be equal to z]o4  
7ii7 ,applicable rate ,! applicable rate
 = a fiscal ye> ) respect to an         
in/itution %all be ! rate t is equal to 
! diff]5ce betwe5 ! cohort default rate 
on loans made "u ?is title 7z def9$ 9   
section #dce7m77 = su* fiscal ye> & !   
av]age rate ( total unemploym5t 9 !     
,unit$ ,/ates = ! #c-ye> p]iod cov]$ by 

t cohort default rate 7z def9$ 9 section
 #dce7m771 z det]m9$ by ! ,secret>y (   
,labor4  7#d7 ,cr$it = c]ta9 in/itutions
 ,ea* in/itution t is describ$ 9        
p>agraph 7#b7 %all receive a #djj cr$it 
= ! fiscal ye> = ea* graduate ( !       
in/itution dur+ su* fiscal ye> :o       
receiv$ a ,f$]al ,pell ,grant :ile      
enroll$ at ! in/itution4  7#e7          
,flexibility 9 c\nsel & advice ,not)/&+ 
any o!r provision ( ! ,act1 ! ,secret>y 
%all grant in/itutions ( high] education
 flexibility "u ?is ,act to c\nsel &    
advise /ud5ts on ,f$]al f9ancial aid1   
includ+ grant+ flexibility = in/itutions
 to aw>d less ?an ! maximum am\nt (     
,f$]al /ud5t aid = :i* an individual is 
eligible if ! co/ ( tuition1 room1 &    
bo>d at ! in/itution is less ?an su*    
maximum am\nt4  4  7b7 ,flexibility 9   
c\nsel+ & advice ,section #dhe7l7 ( !   
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajib7l77 is am5d$ by add+ at 
! end ! foll[+3  7#c7 ,flexibility 9    
c\nsel+ & advice ,9 addition to !       

entrance c\nsel+ "u p>agraph 7#a71 an   
eligible in/itution may require any     
borr[]1 at or prior to ! "t ( a         
disbursem5t to ! borr[] ( a loan made "u
 "p ,d1 to receive ! in=mation describ$ 
9 p>agraph 7#b7 ) respect to su* loan1  
or any o!r f9ancial c\nsel+1 includ+    
f9ancial lit]acy c\nsel+4  4